State of Illinois
91st General Assembly
Legislation

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91_SB1310eng

 
SB1310 Engrossed                               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
 
SB1310 Engrossed            -2-                LRB9110257SMdv
 1    1.25%.  If, however, the aggregate tax  revenues  from  motor
 2    fuel  and  gasohol  under  the  Motor Fuel Tax Law during the
 3    period from October 1, 2002 through September  30,  2003  are
 4    not  at  least  15% more than the aggregate tax revenues from
 5    motor fuel and gasohol under that Law during the period  from
 6    October  1,  1999  through September 30, 2000, then beginning
 7    January 1, 2004 the tax is imposed on motor fuel and  gasohol
 8    at the 6.25% general rate.
 9        With  respect  to  gasohol,  the  tax imposed by this Act
10    applies to 70% of the proceeds of  sales  made  on  or  after
11    January  1, 1990, and before July 1, 2003, and to 100% of the
12    proceeds of sales made thereafter.
13        With respect to food for human consumption that is to  be
14    consumed  off  the  premises  where  it  is  sold (other than
15    alcoholic beverages, soft drinks,  and  food  that  has  been
16    prepared  for  immediate  consumption)  and  prescription and
17    nonprescription   medicines,   drugs,   medical   appliances,
18    modifications to a motor vehicle for the purpose of rendering
19    it usable by a disabled person, and  insulin,  urine  testing
20    materials, syringes, and needles used by diabetics, for human
21    use,  the  tax is imposed at the rate of 1%. For the purposes
22    of this Section, the term "soft drinks" means  any  complete,
23    finished,    ready-to-use,   non-alcoholic   drink,   whether
24    carbonated or not, including but not limited to  soda  water,
25    cola, fruit juice, vegetable juice, carbonated water, and all
26    other  preparations commonly known as soft drinks of whatever
27    kind or description that  are  contained  in  any  closed  or
28    sealed bottle, can, carton, or container, regardless of size.
29    "Soft  drinks"  does  not include coffee, tea, non-carbonated
30    water, infant formula, milk or milk products  as  defined  in
31    the Grade A Pasteurized Milk and Milk Products Act, or drinks
32    containing 50% or more natural fruit or vegetable juice.
33        Notwithstanding  any  other provisions of this Act, "food
34    for human consumption that is to be consumed off the premises
 
SB1310 Engrossed            -3-                LRB9110257SMdv
 1    where it is sold" includes all food sold  through  a  vending
 2    machine,  except  soft  drinks  and  food  products  that are
 3    dispensed hot from  a  vending  machine,  regardless  of  the
 4    location of the vending machine.
 5        If  the  property  that  is  purchased  at  retail from a
 6    retailer  is  acquired  outside  Illinois  and  used  outside
 7    Illinois before being brought to Illinois for use here and is
 8    taxable under this Act, the "selling price" on which the  tax
 9    is  computed  shall be reduced by an amount that represents a
10    reasonable allowance for depreciation for the period of prior
11    out-of-state use.
12    (Source: P.A. 90-605, eff.  6-30-98;  90-606,  eff.  6-30-98;
13    91-51, eff. 6-30-99.)

14        (35 ILCS 105/9) (from Ch. 120, par. 439.9)
15        Sec.   9.  Except   as  to  motor  vehicles,  watercraft,
16    aircraft, and trailers that are  required  to  be  registered
17    with  an  agency  of  this  State,  each retailer required or
18    authorized to collect the tax imposed by this Act  shall  pay
19    to the Department the amount of such tax (except as otherwise
20    provided)  at the time when he is required to file his return
21    for the period during which such tax was  collected,  less  a
22    discount  of  2.1% prior to January 1, 1990, and 1.75% on and
23    after January 1, 1990, or $5 per calendar year, whichever  is
24    greater,  which  is  allowed  to  reimburse  the retailer for
25    expenses incurred in collecting  the  tax,  keeping  records,
26    preparing and filing returns, remitting the tax and supplying
27    data  to the Department on request.  In the case of retailers
28    who report and pay the tax on a  transaction  by  transaction
29    basis,  as  provided  in this Section, such discount shall be
30    taken with each such tax  remittance  instead  of  when  such
31    retailer  files  his  periodic  return.   A retailer need not
32    remit that part of any tax collected by  him  to  the  extent
33    that  he  is required to remit and does remit the tax imposed
 
SB1310 Engrossed            -4-                LRB9110257SMdv
 1    by the Retailers' Occupation Tax Act,  with  respect  to  the
 2    sale of the same property.
 3        Where  such  tangible  personal  property is sold under a
 4    conditional sales contract, or under any other form  of  sale
 5    wherein  the payment of the principal sum, or a part thereof,
 6    is extended beyond the close of  the  period  for  which  the
 7    return  is filed, the retailer, in collecting the tax (except
 8    as to motor vehicles, watercraft, aircraft, and trailers that
 9    are required to be registered with an agency of this  State),
10    may  collect  for  each  tax  return  period,  only  the  tax
11    applicable  to  that  part  of  the  selling  price  actually
12    received during such tax return period.
13        Except  as  provided  in  this  Section, on or before the
14    twentieth day of each calendar  month,  such  retailer  shall
15    file  a return for the preceding calendar month.  Such return
16    shall be filed on forms  prescribed  by  the  Department  and
17    shall   furnish   such  information  as  the  Department  may
18    reasonably require.
19        The Department may require  returns  to  be  filed  on  a
20    quarterly  basis.  If so required, a return for each calendar
21    quarter shall be filed on or before the twentieth day of  the
22    calendar  month  following  the end of such calendar quarter.
23    The taxpayer shall also file a return with the Department for
24    each of the first two months of each calendar quarter, on  or
25    before  the  twentieth  day  of the following calendar month,
26    stating:
27             1.  The name of the seller;
28             2.  The address of the principal place  of  business
29        from which he engages in the business of selling tangible
30        personal property at retail in this State;
31             3.  The total amount of taxable receipts received by
32        him  during  the  preceding  calendar month from sales of
33        tangible personal property by him during  such  preceding
34        calendar  month,  including receipts from charge and time
 
SB1310 Engrossed            -5-                LRB9110257SMdv
 1        sales, but less all deductions allowed by law;
 2             4.  The amount of credit provided in Section  2d  of
 3        this Act;
 4             5.  The amount of tax due;
 5             5-5.  The signature of the taxpayer; and
 6             6.  Such   other   reasonable   information  as  the
 7        Department may require.
 8        If a taxpayer fails to sign a return within 30 days after
 9    the proper notice and demand for signature by the Department,
10    the return shall be considered valid and any amount shown  to
11    be due on the return shall be deemed assessed.
12        Beginning  October 1, 1993, a taxpayer who has an average
13    monthly tax liability of $150,000  or  more  shall  make  all
14    payments  required  by  rules of the Department by electronic
15    funds transfer. Beginning October 1, 1994, a taxpayer who has
16    an average monthly tax liability of $100,000  or  more  shall
17    make  all  payments  required  by  rules of the Department by
18    electronic funds  transfer.  Beginning  October  1,  1995,  a
19    taxpayer  who has an average monthly tax liability of $50,000
20    or more shall make all payments  required  by  rules  of  the
21    Department by electronic funds transfer. Beginning October 1,
22    2000,  a taxpayer who has an annual tax liability of $200,000
23    or more shall make all payments  required  by  rules  of  the
24    Department  by  electronic  funds transfer.  The term "annual
25    tax liability" shall be the sum of the taxpayer's liabilities
26    under  this  Act,  and  under  all  other  State  and   local
27    occupation  and  use tax laws administered by the Department,
28    for  the  immediately  preceding  calendar  year.  The   term
29    "average   monthly  tax  liability"  means  the  sum  of  the
30    taxpayer's liabilities under this Act, and  under  all  other
31    State  and  local occupation and use tax laws administered by
32    the Department, for the immediately preceding  calendar  year
33    divided by 12.
34        Before  August  1  of  each  year  beginning in 1993, the
 
SB1310 Engrossed            -6-                LRB9110257SMdv
 1    Department  shall  notify  all  taxpayers  required  to  make
 2    payments by electronic funds transfer. All taxpayers required
 3    to make payments by  electronic  funds  transfer  shall  make
 4    those payments for a minimum of one year beginning on October
 5    1.
 6        Any  taxpayer not required to make payments by electronic
 7    funds transfer may make payments by electronic funds transfer
 8    with the permission of the Department.
 9        All taxpayers required  to  make  payment  by  electronic
10    funds  transfer  and  any taxpayers authorized to voluntarily
11    make payments by electronic funds transfer shall  make  those
12    payments in the manner authorized by the Department.
13        The Department shall adopt such rules as are necessary to
14    effectuate  a  program  of  electronic funds transfer and the
15    requirements of this Section.
16        Before October 1, 2000, if the taxpayer's average monthly
17    tax  liability  to  the  Department  under  this   Act,   the
18    Retailers'  Occupation  Tax  Act,  the Service Occupation Tax
19    Act, the Service Use Tax Act was $10,000 or more  during  the
20    preceding  4  complete  calendar  quarters,  he  shall file a
21    return with the Department each month by the 20th day of  the
22    month   next  following  the  month  during  which  such  tax
23    liability  is  incurred  and  shall  make  payments  to   the
24    Department  on  or before the 7th, 15th, 22nd and last day of
25    the month during which such liability  is  incurred.  On  and
26    after  October 1, 2000, if the taxpayer's average monthly tax
27    liability to the Department under this  Act,  the  Retailers'
28    Occupation  Tax  Act, the Service Occupation Tax Act, and the
29    Service Use Tax Act was $20,000 or more during the  preceding
30    4 complete calendar quarters, he shall file a return with the
31    Department  each  month  by  the  20th  day of the month next
32    following the  month  during  which  such  tax  liability  is
33    incurred  and  shall  make  payment  to  the Department on or
34    before the 7th, 15th, 22nd and  last  day  of  or  the  month
 
SB1310 Engrossed            -7-                LRB9110257SMdv
 1    during  which such liability is incurred. If the month during
 2    which such tax liability is incurred began prior  to  January
 3    1,  1985,  each payment shall be in an amount equal to 1/4 of
 4    the taxpayer's actual liability for the month  or  an  amount
 5    set  by  the  Department  not  to  exceed  1/4 of the average
 6    monthly liability of the taxpayer to the Department  for  the
 7    preceding  4  complete calendar quarters (excluding the month
 8    of highest liability and the month  of  lowest  liability  in
 9    such  4  quarter period).  If the month during which such tax
10    liability is incurred begins on or after January 1, 1985, and
11    prior to January 1, 1987, each payment shall be in an  amount
12    equal  to  22.5%  of  the taxpayer's actual liability for the
13    month or 27.5% of  the  taxpayer's  liability  for  the  same
14    calendar  month  of  the preceding year.  If the month during
15    which such tax liability  is  incurred  begins  on  or  after
16    January  1,  1987, and prior to January 1, 1988, each payment
17    shall be in an amount equal to 22.5% of the taxpayer's actual
18    liability for the month or 26.25% of the taxpayer's liability
19    for the same calendar month of the preceding  year.   If  the
20    month  during  which such tax liability is incurred begins on
21    or after January 1, 1988, and prior to January  1,  1989,  or
22    begins  on or after January 1, 1996, each payment shall be in
23    an amount equal to 22.5% of the taxpayer's  actual  liability
24    for the month or 25% of the taxpayer's liability for the same
25    calendar  month  of  the preceding year.  If the month during
26    which such tax liability  is  incurred  begins  on  or  after
27    January  1,  1989, and prior to January 1, 1996, each payment
28    shall be in an amount equal to 22.5% of the taxpayer's actual
29    liability for the month or 25% of  the  taxpayer's  liability
30    for  the same calendar month of the preceding year or 100% of
31    the taxpayer's  actual  liability  for  the  quarter  monthly
32    reporting   period.   The  amount  of  such  quarter  monthly
33    payments shall be credited against the final tax liability of
34    the taxpayer's return for  that  month.   Before  October  1,
 
SB1310 Engrossed            -8-                LRB9110257SMdv
 1    2000,  once  applicable,  the  requirement  of  the making of
 2    quarter monthly payments to  the  Department  shall  continue
 3    until  such  taxpayer's  average  monthly  liability  to  the
 4    Department  during the preceding 4 complete calendar quarters
 5    (excluding the month of highest liability and  the  month  of
 6    lowest   liability)  is  less  than  $9,000,  or  until  such
 7    taxpayer's average monthly liability  to  the  Department  as
 8    computed  for  each  calendar  quarter  of  the  4  preceding
 9    complete  calendar  quarter  period  is  less  than  $10,000.
10    However,  if  a  taxpayer  can  show  the  Department  that a
11    substantial change in the taxpayer's  business  has  occurred
12    which  causes  the  taxpayer  to  anticipate that his average
13    monthly tax liability for the reasonably  foreseeable  future
14    will fall below the $10,000 threshold stated above, then such
15    taxpayer  may  petition  the  Department  for  change in such
16    taxpayer's reporting status. On and after  October  1,  2000,
17    once  applicable,  the  requirement  of the making of quarter
18    monthly payments to the Department shall continue until  such
19    taxpayer's average monthly liability to the Department during
20    the  preceding  4  complete  calendar quarters (excluding the
21    month of highest liability and the month of lowest liability)
22    is less than $19,000 or until such taxpayer's average monthly
23    liability to the Department as  computed  for  each  calendar
24    quarter  of  the 4 preceding complete calendar quarter period
25    is less than $20,000.  However, if a taxpayer  can  show  the
26    Department  that  a  substantial  change  in  the  taxpayer's
27    business has occurred which causes the taxpayer to anticipate
28    that  his  average  monthly  tax liability for the reasonably
29    foreseeable future will  fall  below  the  $20,000  threshold
30    stated  above, then such taxpayer may petition the Department
31    for a change  in  such  taxpayer's  reporting  status.    The
32    Department  shall  change  such  taxpayer's  reporting status
33    unless it finds that such change is seasonal  in  nature  and
34    not  likely  to  be  long  term.  If any such quarter monthly
 
SB1310 Engrossed            -9-                LRB9110257SMdv
 1    payment is not paid at the time or in the amount required  by
 2    this Section, then the taxpayer shall be liable for penalties
 3    and interest on the difference between the minimum amount due
 4    and  the  amount of such quarter monthly payment actually and
 5    timely paid, except insofar as the  taxpayer  has  previously
 6    made  payments  for that month to the Department in excess of
 7    the minimum payments  previously  due  as  provided  in  this
 8    Section.    The  Department  shall  make reasonable rules and
 9    regulations to govern the quarter monthly payment amount  and
10    quarter monthly payment dates for taxpayers who file on other
11    than a calendar monthly basis.
12        If  any such payment provided for in this Section exceeds
13    the taxpayer's liabilities under  this  Act,  the  Retailers'
14    Occupation  Tax  Act,  the Service Occupation Tax Act and the
15    Service Use Tax Act, as shown by an original monthly  return,
16    the   Department   shall  issue  to  the  taxpayer  a  credit
17    memorandum no later than 30 days after the date  of  payment,
18    which  memorandum  may  be  submitted  by the taxpayer to the
19    Department in payment of tax  liability  subsequently  to  be
20    remitted  by the taxpayer to the Department or be assigned by
21    the taxpayer to  a  similar  taxpayer  under  this  Act,  the
22    Retailers' Occupation Tax Act, the Service Occupation Tax Act
23    or  the  Service  Use  Tax Act, in accordance with reasonable
24    rules and regulations to be  prescribed  by  the  Department,
25    except  that  if  such excess payment is shown on an original
26    monthly return and is made after December 31, 1986, no credit
27    memorandum shall be issued, unless requested by the taxpayer.
28    If no such request is made,  the  taxpayer  may  credit  such
29    excess  payment  against  tax  liability  subsequently  to be
30    remitted by the taxpayer to the Department  under  this  Act,
31    the Retailers' Occupation Tax Act, the Service Occupation Tax
32    Act or the Service Use Tax Act, in accordance with reasonable
33    rules  and  regulations prescribed by the Department.  If the
34    Department subsequently determines that all or  any  part  of
 
SB1310 Engrossed            -10-               LRB9110257SMdv
 1    the  credit  taken  was not actually due to the taxpayer, the
 2    taxpayer's 2.1% or 1.75% vendor's discount shall  be  reduced
 3    by  2.1%  or 1.75% of the difference between the credit taken
 4    and that actually due, and the taxpayer shall be  liable  for
 5    penalties and interest on such difference.
 6        If  the  retailer is otherwise required to file a monthly
 7    return and if the retailer's average monthly tax liability to
 8    the Department does  not  exceed  $200,  the  Department  may
 9    authorize  his returns to be filed on a quarter annual basis,
10    with the return for January, February, and March of  a  given
11    year  being due by April 20 of such year; with the return for
12    April, May and June of a given year being due by July  20  of
13    such  year; with the return for July, August and September of
14    a given year being due by October 20 of such year,  and  with
15    the return for October, November and December of a given year
16    being due by January 20 of the following year.
17        If  the  retailer is otherwise required to file a monthly
18    or quarterly return and if the retailer's average monthly tax
19    liability  to  the  Department  does  not  exceed  $50,   the
20    Department may authorize his returns to be filed on an annual
21    basis,  with the return for a given year being due by January
22    20 of the following year.
23        Such quarter annual and annual returns, as  to  form  and
24    substance,  shall  be  subject  to  the  same requirements as
25    monthly returns.
26        Notwithstanding  any  other   provision   in   this   Act
27    concerning  the  time  within  which  a retailer may file his
28    return, in the case of any retailer who ceases to engage in a
29    kind of business  which  makes  him  responsible  for  filing
30    returns  under  this  Act,  such  retailer shall file a final
31    return under this Act with the Department not more  than  one
32    month after discontinuing such business.
33        In  addition, with respect to motor vehicles, watercraft,
34    aircraft, and trailers that are  required  to  be  registered
 
SB1310 Engrossed            -11-               LRB9110257SMdv
 1    with  an  agency  of  this State, every retailer selling this
 2    kind of tangible  personal  property  shall  file,  with  the
 3    Department,  upon a form to be prescribed and supplied by the
 4    Department, a separate return for each such item of  tangible
 5    personal  property  which  the  retailer  sells,  except that
 6    where, in the  same  transaction,  a  retailer  of  aircraft,
 7    watercraft,  motor  vehicles  or trailers transfers more than
 8    one aircraft, watercraft, motor vehicle or trailer to another
 9    aircraft, watercraft, motor vehicle or trailer  retailer  for
10    the  purpose of resale, that seller for resale may report the
11    transfer of all the aircraft, watercraft, motor  vehicles  or
12    trailers  involved  in  that transaction to the Department on
13    the same uniform invoice-transaction reporting  return  form.
14    For  purposes  of this Section, "watercraft" means a Class 2,
15    Class 3, or Class 4 watercraft as defined in Section  3-2  of
16    the  Boat Registration and Safety Act, a personal watercraft,
17    or any boat equipped with an inboard motor.
18        The transaction reporting return in  the  case  of  motor
19    vehicles  or trailers that are required to be registered with
20    an agency of this State, shall be the same  document  as  the
21    Uniform  Invoice referred to in Section 5-402 of the Illinois
22    Vehicle Code and must  show  the  name  and  address  of  the
23    seller;  the name and address of the purchaser; the amount of
24    the  selling  price  including  the  amount  allowed  by  the
25    retailer for traded-in property, if any; the  amount  allowed
26    by the retailer for the traded-in tangible personal property,
27    if  any,  to the extent to which Section 2 of this Act allows
28    an exemption for the value of traded-in property; the balance
29    payable after deducting  such  trade-in  allowance  from  the
30    total  selling price; the amount of tax due from the retailer
31    with respect to such transaction; the amount of tax collected
32    from the purchaser by the retailer on  such  transaction  (or
33    satisfactory  evidence  that  such  tax  is  not  due in that
34    particular instance, if that is claimed to be the fact);  the
 
SB1310 Engrossed            -12-               LRB9110257SMdv
 1    place  and  date  of the sale; a sufficient identification of
 2    the property sold; such other information as is  required  in
 3    Section  5-402  of  the Illinois Vehicle Code, and such other
 4    information as the Department may reasonably require.
 5        The  transaction  reporting  return  in   the   case   of
 6    watercraft and aircraft must show the name and address of the
 7    seller;  the name and address of the purchaser; the amount of
 8    the  selling  price  including  the  amount  allowed  by  the
 9    retailer for traded-in property, if any; the  amount  allowed
10    by the retailer for the traded-in tangible personal property,
11    if  any,  to the extent to which Section 2 of this Act allows
12    an exemption for the value of traded-in property; the balance
13    payable after deducting  such  trade-in  allowance  from  the
14    total  selling price; the amount of tax due from the retailer
15    with respect to such transaction; the amount of tax collected
16    from the purchaser by the retailer on  such  transaction  (or
17    satisfactory  evidence  that  such  tax  is  not  due in that
18    particular instance, if that is claimed to be the fact);  the
19    place  and  date  of the sale, a sufficient identification of
20    the  property  sold,  and  such  other  information  as   the
21    Department may reasonably require.
22        Such  transaction  reporting  return  shall  be filed not
23    later than 20 days after the date of  delivery  of  the  item
24    that  is  being sold, but may be filed by the retailer at any
25    time  sooner  than  that  if  he  chooses  to  do  so.    The
26    transaction  reporting  return and tax remittance or proof of
27    exemption from the tax that is imposed by  this  Act  may  be
28    transmitted to the Department by way of the State agency with
29    which,  or  State  officer  with  whom, the tangible personal
30    property  must  be  titled  or  registered  (if  titling   or
31    registration  is  required) if the Department and such agency
32    or State officer determine that this procedure will  expedite
33    the processing of applications for title or registration.
34        With each such transaction reporting return, the retailer
 
SB1310 Engrossed            -13-               LRB9110257SMdv
 1    shall  remit  the  proper  amount of tax due (or shall submit
 2    satisfactory evidence that the sale is not taxable if that is
 3    the case), to the Department or  its  agents,  whereupon  the
 4    Department  shall  issue,  in  the  purchaser's  name,  a tax
 5    receipt (or a certificate of exemption if the  Department  is
 6    satisfied  that the particular sale is tax exempt) which such
 7    purchaser may submit to  the  agency  with  which,  or  State
 8    officer  with  whom,  he  must title or register the tangible
 9    personal  property  that   is   involved   (if   titling   or
10    registration  is  required)  in  support  of such purchaser's
11    application for an Illinois certificate or other evidence  of
12    title or registration to such tangible personal property.
13        No  retailer's failure or refusal to remit tax under this
14    Act precludes a user, who has paid  the  proper  tax  to  the
15    retailer,  from  obtaining  his certificate of title or other
16    evidence of title or registration (if titling or registration
17    is required) upon satisfying the Department  that  such  user
18    has paid the proper tax (if tax is due) to the retailer.  The
19    Department  shall  adopt  appropriate  rules to carry out the
20    mandate of this paragraph.
21        If the user who would otherwise pay tax to  the  retailer
22    wants  the transaction reporting return filed and the payment
23    of tax or proof of exemption made to  the  Department  before
24    the  retailer  is willing to take these actions and such user
25    has not paid the tax to the retailer, such user  may  certify
26    to  the fact of such delay by the retailer, and may (upon the
27    Department   being   satisfied   of   the   truth   of   such
28    certification)  transmit  the  information  required  by  the
29    transaction reporting return and the remittance  for  tax  or
30    proof  of exemption directly to the Department and obtain his
31    tax receipt or exemption determination, in  which  event  the
32    transaction  reporting  return  and  tax remittance (if a tax
33    payment was required) shall be credited by the Department  to
34    the  proper  retailer's  account  with  the  Department,  but
 
SB1310 Engrossed            -14-               LRB9110257SMdv
 1    without  the  2.1%  or  1.75%  discount  provided for in this
 2    Section being allowed.  When the user pays the  tax  directly
 3    to  the  Department,  he shall pay the tax in the same amount
 4    and in the same form in which it would be remitted if the tax
 5    had been remitted to the Department by the retailer.
 6        Where a retailer collects the tax  with  respect  to  the
 7    selling  price  of  tangible personal property which he sells
 8    and the purchaser thereafter returns such  tangible  personal
 9    property  and  the retailer refunds the selling price thereof
10    to the purchaser, such retailer shall  also  refund,  to  the
11    purchaser,  the  tax  so  collected  from the purchaser. When
12    filing his return for the period in which he refunds such tax
13    to the purchaser, the retailer may deduct the amount  of  the
14    tax  so  refunded  by him to the purchaser from any other use
15    tax which such retailer may be required to pay  or  remit  to
16    the Department, as shown by such return, if the amount of the
17    tax  to be deducted was previously remitted to the Department
18    by  such  retailer.   If  the  retailer  has  not  previously
19    remitted the amount of such tax  to  the  Department,  he  is
20    entitled  to  no deduction under this Act upon refunding such
21    tax to the purchaser.
22        Any retailer filing a return  under  this  Section  shall
23    also  include  (for  the  purpose  of paying tax thereon) the
24    total tax covered by such return upon the  selling  price  of
25    tangible  personal property purchased by him at retail from a
26    retailer, but as to which the tax imposed by this Act was not
27    collected from the retailer  filing  such  return,  and  such
28    retailer shall remit the amount of such tax to the Department
29    when filing such return.
30        If  experience  indicates  such action to be practicable,
31    the Department may prescribe and  furnish  a  combination  or
32    joint return which will enable retailers, who are required to
33    file   returns   hereunder  and  also  under  the  Retailers'
34    Occupation Tax Act, to furnish  all  the  return  information
 
SB1310 Engrossed            -15-               LRB9110257SMdv
 1    required by both Acts on the one form.
 2        Where  the retailer has more than one business registered
 3    with the Department under separate  registration  under  this
 4    Act,  such retailer may not file each return that is due as a
 5    single return covering all such  registered  businesses,  but
 6    shall   file   separate  returns  for  each  such  registered
 7    business.
 8        Beginning January 1,  1990,  each  month  the  Department
 9    shall  pay  into the State and Local Sales Tax Reform Fund, a
10    special fund in the State Treasury which is  hereby  created,
11    the  net revenue realized for the preceding month from the 1%
12    tax on sales of food for human consumption  which  is  to  be
13    consumed  off  the  premises  where  it  is  sold (other than
14    alcoholic beverages, soft drinks  and  food  which  has  been
15    prepared  for  immediate  consumption)  and  prescription and
16    nonprescription  medicines,  drugs,  medical  appliances  and
17    insulin, urine testing materials, syringes and  needles  used
18    by diabetics.
19        Beginning  January  1,  1990,  each  month the Department
20    shall pay into the County and Mass Transit District  Fund  4%
21    of  the net revenue realized for the preceding month from the
22    6.25% general rate on the selling price of tangible  personal
23    property which is purchased outside Illinois at retail from a
24    retailer  and  which  is titled or registered by an agency of
25    this State's government.
26        Beginning January 1,  1990,  each  month  the  Department
27    shall  pay  into the State and Local Sales Tax Reform Fund, a
28    special fund in the State Treasury, 20% of  the  net  revenue
29    realized  for the preceding month from the 6.25% general rate
30    on the selling price of  tangible  personal  property,  other
31    than  tangible  personal  property which is purchased outside
32    Illinois at retail from a retailer and  which  is  titled  or
33    registered by an agency of this State's government.
34        Beginning  November  1,  2000,  and  so  long as the rate
 
SB1310 Engrossed            -16-               LRB9110257SMdv
 1    remains at 1.25%, each month the Department  shall  pay  into
 2    the  County  and  Mass  Transit  District Fund 20% of the net
 3    revenue realized for the preceding month from the 1.25%  rate
 4    on the selling price of motor fuel and gasohol.
 5        Beginning  January  1,  1990,  each  month the Department
 6    shall pay into the Local Government Tax Fund 16% of  the  net
 7    revenue  realized  for  the  preceding  month  from the 6.25%
 8    general rate  on  the  selling  price  of  tangible  personal
 9    property which is purchased outside Illinois at retail from a
10    retailer  and  which  is titled or registered by an agency of
11    this State's government.
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 Local Government Tax Fund 80% of the net revenue realized
15    for the preceding month from the 1.25% rate  on  the  selling
16    price of motor fuel and gasohol.
17        Of the remainder of the moneys received by the Department
18    pursuant  to  this  Act, (a) 1.75% thereof shall be paid into
19    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
20    and  on  and  after  July 1, 1989, 3.8% thereof shall be paid
21    into the Build Illinois Fund; provided, however, that  if  in
22    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
23    as  the case may be, of the moneys received by the Department
24    and required to be paid into the Build Illinois Fund pursuant
25    to Section 3 of the Retailers' Occupation Tax Act, Section  9
26    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
27    Section  9 of the Service Occupation Tax Act, such Acts being
28    hereinafter called the "Tax Acts" and such aggregate of  2.2%
29    or  3.8%,  as  the  case  may be, of moneys being hereinafter
30    called the "Tax Act Amount", and (2) the  amount  transferred
31    to the Build Illinois Fund from the State and Local Sales Tax
32    Reform  Fund  shall  be less than the Annual Specified Amount
33    (as defined in Section 3 of  the  Retailers'  Occupation  Tax
34    Act),  an amount equal to the difference shall be immediately
 
SB1310 Engrossed            -17-               LRB9110257SMdv
 1    paid into the Build Illinois Fund from other moneys  received
 2    by  the  Department  pursuant  to  the  Tax Acts; and further
 3    provided, that if on the last business day of any  month  the
 4    sum  of  (1) the Tax Act Amount required to be deposited into
 5    the Build Illinois Bond Account in the  Build  Illinois  Fund
 6    during  such month and (2) the amount transferred during such
 7    month to the Build Illinois Fund from  the  State  and  Local
 8    Sales  Tax  Reform Fund shall have been less than 1/12 of the
 9    Annual Specified Amount, an amount equal  to  the  difference
10    shall  be  immediately paid into the Build Illinois Fund from
11    other moneys received by the Department pursuant to  the  Tax
12    Acts;  and,  further  provided,  that  in  no event shall the
13    payments required  under  the  preceding  proviso  result  in
14    aggregate  payments  into the Build Illinois Fund pursuant to
15    this clause (b) for any fiscal year in excess of the  greater
16    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
17    for such fiscal year; and, further provided, that the amounts
18    payable  into  the  Build Illinois Fund under this clause (b)
19    shall be payable only until such time as the aggregate amount
20    on deposit under each trust indenture securing  Bonds  issued
21    and  outstanding  pursuant  to the Build Illinois Bond Act is
22    sufficient, taking into account any future investment income,
23    to fully provide, in accordance with such indenture, for  the
24    defeasance of or the payment of the principal of, premium, if
25    any,  and interest on the Bonds secured by such indenture and
26    on any Bonds expected to be issued thereafter  and  all  fees
27    and  costs  payable with respect thereto, all as certified by
28    the Director of the Bureau of the Budget.   If  on  the  last
29    business  day  of  any  month  in which Bonds are outstanding
30    pursuant to the Build Illinois Bond Act, the aggregate of the
31    moneys deposited in the Build Illinois Bond  Account  in  the
32    Build  Illinois  Fund  in  such  month shall be less than the
33    amount required to be transferred  in  such  month  from  the
34    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
 
SB1310 Engrossed            -18-               LRB9110257SMdv
 1    Retirement and Interest Fund pursuant to Section  13  of  the
 2    Build  Illinois  Bond Act, an amount equal to such deficiency
 3    shall be immediately paid from other moneys received  by  the
 4    Department  pursuant  to  the  Tax Acts to the Build Illinois
 5    Fund; provided, however, that any amounts paid to  the  Build
 6    Illinois  Fund  in  any fiscal year pursuant to this sentence
 7    shall be deemed to constitute payments pursuant to clause (b)
 8    of  the  preceding  sentence  and  shall  reduce  the  amount
 9    otherwise payable for such fiscal year pursuant to clause (b)
10    of the  preceding  sentence.   The  moneys  received  by  the
11    Department  pursuant to this Act and required to be deposited
12    into the Build Illinois Fund are subject to the pledge, claim
13    and charge set forth in Section 12 of the Build Illinois Bond
14    Act.
15        Subject to payment of amounts  into  the  Build  Illinois
16    Fund  as  provided  in  the  preceding  paragraph  or  in any
17    amendment thereto hereafter enacted, the following  specified
18    monthly   installment   of   the   amount  requested  in  the
19    certificate of the Chairman  of  the  Metropolitan  Pier  and
20    Exposition  Authority  provided  under  Section  8.25f of the
21    State Finance Act, but not in excess of the  sums  designated
22    as  "Total Deposit", shall be deposited in the aggregate from
23    collections under Section 9 of the Use Tax Act, Section 9  of
24    the  Service Use Tax Act, Section 9 of the Service Occupation
25    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
26    into  the  McCormick  Place  Expansion  Project  Fund  in the
27    specified fiscal years.
28             Fiscal Year                   Total Deposit
29                 1993                            $0
30                 1994                        53,000,000
31                 1995                        58,000,000
32                 1996                        61,000,000
33                 1997                        64,000,000
34                 1998                        68,000,000
 
SB1310 Engrossed            -19-               LRB9110257SMdv
 1                 1999                        71,000,000
 2                 2000                        75,000,000
 3                 2001                        80,000,000
 4                 2002                        84,000,000
 5                 2003                        89,000,000
 6                 2004                        93,000,000
 7                 2005                        97,000,000
 8                 2006                       102,000,000
 9                 2007                       108,000,000
10                 2008                       115,000,000
11                 2009                       120,000,000
12                 2010                       126,000,000
13                 2011                       132,000,000
14                 2012                       138,000,000
15                 2013 and                   145,000,000
16        each fiscal year
17        thereafter that bonds
18        are outstanding under
19        Section 13.2 of the
20        Metropolitan Pier and
21        Exposition Authority
22        Act, but not after fiscal year 2029.
23        Beginning July 20, 1993 and in each month of each  fiscal
24    year  thereafter,  one-eighth  of the amount requested in the
25    certificate of the Chairman  of  the  Metropolitan  Pier  and
26    Exposition  Authority  for  that fiscal year, less the amount
27    deposited into the McCormick Place Expansion Project Fund  by
28    the  State Treasurer in the respective month under subsection
29    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
30    Authority  Act,  plus cumulative deficiencies in the deposits
31    required under this Section for previous  months  and  years,
32    shall be deposited into the McCormick Place Expansion Project
33    Fund,  until  the  full amount requested for the fiscal year,
34    but not in excess of the amount  specified  above  as  "Total
 
SB1310 Engrossed            -20-               LRB9110257SMdv
 1    Deposit", has been deposited.
 2        Subject  to  payment  of  amounts into the Build Illinois
 3    Fund and the McCormick Place Expansion Project Fund  pursuant
 4    to  the  preceding  paragraphs  or  in  any amendment thereto
 5    hereafter enacted, each month the Department shall  pay  into
 6    the Local Government Distributive Fund .4% of the net revenue
 7    realized for the preceding month from the 5% general rate, or
 8    .4%  of  80%  of  the  net revenue realized for the preceding
 9    month from the 6.25% general rate, as the case may be, on the
10    selling price of  tangible  personal  property  which  amount
11    shall,  subject  to appropriation, be distributed as provided
12    in Section 2 of the State Revenue Sharing Act. No payments or
13    distributions pursuant to this paragraph shall be made if the
14    tax imposed  by  this  Act  on  photoprocessing  products  is
15    declared  unconstitutional,  or if the proceeds from such tax
16    are unavailable for distribution because of litigation.
17        Subject to payment of amounts  into  the  Build  Illinois
18    Fund,  the  McCormick  Place  Expansion Project Fund, and the
19    Local Government Distributive Fund pursuant to the  preceding
20    paragraphs  or  in  any amendments thereto hereafter enacted,
21    beginning July 1, 1993, the Department shall each  month  pay
22    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
23    revenue realized for  the  preceding  month  from  the  6.25%
24    general  rate  on  the  selling  price  of  tangible personal
25    property.
26        Of the remainder of the moneys received by the Department
27    pursuant to this Act, 75% thereof  shall  be  paid  into  the
28    State Treasury and 25% shall be reserved in a special account
29    and  used  only for the transfer to the Common School Fund as
30    part of the monthly transfer from the General Revenue Fund in
31    accordance with Section 8a of the State Finance Act.
32        As soon as possible after the first day  of  each  month,
33    upon   certification   of  the  Department  of  Revenue,  the
34    Comptroller shall order transferred and the  Treasurer  shall
 
SB1310 Engrossed            -21-               LRB9110257SMdv
 1    transfer  from the General Revenue Fund to the Motor Fuel Tax
 2    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
 3    realized  under  this  Act  for  the  second preceding month.
 4    Beginning April 1, 2000, this transfer is no longer  required
 5    and shall not be made.
 6        Net  revenue  realized  for  a month shall be the revenue
 7    collected by the State pursuant to this Act, less the  amount
 8    paid  out  during  that  month  as  refunds  to taxpayers for
 9    overpayment of liability.
10        For greater simplicity of administration,  manufacturers,
11    importers  and  wholesalers whose products are sold at retail
12    in Illinois by numerous retailers, and who wish to do so, may
13    assume the responsibility for accounting and  paying  to  the
14    Department  all  tax  accruing under this Act with respect to
15    such sales, if the retailers who are  affected  do  not  make
16    written objection to the Department to this arrangement.
17    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
18    91-37,   eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,  eff.
19    7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)

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

22        (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
23        Sec.  3-10.   Rate  of tax.  Unless otherwise provided in
24    this Section, the tax imposed by this Act is at the  rate  of
25    6.25%  of  the  selling  price  of tangible personal property
26    transferred as an incident to the sale of service,  but,  for
27    the  purpose  of  computing  this  tax, in no event shall the
28    selling price be less than the cost price of the property  to
29    the serviceman.
30        With  respect to motor fuel, as defined in Section 1.1 of
31    the Motor Fuel Tax Law, and gasohol, as  defined  in  Section
32    3-40  of  the  Use Tax Act, the tax is imposed at the rate of
 
SB1310 Engrossed            -22-               LRB9110257SMdv
 1    1.25%.  If, however, the aggregate tax  revenues  from  motor
 2    fuel  and  gasohol  under  the  Motor Fuel Tax Law during the
 3    period from October 1, 2002 through September  30,  2003  are
 4    not  at  least  15% more than the aggregate tax revenues from
 5    motor fuel and gasohol under that Law during the period  from
 6    October  1,  1999  through September 30, 2000, then beginning
 7    January 1, 2004 the tax is imposed on motor fuel and  gasohol
 8    at the 6.25% general rate.
 9        With  respect  to gasohol, as defined in the Use Tax Act,
10    the tax imposed by this Act applies to  70%  of  the  selling
11    price  of  property transferred as an incident to the sale of
12    service on or after January 1, 1990, and before July 1, 2003,
13    and to 100% of the selling price thereafter.
14        At the election of any  registered  serviceman  made  for
15    each  fiscal  year,  sales  of service in which the aggregate
16    annual cost price of tangible personal  property  transferred
17    as  an  incident to the sales of service is less than 35%, or
18    75% in the case of servicemen transferring prescription drugs
19    or servicemen engaged in  graphic  arts  production,  of  the
20    aggregate  annual  total  gross  receipts  from  all sales of
21    service, the tax imposed by this Act shall be  based  on  the
22    serviceman's  cost  price  of  the tangible personal property
23    transferred as an incident to the sale of those services.
24        The tax shall be imposed  at  the  rate  of  1%  on  food
25    prepared  for  immediate consumption and transferred incident
26    to a sale of service subject  to  this  Act  or  the  Service
27    Occupation  Tax  Act by an entity licensed under the Hospital
28    Licensing Act, the Nursing Home Care Act, or the  Child  Care
29    Act of 1969.  The tax shall also be imposed at the rate of 1%
30    on  food for human consumption that is to be consumed off the
31    premises where it is sold (other  than  alcoholic  beverages,
32    soft  drinks,  and  food that has been prepared for immediate
33    consumption and is not otherwise included in this  paragraph)
34    and   prescription   and  nonprescription  medicines,  drugs,
 
SB1310 Engrossed            -23-               LRB9110257SMdv
 1    medical appliances, modifications to a motor vehicle for  the
 2    purpose  of  rendering  it  usable  by a disabled person, and
 3    insulin, urine testing materials, syringes, and needles  used
 4    by  diabetics,  for  human  use.  For  the  purposes  of this
 5    Section, the term "soft drinks" means any complete, finished,
 6    ready-to-use, non-alcoholic drink, whether carbonated or not,
 7    including but not limited to soda water, cola,  fruit  juice,
 8    vegetable juice, carbonated water, and all other preparations
 9    commonly known as soft drinks of whatever kind or description
10    that  are  contained  in  any  closed  or sealed bottle, can,
11    carton, or container, regardless of size.  "Soft drinks" does
12    not  include  coffee,  tea,  non-carbonated   water,   infant
13    formula,  milk  or  milk  products  as defined in the Grade A
14    Pasteurized Milk and Milk Products Act, or drinks  containing
15    50% or more natural fruit or vegetable juice.
16        Notwithstanding  any  other provisions of this Act, "food
17    for human consumption that is to be consumed off the premises
18    where it is sold" includes all food sold  through  a  vending
19    machine,  except  soft  drinks  and  food  products  that are
20    dispensed hot from  a  vending  machine,  regardless  of  the
21    location of the vending machine.
22        If  the  property  that  is acquired from a serviceman is
23    acquired outside Illinois and used  outside  Illinois  before
24    being  brought  to Illinois for use here and is taxable under
25    this Act, the "selling price" on which the  tax  is  computed
26    shall  be  reduced  by an amount that represents a reasonable
27    allowance  for  depreciation  for   the   period   of   prior
28    out-of-state use.
29    (Source: P.A.  90-605,  eff.  6-30-98;  90-606, eff. 6-30-98;
30    91-51, eff. 6-30-99; 91-541, eff. 8-13-99.)

