[ Regular Legislation ]
[ Special Session Legislation ]
[ Home ]
[ Back ]
[ Search ]
[ Bottom ]
| [ Introduced ] | [ Enrolled ] | [ House Amendment 001 ] |
| [ House Amendment 002 ] | [ Senate Amendment 001 ] | [ Senate Amendment 002 ] |
91_SB1310eng SB1310 Engrossed LRB9110257SMdv 1 AN ACT in relation to taxes. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Use Tax Act is amended by changing 5 Sections 3-10 and 9 as follows: 6 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10) 7 Sec. 3-10. Rate of tax. Unless otherwise provided in 8 this Section, the tax imposed by this Act is at the rate of 9 6.25% of either the selling price or the fair market value, 10 if any, of the tangible personal property. In all cases 11 where property functionally used or consumed is the same as 12 the property that was purchased at retail, then the tax is 13 imposed on the selling price of the property. In all cases 14 where property functionally used or consumed is a by-product 15 or waste product that has been refined, manufactured, or 16 produced from property purchased at retail, then the tax is 17 imposed on the lower of the fair market value, if any, of the 18 specific property so used in this State or on the selling 19 price of the property purchased at retail. For purposes of 20 this Section "fair market value" means the price at which 21 property would change hands between a willing buyer and a 22 willing seller, neither being under any compulsion to buy or 23 sell and both having reasonable knowledge of the relevant 24 facts. The fair market value shall be established by Illinois 25 sales by the taxpayer of the same property as that 26 functionally used or consumed, or if there are no such sales 27 by the taxpayer, then comparable sales or purchases of 28 property of like kind and character in Illinois. 29 With respect to motor fuel, as defined in Section 1.1 of 30 the Motor Fuel Tax Law, and gasohol, as defined in Section 31 3-40 of the Use Tax Act, the tax is imposed at the rate of SB1310 Engrossed -2- LRB9110257SMdv 1 1.25%. If, however, the aggregate tax revenues from motor 2 fuel and gasohol under the Motor Fuel Tax Law during the 3 period from October 1, 2002 through September 30, 2003 are 4 not at least 15% more than the aggregate tax revenues from 5 motor fuel and gasohol under that Law during the period from 6 October 1, 1999 through September 30, 2000, then beginning 7 January 1, 2004 the tax is imposed on motor fuel and gasohol 8 at the 6.25% general rate. 9 With respect to gasohol, the tax imposed by this Act 10 applies to 70% of the proceeds of sales made on or after 11 January 1, 1990, and before July 1, 2003, and to 100% of the 12 proceeds of sales made thereafter. 13 With respect to food for human consumption that is to be 14 consumed off the premises where it is sold (other than 15 alcoholic beverages, soft drinks, and food that has been 16 prepared for immediate consumption) and prescription and 17 nonprescription medicines, drugs, medical appliances, 18 modifications to a motor vehicle for the purpose of rendering 19 it usable by a disabled person, and insulin, urine testing 20 materials, syringes, and needles used by diabetics, for human 21 use, the tax is imposed at the rate of 1%. For the purposes 22 of this Section, the term "soft drinks" means any complete, 23 finished, ready-to-use, non-alcoholic drink, whether 24 carbonated or not, including but not limited to soda water, 25 cola, fruit juice, vegetable juice, carbonated water, and all 26 other preparations commonly known as soft drinks of whatever 27 kind or description that are contained in any closed or 28 sealed bottle, can, carton, or container, regardless of size. 29 "Soft drinks" does not include coffee, tea, non-carbonated 30 water, infant formula, milk or milk products as defined in 31 the Grade A Pasteurized Milk and Milk Products Act, or drinks 32 containing 50% or more natural fruit or vegetable juice. 33 Notwithstanding any other provisions of this Act, "food 34 for human consumption that is to be consumed off the premises SB1310 Engrossed -3- LRB9110257SMdv 1 where it is sold" includes all food sold through a vending 2 machine, except soft drinks and food products that are 3 dispensed hot from a vending machine, regardless of the 4 location of the vending machine. 5 If the property that is purchased at retail from a 6 retailer is acquired outside Illinois and used outside 7 Illinois before being brought to Illinois for use here and is 8 taxable under this Act, the "selling price" on which the tax 9 is computed shall be reduced by an amount that represents a 10 reasonable allowance for depreciation for the period of prior 11 out-of-state use. 12 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 13 91-51, eff. 6-30-99.) 14 (35 ILCS 105/9) (from Ch. 120, par. 439.9) 15 Sec. 9. Except as to motor vehicles, watercraft, 16 aircraft, and trailers that are required to be registered 17 with an agency of this State, each retailer required or 18 authorized to collect the tax imposed by this Act shall pay 19 to the Department the amount of such tax (except as otherwise 20 provided) at the time when he is required to file his return 21 for the period during which such tax was collected, less a 22 discount of 2.1% prior to January 1, 1990, and 1.75% on and 23 after January 1, 1990, or $5 per calendar year, whichever is 24 greater, which is allowed to reimburse the retailer for 25 expenses incurred in collecting the tax, keeping records, 26 preparing and filing returns, remitting the tax and supplying 27 data to the Department on request. In the case of retailers 28 who report and pay the tax on a transaction by transaction 29 basis, as provided in this Section, such discount shall be 30 taken with each such tax remittance instead of when such 31 retailer files his periodic return. A retailer need not 32 remit that part of any tax collected by him to the extent 33 that he is required to remit and does remit the tax imposed SB1310 Engrossed -4- LRB9110257SMdv 1 by the Retailers' Occupation Tax Act, with respect to the 2 sale of the same property. 3 Where such tangible personal property is sold under a 4 conditional sales contract, or under any other form of sale 5 wherein the payment of the principal sum, or a part thereof, 6 is extended beyond the close of the period for which the 7 return is filed, the retailer, in collecting the tax (except 8 as to motor vehicles, watercraft, aircraft, and trailers that 9 are required to be registered with an agency of this State), 10 may collect for each tax return period, only the tax 11 applicable to that part of the selling price actually 12 received during such tax return period. 13 Except as provided in this Section, on or before the 14 twentieth day of each calendar month, such retailer shall 15 file a return for the preceding calendar month. Such return 16 shall be filed on forms prescribed by the Department and 17 shall furnish such information as the Department may 18 reasonably require. 19 The Department may require returns to be filed on a 20 quarterly basis. If so required, a return for each calendar 21 quarter shall be filed on or before the twentieth day of the 22 calendar month following the end of such calendar quarter. 23 The taxpayer shall also file a return with the Department for 24 each of the first two months of each calendar quarter, on or 25 before the twentieth day of the following calendar month, 26 stating: 27 1. The name of the seller; 28 2. The address of the principal place of business 29 from which he engages in the business of selling tangible 30 personal property at retail in this State; 31 3. The total amount of taxable receipts received by 32 him during the preceding calendar month from sales of 33 tangible personal property by him during such preceding 34 calendar month, including receipts from charge and time SB1310 Engrossed -5- LRB9110257SMdv 1 sales, but less all deductions allowed by law; 2 4. The amount of credit provided in Section 2d of 3 this Act; 4 5. The amount of tax due; 5 5-5. The signature of the taxpayer; and 6 6. Such other reasonable information as the 7 Department may require. 8 If a taxpayer fails to sign a return within 30 days after 9 the proper notice and demand for signature by the Department, 10 the return shall be considered valid and any amount shown to 11 be due on the return shall be deemed assessed. 12 Beginning October 1, 1993, a taxpayer who has an average 13 monthly tax liability of $150,000 or more shall make all 14 payments required by rules of the Department by electronic 15 funds transfer. Beginning October 1, 1994, a taxpayer who has 16 an average monthly tax liability of $100,000 or more shall 17 make all payments required by rules of the Department by 18 electronic funds transfer. Beginning October 1, 1995, a 19 taxpayer who has an average monthly tax liability of $50,000 20 or more shall make all payments required by rules of the 21 Department by electronic funds transfer. Beginning October 1, 22 2000, a taxpayer who has an annual tax liability of $200,000 23 or more shall make all payments required by rules of the 24 Department by electronic funds transfer. The term "annual 25 tax liability" shall be the sum of the taxpayer's liabilities 26 under this Act, and under all other State and local 27 occupation and use tax laws administered by the Department, 28 for the immediately preceding calendar year. The term 29 "average monthly tax liability" means the sum of the 30 taxpayer's liabilities under this Act, and under all other 31 State and local occupation and use tax laws administered by 32 the Department, for the immediately preceding calendar year 33 divided by 12. 34 Before August 1 of each year beginning in 1993, the SB1310 Engrossed -6- LRB9110257SMdv 1 Department shall notify all taxpayers required to make 2 payments by electronic funds transfer. All taxpayers required 3 to make payments by electronic funds transfer shall make 4 those payments for a minimum of one year beginning on October 5 1. 6 Any taxpayer not required to make payments by electronic 7 funds transfer may make payments by electronic funds transfer 8 with the permission of the Department. 9 All taxpayers required to make payment by electronic 10 funds transfer and any taxpayers authorized to voluntarily 11 make payments by electronic funds transfer shall make those 12 payments in the manner authorized by the Department. 13 The Department shall adopt such rules as are necessary to 14 effectuate a program of electronic funds transfer and the 15 requirements of this Section. 16 Before October 1, 2000, if the taxpayer's average monthly 17 tax liability to the Department under this Act, the 18 Retailers' Occupation Tax Act, the Service Occupation Tax 19 Act, the Service Use Tax Act was $10,000 or more during the 20 preceding 4 complete calendar quarters, he shall file a 21 return with the Department each month by the 20th day of the 22 month next following the month during which such tax 23 liability is incurred and shall make payments to the 24 Department on or before the 7th, 15th, 22nd and last day of 25 the month during which such liability is incurred. On and 26 after October 1, 2000, if the taxpayer's average monthly tax 27 liability to the Department under this Act, the Retailers' 28 Occupation Tax Act, the Service Occupation Tax Act, and the 29 Service Use Tax Act was $20,000 or more during the preceding 30 4 complete calendar quarters, he shall file a return with the 31 Department each month by the 20th day of the month next 32 following the month during which such tax liability is 33 incurred and shall make payment to the Department on or 34 before the 7th, 15th, 22nd and last day oforthe month SB1310 Engrossed -7- LRB9110257SMdv 1 during which such liability is incurred. If the month during 2 which such tax liability is incurred began prior to January 3 1, 1985, each payment shall be in an amount equal to 1/4 of 4 the taxpayer's actual liability for the month or an amount 5 set by the Department not to exceed 1/4 of the average 6 monthly liability of the taxpayer to the Department for the 7 preceding 4 complete calendar quarters (excluding the month 8 of highest liability and the month of lowest liability in 9 such 4 quarter period). If the month during which such tax 10 liability is incurred begins on or after January 1, 1985, and 11 prior to January 1, 1987, each payment shall be in an amount 12 equal to 22.5% of the taxpayer's actual liability for the 13 month or 27.5% of the taxpayer's liability for the same 14 calendar month of the preceding year. If the month during 15 which such tax liability is incurred begins on or after 16 January 1, 1987, and prior to January 1, 1988, each payment 17 shall be in an amount equal to 22.5% of the taxpayer's actual 18 liability for the month or 26.25% of the taxpayer's liability 19 for the same calendar month of the preceding year. If the 20 month during which such tax liability is incurred begins on 21 or after January 1, 1988, and prior to January 1, 1989, or 22 begins on or after January 1, 1996, each payment shall be in 23 an amount equal to 22.5% of the taxpayer's actual liability 24 for the month or 25% of the taxpayer's liability for the same 25 calendar month of the preceding year. If the month during 26 which such tax liability is incurred begins on or after 27 January 1, 1989, and prior to January 1, 1996, each payment 28 shall be in an amount equal to 22.5% of the taxpayer's actual 29 liability for the month or 25% of the taxpayer's liability 30 for the same calendar month of the preceding year or 100% of 31 the taxpayer's actual liability for the quarter monthly 32 reporting period. The amount of such quarter monthly 33 payments shall be credited against the final tax liability of 34 the taxpayer's return for that month. Before October 1, SB1310 Engrossed -8- LRB9110257SMdv 1 2000, once applicable, the requirement of the making of 2 quarter monthly payments to the Department shall continue 3 until such taxpayer's average monthly liability to the 4 Department during the preceding 4 complete calendar quarters 5 (excluding the month of highest liability and the month of 6 lowest liability) is less than $9,000, or until such 7 taxpayer's average monthly liability to the Department as 8 computed for each calendar quarter of the 4 preceding 9 complete calendar quarter period is less than $10,000. 10 However, if a taxpayer can show the Department that a 11 substantial change in the taxpayer's business has occurred 12 which causes the taxpayer to anticipate that his average 13 monthly tax liability for the reasonably foreseeable future 14 will fall below the $10,000 threshold stated above, then such 15 taxpayer may petition the Department for change in such 16 taxpayer's reporting status. On and after October 1, 2000, 17 once applicable, the requirement of the making of quarter 18 monthly payments to the Department shall continue until such 19 taxpayer's average monthly liability to the Department during 20 the preceding 4 complete calendar quarters (excluding the 21 month of highest liability and the month of lowest liability) 22 is less than $19,000 or until such taxpayer's average monthly 23 liability to the Department as computed for each calendar 24 quarter of the 4 preceding complete calendar quarter period 25 is less than $20,000. However, if a taxpayer can show the 26 Department that a substantial change in the taxpayer's 27 business has occurred which causes the taxpayer to anticipate 28 that his average monthly tax liability for the reasonably 29 foreseeable future will fall below the $20,000 threshold 30 stated above, then such taxpayer may petition the Department 31 for a change in such taxpayer's reporting status. The 32 Department shall change such taxpayer's reporting status 33 unless it finds that such change is seasonal in nature and 34 not likely to be long term. If any such quarter monthly SB1310 Engrossed -9- LRB9110257SMdv 1 payment is not paid at the time or in the amount required by 2 this Section, then the taxpayer shall be liable for penalties 3 and interest on the difference between the minimum amount due 4 and the amount of such quarter monthly payment actually and 5 timely paid, except insofar as the taxpayer has previously 6 made payments for that month to the Department in excess of 7 the minimum payments previously due as provided in this 8 Section. The Department shall make reasonable rules and 9 regulations to govern the quarter monthly payment amount and 10 quarter monthly payment dates for taxpayers who file on other 11 than a calendar monthly basis. 12 If any such payment provided for in this Section exceeds 13 the taxpayer's liabilities under this Act, the Retailers' 14 Occupation Tax Act, the Service Occupation Tax Act and the 15 Service Use Tax Act, as shown by an original monthly return, 16 the Department shall issue to the taxpayer a credit 17 memorandum no later than 30 days after the date of payment, 18 which memorandum may be submitted by the taxpayer to the 19 Department in payment of tax liability subsequently to be 20 remitted by the taxpayer to the Department or be assigned by 21 the taxpayer to a similar taxpayer under this Act, the 22 Retailers' Occupation Tax Act, the Service Occupation Tax Act 23 or the Service Use Tax Act, in accordance with reasonable 24 rules and regulations to be prescribed by the Department, 25 except that if such excess payment is shown on an original 26 monthly return and is made after December 31, 1986, no credit 27 memorandum shall be issued, unless requested by the taxpayer. 28 If no such request is made, the taxpayer may credit such 29 excess payment against tax liability subsequently to be 30 remitted by the taxpayer to the Department under this Act, 31 the Retailers' Occupation Tax Act, the Service Occupation Tax 32 Act or the Service Use Tax Act, in accordance with reasonable 33 rules and regulations prescribed by the Department. If the 34 Department subsequently determines that all or any part of SB1310 Engrossed -10- LRB9110257SMdv 1 the credit taken was not actually due to the taxpayer, the 2 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced 3 by 2.1% or 1.75% of the difference between the credit taken 4 and that actually due, and the taxpayer shall be liable for 5 penalties and interest on such difference. 6 If the retailer is otherwise required to file a monthly 7 return and if the retailer's average monthly tax liability to 8 the Department does not exceed $200, the Department may 9 authorize his returns to be filed on a quarter annual basis, 10 with the return for January, February, and March of a given 11 year being due by April 20 of such year; with the return for 12 April, May and June of a given year being due by July 20 of 13 such year; with the return for July, August and September of 14 a given year being due by October 20 of such year, and with 15 the return for October, November and December of a given year 16 being due by January 20 of the following year. 17 If the retailer is otherwise required to file a monthly 18 or quarterly return and if the retailer's average monthly tax 19 liability to the Department does not exceed $50, the 20 Department may authorize his returns to be filed on an annual 21 basis, with the return for a given year being due by January 22 20 of the following year. 23 Such quarter annual and annual returns, as to form and 24 substance, shall be subject to the same requirements as 25 monthly returns. 