[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
91_HB0244
LRB9100762PTpk
1 AN ACT concerning coal.
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 Section 3-5 as follows:
6 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
7 Sec. 3-5. Exemptions. Use of the following tangible
8 personal property is exempt from the tax imposed by this Act:
9 (1) Personal property purchased from a corporation,
10 society, association, foundation, institution, or
11 organization, other than a limited liability company, that is
12 organized and operated as a not-for-profit service enterprise
13 for the benefit of persons 65 years of age or older if the
14 personal property was not purchased by the enterprise for the
15 purpose of resale by the enterprise.
16 (2) Personal property purchased by a not-for-profit
17 Illinois county fair association for use in conducting,
18 operating, or promoting the county fair.
19 (3) Personal property purchased by a not-for-profit
20 music or dramatic arts organization that establishes, by
21 proof required by the Department by rule, that it has
22 received an exemption under Section 501(c)(3) of the Internal
23 Revenue Code and that is organized and operated for the
24 presentation of live public performances of musical or
25 theatrical works on a regular basis.
26 (4) Personal property purchased by a governmental body,
27 by a corporation, society, association, foundation, or
28 institution organized and operated exclusively for
29 charitable, religious, or educational purposes, or by a
30 not-for-profit corporation, society, association, foundation,
31 institution, or organization that has no compensated officers
-2- LRB9100762PTpk
1 or employees and that is organized and operated primarily for
2 the recreation of persons 55 years of age or older. A limited
3 liability company may qualify for the exemption under this
4 paragraph only if the limited liability company is organized
5 and operated exclusively for educational purposes. On and
6 after July 1, 1987, however, no entity otherwise eligible for
7 this exemption shall make tax-free purchases unless it has an
8 active exemption identification number issued by the
9 Department.
10 (5) A passenger car that is a replacement vehicle to the
11 extent that the purchase price of the car is subject to the
12 Replacement Vehicle Tax.
13 (6) Graphic arts machinery and equipment, including
14 repair and replacement parts, both new and used, and
15 including that manufactured on special order, certified by
16 the purchaser to be used primarily for graphic arts
17 production, and including machinery and equipment purchased
18 for lease.
19 (7) Farm chemicals.
20 (8) Legal tender, currency, medallions, or gold or
21 silver coinage issued by the State of Illinois, the
22 government of the United States of America, or the government
23 of any foreign country, and bullion.
24 (9) Personal property purchased from a teacher-sponsored
25 student organization affiliated with an elementary or
26 secondary school located in Illinois.
27 (10) A motor vehicle of the first division, a motor
28 vehicle of the second division that is a self-contained motor
29 vehicle designed or permanently converted to provide living
30 quarters for recreational, camping, or travel use, with
31 direct walk through to the living quarters from the driver's
32 seat, or a motor vehicle of the second division that is of
33 the van configuration designed for the transportation of not
34 less than 7 nor more than 16 passengers, as defined in
-3- LRB9100762PTpk
1 Section 1-146 of the Illinois Vehicle Code, that is used for
2 automobile renting, as defined in the Automobile Renting
3 Occupation and Use Tax Act.
4 (11) Farm machinery and equipment, both new and used,
5 including that manufactured on special order, certified by
6 the purchaser to be used primarily for production agriculture
7 or State or federal agricultural programs, including
8 individual replacement parts for the machinery and equipment,
9 including machinery and equipment purchased for lease, and
10 including implements of husbandry defined in Section 1-130 of
11 the Illinois Vehicle Code, farm machinery and agricultural
12 chemical and fertilizer spreaders, and nurse wagons required
13 to be registered under Section 3-809 of the Illinois Vehicle
14 Code, but excluding other motor vehicles required to be
15 registered under the Illinois Vehicle Code. Horticultural
16 polyhouses or hoop houses used for propagating, growing, or
17 overwintering plants shall be considered farm machinery and
18 equipment under this item (11). Agricultural chemical tender
19 tanks and dry boxes shall include units sold separately from
20 a motor vehicle required to be licensed and units sold
21 mounted on a motor vehicle required to be licensed if the
22 selling price of the tender is separately stated.
23 Farm machinery and equipment shall include precision
24 farming equipment that is installed or purchased to be
25 installed on farm machinery and equipment including, but not
26 limited to, tractors, harvesters, sprayers, planters,
27 seeders, or spreaders. Precision farming equipment includes,
28 but is not limited to, soil testing sensors, computers,
29 monitors, software, global positioning and mapping systems,
30 and other such equipment.
31 Farm machinery and equipment also includes computers,
32 sensors, software, and related equipment used primarily in
33 the computer-assisted operation of production agriculture
34 facilities, equipment, and activities such as, but not
-4- LRB9100762PTpk
1 limited to, the collection, monitoring, and correlation of
2 animal and crop data for the purpose of formulating animal
3 diets and agricultural chemicals. This item (11) is exempt
4 from the provisions of Section 3-90.
5 (12) Fuel and petroleum products sold to or used by an
6 air common carrier, certified by the carrier to be used for
7 consumption, shipment, or storage in the conduct of its
8 business as an air common carrier, for a flight destined for
9 or returning from a location or locations outside the United
10 States without regard to previous or subsequent domestic
11 stopovers.
12 (13) Proceeds of mandatory service charges separately
13 stated on customers' bills for the purchase and consumption
14 of food and beverages purchased at retail from a retailer, to
15 the extent that the proceeds of the service charge are in
16 fact turned over as tips or as a substitute for tips to the
17 employees who participate directly in preparing, serving,
18 hosting or cleaning up the food or beverage function with
19 respect to which the service charge is imposed.
20 (14) Oil field exploration, drilling, and production
21 equipment, including (i) rigs and parts of rigs, rotary rigs,
22 cable tool rigs, and workover rigs, (ii) pipe and tubular
23 goods, including casing and drill strings, (iii) pumps and
24 pump-jack units, (iv) storage tanks and flow lines, (v) any
25 individual replacement part for oil field exploration,
26 drilling, and production equipment, and (vi) machinery and
27 equipment purchased for lease; but excluding motor vehicles
28 required to be registered under the Illinois Vehicle Code.
29 (15) Photoprocessing machinery and equipment, including
30 repair and replacement parts, both new and used, including
31 that manufactured on special order, certified by the
32 purchaser to be used primarily for photoprocessing, and
33 including photoprocessing machinery and equipment purchased
34 for lease.
-5- LRB9100762PTpk
1 (16) Coal exploration, mining, offhighway hauling,
2 processing, maintenance, and reclamation equipment, including
3 replacement parts and equipment, and including equipment
4 purchased for lease, but excluding motor vehicles required to
5 be registered under the Illinois Vehicle Code.
6 (17) Distillation machinery and equipment, sold as a
7 unit or kit, assembled or installed by the retailer,
8 certified by the user to be used only for the production of
9 ethyl alcohol that will be used for consumption as motor fuel
10 or as a component of motor fuel for the personal use of the
11 user, and not subject to sale or resale.
12 (18) Manufacturing and assembling machinery and
13 equipment used primarily in the process of manufacturing or
14 assembling tangible personal property for wholesale or retail
15 sale or lease, whether that sale or lease is made directly by
16 the manufacturer or by some other person, whether the
17 materials used in the process are owned by the manufacturer
18 or some other person, or whether that sale or lease is made
19 apart from or as an incident to the seller's engaging in the
20 service occupation of producing machines, tools, dies, jigs,
21 patterns, gauges, or other similar items of no commercial
22 value on special order for a particular purchaser.
23 (19) Personal property delivered to a purchaser or
24 purchaser's donee inside Illinois when the purchase order for
25 that personal property was received by a florist located
26 outside Illinois who has a florist located inside Illinois
27 deliver the personal property.
28 (20) Semen used for artificial insemination of livestock
29 for direct agricultural production.
30 (21) Horses, or interests in horses, registered with and
31 meeting the requirements of any of the Arabian Horse Club
32 Registry of America, Appaloosa Horse Club, American Quarter
33 Horse Association, United States Trotting Association, or
34 Jockey Club, as appropriate, used for purposes of breeding or
-6- LRB9100762PTpk
1 racing for prizes.
2 (22) Computers and communications equipment utilized for
3 any hospital purpose and equipment used in the diagnosis,
4 analysis, or treatment of hospital patients purchased by a
5 lessor who leases the equipment, under a lease of one year or
6 longer executed or in effect at the time the lessor would
7 otherwise be subject to the tax imposed by this Act, to a
8 hospital that has been issued an active tax exemption
9 identification number by the Department under Section 1g of
10 the Retailers' Occupation Tax Act. If the equipment is
11 leased in a manner that does not qualify for this exemption
12 or is used in any other non-exempt manner, the lessor shall
13 be liable for the tax imposed under this Act or the Service
14 Use Tax Act, as the case may be, based on the fair market
15 value of the property at the time the non-qualifying use
16 occurs. No lessor shall collect or attempt to collect an
17 amount (however designated) that purports to reimburse that
18 lessor for the tax imposed by this Act or the Service Use Tax
19 Act, as the case may be, if the tax has not been paid by the
20 lessor. If a lessor improperly collects any such amount from
21 the lessee, the lessee shall have a legal right to claim a
22 refund of that amount from the lessor. If, however, that
23 amount is not refunded to the lessee for any reason, the
24 lessor is liable to pay that amount to the Department.
25 (23) Personal property purchased by a lessor who leases
26 the property, under a lease of one year or longer executed
27 or in effect at the time the lessor would otherwise be
28 subject to the tax imposed by this Act, to a governmental
29 body that has been issued an active sales tax exemption
30 identification number by the Department under Section 1g of
31 the Retailers' Occupation Tax Act. If the property is leased
32 in a manner that does not qualify for this exemption or used
33 in any other non-exempt manner, the lessor shall be liable
34 for the tax imposed under this Act or the Service Use Tax
-7- LRB9100762PTpk
1 Act, as the case may be, based on the fair market value of
2 the property at the time the non-qualifying use occurs. No
3 lessor shall collect or attempt to collect an amount (however
4 designated) that purports to reimburse that lessor for the
5 tax imposed by this Act or the Service Use Tax Act, as the
6 case may be, if the tax has not been paid by the lessor. If
7 a lessor improperly collects any such amount from the lessee,
8 the lessee shall have a legal right to claim a refund of that
9 amount from the lessor. If, however, that amount is not
10 refunded to the lessee for any reason, the lessor is liable
11 to pay that amount to the Department.
12 (24) Beginning with taxable years ending on or after
13 December 31, 1995 and ending with taxable years ending on or
14 before December 31, 2004, personal property that is donated
15 for disaster relief to be used in a State or federally
16 declared disaster area in Illinois or bordering Illinois by a
17 manufacturer or retailer that is registered in this State to
18 a corporation, society, association, foundation, or
19 institution that has been issued a sales tax exemption
20 identification number by the Department that assists victims
21 of the disaster who reside within the declared disaster area.
22 (25) Beginning with taxable years ending on or after
23 December 31, 1995 and ending with taxable years ending on or
24 before December 31, 2004, personal property that is used in
25 the performance of infrastructure repairs in this State,
26 including but not limited to municipal roads and streets,
27 access roads, bridges, sidewalks, waste disposal systems,
28 water and sewer line extensions, water distribution and
29 purification facilities, storm water drainage and retention
30 facilities, and sewage treatment facilities, resulting from a
31 State or federally declared disaster in Illinois or bordering
32 Illinois when such repairs are initiated on facilities
33 located in the declared disaster area within 6 months after
34 the disaster.
-8- LRB9100762PTpk
1 (26) Beginning January 1, 2000, coal. This paragraph is
2 exempt from the provisions of Section 3-90.
3 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
4 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
5 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
6 eff. 12-12-97; 90-605, eff. 6-30-98.)
7 Section 10. The Service Use Tax Act is amended by
8 changing Section 3-5 as follows:
9 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
10 Sec. 3-5. Exemptions. Use of the following tangible
11 personal property is exempt from the tax imposed by this Act:
12 (1) Personal property purchased from a corporation,
13 society, association, foundation, institution, or
14 organization, other than a limited liability company, that is
15 organized and operated as a not-for-profit service enterprise
16 for the benefit of persons 65 years of age or older if the
17 personal property was not purchased by the enterprise for the
18 purpose of resale by the enterprise.
19 (2) Personal property purchased by a non-profit Illinois
20 county fair association for use in conducting, operating, or
21 promoting the county fair.
22 (3) Personal property purchased by a not-for-profit
23 music or dramatic arts organization that establishes, by
24 proof required by the Department by rule, that it has
25 received an exemption under Section 501(c)(3) of the Internal
26 Revenue Code and that is organized and operated for the
27 presentation of live public performances of musical or
28 theatrical works on a regular basis.
29 (4) Legal tender, currency, medallions, or gold or
30 silver coinage issued by the State of Illinois, the
31 government of the United States of America, or the government
32 of any foreign country, and bullion.
-9- LRB9100762PTpk
1 (5) Graphic arts machinery and equipment, including
2 repair and replacement parts, both new and used, and
3 including that manufactured on special order or purchased for
4 lease, certified by the purchaser to be used primarily for
5 graphic arts production.
6 (6) Personal property purchased from a teacher-sponsored
7 student organization affiliated with an elementary or
8 secondary school located in Illinois.
9 (7) Farm machinery and equipment, both new and used,
10 including that manufactured on special order, certified by
11 the purchaser to be used primarily for production agriculture
12 or State or federal agricultural programs, including
13 individual replacement parts for the machinery and equipment,
14 including machinery and equipment purchased for lease, and
15 including implements of husbandry defined in Section 1-130 of
16 the Illinois Vehicle Code, farm machinery and agricultural
17 chemical and fertilizer spreaders, and nurse wagons required
18 to be registered under Section 3-809 of the Illinois Vehicle
19 Code, but excluding other motor vehicles required to be
20 registered under the Illinois Vehicle Code. Horticultural
21 polyhouses or hoop houses used for propagating, growing, or
22 overwintering plants shall be considered farm machinery and
23 equipment under this item (7). Agricultural chemical tender
24 tanks and dry boxes shall include units sold separately from
25 a motor vehicle required to be licensed and units sold
26 mounted on a motor vehicle required to be licensed if the
27 selling price of the tender is separately stated.
28 Farm machinery and equipment shall include precision
29 farming equipment that is installed or purchased to be
30 installed on farm machinery and equipment including, but not
31 limited to, tractors, harvesters, sprayers, planters,
32 seeders, or spreaders. Precision farming equipment includes,
33 but is not limited to, soil testing sensors, computers,
34 monitors, software, global positioning and mapping systems,
-10- LRB9100762PTpk
1 and other such equipment.
2 Farm machinery and equipment also includes computers,
3 sensors, software, and related equipment used primarily in
4 the computer-assisted operation of production agriculture
5 facilities, equipment, and activities such as, but not
6 limited to, the collection, monitoring, and correlation of
7 animal and crop data for the purpose of formulating animal
8 diets and agricultural chemicals. This item (7) is exempt
9 from the provisions of Section 3-75.
10 (8) Fuel and petroleum products sold to or used by an
11 air common carrier, certified by the carrier to be used for
12 consumption, shipment, or storage in the conduct of its
13 business as an air common carrier, for a flight destined for
14 or returning from a location or locations outside the United
15 States without regard to previous or subsequent domestic
16 stopovers.
17 (9) Proceeds of mandatory service charges separately
18 stated on customers' bills for the purchase and consumption
19 of food and beverages acquired as an incident to the purchase
20 of a service from a serviceman, to the extent that the
21 proceeds of the service charge are in fact turned over as
22 tips or as a substitute for tips to the employees who
23 participate directly in preparing, serving, hosting or
24 cleaning up the food or beverage function with respect to
25 which the service charge is imposed.
26 (10) Oil field exploration, drilling, and production
27 equipment, including (i) rigs and parts of rigs, rotary rigs,
28 cable tool rigs, and workover rigs, (ii) pipe and tubular
29 goods, including casing and drill strings, (iii) pumps and
30 pump-jack units, (iv) storage tanks and flow lines, (v) any
31 individual replacement part for oil field exploration,
32 drilling, and production equipment, and (vi) machinery and
33 equipment purchased for lease; but excluding motor vehicles
34 required to be registered under the Illinois Vehicle Code.
-11- LRB9100762PTpk
1 (11) Proceeds from the sale of photoprocessing machinery
2 and equipment, including repair and replacement parts, both
3 new and used, including that manufactured on special order,
4 certified by the purchaser to be used primarily for
5 photoprocessing, and including photoprocessing machinery and
6 equipment purchased for lease.
7 (12) Coal exploration, mining, offhighway hauling,
8 processing, maintenance, and reclamation equipment, including
9 replacement parts and equipment, and including equipment
10 purchased for lease, but excluding motor vehicles required to
11 be registered under the Illinois Vehicle Code.
12 (13) Semen used for artificial insemination of livestock
13 for direct agricultural production.
14 (14) Horses, or interests in horses, registered with and
15 meeting the requirements of any of the Arabian Horse Club
16 Registry of America, Appaloosa Horse Club, American Quarter
17 Horse Association, United States Trotting Association, or
18 Jockey Club, as appropriate, used for purposes of breeding or
19 racing for prizes.
20 (15) Computers and communications equipment utilized for
21 any hospital purpose and equipment used in the diagnosis,
22 analysis, or treatment of hospital patients purchased by a
23 lessor who leases the equipment, under a lease of one year or
24 longer executed or in effect at the time the lessor would
25 otherwise be subject to the tax imposed by this Act, to a
26 hospital that has been issued an active tax exemption
27 identification number by the Department under Section 1g of
28 the Retailers' Occupation Tax Act. If the equipment is leased
29 in a manner that does not qualify for this exemption or is
30 used in any other non-exempt manner, the lessor shall be
31 liable for the tax imposed under this Act or the Use Tax Act,
32 as the case may be, based on the fair market value of the
33 property at the time the non-qualifying use occurs. No
34 lessor shall collect or attempt to collect an amount (however
-12- LRB9100762PTpk
1 designated) that purports to reimburse that lessor for the
2 tax imposed by this Act or the Use Tax Act, as the case may
3 be, if the tax has not been paid by the lessor. If a lessor
4 improperly collects any such amount from the lessee, the
5 lessee shall have a legal right to claim a refund of that
6 amount from the lessor. If, however, that amount is not
7 refunded to the lessee for any reason, the lessor is liable
8 to pay that amount to the Department.
9 (16) Personal property purchased by a lessor who leases
10 the property, under a lease of one year or longer executed or
11 in effect at the time the lessor would otherwise be subject
12 to the tax imposed by this Act, to a governmental body that
13 has been issued an active tax exemption identification number
14 by the Department under Section 1g of the Retailers'
15 Occupation Tax Act. If the property is leased in a manner
16 that does not qualify for this exemption or is used in any
17 other non-exempt manner, the lessor shall be liable for the
18 tax imposed under this Act or the Use Tax Act, as the case
19 may be, based on the fair market value of the property at the
20 time the non-qualifying use occurs. No lessor shall collect
21 or attempt to collect an amount (however designated) that
22 purports to reimburse that lessor for the tax imposed by this
23 Act or the Use Tax Act, as the case may be, if the tax has
24 not been paid by the lessor. If a lessor improperly collects
25 any such amount from the lessee, the lessee shall have a
26 legal right to claim a refund of that amount from the lessor.