31        (35 ILCS 110/9) (from Ch. 120, par. 439.39)
32        Sec.  9.  Each  serviceman  required  or  authorized   to
33    collect  the  tax  herein imposed shall pay to the Department
 
SB1310 Engrossed            -24-               LRB9110257SMdv
 1    the amount of such tax (except as otherwise provided) at  the
 2    time  when  he  is required to file his return for the period
 3    during which such tax was collected, less a discount of  2.1%
 4    prior  to  January  1, 1990 and 1.75% on and after January 1,
 5    1990, or $5 per calendar year, whichever is greater, which is
 6    allowed to reimburse the serviceman for expenses incurred  in
 7    collecting  the  tax,  keeping  records, preparing and filing
 8    returns,  remitting  the  tax  and  supplying  data  to   the
 9    Department  on request. A serviceman need not remit that part
10    of any tax collected by him to the extent that he is required
11    to pay and does pay the tax imposed by the Service Occupation
12    Tax Act with respect to his sale  of  service  involving  the
13    incidental transfer by him of the same property.
14        Except  as  provided  hereinafter  in this Section, on or
15    before  the  twentieth  day  of  each  calendar  month,  such
16    serviceman shall file a return  for  the  preceding  calendar
17    month  in accordance with reasonable Rules and Regulations to
18    be promulgated by the Department. Such return shall be  filed
19    on a form prescribed by the Department and shall contain such
20    information as the Department may reasonably require.
21        The  Department  may  require  returns  to  be filed on a
22    quarterly basis.  If so required, a return for each  calendar
23    quarter  shall be filed on or before the twentieth day of the
24    calendar month following the end of  such  calendar  quarter.
25    The taxpayer shall also file a return with the Department for
26    each  of the first two months of each calendar quarter, on or
27    before the twentieth day of  the  following  calendar  month,
28    stating:
29             1.  The name of the seller;
30             2.  The  address  of the principal place of business
31        from which he engages in business as a serviceman in this
32        State;
33             3.  The total amount of taxable receipts received by
34        him  during  the  preceding  calendar  month,   including
 
SB1310 Engrossed            -25-               LRB9110257SMdv
 1        receipts  from  charge  and  time  sales,  but  less  all
 2        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
17    has an average monthly tax  liability  of  $100,000  or  more
18    shall  make  all payments required by rules of the Department
19    by 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.
 
SB1310 Engrossed            -26-               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        If the serviceman is otherwise required to file a monthly
18    return and if the serviceman's average monthly tax  liability
19    to  the  Department  does not exceed $200, the Department may
20    authorize his returns to be filed on a quarter annual  basis,
21    with  the  return  for January, February and March of a given
22    year being due by April 20 of such year; with the return  for
23    April,  May  and June of a given year being due by July 20 of
24    such year; with the return for July, August and September  of
25    a  given  year being due by October 20 of such year, and with
26    the return for October, November and December of a given year
27    being due by January 20 of the following year.
28        If the serviceman is otherwise required to file a monthly
29    or quarterly return and if the serviceman's  average  monthly
30    tax  liability  to  the  Department  does not exceed $50, the
31    Department may authorize his returns to be filed on an annual
32    basis, with the return for a given year being due by  January
33    20 of the following year.
34        Such  quarter  annual  and annual returns, as to form and
 
SB1310 Engrossed            -27-               LRB9110257SMdv
 1    substance, shall be  subject  to  the  same  requirements  as
 2    monthly returns.
 3        Notwithstanding   any   other   provision   in  this  Act
 4    concerning the time within which a serviceman  may  file  his
 5    return, in the case of any serviceman who ceases to engage in
 6    a  kind  of  business  which makes him responsible for filing
 7    returns under this Act, such serviceman shall  file  a  final
 8    return  under  this  Act  with the Department not more than 1
 9    month after discontinuing such business.
10        Where a serviceman collects the tax with respect  to  the
11    selling  price  of  property which he sells and the purchaser
12    thereafter returns such property and the  serviceman  refunds
13    the  selling  price thereof to the purchaser, such serviceman
14    shall also refund, to the purchaser,  the  tax  so  collected
15    from  the purchaser. When filing his return for the period in
16    which he refunds such tax to the  purchaser,  the  serviceman
17    may  deduct  the  amount of the tax so refunded by him to the
18    purchaser from any other Service Use Tax, Service  Occupation
19    Tax,   retailers'  occupation  tax  or  use  tax  which  such
20    serviceman may be required to pay or remit to the Department,
21    as shown by such return, provided that the amount of the  tax
22    to  be  deducted  shall  previously have been remitted to the
23    Department by such serviceman. If the  serviceman  shall  not
24    previously  have  remitted  the  amount  of  such  tax to the
25    Department, he shall be entitled to  no  deduction  hereunder
26    upon refunding such tax to the purchaser.
27        Any  serviceman  filing  a  return  hereunder  shall also
28    include the total tax upon  the  selling  price  of  tangible
29    personal  property purchased for use by him as an incident to
30    a sale of service, and such serviceman shall remit the amount
31    of such tax to the Department when filing such return.
32        If experience indicates such action  to  be  practicable,
33    the  Department  may  prescribe  and furnish a combination or
34    joint return which will enable servicemen, who  are  required
 
SB1310 Engrossed            -28-               LRB9110257SMdv
 1    to   file  returns  hereunder  and  also  under  the  Service
 2    Occupation Tax Act, to furnish  all  the  return  information
 3    required by both Acts on the one form.
 4        Where   the   serviceman   has  more  than  one  business
 5    registered with the Department  under  separate  registration
 6    hereunder, such serviceman shall not file each return that is
 7    due   as   a  single  return  covering  all  such  registered
 8    businesses, but shall file separate  returns  for  each  such
 9    registered business.
10        Beginning  January  1,  1990,  each  month the Department
11    shall pay into the State and Local Tax Reform Fund, a special
12    fund in the State Treasury, the net revenue realized for  the
13    preceding  month  from  the 1% tax on sales of food for human
14    consumption which is to be consumed off the premises where it
15    is sold (other than alcoholic beverages, soft drinks and food
16    which  has  been  prepared  for  immediate  consumption)  and
17    prescription and nonprescription  medicines,  drugs,  medical
18    appliances and insulin, urine testing materials, syringes and
19    needles used by diabetics.
20        Beginning  November  1,  2000,  and  so  long as the rate
21    remains at 1.25%, each month the Department  shall  pay  into
22    the  County  and  Mass  Transit  District Fund 20% of the net
23    revenue realized for the preceding month from the 1.25%  rate
24    on the selling price of motor fuel and gasohol.
25        Beginning  January  1,  1990,  each  month the Department
26    shall pay into the State and Local Sales Tax Reform Fund  20%
27    of  the net revenue realized for the preceding month from the
28    6.25%  general  rate  on  transfers  of   tangible   personal
29    property,  other  than  tangible  personal  property which is
30    purchased outside Illinois at  retail  from  a  retailer  and
31    which  is  titled  or registered by an agency of this State's
32    government.
33        Beginning November 1, 2000,  and  so  long  as  the  rate
34    remains  at  1.25%,  each month the Department shall pay into
 
SB1310 Engrossed            -29-               LRB9110257SMdv
 1    the Local Government Tax Fund 80% of the net revenue realized
 2    for the preceding month from the 1.25% rate  on  the  selling
 3    price of motor fuel and gasohol.
 4        Of the remainder of the moneys received by the Department
 5    pursuant  to  this Act, (a)  1.75% thereof shall be paid into
 6    the Build Illinois Fund and (b) prior to July 1,  1989,  2.2%
 7    and  on  and  after July 1, 1989, 3.8% thereof shall be  paid
 8    into the Build Illinois Fund; provided, however, that  if  in
 9    any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
10    as  the case may be, of the moneys received by the Department
11    and required to be paid into the Build Illinois Fund pursuant
12    to Section 3 of the Retailers' Occupation Tax Act, Section  9
13    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
14    Section  9 of the Service Occupation Tax Act, such Acts being
15    hereinafter called the "Tax Acts" and such aggregate of  2.2%
16    or  3.8%,  as  the  case  may be, of moneys being hereinafter
17    called the "Tax Act Amount", and (2) the  amount  transferred
18    to the Build Illinois Fund from the State and Local Sales Tax
19    Reform  Fund  shall be less than the Annual Specified  Amount
20    (as defined in Section 3 of  the  Retailers'  Occupation  Tax
21    Act),  an amount equal to the difference shall be immediately
22    paid into the Build Illinois Fund from other moneys  received
23    by  the  Department  pursuant  to  the  Tax Acts; and further
24    provided, that if on the last business day of any  month  the
25    sum  of  (1) the Tax Act Amount required to be deposited into
26    the Build Illinois Bond Account in the  Build  Illinois  Fund
27    during  such month and (2) the amount transferred during such
28    month to the Build Illinois Fund from  the  State  and  Local
29    Sales  Tax  Reform Fund shall have been less than 1/12 of the
30    Annual Specified Amount, an amount equal  to  the  difference
31    shall  be  immediately paid into the Build Illinois Fund from
32    other moneys received by the Department pursuant to  the  Tax
33    Acts;  and,  further  provided,  that  in  no event shall the
34    payments required  under  the  preceding  proviso  result  in
 
SB1310 Engrossed            -30-               LRB9110257SMdv
 1    aggregate  payments  into the Build Illinois Fund pursuant to
 2    this clause (b) for any fiscal year in excess of the  greater
 3    of (i) the Tax Act Amount or (ii) the Annual Specified Amount
 4    for such fiscal year; and, further provided, that the amounts
 5    payable  into  the  Build Illinois Fund under this clause (b)
 6    shall be payable only until such time as the aggregate amount
 7    on deposit under each trust indenture securing  Bonds  issued
 8    and  outstanding  pursuant  to the Build Illinois Bond Act is
 9    sufficient, taking into account any future investment income,
10    to fully provide, in accordance with such indenture, for  the
11    defeasance of or the payment of the principal of, premium, if
12    any,  and interest on the Bonds secured by such indenture and
13    on any Bonds expected to be issued thereafter  and  all  fees
14    and  costs  payable with respect thereto, all as certified by
15    the Director of the Bureau of the Budget.   If  on  the  last
16    business  day  of  any  month  in which Bonds are outstanding
17    pursuant to the Build Illinois Bond Act, the aggregate of the
18    moneys deposited in the Build Illinois Bond  Account  in  the
19    Build  Illinois  Fund  in  such  month shall be less than the
20    amount required to be transferred  in  such  month  from  the
21    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
22    Retirement and Interest Fund pursuant to Section  13  of  the
23    Build  Illinois  Bond Act, an amount equal to such deficiency
24    shall be immediately paid from other moneys received  by  the
25    Department  pursuant  to  the  Tax Acts to the Build Illinois
26    Fund; provided, however, that any amounts paid to  the  Build
27    Illinois  Fund  in  any fiscal year pursuant to this sentence
28    shall be deemed to constitute payments pursuant to clause (b)
29    of  the  preceding  sentence  and  shall  reduce  the  amount
30    otherwise payable for such fiscal year pursuant to clause (b)
31    of the  preceding  sentence.   The  moneys  received  by  the
32    Department  pursuant to this Act and required to be deposited
33    into the Build Illinois Fund are subject to the pledge, claim
34    and charge set forth in Section 12 of the Build Illinois Bond
 
SB1310 Engrossed            -31-               LRB9110257SMdv
 1    Act.
 2        Subject to payment of amounts  into  the  Build  Illinois
 3    Fund  as  provided  in  the  preceding  paragraph  or  in any
 4    amendment thereto hereafter enacted, the following  specified
 5    monthly   installment   of   the   amount  requested  in  the
 6    certificate of the Chairman  of  the  Metropolitan  Pier  and
 7    Exposition  Authority  provided  under  Section  8.25f of the
 8    State Finance Act, but not in excess of the  sums  designated
 9    as  "Total Deposit", shall be deposited in the aggregate from
10    collections under Section 9 of the Use Tax Act, Section 9  of
11    the  Service Use Tax Act, Section 9 of the Service Occupation
12    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
13    into  the  McCormick  Place  Expansion  Project  Fund  in the
14    specified fiscal years.
15          Fiscal Year                     Total Deposit
16             1993                                   $0
17             1994                           53,000,000
18             1995                           58,000,000
19             1996                           61,000,000
20             1997                           64,000,000
21             1998                           68,000,000
22             1999                           71,000,000
23             2000                           75,000,000
24             2001                           80,000,000
25             2002                           84,000,000
26             2003                           89,000,000
27             2004                           93,000,000
28             2005                           97,000,000
29             2006                           102,000,000
30             2007                           108,000,000
31             2008                           115,000,000
32             2009                           120,000,000
33             2010                           126,000,000
34             2011                           132,000,000
 
SB1310 Engrossed            -32-               LRB9110257SMdv
 1             2012                           138,000,000
 2             2013 and                       145,000,000
 3        each fiscal year
 4        thereafter that bonds
 5        are outstanding under
 6        Section 13.2 of the
 7        Metropolitan Pier and
 8        Exposition Authority Act,
 9        but not after fiscal year 2029.
10        Beginning July 20, 1993 and in each month of each  fiscal
11    year  thereafter,  one-eighth  of the amount requested in the
12    certificate of the Chairman  of  the  Metropolitan  Pier  and
13    Exposition  Authority  for  that fiscal year, less the amount
14    deposited into the McCormick Place Expansion Project Fund  by
15    the  State Treasurer in the respective month under subsection
16    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
17    Authority  Act,  plus cumulative deficiencies in the deposits
18    required under this Section for previous  months  and  years,
19    shall be deposited into the McCormick Place Expansion Project
20    Fund,  until  the  full amount requested for the fiscal year,
21    but not in excess of the amount  specified  above  as  "Total
22    Deposit", has been deposited.
23        Subject  to  payment  of  amounts into the Build Illinois
24    Fund and the McCormick Place Expansion Project Fund  pursuant
25    to  the  preceding  paragraphs  or  in  any amendment thereto
26    hereafter enacted, each month the Department shall  pay  into
27    the  Local  Government  Distributive  Fund  0.4%  of  the net
28    revenue realized for the preceding month from the 5%  general
29    rate  or  0.4%  of  80%  of  the net revenue realized for the
30    preceding month from the 6.25% general rate, as the case  may
31    be,  on the selling price of tangible personal property which
32    amount shall, subject to  appropriation,  be  distributed  as
33    provided  in  Section  2 of the State Revenue Sharing Act. No
34    payments or distributions pursuant to this paragraph shall be
 
SB1310 Engrossed            -33-               LRB9110257SMdv
 1    made if the tax imposed  by  this  Act  on  photo  processing
 2    products  is  declared  unconstitutional,  or if the proceeds
 3    from such tax are unavailable  for  distribution  because  of
 4    litigation.
 5        Subject  to  payment  of  amounts into the Build Illinois
 6    Fund, the McCormick Place Expansion  Project  Fund,  and  the
 7    Local  Government Distributive Fund pursuant to the preceding
 8    paragraphs or in any amendments  thereto  hereafter  enacted,
 9    beginning  July  1, 1993, the Department shall each month pay
10    into the Illinois Tax Increment Fund 0.27% of 80% of the  net
11    revenue  realized  for  the  preceding  month  from the 6.25%
12    general rate  on  the  selling  price  of  tangible  personal
13    property.
14        All  remaining moneys received by the Department pursuant
15    to this Act shall be paid into the General  Revenue  Fund  of
16    the State Treasury.
17        As  soon  as  possible after the first day of each month,
18    upon  certification  of  the  Department  of   Revenue,   the
19    Comptroller  shall  order transferred and the Treasurer shall
20    transfer from the General Revenue Fund to the Motor Fuel  Tax
21    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
22    realized under this  Act  for  the  second  preceding  month.
23    Beginning  April 1, 2000, this transfer is no longer required
24    and shall not be made.
25        Net revenue realized for a month  shall  be  the  revenue
26    collected  by the State pursuant to this Act, less the amount
27    paid out during  that  month  as  refunds  to  taxpayers  for
28    overpayment of liability.
29    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
30    eff.  6-30-99;  91-101,  eff.  7-12-99; 91-541, eff. 8-13-99;
31    revised 9-27-99.)

32        Section 15.  The Service Occupation Tax Act is amended by
33    changing Sections 3-10 and 9 as follows:
 
SB1310 Engrossed            -34-               LRB9110257SMdv
 1        (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
 2        Sec. 3-10. Rate of tax.   Unless  otherwise  provided  in
 3    this  Section,  the tax imposed by this Act is at the rate of
 4    6.25% of the "selling price", as defined in Section 2 of  the
 5    Service  Use Tax Act, of the tangible personal property.  For
 6    the purpose of computing this tax,  in  no  event  shall  the
 7    "selling price" be less than the cost price to the serviceman
 8    of  the  tangible personal property transferred.  The selling
 9    price of each item of tangible personal property  transferred
10    as  an  incident  of  a  sale  of  service  may be shown as a
11    distinct and separate item on the serviceman's billing to the
12    service customer. If the selling price is not so  shown,  the
13    selling  price of the tangible personal property is deemed to
14    be 50% of the serviceman's  entire  billing  to  the  service
15    customer.   When,  however, a serviceman contracts to design,
16    develop, and produce special order  machinery  or  equipment,
17    the   tax   imposed  by  this  Act  shall  be  based  on  the
18    serviceman's cost price of  the  tangible  personal  property
19    transferred incident to the completion of the contract.
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  Motor Fuel Tax Law during the
25    period from October 1, 2002 through September  30,  2003  are
26    not  at  least  15% more than the aggregate tax revenues from
27    motor fuel and gasohol under that Law during the period  from
28    October  1,  1999  through September 30, 2000, then beginning
29    January 1, 2004 the tax is imposed on motor fuel and  gasohol
30    at the 6.25% general rate.
31        With  respect  to gasohol, as defined in the Use Tax Act,
32    the tax imposed by this Act shall apply to 70%  of  the  cost
33    price  of  property transferred as an incident to the sale of
34    service on or after January 1, 1990, and before July 1, 2003,
 
SB1310 Engrossed            -35-               LRB9110257SMdv
 1    and to 100% of the cost price thereafter.
 2        At the election of any  registered  serviceman  made  for
 3    each  fiscal  year,  sales  of service in which the aggregate
 4    annual cost price of tangible personal  property  transferred
 5    as  an  incident to the sales of service is less than 35%, or
 6    75% in the case of servicemen transferring prescription drugs
 7    or servicemen engaged in  graphic  arts  production,  of  the
 8    aggregate  annual  total  gross  receipts  from  all sales of
 9    service, the tax imposed by this Act shall be  based  on  the
10    serviceman's  cost  price  of  the tangible personal property
11    transferred incident to the sale of those services.
12        The tax shall be imposed  at  the  rate  of  1%  on  food
13    prepared  for  immediate consumption and transferred incident
14    to a sale of service subject  to  this  Act  or  the  Service
15    Occupation  Tax  Act by an entity licensed under the Hospital
16    Licensing Act, the Nursing Home Care Act, or the  Child  Care
17    Act of 1969.  The tax shall also be imposed at the rate of 1%
18    on  food for human consumption that is to be consumed off the
19    premises where it is sold (other  than  alcoholic  beverages,
20    soft  drinks,  and  food that has been prepared for immediate
21    consumption and is not otherwise included in this  paragraph)
22    and   prescription   and  nonprescription  medicines,  drugs,
23    medical appliances, modifications to a motor vehicle for  the
24    purpose  of  rendering  it  usable  by a disabled person, and
25    insulin, urine testing materials, syringes, and needles  used
26    by  diabetics,  for  human  use.   For  the  purposes of this
27    Section, the term "soft drinks" means any complete, finished,
28    ready-to-use, non-alcoholic drink, whether carbonated or not,
29    including but not limited to soda water, cola,  fruit  juice,
30    vegetable juice, carbonated water, and all other preparations
31    commonly known as soft drinks of whatever kind or description
32    that  are  contained  in any closed or sealed can, carton, or
33    container,  regardless  of  size.   "Soft  drinks"  does  not
34    include coffee, tea, non-carbonated  water,  infant  formula,
 
SB1310 Engrossed            -36-               LRB9110257SMdv
 1    milk  or  milk products as defined in the Grade A Pasteurized
 2    Milk and Milk Products Act, or drinks containing 50% or  more
 3    natural fruit or vegetable juice.
 4        Notwithstanding  any  other provisions of this Act, "food
 5    for human consumption that is to be consumed off the premises
 6    where it is sold" includes all food sold  through  a  vending
 7    machine,  except  soft  drinks  and  food  products  that are
 8    dispensed hot from  a  vending  machine,  regardless  of  the
 9    location of the vending machine.
10    (Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
11    91-51, 6-30-99; 91-541, eff. 8-13-99.)

12        (35 ILCS 115/9) (from Ch. 120, par. 439.109)
13        Sec.  9.   Each  serviceman  required  or  authorized  to
14    collect the tax herein imposed shall pay  to  the  Department
15    the  amount  of  such  tax at the time when he is required to
16    file his return for the period  during  which  such  tax  was
17    collectible,  less  a  discount  of  2.1% prior to January 1,
18    1990, and 1.75% on and after  January  1,  1990,  or  $5  per
19    calendar  year,  whichever  is  greater,  which is allowed to
20    reimburse the serviceman for expenses incurred in  collecting
21    the  tax,  keeping  records,  preparing  and  filing returns,
22    remitting the tax and supplying data  to  the  Department  on
23    request.
24        Where  such  tangible  personal  property is sold under a
25    conditional sales contract, or under any other form  of  sale
26    wherein  the payment of the principal sum, or a part thereof,
27    is extended beyond the close of  the  period  for  which  the
28    return  is  filed,  the serviceman, in collecting the tax may
29    collect, for each tax return period, only the tax  applicable
30    to  the  part  of  the selling price actually received during
31    such tax return period.
32        Except as provided hereinafter in  this  Section,  on  or
33    before  the  twentieth  day  of  each  calendar  month,  such
 
SB1310 Engrossed            -37-               LRB9110257SMdv
 1    serviceman  shall  file  a  return for the preceding calendar
 2    month in accordance with reasonable rules and regulations  to
 3    be  promulgated  by  the  Department of Revenue.  Such return
 4    shall be filed on a form prescribed  by  the  Department  and
 5    shall   contain   such  information  as  the  Department  may
 6    reasonably require.
 7        The Department may require  returns  to  be  filed  on  a
 8    quarterly  basis.  If so required, a return for each calendar
 9    quarter shall be filed on or before the twentieth day of  the
10    calendar  month  following  the end of such calendar quarter.
11    The taxpayer shall also file a return with the Department for
12    each of the first two months of each calendar quarter, on  or
13    before  the  twentieth  day  of the following calendar month,
14    stating:
15             1.  The name of the seller;
16             2.  The address of the principal place  of  business
17        from which he engages in business as a serviceman in this
18        State;
19             3.  The total amount of taxable receipts received by
20        him   during  the  preceding  calendar  month,  including
21        receipts  from  charge  and  time  sales,  but  less  all
22        deductions allowed by law;
23             4.  The amount of credit provided in Section  2d  of
24        this Act;
25             5.  The amount of tax due;
26             5-5.  The signature of the taxpayer; and
27             6.  Such   other   reasonable   information  as  the
28        Department may require.
29        If a taxpayer fails to sign a return within 30 days after
30    the proper notice and demand for signature by the Department,
31    the return shall be considered valid and any amount shown  to
32    be due on the return shall be deemed assessed.
33        A  serviceman may accept a Manufacturer's Purchase Credit
34    certification from a purchaser in satisfaction of Service Use
 
SB1310 Engrossed            -38-               LRB9110257SMdv
 1    Tax as provided in Section 3-70 of the Service Use Tax Act if
 2    the  purchaser  provides  the  appropriate  documentation  as
 3    required by Section 3-70 of the  Service  Use  Tax  Act.    A
 4    Manufacturer's  Purchase  Credit certification, accepted by a
 5    serviceman as provided in Section 3-70 of the Service Use Tax
 6    Act, may be  used  by  that  serviceman  to  satisfy  Service
 7    Occupation  Tax  liability  in  the  amount  claimed  in  the
 8    certification, not to exceed 6.25% of the receipts subject to
 9    tax from a qualifying purchase.
10        If  the serviceman's average monthly tax liability to the
11    Department does not exceed $200, the Department may authorize
12    his returns to be filed on a quarter annual basis,  with  the
13    return  for January, February and March of a given year being
14    due by April 20 of such year; with the return for April,  May
15    and  June  of a given year being due by July 20 of such year;
16    with the return for July, August and  September  of  a  given
17    year  being  due  by  October  20  of such year, and with the
18    return for October, November and December  of  a  given  year
19    being due by January 20 of the following year.
20        If  the serviceman's average monthly tax liability to the
21    Department does not exceed $50, the Department may  authorize
22    his  returns  to be filed on an annual basis, with the return
23    for a given year being due by January  20  of  the  following
24    year.
25        Such  quarter  annual  and annual returns, as to form and
26    substance, shall be  subject  to  the  same  requirements  as
27    monthly returns.
28        Notwithstanding   any   other   provision   in  this  Act
29    concerning the time within which a serviceman  may  file  his
30    return, in the case of any serviceman who ceases to engage in
31    a  kind  of  business  which makes him responsible for filing
32    returns under this Act, such serviceman shall  file  a  final
33    return  under  this  Act  with the Department not more than 1
34    month after discontinuing such business.
 
SB1310 Engrossed            -39-               LRB9110257SMdv
 1        Beginning October 1, 1993, a taxpayer who has an  average
 2    monthly  tax  liability  of  $150,000  or more shall make all
 3    payments required by rules of the  Department  by  electronic
 4    funds  transfer.   Beginning  October 1, 1994, a taxpayer who
 5    has an average monthly tax  liability  of  $100,000  or  more
 6    shall  make  all payments required by rules of the Department
 7    by electronic funds transfer.  Beginning October 1,  1995,  a
 8    taxpayer  who has an average monthly tax liability of $50,000
 9    or more shall make all payments  required  by  rules  of  the
10    Department  by  electronic funds transfer.  Beginning October
11    1, 2000, a taxpayer  who  has  an  annual  tax  liability  of
12    $200,000 or more shall make all payments required by rules of
13    the  Department  by  electronic  funds  transfer.   The  term
14    "annual  tax  liability"  shall  be the sum of the taxpayer's
15    liabilities under this Act, and under  all  other  State  and
16    local  occupation  and  use  tax  laws  administered  by  the
17    Department,  for the immediately preceding calendar year. The
18    term "average monthly tax liability" means  the  sum  of  the
19    taxpayer's  liabilities  under  this Act, and under all other
20    State and local occupation and use tax laws  administered  by
21    the  Department,  for the immediately preceding calendar year
22    divided by 12.
23        Before August 1 of  each  year  beginning  in  1993,  the
24    Department  shall  notify  all  taxpayers  required  to  make
25    payments   by  electronic  funds  transfer.    All  taxpayers
26    required to make payments by electronic funds transfer  shall
27    make  those  payments  for a minimum of one year beginning on
28    October 1.
29        Any taxpayer not required to make payments by  electronic
30    funds transfer may make payments by electronic funds transfer
31    with the permission of the Department.
32        All  taxpayers  required  to  make  payment by electronic
33    funds transfer and any taxpayers  authorized  to  voluntarily
34    make  payments  by electronic funds transfer shall make those
 
SB1310 Engrossed            -40-               LRB9110257SMdv
 1    payments in the manner authorized by the Department.
 2        The Department shall adopt such rules as are necessary to
 3    effectuate a program of electronic  funds  transfer  and  the
 4    requirements of this Section.
 5        Where  a  serviceman collects the tax with respect to the
 6    selling price of tangible personal property  which  he  sells
 7    and  the  purchaser thereafter returns such tangible personal
 8    property and the serviceman refunds the selling price thereof
 9    to the purchaser, such serviceman shall also refund,  to  the
10    purchaser,  the  tax  so  collected from the purchaser.  When
11    filing his return for the period in which he refunds such tax
12    to the purchaser, the serviceman may deduct the amount of the
13    tax so refunded by  him  to  the  purchaser  from  any  other
14    Service   Occupation   Tax,   Service   Use  Tax,  Retailers'
15    Occupation Tax or  Use  Tax  which  such  serviceman  may  be
16    required  to pay or remit to the Department, as shown by such
17    return, provided that the amount of the tax  to  be  deducted
18    shall previously have been remitted to the Department by such
19    serviceman.   If  the  serviceman  shall  not previously have
20    remitted the amount of such tax to the Department,  he  shall
21    be entitled to no deduction hereunder upon refunding such tax
22    to the purchaser.
23        If  experience  indicates  such action to be practicable,
24    the Department may prescribe and  furnish  a  combination  or
25    joint  return  which will enable servicemen, who are required
26    to file returns  hereunder  and  also  under  the  Retailers'
27    Occupation  Tax  Act,  the Use Tax Act or the Service Use Tax
28    Act, to furnish all the return information  required  by  all
29    said Acts on the one form.
30        Where   the   serviceman   has  more  than  one  business
31    registered with the Department under  separate  registrations
32    hereunder,  such  serviceman  shall file separate returns for
33    each registered business.
34        Beginning January 1,  1990,  each  month  the  Department
 
SB1310 Engrossed            -41-               LRB9110257SMdv
 1    shall  pay  into  the  Local  Government Tax Fund the revenue
 2    realized for the preceding month from the 1% tax on sales  of
 3    food  for  human  consumption which is to be consumed off the
 4    premises where it is sold (other  than  alcoholic  beverages,
 5    soft  drinks  and  food which has been prepared for immediate
 6    consumption) and prescription and nonprescription  medicines,
 7    drugs,   medical   appliances   and  insulin,  urine  testing
 8    materials, syringes and needles used by diabetics.
 9        Beginning January 1,  1990,  each  month  the  Department
10    shall  pay  into the County and Mass Transit District Fund 4%
11    of the revenue realized for  the  preceding  month  from  the
12    6.25% general rate.
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  County  and  Mass  Transit  District Fund 20% of the net
16    revenue realized for the preceding month from the 1.25%  rate
17    on the selling price of motor fuel and gasohol.
18        Beginning  January  1,  1990,  each  month the Department
19    shall pay into the Local  Government  Tax  Fund  16%  of  the
20    revenue  realized  for  the  preceding  month  from the 6.25%
21    general rate on transfers of tangible personal 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
 
SB1310 Engrossed            -42-               LRB9110257SMdv
 1    to Section 3 of the Retailers' Occupation Tax Act, Section  9
 2    of the Use Tax Act, Section 9 of the Service Use Tax Act, and
 3    Section  9 of the Service Occupation Tax Act, such Acts being
 4    hereinafter called the "Tax Acts" and such aggregate of  2.2%
 5    or  3.8%,  as  the  case  may be, of moneys being hereinafter
 6    called the "Tax Act Amount", and (2) the  amount  transferred
 7    to the Build Illinois Fund from the State and Local Sales Tax
 8    Reform  Fund  shall  be less than the Annual Specified Amount
 9    (as defined in Section 3 of  the  Retailers'  Occupation  Tax
10    Act),  an amount equal to the difference shall be immediately
11    paid into the Build Illinois Fund from other moneys  received
12    by  the  Department  pursuant  to  the  Tax Acts; and further
13    provided, that if on the last business day of any  month  the
14    sum  of  (1) the Tax Act Amount required to be deposited into
15    the Build Illinois Account in the Build Illinois Fund  during
16    such  month  and (2) the amount transferred during such month
17    to the Build Illinois Fund from the State and Local Sales Tax
18    Reform Fund shall have been less  than  1/12  of  the  Annual
19    Specified  Amount, an amount equal to the difference shall be
20    immediately paid into the  Build  Illinois  Fund  from  other
21    moneys  received  by the Department pursuant to the Tax Acts;
22    and, further provided, that in no event  shall  the  payments
23    required  under  the  preceding  proviso  result in aggregate
24    payments into the Build Illinois Fund pursuant to this clause
25    (b) for any fiscal year in excess of the greater of  (i)  the
26    Tax  Act  Amount or (ii) the Annual Specified Amount for such
27    fiscal year; and, further provided, that the amounts  payable
28    into  the  Build Illinois Fund under this clause (b) shall be
29    payable only until such  time  as  the  aggregate  amount  on
30    deposit  under each trust indenture securing Bonds issued and
31    outstanding pursuant  to  the  Build  Illinois  Bond  Act  is
32    sufficient, taking into account any future investment income,
33    to  fully provide, in accordance with such indenture, for the
34    defeasance of or the payment of the principal of, premium, if
 
