State of Illinois
91st General Assembly
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91_SB1310

 
                                               LRB9110257SMdv

 1        AN ACT in relation to taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Use  Tax  Act  is  amended by changing
 5    Sections 3-10 and 9 as follows:

 6        (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
 7        Sec. 3-10.  Rate of tax.  Unless  otherwise  provided  in
 8    this  Section,  the tax imposed by this Act is at the rate of
 9    6.25% of either the selling price or the fair  market  value,
10    if  any,  of  the  tangible  personal property.  In all cases
11    where property functionally used or consumed is the  same  as
12    the  property  that  was purchased at retail, then the tax is
13    imposed on the selling price of the property.  In  all  cases
14    where  property functionally used or consumed is a by-product
15    or waste product that  has  been  refined,  manufactured,  or
16    produced  from  property purchased at retail, then the tax is
17    imposed on the lower of the fair market value, if any, of the
18    specific property so used in this State  or  on  the  selling
19    price  of  the  property purchased at retail. For purposes of
20    this Section "fair market value" means  the  price  at  which
21    property  would  change  hands  between a willing buyer and a
22    willing seller, neither being under any compulsion to buy  or
23    sell  and  both  having  reasonable knowledge of the relevant
24    facts. The fair market value shall be established by Illinois
25    sales  by  the  taxpayer  of  the  same  property   as   that
26    functionally  used or consumed, or if there are no such sales
27    by the  taxpayer,  then  comparable  sales  or  purchases  of
28    property of like kind and character in Illinois.
29        With  respect to motor fuel, as defined in Section 1.1 of
30    the Motor Fuel Tax Law, and gasohol, as  defined  in  Section
31    3-40  of  the  Use Tax Act, the tax is imposed at the rate of
 
                            -2-                LRB9110257SMdv
 1    1.25%.  If, however, the aggregate tax  revenues  from  motor
 2    fuel  and  gasohol under the Use Tax Act, the Service Use Tax
 3    Act, the Service  Occupation  Tax  Act,  and  the  Retailers'
 4    Occupation  Tax  Act  during  the period from October 1, 2003
 5    through September 30, 2004 are not at least 15% more than the
 6    aggregate tax revenues from  motor  fuel  and  gasohol  under
 7    those  Acts  during  the  period from October 1, 2000 through
 8    September 30, 2001, then beginning January 1, 2005 the tax is
 9    imposed on motor fuel and gasohol at the 6.25% general rate.
10        With respect to gasohol, the  tax  imposed  by  this  Act
11    applies  to  70%  of  the  proceeds of sales made on or after
12    January 1, 1990, and before July 1, 2003, and to 100% of  the
13    proceeds of sales made thereafter.
14        With  respect to food for human consumption that is to be
15    consumed off the  premises  where  it  is  sold  (other  than
16    alcoholic  beverages,  soft  drinks,  and  food that has been
17    prepared for  immediate  consumption)  and  prescription  and
18    nonprescription   medicines,   drugs,   medical   appliances,
19    modifications to a motor vehicle for the purpose of rendering
20    it  usable  by  a disabled person, and insulin, urine testing
21    materials, syringes, and needles used by diabetics, for human
22    use, the tax is imposed at the rate of 1%. For  the  purposes
23    of  this  Section, the term "soft drinks" means any complete,
24    finished,   ready-to-use,   non-alcoholic   drink,    whether
25    carbonated  or  not, including but not limited to soda water,
26    cola, fruit juice, vegetable juice, carbonated water, and all
27    other preparations commonly known as soft drinks of  whatever
28    kind  or  description  that  are  contained  in any closed or
29    sealed bottle, can, carton, or container, regardless of size.
30    "Soft drinks" does not include  coffee,  tea,  non-carbonated
31    water,  infant  formula,  milk or milk products as defined in
32    the Grade A Pasteurized Milk and Milk Products Act, or drinks
33    containing 50% or more natural fruit or vegetable juice.
34        Notwithstanding any other provisions of this  Act,  "food
 
                            -3-                LRB9110257SMdv
 1    for human consumption that is to be consumed off the premises
 2    where  it  is  sold" includes all food sold through a vending
 3    machine, except  soft  drinks  and  food  products  that  are
 4    dispensed  hot  from  a  vending  machine,  regardless of the
 5    location of the vending machine.
 6        If the property  that  is  purchased  at  retail  from  a
 7    retailer  is  acquired  outside  Illinois  and  used  outside
 8    Illinois before being brought to Illinois for use here and is
 9    taxable  under this Act, the "selling price" on which the tax
10    is computed shall be reduced by an amount that  represents  a
11    reasonable allowance for depreciation for the period of prior
12    out-of-state use.
13    (Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
14    91-51, eff. 6-30-99.)

15        (35 ILCS 105/9) (from Ch. 120, par. 439.9)
16        Sec.  9.  Except  as  to  motor   vehicles,   watercraft,
17    aircraft,  and  trailers  that  are required to be registered
18    with an agency of  this  State,  each  retailer  required  or
19    authorized  to  collect the tax imposed by this Act shall pay
20    to the Department the amount of such tax (except as otherwise
21    provided) at the time when he is required to file his  return
22    for  the  period  during which such tax was collected, less a
23    discount of 2.1% prior to January 1, 1990, and 1.75%  on  and
24    after  January 1, 1990, or $5 per calendar year, whichever is
25    greater, which is  allowed  to  reimburse  the  retailer  for
26    expenses  incurred  in  collecting  the tax, keeping records,
27    preparing and filing returns, remitting the tax and supplying
28    data to the Department on request.  In the case of  retailers
29    who  report  and  pay the tax on a transaction by transaction
30    basis, as provided in this Section, such  discount  shall  be
31    taken  with  each  such  tax  remittance instead of when such
32    retailer files his periodic  return.   A  retailer  need  not
33    remit  that  part  of  any tax collected by him to the extent
 
                            -4-                LRB9110257SMdv
 1    that he is required to remit and does remit the  tax  imposed
 2    by  the  Retailers'  Occupation  Tax Act, with respect to the
 3    sale of the same property.
 4        Where such tangible personal property  is  sold  under  a
 5    conditional  sales  contract, or under any other form of sale
 6    wherein the payment of the principal sum, or a part  thereof,
 7    is  extended  beyond  the  close  of the period for which the
 8    return is filed, the retailer, in collecting the tax  (except
 9    as to motor vehicles, watercraft, aircraft, and trailers that
10    are  required to be registered with an agency of this State),
11    may  collect  for  each  tax  return  period,  only  the  tax
12    applicable  to  that  part  of  the  selling  price  actually
13    received during such tax return period.
14        Except as provided in this  Section,  on  or  before  the
15    twentieth  day  of  each  calendar month, such retailer shall
16    file a return for the preceding calendar month.  Such  return
17    shall  be  filed  on  forms  prescribed by the Department and
18    shall  furnish  such  information  as  the   Department   may
19    reasonably require.
20        The  Department  may  require  returns  to  be filed on a
21    quarterly basis.  If so required, a return for each  calendar
22    quarter  shall be filed on or before the twentieth day of the
23    calendar month following the end of  such  calendar  quarter.
24    The taxpayer shall also file a return with the Department for
25    each  of the first two months of each calendar quarter, on or
26    before the twentieth day of  the  following  calendar  month,
27    stating:
28             1.  The name of the seller;
29             2.  The  address  of the principal place of business
30        from which he engages in the business of selling tangible
31        personal property at retail in this State;
32             3.  The total amount of taxable receipts received by
33        him during the preceding calendar  month  from  sales  of
34        tangible  personal  property by him during such preceding
 
                            -5-                LRB9110257SMdv
 1        calendar month, including receipts from charge  and  time
 2        sales, but less all deductions allowed by law;
 3             4.  The  amount  of credit provided in Section 2d of
 4        this Act;
 5             5.  The amount of tax due;
 6             5-5.  The signature of the taxpayer; and
 7             6.  Such  other  reasonable   information   as   the
 8        Department may require.
 9        If a taxpayer fails to sign a return within 30 days after
10    the proper notice and demand for signature by the Department,
11    the  return shall be considered valid and any amount shown to
12    be due on the return shall be deemed assessed.
13        Beginning October 1, 1993, a taxpayer who has an  average
14    monthly  tax  liability  of  $150,000  or more shall make all
15    payments required by rules of the  Department  by  electronic
16    funds transfer. Beginning October 1, 1994, a taxpayer who has
17    an  average  monthly  tax liability of $100,000 or more shall
18    make all payments required by  rules  of  the  Department  by
19    electronic  funds  transfer.  Beginning  October  1,  1995, a
20    taxpayer who has an average monthly tax liability of  $50,000
21    or  more  shall  make  all  payments required by rules of the
22    Department by electronic funds transfer. Beginning October 1,
23    2000, a taxpayer who has an annual tax liability of  $200,000
24    or  more  shall  make  all  payments required by rules of the
25    Department by electronic funds transfer.   The  term  "annual
26    tax liability" shall be the sum of the taxpayer's liabilities
27    under   this  Act,  and  under  all  other  State  and  local
28    occupation and use tax laws administered by  the  Department,
29    for   the  immediately  preceding  calendar  year.  The  term
30    "average  monthly  tax  liability"  means  the  sum  of   the
31    taxpayer's  liabilities  under  this Act, and under all other
32    State and local occupation and use tax laws  administered  by
33    the  Department,  for the immediately preceding calendar year
34    divided by 12.
 
                            -6-                LRB9110257SMdv
 1        Before August 1 of  each  year  beginning  in  1993,  the
 2    Department  shall  notify  all  taxpayers  required  to  make
 3    payments by electronic funds transfer. All taxpayers required
 4    to  make  payments  by  electronic  funds transfer shall make
 5    those payments for a minimum of one year beginning on October
 6    1.
 7        Any taxpayer not required to make payments by  electronic
 8    funds transfer may make payments by electronic funds transfer
 9    with the permission of the Department.
10        All  taxpayers  required  to  make  payment by electronic
11    funds transfer and any taxpayers  authorized  to  voluntarily
12    make  payments  by electronic funds transfer shall make those
13    payments in the manner authorized by the Department.
14        The Department shall adopt such rules as are necessary to
15    effectuate a program of electronic  funds  transfer  and  the
16    requirements of this Section.
17        Before October 1, 2000, if the taxpayer's average monthly
18    tax   liability   to  the  Department  under  this  Act,  the
19    Retailers' Occupation Tax Act,  the  Service  Occupation  Tax
20    Act,  the  Service Use Tax Act was $10,000 or more during the
21    preceding 4 complete  calendar  quarters,  he  shall  file  a
22    return  with the Department each month by the 20th day of the
23    month  next  following  the  month  during  which  such   tax
24    liability   is  incurred  and  shall  make  payments  to  the
25    Department on or before the 7th, 15th, 22nd and last  day  of
26    the  month  during  which  such liability is incurred. On and
27    after October 1, 2000, if the taxpayer's average monthly  tax
28    liability  to  the  Department under this Act, the Retailers'
29    Occupation Tax Act, the Service Occupation Tax Act,  and  the
30    Service  Use Tax Act was $20,000 or more during the preceding
31    4 complete calendar quarters, he shall file a return with the
32    Department each month by the  20th  day  of  the  month  next
33    following  the  month  during  which  such  tax  liability is
34    incurred and shall make  payment  to  the  Department  on  or
 
                            -7-                LRB9110257SMdv
 1    before  the  7th,  15th,  22nd  and  last day of or the month
 2    during which such liability is incurred. If the month  during
 3    which  such  tax liability is incurred began prior to January
 4    1, 1985, each payment shall be in an amount equal to  1/4  of
 5    the  taxpayer's  actual  liability for the month or an amount
 6    set by the Department  not  to  exceed  1/4  of  the  average
 7    monthly  liability  of the taxpayer to the Department for the
 8    preceding 4 complete calendar quarters (excluding  the  month
 9    of  highest  liability  and  the month of lowest liability in
10    such 4 quarter period).  If the month during which  such  tax
11    liability is incurred begins on or after January 1, 1985, and
12    prior  to January 1, 1987, each payment shall be in an amount
13    equal to 22.5% of the taxpayer's  actual  liability  for  the
14    month  or  27.5%  of  the  taxpayer's  liability for the same
15    calendar month of the preceding year.  If  the  month  during
16    which  such  tax  liability  is  incurred  begins on or after
17    January 1, 1987, and prior to January 1, 1988,  each  payment
18    shall be in an amount equal to 22.5% of the taxpayer's actual
19    liability for the month or 26.25% of the taxpayer's liability
20    for  the  same  calendar month of the preceding year.  If the
21    month during which such tax liability is incurred  begins  on
22    or  after  January  1, 1988, and prior to January 1, 1989, or
23    begins on or after January 1, 1996, each payment shall be  in
24    an  amount  equal to 22.5% of the taxpayer's actual liability
25    for the month or 25% of the taxpayer's liability for the same
26    calendar month of the preceding year.  If  the  month  during
27    which  such  tax  liability  is  incurred  begins on or after
28    January 1, 1989, and prior to January 1, 1996,  each  payment
29    shall be in an amount equal to 22.5% of the taxpayer's actual
30    liability  for  the  month or 25% of the taxpayer's liability
31    for the same calendar month of the preceding year or 100%  of
32    the  taxpayer's  actual  liability  for  the  quarter monthly
33    reporting  period.   The  amount  of  such  quarter   monthly
34    payments shall be credited against the final tax liability of
 
                            -8-                LRB9110257SMdv
 1    the  taxpayer's  return  for  that  month.  Before October 1,
 2    2000, once applicable,  the  requirement  of  the  making  of
 3    quarter  monthly  payments  to  the Department shall continue
 4    until  such  taxpayer's  average  monthly  liability  to  the
 5    Department during the preceding 4 complete calendar  quarters
 6    (excluding  the  month  of highest liability and the month of
 7    lowest  liability)  is  less  than  $9,000,  or  until   such
 8    taxpayer's  average  monthly  liability  to the Department as
 9    computed  for  each  calendar  quarter  of  the  4  preceding
10    complete  calendar  quarter  period  is  less  than  $10,000.
11    However, if  a  taxpayer  can  show  the  Department  that  a
12    substantial  change  in  the taxpayer's business has occurred
13    which causes the taxpayer  to  anticipate  that  his  average
14    monthly  tax  liability for the reasonably foreseeable future
15    will fall below the $10,000 threshold stated above, then such
16    taxpayer may petition  the  Department  for  change  in  such
17    taxpayer's  reporting  status.  On and after October 1, 2000,
18    once applicable, the requirement of  the  making  of  quarter
19    monthly  payments to the Department shall continue until such
20    taxpayer's average monthly liability to the Department during
21    the preceding 4 complete  calendar  quarters  (excluding  the
22    month of highest liability and the month of lowest liability)
23    is less than $19,000 or until such taxpayer's average monthly
24    liability  to  the  Department  as computed for each calendar
25    quarter of the 4 preceding complete calendar  quarter  period
26    is  less  than  $20,000.  However, if a taxpayer can show the
27    Department  that  a  substantial  change  in  the  taxpayer's
28    business has occurred which causes the taxpayer to anticipate
29    that his average monthly tax  liability  for  the  reasonably
30    foreseeable  future  will  fall  below  the $20,000 threshold
31    stated above, then such taxpayer may petition the  Department
32    for  a  change  in  such  taxpayer's  reporting  status.  The
33    Department shall  change  such  taxpayer's  reporting  status
34    unless  it  finds  that such change is seasonal in nature and
 
                            -9-                LRB9110257SMdv
 1    not likely to be long  term.  If  any  such  quarter  monthly
 2    payment  is not paid at the time or in the amount required by
 3    this Section, then the taxpayer shall be liable for penalties
 4    and interest on the difference between the minimum amount due
 5    and the amount of such quarter monthly payment  actually  and
 6    timely  paid,  except  insofar as the taxpayer has previously
 7    made payments for that month to the Department in  excess  of
 8    the  minimum  payments  previously  due  as  provided in this
 9    Section.  The Department  shall  make  reasonable  rules  and
10    regulations  to govern the quarter monthly payment amount and
11    quarter monthly payment dates for taxpayers who file on other
12    than a calendar monthly basis.
13        If any such payment provided for in this Section  exceeds
14    the  taxpayer's  liabilities  under  this Act, the Retailers'
15    Occupation Tax Act, the Service Occupation Tax  Act  and  the
16    Service  Use Tax Act, as shown by an original monthly return,
17    the  Department  shall  issue  to  the  taxpayer   a   credit
18    memorandum  no  later than 30 days after the date of payment,
19    which memorandum may be submitted  by  the  taxpayer  to  the
20    Department  in  payment  of  tax liability subsequently to be
21    remitted by the taxpayer to the Department or be assigned  by
22    the  taxpayer  to  a  similar  taxpayer  under  this Act, the
23    Retailers' Occupation Tax Act, the Service Occupation Tax Act
24    or the Service Use Tax Act,  in  accordance  with  reasonable
25    rules  and  regulations  to  be prescribed by the Department,
26    except that if such excess payment is shown  on  an  original
27    monthly return and is made after December 31, 1986, no credit
28    memorandum shall be issued, unless requested by the taxpayer.
29    If  no  such  request  is  made, the taxpayer may credit such
30    excess payment  against  tax  liability  subsequently  to  be
31    remitted  by  the  taxpayer to the Department under this Act,
32    the Retailers' Occupation Tax Act, the Service Occupation Tax
33    Act or the Service Use Tax Act, in accordance with reasonable
34    rules and regulations prescribed by the Department.   If  the
 
                            -10-               LRB9110257SMdv
 1    Department  subsequently  determines  that all or any part of
 2    the credit taken was not actually due to  the  taxpayer,  the
 3    taxpayer's  2.1%  or 1.75% vendor's discount shall be reduced
 4    by 2.1% or 1.75% of the difference between the  credit  taken
 5    and  that  actually due, and the taxpayer shall be liable for
 6    penalties and interest on such difference.
 7        If the retailer is otherwise required to file  a  monthly
 8    return and if the retailer's average monthly tax liability to
 9    the  Department  does  not  exceed  $200,  the Department may
10    authorize his returns to be filed on a quarter annual  basis,
11    with  the  return for January, February, and March of a given
12    year being due by April 20 of such year; with the return  for
13    April,  May  and June of a given year being due by July 20 of
14    such year; with the return for July, August and September  of
15    a  given  year being due by October 20 of such year, and with
16    the return for October, November and December of a given year
17    being due by January 20 of the following year.
18        If the retailer is otherwise required to file  a  monthly
19    or quarterly return and if the retailer's average monthly tax
20    liability   to  the  Department  does  not  exceed  $50,  the
21    Department may authorize his returns to be filed on an annual
22    basis, with the return for a given year being due by  January
23    20 of the following year.
24        Such  quarter  annual  and annual returns, as to form and
25    substance, shall be  subject  to  the  same  requirements  as
26    monthly returns.
27        Notwithstanding   any   other   provision   in  this  Act
28    concerning the time within which  a  retailer  may  file  his
29    return, in the case of any retailer who ceases to engage in a
30    kind  of  business  which  makes  him  responsible for filing
31    returns under this Act, such  retailer  shall  file  a  final
32    return  under  this Act with the Department not more than one
33    month after discontinuing such business.
34        In addition, with respect to motor vehicles,  watercraft,
 
                            -11-               LRB9110257SMdv
 1    aircraft,  and  trailers  that  are required to be registered
 2    with an agency of this State,  every  retailer  selling  this
 3    kind  of  tangible  personal  property  shall  file, with the
 4    Department, upon a form to be prescribed and supplied by  the
 5    Department,  a separate return for each such item of tangible
 6    personal property  which  the  retailer  sells,  except  that
 7    where,  in  the  same  transaction,  a  retailer of aircraft,
 8    watercraft, motor vehicles or trailers  transfers  more  than
 9    one aircraft, watercraft, motor vehicle or trailer to another
10    aircraft,  watercraft,  motor vehicle or trailer retailer for
11    the purpose of resale, that seller for resale may report  the
12    transfer  of  all the aircraft, watercraft, motor vehicles or
13    trailers involved in that transaction to  the  Department  on
14    the  same  uniform invoice-transaction reporting return form.
15    For purposes of this Section, "watercraft" means a  Class  2,
16    Class  3,  or Class 4 watercraft as defined in Section 3-2 of
17    the Boat Registration and Safety Act, a personal  watercraft,
18    or any boat equipped with an inboard motor.
19        The  transaction  reporting  return  in the case of motor
20    vehicles or trailers that are required to be registered  with
21    an  agency  of  this State, shall be the same document as the
22    Uniform Invoice referred to in Section 5-402 of the  Illinois
23    Vehicle  Code  and  must  show  the  name  and address of the
24    seller; the name and address of the purchaser; the amount  of
25    the  selling  price  including  the  amount  allowed  by  the
26    retailer  for  traded-in property, if any; the amount allowed
27    by the retailer for the traded-in tangible personal property,
28    if any, to the extent to which Section 2 of this  Act  allows
29    an exemption for the value of traded-in property; the balance
30    payable  after  deducting  such  trade-in  allowance from the
31    total selling price; the amount of tax due from the  retailer
32    with respect to such transaction; the amount of tax collected
33    from  the  purchaser  by the retailer on such transaction (or
34    satisfactory evidence that  such  tax  is  not  due  in  that
 
                            -12-               LRB9110257SMdv
 1    particular  instance, if that is claimed to be the fact); the
 2    place and date of the sale; a  sufficient  identification  of
 3    the  property  sold; such other information as is required in
 4    Section 5-402 of the Illinois Vehicle Code,  and  such  other
 5    information as the Department may reasonably require.
 6        The   transaction   reporting   return  in  the  case  of
 7    watercraft and aircraft must show the name and address of the
 8    seller; the name and address of the purchaser; the amount  of
 9    the  selling  price  including  the  amount  allowed  by  the
10    retailer  for  traded-in property, if any; the amount allowed
11    by the retailer for the traded-in tangible personal property,
12    if any, to the extent to which Section 2 of this  Act  allows
13    an exemption for the value of traded-in property; the balance
14    payable  after  deducting  such  trade-in  allowance from the
15    total selling price; the amount of tax due from the  retailer
16    with respect to such transaction; the amount of tax collected
17    from  the  purchaser  by the retailer on such transaction (or
18    satisfactory evidence that  such  tax  is  not  due  in  that
19    particular  instance, if that is claimed to be the fact); the
20    place and date of the sale, a  sufficient  identification  of
21    the   property  sold,  and  such  other  information  as  the
22    Department may reasonably require.
23        Such transaction reporting  return  shall  be  filed  not
24    later  than  20  days  after the date of delivery of the item
25    that is being sold, but may be filed by the retailer  at  any
26    time   sooner  than  that  if  he  chooses  to  do  so.   The
27    transaction reporting return and tax remittance or  proof  of
28    exemption  from  the  tax  that is imposed by this Act may be
29    transmitted to the Department by way of the State agency with
30    which, or State officer  with  whom,  the  tangible  personal
31    property   must  be  titled  or  registered  (if  titling  or
32    registration is required) if the Department and  such  agency
33    or  State officer determine that this procedure will expedite
34    the processing of applications for title or registration.
 
                            -13-               LRB9110257SMdv
 1        With each such transaction reporting return, the retailer
 2    shall remit the proper amount of tax  due  (or  shall  submit
 3    satisfactory evidence that the sale is not taxable if that is
 4    the  case),  to  the  Department or its agents, whereupon the
 5    Department shall  issue,  in  the  purchaser's  name,  a  tax
 6    receipt  (or  a certificate of exemption if the Department is
 7    satisfied that the particular sale is tax exempt) which  such
 8    purchaser  may  submit  to  the  agency  with which, or State
 9    officer with whom, he must title  or  register  the  tangible
10    personal   property   that   is   involved   (if  titling  or
11    registration is required)  in  support  of  such  purchaser's
12    application  for an Illinois certificate or other evidence of
13    title or registration to such tangible personal property.
14        No retailer's failure or refusal to remit tax under  this
15    Act  precludes  a  user,  who  has paid the proper tax to the
16    retailer, from obtaining his certificate of  title  or  other
17    evidence of title or registration (if titling or registration
18    is  required)  upon  satisfying the Department that such user
19    has paid the proper tax (if tax is due) to the retailer.  The
20    Department shall adopt appropriate rules  to  carry  out  the
21    mandate of this paragraph.
22        If  the  user who would otherwise pay tax to the retailer
23    wants the transaction reporting return filed and the  payment
24    of  tax  or  proof of exemption made to the Department before
25    the retailer is willing to take these actions and  such  user
26    has  not  paid the tax to the retailer, such user may certify
27    to the fact of such delay by the retailer, and may (upon  the
28    Department   being   satisfied   of   the   truth   of   such
29    certification)  transmit  the  information  required  by  the
30    transaction  reporting  return  and the remittance for tax or
31    proof of exemption directly to the Department and obtain  his
32    tax  receipt  or  exemption determination, in which event the
33    transaction reporting return and tax  remittance  (if  a  tax
34    payment  was required) shall be credited by the Department to
 
                            -14-               LRB9110257SMdv
 1    the  proper  retailer's  account  with  the  Department,  but
 2    without the 2.1% or  1.75%  discount  provided  for  in  this
 3    Section  being  allowed.  When the user pays the tax directly
 4    to the Department, he shall pay the tax in  the  same  amount
 5    and in the same form in which it would be remitted if the tax
 6    had been remitted to the Department by the retailer.
 7        Where  a  retailer  collects  the tax with respect to the
 8    selling price of tangible personal property  which  he  sells
 9    and  the  purchaser thereafter returns such tangible personal
10    property and the retailer refunds the selling  price  thereof
11    to  the  purchaser,  such  retailer shall also refund, to the
12    purchaser, the tax so  collected  from  the  purchaser.  When
13    filing his return for the period in which he refunds such tax
14    to  the  purchaser, the retailer may deduct the amount of the
15    tax so refunded by him to the purchaser from  any  other  use
16    tax  which  such  retailer may be required to pay or remit to
17    the Department, as shown by such return, if the amount of the
18    tax to be deducted was previously remitted to the  Department
19    by  such  retailer.   If  the  retailer  has  not  previously
20    remitted  the  amount  of  such  tax to the Department, he is
21    entitled to no deduction under this Act upon  refunding  such
22    tax to the purchaser.
23        Any  retailer  filing  a  return under this Section shall
24    also include (for the purpose  of  paying  tax  thereon)  the
25    total  tax  covered  by such return upon the selling price of
26    tangible personal property purchased by him at retail from  a
27    retailer, but as to which the tax imposed by this Act was not
28    collected  from  the  retailer  filing  such return, and such
29    retailer shall remit the amount of such tax to the Department
30    when filing such return.
31        If experience indicates such action  to  be  practicable,
32    the  Department  may  prescribe  and furnish a combination or
33    joint return which will enable retailers, who are required to
34    file  returns  hereunder  and  also  under   the   Retailers'
 
                            -15-               LRB9110257SMdv
 1    Occupation  Tax  Act,  to  furnish all the return information
 2    required by both Acts on the one form.
 3        Where the retailer has more than one business  registered
 4    with  the  Department  under separate registration under this
 5    Act, such retailer may not file each return that is due as  a
 6    single  return  covering  all such registered businesses, but
 7    shall  file  separate  returns  for  each   such   registered
 8    business.
 9        Beginning  January  1,  1990,  each  month the Department
10    shall pay into the State and Local Sales Tax Reform  Fund,  a
11    special  fund  in the State Treasury which is hereby created,
12    the net revenue realized for the preceding month from the  1%
13    tax  on  sales  of  food for human consumption which is to be
14    consumed off the  premises  where  it  is  sold  (other  than
15    alcoholic  beverages,  soft  drinks  and  food which has been
16    prepared for  immediate  consumption)  and  prescription  and
17    nonprescription  medicines,  drugs,  medical  appliances  and
18    insulin,  urine  testing materials, syringes and needles used
19    by diabetics.
20        Beginning January 1,  1990,  each  month  the  Department
21    shall  pay  into the County and Mass Transit District Fund 4%
22    of the net revenue realized for the preceding month from  the
23    6.25%  general rate on the selling price of tangible personal
24    property which is purchased outside Illinois at retail from a
25    retailer and which is titled or registered by  an  agency  of
26    this State's government.
27        Beginning  January  1,  1990,  each  month the Department
28    shall pay into the State and Local Sales Tax Reform  Fund,  a
29    special  fund  in  the State Treasury, 20% of the net revenue
30    realized for the preceding month from the 6.25% general  rate
31    on  the  selling  price  of tangible personal property, other
32    than tangible personal property which  is  purchased  outside
33    Illinois  at  retail  from  a retailer and which is titled or
34    registered by an agency of this State's government.
 
                            -16-               LRB9110257SMdv
 1        Beginning November 1, 2000,  and  so  long  as  the  rate
 2    remains  at  1.25%,  each month the Department shall pay into
 3    the County and Mass Transit District  Fund  20%  of  the  net
 4    revenue  realized for the preceding month from the 1.25% rate
 5    on the selling price of motor fuel and gasohol.
 6        Beginning January 1,  1990,  each  month  the  Department
 7    shall  pay  into the Local Government Tax Fund 16% of the net
 8    revenue realized for  the  preceding  month  from  the  6.25%
 9    general  rate  on  the  selling  price  of  tangible personal
10    property which is purchased outside Illinois at retail from a
11    retailer and which is titled or registered by  an  agency  of
12    this State's government.
13        Beginning  November  1,  2000,  and  so  long as the rate
14    remains at 1.25%, each month the Department  shall  pay  into
15    the Local Government Tax Fund 80% of the net revenue realized
16    for  the  preceding  month from the 1.25% rate on the selling
17    price of motor fuel and gasohol.
18        Of the remainder of the moneys received by the Department
19    pursuant to this Act, (a) 1.75% thereof shall  be  paid  into
20    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
21    and on and after July 1, 1989, 3.8%  thereof  shall  be  paid
22    into  the  Build Illinois Fund; provided, however, that if in
23    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
24    as the case may be, of the moneys received by the  Department
25    and required to be paid into the Build Illinois Fund pursuant
26    to  Section 3 of the Retailers' Occupation Tax Act, Section 9
27    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
28    Section 9 of the Service Occupation Tax Act, such Acts  being
29    hereinafter  called the "Tax Acts" and such aggregate of 2.2%
30    or 3.8%, as the case may  be,  of  moneys  being  hereinafter
31    called  the  "Tax Act Amount", and (2) the amount transferred
32    to the Build Illinois Fund from the State and Local Sales Tax
33    Reform Fund shall be less than the  Annual  Specified  Amount
34    (as  defined  in  Section  3 of the Retailers' Occupation Tax
 
                            -17-               LRB9110257SMdv
 1    Act), an amount equal to the difference shall be  immediately
 2    paid  into the Build Illinois Fund from other moneys received
 3    by the Department pursuant  to  the  Tax  Acts;  and  further
 4    provided,  that  if on the last business day of any month the
 5    sum of (1) the Tax Act Amount required to be  deposited  into
 6    the  Build  Illinois  Bond Account in the Build Illinois Fund
 7    during such month and (2) the amount transferred during  such
 8    month  to  the  Build  Illinois Fund from the State and Local
 9    Sales Tax Reform Fund shall have been less than 1/12  of  the
10    Annual  Specified  Amount,  an amount equal to the difference
11    shall be immediately paid into the Build Illinois  Fund  from
12    other  moneys  received by the Department pursuant to the Tax
13    Acts; and, further provided,  that  in  no  event  shall  the
14    payments  required  under  the  preceding  proviso  result in
15    aggregate payments into the Build Illinois Fund  pursuant  to
16    this  clause (b) for any fiscal year in excess of the greater
17    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
18    for such fiscal year; and, further provided, that the amounts
19    payable into the Build Illinois Fund under  this  clause  (b)
20    shall be payable only until such time as the aggregate amount
21    on  deposit  under each trust indenture securing Bonds issued
22    and outstanding pursuant to the Build Illinois  Bond  Act  is
23    sufficient, taking into account any future investment income,
24    to  fully provide, in accordance with such indenture, for the
25    defeasance of or the payment of the principal of, premium, if
26    any, and interest on the Bonds secured by such indenture  and
27    on  any  Bonds  expected to be issued thereafter and all fees
28    and costs payable with respect thereto, all as  certified  by
29    the  Director  of  the  Bureau of the Budget.  If on the last
30    business day of any month  in  which  Bonds  are  outstanding
31    pursuant to the Build Illinois Bond Act, the aggregate of the
32    moneys  deposited  in  the Build Illinois Bond Account in the
33    Build Illinois Fund in such month  shall  be  less  than  the
34    amount  required  to  be  transferred  in such month from the
 
                            -18-               LRB9110257SMdv
 1    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
 2    Retirement  and  Interest  Fund pursuant to Section 13 of the
 3    Build Illinois Bond Act, an amount equal to  such  deficiency
 4    shall  be  immediately paid from other moneys received by the
 5    Department pursuant to the Tax Acts  to  the  Build  Illinois
 6    Fund;  provided,  however, that any amounts paid to the Build
 7    Illinois Fund in any fiscal year pursuant  to  this  sentence
 8    shall be deemed to constitute payments pursuant to clause (b)
 9    of  the  preceding  sentence  and  shall  reduce  the  amount
10    otherwise payable for such fiscal year pursuant to clause (b)
11    of  the  preceding  sentence.   The  moneys  received  by the
12    Department pursuant to this Act and required to be  deposited
13    into the Build Illinois Fund are subject to the pledge, claim
14    and charge set forth in Section 12 of the Build Illinois Bond
15    Act.
16        Subject  to  payment  of  amounts into the Build Illinois
17    Fund as  provided  in  the  preceding  paragraph  or  in  any
18    amendment  thereto hereafter enacted, the following specified
19    monthly  installment  of  the   amount   requested   in   the
20    certificate  of  the  Chairman  of  the Metropolitan Pier and
21    Exposition Authority provided  under  Section  8.25f  of  the
22    State  Finance  Act, but not in excess of the sums designated
23    as "Total Deposit", shall be deposited in the aggregate  from
24    collections  under Section 9 of the Use Tax Act, Section 9 of
25    the Service Use Tax Act, Section 9 of the Service  Occupation
26    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
27    into the  McCormick  Place  Expansion  Project  Fund  in  the
28    specified fiscal years.
29             Fiscal Year                   Total Deposit
30                 1993                            $0
31                 1994                        53,000,000
32                 1995                        58,000,000
33                 1996                        61,000,000
34                 1997                        64,000,000
 
                            -19-               LRB9110257SMdv
 1                 1998                        68,000,000
 2                 1999                        71,000,000
 3                 2000                        75,000,000
 4                 2001                        80,000,000
 5                 2002                        84,000,000
 6                 2003                        89,000,000
 7                 2004                        93,000,000
 8                 2005                        97,000,000
 9                 2006                       102,000,000
10                 2007                       108,000,000
11                 2008                       115,000,000
12                 2009                       120,000,000
13                 2010                       126,000,000
14                 2011                       132,000,000
15                 2012                       138,000,000
16                 2013 and                   145,000,000
17        each fiscal year
18        thereafter that bonds
19        are outstanding under
20        Section 13.2 of the
21        Metropolitan Pier and
22        Exposition Authority
23        Act, but not after fiscal year 2029.
24        Beginning  July 20, 1993 and in each month of each fiscal
25    year thereafter, one-eighth of the amount  requested  in  the
26    certificate  of  the  Chairman  of  the Metropolitan Pier and
27    Exposition Authority for that fiscal year,  less  the  amount
28    deposited  into the McCormick Place Expansion Project Fund by
29    the State Treasurer in the respective month under  subsection
30    (g)  of  Section  13  of the Metropolitan Pier and Exposition
31    Authority Act, plus cumulative deficiencies in  the  deposits
32    required  under  this  Section for previous months and years,
33    shall be deposited into the McCormick Place Expansion Project
34    Fund, until the full amount requested for  the  fiscal  year,
 
                            -20-               LRB9110257SMdv
 1    but  not  in  excess  of the amount specified above as "Total
 2    Deposit", has been deposited.
 3        Subject to payment of amounts  into  the  Build  Illinois
 4    Fund  and the McCormick Place Expansion Project Fund pursuant
 5    to the preceding  paragraphs  or  in  any  amendment  thereto
 6    hereafter  enacted,  each month the Department shall pay into
 7    the Local Government Distributive Fund .4% of the net revenue
 8    realized for the preceding month from the 5% general rate, or
 9    .4% of 80% of the net  revenue  realized  for  the  preceding
10    month from the 6.25% general rate, as the case may be, on the
11    selling  price  of  tangible  personal  property which amount
12    shall, subject to appropriation, be distributed  as  provided
13    in Section 2 of the State Revenue Sharing Act. No payments or
14    distributions pursuant to this paragraph shall be made if the
15    tax  imposed  by  this  Act  on  photoprocessing  products is
16    declared unconstitutional, or if the proceeds from  such  tax
17    are unavailable for distribution because of litigation.
18        Subject  to  payment  of  amounts into the Build Illinois
19    Fund, the McCormick Place Expansion  Project  Fund,  and  the
20    Local  Government Distributive Fund pursuant to the preceding
21    paragraphs or in any amendments  thereto  hereafter  enacted,
22    beginning  July  1, 1993, the Department shall each month pay
23    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
24    revenue  realized  for  the  preceding  month  from the 6.25%
25    general rate  on  the  selling  price  of  tangible  personal
26    property.
27        Of the remainder of the moneys received by the Department
28    pursuant  to  this  Act,  75%  thereof shall be paid into the
29    State Treasury and 25% shall be reserved in a special account
30    and used only for the transfer to the Common School  Fund  as
31    part of the monthly transfer from the General Revenue Fund in
32    accordance with Section 8a of the State Finance Act.
33        As  soon  as  possible after the first day of each month,
34    upon  certification  of  the  Department  of   Revenue,   the
 