27 If, however, that amount is not refunded to the lessee for
28 any reason, the lessor is liable to pay that amount to the
29 Department.
30 (17) Beginning with taxable years ending on or after
31 December 31, 1995 and ending with taxable years ending on or
32 before December 31, 2004, personal property that is donated
33 for disaster relief to be used in a State or federally
34 declared disaster area in Illinois or bordering Illinois by a
-13- LRB9100762PTpk
1 manufacturer or retailer that is registered in this State to
2 a corporation, society, association, foundation, or
3 institution that has been issued a sales tax exemption
4 identification number by the Department that assists victims
5 of the disaster who reside within the declared disaster area.
6 (18) Beginning with taxable years ending on or after
7 December 31, 1995 and ending with taxable years ending on or
8 before December 31, 2004, personal property that is used in
9 the performance of infrastructure repairs in this State,
10 including but not limited to municipal roads and streets,
11 access roads, bridges, sidewalks, waste disposal systems,
12 water and sewer line extensions, water distribution and
13 purification facilities, storm water drainage and retention
14 facilities, and sewage treatment facilities, resulting from a
15 State or federally declared disaster in Illinois or bordering
16 Illinois when such repairs are initiated on facilities
17 located in the declared disaster area within 6 months after
18 the disaster.
19 (19) Beginning January 1, 2000, coal. This paragraph is
20 exempt from the provisions of Section 3-75.
21 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
22 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
23 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
24 eff. 12-12-97; 90-605, eff. 6-30-98.)
25 Section 15. The Service Occupation Tax Act is amended
26 by changing Section 3-5 as follows:
27 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
28 Sec. 3-5. Exemptions. The following tangible personal
29 property is exempt from the tax imposed by this Act:
30 (1) Personal property sold by a corporation, society,
31 association, foundation, institution, or organization, other
32 than a limited liability company, that is organized and
-14- LRB9100762PTpk
1 operated as a not-for-profit service enterprise for the
2 benefit of persons 65 years of age or older if the personal
3 property was not purchased by the enterprise for the purpose
4 of resale by the enterprise.
5 (2) Personal property purchased by a not-for-profit
6 Illinois county fair association for use in conducting,
7 operating, or promoting the county fair.
8 (3) Personal property purchased by any not-for-profit
9 music or dramatic arts organization that establishes, by
10 proof required by the Department by rule, that it has
11 received an exemption under Section 501(c)(3) of the
12 Internal Revenue Code and that is organized and operated for
13 the presentation of live public performances of musical or
14 theatrical works on a regular basis.
15 (4) Legal tender, currency, medallions, or gold or
16 silver coinage issued by the State of Illinois, the
17 government of the United States of America, or the government
18 of any foreign country, and bullion.
19 (5) Graphic arts machinery and equipment, including
20 repair and replacement parts, both new and used, and
21 including that manufactured on special order or purchased for
22 lease, certified by the purchaser to be used primarily for
23 graphic arts production.
24 (6) Personal property sold by a teacher-sponsored
25 student organization affiliated with an elementary or
26 secondary school located in Illinois.
27 (7) Farm machinery and equipment, both new and used,
28 including that manufactured on special order, certified by
29 the purchaser to be used primarily for production agriculture
30 or State or federal agricultural programs, including
31 individual replacement parts for the machinery and equipment,
32 including machinery and equipment purchased for lease, and
33 including implements of husbandry defined in Section 1-130 of
34 the Illinois Vehicle Code, farm machinery and agricultural
-15- LRB9100762PTpk
1 chemical and fertilizer spreaders, and nurse wagons required
2 to be registered under Section 3-809 of the Illinois Vehicle
3 Code, but excluding other motor vehicles required to be
4 registered under the Illinois Vehicle Code. Horticultural
5 polyhouses or hoop houses used for propagating, growing, or
6 overwintering plants shall be considered farm machinery and
7 equipment under this item (7). Agricultural chemical tender
8 tanks and dry boxes shall include units sold separately from
9 a motor vehicle required to be licensed and units sold
10 mounted on a motor vehicle required to be licensed if the
11 selling price of the tender is separately stated.
12 Farm machinery and equipment shall include precision
13 farming equipment that is installed or purchased to be
14 installed on farm machinery and equipment including, but not
15 limited to, tractors, harvesters, sprayers, planters,
16 seeders, or spreaders. Precision farming equipment includes,
17 but is not limited to, soil testing sensors, computers,
18 monitors, software, global positioning and mapping systems,
19 and other such equipment.
20 Farm machinery and equipment also includes computers,
21 sensors, software, and related equipment used primarily in
22 the computer-assisted operation of production agriculture
23 facilities, equipment, and activities such as, but not
24 limited to, the collection, monitoring, and correlation of
25 animal and crop data for the purpose of formulating animal
26 diets and agricultural chemicals. This item (7) is exempt
27 from the provisions of Section 3-75.
28 (8) Fuel and petroleum products sold to or used by an
29 air common carrier, certified by the carrier to be used for
30 consumption, shipment, or storage in the conduct of its
31 business as an air common carrier, for a flight destined for
32 or returning from a location or locations outside the United
33 States without regard to previous or subsequent domestic
34 stopovers.
-16- LRB9100762PTpk
1 (9) Proceeds of mandatory service charges separately
2 stated on customers' bills for the purchase and consumption
3 of food and beverages, to the extent that the proceeds of the
4 service charge are in fact turned over as tips or as a
5 substitute for tips to the employees who participate directly
6 in preparing, serving, hosting or cleaning up the food or
7 beverage function with respect to which the service charge is
8 imposed.
9 (10) Oil field exploration, drilling, and production
10 equipment, including (i) rigs and parts of rigs, rotary rigs,
11 cable tool rigs, and workover rigs, (ii) pipe and tubular
12 goods, including casing and drill strings, (iii) pumps and
13 pump-jack units, (iv) storage tanks and flow lines, (v) any
14 individual replacement part for oil field exploration,
15 drilling, and production equipment, and (vi) machinery and
16 equipment purchased for lease; but excluding motor vehicles
17 required to be registered under the Illinois Vehicle Code.
18 (11) Photoprocessing machinery and equipment, including
19 repair and replacement parts, both new and used, including
20 that manufactured on special order, certified by the
21 purchaser to be used primarily for photoprocessing, and
22 including photoprocessing machinery and equipment purchased
23 for lease.
24 (12) Coal exploration, mining, offhighway hauling,
25 processing, maintenance, and reclamation equipment, including
26 replacement parts and equipment, and including equipment
27 purchased for lease, but excluding motor vehicles required to
28 be registered under the Illinois Vehicle Code.
29 (13) Food for human consumption that is to be consumed
30 off the premises where it is sold (other than alcoholic
31 beverages, soft drinks and food that has been prepared for
32 immediate consumption) and prescription and non-prescription
33 medicines, drugs, medical appliances, and insulin, urine
34 testing materials, syringes, and needles used by diabetics,
-17- LRB9100762PTpk
1 for human use, when purchased for use by a person receiving
2 medical assistance under Article 5 of the Illinois Public Aid
3 Code who resides in a licensed long-term care facility, as
4 defined in the Nursing Home Care Act.
5 (14) Semen used for artificial insemination of livestock
6 for direct agricultural production.
7 (15) Horses, or interests in horses, registered with and
8 meeting the requirements of any of the Arabian Horse Club
9 Registry of America, Appaloosa Horse Club, American Quarter
10 Horse Association, United States Trotting Association, or
11 Jockey Club, as appropriate, used for purposes of breeding or
12 racing for prizes.
13 (16) Computers and communications equipment utilized for
14 any hospital purpose and equipment used in the diagnosis,
15 analysis, or treatment of hospital patients sold to a lessor
16 who leases the equipment, under a lease of one year or longer
17 executed or in effect at the time of the purchase, to a
18 hospital that has been issued an active tax exemption
19 identification number by the Department under Section 1g of
20 the Retailers' Occupation Tax Act.
21 (17) Personal property sold to a lessor who leases the
22 property, under a lease of one year or longer executed or in
23 effect at the time of the purchase, to a governmental body
24 that has been issued an active tax exemption identification
25 number by the Department under Section 1g of the Retailers'
26 Occupation Tax Act.
27 (18) Beginning with taxable years ending on or after
28 December 31, 1995 and ending with taxable years ending on or
29 before December 31, 2004, personal property that is donated
30 for disaster relief to be used in a State or federally
31 declared disaster area in Illinois or bordering Illinois by a
32 manufacturer or retailer that is registered in this State to
33 a corporation, society, association, foundation, or
34 institution that has been issued a sales tax exemption
-18- LRB9100762PTpk
1 identification number by the Department that assists victims
2 of the disaster who reside within the declared disaster area.
3 (19) Beginning with taxable years ending on or after
4 December 31, 1995 and ending with taxable years ending on or
5 before December 31, 2004, personal property that is used in
6 the performance of infrastructure repairs in this State,
7 including but not limited to municipal roads and streets,
8 access roads, bridges, sidewalks, waste disposal systems,
9 water and sewer line extensions, water distribution and
10 purification facilities, storm water drainage and retention
11 facilities, and sewage treatment facilities, resulting from a
12 State or federally declared disaster in Illinois or bordering
13 Illinois when such repairs are initiated on facilities
14 located in the declared disaster area within 6 months after
15 the disaster.
16 (20) Beginning January 1, 2000, coal. This paragraph is
17 exempt from the provisions of Section 3-55.
18 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
19 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
20 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
21 eff. 12-12-97; 90-605, eff. 6-30-98.)
22 Section 20. The Retailers' Occupation Tax Act is amended
23 by changing Section 2-5 as follows:
24 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
25 Sec. 2-5. Exemptions. Gross receipts from proceeds from
26 the sale of the following tangible personal property are
27 exempt from the tax imposed by this Act:
28 (1) Farm chemicals.
29 (2) Farm machinery and equipment, both new and used,
30 including that manufactured on special order, certified by
31 the purchaser to be used primarily for production agriculture
32 or State or federal agricultural programs, including
-19- LRB9100762PTpk
1 individual replacement parts for the machinery and equipment,
2 including machinery and equipment purchased for lease, and
3 including implements of husbandry defined in Section 1-130 of
4 the Illinois Vehicle Code, farm machinery and agricultural
5 chemical and fertilizer spreaders, and nurse wagons required
6 to be registered under Section 3-809 of the Illinois Vehicle
7 Code, but excluding other motor vehicles required to be
8 registered under the Illinois Vehicle Code. Horticultural
9 polyhouses or hoop houses used for propagating, growing, or
10 overwintering plants shall be considered farm machinery and
11 equipment under this item (2). Agricultural chemical tender
12 tanks and dry boxes shall include units sold separately from
13 a motor vehicle required to be licensed and units sold
14 mounted on a motor vehicle required to be licensed, if the
15 selling price of the tender is separately stated.
16 Farm machinery and equipment shall include precision
17 farming equipment that is installed or purchased to be
18 installed on farm machinery and equipment including, but not
19 limited to, tractors, harvesters, sprayers, planters,
20 seeders, or spreaders. Precision farming equipment includes,
21 but is not limited to, soil testing sensors, computers,
22 monitors, software, global positioning and mapping systems,
23 and other such equipment.
24 Farm machinery and equipment also includes computers,
25 sensors, software, and related equipment used primarily in
26 the computer-assisted operation of production agriculture
27 facilities, equipment, and activities such as, but not
28 limited to, the collection, monitoring, and correlation of
29 animal and crop data for the purpose of formulating animal
30 diets and agricultural chemicals. This item (7) is exempt
31 from the provisions of Section 3-75.
32 (3) Distillation machinery and equipment, sold as a unit
33 or kit, assembled or installed by the retailer, certified by
34 the user to be used only for the production of ethyl alcohol
-20- LRB9100762PTpk
1 that will be used for consumption as motor fuel or as a
2 component of motor fuel for the personal use of the user, and
3 not subject to sale or resale.
4 (4) Graphic arts machinery and equipment, including
5 repair and replacement parts, both new and used, and
6 including that manufactured on special order or purchased for
7 lease, certified by the purchaser to be used primarily for
8 graphic arts production.
9 (5) A motor vehicle of the first division, a motor
10 vehicle of the second division that is a self-contained motor
11 vehicle designed or permanently converted to provide living
12 quarters for recreational, camping, or travel use, with
13 direct walk through access to the living quarters from the
14 driver's seat, or a motor vehicle of the second division that
15 is of the van configuration designed for the transportation
16 of not less than 7 nor more than 16 passengers, as defined in
17 Section 1-146 of the Illinois Vehicle Code, that is used for
18 automobile renting, as defined in the Automobile Renting
19 Occupation and Use Tax Act.
20 (6) Personal property sold by a teacher-sponsored
21 student organization affiliated with an elementary or
22 secondary school located in Illinois.
23 (7) Proceeds of that portion of the selling price of a
24 passenger car the sale of which is subject to the Replacement
25 Vehicle Tax.
26 (8) Personal property sold to an Illinois county fair
27 association for use in conducting, operating, or promoting
28 the county fair.
29 (9) Personal property sold to a not-for-profit music or
30 dramatic arts organization that establishes, by proof
31 required by the Department by rule, that it has received an
32 exemption under Section 501(c) (3) of the Internal Revenue
33 Code and that is organized and operated for the presentation
34 of live public performances of musical or theatrical works on
-21- LRB9100762PTpk
1 a regular basis.
2 (10) Personal property sold by a corporation, society,
3 association, foundation, institution, or organization, other
4 than a limited liability company, that is organized and
5 operated as a not-for-profit service enterprise for the
6 benefit of persons 65 years of age or older if the personal
7 property was not purchased by the enterprise for the purpose
8 of resale by the enterprise.
9 (11) Personal property sold to a governmental body, to a
10 corporation, society, association, foundation, or institution
11 organized and operated exclusively for charitable, religious,
12 or educational purposes, or to a not-for-profit corporation,
13 society, association, foundation, institution, or
14 organization that has no compensated officers or employees
15 and that is organized and operated primarily for the
16 recreation of persons 55 years of age or older. A limited
17 liability company may qualify for the exemption under this
18 paragraph only if the limited liability company is organized
19 and operated exclusively for educational purposes. On and
20 after July 1, 1987, however, no entity otherwise eligible for
21 this exemption shall make tax-free purchases unless it has an
22 active identification number issued by the Department.
23 (12) Personal property sold to interstate carriers for
24 hire for use as rolling stock moving in interstate commerce
25 or to lessors under leases of one year or longer executed or
26 in effect at the time of purchase by interstate carriers for
27 hire for use as rolling stock moving in interstate commerce
28 and equipment operated by a telecommunications provider,
29 licensed as a common carrier by the Federal Communications
30 Commission, which is permanently installed in or affixed to
31 aircraft moving in interstate commerce.
32 (13) Proceeds from sales to owners, lessors, or shippers
33 of tangible personal property that is utilized by interstate
34 carriers for hire for use as rolling stock moving in
-22- LRB9100762PTpk
1 interstate commerce and equipment operated by a
2 telecommunications provider, licensed as a common carrier by
3 the Federal Communications Commission, which is permanently
4 installed in or affixed to aircraft moving in interstate
5 commerce.
6 (14) Machinery and equipment that will be used by the
7 purchaser, or a lessee of the purchaser, primarily in the
8 process of manufacturing or assembling tangible personal
9 property for wholesale or retail sale or lease, whether the
10 sale or lease is made directly by the manufacturer or by some
11 other person, whether the materials used in the process are
12 owned by the manufacturer or some other person, or whether
13 the sale or lease is made apart from or as an incident to the
14 seller's engaging in the service occupation of producing
15 machines, tools, dies, jigs, patterns, gauges, or other
16 similar items of no commercial value on special order for a
17 particular purchaser.
18 (15) Proceeds of mandatory service charges separately
19 stated on customers' bills for purchase and consumption of
20 food and beverages, to the extent that the proceeds of the
21 service charge are in fact turned over as tips or as a
22 substitute for tips to the employees who participate directly
23 in preparing, serving, hosting or cleaning up the food or
24 beverage function with respect to which the service charge is
25 imposed.
26 (16) Petroleum products sold to a purchaser if the
27 seller is prohibited by federal law from charging tax to the
28 purchaser.
29 (17) Tangible personal property sold to a common carrier
30 by rail or motor that receives the physical possession of the
31 property in Illinois and that transports the property, or
32 shares with another common carrier in the transportation of
33 the property, out of Illinois on a standard uniform bill of
34 lading showing the seller of the property as the shipper or
-23- LRB9100762PTpk
1 consignor of the property to a destination outside Illinois,
2 for use outside Illinois.
3 (18) Legal tender, currency, medallions, or gold or
4 silver coinage issued by the State of Illinois, the
5 government of the United States of America, or the government
6 of any foreign country, and bullion.
7 (19) Oil field exploration, drilling, and production
8 equipment, including (i) rigs and parts of rigs, rotary rigs,
9 cable tool rigs, and workover rigs, (ii) pipe and tubular
10 goods, including casing and drill strings, (iii) pumps and
11 pump-jack units, (iv) storage tanks and flow lines, (v) any
12 individual replacement part for oil field exploration,
13 drilling, and production equipment, and (vi) machinery and
14 equipment purchased for lease; but excluding motor vehicles
15 required to be registered under the Illinois Vehicle Code.
16 (20) Photoprocessing machinery and equipment, including
17 repair and replacement parts, both new and used, including
18 that manufactured on special order, certified by the
19 purchaser to be used primarily for photoprocessing, and
20 including photoprocessing machinery and equipment purchased
21 for lease.
22 (21) Coal exploration, mining, offhighway hauling,
23 processing, maintenance, and reclamation equipment, including
24 replacement parts and equipment, and including equipment
25 purchased for lease, but excluding motor vehicles required to
26 be registered under the Illinois Vehicle Code.
27 (22) Fuel and petroleum products sold to or used by an
28 air carrier, certified by the carrier to be used for
29 consumption, shipment, or storage in the conduct of its
30 business as an air common carrier, for a flight destined for
31 or returning from a location or locations outside the United
32 States without regard to previous or subsequent domestic
33 stopovers.
34 (23) A transaction in which the purchase order is
-24- LRB9100762PTpk
1 received by a florist who is located outside Illinois, but
2 who has a florist located in Illinois deliver the property to
3 the purchaser or the purchaser's donee in Illinois.
4 (24) Fuel consumed or used in the operation of ships,
5 barges, or vessels that are used primarily in or for the
6 transportation of property or the conveyance of persons for
7 hire on rivers bordering on this State if the fuel is
8 delivered by the seller to the purchaser's barge, ship, or
9 vessel while it is afloat upon that bordering river.
10 (25) A motor vehicle sold in this State to a nonresident
11 even though the motor vehicle is delivered to the nonresident
12 in this State, if the motor vehicle is not to be titled in
13 this State, and if a driveaway decal permit is issued to the
14 motor vehicle as provided in Section 3-603 of the Illinois
15 Vehicle Code or if the nonresident purchaser has vehicle
16 registration plates to transfer to the motor vehicle upon
17 returning to his or her home state. The issuance of the
18 driveaway decal permit or having the out-of-state
19 registration plates to be transferred is prima facie evidence
20 that the motor vehicle will not be titled in this State.
