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91_SB0878
LRB9105091PTpk
1 AN ACT concerning taxation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The State Finance Act is amended by adding
5 Section 5.490 as follows:
6 (30 ILCS 105/5.490 new)
7 Sec. 5.490. The Use and Occupation Tax Refund Fund.
8 Section 10. The Use Tax Act is amended by changing
9 Section 12 as follows:
10 (35 ILCS 105/12) (from Ch. 120, par. 439.12)
11 Sec. 12. Applicability of Retailers' Occupation Tax Act
12 and Uniform Penalty and Interest Act. All of the provisions
13 of Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2a, 2b,
14 2c, 3, 3a, 4 (except that the time limitation provisions
15 shall run from the date when the tax is due rather than from
16 the date when gross receipts are received), 5 (except that
17 the time limitation provisions on the issuance of notices of
18 tax liability shall run from the date when the tax is due
19 rather than from the date when gross receipts are received
20 and except that in the case of a failure to file a return
21 required by this Act, no notice of tax liability shall be
22 issued on and after each July 1 and January 1 covering tax
23 due with that return during any month or period more than 6
24 years before that July 1 or January 1, respectively), 5a, 5b,
25 5c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 7, 8, 9, 10, 11 and 12 of
26 the Retailers' Occupation Tax Act and Section 3-7 of the
27 Uniform Penalty and Interest Act, which are not inconsistent
28 with this Act, shall apply, as far as practicable, to the
29 subject matter of this Act to the same extent as if such
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1 provisions were included herein.
2 (Source: P.A. 90-42, eff. 1-1-98; 90-792, eff. 1-1-99.)
3 Section 15. The Service Use Tax Act is amended by
4 changing Section 12 as follows:
5 (35 ILCS 110/12) (from Ch. 120, par. 439.42)
6 Sec. 12. Applicability of Retailers' Occupation Tax Act
7 and Uniform Penalty and Interest Act. All of the provisions
8 of Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2a, 2b,
9 2c, 3 (except as to the disposition by the Department of the
10 money collected under this Act), 3a, 4 (except that the time
11 limitation provisions shall run from the date when gross
12 receipts are received), 5 (except that the time limitation
13 provisions on the issuance of notices of tax liability shall
14 run from the date when the tax is due rather than from the
15 date when gross receipts are received and except that in the
16 case of a failure to file a return required by this Act, no
17 notice of tax liability shall be issued on and after July 1
18 and January 1 covering tax due with that return during any
19 month or period more than 6 years before that July 1 or
20 January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k,
21 5l, 7, 8, 9, 10, 11 and 12 of the Retailers' Occupation Tax
22 Act which are not inconsistent with this Act, and Section 3-7
23 of the Uniform Penalty and Interest Act, shall apply, as far
24 as practicable, to the subject matter of this Act to the same
25 extent as if such provisions were included herein.
26 (Source: P.A. 90-42, eff. 1-1-98; 90-792, eff. 1-1-99.)
27 Section 20. The Service Occupation Tax Act is amended by
28 changing Section 12 as follows:
29 (35 ILCS 115/12) (from Ch. 120, par. 439.112)
30 Sec. 12. All of the provisions of Sections 1d, 1e, 1f,
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1 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2a, 2b, 2c, 3 (except as to the
2 disposition by the Department of the tax collected under this
3 Act), 3a, 4 (except that the time limitation provisions shall
4 run from the date when the tax is due rather than from the
5 date when gross receipts are received), 5 (except that the
6 time limitation provisions on the issuance of notices of tax
7 liability shall run from the date when the tax is due rather
8 than from the date when gross receipts are received), 5a, 5b,
9 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 7, 8, 9, 10, 11 and 12 of the
10 "Retailers' Occupation Tax Act" which are not inconsistent
11 with this Act, and Section 3-7 of the Uniform Penalty and
12 Interest Act shall apply, as far as practicable, to the
13 subject matter of this Act to the same extent as if such
14 provisions were included herein.
15 (Source: P.A. 90-42, eff. 1-1-98; 90-792, eff. 1-1-99.)
16 Section 25. The Retailers' Occupation Tax Act is amended
17 by changing Sections 3, 6b, and 6c and adding Section 3a as
18 follows:
19 (35 ILCS 120/3) (from Ch. 120, par. 442)
20 Sec. 3. Except as provided in this Section, on or before
21 the twentieth day of each calendar month, every person
22 engaged in the business of selling tangible personal property
23 at retail in this State during the preceding calendar month
24 shall file a return with the Department, stating:
25 1. The name of the seller;
26 2. His residence address and the address of his
27 principal place of business and the address of the
28 principal place of business (if that is a different
29 address) from which he engages in the business of selling
30 tangible personal property at retail in this State;
31 3. Total amount of receipts received by him during
32 the preceding calendar month or quarter, as the case may
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1 be, from sales of tangible personal property, and from
2 services furnished, by him during such preceding calendar
3 month or quarter;
4 4. Total amount received by him during the
5 preceding calendar month or quarter on charge and time
6 sales of tangible personal property, and from services
7 furnished, by him prior to the month or quarter for which
8 the return is filed;
9 5. Deductions allowed by law;
10 6. Gross receipts which were received by him during
11 the preceding calendar month or quarter and upon the
12 basis of which the tax is imposed;
13 7. The amount of credit provided in Section 2d of
14 this Act;
15 8. The amount of tax due;
16 9. The signature of the taxpayer; and
17 10. Such other reasonable information as the
18 Department may require.
19 If a taxpayer fails to sign a return within 30 days after
20 the proper notice and demand for signature by the Department,
21 the return shall be considered valid and any amount shown to
22 be due on the return shall be deemed assessed.
23 Each return shall be accompanied by the statement of
24 prepaid tax issued pursuant to Section 2e for which credit is
25 claimed.
26 A retailer may accept a Manufacturer's Purchase Credit
27 certification from a purchaser in satisfaction of Use Tax as
28 provided in Section 3-85 of the Use Tax Act if the purchaser
29 provides the appropriate documentation as required by Section
30 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
31 certification, accepted by a retailer as provided in Section
32 3-85 of the Use Tax Act, may be used by that retailer to
33 satisfy Retailers' Occupation Tax liability in the amount
34 claimed in the certification, not to exceed 6.25% of the
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1 receipts subject to tax from a qualifying purchase.
2 The Department may require returns to be filed on a
3 quarterly basis. If so required, a return for each calendar
4 quarter shall be filed on or before the twentieth day of the
5 calendar month following the end of such calendar quarter.
6 The taxpayer shall also file a return with the Department for
7 each of the first two months of each calendar quarter, on or
8 before the twentieth day of the following calendar month,
9 stating:
10 1. The name of the seller;
11 2. The address of the principal place of business
12 from which he engages in the business of selling tangible
13 personal property at retail in this State;
14 3. The total amount of taxable receipts received by
15 him during the preceding calendar month from sales of
16 tangible personal property by him during such preceding
17 calendar month, including receipts from charge and time
18 sales, but less all deductions allowed by law;
19 4. The amount of credit provided in Section 2d of
20 this Act;
21 5. The amount of tax due; and
22 6. Such other reasonable information as the
23 Department may require.
24 If a total amount of less than $1 is payable, refundable
25 or creditable, such amount shall be disregarded if it is less
26 than 50 cents and shall be increased to $1 if it is 50 cents
27 or more.
28 Beginning October 1, 1993, a taxpayer who has an average
29 monthly tax liability of $150,000 or more shall make all
30 payments required by rules of the Department by electronic
31 funds transfer. Beginning October 1, 1994, a taxpayer who
32 has an average monthly tax liability of $100,000 or more
33 shall make all payments required by rules of the Department
34 by electronic funds transfer. Beginning October 1, 1995, a
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1 taxpayer who has an average monthly tax liability of $50,000
2 or more shall make all payments required by rules of the
3 Department by electronic funds transfer. The term "average
4 monthly tax liability" shall be the sum of the taxpayer's
5 liabilities under this Act, and under all other State and
6 local occupation and use tax laws administered by the
7 Department, for the immediately preceding calendar year
8 divided by 12.
9 Before August 1 of each year beginning in 1993, the
10 Department shall notify all taxpayers required to make
11 payments by electronic funds transfer. All taxpayers
12 required to make payments by electronic funds transfer shall
13 make those payments for a minimum of one year beginning on
14 October 1.
15 Any taxpayer not required to make payments by electronic
16 funds transfer may make payments by electronic funds transfer
17 with the permission of the Department.
18 All taxpayers required to make payment by electronic
19 funds transfer and any taxpayers authorized to voluntarily
20 make payments by electronic funds transfer shall make those
21 payments in the manner authorized by the Department.
22 The Department shall adopt such rules as are necessary to
23 effectuate a program of electronic funds transfer and the
24 requirements of this Section.
25 Any amount which is required to be shown or reported on
26 any return or other document under this Act shall, if such
27 amount is not a whole-dollar amount, be increased to the
28 nearest whole-dollar amount in any case where the fractional
29 part of a dollar is 50 cents or more, and decreased to the
30 nearest whole-dollar amount where the fractional part of a
31 dollar is less than 50 cents.
32 If the retailer is otherwise required to file a monthly
33 return and if the retailer's average monthly tax liability to
34 the Department does not exceed $200, the Department may
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1 authorize his returns to be filed on a quarter annual basis,
2 with the return for January, February and March of a given
3 year being due by April 20 of such year; with the return for
4 April, May and June of a given year being due by July 20 of
5 such year; with the return for July, August and September of
6 a given year being due by October 20 of such year, and with
7 the return for October, November and December of a given year
8 being due by January 20 of the following year.
9 If the retailer is otherwise required to file a monthly
10 or quarterly return and if the retailer's average monthly tax
11 liability with the Department does not exceed $50, the
12 Department may authorize his returns to be filed on an annual
13 basis, with the return for a given year being due by January
14 20 of the following year.
15 Such quarter annual and annual returns, as to form and
16 substance, shall be subject to the same requirements as
17 monthly returns.
18 Notwithstanding any other provision in this Act
19 concerning the time within which a retailer may file his
20 return, in the case of any retailer who ceases to engage in a
21 kind of business which makes him responsible for filing
22 returns under this Act, such retailer shall file a final
23 return under this Act with the Department not more than one
24 month after discontinuing such business.
25 Where the same person has more than one business
26 registered with the Department under separate registrations
27 under this Act, such person may not file each return that is
28 due as a single return covering all such registered
29 businesses, but shall file separate returns for each such
30 registered business.
31 In addition, with respect to motor vehicles, watercraft,
32 aircraft, and trailers that are required to be registered
33 with an agency of this State, every retailer selling this
34 kind of tangible personal property shall file, with the
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1 Department, upon a form to be prescribed and supplied by the
2 Department, a separate return for each such item of tangible
3 personal property which the retailer sells, except that
4 where, in the same transaction, a retailer of aircraft,
5 watercraft, motor vehicles or trailers transfers more than
6 one aircraft, watercraft, motor vehicle or trailer to another
7 aircraft, watercraft, motor vehicle retailer or trailer
8 retailer for the purpose of resale, that seller for resale
9 may report the transfer of all aircraft, watercraft, motor
10 vehicles or trailers involved in that transaction to the
11 Department on the same uniform invoice-transaction reporting
12 return form. For purposes of this Section, "watercraft"
13 means a Class 2, Class 3, or Class 4 watercraft as defined in
14 Section 3-2 of the Boat Registration and Safety Act, a
15 personal watercraft, or any boat equipped with an inboard
16 motor.
17 Any retailer who sells only motor vehicles, watercraft,
18 aircraft, or trailers that are required to be registered with
19 an agency of this State, so that all retailers' occupation
20 tax liability is required to be reported, and is reported, on
21 such transaction reporting returns and who is not otherwise
22 required to file monthly or quarterly returns, need not file
23 monthly or quarterly returns. However, those retailers shall
24 be required to file returns on an annual basis.
25 The transaction reporting return, in the case of motor
26 vehicles or trailers that are required to be registered with
27 an agency of this State, shall be the same document as the
28 Uniform Invoice referred to in Section 5-402 of The Illinois
29 Vehicle Code and must show the name and address of the
30 seller; the name and address of the purchaser; the amount of
31 the selling price including the amount allowed by the
32 retailer for traded-in property, if any; the amount allowed
33 by the retailer for the traded-in tangible personal property,
34 if any, to the extent to which Section 1 of this Act allows
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1 an exemption for the value of traded-in property; the balance
2 payable after deducting such trade-in allowance from the
3 total selling price; the amount of tax due from the retailer
4 with respect to such transaction; the amount of tax collected
5 from the purchaser by the retailer on such transaction (or
6 satisfactory evidence that such tax is not due in that
7 particular instance, if that is claimed to be the fact); the
8 place and date of the sale; a sufficient identification of
9 the property sold; such other information as is required in
10 Section 5-402 of The Illinois Vehicle Code, and such other
11 information as the Department may reasonably require.
12 The transaction reporting return in the case of
13 watercraft or aircraft must show the name and address of the
14 seller; the name and address of the purchaser; the amount of
15 the selling price including the amount allowed by the
16 retailer for traded-in property, if any; the amount allowed
17 by the retailer for the traded-in tangible personal property,
18 if any, to the extent to which Section 1 of this Act allows
19 an exemption for the value of traded-in property; the balance
20 payable after deducting such trade-in allowance from the
21 total selling price; the amount of tax due from the retailer
22 with respect to such transaction; the amount of tax collected
23 from the purchaser by the retailer on such transaction (or
24 satisfactory evidence that such tax is not due in that
25 particular instance, if that is claimed to be the fact); the
26 place and date of the sale, a sufficient identification of
27 the property sold, and such other information as the
28 Department may reasonably require.
29 Such transaction reporting return shall be filed not
30 later than 20 days after the day of delivery of the item that
31 is being sold, but may be filed by the retailer at any time
32 sooner than that if he chooses to do so. The transaction
33 reporting return and tax remittance or proof of exemption
34 from the Illinois use tax may be transmitted to the
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1 Department by way of the State agency with which, or State
2 officer with whom the tangible personal property must be
3 titled or registered (if titling or registration is required)
4 if the Department and such agency or State officer determine
5 that this procedure will expedite the processing of
6 applications for title or registration.
7 With each such transaction reporting return, the retailer
8 shall remit the proper amount of tax due (or shall submit
9 satisfactory evidence that the sale is not taxable if that is
10 the case), to the Department or its agents, whereupon the
11 Department shall issue, in the purchaser's name, a use tax
12 receipt (or a certificate of exemption if the Department is
13 satisfied that the particular sale is tax exempt) which such
14 purchaser may submit to the agency with which, or State
15 officer with whom, he must title or register the tangible
16 personal property that is involved (if titling or
17 registration is required) in support of such purchaser's
18 application for an Illinois certificate or other evidence of
19 title or registration to such tangible personal property.
20 No retailer's failure or refusal to remit tax under this
21 Act precludes a user, who has paid the proper tax to the
22 retailer, from obtaining his certificate of title or other
23 evidence of title or registration (if titling or registration
24 is required) upon satisfying the Department that such user
25 has paid the proper tax (if tax is due) to the retailer. The
26 Department shall adopt appropriate rules to carry out the
27 mandate of this paragraph.
28 If the user who would otherwise pay tax to the retailer
29 wants the transaction reporting return filed and the payment
30 of the tax or proof of exemption made to the Department
31 before the retailer is willing to take these actions and such
32 user has not paid the tax to the retailer, such user may
33 certify to the fact of such delay by the retailer and may
34 (upon the Department being satisfied of the truth of such
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1 certification) transmit the information required by the
2 transaction reporting return and the remittance for tax or
3 proof of exemption directly to the Department and obtain his
4 tax receipt or exemption determination, in which event the
5 transaction reporting return and tax remittance (if a tax
6 payment was required) shall be credited by the Department to
7 the proper retailer's account with the Department, but
8 without the 2.1% or 1.75% discount provided for in this
9 Section being allowed. When the user pays the tax directly
10 to the Department, he shall pay the tax in the same amount
11 and in the same form in which it would be remitted if the tax
12 had been remitted to the Department by the retailer.
13 Refunds made by the seller during the preceding return
14 period to purchasers, on account of tangible personal
15 property returned to the seller, shall be allowed as a
16 deduction under subdivision 5 of his monthly or quarterly
17 return, as the case may be, in case the seller had
18 theretofore included the receipts from the sale of such
19 tangible personal property in a return filed by him and had
20 paid the tax imposed by this Act with respect to such
21 receipts.
22 Where the seller is a corporation, the return filed on
23 behalf of such corporation shall be signed by the president,
24 vice-president, secretary or treasurer or by the properly
25 accredited agent of such corporation.
26 Where the seller is a limited liability company, the
27 return filed on behalf of the limited liability company shall
28 be signed by a manager, member, or properly accredited agent
29 of the limited liability company.
30 Except as provided in this Section, the retailer filing
31 the return under this Section shall, at the time of filing
32 such return, pay to the Department the amount of tax imposed
33 by this Act less a discount of 2.1% prior to January 1, 1990
34 and 1.75% on and after January 1, 1990, or $5 per calendar
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1 year, whichever is greater, which is allowed to reimburse the
2 retailer for the expenses incurred in keeping records,
3 preparing and filing returns, remitting the tax and supplying
4 data to the Department on request. Any prepayment made
5 pursuant to Section 2d of this Act shall be included in the
6 amount on which such 2.1% or 1.75% discount is computed. In
7 the case of retailers who report and pay the tax on a
8 transaction by transaction basis, as provided in this
9 Section, such discount shall be taken with each such tax
10 remittance instead of when such retailer files his periodic
11 return.