                            -21-               LRB9110257SMdv
 1    Comptroller  shall  order transferred and the Treasurer shall
 2    transfer from the General Revenue Fund to the Motor Fuel  Tax
 3    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
 4    realized under this  Act  for  the  second  preceding  month.
 5    Beginning  April 1, 2000, this transfer is no longer required
 6    and shall not be made.
 7        Net revenue realized for a month  shall  be  the  revenue
 8    collected  by the State pursuant to this Act, less the amount
 9    paid out during  that  month  as  refunds  to  taxpayers  for
10    overpayment of liability.
11        For  greater simplicity of administration, manufacturers,
12    importers and wholesalers whose products are sold  at  retail
13    in Illinois by numerous retailers, and who wish to do so, may
14    assume  the  responsibility  for accounting and paying to the
15    Department all tax accruing under this Act  with  respect  to
16    such  sales,  if  the  retailers who are affected do not make
17    written objection to the Department to this arrangement.
18    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
19    91-37,  eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,   eff.
20    7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)

21        Section  10.   The  Service  Use  Tax  Act  is amended by
22    changing Sections 3-10 and 9 as follows:

23        (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
24        Sec. 3-10.  Rate of tax.  Unless  otherwise  provided  in
25    this  Section,  the tax imposed by this Act is at the rate of
26    6.25% of the selling  price  of  tangible  personal  property
27    transferred  as  an incident to the sale of service, but, for
28    the purpose of computing this tax,  in  no  event  shall  the
29    selling  price be less than the cost price of the property to
30    the serviceman.
31        With respect to motor fuel, as defined in Section 1.1  of
32    the  Motor  Fuel  Tax Law, and gasohol, as defined in Section
 
                            -22-               LRB9110257SMdv
 1    3-40 of the Use Tax Act, the tax is imposed at  the  rate  of
 2    1.25%.    If,  however, the aggregate tax revenues from motor
 3    fuel and gasohol under the Use Tax Act, the Service  Use  Tax
 4    Act,  the  Service  Occupation  Tax  Act,  and the Retailers'
 5    Occupation Tax Act during the period  from  October  1,  2003
 6    through September 30, 2004 are not at least 15% more than the
 7    aggregate  tax  revenues  from  motor  fuel and gasohol under
 8    those Acts during the period from  October  1,  2000  through
 9    September 30, 2001, then beginning January 1, 2005 the tax is
10    imposed on motor fuel and gasohol at the 6.25% general rate.
11        With  respect  to gasohol, as defined in the Use Tax Act,
12    the tax imposed by this Act applies to  70%  of  the  selling
13    price  of  property transferred as an incident to the sale of
14    service on or after January 1, 1990, and before July 1, 2003,
15    and to 100% of the selling price thereafter.
16        At the election of any  registered  serviceman  made  for
17    each  fiscal  year,  sales  of service in which the aggregate
18    annual cost price of tangible personal  property  transferred
19    as  an  incident to the sales of service is less than 35%, or
20    75% in the case of servicemen transferring prescription drugs
21    or servicemen engaged in  graphic  arts  production,  of  the
22    aggregate  annual  total  gross  receipts  from  all sales of
23    service, the tax imposed by this Act shall be  based  on  the
24    serviceman's  cost  price  of  the tangible personal property
25    transferred as an incident to the sale of those services.
26        The tax shall be imposed  at  the  rate  of  1%  on  food
27    prepared  for  immediate consumption and transferred incident
28    to a sale of service subject  to  this  Act  or  the  Service
29    Occupation  Tax  Act by an entity licensed under the Hospital
30    Licensing Act, the Nursing Home Care Act, or the  Child  Care
31    Act of 1969.  The tax shall also be imposed at the rate of 1%
32    on  food for human consumption that is to be consumed off the
33    premises where it is sold (other  than  alcoholic  beverages,
34    soft  drinks,  and  food that has been prepared for immediate
 
                            -23-               LRB9110257SMdv
 1    consumption and is not otherwise included in this  paragraph)
 2    and   prescription   and  nonprescription  medicines,  drugs,
 3    medical appliances, modifications to a motor vehicle for  the
 4    purpose  of  rendering  it  usable  by a disabled person, and
 5    insulin, urine testing materials, syringes, and needles  used
 6    by  diabetics,  for  human  use.  For  the  purposes  of this
 7    Section, the term "soft drinks" means any complete, finished,
 8    ready-to-use, non-alcoholic drink, whether carbonated or not,
 9    including but not limited to soda water, cola,  fruit  juice,
10    vegetable juice, carbonated water, and all other preparations
11    commonly known as soft drinks of whatever kind or description
12    that  are  contained  in  any  closed  or sealed bottle, can,
13    carton, or container, regardless of size.  "Soft drinks" does
14    not  include  coffee,  tea,  non-carbonated   water,   infant
15    formula,  milk  or  milk  products  as defined in the Grade A
16    Pasteurized Milk and Milk Products Act, or drinks  containing
17    50% or more natural fruit or vegetable juice.
18        Notwithstanding  any  other provisions of this Act, "food
19    for human consumption that is to be consumed off the premises
20    where it is sold" includes all food sold  through  a  vending
21    machine,  except  soft  drinks  and  food  products  that are
22    dispensed hot from  a  vending  machine,  regardless  of  the
23    location of the vending machine.
24        If  the  property  that  is acquired from a serviceman is
25    acquired outside Illinois and used  outside  Illinois  before
26    being  brought  to Illinois for use here and is taxable under
27    this Act, the "selling price" on which the  tax  is  computed
28    shall  be  reduced  by an amount that represents a reasonable
29    allowance  for  depreciation  for   the   period   of   prior
30    out-of-state use.
31    (Source: P.A.  90-605,  eff.  6-30-98;  90-606, eff. 6-30-98;
32    91-51, eff. 6-30-99; 91-541, eff. 8-13-99.)

33        (35 ILCS 110/9) (from Ch. 120, par. 439.39)
 
                            -24-               LRB9110257SMdv
 1        Sec.  9.  Each  serviceman  required  or  authorized   to
 2    collect  the  tax  herein imposed shall pay to the Department
 3    the amount of such tax (except as otherwise provided) at  the
 4    time  when  he  is required to file his return for the period
 5    during which such tax was collected, less a discount of  2.1%
 6    prior  to  January  1, 1990 and 1.75% on and after January 1,
 7    1990, or $5 per calendar year, whichever is greater, which is
 8    allowed to reimburse the serviceman for expenses incurred  in
 9    collecting  the  tax,  keeping  records, preparing and filing
10    returns,  remitting  the  tax  and  supplying  data  to   the
11    Department  on request. A serviceman need not remit that part
12    of any tax collected by him to the extent that he is required
13    to pay and does pay the tax imposed by the Service Occupation
14    Tax Act with respect to his sale  of  service  involving  the
15    incidental transfer by him of the same property.
16        Except  as  provided  hereinafter  in this Section, on or
17    before  the  twentieth  day  of  each  calendar  month,  such
18    serviceman shall file a return  for  the  preceding  calendar
19    month  in accordance with reasonable Rules and Regulations to
20    be promulgated by the Department. Such return shall be  filed
21    on a form prescribed by the Department and shall contain such
22    information as the Department may reasonably require.
23        The  Department  may  require  returns  to  be filed on a
24    quarterly basis.  If so required, a return for each  calendar
25    quarter  shall be filed on or before the twentieth day of the
26    calendar month following the end of  such  calendar  quarter.
27    The taxpayer shall also file a return with the Department for
28    each  of the first two months of each calendar quarter, on or
29    before the twentieth day of  the  following  calendar  month,
30    stating:
31             1.  The name of the seller;
32             2.  The  address  of the principal place of business
33        from which he engages in business as a serviceman in this
34        State;
 
                            -25-               LRB9110257SMdv
 1             3.  The total amount of taxable receipts received by
 2        him  during  the  preceding  calendar  month,   including
 3        receipts  from  charge  and  time  sales,  but  less  all
 4        deductions allowed by law;
 5             4.  The  amount  of credit provided in Section 2d of
 6        this Act;
 7             5.  The amount of tax due;
 8             5-5.  The signature of the taxpayer; and
 9             6.  Such  other  reasonable   information   as   the
10        Department may require.
11        If a taxpayer fails to sign a return within 30 days after
12    the proper notice and demand for signature by the Department,
13    the  return shall be considered valid and any amount shown to
14    be due on the return shall be deemed assessed.
15        Beginning October 1, 1993, a taxpayer who has an  average
16    monthly  tax  liability  of  $150,000  or more shall make all
17    payments required by rules of the  Department  by  electronic
18    funds  transfer.   Beginning  October 1, 1994, a taxpayer who
19    has an average monthly tax  liability  of  $100,000  or  more
20    shall  make  all payments required by rules of the Department
21    by electronic funds transfer.  Beginning October 1,  1995,  a
22    taxpayer  who has an average monthly tax liability of $50,000
23    or more shall make all payments  required  by  rules  of  the
24    Department by electronic funds transfer. Beginning October 1,
25    2000,  a taxpayer who has an annual tax liability of $200,000
26    or more shall make all payments  required  by  rules  of  the
27    Department  by  electronic  funds transfer.  The term "annual
28    tax liability" shall be the sum of the taxpayer's liabilities
29    under  this  Act,  and  under  all  other  State  and   local
30    occupation  and  use tax laws administered by the Department,
31    for the  immediately  preceding  calendar  year.    The  term
32    "average   monthly  tax  liability"  means  the  sum  of  the
33    taxpayer's liabilities under this Act, and  under  all  other
34    State  and  local occupation and use tax laws administered by
 
                            -26-               LRB9110257SMdv
 1    the Department, for the immediately preceding  calendar  year
 2    divided by 12.
 3        Before  August  1  of  each  year  beginning in 1993, the
 4    Department  shall  notify  all  taxpayers  required  to  make
 5    payments by electronic funds transfer. All taxpayers required
 6    to make payments by  electronic  funds  transfer  shall  make
 7    those payments for a minimum of one year beginning on October
 8    1.
 9        Any  taxpayer not required to make payments by electronic
10    funds transfer may make payments by electronic funds transfer
11    with the permission of the Department.
12        All taxpayers required  to  make  payment  by  electronic
13    funds  transfer  and  any taxpayers authorized to voluntarily
14    make payments by electronic funds transfer shall  make  those
15    payments in the manner authorized by the Department.
16        The Department shall adopt such rules as are necessary to
17    effectuate  a  program  of  electronic funds transfer and the
18    requirements of this Section.
19        If the serviceman is otherwise required to file a monthly
20    return and if the serviceman's average monthly tax  liability
21    to  the  Department  does not exceed $200, the Department may
22    authorize his returns to be filed on a quarter annual  basis,
23    with  the  return  for January, February and March of a given
24    year being due by April 20 of such year; with the return  for
25    April,  May  and June of a given year being due by July 20 of
26    such year; with the return for July, August and September  of
27    a  given  year being due by October 20 of such year, and with
28    the return for October, November and December of a given year
29    being due by January 20 of the following year.
30        If the serviceman is otherwise required to file a monthly
31    or quarterly return and if the serviceman's  average  monthly
32    tax  liability  to  the  Department  does not exceed $50, the
33    Department may authorize his returns to be filed on an annual
34    basis, with the return for a given year being due by  January
 
                            -27-               LRB9110257SMdv
 1    20 of the following year.
 2        Such  quarter  annual  and annual returns, as to form and
 3    substance, shall be  subject  to  the  same  requirements  as
 4    monthly returns.
 5        Notwithstanding   any   other   provision   in  this  Act
 6    concerning the time within which a serviceman  may  file  his
 7    return, in the case of any serviceman who ceases to engage in
 8    a  kind  of  business  which makes him responsible for filing
 9    returns under this Act, such serviceman shall  file  a  final
10    return  under  this  Act  with the Department not more than 1
11    month after discontinuing such business.
12        Where a serviceman collects the tax with respect  to  the
13    selling  price  of  property which he sells and the purchaser
14    thereafter returns such property and the  serviceman  refunds
15    the  selling  price thereof to the purchaser, such serviceman
16    shall also refund, to the purchaser,  the  tax  so  collected
17    from  the purchaser. When filing his return for the period in
18    which he refunds such tax to the  purchaser,  the  serviceman
19    may  deduct  the  amount of the tax so refunded by him to the
20    purchaser from any other Service Use Tax, Service  Occupation
21    Tax,   retailers'  occupation  tax  or  use  tax  which  such
22    serviceman may be required to pay or remit to the Department,
23    as shown by such return, provided that the amount of the  tax
24    to  be  deducted  shall  previously have been remitted to the
25    Department by such serviceman. If the  serviceman  shall  not
26    previously  have  remitted  the  amount  of  such  tax to the
27    Department, he shall be entitled to  no  deduction  hereunder
28    upon refunding such tax to the purchaser.
29        Any  serviceman  filing  a  return  hereunder  shall also
30    include the total tax upon  the  selling  price  of  tangible
31    personal  property purchased for use by him as an incident to
32    a sale of service, and such serviceman shall remit the amount
33    of such tax to the Department when filing such return.
34        If experience indicates such action  to  be  practicable,
 
                            -28-               LRB9110257SMdv
 1    the  Department  may  prescribe  and furnish a combination or
 2    joint return which will enable servicemen, who  are  required
 3    to   file  returns  hereunder  and  also  under  the  Service
 4    Occupation Tax Act, to furnish  all  the  return  information
 5    required by both Acts on the one form.
 6        Where   the   serviceman   has  more  than  one  business
 7    registered with the Department  under  separate  registration
 8    hereunder, such serviceman shall not file each return that is
 9    due   as   a  single  return  covering  all  such  registered
10    businesses, but shall file separate  returns  for  each  such
11    registered business.
12        Beginning  January  1,  1990,  each  month the Department
13    shall pay into the State and Local Tax Reform Fund, a special
14    fund in the State Treasury, the net revenue realized for  the
15    preceding  month  from  the 1% tax on sales of food for human
16    consumption which is to be consumed off the premises where it
17    is sold (other than alcoholic beverages, soft drinks and food
18    which  has  been  prepared  for  immediate  consumption)  and
19    prescription and nonprescription  medicines,  drugs,  medical
20    appliances and insulin, urine testing materials, syringes and
21    needles used by diabetics.
22        Beginning  November  1,  2000,  and  so  long as the rate
23    remains at 1.25%, each month the Department  shall  pay  into
24    the  County  and  Mass  Transit  District Fund 20% of the net
25    revenue realized for the preceding month from the 1.25%  rate
26    on the selling price of motor fuel and gasohol.
27        Beginning  January  1,  1990,  each  month the Department
28    shall pay into the State and Local Sales Tax Reform Fund  20%
29    of  the net revenue realized for the preceding month from the
30    6.25%  general  rate  on  transfers  of   tangible   personal
31    property,  other  than  tangible  personal  property which is
32    purchased outside Illinois at  retail  from  a  retailer  and
33    which  is  titled  or registered by an agency of this State's
34    government.
 
                            -29-               LRB9110257SMdv
 1        Beginning November 1, 2000,  and  so  long  as  the  rate
 2    remains  at  1.25%,  each month the Department shall pay into
 3    the Local Government Tax Fund 80% of the net revenue realized
 4    for the preceding month from the 1.25% rate  on  the  selling
 5    price of motor fuel and gasohol.
 6        Of the remainder of the moneys received by the Department
 7    pursuant  to  this Act, (a)  1.75% thereof shall be paid into
 8    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
 9    and  on  and  after July 1, 1989, 3.8% thereof shall be  paid
10    into the Build Illinois Fund; provided, however, that  if  in
11    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
12    as  the case may be, of the moneys received by the Department
13    and required to be paid into the Build Illinois Fund pursuant
14    to Section 3 of the Retailers' Occupation Tax Act, Section  9
15    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
16    Section  9 of the Service Occupation Tax Act, such Acts being
17    hereinafter called the "Tax Acts" and such aggregate of  2.2%
18    or  3.8%,  as  the  case  may be, of moneys being hereinafter
19    called the "Tax Act Amount", and (2) the  amount  transferred
20    to the Build Illinois Fund from the State and Local Sales Tax
21    Reform  Fund  shall be less than the Annual Specified  Amount
22    (as defined in Section 3 of  the  Retailers'  Occupation  Tax
23    Act),  an amount equal to the difference shall be immediately
24    paid into the Build Illinois Fund from other moneys  received
25    by  the  Department  pursuant  to  the  Tax Acts; and further
26    provided, that if on the last business day of any  month  the
27    sum  of  (1) the Tax Act Amount required to be deposited into
28    the Build Illinois Bond Account in the  Build  Illinois  Fund
29    during  such month and (2) the amount transferred during such
30    month to the Build Illinois Fund from  the  State  and  Local
31    Sales  Tax  Reform Fund shall have been less than 1/12 of the
32    Annual Specified Amount, an amount equal  to  the  difference
33    shall  be  immediately paid into the Build Illinois Fund from
34    other moneys received by the Department pursuant to  the  Tax
 
                            -30-               LRB9110257SMdv
 1    Acts;  and,  further  provided,  that  in  no event shall the
 2    payments required  under  the  preceding  proviso  result  in
 3    aggregate  payments  into the Build Illinois Fund pursuant to
 4    this clause (b) for any fiscal year in excess of the  greater
 5    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
 6    for such fiscal year; and, further provided, that the amounts
 7    payable  into  the  Build Illinois Fund under this clause (b)
 8    shall be payable only until such time as the aggregate amount
 9    on deposit under each trust indenture securing  Bonds  issued
10    and  outstanding  pursuant  to the Build Illinois Bond Act is
11    sufficient, taking into account any future investment income,
12    to fully provide, in accordance with such indenture, for  the
13    defeasance of or the payment of the principal of, premium, if
14    any,  and interest on the Bonds secured by such indenture and
15    on any Bonds expected to be issued thereafter  and  all  fees
16    and  costs  payable with respect thereto, all as certified by
17    the Director of the Bureau of the Budget.   If  on  the  last
18    business  day  of  any  month  in which Bonds are outstanding
19    pursuant to the Build Illinois Bond Act, the aggregate of the
20    moneys deposited in the Build Illinois Bond  Account  in  the
21    Build  Illinois  Fund  in  such  month shall be less than the
22    amount required to be transferred  in  such  month  from  the
23    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
24    Retirement and Interest Fund pursuant to Section  13  of  the
25    Build  Illinois  Bond Act, an amount equal to such deficiency
26    shall be immediately paid from other moneys received  by  the
27    Department  pursuant  to  the  Tax Acts to the Build Illinois
28    Fund; provided, however, that any amounts paid to  the  Build
29    Illinois  Fund  in  any fiscal year pursuant to this sentence
30    shall be deemed to constitute payments pursuant to clause (b)
31    of  the  preceding  sentence  and  shall  reduce  the  amount
32    otherwise payable for such fiscal year pursuant to clause (b)
33    of the  preceding  sentence.   The  moneys  received  by  the
34    Department  pursuant to this Act and required to be deposited
 
                            -31-               LRB9110257SMdv
 1    into the Build Illinois Fund are subject to the pledge, claim
 2    and charge set forth in Section 12 of the Build Illinois Bond
 3    Act.
 4        Subject to payment of amounts  into  the  Build  Illinois
 5    Fund  as  provided  in  the  preceding  paragraph  or  in any
 6    amendment thereto hereafter enacted, the following  specified
 7    monthly   installment   of   the   amount  requested  in  the
 8    certificate of the Chairman  of  the  Metropolitan  Pier  and
 9    Exposition  Authority  provided  under  Section  8.25f of the
10    State Finance Act, but not in excess of the  sums  designated
11    as  "Total Deposit", shall be deposited in the aggregate from
12    collections under Section 9 of the Use Tax Act, Section 9  of
13    the  Service Use Tax Act, Section 9 of the Service Occupation
14    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
15    into  the  McCormick  Place  Expansion  Project  Fund  in the
16    specified fiscal years.
17          Fiscal Year                     Total Deposit
18             1993                                   $0
19             1994                           53,000,000
20             1995                           58,000,000
21             1996                           61,000,000
22             1997                           64,000,000
23             1998                           68,000,000
24             1999                           71,000,000
25             2000                           75,000,000
26             2001                           80,000,000
27             2002                           84,000,000
28             2003                           89,000,000
29             2004                           93,000,000
30             2005                           97,000,000
31             2006                           102,000,000
32             2007                           108,000,000
33             2008                           115,000,000
34             2009                           120,000,000
 
                            -32-               LRB9110257SMdv
 1             2010                           126,000,000
 2             2011                           132,000,000
 3             2012                           138,000,000
 4             2013 and                       145,000,000
 5        each fiscal year
 6        thereafter that bonds
 7        are outstanding under
 8        Section 13.2 of the
 9        Metropolitan Pier and
10        Exposition Authority Act,
11        but not after fiscal year 2029.
12        Beginning July 20, 1993 and in each month of each  fiscal
13    year  thereafter,  one-eighth  of the amount requested in the
14    certificate of the Chairman  of  the  Metropolitan  Pier  and
15    Exposition  Authority  for  that fiscal year, less the amount
16    deposited into the McCormick Place Expansion Project Fund  by
17    the  State Treasurer in the respective month under subsection
18    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
19    Authority  Act,  plus cumulative deficiencies in the deposits
20    required under this Section for previous  months  and  years,
21    shall be deposited into the McCormick Place Expansion Project
22    Fund,  until  the  full amount requested for the fiscal year,
23    but not in excess of the amount  specified  above  as  "Total
24    Deposit", has been deposited.
25        Subject  to  payment  of  amounts into the Build Illinois
26    Fund and the McCormick Place Expansion Project Fund  pursuant
27    to  the  preceding  paragraphs  or  in  any amendment thereto
28    hereafter enacted, each month the Department shall  pay  into
29    the  Local  Government  Distributive  Fund  0.4%  of  the net
30    revenue realized for the preceding month from the 5%  general
31    rate  or  0.4%  of  80%  of  the net revenue realized for the
32    preceding month from the 6.25% general rate, as the case  may
33    be,  on the selling price of tangible personal property which
34    amount shall, subject to  appropriation,  be  distributed  as
 
                            -33-               LRB9110257SMdv
 1    provided  in  Section  2 of the State Revenue Sharing Act. No
 2    payments or distributions pursuant to this paragraph shall be
 3    made if the tax imposed  by  this  Act  on  photo  processing
 4    products  is  declared  unconstitutional,  or if the proceeds
 5    from such tax are unavailable  for  distribution  because  of
 6    litigation.
 7        Subject  to  payment  of  amounts into the Build Illinois
 8    Fund, the McCormick Place Expansion  Project  Fund,  and  the
 9    Local  Government Distributive Fund pursuant to the preceding
10    paragraphs or in any amendments  thereto  hereafter  enacted,
11    beginning  July  1, 1993, the Department shall each month pay
12    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
13    revenue  realized  for  the  preceding  month  from the 6.25%
14    general rate  on  the  selling  price  of  tangible  personal
15    property.
16        All  remaining moneys received by the Department pursuant
17    to this Act shall be paid into the General  Revenue  Fund  of
18    the State Treasury.
19        As  soon  as  possible after the first day of each month,
20    upon  certification  of  the  Department  of   Revenue,   the
21    Comptroller  shall  order transferred and the Treasurer shall
22    transfer from the General Revenue Fund to the Motor Fuel  Tax
23    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
24    realized under this  Act  for  the  second  preceding  month.
25    Beginning  April 1, 2000, this transfer is no longer required
26    and shall not be made.
27        Net revenue realized for a month  shall  be  the  revenue
28    collected  by the State pursuant to this Act, less the amount
29    paid out during  that  month  as  refunds  to  taxpayers  for
30    overpayment of liability.
31    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
32    eff.  6-30-99;  91-101,  eff.  7-12-99; 91-541, eff. 8-13-99;
33    revised 9-27-99.)
 
                            -34-               LRB9110257SMdv
 1        Section 15.  The Service Occupation Tax Act is amended by
 2    changing Sections 3-10 and 9 as follows:

 3        (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
 4        Sec. 3-10. Rate of tax.   Unless  otherwise  provided  in
 5    this  Section,  the tax imposed by this Act is at the rate of
 6    6.25% of the "selling price", as defined in Section 2 of  the
 7    Service  Use Tax Act, of the tangible personal property.  For
 8    the purpose of computing this tax,  in  no  event  shall  the
 9    "selling price" be less than the cost price to the serviceman
10    of  the  tangible personal property transferred.  The selling
11    price of each item of tangible personal property  transferred
12    as  an  incident  of  a  sale  of  service  may be shown as a
13    distinct and separate item on the serviceman's billing to the
14    service customer. If the selling price is not so  shown,  the
15    selling  price of the tangible personal property is deemed to
16    be 50% of the serviceman's  entire  billing  to  the  service
17    customer.   When,  however, a serviceman contracts to design,
18    develop, and produce special order  machinery  or  equipment,
19    the   tax   imposed  by  this  Act  shall  be  based  on  the
20    serviceman's cost price of  the  tangible  personal  property
21    transferred incident to the completion of the contract.
22        With  respect to motor fuel, as defined in Section 1.1 of
23    the Motor Fuel Tax Law, and gasohol, as  defined  in  Section
24    3-40  of  the  Use Tax Act, the tax is imposed at the rate of
25    1.25%.  If, however, the aggregate tax  revenues  from  motor
26    fuel  and  gasohol under the Use Tax Act, the Service Use Tax
27    Act, the Service  Occupation  Tax  Act,  and  the  Retailers'
28    Occupation  Tax  Act  during  the period from October 1, 2003
29    through September 30, 2004 are not at least 15% more than the
30    aggregate tax revenues from  motor  fuel  and  gasohol  under
31    those  Acts  during  the  period from October 1, 2000 through
32    September 30, 2001, then beginning January 1, 2005 the tax is
33    imposed on motor fuel and gasohol at the 6.25% general rate.
 
                            -35-               LRB9110257SMdv
 1        With respect to gasohol, as defined in the Use  Tax  Act,
 2    the  tax  imposed  by this Act shall apply to 70% of the cost
 3    price of property transferred as an incident to the  sale  of
 4    service on or after January 1, 1990, and before July 1, 2003,
 5    and to 100% of the cost price thereafter.
 6        At  the  election  of  any registered serviceman made for
 7    each fiscal year, sales of service  in  which  the  aggregate
 8    annual  cost  price of tangible personal property transferred
 9    as an incident to the sales of service is less than  35%,  or
10    75% in the case of servicemen transferring prescription drugs
11    or  servicemen  engaged  in  graphic  arts production, of the
12    aggregate annual total  gross  receipts  from  all  sales  of
13    service,  the  tax  imposed by this Act shall be based on the
14    serviceman's cost price of  the  tangible  personal  property
15    transferred incident to the sale of those services.
16        The  tax  shall  be  imposed  at  the  rate of 1% on food
17    prepared for immediate consumption and  transferred  incident
18    to  a  sale  of  service  subject  to this Act or the Service
19    Occupation Tax Act by an entity licensed under  the  Hospital
20    Licensing  Act,  the Nursing Home Care Act, or the Child Care
21    Act of 1969.  The tax shall also be imposed at the rate of 1%
22    on food for human consumption that is to be consumed off  the
23    premises  where  it  is sold (other than alcoholic beverages,
24    soft drinks, and food that has been  prepared  for  immediate
25    consumption  and is not otherwise included in this paragraph)
26    and  prescription  and  nonprescription   medicines,   drugs,
27    medical  appliances, modifications to a motor vehicle for the
28    purpose of rendering it usable  by  a  disabled  person,  and
29    insulin,  urine testing materials, syringes, and needles used
30    by diabetics, for  human  use.   For  the  purposes  of  this
31    Section, the term "soft drinks" means any complete, finished,
32    ready-to-use, non-alcoholic drink, whether carbonated or not,
33    including  but  not limited to soda water, cola, fruit juice,
34    vegetable juice, carbonated water, and all other preparations
 
                            -36-               LRB9110257SMdv
 1    commonly known as soft drinks of whatever kind or description
 2    that are contained in any closed or sealed  can,  carton,  or
 3    container,  regardless  of  size.   "Soft  drinks"  does  not
 4    include  coffee,  tea,  non-carbonated water, infant formula,
 5    milk or milk products as defined in the Grade  A  Pasteurized
 6    Milk  and Milk Products Act, or drinks containing 50% or more
 7    natural fruit or vegetable juice.
 8        Notwithstanding any other provisions of this  Act,  "food
 9    for human consumption that is to be consumed off the premises
10    where  it  is  sold" includes all food sold through a vending
11    machine, except  soft  drinks  and  food  products  that  are
12    dispensed  hot  from  a  vending  machine,  regardless of the
13    location of the vending machine.
14    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
15    91-51, 6-30-99; 91-541, eff. 8-13-99.)

16        (35 ILCS 115/9) (from Ch. 120, par. 439.109)
17        Sec.  9.   Each  serviceman  required  or  authorized  to
18    collect  the  tax  herein imposed shall pay to the Department
19    the amount of such tax at the time when  he  is  required  to
20    file  his  return  for  the  period during which such tax was
21    collectible, less a discount of  2.1%  prior  to  January  1,
22    1990,  and  1.75%  on  and  after  January 1, 1990, or $5 per
23    calendar year, whichever is  greater,  which  is  allowed  to
24    reimburse  the serviceman for expenses incurred in collecting
25    the tax,  keeping  records,  preparing  and  filing  returns,
26    remitting  the  tax  and  supplying data to the Department on
27    request.
28        Where such tangible personal property  is  sold  under  a
29    conditional  sales  contract, or under any other form of sale
30    wherein the payment of the principal sum, or a part  thereof,
31    is  extended  beyond  the  close  of the period for which the
32    return is filed, the serviceman, in collecting  the  tax  may
33    collect,  for each tax return period, only the tax applicable
 
                            -37-               LRB9110257SMdv
 1    to the part of the selling  price  actually  received  during
 2    such tax return period.
 3        Except  as  provided  hereinafter  in this Section, on or
 4    before  the  twentieth  day  of  each  calendar  month,  such
 5    serviceman shall file a return  for  the  preceding  calendar
 6    month  in accordance with reasonable rules and regulations to
 7    be promulgated by the Department of  Revenue.    Such  return
 8    shall  be  filed  on  a form prescribed by the Department and
 9    shall  contain  such  information  as  the   Department   may
10    reasonably require.
11        The  Department  may  require  returns  to  be filed on a
12    quarterly basis.  If so required, a return for each  calendar
13    quarter  shall be filed on or before the twentieth day of the
14    calendar month following the end of  such  calendar  quarter.
15    The taxpayer shall also file a return with the Department for
16    each  of the first two months of each calendar quarter, on or
17    before the twentieth day of  the  following  calendar  month,
18    stating:
19             1.  The name of the seller;
20             2.  The  address  of the principal place of business
21        from which he engages in business as a serviceman in this
22        State;
23             3.  The total amount of taxable receipts received by
24        him  during  the  preceding  calendar  month,   including
25        receipts  from  charge  and  time  sales,  but  less  all
26        deductions allowed by law;
27             4.  The  amount  of credit provided in Section 2d of
28        this Act;
29             5.  The amount of tax due;
30             5-5.  The signature of the taxpayer; and
31             6.  Such  other  reasonable   information   as   the
32        Department may require.
33        If a taxpayer fails to sign a return within 30 days after
34    the proper notice and demand for signature by the Department,
 
                            -38-               LRB9110257SMdv
 1    the  return shall be considered valid and any amount shown to
 2    be due on the return shall be deemed assessed.
 3        A serviceman may accept a Manufacturer's Purchase  Credit
 4    certification from a purchaser in satisfaction of Service Use
 5    Tax as provided in Section 3-70 of the Service Use Tax Act if
 6    the  purchaser  provides  the  appropriate  documentation  as
 7    required  by  Section  3-70  of  the  Service Use Tax Act.  A
 8    Manufacturer's Purchase Credit certification, accepted  by  a
 9    serviceman as provided in Section 3-70 of the Service Use Tax
10    Act,  may  be  used  by  that  serviceman  to satisfy Service
11    Occupation  Tax  liability  in  the  amount  claimed  in  the
12    certification, not to exceed 6.25% of the receipts subject to
13    tax from a qualifying purchase.
14        If the serviceman's average monthly tax liability to  the
15    Department does not exceed $200, the Department may authorize
16    his  returns  to be filed on a quarter annual basis, with the
17    return for January, February and March of a given year  being
18    due  by April 20 of such year; with the return for April, May
19    and June of a given year being due by July 20 of  such  year;
20    with  the  return  for  July, August and September of a given
21    year being due by October 20  of  such  year,  and  with  the
22    return  for  October,  November  and December of a given year
23    being due by January 20 of the following year.
24        If the serviceman's average monthly tax liability to  the
25    Department  does not exceed $50, the Department may authorize
26    his returns to be filed on an annual basis, with  the  return
27    for  a  given  year  being due by January 20 of the following
28    year.
29        Such quarter annual and annual returns, as  to  form  and
30    substance,  shall  be  subject  to  the  same requirements as
31    monthly returns.
32        Notwithstanding  any  other   provision   in   this   Act
33    concerning  the  time  within which a serviceman may file his
34    return, in the case of any serviceman who ceases to engage in
 
                            -39-               LRB9110257SMdv
 1    a kind of business which makes  him  responsible  for  filing
 2    returns  under  this  Act, such serviceman shall file a final
 3    return under this Act with the Department  not  more  than  1
 4    month after discontinuing such business.
 5        Beginning  October 1, 1993, a taxpayer who has an average
 6    monthly tax liability of $150,000  or  more  shall  make  all
 7    payments  required  by  rules of the Department by electronic
 8    funds transfer.  Beginning October 1, 1994,  a  taxpayer  who
 9    has  an  average  monthly  tax  liability of $100,000 or more
10    shall make all payments required by rules of  the  Department
11    by  electronic  funds transfer.  Beginning October 1, 1995, a
12    taxpayer who has an average monthly tax liability of  $50,000
13    or  more  shall  make  all  payments required by rules of the
14    Department by electronic funds transfer.   Beginning  October
15    1,  2000,  a  taxpayer  who  has  an  annual tax liability of
16    $200,000 or more shall make all payments required by rules of
17    the  Department  by  electronic  funds  transfer.   The  term
18    "annual tax liability" shall be the  sum  of  the  taxpayer's
19    liabilities  under  this  Act,  and under all other State and
20    local  occupation  and  use  tax  laws  administered  by  the
21    Department, for the immediately preceding calendar year.  The
22    term  "average  monthly  tax  liability" means the sum of the
23    taxpayer's liabilities under this Act, and  under  all  other
24    State  and  local occupation and use tax laws administered by
25    the Department, for the immediately preceding  calendar  year
26    divided by 12.
27        Before  August  1  of  each  year  beginning in 1993, the
28    Department  shall  notify  all  taxpayers  required  to  make
29    payments  by  electronic  funds  transfer.    All   taxpayers
30    required  to make payments by electronic funds transfer shall
31    make those payments for a minimum of one  year  beginning  on
32    October 1.
33        Any  taxpayer not required to make payments by electronic
34    funds transfer may make payments by electronic funds transfer
 
                            -40-               LRB9110257SMdv
 1    with the permission of the Department.
 2        All taxpayers required  to  make  payment  by  electronic
 3    funds  transfer  and  any taxpayers authorized to voluntarily
 4    make payments by electronic funds transfer shall  make  those
 5    payments in the manner authorized by the Department.
 6        The Department shall adopt such rules as are necessary to
 7    effectuate  a  program  of  electronic funds transfer and the
 8    requirements of this Section.
 9        Where a serviceman collects the tax with respect  to  the
10    selling  price  of  tangible personal property which he sells
11    and the purchaser thereafter returns such  tangible  personal
12    property and the serviceman refunds the selling price thereof
13    to  the  purchaser, such serviceman shall also refund, to the
14    purchaser, the tax so collected  from  the  purchaser.   When
15    filing his return for the period in which he refunds such tax
16    to the purchaser, the serviceman may deduct the amount of the
17    tax  so  refunded  by  him  to  the  purchaser from any other
18    Service  Occupation  Tax,   Service   Use   Tax,   Retailers'
19    Occupation  Tax  or  Use  Tax  which  such  serviceman may be
20    required to pay or remit to the Department, as shown by  such
21    return,  provided  that  the amount of the tax to be deducted
22    shall previously have been remitted to the Department by such
23    serviceman.  If the  serviceman  shall  not  previously  have
24    remitted  the  amount of such tax to the Department, he shall
25    be entitled to no deduction hereunder upon refunding such tax
26    to the purchaser.
27        If experience indicates such action  to  be  practicable,
28    the  Department  may  prescribe  and furnish a combination or
29    joint return which will enable servicemen, who  are  required
30    to  file  returns  hereunder  and  also  under the Retailers'
31    Occupation Tax Act, the Use Tax Act or the  Service  Use  Tax
32    Act,  to  furnish  all the return information required by all
33    said Acts on the one form.
34        Where  the  serviceman  has  more   than   one   business
 