21 (26) Semen used for artificial insemination of livestock
22 for direct agricultural production.
23 (27) Horses, or interests in horses, registered with and
24 meeting the requirements of any of the Arabian Horse Club
25 Registry of America, Appaloosa Horse Club, American Quarter
26 Horse Association, United States Trotting Association, or
27 Jockey Club, as appropriate, used for purposes of breeding or
28 racing for prizes.
29 (28) Computers and communications equipment utilized for
30 any hospital purpose and equipment used in the diagnosis,
31 analysis, or treatment of hospital patients sold to a lessor
32 who leases the equipment, under a lease of one year or longer
33 executed or in effect at the time of the purchase, to a
34 hospital that has been issued an active tax exemption
-25- LRB9100762PTpk
1 identification number by the Department under Section 1g of
2 this Act.
3 (29) Personal property sold to a lessor who leases the
4 property, under a lease of one year or longer executed or in
5 effect at the time of the purchase, to a governmental body
6 that has been issued an active tax exemption identification
7 number by the Department under Section 1g of this Act.
8 (30) Beginning with taxable years ending on or after
9 December 31, 1995 and ending with taxable years ending on or
10 before December 31, 2004, personal property that is donated
11 for disaster relief to be used in a State or federally
12 declared disaster area in Illinois or bordering Illinois by a
13 manufacturer or retailer that is registered in this State to
14 a corporation, society, association, foundation, or
15 institution that has been issued a sales tax exemption
16 identification number by the Department that assists victims
17 of the disaster who reside within the declared disaster area.
18 (31) Beginning with taxable years ending on or after
19 December 31, 1995 and ending with taxable years ending on or
20 before December 31, 2004, personal property that is used in
21 the performance of infrastructure repairs in this State,
22 including but not limited to municipal roads and streets,
23 access roads, bridges, sidewalks, waste disposal systems,
24 water and sewer line extensions, water distribution and
25 purification facilities, storm water drainage and retention
26 facilities, and sewage treatment facilities, resulting from a
27 State or federally declared disaster in Illinois or bordering
28 Illinois when such repairs are initiated on facilities
29 located in the declared disaster area within 6 months after
30 the disaster.
31 (32) Beginning January 1, 2000, coal. This paragraph is
32 exempt from the provisions of Section 2-70.
33 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
34 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
-26- LRB9100762PTpk
1 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519,
2 eff. 6-1-98; 90-552, eff. 12-12-97; 90-605, eff. 6-30-98.)
3 Section 25. The Counties Code is amended by changing
4 Sections 5-1006, 5-1006.5, and 5-1008.5 as follows:
5 (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
6 Sec. 5-1006. Home Rule County Retailers' Occupation Tax
7 Law. Any county that is a home rule unit may impose a tax
8 upon all persons engaged in the business of selling tangible
9 personal property, other than an item of tangible personal
10 property titled or registered with an agency of this State's
11 government, at retail in the county on the gross receipts
12 from such sales made in the course of their business. If
13 imposed, this tax shall only be imposed in 1/4% increments.
14 On and after September 1, 1991, this additional tax may not
15 be imposed on the sales of food for human consumption which
16 is to be consumed off the premises where it is sold (other
17 than alcoholic beverages, soft drinks and food which has been
18 prepared for immediate consumption) and prescription and
19 nonprescription medicines, drugs, medical appliances and
20 insulin, urine testing materials, syringes and needles used
21 by diabetics. The tax imposed by a home rule county pursuant
22 to this Section and all civil penalties that may be assessed
23 as an incident thereof shall be collected and enforced by the
24 State Department of Revenue. The certificate of registration
25 that is issued by the Department to a retailer under the
26 Retailers' Occupation Tax Act shall permit the retailer to
27 engage in a business that is taxable under any ordinance or
28 resolution enacted pursuant to this Section without
29 registering separately with the Department under such
30 ordinance or resolution or under this Section. The
31 Department shall have full power to administer and enforce
32 this Section; to collect all taxes and penalties due
-27- LRB9100762PTpk
1 hereunder; to dispose of taxes and penalties so collected in
2 the manner hereinafter provided; and to determine all rights
3 to credit memoranda arising on account of the erroneous
4 payment of tax or penalty hereunder. In the administration
5 of, and compliance with, this Section, the Department and
6 persons who are subject to this Section shall have the same
7 rights, remedies, privileges, immunities, powers and duties,
8 and be subject to the same conditions, restrictions,
9 limitations, penalties and definitions of terms, and employ
10 the same modes of procedure, as are prescribed in Sections 1,
11 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in
12 respect to all provisions therein other than the State rate
13 of tax), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
14 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
15 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
16 Penalty and Interest Act, as fully as if those provisions
17 were set forth herein.
18 No tax may be imposed by a home rule county pursuant to
19 this Section unless the county also imposes a tax at the same
20 rate pursuant to Section 5-1007.
21 Persons subject to any tax imposed pursuant to the
22 authority granted in this Section may reimburse themselves
23 for their seller's tax liability hereunder by separately
24 stating such tax as an additional charge, which charge may be
25 stated in combination, in a single amount, with State tax
26 which sellers are required to collect under the Use Tax Act,
27 pursuant to such bracket schedules as the Department may
28 prescribe.
29 Whenever the Department determines that a refund should
30 be made under this Section to a claimant instead of issuing a
31 credit memorandum, the Department shall notify the State
32 Comptroller, who shall cause the order to be drawn for the
33 amount specified and to the person named in the notification
34 from the Department. The refund shall be paid by the State
-28- LRB9100762PTpk
1 Treasurer out of the home rule county retailers' occupation
2 tax fund.
3 The Department shall forthwith pay over to the State
4 Treasurer, ex officio, as trustee, all taxes and penalties
5 collected hereunder. On or before the 25th day of each
6 calendar month, the Department shall prepare and certify to
7 the Comptroller the disbursement of stated sums of money to
8 named counties, the counties to be those from which retailers
9 have paid taxes or penalties hereunder to the Department
10 during the second preceding calendar month. The amount to be
11 paid to each county shall be the amount (not including credit
12 memoranda) collected hereunder during the second preceding
13 calendar month by the Department plus an amount the
14 Department determines is necessary to offset any amounts that
15 were erroneously paid to a different taxing body, and not
16 including an amount equal to the amount of refunds made
17 during the second preceding calendar month by the Department
18 on behalf of such county, and not including any amount which
19 the Department determines is necessary to offset any amounts
20 which were payable to a different taxing body but were
21 erroneously paid to the county. Within 10 days after receipt,
22 by the Comptroller, of the disbursement certification to the
23 counties provided for in this Section to be given to the
24 Comptroller by the Department, the Comptroller shall cause
25 the orders to be drawn for the respective amounts in
26 accordance with the directions contained in the
27 certification.
28 In addition to the disbursement required by the preceding
29 paragraph, an allocation shall be made in March of each year
30 to each county that received more than $500,000 in
31 disbursements under the preceding paragraph in the preceding
32 calendar year. The allocation shall be in an amount equal to
33 the average monthly distribution made to each such county
34 under the preceding paragraph during the preceding calendar
-29- LRB9100762PTpk
1 year (excluding the 2 months of highest receipts). The
2 distribution made in March of each year subsequent to the
3 year in which an allocation was made pursuant to this
4 paragraph and the preceding paragraph shall be reduced by the
5 amount allocated and disbursed under this paragraph in the
6 preceding calendar year. The Department shall prepare and
7 certify to the Comptroller for disbursement the allocations
8 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 a coal or other mineral, other than coal, mined in Illinois
12 is a sale at retail at the place where the coal or other
13 mineral mined in Illinois is extracted from the earth. This
14 paragraph does not apply to a coal or other mineral when it
15 is delivered or shipped by the seller to the purchaser at a
16 point outside Illinois so that the sale is exempt under the
17 United States Constitution as a sale in interstate or foreign
18 commerce.
19 Nothing in this Section shall be construed to authorize a
20 county to impose a tax upon the privilege of engaging in any
21 business which under the Constitution of the United States
22 may not be made the subject of taxation by this State.
23 An ordinance or resolution imposing or discontinuing a
24 tax hereunder or effecting a change in the rate thereof shall
25 be adopted and a certified copy thereof filed with the
26 Department on or before the first day of June, whereupon the
27 Department shall proceed to administer and enforce this
28 Section as of the first day of September next following such
29 adoption and filing. Beginning January 1, 1992, an ordinance
30 or resolution imposing or discontinuing the tax hereunder or
31 effecting a change in the rate thereof shall be adopted and a
32 certified copy thereof filed with the Department on or before
33 the first day of July, whereupon the Department shall proceed
34 to administer and enforce this Section as of the first day of
-30- LRB9100762PTpk
1 October next following such adoption and filing. Beginning
2 January 1, 1993, an ordinance or resolution imposing or
3 discontinuing the tax hereunder or effecting a change in the
4 rate thereof shall be adopted and a certified copy thereof
5 filed with the Department on or before the first day of
6 October, whereupon the Department shall proceed to administer
7 and enforce this Section as of the first day of January next
8 following such adoption and filing. Beginning April 1, 1998,
9 an ordinance or resolution imposing or discontinuing the tax
10 hereunder or effecting a change in the rate thereof shall
11 either (i) be adopted and a certified copy thereof filed with
12 the Department on or before the first day of April, whereupon
13 the Department shall proceed to administer and enforce this
14 Section as of the first day of July next following the
15 adoption and filing; or (ii) be adopted and a certified copy
16 thereof filed with the Department on or before the first day
17 of October, whereupon the Department shall proceed to
18 administer and enforce this Section as of the first day of
19 January next following the adoption and filing.
20 When certifying the amount of a monthly disbursement to a
21 county under this Section, the Department shall increase or
22 decrease such amount by an amount necessary to offset any
23 misallocation of previous disbursements. The offset amount
24 shall be the amount erroneously disbursed within the previous
25 6 months from the time a misallocation is discovered.
26 This Section shall be known and may be cited as the Home
27 Rule County Retailers' Occupation Tax Law.
28 (Source: P.A. 90-689, eff. 7-31-98.)
29 (55 ILCS 5/5-1006.5)
30 Sec. 5-1006.5. Special County Retailers' Occupation Tax
31 For Public Safety.
32 (a) The county board of any county may impose a tax upon
33 all persons engaged in the business of selling tangible
-31- LRB9100762PTpk
1 personal property, other than personal property titled or
2 registered with an agency of this State's government, at
3 retail in the county on the gross receipts from the sales
4 made in the course of business to provide revenue to be used
5 exclusively for public safety purposes in that county, if a
6 proposition for the tax has been submitted to the electors of
7 that county and approved by a majority of those voting on the
8 question. If imposed, this tax shall be imposed only in
9 one-quarter percent increments. By resolution, the county
10 board may order the proposition to be submitted at any
11 election. The county clerk shall certify the question to the
12 proper election authority, who shall submit the proposition
13 at an election in accordance with the general election law.
14 The proposition shall be in substantially the following
15 form:
16 "Shall (name of county) be authorized to impose a
17 public safety tax at the rate of .... upon all persons
18 engaged in the business of selling tangible personal
19 property at retail in the county on gross receipts from
20 the sales made in the course of their business to be used
21 for crime prevention, detention, and other public safety
22 purposes?"
23 Votes shall be recorded as Yes or No. If a majority of the
24 electors voting on the proposition vote in favor of it, the
25 county may impose the tax.
26 This additional tax may not be imposed on the sales of
27 food for human consumption that is to be consumed off the
28 premises where it is sold (other than alcoholic beverages,
29 soft drinks, and food which has been prepared for immediate
30 consumption) and prescription and non-prescription medicines,
31 drugs, medical appliances and insulin, urine testing
32 materials, syringes, and needles used by diabetics. The tax
33 imposed by a county under this Section and all civil
34 penalties that may be assessed as an incident of the tax
-32- LRB9100762PTpk
1 shall be collected and enforced by the Illinois Department of
2 Revenue. The certificate of registration that is issued by
3 the Department to a retailer under the Retailers' Occupation
4 Tax Act shall permit the retailer to engage in a business
5 that is taxable without registering separately with the
6 Department under an ordinance or resolution under this
7 Section. The Department has full power to administer and
8 enforce this Section, to collect all taxes and penalties due
9 under this Section, to dispose of taxes and penalties so
10 collected in the manner provided in this Section, and to
11 determine all rights to credit memoranda arising on account
12 of the erroneous payment of a tax or penalty under this
13 Section. In the administration of and compliance with this
14 Section, the Department and persons who are subject to this
15 Section shall (i) have the same rights, remedies, privileges,
16 immunities, powers, and duties, (ii) be subject to the same
17 conditions, restrictions, limitations, penalties, and
18 definitions of terms, and (iii) employ the same modes of
19 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
20 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to
21 all provisions contained in those Sections other than the
22 State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except
23 provisions relating to transaction returns and quarter
24 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
25 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13
26 of the Retailers' Occupation Tax Act and Section 3-7 of the
27 Uniform Penalty and Interest Act as if those provisions were
28 set forth in this Section.
29 Persons subject to any tax imposed under the authority
30 granted in this Section may reimburse themselves for their
31 sellers' tax liability by separately stating the tax as an
32 additional charge, which charge may be stated in combination,
33 in a single amount, with State tax which sellers are required
34 to collect under the Use Tax Act, pursuant to such bracketed
-33- LRB9100762PTpk
1 schedules as the Department may prescribe.
2 Whenever the Department determines that a refund should
3 be made under this Section to a claimant instead of issuing a
4 credit memorandum, the Department shall notify the State
5 Comptroller, who shall cause the order to be drawn for the
6 amount specified and to the person named in the notification
7 from the Department. The refund shall be paid by the State
8 Treasurer out of the County Public Safety Retailers'
9 Occupation Tax Fund.
10 (b) If a tax has been imposed under subsection (a), a
11 service occupation tax shall also be imposed at the same rate
12 upon all persons engaged, in the county, in the business of
13 making sales of service, who, as an incident to making those
14 sales of service, transfer tangible personal property within
15 the county as an incident to a sale of service. This tax may
16 not be imposed on sales of food for human consumption that is
17 to be consumed off the premises where it is sold (other than
18 alcoholic beverages, soft drinks, and food prepared for
19 immediate consumption) and prescription and non-prescription
20 medicines, drugs, medical appliances and insulin, urine
21 testing materials, syringes, and needles used by diabetics.
22 The tax imposed under this subsection and all civil penalties
23 that may be assessed as an incident thereof shall be
24 collected and enforced by the Department of Revenue. The
25 Department has full power to administer and enforce this
26 subsection; to collect all taxes and penalties due hereunder;
27 to dispose of taxes and penalties so collected in the manner
28 hereinafter provided; and to determine all rights to credit
29 memoranda arising on account of the erroneous payment of tax
30 or penalty hereunder. In the administration of, and
31 compliance with this subsection, the Department and persons
32 who are subject to this paragraph shall (i) have the same
33 rights, remedies, privileges, immunities, powers, and duties,
34 (ii) be subject to the same conditions, restrictions,
-34- LRB9100762PTpk
1 limitations, penalties, exclusions, exemptions, and
2 definitions of terms, and (iii) employ the same modes of
3 procedure as are prescribed in Sections 2 (except that the
4 reference to State in the definition of supplier maintaining
5 a place of business in this State shall mean the county), 2a,
6 2b, 2c, 3 through 3-50 (in respect to all provisions therein
7 other than the State rate of tax), 4 (except that the
8 reference to the State shall be to the county), 5, 7, 8
9 (except that the jurisdiction to which the tax shall be a
10 debt to the extent indicated in that Section 8 shall be the
11 county), 9 (except as to the disposition of taxes and
12 penalties collected), 10, 11, 12 (except the reference
13 therein to Section 2b of the Retailers' Occupation Tax Act),
14 13 (except that any reference to the State shall mean the
15 county), Section 15, 16, 17, 18, 19 and 20 of the Service
16 Occupation Tax Act and Section 3-7 of the Uniform Penalty and
17 Interest Act, as fully as if those provisions were set forth
18 herein.
19 Persons subject to any tax imposed under the authority
20 granted in this subsection may reimburse themselves for their
21 serviceman's tax liability by separately stating the tax as
22 an additional charge, which charge may be stated in
23 combination, in a single amount, with State tax that
24 servicemen are authorized to collect under the Service Use
25 Tax Act, in accordance with such bracket schedules as the
26 Department may prescribe.
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 warrant to be drawn
31 for the amount specified, and to the person named, in the
32 notification from the Department. The refund shall be paid
33 by the State Treasurer out of the County Public Safety
34 Retailers' Occupation Fund.
-35- LRB9100762PTpk
1 Nothing in this subsection shall be construed to
2 authorize the county to impose a tax upon the privilege of
3 engaging in any business which under the Constitution of the
4 United States may not be made the subject of taxation by the
5 State.
6 (c) The Department shall immediately pay over to the
7 State Treasurer, ex officio, as trustee, all taxes and
8 penalties collected under this Section to be deposited into
9 the County Public Safety Retailers' Occupation Tax Fund,
10 which shall be an unappropriated trust fund held outside of
11 the State treasury. 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 the counties from which retailers have paid taxes or
15 penalties to the Department during the second preceding
16 calendar month. The amount to be paid to each county shall
17 be the amount (not including credit memoranda) collected
18 under this Section during the second preceding calendar month
19 by the Department plus an amount the Department determines is
20 necessary to offset any amounts that were erroneously paid to
21 a different taxing body, and not including (i) an amount
22 equal to the amount of refunds made during the second
23 preceding calendar month by the Department on behalf of the
24 county and (ii) any amount that the Department determines is
25 necessary to offset any amounts that were payable to a
26 different taxing body but were erroneously paid to the
27 county. Within 10 days after receipt by the Comptroller of
28 the disbursement certification to the counties provided for
29 in this Section to be given to the Comptroller by the
30 Department, the Comptroller shall cause the orders to be
31 drawn for the respective amounts in accordance with
32 directions contained in the certification.
33 In addition to the disbursement required by the preceding
34 paragraph, an allocation shall be made in March of each year
-36- LRB9100762PTpk
1 to each county that received more than $500,000 in
2 disbursements under the preceding paragraph in the preceding
3 calendar year. The allocation shall be in an amount equal to
4 the average monthly distribution made to each such county
5 under the preceding paragraph during the preceding calendar
6 year (excluding the 2 months of highest receipts). The
7 distribution made in March of each year subsequent to the
8 year in which an allocation was made pursuant to this
9 paragraph and the preceding paragraph shall be reduced by the
10 amount allocated and disbursed under this paragraph in the
11 preceding calendar year. The Department shall prepare and
12 certify to the Comptroller for disbursement the allocations
13 made in accordance with this paragraph.
14 (d) For the purpose of determining the local
15 governmental unit whose tax is applicable, a retail sale by a
16 producer of a coal or another mineral, other than coal, mined
17 in Illinois is a sale at retail at the place where the coal
18 or other mineral mined in Illinois is extracted from the
19 earth. This paragraph does not apply to a coal or another
20 mineral when it is delivered or shipped by the seller to the
21 purchaser at a point outside Illinois so that the sale is
22 exempt under the United States Constitution as a sale in
23 interstate or foreign commerce.