26 Notwithstanding any other provision in this Act 27 concerning the time within which a retailer may file his 28 return, in the case of any retailer who ceases to engage in a 29 kind of business which makes him responsible for filing 30 returns under this Act, such retailer shall file a final 31 return under this Act with the Department not more than one 32 month after discontinuing such business. 33 In addition, with respect to motor vehicles, watercraft, 34 aircraft, and trailers that are required to be registered SB1310 Engrossed -11- LRB9110257SMdv 1 with an agency of this State, every retailer selling this 2 kind of tangible personal property shall file, with the 3 Department, upon a form to be prescribed and supplied by the 4 Department, a separate return for each such item of tangible 5 personal property which the retailer sells, except that 6 where, in the same transaction, a retailer of aircraft, 7 watercraft, motor vehicles or trailers transfers more than 8 one aircraft, watercraft, motor vehicle or trailer to another 9 aircraft, watercraft, motor vehicle or trailer retailer for 10 the purpose of resale, that seller for resale may report the 11 transfer of all the aircraft, watercraft, motor vehicles or 12 trailers involved in that transaction to the Department on 13 the same uniform invoice-transaction reporting return form. 14 For purposes of this Section, "watercraft" means a Class 2, 15 Class 3, or Class 4 watercraft as defined in Section 3-2 of 16 the Boat Registration and Safety Act, a personal watercraft, 17 or any boat equipped with an inboard motor. 18 The transaction reporting return in the case of motor 19 vehicles or trailers that are required to be registered with 20 an agency of this State, shall be the same document as the 21 Uniform Invoice referred to in Section 5-402 of the Illinois 22 Vehicle Code and must show the name and address of the 23 seller; the name and address of the purchaser; the amount of 24 the selling price including the amount allowed by the 25 retailer for traded-in property, if any; the amount allowed 26 by the retailer for the traded-in tangible personal property, 27 if any, to the extent to which Section 2 of this Act allows 28 an exemption for the value of traded-in property; the balance 29 payable after deducting such trade-in allowance from the 30 total selling price; the amount of tax due from the retailer 31 with respect to such transaction; the amount of tax collected 32 from the purchaser by the retailer on such transaction (or 33 satisfactory evidence that such tax is not due in that 34 particular instance, if that is claimed to be the fact); the SB1310 Engrossed -12- LRB9110257SMdv 1 place and date of the sale; a sufficient identification of 2 the property sold; such other information as is required in 3 Section 5-402 of the Illinois Vehicle Code, and such other 4 information as the Department may reasonably require. 5 The transaction reporting return in the case of 6 watercraft and aircraft must show the name and address of the 7 seller; the name and address of the purchaser; the amount of 8 the selling price including the amount allowed by the 9 retailer for traded-in property, if any; the amount allowed 10 by the retailer for the traded-in tangible personal property, 11 if any, to the extent to which Section 2 of this Act allows 12 an exemption for the value of traded-in property; the balance 13 payable after deducting such trade-in allowance from the 14 total selling price; the amount of tax due from the retailer 15 with respect to such transaction; the amount of tax collected 16 from the purchaser by the retailer on such transaction (or 17 satisfactory evidence that such tax is not due in that 18 particular instance, if that is claimed to be the fact); the 19 place and date of the sale, a sufficient identification of 20 the property sold, and such other information as the 21 Department may reasonably require. 22 Such transaction reporting return shall be filed not 23 later than 20 days after the date of delivery of the item 24 that is being sold, but may be filed by the retailer at any 25 time sooner than that if he chooses to do so. The 26 transaction reporting return and tax remittance or proof of 27 exemption from the tax that is imposed by this Act may be 28 transmitted to the Department by way of the State agency with 29 which, or State officer with whom, the tangible personal 30 property must be titled or registered (if titling or 31 registration is required) if the Department and such agency 32 or State officer determine that this procedure will expedite 33 the processing of applications for title or registration. 34 With each such transaction reporting return, the retailer SB1310 Engrossed -13- LRB9110257SMdv 1 shall remit the proper amount of tax due (or shall submit 2 satisfactory evidence that the sale is not taxable if that is 3 the case), to the Department or its agents, whereupon the 4 Department shall issue, in the purchaser's name, a tax 5 receipt (or a certificate of exemption if the Department is 6 satisfied that the particular sale is tax exempt) which such 7 purchaser may submit to the agency with which, or State 8 officer with whom, he must title or register the tangible 9 personal property that is involved (if titling or 10 registration is required) in support of such purchaser's 11 application for an Illinois certificate or other evidence of 12 title or registration to such tangible personal property. 13 No retailer's failure or refusal to remit tax under this 14 Act precludes a user, who has paid the proper tax to the 15 retailer, from obtaining his certificate of title or other 16 evidence of title or registration (if titling or registration 17 is required) upon satisfying the Department that such user 18 has paid the proper tax (if tax is due) to the retailer. The 19 Department shall adopt appropriate rules to carry out the 20 mandate of this paragraph. 21 If the user who would otherwise pay tax to the retailer 22 wants the transaction reporting return filed and the payment 23 of tax or proof of exemption made to the Department before 24 the retailer is willing to take these actions and such user 25 has not paid the tax to the retailer, such user may certify 26 to the fact of such delay by the retailer, and may (upon the 27 Department being satisfied of the truth of such 28 certification) transmit the information required by the 29 transaction reporting return and the remittance for tax or 30 proof of exemption directly to the Department and obtain his 31 tax receipt or exemption determination, in which event the 32 transaction reporting return and tax remittance (if a tax 33 payment was required) shall be credited by the Department to 34 the proper retailer's account with the Department, but SB1310 Engrossed -14- LRB9110257SMdv 1 without the 2.1% or 1.75% discount provided for in this 2 Section being allowed. When the user pays the tax directly 3 to the Department, he shall pay the tax in the same amount 4 and in the same form in which it would be remitted if the tax 5 had been remitted to the Department by the retailer. 6 Where a retailer collects the tax with respect to the 7 selling price of tangible personal property which he sells 8 and the purchaser thereafter returns such tangible personal 9 property and the retailer refunds the selling price thereof 10 to the purchaser, such retailer shall also refund, to the 11 purchaser, the tax so collected from the purchaser. When 12 filing his return for the period in which he refunds such tax 13 to the purchaser, the retailer may deduct the amount of the 14 tax so refunded by him to the purchaser from any other use 15 tax which such retailer may be required to pay or remit to 16 the Department, as shown by such return, if the amount of the 17 tax to be deducted was previously remitted to the Department 18 by such retailer. If the retailer has not previously 19 remitted the amount of such tax to the Department, he is 20 entitled to no deduction under this Act upon refunding such 21 tax to the purchaser. 22 Any retailer filing a return under this Section shall 23 also include (for the purpose of paying tax thereon) the 24 total tax covered by such return upon the selling price of 25 tangible personal property purchased by him at retail from a 26 retailer, but as to which the tax imposed by this Act was not 27 collected from the retailer filing such return, and such 28 retailer shall remit the amount of such tax to the Department 29 when filing such return. 30 If experience indicates such action to be practicable, 31 the Department may prescribe and furnish a combination or 32 joint return which will enable retailers, who are required to 33 file returns hereunder and also under the Retailers' 34 Occupation Tax Act, to furnish all the return information SB1310 Engrossed -15- LRB9110257SMdv 1 required by both Acts on the one form. 2 Where the retailer has more than one business registered 3 with the Department under separate registration under this 4 Act, such retailer may not file each return that is due as a 5 single return covering all such registered businesses, but 6 shall file separate returns for each such registered 7 business. 8 Beginning January 1, 1990, each month the Department 9 shall pay into the State and Local Sales Tax Reform Fund, a 10 special fund in the State Treasury which is hereby created, 11 the net revenue realized for the preceding month from the 1% 12 tax on sales of food for human consumption which is to be 13 consumed off the premises where it is sold (other than 14 alcoholic beverages, soft drinks and food which has been 15 prepared for immediate consumption) and prescription and 16 nonprescription medicines, drugs, medical appliances and 17 insulin, urine testing materials, syringes and needles used 18 by diabetics. 19 Beginning January 1, 1990, each month the Department 20 shall pay into the County and Mass Transit District Fund 4% 21 of the net revenue realized for the preceding month from the 22 6.25% general rate on the selling price of tangible personal 23 property which is purchased outside Illinois at retail from a 24 retailer and which is titled or registered by an agency of 25 this State's government. 26 Beginning January 1, 1990, each month the Department 27 shall pay into the State and Local Sales Tax Reform Fund, a 28 special fund in the State Treasury, 20% of the net revenue 29 realized for the preceding month from the 6.25% general rate 30 on the selling price of tangible personal property, other 31 than tangible personal property which is purchased outside 32 Illinois at retail from a retailer and which is titled or 33 registered by an agency of this State's government. 34 Beginning November 1, 2000, and so long as the rate SB1310 Engrossed -16- LRB9110257SMdv 1 remains at 1.25%, each month the Department shall pay into 2 the County and Mass Transit District Fund 20% of the net 3 revenue realized for the preceding month from the 1.25% rate 4 on the selling price of motor fuel and gasohol. 5 Beginning January 1, 1990, each month the Department 6 shall pay into the Local Government Tax Fund 16% of the net 7 revenue realized for the preceding month from the 6.25% 8 general rate on the selling price of tangible personal 9 property which is purchased outside Illinois at retail from a 10 retailer and which is titled or registered by an agency of 11 this State's government. 12 Beginning November 1, 2000, and so long as the rate 13 remains at 1.25%, each month the Department shall pay into 14 the Local Government Tax Fund 80% of the net revenue realized 15 for the preceding month from the 1.25% rate on the selling 16 price of motor fuel and gasohol. 17 Of the remainder of the moneys received by the Department 18 pursuant to this Act, (a) 1.75% thereof shall be paid into 19 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 20 and on and after July 1, 1989, 3.8% thereof shall be paid 21 into the Build Illinois Fund; provided, however, that if in 22 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 23 as the case may be, of the moneys received by the Department 24 and required to be paid into the Build Illinois Fund pursuant 25 to Section 3 of the Retailers' Occupation Tax Act, Section 9 26 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 27 Section 9 of the Service Occupation Tax Act, such Acts being 28 hereinafter called the "Tax Acts" and such aggregate of 2.2% 29 or 3.8%, as the case may be, of moneys being hereinafter 30 called the "Tax Act Amount", and (2) the amount transferred 31 to the Build Illinois Fund from the State and Local Sales Tax 32 Reform Fund shall be less than the Annual Specified Amount 33 (as defined in Section 3 of the Retailers' Occupation Tax 34 Act), an amount equal to the difference shall be immediately SB1310 Engrossed -17- LRB9110257SMdv 1 paid into the Build Illinois Fund from other moneys received 2 by the Department pursuant to the Tax Acts; and further 3 provided, that if on the last business day of any month the 4 sum of (1) the Tax Act Amount required to be deposited into 5 the Build Illinois Bond Account in the Build Illinois Fund 6 during such month and (2) the amount transferred during such 7 month to the Build Illinois Fund from the State and Local 8 Sales Tax Reform Fund shall have been less than 1/12 of the 9 Annual Specified Amount, an amount equal to the difference 10 shall be immediately paid into the Build Illinois Fund from 11 other moneys received by the Department pursuant to the Tax 12 Acts; and, further provided, that in no event shall the 13 payments required under the preceding proviso result in 14 aggregate payments into the Build Illinois Fund pursuant to 15 this clause (b) for any fiscal year in excess of the greater 16 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 17 for such fiscal year; and, further provided, that the amounts 18 payable into the Build Illinois Fund under this clause (b) 19 shall be payable only until such time as the aggregate amount 20 on deposit under each trust indenture securing Bonds issued 21 and outstanding pursuant to the Build Illinois Bond Act is 22 sufficient, taking into account any future investment income, 23 to fully provide, in accordance with such indenture, for the 24 defeasance of or the payment of the principal of, premium, if 25 any, and interest on the Bonds secured by such indenture and 26 on any Bonds expected to be issued thereafter and all fees 27 and costs payable with respect thereto, all as certified by 28 the 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 the 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 SB1310 Engrossed -18- LRB9110257SMdv 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 preceding sentence and shall reduce the amount 9 otherwise payable for such fiscal year pursuant to clause (b) 10 of the preceding sentence. The moneys received by the 11 Department pursuant to this Act and required to be deposited 12 into the Build Illinois Fund are subject to the pledge, claim 13 and 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 the sums designated 22 as "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 SB1310 Engrossed -19- LRB9110257SMdv 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 108,000,000 10 2008 115,000,000 11 2009 120,000,000 12 2010 126,000,000 13 2011 132,000,000 14 2012 138,000,000 15 2013 and 145,000,000 16 each fiscal year 17 thereafter that bonds 18 are outstanding under 19 Section 13.2 of the 20 Metropolitan Pier and 21 Exposition Authority 22 Act, but not after fiscal year 2029. 23 Beginning July 20, 1993 and in each month of each fiscal 24 year thereafter, one-eighth of the amount requested in the 25 certificate of the Chairman of the Metropolitan Pier and 26 Exposition Authority for that fiscal year, less the amount 27 deposited into the McCormick Place Expansion Project Fund by 28 the State Treasurer in the respective month under subsection 29 (g) of Section 13 of the Metropolitan Pier and Exposition 30 Authority Act, plus cumulative deficiencies in the deposits 31 required under this Section for previous months and years, 32 shall be deposited into the McCormick Place Expansion Project 33 Fund, until the full amount requested for the fiscal year, 34 but not in excess of the amount specified above as "Total SB1310 Engrossed -20- LRB9110257SMdv 1 Deposit", has been deposited. 2 Subject to payment of amounts into the Build Illinois 3 Fund and the McCormick Place Expansion Project Fund pursuant 4 to the preceding paragraphs or in any amendment thereto 5 hereafter enacted, each month the Department shall pay into 6 the Local Government Distributive Fund .4% of the net revenue 7 realized for the preceding month from the 5% general rate, or 8 .4% of 80% of the net revenue realized for the preceding 9 month from the 6.25% general rate, as the case may be, on the 10 selling price of tangible personal property which amount 11 shall, subject to appropriation, be distributed as provided 12 in Section 2 of the State Revenue Sharing Act. No payments or 13 distributions pursuant to this paragraph shall be made if the 14 tax imposed by this Act on photoprocessing products is 15 declared unconstitutional, or if the proceeds from such tax 16 are unavailable for distribution because of litigation. 17 Subject to payment of amounts into the Build Illinois 18 Fund, the McCormick Place Expansion Project Fund, and the 19 Local Government Distributive Fund pursuant to the preceding 20 paragraphs or in any amendments thereto hereafter enacted, 21 beginning July 1, 1993, the Department shall each month pay 22 into the Illinois Tax Increment Fund 0.27% of 80% of the net 23 revenue realized for the preceding month from the 6.25% 24 general rate on the selling price of tangible personal 25 property. 26 Of the remainder of the moneys received by the Department 27 pursuant to this Act, 75% thereof shall be paid into the 28 State Treasury and 25% shall be reserved in a special account 29 and used only for the transfer to the Common School Fund as 30 part of the monthly transfer from the General Revenue Fund in 31 accordance with Section 8a of the State Finance Act. 32 As soon as possible after the first day of each month, 33 upon certification of the Department of Revenue, the 34 Comptroller shall order transferred and the Treasurer shall SB1310 Engrossed -21- LRB9110257SMdv 1 transfer from the General Revenue Fund to the Motor Fuel Tax 2 Fund an amount equal to 1.7% of 80% of the net revenue 3 realized under this Act for the second preceding month. 