                            -41-               LRB9110257SMdv
 1    registered  with  the Department under separate registrations
 2    hereunder, such serviceman shall file  separate  returns  for
 3    each registered business.
 4        Beginning  January  1,  1990,  each  month the Department
 5    shall pay into the Local  Government  Tax  Fund  the  revenue
 6    realized  for the preceding month from the 1% tax on sales of
 7    food for human consumption which is to be  consumed  off  the
 8    premises  where  it  is sold (other than alcoholic beverages,
 9    soft drinks and food which has been  prepared  for  immediate
10    consumption)  and prescription and nonprescription medicines,
11    drugs,  medical  appliances  and   insulin,   urine   testing
12    materials, syringes and needles used by diabetics.
13        Beginning  January  1,  1990,  each  month the Department
14    shall pay into the County and Mass Transit District  Fund  4%
15    of  the  revenue  realized  for  the preceding month from the
16    6.25% general rate.
17        Beginning November 1, 2000,  and  so  long  as  the  rate
18    remains  at  1.25%,  each month the Department shall pay into
19    the County and Mass Transit District  Fund  20%  of  the  net
20    revenue  realized for the preceding month from the 1.25% rate
21    on the selling price of motor fuel and gasohol.
22        Beginning January 1,  1990,  each  month  the  Department
23    shall  pay  into  the  Local  Government  Tax Fund 16% of the
24    revenue realized for  the  preceding  month  from  the  6.25%
25    general rate on transfers of tangible personal property.
26        Beginning  November  1,  2000,  and  so  long as the rate
27    remains at 1.25%, each month the Department  shall  pay  into
28    the Local Government Tax Fund 80% of the net revenue realized
29    for  the  preceding  month from the 1.25% rate on the selling
30    price of motor fuel and gasohol.
31        Of the remainder of the moneys received by the Department
32    pursuant to this Act, (a) 1.75% thereof shall  be  paid  into
33    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
34    and on and after July 1, 1989, 3.8%  thereof  shall  be  paid
 
                            -42-               LRB9110257SMdv
 1    into  the  Build Illinois Fund; provided, however, that if in
 2    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
 3    as the case may be, of the moneys received by the  Department
 4    and required to be paid into the Build Illinois Fund pursuant
 5    to  Section 3 of the Retailers' Occupation Tax Act, Section 9
 6    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
 7    Section 9 of the Service Occupation Tax Act, such Acts  being
 8    hereinafter  called the "Tax Acts" and such aggregate of 2.2%
 9    or 3.8%, as the case may  be,  of  moneys  being  hereinafter
10    called  the  "Tax Act Amount", and (2) the amount transferred
11    to the Build Illinois Fund from the State and Local Sales Tax
12    Reform Fund shall be less than the  Annual  Specified  Amount
13    (as  defined  in  Section  3 of the Retailers' Occupation Tax
14    Act), an amount equal to the difference shall be  immediately
15    paid  into the Build Illinois Fund from other moneys received
16    by the Department pursuant  to  the  Tax  Acts;  and  further
17    provided,  that  if on the last business day of any month the
18    sum of (1) the Tax Act Amount required to be  deposited  into
19    the  Build Illinois Account in the Build Illinois Fund during
20    such month and (2) the amount transferred during  such  month
21    to the Build Illinois Fund from the State and Local Sales Tax
22    Reform  Fund  shall  have  been  less than 1/12 of the Annual
23    Specified Amount, an amount equal to the difference shall  be
24    immediately  paid  into  the  Build  Illinois Fund from other
25    moneys received by the Department pursuant to the  Tax  Acts;
26    and,  further  provided,  that in no event shall the payments
27    required under the  preceding  proviso  result  in  aggregate
28    payments into the Build Illinois Fund pursuant to this clause
29    (b)  for  any fiscal year in excess of the greater of (i) the
30    Tax Act Amount or (ii) the Annual Specified Amount  for  such
31    fiscal  year; and, further provided, that the amounts payable
32    into the Build Illinois Fund under this clause (b)  shall  be
33    payable  only  until  such  time  as  the aggregate amount on
34    deposit under each trust indenture securing Bonds issued  and
 
                            -43-               LRB9110257SMdv
 1    outstanding  pursuant  to  the  Build  Illinois  Bond  Act is
 2    sufficient, taking into account any future investment income,
 3    to fully provide, in accordance with such indenture, for  the
 4    defeasance of or the payment of the principal of, premium, if
 5    any,  and interest on the Bonds secured by such indenture and
 6    on any Bonds expected to be issued thereafter  and  all  fees
 7    and  costs  payable with respect thereto, all as certified by
 8    the Director of the Bureau of the Budget.   If  on  the  last
 9    business  day  of  any  month  in which Bonds are outstanding
10    pursuant to the Build Illinois Bond Act, the aggregate of the
11    moneys deposited in the Build Illinois Bond  Account  in  the
12    Build  Illinois  Fund  in  such  month shall be less than the
13    amount required to be transferred  in  such  month  from  the
14    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
15    Retirement and Interest Fund pursuant to Section  13  of  the
16    Build  Illinois  Bond Act, an amount equal to such deficiency
17    shall be immediately paid from other moneys received  by  the
18    Department  pursuant  to  the  Tax Acts to the Build Illinois
19    Fund; provided, however, that any amounts paid to  the  Build
20    Illinois  Fund  in  any fiscal year pursuant to this sentence
21    shall be deemed to constitute payments pursuant to clause (b)
22    of  the  preceding  sentence  and  shall  reduce  the  amount
23    otherwise payable for such fiscal year pursuant to clause (b)
24    of the  preceding  sentence.   The  moneys  received  by  the
25    Department  pursuant to this Act and required to be deposited
26    into the Build Illinois Fund are subject to the pledge, claim
27    and charge set forth in Section 12 of the Build Illinois Bond
28    Act.
29        Subject to payment of amounts  into  the  Build  Illinois
30    Fund  as  provided  in  the  preceding  paragraph  or  in any
31    amendment thereto hereafter enacted, the following  specified
32    monthly   installment   of   the   amount  requested  in  the
33    certificate of the Chairman  of  the  Metropolitan  Pier  and
34    Exposition  Authority  provided  under  Section  8.25f of the
 
                            -44-               LRB9110257SMdv
 1    State Finance Act, but not in excess of the  sums  designated
 2    as  "Total Deposit", shall be deposited in the aggregate from
 3    collections under Section 9 of the Use Tax Act, Section 9  of
 4    the  Service Use Tax Act, Section 9 of the Service Occupation
 5    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
 6    into  the  McCormick  Place  Expansion  Project  Fund  in the
 7    specified fiscal years.
 8             Fiscal Year                   Total Deposit
 9                 1993                            $0
10                 1994                        53,000,000
11                 1995                        58,000,000
12                 1996                        61,000,000
13                 1997                        64,000,000
14                 1998                        68,000,000
15                 1999                        71,000,000
16                 2000                        75,000,000
17                 2001                        80,000,000
18                 2002                        84,000,000
19                 2003                        89,000,000
20                 2004                        93,000,000
21                 2005                        97,000,000
22                 2006                       102,000,000
23                 2007                       108,000,000
24                 2008                       115,000,000
25                 2009                       120,000,000
26                 2010                       126,000,000
27                 2011                       132,000,000
28                 2012                       138,000,000
29                 2013 and                   145,000,000
30        each fiscal year
31        thereafter that bonds
32        are outstanding under
33        Section 13.2 of the
34        Metropolitan Pier and
 
                            -45-               LRB9110257SMdv
 1        Exposition Authority
 2        Act, but not after fiscal year 2029.
 3        Beginning July 20, 1993 and in each month of each  fiscal
 4    year  thereafter,  one-eighth  of the amount requested in the
 5    certificate of the Chairman  of  the  Metropolitan  Pier  and
 6    Exposition  Authority  for  that fiscal year, less the amount
 7    deposited into the McCormick Place Expansion Project Fund  by
 8    the  State Treasurer in the respective month under subsection
 9    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
10    Authority  Act,  plus cumulative deficiencies in the deposits
11    required under this Section for previous  months  and  years,
12    shall be deposited into the McCormick Place Expansion Project
13    Fund,  until  the  full amount requested for the fiscal year,
14    but not in excess of the amount  specified  above  as  "Total
15    Deposit", has been deposited.
16        Subject  to  payment  of  amounts into the Build Illinois
17    Fund and the McCormick Place Expansion Project Fund  pursuant
18    to  the  preceding  paragraphs  or  in  any amendment thereto
19    hereafter enacted, each month the Department shall  pay  into
20    the  Local  Government  Distributive  Fund  0.4%  of  the net
21    revenue realized for the preceding month from the 5%  general
22    rate  or  0.4%  of  80%  of  the net revenue realized for the
23    preceding month from the 6.25% general rate, as the case  may
24    be,  on the selling price of tangible personal property which
25    amount shall, subject to  appropriation,  be  distributed  as
26    provided  in  Section 2 of the State Revenue Sharing Act.  No
27    payments or distributions pursuant to this paragraph shall be
28    made if the  tax  imposed  by  this  Act  on  photoprocessing
29    products  is  declared  unconstitutional,  or if the proceeds
30    from such tax are unavailable  for  distribution  because  of
31    litigation.
32        Subject  to  payment  of  amounts into the Build Illinois
33    Fund, the McCormick Place Expansion  Project  Fund,  and  the
34    Local  Government Distributive Fund pursuant to the preceding
 
                            -46-               LRB9110257SMdv
 1    paragraphs or in any amendments  thereto  hereafter  enacted,
 2    beginning  July  1, 1993, the Department shall each month pay
 3    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
 4    revenue  realized  for  the  preceding  month  from the 6.25%
 5    general rate  on  the  selling  price  of  tangible  personal
 6    property.
 7        Remaining  moneys  received by the Department pursuant to
 8    this Act shall be paid into the General Revenue Fund  of  the
 9    State Treasury.
10        The  Department  may,  upon  separate written notice to a
11    taxpayer, require the taxpayer to prepare and file  with  the
12    Department  on a form prescribed by the Department within not
13    less than 60 days after  receipt  of  the  notice  an  annual
14    information  return for the tax year specified in the notice.
15    Such  annual  return  to  the  Department  shall  include   a
16    statement  of  gross receipts as shown by the taxpayer's last
17    Federal income tax return.  If  the  total  receipts  of  the
18    business  as reported in the Federal income tax return do not
19    agree with the gross receipts reported to the  Department  of
20    Revenue for the same period, the taxpayer shall attach to his
21    annual  return  a  schedule showing a reconciliation of the 2
22    amounts and the reasons for the difference.   The  taxpayer's
23    annual  return to the Department shall also disclose the cost
24    of goods sold by the taxpayer during the year covered by such
25    return, opening and closing inventories  of  such  goods  for
26    such  year, cost of goods used from stock or taken from stock
27    and given away by the taxpayer during  such  year,  pay  roll
28    information  of  the taxpayer's business during such year and
29    any additional reasonable information  which  the  Department
30    deems  would  be  helpful  in determining the accuracy of the
31    monthly, quarterly or annual returns filed by  such  taxpayer
32    as hereinbefore provided for in this Section.
33        If the annual information return required by this Section
34    is  not  filed  when  and  as required, the taxpayer shall be
 
                            -47-               LRB9110257SMdv
 1    liable as follows:
 2             (i)  Until January 1, 1994, the  taxpayer  shall  be
 3        liable  for  a  penalty equal to 1/6 of 1% of the tax due
 4        from such taxpayer under this Act during the period to be
 5        covered by the annual return for each month  or  fraction
 6        of  a  month  until such return is filed as required, the
 7        penalty to be assessed and collected in the  same  manner
 8        as any other penalty provided for in this Act.
 9             (ii)  On  and  after  January  1, 1994, the taxpayer
10        shall be liable for a penalty as described in Section 3-4
11        of the Uniform Penalty and Interest Act.
12        The chief executive officer, proprietor, owner or highest
13    ranking manager shall sign the annual return to  certify  the
14    accuracy  of  the  information contained therein.  Any person
15    who willfully signs the annual  return  containing  false  or
16    inaccurate   information  shall  be  guilty  of  perjury  and
17    punished accordingly.  The annual return form  prescribed  by
18    the  Department  shall  include  a  warning  that  the person
19    signing the return may be liable for perjury.
20        The foregoing portion  of  this  Section  concerning  the
21    filing  of  an annual information return shall not apply to a
22    serviceman who is not required to file an income  tax  return
23    with the United States Government.
24        As  soon  as  possible after the first day of each month,
25    upon  certification  of  the  Department  of   Revenue,   the
26    Comptroller  shall  order transferred and the Treasurer shall
27    transfer from the General Revenue Fund to the Motor Fuel  Tax
28    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
29    realized under this  Act  for  the  second  preceding  month.
30    Beginning  April 1, 2000, this transfer is no longer required
31    and shall not be made.
32        Net revenue realized for a month  shall  be  the  revenue
33    collected  by the State pursuant to this Act, less the amount
34    paid out during  that  month  as  refunds  to  taxpayers  for
 
                            -48-               LRB9110257SMdv
 1    overpayment of liability.
 2        For  greater  simplicity  of  administration, it shall be
 3    permissible  for  manufacturers,  importers  and  wholesalers
 4    whose products are sold by numerous servicemen  in  Illinois,
 5    and  who  wish  to  do  so,  to assume the responsibility for
 6    accounting and paying to  the  Department  all  tax  accruing
 7    under  this Act with respect to such sales, if the servicemen
 8    who are  affected  do  not  make  written  objection  to  the
 9    Department to this arrangement.
10    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
11    eff.  6-30-99;  91-101,  eff.  7-12-99; 91-541, eff. 8-13-99;
12    revised 9-28-99.)

13        Section 20.  The Retailers' Occupation Tax Act is amended
14    by changing Sections 2-10, 2d, and 3 as follows:

15        (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
16        Sec. 2-10. Rate of tax.   Unless  otherwise  provided  in
17    this  Section,  the tax imposed by this Act is at the rate of
18    6.25% of gross  receipts  from  sales  of  tangible  personal
19    property made in the course of business.
20        With  respect to motor fuel, as defined in Section 1.1 of
21    the Motor Fuel Tax Law, and gasohol, as  defined  in  Section
22    3-40  of  the  Use Tax Act, the tax is imposed at the rate of
23    1.25%.  If, however, the aggregate tax  revenues  from  motor
24    fuel  and  gasohol under the Use Tax Act, the Service Use Tax
25    Act, the Service  Occupation  Tax  Act,  and  the  Retailers'
26    Occupation  Tax  Act  during  the period from October 1, 2003
27    through September 30, 2004 are not at least 15% more than the
28    aggregate tax revenues from  motor  fuel  and  gasohol  under
29    those  Acts  during  the  period from October 1, 2000 through
30    September 30, 2001, then beginning January 1, 2005 the tax is
31    imposed on motor fuel and gasohol at the 6.25% general rate.
32        With respect to gasohol, as defined in the Use  Tax  Act,
 
                            -49-               LRB9110257SMdv
 1    the tax imposed by this Act applies to 70% of the proceeds of
 2    sales  made  on  or after January 1, 1990, and before July 1,
 3    2003, and to 100% of the proceeds of sales made thereafter.
 4        With respect to food for human consumption that is to  be
 5    consumed  off  the  premises  where  it  is  sold (other than
 6    alcoholic beverages, soft drinks,  and  food  that  has  been
 7    prepared  for  immediate  consumption)  and  prescription and
 8    nonprescription   medicines,   drugs,   medical   appliances,
 9    modifications to a motor vehicle for the purpose of rendering
10    it usable by a disabled person, and  insulin,  urine  testing
11    materials, syringes, and needles used by diabetics, for human
12    use,  the  tax is imposed at the rate of 1%. For the purposes
13    of this Section, the term "soft drinks" means  any  complete,
14    finished,    ready-to-use,   non-alcoholic   drink,   whether
15    carbonated or not, including but not limited to  soda  water,
16    cola, fruit juice, vegetable juice, carbonated water, and all
17    other  preparations commonly known as soft drinks of whatever
18    kind or description that  are  contained  in  any  closed  or
19    sealed bottle, can, carton, or container, regardless of size.
20    "Soft  drinks"  does  not include coffee, tea, non-carbonated
21    water, infant formula, milk or milk products  as  defined  in
22    the Grade A Pasteurized Milk and Milk Products Act, or drinks
23    containing 50% or more natural fruit or vegetable juice.
24        Notwithstanding  any  other provisions of this Act, "food
25    for human consumption that is to be consumed off the premises
26    where it is sold" includes all food sold  through  a  vending
27    machine,  except  soft  drinks  and  food  products  that are
28    dispensed hot from  a  vending  machine,  regardless  of  the
29    location of the vending machine.
30    (Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
31    91-51, eff. 6-30-99.)

32        (35 ILCS 120/2d) (from Ch. 120, par. 441d)
33        Sec. 2d.  Tax prepayment  by  motor  fuel  retailer.  Any
 
                            -50-               LRB9110257SMdv
 1    person  engaged  in  the  business  of  selling motor fuel at
 2    retail, as defined in the Motor Fuel Tax Law, and who is  not
 3    a  licensed  distributor or supplier, as defined in the Motor
 4    Fuel Tax  Law,  shall  prepay  to  his  or  her  distributor,
 5    supplier,  or  other  reseller of motor fuel a portion of the
 6    tax imposed by this Act  if  the  distributor,  supplier,  or
 7    other  reseller  of motor fuel is registered under Section 2a
 8    or Section  2c  of  this  Act.   The  prepayment  requirement
 9    provided for in this Section does not apply to liquid propane
10    gas.
11        The  Retailers'  Occupation  Tax paid to the distributor,
12    supplier, or other reseller shall be an amount equal  to  0.8
13    cents  $0.04  per gallon of the motor fuel, except gasohol as
14    defined in Section 2-10 of this Act which shall be an  amount
15    equal  to  0.6  cents  $0.03  per  gallon, purchased from the
16    distributor, supplier, or other reseller.
17        Any person engaged in the business of selling motor  fuel
18    at retail shall be entitled to a credit against tax due under
19    this  Act  in  an  amount  equal  to  the  tax  paid  to  the
20    distributor, supplier, or other reseller.
21        Every distributor, supplier, or other reseller registered
22    as  provided  in  Section  2a or Section 2c of this Act shall
23    remit the prepaid tax on all motor fuel that is due from  any
24    person  engaged  in  the  business of selling at retail motor
25    fuel with the returns filed under Section 2f or Section 3  of
26    this  Act,  but  the  vendors  discount provided in Section 3
27    shall not  apply  to  the  amount  of  prepaid  tax  that  is
28    remitted.  Any  distributor or supplier who fails to properly
29    collect and remit the tax shall be liable for the  tax.   For
30    purposes  of this Section, the prepaid tax is due on invoiced
31    gallons sold during a month by the 20th day of the  following
32    month.
33    (Source: P.A. 86-1475; 87-14.)
 
                            -51-               LRB9110257SMdv
 1        (35 ILCS 120/3) (from Ch. 120, par. 442)
 2        Sec. 3.  Except as provided in this Section, on or before
 3    the  twentieth  day  of  each  calendar  month,  every person
 4    engaged in the business of selling tangible personal property
 5    at retail in this State during the preceding  calendar  month
 6    shall file a return with the Department, stating:
 7             1.  The name of the seller;
 8             2.  His  residence  address  and  the address of his
 9        principal place  of  business  and  the  address  of  the
10        principal  place  of  business  (if  that  is a different
11        address) from which he engages in the business of selling
12        tangible personal property at retail in this State;
13             3.  Total amount of receipts received by him  during
14        the  preceding calendar month or quarter, as the case may
15        be, from sales of tangible personal  property,  and  from
16        services furnished, by him during such preceding calendar
17        month or quarter;
18             4.  Total   amount   received   by  him  during  the
19        preceding calendar month or quarter on  charge  and  time
20        sales  of  tangible  personal property, and from services
21        furnished, by him prior to the month or quarter for which
22        the return is filed;
23             5.  Deductions allowed by law;
24             6.  Gross receipts which were received by him during
25        the preceding calendar month  or  quarter  and  upon  the
26        basis of which the tax is imposed;
27             7.  The  amount  of credit provided in Section 2d of
28        this Act;
29             8.  The amount of tax due;
30             9.  The signature of the taxpayer; and
31             10.  Such  other  reasonable  information   as   the
32        Department may require.
33        If a taxpayer fails to sign a return within 30 days after
34    the proper notice and demand for signature by the Department,
 
                            -52-               LRB9110257SMdv
 1    the  return shall be considered valid and any amount shown to
 2    be due on the return shall be deemed assessed.
 3        Each return shall be  accompanied  by  the  statement  of
 4    prepaid tax issued pursuant to Section 2e for which credit is
 5    claimed.
 6        A  retailer  may  accept a Manufacturer's Purchase Credit
 7    certification from a purchaser in satisfaction of Use Tax  as
 8    provided  in Section 3-85 of the Use Tax Act if the purchaser
 9    provides the appropriate documentation as required by Section
10    3-85 of the Use Tax Act.  A  Manufacturer's  Purchase  Credit
11    certification,  accepted by a retailer as provided in Section
12    3-85 of the Use Tax Act, may be  used  by  that  retailer  to
13    satisfy  Retailers'  Occupation  Tax  liability in the amount
14    claimed in the certification, not  to  exceed  6.25%  of  the
15    receipts subject to tax from a qualifying purchase.
16        The  Department  may  require  returns  to  be filed on a
17    quarterly basis.  If so required, a return for each  calendar
18    quarter  shall be filed on or before the twentieth day of the
19    calendar month following the end of  such  calendar  quarter.
20    The taxpayer shall also file a return with the Department for
21    each  of the first two months of each calendar quarter, on or
22    before the twentieth day of  the  following  calendar  month,
23    stating:
24             1.  The name of the seller;
25             2.  The  address  of the principal place of business
26        from which he engages in the business of selling tangible
27        personal property at retail in this State;
28             3.  The total amount of taxable receipts received by
29        him during the preceding calendar  month  from  sales  of
30        tangible  personal  property by him during such preceding
31        calendar month, including receipts from charge  and  time
32        sales, but less all deductions allowed by law;
33             4.  The  amount  of credit provided in Section 2d of
34        this Act;
 
                            -53-               LRB9110257SMdv
 1             5.  The amount of tax due; and
 2             6.  Such  other  reasonable   information   as   the
 3        Department may require.
 4        If  a total amount of less than $1 is payable, refundable
 5    or creditable, such amount shall be disregarded if it is less
 6    than 50 cents and shall be increased to $1 if it is 50  cents
 7    or more.
 8        Beginning  October 1, 1993, a taxpayer who has an average
 9    monthly tax liability of $150,000  or  more  shall  make  all
10    payments  required  by  rules of the Department by electronic
11    funds transfer.  Beginning October 1, 1994,  a  taxpayer  who
12    has  an  average  monthly  tax  liability of $100,000 or more
13    shall make all payments required by rules of  the  Department
14    by  electronic  funds transfer.  Beginning October 1, 1995, a
15    taxpayer who has an average monthly tax liability of  $50,000
16    or  more  shall  make  all  payments required by rules of the
17    Department by electronic funds transfer.   Beginning  October
18    1,  2000,  a  taxpayer  who  has  an  annual tax liability of
19    $200,000 or more shall make all payments required by rules of
20    the  Department  by  electronic  funds  transfer.   The  term
21    "annual tax liability" shall be the  sum  of  the  taxpayer's
22    liabilities  under  this  Act,  and under all other State and
23    local  occupation  and  use  tax  laws  administered  by  the
24    Department, for the immediately preceding calendar year.  The
25    term  "average monthly tax liability" shall be the sum of the
26    taxpayer's liabilities under this Act, and  under  all  other
27    State  and  local occupation and use tax laws administered by
28    the Department, for the immediately preceding  calendar  year
29    divided by 12.
30        Before  August  1  of  each  year  beginning in 1993, the
31    Department  shall  notify  all  taxpayers  required  to  make
32    payments  by  electronic  funds  transfer.    All   taxpayers
33    required  to make payments by electronic funds transfer shall
34    make those payments for a minimum of one  year  beginning  on
 
                            -54-               LRB9110257SMdv
 1    October 1.
 2        Any  taxpayer not required to make payments by electronic
 3    funds transfer may make payments by electronic funds transfer
 4    with the permission of the Department.
 5        All taxpayers required  to  make  payment  by  electronic
 6    funds  transfer  and  any taxpayers authorized to voluntarily
 7    make payments by electronic funds transfer shall  make  those
 8    payments in the manner authorized by the Department.
 9        The Department shall adopt such rules as are necessary to
10    effectuate  a  program  of  electronic funds transfer and the
11    requirements of this Section.
12        Any amount which is required to be shown or  reported  on
13    any  return  or  other document under this Act shall, if such
14    amount is not a whole-dollar  amount,  be  increased  to  the
15    nearest  whole-dollar amount in any case where the fractional
16    part of a dollar is 50 cents or more, and  decreased  to  the
17    nearest  whole-dollar  amount  where the fractional part of a
18    dollar is less than 50 cents.
19        If the retailer is otherwise required to file  a  monthly
20    return and if the retailer's average monthly tax liability to
21    the  Department  does  not  exceed  $200,  the Department may
22    authorize his returns to be filed on a quarter annual  basis,
23    with  the  return  for January, February and March of a given
24    year being due by April 20 of such year; with the return  for
25    April,  May  and June of a given year being due by July 20 of
26    such year; with the return for July, August and September  of
27    a  given  year being due by October 20 of such year, and with
28    the return for October, November and December of a given year
29    being due by January 20 of the following year.
30        If the retailer is otherwise required to file  a  monthly
31    or quarterly return and if the retailer's average monthly tax
32    liability  with  the  Department  does  not  exceed  $50, the
33    Department may authorize his returns to be filed on an annual
34    basis, with the return for a given year being due by  January
 
                            -55-               LRB9110257SMdv
 1    20 of the following year.
 2        Such  quarter  annual  and annual returns, as to form and
 3    substance, shall be  subject  to  the  same  requirements  as
 4    monthly returns.
 5        Notwithstanding   any   other   provision   in  this  Act
 6    concerning the time within which  a  retailer  may  file  his
 7    return, in the case of any retailer who ceases to engage in a
 8    kind  of  business  which  makes  him  responsible for filing
 9    returns under this Act, such  retailer  shall  file  a  final
10    return  under  this Act with the Department not more than one
11    month after discontinuing such business.
12        Where  the  same  person  has  more  than  one   business
13    registered  with  the Department under separate registrations
14    under this Act, such person may not file each return that  is
15    due   as   a  single  return  covering  all  such  registered
16    businesses, but shall file separate  returns  for  each  such
17    registered business.
18        In  addition, with respect to motor vehicles, watercraft,
19    aircraft, and trailers that are  required  to  be  registered
20    with  an  agency  of  this State, every retailer selling this
21    kind of tangible  personal  property  shall  file,  with  the
22    Department,  upon a form to be prescribed and supplied by the
23    Department, a separate return for each such item of  tangible
24    personal  property  which  the  retailer  sells,  except that
25    where, in the  same  transaction,  a  retailer  of  aircraft,
26    watercraft,  motor  vehicles  or trailers transfers more than
27    one aircraft, watercraft, motor vehicle or trailer to another
28    aircraft,  watercraft,  motor  vehicle  retailer  or  trailer
29    retailer for the purpose of resale, that  seller  for  resale
30    may  report  the  transfer of all aircraft, watercraft, motor
31    vehicles or trailers involved  in  that  transaction  to  the
32    Department  on the same uniform invoice-transaction reporting
33    return form.  For  purposes  of  this  Section,  "watercraft"
34    means a Class 2, Class 3, or Class 4 watercraft as defined in
 
                            -56-               LRB9110257SMdv
 1    Section  3-2  of  the  Boat  Registration  and  Safety Act, a
 2    personal watercraft, or any boat  equipped  with  an  inboard
 3    motor.
 4        Any  retailer  who sells only motor vehicles, watercraft,
 5    aircraft, or trailers that are required to be registered with
 6    an agency of this State, so that  all  retailers'  occupation
 7    tax liability is required to be reported, and is reported, on
 8    such  transaction  reporting returns and who is not otherwise
 9    required to file monthly or quarterly returns, need not  file
10    monthly or quarterly returns.  However, those retailers shall
11    be required to file returns on an annual basis.
12        The  transaction  reporting  return, in the case of motor
13    vehicles or trailers that are required to be registered  with
14    an  agency  of  this State, shall be the same document as the
15    Uniform Invoice referred to in Section 5-402 of The  Illinois
16    Vehicle  Code  and  must  show  the  name  and address of the
17    seller; the name and address of the purchaser; the amount  of
18    the  selling  price  including  the  amount  allowed  by  the
19    retailer  for  traded-in property, if any; the amount allowed
20    by the retailer for the traded-in tangible personal property,
21    if any, to the extent to which Section 1 of this  Act  allows
22    an exemption for the value of traded-in property; the balance
23    payable  after  deducting  such  trade-in  allowance from the
24    total selling price; the amount of tax due from the  retailer
25    with respect to such transaction; the amount of tax collected
26    from  the  purchaser  by the retailer on such transaction (or
27    satisfactory evidence that  such  tax  is  not  due  in  that
28    particular  instance, if that is claimed to be the fact); the
29    place and date of the sale; a  sufficient  identification  of
30    the  property  sold; such other information as is required in
31    Section 5-402 of The Illinois Vehicle Code,  and  such  other
32    information as the Department may reasonably require.
33        The   transaction   reporting   return  in  the  case  of
34    watercraft or aircraft must show the name and address of  the
 
                            -57-               LRB9110257SMdv
 1    seller;  the name and address of the purchaser; the amount of
 2    the  selling  price  including  the  amount  allowed  by  the
 3    retailer for traded-in property, if any; the  amount  allowed
 4    by the retailer for the traded-in tangible personal property,
 5    if  any,  to the extent to which Section 1 of this Act allows
 6    an exemption for the value of traded-in property; the balance
 7    payable after deducting  such  trade-in  allowance  from  the
 8    total  selling price; the amount of tax due from the retailer
 9    with respect to such transaction; the amount of tax collected
10    from the purchaser by the retailer on  such  transaction  (or
11    satisfactory  evidence  that  such  tax  is  not  due in that
12    particular instance, if that is claimed to be the fact);  the
13    place  and  date  of the sale, a sufficient identification of
14    the  property  sold,  and  such  other  information  as   the
15    Department may reasonably require.
16        Such  transaction  reporting  return  shall  be filed not
17    later than 20 days after the day of delivery of the item that
18    is being sold, but may be filed by the retailer at  any  time
19    sooner  than  that  if  he chooses to do so.  The transaction
20    reporting return and tax remittance  or  proof  of  exemption
21    from   the  Illinois  use  tax  may  be  transmitted  to  the
22    Department by way of the State agency with  which,  or  State
23    officer  with  whom  the  tangible  personal property must be
24    titled or registered (if titling or registration is required)
25    if the Department and such agency or State officer  determine
26    that   this   procedure   will  expedite  the  processing  of
27    applications for title or registration.
28        With each such transaction reporting return, the retailer
29    shall remit the proper amount of tax  due  (or  shall  submit
30    satisfactory evidence that the sale is not taxable if that is
31    the  case),  to  the  Department or its agents, whereupon the
32    Department shall issue, in the purchaser's name,  a  use  tax
33    receipt  (or  a certificate of exemption if the Department is
34    satisfied that the particular sale is tax exempt) which  such
 
                            -58-               LRB9110257SMdv
 1    purchaser  may  submit  to  the  agency  with which, or State
 2    officer with whom, he must title  or  register  the  tangible
 3    personal   property   that   is   involved   (if  titling  or
 4    registration is required)  in  support  of  such  purchaser's
 5    application  for an Illinois certificate or other evidence of
 6    title or registration to such tangible personal property.
 7        No retailer's failure or refusal to remit tax under  this
 8    Act  precludes  a  user,  who  has paid the proper tax to the
 9    retailer, from obtaining his certificate of  title  or  other
10    evidence of title or registration (if titling or registration
11    is  required)  upon  satisfying the Department that such user
12    has paid the proper tax (if tax is due) to the retailer.  The
13    Department shall adopt appropriate rules  to  carry  out  the
14    mandate of this paragraph.
15        If  the  user who would otherwise pay tax to the retailer
16    wants the transaction reporting return filed and the  payment
17    of  the  tax  or  proof  of  exemption made to the Department
18    before the retailer is willing to take these actions and such
19    user has not paid the tax to  the  retailer,  such  user  may
20    certify  to  the  fact  of such delay by the retailer and may
21    (upon the Department being satisfied of  the  truth  of  such
22    certification)  transmit  the  information  required  by  the
23    transaction  reporting  return  and the remittance for tax or
24    proof of exemption directly to the Department and obtain  his
25    tax  receipt  or  exemption determination, in which event the
26    transaction reporting return and tax  remittance  (if  a  tax
27    payment  was required) shall be credited by the Department to
28    the  proper  retailer's  account  with  the  Department,  but
29    without the 2.1% or  1.75%  discount  provided  for  in  this
30    Section  being  allowed.  When the user pays the tax directly
31    to the Department, he shall pay the tax in  the  same  amount
32    and in the same form in which it would be remitted if the tax
33    had been remitted to the Department by the retailer.
34        Refunds  made  by  the seller during the preceding return
 
                            -59-               LRB9110257SMdv
 1    period  to  purchasers,  on  account  of  tangible   personal
 2    property  returned  to  the  seller,  shall  be  allowed as a
 3    deduction under subdivision 5 of  his  monthly  or  quarterly
 4    return,   as  the  case  may  be,  in  case  the  seller  had
 5    theretofore included the  receipts  from  the  sale  of  such
 6    tangible  personal  property in a return filed by him and had
 7    paid the tax  imposed  by  this  Act  with  respect  to  such
 8    receipts.
 9        Where  the  seller  is a corporation, the return filed on
10    behalf of such corporation shall be signed by the  president,
11    vice-president,  secretary  or  treasurer  or by the properly
12    accredited agent of such corporation.
13        Where the seller is  a  limited  liability  company,  the
14    return filed on behalf of the limited liability company shall
15    be  signed by a manager, member, or properly accredited agent
16    of the limited liability company.
17        Except as provided in this Section, the  retailer  filing
18    the  return  under  this Section shall, at the time of filing
19    such return, pay to the Department the amount of tax  imposed
20    by  this Act less a discount of 2.1% prior to January 1, 1990
21    and 1.75% on and after January 1, 1990, or  $5  per  calendar
22    year, whichever is greater, which is allowed to reimburse the
23    retailer  for  the  expenses  incurred  in  keeping  records,
24    preparing and filing returns, remitting the tax and supplying
25    data  to  the  Department  on  request.   Any prepayment made
26    pursuant to Section 2d of this Act shall be included  in  the
27    amount  on which such 2.1% or 1.75% discount is computed.  In
28    the case of retailers  who  report  and  pay  the  tax  on  a
29    transaction   by  transaction  basis,  as  provided  in  this
30    Section, such discount shall be  taken  with  each  such  tax
31    remittance  instead  of when such retailer files his periodic
32    return.
33        Before October 1, 2000, if the taxpayer's average monthly
34    tax liability to the Department under this Act, the  Use  Tax
 
                            -60-               LRB9110257SMdv
 1    Act,  the Service Occupation Tax Act, and the Service Use Tax
 2    Act, excluding any liability for  prepaid  sales  tax  to  be
 3    remitted  in  accordance  with  Section  2d  of this Act, was
 4    $10,000 or more during  the  preceding  4  complete  calendar
 5    quarters,  he  shall  file  a return with the Department each
 6    month by the 20th day of the month next following  the  month
 7    during  which  such  tax liability is incurred and shall make
 8    payments to the Department on or before the 7th,  15th,  22nd
 9    and  last  day  of  the  month during which such liability is
10    incurred. On and after October 1,  2000,  if  the  taxpayer's
11    average  monthly  tax  liability to the Department under this
12    Act, the Use Tax Act, the Service Occupation Tax Act, and the
13    Service Use Tax Act,  excluding  any  liability  for  prepaid
14    sales  tax  to  be  remitted in accordance with Section 2d of
15    this Act, was $20,000 or more during the preceding 4 complete
16    calendar quarters, he shall file a return with the Department
17    each month by the 20th day of the month  next  following  the
18    month  during  which such tax liability is incurred and shall
19    make payment to the Department on or before  the  7th,  15th,
20    22nd and last day of the month during which such liability is
21    incurred.    If  the month during which such tax liability is
22    incurred began prior to January 1, 1985, each  payment  shall
23    be  in  an  amount  equal  to  1/4  of  the taxpayer's actual
24    liability for the month or an amount set  by  the  Department
25    not  to  exceed  1/4  of the average monthly liability of the
26    taxpayer to the  Department  for  the  preceding  4  complete
27    calendar  quarters  (excluding the month of highest liability
28    and the month of lowest liability in such 4 quarter  period).
29    If  the  month  during  which  such tax liability is incurred
30    begins on or after January 1, 1985 and prior  to  January  1,
31    1987,  each  payment  shall be in an amount equal to 22.5% of
32    the taxpayer's actual liability for the month or 27.5% of the
33    taxpayer's liability for  the  same  calendar  month  of  the
34    preceding year.  If the month during which such tax liability
 
                            -61-               LRB9110257SMdv
 1    is  incurred  begins on or after January 1, 1987 and prior to
 2    January 1, 1988, each payment shall be in an amount equal  to
 3    22.5%  of  the  taxpayer's  actual liability for the month or
 4    26.25% of the taxpayer's  liability  for  the  same  calendar
 5    month  of the preceding year.  If the month during which such
 6    tax liability is incurred begins on or after January 1, 1988,
 7    and prior to January 1, 1989, or begins on or  after  January
 8    1, 1996, each payment shall be in an amount equal to 22.5% of
 9    the  taxpayer's  actual liability for the month or 25% of the
10    taxpayer's liability for  the  same  calendar  month  of  the
11    preceding  year. If the month during which such tax liability
12    is incurred begins on or after January 1, 1989, and prior  to
13    January  1, 1996, each payment shall be in an amount equal to
14    22.5% of the taxpayer's actual liability for the month or 25%
15    of the taxpayer's liability for the same  calendar  month  of
16    the preceding year or 100% of the taxpayer's actual liability
17    for the quarter monthly reporting period.  The amount of such
18    quarter  monthly payments shall be credited against the final
19    tax liability  of  the  taxpayer's  return  for  that  month.
20    Before  October  1, 2000, once applicable, the requirement of
21    the making of quarter monthly payments to the  Department  by
22    taxpayers  having an average monthly tax liability of $10,000
23    or more as determined in  the  manner  provided  above  shall
24    continue  until  such taxpayer's average monthly liability to
25    the Department  during  the  preceding  4  complete  calendar
26    quarters  (excluding  the  month of highest liability and the
27    month of lowest liability) is less than $9,000, or until such
28    taxpayer's average monthly liability  to  the  Department  as
29    computed  for  each  calendar  quarter  of  the  4  preceding
30    complete  calendar  quarter  period  is  less  than  $10,000.
31    However,  if  a  taxpayer  can  show  the  Department  that a
32    substantial change in the taxpayer's  business  has  occurred
33    which  causes  the  taxpayer  to  anticipate that his average
34    monthly tax liability for the reasonably  foreseeable  future
 
                            -62-               LRB9110257SMdv
 1    will fall below the $10,000 threshold stated above, then such
 2    taxpayer  may  petition  the  Department for a change in such
 3    taxpayer's reporting status.  On and after October  1,  2000,
 4    once  applicable,  the  requirement  of the making of quarter
 5    monthly payments to the Department  by  taxpayers  having  an
 6    average   monthly   tax  liability  of  $20,000  or  more  as
 7    determined in the manner provided above shall continue  until
 8    such  taxpayer's  average monthly liability to the Department
 9    during the preceding 4 complete calendar quarters  (excluding
10    the  month  of  highest  liability  and  the  month of lowest
11    liability) is less than  $19,000  or  until  such  taxpayer's
12    average  monthly  liability to the Department as computed for
13    each calendar quarter of the 4  preceding  complete  calendar
14    quarter  period is less than $20,000.  However, if a taxpayer
15    can show the Department that  a  substantial  change  in  the
16    taxpayer's business has occurred which causes the taxpayer to
17    anticipate  that  his  average  monthly tax liability for the
18    reasonably foreseeable future will  fall  below  the  $20,000
19    threshold  stated  above, then such taxpayer may petition the
20    Department for a change in such taxpayer's reporting  status.
21    The  Department shall change such taxpayer's reporting status
22    unless it finds that such change is seasonal  in  nature  and
23    not  likely  to  be  long  term.  If any such quarter monthly
24    payment is not paid at the time or in the amount required  by
25    this Section, then the taxpayer shall be liable for penalties
26    and interest on the difference between the minimum amount due
27    as  a  payment and the amount of such quarter monthly payment
28    actually and timely paid, except insofar as the taxpayer  has
29    previously  made payments for that month to the Department in
30    excess of the minimum payments previously due as provided  in
31    this  Section. The Department shall make reasonable rules and
32    regulations to govern the quarter monthly payment amount  and
33    quarter monthly payment dates for taxpayers who file on other
34    than a calendar monthly basis.
 