24 (e) Nothing in this Section shall be construed to
25 authorize a county to impose a tax upon the privilege of
26 engaging in any business that under the Constitution of the
27 United States may not be made the subject of taxation by this
28 State.
29 (e-5) If a county imposes a tax under this Section, the
30 county board may, by ordinance, discontinue or lower the rate
31 of the tax. If the county board lowers the tax rate or
32 discontinues the tax, a referendum must be held in accordance
33 with subsection (a) of this Section in order to increase the
34 rate of the tax or to reimpose the discontinued tax.
-37- LRB9100762PTpk
1 (f) Beginning April 1, 1998, the results of any election
2 authorizing a proposition to impose a tax under this Section
3 or effecting a change in the rate of tax, or any ordinance
4 lowering the rate or discontinuing the tax, shall be
5 certified by the county clerk and filed with the Illinois
6 Department of Revenue either (i) on or before the first day
7 of April, whereupon the Department shall proceed to
8 administer and enforce the tax as of the first day of July
9 next following the filing; or (ii) on or before the first day
10 of October, whereupon the Department shall proceed to
11 administer and enforce the tax as of the first day of January
12 next following the filing.
13 (g) When certifying the amount of a monthly disbursement
14 to a county under this Section, the Department shall increase
15 or decrease the amounts by an amount necessary to offset any
16 miscalculation of previous disbursements. The offset amount
17 shall be the amount erroneously disbursed within the previous
18 6 months from the time a miscalculation is discovered.
19 (h) This Section may be cited as the "Special County
20 Occupation Tax For Public Safety Law".
21 (i) For purposes of this Section, "public safety"
22 includes but is not limited to fire fighting, police,
23 medical, ambulance, or other emergency services.
24 (Source: P.A. 89-107, eff. 1-1-96; 89-718, eff. 3-7-97;
25 90-190, eff. 7-24-97; 90-267, eff. 7-30-97; 90-552, eff.
26 12-12-97; 90-562, eff. 12-16-97; 90-655, eff. 7-30-98;
27 90-689, eff. 7-31-98.)
28 (55 ILCS 5/5-1008.5)
29 Sec. 5-1008.5. Use and occupation taxes.
30 (a) The Rock Island County Board may adopt a resolution
31 that authorizes a referendum on the question of whether the
32 county shall be authorized to impose a retailers' occupation
33 tax, a service occupation tax, and a use tax at a rate of 1/4
-38- LRB9100762PTpk
1 of 1% on behalf of the economic development activities of
2 Rock Island County and communities located within the county.
3 The county board shall certify the question to the proper
4 election authorities who shall submit the question to the
5 voters of the county at the next regularly scheduled election
6 in accordance with the general election law. The question
7 shall be in substantially the following form:
8 Shall Rock Island County be authorized to impose a
9 retailers' occupation tax, a service occupation tax, and
10 a use tax at the rate of 1/4 of 1% for the sole purpose
11 of economic development activities, including creation
12 and retention of job opportunities, support of affordable
13 housing opportunities, and enhancement of quality of life
14 improvements?
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 county is authorized to impose the tax.
18 (b) The county shall impose the retailers' occupation
19 tax upon all persons engaged in the business of selling
20 tangible personal property at retail in the county, at the
21 rate approved by referendum, on the gross receipts from the
22 sales made in the course of those businesses within the
23 county. This additional tax may not be imposed on the sale of
24 food for human consumption that is to be consumed off the
25 premises where it is sold (other than alcoholic beverages,
26 soft drinks, and food that has been prepared for immediate
27 consumption) and prescription and non-prescription medicines,
28 drugs, medical appliances and insulin, urine testing
29 materials, syringes, and needles used by diabetics. The tax
30 imposed under this Section and all civil penalties that may
31 be assessed as an incident of the tax shall be collected and
32 enforced by the Department of Revenue. The Department has
33 full power to administer and enforce this Section; to collect
34 all taxes and penalties so collected in the manner provided
-39- LRB9100762PTpk
1 in this Section; and to determine all rights to credit
2 memoranda arising on account of the erroneous payment of tax
3 or penalty under this Section. In the administration of, and
4 compliance with, this Section, the Department and persons who
5 are subject to this Section shall (i) have the same rights,
6 remedies, privileges, immunities, powers and duties, (ii) be
7 subject to the same conditions, restrictions, limitations,
8 penalties, exclusions, exemptions, and definitions of terms,
9 and (iii) employ the same modes of procedure as are
10 prescribed in Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j,
11 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
12 other than the State rate of tax), 2-15 through 2-70, 2a, 2b,
13 2c, 3 (except as to the disposition of taxes and penalties
14 collected and provisions related to quarter monthly
15 payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l,
16 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
17 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
18 Penalty and Interest Act, as fully as if those provisions
19 were set forth in this subsection.
20 Persons subject to any tax imposed under this subsection
21 may reimburse themselves for their seller's tax liability by
22 separately stating the tax as an additional charge, which
23 charge may be stated in combination, in a single amount, with
24 State taxes that sellers are required to collect, in
25 accordance with bracket schedules prescribed by the
26 Department.
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 warrant to be drawn
31 for the amount specified, and to the person named, in the
32 notification from the Department. The refund shall be paid
33 by the State Treasurer out of the tax fund referenced under
34 paragraph (g) of this Section.
-40- LRB9100762PTpk
1 If a tax is imposed under this subsection (b), a tax
2 shall also be imposed at the same rate under subsections (c)
3 and (d) of this Section.
4 For the purpose of determining whether a tax authorized
5 under this Section is applicable, a retail sale, by a
6 producer of a coal or another mineral, other than coal, mined
7 in Illinois, is a sale at retail at the place where the coal
8 or other mineral mined in Illinois is extracted from the
9 earth. This paragraph does not apply to a coal or another
10 mineral when it is delivered or shipped by the seller to the
11 purchaser at a point outside Illinois so that the sale is
12 exempt under the federal Constitution as a sale in interstate
13 or foreign commerce.
14 Nothing in this Section shall be construed to authorize
15 the county to impose a tax upon the privilege of engaging in
16 any business that under the Constitution of the United States
17 may not be made the subject of taxation by this State.
18 (c) If a tax has been imposed under subsection (b), a
19 service occupation tax shall also be imposed at the same rate
20 upon all persons engaged, in the county, in the business of
21 making sales of service, who, as an incident to making those
22 sales of service, transfer tangible personal property within
23 the county as an incident to a sale of service. This
24 additional tax may not be imposed on the sale of food for
25 human consumption that is to be consumed off the premises
26 where it is sold (other than alcoholic beverages, soft
27 drinks, and food that has been prepared for immediate
28 consumption) and prescription and non-prescription medicines,
29 drugs, medical appliances and insulin, urine testing
30 materials, syringes, and needles used by diabetics. The tax
31 imposed under this subsection and all civil penalties that
32 may be assessed as an incident of the tax shall be collected
33 and enforced by the Department of Revenue. The Department has
34 full power to administer and enforce this paragraph; to
-41- LRB9100762PTpk
1 collect all taxes and penalties due under this Section; to
2 dispose of taxes and penalties so collected in the manner
3 provided in this Section; and to determine all rights to
4 credit memoranda arising on account of the erroneous payment
5 of tax or penalty under this Section. In the administration
6 of, and compliance with this paragraph, the Department and
7 persons who are subject to this paragraph shall (i) have the
8 same rights, remedies, privileges, immunities, powers, and
9 duties, (ii) be subject to the same conditions, restrictions,
10 limitations, penalties, exclusions, exemptions, and
11 definitions of terms, and (iii) employ the same modes of
12 procedure as are prescribed in Sections 2 (except that the
13 reference to State in the definition of supplier maintaining
14 a place of business in this State shall mean the county), 2a,
15 2b, 3 through 3-55 (in respect to all provisions other than
16 the State rate of tax), 4 (except that the reference to the
17 State shall be to the county), 5, 7, 8 (except that the
18 jurisdiction to which the tax shall be a debt to the extent
19 indicated in that Section 8 shall be the county), 9 (except
20 as to the disposition of taxes and penalties collected, and
21 except that the returned merchandise credit for this tax may
22 not be taken against any State tax), 11, 12 (except the
23 reference to Section 2b of the Retailers' Occupation Tax
24 Act), 13 (except that any reference to the State shall mean
25 the county), 15, 16, 17, 18, 19 and 20 of the Service
26 Occupation Tax Act and Section 3-7 of the Uniform Penalty and
27 Interest Act, as fully as if those provisions were set forth
28 in this subsection.
29 Persons subject to any tax imposed under the authority
30 granted in this subsection may reimburse themselves for their
31 serviceman's tax liability by separately stating the tax as
32 an additional charge, which charge may be stated in
33 combination, in a single amount, with State tax that
34 servicemen are authorized to collect under the Service Use
-42- LRB9100762PTpk
1 Tax Act, in accordance with bracket schedules prescribed by
2 the Department.
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 Nothing in this paragraph shall be construed to authorize
12 the county to impose a tax upon the privilege of engaging in
13 any business that under the Constitution of the United States
14 may not be made the subject of taxation by the State.
15 (d) If a tax has been imposed under subsection (b), a
16 use tax shall also be imposed at the same rate upon the
17 privilege of using, in the county, any item of tangible
18 personal property that is purchased outside the county at
19 retail from a retailer, and that is titled or registered at a
20 location within the county with an agency of this State's
21 government. This additional tax may not be imposed on the
22 sale of food for human consumption that is to be consumed off
23 the premises where it is sold (other than alcoholic
24 beverages, soft drinks, and food that has been prepared for
25 immediate consumption) and prescription and non-prescription
26 medicines, drugs, medical appliances and insulin, urine
27 testing materials, syringes, and needles used by diabetics.
28 "Selling price" is defined as in the Use Tax Act. The tax
29 shall be collected from persons whose Illinois address for
30 titling or registration purposes is given as being in the
31 county. The tax shall be collected by the Department of
32 Revenue for the county. The tax must be paid to the State, or
33 an exemption determination must be obtained from the
34 Department of Revenue, before the title or certificate of
-43- LRB9100762PTpk
1 registration for the property may be issued. The tax or
2 proof of exemption may be transmitted to the Department by
3 way of the State agency with which, or the State officer with
4 whom, the tangible personal property must be titled or
5 registered if the Department and the State agency or State
6 officer determine that this procedure will expedite the
7 processing of applications for title or registration.
8 The Department has full power to administer and enforce
9 this paragraph; to collect all taxes, penalties, and interest
10 due under this Section; to dispose of taxes, penalties, and
11 interest so collected in the manner provided in this Section;
12 and to determine all rights to credit memoranda or refunds
13 arising on account of the erroneous payment of tax, penalty,
14 or interest under this Section. In the administration of, and
15 compliance with, this subsection, the Department and persons
16 who are subject to this paragraph shall (i) have the same
17 rights, remedies, privileges, immunities, powers, and duties,
18 (ii) be subject to the same conditions, restrictions,
19 limitations, penalties, exclusions, exemptions, and
20 definitions of terms, and (iii) employ the same modes of
21 procedure as are prescribed in Sections 2 (except the
22 definition of "retailer maintaining a place of business in
23 this State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a,
24 4, 6, 7, 8 (except that the jurisdiction to which the tax
25 shall be a debt to the extent indicated in that Section 8
26 shall be the county), 9 (except provisions relating to
27 quarter monthly payments), 10, 11, 12, 12a, 12b, 13, 14, 15,
28 19, 20, 21, and 22 of the Use Tax Act and Section 3-7 of the
29 Uniform Penalty and Interest Act, that are not inconsistent
30 with this paragraph, as fully as if those provisions were set
31 forth in this subsection.
32 Whenever the Department determines that a refund should
33 be made under this subsection to a claimant instead of
34 issuing a credit memorandum, the Department shall notify the
-44- LRB9100762PTpk
1 State Comptroller, who shall cause the order to be drawn for
2 the amount specified, and to the person named, in the
3 notification from the Department. The refund shall be paid by
4 the State Treasurer out of the tax fund referenced under
5 paragraph (g) of this Section.
6 (e) A certificate of registration issued by the State
7 Department of Revenue to a retailer under the Retailers'
8 Occupation Tax Act or under the Service Occupation Tax Act
9 shall permit the registrant to engage in a business that is
10 taxed under the tax imposed under paragraphs (b), (c), or (d)
11 of this Section and no additional registration shall be
12 required. A certificate issued under the Use Tax Act or the
13 Service Use Tax Act shall be applicable with regard to any
14 tax imposed under paragraph (c) of this Section.
15 (f) The results of any election authorizing a
16 proposition to impose a tax under this Section or effecting a
17 change in the rate of tax shall be certified by the proper
18 election authorities and filed with the Illinois Department
19 on or before the first day of October. In addition, an
20 ordinance imposing, discontinuing, or effecting a change in
21 the rate of tax under this Section shall be adopted and a
22 certified copy of the ordinance filed with the Department on
23 or before the first day of October. After proper receipt of
24 the certifications, the Department shall proceed to
25 administer and enforce this Section as of the first day of
26 January next following the adoption and filing.
27 (g) The Department of Revenue shall, upon collecting any
28 taxes and penalties as provided in this Section, pay the
29 taxes and penalties over to the State Treasurer as trustee
30 for the county. The taxes and penalties shall be held in a
31 trust fund outside the State Treasury. On or before the 25th
32 day of each calendar month, the Department of Revenue shall
33 prepare and certify to the Comptroller of the State of
34 Illinois the amount to be paid to the county, which shall be
-45- LRB9100762PTpk
1 the balance in the fund, less any amount determined by the
2 Department to be necessary for the payment of refunds. Within
3 10 days after receipt by the Comptroller of the certification
4 of the amount to be paid to the county, the Comptroller shall
5 cause an order to be drawn for payment for the amount in
6 accordance with the directions contained in the
7 certification. Amounts received from the tax imposed under
8 this Section shall be used only for the economic development
9 activities of the county and communities located within the
10 county.
11 (h) When certifying the amount of a monthly disbursement
12 to the county under this Section, the Department shall
13 increase or decrease the amounts by an amount necessary to
14 offset any miscalculation of previous disbursements. The
15 offset amount shall be the amount erroneously disbursed
16 within the previous 6 months from the time a miscalculation
17 is discovered.
18 (i) This Section may be cited as the Rock Island County
19 Use and Occupation Tax Law.
20 (Source: P.A. 90-415, eff. 8-15-97.)
21 Section 30. The Illinois Municipal Code is amended by
22 changing Sections 8-11-1, 8-11-1.3, and 8-11-1.6 as follows:
23 (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
24 Sec. 8-11-1. Home Rule Municipal Retailers' Occupation
25 Tax Act. The corporate authorities of a home rule
26 municipality may impose a tax upon all persons engaged in the
27 business of selling tangible personal property, other than an
28 item of tangible personal property titled or registered with
29 an agency of this State's government, at retail in the
30 municipality on the gross receipts from these sales made in
31 the course of such business. If imposed, the tax shall only
32 be imposed in 1/4% increments. On and after September 1,
-46- LRB9100762PTpk
1 1991, this additional tax may not be imposed on the sales of
2 food for human consumption that is to be consumed off the
3 premises where it is sold (other than alcoholic beverages,
4 soft drinks and food that has been prepared for immediate
5 consumption) and prescription and nonprescription medicines,
6 drugs, medical appliances and insulin, urine testing
7 materials, syringes and needles used by diabetics. The tax
8 imposed by a home rule municipality under this Section and
9 all civil penalties that may be assessed as an incident of
10 the tax shall be collected and enforced by the State
11 Department of Revenue. The certificate of registration that
12 is issued by the Department to a retailer under the
13 Retailers' Occupation Tax Act shall permit the retailer to
14 engage in a business that is taxable under any ordinance or
15 resolution enacted pursuant to this Section without
16 registering separately with the Department under such
17 ordinance or resolution or under this Section. The
18 Department shall have full power to administer and enforce
19 this Section; to collect all taxes and penalties due
20 hereunder; to dispose of taxes and penalties so collected in
21 the manner hereinafter provided; and to determine all rights
22 to credit memoranda arising on account of the erroneous
23 payment of tax or penalty hereunder. In the administration
24 of, and compliance with, this Section the Department and
25 persons who are subject to this Section shall have the same
26 rights, remedies, privileges, immunities, powers and duties,
27 and be subject to the same conditions, restrictions,
28 limitations, penalties and definitions of terms, and employ
29 the same modes of procedure, as are prescribed in Sections 1,
30 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in
31 respect to all provisions therein other than the State rate
32 of tax), 2c, 3 (except as to the disposition of taxes and
33 penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
34 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of
-47- LRB9100762PTpk
1 the Retailers' Occupation Tax Act and Section 3-7 of the
2 Uniform Penalty and Interest Act, as fully as if those
3 provisions were set forth herein.
4 No tax may be imposed by a home rule municipality under
5 this Section unless the municipality also imposes a tax at
6 the same rate under Section 8-11-5 of this Act.
7 Persons subject to any tax imposed under the authority
8 granted in this Section may reimburse themselves for their
9 seller's tax liability hereunder by separately stating that
10 tax as an additional charge, which charge may be stated in
11 combination, in a single amount, with State tax which sellers
12 are required to collect under the Use Tax Act, pursuant to
13 such bracket schedules as the Department may prescribe.
14 Whenever the Department determines that a refund should
15 be made under this Section to a claimant instead of issuing a
16 credit memorandum, the Department shall notify the State
17 Comptroller, who shall cause the order to be drawn for the
18 amount specified and to the person named in the notification
19 from the Department. The refund shall be paid by the State
20 Treasurer out of the home rule municipal retailers'
21 occupation tax fund.
22 The Department shall immediately pay over to the State
23 Treasurer, ex officio, as trustee, all taxes and penalties
24 collected hereunder. On or before the 25th day of each
25 calendar month, the Department shall prepare and certify to
26 the Comptroller the disbursement of stated sums of money to
27 named municipalities, the municipalities to be those from
28 which retailers have paid taxes or penalties hereunder to the
29 Department during the second preceding calendar month. The
30 amount to be paid to each municipality shall be the amount
31 (not including credit memoranda) collected hereunder during
32 the second preceding calendar month by the Department plus an
33 amount the Department determines is necessary to offset any
34 amounts that were erroneously paid to a different taxing
-48- LRB9100762PTpk
1 body, and not including an amount equal to the amount of
2 refunds made during the second preceding calendar month by
3 the Department on behalf of such municipality, and not
4 including any amount that the Department determines is
5 necessary to offset any amounts that were payable to a
6 different taxing body but were erroneously paid to the
7 municipality. Within 10 days after receipt by the Comptroller
8 of the disbursement certification to the municipalities
9 provided for in this Section to be given to the Comptroller
10 by the Department, the Comptroller shall cause the orders to
11 be drawn for the respective amounts in accordance with the
12 directions contained in the certification.
