SB0230 Enrolled

LRB096 08382 RLJ 18494 b






1
    AN ACT concerning local government.

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


 
4
    Section 5. The Counties Code is amended  by changing Section 
5
5-1006.5 as follows:
 



6
    (55 ILCS 5/5-1006.5)


7
    Sec. 5-1006.5. Special County Retailers' Occupation Tax

8
For Public Safety, Public Facilities, or Transportation.
9
    (a) The county board of any county may impose a
tax upon 
10
all persons engaged in the business of selling tangible 
11
personal
property, other than personal property titled or 
12
registered with an agency of
this State's government, at retail 
13
in the county on the gross receipts from the
sales made in the 
14
course of business to provide revenue to be used exclusively

15
for public safety, public facility, or transportation purposes 
16
in that county, if a
proposition for the
tax has been submitted 
17
to the electors of that county and
approved by a majority of 
18
those voting on the question.  If imposed, this tax
shall be 
19
imposed only in one-quarter percent increments. By resolution, 
20
the
county board may order the proposition to be submitted at 
21
any election.
If the tax is imposed for
transportation purposes 
22
for expenditures for public highways or as
authorized
under the 
23
Illinois Highway Code, the county board must publish notice
of 
 


 






SB0230 Enrolled
- 2 -
LRB096 08382 RLJ 18494 b




1
the existence of its long-range highway transportation
plan as 
2
required or described in Section 5-301 of the Illinois
Highway 
3
Code and must make the plan publicly available prior to

4
approval of the ordinance or resolution
imposing the tax. If 
5
the tax is imposed for transportation purposes for
expenditures 
6
for passenger rail transportation, the county board must 
7
publish
notice of the existence of its long-range passenger 
8
rail transportation plan
and
must make the plan publicly 
9
available prior to approval of the ordinance or
resolution 
10
imposing the tax. The county clerk shall certify the
question 
11
to the proper election authority, who
shall submit the 
12
proposition at an election in accordance with the general

13
election law.


14
        (1) The proposition for public safety purposes shall be 
15
    in
substantially the following form:
16
        "To pay for public safety purposes, shall (name of 
17
    county) be authorized to impose an increase on its share of 
18
    local sales taxes by (insert rate)?"
19
        As additional information on the ballot below the 
20
    question shall appear the following:
21
        "This would mean that a consumer would pay an 
22
    additional (insert amount) in sales tax for every $100 of 
23
    tangible personal property bought at retail."


24
        The county board may also opt to establish a sunset 
25
    provision at which time the additional sales tax would 
26
    cease being collected, if not terminated earlier by a vote 
 


 






SB0230 Enrolled
- 3 -
LRB096 08382 RLJ 18494 b




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



16
        For the purposes of the
paragraph, "public safety 
17
    purposes" means
crime prevention, detention, fire 
18
    fighting, police, medical, ambulance, or
other emergency 
19
    services.


20
        Votes shall be recorded as "Yes" or "No".


21
        (2) The proposition for transportation purposes shall 
22
    be in
substantially
the following form:
23
        "To pay for improvements to roads and other 
24
    transportation purposes, shall (name of county) be 
25
    authorized to impose an increase on its share of local 
26
    sales taxes by (insert rate)?"
 


 






SB0230 Enrolled
- 4 -
LRB096 08382 RLJ 18494 b




1
        As additional information on the ballot below the 
2
    question shall appear the following:
3
        "This would mean that a consumer would pay an 
4
    additional (insert amount) in sales tax for every $100 of 
5
    tangible personal property bought at retail."


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



24
        For the purposes of this paragraph, transportation 
25
    purposes means
construction, maintenance, operation, and 
26
    improvement of
public highways, any other purpose for which 
 


 






SB0230 Enrolled
- 5 -
LRB096 08382 RLJ 18494 b




1
    a county may expend funds under
the Illinois Highway Code, 
2
    and passenger rail transportation.