                            -63-               LRB9110257SMdv
 1        Without  regard to whether a taxpayer is required to make
 2    quarter monthly payments as specified above, any taxpayer who
 3    is required by Section 2d of this Act to  collect  and  remit
 4    prepaid  taxes  and has collected prepaid taxes which average
 5    in excess  of  $25,000  per  month  during  the  preceding  2
 6    complete  calendar  quarters,  shall  file  a return with the
 7    Department as required by Section 2f and shall make  payments
 8    to  the  Department on or before the 7th, 15th, 22nd and last
 9    day of the month during which such liability is incurred.  If
10    the month during which such tax liability is  incurred  began
11    prior  to  the effective date of this amendatory Act of 1985,
12    each payment shall be in an amount not less than 22.5% of the
13    taxpayer's actual liability under Section 2d.  If  the  month
14    during  which  such  tax  liability  is incurred begins on or
15    after January 1, 1986, each payment shall  be  in  an  amount
16    equal  to  22.5%  of  the taxpayer's actual liability for the
17    month or 27.5% of  the  taxpayer's  liability  for  the  same
18    calendar  month of the preceding calendar year.  If the month
19    during which such tax liability  is  incurred  begins  on  or
20    after  January  1,  1987,  each payment shall be in an amount
21    equal to 22.5% of the taxpayer's  actual  liability  for  the
22    month  or  26.25%  of  the  taxpayer's liability for the same
23    calendar month of the preceding year.   The  amount  of  such
24    quarter  monthly payments shall be credited against the final
25    tax liability of the taxpayer's return for that  month  filed
26    under  this  Section or Section 2f, as the case may be.  Once
27    applicable, the requirement of the making of quarter  monthly
28    payments  to  the Department pursuant to this paragraph shall
29    continue until such taxpayer's average  monthly  prepaid  tax
30    collections during the preceding 2 complete calendar quarters
31    is  $25,000  or less.  If any such quarter monthly payment is
32    not paid at the time or in the amount required, the  taxpayer
33    shall   be   liable   for  penalties  and  interest  on  such
34    difference, except insofar as  the  taxpayer  has  previously
 
                            -64-               LRB9110257SMdv
 1    made  payments  for  that  month  in  excess  of  the minimum
 2    payments previously due.
 3        If any payment provided for in this Section  exceeds  the
 4    taxpayer's  liabilities  under this Act, the Use Tax Act, the
 5    Service Occupation Tax Act and the Service Use  Tax  Act,  as
 6    shown on an original monthly return, the Department shall, if
 7    requested  by  the  taxpayer,  issue to the taxpayer a credit
 8    memorandum no later than 30 days after the date  of  payment.
 9    The  credit  evidenced  by  such  credit  memorandum  may  be
10    assigned  by  the  taxpayer  to a similar taxpayer under this
11    Act, the Use Tax Act, the Service Occupation Tax Act  or  the
12    Service  Use Tax Act, in accordance with reasonable rules and
13    regulations to be prescribed by the Department.  If  no  such
14    request  is made, the taxpayer may credit such excess payment
15    against tax liability subsequently  to  be  remitted  to  the
16    Department  under  this  Act,  the  Use  Tax Act, the Service
17    Occupation Tax Act or the Service Use Tax Act, in  accordance
18    with  reasonable  rules  and  regulations  prescribed  by the
19    Department.  If the Department subsequently  determined  that
20    all  or  any part of the credit taken was not actually due to
21    the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
22    shall be reduced by 2.1% or 1.75% of the  difference  between
23    the  credit  taken  and  that actually due, and that taxpayer
24    shall  be  liable  for  penalties  and   interest   on   such
25    difference.
26        If a retailer of motor fuel is entitled to a credit under
27    Section 2d of this Act which exceeds the taxpayer's liability
28    to  the  Department  under  this  Act for the month which the
29    taxpayer is filing a return, the Department shall  issue  the
30    taxpayer a credit memorandum for the excess.
31        Beginning  January  1,  1990,  each  month the Department
32    shall pay into the Local Government Tax Fund, a special  fund
33    in  the  State  treasury  which  is  hereby  created, the net
34    revenue realized for the preceding month from the 1%  tax  on
 
                            -65-               LRB9110257SMdv
 1    sales  of  food for human consumption which is to be consumed
 2    off the premises where  it  is  sold  (other  than  alcoholic
 3    beverages,  soft  drinks and food which has been prepared for
 4    immediate consumption) and prescription  and  nonprescription
 5    medicines,  drugs,  medical  appliances  and  insulin,  urine
 6    testing materials, syringes and needles used by diabetics.
 7        Beginning  January  1,  1990,  each  month the Department
 8    shall pay into the County and Mass Transit District  Fund,  a
 9    special  fund  in the State treasury which is hereby created,
10    4% of the net revenue realized for the preceding  month  from
11    the 6.25% general rate.
12        Beginning  November  1,  2000,  and  so  long as the rate
13    remains at 1.25%, each month the Department  shall  pay  into
14    the  County  and  Mass  Transit  District Fund 20% of the net
15    revenue realized for the preceding month from the 1.25%  rate
16    on the selling price of motor fuel and gasohol.
17        Beginning  January  1,  1990,  each  month the Department
18    shall pay into the Local Government Tax Fund 16% of  the  net
19    revenue  realized  for  the  preceding  month  from the 6.25%
20    general rate  on  the  selling  price  of  tangible  personal
21    property.
22        Beginning  November  1,  2000,  and  so  long as the rate
23    remains at 1.25%, each month the Department  shall  pay  into
24    the Local Government Tax Fund 80% of the net revenue realized
25    for  the  preceding  month from the 1.25% rate on the selling
26    price of motor fuel and gasohol.
27        Of the remainder of the moneys received by the Department
28    pursuant to this Act, (a) 1.75% thereof shall  be  paid  into
29    the  Build  Illinois Fund and (b) prior to July 1, 1989, 2.2%
30    and on and after July 1, 1989, 3.8%  thereof  shall  be  paid
31    into  the  Build Illinois Fund; provided, however, that if in
32    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
33    as the case may be, of the moneys received by the  Department
34    and required to be paid into the Build Illinois Fund pursuant
 
                            -66-               LRB9110257SMdv
 1    to  this  Act, Section 9 of the Use Tax Act, Section 9 of the
 2    Service Use Tax Act, and Section 9 of the Service  Occupation
 3    Tax  Act,  such  Acts being hereinafter called the "Tax Acts"
 4    and such aggregate of 2.2% or 3.8%, as the case  may  be,  of
 5    moneys being hereinafter called the "Tax Act Amount", and (2)
 6    the  amount  transferred  to the Build Illinois Fund from the
 7    State and Local Sales Tax Reform Fund shall be less than  the
 8    Annual  Specified  Amount (as hereinafter defined), an amount
 9    equal to the difference shall be immediately  paid  into  the
10    Build  Illinois  Fund  from  other  moneys  received  by  the
11    Department  pursuant  to  the Tax Acts; the "Annual Specified
12    Amount" means the amounts specified below  for  fiscal  years
13    1986 through 1993:
14             Fiscal Year              Annual Specified Amount
15                 1986                       $54,800,000
16                 1987                       $76,650,000
17                 1988                       $80,480,000
18                 1989                       $88,510,000
19                 1990                       $115,330,000
20                 1991                       $145,470,000
21                 1992                       $182,730,000
22                 1993                      $206,520,000;
23    and  means  the Certified Annual Debt Service Requirement (as
24    defined in Section 13 of the Build Illinois Bond Act) or  the
25    Tax  Act  Amount,  whichever is greater, for fiscal year 1994
26    and each fiscal year thereafter; and further  provided,  that
27    if  on  the last business day of any month the sum of (1) the
28    Tax Act Amount  required  to  be  deposited  into  the  Build
29    Illinois  Bond Account in the Build Illinois Fund during such
30    month and (2) the amount transferred to  the  Build  Illinois
31    Fund  from  the  State  and Local Sales Tax Reform Fund shall
32    have been less than 1/12 of the Annual Specified  Amount,  an
33    amount equal to the difference shall be immediately paid into
34    the  Build  Illinois  Fund  from other moneys received by the
 
                            -67-               LRB9110257SMdv
 1    Department pursuant to the Tax Acts; and,  further  provided,
 2    that  in  no  event  shall  the  payments  required under the
 3    preceding proviso result in aggregate payments into the Build
 4    Illinois Fund pursuant to this clause (b) for any fiscal year
 5    in excess of the greater of (i) the Tax Act  Amount  or  (ii)
 6    the  Annual  Specified  Amount  for  such  fiscal  year.  The
 7    amounts payable into the Build Illinois Fund under clause (b)
 8    of the first sentence in this paragraph shall be payable only
 9    until such time as the aggregate amount on deposit under each
10    trust  indenture  securing  Bonds  issued   and   outstanding
11    pursuant to the Build Illinois Bond Act is sufficient, taking
12    into  account any future investment income, to fully provide,
13    in accordance with such indenture, for the defeasance  of  or
14    the  payment  of  the  principal  of,  premium,  if  any, and
15    interest on the Bonds secured by such indenture  and  on  any
16    Bonds expected to be issued thereafter and all fees and costs
17    payable  with  respect  thereto,  all  as  certified  by  the
18    Director  of  the  Bureau  of  the  Budget.   If  on the last
19    business day of any month  in  which  Bonds  are  outstanding
20    pursuant  to  the  Build  Illinois Bond Act, the aggregate of
21    moneys deposited in the Build Illinois Bond  Account  in  the
22    Build  Illinois  Fund  in  such  month shall be less than the
23    amount required to be transferred  in  such  month  from  the
24    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
25    Retirement and Interest Fund pursuant to Section  13  of  the
26    Build  Illinois  Bond Act, an amount equal to such deficiency
27    shall be immediately paid from other moneys received  by  the
28    Department  pursuant  to  the  Tax Acts to the Build Illinois
29    Fund; provided, however, that any amounts paid to  the  Build
30    Illinois  Fund  in  any fiscal year pursuant to this sentence
31    shall be deemed to constitute payments pursuant to clause (b)
32    of the first sentence of this paragraph and shall reduce  the
33    amount  otherwise  payable  for  such fiscal year pursuant to
34    that clause (b).   The  moneys  received  by  the  Department
 
                            -68-               LRB9110257SMdv
 1    pursuant  to  this  Act and required to be deposited into the
 2    Build Illinois Fund are subject  to  the  pledge,  claim  and
 3    charge  set  forth  in  Section 12 of the Build Illinois Bond
 4    Act.
 5        Subject to payment of amounts  into  the  Build  Illinois
 6    Fund  as  provided  in  the  preceding  paragraph  or  in any
 7    amendment thereto hereafter enacted, the following  specified
 8    monthly   installment   of   the   amount  requested  in  the
 9    certificate of the Chairman  of  the  Metropolitan  Pier  and
10    Exposition  Authority  provided  under  Section  8.25f of the
11    State Finance Act, but not in excess of  sums  designated  as
12    "Total  Deposit",  shall  be  deposited in the aggregate from
13    collections under Section 9 of the Use Tax Act, Section 9  of
14    the  Service Use Tax Act, Section 9 of the Service Occupation
15    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
16    into  the  McCormick  Place  Expansion  Project  Fund  in the
17    specified fiscal years.
18             Fiscal Year                   Total Deposit
19                 1993                            $0
20                 1994                        53,000,000
21                 1995                        58,000,000
22                 1996                        61,000,000
23                 1997                        64,000,000
24                 1998                        68,000,000
25                 1999                        71,000,000
26                 2000                        75,000,000
27                 2001                        80,000,000
28                 2002                        84,000,000
29                 2003                        89,000,000
30                 2004                        93,000,000
31                 2005                        97,000,000
32                 2006                       102,000,000
33                 2007                       108,000,000
34                 2008                       115,000,000
 
                            -69-               LRB9110257SMdv
 1                 2009                       120,000,000
 2                 2010                       126,000,000
 3                 2011                       132,000,000
 4                 2012                       138,000,000
 5                 2013 and                   145,000,000
 6        each fiscal year
 7        thereafter that bonds
 8        are outstanding under
 9        Section 13.2 of the
10        Metropolitan Pier and
11        Exposition Authority
12        Act, but not after fiscal year 2029.
13        Beginning July 20, 1993 and in each month of each  fiscal
14    year  thereafter,  one-eighth  of the amount requested in the
15    certificate of the Chairman  of  the  Metropolitan  Pier  and
16    Exposition  Authority  for  that fiscal year, less the amount
17    deposited into the McCormick Place Expansion Project Fund  by
18    the  State Treasurer in the respective month under subsection
19    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
20    Authority  Act,  plus cumulative deficiencies in the deposits
21    required under this Section for previous  months  and  years,
22    shall be deposited into the McCormick Place Expansion Project
23    Fund,  until  the  full amount requested for the fiscal year,
24    but not in excess of the amount  specified  above  as  "Total
25    Deposit", has been deposited.
26        Subject  to  payment  of  amounts into the Build Illinois
27    Fund and the McCormick Place Expansion Project Fund  pursuant
28    to  the  preceding  paragraphs  or  in  any amendment thereto
29    hereafter enacted, each month the Department shall  pay  into
30    the  Local  Government  Distributive  Fund  0.4%  of  the net
31    revenue realized for the preceding month from the 5%  general
32    rate  or  0.4%  of  80%  of  the net revenue realized for the
33    preceding month from the 6.25% general rate, as the case  may
34    be,  on the selling price of tangible personal property which
 
                            -70-               LRB9110257SMdv
 1    amount shall, subject to  appropriation,  be  distributed  as
 2    provided  in  Section 2 of the State Revenue Sharing Act.  No
 3    payments or distributions pursuant to this paragraph shall be
 4    made if the  tax  imposed  by  this  Act  on  photoprocessing
 5    products  is  declared  unconstitutional,  or if the proceeds
 6    from such tax are unavailable  for  distribution  because  of
 7    litigation.
 8        Subject  to  payment  of  amounts into the Build Illinois
 9    Fund, the McCormick Place Expansion Project to the  preceding
10    paragraphs  or  in  any amendments thereto hereafter enacted,
11    beginning July 1, 1993, the Department shall each  month  pay
12    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
13    revenue realized for  the  preceding  month  from  the  6.25%
14    general  rate  on  the  selling  price  of  tangible personal
15    property.
16        Of the remainder of the moneys received by the Department
17    pursuant to this Act, 75% thereof  shall  be  paid  into  the
18    State Treasury and 25% shall be reserved in a special account
19    and  used  only for the transfer to the Common School Fund as
20    part of the monthly transfer from the General Revenue Fund in
21    accordance with Section 8a of the State Finance Act.
22        The Department may, upon separate  written  notice  to  a
23    taxpayer,  require  the taxpayer to prepare and file with the
24    Department on a form prescribed by the Department within  not
25    less  than  60  days  after  receipt  of the notice an annual
26    information return for the tax year specified in the  notice.
27    Such   annual  return  to  the  Department  shall  include  a
28    statement of gross receipts as shown by the  retailer's  last
29    Federal  income  tax  return.   If  the total receipts of the
30    business as reported in the Federal income tax return do  not
31    agree  with  the gross receipts reported to the Department of
32    Revenue for the same period, the retailer shall attach to his
33    annual return a schedule showing a reconciliation  of  the  2
34    amounts  and  the reasons for the difference.  The retailer's
 
                            -71-               LRB9110257SMdv
 1    annual return to the Department shall also disclose the  cost
 2    of goods sold by the retailer during the year covered by such
 3    return,  opening  and  closing  inventories of such goods for
 4    such year, costs of goods used from stock or taken from stock
 5    and given away by the  retailer  during  such  year,  payroll
 6    information  of  the retailer's business during such year and
 7    any additional reasonable information  which  the  Department
 8    deems  would  be  helpful  in determining the accuracy of the
 9    monthly, quarterly or annual returns filed by  such  retailer
10    as provided for in this Section.
11        If the annual information return required by this Section
12    is  not  filed  when  and  as required, the taxpayer shall be
13    liable as follows:
14             (i)  Until January 1, 1994, the  taxpayer  shall  be
15        liable  for  a  penalty equal to 1/6 of 1% of the tax due
16        from such taxpayer under this Act during the period to be
17        covered by the annual return for each month  or  fraction
18        of  a  month  until such return is filed as required, the
19        penalty to be assessed and collected in the  same  manner
20        as any other penalty provided for in this Act.
21             (ii)  On  and  after  January  1, 1994, the taxpayer
22        shall be liable for a penalty as described in Section 3-4
23        of the Uniform Penalty and Interest Act.
24        The chief executive officer, proprietor, owner or highest
25    ranking manager shall sign the annual return to  certify  the
26    accuracy  of  the information contained therein.   Any person
27    who willfully signs the annual  return  containing  false  or
28    inaccurate   information  shall  be  guilty  of  perjury  and
29    punished accordingly.  The annual return form  prescribed  by
30    the  Department  shall  include  a  warning  that  the person
31    signing the return may be liable for perjury.
32        The provisions of this Section concerning the  filing  of
33    an  annual  information return do not apply to a retailer who
34    is not required to file an income tax return with the  United
 
                            -72-               LRB9110257SMdv
 1    States Government.
 2        As  soon  as  possible after the first day of each month,
 3    upon  certification  of  the  Department  of   Revenue,   the
 4    Comptroller  shall  order transferred and the Treasurer shall
 5    transfer from the General Revenue Fund to the Motor Fuel  Tax
 6    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
 7    realized under this  Act  for  the  second  preceding  month.
 8    Beginning  April 1, 2000, this transfer is no longer required
 9    and shall not be made.
10        Net revenue realized for a month  shall  be  the  revenue
11    collected  by the State pursuant to this Act, less the amount
12    paid out during  that  month  as  refunds  to  taxpayers  for
13    overpayment of liability.
14        For  greater simplicity of administration, manufacturers,
15    importers and wholesalers whose products are sold  at  retail
16    in Illinois by numerous retailers, and who wish to do so, may
17    assume  the  responsibility  for accounting and paying to the
18    Department all tax accruing under this Act  with  respect  to
19    such  sales,  if  the  retailers who are affected do not make
20    written objection to the Department to this arrangement.
21        Any  person  who  promotes,  organizes,  provides  retail
22    selling space for concessionaires or other types  of  sellers
23    at the Illinois State Fair, DuQuoin State Fair, county fairs,
24    local  fairs, art shows, flea markets and similar exhibitions
25    or events, including any transient  merchant  as  defined  by
26    Section  2 of the Transient Merchant Act of 1987, is required
27    to file a report with the Department providing  the  name  of
28    the  merchant's  business,  the name of the person or persons
29    engaged in merchant's business,  the  permanent  address  and
30    Illinois  Retailers Occupation Tax Registration Number of the
31    merchant, the dates and  location  of  the  event  and  other
32    reasonable  information that the Department may require.  The
33    report must be filed not later than the 20th day of the month
34    next following the month during which the event  with  retail
 
                            -73-               LRB9110257SMdv
 1    sales  was  held.   Any  person  who  fails  to file a report
 2    required by this Section commits a business  offense  and  is
 3    subject to a fine not to exceed $250.
 4        Any  person  engaged  in the business of selling tangible
 5    personal property at retail as a concessionaire or other type
 6    of seller at the  Illinois  State  Fair,  county  fairs,  art
 7    shows, flea markets and similar exhibitions or events, or any
 8    transient merchants, as defined by Section 2 of the Transient
 9    Merchant  Act of 1987, may be required to make a daily report
10    of the amount of such sales to the Department and to  make  a
11    daily  payment of the full amount of tax due.  The Department
12    shall impose this requirement when it finds that there  is  a
13    significant  risk  of loss of revenue to the State at such an
14    exhibition or event.   Such  a  finding  shall  be  based  on
15    evidence  that  a  substantial  number  of concessionaires or
16    other sellers who are  not  residents  of  Illinois  will  be
17    engaging   in  the  business  of  selling  tangible  personal
18    property at retail at  the  exhibition  or  event,  or  other
19    evidence  of  a  significant  risk  of loss of revenue to the
20    State.  The Department shall notify concessionaires and other
21    sellers affected by the imposition of this  requirement.   In
22    the   absence   of   notification   by  the  Department,  the
23    concessionaires and other sellers shall file their returns as
24    otherwise required in this Section.
25    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
26    91-37,  eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,   eff.
27    7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)

28        Section  25.   The  Counties  Code is amended by changing
29    Sections 5-1006, 5-1006.5, 5-1007, and 5-1035.1 as follows:

30        (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
31        Sec. 5-1006.  Home Rule County Retailers' Occupation  Tax
32    Law.  Any  county  that  is a home rule unit may impose a tax
 
                            -74-               LRB9110257SMdv
 1    upon all persons engaged in the business of selling  tangible
 2    personal  property,  other  than an item of tangible personal
 3    property titled or registered with an agency of this  State's
 4    government,  at  retail  in  the county on the gross receipts
 5    from such sales made in the course  of  their  business.   If
 6    imposed,  this  tax shall only be imposed in 1/4% increments.
 7    On and after September 1, 1991, this additional tax  may  not
 8    be  imposed  on the sales of food for human consumption which
 9    is to be consumed off the premises where it  is  sold  (other
10    than alcoholic beverages, soft drinks and food which has been
11    prepared  for  immediate  consumption)  and  prescription and
12    nonprescription  medicines,  drugs,  medical  appliances  and
13    insulin, urine testing materials, syringes and  needles  used
14    by  diabetics. The tax imposed by a home rule county pursuant
15    to this Section and all civil penalties that may be  assessed
16    as an incident thereof shall be collected and enforced by the
17    State Department of Revenue.  The certificate of registration
18    that  is  issued  by  the  Department to a retailer under the
19    Retailers' Occupation Tax Act shall permit  the  retailer  to
20    engage  in  a business that is taxable under any ordinance or
21    resolution  enacted  pursuant   to   this   Section   without
22    registering   separately   with  the  Department  under  such
23    ordinance  or  resolution  or  under   this   Section.    The
24    Department  shall  have  full power to administer and enforce
25    this  Section;  to  collect  all  taxes  and  penalties   due
26    hereunder;  to dispose of taxes and penalties so collected in
27    the manner hereinafter provided; and to determine all  rights
28    to  credit  memoranda  arising  on  account  of the erroneous
29    payment of tax or penalty hereunder.  In  the  administration
30    of,  and  compliance  with,  this Section, the Department and
31    persons who are subject to this Section shall have  the  same
32    rights,  remedies, privileges, immunities, powers and duties,
33    and  be  subject  to  the  same   conditions,   restrictions,
34    limitations,  penalties  and definitions of terms, and employ
 
                            -75-               LRB9110257SMdv
 1    the same modes of procedure, as are prescribed in Sections 1,
 2    1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65  (in
 3    respect  to  all provisions therein other than the State rate
 4    of tax), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,  5i,  5j,  5k,
 5    5l,  6,  6a,  6b,  6c,  7,  8,  9,  10,  11, 12 and 13 of the
 6    Retailers' Occupation Tax Act and Section 3-7 of the  Uniform
 7    Penalty  and  Interest  Act,  as fully as if those provisions
 8    were set forth herein.
 9        No tax may be imposed by a home rule county  pursuant  to
10    this Section unless the county also imposes a tax at the same
11    rate pursuant to Section 5-1007.
12        A  home rule county that has not imposed a tax under this
13    Section on the sale of  motor  fuel  or  gasohol  before  the
14    effective  date  of  this  amendatory Act of the 91st General
15    Assembly shall not impose such a tax on or after that date. A
16    home rule county that has imposed a tax under this Section on
17    the sale of motor fuel or gasohol before the  effective  date
18    of this amendatory Act of the 91st General Assembly shall not
19    increase  the  rate  of  the  tax on or after that date. This
20    amendatory Act of the 91st General Assembly is a  denial  and
21    limitation of home rule powers to tax under subsection (g) of
22    Section 6 of Article VII of the Illinois Constitution.
23        Persons  subject  to  any  tax  imposed  pursuant  to the
24    authority granted in this Section  may  reimburse  themselves
25    for  their  seller's  tax  liability  hereunder by separately
26    stating such tax as an additional charge, which charge may be
27    stated in combination, in a single  amount,  with  State  tax
28    which  sellers are required to collect under the Use Tax Act,
29    pursuant to such bracket  schedules  as  the  Department  may
30    prescribe.
31        Whenever  the  Department determines that a refund should
32    be made under this Section to a claimant instead of issuing a
33    credit memorandum, the  Department  shall  notify  the  State
34    Comptroller,  who  shall  cause the order to be drawn for the
 
                            -76-               LRB9110257SMdv
 1    amount specified and to the person named in the  notification
 2    from  the  Department.  The refund shall be paid by the State
 3    Treasurer out of the home rule county  retailers'  occupation
 4    tax fund.
 5        The  Department  shall  forthwith  pay  over to the State
 6    Treasurer, ex officio, as trustee, all  taxes  and  penalties
 7    collected  hereunder.   On  or  before  the  25th day of each
 8    calendar month, the Department shall prepare and  certify  to
 9    the  Comptroller  the disbursement of stated sums of money to
10    named counties, the counties to be those from which retailers
11    have paid taxes or  penalties  hereunder  to  the  Department
12    during the second preceding calendar month.  The amount to be
13    paid to each county shall be the amount (not including credit
14    memoranda)  collected  hereunder  during the second preceding
15    calendar  month  by  the  Department  plus  an   amount   the
16    Department determines is necessary to offset any amounts that
17    were  erroneously  paid  to  a different taxing body, and not
18    including an amount equal  to  the  amount  of  refunds  made
19    during  the second preceding calendar month by the Department
20    on behalf of such county, and not including any amount  which
21    the  Department determines is necessary to offset any amounts
22    which were payable  to  a  different  taxing  body  but  were
23    erroneously paid to the county. Within 10 days after receipt,
24    by  the Comptroller, of the disbursement certification to the
25    counties provided for in this Section  to  be  given  to  the
26    Comptroller  by  the  Department, the Comptroller shall cause
27    the  orders  to  be  drawn  for  the  respective  amounts  in
28    accordance   with   the   directions   contained    in    the
29    certification.
30        In addition to the disbursement required by the preceding
31    paragraph,  an allocation shall be made in March of each year
32    to  each  county  that  received  more   than   $500,000   in
33    disbursements  under the preceding paragraph in the preceding
34    calendar year.  The allocation shall be in an amount equal to
 
                            -77-               LRB9110257SMdv
 1    the average monthly distribution made  to  each  such  county
 2    under  the  preceding paragraph during the preceding calendar
 3    year (excluding the  2  months  of  highest  receipts).   The
 4    distribution  made  in  March  of each year subsequent to the
 5    year in  which  an  allocation  was  made  pursuant  to  this
 6    paragraph and the preceding paragraph shall be reduced by the
 7    amount  allocated  and  disbursed under this paragraph in the
 8    preceding calendar year.  The Department  shall  prepare  and
 9    certify  to  the Comptroller for disbursement the allocations
10    made in accordance with this paragraph.
11        For the purpose of  determining  the  local  governmental
12    unit  whose tax is applicable, a retail sale by a producer of
13    coal or other mineral mined in Illinois is a sale  at  retail
14    at  the  place  where  the  coal  or  other  mineral mined in
15    Illinois is extracted from the earth.   This  paragraph  does
16    not  apply  to  coal or other mineral when it is delivered or
17    shipped by the seller to the purchaser  at  a  point  outside
18    Illinois  so  that the sale is exempt under the United States
19    Constitution as a sale in interstate or foreign commerce.
20        Nothing in this Section shall be construed to authorize a
21    county to impose a tax upon the privilege of engaging in  any
22    business  which  under  the Constitution of the United States
23    may not be made the subject of taxation by this State.
24        An ordinance or resolution imposing  or  discontinuing  a
25    tax hereunder or effecting a change in the rate thereof shall
26    be  adopted  and  a  certified  copy  thereof  filed with the
27    Department on or before the first day of June, whereupon  the
28    Department  shall  proceed  to  administer  and  enforce this
29    Section as of the first day of September next following  such
30    adoption  and filing. Beginning January 1, 1992, an ordinance
31    or resolution imposing or discontinuing the tax hereunder  or
32    effecting a change in the rate thereof shall be adopted and a
33    certified copy thereof filed with the Department on or before
34    the first day of July, whereupon the Department shall proceed
 
                            -78-               LRB9110257SMdv
 1    to administer and enforce this Section as of the first day of
 2    October  next  following  such adoption and filing. Beginning
 3    January 1, 1993,  an  ordinance  or  resolution  imposing  or
 4    discontinuing  the tax hereunder or effecting a change in the
 5    rate thereof shall be adopted and a  certified  copy  thereof
 6    filed  with  the  Department  on  or  before the first day of
 7    October, whereupon the Department shall proceed to administer
 8    and enforce this Section as of the first day of January  next
 9    following  such adoption and filing. Beginning April 1, 1998,
10    an ordinance or resolution imposing or discontinuing the  tax
11    hereunder  or  effecting  a  change in the rate thereof shall
12    either (i) be adopted and a certified copy thereof filed with
13    the Department on or before the first day of April, whereupon
14    the Department shall proceed to administer and  enforce  this
15    Section  as  of  the  first  day  of  July next following the
16    adoption and filing; or (ii) be adopted and a certified  copy
17    thereof  filed with the Department on or before the first day
18    of  October,  whereupon  the  Department  shall  proceed   to
19    administer  and  enforce  this Section as of the first day of
20    January next following the adoption and filing.
21        When certifying the amount of a monthly disbursement to a
22    county under this Section, the Department shall  increase  or
23    decrease  such  amount  by  an amount necessary to offset any
24    misallocation of previous disbursements.  The  offset  amount
25    shall be the amount erroneously disbursed within the previous
26    6 months from the time a misallocation is discovered.
27        This  Section shall be known and may be cited as the Home
28    Rule County Retailers' Occupation Tax Law.
29    (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)

30        (55 ILCS 5/5-1006.5)
31        Sec. 5-1006.5.  Special County Retailers' Occupation  Tax
32    For Public Safety.
33        (a)  The county board of any county may impose a tax upon
 
                            -79-               LRB9110257SMdv
 1    all  persons  engaged  in  the  business  of selling tangible
 2    personal property, other than  personal  property  titled  or
 3    registered  with  an  agency  of  this State's government, at
 4    retail in the county on the gross  receipts  from  the  sales
 5    made  in the course of business to provide revenue to be used
 6    exclusively for public safety purposes in that county,  if  a
 7    proposition for the tax has been submitted to the electors of
 8    that county and approved by a majority of those voting on the
 9    question.   If  imposed,  this  tax  shall be imposed only in
10    one-quarter percent increments.  By  resolution,  the  county
11    board  may  order  the  proposition  to  be  submitted at any
12    election.  The county clerk shall certify the question to the
13    proper election authority, who shall submit  the  proposition
14    at an election in accordance with the general election law.
15        The  proposition  shall be in substantially the following
16    form:
17             "Shall (name of county) be authorized  to  impose  a
18        public  safety  tax  at the rate of .... upon all persons
19        engaged in the  business  of  selling  tangible  personal
20        property  at  retail in the county on gross receipts from
21        the sales made in the course of their business to be used
22        for crime prevention, detention, and other public  safety
23        purposes?"
24    Votes  shall  be recorded as Yes or No.  If a majority of the
25    electors voting on the proposition vote in favor of  it,  the
26    county may impose the tax.
27        This  additional  tax  may not be imposed on the sales of
28    food for human consumption that is to  be  consumed  off  the
29    premises  where  it  is sold (other than alcoholic beverages,
30    soft drinks, and food which has been prepared  for  immediate
31    consumption) and prescription and non-prescription medicines,
32    drugs,   medical   appliances   and  insulin,  urine  testing
33    materials, syringes, and needles used by diabetics.  The  tax
34    imposed  by  a  county  under  this  Section  and  all  civil
 
                            -80-               LRB9110257SMdv
 1    penalties  that  may  be  assessed  as an incident of the tax
 2    shall be collected and enforced by the Illinois Department of
 3    Revenue.  The certificate of registration that is  issued  by
 4    the  Department to a retailer under the Retailers' Occupation
 5    Tax Act shall permit the retailer to  engage  in  a  business
 6    that  is  taxable  without  registering  separately  with the
 7    Department  under  an  ordinance  or  resolution  under  this
 8    Section.  The Department has full  power  to  administer  and
 9    enforce  this Section, to collect all taxes and penalties due
10    under this Section, to dispose  of  taxes  and  penalties  so
11    collected  in  the  manner  provided  in this Section, and to
12    determine all rights to credit memoranda arising  on  account
13    of  the  erroneous  payment  of  a  tax or penalty under this
14    Section.  In the administration of and compliance  with  this
15    Section,  the  Department and persons who are subject to this
16    Section shall (i) have the same rights, remedies, privileges,
17    immunities, powers, and duties, (ii) be subject to  the  same
18    conditions,   restrictions,   limitations,   penalties,   and
19    definitions  of  terms,  and  (iii)  employ the same modes of
20    procedure as are prescribed in Sections 1, 1a, 1a-1, 1d,  1e,
21    1f,  1i,  1j,  1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to
22    all provisions contained in those  Sections  other  than  the
23    State  rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except
24    provisions  relating  to  transaction  returns  and   quarter
25    monthly  payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
26    5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12,  and  13
27    of  the  Retailers' Occupation Tax Act and Section 3-7 of the
28    Uniform Penalty and Interest Act as if those provisions  were
29    set forth in this Section.
30        A county that has not imposed a tax under this subsection
31    on  the  sale  of  motor fuel or gasohol before the effective
32    date of this amendatory Act  of  the  91st  General  Assembly
33    shall  not impose such a tax on or after that date.  A county
34    that has imposed a tax under this subsection on the  sale  of
 