13 In addition to the disbursement required by the preceding
14 paragraph and in order to mitigate delays caused by
15 distribution procedures, an allocation shall, if requested,
16 be made within 10 days after January 14, 1991, and in
17 November of 1991 and each year thereafter, to each
18 municipality that received more than $500,000 during the
19 preceding fiscal year, (July 1 through June 30) whether
20 collected by the municipality or disbursed by the Department
21 as required by this Section. Within 10 days after January 14,
22 1991, participating municipalities shall notify the
23 Department in writing of their intent to participate. In
24 addition, for the initial distribution, participating
25 municipalities shall certify to the Department the amounts
26 collected by the municipality for each month under its home
27 rule occupation and service occupation tax during the period
28 July 1, 1989 through June 30, 1990. The allocation within 10
29 days after January 14, 1991, shall be in an amount equal to
30 the monthly average of these amounts, excluding the 2 months
31 of highest receipts. The monthly average for the period of
32 July 1, 1990 through June 30, 1991 will be determined as
33 follows: the amounts collected by the municipality under its
34 home rule occupation and service occupation tax during the
-49- LRB9100762PTpk
1 period of July 1, 1990 through September 30, 1990, plus
2 amounts collected by the Department and paid to such
3 municipality through June 30, 1991, excluding the 2 months of
4 highest receipts. The monthly average for each subsequent
5 period of July 1 through June 30 shall be an amount equal to
6 the monthly distribution made to each such municipality under
7 the preceding paragraph during this period, excluding the 2
8 months of highest receipts. The distribution made in
9 November 1991 and each year thereafter under this paragraph
10 and the preceding paragraph shall be reduced by the amount
11 allocated and disbursed under this paragraph in the preceding
12 period of July 1 through June 30. The Department shall
13 prepare and certify to the Comptroller for disbursement the
14 allocations 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 a coal or other mineral, other than coal, mined in Illinois
18 is a sale at retail at the place where the coal or other
19 mineral mined in Illinois is extracted from the earth. This
20 paragraph does not apply to a coal or other mineral when it
21 is delivered or shipped by the seller to the purchaser at a
22 point outside Illinois so that the sale is exempt under the
23 United States Constitution as a sale in interstate or foreign
24 commerce.
25 Nothing in this Section shall be construed to authorize a
26 municipality to impose a tax upon the privilege of engaging
27 in any business which under the Constitution of the United
28 States 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 the
-50- LRB9100762PTpk
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 the adoption and filing. However, a municipality
15 located in a county with a population in excess of 3,000,000
16 that elected to become a home rule unit at the general
17 primary election in 1994 may adopt an ordinance or resolution
18 imposing the tax under this Section and file a certified copy
19 of the ordinance or resolution with the Department on or
20 before July 1, 1994. The Department shall then proceed to
21 administer and enforce this Section as of October 1, 1994.
22 Beginning April 1, 1998, an ordinance or resolution imposing
23 or discontinuing the tax hereunder or effecting a change in
24 the rate thereof shall either (i) be adopted and a certified
25 copy thereof filed with the Department on or before the first
26 day of April, whereupon the Department shall proceed to
27 administer and enforce this Section as of the first day of
28 July next following the adoption and filing; or (ii) be
29 adopted and a certified copy thereof filed with the
30 Department on or before the first day of October, whereupon
31 the Department shall proceed to administer and enforce this
32 Section as of the first day of January next following the
33 adoption and filing.
34 When certifying the amount of a monthly disbursement to a
-51- LRB9100762PTpk
1 municipality under this Section, the Department shall
2 increase or decrease the amount by an amount necessary to
3 offset any misallocation of previous disbursements. The
4 offset amount shall be the amount erroneously disbursed
5 within the previous 6 months from the time a misallocation is
6 discovered.
7 Any unobligated balance remaining in the Municipal
8 Retailers' Occupation Tax Fund on December 31, 1989, which
9 fund was abolished by Public Act 85-1135, and all receipts of
10 municipal tax as a result of audits of liability periods
11 prior to January 1, 1990, shall be paid into the Local
12 Government Tax Fund for distribution as provided by this
13 Section prior to the enactment of Public Act 85-1135. All
14 receipts of municipal tax as a result of an assessment not
15 arising from an audit, for liability periods prior to January
16 1, 1990, shall be paid into the Local Government Tax Fund for
17 distribution before July 1, 1990, as provided by this Section
18 prior to the enactment of Public Act 85-1135; and on and
19 after July 1, 1990, all such receipts shall be distributed as
20 provided in Section 6z-18 of the State Finance Act.
21 As used in this Section, "municipal" and "municipality"
22 means a city, village or incorporated town, including an
23 incorporated town that has superseded a civil township.
24 This Section shall be known and may be cited as the Home
25 Rule Municipal Retailers' Occupation Tax Act.
26 (Source: P.A. 90-689, eff. 7-31-98.)
27 (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
28 Sec. 8-11-1.3. The corporate authorities of a non-home
29 rule municipality with more than 130,000 but less than
30 2,000,000 inhabitants may impose a tax upon all persons
31 engaged in the business of selling tangible personal
32 property, other than on an item of tangible personal property
33 which is titled and registered by an agency of this State's
-52- LRB9100762PTpk
1 Government, at retail in the municipality at the rate of 1/2
2 of 1% for expenditure on public infrastructure as defined in
3 Section 8-11-1.2 if approved by referendum as provided in
4 Section 8-11-1.1, of the gross receipts from such sales made
5 in the course of such business. The tax imposed by a
6 municipality pursuant to this Section and all civil penalties
7 that may be assessed as an incident thereof shall be
8 collected and enforced by the State Department of Revenue.
9 The certificate of registration which is issued by the
10 Department to a retailer under the Retailers' Occupation Tax
11 Act shall permit such retailer to engage in a business which
12 is taxable under any ordinance or resolution enacted pursuant
13 to this Section without registering separately with the
14 Department under such ordinance or resolution or under this
15 Section. The Department shall have full power to administer
16 and enforce this Section; to collect all taxes and penalties
17 due hereunder; to dispose of taxes and penalties so collected
18 in the manner hereinafter provided, and to determine all
19 rights to credit memoranda, arising on account of the
20 erroneous payment of tax or penalty hereunder. In the
21 administration of, and compliance with, this Section, the
22 Department and persons who are subject to this Section shall
23 have the same rights, remedies, privileges, immunities,
24 powers and duties, and be subject to the same conditions,
25 restrictions, limitations, penalties and definitions of
26 terms, and employ the same modes of procedure, as are
27 prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
28 through 2-65 (in respect to all provisions therein other than
29 the State rate of tax), 2c, 3 (except as to the disposition
30 of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e,
31 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
32 12 and 13 of the Retailers' Occupation Tax Act and Section
33 3-7 of the Uniform Penalty and Interest Act as fully as if
34 those provisions were set forth herein.
-53- LRB9100762PTpk
1 Persons subject to any tax imposed pursuant to the
2 authority granted in this Section may reimburse themselves
3 for their seller's tax liability hereunder by separately
4 stating such tax as an additional charge, which charge may be
5 stated in combination, in a single amount, with State tax
6 which sellers are required to collect under the Use Tax Act,
7 pursuant to such bracket schedules as the Department may
8 prescribe.
9 Whenever the Department determines that a refund should
10 be made under this Section to a claimant instead of issuing a
11 credit memorandum, the Department shall notify the State
12 Comptroller, who shall cause the order to be drawn for the
13 amount specified, and to the person named, in such
14 notification from the Department. Such refund shall be paid
15 by the State Treasurer out of the non-home rule municipal
16 retailers' occupation tax fund.
17 The Department shall forthwith pay over to the State
18 Treasurer, ex officio, as trustee, all taxes and penalties
19 collected hereunder. On or before the 25th day of each
20 calendar month, the Department shall prepare and certify to
21 the Comptroller the disbursement of stated sums of money to
22 named municipalities, the municipalities to be those from
23 which retailers have paid taxes or penalties hereunder to the
24 Department during the second preceding calendar month. The
25 amount to be paid to each municipality shall be the amount
26 (not including credit memoranda) collected hereunder during
27 the second preceding calendar month by the Department plus an
28 amount the Department determines is necessary to offset any
29 amounts which were erroneously paid to a different taxing
30 body, and not including an amount equal to the amount of
31 refunds made during the second preceding calendar month by
32 the Department on behalf of such municipality, and not
33 including any amount which the Department determines is
34 necessary to offset any amounts which were payable to a
-54- LRB9100762PTpk
1 different taxing body but were erroneously paid to the
2 municipality. Within 10 days after receipt, by the
3 Comptroller, of the disbursement certification to the
4 municipalities, provided for in this Section to be given to
5 the Comptroller by the Department, the Comptroller shall
6 cause the orders to be drawn for the respective amounts in
7 accordance with the directions contained in such
8 certification.
9 For the purpose of determining the local governmental
10 unit whose tax is applicable, a retail sale, by a producer of
11 a coal or other mineral, other than coal, mined in Illinois,
12 is a sale at retail at the place where the coal or other
13 mineral mined in Illinois is extracted from the earth. This
14 paragraph does not apply to a coal or other mineral when it
15 is delivered or shipped by the seller to the purchaser at a
16 point outside Illinois so that the sale is exempt under the
17 Federal Constitution as a sale in interstate or foreign
18 commerce.
19 Nothing in this Section shall be construed to authorize a
20 municipality to impose a tax upon the privilege of engaging
21 in any business which under the constitution of the United
22 States may not be made the subject of taxation by this State.
23 When certifying the amount of a monthly disbursement to a
24 municipality under this Section, the Department shall
25 increase or decrease such amount by an amount necessary to
26 offset any misallocation of previous disbursements. The
27 offset amount shall be the amount erroneously disbursed
28 within the previous 6 months from the time a misallocation is
29 discovered.
30 As used in this Section, "municipal" and "municipality"
31 means a city, village or incorporated town, including an
32 incorporated town which has superseded a civil township.
33 This Section shall be known and may be cited as the
34 "Non-Home Rule Municipal Retailers' Occupation Tax Act".
-55- LRB9100762PTpk
1 (Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
2 (65 ILCS 5/8-11-1.6)
3 Sec. 8-11-1.6. Non-home rule municipal retailers
4 occupation tax; municipalities between 20,000 and 25,000. The
5 corporate authorities of a non-home rule municipality with a
6 population of more than 20,000 but less than 25,000 that has,
7 prior to January 1, 1987, established a Redevelopment Project
8 Area that has been certified as a State Sales Tax Boundary
9 and has issued bonds or otherwise incurred indebtedness to
10 pay for costs in excess of $5,000,000, which is secured in
11 part by a tax increment allocation fund, in accordance with
12 the provisions of Division 11-74.4 of this Code may, by
13 passage of an ordinance, impose a tax upon all persons
14 engaged in the business of selling tangible personal
15 property, other than on an item of tangible personal property
16 that is titled and registered by an agency of this State's
17 Government, at retail in the municipality. This tax may not
18 be imposed on the sales of food for human consumption that is
19 to be consumed off the premises where it is sold (other than
20 alcoholic beverages, soft drinks, and food that has been
21 prepared for immediate consumption) and prescription and
22 nonprescription medicines, drugs, medical appliances and
23 insulin, urine testing materials, syringes, and needles used
24 by diabetics. If imposed, the tax shall only be imposed in
25 .25% increments of the gross receipts from such sales made in
26 the course of business. Any tax imposed by a municipality
27 under this Sec. and all civil penalties that may be assessed
28 as an incident thereof shall be collected and enforced by the
29 State Department of Revenue. An ordinance imposing a tax
30 hereunder or effecting a change in the rate thereof shall be
31 adopted and a certified copy thereof filed with the
32 Department on or before the first day of October, whereupon
33 the Department shall proceed to administer and enforce this
-56- LRB9100762PTpk
1 Section as of the first day of January next following such
2 adoption and filing. The certificate of registration that is
3 issued by the Department to a retailer under the Retailers'
4 Occupation Tax Act shall permit the retailer to engage in a
5 business that is taxable under any ordinance or resolution
6 enacted under this Section without registering separately
7 with the Department under the ordinance or resolution or
8 under this Section. The Department shall have full power to
9 administer and enforce this Section, to collect all taxes and
10 penalties due hereunder, to dispose of taxes and penalties so
11 collected in the manner hereinafter provided, and to
12 determine all rights to credit memoranda, arising on account
13 of the erroneous payment of tax or penalty hereunder. In the
14 administration of, and compliance with this Section, the
15 Department and persons who are subject to this Section shall
16 have the same rights, remedies, privileges, immunities,
17 powers, and duties, and be subject to the same conditions,
18 restrictions, limitations, penalties, and definitions of
19 terms, and employ the same modes of procedure, as are
20 prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
21 through 2-65 (in respect to all provisions therein other than
22 the State rate of tax), 2c, 3 (except as to the disposition
23 of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e,
24 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
25 12 and 13 of the Retailers' Occupation Tax Act and Section
26 3-7 of the Uniform Penalty and Interest Act as fully as if
27 those provisions were set forth herein.
28 A tax may not be imposed by a municipality under this
29 Section unless the municipality also imposes a tax at the
30 same rate under Section 8-11-1.7 of this Act.
31 Persons subject to any tax imposed under the authority
32 granted in this Section, may reimburse themselves for their
33 seller's tax liability hereunder by separately stating the
34 tax as an additional charge, which charge may be stated in
-57- LRB9100762PTpk
1 combination, in a single amount, with State tax which sellers
2 are required to collect under the Use Tax Act, pursuant to
3 such bracket schedules as the Department may prescribe.
4 Whenever the Department determines that a refund should
5 be made under this Section 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 Non-Home Rule Municipal Retailers'
11 Occupation Tax Fund, which is hereby created.
12 The Department shall forthwith pay over to the State
13 Treasurer, ex officio, as trustee, all taxes and penalties
14 collected hereunder. On or before the 25th day of each
15 calendar month, the Department shall prepare and certify to
16 the Comptroller the disbursement of stated sums of money to
17 named municipalities, the municipalities to be those from
18 which retailers have paid taxes or penalties hereunder to the
19 Department during the second preceding calendar month. The
20 amount to be paid to each municipality shall be the amount
21 (not including credit memoranda) collected hereunder during
22 the second preceding calendar month by the Department plus an
23 amount the Department determines is necessary to offset any
24 amounts that were erroneously paid to a different taxing
25 body, and not including an amount equal to the amount of
26 refunds made during the second preceding calendar month by
27 the Department on behalf of the municipality, and not
28 including any amount that the Department determines is
29 necessary to offset any amounts that were payable to a
30 different taxing body but were erroneously paid to the
31 municipality. Within 10 days after receipt by the
32 Comptroller of the disbursement certification to the
33 municipalities provided for in this Section to be given to
34 the Comptroller by the Department, the Comptroller shall
-58- LRB9100762PTpk
1 cause the orders to be drawn for the respective amounts in
2 accordance with the directions contained in the
3 certification.
4 For the purpose of determining the local governmental
5 unit whose tax is applicable, a retail sale by a producer of
6 a coal or other mineral, other than coal, mined in Illinois
7 is a sale at retail at the place where the coal or other
8 mineral mined in Illinois is extracted from the earth. This
9 paragraph does not apply to a coal or other mineral when it
10 is delivered or shipped by the seller to the purchaser at a
11 point outside Illinois so that the sale is exempt under the
12 federal Constitution as a sale in interstate or foreign
13 commerce.
14 Nothing in this Section shall be construed to authorize a
15 municipality to impose a tax upon the privilege of engaging
16 in any business which under the constitution of the United
17 States may not be made the subject of taxation by this State.
18 When certifying the amount of a monthly disbursement to a
19 municipality under this Section, the Department shall
20 increase or decrease the amount by an amount necessary to
21 offset any misallocation of previous disbursements. The
22 offset amount shall be the amount erroneously disbursed
23 within the previous 6 months from the time a misallocation is
24 discovered.
25 As used in this Section, "municipal" and "municipality"
26 means a city, village, or incorporated town, including an
27 incorporated town that has superseded a civil township.
28 (Source: P.A. 88-334; 89-399, eff. 8-20-95.)
29 Section 35. The Civic Center Code is amended by changing
30 Section 245-12 as follows:
31 (70 ILCS 200/245-12)
32 Sec. 245-12. Use and occupation taxes.
-59- LRB9100762PTpk
1 (a) The Authority may adopt a resolution that authorizes
2 a referendum on the question of whether the Authority shall
3 be authorized to impose a retailers' occupation tax, a
4 service occupation tax, and a use tax in one-quarter percent
5 increments at a rate not to exceed 1%. The Authority shall
6 certify the question to the proper election authorities who
7 shall submit the question to the voters of the metropolitan
8 area at the next regularly scheduled election in accordance
9 with the general election law. The question shall be in
10 substantially the following form:
11 "Shall the Salem Civic Center Authority be authorized to
12 impose a retailers' occupation tax, a service occupation
13 tax, and a use tax at the rate of (rate) for the sole
14 purpose of obtaining funds for the support, construction,
15 maintenance, or financing of a facility of the
16 Authority?"
17 Votes shall be recorded as "yes" or "no". If a majority
18 of all votes cast on the proposition are in favor of the
19 proposition, the Authority is authorized to impose the tax.
20 (b) The Authority shall impose the retailers' occupation
21 tax upon all persons engaged in the business of selling
22 tangible personal property at retail in the metropolitan
23 area, at the rate approved by referendum, on the gross
24 receipts from the sales made in the course of such business
25 within the metropolitan area. The tax imposed under this
26 Section and all civil penalties that may be assessed as an
27 incident thereof shall be collected and enforced by the
28 Department of Revenue. The Department has full power to
29 administer and enforce this Section; to collect all taxes and
30 penalties so collected in the manner provided in this
31 Section; and to determine all rights to credit memoranda
32 arising on account of the erroneous payment of tax or penalty
33 hereunder. In the administration of, and compliance with,
34 this Section, the Department and persons who are subject to
-60- LRB9100762PTpk
1 this Section shall (i) have the same rights, remedies,
2 privileges, immunities, powers and duties, (ii) be subject to
3 the same conditions, restrictions, limitations, penalties,
4 exclusions, exemptions, and definitions of terms, and (iii)
5 employ the same modes of procedure as are prescribed in
6 Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2,
7 2-5, 2-5.5, 2-10 (in respect to all provisions therein other
8 than the State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3
9 (except as to the disposition of taxes and penalties
10 collected and provisions related to quarter monthly
11 payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l,
12 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
13 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
14 Penalty and Interest Act, as fully as if those provisions
15 were set forth in this subsection.
16 Persons subject to any tax imposed under this subsection
17 may reimburse themselves for their seller's tax liability by
18 separately stating the tax as an additional charge, which
19 charge may be stated in combination, in a single amount, with
20 State taxes that sellers are required to collect, in
21 accordance with such bracket schedules as the Department may
22 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 If a tax is imposed under this subsection (b), a tax
32 shall also be imposed at the same rate under subsections (c)
33 and (d) of this Section.
34 For the purpose of determining whether a tax authorized
-61- LRB9100762PTpk
1 under this Section is applicable, a retail sale, by a
2 producer of a coal or other mineral, other than coal, mined
3 in Illinois, is a sale at retail at the place where the coal
4 or other mineral mined in Illinois is extracted from the
5 earth. This paragraph does not apply to a coal or other
6 mineral when it is delivered or shipped by the seller to the
7 purchaser at a point outside Illinois so that the sale is
8 exempt under the Federal Constitution as a sale in interstate
9 or foreign commerce.
