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91_SB0144eng
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1 AN ACT in relation to taxation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. Short title. This Act may be cited as the
5 Governmental Tax Reform Validation Act.
6 Section 10. Re-enactment; findings; purpose; validation.
7 (a) The General Assembly finds and declares that:
8 (1) The amendatory provisions of this Act were
9 first enacted by Public Act 85-1135 and all related to
10 taxation.
11 (A) Article I of Public Act 85-1135, effective
12 July 28, 1988, contained provisions stating
13 legislative intent.
14 (B) Article II of Public Act 85-1135,
15 effective January 1, 1990, contained provisions
16 amending or creating Sections 8-11-1, 8-11-1.1,
17 8-11-1.2, 8-11-1.3, 8-11-1.4, 8-11-5, 8-11-6,
18 8-11-6a, 8-11-16, and 11-74.4-8a of the Illinois
19 Municipal Code; Sections 24a-1, 24a-2, 24a-3, 24a-4,
20 and 25.05 of "An Act to revise the law in relation
21 to counties"; Section 4 of the Water Commission Act
22 of 1985; Section 5.01 of the Local Mass Transit
23 District Act; Sections 4.01, 4.03, 4.04, and 4.09 of
24 the Regional Transportation Authority Act; Sections
25 3, 9, and 10b of the Use Tax Act; Sections 2, 3, 3d,
26 7a, 9, 10, 10b, and 15 of the Service Use Tax Act;
27 Sections 2, 3, 9, 13, 15, and 20.1 of the Service
28 Occupation Tax Act; Sections 2, 3, 5k, and 6d of the
29 Retailers' Occupation Tax Act; and Sections 5.240,
30 5.241, 6z-16, and 6z-17 of the State Finance Act.
31 Article II of Public Act 85-1135, effective January
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1 1, 1990, also contained provisions repealing
2 Sections 25.05a, 25.05-2, 25.05-2a, 25.05-3,
3 25.05-3a, 25.05-10, 25.05-10a, and 25.05-10.1 of "An
4 Act to revise the law in relation to counties" and
5 Sections 10 and 14 of the Service Occupation Tax
6 Act.
7 (C) Article III of Public Act 85-1135,
8 effective September 1, 1988, contained provisions
9 further amending Sections 3 and 9 of the Use Tax
10 Act; Sections 2, 3, and 9 of the Service Use Tax
11 Act; Sections 2, 3, and 9 of the Service Occupation
12 Tax Act; and Sections 2 and 3 of the Retailers'
13 Occupation Tax Act; and amending Section 2 of the
14 State Revenue Sharing Act.
15 (D) Article IV of Public Act 85-1135,
16 effective July 28, 1988, contained provisions
17 amending Section 6z-9 of the State Finance Act and
18 creating Section .01 of the State Revenue Sharing
19 Act.
20 (E) Article V of Public Act 85-1135, effective
21 July 28, 1988, contained provisions precluding any
22 effect on a pre-existing right, remedy, or liability
23 and authorizing enactment of home rule municipality
24 ordinances.
25 (2) Public Act 85-1135 also contained provisions
26 relating to State bonds and creating the Water Pollution
27 Control Revolving Fund loan program.
28 (3) On August 26, 1998, the Cook County Circuit
29 Court entered an order in the case of Oak Park Arms
30 Associates v. Whitley (No. 92 L 51045), in which it found
31 that Public Act 85-1135 violates the single subject
32 clause of the Illinois Constitution (Article IV, Section
33 8(d)). As of the time this Act was prepared, the order
34 declaring P.A. 85-1135 invalid has been vacated but the
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1 case is subject to appeal.
2 (4) The tax provisions of Public Act 85-1135 affect
3 many areas of vital concern to the people of this State.
4 The disruption of the tax reform contained in those
5 provisions could constitute a grave threat to the
6 continued health, safety, and welfare of the people of
7 this State.
8 (b) It is the purpose of this Act to prevent or minimize
9 any problems relating to taxation that may result from
10 challenges to the constitutional validity of Public Act
11 85-1135, by (1) re-enacting provisions from Public Act
12 85-1135 and (2) validating all actions taken in reliance on
13 those provisions from Public Act 85-1135.
14 (c) Because Public Act 86-962, effective January 1,
15 1990, renumbered Sections 24a-1, 24a-2, 24a-3, 24a-4, and
16 25.05 of the Counties Code, this Act contains those
17 provisions as renumbered under Sections 5-1006, 5-1007,
18 5-1008, 5-1009, and 5-1024 of the Counties Code. Because
19 Public Act 86-1475, effective January 10, 1991, resectioned
20 Section 3 of the Use Tax Act, Section 3 of the Service Use
21 Tax Act, Section 3 of the Service Occupation Tax Act, and
22 Section 2 of the Retailers' Occupation Tax Act, this Act
23 contains those provisions as resectioned under Sections 3,
24 3-5, 3-10, 3-15, 3-20, 3-25, 3-30, 3-35, 3-40, 3-45, 3-50,
25 3-55, 3-60, 3-65, 3-70, 3-75, and 3-80 of the Use Tax Act;
26 Sections 3, 3-5, 3-10, 3-15, 3-20, 3-25, 3-30, 3-35, 3-40,
27 3-45, 3-50, 3-55, 3-60, and 3-65 of the Service Use Tax Act;
28 Sections 3, 3-5, 3-10, 3-15, 3-20, 3-25, 3-30, 3-35, 3-40,
29 3-45, and 3-50 of the Service Occupation Tax Act; and
30 Sections 2, 2-5, 2-10, 2-15, 2-20, 2-25, 2-30, 2-35, 2-40,
31 2-45, 2-50, 2-55, 2-60, 2-65 of the Retailers' Occupation Tax
32 Act. Because Public Act 85-1440, effective February 1, 1989,
33 renumbered Section 6z-16 of the State Finance Act and Section
34 .01 of the State Revenue Sharing Act, this Act contains those
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1 provisions as renumbered under Section 6z-18 of the State
2 Finance Act and Section 0.1 of the State Revenue Sharing Act.
3 Sections 10b of the Use Tax Act, 10b of the Service Use Tax
4 Act, 20.1 of the Service Occupation Tax Act, and 6d of the
5 Retailers' Occupation Tax Act have been omitted from this Act
6 because they were repealed by Public Act 87-1258, effective
7 January 7, 1993.
8 (d) This Act re-enacts Section 1 of Article I of Public
9 Act 85-1135; Sections 8-11-1, 8-11-1.1, 8-11-1.2, 8-11-1.3,
10 8-11-1.4, 8-11-5, 8-11-6, 8-11-6a, 8-11-16, and 11-74.4-8a of
11 the Illinois Municipal Code; Sections 5-1006, 5-1007, 5-1008,
12 5-1009, and 5-1024 of the Counties Code; Section 4 of the
13 Water Commission Act of 1985; Section 5.01 of the Local Mass
14 Transit District Act; Sections 4.01, 4.03, 4.04, and 4.09 of
15 the Regional Transportation Authority Act; Sections 3, 3-5,
16 3-10, 3-15, 3-20, 3-25, 3-30, 3-35, 3-40, 3-45, 3-50, 3-55,
17 3-60, 3-65, 3-70, 3-75, 3-80, 9, and 10b of the Use Tax Act;
18 Sections 2, 3, 3-5, 3-10, 3-15, 3-20, 3-25, 3-30, 3-35, 3-40,
19 3-45, 3-50, 3-55, 3-60, 3-65, 3d, 7a, 9, 10, 10b, and 15 of
20 the Service Use Tax Act; Sections 2, 3, 3-5, 3-10, 3-15,
21 3-20, 3-25, 3-30, 3-35, 3-40, 3-45, 3-50, 9, 13, 15, and 20.1
22 of the Service Occupation Tax Act; Sections 2, 2-5, 2-10,
23 2-15, 2-20, 2-25, 2-30, 2-35, 2-40, 2-45, 2-50, 2-55, 2-60,
24 2-65, 3, 5k, and 6d of the Retailers' Occupation Tax Act;
25 Sections 5.240, 5.241, 6z-9, 6z-17, and 6z-18 of the State
26 Finance Act; Sections 0.1 and 2 of the State Revenue Sharing
27 Act; and Sections 1 and 2 of Article V of Public Act 85-1135
28 as they have been amended. It also re-repeals Sections
29 25.05a, 25.05-2, 25.05-2a, 25.05-3, 25.05-3a, 25.05-10,
30 25.05-10a, and 25.05-10.1 of "An Act to revise the law in
31 relation to counties" and Sections 10 and 14 of the Service
32 Occupation Tax Act. This re-enactment and re-repeal is
33 intended to remove any questions as to the validity or
34 content of those Sections; it is not intended to supersede
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1 any other Public Act that amends the text of a Section as
2 set forth in this Act. The re-enacted material in this Act
3 is shown as existing text (i.e., without underscoring)
4 because, as of the time this Act was prepared, the order
5 declaring P.A. 85-1135 invalid has been vacated.
6 (e) In Sections 100 and 900 of this Act, references to
7 "this amendatory Act of 1988" mean Public Act 85-1135, as
8 re-enacted by this Act.
9 (f) The re-enactment or re-repeal of Sections of Public
10 Act 85-1135 by this Act is not intended, and shall not be
11 construed, to imply that Public Act 85-1135 is invalid or to
12 limit or impair any legal argument (1) upholding the validity
13 of Public Act 85-1135 or (2) concerning whether the
14 provisions of Public Act 85-1135 were substantially
15 re-enacted by other Public Acts.
16 (g) All otherwise lawful actions taken in reasonable
17 reliance on or pursuant to the Sections re-enacted by this
18 Act, as set forth in Public Act 85-1135 or subsequently
19 amended, by any officer, employee, agency, or unit of State
20 or local government or by any other person or entity, are
21 hereby validated.
22 With respect to actions taken in relation to matters
23 arising under the Sections re-enacted by this Act, as set
24 forth in Public Act 85-1135 or subsequently amended, a person
25 is rebuttably presumed to have acted in reasonable reliance
26 on and pursuant to the provisions of Public Act 85-1135, as
27 those provisions had been amended at the time the action was
28 taken.
29 (h) With respect to its administration of matters
30 arising under the Sections re-enacted by this Act, the
31 Department of Revenue shall continue to apply the provisions
32 of Public Act 85-1135, as those provisions had been amended
33 at the relevant time.
34 (i) This Act applies, without limitation, to proceedings
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1 pending on or after the effective date of this Act.
2 Section 100. Section 1 of Article 1 of Public Act
3 85-1135 (which is incorrectly shown as Section 12 in the Laws
4 of Illinois) is re-enacted as follows:
5 (P.A. 85-1135, Art. I, Sec. 1)
6 Sec. 1. It is the intent of the 85th General Assembly
7 that:
8 (a) the abolition of the authority of municipalities and
9 counties to impose occupation and use taxes, and the
10 corresponding concurrent increase of the state rate of such
11 taxes with a corresponding distribution to such
12 municipalities and counties pursuant to this amendatory Act
13 of 1988, shall remain in full force and effect on a permanent
14 basis;
15 (b) there shall be no reduction or redistribution as to
16 proportional amount of such corresponding distribution
17 received by such municipalities and counties except as
18 expressly provided in this amendatory Act of 1988;
19 (c) there shall be no reduction of the rate or base of
20 such taxes except as expressly provided in this amendatory
21 Act of 1988;
22 (d) there shall be no limitation on the use of monies
23 received by such municipalities and counties except as
24 expressly provided in this amendatory Act of 1988;
25 (e) the distribution of occupation tax revenues to
26 municipalities and counties shall remain on the basis of
27 point of sale;
28 (f) tax revenues collected pursuant to the State use tax
29 Acts on interstate transactions involving transfer of
30 tangible personal property shall be distributed in accordance
31 with the formula established by this amendatory Act of 1988
32 for State use taxes; and
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1 (g) repeal of the statutory authority of municipalities
2 and counties to impose local retailers' occupation taxes, use
3 taxes, and service occupation taxes shall not be so construed
4 as to impair the provisions of any development,
5 redevelopment, annexation, preannexation or other lawful
6 agreement which describes or refers to receipts from any of
7 such taxes, but, rather, any such description or reference to
8 such taxes shall be given effect as if reference were made in
9 such agreement to the replacement revenue for such abolished
10 taxes received from the Local Government Tax Fund, County and
11 Mass Transit Tax Fund or Local Government Distributive Fund,
12 as the case may be.
13 Section 105. The State Finance Act is amended by
14 re-enacting Sections 5.240, 5.241, 6z-9, 6z-17, and 6z-18 as
15 follows:
16 (30 ILCS 105/5.240) (from Ch. 127, par. 141.240)
17 Sec. 5.240. The Local Government Tax Fund.
18 (Source: P.A. 85-1135.)
19 (30 ILCS 105/5.241) (from Ch. 127, par. 141.241)
20 Sec. 5.241. The County and Mass Transit District Fund.
21 (Source: P.A. 85-1135.)
22 (30 ILCS 105/6z-9) (from Ch. 127, par. 142z-9)
23 Sec. 6z-9. (a) The Build Illinois Fund is created in the
24 State Treasury. All tax revenues and other moneys from
25 whatever source which by law are required to be deposited in
26 the Build Illinois Fund shall be paid into the Build Illinois
27 Fund upon their collection, payment or other receipt as
28 provided by law, including the pledge set forth in Section 12
29 of the Build Illinois Bond Act. All tax revenues and other
30 moneys paid into the Build Illinois Fund shall be promptly
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1 invested by the State Treasurer in accordance with law, and
2 all interest or other earnings accruing or received thereon
3 shall be credited to and paid into the Build Illinois Fund.
4 No tax revenues or other moneys, interest or earnings paid
5 into the Build Illinois Fund shall be transferred or
6 allocated by the Comptroller or Treasurer to any other fund,
7 nor shall the Governor authorize any such transfer or
8 allocation, nor shall any tax revenues or other moneys,
9 interest or earnings paid into the Build Illinois Fund be
10 used, temporarily or otherwise, for interfund borrowing, or
11 be otherwise used or appropriated, except as expressly
12 authorized and provided in Section 8.25 of this Act for the
13 sole purposes and subject to the priorities, limitations and
14 conditions prescribed therein.
15 (b) The tax revenues and other moneys shall be paid into
16 the Build Illinois Fund pursuant to Section 6Z-17 of this
17 Act, Section 28 of the "Illinois Horse Racing Act of 1975",
18 as amended, Section 9 of the "Use Tax Act", as amended,
19 Section 9 of the "Service Use Tax Act", as amended, Section 9
20 of the "Service Occupation Tax Act", as amended, Section 3 of
21 the "Retailers' Occupation Tax Act", as amended, Section 4.05
22 of the "Chicago World's Fair - 1992 Authority Act", as
23 amended, and Sections 3 and 6 of "The Hotel Operators'
24 Occupation Tax Act", as amended.
25 (Source: P.A. 85-1135.)
26 (30 ILCS 105/6z-17) (from Ch. 127, par. 142z-17)
27 Sec. 6z-17. Of the money paid into the State and Local
28 Sales Tax Reform Fund: (i) subject to appropriation to the
29 Department of Revenue, Municipalities having 1,000,000 or
30 more inhabitants shall receive 20% and may expend such amount
31 to fund and establish a program for developing and
32 coordinating public and private resources targeted to meet
33 the affordable housing needs of low-income and very
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1 low-income households within such municipality, (ii) 10%
2 shall be transferred into the Regional Transportation
3 Authority Occupation and Use Tax Replacement Fund, a special
4 fund in the State treasury which is hereby created, (iii)
5 subject to appropriation to the Department of Transportation,
6 The Metro East Mass Transit District shall receive .6%, (iv)
7 the following amounts, plus any cumulative deficiency in such
8 transfers for prior months, shall be transferred monthly into
9 the Build Illinois Fund and credited to the Build Illinois
10 Bond Account therein:
11 Fiscal Year Amount
12 1990 $2,700,000
13 1991 1,850,000
14 1992 2,750,000
15 1993 2,950,000
16 From Fiscal Year 1994 through Fiscal Year 2025 the
17 transfer shall total $3,150,000 monthly, plus any cumulative
18 deficiency in such transfers for prior months, and (v) the
19 remainder of the money paid into the State and Local Sales
20 Tax Reform Fund shall be transferred into the Local
21 Government Distributive Fund and, except for municipalities
22 with 1,000,000 or more inhabitants which shall receive no
23 portion of such remainder, shall be distributed, subject to
24 appropriation, in the manner provided by Section 2 of "An Act
25 in relation to State revenue sharing with local government
26 entities", approved July 31, 1969, as now or hereafter
27 amended. Municipalities with more than 50,000 inhabitants
28 according to the 1980 U.S. Census and located within the
29 Metro East Mass Transit District receiving funds pursuant to
30 provision (v) of this paragraph may expend such amounts to
31 fund and establish a program for developing and coordinating
32 public and private resources targeted to meet the affordable
33 housing needs of low-income and very low-income households
34 within such municipality.
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1 (Source: P.A. 86-17; 86-44; 86-928; 86-953; 86-1028.)
2 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
3 Sec. 6z-18. A portion of the money paid into the Local
4 Government Tax Fund from sales of food for human consumption
5 which is to be consumed off the premises where it is sold
6 (other than alcoholic beverages, soft drinks and food which
7 has been prepared for immediate consumption) and prescription
8 and nonprescription medicines, drugs, medical appliances and
9 insulin, urine testing materials, syringes and needles used
10 by diabetics, which occurred in municipalities, shall be
11 distributed to each municipality based upon the sales which
12 occurred in that municipality. The remainder shall be
13 distributed to each county based upon the sales which
14 occurred in the unincorporated area of that county.
15 A portion of the money paid into the Local Government Tax
16 Fund from the 6.25% general use tax rate on the selling price
17 of tangible personal property which is purchased outside
18 Illinois at retail from a retailer and which is titled or
19 registered by any agency of this State's government shall be
20 distributed to municipalities as provided in this paragraph.
21 Each municipality shall receive the amount attributable to
22 sales for which Illinois addresses for titling or
23 registration purposes are given as being in such
24 municipality. The remainder of the money paid into the Local
25 Government Tax Fund from such sales shall be distributed to
26 counties. Each county shall receive the amount attributable
27 to sales for which Illinois addresses for titling or
28 registration purposes are given as being located in the
29 unincorporated area of such county.
30 A portion of the money paid into the Local Government Tax
31 Fund from the 6.25% general rate on sales subject to taxation
32 under the Retailers' Occupation Tax Act and the Service
33 Occupation Tax Act, which occurred in municipalities, shall
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1 be distributed to each municipality, based upon the sales
2 which occurred in that municipality. The remainder shall be
3 distributed to each county, based upon the sales which
4 occurred in the unincorporated area of such county.
5 For the purpose of determining allocation to the local
6 government unit, a retail sale by a producer of coal or other
7 mineral mined in Illinois is a sale at retail at the place
8 where the coal or other mineral mined in Illinois is
9 extracted from the earth. This paragraph does not apply to
10 coal or other mineral when it is delivered or shipped by the
11 seller to the purchaser at a point outside Illinois so that
12 the sale is exempt under the United States Constitution as a
13 sale in interstate or foreign commerce.
14 Whenever the Department determines that a refund of money
15 paid into the Local Government Tax Fund should be made to a
16 claimant instead of issuing a credit memorandum, the
17 Department shall notify the State Comptroller, who shall
18 cause the order to be drawn for the amount specified, and to
19 the person named, in such notification from the Department.
20 Such refund shall be paid by the State Treasurer out of the
21 Local Government Tax Fund.
22 On or before the 25th day of each calendar month, the
23 Department shall prepare and certify to the Comptroller the
24 disbursement of stated sums of money to named municipalities
25 and counties, the municipalities and counties to be those
26 entitled to distribution of taxes or penalties paid to the
27 Department during the second preceding calendar month. The
28 amount to be paid to each municipality or county shall be the
29 amount (not including credit memoranda) collected during the
30 second preceding calendar month by the Department and paid
31 into the Local Government Tax Fund, plus an amount the
32 Department determines is necessary to offset any amounts
33 which were erroneously paid to a different taxing body, and
34 not including an amount equal to the amount of refunds made
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1 during the second preceding calendar month by the Department,
2 and not including any amount which the Department determines
3 is necessary to offset any amounts which are payable to a
4 different taxing body but were erroneously paid to the
5 municipality or county. Within 10 days after receipt, by the
6 Comptroller, of the disbursement certification to the
7 municipalities and counties, provided for in this Section to
8 be given to the Comptroller by the Department, the
9 Comptroller shall cause the orders to be drawn for the
10 respective amounts in accordance with the directions
11 contained in such certification.
12 When certifying the amount of monthly disbursement to a
13 municipality or county under this Section, the Department
14 shall increase or decrease that amount by an amount necessary
15 to offset any misallocation of previous disbursements. The
16 offset amount shall be the amount erroneously disbursed
17 within the 6 months preceding the time a misallocation is
18 discovered.
19 The provisions directing the distributions from the
20 special fund in the State Treasury provided for in this
21 Section shall constitute an irrevocable and continuing
22 appropriation of all amounts as provided herein. The State
23 Treasurer and State Comptroller are hereby authorized to make
24 distributions as provided in this Section.
25 In construing any development, redevelopment, annexation,
26 preannexation or other lawful agreement in effect prior to
27 September 1, 1990, which describes or refers to receipts from
28 a county or municipal retailers' occupation tax, use tax or
29 service occupation tax which now cannot be imposed, such
30 description or reference shall be deemed to include the
31 replacement revenue for such abolished taxes, distributed
32 from the Local Government Tax Fund.
33 (Source: P.A. 90-491, eff. 1-1-98.)
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1 Section 110. The State Revenue Sharing Act is amended by
2 re-enacting Sections 0.1 and 2 as follows:
3 (30 ILCS 115/0.1) (from Ch. 85, par. 610)
4 Sec. 0.1. This Act shall be known and may be cited as
5 the State Revenue Sharing Act.
6 (Source: P.A. 85-1440.)
7 (30 ILCS 115/2) (from Ch. 85, par. 612)
8 Sec. 2. Allocation and Disbursement. As soon as may be
9 after the first day of each month, the Department of Revenue
10 shall allocate among the several municipalities and counties
11 of this State the amount available in the Local Government
12 Distributive Fund and in the Income Tax Surcharge Local
13 Government Distributive Fund, determined as provided in
14 Sections 1 and 1a above. Except as provided in Sections 13
15 and 13.1 of this Act, the Department shall then certify such
16 allocations to the State Comptroller, who shall pay over to
17 the several municipalities and counties the respective
18 amounts allocated to them. The amount of such Funds
19 allocable to each such municipality and county shall be in
20 proportion to the number of individual residents of such
21 municipality or county to the total population of the State,
22 determined in each case on the basis of the latest census of
23 the State, municipality or county conducted by the Federal
24 government and certified by the Secretary of State and for
25 annexations to municipalities, the latest Federal, State or
26 municipal census of the annexed area which has been certified
27 by the Department of Revenue. For the purpose of this
28 Section, the number of individual residents of a county shall
29 be reduced by the number of individuals residing therein in
30 municipalities, but the number of individual residents of the
31 State, county and municipality shall reflect the latest
32 census of any of them. The amounts transferred into the Local
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1 Government Distributive Fund pursuant to Section 9 of the Use
2 Tax Act, Section 9 of the Service Use Tax Act, Section 9 of
3 the Service Occupation Tax Act, and Section 3 of the
4 Retailers' Occupation Tax Act, each as now or hereafter
5 amended, pursuant to the amendments of such Sections by
6 Public Act 85-1135, shall be distributed as provided in said
7 Sections.
8 (Source: P.A. 86-18.)
9 Section 115. The Use Tax Act is amended by re-enacting
10 Sections 3, 3-5, 3-10, 3-15, 3-20, 3-25, 3-30, 3-35, 3-40,
11 3-45, 3-50, 3-55, 3-60, 3-65, 3-70, 3-75, 3-80, and 9 as
12 follows:
13 (35 ILCS 105/3) (from Ch. 120, par. 439.3)
14 Sec. 3. Tax imposed. A tax is imposed upon the privilege
15 of using in this State tangible personal property purchased
16 at retail from a retailer, including computer software, and
17 including photographs, negatives, and positives that are the
18 product of photoprocessing, but not including products of
19 photoprocessing produced for use in motion pictures for
20 commercial exhibition.
21 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
22 86-953; 86-1394; 86-1475; 87-876.)
23 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
24 Sec. 3-5. Exemptions. Use of the following tangible
25 personal property is exempt from the tax imposed by this Act:
26 (1) Personal property purchased from a corporation,
27 society, association, foundation, institution, or
28 organization, other than a limited liability company, that is
29 organized and operated as a not-for-profit service enterprise
30 for the benefit of persons 65 years of age or older if the
31 personal property was not purchased by the enterprise for the
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1 purpose of resale by the enterprise.
2 (2) Personal property purchased by a not-for-profit
3 Illinois county fair association for use in conducting,
4 operating, or promoting the county fair.
5 (3) Personal property purchased by a not-for-profit
6 music or dramatic arts organization that establishes, by
7 proof required by the Department by rule, that it has
8 received an exemption under Section 501(c)(3) of the Internal
9 Revenue Code and that is organized and operated for the
10 presentation of live public performances of musical or
11 theatrical works on a regular basis.
12 (4) Personal property purchased by a governmental body,
13 by a corporation, society, association, foundation, or
14 institution organized and operated exclusively for
15 charitable, religious, or educational purposes, or by a
16 not-for-profit corporation, society, association, foundation,
17 institution, or organization that has no compensated officers
18 or employees and that is organized and operated primarily for
19 the recreation of persons 55 years of age or older. A limited
20 liability company may qualify for the exemption under this
21 paragraph only if the limited liability company is organized
22 and operated exclusively for educational purposes. On and
23 after July 1, 1987, however, no entity otherwise eligible for
24 this exemption shall make tax-free purchases unless it has an
25 active exemption identification number issued by the
26 Department.
27 (5) A passenger car that is a replacement vehicle to the
28 extent that the purchase price of the car is subject to the
29 Replacement Vehicle Tax.
30 (6) Graphic arts machinery and equipment, including
31 repair and replacement parts, both new and used, and
32 including that manufactured on special order, certified by
33 the purchaser to be used primarily for graphic arts
34 production, and including machinery and equipment purchased
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1 for lease.
2 (7) Farm chemicals.
3 (8) 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 (9) Personal property purchased from a teacher-sponsored
8 student organization affiliated with an elementary or
9 secondary school located in Illinois.
10 (10) A motor vehicle of the first division, a motor
11 vehicle of the second division that is a self-contained motor
12 vehicle designed or permanently converted to provide living
13 quarters for recreational, camping, or travel use, with
14 direct walk through to the living quarters from the driver's
15 seat, or a motor vehicle of the second division that is of
16 the van configuration designed for the transportation of not
17 less than 7 nor more than 16 passengers, as defined in
18 Section 1-146 of the Illinois Vehicle Code, that is used for
19 automobile renting, as defined in the Automobile Renting
20 Occupation and Use Tax Act.
21 (11) Farm machinery and equipment, both new and used,
22 including that manufactured on special order, certified by
23 the purchaser to be used primarily for production agriculture
24 or State or federal agricultural programs, including
25 individual replacement parts for the machinery and equipment,
26 including machinery and equipment purchased for lease, and
27 including implements of husbandry defined in Section 1-130 of
28 the Illinois Vehicle Code, farm machinery and agricultural
29 chemical and fertilizer spreaders, and nurse wagons required
30 to be registered under Section 3-809 of the Illinois Vehicle
31 Code, but excluding other motor vehicles required to be
32 registered under the Illinois Vehicle Code. Horticultural
33 polyhouses or hoop houses used for propagating, growing, or
34 overwintering plants shall be considered farm machinery and
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1 equipment under this item (11). Agricultural chemical tender
2 tanks and dry boxes shall include units sold separately from
3 a motor vehicle required to be licensed and units sold
4 mounted on a motor vehicle required to be licensed if the
5 selling price of the tender is separately stated.
6 Farm machinery and equipment shall include precision
7 farming equipment that is installed or purchased to be
8 installed on farm machinery and equipment including, but not
9 limited to, tractors, harvesters, sprayers, planters,
10 seeders, or spreaders. Precision farming equipment includes,
11 but is not limited to, soil testing sensors, computers,
12 monitors, software, global positioning and mapping systems,
13 and other such equipment.
14 Farm machinery and equipment also includes computers,
15 sensors, software, and related equipment used primarily in
16 the computer-assisted operation of production agriculture
17 facilities, equipment, and activities such as, but not
18 limited to, the collection, monitoring, and correlation of
19 animal and crop data for the purpose of formulating animal
20 diets and agricultural chemicals. This item (11) is exempt
21 from the provisions of Section 3-90.
22 (12) Fuel and petroleum products sold to or used by an
23 air common carrier, certified by the carrier to be used for
24 consumption, shipment, or storage in the conduct of its
25 business as an air common carrier, for a flight destined for
26 or returning from a location or locations outside the United
27 States without regard to previous or subsequent domestic
28 stopovers.
29 (13) Proceeds of mandatory service charges separately
30 stated on customers' bills for the purchase and consumption
31 of food and beverages purchased at retail from a retailer, to
32 the extent that the proceeds of the service charge are in
33 fact turned over as tips or as a substitute for tips to the
34 employees who participate directly in preparing, serving,
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1 hosting or cleaning up the food or beverage function with
2 respect to which the service charge is imposed.
3 (14) Oil field exploration, drilling, and production
4 equipment, including (i) rigs and parts of rigs, rotary rigs,
5 cable tool rigs, and workover rigs, (ii) pipe and tubular
6 goods, including casing and drill strings, (iii) pumps and
7 pump-jack units, (iv) storage tanks and flow lines, (v) any
8 individual replacement part for oil field exploration,
9 drilling, and production equipment, and (vi) machinery and
10 equipment purchased for lease; but excluding motor vehicles
11 required to be registered under the Illinois Vehicle Code.
12 (15) Photoprocessing machinery and equipment, including
13 repair and replacement parts, both new and used, including
14 that manufactured on special order, certified by the
15 purchaser to be used primarily for photoprocessing, and
16 including photoprocessing machinery and equipment purchased
17 for lease.
18 (16) Coal exploration, mining, offhighway hauling,
19 processing, maintenance, and reclamation equipment, including
20 replacement parts and equipment, and including equipment
21 purchased for lease, but excluding motor vehicles required to
22 be registered under the Illinois Vehicle Code.
23 (17) Distillation machinery and equipment, sold as a
24 unit or kit, assembled or installed by the retailer,
25 certified by the user to be used only for the production of
26 ethyl alcohol that will be used for consumption as motor fuel
27 or as a component of motor fuel for the personal use of the
28 user, and not subject to sale or resale.
29 (18) Manufacturing and assembling machinery and
30 equipment used primarily in the process of manufacturing or
31 assembling tangible personal property for wholesale or retail
32 sale or lease, whether that sale or lease is made directly by
33 the manufacturer or by some other person, whether the
34 materials used in the process are owned by the manufacturer
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1 or some other person, or whether that sale or lease is made
2 apart from or as an incident to the seller's engaging in the
3 service occupation of producing machines, tools, dies, jigs,
4 patterns, gauges, or other similar items of no commercial
5 value on special order for a particular purchaser.
6 (19) Personal property delivered to a purchaser or
7 purchaser's donee inside Illinois when the purchase order for
8 that personal property was received by a florist located
9 outside Illinois who has a florist located inside Illinois
10 deliver the personal property.
11 (20) Semen used for artificial insemination of livestock
12 for direct agricultural production.
13 (21) Horses, or interests in horses, registered with and
14 meeting the requirements of any of the Arabian Horse Club
15 Registry of America, Appaloosa Horse Club, American Quarter
16 Horse Association, United States Trotting Association, or
17 Jockey Club, as appropriate, used for purposes of breeding or
18 racing for prizes.
19 (22) Computers and communications equipment utilized for
20 any hospital purpose and equipment used in the diagnosis,
21 analysis, or treatment of hospital patients purchased by a
22 lessor who leases the equipment, under a lease of one year or
23 longer executed or in effect at the time the lessor would
24 otherwise be subject to the tax imposed by this Act, to a
25 hospital that has been issued an active tax exemption
26 identification number by the Department under Section 1g of
27 the Retailers' Occupation Tax Act. If the equipment is
28 leased in a manner that does not qualify for this exemption
29 or is used in any other non-exempt manner, the lessor shall
30 be liable for the tax imposed under this Act or the Service
31 Use Tax Act, as the case may be, based on the fair market
32 value of the property at the time the non-qualifying use
33 occurs. No lessor shall collect or attempt to collect an
34 amount (however designated) that purports to reimburse that
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1 lessor for the tax imposed by this Act or the Service Use Tax
2 Act, as the case may be, if the tax has not been paid by the
3 lessor. If a lessor improperly collects any such amount from
4 the lessee, the lessee shall have a legal right to claim a
5 refund of that amount from the lessor. If, however, that
6 amount is not refunded to the lessee for any reason, the
7 lessor is liable to pay that amount to the Department.
8 (23) Personal property purchased by a lessor who leases
9 the property, under a lease of one year or longer executed
10 or in effect at the time the lessor would otherwise be
11 subject to the tax imposed by this Act, to a governmental
12 body that has been issued an active sales tax exemption
13 identification number by the Department under Section 1g of
14 the Retailers' Occupation Tax Act. If the property is leased
15 in a manner that does not qualify for this exemption or used
16 in any other non-exempt manner, the lessor shall be liable
17 for the tax imposed under this Act or the Service Use Tax
18 Act, as the case may be, based on the fair market value of
19 the property at the time the non-qualifying use occurs. No
20 lessor shall collect or attempt to collect an amount (however
21 designated) that purports to reimburse that lessor for the
22 tax imposed by this Act or the Service Use Tax Act, as the
23 case may be, if the tax has not been paid by the lessor. If
24 a lessor improperly collects any such amount from the lessee,
25 the lessee shall have a legal right to claim a refund of that
26 amount from the lessor. If, however, that amount is not
27 refunded to the lessee for any reason, the lessor is liable
28 to pay that amount to the Department.
29 (24) Beginning with taxable years ending on or after
30 December 31, 1995 and ending with taxable years ending on or
31 before December 31, 2004, personal property that is donated
32 for disaster relief to be used in a State or federally
33 declared disaster area in Illinois or bordering Illinois by a
34 manufacturer or retailer that is registered in this State to
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1 a corporation, society, association, foundation, or
2 institution that has been issued a sales tax exemption
3 identification number by the Department that assists victims
4 of the disaster who reside within the declared disaster area.
5 (25) Beginning with taxable years ending on or after
6 December 31, 1995 and ending with taxable years ending on or
7 before December 31, 2004, personal property that is used in
8 the performance of infrastructure repairs in this State,
9 including but not limited to municipal roads and streets,
10 access roads, bridges, sidewalks, waste disposal systems,
11 water and sewer line extensions, water distribution and
12 purification facilities, storm water drainage and retention
13 facilities, and sewage treatment facilities, resulting from a
14 State or federally declared disaster in Illinois or bordering
15 Illinois when such repairs are initiated on facilities
16 located in the declared disaster area within 6 months after
17 the disaster.
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 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
23 Sec. 3-10. Rate of tax. Unless otherwise provided in
24 this Section, the tax imposed by this Act is at the rate of
25 6.25% of either the selling price or the fair market value,
26 if any, of the tangible personal property. In all cases
27 where property functionally used or consumed is the same as
28 the property that was purchased at retail, then the tax is
29 imposed on the selling price of the property. In all cases
30 where property functionally used or consumed is a by-product
31 or waste product that has been refined, manufactured, or
32 produced from property purchased at retail, then the tax is
33 imposed on the lower of the fair market value, if any, of the
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1 specific property so used in this State or on the selling
2 price of the property purchased at retail. For purposes of
3 this Section "fair market value" means the price at which
4 property would change hands between a willing buyer and a
5 willing seller, neither being under any compulsion to buy or
6 sell and both having reasonable knowledge of the relevant
7 facts. The fair market value shall be established by Illinois
8 sales by the taxpayer of the same property as that
9 functionally used or consumed, or if there are no such sales
10 by the taxpayer, then comparable sales or purchases of
11 property of like kind and character in Illinois.
12 With respect to gasohol, the tax imposed by this Act
13 applies to 70% of the proceeds of sales made on or after
14 January 1, 1990, and before July 1, 2003, and to 100% of the
15 proceeds of sales made thereafter.
16 With respect to food for human consumption that is to be
17 consumed off the premises where it is sold (other than
18 alcoholic beverages, soft drinks, and food that has been
19 prepared for immediate consumption) and prescription and
20 nonprescription medicines, drugs, medical appliances,
21 modifications to a motor vehicle for the purpose of rendering
22 it usable by a disabled person, and insulin, urine testing
23 materials, syringes, and needles used by diabetics, for human
24 use, the tax is imposed at the rate of 1%. For the purposes
25 of this Section, the term "soft drinks" means any complete,
26 finished, ready-to-use, non-alcoholic drink, whether
27 carbonated or not, including but not limited to soda water,
28 cola, fruit juice, vegetable juice, carbonated water, and all
29 other preparations commonly known as soft drinks of whatever
30 kind or description that are contained in any closed or
31 sealed bottle, can, carton, or container, regardless of size.
32 "Soft drinks" does not include coffee, tea, non-carbonated
33 water, infant formula, milk or milk products as defined in
34 the Grade A Pasteurized Milk and Milk Products Act, or drinks
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1 containing 50% or more natural fruit or vegetable juice.
2 Notwithstanding any other provisions of this Act, "food
3 for human consumption that is to be consumed off the premises
4 where it is sold" includes all food sold through a vending
5 machine, except soft drinks and food products that are
6 dispensed hot from a vending machine, regardless of the
7 location of the vending machine.
8 If the property that is purchased at retail from a
9 retailer is acquired outside Illinois and used outside
10 Illinois before being brought to Illinois for use here and is
11 taxable under this Act, the "selling price" on which the tax
12 is computed shall be reduced by an amount that represents a
13 reasonable allowance for depreciation for the period of prior
14 out-of-state use.
15 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
16 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
17 6-30-98; 90-606, eff. 6-30-98.)
18 (35 ILCS 105/3-15) (from Ch. 120, par. 439.3-15)
19 Sec. 3-15. Photoprocessing. For purposes of the tax
20 imposed on photographs, negatives, and positives by this Act,
21 "photoprocessing" includes, but is not limited to, developing
22 films, positives, negatives, and transparencies, and tinting,
23 coloring, making, and enlarging prints. Photoprocessing does
24 not include color separation, typesetting, and platemaking by
25 photographic means in the graphic arts industry and does not
26 include any procedure, process, or activity connected with
27 the creation of the images on the film from which the
28 negatives, positives, or photographs are derived. The charge
29 for in-house photoprocessing may not be less than the
30 photoprocessor's cost price of materials. In transactions in
31 which products of photoprocessing are sold in conjunction
32 with other services, if a charge for the photoprocessing
33 component is not separately stated, tax is imposed on 50% of
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1 the entire selling price unless the sale is made by a
2 professional photographer, in which case tax is imposed on
3 10% of the entire selling price.
4 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
5 86-953; 86-1394; 86-1475.)
6 (35 ILCS 105/3-20) (from Ch. 120, par. 439.3-20)
7 Sec. 3-20. Bullion. For purposes of the exemption
8 pertaining to bullion, "bullion" means gold, silver, or
9 platinum in a bulk state with a purity of not less than 980
10 parts per 1,000.
11 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
12 86-953; 86-1394; 86-1475.)
13 (35 ILCS 105/3-25) (from Ch. 120, par. 439.3-25)
14 Sec. 3-25. Computer software. For the purposes of this
15 Act, "computer software" means a set of statements, data, or
16 instructions to be used directly or indirectly in a computer
17 in order to bring about a certain result in any form in which
18 those statements, data, or instructions may be embodied,
19 transmitted, or fixed, by any method now known or hereafter
20 developed, regardless of whether the statements, data, or
21 instructions are capable of being perceived by or
22 communicated to humans, and includes prewritten or canned
23 software that is held for repeated sale or lease, and all
24 associated documentation and materials, if any, whether
25 contained on magnetic tapes, discs, cards, or other devices
26 or media, but does not include software that is adapted to
27 specific individualized requirements of a purchaser,
28 custom-made and modified software designed for a particular
29 or limited use by a purchaser, or software used to operate
30 exempt machinery and equipment used in the process of
31 manufacturing or assembling tangible personal property for
32 wholesale or retail sale or lease.
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1 For the purposes of this Act, computer software shall be
2 considered to be tangible personal property.
3 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
4 86-953; 86-1394; 86-1475.)
5 (35 ILCS 105/3-30) (from Ch. 120, par. 439.3-30)
6 Sec. 3-30. Graphic arts production. For the purposes of
7 this Act, "graphic arts production" means printing by one or
8 more of the common processes or graphic arts production
9 services as those processes and services are defined in Major
10 Group 27 of the U. S. Standard Industrial Classification
11 Manual.
12 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
13 86-953; 86-1394; 86-1475.)
14 (35 ILCS 105/3-35) (from Ch. 120, par. 439.3-35)
15 Sec. 3-35. Production agriculture. For purposes of this
16 Act, "production agriculture" means the raising of or the
17 propagation of livestock; crops for sale for human
18 consumption; crops for livestock consumption; and production
19 seed stock grown for the propagation of feed grains and the
20 husbandry of animals or for the purpose of providing a food
21 product, including the husbandry of blood stock as a main
22 source of providing a food product. "Production agriculture"
23 also means animal husbandry, floriculture, aquaculture,
24 horticulture, and viticulture.
25 (Source: P.A. 89-220, eff. 1-1-96.)
26 (35 ILCS 105/3-40) (from Ch. 120, par. 439.3-40)
27 Sec. 3-40. Gasohol. As used in this Act, "gasohol"
28 means motor fuel that is no more than 90% gasoline and at
29 least 10% denatured ethanol that contains no more than 1.25%
30 water by weight. Any person who knowingly sells or represents
31 as gasohol any fuel that does not qualify as gasohol under
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1 this Act is guilty of a business offense and shall be fined
2 not more than $100 for each day that the sale or
3 representation takes place after notification from the
4 Department of Agriculture that the fuel in question does not
5 qualify as gasohol.
6 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
7 86-953; 86-1394; 86-1475.)
8 (35 ILCS 105/3-45) (from Ch. 120, par. 439.3-45)
9 Sec. 3-45. Collection. The tax imposed by this Act
10 shall be collected from the purchaser by a retailer
11 maintaining a place of business in this State or a retailer
12 authorized by the Department under Section 6 of this Act, and
13 shall be remitted to the Department as provided in Section 9
14 of this Act.
15 The tax imposed by this Act that is not paid to a
16 retailer under this Section shall be paid to the Department
17 directly by any person using the property within this State
18 as provided in Section 10 of this Act.
19 Retailers shall collect the tax from users by adding the
20 tax to the selling price of tangible personal property, when
21 sold for use, in the manner prescribed by the Department.
22 The Department may adopt and promulgate reasonable rules and
23 regulations for the adding of the tax by retailers to selling
24 prices by prescribing bracket systems for the purpose of
25 enabling the retailers to add and collect, as far as
26 practicable, the amount of the tax.
27 If a seller collects use tax measured by receipts that
28 are not subject to use tax, or if a seller, in collecting use
29 tax measured by receipts that are subject to tax under this
30 Act, collects more from the purchaser than the required
31 amount of the use tax on the transaction, the purchaser shall
32 have a legal right to claim a refund of that amount from the
33 seller. If, however, that amount is not refunded to the
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1 purchaser for any reason, the seller is liable to pay that
2 amount to the Department. This paragraph does not apply to
3 an amount collected by the seller as use tax on receipts that
4 are subject to tax under this Act as long as the collection
5 is made in compliance with the tax collection brackets
6 prescribed by the Department in its rules and regulations.
7 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
8 86-953; 86-1394; 86-1475.)
9 (35 ILCS 105/3-50) (from Ch. 120, par. 439.3-50)
10 Sec. 3-50. Manufacturing and assembly exemption. The
11 manufacturing and assembling machinery and equipment
12 exemption includes machinery and equipment that replaces
13 machinery and equipment in an existing manufacturing facility
14 as well as machinery and equipment that are for use in an
15 expanded or new manufacturing facility. The machinery and
16 equipment exemption also includes machinery and equipment
17 used in the general maintenance or repair of exempt machinery
18 and equipment or for in-house manufacture of exempt machinery
19 and equipment. For the purposes of this exemption, terms have
20 the following meanings:
21 (1) "Manufacturing process" means the production of
22 an article of tangible personal property, whether the
23 article is a finished product or an article for use in
24 the process of manufacturing or assembling a different
25 article of tangible personal property, by a procedure
26 commonly regarded as manufacturing, processing,
27 fabricating, or refining that changes some existing
28 material into a material with a different form, use, or
29 name. In relation to a recognized integrated business
30 composed of a series of operations that collectively
31 constitute manufacturing, or individually constitute
32 manufacturing operations, the manufacturing process
33 commences with the first operation or stage of production
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1 in the series and does not end until the completion of
2 the final product in the last operation or stage of
3 production in the series. For purposes of this
4 exemption, photoprocessing is a manufacturing process of
5 tangible personal property for wholesale or retail sale.
6 (2) "Assembling process" means the production of an
7 article of tangible personal property, whether the
8 article is a finished product or an article for use in
9 the process of manufacturing or assembling a different
10 article of tangible personal property, by the combination
11 of existing materials in a manner commonly regarded as
12 assembling that results in an article or material of a
13 different form, use, or name.
14 (3) "Machinery" means major mechanical machines or
15 major components of those machines contributing to a
16 manufacturing or assembling process.
17 (4) "Equipment" includes an independent device or
18 tool separate from machinery but essential to an
19 integrated manufacturing or assembly process; including
20 computers used primarily in operating exempt machinery
21 and equipment in a computer assisted design, computer
22 assisted manufacturing (CAD/CAM) system; any subunit or
23 assembly comprising a component of any machinery or
24 auxiliary, adjunct, or attachment parts of machinery,
25 such as tools, dies, jigs, fixtures, patterns, and molds;
26 and any parts that require periodic replacement in the
27 course of normal operation; but does not include hand
28 tools.
29 The manufacturing and assembling machinery and equipment
30 exemption includes the sale of materials to a purchaser who
31 produces exempted types of machinery, equipment, or tools and
32 who rents or leases that machinery, equipment, or tools to a
33 manufacturer of tangible personal property. This exemption
34 also includes the sale of materials to a purchaser who
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1 manufactures those materials into an exempted type of
2 machinery, equipment, or tools that the purchaser uses
3 himself or herself in the manufacturing of tangible personal
4 property. This exemption includes the sale of exempted types
5 of machinery or equipment to a purchaser who is not the
6 manufacturer, but who rents or leases the use of the property
7 to a manufacturer. The purchaser of the machinery and
8 equipment who has an active resale registration number shall
9 furnish that number to the seller at the time of purchase. A
10 user of the machinery, equipment, or tools without an active
11 resale registration number shall prepare a certificate of
12 exemption for each transaction stating facts establishing the
13 exemption for that transaction, and that certificate shall be
14 available to the Department for inspection or audit. The
15 Department shall prescribe the form of the certificate.
16 Informal rulings, opinions, or letters issued by the
17 Department in response to an inquiry or request for an
18 opinion from any person regarding the coverage and
19 applicability of this exemption to specific devices shall be
20 published, maintained as a public record, and made available
21 for public inspection and copying. If the informal ruling,
22 opinion, or letter contains trade secrets or other
23 confidential information, where possible, the Department
24 shall delete that information before publication. Whenever
25 informal rulings, opinions, or letters contain a policy of
26 general applicability, the Department shall formulate and
27 adopt that policy as a rule in accordance with the Illinois
28 Administrative Procedure Act.
29 (Source: P.A. 88-505; 88-547.)
30 (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
31 Sec. 3-55. Multistate exemption. To prevent actual or
32 likely multistate taxation, the tax imposed by this Act does
33 not apply to the use of tangible personal property in this
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1 State under the following circumstances:
2 (a) The use, in this State, of tangible personal
3 property acquired outside this State by a nonresident
4 individual and brought into this State by the individual for
5 his or her own use while temporarily within this State or
6 while passing through this State.
7 (b) The use, in this State, of tangible personal
8 property by an interstate carrier for hire as rolling stock
9 moving in interstate commerce or by lessors under a lease of
10 one year or longer executed or in effect at the time of
11 purchase of tangible personal property by interstate carriers
12 for-hire for use as rolling stock moving in interstate
13 commerce as long as so used by the interstate carriers
14 for-hire, and equipment operated by a telecommunications
15 provider, licensed as a common carrier by the Federal
16 Communications Commission, which is permanently installed in
17 or affixed to aircraft moving in interstate commerce.
18 (c) The use, in this State, by owners, lessors, or
19 shippers of tangible personal property that is utilized by
20 interstate carriers for hire for use as rolling stock moving
21 in interstate commerce as long as so used by the interstate
22 carriers for hire, and equipment operated by a
23 telecommunications provider, licensed as a common carrier by
24 the Federal Communications Commission, which is permanently
25 installed in or affixed to aircraft moving in interstate
26 commerce.
27 (d) The use, in this State, of tangible personal
28 property that is acquired outside this State and caused to be
29 brought into this State by a person who has already paid a
30 tax in another State in respect to the sale, purchase, or use
31 of that property, to the extent of the amount of the tax
32 properly due and paid in the other State.
33 (e) The temporary storage, in this State, of tangible
34 personal property that is acquired outside this State and
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1 that, after being brought into this State and stored here
2 temporarily, is used solely outside this State or is
3 physically attached to or incorporated into other tangible
4 personal property that is used solely outside this State, or
5 is altered by converting, fabricating, manufacturing,
6 printing, processing, or shaping, and, as altered, is used
7 solely outside this State.
8 (f) The temporary storage in this State of building
9 materials and fixtures that are acquired either in this State
10 or outside this State by an Illinois registered combination
11 retailer and construction contractor, and that the purchaser
12 thereafter uses outside this State by incorporating that
13 property into real estate located outside this State.
14 (g) The use or purchase of tangible personal property by
15 a common carrier by rail or motor that receives the physical
16 possession of the property in Illinois, and that transports
17 the property, or shares with another common carrier in the
18 transportation of the property, out of Illinois on a standard
19 uniform bill of lading showing the seller of the property as
20 the shipper or consignor of the property to a destination
21 outside Illinois, for use outside Illinois.
22 (h) The use, in this State, of a motor vehicle that was
23 sold in this State to a nonresident, even though the motor
24 vehicle is delivered to the nonresident in this State, if the
25 motor vehicle is not to be titled in this State, and if a
26 driveaway decal permit is issued to the motor vehicle as
27 provided in Section 3-603 of the Illinois Vehicle Code or if
28 the nonresident purchaser has vehicle registration plates to
29 transfer to the motor vehicle upon returning to his or her
30 home state. The issuance of the driveaway decal permit or
31 having the out-of-state registration plates to be transferred
32 shall be prima facie evidence that the motor vehicle will not
33 be titled in this State.
34 (Source: P.A. 90-519, eff. 6-1-98; 90-552, eff. 12-12-97.)
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1 (35 ILCS 105/3-60) (from Ch. 120, par. 439.3-60)
2 Sec. 3-60. Rolling stock exemption. The rolling stock
3 exemption applies to rolling stock used by an interstate
4 carrier for hire, even just between points in Illinois, if
5 the rolling stock transports, for hire, persons whose
6 journeys or property whose shipments originate or terminate
7 outside Illinois.
8 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
9 86-953; 86-1394; 86-1475.)
10 (35 ILCS 105/3-65) (from Ch. 120, par. 439.3-65)
11 Sec. 3-65. R.O.T. nontaxability. If the seller of
12 tangible personal property for use would not be taxable under
13 the Retailers' Occupation Tax Act despite all elements of the
14 sale occurring in Illinois, then the tax imposed by this Act
15 does not apply to the use of the tangible personal property
16 in this State.
17 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
18 86-953; 86-1394; 86-1475.)
19 (35 ILCS 105/3-70) (from Ch. 120, par. 439.3-70)
20 Sec. 3-70. Property acquired by nonresident. The tax
21 imposed by this Act does not apply to the use, in this State,
22 of tangible personal property that is acquired outside this
23 State by a nonresident individual who then brings the
24 property to this State for use here and who has used the
25 property outside this State for at least 3 months before
26 bringing the property to this State.
27 Where a business that is not operated in Illinois, but is
28 operated in another State, is moved to Illinois or opens an
29 office, plant, or other business facility in Illinois, that
30 business shall not be taxed on its use, in Illinois, of used
31 tangible personal property, other than items of tangible
32 personal property that must be titled or registered with the
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1 State of Illinois or whose registration with the United
2 States Government must be filed with the State of Illinois,
3 that the business bought outside Illinois and used outside
4 Illinois in the operation of the business for at least 3
5 months before moving the used property to Illinois for use in
6 this State.
7 "Acquired outside this State", whenever used in this Act,
8 in addition to its usual and popular meaning, also means the
9 delivery, outside Illinois, of tangible personal property
10 that is purchased in this State and delivered from a point in
11 this State to a point of delivery outside this State.
12 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
13 86-953; 86-1394; 86-1475; 87-876.)
14 (35 ILCS 105/3-75) (from Ch. 120, par. 439.3-75)
15 Sec. 3-75. Serviceman transfer. Tangible personal
16 property purchased by a serviceman, as defined in Section 2
17 of the Service Occupation Tax Act, is subject to the tax
18 imposed by this Act when purchased for transfer by the
19 serviceman incidental to completion of a maintenance
20 agreement.
21 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
22 86-953; 86-1394; 86-1475.)
23 (35 ILCS 105/3-80) (from Ch. 120, par. 439.3-80)
24 Sec. 3-80. Liability because of amendatory Act.
25 Revisions in Section 3 (now Sections 3 through 3-80) by
26 Public Act 85-1135 do not affect tax liability that arose
27 before January 1, 1990.
28 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
29 86-953; 86-1394; 86-1475.)
30 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
31 Sec. 9. Except as to motor vehicles, watercraft,
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1 aircraft, and trailers that are required to be registered
2 with an agency of this State, each retailer required or
3 authorized to collect the tax imposed by this Act shall pay
4 to the Department the amount of such tax (except as otherwise
5 provided) at the time when he is required to file his return
6 for the period during which such tax was collected, less a
7 discount of 2.1% prior to January 1, 1990, and 1.75% on and
8 after January 1, 1990, or $5 per calendar year, whichever is
9 greater, which is allowed to reimburse the retailer for
10 expenses incurred in collecting the tax, keeping records,
11 preparing and filing returns, remitting the tax and supplying
12 data to the Department on request. In the case of retailers
13 who report and pay the tax on a transaction by transaction
14 basis, as provided in this Section, such discount shall be
15 taken with each such tax remittance instead of when such
16 retailer files his periodic return. A retailer need not
17 remit that part of any tax collected by him to the extent
18 that he is required to remit and does remit the tax imposed
19 by the Retailers' Occupation Tax Act, with respect to the
20 sale of the same property.
21 Where such tangible personal property is sold under a
22 conditional sales contract, or under any other form of sale
23 wherein the payment of the principal sum, or a part thereof,
24 is extended beyond the close of the period for which the
25 return is filed, the retailer, in collecting the tax (except
26 as to motor vehicles, watercraft, aircraft, and trailers that
27 are required to be registered with an agency of this State),
28 may collect for each tax return period, only the tax
29 applicable to that part of the selling price actually
30 received during such tax return period.
