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91_SB0878eng SB878 Engrossed 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 SB878 Engrossed -2- LRB9105091PTpk 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, SB878 Engrossed -3- LRB9105091PTpk 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 SB878 Engrossed -4- LRB9105091PTpk 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 SB878 Engrossed -5- LRB9105091PTpk 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 SB878 Engrossed -6- LRB9105091PTpk 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 SB878 Engrossed -7- LRB9105091PTpk 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 SB878 Engrossed -8- LRB9105091PTpk 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 SB878 Engrossed -9- LRB9105091PTpk 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 SB878 Engrossed -10- LRB9105091PTpk 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 SB878 Engrossed -11- LRB9105091PTpk 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 SB878 Engrossed -12- LRB9105091PTpk 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 SB878 Engrossed -13- LRB9105091PTpk 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 SB878 Engrossed -14- LRB9105091PTpk 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 SB878 Engrossed -15- LRB9105091PTpk 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, SB878 Engrossed -16- LRB9105091PTpk 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% SB878 Engrossed -17- LRB9105091PTpk 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 SB878 Engrossed -18- LRB9105091PTpk 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 SB878 Engrossed -19- LRB9105091PTpk 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 SB878 Engrossed -20- LRB9105091PTpk 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 SB878 Engrossed -21- LRB9105091PTpk 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 SB878 Engrossed -22- LRB9105091PTpk 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 SB878 Engrossed -23- LRB9105091PTpk 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 SB878 Engrossed -24- LRB9105091PTpk 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. SB878 Engrossed -25- LRB9105091PTpk 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 SB878 Engrossed -26- LRB9105091PTpk 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 SB878 Engrossed -27- LRB9105091PTpk 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 under this 18 Act, 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, and 22 8-11-6 of the Illinois Municipal Code, Section 245-12 of the 23 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 SB878 Engrossed -28- LRB9105091PTpk 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 of7Tentative Determination of Claim, notify the claimant or his8legal representative of such determination, which9determination 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 proceedingand shall be prima17facie proof of the correctness of the Department's18determination, as shown therein. If such claimant, or the 19 legal representative of a deceased or incompetent taxpayer, 20 within 60 days after the Department'sNotice of Tentative21 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 itsFinaldetermination 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 SB878 Engrossed -29- LRB9105091PTpk 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 to18the Department's Notice of Tentative Determination of Claim19is not filed within 60 days and a request for a hearing20thereon is not made as provided in Section 6b of this Act,21the said Notice shall thereupon become and operate as a Final22Determination; and, if the Department's Notice of Tentative23Determination, upon becoming a Final Determination, indicates24no amount due to the claimant, or, upon issuance of a credit25memorandum or refund for the amount, if any, found by the26Department to be due, the claim in all its aspects shall be27closed and no longer open to protest, hearing, judicial28review, or by any other proceeding or action whatever, either29before 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 SB878 Engrossed -30- LRB9105091PTpk 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 SB878 Engrossed -31- LRB9105091PTpk 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 SB878 Engrossed -32- LRB9105091PTpk 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 SB878 Engrossed -33- LRB9105091PTpk 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 SB878 Engrossed -34- LRB9105091PTpk 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 SB878 Engrossed -35- LRB9105091PTpk 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 SB878 Engrossed -36- LRB9105091PTpk 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. SB878 Engrossed -37- LRB9105091PTpk 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 SB878 Engrossed -38- LRB9105091PTpk 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 SB878 Engrossed -39- LRB9105091PTpk 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 SB878 Engrossed -40- LRB9105091PTpk 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 SB878 Engrossed -41- LRB9105091PTpk 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 35. 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 SB878 Engrossed -42- LRB9105091PTpk 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 SB878 Engrossed -43- LRB9105091PTpk 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 SB878 Engrossed -44- LRB9105091PTpk 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 SB878 Engrossed -45- LRB9105091PTpk 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 SB878 Engrossed -46- LRB9105091PTpk 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 SB878 Engrossed -47- LRB9105091PTpk 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 SB878 Engrossed -48- LRB9105091PTpk 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 SB878 Engrossed -49- LRB9105091PTpk 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 SB878 Engrossed -50- LRB9105091PTpk 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" SB878 Engrossed -51- LRB9105091PTpk 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 SB878 Engrossed -52- LRB9105091PTpk 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. SB878 Engrossed -53- LRB9105091PTpk 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 SB878 Engrossed -54- LRB9105091PTpk 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: SB878 Engrossed -55- LRB9105091PTpk 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 SB878 Engrossed -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) SB878 Engrossed -57- LRB9105091PTpk 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 SB878 Engrossed -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 SB878 Engrossed -59- LRB9105091PTpk 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 SB878 Engrossed -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 SB878 Engrossed -61- LRB9105091PTpk 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 SB878 Engrossed -62- LRB9105091PTpk 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 SB878 Engrossed -63- LRB9105091PTpk 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 SB878 Engrossed -64- LRB9105091PTpk 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 SB878 Engrossed -65- LRB9105091PTpk 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 SB878 Engrossed -66- LRB9105091PTpk 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 SB878 Engrossed -67- LRB9105091PTpk 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 SB878 Engrossed -68- LRB9105091PTpk 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 SB878 Engrossed -69- LRB9105091PTpk 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 SB878 Engrossed -70- LRB9105091PTpk 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 SB878 Engrossed -71- LRB9105091PTpk 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 SB878 Engrossed -72- LRB9105091PTpk 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 SB878 Engrossed -73- LRB9105091PTpk 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 SB878 Engrossed -74- LRB9105091PTpk 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 SB878 Engrossed -75- LRB9105091PTpk 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 SB878 Engrossed -76- LRB9105091PTpk 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 SB878 Engrossed -77- LRB9105091PTpk 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 SB878 Engrossed -78- LRB9105091PTpk 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 SB878 Engrossed -79- LRB9105091PTpk 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 SB878 Engrossed -80- LRB9105091PTpk 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 SB878 Engrossed -81- LRB9105091PTpk 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 SB878 Engrossed -82- LRB9105091PTpk 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 SB878 Engrossed -83- LRB9105091PTpk 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 SB878 Engrossed -84- LRB9105091PTpk 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 SB878 Engrossed -85- LRB9105091PTpk 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) SB878 Engrossed -86- LRB9105091PTpk 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 SB878 Engrossed -87- LRB9105091PTpk 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 SB878 Engrossed -88- LRB9105091PTpk 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 SB878 Engrossed -89- LRB9105091PTpk 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 SB878 Engrossed -90- LRB9105091PTpk 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 SB878 Engrossed -91- LRB9105091PTpk 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 SB878 Engrossed -92- LRB9105091PTpk 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 SB878 Engrossed -93- LRB9105091PTpk 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 SB878 Engrossed -94- LRB9105091PTpk 1 becoming law. SB878 Engrossed -95- LRB9105091PTpk 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