12 If the taxpayer's average monthly tax liability to the
13 Department under this Act, the Use Tax Act, the Service
14 Occupation Tax Act, and the Service Use Tax Act, excluding
15 any liability for prepaid sales tax to be remitted in
16 accordance with Section 2d of this Act, was $10,000 or more
17 during the preceding 4 complete calendar quarters, he shall
18 file a return with the Department each month by the 20th day
19 of the month next following the month during which such tax
20 liability is incurred and shall make payments to the
21 Department on or before the 7th, 15th, 22nd and last day of
22 the month during which such liability is incurred. If the
23 month during which such tax liability is incurred began prior
24 to January 1, 1985, each payment shall be in an amount equal
25 to 1/4 of the taxpayer's actual liability for the month or an
26 amount set by the Department not to exceed 1/4 of the average
27 monthly liability of the taxpayer to the Department for the
28 preceding 4 complete calendar quarters (excluding the month
29 of highest liability and the month of lowest liability in
30 such 4 quarter period). If the month during which such tax
31 liability is incurred begins on or after January 1, 1985 and
32 prior to January 1, 1987, each payment shall be in an amount
33 equal to 22.5% of the taxpayer's actual liability for the
34 month or 27.5% of the taxpayer's liability for the same
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1 calendar month of the preceding year. If the month during
2 which such tax liability is incurred begins on or after
3 January 1, 1987 and prior to January 1, 1988, each payment
4 shall be in an amount equal to 22.5% of the taxpayer's actual
5 liability for the month or 26.25% of the taxpayer's liability
6 for the same calendar month of the preceding year. If the
7 month during which such tax liability is incurred begins on
8 or after January 1, 1988, and prior to January 1, 1989, or
9 begins on or after January 1, 1996, each payment shall be in
10 an amount equal to 22.5% of the taxpayer's actual liability
11 for the month or 25% of the taxpayer's liability for the same
12 calendar month of the preceding year. If the month during
13 which such tax liability is incurred begins on or after
14 January 1, 1989, and prior to January 1, 1996, each payment
15 shall be in an amount equal to 22.5% of the taxpayer's actual
16 liability for the month or 25% of the taxpayer's liability
17 for the same calendar month of the preceding year or 100% of
18 the taxpayer's actual liability for the quarter monthly
19 reporting period. The amount of such quarter monthly
20 payments shall be credited against the final tax liability of
21 the taxpayer's return for that month. Once applicable, the
22 requirement of the making of quarter monthly payments to the
23 Department by taxpayers having an average monthly tax
24 liability of $10,000 or more as determined in the manner
25 provided above shall continue until such taxpayer's average
26 monthly liability to the Department during the preceding 4
27 complete calendar quarters (excluding the month of highest
28 liability and the month of lowest liability) is less than
29 $9,000, or until such taxpayer's average monthly liability to
30 the Department as computed for each calendar quarter of the 4
31 preceding complete calendar quarter period is less than
32 $10,000. However, if a taxpayer can show the Department that
33 a substantial change in the taxpayer's business has occurred
34 which causes the taxpayer to anticipate that his average
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1 monthly tax liability for the reasonably foreseeable future
2 will fall below $10,000, then such taxpayer may petition the
3 Department for a change in such taxpayer's reporting status.
4 The Department shall change such taxpayer's reporting status
5 unless it finds that such change is seasonal in nature and
6 not likely to be long term. If any such quarter monthly
7 payment is not paid at the time or in the amount required by
8 this Section, then the taxpayer shall be liable for penalties
9 and interest on the difference between the minimum amount due
10 as a payment and the amount of such quarter monthly payment
11 actually and timely paid, except insofar as the taxpayer has
12 previously made payments for that month to the Department in
13 excess of the minimum payments previously due as provided in
14 this Section. The Department shall make reasonable rules and
15 regulations to govern the quarter monthly payment amount and
16 quarter monthly payment dates for taxpayers who file on other
17 than a calendar monthly basis.
18 Without regard to whether a taxpayer is required to make
19 quarter monthly payments as specified above, any taxpayer who
20 is required by Section 2d of this Act to collect and remit
21 prepaid taxes and has collected prepaid taxes which average
22 in excess of $25,000 per month during the preceding 2
23 complete calendar quarters, shall file a return with the
24 Department as required by Section 2f and shall make payments
25 to the Department on or before the 7th, 15th, 22nd and last
26 day of the month during which such liability is incurred. If
27 the month during which such tax liability is incurred began
28 prior to the effective date of this amendatory Act of 1985,
29 each payment shall be in an amount not less than 22.5% of the
30 taxpayer's actual liability under Section 2d. If the month
31 during which such tax liability is incurred begins on or
32 after January 1, 1986, each payment shall be in an amount
33 equal to 22.5% of the taxpayer's actual liability for the
34 month or 27.5% of the taxpayer's liability for the same
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1 calendar month of the preceding calendar year. If the month
2 during which such tax liability is incurred begins on or
3 after January 1, 1987, each payment shall be in an amount
4 equal to 22.5% of the taxpayer's actual liability for the
5 month or 26.25% of the taxpayer's liability for the same
6 calendar month of the preceding year. The amount of such
7 quarter monthly payments shall be credited against the final
8 tax liability of the taxpayer's return for that month filed
9 under this Section or Section 2f, as the case may be. Once
10 applicable, the requirement of the making of quarter monthly
11 payments to the Department pursuant to this paragraph shall
12 continue until such taxpayer's average monthly prepaid tax
13 collections during the preceding 2 complete calendar quarters
14 is $25,000 or less. If any such quarter monthly payment is
15 not paid at the time or in the amount required, the taxpayer
16 shall be liable for penalties and interest on such
17 difference, except insofar as the taxpayer has previously
18 made payments for that month in excess of the minimum
19 payments previously due.
20 If any payment provided for in this Section exceeds the
21 taxpayer's liabilities under this Act, the Use Tax Act, the
22 Service Occupation Tax Act and the Service Use Tax Act, as
23 shown on an original monthly return, the Department shall, if
24 requested by the taxpayer, issue to the taxpayer a credit
25 memorandum or refund. The credit memorandum or refund must
26 be issued no later than 30 days after the date of payment.
27 This Section applies only to refunds requested on original
28 returns that were timely filed. All other claims for refund
29 shall be governed by Sections 6a and 6b. The credit evidenced
30 by such credit memorandum may be assigned by the taxpayer to
31 a similar taxpayer under this Act, the Use Tax Act, the
32 Service Occupation Tax Act or the Service Use Tax Act, in
33 accordance with reasonable rules and regulations to be
34 prescribed by the Department. If no such request is made,
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1 the taxpayer may credit such excess payment against tax
2 liability subsequently to be remitted to the Department under
3 this Act, the Use Tax Act, the Service Occupation Tax Act or
4 the Service Use Tax Act, in accordance with reasonable rules
5 and regulations prescribed by the Department. If the
6 Department subsequently determined that all or any part of
7 the credit taken was not actually due to the taxpayer, the
8 taxpayer's 2.1% and 1.75% vendor's discount shall be reduced
9 by 2.1% or 1.75% of the difference between the credit taken
10 and that actually due, and that taxpayer shall be liable for
11 penalties and interest on such difference.
12 If a retailer of motor fuel is entitled to a credit under
13 Section 2d of this Act which exceeds the taxpayer's liability
14 to the Department under this Act for the month which the
15 taxpayer is filing a return, the Department shall issue the
16 taxpayer a credit memorandum for the excess.
17 Beginning January 1, 1990, each month the Department
18 shall pay into the Local Government Tax Fund, a special fund
19 in the State treasury which is hereby created, the net
20 revenue realized for the preceding month from the 1% tax on
21 sales of food for human consumption which is to be consumed
22 off the premises where it is sold (other than alcoholic
23 beverages, soft drinks and food which has been prepared for
24 immediate consumption) and prescription and nonprescription
25 medicines, drugs, medical appliances and insulin, urine
26 testing materials, syringes and needles used by diabetics.
27 Beginning January 1, 1990, each month the Department
28 shall pay into the County and Mass Transit District Fund, a
29 special fund in the State treasury which is hereby created,
30 4% of the net revenue realized for the preceding month from
31 the 6.25% general rate.
32 Beginning January 1, 1990, each month the Department
33 shall pay into the Local Government Tax Fund 16% of the net
34 revenue realized for the preceding month from the 6.25%
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1 general rate on the selling price of tangible personal
2 property.
3 Of the remainder of the moneys received by the Department
4 pursuant to this Act, (a) 1.75% thereof shall be paid into
5 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
6 and on and after July 1, 1989, 3.8% thereof shall be paid
7 into the Build Illinois Fund; provided, however, that if in
8 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
9 as the case may be, of the moneys received by the Department
10 and required to be paid into the Build Illinois Fund pursuant
11 to this Act, Section 9 of the Use Tax Act, Section 9 of the
12 Service Use Tax Act, and Section 9 of the Service Occupation
13 Tax Act, such Acts being hereinafter called the "Tax Acts"
14 and such aggregate of 2.2% or 3.8%, as the case may be, of
15 moneys being hereinafter called the "Tax Act Amount", and (2)
16 the amount transferred to the Build Illinois Fund from the
17 State and Local Sales Tax Reform Fund shall be less than the
18 Annual Specified Amount (as hereinafter defined), an amount
19 equal to the difference shall be immediately paid into the
20 Build Illinois Fund from other moneys received by the
21 Department pursuant to the Tax Acts; the "Annual Specified
22 Amount" means the amounts specified below for fiscal years
23 1986 through 1993:
24 Fiscal Year Annual Specified Amount
25 1986 $54,800,000
26 1987 $76,650,000
27 1988 $80,480,000
28 1989 $88,510,000
29 1990 $115,330,000
30 1991 $145,470,000
31 1992 $182,730,000
32 1993 $206,520,000;
33 and means the Certified Annual Debt Service Requirement (as
34 defined in Section 13 of the Build Illinois Bond Act) or the
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1 Tax Act Amount, whichever is greater, for fiscal year 1994
2 and each fiscal year thereafter; and further provided, that
3 if on the last business day of any month the sum of (1) the
4 Tax Act Amount required to be deposited into the Build
5 Illinois Bond Account in the Build Illinois Fund during such
6 month and (2) the amount transferred to the Build Illinois
7 Fund from the State and Local Sales Tax Reform Fund shall
8 have been less than 1/12 of the Annual Specified Amount, an
9 amount equal to the difference shall be immediately paid into
10 the Build Illinois Fund from other moneys received by the
11 Department pursuant to the Tax Acts; and, further provided,
12 that in no event shall the payments required under the
13 preceding proviso result in aggregate payments into the Build
14 Illinois Fund pursuant to this clause (b) for any fiscal year
15 in excess of the greater of (i) the Tax Act Amount or (ii)
16 the Annual Specified Amount for such fiscal year. The
17 amounts payable into the Build Illinois Fund under clause (b)
18 of the first sentence in this paragraph shall be payable only
19 until such time as the aggregate amount on deposit under each
20 trust indenture securing Bonds issued and outstanding
21 pursuant to the Build Illinois Bond Act is sufficient, taking
22 into account any future investment income, to fully provide,
23 in accordance with such indenture, for the defeasance of or
24 the payment of the principal of, premium, if any, and
25 interest on the Bonds secured by such indenture and on any
26 Bonds expected to be issued thereafter and all fees and costs
27 payable with respect thereto, all as certified by the
28 Director of the Bureau of the Budget. If on the last
29 business day of any month in which Bonds are outstanding
30 pursuant to the Build Illinois Bond Act, the aggregate of
31 moneys deposited in the Build Illinois Bond Account in the
32 Build Illinois Fund in such month shall be less than the
33 amount required to be transferred in such month from the
34 Build Illinois Bond Account to the Build Illinois Bond
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1 Retirement and Interest Fund pursuant to Section 13 of the
2 Build Illinois Bond Act, an amount equal to such deficiency
3 shall be immediately paid from other moneys received by the
4 Department pursuant to the Tax Acts to the Build Illinois
5 Fund; provided, however, that any amounts paid to the Build
6 Illinois Fund in any fiscal year pursuant to this sentence
7 shall be deemed to constitute payments pursuant to clause (b)
8 of the first sentence of this paragraph and shall reduce the
9 amount otherwise payable for such fiscal year pursuant to
10 that clause (b). The moneys received by the Department
11 pursuant to this Act and required to be deposited into the
12 Build Illinois Fund are subject to the pledge, claim and
13 charge set forth in Section 12 of the Build Illinois Bond
14 Act.
15 Subject to payment of amounts into the Build Illinois
16 Fund as provided in the preceding paragraph or in any
17 amendment thereto hereafter enacted, the following specified
18 monthly installment of the amount requested in the
19 certificate of the Chairman of the Metropolitan Pier and
20 Exposition Authority provided under Section 8.25f of the
21 State Finance Act, but not in excess of sums designated as
22 "Total Deposit", shall be deposited in the aggregate from
23 collections under Section 9 of the Use Tax Act, Section 9 of
24 the Service Use Tax Act, Section 9 of the Service Occupation
25 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
26 into the McCormick Place Expansion Project Fund in the
27 specified fiscal years.
28 Fiscal Year Total Deposit
29 1993 $0
30 1994 53,000,000
31 1995 58,000,000
32 1996 61,000,000
33 1997 64,000,000
34 1998 68,000,000
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1 1999 71,000,000
2 2000 75,000,000
3 2001 80,000,000
4 2002 84,000,000
5 2003 89,000,000
6 2004 93,000,000
7 2005 97,000,000
8 2006 102,000,000
9 2007 and 106,000,000
10 each fiscal year
11 thereafter that bonds
12 are outstanding under
13 Section 13.2 of the
14 Metropolitan Pier and
15 Exposition Authority
16 Act, but not after fiscal year 2029.
17 Beginning July 20, 1993 and in each month of each fiscal
18 year thereafter, one-eighth of the amount requested in the
19 certificate of the Chairman of the Metropolitan Pier and
20 Exposition Authority for that fiscal year, less the amount
21 deposited into the McCormick Place Expansion Project Fund by
22 the State Treasurer in the respective month under subsection
23 (g) of Section 13 of the Metropolitan Pier and Exposition
24 Authority Act, plus cumulative deficiencies in the deposits
25 required under this Section for previous months and years,
26 shall be deposited into the McCormick Place Expansion Project
27 Fund, until the full amount requested for the fiscal year,
28 but not in excess of the amount specified above as "Total
29 Deposit", has been deposited.
30 Subject to payment of amounts into the Build Illinois
31 Fund and the McCormick Place Expansion Project Fund pursuant
32 to the preceding paragraphs or in any amendment thereto
33 hereafter enacted, each month the Department shall pay into
34 the Local Government Distributive Fund 0.4% of the net
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1 revenue realized for the preceding month from the 5% general
2 rate or 0.4% of 80% of the net revenue realized for the
3 preceding month from the 6.25% general rate, as the case may
4 be, on the selling price of tangible personal property which
5 amount shall, subject to appropriation, be distributed as
6 provided in Section 2 of the State Revenue Sharing Act. No
7 payments or distributions pursuant to this paragraph shall be
8 made if the tax imposed by this Act on photoprocessing
9 products is declared unconstitutional, or if the proceeds
10 from such tax are unavailable for distribution because of
11 litigation.
12 Subject to payment of amounts into the Build Illinois
13 Fund, the McCormick Place Expansion Project to the preceding
14 paragraphs or in any amendments thereto hereafter enacted,
15 beginning July 1, 1993, the Department shall each month pay
16 into the Illinois Tax Increment Fund 0.27% of 80% of the net
17 revenue realized for the preceding month from the 6.25%
18 general rate on the selling price of tangible personal
19 property.
20 Of the remainder of the moneys received by the Department
21 pursuant to this Act, 75% thereof shall be paid into the
22 State Treasury and 25% shall be reserved in a special account
23 and used only for the transfer to the Common School Fund as
24 part of the monthly transfer from the General Revenue Fund in
25 accordance with Section 8a of the State Finance Act.
26 The Department may, upon separate written notice to a
27 taxpayer, require the taxpayer to prepare and file with the
28 Department on a form prescribed by the Department within not
29 less than 60 days after receipt of the notice an annual
30 information return for the tax year specified in the notice.
31 Such annual return to the Department shall include a
32 statement of gross receipts as shown by the retailer's last
33 Federal income tax return. If the total receipts of the
34 business as reported in the Federal income tax return do not
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1 agree with the gross receipts reported to the Department of
2 Revenue for the same period, the retailer shall attach to his
3 annual return a schedule showing a reconciliation of the 2
4 amounts and the reasons for the difference. The retailer's
5 annual return to the Department shall also disclose the cost
6 of goods sold by the retailer during the year covered by such
7 return, opening and closing inventories of such goods for
8 such year, costs of goods used from stock or taken from stock
9 and given away by the retailer during such year, payroll
10 information of the retailer's business during such year and
11 any additional reasonable information which the Department
12 deems would be helpful in determining the accuracy of the
13 monthly, quarterly or annual returns filed by such retailer
14 as provided for in this Section.
15 If the annual information return required by this Section
16 is not filed when and as required, the taxpayer shall be
17 liable as follows:
18 (i) Until January 1, 1994, the taxpayer shall be
19 liable for a penalty equal to 1/6 of 1% of the tax due
20 from such taxpayer under this Act during the period to be
21 covered by the annual return for each month or fraction
22 of a month until such return is filed as required, the
23 penalty to be assessed and collected in the same manner
24 as any other penalty provided for in this Act.
25 (ii) On and after January 1, 1994, the taxpayer
26 shall be liable for a penalty as described in Section 3-4
27 of the Uniform Penalty and Interest Act.
28 The chief executive officer, proprietor, owner or highest
29 ranking manager shall sign the annual return to certify the
30 accuracy of the information contained therein. Any person
31 who willfully signs the annual return containing false or
32 inaccurate information shall be guilty of perjury and
33 punished accordingly. The annual return form prescribed by
34 the Department shall include a warning that the person
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1 signing the return may be liable for perjury.
2 The provisions of this Section concerning the filing of
3 an annual information return do not apply to a retailer who
4 is not required to file an income tax return with the United
5 States Government.
6 As soon as possible after the first day of each month,
7 upon certification of the Department of Revenue, the
8 Comptroller shall order transferred and the Treasurer shall
9 transfer from the General Revenue Fund to the Motor Fuel Tax
10 Fund an amount equal to 1.7% of 80% of the net revenue
11 realized under this Act for the second preceding month;
12 except that this transfer shall not be made for the months
13 February through June, 1992.
14 Net revenue realized for a month shall be the revenue
15 collected by the State pursuant to this Act, less the amount
16 paid out during that month as refunds to taxpayers for
17 overpayment of liability.
18 For greater simplicity of administration, manufacturers,
19 importers and wholesalers whose products are sold at retail
20 in Illinois by numerous retailers, and who wish to do so, may
21 assume the responsibility for accounting and paying to the
22 Department all tax accruing under this Act with respect to
23 such sales, if the retailers who are affected do not make
24 written objection to the Department to this arrangement.
25 Any person who promotes, organizes, provides retail
26 selling space for concessionaires or other types of sellers
27 at the Illinois State Fair, DuQuoin State Fair, county fairs,
28 local fairs, art shows, flea markets and similar exhibitions
29 or events, including any transient merchant as defined by
30 Section 2 of the Transient Merchant Act of 1987, is required
31 to file a report with the Department providing the name of
32 the merchant's business, the name of the person or persons
33 engaged in merchant's business, the permanent address and
34 Illinois Retailers Occupation Tax Registration Number of the
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1 merchant, the dates and location of the event and other
2 reasonable information that the Department may require. The
3 report must be filed not later than the 20th day of the month
4 next following the month during which the event with retail
5 sales was held. Any person who fails to file a report
6 required by this Section commits a business offense and is
7 subject to a fine not to exceed $250.
8 Any person engaged in the business of selling tangible
9 personal property at retail as a concessionaire or other type
10 of seller at the Illinois State Fair, county fairs, art
11 shows, flea markets and similar exhibitions or events, or any
12 transient merchants, as defined by Section 2 of the Transient
13 Merchant Act of 1987, may be required to make a daily report
14 of the amount of such sales to the Department and to make a
15 daily payment of the full amount of tax due. The Department
16 shall impose this requirement when it finds that there is a
17 significant risk of loss of revenue to the State at such an
18 exhibition or event. Such a finding shall be based on
19 evidence that a substantial number of concessionaires or
20 other sellers who are not residents of Illinois will be
21 engaging in the business of selling tangible personal
22 property at retail at the exhibition or event, or other
23 evidence of a significant risk of loss of revenue to the
24 State. The Department shall notify concessionaires and other
25 sellers affected by the imposition of this requirement. In
26 the absence of notification by the Department, the
27 concessionaires and other sellers shall file their returns as
28 otherwise required in this Section.