10 Nothing in this Section shall be construed to authorize
11 the Authority to impose a tax upon the privilege of engaging
12 in any business which under the Constitution of the United
13 States may not be made the subject of taxation by this State.
14 (c) If a tax has been imposed under subsection (b), a
15 service occupation tax shall also be imposed at the same rate
16 upon all persons engaged, in the metropolitan area, in the
17 business of making sales of service, who, as an incident to
18 making those sales of service, transfer tangible personal
19 property within the metropolitan area as an incident to a
20 sale of service. The tax imposed under this subsection and
21 all civil penalties that may be assessed as an incident
22 thereof shall be collected and enforced by the Department of
23 Revenue. The Department has full power to administer and
24 enforce this paragraph; to collect all taxes and penalties
25 due hereunder; to dispose of taxes and penalties so collected
26 in the manner hereinafter provided; and to determine all
27 rights to credit memoranda arising on account of the
28 erroneous payment of tax or penalty hereunder. In the
29 administration of, and compliance with this paragraph, the
30 Department and persons who are subject to this paragraph
31 shall (i) have the same rights, remedies, privileges,
32 immunities, powers, and duties, (ii) be subject to the same
33 conditions, restrictions, limitations, penalties, exclusions,
34 exemptions, and definitions of terms, and (iii) employ the
-62- LRB9100762PTpk
1 same modes of procedure as are prescribed in Sections 2
2 (except that the reference to State in the definition of
3 supplier maintaining a place of business in this State shall
4 mean the metropolitan area), 2a, 2b, 3 through 3-55 (in
5 respect to all provisions therein other than the State rate
6 of tax), 4 (except that the reference to the State shall be
7 to the Authority), 5, 7, 8 (except that the jurisdiction to
8 which the tax shall be a debt to the extent indicated in that
9 Section 8 shall be the Authority), 9 (except as to the
10 disposition of taxes and penalties collected, and except that
11 the returned merchandise credit for this tax may not be taken
12 against any State tax), 11, 12 (except the reference therein
13 to Section 2b of the Retailers' Occupation Tax Act), 13
14 (except that any reference to the State shall mean the
15 Authority), 15, 16, 17, 18, 19 and 20 of the Service
16 Occupation Tax Act and Section 3-7 of the Uniform Penalty and
17 Interest Act, as fully as if those provisions were set forth
18 herein.
19 Persons subject to any tax imposed under the authority
20 granted in this subsection may reimburse themselves for their
21 serviceman's tax liability by separately stating the tax as
22 an additional charge, which charge may be stated in
23 combination, in a single amount, with State tax that
24 servicemen are authorized to collect under the Service Use
25 Tax Act, in accordance with such bracket schedules as the
26 Department may prescribe.
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 warrant to be drawn
31 for the amount specified, and to the person named, in the
32 notification from the Department. The refund shall be paid
33 by the State Treasurer out of the tax fund referenced under
34 paragraph (g) of this Section.
-63- LRB9100762PTpk
1 Nothing in this paragraph shall be construed to authorize
2 the Authority to impose a tax upon the privilege of engaging
3 in any business which under the Constitution of the United
4 States may not be made the subject of taxation by the State.
5 (d) If a tax has been imposed under subsection (b), a
6 use tax shall also be imposed at the same rate upon the
7 privilege of using, in the metropolitan area, any item of
8 tangible personal property that is purchased outside the
9 metropolitan area at retail from a retailer, and that is
10 titled or registered at a location within the metropolitan
11 area with an agency of this State's government. "Selling
12 price" is defined as in the Use Tax Act. The tax shall be
13 collected from persons whose Illinois address for titling or
14 registration purposes is given as being in the metropolitan
15 area. The tax shall be collected by the Department of
16 Revenue for the Authority. The tax must be paid to the State,
17 or an exemption determination must be obtained from the
18 Department of Revenue, before the title or certificate of
19 registration for the property may be issued. The tax or
20 proof of exemption may be transmitted to the Department by
21 way of the State agency with which, or the State officer with
22 whom, the tangible personal property must be titled or
23 registered if the Department and the State agency or State
24 officer determine that this procedure will expedite the
25 processing of applications for title or registration.
26 The Department has full power to administer and enforce
27 this paragraph; to collect all taxes, penalties and interest
28 due hereunder; to dispose of taxes, penalties and interest so
29 collected in the manner hereinafter provided; and to
30 determine all rights to credit memoranda or refunds arising
31 on account of the erroneous payment of tax, penalty or
32 interest hereunder. In the administration of, and compliance
33 with, this subsection, the Department and persons who are
34 subject to this paragraph shall (i) have the same rights,
-64- LRB9100762PTpk
1 remedies, privileges, immunities, powers, and duties, (ii) be
2 subject to the same conditions, restrictions, limitations,
3 penalties, exclusions, exemptions, and definitions of terms,
4 and (iii) employ the same modes of procedure as are
5 prescribed in Sections 2 (except the definition of "retailer
6 maintaining a place of business in this State"), 3, 3-5,
7 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, 4, 6, 7, 8 (except
8 that the jurisdiction to which the tax shall be a debt to the
9 extent indicated in that Section 8 shall be the Authority), 9
10 (except provisions relating to quarter monthly payments), 10,
11 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22 of the Use
12 Tax Act and Section 3-7 of the Uniform Penalty and Interest
13 Act, that are not inconsistent with this paragraph, as fully
14 as if those provisions were set forth herein.
15 Whenever the Department determines that a refund should
16 be made under this subsection to a claimant instead of
17 issuing a credit memorandum, the Department shall notify the
18 State Comptroller, who shall cause the order to be drawn for
19 the amount specified, and to the person named, in the
20 notification from the Department. The refund shall be paid by
21 the State Treasurer out of the tax fund referenced under
22 paragraph (g) of this Section.
23 (e) A certificate of registration issued by the State
24 Department of Revenue to a retailer under the Retailers'
25 Occupation Tax Act or under the Service Occupation Tax Act
26 shall permit the registrant to engage in a business that is
27 taxed under the tax imposed under paragraphs (b), (c), or (d)
28 of this Section and no additional registration shall be
29 required. A certificate issued under the Use Tax Act or the
30 Service Use Tax Act shall be applicable with regard to any
31 tax imposed under paragraph (c) of this Section.
32 (f) The results of any election authorizing a
33 proposition to impose a tax under this Section or effecting a
34 change in the rate of tax shall be certified by the proper
-65- LRB9100762PTpk
1 election authorities and filed with the Illinois Department
2 on or before the first day of April. In addition, an
3 ordinance imposing, discontinuing, or effecting a change in
4 the rate of tax under this Section shall be adopted and a
5 certified copy thereof filed with the Department on or before
6 the first day of April. After proper receipt of such
7 certifications, the Department shall proceed to administer
8 and enforce this Section as of the first day of July next
9 following such adoption and filing.
10 (g) The Department of Revenue shall, upon collecting any
11 taxes and penalties as provided in this Section, pay the
12 taxes and penalties over to the State Treasurer as trustee
13 for the Authority. The taxes and penalties shall be held in a
14 trust fund outside the State Treasury. On or before the 25th
15 day of each calendar month, the Department of Revenue shall
16 prepare and certify to the Comptroller of the State of
17 Illinois the amount to be paid to the Authority, which shall
18 be the balance in the fund, less any amount determined by the
19 Department to be necessary for the payment of refunds. Within
20 10 days after receipt by the Comptroller of the certification
21 of the amount to be paid to the Authority, the Comptroller
22 shall cause an order to be drawn for payment for the amount
23 in accordance with the directions contained in the
24 certification. Amounts received from the tax imposed under
25 this Section shall be used only for the support,
26 construction, maintenance, or financing of a facility of the
27 Authority.
28 (h) When certifying the amount of a monthly disbursement
29 to the Authority under this Section, the Department shall
30 increase or decrease the amounts by an amount necessary to
31 offset any miscalculation of previous disbursements. The
32 offset amount shall be the amount erroneously disbursed
33 within the previous 6 months from the time a miscalculation
34 is discovered.
-66- LRB9100762PTpk
1 (i) This Section may be cited as the Salem Civic Center
2 Use and Occupation Tax Law.
3 (Source: P.A. 90-328, eff. 1-1-98.)
4 Section 40. The Local Mass Transit District Act is
5 amended by changing Section 5.01 as follows:
6 (70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
7 Sec. 5.01. Metro East Mass Transit District; use and
8 occupation taxes.
9 (a) The Board of Trustees of any Metro East Mass Transit
10 District may, by ordinance adopted with the concurrence of
11 two-thirds of the then trustees, impose throughout the
12 District any or all of the taxes and fees provided in this
13 Section. All taxes and fees imposed under this Section shall
14 be used only for public mass transportation systems, and the
15 amount used to provide mass transit service to unserved areas
16 of the District shall be in the same proportion to the total
17 proceeds as the number of persons residing in the unserved
18 areas is to the total population of the District. Except as
19 otherwise provided in this Act, taxes imposed under this
20 Section and civil penalties imposed incident thereto shall be
21 collected and enforced by the State Department of Revenue.
22 The Department shall have the power to administer and enforce
23 the taxes and to determine all rights for refunds for
24 erroneous payments of the taxes.
25 (b) The Board may impose a Metro East Mass Transit
26 District Retailers' Occupation Tax upon all persons engaged
27 in the business of selling tangible personal property at
28 retail in the district at a rate of 1/4 of 1%, or as
29 authorized under subsection (d-5) of this Section, of the
30 gross receipts from the sales made in the course of such
31 business within the district. The tax imposed under this
32 Section and all civil penalties that may be assessed as an
-67- LRB9100762PTpk
1 incident thereof shall be collected and enforced by the State
2 Department of Revenue. The Department shall have full power
3 to administer and enforce this Section; to collect all taxes
4 and penalties so collected in the manner hereinafter
5 provided; and to determine all rights to credit memoranda
6 arising on account of the erroneous payment of tax or penalty
7 hereunder. In the administration of, and compliance with,
8 this Section, the Department and persons who are subject to
9 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,
12 exclusions, exemptions and definitions of terms and employ
13 the same modes of procedure, as are prescribed in Sections 1,
14 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect
15 to all provisions therein other than the State rate of tax),
16 2c, 3 (except as to the disposition of taxes and penalties
17 collected), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
18 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the
19 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
20 Penalty and Interest Act, as fully as if those provisions
21 were set forth herein.
22 Persons subject to any tax imposed under the Section may
23 reimburse themselves for their seller's tax liability
24 hereunder by separately stating the tax as an additional
25 charge, which charge may be stated in combination, in a
26 single amount, with State taxes that sellers are required to
27 collect under the Use Tax Act, in accordance with such
28 bracket schedules as the Department may prescribe.
29 Whenever the Department determines that a refund should
30 be made under this Section to a claimant instead of issuing a
31 credit memorandum, the Department shall notify the State
32 Comptroller, who shall cause the warrant to be drawn for the
33 amount specified, and to the person named, in the
34 notification from the Department. The refund shall be paid
-68- LRB9100762PTpk
1 by the State Treasurer out of the Metro East Mass Transit
2 District tax fund established under paragraph (g) of this
3 Section.
4 If a tax is imposed under this subsection (b), a tax
5 shall also be imposed under subsections (c) and (d) of this
6 Section.
7 For the purpose of determining whether a tax authorized
8 under this Section is applicable, a retail sale, by a
9 producer of a coal or other mineral, other than coal, mined
10 in Illinois, is a sale at retail at the place where the coal
11 or other mineral mined in Illinois is extracted from the
12 earth. This paragraph does not apply to a coal or other
13 mineral when it is delivered or shipped by the seller to the
14 purchaser at a point outside Illinois so that the sale is
15 exempt under the Federal Constitution as a sale in interstate
16 or foreign commerce.
17 Nothing in this Section shall be construed to authorize
18 the Metro East Mass Transit District to impose a tax upon the
19 privilege of engaging in any business which under the
20 Constitution of the United States may not be made the subject
21 of taxation by this State.
22 (c) If a tax has been imposed under subsection (b), a
23 Metro East Mass Transit District Service Occupation Tax shall
24 also be imposed upon all persons engaged, in the district, in
25 the business of making sales of service, who, as an incident
26 to making those sales of service, transfer tangible personal
27 property within the District, either in the form of tangible
28 personal property or in the form of real estate as an
29 incident to a sale of service. The tax rate shall be 1/4%, or
30 as authorized under subsection (d-5) of this Section, of the
31 selling price of tangible personal property so transferred
32 within the district. The tax imposed under this paragraph
33 and all civil penalties that may be assessed as an incident
34 thereof shall be collected and enforced by the State
-69- LRB9100762PTpk
1 Department of Revenue. The Department shall have full power
2 to administer and enforce this paragraph; to collect all
3 taxes and penalties due hereunder; to dispose of taxes and
4 penalties so collected in the manner hereinafter provided;
5 and to determine all rights to credit memoranda arising on
6 account of the erroneous payment of tax or penalty hereunder.
7 In the administration of, and compliance with this paragraph,
8 the Department and persons who are subject to this paragraph
9 shall have the same rights, remedies, privileges, immunities,
10 powers and duties, and be subject to the same conditions,
11 restrictions, limitations, penalties, exclusions, exemptions
12 and definitions of terms and employ the same modes of
13 procedure as are prescribed in Sections 1a-1, 2 (except that
14 the reference to State in the definition of supplier
15 maintaining a place of business in this State shall mean the
16 Authority), 2a, 3 through 3-50 (in respect to all provisions
17 therein other than the State rate of tax), 4 (except that the
18 reference to the State shall be to the Authority), 5, 7, 8
19 (except that the jurisdiction to which the tax shall be a
20 debt to the extent indicated in that Section 8 shall be the
21 District), 9 (except as to the disposition of taxes and
22 penalties collected, and except that the returned merchandise
23 credit for this tax may not be taken against any State tax),
24 10, 11, 12 (except the reference therein to Section 2b of the
25 Retailers' Occupation Tax Act), 13 (except that any reference
26 to the State shall mean the District), the first paragraph of
27 Section 15, 16, 17, 18, 19 and 20 of the Service Occupation
28 Tax Act and Section 3-7 of the Uniform Penalty and Interest
29 Act, as fully as if those provisions were set forth herein.
30 Persons subject to any tax imposed under the authority
31 granted in this paragraph may reimburse themselves for their
32 serviceman's tax liability hereunder by separately stating
33 the tax as an additional charge, which charge may be stated
34 in combination, in a single amount, with State tax that
-70- LRB9100762PTpk
1 servicemen are authorized to collect under the Service Use
2 Tax Act, in accordance with such bracket schedules as the
3 Department may prescribe.
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 warrant to be drawn for the
8 amount specified, and to the person named, in the
9 notification from the Department. The refund shall be paid
10 by the State Treasurer out of the Metro East Mass Transit
11 District tax fund established under paragraph (g) of this
12 Section.
13 Nothing in this paragraph shall be construed to authorize
14 the District to impose a tax upon the privilege of engaging
15 in any business which under the Constitution of the United
16 States may not be made the subject of taxation by the State.
17 (d) If a tax has been imposed under subsection (b), a
18 Metro East Mass Transit District Use Tax shall also be
19 imposed upon the privilege of using, in the district, any
20 item of tangible personal property that is purchased outside
21 the district at retail from a retailer, and that is titled or
22 registered with an agency of this State's government, at a
23 rate of 1/4%, or as authorized under subsection (d-5) of this
24 Section, of the selling price of the tangible personal
25 property within the District, as "selling price" is defined
26 in the Use Tax Act. The tax shall be collected from persons
27 whose Illinois address for titling or registration purposes
28 is given as being in the District. The tax shall be
29 collected by the Department of Revenue for the Metro East
30 Mass Transit District. The tax must be paid to the State, or
31 an exemption determination must be obtained from the
32 Department of Revenue, before the title or certificate of
33 registration for the property may be issued. The tax or
34 proof of exemption may be transmitted to the Department by
-71- LRB9100762PTpk
1 way of the State agency with which, or the State officer with
2 whom, the tangible personal property must be titled or
3 registered if the Department and the State agency or State
4 officer determine that this procedure will expedite the
5 processing of applications for title or registration.
6 The Department shall have full power to administer and
7 enforce this paragraph; to collect all taxes, penalties and
8 interest due hereunder; to dispose of taxes, penalties and
9 interest so collected in the manner hereinafter provided; and
10 to determine all rights to credit memoranda or refunds
11 arising on account of the erroneous payment of tax, penalty
12 or interest hereunder. In the administration of, and
13 compliance with, this paragraph, the Department and persons
14 who are subject to this paragraph shall have the same rights,
15 remedies, privileges, immunities, powers and duties, and be
16 subject to the same conditions, restrictions, limitations,
17 penalties, exclusions, exemptions and definitions of terms
18 and employ the same modes of procedure, as are prescribed in
19 Sections 2 (except the definition of "retailer maintaining a
20 place of business in this State"), 3 through 3-80 (except
21 provisions pertaining to the State rate of tax, and except
22 provisions concerning collection or refunding of the tax by
23 retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
24 pertaining to claims by retailers and except the last
25 paragraph concerning refunds), 20, 21 and 22 of the Use Tax
26 Act and Section 3-7 of the Uniform Penalty and Interest Act,
27 that are not inconsistent with this paragraph, as fully as if
28 those provisions were set forth herein.
29 Whenever the Department determines that a refund should
30 be made under this paragraph to a claimant instead of issuing
31 a credit memorandum, the Department shall notify the State
32 Comptroller, who shall cause the order to be drawn for the
33 amount specified, and to the person named, in the
34 notification from the Department. The refund shall be paid by
-72- LRB9100762PTpk
1 the State Treasurer out of the Metro East Mass Transit
2 District tax fund established under paragraph (g) of this
3 Section.
4 (d-5) The county board of any county participating in
5 the Metro East Mass Transit District may authorize, by
6 ordinance, a referendum on the question of whether the tax
7 rates for the Metro East Mass Transit District Retailers'
8 Occupation Tax, the Metro East Mass Transit District Service
9 Occupation Tax, and the Metro East Mass Transit District Use
10 Tax for the District should be increased from 0.25% to 0.75%.
11 Upon adopting the ordinance, the county board shall certify
12 the proposition to the proper election officials who shall
13 submit the proposition to the voters of the District at the
14 next election, in accordance with the general election law.
15 The proposition shall be in substantially the following
16 form:
17 Shall the tax rates for the Metro East Mass Transit
18 District Retailers' Occupation Tax, the Metro East Mass
19 Transit District Service Occupation Tax, and the Metro
20 East Mass Transit District Use Tax be increased from
21 0.25% to 0.75%?
22 The votes shall be recorded as "YES" or "NO". If a
23 majority of all votes cast on the proposition are for the
24 increase in the tax rates, the Metro East Mass Transit
25 District shall begin imposing the increased rates in the
26 District, and the Department of Revenue shall begin
27 collecting the increased amounts, as provided under this
28 Section. An ordinance imposing or discontinuing a tax
29 hereunder or effecting a change in the rate thereof shall be
30 adopted and a certified copy thereof filed with the
31 Department on or before the first day of October, whereupon
32 the Department shall proceed to administer and enforce this
33 Section as of the first day of January next following the
34 adoption and filing.