31 Except as provided in this Section, on or before the
32 twentieth day of each calendar month, such retailer shall
33 file a return for the preceding calendar month. Such return
34 shall be filed on forms prescribed by the Department and
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1 shall furnish such information as the Department may
2 reasonably require.
3 The Department may require returns to be filed on a
4 quarterly basis. If so required, a return for each calendar
5 quarter shall be filed on or before the twentieth day of the
6 calendar month following the end of such calendar quarter.
7 The taxpayer shall also file a return with the Department for
8 each of the first two months of each calendar quarter, on or
9 before the twentieth day of the following calendar month,
10 stating:
11 1. The name of the seller;
12 2. The address of the principal place of business
13 from which he engages in the business of selling tangible
14 personal property at retail in this State;
15 3. The total amount of taxable receipts received by
16 him during the preceding calendar month from sales of
17 tangible personal property by him during such preceding
18 calendar month, including receipts from charge and time
19 sales, but less all deductions allowed by law;
20 4. The amount of credit provided in Section 2d of
21 this Act;
22 5. The amount of tax due;
23 5-5. The signature of the taxpayer; and
24 6. Such other reasonable information as the
25 Department may require.
26 If a taxpayer fails to sign a return within 30 days after
27 the proper notice and demand for signature by the Department,
28 the return shall be considered valid and any amount shown to
29 be due on the return shall be deemed assessed.
30 Beginning October 1, 1993, a taxpayer who has an average
31 monthly tax liability of $150,000 or more shall make all
32 payments required by rules of the Department by electronic
33 funds transfer. Beginning October 1, 1994, a taxpayer who has
34 an average monthly tax liability of $100,000 or more shall
SB144 Engrossed -36- LRB9101598PTpk
1 make all payments required by rules of the Department by
2 electronic funds transfer. Beginning October 1, 1995, a
3 taxpayer who has an average monthly tax liability of $50,000
4 or more shall make all payments required by rules of the
5 Department by electronic funds transfer. The term "average
6 monthly tax liability" means the sum of the taxpayer's
7 liabilities under this Act, and under all other State and
8 local occupation and use tax laws administered by the
9 Department, for the immediately preceding calendar year
10 divided by 12.
11 Before August 1 of each year beginning in 1993, the
12 Department shall notify all taxpayers required to make
13 payments by electronic funds transfer. All taxpayers required
14 to make payments by electronic funds transfer shall make
15 those payments for a minimum of one year beginning on October
16 1.
17 Any taxpayer not required to make payments by electronic
18 funds transfer may make payments by electronic funds transfer
19 with the permission of the Department.
20 All taxpayers required to make payment by electronic
21 funds transfer and any taxpayers authorized to voluntarily
22 make payments by electronic funds transfer shall make those
23 payments in the manner authorized by the Department.
24 The Department shall adopt such rules as are necessary to
25 effectuate a program of electronic funds transfer and the
26 requirements of this Section.
27 If the taxpayer's average monthly tax liability to the
28 Department under this Act, the Retailers' Occupation Tax Act,
29 the Service Occupation Tax Act, the Service Use Tax Act was
30 $10,000 or more during the preceding 4 complete calendar
31 quarters, he shall file a return with the Department each
32 month by the 20th day of the month next following the month
33 during which such tax liability is incurred and shall make
34 payments to the Department on or before the 7th, 15th, 22nd
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1 and last day of the month during which such liability is
2 incurred. If the month during which such tax liability is
3 incurred began prior to January 1, 1985, each payment shall
4 be in an amount equal to 1/4 of the taxpayer's actual
5 liability for the month or an amount set by the Department
6 not to exceed 1/4 of the average monthly liability of the
7 taxpayer to the Department for the preceding 4 complete
8 calendar quarters (excluding the month of highest liability
9 and the month of lowest liability in such 4 quarter period).
10 If the month during which such tax liability is incurred
11 begins on or after January 1, 1985, and prior to January 1,
12 1987, each payment shall be in an amount equal to 22.5% of
13 the taxpayer's actual liability for the month or 27.5% of the
14 taxpayer's liability for the same calendar month of the
15 preceding year. If the month during which such tax liability
16 is incurred begins on or after January 1, 1987, and prior to
17 January 1, 1988, each payment shall be in an amount equal to
18 22.5% of the taxpayer's actual liability for the month or
19 26.25% of the taxpayer's liability for the same calendar
20 month of the preceding year. If the month during which such
21 tax liability is incurred begins on or after January 1, 1988,
22 and prior to January 1, 1989, or begins on or after January
23 1, 1996, each payment shall be in an amount equal to 22.5% of
24 the taxpayer's actual liability for the month or 25% of the
25 taxpayer's liability for the same calendar month of the
26 preceding year. If the month during which such tax liability
27 is incurred begins on or after January 1, 1989, and prior to
28 January 1, 1996, each payment shall be in an amount equal to
29 22.5% of the taxpayer's actual liability for the month or 25%
30 of the taxpayer's liability for the same calendar month of
31 the preceding year or 100% of the taxpayer's actual liability
32 for the quarter monthly reporting period. The amount of such
33 quarter monthly payments shall be credited against the final
34 tax liability of the taxpayer's return for that month. Once
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1 applicable, the requirement of the making of quarter monthly
2 payments to the Department shall continue until such
3 taxpayer's average monthly liability to the Department during
4 the preceding 4 complete calendar quarters (excluding the
5 month of highest liability and the month of lowest liability)
6 is less than $9,000, or until such taxpayer's average monthly
7 liability to the Department as computed for each calendar
8 quarter of the 4 preceding complete calendar quarter period
9 is less than $10,000. However, if a taxpayer can show the
10 Department that a substantial change in the taxpayer's
11 business has occurred which causes the taxpayer to anticipate
12 that his average monthly tax liability for the reasonably
13 foreseeable future will fall below $10,000, then such
14 taxpayer may petition the Department for change in such
15 taxpayer's reporting status. The Department shall change
16 such taxpayer's reporting status unless it finds that such
17 change is seasonal in nature and not likely to be long term.
18 If any such quarter monthly payment is not paid at the time
19 or in the amount required by this Section, then the taxpayer
20 shall be liable for penalties and interest on the difference
21 between the minimum amount due and the amount of such quarter
22 monthly payment actually and timely paid, except insofar as
23 the taxpayer has previously made payments for that month to
24 the Department in excess of the minimum payments previously
25 due as provided in this Section. The Department shall make
26 reasonable rules and regulations to govern the quarter
27 monthly payment amount and quarter monthly payment dates for
28 taxpayers who file on other than a calendar monthly basis.
29 If any such payment provided for in this Section exceeds
30 the taxpayer's liabilities under this Act, the Retailers'
31 Occupation Tax Act, the Service Occupation Tax Act and the
32 Service Use Tax Act, as shown by an original monthly return,
33 the Department shall issue to the taxpayer a credit
34 memorandum no later than 30 days after the date of payment,
SB144 Engrossed -39- LRB9101598PTpk
1 which memorandum may be submitted by the taxpayer to the
2 Department in payment of tax liability subsequently to be
3 remitted by the taxpayer to the Department or be assigned by
4 the taxpayer to a similar taxpayer under this Act, the
5 Retailers' Occupation Tax Act, the Service Occupation Tax Act
6 or the Service Use Tax Act, in accordance with reasonable
7 rules and regulations to be prescribed by the Department,
8 except that if such excess payment is shown on an original
9 monthly return and is made after December 31, 1986, no credit
10 memorandum shall be issued, unless requested by the taxpayer.
11 If no such request is made, the taxpayer may credit such
12 excess payment against tax liability subsequently to be
13 remitted by the taxpayer to the Department under this Act,
14 the Retailers' Occupation Tax Act, the Service Occupation Tax
15 Act or the Service Use Tax Act, in accordance with reasonable
16 rules and regulations prescribed by the Department. If the
17 Department subsequently determines that all or any part of
18 the credit taken was not actually due to the taxpayer, the
19 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
20 by 2.1% or 1.75% of the difference between the credit taken
21 and that actually due, and the taxpayer shall be liable for
22 penalties and interest on such difference.
23 If the retailer is otherwise required to file a monthly
24 return and if the retailer's average monthly tax liability to
25 the Department does not exceed $200, the Department may
26 authorize his returns to be filed on a quarter annual basis,
27 with the return for January, February, and March of a given
28 year being due by April 20 of such year; with the return for
29 April, May and June of a given year being due by July 20 of
30 such year; with the return for July, August and September of
31 a given year being due by October 20 of such year, and with
32 the return for October, November and December of a given year
33 being due by January 20 of the following year.
34 If the retailer is otherwise required to file a monthly
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1 or quarterly return and if the retailer's average monthly tax
2 liability to the Department does not exceed $50, the
3 Department may authorize his returns to be filed on an annual
4 basis, with the return for a given year being due by January
5 20 of the following year.
6 Such quarter annual and annual returns, as to form and
7 substance, shall be subject to the same requirements as
8 monthly returns.
9 Notwithstanding any other provision in this Act
10 concerning the time within which a retailer may file his
11 return, in the case of any retailer who ceases to engage in a
12 kind of business which makes him responsible for filing
13 returns under this Act, such retailer shall file a final
14 return under this Act with the Department not more than one
15 month after discontinuing such business.
16 In addition, with respect to motor vehicles, watercraft,
17 aircraft, and trailers that are required to be registered
18 with an agency of this State, every retailer selling this
19 kind of tangible personal property shall file, with the
20 Department, upon a form to be prescribed and supplied by the
21 Department, a separate return for each such item of tangible
22 personal property which the retailer sells, except that
23 where, in the same transaction, a retailer of aircraft,
24 watercraft, motor vehicles or trailers transfers more than
25 one aircraft, watercraft, motor vehicle or trailer to another
26 aircraft, watercraft, motor vehicle or trailer retailer for
27 the purpose of resale, that seller for resale may report the
28 transfer of all the aircraft, watercraft, motor vehicles or
29 trailers involved in that transaction to the Department on
30 the same uniform invoice-transaction reporting return form.
31 For purposes of this Section, "watercraft" means a Class 2,
32 Class 3, or Class 4 watercraft as defined in Section 3-2 of
33 the Boat Registration and Safety Act, a personal watercraft,
34 or any boat equipped with an inboard motor.
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1 The transaction reporting return in the case of motor
2 vehicles or trailers that are required to be registered with
3 an agency of this State, shall be the same document as the
4 Uniform Invoice referred to in Section 5-402 of the Illinois
5 Vehicle Code and must show the name and address of the
6 seller; the name and address of the purchaser; the amount of
7 the selling price including the amount allowed by the
8 retailer for traded-in property, if any; the amount allowed
9 by the retailer for the traded-in tangible personal property,
10 if any, to the extent to which Section 2 of this Act allows
11 an exemption for the value of traded-in property; the balance
12 payable after deducting such trade-in allowance from the
13 total selling price; the amount of tax due from the retailer
14 with respect to such transaction; the amount of tax collected
15 from the purchaser by the retailer on such transaction (or
16 satisfactory evidence that such tax is not due in that
17 particular instance, if that is claimed to be the fact); the
18 place and date of the sale; a sufficient identification of
19 the property sold; such other information as is required in
20 Section 5-402 of the Illinois Vehicle Code, and such other
21 information as the Department may reasonably require.
22 The transaction reporting return in the case of
23 watercraft and aircraft must show the name and address of the
24 seller; the name and address of the purchaser; the amount of
25 the selling price including the amount allowed by the
26 retailer for traded-in property, if any; the amount allowed
27 by the retailer for the traded-in tangible personal property,
28 if any, to the extent to which Section 2 of this Act allows
29 an exemption for the value of traded-in property; the balance
30 payable after deducting such trade-in allowance from the
31 total selling price; the amount of tax due from the retailer
32 with respect to such transaction; the amount of tax collected
33 from the purchaser by the retailer on such transaction (or
34 satisfactory evidence that such tax is not due in that
SB144 Engrossed -42- LRB9101598PTpk
1 particular instance, if that is claimed to be the fact); the
2 place and date of the sale, a sufficient identification of
3 the property sold, and such other information as the
4 Department may reasonably require.
5 Such transaction reporting return shall be filed not
6 later than 20 days after the date of delivery of the item
7 that is being sold, but may be filed by the retailer at any
8 time sooner than that if he chooses to do so. The
9 transaction reporting return and tax remittance or proof of
10 exemption from the tax that is imposed by this Act may be
11 transmitted to the Department by way of the State agency with
12 which, or State officer with whom, the tangible personal
13 property must be titled or registered (if titling or
14 registration is required) if the Department and such agency
15 or State officer determine that this procedure will expedite
16 the processing of applications for title or registration.
17 With each such transaction reporting return, the retailer
18 shall remit the proper amount of tax due (or shall submit
19 satisfactory evidence that the sale is not taxable if that is
20 the case), to the Department or its agents, whereupon the
21 Department shall issue, in the purchaser's name, a tax
22 receipt (or a certificate of exemption if the Department is
23 satisfied that the particular sale is tax exempt) which such
24 purchaser may submit to the agency with which, or State
25 officer with whom, he must title or register the tangible
26 personal property that is involved (if titling or
27 registration is required) in support of such purchaser's
28 application for an Illinois certificate or other evidence of
29 title or registration to such tangible personal property.
30 No retailer's failure or refusal to remit tax under this
31 Act precludes a user, who has paid the proper tax to the
32 retailer, from obtaining his certificate of title or other
33 evidence of title or registration (if titling or registration
34 is required) upon satisfying the Department that such user
SB144 Engrossed -43- LRB9101598PTpk
1 has paid the proper tax (if tax is due) to the retailer. The
2 Department shall adopt appropriate rules to carry out the
3 mandate of this paragraph.
4 If the user who would otherwise pay tax to the retailer
5 wants the transaction reporting return filed and the payment
6 of tax or proof of exemption made to the Department before
7 the retailer is willing to take these actions and such user
8 has not paid the tax to the retailer, such user may certify
9 to the fact of such delay by the retailer, and may (upon the
10 Department being satisfied of the truth of such
11 certification) transmit the information required by the
12 transaction reporting return and the remittance for tax or
13 proof of exemption directly to the Department and obtain his
14 tax receipt or exemption determination, in which event the
15 transaction reporting return and tax remittance (if a tax
16 payment was required) shall be credited by the Department to
17 the proper retailer's account with the Department, but
18 without the 2.1% or 1.75% discount provided for in this
19 Section being allowed. When the user pays the tax directly
20 to the Department, he shall pay the tax in the same amount
21 and in the same form in which it would be remitted if the tax
22 had been remitted to the Department by the retailer.
23 Where a retailer collects the tax with respect to the
24 selling price of tangible personal property which he sells
25 and the purchaser thereafter returns such tangible personal
26 property and the retailer refunds the selling price thereof
27 to the purchaser, such retailer shall also refund, to the
28 purchaser, the tax so collected from the purchaser. When
29 filing his return for the period in which he refunds such tax
30 to the purchaser, the retailer may deduct the amount of the
31 tax so refunded by him to the purchaser from any other use
32 tax which such retailer may be required to pay or remit to
33 the Department, as shown by such return, if the amount of the
34 tax to be deducted was previously remitted to the Department
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1 by such retailer. If the retailer has not previously
2 remitted the amount of such tax to the Department, he is
3 entitled to no deduction under this Act upon refunding such
4 tax to the purchaser.
5 Any retailer filing a return under this Section shall
6 also include (for the purpose of paying tax thereon) the
7 total tax covered by such return upon the selling price of
8 tangible personal property purchased by him at retail from a
9 retailer, but as to which the tax imposed by this Act was not
10 collected from the retailer filing such return, and such
11 retailer shall remit the amount of such tax to the Department
12 when filing such return.
13 If experience indicates such action to be practicable,
14 the Department may prescribe and furnish a combination or
15 joint return which will enable retailers, who are required to
16 file returns hereunder and also under the Retailers'
17 Occupation Tax Act, to furnish all the return information
18 required by both Acts on the one form.
19 Where the retailer has more than one business registered
20 with the Department under separate registration under this
21 Act, such retailer may not file each return that is due as a
22 single return covering all such registered businesses, but
23 shall file separate returns for each such registered
24 business.
25 Beginning January 1, 1990, each month the Department
26 shall pay into the State and Local Sales Tax Reform Fund, a
27 special fund in the State Treasury which is hereby created,
28 the net revenue realized for the preceding month from the 1%
29 tax on sales of food for human consumption which is to be
30 consumed off the premises where it is sold (other than
31 alcoholic beverages, soft drinks and food which has been
32 prepared for immediate consumption) and prescription and
33 nonprescription medicines, drugs, medical appliances and
34 insulin, urine testing materials, syringes and needles used
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1 by diabetics.
2 Beginning January 1, 1990, each month the Department
3 shall pay into the County and Mass Transit District Fund 4%
4 of the net revenue realized for the preceding month from the
5 6.25% general rate on the selling price of tangible personal
6 property which is purchased outside Illinois at retail from a
7 retailer and which is titled or registered by an agency of
8 this State's government.
9 Beginning January 1, 1990, each month the Department
10 shall pay into the State and Local Sales Tax Reform Fund, a
11 special fund in the State Treasury, 20% of the net revenue
12 realized for the preceding month from the 6.25% general rate
13 on the selling price of tangible personal property, other
14 than tangible personal property which is purchased outside
15 Illinois at retail from a retailer and which is titled or
16 registered by an agency of this State's government.
17 Beginning January 1, 1990, each month the Department
18 shall pay into the Local Government Tax Fund 16% of the net
19 revenue realized for the preceding month from the 6.25%
20 general rate on the selling price of tangible personal
21 property which is purchased outside Illinois at retail from a
22 retailer and which is titled or registered by an agency of
23 this State's government.
24 Of the remainder of the moneys received by the Department
25 pursuant to this Act, (a) 1.75% thereof shall be paid into
26 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
27 and on and after July 1, 1989, 3.8% thereof shall be paid
28 into the Build Illinois Fund; provided, however, that if in
29 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
30 as the case may be, of the moneys received by the Department
31 and required to be paid into the Build Illinois Fund pursuant
32 to Section 3 of the Retailers' Occupation Tax Act, Section 9
33 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
34 Section 9 of the Service Occupation Tax Act, such Acts being
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1 hereinafter called the "Tax Acts" and such aggregate of 2.2%
2 or 3.8%, as the case may be, of moneys being hereinafter
3 called the "Tax Act Amount", and (2) the amount transferred
4 to the Build Illinois Fund from the State and Local Sales Tax
5 Reform Fund shall be less than the Annual Specified Amount
6 (as defined in Section 3 of the Retailers' Occupation Tax
7 Act), an amount equal to the difference shall be immediately
8 paid into the Build Illinois Fund from other moneys received
9 by the Department pursuant to the Tax Acts; and further
10 provided, that if on the last business day of any month the
11 sum of (1) the Tax Act Amount required to be deposited into
12 the Build Illinois Bond Account in the Build Illinois Fund
13 during such month and (2) the amount transferred during such
14 month to the Build Illinois Fund from the State and Local
15 Sales Tax Reform Fund shall have been less than 1/12 of the
16 Annual Specified Amount, an amount equal to the difference
17 shall be immediately paid into the Build Illinois Fund from
18 other moneys received by the Department pursuant to the Tax
19 Acts; and, further provided, that in no event shall the
20 payments required under the preceding proviso result in
21 aggregate payments into the Build Illinois Fund pursuant to
22 this clause (b) for any fiscal year in excess of the greater
23 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
24 for such fiscal year; and, further provided, that the amounts
25 payable into the Build Illinois Fund under this clause (b)
26 shall be payable only until such time as the aggregate amount
27 on deposit under each trust indenture securing Bonds issued
28 and outstanding pursuant to the Build Illinois Bond Act is
29 sufficient, taking into account any future investment income,
30 to fully provide, in accordance with such indenture, for the
31 defeasance of or the payment of the principal of, premium, if
32 any, and interest on the Bonds secured by such indenture and
33 on any Bonds expected to be issued thereafter and all fees
34 and costs payable with respect thereto, all as certified by
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1 the Director of the Bureau of the Budget. If on the last
2 business day of any month in which Bonds are outstanding
3 pursuant to the Build Illinois Bond Act, the aggregate of the
4 moneys deposited in the Build Illinois Bond Account in the
5 Build Illinois Fund in such month shall be less than the
6 amount required to be transferred in such month from the
7 Build Illinois Bond Account to the Build Illinois Bond
8 Retirement and Interest Fund pursuant to Section 13 of the
9 Build Illinois Bond Act, an amount equal to such deficiency
10 shall be immediately paid from other moneys received by the
11 Department pursuant to the Tax Acts to the Build Illinois
12 Fund; provided, however, that any amounts paid to the Build
13 Illinois Fund in any fiscal year pursuant to this sentence
14 shall be deemed to constitute payments pursuant to clause (b)
15 of the preceding sentence and shall reduce the amount
16 otherwise payable for such fiscal year pursuant to clause (b)
17 of the preceding sentence. The moneys received by the
18 Department pursuant to this Act and required to be deposited
19 into the Build Illinois Fund are subject to the pledge, claim
20 and charge set forth in Section 12 of the Build Illinois Bond
21 Act.
22 Subject to payment of amounts into the Build Illinois
23 Fund as provided in the preceding paragraph or in any
24 amendment thereto hereafter enacted, the following specified
25 monthly installment of the amount requested in the
26 certificate of the Chairman of the Metropolitan Pier and
27 Exposition Authority provided under Section 8.25f of the
28 State Finance Act, but not in excess of the sums designated
29 as "Total Deposit", shall be deposited in the aggregate from
30 collections under Section 9 of the Use Tax Act, Section 9 of
31 the Service Use Tax Act, Section 9 of the Service Occupation
32 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
33 into the McCormick Place Expansion Project Fund in the
34 specified fiscal years.
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1 Fiscal Year Total Deposit
2 1993 $0
3 1994 53,000,000
4 1995 58,000,000
5 1996 61,000,000
6 1997 64,000,000
7 1998 68,000,000
8 1999 71,000,000
9 2000 75,000,000
10 2001 80,000,000
11 2002 84,000,000
12 2003 89,000,000
13 2004 93,000,000
14 2005 97,000,000
15 2006 102,000,000
16 2007 and 106,000,000
17 each fiscal year
18 thereafter that bonds
19 are outstanding under
20 Section 13.2 of the
21 Metropolitan Pier and
22 Exposition Authority
23 Act, but not after fiscal year 2029.
24 Beginning July 20, 1993 and in each month of each fiscal
25 year thereafter, one-eighth of the amount requested in the
26 certificate of the Chairman of the Metropolitan Pier and
27 Exposition Authority for that fiscal year, less the amount
28 deposited into the McCormick Place Expansion Project Fund by
29 the State Treasurer in the respective month under subsection
30 (g) of Section 13 of the Metropolitan Pier and Exposition
31 Authority Act, plus cumulative deficiencies in the deposits
32 required under this Section for previous months and years,
33 shall be deposited into the McCormick Place Expansion Project
34 Fund, until the full amount requested for the fiscal year,
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1 but not in excess of the amount specified above as "Total
2 Deposit", has been deposited.
3 Subject to payment of amounts into the Build Illinois
4 Fund and the McCormick Place Expansion Project Fund pursuant
5 to the preceding paragraphs or in any amendment thereto
6 hereafter enacted, each month the Department shall pay into
7 the Local Government Distributive Fund .4% of the net revenue
8 realized for the preceding month from the 5% general rate, or
9 .4% of 80% of the net revenue realized for the preceding
10 month from the 6.25% general rate, as the case may be, on the
11 selling price of tangible personal property which amount
12 shall, subject to appropriation, be distributed as provided
13 in Section 2 of the State Revenue Sharing Act. No payments or
14 distributions pursuant to this paragraph shall be made if the
15 tax imposed by this Act on photoprocessing products is
16 declared unconstitutional, or if the proceeds from such tax
17 are unavailable for distribution because of litigation.
18 Subject to payment of amounts into the Build Illinois
19 Fund, the McCormick Place Expansion Project Fund, and the
20 Local Government Distributive Fund pursuant to the preceding
21 paragraphs or in any amendments thereto hereafter enacted,
22 beginning July 1, 1993, the Department shall each month pay
23 into the Illinois Tax Increment Fund 0.27% of 80% of the net
24 revenue realized for the preceding month from the 6.25%
25 general rate on the selling price of tangible personal
26 property.
27 Of the remainder of the moneys received by the Department
28 pursuant to this Act, 75% thereof shall be paid into the
29 State Treasury and 25% shall be reserved in a special account
30 and used only for the transfer to the Common School Fund as
31 part of the monthly transfer from the General Revenue Fund in
32 accordance with Section 8a of the State Finance Act.
33 As soon as possible after the first day of each month,
34 upon certification of the Department of Revenue, the
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1 Comptroller shall order transferred and the Treasurer shall
2 transfer from the General Revenue Fund to the Motor Fuel Tax
3 Fund an amount equal to 1.7% of 80% of the net revenue
4 realized under this Act for the second preceding month;
5 except that this transfer shall not be made for the months
6 February through June of 1992.
7 Net revenue realized for a month shall be the revenue
8 collected by the State pursuant to this Act, less the amount
9 paid out during that month as refunds to taxpayers for
10 overpayment of liability.
11 For greater simplicity of administration, manufacturers,
12 importers and wholesalers whose products are sold at retail
13 in Illinois by numerous retailers, and who wish to do so, may
14 assume the responsibility for accounting and paying to the
15 Department all tax accruing under this Act with respect to
16 such sales, if the retailers who are affected do not make
17 written objection to the Department to this arrangement.
18 (Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
19 90-491, eff. 1-1-99; 90-612, eff. 7-8-98.)
20 Section 120. The Service Use Tax Act is amended by
21 re-enacting Sections 2, 3, 3-5, 3-10, 3-15, 3-20, 3-25, 3-30,
22 3-35, 3-40, 3-45, 3-50, 3-55, 3-60, 3-65, 3d, 7a, 9, 10, and
23 15 as follows:
24 (35 ILCS 110/2) (from Ch. 120, par. 439.32)
25 Sec. 2. "Use" means the exercise by any person of any
26 right or power over tangible personal property incident to
27 the ownership of that property, but does not include the sale
28 or use for demonstration by him of that property in any form
29 as tangible personal property in the regular course of
30 business. "Use" does not mean the interim use of tangible
31 personal property nor the physical incorporation of tangible
32 personal property, as an ingredient or constituent, into
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1 other tangible personal property, (a) which is sold in the
2 regular course of business or (b) which the person
3 incorporating such ingredient or constituent therein has
4 undertaken at the time of such purchase to cause to be
5 transported in interstate commerce to destinations outside
6 the State of Illinois.
7 "Purchased from a serviceman" means the acquisition of
8 the ownership of, or title to, tangible personal property
9 through a sale of service.
10 "Purchaser" means any person who, through a sale of
11 service, acquires the ownership of, or title to, any tangible
12 personal property.
13 "Cost price" means the consideration paid by the
14 serviceman for a purchase valued in money, whether paid in
15 money or otherwise, including cash, credits and services, and
16 shall be determined without any deduction on account of the
17 supplier's cost of the property sold or on account of any
18 other expense incurred by the supplier. When a serviceman
19 contracts out part or all of the services required in his
20 sale of service, it shall be presumed that the cost price to
21 the serviceman of the property transferred to him or her by
22 his or her subcontractor is equal to 50% of the
23 subcontractor's charges to the serviceman in the absence of
24 proof of the consideration paid by the subcontractor for the
25 purchase of such property.
26 "Selling price" means the consideration for a sale valued
27 in money whether received in money or otherwise, including
28 cash, credits and service, and shall be determined without
29 any deduction on account of the serviceman's cost of the
30 property sold, the cost of materials used, labor or service
31 cost or any other expense whatsoever, but does not include
32 interest or finance charges which appear as separate items on
33 the bill of sale or sales contract nor charges that are added
34 to prices by sellers on account of the seller's duty to
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1 collect, from the purchaser, the tax that is imposed by this
2 Act.
3 "Department" means the Department of Revenue.
4 "Person" means any natural individual, firm, partnership,
5 association, joint stock company, joint venture, public or
6 private corporation, limited liability company, and any
7 receiver, executor, trustee, guardian or other representative
8 appointed by order of any court.
9 "Sale of service" means any transaction except:
10 (1) a retail sale of tangible personal property
11 taxable under the Retailers' Occupation Tax Act or under
12 the Use Tax Act.
13 (2) a sale of tangible personal property for the
14 purpose of resale made in compliance with Section 2c of
15 the Retailers' Occupation Tax Act.
16 (3) except as hereinafter provided, a sale or
17 transfer of tangible personal property as an incident to
18 the rendering of service for or by any governmental body,
19 or for or by any corporation, society, association,
20 foundation or institution organized and operated
21 exclusively for charitable, religious or educational
22 purposes or any not-for-profit corporation, society,
23 association, foundation, institution or organization
24 which has no compensated officers or employees and which
25 is organized and operated primarily for the recreation of
26 persons 55 years of age or older. A limited liability
27 company may qualify for the exemption under this
28 paragraph only if the limited liability company is
29 organized and operated exclusively for educational
30 purposes.
31 (4) a sale or transfer of tangible personal
32 property as an incident to the rendering of service for
33 interstate carriers for hire for use as rolling stock
34 moving in interstate commerce or by lessors under a lease
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1 of one year or longer, executed or in effect at the time
2 of purchase of personal property, to interstate carriers
3 for hire for use as rolling stock moving in interstate
4 commerce so long as so used by such interstate carriers
5 for hire, and equipment operated by a telecommunications
6 provider, licensed as a common carrier by the Federal
7 Communications Commission, which is permanently installed
8 in or affixed to aircraft moving in interstate commerce.
9 (4a) a sale or transfer of tangible personal
10 property as an incident to the rendering of service for
11 owners, lessors, or shippers of tangible personal
12 property which is utilized by interstate carriers for
13 hire for use as rolling stock moving in interstate
14 commerce so long as so used by interstate carriers for
15 hire, and equipment operated by a telecommunications
16 provider, licensed as a common carrier by the Federal
17 Communications Commission, which is permanently installed
18 in or affixed to aircraft moving in interstate commerce.
19 (5) a sale or transfer of machinery and equipment
20 used primarily in the process of the manufacturing or
21 assembling, either in an existing, an expanded or a new
22 manufacturing facility, of tangible personal property for
23 wholesale or retail sale or lease, whether such sale or
24 lease is made directly by the manufacturer or by some
25 other person, whether the materials used in the process
26 are owned by the manufacturer or some other person, or
27 whether such sale or lease is made apart from or as an
28 incident to the seller's engaging in a service occupation
29 and the applicable tax is a Service Use Tax or Service
30 Occupation Tax, rather than Use Tax or Retailers'
31 Occupation Tax.
32 (5a) the repairing, reconditioning or remodeling,
33 for a common carrier by rail, of tangible personal
34 property which belongs to such carrier for hire, and as
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1 to which such carrier receives the physical possession of
2 the repaired, reconditioned or remodeled item of tangible
3 personal property in Illinois, and which such carrier
4 transports, or shares with another common carrier in the
5 transportation of such property, out of Illinois on a
6 standard uniform bill of lading showing the person who
7 repaired, reconditioned or remodeled the property to a
8 destination outside Illinois, for use outside Illinois.
9 (5b) a sale or transfer of tangible personal
10 property which is produced by the seller thereof on
11 special order in such a way as to have made the
12 applicable tax the Service Occupation Tax or the Service
13 Use Tax, rather than the Retailers' Occupation Tax or the
14 Use Tax, for an interstate carrier by rail which receives
15 the physical possession of such property in Illinois, and
16 which transports such property, or shares with another
17 common carrier in the transportation of such property,
18 out of Illinois on a standard uniform bill of lading
19 showing the seller of the property as the shipper or
20 consignor of such property to a destination outside
21 Illinois, for use outside Illinois.
22 (6) a sale or transfer of distillation machinery
23 and equipment, sold as a unit or kit and assembled or
24 installed by the retailer, which machinery and equipment
25 is certified by the user to be used only for the
26 production of ethyl alcohol that will be used for
27 consumption as motor fuel or as a component of motor fuel
28 for the personal use of such user and not subject to sale
29 or resale.
30 (7) at the election of any serviceman not required
31 to be otherwise registered as a retailer under Section 2a
32 of the Retailers' Occupation Tax Act, made for each
33 fiscal year sales of service in which the aggregate
34 annual cost price of tangible personal property
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1 transferred as an incident to the sales of service is
2 less than 35%, or 75% in the case of servicemen
3 transferring prescription drugs or servicemen engaged in
4 graphic arts production, of the aggregate annual total
5 gross receipts from all sales of service. The purchase of
6 such tangible personal property by the serviceman shall
7 be subject to tax under the Retailers' Occupation Tax Act
8 and the Use Tax Act. However, if a primary serviceman
9 who has made the election described in this paragraph
10 subcontracts service work to a secondary serviceman who
11 has also made the election described in this paragraph,
12 the primary serviceman does not incur a Use Tax liability
13 if the secondary serviceman (i) has paid or will pay Use
14 Tax on his or her cost price of any tangible personal
15 property transferred to the primary serviceman and (ii)
16 certifies that fact in writing to the primary serviceman.
17 Tangible personal property transferred incident to the
18 completion of a maintenance agreement is exempt from the tax
19 imposed pursuant to this Act.
20 Exemption (5) also includes machinery and equipment used
21 in the general maintenance or repair of such exempt machinery
22 and equipment or for in-house manufacture of exempt machinery
23 and equipment. For the purposes of exemption (5), each of
24 these terms shall have the following meanings: (1)
25 "manufacturing process" shall mean the production of any
26 article of tangible personal property, whether such article
27 is a finished product or an article for use in the process of
28 manufacturing or assembling a different article of tangible
29 personal property, by procedures commonly regarded as
30 manufacturing, processing, fabricating, or refining which
31 changes some existing material or materials into a material
32 with a different form, use or name. In relation to a
33 recognized integrated business composed of a series of
34 operations which collectively constitute manufacturing, or
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1 individually constitute manufacturing operations, the
2 manufacturing process shall be deemed to commence with the
3 first operation or stage of production in the series, and
4 shall not be deemed to end until the completion of the final
5 product in the last operation or stage of production in the
6 series; and further, for purposes of exemption (5),
7 photoprocessing is deemed to be a manufacturing process of
8 tangible personal property for wholesale or retail sale; (2)
9 "assembling process" shall mean the production of any article
10 of tangible personal property, whether such article is a
11 finished product or an article for use in the process of
12 manufacturing or assembling a different article of tangible
13 personal property, by the combination of existing materials
14 in a manner commonly regarded as assembling which results in
15 a material of a different form, use or name; (3) "machinery"
16 shall mean major mechanical machines or major components of
17 such machines contributing to a manufacturing or assembling
18 process; and (4) "equipment" shall include any independent
19 device or tool separate from any machinery but essential to
20 an integrated manufacturing or assembly process; including
21 computers used primarily in operating exempt machinery and
22 equipment in a computer assisted design, computer assisted
23 manufacturing (CAD/CAM) system; or any subunit or assembly
24 comprising a component of any machinery or auxiliary, adjunct
25 or attachment parts of machinery, such as tools, dies, jigs,
26 fixtures, patterns and molds; or any parts which require
27 periodic replacement in the course of normal operation; but
28 shall not include hand tools. The purchaser of such machinery
29 and equipment who has an active resale registration number
30 shall furnish such number to the seller at the time of
31 purchase. The user of such machinery and equipment and tools
32 without an active resale registration number shall prepare a
33 certificate of exemption for each transaction stating facts
34 establishing the exemption for that transaction, which
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1 certificate shall be available to the Department for
2 inspection or audit. The Department shall prescribe the form
3 of the certificate.
4 Any informal rulings, opinions or letters issued by the
5 Department in response to an inquiry or request for any
6 opinion from any person regarding the coverage and
7 applicability of exemption (5) to specific devices shall be
8 published, maintained as a public record, and made available
9 for public inspection and copying. If the informal ruling,
10 opinion or letter contains trade secrets or other
11 confidential information, where possible the Department shall
12 delete such information prior to publication. Whenever such
13 informal rulings, opinions, or letters contain any policy of
14 general applicability, the Department shall formulate and
15 adopt such policy as a rule in accordance with the provisions
16 of the Illinois Administrative Procedure Act.
17 On and after July 1, 1987, no entity otherwise eligible
18 under exemption (3) of this Section shall make tax free
19 purchases unless it has an active exemption identification
20 number issued by the Department.
21 The purchase, employment and transfer of such tangible
22 personal property as newsprint and ink for the primary
23 purpose of conveying news (with or without other information)
24 is not a purchase, use or sale of service or of tangible
25 personal property within the meaning of this Act.
26 "Serviceman" means any person who is engaged in the
27 occupation of making sales of service.
28 "Sale at retail" means "sale at retail" as defined in the
29 Retailers' Occupation Tax Act.
30 "Supplier" means any person who makes sales of tangible
31 personal property to servicemen for the purpose of resale as
32 an incident to a sale of service.
33 "Serviceman maintaining a place of business in this
34 State", or any like term, means and includes any serviceman:
SB144 Engrossed -58- LRB9101598PTpk
1 1. having or maintaining within this State,
2 directly or by a subsidiary, an office, distribution
3 house, sales house, warehouse or other place of business,
4 or any agent or other representative operating within
5 this State under the authority of the serviceman or its
6 subsidiary, irrespective of whether such place of
7 business or agent or other representative is located here
8 permanently or temporarily, or whether such serviceman or
9 subsidiary is licensed to do business in this State;
10 2. soliciting orders for tangible personal property
11 by means of a telecommunication or television shopping
12 system (which utilizes toll free numbers) which is
13 intended by the retailer to be broadcast by cable
14 television or other means of broadcasting, to consumers
15 located in this State;
16 3. pursuant to a contract with a broadcaster or
17 publisher located in this State, soliciting orders for
18 tangible personal property by means of advertising which
19 is disseminated primarily to consumers located in this
20 State and only secondarily to bordering jurisdictions;
21 4. soliciting orders for tangible personal property
22 by mail if the solicitations are substantial and
23 recurring and if the retailer benefits from any banking,
24 financing, debt collection, telecommunication, or
25 marketing activities occurring in this State or benefits
26 from the location in this State of authorized
27 installation, servicing, or repair facilities;
28 5. being owned or controlled by the same interests
29 which own or control any retailer engaging in business in
30 the same or similar line of business in this State;
31 6. having a franchisee or licensee operating under
32 its trade name if the franchisee or licensee is required
33 to collect the tax under this Section;
34 7. pursuant to a contract with a cable television
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1 operator located in this State, soliciting orders for
2 tangible personal property by means of advertising which
3 is transmitted or distributed over a cable television
4 system in this State; or
5 8. engaging in activities in Illinois, which
6 activities in the state in which the supply business
7 engaging in such activities is located would constitute
8 maintaining a place of business in that state.
9 (Source: P.A. 88-480; 88-505; 88-547; 88-670, eff. 12-2-94;
10 89-675, eff. 8-14-96.)
11 (35 ILCS 110/3) (from Ch. 120, par. 439.33)
12 Sec. 3. Tax imposed. A tax is imposed upon the
13 privilege of using in this State real or tangible personal
14 property acquired as an incident to the purchase of a service
15 from a serviceman, including computer software, and including
16 photographs, negatives, and positives that are the product of
17 photoprocessing, but not including products of
18 photoprocessing produced for use in motion pictures for
19 public commercial exhibition.
20 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
21 86-1028; 86-1475; 87-879.)
22 (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
23 Sec. 3-5. Exemptions. Use of the following tangible
24 personal property is exempt from the tax imposed by this Act:
25 (1) Personal property purchased from a corporation,
26 society, association, foundation, institution, or
27 organization, other than a limited liability company, that is
28 organized and operated as a not-for-profit service enterprise
29 for the benefit of persons 65 years of age or older if the
30 personal property was not purchased by the enterprise for the
31 purpose of resale by the enterprise.
32 (2) Personal property purchased by a non-profit Illinois
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1 county fair association for use in conducting, operating, or
2 promoting the county fair.
3 (3) Personal property purchased by a not-for-profit
4 music or dramatic arts organization that establishes, by
5 proof required by the Department by rule, that it has
6 received an exemption under Section 501(c)(3) of the Internal
7 Revenue Code and that is organized and operated for the
8 presentation of live public performances of musical or
9 theatrical works on a regular basis.
10 (4) Legal tender, currency, medallions, or gold or
11 silver coinage issued by the State of Illinois, the
12 government of the United States of America, or the government
13 of any foreign country, and bullion.
14 (5) Graphic arts machinery and equipment, including
15 repair and replacement parts, both new and used, and
16 including that manufactured on special order or purchased for
17 lease, certified by the purchaser to be used primarily for
18 graphic arts production.
19 (6) Personal property purchased from a teacher-sponsored
20 student organization affiliated with an elementary or
21 secondary school located in Illinois.
22 (7) Farm machinery and equipment, both new and used,
23 including that manufactured on special order, certified by
24 the purchaser to be used primarily for production agriculture
25 or State or federal agricultural programs, including
26 individual replacement parts for the machinery and equipment,
27 including machinery and equipment purchased for lease, and
28 including implements of husbandry defined in Section 1-130 of
29 the Illinois Vehicle Code, farm machinery and agricultural
30 chemical and fertilizer spreaders, and nurse wagons required
31 to be registered under Section 3-809 of the Illinois Vehicle
32 Code, but excluding other motor vehicles required to be
33 registered under the Illinois Vehicle Code. Horticultural
34 polyhouses or hoop houses used for propagating, growing, or
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1 overwintering plants shall be considered farm machinery and
2 equipment under this item (7). Agricultural chemical tender
3 tanks and dry boxes shall include units sold separately from
4 a motor vehicle required to be licensed and units sold
5 mounted on a motor vehicle required to be licensed if the
6 selling price of the tender is separately stated.
7 Farm machinery and equipment shall include precision
8 farming equipment that is installed or purchased to be
9 installed on farm machinery and equipment including, but not
10 limited to, tractors, harvesters, sprayers, planters,
11 seeders, or spreaders. Precision farming equipment includes,
12 but is not limited to, soil testing sensors, computers,
13 monitors, software, global positioning and mapping systems,
14 and other such equipment.
15 Farm machinery and equipment also includes computers,
16 sensors, software, and related equipment used primarily in
17 the computer-assisted operation of production agriculture
18 facilities, equipment, and activities such as, but not
19 limited to, the collection, monitoring, and correlation of
20 animal and crop data for the purpose of formulating animal
21 diets and agricultural chemicals. This item (7) is exempt
22 from the provisions of Section 3-75.
23 (8) Fuel and petroleum products sold to or used by an
24 air common carrier, certified by the carrier to be used for
25 consumption, shipment, or storage in the conduct of its
26 business as an air common carrier, for a flight destined for
27 or returning from a location or locations outside the United
28 States without regard to previous or subsequent domestic
29 stopovers.
30 (9) Proceeds of mandatory service charges separately
31 stated on customers' bills for the purchase and consumption
32 of food and beverages acquired as an incident to the purchase
33 of a service from a serviceman, to the extent that the
34 proceeds of the service charge are in fact turned over as
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1 tips or as a substitute for tips to the employees who
2 participate directly in preparing, serving, hosting or
3 cleaning up the food or beverage function with respect to
4 which the service charge is imposed.
5 (10) Oil field exploration, drilling, and production
6 equipment, including (i) rigs and parts of rigs, rotary rigs,
7 cable tool rigs, and workover rigs, (ii) pipe and tubular
8 goods, including casing and drill strings, (iii) pumps and
9 pump-jack units, (iv) storage tanks and flow lines, (v) any
10 individual replacement part for oil field exploration,
11 drilling, and production equipment, and (vi) machinery and
12 equipment purchased for lease; but excluding motor vehicles
13 required to be registered under the Illinois Vehicle Code.
14 (11) Proceeds from the sale of photoprocessing machinery
15 and equipment, including repair and replacement parts, both
16 new and used, including that manufactured on special order,
17 certified by the purchaser to be used primarily for
18 photoprocessing, and including photoprocessing machinery and
19 equipment purchased for lease.
20 (12) Coal exploration, mining, offhighway hauling,
21 processing, maintenance, and reclamation equipment, including
22 replacement parts and equipment, and including equipment
23 purchased for lease, but excluding motor vehicles required to
24 be registered under the Illinois Vehicle Code.
25 (13) Semen used for artificial insemination of livestock
26 for direct agricultural production.
27 (14) Horses, or interests in horses, registered with and
28 meeting the requirements of any of the Arabian Horse Club
29 Registry of America, Appaloosa Horse Club, American Quarter
30 Horse Association, United States Trotting Association, or
31 Jockey Club, as appropriate, used for purposes of breeding or
32 racing for prizes.
33 (15) Computers and communications equipment utilized for
34 any hospital purpose and equipment used in the diagnosis,
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1 analysis, or treatment of hospital patients purchased by a
2 lessor who leases the equipment, under a lease of one year or
3 longer executed or in effect at the time the lessor would
4 otherwise be subject to the tax imposed by this Act, to a
5 hospital that has been issued an active tax exemption
6 identification number by the Department under Section 1g of
7 the Retailers' Occupation Tax Act. If the equipment is leased
8 in a manner that does not qualify for this exemption or is
9 used in any other non-exempt manner, the lessor shall be
10 liable for the tax imposed under this Act or the Use Tax Act,
11 as the case may be, based on the fair market value of the
12 property at the time the non-qualifying use occurs. No
13 lessor shall collect or attempt to collect an amount (however
14 designated) that purports to reimburse that lessor for the
15 tax imposed by this Act or the Use Tax Act, as the case may
16 be, if the tax has not been paid by the lessor. If a lessor
17 improperly collects any such amount from the lessee, the
18 lessee shall have a legal right to claim a refund of that
19 amount from the lessor. If, however, that amount is not
20 refunded to the lessee for any reason, the lessor is liable
21 to pay that amount to the Department.
22 (16) Personal property purchased by a lessor who leases
23 the property, under a lease of one year or longer executed or
24 in effect at the time the lessor would otherwise be subject
25 to the tax imposed by this Act, to a governmental body that
26 has been issued an active tax exemption identification number
27 by the Department under Section 1g of the Retailers'
28 Occupation Tax Act. If the property is leased in a manner
29 that does not qualify for this exemption or is used in any
30 other non-exempt manner, the lessor shall be liable for the
31 tax imposed under this Act or the Use Tax Act, as the case
32 may be, based on the fair market value of the property at the
33 time the non-qualifying use occurs. No lessor shall collect
34 or attempt to collect an amount (however designated) that
SB144 Engrossed -64- LRB9101598PTpk
1 purports to reimburse that lessor for the tax imposed by this
2 Act or the Use Tax Act, as the case may be, if the tax has
3 not been paid by the lessor. If a lessor improperly collects
4 any such amount from the lessee, the lessee shall have a
5 legal right to claim a refund of that amount from the lessor.
6 If, however, that amount is not refunded to the lessee for
7 any reason, the lessor is liable to pay that amount to the
8 Department.
9 (17) Beginning with taxable years ending on or after
10 December 31, 1995 and ending with taxable years ending on or
11 before December 31, 2004, personal property that is donated
12 for disaster relief to be used in a State or federally
13 declared disaster area in Illinois or bordering Illinois by a
14 manufacturer or retailer that is registered in this State to
15 a corporation, society, association, foundation, or
16 institution that has been issued a sales tax exemption
17 identification number by the Department that assists victims
18 of the disaster who reside within the declared disaster area.
19 (18) Beginning with taxable years ending on or after
20 December 31, 1995 and ending with taxable years ending on or
21 before December 31, 2004, personal property that is used in
22 the performance of infrastructure repairs in this State,
23 including but not limited to municipal roads and streets,
24 access roads, bridges, sidewalks, waste disposal systems,
25 water and sewer line extensions, water distribution and
26 purification facilities, storm water drainage and retention
27 facilities, and sewage treatment facilities, resulting from a
28 State or federally declared disaster in Illinois or bordering
29 Illinois when such repairs are initiated on facilities
30 located in the declared disaster area within 6 months after
31 the disaster.
32 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
33 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
34 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
SB144 Engrossed -65- LRB9101598PTpk
1 eff. 12-12-97; 90-605, eff. 6-30-98.)
2 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
3 Sec. 3-10. Rate of tax. Unless otherwise provided in
4 this Section, the tax imposed by this Act is at the rate of
5 6.25% of the selling price of tangible personal property
6 transferred as an incident to the sale of service, but, for
7 the purpose of computing this tax, in no event shall the
8 selling price be less than the cost price of the property to
9 the serviceman.
10 With respect to gasohol, as defined in the Use Tax Act,
11 the tax imposed by this Act applies to 70% of the selling
12 price of property transferred as an incident to the sale of
13 service on or after January 1, 1990, and before July 1, 2003,
14 and to 100% of the selling price thereafter.
15 At the election of any registered serviceman made for
16 each fiscal year, sales of service in which the aggregate
17 annual cost price of tangible personal property transferred
18 as an incident to the sales of service is less than 35%, or
19 75% in the case of servicemen transferring prescription drugs
20 or servicemen engaged in graphic arts production, of the
21 aggregate annual total gross receipts from all sales of
22 service, the tax imposed by this Act shall be based on the
23 serviceman's cost price of the tangible personal property
24 transferred as an incident to the sale of those services.
25 The tax shall be imposed at the rate of 1% on food
26 prepared for immediate consumption and transferred incident
27 to a sale of service subject to this Act or the Service
28 Occupation Tax Act by an entity licensed under the Hospital
29 Licensing Act or the Nursing Home Care Act. The tax shall
30 also be imposed at the rate of 1% on food for human
31 consumption that is to be consumed off the premises where it
32 is sold (other than alcoholic beverages, soft drinks, and
33 food that has been prepared for immediate consumption and is
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1 not otherwise included in this paragraph) and prescription
2 and nonprescription medicines, drugs, medical appliances,
3 modifications to a motor vehicle for the purpose of rendering
4 it usable by a disabled person, and insulin, urine testing
5 materials, syringes, and needles used by diabetics, for human
6 use. For the purposes of this Section, the term "soft drinks"
7 means any complete, finished, ready-to-use, non-alcoholic
8 drink, whether carbonated or not, including but not limited
9 to soda water, cola, fruit juice, vegetable juice, carbonated
10 water, and all other preparations commonly known as soft
11 drinks of whatever kind or description that are contained in
12 any closed or sealed bottle, can, carton, or container,
13 regardless of size. "Soft drinks" does not include coffee,
14 tea, non-carbonated water, infant formula, milk or milk
15 products as defined in the Grade A Pasteurized Milk and Milk
16 Products Act, or drinks containing 50% or more natural fruit
17 or vegetable juice.
18 Notwithstanding any other provisions of this Act, "food
19 for human consumption that is to be consumed off the premises
20 where it is sold" includes all food sold through a vending
21 machine, except soft drinks and food products that are
22 dispensed hot from a vending machine, regardless of the
23 location of the vending machine.
24 If the property that is acquired from a serviceman is
25 acquired outside Illinois and used outside Illinois before
26 being brought to Illinois for use here and is taxable under
27 this Act, the "selling price" on which the tax is computed
28 shall be reduced by an amount that represents a reasonable
29 allowance for depreciation for the period of prior
30 out-of-state use.
31 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
32 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
33 6-30-98; 90-606, eff. 6-30-98.)
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1 (35 ILCS 110/3-15) (from Ch. 120, par. 439.33-15)
2 Sec. 3-15. Photoprocessing. For purposes of the tax
3 imposed on photographs, negatives, and positives by this Act,
4 "photoprocessing" includes, but is not limited to, developing
5 films, positives, negatives, and transparencies, and tinting,
6 coloring, making, and enlarging prints. Photoprocessing does
7 not include color separation, typesetting, and platemaking by
8 photographic means in the graphic arts industry and does not
9 include any procedure, process, or activity connected with
10 the creation of the images on the film from which the
11 negatives, positives, or photographs are derived. The charge
12 for in-house photoprocessing may not be less than the
13 photoprocessor's cost price of materials. In transactions in
14 which products of photoprocessing are sold in conjunction
15 with other services, if a charge for the photoprocessing
16 component is not separately stated, tax is imposed on 50% of
17 the entire selling price unless the sale is made by a
18 professional photographer, in which case tax is imposed on
19 10% of the entire selling price.
20 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
21 86-1028; 86-1475.)
22 (35 ILCS 110/3-20) (from Ch. 120, par. 439.33-20)
23 Sec. 3-20. Bullion. For purposes of the exemption
24 pertaining to bullion, "bullion" means gold, silver, or
25 platinum in a bulk state with a purity of not less than 980
26 parts per 1,000.
27 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
28 86-1028; 86-1475.)
29 (35 ILCS 110/3-25) (from Ch. 120, par. 439.33-25)
30 Sec. 3-25. Computer software. For the purposes of this
31 Act, "computer software" means a set of statements, data, or
32 instructions to be used directly or indirectly in a computer
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1 in order to bring about a certain result in any form in which
2 those statements, data, or instructions may be embodied,
3 transmitted, or fixed, by any method now known or hereafter
4 developed, regardless of whether the statements, data, or
5 instructions are capable of being perceived by or
6 communicated to humans, and includes prewritten or canned
7 software that is held for repeated sale or lease, and all
8 associated documentation and materials, if any, whether
9 contained on magnetic tapes, discs, cards, or other devices
10 or media, but does not include software that is adapted to
11 specific individualized requirements of a purchaser,
12 custom-made and modified software designed for a particular
13 or limited use by a purchaser, or software used to operate
14 exempt machinery and equipment used in the process of
15 manufacturing or assembling tangible personal property for
16 wholesale or retail sale or lease.
17 For the purposes of this Act, computer software shall be
18 considered to be tangible personal property.
19 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
20 86-1028; 86-1475.)
21 (35 ILCS 110/3-30) (from Ch. 120, par. 439.33-30)
22 Sec. 3-30. Graphic arts production. For the purposes of
23 this Act, "graphic arts production" means printing by one or
24 more of the common processes or graphic arts production
25 services as those processes and services are defined in the
26 Major Group 27 of the U.S. Standard Industrial Classification
27 Manual.
28 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
29 86-1028; 86-1475.)
30 (35 ILCS 110/3-35) (from Ch. 120, par. 439.33-35)
31 Sec. 3-35. Production agriculture. For purposes of this
32 Act, "production agriculture" means the raising of or the
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1 propagation of livestock; crops for sale for human
2 consumption; crops for livestock consumption; and production
3 seed stock grown for the propagation of feed grains and the
4 husbandry of animals or for the purpose of providing a food
5 product, including the husbandry of blood stock as a main
6 source of providing a food product. "Production agriculture"
7 also means animal husbandry, floriculture, aquaculture,
8 horticulture, and viticulture.
9 (Source: P.A. 89-220, eff. 1-1-96.)
10 (35 ILCS 110/3-40) (from Ch. 120, par. 439.33-40)
11 Sec. 3-40. Collection. The tax imposed by this Act
12 shall be collected at the time of purchase in the manner
13 prescribed by the Department from the user by a serviceman
14 maintaining a place of business in this State or by a
15 serviceman authorized by the Department under Section 7 of
16 this Act, and the tax shall be remitted to the Department as
17 provided in Section 9 of this Act.
18 The tax imposed by this Act that is not paid to a
19 serviceman under this Section shall be paid to the Department
20 directly by any person using the property within this State
21 as provided in Section 10 of this Act.