4 Beginning April 1, 2000, this transfer is no longer required 5 and shall not be made. 6 Net revenue realized for a month shall be the revenue 7 collected by the State pursuant to this Act, less the amount 8 paid out during that month as refunds to taxpayers for 9 overpayment of liability. 10 For greater simplicity of administration, manufacturers, 11 importers and wholesalers whose products are sold at retail 12 in Illinois by numerous retailers, and who wish to do so, may 13 assume the responsibility for accounting and paying to the 14 Department all tax accruing under this Act with respect to 15 such sales, if the retailers who are affected do not make 16 written objection to the Department to this arrangement. 17 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98; 18 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff. 19 7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.) 20 Section 10. The Service Use Tax Act is amended by 21 changing Sections 3-10 and 9 as follows: 22 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10) 23 Sec. 3-10. Rate of tax. Unless otherwise provided in 24 this Section, the tax imposed by this Act is at the rate of 25 6.25% of the selling price of tangible personal property 26 transferred as an incident to the sale of service, but, for 27 the purpose of computing this tax, in no event shall the 28 selling price be less than the cost price of the property to 29 the serviceman. 30 With respect to motor fuel, as defined in Section 1.1 of 31 the Motor Fuel Tax Law, and gasohol, as defined in Section 32 3-40 of the Use Tax Act, the tax is imposed at the rate of SB1310 Engrossed -22- LRB9110257SMdv 1 1.25%. If, however, the aggregate tax revenues from motor 2 fuel and gasohol under the Motor Fuel Tax Law during the 3 period from October 1, 2002 through September 30, 2003 are 4 not at least 15% more than the aggregate tax revenues from 5 motor fuel and gasohol under that Law during the period from 6 October 1, 1999 through September 30, 2000, then beginning 7 January 1, 2004 the tax is imposed on motor fuel and gasohol 8 at the 6.25% general rate. 9 With respect to gasohol, as defined in the Use Tax Act, 10 the tax imposed by this Act applies to 70% of the selling 11 price of property transferred as an incident to the sale of 12 service on or after January 1, 1990, and before July 1, 2003, 13 and to 100% of the selling price thereafter. 14 At the election of any registered serviceman made for 15 each fiscal year, sales of service in which the aggregate 16 annual cost price of tangible personal property transferred 17 as an incident to the sales of service is less than 35%, or 18 75% in the case of servicemen transferring prescription drugs 19 or servicemen engaged in graphic arts production, of the 20 aggregate annual total gross receipts from all sales of 21 service, the tax imposed by this Act shall be based on the 22 serviceman's cost price of the tangible personal property 23 transferred as an incident to the sale of those services. 24 The tax shall be imposed at the rate of 1% on food 25 prepared for immediate consumption and transferred incident 26 to a sale of service subject to this Act or the Service 27 Occupation Tax Act by an entity licensed under the Hospital 28 Licensing Act, the Nursing Home Care Act, or the Child Care 29 Act of 1969. The tax shall also be imposed at the rate of 1% 30 on food for human consumption that is to be consumed off the 31 premises where it is sold (other than alcoholic beverages, 32 soft drinks, and food that has been prepared for immediate 33 consumption and is not otherwise included in this paragraph) 34 and prescription and nonprescription medicines, drugs, SB1310 Engrossed -23- LRB9110257SMdv 1 medical appliances, modifications to a motor vehicle for the 2 purpose of rendering it usable by a disabled person, and 3 insulin, urine testing materials, syringes, and needles used 4 by diabetics, for human use. For the purposes of this 5 Section, the term "soft drinks" means any complete, finished, 6 ready-to-use, non-alcoholic drink, whether carbonated or not, 7 including but not limited to soda water, cola, fruit juice, 8 vegetable juice, carbonated water, and all other preparations 9 commonly known as soft drinks of whatever kind or description 10 that are contained in any closed or sealed bottle, can, 11 carton, or container, regardless of size. "Soft drinks" does 12 not include coffee, tea, non-carbonated water, infant 13 formula, milk or milk products as defined in the Grade A 14 Pasteurized Milk and Milk Products Act, or drinks containing 15 50% or more natural fruit or vegetable juice. 16 Notwithstanding any other provisions of this Act, "food 17 for human consumption that is to be consumed off the premises 18 where it is sold" includes all food sold through a vending 19 machine, except soft drinks and food products that are 20 dispensed hot from a vending machine, regardless of the 21 location of the vending machine. 22 If the property that is acquired from a serviceman is 23 acquired outside Illinois and used outside Illinois before 24 being brought to Illinois for use here and is taxable under 25 this Act, the "selling price" on which the tax is computed 26 shall be reduced by an amount that represents a reasonable 27 allowance for depreciation for the period of prior 28 out-of-state use. 29 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 30 91-51, eff. 6-30-99; 91-541, eff. 8-13-99.) 31 (35 ILCS 110/9) (from Ch. 120, par. 439.39) 32 Sec. 9. Each serviceman required or authorized to 33 collect the tax herein imposed shall pay to the Department SB1310 Engrossed -24- LRB9110257SMdv 1 the amount of such tax (except as otherwise provided) at the 2 time when he is required to file his return for the period 3 during which such tax was collected, less a discount of 2.1% 4 prior to January 1, 1990 and 1.75% on and after January 1, 5 1990, or $5 per calendar year, whichever is greater, which is 6 allowed to reimburse the serviceman for expenses incurred in 7 collecting the tax, keeping records, preparing and filing 8 returns, remitting the tax and supplying data to the 9 Department on request. A serviceman need not remit that part 10 of any tax collected by him to the extent that he is required 11 to pay and does pay the tax imposed by the Service Occupation 12 Tax Act with respect to his sale of service involving the 13 incidental transfer by him of the same property. 14 Except as provided hereinafter in this Section, on or 15 before the twentieth day of each calendar month, such 16 serviceman shall file a return for the preceding calendar 17 month in accordance with reasonable Rules and Regulations to 18 be promulgated by the Department. Such return shall be filed 19 on a form prescribed by the Department and shall contain such 20 information as the Department may reasonably require. 21 The Department may require returns to be filed on a 22 quarterly basis. If so required, a return for each calendar 23 quarter shall be filed on or before the twentieth day of the 24 calendar month following the end of such calendar quarter. 25 The taxpayer shall also file a return with the Department for 26 each of the first two months of each calendar quarter, on or 27 before the twentieth day of the following calendar month, 28 stating: 29 1. The name of the seller; 30 2. The address of the principal place of business 31 from which he engages in business as a serviceman in this 32 State; 33 3. The total amount of taxable receipts received by 34 him during the preceding calendar month, including SB1310 Engrossed -25- LRB9110257SMdv 1 receipts from charge and time sales, but less all 2 deductions allowed by law; 3 4. The amount of credit provided in Section 2d of 4 this Act; 5 5. The amount of tax due; 6 5-5. The signature of the taxpayer; and 7 6. Such other reasonable information as the 8 Department may require. 9 If a taxpayer fails to sign a return within 30 days after 10 the proper notice and demand for signature by the Department, 11 the return shall be considered valid and any amount shown to 12 be due on the return shall be deemed assessed. 13 Beginning October 1, 1993, a taxpayer who has an average 14 monthly tax liability of $150,000 or more shall make all 15 payments required by rules of the Department by electronic 16 funds transfer. Beginning October 1, 1994, a taxpayer who 17 has an average monthly tax liability of $100,000 or more 18 shall make all payments required by rules of the Department 19 by electronic funds transfer. Beginning October 1, 1995, a 20 taxpayer who has an average monthly tax liability of $50,000 21 or more shall make all payments required by rules of the 22 Department by electronic funds transfer. Beginning October 1, 23 2000, a taxpayer who has an annual tax liability of $200,000 24 or more shall make all payments required by rules of the 25 Department by electronic funds transfer. The term "annual 26 tax liability" shall be the sum of the taxpayer's liabilities 27 under this Act, and under all other State and local 28 occupation and use tax laws administered by the Department, 29 for the immediately preceding calendar year. The term 30 "average monthly tax liability" means the sum of the 31 taxpayer's liabilities under this Act, and under all other 32 State and local occupation and use tax laws administered by 33 the Department, for the immediately preceding calendar year 34 divided by 12. SB1310 Engrossed -26- LRB9110257SMdv 1 Before August 1 of each year beginning in 1993, the 2 Department shall notify all taxpayers required to make 3 payments by electronic funds transfer. All taxpayers required 4 to make payments by electronic funds transfer shall make 5 those payments for a minimum of one year beginning on October 6 1. 7 Any taxpayer not required to make payments by electronic 8 funds transfer may make payments by electronic funds transfer 9 with the permission of the Department. 10 All taxpayers required to make payment by electronic 11 funds transfer and any taxpayers authorized to voluntarily 12 make payments by electronic funds transfer shall make those 13 payments in the manner authorized by the Department. 14 The Department shall adopt such rules as are necessary to 15 effectuate a program of electronic funds transfer and the 16 requirements of this Section. 17 If the serviceman is otherwise required to file a monthly 18 return and if the serviceman's average monthly tax liability 19 to the Department does not exceed $200, the Department may 20 authorize his returns to be filed on a quarter annual basis, 21 with the return for January, February and March of a given 22 year being due by April 20 of such year; with the return for 23 April, May and June of a given year being due by July 20 of 24 such year; with the return for July, August and September of 25 a given year being due by October 20 of such year, and with 26 the return for October, November and December of a given year 27 being due by January 20 of the following year. 28 If the serviceman is otherwise required to file a monthly 29 or quarterly return and if the serviceman's average monthly 30 tax liability to the Department does not exceed $50, the 31 Department may authorize his returns to be filed on an annual 32 basis, with the return for a given year being due by January 33 20 of the following year. 34 Such quarter annual and annual returns, as to form and SB1310 Engrossed -27- LRB9110257SMdv 1 substance, shall be subject to the same requirements as 2 monthly returns. 3 Notwithstanding any other provision in this Act 4 concerning the time within which a serviceman may file his 5 return, in the case of any serviceman who ceases to engage in 6 a kind of business which makes him responsible for filing 7 returns under this Act, such serviceman shall file a final 8 return under this Act with the Department not more than 1 9 month after discontinuing such business. 10 Where a serviceman collects the tax with respect to the 11 selling price of property which he sells and the purchaser 12 thereafter returns such property and the serviceman refunds 13 the selling price thereof to the purchaser, such serviceman 14 shall also refund, to the purchaser, the tax so collected 15 from the purchaser. When filing his return for the period in 16 which he refunds such tax to the purchaser, the serviceman 17 may deduct the amount of the tax so refunded by him to the 18 purchaser from any other Service Use Tax, Service Occupation 19 Tax, retailers' occupation tax or use tax which such 20 serviceman may be required to pay or remit to the Department, 21 as shown by such return, provided that the amount of the tax 22 to be deducted shall previously have been remitted to the 23 Department by such serviceman. If the serviceman shall not 24 previously have remitted the amount of such tax to the 25 Department, he shall be entitled to no deduction hereunder 26 upon refunding such tax to the purchaser. 27 Any serviceman filing a return hereunder shall also 28 include the total tax upon the selling price of tangible 29 personal property purchased for use by him as an incident to 30 a sale of service, and such serviceman shall remit the amount 31 of such tax to the Department when filing such return. 32 If experience indicates such action to be practicable, 33 the Department may prescribe and furnish a combination or 34 joint return which will enable servicemen, who are required SB1310 Engrossed -28- LRB9110257SMdv 1 to file returns hereunder and also under the Service 2 Occupation Tax Act, to furnish all the return information 3 required by both Acts on the one form. 4 Where the serviceman has more than one business 5 registered with the Department under separate registration 6 hereunder, such serviceman shall not file each return that is 7 due as a single return covering all such registered 8 businesses, but shall file separate returns for each such 9 registered business. 10 Beginning January 1, 1990, each month the Department 11 shall pay into the State and Local Tax Reform Fund, a special 12 fund in the State Treasury, the net revenue realized for the 13 preceding month from the 1% tax on sales of food for human 14 consumption which is to be consumed off the premises where it 15 is sold (other than alcoholic beverages, soft drinks and food 16 which has been prepared for immediate consumption) and 17 prescription and nonprescription medicines, drugs, medical 18 appliances and insulin, urine testing materials, syringes and 19 needles used by diabetics. 20 Beginning November 1, 2000, and so long as the rate 21 remains at 1.25%, each month the Department shall pay into 22 the County and Mass Transit District Fund 20% of the net 23 revenue realized for the preceding month from the 1.25% rate 24 on the selling price of motor fuel and gasohol. 25 Beginning January 1, 1990, each month the Department 26 shall pay into the State and Local Sales Tax Reform Fund 20% 27 of the net revenue realized for the preceding month from the 28 6.25% general rate on transfers of tangible personal 29 property, other than tangible personal property which is 30 purchased outside Illinois at retail from a retailer and 31 which is titled or registered by an agency of this State's 32 government. 33 Beginning November 1, 2000, and so long as the rate 34 remains at 1.25%, each month the Department shall pay into SB1310 Engrossed -29- LRB9110257SMdv 1 the Local Government Tax Fund 80% of the net revenue realized 2 for the preceding month from the 1.25% rate on the selling 3 price of motor fuel and gasohol. 4 Of the remainder of the moneys received by the Department 5 pursuant to this Act, (a) 1.75% thereof shall be paid into 6 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 7 and on and after July 1, 1989, 3.8% thereof shall be paid 8 into the Build Illinois Fund; provided, however, that if in 9 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 10 as the case may be, of the moneys received by the Department 11 and required to be paid into the Build Illinois Fund pursuant 12 to Section 3 of the Retailers' Occupation Tax Act, Section 9 13 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 14 Section 9 of the Service Occupation Tax Act, such Acts being 15 hereinafter called the "Tax Acts" and such aggregate of 2.2% 16 or 3.8%, as the case may be, of moneys being hereinafter 17 called the "Tax Act Amount", and (2) the amount transferred 18 to the Build Illinois Fund from the State and Local Sales Tax 19 Reform Fund shall be less than the Annual Specified Amount 20 (as defined in Section 3 of the Retailers' Occupation Tax 21 Act), an amount equal to the difference shall be immediately 22 paid into the Build Illinois Fund from other moneys received 23 by the Department pursuant to the Tax Acts; and further 24 provided, that if on the last business day of any month the 25 sum of (1) the Tax Act Amount required to be deposited into 26 the Build Illinois Bond Account in the Build Illinois Fund 27 during such month and (2) the amount transferred during such 28 month to the Build Illinois Fund from the State and Local 29 Sales Tax Reform Fund shall have been less than 1/12 of the 30 Annual Specified Amount, an amount equal to the difference 31 shall be immediately paid into the Build Illinois Fund from 32 other moneys received by the Department pursuant to the Tax 33 Acts; and, further provided, that in no event shall the 34 payments required under the preceding proviso result in SB1310 Engrossed -30- LRB9110257SMdv 1 aggregate payments into the Build Illinois Fund pursuant to 2 this clause (b) for any fiscal year in excess of the greater 3 of (i) the Tax Act Amount or (ii) the Annual Specified Amount 4 for such fiscal year; and, further provided, that the amounts 5 payable into the Build Illinois Fund under this clause (b) 6 shall be payable only until such time as the aggregate amount 7 on deposit under each trust indenture securing Bonds issued 8 and outstanding pursuant to the Build Illinois Bond Act is 9 sufficient, taking into account any future investment income, 10 to fully provide, in accordance with such indenture, for the 11 defeasance of or the payment of the principal of, premium, if 12 any, and interest on the Bonds secured by such indenture and 13 on any Bonds expected to be issued thereafter and all fees 14 and costs payable with respect thereto, all as certified by 15 the Director of the Bureau of the Budget. If on the last 16 business day of any month in which Bonds are outstanding 17 pursuant to the Build Illinois Bond Act, the aggregate of the 18 moneys deposited in the Build Illinois Bond Account in the 19 Build Illinois Fund in such month shall be less than the 20 amount required to be transferred in such month from the 21 Build Illinois Bond Account to the Build Illinois Bond 22 Retirement and Interest Fund pursuant to Section 13 of the 23 Build Illinois Bond Act, an amount equal to such deficiency 24 shall be immediately paid from other moneys received by the 25 Department pursuant to the Tax Acts to the Build Illinois 26 Fund; provided, however, that any amounts paid to the Build 27 Illinois Fund in any fiscal year pursuant to this sentence 28 shall be deemed to constitute payments pursuant to clause (b) 29 of the preceding sentence and shall reduce the amount 30 otherwise payable for such fiscal year pursuant to clause (b) 31 of the preceding sentence. The moneys received by the 32 Department pursuant to this Act and required to be deposited 33 into the Build Illinois Fund are subject to the pledge, claim 34 and charge set forth in Section 12 of the Build Illinois Bond SB1310 Engrossed -31- LRB9110257SMdv 1 Act. 2 Subject to payment of amounts into the Build Illinois 3 Fund as provided in the preceding paragraph or in any 4 amendment thereto hereafter enacted, the following specified 5 monthly installment of the amount requested in the 6 certificate of the Chairman of the Metropolitan Pier and 7 Exposition Authority provided under Section 8.25f of the 8 State Finance Act, but not in excess of the sums designated 9 as "Total Deposit", shall be deposited in the aggregate from 10 collections under Section 9 of the Use Tax Act, Section 9 of 11 the Service Use Tax Act, Section 9 of the Service Occupation 12 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 13 into the McCormick Place Expansion Project Fund in the 14 specified fiscal years. 