                            -81-               LRB9110257SMdv
 1    motor  fuel  or  gasohol  before  the  effective date of this
 2    amendatory  Act  of  the  91st  General  Assembly  shall  not
 3    increase the rate of the tax on or after that date.
 4        Persons subject to any tax imposed  under  the  authority
 5    granted  in  this  Section may reimburse themselves for their
 6    sellers' tax liability by separately stating the  tax  as  an
 7    additional charge, which charge may be stated in combination,
 8    in a single amount, with State tax which sellers are required
 9    to  collect under the Use Tax Act, pursuant to such bracketed
10    schedules as the Department may prescribe.
11        Whenever the Department determines that a  refund  should
12    be made under this Section to a claimant instead of issuing a
13    credit  memorandum,  the  Department  shall  notify the State
14    Comptroller, who shall cause the order to be  drawn  for  the
15    amount  specified and to the person named in the notification
16    from the Department.  The refund shall be paid by  the  State
17    Treasurer   out   of  the  County  Public  Safety  Retailers'
18    Occupation Tax Fund.
19        (b)  If a tax has been imposed under  subsection  (a),  a
20    service occupation tax shall also be imposed at the same rate
21    upon  all  persons engaged, in the county, in the business of
22    making sales of service, who, as an incident to making  those
23    sales  of service, transfer tangible personal property within
24    the county as an incident to a sale of service. This tax  may
25    not be imposed on sales of food for human consumption that is
26    to  be consumed off the premises where it is sold (other than
27    alcoholic beverages,  soft  drinks,  and  food  prepared  for
28    immediate  consumption) and prescription and non-prescription
29    medicines,  drugs,  medical  appliances  and  insulin,  urine
30    testing materials, syringes, and needles used  by  diabetics.
31    The tax imposed under this subsection and all civil penalties
32    that  may  be  assessed  as  an  incident  thereof  shall  be
33    collected  and  enforced  by  the  Department of Revenue. The
34    Department has full power  to  administer  and  enforce  this
 
                            -82-               LRB9110257SMdv
 1    subsection; to collect all taxes and penalties due hereunder;
 2    to  dispose of taxes and penalties so collected in the manner
 3    hereinafter provided; and to determine all rights  to  credit
 4    memoranda  arising on account of the erroneous payment of tax
 5    or  penalty  hereunder.    In  the  administration  of,   and
 6    compliance  with  this subsection, the Department and persons
 7    who are subject to this paragraph shall  (i)  have  the  same
 8    rights, remedies, privileges, immunities, powers, and duties,
 9    (ii)   be  subject  to  the  same  conditions,  restrictions,
10    limitations,   penalties,   exclusions,    exemptions,    and
11    definitions  of  terms,  and  (iii)  employ the same modes of
12    procedure as are prescribed in Sections 2  (except  that  the
13    reference  to State in the definition of supplier maintaining
14    a place of business in this State shall mean the county), 2a,
15    2b, 2c, 3 through 3-50 (in respect to all provisions  therein
16    other  than  the  State  rate  of  tax),  4  (except that the
17    reference to the State shall be  to  the  county),  5,  7,  8
18    (except  that  the  jurisdiction  to which the tax shall be a
19    debt to the extent indicated in that Section 8 shall  be  the
20    county),  9  (except  as  to  the  disposition  of  taxes and
21    penalties  collected),  10,  11,  12  (except  the  reference
22    therein to Section 2b of the Retailers' Occupation Tax  Act),
23    13  (except  that  any  reference to the State shall mean the
24    county), Section 15, 16, 17, 18, 19 and  20  of  the  Service
25    Occupation Tax Act and Section 3-7 of the Uniform Penalty and
26    Interest  Act, as fully as if those provisions were set forth
27    herein.
28        A county that has not imposed a tax under this subsection
29    on the selling price of motor  fuel  or  gasohol  before  the
30    effective  date  of  this  amendatory Act of the 91st General
31    Assembly shall not impose such a tax on or after  that  date.
32    A  county that has imposed a tax under this subsection on the
33    selling price of motor fuel or gasahol before  the  effective
34    date  of  this  amendatory  Act  of the 91st General Assembly
 
                            -83-               LRB9110257SMdv
 1    shall not increase the rate of the tax on or after that date.
 2        Persons subject to any tax imposed  under  the  authority
 3    granted in this subsection may reimburse themselves for their
 4    serviceman's  tax  liability by separately stating the tax as
 5    an  additional  charge,  which  charge  may  be   stated   in
 6    combination,   in  a  single  amount,  with  State  tax  that
 7    servicemen are authorized to collect under  the  Service  Use
 8    Tax  Act,  in  accordance  with such bracket schedules as the
 9    Department may prescribe.
10        Whenever the Department determines that a  refund  should
11    be  made  under  this  subsection  to  a  claimant instead of
12    issuing a credit memorandum, the Department shall notify  the
13    State  Comptroller,  who  shall cause the warrant to be drawn
14    for the amount specified, and to the  person  named,  in  the
15    notification  from  the Department.  The refund shall be paid
16    by the State  Treasurer  out  of  the  County  Public  Safety
17    Retailers' Occupation Fund.
18        Nothing   in   this  subsection  shall  be  construed  to
19    authorize the county to impose a tax upon  the  privilege  of
20    engaging  in any business which under the Constitution of the
21    United States may not be made the subject of taxation by  the
22    State.
23        (c)  The  Department  shall  immediately  pay over to the
24    State Treasurer,  ex  officio,  as  trustee,  all  taxes  and
25    penalties  collected  under this Section to be deposited into
26    the County Public  Safety  Retailers'  Occupation  Tax  Fund,
27    which  shall  be an unappropriated trust fund held outside of
28    the State treasury.  On  or  before  the  25th  day  of  each
29    calendar  month,  the Department shall prepare and certify to
30    the Comptroller the disbursement of stated sums of  money  to
31    the   counties  from  which  retailers  have  paid  taxes  or
32    penalties to  the  Department  during  the  second  preceding
33    calendar  month.   The amount to be paid to each county shall
34    be the amount  (not  including  credit  memoranda)  collected
 
                            -84-               LRB9110257SMdv
 1    under this Section during the second preceding calendar month
 2    by the Department plus an amount the Department determines is
 3    necessary to offset any amounts that were erroneously paid to
 4    a  different  taxing  body,  and  not including (i) an amount
 5    equal to  the  amount  of  refunds  made  during  the  second
 6    preceding  calendar  month by the Department on behalf of the
 7    county and (ii) any amount that the Department determines  is
 8    necessary  to  offset  any  amounts  that  were  payable to a
 9    different taxing  body  but  were  erroneously  paid  to  the
10    county.   Within  10 days after receipt by the Comptroller of
11    the disbursement certification to the counties  provided  for
12    in  this  Section  to  be  given  to  the  Comptroller by the
13    Department, the Comptroller shall  cause  the  orders  to  be
14    drawn   for   the   respective  amounts  in  accordance  with
15    directions contained in the certification.
16        In addition to the disbursement required by the preceding
17    paragraph, an allocation shall be made in March of each  year
18    to   each   county   that  received  more  than  $500,000  in
19    disbursements under the preceding paragraph in the  preceding
20    calendar year.  The allocation shall be in an amount equal to
21    the  average  monthly  distribution  made to each such county
22    under the preceding paragraph during the  preceding  calendar
23    year  (excluding  the  2  months  of  highest receipts).  The
24    distribution made in March of each  year  subsequent  to  the
25    year  in  which  an  allocation  was  made  pursuant  to this
26    paragraph and the preceding paragraph shall be reduced by the
27    amount allocated and disbursed under this  paragraph  in  the
28    preceding  calendar  year.   The Department shall prepare and
29    certify to the Comptroller for disbursement  the  allocations
30    made in accordance with this paragraph.
31        (d)  For   the   purpose   of   determining   the   local
32    governmental unit whose tax is applicable, a retail sale by a
33    producer  of  coal  or another mineral mined in Illinois is a
34    sale at retail at the place where the coal or  other  mineral
 
                            -85-               LRB9110257SMdv
 1    mined   in  Illinois  is  extracted  from  the  earth.   This
 2    paragraph does not apply to coal or another mineral  when  it
 3    is  delivered  or shipped by the seller to the purchaser at a
 4    point outside Illinois so that the sale is exempt  under  the
 5    United States Constitution as a sale in interstate or foreign
 6    commerce.
 7        (e)  Nothing  in  this  Section  shall  be  construed  to
 8    authorize  a  county  to  impose  a tax upon the privilege of
 9    engaging in any business that under the Constitution  of  the
10    United States may not be made the subject of taxation by this
11    State.
12        (e-5)  If  a county imposes a tax under this Section, the
13    county board may, by ordinance, discontinue or lower the rate
14    of the tax.  If the county  board  lowers  the  tax  rate  or
15    discontinues the tax, a referendum must be held in accordance
16    with  subsection (a) of this Section in order to increase the
17    rate of the tax or to reimpose the discontinued tax.
18        (f)  Beginning April 1, 1998, the results of any election
19    authorizing a proposition to impose a tax under this  Section
20    or  effecting  a  change in the rate of tax, or any ordinance
21    lowering  the  rate  or  discontinuing  the  tax,  shall   be
22    certified  by  the  county  clerk and filed with the Illinois
23    Department of Revenue either (i) on or before the  first  day
24    of   April,   whereupon   the  Department  shall  proceed  to
25    administer and enforce the tax as of the first  day  of  July
26    next following the filing; or (ii) on or before the first day
27    of   October,  whereupon  the  Department  shall  proceed  to
28    administer and enforce the tax as of the first day of January
29    next following the filing.
30        (g)  When certifying the amount of a monthly disbursement
31    to a county under this Section, the Department shall increase
32    or decrease the amounts by an amount necessary to offset  any
33    miscalculation  of previous disbursements.  The offset amount
34    shall be the amount erroneously disbursed within the previous
 
                            -86-               LRB9110257SMdv
 1    6 months from the time a miscalculation is discovered.
 2        (h)  This Section may be cited  as  the  "Special  County
 3    Occupation Tax For Public Safety Law".
 4        (i)  For   purposes  of  this  Section,  "public  safety"
 5    includes  but  is  not  limited  to  fire  fighting,  police,
 6    medical, ambulance, or other emergency services.
 7        (j)  This amendatory Act of the 91st General Assembly  is
 8    a  denial  and  limitation  of  home rule powers to tax under
 9    subsection (g) of Section 6 of Article VII  of  the  Illinois
10    Constitution.
11    (Source:  P.A.  89-107,  eff.  1-1-96;  89-718,  eff. 3-7-97;
12    90-190, eff. 7-24-97;  90-267,  eff.  7-30-97;  90-552,  eff.
13    12-12-97;   90-562,  eff.  12-16-97;  90-655,  eff.  7-30-98;
14    90-689, eff. 7-31-98.)

15        (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
16        Sec. 5-1007.  Home Rule  County  Service  Occupation  Tax
17    Law.  The  corporate  authorities  of  a home rule county may
18    impose a tax upon all persons engaged, in such county, in the
19    business of making sales of service at the same rate  of  tax
20    imposed  pursuant  to  Section 5-1006 of the selling price of
21    all tangible personal property transferred by such servicemen
22    either in the form of tangible personal property  or  in  the
23    form  of  real estate as an incident to a sale of service. If
24    imposed, such tax shall only be imposed in  1/4%  increments.
25    On  and  after September 1, 1991, this additional tax may not
26    be imposed on the sales of food for human  consumption  which
27    is  to  be  consumed off the premises where it is sold (other
28    than alcoholic beverages, soft drinks and food which has been
29    prepared for  immediate  consumption)  and  prescription  and
30    nonprescription  medicines,  drugs,  medical  appliances  and
31    insulin,  urine  testing materials, syringes and needles used
32    by diabetics. The tax imposed by a home rule county  pursuant
33    to  this Section and all civil penalties that may be assessed
 
                            -87-               LRB9110257SMdv
 1    as an incident thereof shall be collected and enforced by the
 2    State Department of Revenue. The certificate of  registration
 3    which  is  issued  by  the Department to a retailer under the
 4    Retailers' Occupation Tax Act or under the Service Occupation
 5    Tax Act shall permit such registrant to engage in a  business
 6    which  is  taxable  under any ordinance or resolution enacted
 7    pursuant to this Section without registering separately  with
 8    the  Department  under  such ordinance or resolution or under
 9    this Section.   The  Department  shall  have  full  power  to
10    administer and enforce this Section; to collect all taxes and
11    penalties due hereunder; to dispose of taxes and penalties so
12    collected   in   the  manner  hereinafter  provided;  and  to
13    determine all rights to credit memoranda arising  on  account
14    of the erroneous payment of tax or penalty hereunder.  In the
15    administration  of,  and  compliance  with,  this Section the
16    Department and persons who are subject to this Section  shall
17    have  the  same  rights,  remedies,  privileges,  immunities,
18    powers  and  duties,  and  be subject to the same conditions,
19    restrictions,  limitations,  penalties  and  definitions   of
20    terms,  and  employ  the  same  modes  of  procedure,  as are
21    prescribed in Sections  1a-1,  2,  2a,  3  through  3-50  (in
22    respect  to  all provisions therein other than the State rate
23    of tax), 4 (except that the reference to the State  shall  be
24    to  the taxing county), 5, 7, 8 (except that the jurisdiction
25    to which the tax shall be a debt to the extent  indicated  in
26    that  Section  8 shall be the taxing county), 9 (except as to
27    the disposition of taxes and penalties collected, and  except
28    that  the returned merchandise credit for this county tax may
29    not be taken against any State tax), 10, 11, 12  (except  the
30    reference  therein to Section 2b of the Retailers' Occupation
31    Tax Act), 13 (except that any reference to  the  State  shall
32    mean  the  taxing county), the first paragraph of Section 15,
33    16, 17, 18, 19 and 20 of the Service Occupation Tax  Act  and
34    Section 3-7 of the Uniform Penalty and Interest Act, as fully
 
                            -88-               LRB9110257SMdv
 1    as if those provisions were set forth herein.
 2        No  tax  may be imposed by a home rule county pursuant to
 3    this Section unless such county also imposes  a  tax  at  the
 4    same rate pursuant to Section 5-1006.
 5        A  home rule county that has not imposed a tax under this
 6    Section on the selling price of motor fuel or gasohol  before
 7    the effective date of this amendatory Act of the 91st General
 8    Assembly shall not impose such a tax on or after that date. A
 9    home rule county that has imposed a tax under this Section on
10    the  sale  of motor fuel or gasohol before the effective date
11    of this amendatory Act of the 91st General Assembly shall not
12    increase the rate of the tax on  or  after  that  date.  This
13    amendatory  Act  of  the  91st General Assembly is denial and
14    limitation of home rule powers to tax under subsection (g) of
15    Section 6 of Article VII of the Illinois Constitution.
16        Persons subject  to  any  tax  imposed  pursuant  to  the
17    authority  granted  in  this Section may reimburse themselves
18    for their serviceman's tax liability hereunder by  separately
19    stating such tax as an additional charge, which charge may be
20    stated  in  combination,  in  a single amount, with State tax
21    which servicemen are authorized to collect under the  Service
22    Use  Tax  Act,  pursuant  to  such  bracket  schedules as the
23    Department may prescribe.
24        Whenever the Department determines that a  refund  should
25    be  made  under this Section to a claimant instead of issuing
26    credit memorandum, the  Department  shall  notify  the  State
27    Comptroller,  who  shall  cause the order to be drawn for the
28    amount  specified,  and  to  the  person   named,   in   such
29    notification  from  the Department. Such refund shall be paid
30    by the State Treasurer out of the home rule county retailers'
31    occupation tax fund.
32        The Department shall forthwith  pay  over  to  the  State
33    Treasurer,  ex-officio,  as  trustee, all taxes and penalties
34    collected hereunder. On  or  before  the  25th  day  of  each
 
                            -89-               LRB9110257SMdv
 1    calendar  month,  the Department shall prepare and certify to
 2    the Comptroller the disbursement of stated sums of  money  to
 3    named counties, the counties to be those from which suppliers
 4    and  servicemen have paid taxes or penalties hereunder to the
 5    Department during the second preceding calendar  month.   The
 6    amount  to  be  paid  to each county shall be the amount (not
 7    including credit memoranda) collected  hereunder  during  the
 8    second  preceding  calendar  month by the Department, and not
 9    including an amount equal  to  the  amount  of  refunds  made
10    during  the second preceding calendar month by the Department
11    on behalf of such county.  Within 10 days after  receipt,  by
12    the  Comptroller,  of  the  disbursement certification to the
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        In addition to the disbursement required by the preceding
19    paragraph,  an  allocation shall be made in each year to each
20    county which received more  than  $500,000  in  disbursements
21    under the preceding paragraph in the preceding calendar year.
22    The  allocation  shall  be  in an amount equal to the average
23    monthly distribution made  to  each  such  county  under  the
24    preceding   paragraph  during  the  preceding  calendar  year
25    (excluding  the  2  months   of   highest   receipts).    The
26    distribution  made  in  March  of each year subsequent to the
27    year in  which  an  allocation  was  made  pursuant  to  this
28    paragraph and the preceding paragraph shall be reduced by the
29    amount  allocated  and  disbursed under this paragraph in the
30    preceding calendar year.  The Department  shall  prepare  and
31    certify  to  the Comptroller for disbursement the allocations
32    made in accordance with this paragraph.
33        Nothing in this Section shall be construed to authorize a
34    county to impose a tax upon the privilege of engaging in  any
 
                            -90-               LRB9110257SMdv
 1    business  which  under  the Constitution of the United States
 2    may not be made the subject of taxation by this State.
 3        An ordinance or resolution imposing  or  discontinuing  a
 4    tax hereunder or effecting a change in the rate thereof shall
 5    be  adopted  and  a  certified  copy  thereof  filed with the
 6    Department on or before the first day of June, whereupon  the
 7    Department  shall  proceed  to  administer  and  enforce this
 8    Section as of the first day of September next following  such
 9    adoption  and filing. Beginning January 1, 1992, an ordinance
10    or resolution imposing or discontinuing the tax hereunder  or
11    effecting a change in the rate thereof shall be adopted and a
12    certified copy thereof filed with the Department on or before
13    the first day of July, whereupon the Department shall proceed
14    to administer and enforce this Section as of the first day of
15    October  next  following  such adoption and filing. Beginning
16    January 1, 1993,  an  ordinance  or  resolution  imposing  or
17    discontinuing  the tax hereunder or effecting a change in the
18    rate thereof shall be adopted and a  certified  copy  thereof
19    filed  with  the  Department  on  or  before the first day of
20    October, whereupon the Department shall proceed to administer
21    and enforce this Section as of the first day of January  next
22    following such adoption and filing.  Beginning April 1, 1998,
23    an  ordinance or resolution imposing or discontinuing the tax
24    hereunder or effecting a change in  the  rate  thereof  shall
25    either (i) be adopted and a certified copy thereof filed with
26    the Department on or before the first day of April, whereupon
27    the  Department  shall proceed to administer and enforce this
28    Section as of the  first  day  of  July  next  following  the
29    adoption  and filing; or (ii) be adopted and a certified copy
30    thereof filed with the Department on or before the first  day
31    of   October,  whereupon  the  Department  shall  proceed  to
32    administer and enforce this Section as of the  first  day  of
33    January next following the adoption and filing.
34        This  Section shall be known and may be cited as the Home
 
                            -91-               LRB9110257SMdv
 1    Rule County Service Occupation Tax Law.
 2    (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)

 3        (55 ILCS 5/5-1035.1) (from Ch. 34, par. 5-1035.1)
 4        Sec. 5-1035.1.  County Motor Fuel  Tax  Law.  The  county
 5    board  of the counties of DuPage, Kane and McHenry may, by an
 6    ordinance or resolution adopted by an affirmative vote  of  a
 7    majority  of  the  members elected or appointed to the county
 8    board, impose a tax upon all persons engaged in the county in
 9    the business of selling  motor  fuel,  as  now  or  hereafter
10    defined  in  the  Motor  Fuel  Tax  Law,  at  retail  for the
11    operation of motor vehicles upon public highways or  for  the
12    operation  of  recreational  watercraft  upon waterways. Kane
13    County may exempt diesel fuel from the tax  imposed  pursuant
14    to  this  Section.   The  tax  may  be  imposed, in half-cent
15    increments, at a rate  not  exceeding 4 cents per  gallon  of
16    motor  fuel  sold at retail within the county for the purpose
17    of use or consumption and not for the purpose of resale.  The
18    proceeds  from the tax shall be used by the county solely for
19    the purpose of operating, constructing and  improving  public
20    highways  and  waterways,  and  acquiring  real  property and
21    right-of-ways for public highways and  waterways  within  the
22    county imposing the tax.
23        A  county  that  has not imposed a tax under this Section
24    before the effective date of this amendatory Act of the  91st
25    General Assembly shall not impose such a tax on or after that
26    date.   A  county  that  has imposed a tax under this Section
27    before the effective date of this amendatory Act of the  91st
28    General Assembly shall not increase the rate of the tax on or
29    after that date.
30        A  tax  imposed  pursuant  to this Section, and all civil
31    penalties that may be assessed as an incident thereof,  shall
32    be  administered,  collected  and  enforced  by  the Illinois
33    Department of Revenue in the same manner as the  tax  imposed
 
                            -92-               LRB9110257SMdv
 1    under  the Retailers' Occupation Tax Act, as now or hereafter
 2    amended, insofar as may be practicable; except  that  in  the
 3    event of a conflict with the provisions of this Section, this
 4    Section  shall  control. The Department of Revenue shall have
 5    full power:  to  administer  and  enforce  this  Section;  to
 6    collect  all taxes and penalties due hereunder; to dispose of
 7    taxes and penalties so collected in  the  manner  hereinafter
 8    provided;  and  to  determine  all rights to credit memoranda
 9    arising on account of the erroneous payment of tax or penalty
10    hereunder.
11        Whenever the Department determines that a refund shall be
12    made under this Section to a claimant instead  of  issuing  a
13    credit  memorandum,  the  Department  shall  notify the State
14    Comptroller, who shall cause the order to be  drawn  for  the
15    amount   specified,   and   to   the  person  named,  in  the
16    notification from the Department. The refund shall be paid by
17    the State Treasurer out of the County Option Motor  Fuel  Tax
18    Fund.
19        The  Department  shall  forthwith  pay  over to the State
20    Treasurer, ex-officio, as trustee, all  taxes  and  penalties
21    collected hereunder, which shall be deposited into the County
22    Option  Motor  Fuel  Tax  Fund,  a  special fund in the State
23    Treasury which is hereby created. On or before the  25th  day
24    of  each  calendar  month,  the  Department shall prepare and
25    certify to the State Comptroller the disbursement  of  stated
26    sums of money to named counties for which taxpayers have paid
27    taxes  or  penalties  hereunder  to the Department during the
28    second preceding calendar month. The amount  to  be  paid  to
29    each  county  shall  be  the  amount  (not  including  credit
30    memoranda)  collected  hereunder  from  retailers  within the
31    county during the second  preceding  calendar  month  by  the
32    Department,  but  not including an amount equal to the amount
33    of refunds made during the second preceding calendar month by
34    the Department on behalf  of  the  county;  less  the  amount
 
                            -93-               LRB9110257SMdv
 1    expended  during the second preceding month by the Department
 2    pursuant to appropriation from the County Option  Motor  Fuel
 3    Tax  Fund  for  the  administration  and  enforcement of this
 4    Section, which appropriation shall not  exceed  $200,000  for
 5    fiscal  year  1990  and,  for each year thereafter, shall not
 6    exceed 2% of the amount  deposited  into  the  County  Option
 7    Motor Fuel Tax Fund during the preceding fiscal year.
 8        Nothing in this Section shall be construed to authorize a
 9    county  to impose a tax upon the privilege of engaging in any
10    business which under the Constitution of  the  United  States
11    may not be made the subject of taxation by this State.
12        An  ordinance  or  resolution imposing a tax hereunder or
13    effecting a change in the rate thereof shall be effective  on
14    the first day of the second calendar month next following the
15    month  in  which the ordinance or resolution is adopted and a
16    certified copy  thereof  is  filed  with  the  Department  of
17    Revenue,   whereupon  the Department of Revenue shall proceed
18    to administer and enforce  this  Section  on  behalf  of  the
19    county   as  of  the  effective  date  of  the  ordinance  or
20    resolution. Upon a change in rate of a tax levied  hereunder,
21    or  upon  the  discontinuance of the tax, the county board of
22    the county shall, on or not  later  than  5  days  after  the
23    effective  date  of the ordinance or resolution discontinuing
24    the tax or effecting  a  change  in  rate,  transmit  to  the
25    Department  of  Revenue  a certified copy of the ordinance or
26    resolution effecting the change or discontinuance.
27        This Section shall be known  and  may  be  cited  as  the
28    County Motor Fuel Tax Law.
29    (Source: P.A. 86-1028; 87-289.)

30        Section  30.   The  Illinois Municipal Code is amended by
31    changing  Sections  8-11-1,  8-11-1.1,  8-11-5,  8-11-6,  and
32    8-11-15 as follows:
 
                            -94-               LRB9110257SMdv
 1        (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
 2        Sec. 8-11-1.  Home Rule Municipal  Retailers'  Occupation
 3    Tax   Act.    The   corporate  authorities  of  a  home  rule
 4    municipality may impose a tax upon all persons engaged in the
 5    business of selling tangible personal property, other than an
 6    item of tangible personal property titled or registered  with
 7    an  agency  of  this  State's  government,  at  retail in the
 8    municipality on the gross receipts from these sales  made  in
 9    the  course of such business.  If imposed, the tax shall only
10    be imposed in 1/4% increments.  On  and  after  September  1,
11    1991,  this additional tax may not be imposed on the sales of
12    food for human consumption that is to  be  consumed  off  the
13    premises  where  it  is sold (other than alcoholic beverages,
14    soft drinks and food that has  been  prepared  for  immediate
15    consumption)  and prescription and nonprescription medicines,
16    drugs,  medical  appliances  and   insulin,   urine   testing
17    materials,  syringes  and  needles used by diabetics. The tax
18    imposed by a home rule municipality under  this  Section  and
19    all  civil  penalties  that may be assessed as an incident of
20    the  tax  shall  be  collected  and  enforced  by  the  State
21    Department of Revenue.  The certificate of registration  that
22    is   issued  by  the  Department  to  a  retailer  under  the
23    Retailers' Occupation Tax Act shall permit  the  retailer  to
24    engage  in  a business that is taxable under any ordinance or
25    resolution  enacted  pursuant   to   this   Section   without
26    registering   separately   with  the  Department  under  such
27    ordinance  or  resolution  or  under   this   Section.    The
28    Department  shall  have  full power to administer and enforce
29    this  Section;  to  collect  all  taxes  and  penalties   due
30    hereunder;  to dispose of taxes and penalties so collected in
31    the manner hereinafter provided; and to determine all  rights
32    to  credit  memoranda  arising  on  account  of the erroneous
33    payment of tax or penalty hereunder.  In  the  administration
34    of,  and  compliance  with,  this  Section the Department and
 
                            -95-               LRB9110257SMdv
 1    persons who are subject to this Section shall have  the  same
 2    rights,  remedies, privileges, immunities, powers and duties,
 3    and  be  subject  to  the  same   conditions,   restrictions,
 4    limitations,  penalties  and definitions of terms, and employ
 5    the same modes of procedure, as are prescribed in Sections 1,
 6    1a, 1d, 1e, 1f, 1i, 1j,  1k,  1m,  1n,  2  through  2-65  (in
 7    respect  to  all provisions therein other than the State rate
 8    of tax), 2c, 3 (except as to the  disposition  of  taxes  and
 9    penalties  collected),  4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
10    5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13  of
11    the  Retailers'  Occupation  Tax  Act  and Section 3-7 of the
12    Uniform Penalty and  Interest  Act,  as  fully  as  if  those
13    provisions were set forth herein.
14        No  tax  may be imposed by a home rule municipality under
15    this Section unless the municipality also imposes  a  tax  at
16    the same rate under Section 8-11-5 of this Act.
17        A home rule municipality that has not imposed a tax under
18    this  Section on the sale of motor fuel or gasohol before the
19    effective date of this amendatory Act  of  the  91st  General
20    Assembly shall not impose such a tax on or after that date. A
21    home  rule  municipality  that  has  imposed a tax under this
22    Section on the sale of  motor  fuel  or  gasohol  before  the
23    effective  date  of  this  amendatory Act of the 91st General
24    Assembly shall not increase the rate of the tax on  or  after
25    that  date.  This amendatory Act of the 91st General Assembly
26    is a denial and limitation of home rule powers to  tax  under
27    subsection  (g)  of  Section 6 of Article VII of the Illinois
28    Constitution.
29        Persons subject to any tax imposed  under  the  authority
30    granted  in  this  Section may reimburse themselves for their
31    seller's tax liability hereunder by separately  stating  that
32    tax  as  an  additional charge, which charge may be stated in
33    combination, in a single amount, with State tax which sellers
34    are required to collect under the Use Tax  Act,  pursuant  to
 
                            -96-               LRB9110257SMdv
 1    such bracket schedules as the Department may prescribe.
 2        Whenever  the  Department determines that a refund should
 3    be made under this Section to a claimant instead of issuing a
 4    credit memorandum, the  Department  shall  notify  the  State
 5    Comptroller,  who  shall  cause the order to be drawn for the
 6    amount specified and to the person named in the  notification
 7    from  the  Department.  The refund shall be paid by the State
 8    Treasurer  out  of  the  home   rule   municipal   retailers'
 9    occupation tax fund.
10        The  Department  shall  immediately pay over to the State
11    Treasurer, ex officio, as trustee, all  taxes  and  penalties
12    collected  hereunder.   On  or  before  the  25th day of each
13    calendar month, the Department shall prepare and  certify  to
14    the  Comptroller  the disbursement of stated sums of money to
15    named municipalities, the municipalities  to  be  those  from
16    which retailers have paid taxes or penalties hereunder to the
17    Department  during  the  second preceding calendar month. The
18    amount to be paid to each municipality shall  be  the  amount
19    (not  including  credit memoranda) collected hereunder during
20    the second preceding calendar month by the Department plus an
21    amount the Department determines is necessary to  offset  any
22    amounts  that  were  erroneously  paid  to a different taxing
23    body, and not including an amount  equal  to  the  amount  of
24    refunds  made  during  the second preceding calendar month by
25    the Department  on  behalf  of  such  municipality,  and  not
26    including  any  amount  that  the  Department  determines  is
27    necessary  to  offset  any  amounts  that  were  payable to a
28    different taxing  body  but  were  erroneously  paid  to  the
29    municipality. Within 10 days after receipt by the Comptroller
30    of  the  disbursement  certification  to  the  municipalities
31    provided  for  in this Section to be given to the Comptroller
32    by the Department, the Comptroller shall cause the orders  to
33    be  drawn  for  the respective amounts in accordance with the
34    directions contained in the certification.
 
                            -97-               LRB9110257SMdv
 1        In addition to the disbursement required by the preceding
 2    paragraph  and  in  order  to  mitigate  delays   caused   by
 3    distribution  procedures,  an allocation shall, if requested,
 4    be made within  10  days  after  January  14,  1991,  and  in
 5    November   of   1991   and  each  year  thereafter,  to  each
 6    municipality that received  more  than  $500,000  during  the
 7    preceding  fiscal  year,  (July  1  through  June 30) whether
 8    collected by the municipality or disbursed by the  Department
 9    as required by this Section. Within 10 days after January 14,
10    1991,   participating   municipalities   shall   notify   the
11    Department  in  writing  of  their intent to participate.  In
12    addition,  for  the   initial   distribution,   participating
13    municipalities  shall  certify  to the Department the amounts
14    collected by the municipality for each month under  its  home
15    rule  occupation and service occupation tax during the period
16    July 1, 1989 through June 30, 1990.  The allocation within 10
17    days after January 14, 1991, shall be in an amount  equal  to
18    the  monthly average of these amounts, excluding the 2 months
19    of highest receipts. The monthly average for  the  period  of
20    July  1,  1990  through  June  30, 1991 will be determined as
21    follows:  the amounts collected by the municipality under its
22    home rule occupation and service occupation  tax  during  the
23    period  of  July  1,  1990  through  September 30, 1990, plus
24    amounts  collected  by  the  Department  and  paid  to   such
25    municipality through June 30, 1991, excluding the 2 months of
26    highest  receipts.   The  monthly average for each subsequent
27    period of July 1 through June 30 shall be an amount equal  to
28    the monthly distribution made to each such municipality under
29    the  preceding  paragraph during this period, excluding the 2
30    months  of  highest  receipts.   The  distribution  made   in
31    November  1991  and each year thereafter under this paragraph
32    and the preceding paragraph shall be reduced  by  the  amount
33    allocated and disbursed under this paragraph in the preceding
34    period  of  July  1  through  June  30.  The Department shall
 
                            -98-               LRB9110257SMdv
 1    prepare and certify to the Comptroller for  disbursement  the
 2    allocations made in accordance with this paragraph.
 3        For  the  purpose  of  determining the local governmental
 4    unit whose tax is applicable, a retail sale by a producer  of
 5    coal  or  other mineral mined in Illinois is a sale at retail
 6    at the place  where  the  coal  or  other  mineral  mined  in
 7    Illinois  is  extracted  from the earth.  This paragraph does
 8    not apply to coal or other mineral when it  is  delivered  or
 9    shipped  by  the  seller  to the purchaser at a point outside
10    Illinois so that the sale is exempt under the  United  States
11    Constitution as a sale in interstate or foreign commerce.
12        Nothing in this Section shall be construed to authorize a
13    municipality  to  impose a tax upon the privilege of engaging
14    in any business which under the Constitution  of  the  United
15    States may not be made the subject of taxation by this State.
16        An  ordinance  or  resolution imposing or discontinuing a
17    tax hereunder or effecting a change in the rate thereof shall
18    be adopted and  a  certified  copy  thereof  filed  with  the
19    Department  on or before the first day of June, whereupon the
20    Department shall  proceed  to  administer  and  enforce  this
21    Section  as  of the first day of September next following the
22    adoption and filing. Beginning January 1, 1992, an  ordinance
23    or  resolution imposing or discontinuing the tax hereunder or
24    effecting a change in the rate thereof shall be adopted and a
25    certified copy thereof filed with the Department on or before
26    the first day of July, whereupon the Department shall proceed
27    to administer and enforce this Section as of the first day of
28    October next following such adoption  and  filing.  Beginning
29    January  1,  1993,  an  ordinance  or  resolution imposing or
30    discontinuing the tax hereunder or effecting a change in  the
31    rate  thereof  shall  be adopted and a certified copy thereof
32    filed with the Department on  or  before  the  first  day  of
33    October, whereupon the Department shall proceed to administer
34    and  enforce this Section as of the first day of January next
 
                            -99-               LRB9110257SMdv
 1    following the adoption and filing.  However,  a  municipality
 2    located  in a county with a population in excess of 3,000,000
 3    that elected to become  a  home  rule  unit  at  the  general
 4    primary election in 1994 may adopt an ordinance or resolution
 5    imposing the tax under this Section and file a certified copy
 6    of  the  ordinance  or  resolution  with the Department on or
 7    before July 1, 1994. The Department  shall  then  proceed  to
 8    administer  and  enforce  this Section as of October 1, 1994.
 9    Beginning April 1, 1998, an ordinance or resolution  imposing
10    or  discontinuing  the tax hereunder or effecting a change in
11    the rate thereof shall either (i) be adopted and a  certified
12    copy thereof filed with the Department on or before the first
13    day  of  April,  whereupon  the  Department  shall proceed to
14    administer and enforce this Section as of the  first  day  of
15    July  next  following  the  adoption  and  filing; or (ii) be
16    adopted  and  a  certified  copy  thereof  filed   with   the
17    Department  on  or before the first day of October, whereupon
18    the Department shall proceed to administer and  enforce  this
19    Section  as  of  the  first day of January next following the
20    adoption and filing.
21        When certifying the amount of a monthly disbursement to a
22    municipality  under  this  Section,  the   Department   shall
23    increase  or  decrease  the  amount by an amount necessary to
24    offset  any  misallocation  of  previous  disbursements.  The
25    offset amount  shall  be  the  amount  erroneously  disbursed
26    within the previous 6 months from the time a misallocation is
27    discovered.
28        Any   unobligated  balance  remaining  in  the  Municipal
29    Retailers' Occupation Tax Fund on December  31,  1989,  which
30    fund was abolished by Public Act 85-1135, and all receipts of
31    municipal  tax  as  a  result  of audits of liability periods
32    prior to January 1,  1990,  shall  be  paid  into  the  Local
33    Government  Tax  Fund  for  distribution  as provided by this
34    Section prior to the enactment of  Public  Act  85-1135.  All
 
                            -100-              LRB9110257SMdv
 1    receipts  of  municipal  tax as a result of an assessment not
 2    arising from an audit, for liability periods prior to January
 3    1, 1990, shall be paid into the Local Government Tax Fund for
 4    distribution before July 1, 1990, as provided by this Section
 5    prior to the enactment of Public  Act  85-1135;  and  on  and
 6    after July 1, 1990, all such receipts shall be distributed as
 7    provided in Section 6z-18 of the State Finance Act.
 8        As  used  in this Section, "municipal" and "municipality"
 9    means a city, village  or  incorporated  town,  including  an
10    incorporated town that has superseded a civil township.
11        This  Section shall be known and may be cited as the Home
12    Rule Municipal Retailers' Occupation Tax Act.
13    (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)

14        (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
15        Sec.  8-11-1.1.  Non-home  rule  municipality   use   and
16    occupation taxes.
17        (a)  The   corporate   authorities  of  a  non-home  rule
18    municipality with a population greater than 130,000 but  less
19    than  2,000,000  may,  upon  approval  of the electors of the
20    municipality pursuant to  subsection  (b)  of  this  Section,
21    impose   by  ordinance  or  resolution  the  1/2  of  1%  tax
22    authorized in Sections 8-11-1.3,  8-11-1.4  and  8-11-1.5  of
23    this Act.
24        A  municipality  that has not imposed a tax on motor fuel
25    or gasohol authorized in  Sections  8-11-1.3,  8-11-1.4,  and
26    8-11-1.5  before the effective date of this amendatory Act of
27    the 91st General Assembly shall not impose such a tax  on  or
28    after  that  date.  A  municipality that has imposed a tax on
29    motor  fuel  or  gasohol  authorized  in  Sections  8-11-1.3,
30    8-11-1.4, and 8-11-1.5 before  the  effective  date  of  this
31    amendatory  Act  of  the  91st  General  Assembly  shall  not
32    increase the rate of the tax on or after that date.
33        (b)  The corporate authorities of the municipality may by
 
                            -101-              LRB9110257SMdv
 1    ordinance  or  resolution  call  for  the  submission  to the
 2    electors of the municipality  the  question  of  whether  the
 3    municipality  shall  impose such tax.  Such question shall be
 4    certified by the municipal clerk to the election authority in
 5    accordance with Section 28-5 of the Election Code  and  shall
 6    be  in a form in accordance with Section 16-7 of the Election
 7    Code.
 8        If a majority of the electors in the municipality  voting
 9    upon  the question vote in the affirmative, such tax shall be
10    imposed.
11        An ordinance or resolution imposing the  1/2  of  1%  tax
12    hereunder  or  discontinuing  the same shall be adopted and a
13    certified copy thereof, together with  a  certification  that
14    the  ordinance  or resolution received referendum approval in
15    the case of the  imposition  of  such  tax,  filed  with  the
16    Department  of  Revenue,  on or before the first day of June,
17    whereupon the Department  shall  proceed  to  administer  and
18    enforce  the additional tax or to discontinue the tax, as the
19    case may be, as of the first day of September next  following
20    such  adoption  and  filing.  Beginning  January  1, 1992, an
21    ordinance or resolution imposing  or  discontinuing  the  tax
22    hereunder shall be adopted and a certified copy thereof filed
23    with  the  Department  on  or  before  the first day of July,
24    whereupon the Department  shall  proceed  to  administer  and
25    enforce  this  Section  as  of  the first day of October next
26    following such adoption  and  filing.  Beginning  January  1,
27    1993,  an  ordinance  or resolution imposing or discontinuing
28    the tax hereunder shall  be  adopted  and  a  certified  copy
29    thereof  filed with the Department on or before the first day
30    of  October,  whereupon  the  Department  shall  proceed   to
31    administer  and  enforce  this Section as of the first day of
32    January next following such adoption and filing.
33    (Source: P.A. 91-51, eff. 6-30-99.)
 