3
        The votes shall be recorded as "Yes" or "No".

4
        (3)  The proposition for public facility purposes shall 
5
    be in substantially the following form: 
6
        "To pay for public facility purposes, shall (name of

    
7
    county) be authorized to impose an increase on its share of

    
8
    local sales taxes by (insert rate)?" 
9
        As additional information on the ballot below the

    
10
    question shall appear the following: 
11
        "This would mean that a consumer would pay an

    
12
    additional (insert amount) in sales tax for every $100 of

    
13
    tangible personal property bought at retail." 
14
        The county board may also opt to establish a sunset

    
15
    provision at which time the additional sales tax would

    
16
    cease being collected, if not terminated earlier by a vote

    
17
    of the county board. If the county board votes to include a

    
18
    sunset provision, the proposition for public facility

    
19
    purposes shall be in substantially the following form: 
20
        "To pay for public facility purposes, shall (name of

    
21
    county) be authorized to impose an increase on its share of

    
22
    local sales taxes by (insert rate) for a period not to

    
23
    exceed (insert number of years)?" 
24
        As additional information on the ballot below the

    
25
    question shall appear the following: 
26
        "This would mean that a consumer would pay an

    
 


 






SB0230 Enrolled
- 6 -
LRB096 08382 RLJ 18494 b




1
    additional (insert amount) in sales tax for every $100 of

    
2
    tangible personal property bought at retail. If imposed,

    
3
    the additional tax would cease being collected at the end

    
4
    of (insert number of years), if not terminated earlier by a

    
5
    vote of the county board." 
6
        For purposes of this Section, "public facilities 
7
    purposes" means the acquisition, development, 
8
    construction, reconstruction, rehabilitation, improvement, 
9
    financing, architectural planning, and installation of 
10
    capital facilities consisting of buildings, structures, 
11
    and durable equipment and for the acquisition and 
12
    improvement of real property and interest in real property 
13
    required, or expected to be required, in connection with 
14
    the public facilities, for use by the county for the 
15
    furnishing of governmental services to its citizens, 
16
    including but not limited to museums and nursing homes. 
17
        The votes shall be recorded as "Yes" or "No". 
18
    If a majority of the electors voting on
the proposition 
19
vote in favor of it, the county may impose the tax.
 A county 
20
may not submit more than one proposition authorized by this 
21
Section
to the electors at any one time.

22
    This additional tax may not be imposed on the sales of food 
23
for human
consumption that is to be consumed off the premises 
24
where it is sold (other
than alcoholic beverages, soft drinks, 
25
and food which has been prepared for
immediate consumption) and 
26
prescription and non-prescription medicines, drugs,
medical 
 


 






SB0230 Enrolled
- 7 -
LRB096 08382 RLJ 18494 b




1
appliances and insulin, urine testing materials, syringes, and 
2
needles
used by diabetics.  The tax imposed by a county under 
3
this Section and
all civil penalties that may be assessed as an 
4
incident of the tax shall be
collected and enforced by the 
5
Illinois Department of Revenue and deposited
into a special 
6
fund created for that purpose.  The certificate
of registration 
7
that is issued by the Department to a retailer under the

8
Retailers' Occupation Tax Act shall permit the retailer to 
9
engage in a business
that is taxable without registering 
10
separately with the Department under an
ordinance or resolution 
11
under this Section.  The Department has full
power to administer 
12
and enforce this Section, to collect all taxes and
penalties 
13
due under this Section, to dispose of taxes and penalties so

14
collected in the manner provided in this Section, and to 
15
determine
all rights to credit memoranda arising on account of 
16
the erroneous payment of
a tax or penalty under this Section.  
17
In the administration of and compliance
with this Section, the 
18
Department and persons who are subject to this Section
shall 
19
(i) have the same rights, remedies, privileges, immunities, 
20
powers, and
duties, (ii) be subject to the same conditions, 
21
restrictions, limitations,
penalties, and definitions of 
22
terms, and (iii) employ the same modes of
procedure as are 
23
prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f,
1i, 1j,
1k, 1m, 
24
1n,
2 through 2-70 (in respect to all provisions contained in 
25
those Sections
other than the
State rate of tax), 2a, 2b, 2c, 3 
26
(except provisions
relating to
transaction returns and quarter 
 