SB1310 Engrossed            -43-               LRB9110257SMdv
 1    any, and interest on the Bonds secured by such indenture  and
 2    on  any  Bonds  expected to be issued thereafter and all fees
 3    and costs payable with respect thereto, all as  certified  by
 4    the  Director  of  the  Bureau of the Budget.  If on the last
 5    business day of any month  in  which  Bonds  are  outstanding
 6    pursuant to the Build Illinois Bond Act, the aggregate of the
 7    moneys  deposited  in  the Build Illinois Bond Account in the
 8    Build Illinois Fund in such month  shall  be  less  than  the
 9    amount  required  to  be  transferred  in such month from the
10    Build Illinois  Bond  Account  to  the  Build  Illinois  Bond
11    Retirement  and  Interest  Fund pursuant to Section 13 of the
12    Build Illinois Bond Act, an amount equal to  such  deficiency
13    shall  be  immediately paid from other moneys received by the
14    Department pursuant to the Tax Acts  to  the  Build  Illinois
15    Fund;  provided,  however, that any amounts paid to the Build
16    Illinois Fund in any fiscal year pursuant  to  this  sentence
17    shall be deemed to constitute payments pursuant to clause (b)
18    of  the  preceding  sentence  and  shall  reduce  the  amount
19    otherwise payable for such fiscal year pursuant to clause (b)
20    of  the  preceding  sentence.   The  moneys  received  by the
21    Department pursuant to this Act and required to be  deposited
22    into the Build Illinois Fund are subject to the pledge, claim
23    and charge set forth in Section 12 of the Build Illinois Bond
24    Act.
25        Subject  to  payment  of  amounts into the Build Illinois
26    Fund as  provided  in  the  preceding  paragraph  or  in  any
27    amendment  thereto hereafter enacted, the following specified
28    monthly  installment  of  the   amount   requested   in   the
29    certificate  of  the  Chairman  of  the Metropolitan Pier and
30    Exposition Authority provided  under  Section  8.25f  of  the
31    State  Finance  Act, but not in excess of the sums designated
32    as "Total Deposit", shall be deposited in the aggregate  from
33    collections  under Section 9 of the Use Tax Act, Section 9 of
34    the Service Use Tax Act, Section 9 of the Service  Occupation
 
SB1310 Engrossed            -44-               LRB9110257SMdv
 1    Tax  Act,  and Section 3 of the Retailers' Occupation Tax Act
 2    into the  McCormick  Place  Expansion  Project  Fund  in  the
 3    specified fiscal years.
 4             Fiscal Year                   Total Deposit
 5                 1993                            $0
 6                 1994                        53,000,000
 7                 1995                        58,000,000
 8                 1996                        61,000,000
 9                 1997                        64,000,000
10                 1998                        68,000,000
11                 1999                        71,000,000
12                 2000                        75,000,000
13                 2001                        80,000,000
14                 2002                        84,000,000
15                 2003                        89,000,000
16                 2004                        93,000,000
17                 2005                        97,000,000
18                 2006                       102,000,000
19                 2007                       108,000,000
20                 2008                       115,000,000
21                 2009                       120,000,000
22                 2010                       126,000,000
23                 2011                       132,000,000
24                 2012                       138,000,000
25                 2013 and                   145,000,000
26        each fiscal year
27        thereafter that bonds
28        are outstanding under
29        Section 13.2 of the
30        Metropolitan Pier and
31        Exposition Authority
32        Act, but not after fiscal year 2029.
33        Beginning  July 20, 1993 and in each month of each fiscal
34    year thereafter, one-eighth of the amount  requested  in  the
 
SB1310 Engrossed            -45-               LRB9110257SMdv
 1    certificate  of  the  Chairman  of  the Metropolitan Pier and
 2    Exposition Authority for that fiscal year,  less  the  amount
 3    deposited  into the McCormick Place Expansion Project Fund by
 4    the State Treasurer in the respective month under  subsection
 5    (g)  of  Section  13  of the Metropolitan Pier and Exposition
 6    Authority Act, plus cumulative deficiencies in  the  deposits
 7    required  under  this  Section for previous months and years,
 8    shall be deposited into the McCormick Place Expansion Project
 9    Fund, until the full amount requested for  the  fiscal  year,
10    but  not  in  excess  of the amount specified above as "Total
11    Deposit", has been deposited.
12        Subject to payment of amounts  into  the  Build  Illinois
13    Fund  and the McCormick Place Expansion Project Fund pursuant
14    to the preceding  paragraphs  or  in  any  amendment  thereto
15    hereafter  enacted,  each month the Department shall pay into
16    the Local  Government  Distributive  Fund  0.4%  of  the  net
17    revenue  realized for the preceding month from the 5% general
18    rate or 0.4% of 80% of  the  net  revenue  realized  for  the
19    preceding  month from the 6.25% general rate, as the case may
20    be, on the selling price of tangible personal property  which
21    amount  shall,  subject  to  appropriation, be distributed as
22    provided in Section 2 of the State Revenue Sharing  Act.   No
23    payments or distributions pursuant to this paragraph shall be
24    made  if  the  tax  imposed  by  this  Act on photoprocessing
25    products is declared unconstitutional,  or  if  the  proceeds
26    from  such  tax  are  unavailable for distribution because of
27    litigation.
28        Subject to payment of amounts  into  the  Build  Illinois
29    Fund,  the  McCormick  Place  Expansion Project Fund, and the
30    Local Government Distributive Fund pursuant to the  preceding
31    paragraphs  or  in  any amendments thereto hereafter enacted,
32    beginning July 1, 1993, the Department shall each  month  pay
33    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
34    revenue realized for  the  preceding  month  from  the  6.25%
 
SB1310 Engrossed            -46-               LRB9110257SMdv
 1    general  rate  on  the  selling  price  of  tangible personal
 2    property.
 3        Remaining moneys received by the Department  pursuant  to
 4    this  Act  shall be paid into the General Revenue Fund of the
 5    State Treasury.
 6        The Department may, upon separate  written  notice  to  a
 7    taxpayer,  require  the taxpayer to prepare and file with the
 8    Department on a form prescribed by the Department within  not
 9    less  than  60  days  after  receipt  of the notice an annual
10    information return for the tax year specified in the  notice.
11    Such   annual  return  to  the  Department  shall  include  a
12    statement of gross receipts as shown by the  taxpayer's  last
13    Federal  income  tax  return.   If  the total receipts of the
14    business as reported in the Federal income tax return do  not
15    agree  with  the gross receipts reported to the Department of
16    Revenue for the same period, the taxpayer shall attach to his
17    annual return a schedule showing a reconciliation  of  the  2
18    amounts  and  the reasons for the difference.  The taxpayer's
19    annual return to the Department shall also disclose the  cost
20    of goods sold by the taxpayer during the year covered by such
21    return,  opening  and  closing  inventories of such goods for
22    such year, cost of goods used from stock or taken from  stock
23    and  given  away  by  the taxpayer during such year, pay roll
24    information of the taxpayer's business during such  year  and
25    any  additional  reasonable  information which the Department
26    deems would be helpful in determining  the  accuracy  of  the
27    monthly,  quarterly  or annual returns filed by such taxpayer
28    as hereinbefore provided for in this Section.
29        If the annual information return required by this Section
30    is not filed when and as  required,  the  taxpayer  shall  be
31    liable as follows:
32             (i)  Until  January  1,  1994, the taxpayer shall be
33        liable for a penalty equal to 1/6 of 1% of  the  tax  due
34        from such taxpayer under this Act during the period to be
 
SB1310 Engrossed            -47-               LRB9110257SMdv
 1        covered  by  the annual return for each month or fraction
 2        of a month until such return is filed  as  required,  the
 3        penalty  to  be assessed and collected in the same manner
 4        as any other penalty provided for in this Act.
 5             (ii)  On and after January  1,  1994,  the  taxpayer
 6        shall be liable for a penalty as described in Section 3-4
 7        of the Uniform Penalty and Interest Act.
 8        The chief executive officer, proprietor, owner or highest
 9    ranking  manager  shall sign the annual return to certify the
10    accuracy of the information contained  therein.   Any  person
11    who  willfully  signs  the  annual return containing false or
12    inaccurate  information  shall  be  guilty  of  perjury   and
13    punished  accordingly.   The annual return form prescribed by
14    the Department  shall  include  a  warning  that  the  person
15    signing the return may be liable for perjury.
16        The  foregoing  portion  of  this  Section concerning the
17    filing of an annual information return shall not apply  to  a
18    serviceman  who  is not required to file an income tax return
19    with the United States Government.
20        As soon as possible after the first day  of  each  month,
21    upon   certification   of  the  Department  of  Revenue,  the
22    Comptroller shall order transferred and the  Treasurer  shall
23    transfer  from the General Revenue Fund to the Motor Fuel Tax
24    Fund an amount equal to  1.7%  of  80%  of  the  net  revenue
25    realized  under  this  Act  for  the  second preceding month.
26    Beginning April 1, 2000, this transfer is no longer  required
27    and shall not be made.
28        Net  revenue  realized  for  a month shall be the revenue
29    collected by the State pursuant to this Act, less the  amount
30    paid  out  during  that  month  as  refunds  to taxpayers for
31    overpayment of liability.
32        For greater simplicity of  administration,  it  shall  be
33    permissible  for  manufacturers,  importers  and  wholesalers
34    whose  products  are sold by numerous servicemen in Illinois,
 
SB1310 Engrossed            -48-               LRB9110257SMdv
 1    and who wish to do  so,  to  assume  the  responsibility  for
 2    accounting  and  paying  to  the  Department all tax accruing
 3    under this Act with respect to such sales, if the  servicemen
 4    who  are  affected  do  not  make  written  objection  to the
 5    Department to this arrangement.
 6    (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
 7    eff. 6-30-99; 91-101, eff.  7-12-99;  91-541,  eff.  8-13-99;
 8    revised 9-28-99.)

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

11        (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
12        Sec.  2-10.  Rate  of  tax.  Unless otherwise provided in
13    this Section, the tax imposed by this Act is at the  rate  of
14    6.25%  of  gross  receipts  from  sales  of tangible personal
15    property made in the course of business.
16        With respect to motor fuel, as defined in Section 1.1  of
17    the  Motor  Fuel  Tax Law, and gasohol, as defined in Section
18    3-40 of the Use Tax Act, the tax is imposed at  the  rate  of
19    1.25%.    If,  however, the aggregate tax revenues from motor
20    fuel and gasohol under the Motor  Fuel  Tax  Law  during  the
21    period  from  October  1, 2002 through September 30, 2003 are
22    not at least 15% more than the aggregate  tax  revenues  from
23    motor  fuel and gasohol under that Law during the period from
24    October 1, 1999 through September 30,  2000,  then  beginning
25    January  1, 2004 the tax is imposed on motor fuel and gasohol
26    at the 6.25% general rate.
27        With respect to gasohol, as defined in the Use  Tax  Act,
28    the tax imposed by this Act applies to 70% of the proceeds of
29    sales  made  on  or after January 1, 1990, and before July 1,
30    2003, and to 100% of the proceeds of sales made thereafter.
31        With respect to food for human consumption that is to  be
32    consumed  off  the  premises  where  it  is  sold (other than
 
SB1310 Engrossed            -49-               LRB9110257SMdv
 1    alcoholic beverages, soft drinks,  and  food  that  has  been
 2    prepared  for  immediate  consumption)  and  prescription and
 3    nonprescription   medicines,   drugs,   medical   appliances,
 4    modifications to a motor vehicle for the purpose of rendering
 5    it usable by a disabled person, and  insulin,  urine  testing
 6    materials, syringes, and needles used by diabetics, for human
 7    use,  the  tax is imposed at the rate of 1%. For the purposes
 8    of this Section, the term "soft drinks" means  any  complete,
 9    finished,    ready-to-use,   non-alcoholic   drink,   whether
10    carbonated or not, including but not limited to  soda  water,
11    cola, fruit juice, vegetable juice, carbonated water, and all
12    other  preparations commonly known as soft drinks of whatever
13    kind or description that  are  contained  in  any  closed  or
14    sealed bottle, can, carton, or container, regardless of size.
15    "Soft  drinks"  does  not include coffee, tea, non-carbonated
16    water, infant formula, milk or milk products  as  defined  in
17    the Grade A Pasteurized Milk and Milk Products Act, or drinks
18    containing 50% or more natural fruit or vegetable juice.
19        Notwithstanding  any  other provisions of this Act, "food
20    for human consumption that is to be consumed off the premises
21    where it is sold" includes all food sold  through  a  vending
22    machine,  except  soft  drinks  and  food  products  that are
23    dispensed hot from  a  vending  machine,  regardless  of  the
24    location of the vending machine.
25    (Source:  P.A.  90-605,  eff.  6-30-98; 90-606, eff. 6-30-98;
26    91-51, eff. 6-30-99.)

27        (35 ILCS 120/2d) (from Ch. 120, par. 441d)
28        Sec. 2d.  Tax prepayment  by  motor  fuel  retailer.  Any
29    person  engaged  in  the  business  of  selling motor fuel at
30    retail, as defined in the Motor Fuel Tax Law, and who is  not
31    a  licensed  distributor or supplier, as defined in the Motor
32    Fuel Tax  Law,  shall  prepay  to  his  or  her  distributor,
33    supplier,  or  other  reseller of motor fuel a portion of the
 
SB1310 Engrossed            -50-               LRB9110257SMdv
 1    tax imposed by this Act  if  the  distributor,  supplier,  or
 2    other  reseller  of motor fuel is registered under Section 2a
 3    or Section  2c  of  this  Act.   The  prepayment  requirement
 4    provided for in this Section does not apply to liquid propane
 5    gas.
 6        The  Retailers'  Occupation  Tax paid to the distributor,
 7    supplier, or other reseller shall be an amount equal  to  0.8
 8    cents  $0.04  per gallon of the motor fuel, except gasohol as
 9    defined in Section 2-10 of this Act which shall be an  amount
10    equal  to  0.6  cents  $0.03  per  gallon, purchased from the
11    distributor, supplier, or other reseller. If, as a result  of
12    the  provisions  of  this  amendatory Act of the 91st General
13    Assembly, the rate of tax imposed on the sale of  motor  fuel
14    and  gasohol  by the Retailers' Occupation Tax Act returns to
15    6.25%,  then  the  Retailers'  Occupation  Tax  paid  to  the
16    distributor, supplier, or other reseller shall be  an  amount
17    equal  to  $0.04 per gallon of the motor fuel, except gasohol
18    as defined in Section 2-10 of this  Act  which  shall  be  an
19    amount   equal  to  $0.03  per  gallon,  purchased  from  the
20    distributor, supplier, or other reseller.
21        Any person engaged in the business of selling motor  fuel
22    at retail shall be entitled to a credit against tax due under
23    this  Act  in  an  amount  equal  to  the  tax  paid  to  the
24    distributor, supplier, or other reseller.
25        Every distributor, supplier, or other reseller registered
26    as  provided  in  Section  2a or Section 2c of this Act shall
27    remit the prepaid tax on all motor fuel that is due from  any
28    person  engaged  in  the  business of selling at retail motor
29    fuel with the returns filed under Section 2f or Section 3  of
30    this  Act,  but  the  vendors  discount provided in Section 3
31    shall not  apply  to  the  amount  of  prepaid  tax  that  is
32    remitted.  Any  distributor or supplier who fails to properly
33    collect and remit the tax shall be liable for the  tax.   For
34    purposes  of this Section, the prepaid tax is due on invoiced
 
SB1310 Engrossed            -51-               LRB9110257SMdv
 1    gallons sold during a month by the 20th day of the  following
 2    month.
 3    (Source: P.A. 86-1475; 87-14.)

 4        (35 ILCS 120/3) (from Ch. 120, par. 442)
 5        Sec. 3.  Except as provided in this Section, on or before
 6    the  twentieth  day  of  each  calendar  month,  every person
 7    engaged in the business of selling tangible personal property
 8    at retail in this State during the preceding  calendar  month
 9    shall file a return with the Department, stating:
10             1.  The name of the seller;
11             2.  His  residence  address  and  the address of his
12        principal place  of  business  and  the  address  of  the
13        principal  place  of  business  (if  that  is a different
14        address) from which he engages in the business of selling
15        tangible personal property at retail in this State;
16             3.  Total amount of receipts received by him  during
17        the  preceding calendar month or quarter, as the case may
18        be, from sales of tangible personal  property,  and  from
19        services furnished, by him during such preceding calendar
20        month or quarter;
21             4.  Total   amount   received   by  him  during  the
22        preceding calendar month or quarter on  charge  and  time
23        sales  of  tangible  personal property, and from services
24        furnished, by him prior to the month or quarter for which
25        the return is filed;
26             5.  Deductions allowed by law;
27             6.  Gross receipts which were received by him during
28        the preceding calendar month  or  quarter  and  upon  the
29        basis of which the tax is imposed;
30             7.  The  amount  of credit provided in Section 2d of
31        this Act;
32             8.  The amount of tax due;
33             9.  The signature of the taxpayer; and
 
SB1310 Engrossed            -52-               LRB9110257SMdv
 1             10.  Such  other  reasonable  information   as   the
 2        Department may require.
 3        If a taxpayer fails to sign a return within 30 days after
 4    the proper notice and demand for signature by the Department,
 5    the  return shall be considered valid and any amount shown to
 6    be due on the return shall be deemed assessed.
 7        Each return shall be  accompanied  by  the  statement  of
 8    prepaid tax issued pursuant to Section 2e for which credit is
 9    claimed.
10        A  retailer  may  accept a Manufacturer's Purchase Credit
11    certification from a purchaser in satisfaction of Use Tax  as
12    provided  in Section 3-85 of the Use Tax Act if the purchaser
13    provides the appropriate documentation as required by Section
14    3-85 of the Use Tax Act.  A  Manufacturer's  Purchase  Credit
15    certification,  accepted by a retailer as provided in Section
16    3-85 of the Use Tax Act, may be  used  by  that  retailer  to
17    satisfy  Retailers'  Occupation  Tax  liability in the amount
18    claimed in the certification, not  to  exceed  6.25%  of  the
19    receipts subject to tax from a qualifying purchase.
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
 
SB1310 Engrossed            -53-               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; and
 6             6.  Such  other  reasonable   information   as   the
 7        Department may require.
 8        If  a total amount of less than $1 is payable, refundable
 9    or creditable, such amount shall be disregarded if it is less
10    than 50 cents and shall be increased to $1 if it is 50  cents
11    or more.
12        Beginning  October 1, 1993, a taxpayer who has an average
13    monthly tax liability of $150,000  or  more  shall  make  all
14    payments  required  by  rules of the Department by electronic
15    funds transfer.  Beginning October 1, 1994,  a  taxpayer  who
16    has  an  average  monthly  tax  liability of $100,000 or more
17    shall make all payments required by rules of  the  Department
18    by  electronic  funds transfer.  Beginning October 1, 1995, a
19    taxpayer who has an average monthly tax liability of  $50,000
20    or  more  shall  make  all  payments required by rules of the
21    Department by electronic funds transfer.   Beginning  October
22    1,  2000,  a  taxpayer  who  has  an  annual tax liability of
23    $200,000 or more shall make all payments required by rules of
24    the  Department  by  electronic  funds  transfer.   The  term
25    "annual tax liability" shall be the  sum  of  the  taxpayer's
26    liabilities  under  this  Act,  and under all other State and
27    local  occupation  and  use  tax  laws  administered  by  the
28    Department, for the immediately preceding calendar year.  The
29    term  "average monthly tax liability" shall be the sum of the
30    taxpayer's liabilities under this Act, and  under  all  other
31    State  and  local occupation and use tax laws administered by
32    the Department, for the immediately preceding  calendar  year
33    divided by 12.
34        Before  August  1  of  each  year  beginning in 1993, the
 
SB1310 Engrossed            -54-               LRB9110257SMdv
 1    Department  shall  notify  all  taxpayers  required  to  make
 2    payments  by  electronic  funds  transfer.    All   taxpayers
 3    required  to make payments by electronic funds transfer shall
 4    make those payments for a minimum of one  year  beginning  on
 5    October 1.
 6        Any  taxpayer not required to make payments by electronic
 7    funds transfer may make payments by electronic funds transfer
 8    with the permission of the Department.
 9        All taxpayers required  to  make  payment  by  electronic
10    funds  transfer  and  any taxpayers authorized to voluntarily
11    make payments by electronic funds transfer shall  make  those
12    payments in the manner authorized by the Department.
13        The Department shall adopt such rules as are necessary to
14    effectuate  a  program  of  electronic funds transfer and the
15    requirements of this Section.
16        Any amount which is required to be shown or  reported  on
17    any  return  or  other document under this Act shall, if such
18    amount is not a whole-dollar  amount,  be  increased  to  the
19    nearest  whole-dollar amount in any case where the fractional
20    part of a dollar is 50 cents or more, and  decreased  to  the
21    nearest  whole-dollar  amount  where the fractional part of a
22    dollar is less than 50 cents.
23        If the retailer is otherwise required to file  a  monthly
24    return and if the retailer's average monthly tax liability to
25    the  Department  does  not  exceed  $200,  the Department may
26    authorize his returns to be filed on a quarter annual  basis,
27    with  the  return  for January, February and March of a given
28    year being due by April 20 of such year; with the return  for
29    April,  May  and June of a given year being due by July 20 of
30    such year; with the return for July, August and September  of
31    a  given  year being due by October 20 of such year, and with
32    the return for October, November and December of a given year
33    being due by January 20 of the following year.
34        If the retailer is otherwise required to file  a  monthly
 
SB1310 Engrossed            -55-               LRB9110257SMdv
 1    or quarterly return and if the retailer's average monthly tax
 2    liability  with  the  Department  does  not  exceed  $50, the
 3    Department may authorize his returns to be filed on an annual
 4    basis, with the return for a given year being due by  January
 5    20 of the following year.
 6        Such  quarter  annual  and annual returns, as to form and
 7    substance, shall be  subject  to  the  same  requirements  as
 8    monthly returns.
 9        Notwithstanding   any   other   provision   in  this  Act
10    concerning the time within which  a  retailer  may  file  his
11    return, in the case of any retailer who ceases to engage in a
12    kind  of  business  which  makes  him  responsible for filing
13    returns under this Act, such  retailer  shall  file  a  final
14    return  under  this Act with the Department not more than one
15    month after discontinuing such business.
16        Where  the  same  person  has  more  than  one   business
17    registered  with  the Department under separate registrations
18    under this Act, such person may not file each return that  is
19    due   as   a  single  return  covering  all  such  registered
20    businesses, but shall file separate  returns  for  each  such
21    registered business.
22        In  addition, with respect to motor vehicles, watercraft,
23    aircraft, and trailers that are  required  to  be  registered
24    with  an  agency  of  this State, every retailer selling this
25    kind of tangible  personal  property  shall  file,  with  the
26    Department,  upon a form to be prescribed and supplied by the
27    Department, a separate return for each such item of  tangible
28    personal  property  which  the  retailer  sells,  except that
29    where, in the  same  transaction,  a  retailer  of  aircraft,
30    watercraft,  motor  vehicles  or trailers transfers more than
31    one aircraft, watercraft, motor vehicle or trailer to another
32    aircraft,  watercraft,  motor  vehicle  retailer  or  trailer
33    retailer for the purpose of resale, that  seller  for  resale
34    may  report  the  transfer of all aircraft, watercraft, motor
 
SB1310 Engrossed            -56-               LRB9110257SMdv
 1    vehicles or trailers involved  in  that  transaction  to  the
 2    Department  on the same uniform invoice-transaction reporting
 3    return form.  For  purposes  of  this  Section,  "watercraft"
 4    means a Class 2, Class 3, or Class 4 watercraft as defined in
 5    Section  3-2  of  the  Boat  Registration  and  Safety Act, a
 6    personal watercraft, or any boat  equipped  with  an  inboard
 7    motor.
 8        Any  retailer  who sells only motor vehicles, watercraft,
 9    aircraft, or trailers that are required to be registered with
10    an agency of this State, so that  all  retailers'  occupation
11    tax liability is required to be reported, and is reported, on
12    such  transaction  reporting returns and who is not otherwise
13    required to file monthly or quarterly returns, need not  file
14    monthly or quarterly returns.  However, those retailers shall
15    be required to file returns on an annual basis.
16        The  transaction  reporting  return, in the case of motor
17    vehicles or trailers that are required to be registered  with
18    an  agency  of  this State, shall be the same document as the
19    Uniform Invoice referred to in Section 5-402 of The  Illinois
20    Vehicle  Code  and  must  show  the  name  and address of the
21    seller; the name and address of the purchaser; the amount  of
22    the  selling  price  including  the  amount  allowed  by  the
23    retailer  for  traded-in property, if any; the amount allowed
24    by the retailer for the traded-in tangible personal property,
25    if any, to the extent to which Section 1 of this  Act  allows
26    an exemption for the value of traded-in property; the balance
27    payable  after  deducting  such  trade-in  allowance from the
28    total selling price; the amount of tax due from the  retailer
29    with respect to such transaction; the amount of tax collected
30    from  the  purchaser  by the retailer on such transaction (or
31    satisfactory evidence that  such  tax  is  not  due  in  that
32    particular  instance, if that is claimed to be the fact); the
33    place and date of the sale; a  sufficient  identification  of
34    the  property  sold; such other information as is required in
 
SB1310 Engrossed            -57-               LRB9110257SMdv
 1    Section 5-402 of The Illinois Vehicle Code,  and  such  other
 2    information as the Department may reasonably require.
 3        The   transaction   reporting   return  in  the  case  of
 4    watercraft or aircraft must show the name and address of  the
 5    seller;  the name and address of the purchaser; the amount of
 6    the  selling  price  including  the  amount  allowed  by  the
 7    retailer for traded-in property, if any; the  amount  allowed
 8    by the retailer for the traded-in tangible personal property,
 9    if  any,  to the extent to which Section 1 of this Act allows
10    an exemption for the value of traded-in property; the balance
11    payable after deducting  such  trade-in  allowance  from  the
12    total  selling price; the amount of tax due from the retailer
13    with respect to such transaction; the amount of tax collected
14    from the purchaser by the retailer on  such  transaction  (or
15    satisfactory  evidence  that  such  tax  is  not  due in that
16    particular instance, if that is claimed to be the fact);  the
17    place  and  date  of the sale, a sufficient identification of
18    the  property  sold,  and  such  other  information  as   the
19    Department may reasonably require.
20        Such  transaction  reporting  return  shall  be filed not
21    later than 20 days after the day of delivery of the item that
22    is being sold, but may be filed by the retailer at  any  time
23    sooner  than  that  if  he chooses to do so.  The transaction
24    reporting return and tax remittance  or  proof  of  exemption
25    from   the  Illinois  use  tax  may  be  transmitted  to  the
26    Department by way of the State agency with  which,  or  State
27    officer  with  whom  the  tangible  personal property must be
28    titled or registered (if titling or registration is required)
29    if the Department and such agency or State officer  determine
30    that   this   procedure   will  expedite  the  processing  of
31    applications for title or registration.
32        With each such transaction reporting return, the retailer
33    shall remit the proper amount of tax  due  (or  shall  submit
34    satisfactory evidence that the sale is not taxable if that is
 
SB1310 Engrossed            -58-               LRB9110257SMdv
 1    the  case),  to  the  Department or its agents, whereupon the
 2    Department shall issue, in the purchaser's name,  a  use  tax
 3    receipt  (or  a certificate of exemption if the Department is
 4    satisfied that the particular sale is tax exempt) which  such
 5    purchaser  may  submit  to  the  agency  with which, or State
 6    officer with whom, he must title  or  register  the  tangible
 7    personal   property   that   is   involved   (if  titling  or
 8    registration is required)  in  support  of  such  purchaser's
 9    application  for an Illinois certificate or other evidence of
10    title or registration to such tangible personal property.
11        No retailer's failure or refusal to remit tax under  this
12    Act  precludes  a  user,  who  has paid the proper tax to the
13    retailer, from obtaining his certificate of  title  or  other
14    evidence of title or registration (if titling or registration
15    is  required)  upon  satisfying the Department that such user
16    has paid the proper tax (if tax is due) to the retailer.  The
17    Department shall adopt appropriate rules  to  carry  out  the
18    mandate of this paragraph.
19        If  the  user who would otherwise pay tax to the retailer
20    wants the transaction reporting return filed and the  payment
21    of  the  tax  or  proof  of  exemption made to the Department
22    before the retailer is willing to take these actions and such
23    user has not paid the tax to  the  retailer,  such  user  may
24    certify  to  the  fact  of such delay by the retailer and may
25    (upon the Department being satisfied of  the  truth  of  such
26    certification)  transmit  the  information  required  by  the
27    transaction  reporting  return  and the remittance for tax or
28    proof of exemption directly to the Department and obtain  his
29    tax  receipt  or  exemption determination, in which event the
30    transaction reporting return and tax  remittance  (if  a  tax
31    payment  was required) shall be credited by the Department to
32    the  proper  retailer's  account  with  the  Department,  but
33    without the 2.1% or  1.75%  discount  provided  for  in  this
34    Section  being  allowed.  When the user pays the tax directly
 
SB1310 Engrossed            -59-               LRB9110257SMdv
 1    to the Department, he shall pay the tax in  the  same  amount
 2    and in the same form in which it would be remitted if the tax
 3    had been remitted to the Department by the retailer.
 4        Refunds  made  by  the seller during the preceding return
 5    period  to  purchasers,  on  account  of  tangible   personal
 6    property  returned  to  the  seller,  shall  be  allowed as a
 7    deduction under subdivision 5 of  his  monthly  or  quarterly
 8    return,   as  the  case  may  be,  in  case  the  seller  had
 9    theretofore included the  receipts  from  the  sale  of  such
10    tangible  personal  property in a return filed by him and had
11    paid the tax  imposed  by  this  Act  with  respect  to  such
12    receipts.
13        Where  the  seller  is a corporation, the return filed on
14    behalf of such corporation shall be signed by the  president,
15    vice-president,  secretary  or  treasurer  or by the properly
16    accredited agent of such corporation.
17        Where the seller is  a  limited  liability  company,  the
18    return filed on behalf of the limited liability company shall
19    be  signed by a manager, member, or properly accredited agent
20    of the limited liability company.
21        Except as provided in this Section, the  retailer  filing
22    the  return  under  this Section shall, at the time of filing
23    such return, pay to the Department the amount of tax  imposed
24    by  this Act less a discount of 2.1% prior to January 1, 1990
25    and 1.75% on and after January 1, 1990, or  $5  per  calendar
26    year, whichever is greater, which is allowed to reimburse the
27    retailer  for  the  expenses  incurred  in  keeping  records,
28    preparing and filing returns, remitting the tax and supplying
29    data  to  the  Department  on  request.   Any prepayment made
30    pursuant to Section 2d of this Act shall be included  in  the
31    amount  on which such 2.1% or 1.75% discount is computed.  In
32    the case of retailers  who  report  and  pay  the  tax  on  a
33    transaction   by  transaction  basis,  as  provided  in  this
34    Section, such discount shall be  taken  with  each  such  tax
 
SB1310 Engrossed            -60-               LRB9110257SMdv
 1    remittance  instead  of when such retailer files his periodic
 2    return.
 3        Before October 1, 2000, if the taxpayer's average monthly
 4    tax liability to the Department under this Act, the  Use  Tax
 5    Act,  the Service Occupation Tax Act, and the Service Use Tax
 6    Act, excluding any liability for  prepaid  sales  tax  to  be
 7    remitted  in  accordance  with  Section  2d  of this Act, was
 8    $10,000 or more during  the  preceding  4  complete  calendar
 9    quarters,  he  shall  file  a return with the Department each
10    month by the 20th day of the month next following  the  month
11    during  which  such  tax liability is incurred and shall make
12    payments to the Department on or before the 7th,  15th,  22nd
13    and  last  day  of  the  month during which such liability is
14    incurred. On and after October 1,  2000,  if  the  taxpayer's
15    average  monthly  tax  liability to the Department under this
16    Act, the Use Tax Act, the Service Occupation Tax Act, and the
17    Service Use Tax Act,  excluding  any  liability  for  prepaid
18    sales  tax  to  be  remitted in accordance with Section 2d of
19    this Act, was $20,000 or more during the preceding 4 complete
20    calendar quarters, he shall file a return with the Department
21    each month by the 20th day of the month  next  following  the
22    month  during  which such tax liability is incurred and shall
23    make payment to the Department on or before  the  7th,  15th,
24    22nd and last day of the month during which such liability is
25    incurred.    If  the month during which such tax liability is
26    incurred began prior to January 1, 1985, each  payment  shall
27    be  in  an  amount  equal  to  1/4  of  the taxpayer's actual
28    liability for the month or an amount set  by  the  Department
29    not  to  exceed  1/4  of the average monthly liability of the
30    taxpayer to the  Department  for  the  preceding  4  complete
31    calendar  quarters  (excluding the month of highest liability
32    and the month of lowest liability in such 4 quarter  period).
33    If  the  month  during  which  such tax liability is incurred
34    begins on or after January 1, 1985 and prior  to  January  1,
 
SB1310 Engrossed            -61-               LRB9110257SMdv
 1    1987,  each  payment  shall be in an amount equal to 22.5% of
 2    the taxpayer's actual liability for the month or 27.5% of the
 3    taxpayer's liability for  the  same  calendar  month  of  the
 4    preceding year.  If the month during which such tax liability
 5    is  incurred  begins on or after January 1, 1987 and prior to
 6    January 1, 1988, each payment shall be in an amount equal  to
 7    22.5%  of  the  taxpayer's  actual liability for the month or
 8    26.25% of the taxpayer's  liability  for  the  same  calendar
 9    month  of the preceding year.  If the month during which such
10    tax liability is incurred begins on or after January 1, 1988,
11    and prior to January 1, 1989, or begins on or  after  January
12    1, 1996, each payment shall be in an amount equal to 22.5% of
13    the  taxpayer's  actual liability for the month or 25% of the
14    taxpayer's liability for  the  same  calendar  month  of  the
15    preceding  year. If the month during which such tax liability
16    is incurred begins on or after January 1, 1989, and prior  to
17    January  1, 1996, each payment shall be in an amount equal to
18    22.5% of the taxpayer's actual liability for the month or 25%
19    of the taxpayer's liability for the same  calendar  month  of
20    the preceding year or 100% of the taxpayer's actual liability
21    for the quarter monthly reporting period.  The amount of such
22    quarter  monthly payments shall be credited against the final
23    tax liability  of  the  taxpayer's  return  for  that  month.
24    Before  October  1, 2000, once applicable, the requirement of
25    the making of quarter monthly payments to the  Department  by
26    taxpayers  having an average monthly tax liability of $10,000
27    or more as determined in  the  manner  provided  above  shall
28    continue  until  such taxpayer's average monthly liability to
29    the Department  during  the  preceding  4  complete  calendar
30    quarters  (excluding  the  month of highest liability and the
31    month of lowest liability) is less than $9,000, or until such
32    taxpayer's average monthly liability  to  the  Department  as
33    computed  for  each  calendar  quarter  of  the  4  preceding
34    complete  calendar  quarter  period  is  less  than  $10,000.
 