                            -102-              LRB9110257SMdv
 1        (65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
 2        Sec. 8-11-5.  Home Rule Municipal Service Occupation  Tax
 3    Act.   The  corporate authorities of a home rule municipality
 4    may  impose  a  tax  upon  all  persons  engaged,   in   such
 5    municipality,  in  the business of making sales of service at
 6    the same rate of tax imposed pursuant to Section  8-11-1,  of
 7    the   selling   price   of  all  tangible  personal  property
 8    transferred by such servicemen either in the form of tangible
 9    personal property or  in  the  form  of  real  estate  as  an
10    incident  to  a  sale of service.  If imposed, such tax shall
11    only be imposed in 1/4% increments. On and after September 1,
12    1991, this additional tax may not be imposed on the sales  of
13    food  for  human  consumption which is to be consumed off the
14    premises where it is sold (other  than  alcoholic  beverages,
15    soft  drinks  and  food which has been prepared for immediate
16    consumption) and prescription and nonprescription  medicines,
17    drugs,   medical   appliances   and  insulin,  urine  testing
18    materials, syringes and needles used by  diabetics.  The  tax
19    imposed  by a home rule municipality pursuant to this Section
20    and all civil penalties that may be assessed as  an  incident
21    thereof   shall  be  collected  and  enforced  by  the  State
22    Department of Revenue. The certificate of registration  which
23    is   issued  by  the  Department  to  a  retailer  under  the
24    Retailers' Occupation Tax Act or under the Service Occupation
25    Tax Act shall permit such registrant to engage in a  business
26    which  is  taxable  under any ordinance or resolution enacted
27    pursuant to this Section without registering separately  with
28    the  Department  under  such ordinance or resolution or under
29    this Section.   The  Department  shall  have  full  power  to
30    administer and enforce this Section; to collect all taxes and
31    penalties due hereunder; to dispose of taxes and penalties so
32    collected   in   the  manner  hereinafter  provided,  and  to
33    determine all rights to credit memoranda arising  on  account
34    of  the erroneous payment of tax or penalty hereunder. In the
 
                            -103-              LRB9110257SMdv
 1    administration of, and  compliance  with,  this  Section  the
 2    Department  and persons who are subject to this Section shall
 3    have  the  same  rights,  remedies,  privileges,  immunities,
 4    powers and duties, and be subject  to  the  same  conditions,
 5    restrictions,   limitations,  penalties  and  definitions  of
 6    terms, and  employ  the  same  modes  of  procedure,  as  are
 7    prescribed  in  Sections  1a-1,  2,  2a,  3  through 3-50 (in
 8    respect to all provisions therein other than the  State  rate
 9    of  tax),  4 (except that the reference to the State shall be
10    to the  taxing  municipality),  5,  7,  8  (except  that  the
11    jurisdiction  to  which the tax shall be a debt to the extent
12    indicated  in  that   Section   8   shall   be   the   taxing
13    municipality),  9  (except as to the disposition of taxes and
14    penalties collected, and except that the returned merchandise
15    credit for this municipal tax may not be  taken  against  any
16    State  tax),  10,  11,  12  (except  the reference therein to
17    Section 2b of the Retailers' Occupation Tax Act), 13  (except
18    that  any  reference  to  the  State  shall  mean  the taxing
19    municipality), the first paragraph  of  Section  15,  16,  17
20    (except  that  credit  memoranda  issued hereunder may not be
21    used to discharge any State tax liability), 18, 19 and 20  of
22    the Service Occupation Tax Act and Section 3-7 of the Uniform
23    Penalty  and  Interest  Act,  as fully as if those provisions
24    were set forth herein.
25        No tax  may  be  imposed  by  a  home  rule  municipality
26    pursuant  to  this  Section  unless  such  municipality  also
27    imposes  a tax at the same rate pursuant to Section 8-11-1 of
28    this Act.
29        A home rule municipality that has not imposed a tax under
30    this Section on the selling price of motor  fuel  or  gasohol
31    before  the effective date of this amendatory Act of the 91st
32    General Assembly shall not impose such a tax on or after that
33    date. A home rule municipality that has imposed a  tax  under
34    this  Section  on  the selling price of motor fuel or gasohol
 
                            -104-              LRB9110257SMdv
 1    before the effective date of this amendatory Act of the  91st
 2    General Assembly shall not increase the rate of the tax on or
 3    after  that  date.  This  amendatory  Act of the 91st General
 4    Assembly is a denial and limitation of home  rule  powers  to
 5    tax  under  subsection (g) of Section 6 of Article VII of the
 6    Illinois Constitution.
 7        Persons subject  to  any  tax  imposed  pursuant  to  the
 8    authority  granted  in  this Section may reimburse themselves
 9    for their serviceman's tax liability hereunder by  separately
10    stating such tax as an additional charge, which charge may be
11    stated  in  combination,  in  a single amount, with State tax
12    which servicemen are authorized to collect under the  Service
13    Use  Tax  Act,  pursuant  to  such  bracket  schedules as the
14    Department may prescribe.
15        Whenever the Department determines that a  refund  should
16    be  made  under this Section to a claimant instead of issuing
17    credit memorandum, the  Department  shall  notify  the  State
18    Comptroller,  who  shall  cause the order to be drawn for the
19    amount  specified,  and  to  the  person   named,   in   such
20    notification  from the Department.  Such refund shall be paid
21    by the  State  Treasurer  out  of  the  home  rule  municipal
22    retailers' occupation tax fund.
23        The  Department  shall  forthwith  pay  over to the State
24    Treasurer, ex-officio, as trustee, all  taxes  and  penalties
25    collected  hereunder.  On  or  before  the  25th  day of each
26    calendar month, the Department shall prepare and  certify  to
27    the  Comptroller  the disbursement of stated sums of money to
28    named municipalities, the municipalities  to  be  those  from
29    which  suppliers  and servicemen have paid taxes or penalties
30    hereunder to  the  Department  during  the  second  preceding
31    calendar  month.  The  amount to be paid to each municipality
32    shall  be  the  amount  (not  including   credit   memoranda)
33    collected  hereunder  during  the  second  preceding calendar
34    month by the Department, and not including an amount equal to
 
                            -105-              LRB9110257SMdv
 1    the amount  of  refunds  made  during  the  second  preceding
 2    calendar   month   by   the  Department  on  behalf  of  such
 3    municipality.  Within  10  days   after   receipt,   by   the
 4    Comptroller,   of   the  disbursement  certification  to  the
 5    municipalities, provided for in this Section to be  given  to
 6    the  Comptroller  by  the  Department,  the Comptroller shall
 7    cause the orders to be drawn for the  respective  amounts  in
 8    accordance    with   the   directions   contained   in   such
 9    certification.
10        In addition to the disbursement required by the preceding
11    paragraph  and  in  order  to  mitigate  delays   caused   by
12    distribution  procedures,  an allocation shall, if requested,
13    be made within  10  days  after  January  14,  1991,  and  in
14    November   of   1991   and  each  year  thereafter,  to  each
15    municipality that received  more  than  $500,000  during  the
16    preceding  fiscal  year,  (July  1  through  June 30) whether
17    collected by the municipality or disbursed by the  Department
18    as required by this Section. Within 10 days after January 14,
19    1991,   participating   municipalities   shall   notify   the
20    Department  in  writing  of  their intent to participate.  In
21    addition,  for  the   initial   distribution,   participating
22    municipalities  shall  certify  to the Department the amounts
23    collected by the municipality for each month under  its  home
24    rule  occupation and service occupation tax during the period
25    July 1, 1989 through June 30, 1990.  The allocation within 10
26    days after January 14, 1991, shall be in an amount  equal  to
27    the  monthly average of these amounts, excluding the 2 months
28    of highest receipts.  Monthly average for the period of  July
29    1,  1990 through June 30, 1991 will be determined as follows:
30    the amounts collected by the municipality under its home rule
31    occupation and service occupation tax during  the  period  of
32    July  1,  1990  through  September  30,  1990,  plus  amounts
33    collected  by  the  Department  and paid to such municipality
34    through June 30, 1991, excluding  the  2  months  of  highest
 
                            -106-              LRB9110257SMdv
 1    receipts.   The monthly average for each subsequent period of
 2    July 1 through June 30  shall  be  an  amount  equal  to  the
 3    monthly distribution made to each such municipality under the
 4    preceding  paragraph  during  this  period,  excluding  the 2
 5    months  of  highest  receipts.   The  distribution  made   in
 6    November  1991  and each year thereafter under this paragraph
 7    and the preceding paragraph shall be reduced  by  the  amount
 8    allocated and disbursed under this paragraph in the preceding
 9    period  of  July  1  through  June  30.  The Department shall
10    prepare and certify to the Comptroller for  disbursement  the
11    allocations made in accordance with this paragraph.
12        Nothing in this Section shall be construed to authorize a
13    municipality  to  impose a tax upon the privilege of engaging
14    in any business which under the constitution  of  the  United
15    States may not be made the subject of taxation by this State.
16        An  ordinance  or  resolution imposing or discontinuing a
17    tax hereunder or effecting a change in the rate thereof shall
18    be adopted and  a  certified  copy  thereof  filed  with  the
19    Department  on or before the first day of June, whereupon the
20    Department shall  proceed  to  administer  and  enforce  this
21    Section  as of the first day of September next following such
22    adoption and filing.  Beginning January 1, 1992, an ordinance
23    or resolution imposing or discontinuing the tax hereunder  or
24    effecting a change in the rate thereof shall be adopted and a
25    certified copy thereof filed with the Department on or before
26    the first day of July, whereupon the Department shall proceed
27    to administer and enforce this Section as of the first day of
28    October  next  following  such adoption and filing. Beginning
29    January 1, 1993,  an  ordinance  or  resolution  imposing  or
30    discontinuing  the tax hereunder or effecting a change in the
31    rate thereof shall be adopted and a  certified  copy  thereof
32    filed  with  the  Department  on  or  before the first day of
33    October, whereupon the Department shall proceed to administer
34    and enforce this Section as of the first day of January  next
 
                            -107-              LRB9110257SMdv
 1    following  such  adoption and filing. However, a municipality
 2    located in a county with a population in excess of  3,000,000
 3    that  elected  to  become  a  home  rule  unit at the general
 4    primary election in 1994 may adopt an ordinance or resolution
 5    imposing the tax under this Section and file a certified copy
 6    of the ordinance or resolution  with  the  Department  on  or
 7    before  July  1,  1994.  The Department shall then proceed to
 8    administer and enforce this Section as of  October  1,  1994.
 9    Beginning  April 1, 1998, an ordinance or resolution imposing
10    or discontinuing the tax hereunder or effecting a  change  in
11    the  rate thereof shall either (i) be adopted and a certified
12    copy thereof filed with the Department on or before the first
13    day of April,  whereupon  the  Department  shall  proceed  to
14    administer  and  enforce  this Section as of the first day of
15    July next following the  adoption  and  filing;  or  (ii)  be
16    adopted   and   a  certified  copy  thereof  filed  with  the
17    Department on or before the first day of  October,  whereupon
18    the  Department  shall proceed to administer and enforce this
19    Section as of the first day of  January  next  following  the
20    adoption and filing.
21        Any   unobligated  balance  remaining  in  the  Municipal
22    Retailers' Occupation Tax Fund on December  31,  1989,  which
23    fund was abolished by Public Act 85-1135, and all receipts of
24    municipal  tax  as  a  result  of audits of liability periods
25    prior to January 1,  1990,  shall  be  paid  into  the  Local
26    Government  Tax  Fund,  for  distribution as provided by this
27    Section prior to the enactment of  Public  Act  85-1135.  All
28    receipts  of  municipal  tax as a result of an assessment not
29    arising from an audit, for liability periods prior to January
30    1, 1990, shall be paid into the Local Government Tax Fund for
31    distribution before July 1, 1990, as provided by this Section
32    prior to the enactment of Public  Act  85-1135,  and  on  and
33    after July 1, 1990, all such receipts shall be distributed as
34    provided in Section 6z-18 of the State Finance Act.
 
                            -108-              LRB9110257SMdv
 1        As  used  in this Section, "municipal" and "municipality"
 2    means a city, village  or  incorporated  town,  including  an
 3    incorporated town which has superseded a civil township.
 4        This  Section shall be known and may be cited as the Home
 5    Rule Municipal Service Occupation Tax Act.
 6    (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)

 7        (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
 8        Sec. 8-11-6.  Home Rule Municipal Use Tax Act.
 9        (a)  The   corporate   authorities   of   a   home   rule
10    municipality may impose a tax upon the privilege of using, in
11    such municipality, any item  of  tangible  personal  property
12    which  is  purchased  at retail from a retailer, and which is
13    titled or registered  at  a  location  within  the  corporate
14    limits  of such home rule municipality with an agency of this
15    State's government, at a rate which is an increment  of  1/4%
16    and  based  on  the  selling  price of such tangible personal
17    property, as "selling price" is defined in the Use  Tax  Act.
18    In   home   rule  municipalities  with  less  than  2,000,000
19    inhabitants, the tax shall be collected by  the  municipality
20    imposing  the  tax  from  persons  whose Illinois address for
21    titling or registration purposes is given as  being  in  such
22    municipality.
23        (b)  In  home  rule municipalities with 2,000,000 or more
24    inhabitants, the corporate authorities  of  the  municipality
25    may additionally impose a tax beginning July 1, 1991 upon the
26    privilege  of using in the municipality, any item of tangible
27    personal property,  other  than  tangible  personal  property
28    titled   or   registered   with  an  agency  of  the  State's
29    government, that is  purchased  at  retail  from  a  retailer
30    located  outside the corporate limits of the municipality, at
31    a rate that is an increment of 1/4%  not  to  exceed  1%  and
32    based on the selling price of the tangible personal property,
33    as  "selling  price" is defined in the Use Tax Act.  Such tax
 
                            -109-              LRB9110257SMdv
 1    shall be collected from the  purchaser  by  the  municipality
 2    imposing such tax.
 3        To prevent multiple home rule taxation, the use in a home
 4    rule  municipality  of  tangible  personal  property  that is
 5    acquired outside the municipality and caused  to  be  brought
 6    into the municipality by a person who has already paid a home
 7    rule  municipal tax in another municipality in respect to the
 8    sale, purchase, or use of that property, shall be  exempt  to
 9    the  extent of the amount of the tax properly due and paid in
10    the other home rule municipality.
11        (b-5)  A home rule municipality that has  not  imposed  a
12    tax  under  this  Section on the use of motor fuel or gasohol
13    before the effective date of this amendatory Act of the  91st
14    General Assembly shall not impose such a tax on or after that
15    date.  A  home rule municipality that has imposed a tax under
16    this Section on the use of motor fuel or gasohol  before  the
17    effective  date  of  this  amendatory Act of the 91st General
18    Assembly shall not increase the rate of the tax on  or  after
19    that  date.  This amendatory Act of the 91st General Assembly
20    is a denial and limitation of home rule powers to  tax  under
21    subsection  (g)  of  Section 6 of Article VII of the Illinois
22    Constitution.
23        (c)  If  a  municipality   having   2,000,000   or   more
24    inhabitants  imposes  the  tax  authorized by subsection (a),
25    then the tax shall be collected by the Illinois Department of
26    Revenue when the property  is  purchased  at  retail  from  a
27    retailer  in  the  county in which the home rule municipality
28    imposing the tax is located, and in all contiguous  counties.
29    The  tax  shall  be  remitted  to  the State, or an exemption
30    determination must be obtained from the Department before the
31    title or certificate of registration for the property may  be
32    issued.   The tax or proof of exemption may be transmitted to
33    the Department by way of the  State  agency  with  which,  or
34    State  officer with whom, the tangible personal property must
 
                            -110-              LRB9110257SMdv
 1    be titled or registered if the Department and that agency  or
 2    State officer determine that this procedure will expedite the
 3    processing of applications for title or registration.
 4        The  Department  shall  have full power to administer and
 5    enforce this Section to  collect  all  taxes,  penalties  and
 6    interest  due  hereunder,  to dispose of taxes, penalties and
 7    interest so collected in the manner hereinafter provided, and
 8    determine all rights to credit memoranda or  refunds  arising
 9    on  account  of  the  erroneous  payment  of  tax, penalty or
10    interest hereunder.  In the administration of and  compliance
11    with  this Section the Department and persons who are subject
12    to  this  Section  shall  have  the  same  rights,  remedies,
13    privileges, immunities, powers and duties, and be subject  to
14    the same conditions, restrictions, limitations, penalties and
15    definitions  of terms, and employ the same modes of procedure
16    as are prescribed in Sections 2  (except  the  definition  of
17    "retailer  maintaining a place of business in this State"), 3
18    (except provisions pertaining to the State rate of  tax,  and
19    except  provisions  concerning collection or refunding of the
20    tax by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and  22
21    of  the  Use  Tax  Act,  which are not inconsistent with this
22    Section,  as  fully  as  if  provisions  contained  in  those
23    Sections of the Use Tax Act were set forth herein.
24        Whenever the Department determines that a refund shall be
25    made under this Section to a claimant instead  of  issuing  a
26    credit  memorandum,  the  Department  shall  notify the State
27    Comptroller, who shall cause the order to be  drawn  for  the
28    amount   specified,   and   to  the  person  named,  in  such
29    notification from the Department.  Such refund shall be  paid
30    by  the  State  Treasurer  out  of  the  home  rule municipal
31    retailers' occupation tax fund.
32        The Department shall forthwith  pay  over  to  the  State
33    Treasurer,  ex  officio, as trustee, all taxes, penalties and
34    interest collected hereunder.  On or before the 25th  day  of
 
                            -111-              LRB9110257SMdv
 1    each calendar month, the Department shall prepare and certify
 2    to  the  State Comptroller the disbursement of stated sums of
 3    money to  named  municipalities,  the  municipality  in  each
 4    instance  to  be  that municipality from which the Department
 5    during  the  second  preceding  calendar   month,   collected
 6    municipal  use tax from any person whose Illinois address for
 7    titling or registration purposes is given as  being  in  such
 8    municipality.   The  amount  to  be paid to each municipality
 9    shall  be  the  amount  (not  including   credit   memoranda)
10    collected  hereunder  during  the  second  preceding calendar
11    month by the Department, and not including an amount equal to
12    the amount  of  refunds  made  during  the  second  preceding
13    calendar   month   by   the  Department  on  behalf  of  such
14    municipality, less the  amount  expended  during  the  second
15    preceding  month  by  the  Department  to  be  paid  from the
16    appropriation to the Department from the Home Rule  Municipal
17    Retailers'  Occupation  Tax Trust Fund.  The appropriation to
18    cover the costs incurred by the Department  in  administering
19    and  enforcing this Section shall not exceed 2% of the amount
20    estimated to  be  deposited  into  the  Home  Rule  Municipal
21    Retailers'  Occupation  Tax Trust Fund during the fiscal year
22    for which the appropriation is made.  Within  10  days  after
23    receipt   by   the  State  Comptroller  of  the  disbursement
24    certification to the  municipalities  provided  for  in  this
25    Section   to  be  given  to  the  State  Comptroller  by  the
26    Department, the State Comptroller shall cause the  orders  to
27    be  drawn  for  the respective amounts in accordance with the
28    directions contained in that certification.
29        Any ordinance imposing or discontinuing  any  tax  to  be
30    collected  and  enforced by the Department under this Section
31    shall be adopted and a certified copy thereof filed with  the
32    Department  on  or before October 1, whereupon the Department
33    of Revenue shall  proceed  to  administer  and  enforce  this
34    Section  on behalf of the municipalities as of January 1 next
 
                            -112-              LRB9110257SMdv
 1    following such adoption and filing.  Beginning April 1, 1998,
 2    any  ordinance  imposing  or  discontinuing  any  tax  to  be
 3    collected and enforced by the Department under  this  Section
 4    shall  either  (i)  be  adopted  and a certified copy thereof
 5    filed with the Department on or before April 1, whereupon the
 6    Department of Revenue shall proceed to administer and enforce
 7    this Section on behalf of the municipalities  as  of  July  1
 8    next  following  the  adoption and filing; or (ii) be adopted
 9    and a certified copy thereof filed with the Department on  or
10    before  October  1, whereupon the Department of Revenue shall
11    proceed to administer and enforce this Section on  behalf  of
12    the  municipalities  as  of  January  1  next  following  the
13    adoption and filing.
14        Nothing  in this subsection (c) shall prevent a home rule
15    municipality from collecting the tax pursuant  to  subsection
16    (a)  in  any situation where such tax is not collected by the
17    Department of Revenue under this subsection (c).
18        (d)  Any unobligated balance remaining in  the  Municipal
19    Retailers'  Occupation  Tax  Fund on December 31, 1989, which
20    fund was abolished by Public Act 85-1135, and all receipts of
21    municipal tax as a result  of  audits  of  liability  periods
22    prior  to  January  1,  1990,  shall  be  paid into the Local
23    Government Tax Fund, for distribution  as  provided  by  this
24    Section  prior  to  the  enactment of Public Act 85-1135. All
25    receipts of municipal tax as a result of  an  assessment  not
26    arising from an audit, for liability periods prior to January
27    1, 1990, shall be paid into the Local Government Tax Fund for
28    distribution before July 1, 1990, as provided by this Section
29    prior  to  the  enactment  of  Public Act 85-1135, and on and
30    after July 1, 1990, all such receipts shall be distributed as
31    provided in Section 6z-18 of the State Finance Act.
32        (e)  As   used   in   this   Section,   "Municipal"   and
33    "Municipality" means a city, village  or  incorporated  town,
34    including  an  incorporated town which has superseded a civil
 
                            -113-              LRB9110257SMdv
 1    township.
 2        (f)  This Section shall be known and may be cited as  the
 3    Home Rule Municipal Use Tax Act.
 4    (Source:  P.A.  90-562,  eff. 12-16-97; 90-689, eff. 7-31-98;
 5    91-51, eff. 6-30-99.)

 6        (65 ILCS 5/8-11-15) (from Ch. 24, par. 8-11-15)
 7        Sec. 8-11-15.  Municipal motor fuel.
 8        (a)  The corporate authorities of a municipality of  over
 9    100,000 inhabitants may, upon approval of the electors of the
10    municipality  pursuant to subsection (b), impose a tax of one
11    cent per gallon on motor fuel  sold  at  retail  within  such
12    municipality. A tax imposed pursuant to this Section shall be
13    paid in addition to any other taxes on such motor fuel.
14        A  municipality  that  has  not  imposed a tax under this
15    Section before the effective date of this amendatory  Act  of
16    the  91st  General Assembly shall not impose such a tax on or
17    after that date. A municipality that has imposed a tax  under
18    this Section before the effective date of this amendatory Act
19    of  the  91st General Assembly shall not increase the rate of
20    the tax on or after that date.  This amendatory  Act  of  the
21    91st General Assembly is a denial and limitation of home rule
22    powers  to  tax  under subsection (g) of Section 6 of Article
23    VII of the Illinois Constitution.
24        (b)  The corporate authorities of the municipality may by
25    resolution call for the submission to  the  electors  of  the
26    municipality  of  the  question  of  whether the municipality
27    shall impose such tax.  Such question shall be  certified  by
28    the  municipal  clerk to the election authority in accordance
29    with Section 28-5 of The Election Code. The question shall be
30    in substantially the following form:
31    -------------------------------------------------------------
32        Shall the city (village or
33     incorporated town) of .......     YES
 
                            -114-              LRB9110257SMdv
 1     impose a tax of one cent per   -----------------------------
 2     gallon on motor fuel sold at       NO
 3     retail within its boundaries?
 4    -------------------------------------------------------------
 5        If a majority of the electors in the municipality  voting
 6    upon  the question vote in the affirmative, such tax shall be
 7    imposed.
 8        (c)  The purchaser of the motor fuel shall be liable  for
 9    payment  of  a  tax  imposed  pursuant  to this Section. This
10    Section shall not  be  construed  to  impose  a  tax  on  the
11    occupation of persons engaged in the sale of motor fuel.
12        If a municipality imposes a tax on motor fuel pursuant to
13    this  Section,  it shall be the duty of any person engaged in
14    the retail sale of motor fuel  within  such  municipality  to
15    collect  such  tax  from  the  purchaser  at the same time he
16    collects the purchase price of the motor fuel and to pay over
17    such tax to the municipality as prescribed by  the  ordinance
18    of the municipality imposing such tax.
19        (d)  For  purposes  of  this  Section, "motor fuel" shall
20    have the same meaning as provided  in  the  "Motor  Fuel  Tax
21    Law".
22    (Source: P.A. 84-1099.)

23        Section 35.  The Civic Center Code is amended by changing
24    Section 245-12 as follows:

25        (70 ILCS 200/245-12)
26        Sec. 245-12. Use and occupation taxes.
27        (a)  The Authority may adopt a resolution that authorizes
28    a  referendum  on the question of whether the Authority shall
29    be authorized  to  impose  a  retailers'  occupation  tax,  a
30    service  occupation tax, and a use tax in one-quarter percent
31    increments at a rate not to exceed 1%.  The  Authority  shall
32    certify  the  question to the proper election authorities who
 
                            -115-              LRB9110257SMdv
 1    shall submit the question to the voters of  the  metropolitan
 2    area  at  the next regularly scheduled election in accordance
 3    with the general election  law.  The  question  shall  be  in
 4    substantially the following form:
 5        "Shall  the Salem Civic Center Authority be authorized to
 6        impose a retailers' occupation tax, a service  occupation
 7        tax,  and  a  use  tax at the rate of (rate) for the sole
 8        purpose of obtaining funds for the support, construction,
 9        maintenance,  or  financing  of   a   facility   of   the
10        Authority?"
11        Votes  shall  be recorded as "yes" or "no". If a majority
12    of all votes cast on the proposition  are  in  favor  of  the
13    proposition, the Authority is authorized to impose the tax.
14        (b)  The Authority shall impose the retailers' occupation
15    tax  upon  all  persons  engaged  in  the business of selling
16    tangible personal property  at  retail  in  the  metropolitan
17    area,  at  the  rate  approved  by  referendum,  on the gross
18    receipts from the sales made in the course of  such  business
19    within  the  metropolitan  area.   The tax imposed under this
20    Section and all civil penalties that may be  assessed  as  an
21    incident  thereof  shall  be  collected  and  enforced by the
22    Department of Revenue.  The  Department  has  full  power  to
23    administer and enforce this Section; to collect all taxes and
24    penalties  so  collected  in  the  manner  provided  in  this
25    Section;  and  to  determine  all  rights to credit memoranda
26    arising on account of the erroneous payment of tax or penalty
27    hereunder.  In the administration of,  and  compliance  with,
28    this  Section,  the Department and persons who are subject to
29    this Section  shall  (i)  have  the  same  rights,  remedies,
30    privileges, immunities, powers and duties, (ii) be subject to
31    the  same  conditions,  restrictions, limitations, penalties,
32    exclusions, exemptions, and definitions of terms,  and  (iii)
33    employ  the  same  modes  of  procedure  as are prescribed in
34    Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n,  2,
 
                            -116-              LRB9110257SMdv
 1    2-5,  2-5.5, 2-10 (in respect to all provisions therein other
 2    than the State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3
 3    (except  as  to  the  disposition  of  taxes  and   penalties
 4    collected   and   provisions   related   to  quarter  monthly
 5    payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k,  5l,
 6    6,  6a,  6b,  6c,  7,  8,  9,  10, 11, 11a, 12, and 13 of the
 7    Retailers' Occupation Tax Act and Section 3-7 of the  Uniform
 8    Penalty  and  Interest  Act,  as fully as if those provisions
 9    were set forth in this subsection.
10        If the  Authority  has  not  imposed  a  tax  under  this
11    subsection  on  the  sale of motor fuel or gasohol before the
12    effective date of this amendatory Act  of  the  91st  General
13    Assembly,  then  the Authority shall not impose such a tax on
14    or after that date.  If the Authority has imposed a tax under
15    this subsection on the sale of motor fuel or  gasohol  before
16    the effective date of this amendatory Act of the 91st General
17    Assembly,  then  the Authority shall not increase the rate of
18    the tax on or after that date.
19        Persons subject to any tax imposed under this  subsection
20    may  reimburse themselves for their seller's tax liability by
21    separately stating the tax as  an  additional  charge,  which
22    charge may be stated in combination, in a single amount, with
23    State   taxes  that  sellers  are  required  to  collect,  in
24    accordance with such bracket schedules as the Department  may
25    prescribe.
26        Whenever  the  Department determines that a refund should
27    be made under  this  subsection  to  a  claimant  instead  of
28    issuing  a credit memorandum, the Department shall notify the
29    State Comptroller, who shall cause the warrant  to  be  drawn
30    for  the  amount  specified,  and to the person named, in the
31    notification from the Department.  The refund shall  be  paid
32    by  the  State Treasurer out of the tax fund referenced under
33    paragraph (g) of this Section.
34        If a tax is imposed under  this  subsection  (b),  a  tax
 
                            -117-              LRB9110257SMdv
 1    shall  also be imposed at the same rate under subsections (c)
 2    and (d) of this Section.
 3        For the purpose of determining whether a  tax  authorized
 4    under  this  Section  is  applicable,  a  retail  sale,  by a
 5    producer of coal or other mineral mined  in  Illinois,  is  a
 6    sale  at  retail at the place where the coal or other mineral
 7    mined  in  Illinois  is  extracted  from  the  earth.    This
 8    paragraph  does not apply to coal or other mineral when it is
 9    delivered or shipped by the seller  to  the  purchaser  at  a
10    point  outside  Illinois so that the sale is exempt under the
11    Federal Constitution as  a  sale  in  interstate  or  foreign
12    commerce.
13        Nothing  in  this Section shall be construed to authorize
14    the Authority to impose a tax upon the privilege of  engaging
15    in  any  business  which under the Constitution of the United
16    States may not be made the subject of taxation by this State.
17        (c)  If a tax has been imposed under  subsection  (b),  a
18    service occupation tax shall also be imposed at the same rate
19    upon  all  persons  engaged, in the metropolitan area, in the
20    business of making sales of service, who, as an  incident  to
21    making  those  sales  of  service, transfer tangible personal
22    property within the metropolitan area as  an  incident  to  a
23    sale  of  service.  The tax imposed under this subsection and
24    all civil penalties that  may  be  assessed  as  an  incident
25    thereof  shall be collected and enforced by the Department of
26    Revenue. The Department has  full  power  to  administer  and
27    enforce  this  paragraph;  to collect all taxes and penalties
28    due hereunder; to dispose of taxes and penalties so collected
29    in the manner hereinafter  provided;  and  to  determine  all
30    rights   to  credit  memoranda  arising  on  account  of  the
31    erroneous payment of  tax  or  penalty  hereunder.    In  the
32    administration  of,  and  compliance with this paragraph, the
33    Department and persons who  are  subject  to  this  paragraph
34    shall   (i)  have  the  same  rights,  remedies,  privileges,
 
                            -118-              LRB9110257SMdv
 1    immunities, powers, and duties, (ii) be subject to  the  same
 2    conditions, restrictions, limitations, penalties, exclusions,
 3    exemptions,  and  definitions  of terms, and (iii) employ the
 4    same modes of procedure  as  are  prescribed  in  Sections  2
 5    (except  that  the  reference  to  State in the definition of
 6    supplier maintaining a place of business in this State  shall
 7    mean  the  metropolitan  area),  2a,  2b,  3 through 3-55 (in
 8    respect to all provisions therein other than the  State  rate
 9    of  tax),  4 (except that the reference to the State shall be
10    to the Authority), 5, 7, 8 (except that the  jurisdiction  to
11    which the tax shall be a debt to the extent indicated in that
12    Section  8  shall  be  the  Authority),  9  (except as to the
13    disposition of taxes and penalties collected, and except that
14    the returned merchandise credit for this tax may not be taken
15    against any State tax), 11, 12 (except the reference  therein
16    to  Section  2b  of  the  Retailers'  Occupation Tax Act), 13
17    (except that any  reference  to  the  State  shall  mean  the
18    Authority),  15,  16,  17,  18,  19  and  20  of  the Service
19    Occupation Tax Act and Section 3-7 of the Uniform Penalty and
20    Interest Act, as fully as if those provisions were set  forth
21    herein.
22        If  the  Authority  has  not  imposed  a  tax  under this
23    subsection on the selling price  of  motor  fuel  or  gasohol
24    before  the effective date of this amendatory Act of the 91st
25    General Assembly, then the Authority shall not impose such  a
26    tax  on  or  after that date.  If the Authority has imposed a
27    tax under this subsection on the selling price of motor  fuel
28    or  gasohol  before the effective date of this amendatory Act
29    of the 91st General Assembly, then the  Authority  shall  not
30    increase the rate of the tax on or after that date.
31        Persons  subject  to  any tax imposed under the authority
32    granted in this subsection may reimburse themselves for their
33    serviceman's tax liability by separately stating the  tax  as
34    an   additional   charge,  which  charge  may  be  stated  in
 
                            -119-              LRB9110257SMdv
 1    combination,  in  a  single  amount,  with  State  tax   that
 2    servicemen  are  authorized  to collect under the Service Use
 3    Tax Act, in accordance with such  bracket  schedules  as  the
 4    Department may prescribe.
 5        Whenever  the  Department determines that a refund should
 6    be made under  this  subsection  to  a  claimant  instead  of
 7    issuing  a credit memorandum, the Department shall notify the
 8    State Comptroller, who shall cause the warrant  to  be  drawn
 9    for  the  amount  specified,  and to the person named, in the
10    notification from the Department.  The refund shall  be  paid
11    by  the  State Treasurer out of the tax fund referenced under
12    paragraph (g) of this Section.
13        Nothing in this paragraph shall be construed to authorize
14    the Authority to impose a tax upon the privilege of  engaging
15    in  any  business  which under the Constitution of the United
16    States may not be made the subject of taxation by the State.
17        (d)  If a tax has been imposed under  subsection  (b),  a
18    use  tax  shall  also  be  imposed  at the same rate upon the
19    privilege of using, in the metropolitan  area,  any  item  of
20    tangible  personal  property  that  is  purchased outside the
21    metropolitan area at retail from  a  retailer,  and  that  is
22    titled  or  registered  at a location within the metropolitan
23    area with an agency  of  this  State's  government.  "Selling
24    price"  is  defined  as in the Use Tax Act.  The tax shall be
25    collected from persons whose Illinois address for titling  or
26    registration  purposes  is given as being in the metropolitan
27    area.  The tax  shall  be  collected  by  the  Department  of
28    Revenue for the Authority. The tax must be paid to the State,
29    or  an  exemption  determination  must  be  obtained from the
30    Department of Revenue, before the  title  or  certificate  of
31    registration  for  the  property  may  be issued.  The tax or
32    proof of exemption may be transmitted to  the  Department  by
33    way of the State agency with which, or the State officer with
34    whom,  the  tangible  personal  property  must  be  titled or
 