15 Fiscal Year Total Deposit 16 1993 $0 17 1994 53,000,000 18 1995 58,000,000 19 1996 61,000,000 20 1997 64,000,000 21 1998 68,000,000 22 1999 71,000,000 23 2000 75,000,000 24 2001 80,000,000 25 2002 84,000,000 26 2003 89,000,000 27 2004 93,000,000 28 2005 97,000,000 29 2006 102,000,000 30 2007 108,000,000 31 2008 115,000,000 32 2009 120,000,000 33 2010 126,000,000 34 2011 132,000,000 SB1310 Engrossed -32- LRB9110257SMdv 1 2012 138,000,000 2 2013 and 145,000,000 3 each fiscal year 4 thereafter that bonds 5 are outstanding under 6 Section 13.2 of the 7 Metropolitan Pier and 8 Exposition Authority Act, 9 but not after fiscal year 2029. 10 Beginning July 20, 1993 and in each month of each fiscal 11 year thereafter, one-eighth of the amount requested in the 12 certificate of the Chairman of the Metropolitan Pier and 13 Exposition Authority for that fiscal year, less the amount 14 deposited into the McCormick Place Expansion Project Fund by 15 the State Treasurer in the respective month under subsection 16 (g) of Section 13 of the Metropolitan Pier and Exposition 17 Authority Act, plus cumulative deficiencies in the deposits 18 required under this Section for previous months and years, 19 shall be deposited into the McCormick Place Expansion Project 20 Fund, until the full amount requested for the fiscal year, 21 but not in excess of the amount specified above as "Total 22 Deposit", has been deposited. 23 Subject to payment of amounts into the Build Illinois 24 Fund and the McCormick Place Expansion Project Fund pursuant 25 to the preceding paragraphs or in any amendment thereto 26 hereafter enacted, each month the Department shall pay into 27 the Local Government Distributive Fund 0.4% of the net 28 revenue realized for the preceding month from the 5% general 29 rate or 0.4% of 80% of the net revenue realized for the 30 preceding month from the 6.25% general rate, as the case may 31 be, on the selling price of tangible personal property which 32 amount shall, subject to appropriation, be distributed as 33 provided in Section 2 of the State Revenue Sharing Act. No 34 payments or distributions pursuant to this paragraph shall be SB1310 Engrossed -33- LRB9110257SMdv 1 made if the tax imposed by this Act on photo processing 2 products is declared unconstitutional, or if the proceeds 3 from such tax are unavailable for distribution because of 4 litigation. 5 Subject to payment of amounts into the Build Illinois 6 Fund, the McCormick Place Expansion Project Fund, and the 7 Local Government Distributive Fund pursuant to the preceding 8 paragraphs or in any amendments thereto hereafter enacted, 9 beginning July 1, 1993, the Department shall each month pay 10 into the Illinois Tax Increment Fund 0.27% of 80% of the net 11 revenue realized for the preceding month from the 6.25% 12 general rate on the selling price of tangible personal 13 property. 14 All remaining moneys received by the Department pursuant 15 to this Act shall be paid into the General Revenue Fund of 16 the State Treasury. 17 As soon as possible after the first day of each month, 18 upon certification of the Department of Revenue, the 19 Comptroller shall order transferred and the Treasurer shall 20 transfer from the General Revenue Fund to the Motor Fuel Tax 21 Fund an amount equal to 1.7% of 80% of the net revenue 22 realized under this Act for the second preceding month. 23 Beginning April 1, 2000, this transfer is no longer required 24 and shall not be made. 25 Net revenue realized for a month shall be the revenue 26 collected by the State pursuant to this Act, less the amount 27 paid out during that month as refunds to taxpayers for 28 overpayment of liability. 29 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51, 30 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 31 revised 9-27-99.) 32 Section 15. The Service Occupation Tax Act is amended by 33 changing Sections 3-10 and 9 as follows: SB1310 Engrossed -34- LRB9110257SMdv 1 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10) 2 Sec. 3-10. Rate of tax. Unless otherwise provided in 3 this Section, the tax imposed by this Act is at the rate of 4 6.25% of the "selling price", as defined in Section 2 of the 5 Service Use Tax Act, of the tangible personal property. For 6 the purpose of computing this tax, in no event shall the 7 "selling price" be less than the cost price to the serviceman 8 of the tangible personal property transferred. The selling 9 price of each item of tangible personal property transferred 10 as an incident of a sale of service may be shown as a 11 distinct and separate item on the serviceman's billing to the 12 service customer. If the selling price is not so shown, the 13 selling price of the tangible personal property is deemed to 14 be 50% of the serviceman's entire billing to the service 15 customer. When, however, a serviceman contracts to design, 16 develop, and produce special order machinery or equipment, 17 the tax imposed by this Act shall be based on the 18 serviceman's cost price of the tangible personal property 19 transferred incident to the completion of the contract. 20 With respect to motor fuel, as defined in Section 1.1 of 21 the Motor Fuel Tax Law, and gasohol, as defined in Section 22 3-40 of the Use Tax Act, the tax is imposed at the rate of 23 1.25%. If, however, the aggregate tax revenues from motor 24 fuel and gasohol under the Motor Fuel Tax Law during the 25 period from October 1, 2002 through September 30, 2003 are 26 not at least 15% more than the aggregate tax revenues from 27 motor fuel and gasohol under that Law during the period from 28 October 1, 1999 through September 30, 2000, then beginning 29 January 1, 2004 the tax is imposed on motor fuel and gasohol 30 at the 6.25% general rate. 31 With respect to gasohol, as defined in the Use Tax Act, 32 the tax imposed by this Act shall apply to 70% of the cost 33 price of property transferred as an incident to the sale of 34 service on or after January 1, 1990, and before July 1, 2003, SB1310 Engrossed -35- LRB9110257SMdv 1 and to 100% of the cost price thereafter. 2 At the election of any registered serviceman made for 3 each fiscal year, sales of service in which the aggregate 4 annual cost price of tangible personal property transferred 5 as an incident to the sales of service is less than 35%, or 6 75% in the case of servicemen transferring prescription drugs 7 or servicemen engaged in graphic arts production, of the 8 aggregate annual total gross receipts from all sales of 9 service, the tax imposed by this Act shall be based on the 10 serviceman's cost price of the tangible personal property 11 transferred incident to the sale of those services. 12 The tax shall be imposed at the rate of 1% on food 13 prepared for immediate consumption and transferred incident 14 to a sale of service subject to this Act or the Service 15 Occupation Tax Act by an entity licensed under the Hospital 16 Licensing Act, the Nursing Home Care Act, or the Child Care 17 Act of 1969. The tax shall also be imposed at the rate of 1% 18 on food for human consumption that is to be consumed off the 19 premises where it is sold (other than alcoholic beverages, 20 soft drinks, and food that has been prepared for immediate 21 consumption and is not otherwise included in this paragraph) 22 and prescription and nonprescription medicines, drugs, 23 medical appliances, modifications to a motor vehicle for the 24 purpose of rendering it usable by a disabled person, and 25 insulin, urine testing materials, syringes, and needles used 26 by diabetics, for human use. For the purposes of this 27 Section, the term "soft drinks" means any complete, finished, 28 ready-to-use, non-alcoholic drink, whether carbonated or not, 29 including but not limited to soda water, cola, fruit juice, 30 vegetable juice, carbonated water, and all other preparations 31 commonly known as soft drinks of whatever kind or description 32 that are contained in any closed or sealed can, carton, or 33 container, regardless of size. "Soft drinks" does not 34 include coffee, tea, non-carbonated water, infant formula, SB1310 Engrossed -36- LRB9110257SMdv 1 milk or milk products as defined in the Grade A Pasteurized 2 Milk and Milk Products Act, or drinks containing 50% or more 3 natural fruit or vegetable juice. 4 Notwithstanding any other provisions of this Act, "food 5 for human consumption that is to be consumed off the premises 6 where it is sold" includes all food sold through a vending 7 machine, except soft drinks and food products that are 8 dispensed hot from a vending machine, regardless of the 9 location of the vending machine. 10 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 11 91-51, 6-30-99; 91-541, eff. 8-13-99.) 12 (35 ILCS 115/9) (from Ch. 120, par. 439.109) 13 Sec. 9. Each serviceman required or authorized to 14 collect the tax herein imposed shall pay to the Department 15 the amount of such tax at the time when he is required to 16 file his return for the period during which such tax was 17 collectible, less a discount of 2.1% prior to January 1, 18 1990, and 1.75% on and after January 1, 1990, or $5 per 19 calendar year, whichever is greater, which is allowed to 20 reimburse the serviceman for expenses incurred in collecting 21 the tax, keeping records, preparing and filing returns, 22 remitting the tax and supplying data to the Department on 23 request. 24 Where such tangible personal property is sold under a 25 conditional sales contract, or under any other form of sale 26 wherein the payment of the principal sum, or a part thereof, 27 is extended beyond the close of the period for which the 28 return is filed, the serviceman, in collecting the tax may 29 collect, for each tax return period, only the tax applicable 30 to the part of the selling price actually received during 31 such tax return period. 32 Except as provided hereinafter in this Section, on or 33 before the twentieth day of each calendar month, such SB1310 Engrossed -37- LRB9110257SMdv 1 serviceman shall file a return for the preceding calendar 2 month in accordance with reasonable rules and regulations to 3 be promulgated by the Department of Revenue. Such return 4 shall be filed on a form prescribed by the Department and 5 shall contain such information as the Department may 6 reasonably require. 7 The Department may require returns to be filed on a 8 quarterly basis. If so required, a return for each calendar 9 quarter shall be filed on or before the twentieth day of the 10 calendar month following the end of such calendar quarter. 11 The taxpayer shall also file a return with the Department for 12 each of the first two months of each calendar quarter, on or 13 before the twentieth day of the following calendar month, 14 stating: 15 1. The name of the seller; 16 2. The address of the principal place of business 17 from which he engages in business as a serviceman in this 18 State; 19 3. The total amount of taxable receipts received by 20 him during the preceding calendar month, including 21 receipts from charge and time sales, but less all 22 deductions allowed by law; 23 4. The amount of credit provided in Section 2d of 24 this Act; 25 5. The amount of tax due; 26 5-5. The signature of the taxpayer; and 27 6. Such other reasonable information as the 28 Department may require. 29 If a taxpayer fails to sign a return within 30 days after 30 the proper notice and demand for signature by the Department, 31 the return shall be considered valid and any amount shown to 32 be due on the return shall be deemed assessed. 33 A serviceman may accept a Manufacturer's Purchase Credit 34 certification from a purchaser in satisfaction of Service Use SB1310 Engrossed -38- LRB9110257SMdv 1 Tax as provided in Section 3-70 of the Service Use Tax Act if 2 the purchaser provides the appropriate documentation as 3 required by Section 3-70 of the Service Use Tax Act. A 4 Manufacturer's Purchase Credit certification, accepted by a 5 serviceman as provided in Section 3-70 of the Service Use Tax 6 Act, may be used by that serviceman to satisfy Service 7 Occupation Tax liability in the amount claimed in the 8 certification, not to exceed 6.25% of the receipts subject to 9 tax from a qualifying purchase. 10 If the serviceman's average monthly tax liability to the 11 Department does not exceed $200, the Department may authorize 12 his returns to be filed on a quarter annual basis, with the 13 return for January, February and March of a given year being 14 due by April 20 of such year; with the return for April, May 15 and June of a given year being due by July 20 of such year; 16 with the return for July, August and September of a given 17 year being due by October 20 of such year, and with the 18 return for October, November and December of a given year 19 being due by January 20 of the following year. 20 If the serviceman's average monthly tax liability to the 21 Department does not exceed $50, the Department may authorize 22 his returns to be filed on an annual basis, with the return 23 for a given year being due by January 20 of the following 24 year. 25 Such quarter annual and annual returns, as to form and 26 substance, shall be subject to the same requirements as 27 monthly returns. 28 Notwithstanding any other provision in this Act 29 concerning the time within which a serviceman may file his 30 return, in the case of any serviceman who ceases to engage in 31 a kind of business which makes him responsible for filing 32 returns under this Act, such serviceman shall file a final 33 return under this Act with the Department not more than 1 34 month after discontinuing such business. SB1310 Engrossed -39- LRB9110257SMdv 1 Beginning October 1, 1993, a taxpayer who has an average 2 monthly tax liability of $150,000 or more shall make all 3 payments required by rules of the Department by electronic 4 funds transfer. Beginning October 1, 1994, a taxpayer who 5 has an average monthly tax liability of $100,000 or more 6 shall make all payments required by rules of the Department 7 by electronic funds transfer. Beginning October 1, 1995, a 8 taxpayer who has an average monthly tax liability of $50,000 9 or more shall make all payments required by rules of the 10 Department by electronic funds transfer. Beginning October 11 1, 2000, a taxpayer who has an annual tax liability of 12 $200,000 or more shall make all payments required by rules of 13 the Department by electronic funds transfer. The term 14 "annual tax liability" shall be the sum of the taxpayer's 15 liabilities under this Act, and under all other State and 16 local occupation and use tax laws administered by the 17 Department, for the immediately preceding calendar year. The 18 term "average monthly tax liability" means the sum of the 19 taxpayer's liabilities under this Act, and under all other 20 State and local occupation and use tax laws administered by 21 the Department, for the immediately preceding calendar year 22 divided by 12. 23 Before August 1 of each year beginning in 1993, the 24 Department shall notify all taxpayers required to make 25 payments by electronic funds transfer. All taxpayers 26 required to make payments by electronic funds transfer shall 27 make those payments for a minimum of one year beginning on 28 October 1. 29 Any taxpayer not required to make payments by electronic 30 funds transfer may make payments by electronic funds transfer 31 with the permission of the Department. 32 All taxpayers required to make payment by electronic 33 funds transfer and any taxpayers authorized to voluntarily 34 make payments by electronic funds transfer shall make those SB1310 Engrossed -40- LRB9110257SMdv 1 payments in the manner authorized by the Department. 2 The Department shall adopt such rules as are necessary to 3 effectuate a program of electronic funds transfer and the 4 requirements of this Section. 5 Where a serviceman collects the tax with respect to the 6 selling price of tangible personal property which he sells 7 and the purchaser thereafter returns such tangible personal 8 property and the serviceman refunds the selling price thereof 9 to the purchaser, such serviceman shall also refund, to the 10 purchaser, the tax so collected from the purchaser. When 11 filing his return for the period in which he refunds such tax 12 to the purchaser, the serviceman may deduct the amount of the 13 tax so refunded by him to the purchaser from any other 14 Service Occupation Tax, Service Use Tax, Retailers' 15 Occupation Tax or Use Tax which such serviceman may be 16 required to pay or remit to the Department, as shown by such 17 return, provided that the amount of the tax to be deducted 18 shall previously have been remitted to the Department by such 19 serviceman. If the serviceman shall not previously have 20 remitted the amount of such tax to the Department, he shall 21 be entitled to no deduction hereunder upon refunding such tax 22 to the purchaser. 23 If experience indicates such action to be practicable, 24 the Department may prescribe and furnish a combination or 25 joint return which will enable servicemen, who are required 26 to file returns hereunder and also under the Retailers' 27 Occupation Tax Act, the Use Tax Act or the Service Use Tax 28 Act, to furnish all the return information required by all 29 said Acts on the one form. 30 Where the serviceman has more than one business 31 registered with the Department under separate registrations 32 hereunder, such serviceman shall file separate returns for 33 each registered business. 34 Beginning January 1, 1990, each month the Department SB1310 Engrossed -41- LRB9110257SMdv 1 shall pay into the Local Government Tax Fund the revenue 2 realized for the preceding month from the 1% tax on sales of 3 food for human consumption which is to be consumed off the 4 premises where it is sold (other than alcoholic beverages, 5 soft drinks and food which has been prepared for immediate 6 consumption) and prescription and nonprescription medicines, 7 drugs, medical appliances and insulin, urine testing 8 materials, syringes and needles used by diabetics. 