29 (Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
30 89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
31 1-1-99; 90-612, eff. 7-8-98.)
32 (35 ILCS 120/3a new)
33 Sec. 3a. Use and Occupation Tax Refund Fund.
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1 (a) Beginning on July 1, 1999, the Department must
2 deposit the percentage of the taxes as prescribed by this
3 Section that were collected under this Act, the Use Tax Act,
4 the Service Use Tax Act, the Service Occupation Tax Act,
5 Sections 5-1006, 5-1006.5, 5-1007, and 5-1008 of the Counties
6 Code, Sections 8-11-1, 8-11-1.1, 8-11-1.3, 8-11-1.4,
7 8-11-1.5, 8-11-1.6, 8-11-1.7, 8-11-5, and 8-11-6 of the
8 Illinois Municipal Code, Section 245-12 of the Civic Center
9 Code, Section 5.01 of the Local Mass Transit District Act,
10 Section 4.03 of the Regional Transportation Authority Act,
11 and Section 4 of the Water Commission Act of 1985 into the
12 Use and Occupation Tax Refund Fund, a fund created in the
13 State Treasury. On or before June 30, 1999 the Department
14 must determine the amount of claims for credit and refund
15 filed and outstanding and report that amount to the State
16 Treasurer who must direct the transfer of the amount from the
17 General Revenue Fund into the Use and Occupation Tax Refund
18 Fund. From July 1, 1999 through June 30, 2000, the
19 Department must deposit 1.5% of the amounts collected under
20 this Act, the Use Tax Act, the Service Use Tax Act, the
21 Service Occupation Tax Act, Sections 5-1006, 5-1006.5,
22 5-1007, and 5-1008 of the Counties Code, Sections 8-11-1,
23 8-11-1.1, 8-11-1.3, 8-11-1.4, 8-11-1.5, 8-11-1.6, 8-11-1.7,
24 8-11-5, and 8-11-6 of the Illinois Municipal Code, Section
25 245-12 of the Civic Center Code, Section 5.01 of the Local
26 Mass Transit District Act, Section 4.03 of the Regional
27 Transportation Authority Act, and Section 4 of the Water
28 Commission Act of 1985 into the Use and Occupation Tax Refund
29 Fund. Beginning July 1, 2001 and on each July 1st
30 thereafter, the percentage deposited into the Use and
31 Occupation Tax Refund Fund shall be the Annual Percentage.
32 The Annual Percentage shall be calculated as a fraction, the
33 numerator of which is the amount of refunds requested under
34 Sections 3, 6a, and 6b of this Act and approved for payment
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1 by the Department during the preceding fiscal year as a
2 result of overpayment of tax liability under this Act, the
3 Use Tax Act, the Service Use Tax Act, the Service Occupation
4 Tax Act, Sections 5-1006, 5-1006.5, 5-1007, and 5-1008 of the
5 Counties Code, Sections 8-11-1, 8-11-1.1, 8-11-1.3, 8-11-1.4,
6 8-11-1.5, 8-11-1.6, 8-11-1.7, 8-11-5, and 8-11-6 of the
7 Illinois Municipal Code, Section 245-12 of the Civic Center
8 Code, Section 5.01 of the Local Mass Transit District Act,
9 Section 4.03 of the Regional Transportation Authority Act,
10 and Section 4 of the Water Commission Act of 1985 plus the
11 amount of refunds remaining approved but unpaid at the end of
12 the preceding fiscal year minus any surplus that remains on
13 deposit in the Use and Occupation Tax Refund Fund at the end
14 of the preceding year, and the denominator of the Annual
15 Percentage is the amounts that will be collected under this
16 Act, the Use Tax Act, the Service Use Tax Act, the Service
17 Occupation Tax Act, Sections 5-1006, 5- 1006.5, 5-1007, and
18 5-1008 of the Counties Code, Sections 8-11-1, 8-11-1.1,
19 8-11-1.3, 8-11-1.4, 8-11-1.5, 8-11-1.6, 8-11-1.7, 8-11-5, and
20 8-11-6 of the Illinois Municipal Code, Section 245-12 of the
21 Civic Center Code, Section 5.01 of the Local Mass Transit
22 District Act, Section 4.03 of the Regional Transportation
23 Authority Act, and Section 4 of the Water Commission Act of
24 1985 during the preceding fiscal year. The Director of
25 Revenue shall certify the Annual Percentage to the
26 Comptroller on the last business day of the fiscal year
27 immediately preceding the fiscal year for which it is to be
28 effective.
29 (b) Beginning on July 1, 1999, money in the Use and
30 Occupation Tax Refund Fund must be expended exclusively for
31 the purpose of paying refunds resulting from overpayment of
32 tax liability under this Act, the Use Tax Act, the Service
33 Use Tax Act, the Service Occupation Tax Act, Sections 5-1006,
34 5-1006.5, 5-1007, and 5-1008 of the Counties Code, Sections
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1 8-11-1, 8-11-1.1, 8-11-1.3, 8-11-1.4, 8-11-1.5, 8-11-1.6,
2 8-11-1.7, 8-11-5, and 8-11-6 of the Illinois Municipal Code,
3 Section 245-12 of the Civic Center Code, Section 5.01 of the
4 Local Mass Transit District Act, Section 4.03 of the Regional
5 Transportation Authority Act, and Section 4 of the Water
6 Commission Act of 1985. The Director must order payment of
7 refunds resulting from overpayment of tax liability under
8 this Act, the Use Tax Act, the Service Use Tax Act, the
9 Service Occupation Tax Act, Sections 5-1006, 5-1006.5,
10 5-1007, and 5-1008 of the Counties Code, Sections 8-11-1,
11 8-11-1.1, 8-11-1.3, 8-11-1.4, 8-11-1.5, 8-11-1.6, 8-11-1.7,
12 8-11-5, and 8-11-6 of the Illinois Municipal Code, Section
13 245-12 of the Civic Center Code, Section 5.01 of the Local
14 Mass Transit District Act, Section 4.03 of the Regional
15 Transportation Authority Act, and Section 4 of the Water
16 Commission Act of 1985 from the Use and Occupation Tax Refund
17 Fund but only to the extent that amounts collected this Act,
18 the Use Tax Act, the Service Use Tax Act, the Service
19 Occupation Tax Act, Sections 5-1006, 5-1006.5, 5-1007, and
20 5-1008 of the Counties Code, Sections 8-11-1, 8-11-1.1,
21 8-11-1.3, 8-11-1.4, 8-11-1.5, 8-11-1.6, 8-11-1.7, 8- 11-5,
22 and 8-11-6 of the Illinois Municipal Code, Section 245-12 of
23 the Civic Center Code, Section 5.01 of the Local Mass Transit
24 District Act, Section 4.03 of the Regional Transportation
25 Authority Act, and Section 4 of the Water Commission Act of
26 1985.
27 (c) This Act constitutes an irrevocable and continuing
28 appropriation from the Use and Occupation Tax Refund Fund for
29 the purpose of paying refunds upon the order of the Director
30 according to this Section.
31 (35 ILCS 120/6b) (from Ch. 120, par. 445b)
32 Sec. 6b. Examination of claim for credit or refund.
33 (a) As soon as practicable after a claim for credit or
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1 refund is filed, the Department shall examine the same and
2 determine the amount of credit or refund to which the
3 claimant or the taxpayer's legal representative, in the event
4 that the taxpayer has died or become incompetent, is entitled
5 and shall either issue a notice of refund or credit to the
6 claimant or issue a notice of denial, by its Notice of
7 Tentative Determination of Claim, notify the claimant or his
8 legal representative of such determination, which
9 determination shall be prima facie correct. Proof of such
10 determination by the Department may be made at any hearing
11 before the Department or in any legal proceeding by a
12 reproduced copy of the Department's record relating thereto,
13 in the name of the Department under the certificate of the
14 Director of Revenue. Such reproduced copy shall, without
15 further proof, be admitted into evidence before the
16 Department or in any legal proceeding and shall be prima
17 facie proof of the correctness of the Department's
18 determination, as shown therein. If such claimant, or the
19 legal representative of a deceased or incompetent taxpayer,
20 within 60 days after the Department's Notice of Tentative
21 determination of claim, files a protest thereto and requests
22 a hearing thereon, the Department shall give notice to such
23 claimant, or the legal representative of a deceased taxpayer,
24 or a taxpayer who is under legal disability of the time and
25 place fixed for such hearing, and shall hold a hearing in
26 conformity with the provisions of this Act, and pursuant
27 thereto shall issue its Final determination of the amount, if
28 any, found to be due as a result of such hearing, to such
29 claimant, or the legal representative of a deceased taxpayer,
30 or a taxpayer who is under legal disability. The Department's
31 final determination made in response to a protest of the
32 claimant may be reviewed by the proper Circuit Court, in the
33 same manner, within the same time, upon the same terms and
34 conditions and to the same extent, as provided by Section 12
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1 of this Act.
2 (b) If the Department has failed to approve or deny the
3 claim before the expiration of 6 months from the date the
4 claim was filed, the claimant may nevertheless thereafter
5 file with the Department a written protest in the form as the
6 Department adopts by rule.
7 (c) In any case in which there has been an erroneous
8 refund of tax payable under this Act, a notice of tax
9 liability may be issued at any time within 3 years from the
10 making of that refund, or within 5 years from the making of
11 that refund if it appears that any part of the refund was
12 induced by fraud or the misrepresentation of a material fact.
13 The amount of any proposed assessment set forth in the notice
14 shall be limited to the amount of the erroneous refund.
15 (Source: P.A. 87-876; 87-879; 88-45.)
16 (35 ILCS 120/6c) (from Ch. 120, par. 445c)
17 Sec. 6c. Claims for credit or refund. If a protest to
18 the Department's Notice of Tentative Determination of Claim
19 is not filed within 60 days and a request for a hearing
20 thereon is not made as provided in Section 6b of this Act,
21 the said Notice shall thereupon become and operate as a Final
22 Determination; and, if the Department's Notice of Tentative
23 Determination, upon becoming a Final Determination, indicates
24 no amount due to the claimant, or, upon issuance of a credit
25 memorandum or refund for the amount, if any, found by the
26 Department to be due, the claim in all its aspects shall be
27 closed and no longer open to protest, hearing, judicial
28 review, or by any other proceeding or action whatever, either
29 before the Department or in any court of this State. Claims
30 for credit or refund hereunder must be filed with and
31 initially determined by the Department, the remedy herein
32 provided being exclusive; and no court shall have
33 jurisdiction to determine the merits of any claim except upon
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1 review as provided herein.
2 (Source: P.A. 90-491, eff. 1-1-98.)
3 Section 30. The Counties Code is amended by changing
4 Sections 5-1006 and 5-1006.5 as follows:
5 (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
6 Sec. 5-1006. Home Rule County Retailers' Occupation Tax
7 Law. Any county that is a home rule unit may impose a tax
8 upon all persons engaged in the business of selling tangible
9 personal property, other than an item of tangible personal
10 property titled or registered with an agency of this State's
11 government, at retail in the county on the gross receipts
12 from such sales made in the course of their business. If
13 imposed, this tax shall only be imposed in 1/4% increments.
14 On and after September 1, 1991, this additional tax may not
15 be imposed on the sales of food for human consumption which
16 is to be consumed off the premises where it is sold (other
17 than alcoholic beverages, soft drinks and food which has been
18 prepared for immediate consumption) and prescription and
19 nonprescription medicines, drugs, medical appliances and
20 insulin, urine testing materials, syringes and needles used
21 by diabetics. The tax imposed by a home rule county pursuant
22 to this Section and all civil penalties that may be assessed
23 as an incident thereof shall be collected and enforced by the
24 State Department of Revenue. The certificate of registration
25 that is issued by the Department to a retailer under the
26 Retailers' Occupation Tax Act shall permit the retailer to
27 engage in a business that is taxable under any ordinance or
28 resolution enacted pursuant to this Section without
29 registering separately with the Department under such
30 ordinance or resolution or under this Section. The
31 Department shall have full power to administer and enforce
32 this Section; to collect all taxes and penalties due
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1 hereunder; to dispose of taxes and penalties so collected in
2 the manner hereinafter provided; and to determine all rights
3 to credit memoranda arising on account of the erroneous
4 payment of tax or penalty hereunder. In the administration
5 of, and compliance with, this Section, the Department and
6 persons who are subject to this Section shall have the same
7 rights, remedies, privileges, immunities, powers and duties,
8 and be subject to the same conditions, restrictions,
9 limitations, penalties and definitions of terms, and employ
10 the same modes of procedure, as are prescribed in Sections 1,
11 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in
12 respect to all provisions therein other than the State rate
13 of tax), 3a, 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
14 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
15 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
16 Penalty and Interest Act, as fully as if those provisions
17 were set forth herein.
18 No tax may be imposed by a home rule county pursuant to
19 this Section unless the county also imposes a tax at the same
20 rate pursuant to Section 5-1007.
21 Persons subject to any tax imposed pursuant to the
22 authority granted in this Section may reimburse themselves
23 for their seller's tax liability hereunder by separately
24 stating such tax as an additional charge, which charge may be
25 stated in combination, in a single amount, with State tax
26 which sellers are required to collect under the Use Tax Act,
27 pursuant to such bracket schedules as the Department may
28 prescribe.
29 Whenever the Department determines that a refund should
30 be made under this Section to a claimant instead of issuing a
31 credit memorandum, the Department shall notify the State
32 Comptroller, who shall cause the order to be drawn for the
33 amount specified and to the person named in the notification
34 from the Department. The refund shall be paid by the State
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1 Treasurer out of the home rule county retailers' occupation
2 tax fund.
3 The Department shall forthwith pay over to the State
4 Treasurer, ex officio, as trustee, all taxes and penalties
5 collected hereunder. On or before the 25th day of each
6 calendar month, the Department shall prepare and certify to
7 the Comptroller the disbursement of stated sums of money to
8 named counties, the counties to be those from which retailers
9 have paid taxes or penalties hereunder to the Department
10 during the second preceding calendar month. The amount to be
11 paid to each county shall be the amount (not including credit
12 memoranda) collected hereunder during the second preceding
13 calendar month by the Department plus an amount the
14 Department determines is necessary to offset any amounts that
15 were erroneously paid to a different taxing body, and not
16 including an amount equal to the amount of refunds made
17 during the second preceding calendar month by the Department
18 on behalf of such county, and not including any amount which
19 the Department determines is necessary to offset any amounts
20 which were payable to a different taxing body but were
21 erroneously paid to the county. Within 10 days after receipt,
22 by the Comptroller, of the disbursement certification to the
23 counties provided for in this Section to be given to the
24 Comptroller by the Department, the Comptroller shall cause
25 the orders to be drawn for the respective amounts in
26 accordance with the directions contained in the
27 certification.
28 In addition to the disbursement required by the preceding
29 paragraph, an allocation shall be made in March of each year
30 to each county that received more than $500,000 in
31 disbursements under the preceding paragraph in the preceding
32 calendar year. The allocation shall be in an amount equal to
33 the average monthly distribution made to each such county
34 under the preceding paragraph during the preceding calendar
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1 year (excluding the 2 months of highest receipts). The
2 distribution made in March of each year subsequent to the
3 year in which an allocation was made pursuant to this
4 paragraph and the preceding paragraph shall be reduced by the
5 amount allocated and disbursed under this paragraph in the
6 preceding calendar year. The Department shall prepare and
7 certify to the Comptroller for disbursement the allocations
8 made in accordance with this paragraph.
9 For the purpose of determining the local governmental
10 unit whose tax is applicable, a retail sale by a producer of
11 coal or other mineral mined in Illinois is a sale at retail
12 at the place where the coal or other mineral mined in
13 Illinois is extracted from the earth. This paragraph does
14 not apply to coal or other mineral when it is delivered or
15 shipped by the seller to the purchaser at a point outside
16 Illinois so that the sale is exempt under the United States
17 Constitution as a sale in interstate or foreign commerce.
18 Nothing in this Section shall be construed to authorize a
19 county to impose a tax upon the privilege of engaging in any
20 business which under the Constitution of the United States
21 may not be made the subject of taxation by this State.
22 An ordinance or resolution imposing or discontinuing a
23 tax hereunder or effecting a change in the rate thereof shall
24 be adopted and a certified copy thereof filed with the
25 Department on or before the first day of June, whereupon the
26 Department shall proceed to administer and enforce this
27 Section as of the first day of September next following such
28 adoption and filing. Beginning January 1, 1992, an ordinance
29 or resolution imposing or discontinuing the tax hereunder or
30 effecting a change in the rate thereof shall be adopted and a
31 certified copy thereof filed with the Department on or before
32 the first day of July, whereupon the Department shall proceed
33 to administer and enforce this Section as of the first day of
34 October next following such adoption and filing. Beginning
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1 January 1, 1993, an ordinance or resolution imposing or
2 discontinuing the tax hereunder or effecting a change in the
3 rate thereof shall be adopted and a certified copy thereof
4 filed with the Department on or before the first day of
5 October, whereupon the Department shall proceed to administer
6 and enforce this Section as of the first day of January next
7 following such adoption and filing. Beginning April 1, 1998,
8 an ordinance or resolution imposing or discontinuing the tax
9 hereunder or effecting a change in the rate thereof shall
10 either (i) be adopted and a certified copy thereof filed with
11 the Department on or before the first day of April, whereupon
12 the Department shall proceed to administer and enforce this
13 Section as of the first day of July next following the
14 adoption and filing; or (ii) be adopted and a certified copy
15 thereof filed with the Department on or before the first day
16 of October, whereupon the Department shall proceed to
17 administer and enforce this Section as of the first day of
18 January next following the adoption and filing.
19 When certifying the amount of a monthly disbursement to a
20 county under this Section, the Department shall increase or
21 decrease such amount by an amount necessary to offset any
22 misallocation of previous disbursements. The offset amount
23 shall be the amount erroneously disbursed within the previous
24 6 months from the time a misallocation is discovered.
25 This Section shall be known and may be cited as the Home
26 Rule County Retailers' Occupation Tax Law.
27 (Source: P.A. 90-689, eff. 7-31-98.)
28 (55 ILCS 5/5-1006.5)
29 Sec. 5-1006.5. Special County Retailers' Occupation Tax
30 For Public Safety.
31 (a) The county board of any county may impose a tax upon
32 all persons engaged in the business of selling tangible
33 personal property, other than personal property titled or
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1 registered with an agency of this State's government, at
2 retail in the county on the gross receipts from the sales
3 made in the course of business to provide revenue to be used
4 exclusively for public safety purposes in that county, if a
5 proposition for the tax has been submitted to the electors of
6 that county and approved by a majority of those voting on the
7 question. If imposed, this tax shall be imposed only in
8 one-quarter percent increments. By resolution, the county
9 board may order the proposition to be submitted at any
10 election. The county clerk shall certify the question to the
11 proper election authority, who shall submit the proposition
12 at an election in accordance with the general election law.
13 The proposition shall be in substantially the following
14 form:
15 "Shall (name of county) be authorized to impose a
16 public safety tax at the rate of .... upon all persons
17 engaged in the business of selling tangible personal
18 property at retail in the county on gross receipts from
19 the sales made in the course of their business to be used
20 for crime prevention, detention, and other public safety
21 purposes?"