SB1310 Engrossed            -62-               LRB9110257SMdv
 1    However,  if  a  taxpayer  can  show  the  Department  that a
 2    substantial change in the taxpayer's  business  has  occurred
 3    which  causes  the  taxpayer  to  anticipate that his average
 4    monthly tax liability for the reasonably  foreseeable  future
 5    will fall below the $10,000 threshold stated above, then such
 6    taxpayer  may  petition  the  Department for a change in such
 7    taxpayer's reporting status.  On and after October  1,  2000,
 8    once  applicable,  the  requirement  of the making of quarter
 9    monthly payments to the Department  by  taxpayers  having  an
10    average   monthly   tax  liability  of  $20,000  or  more  as
11    determined in the manner provided above shall continue  until
12    such  taxpayer's  average monthly liability to the Department
13    during the preceding 4 complete calendar quarters  (excluding
14    the  month  of  highest  liability  and  the  month of lowest
15    liability) is less than  $19,000  or  until  such  taxpayer's
16    average  monthly  liability to the Department as computed for
17    each calendar quarter of the 4  preceding  complete  calendar
18    quarter  period is less than $20,000.  However, if a taxpayer
19    can show the Department that  a  substantial  change  in  the
20    taxpayer's business has occurred which causes the taxpayer to
21    anticipate  that  his  average  monthly tax liability for the
22    reasonably foreseeable future will  fall  below  the  $20,000
23    threshold  stated  above, then such taxpayer may petition the
24    Department for a change in such taxpayer's reporting  status.
25    The  Department shall change such taxpayer's reporting status
26    unless it finds that such change is seasonal  in  nature  and
27    not  likely  to  be  long  term.  If any such quarter monthly
28    payment is not paid at the time or in the amount required  by
29    this Section, then the taxpayer shall be liable for penalties
30    and interest on the difference between the minimum amount due
31    as  a  payment and the amount of such quarter monthly payment
32    actually and timely paid, except insofar as the taxpayer  has
33    previously  made payments for that month to the Department in
34    excess of the minimum payments previously due as provided  in
 
SB1310 Engrossed            -63-               LRB9110257SMdv
 1    this  Section. The Department shall make reasonable rules and
 2    regulations to govern the quarter monthly payment amount  and
 3    quarter monthly payment dates for taxpayers who file on other
 4    than a calendar monthly basis.
 5        Without  regard to whether a taxpayer is required to make
 6    quarter monthly payments as specified above, any taxpayer who
 7    is required by Section 2d of this Act to  collect  and  remit
 8    prepaid  taxes  and has collected prepaid taxes which average
 9    in excess  of  $25,000  per  month  during  the  preceding  2
10    complete  calendar  quarters,  shall  file  a return with the
11    Department as required by Section 2f and shall make  payments
12    to  the  Department on or before the 7th, 15th, 22nd and last
13    day of the month during which such liability is incurred.  If
14    the month during which such tax liability is  incurred  began
15    prior  to  the effective date of this amendatory Act of 1985,
16    each payment shall be in an amount not less than 22.5% of the
17    taxpayer's actual liability under Section 2d.  If  the  month
18    during  which  such  tax  liability  is incurred begins on or
19    after January 1, 1986, each payment shall  be  in  an  amount
20    equal  to  22.5%  of  the taxpayer's actual liability for the
21    month or 27.5% of  the  taxpayer's  liability  for  the  same
22    calendar  month of the preceding calendar year.  If the month
23    during which such tax liability  is  incurred  begins  on  or
24    after  January  1,  1987,  each payment shall be in an amount
25    equal to 22.5% of the taxpayer's  actual  liability  for  the
26    month  or  26.25%  of  the  taxpayer's liability for the same
27    calendar month of the preceding year.   The  amount  of  such
28    quarter  monthly payments shall be credited against the final
29    tax liability of the taxpayer's return for that  month  filed
30    under  this  Section or Section 2f, as the case may be.  Once
31    applicable, the requirement of the making of quarter  monthly
32    payments  to  the Department pursuant to this paragraph shall
33    continue until such taxpayer's average  monthly  prepaid  tax
34    collections during the preceding 2 complete calendar quarters
 
SB1310 Engrossed            -64-               LRB9110257SMdv
 1    is  $25,000  or less.  If any such quarter monthly payment is
 2    not paid at the time or in the amount required, the  taxpayer
 3    shall   be   liable   for  penalties  and  interest  on  such
 4    difference, except insofar as  the  taxpayer  has  previously
 5    made  payments  for  that  month  in  excess  of  the minimum
 6    payments previously due.
 7        If any payment provided for in this Section  exceeds  the
 8    taxpayer's  liabilities  under this Act, the Use Tax Act, the
 9    Service Occupation Tax Act and the Service Use  Tax  Act,  as
10    shown on an original monthly return, the Department shall, if
11    requested  by  the  taxpayer,  issue to the taxpayer a credit
12    memorandum no later than 30 days after the date  of  payment.
13    The  credit  evidenced  by  such  credit  memorandum  may  be
14    assigned  by  the  taxpayer  to a similar taxpayer under this
15    Act, the Use Tax Act, the Service Occupation Tax Act  or  the
16    Service  Use Tax Act, in accordance with reasonable rules and
17    regulations to be prescribed by the Department.  If  no  such
18    request  is made, the taxpayer may credit such excess payment
19    against tax liability subsequently  to  be  remitted  to  the
20    Department  under  this  Act,  the  Use  Tax Act, the Service
21    Occupation Tax Act or the Service Use Tax Act, in  accordance
22    with  reasonable  rules  and  regulations  prescribed  by the
23    Department.  If the Department subsequently  determined  that
24    all  or  any part of the credit taken was not actually due to
25    the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
26    shall be reduced by 2.1% or 1.75% of the  difference  between
27    the  credit  taken  and  that actually due, and that taxpayer
28    shall  be  liable  for  penalties  and   interest   on   such
29    difference.
30        If a retailer of motor fuel is entitled to a credit under
31    Section 2d of this Act which exceeds the taxpayer's liability
32    to  the  Department  under  this  Act for the month which the
33    taxpayer is filing a return, the Department shall  issue  the
34    taxpayer a credit memorandum for the excess.
 
SB1310 Engrossed            -65-               LRB9110257SMdv
 1        Beginning  January  1,  1990,  each  month the Department
 2    shall pay into the Local Government Tax Fund, a special  fund
 3    in  the  State  treasury  which  is  hereby  created, the net
 4    revenue realized for the preceding month from the 1%  tax  on
 5    sales  of  food for human consumption which is to be consumed
 6    off the premises where  it  is  sold  (other  than  alcoholic
 7    beverages,  soft  drinks and food which has been prepared for
 8    immediate consumption) and prescription  and  nonprescription
 9    medicines,  drugs,  medical  appliances  and  insulin,  urine
10    testing materials, syringes and needles used by diabetics.
11        Beginning  January  1,  1990,  each  month the Department
12    shall pay into the County and Mass Transit District  Fund,  a
13    special  fund  in the State treasury which is hereby created,
14    4% of the net revenue realized for the preceding  month  from
15    the 6.25% general rate.
16        Beginning  November  1,  2000,  and  so  long as the rate
17    remains at 1.25%, each month the Department  shall  pay  into
18    the  County  and  Mass  Transit  District Fund 20% of the net
19    revenue realized for the preceding month from the 1.25%  rate
20    on the selling price of motor fuel and gasohol.
21        Beginning  January  1,  1990,  each  month the Department
22    shall pay into the Local Government Tax Fund 16% of  the  net
23    revenue  realized  for  the  preceding  month  from the 6.25%
24    general rate  on  the  selling  price  of  tangible  personal
25    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
 
SB1310 Engrossed            -66-               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  this  Act, Section 9 of the Use Tax Act, Section 9 of the
 6    Service Use Tax Act, and Section 9 of the Service  Occupation
 7    Tax  Act,  such  Acts being hereinafter called the "Tax Acts"
 8    and such aggregate of 2.2% or 3.8%, as the case  may  be,  of
 9    moneys being hereinafter called the "Tax Act Amount", and (2)
10    the  amount  transferred  to the Build Illinois Fund from the
11    State and Local Sales Tax Reform Fund shall be less than  the
12    Annual  Specified  Amount (as hereinafter defined), an amount
13    equal to the difference shall be immediately  paid  into  the
14    Build  Illinois  Fund  from  other  moneys  received  by  the
15    Department  pursuant  to  the Tax Acts; the "Annual Specified
16    Amount" means the amounts specified below  for  fiscal  years
17    1986 through 1993:
18             Fiscal Year              Annual Specified Amount
19                 1986                       $54,800,000
20                 1987                       $76,650,000
21                 1988                       $80,480,000
22                 1989                       $88,510,000
23                 1990                       $115,330,000
24                 1991                       $145,470,000
25                 1992                       $182,730,000
26                 1993                      $206,520,000;
27    and  means  the Certified Annual Debt Service Requirement (as
28    defined in Section 13 of the Build Illinois Bond Act) or  the
29    Tax  Act  Amount,  whichever is greater, for fiscal year 1994
30    and each fiscal year thereafter; and further  provided,  that
31    if  on  the last business day of any month the sum of (1) the
32    Tax Act Amount  required  to  be  deposited  into  the  Build
33    Illinois  Bond Account in the Build Illinois Fund during such
34    month and (2) the amount transferred to  the  Build  Illinois
 
SB1310 Engrossed            -67-               LRB9110257SMdv
 1    Fund  from  the  State  and Local Sales Tax Reform Fund shall
 2    have been less than 1/12 of the Annual Specified  Amount,  an
 3    amount equal to the difference shall be immediately paid into
 4    the  Build  Illinois  Fund  from other moneys received by the
 5    Department pursuant to the Tax Acts; and,  further  provided,
 6    that  in  no  event  shall  the  payments  required under the
 7    preceding proviso result in aggregate payments into the Build
 8    Illinois Fund pursuant to this clause (b) for any fiscal year
 9    in excess of the greater of (i) the Tax Act  Amount  or  (ii)
10    the  Annual  Specified  Amount  for  such  fiscal  year.  The
11    amounts payable into the Build Illinois Fund under clause (b)
12    of the first sentence in this paragraph shall be payable only
13    until such time as the aggregate amount on deposit under each
14    trust  indenture  securing  Bonds  issued   and   outstanding
15    pursuant to the Build Illinois Bond Act is sufficient, taking
16    into  account any future investment income, to fully provide,
17    in accordance with such indenture, for the defeasance  of  or
18    the  payment  of  the  principal  of,  premium,  if  any, and
19    interest on the Bonds secured by such indenture  and  on  any
20    Bonds expected to be issued thereafter and all fees and costs
21    payable  with  respect  thereto,  all  as  certified  by  the
22    Director  of  the  Bureau  of  the  Budget.   If  on the last
23    business day of any month  in  which  Bonds  are  outstanding
24    pursuant  to  the  Build  Illinois Bond Act, the aggregate of
25    moneys deposited in the Build Illinois Bond  Account  in  the
26    Build  Illinois  Fund  in  such  month shall be less than the
27    amount required to be transferred  in  such  month  from  the
28    Build  Illinois  Bond  Account  to  the  Build  Illinois Bond
29    Retirement and Interest Fund pursuant to Section  13  of  the
30    Build  Illinois  Bond Act, an amount equal to such deficiency
31    shall be immediately paid from other moneys received  by  the
32    Department  pursuant  to  the  Tax Acts to the Build Illinois
33    Fund; provided, however, that any amounts paid to  the  Build
34    Illinois  Fund  in  any fiscal year pursuant to this sentence
 
SB1310 Engrossed            -68-               LRB9110257SMdv
 1    shall be deemed to constitute payments pursuant to clause (b)
 2    of the first sentence of this paragraph and shall reduce  the
 3    amount  otherwise  payable  for  such fiscal year pursuant to
 4    that clause (b).   The  moneys  received  by  the  Department
 5    pursuant  to  this  Act and required to be deposited into the
 6    Build Illinois Fund are subject  to  the  pledge,  claim  and
 7    charge  set  forth  in  Section 12 of the Build Illinois Bond
 8    Act.
 9        Subject to payment of amounts  into  the  Build  Illinois
10    Fund  as  provided  in  the  preceding  paragraph  or  in any
11    amendment thereto hereafter enacted, the following  specified
12    monthly   installment   of   the   amount  requested  in  the
13    certificate of the Chairman  of  the  Metropolitan  Pier  and
14    Exposition  Authority  provided  under  Section  8.25f of the
15    State Finance Act, but not in excess of  sums  designated  as
16    "Total  Deposit",  shall  be  deposited in the aggregate from
17    collections under Section 9 of the Use Tax Act, Section 9  of
18    the  Service Use Tax Act, Section 9 of the Service Occupation
19    Tax Act, and Section 3 of the Retailers' Occupation  Tax  Act
20    into  the  McCormick  Place  Expansion  Project  Fund  in the
21    specified fiscal years.
22             Fiscal Year                   Total Deposit
23                 1993                            $0
24                 1994                        53,000,000
25                 1995                        58,000,000
26                 1996                        61,000,000
27                 1997                        64,000,000
28                 1998                        68,000,000
29                 1999                        71,000,000
30                 2000                        75,000,000
31                 2001                        80,000,000
32                 2002                        84,000,000
33                 2003                        89,000,000
34                 2004                        93,000,000
 
SB1310 Engrossed            -69-               LRB9110257SMdv
 1                 2005                        97,000,000
 2                 2006                       102,000,000
 3                 2007                       108,000,000
 4                 2008                       115,000,000
 5                 2009                       120,000,000
 6                 2010                       126,000,000
 7                 2011                       132,000,000
 8                 2012                       138,000,000
 9                 2013 and                   145,000,000
10        each fiscal year
11        thereafter that bonds
12        are outstanding under
13        Section 13.2 of the
14        Metropolitan Pier and
15        Exposition Authority
16        Act, but not after fiscal year 2029.
17        Beginning July 20, 1993 and in each month of each  fiscal
18    year  thereafter,  one-eighth  of the amount requested in the
19    certificate of the Chairman  of  the  Metropolitan  Pier  and
20    Exposition  Authority  for  that fiscal year, less the amount
21    deposited into the McCormick Place Expansion Project Fund  by
22    the  State Treasurer in the respective month under subsection
23    (g) of Section 13 of the  Metropolitan  Pier  and  Exposition
24    Authority  Act,  plus cumulative deficiencies in the deposits
25    required under this Section for previous  months  and  years,
26    shall be deposited into the McCormick Place Expansion Project
27    Fund,  until  the  full amount requested for the fiscal year,
28    but not in excess of the amount  specified  above  as  "Total
29    Deposit", has been deposited.
30        Subject  to  payment  of  amounts into the Build Illinois
31    Fund and the McCormick Place Expansion Project Fund  pursuant
32    to  the  preceding  paragraphs  or  in  any amendment thereto
33    hereafter enacted, each month the Department shall  pay  into
34    the  Local  Government  Distributive  Fund  0.4%  of  the net
 
SB1310 Engrossed            -70-               LRB9110257SMdv
 1    revenue realized for the preceding month from the 5%  general
 2    rate  or  0.4%  of  80%  of  the net revenue realized for the
 3    preceding month from the 6.25% general rate, as the case  may
 4    be,  on the selling price of tangible personal property which
 5    amount shall, subject to  appropriation,  be  distributed  as
 6    provided  in  Section 2 of the State Revenue Sharing Act.  No
 7    payments or distributions pursuant to this paragraph shall be
 8    made if the  tax  imposed  by  this  Act  on  photoprocessing
 9    products  is  declared  unconstitutional,  or if the proceeds
10    from such tax are unavailable  for  distribution  because  of
11    litigation.
12        Subject  to  payment  of  amounts into the Build Illinois
13    Fund, the McCormick Place Expansion Project to the  preceding
14    paragraphs  or  in  any amendments thereto hereafter enacted,
15    beginning July 1, 1993, the Department shall each  month  pay
16    into  the Illinois Tax Increment Fund 0.27% of 80% of the net
17    revenue realized for  the  preceding  month  from  the  6.25%
18    general  rate  on  the  selling  price  of  tangible personal
19    property.
20        Of the remainder of the moneys received by the Department
21    pursuant to this Act, 75% thereof  shall  be  paid  into  the
22    State Treasury and 25% shall be reserved in a special account
23    and  used  only for the transfer to the Common School Fund as
24    part of the monthly transfer from the General Revenue Fund in
25    accordance with Section 8a of the State Finance Act.
26        The Department may, upon separate  written  notice  to  a
27    taxpayer,  require  the taxpayer to prepare and file with the
28    Department on a form prescribed by the Department within  not
29    less  than  60  days  after  receipt  of the notice an annual
30    information return for the tax year specified in the  notice.
31    Such   annual  return  to  the  Department  shall  include  a
32    statement of gross receipts as shown by the  retailer's  last
33    Federal  income  tax  return.   If  the total receipts of the
34    business as reported in the Federal income tax return do  not
 
SB1310 Engrossed            -71-               LRB9110257SMdv
 1    agree  with  the gross receipts reported to the Department of
 2    Revenue for the same period, the retailer shall attach to his
 3    annual return a schedule showing a reconciliation  of  the  2
 4    amounts  and  the reasons for the difference.  The retailer's
 5    annual return to the Department shall also disclose the  cost
 6    of goods sold by the retailer during the year covered by such
 7    return,  opening  and  closing  inventories of such goods for
 8    such year, costs of goods used from stock or taken from stock
 9    and given away by the  retailer  during  such  year,  payroll
10    information  of  the retailer's business during such year and
11    any additional reasonable information  which  the  Department
12    deems  would  be  helpful  in determining the accuracy of the
13    monthly, quarterly or annual returns filed by  such  retailer
14    as provided for in this Section.
15        If the annual information return required by this Section
16    is  not  filed  when  and  as required, the taxpayer shall be
17    liable as follows:
18             (i)  Until January 1, 1994, the  taxpayer  shall  be
19        liable  for  a  penalty equal to 1/6 of 1% of the tax due
20        from such taxpayer under this Act during the period to be
21        covered by the annual return for each month  or  fraction
22        of  a  month  until such return is filed as required, the
23        penalty to be assessed and collected in the  same  manner
24        as any other penalty provided for in this Act.
25             (ii)  On  and  after  January  1, 1994, the taxpayer
26        shall be liable for a penalty as described in Section 3-4
27        of the Uniform Penalty and Interest Act.
28        The chief executive officer, proprietor, owner or highest
29    ranking manager shall sign the annual return to  certify  the
30    accuracy  of  the information contained therein.   Any person
31    who willfully signs the annual  return  containing  false  or
32    inaccurate   information  shall  be  guilty  of  perjury  and
33    punished accordingly.  The annual return form  prescribed  by
34    the  Department  shall  include  a  warning  that  the person
 
SB1310 Engrossed            -72-               LRB9110257SMdv
 1    signing the return may be liable for perjury.
 2        The provisions of this Section concerning the  filing  of
 3    an  annual  information return do not apply to a retailer who
 4    is not required to file an income tax return with the  United
 5    States Government.
 6        As  soon  as  possible after the first day of each month,
 7    upon  certification  of  the  Department  of   Revenue,   the
 8    Comptroller  shall  order transferred and the Treasurer shall
 9    transfer from the General Revenue Fund to the Motor Fuel  Tax
10    Fund  an  amount  equal  to  1.7%  of  80% of the net revenue
11    realized under this  Act  for  the  second  preceding  month.
12    Beginning  April 1, 2000, this transfer is no longer required
13    and shall not be made.
14        Net revenue realized for a month  shall  be  the  revenue
15    collected  by the State pursuant to this Act, less the amount
16    paid out during  that  month  as  refunds  to  taxpayers  for
17    overpayment of liability.
18        For  greater simplicity of administration, manufacturers,
19    importers and wholesalers whose products are sold  at  retail
20    in Illinois by numerous retailers, and who wish to do so, may
21    assume  the  responsibility  for accounting and paying to the
22    Department all tax accruing under this Act  with  respect  to
23    such  sales,  if  the  retailers who are affected do not make
24    written objection to the Department to this arrangement.
25        Any  person  who  promotes,  organizes,  provides  retail
26    selling space for concessionaires or other types  of  sellers
27    at the Illinois State Fair, DuQuoin State Fair, county fairs,
28    local  fairs, art shows, flea markets and similar exhibitions
29    or events, including any transient  merchant  as  defined  by
30    Section  2 of the Transient Merchant Act of 1987, is required
31    to file a report with the Department providing  the  name  of
32    the  merchant's  business,  the name of the person or persons
33    engaged in merchant's business,  the  permanent  address  and
34    Illinois  Retailers Occupation Tax Registration Number of the
 
SB1310 Engrossed            -73-               LRB9110257SMdv
 1    merchant, the dates and  location  of  the  event  and  other
 2    reasonable  information that the Department may require.  The
 3    report must be filed not later than the 20th day of the month
 4    next following the month during which the event  with  retail
 5    sales  was  held.   Any  person  who  fails  to file a report
 6    required by this Section commits a business  offense  and  is
 7    subject to a fine not to exceed $250.
 8        Any  person  engaged  in the business of selling tangible
 9    personal property at retail as a concessionaire or other type
10    of seller at the  Illinois  State  Fair,  county  fairs,  art
11    shows, flea markets and similar exhibitions or events, or any
12    transient merchants, as defined by Section 2 of the Transient
13    Merchant  Act of 1987, may be required to make a daily report
14    of the amount of such sales to the Department and to  make  a
15    daily  payment of the full amount of tax due.  The Department
16    shall impose this requirement when it finds that there  is  a
17    significant  risk  of loss of revenue to the State at such an
18    exhibition or event.   Such  a  finding  shall  be  based  on
19    evidence  that  a  substantial  number  of concessionaires or
20    other sellers who are  not  residents  of  Illinois  will  be
21    engaging   in  the  business  of  selling  tangible  personal
22    property at retail at  the  exhibition  or  event,  or  other
23    evidence  of  a  significant  risk  of loss of revenue to the
24    State.  The Department shall notify concessionaires and other
25    sellers affected by the imposition of this  requirement.   In
26    the   absence   of   notification   by  the  Department,  the
27    concessionaires and other sellers shall file their returns as
28    otherwise required in this Section.
29    (Source: P.A.  90-491,  eff.  1-1-99;  90-612,  eff.  7-8-98;
30    91-37,  eff.  7-1-99;  91-51,  eff.  6-30-99;  91-101,   eff.
31    7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)

32        Section  22.   The  Motor  Fuel  Tax  Law  is  amended by
33    changing Section 13a as follows:
 
SB1310 Engrossed            -74-               LRB9110257SMdv
 1        (35 ILCS 505/13a) (from Ch. 120, par. 429a)
 2        Sec. 13a.  (1) A tax is hereby imposed upon  the  use  of
 3    motor  fuel  upon  highways of this State by commercial motor
 4    vehicles. The tax shall be comprised of 2  parts.   Part  (a)
 5    shall be at the rate established by Section 2 of this Act, as
 6    heretofore  or  hereafter  amended.  Part (b) shall be at the
 7    rate established by subsection (2) of this Section as now  or
 8    hereafter amended.
 9        (2)  A  rate shall be established by the Department as of
10    January 1  of each year using the average "selling price", as
11    defined in the Retailers' Occupation Tax Act, per  gallon  of
12    motor  fuel  sold in this State during the previous 12 months
13    and multiplying it by 1.25% 6 1/4% to determine the cents per
14    gallon rate. If, as  a  result  of  the  provisions  of  this
15    amendatory  Act of the 91st General Assembly, the rate of tax
16    imposed on  the  sale  of  motor  fuel  and  gasohol  by  the
17    Retailers'  Occupation  Tax Act returns to 6.25%, then a rate
18    shall be established by the Department as of  January  1   of
19    each  year  using  the average "selling price", as defined in
20    the Retailers' Occupation Tax Act, per gallon of  motor  fuel
21    sold  in  this  State  during  the  previous  12  months  and
22    multiplying  it  by  6.25%  to determine the cents per gallon
23    rate.
24    (Source: P.A. 88-480.)

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

27        (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
28        Sec.  5-1006.  Home Rule County Retailers' Occupation Tax
29    Law. Any county that is a home rule unit  may  impose  a  tax
30    upon  all persons engaged in the business of selling tangible
31    personal property, other than an item  of  tangible  personal
32    property  titled or registered with an agency of this State's
 
SB1310 Engrossed            -75-               LRB9110257SMdv
 1    government, at retail in the county  on  the  gross  receipts
 2    from  such  sales  made  in the course of their business.  If
 3    imposed, this tax shall only be imposed in  1/4%  increments.
 4    On  and  after September 1, 1991, this additional tax may not
 5    be imposed on the sales of food for human  consumption  which
 6    is  to  be  consumed off the premises where it is sold (other
 7    than alcoholic beverages, soft drinks and food which has been
 8    prepared for  immediate  consumption)  and  prescription  and
 9    nonprescription  medicines,  drugs,  medical  appliances  and
10    insulin,  urine  testing materials, syringes and needles used
11    by diabetics. The tax imposed by a home rule county  pursuant
12    to  this Section and all civil penalties that may be assessed
13    as an incident thereof shall be collected and enforced by the
14    State Department of Revenue.  The certificate of registration
15    that is issued by the Department  to  a  retailer  under  the
16    Retailers'  Occupation  Tax  Act shall permit the retailer to
17    engage in a business that is taxable under any  ordinance  or
18    resolution   enacted   pursuant   to   this  Section  without
19    registering  separately  with  the  Department   under   such
20    ordinance   or   resolution   or  under  this  Section.   The
21    Department shall have full power to  administer  and  enforce
22    this   Section;  to  collect  all  taxes  and  penalties  due
23    hereunder; to dispose of taxes and penalties so collected  in
24    the  manner hereinafter provided; and to determine all rights
25    to credit memoranda  arising  on  account  of  the  erroneous
26    payment  of  tax or penalty hereunder.  In the administration
27    of, and compliance with, this  Section,  the  Department  and
28    persons  who  are subject to this Section shall have the same
29    rights, remedies, privileges, immunities, powers and  duties,
30    and   be   subject  to  the  same  conditions,  restrictions,
31    limitations, penalties and definitions of terms,  and  employ
32    the same modes of procedure, as are prescribed in Sections 1,
33    1a,  1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in
34    respect to all provisions therein other than the  State  rate
 
SB1310 Engrossed            -76-               LRB9110257SMdv
 1    of  tax),  4,  5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
 2    5l, 6, 6a, 6b, 6c, 7,  8,  9,  10,  11,  12  and  13  of  the
 3    Retailers'  Occupation Tax Act and Section 3-7 of the Uniform
 4    Penalty and Interest Act, as fully  as  if  those  provisions
 5    were set forth herein.
 6        No  tax  may be imposed by a home rule county pursuant to
 7    this Section unless the county also imposes a tax at the same
 8    rate pursuant to Section 5-1007.
 9        A home rule county that has not imposed a tax under  this
10    Section  on  the  sale  of  motor  fuel or gasohol before the
11    effective date of this amendatory Act  of  the  91st  General
12    Assembly shall not impose such a tax on or after that date. A
13    home rule county that has imposed a tax under this Section on
14    the  sale  of motor fuel or gasohol before the effective date
15    of this amendatory Act of the 91st General Assembly shall not
16    increase the rate of the tax on or after that date. If, as  a
17    result  of  the provisions of this amendatory Act of the 91st
18    General Assembly, the rate of tax  imposed  on  the  sale  of
19    motor  fuel  and gasohol by the Retailers' Occupation Tax Act
20    returns to 6.25%, then the prohibition against imposing a tax
21    on the sale of motor fuel and  gasohol  and  the  prohibition
22    against an increase in the rate of any tax already imposed on
23    the  sale  of motor fuel and gasohol are no longer in effect.
24    This amendatory Act of the 91st General Assembly is a  denial
25    and  limitation  of  home rule powers to tax under subsection
26    (g) of Section 6 of Article VII of the Illinois Constitution.
27        Persons subject  to  any  tax  imposed  pursuant  to  the
28    authority  granted  in  this Section may reimburse themselves
29    for their seller's  tax  liability  hereunder  by  separately
30    stating such tax as an additional charge, which charge may be
31    stated  in  combination,  in  a single amount, with State tax
32    which sellers are required to collect under the Use Tax  Act,
33    pursuant  to  such  bracket  schedules  as the Department may
34    prescribe.
 
SB1310 Engrossed            -77-               LRB9110257SMdv
 1        Whenever the Department determines that a  refund  should
 2    be made under this Section to a claimant instead of issuing a
 3    credit  memorandum,  the  Department  shall  notify the State
 4    Comptroller, who shall cause the order to be  drawn  for  the
 5    amount  specified and to the person named in the notification
 6    from the Department. The refund shall be paid  by  the  State
 7    Treasurer  out  of the home rule county retailers' occupation
 8    tax fund.
 9        The Department shall forthwith  pay  over  to  the  State
10    Treasurer,  ex  officio,  as trustee, all taxes and penalties
11    collected hereunder.  On or  before  the  25th  day  of  each
12    calendar  month,  the Department shall prepare and certify to
13    the Comptroller the disbursement of stated sums of  money  to
14    named counties, the counties to be those from which retailers
15    have  paid  taxes  or  penalties  hereunder to the Department
16    during the second preceding calendar month.  The amount to be
17    paid to each county shall be the amount (not including credit
18    memoranda) collected hereunder during  the  second  preceding
19    calendar   month   by  the  Department  plus  an  amount  the
20    Department determines is necessary to offset any amounts that
21    were erroneously paid to a different  taxing  body,  and  not
22    including  an  amount  equal  to  the  amount of refunds made
23    during the second preceding calendar month by the  Department
24    on  behalf of such county, and not including any amount which
25    the Department determines is necessary to offset any  amounts
26    which  were  payable  to  a  different  taxing  body but were
27    erroneously paid to the county. Within 10 days after receipt,
28    by the Comptroller, of the disbursement certification to  the
29    counties  provided  for  in  this  Section to be given to the
30    Comptroller by the Department, the  Comptroller  shall  cause
31    the  orders  to  be  drawn  for  the  respective  amounts  in
32    accordance    with    the   directions   contained   in   the
33    certification.
34        In addition to the disbursement required by the preceding
 
SB1310 Engrossed            -78-               LRB9110257SMdv
 1    paragraph, an allocation shall be made in March of each  year
 2    to   each   county   that  received  more  than  $500,000  in
 3    disbursements under the preceding paragraph in the  preceding
 4    calendar year.  The allocation shall be in an amount equal to
 5    the  average  monthly  distribution  made to each such county
 6    under the preceding paragraph during the  preceding  calendar
 7    year  (excluding  the  2  months  of  highest receipts).  The
 8    distribution made in March of each  year  subsequent  to  the
 9    year  in  which  an  allocation  was  made  pursuant  to this
10    paragraph and the preceding paragraph shall be reduced by the
11    amount allocated and disbursed under this  paragraph  in  the
12    preceding  calendar  year.   The Department shall prepare and
13    certify to the Comptroller for disbursement  the  allocations
14    made in accordance with this paragraph.
15        For  the  purpose  of  determining the local governmental
16    unit whose tax is applicable, a retail sale by a producer  of
17    coal  or  other mineral mined in Illinois is a sale at retail
18    at the place  where  the  coal  or  other  mineral  mined  in
19    Illinois  is  extracted  from the earth.  This paragraph does
20    not apply to coal or other mineral when it  is  delivered  or
21    shipped  by  the  seller  to the purchaser at a point outside
22    Illinois so that the sale is exempt under the  United  States
23    Constitution as a sale in interstate or foreign commerce.
24        Nothing in this Section shall be construed to authorize a
25    county  to impose a tax upon the privilege of engaging in any
26    business which under the Constitution of  the  United  States
27    may not be made the subject of taxation by this State.
28        An  ordinance  or  resolution imposing or discontinuing a
29    tax hereunder or effecting a change in the rate thereof shall
30    be adopted and  a  certified  copy  thereof  filed  with  the
31    Department  on or before the first day of June, whereupon the
32    Department shall  proceed  to  administer  and  enforce  this
33    Section  as of the first day of September next following such
34    adoption and filing. Beginning January 1, 1992, an  ordinance
 
SB1310 Engrossed            -79-               LRB9110257SMdv
 1    or  resolution imposing or discontinuing the tax hereunder or
 2    effecting a change in the rate thereof shall be adopted and a
 3    certified copy thereof filed with the Department on or before
 4    the first day of July, whereupon the Department shall proceed
 5    to administer and enforce this Section as of the first day of
 6    October next following such adoption  and  filing.  Beginning
 7    January  1,  1993,  an  ordinance  or  resolution imposing or
 8    discontinuing the tax hereunder or effecting a change in  the
 9    rate  thereof  shall  be adopted and a certified copy thereof
10    filed with the Department on  or  before  the  first  day  of
11    October, whereupon the Department shall proceed to administer
12    and  enforce this Section as of the first day of January next
13    following such adoption and filing. Beginning April 1,  1998,
14    an  ordinance or resolution imposing or discontinuing the tax
15    hereunder or effecting a change in  the  rate  thereof  shall
16    either (i) be adopted and a certified copy thereof filed with
17    the Department on or before the first day of April, whereupon
18    the  Department  shall proceed to administer and enforce this
19    Section as of the  first  day  of  July  next  following  the
20    adoption  and filing; or (ii) be adopted and a certified copy
21    thereof filed with the Department on or before the first  day
22    of   October,  whereupon  the  Department  shall  proceed  to
23    administer and enforce this Section as of the  first  day  of
24    January next following the adoption and filing.
25        When certifying the amount of a monthly disbursement to a
26    county  under  this Section, the Department shall increase or
27    decrease such amount by an amount  necessary  to  offset  any
28    misallocation  of  previous disbursements.  The offset amount
29    shall be the amount erroneously disbursed within the previous
30    6 months from the time a misallocation is discovered.
31        This Section shall be known and may be cited as the  Home
32    Rule County Retailers' Occupation Tax Law.
33    (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
 
SB1310 Engrossed            -80-               LRB9110257SMdv
 1        (55 ILCS 5/5-1006.5)
 2        Sec.  5-1006.5.  Special County Retailers' Occupation Tax
 3    For Public Safety.
 4        (a)  The county board of any county may impose a tax upon
 5    all persons engaged  in  the  business  of  selling  tangible
 6    personal  property,  other  than  personal property titled or
 7    registered with an agency  of  this  State's  government,  at
 8    retail  in  the  county  on the gross receipts from the sales
 9    made in the course of business to provide revenue to be  used
10    exclusively  for  public safety purposes in that county, if a
11    proposition for the tax has been submitted to the electors of
12    that county and approved by a majority of those voting on the
13    question.  If imposed, this tax  shall  be  imposed  only  in
14    one-quarter  percent  increments.  By  resolution, the county
15    board may order  the  proposition  to  be  submitted  at  any
16    election.  The county clerk shall certify the question to the
17    proper  election  authority, who shall submit the proposition
18    at an election in accordance with the general election law.
19        The proposition shall be in substantially  the  following
20    form:
21             "Shall  (name  of  county) be authorized to impose a
22        public safety tax at the rate of ....  upon  all  persons
23        engaged  in  the  business  of  selling tangible personal
24        property at retail in the county on gross  receipts  from
25        the sales made in the course of their business to be used
26        for  crime prevention, detention, and other public safety
27        purposes?"
28    Votes shall be recorded as Yes or No.  If a majority  of  the
29    electors  voting  on the proposition vote in favor of it, the
30    county may impose the tax.
31        This additional tax may not be imposed on  the  sales  of
32    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 which has been prepared for immediate
 
SB1310 Engrossed            -81-               LRB9110257SMdv
 1    consumption) and prescription and non-prescription medicines,
 2    drugs,  medical  appliances  and   insulin,   urine   testing
 3    materials,  syringes, and needles used by diabetics.  The tax
 4    imposed  by  a  county  under  this  Section  and  all  civil
 5    penalties that may be assessed as  an  incident  of  the  tax
 6    shall be collected and enforced by the Illinois Department of
 7    Revenue.   The  certificate of registration that is issued by
 8    the Department to a retailer under the Retailers'  Occupation
 9    Tax  Act  shall  permit  the retailer to engage in a business
10    that is  taxable  without  registering  separately  with  the
11    Department  under  an  ordinance  or  resolution  under  this
12    Section.   The  Department  has  full power to administer and
13    enforce this Section, to collect all taxes and penalties  due
14    under  this  Section,  to  dispose  of taxes and penalties so
15    collected in the manner provided  in  this  Section,  and  to
16    determine  all  rights to credit memoranda arising on account
17    of the erroneous payment of  a  tax  or  penalty  under  this
18    Section.   In  the administration of and compliance with this
19    Section, the Department and persons who are subject  to  this
20    Section shall (i) have the same rights, remedies, privileges,
21    immunities,  powers,  and duties, (ii) be subject to the same
22    conditions,   restrictions,   limitations,   penalties,   and
23    definitions of terms, and (iii)  employ  the  same  modes  of
24    procedure  as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
25    1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10  (in  respect  to
26    all  provisions  contained  in  those Sections other than the
27    State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3  (except
28    provisions   relating  to  transaction  returns  and  quarter
29    monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,  5i,
30    5j,  5k,  5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13
31    of the Retailers' Occupation Tax Act and Section 3-7  of  the
32    Uniform  Penalty and Interest Act as if those provisions were
33    set forth in this Section.
34        A county that has not imposed a tax under this subsection
 
SB1310 Engrossed            -82-               LRB9110257SMdv
 1    on the sale of motor fuel or  gasohol  before  the  effective
 2    date  of  this  amendatory  Act  of the 91st General Assembly
 3    shall not impose such a tax on or after that date.  A  county
 4    that  has  imposed a tax under this subsection on the sale of
 5    motor fuel or gasohol  before  the  effective  date  of  this
 6    amendatory  Act  of  the  91st  General  Assembly  shall  not
 7    increase  the rate of the tax on or after that date. If, as a
 8    result of the provisions of this amendatory Act of  the  91st
 9    General  Assembly,  the  rate  of  tax imposed on the sale of
10    motor fuel and gasohol by the Retailers' Occupation  Tax  Act
11    returns to 6.25%, then the prohibition against imposing a tax
12    on  the  sale  of  motor fuel and gasohol and the prohibition
13    against an increase in the rate of any tax already imposed on
14    the sale of motor fuel and gasohol are no longer in effect.
15        Persons subject to any tax imposed  under  the  authority
16    granted  in  this  Section may reimburse themselves for their
17    sellers' tax liability by separately stating the  tax  as  an
18    additional charge, which charge may be stated in combination,
19    in a single amount, with State tax which sellers are required
20    to  collect under the Use Tax Act, pursuant to such bracketed
21    schedules as the Department may prescribe.
22        Whenever the Department determines that a  refund  should
23    be made under this Section to a claimant instead of issuing a
24    credit  memorandum,  the  Department  shall  notify the State
25    Comptroller, who shall cause the order to be  drawn  for  the
26    amount  specified and to the person named in the notification
27    from the Department.  The refund shall be paid by  the  State
28    Treasurer   out   of  the  County  Public  Safety  Retailers'
29    Occupation Tax Fund.
30        (b)  If a tax has been imposed under  subsection  (a),  a
31    service occupation tax shall also be imposed at the same rate
32    upon  all  persons engaged, in the county, in the business of
33    making sales of service, who, as an incident to making  those
34    sales  of service, transfer tangible personal property within
 