 






SB0230 Enrolled
- 8 -
LRB096 08382 RLJ 18494 b




1
monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e,
5f,
5g, 5h, 5i, 
2
5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of 
3
the
Retailers' Occupation Tax Act and Section 3-7 of the 
4
Uniform Penalty and
Interest Act as if those provisions were 
5
set forth in this Section.

6
    Persons subject to any tax imposed under the authority 
7
granted in this
Section may reimburse themselves for their 
8
sellers' tax liability by
separately stating the tax as an 
9
additional charge, which charge may be stated
in combination, 
10
in a single amount, with State tax which sellers are required

11
to collect under the Use Tax Act, pursuant to such bracketed 
12
schedules as the
Department may prescribe.

13
    Whenever the Department determines that a refund should be 
14
made under this
Section to a claimant instead of issuing a 
15
credit memorandum, the Department
shall notify the State 
16
Comptroller, who shall cause the order to be drawn for
the 
17
amount specified and to the person named in the notification 
18
from the
Department.  The refund shall be paid by the State 
19
Treasurer out of the County
Public Safety or Transportation 
20
Retailers' Occupation Tax Fund.

21
    (b) If a tax has been imposed under subsection (a), a

22
service occupation tax shall
also be imposed at the same rate 
23
upon all persons engaged, in the county, in
the business
of 
24
making sales of service, who, as an incident to making those 
25
sales of
service, transfer tangible personal property within 
26
the county
as an
incident to a sale of service.
This tax may 
 


 






SB0230 Enrolled
- 9 -
LRB096 08382 RLJ 18494 b




1
not be imposed on sales of food for human consumption that is 
2
to
be consumed off the premises where it is sold (other than 
3
alcoholic beverages,
soft drinks, and food prepared for 
4
immediate consumption) and prescription and
non-prescription 
5
medicines, drugs, medical appliances and insulin, urine

6
testing materials, syringes, and needles used by diabetics.
The 
7
tax imposed under this subsection and all civil penalties that 
8
may be
assessed as an incident thereof shall be collected and 
9
enforced by the
Department of Revenue. The Department has
full 
10
power to
administer and enforce this subsection; to collect all 
11
taxes and penalties
due hereunder; to dispose of taxes and 
12
penalties so collected in the manner
hereinafter provided; and 
13
to determine all rights to credit memoranda
arising on account 
14
of the erroneous payment of tax or penalty hereunder.
In the 
15
administration of, and compliance with this subsection, the

16
Department and persons who are subject to this paragraph shall 
17
(i) have the
same rights, remedies, privileges, immunities, 
18
powers, and duties, (ii) be
subject to the same conditions, 
19
restrictions, limitations, penalties,
exclusions, exemptions, 
20
and definitions of terms, and (iii) employ the same
modes
of 
21
procedure as are prescribed in Sections 2 (except that the

22
reference to State in the definition of supplier maintaining a 
23
place of
business in this State shall mean the county), 2a, 2b, 
24
2c, 3 through
3-50 (in respect to all provisions therein other 
25
than the State rate of
tax), 4 (except that the reference to 
26
the State shall be to the county),
5, 7, 8 (except that the 
 


 






SB0230 Enrolled
- 10 -
LRB096 08382 RLJ 18494 b




1
jurisdiction to which the tax shall be a debt to
the extent 
2
indicated in that Section 8 shall be the county), 9 (except as

3
to the disposition of taxes and penalties collected), 10, 11, 
4
12 (except the reference therein to Section 2b of the

5
Retailers' Occupation Tax Act), 13 (except that any reference 
6
to the State
shall mean the county), Section 15, 16,
17, 18, 19 
7
and 20 of the Service Occupation Tax Act and Section 3-7 of
the 
8
Uniform Penalty and Interest Act, as fully as if those 
9
provisions were
set forth herein.