22 If a serviceman collects Service Use Tax measured by
23 receipts or selling prices that are not subject to Service
24 Use Tax, or if a serviceman, in collecting Service Use Tax
25 measured by receipts or selling prices that are subject to
26 tax under this Act, collects more from the purchaser than the
27 required amount of the Service Use Tax on the transaction,
28 the purchaser shall have a legal right to claim a refund of
29 that amount from the serviceman. If, however, that amount is
30 not refunded to the purchaser for any reason, the serviceman
31 is liable to pay that amount to the Department. This
32 paragraph does not apply to an amount collected by the
33 serviceman as Service Use Tax on receipts or selling prices
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1 that are subject to tax under this Act as long as the
2 collection is made in compliance with the tax collection
3 brackets prescribed by the Department in its rules and
4 regulations.
5 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
6 86-1028; 86-1475.)
7 (35 ILCS 110/3-45) (from Ch. 120, par. 439.33-45)
8 Sec. 3-45. Multistate exemption. To prevent actual or
9 likely multistate taxation, the tax imposed by this Act does
10 not apply to the use of tangible personal property in this
11 State under the following circumstances:
12 (a) The use, in this State, of property acquired outside
13 this State by a nonresident individual and brought into this
14 State by the individual for his or her own use while
15 temporarily within this State or while passing through this
16 State.
17 (b) The use, in this State, of property that is acquired
18 outside this State and that is moved into this State for use
19 as rolling stock moving in interstate commerce.
20 (c) The use, in this State, of property that is acquired
21 outside this State and caused to be brought into this State
22 by a person who has already paid a tax in another state in
23 respect to the sale, purchase, or use of that property, to
24 the extent of the amount of the tax properly due and paid in
25 the other state.
26 (d) The temporary storage, in this State, of property
27 that is acquired outside this State and that after being
28 brought into this State and stored here temporarily, is used
29 solely outside this State or is physically attached to or
30 incorporated into other property that is used solely outside
31 this State, or is altered by converting, fabricating,
32 manufacturing, printing, processing, or shaping, and, as
33 altered, is used solely outside this State.
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1 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
2 86-1028; 86-1475.)
3 (35 ILCS 110/3-50) (from Ch. 120, par. 439.33-50)
4 Sec. 3-50. Rolling stock exemption. The rolling stock
5 exemption applies to rolling stock used by an interstate
6 carrier for hire, even just between points in Illinois, if
7 the rolling stock transports, for hire, persons whose
8 journeys or property whose shipments originate or terminate
9 outside Illinois.
10 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
11 86-1028; 86-1475.)
12 (35 ILCS 110/3-55) (from Ch. 120, par. 439.33-55)
13 Sec. 3-55. S. O. T. nontaxability. If the serviceman
14 would not be taxable under the Service Occupation Tax Act
15 despite all elements of his sale of service occurring in
16 Illinois, then the tax imposed by this Act does not apply to
17 the use in this State of the property transferred as a
18 necessary incident to the sale of service.
19 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
20 86-1028; 86-1475.)
21 (35 ILCS 110/3-60) (from Ch. 120, par. 439.33-60)
22 Sec. 3-60. Property acquired by nonresident. The tax
23 imposed by this Act does not apply to the use, in this State,
24 of property that is acquired outside this State by a
25 nonresident individual who then brings the property to this
26 State for use here and who has used the property outside this
27 State for at least 3 months before bringing the property to
28 this State.
29 Where a business that is not operated in Illinois, but is
30 operated in another state, is moved to Illinois or opens up
31 an office, plant, or other business facility in Illinois,
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1 that business shall not be taxed on its use, in Illinois, of
2 used property that the business bought outside Illinois and
3 used outside Illinois in the operation of the business for at
4 least 3 months before moving the used property to Illinois
5 for use in this State.
6 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
7 86-1028; 86-1475.)
8 (35 ILCS 110/3-65) (from Ch. 120, par. 439.33-65)
9 Sec. 3-65. Liability because of amendatory Act.
10 Revisions in Section 3 (now Sections 3 through 3-65) by
11 Public Act 85-1135 do not affect tax liability that arose
12 before January 1, 1990.
13 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
14 86-1028; 86-1475.)
15 (35 ILCS 110/3d) (from Ch. 120, par. 439.33d)
16 Sec. 3d. (1) Except as provided in paragraph (2) of this
17 Section, the selling price of each item of tangible personal
18 property transferred incident to a sale of service may be
19 stated as a distinct item by the serviceman to the service
20 customer and the tax imposed by this Act shall when collected
21 be stated as a distinct item separate and apart from the
22 selling price of the tangible personal property. If the
23 selling price of each item of tangible personal property
24 transferred incidental to a sale of service is not stated as
25 a separate item on the serviceman's billing to the service
26 customer, then the tax imposed by this Act shall be based on
27 50% of the serviceman's entire billing to the service
28 customer.
29 (2) When a serviceman contracts to design, develop and
30 produce special order machinery or equipment, the tax imposed
31 by this Act shall be based on the serviceman's cost price of
32 the tangible personal property transferred incident to the
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1 completion of the contract.
2 (Source: P.A. 85-1135.)
3 (35 ILCS 110/7a) (from Ch. 120, par. 439.37a)
4 Sec. 7a. It is unlawful for any serviceman to advertise
5 or hold out or state to the public or to any service
6 customer, purchaser, consumer or user, directly or
7 indirectly, that the tax imposed by this Act or any part
8 thereof will be assumed or absolved by the serviceman or that
9 it will not be added to the selling price of the property
10 transferred as an incident to a sale of service, or if added
11 that it or any part thereof will be refunded other than when
12 the serviceman refunds the selling price and tax because of
13 the merchandise being returned to the serviceman or other
14 than when the serviceman credits or refunds the tax to the
15 service customer to support a claim filed with the Department
16 under the Service Occupation Tax Act or under this Act. Any
17 person violating any of the provisions of this Section within
18 the State shall be guilty of a Class A misdemeanor.
19 (Source: P.A. 85-1135.)
20 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
21 Sec. 9. Each serviceman required or authorized to
22 collect the tax herein imposed shall pay to the Department
23 the amount of such tax (except as otherwise provided) at the
24 time when he is required to file his return for the period
25 during which such tax was collected, less a discount of 2.1%
26 prior to January 1, 1990 and 1.75% on and after January 1,
27 1990, or $5 per calendar year, whichever is greater, which is
28 allowed to reimburse the serviceman for expenses incurred in
29 collecting the tax, keeping records, preparing and filing
30 returns, remitting the tax and supplying data to the
31 Department on request. A serviceman need not remit that part
32 of any tax collected by him to the extent that he is required
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1 to pay and does pay the tax imposed by the Service Occupation
2 Tax Act with respect to his sale of service involving the
3 incidental transfer by him of the same property.
4 Except as provided hereinafter in this Section, on or
5 before the twentieth day of each calendar month, such
6 serviceman shall file a return for the preceding calendar
7 month in accordance with reasonable Rules and Regulations to
8 be promulgated by the Department. Such return shall be filed
9 on a form prescribed by the Department and shall contain such
10 information as the Department may reasonably require.
11 The Department may require returns to be filed on a
12 quarterly basis. If so required, a return for each calendar
13 quarter shall be filed on or before the twentieth day of the
14 calendar month following the end of such calendar quarter.
15 The taxpayer shall also file a return with the Department for
16 each of the first two months of each calendar quarter, on or
17 before the twentieth day of the following calendar month,
18 stating:
19 1. The name of the seller;
20 2. The address of the principal place of business
21 from which he engages in business as a serviceman in this
22 State;
23 3. The total amount of taxable receipts received by
24 him during the preceding calendar month, including
25 receipts from charge and time sales, but less all
26 deductions allowed by law;
27 4. The amount of credit provided in Section 2d of
28 this Act;
29 5. The amount of tax due;
30 5-5. The signature of the taxpayer; and
31 6. Such other reasonable information as the
32 Department may require.
33 If a taxpayer fails to sign a return within 30 days after
34 the proper notice and demand for signature by the Department,
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1 the return shall be considered valid and any amount shown to
2 be due on the return shall be deemed assessed.
3 Beginning October 1, 1993, a taxpayer who has an average
4 monthly tax liability of $150,000 or more shall make all
5 payments required by rules of the Department by electronic
6 funds transfer. Beginning October 1, 1994, a taxpayer who
7 has an average monthly tax liability of $100,000 or more
8 shall make all payments required by rules of the Department
9 by electronic funds transfer. Beginning October 1, 1995, a
10 taxpayer who has an average monthly tax liability of $50,000
11 or more shall make all payments required by rules of the
12 Department by electronic funds transfer. The term "average
13 monthly tax liability" means the sum of the taxpayer's
14 liabilities under this Act, and under all other State and
15 local occupation and use tax laws administered by the
16 Department, for the immediately preceding calendar year
17 divided by 12.
18 Before August 1 of each year beginning in 1993, the
19 Department shall notify all taxpayers required to make
20 payments by electronic funds transfer. All taxpayers required
21 to make payments by electronic funds transfer shall make
22 those payments for a minimum of one year beginning on October
23 1.
24 Any taxpayer not required to make payments by electronic
25 funds transfer may make payments by electronic funds transfer
26 with the permission of the Department.
27 All taxpayers required to make payment by electronic
28 funds transfer and any taxpayers authorized to voluntarily
29 make payments by electronic funds transfer shall make those
30 payments in the manner authorized by the Department.
31 The Department shall adopt such rules as are necessary to
32 effectuate a program of electronic funds transfer and the
33 requirements of this Section.
34 If the serviceman is otherwise required to file a monthly
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1 return and if the serviceman's average monthly tax liability
2 to the Department does not exceed $200, the Department may
3 authorize his returns to be filed on a quarter annual basis,
4 with the return for January, February and March of a given
5 year being due by April 20 of such year; with the return for
6 April, May and June of a given year being due by July 20 of
7 such year; with the return for July, August and September of
8 a given year being due by October 20 of such year, and with
9 the return for October, November and December of a given year
10 being due by January 20 of the following year.
11 If the serviceman is otherwise required to file a monthly
12 or quarterly return and if the serviceman's average monthly
13 tax liability to the Department does not exceed $50, the
14 Department may authorize his returns to be filed on an annual
15 basis, with the return for a given year being due by January
16 20 of the following year.
17 Such quarter annual and annual returns, as to form and
18 substance, shall be subject to the same requirements as
19 monthly returns.
20 Notwithstanding any other provision in this Act
21 concerning the time within which a serviceman may file his
22 return, in the case of any serviceman who ceases to engage in
23 a kind of business which makes him responsible for filing
24 returns under this Act, such serviceman shall file a final
25 return under this Act with the Department not more than 1
26 month after discontinuing such business.
27 Where a serviceman collects the tax with respect to the
28 selling price of property which he sells and the purchaser
29 thereafter returns such property and the serviceman refunds
30 the selling price thereof to the purchaser, such serviceman
31 shall also refund, to the purchaser, the tax so collected
32 from the purchaser. When filing his return for the period in
33 which he refunds such tax to the purchaser, the serviceman
34 may deduct the amount of the tax so refunded by him to the
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1 purchaser from any other Service Use Tax, Service Occupation
2 Tax, retailers' occupation tax or use tax which such
3 serviceman may be required to pay or remit to the Department,
4 as shown by such return, provided that the amount of the tax
5 to be deducted shall previously have been remitted to the
6 Department by such serviceman. If the serviceman shall not
7 previously have remitted the amount of such tax to the
8 Department, he shall be entitled to no deduction hereunder
9 upon refunding such tax to the purchaser.
10 Any serviceman filing a return hereunder shall also
11 include the total tax upon the selling price of tangible
12 personal property purchased for use by him as an incident to
13 a sale of service, and such serviceman shall remit the amount
14 of such tax to the Department when filing such return.
15 If experience indicates such action to be practicable,
16 the Department may prescribe and furnish a combination or
17 joint return which will enable servicemen, who are required
18 to file returns hereunder and also under the Service
19 Occupation Tax Act, to furnish all the return information
20 required by both Acts on the one form.
21 Where the serviceman has more than one business
22 registered with the Department under separate registration
23 hereunder, such serviceman shall not file each return that is
24 due as a single return covering all such registered
25 businesses, but shall file separate returns for each such
26 registered business.
27 Beginning January 1, 1990, each month the Department
28 shall pay into the State and Local Tax Reform Fund, a special
29 fund in the State Treasury, the net revenue realized for the
30 preceding month from the 1% tax on sales of food for human
31 consumption which is to be consumed off the premises where it
32 is sold (other than alcoholic beverages, soft drinks and food
33 which has been prepared for immediate consumption) and
34 prescription and nonprescription medicines, drugs, medical
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1 appliances and insulin, urine testing materials, syringes and
2 needles used by diabetics.
3 Beginning January 1, 1990, each month the Department
4 shall pay into the State and Local Sales Tax Reform Fund 20%
5 of the net revenue realized for the preceding month from the
6 6.25% general rate on transfers of tangible personal
7 property, other than tangible personal property which is
8 purchased outside Illinois at retail from a retailer and
9 which is titled or registered by an agency of this State's
10 government.
11 Of the remainder of the moneys received by the Department
12 pursuant to this Act, (a) 1.75% thereof shall be paid into
13 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
14 and on and after July 1, 1989, 3.8% thereof shall be paid
15 into the Build Illinois Fund; provided, however, that if in
16 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
17 as the case may be, of the moneys received by the Department
18 and required to be paid into the Build Illinois Fund pursuant
19 to Section 3 of the Retailers' Occupation Tax Act, Section 9
20 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
21 Section 9 of the Service Occupation Tax Act, such Acts being
22 hereinafter called the "Tax Acts" and such aggregate of 2.2%
23 or 3.8%, as the case may be, of moneys being hereinafter
24 called the "Tax Act Amount", and (2) the amount transferred
25 to the Build Illinois Fund from the State and Local Sales Tax
26 Reform Fund shall be less than the Annual Specified Amount
27 (as defined in Section 3 of the Retailers' Occupation Tax
28 Act), an amount equal to the difference shall be immediately
29 paid into the Build Illinois Fund from other moneys received
30 by the Department pursuant to the Tax Acts; and further
31 provided, that if on the last business day of any month the
32 sum of (1) the Tax Act Amount required to be deposited into
33 the Build Illinois Bond Account in the Build Illinois Fund
34 during such month and (2) the amount transferred during such
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1 month to the Build Illinois Fund from the State and Local
2 Sales Tax Reform Fund shall have been less than 1/12 of the
3 Annual Specified Amount, an amount equal to the difference
4 shall be immediately paid into the Build Illinois Fund from
5 other moneys received by the Department pursuant to the Tax
6 Acts; and, further provided, that in no event shall the
7 payments required under the preceding proviso result in
8 aggregate payments into the Build Illinois Fund pursuant to
9 this clause (b) for any fiscal year in excess of the greater
10 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
11 for such fiscal year; and, further provided, that the amounts
12 payable into the Build Illinois Fund under this clause (b)
13 shall be payable only until such time as the aggregate amount
14 on deposit under each trust indenture securing Bonds issued
15 and outstanding pursuant to the Build Illinois Bond Act is
16 sufficient, taking into account any future investment income,
17 to fully provide, in accordance with such indenture, for the
18 defeasance of or the payment of the principal of, premium, if
19 any, and interest on the Bonds secured by such indenture and
20 on any Bonds expected to be issued thereafter and all fees
21 and costs payable with respect thereto, all as certified by
22 the Director of the Bureau of the Budget. If on the last
23 business day of any month in which Bonds are outstanding
24 pursuant to the Build Illinois Bond Act, the aggregate of the
25 moneys deposited in the Build Illinois Bond Account in the
26 Build Illinois Fund in such month shall be less than the
27 amount required to be transferred in such month from the
28 Build Illinois Bond Account to the Build Illinois Bond
29 Retirement and Interest Fund pursuant to Section 13 of the
30 Build Illinois Bond Act, an amount equal to such deficiency
31 shall be immediately paid from other moneys received by the
32 Department pursuant to the Tax Acts to the Build Illinois
33 Fund; provided, however, that any amounts paid to the Build
34 Illinois Fund in any fiscal year pursuant to this sentence
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1 shall be deemed to constitute payments pursuant to clause (b)
2 of the preceding sentence and shall reduce the amount
3 otherwise payable for such fiscal year pursuant to clause (b)
4 of the preceding sentence. The moneys received by the
5 Department pursuant to this Act and required to be deposited
6 into the Build Illinois Fund are subject to the pledge, claim
7 and charge set forth in Section 12 of the Build Illinois Bond
8 Act.
9 Subject to payment of amounts into the Build Illinois
10 Fund as provided in the preceding paragraph or in any
11 amendment thereto hereafter enacted, the following specified
12 monthly installment of the amount requested in the
13 certificate of the Chairman of the Metropolitan Pier and
14 Exposition Authority provided under Section 8.25f of the
15 State Finance Act, but not in excess of the sums designated
16 as "Total Deposit", shall be deposited in the aggregate from
17 collections under Section 9 of the Use Tax Act, Section 9 of
18 the Service Use Tax Act, Section 9 of the Service Occupation
19 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
20 into the McCormick Place Expansion Project Fund in the
21 specified fiscal years.
22 Fiscal Year Total Deposit
23 1993 $0
24 1994 53,000,000
25 1995 58,000,000
26 1996 61,000,000
27 1997 64,000,000
28 1998 68,000,000
29 1999 71,000,000
30 2000 75,000,000
31 2001 80,000,000
32 2002 84,000,000
33 2003 89,000,000
34 2004 93,000,000
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1 2005 97,000,000
2 2006 102,000,000
3 2007 and 106,000,000
4 each fiscal year
5 thereafter that bonds
6 are outstanding under
7 Section 13.2 of the
8 Metropolitan Pier and
9 Exposition Authority Act,
10 but not after fiscal year 2029.
11 Beginning July 20, 1993 and in each month of each fiscal
12 year thereafter, one-eighth of the amount requested in the
13 certificate of the Chairman of the Metropolitan Pier and
14 Exposition Authority for that fiscal year, less the amount
15 deposited into the McCormick Place Expansion Project Fund by
16 the State Treasurer in the respective month under subsection
17 (g) of Section 13 of the Metropolitan Pier and Exposition
18 Authority Act, plus cumulative deficiencies in the deposits
19 required under this Section for previous months and years,
20 shall be deposited into the McCormick Place Expansion Project
21 Fund, until the full amount requested for the fiscal year,
22 but not in excess of the amount specified above as "Total
23 Deposit", has been deposited.
24 Subject to payment of amounts into the Build Illinois
25 Fund and the McCormick Place Expansion Project Fund pursuant
26 to the preceding paragraphs or in any amendment thereto
27 hereafter enacted, each month the Department shall pay into
28 the Local Government Distributive Fund 0.4% of the net
29 revenue realized for the preceding month from the 5% general
30 rate or 0.4% of 80% of the net revenue realized for the
31 preceding month from the 6.25% general rate, as the case may
32 be, on the selling price of tangible personal property which
33 amount shall, subject to appropriation, be distributed as
34 provided in Section 2 of the State Revenue Sharing Act. No
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1 payments or distributions pursuant to this paragraph shall be
2 made if the tax imposed by this Act on photo processing
3 products is declared unconstitutional, or if the proceeds
4 from such tax are unavailable for distribution because of
5 litigation.
6 Subject to payment of amounts into the Build Illinois
7 Fund, the McCormick Place Expansion Project Fund, and the
8 Local Government Distributive Fund pursuant to the preceding
9 paragraphs or in any amendments thereto hereafter enacted,
10 beginning July 1, 1993, the Department shall each month pay
11 into the Illinois Tax Increment Fund 0.27% of 80% of the net
12 revenue realized for the preceding month from the 6.25%
13 general rate on the selling price of tangible personal
14 property.
15 All remaining moneys received by the Department pursuant
16 to this Act shall be paid into the General Revenue Fund of
17 the State Treasury.
18 As soon as possible after the first day of each month,
19 upon certification of the Department of Revenue, the
20 Comptroller shall order transferred and the Treasurer shall
21 transfer from the General Revenue Fund to the Motor Fuel Tax
22 Fund an amount equal to 1.7% of 80% of the net revenue
23 realized under this Act for the second preceding month;
24 except that this transfer shall not be made for the months
25 February through June, 1992.
26 Net revenue realized for a month shall be the revenue
27 collected by the State pursuant to this Act, less the amount
28 paid out during that month as refunds to taxpayers for
29 overpayment of liability.
30 (Source: P.A. 89-379, eff. 1-1-96; 90-612, eff. 7-8-98.)
31 (35 ILCS 110/10) (from Ch. 120, par. 439.40)
32 Sec. 10. Where property is acquired as an incident to the
33 purchase of a service from a serviceman for use in this State
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1 by a purchaser who did not pay the tax herein imposed to the
2 serviceman, and who does not file returns with the Department
3 as a serviceman under Section 9 of this Act, such purchaser
4 (by the last day of the month following the calendar month in
5 which such purchaser makes any payment upon the selling price
6 of such property) shall, except as hereinafter provided in
7 this Section, file a return with the Department and pay the
8 tax upon that portion of the selling price so paid by the
9 purchaser during the preceding calendar month. Such return
10 shall be filed on a form prescribed by the Department and
11 shall contain such information as the Department may
12 reasonably require.
13 When a purchaser pays a tax herein imposed directly to
14 the Department, the Department (upon request therefor from
15 such purchaser) shall issue an appropriate receipt to such
16 purchaser showing that he has paid such tax to the
17 Department. Such receipt shall be sufficient to relieve the
18 purchaser from further liability from the tax to which such
19 receipt may refer.
20 A user who is liable to pay Service Use Tax directly to
21 the Department only occasionally and not on a frequently
22 recurring basis, and who is not required to file returns
23 within the Department as a serviceman under Section 9 of this
24 Act, or as a serviceman under the "Service Occupation Tax
25 Act", or as a retailer or user under the "Use Tax Act", or as
26 a retailer under the "Retailers' Occupation Tax Act", need
27 not register with the Department. However, if such a user has
28 a frequently recurring direct Service Use Tax liability to
29 pay to the Department, such user shall be required to
30 register with the Department on forms prescribed by the
31 Department and to obtain and display a certificate of
32 registration from the Department. In that event, all of the
33 provisions of Section 9 of this Act concerning the filing of
34 regular monthly, quarterly or annual tax returns and all of
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1 the provisions of Section 2a of the "Retailers' Occupation
2 Tax Act" concerning the requirements for registrants to post
3 bond or other security with the Department, as the provisions
4 of such sections now exist or may hereafter be amended, shall
5 apply to such users to the same extent as if such provisions
6 were included herein.
7 (Source: P.A. 85-1135.)
8 (35 ILCS 110/15) (from Ch. 120, par. 439.45)
9 Sec. 15. When the amount due is under $300, any person
10 subject to the provisions hereof who fails to file a return,
11 or who violates any other provision of Section 9 or Section
12 10 hereof, or who fails to keep books and records as required
13 herein, or who files a fraudulent return, or who wilfully
14 violates any Rule or Regulation of the Department for the
15 administration and enforcement of the provisions hereof, or
16 any officer or agent of a corporation, or manager, member, or
17 agent of a limited liability company, subject hereto who
18 signs a fraudulent return filed on behalf of such corporation
19 or limited liability company, or any accountant or other
20 agent who knowingly enters false information on the return of
21 any taxpayer under this Act, or any person who violates any
22 of the provisions of Sections 3 and 5 hereof, or any
23 purchaser who obtains a registration number or resale number
24 from the Department through misrepresentation, or who
25 represents to a seller that such purchaser has a registration
26 number or a resale number from the Department when he knows
27 that he does not, or who uses his registration number or
28 resale number to make a seller believe that he is buying
29 tangible personal property for resale when such purchaser in
30 fact knows that this is not the case, is guilty of a Class 4
31 felony.
32 Any person who violates any provision of Section 6
33 hereof, or who engages in the business of making sales of
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1 service after his Certificate of Registration under this Act
2 has been revoked in accordance with Section 12 of this Act,
3 is guilty of a Class 4 felony. Each day any such person is
4 engaged in business in violation of Section 6, or after his
5 Certificate of Registration under this Act has been revoked,
6 constitutes a separate offense.
7 When the amount due is under $300, any person who accepts
8 money that is due to the Department under this Act from a
9 taxpayer for the purpose of acting as the taxpayer's agent to
10 make the payment to the Department, but who fails to remit
11 such payment to the Department when due is guilty of a Class
12 4 felony. Any such person who purports to make such payment
13 by issuing or delivering a check or other order upon a real
14 or fictitious depository for the payment of money, knowing
15 that it will not be paid by the depository, shall be guilty
16 of a deceptive practice in violation of Section 17-1 of the
17 Criminal Code of 1961, as amended.
18 When the amount due is $300 or more, any person subject
19 to the provisions hereof who fails to file a return, or who
20 violates any other provision of Section 9 or Section 10
21 hereof, or who fails to keep books and records as required
22 herein or who files a fraudulent return, or who willfully
23 violates any rule or regulation of the Department for the
24 administration and enforcement of the provisions hereof, or
25 any officer or agent of a corporation, or manager, member, or
26 agent of a limited liability company, subject hereto who
27 signs a fraudulent return filed on behalf of such corporation
28 or limited liability company, or any accountant or other
29 agent who knowingly enters false information on the return of
30 any taxpayer under this Act, or any person who violates any
31 of the provisions of Sections 3 and 5 hereof, or any
32 purchaser who obtains a registration number or resale number
33 from the Department through misrepresentation, or who
34 represents to a seller that such purchaser has a registration
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1 number or a resale number from the Department when he knows
2 that he does not, or who uses his registration number or
3 resale number to make a seller believe that he is buying
4 tangible personal property for resale when such purchaser in
5 fact knows that this is not the case, is guilty of a Class 3
6 felony.
7 When the amount due is $300 or more, any person who
8 accepts money that is due to the Department under this Act
9 from a taxpayer for the purpose of acting as the taxpayer's
10 agent to make the payment to the Department, but who fails to
11 remit such payment to the Department when due is guilty of a
12 Class 3 felony. Any such person who purports to make such
13 payment by issuing or delivering a check or other order upon
14 a real or fictitious depository for the payment of money,
15 knowing that it will not be paid by the depository, shall be
16 guilty of a deceptive practice in violation of Section 17-1
17 of the Criminal Code of 1961, as amended.
18 Any serviceman who collects or attempts to collect
19 Service Use Tax measured by receipts or selling prices which
20 such serviceman knows are not subject to Service Use Tax, or
21 any serviceman who knowingly over-collects or attempts to
22 over-collect Service Use Tax in a transaction which is
23 subject to the tax that is imposed by this Act, shall be
24 guilty of a Class 4 felony for each offense. This paragraph
25 does not apply to an amount collected by the serviceman as
26 Service Use Tax on receipts or selling prices which are
27 subject to tax under this Act as long as such collection is
28 made in compliance with the tax collection brackets
29 prescribed by the Department in its Rules and Regulations.
30 Any taxpayer or agent of a taxpayer who with the intent
31 to defraud purports to make a payment due to the Department
32 by issuing or delivering a check or other order upon a real
33 or fictitious depository for the payment of money, knowing
34 that it will not be paid by the depository, shall be guilty
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1 of a deceptive practice in violation of Section 17-1 of the
2 Criminal Code of 1961, as amended.
3 A prosecution for any Act in violation of this Section
4 may be commenced at any time within 3 years of the commission
5 of that Act.
6 This Section does not apply if the violation in a
7 particular case also constitutes a criminal violation of the
8 Retailers' Occupation Tax Act, the Use Tax Act or the Service
9 Occupation Tax Act.
10 (Source: P.A. 90-655, eff. 7-30-98.)
11 Section 125. The Service Occupation Tax Act is amended
12 by re-enacting Sections 2, 3, 3-5, 3-10, 3-15, 3-20, 3-25,
13 3-30, 3-35, 3-40, 3-45, 3-50, 9, 13, and 15 as follows:
14 (35 ILCS 115/2) (from Ch. 120, par. 439.102)
15 Sec. 2. "Transfer" means any transfer of the title to
16 property or of the ownership of property whether or not the
17 transferor retains title as security for the payment of
18 amounts due him from the transferee.
19 "Cost Price" means the consideration paid by the
20 serviceman for a purchase valued in money, whether paid in
21 money or otherwise, including cash, credits and services, and
22 shall be determined without any deduction on account of the
23 supplier's cost of the property sold or on account of any
24 other expense incurred by the supplier. When a serviceman
25 contracts out part or all of the services required in his
26 sale of service, it shall be presumed that the cost price to
27 the serviceman of the property transferred to him by his or
28 her subcontractor is equal to 50% of the subcontractor's
29 charges to the serviceman in the absence of proof of the
30 consideration paid by the subcontractor for the purchase of
31 such property.
32 "Department" means the Department of Revenue.
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1 "Person" means any natural individual, firm, partnership,
2 association, joint stock company, joint venture, public or
3 private corporation, limited liability company, and any
4 receiver, executor, trustee, guardian or other representative
5 appointed by order of any court.
6 "Sale of Service" means any transaction except:
7 (a) A retail sale of tangible personal property taxable
8 under the Retailers' Occupation Tax Act or under the Use Tax
9 Act.
10 (b) A sale of tangible personal property for the purpose
11 of resale made in compliance with Section 2c of the
12 Retailers' Occupation Tax Act.
13 (c) Except as hereinafter provided, a sale or transfer
14 of tangible personal property as an incident to the rendering
15 of service for or by any governmental body or for or by any
16 corporation, society, association, foundation or institution
17 organized and operated exclusively for charitable, religious
18 or educational purposes or any not-for-profit corporation,
19 society, association, foundation, institution or organization
20 which has no compensated officers or employees and which is
21 organized and operated primarily for the recreation of
22 persons 55 years of age or older. A limited liability company
23 may qualify for the exemption under this paragraph only if
24 the limited liability company is organized and operated
25 exclusively for educational purposes.
26 (d) A sale or transfer of tangible personal property as
27 an incident to the rendering of service for interstate
28 carriers for hire for use as rolling stock moving in
29 interstate commerce or lessors under leases of one year or
30 longer, executed or in effect at the time of purchase, to
31 interstate carriers for hire for use as rolling stock moving
32 in interstate commerce, and equipment operated by a
33 telecommunications provider, licensed as a common carrier by
34 the Federal Communications Commission, which is permanently
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1 installed in or affixed to aircraft moving in interstate
2 commerce.
3 (d-1) A sale or transfer of tangible personal property
4 as an incident to the rendering of service for owners,
5 lessors or shippers of tangible personal property which is
6 utilized by interstate carriers for hire for use as rolling
7 stock moving in interstate commerce, and equipment operated
8 by a telecommunications provider, licensed as a common
9 carrier by the Federal Communications Commission, which is
10 permanently installed in or affixed to aircraft moving in
11 interstate commerce.
12 (d-2) The repairing, reconditioning or remodeling, for a
13 common carrier by rail, of tangible personal property which
14 belongs to such carrier for hire, and as to which such
15 carrier receives the physical possession of the repaired,
16 reconditioned or remodeled item of tangible personal property
17 in Illinois, and which such carrier transports, or shares
18 with another common carrier in the transportation of such
19 property, out of Illinois on a standard uniform bill of
20 lading showing the person who repaired, reconditioned or
21 remodeled the property as the shipper or consignor of such
22 property to a destination outside Illinois, for use outside
23 Illinois.
24 (d-3) A sale or transfer of tangible personal property
25 which is produced by the seller thereof on special order in
26 such a way as to have made the applicable tax the Service
27 Occupation Tax or the Service Use Tax, rather than the
28 Retailers' Occupation Tax or the Use Tax, for an interstate
29 carrier by rail which receives the physical possession of
30 such property in Illinois, and which transports such
31 property, or shares with another common carrier in the
32 transportation of such property, out of Illinois on a
33 standard uniform bill of lading showing the seller of the
34 property as the shipper or consignor of such property to a
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1 destination outside Illinois, for use outside Illinois.
2 (d-4) Until January 1, 1997, a sale, by a registered
3 serviceman paying tax under this Act to the Department, of
4 special order printed materials delivered outside Illinois
5 and which are not returned to this State, if delivery is made
6 by the seller or agent of the seller, including an agent who
7 causes the product to be delivered outside Illinois by a
8 common carrier or the U.S. postal service.
9 (e) A sale or transfer of machinery and equipment used
10 primarily in the process of the manufacturing or assembling,
11 either in an existing, an expanded or a new manufacturing
12 facility, of tangible personal property for wholesale or
13 retail sale or lease, whether such sale or lease is made
14 directly by the manufacturer or by some other person, whether
15 the materials used in the process are owned by the
16 manufacturer or some other person, or whether such sale or
17 lease is made apart from or as an incident to the seller's
18 engaging in a service occupation and the applicable tax is a
19 Service Occupation Tax or Service Use Tax, rather than
20 Retailers' Occupation Tax or Use Tax.
21 (f) The sale or transfer of distillation machinery and
22 equipment, sold as a unit or kit and assembled or installed
23 by the retailer, which machinery and equipment is certified
24 by the user to be used only for the production of ethyl
25 alcohol that will be used for consumption as motor fuel or as
26 a component of motor fuel for the personal use of such user
27 and not subject to sale or resale.
28 (g) At the election of any serviceman not required to be
29 otherwise registered as a retailer under Section 2a of the
30 Retailers' Occupation Tax Act, made for each fiscal year
31 sales of service in which the aggregate annual cost price of
32 tangible personal property transferred as an incident to the
33 sales of service is less than 35% (75% in the case of
34 servicemen transferring prescription drugs or servicemen
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1 engaged in graphic arts production) of the aggregate annual
2 total gross receipts from all sales of service. The purchase
3 of such tangible personal property by the serviceman shall be
4 subject to tax under the Retailers' Occupation Tax Act and
5 the Use Tax Act. However, if a primary serviceman who has
6 made the election described in this paragraph subcontracts
7 service work to a secondary serviceman who has also made the
8 election described in this paragraph, the primary serviceman
9 does not incur a Use Tax liability if the secondary
10 serviceman (i) has paid or will pay Use Tax on his or her
11 cost price of any tangible personal property transferred to
12 the primary serviceman and (ii) certifies that fact in
13 writing to the primary serviceman.
14 Tangible personal property transferred incident to the
15 completion of a maintenance agreement is exempt from the tax
16 imposed pursuant to this Act.
17 Exemption (e) also includes machinery and equipment used
18 in the general maintenance or repair of such exempt machinery
19 and equipment or for in-house manufacture of exempt machinery
20 and equipment. For the purposes of exemption (e), each of
21 these terms shall have the following meanings: (1)
22 "manufacturing process" shall mean the production of any
23 article of tangible personal property, whether such article
24 is a finished product or an article for use in the process of
25 manufacturing or assembling a different article of tangible
26 personal property, by procedures commonly regarded as
27 manufacturing, processing, fabricating, or refining which
28 changes some existing material or materials into a material
29 with a different form, use or name. In relation to a
30 recognized integrated business composed of a series of
31 operations which collectively constitute manufacturing, or
32 individually constitute manufacturing operations, the
33 manufacturing process shall be deemed to commence with the
34 first operation or stage of production in the series, and
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1 shall not be deemed to end until the completion of the final
2 product in the last operation or stage of production in the
3 series; and further for purposes of exemption (e),
4 photoprocessing is deemed to be a manufacturing process of
5 tangible personal property for wholesale or retail sale; (2)
6 "assembling process" shall mean the production of any article
7 of tangible personal property, whether such article is a
8 finished product or an article for use in the process of
9 manufacturing or assembling a different article of tangible
10 personal property, by the combination of existing materials
11 in a manner commonly regarded as assembling which results in
12 a material of a different form, use or name; (3) "machinery"
13 shall mean major mechanical machines or major components of
14 such machines contributing to a manufacturing or assembling
15 process; and (4) "equipment" shall include any independent
16 device or tool separate from any machinery but essential to
17 an integrated manufacturing or assembly process; including
18 computers used primarily in operating exempt machinery and
19 equipment in a computer assisted design, computer assisted
20 manufacturing (CAD/CAM) system; or any subunit or assembly
21 comprising a component of any machinery or auxiliary, adjunct
22 or attachment parts of machinery, such as tools, dies, jigs,
23 fixtures, patterns and molds; or any parts which require
24 periodic replacement in the course of normal operation; but
25 shall not include hand tools. The purchaser of such machinery
26 and equipment who has an active resale registration number
27 shall furnish such number to the seller at the time of
28 purchase. The purchaser of such machinery and equipment and
29 tools without an active resale registration number shall
30 furnish to the seller a certificate of exemption for each
31 transaction stating facts establishing the exemption for that
32 transaction, which certificate shall be available to the
33 Department for inspection or audit.
34 The rolling stock exemption applies to rolling stock used
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1 by an interstate carrier for hire, even just between points
2 in Illinois, if such rolling stock transports, for hire,
3 persons whose journeys or property whose shipments originate
4 or terminate outside Illinois.
5 Any informal rulings, opinions or letters issued by the
6 Department in response to an inquiry or request for any
7 opinion from any person regarding the coverage and
8 applicability of exemption (e) to specific devices shall be
9 published, maintained as a public record, and made available
10 for public inspection and copying. If the informal ruling,
11 opinion or letter contains trade secrets or other
12 confidential information, where possible the Department shall
13 delete such information prior to publication. Whenever such
14 informal rulings, opinions, or letters contain any policy of
15 general applicability, the Department shall formulate and
16 adopt such policy as a rule in accordance with the provisions
17 of the Illinois Administrative Procedure Act.
18 On and after July 1, 1987, no entity otherwise eligible
19 under exemption (c) of this Section shall make tax free
20 purchases unless it has an active exemption identification
21 number issued by the Department.
22 "Serviceman" means any person who is engaged in the
23 occupation of making sales of service.
24 "Sale at Retail" means "sale at retail" as defined in the
25 Retailers' Occupation Tax Act.
26 "Supplier" means any person who makes sales of tangible
27 personal property to servicemen for the purpose of resale as
28 an incident to a sale of service.
29 (Source: P.A. 88-480; 88-505; 88-526; 88-547; 88-670, eff.
30 12-2-94; 89-675, eff. 8-14-96.)
31 (35 ILCS 115/3) (from Ch. 120, par. 439.103)
32 Sec. 3. Tax imposed. A tax is imposed upon all persons
33 engaged in the business of making sales of service ( referred
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1 to as "servicemen") on all tangible personal property
2 transferred as an incident of a sale of service, including
3 computer software, and including photographs, negatives, and
4 positives that are the product of photoprocessing, but not
5 including products of photoprocessing produced for use in
6 motion pictures for public commercial exhibition.
7 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
8 86-1028; 86-1475.)
9 (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
10 Sec. 3-5. Exemptions. The following tangible personal
11 property is exempt from the tax imposed by this Act:
12 (1) Personal property sold by a corporation, society,
13 association, foundation, institution, or organization, other
14 than a limited liability company, that is organized and
15 operated as a not-for-profit service enterprise for the
16 benefit of persons 65 years of age or older if the personal
17 property was not purchased by the enterprise for the purpose
18 of resale by the enterprise.
19 (2) Personal property purchased by a not-for-profit
20 Illinois county fair association for use in conducting,
21 operating, or promoting the county fair.
22 (3) Personal property purchased by any 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
26 Internal Revenue Code and that is organized and operated for
27 the 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.
33 (5) Graphic arts machinery and equipment, including
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1 repair and replacement parts, both new and used, and
2 including that manufactured on special order or purchased for
3 lease, certified by the purchaser to be used primarily for
4 graphic arts production.
5 (6) Personal property sold by a teacher-sponsored
6 student organization affiliated with an elementary or
7 secondary school located in Illinois.
8 (7) Farm machinery and equipment, both new and used,
9 including that manufactured on special order, certified by
10 the purchaser to be used primarily for production agriculture
11 or State or federal agricultural programs, including
12 individual replacement parts for the machinery and equipment,
13 including machinery and equipment purchased for lease, and
14 including implements of husbandry defined in Section 1-130 of
15 the Illinois Vehicle Code, farm machinery and agricultural
16 chemical and fertilizer spreaders, and nurse wagons required
17 to be registered under Section 3-809 of the Illinois Vehicle
18 Code, but excluding other motor vehicles required to be
19 registered under the Illinois Vehicle Code. Horticultural
20 polyhouses or hoop houses used for propagating, growing, or
21 overwintering plants shall be considered farm machinery and
22 equipment under this item (7). Agricultural chemical tender
23 tanks and dry boxes shall include units sold separately from
24 a motor vehicle required to be licensed and units sold
25 mounted on a motor vehicle required to be licensed if the
26 selling price of the tender is separately stated.
27 Farm machinery and equipment shall include precision
28 farming equipment that is installed or purchased to be
29 installed on farm machinery and equipment including, but not
30 limited to, tractors, harvesters, sprayers, planters,
31 seeders, or spreaders. Precision farming equipment includes,
32 but is not limited to, soil testing sensors, computers,
33 monitors, software, global positioning and mapping systems,
34 and other such equipment.
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1 Farm machinery and equipment also includes computers,
2 sensors, software, and related equipment used primarily in
3 the computer-assisted operation of production agriculture
4 facilities, equipment, and activities such as, but not
5 limited to, the collection, monitoring, and correlation of
6 animal and crop data for the purpose of formulating animal
7 diets and agricultural chemicals. This item (7) is exempt
8 from the provisions of Section 3-75.
9 (8) Fuel and petroleum products sold to or used by an
10 air common carrier, certified by the carrier to be used for
11 consumption, shipment, or storage in the conduct of its
12 business as an air common carrier, for a flight destined for
13 or returning from a location or locations outside the United
14 States without regard to previous or subsequent domestic
15 stopovers.
16 (9) Proceeds of mandatory service charges separately
17 stated on customers' bills for the purchase and consumption
18 of food and beverages, to the extent that the proceeds of the
19 service charge are in fact turned over as tips or as a
20 substitute for tips to the employees who participate directly
21 in preparing, serving, hosting or cleaning up the food or
22 beverage function with respect to which the service charge is
23 imposed.
24 (10) Oil field exploration, drilling, and production
25 equipment, including (i) rigs and parts of rigs, rotary rigs,
26 cable tool rigs, and workover rigs, (ii) pipe and tubular
27 goods, including casing and drill strings, (iii) pumps and
28 pump-jack units, (iv) storage tanks and flow lines, (v) any
29 individual replacement part for oil field exploration,
30 drilling, and production equipment, and (vi) machinery and
31 equipment purchased for lease; but excluding motor vehicles
32 required to be registered under the Illinois Vehicle Code.
33 (11) Photoprocessing machinery and equipment, including
34 repair and replacement parts, both new and used, including
SB144 Engrossed -97- LRB9101598PTpk
1 that manufactured on special order, certified by the
2 purchaser to be used primarily for photoprocessing, and
3 including photoprocessing machinery and equipment purchased
4 for lease.
5 (12) Coal exploration, mining, offhighway hauling,
6 processing, maintenance, and reclamation equipment, including
7 replacement parts and equipment, and including equipment
8 purchased for lease, but excluding motor vehicles required to
9 be registered under the Illinois Vehicle Code.
10 (13) Food for human consumption that is to be consumed
11 off the premises where it is sold (other than alcoholic
12 beverages, soft drinks and food that has been prepared for
13 immediate consumption) and prescription and non-prescription
14 medicines, drugs, medical appliances, and insulin, urine
15 testing materials, syringes, and needles used by diabetics,
16 for human use, when purchased for use by a person receiving
17 medical assistance under Article 5 of the Illinois Public Aid
18 Code who resides in a licensed long-term care facility, as
19 defined in the Nursing Home Care Act.
20 (14) Semen used for artificial insemination of livestock
21 for direct agricultural production.
22 (15) Horses, or interests in horses, registered with and
23 meeting the requirements of any of the Arabian Horse Club
24 Registry of America, Appaloosa Horse Club, American Quarter
25 Horse Association, United States Trotting Association, or
26 Jockey Club, as appropriate, used for purposes of breeding or
27 racing for prizes.
28 (16) Computers and communications equipment utilized for
29 any hospital purpose and equipment used in the diagnosis,
30 analysis, or treatment of hospital patients sold to a lessor
31 who leases the equipment, under a lease of one year or longer
32 executed or in effect at the time of the purchase, to a
33 hospital that has been issued an active tax exemption
34 identification number by the Department under Section 1g of
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1 the Retailers' Occupation Tax Act.
2 (17) Personal property sold to a lessor who leases the
3 property, under a lease of one year or longer executed or in
4 effect at the time of the purchase, to a governmental body
5 that has been issued an active tax exemption identification
6 number by the Department under Section 1g of the Retailers'
7 Occupation Tax Act.
8 (18) 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 (19) 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 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
32 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
33 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
34 eff. 12-12-97; 90-605, eff. 6-30-98.)
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1 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
2 Sec. 3-10. Rate of tax. Unless otherwise provided in
3 this Section, the tax imposed by this Act is at the rate of
4 6.25% of the "selling price", as defined in Section 2 of the
5 Service Use Tax Act, of the tangible personal property. For
6 the purpose of computing this tax, in no event shall the
7 "selling price" be less than the cost price to the serviceman
8 of the tangible personal property transferred. The selling
9 price of each item of tangible personal property transferred
10 as an incident of a sale of service may be shown as a
11 distinct and separate item on the serviceman's billing to the
12 service customer. If the selling price is not so shown, the
13 selling price of the tangible personal property is deemed to
14 be 50% of the serviceman's entire billing to the service
15 customer. When, however, a serviceman contracts to design,
16 develop, and produce special order machinery or equipment,
17 the tax imposed by this Act shall be based on the
18 serviceman's cost price of the tangible personal property
19 transferred incident to the completion of the contract.
20 With respect to gasohol, as defined in the Use Tax Act,
21 the tax imposed by this Act shall apply to 70% of the cost
22 price of property transferred as an incident to the sale of
23 service on or after January 1, 1990, and before July 1, 2003,
24 and to 100% of the cost price thereafter.
25 At the election of any registered serviceman made for
26 each fiscal year, sales of service in which the aggregate
27 annual cost price of tangible personal property transferred
28 as an incident to the sales of service is less than 35%, or
29 75% in the case of servicemen transferring prescription drugs
30 or servicemen engaged in graphic arts production, of the
31 aggregate annual total gross receipts from all sales of
32 service, the tax imposed by this Act shall be based on the
33 serviceman's cost price of the tangible personal property
34 transferred incident to the sale of those services.
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1 The tax shall be imposed at the rate of 1% on food
2 prepared for immediate consumption and transferred incident
3 to a sale of service subject to this Act or the Service
4 Occupation Tax Act by an entity licensed under the Hospital
5 Licensing Act or the Nursing Home Care Act. The tax shall
6 also be imposed at the rate of 1% on food for human
7 consumption that is to be consumed off the premises where it
8 is sold (other than alcoholic beverages, soft drinks, and
9 food that has been prepared for immediate consumption and is
10 not otherwise included in this paragraph) and prescription
11 and nonprescription medicines, drugs, medical appliances,
12 modifications to a motor vehicle for the purpose of rendering
13 it usable by a disabled person, and insulin, urine testing
14 materials, syringes, and needles used by diabetics, for human
15 use. For the purposes of this Section, the term "soft
16 drinks" means any complete, finished, ready-to-use,
17 non-alcoholic drink, whether carbonated or not, including but
18 not limited to soda water, cola, fruit juice, vegetable
19 juice, carbonated water, and all other preparations commonly
20 known as soft drinks of whatever kind or description that are
21 contained in any closed or sealed can, carton, or container,
22 regardless of size. "Soft drinks" does not include coffee,
23 tea, non-carbonated water, infant formula, milk or milk
24 products as defined in the Grade A Pasteurized Milk and Milk
25 Products Act, or drinks containing 50% or more natural fruit
26 or vegetable juice.
27 Notwithstanding any other provisions of this Act, "food
28 for human consumption that is to be consumed off the premises
29 where it is sold" includes all food sold through a vending
30 machine, except soft drinks and food products that are
31 dispensed hot from a vending machine, regardless of the
32 location of the vending machine.
33 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
34 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
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1 6-30-98; 90-606, eff. 6-30-98.)
2 (35 ILCS 115/3-15) (from Ch. 120, par. 439.103-15)
3 Sec. 3-15. Photoprocessing. For purposes of the tax
4 imposed on photographs, negatives, and positives by this Act,
5 "photoprocessing" includes, but is not limited to, developing
6 films, positives, and negatives, and transparencies, and
7 tinting, coloring, making, and enlarging prints.
8 Photoprocessing does not include color separation,
9 typesetting, and platemaking by photographic means in the
10 graphic arts industry and does not include any procedure,
11 process, or activity connected with the creation of the
12 images on the film from which the negatives, positives, or
13 photographs are derived. The charge for in-house
14 photoprocessing may not be less than the photoprocessor's
15 cost price of materials. In transactions in which products
16 of photoprocessing are sold in conjunction with other
17 services, if a charge for the photoprocessing component is
18 not separately stated, tax is imposed on 50% of the entire
19 selling price unless the sale is made by a professional
20 photographer, in which case tax is imposed on 10% of the
21 entire selling price.
22 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
23 86-1028; 86-1475.)
24 (35 ILCS 115/3-20) (from Ch. 120, par. 439.103-20)
25 Sec. 3-20. Bullion. For purposes of the exemption
26 pertaining to bullion, "bullion" means gold, silver, or
27 platinum in a bulk state with a purity of not less than 980
28 parts per 1,000.
29 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
30 86-1028; 86-1475.)
31 (35 ILCS 115/3-25) (from Ch. 120, par. 439.103-25)
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1 Sec. 3-25. Computer software. For the purposes of this
2 Act, "computer software" means a set of statements, data, or
3 instructions to be used directly or indirectly in a computer
4 in order to bring about a certain result in any form in which
5 those statements, data, or instructions may be embodied,
6 transmitted, or fixed, by any method now known or hereafter
7 developed, regardless of whether the statements, data, or
8 instructions are capable of being perceived by or
9 communicated to humans, and includes prewritten or canned
10 software that is held for repeated sale or lease, and all
11 associated documentation and materials, if any, whether
12 contained on magnetic tapes, discs, cards, or other devices
13 or media, but does not include software that is adapted to
14 specific individualized requirements of a purchaser,
15 custom-made and modified software designed for a particular
16 or limited use by a purchaser, or software used to operate
17 exempt machinery and equipment used in the process of
18 manufacturing or assembling tangible personal property for
19 wholesale or retail sale or lease.
20 For the purposes of this Act, computer software shall be
21 considered to be tangible personal property.
22 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
23 86-1028; 86-1475.)
24 (35 ILCS 115/3-30) (from Ch. 120, par. 439.103-30)
25 Sec. 3-30. Graphic arts production. For purposes of this
26 Act, "graphic arts production" means printing by one or more
27 of the common processes or graphic arts production services
28 as those processes and services are defined in Major Group 27
29 of the U.S. Standard Industrial Classification Manual.
30 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
31 86-1028; 86-1475.)
32 (35 ILCS 115/3-35) (from Ch. 120, par. 439.103-35)
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1 Sec. 3-35. Production agriculture. For purposes of this
2 Act, "production agriculture" means the raising of or the
3 propagation of livestock; crops for sale for human
4 consumption; crops for livestock consumption; and production
5 seed stock grown for the propagation of feed grains and the
6 husbandry of animals or for the purpose of providing a food
7 product, including the husbandry of blood stock as a main
8 source of providing a food product. "Production agriculture"
9 also means animal husbandry, floriculture, aquaculture,
10 horticulture, and viticulture.
11 (Source: P.A. 89-220, eff. 1-1-96.)
12 (35 ILCS 115/3-40) (from Ch. 120, par. 439.103-40)
13 Sec. 3-40. Collection. The tax imposed by this Act
14 shall be paid to the Department by any serviceman
15 transferring tangible personal property as an incident to a
16 sale of service taxable under this Act. If a serviceman has
17 paid Service Occupation Tax to his or her supplier based upon
18 the cost price of tangible personal property before January
19 1, 1990, or in error on or after January 1, 1990, the
20 serviceman, without filing any formal claims with the
21 Department, shall be allowed to take credit against his or
22 her Service Occupation Tax liability based upon the selling
23 price of that property transferred in the course of providing
24 service to the extent of the amount of the tax so paid.
25 If any serviceman collects an amount (however designated)
26 that purports to reimburse the serviceman for Service
27 Occupation Tax liability measured by receipts or selling
28 prices that are not subject to Service Occupation Tax, or if
29 any serviceman, in collecting an amount (however designated)
30 that purports to reimburse the serviceman for Service
31 Occupation Tax liability measured by receipts or selling
32 prices that are subject to tax under this Act, collects more
33 from the purchaser than the serviceman's Service Occupation
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1 Tax liability in the transaction, the purchaser shall have a
2 legal right to claim a refund of that amount from the
3 serviceman. If, however, that amount is not refunded to the
4 purchaser by a serviceman for any reason, the supplier or
5 serviceman is liable to pay that amount to the Department.
6 This paragraph does not apply to an amount collected by the
7 supplier as Service Occupation Tax, nor to an amount
8 collected by the serviceman as reimbursement for the
9 serviceman's Service Occupation Tax liability on receipts or
10 cost prices that are subject to tax under this Act, as long
11 as the collection is made in compliance with the tax
12 collection brackets prescribed by the Department in its rules
13 and regulations.
14 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
15 86-1028; 86-1475.)
16 (35 ILCS 115/3-45) (from Ch. 120, par. 439.103-45)
17 Sec. 3-45. Interstate commerce exemption. No tax is
18 imposed under this Act upon the privilege of engaging in a
19 business in interstate commerce or otherwise when the
20 business may not, under the Constitution and statutes of the
21 United States, be made the subject of taxation by this State.
22 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
23 86-1028; 86-1475.)
24 (35 ILCS 115/3-50) (from Ch. 120, par. 439.103-50)
25 Sec. 3-50. Liability because of amendatory Act.
26 Revisions in Section 3 (now Sections 3 through 3-50) by
27 Public Act 85-1135 do not affect tax liability that arose
28 before January 1, 1990.
29 (Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
30 86-1028; 86-1475.)
31 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
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1 Sec. 9. Each serviceman required or authorized to
2 collect the tax herein imposed shall pay to the Department
3 the amount of such tax at the time when he is required to
4 file his return for the period during which such tax was
5 collectible, less a discount of 2.1% prior to January 1,
6 1990, and 1.75% on and after January 1, 1990, or $5 per
7 calendar year, whichever is greater, which is allowed to
8 reimburse the serviceman for expenses incurred in collecting
9 the tax, keeping records, preparing and filing returns,
10 remitting the tax and supplying data to the Department on
11 request.
12 Where such tangible personal property is sold under a
13 conditional sales contract, or under any other form of sale
14 wherein the payment of the principal sum, or a part thereof,
15 is extended beyond the close of the period for which the
16 return is filed, the serviceman, in collecting the tax may
17 collect, for each tax return period, only the tax applicable
18 to the part of the selling price actually received during
19 such tax return period.
20 Except as provided hereinafter in this Section, on or
21 before the twentieth day of each calendar month, such
22 serviceman shall file a return for the preceding calendar
23 month in accordance with reasonable rules and regulations to
24 be promulgated by the Department of Revenue. Such return
25 shall be filed on a form prescribed by the Department and
26 shall contain such information as the Department may
27 reasonably require.
28 The Department may require returns to be filed on a
29 quarterly basis. If so required, a return for each calendar
30 quarter shall be filed on or before the twentieth day of the
31 calendar month following the end of such calendar quarter.