SB1310 Engrossed            -83-               LRB9110257SMdv
 1    the county as an incident to a sale of service. This tax  may
 2    not be imposed on sales of food for human consumption that is
 3    to  be consumed off the premises where it is sold (other than
 4    alcoholic beverages,  soft  drinks,  and  food  prepared  for
 5    immediate  consumption) and prescription and non-prescription
 6    medicines,  drugs,  medical  appliances  and  insulin,  urine
 7    testing materials, syringes, and needles used  by  diabetics.
 8    The tax imposed under this subsection and all civil penalties
 9    that  may  be  assessed  as  an  incident  thereof  shall  be
10    collected  and  enforced  by  the  Department of Revenue. The
11    Department has full power  to  administer  and  enforce  this
12    subsection; to collect all taxes and penalties due hereunder;
13    to  dispose of taxes and penalties so collected in the manner
14    hereinafter provided; and to determine all rights  to  credit
15    memoranda  arising on account of the erroneous payment of tax
16    or  penalty  hereunder.    In  the  administration  of,   and
17    compliance  with  this subsection, the Department and persons
18    who are subject to this paragraph shall  (i)  have  the  same
19    rights, remedies, privileges, immunities, powers, and duties,
20    (ii)   be  subject  to  the  same  conditions,  restrictions,
21    limitations,   penalties,   exclusions,    exemptions,    and
22    definitions  of  terms,  and  (iii)  employ the same modes of
23    procedure as are prescribed in Sections 2  (except  that  the
24    reference  to State in the definition of supplier maintaining
25    a place of business in this State shall mean the county), 2a,
26    2b, 2c, 3 through 3-50 (in respect to all provisions  therein
27    other  than  the  State  rate  of  tax),  4  (except that the
28    reference to the State shall be  to  the  county),  5,  7,  8
29    (except  that  the  jurisdiction  to which the tax shall be a
30    debt to the extent indicated in that Section 8 shall  be  the
31    county),  9  (except  as  to  the  disposition  of  taxes and
32    penalties  collected),  10,  11,  12  (except  the  reference
33    therein to Section 2b of the Retailers' Occupation Tax  Act),
34    13  (except  that  any  reference to the State shall mean the
 
SB1310 Engrossed            -84-               LRB9110257SMdv
 1    county), Section 15, 16, 17, 18, 19 and  20  of  the  Service
 2    Occupation Tax Act and Section 3-7 of the Uniform Penalty and
 3    Interest  Act, as fully as if those provisions were set forth
 4    herein.
 5        A county that has not imposed a tax under this subsection
 6    on the selling price of motor  fuel  or  gasohol  before  the
 7    effective  date  of  this  amendatory Act of the 91st General
 8    Assembly shall not impose such a tax on or after  that  date.
 9    A  county that has imposed a tax under this subsection on the
10    selling price of motor fuel or gasohol before  the  effective
11    date  of  this  amendatory  Act  of the 91st General Assembly
12    shall not increase the rate of the tax on or after that date.
13    If, as a result of the provisions of this amendatory  Act  of
14    the  91st  General  Assembly,  the rate of tax imposed on the
15    sale of motor fuel and gasohol by the  Retailers'  Occupation
16    Tax  Act  returns  to  6.25%,  then  the  prohibition against
17    imposing a tax on the sale of motor fuel and gasohol and  the
18    prohibition  against  an  increase  in  the  rate  of any tax
19    already imposed on the sale of motor fuel and gasohol are  no
20    longer in effect.
21        Persons  subject  to  any tax imposed under the authority
22    granted in this subsection may reimburse themselves for their
23    serviceman's tax liability by separately stating the  tax  as
24    an   additional   charge,  which  charge  may  be  stated  in
25    combination,  in  a  single  amount,  with  State  tax   that
26    servicemen  are  authorized  to collect under the Service Use
27    Tax Act, in accordance with such  bracket  schedules  as  the
28    Department may prescribe.
29        Whenever  the  Department determines that a refund should
30    be made under  this  subsection  to  a  claimant  instead  of
31    issuing  a credit memorandum, the Department shall notify the
32    State Comptroller, who shall cause the warrant  to  be  drawn
33    for  the  amount  specified,  and to the person named, in the
34    notification from the Department.  The refund shall  be  paid
 
SB1310 Engrossed            -85-               LRB9110257SMdv
 1    by  the  State  Treasurer  out  of  the  County Public Safety
 2    Retailers' Occupation Fund.
 3        Nothing  in  this  subsection  shall  be   construed   to
 4    authorize  the  county  to impose a tax upon the privilege of
 5    engaging in any business which under the Constitution of  the
 6    United  States may not be made the subject of taxation by the
 7    State.
 8        (c)  The Department shall immediately  pay  over  to  the
 9    State  Treasurer,  ex  officio,  as  trustee,  all  taxes and
10    penalties collected under this Section to be  deposited  into
11    the  County  Public  Safety  Retailers'  Occupation Tax Fund,
12    which shall be an unappropriated trust fund held  outside  of
13    the  State  treasury.   On  or  before  the  25th day of each
14    calendar month, the Department shall prepare and  certify  to
15    the  Comptroller  the disbursement of stated sums of money to
16    the  counties  from  which  retailers  have  paid  taxes   or
17    penalties  to  the  Department  during  the  second preceding
18    calendar month.  The amount to be paid to each  county  shall
19    be  the  amount  (not  including  credit memoranda) collected
20    under this Section during the second preceding calendar month
21    by the Department plus an amount the Department determines is
22    necessary to offset any amounts that were erroneously paid to
23    a different taxing body, and  not  including  (i)  an  amount
24    equal  to  the  amount  of  refunds  made  during  the second
25    preceding calendar month by the Department on behalf  of  the
26    county  and (ii) 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    county.  Within 10 days after receipt by the  Comptroller  of
30    the  disbursement  certification to the counties provided for
31    in this Section  to  be  given  to  the  Comptroller  by  the
32    Department,  the  Comptroller  shall  cause  the orders to be
33    drawn  for  the  respective  amounts   in   accordance   with
34    directions contained in the certification.
 
SB1310 Engrossed            -86-               LRB9110257SMdv
 1        In addition to the disbursement required by the preceding
 2    paragraph,  an allocation shall be made in March of each year
 3    to  each  county  that  received  more   than   $500,000   in
 4    disbursements  under the preceding paragraph in the preceding
 5    calendar year.  The allocation shall be in an amount equal to
 6    the average monthly distribution made  to  each  such  county
 7    under  the  preceding paragraph during the preceding calendar
 8    year (excluding the  2  months  of  highest  receipts).   The
 9    distribution  made  in  March  of each year subsequent to the
10    year in  which  an  allocation  was  made  pursuant  to  this
11    paragraph and the preceding paragraph shall be reduced by the
12    amount  allocated  and  disbursed under this paragraph in the
13    preceding calendar year.  The Department  shall  prepare  and
14    certify  to  the Comptroller for disbursement the allocations
15    made in accordance with this paragraph.
16        (d)  For   the   purpose   of   determining   the   local
17    governmental unit whose tax is applicable, a retail sale by a
18    producer of coal or another mineral mined in  Illinois  is  a
19    sale  at  retail at the place where the coal or other mineral
20    mined  in  Illinois  is  extracted  from  the  earth.    This
21    paragraph  does  not apply to coal or another mineral when it
22    is delivered or shipped by the seller to the purchaser  at  a
23    point  outside  Illinois so that the sale is exempt under the
24    United States Constitution as a sale in interstate or foreign
25    commerce.
26        (e)  Nothing  in  this  Section  shall  be  construed  to
27    authorize a county to impose a  tax  upon  the  privilege  of
28    engaging  in  any business that under the Constitution of the
29    United States may not be made the subject of taxation by this
30    State.
31        (e-5)  If a county imposes a tax under this Section,  the
32    county board may, by ordinance, discontinue or lower the rate
33    of  the  tax.   If  the  county  board lowers the tax rate or
34    discontinues the tax, a referendum must be held in accordance
 
SB1310 Engrossed            -87-               LRB9110257SMdv
 1    with subsection (a) of this Section in order to increase  the
 2    rate of the tax or to reimpose the discontinued tax.
 3        (f)  Beginning April 1, 1998, the results of any election
 4    authorizing  a proposition to impose a tax under this Section
 5    or effecting a change in the rate of tax,  or  any  ordinance
 6    lowering   the  rate  or  discontinuing  the  tax,  shall  be
 7    certified by the county clerk and  filed  with  the  Illinois
 8    Department  of  Revenue either (i) on or before the first day
 9    of  April,  whereupon  the  Department   shall   proceed   to
10    administer  and  enforce  the tax as of the first day of July
11    next following the filing; or (ii) on or before the first day
12    of  October,  whereupon  the  Department  shall  proceed   to
13    administer and enforce the tax as of the first day of January
14    next following the filing.
15        (g)  When certifying the amount of a monthly disbursement
16    to a county under this Section, the Department shall increase
17    or  decrease the amounts by an amount necessary to offset any
18    miscalculation of previous disbursements.  The offset  amount
19    shall be the amount erroneously disbursed within the previous
20    6 months from the time a miscalculation is discovered.
21        (h)  This  Section  may  be  cited as the "Special County
22    Occupation Tax For Public Safety Law".
23        (i)  For  purposes  of  this  Section,  "public   safety"
24    includes  but  is  not  limited  to  fire  fighting,  police,
25    medical, ambulance, or other emergency services.
26        (j)  This  amendatory Act of the 91st General Assembly is
27    a denial and limitation of home  rule  powers  to  tax  under
28    subsection  (g)  of  Section 6 of Article VII of the Illinois
29    Constitution.
30    (Source: P.A.  89-107,  eff.  1-1-96;  89-718,  eff.  3-7-97;
31    90-190,  eff.  7-24-97;  90-267,  eff.  7-30-97; 90-552, eff.
32    12-12-97;  90-562,  eff.  12-16-97;  90-655,  eff.   7-30-98;
33    90-689, eff. 7-31-98.)
 
SB1310 Engrossed            -88-               LRB9110257SMdv
 1        (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
 2        Sec.  5-1007.  Home  Rule  County  Service Occupation Tax
 3    Law. The corporate authorities of  a  home  rule  county  may
 4    impose a tax upon all persons engaged, in such county, in the
 5    business  of  making sales of service at the same rate of tax
 6    imposed pursuant to Section 5-1006 of the  selling  price  of
 7    all tangible personal property transferred by such servicemen
 8    either  in  the  form of tangible personal property or in the
 9    form of real estate as an incident to a sale of  service.  If
10    imposed,  such  tax shall only be imposed in 1/4% increments.
11    On and after September 1, 1991, this additional tax  may  not
12    be  imposed  on the sales of food for human consumption which
13    is to be consumed off the premises where it  is  sold  (other
14    than alcoholic beverages, soft drinks and food which has been
15    prepared  for  immediate  consumption)  and  prescription and
16    nonprescription  medicines,  drugs,  medical  appliances  and
17    insulin, urine testing materials, syringes and  needles  used
18    by  diabetics. The tax imposed by a home rule county pursuant
19    to this Section and all civil penalties that may be  assessed
20    as an incident thereof shall be collected and enforced by the
21    State  Department of Revenue. The certificate of registration
22    which is issued by the Department to  a  retailer  under  the
23    Retailers' Occupation Tax Act or under the Service Occupation
24    Tax  Act shall permit such registrant to engage in a business
25    which is taxable under any ordinance  or  resolution  enacted
26    pursuant  to this Section without registering separately with
27    the Department under such ordinance or  resolution  or  under
28    this  Section.   The  Department  shall  have  full  power to
29    administer and enforce this Section; to collect all taxes and
30    penalties due hereunder; to dispose of taxes and penalties so
31    collected  in  the  manner  hereinafter  provided;   and   to
32    determine  all  rights to credit memoranda arising on account
33    of the erroneous payment of tax or penalty hereunder.  In the
34    administration of, and  compliance  with,  this  Section  the
 
SB1310 Engrossed            -89-               LRB9110257SMdv
 1    Department  and persons who are subject to this Section shall
 2    have  the  same  rights,  remedies,  privileges,  immunities,
 3    powers and duties, and be subject  to  the  same  conditions,
 4    restrictions,   limitations,  penalties  and  definitions  of
 5    terms, and  employ  the  same  modes  of  procedure,  as  are
 6    prescribed  in  Sections  1a-1,  2,  2a,  3  through 3-50 (in
 7    respect to all provisions therein other than the  State  rate
 8    of  tax),  4 (except that the reference to the State shall be
 9    to the taxing county), 5, 7, 8 (except that the  jurisdiction
10    to  which  the tax shall be a debt to the extent indicated in
11    that Section 8 shall be the taxing county), 9 (except  as  to
12    the  disposition of taxes and penalties collected, and except
13    that the returned merchandise credit for this county tax  may
14    not  be  taken against any State tax), 10, 11, 12 (except the
15    reference therein to Section 2b of the Retailers'  Occupation
16    Tax  Act),  13  (except that any reference to the State shall
17    mean the taxing county), the first paragraph of  Section  15,
18    16,  17,  18, 19 and 20 of the Service Occupation Tax Act and
19    Section 3-7 of the Uniform Penalty and Interest Act, as fully
20    as if those provisions were set forth herein.
21        No tax may be imposed by a home rule county  pursuant  to
22    this  Section  unless  such  county also imposes a tax at the
23    same rate pursuant to Section 5-1006.
24        A home rule county that has not imposed a tax under  this
25    Section  on the selling price of motor fuel or gasohol before
26    the effective date of this amendatory Act of the 91st General
27    Assembly shall not impose such a tax on or after that date. A
28    home rule county that has imposed a tax under this Section on
29    the sale of motor fuel or gasohol before the  effective  date
30    of this amendatory Act of the 91st General Assembly shall not
31    increase  the rate of the tax on or after that date. If, as a
32    result of the provisions of this amendatory Act of  the  91st
33    General  Assembly,  the  rate  of  tax imposed on the sale of
34    motor fuel and gasohol by the Retailers' Occupation  Tax  Act
 
SB1310 Engrossed            -90-               LRB9110257SMdv
 1    returns to 6.25%, then the prohibition against imposing a tax
 2    on  the  sale  of  motor fuel and gasohol and the prohibition
 3    against an increase in the rate of any tax already imposed on
 4    the sale of motor fuel and gasohol are no longer  in  effect.
 5    This  amendatory Act of the 91st General Assembly is a denial
 6    and limitation of home rule powers to  tax  under  subsection
 7    (g) of Section 6 of Article VII of the Illinois Constitution.
 8        Persons  subject  to  any  tax  imposed  pursuant  to the
 9    authority granted in this Section  may  reimburse  themselves
10    for  their serviceman's tax liability hereunder by separately
11    stating such tax as an additional charge, which charge may be
12    stated in combination, in a single  amount,  with  State  tax
13    which  servicemen are authorized to collect under the Service
14    Use Tax Act,  pursuant  to  such  bracket  schedules  as  the
15    Department may prescribe.
16        Whenever  the  Department determines that a refund should
17    be made under this Section to a claimant instead  of  issuing
18    credit  memorandum,  the  Department  shall  notify the State
19    Comptroller, who shall cause the order to be  drawn  for  the
20    amount   specified,   and   to  the  person  named,  in  such
21    notification from the Department. Such refund shall  be  paid
22    by the State Treasurer out of the home rule county retailers'
23    occupation tax fund.
24        The  Department  shall  forthwith  pay  over to the State
25    Treasurer, ex-officio, as trustee, all  taxes  and  penalties
26    collected  hereunder.  On  or  before  the  25th  day of each
27    calendar month, the Department shall prepare and  certify  to
28    the  Comptroller  the disbursement of stated sums of money to
29    named counties, the counties to be those from which suppliers
30    and servicemen have paid taxes or penalties hereunder to  the
31    Department  during  the second preceding calendar month.  The
32    amount to be paid to each county shall  be  the  amount  (not
33    including  credit  memoranda)  collected hereunder during the
34    second preceding calendar month by the  Department,  and  not
 
SB1310 Engrossed            -91-               LRB9110257SMdv
 1    including  an  amount  equal  to  the  amount of refunds made
 2    during the second preceding calendar month by the  Department
 3    on  behalf  of such county.  Within 10 days after receipt, by
 4    the Comptroller, of the  disbursement  certification  to  the
 5    counties  provided  for  in  this  Section to be given to the
 6    Comptroller by the Department, the  Comptroller  shall  cause
 7    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, an allocation shall be made in each year  to  each
12    county  which  received  more  than $500,000 in disbursements
13    under the preceding paragraph in the preceding calendar year.
14    The allocation shall be in an amount  equal  to  the  average
15    monthly  distribution  made  to  each  such  county under the
16    preceding  paragraph  during  the  preceding  calendar   year
17    (excluding   the   2   months   of  highest  receipts).   The
18    distribution made in March of each  year  subsequent  to  the
19    year  in  which  an  allocation  was  made  pursuant  to this
20    paragraph and the preceding paragraph shall be reduced by the
21    amount allocated and disbursed under this  paragraph  in  the
22    preceding  calendar  year.   The Department shall prepare and
23    certify to the Comptroller for disbursement  the  allocations
24    made in accordance with this paragraph.
25        Nothing in this Section shall be construed to authorize a
26    county  to impose a tax upon the privilege of engaging in any
27    business which under the Constitution of  the  United  States
28    may not be made the subject of taxation by this State.
29        An  ordinance  or  resolution imposing or discontinuing a
30    tax hereunder or effecting a change in the rate thereof shall
31    be adopted and  a  certified  copy  thereof  filed  with  the
32    Department  on or before the first day of June, whereupon the
33    Department shall  proceed  to  administer  and  enforce  this
34    Section  as of the first day of September next following such
 
SB1310 Engrossed            -92-               LRB9110257SMdv
 1    adoption and filing. Beginning January 1, 1992, an  ordinance
 2    or  resolution imposing or discontinuing the tax hereunder or
 3    effecting a change in the rate thereof shall be adopted and a
 4    certified copy thereof filed with the Department on or before
 5    the first day of July, whereupon the Department shall proceed
 6    to administer and enforce this Section as of the first day of
 7    October next following such adoption  and  filing.  Beginning
 8    January  1,  1993,  an  ordinance  or  resolution imposing or
 9    discontinuing the tax hereunder or effecting a change in  the
10    rate  thereof  shall  be adopted and a certified copy thereof
11    filed with the Department on  or  before  the  first  day  of
12    October, whereupon the Department shall proceed to administer
13    and  enforce this Section as of the first day of January next
14    following such adoption and filing.  Beginning April 1, 1998,
15    an ordinance or resolution imposing or discontinuing the  tax
16    hereunder  or  effecting  a  change in the rate thereof shall
17    either (i) be adopted and a certified copy thereof filed with
18    the Department on or before the first day of April, whereupon
19    the Department shall proceed to administer and  enforce  this
20    Section  as  of  the  first  day  of  July next following the
21    adoption and filing; or (ii) be adopted and a certified  copy
22    thereof  filed with the Department on or before the first day
23    of  October,  whereupon  the  Department  shall  proceed   to
24    administer  and  enforce  this Section as of the first day of
25    January next following the adoption and filing.
26        This Section shall be known and may be cited as the  Home
27    Rule County Service Occupation Tax Law.
28    (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)

29        (55 ILCS 5/5-1035.1) (from Ch. 34, par. 5-1035.1)
30        Sec.  5-1035.1.   County  Motor  Fuel Tax Law. The county
31    board of the counties of DuPage, Kane and McHenry may, by  an
32    ordinance  or  resolution adopted by an affirmative vote of a
33    majority of the members elected or appointed  to  the  county
 
SB1310 Engrossed            -93-               LRB9110257SMdv
 1    board, impose a tax upon all persons engaged in the county in
 2    the  business  of  selling  motor  fuel,  as now or hereafter
 3    defined in  the  Motor  Fuel  Tax  Law,  at  retail  for  the
 4    operation  of  motor vehicles upon public highways or for the
 5    operation of recreational  watercraft  upon  waterways.  Kane
 6    County  may  exempt diesel fuel from the tax imposed pursuant
 7    to this Section.   The  tax  may  be  imposed,  in  half-cent
 8    increments,  at  a rate  not  exceeding 4 cents per gallon of
 9    motor fuel sold at retail within the county for  the  purpose
10    of  use or consumption and not for the purpose of resale. The
11    proceeds from the tax shall be used by the county solely  for
12    the  purpose  of operating, constructing and improving public
13    highways and  waterways,  and  acquiring  real  property  and
14    right-of-ways  for  public  highways and waterways within the
15    county imposing the tax.
16        A county that has not imposed a tax  under  this  Section
17    before  the effective date of this amendatory Act of the 91st
18    General Assembly shall not impose such a tax on or after that
19    date.  A county that has imposed a  tax  under  this  Section
20    before  the effective date of this amendatory Act of the 91st
21    General Assembly shall not increase the rate of the tax on or
22    after that date. If, as a result of the  provisions  of  this
23    amendatory  Act of the 91st General Assembly, the rate of tax
24    imposed on  the  sale  of  motor  fuel  and  gasohol  by  the
25    Retailers'  Occupation  Tax  Act  returns  to 6.25%, then the
26    prohibition against imposing a tax on the sale of motor  fuel
27    and  gasohol  and  the prohibition against an increase in the
28    rate of any tax already imposed on the sale of motor fuel and
29    gasohol are no longer in effect.
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
34    under the Retailers' Occupation Tax Act, as now or  hereafter
 
SB1310 Engrossed            -94-               LRB9110257SMdv
 1    amended,  insofar  as  may be practicable; except that in the
 2    event of a conflict with the provisions of this Section, this
 3    Section shall control. The Department of Revenue  shall  have
 4    full  power:  to  administer  and  enforce  this  Section; to
 5    collect all taxes and penalties due hereunder; to dispose  of
 6    taxes  and  penalties  so collected in the manner hereinafter
 7    provided; and to determine all  rights  to  credit  memoranda
 8    arising on account of the erroneous payment of tax or penalty
 9    hereunder.
10        Whenever the Department determines that a refund shall be
11    made  under  this  Section to a claimant instead of issuing a
12    credit memorandum, the  Department  shall  notify  the  State
13    Comptroller,  who  shall  cause the order to be drawn for the
14    amount  specified,  and  to  the   person   named,   in   the
15    notification from the Department. The refund shall be paid by
16    the  State  Treasurer out of the County Option Motor Fuel Tax
17    Fund.
18        The Department shall forthwith  pay  over  to  the  State
19    Treasurer,  ex-officio,  as  trustee, all taxes and penalties
20    collected hereunder, which shall be deposited into the County
21    Option Motor Fuel Tax Fund,  a  special  fund  in  the  State
22    Treasury  which  is hereby created. On or before the 25th day
23    of each calendar month,  the  Department  shall  prepare  and
24    certify  to  the State Comptroller the disbursement of stated
25    sums of money to named counties for which taxpayers have paid
26    taxes or penalties hereunder to  the  Department  during  the
27    second  preceding  calendar  month.  The amount to be paid to
28    each  county  shall  be  the  amount  (not  including  credit
29    memoranda) collected  hereunder  from  retailers  within  the
30    county  during  the  second  preceding  calendar month by the
31    Department, but not including an amount equal to  the  amount
32    of refunds made during the second preceding calendar month by
33    the  Department  on  behalf  of  the  county; less the amount
34    expended during the second preceding month by the  Department
 
SB1310 Engrossed            -95-               LRB9110257SMdv
 1    pursuant  to  appropriation from the County Option Motor Fuel
 2    Tax Fund for  the  administration  and  enforcement  of  this
 3    Section,  which  appropriation  shall not exceed $200,000 for
 4    fiscal year 1990 and, for each  year  thereafter,  shall  not
 5    exceed  2%  of  the  amount  deposited into the County Option
 6    Motor Fuel Tax Fund during the preceding fiscal year.
 7        Nothing in this Section shall be construed to authorize a
 8    county to impose a tax upon the privilege of engaging in  any
 9    business  which  under  the Constitution of the United States
10    may not be made the subject of taxation by this State.
11        An ordinance or resolution imposing a  tax  hereunder  or
12    effecting  a change in the rate thereof shall be effective on
13    the first day of the second calendar month next following the
14    month in which the ordinance or resolution is adopted  and  a
15    certified  copy  thereof  is  filed  with  the  Department of
16    Revenue,  whereupon the Department of Revenue  shall  proceed
17    to  administer  and  enforce  this  Section  on behalf of the
18    county  as  of  the  effective  date  of  the  ordinance   or
19    resolution.  Upon a change in rate of a tax levied hereunder,
20    or upon the discontinuance of the tax, the  county  board  of
21    the  county  shall,  on  or  not  later than 5 days after the
22    effective date of the ordinance or  resolution  discontinuing
23    the  tax  or  effecting  a  change  in  rate, transmit to the
24    Department of Revenue a certified copy of  the  ordinance  or
25    resolution effecting the change or discontinuance.
26        This  Section  shall  be  known  and  may be cited as the
27    County Motor Fuel Tax Law.
28    (Source: P.A. 86-1028; 87-289.)

29        Section 30.  The Illinois Municipal Code  is  amended  by
30    changing  Sections  8-11-1,  8-11-1.1,  8-11-5,  8-11-6,  and
31    8-11-15 as follows:

32        (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
 
SB1310 Engrossed            -96-               LRB9110257SMdv
 1        Sec.  8-11-1.  Home  Rule Municipal Retailers' Occupation
 2    Tax  Act.   The  corporate  authorities  of   a   home   rule
 3    municipality may impose a tax upon all persons engaged in the
 4    business of selling tangible personal property, other than an
 5    item  of tangible personal property titled or registered with
 6    an agency of  this  State's  government,  at  retail  in  the
 7    municipality  on  the gross receipts from these sales made in
 8    the course of such business.  If imposed, the tax shall  only
 9    be  imposed  in  1/4%  increments.  On and after September 1,
10    1991, this additional tax may not be imposed on the sales  of
11    food  for  human  consumption  that is to be consumed off the
12    premises where it is sold (other  than  alcoholic  beverages,
13    soft  drinks  and  food  that has been prepared for immediate
14    consumption) and prescription and nonprescription  medicines,
15    drugs,   medical   appliances   and  insulin,  urine  testing
16    materials, syringes and needles used by  diabetics.  The  tax
17    imposed  by  a  home rule municipality under this Section and
18    all civil penalties that may be assessed as  an  incident  of
19    the  tax  shall  be  collected  and  enforced  by  the  State
20    Department  of Revenue.  The certificate of registration that
21    is  issued  by  the  Department  to  a  retailer  under   the
22    Retailers'  Occupation  Tax  Act shall permit the retailer to
23    engage in a business that is taxable under any  ordinance  or
24    resolution   enacted   pursuant   to   this  Section  without
25    registering  separately  with  the  Department   under   such
26    ordinance   or   resolution   or  under  this  Section.   The
27    Department shall have full power to  administer  and  enforce
28    this   Section;  to  collect  all  taxes  and  penalties  due
29    hereunder; to dispose of taxes and penalties so collected  in
30    the  manner hereinafter provided; and to determine all rights
31    to credit memoranda  arising  on  account  of  the  erroneous
32    payment  of  tax or penalty hereunder.  In the administration
33    of, and compliance with,  this  Section  the  Department  and
34    persons  who  are subject to this Section shall have the same
 
SB1310 Engrossed            -97-               LRB9110257SMdv
 1    rights, remedies, privileges, immunities, powers and  duties,
 2    and   be   subject  to  the  same  conditions,  restrictions,
 3    limitations, penalties and definitions of terms,  and  employ
 4    the same modes of procedure, as are prescribed in Sections 1,
 5    1a,  1d,  1e,  1f,  1i,  1j,  1k,  1m, 1n, 2 through 2-65 (in
 6    respect to all provisions therein other than the  State  rate
 7    of  tax),  2c,  3  (except as to the disposition of taxes and
 8    penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,  5g,  5h,
 9    5i,  5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of
10    the Retailers' Occupation Tax Act  and  Section  3-7  of  the
11    Uniform  Penalty  and  Interest  Act,  as  fully  as if those
12    provisions were set forth herein.
13        No tax may be imposed by a home rule  municipality  under
14    this  Section  unless  the municipality also imposes a tax at
15    the same rate under Section 8-11-5 of this Act.
16        A home rule municipality that has not imposed a tax under
17    this Section on the sale of motor fuel or gasohol before  the
18    effective  date  of  this  amendatory Act of the 91st General
19    Assembly shall not impose such a tax on or after that date. A
20    home rule municipality that has  imposed  a  tax  under  this
21    Section  on  the  sale  of  motor  fuel or gasohol before the
22    effective date of this amendatory Act  of  the  91st  General
23    Assembly  shall  not increase the rate of the tax on or after
24    that date.  If,  as  a  result  of  the  provisions  of  this
25    amendatory  Act of the 91st General Assembly, the rate of tax
26    imposed on  the  sale  of  motor  fuel  and  gasohol  by  the
27    Retailers'  Occupation  Tax  Act  returns  to 6.25%, then the
28    prohibition against imposing a tax on the sale of motor  fuel
29    and  gasohol  and  the prohibition against an increase in the
30    rate of any tax already imposed on the sale of motor fuel and
31    gasohol are no longer in effect. This amendatory Act  of  the
32    91st General Assembly is a denial and limitation of home rule
33    powers  to  tax  under subsection (g) of Section 6 of Article
34    VII of the Illinois Constitution.
 
SB1310 Engrossed            -98-               LRB9110257SMdv
 1        Persons subject to any tax imposed  under  the  authority
 2    granted  in  this  Section may reimburse themselves for their
 3    seller's tax liability hereunder by separately  stating  that
 4    tax  as  an  additional charge, which charge may be stated in
 5    combination, in a single amount, with State tax which sellers
 6    are required to collect under the Use Tax  Act,  pursuant  to
 7    such bracket schedules as the Department may prescribe.
 8        Whenever  the  Department determines that a refund should
 9    be made under this Section to a claimant instead of issuing a
10    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  notification
13    from  the  Department.  The refund shall be paid by the State
14    Treasurer  out  of  the  home   rule   municipal   retailers'
15    occupation tax fund.
16        The  Department  shall  immediately pay over to the State
17    Treasurer, ex officio, as trustee, all  taxes  and  penalties
18    collected  hereunder.   On  or  before  the  25th day of each
19    calendar month, the Department shall prepare and  certify  to
20    the  Comptroller  the disbursement of stated sums of money to
21    named municipalities, the municipalities  to  be  those  from
22    which retailers have paid taxes or penalties hereunder to the
23    Department  during  the  second preceding calendar month. The
24    amount to be paid to each municipality shall  be  the  amount
25    (not  including  credit memoranda) collected hereunder during
26    the second preceding calendar month by the Department plus an
27    amount the Department determines is necessary to  offset  any
28    amounts  that  were  erroneously  paid  to a different taxing
29    body, and not including an amount  equal  to  the  amount  of
30    refunds  made  during  the second preceding calendar month by
31    the Department  on  behalf  of  such  municipality,  and  not
32    including  any  amount  that  the  Department  determines  is
33    necessary  to  offset  any  amounts  that  were  payable to a
34    different taxing  body  but  were  erroneously  paid  to  the
 
SB1310 Engrossed            -99-               LRB9110257SMdv
 1    municipality. Within 10 days after receipt by the Comptroller
 2    of  the  disbursement  certification  to  the  municipalities
 3    provided  for  in this Section to be given to the Comptroller
 4    by the Department, the Comptroller shall cause the orders  to
 5    be  drawn  for  the respective amounts in accordance with the
 6    directions contained in the certification.
 7        In addition to the disbursement required by the preceding
 8    paragraph  and  in  order  to  mitigate  delays   caused   by
 9    distribution  procedures,  an allocation shall, if requested,
10    be made within  10  days  after  January  14,  1991,  and  in
11    November   of   1991   and  each  year  thereafter,  to  each
12    municipality that received  more  than  $500,000  during  the
13    preceding  fiscal  year,  (July  1  through  June 30) whether
14    collected by the municipality or disbursed by the  Department
15    as required by this Section. Within 10 days after January 14,
16    1991,   participating   municipalities   shall   notify   the
17    Department  in  writing  of  their intent to participate.  In
18    addition,  for  the   initial   distribution,   participating
19    municipalities  shall  certify  to the Department the amounts
20    collected by the municipality for each month under  its  home
21    rule  occupation and service occupation tax during the period
22    July 1, 1989 through June 30, 1990.  The allocation within 10
23    days after January 14, 1991, shall be in an amount  equal  to
24    the  monthly average of these amounts, excluding the 2 months
25    of highest receipts. The monthly average for  the  period  of
26    July  1,  1990  through  June  30, 1991 will be determined as
27    follows:  the amounts collected by the municipality under its
28    home rule occupation and service occupation  tax  during  the
29    period  of  July  1,  1990  through  September 30, 1990, plus
30    amounts  collected  by  the  Department  and  paid  to   such
31    municipality through June 30, 1991, excluding the 2 months of
32    highest  receipts.   The  monthly average for each subsequent
33    period of July 1 through June 30 shall be an amount equal  to
34    the monthly distribution made to each such municipality under
 
SB1310 Engrossed            -100-              LRB9110257SMdv
 1    the  preceding  paragraph during this period, excluding the 2
 2    months  of  highest  receipts.   The  distribution  made   in
 3    November  1991  and each year thereafter under this paragraph
 4    and the preceding paragraph shall be reduced  by  the  amount
 5    allocated and disbursed under this paragraph in the preceding
 6    period  of  July  1  through  June  30.  The Department shall
 7    prepare and certify to the Comptroller for  disbursement  the
 8    allocations made in accordance with this paragraph.
 9        For  the  purpose  of  determining the local governmental
10    unit whose tax is applicable, a retail sale by a producer  of
11    coal  or  other mineral mined in Illinois is a sale at retail
12    at the place  where  the  coal  or  other  mineral  mined  in
13    Illinois  is  extracted  from the earth.  This paragraph does
14    not apply to coal or other mineral when it  is  delivered  or
15    shipped  by  the  seller  to the purchaser at a point outside
16    Illinois so that the sale is exempt under the  United  States
17    Constitution as a sale in interstate or foreign commerce.
18        Nothing in this Section shall be construed to authorize a
19    municipality  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 this State.
22        An  ordinance  or  resolution imposing or discontinuing a
23    tax hereunder or effecting a change in the rate thereof shall
24    be adopted and  a  certified  copy  thereof  filed  with  the
25    Department  on or before the first day of June, whereupon the
26    Department shall  proceed  to  administer  and  enforce  this
27    Section  as  of the first day of September next following the
28    adoption and filing. Beginning January 1, 1992, an  ordinance
29    or  resolution imposing or discontinuing the tax hereunder or
30    effecting a change in the rate thereof shall be adopted and a
31    certified copy thereof filed with the Department on or before
32    the first day of July, whereupon the Department shall proceed
33    to administer and enforce this Section as of the first day of
34    October next following such adoption  and  filing.  Beginning
 
SB1310 Engrossed            -101-              LRB9110257SMdv
 1    January  1,  1993,  an  ordinance  or  resolution imposing or
 2    discontinuing the tax hereunder or effecting a change in  the
 3    rate  thereof  shall  be adopted and a certified copy thereof
 4    filed with the Department on  or  before  the  first  day  of
 5    October, whereupon the Department shall proceed to administer
 6    and  enforce this Section as of the first day of January next
 7    following the adoption and filing.  However,  a  municipality
 8    located  in a county with a population in excess of 3,000,000
 9    that elected to become  a  home  rule  unit  at  the  general
10    primary election in 1994 may adopt an ordinance or resolution
11    imposing the tax under this Section and file a certified copy
12    of  the  ordinance  or  resolution  with the Department on or
13    before July 1, 1994. The Department  shall  then  proceed  to
14    administer  and  enforce  this Section as of October 1, 1994.
15    Beginning April 1, 1998, an ordinance or resolution  imposing
16    or  discontinuing  the tax hereunder or effecting a change in
17    the rate thereof shall either (i) be adopted and a  certified
18    copy thereof filed with the Department on or before the first
19    day  of  April,  whereupon  the  Department  shall proceed to
20    administer and enforce this Section as of the  first  day  of
21    July  next  following  the  adoption  and  filing; or (ii) be
22    adopted  and  a  certified  copy  thereof  filed   with   the
23    Department  on  or before the first day of October, whereupon
24    the Department shall proceed to administer and  enforce  this
25    Section  as  of  the  first day of January next following the
26    adoption and filing.
27        When certifying the amount of a monthly disbursement to a
28    municipality  under  this  Section,  the   Department   shall
29    increase  or  decrease  the  amount by an amount necessary to
30    offset  any  misallocation  of  previous  disbursements.  The
31    offset amount  shall  be  the  amount  erroneously  disbursed
32    within the previous 6 months from the time a misallocation is
33    discovered.
34        Any   unobligated  balance  remaining  in  the  Municipal
 
SB1310 Engrossed            -102-              LRB9110257SMdv
 1    Retailers' Occupation Tax Fund on December  31,  1989,  which
 2    fund was abolished by Public Act 85-1135, and all receipts of
 3    municipal  tax  as  a  result  of audits of liability periods
 4    prior to January 1,  1990,  shall  be  paid  into  the  Local
 5    Government  Tax  Fund  for  distribution  as provided by this
 6    Section prior to the enactment of  Public  Act  85-1135.  All
 7    receipts  of  municipal  tax as a result of an assessment not
 8    arising from an audit, for liability periods prior to January
 9    1, 1990, shall be paid into the Local Government Tax Fund for
10    distribution before July 1, 1990, as provided by this Section
11    prior to the enactment of Public  Act  85-1135;  and  on  and
12    after July 1, 1990, all such receipts shall be distributed as
13    provided in Section 6z-18 of the State Finance Act.
14        As  used  in this Section, "municipal" and "municipality"
15    means a city, village  or  incorporated  town,  including  an
16    incorporated town that has superseded a civil township.
17        This  Section shall be known and may be cited as the Home
18    Rule Municipal Retailers' Occupation Tax Act.
19    (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)

20        (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
21        Sec. 8-11-1.1.  Non-home  rule  municipalities;  use  and
22    occupation imposition of taxes.
23        (a)  The   corporate   authorities  of  a  non-home  rule
24    municipality may,  upon  approval  of  the  electors  of  the
25    municipality  pursuant  to  subsection  (b)  of this Section,
26    impose  by  ordinance  or  resolution  the  1/2  of  1%   tax
27    authorized  in  Sections  8-11-1.3,  8-11-1.4 and 8-11-1.5 of
28    this Act.
29        A municipality that has not imposed a tax on  motor  fuel
30    or  gasohol  authorized  in  Sections 8-11-1.3, 8-11-1.4, and
31    8-11-1.5 before the effective date of this amendatory Act  of
32    the  91st  General Assembly shall not impose such a tax on or
33    after that date. A municipality that has  imposed  a  tax  on
 
SB1310 Engrossed            -103-              LRB9110257SMdv
 1    motor  fuel  or  gasohol  authorized  in  Sections  8-11-1.3,
 2    8-11-1.4,  and  8-11-1.5  before  the  effective date of this
 3    amendatory  Act  of  the  91st  General  Assembly  shall  not
 4    increase the rate of the tax on or after that date. If, as  a
 5    result  of  the provisions of this amendatory Act of the 91st
 6    General Assembly, the rate of tax  imposed  on  the  sale  of
 7    motor  fuel  and gasohol by the Retailers' Occupation Tax Act
 8    returns to 6.25%, then the prohibition against imposing a tax
 9    on the sale of motor fuel and  gasohol  and  the  prohibition
10    against an increase in the rate of any tax already imposed on
11    the sale of motor fuel and gasohol are no longer in effect.
12        (b)  The corporate authorities of the municipality may by
13    ordinance  or  resolution  call  for  the  submission  to the
14    electors of the municipality  the  question  of  whether  the
15    municipality  shall  impose such tax.  Such question shall be
16    certified by the municipal clerk to the election authority in
17    accordance with Section 28-5 of the Election Code  and  shall
18    be  in a form in accordance with Section 16-7 of the Election
19    Code.
20        If a majority of the electors in the municipality  voting
21    upon  the question vote in the affirmative, such tax shall be
22    imposed.
23        An ordinance or resolution imposing the  1/2  of  1%  tax
24    hereunder  or  discontinuing  the same shall be adopted and a
25    certified copy thereof, together with  a  certification  that
26    the  ordinance  or resolution received referendum approval in
27    the case of the  imposition  of  such  tax,  filed  with  the
28    Department  of  Revenue,  on or before the first day of June,
29    whereupon the Department  shall  proceed  to  administer  and
30    enforce  the additional tax or to discontinue the tax, as the
31    case may be, as of the first day of September 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
 
SB1310 Engrossed            -104-              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.  A  non-home
11    rule  municipality  may file a certified copy of an ordinance
12    or resolution, with a certification  that  the  ordinance  or
13    resolution  received  referendum  approval in the case of the
14    imposition of the tax, with the  Department  of  Revenue,  as
15    required under this Section, only after October 2, 2000.
16    (Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.)