10
    Persons subject to any tax imposed under the authority 
11
granted in
this subsection may reimburse themselves for their 
12
serviceman's tax liability
by separately stating the tax as an 
13
additional charge, which
charge may be stated in combination, 
14
in a single amount, with State tax
that servicemen are 
15
authorized to collect under the Service Use Tax Act, in

16
accordance with such bracket schedules as the Department may 
17
prescribe.

18
    Whenever the Department determines that a refund should be 
19
made under this
subsection to a claimant instead of issuing a 
20
credit memorandum, the Department
shall notify the State 
21
Comptroller, who shall cause the warrant to be drawn
for the 
22
amount specified, and to the person named, in the notification

23
from the Department.  The refund shall be paid by the State 
24
Treasurer out
of the County Public Safety or Transportation 
25
Retailers' Occupation Fund.

26
    Nothing in this subsection shall be construed to authorize 
 


 






SB0230 Enrolled
- 11 -
LRB096 08382 RLJ 18494 b




1
the county
to impose a tax upon the privilege of engaging in 
2
any business which under
the Constitution of the United States 
3
may not be made the subject of taxation
by the State.

4
    (c) The Department shall immediately pay over to the State 
5
Treasurer, ex
officio,
as trustee, all taxes and penalties 
6
collected under this Section to be
deposited into the County 
7
Public Safety or Transportation Retailers'
Occupation Tax 
8
Fund, which
shall be an unappropriated trust fund held outside 
9
of the State treasury.  On
or before the 25th
day of each 
10
calendar month, the Department shall prepare and certify to the

11
Comptroller the disbursement of stated sums of money
to the 
12
counties from which retailers have paid
taxes or penalties to 
13
the Department during the second preceding
calendar month.  The 
14
amount to be paid to each county, and deposited by the
county 
15
into its special fund created for the purposes of this Section, 
16
shall
be the amount (not
including credit memoranda) collected 
17
under this Section during the second
preceding
calendar month 
18
by the Department plus an amount the Department determines is

19
necessary to offset any amounts that were erroneously paid to a 
20
different
taxing body, and not including (i) an amount equal to 
21
the amount of refunds
made
during the second preceding calendar 
22
month by the Department on behalf of
the county and (ii) any 
23
amount that the Department determines is
necessary to offset 
24
any amounts that were payable to a different taxing body
but 
25
were erroneously paid to the county.  Within 10 days after 
26
receipt by the
Comptroller of the disbursement certification to 
 


 






SB0230 Enrolled
- 12 -
LRB096 08382 RLJ 18494 b




1
the counties provided for in
this Section to be given to the 
2
Comptroller by the Department, the Comptroller
shall cause the 
3
orders to be drawn for the respective amounts in accordance

4
with directions contained in the certification.

5
    In addition to the disbursement required by the preceding 
6
paragraph, an
allocation shall be made in March of each year to 
7
each county that received
more than $500,000 in disbursements 
8
under the preceding paragraph in the
preceding calendar year.  
9
The allocation shall be in an amount equal to the
average 
10
monthly distribution made to each such county under the 
11
preceding
paragraph during the preceding calendar year 
12
(excluding the 2 months of
highest receipts).  The distribution 
13
made in March of each year subsequent to
the year in which an 
14
allocation was made pursuant to this paragraph and the

15
preceding paragraph shall be reduced by the amount allocated 
16
and disbursed
under this paragraph in the preceding calendar 
17
year.  The Department shall
prepare and certify to the 
18
Comptroller for disbursement the allocations made in

19
accordance with this paragraph.