9 Beginning January 1, 1990, each month the Department 10 shall pay into the County and Mass Transit District Fund 4% 11 of the revenue realized for the preceding month from the 12 6.25% general rate. 13 Beginning November 1, 2000, and so long as the rate 14 remains at 1.25%, each month the Department shall pay into 15 the County and Mass Transit District Fund 20% of the net 16 revenue realized for the preceding month from the 1.25% rate 17 on the selling price of motor fuel and gasohol. 18 Beginning January 1, 1990, each month the Department 19 shall pay into the Local Government Tax Fund 16% of the 20 revenue realized for the preceding month from the 6.25% 21 general rate on transfers of tangible personal property. 22 Beginning November 1, 2000, and so long as the rate 23 remains at 1.25%, each month the Department shall pay into 24 the Local Government Tax Fund 80% of the net revenue realized 25 for the preceding month from the 1.25% rate on the selling 26 price of motor fuel and gasohol. 27 Of the remainder of the moneys received by the Department 28 pursuant to this Act, (a) 1.75% thereof shall be paid into 29 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 30 and on and after July 1, 1989, 3.8% thereof shall be paid 31 into the Build Illinois Fund; provided, however, that if in 32 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 33 as the case may be, of the moneys received by the Department 34 and required to be paid into the Build Illinois Fund pursuant SB1310 Engrossed -42- LRB9110257SMdv 1 to Section 3 of the Retailers' Occupation Tax Act, Section 9 2 of the Use Tax Act, Section 9 of the Service Use Tax Act, and 3 Section 9 of the Service Occupation Tax Act, such Acts being 4 hereinafter called the "Tax Acts" and such aggregate of 2.2% 5 or 3.8%, as the case may be, of moneys being hereinafter 6 called the "Tax Act Amount", and (2) the amount transferred 7 to the Build Illinois Fund from the State and Local Sales Tax 8 Reform Fund shall be less than the Annual Specified Amount 9 (as defined in Section 3 of the Retailers' Occupation Tax 10 Act), an amount equal to the difference shall be immediately 11 paid into the Build Illinois Fund from other moneys received 12 by the Department pursuant to the Tax Acts; and further 13 provided, that if on the last business day of any month the 14 sum of (1) the Tax Act Amount required to be deposited into 15 the Build Illinois Account in the Build Illinois Fund during 16 such month and (2) the amount transferred during such month 17 to the Build Illinois Fund from the State and Local Sales Tax 18 Reform Fund shall have been less than 1/12 of the Annual 19 Specified Amount, an amount equal to the difference shall be 20 immediately paid into the Build Illinois Fund from other 21 moneys received by the Department pursuant to the Tax Acts; 22 and, further provided, that in no event shall the payments 23 required under the preceding proviso result in aggregate 24 payments into the Build Illinois Fund pursuant to this clause 25 (b) for any fiscal year in excess of the greater of (i) the 26 Tax Act Amount or (ii) the Annual Specified Amount for such 27 fiscal year; and, further provided, that the amounts payable 28 into the Build Illinois Fund under this clause (b) shall be 29 payable only until such time as the aggregate amount on 30 deposit under each trust indenture securing Bonds issued and 31 outstanding pursuant to the Build Illinois Bond Act is 32 sufficient, taking into account any future investment income, 33 to fully provide, in accordance with such indenture, for the 34 defeasance of or the payment of the principal of, premium, if SB1310 Engrossed -43- LRB9110257SMdv 1 any, and interest on the Bonds secured by such indenture and 2 on any Bonds expected to be issued thereafter and all fees 3 and costs payable with respect thereto, all as certified by 4 the Director of the Bureau of the Budget. If on the last 5 business day of any month in which Bonds are outstanding 6 pursuant to the Build Illinois Bond Act, the aggregate of the 7 moneys deposited in the Build Illinois Bond Account in the 8 Build Illinois Fund in such month shall be less than the 9 amount required to be transferred in such month from the 10 Build Illinois Bond Account to the Build Illinois Bond 11 Retirement and Interest Fund pursuant to Section 13 of the 12 Build Illinois Bond Act, an amount equal to such deficiency 13 shall be immediately paid from other moneys received by the 14 Department pursuant to the Tax Acts to the Build Illinois 15 Fund; provided, however, that any amounts paid to the Build 16 Illinois Fund in any fiscal year pursuant to this sentence 17 shall be deemed to constitute payments pursuant to clause (b) 18 of the preceding sentence and shall reduce the amount 19 otherwise payable for such fiscal year pursuant to clause (b) 20 of the preceding sentence. The moneys received by the 21 Department pursuant to this Act and required to be deposited 22 into the Build Illinois Fund are subject to the pledge, claim 23 and charge set forth in Section 12 of the Build Illinois Bond 24 Act. 25 Subject to payment of amounts into the Build Illinois 26 Fund as provided in the preceding paragraph or in any 27 amendment thereto hereafter enacted, the following specified 28 monthly installment of the amount requested in the 29 certificate of the Chairman of the Metropolitan Pier and 30 Exposition Authority provided under Section 8.25f of the 31 State Finance Act, but not in excess of the sums designated 32 as "Total Deposit", shall be deposited in the aggregate from 33 collections under Section 9 of the Use Tax Act, Section 9 of 34 the Service Use Tax Act, Section 9 of the Service Occupation SB1310 Engrossed -44- LRB9110257SMdv 1 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 2 into the McCormick Place Expansion Project Fund in the 3 specified fiscal years. 4 Fiscal Year Total Deposit 5 1993 $0 6 1994 53,000,000 7 1995 58,000,000 8 1996 61,000,000 9 1997 64,000,000 10 1998 68,000,000 11 1999 71,000,000 12 2000 75,000,000 13 2001 80,000,000 14 2002 84,000,000 15 2003 89,000,000 16 2004 93,000,000 17 2005 97,000,000 18 2006 102,000,000 19 2007 108,000,000 20 2008 115,000,000 21 2009 120,000,000 22 2010 126,000,000 23 2011 132,000,000 24 2012 138,000,000 25 2013 and 145,000,000 26 each fiscal year 27 thereafter that bonds 28 are outstanding under 29 Section 13.2 of the 30 Metropolitan Pier and 31 Exposition Authority 32 Act, but not after fiscal year 2029. 33 Beginning July 20, 1993 and in each month of each fiscal 34 year thereafter, one-eighth of the amount requested in the SB1310 Engrossed -45- LRB9110257SMdv 1 certificate of the Chairman of the Metropolitan Pier and 2 Exposition Authority for that fiscal year, less the amount 3 deposited into the McCormick Place Expansion Project Fund by 4 the State Treasurer in the respective month under subsection 5 (g) of Section 13 of the Metropolitan Pier and Exposition 6 Authority Act, plus cumulative deficiencies in the deposits 7 required under this Section for previous months and years, 8 shall be deposited into the McCormick Place Expansion Project 9 Fund, until the full amount requested for the fiscal year, 10 but not in excess of the amount specified above as "Total 11 Deposit", has been deposited. 12 Subject to payment of amounts into the Build Illinois 13 Fund and the McCormick Place Expansion Project Fund pursuant 14 to the preceding paragraphs or in any amendment thereto 15 hereafter enacted, each month the Department shall pay into 16 the Local Government Distributive Fund 0.4% of the net 17 revenue realized for the preceding month from the 5% general 18 rate or 0.4% of 80% of the net revenue realized for the 19 preceding month from the 6.25% general rate, as the case may 20 be, on the selling price of tangible personal property which 21 amount shall, subject to appropriation, be distributed as 22 provided in Section 2 of the State Revenue Sharing Act. No 23 payments or distributions pursuant to this paragraph shall be 24 made if the tax imposed by this Act on photoprocessing 25 products is declared unconstitutional, or if the proceeds 26 from such tax are unavailable for distribution because of 27 litigation. 28 Subject to payment of amounts into the Build Illinois 29 Fund, the McCormick Place Expansion Project Fund, and the 30 Local Government Distributive Fund pursuant to the preceding 31 paragraphs or in any amendments thereto hereafter enacted, 32 beginning July 1, 1993, the Department shall each month pay 33 into the Illinois Tax Increment Fund 0.27% of 80% of the net 34 revenue realized for the preceding month from the 6.25% SB1310 Engrossed -46- LRB9110257SMdv 1 general rate on the selling price of tangible personal 2 property. 3 Remaining moneys received by the Department pursuant to 4 this Act shall be paid into the General Revenue Fund of the 5 State Treasury. 6 The Department may, upon separate written notice to a 7 taxpayer, require the taxpayer to prepare and file with the 8 Department on a form prescribed by the Department within not 9 less than 60 days after receipt of the notice an annual 10 information return for the tax year specified in the notice. 11 Such annual return to the Department shall include a 12 statement of gross receipts as shown by the taxpayer's last 13 Federal income tax return. If the total receipts of the 14 business as reported in the Federal income tax return do not 15 agree with the gross receipts reported to the Department of 16 Revenue for the same period, the taxpayer shall attach to his 17 annual return a schedule showing a reconciliation of the 2 18 amounts and the reasons for the difference. The taxpayer's 19 annual return to the Department shall also disclose the cost 20 of goods sold by the taxpayer during the year covered by such 21 return, opening and closing inventories of such goods for 22 such year, cost of goods used from stock or taken from stock 23 and given away by the taxpayer during such year, pay roll 24 information of the taxpayer's business during such year and 25 any additional reasonable information which the Department 26 deems would be helpful in determining the accuracy of the 27 monthly, quarterly or annual returns filed by such taxpayer 28 as hereinbefore provided for in this Section. 29 If the annual information return required by this Section 30 is not filed when and as required, the taxpayer shall be 31 liable as follows: 32 (i) Until January 1, 1994, the taxpayer shall be 33 liable for a penalty equal to 1/6 of 1% of the tax due 34 from such taxpayer under this Act during the period to be SB1310 Engrossed -47- LRB9110257SMdv 1 covered by the annual return for each month or fraction 2 of a month until such return is filed as required, the 3 penalty to be assessed and collected in the same manner 4 as any other penalty provided for in this Act. 5 (ii) On and after January 1, 1994, the taxpayer 6 shall be liable for a penalty as described in Section 3-4 7 of the Uniform Penalty and Interest Act. 8 The chief executive officer, proprietor, owner or highest 9 ranking manager shall sign the annual return to certify the 10 accuracy of the information contained therein. Any person 11 who willfully signs the annual return containing false or 12 inaccurate information shall be guilty of perjury and 13 punished accordingly. The annual return form prescribed by 14 the Department shall include a warning that the person 15 signing the return may be liable for perjury. 16 The foregoing portion of this Section concerning the 17 filing of an annual information return shall not apply to a 18 serviceman who is not required to file an income tax return 19 with the United States Government. 20 As soon as possible after the first day of each month, 21 upon certification of the Department of Revenue, the 22 Comptroller shall order transferred and the Treasurer shall 23 transfer from the General Revenue Fund to the Motor Fuel Tax 24 Fund an amount equal to 1.7% of 80% of the net revenue 25 realized under this Act for the second preceding month. 26 Beginning April 1, 2000, this transfer is no longer required 27 and shall not be made. 28 Net revenue realized for a month shall be the revenue 29 collected by the State pursuant to this Act, less the amount 30 paid out during that month as refunds to taxpayers for 31 overpayment of liability. 32 For greater simplicity of administration, it shall be 33 permissible for manufacturers, importers and wholesalers 34 whose products are sold by numerous servicemen in Illinois, SB1310 Engrossed -48- LRB9110257SMdv 1 and who wish to do so, to assume the responsibility for 2 accounting and paying to the Department all tax accruing 3 under this Act with respect to such sales, if the servicemen 4 who are affected do not make written objection to the 5 Department to this arrangement. 6 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51, 7 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99; 8 revised 9-28-99.) 9 Section 20. The Retailers' Occupation Tax Act is amended 10 by changing Sections 2-10, 2d, and 3 as follows: 11 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10) 12 Sec. 2-10. Rate of tax. Unless otherwise provided in 13 this Section, the tax imposed by this Act is at the rate of 14 6.25% of gross receipts from sales of tangible personal 15 property made in the course of business. 16 With respect to motor fuel, as defined in Section 1.1 of 17 the Motor Fuel Tax Law, and gasohol, as defined in Section 18 3-40 of the Use Tax Act, the tax is imposed at the rate of 19 1.25%. If, however, the aggregate tax revenues from motor 20 fuel and gasohol under the Motor Fuel Tax Law during the 21 period from October 1, 2002 through September 30, 2003 are 22 not at least 15% more than the aggregate tax revenues from 23 motor fuel and gasohol under that Law during the period from 24 October 1, 1999 through September 30, 2000, then beginning 25 January 1, 2004 the tax is imposed on motor fuel and gasohol 26 at the 6.25% general rate. 27 With respect to gasohol, as defined in the Use Tax Act, 28 the tax imposed by this Act applies to 70% of the proceeds of 29 sales made on or after January 1, 1990, and before July 1, 30 2003, and to 100% of the proceeds of sales made thereafter. 31 With respect to food for human consumption that is to be 32 consumed off the premises where it is sold (other than SB1310 Engrossed -49- LRB9110257SMdv 1 alcoholic beverages, soft drinks, and food that has been 2 prepared for immediate consumption) and prescription and 3 nonprescription medicines, drugs, medical appliances, 4 modifications to a motor vehicle for the purpose of rendering 5 it usable by a disabled person, and insulin, urine testing 6 materials, syringes, and needles used by diabetics, for human 7 use, the tax is imposed at the rate of 1%. For the purposes 8 of this Section, the term "soft drinks" means any complete, 9 finished, ready-to-use, non-alcoholic drink, whether 10 carbonated or not, including but not limited to soda water, 11 cola, fruit juice, vegetable juice, carbonated water, and all 12 other preparations commonly known as soft drinks of whatever 13 kind or description that are contained in any closed or 14 sealed bottle, can, carton, or container, regardless of size. 15 "Soft drinks" does not include coffee, tea, non-carbonated 16 water, infant formula, milk or milk products as defined in 17 the Grade A Pasteurized Milk and Milk Products Act, or drinks 18 containing 50% or more natural fruit or vegetable juice. 19 Notwithstanding any other provisions of this Act, "food 20 for human consumption that is to be consumed off the premises 21 where it is sold" includes all food sold through a vending 22 machine, except soft drinks and food products that are 23 dispensed hot from a vending machine, regardless of the 24 location of the vending machine. 25 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98; 26 91-51, eff. 6-30-99.) 27 (35 ILCS 120/2d) (from Ch. 120, par. 441d) 28 Sec. 2d. Tax prepayment by motor fuel retailer. Any 29 person engaged in the business of selling motor fuel at 30 retail, as defined in the Motor Fuel Tax Law, and who is not 31 a licensed distributor or supplier, as defined in the Motor 32 Fuel Tax Law, shall prepay to his or her distributor, 33 supplier, or other reseller of motor fuel a portion of the SB1310 Engrossed -50- LRB9110257SMdv 1 tax imposed by this Act if the distributor, supplier, or 2 other reseller of motor fuel is registered under Section 2a 3 or Section 2c of this Act. The prepayment requirement 4 provided for in this Section does not apply to liquid propane 5 gas. 6 The Retailers' Occupation Tax paid to the distributor, 7 supplier, or other reseller shall be an amount equal to 0.8 8 cents$0.04per gallon of the motor fuel, except gasohol as 9 defined in Section 2-10 of this Act which shall be an amount 10 equal to 0.6 cents$0.03per gallon, purchased from the 11 distributor, supplier, or other reseller. If, as a result of 12 the provisions of this amendatory Act of the 91st General 13 Assembly, the rate of tax imposed on the sale of motor fuel 14 and gasohol by the Retailers' Occupation Tax Act returns to 15 6.25%, then the Retailers' Occupation Tax paid to the 16 distributor, supplier, or other reseller shall be an amount 17 equal to $0.04 per gallon of the motor fuel, except gasohol 18 as defined in Section 2-10 of this Act which shall be an 19 amount equal to $0.03 per gallon, purchased from the 20 distributor, supplier, or other reseller. 21 Any person engaged in the business of selling motor fuel 22 at retail shall be entitled to a credit against tax due under 23 this Act in an amount equal to the tax paid to the 24 distributor, supplier, or other reseller. 25 Every distributor, supplier, or other reseller registered 26 as provided in Section 2a or Section 2c of this Act shall 27 remit the prepaid tax on all motor fuel that is due from any 28 person engaged in the business of selling at retail motor 29 fuel with the returns filed under Section 2f or Section 3 of 30 this Act, but the vendors discount provided in Section 3 31 shall not apply to the amount of prepaid tax that is 32 remitted. Any distributor or supplier who fails to properly 33 collect and remit the tax shall be liable for the tax. For 34 purposes of this Section, the prepaid tax is due on invoiced SB1310 Engrossed -51- LRB9110257SMdv 1 gallons sold during a month by the 20th day of the following 2 month. 3 (Source: P.A. 86-1475; 87-14.) 