17        (65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
18        Sec.  8-11-5.  Home Rule Municipal Service Occupation Tax
19    Act.  The corporate authorities of a home  rule  municipality
20    may   impose   a  tax  upon  all  persons  engaged,  in  such
21    municipality, in the business of making sales of  service  at
22    the  same  rate of tax imposed pursuant to Section 8-11-1, of
23    the  selling  price  of  all   tangible   personal   property
24    transferred by such servicemen either in the form of tangible
25    personal  property  or  in  the  form  of  real  estate as an
26    incident to a sale of service.  If imposed,  such  tax  shall
27    only be imposed in 1/4% increments. On and after September 1,
28    1991,  this additional tax may not be imposed on the sales of
29    food for human consumption which is to be  consumed  off  the
30    premises  where  it  is sold (other than alcoholic beverages,
31    soft drinks and food which has been  prepared  for  immediate
32    consumption)  and prescription and nonprescription medicines,
33    drugs,  medical  appliances  and   insulin,   urine   testing
 
SB1310 Engrossed            -105-              LRB9110257SMdv
 1    materials,  syringes  and  needles used by diabetics. The tax
 2    imposed by a home rule municipality pursuant to this  Section
 3    and  all  civil penalties that may be assessed as an incident
 4    thereof  shall  be  collected  and  enforced  by  the   State
 5    Department  of Revenue. The certificate of registration which
 6    is  issued  by  the  Department  to  a  retailer  under   the
 7    Retailers' Occupation Tax Act or under the Service Occupation
 8    Tax  Act shall permit such registrant to engage in a business
 9    which is taxable under any ordinance  or  resolution  enacted
10    pursuant  to this Section without registering separately with
11    the Department under such ordinance or  resolution  or  under
12    this  Section.   The  Department  shall  have  full  power to
13    administer and enforce this Section; to collect all taxes and
14    penalties due hereunder; to dispose of taxes and penalties so
15    collected  in  the  manner  hereinafter  provided,   and   to
16    determine  all  rights to credit memoranda arising on account
17    of the erroneous payment of tax or penalty hereunder. In  the
18    administration  of,  and  compliance  with,  this Section the
19    Department and persons who are subject to this Section  shall
20    have  the  same  rights,  remedies,  privileges,  immunities,
21    powers  and  duties,  and  be subject to the same conditions,
22    restrictions,  limitations,  penalties  and  definitions   of
23    terms,  and  employ  the  same  modes  of  procedure,  as are
24    prescribed in Sections  1a-1,  2,  2a,  3  through  3-50  (in
25    respect  to  all provisions therein other than the State rate
26    of tax), 4 (except that the reference to the State  shall  be
27    to  the  taxing  municipality),  5,  7,  8  (except  that the
28    jurisdiction to which the tax shall be a debt to  the  extent
29    indicated   in   that   Section   8   shall   be  the  taxing
30    municipality), 9 (except as to the disposition of  taxes  and
31    penalties collected, and except that the returned merchandise
32    credit  for  this  municipal tax may not be taken against any
33    State tax), 10, 11,  12  (except  the  reference  therein  to
34    Section  2b of the Retailers' Occupation Tax Act), 13 (except
 
SB1310 Engrossed            -106-              LRB9110257SMdv
 1    that any  reference  to  the  State  shall  mean  the  taxing
 2    municipality),  the  first  paragraph  of  Section 15, 16, 17
 3    (except that credit memoranda issued  hereunder  may  not  be
 4    used  to discharge any State tax liability), 18, 19 and 20 of
 5    the Service Occupation Tax Act and Section 3-7 of the Uniform
 6    Penalty and Interest Act, as fully  as  if  those  provisions
 7    were set forth herein.
 8        No  tax  may  be  imposed  by  a  home  rule municipality
 9    pursuant  to  this  Section  unless  such  municipality  also
10    imposes a tax at the same rate pursuant to Section 8-11-1  of
11    this Act.
12        A home rule municipality that has not imposed a tax under
13    this  Section  on  the selling price of motor fuel or gasohol
14    before the effective date of this amendatory Act of the  91st
15    General Assembly shall not impose such a tax on or after that
16    date.  A  home rule municipality that has imposed a tax under
17    this Section on the selling price of motor  fuel  or  gasohol
18    before  the effective date of this amendatory Act of the 91st
19    General Assembly shall not increase the rate of the tax on or
20    after that date. If, as a result of the  provisions  of  this
21    amendatory  Act of the 91st General Assembly, the rate of tax
22    imposed on  the  sale  of  motor  fuel  and  gasohol  by  the
23    Retailers'  Occupation  Tax  Act  returns  to 6.25%, then the
24    prohibition against imposing a tax on the sale of motor  fuel
25    and  gasohol  and  the prohibition against an increase in the
26    rate of any tax already imposed on the sale of motor fuel and
27    gasohol are no longer in effect. This amendatory Act  of  the
28    91st General Assembly is a denial and limitation of home rule
29    powers  to  tax  under subsection (g) of Section 6 of Article
30    VII of the Illinois Constitution.
31        Persons subject  to  any  tax  imposed  pursuant  to  the
32    authority  granted  in  this Section may reimburse themselves
33    for their serviceman's tax liability hereunder by  separately
34    stating such tax as an additional charge, which charge may be
 
SB1310 Engrossed            -107-              LRB9110257SMdv
 1    stated  in  combination,  in  a single amount, with State tax
 2    which servicemen are authorized to collect under the  Service
 3    Use  Tax  Act,  pursuant  to  such  bracket  schedules as the
 4    Department may prescribe.
 5        Whenever the Department determines that a  refund  should
 6    be  made  under this Section to a claimant instead of issuing
 7    credit memorandum, the  Department  shall  notify  the  State
 8    Comptroller,  who  shall  cause the order to be drawn for the
 9    amount  specified,  and  to  the  person   named,   in   such
10    notification  from the Department.  Such refund shall be paid
11    by the  State  Treasurer  out  of  the  home  rule  municipal
12    retailers' occupation tax fund.
13        The  Department  shall  forthwith  pay  over to the State
14    Treasurer, ex-officio, as trustee, all  taxes  and  penalties
15    collected  hereunder.  On  or  before  the  25th  day of each
16    calendar month, the Department shall prepare and  certify  to
17    the  Comptroller  the disbursement of stated sums of money to
18    named municipalities, the municipalities  to  be  those  from
19    which  suppliers  and servicemen have paid taxes or penalties
20    hereunder to  the  Department  during  the  second  preceding
21    calendar  month.  The  amount to be paid to each municipality
22    shall  be  the  amount  (not  including   credit   memoranda)
23    collected  hereunder  during  the  second  preceding calendar
24    month by the Department, and not including an amount equal to
25    the amount  of  refunds  made  during  the  second  preceding
26    calendar   month   by   the  Department  on  behalf  of  such
27    municipality.  Within  10  days   after   receipt,   by   the
28    Comptroller,   of   the  disbursement  certification  to  the
29    municipalities, provided for in this Section to be  given  to
30    the  Comptroller  by  the  Department,  the Comptroller shall
31    cause the orders to be drawn for the  respective  amounts  in
32    accordance    with   the   directions   contained   in   such
33    certification.
34        In addition to the disbursement required by the preceding
 
SB1310 Engrossed            -108-              LRB9110257SMdv
 1    paragraph  and  in  order  to  mitigate  delays   caused   by
 2    distribution  procedures,  an allocation shall, if requested,
 3    be made within  10  days  after  January  14,  1991,  and  in
 4    November   of   1991   and  each  year  thereafter,  to  each
 5    municipality that received  more  than  $500,000  during  the
 6    preceding  fiscal  year,  (July  1  through  June 30) whether
 7    collected by the municipality or disbursed by the  Department
 8    as required by this Section. Within 10 days after January 14,
 9    1991,   participating   municipalities   shall   notify   the
10    Department  in  writing  of  their intent to participate.  In
11    addition,  for  the   initial   distribution,   participating
12    municipalities  shall  certify  to the Department the amounts
13    collected by the municipality for each month under  its  home
14    rule  occupation and service occupation tax during the period
15    July 1, 1989 through June 30, 1990.  The allocation within 10
16    days after January 14, 1991, shall be in an amount  equal  to
17    the  monthly average of these amounts, excluding the 2 months
18    of highest receipts.  Monthly average for the period of  July
19    1,  1990 through June 30, 1991 will be determined as follows:
20    the amounts collected by the municipality under its home rule
21    occupation and service occupation tax during  the  period  of
22    July  1,  1990  through  September  30,  1990,  plus  amounts
23    collected  by  the  Department  and paid to such municipality
24    through June 30, 1991, excluding  the  2  months  of  highest
25    receipts.   The monthly average for each subsequent period of
26    July 1 through June 30  shall  be  an  amount  equal  to  the
27    monthly distribution made to each such municipality under the
28    preceding  paragraph  during  this  period,  excluding  the 2
29    months  of  highest  receipts.   The  distribution  made   in
30    November  1991  and each year thereafter under this paragraph
31    and the preceding paragraph shall be reduced  by  the  amount
32    allocated and disbursed under this paragraph in the preceding
33    period  of  July  1  through  June  30.  The Department shall
34    prepare and certify to the Comptroller for  disbursement  the
 
SB1310 Engrossed            -109-              LRB9110257SMdv
 1    allocations made in accordance with this paragraph.
 2        Nothing in this Section shall be construed to authorize a
 3    municipality  to  impose a tax upon the privilege of engaging
 4    in any business which under the constitution  of  the  United
 5    States may not be made the subject of taxation by this State.
 6        An  ordinance  or  resolution imposing or discontinuing a
 7    tax hereunder or effecting a change in the rate thereof shall
 8    be adopted and  a  certified  copy  thereof  filed  with  the
 9    Department  on or before the first day of June, whereupon the
10    Department shall  proceed  to  administer  and  enforce  this
11    Section  as of the first day of September next following such
12    adoption and filing.  Beginning January 1, 1992, an ordinance
13    or resolution imposing or discontinuing the tax hereunder  or
14    effecting a change in the rate thereof shall be adopted and a
15    certified copy thereof filed with the Department on or before
16    the first day of July, whereupon the Department shall proceed
17    to administer and enforce this Section as of the first day of
18    October  next  following  such adoption and filing. Beginning
19    January 1, 1993,  an  ordinance  or  resolution  imposing  or
20    discontinuing  the tax hereunder or effecting a change in the
21    rate thereof shall be adopted and a  certified  copy  thereof
22    filed  with  the  Department  on  or  before the first day of
23    October, whereupon the Department shall proceed to administer
24    and enforce this Section as of the first day of January  next
25    following  such  adoption and filing. However, a municipality
26    located in a county with a population in excess of  3,000,000
27    that  elected  to  become  a  home  rule  unit at the general
28    primary election in 1994 may adopt an ordinance or resolution
29    imposing the tax under this Section and file a certified copy
30    of the ordinance or resolution  with  the  Department  on  or
31    before  July  1,  1994.  The Department shall then proceed to
32    administer and enforce this Section as of  October  1,  1994.
33    Beginning  April 1, 1998, an ordinance or resolution imposing
34    or discontinuing the tax hereunder or effecting a  change  in
 
SB1310 Engrossed            -110-              LRB9110257SMdv
 1    the  rate thereof shall either (i) be adopted and a certified
 2    copy thereof filed with the Department on or before the first
 3    day of April,  whereupon  the  Department  shall  proceed  to
 4    administer  and  enforce  this Section as of the first day of
 5    July next following the  adoption  and  filing;  or  (ii)  be
 6    adopted   and   a  certified  copy  thereof  filed  with  the
 7    Department on or before the first day of  October,  whereupon
 8    the  Department  shall proceed to administer and enforce this
 9    Section as of the first day of  January  next  following  the
10    adoption and filing.
11        Any   unobligated  balance  remaining  in  the  Municipal
12    Retailers' Occupation Tax Fund on December  31,  1989,  which
13    fund was abolished by Public Act 85-1135, and all receipts of
14    municipal  tax  as  a  result  of audits of liability periods
15    prior to January 1,  1990,  shall  be  paid  into  the  Local
16    Government  Tax  Fund,  for  distribution as provided by this
17    Section prior to the enactment of  Public  Act  85-1135.  All
18    receipts  of  municipal  tax as a result of an assessment not
19    arising from an audit, for liability periods prior to January
20    1, 1990, shall be paid into the Local Government Tax Fund for
21    distribution before July 1, 1990, as provided by this Section
22    prior to the enactment of Public  Act  85-1135,  and  on  and
23    after July 1, 1990, all such receipts shall be distributed as
24    provided in Section 6z-18 of the State Finance Act.
25        As  used  in this Section, "municipal" and "municipality"
26    means a city, village  or  incorporated  town,  including  an
27    incorporated town which has superseded a civil township.
28        This  Section shall be known and may be cited as the Home
29    Rule Municipal Service Occupation Tax Act.
30    (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)

31        (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
32        Sec. 8-11-6.  Home Rule Municipal Use Tax Act.
33        (a)  The   corporate   authorities   of   a   home   rule
 
SB1310 Engrossed            -111-              LRB9110257SMdv
 1    municipality may impose a tax upon the privilege of using, in
 2    such municipality, any item  of  tangible  personal  property
 3    which  is  purchased  at retail from a retailer, and which is
 4    titled or registered  at  a  location  within  the  corporate
 5    limits  of such home rule municipality with an agency of this
 6    State's government, at a rate which is an increment  of  1/4%
 7    and  based  on  the  selling  price of such tangible personal
 8    property, as "selling price" is defined in the Use  Tax  Act.
 9    In   home   rule  municipalities  with  less  than  2,000,000
10    inhabitants, the tax shall be collected by  the  municipality
11    imposing  the  tax  from  persons  whose Illinois address for
12    titling or registration purposes is given as  being  in  such
13    municipality.
14        (b)  In  home  rule municipalities with 2,000,000 or more
15    inhabitants, the corporate authorities  of  the  municipality
16    may additionally impose a tax beginning July 1, 1991 upon the
17    privilege  of using in the municipality, any item of tangible
18    personal property,  other  than  tangible  personal  property
19    titled   or   registered   with  an  agency  of  the  State's
20    government, that is  purchased  at  retail  from  a  retailer
21    located  outside the corporate limits of the municipality, at
22    a rate that is an increment of 1/4%  not  to  exceed  1%  and
23    based on the selling price of the tangible personal property,
24    as  "selling  price" is defined in the Use Tax Act.  Such tax
25    shall be collected from the  purchaser  by  the  municipality
26    imposing such tax.
27        To prevent multiple home rule taxation, the use in a home
28    rule  municipality  of  tangible  personal  property  that is
29    acquired outside the municipality and caused  to  be  brought
30    into the municipality by a person who has already paid a home
31    rule  municipal tax in another municipality in respect to the
32    sale, purchase, or use of that property, shall be  exempt  to
33    the  extent of the amount of the tax properly due and paid in
34    the other home rule municipality.
 
SB1310 Engrossed            -112-              LRB9110257SMdv
 1        (b-5)  A home rule municipality that has  not  imposed  a
 2    tax  under  this  Section on the use of motor fuel or gasohol
 3    before the effective date of this amendatory Act of the  91st
 4    General Assembly shall not impose such a tax on or after that
 5    date.  A  home rule municipality that has imposed a tax under
 6    this Section on the use of motor fuel or gasohol  before  the
 7    effective  date  of  this  amendatory Act of the 91st General
 8    Assembly shall not increase the rate of the tax on  or  after
 9    that  date.  If,  as  a  result  of  the  provisions  of this
10    amendatory Act of the 91st General Assembly, the rate of  tax
11    imposed  on  the  sale  of  motor  fuel  and  gasohol  by the
12    Retailers' Occupation Tax Act  returns  to  6.25%,  then  the
13    prohibition  against imposing a tax on the sale of motor fuel
14    and gasohol and the prohibition against an  increase  in  the
15    rate of any tax already imposed on the sale of motor fuel and
16    gasohol  are  no longer in effect. This amendatory Act of the
17    91st General Assembly is a denial and limitation of home rule
18    powers to tax under subsection (g) of Section  6  of  Article
19    VII of the Illinois Constitution.
20        (c)  If   a   municipality   having   2,000,000  or  more
21    inhabitants imposes the tax  authorized  by  subsection  (a),
22    then the tax shall be collected by the Illinois Department of
23    Revenue  when  the  property  is  purchased  at retail from a
24    retailer in the county in which the  home  rule  municipality
25    imposing  the tax is located, and in all contiguous counties.
26    The tax shall be remitted  to  the  State,  or  an  exemption
27    determination must be obtained from the Department before the
28    title  or certificate of registration for the property may be
29    issued.  The tax or proof of exemption may be transmitted  to
30    the  Department  by  way  of  the State agency with which, or
31    State officer with whom, the tangible personal property  must
32    be  titled or registered if the Department and that agency or
33    State officer determine that this procedure will expedite the
34    processing of applications for title or registration.
 
SB1310 Engrossed            -113-              LRB9110257SMdv
 1        The Department shall have full power  to  administer  and
 2    enforce  this  Section  to  collect  all taxes, penalties and
 3    interest due hereunder, to dispose of  taxes,  penalties  and
 4    interest so collected in the manner hereinafter provided, and
 5    determine  all  rights to credit memoranda or refunds arising
 6    on account of  the  erroneous  payment  of  tax,  penalty  or
 7    interest  hereunder.  In the administration of and compliance
 8    with this Section the Department and persons who are  subject
 9    to  this  Section  shall  have  the  same  rights,  remedies,
10    privileges,  immunities, powers and duties, and be subject to
11    the same conditions, restrictions, limitations, penalties and
12    definitions of terms, and employ the same modes of  procedure
13    as  are  prescribed  in  Sections 2 (except the definition of
14    "retailer maintaining a place of business in this State"),  3
15    (except  provisions  pertaining to the State rate of tax, and
16    except provisions concerning collection or refunding  of  the
17    tax  by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22
18    of the Use Tax Act, which  are  not  inconsistent  with  this
19    Section,  as  fully  as  if  provisions  contained  in  those
20    Sections of the Use Tax Act were set forth herein.
21        Whenever the Department determines that a refund shall be
22    made  under  this  Section to a claimant instead of issuing a
23    credit memorandum, the  Department  shall  notify  the  State
24    Comptroller,  who  shall  cause the order to be drawn for the
25    amount  specified,  and  to  the  person   named,   in   such
26    notification  from the Department.  Such refund shall be paid
27    by the  State  Treasurer  out  of  the  home  rule  municipal
28    retailers' occupation tax fund.
29        The  Department  shall  forthwith  pay  over to the State
30    Treasurer, ex officio, as trustee, all taxes,  penalties  and
31    interest  collected  hereunder.  On or before the 25th day of
32    each calendar month, the Department shall prepare and certify
33    to the State Comptroller the disbursement of stated  sums  of
34    money  to  named  municipalities,  the  municipality  in each
 
SB1310 Engrossed            -114-              LRB9110257SMdv
 1    instance to be that municipality from  which  the  Department
 2    during   the   second  preceding  calendar  month,  collected
 3    municipal use tax from any person whose Illinois address  for
 4    titling  or  registration  purposes is given as being in such
 5    municipality.  The amount to be  paid  to  each  municipality
 6    shall   be   the  amount  (not  including  credit  memoranda)
 7    collected hereunder  during  the  second  preceding  calendar
 8    month by the Department, and not including an amount equal to
 9    the  amount  of  refunds  made  during  the  second preceding
10    calendar  month  by  the  Department  on   behalf   of   such
11    municipality,  less  the  amount  expended  during the second
12    preceding month  by  the  Department  to  be  paid  from  the
13    appropriation  to the Department from the Home Rule Municipal
14    Retailers' Occupation Tax Trust Fund.  The  appropriation  to
15    cover  the  costs incurred by the Department in administering
16    and enforcing this Section shall not exceed 2% of the  amount
17    estimated  to  be  deposited  into  the  Home  Rule Municipal
18    Retailers' Occupation Tax Trust Fund during the  fiscal  year
19    for  which  the  appropriation is made.  Within 10 days after
20    receipt  by  the  State  Comptroller  of   the   disbursement
21    certification  to  the  municipalities  provided  for in this
22    Section  to  be  given  to  the  State  Comptroller  by   the
23    Department,  the  State Comptroller shall cause the orders to
24    be drawn for the respective amounts in  accordance  with  the
25    directions contained in that certification.
26        Any  ordinance  imposing  or  discontinuing any tax to be
27    collected and enforced by the Department under  this  Section
28    shall  be adopted and a certified copy thereof filed with the
29    Department on or before October 1, whereupon  the  Department
30    of  Revenue  shall  proceed  to  administer  and enforce this
31    Section on behalf of the municipalities as of January 1  next
32    following such adoption and filing.  Beginning April 1, 1998,
33    any  ordinance  imposing  or  discontinuing  any  tax  to  be
34    collected  and  enforced by the Department under this Section
 
SB1310 Engrossed            -115-              LRB9110257SMdv
 1    shall either (i) be adopted  and  a  certified  copy  thereof
 2    filed with the Department on or before April 1, whereupon the
 3    Department of Revenue shall proceed to administer and enforce
 4    this  Section  on  behalf  of the municipalities as of July 1
 5    next following the adoption and filing; or  (ii)  be  adopted
 6    and  a certified copy thereof filed with the Department on or
 7    before October 1, whereupon the Department of  Revenue  shall
 8    proceed  to  administer and enforce this Section on behalf of
 9    the  municipalities  as  of  January  1  next  following  the
10    adoption and filing.
11        Nothing in this subsection (c) shall prevent a home  rule
12    municipality  from  collecting the tax pursuant to subsection
13    (a) in any situation where such tax is not collected  by  the
14    Department of Revenue under this subsection (c).
15        (d)  Any  unobligated  balance remaining in the Municipal
16    Retailers' Occupation Tax Fund on December  31,  1989,  which
17    fund was abolished by Public Act 85-1135, and all receipts of
18    municipal  tax  as  a  result  of audits of liability periods
19    prior to January 1,  1990,  shall  be  paid  into  the  Local
20    Government  Tax  Fund,  for  distribution as provided by this
21    Section prior to the enactment of  Public  Act  85-1135.  All
22    receipts  of  municipal  tax as a result of an assessment not
23    arising from an audit, for liability periods prior to January
24    1, 1990, shall be paid into the Local Government Tax Fund for
25    distribution before July 1, 1990, as provided by this Section
26    prior to the enactment of Public  Act  85-1135,  and  on  and
27    after July 1, 1990, all such receipts shall be distributed as
28    provided in Section 6z-18 of the State Finance Act.
29        (e)  As   used   in   this   Section,   "Municipal"   and
30    "Municipality"  means  a  city, village or incorporated town,
31    including an incorporated town which has superseded  a  civil
32    township.
33        (f)  This  Section shall be known and may be cited as the
34    Home Rule Municipal Use Tax Act.
 
SB1310 Engrossed            -116-              LRB9110257SMdv
 1    (Source: P.A. 90-562, eff. 12-16-97;  90-689,  eff.  7-31-98;
 2    91-51, eff. 6-30-99.)

 3        (65 ILCS 5/8-11-15) (from Ch. 24, par. 8-11-15)
 4        Sec. 8-11-15.  Municipal motor fuel.
 5        (a)  The  corporate authorities of a municipality of over
 6    100,000 inhabitants may, upon approval of the electors of the
 7    municipality pursuant to subsection (b), impose a tax of  one
 8    cent  per  gallon  on  motor  fuel sold at retail within such
 9    municipality. A tax imposed pursuant to this Section shall be
10    paid in addition to any other taxes on such motor fuel.
11        A municipality that has not  imposed  a  tax  under  this
12    Section  before  the effective date of this amendatory Act of
13    the 91st General Assembly shall not impose such a tax  on  or
14    after  that date. A municipality that has imposed a tax under
15    this Section before the effective date of this amendatory Act
16    of the 91st General Assembly shall not increase the  rate  of
17    the  tax  on  or  after  that  date.  If,  as a result of the
18    provisions  of  this  amendatory  Act  of  the  91st  General
19    Assembly, the rate of tax imposed on the sale of  motor  fuel
20    and  gasohol  by the Retailers' Occupation Tax Act returns to
21    6.25%, then the prohibition against imposing  a  tax  on  the
22    sale of motor fuel and gasohol and the prohibition against an
23    increase  in  the rate of any tax already imposed on the sale
24    of motor fuel and gasohol  are  no  longer  in  effect.  This
25    amendatory  Act  of the 91st General Assembly is a denial and
26    limitation of home rule powers to tax under subsection (g) of
27    Section 6 of Article VII of the Illinois Constitution.
28        (b)  The corporate authorities of the municipality may by
29    resolution call for the submission to  the  electors  of  the
30    municipality  of  the  question  of  whether the municipality
31    shall impose such tax.  Such question shall be  certified  by
32    the  municipal  clerk to the election authority in accordance
33    with Section 28-5 of The Election Code. The question shall be
 
SB1310 Engrossed            -117-              LRB9110257SMdv
 1    in substantially the following form:
 2    -------------------------------------------------------------
 3        Shall the city (village or
 4     incorporated town) of .......     YES
 5     impose a tax of one cent per   -----------------------------
 6     gallon on motor fuel sold at       NO
 7     retail within its boundaries?
 8    -------------------------------------------------------------
 9        If a majority of the electors in the municipality  voting
10    upon  the question vote in the affirmative, such tax shall be
11    imposed.
12        (c)  The purchaser of the motor fuel shall be liable  for
13    payment  of  a  tax  imposed  pursuant  to this Section. This
14    Section shall not  be  construed  to  impose  a  tax  on  the
15    occupation of persons engaged in the sale of motor fuel.
16        If a municipality imposes a tax on motor fuel pursuant to
17    this  Section,  it shall be the duty of any person engaged in
18    the retail sale of motor fuel  within  such  municipality  to
19    collect  such  tax  from  the  purchaser  at the same time he
20    collects the purchase price of the motor fuel and to pay over
21    such tax to the municipality as prescribed by  the  ordinance
22    of the municipality imposing such tax.
23        (d)  For  purposes  of  this  Section, "motor fuel" shall
24    have the same meaning as provided  in  the  "Motor  Fuel  Tax
25    Law".
26    (Source: P.A. 84-1099.)

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

29        (70 ILCS 200/245-12)
30        Sec. 245-12. Use and occupation taxes.
31        (a)  The Authority may adopt a resolution that authorizes
32    a  referendum  on the question of whether the Authority shall
 
SB1310 Engrossed            -118-              LRB9110257SMdv
 1    be authorized  to  impose  a  retailers'  occupation  tax,  a
 2    service  occupation tax, and a use tax in one-quarter percent
 3    increments at a rate not to exceed 1%.  The  Authority  shall
 4    certify  the  question to the proper election authorities who
 5    shall submit the question to the voters of  the  metropolitan
 6    area  at  the next regularly scheduled election in accordance
 7    with the general election  law.  The  question  shall  be  in
 8    substantially the following form:
 9        "Shall  the Salem Civic Center Authority be authorized to
10        impose a retailers' occupation tax, a service  occupation
11        tax,  and  a  use  tax at the rate of (rate) for the sole
12        purpose of obtaining funds for the support, construction,
13        maintenance,  or  financing  of   a   facility   of   the
14        Authority?"
15        Votes  shall  be recorded as "yes" or "no". If a majority
16    of all votes cast on the proposition  are  in  favor  of  the
17    proposition, the Authority is authorized to impose the tax.
18        (b)  The Authority shall impose the retailers' occupation
19    tax  upon  all  persons  engaged  in  the business of selling
20    tangible personal property  at  retail  in  the  metropolitan
21    area,  at  the  rate  approved  by  referendum,  on the gross
22    receipts from the sales made in the course of  such  business
23    within  the  metropolitan  area.   The tax imposed under this
24    Section and all civil penalties that may be  assessed  as  an
25    incident  thereof  shall  be  collected  and  enforced by the
26    Department of Revenue.  The  Department  has  full  power  to
27    administer and enforce this Section; to collect all taxes and
28    penalties  so  collected  in  the  manner  provided  in  this
29    Section;  and  to  determine  all  rights to credit memoranda
30    arising on account of the erroneous payment of tax or penalty
31    hereunder.  In the administration of,  and  compliance  with,
32    this  Section,  the Department and persons who are subject to
33    this Section  shall  (i)  have  the  same  rights,  remedies,
34    privileges, immunities, powers and duties, (ii) be subject to
 
SB1310 Engrossed            -119-              LRB9110257SMdv
 1    the  same  conditions,  restrictions, limitations, penalties,
 2    exclusions, exemptions, and definitions of terms,  and  (iii)
 3    employ  the  same  modes  of  procedure  as are prescribed in
 4    Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n,  2,
 5    2-5,  2-5.5, 2-10 (in respect to all provisions therein other
 6    than the State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3
 7    (except  as  to  the  disposition  of  taxes  and   penalties
 8    collected   and   provisions   related   to  quarter  monthly
 9    payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k,  5l,
10    6,  6a,  6b,  6c,  7,  8,  9,  10, 11, 11a, 12, and 13 of the
11    Retailers' Occupation Tax Act and Section 3-7 of the  Uniform
12    Penalty  and  Interest  Act,  as fully as if those provisions
13    were set forth in this subsection.
14        If the  Authority  has  not  imposed  a  tax  under  this
15    subsection  on  the  sale of motor fuel or gasohol before the
16    effective date of this amendatory Act  of  the  91st  General
17    Assembly,  then  the Authority shall not impose such a tax on
18    or after that date.  If the Authority has imposed a tax under
19    this subsection on the sale of motor fuel or  gasohol  before
20    the effective date of this amendatory Act of the 91st General
21    Assembly,  then  the Authority shall not increase the rate of
22    the tax on or after  that  date.  If,  as  a  result  of  the
23    provisions  of  this  amendatory  Act  of  the  91st  General
24    Assembly,  the  rate of tax imposed on the sale of motor fuel
25    and gasohol by the Retailers' Occupation Tax Act  returns  to
26    6.25%,  then  the  prohibition  against imposing a tax on the
27    sale of motor fuel and gasohol and the prohibition against an
28    increase in the rate of any tax already imposed on  the  sale
29    of motor fuel and gasohol are no longer in effect.
30        Persons  subject to any tax imposed under this subsection
31    may reimburse themselves for their seller's tax liability  by
32    separately  stating  the  tax  as an additional charge, which
33    charge may be stated in combination, in a single amount, with
34    State  taxes  that  sellers  are  required  to  collect,   in
 
SB1310 Engrossed            -120-              LRB9110257SMdv
 1    accordance  with such bracket schedules as the Department may
 2    prescribe.
 3        Whenever the Department determines that a  refund  should
 4    be  made  under  this  subsection  to  a  claimant instead of
 5    issuing a credit memorandum, the Department shall notify  the
 6    State  Comptroller,  who  shall cause the warrant to be drawn
 7    for the amount specified, and to the  person  named,  in  the
 8    notification  from  the Department.  The refund shall be paid
 9    by the State Treasurer out of the tax fund  referenced  under
10    paragraph (g) of this Section.
11        If  a  tax  is  imposed  under this subsection (b), a tax
12    shall also be imposed at the same rate under subsections  (c)
13    and (d) of this Section.
14        For  the  purpose of determining whether a tax authorized
15    under this  Section  is  applicable,  a  retail  sale,  by  a
16    producer  of  coal  or  other mineral mined in Illinois, is a
17    sale at retail at the place where the coal or  other  mineral
18    mined   in  Illinois  is  extracted  from  the  earth.   This
19    paragraph does not apply to coal or other mineral when it  is
20    delivered  or  shipped  by  the  seller to the purchaser at a
21    point outside Illinois so that the sale is exempt  under  the
22    Federal  Constitution  as  a  sale  in  interstate or foreign
23    commerce.
24        Nothing in this Section shall be construed  to  authorize
25    the  Authority to impose a tax upon the privilege of engaging
26    in any business which under the Constitution  of  the  United
27    States may not be made the subject of taxation by this State.
28        (c)  If  a  tax  has been imposed under subsection (b), a
29    service occupation tax shall also be imposed at the same rate
30    upon all persons engaged, in the metropolitan  area,  in  the
31    business  of  making sales of service, who, as an incident to
32    making those sales of  service,  transfer  tangible  personal
33    property  within  the  metropolitan  area as an incident to a
34    sale of service. The tax imposed under  this  subsection  and
 
SB1310 Engrossed            -121-              LRB9110257SMdv
 1    all  civil  penalties  that  may  be  assessed as an incident
 2    thereof shall be collected and enforced by the Department  of
 3    Revenue.  The  Department  has  full  power to administer and
 4    enforce this paragraph; to collect all  taxes  and  penalties
 5    due hereunder; to dispose of taxes and penalties so collected
 6    in  the  manner  hereinafter  provided;  and to determine all
 7    rights  to  credit  memoranda  arising  on  account  of   the
 8    erroneous  payment  of  tax  or  penalty  hereunder.   In the
 9    administration of, and compliance with  this  paragraph,  the
10    Department  and  persons  who  are  subject to this paragraph
11    shall  (i)  have  the  same  rights,  remedies,   privileges,
12    immunities,  powers,  and duties, (ii) be subject to the same
13    conditions, restrictions, limitations, penalties, exclusions,
14    exemptions, and definitions of terms, and  (iii)  employ  the
15    same  modes  of  procedure  as  are  prescribed in Sections 2
16    (except that the reference to  State  in  the  definition  of
17    supplier  maintaining a place of business in this State shall
18    mean the metropolitan area),  2a,  2b,  3  through  3-55  (in
19    respect  to  all provisions therein other than the State rate
20    of tax), 4 (except that the reference to the State  shall  be
21    to  the  Authority), 5, 7, 8 (except that the jurisdiction to
22    which the tax shall be a debt to the extent indicated in that
23    Section 8 shall be  the  Authority),  9  (except  as  to  the
24    disposition of taxes and penalties collected, and except that
25    the returned merchandise credit for this tax may not be taken
26    against  any State tax), 11, 12 (except the reference therein
27    to Section 2b of  the  Retailers'  Occupation  Tax  Act),  13
28    (except  that  any  reference  to  the  State  shall mean the
29    Authority), 15,  16,  17,  18,  19  and  20  of  the  Service
30    Occupation Tax Act and Section 3-7 of the Uniform Penalty and
31    Interest  Act, as fully as if those provisions were set forth
32    herein.
33        If the  Authority  has  not  imposed  a  tax  under  this
34    subsection  on  the  selling  price  of motor fuel or gasohol
 
SB1310 Engrossed            -122-              LRB9110257SMdv
 1    before the effective date of this amendatory Act of the  91st
 2    General  Assembly, then the Authority shall not impose such a
 3    tax on or after that date.  If the Authority  has  imposed  a
 4    tax  under this subsection on the selling price of motor fuel
 5    or gasohol before the effective date of this  amendatory  Act
 6    of  the  91st  General Assembly, then the Authority shall not
 7    increase the rate of the tax on or after that date. If, as  a
 8    result  of  the provisions of this amendatory Act of the 91st
 9    General Assembly, the rate of tax  imposed  on  the  sale  of
10    motor  fuel  and gasohol by the Retailers' Occupation Tax Act
11    returns to 6.25%, then the prohibition against imposing a tax
12    on the sale of motor fuel and  gasohol  and  the  prohibition
13    against an increase in the rate of any tax already imposed on
14    the sale of motor fuel and gasohol are no longer in effect.
15        Persons  subject  to  any tax imposed under the authority
16    granted in this subsection may reimburse themselves for their
17    serviceman's tax liability by separately stating the  tax  as
18    an   additional   charge,  which  charge  may  be  stated  in
19    combination,  in  a  single  amount,  with  State  tax   that
20    servicemen  are  authorized  to collect under the Service Use
21    Tax Act, in accordance with such  bracket  schedules  as  the
22    Department may prescribe.
23        Whenever  the  Department determines that a refund should
24    be made under  this  subsection  to  a  claimant  instead  of
25    issuing  a credit memorandum, the Department shall notify the
26    State Comptroller, who shall cause the warrant  to  be  drawn
27    for  the  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 the tax fund referenced under
30    paragraph (g) of this Section.
31        Nothing in this paragraph shall be construed to authorize
32    the Authority to impose a tax upon the privilege of  engaging
33    in  any  business  which under the Constitution of the United
34    States may not be made the subject of taxation by the State.
 