22 Votes shall be recorded as Yes or No. If a majority of the
23 electors voting on the proposition vote in favor of it, the
24 county may impose the tax.
25 This additional tax may not be imposed on the sales of
26 food for human consumption that is to be consumed off the
27 premises where it is sold (other than alcoholic beverages,
28 soft drinks, and food which has been prepared for immediate
29 consumption) and prescription and non-prescription medicines,
30 drugs, medical appliances and insulin, urine testing
31 materials, syringes, and needles used by diabetics. The tax
32 imposed by a county under this Section and all civil
33 penalties that may be assessed as an incident of the tax
34 shall be collected and enforced by the Illinois Department of
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1 Revenue. The certificate of registration that is issued by
2 the Department to a retailer under the Retailers' Occupation
3 Tax Act shall permit the retailer to engage in a business
4 that is taxable without registering separately with the
5 Department under an ordinance or resolution under this
6 Section. The Department has full power to administer and
7 enforce this Section, to collect all taxes and penalties due
8 under this Section, to dispose of taxes and penalties so
9 collected in the manner provided in this Section, and to
10 determine all rights to credit memoranda arising on account
11 of the erroneous payment of a tax or penalty under this
12 Section. In the administration of and compliance with this
13 Section, the Department and persons who are subject to this
14 Section shall (i) have the same rights, remedies, privileges,
15 immunities, powers, and duties, (ii) be subject to the same
16 conditions, restrictions, limitations, penalties, and
17 definitions of terms, and (iii) employ the same modes of
18 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
19 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to
20 all provisions contained in those Sections other than the
21 State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except
22 provisions relating to transaction returns and quarter
23 monthly payments), 3a, 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
24 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and
25 13 of the Retailers' Occupation Tax Act and Section 3-7 of
26 the Uniform Penalty and Interest Act as if those provisions
27 were set forth in this Section.
28 Persons subject to any tax imposed under the authority
29 granted in this Section may reimburse themselves for their
30 sellers' tax liability by separately stating the tax as an
31 additional charge, which charge may be stated in combination,
32 in a single amount, with State tax which sellers are required
33 to collect under the Use Tax Act, pursuant to such bracketed
34 schedules as the Department may 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 the notification
6 from the Department. The refund shall be paid by the State
7 Treasurer out of the County Public Safety Retailers'
8 Occupation Tax Fund.
9 (b) If a tax has been imposed under subsection (a), a
10 service occupation tax shall also be imposed at the same rate
11 upon all persons engaged, in the county, in the business of
12 making sales of service, who, as an incident to making those
13 sales of service, transfer tangible personal property within
14 the county as an incident to a sale of service. This tax may
15 not be imposed on sales of food for human consumption that is
16 to be consumed off the premises where it is sold (other than
17 alcoholic beverages, soft drinks, and food prepared for
18 immediate consumption) and prescription and non-prescription
19 medicines, drugs, medical appliances and insulin, urine
20 testing materials, syringes, and needles used by diabetics.
21 The tax imposed under this subsection and all civil penalties
22 that may be assessed as an incident thereof shall be
23 collected and enforced by the Department of Revenue. The
24 Department has full power to administer and enforce this
25 subsection; to collect all taxes and penalties due hereunder;
26 to dispose of taxes and penalties so collected in the manner
27 hereinafter provided; and to determine all rights to credit
28 memoranda arising on account of the erroneous payment of tax
29 or penalty hereunder. In the administration of, and
30 compliance with this subsection, the Department and persons
31 who are subject to this paragraph shall (i) have the same
32 rights, remedies, privileges, immunities, powers, and duties,
33 (ii) be subject to the same conditions, restrictions,
34 limitations, penalties, exclusions, exemptions, and
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1 definitions of terms, and (iii) employ the same modes of
2 procedure as are prescribed in Sections 2 (except that the
3 reference to State in the definition of supplier maintaining
4 a place of business in this State shall mean the county), 2a,
5 2b, 2c, 3 through 3-50 (in respect to all provisions therein
6 other than the State rate of tax), 4 (except that the
7 reference to the State shall be to the county), 5, 7, 8
8 (except that the jurisdiction to which the tax shall be a
9 debt to the extent indicated in that Section 8 shall be the
10 county), 9 (except as to the disposition of taxes and
11 penalties collected), 10, 11, 12 (except the reference
12 therein to Section 2b of the Retailers' Occupation Tax Act),
13 13 (except that any reference to the State shall mean the
14 county), Section 15, 16, 17, 18, 19 and 20 of the Service
15 Occupation Tax Act and Section 3-7 of the Uniform Penalty and
16 Interest Act, as fully as if those provisions were set forth
17 herein.
18 Persons subject to any tax imposed under the authority
19 granted in this subsection may reimburse themselves for their
20 serviceman's tax liability by separately stating the tax as
21 an additional charge, which charge may be stated in
22 combination, in a single amount, with State tax that
23 servicemen are authorized to collect under the Service Use
24 Tax Act, in accordance with such bracket schedules as the
25 Department may prescribe.
26 Whenever the Department determines that a refund should
27 be made under this subsection to a claimant instead of
28 issuing a credit memorandum, the Department shall notify the
29 State Comptroller, who shall cause the warrant to be drawn
30 for the amount specified, and to the person named, in the
31 notification from the Department. The refund shall be paid
32 by the State Treasurer out of the County Public Safety
33 Retailers' Occupation Fund.
34 Nothing in this subsection shall be construed to
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1 authorize the county to impose a tax upon the privilege of
2 engaging in any business which under the Constitution of the
3 United States may not be made the subject of taxation by the
4 State.
5 (c) The Department shall immediately pay over to the
6 State Treasurer, ex officio, as trustee, all taxes and
7 penalties collected under this Section to be deposited into
8 the County Public Safety Retailers' Occupation Tax Fund,
9 which shall be an unappropriated trust fund held outside of
10 the State treasury. On or before the 25th day of each
11 calendar month, the Department shall prepare and certify to
12 the Comptroller the disbursement of stated sums of money to
13 the counties from which retailers have paid taxes or
14 penalties to the Department during the second preceding
15 calendar month. The amount to be paid to each county shall
16 be the amount (not including credit memoranda) collected
17 under this Section during the second preceding calendar month
18 by the Department plus an amount the Department determines is
19 necessary to offset any amounts that were erroneously paid to
20 a different taxing body, and not including (i) an amount
21 equal to the amount of refunds made during the second
22 preceding calendar month by the Department on behalf of the
23 county and (ii) any amount that the Department determines is
24 necessary to offset any amounts that were payable to a
25 different taxing body but were erroneously paid to the
26 county. Within 10 days after receipt by the Comptroller of
27 the disbursement certification to the counties provided for
28 in this Section to be given to the Comptroller by the
29 Department, the Comptroller shall cause the orders to be
30 drawn for the respective amounts in accordance with
31 directions contained in the certification.
32 In addition to the disbursement required by the preceding
33 paragraph, an allocation shall be made in March of each year
34 to each county that received more than $500,000 in
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1 disbursements under the preceding paragraph in the preceding
2 calendar year. The allocation shall be in an amount equal to
3 the average monthly distribution made to each such county
4 under the preceding paragraph during the preceding calendar
5 year (excluding the 2 months of highest receipts). The
6 distribution made in March of each year subsequent to the
7 year in which an allocation was made pursuant to this
8 paragraph and the preceding paragraph shall be reduced by the
9 amount allocated and disbursed under this paragraph in the
10 preceding calendar year. The Department shall prepare and
11 certify to the Comptroller for disbursement the allocations
12 made in accordance with this paragraph.
13 (d) For the purpose of determining the local
14 governmental unit whose tax is applicable, a retail sale by a
15 producer of coal or another mineral mined in Illinois is a
16 sale at retail at the place where the coal or other mineral
17 mined in Illinois is extracted from the earth. This
18 paragraph does not apply to coal or another mineral when it
19 is delivered or shipped by the seller to the purchaser at a
20 point outside Illinois so that the sale is exempt under the
21 United States Constitution as a sale in interstate or foreign
22 commerce.
23 (e) Nothing in this Section shall be construed to
24 authorize a county to impose a tax upon the privilege of
25 engaging in any business that under the Constitution of the
26 United States may not be made the subject of taxation by this
27 State.
28 (e-5) If a county imposes a tax under this Section, the
29 county board may, by ordinance, discontinue or lower the rate
30 of the tax. If the county board lowers the tax rate or
31 discontinues the tax, a referendum must be held in accordance
32 with subsection (a) of this Section in order to increase the
33 rate of the tax or to reimpose the discontinued tax.
34 (f) Beginning April 1, 1998, the results of any election
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1 authorizing a proposition to impose a tax under this Section
2 or effecting a change in the rate of tax, or any ordinance
3 lowering the rate or discontinuing the tax, shall be
4 certified by the county clerk and filed with the Illinois
5 Department of Revenue either (i) on or before the first day
6 of April, whereupon the Department shall proceed to
7 administer and enforce the tax as of the first day of July
8 next following the filing; or (ii) on or before the first day
9 of October, whereupon the Department shall proceed to
10 administer and enforce the tax as of the first day of January
11 next following the filing.
12 (g) When certifying the amount of a monthly disbursement
13 to a county under this Section, the Department shall increase
14 or decrease the amounts by an amount necessary to offset any
15 miscalculation of previous disbursements. The offset amount
16 shall be the amount erroneously disbursed within the previous
17 6 months from the time a miscalculation is discovered.
18 (h) This Section may be cited as the "Special County
19 Occupation Tax For Public Safety Law".
20 (i) For purposes of this Section, "public safety"
21 includes but is not limited to fire fighting, police,
22 medical, ambulance, or other emergency services.
23 (Source: P.A. 89-107, eff. 1-1-96; 89-718, eff. 3-7-97;
24 90-190, eff. 7-24-97; 90-267, eff. 7-30-97; 90-552, eff.
25 12-12-97; 90-562, eff. 12-16-97; 90-655, eff. 7-30-98;
26 90-689, eff. 7-31-98.)
27 Section 5. The Illinois Municipal Code is amended by
28 changing Sections 8-11-1, 8-11-1.3, and 8-11-1.6 as follows:
29 (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
30 Sec. 8-11-1. Home Rule Municipal Retailers' Occupation
31 Tax Act. The corporate authorities of a home rule
32 municipality may impose a tax upon all persons engaged in the
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1 business of selling tangible personal property, other than an
2 item of tangible personal property titled or registered with
3 an agency of this State's government, at retail in the
4 municipality on the gross receipts from these sales made in
5 the course of such business. If imposed, the tax shall only
6 be imposed in 1/4% increments. On and after September 1,
7 1991, this additional tax may not be imposed on the sales of
8 food for human consumption that is to be consumed off the
9 premises where it is sold (other than alcoholic beverages,
10 soft drinks and food that has been prepared for immediate
11 consumption) and prescription and nonprescription medicines,
12 drugs, medical appliances and insulin, urine testing
13 materials, syringes and needles used by diabetics. The tax
14 imposed by a home rule municipality under this Section and
15 all civil penalties that may be assessed as an incident of
16 the tax shall be collected and enforced by the State
17 Department of Revenue. The certificate of registration that
18 is issued by the Department to a retailer under the
19 Retailers' Occupation Tax Act shall permit the retailer to
20 engage in a business that is taxable under any ordinance or
21 resolution enacted pursuant to this Section without
22 registering separately with the Department under such
23 ordinance or resolution or under this Section. The
24 Department shall have full power to administer and enforce
25 this Section; to collect all taxes and penalties due
26 hereunder; to dispose of taxes and penalties so collected in
27 the manner hereinafter provided; and to determine all rights
28 to credit memoranda arising on account of the erroneous
29 payment of tax or penalty hereunder. In the administration
30 of, and compliance with, this Section the Department and
31 persons who are subject to this Section shall have the same
32 rights, remedies, privileges, immunities, powers and duties,
33 and be subject to the same conditions, restrictions,
34 limitations, penalties and definitions of terms, and employ
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1 the same modes of procedure, as are prescribed in Sections 1,
2 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in
3 respect to all provisions therein other than the State rate
4 of tax), 2c, 3 (except as to the disposition of taxes and
5 penalties collected), 3a, 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
6 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13
7 of the Retailers' Occupation Tax Act and Section 3-7 of the
8 Uniform Penalty and Interest Act, as fully as if those
9 provisions were set forth herein.
10 No tax may be imposed by a home rule municipality under
11 this Section unless the municipality also imposes a tax at
12 the same rate under Section 8-11-5 of this Act.
13 Persons subject to any tax imposed under the authority
14 granted in this Section may reimburse themselves for their
15 seller's tax liability hereunder by separately stating that
16 tax as an additional charge, which charge may be stated in
17 combination, in a single amount, with State tax which sellers
18 are required to collect under the Use Tax Act, pursuant to
19 such bracket schedules as the Department may prescribe.
20 Whenever the Department determines that a refund should
21 be made under this Section to a claimant instead of issuing a
22 credit memorandum, the Department shall notify the State
23 Comptroller, who shall cause the order to be drawn for the
24 amount specified and to the person named in the notification
25 from the Department. The refund shall be paid by the State
26 Treasurer out of the home rule municipal retailers'
27 occupation tax fund.
28 The Department shall immediately pay over to the State
29 Treasurer, ex officio, as trustee, all taxes and penalties
30 collected hereunder. On or before the 25th day of each
31 calendar month, the Department shall prepare and certify to
32 the Comptroller the disbursement of stated sums of money to
33 named municipalities, the municipalities to be those from
34 which retailers have paid taxes or penalties hereunder to the
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1 Department during the second preceding calendar month. The
2 amount to be paid to each municipality shall be the amount
3 (not including credit memoranda) collected hereunder during
4 the second preceding calendar month by the Department plus an
5 amount the Department determines is necessary to offset any
6 amounts that were erroneously paid to a different taxing
7 body, and not including an amount equal to the amount of
8 refunds made during the second preceding calendar month by
9 the Department on behalf of such municipality, and not
10 including any amount that the Department determines is
11 necessary to offset any amounts that were payable to a
12 different taxing body but were erroneously paid to the
13 municipality. Within 10 days after receipt by the Comptroller
14 of the disbursement certification to the municipalities
15 provided for in this Section to be given to the Comptroller
16 by the Department, the Comptroller shall cause the orders to
17 be drawn for the respective amounts in accordance with the
18 directions contained in the certification.
19 In addition to the disbursement required by the preceding
20 paragraph and in order to mitigate delays caused by
21 distribution procedures, an allocation shall, if requested,
22 be made within 10 days after January 14, 1991, and in
23 November of 1991 and each year thereafter, to each
24 municipality that received more than $500,000 during the
25 preceding fiscal year, (July 1 through June 30) whether
26 collected by the municipality or disbursed by the Department
27 as required by this Section. Within 10 days after January 14,
28 1991, participating municipalities shall notify the
29 Department in writing of their intent to participate. In
30 addition, for the initial distribution, participating
31 municipalities shall certify to the Department the amounts
32 collected by the municipality for each month under its home
33 rule occupation and service occupation tax during the period
34 July 1, 1989 through June 30, 1990. The allocation within 10
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1 days after January 14, 1991, shall be in an amount equal to
2 the monthly average of these amounts, excluding the 2 months
3 of highest receipts. The monthly average for the period of
4 July 1, 1990 through June 30, 1991 will be determined as
5 follows: the amounts collected by the municipality under its
6 home rule occupation and service occupation tax during the
7 period of July 1, 1990 through September 30, 1990, plus
8 amounts collected by the Department and paid to such
9 municipality through June 30, 1991, excluding the 2 months of
10 highest receipts. The monthly average for each subsequent
11 period of July 1 through June 30 shall be an amount equal to
12 the monthly distribution made to each such municipality under
13 the preceding paragraph during this period, excluding the 2
14 months of highest receipts. The distribution made in
15 November 1991 and each year thereafter under this paragraph
16 and the preceding paragraph shall be reduced by the amount
17 allocated and disbursed under this paragraph in the preceding
18 period of July 1 through June 30. The Department shall
19 prepare and certify to the Comptroller for disbursement the
20 allocations made in accordance with this paragraph.
21 For the purpose of determining the local governmental
22 unit whose tax is applicable, a retail sale by a producer of
23 coal or other mineral mined in Illinois is a sale at retail
24 at the place where the coal or other mineral mined in
25 Illinois is extracted from the earth. This paragraph does
26 not apply to coal or other mineral when it is delivered or
27 shipped by the seller to the purchaser at a point outside
28 Illinois so that the sale is exempt under the United States
29 Constitution as a sale in interstate or foreign commerce.
30 Nothing in this Section shall be construed to authorize a
31 municipality to impose a tax upon the privilege of engaging
32 in any business which under the Constitution of the United
33 States may not be made the subject of taxation by this State.
34 An ordinance or resolution imposing or discontinuing a
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1 tax hereunder or effecting a change in the rate thereof shall
2 be adopted and a certified copy thereof filed with the
3 Department on or before the first day of June, whereupon the
4 Department shall proceed to administer and enforce this
5 Section as of the first day of September next following the
6 adoption and filing. Beginning January 1, 1992, an ordinance
7 or resolution imposing or discontinuing the tax hereunder or
8 effecting a change in the rate thereof shall be adopted and a
9 certified copy thereof filed with the Department on or before
10 the first day of July, whereupon the Department shall proceed
11 to administer and enforce this Section as of the first day of
12 October next following such adoption and filing. Beginning
13 January 1, 1993, an ordinance or resolution imposing or
14 discontinuing the tax hereunder or effecting a change in the
15 rate thereof shall be adopted and a certified copy thereof
16 filed with the Department on or before the first day of
17 October, whereupon the Department shall proceed to administer
18 and enforce this Section as of the first day of January next
19 following the adoption and filing. However, a municipality
20 located in a county with a population in excess of 3,000,000
21 that elected to become a home rule unit at the general
22 primary election in 1994 may adopt an ordinance or resolution
23 imposing the tax under this Section and file a certified copy
24 of the ordinance or resolution with the Department on or
25 before July 1, 1994. The Department shall then proceed to
26 administer and enforce this Section as of October 1, 1994.
27 Beginning April 1, 1998, an ordinance or resolution imposing
28 or discontinuing the tax hereunder or effecting a change in
29 the rate thereof shall either (i) be adopted and a certified
30 copy thereof filed with the Department on or before the first
31 day of April, whereupon the Department shall proceed to
32 administer and enforce this Section as of the first day of
33 July next following the adoption and filing; or (ii) be
34 adopted and a certified copy thereof filed with the
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1 Department on or before the first day of October, whereupon
2 the Department shall proceed to administer and enforce this
3 Section as of the first day of January next following the
4 adoption and filing.
5 When certifying the amount of a monthly disbursement to a
6 municipality under this Section, the Department shall
7 increase or decrease the amount by an amount necessary to
8 offset any misallocation of previous disbursements. The
9 offset amount shall be the amount erroneously disbursed
10 within the previous 6 months from the time a misallocation is
11 discovered.