32 The taxpayer shall also file a return with the Department for
33 each of the first two months of each calendar quarter, on or
34 before the twentieth day of the following calendar month,
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1 stating:
2 1. The name of the seller;
3 2. The address of the principal place of business
4 from which he engages in business as a serviceman in this
5 State;
6 3. The total amount of taxable receipts received by
7 him during the preceding calendar month, including
8 receipts from charge and time sales, but less all
9 deductions allowed by law;
10 4. The amount of credit provided in Section 2d of
11 this Act;
12 5. The amount of tax due;
13 5-5. The signature of the taxpayer; and
14 6. Such other reasonable information as the
15 Department may require.
16 If a taxpayer fails to sign a return within 30 days after
17 the proper notice and demand for signature by the Department,
18 the return shall be considered valid and any amount shown to
19 be due on the return shall be deemed assessed.
20 A serviceman may accept a Manufacturer's Purchase Credit
21 certification from a purchaser in satisfaction of Service Use
22 Tax as provided in Section 3-70 of the Service Use Tax Act if
23 the purchaser provides the appropriate documentation as
24 required by Section 3-70 of the Service Use Tax Act. A
25 Manufacturer's Purchase Credit certification, accepted by a
26 serviceman as provided in Section 3-70 of the Service Use Tax
27 Act, may be used by that serviceman to satisfy Service
28 Occupation Tax liability in the amount claimed in the
29 certification, not to exceed 6.25% of the receipts subject to
30 tax from a qualifying purchase.
31 If the serviceman's average monthly tax liability to the
32 Department does not exceed $200, the Department may authorize
33 his returns to be filed on a quarter annual basis, with the
34 return for January, February and March of a given year being
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1 due by April 20 of such year; with the return for April, May
2 and June of a given year being due by July 20 of such year;
3 with the return for July, August and September of a given
4 year being due by October 20 of such year, and with the
5 return for October, November and December of a given year
6 being due by January 20 of the following year.
7 If the serviceman's average monthly tax liability to the
8 Department does not exceed $50, the Department may authorize
9 his returns to be filed on an annual basis, with the return
10 for a given year being due by January 20 of the following
11 year.
12 Such quarter annual and annual returns, as to form and
13 substance, shall be subject to the same requirements as
14 monthly returns.
15 Notwithstanding any other provision in this Act
16 concerning the time within which a serviceman may file his
17 return, in the case of any serviceman who ceases to engage in
18 a kind of business which makes him responsible for filing
19 returns under this Act, such serviceman shall file a final
20 return under this Act with the Department not more than 1
21 month after discontinuing such business.
22 Beginning October 1, 1993, a taxpayer who has an average
23 monthly tax liability of $150,000 or more shall make all
24 payments required by rules of the Department by electronic
25 funds transfer. Beginning October 1, 1994, a taxpayer who
26 has an average monthly tax liability of $100,000 or more
27 shall make all payments required by rules of the Department
28 by electronic funds transfer. Beginning October 1, 1995, a
29 taxpayer who has an average monthly tax liability of $50,000
30 or more shall make all payments required by rules of the
31 Department by electronic funds transfer. The term "average
32 monthly tax liability" means the sum of the taxpayer's
33 liabilities under this Act, and under all other State and
34 local occupation and use tax laws administered by the
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1 Department, for the immediately preceding calendar year
2 divided by 12.
3 Before August 1 of each year beginning in 1993, the
4 Department shall notify all taxpayers required to make
5 payments by electronic funds transfer. All taxpayers
6 required to make payments by electronic funds transfer shall
7 make those payments for a minimum of one year beginning on
8 October 1.
9 Any taxpayer not required to make payments by electronic
10 funds transfer may make payments by electronic funds transfer
11 with the permission of the Department.
12 All taxpayers required to make payment by electronic
13 funds transfer and any taxpayers authorized to voluntarily
14 make payments by electronic funds transfer shall make those
15 payments in the manner authorized by the Department.
16 The Department shall adopt such rules as are necessary to
17 effectuate a program of electronic funds transfer and the
18 requirements of this Section.
19 Where a serviceman collects the tax with respect to the
20 selling price of tangible personal property which he sells
21 and the purchaser thereafter returns such tangible personal
22 property and the serviceman refunds the selling price thereof
23 to the purchaser, such serviceman shall also refund, to the
24 purchaser, the tax so collected from the purchaser. When
25 filing his return for the period in which he refunds such tax
26 to the purchaser, the serviceman may deduct the amount of the
27 tax so refunded by him to the purchaser from any other
28 Service Occupation Tax, Service Use Tax, Retailers'
29 Occupation Tax or Use Tax which such serviceman may be
30 required to pay or remit to the Department, as shown by such
31 return, provided that the amount of the tax to be deducted
32 shall previously have been remitted to the Department by such
33 serviceman. If the serviceman shall not previously have
34 remitted the amount of such tax to the Department, he shall
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1 be entitled to no deduction hereunder upon refunding such tax
2 to the purchaser.
3 If experience indicates such action to be practicable,
4 the Department may prescribe and furnish a combination or
5 joint return which will enable servicemen, who are required
6 to file returns hereunder and also under the Retailers'
7 Occupation Tax Act, the Use Tax Act or the Service Use Tax
8 Act, to furnish all the return information required by all
9 said Acts on the one form.
10 Where the serviceman has more than one business
11 registered with the Department under separate registrations
12 hereunder, such serviceman shall file separate returns for
13 each registered business.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the Local Government Tax Fund the revenue
16 realized for the preceding month from the 1% tax on sales of
17 food for human consumption which is to be consumed off the
18 premises where it is sold (other than alcoholic beverages,
19 soft drinks and food which has been prepared for immediate
20 consumption) and prescription and nonprescription medicines,
21 drugs, medical appliances and insulin, urine testing
22 materials, syringes and needles used by diabetics.
23 Beginning January 1, 1990, each month the Department
24 shall pay into the County and Mass Transit District Fund 4%
25 of the revenue realized for the preceding month from the
26 6.25% general rate.
27 Beginning January 1, 1990, each month the Department
28 shall pay into the Local Government Tax Fund 16% of the
29 revenue realized for the preceding month from the 6.25%
30 general rate on transfers of tangible personal property.
31 Of the remainder of the moneys received by the Department
32 pursuant to this Act, (a) 1.75% thereof shall be paid into
33 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
34 and on and after July 1, 1989, 3.8% thereof shall be paid
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1 into the Build Illinois Fund; provided, however, that if in
2 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
3 as the case may be, of the moneys received by the Department
4 and required to be paid into the Build Illinois Fund pursuant
5 to Section 3 of the Retailers' Occupation Tax Act, Section 9
6 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
7 Section 9 of the Service Occupation Tax Act, such Acts being
8 hereinafter called the "Tax Acts" and such aggregate of 2.2%
9 or 3.8%, as the case may be, of moneys being hereinafter
10 called the "Tax Act Amount", and (2) the amount transferred
11 to the Build Illinois Fund from the State and Local Sales Tax
12 Reform Fund shall be less than the Annual Specified Amount
13 (as defined in Section 3 of the Retailers' Occupation Tax
14 Act), an amount equal to the difference shall be immediately
15 paid into the Build Illinois Fund from other moneys received
16 by the Department pursuant to the Tax Acts; and further
17 provided, that if on the last business day of any month the
18 sum of (1) the Tax Act Amount required to be deposited into
19 the Build Illinois Account in the Build Illinois Fund during
20 such month and (2) the amount transferred during such month
21 to the Build Illinois Fund from the State and Local Sales Tax
22 Reform Fund shall have been less than 1/12 of the Annual
23 Specified Amount, an amount equal to the difference shall be
24 immediately paid into the Build Illinois Fund from other
25 moneys received by the Department pursuant to the Tax Acts;
26 and, further provided, that in no event shall the payments
27 required under the preceding proviso result in aggregate
28 payments into the Build Illinois Fund pursuant to this clause
29 (b) for any fiscal year in excess of the greater of (i) the
30 Tax Act Amount or (ii) the Annual Specified Amount for such
31 fiscal year; and, further provided, that the amounts payable
32 into the Build Illinois Fund under this clause (b) shall be
33 payable only until such time as the aggregate amount on
34 deposit under each trust indenture securing Bonds issued and
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1 outstanding pursuant to the Build Illinois Bond Act is
2 sufficient, taking into account any future investment income,
3 to fully provide, in accordance with such indenture, for the
4 defeasance of or the payment of the principal of, premium, if
5 any, and interest on the Bonds secured by such indenture and
6 on any Bonds expected to be issued thereafter and all fees
7 and costs payable with respect thereto, all as certified by
8 the Director of the Bureau of the Budget. If on the last
9 business day of any month in which Bonds are outstanding
10 pursuant to the Build Illinois Bond Act, the aggregate of the
11 moneys deposited in the Build Illinois Bond Account in the
12 Build Illinois Fund in such month shall be less than the
13 amount required to be transferred in such month from the
14 Build Illinois Bond Account to the Build Illinois Bond
15 Retirement and Interest Fund pursuant to Section 13 of the
16 Build Illinois Bond Act, an amount equal to such deficiency
17 shall be immediately paid from other moneys received by the
18 Department pursuant to the Tax Acts to the Build Illinois
19 Fund; provided, however, that any amounts paid to the Build
20 Illinois Fund in any fiscal year pursuant to this sentence
21 shall be deemed to constitute payments pursuant to clause (b)
22 of the preceding sentence and shall reduce the amount
23 otherwise payable for such fiscal year pursuant to clause (b)
24 of the preceding sentence. The moneys received by the
25 Department pursuant to this Act and required to be deposited
26 into the Build Illinois Fund are subject to the pledge, claim
27 and charge set forth in Section 12 of the Build Illinois Bond
28 Act.
29 Subject to payment of amounts into the Build Illinois
30 Fund as provided in the preceding paragraph or in any
31 amendment thereto hereafter enacted, the following specified
32 monthly installment of the amount requested in the
33 certificate of the Chairman of the Metropolitan Pier and
34 Exposition Authority provided under Section 8.25f of the
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1 State Finance Act, but not in excess of the sums designated
2 as "Total Deposit", shall be deposited in the aggregate from
3 collections under Section 9 of the Use Tax Act, Section 9 of
4 the Service Use Tax Act, Section 9 of the Service Occupation
5 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
6 into the McCormick Place Expansion Project Fund in the
7 specified fiscal years.
8 Fiscal Year Total Deposit
9 1993 $0
10 1994 53,000,000
11 1995 58,000,000
12 1996 61,000,000
13 1997 64,000,000
14 1998 68,000,000
15 1999 71,000,000
16 2000 75,000,000
17 2001 80,000,000
18 2002 84,000,000
19 2003 89,000,000
20 2004 93,000,000
21 2005 97,000,000
22 2006 102,000,000
23 2007 and 106,000,000
24 each fiscal year
25 thereafter that bonds
26 are outstanding under
27 Section 13.2 of the
28 Metropolitan Pier and
29 Exposition Authority
30 Act, but not after fiscal year 2029.
31 Beginning July 20, 1993 and in each month of each fiscal
32 year thereafter, one-eighth of the amount requested in the
33 certificate of the Chairman of the Metropolitan Pier and
34 Exposition Authority for that fiscal year, less the amount
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1 deposited into the McCormick Place Expansion Project Fund by
2 the State Treasurer in the respective month under subsection
3 (g) of Section 13 of the Metropolitan Pier and Exposition
4 Authority Act, plus cumulative deficiencies in the deposits
5 required under this Section for previous months and years,
6 shall be deposited into the McCormick Place Expansion Project
7 Fund, until the full amount requested for the fiscal year,
8 but not in excess of the amount specified above as "Total
9 Deposit", has been deposited.
10 Subject to payment of amounts into the Build Illinois
11 Fund and the McCormick Place Expansion Project Fund pursuant
12 to the preceding paragraphs or in any amendment thereto
13 hereafter enacted, each month the Department shall pay into
14 the Local Government Distributive Fund 0.4% of the net
15 revenue realized for the preceding month from the 5% general
16 rate or 0.4% of 80% of the net revenue realized for the
17 preceding month from the 6.25% general rate, as the case may
18 be, on the selling price of tangible personal property which
19 amount shall, subject to appropriation, be distributed as
20 provided in Section 2 of the State Revenue Sharing Act. No
21 payments or distributions pursuant to this paragraph shall be
22 made if the tax imposed by this Act on photoprocessing
23 products is declared unconstitutional, or if the proceeds
24 from such tax are unavailable for distribution because of
25 litigation.
26 Subject to payment of amounts into the Build Illinois
27 Fund, the McCormick Place Expansion Project Fund, and the
28 Local Government Distributive Fund pursuant to the preceding
29 paragraphs or in any amendments thereto hereafter enacted,
30 beginning July 1, 1993, the Department shall each month pay
31 into the Illinois Tax Increment Fund 0.27% of 80% of the net
32 revenue realized for the preceding month from the 6.25%
33 general rate on the selling price of tangible personal
34 property.
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1 Remaining moneys received by the Department pursuant to
2 this Act shall be paid into the General Revenue Fund of the
3 State Treasury.
4 The Department may, upon separate written notice to a
5 taxpayer, require the taxpayer to prepare and file with the
6 Department on a form prescribed by the Department within not
7 less than 60 days after receipt of the notice an annual
8 information return for the tax year specified in the notice.
9 Such annual return to the Department shall include a
10 statement of gross receipts as shown by the taxpayer's last
11 Federal income tax return. If the total receipts of the
12 business as reported in the Federal income tax return do not
13 agree with the gross receipts reported to the Department of
14 Revenue for the same period, the taxpayer shall attach to his
15 annual return a schedule showing a reconciliation of the 2
16 amounts and the reasons for the difference. The taxpayer's
17 annual return to the Department shall also disclose the cost
18 of goods sold by the taxpayer during the year covered by such
19 return, opening and closing inventories of such goods for
20 such year, cost of goods used from stock or taken from stock
21 and given away by the taxpayer during such year, pay roll
22 information of the taxpayer's business during such year and
23 any additional reasonable information which the Department
24 deems would be helpful in determining the accuracy of the
25 monthly, quarterly or annual returns filed by such taxpayer
26 as hereinbefore provided for in this Section.
27 If the annual information return required by this Section
28 is not filed when and as required, the taxpayer shall be
29 liable as follows:
30 (i) Until January 1, 1994, the taxpayer shall be
31 liable for a penalty equal to 1/6 of 1% of the tax due
32 from such taxpayer under this Act during the period to be
33 covered by the annual return for each month or fraction
34 of a month until such return is filed as required, the
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1 penalty to be assessed and collected in the same manner
2 as any other penalty provided for in this Act.
3 (ii) On and after January 1, 1994, the taxpayer
4 shall be liable for a penalty as described in Section 3-4
5 of the Uniform Penalty and Interest Act.
6 The chief executive officer, proprietor, owner or highest
7 ranking manager shall sign the annual return to certify the
8 accuracy of the information contained therein. Any person
9 who willfully signs the annual return containing false or
10 inaccurate information shall be guilty of perjury and
11 punished accordingly. The annual return form prescribed by
12 the Department shall include a warning that the person
13 signing the return may be liable for perjury.
14 The foregoing portion of this Section concerning the
15 filing of an annual information return shall not apply to a
16 serviceman who is not required to file an income tax return
17 with the United States Government.
18 As soon as possible after the first day of each month,
19 upon certification of the Department of Revenue, the
20 Comptroller shall order transferred and the Treasurer shall
21 transfer from the General Revenue Fund to the Motor Fuel Tax
22 Fund an amount equal to 1.7% of 80% of the net revenue
23 realized under this Act for the second preceding month;
24 except that this transfer shall not be made for the months
25 February through June, 1992.
26 Net revenue realized for a month shall be the revenue
27 collected by the State pursuant to this Act, less the amount
28 paid out during that month as refunds to taxpayers for
29 overpayment of liability.
30 For greater simplicity of administration, it shall be
31 permissible for manufacturers, importers and wholesalers
32 whose products are sold by numerous servicemen in Illinois,
33 and who wish to do so, to assume the responsibility for
34 accounting and paying to the Department all tax accruing
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1 under this Act with respect to such sales, if the servicemen
2 who are affected do not make written objection to the
3 Department to this arrangement.
4 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
5 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-612, eff.
6 7-8-98.)
7 (35 ILCS 115/13) (from Ch. 120, par. 439.113)
8 Sec. 13. Any person (resident or non-resident) who
9 incurs tax liability under this Act as a serviceman in this
10 State and who removes from this State or conceals his
11 whereabouts, shall be deemed thereby to appoint the Secretary
12 of State of Illinois his agent for the service of process or
13 notice in any judicial or administrative proceeding under
14 this Act. Such process or notice shall be served by the
15 Department on the Secretary of State by leaving, at the
16 office of the Secretary of State at least 15 days before the
17 return day of such process or notice, a true and certified
18 copy thereof, and by sending to the taxpayer by registered or
19 certified mail, postage prepaid, a like and true certified
20 copy, with an endorsement thereon of the service upon said
21 Secretary of State, addressed to such taxpayer at his last
22 known address.
23 Service of process or notice in the manner provided for
24 in this Section, under the circumstances specified in this
25 Section, shall be of the same force and validity as if served
26 upon the taxpayer personally within this State. Proof of such
27 service upon the taxpayer in this State through the Secretary
28 of State as his agent and by mailing to the last known
29 address of the taxpayer may be made in such judicial or
30 administrative proceeding by the affidavit of the Director of
31 Revenue, or by his duly authorized representative who made
32 such service, with a copy of the process or notice that was
33 so served attached to such affidavit.
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1 (Source: P.A. 85-1135.)
2 (35 ILCS 115/15) (from Ch. 120, par. 439.115)
3 Sec. 15. When the amount due is under $300, any person
4 subject to the provisions hereof who fails to file a return,
5 or who violates any other provision of Section 9 or Section
6 10 hereof, or who fails to keep books and records as required
7 herein, or who files a fraudulent return, or who wilfully
8 violates any Rule or Regulation of the Department for the
9 administration and enforcement of the provisions hereof, or
10 any officer or agent of a corporation, or manager, member, or
11 agent of a limited liability company, subject hereto who
12 signs a fraudulent return filed on behalf of such corporation
13 or limited liability company, or any accountant or other
14 agent who knowingly enters false information on the return of
15 any taxpayer under this Act, or any person who violates any
16 of the provisions of Sections 3, 5 or 7 hereof, or any
17 purchaser who obtains a registration number or resale number
18 from the Department through misrepresentation, or who
19 represents to a seller that such purchaser has a registration
20 number or a resale number from the Department when he knows
21 that he does not, or who uses his registration number or
22 resale number to make a seller believe that he is buying
23 tangible personal property for resale when such purchaser in
24 fact knows that this is not the case, is guilty of a Class 4
25 felony.
26 Any person who violates any provision of Section 6
27 hereof, or who engages in the business of making sales of
28 service after his Certificate of Registration under this Act
29 has been revoked in accordance with Section 12 of this Act,
30 is guilty of a Class 4 felony. Each day any such person is
31 engaged in business in violation of Section 6, or after his
32 Certificate of Registration under this Act has been revoked,
33 constitutes a separate offense.
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1 When the amount due is under $300, any person who accepts
2 money that is due to the Department under this Act from a
3 taxpayer for the purpose of acting as the taxpayer's agent to
4 make the payment to the Department, but who fails to remit
5 such payment to the Department when due is guilty of a Class
6 4 felony. Any such person who purports to make such payment
7 by issuing or delivering a check or other order upon a real
8 or fictitious depository for the payment of money, knowing
9 that it will not be paid by the depository, shall be guilty
10 of a deceptive practice in violation of Section 17-1 of the
11 Criminal Code of 1961, as amended.
12 When the amount due is $300 or more, any person subject
13 to the provisions hereof who fails to file a return, or who
14 violates any other provision of Section 9 or Section 10
15 hereof, or who fails to keep books and records as required
16 herein, or who files a fraudulent return, or who wilfully
17 violates any rule or regulation of the Department for the
18 administration and enforcement of the provisions hereof, or
19 any officer or agent of a corporation, or manager, member, or
20 agent of a limited liability company, subject hereto who
21 signs a fraudulent return filed on behalf of such corporation
22 or limited liability company, or any accountant or other
23 agent who knowingly enters false information on the return of
24 any taxpayer under this Act, or any person who violates any
25 of the provisions of Sections 3, 5 or 7 hereof, or any
26 purchaser who obtains a registration number or resale number
27 from the Department through misrepresentation, or who
28 represents to a seller that such purchaser has a registration
29 number or a resale number from the Department when he knows
30 that he does not, or who uses his registration number or
31 resale number to make a seller believe that he is buying
32 tangible personal property for resale when such purchaser in
33 fact knows that this is not the case, is guilty of a Class 3
34 felony.
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1 When the amount due is $300 or more, any person who
2 accepts money that is due to the Department under this Act
3 from a taxpayer for the purpose of acting as the taxpayer's
4 agent to make the payment to the Department but who fails to
5 remit such payment to the Department when due is guilty of a
6 Class 3 felony. Any such person who purports to make such
7 payment by issuing or delivering a check or other order upon
8 a real or fictitious depository for the payment of money,
9 knowing that it will not be paid by the depository shall be
10 guilty of a deceptive practice in violation of Section 17-1
11 of the Criminal Code of 1961, as amended.
12 Any serviceman who collects or attempts to collect
13 Service Occupation Tax, measured by receipts which such
14 serviceman knows are not subject to Service Occupation Tax,
15 or any serviceman who collects or attempts to collect an
16 amount (however designated) which purports to reimburse such
17 serviceman for Service Occupation Tax liability measured by
18 receipts or selling prices which such serviceman knows are
19 not subject to Service Occupation Tax, or any serviceman who
20 knowingly over-collects or attempts to over-collect Service
21 Occupation Tax or an amount purporting to be reimbursement
22 for Service Occupation Tax liability in a transaction which
23 is subject to the tax that is imposed by this Act, shall be
24 guilty of a Class 4 felony for each such offense. This
25 paragraph does not apply to an amount collected by the
26 serviceman as reimbursement for the serviceman's Service
27 Occupation Tax liability on receipts or selling prices which
28 are subject to tax under this Act, as long as such collection
29 is made in compliance with the tax collection brackets
30 prescribed by the Department in its Rules and Regulations.
31 A prosecution for any act in violation of this Section
32 may be commenced at any time within 3 years of the commission
33 of that act.
34 This Section does not apply if the violation in a
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1 particular case also constitutes a criminal violation of the
2 Retailers' Occupation Tax Act or the Use Tax Act.
3 (Source: P.A. 88-480.)
4 (35 ILCS 115/439.110 rep.)
5 (35 ILCS 115/439.114 rep.)
6 Section 130. Sections 10 and 14 of the "Service
7 Occupation Tax Act", approved July 10, 1961, as amended, are
8 re-repealed.
9 Section 135. The Retailers' Occupation Tax Act is
10 amended by re-enacting Sections 2, 2-5, 2-10, 2-15, 2-20,
11 2-25, 2-30, 2-35, 2-40, 2-45, 2-50, 2-55, 2-60, 2-65, 3, and
12 5k as follows:
13 (35 ILCS 120/2) (from Ch. 120, par. 441)
14 Sec. 2. Tax imposed. A tax is imposed upon persons
15 engaged in the business of selling at retail tangible
16 personal property, including computer software, and including
17 photographs, negatives, and positives that are the product of
18 photoprocessing, but not including products of
19 photoprocessing produced for use in motion pictures for
20 public commercial exhibition.
21 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
22 86-928; 86-953; 86-1394; 86-1475.)
23 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
24 Sec. 2-5. Exemptions. Gross receipts from proceeds from
25 the sale of the following tangible personal property are
26 exempt from the tax imposed by this Act:
27 (1) Farm chemicals.
28 (2) Farm machinery and equipment, both new and used,
29 including that manufactured on special order, certified by
30 the purchaser to be used primarily for production agriculture
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1 or State or federal agricultural programs, including
2 individual replacement parts for the machinery and equipment,
3 including machinery and equipment purchased for lease, and
4 including implements of husbandry defined in Section 1-130 of
5 the Illinois Vehicle Code, farm machinery and agricultural
6 chemical and fertilizer spreaders, and nurse wagons required
7 to be registered under Section 3-809 of the Illinois Vehicle
8 Code, but excluding other motor vehicles required to be
9 registered under the Illinois Vehicle Code. Horticultural
10 polyhouses or hoop houses used for propagating, growing, or
11 overwintering plants shall be considered farm machinery and
12 equipment under this item (2). Agricultural chemical tender
13 tanks and dry boxes shall include units sold separately from
14 a motor vehicle required to be licensed and units sold
15 mounted on a motor vehicle required to be licensed, if the
16 selling price of the tender is separately stated.
17 Farm machinery and equipment shall include precision
18 farming equipment that is installed or purchased to be
19 installed on farm machinery and equipment including, but not
20 limited to, tractors, harvesters, sprayers, planters,
21 seeders, or spreaders. Precision farming equipment includes,
22 but is not limited to, soil testing sensors, computers,
23 monitors, software, global positioning and mapping systems,
24 and other such equipment.
25 Farm machinery and equipment also includes computers,
26 sensors, software, and related equipment used primarily in
27 the computer-assisted operation of production agriculture
28 facilities, equipment, and activities such as, but not
29 limited to, the collection, monitoring, and correlation of
30 animal and crop data for the purpose of formulating animal
31 diets and agricultural chemicals. This item (7) is exempt
32 from the provisions of Section 3-75.
33 (3) Distillation machinery and equipment, sold as a unit
34 or kit, assembled or installed by the retailer, certified by
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1 the user to be used only for the production of ethyl alcohol
2 that will be used for consumption as motor fuel or as a
3 component of motor fuel for the personal use of the user, and
4 not subject to sale or resale.
5 (4) Graphic arts machinery and equipment, including
6 repair and replacement parts, both new and used, and
7 including that manufactured on special order or purchased for
8 lease, certified by the purchaser to be used primarily for
9 graphic arts production.
10 (5) A motor vehicle of the first division, a motor
11 vehicle of the second division that is a self-contained motor
12 vehicle designed or permanently converted to provide living
13 quarters for recreational, camping, or travel use, with
14 direct walk through access to the living quarters from the
15 driver's seat, or a motor vehicle of the second division that
16 is of the van configuration designed for the transportation
17 of not less than 7 nor more than 16 passengers, as defined in
18 Section 1-146 of the Illinois Vehicle Code, that is used for
19 automobile renting, as defined in the Automobile Renting
20 Occupation and Use Tax Act.
21 (6) Personal property sold by a teacher-sponsored
22 student organization affiliated with an elementary or
23 secondary school located in Illinois.
24 (7) Proceeds of that portion of the selling price of a
25 passenger car the sale of which is subject to the Replacement
26 Vehicle Tax.
27 (8) Personal property sold to an Illinois county fair
28 association for use in conducting, operating, or promoting
29 the county fair.
30 (9) Personal property sold to a not-for-profit music or
31 dramatic arts organization that establishes, by proof
32 required by the Department by rule, that it has received an
33 exemption under Section 501(c) (3) of the Internal Revenue
34 Code and that is organized and operated for the presentation
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1 of live public performances of musical or theatrical works on
2 a regular basis.
3 (10) Personal property sold by a corporation, society,
4 association, foundation, institution, or organization, other
5 than a limited liability company, that is organized and
6 operated as a not-for-profit service enterprise for the
7 benefit of persons 65 years of age or older if the personal
8 property was not purchased by the enterprise for the purpose
9 of resale by the enterprise.
10 (11) Personal property sold to a governmental body, to a
11 corporation, society, association, foundation, or institution
12 organized and operated exclusively for charitable, religious,
13 or educational purposes, or to a not-for-profit corporation,
14 society, association, foundation, institution, or
15 organization that has no compensated officers or employees
16 and that is organized and operated primarily for the
17 recreation of persons 55 years of age or older. A limited
18 liability company may qualify for the exemption under this
19 paragraph only if the limited liability company is organized
20 and operated exclusively for educational purposes. On and
21 after July 1, 1987, however, no entity otherwise eligible for
22 this exemption shall make tax-free purchases unless it has an
23 active identification number issued by the Department.
24 (12) Personal property sold to interstate carriers for
25 hire for use as rolling stock moving in interstate commerce
26 or to lessors under leases of one year or longer executed or
27 in effect at the time of purchase by interstate carriers for
28 hire for use as rolling stock moving in interstate commerce
29 and equipment operated by a telecommunications provider,
30 licensed as a common carrier by the Federal Communications
31 Commission, which is permanently installed in or affixed to
32 aircraft moving in interstate commerce.
33 (13) Proceeds from sales to owners, lessors, or shippers
34 of tangible personal property that is utilized by interstate
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1 carriers for hire for use as rolling stock moving in
2 interstate commerce and equipment operated by a
3 telecommunications provider, licensed as a common carrier by
4 the Federal Communications Commission, which is permanently
5 installed in or affixed to aircraft moving in interstate
6 commerce.
7 (14) Machinery and equipment that will be used by the
8 purchaser, or a lessee of the purchaser, primarily in the
9 process of manufacturing or assembling tangible personal
10 property for wholesale or retail sale or lease, whether the
11 sale or lease is made directly by the manufacturer or by some
12 other person, whether the materials used in the process are
13 owned by the manufacturer or some other person, or whether
14 the sale or lease is made apart from or as an incident to the
15 seller's engaging in the service occupation of producing
16 machines, tools, dies, jigs, patterns, gauges, or other
17 similar items of no commercial value on special order for a
18 particular purchaser.
19 (15) Proceeds of mandatory service charges separately
20 stated on customers' bills for purchase and consumption of
21 food and beverages, to the extent that the proceeds of the
22 service charge are in fact turned over as tips or as a
23 substitute for tips to the employees who participate directly
24 in preparing, serving, hosting or cleaning up the food or
25 beverage function with respect to which the service charge is
26 imposed.
27 (16) Petroleum products sold to a purchaser if the
28 seller is prohibited by federal law from charging tax to the
29 purchaser.
30 (17) Tangible personal property sold to a common carrier
31 by rail or motor that receives the physical possession of the
32 property in Illinois and that transports the property, or
33 shares with another common carrier in the transportation of
34 the property, out of Illinois on a standard uniform bill of
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1 lading showing the seller of the property as the shipper or
2 consignor of the property to a destination outside Illinois,
3 for use outside Illinois.
4 (18) Legal tender, currency, medallions, or gold or
5 silver coinage issued by the State of Illinois, the
6 government of the United States of America, or the government
7 of any foreign country, and bullion.
8 (19) Oil field exploration, drilling, and production
9 equipment, including (i) rigs and parts of rigs, rotary rigs,
10 cable tool rigs, and workover rigs, (ii) pipe and tubular
11 goods, including casing and drill strings, (iii) pumps and
12 pump-jack units, (iv) storage tanks and flow lines, (v) any
13 individual replacement part for oil field exploration,
14 drilling, and production equipment, and (vi) machinery and
15 equipment purchased for lease; but excluding motor vehicles
16 required to be registered under the Illinois Vehicle Code.
17 (20) Photoprocessing machinery and equipment, including
18 repair and replacement parts, both new and used, including
19 that manufactured on special order, certified by the
20 purchaser to be used primarily for photoprocessing, and
21 including photoprocessing machinery and equipment purchased
22 for lease.
23 (21) Coal exploration, mining, offhighway hauling,
24 processing, maintenance, and reclamation equipment, including
25 replacement parts and equipment, and including equipment
26 purchased for lease, but excluding motor vehicles required to
27 be registered under the Illinois Vehicle Code.
28 (22) Fuel and petroleum products sold to or used by an
29 air 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.
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1 (23) A transaction in which the purchase order is
2 received by a florist who is located outside Illinois, but
3 who has a florist located in Illinois deliver the property to
4 the purchaser or the purchaser's donee in Illinois.
5 (24) Fuel consumed or used in the operation of ships,
6 barges, or vessels that are used primarily in or for the
7 transportation of property or the conveyance of persons for
8 hire on rivers bordering on this State if the fuel is
9 delivered by the seller to the purchaser's barge, ship, or
10 vessel while it is afloat upon that bordering river.
11 (25) A motor vehicle sold in this State to a nonresident
12 even though the motor vehicle is delivered to the nonresident
13 in this State, if the motor vehicle is not to be titled in
14 this State, and if a driveaway decal permit is issued to the
15 motor vehicle as provided in Section 3-603 of the Illinois
16 Vehicle Code or if the nonresident purchaser has vehicle
17 registration plates to transfer to the motor vehicle upon
18 returning to his or her home state. The issuance of the
19 driveaway decal permit or having the out-of-state
20 registration plates to be transferred is prima facie evidence
21 that the motor vehicle will not be titled in this State.
22 (26) Semen used for artificial insemination of livestock
23 for direct agricultural production.
24 (27) Horses, or interests in horses, registered with and
25 meeting the requirements of any of the Arabian Horse Club
26 Registry of America, Appaloosa Horse Club, American Quarter
27 Horse Association, United States Trotting Association, or
28 Jockey Club, as appropriate, used for purposes of breeding or
29 racing for prizes.
30 (28) Computers and communications equipment utilized for
31 any hospital purpose and equipment used in the diagnosis,
32 analysis, or treatment of hospital patients sold to a lessor
33 who leases the equipment, under a lease of one year or longer
34 executed or in effect at the time of the purchase, to a
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1 hospital that has been issued an active tax exemption
2 identification number by the Department under Section 1g of
3 this Act.
4 (29) Personal property sold to a lessor who leases the
5 property, under a lease of one year or longer executed or in
6 effect at the time of the purchase, to a governmental body
7 that has been issued an active tax exemption identification
8 number by the Department under Section 1g of this Act.
9 (30) Beginning with taxable years ending on or after
10 December 31, 1995 and ending with taxable years ending on or
11 before December 31, 2004, personal property that is donated
12 for disaster relief to be used in a State or federally
13 declared disaster area in Illinois or bordering Illinois by a
14 manufacturer or retailer that is registered in this State to
15 a corporation, society, association, foundation, or
16 institution that has been issued a sales tax exemption
17 identification number by the Department that assists victims
18 of the disaster who reside within the declared disaster area.
19 (31) Beginning with taxable years ending on or after
20 December 31, 1995 and ending with taxable years ending on or
21 before December 31, 2004, personal property that is used in
22 the performance of infrastructure repairs in this State,
23 including but not limited to municipal roads and streets,
24 access roads, bridges, sidewalks, waste disposal systems,
25 water and sewer line extensions, water distribution and
26 purification facilities, storm water drainage and retention
27 facilities, and sewage treatment facilities, resulting from a
28 State or federally declared disaster in Illinois or bordering
29 Illinois when such repairs are initiated on facilities
30 located in the declared disaster area within 6 months after
31 the disaster.
32 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
33 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
34 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519,
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1 eff. 6-1-98; 90-552, eff. 12-12-97; 90-605, eff. 6-30-98.)
2 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
3 Sec. 2-10. Rate of tax. Unless otherwise provided in
4 this Section, the tax imposed by this Act is at the rate of
5 6.25% of gross receipts from sales of tangible personal
6 property made in the course of business.
7 With respect to gasohol, as defined in the Use Tax Act,
8 the tax imposed by this Act applies to 70% of the proceeds of
9 sales made on or after January 1, 1990, and before July 1,
10 2003, and to 100% of the proceeds of sales made thereafter.
11 With respect to food for human consumption that is to be
12 consumed off the premises where it is sold (other than
13 alcoholic beverages, soft drinks, and food that has been
14 prepared for immediate consumption) and prescription and
15 nonprescription medicines, drugs, medical appliances,
16 modifications to a motor vehicle for the purpose of rendering
17 it usable by a disabled person, and insulin, urine testing
18 materials, syringes, and needles used by diabetics, for human
19 use, the tax is imposed at the rate of 1%. For the purposes
20 of this Section, the term "soft drinks" means any complete,
21 finished, ready-to-use, non-alcoholic drink, whether
22 carbonated or not, including but not limited to soda water,
23 cola, fruit juice, vegetable juice, carbonated water, and all
24 other preparations commonly known as soft drinks of whatever
25 kind or description that are contained in any closed or
26 sealed bottle, can, carton, or container, regardless of size.
27 "Soft drinks" does not include coffee, tea, non-carbonated
28 water, infant formula, milk or milk products as defined in
29 the Grade A Pasteurized Milk and Milk Products Act, or drinks
30 containing 50% or more natural fruit or vegetable juice.
31 Notwithstanding any other provisions of this Act, "food
32 for human consumption that is to be consumed off the premises
33 where it is sold" includes all food sold through a vending
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1 machine, except soft drinks and food products that are
2 dispensed hot from a vending machine, regardless of the
3 location of the vending machine.
4 (Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
5 89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
6 6-30-98; 90-606, eff. 6-30-98.)
7 (35 ILCS 120/2-15) (from Ch. 120, par. 441-15)
8 Sec. 2-15. Photoprocessing. For purposes of the tax
9 imposed on photographs, negatives, and positives by this Act,
10 "photoprocessing" includes, but is not limited to, developing
11 films, positives, negatives, and transparencies, and tinting,
12 coloring, making, and enlarging prints. Photoprocessing does
13 not include color separation, typesetting, and platemaking by
14 photographic means in the graphic arts industry and does not
15 include any procedure, process, or activity connected with
16 the creation of the images on the film from which the
17 negatives, positives, or photographs are derived. The charge
18 for in-house photoprocessing may not be less than the
19 photoprocessor's cost price of materials. In transactions in
20 which products of photoprocessing are sold in conjunction
21 with other services, if a charge for the photoprocessing
22 component is not separately stated, tax is imposed on 50% of
23 the entire selling price unless the sale is made by a
24 professional photographer, in which case tax is imposed on
25 10% of the entire selling price.
26 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
27 86-928; 86-953; 86-1394; 86-1475.)
28 (35 ILCS 120/2-20) (from Ch. 120, par. 441-20)
29 Sec. 2-20. Bullion. For purposes of this Act, "bullion"
30 means gold, silver, or platinum in a bulk state with a purity
31 of not less than 980 parts per 1,000.
32 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
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1 86-928; 86-953; 86-1394; 86-1475.)
2 (35 ILCS 120/2-25) (from Ch. 120, par. 441-25)
3 Sec. 2-25. Computer software. For the purposes of this
4 Act, "computer software" means a set of statements, data, or
5 instructions to be used directly or indirectly in a computer
6 in order to bring about a certain result in any form in which
7 those statements, data, or instructions may be embodied,
8 transmitted, or fixed, by any method now known or hereafter
9 developed, regardless of whether the statements, data, or
10 instructions are capable of being perceived by or
11 communicated to humans, and includes prewritten or canned
12 software that is held for repeated sale or lease, and all
13 associated documentation and materials, if any, whether
14 contained on magnetic tapes, discs, cards, or other devices
15 or media, but does not include software that is adapted to
16 specific individualized requirements of a purchaser,
17 custom-made and modified software designed for a particular
18 or limited use by a purchaser, or software used to operate
19 exempt machinery and equipment used in the process of
20 manufacturing or assembling tangible personal property for
21 wholesale or retail sale or lease.
22 For the purposes of this Act, computer software shall be
23 considered to be tangible personal property.
24 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
25 86-928; 86-953; 86-1394; 86-1475.)
26 (35 ILCS 120/2-30) (from Ch. 120, par. 441-30)
27 Sec. 2-30. Graphic arts production. For purposes of
28 this Act, "graphic arts production" means printing by one or
29 more of the common processes or graphic arts production
30 services as those processes and services are defined in Major
31 Group 27 of the U.S. Standard Industrial Classification
32 Manual.
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1 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
2 86-928; 86-953; 86-1394; 86-1475.)
3 (35 ILCS 120/2-35) (from Ch. 120, par. 441-35)
4 Sec. 2-35. Production agriculture. For purposes of this
5 Act, "production agriculture" means the raising of or the
6 propagation of livestock; crops for sale for human
7 consumption; crops for livestock consumption; and production
8 seed stock grown for the propagation of feed grains and the
9 husbandry of animals or for the purpose of providing a food
10 product, including the husbandry of blood stock as a main
11 source of providing a food product. "Production agriculture"
12 also means animal husbandry, floriculture, aquaculture,
13 horticulture, and viticulture.
14 (Source: P.A. 89-220, eff. 1-1-96.)
15 (35 ILCS 120/2-40) (from Ch. 120, par. 441-40)
16 Sec. 2-40. Purchaser refunds. If a seller collects an
17 amount (however designated) that purports to reimburse the
18 seller for retailers' occupation tax liability measured by
19 receipts that are not subject to retailers' occupation tax,
20 or if a seller, in collecting an amount (however designated)
21 that purports to reimburse the seller for retailers'
22 occupation tax liability measured by receipts that are
23 subject to tax under this Act, collects more from the
24 purchaser than the seller's retailers' occupation tax
25 liability on the transaction, the purchaser shall have a
26 legal right to claim a refund of that amount from the seller.
27 If, however, that amount is not refunded to the purchaser for
28 any reason, the seller is liable to pay that amount to the
29 Department. This paragraph does not apply to an amount
30 collected by the seller as reimbursement for the seller's
31 retailers' occupation tax liability on receipts that are
32 subject to tax under this Act as long as the collection is
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1 made in compliance with the tax collection brackets
2 prescribed by the Department in its rules and regulations.
3 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
4 86-928; 86-953; 86-1394; 86-1475.)
5 (35 ILCS 120/2-45) (from Ch. 120, par. 441-45)
6 Sec. 2-45. Manufacturing and assembly exemption. The
7 manufacturing and assembly machinery and equipment exemption
8 includes machinery and equipment that replaces machinery and
9 equipment in an existing manufacturing facility as well as
10 machinery and equipment that are for use in an expanded or
11 new manufacturing facility.
12 The machinery and equipment exemption also includes
13 machinery and equipment used in the general maintenance or
14 repair of exempt machinery and equipment or for in-house
15 manufacture of exempt machinery and equipment. For the
16 purposes of this exemption, terms have the following
17 meanings:
18 (1) "Manufacturing process" means the production of
19 an article of tangible personal property, whether the
20 article is a finished product or an article for use in
21 the process of manufacturing or assembling a different
22 article of tangible personal property, by a procedure
23 commonly regarded as manufacturing, processing,
24 fabricating, or refining that changes some existing
25 material or materials into a material with a different
26 form, use, or name. In relation to a recognized
27 integrated business composed of a series of operations
28 that collectively constitute manufacturing, or
29 individually constitute manufacturing operations, the
30 manufacturing process commences with the first operation
31 or stage of production in the series and does not end
32 until the completion of the final product in the last
33 operation or stage of production in the series. For
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1 purposes of this exemption, photoprocessing is a
2 manufacturing process of tangible personal property for
3 wholesale or retail sale.
4 (2) "Assembling process" means the production of an
5 article of tangible personal property, whether the
6 article is a finished product or an article for use in
7 the process of manufacturing or assembling a different
8 article of tangible personal property, by the combination
9 of existing materials in a manner commonly regarded as
10 assembling that results in a material of a different
11 form, use, or name.
12 (3) "Machinery" means major mechanical machines or
13 major components of those machines contributing to a
14 manufacturing or assembling process.
15 (4) "Equipment" includes an independent device or
16 tool separate from machinery but essential to an
17 integrated manufacturing or assembly process; including
18 computers used primarily in operating exempt machinery
19 and equipment in a computer assisted design, computer
20 assisted manufacturing (CAD/CAM) system; any subunit or
21 assembly comprising a component of any machinery or
22 auxiliary, adjunct, or attachment parts of machinery,
23 such as tools, dies, jigs, fixtures, patterns, and molds;
24 and any parts that require periodic replacement in the
25 course of normal operation; but does not include hand
26 tools.
27 The manufacturing and assembling machinery and equipment
28 exemption includes the sale of materials to a purchaser who
29 produces exempted types of machinery, equipment, or tools and
30 who rents or leases that machinery, equipment, or tools to a
31 manufacturer of tangible personal property. This exemption
32 also includes the sale of materials to a purchaser who
33 manufactures those materials into an exempted type of
34 machinery, equipment, or tools that the purchaser uses
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1 himself or herself in the manufacturing of tangible personal
2 property. The purchaser of the machinery and equipment who
3 has an active resale registration number shall furnish that
4 number to the seller at the time of purchase. A purchaser of
5 the machinery, equipment, and tools without an active resale
6 registration number shall furnish to the seller a certificate
7 of exemption for each transaction stating facts establishing
8 the exemption for that transaction, and that certificate
9 shall be available to the Department for inspection or audit.
10 Informal rulings, opinions, or letters issued by the
11 Department in response to an inquiry or request for an
12 opinion from any person regarding the coverage and
13 applicability of this exemption to specific devices shall be
14 published, maintained as a public record, and made available
15 for public inspection and copying. If the informal ruling,
16 opinion, or letter contains trade secrets or other
17 confidential information, where possible, the Department
18 shall delete that information before publication. Whenever
19 informal rulings, opinions, or letters contain a policy of
20 general applicability, the Department shall formulate and
21 adopt that policy as a rule in accordance with the Illinois
22 Administrative Procedure Act.
23 (Source: P.A. 88-505; 88-547.)
24 (35 ILCS 120/2-50) (from Ch. 120, par. 441-50)
25 Sec. 2-50. Rolling stock exemption. The rolling stock
26 exemption applies to rolling stock used by an interstate
27 carrier for hire, even just between points in Illinois, if
28 the rolling stock transports, for hire, persons whose
29 journeys or property whose shipments originate or terminate
30 outside Illinois.
31 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
32 86-928; 86-953; 86-1394; 86-1475.)
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1 (35 ILCS 120/2-55) (from Ch. 120, par. 441-55)
2 Sec. 2-55. Serviceman transfer. Tangible personal
3 property purchased by a serviceman, as defined in Section 2
4 of the Service Occupation Tax Act, is subject to the tax
5 imposed by this Act when purchased for transfer by the
6 serviceman incidental to completion of a maintenance
7 agreement.
8 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
9 86-928; 86-953; 86-1394; 86-1475.)
10 (35 ILCS 120/2-60) (from Ch. 120, par. 441-60)
11 Sec. 2-60. Interstate commerce exemption. No tax is
12 imposed under this Act upon the privilege of engaging in a
13 business in interstate commerce or otherwise, when the
14 business may not, under the Constitution and statutes of the
15 United States, be made the subject of taxation by this State.
16 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
17 86-928; 86-953; 86-1394; 86-1475.)
18 (35 ILCS 120/2-65) (from Ch. 120, par. 441-65)
19 Sec. 2-65. Liability because of amendatory Act.
20 Revisions in Section 2 (now Sections 2 through 2-65) by
21 Public Act 85-1135 do not affect tax liability that arose
22 before January 1, 1990.
23 (Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
24 86-928; 86-953; 86-1394; 86-1475.)
25 (35 ILCS 120/3) (from Ch. 120, par. 442)
26 Sec. 3. Except as provided in this Section, on or before
27 the twentieth day of each calendar month, every person
28 engaged in the business of selling tangible personal property
29 at retail in this State during the preceding calendar month
30 shall file a return with the Department, stating:
31 1. The name of the seller;
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1 2. His residence address and the address of his
2 principal place of business and the address of the
3 principal place of business (if that is a different
4 address) from which he engages in the business of selling
5 tangible personal property at retail in this State;
6 3. Total amount of receipts received by him during
7 the preceding calendar month or quarter, as the case may
8 be, from sales of tangible personal property, and from
9 services furnished, by him during such preceding calendar
10 month or quarter;
11 4. Total amount received by him during the
12 preceding calendar month or quarter on charge and time
13 sales of tangible personal property, and from services
14 furnished, by him prior to the month or quarter for which
15 the return is filed;
16 5. Deductions allowed by law;
17 6. Gross receipts which were received by him during
18 the preceding calendar month or quarter and upon the
19 basis of which the tax is imposed;
20 7. The amount of credit provided in Section 2d of
21 this Act;
22 8. The amount of tax due;
23 9. The signature of the taxpayer; and
24 10. Such other reasonable information as the
25 Department may require.
26 If a taxpayer fails to sign a return within 30 days after
27 the proper notice and demand for signature by the Department,
28 the return shall be considered valid and any amount shown to
29 be due on the return shall be deemed assessed.
30 Each return shall be accompanied by the statement of
31 prepaid tax issued pursuant to Section 2e for which credit is
32 claimed.
33 A retailer may accept a Manufacturer's Purchase Credit
34 certification from a purchaser in satisfaction of Use Tax as
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1 provided in Section 3-85 of the Use Tax Act if the purchaser
2 provides the appropriate documentation as required by Section
3 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
4 certification, accepted by a retailer as provided in Section
5 3-85 of the Use Tax Act, may be used by that retailer to
6 satisfy Retailers' Occupation Tax liability in the amount
7 claimed in the certification, not to exceed 6.25% of the
8 receipts subject to tax from a qualifying purchase.
9 The Department may require returns to be filed on a
10 quarterly basis. If so required, a return for each calendar
11 quarter shall be filed on or before the twentieth day of the
12 calendar month following the end of such calendar quarter.
13 The taxpayer shall also file a return with the Department for
14 each of the first two months of each calendar quarter, on or
15 before the twentieth day of the following calendar month,
16 stating:
17 1. The name of the seller;
18 2. The address of the principal place of business
19 from which he engages in the business of selling tangible
20 personal property at retail in this State;
21 3. The total amount of taxable receipts received by
22 him during the preceding calendar month from sales of
23 tangible personal property by him during such preceding
24 calendar month, including receipts from charge and time
25 sales, but less all deductions allowed by law;
26 4. The amount of credit provided in Section 2d of
27 this Act;
28 5. The amount of tax due; and
29 6. Such other reasonable information as the
30 Department may require.
31 If a total amount of less than $1 is payable, refundable
32 or creditable, such amount shall be disregarded if it is less
33 than 50 cents and shall be increased to $1 if it is 50 cents
34 or more.
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1 Beginning October 1, 1993, a taxpayer who has an average
2 monthly tax liability of $150,000 or more shall make all
3 payments required by rules of the Department by electronic
4 funds transfer. Beginning October 1, 1994, a taxpayer who
5 has an average monthly tax liability of $100,000 or more
6 shall make all payments required by rules of the Department
7 by electronic funds transfer. Beginning October 1, 1995, a
8 taxpayer who has an average monthly tax liability of $50,000
9 or more shall make all payments required by rules of the
10 Department by electronic funds transfer. The term "average
11 monthly tax liability" shall be the sum of the taxpayer's
12 liabilities under this Act, and under all other State and
13 local occupation and use tax laws administered by the
14 Department, for the immediately preceding calendar year
15 divided by 12.
16 Before August 1 of each year beginning in 1993, the
17 Department shall notify all taxpayers required to make
18 payments by electronic funds transfer. All taxpayers
19 required to make payments by electronic funds transfer shall
20 make those payments for a minimum of one year beginning on
21 October 1.
22 Any taxpayer not required to make payments by electronic
23 funds transfer may make payments by electronic funds transfer
24 with the permission of the Department.
25 All taxpayers required to make payment by electronic
26 funds transfer and any taxpayers authorized to voluntarily
27 make payments by electronic funds transfer shall make those
28 payments in the manner authorized by the Department.
29 The Department shall adopt such rules as are necessary to
30 effectuate a program of electronic funds transfer and the
31 requirements of this Section.
32 Any amount which is required to be shown or reported on
33 any return or other document under this Act shall, if such
34 amount is not a whole-dollar amount, be increased to the
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1 nearest whole-dollar amount in any case where the fractional
2 part of a dollar is 50 cents or more, and decreased to the
3 nearest whole-dollar amount where the fractional part of a
4 dollar is less than 50 cents.
5 If the retailer is otherwise required to file a monthly
6 return and if the retailer's average monthly tax liability to
7 the Department does not exceed $200, the Department may
8 authorize his returns to be filed on a quarter annual basis,
9 with the return for January, February and March of a given
10 year being due by April 20 of such year; with the return for
11 April, May and June of a given year being due by July 20 of
12 such year; with the return for July, August and September of
13 a given year being due by October 20 of such year, and with
14 the return for October, November and December of a given year
15 being due by January 20 of the following year.
16 If the retailer is otherwise required to file a monthly
17 or quarterly return and if the retailer's average monthly tax
18 liability with the Department does not exceed $50, the
19 Department may authorize his returns to be filed on an annual
20 basis, with the return for a given year being due by January
21 20 of the following year.
22 Such quarter annual and annual returns, as to form and
23 substance, shall be subject to the same requirements as
24 monthly returns.
25 Notwithstanding any other provision in this Act
26 concerning the time within which a retailer may file his
27 return, in the case of any retailer who ceases to engage in a
28 kind of business which makes him responsible for filing
29 returns under this Act, such retailer shall file a final
30 return under this Act with the Department not more than one
31 month after discontinuing such business.
32 Where the same person has more than one business
33 registered with the Department under separate registrations
34 under this Act, such person may not file each return that is
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1 due as a single return covering all such registered
2 businesses, but shall file separate returns for each such
3 registered business.
4 In addition, with respect to motor vehicles, watercraft,
5 aircraft, and trailers that are required to be registered
6 with an agency of this State, every retailer selling this
7 kind of tangible personal property shall file, with the
8 Department, upon a form to be prescribed and supplied by the
9 Department, a separate return for each such item of tangible
10 personal property which the retailer sells, except that
11 where, in the same transaction, a retailer of aircraft,
12 watercraft, motor vehicles or trailers transfers more than
13 one aircraft, watercraft, motor vehicle or trailer to another
14 aircraft, watercraft, motor vehicle retailer or trailer
15 retailer for the purpose of resale, that seller for resale
16 may report the transfer of all aircraft, watercraft, motor
17 vehicles or trailers involved in that transaction to the
18 Department on the same uniform invoice-transaction reporting
19 return form. For purposes of this Section, "watercraft"
20 means a Class 2, Class 3, or Class 4 watercraft as defined in
21 Section 3-2 of the Boat Registration and Safety Act, a
22 personal watercraft, or any boat equipped with an inboard
23 motor.
24 Any retailer who sells only motor vehicles, watercraft,
25 aircraft, or trailers that are required to be registered with
26 an agency of this State, so that all retailers' occupation
27 tax liability is required to be reported, and is reported, on
28 such transaction reporting returns and who is not otherwise
29 required to file monthly or quarterly returns, need not file
30 monthly or quarterly returns. However, those retailers shall
31 be required to file returns on an annual basis.
32 The transaction reporting return, in the case of motor
33 vehicles or trailers that are required to be registered with
34 an agency of this State, shall be the same document as the
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1 Uniform Invoice referred to in Section 5-402 of The Illinois
2 Vehicle Code and must show the name and address of the
3 seller; the name and address of the purchaser; the amount of
4 the selling price including the amount allowed by the
5 retailer for traded-in property, if any; the amount allowed
6 by the retailer for the traded-in tangible personal property,
7 if any, to the extent to which Section 1 of this Act allows
8 an exemption for the value of traded-in property; the balance
9 payable after deducting such trade-in allowance from the
10 total selling price; the amount of tax due from the retailer
11 with respect to such transaction; the amount of tax collected
12 from the purchaser by the retailer on such transaction (or
13 satisfactory evidence that such tax is not due in that
14 particular instance, if that is claimed to be the fact); the
15 place and date of the sale; a sufficient identification of
16 the property sold; such other information as is required in
17 Section 5-402 of The Illinois Vehicle Code, and such other
18 information as the Department may reasonably require.
19 The transaction reporting return in the case of
20 watercraft or aircraft must show the name and address of the
21 seller; the name and address of the purchaser; the amount of
22 the selling price including the amount allowed by the
23 retailer for traded-in property, if any; the amount allowed
24 by the retailer for the traded-in tangible personal property,
25 if any, to the extent to which Section 1 of this Act allows
26 an exemption for the value of traded-in property; the balance
27 payable after deducting such trade-in allowance from the
28 total selling price; the amount of tax due from the retailer
29 with respect to such transaction; the amount of tax collected
30 from the purchaser by the retailer on such transaction (or
31 satisfactory evidence that such tax is not due in that
32 particular instance, if that is claimed to be the fact); the
33 place and date of the sale, a sufficient identification of
34 the property sold, and such other information as the
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1 Department may reasonably require.