-73- LRB9100762PTpk
1 If the voters have approved a referendum under this
2 subsection, before November 1, 1994, to increase the tax rate
3 under this subsection, the Metro East Mass Transit District
4 Board of Trustees may adopt by a majority vote an ordinance
5 at any time before January 1, 1995 that excludes from the
6 rate increase tangible personal property that is titled or
7 registered with an agency of this State's government. The
8 ordinance excluding titled or registered tangible personal
9 property from the rate increase must be filed with the
10 Department at least 15 days before its effective date. At any
11 time after adopting an ordinance excluding from the rate
12 increase tangible personal property that is titled or
13 registered with an agency of this State's government, the
14 Metro East Mass Transit District Board of Trustees may adopt
15 an ordinance applying the rate increase to that tangible
16 personal property. The ordinance shall be adopted, and a
17 certified copy of that ordinance shall be filed with the
18 Department, on or before October 1, whereupon the Department
19 shall proceed to administer and enforce the rate increase
20 against tangible personal property titled or registered with
21 an agency of this State's government as of the following
22 January 1. After December 31, 1995, any reimposed rate
23 increase in effect under this subsection shall no longer
24 apply to tangible personal property titled or registered with
25 an agency of this State's government. Beginning January 1,
26 1996, the Board of Trustees of any Metro East Mass Transit
27 District may never reimpose a previously excluded tax rate
28 increase on tangible personal property titled or registered
29 with an agency of this State's government.
30 (d-6) If the Board of Trustees of any Metro East Mass
31 Transit District has imposed a rate increase under subsection
32 (d-5) and filed an ordinance with the Department of Revenue
33 excluding titled property from the higher rate, then that
34 Board may, by ordinance adopted with the concurrence of
-74- LRB9100762PTpk
1 two-thirds of the then trustees, impose throughout the
2 District a fee. The fee on the excluded property shall not
3 exceed $20 per retail transaction or an amount equal to the
4 amount of tax excluded, whichever is less, on tangible
5 personal property that is titled or registered with an agency
6 of this State's government. The Board of Trustees of any
7 Metro East Mass Transit District shall have full power to
8 administer and enforce this subsection and to determine all
9 rights to credit memoranda or refunds arising on account of
10 the erroneous payment of the fee hereunder. The Board shall
11 proceed to administer and enforce this subsection as of the
12 first day of the second month following the adoption of the
13 ordinance.
14 (d-7) If a fee has been imposed under subsection (d-6),
15 a fee shall also be imposed upon the privilege of using, in
16 the district, any item of tangible personal property that is
17 titled or registered with any agency of this State's
18 government, in an amount equal to the amount of the fee
19 imposed under subsection (d-6). The Board of Trustees of any
20 Metro East Mass Transit District shall have full power to
21 administer and enforce this subsection and to determine all
22 rights to credit memoranda or refunds arising on account of
23 the erroneous payment of the fee hereunder. The Board shall
24 proceed to administer and enforce this subsection
25 concurrently with the administration of the fee imposed under
26 subsection (d-6).
27 (d-8) No item of titled property shall be subject to
28 both the higher rate approved by referendum, as authorized
29 under subsection (d-5), and any fee imposed under subsection
30 (d-6) or (d-7).
31 (d-9) If fees have been imposed under subsections (d-6)
32 and (d-7), the Board shall forward a copy of the ordinance
33 adopting such fees, which shall include all zip codes in
34 whole or in part within the boundaries of the district, to
-75- LRB9100762PTpk
1 the Secretary of State within thirty days. By the 25th of
2 each month, the Secretary of State shall subsequently provide
3 the Board with a list of identifiable retail transactions
4 subject to the .25% rate occurring within the zip codes which
5 are in whole or in part within the boundaries of the district
6 and a list of title applications for addresses within the
7 boundaries of the district for the previous month.
8 (d-10) In the event that a retailer fails to pay
9 applicable fees within 30 days of the date of the
10 transaction, a penalty shall be assessed at the rate of 25%
11 of the amount of fees. Interest on both late fees and
12 penalties shall be assessed at the rate of 1% per month. All
13 fees, penalties, and attorney fees shall constitute a lien on
14 the personal and real property of the retailer. The Board of
15 Trustees of any Metro East Transit District shall have full
16 power to administer and enforce this subsection.
17 (e) A certificate of registration issued by the State
18 Department of Revenue to a retailer under the Retailers'
19 Occupation Tax Act or under the Service Occupation Tax Act
20 shall permit the registrant to engage in a business that is
21 taxed under the tax imposed under paragraphs (b), (c) or (d)
22 of this Section and no additional registration shall be
23 required under the tax. A certificate issued under the Use
24 Tax Act or the Service Use Tax Act shall be applicable with
25 regard to any tax imposed under paragraph (c) of this
26 Section.
27 (f) The Board may impose a replacement vehicle tax of
28 $50 on any passenger car, as defined in Section 1-157 of the
29 Illinois Vehicle Code, purchased within the district area by
30 or on behalf of an insurance company to replace a passenger
31 car of an insured person in settlement of a total loss claim.
32 The tax imposed may not become effective before the first day
33 of the month following the passage of the ordinance imposing
34 the tax and receipt of a certified copy of the ordinance by
-76- LRB9100762PTpk
1 the Department of Revenue. The Department of Revenue shall
2 collect the tax for the district in accordance with Sections
3 3-2002 and 3-2003 of the Illinois Vehicle Code.
4 The Department shall immediately pay over to the State
5 Treasurer, ex officio, as trustee, all taxes collected
6 hereunder. On or before the 25th day of each calendar month,
7 the Department shall prepare and certify to the Comptroller
8 the disbursement of stated sums of money to named districts,
9 the districts to be those from which retailers have paid
10 taxes or penalties hereunder to the Department during the
11 second preceding calendar month. The amount to be paid to
12 each district shall be the amount collected hereunder during
13 the second preceding calendar month by the Department, less
14 any amount determined by the Department to be necessary for
15 the payment of refunds. Within 10 days after receipt by the
16 Comptroller of the disbursement certification to the
17 districts, provided for in this Section to be given to the
18 Comptroller by the Department, the Comptroller shall cause
19 the orders to be drawn for the respective amounts in
20 accordance with the directions contained in the
21 certification.
22 (g) Any ordinance imposing or discontinuing any tax
23 under this Section shall be adopted and a certified copy
24 thereof filed with the Department on or before June 1,
25 whereupon the Department of Revenue shall proceed to
26 administer and enforce this Section on behalf of the Metro
27 East Mass Transit District as of September 1 next following
28 such adoption and filing. Beginning January 1, 1992, an
29 ordinance or resolution imposing or discontinuing the tax
30 hereunder shall be adopted and a certified copy thereof filed
31 with the Department on or before the first day of July,
32 whereupon the Department shall proceed to administer and
33 enforce this Section as of the first day of October next
34 following such adoption and filing. Beginning January 1,
-77- LRB9100762PTpk
1 1993, except as provided in subsection (d-5) of this Section,
2 an ordinance or resolution imposing or discontinuing the tax
3 hereunder shall be adopted and a certified copy thereof filed
4 with the Department on or before the first day of October,
5 whereupon the Department shall proceed to administer and
6 enforce this Section as of the first day of January next
7 following such adoption and filing.
8 (h) The State Department of Revenue shall, upon
9 collecting any taxes as provided in this Section, pay the
10 taxes over to the State Treasurer as trustee for the
11 District. The taxes shall be held in a trust fund outside the
12 State Treasury. On or before the 25th day of each calendar
13 month, the State Department of Revenue shall prepare and
14 certify to the Comptroller of the State of Illinois the
15 amount to be paid to the District, which shall be the then
16 balance in the fund, less any amount determined by the
17 Department to be necessary for the payment of refunds. Within
18 10 days after receipt by the Comptroller of the certification
19 of the amount to be paid to the District, the Comptroller
20 shall cause an order to be drawn for payment for the amount
21 in accordance with the direction in the certification.
22 (Source: P.A. 88-115; 88-672, eff. 12-14-94; 89-436, eff.
23 1-1-96; 89-705, eff. 1-31-97.)
24 Section 45. The Regional Transportation Authority Act is
25 amended by changing Section 4.03 as follows:
26 (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
27 Sec. 4.03. Taxes.
28 (a) In order to carry out any of the powers or purposes
29 of the Authority, the Board may by ordinance adopted with the
30 concurrence of 9 of the then Directors, impose throughout the
31 metropolitan region any or all of the taxes provided in this
32 Section. Except as otherwise provided in this Act, taxes
-78- LRB9100762PTpk
1 imposed under this Section and civil penalties imposed
2 incident thereto shall be collected and enforced by the State
3 Department of Revenue. The Department shall have the power to
4 administer and enforce the taxes and to determine all rights
5 for refunds for erroneous payments of the taxes.
6 (b) The Board may impose a public transportation tax
7 upon all persons engaged in the metropolitan region in the
8 business of selling at retail motor fuel for operation of
9 motor vehicles upon public highways. The tax shall be at a
10 rate not to exceed 5% of the gross receipts from the sales of
11 motor fuel in the course of the business. As used in this
12 Act, the term "motor fuel" shall have the same meaning as in
13 the Motor Fuel Tax Act. The Board may provide for details of
14 the tax. The provisions of any tax shall conform, as closely
15 as may be practicable, to the provisions of the Municipal
16 Retailers Occupation Tax Act, including without limitation,
17 conformity to penalties with respect to the tax imposed and
18 as to the powers of the State Department of Revenue to
19 promulgate and enforce rules and regulations relating to the
20 administration and enforcement of the provisions of the tax
21 imposed, except that reference in the Act to any municipality
22 shall refer to the Authority and the tax shall be imposed
23 only with regard to receipts from sales of motor fuel in the
24 metropolitan region, at rates as limited by this Section.
25 (c) In connection with the tax imposed under paragraph
26 (b) of this Section the Board may impose a tax upon the
27 privilege of using in the metropolitan region motor fuel for
28 the operation of a motor vehicle upon public highways, the
29 tax to be at a rate not in excess of the rate of tax imposed
30 under paragraph (b) of this Section. The Board may provide
31 for details of the tax.
32 (d) The Board may impose a motor vehicle parking tax
33 upon the privilege of parking motor vehicles at off-street
34 parking facilities in the metropolitan region at which a fee
-79- LRB9100762PTpk
1 is charged, and may provide for reasonable classifications in
2 and exemptions to the tax, for administration and enforcement
3 thereof and for civil penalties and refunds thereunder and
4 may provide criminal penalties thereunder, the maximum
5 penalties not to exceed the maximum criminal penalties
6 provided in the Retailers' Occupation Tax Act. The Authority
7 may collect and enforce the tax itself or by contract with
8 any unit of local government. The State Department of
9 Revenue shall have no responsibility for the collection and
10 enforcement unless the Department agrees with the Authority
11 to undertake the collection and enforcement. As used in this
12 paragraph, the term "parking facility" means a parking area
13 or structure having parking spaces for more than 2 vehicles
14 at which motor vehicles are permitted to park in return for
15 an hourly, daily, or other periodic fee, whether publicly or
16 privately owned, but does not include parking spaces on a
17 public street, the use of which is regulated by parking
18 meters.
19 (e) The Board may impose a Regional Transportation
20 Authority Retailers' Occupation Tax upon all persons engaged
21 in the business of selling tangible personal property at
22 retail in the metropolitan region. In Cook County the tax
23 rate shall be 1% of the gross receipts from sales of food for
24 human consumption that is to be consumed off the premises
25 where it is sold (other than alcoholic beverages, soft drinks
26 and food that has been prepared for immediate consumption)
27 and prescription and nonprescription medicines, drugs,
28 medical appliances and insulin, urine testing materials,
29 syringes and needles used by diabetics, and 3/4% of the gross
30 receipts from other taxable sales made in the course of that
31 business. In DuPage, Kane, Lake, McHenry, and Will Counties,
32 the tax rate shall be 1/4% of the gross receipts from all
33 taxable sales made in the course of that business. The tax
34 imposed under this Section and all civil penalties that may
-80- LRB9100762PTpk
1 be assessed as an incident thereof shall be collected and
2 enforced by the State Department of Revenue. The Department
3 shall have full power to administer and enforce this Section;
4 to collect all taxes and penalties so collected in the manner
5 hereinafter provided; and to determine all rights to credit
6 memoranda arising on account of the erroneous payment of tax
7 or penalty hereunder. In the administration of, and
8 compliance with this Section, the Department and persons who
9 are subject to this Section shall have the same rights,
10 remedies, privileges, immunities, powers and duties, and be
11 subject to the same conditions, restrictions, limitations,
12 penalties, exclusions, exemptions and definitions of terms,
13 and employ the same modes of procedure, as are prescribed in
14 Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
15 (in respect to all provisions therein other than the State
16 rate of tax), 2c, 3 (except as to the disposition of taxes
17 and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
18 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13
19 of the Retailers' Occupation Tax Act and Section 3-7 of the
20 Uniform Penalty and Interest Act, as fully as if those
21 provisions were set forth herein.
22 Persons subject to any tax imposed under the authority
23 granted in this Section may reimburse themselves for their
24 seller's tax liability hereunder by separately stating the
25 tax as an additional charge, which charge may be stated in
26 combination in a single amount with State taxes that sellers
27 are required to collect under the Use Tax Act, under any
28 bracket schedules the Department may prescribe.
29 Whenever the Department determines that a refund should
30 be made under this Section to a claimant instead of issuing a
31 credit memorandum, the Department shall notify the State
32 Comptroller, who shall cause the warrant to be drawn for the
33 amount specified, and to the person named, in the
34 notification from the Department. The refund shall be paid
-81- LRB9100762PTpk
1 by the State Treasurer out of the Regional Transportation
2 Authority tax fund established under paragraph (n) of this
3 Section.
4 If a tax is imposed under this subsection (e), a tax
5 shall also be imposed under subsections (f) and (g) of this
6 Section.
7 For the purpose of determining whether a tax authorized
8 under this Section is applicable, a retail sale by a producer
9 of a coal or other mineral, other than coal, mined in
10 Illinois, is a sale at retail at the place where the coal or
11 other mineral mined in Illinois is extracted from the earth.
12 This paragraph does not apply to a coal or other mineral when
13 it is delivered or shipped by the seller to the purchaser at
14 a point outside Illinois so that the sale is exempt under the
15 Federal Constitution as a sale in interstate or foreign
16 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
-82- LRB9100762PTpk
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
-83- LRB9100762PTpk
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 Persons subject to any tax imposed under the authority
9 granted in this paragraph may reimburse themselves for their
10 serviceman's tax liability hereunder by separately stating
11 the tax as an additional charge, that charge may be stated in
12 combination in a single amount with State tax that servicemen
13 are authorized to collect under the Service Use Tax Act,
14 under any bracket schedules the Department may prescribe.
15 Whenever the Department determines that a refund should
16 be made under this paragraph to a claimant instead of issuing
17 a credit memorandum, the Department shall notify the State
18 Comptroller, who shall cause the warrant to be drawn for the
19 amount specified, and to the person named in the notification
20 from the Department. The refund shall be paid by the State
21 Treasurer out of the Regional Transportation Authority tax
22 fund established under paragraph (n) of this Section.
23 Nothing in this paragraph shall be construed to authorize
24 the Authority to impose a tax upon the privilege of engaging
25 in any business that under the Constitution of the United
26 States may not be made the subject of taxation by the State.
27 (g) If a tax has been imposed under paragraph (e), a tax
28 shall also be imposed upon the privilege of using in the
29 metropolitan region, any item of tangible personal property
30 that is purchased outside the metropolitan region at retail
31 from a retailer, and that is titled or registered with an
32 agency of this State's government. In Cook County the tax
33 rate shall be 3/4% of the selling price of the tangible
34 personal property, as "selling price" is defined in the Use
-84- LRB9100762PTpk
1 Tax Act. In DuPage, Kane, Lake, McHenry and Will counties
2 the tax rate shall be 1/4% of the selling price of the
3 tangible personal property, as "selling price" is defined in
4 the Use Tax Act. The tax shall be collected from persons
5 whose Illinois address for titling or registration purposes
6 is given as being in the metropolitan region. The tax shall
7 be collected by the Department of Revenue for the Regional
8 Transportation Authority. The tax must be paid to the State,
9 or an exemption determination must be obtained from the
10 Department of Revenue, before the title or certificate of
11 registration for the property may be issued. The tax or proof
12 of exemption may be transmitted to the Department by way of
13 the State agency with which, or the State officer with whom,
14 the tangible personal property must be titled or registered
15 if the Department and the State agency or State officer
16 determine that this procedure will expedite the processing of
17 applications for title or registration.
18 The Department shall have full power to administer and
19 enforce this paragraph; to collect all taxes, penalties and
20 interest due hereunder; to dispose of taxes, penalties and
21 interest collected in the manner hereinafter provided; and to
22 determine all rights to credit memoranda or refunds arising
23 on account of the erroneous payment of tax, penalty or
24 interest hereunder. In the administration of and compliance
25 with this paragraph, the Department and persons who are
26 subject to this paragraph shall have the same rights,
27 remedies, privileges, immunities, powers and duties, and be
28 subject to the same conditions, restrictions, limitations,
29 penalties, exclusions, exemptions and definitions of terms
30 and employ the same modes of procedure, as are prescribed in
31 Sections 2 (except the definition of "retailer maintaining a
32 place of business in this State"), 3 through 3-80 (except
33 provisions pertaining to the State rate of tax, and except
34 provisions concerning collection or refunding of the tax by
-85- LRB9100762PTpk
1 retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
2 pertaining to claims by retailers and except the last
3 paragraph concerning refunds), 20, 21 and 22 of the Use Tax
4 Act, and are not inconsistent with this paragraph, as fully
5 as if those provisions were set forth herein.
6 Whenever the Department determines that a refund should
7 be made under this paragraph to a claimant instead of issuing
8 a credit memorandum, the Department shall notify the State
9 Comptroller, who shall cause the order to be drawn for the
10 amount specified, and to the person named in the notification
11 from the Department. The refund shall be paid by the State
12 Treasurer out of the Regional Transportation Authority tax
13 fund established under paragraph (n) of this Section.
14 (h) The Authority may impose a replacement vehicle tax
15 of $50 on any passenger car as defined in Section 1-157 of
16 the Illinois Vehicle Code purchased within the metropolitan
17 region by or on behalf of an insurance company to replace a
18 passenger car of an insured person in settlement of a total
19 loss claim. The tax imposed may not become effective before
20 the first day of the month following the passage of the
21 ordinance imposing the tax and receipt of a certified copy of
22 the ordinance by the Department of Revenue. The Department
23 of Revenue shall collect the tax for the Authority in
24 accordance with Sections 3-2002 and 3-2003 of the Illinois
25 Vehicle Code.
26 The Department shall immediately pay over to the State
27 Treasurer, ex officio, as trustee, all taxes collected
28 hereunder. On or before the 25th day of each calendar month,
29 the Department shall prepare and certify to the Comptroller
30 the disbursement of stated sums of money to the Authority.
31 The amount to be paid to the Authority shall be the amount
32 collected hereunder during the second preceding calendar
33 month by the Department, less any amount determined by the
34 Department to be necessary for the payment of refunds.
-86- LRB9100762PTpk
1 Within 10 days after receipt by the Comptroller of the
2 disbursement certification to the Authority provided for in
3 this Section to be given to the Comptroller by the
4 Department, the Comptroller shall cause the orders to be
5 drawn for that amount in accordance with the directions
6 contained in the certification.
7 (i) The Board may not impose any other taxes except as
8 it may from time to time be authorized by law to impose.