20
    (d) For the purpose of determining the local governmental 
21
unit whose tax is
applicable, a retail sale by a producer of 
22
coal or another mineral mined in
Illinois is a sale at retail 
23
at the place where the coal or other mineral mined
in Illinois 
24
is extracted from the earth.  This paragraph does not apply to 
25
coal
or another mineral when it is delivered or shipped by the 
26
seller to the
purchaser
at a point outside Illinois so that the 
 


 






SB0230 Enrolled
- 13 -
LRB096 08382 RLJ 18494 b




1
sale is exempt under the United States
Constitution as a sale 
2
in interstate or foreign commerce.

3
    (e) Nothing in this Section shall be construed to authorize 
4
a county to
impose a
tax upon the privilege of engaging in any 
5
business that under the Constitution
of the United States may 
6
not be made the subject of taxation by this State.

7
    (e-5) If a county imposes a tax under this Section, the 
8
county board may,
by ordinance, discontinue or lower the rate 
9
of the tax.  If the county board
lowers the tax rate or 
10
discontinues the tax, a referendum must be
held in accordance 
11
with subsection (a) of this Section in order to increase the

12
rate of the tax or to reimpose the discontinued tax.

13
    (f) Beginning April 1, 1998, the results of any election 
14
authorizing a
proposition to impose a tax
under this Section or 
15
effecting a change in the rate of tax, or any ordinance

16
lowering the rate or discontinuing the tax,
shall be certified

17
by the
county clerk and filed with the Illinois Department of 
18
Revenue
either (i) on or
before the first day of April, 
19
whereupon the Department shall proceed to
administer and 
20
enforce the tax as of the first day of July next following
the 
21
filing; or (ii)
on or before the first day of October, 
22
whereupon the
Department shall proceed to administer and 
23
enforce the tax as of the first
day of January next following 
24
the filing.

25
    (g) When certifying the amount of a monthly disbursement to 
26
a county under
this
Section, the Department shall increase or 
 


 






SB0230 Enrolled
- 14 -
LRB096 08382 RLJ 18494 b




1
decrease the amounts by an amount
necessary to offset any 
2
miscalculation of previous disbursements.  The offset
amount 
3
shall be the amount erroneously disbursed within the previous 6 
4
months
from the time a miscalculation is discovered.

5
    (h) This Section may be cited as the "Special County 
6
Occupation Tax
For Public Safety, Public Facilities, or 
7
Transportation Law".

8
    (i) For purposes of this Section, "public safety" includes, 
9
but is not
limited to, crime prevention, detention, fire 
10
fighting, police, medical,
ambulance, or other emergency

11
services.  The county may share tax proceeds received under this 
12
Section for public safety purposes, including proceeds 
13
received before the effective date of this amendatory Act of 
14
the 96th General Assembly,  with any fire protection district 
15
located in the county. For the purposes of this Section, 
16
"transportation" includes, but
is not limited to, the 
17
construction,
maintenance, operation, and improvement of 
18
public highways, any other
purpose for which a county may 
19
expend funds under the Illinois Highway Code,
and passenger 
20
rail transportation. For the purposes of this Section, "public 
21
facilities purposes" includes, but is not limited to, the 
22
acquisition, development, construction, reconstruction, 
23
rehabilitation, improvement, financing, architectural 
24
planning, and installation of capital facilities consisting of 
25
buildings, structures, and durable equipment and for the 
26
acquisition and improvement of real property and interest in 
 


 






SB0230 Enrolled
- 15 -
LRB096 08382 RLJ 18494 b




1
real property required, or expected to be required, in 
2
connection with the public facilities, for use by the county 
3
for the furnishing of governmental services to its citizens, 
4
including but not limited to museums and nursing homes.
5
    (j) The Department may promulgate rules to implement this 
6
amendatory Act of the 95th General Assembly only to the extent 
7
necessary to apply the existing rules for the Special County 
8
Retailers' Occupation Tax for Public Safety to this new purpose 
9
for public facilities. 

10
(Source: P.A. 94-781, eff. 5-19-06; 95-474, eff. 1-1-08; 
11
95-1002, eff. 11-20-08.)

 

12
    Section 99. Effective date. This Act takes effect upon 
13
becoming law.