12 Any unobligated balance remaining in the Municipal
13 Retailers' Occupation Tax Fund on December 31, 1989, which
14 fund was abolished by Public Act 85-1135, and all receipts of
15 municipal tax as a result of audits of liability periods
16 prior to January 1, 1990, shall be paid into the Local
17 Government Tax Fund for distribution as provided by this
18 Section prior to the enactment of Public Act 85-1135. All
19 receipts of municipal tax as a result of an assessment not
20 arising from an audit, for liability periods prior to January
21 1, 1990, shall be paid into the Local Government Tax Fund for
22 distribution before July 1, 1990, as provided by this Section
23 prior to the enactment of Public Act 85-1135; and on and
24 after July 1, 1990, all such receipts shall be distributed as
25 provided in Section 6z-18 of the State Finance Act.
26 As used in this Section, "municipal" and "municipality"
27 means a city, village or incorporated town, including an
28 incorporated town that has superseded a civil township.
29 This Section shall be known and may be cited as the Home
30 Rule Municipal Retailers' Occupation Tax Act.
31 (Source: P.A. 90-689, eff. 7-31-98.)
32 (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
33 Sec. 8-11-1.3. The corporate authorities of a non-home
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1 rule municipality with more than 130,000 but less than
2 2,000,000 inhabitants may impose a tax upon all persons
3 engaged in the business of selling tangible personal
4 property, other than on an item of tangible personal property
5 which is titled and registered by an agency of this State's
6 Government, at retail in the municipality at the rate of 1/2
7 of 1% for expenditure on public infrastructure as defined in
8 Section 8-11-1.2 if approved by referendum as provided in
9 Section 8-11-1.1, of the gross receipts from such sales made
10 in the course of such business. The tax imposed by a
11 municipality pursuant to this Section and all civil penalties
12 that may be assessed as an incident thereof shall be
13 collected and enforced by the State Department of Revenue.
14 The certificate of registration which is issued by the
15 Department to a retailer under the Retailers' Occupation Tax
16 Act shall permit such retailer to engage in a business which
17 is taxable under any ordinance or resolution enacted pursuant
18 to this Section without registering separately with the
19 Department under such ordinance or resolution or under this
20 Section. The Department shall have full power to administer
21 and enforce this Section; to collect all taxes and penalties
22 due hereunder; to dispose of taxes and penalties so collected
23 in the manner hereinafter provided, and to determine all
24 rights to credit memoranda, arising on account of the
25 erroneous payment of tax or penalty hereunder. In the
26 administration of, and compliance with, this Section, the
27 Department and persons who are subject to this Section shall
28 have the same rights, remedies, privileges, immunities,
29 powers and duties, and be subject to the same conditions,
30 restrictions, limitations, penalties and definitions of
31 terms, and employ the same modes of procedure, as are
32 prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
33 through 2-65 (in respect to all provisions therein other than
34 the State rate of tax), 2c, 3 (except as to the disposition
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1 of taxes and penalties collected), 3a, 4, 5, 5a, 5b, 5c, 5d,
2 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10,
3 11, 12 and 13 of the Retailers' Occupation Tax Act and
4 Section 3-7 of the Uniform Penalty and Interest Act as fully
5 as if those provisions were set forth herein.
6 Persons subject to any tax imposed pursuant to the
7 authority granted in this Section may reimburse themselves
8 for their seller's tax liability hereunder by separately
9 stating such tax as an additional charge, which charge may be
10 stated in combination, in a single amount, with State tax
11 which sellers are required to collect under the Use Tax Act,
12 pursuant to such bracket schedules as the Department may
13 prescribe.
14 Whenever the Department determines that a refund should
15 be made under this Section to a claimant instead of issuing a
16 credit memorandum, the Department shall notify the State
17 Comptroller, who shall cause the order to be drawn for the
18 amount specified, and to the person named, in such
19 notification from the Department. Such refund shall be paid
20 by the State Treasurer out of the non-home rule municipal
21 retailers' occupation tax fund.
22 The Department shall forthwith pay over to the State
23 Treasurer, ex officio, as trustee, all taxes and penalties
24 collected hereunder. On or before the 25th day of each
25 calendar month, the Department shall prepare and certify to
26 the Comptroller the disbursement of stated sums of money to
27 named municipalities, the municipalities to be those from
28 which retailers have paid taxes or penalties hereunder to the
29 Department during the second preceding calendar month. The
30 amount to be paid to each municipality shall be the amount
31 (not including credit memoranda) collected hereunder during
32 the second preceding calendar month by the Department plus an
33 amount the Department determines is necessary to offset any
34 amounts which were erroneously paid to a different taxing
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1 body, and not including an amount equal to the amount of
2 refunds made during the second preceding calendar month by
3 the Department on behalf of such municipality, and not
4 including any amount which the Department determines is
5 necessary to offset any amounts which were payable to a
6 different taxing body but were erroneously paid to the
7 municipality. Within 10 days after receipt, by the
8 Comptroller, of the disbursement certification to the
9 municipalities, provided for in this Section to be given to
10 the Comptroller by the Department, the Comptroller shall
11 cause the orders to be drawn for the respective amounts in
12 accordance with the directions contained in such
13 certification.
14 For the purpose of determining the local governmental
15 unit whose tax is applicable, a retail sale, by a producer of
16 coal or other mineral mined in Illinois, is a sale at retail
17 at the place where the coal or other mineral mined in
18 Illinois is extracted from the earth. This paragraph does
19 not apply to coal or other mineral when it is delivered or
20 shipped by the seller to the purchaser at a point outside
21 Illinois so that the sale is exempt under the Federal
22 Constitution as a sale in interstate or foreign commerce.
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 When certifying the amount of a monthly disbursement to a
28 municipality under this Section, the Department shall
29 increase or decrease such amount by an amount necessary to
30 offset any misallocation of previous disbursements. The
31 offset amount shall be the amount erroneously disbursed
32 within the previous 6 months from the time a misallocation is
33 discovered.
34 As used in this Section, "municipal" and "municipality"
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1 means a city, village or incorporated town, including an
2 incorporated town which has superseded a civil township.
3 This Section shall be known and may be cited as the
4 "Non-Home Rule Municipal Retailers' Occupation Tax Act".
5 (Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
6 (65 ILCS 5/8-11-1.6)
7 Sec. 8-11-1.6. Non-home rule municipal retailers
8 occupation tax; municipalities between 20,000 and 25,000. The
9 corporate authorities of a non-home rule municipality with a
10 population of more than 20,000 but less than 25,000 that has,
11 prior to January 1, 1987, established a Redevelopment Project
12 Area that has been certified as a State Sales Tax Boundary
13 and has issued bonds or otherwise incurred indebtedness to
14 pay for costs in excess of $5,000,000, which is secured in
15 part by a tax increment allocation fund, in accordance with
16 the provisions of Division 11-74.4 of this Code may, by
17 passage of an ordinance, impose a tax upon all persons
18 engaged in the business of selling tangible personal
19 property, other than on an item of tangible personal property
20 that is titled and registered by an agency of this State's
21 Government, at retail in the municipality. This tax may not
22 be imposed on the sales of food for human consumption that is
23 to be consumed off the premises where it is sold (other than
24 alcoholic beverages, soft drinks, and food that has been
25 prepared for immediate consumption) and prescription and
26 nonprescription medicines, drugs, medical appliances and
27 insulin, urine testing materials, syringes, and needles used
28 by diabetics. If imposed, the tax shall only be imposed in
29 .25% increments of the gross receipts from such sales made in
30 the course of business. Any tax imposed by a municipality
31 under this Sec. and all civil penalties that may be assessed
32 as an incident thereof shall be collected and enforced by the
33 State Department of Revenue. An ordinance imposing a tax
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1 hereunder or effecting a change in the rate thereof shall 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 such
6 adoption and filing. The certificate of registration that is
7 issued by the Department to a retailer under the Retailers'
8 Occupation Tax Act shall permit the retailer to engage in a
9 business that is taxable under any ordinance or resolution
10 enacted under this Section without registering separately
11 with the Department under the ordinance or resolution or
12 under this Section. The Department shall have full power to
13 administer and enforce this Section, to collect all taxes and
14 penalties due hereunder, to dispose of taxes and penalties so
15 collected in the manner hereinafter provided, and to
16 determine all rights to credit memoranda, arising on account
17 of the erroneous payment of tax or penalty hereunder. In the
18 administration of, and compliance with this Section, the
19 Department and persons who are subject to this Section shall
20 have the same rights, remedies, privileges, immunities,
21 powers, and duties, and be subject to the same conditions,
22 restrictions, limitations, penalties, and definitions of
23 terms, and employ the same modes of procedure, as are
24 prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
25 through 2-65 (in respect to all provisions therein other than
26 the State rate of tax), 2c, 3 (except as to the disposition
27 of taxes and penalties collected), 3a, 4, 5, 5a, 5b, 5c, 5d,
28 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10,
29 11, 12 and 13 of the Retailers' Occupation Tax Act and
30 Section 3-7 of the Uniform Penalty and Interest Act as fully
31 as if those provisions were set forth herein.
32 A tax may not be imposed by a municipality under this
33 Section unless the municipality also imposes a tax at the
34 same rate under Section 8-11-1.7 of this Act.
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1 Persons subject to any tax imposed under the authority
2 granted in this Section, may reimburse themselves for their
3 seller's tax liability hereunder by separately stating the
4 tax as an additional charge, which charge may be stated in
5 combination, in a single amount, with State tax which sellers
6 are required to collect under the Use Tax Act, pursuant to
7 such bracket schedules as the Department may prescribe.
8 Whenever the Department determines that a refund should
9 be made under this Section to a claimant, instead of issuing
10 a credit memorandum, the Department shall notify the State
11 Comptroller, who shall cause the order to be drawn for the
12 amount specified, and to the person named in the notification
13 from the Department. The refund shall be paid by the State
14 Treasurer out of the Non-Home Rule Municipal Retailers'
15 Occupation Tax Fund, which is hereby created.
16 The Department shall forthwith pay over to the State
17 Treasurer, ex officio, as trustee, all taxes and penalties
18 collected hereunder. On or before the 25th day of each
19 calendar month, the Department shall prepare and certify to
20 the Comptroller the disbursement of stated sums of money to
21 named municipalities, the municipalities to be those from
22 which retailers have paid taxes or penalties hereunder to the
23 Department during the second preceding calendar month. The
24 amount to be paid to each municipality shall be the amount
25 (not including credit memoranda) collected hereunder during
26 the second preceding calendar month by the Department plus an
27 amount the Department determines is necessary to offset any
28 amounts that were erroneously paid to a different taxing
29 body, and not including an amount equal to the amount of
30 refunds made during the second preceding calendar month by
31 the Department on behalf of the municipality, and not
32 including any amount that the Department determines is
33 necessary to offset any amounts that were payable to a
34 different taxing body but were erroneously paid to the
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1 municipality. Within 10 days after receipt by the
2 Comptroller of the disbursement certification to the
3 municipalities provided for in this Section to be given to
4 the Comptroller by the Department, the Comptroller shall
5 cause the orders to be drawn for the respective amounts in
6 accordance with the directions contained in the
7 certification.
8 For the purpose of determining the local governmental
9 unit whose tax is applicable, a retail sale by a producer of
10 coal or other mineral mined in Illinois is a sale at retail
11 at the place where the coal or other mineral mined in
12 Illinois is extracted from the earth. This paragraph does
13 not apply to coal or other mineral when it is delivered or
14 shipped by the seller to the purchaser at a point outside
15 Illinois so that the sale is exempt under the federal
16 Constitution as a sale in interstate or foreign commerce.
17 Nothing in this Section shall be construed to authorize a
18 municipality to impose a tax upon the privilege of engaging
19 in any business which under the constitution of the United
20 States may not be made the subject of taxation by this State.
21 When certifying the amount of a monthly disbursement to a
22 municipality under this Section, the Department shall
23 increase or decrease the amount by an amount necessary to
24 offset any misallocation of previous disbursements. The
25 offset amount shall be the amount erroneously disbursed
26 within the previous 6 months from the time a misallocation is
27 discovered.
28 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 (Source: P.A. 88-334; 89-399, eff. 8-20-95.)
32 Section 40. The Civic Center Code is amended by changing
33 Section 245-12 as follows:
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1 (70 ILCS 200/245-12)
2 Sec. 245-12. Use and occupation taxes.
3 (a) The Authority may adopt a resolution that authorizes
4 a referendum on the question of whether the Authority shall
5 be authorized to impose a retailers' occupation tax, a
6 service occupation tax, and a use tax in one-quarter percent
7 increments at a rate not to exceed 1%. The Authority shall
8 certify the question to the proper election authorities who
9 shall submit the question to the voters of the metropolitan
10 area at the next regularly scheduled election in accordance
11 with the general election law. The question shall be in
12 substantially the following form:
13 "Shall the Salem Civic Center Authority be authorized to
14 impose a retailers' occupation tax, a service occupation
15 tax, and a use tax at the rate of (rate) for the sole
16 purpose of obtaining funds for the support, construction,
17 maintenance, or financing of a facility of the
18 Authority?"
19 Votes shall be recorded as "yes" or "no". If a majority
20 of all votes cast on the proposition are in favor of the
21 proposition, the Authority is authorized to impose the tax.
22 (b) The Authority shall impose the retailers' occupation
23 tax upon all persons engaged in the business of selling
24 tangible personal property at retail in the metropolitan
25 area, at the rate approved by referendum, on the gross
26 receipts from the sales made in the course of such business
27 within the metropolitan area. The tax imposed under this
28 Section and all civil penalties that may be assessed as an
29 incident thereof shall be collected and enforced by the
30 Department of Revenue. The Department has full power to
31 administer and enforce this Section; to collect all taxes and
32 penalties so collected in the manner provided in this
33 Section; and to determine all rights to credit memoranda
34 arising on account of the erroneous payment of tax or penalty
-56- LRB9105091PTpk
1 hereunder. In the administration of, and compliance with,
2 this Section, the Department and persons who are subject to
3 this Section shall (i) have the same rights, remedies,
4 privileges, immunities, powers and duties, (ii) be subject to
5 the same conditions, restrictions, limitations, penalties,
6 exclusions, exemptions, and definitions of terms, and (iii)
7 employ the same modes of procedure as are prescribed in
8 Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2,
9 2-5, 2-5.5, 2-10 (in respect to all provisions therein other
10 than the State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3
11 (except as to the disposition of taxes and penalties
12 collected and provisions related to quarter monthly
13 payments), 3a, 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k,
14 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
15 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
16 Penalty and Interest Act, as fully as if those provisions
17 were set forth in this subsection.
18 Persons subject to any tax imposed under this subsection
19 may reimburse themselves for their seller's tax liability by
20 separately stating the tax as an additional charge, which
21 charge may be stated in combination, in a single amount, with
22 State taxes that sellers are required to collect, in
23 accordance with such bracket schedules as the Department may
24 prescribe.
25 Whenever the Department determines that a refund should
26 be made under this subsection to a claimant instead of
27 issuing a credit memorandum, the Department shall notify the
28 State Comptroller, who shall cause the warrant to be drawn
29 for the amount specified, and to the person named, in the
30 notification from the Department. The refund shall be paid
31 by the State Treasurer out of the tax fund referenced under
32 paragraph (g) of this Section.
33 If a tax is imposed under this subsection (b), a tax
34 shall also be imposed at the same rate under subsections (c)
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1 and (d) of this Section.
2 For the purpose of determining whether a tax authorized
3 under this Section is applicable, a retail sale, by a
4 producer of coal or other mineral mined in Illinois, is a
5 sale at retail at the place where the coal or other mineral
6 mined in Illinois is extracted from the earth. This
7 paragraph does not apply to coal or other mineral when it is
8 delivered or shipped by the seller to the purchaser at a
9 point outside Illinois so that the sale is exempt under the
10 Federal Constitution as a sale in interstate or foreign
11 commerce.
12 Nothing in this Section shall be construed to authorize
13 the Authority 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 (c) If a tax has been imposed under subsection (b), a
17 service occupation tax shall also be imposed at the same rate
18 upon all persons engaged, in the metropolitan area, in the
19 business of making sales of service, who, as an incident to
20 making those sales of service, transfer tangible personal
21 property within the metropolitan area as an incident to a
22 sale of service. The tax imposed under this subsection and
23 all civil penalties that may be assessed as an incident
24 thereof shall be collected and enforced by the Department of
25 Revenue. The Department has full power to administer and
26 enforce this paragraph; to collect all taxes and penalties
27 due hereunder; to dispose of taxes and penalties so collected
28 in the manner hereinafter provided; and to determine all
29 rights to credit memoranda arising on account of the
30 erroneous payment of tax or penalty hereunder. In the
31 administration of, and compliance with this paragraph, the
32 Department and persons who are subject to this paragraph
33 shall (i) have the same rights, remedies, privileges,
34 immunities, powers, and duties, (ii) be subject to the same
-58- LRB9105091PTpk
1 conditions, restrictions, limitations, penalties, exclusions,
2 exemptions, and definitions of terms, and (iii) employ the
3 same modes of procedure as are prescribed in Sections 2
4 (except that the reference to State in the definition of
5 supplier maintaining a place of business in this State shall
6 mean the metropolitan area), 2a, 2b, 3 through 3-55 (in
7 respect to all provisions therein other than the State rate
8 of tax), 4 (except that the reference to the State shall be
9 to the Authority), 5, 7, 8 (except that the jurisdiction to
10 which the tax shall be a debt to the extent indicated in that
11 Section 8 shall be the Authority), 9 (except as to the
12 disposition of taxes and penalties collected, and except that
13 the returned merchandise credit for this tax may not be taken
14 against any State tax), 11, 12 (except the reference therein
15 to Section 2b of the Retailers' Occupation Tax Act), 13
16 (except that any reference to the State shall mean the
17 Authority), 15, 16, 17, 18, 19 and 20 of the Service
18 Occupation Tax Act and Section 3-7 of the Uniform Penalty and
19 Interest Act, as fully as if those provisions were set forth
20 herein.
21 Persons subject to any tax imposed under the authority
22 granted in this subsection may reimburse themselves for their
23 serviceman's tax liability by separately stating the tax as
24 an additional charge, which charge may be stated in
25 combination, in a single amount, with State tax that
26 servicemen are authorized to collect under the Service Use
27 Tax Act, in accordance with such bracket schedules as the
28 Department may prescribe.
29 Whenever the Department determines that a refund should
30 be made under this subsection to a claimant instead of
31 issuing a credit memorandum, the Department shall notify the
32 State Comptroller, who shall cause the warrant to be drawn
33 for the amount specified, and to the person named, in the
34 notification from the Department. The refund shall be paid
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1 by the State Treasurer out of the tax fund referenced under
2 paragraph (g) of this Section.