2 Such transaction reporting return shall be filed not
3 later than 20 days after the day of delivery of the item that
4 is being sold, but may be filed by the retailer at any time
5 sooner than that if he chooses to do so. The transaction
6 reporting return and tax remittance or proof of exemption
7 from the Illinois use tax may be transmitted to the
8 Department by way of the State agency with which, or State
9 officer with whom the tangible personal property must be
10 titled or registered (if titling or registration is required)
11 if the Department and such agency or State officer determine
12 that this procedure will expedite the processing of
13 applications for title or registration.
14 With each such transaction reporting return, the retailer
15 shall remit the proper amount of tax due (or shall submit
16 satisfactory evidence that the sale is not taxable if that is
17 the case), to the Department or its agents, whereupon the
18 Department shall issue, in the purchaser's name, a use tax
19 receipt (or a certificate of exemption if the Department is
20 satisfied that the particular sale is tax exempt) which such
21 purchaser may submit to the agency with which, or State
22 officer with whom, he must title or register the tangible
23 personal property that is involved (if titling or
24 registration is required) in support of such purchaser's
25 application for an Illinois certificate or other evidence of
26 title or registration to such tangible personal property.
27 No retailer's failure or refusal to remit tax under this
28 Act precludes a user, who has paid the proper tax to the
29 retailer, from obtaining his certificate of title or other
30 evidence of title or registration (if titling or registration
31 is required) upon satisfying the Department that such user
32 has paid the proper tax (if tax is due) to the retailer. The
33 Department shall adopt appropriate rules to carry out the
34 mandate of this paragraph.
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1 If the user who would otherwise pay tax to the retailer
2 wants the transaction reporting return filed and the payment
3 of the tax or proof of exemption made to the Department
4 before the retailer is willing to take these actions and such
5 user has not paid the tax to the retailer, such user may
6 certify to the fact of such delay by the retailer and may
7 (upon the Department being satisfied of the truth of such
8 certification) transmit the information required by the
9 transaction reporting return and the remittance for tax or
10 proof of exemption directly to the Department and obtain his
11 tax receipt or exemption determination, in which event the
12 transaction reporting return and tax remittance (if a tax
13 payment was required) shall be credited by the Department to
14 the proper retailer's account with the Department, but
15 without the 2.1% or 1.75% discount provided for in this
16 Section being allowed. When the user pays the tax directly
17 to the Department, he shall pay the tax in the same amount
18 and in the same form in which it would be remitted if the tax
19 had been remitted to the Department by the retailer.
20 Refunds made by the seller during the preceding return
21 period to purchasers, on account of tangible personal
22 property returned to the seller, shall be allowed as a
23 deduction under subdivision 5 of his monthly or quarterly
24 return, as the case may be, in case the seller had
25 theretofore included the receipts from the sale of such
26 tangible personal property in a return filed by him and had
27 paid the tax imposed by this Act with respect to such
28 receipts.
29 Where the seller is a corporation, the return filed on
30 behalf of such corporation shall be signed by the president,
31 vice-president, secretary or treasurer or by the properly
32 accredited agent of such corporation.
33 Where the seller is a limited liability company, the
34 return filed on behalf of the limited liability company shall
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1 be signed by a manager, member, or properly accredited agent
2 of the limited liability company.
3 Except as provided in this Section, the retailer filing
4 the return under this Section shall, at the time of filing
5 such return, pay to the Department the amount of tax imposed
6 by this Act less a discount of 2.1% prior to January 1, 1990
7 and 1.75% on and after January 1, 1990, or $5 per calendar
8 year, whichever is greater, which is allowed to reimburse the
9 retailer for the expenses incurred in keeping records,
10 preparing and filing returns, remitting the tax and supplying
11 data to the Department on request. Any prepayment made
12 pursuant to Section 2d of this Act shall be included in the
13 amount on which such 2.1% or 1.75% discount is computed. In
14 the case of retailers who report and pay the tax on a
15 transaction by transaction basis, as provided in this
16 Section, such discount shall be taken with each such tax
17 remittance instead of when such retailer files his periodic
18 return.
19 If the taxpayer's average monthly tax liability to the
20 Department under this Act, the Use Tax Act, the Service
21 Occupation Tax Act, and the Service Use Tax Act, excluding
22 any liability for prepaid sales tax to be remitted in
23 accordance with Section 2d of this Act, was $10,000 or more
24 during the preceding 4 complete calendar quarters, he shall
25 file a return with the Department each month by the 20th day
26 of the month next following the month during which such tax
27 liability is incurred and shall make payments to the
28 Department on or before the 7th, 15th, 22nd and last day of
29 the month during which such liability is incurred. If the
30 month during which such tax liability is incurred began prior
31 to January 1, 1985, each payment shall be in an amount equal
32 to 1/4 of the taxpayer's actual liability for the month or an
33 amount set by the Department not to exceed 1/4 of the average
34 monthly liability of the taxpayer to the Department for the
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1 preceding 4 complete calendar quarters (excluding the month
2 of highest liability and the month of lowest liability in
3 such 4 quarter period). If the month during which such tax
4 liability is incurred begins on or after January 1, 1985 and
5 prior to January 1, 1987, each payment shall be in an amount
6 equal to 22.5% of the taxpayer's actual liability for the
7 month or 27.5% of the taxpayer's liability for the same
8 calendar month of the preceding year. If the month during
9 which such tax liability is incurred begins on or after
10 January 1, 1987 and prior to January 1, 1988, each payment
11 shall be in an amount equal to 22.5% of the taxpayer's actual
12 liability for the month or 26.25% of the taxpayer's liability
13 for the same calendar month of the preceding year. If the
14 month during which such tax liability is incurred begins on
15 or after January 1, 1988, and prior to January 1, 1989, or
16 begins on or after January 1, 1996, each payment shall be in
17 an amount equal to 22.5% of the taxpayer's actual liability
18 for the month or 25% of the taxpayer's liability for the same
19 calendar month of the preceding year. If the month during
20 which such tax liability is incurred begins on or after
21 January 1, 1989, and prior to January 1, 1996, each payment
22 shall be in an amount equal to 22.5% of the taxpayer's actual
23 liability for the month or 25% of the taxpayer's liability
24 for the same calendar month of the preceding year or 100% of
25 the taxpayer's actual liability for the quarter monthly
26 reporting period. The amount of such quarter monthly
27 payments shall be credited against the final tax liability of
28 the taxpayer's return for that month. Once applicable, the
29 requirement of the making of quarter monthly payments to the
30 Department by taxpayers having an average monthly tax
31 liability of $10,000 or more as determined in the manner
32 provided above shall continue until such taxpayer's average
33 monthly liability to the Department during the preceding 4
34 complete calendar quarters (excluding the month of highest
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1 liability and the month of lowest liability) is less than
2 $9,000, or until such taxpayer's average monthly liability to
3 the Department as computed for each calendar quarter of the 4
4 preceding complete calendar quarter period is less than
5 $10,000. However, if a taxpayer can show the Department that
6 a substantial change in the taxpayer's business has occurred
7 which causes the taxpayer to anticipate that his average
8 monthly tax liability for the reasonably foreseeable future
9 will fall below $10,000, then such taxpayer may petition the
10 Department for a change in such taxpayer's reporting status.
11 The Department shall change such taxpayer's reporting status
12 unless it finds that such change is seasonal in nature and
13 not likely to be long term. If any such quarter monthly
14 payment is not paid at the time or in the amount required by
15 this Section, then the taxpayer shall be liable for penalties
16 and interest on the difference between the minimum amount due
17 as a payment and the amount of such quarter monthly payment
18 actually and timely paid, except insofar as the taxpayer has
19 previously made payments for that month to the Department in
20 excess of the minimum payments previously due as provided in
21 this Section. The Department shall make reasonable rules and
22 regulations to govern the quarter monthly payment amount and
23 quarter monthly payment dates for taxpayers who file on other
24 than a calendar monthly basis.
25 Without regard to whether a taxpayer is required to make
26 quarter monthly payments as specified above, any taxpayer who
27 is required by Section 2d of this Act to collect and remit
28 prepaid taxes and has collected prepaid taxes which average
29 in excess of $25,000 per month during the preceding 2
30 complete calendar quarters, shall file a return with the
31 Department as required by Section 2f and shall make payments
32 to the Department on or before the 7th, 15th, 22nd and last
33 day of the month during which such liability is incurred. If
34 the month during which such tax liability is incurred began
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1 prior to the effective date of this amendatory Act of 1985,
2 each payment shall be in an amount not less than 22.5% of the
3 taxpayer's actual liability under Section 2d. If the month
4 during which such tax liability is incurred begins on or
5 after January 1, 1986, each payment shall be in an amount
6 equal to 22.5% of the taxpayer's actual liability for the
7 month or 27.5% of the taxpayer's liability for the same
8 calendar month of the preceding calendar year. If the month
9 during which such tax liability is incurred begins on or
10 after January 1, 1987, each payment shall be in an amount
11 equal to 22.5% of the taxpayer's actual liability for the
12 month or 26.25% of the taxpayer's liability for the same
13 calendar month of the preceding year. The amount of such
14 quarter monthly payments shall be credited against the final
15 tax liability of the taxpayer's return for that month filed
16 under this Section or Section 2f, as the case may be. Once
17 applicable, the requirement of the making of quarter monthly
18 payments to the Department pursuant to this paragraph shall
19 continue until such taxpayer's average monthly prepaid tax
20 collections during the preceding 2 complete calendar quarters
21 is $25,000 or less. If any such quarter monthly payment is
22 not paid at the time or in the amount required, the taxpayer
23 shall be liable for penalties and interest on such
24 difference, except insofar as the taxpayer has previously
25 made payments for that month in excess of the minimum
26 payments previously due.
27 If any payment provided for in this Section exceeds the
28 taxpayer's liabilities under this Act, the Use Tax Act, the
29 Service Occupation Tax Act and the Service Use Tax Act, as
30 shown on an original monthly return, the Department shall, if
31 requested by the taxpayer, issue to the taxpayer a credit
32 memorandum no later than 30 days after the date of payment.
33 The credit evidenced by such credit memorandum may be
34 assigned by the taxpayer to a similar taxpayer under this
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1 Act, the Use Tax Act, the Service Occupation Tax Act or the
2 Service Use Tax Act, in accordance with reasonable rules and
3 regulations to be prescribed by the Department. If no such
4 request is made, the taxpayer may credit such excess payment
5 against tax liability subsequently to be remitted to the
6 Department under this Act, the Use Tax Act, the Service
7 Occupation Tax Act or the Service Use Tax Act, in accordance
8 with reasonable rules and regulations prescribed by the
9 Department. If the Department subsequently determined that
10 all or any part of the credit taken was not actually due to
11 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
12 shall be reduced by 2.1% or 1.75% of the difference between
13 the credit taken and that actually due, and that taxpayer
14 shall be liable for penalties and interest on such
15 difference.
16 If a retailer of motor fuel is entitled to a credit under
17 Section 2d of this Act which exceeds the taxpayer's liability
18 to the Department under this Act for the month which the
19 taxpayer is filing a return, the Department shall issue the
20 taxpayer a credit memorandum for the excess.
21 Beginning January 1, 1990, each month the Department
22 shall pay into the Local Government Tax Fund, a special fund
23 in the State treasury which is hereby created, the net
24 revenue realized for the preceding month from the 1% tax on
25 sales of food for human consumption which is to be consumed
26 off the premises where it is sold (other than alcoholic
27 beverages, soft drinks and food which has been prepared for
28 immediate consumption) and prescription and nonprescription
29 medicines, drugs, medical appliances and insulin, urine
30 testing materials, syringes and needles used by diabetics.
31 Beginning January 1, 1990, each month the Department
32 shall pay into the County and Mass Transit District Fund, a
33 special fund in the State treasury which is hereby created,
34 4% of the net revenue realized for the preceding month from
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1 the 6.25% general rate.
2 Beginning January 1, 1990, each month the Department
3 shall pay into the Local Government Tax Fund 16% of the net
4 revenue realized for the preceding month from the 6.25%
5 general rate on the selling price of tangible personal
6 property.
7 Of the remainder of the moneys received by the Department
8 pursuant to this Act, (a) 1.75% thereof shall be paid into
9 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
10 and on and after July 1, 1989, 3.8% thereof shall be paid
11 into the Build Illinois Fund; provided, however, that if in
12 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
13 as the case may be, of the moneys received by the Department
14 and required to be paid into the Build Illinois Fund pursuant
15 to this Act, Section 9 of the Use Tax Act, Section 9 of the
16 Service Use Tax Act, and Section 9 of the Service Occupation
17 Tax Act, such Acts being hereinafter called the "Tax Acts"
18 and such aggregate of 2.2% or 3.8%, as the case may be, of
19 moneys being hereinafter called the "Tax Act Amount", and (2)
20 the amount transferred to the Build Illinois Fund from the
21 State and Local Sales Tax Reform Fund shall be less than the
22 Annual Specified Amount (as hereinafter defined), an amount
23 equal to the difference shall be immediately paid into the
24 Build Illinois Fund from other moneys received by the
25 Department pursuant to the Tax Acts; the "Annual Specified
26 Amount" means the amounts specified below for fiscal years
27 1986 through 1993:
28 Fiscal Year Annual Specified Amount
29 1986 $54,800,000
30 1987 $76,650,000
31 1988 $80,480,000
32 1989 $88,510,000
33 1990 $115,330,000
34 1991 $145,470,000
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1 1992 $182,730,000
2 1993 $206,520,000;
3 and means the Certified Annual Debt Service Requirement (as
4 defined in Section 13 of the Build Illinois Bond Act) or the
5 Tax Act Amount, whichever is greater, for fiscal year 1994
6 and each fiscal year thereafter; and further provided, that
7 if on the last business day of any month the sum of (1) the
8 Tax Act Amount required to be deposited into the Build
9 Illinois Bond Account in the Build Illinois Fund during such
10 month and (2) the amount transferred to the Build Illinois
11 Fund from the State and Local Sales Tax Reform Fund shall
12 have been less than 1/12 of the Annual Specified Amount, an
13 amount equal to the difference shall be immediately paid into
14 the Build Illinois Fund from other moneys received by the
15 Department pursuant to the Tax Acts; and, further provided,
16 that in no event shall the payments required under the
17 preceding proviso result in aggregate payments into the Build
18 Illinois Fund pursuant to this clause (b) for any fiscal year
19 in excess of the greater of (i) the Tax Act Amount or (ii)
20 the Annual Specified Amount for such fiscal year. The
21 amounts payable into the Build Illinois Fund under clause (b)
22 of the first sentence in this paragraph shall be payable only
23 until such time as the aggregate amount on deposit under each
24 trust indenture securing Bonds issued and outstanding
25 pursuant to the Build Illinois Bond Act is sufficient, taking
26 into account any future investment income, to fully provide,
27 in accordance with such indenture, for the defeasance of or
28 the payment of the principal of, premium, if any, and
29 interest on the Bonds secured by such indenture and on any
30 Bonds expected to be issued thereafter and all fees and costs
31 payable with respect thereto, all as certified by the
32 Director of the Bureau of the Budget. If on the last
33 business day of any month in which Bonds are outstanding
34 pursuant to the Build Illinois Bond Act, the aggregate of
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1 moneys deposited in the Build Illinois Bond Account in the
2 Build Illinois Fund in such month shall be less than the
3 amount required to be transferred in such month from the
4 Build Illinois Bond Account to the Build Illinois Bond
5 Retirement and Interest Fund pursuant to Section 13 of the
6 Build Illinois Bond Act, an amount equal to such deficiency
7 shall be immediately paid from other moneys received by the
8 Department pursuant to the Tax Acts to the Build Illinois
9 Fund; provided, however, that any amounts paid to the Build
10 Illinois Fund in any fiscal year pursuant to this sentence
11 shall be deemed to constitute payments pursuant to clause (b)
12 of the first sentence of this paragraph and shall reduce the
13 amount otherwise payable for such fiscal year pursuant to
14 that clause (b). The moneys received by the Department
15 pursuant to this Act and required to be deposited into the
16 Build Illinois Fund are subject to the pledge, claim and
17 charge set forth in Section 12 of the Build Illinois Bond
18 Act.
19 Subject to payment of amounts into the Build Illinois
20 Fund as provided in the preceding paragraph or in any
21 amendment thereto hereafter enacted, the following specified
22 monthly installment of the amount requested in the
23 certificate of the Chairman of the Metropolitan Pier and
24 Exposition Authority provided under Section 8.25f of the
25 State Finance Act, but not in excess of sums designated as
26 "Total Deposit", shall be deposited in the aggregate from
27 collections under Section 9 of the Use Tax Act, Section 9 of
28 the Service Use Tax Act, Section 9 of the Service Occupation
29 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
30 into the McCormick Place Expansion Project Fund in the
31 specified fiscal years.
32 Fiscal Year Total Deposit
33 1993 $0
34 1994 53,000,000
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1 1995 58,000,000
2 1996 61,000,000
3 1997 64,000,000
4 1998 68,000,000
5 1999 71,000,000
6 2000 75,000,000
7 2001 80,000,000
8 2002 84,000,000
9 2003 89,000,000
10 2004 93,000,000
11 2005 97,000,000
12 2006 102,000,000
13 2007 and 106,000,000
14 each fiscal year
15 thereafter that bonds
16 are outstanding under
17 Section 13.2 of the
18 Metropolitan Pier and
19 Exposition Authority
20 Act, but not after fiscal year 2029.
21 Beginning July 20, 1993 and in each month of each fiscal
22 year thereafter, one-eighth of the amount requested in the
23 certificate of the Chairman of the Metropolitan Pier and
24 Exposition Authority for that fiscal year, less the amount
25 deposited into the McCormick Place Expansion Project Fund by
26 the State Treasurer in the respective month under subsection
27 (g) of Section 13 of the Metropolitan Pier and Exposition
28 Authority Act, plus cumulative deficiencies in the deposits
29 required under this Section for previous months and years,
30 shall be deposited into the McCormick Place Expansion Project
31 Fund, until the full amount requested for the fiscal year,
32 but not in excess of the amount specified above as "Total
33 Deposit", has been deposited.
34 Subject to payment of amounts into the Build Illinois
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1 Fund and the McCormick Place Expansion Project Fund pursuant
2 to the preceding paragraphs or in any amendment thereto
3 hereafter enacted, each month the Department shall pay into
4 the Local Government Distributive Fund 0.4% of the net
5 revenue realized for the preceding month from the 5% general
6 rate or 0.4% of 80% of the net revenue realized for the
7 preceding month from the 6.25% general rate, as the case may
8 be, on the selling price of tangible personal property which
9 amount shall, subject to appropriation, be distributed as
10 provided in Section 2 of the State Revenue Sharing Act. No
11 payments or distributions pursuant to this paragraph shall be
12 made if the tax imposed by this Act on photoprocessing
13 products is declared unconstitutional, or if the proceeds
14 from such tax are unavailable for distribution because of
15 litigation.
16 Subject to payment of amounts into the Build Illinois
17 Fund, the McCormick Place Expansion Project to the preceding
18 paragraphs or in any amendments thereto hereafter enacted,
19 beginning July 1, 1993, the Department shall each month pay
20 into the Illinois Tax Increment Fund 0.27% of 80% of the net
21 revenue realized for the preceding month from the 6.25%
22 general rate on the selling price of tangible personal
23 property.
24 Of the remainder of the moneys received by the Department
25 pursuant to this Act, 75% thereof shall be paid into the
26 State Treasury and 25% shall be reserved in a special account
27 and used only for the transfer to the Common School Fund as
28 part of the monthly transfer from the General Revenue Fund in
29 accordance with Section 8a of the State Finance Act.
30 The Department may, upon separate written notice to a
31 taxpayer, require the taxpayer to prepare and file with the
32 Department on a form prescribed by the Department within not
33 less than 60 days after receipt of the notice an annual
34 information return for the tax year specified in the notice.
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1 Such annual return to the Department shall include a
2 statement of gross receipts as shown by the retailer's last
3 Federal income tax return. If the total receipts of the
4 business as reported in the Federal income tax return do not
5 agree with the gross receipts reported to the Department of
6 Revenue for the same period, the retailer shall attach to his
7 annual return a schedule showing a reconciliation of the 2
8 amounts and the reasons for the difference. The retailer's
9 annual return to the Department shall also disclose the cost
10 of goods sold by the retailer during the year covered by such
11 return, opening and closing inventories of such goods for
12 such year, costs of goods used from stock or taken from stock
13 and given away by the retailer during such year, payroll
14 information of the retailer's business during such year and
15 any additional reasonable information which the Department
16 deems would be helpful in determining the accuracy of the
17 monthly, quarterly or annual returns filed by such retailer
18 as provided for in this Section.
19 If the annual information return required by this Section
20 is not filed when and as required, the taxpayer shall be
21 liable as follows:
22 (i) Until January 1, 1994, the taxpayer shall be
23 liable for a penalty equal to 1/6 of 1% of the tax due
24 from such taxpayer under this Act during the period to be
25 covered by the annual return for each month or fraction
26 of a month until such return is filed as required, the
27 penalty to be assessed and collected in the same manner
28 as any other penalty provided for in this Act.
29 (ii) On and after January 1, 1994, the taxpayer
30 shall be liable for a penalty as described in Section 3-4
31 of the Uniform Penalty and Interest Act.
32 The chief executive officer, proprietor, owner or highest
33 ranking manager shall sign the annual return to certify the
34 accuracy of the information contained therein. Any person
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1 who willfully signs the annual return containing false or
2 inaccurate information shall be guilty of perjury and
3 punished accordingly. The annual return form prescribed by
4 the Department shall include a warning that the person
5 signing the return may be liable for perjury.
6 The provisions of this Section concerning the filing of
7 an annual information return do not apply to a retailer who
8 is not required to file an income tax return with the United
9 States Government.
10 As soon as possible after the first day of each month,
11 upon certification of the Department of Revenue, the
12 Comptroller shall order transferred and the Treasurer shall
13 transfer from the General Revenue Fund to the Motor Fuel Tax
14 Fund an amount equal to 1.7% of 80% of the net revenue
15 realized under this Act for the second preceding month;
16 except that this transfer shall not be made for the months
17 February through June, 1992.
18 Net revenue realized for a month shall be the revenue
19 collected by the State pursuant to this Act, less the amount
20 paid out during that month as refunds to taxpayers for
21 overpayment of liability.
22 For greater simplicity of administration, manufacturers,
23 importers and wholesalers whose products are sold at retail
24 in Illinois by numerous retailers, and who wish to do so, may
25 assume the responsibility for accounting and paying to the
26 Department all tax accruing under this Act with respect to
27 such sales, if the retailers who are affected do not make
28 written objection to the Department to this arrangement.
29 Any person who promotes, organizes, provides retail
30 selling space for concessionaires or other types of sellers
31 at the Illinois State Fair, DuQuoin State Fair, county fairs,
32 local fairs, art shows, flea markets and similar exhibitions
33 or events, including any transient merchant as defined by
34 Section 2 of the Transient Merchant Act of 1987, is required
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1 to file a report with the Department providing the name of
2 the merchant's business, the name of the person or persons
3 engaged in merchant's business, the permanent address and
4 Illinois Retailers Occupation Tax Registration Number of the
5 merchant, the dates and location of the event and other
6 reasonable information that the Department may require. The
7 report must be filed not later than the 20th day of the month
8 next following the month during which the event with retail
9 sales was held. Any person who fails to file a report
10 required by this Section commits a business offense and is
11 subject to a fine not to exceed $250.
12 Any person engaged in the business of selling tangible
13 personal property at retail as a concessionaire or other type
14 of seller at the Illinois State Fair, county fairs, art
15 shows, flea markets and similar exhibitions or events, or any
16 transient merchants, as defined by Section 2 of the Transient
17 Merchant Act of 1987, may be required to make a daily report
18 of the amount of such sales to the Department and to make a
19 daily payment of the full amount of tax due. The Department
20 shall impose this requirement when it finds that there is a
21 significant risk of loss of revenue to the State at such an
22 exhibition or event. Such a finding shall be based on
23 evidence that a substantial number of concessionaires or
24 other sellers who are not residents of Illinois will be
25 engaging in the business of selling tangible personal
26 property at retail at the exhibition or event, or other
27 evidence of a significant risk of loss of revenue to the
28 State. The Department shall notify concessionaires and other
29 sellers affected by the imposition of this requirement. In
30 the absence of notification by the Department, the
31 concessionaires and other sellers shall file their returns as
32 otherwise required in this Section.
33 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
34 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
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1 1-1-99; 90-612, eff. 7-8-98.)
2 (35 ILCS 120/5k) (from Ch. 120, par. 444k)
3 Sec. 5k. Each retailer whose place a business is within
4 a county or municipality which has established an Enterprise
5 Zone pursuant to the "Illinois Enterprise Zone Act" and who
6 makes a sale of building materials to be incorporated into
7 real estate in such enterprise zone by remodeling,
8 rehabilitation or new construction, may deduct receipts from
9 such sales when calculating the tax imposed by this Act. The
10 deduction allowed by this Section for the sale of building
11 materials may be limited, to the extent authorized by
12 ordinance, adopted after the effective date of this
13 amendatory Act of 1992, by the municipality or county that
14 created the enterprise zone. The corporate authorities of
15 any municipality or county that adopts an ordinance or
16 resolution imposing or changing any limitation on the
17 enterprise zone exemption for building materials shall
18 transmit to the Department of Revenue on or not later than 5
19 days after publication, as provided by law, a certified copy
20 of the ordinance or resolution imposing or changing those
21 limitations, whereupon the Department of Revenue shall
22 proceed to administer and enforce those limitations effective
23 the first day of the second calendar month next following
24 date of receipt by the Department of the certified ordinance
25 or resolution.
26 (Source: P.A. 87-848.)
27 Section 140. The Counties Code is amended by re-enacting
28 Sections 5-1006, 5-1007, 5-1008, 5-1009, and 5-1024 as
29 follows:
30 (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
31 Sec. 5-1006. Home Rule County Retailers' Occupation Tax
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1 Law. Any county that is a home rule unit may impose a tax
2 upon all persons engaged in the business of selling tangible
3 personal property, other than an item of tangible personal
4 property titled or registered with an agency of this State's
5 government, at retail in the county on the gross receipts
6 from such sales made in the course of their business. If
7 imposed, this tax shall only be imposed in 1/4% increments.
8 On and after September 1, 1991, this additional tax may not
9 be imposed on the sales of food for human consumption which
10 is to be consumed off the premises where it is sold (other
11 than alcoholic beverages, soft drinks and food which has been
12 prepared for immediate consumption) and prescription and
13 nonprescription medicines, drugs, medical appliances and
14 insulin, urine testing materials, syringes and needles used
15 by diabetics. The tax imposed by a home rule county pursuant
16 to this Section and all civil penalties that may be assessed
17 as an incident thereof shall be collected and enforced by the
18 State Department of Revenue. The certificate of registration
19 that is issued by the Department to a retailer under the
20 Retailers' Occupation Tax Act shall permit the retailer to
21 engage in a business that is taxable under any ordinance or
22 resolution enacted pursuant to this Section without
23 registering separately with the Department under such
24 ordinance or resolution or under this Section. The
25 Department shall have full power to administer and enforce
26 this Section; to collect all taxes and penalties due
27 hereunder; to dispose of taxes and penalties so collected in
28 the manner hereinafter provided; and to determine all rights
29 to credit memoranda arising on account of the erroneous
30 payment of tax or penalty hereunder. In the administration
31 of, and compliance with, this Section, the Department and
32 persons who are subject to this Section shall have the same
33 rights, remedies, privileges, immunities, powers and duties,
34 and be subject to the same conditions, restrictions,
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1 limitations, penalties and definitions of terms, and employ
2 the same modes of procedure, as are prescribed in Sections 1,
3 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in
4 respect to all provisions therein other than the State rate
5 of tax), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
6 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
7 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
8 Penalty and Interest Act, as fully as if those provisions
9 were set forth herein.
10 No tax may be imposed by a home rule county pursuant to
11 this Section unless the county also imposes a tax at the same
12 rate pursuant to Section 5-1007.
13 Persons subject to any tax imposed pursuant to the
14 authority granted in this Section may reimburse themselves
15 for their seller's tax liability hereunder by separately
16 stating such tax as an additional charge, which charge may be
17 stated in combination, in a single amount, with State tax
18 which sellers are required to collect under the Use Tax Act,
19 pursuant to such bracket schedules as the Department may
20 prescribe.
21 Whenever the Department determines that a refund should
22 be made under this Section to a claimant instead of issuing a
23 credit memorandum, the Department shall notify the State
24 Comptroller, who shall cause the order to be drawn for the
25 amount specified and to the person named in the notification
26 from the Department. The refund shall be paid by the State
27 Treasurer out of the home rule county retailers' occupation
28 tax fund.
29 The Department shall forthwith pay over to the State
30 Treasurer, ex officio, as trustee, all taxes and penalties
31 collected hereunder. On or before the 25th day of each
32 calendar month, the Department shall prepare and certify to
33 the Comptroller the disbursement of stated sums of money to
34 named counties, the counties to be those from which retailers
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1 have paid taxes or penalties hereunder to the Department
2 during the second preceding calendar month. The amount to be
3 paid to each county shall be the amount (not including credit
4 memoranda) collected hereunder during the second preceding
5 calendar month by the Department plus an amount the
6 Department determines is necessary to offset any amounts that
7 were erroneously paid to a different taxing body, and not
8 including an amount equal to the amount of refunds made
9 during the second preceding calendar month by the Department
10 on behalf of such county, and not including any amount which
11 the Department determines is necessary to offset any amounts
12 which were payable to a different taxing body but were
13 erroneously paid to the county. Within 10 days after receipt,
14 by the Comptroller, of the disbursement certification to the
15 counties provided for in this Section to be given to the
16 Comptroller by the Department, the Comptroller shall cause
17 the orders to be drawn for the respective amounts in
18 accordance with the directions contained in the
19 certification.
20 In addition to the disbursement required by the preceding
21 paragraph, an allocation shall be made in March of each year
22 to each county that received more than $500,000 in
23 disbursements under the preceding paragraph in the preceding
24 calendar year. The allocation shall be in an amount equal to
25 the average monthly distribution made to each such county
26 under the preceding paragraph during the preceding calendar
27 year (excluding the 2 months of highest receipts). The
28 distribution made in March of each year subsequent to the
29 year in which an allocation was made pursuant to 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 shall prepare and
33 certify to the Comptroller for disbursement the allocations
34 made in accordance with this paragraph.
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1 For the purpose of determining the local governmental
2 unit whose tax is applicable, a retail sale by a producer of
3 coal or other mineral mined in Illinois is a sale at retail
4 at the place where the coal or other mineral mined in
5 Illinois is extracted from the earth. This paragraph does
6 not apply to coal or other mineral when it is delivered or
7 shipped by the seller to the purchaser at a point outside
8 Illinois so that the sale is exempt under the United States
9 Constitution as a sale in interstate or foreign commerce.
10 Nothing in this Section shall be construed to authorize a
11 county to impose a tax upon the privilege of engaging in any
12 business which under the Constitution of the United States
13 may not be made the subject of taxation by this State.
14 An ordinance or resolution imposing or discontinuing a
15 tax hereunder or effecting a change in the rate thereof shall
16 be adopted and a certified copy thereof filed with the
17 Department on or before the first day of June, whereupon the
18 Department shall proceed to administer and enforce this
19 Section as of the first day of September next following such
20 adoption and filing. Beginning January 1, 1992, an ordinance
21 or resolution imposing or discontinuing the tax hereunder or
22 effecting a change in the rate thereof shall be adopted and a
23 certified copy thereof filed with the Department on or before
24 the first day of July, whereupon the Department shall proceed
25 to administer and enforce this Section as of the first day of
26 October next following such adoption and filing. Beginning
27 January 1, 1993, an ordinance or resolution imposing or
28 discontinuing the tax hereunder or effecting a change in the
29 rate thereof shall be adopted and a certified copy thereof
30 filed with the Department on or before the first day of
31 October, whereupon the Department shall proceed to administer
32 and enforce this Section as of the first day of January next
33 following such adoption and filing. Beginning April 1, 1998,
34 an ordinance or resolution imposing or discontinuing the tax
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1 hereunder or effecting a change in the rate thereof shall
2 either (i) be adopted and a certified copy thereof filed with
3 the Department on or before the first day of April, whereupon
4 the Department shall proceed to administer and enforce this
5 Section as of the first day of July next following the
6 adoption and filing; or (ii) be adopted and a certified copy
7 thereof filed with the Department on or before the first day
8 of October, whereupon the Department shall proceed to
9 administer and enforce this Section as of the first day of
10 January next following the adoption and filing.
11 When certifying the amount of a monthly disbursement to a
12 county under this Section, the Department shall increase or
13 decrease such amount by an amount necessary to offset any
14 misallocation of previous disbursements. The offset amount
15 shall be the amount erroneously disbursed within the previous
16 6 months from the time a misallocation is discovered.
17 This Section shall be known and may be cited as the Home
18 Rule County Retailers' Occupation Tax Law.
19 (Source: P.A. 90-689, eff. 7-31-98.)
20 (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
21 Sec. 5-1007. Home Rule County Service Occupation Tax
22 Law. The corporate authorities of a home rule county may
23 impose a tax upon all persons engaged, in such county, in the
24 business of making sales of service at the same rate of tax
25 imposed pursuant to Section 5-1006 of the selling price of
26 all tangible personal property transferred by such servicemen
27 either in the form of tangible personal property or in the
28 form of real estate as an incident to a sale of service. If
29 imposed, such tax shall only be imposed in 1/4% increments.
30 On and after September 1, 1991, this additional tax may not
31 be imposed on the sales of food for human consumption which
32 is to be consumed off the premises where it is sold (other
33 than alcoholic beverages, soft drinks and food which has been
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1 prepared for immediate consumption) and prescription and
2 nonprescription medicines, drugs, medical appliances and
3 insulin, urine testing materials, syringes and needles used
4 by diabetics. The tax imposed by a home rule county pursuant
5 to this Section and all civil penalties that may be assessed
6 as an incident thereof shall be collected and enforced by the
7 State Department of Revenue. The certificate of registration
8 which is issued by the Department to a retailer under the
9 Retailers' Occupation Tax Act or under the Service Occupation
10 Tax Act shall permit such registrant to engage in a business
11 which is taxable under any ordinance or resolution enacted
12 pursuant to this Section without registering separately with
13 the Department under such ordinance or resolution or under
14 this Section. The Department shall have full power to
15 administer and enforce this Section; to collect all taxes and
16 penalties due hereunder; to dispose of taxes and penalties so
17 collected in the manner hereinafter provided; and to
18 determine all rights to credit memoranda arising on account
19 of the erroneous payment of tax or penalty hereunder. In the
20 administration of, and compliance with, this Section the
21 Department and persons who are subject to this Section shall
22 have the same rights, remedies, privileges, immunities,
23 powers and duties, and be subject to the same conditions,
24 restrictions, limitations, penalties and definitions of
25 terms, and employ the same modes of procedure, as are
26 prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
27 respect to all provisions therein other than the State rate
28 of tax), 4 (except that the reference to the State shall be
29 to the taxing county), 5, 7, 8 (except that the jurisdiction
30 to which the tax shall be a debt to the extent indicated in
31 that Section 8 shall be the taxing county), 9 (except as to
32 the disposition of taxes and penalties collected, and except
33 that the returned merchandise credit for this county tax may
34 not be taken against any State tax), 10, 11, 12 (except the
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1 reference therein to Section 2b of the Retailers' Occupation
2 Tax Act), 13 (except that any reference to the State shall
3 mean the taxing county), the first paragraph of Section 15,
4 16, 17, 18, 19 and 20 of the Service Occupation Tax Act and
5 Section 3-7 of the Uniform Penalty and Interest Act, as fully
6 as if those provisions were set forth herein.
7 No tax may be imposed by a home rule county pursuant to
8 this Section unless such county also imposes a tax at the
9 same rate pursuant to Section 5-1006.
10 Persons subject to any tax imposed pursuant to the
11 authority granted in this Section may reimburse themselves
12 for their serviceman's tax liability hereunder by separately
13 stating such tax as an additional charge, which charge may be
14 stated in combination, in a single amount, with State tax
15 which servicemen are authorized to collect under the Service
16 Use Tax Act, pursuant to such bracket schedules as the
17 Department may prescribe.
18 Whenever the Department determines that a refund should
19 be made under this Section to a claimant instead of issuing
20 credit memorandum, the Department shall notify the State
21 Comptroller, who shall cause the order to be drawn for the
22 amount specified, and to the person named, in such
23 notification from the Department. Such refund shall be paid
24 by the State Treasurer out of the home rule county retailers'
25 occupation tax fund.
26 The Department shall forthwith pay over to the State
27 Treasurer, ex-officio, as trustee, all taxes and penalties
28 collected hereunder. On or before the 25th day of each
29 calendar month, the Department shall prepare and certify to
30 the Comptroller the disbursement of stated sums of money to
31 named counties, the counties to be those from which suppliers
32 and servicemen have paid taxes or penalties hereunder to the
33 Department during the second preceding calendar month. The
34 amount to be paid to each county shall be the amount (not
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1 including credit memoranda) collected hereunder during the
2 second preceding calendar month by the Department, and not
3 including an amount equal to the amount of refunds made
4 during the second preceding calendar month by the Department
5 on behalf of such county. Within 10 days after receipt, by
6 the Comptroller, of the disbursement certification to the
7 counties provided for in this Section to be given to the
8 Comptroller by the Department, the Comptroller shall cause
9 the orders to be drawn for the respective amounts in
10 accordance with the directions contained in such
11 certification.
12 In addition to the disbursement required by the preceding
13 paragraph, an allocation shall be made in each year to each
14 county which received more than $500,000 in disbursements
15 under the preceding paragraph in the preceding calendar year.
16 The allocation shall be in an amount equal to the average
17 monthly distribution made to each such county under the
18 preceding paragraph during the preceding calendar year
19 (excluding the 2 months of highest receipts). The
20 distribution made in March of each year subsequent to the
21 year in which an allocation was made pursuant to this
22 paragraph and the preceding paragraph shall be reduced by the
23 amount allocated and disbursed under this paragraph in the
24 preceding calendar year. The Department shall prepare and
25 certify to the Comptroller for disbursement the allocations
26 made in accordance with this paragraph.
27 Nothing in this Section shall be construed to authorize a
28 county to impose a tax upon the privilege of engaging in any
29 business which under the Constitution of the United States
30 may not be made the subject of taxation by this State.
31 An ordinance or resolution imposing or discontinuing a
32 tax hereunder or effecting a change in the rate thereof shall
33 be adopted and a certified copy thereof filed with the
34 Department on or before the first day of June, whereupon the
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1 Department shall proceed to administer and enforce this
2 Section as of the first day of September next following such
3 adoption and filing. Beginning January 1, 1992, an ordinance
4 or resolution imposing or discontinuing the tax hereunder or
5 effecting a change in the rate thereof shall be adopted and a
6 certified copy thereof filed with the Department on or before
7 the first day of July, whereupon the Department shall proceed
8 to administer and enforce this Section as of the first day of
9 October next following such adoption and filing. Beginning
10 January 1, 1993, an ordinance or resolution imposing or
11 discontinuing the tax hereunder or effecting a change in the
12 rate thereof shall be adopted and a certified copy thereof
13 filed with the Department on or before the first day of
14 October, whereupon the Department shall proceed to administer
15 and enforce this Section as of the first day of January next
16 following such adoption and filing. Beginning April 1, 1998,
17 an ordinance or resolution imposing or discontinuing the tax
18 hereunder or effecting a change in the rate thereof shall
19 either (i) be adopted and a certified copy thereof filed with
20 the Department on or before the first day of April, whereupon
21 the Department shall proceed to administer and enforce this
22 Section as of the first day of July next following the
23 adoption and filing; or (ii) 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 the adoption and filing.
28 This Section shall be known and may be cited as the Home
29 Rule County Service Occupation Tax Law.
30 (Source: P.A. 90-689, eff. 7-31-98.)
31 (55 ILCS 5/5-1008) (from Ch. 34, par. 5-1008)
32 Sec. 5-1008. Home Rule County Use Tax. The corporate
33 authorities of a home rule county may impose a tax upon the
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1 privilege of using, in such county, any item of tangible
2 personal property which is purchased at retail from a
3 retailer, and which is titled or registered to a purchaser
4 residing within the corporate limits of such home rule county
5 with an agency of this State's government, at a rate which is
6 an increment of 1/4% and based on the selling price of such
7 tangible personal property, as "selling price" is defined in
8 the "Use Tax Act", approved July 14, 1955, as amended. Such
9 tax shall be collected from persons whose Illinois address
10 for titling or registration purposes is given as being in
11 such county. Such tax shall be collected by the county
12 imposing such tax.
13 This Section shall be known and may be cited as the "Home
14 Rule County Use Tax Law".
15 (Source: P.A. 86-962.)
16 (55 ILCS 5/5-1009) (from Ch. 34, par. 5-1009)
17 Sec. 5-1009. Limitation on home rule powers. Except as
18 provided in Sections 5-1006, 5-1006.5, 5-1007 and 5-1008, on
19 and after September 1, 1990, no home rule county has the
20 authority to impose, pursuant to its home rule authority, a
21 retailer's occupation tax, service occupation tax, use tax,
22 sales tax or other tax on the use, sale or purchase of
23 tangible personal property based on the gross receipts from
24 such sales or the selling or purchase price of said tangible
25 personal property. Notwithstanding the foregoing, this
26 Section does not preempt any home rule imposed tax such as
27 the following: (1) a tax on alcoholic beverages, whether
28 based on gross receipts, volume sold or any other
29 measurement; (2) a tax based on the number of units of
30 cigarettes or tobacco products; (3) a tax, however measured,
31 based on the use of a hotel or motel room or similar
32 facility; (4) a tax, however measured, on the sale or
33 transfer of real property; (5) a tax, however measured, on
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1 lease receipts; (6) a tax on food prepared for immediate
2 consumption and on alcoholic beverages sold by a business
3 which provides for on premise consumption of said food or
4 alcoholic beverages; or (7) other taxes not based on the
5 selling or purchase price or gross receipts from the use,
6 sale or purchase of tangible personal property. This Section
7 is a limitation, pursuant to subsection (g) of Section 6 of
8 Article VII of the Illinois Constitution, on the power of
9 home rule units to tax.
10 (Source: P.A. 89-107, eff. 1-1-96.)
11 (55 ILCS 5/5-1024) (from Ch. 34, par. 5-1024)
12 Sec. 5-1024. Taxes. A county board may cause to be
13 levied and collected annually, except as hereinafter
14 provided, taxes for county purposes, including all purposes
15 for which money may be raised by the county by taxation, in
16 counties having 80,000 or more but less than 3,000,000
17 inhabitants at a rate not exceeding .25%, of the value as
18 equalized or assessed by the Department of Revenue; in
19 counties with less than 80,000 but more than 15,000
20 inhabitants at a rate not exceeding .27%, of the value as
21 equalized or assessed by the Department of Revenue; in
22 counties with less than 80,000 inhabitants which have
23 authorized a tax by referendum under Section 7-2 of the
24 Juvenile Court Act prior to the effective date of this
25 amendatory Act of 1985, at a rate not exceeding .32%, of the
26 value as equalized or assessed by the Department of Revenue;
27 and in counties with 15,000 or fewer inhabitants at a rate
28 not exceeding .37%, of the value as equalized or assessed by
29 the Department of Revenue; and in counties having 3,000,000
30 or more inhabitants for each even numbered year, subject to
31 the abatement requirements hereinafter provided, at a rate
32 not exceeding .39% of the value, as equalized or assessed by
33 the Department of Revenue, and for each odd numbered year,
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1 subject to the abatement requirements hereinafter provided,
2 at a rate not exceeding .35% of the value as equalized or
3 assessed by the Department of Revenue, except taxes for the
4 payment of interest on and principal of bonded indebtedness
5 heretofore duly authorized for the construction of State aid
6 roads in the county as defined in "An Act to revise the law
7 in relation to roads and bridges", approved June 27, 1913, or
8 for the construction of county highways as defined in the
9 Illinois Highway Code, and except taxes for the payment of
10 interest on and principal of bonded indebtedness duly
11 authorized without a vote of the people of the county, and
12 except taxes authorized as additional by a vote of the people
13 of the county, and except taxes for working cash fund
14 purposes, and except taxes as authorized by Sections 5-601,
15 5-602, 5-603, 5-604 and 6-512 of the Illinois Highway Code,
16 and except taxes authorized under Section 7 of the Village
17 Library Act, and except taxes levied to pay the annual rent
18 payments due under a lease entered into by the county with a
19 Public Building Commission as authorized by Section 18 of the
20 Public Building Commission Act, and except taxes levied under
21 Division 6-3, and except taxes levied for general assistance
22 for needy persons in counties under commission form of
23 government and except taxes levied under the County Care for
24 Persons with Developmental Disabilities Act, and except taxes
25 levied under the Community Mental Health Act, and except
26 taxes levied under Section 5-1025 to pay the expenses of
27 elections and except taxes levied under "An Act to provide
28 the manner of levying or imposing taxes for the provision of
29 special services to areas within the boundaries of home rule
30 units and non-home rule municipalities and counties",
31 approved September 21, 1973, and except taxes levied under
32 Section 3a of the Revenue Act of 1939 for the purposes of
33 helping to pay for the expenses of the assessor's office, and
34 except taxes levied under Division 5-21, and except taxes
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1 levied pursuant to Section 19 of "The Illinois Emergency
2 Services and Disaster Agency Act of 1975", as now or
3 hereafter amended, and except taxes levied pursuant to
4 Division 5-23, and except taxes levied under Section 5 of the
5 County Shelter Care and Detention Home Act, and except taxes
6 levied under the Children's Advocacy Center Act, and except
7 taxes levied under Section 9-107 of the Local Governmental
8 and Governmental Employees Tort Immunity Act.
9 Those taxes a county has levied and excepted from the
10 rate limitation imposed by this Section or Section 25.05 of
11 "An Act to revise the law in relation to counties", approved
12 March 31, 1874, in reliance on this amendatory Act of 1994
13 are not invalid because of any provision of this Section that
14 may be construed to or may have been construed to restrict or
15 limit those taxes levied and those taxes are hereby
16 validated. This validation of taxes levied applies to all
17 cases pending on or after the effective date of this
18 amendatory Act of 1994.
19 Nothing contained in this amendatory Act of 1994 shall be
20 construed to affect the application of the Property Tax
21 Extension Limitation Law.
22 Any tax levied for general assistance for needy persons
23 in any county in addition to and in excess of the maximum
24 levy permitted by this Section for general county purposes
25 shall be paid into a special fund in the county treasury and
26 used only for the purposes for which it is levied except that
27 any excess in such fund over the amount needed for general
28 assistance may be used for County Nursing Home purposes and
29 shall not exceed .10% of the value, as equalized or assessed
30 by the Department of Revenue. Any taxes levied for general
31 assistance pursuant to this Section may also be used for the
32 payment of warrants issued against and in anticipation of
33 such taxes and accrued interest thereon and may also be used
34 for the payment of costs of administering such general
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1 assistance.
2 In counties having 3,000,000 or more inhabitants, taxes
3 levied for any year for any purpose or purposes, except
4 amounts levied for the payment of bonded indebtedness or
5 interest thereon and for pension fund purpose, and except
6 taxes levied to pay the annual rent payments due under a
7 lease entered into by the county with a Public Building
8 Commission as authorized by Section 18 of the Public Building
9 Commission Act, are subject to the limitation that they shall
10 not exceed the estimated amount of taxes to be levied for the
11 year for the purpose or purposes as determined in accordance
12 with Section 6-24001 and set forth in the annual
13 appropriation bill of the county and in ascertaining the rate
14 per cent that will produce the amount of any tax levied in
15 any county, the county clerk shall not add to the tax or rate
16 any sum or amount to cover the loss and cost of collecting
17 the tax, except in the case of amounts levied for the payment
18 of bonded indebtedness or interest thereon, and in the case
19 of amounts levied for pension fund purposes, and except taxes
20 levied to pay the annual rent payments due under a lease
21 entered into by the county with a Public Building Commission
22 as authorized by Section 18 of the Public Building Commission
23 Act.
24 In counties having a population of 3,000,000 or more
25 inhabitants, the county clerk shall in each even numbered
26 year, before extending the county tax for the year, reduce
27 the levy for county purposes for the year (exclusive of
28 levies for payment of indebtedness and payment of interest on
29 and principal of bonded indebtedness as aforesaid, and
30 exclusive of county highway taxes as aforesaid, and exclusive
31 of pension fund taxes, and except taxes levied to pay the
32 annual rent payments due under a lease entered into by the
33 county with a Public Building Commission as authorized by
34 Section 18 of the Public Building Commission Act) in the
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1 manner described and in an amount to be determined as
2 follows: If the amount received from the collection of the
3 tax levied in the last preceding even numbered year for
4 county purposes as aforesaid, as shown by the county
5 treasurer's final settlement for the last preceding even
6 numbered year and also by subsequent receipts of delinquent
7 taxes for the county purposes fund levied for the last
8 preceding even numbered year, equals or exceeds the amount
9 produced by multiplying the rate extended for the county
10 purposes for the last preceding even numbered year by the
11 total assessed valuation of all property in the county used
12 in the year for purposes of state and county taxes, and by
13 deducting therefrom the amount appropriated to cover the loss
14 and cost of collecting taxes to be levied for the county
15 purposes fund for the last preceding even numbered year, the
16 clerk in determining the rate per cent to be extended for the
17 county purposes fund shall deduct from the amount of the levy
18 certified to him for county purposes as aforesaid for even
19 numbered years the amount received by the county clerk or
20 withheld by the county treasurer from other municipal
21 corporations within the county as their pro rata share of
22 election expenses for the last preceding even numbered year,
23 as authorized in Sections 13-11, 13-12, 13-13 and 16-2 of the
24 Election Code, and the clerk in these counties shall extend
25 only the net amount remaining after such deductions.
26 The foregoing limitations upon tax rates, insofar as they
27 are applicable to counties having less than 3,000,000
28 inhabitants, may be increased or decreased under the
29 referendum provisions of the General Revenue Law of Illinois
30 and there shall be no limit on the rate of tax for county
31 purposes that may be levied by a county so long as any
32 increase in the rate is authorized by referendum in that
33 county.
34 Any county having a population of less than 3,000,000
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1 inhabitants that has determined to change its fiscal year
2 may, as a means of effectuating a change, instead of levying
3 taxes for a one-year period, levy taxes for a period greater
4 or less than a year as may be necessary.
5 In counties having less than 3,000,000 inhabitants, in
6 ascertaining the rate per cent that will produce the amount
7 of any tax levied in that county, the County Clerk shall not
8 add to the tax or rate any sum or amount to cover the loss
9 and cost of collecting the tax except in the case of amounts
10 levied for the payment of bonded indebtedness or interest
11 thereon and in the case of amounts levied for pension fund
12 purposes and except taxes levied to pay the annual rent
13 payments due under a lease entered into by the county with a
14 Public Building Commission as authorized by Section 18 of the
15 Public Building Commission Act.
16 A county shall not have its maximum tax rate reduced as a
17 result of a population increase indicated by the 1980 federal
18 census.
19 (Source: P.A. 88-545; 89-585, eff. 1-1-97.)
20 (Ch. 34, rep. pars. 406a, 409.1, 409.1a, 409.2, 409.2a,
21 409.10, 409.10a and 409.10.1)
22 Section 145. Sections 25.05a, 25.05-2, 25.05-2a,
23 25.05-3, 25.05-3a, 25.05-10, 25.05-10a and 25.05-10.1 of "An
24 Act to revise the law in relation to counties", approved
25 March 31, 1874, as amended, are re-repealed.
26 Section 150. The Illinois Municipal Code is amended by
27 re-enacting Sections 8-11-1, 8-11-1.1, 8-11-1.2, 8-11-1.3,
28 8-11-1.4, 8-11-5, 8-11-6, 8-11-6a, 8-11-16, and 11-74.4-8a as
29 follows:
30 (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
31 Sec. 8-11-1. Home Rule Municipal Retailers' Occupation
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1 Tax Act. The corporate authorities of a home rule
2 municipality may impose a tax upon all persons engaged in the
3 business of selling tangible personal property, other than an
4 item of tangible personal property titled or registered with
5 an agency of this State's government, at retail in the
6 municipality on the gross receipts from these sales made in
7 the course of such business. If imposed, the tax shall only
8 be imposed in 1/4% increments. On and after September 1,
9 1991, this additional tax may not be imposed on the sales of
10 food for human consumption that is to be consumed off the
11 premises where it is sold (other than alcoholic beverages,
12 soft drinks and food that has been prepared for immediate
13 consumption) and prescription and nonprescription medicines,
14 drugs, medical appliances and insulin, urine testing
15 materials, syringes and needles used by diabetics. The tax
16 imposed by a home rule municipality under this Section and
17 all civil penalties that may be assessed as an incident of
18 the tax shall be collected and enforced by the State
19 Department of Revenue. The certificate of registration that
20 is issued by the Department to a retailer under the
21 Retailers' Occupation Tax Act shall permit the retailer to
22 engage in a business that is taxable under any ordinance or
23 resolution enacted pursuant to this Section without
24 registering separately with the Department under such
25 ordinance or resolution or under this Section. The
26 Department shall have full power to administer and enforce
27 this Section; to collect all taxes and penalties due
28 hereunder; to dispose of taxes and penalties so collected in
29 the manner hereinafter provided; and to determine all rights
30 to credit memoranda arising on account of the erroneous
31 payment of tax or penalty hereunder. In the administration
32 of, and compliance with, this Section the Department and
33 persons who are subject to this Section shall have the same
34 rights, remedies, privileges, immunities, powers and duties,
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1 and be subject to the same conditions, restrictions,
2 limitations, penalties and definitions of terms, and employ
3 the same modes of procedure, as are prescribed in Sections 1,
4 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in
5 respect to all provisions therein other than the State rate
6 of tax), 2c, 3 (except as to the disposition of taxes and
7 penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
8 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of
9 the Retailers' Occupation Tax Act and Section 3-7 of the
10 Uniform Penalty and Interest Act, as fully as if those
11 provisions were set forth herein.
12 No tax may be imposed by a home rule municipality under
13 this Section unless the municipality also imposes a tax at
14 the same rate under Section 8-11-5 of this Act.
15 Persons subject to any tax imposed under the authority
16 granted in this Section may reimburse themselves for their
17 seller's tax liability hereunder by separately stating that
18 tax as an additional charge, which charge may be stated in
19 combination, in a single amount, with State tax which sellers
20 are required to collect under the Use Tax Act, pursuant to
21 such bracket schedules as the Department may prescribe.
22 Whenever the Department determines that a refund should
23 be made under this Section to a claimant instead of issuing a
24 credit memorandum, the Department shall notify the State
25 Comptroller, who shall cause the order to be drawn for the
26 amount specified and to the person named in the notification
27 from the Department. The refund shall be paid by the State
28 Treasurer out of the home rule municipal retailers'
29 occupation tax fund.