9 (j) 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), (e), (f) or
14 (g) 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 (k) The provisions of any tax imposed under paragraph
20 (c) of this Section shall conform as closely as may be
21 practicable to the provisions of the Use Tax Act, including
22 without limitation conformity as to penalties with respect to
23 the tax imposed and as to the powers of the State Department
24 of Revenue to promulgate and enforce rules and regulations
25 relating to the administration and enforcement of the
26 provisions of the tax imposed. The taxes shall be imposed
27 only on use within the metropolitan region and at rates as
28 provided in the paragraph.
29 (l) The Board in imposing any tax as provided in
30 paragraphs (b) and (c) of this Section, shall, after seeking
31 the advice of the State Department of Revenue, provide means
32 for retailers, users or purchasers of motor fuel for purposes
33 other than those with regard to which the taxes may be
34 imposed as provided in those paragraphs to receive refunds of
-87- LRB9100762PTpk
1 taxes improperly paid, which provisions may be at variance
2 with the refund provisions as applicable under the Municipal
3 Retailers Occupation Tax Act. The State Department of
4 Revenue may provide for certificates of registration for
5 users or purchasers of motor fuel for purposes other than
6 those with regard to which taxes may be imposed as provided
7 in paragraphs (b) and (c) of this Section to facilitate the
8 reporting and nontaxability of the exempt sales or uses.
9 (m) Any ordinance imposing or discontinuing any tax
10 under this Section shall be adopted and a certified copy
11 thereof filed with the Department on or before June 1,
12 whereupon the Department of Revenue shall proceed to
13 administer and enforce this Section on behalf of the Regional
14 Transportation Authority as of September 1 next following
15 such adoption and filing. Beginning January 1, 1992, an
16 ordinance or resolution imposing or discontinuing the tax
17 hereunder shall be adopted and a certified copy thereof filed
18 with the Department on or before the first day of July,
19 whereupon the Department shall proceed to administer and
20 enforce this Section as of the first day of October next
21 following such adoption and filing. Beginning January 1,
22 1993, an ordinance or resolution imposing or discontinuing
23 the tax hereunder shall be adopted and a certified copy
24 thereof filed with the Department on or before the first day
25 of October, whereupon the Department shall proceed to
26 administer and enforce this Section as of the first day of
27 January next following such adoption and filing.
28 (n) The State Department of Revenue shall, upon
29 collecting any taxes as provided in this Section, pay the
30 taxes over to the State Treasurer as trustee for the
31 Authority. The taxes shall be held in a trust fund outside
32 the State Treasury. On or before the 25th day of each
33 calendar month, the State Department of Revenue shall prepare
34 and certify to the Comptroller of the State of Illinois the
-88- LRB9100762PTpk
1 amount to be paid to the Authority, which shall be the then
2 balance in the fund, less any amount determined by the
3 Department to be necessary for the payment of refunds. The
4 State Department of Revenue shall also certify to the
5 Authority the amount of taxes collected in each County other
6 than Cook County in the metropolitan region less the amount
7 necessary for the payment of refunds to taxpayers in the
8 County. With regard to the County of Cook, the certification
9 shall specify the amount of taxes collected within the City
10 of Chicago less the amount necessary for the payment of
11 refunds to taxpayers in the City of Chicago and the amount
12 collected in that portion of Cook County outside of Chicago
13 less the amount necessary for the payment of refunds to
14 taxpayers in that portion of Cook County outside of Chicago.
15 Within 10 days after receipt by the Comptroller of the
16 certification of the amount to be paid to the Authority, the
17 Comptroller shall cause an order to be drawn for the payment
18 for the amount in accordance with the direction in the
19 certification.
20 In addition to the disbursement required by the preceding
21 paragraph, an allocation shall be made in July 1991 and each
22 year thereafter to the Regional Transportation Authority.
23 The allocation shall be made in an amount equal to the
24 average monthly distribution during the preceding calendar
25 year (excluding the 2 months of lowest receipts) and the
26 allocation shall include the amount of average monthly
27 distribution from the Regional Transportation Authority
28 Occupation and Use Tax Replacement Fund. The distribution
29 made in July 1992 and each year thereafter under this
30 paragraph and the preceding paragraph shall be reduced by the
31 amount allocated and disbursed under this paragraph in the
32 preceding calendar year. The Department of Revenue shall
33 prepare and certify to the Comptroller for disbursement the
34 allocations made in accordance with this paragraph.
-89- LRB9100762PTpk
1 (o) Failure to adopt a budget ordinance or otherwise to
2 comply with Section 4.01 of this Act or to adopt a Five-year
3 Program or otherwise to comply with paragraph (b) of Section
4 2.01 of this Act shall not affect the validity of any tax
5 imposed by the Authority otherwise in conformity with law.
6 (p) At no time shall a public transportation tax or
7 motor vehicle parking tax authorized under paragraphs (b),
8 (c) and (d) of this Section be in effect at the same time as
9 any retailers' occupation, use or service occupation tax
10 authorized under paragraphs (e), (f) and (g) of this Section
11 is in effect.
12 Any taxes imposed under the authority provided in
13 paragraphs (b), (c) and (d) shall remain in effect only until
14 the time as any tax authorized by paragraphs (e), (f) or (g)
15 of this Section are imposed and becomes effective. Once any
16 tax authorized by paragraphs (e), (f) or (g) is imposed the
17 Board may not reimpose taxes as authorized in paragraphs (b),
18 (c) and (d) of the Section unless any tax authorized by
19 paragraphs (e), (f) or (g) of this Section becomes
20 ineffective by means other than an ordinance of the Board.
21 (q) Any existing rights, remedies and obligations
22 (including enforcement by the Regional Transportation
23 Authority) arising under any tax imposed under paragraphs
24 (b), (c) or (d) of this Section shall not be affected by the
25 imposition of a tax under paragraphs (e), (f) or (g) of this
26 Section.
27 (Source: P.A. 86-928; 86-1475; 86-1481; 87-205; 87-435;
28 87-876; 87-895.)
29 Section 50. The Water Commission Act of 1985 is amended
30 by changing Section 4 as follows:
31 (70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
32 Sec. 4. (a) The board of commissioners of any county
-90- LRB9100762PTpk
1 water commission may, by ordinance, impose throughout the
2 territory of the commission any or all of the taxes provided
3 in this Section for its corporate purposes. However, no
4 county water commission may impose any such tax unless the
5 commission certifies the proposition of imposing the tax to
6 the proper election officials, who shall submit the
7 proposition to the voters residing in the territory at an
8 election in accordance with the general election law, and the
9 proposition has been approved by a majority of those voting
10 on the proposition.
11 The proposition shall be in the form provided in Section
12 5 or shall be substantially in the following form:
13 -------------------------------------------------------------
14 Shall the (insert corporate
15 name of county water commission) YES
16 impose (state type of tax or ------------------------
17 taxes to be imposed) at the NO
18 rate of 1/4%?
19 -------------------------------------------------------------
20 Taxes imposed under this Section and civil penalties
21 imposed incident thereto shall be collected and enforced by
22 the State Department of Revenue. The Department shall have
23 the power to administer and enforce the taxes and to
24 determine all rights for refunds for erroneous payments of
25 the taxes.
26 (b) The board of commissioners may impose a County Water
27 Commission Retailers' Occupation Tax upon all persons engaged
28 in the business of selling tangible personal property at
29 retail in the territory of the commission at a rate of 1/4%
30 of the gross receipts from the sales made in the course of
31 such business within the territory. The tax imposed under
32 this paragraph and all civil penalties that may be assessed
33 as an incident thereof shall be collected and enforced by the
34 State Department of Revenue. The Department shall have full
-91- LRB9100762PTpk
1 power to administer and enforce this paragraph; to collect
2 all taxes and penalties due hereunder; to dispose of taxes
3 and penalties so collected in the manner hereinafter
4 provided; and to determine all rights to credit memoranda
5 arising on account of the erroneous payment of tax or penalty
6 hereunder. In the administration of, and compliance with,
7 this paragraph, the Department and persons who are subject to
8 this paragraph shall have the same rights, remedies,
9 privileges, immunities, powers and duties, and be subject to
10 the same conditions, restrictions, limitations, penalties,
11 exclusions, exemptions and definitions of terms, and employ
12 the same modes of procedure, as are prescribed in Sections 1,
13 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect
14 to all provisions therein other than the State rate of tax
15 except that food for human consumption that is to be consumed
16 off the premises where it is sold (other than alcoholic
17 beverages, soft drinks, and food that has been prepared for
18 immediate consumption) and prescription and nonprescription
19 medicine, drugs, medical appliances and insulin, urine
20 testing materials, syringes, and needles used by diabetics,
21 for human use, shall not be subject to tax hereunder), 2c, 3
22 (except as to the disposition of taxes and penalties
23 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
24 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
25 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
26 Penalty and Interest Act, as fully as if those provisions
27 were set forth herein.
28 Persons subject to any tax imposed under the authority
29 granted in this paragraph may reimburse themselves for their
30 seller's tax liability hereunder by separately stating the
31 tax as an additional charge, which charge may be stated in
32 combination, in a single amount, with State taxes that
33 sellers are required to collect under the Use Tax Act and
34 under subsection (e) of Section 4.03 of the Regional
-92- LRB9100762PTpk
1 Transportation Authority Act, in accordance with such bracket
2 schedules as the Department may prescribe.
3 Whenever the Department determines that a refund should
4 be made under this paragraph to a claimant instead of issuing
5 a credit memorandum, the Department shall notify the State
6 Comptroller, who shall cause the warrant to be drawn for the
7 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 a county water commission tax
10 fund established under paragraph (g) of this Section.
11 For the purpose of determining whether a tax authorized
12 under this paragraph is applicable, a retail sale by a
13 producer of a coal or other mineral, other than coal, mined
14 in Illinois is a sale at retail at the place where the coal
15 or other mineral mined in Illinois is extracted from the
16 earth. This paragraph does not apply to a coal or other
17 mineral when it is delivered or shipped by the seller to the
18 purchaser at a point outside Illinois so that the sale is
19 exempt under the Federal Constitution as a sale in interstate
20 or foreign commerce.
21 If a tax is imposed under this subsection (b) a tax shall
22 also be imposed under subsections (c) and (d) of this
23 Section.
24 Nothing in this paragraph shall be construed to authorize
25 a county water commission to impose a tax upon the privilege
26 of engaging in any business which under the Constitution of
27 the United States may not be made the subject of taxation by
28 this State.
29 (c) If a tax has been imposed under subsection (b), a
30 tax shall also be imposed upon all persons engaged, in the
31 territory of the commission, in the business of making sales
32 of service, who, as an incident to making the sales of
33 service, transfer tangible personal property within the
34 territory. The tax rate shall be 1/4% of the selling price of
-93- LRB9100762PTpk
1 tangible personal property so transferred within the
2 territory. The tax imposed under this paragraph and all
3 civil penalties that may be assessed as an incident thereof
4 shall be collected and enforced by the State Department of
5 Revenue. The Department shall have full power to administer
6 and enforce this paragraph; to collect all taxes and
7 penalties due hereunder; to dispose of taxes and penalties so
8 collected in the manner hereinafter provided; and to
9 determine all rights to credit memoranda arising on account
10 of the erroneous payment of tax or penalty hereunder. In the
11 administration of, and compliance with, this paragraph, the
12 Department and persons who are subject to this paragraph
13 shall have the same rights, remedies, privileges, immunities,
14 powers and duties, and be subject to the same conditions,
15 restrictions, limitations, penalties, exclusions, exemptions
16 and definitions of terms, and employ the same modes of
17 procedure, as are prescribed in Sections 1a-1, 2 (except that
18 the reference to State in the definition of supplier
19 maintaining a place of business in this State shall mean the
20 territory of the commission), 2a, 3 through 3-50 (in respect
21 to all provisions therein other than the State rate of tax
22 except that food for human consumption that is to be consumed
23 off the premises where it is sold (other than alcoholic
24 beverages, soft drinks, and food that has been prepared for
25 immediate consumption) and prescription and nonprescription
26 medicines, drugs, medical appliances and insulin, urine
27 testing materials, syringes, and needles used by diabetics,
28 for human use, shall not be subject to tax hereunder), 4
29 (except that the reference to the State shall be to the
30 territory of the commission), 5, 7, 8 (except that the
31 jurisdiction to which the tax shall be a debt to the extent
32 indicated in that Section 8 shall be the commission), 9
33 (except as to the disposition of taxes and penalties
34 collected and except that the returned merchandise credit for
-94- LRB9100762PTpk
1 this tax may not be taken against any State tax), 10, 11, 12
2 (except the reference therein to Section 2b of the Retailers'
3 Occupation Tax Act), 13 (except that any reference to the
4 State shall mean the territory of the commission), the first
5 paragraph of Section 15, 15.5, 16, 17, 18, 19 and 20 of the
6 Service Occupation Tax Act as fully as if those provisions
7 were set forth herein.
8 Persons subject to any tax imposed under the authority
9 granted in this paragraph may reimburse themselves for their
10 serviceman's tax liability hereunder by separately stating
11 the tax as an additional charge, which charge may be stated
12 in combination, in a single amount, with State tax that
13 servicemen are authorized to collect under the Service Use
14 Tax Act, and any tax for which servicemen may be liable under
15 subsection (f) of Sec. 4.03 of the Regional Transportation
16 Authority Act, in accordance with such bracket schedules as
17 the Department may prescribe.
18 Whenever the Department determines that a refund should
19 be made under this paragraph to a claimant instead of issuing
20 a 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
23 notification from the Department. The refund shall be paid
24 by the State Treasurer out of a county water commission tax
25 fund established under paragraph (g) of this Section.
26 Nothing in this paragraph shall be construed to authorize
27 a county water commission to impose a tax upon the privilege
28 of engaging in any business which under the Constitution of
29 the United States may not be made the subject of taxation by
30 the State.
31 (d) If a tax has been imposed under subsection (b), a
32 tax shall also imposed upon the privilege of using, in the
33 territory of the commission, any item of tangible personal
34 property that is purchased outside the territory at retail
-95- LRB9100762PTpk
1 from a retailer, and that is titled or registered with an
2 agency of this State's government, at a rate of 1/4% of the
3 selling price of the tangible personal property within the
4 territory, as "selling price" is defined in the Use Tax Act.
5 The tax shall be collected from persons whose Illinois
6 address for titling or registration purposes is given as
7 being in the territory. The tax shall be collected by the
8 Department of Revenue for a county water commission. The tax
9 must be paid to the State, or an exemption determination must
10 be obtained from the Department of Revenue, before the title
11 or certificate of registration for the property may be
12 issued. The tax or proof of exemption may be transmitted to
13 the Department by way of the State agency with which, or the
14 State officer with whom, the tangible personal property must
15 be titled or registered if the Department and the State
16 agency or State officer determine that this procedure will
17 expedite the processing of applications for title or
18 registration.
19 The Department shall have full power to administer and
20 enforce this paragraph; to collect all taxes, penalties and
21 interest due hereunder; to dispose of taxes, penalties and
22 interest so collected in the manner hereinafter provided; and
23 to determine all rights to credit memoranda or refunds
24 arising on account of the erroneous payment of tax, penalty
25 or interest hereunder. In the administration of, and
26 compliance with this paragraph, the Department and persons
27 who are subject to this paragraph shall have the same rights,
28 remedies, privileges, immunities, powers and duties, and be
29 subject to the same conditions, restrictions, limitations,
30 penalties, exclusions, exemptions and definitions of terms
31 and employ the same modes of procedure, as are prescribed in
32 Sections 2 (except the definition of "retailer maintaining a
33 place of business in this State"), 3 through 3-80 (except
34 provisions pertaining to the State rate of tax, and except
-96- LRB9100762PTpk
1 provisions concerning collection or refunding of the tax by
2 retailers, and except that 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 that has been
5 prepared for immediate consumption) and prescription and
6 nonprescription medicines, drugs, medical appliances and
7 insulin, urine testing materials, syringes, and needles used
8 by diabetics, for human use, shall not be subject to tax
9 hereunder), 4, 11, 12, 12a, 14, 15, 19 (except the portions
10 pertaining to claims by retailers and except the last
11 paragraph concerning refunds), 20, 21 and 22 of the Use Tax
12 Act and Section 3-7 of the Uniform Penalty and Interest Act
13 that are not inconsistent with this paragraph, as fully as if
14 those provisions were set forth herein.
15 Whenever the Department determines that a refund should
16 be made under this paragraph to a claimant instead of issuing
17 a credit memorandum, the Department shall notify the State
18 Comptroller, who shall cause the order to be drawn for the
19 amount specified, and to the person named, in the
20 notification from the Department. The refund shall be paid
21 by the State Treasurer out of a county water commission tax
22 fund established under paragraph (g) of this Section.
23 (e) A certificate of registration issued by the State
24 Department of Revenue to a retailer under the Retailers'
25 Occupation Tax Act or under the Service Occupation Tax Act
26 shall permit the registrant to engage in a business that is
27 taxed under the tax imposed under paragraphs (b), (c) or (d)
28 of this Section and no additional registration shall be
29 required under the tax. A certificate issued under the Use
30 Tax Act or the Service Use Tax Act shall be applicable with
31 regard to any tax imposed under paragraph (c) of this
32 Section.
33 (f) Any ordinance imposing or discontinuing any tax
34 under this Section shall be adopted and a certified copy
-97- LRB9100762PTpk
1 thereof filed with the Department on or before June 1,
2 whereupon the Department of Revenue shall proceed to
3 administer and enforce this Section on behalf of the county
4 water commission as of September 1 next following the
5 adoption and filing. Beginning January 1, 1992, an ordinance
6 or resolution imposing or discontinuing the tax hereunder
7 shall be adopted and a certified copy thereof filed with the
8 Department on or before the first day of July, whereupon the
9 Department shall proceed to administer and enforce this
10 Section as of the first day of October next following such
11 adoption and filing. Beginning January 1, 1993, an ordinance
12 or resolution imposing or discontinuing the tax hereunder
13 shall be adopted and a certified copy thereof filed with the
14 Department on or before the first day of October, whereupon
15 the Department shall proceed to administer and enforce this
16 Section as of the first day of January next following such
17 adoption and filing.
18 (g) The State Department of Revenue shall, upon
19 collecting any taxes as provided in this Section, pay the
20 taxes over to the State Treasurer as trustee for the
21 commission. The taxes shall be held in a trust fund outside
22 the State Treasury. On or before the 25th day of each
23 calendar month, the State Department of Revenue shall prepare
24 and certify to the Comptroller of the State of Illinois the
25 amount to be paid to the commission, which shall be the then
26 balance in the fund, less any amount determined by the
27 Department to be necessary for the payment of refunds. Within
28 10 days after receipt by the Comptroller of the certification
29 of the amount to be paid to the commission, the Comptroller
30 shall cause an order to be drawn for the payment for the
31 amount in accordance with the direction in the certification.
32 (Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
33 Section 90. The State Mandates Act is amended by adding
-98- LRB9100762PTpk
1 Section 8.23 as follows:
2 (30 ILCS 805/8.23 new)
3 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
4 and 8 of this Act, no reimbursement by the State is required
5 for the implementation of any mandate created by this
6 amendatory Act of the 91st General Assembly.
7 Section 99. Effective date. This Act takes effect on
8 January 1, 2000.