3 Nothing in this paragraph shall be construed to authorize
4 the Authority to impose a tax upon the privilege of engaging
5 in any business which under the Constitution of the United
6 States may not be made the subject of taxation by the State.
7 (d) If a tax has been imposed under subsection (b), a
8 use tax shall also be imposed at the same rate upon the
9 privilege of using, in the metropolitan area, any item of
10 tangible personal property that is purchased outside the
11 metropolitan area at retail from a retailer, and that is
12 titled or registered at a location within the metropolitan
13 area with an agency of this State's government. "Selling
14 price" is defined as in the Use Tax Act. The tax shall be
15 collected from persons whose Illinois address for titling or
16 registration purposes is given as being in the metropolitan
17 area. The tax shall be collected by the Department of
18 Revenue for the Authority. The tax must be paid to the State,
19 or an exemption determination must be obtained from the
20 Department of Revenue, before the title or certificate of
21 registration for the property may be issued. The tax or
22 proof of exemption may be transmitted to the Department by
23 way of the State agency with which, or the State officer with
24 whom, the tangible personal property must be titled or
25 registered if the Department and the State agency or State
26 officer determine that this procedure will expedite the
27 processing of applications for title or registration.
28 The Department has full power to administer and enforce
29 this paragraph; to collect all taxes, penalties and interest
30 due hereunder; to dispose of taxes, penalties and interest so
31 collected in the manner hereinafter provided; and to
32 determine all rights to credit memoranda or refunds arising
33 on account of the erroneous payment of tax, penalty or
34 interest hereunder. In the administration of, and compliance
-60- LRB9105091PTpk
1 with, this subsection, the Department and persons who are
2 subject to this paragraph shall (i) have the same rights,
3 remedies, privileges, immunities, powers, and duties, (ii) be
4 subject to the same conditions, restrictions, limitations,
5 penalties, exclusions, exemptions, and definitions of terms,
6 and (iii) employ the same modes of procedure as are
7 prescribed in Sections 2 (except the definition of "retailer
8 maintaining a place of business in this State"), 3, 3-5,
9 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, 4, 6, 7, 8 (except
10 that the jurisdiction to which the tax shall be a debt to the
11 extent indicated in that Section 8 shall be the Authority), 9
12 (except provisions relating to quarter monthly payments), 10,
13 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22 of the Use
14 Tax Act and Section 3-7 of the Uniform Penalty and Interest
15 Act, that are not inconsistent with this paragraph, as fully
16 as if those provisions were set forth herein.
17 Whenever the Department determines that a refund should
18 be made under this subsection to a claimant instead of
19 issuing a credit memorandum, the Department shall notify the
20 State Comptroller, who shall cause the order to be drawn for
21 the amount specified, and to the person named, in the
22 notification from the Department. The refund shall be paid by
23 the State Treasurer out of the tax fund referenced under
24 paragraph (g) of this Section.
25 (e) 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), (c), or (d)
30 of this Section and no additional registration shall be
31 required. A certificate issued under the Use Tax Act or the
32 Service Use Tax Act shall be applicable with regard to any
33 tax imposed under paragraph (c) of this Section.
34 (f) The results of any election authorizing a
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1 proposition to impose a tax under this Section or effecting a
2 change in the rate of tax shall be certified by the proper
3 election authorities and filed with the Illinois Department
4 on or before the first day of April. In addition, an
5 ordinance imposing, discontinuing, or effecting a change in
6 the rate of tax under this Section shall be adopted and a
7 certified copy thereof filed with the Department on or before
8 the first day of April. After proper receipt of such
9 certifications, the Department shall proceed to administer
10 and enforce this Section as of the first day of July next
11 following such adoption and filing.
12 (g) The Department of Revenue shall, upon collecting any
13 taxes and penalties as provided in this Section, pay the
14 taxes and penalties over to the State Treasurer as trustee
15 for the Authority. The taxes and penalties shall be held in a
16 trust fund outside the State Treasury. On or before the 25th
17 day of each calendar month, the Department of Revenue shall
18 prepare and certify to the Comptroller of the State of
19 Illinois the amount to be paid to the Authority, which shall
20 be the balance in the fund, less any amount determined by the
21 Department to be necessary for the payment of refunds. Within
22 10 days after receipt by the Comptroller of the certification
23 of the amount to be paid to the Authority, the Comptroller
24 shall cause an order to be drawn for payment for the amount
25 in accordance with the directions contained in the
26 certification. Amounts received from the tax imposed under
27 this Section shall be used only for the support,
28 construction, maintenance, or financing of a facility of the
29 Authority.
30 (h) When certifying the amount of a monthly disbursement
31 to the Authority under this Section, the Department shall
32 increase or decrease the amounts by an amount necessary to
33 offset any miscalculation of previous disbursements. The
34 offset amount shall be the amount erroneously disbursed
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1 within the previous 6 months from the time a miscalculation
2 is discovered.
3 (i) This Section may be cited as the Salem Civic Center
4 Use and Occupation Tax Law.
5 (Source: P.A. 90-328, eff. 1-1-98.)
6 Section 45. The Local Mass Transit District Act is
7 amended by changing Section 5.01 as follows:
8 (70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
9 Sec. 5.01. Metro East Mass Transit District; use and
10 occupation taxes.
11 (a) The Board of Trustees of any Metro East Mass Transit
12 District may, by ordinance adopted with the concurrence of
13 two-thirds of the then trustees, impose throughout the
14 District any or all of the taxes and fees provided in this
15 Section. All taxes and fees imposed under this Section shall
16 be used only for public mass transportation systems, and the
17 amount used to provide mass transit service to unserved areas
18 of the District shall be in the same proportion to the total
19 proceeds as the number of persons residing in the unserved
20 areas is to the total population of the District. Except as
21 otherwise provided in this Act, taxes imposed under this
22 Section and civil penalties imposed incident thereto shall be
23 collected and enforced by the State Department of Revenue.
24 The Department shall have the power to administer and enforce
25 the taxes and to determine all rights for refunds for
26 erroneous payments of the taxes.
27 (b) The Board may impose a Metro East Mass Transit
28 District Retailers' Occupation Tax upon all persons engaged
29 in the business of selling tangible personal property at
30 retail in the district at a rate of 1/4 of 1%, or as
31 authorized under subsection (d-5) of this Section, of the
32 gross receipts from the sales made in the course of such
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1 business within the district. The tax imposed under this
2 Section and all civil penalties that may be assessed as an
3 incident thereof shall be collected and enforced by the State
4 Department of Revenue. The Department shall have full power
5 to administer and enforce this Section; to collect all taxes
6 and penalties so collected in the manner hereinafter
7 provided; and to determine all rights to credit memoranda
8 arising on account of the erroneous payment of tax or penalty
9 hereunder. In the administration of, and compliance with,
10 this Section, the Department and persons who are subject to
11 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,
14 exclusions, exemptions and definitions of terms and employ
15 the same modes of procedure, as are prescribed in Sections 1,
16 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect
17 to all provisions therein other than the State rate of tax),
18 2c, 3 (except as to the disposition of taxes and penalties
19 collected), 3a, 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
20 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the
21 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
22 Penalty and Interest Act, as fully as if those provisions
23 were set forth herein.
24 Persons subject to any tax imposed under the Section may
25 reimburse themselves for their seller's tax liability
26 hereunder by separately stating the tax as an additional
27 charge, which charge may be stated in combination, in a
28 single amount, with State taxes that sellers are required to
29 collect under the Use Tax Act, in accordance with such
30 bracket schedules as the Department may prescribe.
31 Whenever the Department determines that a refund should
32 be made under this Section to a claimant instead of issuing a
33 credit memorandum, the Department shall notify the State
34 Comptroller, who shall cause the warrant to be drawn for the
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1 amount specified, and to the person named, in the
2 notification from the Department. The refund shall be paid
3 by the State Treasurer out of the Metro East Mass Transit
4 District tax fund established under paragraph (g) of this
5 Section.
6 If a tax is imposed under this subsection (b), a tax
7 shall also be imposed under subsections (c) and (d) of this
8 Section.
9 For the purpose of determining whether a tax authorized
10 under this Section is applicable, a retail sale, by a
11 producer of coal or other mineral mined in Illinois, is a
12 sale at retail at the place where the coal or other mineral
13 mined in Illinois is extracted from the earth. This
14 paragraph does not apply to coal or other mineral when it is
15 delivered or shipped by the seller to the purchaser at a
16 point outside Illinois so that the sale is exempt under the
17 Federal Constitution as a sale in interstate or foreign
18 commerce.
19 Nothing in this Section shall be construed to authorize
20 the Metro East Mass Transit District to impose a tax upon the
21 privilege of engaging in any business which under the
22 Constitution of the United States may not be made the subject
23 of taxation by this State.
24 (c) If a tax has been imposed under subsection (b), a
25 Metro East Mass Transit District Service Occupation Tax shall
26 also be imposed upon all persons engaged, in the district, in
27 the business of making sales of service, who, as an incident
28 to making those sales of service, transfer tangible personal
29 property within the District, either in the form of tangible
30 personal property or in the form of real estate as an
31 incident to a sale of service. The tax rate shall be 1/4%, or
32 as authorized under subsection (d-5) of this Section, of the
33 selling price of tangible personal property so transferred
34 within the district. The tax imposed under this paragraph
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1 and all civil penalties that may be assessed as an incident
2 thereof shall be collected and enforced by the State
3 Department of Revenue. The Department shall have full power
4 to administer and enforce this paragraph; to collect all
5 taxes and penalties due hereunder; to dispose of taxes and
6 penalties so collected in the manner hereinafter provided;
7 and to determine all rights to credit memoranda arising on
8 account of the erroneous payment of tax or penalty hereunder.
9 In the administration of, and compliance with this paragraph,
10 the Department and persons who are subject to this paragraph
11 shall have the same rights, remedies, privileges, immunities,
12 powers and duties, and be subject to the same conditions,
13 restrictions, limitations, penalties, exclusions, exemptions
14 and definitions of terms and employ the same modes of
15 procedure as are prescribed in Sections 1a-1, 2 (except that
16 the reference to State in the definition of supplier
17 maintaining a place of business in this State shall mean the
18 Authority), 2a, 3 through 3-50 (in respect to all provisions
19 therein other than the State rate of tax), 4 (except that the
20 reference to the State shall be to the Authority), 5, 7, 8
21 (except that the jurisdiction to which the tax shall be a
22 debt to the extent indicated in that Section 8 shall be the
23 District), 9 (except as to the disposition of taxes and
24 penalties collected, and except that the returned merchandise
25 credit for this tax may not be taken against any State tax),
26 10, 11, 12 (except the reference therein to Section 2b of the
27 Retailers' Occupation Tax Act), 13 (except that any reference
28 to the State shall mean the District), the first paragraph of
29 Section 15, 16, 17, 18, 19 and 20 of the Service Occupation
30 Tax Act and Section 3-7 of the Uniform Penalty and Interest
31 Act, as fully as if those provisions were set forth herein.
32 Persons subject to any tax imposed under the authority
33 granted in this paragraph may reimburse themselves for their
34 serviceman's tax liability hereunder by separately stating
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1 the tax as an additional charge, which charge may be stated
2 in combination, in a single amount, with State tax that
3 servicemen are authorized to collect under the Service Use
4 Tax Act, in accordance with such bracket schedules as the
5 Department may prescribe.
6 Whenever the Department determines that a refund should
7 be made under this paragraph to a claimant instead of issuing
8 a credit memorandum, the Department shall notify the State
9 Comptroller, who shall cause the warrant to be drawn for the
10 amount specified, and to the person named, in the
11 notification from the Department. The refund shall be paid
12 by the State Treasurer out of the Metro East Mass Transit
13 District tax fund established under paragraph (g) of this
14 Section.
15 Nothing in this paragraph shall be construed to authorize
16 the District to impose a tax upon the privilege of engaging
17 in any business which under the Constitution of the United
18 States may not be made the subject of taxation by the State.
19 (d) If a tax has been imposed under subsection (b), a
20 Metro East Mass Transit District Use Tax shall also be
21 imposed upon the privilege of using, in the district, any
22 item of tangible personal property that is purchased outside
23 the district at retail from a retailer, and that is titled or
24 registered with an agency of this State's government, at a
25 rate of 1/4%, or as authorized under subsection (d-5) of this
26 Section, of the selling price of the tangible personal
27 property within the District, as "selling price" is defined
28 in the Use Tax Act. The tax shall be collected from persons
29 whose Illinois address for titling or registration purposes
30 is given as being in the District. The tax shall be
31 collected by the Department of Revenue for the Metro East
32 Mass Transit District. The tax must be paid to the State, or
33 an exemption determination must be obtained from the
34 Department of Revenue, before the title or certificate of
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1 registration for the property may be issued. The tax or
2 proof of exemption may be transmitted to the Department by
3 way of the State agency with which, or the State officer with
4 whom, the tangible personal property must be titled or
5 registered if the Department and the State agency or State
6 officer determine that this procedure will expedite the
7 processing of applications for title or registration.
8 The Department shall have full power to administer and
9 enforce this paragraph; to collect all taxes, penalties and
10 interest due hereunder; to dispose of taxes, penalties and
11 interest so collected in the manner hereinafter provided; and
12 to determine all rights to credit memoranda or refunds
13 arising on account of the erroneous payment of tax, penalty
14 or interest hereunder. In the administration of, and
15 compliance with, this paragraph, the Department and persons
16 who are subject to this paragraph shall have the same rights,
17 remedies, privileges, immunities, powers and duties, and be
18 subject to the same conditions, restrictions, limitations,
19 penalties, exclusions, exemptions and definitions of terms
20 and employ the same modes of procedure, as are prescribed in
21 Sections 2 (except the definition of "retailer maintaining a
22 place of business in this State"), 3 through 3-80 (except
23 provisions pertaining to the State rate of tax, and except
24 provisions concerning collection or refunding of the tax by
25 retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
26 pertaining to claims by retailers and except the last
27 paragraph concerning refunds), 20, 21 and 22 of the Use Tax
28 Act and Section 3-7 of the Uniform Penalty and Interest Act,
29 that are not inconsistent with this paragraph, as fully as if
30 those provisions were set forth herein.
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 order to be drawn for the
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1 amount specified, and to the person named, in the
2 notification from the Department. The refund shall be paid by
3 the State Treasurer out of the Metro East Mass Transit
4 District tax fund established under paragraph (g) of this
5 Section.
6 (d-5) The county board of any county participating in
7 the Metro East Mass Transit District may authorize, by
8 ordinance, a referendum on the question of whether the tax
9 rates for the Metro East Mass Transit District Retailers'
10 Occupation Tax, the Metro East Mass Transit District Service
11 Occupation Tax, and the Metro East Mass Transit District Use
12 Tax for the District should be increased from 0.25% to 0.75%.
13 Upon adopting the ordinance, the county board shall certify
14 the proposition to the proper election officials who shall
15 submit the proposition to the voters of the District at the
16 next election, in accordance with the general election law.
17 The proposition shall be in substantially the following
18 form:
19 Shall the tax rates for the Metro East Mass Transit
20 District Retailers' Occupation Tax, the Metro East Mass
21 Transit District Service Occupation Tax, and the Metro
22 East Mass Transit District Use Tax be increased from
23 0.25% to 0.75%?
24 The votes shall be recorded as "YES" or "NO". If a
25 majority of all votes cast on the proposition are for the
26 increase in the tax rates, the Metro East Mass Transit
27 District shall begin imposing the increased rates in the
28 District, and the Department of Revenue shall begin
29 collecting the increased amounts, as provided under this
30 Section. An ordinance imposing or discontinuing a tax
31 hereunder or effecting a change in the rate thereof shall be
32 adopted and a certified copy thereof filed with the
33 Department on or before the first day of October, whereupon
34 the Department shall proceed to administer and enforce this
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1 Section as of the first day of January next following the
2 adoption and filing.
3 If the voters have approved a referendum under this
4 subsection, before November 1, 1994, to increase the tax rate
5 under this subsection, the Metro East Mass Transit District
6 Board of Trustees may adopt by a majority vote an ordinance
7 at any time before January 1, 1995 that excludes from the
8 rate increase tangible personal property that is titled or
9 registered with an agency of this State's government. The
10 ordinance excluding titled or registered tangible personal
11 property from the rate increase must be filed with the
12 Department at least 15 days before its effective date. At any
13 time after adopting an ordinance excluding from the rate
14 increase tangible personal property that is titled or
15 registered with an agency of this State's government, the
16 Metro East Mass Transit District Board of Trustees may adopt
17 an ordinance applying the rate increase to that tangible
18 personal property. The ordinance shall be adopted, and a
19 certified copy of that ordinance shall be filed with the
20 Department, on or before October 1, whereupon the Department
21 shall proceed to administer and enforce the rate increase
22 against tangible personal property titled or registered with
23 an agency of this State's government as of the following
24 January 1. After December 31, 1995, any reimposed rate
25 increase in effect under this subsection shall no longer
26 apply to tangible personal property titled or registered with
27 an agency of this State's government. Beginning January 1,
28 1996, the Board of Trustees of any Metro East Mass Transit
29 District may never reimpose a previously excluded tax rate
30 increase on tangible personal property titled or registered
31 with an agency of this State's government.
32 (d-6) If the Board of Trustees of any Metro East Mass
33 Transit District has imposed a rate increase under subsection
34 (d-5) and filed an ordinance with the Department of Revenue
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1 excluding titled property from the higher rate, then that
2 Board may, by ordinance adopted with the concurrence of
3 two-thirds of the then trustees, impose throughout the
4 District a fee. The fee on the excluded property shall not
5 exceed $20 per retail transaction or an amount equal to the
6 amount of tax excluded, whichever is less, on tangible
7 personal property that is titled or registered with an agency
8 of this State's government. The Board of Trustees of any
9 Metro East Mass Transit District shall have full power to
10 administer and enforce this subsection and to determine all
11 rights to credit memoranda or refunds arising on account of
12 the erroneous payment of the fee hereunder. The Board shall
13 proceed to administer and enforce this subsection as of the
14 first day of the second month following the adoption of the
15 ordinance.
16 (d-7) If a fee has been imposed under subsection (d-6),
17 a fee shall also be imposed upon the privilege of using, in
18 the district, any item of tangible personal property that is
19 titled or registered with any agency of this State's
20 government, in an amount equal to the amount of the fee
21 imposed under subsection (d-6). The Board of Trustees of any
22 Metro East Mass Transit District shall have full power to
23 administer and enforce this subsection and to determine all
24 rights to credit memoranda or refunds arising on account of
25 the erroneous payment of the fee hereunder. The Board shall
26 proceed to administer and enforce this subsection
27 concurrently with the administration of the fee imposed under
28 subsection (d-6).
29 (d-8) No item of titled property shall be subject to
30 both the higher rate approved by referendum, as authorized
31 under subsection (d-5), and any fee imposed under subsection
32 (d-6) or (d-7).
33 (d-9) If fees have been imposed under subsections (d-6)
34 and (d-7), the Board shall forward a copy of the ordinance
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1 adopting such fees, which shall include all zip codes in
2 whole or in part within the boundaries of the district, to
3 the Secretary of State within thirty days. By the 25th of
4 each month, the Secretary of State shall subsequently provide
5 the Board with a list of identifiable retail transactions
6 subject to the .25% rate occurring within the zip codes which
7 are in whole or in part within the boundaries of the district
8 and a list of title applications for addresses within the
9 boundaries of the district for the previous month.