4 (35 ILCS 120/3) (from Ch. 120, par. 442) 5 Sec. 3. Except as provided in this Section, on or before 6 the twentieth day of each calendar month, every person 7 engaged in the business of selling tangible personal property 8 at retail in this State during the preceding calendar month 9 shall file a return with the Department, stating: 10 1. The name of the seller; 11 2. His residence address and the address of his 12 principal place of business and the address of the 13 principal place of business (if that is a different 14 address) from which he engages in the business of selling 15 tangible personal property at retail in this State; 16 3. Total amount of receipts received by him during 17 the preceding calendar month or quarter, as the case may 18 be, from sales of tangible personal property, and from 19 services furnished, by him during such preceding calendar 20 month or quarter; 21 4. Total amount received by him during the 22 preceding calendar month or quarter on charge and time 23 sales of tangible personal property, and from services 24 furnished, by him prior to the month or quarter for which 25 the return is filed; 26 5. Deductions allowed by law; 27 6. Gross receipts which were received by him during 28 the preceding calendar month or quarter and upon the 29 basis of which the tax is imposed; 30 7. The amount of credit provided in Section 2d of 31 this Act; 32 8. The amount of tax due; 33 9. The signature of the taxpayer; and SB1310 Engrossed -52- LRB9110257SMdv 1 10. Such other reasonable information as the 2 Department may require. 3 If a taxpayer fails to sign a return within 30 days after 4 the proper notice and demand for signature by the Department, 5 the return shall be considered valid and any amount shown to 6 be due on the return shall be deemed assessed. 7 Each return shall be accompanied by the statement of 8 prepaid tax issued pursuant to Section 2e for which credit is 9 claimed. 10 A retailer may accept a Manufacturer's Purchase Credit 11 certification from a purchaser in satisfaction of Use Tax as 12 provided in Section 3-85 of the Use Tax Act if the purchaser 13 provides the appropriate documentation as required by Section 14 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit 15 certification, accepted by a retailer as provided in Section 16 3-85 of the Use Tax Act, may be used by that retailer to 17 satisfy Retailers' Occupation Tax liability in the amount 18 claimed in the certification, not to exceed 6.25% of the 19 receipts subject to tax from a qualifying purchase. 20 The Department may require returns to be filed on a 21 quarterly basis. If so required, a return for each calendar 22 quarter shall be filed on or before the twentieth day of the 23 calendar month following the end of such calendar quarter. 24 The taxpayer shall also file a return with the Department for 25 each of the first two months of each calendar quarter, on or 26 before the twentieth day of the following calendar month, 27 stating: 28 1. The name of the seller; 29 2. The address of the principal place of business 30 from which he engages in the business of selling tangible 31 personal property at retail in this State; 32 3. The total amount of taxable receipts received by 33 him during the preceding calendar month from sales of 34 tangible personal property by him during such preceding SB1310 Engrossed -53- LRB9110257SMdv 1 calendar month, including receipts from charge and time 2 sales, but less all deductions allowed by law; 3 4. The amount of credit provided in Section 2d of 4 this Act; 5 5. The amount of tax due; and 6 6. Such other reasonable information as the 7 Department may require. 8 If a total amount of less than $1 is payable, refundable 9 or creditable, such amount shall be disregarded if it is less 10 than 50 cents and shall be increased to $1 if it is 50 cents 11 or more. 12 Beginning October 1, 1993, a taxpayer who has an average 13 monthly tax liability of $150,000 or more shall make all 14 payments required by rules of the Department by electronic 15 funds transfer. Beginning October 1, 1994, a taxpayer who 16 has an average monthly tax liability of $100,000 or more 17 shall make all payments required by rules of the Department 18 by electronic funds transfer. Beginning October 1, 1995, a 19 taxpayer who has an average monthly tax liability of $50,000 20 or more shall make all payments required by rules of the 21 Department by electronic funds transfer. Beginning October 22 1, 2000, a taxpayer who has an annual tax liability of 23 $200,000 or more shall make all payments required by rules of 24 the Department by electronic funds transfer. The term 25 "annual tax liability" shall be the sum of the taxpayer's 26 liabilities under this Act, and under all other State and 27 local occupation and use tax laws administered by the 28 Department, for the immediately preceding calendar year. The 29 term "average monthly tax liability" shall be the sum of the 30 taxpayer's liabilities under this Act, and under all other 31 State and local occupation and use tax laws administered by 32 the Department, for the immediately preceding calendar year 33 divided by 12. 34 Before August 1 of each year beginning in 1993, the SB1310 Engrossed -54- LRB9110257SMdv 1 Department shall notify all taxpayers required to make 2 payments by electronic funds transfer. All taxpayers 3 required to make payments by electronic funds transfer shall 4 make those payments for a minimum of one year beginning on 5 October 1. 6 Any taxpayer not required to make payments by electronic 7 funds transfer may make payments by electronic funds transfer 8 with the permission of the Department. 9 All taxpayers required to make payment by electronic 10 funds transfer and any taxpayers authorized to voluntarily 11 make payments by electronic funds transfer shall make those 12 payments in the manner authorized by the Department. 13 The Department shall adopt such rules as are necessary to 14 effectuate a program of electronic funds transfer and the 15 requirements of this Section. 16 Any amount which is required to be shown or reported on 17 any return or other document under this Act shall, if such 18 amount is not a whole-dollar amount, be increased to the 19 nearest whole-dollar amount in any case where the fractional 20 part of a dollar is 50 cents or more, and decreased to the 21 nearest whole-dollar amount where the fractional part of a 22 dollar is less than 50 cents. 23 If the retailer is otherwise required to file a monthly 24 return and if the retailer's average monthly tax liability to 25 the Department does not exceed $200, the Department may 26 authorize his returns to be filed on a quarter annual basis, 27 with the return for January, February and March of a given 28 year being due by April 20 of such year; with the return for 29 April, May and June of a given year being due by July 20 of 30 such year; with the return for July, August and September of 31 a given year being due by October 20 of such year, and with 32 the return for October, November and December of a given year 33 being due by January 20 of the following year. 34 If the retailer is otherwise required to file a monthly SB1310 Engrossed -55- LRB9110257SMdv 1 or quarterly return and if the retailer's average monthly tax 2 liability with the Department does not exceed $50, the 3 Department may authorize his returns to be filed on an annual 4 basis, with the return for a given year being due by January 5 20 of the following year. 6 Such quarter annual and annual returns, as to form and 7 substance, shall be subject to the same requirements as 8 monthly returns. 9 Notwithstanding any other provision in this Act 10 concerning the time within which a retailer may file his 11 return, in the case of any retailer who ceases to engage in a 12 kind of business which makes him responsible for filing 13 returns under this Act, such retailer shall file a final 14 return under this Act with the Department not more than one 15 month after discontinuing such business. 16 Where the same person has more than one business 17 registered with the Department under separate registrations 18 under this Act, such person may not file each return that is 19 due as a single return covering all such registered 20 businesses, but shall file separate returns for each such 21 registered business. 22 In addition, with respect to motor vehicles, watercraft, 23 aircraft, and trailers that are required to be registered 24 with an agency of this State, every retailer selling this 25 kind of tangible personal property shall file, with the 26 Department, upon a form to be prescribed and supplied by the 27 Department, a separate return for each such item of tangible 28 personal property which the retailer sells, except that 29 where, in the same transaction, a retailer of aircraft, 30 watercraft, motor vehicles or trailers transfers more than 31 one aircraft, watercraft, motor vehicle or trailer to another 32 aircraft, watercraft, motor vehicle retailer or trailer 33 retailer for the purpose of resale, that seller for resale 34 may report the transfer of all aircraft, watercraft, motor SB1310 Engrossed -56- LRB9110257SMdv 1 vehicles or trailers involved in that transaction to the 2 Department on the same uniform invoice-transaction reporting 3 return form. For purposes of this Section, "watercraft" 4 means a Class 2, Class 3, or Class 4 watercraft as defined in 5 Section 3-2 of the Boat Registration and Safety Act, a 6 personal watercraft, or any boat equipped with an inboard 7 motor. 8 Any retailer who sells only motor vehicles, watercraft, 9 aircraft, or trailers that are required to be registered with 10 an agency of this State, so that all retailers' occupation 11 tax liability is required to be reported, and is reported, on 12 such transaction reporting returns and who is not otherwise 13 required to file monthly or quarterly returns, need not file 14 monthly or quarterly returns. However, those retailers shall 15 be required to file returns on an annual basis. 16 The transaction reporting return, in the case of motor 17 vehicles or trailers that are required to be registered with 18 an agency of this State, shall be the same document as the 19 Uniform Invoice referred to in Section 5-402 of The Illinois 20 Vehicle Code and must show the name and address of the 21 seller; the name and address of the purchaser; the amount of 22 the selling price including the amount allowed by the 23 retailer for traded-in property, if any; the amount allowed 24 by the retailer for the traded-in tangible personal property, 25 if any, to the extent to which Section 1 of this Act allows 26 an exemption for the value of traded-in property; the balance 27 payable after deducting such trade-in allowance from the 28 total selling price; the amount of tax due from the retailer 29 with respect to such transaction; the amount of tax collected 30 from the purchaser by the retailer on such transaction (or 31 satisfactory evidence that such tax is not due in that 32 particular instance, if that is claimed to be the fact); the 33 place and date of the sale; a sufficient identification of 34 the property sold; such other information as is required in SB1310 Engrossed -57- LRB9110257SMdv 1 Section 5-402 of The Illinois Vehicle Code, and such other 2 information as the Department may reasonably require. 3 The transaction reporting return in the case of 4 watercraft or aircraft must show the name and address of the 5 seller; the name and address of the purchaser; the amount of 6 the selling price including the amount allowed by the 7 retailer for traded-in property, if any; the amount allowed 8 by the retailer for the traded-in tangible personal property, 9 if any, to the extent to which Section 1 of this Act allows 10 an exemption for the value of traded-in property; the balance 11 payable after deducting such trade-in allowance from the 12 total selling price; the amount of tax due from the retailer 13 with respect to such transaction; the amount of tax collected 14 from the purchaser by the retailer on such transaction (or 15 satisfactory evidence that such tax is not due in that 16 particular instance, if that is claimed to be the fact); the 17 place and date of the sale, a sufficient identification of 18 the property sold, and such other information as the 19 Department may reasonably require. 20 Such transaction reporting return shall be filed not 21 later than 20 days after the day of delivery of the item that 22 is being sold, but may be filed by the retailer at any time 23 sooner than that if he chooses to do so. The transaction 24 reporting return and tax remittance or proof of exemption 25 from the Illinois use tax may be transmitted to the 26 Department by way of the State agency with which, or State 27 officer with whom the tangible personal property must be 28 titled or registered (if titling or registration is required) 29 if the Department and such agency or State officer determine 30 that this procedure will expedite the processing of 31 applications for title or registration. 32 With each such transaction reporting return, the retailer 33 shall remit the proper amount of tax due (or shall submit 34 satisfactory evidence that the sale is not taxable if that is SB1310 Engrossed -58- LRB9110257SMdv 1 the case), to the Department or its agents, whereupon the 2 Department shall issue, in the purchaser's name, a use tax 3 receipt (or a certificate of exemption if the Department is 4 satisfied that the particular sale is tax exempt) which such 5 purchaser may submit to the agency with which, or State 6 officer with whom, he must title or register the tangible 7 personal property that is involved (if titling or 8 registration is required) in support of such purchaser's 9 application for an Illinois certificate or other evidence of 10 title or registration to such tangible personal property. 11 No retailer's failure or refusal to remit tax under this 12 Act precludes a user, who has paid the proper tax to the 13 retailer, from obtaining his certificate of title or other 14 evidence of title or registration (if titling or registration 15 is required) upon satisfying the Department that such user 16 has paid the proper tax (if tax is due) to the retailer. The 17 Department shall adopt appropriate rules to carry out the 18 mandate of this paragraph. 19 If the user who would otherwise pay tax to the retailer 20 wants the transaction reporting return filed and the payment 21 of the tax or proof of exemption made to the Department 22 before the retailer is willing to take these actions and such 23 user has not paid the tax to the retailer, such user may 24 certify to the fact of such delay by the retailer and may 25 (upon the Department being satisfied of the truth of such 26 certification) transmit the information required by the 27 transaction reporting return and the remittance for tax or 28 proof of exemption directly to the Department and obtain his 29 tax receipt or exemption determination, in which event the 30 transaction reporting return and tax remittance (if a tax 31 payment was required) shall be credited by the Department to 32 the proper retailer's account with the Department, but 33 without the 2.1% or 1.75% discount provided for in this 34 Section being allowed. When the user pays the tax directly SB1310 Engrossed -59- LRB9110257SMdv 1 to the Department, he shall pay the tax in the same amount 2 and in the same form in which it would be remitted if the tax 3 had been remitted to the Department by the retailer. 4 Refunds made by the seller during the preceding return 5 period to purchasers, on account of tangible personal 6 property returned to the seller, shall be allowed as a 7 deduction under subdivision 5 of his monthly or quarterly 8 return, as the case may be, in case the seller had 9 theretofore included the receipts from the sale of such 10 tangible personal property in a return filed by him and had 11 paid the tax imposed by this Act with respect to such 12 receipts. 13 Where the seller is a corporation, the return filed on 14 behalf of such corporation shall be signed by the president, 15 vice-president, secretary or treasurer or by the properly 16 accredited agent of such corporation. 17 Where the seller is a limited liability company, the 18 return filed on behalf of the limited liability company shall 19 be signed by a manager, member, or properly accredited agent 20 of the limited liability company. 21 Except as provided in this Section, the retailer filing 22 the return under this Section shall, at the time of filing 23 such return, pay to the Department the amount of tax imposed 24 by this Act less a discount of 2.1% prior to January 1, 1990 25 and 1.75% on and after January 1, 1990, or $5 per calendar 26 year, whichever is greater, which is allowed to reimburse the 27 retailer for the expenses incurred in keeping records, 28 preparing and filing returns, remitting the tax and supplying 29 data to the Department on request. Any prepayment made 30 pursuant to Section 2d of this Act shall be included in the 31 amount on which such 2.1% or 1.75% discount is computed. In 32 the case of retailers who report and pay the tax on a 33 transaction by transaction basis, as provided in this 34 Section, such discount shall be taken with each such tax SB1310 Engrossed -60- LRB9110257SMdv 1 remittance instead of when such retailer files his periodic 2 return. 3 Before October 1, 2000, if the taxpayer's average monthly 4 tax liability to the Department under this Act, the Use Tax 5 Act, the Service Occupation Tax Act, and the Service Use Tax 6 Act, excluding any liability for prepaid sales tax to be 7 remitted in accordance with Section 2d of this Act, was 8 $10,000 or more during the preceding 4 complete calendar 9 quarters, he shall file a return with the Department each 10 month by the 20th day of the month next following the month 11 during which such tax liability is incurred and shall make 12 payments to the Department on or before the 7th, 15th, 22nd 13 and last day of the month during which such liability is 14 incurred. On and after October 1, 2000, if the taxpayer's 15 average monthly tax liability to the Department under this 16 Act, the Use Tax Act, the Service Occupation Tax Act, and the 17 Service Use Tax Act, excluding any liability for prepaid 18 sales tax to be remitted in accordance with Section 2d of 19 this Act, was $20,000 or more during the preceding 4 complete 20 calendar quarters, he shall file a return with the Department 21 each month by the 20th day of the month next following the 22 month during which such tax liability is incurred and shall 23 make payment to the Department on or before the 7th, 15th, 24 22nd and last day of the month during which such liability is 25 incurred. If the month during which such tax liability is 26 incurred began prior to January 1, 1985, each payment shall 27 be in an amount equal to 1/4 of the taxpayer's actual 28 liability for the month or an amount set by the Department 29 not to exceed 1/4 of the average monthly liability of the 30 taxpayer to the Department for the preceding 4 complete 31 calendar quarters (excluding the month of highest liability 32 and the month of lowest liability in such 4 quarter period). 