                            -120-              LRB9110257SMdv
 1    registered if the Department and the State  agency  or  State
 2    officer  determine  that  this  procedure  will  expedite the
 3    processing of applications for title or registration.
 4        The Department has full power to administer  and  enforce
 5    this  paragraph; to collect all taxes, penalties and interest
 6    due hereunder; to dispose of taxes, penalties and interest so
 7    collected  in  the  manner  hereinafter  provided;   and   to
 8    determine  all  rights to credit memoranda or refunds arising
 9    on account of  the  erroneous  payment  of  tax,  penalty  or
10    interest  hereunder. In the administration of, and compliance
11    with, this subsection, the Department  and  persons  who  are
12    subject  to  this  paragraph  shall (i) have the same rights,
13    remedies, privileges, immunities, powers, and duties, (ii) be
14    subject to the same  conditions,  restrictions,  limitations,
15    penalties,  exclusions, exemptions, and definitions of terms,
16    and  (iii)  employ  the  same  modes  of  procedure  as   are
17    prescribed  in Sections 2 (except the definition of "retailer
18    maintaining a place of business  in  this  State"),  3,  3-5,
19    3-10,  3-45,  3-55,  3-65, 3-70, 3-85, 3a, 4, 6, 7, 8 (except
20    that the jurisdiction to which the tax shall be a debt to the
21    extent indicated in that Section 8 shall be the Authority), 9
22    (except provisions relating to quarter monthly payments), 10,
23    11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22 of  the  Use
24    Tax  Act  and Section 3-7 of the Uniform Penalty and Interest
25    Act, that are not inconsistent with this paragraph, as  fully
26    as if those provisions were set forth herein.
27        If  the  Authority  has  not  imposed  a  tax  under this
28    subsection on the use of motor fuel  or  gasohol  before  the
29    effective  date  of  this  amendatory Act of the 91st General
30    Assembly, then the Authority shall not impose such a  tax  on
31    or after that date.  If the Authority has imposed a tax under
32    this  subsection  on  the use of motor fuel or gasohol before
33    the effective date of this amendatory Act of the 91st General
34    Assembly, then the Authority shall not increase the  rate  of
 
                            -121-              LRB9110257SMdv
 1    the tax on or after that date.
 2        Whenever  the  Department determines that a refund should
 3    be made under  this  subsection  to  a  claimant  instead  of
 4    issuing  a credit memorandum, the Department shall notify the
 5    State Comptroller, who shall cause the order to be drawn  for
 6    the  amount  specified,  and  to  the  person  named,  in the
 7    notification from the Department. The refund shall be paid by
 8    the State Treasurer out of  the  tax  fund  referenced  under
 9    paragraph (g) of this Section.
10        (e)  A  certificate  of  registration issued by the State
11    Department of Revenue to  a  retailer  under  the  Retailers'
12    Occupation  Tax  Act  or under the Service Occupation Tax Act
13    shall permit the registrant to engage in a business  that  is
14    taxed under the tax imposed under paragraphs (b), (c), or (d)
15    of  this  Section  and  no  additional  registration shall be
16    required. A certificate issued under the Use Tax Act  or  the
17    Service  Use  Tax  Act shall be applicable with regard to any
18    tax imposed under paragraph (c) of this Section.
19        (f)  The  results   of   any   election   authorizing   a
20    proposition to impose a tax under this Section or effecting a
21    change  in  the  rate of tax shall be certified by the proper
22    election authorities and filed with the  Illinois  Department
23    on  or  before  the  first  day  of  April.   In addition, an
24    ordinance imposing, discontinuing, or effecting a  change  in
25    the  rate  of  tax  under this Section shall be adopted and a
26    certified copy thereof filed with the Department on or before
27    the first  day  of  April.   After  proper  receipt  of  such
28    certifications,  the  Department  shall proceed to administer
29    and enforce this Section as of the first  day  of  July  next
30    following such adoption and filing.
31        (g)  The Department of Revenue shall, upon collecting any
32    taxes  and  penalties  as  provided  in this Section, pay the
33    taxes and penalties over to the State  Treasurer  as  trustee
34    for the Authority. The taxes and penalties shall be held in a
 
                            -122-              LRB9110257SMdv
 1    trust  fund outside the State Treasury. On or before the 25th
 2    day of each calendar month, the Department of  Revenue  shall
 3    prepare  and  certify  to  the  Comptroller  of  the State of
 4    Illinois the amount to be paid to the Authority, which  shall
 5    be the balance in the fund, less any amount determined by the
 6    Department to be necessary for the payment of refunds. Within
 7    10 days after receipt by the Comptroller of the certification
 8    of  the  amount  to be paid to the Authority, the Comptroller
 9    shall cause an order to be drawn for payment for  the  amount
10    in   accordance   with   the   directions  contained  in  the
11    certification. Amounts received from the  tax  imposed  under
12    this   Section   shall   be   used   only  for  the  support,
13    construction, maintenance, or financing of a facility of  the
14    Authority.
15        (h)  When certifying the amount of a monthly disbursement
16    to  the  Authority  under  this Section, the Department shall
17    increase or decrease the amounts by an  amount  necessary  to
18    offset  any  miscalculation  of  previous disbursements.  The
19    offset amount  shall  be  the  amount  erroneously  disbursed
20    within  the  previous 6 months from the time a miscalculation
21    is discovered.
22        (i)  This Section may be cited as the Salem Civic  Center
23    Use and Occupation Tax Law.
24    (Source: P.A. 90-328, eff. 1-1-98.)

25        Section  40.   The  Local  Mass  Transit  District Act is
26    amended by changing Section 5.01 as follows:

27        (70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
28        Sec. 5.01. Metro East  Mass  Transit  District;  use  and
29    occupation taxes.
30        (a)  The Board of Trustees of any Metro East Mass Transit
31    District  may,  by  ordinance adopted with the concurrence of
32    two-thirds  of  the  then  trustees,  impose  throughout  the
 
                            -123-              LRB9110257SMdv
 1    District any or all of the taxes and fees  provided  in  this
 2    Section.  All taxes and fees imposed under this Section shall
 3    be  used only for public mass transportation systems, and the
 4    amount used to provide mass transit service to unserved areas
 5    of the District shall be in the same proportion to the  total
 6    proceeds  as  the  number of persons residing in the unserved
 7    areas is to the total population of the District.  Except  as
 8    otherwise  provided  in  this  Act,  taxes imposed under this
 9    Section and civil penalties imposed incident thereto shall be
10    collected and enforced by the State  Department  of  Revenue.
11    The Department shall have the power to administer and enforce
12    the  taxes  and  to  determine  all  rights  for  refunds for
13    erroneous payments of the taxes.
14        (b)  The Board may  impose  a  Metro  East  Mass  Transit
15    District  Retailers'  Occupation Tax upon all persons engaged
16    in the business of  selling  tangible  personal  property  at
17    retail  in  the  district  at  a  rate  of  1/4  of 1%, or as
18    authorized under subsection (d-5) of  this  Section,  of  the
19    gross  receipts  from  the  sales  made in the course of such
20    business within the district.  The  tax  imposed  under  this
21    Section  and  all  civil penalties that may be assessed as an
22    incident thereof shall be collected and enforced by the State
23    Department of Revenue.  The Department shall have full  power
24    to  administer and enforce this Section; to collect all taxes
25    and  penalties  so  collected  in  the   manner   hereinafter
26    provided;  and  to  determine  all rights to credit memoranda
27    arising on account of the erroneous payment of tax or penalty
28    hereunder.  In the administration of,  and  compliance  with,
29    this  Section,  the Department and persons who are subject to
30    this  Section  shall  have   the   same   rights,   remedies,
31    privileges,  immunities, powers and duties, and be subject to
32    the same conditions,  restrictions,  limitations,  penalties,
33    exclusions,  exemptions  and  definitions of terms and employ
34    the same modes of procedure, as are prescribed in Sections 1,
 
                            -124-              LRB9110257SMdv
 1    1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in  respect
 2    to  all provisions therein other than the State rate of tax),
 3    2c, 3 (except as to the disposition of  taxes  and  penalties
 4    collected), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
 5    6,  6a,  6b,  6c,  7,  8,  9,  10,  11, 12, 13, and 14 of the
 6    Retailers' Occupation Tax Act and Section 3-7 of the  Uniform
 7    Penalty  and  Interest  Act,  as fully as if those provisions
 8    were set forth herein.
 9        If the Board has not imposed a tax under this  subsection
10    on  the  sale  of  motor fuel or gasohol before the effective
11    date of this amendatory Act of  the  91st  General  Assembly,
12    then  the  Board shall not impose such a tax on or after that
13    date.  If the Board has imposed a tax under  this  subsection
14    on  the  sale  of  motor fuel or gasohol before the effective
15    date of this amendatory Act of  the  91st  General  Assembly,
16    then  the  Board shall not increase the rate of the tax on or
17    after that date.
18        Persons subject to any tax imposed under the Section  may
19    reimburse   themselves   for  their  seller's  tax  liability
20    hereunder by separately stating  the  tax  as  an  additional
21    charge,  which  charge  may  be  stated  in combination, in a
22    single amount, with State taxes that sellers are required  to
23    collect  under  the  Use  Tax  Act,  in  accordance with such
24    bracket schedules as the Department may prescribe.
25        Whenever the Department determines that a  refund  should
26    be made under this Section to a claimant instead of issuing a
27    credit  memorandum,  the  Department  shall  notify the State
28    Comptroller, who shall cause the warrant to be drawn for  the
29    amount   specified,   and   to   the  person  named,  in  the
30    notification from the Department.  The refund shall  be  paid
31    by  the  State  Treasurer  out of the Metro East Mass Transit
32    District tax fund established under  paragraph  (g)  of  this
33    Section.
34        If  a  tax  is  imposed  under this subsection (b), a tax
 
                            -125-              LRB9110257SMdv
 1    shall also be imposed under subsections (c) and (d)  of  this
 2    Section.
 3        For  the  purpose of determining whether a tax authorized
 4    under this  Section  is  applicable,  a  retail  sale,  by  a
 5    producer  of  coal  or  other mineral mined in Illinois, is a
 6    sale at retail at the place where the coal or  other  mineral
 7    mined   in  Illinois  is  extracted  from  the  earth.   This
 8    paragraph does not apply to coal or other mineral when it  is
 9    delivered  or  shipped  by  the  seller to the purchaser at a
10    point outside Illinois so that the sale is exempt  under  the
11    Federal  Constitution  as  a  sale  in  interstate or foreign
12    commerce.
13        Nothing in this Section shall be construed  to  authorize
14    the Metro East Mass Transit District to impose a tax upon the
15    privilege  of  engaging  in  any  business  which  under  the
16    Constitution of the United States may not be made the subject
17    of taxation by this State.
18        (c)  If  a  tax  has been imposed under subsection (b), a
19    Metro East Mass Transit District Service Occupation Tax shall
20    also be imposed upon all persons engaged, in the district, in
21    the business of making sales of service, who, as an  incident
22    to  making those sales of service, transfer tangible personal
23    property within the District, either in the form of  tangible
24    personal  property  or  in  the  form  of  real  estate as an
25    incident to a sale of service. The tax rate shall be 1/4%, or
26    as authorized under subsection (d-5) of this Section, of  the
27    selling  price  of  tangible personal property so transferred
28    within the district.  The tax imposed  under  this  paragraph
29    and  all  civil penalties that may be assessed as an incident
30    thereof  shall  be  collected  and  enforced  by  the   State
31    Department  of  Revenue. The Department shall have full power
32    to administer and enforce  this  paragraph;  to  collect  all
33    taxes  and  penalties  due hereunder; to dispose of taxes and
34    penalties so collected in the  manner  hereinafter  provided;
 
                            -126-              LRB9110257SMdv
 1    and  to  determine  all rights to credit memoranda arising on
 2    account of the erroneous payment of tax or penalty hereunder.
 3    In the administration of, and compliance with this paragraph,
 4    the Department and persons who are subject to this  paragraph
 5    shall have the same rights, remedies, privileges, immunities,
 6    powers  and  duties,  and  be subject to the same conditions,
 7    restrictions, limitations, penalties, exclusions,  exemptions
 8    and  definitions  of  terms  and  employ  the  same  modes of
 9    procedure as are prescribed in Sections 1a-1, 2 (except  that
10    the   reference  to  State  in  the  definition  of  supplier
11    maintaining a place of business in this State shall mean  the
12    Authority),  2a, 3 through 3-50 (in respect to all provisions
13    therein other than the State rate of tax), 4 (except that the
14    reference to the State shall be to the Authority),  5,  7,  8
15    (except  that  the  jurisdiction  to which the tax shall be a
16    debt to the extent indicated in that Section 8 shall  be  the
17    District),  9  (except  as  to  the  disposition of taxes and
18    penalties collected, and except that the returned merchandise
19    credit for this tax may not be taken against any State  tax),
20    10, 11, 12 (except the reference therein to Section 2b of the
21    Retailers' Occupation Tax Act), 13 (except that any reference
22    to the State shall mean the District), the first paragraph of
23    Section  15,  16, 17, 18, 19 and 20 of the Service Occupation
24    Tax Act and Section 3-7 of the Uniform Penalty  and  Interest
25    Act, as fully as if those provisions were set forth herein.
26        If  the Board has not imposed a tax under this subsection
27    on the selling price of motor  fuel  or  gasohol  before  the
28    effective  date  of  this  amendatory Act of the 91st General
29    Assembly, then the Board shall not impose such a  tax  on  or
30    after  that  date.  If the Board has imposed a tax under this
31    subsection on the selling price  of  motor  fuel  or  gasohol
32    before  the  effective  date  of  this  amendatory Act of the
33    General Assembly, then the Board shall not increase the  rate
34    of the tax on or after that date.
 
                            -127-              LRB9110257SMdv
 1        Persons  subject  to  any tax imposed under the authority
 2    granted in this paragraph may reimburse themselves for  their
 3    serviceman's  tax  liability  hereunder by separately stating
 4    the tax as an additional charge, which charge may  be  stated
 5    in  combination,  in  a  single  amount,  with State tax that
 6    servicemen are authorized to collect under  the  Service  Use
 7    Tax  Act,  in  accordance  with such bracket schedules as the
 8    Department may prescribe.
 9        Whenever the Department determines that a  refund  should
10    be made under this paragraph to a claimant instead of issuing
11    a  credit  memorandum,  the Department shall notify the State
12    Comptroller, who shall cause the warrant to be drawn for  the
13    amount   specified,   and   to   the  person  named,  in  the
14    notification from the Department.  The refund shall  be  paid
15    by  the  State  Treasurer  out of the Metro East Mass Transit
16    District tax fund established under  paragraph  (g)  of  this
17    Section.
18        Nothing in this paragraph shall be construed to authorize
19    the  District  to impose a tax upon the privilege of engaging
20    in any business which under the Constitution  of  the  United
21    States may not be made the subject of taxation by the State.
22        (d)  If  a  tax  has been imposed under subsection (b), a
23    Metro East Mass  Transit  District  Use  Tax  shall  also  be
24    imposed  upon  the  privilege  of using, in the district, any
25    item of tangible personal property that is purchased  outside
26    the district at retail from a retailer, and that is titled or
27    registered  with  an  agency of this State's government, at a
28    rate of 1/4%, or as authorized under subsection (d-5) of this
29    Section, of  the  selling  price  of  the  tangible  personal
30    property  within  the District, as "selling price" is defined
31    in the Use Tax Act.  The tax shall be collected from  persons
32    whose  Illinois  address for titling or registration purposes
33    is given  as  being  in  the  District.   The  tax  shall  be
34    collected  by  the  Department  of Revenue for the Metro East
 
                            -128-              LRB9110257SMdv
 1    Mass Transit District.  The tax must be paid to the State, or
 2    an  exemption  determination  must  be  obtained   from   the
 3    Department  of  Revenue,  before  the title or certificate of
 4    registration for the property may  be  issued.   The  tax  or
 5    proof  of  exemption  may be transmitted to the Department by
 6    way of the State agency with which, or the State officer with
 7    whom, the  tangible  personal  property  must  be  titled  or
 8    registered  if  the  Department and the State agency or State
 9    officer determine  that  this  procedure  will  expedite  the
10    processing of applications for title or registration.
11        The  Department  shall  have full power to administer and
12    enforce this paragraph; to collect all taxes,  penalties  and
13    interest  due  hereunder;  to dispose of taxes, penalties and
14    interest so collected in the manner hereinafter provided; and
15    to determine  all  rights  to  credit  memoranda  or  refunds
16    arising  on  account of the erroneous payment of tax, penalty
17    or  interest  hereunder.  In  the  administration   of,   and
18    compliance  with,  this paragraph, the Department and persons
19    who are subject to this paragraph shall have the same rights,
20    remedies, privileges, immunities, powers and duties,  and  be
21    subject  to  the  same conditions, restrictions, limitations,
22    penalties, exclusions, exemptions and  definitions  of  terms
23    and  employ the same modes of procedure, as are prescribed in
24    Sections 2 (except the definition of "retailer maintaining  a
25    place  of  business  in  this State"), 3 through 3-80 (except
26    provisions pertaining to the State rate of  tax,  and  except
27    provisions  concerning  collection or refunding of the tax by
28    retailers), 4, 11, 12, 12a, 14, 15, 19 (except  the  portions
29    pertaining  to  claims  by  retailers  and  except  the  last
30    paragraph  concerning  refunds), 20, 21 and 22 of the Use Tax
31    Act and Section 3-7 of the Uniform Penalty and Interest  Act,
32    that are not inconsistent with this paragraph, as fully as if
33    those provisions were set forth herein.
34        If  the Board has not imposed a tax under this subsection
 
                            -129-              LRB9110257SMdv
 1    on the use of motor fuel or gasohol before the effective date
 2    of this amendatory Act of the 91st General Assembly, then the
 3    Board shall not impose such a tax on or after that date.   If
 4    the  Board has imposed a tax under this subsection on the use
 5    of motor fuel or gasohol before the effective  date  of  this
 6    amendatory  Act  of the 91st General Assembly, then the Board
 7    shall not increase the rate of the tax on or after that date.
 8        Whenever the Department determines that a  refund  should
 9    be made under this paragraph to a claimant instead of issuing
10    a  credit  memorandum,  the Department shall notify the State
11    Comptroller, who shall cause the order to be  drawn  for  the
12    amount   specified,   and   to   the  person  named,  in  the
13    notification from the Department. The refund shall be paid by
14    the State Treasurer  out  of  the  Metro  East  Mass  Transit
15    District  tax  fund  established  under paragraph (g) of this
16    Section.
17        (d-5)  The county board of any  county  participating  in
18    the  Metro  East  Mass  Transit  District  may  authorize, by
19    ordinance, a referendum on the question of  whether  the  tax
20    rates  for  the  Metro  East Mass Transit District Retailers'
21    Occupation Tax, the Metro East Mass Transit District  Service
22    Occupation  Tax, and the Metro East Mass Transit District Use
23    Tax for the District should be increased from 0.25% to 0.75%.
24    Upon adopting the ordinance, the county board  shall  certify
25    the  proposition  to  the proper election officials who shall
26    submit the proposition to the voters of the District  at  the
27    next election, in accordance with the general election law.
28        The  proposition  shall be in substantially the following
29    form:
30             Shall the tax rates for the Metro East Mass  Transit
31        District  Retailers'  Occupation Tax, the Metro East Mass
32        Transit District Service Occupation Tax,  and  the  Metro
33        East  Mass  Transit  District  Use Tax be  increased from
34        0.25% to 0.75%?
 
                            -130-              LRB9110257SMdv
 1        The votes shall be  recorded  as  "YES"  or  "NO".  If  a
 2    majority  of  all  votes  cast on the proposition are for the
 3    increase in the  tax  rates,  the  Metro  East  Mass  Transit
 4    District  shall  begin  imposing  the  increased rates in the
 5    District,  and  the  Department  of   Revenue   shall   begin
 6    collecting  the  increased  amounts,  as  provided under this
 7    Section.  An  ordinance  imposing  or  discontinuing  a   tax
 8    hereunder  or effecting a change in the rate thereof shall be
 9    adopted  and  a  certified  copy  thereof  filed   with   the
10    Department  on  or before the first day of October, whereupon
11    the Department shall proceed to administer and  enforce  this
12    Section  as  of  the  first day of January next following the
13    adoption and filing.
14        If the voters  have  approved  a  referendum  under  this
15    subsection, before November 1, 1994, to increase the tax rate
16    under  this  subsection, the Metro East Mass Transit District
17    Board of Trustees may adopt by a majority vote  an  ordinance
18    at  any  time  before  January 1, 1995 that excludes from the
19    rate increase tangible personal property that  is  titled  or
20    registered  with  an  agency of this State's government.  The
21    ordinance excluding titled or  registered  tangible  personal
22    property  from  the  rate  increase  must  be  filed with the
23    Department at least 15 days before its effective date. At any
24    time after adopting an  ordinance  excluding  from  the  rate
25    increase   tangible  personal  property  that  is  titled  or
26    registered with an agency of  this  State's  government,  the
27    Metro  East Mass Transit District Board of Trustees may adopt
28    an ordinance applying the  rate  increase  to  that  tangible
29    personal  property.  The  ordinance  shall  be adopted, and a
30    certified copy of that ordinance  shall  be  filed  with  the
31    Department,  on or before October 1, whereupon the Department
32    shall proceed to administer and  enforce  the  rate  increase
33    against  tangible personal property titled or registered with
34    an agency of this State's  government  as  of  the  following
 
                            -131-              LRB9110257SMdv
 1    January  1.   After  December  31,  1995,  any reimposed rate
 2    increase in effect under  this  subsection  shall  no  longer
 3    apply to tangible personal property titled or registered with
 4    an  agency  of this State's government.  Beginning January 1,
 5    1996, the Board of Trustees of any Metro  East  Mass  Transit
 6    District  may  never  reimpose a previously excluded tax rate
 7    increase on tangible personal property titled  or  registered
 8    with an agency of this State's government.
 9        (d-6)  If  the  Board  of Trustees of any Metro East Mass
10    Transit District has imposed a rate increase under subsection
11    (d-5) and filed an ordinance with the Department  of  Revenue
12    excluding  titled  property  from  the higher rate, then that
13    Board may, by  ordinance  adopted  with  the  concurrence  of
14    two-thirds  of  the  then  trustees,  impose  throughout  the
15    District  a  fee.  The fee on the excluded property shall not
16    exceed $20 per retail transaction or an amount equal  to  the
17    amount  of  tax  excluded,  whichever  is  less,  on tangible
18    personal property that is titled or registered with an agency
19    of this State's government.   The Board of  Trustees  of  any
20    Metro  East  Mass  Transit  District shall have full power to
21    administer and enforce this subsection and to  determine  all
22    rights  to  credit memoranda or refunds arising on account of
23    the erroneous payment of the fee hereunder.  The Board  shall
24    proceed  to  administer and enforce this subsection as of the
25    first day of the second month following the adoption  of  the
26    ordinance.
27        (d-7)  If  a fee has been imposed under subsection (d-6),
28    a fee shall also be imposed upon the privilege of  using,  in
29    the  district, any item of tangible personal property that is
30    titled  or  registered  with  any  agency  of  this   State's
31    government,  in  an  amount  equal  to  the amount of the fee
32    imposed under subsection (d-6).  The Board of Trustees of any
33    Metro East Mass Transit District shall  have  full  power  to
34    administer  and  enforce this subsection and to determine all
 
                            -132-              LRB9110257SMdv
 1    rights to credit memoranda or refunds arising on  account  of
 2    the  erroneous payment of the fee hereunder.  The Board shall
 3    proceed   to   administer   and   enforce   this   subsection
 4    concurrently with the administration of the fee imposed under
 5    subsection (d-6).
 6        (d-8)  No item of titled property  shall  be  subject  to
 7    both  the  higher  rate approved by referendum, as authorized
 8    under subsection (d-5), and any fee imposed under  subsection
 9    (d-6) or (d-7).
10        (d-9)  If  fees have been imposed under subsections (d-6)
11    and (d-7), the Board shall forward a copy  of  the  ordinance
12    adopting  such  fees,  which  shall  include all zip codes in
13    whole or in part within the boundaries of  the  district,  to
14    the  Secretary  of  State within thirty days.  By the 25th of
15    each month, the Secretary of State shall subsequently provide
16    the Board with a list  of  identifiable  retail  transactions
17    subject to the .25% rate occurring within the zip codes which
18    are in whole or in part within the boundaries of the district
19    and  a  list  of  title applications for addresses within the
20    boundaries of the district for the previous month.
21        (d-10)  In  the  event  that  a  retailer  fails  to  pay
22    applicable  fees  within  30  days  of  the   date   of   the
23    transaction,  a  penalty shall be assessed at the rate of 25%
24    of the amount of  fees.   Interest  on  both  late  fees  and
25    penalties shall be assessed at the rate of 1% per month.  All
26    fees, penalties, and attorney fees shall constitute a lien on
27    the personal and real property of the retailer.  The Board of
28    Trustees  of  any Metro East Transit District shall have full
29    power to administer and enforce this subsection.
30        (e)  A certificate of registration issued  by  the  State
31    Department  of  Revenue  to  a  retailer under the Retailers'
32    Occupation Tax Act or under the Service  Occupation  Tax  Act
33    shall  permit  the registrant to engage in a business that is
34    taxed under the tax imposed under paragraphs (b), (c) or  (d)
 
                            -133-              LRB9110257SMdv
 1    of  this  Section  and  no  additional  registration shall be
 2    required under the tax. A certificate issued  under  the  Use
 3    Tax  Act  or the Service Use Tax Act shall be applicable with
 4    regard to  any  tax  imposed  under  paragraph  (c)  of  this
 5    Section.
 6        (f)  The  Board  may  impose a replacement vehicle tax of
 7    $50 on any passenger car, as defined in Section 1-157 of  the
 8    Illinois  Vehicle Code, purchased within the district area by
 9    or on behalf of an insurance company to replace  a  passenger
10    car of an insured person in settlement of a total loss claim.
11    The tax imposed may not become effective before the first day
12    of  the month following the passage of the ordinance imposing
13    the tax and receipt of a certified copy of the  ordinance  by
14    the  Department  of Revenue.  The Department of Revenue shall
15    collect the tax for the district in accordance with  Sections
16    3-2002 and 3-2003 of the Illinois Vehicle Code.
17        The  Department  shall  immediately pay over to the State
18    Treasurer,  ex  officio,  as  trustee,  all  taxes  collected
19    hereunder.  On or before the 25th day of each calendar month,
20    the Department shall prepare and certify to  the  Comptroller
21    the  disbursement of stated sums of money to named districts,
22    the districts to be those  from  which  retailers  have  paid
23    taxes  or  penalties  hereunder  to the Department during the
24    second preceding calendar month.  The amount to  be  paid  to
25    each  district shall be the amount collected hereunder during
26    the second preceding calendar month by the  Department,  less
27    any  amount  determined by the Department to be necessary for
28    the payment of refunds.  Within 10 days after receipt by  the
29    Comptroller   of   the   disbursement  certification  to  the
30    districts, provided for in this Section to be  given  to  the
31    Comptroller  by  the  Department, the Comptroller shall cause
32    the  orders  to  be  drawn  for  the  respective  amounts  in
33    accordance   with   the   directions   contained    in    the
34    certification.
 
                            -134-              LRB9110257SMdv
 1        (g)  Any  ordinance  imposing  or  discontinuing  any tax
 2    under this Section shall be  adopted  and  a  certified  copy
 3    thereof  filed  with  the  Department  on  or  before June 1,
 4    whereupon  the  Department  of  Revenue  shall   proceed   to
 5    administer  and  enforce  this Section on behalf of the Metro
 6    East Mass Transit District as of September 1  next  following
 7    such  adoption  and  filing.   Beginning  January 1, 1992, an
 8    ordinance or resolution imposing  or  discontinuing  the  tax
 9    hereunder shall be adopted and a certified copy thereof filed
10    with  the  Department  on  or  before  the first day of July,
11    whereupon the Department  shall  proceed  to  administer  and
12    enforce  this  Section  as  of  the first day of October next
13    following such adoption and  filing.   Beginning  January  1,
14    1993, except as provided in subsection (d-5) of this Section,
15    an  ordinance or resolution imposing or discontinuing the tax
16    hereunder shall be adopted and a certified copy thereof filed
17    with the Department on or before the first  day  of  October,
18    whereupon  the  Department  shall  proceed  to administer and
19    enforce this Section as of the  first  day  of  January  next
20    following such adoption and filing.
21        (h)  The   State   Department   of  Revenue  shall,  upon
22    collecting any taxes as provided in  this  Section,  pay  the
23    taxes  over  to  the  State  Treasurer  as  trustee  for  the
24    District. The taxes shall be held in a trust fund outside the
25    State  Treasury.  On  or before the 25th day of each calendar
26    month, the State Department  of  Revenue  shall  prepare  and
27    certify  to  the  Comptroller  of  the  State of Illinois the
28    amount to be paid to the District, which shall  be  the  then
29    balance  in  the  fund,  less  any  amount  determined by the
30    Department to be necessary for the payment of refunds. Within
31    10 days after receipt by the Comptroller of the certification
32    of the amount to be paid to  the  District,  the  Comptroller
33    shall  cause  an order to be drawn for payment for the amount
34    in accordance with the direction in the certification.
 
                            -135-              LRB9110257SMdv
 1    (Source: P.A. 91-51, eff. 6-30-99.)

 2        Section 45.  The Regional Transportation Authority Act is
 3    amended by changing Section 4.03 as follows:

 4        (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
 5        Sec. 4.03.  Taxes.
 6        (a)  In order to carry out any of the powers or  purposes
 7    of the Authority, the Board may by ordinance adopted with the
 8    concurrence of 9 of the then Directors, impose throughout the
 9    metropolitan  region any or all of the taxes provided in this
10    Section. Except as otherwise  provided  in  this  Act,  taxes
11    imposed  under  this  Section  and  civil  penalties  imposed
12    incident thereto shall be collected and enforced by the State
13    Department of Revenue. The Department shall have the power to
14    administer  and enforce the taxes and to determine all rights
15    for refunds for erroneous payments of the taxes.
16        (b)  The Board may impose  a  public  transportation  tax
17    upon  all  persons  engaged in the metropolitan region in the
18    business of selling at retail motor  fuel  for  operation  of
19    motor  vehicles  upon  public highways. The tax shall be at a
20    rate not to exceed 5% of the gross receipts from the sales of
21    motor fuel in the course of the business.  As  used  in  this
22    Act,  the term "motor fuel" shall have the same meaning as in
23    the Motor Fuel Tax Act.  The Board may provide for details of
24    the tax.  The provisions of any tax shall conform, as closely
25    as may be practicable, to the  provisions  of  the  Municipal
26    Retailers  Occupation  Tax Act, including without limitation,
27    conformity to penalties with respect to the tax  imposed  and
28    as  to  the  powers  of  the  State  Department of Revenue to
29    promulgate and enforce rules and regulations relating to  the
30    administration  and  enforcement of the provisions of the tax
31    imposed, except that reference in the Act to any municipality
32    shall refer to the Authority and the  tax  shall  be  imposed
 
                            -136-              LRB9110257SMdv
 1    only  with regard to receipts from sales of motor fuel in the
 2    metropolitan region, at rates as limited by this Section.
 3        If the Board has not imposed a tax under this  subsection
 4    before  the effective date of this amendatory Act of the 91st
 5    General Assembly, then the Board shall not impose such a  tax
 6    on  or after that date.  If the Board has imposed a tax under
 7    this subsection before the effective date of this  amendatory
 8    Act  of  91st  General  Assembly,  then  the  Board shall not
 9    increase the rate of the tax on or after that date.
10        (c)  In connection with the tax imposed  under  paragraph
11    (b)  of  this  Section  the  Board  may impose a tax upon the
12    privilege of using in the metropolitan region motor fuel  for
13    the  operation  of  a motor vehicle upon public highways, the
14    tax to be at a rate not in excess of the rate of tax  imposed
15    under  paragraph  (b) of this Section.  The Board may provide
16    for details of the tax.
17        If the Board has not imposed a tax under this  subsection
18    before  the effective date of this amendatory Act of the 91st
19    General Assembly, then the Board shall not impose such a  tax
20    on  or after that date.  If the Board has imposed a tax under
21    this subsection before the effective date of this  amendatory
22    Act  of  91st  General  Assembly,  then  the  Board shall not
23    increase the rate of the tax on or after that date.
24        (d)  The Board may impose a  motor  vehicle  parking  tax
25    upon  the  privilege  of parking motor vehicles at off-street
26    parking facilities in the metropolitan region at which a  fee
27    is charged, and may provide for reasonable classifications in
28    and exemptions to the tax, for administration and enforcement
29    thereof  and  for  civil penalties and refunds thereunder and
30    may  provide  criminal  penalties  thereunder,  the   maximum
31    penalties  not  to  exceed  the  maximum  criminal  penalties
32    provided  in the Retailers' Occupation Tax Act. The Authority
33    may collect and enforce the tax itself or  by  contract  with
34    any  unit  of  local  government.   The  State  Department of
 
                            -137-              LRB9110257SMdv
 1    Revenue shall have no responsibility for the  collection  and
 2    enforcement  unless  the Department agrees with the Authority
 3    to undertake the collection and enforcement.  As used in this
 4    paragraph, the term "parking facility" means a  parking  area
 5    or  structure  having parking spaces for more than 2 vehicles
 6    at which motor vehicles are permitted to park in  return  for
 7    an  hourly, daily, or other periodic fee, whether publicly or
 8    privately owned, but does not include  parking  spaces  on  a
 9    public  street,  the  use  of  which  is regulated by parking
10    meters.
11        (e)  The  Board  may  impose  a  Regional  Transportation
12    Authority Retailers' Occupation Tax upon all persons  engaged
13    in  the  business  of  selling  tangible personal property at
14    retail in the metropolitan region.  In Cook  County  the  tax
15    rate shall be 1% of the gross receipts from sales of food for
16    human  consumption  that  is  to be consumed off the premises
17    where it is sold (other than alcoholic beverages, soft drinks
18    and food that has been prepared  for  immediate  consumption)
19    and   prescription   and  nonprescription  medicines,  drugs,
20    medical appliances  and  insulin,  urine  testing  materials,
21    syringes and needles used by diabetics, and 3/4% of the gross
22    receipts  from other taxable sales made in the course of that
23    business.  In DuPage, Kane, Lake, McHenry, and Will Counties,
24    the tax rate shall be 1/4% of the  gross  receipts  from  all
25    taxable  sales  made in the course of that business.  The tax
26    imposed under this Section and all civil penalties  that  may
27    be  assessed  as  an  incident thereof shall be collected and
28    enforced by the State Department of Revenue.  The  Department
29    shall have full power to administer and enforce this Section;
30    to collect all taxes and penalties so collected in the manner
31    hereinafter  provided;  and to determine all rights to credit
32    memoranda arising on account of the erroneous payment of  tax
33    or   penalty   hereunder.   In  the  administration  of,  and
34    compliance with this Section, the Department and persons  who
 
                            -138-              LRB9110257SMdv
 1    are  subject  to  this  Section  shall  have the same rights,
 2    remedies, privileges, immunities, powers and duties,  and  be
 3    subject  to  the  same conditions, restrictions, limitations,
 4    penalties, exclusions, exemptions and definitions  of  terms,
 5    and  employ the same modes of procedure, as are prescribed in
 6    Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through  2-65
 7    (in  respect  to  all provisions therein other than the State
 8    rate of tax), 2c, 3 (except as to the  disposition  of  taxes
 9    and  penalties  collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
10    5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13
11    of the Retailers' Occupation Tax Act and Section 3-7  of  the
12    Uniform  Penalty  and  Interest  Act,  as  fully  as if those
13    provisions were set forth herein.
14        If the Board has not imposed a tax under this  subsection
15    on  the  sale  of  motor fuel or gasohol before the effective
16    date of this amendatory Act of  the  91st  General  Assembly,
17    then  the  Board shall not impose such a tax on or after that
18    date.  If the Board has imposed a tax under  this  subsection
19    on  the  sale  of  motor fuel or gasohol before the effective
20    date of this amendatory Act of  the  91st  General  Assembly,
21    then  the  Board shall not increase the rate of the tax on or
22    after that date.
23        Persons subject to any tax imposed  under  the  authority
24    granted  in  this  Section may reimburse themselves for their
25    seller's tax liability hereunder by  separately  stating  the
26    tax  as  an  additional charge, which charge may be stated in
27    combination in a single amount with State taxes that  sellers
28    are  required  to  collect  under  the Use Tax Act, under any
29    bracket schedules the Department may prescribe.
30        Whenever the Department determines that a  refund  should
31    be made under this Section to a claimant instead of issuing a
32    credit  memorandum,  the  Department  shall  notify the State
33    Comptroller, who shall cause the warrant to be drawn for  the
34    amount   specified,   and   to   the  person  named,  in  the
 