10 (d-10) In the event that a retailer fails to pay
11 applicable fees within 30 days of the date of the
12 transaction, a penalty shall be assessed at the rate of 25%
13 of the amount of fees. Interest on both late fees and
14 penalties shall be assessed at the rate of 1% per month. All
15 fees, penalties, and attorney fees shall constitute a lien on
16 the personal and real property of the retailer. The Board of
17 Trustees of any Metro East Transit District shall have full
18 power to administer and enforce this subsection.
19 (e) A certificate of registration issued by the State
20 Department of Revenue to a retailer under the Retailers'
21 Occupation Tax Act or under the Service Occupation Tax Act
22 shall permit the registrant to engage in a business that is
23 taxed under the tax imposed under paragraphs (b), (c) or (d)
24 of this Section and no additional registration shall be
25 required under the tax. A certificate issued under the Use
26 Tax Act or the Service Use Tax Act shall be applicable with
27 regard to any tax imposed under paragraph (c) of this
28 Section.
29 (f) The Board may impose a replacement vehicle tax of
30 $50 on any passenger car, as defined in Section 1-157 of the
31 Illinois Vehicle Code, purchased within the district area by
32 or on behalf of an insurance company to replace a passenger
33 car of an insured person in settlement of a total loss claim.
34 The tax imposed may not become effective before the first day
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1 of the month following the passage of the ordinance imposing
2 the tax and receipt of a certified copy of the ordinance by
3 the Department of Revenue. The Department of Revenue shall
4 collect the tax for the district in accordance with Sections
5 3-2002 and 3-2003 of the Illinois Vehicle Code.
6 The Department shall immediately pay over to the State
7 Treasurer, ex officio, as trustee, all taxes collected
8 hereunder. On or before the 25th day of each calendar month,
9 the Department shall prepare and certify to the Comptroller
10 the disbursement of stated sums of money to named districts,
11 the districts to be those from which retailers have paid
12 taxes or penalties hereunder to the Department during the
13 second preceding calendar month. The amount to be paid to
14 each district shall be the amount collected hereunder during
15 the second preceding calendar month by the Department, less
16 any amount determined by the Department to be necessary for
17 the payment of refunds. Within 10 days after receipt by the
18 Comptroller of the disbursement certification to the
19 districts, provided for in this Section to be given to the
20 Comptroller by the Department, the Comptroller shall cause
21 the orders to be drawn for the respective amounts in
22 accordance with the directions contained in the
23 certification.
24 (g) Any ordinance imposing or discontinuing any tax
25 under this Section shall be adopted and a certified copy
26 thereof filed with the Department on or before June 1,
27 whereupon the Department of Revenue shall proceed to
28 administer and enforce this Section on behalf of the Metro
29 East Mass Transit District as of September 1 next following
30 such adoption and filing. Beginning January 1, 1992, an
31 ordinance or resolution imposing or discontinuing the tax
32 hereunder shall be adopted and a certified copy thereof filed
33 with the Department on or before the first day of July,
34 whereupon the Department shall proceed to administer and
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1 enforce this Section as of the first day of October next
2 following such adoption and filing. Beginning January 1,
3 1993, except as provided in subsection (d-5) of this Section,
4 an ordinance or resolution imposing or discontinuing the tax
5 hereunder shall be adopted and a certified copy thereof filed
6 with the Department on or before the first day of October,
7 whereupon the Department shall proceed to administer and
8 enforce this Section as of the first day of January next
9 following such adoption and filing.
10 (h) 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 District. The taxes shall be held in a trust fund outside the
14 State Treasury. On or before the 25th day of each calendar
15 month, the State Department of Revenue shall prepare and
16 certify to the Comptroller of the State of Illinois the
17 amount to be paid to the District, 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. Within
20 10 days after receipt by the Comptroller of the certification
21 of the amount to be paid to the District, the Comptroller
22 shall cause an order to be drawn for payment for the amount
23 in accordance with the direction in the certification.
24 (Source: P.A. 88-115; 88-672, eff. 12-14-94; 89-436, eff.
25 1-1-96; 89-705, eff. 1-31-97.)
26 Section 50. The Regional Transportation Authority Act is
27 amended by changing Section 4.03 as follows:
28 (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
29 Sec. 4.03. Taxes.
30 (a) In order to carry out any of the powers or purposes
31 of the Authority, the Board may by ordinance adopted with the
32 concurrence of 9 of the then Directors, impose throughout the
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1 metropolitan region any or all of the taxes provided in this
2 Section. Except as otherwise provided in this Act, taxes
3 imposed under this Section and civil penalties imposed
4 incident thereto shall be collected and enforced by the State
5 Department of Revenue. The Department shall have the power to
6 administer and enforce the taxes and to determine all rights
7 for refunds for erroneous payments of the taxes.
8 (b) The Board may impose a public transportation tax
9 upon all persons engaged in the metropolitan region in the
10 business of selling at retail motor fuel for operation of
11 motor vehicles upon public highways. The tax shall be at a
12 rate not to exceed 5% of the gross receipts from the sales of
13 motor fuel in the course of the business. As used in this
14 Act, the term "motor fuel" shall have the same meaning as in
15 the Motor Fuel Tax Act. The Board may provide for details of
16 the tax. The provisions of any tax shall conform, as closely
17 as may be practicable, to the provisions of the Municipal
18 Retailers Occupation Tax Act, including without limitation,
19 conformity to penalties with respect to the tax imposed and
20 as to the powers of the State Department of Revenue to
21 promulgate and enforce rules and regulations relating to the
22 administration and enforcement of the provisions of the tax
23 imposed, except that reference in the Act to any municipality
24 shall refer to the Authority and the tax shall be imposed
25 only with regard to receipts from sales of motor fuel in the
26 metropolitan region, at rates as limited by this Section.
27 (c) In connection with the tax imposed under paragraph
28 (b) of this Section the Board may impose a tax upon the
29 privilege of using in the metropolitan region motor fuel for
30 the operation of a motor vehicle upon public highways, the
31 tax to be at a rate not in excess of the rate of tax imposed
32 under paragraph (b) of this Section. The Board may provide
33 for details of the tax.
34 (d) The Board may impose a motor vehicle parking tax
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1 upon the privilege of parking motor vehicles at off-street
2 parking facilities in the metropolitan region at which a fee
3 is charged, and may provide for reasonable classifications in
4 and exemptions to the tax, for administration and enforcement
5 thereof and for civil penalties and refunds thereunder and
6 may provide criminal penalties thereunder, the maximum
7 penalties not to exceed the maximum criminal penalties
8 provided in the Retailers' Occupation Tax Act. The Authority
9 may collect and enforce the tax itself or by contract with
10 any unit of local government. The State Department of
11 Revenue shall have no responsibility for the collection and
12 enforcement unless the Department agrees with the Authority
13 to undertake the collection and enforcement. As used in this
14 paragraph, the term "parking facility" means a parking area
15 or structure having parking spaces for more than 2 vehicles
16 at which motor vehicles are permitted to park in return for
17 an hourly, daily, or other periodic fee, whether publicly or
18 privately owned, but does not include parking spaces on a
19 public street, the use of which is regulated by parking
20 meters.
21 (e) The Board may impose a Regional Transportation
22 Authority Retailers' Occupation Tax upon all persons engaged
23 in the business of selling tangible personal property at
24 retail in the metropolitan region. In Cook County the tax
25 rate shall be 1% of the gross receipts from sales of food for
26 human consumption that is to be consumed off the premises
27 where it is sold (other than alcoholic beverages, soft drinks
28 and food that has been prepared for immediate consumption)
29 and prescription and nonprescription medicines, drugs,
30 medical appliances and insulin, urine testing materials,
31 syringes and needles used by diabetics, and 3/4% of the gross
32 receipts from other taxable sales made in the course of that
33 business. In DuPage, Kane, Lake, McHenry, and Will Counties,
34 the tax rate shall be 1/4% of the gross receipts from all
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1 taxable sales made in the course of that business. The tax
2 imposed under this Section and all civil penalties that may
3 be assessed as an incident thereof shall be collected and
4 enforced by the State Department of Revenue. The Department
5 shall have full power to administer and enforce this Section;
6 to collect all taxes and penalties so collected in the manner
7 hereinafter provided; and to determine all rights to credit
8 memoranda arising on account of the erroneous payment of tax
9 or penalty hereunder. In the administration of, and
10 compliance with this Section, the Department and persons who
11 are subject to this Section shall have the same rights,
12 remedies, privileges, immunities, powers and duties, and be
13 subject to the same conditions, restrictions, limitations,
14 penalties, exclusions, exemptions and definitions of terms,
15 and employ the same modes of procedure, as are prescribed in
16 Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
17 (in respect to all provisions therein other than the State
18 rate of tax), 2c, 3 (except as to the disposition of taxes
19 and penalties collected), 3a, 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
20 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12
21 and 13 of the Retailers' Occupation Tax Act and Section 3-7
22 of 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 Section may reimburse themselves for their
26 seller's tax liability hereunder by separately stating the
27 tax as an additional charge, which charge may be stated in
28 combination in a single amount with State taxes that sellers
29 are required to collect under the Use Tax Act, under any
30 bracket schedules the Department may prescribe.
31 Whenever the Department determines that a refund should
32 be made under this Section to a claimant instead of issuing a
33 credit memorandum, the Department shall notify the State
34 Comptroller, who shall cause the warrant to be drawn for the
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1 amount specified, and to the person named, in the
2 notification from the Department. The refund shall be paid
3 by the State Treasurer out of the Regional Transportation
4 Authority tax fund established under paragraph (n) of this
5 Section.
6 If a tax is imposed under this subsection (e), a tax
7 shall also be imposed under subsections (f) and (g) of this
8 Section.
9 For the purpose of determining whether a tax authorized
10 under this Section is applicable, a retail sale by a producer
11 of coal or other mineral mined in Illinois, is a sale at
12 retail at the place where the coal or other mineral mined in
13 Illinois is extracted from the earth. This paragraph does not
14 apply to coal or other mineral when it is delivered or
15 shipped by the seller to the purchaser at a point outside
16 Illinois so that the sale is exempt under the Federal
17 Constitution as a sale in interstate or foreign commerce.
18 Nothing in this Section shall be construed to authorize
19 the Regional Transportation Authority to impose a tax upon
20 the privilege of engaging in any business that under the
21 Constitution of the United States may not be made the subject
22 of taxation by this State.
23 (f) If a tax has been imposed under paragraph (e), a tax
24 shall also be imposed upon all persons engaged, in the
25 metropolitan region in the business of making sales of
26 service, who as an incident to making the sales of service,
27 transfer tangible personal property within the metropolitan
28 region, either in the form of tangible personal property or
29 in the form of real estate as an incident to a sale of
30 service. In Cook County, the tax rate shall be: (1) 1% of
31 the serviceman's cost price of food prepared for immediate
32 consumption and transferred incident to a sale of service
33 subject to the service occupation tax by an entity licensed
34 under the Hospital Licensing Act or the Nursing Home Care Act
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1 that is located in the metropolitan region; (2) 1% of the
2 selling price of food for human consumption that is to be
3 consumed off the premises where it is sold (other than
4 alcoholic beverages, soft drinks and food that has been
5 prepared for immediate consumption) and prescription and
6 nonprescription medicines, drugs, medical appliances and
7 insulin, urine testing materials, syringes and needles used
8 by diabetics; and (3) 3/4% of the selling price from other
9 taxable sales of tangible personal property transferred. In
10 DuPage, Kane, Lake, McHenry and Will Counties the rate shall
11 be 1/4% of the selling price of all tangible personal
12 property transferred.
13 The tax imposed under this paragraph and all civil
14 penalties that may be assessed as an incident thereof shall
15 be collected and enforced by the State Department of Revenue.
16 The Department shall have full power to administer and
17 enforce this paragraph; to collect all taxes and penalties
18 due hereunder; to dispose of taxes and penalties collected in
19 the manner hereinafter provided; and to determine all rights
20 to credit memoranda arising on account of the erroneous
21 payment of tax or penalty hereunder. In the administration
22 of and compliance with this paragraph, the Department and
23 persons who are subject to this paragraph shall have the same
24 rights, remedies, privileges, immunities, powers and duties,
25 and be subject to the same conditions, restrictions,
26 limitations, penalties, exclusions, exemptions and
27 definitions of terms, and employ the same modes of procedure,
28 as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
29 respect to all provisions therein other than the State rate
30 of tax), 4 (except that the reference to the State shall be
31 to the Authority), 5, 7, 8 (except that the jurisdiction to
32 which the tax shall be a debt to the extent indicated in that
33 Section 8 shall be the Authority), 9 (except as to the
34 disposition of taxes and penalties collected, and except that
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1 the returned merchandise credit for this tax may not be taken
2 against any State tax), 10, 11, 12 (except the reference
3 therein to Section 2b of the Retailers' Occupation Tax Act),
4 13 (except that any reference to the State shall mean the
5 Authority), the first paragraph of Section 15, 16, 17, 18, 19
6 and 20 of the Service Occupation Tax Act and Section 3-7 of
7 the Uniform Penalty and Interest Act, as fully as if those
8 provisions were set forth herein.
9 Persons subject to any tax imposed under the authority
10 granted in this paragraph may reimburse themselves for their
11 serviceman's tax liability hereunder by separately stating
12 the tax as an additional charge, that charge may be stated in
13 combination in a single amount with State tax that servicemen
14 are authorized to collect under the Service Use Tax Act,
15 under any bracket schedules the Department may prescribe.
16 Whenever the Department determines that a refund should
17 be made under this paragraph to a claimant instead of issuing
18 a credit memorandum, the Department shall notify the State
19 Comptroller, who shall cause the warrant to be drawn for the
20 amount specified, and to the person named in the notification
21 from the Department. The refund shall be paid by the State
22 Treasurer out of the Regional Transportation Authority tax
23 fund established under paragraph (n) of this Section.
24 Nothing in this paragraph shall be construed to authorize
25 the Authority to impose a tax upon the privilege of engaging
26 in any business that under the Constitution of the United
27 States may not be made the subject of taxation by the State.
28 (g) If a tax has been imposed under paragraph (e), a tax
29 shall also be imposed upon the privilege of using in the
30 metropolitan region, any item of tangible personal property
31 that is purchased outside the metropolitan region at retail
32 from a retailer, and that is titled or registered with an
33 agency of this State's government. In Cook County the tax
34 rate shall be 3/4% of the selling price of the tangible
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1 personal property, as "selling price" is defined in the Use
2 Tax Act. In DuPage, Kane, Lake, McHenry and Will counties
3 the tax rate shall be 1/4% of the selling price of the
4 tangible personal property, as "selling price" is defined in
5 the Use Tax Act. The tax shall be collected from persons
6 whose Illinois address for titling or registration purposes
7 is given as being in the metropolitan region. The tax shall
8 be collected by the Department of Revenue for the Regional
9 Transportation Authority. The tax must be paid to the State,
10 or an exemption determination must be obtained from the
11 Department of Revenue, before the title or certificate of
12 registration for the property may be issued. The tax or proof
13 of exemption may be transmitted to the Department by way of
14 the State agency with which, or the State officer with whom,
15 the tangible personal property must be titled or registered
16 if the Department and the State agency or State officer
17 determine that this procedure will expedite the processing of
18 applications for title or registration.
19 The Department shall have full power to administer and
20 enforce this paragraph; to collect all taxes, penalties and
21 interest due hereunder; to dispose of taxes, penalties and
22 interest collected in the manner hereinafter provided; and to
23 determine all rights to credit memoranda or refunds arising
24 on account of the erroneous payment of tax, penalty or
25 interest hereunder. In the administration of and compliance
26 with this paragraph, the Department and persons who are
27 subject to this paragraph shall have the same rights,
28 remedies, privileges, immunities, powers and duties, and be
29 subject to the same conditions, restrictions, limitations,
30 penalties, exclusions, exemptions and definitions of terms
31 and employ the same modes of procedure, as are prescribed in
32 Sections 2 (except the definition of "retailer maintaining a
33 place of business in this State"), 3 through 3-80 (except
34 provisions pertaining to the State rate of tax, and except
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1 provisions concerning collection or refunding of the tax by
2 retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
3 pertaining to claims by retailers and except the last
4 paragraph concerning refunds), 20, 21 and 22 of the Use Tax
5 Act, and are not inconsistent with this paragraph, as fully
6 as if those provisions were set forth herein.
7 Whenever the Department determines that a refund should
8 be made under this paragraph to a claimant instead of issuing
9 a credit memorandum, the Department shall notify the State
10 Comptroller, who shall cause the order to be drawn for the
11 amount specified, and to the person named in the notification
12 from the Department. The refund shall be paid by the State
13 Treasurer out of the Regional Transportation Authority tax
14 fund established under paragraph (n) of this Section.
15 (h) The Authority may impose a replacement vehicle tax
16 of $50 on any passenger car as defined in Section 1-157 of
17 the Illinois Vehicle Code purchased within the metropolitan
18 region by or on behalf of an insurance company to replace a
19 passenger car of an insured person in settlement of a total
20 loss claim. The tax imposed may not become effective before
21 the first day of the month following the passage of the
22 ordinance imposing the tax and receipt of a certified copy of
23 the ordinance by the Department of Revenue. The Department
24 of Revenue shall collect the tax for the Authority in
25 accordance with Sections 3-2002 and 3-2003 of the Illinois
26 Vehicle Code.
27 The Department shall immediately pay over to the State
28 Treasurer, ex officio, as trustee, all taxes collected
29 hereunder. On or before the 25th day of each calendar month,
30 the Department shall prepare and certify to the Comptroller
31 the disbursement of stated sums of money to the Authority.
32 The amount to be paid to the Authority shall be the amount
33 collected hereunder during the second preceding calendar
34 month by the Department, less any amount determined by the
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1 Department to be necessary for the payment of refunds.
2 Within 10 days after receipt by the Comptroller of the
3 disbursement certification to the Authority provided for in
4 this Section to be given to the Comptroller by the
5 Department, the Comptroller shall cause the orders to be
6 drawn for that amount in accordance with the directions
7 contained in the certification.
8 (i) The Board may not impose any other taxes except as
9 it may from time to time be authorized by law to impose.
10 (j) A certificate of registration issued by the State
11 Department of Revenue to a retailer under the Retailers'
12 Occupation Tax Act or under the Service Occupation Tax Act
13 shall permit the registrant to engage in a business that is
14 taxed under the tax imposed under paragraphs (b), (e), (f) or
15 (g) of this Section and no additional registration shall be
16 required under the tax. A certificate issued under the Use
17 Tax Act or the Service Use Tax Act shall be applicable with
18 regard to any tax imposed under paragraph (c) of this
19 Section.
20 (k) The provisions of any tax imposed under paragraph
21 (c) of this Section shall conform as closely as may be
22 practicable to the provisions of the Use Tax Act, including
23 without limitation conformity as to penalties with respect to
24 the tax imposed and as to the powers of the State Department
25 of Revenue to promulgate and enforce rules and regulations
26 relating to the administration and enforcement of the
27 provisions of the tax imposed. The taxes shall be imposed
28 only on use within the metropolitan region and at rates as
29 provided in the paragraph.