33 If the month during which such tax liability is incurred 34 begins on or after January 1, 1985 and prior to January 1, SB1310 Engrossed -61- LRB9110257SMdv 1 1987, each payment shall be in an amount equal to 22.5% of 2 the taxpayer's actual liability for the month or 27.5% of the 3 taxpayer's liability for the same calendar month of the 4 preceding year. If the month during which such tax liability 5 is incurred begins on or after January 1, 1987 and prior to 6 January 1, 1988, each payment shall be in an amount equal to 7 22.5% of the taxpayer's actual liability for the month or 8 26.25% of the taxpayer's liability for the same calendar 9 month of the preceding year. If the month during which such 10 tax liability is incurred begins on or after January 1, 1988, 11 and prior to January 1, 1989, or begins on or after January 12 1, 1996, each payment shall be in an amount equal to 22.5% of 13 the taxpayer's actual liability for the month or 25% of the 14 taxpayer's liability for the same calendar month of the 15 preceding year. If the month during which such tax liability 16 is incurred begins on or after January 1, 1989, and prior to 17 January 1, 1996, each payment shall be in an amount equal to 18 22.5% of the taxpayer's actual liability for the month or 25% 19 of the taxpayer's liability for the same calendar month of 20 the preceding year or 100% of the taxpayer's actual liability 21 for the quarter monthly reporting period. The amount of such 22 quarter monthly payments shall be credited against the final 23 tax liability of the taxpayer's return for that month. 24 Before October 1, 2000, once applicable, the requirement of 25 the making of quarter monthly payments to the Department by 26 taxpayers having an average monthly tax liability of $10,000 27 or more as determined in the manner provided above shall 28 continue until such taxpayer's average monthly liability to 29 the Department during the preceding 4 complete calendar 30 quarters (excluding the month of highest liability and the 31 month of lowest liability) is less than $9,000, or until such 32 taxpayer's average monthly liability to the Department as 33 computed for each calendar quarter of the 4 preceding 34 complete calendar quarter period is less than $10,000. SB1310 Engrossed -62- LRB9110257SMdv 1 However, if a taxpayer can show the Department that a 2 substantial change in the taxpayer's business has occurred 3 which causes the taxpayer to anticipate that his average 4 monthly tax liability for the reasonably foreseeable future 5 will fall below the $10,000 threshold stated above, then such 6 taxpayer may petition the Department for a change in such 7 taxpayer's reporting status. On and after October 1, 2000, 8 once applicable, the requirement of the making of quarter 9 monthly payments to the Department by taxpayers having an 10 average monthly tax liability of $20,000 or more as 11 determined in the manner provided above shall continue until 12 such taxpayer's average monthly liability to the Department 13 during the preceding 4 complete calendar quarters (excluding 14 the month of highest liability and the month of lowest 15 liability) is less than $19,000 or until such taxpayer's 16 average monthly liability to the Department as computed for 17 each calendar quarter of the 4 preceding complete calendar 18 quarter period is less than $20,000. However, if a taxpayer 19 can show the Department that a substantial change in the 20 taxpayer's business has occurred which causes the taxpayer to 21 anticipate that his average monthly tax liability for the 22 reasonably foreseeable future will fall below the $20,000 23 threshold stated above, then such taxpayer may petition the 24 Department for a change in such taxpayer's reporting status. 25 The Department shall change such taxpayer's reporting status 26 unless it finds that such change is seasonal in nature and 27 not likely to be long term. If any such quarter monthly 28 payment is not paid at the time or in the amount required by 29 this Section, then the taxpayer shall be liable for penalties 30 and interest on the difference between the minimum amount due 31 as a payment and the amount of such quarter monthly payment 32 actually and timely paid, except insofar as the taxpayer has 33 previously made payments for that month to the Department in 34 excess of the minimum payments previously due as provided in SB1310 Engrossed -63- LRB9110257SMdv 1 this Section. The Department shall make reasonable rules and 2 regulations to govern the quarter monthly payment amount and 3 quarter monthly payment dates for taxpayers who file on other 4 than a calendar monthly basis. 5 Without regard to whether a taxpayer is required to make 6 quarter monthly payments as specified above, any taxpayer who 7 is required by Section 2d of this Act to collect and remit 8 prepaid taxes and has collected prepaid taxes which average 9 in excess of $25,000 per month during the preceding 2 10 complete calendar quarters, shall file a return with the 11 Department as required by Section 2f and shall make payments 12 to the Department on or before the 7th, 15th, 22nd and last 13 day of the month during which such liability is incurred. If 14 the month during which such tax liability is incurred began 15 prior to the effective date of this amendatory Act of 1985, 16 each payment shall be in an amount not less than 22.5% of the 17 taxpayer's actual liability under Section 2d. If the month 18 during which such tax liability is incurred begins on or 19 after January 1, 1986, each payment shall be in an amount 20 equal to 22.5% of the taxpayer's actual liability for the 21 month or 27.5% of the taxpayer's liability for the same 22 calendar month of the preceding calendar year. If the month 23 during which such tax liability is incurred begins on or 24 after January 1, 1987, each payment shall be in an amount 25 equal to 22.5% of the taxpayer's actual liability for the 26 month or 26.25% of the taxpayer's liability for the same 27 calendar month of the preceding year. The amount of such 28 quarter monthly payments shall be credited against the final 29 tax liability of the taxpayer's return for that month filed 30 under this Section or Section 2f, as the case may be. Once 31 applicable, the requirement of the making of quarter monthly 32 payments to the Department pursuant to this paragraph shall 33 continue until such taxpayer's average monthly prepaid tax 34 collections during the preceding 2 complete calendar quarters SB1310 Engrossed -64- LRB9110257SMdv 1 is $25,000 or less. If any such quarter monthly payment is 2 not paid at the time or in the amount required, the taxpayer 3 shall be liable for penalties and interest on such 4 difference, except insofar as the taxpayer has previously 5 made payments for that month in excess of the minimum 6 payments previously due. 7 If any payment provided for in this Section exceeds the 8 taxpayer's liabilities under this Act, the Use Tax Act, the 9 Service Occupation Tax Act and the Service Use Tax Act, as 10 shown on an original monthly return, the Department shall, if 11 requested by the taxpayer, issue to the taxpayer a credit 12 memorandum no later than 30 days after the date of payment. 13 The credit evidenced by such credit memorandum may be 14 assigned by the taxpayer to a similar taxpayer under this 15 Act, the Use Tax Act, the Service Occupation Tax Act or the 16 Service Use Tax Act, in accordance with reasonable rules and 17 regulations to be prescribed by the Department. If no such 18 request is made, the taxpayer may credit such excess payment 19 against tax liability subsequently to be remitted to the 20 Department under this Act, the Use Tax Act, the Service 21 Occupation Tax Act or the Service Use Tax Act, in accordance 22 with reasonable rules and regulations prescribed by the 23 Department. If the Department subsequently determined that 24 all or any part of the credit taken was not actually due to 25 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount 26 shall be reduced by 2.1% or 1.75% of the difference between 27 the credit taken and that actually due, and that taxpayer 28 shall be liable for penalties and interest on such 29 difference. 30 If a retailer of motor fuel is entitled to a credit under 31 Section 2d of this Act which exceeds the taxpayer's liability 32 to the Department under this Act for the month which the 33 taxpayer is filing a return, the Department shall issue the 34 taxpayer a credit memorandum for the excess. SB1310 Engrossed -65- LRB9110257SMdv 1 Beginning January 1, 1990, each month the Department 2 shall pay into the Local Government Tax Fund, a special fund 3 in the State treasury which is hereby created, the net 4 revenue realized for the preceding month from the 1% tax on 5 sales of food for human consumption which is to be consumed 6 off the premises where it is sold (other than alcoholic 7 beverages, soft drinks and food which has been prepared for 8 immediate consumption) and prescription and nonprescription 9 medicines, drugs, medical appliances and insulin, urine 10 testing materials, syringes and needles used by diabetics. 11 Beginning January 1, 1990, each month the Department 12 shall pay into the County and Mass Transit District Fund, a 13 special fund in the State treasury which is hereby created, 14 4% of the net revenue realized for the preceding month from 15 the 6.25% general rate. 16 Beginning November 1, 2000, and so long as the rate 17 remains at 1.25%, each month the Department shall pay into 18 the County and Mass Transit District Fund 20% of the net 19 revenue realized for the preceding month from the 1.25% rate 20 on the selling price of motor fuel and gasohol. 21 Beginning January 1, 1990, each month the Department 22 shall pay into the Local Government Tax Fund 16% of the net 23 revenue realized for the preceding month from the 6.25% 24 general rate on the selling price of tangible personal 25 property. 26 Beginning November 1, 2000, and so long as the rate 27 remains at 1.25%, each month the Department shall pay into 28 the Local Government Tax Fund 80% of the net revenue realized 29 for the preceding month from the 1.25% rate on the selling 30 price of motor fuel and gasohol. 31 Of the remainder of the moneys received by the Department 32 pursuant to this Act, (a) 1.75% thereof shall be paid into 33 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2% 34 and on and after July 1, 1989, 3.8% thereof shall be paid SB1310 Engrossed -66- LRB9110257SMdv 1 into the Build Illinois Fund; provided, however, that if in 2 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%, 3 as the case may be, of the moneys received by the Department 4 and required to be paid into the Build Illinois Fund pursuant 5 to this Act, Section 9 of the Use Tax Act, Section 9 of the 6 Service Use Tax Act, and Section 9 of the Service Occupation 7 Tax Act, such Acts being hereinafter called the "Tax Acts" 8 and such aggregate of 2.2% or 3.8%, as the case may be, of 9 moneys being hereinafter called the "Tax Act Amount", and (2) 10 the amount transferred to the Build Illinois Fund from the 11 State and Local Sales Tax Reform Fund shall be less than the 12 Annual Specified Amount (as hereinafter defined), an amount 13 equal to the difference shall be immediately paid into the 14 Build Illinois Fund from other moneys received by the 15 Department pursuant to the Tax Acts; the "Annual Specified 16 Amount" means the amounts specified below for fiscal years 17 1986 through 1993: 18 Fiscal Year Annual Specified Amount 19 1986 $54,800,000 20 1987 $76,650,000 21 1988 $80,480,000 22 1989 $88,510,000 23 1990 $115,330,000 24 1991 $145,470,000 25 1992 $182,730,000 26 1993 $206,520,000; 27 and means the Certified Annual Debt Service Requirement (as 28 defined in Section 13 of the Build Illinois Bond Act) or the 29 Tax Act Amount, whichever is greater, for fiscal year 1994 30 and each fiscal year thereafter; and further provided, that 31 if on the last business day of any month the sum of (1) the 32 Tax Act Amount required to be deposited into the Build 33 Illinois Bond Account in the Build Illinois Fund during such 34 month and (2) the amount transferred to the Build Illinois SB1310 Engrossed -67- LRB9110257SMdv 1 Fund from the State and Local Sales Tax Reform Fund shall 2 have been less than 1/12 of the Annual Specified Amount, an 3 amount equal to the difference shall be immediately paid into 4 the Build Illinois Fund from other moneys received by the 5 Department pursuant to the Tax Acts; and, further provided, 6 that in no event shall the payments required under the 7 preceding proviso result in aggregate payments into the Build 8 Illinois Fund pursuant to this clause (b) for any fiscal year 9 in excess of the greater of (i) the Tax Act Amount or (ii) 10 the Annual Specified Amount for such fiscal year. The 11 amounts payable into the Build Illinois Fund under clause (b) 12 of the first sentence in this paragraph shall be payable only 13 until such time as the aggregate amount on deposit under each 14 trust indenture securing Bonds issued and outstanding 15 pursuant to the Build Illinois Bond Act is sufficient, taking 16 into account any future investment income, to fully provide, 17 in accordance with such indenture, for the defeasance of or 18 the payment of the principal of, premium, if any, and 19 interest on the Bonds secured by such indenture and on any 20 Bonds expected to be issued thereafter and all fees and costs 21 payable with respect thereto, all as certified by the 22 Director of the Bureau of the Budget. If on the last 23 business day of any month in which Bonds are outstanding 24 pursuant to the Build Illinois Bond Act, the aggregate of 25 moneys deposited in the Build Illinois Bond Account in the 26 Build Illinois Fund in such month shall be less than the 27 amount required to be transferred in such month from the 28 Build Illinois Bond Account to the Build Illinois Bond 29 Retirement and Interest Fund pursuant to Section 13 of the 30 Build Illinois Bond Act, an amount equal to such deficiency 31 shall be immediately paid from other moneys received by the 32 Department pursuant to the Tax Acts to the Build Illinois 33 Fund; provided, however, that any amounts paid to the Build 34 Illinois Fund in any fiscal year pursuant to this sentence SB1310 Engrossed -68- LRB9110257SMdv 1 shall be deemed to constitute payments pursuant to clause (b) 2 of the first sentence of this paragraph and shall reduce the 3 amount otherwise payable for such fiscal year pursuant to 4 that clause (b). The moneys received by the Department 5 pursuant to this Act and required to be deposited into the 6 Build Illinois Fund are subject to the pledge, claim and 7 charge set forth in Section 12 of the Build Illinois Bond 8 Act. 9 Subject to payment of amounts into the Build Illinois 10 Fund as provided in the preceding paragraph or in any 11 amendment thereto hereafter enacted, the following specified 12 monthly installment of the amount requested in the 13 certificate of the Chairman of the Metropolitan Pier and 14 Exposition Authority provided under Section 8.25f of the 15 State Finance Act, but not in excess of sums designated as 16 "Total Deposit", shall be deposited in the aggregate from 17 collections under Section 9 of the Use Tax Act, Section 9 of 18 the Service Use Tax Act, Section 9 of the Service Occupation 19 Tax Act, and Section 3 of the Retailers' Occupation Tax Act 20 into the McCormick Place Expansion Project Fund in the 21 specified fiscal years. 22 Fiscal Year Total Deposit 23 1993 $0 24 1994 53,000,000 25 1995 58,000,000 26 1996 61,000,000 27 1997 64,000,000 28 1998 68,000,000 29 1999 71,000,000 30 2000 75,000,000 31 2001 80,000,000 32 2002 84,000,000 33 2003 89,000,000 34 2004 93,000,000 SB1310 Engrossed -69- LRB9110257SMdv 1 2005 97,000,000 2 2006 102,000,000 3 2007 108,000,000 4 2008 115,000,000 5 2009 120,000,000 6 2010 126,000,000 7 2011 132,000,000 8 2012 138,000,000 9 2013 and 145,000,000 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 SB1310 Engrossed -70- LRB9110257SMdv 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 SB1310 Engrossed -71- LRB9110257SMdv 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 SB1310 Engrossed -72- LRB9110257SMdv 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 Beginning April 1, 2000, this transfer is no longer required 13 and shall not be made. 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 SB1310 Engrossed -73- LRB9110257SMdv 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. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98; 30 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff. 31 7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.) 32 Section 22. The Motor Fuel Tax Law is amended by 33 changing Section 13a as follows: SB1310 Engrossed -74- LRB9110257SMdv 1 (35 ILCS 505/13a) (from Ch. 120, par. 429a) 2 Sec. 13a. (1) A tax is hereby imposed upon the use of 3 motor fuel upon highways of this State by commercial motor 4 vehicles. The tax shall be comprised of 2 parts. Part (a) 5 shall be at the rate established by Section 2 of this Act, as 6 heretofore or hereafter amended. Part (b) shall be at the 7 rate established by subsection (2) of this Section as now or 8 hereafter amended. 9 (2) A rate shall be established by the Department as of 10 January 1 of each year using the average "selling price", as 11 defined in the Retailers' Occupation Tax Act, per gallon of 12 motor fuel sold in this State during the previous 12 months 13 and multiplying it by 1.25%6 1/4%to determine the cents per 14 gallon rate. If, as a result of the provisions of this 15 amendatory Act of the 91st General Assembly, the rate of tax 16 imposed on the sale of motor fuel and gasohol by the 17 Retailers' Occupation Tax Act returns to 6.25%, then a rate 18 shall be established by the Department as of January 1 of 19 each year using the average "selling price", as defined in 20 the Retailers' Occupation Tax Act, per gallon of motor fuel 21 sold in this State during the previous 12 months and 22 multiplying it by 6.25% to determine the cents per gallon 23 rate. 24 (Source: P.A. 88-480.) 25 Section 25. The Counties Code is amended by changing 26 Sections 5-1006, 5-1006.5, 5-1007, and 5-1035.1 as follows: 27 (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006) 28 Sec. 5-1006. Home Rule County Retailers' Occupation Tax 29 Law. Any county that is a home rule unit may impose a tax 30 upon all persons engaged in the business of selling tangible 31 personal property, other than an item of tangible personal 32 property titled or registered with an agency of this State's SB1310 Engrossed -75- LRB9110257SMdv 1 government, at retail in the county on the gross receipts 2 from such sales made in the course of their business. If 3 imposed, this tax shall only be imposed in 1/4% increments. 