30 The Department shall immediately pay over to the State
31 Treasurer, ex officio, as trustee, all taxes and penalties
32 collected hereunder. On or before the 25th day of each
33 calendar month, the Department shall prepare and certify to
34 the Comptroller the disbursement of stated sums of money to
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1 named municipalities, the municipalities to be those from
2 which retailers have paid taxes or penalties hereunder to the
3 Department during the second preceding calendar month. The
4 amount to be paid to each municipality shall be the amount
5 (not including credit memoranda) collected hereunder during
6 the second preceding calendar month by the Department plus an
7 amount the Department determines is necessary to offset any
8 amounts that were erroneously paid to a different taxing
9 body, and not including an amount equal to the amount of
10 refunds made during the second preceding calendar month by
11 the Department on behalf of such municipality, and not
12 including any amount that the Department determines is
13 necessary to offset any amounts that were payable to a
14 different taxing body but were erroneously paid to the
15 municipality. Within 10 days after receipt by the Comptroller
16 of the disbursement certification to the municipalities
17 provided for in this Section to be given to the Comptroller
18 by the Department, the Comptroller shall cause the orders to
19 be drawn for the respective amounts in accordance with the
20 directions contained in the certification.
21 In addition to the disbursement required by the preceding
22 paragraph and in order to mitigate delays caused by
23 distribution procedures, an allocation shall, if requested,
24 be made within 10 days after January 14, 1991, and in
25 November of 1991 and each year thereafter, to each
26 municipality that received more than $500,000 during the
27 preceding fiscal year, (July 1 through June 30) whether
28 collected by the municipality or disbursed by the Department
29 as required by this Section. Within 10 days after January 14,
30 1991, participating municipalities shall notify the
31 Department in writing of their intent to participate. In
32 addition, for the initial distribution, participating
33 municipalities shall certify to the Department the amounts
34 collected by the municipality for each month under its home
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1 rule occupation and service occupation tax during the period
2 July 1, 1989 through June 30, 1990. The allocation within 10
3 days after January 14, 1991, shall be in an amount equal to
4 the monthly average of these amounts, excluding the 2 months
5 of highest receipts. The monthly average for the period of
6 July 1, 1990 through June 30, 1991 will be determined as
7 follows: the amounts collected by the municipality under its
8 home rule occupation and service occupation tax during the
9 period of July 1, 1990 through September 30, 1990, plus
10 amounts collected by the Department and paid to such
11 municipality through June 30, 1991, excluding the 2 months of
12 highest receipts. The monthly average for each subsequent
13 period of July 1 through June 30 shall be an amount equal to
14 the monthly distribution made to each such municipality under
15 the preceding paragraph during this period, excluding the 2
16 months of highest receipts. The distribution made in
17 November 1991 and each year thereafter under this paragraph
18 and the preceding paragraph shall be reduced by the amount
19 allocated and disbursed under this paragraph in the preceding
20 period of July 1 through June 30. The Department shall
21 prepare and certify to the Comptroller for disbursement the
22 allocations made in accordance with this paragraph.
23 For the purpose of determining the local governmental
24 unit whose tax is applicable, a retail sale by a producer of
25 coal or other mineral mined in Illinois is a sale at retail
26 at the place where the coal or other mineral mined in
27 Illinois is extracted from the earth. This paragraph does
28 not apply to coal or other mineral when it is delivered or
29 shipped by the seller to the purchaser at a point outside
30 Illinois so that the sale is exempt under the United States
31 Constitution as a sale in interstate or foreign commerce.
32 Nothing in this Section shall be construed to authorize a
33 municipality to impose a tax upon the privilege of engaging
34 in any business which under the Constitution of the United
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1 States may not be made the subject of taxation by this State.
2 An ordinance or resolution imposing or discontinuing a
3 tax hereunder or effecting a change in the rate thereof shall
4 be adopted and a certified copy thereof filed with the
5 Department on or before the first day of June, whereupon the
6 Department shall proceed to administer and enforce this
7 Section as of the first day of September next following the
8 adoption and filing. Beginning January 1, 1992, an ordinance
9 or resolution imposing or discontinuing the tax hereunder or
10 effecting a change in the rate thereof shall be adopted and a
11 certified copy thereof filed with the Department on or before
12 the first day of July, whereupon the Department shall proceed
13 to administer and enforce this Section as of the first day of
14 October next following such adoption and filing. Beginning
15 January 1, 1993, an ordinance or resolution imposing or
16 discontinuing the tax hereunder or effecting a change in the
17 rate thereof shall be adopted and a certified copy thereof
18 filed with the Department on or before the first day of
19 October, whereupon the Department shall proceed to administer
20 and enforce this Section as of the first day of January next
21 following the adoption and filing. However, a municipality
22 located in a county with a population in excess of 3,000,000
23 that elected to become a home rule unit at the general
24 primary election in 1994 may adopt an ordinance or resolution
25 imposing the tax under this Section and file a certified copy
26 of the ordinance or resolution with the Department on or
27 before July 1, 1994. The Department shall then proceed to
28 administer and enforce this Section as of October 1, 1994.
29 Beginning April 1, 1998, an ordinance or resolution imposing
30 or discontinuing the tax hereunder or effecting a change in
31 the rate thereof shall either (i) be adopted and a certified
32 copy thereof filed with the Department on or before the first
33 day of April, whereupon the Department shall proceed to
34 administer and enforce this Section as of the first day of
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1 July next following the adoption and filing; or (ii) be
2 adopted and a certified copy thereof filed with the
3 Department on or before the first day of October, whereupon
4 the Department shall proceed to administer and enforce this
5 Section as of the first day of January next following the
6 adoption and filing.
7 When certifying the amount of a monthly disbursement to a
8 municipality under this Section, the Department shall
9 increase or decrease the amount by an amount necessary to
10 offset any misallocation of previous disbursements. The
11 offset amount shall be the amount erroneously disbursed
12 within the previous 6 months from the time a misallocation is
13 discovered.
14 Any unobligated balance remaining in the Municipal
15 Retailers' Occupation Tax Fund on December 31, 1989, which
16 fund was abolished by Public Act 85-1135, and all receipts of
17 municipal tax as a result of audits of liability periods
18 prior to January 1, 1990, shall be paid into the Local
19 Government Tax Fund for distribution as provided by this
20 Section prior to the enactment of Public Act 85-1135. All
21 receipts of municipal tax as a result of an assessment not
22 arising from an audit, for liability periods prior to January
23 1, 1990, shall be paid into the Local Government Tax Fund for
24 distribution before July 1, 1990, as provided by this Section
25 prior to the enactment of Public Act 85-1135; and on and
26 after July 1, 1990, all such receipts shall be distributed as
27 provided in Section 6z-18 of the State Finance Act.
28 As used in this Section, "municipal" and "municipality"
29 means a city, village or incorporated town, including an
30 incorporated town that has superseded a civil township.
31 This Section shall be known and may be cited as the Home
32 Rule Municipal Retailers' Occupation Tax Act.
33 (Source: P.A. 90-689, eff. 7-31-98.)
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1 (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
2 Sec. 8-11-1.1. (a) The corporate authorities of a
3 non-home rule municipality with a population greater than
4 130,000 but less than 2,000,000 may, upon approval of the
5 electors of the municipality pursuant to subsection (b) of
6 this Section, impose by ordinance or resolution the 1/2 of 1%
7 tax authorized in Sections 8-11-1.3, 8-11-1.4 and 8-11-1.5 of
8 this Act.
9 (b) The corporate authorities of the municipality may by
10 ordinance or resolution call for the submission to the
11 electors of the municipality the question of whether the
12 municipality shall impose such tax. Such question shall be
13 certified by the municipal clerk to the election authority in
14 accordance with Section 28-5 of the Election Code and shall
15 be in a form in accordance with Section 16-7 of the Election
16 Code.
17 If a majority of the electors in the municipality voting
18 upon the question vote in the affirmative, such tax shall be
19 imposed.
20 An ordinance or resolution imposing the 1/2 of 1% tax
21 hereunder or discontinuing the same shall be adopted and a
22 certified copy thereof, together with a certification that
23 the ordinance or resolution received referendum approval in
24 the case of the imposition of such tax, filed with the
25 Department of Revenue, on or before the first day of June,
26 whereupon the Department shall proceed to administer and
27 enforce the additional tax or to discontinue the tax, as the
28 case may be, as of the first day of September next following
29 such adoption and filing. Beginning January 1, 1992, an
30 ordinance or resolution imposing or discontinuing the tax
31 hereunder shall be adopted and a certified copy thereof filed
32 with the Department on or before the first day of July,
33 whereupon the Department shall proceed to administer and
34 enforce this Section as of the first day of October next
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1 following such adoption and filing. Beginning January 1,
2 1993, an ordinance or resolution imposing or discontinuing
3 the tax hereunder shall be adopted and a certified copy
4 thereof filed with the Department on or before the first day
5 of October, whereupon the Department shall proceed to
6 administer and enforce this Section as of the first day of
7 January next following such adoption and filing.
8 (Source: P.A. 86-928; 87-205.)
9 (65 ILCS 5/8-11-1.2) (from Ch. 24, par. 8-11-1.2)
10 Sec. 8-11-1.2. Definition. As used in Sections
11 8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act, "public
12 infrastructure" means municipal roads and streets, access
13 roads, bridges, and sidewalks; waste disposal systems; and
14 water and sewer line extensions, water distribution and
15 purification facilities, storm water drainage and retention
16 facilities, and sewage treatment facilities.
17 (Source: P.A. 86-928.)
18 (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
19 Sec. 8-11-1.3. The corporate authorities of a non-home
20 rule municipality with more than 130,000 but less than
21 2,000,000 inhabitants may impose a tax upon all persons
22 engaged in the business of selling tangible personal
23 property, other than on an item of tangible personal property
24 which is titled and registered by an agency of this State's
25 Government, at retail in the municipality at the rate of 1/2
26 of 1% for expenditure on public infrastructure as defined in
27 Section 8-11-1.2 if approved by referendum as provided in
28 Section 8-11-1.1, of the gross receipts from such sales made
29 in the course of such business. The tax imposed by a
30 municipality pursuant to this Section and all civil penalties
31 that may be assessed as an incident thereof shall be
32 collected and enforced by the State Department of Revenue.
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1 The certificate of registration which is issued by the
2 Department to a retailer under the Retailers' Occupation Tax
3 Act shall permit such retailer to engage in a business which
4 is taxable under any ordinance or resolution enacted pursuant
5 to this Section without registering separately with the
6 Department under such ordinance or resolution or under this
7 Section. The Department shall have full power to administer
8 and enforce this Section; to collect all taxes and penalties
9 due hereunder; to dispose of taxes and penalties so collected
10 in the manner hereinafter provided, and to determine all
11 rights to credit memoranda, arising on account of the
12 erroneous payment of tax or penalty hereunder. In the
13 administration of, and compliance with, this Section, the
14 Department and persons who are subject to this Section shall
15 have the same rights, remedies, privileges, immunities,
16 powers and duties, and be subject to the same conditions,
17 restrictions, limitations, penalties and definitions of
18 terms, and employ the same modes of procedure, as are
19 prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
20 through 2-65 (in respect to all provisions therein other than
21 the State rate of tax), 2c, 3 (except as to the disposition
22 of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e,
23 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
24 12 and 13 of the Retailers' Occupation Tax Act and Section
25 3-7 of the Uniform Penalty and Interest Act as fully as if
26 those provisions were set forth herein.
27 Persons subject to any tax imposed pursuant to the
28 authority granted in this Section may reimburse themselves
29 for their seller's tax liability hereunder by separately
30 stating such tax as an additional charge, which charge may be
31 stated in combination, in a single amount, with State tax
32 which sellers are required to collect under the Use Tax Act,
33 pursuant to such bracket schedules as the Department may
34 prescribe.
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1 Whenever the Department determines that a refund should
2 be made under this Section to a claimant instead of issuing a
3 credit memorandum, the Department shall notify the State
4 Comptroller, who shall cause the order to be drawn for the
5 amount specified, and to the person named, in such
6 notification from the Department. Such refund shall be paid
7 by the State Treasurer out of the non-home rule municipal
8 retailers' occupation tax fund.
9 The Department shall forthwith pay over to the State
10 Treasurer, ex officio, as trustee, all taxes and penalties
11 collected hereunder. On or before the 25th day of each
12 calendar month, the Department shall prepare and certify to
13 the Comptroller the disbursement of stated sums of money to
14 named municipalities, the municipalities to be those from
15 which retailers have paid taxes or penalties hereunder to the
16 Department during the second preceding calendar month. The
17 amount to be paid to each municipality shall be the amount
18 (not including credit memoranda) collected hereunder during
19 the second preceding calendar month by the Department plus an
20 amount the Department determines is necessary to offset any
21 amounts which were erroneously paid to a different taxing
22 body, and not including an amount equal to the amount of
23 refunds made during the second preceding calendar month by
24 the Department on behalf of such municipality, and not
25 including any amount which the Department determines is
26 necessary to offset any amounts which were payable to a
27 different taxing body but were erroneously paid to the
28 municipality. Within 10 days after receipt, by the
29 Comptroller, of the disbursement certification to the
30 municipalities, provided for in this Section to be given to
31 the Comptroller by the Department, the Comptroller shall
32 cause the orders to be drawn for the respective amounts in
33 accordance with the directions contained in such
34 certification.
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1 For the purpose of determining the local governmental
2 unit whose tax is applicable, a retail sale, by a producer of
3 coal or other mineral mined in Illinois, is a sale at retail
4 at the place where the coal or other mineral mined in
5 Illinois is extracted from the earth. This paragraph does
6 not apply to coal or other mineral when it is delivered or
7 shipped by the seller to the purchaser at a point outside
8 Illinois so that the sale is exempt under the Federal
9 Constitution as a sale in interstate or foreign commerce.
10 Nothing in this Section shall be construed to authorize a
11 municipality 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 When certifying the amount of a monthly disbursement to a
15 municipality under this Section, the Department shall
16 increase or decrease such amount by an amount necessary to
17 offset any misallocation of previous disbursements. The
18 offset amount shall be the amount erroneously disbursed
19 within the previous 6 months from the time a misallocation is
20 discovered.
21 As used in this Section, "municipal" and "municipality"
22 means a city, village or incorporated town, including an
23 incorporated town which has superseded a civil township.
24 This Section shall be known and may be cited as the
25 "Non-Home Rule Municipal Retailers' Occupation Tax Act".
26 (Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
27 (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
28 Sec. 8-11-1.4. The corporate authorities of a non-home
29 rule municipality with a population of more than 130,000 but
30 less than 2,000,000 may impose a tax upon all persons
31 engaged, in such municipality, in the business of making
32 sales of service at the rate of 1/2 of 1% for expenditure on
33 public infrastructure as defined in Section 8-11-1.2 if
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1 approved by referendum as provided in Section 8-11-1.1, of
2 the selling price of all tangible personal property
3 transferred by such servicemen either in the form of tangible
4 personal property or in the form of real estate as an
5 incident to a sale of service. 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 or under the Service Occupation Tax Act shall permit such
12 registrant to engage in a business which is taxable under any
13 ordinance or resolution enacted pursuant to this Section
14 without registering separately with the Department under such
15 ordinance or resolution or under this Section. The Department
16 shall have full power to administer and enforce this Section;
17 to collect all taxes and penalties due hereunder; to dispose
18 of taxes and penalties so collected in the manner hereinafter
19 provided, and to determine all rights to credit memoranda
20 arising on account of the erroneous payment of tax or penalty
21 hereunder. In the administration of, and compliance with,
22 this Section the Department and persons who are subject to
23 this Section shall have the same rights, remedies,
24 privileges, immunities, powers and duties, and be subject to
25 the same conditions, restrictions, limitations, penalties 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 taxing municipality), 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 taxing
33 municipality), 9 (except as to the disposition of taxes and
34 penalties collected, and except that the returned merchandise
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1 credit for this municipal tax may not be taken against any
2 State tax), 10, 11, 12 (except the reference therein to
3 Section 2b of the Retailers' Occupation Tax Act), 13 (except
4 that any reference to the State shall mean the taxing
5 municipality), the first paragraph of Section 15, 16, 17, 18,
6 19 and 20 of the Service Occupation Tax Act and Section 3-7
7 of the Uniform Penalty and Interest Act, as fully as if those
8 provisions were set forth herein.
9 Persons subject to any tax imposed pursuant to the
10 authority granted in this Section may reimburse themselves
11 for their serviceman's tax liability hereunder by separately
12 stating such tax as an additional charge, which charge may be
13 stated in combination, in a single amount, with State tax
14 which servicemen are authorized to collect under the Service
15 Use Tax Act, pursuant to such bracket schedules as the
16 Department may prescribe.
17 Whenever the Department determines that a refund should
18 be made under this Section to a claimant instead of issuing
19 credit memorandum, the Department shall notify the State
20 Comptroller, who shall cause the order to be drawn for the
21 amount specified, and to the person named, in such
22 notification from the Department. Such refund shall be paid
23 by the State Treasurer out of the municipal retailers'
24 occupation tax fund.
25 The Department shall forthwith pay over to the State
26 Treasurer, ex officio, as trustee, all taxes and penalties
27 collected hereunder. On or before the 25th day of each
28 calendar month, the Department shall prepare and certify to
29 the Comptroller the disbursement of stated sums of money to
30 named municipalities, the municipalities to be those from
31 which suppliers and servicemen have paid taxes or penalties
32 hereunder to the Department during the second preceding
33 calendar month. The amount to be paid to each municipality
34 shall be the amount (not including credit memoranda)
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1 collected hereunder during the second preceding calendar
2 month by the Department, and not including an amount equal to
3 the amount of refunds made during the second preceding
4 calendar month by the Department on behalf of such
5 municipality. Within 10 days after receipt, by the
6 Comptroller, of the disbursement certification to the
7 municipalities and the General Revenue Fund, provided for in
8 this Section to be given to the Comptroller by the
9 Department, the Comptroller shall cause the orders to be
10 drawn for the respective amounts in accordance with the
11 directions contained in such certification.
12 Nothing in this Section shall be construed to authorize a
13 municipality to impose a tax upon the privilege of engaging
14 in any business which under the constitution of the United
15 States may not be made the subject of taxation by this State.
16 As used in this Section, "municipal" or "municipality"
17 means or refers to a city, village or incorporated town,
18 including an incorporated town which has superseded a civil
19 township.
20 This Section shall be known and may be cited as the
21 "Non-Home Rule Municipal Service Occupation Tax Act".
22 (Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
23 (65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
24 Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
25 Act. The corporate authorities of a home rule municipality
26 may impose a tax upon all persons engaged, in such
27 municipality, in the business of making sales of service at
28 the same rate of tax imposed pursuant to Section 8-11-1, of
29 the selling price of all tangible personal property
30 transferred by such servicemen either in the form of tangible
31 personal property or in the form of real estate as an
32 incident to a sale of service. If imposed, such tax shall
33 only be imposed in 1/4% increments. On and after September 1,
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1 1991, this additional tax may not be imposed on the sales of
2 food for human consumption which is to be consumed off the
3 premises where it is sold (other than alcoholic beverages,
4 soft drinks and food which 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 pursuant to this Section
9 and all civil penalties that may be assessed as an incident
10 thereof shall be collected and enforced by the State
11 Department of Revenue. The certificate of registration which
12 is issued by the Department to a retailer under the
13 Retailers' Occupation Tax Act or under the Service Occupation
14 Tax Act shall permit such registrant to engage in a business
15 which is taxable under any ordinance or resolution enacted
16 pursuant to this Section without registering separately with
17 the Department under such ordinance or resolution or under
18 this Section. The Department shall have full power to
19 administer and enforce this Section; to collect all taxes and
20 penalties due hereunder; to dispose of taxes and penalties so
21 collected in the manner hereinafter provided, and to
22 determine all rights to credit memoranda arising on account
23 of the erroneous payment of tax or penalty hereunder. In the
24 administration of, and compliance with, this Section the
25 Department and persons who are subject to this Section shall
26 have the same rights, remedies, privileges, immunities,
27 powers and duties, and be subject to the same conditions,
28 restrictions, limitations, penalties and definitions of
29 terms, and employ the same modes of procedure, as are
30 prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
31 respect to all provisions therein other than the State rate
32 of tax), 4 (except that the reference to the State shall be
33 to the taxing municipality), 5, 7, 8 (except that the
34 jurisdiction to which the tax shall be a debt to the extent
SB144 Engrossed -189- LRB9101598PTpk
1 indicated in that Section 8 shall be the taxing
2 municipality), 9 (except as to the disposition of taxes and
3 penalties collected, and except that the returned merchandise
4 credit for this municipal tax may not be taken against any
5 State tax), 10, 11, 12 (except the reference therein to
6 Section 2b of the Retailers' Occupation Tax Act), 13 (except
7 that any reference to the State shall mean the taxing
8 municipality), the first paragraph of Section 15, 16, 17
9 (except that credit memoranda issued hereunder may not be
10 used to discharge any State tax liability), 18, 19 and 20 of
11 the Service Occupation Tax Act and Section 3-7 of the Uniform
12 Penalty and Interest Act, as fully as if those provisions
13 were set forth herein.
14 No tax may be imposed by a home rule municipality
15 pursuant to this Section unless such municipality also
16 imposes a tax at the same rate pursuant to Section 8-11-1 of
17 this Act.
18 Persons subject to any tax imposed pursuant to the
19 authority granted in this Section may reimburse themselves
20 for their serviceman's tax liability hereunder by separately
21 stating such tax as an additional charge, which charge may be
22 stated in combination, in a single amount, with State tax
23 which servicemen are authorized to collect under the Service
24 Use Tax Act, pursuant to such bracket schedules as the
25 Department may prescribe.
26 Whenever the Department determines that a refund should
27 be made under this Section to a claimant instead of issuing
28 credit memorandum, the Department shall notify the State
29 Comptroller, who shall cause the order to be drawn for the
30 amount specified, and to the person named, in such
31 notification from the Department. Such refund shall be paid
32 by the State Treasurer out of the home rule municipal
33 retailers' occupation tax fund.
34 The Department shall forthwith pay over to the State
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1 Treasurer, ex-officio, as trustee, all taxes and penalties
2 collected hereunder. On or before the 25th day of each
3 calendar month, the Department shall prepare and certify to
4 the Comptroller the disbursement of stated sums of money to
5 named municipalities, the municipalities to be those from
6 which suppliers and servicemen have paid taxes or penalties
7 hereunder to the Department during the second preceding
8 calendar month. The amount to be paid to each municipality
9 shall be the amount (not including credit memoranda)
10 collected hereunder during the second preceding calendar
11 month by the Department, and not including an amount equal to
12 the amount of refunds made during the second preceding
13 calendar month by the Department on behalf of such
14 municipality. Within 10 days after receipt, by the
15 Comptroller, of the disbursement certification to the
16 municipalities, provided for in this Section to be given to
17 the Comptroller by the Department, the Comptroller shall
18 cause the orders to be drawn for the respective amounts in
19 accordance with the directions contained in such
20 certification.
21 In addition to the disbursement required by the preceding
22 paragraph and in order to mitigate delays caused by
23 distribution procedures, an allocation shall, if requested,
24 be made within 10 days after January 14, 1991, and in
25 November of 1991 and each year thereafter, to each
26 municipality that received more than $500,000 during the
27 preceding fiscal year, (July 1 through June 30) whether
28 collected by the municipality or disbursed by the Department
29 as required by this Section. Within 10 days after January 14,
30 1991, participating municipalities shall notify the
31 Department in writing of their intent to participate. In
32 addition, for the initial distribution, participating
33 municipalities shall certify to the Department the amounts
34 collected by the municipality for each month under its home
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1 rule occupation and service occupation tax during the period
2 July 1, 1989 through June 30, 1990. The allocation within 10
3 days after January 14, 1991, shall be in an amount equal to
4 the monthly average of these amounts, excluding the 2 months
5 of highest receipts. Monthly average for the period of July
6 1, 1990 through June 30, 1991 will be determined as follows:
7 the amounts collected by the municipality under its home rule
8 occupation and service occupation tax during the period of
9 July 1, 1990 through September 30, 1990, plus amounts
10 collected by the Department and paid to such municipality
11 through June 30, 1991, excluding the 2 months of highest
12 receipts. The monthly average for each subsequent period of
13 July 1 through June 30 shall be an amount equal to the
14 monthly distribution made to each such municipality under the
15 preceding paragraph during this period, excluding the 2
16 months of highest receipts. The distribution made in
17 November 1991 and each year thereafter under this paragraph
18 and the preceding paragraph shall be reduced by the amount
19 allocated and disbursed under this paragraph in the preceding
20 period of July 1 through June 30. The Department shall
21 prepare and certify to the Comptroller for disbursement the
22 allocations made in accordance with this paragraph.
23 Nothing in this Section shall be construed to authorize a
24 municipality to impose a tax upon the privilege of engaging
25 in any business which under the constitution of the United
26 States may not be made the subject of taxation by this State.
27 An ordinance or resolution imposing or discontinuing a
28 tax hereunder or effecting a change in the rate thereof shall
29 be adopted and a certified copy thereof filed with the
30 Department on or before the first day of June, whereupon the
31 Department shall proceed to administer and enforce this
32 Section as of the first day of September next following such
33 adoption and filing. Beginning January 1, 1992, an ordinance
34 or resolution imposing or discontinuing the tax hereunder or
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1 effecting a change in the rate thereof shall be adopted and a
2 certified copy thereof filed with the Department on or before
3 the first day of July, whereupon the Department shall proceed
4 to administer and enforce this Section as of the first day of
5 October next following such adoption and filing. Beginning
6 January 1, 1993, an ordinance or resolution imposing or
7 discontinuing the tax hereunder or effecting a change in the
8 rate thereof shall be adopted and a certified copy thereof
9 filed with the Department on or before the first day of
10 October, whereupon the Department shall proceed to administer
11 and enforce this Section as of the first day of January next
12 following such adoption and filing. However, a municipality
13 located in a county with a population in excess of 3,000,000
14 that elected to become a home rule unit at the general
15 primary election in 1994 may adopt an ordinance or resolution
16 imposing the tax under this Section and file a certified copy
17 of the ordinance or resolution with the Department on or
18 before July 1, 1994. The Department shall then proceed to
19 administer and enforce this Section as of October 1, 1994.
20 Beginning April 1, 1998, an ordinance or resolution imposing
21 or discontinuing the tax hereunder or effecting a change in
22 the rate thereof shall either (i) be adopted and a certified
23 copy thereof filed with the Department on or before the first
24 day of April, whereupon the Department shall proceed to
25 administer and enforce this Section as of the first day of
26 July next following the adoption and filing; or (ii) be
27 adopted and a certified copy thereof filed with the
28 Department on or before the first day of October, whereupon
29 the Department shall proceed to administer and enforce this
30 Section as of the first day of January next following the
31 adoption and filing.
32 Any unobligated balance remaining in the Municipal
33 Retailers' Occupation Tax Fund on December 31, 1989, which
34 fund was abolished by Public Act 85-1135, and all receipts of
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1 municipal tax as a result of audits of liability periods
2 prior to January 1, 1990, shall be paid into the Local
3 Government Tax Fund, for distribution as provided by this
4 Section prior to the enactment of Public Act 85-1135. All
5 receipts of municipal tax as a result of an assessment not
6 arising from an audit, for liability periods prior to January
7 1, 1990, shall be paid into the Local Government Tax Fund for
8 distribution before July 1, 1990, as provided by this Section
9 prior to the enactment of Public Act 85-1135, and on and
10 after July 1, 1990, all such receipts shall be distributed as
11 provided in Section 6z-18 of the State Finance Act.
12 As used in this Section, "municipal" and "municipality"
13 means a city, village or incorporated town, including an
14 incorporated town which has superseded a civil township.
15 This Section shall be known and may be cited as the Home
16 Rule Municipal Service Occupation Tax Act.
17 (Source: P.A. 90-689, eff. 7-31-98.)
18 (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
19 Sec. 8-11-6. Home Rule Municipal Use Tax Act.
20 (a) The corporate authorities of a home rule
21 municipality may impose a tax upon the privilege of using, in
22 such municipality, any item of tangible personal property
23 which is purchased at retail from a retailer, and which is
24 titled or registered at a location within the corporate
25 limits of such home rule municipality with an agency of this
26 State's government, at a rate which is an increment of 1/4%
27 and based on the selling price of such tangible personal
28 property, as "selling price" is defined in the Use Tax Act.
29 In home rule municipalities with less than 2,000,000
30 inhabitants, the tax shall be collected by the municipality
31 imposing the tax from persons whose Illinois address for
32 titling or registration purposes is given as being in such
33 municipality.
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1 (b) In home rule municipalities with 2,000,000 or more
2 inhabitants, the corporate authorities of the municipality
3 may additionally impose a tax beginning July 1, 1991 upon the
4 privilege of using in the municipality, any item of tangible
5 personal property, other than tangible personal property
6 titled or registered with an agency of the State's
7 government, that is purchased at retail from a retailer
8 located outside the corporate limits of the municipality, at
9 a rate that is an increment of 1/4% not to exceed 1% and
10 based on the selling price of the tangible personal property,
11 as "selling price" is defined in the Use Tax Act. Such tax
12 shall be collected from the purchaser by the municipality
13 imposing such tax.
14 To prevent multiple home rule taxation, the use in a home
15 rule municipality of tangible personal property that is
16 acquired outside the municipality and caused to be brought
17 into the municipality by a person who has already paid a home
18 rule municipal tax in another municipality in respect to the
19 sale, purchase, or use of that property, shall be exempt to
20 the extent of the amount of the tax properly due and paid in
21 the other home rule municipality.
22 (c) If a municipality having 2,000,000 or more
23 inhabitants imposes the tax authorized by subsection (a),
24 then the tax shall be collected by the Illinois Department of
25 Revenue when the property is purchased at retail from a
26 retailer in the county in which the home rule municipality
27 imposing the tax is located, and in all contiguous counties.
28 The tax shall be remitted to the State, or an exemption
29 determination must be obtained from the Department before the
30 title or certificate of registration for the property may be
31 issued. The tax or proof of exemption may be transmitted to
32 the Department by way of the State agency with which, or
33 State officer with whom, the tangible personal property must
34 be titled or registered if the Department and that agency or
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1 State officer determine that this procedure will expedite the
2 processing of applications for title or registration.
3 The Department shall have full power to administer and
4 enforce this Section to collect all taxes, penalties and
5 interest due hereunder, to dispose of taxes, penalties and
6 interest so collected in the manner hereinafter provided, and
7 determine all rights to credit memoranda or refunds arising
8 on account of the erroneous payment of tax, penalty or
9 interest hereunder. In the administration of and compliance
10 with this Section the Department and persons who are subject
11 to this Section shall have the same rights, remedies,
12 privileges, immunities, powers and duties, and be subject to
13 the same conditions, restrictions, limitations, penalties and
14 definitions of terms, and employ the same modes of procedure
15 as are prescribed in Sections 2 (except the definition of
16 "retailer maintaining a place of business in this State"), 3
17 (except provisions pertaining to the State rate of tax, and
18 except provisions concerning collection or refunding of the
19 tax by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22
20 of the Use Tax Act, which are not inconsistent with this
21 Section, as fully as if provisions contained in those
22 Sections of the Use Tax Act were set forth herein.
23 Whenever the Department determines that a refund shall be
24 made under this Section to a claimant instead of issuing a
25 credit memorandum, the Department shall notify the State
26 Comptroller, who shall cause the order to be drawn for the
27 amount specified, and to the person named, in such
28 notification from the Department. Such refund shall be paid
29 by the State Treasurer out of the home rule municipal
30 retailers' occupation tax fund.
31 The Department shall forthwith pay over to the State
32 Treasurer, ex officio, as trustee, all taxes, penalties and
33 interest collected hereunder. On or before the 25th day of
34 each calendar month, the Department shall prepare and certify
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1 to the State Comptroller the disbursement of stated sums of
2 money to named municipalities, the municipality in each
3 instance to be that municipality from which the Department
4 during the second preceding calendar month, collected
5 municipal use tax from any person whose Illinois address for
6 titling or registration purposes is given as being in such
7 municipality. The amount to be paid to each municipality
8 shall be the amount (not including credit memoranda)
9 collected hereunder during the second preceding calendar
10 month by the Department, and not including an amount equal to
11 the amount of refunds made during the second preceding
12 calendar month by the Department on behalf of such
13 municipality, less the amount expended during the second
14 preceding month by the Department to be paid from the
15 appropriation to the Department from the Home Rule Municipal
16 Retailers' Occupation Tax Trust Fund. The appropriation to
17 cover the costs incurred by the Department in administering
18 and enforcing this Section shall not exceed 2% of the amount
19 estimated to be deposited into the Home Rule Municipal
20 Retailers' Occupation Tax Trust Fund during the fiscal year
21 for which the appropriation is made. Within 10 days after
22 receipt by the State Comptroller of the disbursement
23 certification to the municipalities provided for in this
24 Section to be given to the State Comptroller by the
25 Department, the State Comptroller shall cause the orders to
26 be drawn for the respective amounts in accordance with the
27 directions contained in that certification.
28 Any ordinance imposing or discontinuing any tax to be
29 collected and enforced by the Department under this Section
30 shall be adopted and a certified copy thereof filed with the
31 Department on or before October 1, whereupon the Department
32 of Revenue shall proceed to administer and enforce this
33 Section on behalf of the municipalities as of January 1 next
34 following such adoption and filing. Beginning April 1, 1998,
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1 any ordinance imposing or discontinuing any tax to be
2 collected and enforced by the Department under this Section
3 shall either (i) be adopted and a certified copy thereof
4 filed with the Department on or before April 1, whereupon the
5 Department of Revenue shall proceed to administer and enforce
6 this Section on behalf of the municipalities as of July 1
7 next following the adoption and filing; or (ii) be adopted
8 and a certified copy thereof filed with the Department on or
9 before October 1, whereupon the Department of Revenue shall
10 proceed to administer and enforce this Section on behalf of
11 the municipalities as of January 1 next following the
12 adoption and filing.
13 Nothing in this subsection (c) shall prevent a home rule
14 municipality from collecting the tax pursuant to subsection
15 (a) in any situation where such tax is not collected by the
16 Department of Revenue under this subsection (c).
17 (d) Any unobligated balance remaining in the Municipal
18 Retailers' Occupation Tax Fund on December 31, 1989, which
19 fund was abolished by Public Act 85-1135, and all receipts of
20 municipal tax as a result of audits of liability periods
21 prior to January 1, 1990, shall be paid into the Local
22 Government Tax Fund, for distribution as provided by this
23 Section prior to the enactment of Public Act 85-1135. All
24 receipts of municipal tax as a result of an assessment not
25 arising from an audit, for liability periods prior to January
26 1, 1990, shall be paid into the Local Government Tax Fund for
27 distribution before July 1, 1990, as provided by this Section
28 prior to the enactment of Public Act 85-1135, and on and
29 after July 1, 1990, all such receipts shall be distributed as
30 provided in Section 6z-18 of the State Finance Act.
31 (e) As used in this Section, "Municipal" and
32 "Municipality" means a city, village or incorporated town,
33 including an incorporated town which has superseded a civil
34 township.
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1 (f) This Section shall be known and may be cited as the
2 Home Rule Municipal Use Tax Act.
3 (Source: P.A. 90-562, eff. 12-16-97; 90-689, eff. 7-31-98.)
4 (65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a)
5 Sec. 8-11-6a. Home rule municipalities; preemption of
6 certain taxes. Except as provided in Sections 8-11-1,
7 8-11-5, 8-11-6, and 8-11-6b on and after September 1, 1990,
8 no home rule municipality has the authority to impose,
9 pursuant to its home rule authority, a retailer's occupation
10 tax, service occupation tax, use tax, sales tax or other tax
11 on the use, sale or purchase of tangible personal property
12 based on the gross receipts from such sales or the selling or
13 purchase price of said tangible personal property.
14 Notwithstanding the foregoing, this Section does not preempt
15 any home rule imposed tax such as the following: (1) a tax on
16 alcoholic beverages, whether based on gross receipts, volume
17 sold or any other measurement; (2) a tax based on the number
18 of units of cigarettes or tobacco products (provided,
19 however, that a home rule municipality that has not imposed a
20 tax based on the number of units of cigarettes or tobacco
21 products before July 1, 1993, shall not impose such a tax
22 after that date); (3) a tax, however measured, based on the
23 use of a hotel or motel room or similar facility; (4) a tax,
24 however measured, on the sale or transfer of real property;
25 (5) a tax, however measured, on lease receipts; (6) a tax on
26 food prepared for immediate consumption and on alcoholic
27 beverages sold by a business which provides for on premise
28 consumption of said food or alcoholic beverages; or (7) other
29 taxes not based on the selling or purchase price or gross
30 receipts from the use, sale or purchase of tangible personal
31 property. This Section is not intended to affect any
32 existing tax on food and beverages prepared for immediate
33 consumption on the premises where the sale occurs, or any
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1 existing tax on alcoholic beverages, or any existing tax
2 imposed on the charge for renting a hotel or motel room,
3 which was in effect January 15, 1988, or any extension of the
4 effective date of such an existing tax by ordinance of the
5 municipality imposing the tax, which extension is hereby
6 authorized, in any non-home rule municipality in which the
7 imposition of such a tax has been upheld by judicial
8 determination, nor is this Section intended to preempt the
9 authority granted by Public Act 85-1006. This Section is a
10 limitation, pursuant to subsection (g) of Section 6 of
11 Article VII of the Illinois Constitution, on the power of
12 home rule units to tax.
13 (Source: P.A. 88-507; 88-527; 88-670, eff. 12-2-94.)
14 (65 ILCS 5/8-11-16) (from Ch. 24, par. 8-11-16)
15 Sec. 8-11-16. The Department of Revenue shall submit to
16 each municipality each year a list of those persons within
17 that municipality who are registered with the Department
18 under the Retailers' Occupation Tax Act.
19 The list shall indicate the street address of each retail
20 outlet operated in the municipality by the persons so
21 registered and the name under which the retailer conducts
22 business, if different from the corporate name. The
23 municipal clerk shall forward any changes or corrections to
24 the list to the Department within 6 months. The Department
25 shall update and correct its records to reflect such changes,
26 or notify the municipality in writing that the suggested
27 changes are erroneous, within 90 days. The Department shall
28 also provide monthly updates to each municipality showing
29 additions or deletions to the list of retail outlets within
30 the municipality. The Department shall provide a copy of the
31 annual listing herein provided for contiguous jurisdictions
32 when a municipality so requests. The list required by this
33 Section shall contain only the names and street addresses of
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1 persons who are registered with the Department and shall not
2 include the amount of tax paid by such persons. The list
3 required by this Section shall be provided to each
4 municipality no later than September 1 annually.
5 When certifying the amount of a monthly disbursement to a
6 municipality under Section 8-11-1, 8-11-5, 8-11-6 of this Act
7 or Section 6z-18 of "An Act in relation to State finance",
8 the Department shall increase or decrease such amount by an
9 amount necessary to offset any misallocation of previous
10 disbursements. The offset amount shall be the amount
11 erroneously disbursed within the previous 6 months from the
12 time a misallocation is discovered.
13 The Department of Revenue must upon the request of any
14 municipality received pursuant to the provisions of this
15 paragraph furnish to such municipality data setting forth the
16 aggregate amount of retailers' occupation tax collected on
17 behalf of such municipality from any shopping center
18 identified in such request and located within such
19 municipality for each month beginning with the first month
20 following the month within which such a request is received
21 by the Department, provided that such data may be provided
22 only with respect to shopping centers (1) which consist of 50
23 or more persons registered with the Department to pay
24 Retailers' Occupation Tax, and (2) where the developers or
25 owners thereof or their predecessors in interest have entered
26 into written agreements with the municipality to transfer
27 property to or perform services for or on behalf of such
28 municipality in exchange for payments based solely or in part
29 on the amount of retailers' occupation tax collected on
30 behalf of the municipality from persons within such shopping
31 centers. Data given pursuant to this paragraph shall not
32 identify by amounts the individual sources of such taxes. A
33 request for data pursuant to this paragraph shall first be
34 submitted to the Department of Revenue by the Municipal
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1 Clerk, City Council or Village Board of Trustees. The
2 Department of Revenue shall review each such request to
3 determine whether the requirements of item (2) of the first
4 sentence of this paragraph have been met and, within 30 days
5 following its receipt of such a request, shall either certify
6 that the request meets such requirements, or notify the
7 person submitting the request that the request does not meet
8 such requirements.
9 As used in this Section, "Municipal" or "Municipality"
10 means or refers to a city, village or incorporated town,
11 including an incorporated town which has superseded a civil
12 township, and "shopping center" means a group of retail
13 stores and other business and service establishments in an
14 integrated building arrangement operated under common
15 ownership or diverse ownership under unified control
16 involving common parking areas and mutual easements.
17 (Source: P.A. 86-928.)
18 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
19 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
20 which has adopted tax increment allocation financing prior to
21 January 1, 1987, may by ordinance (1) authorize the
22 Department of Revenue, subject to appropriation, to annually
23 certify and cause to be paid from the Illinois Tax Increment
24 Fund to such municipality for deposit in the municipality's
25 special tax allocation fund an amount equal to the Net State
26 Sales Tax Increment and (2) authorize the Department of
27 Revenue to annually notify the municipality of the amount of
28 the Municipal Sales Tax Increment which shall be deposited by
29 the municipality in the municipality's special tax allocation
30 fund. Provided that for purposes of this Section no
31 amendments adding additional area to the redevelopment
32 project area which has been certified as the State Sales Tax
33 Boundary shall be taken into account if such amendments are
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1 adopted by the municipality after January 1, 1987. If an
2 amendment is adopted which decreases the area of a State
3 Sales Tax Boundary, the municipality shall update the list
4 required by subsection (3)(a) of this Section. The Retailers'
5 Occupation Tax liability, Use Tax liability, Service
6 Occupation Tax liability and Service Use Tax liability for
7 retailers and servicemen located within the disconnected area
8 shall be excluded from the base from which tax increments are
9 calculated and the revenue from any such retailer or
10 serviceman shall not be included in calculating incremental
11 revenue payable to the municipality. A municipality adopting
12 an ordinance under this subsection (1) of this Section for a
13 redevelopment project area which is certified as a State
14 Sales Tax Boundary shall not be entitled to payments of State
15 taxes authorized under subsection (2) of this Section for the
16 same redevelopment project area. Nothing herein shall be
17 construed to prevent a municipality from receiving payment of
18 State taxes authorized under subsection (2) of this Section
19 for a separate redevelopment project area that does not
20 overlap in any way with the State Sales Tax Boundary
21 receiving payments of State taxes pursuant to subsection (1)
22 of this Section.
23 A certified copy of such ordinance shall be submitted by
24 the municipality to the Department of Commerce and Community
25 Affairs and the Department of Revenue not later than 30 days
26 after the effective date of the ordinance. Upon submission
27 of the ordinances, and the information required pursuant to
28 subsection 3 of this Section, the Department of Revenue shall
29 promptly determine the amount of such taxes paid under the
30 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
31 Act, the Service Occupation Tax Act, the Municipal Retailers'
32 Occupation Tax Act and the Municipal Service Occupation Tax
33 Act by retailers and servicemen on transactions at places
34 located in the redevelopment project area during the base
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1 year, and shall certify all the foregoing "initial sales tax
2 amounts" to the municipality within 60 days of submission of
3 the list required of subsection (3)(a) of this Section.
4 If a retailer or serviceman with a place of business
5 located within a redevelopment project area also has one or
6 more other places of business within the municipality but
7 outside the redevelopment project area, the retailer or
8 serviceman shall, upon request of the Department of Revenue,
9 certify to the Department of Revenue the amount of taxes paid
10 pursuant to the Retailers' Occupation Tax Act, the Municipal
11 Retailers' Occupation Tax Act, the Service Occupation Tax Act
12 and the Municipal Service Occupation Tax Act at each place of
13 business which is located within the redevelopment project
14 area in the manner and for the periods of time requested by
15 the Department of Revenue.
16 When the municipality determines that a portion of an
17 increase in the aggregate amount of taxes paid by retailers
18 and servicemen under the Retailers' Occupation Tax Act, Use
19 Tax Act, Service Use Tax Act, or the Service Occupation Tax
20 Act is the result of a retailer or serviceman initiating
21 retail or service operations in the redevelopment project
22 area by such retailer or serviceman with a resulting
23 termination of retail or service operations by such retailer
24 or serviceman at another location in Illinois in the standard
25 metropolitan statistical area of such municipality, the
26 Department of Revenue shall be notified that the retailers
27 occupation tax liability, use tax liability, service
28 occupation tax liability, or service use tax liability from
29 such retailer's or serviceman's terminated operation shall be
30 included in the base Initial Sales Tax Amounts from which the
31 State Sales Tax Increment is calculated for purposes of State
32 payments to the affected municipality; provided, however, for
33 purposes of this paragraph "termination" shall mean a closing
34 of a retail or service operation which is directly related to
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1 the opening of the same retail or service operation in a
2 redevelopment project area which is included within a State
3 Sales Tax Boundary, but it shall not include retail or
4 service operations closed for reasons beyond the control of
5 the retailer or serviceman, as determined by the Department.
6 If the municipality makes the determination referred to in
7 the prior paragraph and notifies the Department and if the
8 relocation is from a location within the municipality, the
9 Department, at the request of the municipality, shall adjust
10 the certified aggregate amount of taxes that constitute the
11 Municipal Sales Tax Increment paid by retailers and
12 servicemen on transactions at places of business located
13 within the State Sales Tax Boundary during the base year
14 using the same procedures as are employed to make the
15 adjustment referred to in the prior paragraph. The adjusted
16 Municipal Sales Tax Increment calculated by the Department
17 shall be sufficient to satisfy the requirements of subsection
18 (1) of this Section.
19 When a municipality which has adopted tax increment
20 allocation financing in 1986 determines that a portion of the
21 aggregate amount of taxes paid by retailers and servicemen
22 under the Retailers Occupation Tax Act, Use Tax Act, Service
23 Use Tax Act, or Service Occupation Tax Act, the Municipal
24 Retailers' Occupation Tax Act and the Municipal Service
25 Occupation Tax Act, includes revenue of a retailer or
26 serviceman which terminated retailer or service operations in
27 1986, prior to the adoption of tax increment allocation
28 financing, the Department of Revenue shall be notified by
29 such municipality that the retailers' occupation tax
30 liability, use tax liability, service occupation tax
31 liability or service use tax liability, from such retailer's
32 or serviceman's terminated operations shall be excluded from
33 the Initial Sales Tax Amounts for such taxes. The revenue
34 from any such retailer or serviceman which is excluded from
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1 the base year under this paragraph, shall not be included in
2 calculating incremental revenues if such retailer or
3 serviceman reestablishes such business in the redevelopment
4 project area.
5 For State fiscal year 1992, the Department of Revenue
6 shall budget, and the Illinois General Assembly shall
7 appropriate from the Illinois Tax Increment Fund in the State
8 treasury, an amount not to exceed $18,000,000 to pay to each
9 eligible municipality the Net State Sales Tax Increment to
10 which such municipality is entitled.
11 Beginning on January 1, 1993, each municipality's
12 proportional share of the Illinois Tax Increment Fund shall
13 be determined by adding the annual Net State Sales Tax
14 Increment and the annual Net Utility Tax Increment to
15 determine the Annual Total Increment. The ratio of the Annual
16 Total Increment of each municipality to the Annual Total
17 Increment for all municipalities, as most recently calculated
18 by the Department, shall determine the proportional shares of
19 the Illinois Tax Increment Fund to be distributed to each
20 municipality.
21 Beginning in October, 1993, and each January, April, July
22 and October thereafter, the Department of Revenue shall
23 certify to the Treasurer and the Comptroller the amounts
24 payable quarter annually during the fiscal year to each
25 municipality under this Section. The Comptroller shall
26 promptly then draw warrants, ordering the State Treasurer to
27 pay such amounts from the Illinois Tax Increment Fund in the
28 State treasury.
29 The Department of Revenue shall utilize the same periods
30 established for determining State Sales Tax Increment to
31 determine the Municipal Sales Tax Increment for the area
32 within a State Sales Tax Boundary and certify such amounts to
33 such municipal treasurer who shall transfer such amounts to
34 the special tax allocation fund.
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1 The provisions of this subsection (1) do not apply to
2 additional municipal retailers' occupation or service
3 occupation taxes imposed by municipalities using their home
4 rule powers or imposed pursuant to Sections 8-11-1.3,
5 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
6 receive from the State any share of the Illinois Tax
7 Increment Fund unless such municipality deposits all its
8 Municipal Sales Tax Increment and the local incremental real
9 property tax revenues, as provided herein, into the
10 appropriate special tax allocation fund. A municipality
11 located within an economic development project area created
12 under the County Economic Development Project Area Property
13 Tax Allocation Act which has abated any portion of its
14 property taxes which otherwise would have been deposited in
15 its special tax allocation fund shall not receive from the
16 State the Net Sales Tax Increment.
17 (2) A municipality which has adopted tax increment
18 allocation financing with regard to an industrial park or
19 industrial park conservation area, prior to January 1, 1988,
20 may by ordinance authorize the Department of Revenue to
21 annually certify and pay from the Illinois Tax Increment Fund
22 to such municipality for deposit in the municipality's
23 special tax allocation fund an amount equal to the Net State
24 Utility Tax Increment. Provided that for purposes of this
25 Section no amendments adding additional area to the
26 redevelopment project area shall be taken into account if
27 such amendments are adopted by the municipality after January
28 1, 1988. Municipalities adopting an ordinance under this
29 subsection (2) of this Section for a redevelopment project
30 area shall not be entitled to payment of State taxes
31 authorized under subsection (1) of this Section for the same
32 redevelopment project area which is within a State Sales Tax
33 Boundary. Nothing herein shall be construed to prevent a
34 municipality from receiving payment of State taxes authorized
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1 under subsection (1) of this Section for a separate
2 redevelopment project area within a State Sales Tax Boundary
3 that does not overlap in any way with the redevelopment
4 project area receiving payments of State taxes pursuant to
5 subsection (2) of this Section.
6 A certified copy of such ordinance shall be submitted to
7 the Department of Commerce and Community Affairs and the
8 Department of Revenue not later than 30 days after the
9 effective date of the ordinance.
10 When a municipality determines that a portion of an
11 increase in the aggregate amount of taxes paid by industrial
12 or commercial facilities under the Public Utilities Act, is
13 the result of an industrial or commercial facility initiating
14 operations in the redevelopment project area with a resulting
15 termination of such operations by such industrial or
16 commercial facility at another location in Illinois, the
17 Department of Revenue shall be notified by such municipality
18 that such industrial or commercial facility's liability under
19 the Public Utility Tax Act shall be included in the base from
20 which tax increments are calculated for purposes of State
21 payments to the affected municipality.
22 After receipt of the calculations by the public utility
23 as required by subsection (4) of this Section, the Department
24 of Revenue shall annually budget and the Illinois General
25 Assembly shall annually appropriate from the General Revenue
26 Fund through State Fiscal Year 1989, and thereafter from the
27 Illinois Tax Increment Fund, an amount sufficient to pay to
28 each eligible municipality the amount of incremental revenue
29 attributable to State electric and gas taxes as reflected by
30 the charges imposed on persons in the project area to which
31 such municipality is entitled by comparing the preceding
32 calendar year with the base year as determined by this
33 Section. Beginning on January 1, 1993, each municipality's
34 proportional share of the Illinois Tax Increment Fund shall
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1 be determined by adding the annual Net State Utility Tax
2 Increment and the annual Net Utility Tax Increment to
3 determine the Annual Total Increment. The ratio of the Annual
4 Total Increment of each municipality to the Annual Total
5 Increment for all municipalities, as most recently calculated
6 by the Department, shall determine the proportional shares of
7 the Illinois Tax Increment Fund to be distributed to each
8 municipality.
9 A municipality shall not receive any share of the
10 Illinois Tax Increment Fund from the State unless such
11 municipality imposes the maximum municipal charges authorized
12 pursuant to Section 9-221 of the Public Utilities Act and
13 deposits all municipal utility tax incremental revenues as
14 certified by the public utilities, and all local real estate
15 tax increments into such municipality's special tax
16 allocation fund.
17 (3) Within 30 days after the adoption of the ordinance
18 required by either subsection (1) or subsection (2) of this
19 Section, the municipality shall transmit to the Department of
20 Commerce and Community Affairs and the Department of Revenue
21 the following:
22 (a) if applicable, a certified copy of the
23 ordinance required by subsection (1) accompanied by a
24 complete list of street names and the range of street
25 numbers of each street located within the redevelopment
26 project area for which payments are to be made under this
27 Section in both the base year and in the year preceding
28 the payment year; and the addresses of persons registered
29 with the Department of Revenue; and, the name under which
30 each such retailer or serviceman conducts business at
31 that address, if different from the corporate name; and
32 the Illinois Business Tax Number of each such person (The
33 municipality shall update this list in the event of a
34 revision of the redevelopment project area, or the
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1 opening or closing or name change of any street or part
2 thereof in the redevelopment project area, or if the
3 Department of Revenue informs the municipality of an
4 addition or deletion pursuant to the monthly updates
5 given by the Department.);
6 (b) if applicable, a certified copy of the
7 ordinance required by subsection (2) accompanied by a
8 complete list of street names and range of street numbers
9 of each street located within the redevelopment project
10 area, the utility customers in the project area, and the
11 utilities serving the redevelopment project areas;
12 (c) certified copies of the ordinances approving
13 the redevelopment plan and designating the redevelopment
14 project area;
15 (d) a copy of the redevelopment plan as approved by
16 the municipality;
17 (e) an opinion of legal counsel that the
18 municipality had complied with the requirements of this
19 Act; and
20 (f) a certification by the chief executive officer
21 of the municipality that with regard to a redevelopment
22 project area: (1) the municipality has committed all of
23 the municipal tax increment created pursuant to this Act
24 for deposit in the special tax allocation fund, (2) the
25 redevelopment projects described in the redevelopment
26 plan would not be completed without the use of State
27 incremental revenues pursuant to this Act, (3) the
28 municipality will pursue the implementation of the
29 redevelopment plan in an expeditious manner, (4) the
30 incremental revenues created pursuant to this Section
31 will be exclusively utilized for the development of the
32 redevelopment project area, and (5) the increased revenue
33 created pursuant to this Section shall be used
34 exclusively to pay redevelopment project costs as defined
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1 in this Act.
2 (4) The Department of Revenue upon receipt of the
3 information set forth in paragraph (b) of subsection (3)
4 shall immediately forward such information to each public
5 utility furnishing natural gas or electricity to buildings
6 within the redevelopment project area. Upon receipt of such
7 information, each public utility shall promptly:
8 (a) provide to the Department of Revenue and the
9 municipality separate lists of the names and addresses of
10 persons within the redevelopment project area receiving
11 natural gas or electricity from such public utility.
12 Such list shall be updated as necessary by the public
13 utility. Each month thereafter the public utility shall
14 furnish the Department of Revenue and the municipality
15 with an itemized listing of charges imposed pursuant to
16 Sections 9-221 and 9-222 of the Public Utilities Act on
17 persons within the redevelopment project area.
18 (b) determine the amount of charges imposed
19 pursuant to Sections 9-221 and 9-222 of the Public
20 Utilities Act on persons in the redevelopment project
21 area during the base year, both as a result of municipal
22 taxes on electricity and gas and as a result of State
23 taxes on electricity and gas and certify such amounts
24 both to the municipality and the Department of Revenue;
25 and
26 (c) determine the amount of charges imposed
27 pursuant to Sections 9-221 and 9-222 of the Public
28 Utilities Act on persons in the redevelopment project
29 area on a monthly basis during the base year, both as a
30 result of State and municipal taxes on electricity and
31 gas and certify such separate amounts both to the
32 municipality and the Department of Revenue.
33 After the determinations are made in paragraphs (b) and
34 (c), the public utility shall monthly during the existence of
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1 the redevelopment project area notify the Department of
2 Revenue and the municipality of any increase in charges over
3 the base year determinations made pursuant to paragraphs (b)
4 and (c).