                            -139-              LRB9110257SMdv
 1    notification from the Department.  The refund shall  be  paid
 2    by  the  State  Treasurer  out of the Regional Transportation
 3    Authority tax fund established under paragraph  (n)  of  this
 4    Section.
 5        If  a  tax  is  imposed  under this subsection (e), a tax
 6    shall also be imposed under subsections (f) and (g)  of  this
 7    Section.
 8        For  the  purpose of determining whether a tax authorized
 9    under this Section is applicable, a retail sale by a producer
10    of coal or other mineral mined in  Illinois,  is  a  sale  at
11    retail  at the place where the coal or other mineral mined in
12    Illinois is extracted from the earth. This paragraph does not
13    apply to coal or  other  mineral  when  it  is  delivered  or
14    shipped  by  the  seller  to the purchaser at a point outside
15    Illinois so  that  the  sale  is  exempt  under  the  Federal
16    Constitution as a sale in interstate or foreign commerce.
17        Nothing  in  this Section shall be construed to authorize
18    the Regional Transportation Authority to impose  a  tax  upon
19    the  privilege  of  engaging  in  any business that under the
20    Constitution of the United States may not be made the subject
21    of taxation by this State.
22        (f)  If a tax has been imposed under paragraph (e), a tax
23    shall also be  imposed  upon  all  persons  engaged,  in  the
24    metropolitan  region  in  the  business  of  making  sales of
25    service, who as an incident to making the sales  of  service,
26    transfer  tangible  personal property within the metropolitan
27    region, either in the form of tangible personal  property  or
28    in  the  form  of  real  estate  as  an incident to a sale of
29    service.  In Cook County, the tax rate shall be:  (1)  1%  of
30    the  serviceman's  cost  price of food prepared for immediate
31    consumption and transferred incident to  a  sale  of  service
32    subject  to  the service occupation tax by an entity licensed
33    under the Hospital Licensing Act or the Nursing Home Care Act
34    that is located in the metropolitan region;  (2)  1%  of  the
 
                            -140-              LRB9110257SMdv
 1    selling  price  of  food  for human consumption that is to be
 2    consumed off the  premises  where  it  is  sold  (other  than
 3    alcoholic  beverages,  soft  drinks  and  food  that has been
 4    prepared for  immediate  consumption)  and  prescription  and
 5    nonprescription  medicines,  drugs,  medical  appliances  and
 6    insulin,  urine  testing materials, syringes and needles used
 7    by diabetics; and (3) 3/4% of the selling  price  from  other
 8    taxable  sales of tangible personal property transferred.  In
 9    DuPage, Kane, Lake, McHenry and Will Counties the rate  shall
10    be  1/4%  of  the  selling  price  of  all  tangible personal
11    property transferred.
12        The tax  imposed  under  this  paragraph  and  all  civil
13    penalties  that  may be assessed as an incident thereof shall
14    be collected and enforced by the State Department of Revenue.
15    The Department  shall  have  full  power  to  administer  and
16    enforce  this  paragraph;  to collect all taxes and penalties
17    due hereunder; to dispose of taxes and penalties collected in
18    the manner hereinafter provided; and to determine all  rights
19    to  credit  memoranda  arising  on  account  of the erroneous
20    payment of tax or penalty hereunder.  In  the  administration
21    of  and  compliance  with  this paragraph, the Department and
22    persons who are subject to this paragraph shall have the same
23    rights, remedies, privileges, immunities, powers and  duties,
24    and   be   subject  to  the  same  conditions,  restrictions,
25    limitations,   penalties,    exclusions,    exemptions    and
26    definitions of terms, and employ the same modes of procedure,
27    as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
28    respect  to  all provisions therein other than the State rate
29    of tax), 4 (except that the reference to the State  shall  be
30    to  the  Authority), 5, 7, 8 (except that the jurisdiction to
31    which the tax shall be a debt to the extent indicated in that
32    Section 8 shall be  the  Authority),  9  (except  as  to  the
33    disposition of taxes and penalties collected, and except that
34    the returned merchandise credit for this tax may not be taken
 
                            -141-              LRB9110257SMdv
 1    against  any  State  tax),  10,  11, 12 (except the reference
 2    therein to Section 2b of the Retailers' Occupation Tax  Act),
 3    13  (except  that  any  reference to the State shall mean the
 4    Authority), the first paragraph of Section 15, 16, 17, 18, 19
 5    and 20 of the Service Occupation Tax Act and Section  3-7  of
 6    the  Uniform  Penalty  and Interest Act, as fully as if those
 7    provisions were set forth herein.
 8        If the Board has not imposed a tax under this  subsection
 9    on  the  selling  price  of  motor fuel or gasohol before the
10    effective date of this amendatory Act  of  the  91st  General
11    Assembly,  then  the  Board shall not impose such a tax on or
12    after that date.  If the Board has imposed a tax  under  this
13    subsection  on  the  selling  price  of motor fuel or gasohol
14    before the effective date of this amendatory Act of the  91st
15    General  Assembly, then the Board shall not increase the rate
16    of the tax on or after that date.
17        Persons subject to any tax imposed  under  the  authority
18    granted  in this paragraph may reimburse themselves for their
19    serviceman's tax liability hereunder  by  separately  stating
20    the tax as an additional charge, that charge may be stated in
21    combination in a single amount with State tax that servicemen
22    are  authorized  to  collect  under  the Service Use Tax Act,
23    under any bracket schedules the Department may prescribe.
24        Whenever the Department determines that a  refund  should
25    be made under this paragraph to a claimant instead of issuing
26    a  credit  memorandum,  the Department shall notify the State
27    Comptroller, who shall cause the warrant to be drawn for  the
28    amount specified, and to the person named in the notification
29    from  the  Department.  The refund shall be paid by the State
30    Treasurer out of the Regional  Transportation  Authority  tax
31    fund established under paragraph (n) of this Section.
32        Nothing in this paragraph shall be construed to authorize
33    the  Authority to impose a tax upon the privilege of engaging
34    in any business that under the  Constitution  of  the  United
 
                            -142-              LRB9110257SMdv
 1    States may not be made the subject of taxation by the State.
 2        (g)  If a tax has been imposed under paragraph (e), a tax
 3    shall  also  be  imposed  upon  the privilege of using in the
 4    metropolitan region, any item of tangible  personal  property
 5    that  is  purchased outside the metropolitan region at retail
 6    from a retailer, and that is titled  or  registered  with  an
 7    agency  of  this  State's government.  In Cook County the tax
 8    rate shall be 3/4% of  the  selling  price  of  the  tangible
 9    personal  property,  as "selling price" is defined in the Use
10    Tax Act.  In DuPage, Kane, Lake, McHenry  and  Will  counties
11    the  tax  rate  shall  be  1/4%  of  the selling price of the
12    tangible personal property, as "selling price" is defined  in
13    the  Use  Tax  Act.   The tax shall be collected from persons
14    whose Illinois address for titling or  registration  purposes
15    is  given  as being in the metropolitan region. The tax shall
16    be collected by the Department of Revenue  for  the  Regional
17    Transportation Authority.  The tax must be paid to the State,
18    or  an  exemption  determination  must  be  obtained from the
19    Department of Revenue, before the  title  or  certificate  of
20    registration for the property may be issued. The tax or proof
21    of  exemption  may be transmitted to the Department by way of
22    the State agency with which, or the State officer with  whom,
23    the  tangible  personal property must be titled or registered
24    if the Department and  the  State  agency  or  State  officer
25    determine that this procedure will expedite the processing of
26    applications for title or registration.
27        The  Department  shall  have full power to administer and
28    enforce this paragraph; to collect all taxes,  penalties  and
29    interest  due  hereunder;  to dispose of taxes, penalties and
30    interest collected in the manner hereinafter provided; and to
31    determine all rights to credit memoranda or  refunds  arising
32    on  account  of  the  erroneous  payment  of  tax, penalty or
33    interest hereunder. In the administration of  and  compliance
34    with  this  paragraph,  the  Department  and  persons who are
 
                            -143-              LRB9110257SMdv
 1    subject  to  this  paragraph  shall  have  the  same  rights,
 2    remedies, privileges, immunities, powers and duties,  and  be
 3    subject  to  the  same conditions, restrictions, limitations,
 4    penalties, exclusions, exemptions and  definitions  of  terms
 5    and  employ the same modes of procedure, as are prescribed in
 6    Sections 2 (except the definition of "retailer maintaining  a
 7    place  of  business  in  this State"), 3 through 3-80 (except
 8    provisions pertaining to the State rate of  tax,  and  except
 9    provisions  concerning  collection or refunding of the tax by
10    retailers), 4, 11, 12, 12a, 14, 15, 19 (except  the  portions
11    pertaining  to  claims  by  retailers  and  except  the  last
12    paragraph  concerning  refunds), 20, 21 and 22 of the Use Tax
13    Act, and are not inconsistent with this paragraph,  as  fully
14    as if those provisions were set forth herein.
15        If  the Board has not imposed a tax under this subsection
16    on the use of motor fuel or gasohol before the effective date
17    of this amendatory Act of the 91st General Assembly, then the
18    Board shall not impose such a tax on or after that date.   If
19    the  Board has imposed a tax under this subsection on the use
20    of motor fuel or gasohol before the effective  date  of  this
21    amendatory  Act  of the 91st General Assembly, then the Board
22    shall not increase the rate of the tax on or after that date.
23        Whenever the Department determines that a  refund  should
24    be made under this paragraph to a claimant instead of issuing
25    a  credit  memorandum,  the Department shall notify the State
26    Comptroller, who shall cause the order to be  drawn  for  the
27    amount specified, and to the person named in the notification
28    from  the  Department.  The refund shall be paid by the State
29    Treasurer out of the Regional  Transportation  Authority  tax
30    fund established under paragraph (n) of this Section.
31        (h)  The  Authority  may impose a replacement vehicle tax
32    of $50 on any passenger car as defined in  Section  1-157  of
33    the  Illinois  Vehicle Code purchased within the metropolitan
34    region by or on behalf of an insurance company to  replace  a
 
                            -144-              LRB9110257SMdv
 1    passenger  car  of an insured person in settlement of a total
 2    loss claim. The tax imposed may not become  effective  before
 3    the  first  day  of  the  month  following the passage of the
 4    ordinance imposing the tax and receipt of a certified copy of
 5    the ordinance by the Department of Revenue.   The  Department
 6    of  Revenue  shall  collect  the  tax  for  the  Authority in
 7    accordance with Sections 3-2002 and 3-2003  of  the  Illinois
 8    Vehicle Code.
 9        The  Department  shall  immediately pay over to the State
10    Treasurer,  ex  officio,  as  trustee,  all  taxes  collected
11    hereunder.  On or before the 25th day of each calendar month,
12    the Department shall prepare and certify to  the  Comptroller
13    the  disbursement  of  stated sums of money to the Authority.
14    The amount to be paid to the Authority shall  be  the  amount
15    collected  hereunder  during  the  second  preceding calendar
16    month by the Department, less any amount  determined  by  the
17    Department  to  be  necessary  for  the  payment  of refunds.
18    Within 10 days  after  receipt  by  the  Comptroller  of  the
19    disbursement  certification  to the Authority provided for in
20    this  Section  to  be  given  to  the  Comptroller   by   the
21    Department,  the  Comptroller  shall  cause  the orders to be
22    drawn for that  amount  in  accordance  with  the  directions
23    contained in the certification.
24        (i)  The  Board  may not impose any other taxes except as
25    it may from time to time be authorized by law to impose.
26        (j)  A certificate of registration issued  by  the  State
27    Department  of  Revenue  to  a  retailer under the Retailers'
28    Occupation Tax Act or under the Service  Occupation  Tax  Act
29    shall  permit  the registrant to engage in a business that is
30    taxed under the tax imposed under paragraphs (b), (e), (f) or
31    (g) of this Section and no additional registration  shall  be
32    required  under  the tax.  A certificate issued under the Use
33    Tax Act or the Service Use Tax Act shall be  applicable  with
34    regard  to  any  tax  imposed  under  paragraph  (c)  of this
 
                            -145-              LRB9110257SMdv
 1    Section.
 2        (k)  The provisions of any tax  imposed  under  paragraph
 3    (c)  of  this  Section  shall  conform  as  closely as may be
 4    practicable to the provisions of the Use Tax  Act,  including
 5    without limitation conformity as to penalties with respect to
 6    the  tax imposed and as to the powers of the State Department
 7    of Revenue to promulgate and enforce  rules  and  regulations
 8    relating   to  the  administration  and  enforcement  of  the
 9    provisions of the tax imposed. The  taxes  shall  be  imposed
10    only  on  use  within the metropolitan region and at rates as
11    provided in the paragraph.
12        (l)  The  Board  in  imposing  any  tax  as  provided  in
13    paragraphs (b) and (c) of this Section, shall, after  seeking
14    the  advice of the State Department of Revenue, provide means
15    for retailers, users or purchasers of motor fuel for purposes
16    other than those with  regard  to  which  the  taxes  may  be
17    imposed as provided in those paragraphs to receive refunds of
18    taxes  improperly  paid,  which provisions may be at variance
19    with the refund provisions as applicable under the  Municipal
20    Retailers  Occupation  Tax  Act.   The  State  Department  of
21    Revenue  may  provide  for  certificates  of registration for
22    users or purchasers of motor fuel  for  purposes  other  than
23    those  with  regard to which taxes may be imposed as provided
24    in paragraphs (b) and (c) of this Section to  facilitate  the
25    reporting and nontaxability of the exempt sales or uses.
26        (m)  Any  ordinance  imposing  or  discontinuing  any tax
27    under this Section shall be  adopted  and  a  certified  copy
28    thereof  filed  with  the  Department  on  or  before June 1,
29    whereupon  the  Department  of  Revenue  shall   proceed   to
30    administer and enforce this Section on behalf of the Regional
31    Transportation  Authority  as  of  September 1 next following
32    such adoption and  filing.  Beginning  January  1,  1992,  an
33    ordinance  or  resolution  imposing  or discontinuing the tax
34    hereunder shall be adopted and a certified copy thereof filed
 
                            -146-              LRB9110257SMdv
 1    with the Department on or  before  the  first  day  of  July,
 2    whereupon  the  Department  shall  proceed  to administer and
 3    enforce this Section as of the  first  day  of  October  next
 4    following  such  adoption  and  filing.  Beginning January 1,
 5    1993, an ordinance or resolution  imposing  or  discontinuing
 6    the  tax  hereunder  shall  be  adopted  and a certified copy
 7    thereof filed with the Department on or before the first  day
 8    of   October,  whereupon  the  Department  shall  proceed  to
 9    administer and enforce this Section as of the  first  day  of
10    January next following such adoption and filing.
11        (n)  The   State   Department   of  Revenue  shall,  upon
12    collecting any taxes as provided in  this  Section,  pay  the
13    taxes  over  to  the  State  Treasurer  as  trustee  for  the
14    Authority.   The  taxes shall be held in a trust fund outside
15    the State Treasury.  On  or  before  the  25th  day  of  each
16    calendar month, the State Department of Revenue shall prepare
17    and  certify  to the Comptroller of the State of Illinois the
18    amount to be paid to the Authority, which shall be  the  then
19    balance  in  the  fund,  less  any  amount  determined by the
20    Department to be necessary for the payment  of  refunds.  The
21    State  Department  of  Revenue  shall  also  certify  to  the
22    Authority  the amount of taxes collected in each County other
23    than Cook County in the metropolitan region less  the  amount
24    necessary  for  the  payment  of  refunds to taxpayers in the
25    County.  With regard to the County of Cook, the certification
26    shall specify the amount of taxes collected within  the  City
27    of  Chicago  less  the  amount  necessary  for the payment of
28    refunds to taxpayers in the City of Chicago  and  the  amount
29    collected  in  that portion of Cook County outside of Chicago
30    less the amount necessary  for  the  payment  of  refunds  to
31    taxpayers  in that portion of Cook County outside of Chicago.
32    Within 10 days  after  receipt  by  the  Comptroller  of  the
33    certification  of the amount to be paid to the Authority, the
34    Comptroller shall cause an order to be drawn for the  payment
 
                            -147-              LRB9110257SMdv
 1    for  the  amount  in  accordance  with  the  direction in the
 2    certification.
 3        In addition to the disbursement required by the preceding
 4    paragraph, an allocation shall be made in July 1991 and  each
 5    year  thereafter  to  the  Regional Transportation Authority.
 6    The allocation shall be  made  in  an  amount  equal  to  the
 7    average  monthly  distribution  during the preceding calendar
 8    year (excluding the 2 months  of  lowest  receipts)  and  the
 9    allocation  shall  include  the  amount  of  average  monthly
10    distribution   from  the  Regional  Transportation  Authority
11    Occupation and Use Tax Replacement  Fund.   The  distribution
12    made  in  July  1992  and  each  year  thereafter  under this
13    paragraph and the preceding paragraph shall be reduced by the
14    amount allocated and disbursed under this  paragraph  in  the
15    preceding  calendar  year.   The  Department of Revenue shall
16    prepare and certify to the Comptroller for  disbursement  the
17    allocations made in accordance with this paragraph.
18        (o)  Failure  to adopt a budget ordinance or otherwise to
19    comply with Section 4.01 of this Act or to adopt a  Five-year
20    Program  or otherwise to comply with paragraph (b) of Section
21    2.01 of this Act shall not affect the  validity  of  any  tax
22    imposed by the Authority otherwise in conformity with law.
23        (p)  At  no  time  shall  a  public transportation tax or
24    motor vehicle parking tax authorized  under  paragraphs  (b),
25    (c)  and (d) of this Section be in effect at the same time as
26    any retailers' occupation,  use  or  service  occupation  tax
27    authorized  under paragraphs (e), (f) and (g) of this Section
28    is in effect.
29        Any  taxes  imposed  under  the  authority  provided   in
30    paragraphs (b), (c) and (d) shall remain in effect only until
31    the  time as any tax authorized by paragraphs (e), (f) or (g)
32    of this Section are imposed and becomes effective.  Once  any
33    tax  authorized  by paragraphs (e), (f) or (g) is imposed the
34    Board may not reimpose taxes as authorized in paragraphs (b),
 
                            -148-              LRB9110257SMdv
 1    (c) and (d) of the  Section  unless  any  tax  authorized  by
 2    paragraphs   (e),   (f)   or  (g)  of  this  Section  becomes
 3    ineffective by means other than an ordinance of the Board.
 4        (q)  Any  existing  rights,  remedies   and   obligations
 5    (including   enforcement   by   the  Regional  Transportation
 6    Authority) arising under any  tax  imposed  under  paragraphs
 7    (b),  (c) or (d) of this Section shall not be affected by the
 8    imposition of a tax under paragraphs (e), (f) or (g) of  this
 9    Section.
10    (Source: P.A. 91-51, eff. 6-30-99.)

11        Section  50.  The Water Commission Act of 1985 is amended
12    by changing Section 4 as follows:

13        (70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
14        Sec. 4.  Taxes.
15        (a)  The board  of  commissioners  of  any  county  water
16    commission may, by ordinance, impose throughout the territory
17    of  the  commission  any or all of the taxes provided in this
18    Section for its corporate purposes. However, no county  water
19    commission  may  impose  any  such  tax unless the commission
20    certifies the proposition of imposing the tax to  the  proper
21    election  officials,  who shall submit the proposition to the
22    voters residing in the territory at an election in accordance
23    with the general election law, and the proposition  has  been
24    approved by a majority of those voting on the proposition.
25        The  proposition shall be in the form provided in Section
26    5 or shall be substantially in the following form:
27    -------------------------------------------------------------
28        Shall the (insert corporate
29    name of county water commission)           YES
30    impose (state type of tax or         ------------------------
31    taxes to be imposed) at the                NO
32    rate of 1/4%?
 
                            -149-              LRB9110257SMdv
 1    -------------------------------------------------------------
 2        Taxes imposed under  this  Section  and  civil  penalties
 3    imposed  incident  thereto shall be collected and enforced by
 4    the State Department of Revenue. The  Department  shall  have
 5    the  power  to  administer  and  enforce  the  taxes  and  to
 6    determine  all  rights  for refunds for erroneous payments of
 7    the taxes.
 8        (b)  The board of commissioners may impose a County Water
 9    Commission Retailers' Occupation Tax upon all persons engaged
10    in the business of  selling  tangible  personal  property  at
11    retail  in  the territory of the commission at a rate of 1/4%
12    of the gross receipts from the sales made in  the  course  of
13    such  business  within  the territory.  The tax imposed under
14    this paragraph and all civil penalties that may  be  assessed
15    as an incident thereof shall be collected and enforced by the
16    State  Department  of Revenue. The Department shall have full
17    power to administer and enforce this  paragraph;  to  collect
18    all  taxes  and  penalties due hereunder; to dispose of taxes
19    and  penalties  so  collected  in  the   manner   hereinafter
20    provided;  and  to  determine  all rights to credit memoranda
21    arising on account of the erroneous payment of tax or penalty
22    hereunder.  In the administration of,  and  compliance  with,
23    this paragraph, the Department and persons who are subject to
24    this   paragraph   shall  have  the  same  rights,  remedies,
25    privileges, immunities, powers and duties, and be subject  to
26    the  same  conditions,  restrictions, limitations, penalties,
27    exclusions, exemptions and definitions of terms,  and  employ
28    the same modes of procedure, as are prescribed in Sections 1,
29    1a,  1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect
30    to all provisions therein other than the State  rate  of  tax
31    except that food for human consumption that is to be consumed
32    off  the  premises  where  it  is  sold (other than alcoholic
33    beverages, soft drinks, and food that has been  prepared  for
34    immediate  consumption)  and prescription and nonprescription
 
                            -150-              LRB9110257SMdv
 1    medicine,  drugs,  medical  appliances  and  insulin,   urine
 2    testing  materials,  syringes, and needles used by diabetics,
 3    for human use, shall not be subject to tax hereunder), 2c,  3
 4    (except   as  to  the  disposition  of  taxes  and  penalties
 5    collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
 6    5l, 6, 6a, 6b, 6c, 7,  8,  9,  10,  11,  12  and  13  of  the
 7    Retailers'  Occupation Tax Act and Section 3-7 of the Uniform
 8    Penalty and Interest Act, as fully  as  if  those  provisions
 9    were set forth herein.
10        If the board of commissioners has not imposed a tax under
11    this  subsection  on the sale of motor fuel or gasohol before
12    the effective date of this amendatory Act of the 91st General
13    Assembly, then the board shall not impose such a  tax  on  or
14    after that date.  If the board of commissioners has imposed a
15    tax  under  this  subsection  on  the  sale  of motor fuel or
16    gasohol before the effective date of this amendatory  Act  of
17    the  91st General Assembly, then the board shall not increase
18    the rate of the tax on or after that date.
19        Persons subject to any tax imposed  under  the  authority
20    granted  in this paragraph may reimburse themselves for their
21    seller's tax liability hereunder by  separately  stating  the
22    tax  as  an  additional charge, which charge may be stated in
23    combination, in  a  single  amount,  with  State  taxes  that
24    sellers  are  required  to  collect under the Use Tax Act and
25    under  subsection  (e)  of  Section  4.03  of  the   Regional
26    Transportation Authority Act, in accordance with such bracket
27    schedules as the Department may prescribe.
28        Whenever  the  Department determines that a refund should
29    be made under this paragraph to a claimant instead of issuing
30    a credit memorandum, the Department shall  notify  the  State
31    Comptroller,  who shall cause the warrant to be drawn for the
32    amount  specified,  and  to  the   person   named,   in   the
33    notification  from  the Department.  The refund shall be paid
34    by the State Treasurer out of a county water  commission  tax
 
                            -151-              LRB9110257SMdv
 1    fund established under paragraph (g) of this Section.
 2        For  the  purpose of determining whether a tax authorized
 3    under this paragraph  is  applicable,  a  retail  sale  by  a
 4    producer of coal or other mineral mined in Illinois is a sale
 5    at  retail at the place where the coal or other mineral mined
 6    in Illinois is extracted from the earth.  This paragraph does
 7    not apply to coal or other mineral when it  is  delivered  or
 8    shipped  by  the  seller  to the purchaser at a point outside
 9    Illinois so  that  the  sale  is  exempt  under  the  Federal
10    Constitution as a sale in interstate or foreign commerce.
11        If a tax is imposed under this subsection (b) a tax shall
12    also  be  imposed  under  subsections  (c)  and  (d)  of this
13    Section.
14        Nothing in this paragraph shall be construed to authorize
15    a county water commission to impose a tax upon the  privilege
16    of  engaging  in any business which under the Constitution of
17    the United States may not be made the subject of taxation  by
18    this State.
19        (c)  If  a  tax  has been imposed under subsection (b), a
20    tax shall also be imposed upon all persons  engaged,  in  the
21    territory  of the commission, in the business of making sales
22    of service, who, as  an  incident  to  making  the  sales  of
23    service,  transfer  tangible  personal  property  within  the
24    territory. The tax rate shall be 1/4% of the selling price of
25    tangible   personal   property   so  transferred  within  the
26    territory.  The tax imposed  under  this  paragraph  and  all
27    civil  penalties  that may be assessed as an incident thereof
28    shall be collected and enforced by the  State  Department  of
29    Revenue.  The  Department shall have full power to administer
30    and  enforce  this  paragraph;  to  collect  all  taxes   and
31    penalties due hereunder; to dispose of taxes and penalties so
32    collected   in   the  manner  hereinafter  provided;  and  to
33    determine all rights to credit memoranda arising  on  account
34    of the erroneous payment of tax or penalty hereunder.  In the
 
                            -152-              LRB9110257SMdv
 1    administration  of,  and compliance with, this paragraph, the
 2    Department and persons who  are  subject  to  this  paragraph
 3    shall have the same rights, remedies, privileges, immunities,
 4    powers  and  duties,  and  be subject to the same conditions,
 5    restrictions, limitations, penalties, exclusions,  exemptions
 6    and  definitions  of  terms,  and  employ  the  same modes of
 7    procedure, as are prescribed in Sections 1a-1, 2 (except that
 8    the  reference  to  State  in  the  definition  of   supplier
 9    maintaining  a place of business in this State shall mean the
10    territory of the commission), 2a, 3 through 3-50 (in  respect
11    to  all  provisions  therein other than the State rate of tax
12    except that food for human consumption that is to be consumed
13    off the premises where  it  is  sold  (other  than  alcoholic
14    beverages,  soft  drinks, and food that has been prepared for
15    immediate consumption) and prescription  and  nonprescription
16    medicines,  drugs,  medical  appliances  and  insulin,  urine
17    testing  materials,  syringes, and needles used by diabetics,
18    for human use, shall not be  subject  to  tax  hereunder),  4
19    (except  that  the  reference  to  the  State shall be to the
20    territory of the  commission),  5,  7,  8  (except  that  the
21    jurisdiction  to  which the tax shall be a debt to the extent
22    indicated in that Section  8  shall  be  the  commission),  9
23    (except   as  to  the  disposition  of  taxes  and  penalties
24    collected and except that the returned merchandise credit for
25    this tax may not be taken against any State tax), 10, 11,  12
26    (except the reference therein to Section 2b of the Retailers'
27    Occupation  Tax  Act),  13  (except that any reference to the
28    State shall mean the territory of the commission), the  first
29    paragraph  of  Section 15, 15.5, 16, 17, 18, 19 and 20 of the
30    Service Occupation Tax Act as fully as  if  those  provisions
31    were set forth herein.
32        If the board of commissioners has not imposed a tax under
33    this subsection on the selling price of motor fuel or gasohol
34    before  the effective date of this amendatory Act of the 91st
 
                            -153-              LRB9110257SMdv
 1    General Assembly, then the board shall not impose such a  tax
 2    on  or  after  that  date.  If the board of commissioners has
 3    imposed a tax under this subsection on the selling  price  of
 4    motor  fuel  or  gasohol  before  the  effective date of this
 5    amendatory Act of the 91st General Assembly, then  the  board
 6    shall not increase the rate of the tax on or after that date.
 7        Persons  subject  to  any tax imposed under the authority
 8    granted in this paragraph may reimburse themselves for  their
 9    serviceman's  tax  liability  hereunder by separately stating
10    the tax as an additional charge, which charge may  be  stated
11    in  combination,  in  a  single  amount,  with State tax that
12    servicemen are authorized to collect under  the  Service  Use
13    Tax Act, and any tax for which servicemen may be liable under
14    subsection  (f)  of  Sec. 4.03 of the Regional Transportation
15    Authority Act, in accordance with such bracket  schedules  as
16    the Department may prescribe.
17        Whenever  the  Department determines that a refund should
18    be made under this paragraph to a claimant instead of issuing
19    a credit memorandum, the Department shall  notify  the  State
20    Comptroller,  who shall cause the warrant to be drawn for the
21    amount  specified,  and  to  the   person   named,   in   the
22    notification  from  the Department.  The refund shall be paid
23    by the State Treasurer out of a county water  commission  tax
24    fund established under paragraph (g) of this Section.
25        Nothing in this paragraph shall be construed to authorize
26    a  county water commission to impose a tax upon the privilege
27    of engaging in any business which under the  Constitution  of
28    the  United States may not be made the subject of taxation by
29    the State.
30        (d)  If a tax has been imposed under  subsection  (b),  a
31    tax  shall  also  imposed upon the privilege of using, in the
32    territory of the commission, any item  of  tangible  personal
33    property  that  is  purchased outside the territory at retail
34    from a retailer, and that is titled  or  registered  with  an
 
                            -154-              LRB9110257SMdv
 1    agency  of  this State's government, at a rate of 1/4% of the
 2    selling price of the tangible personal  property  within  the
 3    territory,  as "selling price" is defined in the Use Tax Act.
 4    The tax  shall  be  collected  from  persons  whose  Illinois
 5    address  for  titling  or  registration  purposes is given as
 6    being in the territory.  The tax shall be  collected  by  the
 7    Department of Revenue for a county water commission.  The tax
 8    must be paid to the State, or an exemption determination must
 9    be  obtained from the Department of Revenue, before the title
10    or certificate  of  registration  for  the  property  may  be
11    issued.  The  tax or proof of exemption may be transmitted to
12    the Department by way of the State agency with which, or  the
13    State  officer with whom, the tangible personal property must
14    be titled or registered  if  the  Department  and  the  State
15    agency  or  State  officer determine that this procedure will
16    expedite  the  processing  of  applications  for   title   or
17    registration.
18        The  Department  shall  have full power to administer and
19    enforce this paragraph; to collect all taxes,  penalties  and
20    interest  due  hereunder;  to dispose of taxes, penalties and
21    interest so collected in the manner hereinafter provided; and
22    to determine  all  rights  to  credit  memoranda  or  refunds
23    arising  on  account of the erroneous payment of tax, penalty
24    or  interest  hereunder.  In  the  administration   of,   and
25    compliance  with  this  paragraph, the Department and persons
26    who are subject to this paragraph shall have the same rights,
27    remedies, privileges, immunities, powers and duties,  and  be
28    subject  to  the  same conditions, restrictions, limitations,
29    penalties, exclusions, exemptions and  definitions  of  terms
30    and  employ the same modes of procedure, as are prescribed in
31    Sections 2 (except the definition of "retailer maintaining  a
32    place  of  business  in  this State"), 3 through 3-80 (except
33    provisions pertaining to the State rate of  tax,  and  except
34    provisions  concerning  collection or refunding of the tax by
 
                            -155-              LRB9110257SMdv
 1    retailers, and except that food for human consumption that is
 2    to be consumed off the premises where it is sold (other  than
 3    alcoholic  beverages,  soft  drinks,  and  food that has been
 4    prepared for  immediate  consumption)  and  prescription  and
 5    nonprescription  medicines,  drugs,  medical  appliances  and
 6    insulin,  urine testing materials, syringes, and needles used
 7    by diabetics, for human use, shall  not  be  subject  to  tax
 8    hereunder),  4,  11, 12, 12a, 14, 15, 19 (except the portions
 9    pertaining  to  claims  by  retailers  and  except  the  last
10    paragraph concerning refunds), 20, 21 and 22 of the  Use  Tax
11    Act  and  Section 3-7 of the Uniform Penalty and Interest Act
12    that are not inconsistent with this paragraph, as fully as if
13    those provisions were set forth herein.
14        If the board of commissioners has not imposed a tax under
15    this subsection on the use of motor fuel  or  gasohol  before
16    the effective date of this amendatory Act of the 91st General
17    Assembly,  then  the  board shall not impose such a tax on or
18    after that date.  If the board of commissioners has imposed a
19    tax under this subsection on the use of motor fuel or gasohol
20    before the effective date of this amendatory Act of the  91st
21    General  Assembly, then the board shall not increase the rate
22    of the tax on or after that date.
23        Whenever the Department determines that a  refund  should
24    be made under this paragraph to a claimant instead of issuing
25    a  credit  memorandum,  the Department shall notify the State
26    Comptroller, who shall cause the order to be  drawn  for  the
27    amount   specified,   and   to   the  person  named,  in  the
28    notification from the Department.  The refund shall  be  paid
29    by  the  State Treasurer out of a county water commission tax
30    fund established under paragraph (g) of this Section.
31        (e)  A certificate of registration issued  by  the  State
32    Department  of  Revenue  to  a  retailer under the Retailers'
33    Occupation Tax Act or under the Service  Occupation  Tax  Act
34    shall  permit  the registrant to engage in a business that is
 
                            -156-              LRB9110257SMdv
 1    taxed under the tax imposed under paragraphs (b), (c) or  (d)
 2    of  this  Section  and  no  additional  registration shall be
 3    required under the tax.  A certificate issued under  the  Use
 4    Tax  Act  or the Service Use Tax Act shall be applicable with
 5    regard to  any  tax  imposed  under  paragraph  (c)  of  this
 6    Section.
 7        (f)  Any  ordinance  imposing  or  discontinuing  any tax
 8    under this Section shall be  adopted  and  a  certified  copy
 9    thereof  filed  with  the  Department  on  or  before June 1,
10    whereupon  the  Department  of  Revenue  shall   proceed   to
11    administer  and  enforce this Section on behalf of the county
12    water  commission  as  of  September  1  next  following  the
13    adoption and filing.  Beginning January 1, 1992, an ordinance
14    or resolution imposing or  discontinuing  the  tax  hereunder
15    shall  be adopted and a certified copy thereof filed with the
16    Department on or before the first day of July, whereupon  the
17    Department  shall  proceed  to  administer  and  enforce this
18    Section as of the first day of October  next  following  such
19    adoption and filing.  Beginning January 1, 1993, an ordinance
20    or  resolution  imposing  or  discontinuing the tax hereunder
21    shall be adopted and a certified copy thereof filed with  the
22    Department  on  or before the first day of October, whereupon
23    the Department shall proceed to administer and  enforce  this
24    Section  as  of  the first day of January next following such
25    adoption and filing.
26        (g)  The  State  Department  of   Revenue   shall,   upon
27    collecting  any  taxes  as  provided in this Section, pay the
28    taxes  over  to  the  State  Treasurer  as  trustee  for  the
29    commission. The taxes shall be held in a trust  fund  outside
30    the  State  Treasury.  On  or  before  the  25th  day of each
31    calendar month, the State Department of Revenue shall prepare
32    and certify to the Comptroller of the State of  Illinois  the
33    amount  to be paid to the commission, which shall be the then
34    balance in the  fund,  less  any  amount  determined  by  the
 
                            -157-              LRB9110257SMdv
 1    Department to be necessary for the payment of refunds. Within
 2    10 days after receipt by the Comptroller of the certification
 3    of  the  amount to be paid to the commission, the Comptroller
 4    shall cause an order to be drawn  for  the  payment  for  the
 5    amount in accordance with the direction in the certification.
 6    (Source: P.A. 91-51, eff. 6-30-99.)

 7        Section  99.  Effective date.  This Act takes effect upon
 8    becoming law, except that Sections 5 through 20  take  effect
 9    October 1, 2000.
 
                            -158-              LRB9110257SMdv
 1                                INDEX
 2               Statutes amended in order of appearance
 3    35 ILCS 105/3-10          from Ch. 120, par. 439.3-10
 4    35 ILCS 105/9             from Ch. 120, par. 439.9
 5    35 ILCS 110/3-10          from Ch. 120, par. 439.33-10
 6    35 ILCS 110/9             from Ch. 120, par. 439.39
 7    35 ILCS 115/3-10          from Ch. 120, par. 439.103-10
 8    35 ILCS 115/9             from Ch. 120, par. 439.109
 9    35 ILCS 120/2-10          from Ch. 120, par. 441-10
10    35 ILCS 120/2d            from Ch. 120, par. 441d
11    35 ILCS 120/3             from Ch. 120, par. 442
12    55 ILCS 5/5-1006          from Ch. 34, par. 5-1006
13    55 ILCS 5/5-1006.5
14    55 ILCS 5/5-1007          from Ch. 34, par. 5-1007
15    55 ILCS 5/5-1035.1        from Ch. 34, par. 5-1035.1
16    65 ILCS 5/8-11-1          from Ch. 24, par. 8-11-1
17    65 ILCS 5/8-11-1.1        from Ch. 24, par. 8-11-1.1
18    65 ILCS 5/8-11-5          from Ch. 24, par. 8-11-5
19    65 ILCS 5/8-11-6          from Ch. 24, par. 8-11-6
20    65 ILCS 5/8-11-15         from Ch. 24, par. 8-11-15
21    70 ILCS 200/245-12
22    70 ILCS 3610/5.01         from Ch. 111 2/3, par. 355.01
23    70 ILCS 3615/4.03         from Ch. 111 2/3, par. 704.03
24    70 ILCS 3720/4            from Ch. 111 2/3, par. 254

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