SB1310 Engrossed            -123-              LRB9110257SMdv
 1        (d)  If a tax has been imposed under  subsection  (b),  a
 2    use  tax  shall  also  be  imposed  at the same rate upon the
 3    privilege of using, in the metropolitan  area,  any  item  of
 4    tangible  personal  property  that  is  purchased outside the
 5    metropolitan area at retail from  a  retailer,  and  that  is
 6    titled  or  registered  at a location within the metropolitan
 7    area with an agency  of  this  State's  government.  "Selling
 8    price"  is  defined  as in the Use Tax Act.  The tax shall be
 9    collected from persons whose Illinois address for titling  or
10    registration  purposes  is given as being in the metropolitan
11    area.  The tax  shall  be  collected  by  the  Department  of
12    Revenue for the Authority. The tax must be paid to the State,
13    or  an  exemption  determination  must  be  obtained from the
14    Department of Revenue, before the  title  or  certificate  of
15    registration  for  the  property  may  be issued.  The tax or
16    proof of exemption may be transmitted to  the  Department  by
17    way of the State agency with which, or the State officer with
18    whom,  the  tangible  personal  property  must  be  titled or
19    registered if the Department and the State  agency  or  State
20    officer  determine  that  this  procedure  will  expedite the
21    processing of applications for title or registration.
22        The Department has full power to administer  and  enforce
23    this  paragraph; to collect all taxes, penalties and interest
24    due hereunder; to dispose of taxes, penalties and interest so
25    collected  in  the  manner  hereinafter  provided;   and   to
26    determine  all  rights to credit memoranda or refunds arising
27    on account of  the  erroneous  payment  of  tax,  penalty  or
28    interest  hereunder. In the administration of, and compliance
29    with, this subsection, the Department  and  persons  who  are
30    subject  to  this  paragraph  shall (i) have the same rights,
31    remedies, privileges, immunities, powers, and duties, (ii) be
32    subject to the same  conditions,  restrictions,  limitations,
33    penalties,  exclusions, exemptions, and definitions of terms,
34    and  (iii)  employ  the  same  modes  of  procedure  as   are
 
SB1310 Engrossed            -124-              LRB9110257SMdv
 1    prescribed  in Sections 2 (except the definition of "retailer
 2    maintaining a place of business  in  this  State"),  3,  3-5,
 3    3-10,  3-45,  3-55,  3-65, 3-70, 3-85, 3a, 4, 6, 7, 8 (except
 4    that the jurisdiction to which the tax shall be a debt to the
 5    extent indicated in that Section 8 shall be the Authority), 9
 6    (except provisions relating to quarter monthly payments), 10,
 7    11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22 of  the  Use
 8    Tax  Act  and Section 3-7 of the Uniform Penalty and Interest
 9    Act, that are not inconsistent with this paragraph, as  fully
10    as if those provisions were set forth herein.
11        If  the  Authority  has  not  imposed  a  tax  under this
12    subsection on the use of motor fuel  or  gasohol  before  the
13    effective  date  of  this  amendatory Act of the 91st General
14    Assembly, then the Authority shall not impose such a  tax  on
15    or after that date.  If the Authority has imposed a tax under
16    this  subsection  on  the use of motor fuel or gasohol before
17    the effective date of this amendatory Act of the 91st General
18    Assembly, then the Authority shall not increase the  rate  of
19    the  tax  on  or  after  that  date.  If,  as a result of the
20    provisions  of  this  amendatory  Act  of  the  91st  General
21    Assembly, the rate of tax imposed on the sale of  motor  fuel
22    and  gasohol  by the Retailers' Occupation Tax Act returns to
23    6.25%, then the prohibition against imposing  a  tax  on  the
24    sale of motor fuel and gasohol and the prohibition against an
25    increase  in  the rate of any tax already imposed on the sale
26    of motor fuel and gasohol are no longer in effect.
27        Whenever the Department determines that a  refund  should
28    be  made  under  this  subsection  to  a  claimant instead of
29    issuing a credit memorandum, the Department shall notify  the
30    State  Comptroller, who shall cause the order to be drawn for
31    the amount  specified,  and  to  the  person  named,  in  the
32    notification from the Department. The refund shall be paid by
33    the  State  Treasurer  out  of  the tax fund referenced under
34    paragraph (g) of this Section.
 
SB1310 Engrossed            -125-              LRB9110257SMdv
 1        (e)  A certificate of registration issued  by  the  State
 2    Department  of  Revenue  to  a  retailer under the Retailers'
 3    Occupation Tax Act or under the Service  Occupation  Tax  Act
 4    shall  permit  the registrant to engage in a business that is
 5    taxed under the tax imposed under paragraphs (b), (c), or (d)
 6    of this Section  and  no  additional  registration  shall  be
 7    required.  A  certificate issued under the Use Tax Act or the
 8    Service Use Tax Act shall be applicable with  regard  to  any
 9    tax imposed under paragraph (c) of this Section.
10        (f)  The   results   of   any   election   authorizing  a
11    proposition to impose a tax under this Section or effecting a
12    change in the rate of tax shall be certified  by  the  proper
13    election  authorities  and filed with the Illinois Department
14    on or before  the  first  day  of  April.   In  addition,  an
15    ordinance  imposing,  discontinuing, or effecting a change in
16    the rate of tax under this Section shall  be  adopted  and  a
17    certified copy thereof filed with the Department on or before
18    the  first  day  of  April.   After  proper  receipt  of such
19    certifications, the Department shall  proceed  to  administer
20    and  enforce  this  Section  as of the first day of July next
21    following such adoption and filing.
22        (g)  The Department of Revenue shall, upon collecting any
23    taxes and penalties as provided  in  this  Section,  pay  the
24    taxes  and  penalties  over to the State Treasurer as trustee
25    for the Authority. The taxes and penalties shall be held in a
26    trust fund outside the State Treasury. On or before the  25th
27    day  of  each calendar month, the Department of Revenue shall
28    prepare and certify  to  the  Comptroller  of  the  State  of
29    Illinois  the amount to be paid to the Authority, which shall
30    be the balance in the fund, less any amount determined by the
31    Department to be necessary for the payment of refunds. Within
32    10 days after receipt by the Comptroller of the certification
33    of the amount to be paid to the  Authority,  the  Comptroller
34    shall  cause  an order to be drawn for payment for the amount
 
SB1310 Engrossed            -126-              LRB9110257SMdv
 1    in  accordance  with  the   directions   contained   in   the
 2    certification.  Amounts  received  from the tax imposed under
 3    this  Section  shall  be   used   only   for   the   support,
 4    construction,  maintenance, or financing of a facility of the
 5    Authority.
 6        (h)  When certifying the amount of a monthly disbursement
 7    to the Authority under this  Section,  the  Department  shall
 8    increase  or  decrease  the amounts by an amount necessary to
 9    offset any miscalculation  of  previous  disbursements.   The
10    offset  amount  shall  be  the  amount  erroneously disbursed
11    within the previous 6 months from the time  a  miscalculation
12    is discovered.
13        (i)  This  Section may be cited as the Salem Civic Center
14    Use and Occupation Tax Law.
15    (Source: P.A. 90-328, eff. 1-1-98.)

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

18        (70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
19        Sec.  5.01.  Metro  East  Mass  Transit District; use and
20    occupation taxes.
21        (a)  The Board of Trustees of any Metro East Mass Transit
22    District may, by ordinance adopted with  the  concurrence  of
23    two-thirds  of  the  then  trustees,  impose  throughout  the
24    District  any  or  all of the taxes and fees provided in this
25    Section.  All taxes and fees imposed under this Section shall
26    be used only for public mass transportation systems, and  the
27    amount used to provide mass transit service to unserved areas
28    of  the District shall be in the same proportion to the total
29    proceeds as the number of persons residing  in  the  unserved
30    areas  is to the total population of the District.  Except as
31    otherwise provided in this  Act,  taxes  imposed  under  this
32    Section and civil penalties imposed incident thereto shall be
 
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 1    collected  and  enforced  by the State Department of Revenue.
 2    The Department shall have the power to administer and enforce
 3    the taxes  and  to  determine  all  rights  for  refunds  for
 4    erroneous payments of the taxes.
 5        (b)  The  Board  may  impose  a  Metro  East Mass Transit
 6    District Retailers' Occupation Tax upon all  persons  engaged
 7    in  the  business  of  selling  tangible personal property at
 8    retail in the district  at  a  rate  of  1/4  of  1%,  or  as
 9    authorized  under  subsection  (d-5)  of this Section, of the
10    gross receipts from the sales made  in  the  course  of  such
11    business  within  the  district.   The tax imposed under this
12    Section and all civil penalties that may be  assessed  as  an
13    incident thereof shall be collected and enforced by the State
14    Department  of Revenue.  The Department shall have full power
15    to administer and enforce this Section; to collect all  taxes
16    and   penalties   so  collected  in  the  manner  hereinafter
17    provided; and to determine all  rights  to  credit  memoranda
18    arising on account of the erroneous payment of tax or penalty
19    hereunder.   In  the  administration of, and compliance with,
20    this Section, the Department and persons who are  subject  to
21    this   Section   shall   have   the  same  rights,  remedies,
22    privileges, immunities, powers and duties, and be subject  to
23    the  same  conditions,  restrictions, limitations, penalties,
24    exclusions, exemptions and definitions of  terms  and  employ
25    the same modes of procedure, as are prescribed in Sections 1,
26    1a,  1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect
27    to all provisions therein other than the State rate of  tax),
28    2c,  3  (except  as to the disposition of taxes and penalties
29    collected), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
30    6, 6a, 6b, 6c, 7, 8, 9,  10,  11,  12,  13,  and  14  of  the
31    Retailers'  Occupation Tax Act and Section 3-7 of the Uniform
32    Penalty and Interest Act, as fully  as  if  those  provisions
33    were set forth herein.
34        If  the Board has not imposed a tax under this subsection
 
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 1    on the sale of motor fuel or  gasohol  before  the  effective
 2    date  of  this  amendatory  Act of the 91st General Assembly,
 3    then the Board shall not impose such a tax on or  after  that
 4    date.   If  the Board has imposed a tax under this subsection
 5    on the sale of motor fuel or  gasohol  before  the  effective
 6    date  of  this  amendatory  Act of the 91st General Assembly,
 7    then the Board shall not increase the rate of the tax  on  or
 8    after  that  date.  If, as a result of the provisions of this
 9    amendatory Act of the 91st General Assembly, the rate of  tax
10    imposed  on  the  sale  of  motor  fuel  and  gasohol  by the
11    Retailers' Occupation Tax Act  returns  to  6.25%,  then  the
12    prohibition  against imposing a tax on the sale of motor fuel
13    and gasohol and the prohibition against an  increase  in  the
14    rate of any tax already imposed on the sale of motor fuel and
15    gasohol are no longer in effect.
16        Persons  subject to any tax imposed under the Section may
17    reimburse  themselves  for  their  seller's   tax   liability
18    hereunder  by  separately  stating  the  tax as an additional
19    charge, which charge may  be  stated  in  combination,  in  a
20    single  amount, with State taxes that sellers are required to
21    collect under the  Use  Tax  Act,  in  accordance  with  such
22    bracket schedules as the Department may prescribe.
23        Whenever  the  Department determines that a refund should
24    be made under this Section to a claimant instead of issuing a
25    credit memorandum, the  Department  shall  notify  the  State
26    Comptroller,  who shall cause the warrant 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 the  Metro  East  Mass  Transit
30    District  tax  fund  established  under paragraph (g) of this
31    Section.
32        If a tax is imposed under  this  subsection  (b),  a  tax
33    shall  also  be imposed under subsections (c) and (d) of this
34    Section.
 
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 1        For the purpose of determining whether a  tax  authorized
 2    under  this  Section  is  applicable,  a  retail  sale,  by a
 3    producer of coal or other mineral mined  in  Illinois,  is  a
 4    sale  at  retail at the place where the coal or other mineral
 5    mined  in  Illinois  is  extracted  from  the  earth.    This
 6    paragraph  does not apply to coal or other mineral when it is
 7    delivered or shipped by the seller  to  the  purchaser  at  a
 8    point  outside  Illinois so that the sale is exempt under the
 9    Federal Constitution as  a  sale  in  interstate  or  foreign
10    commerce.
11        Nothing  in  this Section shall be construed to authorize
12    the Metro East Mass Transit District to impose a tax upon the
13    privilege  of  engaging  in  any  business  which  under  the
14    Constitution of the United States may not be made the subject
15    of taxation by this State.
16        (c)  If a tax has been imposed under  subsection  (b),  a
17    Metro East Mass Transit District Service Occupation Tax shall
18    also be imposed upon all persons engaged, in the district, in
19    the  business of making sales of service, who, as an incident
20    to making those sales of service, transfer tangible  personal
21    property  within the District, either in the form of tangible
22    personal property or  in  the  form  of  real  estate  as  an
23    incident to a sale of service. The tax rate shall be 1/4%, or
24    as  authorized under subsection (d-5) of this Section, of the
25    selling price of tangible personal  property  so  transferred
26    within  the  district.   The tax imposed under this paragraph
27    and all civil penalties that may be assessed as  an  incident
28    thereof   shall  be  collected  and  enforced  by  the  State
29    Department of Revenue. The Department shall have  full  power
30    to  administer  and  enforce  this  paragraph; to collect all
31    taxes and penalties due hereunder; to dispose  of  taxes  and
32    penalties  so  collected  in the manner hereinafter provided;
33    and to determine all rights to credit  memoranda  arising  on
34    account of the erroneous payment of tax or penalty hereunder.
 
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 1    In the administration of, and compliance with this paragraph,
 2    the  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    Authority), 2a, 3 through 3-50 (in respect to all  provisions
11    therein other than the State rate of tax), 4 (except that the
12    reference  to  the  State shall be to the Authority), 5, 7, 8
13    (except that the jurisdiction to which the  tax  shall  be  a
14    debt  to  the extent indicated in that Section 8 shall be the
15    District), 9 (except as  to  the  disposition  of  taxes  and
16    penalties collected, and except that the returned merchandise
17    credit  for this tax may not be taken against any State tax),
18    10, 11, 12 (except the reference therein to Section 2b of the
19    Retailers' Occupation Tax Act), 13 (except that any reference
20    to the State shall mean the District), the first paragraph of
21    Section 15, 16, 17, 18, 19 and 20 of the  Service  Occupation
22    Tax  Act  and Section 3-7 of the Uniform Penalty and Interest
23    Act, as fully as if those provisions were set forth herein.
24        If the Board has not imposed a tax under this  subsection
25    on  the  selling  price  of  motor fuel or gasohol before the
26    effective date of this amendatory Act  of  the  91st  General
27    Assembly,  then  the  Board shall not impose such a tax on or
28    after that date.  If the Board has imposed a tax  under  this
29    subsection  on  the  selling  price  of motor fuel or gasohol
30    before the effective date  of  this  amendatory  Act  of  the
31    General  Assembly, then the Board shall not increase the rate
32    of the tax on or after that date. If,  as  a  result  of  the
33    provisions  of  this  amendatory  Act  of  the  91st  General
34    Assembly,  the  rate of tax imposed on the sale of motor fuel
 
SB1310 Engrossed            -131-              LRB9110257SMdv
 1    and gasohol by the Retailers' Occupation Tax Act  returns  to
 2    6.25%,  then  the  prohibition  against imposing a tax on the
 3    sale of motor fuel and gasohol and the prohibition against an
 4    increase in the rate of any tax already imposed on  the  sale
 5    of motor fuel and gasohol are no longer in effect.
 6        Persons  subject  to  any tax imposed under the authority
 7    granted in this paragraph may reimburse themselves for  their
 8    serviceman's  tax  liability  hereunder by separately stating
 9    the tax as an additional charge, which charge may  be  stated
10    in  combination,  in  a  single  amount,  with State tax that
11    servicemen are authorized to collect under  the  Service  Use
12    Tax  Act,  in  accordance  with such bracket schedules as the
13    Department may prescribe.
14        Whenever the Department determines that a  refund  should
15    be made under this paragraph to a claimant instead of issuing
16    a  credit  memorandum,  the Department shall notify the State
17    Comptroller, who shall cause the warrant to be drawn for  the
18    amount   specified,   and   to   the  person  named,  in  the
19    notification from the Department.  The refund shall  be  paid
20    by  the  State  Treasurer  out of the Metro East Mass Transit
21    District tax fund established under  paragraph  (g)  of  this
22    Section.
23        Nothing in this paragraph shall be construed to authorize
24    the  District  to impose a tax upon the privilege of engaging
25    in any business which under the Constitution  of  the  United
26    States may not be made the subject of taxation by the State.
27        (d)  If  a  tax  has been imposed under subsection (b), a
28    Metro East Mass  Transit  District  Use  Tax  shall  also  be
29    imposed  upon  the  privilege  of using, in the district, any
30    item of tangible personal property that is purchased  outside
31    the district at retail from a retailer, and that is titled or
32    registered  with  an  agency of this State's government, at a
33    rate of 1/4%, or as authorized under subsection (d-5) of this
34    Section, of  the  selling  price  of  the  tangible  personal
 
SB1310 Engrossed            -132-              LRB9110257SMdv
 1    property  within  the District, as "selling price" is defined
 2    in the Use Tax Act.  The tax shall be collected from  persons
 3    whose  Illinois  address for titling or registration purposes
 4    is given  as  being  in  the  District.   The  tax  shall  be
 5    collected  by  the  Department  of Revenue for the Metro East
 6    Mass Transit District.  The tax must be paid to the State, or
 7    an  exemption  determination  must  be  obtained   from   the
 8    Department  of  Revenue,  before  the title or certificate of
 9    registration for the property may  be  issued.   The  tax  or
10    proof  of  exemption  may be transmitted to the Department by
11    way of the State agency with which, or the State officer with
12    whom, the  tangible  personal  property  must  be  titled  or
13    registered  if  the  Department and the State agency or State
14    officer determine  that  this  procedure  will  expedite  the
15    processing of applications for title or registration.
16        The  Department  shall  have full power to administer and
17    enforce this paragraph; to collect all taxes,  penalties  and
18    interest  due  hereunder;  to dispose of taxes, penalties and
19    interest so collected in the manner hereinafter provided; and
20    to determine  all  rights  to  credit  memoranda  or  refunds
21    arising  on  account of the erroneous payment of tax, penalty
22    or  interest  hereunder.  In  the  administration   of,   and
23    compliance  with,  this paragraph, the Department and persons
24    who are subject to this paragraph shall have the same rights,
25    remedies, privileges, immunities, powers and duties,  and  be
26    subject  to  the  same conditions, restrictions, limitations,
27    penalties, exclusions, exemptions and  definitions  of  terms
28    and  employ the same modes of procedure, as are prescribed in
29    Sections 2 (except the definition of "retailer maintaining  a
30    place  of  business  in  this State"), 3 through 3-80 (except
31    provisions pertaining to the State rate of  tax,  and  except
32    provisions  concerning  collection or refunding of the tax by
33    retailers), 4, 11, 12, 12a, 14, 15, 19 (except  the  portions
34    pertaining  to  claims  by  retailers  and  except  the  last
 
SB1310 Engrossed            -133-              LRB9110257SMdv
 1    paragraph  concerning  refunds), 20, 21 and 22 of the Use Tax
 2    Act and Section 3-7 of the Uniform Penalty and Interest  Act,
 3    that are not inconsistent with this paragraph, as fully as if
 4    those provisions were set forth herein.
 5        If  the Board has not imposed a tax under this subsection
 6    on the use of motor fuel or gasohol before the effective date
 7    of this amendatory Act of the 91st General Assembly, then the
 8    Board shall not impose such a tax on or after that date.   If
 9    the  Board has imposed a tax under this subsection on the use
10    of motor fuel or gasohol before the effective  date  of  this
11    amendatory  Act  of the 91st General Assembly, then the Board
12    shall not increase the rate of the tax on or after that date.
13    If, as a result of the provisions of this amendatory  Act  of
14    the  91st  General  Assembly,  the rate of tax imposed on the
15    sale of motor fuel and gasohol by the  Retailers'  Occupation
16    Tax  Act  returns  to  6.25%,  then  the  prohibition against
17    imposing a tax on the sale of motor fuel and gasohol and  the
18    prohibition  against  an  increase  in  the  rate  of any tax
19    already imposed on the sale of motor fuel and gasohol are  no
20    longer in effect.
21        Whenever  the  Department determines that a refund should
22    be made under this paragraph to a claimant instead of issuing
23    a credit memorandum, the Department shall  notify  the  State
24    Comptroller,  who  shall  cause the order to be drawn for the
25    amount  specified,  and  to  the   person   named,   in   the
26    notification from the Department. The refund shall be paid by
27    the  State  Treasurer  out  of  the  Metro  East Mass Transit
28    District tax fund established under  paragraph  (g)  of  this
29    Section.
30        (d-5)  The  county  board  of any county participating in
31    the Metro  East  Mass  Transit  District  may  authorize,  by
32    ordinance,  a  referendum  on the question of whether the tax
33    rates for the Metro East  Mass  Transit  District  Retailers'
34    Occupation  Tax, the Metro East Mass Transit District Service
 
SB1310 Engrossed            -134-              LRB9110257SMdv
 1    Occupation Tax, and the Metro East Mass Transit District  Use
 2    Tax for the District should be increased from 0.25% to 0.75%.
 3    Upon  adopting  the ordinance, the county board shall certify
 4    the proposition to the proper election  officials  who  shall
 5    submit  the  proposition to the voters of the District at the
 6    next election, in accordance with the general election law.
 7        The proposition shall be in substantially  the  following
 8    form:
 9             Shall  the tax rates for the Metro East Mass Transit
10        District Retailers' Occupation Tax, the Metro  East  Mass
11        Transit  District  Service  Occupation Tax, and the Metro
12        East Mass Transit District Use  Tax  be   increased  from
13        0.25% to 0.75%?
14        The  votes  shall  be  recorded  as  "YES"  or "NO". If a
15    majority of all votes cast on the  proposition  are  for  the
16    increase  in  the  tax  rates,  the  Metro  East Mass Transit
17    District shall begin imposing  the  increased  rates  in  the
18    District,   and   the   Department  of  Revenue  shall  begin
19    collecting the increased  amounts,  as  provided  under  this
20    Section.   An  ordinance  imposing  or  discontinuing  a  tax
21    hereunder or effecting a change in the rate thereof shall  be
22    adopted   and   a  certified  copy  thereof  filed  with  the
23    Department on or before the first day of  October,  whereupon
24    the  Department  shall proceed to administer and enforce this
25    Section as of the first day of  January  next  following  the
26    adoption and filing.
27        If  the  voters  have  approved  a  referendum under this
28    subsection, before November 1, 1994, to increase the tax rate
29    under this subsection, the Metro East Mass  Transit  District
30    Board  of  Trustees may adopt by a majority vote an ordinance
31    at any time before January 1, 1995  that  excludes  from  the
32    rate  increase  tangible  personal property that is titled or
33    registered with an agency of this  State's  government.   The
34    ordinance  excluding  titled  or registered tangible personal
 
SB1310 Engrossed            -135-              LRB9110257SMdv
 1    property from the  rate  increase  must  be  filed  with  the
 2    Department at least 15 days before its effective date. At any
 3    time  after  adopting  an  ordinance  excluding from the rate
 4    increase  tangible  personal  property  that  is  titled   or
 5    registered  with  an  agency  of this State's government, the
 6    Metro East Mass Transit District Board of Trustees may  adopt
 7    an  ordinance  applying  the  rate  increase to that tangible
 8    personal property. The ordinance  shall  be  adopted,  and  a
 9    certified  copy  of  that  ordinance  shall be filed with the
10    Department, on or before October 1, whereupon the  Department
11    shall  proceed  to  administer  and enforce the rate increase
12    against tangible personal property titled or registered  with
13    an  agency  of  this  State's  government as of the following
14    January 1.  After  December  31,  1995,  any  reimposed  rate
15    increase  in  effect  under  this  subsection shall no longer
16    apply to tangible personal property titled or registered with
17    an agency of this State's government.  Beginning  January  1,
18    1996,  the  Board  of Trustees of any Metro East Mass Transit
19    District may never reimpose a previously  excluded  tax  rate
20    increase  on  tangible personal property titled or registered
21    with an agency of this State's government.
22        (d-6)  If the Board of Trustees of any  Metro  East  Mass
23    Transit District has imposed a rate increase under subsection
24    (d-5)  and  filed an ordinance with the Department of Revenue
25    excluding titled property from the  higher  rate,  then  that
26    Board  may,  by  ordinance  adopted  with  the concurrence of
27    two-thirds  of  the  then  trustees,  impose  throughout  the
28    District a fee.  The fee on the excluded property  shall  not
29    exceed  $20  per retail transaction or an amount equal to the
30    amount of  tax  excluded,  whichever  is  less,  on  tangible
31    personal property that is titled or registered with an agency
32    of  this  State's  government.   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
 
SB1310 Engrossed            -136-              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 as  of  the
 4    first  day  of the second month following the adoption of the
 5    ordinance.
 6        (d-7)  If a fee has been imposed under subsection  (d-6),
 7    a  fee  shall also be imposed upon the privilege of using, in
 8    the district, any item of tangible personal property that  is
 9    titled   or  registered  with  any  agency  of  this  State's
10    government, in an amount equal  to  the  amount  of  the  fee
11    imposed under subsection (d-6).  The Board of Trustees of any
12    Metro  East  Mass  Transit  District shall have full power to
13    administer and enforce this subsection and to  determine  all
14    rights  to  credit memoranda or refunds arising on account of
15    the erroneous payment of the fee hereunder.  The Board  shall
16    proceed   to   administer   and   enforce   this   subsection
17    concurrently with the administration of the fee imposed under
18    subsection (d-6).
19        (d-8)  No  item  of  titled  property shall be subject to
20    both the higher rate approved by  referendum,  as  authorized
21    under  subsection (d-5), and any fee imposed under subsection
22    (d-6) or (d-7).
23        (d-9)  If fees have been imposed under subsections  (d-6)
24    and  (d-7),  the  Board shall forward a copy of the ordinance
25    adopting such fees, which shall  include  all  zip  codes  in
26    whole  or  in  part within the boundaries of the district, to
27    the Secretary of State within thirty days.  By  the  25th  of
28    each month, the Secretary of State shall subsequently provide
29    the  Board  with  a  list of identifiable retail transactions
30    subject to the .25% rate occurring within the zip codes which
31    are in whole or in part within the boundaries of the district
32    and a list of title applications  for  addresses  within  the
33    boundaries of the district for the previous month.
34        (d-10)  In  the  event  that  a  retailer  fails  to  pay
 
SB1310 Engrossed            -137-              LRB9110257SMdv
 1    applicable   fees   within   30  days  of  the  date  of  the
 2    transaction, a penalty shall be assessed at the rate  of  25%
 3    of  the  amount  of  fees.   Interest  on  both late fees and
 4    penalties shall be assessed at the rate of 1% per month.  All
 5    fees, penalties, and attorney fees shall constitute a lien on
 6    the personal and real property of the retailer.  The Board of
 7    Trustees of any Metro East Transit District shall  have  full
 8    power to administer and enforce this subsection.
 9        (e)  A  certificate  of  registration issued by the State
10    Department of Revenue to  a  retailer  under  the  Retailers'
11    Occupation  Tax  Act  or under the Service Occupation Tax Act
12    shall permit the registrant to engage in a business  that  is
13    taxed  under the tax imposed under paragraphs (b), (c) or (d)
14    of this Section  and  no  additional  registration  shall  be
15    required  under  the  tax. A certificate issued under the Use
16    Tax Act or the Service Use Tax Act shall be  applicable  with
17    regard  to  any  tax  imposed  under  paragraph  (c)  of this
18    Section.
19        (f)  The Board may impose a replacement  vehicle  tax  of
20    $50  on any passenger car, as defined in Section 1-157 of the
21    Illinois Vehicle Code, purchased within the district area  by
22    or  on  behalf of an insurance company to replace a passenger
23    car of an insured person in settlement of a total loss claim.
24    The tax imposed may not become effective before the first day
25    of the month following the passage of the ordinance  imposing
26    the  tax  and receipt of a certified copy of the ordinance by
27    the Department of Revenue.  The Department of  Revenue  shall
28    collect  the tax for the district in accordance with Sections
29    3-2002 and 3-2003 of the Illinois Vehicle Code.
30        The Department shall immediately pay over  to  the  State
31    Treasurer,  ex  officio,  as  trustee,  all  taxes  collected
32    hereunder.  On or before the 25th day of each calendar month,
33    the  Department  shall prepare and certify to the Comptroller
34    the disbursement of stated sums of money to named  districts,
 
SB1310 Engrossed            -138-              LRB9110257SMdv
 1    the  districts  to  be  those  from which retailers have paid
 2    taxes or penalties hereunder to  the  Department  during  the
 3    second  preceding  calendar  month.  The amount to be paid to
 4    each district shall be the amount collected hereunder  during
 5    the  second  preceding calendar month by the Department, less
 6    any amount determined by the Department to be  necessary  for
 7    the  payment of refunds.  Within 10 days after receipt by the
 8    Comptroller  of  the  disbursement   certification   to   the
 9    districts,  provided  for  in this Section to be given to the
10    Comptroller by the Department, the  Comptroller  shall  cause
11    the  orders  to  be  drawn  for  the  respective  amounts  in
12    accordance    with    the   directions   contained   in   the
13    certification.
14        (g)  Any ordinance  imposing  or  discontinuing  any  tax
15    under  this  Section  shall  be  adopted and a certified copy
16    thereof filed with  the  Department  on  or  before  June  1,
17    whereupon   the   Department  of  Revenue  shall  proceed  to
18    administer and enforce this Section on behalf  of  the  Metro
19    East  Mass  Transit District as of September 1 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, except as provided in subsection (d-5) of this Section,
28    an ordinance or resolution imposing or discontinuing the  tax
29    hereunder shall be adopted and a certified copy thereof filed
30    with  the  Department  on or before the first day of October,
31    whereupon the Department  shall  proceed  to  administer  and
32    enforce  this  Section  as  of  the first day of January next
33    following such adoption and filing.
34        (h)  The  State  Department  of   Revenue   shall,   upon
 
SB1310 Engrossed            -139-              LRB9110257SMdv
 1    collecting  any  taxes  as  provided in this Section, pay the
 2    taxes  over  to  the  State  Treasurer  as  trustee  for  the
 3    District. The taxes shall be held in a trust fund outside the
 4    State Treasury. On or before the 25th day  of  each  calendar
 5    month,  the  State  Department  of  Revenue shall prepare and
 6    certify to the Comptroller  of  the  State  of  Illinois  the
 7    amount  to  be  paid to the District, which shall be the then
 8    balance in the  fund,  less  any  amount  determined  by  the
 9    Department to be necessary for the payment of refunds. Within
10    10 days after receipt by the Comptroller of the certification
11    of  the  amount  to  be paid to the District, the Comptroller
12    shall cause an order to be drawn for payment for  the  amount
13    in accordance with the direction in the certification.
14    (Source: P.A. 91-51, eff. 6-30-99.)