5 (5) The payments authorized under this Section shall be
6 deposited by the municipal treasurer in the special tax
7 allocation fund of the municipality, which for accounting
8 purposes shall identify the sources of each payment as:
9 municipal receipts from the State retailers occupation,
10 service occupation, use and service use taxes; and municipal
11 public utility taxes charged to customers under the Public
12 Utilities Act and State public utility taxes charged to
13 customers under the Public Utilities Act.
14 (6) Any municipality receiving payments authorized under
15 this Section for any redevelopment project area or area
16 within a State Sales Tax Boundary within the municipality
17 shall submit to the Department of Revenue and to the taxing
18 districts which are sent the notice required by Section 6 of
19 this Act annually within 180 days after the close of each
20 municipal fiscal year the following information for the
21 immediately preceding fiscal year:
22 (a) Any amendments to the redevelopment plan, the
23 redevelopment project area, or the State Sales Tax
24 Boundary.
25 (b) Audited financial statements of the special tax
26 allocation fund.
27 (c) Certification of the Chief Executive Officer of
28 the municipality that the municipality has complied with
29 all of the requirements of this Act during the preceding
30 fiscal year.
31 (d) An opinion of legal counsel that the
32 municipality is in compliance with this Act.
33 (e) An analysis of the special tax allocation fund
34 which sets forth:
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1 (1) the balance in the special tax allocation
2 fund at the beginning of the fiscal year;
3 (2) all amounts deposited in the special tax
4 allocation fund by source;
5 (3) all expenditures from the special tax
6 allocation fund by category of permissible
7 redevelopment project cost; and
8 (4) the balance in the special tax allocation
9 fund at the end of the fiscal year including a
10 breakdown of that balance by source. Such ending
11 balance shall be designated as surplus if it is not
12 required for anticipated redevelopment project costs
13 or to pay debt service on bonds issued to finance
14 redevelopment project costs, as set forth in Section
15 11-74.4-7 hereof.
16 (f) A description of all property purchased by the
17 municipality within the redevelopment project area
18 including
19 1. Street address
20 2. Approximate size or description of property
21 3. Purchase price
22 4. Seller of property.
23 (g) A statement setting forth all activities
24 undertaken in furtherance of the objectives of the
25 redevelopment plan, including:
26 1. Any project implemented in the preceding
27 fiscal year
28 2. A description of the redevelopment
29 activities undertaken
30 3. A description of any agreements entered
31 into by the municipality with regard to the
32 disposition or redevelopment of any property within
33 the redevelopment project area or the area within
34 the State Sales Tax Boundary.
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1 (h) With regard to any obligations issued by the
2 municipality:
3 1. copies of bond ordinances or resolutions
4 2. copies of any official statements
5 3. an analysis prepared by financial advisor
6 or underwriter setting forth: (a) nature and term of
7 obligation; and (b) projected debt service including
8 required reserves and debt coverage.
9 (i) A certified audit report reviewing compliance
10 with this statute performed by an independent public
11 accountant certified and licensed by the authority of the
12 State of Illinois. The financial portion of the audit
13 must be conducted in accordance with Standards for Audits
14 of Governmental Organizations, Programs, Activities, and
15 Functions adopted by the Comptroller General of the
16 United States (1981), as amended. The audit report shall
17 contain a letter from the independent certified public
18 accountant indicating compliance or noncompliance with
19 the requirements of subsection (q) of Section 11-74.4-3.
20 If the audit indicates that expenditures are not in
21 compliance with the law, the Department of Revenue shall
22 withhold State sales and utility tax increment payments
23 to the municipality until compliance has been reached,
24 and an amount equal to the ineligible expenditures has
25 been returned to the Special Tax Allocation Fund.
26 (6.1) After July 29, 1988, any funds which have not been
27 designated for use in a specific development project in the
28 annual report shall be designated as surplus. No funds may be
29 held in the Special Tax Allocation Fund for more than 36
30 months from the date of receipt unless the money is required
31 for payment of contractual obligations for specific
32 development project costs. If held for more than 36 months in
33 violation of the preceding sentence, such funds shall be
34 designated as surplus. Any funds designated as surplus must
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1 first be used for early redemption of any bond obligations.
2 Any funds designated as surplus which are not disposed of as
3 otherwise provided in this paragraph, shall be distributed as
4 surplus as provided in Section 11-74.4-7.
5 (7) Any appropriation made pursuant to this Section for
6 the 1987 State fiscal year shall not exceed the amount of $7
7 million and for the 1988 State fiscal year the amount of $10
8 million. The amount which shall be distributed to each
9 municipality shall be the incremental revenue to which each
10 municipality is entitled as calculated by the Department of
11 Revenue, unless the requests of the municipality exceed the
12 appropriation, then the amount to which each municipality
13 shall be entitled shall be prorated among the municipalities
14 in the same proportion as the increment to which the
15 municipality would be entitled bears to the total increment
16 which all municipalities would receive in the absence of this
17 limitation, provided that no municipality may receive an
18 amount in excess of 15% of the appropriation. For the 1987
19 Net State Sales Tax Increment payable in Fiscal Year 1989, no
20 municipality shall receive more than 7.5% of the total
21 appropriation; provided, however, that any of the
22 appropriation remaining after such distribution shall be
23 prorated among municipalities on the basis of their pro rata
24 share of the total increment. Beginning on January 1, 1993,
25 each municipality's proportional share of the Illinois Tax
26 Increment Fund shall be determined by adding the annual Net
27 State Sales Tax Increment and the annual Net Utility Tax
28 Increment to determine the Annual Total Increment. The ratio
29 of the Annual Total Increment of each municipality to the
30 Annual Total Increment for all municipalities, as most
31 recently calculated by the Department, shall determine the
32 proportional shares of the Illinois Tax Increment Fund to be
33 distributed to each municipality.
34 (7.1) No distribution of Net State Sales Tax Increment
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1 to a municipality for an area within a State Sales Tax
2 Boundary shall exceed in any State Fiscal Year an amount
3 equal to 3 times the sum of the Municipal Sales Tax
4 Increment, the real property tax increment and deposits of
5 funds from other sources, excluding state and federal funds,
6 as certified by the city treasurer to the Department of
7 Revenue for an area within a State Sales Tax Boundary. After
8 July 29, 1988, for those municipalities which issue bonds
9 between June 1, 1988 and 3 years from July 29, 1988 to
10 finance redevelopment projects within the area in a State
11 Sales Tax Boundary, the distribution of Net State Sales Tax
12 Increment during the 16th through 20th years from the date of
13 issuance of the bonds shall not exceed in any State Fiscal
14 Year an amount equal to 2 times the sum of the Municipal
15 Sales Tax Increment, the real property tax increment and
16 deposits of funds from other sources, excluding State and
17 federal funds.
18 (8) Any person who knowingly files or causes to be filed
19 false information for the purpose of increasing the amount of
20 any State tax incremental revenue commits a Class A
21 misdemeanor.
22 (9) The following procedures shall be followed to
23 determine whether municipalities have complied with the Act
24 for the purpose of receiving distributions after July 1, 1989
25 pursuant to subsection (1) of this Section 11-74.4-8a.
26 (a) The Department of Revenue shall conduct a
27 preliminary review of the redevelopment project areas and
28 redevelopment plans pertaining to those municipalities
29 receiving payments from the State pursuant to subsection
30 (1) of Section 8a of this Act for the purpose of
31 determining compliance with the following standards:
32 (1) For any municipality with a population of
33 more than 12,000 as determined by the 1980 U.S.
34 Census: (a) the redevelopment project area, or in
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1 the case of a municipality which has more than one
2 redevelopment project area, each such area, must be
3 contiguous and the total of all such areas shall not
4 comprise more than 25% of the area within the
5 municipal boundaries nor more than 20% of the
6 equalized assessed value of the municipality; (b)
7 the aggregate amount of 1985 taxes in the
8 redevelopment project area, or in the case of a
9 municipality which has more than one redevelopment
10 project area, the total of all such areas, shall be
11 not more than 25% of the total base year taxes paid
12 by retailers and servicemen on transactions at
13 places of business located within the municipality
14 under the Retailers' Occupation Tax Act, the Use Tax
15 Act, the Service Use Tax Act, and the Service
16 Occupation Tax Act. Redevelopment project areas
17 created prior to 1986 are not subject to the above
18 standards if their boundaries were not amended in
19 1986.
20 (2) For any municipality with a population of
21 12,000 or less as determined by the 1980 U.S.
22 Census: (a) the redevelopment project area, or in
23 the case of a municipality which has more than one
24 redevelopment project area, each such area, must be
25 contiguous and the total of all such areas shall not
26 comprise more than 35% of the area within the
27 municipal boundaries nor more than 30% of the
28 equalized assessed value of the municipality; (b)
29 the aggregate amount of 1985 taxes in the
30 redevelopment project area, or in the case of a
31 municipality which has more than one redevelopment
32 project area, the total of all such areas, shall not
33 be more than 35% of the total base year taxes paid
34 by retailers and servicemen on transactions at
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1 places of business located within the municipality
2 under the Retailers' Occupation Tax Act, the Use Tax
3 Act, the Service Use Tax Act, and the Service
4 Occupation Tax Act. Redevelopment project areas
5 created prior to 1986 are not subject to the above
6 standards if their boundaries were not amended in
7 1986.
8 (3) Such preliminary review of the
9 redevelopment project areas applying the above
10 standards shall be completed by November 1, 1988,
11 and on or before November 1, 1988, the Department
12 shall notify each municipality by certified mail,
13 return receipt requested that either (1) the
14 Department requires additional time in which to
15 complete its preliminary review; or (2) the
16 Department is issuing either (a) a Certificate of
17 Eligibility or (b) a Notice of Review. If the
18 Department notifies a municipality that it requires
19 additional time to complete its preliminary
20 investigation, it shall complete its preliminary
21 investigation no later than February 1, 1989, and by
22 February 1, 1989 shall issue to each municipality
23 either (a) a Certificate of Eligibility or (b) a
24 Notice of Review. A redevelopment project area for
25 which a Certificate of Eligibility has been issued
26 shall be deemed a "State Sales Tax Boundary."
27 (4) The Department of Revenue shall also issue
28 a Notice of Review if the Department has received a
29 request by November 1, 1988 to conduct such a review
30 from taxpayers in the municipality, local taxing
31 districts located in the municipality or the State
32 of Illinois, or if the redevelopment project area
33 has more than 5 retailers and has had growth in
34 State sales tax revenue of more than 15% from
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1 calendar year 1985 to 1986.
2 (b) For those municipalities receiving a Notice of
3 Review, the Department will conduct a secondary review
4 consisting of: (i) application of the above standards
5 contained in subsection (9)(a)(1)(a) and (b) or
6 (9)(a)(2)(a) and (b), and (ii) the definitions of
7 blighted and conservation area provided for in Section
8 11-74.4-3. Such secondary review shall be completed by
9 July 1, 1989.
10 Upon completion of the secondary review, the
11 Department will issue (a) a Certificate of Eligibility or
12 (b) a Preliminary Notice of Deficiency. Any municipality
13 receiving a Preliminary Notice of Deficiency may amend
14 its redevelopment project area to meet the standards and
15 definitions set forth in this paragraph (b). This amended
16 redevelopment project area shall become the "State Sales
17 Tax Boundary" for purposes of determining the State Sales
18 Tax Increment.
19 (c) If the municipality advises the Department of
20 its intent to comply with the requirements of paragraph
21 (b) of this subsection outlined in the Preliminary Notice
22 of Deficiency, within 120 days of receiving such notice
23 from the Department, the municipality shall submit
24 documentation to the Department of the actions it has
25 taken to cure any deficiencies. Thereafter, within 30
26 days of the receipt of the documentation, the Department
27 shall either issue a Certificate of Eligibility or a
28 Final Notice of Deficiency. If the municipality fails to
29 advise the Department of its intent to comply or fails to
30 submit adequate documentation of such cure of
31 deficiencies the Department shall issue a Final Notice of
32 Deficiency that provides that the municipality is
33 ineligible for payment of the Net State Sales Tax
34 Increment.
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1 (d) If the Department issues a final determination
2 of ineligibility, the municipality shall have 30 days
3 from the receipt of determination to protest and request
4 a hearing. Such hearing shall be conducted in accordance
5 with Sections 10-25, 10-35, 10-40, and 10-50 of the
6 Illinois Administrative Procedure Act. The decision
7 following the hearing shall be subject to review under
8 the Administrative Review Law.
9 (e) Any Certificate of Eligibility issued pursuant
10 to this subsection 9 shall be binding only on the State
11 for the purposes of establishing municipal eligibility to
12 receive revenue pursuant to subsection (1) of this
13 Section 11-74.4-8a.
14 (f) It is the intent of this subsection that the
15 periods of time to cure deficiencies shall be in addition
16 to all other periods of time permitted by this Section,
17 regardless of the date by which plans were originally
18 required to be adopted. To cure said deficiencies,
19 however, the municipality shall be required to follow the
20 procedures and requirements pertaining to amendments, as
21 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
22 (10) If a municipality adopts a State Sales Tax Boundary
23 in accordance with the provisions of subsection (9) of this
24 Section, such boundaries shall subsequently be utilized to
25 determine Revised Initial Sales Tax Amounts and the Net State
26 Sales Tax Increment; provided, however, that such revised
27 State Sales Tax Boundary shall not have any effect upon the
28 boundary of the redevelopment project area established for
29 the purposes of determining the ad valorem taxes on real
30 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
31 Act nor upon the municipality's authority to implement the
32 redevelopment plan for that redevelopment project area. For
33 any redevelopment project area with a smaller State Sales Tax
34 Boundary within its area, the municipality may annually elect
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1 to deposit the Municipal Sales Tax Increment for the
2 redevelopment project area in the special tax allocation fund
3 and shall certify the amount to the Department prior to
4 receipt of the Net State Sales Tax Increment. Any
5 municipality required by subsection (9) to establish a State
6 Sales Tax Boundary for one or more of its redevelopment
7 project areas shall submit all necessary information required
8 by the Department concerning such boundary and the retailers
9 therein, by October 1, 1989, after complying with the
10 procedures for amendment set forth in Sections 11-74.4-5 and
11 11-74.4-6 of this Act. Net State Sales Tax Increment
12 produced within the State Sales Tax Boundary shall be spent
13 only within that area. However expenditures of all municipal
14 property tax increment and municipal sales tax increment in a
15 redevelopment project area are not required to be spent
16 within the smaller State Sales Tax Boundary within such
17 redevelopment project area.
18 (11) The Department of Revenue shall have the authority
19 to issue rules and regulations for purposes of this Section.
20 and regulations for purposes of this Section.
21 (12) If, under Section 5.4.1 of the Illinois Enterprise
22 Zone Act, a municipality determines that property that lies
23 within a State Sales Tax Boundary has an improvement,
24 rehabilitation, or renovation that is entitled to a property
25 tax abatement, then that property along with any
26 improvements, rehabilitation, or renovations shall be
27 immediately removed from any State Sales Tax Boundary. The
28 municipality that made the determination shall notify the
29 Department of Revenue within 30 days after the determination.
30 Once a property is removed from the State Sales Tax Boundary
31 because of the existence of a property tax abatement
32 resulting from an enterprise zone, then that property shall
33 not be permitted to be amended into a State Sales Tax
34 Boundary.
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1 (Source: P.A. 90-258, eff. 7-30-97.)
2 Section 155. The Local Mass Transit District Act is
3 amended by re-enacting Section 5.01 as follows:
4 (70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
5 Sec. 5.01. Metro East Mass Transit District; use and
6 occupation taxes.
7 (a) The Board of Trustees of any Metro East Mass Transit
8 District may, by ordinance adopted with the concurrence of
9 two-thirds of the then trustees, impose throughout the
10 District any or all of the taxes and fees provided in this
11 Section. All taxes and fees imposed under this Section shall
12 be used only for public mass transportation systems, and the
13 amount used to provide mass transit service to unserved areas
14 of the District shall be in the same proportion to the total
15 proceeds as the number of persons residing in the unserved
16 areas is to the total population of the District. Except as
17 otherwise provided in this Act, taxes imposed under this
18 Section and civil penalties imposed incident thereto shall be
19 collected and enforced by the State Department of Revenue.
20 The Department shall have the power to administer and enforce
21 the taxes and to determine all rights for refunds for
22 erroneous payments of the taxes.
23 (b) The Board may impose a Metro East Mass Transit
24 District Retailers' Occupation Tax upon all persons engaged
25 in the business of selling tangible personal property at
26 retail in the district at a rate of 1/4 of 1%, or as
27 authorized under subsection (d-5) of this Section, of the
28 gross receipts from the sales made in the course of such
29 business within the district. The tax imposed under this
30 Section and all civil penalties that may be assessed as an
31 incident thereof shall be collected and enforced by the State
32 Department of Revenue. The Department shall have full power
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1 to administer and enforce this Section; to collect all taxes
2 and penalties so collected in the manner hereinafter
3 provided; and to determine all rights to credit memoranda
4 arising on account of the erroneous payment of tax or penalty
5 hereunder. In the administration of, and compliance with,
6 this Section, the Department and persons who are subject to
7 this Section shall have the same rights, remedies,
8 privileges, immunities, powers and duties, and be subject to
9 the same conditions, restrictions, limitations, penalties,
10 exclusions, exemptions and definitions of terms and employ
11 the same modes of procedure, as are prescribed in Sections 1,
12 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect
13 to all provisions therein other than the State rate of tax),
14 2c, 3 (except as to the disposition of taxes and penalties
15 collected), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
16 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 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 herein.
20 Persons subject to any tax imposed under the Section may
21 reimburse themselves for their seller's tax liability
22 hereunder by separately stating the tax as an additional
23 charge, which charge may be stated in combination, in a
24 single amount, with State taxes that sellers are required to
25 collect under the Use Tax Act, in accordance with such
26 bracket schedules as the Department may prescribe.
27 Whenever the Department determines that a refund should
28 be made under this Section to a claimant instead of issuing a
29 credit memorandum, the Department shall notify the State
30 Comptroller, who shall cause the warrant to be drawn for the
31 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 Metro East Mass Transit
34 District tax fund established under paragraph (g) of this
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1 Section.
2 If a tax is imposed under this subsection (b), a tax
3 shall also be imposed under subsections (c) and (d) of this
4 Section.
5 For the purpose of determining whether a tax authorized
6 under this Section is applicable, a retail sale, by a
7 producer of coal or other mineral mined in Illinois, is a
8 sale at retail at the place where the coal or other mineral
9 mined in Illinois is extracted from the earth. This
10 paragraph does not apply to coal or other mineral when it is
11 delivered or shipped by the seller to the purchaser at a
12 point outside Illinois so that the sale is exempt under the
13 Federal Constitution as a sale in interstate or foreign
14 commerce.
15 Nothing in this Section shall be construed to authorize
16 the Metro East Mass Transit District to impose a tax upon the
17 privilege of engaging in any business which under the
18 Constitution of the United States may not be made the subject
19 of taxation by this State.
20 (c) If a tax has been imposed under subsection (b), a
21 Metro East Mass Transit District Service Occupation Tax shall
22 also be imposed upon all persons engaged, in the district, in
23 the business of making sales of service, who, as an incident
24 to making those sales of service, transfer tangible personal
25 property within the District, either in the form of tangible
26 personal property or in the form of real estate as an
27 incident to a sale of service. The tax rate shall be 1/4%, or
28 as authorized under subsection (d-5) of this Section, of the
29 selling price of tangible personal property so transferred
30 within the district. The tax imposed under this paragraph
31 and all civil penalties that may be assessed as an incident
32 thereof shall be collected and enforced by the State
33 Department of Revenue. The Department shall have full power
34 to administer and enforce this paragraph; to collect all
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1 taxes and penalties due hereunder; to dispose of taxes and
2 penalties so collected in the manner hereinafter provided;
3 and to determine all rights to credit memoranda arising on
4 account of the erroneous payment of tax or penalty hereunder.
5 In the administration of, and compliance with this paragraph,
6 the Department and persons who are subject to this paragraph
7 shall have the same rights, remedies, privileges, immunities,
8 powers and duties, and be subject to the same conditions,
9 restrictions, limitations, penalties, exclusions, exemptions
10 and definitions of terms and employ the same modes of
11 procedure as are prescribed in Sections 1a-1, 2 (except that
12 the reference to State in the definition of supplier
13 maintaining a place of business in this State shall mean the
14 Authority), 2a, 3 through 3-50 (in respect to all provisions
15 therein other than the State rate of tax), 4 (except that the
16 reference to the State shall be to the Authority), 5, 7, 8
17 (except that the jurisdiction to which the tax shall be a
18 debt to the extent indicated in that Section 8 shall be the
19 District), 9 (except as to the disposition of taxes and
20 penalties collected, and except that the returned merchandise
21 credit for this tax may not be taken against any State tax),
22 10, 11, 12 (except the reference therein to Section 2b of the
23 Retailers' Occupation Tax Act), 13 (except that any reference
24 to the State shall mean the District), the first paragraph of
25 Section 15, 16, 17, 18, 19 and 20 of the Service Occupation
26 Tax Act and Section 3-7 of the Uniform Penalty and Interest
27 Act, as fully as if those provisions 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 serviceman's tax liability hereunder by separately stating
31 the tax as an additional charge, which charge may be stated
32 in combination, in a single amount, with State tax that
33 servicemen are authorized to collect under the Service Use
34 Tax Act, in accordance with such bracket schedules as the
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1 Department may prescribe.
2 Whenever the Department determines that a refund should
3 be made under this paragraph to a claimant instead of issuing
4 a credit memorandum, the Department shall notify the State
5 Comptroller, who shall cause the warrant to be drawn for the
6 amount specified, and to the person named, in the
7 notification from the Department. The refund shall be paid
8 by the State Treasurer out of the Metro East Mass Transit
9 District tax fund established under paragraph (g) of this
10 Section.
11 Nothing in this paragraph shall be construed to authorize
12 the District to impose a tax upon the privilege of engaging
13 in any business which under the Constitution of the United
14 States may not be made the subject of taxation by the State.
15 (d) If a tax has been imposed under subsection (b), a
16 Metro East Mass Transit District Use Tax shall also be
17 imposed upon the privilege of using, in the district, any
18 item of tangible personal property that is purchased outside
19 the district at retail from a retailer, and that is titled or
20 registered with an agency of this State's government, at a
21 rate of 1/4%, or as authorized under subsection (d-5) of this
22 Section, of the selling price of the tangible personal
23 property within the District, as "selling price" is defined
24 in the Use Tax Act. The tax shall be collected from persons
25 whose Illinois address for titling or registration purposes
26 is given as being in the District. The tax shall be
27 collected by the Department of Revenue for the Metro East
28 Mass Transit District. The tax must be paid to the State, or
29 an exemption determination must be obtained from the
30 Department of Revenue, before the title or certificate of
31 registration for the property may be issued. The tax or
32 proof of exemption may be transmitted to the Department by
33 way of the State agency with which, or the State officer with
34 whom, the tangible personal property must be titled or
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1 registered if the Department and the State agency or State
2 officer determine that this procedure will expedite the
3 processing of applications for title or registration.
4 The Department shall have full power to administer and
5 enforce this paragraph; to collect all taxes, penalties and
6 interest due hereunder; to dispose of taxes, penalties and
7 interest so collected in the manner hereinafter provided; and
8 to determine all rights to credit memoranda or refunds
9 arising on account of the erroneous payment of tax, penalty
10 or interest hereunder. In the administration of, and
11 compliance with, this paragraph, the Department and persons
12 who are subject to this paragraph shall have the same rights,
13 remedies, privileges, immunities, powers and duties, and be
14 subject to the same conditions, restrictions, limitations,
15 penalties, exclusions, exemptions and definitions of terms
16 and employ the same modes of procedure, as are prescribed in
17 Sections 2 (except the definition of "retailer maintaining a
18 place of business in this State"), 3 through 3-80 (except
19 provisions pertaining to the State rate of tax, and except
20 provisions concerning collection or refunding of the tax by
21 retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
22 pertaining to claims by retailers and except the last
23 paragraph concerning refunds), 20, 21 and 22 of the Use Tax
24 Act and Section 3-7 of the Uniform Penalty and Interest Act,
25 that are not inconsistent with this paragraph, as fully as if
26 those provisions were set forth herein.
27 Whenever the Department determines that a refund should
28 be made under this paragraph to a claimant instead of issuing
29 a credit memorandum, the Department shall notify the State
30 Comptroller, who shall cause the order to be drawn for the
31 amount specified, and to the person named, in the
32 notification from the Department. The refund shall be paid by
33 the State Treasurer out of the Metro East Mass Transit
34 District tax fund established under paragraph (g) of this
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1 Section.
2 (d-5) The county board of any county participating in
3 the Metro East Mass Transit District may authorize, by
4 ordinance, a referendum on the question of whether the tax
5 rates for the Metro East Mass Transit District Retailers'
6 Occupation Tax, the Metro East Mass Transit District Service
7 Occupation Tax, and the Metro East Mass Transit District Use
8 Tax for the District should be increased from 0.25% to 0.75%.
9 Upon adopting the ordinance, the county board shall certify
10 the proposition to the proper election officials who shall
11 submit the proposition to the voters of the District at the
12 next election, in accordance with the general election law.
13 The proposition shall be in substantially the following
14 form:
15 Shall the tax rates for the Metro East Mass Transit
16 District Retailers' Occupation Tax, the Metro East Mass
17 Transit District Service Occupation Tax, and the Metro
18 East Mass Transit District Use Tax be increased from
19 0.25% to 0.75%?
20 The votes shall be recorded as "YES" or "NO". If a
21 majority of all votes cast on the proposition are for the
22 increase in the tax rates, the Metro East Mass Transit
23 District shall begin imposing the increased rates in the
24 District, and the Department of Revenue shall begin
25 collecting the increased amounts, as provided under this
26 Section. An ordinance imposing or discontinuing a tax
27 hereunder or effecting a change in the rate thereof shall be
28 adopted and a certified copy thereof filed with the
29 Department on or before the first day of October, whereupon
30 the Department shall proceed to administer and enforce this
31 Section as of the first day of January next following the
32 adoption and filing.
33 If the voters have approved a referendum under this
34 subsection, before November 1, 1994, to increase the tax rate
SB144 Engrossed -228- LRB9101598PTpk
1 under this subsection, the Metro East Mass Transit District
2 Board of Trustees may adopt by a majority vote an ordinance
3 at any time before January 1, 1995 that excludes from the
4 rate increase tangible personal property that is titled or
5 registered with an agency of this State's government. The
6 ordinance excluding titled or registered tangible personal
7 property from the rate increase must be filed with the
8 Department at least 15 days before its effective date. At any
9 time after adopting an ordinance excluding from the rate
10 increase tangible personal property that is titled or
11 registered with an agency of this State's government, the
12 Metro East Mass Transit District Board of Trustees may adopt
13 an ordinance applying the rate increase to that tangible
14 personal property. The ordinance shall be adopted, and a
15 certified copy of that ordinance shall be filed with the
16 Department, on or before October 1, whereupon the Department
17 shall proceed to administer and enforce the rate increase
18 against tangible personal property titled or registered with
19 an agency of this State's government as of the following
20 January 1. After December 31, 1995, any reimposed rate
21 increase in effect under this subsection shall no longer
22 apply to tangible personal property titled or registered with
23 an agency of this State's government. Beginning January 1,
24 1996, the Board of Trustees of any Metro East Mass Transit
25 District may never reimpose a previously excluded tax rate
26 increase on tangible personal property titled or registered
27 with an agency of this State's government.
28 (d-6) If the Board of Trustees of any Metro East Mass
29 Transit District has imposed a rate increase under subsection
30 (d-5) and filed an ordinance with the Department of Revenue
31 excluding titled property from the higher rate, then that
32 Board may, by ordinance adopted with the concurrence of
33 two-thirds of the then trustees, impose throughout the
34 District a fee. The fee on the excluded property shall not
SB144 Engrossed -229- LRB9101598PTpk
1 exceed $20 per retail transaction or an amount equal to the
2 amount of tax excluded, whichever is less, on tangible
3 personal property that is titled or registered with an agency
4 of this State's government. The Board of Trustees of any
5 Metro East Mass Transit District shall have full power to
6 administer and enforce this subsection and to determine all
7 rights to credit memoranda or refunds arising on account of
8 the erroneous payment of the fee hereunder. The Board shall
9 proceed to administer and enforce this subsection as of the
10 first day of the second month following the adoption of the
11 ordinance.
12 (d-7) If a fee has been imposed under subsection (d-6),
13 a fee shall also be imposed upon the privilege of using, in
14 the district, any item of tangible personal property that is
15 titled or registered with any agency of this State's
16 government, in an amount equal to the amount of the fee
17 imposed under subsection (d-6). The Board of Trustees of any
18 Metro East Mass Transit District shall have full power to
19 administer and enforce this subsection and to determine all
20 rights to credit memoranda or refunds arising on account of
21 the erroneous payment of the fee hereunder. The Board shall
22 proceed to administer and enforce this subsection
23 concurrently with the administration of the fee imposed under
24 subsection (d-6).
25 (d-8) No item of titled property shall be subject to
26 both the higher rate approved by referendum, as authorized
27 under subsection (d-5), and any fee imposed under subsection
28 (d-6) or (d-7).
29 (d-9) If fees have been imposed under subsections (d-6)
30 and (d-7), the Board shall forward a copy of the ordinance
31 adopting such fees, which shall include all zip codes in
32 whole or in part within the boundaries of the district, to
33 the Secretary of State within thirty days. By the 25th of
34 each month, the Secretary of State shall subsequently provide
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1 the Board with a list of identifiable retail transactions
2 subject to the .25% rate occurring within the zip codes which
3 are in whole or in part within the boundaries of the district
4 and a list of title applications for addresses within the
5 boundaries of the district for the previous month.
6 (d-10) In the event that a retailer fails to pay
7 applicable fees within 30 days of the date of the
8 transaction, a penalty shall be assessed at the rate of 25%
9 of the amount of fees. Interest on both late fees and
10 penalties shall be assessed at the rate of 1% per month. All
11 fees, penalties, and attorney fees shall constitute a lien on
12 the personal and real property of the retailer. The Board of
13 Trustees of any Metro East Transit District shall have full
14 power to administer and enforce this subsection.
15 (e) A certificate of registration issued by the State
16 Department of Revenue to a retailer under the Retailers'
17 Occupation Tax Act or under the Service Occupation Tax Act
18 shall permit the registrant to engage in a business that is
19 taxed under the tax imposed under paragraphs (b), (c) or (d)
20 of this Section and no additional registration shall be
21 required under the tax. A certificate issued under the Use
22 Tax Act or the Service Use Tax Act shall be applicable with
23 regard to any tax imposed under paragraph (c) of this
24 Section.
25 (f) The Board may impose a replacement vehicle tax of
26 $50 on any passenger car, as defined in Section 1-157 of the
27 Illinois Vehicle Code, purchased within the district area by
28 or on behalf of an insurance company to replace a passenger
29 car of an insured person in settlement of a total loss claim.
30 The tax imposed may not become effective before the first day
31 of the month following the passage of the ordinance imposing
32 the tax and receipt of a certified copy of the ordinance by
33 the Department of Revenue. The Department of Revenue shall
34 collect the tax for the district in accordance with Sections
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1 3-2002 and 3-2003 of the Illinois Vehicle Code.
2 The Department shall immediately pay over to the State
3 Treasurer, ex officio, as trustee, all taxes collected
4 hereunder. On or before the 25th day of each calendar month,
5 the Department shall prepare and certify to the Comptroller
6 the disbursement of stated sums of money to named districts,
7 the districts to be those from which retailers have paid
8 taxes or penalties hereunder to the Department during the
9 second preceding calendar month. The amount to be paid to
10 each district shall be the amount collected hereunder during
11 the second preceding calendar month by the Department, less
12 any amount determined by the Department to be necessary for
13 the payment of refunds. Within 10 days after receipt by the
14 Comptroller of the disbursement certification to the
15 districts, provided for in this Section to be given to the
16 Comptroller by the Department, the Comptroller shall cause
17 the orders to be drawn for the respective amounts in
18 accordance with the directions contained in the
19 certification.
20 (g) Any ordinance imposing or discontinuing any tax
21 under this Section shall be adopted and a certified copy
22 thereof filed with the Department on or before June 1,
23 whereupon the Department of Revenue shall proceed to
24 administer and enforce this Section on behalf of the Metro
25 East Mass Transit District as of September 1 next following
26 such adoption and filing. Beginning January 1, 1992, an
27 ordinance or resolution imposing or discontinuing the tax
28 hereunder shall be adopted and a certified copy thereof filed
29 with the Department on or before the first day of July,
30 whereupon the Department shall proceed to administer and
31 enforce this Section as of the first day of October next
32 following such adoption and filing. Beginning January 1,
33 1993, except as provided in subsection (d-5) of this Section,
34 an ordinance or resolution imposing or discontinuing the tax
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1 hereunder shall be adopted and a certified copy thereof filed
2 with the Department on or before the first day of October,
3 whereupon the Department shall proceed to administer and
4 enforce this Section as of the first day of January next
5 following such adoption and filing.
6 (h) The State Department of Revenue shall, upon
7 collecting any taxes as provided in this Section, pay the
8 taxes over to the State Treasurer as trustee for the
9 District. The taxes shall be held in a trust fund outside the
10 State Treasury. On or before the 25th day of each calendar
11 month, the State Department of Revenue shall prepare and
12 certify to the Comptroller of the State of Illinois the
13 amount to be paid to the District, which shall be the then
14 balance in the fund, less any amount determined by the
15 Department to be necessary for the payment of refunds. Within
16 10 days after receipt by the Comptroller of the certification
17 of the amount to be paid to the District, the Comptroller
18 shall cause an order to be drawn for payment for the amount
19 in accordance with the direction in the certification.
20 (Source: P.A. 88-115; 88-672, eff. 12-14-94; 89-436, eff.
21 1-1-96; 89-705, eff. 1-31-97.)
22 Section 160. The Regional Transportation Authority Act
23 is amended by re-enacting Sections 4.01, 4.03, 4.04, and 4.09
24 follows:
25 (70 ILCS 3615/4.01) (from Ch. 111 2/3, par. 704.01)
26 Sec. 4.01. Budget and Program.
27 (a) The Board shall control the finances of the
28 Authority. It shall by ordinance appropriate money to perform
29 the Authority's purposes and provide for payment of debts and
30 expenses of the Authority. Each year the Authority shall
31 prepare and publish a comprehensive annual budget and program
32 document describing the state of the Authority and presenting
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1 for the forthcoming fiscal year the Authority's plans for
2 such operations and capital expenditures as the Authority
3 intends to undertake and the means by which it intends to
4 finance them. The proposed program and budget shall contain a
5 statement of the funds estimated to be on hand at the
6 beginning of the fiscal year, the funds estimated to be
7 received from all sources for such year and the funds
8 estimated to be on hand at the end of such year. After
9 adoption of the Authority's first Five-Year Program, as
10 provided in Section 2.01 of this Act, the proposed program
11 and budget shall specifically identify any respect in which
12 the recommended program deviates from the Authority's then
13 existing Five-Year Program, giving the reasons for such
14 deviation. The fiscal year of the Authority shall begin on
15 January 1st and end on the succeeding December 31st except
16 that the fiscal year that began October 1, 1982, shall end
17 December 31, 1983. By July 1st 1981 and July 1st of each
18 year thereafter the Director of the Illinois Bureau of the
19 Budget shall submit to the Authority an estimate of revenues
20 for the next fiscal year to be collected from the taxes
21 imposed by the Authority and the amounts to be available in
22 the Public Transportation Fund and the Regional
23 Transportation Authority Occupation and Use Tax Replacement
24 Fund. For the fiscal year ending on December 31, 1983, the
25 Board shall report its results from operations and financial
26 condition to the General Assembly and the Governor by January
27 31. For the fiscal year beginning January 1, 1984, and
28 thereafter, the budget and program shall be presented to the
29 General Assembly and the Governor not later than the
30 preceding December 31st. Before the proposed budget and
31 program is adopted, the Authority shall hold at least one
32 public hearing thereon in the metropolitan region. The Board
33 shall hold at least one meeting for consideration of the
34 proposed program and budget with the county board of each of
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1 the several counties in the metropolitan region. After
2 conducting such hearings and holding such meetings and after
3 making such changes in the proposed program and budget as the
4 Board deems appropriate, the Board shall adopt its annual
5 budget ordinance. The ordinance may be adopted only upon the
6 affirmative votes of 9 of its then Directors. The ordinance
7 shall appropriate such sums of money as are deemed necessary
8 to defray all necessary expenses and obligations of the
9 Authority, specifying purposes and the objects or programs
10 for which appropriations are made and the amount appropriated
11 for each object or program. Additional appropriations,
12 transfers between items and other changes in such ordinance
13 may be made from time to time by the Board upon the
14 affirmative votes of 9 of its then Directors.
15 (b) The budget shall show a balance between anticipated
16 revenues from all sources and anticipated expenses including
17 funding of operating deficits or the discharge of
18 encumbrances incurred in prior periods and payment of
19 principal and interest when due, and shall show cash balances
20 sufficient to pay with reasonable promptness all obligations
21 and expenses as incurred.
22 The annual budget and financial plan must show that the
23 level of fares and charges for mass transportation provided
24 by, or under grant or purchase of service contracts of, the
25 Service Boards is sufficient to cause the aggregate of all
26 projected fare revenues from such fares and charges received
27 in each fiscal year to equal at least 50% of the aggregate
28 costs of providing such public transportation in such fiscal
29 year. "Fare revenues" include the proceeds of all fares and
30 charges for services provided, contributions received in
31 connection with public transportation from units of local
32 government other than the Authority and from the State
33 pursuant to subsection (9) of Section 49.19 of the Civil
34 Administrative Code of Illinois, and all other operating
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1 revenues properly included consistent with generally accepted
2 accounting principles but do not include the proceeds of any
3 borrowings. "Costs" include all items properly included as
4 operating costs consistent with generally accepted accounting
5 principles, including administrative costs, but do not
6 include: depreciation; payment of principal and interest on
7 bonds, notes or other evidences of obligation for borrowed
8 money issued by the Authority; payments with respect to
9 public transportation facilities made pursuant to subsection
10 (b) of Section 2.20 of this Act; any payments with respect to
11 rate protection contracts, credit enhancements or liquidity
12 agreements made under Section 4.14; any other cost to which
13 it is reasonably expected that a cash expenditure will not be
14 made; costs up to $5,000,000 annually for passenger security
15 including grants, contracts, personnel, equipment and
16 administrative expenses, except in the case of the Chicago
17 Transit Authority, in which case the term does not include
18 costs spent annually by that entity for protection against
19 crime as required by Section 27a of the Metropolitan Transit
20 Authority Act; or costs as exempted by the Board for projects
21 pursuant to Section 2.09 of this Act.
22 (c) The actual administrative expenses of the Authority
23 for the fiscal year commencing January 1, 1985 may not exceed
24 $5,000,000. The actual administrative expenses of the
25 Authority for the fiscal year commencing January 1, 1986, and
26 for each fiscal year thereafter shall not exceed the maximum
27 administrative expenses for the previous fiscal year plus 5%.
28 "Administrative expenses" are defined for purposes of this
29 Section as all expenses except: (1) capital expenses and
30 purchases of the Authority on behalf of the Service Boards;
31 (2) payments to Service Boards; and (3) payment of principal
32 and interest on bonds, notes or other evidence of obligation
33 for borrowed money issued by the Authority; (4) costs for
34 passenger security including grants, contracts, personnel,
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1 equipment and administrative expenses; (5) payments with
2 respect to public transportation facilities made pursuant to
3 subsection (b) of Section 2.20 of this Act; and (6) any
4 payments with respect to rate protection contracts, credit
5 enhancements or liquidity agreements made pursuant to Section
6 4.14.
7 (d) After withholding 15% of the proceeds of any tax
8 imposed by the Authority and 15% of money received by the
9 Authority from the Regional Transportation Authority
10 Occupation and Use Tax Replacement Fund, the Board shall
11 allocate the proceeds and money remaining to the Service
12 Boards as follows: (1) an amount equal to 85% of the proceeds
13 of those taxes collected within the City of Chicago and 85%
14 of the money received by the Authority on account of
15 transfers to the Regional Transportation Authority Occupation
16 and Use Tax Replacement Fund from the County and Mass Transit
17 District Fund attributable to retail sales within the City of
18 Chicago shall be allocated to the Chicago Transit Authority;
19 (2) an amount equal to 85% of the proceeds of those taxes
20 collected within Cook County outside the City of Chicago and
21 85% of the money received by the Authority on account of
22 transfers to the Regional Transportation Authority Occupation
23 and Use Tax Replacement Fund from the County and Mass Transit
24 District Fund attributable to retail sales within Cook County
25 outside of the city of Chicago shall be allocated 30% to the
26 Chicago Transit Authority, 55% to the Commuter Rail Board and
27 15% to the Suburban Bus Board; and (3) an amount equal to 85%
28 of the proceeds of the taxes collected within the Counties of
29 DuPage, Kane, Lake, McHenry and Will shall be allocated 70%
30 to the Commuter Rail Board and 30% to the Suburban Bus Board.
31 (e) Moneys received by the Authority on account of
32 transfers to the Regional Transportation Authority Occupation
33 and Use Tax Replacement Fund from the State and Local Sales
34 Tax Reform Fund shall be allocated among the Authority and
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1 the Service Boards as follows: 15% of such moneys shall be
2 retained by the Authority and the remaining 85% shall be
3 transferred to the Service Boards as soon as may be
4 practicable after the Authority receives payment. Moneys
5 which are distributable to the Service Boards pursuant to the
6 preceding sentence shall be allocated among the Service
7 Boards on the basis of each Service Board's distribution
8 ratio. The term "distribution ratio" means, for purposes of
9 this subsection (e) of this Section 4.01, the ratio of the
10 total amount distributed to a Service Board pursuant to
11 subsection (d) of Section 4.01 for the immediately preceding
12 calendar year to the total amount distributed to all of the
13 Service Boards pursuant to subsection (d) of Section 4.01 for
14 the immediately preceding calendar year.
15 To further and accomplish the preparation of the annual
16 budget and program as well as the Five-Year Program provided
17 for in Section 2.01 of this Act and to make such interim
18 management decisions as may be necessary, the Board shall
19 employ staff which shall: (1) evaluate for the Board public
20 transportation programs operated or proposed by
21 transportation agencies in terms of goals, costs and relative
22 priorities; (2) keep the Board informed of the public
23 transportation programs and accomplishments of such
24 transportation agencies; and (3) coordinate the development
25 and implementation of public transportation programs to the
26 end that the monies available to the Authority may be
27 expended in the most economical manner possible with the
28 least possible duplication. Under such regulations as the
29 Board may prescribe, all Service Boards, transportation
30 agencies, comprehensive planning agencies or transportation
31 planning agencies in the metropolitan region shall furnish to
32 the Board such information pertaining to public
33 transportation or relevant for plans therefor as it may from
34 time to time require, upon payment to any such agency or
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1 Service Board of the reasonable additional cost of its so
2 providing such information except as may otherwise be
3 provided by agreement with the Authority, and the Board or
4 any duly authorized employee of the Board shall, for the
5 purpose of securing such information, have access to, and the
6 right to examine, all books, documents, papers or records of
7 any such agency or Service Board pertaining to public
8 transportation or relevant for plans therefor.
9 (Source: P.A. 86-16; 86-463; 86-928; 86-1028; 87-764.)
10 (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
11 Sec. 4.03. Taxes.
12 (a) In order to carry out any of the powers or purposes
13 of the Authority, the Board may by ordinance adopted with the
14 concurrence of 9 of the then Directors, impose throughout the
15 metropolitan region any or all of the taxes provided in this
16 Section. Except as otherwise provided in this Act, taxes
17 imposed under this Section and civil penalties imposed
18 incident thereto shall be collected and enforced by the State
19 Department of Revenue. The Department shall have the power to
20 administer and enforce the taxes and to determine all rights
21 for refunds for erroneous payments of the taxes.
22 (b) The Board may impose a public transportation tax
23 upon all persons engaged in the metropolitan region in the
24 business of selling at retail motor fuel for operation of
25 motor vehicles upon public highways. The tax shall be at a
26 rate not to exceed 5% of the gross receipts from the sales of
27 motor fuel in the course of the business. As used in this
28 Act, the term "motor fuel" shall have the same meaning as in
29 the Motor Fuel Tax Act. The Board may provide for details of
30 the tax. The provisions of any tax shall conform, as closely
31 as may be practicable, to the provisions of the Municipal
32 Retailers Occupation Tax Act, including without limitation,
33 conformity to penalties with respect to the tax imposed and
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1 as to the powers of the State Department of Revenue to
2 promulgate and enforce rules and regulations relating to the
3 administration and enforcement of the provisions of the tax
4 imposed, except that reference in the Act to any municipality
5 shall refer to the Authority and the tax shall be imposed
6 only with regard to receipts from sales of motor fuel in the
7 metropolitan region, at rates as limited by this Section.
8 (c) In connection with the tax imposed under paragraph
9 (b) of this Section the Board may impose a tax upon the
10 privilege of using in the metropolitan region motor fuel for
11 the operation of a motor vehicle upon public highways, the
12 tax to be at a rate not in excess of the rate of tax imposed
13 under paragraph (b) of this Section. The Board may provide
14 for details of the tax.
15 (d) The Board may impose a motor vehicle parking tax
16 upon the privilege of parking motor vehicles at off-street
17 parking facilities in the metropolitan region at which a fee
18 is charged, and may provide for reasonable classifications in
19 and exemptions to the tax, for administration and enforcement
20 thereof and for civil penalties and refunds thereunder and
21 may provide criminal penalties thereunder, the maximum
22 penalties not to exceed the maximum criminal penalties
23 provided in the Retailers' Occupation Tax Act. The Authority
24 may collect and enforce the tax itself or by contract with
25 any unit of local government. The State Department of
26 Revenue shall have no responsibility for the collection and
27 enforcement unless the Department agrees with the Authority
28 to undertake the collection and enforcement. As used in this
29 paragraph, the term "parking facility" means a parking area
30 or structure having parking spaces for more than 2 vehicles
31 at which motor vehicles are permitted to park in return for
32 an hourly, daily, or other periodic fee, whether publicly or
33 privately owned, but does not include parking spaces on a
34 public street, the use of which is regulated by parking
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1 meters.
2 (e) The Board may impose a Regional Transportation
3 Authority Retailers' Occupation Tax upon all persons engaged
4 in the business of selling tangible personal property at
5 retail in the metropolitan region. In Cook County the tax
6 rate shall be 1% of the gross receipts from sales of food for
7 human consumption that is to be consumed off the premises
8 where it is sold (other than alcoholic beverages, soft drinks
9 and food that has been prepared for immediate consumption)
10 and prescription and nonprescription medicines, drugs,
11 medical appliances and insulin, urine testing materials,
12 syringes and needles used by diabetics, and 3/4% of the gross
13 receipts from other taxable sales made in the course of that
14 business. In DuPage, Kane, Lake, McHenry, and Will Counties,
15 the tax rate shall be 1/4% of the gross receipts from all
16 taxable sales made in the course of that business. The tax
17 imposed under this Section and all civil penalties that may
18 be assessed as an incident thereof shall be collected and
19 enforced by the State Department of Revenue. The Department
20 shall have full power to administer and enforce this Section;
21 to collect all taxes and penalties so collected in the manner
22 hereinafter provided; and to determine all rights to credit
23 memoranda arising on account of the erroneous payment of tax
24 or penalty hereunder. In the administration of, and
25 compliance with this Section, the Department and persons who
26 are subject to this Section 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 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
32 (in respect to all provisions therein other than the State
33 rate of tax), 2c, 3 (except as to the disposition of taxes
34 and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
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1 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13
2 of the Retailers' Occupation Tax Act and Section 3-7 of the
3 Uniform Penalty and Interest Act, as fully as if those
4 provisions were set forth herein.
5 Persons subject to any tax imposed under the authority
6 granted in this Section may reimburse themselves for their
7 seller's tax liability hereunder by separately stating the
8 tax as an additional charge, which charge may be stated in
9 combination in a single amount with State taxes that sellers
10 are required to collect under the Use Tax Act, under any
11 bracket schedules the Department may prescribe.
12 Whenever the Department determines that a refund should
13 be made under this Section to a claimant instead of issuing a
14 credit memorandum, the Department shall notify the State
15 Comptroller, who shall cause the warrant to be drawn for the
16 amount specified, and to the person named, in the
17 notification from the Department. The refund shall be paid
18 by the State Treasurer out of the Regional Transportation
19 Authority tax fund established under paragraph (n) of this
20 Section.
21 If a tax is imposed under this subsection (e), a tax
22 shall also be imposed under subsections (f) and (g) of this
23 Section.
24 For the purpose of determining whether a tax authorized
25 under this Section is applicable, a retail sale by a producer
26 of coal or other mineral mined in Illinois, is a sale at
27 retail at the place where the coal or other mineral mined in
28 Illinois is extracted from the earth. This paragraph does not
29 apply to coal or other mineral when it is delivered or
30 shipped by the seller to the purchaser at a point outside
31 Illinois so that the sale is exempt under the Federal
32 Constitution as a sale in interstate or foreign commerce.
33 Nothing in this Section shall be construed to authorize
34 the Regional Transportation Authority to impose a tax upon
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1 the privilege of engaging in any business that under the
2 Constitution of the United States may not be made the subject
3 of taxation by this State.
4 (f) If a tax has been imposed under paragraph (e), a tax
5 shall also be imposed upon all persons engaged, in the
6 metropolitan region in the business of making sales of
7 service, who as an incident to making the sales of service,
8 transfer tangible personal property within the metropolitan
9 region, either in the form of tangible personal property or
10 in the form of real estate as an incident to a sale of
11 service. In Cook County, the tax rate shall be: (1) 1% of
12 the serviceman's cost price of food prepared for immediate
13 consumption and transferred incident to a sale of service
14 subject to the service occupation tax by an entity licensed
15 under the Hospital Licensing Act or the Nursing Home Care Act
16 that is located in the metropolitan region; (2) 1% of the
17 selling price of food for human consumption that is to be
18 consumed off the premises where it is sold (other than
19 alcoholic beverages, soft drinks and food that has been
20 prepared for immediate consumption) and prescription and
21 nonprescription medicines, drugs, medical appliances and
22 insulin, urine testing materials, syringes and needles used
23 by diabetics; and (3) 3/4% of the selling price from other
24 taxable sales of tangible personal property transferred. In
25 DuPage, Kane, Lake, McHenry and Will Counties the rate shall
26 be 1/4% of the selling price of all tangible personal
27 property transferred.
28 The tax imposed under this paragraph and all civil
29 penalties that may be assessed as an incident thereof shall
30 be collected and enforced by the State Department of Revenue.
31 The Department shall have full power to administer and
32 enforce this paragraph; to collect all taxes and penalties
33 due hereunder; to dispose of taxes and penalties collected in
34 the manner hereinafter provided; and to determine all rights
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1 to credit memoranda arising on account of the erroneous
2 payment of tax or penalty hereunder. In the administration
3 of and compliance with this paragraph, the Department and
4 persons who are subject to this paragraph shall have the same
5 rights, remedies, privileges, immunities, powers and duties,
6 and be subject to the same conditions, restrictions,
7 limitations, penalties, exclusions, exemptions and
8 definitions of terms, and employ the same modes of procedure,
9 as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
10 respect to all provisions therein other than the State rate
11 of tax), 4 (except that the reference to the State shall be
12 to the Authority), 5, 7, 8 (except that the jurisdiction to
13 which the tax shall be a debt to the extent indicated in that
14 Section 8 shall be the Authority), 9 (except as to the
15 disposition of taxes and penalties collected, and except that
16 the returned merchandise credit for this tax may not be taken
17 against any State tax), 10, 11, 12 (except the reference
18 therein to Section 2b of the Retailers' Occupation Tax Act),
19 13 (except that any reference to the State shall mean the
20 Authority), the first paragraph of Section 15, 16, 17, 18, 19
21 and 20 of the Service Occupation Tax Act and Section 3-7 of
22 the Uniform Penalty and Interest Act, as fully as if those
23 provisions were set forth herein.
24 Persons subject to any tax imposed under the authority
25 granted in this paragraph may reimburse themselves for their
26 serviceman's tax liability hereunder by separately stating
27 the tax as an additional charge, that charge may be stated in
28 combination in a single amount with State tax that servicemen
29 are authorized to collect under the Service Use Tax Act,
30 under any bracket schedules the Department may prescribe.
31 Whenever the Department determines that a refund should
32 be made under this paragraph to a claimant instead of issuing
33 a credit memorandum, the Department shall notify the State
34 Comptroller, who shall cause the warrant to be drawn for the
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1 amount specified, and to the person named in the notification
2 from the Department. The refund shall be paid by the State
3 Treasurer out of the Regional Transportation Authority tax
4 fund established under paragraph (n) of this Section.
5 Nothing in this paragraph shall be construed to authorize
6 the Authority to impose a tax upon the privilege of engaging
7 in any business that under the Constitution of the United
8 States may not be made the subject of taxation by the State.
9 (g) If a tax has been imposed under paragraph (e), a tax
10 shall also be imposed upon the privilege of using in the
11 metropolitan region, any item of tangible personal property
12 that is purchased outside the metropolitan region at retail
13 from a retailer, and that is titled or registered with an
14 agency of this State's government. In Cook County the tax
15 rate shall be 3/4% of the selling price of the tangible
16 personal property, as "selling price" is defined in the Use
17 Tax Act. In DuPage, Kane, Lake, McHenry and Will counties
18 the tax rate shall be 1/4% of the selling price of the
19 tangible personal property, as "selling price" is defined in
20 the Use Tax Act. The tax shall be collected from persons
21 whose Illinois address for titling or registration purposes
22 is given as being in the metropolitan region. The tax shall
23 be collected by the Department of Revenue for the Regional
24 Transportation Authority. The tax must be paid to the State,
25 or an exemption determination must be obtained from the
26 Department of Revenue, before the title or certificate of
27 registration for the property may be issued. The tax or proof
28 of exemption may be transmitted to the Department by way of
29 the State agency with which, or the State officer with whom,
30 the tangible personal property must be titled or registered
31 if the Department and the State agency or State officer
32 determine that this procedure will expedite the processing of
33 applications for title or registration.
34 The Department shall have full power to administer and
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1 enforce this paragraph; to collect all taxes, penalties and
2 interest due hereunder; to dispose of taxes, penalties and
3 interest collected in the manner hereinafter provided; and to
4 determine all rights to credit memoranda or refunds arising
5 on account of the erroneous payment of tax, penalty or
6 interest hereunder. In the administration of and compliance
7 with this paragraph, the Department and persons who are
8 subject to this paragraph shall have the same rights,
9 remedies, privileges, immunities, powers and duties, and be
10 subject to the same conditions, restrictions, limitations,
11 penalties, exclusions, exemptions and definitions of terms
12 and employ the same modes of procedure, as are prescribed in
13 Sections 2 (except the definition of "retailer maintaining a
14 place of business in this State"), 3 through 3-80 (except
15 provisions pertaining to the State rate of tax, and except
16 provisions concerning collection or refunding of the tax by
17 retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
18 pertaining to claims by retailers and except the last
19 paragraph concerning refunds), 20, 21 and 22 of the Use Tax
20 Act, and are not inconsistent with this paragraph, as fully
21 as if those provisions were set forth herein.