30 (l) The Board in imposing any tax as provided in
31 paragraphs (b) and (c) of this Section, shall, after seeking
32 the advice of the State Department of Revenue, provide means
33 for retailers, users or purchasers of motor fuel for purposes
34 other than those with regard to which the taxes may be
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1 imposed as provided in those paragraphs to receive refunds of
2 taxes improperly paid, which provisions may be at variance
3 with the refund provisions as applicable under the Municipal
4 Retailers Occupation Tax Act. The State Department of
5 Revenue may provide for certificates of registration for
6 users or purchasers of motor fuel for purposes other than
7 those with regard to which taxes may be imposed as provided
8 in paragraphs (b) and (c) of this Section to facilitate the
9 reporting and nontaxability of the exempt sales or uses.
10 (m) Any ordinance imposing or discontinuing any tax
11 under this Section shall be adopted and a certified copy
12 thereof filed with the Department on or before June 1,
13 whereupon the Department of Revenue shall proceed to
14 administer and enforce this Section on behalf of the Regional
15 Transportation Authority as of September 1 next following
16 such adoption and filing. Beginning January 1, 1992, an
17 ordinance or resolution imposing or discontinuing the tax
18 hereunder shall be adopted and a certified copy thereof filed
19 with the Department on or before the first day of July,
20 whereupon the Department shall proceed to administer and
21 enforce this Section as of the first day of October next
22 following such adoption and filing. Beginning January 1,
23 1993, an ordinance or resolution imposing or discontinuing
24 the tax hereunder shall be adopted and a certified copy
25 thereof filed with the Department on or before the first day
26 of October, whereupon the Department shall proceed to
27 administer and enforce this Section as of the first day of
28 January next following such adoption and filing.
29 (n) The State Department of Revenue shall, upon
30 collecting any taxes as provided in this Section, pay the
31 taxes over to the State Treasurer as trustee for the
32 Authority. The taxes shall be held in a trust fund outside
33 the State Treasury. On or before the 25th day of each
34 calendar month, the State Department of Revenue shall prepare
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1 and certify to the Comptroller of the State of Illinois the
2 amount to be paid to the Authority, which shall be the then
3 balance in the fund, less any amount determined by the
4 Department to be necessary for the payment of refunds. The
5 State Department of Revenue shall also certify to the
6 Authority the amount of taxes collected in each County other
7 than Cook County in the metropolitan region less the amount
8 necessary for the payment of refunds to taxpayers in the
9 County. With regard to the County of Cook, the certification
10 shall specify the amount of taxes collected within the City
11 of Chicago less the amount necessary for the payment of
12 refunds to taxpayers in the City of Chicago and the amount
13 collected in that portion of Cook County outside of Chicago
14 less the amount necessary for the payment of refunds to
15 taxpayers in that portion of Cook County outside of Chicago.
16 Within 10 days after receipt by the Comptroller of the
17 certification of the amount to be paid to the Authority, the
18 Comptroller shall cause an order to be drawn for the payment
19 for the amount in accordance with the direction in the
20 certification.
21 In addition to the disbursement required by the preceding
22 paragraph, an allocation shall be made in July 1991 and each
23 year thereafter to the Regional Transportation Authority.
24 The allocation shall be made in an amount equal to the
25 average monthly distribution during the preceding calendar
26 year (excluding the 2 months of lowest receipts) and the
27 allocation shall include the amount of average monthly
28 distribution from the Regional Transportation Authority
29 Occupation and Use Tax Replacement Fund. The distribution
30 made in July 1992 and each year thereafter under this
31 paragraph and the preceding paragraph shall be reduced by the
32 amount allocated and disbursed under this paragraph in the
33 preceding calendar year. The Department of Revenue shall
34 prepare and certify to the Comptroller for disbursement the
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1 allocations made in accordance with this paragraph.
2 (o) Failure to adopt a budget ordinance or otherwise to
3 comply with Section 4.01 of this Act or to adopt a Five-year
4 Program or otherwise to comply with paragraph (b) of Section
5 2.01 of this Act shall not affect the validity of any tax
6 imposed by the Authority otherwise in conformity with law.
7 (p) At no time shall a public transportation tax or
8 motor vehicle parking tax authorized under paragraphs (b),
9 (c) and (d) of this Section be in effect at the same time as
10 any retailers' occupation, use or service occupation tax
11 authorized under paragraphs (e), (f) and (g) of this Section
12 is in effect.
13 Any taxes imposed under the authority provided in
14 paragraphs (b), (c) and (d) shall remain in effect only until
15 the time as any tax authorized by paragraphs (e), (f) or (g)
16 of this Section are imposed and becomes effective. Once any
17 tax authorized by paragraphs (e), (f) or (g) is imposed the
18 Board may not reimpose taxes as authorized in paragraphs (b),
19 (c) and (d) of the Section unless any tax authorized by
20 paragraphs (e), (f) or (g) of this Section becomes
21 ineffective by means other than an ordinance of the Board.
22 (q) Any existing rights, remedies and obligations
23 (including enforcement by the Regional Transportation
24 Authority) arising under any tax imposed under paragraphs
25 (b), (c) or (d) of this Section shall not be affected by the
26 imposition of a tax under paragraphs (e), (f) or (g) of this
27 Section.
28 (Source: P.A. 86-928; 86-1475; 86-1481; 87-205; 87-435;
29 87-876; 87-895.)
30 Section 55. The Water Commission Act of 1985 is amended
31 by changing Section 4 as follows:
32 (70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
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1 Sec. 4. (a) The board of commissioners of any county
2 water commission may, by ordinance, impose throughout the
3 territory of the commission any or all of the taxes provided
4 in this Section for its corporate purposes. However, no
5 county water commission may impose any such tax unless the
6 commission certifies the proposition of imposing the tax to
7 the proper election officials, who shall submit the
8 proposition to the voters residing in the territory at an
9 election in accordance with the general election law, and the
10 proposition has been approved by a majority of those voting
11 on the proposition.
12 The proposition shall be in the form provided in Section
13 5 or shall be substantially in the following form:
14 -------------------------------------------------------------
15 Shall the (insert corporate
16 name of county water commission) YES
17 impose (state type of tax or ------------------------
18 taxes to be imposed) at the NO
19 rate of 1/4%?
20 -------------------------------------------------------------
21 Taxes imposed under this Section and civil penalties
22 imposed incident thereto shall be collected and enforced by
23 the State Department of Revenue. The Department shall have
24 the power to administer and enforce the taxes and to
25 determine all rights for refunds for erroneous payments of
26 the taxes.
27 (b) The board of commissioners may impose a County Water
28 Commission Retailers' Occupation Tax upon all persons engaged
29 in the business of selling tangible personal property at
30 retail in the territory of the commission at a rate of 1/4%
31 of the gross receipts from the sales made in the course of
32 such business within the territory. The tax imposed under
33 this paragraph and all civil penalties that may be assessed
34 as an incident thereof shall be collected and enforced by the
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1 State Department of Revenue. The Department shall have full
2 power to administer and enforce this paragraph; to collect
3 all taxes and penalties due hereunder; to dispose of taxes
4 and penalties so collected in the manner hereinafter
5 provided; and to determine all rights to credit memoranda
6 arising on account of the erroneous payment of tax or penalty
7 hereunder. In the administration of, and compliance with,
8 this paragraph, the Department and persons who are subject to
9 this paragraph shall have the same rights, remedies,
10 privileges, immunities, powers and duties, and be subject to
11 the same conditions, restrictions, limitations, penalties,
12 exclusions, exemptions and definitions of terms, and employ
13 the same modes of procedure, as are prescribed in Sections 1,
14 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect
15 to all provisions therein other than the State rate of tax
16 except that food for human consumption that is to be consumed
17 off the premises where it is sold (other than alcoholic
18 beverages, soft drinks, and food that has been prepared for
19 immediate consumption) and prescription and nonprescription
20 medicine, drugs, medical appliances and insulin, urine
21 testing materials, syringes, and needles used by diabetics,
22 for human use, shall not be subject to tax hereunder), 2c, 3
23 (except as to the disposition of taxes and penalties
24 collected), 3a, 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
25 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
26 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
27 Penalty and Interest Act, as fully as if those provisions
28 were set forth herein.
29 Persons subject to any tax imposed under the authority
30 granted in this paragraph may reimburse themselves for their
31 seller's tax liability hereunder by separately stating the
32 tax as an additional charge, which charge may be stated in
33 combination, in a single amount, with State taxes that
34 sellers are required to collect under the Use Tax Act and
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1 under subsection (e) of Section 4.03 of the Regional
2 Transportation Authority Act, in accordance with such bracket
3 schedules as the Department may prescribe.
4 Whenever the Department determines that a refund should
5 be made under this paragraph to a claimant instead of issuing
6 a credit memorandum, the Department shall notify the State
7 Comptroller, who shall cause the warrant to be drawn for the
8 amount specified, and to the person named, in the
9 notification from the Department. The refund shall be paid
10 by the State Treasurer out of a county water commission tax
11 fund established under paragraph (g) of this Section.
12 For the purpose of determining whether a tax authorized
13 under this paragraph is applicable, a retail sale by a
14 producer of coal or other mineral mined in Illinois is a sale
15 at retail at the place where the coal or other mineral mined
16 in Illinois is extracted from the earth. This paragraph does
17 not apply to coal or other mineral when it is delivered or
18 shipped by the seller to the purchaser at a point outside
19 Illinois so that the sale is exempt under the Federal
20 Constitution as a sale in interstate or foreign commerce.
21 If a tax is imposed under this subsection (b) a tax shall
22 also be imposed under subsections (c) and (d) of this
23 Section.
24 Nothing in this paragraph shall be construed to authorize
25 a county water commission to impose a tax upon the privilege
26 of engaging in any business which under the Constitution of
27 the United States may not be made the subject of taxation by
28 this State.
29 (c) If a tax has been imposed under subsection (b), a
30 tax shall also be imposed upon all persons engaged, in the
31 territory of the commission, in the business of making sales
32 of service, who, as an incident to making the sales of
33 service, transfer tangible personal property within the
34 territory. The tax rate shall be 1/4% of the selling price of
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1 tangible personal property so transferred within the
2 territory. The tax imposed under this paragraph and all
3 civil penalties that may be assessed as an incident thereof
4 shall be collected and enforced by the State Department of
5 Revenue. The Department shall have full power to administer
6 and enforce this paragraph; to collect all taxes and
7 penalties due hereunder; to dispose of taxes and penalties so
8 collected in the manner hereinafter provided; and to
9 determine all rights to credit memoranda arising on account
10 of the erroneous payment of tax or penalty hereunder. In the
11 administration of, and compliance with, this paragraph, the
12 Department and persons who are subject to this paragraph
13 shall have the same rights, remedies, privileges, immunities,
14 powers and duties, and be subject to the same conditions,
15 restrictions, limitations, penalties, exclusions, exemptions
16 and definitions of terms, and employ the same modes of
17 procedure, as are prescribed in Sections 1a-1, 2 (except that
18 the reference to State in the definition of supplier
19 maintaining a place of business in this State shall mean the
20 territory of the commission), 2a, 3 through 3-50 (in respect
21 to all provisions therein other than the State rate of tax
22 except that food for human consumption that is to be consumed
23 off the premises where it is sold (other than alcoholic
24 beverages, soft drinks, and food that has been prepared for
25 immediate consumption) and prescription and nonprescription
26 medicines, drugs, medical appliances and insulin, urine
27 testing materials, syringes, and needles used by diabetics,
28 for human use, shall not be subject to tax hereunder), 4
29 (except that the reference to the State shall be to the
30 territory of the commission), 5, 7, 8 (except that the
31 jurisdiction to which the tax shall be a debt to the extent
32 indicated in that Section 8 shall be the commission), 9
33 (except as to the disposition of taxes and penalties
34 collected and except that the returned merchandise credit for
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1 this tax may not be taken against any State tax), 10, 11, 12
2 (except the reference therein to Section 2b of the Retailers'
3 Occupation Tax Act), 13 (except that any reference to the
4 State shall mean the territory of the commission), the first
5 paragraph of Section 15, 15.5, 16, 17, 18, 19 and 20 of the
6 Service Occupation Tax Act as fully as if those provisions
7 were set forth herein.
8 Persons subject to any tax imposed under the authority
9 granted in this paragraph may reimburse themselves for their
10 serviceman's tax liability hereunder by separately stating
11 the tax as an additional charge, which charge may be stated
12 in combination, in a single amount, with State tax that
13 servicemen are authorized to collect under the Service Use
14 Tax Act, and any tax for which servicemen may be liable under
15 subsection (f) of Sec. 4.03 of the Regional Transportation
16 Authority Act, in accordance with such bracket schedules as
17 the Department may prescribe.
18 Whenever the Department determines that a refund should
19 be made under this paragraph to a claimant instead of issuing
20 a credit memorandum, the Department shall notify the State
21 Comptroller, who shall cause the warrant to be drawn for the
22 amount specified, and to the person named, in the
23 notification from the Department. The refund shall be paid
24 by the State Treasurer out of a county water commission tax
25 fund established under paragraph (g) of this Section.
26 Nothing in this paragraph shall be construed to authorize
27 a county water commission to impose a tax upon the privilege
28 of engaging in any business which under the Constitution of
29 the United States may not be made the subject of taxation by
30 the State.
31 (d) If a tax has been imposed under subsection (b), a
32 tax shall also imposed upon the privilege of using, in the
33 territory of the commission, any item of tangible personal
34 property that is purchased outside the territory at retail
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1 from a retailer, and that is titled or registered with an
2 agency of this State's government, at a rate of 1/4% of the
3 selling price of the tangible personal property within the
4 territory, as "selling price" is defined in the Use Tax Act.
5 The tax shall be collected from persons whose Illinois
6 address for titling or registration purposes is given as
7 being in the territory. The tax shall be collected by the
8 Department of Revenue for a county water commission. The tax
9 must be paid to the State, or an exemption determination must
10 be obtained from the Department of Revenue, before the title
11 or certificate of registration for the property may be
12 issued. The tax or proof of exemption may be transmitted to
13 the Department by way of the State agency with which, or the
14 State officer with whom, the tangible personal property must
15 be titled or registered if the Department and the State
16 agency or State officer determine that this procedure will
17 expedite the processing of applications for title or
18 registration.
19 The Department shall have full power to administer and
20 enforce this paragraph; to collect all taxes, penalties and
21 interest due hereunder; to dispose of taxes, penalties and
22 interest so collected in the manner hereinafter provided; and
23 to determine all rights to credit memoranda or refunds
24 arising on account of the erroneous payment of tax, penalty
25 or interest hereunder. In the administration of, and
26 compliance with this paragraph, the Department and persons
27 who are subject to this paragraph shall have the same rights,
28 remedies, privileges, immunities, powers and duties, and be
29 subject to the same conditions, restrictions, limitations,
30 penalties, exclusions, exemptions and definitions of terms
31 and employ the same modes of procedure, as are prescribed in
32 Sections 2 (except the definition of "retailer maintaining a
33 place of business in this State"), 3 through 3-80 (except
34 provisions pertaining to the State rate of tax, and except
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1 provisions concerning collection or refunding of the tax by
2 retailers, and except that food for human consumption that is
3 to be consumed off the premises where it is sold (other than
4 alcoholic beverages, soft drinks, and food that has been
5 prepared for immediate consumption) and prescription and
6 nonprescription medicines, drugs, medical appliances and
7 insulin, urine testing materials, syringes, and needles used
8 by diabetics, for human use, shall not be subject to tax
9 hereunder), 4, 11, 12, 12a, 14, 15, 19 (except the portions
10 pertaining to claims by retailers and except the last
11 paragraph concerning refunds), 20, 21 and 22 of the Use Tax
12 Act and Section 3-7 of the Uniform Penalty and Interest Act
13 that are not inconsistent with this paragraph, as fully as if
14 those provisions were set forth herein.
15 Whenever the Department determines that a refund should
16 be made under this paragraph to a claimant instead of issuing
17 a credit memorandum, the Department shall notify the State
18 Comptroller, who shall cause the order to be drawn for the
19 amount specified, and to the person named, in the
20 notification from the Department. The refund shall be paid
21 by the State Treasurer out of a county water commission tax
22 fund established under paragraph (g) of this Section.
23 (e) A certificate of registration issued by the State
24 Department of Revenue to a retailer under the Retailers'
25 Occupation Tax Act or under the Service Occupation Tax Act
26 shall permit the registrant to engage in a business that is
27 taxed under the tax imposed under paragraphs (b), (c) or (d)
28 of this Section and no additional registration shall be
29 required under the tax. A certificate issued under the Use
30 Tax Act or the Service Use Tax Act shall be applicable with
31 regard to any tax imposed under paragraph (c) of this
32 Section.
33 (f) Any ordinance imposing or discontinuing any tax
34 under this Section shall be adopted and a certified copy
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1 thereof filed with the Department on or before June 1,
2 whereupon the Department of Revenue shall proceed to
3 administer and enforce this Section on behalf of the county
4 water commission as of September 1 next following the
5 adoption and filing. Beginning January 1, 1992, an ordinance
6 or resolution imposing or discontinuing the tax hereunder
7 shall be adopted and a certified copy thereof filed with the
8 Department on or before the first day of July, whereupon the
9 Department shall proceed to administer and enforce this
10 Section as of the first day of October next following such
11 adoption and filing. Beginning January 1, 1993, an ordinance
12 or resolution imposing or discontinuing the tax hereunder
13 shall be adopted and a certified copy thereof filed with the
14 Department on or before the first day of October, whereupon
15 the Department shall proceed to administer and enforce this
16 Section as of the first day of January next following such
17 adoption and filing.
18 (g) The State Department of Revenue shall, upon
19 collecting any taxes as provided in this Section, pay the
20 taxes over to the State Treasurer as trustee for the
21 commission. The taxes shall be held in a trust fund outside
22 the State Treasury. On or before the 25th day of each
23 calendar month, the State Department of Revenue shall prepare
24 and certify to the Comptroller of the State of Illinois the
25 amount to be paid to the commission, which shall be the then
26 balance in the fund, less any amount determined by the
27 Department to be necessary for the payment of refunds. Within
28 10 days after receipt by the Comptroller of the certification
29 of the amount to be paid to the commission, the Comptroller
30 shall cause an order to be drawn for the payment for the
31 amount in accordance with the direction in the certification.
32 (Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
33 Section 99. Effective date. This Act takes effect upon
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1 becoming law.
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1 INDEX
2 Statutes amended in order of appearance
3 30 ILCS 105/5.490 new
4 35 ILCS 105/12 from Ch. 120, par. 439.12
5 35 ILCS 110/12 from Ch. 120, par. 439.42
6 35 ILCS 115/12 from Ch. 120, par. 439.112
7 35 ILCS 120/3 from Ch. 120, par. 442
8 35 ILCS 120/3a new
9 35 ILCS 120/6b from Ch. 120, par. 445b
10 35 ILCS 120/6c from Ch. 120, par. 445c
11 55 ILCS 5/5-1006 from Ch. 34, par. 5-1006
12 55 ILCS 5/5-1006.5
13 65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1
14 65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3
15 65 ILCS 5/8-11-1.6
16 70 ILCS 200/245-12
17 70 ILCS 3610/5.01 from Ch. 111 2/3, par. 355.01
18 70 ILCS 3615/4.03 from Ch. 111 2/3, par. 704.03
19 70 ILCS 3720/4 from Ch. 111 2/3, par. 254