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

17        (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
18        Sec. 4.03.  Taxes.
19        (a)  In  order to carry out any of the powers or purposes
20    of the Authority, the Board may by ordinance adopted with the
21    concurrence of 9 of the then Directors, impose throughout the
22    metropolitan region any or all of the taxes provided in  this
23    Section.  Except  as  otherwise  provided  in this Act, taxes
24    imposed  under  this  Section  and  civil  penalties  imposed
25    incident thereto shall be collected and enforced by the State
26    Department of Revenue. The Department shall have the power to
27    administer and enforce the taxes and to determine all  rights
28    for refunds for erroneous payments of the taxes.
29        (b)  The  Board  may  impose  a public transportation tax
30    upon all persons engaged in the metropolitan  region  in  the
31    business  of  selling  at  retail motor fuel for operation of
32    motor vehicles upon public highways. The tax shall  be  at  a
 
SB1310 Engrossed            -140-              LRB9110257SMdv
 1    rate not to exceed 5% of the gross receipts from the sales of
 2    motor  fuel  in  the course of the business.  As used in this
 3    Act, the term "motor fuel" shall have the same meaning as  in
 4    the Motor Fuel Tax Act.  The Board may provide for details of
 5    the tax.  The provisions of any tax shall conform, as closely
 6    as  may  be  practicable,  to the provisions of the Municipal
 7    Retailers Occupation Tax Act, including  without  limitation,
 8    conformity  to  penalties with respect to the tax imposed and
 9    as to the powers  of  the  State  Department  of  Revenue  to
10    promulgate  and enforce rules and regulations relating to the
11    administration and enforcement of the provisions of  the  tax
12    imposed, except that reference in the Act to any municipality
13    shall  refer  to  the  Authority and the tax shall be imposed
14    only with regard to receipts from sales of motor fuel in  the
15    metropolitan region, at rates as limited by this Section.
16        If  the Board has not imposed a tax under this subsection
17    before the effective date of this amendatory Act of the  91st
18    General  Assembly, then the Board shall not impose such a tax
19    on or after that date.  If the Board has imposed a tax  under
20    this  subsection before the effective date of this amendatory
21    Act of 91st  General  Assembly,  then  the  Board  shall  not
22    increase  the rate of the tax on or after that date. If, as a
23    result of the provisions of this amendatory Act of  the  91st
24    General  Assembly,  the  rate  of  tax imposed on the sale of
25    motor fuel and gasohol by the Retailers' Occupation  Tax  Act
26    returns to 6.25%, then the prohibition against imposing a tax
27    on  the  sale  of  motor fuel and gasohol and the prohibition
28    against an increase in the rate of any tax already imposed on
29    the sale of motor fuel and gasohol are no longer in effect.
30        (c)  In connection with the tax imposed  under  paragraph
31    (b)  of  this  Section  the  Board  may impose a tax upon the
32    privilege of using in the metropolitan region motor fuel  for
33    the  operation  of  a motor vehicle upon public highways, the
34    tax to be at a rate not in excess of the rate of tax  imposed
 
SB1310 Engrossed            -141-              LRB9110257SMdv
 1    under  paragraph  (b) of this Section.  The Board may provide
 2    for details of the tax.
 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. If, as  a
10    result  of  the provisions of this amendatory Act of the 91st
11    General Assembly, the rate of tax  imposed  on  the  sale  of
12    motor  fuel  and gasohol by the Retailers' Occupation Tax Act
13    returns to 6.25%, then the prohibition against imposing a tax
14    on the sale of motor fuel and  gasohol  and  the  prohibition
15    against an increase in the rate of any tax already imposed on
16    the sale of motor fuel and gasohol are no longer in effect.
17        (d)  The  Board  may  impose  a motor vehicle parking tax
18    upon the privilege of parking motor  vehicles  at  off-street
19    parking  facilities in the metropolitan region at which a fee
20    is charged, and may provide for reasonable classifications in
21    and exemptions to the tax, for administration and enforcement
22    thereof and for civil penalties and  refunds  thereunder  and
23    may   provide  criminal  penalties  thereunder,  the  maximum
24    penalties  not  to  exceed  the  maximum  criminal  penalties
25    provided in the Retailers' Occupation Tax Act. The  Authority
26    may  collect  and  enforce the tax itself or by contract with
27    any unit  of  local  government.   The  State  Department  of
28    Revenue  shall  have no responsibility for the collection and
29    enforcement unless the Department agrees with  the  Authority
30    to undertake the collection and enforcement.  As used in this
31    paragraph,  the  term "parking facility" means a parking area
32    or structure having parking spaces for more than  2  vehicles
33    at  which  motor vehicles are permitted to park in return for
34    an hourly, daily, or other periodic fee, whether publicly  or
 
SB1310 Engrossed            -142-              LRB9110257SMdv
 1    privately  owned,  but  does  not include parking spaces on a
 2    public street, the use  of  which  is  regulated  by  parking
 3    meters.
 4        (e)  The  Board  may  impose  a  Regional  Transportation
 5    Authority  Retailers' Occupation Tax upon all persons engaged
 6    in the business of  selling  tangible  personal  property  at
 7    retail  in  the  metropolitan region.  In Cook County the tax
 8    rate shall be 1% of the gross receipts from sales of food for
 9    human consumption that is to be  consumed  off  the  premises
10    where it is sold (other than alcoholic beverages, soft drinks
11    and  food  that  has been prepared for immediate consumption)
12    and  prescription  and  nonprescription   medicines,   drugs,
13    medical  appliances  and  insulin,  urine  testing materials,
14    syringes and needles used by diabetics, and 3/4% of the gross
15    receipts from other taxable sales made in the course of  that
16    business.  In DuPage, Kane, Lake, McHenry, and Will Counties,
17    the  tax  rate  shall  be 1/4% of the gross receipts from all
18    taxable sales made in the course of that business.   The  tax
19    imposed  under  this Section and all civil penalties that may
20    be assessed as an incident thereof  shall  be  collected  and
21    enforced  by the State Department of Revenue.  The Department
22    shall have full power to administer and enforce this Section;
23    to collect all taxes and penalties so collected in the manner
24    hereinafter provided; and to determine all rights  to  credit
25    memoranda  arising on account of the erroneous payment of tax
26    or  penalty  hereunder.   In  the  administration   of,   and
27    compliance  with this Section, the Department and persons who
28    are subject to this  Section  shall  have  the  same  rights,
29    remedies,  privileges,  immunities, powers and duties, and be
30    subject to the same  conditions,  restrictions,  limitations,
31    penalties,  exclusions,  exemptions and definitions of terms,
32    and employ the same modes of procedure, as are prescribed  in
33    Sections  1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
34    (in respect to all provisions therein other  than  the  State
 
SB1310 Engrossed            -143-              LRB9110257SMdv
 1    rate  of  tax),  2c, 3 (except as to the disposition of taxes
 2    and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e,  5f,  5g,
 3    5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13
 4    of  the  Retailers' Occupation Tax Act and Section 3-7 of the
 5    Uniform Penalty and  Interest  Act,  as  fully  as  if  those
 6    provisions were set forth herein.
 7        If  the Board has not imposed a tax under this subsection
 8    on the sale of motor fuel or  gasohol  before  the  effective
 9    date  of  this  amendatory  Act of the 91st General Assembly,
10    then the Board shall not impose such a tax on or  after  that
11    date.   If  the Board has imposed a tax under this subsection
12    on the sale of motor fuel or  gasohol  before  the  effective
13    date  of  this  amendatory  Act of the 91st General Assembly,
14    then the Board shall not increase the rate of the tax  on  or
15    after  that  date.  If, as a result of the provisions of this
16    amendatory Act of the 91st General Assembly, the rate of  tax
17    imposed  on  the  sale  of  motor  fuel  and  gasohol  by the
18    Retailers' Occupation Tax Act  returns  to  6.25%,  then  the
19    prohibition  against imposing a tax on the sale of motor fuel
20    and gasohol and the prohibition against an  increase  in  the
21    rate of any tax already imposed on the sale of motor fuel and
22    gasohol are no longer in effect.
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
 
SB1310 Engrossed            -144-              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
 
SB1310 Engrossed            -145-              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
 
SB1310 Engrossed            -146-              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. If, as a result of the
17    provisions  of  this  amendatory  Act  of  the  91st  General
18    Assembly, the rate of tax imposed on the sale of  motor  fuel
19    and  gasohol  by the Retailers' Occupation Tax Act returns to
20    6.25%, then the prohibition against imposing  a  tax  on  the
21    sale of motor fuel and gasohol and the prohibition against an
22    increase  in  the rate of any tax already imposed on the sale
23    of motor fuel and gasohol are no longer in effect.
24        Persons subject to any tax imposed  under  the  authority
25    granted  in this paragraph may reimburse themselves for their
26    serviceman's tax liability hereunder  by  separately  stating
27    the tax as an additional charge, that charge may be stated in
28    combination in a single amount with State tax that servicemen
29    are  authorized  to  collect  under  the Service Use Tax Act,
30    under any bracket schedules the Department may prescribe.
31        Whenever the Department determines that a  refund  should
32    be made under this paragraph to a claimant instead of issuing
33    a  credit  memorandum,  the Department shall notify the State
34    Comptroller, who shall cause the warrant to be drawn for  the
 
SB1310 Engrossed            -147-              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 Regional  Transportation  Authority  tax
 4    fund established under paragraph (n) of this Section.
 5        Nothing in this paragraph shall be construed to authorize
 6    the  Authority to impose a tax upon the privilege of engaging
 7    in any business that under the  Constitution  of  the  United
 8    States may not be made the subject of taxation by the State.
 9        (g)  If a tax has been imposed under paragraph (e), a tax
10    shall  also  be  imposed  upon  the privilege of using in the
11    metropolitan region, any item of tangible  personal  property
12    that  is  purchased outside the metropolitan region at retail
13    from a retailer, and that is titled  or  registered  with  an
14    agency  of  this  State's government.  In Cook County the tax
15    rate shall be 3/4% of  the  selling  price  of  the  tangible
16    personal  property,  as "selling price" is defined in the Use
17    Tax Act.  In DuPage, Kane, Lake, McHenry  and  Will  counties
18    the  tax  rate  shall  be  1/4%  of  the selling price of the
19    tangible personal property, as "selling price" is defined  in
20    the  Use  Tax  Act.   The tax shall be collected from persons
21    whose Illinois address for titling or  registration  purposes
22    is  given  as being in the metropolitan region. The tax shall
23    be collected by the Department of Revenue  for  the  Regional
24    Transportation Authority.  The tax must be paid to the State,
25    or  an  exemption  determination  must  be  obtained from the
26    Department of Revenue, before the  title  or  certificate  of
27    registration for the property may be issued. The tax or proof
28    of  exemption  may be transmitted to the Department by way of
29    the State agency with which, or the State officer with  whom,
30    the  tangible  personal property must be titled or registered
31    if the Department and  the  State  agency  or  State  officer
32    determine that this procedure will expedite the processing of
33    applications for title or registration.
34        The  Department  shall  have full power to administer and
 
SB1310 Engrossed            -148-              LRB9110257SMdv
 1    enforce this paragraph; to collect all taxes,  penalties  and
 2    interest  due  hereunder;  to dispose of taxes, penalties and
 3    interest collected in the manner hereinafter provided; and to
 4    determine all rights to credit memoranda or  refunds  arising
 5    on  account  of  the  erroneous  payment  of  tax, penalty or
 6    interest hereunder. In the administration of  and  compliance
 7    with  this  paragraph,  the  Department  and  persons who are
 8    subject  to  this  paragraph  shall  have  the  same  rights,
 9    remedies, privileges, immunities, powers and duties,  and  be
10    subject  to  the  same conditions, restrictions, limitations,
11    penalties, exclusions, exemptions and  definitions  of  terms
12    and  employ the same modes of procedure, as are prescribed in
13    Sections 2 (except the definition of "retailer maintaining  a
14    place  of  business  in  this State"), 3 through 3-80 (except
15    provisions pertaining to the State rate of  tax,  and  except
16    provisions  concerning  collection or refunding of the tax by
17    retailers), 4, 11, 12, 12a, 14, 15, 19 (except  the  portions
18    pertaining  to  claims  by  retailers  and  except  the  last
19    paragraph  concerning  refunds), 20, 21 and 22 of the Use Tax
20    Act, and are not inconsistent with this paragraph,  as  fully
21    as if those provisions were set forth herein.
22        If  the Board has not imposed a tax under this subsection
23    on the use of motor fuel or gasohol before the effective date
24    of this amendatory Act of the 91st General Assembly, then the
25    Board shall not impose such a tax on or after that date.   If
26    the  Board has imposed a tax under this subsection on the use
27    of motor fuel or gasohol before the effective  date  of  this
28    amendatory  Act  of the 91st General Assembly, then the Board
29    shall not increase the rate of the tax on or after that date.
30    If, as a result of the provisions of this amendatory  Act  of
31    the  91st  General  Assembly,  the rate of tax imposed on the
32    sale of motor fuel and gasohol by the  Retailers'  Occupation
33    Tax  Act  returns  to  6.25%,  then  the  prohibition against
34    imposing a tax on the sale of motor fuel and gasohol and  the
 
SB1310 Engrossed            -149-              LRB9110257SMdv
 1    prohibition  against  an  increase  in  the  rate  of any tax
 2    already imposed on the sale of motor fuel and gasohol are  no
 3    longer in effect.
 4        Whenever  the  Department determines that a refund should
 5    be made under this paragraph to a claimant instead of issuing
 6    a credit memorandum, the Department shall  notify  the  State
 7    Comptroller,  who  shall  cause the order to be drawn for the
 8    amount specified, and to the person named in the notification
 9    from the Department. The refund shall be paid  by  the  State
10    Treasurer  out  of  the Regional Transportation Authority tax
11    fund established under paragraph (n) of this Section.
12        (h)  The Authority may impose a replacement  vehicle  tax
13    of  $50  on  any passenger car as defined in Section 1-157 of
14    the Illinois Vehicle Code purchased within  the  metropolitan
15    region  by  or on behalf of an insurance company to replace a
16    passenger car of an insured person in settlement of  a  total
17    loss  claim.  The tax imposed may not become effective before
18    the first day of the  month  following  the  passage  of  the
19    ordinance imposing the tax and receipt of a certified copy of
20    the  ordinance  by the Department of Revenue.  The Department
21    of Revenue  shall  collect  the  tax  for  the  Authority  in
22    accordance  with  Sections  3-2002 and 3-2003 of the Illinois
23    Vehicle Code.
24        The Department shall immediately pay over  to  the  State
25    Treasurer,  ex  officio,  as  trustee,  all  taxes  collected
26    hereunder.  On or before the 25th day of each calendar month,
27    the  Department  shall prepare and certify to the Comptroller
28    the disbursement of stated sums of money  to  the  Authority.
29    The  amount  to  be paid to the Authority shall be the amount
30    collected hereunder  during  the  second  preceding  calendar
31    month  by  the  Department, less any amount determined by the
32    Department to  be  necessary  for  the  payment  of  refunds.
33    Within  10  days  after  receipt  by  the  Comptroller of the
34    disbursement certification to the Authority provided  for  in
 
SB1310 Engrossed            -150-              LRB9110257SMdv
 1    this   Section   to  be  given  to  the  Comptroller  by  the
 2    Department, the Comptroller shall  cause  the  orders  to  be
 3    drawn  for  that  amount  in  accordance  with the directions
 4    contained in the certification.
 5        (i)  The Board may not impose any other taxes  except  as
 6    it may from time to time be authorized by law to impose.
 7        (j)  A  certificate  of  registration issued by the State
 8    Department of Revenue to  a  retailer  under  the  Retailers'
 9    Occupation  Tax  Act  or under the Service Occupation Tax Act
10    shall permit the registrant to engage in a business  that  is
11    taxed under the tax imposed under paragraphs (b), (e), (f) or
12    (g)  of  this Section and no additional registration shall be
13    required under the tax.  A certificate issued under  the  Use
14    Tax  Act  or the Service Use Tax Act shall be applicable with
15    regard to  any  tax  imposed  under  paragraph  (c)  of  this
16    Section.
17        (k)  The  provisions  of  any tax imposed under paragraph
18    (c) of this Section  shall  conform  as  closely  as  may  be
19    practicable  to  the provisions of the Use Tax Act, including
20    without limitation conformity as to penalties with respect to
21    the tax imposed and as to the powers of the State  Department
22    of  Revenue  to  promulgate and enforce rules and regulations
23    relating  to  the  administration  and  enforcement  of   the
24    provisions  of  the  tax  imposed. The taxes shall be imposed
25    only on use within the metropolitan region and  at  rates  as
26    provided in the paragraph.
27        (l)  The  Board  in  imposing  any  tax  as  provided  in
28    paragraphs  (b) and (c) of this Section, shall, after seeking
29    the advice of the State Department of Revenue, provide  means
30    for retailers, users or purchasers of motor fuel for purposes
31    other  than  those  with  regard  to  which  the taxes may be
32    imposed as provided in those paragraphs to receive refunds of
33    taxes improperly paid, which provisions may  be  at  variance
34    with  the refund provisions as applicable under the Municipal
 
SB1310 Engrossed            -151-              LRB9110257SMdv
 1    Retailers  Occupation  Tax  Act.   The  State  Department  of
 2    Revenue may provide  for  certificates  of  registration  for
 3    users  or  purchasers  of  motor fuel for purposes other than
 4    those with regard to which taxes may be imposed  as  provided
 5    in  paragraphs  (b) and (c) of this Section to facilitate the
 6    reporting and nontaxability of the exempt sales or uses.
 7        (m)  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 Regional
12    Transportation Authority as of  September  1  next  following
13    such  adoption  and  filing.  Beginning  January  1, 1992, an
14    ordinance or resolution imposing  or  discontinuing  the  tax
15    hereunder shall be adopted and a certified copy thereof filed
16    with  the  Department  on  or  before  the first day of July,
17    whereupon the Department  shall  proceed  to  administer  and
18    enforce  this  Section  as  of  the first day of October next
19    following such adoption and  filing.   Beginning  January  1,
20    1993,  an  ordinance  or resolution imposing or discontinuing
21    the tax hereunder shall  be  adopted  and  a  certified  copy
22    thereof  filed with the Department on or before the first day
23    of  October,  whereupon  the  Department  shall  proceed   to
24    administer  and  enforce  this Section as of the first day of
25    January next following such adoption and filing.
26        (n)  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    Authority.  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 Authority, which shall be the then
34    balance in the  fund,  less  any  amount  determined  by  the
 
SB1310 Engrossed            -152-              LRB9110257SMdv
 1    Department  to  be  necessary for the payment of refunds. The
 2    State  Department  of  Revenue  shall  also  certify  to  the
 3    Authority the amount of taxes collected in each County  other
 4    than  Cook  County in the metropolitan region less the amount
 5    necessary for the payment of  refunds  to  taxpayers  in  the
 6    County.  With regard to the County of Cook, the certification
 7    shall  specify  the amount of taxes collected within the City
 8    of Chicago less the  amount  necessary  for  the  payment  of
 9    refunds  to  taxpayers  in the City of Chicago and the amount
10    collected in that portion of Cook County outside  of  Chicago
11    less  the  amount  necessary  for  the  payment of refunds to
12    taxpayers in that portion of Cook County outside of  Chicago.
13    Within  10  days  after  receipt  by  the  Comptroller of the
14    certification of the amount to be paid to the Authority,  the
15    Comptroller  shall cause an order to be drawn for the payment
16    for the amount  in  accordance  with  the  direction  in  the
17    certification.
18        In addition to the disbursement required by the preceding
19    paragraph,  an allocation shall be made in July 1991 and each
20    year thereafter to  the  Regional  Transportation  Authority.
21    The  allocation  shall  be  made  in  an  amount equal to the
22    average monthly distribution during  the  preceding  calendar
23    year  (excluding  the  2  months  of lowest receipts) and the
24    allocation  shall  include  the  amount  of  average  monthly
25    distribution  from  the  Regional  Transportation   Authority
26    Occupation  and  Use  Tax Replacement Fund.  The distribution
27    made in  July  1992  and  each  year  thereafter  under  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  of  Revenue  shall
31    prepare  and  certify to the Comptroller for disbursement the
32    allocations made in accordance with this paragraph.
33        (o)  Failure to adopt a budget ordinance or otherwise  to
34    comply  with Section 4.01 of this Act or to adopt a Five-year
 
SB1310 Engrossed            -153-              LRB9110257SMdv
 1    Program or otherwise to comply with paragraph (b) of  Section
 2    2.01  of  this  Act  shall not affect the validity of any tax
 3    imposed by the Authority otherwise in conformity with law.
 4        (p)  At no time shall  a  public  transportation  tax  or
 5    motor  vehicle  parking  tax authorized under paragraphs (b),
 6    (c) and (d) of this Section be in effect at the same time  as
 7    any  retailers'  occupation,  use  or  service occupation tax
 8    authorized under paragraphs (e), (f) and (g) of this  Section
 9    is in effect.
10        Any   taxes  imposed  under  the  authority  provided  in
11    paragraphs (b), (c) and (d) shall remain in effect only until
12    the time as any tax authorized by paragraphs (e), (f) or  (g)
13    of  this  Section are imposed and becomes effective. Once any
14    tax authorized by paragraphs (e), (f) or (g) is  imposed  the
15    Board may not reimpose taxes as authorized in paragraphs (b),
16    (c)  and  (d)  of  the  Section  unless any tax authorized by
17    paragraphs  (e),  (f)  or  (g)  of   this   Section   becomes
18    ineffective by means other than an ordinance of the Board.
19        (q)  Any   existing   rights,  remedies  and  obligations
20    (including  enforcement  by   the   Regional   Transportation
21    Authority)  arising  under  any  tax imposed under paragraphs
22    (b), (c) or (d) of this Section shall not be affected by  the
23    imposition  of a tax under paragraphs (e), (f) or (g) of this
24    Section.
25    (Source: P.A. 91-51, eff. 6-30-99.)

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

28        (70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
29        Sec. 4.  Taxes.
30        (a)  The  board  of  commissioners  of  any  county water
31    commission may, by ordinance, impose throughout the territory
32    of the commission any or all of the taxes  provided  in  this
 
SB1310 Engrossed            -154-              LRB9110257SMdv
 1    Section  for its corporate purposes. However, no county water
 2    commission may impose any  such  tax  unless  the  commission
 3    certifies  the  proposition of imposing the tax to the proper
 4    election officials, who shall submit the proposition  to  the
 5    voters residing in the territory at an election in accordance
 6    with  the  general election law, and the proposition has been
 7    approved by a majority of those voting on the proposition.
 8        The proposition shall be in the form provided in  Section
 9    5 or shall be substantially in the following form:
10    -------------------------------------------------------------
11        Shall the (insert corporate
12    name of county water commission)           YES
13    impose (state type of tax or         ------------------------
14    taxes to be imposed) at the                NO
15    rate of 1/4%?
16    -------------------------------------------------------------
17        Taxes  imposed  under  this  Section  and civil penalties
18    imposed incident thereto shall be collected and  enforced  by
19    the  State  Department  of Revenue. The Department shall have
20    the  power  to  administer  and  enforce  the  taxes  and  to
21    determine all rights for refunds for  erroneous  payments  of
22    the taxes.
23        (b)  The board of commissioners may impose a County Water
24    Commission Retailers' Occupation Tax upon all persons engaged
25    in  the  business  of  selling  tangible personal property at
26    retail in the territory of the commission at a rate  of  1/4%
27    of  the  gross  receipts from the sales made in the course of
28    such business within the territory.  The  tax  imposed  under
29    this  paragraph  and all civil penalties that may be assessed
30    as an incident thereof shall be collected and enforced by the
31    State Department of Revenue. The Department shall  have  full
32    power  to  administer  and enforce this paragraph; to collect
33    all taxes and penalties due hereunder; to  dispose  of  taxes
34    and   penalties   so  collected  in  the  manner  hereinafter
 
SB1310 Engrossed            -155-              LRB9110257SMdv
 1    provided; and to determine all  rights  to  credit  memoranda
 2    arising on account of the erroneous payment of tax or penalty
 3    hereunder.   In  the  administration of, and compliance with,
 4    this paragraph, the Department and persons who are subject to
 5    this  paragraph  shall  have  the  same   rights,   remedies,
 6    privileges,  immunities, powers and duties, and be subject to
 7    the same conditions,  restrictions,  limitations,  penalties,
 8    exclusions,  exemptions  and definitions of terms, and employ
 9    the same modes of procedure, as are prescribed in Sections 1,
10    1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (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    medicine,   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), 2c, 3
19    (except  as  to  the  disposition  of  taxes  and   penalties
20    collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
21    5l,  6,  6a,  6b,  6c,  7,  8,  9,  10,  11, 12 and 13 of the
22    Retailers' 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        If the board of commissioners has not imposed a tax under
26    this subsection on the sale of motor fuel or  gasohol  before
27    the effective date of this amendatory Act of the 91st General
28    Assembly,  then  the  board shall not impose such a tax on or
29    after that date.  If the board of commissioners has imposed a
30    tax under this subsection  on  the  sale  of  motor  fuel  or
31    gasohol  before  the effective date of this amendatory Act of
32    the 91st General Assembly, then the board shall not  increase
33    the rate of the tax on or after that date. If, as a result of
34    the  provisions  of  this  amendatory Act of the 91st General
 
SB1310 Engrossed            -156-              LRB9110257SMdv
 1    Assembly, the rate of tax imposed on the sale of  motor  fuel
 2    and  gasohol  by the Retailers' Occupation Tax Act returns to
 3    6.25%, then the prohibition against imposing  a  tax  on  the
 4    sale of motor fuel and gasohol and the prohibition against an
 5    increase  in  the rate of any tax already imposed on the sale
 6    of motor fuel and gasohol are no longer in effect.
 7        Persons subject to any tax imposed  under  the  authority
 8    granted  in this paragraph may reimburse themselves for their
 9    seller's tax liability hereunder by  separately  stating  the
10    tax  as  an  additional charge, which charge may be stated in
11    combination, in  a  single  amount,  with  State  taxes  that
12    sellers  are  required  to  collect under the Use Tax Act and
13    under  subsection  (e)  of  Section  4.03  of  the   Regional
14    Transportation Authority Act, in accordance with such bracket
15    schedules as the Department may prescribe.
16        Whenever  the  Department determines that a refund should
17    be made under this paragraph to a claimant instead of issuing
18    a credit memorandum, the Department shall  notify  the  State
19    Comptroller,  who shall cause the warrant to be drawn for the
20    amount  specified,  and  to  the   person   named,   in   the
21    notification  from  the Department.  The refund shall be paid
22    by the State Treasurer out of a county water  commission  tax
23    fund established under paragraph (g) of this Section.
24        For  the  purpose of determining whether a tax authorized
25    under this paragraph  is  applicable,  a  retail  sale  by  a
26    producer of coal or other mineral mined in Illinois is a sale
27    at  retail at the place where the coal or other mineral mined
28    in Illinois is extracted from the earth.  This paragraph does
29    not apply to coal or other mineral when it  is  delivered  or
30    shipped  by  the  seller  to the purchaser at a point outside
31    Illinois so  that  the  sale  is  exempt  under  the  Federal
32    Constitution as a sale in interstate or foreign commerce.
33        If a tax is imposed under this subsection (b) a tax shall
34    also  be  imposed  under  subsections  (c)  and  (d)  of this
 
SB1310 Engrossed            -157-              LRB9110257SMdv
 1    Section.
 2        Nothing in this paragraph shall be construed to authorize
 3    a county water commission to impose a tax upon the  privilege
 4    of  engaging  in any business which under the Constitution of
 5    the United States may not be made the subject of taxation  by
 6    this State.
 7        (c)  If  a  tax  has been imposed under subsection (b), a
 8    tax shall also be imposed upon all persons  engaged,  in  the
 9    territory  of the commission, in the business of making sales
10    of service, who, as  an  incident  to  making  the  sales  of
11    service,  transfer  tangible  personal  property  within  the
12    territory. The tax rate shall be 1/4% of the selling price of
13    tangible   personal   property   so  transferred  within  the
14    territory.  The tax imposed  under  this  paragraph  and  all
15    civil  penalties  that may be assessed as an incident thereof
16    shall be collected and enforced by the  State  Department  of
17    Revenue.  The  Department shall have full power to administer
18    and  enforce  this  paragraph;  to  collect  all  taxes   and
19    penalties due hereunder; to dispose of taxes and penalties so
20    collected   in   the  manner  hereinafter  provided;  and  to
21    determine all rights to credit memoranda arising  on  account
22    of the erroneous payment of tax or penalty hereunder.  In the
23    administration  of,  and compliance with, this paragraph, the
24    Department and persons who  are  subject  to  this  paragraph
25    shall have the same rights, remedies, privileges, immunities,
26    powers  and  duties,  and  be subject to the same conditions,
27    restrictions, limitations, penalties, exclusions,  exemptions
28    and  definitions  of  terms,  and  employ  the  same modes of
29    procedure, as are prescribed in Sections 1a-1, 2 (except that
30    the  reference  to  State  in  the  definition  of   supplier
31    maintaining  a place of business in this State shall mean the
32    territory of the commission), 2a, 3 through 3-50 (in  respect
33    to  all  provisions  therein other than the State rate of tax
34    except that food for human consumption that is to be consumed
 
SB1310 Engrossed            -158-              LRB9110257SMdv
 1    off the premises where  it  is  sold  (other  than  alcoholic
 2    beverages,  soft  drinks, and food that has been prepared for
 3    immediate consumption) and prescription  and  nonprescription
 4    medicines,  drugs,  medical  appliances  and  insulin,  urine
 5    testing  materials,  syringes, and needles used by diabetics,
 6    for human use, shall not be  subject  to  tax  hereunder),  4
 7    (except  that  the  reference  to  the  State shall be to the
 8    territory of the  commission),  5,  7,  8  (except  that  the
 9    jurisdiction  to  which the tax shall be a debt to the extent
10    indicated in that Section  8  shall  be  the  commission),  9
11    (except   as  to  the  disposition  of  taxes  and  penalties
12    collected and except that the returned merchandise credit for
13    this tax may not be taken against any State tax), 10, 11,  12
14    (except the reference therein to Section 2b of the Retailers'
15    Occupation  Tax  Act),  13  (except that any reference to the
16    State shall mean the territory of the commission), the  first
17    paragraph  of  Section 15, 15.5, 16, 17, 18, 19 and 20 of the
18    Service Occupation Tax Act as fully as  if  those  provisions
19    were set forth herein.
20        If the board of commissioners has not imposed a tax under
21    this subsection on the selling price of motor fuel or gasohol
22    before  the effective date of this amendatory Act of the 91st
23    General Assembly, then the board shall not impose such a  tax
24    on  or  after  that  date.  If the board of commissioners has
25    imposed a tax under this subsection on the selling  price  of
26    motor  fuel  or  gasohol  before  the  effective date of this
27    amendatory Act of the 91st General Assembly, then  the  board
28    shall not increase the rate of the tax on or after that date.
29    If,  as  a result of the provisions of this amendatory Act of
30    the 91st General Assembly, the rate of  tax  imposed  on  the
31    sale  of  motor fuel and gasohol by the Retailers' Occupation
32    Tax Act  returns  to  6.25%,  then  the  prohibition  against
33    imposing  a tax on the sale of motor fuel and gasohol and the
34    prohibition against an  increase  in  the  rate  of  any  tax
 
SB1310 Engrossed            -159-              LRB9110257SMdv
 1    already  imposed on the sale of motor fuel and gasohol are no
 2    longer in effect.
 3        Persons subject to any tax imposed  under  the  authority
 4    granted  in this paragraph may reimburse themselves for their
 5    serviceman's tax liability hereunder  by  separately  stating
 6    the  tax  as an additional charge, which charge may be stated
 7    in combination, in a  single  amount,  with  State  tax  that
 8    servicemen  are  authorized  to collect under the Service Use
 9    Tax Act, and any tax for which servicemen may be liable under
10    subsection (f) of  Sec. 4.03 of the  Regional  Transportation
11    Authority  Act,  in accordance with such bracket schedules as
12    the Department may prescribe.
13        Whenever the Department determines that a  refund  should
14    be made under this paragraph to a claimant instead of issuing
15    a  credit  memorandum,  the Department shall notify the State
16    Comptroller, who shall cause the warrant to be drawn for  the
17    amount   specified,   and   to   the  person  named,  in  the
18    notification from the Department.  The refund shall  be  paid
19    by  the  State Treasurer out of a county water commission tax
20    fund established under paragraph (g) of this Section.
21        Nothing in this paragraph shall be construed to authorize
22    a county water commission to impose a tax upon the  privilege
23    of  engaging  in any business which under the Constitution of
24    the United States may not be made the subject of taxation  by
25    the State.
26        (d)  If  a  tax  has been imposed under subsection (b), a
27    tax shall also imposed upon the privilege of  using,  in  the
28    territory  of  the  commission, any item of tangible personal
29    property that is purchased outside the  territory  at  retail
30    from  a  retailer,  and  that is titled or registered with an
31    agency of this State's government, at a rate of 1/4%  of  the
32    selling  price  of  the tangible personal property within the
33    territory, as "selling price" is defined in the Use Tax  Act.
34    The  tax  shall  be  collected  from  persons  whose Illinois
 
SB1310 Engrossed            -160-              LRB9110257SMdv
 1    address for titling or  registration  purposes  is  given  as
 2    being  in  the  territory.  The tax shall be collected by the
 3    Department of Revenue for a county water commission.  The tax
 4    must be paid to the State, or an exemption determination must
 5    be obtained from the Department of Revenue, before the  title
 6    or  certificate  of  registration  for  the  property  may be
 7    issued. The tax or proof of exemption may be  transmitted  to
 8    the  Department by way of the State agency with which, or the
 9    State officer with whom, the tangible personal property  must
10    be  titled  or  registered  if  the  Department and the State
11    agency or State officer determine that  this  procedure  will
12    expedite   the   processing  of  applications  for  title  or
13    registration.
14        The Department shall have full power  to  administer  and
15    enforce  this  paragraph; to collect all taxes, penalties and
16    interest due hereunder; to dispose of  taxes,  penalties  and
17    interest so collected in the manner hereinafter provided; and
18    to  determine  all  rights  to  credit  memoranda  or refunds
19    arising on account of the erroneous payment of  tax,  penalty
20    or   interest   hereunder.  In  the  administration  of,  and
21    compliance with this paragraph, the  Department  and  persons
22    who are subject to this paragraph shall have the same rights,
23    remedies,  privileges,  immunities, powers and duties, and be
24    subject to the same  conditions,  restrictions,  limitations,
25    penalties,  exclusions,  exemptions  and definitions of terms
26    and employ the same modes of procedure, as are prescribed  in
27    Sections  2 (except the definition of "retailer maintaining a
28    place of business in this State"),  3  through  3-80  (except
29    provisions  pertaining  to  the State rate of tax, and except
30    provisions concerning collection or refunding of the  tax  by
31    retailers, and except that food for human consumption that is
32    to  be consumed off the premises where it is sold (other than
33    alcoholic beverages, soft drinks,  and  food  that  has  been
34    prepared  for  immediate  consumption)  and  prescription and
 
SB1310 Engrossed            -161-              LRB9110257SMdv
 1    nonprescription  medicines,  drugs,  medical  appliances  and
 2    insulin, urine testing materials, syringes, and needles  used
 3    by  diabetics,  for  human  use,  shall not be subject to tax
 4    hereunder), 4, 11, 12, 12a, 14, 15, 19 (except  the  portions
 5    pertaining  to  claims  by  retailers  and  except  the  last
 6    paragraph  concerning  refunds), 20, 21 and 22 of the Use Tax
 7    Act and Section 3-7 of the Uniform Penalty and  Interest  Act
 8    that are not inconsistent with this paragraph, as fully as if
 9    those provisions were set forth herein.
10        If the board of commissioners has not imposed a tax under
11    this  subsection  on  the use 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 use of motor fuel or gasohol
16    before  the effective date of this amendatory Act of the 91st
17    General Assembly, then the board shall not increase the  rate
18    of  the  tax  on  or  after that date. If, as a result of the
19    provisions  of  this  amendatory  Act  of  the  91st  General
20    Assembly, the rate of tax imposed on the sale of  motor  fuel
21    and  gasohol  by the Retailers' Occupation Tax Act returns to
22    6.25%, then the prohibition against imposing  a  tax  on  the
23    sale of motor fuel and gasohol and the prohibition against an
24    increase  in  the rate of any tax already imposed on the sale
25    of motor fuel and gasohol are no longer in effect.
26        Whenever the Department determines that a  refund  should
27    be made under this paragraph to a claimant instead of issuing
28    a  credit  memorandum,  the Department shall notify the State
29    Comptroller, who shall cause the order to be  drawn  for  the
30    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 a county water commission tax
33    fund established under paragraph (g) of this Section.
34        (e)  A certificate of registration issued  by  the  State
 
SB1310 Engrossed            -162-              LRB9110257SMdv
 1    Department  of  Revenue  to  a  retailer under the Retailers'
 2    Occupation Tax Act or under the Service  Occupation  Tax  Act
 3    shall  permit  the registrant to engage in a business that is
 4    taxed under the tax imposed under paragraphs (b), (c) or  (d)
 5    of  this  Section  and  no  additional  registration shall be
 6    required under the tax.  A certificate issued under  the  Use
 7    Tax  Act  or the Service Use Tax Act shall be applicable with
 8    regard to  any  tax  imposed  under  paragraph  (c)  of  this
 9    Section.
10        (f)  Any  ordinance  imposing  or  discontinuing  any tax
11    under this Section shall be  adopted  and  a  certified  copy
12    thereof  filed  with  the  Department  on  or  before June 1,
13    whereupon  the  Department  of  Revenue  shall   proceed   to
14    administer  and  enforce this Section on behalf of the county
15    water  commission  as  of  September  1  next  following  the
16    adoption and filing.  Beginning January 1, 1992, an ordinance
17    or resolution imposing or  discontinuing  the  tax  hereunder
18    shall  be adopted and a certified copy thereof filed with the
19    Department on or before the first day of July, whereupon  the
20    Department  shall  proceed  to  administer  and  enforce this
21    Section as of the first day of October  next  following  such
22    adoption and filing.  Beginning January 1, 1993, an ordinance
23    or  resolution  imposing  or  discontinuing the tax hereunder
24    shall be adopted and a certified copy thereof filed with  the
25    Department  on  or before the first day of October, whereupon
26    the Department shall proceed to administer and  enforce  this
27    Section  as  of  the first day of January next following such
28    adoption and filing.
29        (g)  The  State  Department  of   Revenue   shall,   upon
30    collecting  any  taxes  as  provided in this Section, pay the
31    taxes  over  to  the  State  Treasurer  as  trustee  for  the
32    commission. The taxes shall be held in a trust  fund  outside
33    the  State  Treasury.  On  or  before  the  25th  day of each
34    calendar month, the State Department of Revenue shall prepare
 
SB1310 Engrossed            -163-              LRB9110257SMdv
 1    and certify to the Comptroller of the State of  Illinois  the
 2    amount  to be paid to the commission, which shall be the then
 3    balance in the  fund,  less  any  amount  determined  by  the
 4    Department to be necessary for the payment of refunds. Within
 5    10 days after receipt by the Comptroller of the certification
 6    of  the  amount to be paid to the commission, the Comptroller
 7    shall cause an order to be drawn  for  the  payment  for  the
 8    amount in accordance with the direction in the certification.
 9    (Source: P.A. 91-51, eff. 6-30-99.)

10        Section  99.  Effective date.  This Act takes effect upon
11    becoming law, except that Sections 5 through 20  take  effect
12    October 1, 2000.

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