22 Whenever the Department determines that a refund should
23 be made under this paragraph to a claimant instead of issuing
24 a credit memorandum, the Department shall notify the State
25 Comptroller, who shall cause the order to be drawn for the
26 amount specified, and to the person named in the notification
27 from the Department. The refund shall be paid by the State
28 Treasurer out of the Regional Transportation Authority tax
29 fund established under paragraph (n) of this Section.
30 (h) The Authority may impose a replacement vehicle tax
31 of $50 on any passenger car as defined in Section 1-157 of
32 the Illinois Vehicle Code purchased within the metropolitan
33 region by or on behalf of an insurance company to replace a
34 passenger car of an insured person in settlement of a total
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1 loss claim. The tax imposed may not become effective before
2 the first day of the month following the passage of the
3 ordinance imposing the tax and receipt of a certified copy of
4 the ordinance by the Department of Revenue. The Department
5 of Revenue shall collect the tax for the Authority in
6 accordance with Sections 3-2002 and 3-2003 of the Illinois
7 Vehicle Code.
8 The Department shall immediately pay over to the State
9 Treasurer, ex officio, as trustee, all taxes collected
10 hereunder. On or before the 25th day of each calendar month,
11 the Department shall prepare and certify to the Comptroller
12 the disbursement of stated sums of money to the Authority.
13 The amount to be paid to the Authority shall be the amount
14 collected hereunder during the second preceding calendar
15 month by the Department, less any amount determined by the
16 Department to be necessary for the payment of refunds.
17 Within 10 days after receipt by the Comptroller of the
18 disbursement certification to the Authority provided for in
19 this Section to be given to the Comptroller by the
20 Department, the Comptroller shall cause the orders to be
21 drawn for that amount in accordance with the directions
22 contained in the certification.
23 (i) The Board may not impose any other taxes except as
24 it may from time to time be authorized by law to impose.
25 (j) A certificate of registration issued by the State
26 Department of Revenue to a retailer under the Retailers'
27 Occupation Tax Act or under the Service Occupation Tax Act
28 shall permit the registrant to engage in a business that is
29 taxed under the tax imposed under paragraphs (b), (e), (f) or
30 (g) of this Section and no additional registration shall be
31 required under the tax. A certificate issued under the Use
32 Tax Act or the Service Use Tax Act shall be applicable with
33 regard to any tax imposed under paragraph (c) of this
34 Section.
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1 (k) The provisions of any tax imposed under paragraph
2 (c) of this Section shall conform as closely as may be
3 practicable to the provisions of the Use Tax Act, including
4 without limitation conformity as to penalties with respect to
5 the tax imposed and as to the powers of the State Department
6 of Revenue to promulgate and enforce rules and regulations
7 relating to the administration and enforcement of the
8 provisions of the tax imposed. The taxes shall be imposed
9 only on use within the metropolitan region and at rates as
10 provided in the paragraph.
11 (l) The Board in imposing any tax as provided in
12 paragraphs (b) and (c) of this Section, shall, after seeking
13 the advice of the State Department of Revenue, provide means
14 for retailers, users or purchasers of motor fuel for purposes
15 other than those with regard to which the taxes may be
16 imposed as provided in those paragraphs to receive refunds of
17 taxes improperly paid, which provisions may be at variance
18 with the refund provisions as applicable under the Municipal
19 Retailers Occupation Tax Act. The State Department of
20 Revenue may provide for certificates of registration for
21 users or purchasers of motor fuel for purposes other than
22 those with regard to which taxes may be imposed as provided
23 in paragraphs (b) and (c) of this Section to facilitate the
24 reporting and nontaxability of the exempt sales or uses.
25 (m) Any ordinance imposing or discontinuing any tax
26 under this Section shall be adopted and a certified copy
27 thereof filed with the Department on or before June 1,
28 whereupon the Department of Revenue shall proceed to
29 administer and enforce this Section on behalf of the Regional
30 Transportation Authority as of September 1 next following
31 such adoption and filing. Beginning January 1, 1992, an
32 ordinance or resolution imposing or discontinuing the tax
33 hereunder shall be adopted and a certified copy thereof filed
34 with the Department on or before the first day of July,
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1 whereupon the Department shall proceed to administer and
2 enforce this Section as of the first day of October next
3 following such adoption and filing. Beginning January 1,
4 1993, an ordinance or resolution imposing or discontinuing
5 the tax hereunder shall be adopted and a certified copy
6 thereof filed with the Department on or before the first day
7 of October, whereupon the Department shall proceed to
8 administer and enforce this Section as of the first day of
9 January next following such adoption and filing.
10 (n) The State Department of Revenue shall, upon
11 collecting any taxes as provided in this Section, pay the
12 taxes over to the State Treasurer as trustee for the
13 Authority. The taxes shall be held in a trust fund outside
14 the State Treasury. On or before the 25th day of each
15 calendar month, the State Department of Revenue shall prepare
16 and certify to the Comptroller of the State of Illinois the
17 amount to be paid to the Authority, which shall be the then
18 balance in the fund, less any amount determined by the
19 Department to be necessary for the payment of refunds. The
20 State Department of Revenue shall also certify to the
21 Authority the amount of taxes collected in each County other
22 than Cook County in the metropolitan region less the amount
23 necessary for the payment of refunds to taxpayers in the
24 County. With regard to the County of Cook, the certification
25 shall specify the amount of taxes collected within the City
26 of Chicago less the amount necessary for the payment of
27 refunds to taxpayers in the City of Chicago and the amount
28 collected in that portion of Cook County outside of Chicago
29 less the amount necessary for the payment of refunds to
30 taxpayers in that portion of Cook County outside of Chicago.
31 Within 10 days after receipt by the Comptroller of the
32 certification of the amount to be paid to the Authority, the
33 Comptroller shall cause an order to be drawn for the payment
34 for the amount in accordance with the direction in the
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1 certification.
2 In addition to the disbursement required by the preceding
3 paragraph, an allocation shall be made in July 1991 and each
4 year thereafter to the Regional Transportation Authority.
5 The allocation shall be made in an amount equal to the
6 average monthly distribution during the preceding calendar
7 year (excluding the 2 months of lowest receipts) and the
8 allocation shall include the amount of average monthly
9 distribution from the Regional Transportation Authority
10 Occupation and Use Tax Replacement Fund. The distribution
11 made in July 1992 and each year thereafter under this
12 paragraph and the preceding paragraph shall be reduced by the
13 amount allocated and disbursed under this paragraph in the
14 preceding calendar year. The Department of Revenue shall
15 prepare and certify to the Comptroller for disbursement the
16 allocations made in accordance with this paragraph.
17 (o) Failure to adopt a budget ordinance or otherwise to
18 comply with Section 4.01 of this Act or to adopt a Five-year
19 Program or otherwise to comply with paragraph (b) of Section
20 2.01 of this Act shall not affect the validity of any tax
21 imposed by the Authority otherwise in conformity with law.
22 (p) At no time shall a public transportation tax or
23 motor vehicle parking tax authorized under paragraphs (b),
24 (c) and (d) of this Section be in effect at the same time as
25 any retailers' occupation, use or service occupation tax
26 authorized under paragraphs (e), (f) and (g) of this Section
27 is in effect.
28 Any taxes imposed under the authority provided in
29 paragraphs (b), (c) and (d) shall remain in effect only until
30 the time as any tax authorized by paragraphs (e), (f) or (g)
31 of this Section are imposed and becomes effective. Once any
32 tax authorized by paragraphs (e), (f) or (g) is imposed the
33 Board may not reimpose taxes as authorized in paragraphs (b),
34 (c) and (d) of the Section unless any tax authorized by
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1 paragraphs (e), (f) or (g) of this Section becomes
2 ineffective by means other than an ordinance of the Board.
3 (q) Any existing rights, remedies and obligations
4 (including enforcement by the Regional Transportation
5 Authority) arising under any tax imposed under paragraphs
6 (b), (c) or (d) of this Section shall not be affected by the
7 imposition of a tax under paragraphs (e), (f) or (g) of this
8 Section.
9 (Source: P.A. 86-928; 86-1475; 86-1481; 87-205; 87-435;
10 87-876; 87-895.)
11 (70 ILCS 3615/4.04) (from Ch. 111 2/3, par. 704.04)
12 Sec. 4.04. Issuance and Pledge of Bonds and Notes.
13 (a) The Authority shall have the continuing power to
14 borrow money and to issue its negotiable bonds or notes as
15 provided in this Section. Unless otherwise indicated in this
16 Section, the term "notes" also includes bond anticipation
17 notes, which are notes which by their terms provide for their
18 payment from the proceeds of bonds thereafter to be issued.
19 Bonds or notes of the Authority may be issued for any or all
20 of the following purposes: to pay costs to the Authority or a
21 Service Board of constructing or acquiring any public
22 transportation facilities (including funds and rights
23 relating thereto, as provided in Section 2.05 of this Act);
24 to repay advances to the Authority or a Service Board made
25 for such purposes; to pay other expenses of the Authority or
26 a Service Board incident to or incurred in connection with
27 such construction or acquisition; to provide funds for any
28 transportation agency to pay principal of or interest or
29 redemption premium on any bonds or notes, whether as such
30 amounts become due or by earlier redemption, issued prior to
31 the date of this amendatory Act by such transportation agency
32 to construct or acquire public transportation facilities or
33 to provide funds to purchase such bonds or notes; and to
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1 provide funds for any transportation agency to construct or
2 acquire any public transportation facilities, to repay
3 advances made for such purposes, and to pay other expenses
4 incident to or incurred in connection with such construction
5 or acquisition; and to provide funds for payment of
6 obligations, including the funding of reserves, under any
7 self-insurance plan or joint self-insurance pool or entity.
8 In addition to any other borrowing as may be authorized by
9 this Section, the Authority may issue its notes, from time to
10 time, in anticipation of tax receipts of the Authority or of
11 other revenues or receipts of the Authority, in order to
12 provide money for the Authority or the Service Boards to
13 cover any cash flow deficit which the Authority or a Service
14 Board anticipates incurring. Any such notes are referred to
15 in this Section as "Working Cash Notes". No Working Cash
16 Notes shall be issued for a term of longer than 18 months.
17 Proceeds of Working Cash Notes may be used to pay day to day
18 operating expenses of the Authority or the Service Boards,
19 consisting of wages, salaries and fringe benefits,
20 professional and technical services (including legal, audit,
21 engineering and other consulting services), office rental,
22 furniture, fixtures and equipment, insurance premiums, claims
23 for self-insured amounts under insurance policies, public
24 utility obligations for telephone, light, heat and similar
25 items, travel expenses, office supplies, postage, dues,
26 subscriptions, public hearings and information expenses, fuel
27 purchases, and payments of grants and payments under purchase
28 of service agreements for operations of transportation
29 agencies, prior to the receipt by the Authority or a Service
30 Board from time to time of funds for paying such expenses.
31 In addition to any Working Cash Notes that the Board of the
32 Authority may determine to issue, the Suburban Bus Board, the
33 Commuter Rail Board or the Board of the Chicago Transit
34 Authority may demand and direct that the Authority issue its
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1 Working Cash Notes in such amounts and having such maturities
2 as the Service Board may determine. Notwithstanding any
3 other provision of this Act, any amounts necessary to pay
4 principal of and interest on any Working Cash Notes issued at
5 the demand and direction of a Service Board or any Working
6 Cash Notes the proceeds of which were used for the direct
7 benefit of a Service Board or any other Bonds or Notes of the
8 Authority the proceeds of which were used for the direct
9 benefit of a Service Board shall constitute a reduction of
10 the amount of the proceeds of any tax imposed by the
11 Authority under Sections 4.03 and 4.03.1 or any other funds
12 provided by the Authority to a Service Board. The Authority
13 shall, after deducting any costs of issuance, tender the net
14 proceeds of any Working Cash Notes issued at the demand and
15 direction of a Service Board to such Service Board as soon as
16 may be practicable after the proceeds are received. The
17 Authority may also issue notes or bonds to pay, refund or
18 redeem any of its notes and bonds, including to pay
19 redemption premiums or accrued interest on such bonds or
20 notes being renewed, paid or refunded, and other costs in
21 connection therewith. The Authority may also utilize the
22 proceeds of any such bonds or notes to pay the legal,
23 financial, administrative and other expenses of such
24 authorization, issuance, sale or delivery of bonds or notes
25 or to provide or increase a debt service reserve fund with
26 respect to any or all of its bonds or notes. The Authority
27 may also issue and deliver its bonds or notes in exchange for
28 any public transportation facilities, (including funds and
29 rights relating thereto, as provided in Section 2.05 of this
30 Act) or in exchange for outstanding bonds or notes of the
31 Authority, including any accrued interest or redemption
32 premium thereon, without advertising or submitting such notes
33 or bonds for public bidding.
34 (b) The ordinance providing for the issuance of any such
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1 bonds or notes shall fix the date or dates of maturity, the
2 dates on which interest is payable, any sinking fund account
3 or reserve fund account provisions and all other details of
4 such bonds or notes and may provide for such covenants or
5 agreements necessary or desirable with regard to the issue,
6 sale and security of such bonds or notes. The rate or rates
7 of interest on its bonds or notes may be fixed or variable
8 and the Authority shall determine or provide for the
9 determination of the rate or rates of interest of its bonds
10 or notes issued under this Act in an ordinance adopted by the
11 Authority prior to the issuance thereof, none of which rates
12 of interest shall exceed that permitted in "An Act to
13 authorize public corporations to issue bonds, other evidences
14 of indebtedness and tax anticipation warrants subject to
15 interest rate limitations set forth therein", approved May
16 26, 1970, as now or hereafter amended. Interest may be
17 payable annually or semi-annually, or at such other times as
18 provided for by the Board. Bonds and notes issued under this
19 Section may be issued as serial or term obligations, shall be
20 of such denomination or denominations and form, including
21 interest coupons to be attached thereto, be executed in such
22 manner, shall be payable at such place or places and bear
23 such date as the Authority shall fix by the ordinance
24 authorizing such bond or note and shall mature at such time
25 or times, within a period not to exceed forty years from the
26 date of issue, and may be redeemable prior to maturity with
27 or without premium, at the option of the Authority, upon such
28 terms and conditions as the Authority shall fix by the
29 ordinance authorizing the issuance of such bonds or notes. No
30 bond anticipation note or any renewal thereof shall mature at
31 any time or times exceeding 5 years from the date of the
32 first issuance of such note. The Authority may provide for
33 the registration of bonds or notes in the name of the owner
34 as to the principal alone or as to both principal and
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1 interest, upon such terms and conditions as the Authority may
2 determine. The ordinance authorizing bonds or notes may
3 provide for the exchange of such bonds or notes which are
4 fully registered, as to both principal and interest, with
5 bonds or notes which are registerable as to principal only.
6 All bonds or notes issued under this Section by the Authority
7 other than those issued in exchange for property or for bonds
8 or notes of the Authority shall be sold at a price which may
9 be at a premium or discount but such that the interest cost
10 (excluding any redemption premium) to the Authority of the
11 proceeds of an issue of such bonds or notes, computed to
12 stated maturity according to standard tables of bond values,
13 shall not exceed that permitted in "An Act to authorize
14 public corporations to issue bonds, other evidences of
15 indebtedness and tax anticipation warrants subject to
16 interest rate limitations set forth therein", approved May
17 26, 1970, as now or hereafter amended. Such bonds or notes
18 shall be sold at such time or times and, until January 1,
19 1995, in such manner as the Authority shall determine. The
20 Authority shall notify the Bureau of the Budget and the State
21 Comptroller 30 days before any bond sale and shall file with
22 the Bureau of the Budget and the State Comptroller a
23 certified copy of any ordinance authorizing the issuance of
24 bonds at or before the issuance of the bonds. After December
25 31, 1994, any such bonds or notes shall be sold to the
26 highest and best bidder on sealed bids as the Authority shall
27 deem. As such bonds or notes are to be sold the Authority
28 shall advertise for proposals to purchase the bonds or notes
29 which advertisement shall be published at least once in a
30 daily newspaper of general circulation published in the
31 metropolitan region at least 10 days before the time set for
32 the submission of bids. The Authority shall have the right to
33 reject any or all bids. Notwithstanding any other provisions
34 of this Section, Working Cash Notes or bonds or notes to
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1 provide funds for self-insurance or a joint self-insurance
2 pool or entity may be sold either upon competitive bidding or
3 by negotiated sale (without any requirement of publication of
4 intention to negotiate the sale of such Notes), as the Board
5 shall determine by ordinance adopted with the affirmative
6 votes of at least 7 Directors. In case any officer whose
7 signature appears on any bonds, notes or coupons authorized
8 pursuant to this Section shall cease to be such officer
9 before delivery of such bonds or notes, such signature shall
10 nevertheless be valid and sufficient for all purposes, the
11 same as if such officer had remained in office until such
12 delivery. Neither the Directors of the Authority nor any
13 person executing any bonds or notes thereof shall be liable
14 personally on any such bonds or notes or coupons by reason of
15 the issuance thereof.
16 (c) All bonds or notes of the Authority issued pursuant
17 to this Section shall be general obligations of the Authority
18 to which shall be pledged the full faith and credit of the
19 Authority, as provided in this Section. Such bonds or notes
20 shall be secured as provided in the authorizing ordinance,
21 which may, notwithstanding any other provision of this Act,
22 include in addition to any other security, a specific pledge
23 or assignment of and lien on or security interest in any or
24 all tax receipts of the Authority and on any or all other
25 revenues or moneys of the Authority from whatever source
26 which may by law be utilized for debt service purposes and a
27 specific pledge or assignment of and lien on or security
28 interest in any funds or accounts established or provided for
29 by the ordinance of the Authority authorizing the issuance of
30 such bonds or notes. Any such pledge, assignment, lien or
31 security interest for the benefit of holders of bonds or
32 notes of the Authority shall be valid and binding from the
33 time the bonds or notes are issued without any physical
34 delivery or further act, and shall be valid and binding as
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1 against and prior to the claims of all other parties having
2 claims of any kind against the Authority or any other person
3 irrespective of whether such other parties have notice of
4 such pledge, assignment, lien or security interest. The
5 obligations of the Authority incurred pursuant to this
6 Section shall be superior to and have priority over any other
7 obligations of the Authority. The Authority may provide in
8 the ordinance authorizing the issuance of any bonds or notes
9 issued pursuant to this Section for the creation of, deposits
10 in, and regulation and disposition of sinking fund or reserve
11 accounts relating to such bonds or notes. The ordinance
12 authorizing the issuance of any bonds or notes pursuant to
13 this Section may contain provisions as part of the contract
14 with the holders of the bonds or notes, for the creation of a
15 separate fund to provide for the payment of principal and
16 interest on such bonds or notes and for the deposit in such
17 fund from any or all the tax receipts of the Authority and
18 from any or all such other moneys or revenues of the
19 Authority from whatever source which may by law be utilized
20 for debt service purposes, all as provided in such ordinance,
21 of amounts to meet the debt service requirements on such
22 bonds or notes, including principal and interest, and any
23 sinking fund or reserve fund account requirements as may be
24 provided by such ordinance, and all expenses incident to or
25 in connection with such fund and accounts or the payment of
26 such bonds or notes. Such ordinance may also provide
27 limitations on the issuance of additional bonds or notes of
28 the Authority. No such bonds or notes of the Authority shall
29 constitute a debt of the State of Illinois. Nothing in this
30 Act shall be construed to enable the Authority to impose any
31 ad valorem tax on property.
32 (d) The ordinance of the Authority authorizing the
33 issuance of any bonds or notes may provide additional
34 security for such bonds or notes by providing for appointment
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1 of a corporate trustee (which may be any trust company or
2 bank having the powers of a trust company within the state)
3 with respect to such bonds or notes. The ordinance shall
4 prescribe the rights, duties and powers of the trustee to be
5 exercised for the benefit of the Authority and the protection
6 of the holders of such bonds or notes. The ordinance may
7 provide for the trustee to hold in trust, invest and use
8 amounts in funds and accounts created as provided by the
9 ordinance with respect to the bonds or notes. The ordinance
10 may provide for the assignment and direct payment to the
11 trustee of any or all amounts produced from the sources
12 provided in Section 4.03 of this Act and provided in Section
13 6z-17 of "An Act in relation to State finance", approved June
14 10, 1919, as amended. Upon receipt of notice of any such
15 assignment, the Department of Revenue and the Comptroller of
16 the State of Illinois shall thereafter, notwithstanding the
17 provisions of Section 4.03 of this Act and Section 6z-17 of
18 "An Act in relation to State finance", approved June 10,
19 1919, as amended, provide for such assigned amounts to be
20 paid directly to the trustee instead of the Authority, all in
21 accordance with the terms of the ordinance making the
22 assignment. The ordinance shall provide that amounts so paid
23 to the trustee which are not required to be deposited, held
24 or invested in funds and accounts created by the ordinance
25 with respect to bonds or notes or used for paying bonds or
26 notes to be paid by the trustee to the Authority.
27 (e) Any bonds or notes of the Authority issued pursuant
28 to this Section shall constitute a contract between the
29 Authority and the holders from time to time of such bonds or
30 notes. In issuing any bond or note, the Authority may include
31 in the ordinance authorizing such issue a covenant as part of
32 the contract with the holders of the bonds or notes, that as
33 long as such obligations are outstanding, it shall make such
34 deposits, as provided in paragraph (c) of this Section. It
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1 may also so covenant that it shall impose and continue to
2 impose taxes, as provided in Section 4.03 of this Act and in
3 addition thereto as subsequently authorized by law,
4 sufficient to make such deposits and pay the principal and
5 interest and to meet other debt service requirements of such
6 bonds or notes as they become due. A certified copy of the
7 ordinance authorizing the issuance of any such obligations
8 shall be filed at or prior to the issuance of such
9 obligations with the Comptroller of the State of Illinois and
10 the Illinois Department of Revenue.
11 (f) The State of Illinois pledges to and agrees with the
12 holders of the bonds and notes of the Authority issued
13 pursuant to this Section that the State will not limit or
14 alter the rights and powers vested in the Authority by this
15 Act so as to impair the terms of any contract made by the
16 Authority with such holders or in any way impair the rights
17 and remedies of such holders until such bonds and notes,
18 together with interest thereon, with interest on any unpaid
19 installments of interest, and all costs and expenses in
20 connection with any action or proceedings by or on behalf of
21 such holders, are fully met and discharged. In addition, the
22 State pledges to and agrees with the holders of the bonds and
23 notes of the Authority issued pursuant to this Section that
24 the State will not limit or alter the basis on which State
25 funds are to be paid to the Authority as provided in this
26 Act, or the use of such funds, so as to impair the terms of
27 any such contract. The Authority is authorized to include
28 these pledges and agreements of the State in any contract
29 with the holders of bonds or notes issued pursuant to this
30 Section.
31 (g) (1) The Authority shall not at any time issue, sell
32 or deliver any bonds or notes (other than Working Cash Notes)
33 pursuant to this Section which will cause it to have issued
34 and outstanding at any time in excess of $500,000,000 of such
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1 bonds and notes (other than Working Cash Notes). The
2 Authority shall not at any time issue, sell or deliver any
3 Working Cash Notes pursuant to this Section which will cause
4 it to have issued and outstanding at any time in excess of
5 $100,000,000 of Working Cash Notes. Bonds or notes which are
6 being paid or retired by such issuance, sale or delivery of
7 bonds or notes, and bonds or notes for which sufficient funds
8 have been deposited with the paying agency of such bonds or
9 notes to provide for payment of principal and interest
10 thereon or to provide for the redemption thereof, all
11 pursuant to the ordinance authorizing the issuance of such
12 bonds or notes, shall not be considered to be outstanding for
13 the purposes of the first two sentences of this subsection.
14 (2) In addition to the authority provided by paragraph
15 (1), the Authority is authorized to issue, sell and deliver
16 bonds or notes for Strategic Capital Improvement Projects
17 approved pursuant to Section 4.13 as follows:
18 $100,000,000 is authorized to be issued on or after
19 January 1, 1990;
20 an additional $100,000,000 is authorized to be issued on
21 or after January 1, 1991;
22 an additional $100,000,000 is authorized to be issued on
23 or after January 1, 1992;
24 an additional $100,000,000 is authorized to be issued on
25 or after January 1, 1993;
26 an additional $100,000,000 is authorized to be issued on
27 or after January 1, 1994; and
28 the aggregate total authorization of bonds and notes for
29 Strategic Capital Improvement Projects as of January 1, 1994,
30 shall be $500,000,000.
31 (h) The Authority, subject to the terms of any
32 agreements with noteholders or bond holders as may then
33 exist, shall have power, out of any funds available therefor,
34 to purchase notes or bonds of the Authority which shall
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1 thereupon be cancelled.
2 (i) In addition to any other authority granted by law,
3 the State Treasurer may, with the approval of the Governor,
4 invest or reinvest, at a price not to exceed par, any State
5 money in the State Treasury which is not needed for current
6 expenditures due or about to become due in Working Cash
7 Notes.
8 (Source: P.A. 86-16.)
9 (70 ILCS 3615/4.09) (from Ch. 111 2/3, par. 704.09)
10 Sec. 4.09. Public Transportation Fund and the Regional
11 Transportation Authority Occupation and Use Tax Replacement
12 Fund.
13 (a) As soon as possible after the first day of each
14 month, beginning November 1, 1983, the Comptroller shall
15 order transferred and the Treasurer shall transfer from the
16 General Revenue Fund to a special fund in the State Treasury,
17 to be known as the "Public Transportation Fund" $9,375,000
18 for each month remaining in State fiscal year 1984. As soon
19 as possible after the first day of each month, beginning July
20 1, 1984, upon certification of the Department of Revenue, the
21 Comptroller shall order transferred and the Treasurer shall
22 transfer from the General Revenue Fund to the Public
23 Transportation Fund an amount equal to 25% of the net
24 revenue, before the deduction of the serviceman and retailer
25 discounts pursuant to Section 9 of the Service Occupation Tax
26 Act and Section 3 of the Retailers' Occupation Tax Act,
27 realized from any tax imposed by the Authority pursuant to
28 Sections 4.03 and 4.03.1 and 25% of the amounts deposited
29 into the Regional Transportation Authority tax fund created
30 by Section 4.03 of this Act, from the County and Mass Transit
31 District Fund as provided in Section 6z-20 of the State
32 Finance Act and 25% of the amounts deposited into the
33 Regional Transportation Authority Occupation and Use Tax
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1 Replacement Fund from the State and Local Sales Tax Reform
2 Fund as provided in Section 6z-17 of the State Finance Act.
3 Net revenue realized for a month shall be the revenue
4 collected by the State pursuant to Sections 4.03 and 4.03.1
5 during the previous month from within the metropolitan
6 region, less the amount paid out during that same month as
7 refunds to taxpayers for overpayment of liability in the
8 metropolitan region under Sections 4.03 and 4.03.1.
9 (b) (1) All moneys deposited in the Public
10 Transportation Fund and the Regional Transportation
11 Authority Occupation and Use Tax Replacement Fund,
12 whether deposited pursuant to this Section or otherwise,
13 are allocated to the Authority. Pursuant to
14 appropriation, the Comptroller, as soon as possible after
15 each monthly transfer provided in this Section and after
16 each deposit into the Public Transportation Fund, shall
17 order the Treasurer to pay to the Authority out of the
18 Public Transportation Fund the amount so transferred or
19 deposited. Such amounts paid to the Authority may be
20 expended by it for its purposes as provided in this Act.
21 Subject to appropriation to the Department of
22 Revenue, the Comptroller, as soon as possible after each
23 deposit into the Regional Transportation Authority
24 Occupation and Use Tax Replacement Fund provided in this
25 Section and Section 6z-17 of the State Finance Act, shall
26 order the Treasurer to pay to the Authority out of the
27 Regional Transportation Authority Occupation and Use Tax
28 Replacement Fund the amount so deposited. Such amounts
29 paid to the Authority may be expended by it for its
30 purposes as provided in this Act.
31 (2) Provided, however, no moneys deposited under
32 subsection (a) of Section 4.09 shall be paid from the
33 Public Transportation Fund to the Authority for any
34 fiscal year beginning after the effective date of this
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1 amendatory Act of 1983 until the Authority has certified
2 to the Governor, the Comptroller, and the Mayor of the
3 City of Chicago that it has adopted for that fiscal year
4 a budget and financial plan meeting the requirements in
5 Section 4.01(b).
6 (c) In recognition of the efforts of the Authority to
7 enhance the mass transportation facilities under its control,
8 the State shall provide financial assistance ("Additional
9 State Assistance") in excess of the amounts transferred to
10 the Authority from the General Revenue Fund under subsection
11 (a) of this Section. Additional State Assistance provided in
12 any State fiscal year shall not exceed the actual debt
13 service payable by the Authority during that State fiscal
14 year on bonds or notes issued to finance Strategic Capital
15 Improvement Projects under Section 4.04 of this Act.
16 Additional State Assistance shall in no event exceed the
17 following specified amounts with respect to the following
18 State fiscal years:
19 1990 $5,000,000;
20 1991 $5,000,000;
21 1992 $10,000,000;
22 1993 $10,000,000;
23 1994 $20,000,000;
24 1995 $30,000,000;
25 1996 $40,000,000;
26 1997 $50,000,000;
27 1998 $55,000,000; and
28 each year thereafter $55,000,000.
29 (d) Beginning with State fiscal year 1990 and continuing
30 for each State fiscal year thereafter, the Authority shall
31 annually certify to the State Comptroller and State Treasurer
32 (1) the amount necessary and required, during the State
33 fiscal year with respect to which the certification is made,
34 to pay its obligations for debt service on all outstanding
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1 bonds or notes for Strategic Capital Improvement Projects
2 issued by the Authority under Section 4.04 of this Act and
3 (2) an estimate of the amount necessary and required to pay
4 its obligations for debt service for any bonds or notes for
5 Strategic Capital Improvement Projects which the Authority
6 anticipates it will issue during that State fiscal year. The
7 certification shall include a specific schedule of debt
8 service payments, including the date and amount of each
9 payment for all outstanding bonds or notes and an estimated
10 schedule of anticipated debt service for all bonds and notes
11 it intends to issue, if any, during that State fiscal year,
12 including the estimated date and estimated amount of each
13 payment. Immediately, upon the issuance of bonds for which
14 an estimated schedule of debt service payments was prepared,
15 the Authority shall file an amended certification to specify
16 the actual schedule of debt service payments, including the
17 date and amount of each payment, for the remainder of the
18 State fiscal year. On the first day of each month of the
19 State fiscal year in which there are bonds outstanding with
20 respect to which the certification is made, the State
21 Comptroller shall order transferred and the State Treasurer
22 shall transfer from the General Revenue Fund to the Public
23 Transportation Fund the Additional State Assistance in an
24 amount equal to the aggregate of (1) one-twelfth of the
25 amount required to pay debt service on bonds and notes issued
26 before the beginning of the State fiscal year and (2) the
27 amount required to pay debt service on bonds and notes issued
28 during the fiscal year, if any, divided by the number of
29 months remaining in the fiscal year after the date of
30 issuance, or some smaller portion as may be necessary, listed
31 in subsection (c) for the relevant State fiscal year, plus
32 any cumulative deficiencies in transfers for prior months,
33 until an amount equal to the certified debt service for that
34 State fiscal year on outstanding bonds or notes for Strategic
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1 Capital Improvement Projects issued by the Authority under
2 Section 4.04 of this Act has been transferred. In no event
3 shall total transfers in any State fiscal year exceed the
4 lesser of the annual amounts specified in subsection (c) or
5 the total certified debt service on outstanding bonds or
6 notes for Strategic Capital Improvement Projects issued by
7 the Authority under Section 4.04 of this Act.
8 (e) Additional State Assistance may not be pledged,
9 either directly or indirectly as general revenues of the
10 Authority, as security for any bonds issued by the Authority.
11 The Authority may not assign its right to receive Additional
12 State Assistance or direct payment of Additional State
13 Assistance to a trustee or any other entity for the payment
14 of debt service on its bonds.
15 (f) The certification required under subsection (d) with
16 respect to outstanding bonds and notes of the Authority shall
17 be filed as early as practicable before the beginning of the
18 State fiscal year to which it relates. The certification
19 shall be revised as may be necessary to accurately state the
20 debt service requirements of the Authority.
21 (g) Within 6 months of the end of the 3 month period
22 ending December 31, 1983, and each fiscal year thereafter,
23 the Authority shall determine whether the aggregate of all
24 system generated revenues for public transportation in the
25 metropolitan region which is provided by, or under grant or
26 purchase of service contracts with, the Service Boards equals
27 50% of the aggregate of all costs of providing such public
28 transportation. "System generated revenues" include all the
29 proceeds of fares and charges for services provided,
30 contributions received in connection with public
31 transportation from units of local government other than the
32 Authority and from the State pursuant to subsection (9) of
33 Section 49.19 of the Civil Administrative Code of Illinois,
34 and all other revenues properly included consistent with
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1 generally accepted accounting principles but may not include
2 the proceeds from any borrowing. "Costs" include all items
3 properly included as operating costs consistent with
4 generally accepted accounting principles, including
5 administrative costs, but do not include: depreciation;
6 payment of principal and interest on bonds, notes or other
7 evidences of obligations for borrowed money of the Authority;
8 payments with respect to public transportation facilities
9 made pursuant to subsection (b) of Section 2-20; any payments
10 with respect to rate protection contracts, credit
11 enhancements or liquidity agreements made under Section 4.14;
12 any other cost as to which it is reasonably expected that a
13 cash expenditure will not be made; costs up to $5,000,000
14 annually for passenger security including grants, contracts,
15 personnel, equipment and administrative expenses, except in
16 the case of the Chicago Transit Authority, in which case the
17 term does not include costs spent annually by that entity for
18 protection against crime as required by Section 27a of the
19 Metropolitan Transit Authority Act; or costs as exempted by
20 the Board for projects pursuant to Section 2.09 of this Act.
21 If said system generated revenues are less than 50% of said
22 costs, the Board shall remit an amount equal to the amount of
23 the deficit to the State. The Treasurer shall deposit any
24 such payment in the General Revenue Fund.
25 (h) If the Authority makes any payment to the State
26 under paragraph (g), the Authority shall reduce the amount
27 provided to a Service Board from funds transferred under
28 paragraph (a) in proportion to the amount by which that
29 Service Board failed to meet its required system generated
30 revenues recovery ratio. A Service Board which is affected by
31 a reduction in funds under this paragraph shall submit to the
32 Authority concurrently with its next due quarterly report a
33 revised budget incorporating the reduction in funds. The
34 revised budget must meet the criteria specified in clauses
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1 (i) through (vi) of Section 4.11(b)(2). The Board shall
2 review and act on the revised budget as provided in Section
3 4.11(b)(3).
4 (Source: P.A. 86-16; 86-463; 86-928; 86-1028; 86-1481;
5 87-764.)
6 Section 165. The Water Commission Act of 1985 is amended
7 by re-enacting Section 4 as follows:
8 (70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
9 Sec. 4. (a) The board of commissioners of any county
10 water commission may, by ordinance, impose throughout the
11 territory of the commission any or all of the taxes provided
12 in this Section for its corporate purposes. However, no
13 county water commission may impose any such tax unless the
14 commission certifies the proposition of imposing the tax to
15 the proper election officials, who shall submit the
16 proposition to the voters residing in the territory at an
17 election in accordance with the general election law, and the
18 proposition has been approved by a majority of those voting
19 on the proposition.
20 The proposition shall be in the form provided in Section
21 5 or shall be substantially in the following form:
22 -------------------------------------------------------------
23 Shall the (insert corporate
24 name of county water commission) YES
25 impose (state type of tax or ------------------------
26 taxes to be imposed) at the NO
27 rate of 1/4%?
28 -------------------------------------------------------------
29 Taxes imposed under this Section and civil penalties
30 imposed incident thereto shall be collected and enforced by
31 the State Department of Revenue. The Department shall have
32 the power to administer and enforce the taxes and to
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1 determine all rights for refunds for erroneous payments of
2 the taxes.
3 (b) The board of commissioners may impose a County Water
4 Commission Retailers' Occupation Tax upon all persons engaged
5 in the business of selling tangible personal property at
6 retail in the territory of the commission at a rate of 1/4%
7 of the gross receipts from the sales made in the course of
8 such business within the territory. The tax imposed under
9 this paragraph and all civil penalties that may be assessed
10 as an incident thereof shall be collected and enforced by the
11 State Department of Revenue. The Department shall have full
12 power to administer and enforce this paragraph; to collect
13 all taxes and penalties due hereunder; to dispose of taxes
14 and penalties so collected in the manner hereinafter
15 provided; and to determine all rights to credit memoranda
16 arising on account of the erroneous payment of tax or penalty
17 hereunder. In the administration of, and compliance with,
18 this paragraph, the Department and persons who are subject to
19 this paragraph shall have the same rights, remedies,
20 privileges, immunities, powers and duties, and be subject to
21 the same conditions, restrictions, limitations, penalties,
22 exclusions, exemptions and definitions of terms, and employ
23 the same modes of procedure, as are prescribed in Sections 1,
24 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect
25 to all provisions therein other than the State rate of tax
26 except that food for human consumption that is to be consumed
27 off the premises where it is sold (other than alcoholic
28 beverages, soft drinks, and food that has been prepared for
29 immediate consumption) and prescription and nonprescription
30 medicine, drugs, medical appliances and insulin, urine
31 testing materials, syringes, and needles used by diabetics,
32 for human use, shall not be subject to tax hereunder), 2c, 3
33 (except as to the disposition of taxes and penalties
34 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
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1 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
2 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
3 Penalty and Interest Act, as fully as if those provisions
4 were set forth herein.
5 Persons subject to any tax imposed under the authority
6 granted in this paragraph may reimburse themselves for their
7 seller's tax liability hereunder by separately stating the
8 tax as an additional charge, which charge may be stated in
9 combination, in a single amount, with State taxes that
10 sellers are required to collect under the Use Tax Act and
11 under subsection (e) of Section 4.03 of the Regional
12 Transportation Authority Act, in accordance with such bracket
13 schedules as the Department may prescribe.
14 Whenever the Department determines that a refund should
15 be made under this paragraph to a claimant instead of issuing
16 a credit memorandum, the Department shall notify the State
17 Comptroller, who shall cause the warrant to be drawn for the
18 amount specified, and to the person named, in the
19 notification from the Department. The refund shall be paid
20 by the State Treasurer out of a county water commission tax
21 fund established under paragraph (g) of this Section.
22 For the purpose of determining whether a tax authorized
23 under this paragraph is applicable, a retail sale by a
24 producer of coal or other mineral mined in Illinois is a sale
25 at retail at the place where the coal or other mineral mined
26 in Illinois is extracted from the earth. This paragraph does
27 not apply to coal or other mineral when it is delivered or
28 shipped by the seller to the purchaser at a point outside
29 Illinois so that the sale is exempt under the Federal
30 Constitution as a sale in interstate or foreign commerce.
31 If a tax is imposed under this subsection (b) a tax shall
32 also be imposed under subsections (c) and (d) of this
33 Section.
34 Nothing in this paragraph shall be construed to authorize
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1 a county water commission to impose a tax upon the privilege
2 of engaging in any business which under the Constitution of
3 the United States may not be made the subject of taxation by
4 this State.
5 (c) If a tax has been imposed under subsection (b), a
6 tax shall also be imposed upon all persons engaged, in the
7 territory of the commission, in the business of making sales
8 of service, who, as an incident to making the sales of
9 service, transfer tangible personal property within the
10 territory. The tax rate shall be 1/4% of the selling price of
11 tangible personal property so transferred within the
12 territory. The tax imposed under this paragraph and all
13 civil penalties that may be assessed as an incident thereof
14 shall be collected and enforced by the State Department of
15 Revenue. The Department shall have full power to administer
16 and enforce this paragraph; to collect all taxes and
17 penalties due hereunder; to dispose of taxes and penalties so
18 collected in the manner hereinafter provided; and to
19 determine all rights to credit memoranda arising on account
20 of the erroneous payment of tax or penalty hereunder. In the
21 administration of, and compliance with, this paragraph, the
22 Department and persons who are subject to this paragraph
23 shall have the same rights, remedies, privileges, immunities,
24 powers and duties, and be subject to the same conditions,
25 restrictions, limitations, penalties, exclusions, exemptions
26 and definitions of terms, and employ the same modes of
27 procedure, as are prescribed in Sections 1a-1, 2 (except that
28 the reference to State in the definition of supplier
29 maintaining a place of business in this State shall mean the
30 territory of the commission), 2a, 3 through 3-50 (in respect
31 to all provisions therein other than the State rate of tax
32 except that food for human consumption that is to be consumed
33 off the premises where it is sold (other than alcoholic
34 beverages, soft drinks, and food that has been prepared for
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1 immediate consumption) and prescription and nonprescription
2 medicines, drugs, medical appliances and insulin, urine
3 testing materials, syringes, and needles used by diabetics,
4 for human use, shall not be subject to tax hereunder), 4
5 (except that the reference to the State shall be to the
6 territory of the commission), 5, 7, 8 (except that the
7 jurisdiction to which the tax shall be a debt to the extent
8 indicated in that Section 8 shall be the commission), 9
9 (except as to the disposition of taxes and penalties
10 collected and except that the returned merchandise credit for
11 this tax may not be taken against any State tax), 10, 11, 12
12 (except the reference therein to Section 2b of the Retailers'
13 Occupation Tax Act), 13 (except that any reference to the
14 State shall mean the territory of the commission), the first
15 paragraph of Section 15, 15.5, 16, 17, 18, 19 and 20 of the
16 Service Occupation Tax Act as fully as if those provisions
17 were set forth herein.
18 Persons subject to any tax imposed under the authority
19 granted in this paragraph may reimburse themselves for their
20 serviceman's tax liability hereunder by separately stating
21 the tax as an additional charge, which charge may be stated
22 in combination, in a single amount, with State tax that
23 servicemen are authorized to collect under the Service Use
24 Tax Act, and any tax for which servicemen may be liable under
25 subsection (f) of Sec. 4.03 of the Regional Transportation
26 Authority Act, in accordance with such bracket schedules as
27 the Department may prescribe.
28 Whenever the Department determines that a refund should
29 be made under this paragraph to a claimant instead of issuing
30 a credit memorandum, the Department shall notify the State
31 Comptroller, who shall cause the warrant to be drawn for the
32 amount specified, and to the person named, in the
33 notification from the Department. The refund shall be paid
34 by the State Treasurer out of a county water commission tax
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1 fund established under paragraph (g) of this Section.
2 Nothing in this paragraph shall be construed to authorize
3 a county water commission to impose a tax upon the privilege
4 of engaging in any business which under the Constitution of
5 the United States may not be made the subject of taxation by
6 the State.
7 (d) If a tax has been imposed under subsection (b), a
8 tax shall also imposed upon the privilege of using, in the
9 territory of the commission, any item of tangible personal
10 property that is purchased outside the territory at retail
11 from a retailer, and that is titled or registered with an
12 agency of this State's government, at a rate of 1/4% of the
13 selling price of the tangible personal property within the
14 territory, as "selling price" is defined in the Use Tax Act.
15 The tax shall be collected from persons whose Illinois
16 address for titling or registration purposes is given as
17 being in the territory. The tax shall be collected by the
18 Department of Revenue for a county water commission. The tax
19 must be paid to the State, or an exemption determination must
20 be obtained from the Department of Revenue, before the title
21 or certificate of registration for the property may be
22 issued. The tax or proof of exemption may be transmitted to
23 the Department by way of the State agency with which, or the
24 State officer with whom, the tangible personal property must
25 be titled or registered if the Department and the State
26 agency or State officer determine that this procedure will
27 expedite the processing of applications for title or
28 registration.
29 The Department shall have full power to administer and
30 enforce this paragraph; to collect all taxes, penalties and
31 interest due hereunder; to dispose of taxes, penalties and
32 interest so collected in the manner hereinafter provided; and
33 to determine all rights to credit memoranda or refunds
34 arising on account of the erroneous payment of tax, penalty
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1 or interest hereunder. In the administration of, and
2 compliance with this paragraph, the Department and persons
3 who are subject to this paragraph shall have the same rights,
4 remedies, privileges, immunities, powers and duties, and be
5 subject to the same conditions, restrictions, limitations,
6 penalties, exclusions, exemptions and definitions of terms
7 and employ the same modes of procedure, as are prescribed in
8 Sections 2 (except the definition of "retailer maintaining a
9 place of business in this State"), 3 through 3-80 (except
10 provisions pertaining to the State rate of tax, and except
11 provisions concerning collection or refunding of the tax by
12 retailers, and except that food for human consumption that is
13 to be consumed off the premises where it is sold (other than
14 alcoholic beverages, soft drinks, and food that has been
15 prepared for immediate consumption) and prescription and
16 nonprescription medicines, drugs, medical appliances and
17 insulin, urine testing materials, syringes, and needles used
18 by diabetics, for human use, shall not be subject to tax
19 hereunder), 4, 11, 12, 12a, 14, 15, 19 (except the portions
20 pertaining to claims by retailers and except the last
21 paragraph concerning refunds), 20, 21 and 22 of the Use Tax
22 Act and Section 3-7 of the Uniform Penalty and Interest Act
23 that are not inconsistent with this paragraph, as fully as if
24 those provisions were set forth herein.
25 Whenever the Department determines that a refund should
26 be made under this paragraph to a claimant instead of issuing
27 a credit memorandum, the Department shall notify the State
28 Comptroller, who shall cause the order to be drawn for the
29 amount specified, and to the person named, in the
30 notification from the Department. The refund shall be paid
31 by the State Treasurer out of a county water commission tax
32 fund established under paragraph (g) of this Section.
33 (e) A certificate of registration issued by the State
34 Department of Revenue to a retailer under the Retailers'
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1 Occupation Tax Act or under the Service Occupation Tax Act
2 shall permit the registrant to engage in a business that is
3 taxed under the tax imposed under paragraphs (b), (c) or (d)
4 of this Section and no additional registration shall be
5 required under the tax. A certificate issued under the Use
6 Tax Act or the Service Use Tax Act shall be applicable with
7 regard to any tax imposed under paragraph (c) of this
8 Section.
9 (f) 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 county
14 water commission as of September 1 next following the
15 adoption and filing. Beginning January 1, 1992, an ordinance
16 or resolution imposing or discontinuing the tax hereunder
17 shall be adopted and a certified copy thereof filed with the
18 Department on or before the first day of July, whereupon the
19 Department shall proceed to administer and enforce this
20 Section as of the first day of October next following such
21 adoption and filing. Beginning January 1, 1993, an ordinance
22 or resolution imposing or discontinuing the tax hereunder
23 shall be adopted and a certified copy thereof filed with the
24 Department on or before the first day of October, whereupon
25 the Department shall proceed to administer and enforce this
26 Section as of the first day of January next following such
27 adoption and filing.
28 (g) 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 commission. 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
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1 amount to be paid to the commission, 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. Within
4 10 days after receipt by the Comptroller of the certification
5 of the amount to be paid to the commission, the Comptroller
6 shall cause an order to be drawn for the payment for the
7 amount in accordance with the direction in the certification.
8 (Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
9 Section 900. Sections 1 and 2 of Article V of Public Act
10 85-1135 are re-enacted as follows:
11 (P.A. 85-1135, Art. V, Sec. 1)
12 Sec. 1. This amendatory Act of 1988 shall not affect any
13 right, remedy or liability, whether civil or criminal, which
14 existed prior to the effective date hereof.
15 (P.A. 85-1135, Art. V, Sec. 2)
16 Sec. 2. A home rule municipality may enact ordinances
17 imposing taxes pursuant to Sections 8-11-1, 8-11-5 and 8-11-6
18 of the Illinois Municipal Code after January 1, 1990, if such
19 ordinances do not take effect prior to September 1, 1990.
20 Section 999. Effective date. This Act takes effect upon
21 becoming law.
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1 INDEX
2 Statutes amended in order of appearance
3 New Act
4 P.A. 85-1135, Art. I, Sec. 1
5 30 ILCS 105/5.240 from Ch. 127, par. 141.240
6 30 ILCS 105/5.241 from Ch. 127, par. 141.241
7 30 ILCS 105/6z-9 from Ch. 127, par. 142z-9
8 30 ILCS 105/6z-17 from Ch. 127, par. 142z-17
9 30 ILCS 105/6z-18 from Ch. 127, par. 142z-18
10 30 ILCS 115/0.1 from Ch. 85, par. 610
11 30 ILCS 115/2 from Ch. 85, par. 612
12 35 ILCS 105/3 from Ch. 120, par. 439.3
13 35 ILCS 105/3-5 from Ch. 120, par. 439.3-5
14 35 ILCS 105/3-10 from Ch. 120, par. 439.3-10
15 35 ILCS 105/3-15 from Ch. 120, par. 439.3-15
16 35 ILCS 105/3-20 from Ch. 120, par. 439.3-20
17 35 ILCS 105/3-25 from Ch. 120, par. 439.3-25
18 35 ILCS 105/3-30 from Ch. 120, par. 439.3-30
19 35 ILCS 105/3-35 from Ch. 120, par. 439.3-35
20 35 ILCS 105/3-40 from Ch. 120, par. 439.3-40
21 35 ILCS 105/3-45 from Ch. 120, par. 439.3-45
22 35 ILCS 105/3-50 from Ch. 120, par. 439.3-50
23 35 ILCS 105/3-55 from Ch. 120, par. 439.3-55
24 35 ILCS 105/3-60 from Ch. 120, par. 439.3-60
25 35 ILCS 105/3-65 from Ch. 120, par. 439.3-65
26 35 ILCS 105/3-70 from Ch. 120, par. 439.3-70
27 35 ILCS 105/3-75 from Ch. 120, par. 439.3-75
28 35 ILCS 105/3-80 from Ch. 120, par. 439.3-80
29 35 ILCS 105/9 from Ch. 120, par. 439.9
30 35 ILCS 110/2 from Ch. 120, par. 439.32
31 35 ILCS 110/3 from Ch. 120, par. 439.33
32 35 ILCS 110/3-5 from Ch. 120, par. 439.33-5
33 35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
34 35 ILCS 110/3-15 from Ch. 120, par. 439.33-15
SB144 Engrossed -276- LRB9101598PTpk
1 35 ILCS 110/3-20 from Ch. 120, par. 439.33-20
2 35 ILCS 110/3-25 from Ch. 120, par. 439.33-25
3 35 ILCS 110/3-30 from Ch. 120, par. 439.33-30
4 35 ILCS 110/3-35 from Ch. 120, par. 439.33-35
5 35 ILCS 110/3-40 from Ch. 120, par. 439.33-40
6 35 ILCS 110/3-45 from Ch. 120, par. 439.33-45
7 35 ILCS 110/3-50 from Ch. 120, par. 439.33-50
8 35 ILCS 110/3-55 from Ch. 120, par. 439.33-55
9 35 ILCS 110/3-60 from Ch. 120, par. 439.33-60
10 35 ILCS 110/3-65 from Ch. 120, par. 439.33-65
11 35 ILCS 110/3d from Ch. 120, par. 439.33d
12 35 ILCS 110/7a from Ch. 120, par. 439.37a
13 35 ILCS 110/9 from Ch. 120, par. 439.39
14 35 ILCS 110/10 from Ch. 120, par. 439.40
15 35 ILCS 110/15 from Ch. 120, par. 439.45
16 35 ILCS 115/2 from Ch. 120, par. 439.102
17 35 ILCS 115/3 from Ch. 120, par. 439.103
18 35 ILCS 115/3-5 from Ch. 120, par. 439.103-5
19 35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
20 35 ILCS 115/3-15 from Ch. 120, par. 439.103-15
21 35 ILCS 115/3-20 from Ch. 120, par. 439.103-20
22 35 ILCS 115/3-25 from Ch. 120, par. 439.103-25
23 35 ILCS 115/3-30 from Ch. 120, par. 439.103-30
24 35 ILCS 115/3-35 from Ch. 120, par. 439.103-35
25 35 ILCS 115/3-40 from Ch. 120, par. 439.103-40
26 35 ILCS 115/3-45 from Ch. 120, par. 439.103-45
27 35 ILCS 115/3-50 from Ch. 120, par. 439.103-50
28 35 ILCS 115/9 from Ch. 120, par. 439.109
29 35 ILCS 115/13 from Ch. 120, par. 439.113
30 35 ILCS 115/15 from Ch. 120, par. 439.115
31 35 ILCS 115/439.110 rep.
32 35 ILCS 115/439.114 rep.
33 35 ILCS 120/2 from Ch. 120, par. 441
34 35 ILCS 120/2-5 from Ch. 120, par. 441-5
SB144 Engrossed -277- LRB9101598PTpk
1 35 ILCS 120/2-10 from Ch. 120, par. 441-10
2 35 ILCS 120/2-15 from Ch. 120, par. 441-15
3 35 ILCS 120/2-20 from Ch. 120, par. 441-20
4 35 ILCS 120/2-25 from Ch. 120, par. 441-25
5 35 ILCS 120/2-30 from Ch. 120, par. 441-30
6 35 ILCS 120/2-35 from Ch. 120, par. 441-35
7 35 ILCS 120/2-40 from Ch. 120, par. 441-40
8 35 ILCS 120/2-45 from Ch. 120, par. 441-45
9 35 ILCS 120/2-50 from Ch. 120, par. 441-50
10 35 ILCS 120/2-55 from Ch. 120, par. 441-55
11 35 ILCS 120/2-60 from Ch. 120, par. 441-60
12 35 ILCS 120/2-65 from Ch. 120, par. 441-65
13 35 ILCS 120/3 from Ch. 120, par. 442
14 35 ILCS 120/5k from Ch. 120, par. 444k
15 55 ILCS 5/5-1006 from Ch. 34, par. 5-1006
16 55 ILCS 5/5-1007 from Ch. 34, par. 5-1007
17 55 ILCS 5/5-1008 from Ch. 34, par. 5-1008
18 55 ILCS 5/5-1009 from Ch. 34, par. 5-1009
19 55 ILCS 5/5-1024 from Ch. 34, par. 5-1024
20 Ch. 34, rep. par. 406a
21 Ch. 34, rep. par. 409.1
22 Ch. 34, rep. par. 409.1a
23 Ch. 34, rep. par. 409.2
24 Ch. 34, rep. par. 409.2a
25 Ch. 34, rep. par. 409.10
26 Ch. 34, rep. par. 409.10a
27 Ch. 34, rep. par. 409.10.1
28 65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1
29 65 ILCS 5/8-11-1.1 from Ch. 24, par. 8-11-1.1
30 65 ILCS 5/8-11-1.2 from Ch. 24, par. 8-11-1.2
31 65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3
32 65 ILCS 5/8-11-1.4 from Ch. 24, par. 8-11-1.4
33 65 ILCS 5/8-11-5 from Ch. 24, par. 8-11-5
34 65 ILCS 5/8-11-6 from Ch. 24, par. 8-11-6
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1 65 ILCS 5/8-11-6a from Ch. 24, par. 8-11-6a
2 65 ILCS 5/8-11-16 from Ch. 24, par. 8-11-16
3 65 ILCS 5/11-74.4-8a from Ch. 24, par. 11-74.4-8a
4 70 ILCS 3610/5.01 from Ch. 111 2/3, par. 355.01
5 70 ILCS 3615/4.01 from Ch. 111 2/3, par. 704.01
6 70 ILCS 3615/4.03 from Ch. 111 2/3, par. 704.03
7 70 ILCS 3615/4.04 from Ch. 111 2/3, par. 704.04
8 70 ILCS 3615/4.09 from Ch. 111 2/3, par. 704.09
9 70 ILCS 3720/4 from Ch. 111 2/3, par. 254
10 P.A. 85-1135, Art. V, Sec. 1
11 P.A. 85-1135, Art. V, Sec. 2