4 On and after September 1, 1991, this additional tax may not 5 be imposed on the sales of food for human consumption which 6 is to be consumed off the premises where it is sold (other 7 than alcoholic beverages, soft drinks and food which has been 8 prepared for immediate consumption) and prescription and 9 nonprescription medicines, drugs, medical appliances and 10 insulin, urine testing materials, syringes and needles used 11 by diabetics. The tax imposed by a home rule county pursuant 12 to this Section and all civil penalties that may be assessed 13 as an incident thereof shall be collected and enforced by the 14 State Department of Revenue. The certificate of registration 15 that is issued by the Department to a retailer under the 16 Retailers' Occupation Tax Act shall permit the retailer to 17 engage in a business that is taxable under any ordinance or 18 resolution enacted pursuant to this Section without 19 registering separately with the Department under such 20 ordinance or resolution or under this Section. The 21 Department shall have full power to administer and enforce 22 this Section; to collect all taxes and penalties due 23 hereunder; to dispose of taxes and penalties so collected in 24 the manner hereinafter provided; and to determine all rights 25 to credit memoranda arising on account of the erroneous 26 payment of tax or penalty hereunder. In the administration 27 of, and compliance with, this Section, the Department and 28 persons who are subject to this Section shall have the same 29 rights, remedies, privileges, immunities, powers and duties, 30 and be subject to the same conditions, restrictions, 31 limitations, penalties and definitions of terms, and employ 32 the same modes of procedure, as are prescribed in Sections 1, 33 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in 34 respect to all provisions therein other than the State rate SB1310 Engrossed -76- LRB9110257SMdv 1 of tax), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 2 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the 3 Retailers' Occupation Tax Act and Section 3-7 of the Uniform 4 Penalty and Interest Act, as fully as if those provisions 5 were set forth herein. 6 No tax may be imposed by a home rule county pursuant to 7 this Section unless the county also imposes a tax at the same 8 rate pursuant to Section 5-1007. 9 A home rule county that has not imposed a tax under this 10 Section on the sale of motor fuel or gasohol before the 11 effective date of this amendatory Act of the 91st General 12 Assembly shall not impose such a tax on or after that date. A 13 home rule county that has imposed a tax under this Section on 14 the sale of motor fuel or gasohol before the effective date 15 of this amendatory Act of the 91st General Assembly shall not 16 increase the rate of the tax on or after that date. If, as a 17 result of the provisions of this amendatory Act of the 91st 18 General Assembly, the rate of tax imposed on the sale of 19 motor fuel and gasohol by the Retailers' Occupation Tax Act 20 returns to 6.25%, then the prohibition against imposing a tax 21 on the sale of motor fuel and gasohol and the prohibition 22 against an increase in the rate of any tax already imposed on 23 the sale of motor fuel and gasohol are no longer in effect. 24 This amendatory Act of the 91st General Assembly is a denial 25 and limitation of home rule powers to tax under subsection 26 (g) of Section 6 of Article VII of the Illinois Constitution. 27 Persons subject to any tax imposed pursuant to the 28 authority granted in this Section may reimburse themselves 29 for their seller's tax liability hereunder by separately 30 stating such tax as an additional charge, which charge may be 31 stated in combination, in a single amount, with State tax 32 which sellers are required to collect under the Use Tax Act, 33 pursuant to such bracket schedules as the Department may 34 prescribe. SB1310 Engrossed -77- LRB9110257SMdv 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 home rule county retailers' occupation 8 tax fund. 9 The Department shall forthwith pay over to the State 10 Treasurer, ex officio, as trustee, all taxes and penalties 11 collected hereunder. On or before the 25th day of each 12 calendar month, the Department shall prepare and certify to 13 the Comptroller the disbursement of stated sums of money to 14 named counties, the counties to be those from which retailers 15 have paid taxes or penalties hereunder to the Department 16 during the second preceding calendar month. The amount to be 17 paid to each county shall be the amount (not including credit 18 memoranda) collected hereunder during the second preceding 19 calendar month by the Department plus an amount the 20 Department determines is necessary to offset any amounts that 21 were erroneously paid to a different taxing body, and not 22 including an amount equal to the amount of refunds made 23 during the second preceding calendar month by the Department 24 on behalf of such county, and not including any amount which 25 the Department determines is necessary to offset any amounts 26 which were payable to a different taxing body but were 27 erroneously paid to the county. Within 10 days after receipt, 28 by the Comptroller, of the disbursement certification to the 29 counties provided for in this Section to be given to the 30 Comptroller by the Department, the Comptroller shall cause 31 the orders to be drawn for the respective amounts in 32 accordance with the directions contained in the 33 certification. 34 In addition to the disbursement required by the preceding SB1310 Engrossed -78- LRB9110257SMdv 1 paragraph, an allocation shall be made in March of each year 2 to each county that received more than $500,000 in 3 disbursements under the preceding paragraph in the preceding 4 calendar year. The allocation shall be in an amount equal to 5 the average monthly distribution made to each such county 6 under the preceding paragraph during the preceding calendar 7 year (excluding the 2 months of highest receipts). The 8 distribution made in March of each year subsequent to the 9 year in which an allocation was made pursuant to this 10 paragraph and the preceding paragraph shall be reduced by the 11 amount allocated and disbursed under this paragraph in the 12 preceding calendar year. The Department shall prepare and 13 certify to the Comptroller for disbursement the allocations 14 made in accordance with this paragraph. 15 For the purpose of determining the local governmental 16 unit whose tax is applicable, a retail sale by a producer of 17 coal or other mineral mined in Illinois is a sale at retail 18 at the place where the coal or other mineral mined in 19 Illinois is extracted from the earth. This paragraph does 20 not apply to coal or other mineral when it is delivered or 21 shipped by the seller to the purchaser at a point outside 22 Illinois so that the sale is exempt under the United States 23 Constitution as a sale in interstate or foreign commerce. 24 Nothing in this Section shall be construed to authorize a 25 county to impose a tax upon the privilege of engaging in any 26 business which under the Constitution of the United States 27 may not be made the subject of taxation by this State. 28 An ordinance or resolution imposing or discontinuing a 29 tax hereunder or effecting a change in the rate thereof shall 30 be adopted and a certified copy thereof filed with the 31 Department on or before the first day of June, whereupon the 32 Department shall proceed to administer and enforce this 33 Section as of the first day of September next following such 34 adoption and filing. Beginning January 1, 1992, an ordinance SB1310 Engrossed -79- LRB9110257SMdv 1 or resolution imposing or discontinuing the tax hereunder or 2 effecting a change in the rate thereof shall be adopted and a 3 certified copy thereof filed with the Department on or before 4 the first day of July, whereupon the Department shall proceed 5 to administer and enforce this Section as of the first day of 6 October next following such adoption and filing. Beginning 7 January 1, 1993, an ordinance or resolution imposing or 8 discontinuing the tax hereunder or effecting a change in the 9 rate thereof shall be adopted and a certified copy thereof 10 filed with the Department on or before the first day of 11 October, whereupon the Department shall proceed to administer 12 and enforce this Section as of the first day of January next 13 following such adoption and filing. Beginning April 1, 1998, 14 an ordinance or resolution imposing or discontinuing the tax 15 hereunder or effecting a change in the rate thereof shall 16 either (i) be adopted and a certified copy thereof filed with 17 the Department on or before the first day of April, whereupon 18 the Department shall proceed to administer and enforce this 19 Section as of the first day of July next following the 20 adoption and filing; or (ii) be adopted and a certified copy 21 thereof filed with the Department on or before the first day 22 of October, whereupon the Department shall proceed to 23 administer and enforce this Section as of the first day of 24 January next following the adoption and filing. 25 When certifying the amount of a monthly disbursement to a 26 county under this Section, the Department shall increase or 27 decrease such amount by an amount necessary to offset any 28 misallocation of previous disbursements. The offset amount 29 shall be the amount erroneously disbursed within the previous 30 6 months from the time a misallocation is discovered. 31 This Section shall be known and may be cited as the Home 32 Rule County Retailers' Occupation Tax Law. 33 (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.) SB1310 Engrossed -80- LRB9110257SMdv 1 (55 ILCS 5/5-1006.5) 2 Sec. 5-1006.5. Special County Retailers' Occupation Tax 3 For Public Safety. 4 (a) The county board of any county may impose a tax upon 5 all persons engaged in the business of selling tangible 6 personal property, other than personal property titled or 7 registered with an agency of this State's government, at 8 retail in the county on the gross receipts from the sales 9 made in the course of business to provide revenue to be used 10 exclusively for public safety purposes in that county, if a 11 proposition for the tax has been submitted to the electors of 12 that county and approved by a majority of those voting on the 13 question. If imposed, this tax shall be imposed only in 14 one-quarter percent increments. By resolution, the county 15 board may order the proposition to be submitted at any 16 election. The county clerk shall certify the question to the 17 proper election authority, who shall submit the proposition 18 at an election in accordance with the general election law. 19 The proposition shall be in substantially the following 20 form: 21 "Shall (name of county) be authorized to impose a 22 public safety tax at the rate of .... upon all persons 23 engaged in the business of selling tangible personal 24 property at retail in the county on gross receipts from 25 the sales made in the course of their business to be used 26 for crime prevention, detention, and other public safety 27 purposes?" 28 Votes shall be recorded as Yes or No. If a majority of the 29 electors voting on the proposition vote in favor of it, the 30 county may impose the tax. 31 This additional tax may not be imposed on the sales of 32 food for human consumption that is to be consumed off the 33 premises where it is sold (other than alcoholic beverages, 34 soft drinks, and food which has been prepared for immediate SB1310 Engrossed -81- LRB9110257SMdv 1 consumption) and prescription and non-prescription medicines, 2 drugs, medical appliances and insulin, urine testing 3 materials, syringes, and needles used by diabetics. The tax 4 imposed by a county under this Section and all civil 5 penalties that may be assessed as an incident of the tax 6 shall be collected and enforced by the Illinois Department of 7 Revenue. The certificate of registration that is issued by 8 the Department to a retailer under the Retailers' Occupation 9 Tax Act shall permit the retailer to engage in a business 10 that is taxable without registering separately with the 11 Department under an ordinance or resolution under this 12 Section. The Department has full power to administer and 13 enforce this Section, to collect all taxes and penalties due 14 under this Section, to dispose of taxes and penalties so 15 collected in the manner provided in this Section, and to 16 determine all rights to credit memoranda arising on account 17 of the erroneous payment of a tax or penalty under this 18 Section. In the administration of and compliance with this 19 Section, the Department and persons who are subject to this 20 Section shall (i) have the same rights, remedies, privileges, 21 immunities, powers, and duties, (ii) be subject to the same 22 conditions, restrictions, limitations, penalties, and 23 definitions of terms, and (iii) employ the same modes of 24 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 25 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to 26 all provisions contained in those Sections other than the 27 State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except 28 provisions relating to transaction returns and quarter 29 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 30 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 31 of the Retailers' Occupation Tax Act and Section 3-7 of the 32 Uniform Penalty and Interest Act as if those provisions were 33 set forth in this Section. 34 A county that has not imposed a tax under this subsection SB1310 Engrossed -82- LRB9110257SMdv 1 on the sale of motor fuel or gasohol before the effective 2 date of this amendatory Act of the 91st General Assembly 3 shall not impose such a tax on or after that date. A county 4 that has imposed a tax under this subsection on the sale of 5 motor fuel or gasohol before the effective date of this 6 amendatory Act of the 91st General Assembly shall not 7 increase the rate of the tax on or after that date. If, as a 8 result of the provisions of this amendatory Act of the 91st 9 General Assembly, the rate of tax imposed on the sale of 10 motor fuel and gasohol by the Retailers' Occupation Tax Act 11 returns to 6.25%, then the prohibition against imposing a tax 12 on the sale of motor fuel and gasohol and the prohibition 13 against an increase in the rate of any tax already imposed on 14 the sale of motor fuel and gasohol are no longer in effect. 15 Persons subject to any tax imposed under the authority 16 granted in this Section may reimburse themselves for their 17 sellers' tax liability by separately stating the tax as an 18 additional charge, which charge may be stated in combination, 19 in a single amount, with State tax which sellers are required 20 to collect under the Use Tax Act, pursuant to such bracketed 21 schedules as the Department may prescribe. 22 Whenever the Department determines that a refund should 23 be made under this Section to a claimant instead of issuing a 24 credit memorandum, the Department shall notify the State 25 Comptroller, who shall cause the order to be drawn for the 26 amount specified and to the person named in the notification 27 from the Department. The refund shall be paid by the State 28 Treasurer out of the County Public Safety Retailers' 29 Occupation Tax Fund. 30 (b) If a tax has been imposed under subsection (a), a 31 service occupation tax shall also be imposed at the same rate 32 upon all persons engaged, in the county, in the business of 33 making sales of service, who, as an incident to making those 34 sales of service, transfer tangible personal property within SB1310 Engrossed -83- LRB9110257SMdv 1 the county as an incident to a sale of service. This tax may 2 not be imposed on sales of 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 prepared for 5 immediate consumption) and prescription and non-prescription 6 medicines, drugs, medical appliances and insulin, urine 7 testing materials, syringes, and needles used by diabetics. 8 The tax imposed under this subsection and all civil penalties 9 that may be assessed as an incident thereof shall be 10 collected and enforced by the Department of Revenue. The 11 Department has full power to administer and enforce this 12 subsection; to collect all taxes and penalties due hereunder; 13 to dispose of taxes and penalties so collected in the manner 14 hereinafter provided; and to determine all rights to credit 15 memoranda arising on account of the erroneous payment of tax 16 or penalty hereunder. In the administration of, and 17 compliance with this subsection, the Department and persons 18 who are subject to this paragraph shall (i) have the same 19 rights, remedies, privileges, immunities, powers, and duties, 20 (ii) be subject to the same conditions, restrictions, 21 limitations, penalties, exclusions, exemptions, and 22 definitions of terms, and (iii) employ the same modes of 23 procedure as are prescribed in Sections 2 (except that the 24 reference to State in the definition of supplier maintaining 25 a place of business in this State shall mean the county), 2a, 26 2b, 2c, 3 through 3-50 (in respect to all provisions therein 27 other than the State rate of tax), 4 (except that the 28 reference to the State shall be to the county), 5, 7, 8 29 (except that the jurisdiction to which the tax shall be a 30 debt to the extent indicated in that Section 8 shall be the 31 county), 9 (except as to the disposition of taxes and 32 penalties collected), 10, 11, 12 (except the reference 33 therein to Section 2b of the Retailers' Occupation Tax Act), 34 13 (except that any reference to the State shall mean the SB1310 Engrossed -84- LRB9110257SMdv 1 county), Section 15, 16, 17, 18, 19 and 20 of the Service 2 Occupation Tax Act and Section 3-7 of the Uniform Penalty and 3 Interest Act, as fully as if those provisions were set forth 4 herein. 5 A county that has not imposed a tax under this subsection 6 on the selling price of motor fuel or gasohol before the 7 effective date of this amendatory Act of the 91st General 8 Assembly shall not impose such a tax on or after that date. 9 A county that has imposed a tax under this subsection on the 10 selling price of motor fuel or gasohol before the effective 11 date of this amendatory Act of the 91st General Assembly 12 shall not increase the rate of the tax on or after that date. 13 If, as a result of the provisions of this amendatory Act of 14 the 91st General Assembly, the rate of tax imposed on the 15 sale of motor fuel and gasohol by the Retailers' Occupation 16 Tax Act returns to 6.25%, then the prohibition against 17 imposing a tax on the sale of motor fuel and gasohol and the 18 prohibition against an increase in the rate of any tax 19 already imposed on the sale of motor fuel and gasohol are no 20 longer in effect. 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 SB1310 Engrossed -85- LRB9110257SMdv 1 by the State Treasurer out of the County Public Safety 2 Retailers' Occupation Fund. 3 Nothing in this subsection shall be construed to 4 authorize the county to impose a tax upon the privilege of 5 engaging in any business which under the Constitution of the 6 United States may not be made the subject of taxation by the 7 State. 8 (c) The Department shall immediately pay over to the 9 State Treasurer, ex officio, as trustee, all taxes and 10 penalties collected under this Section to be deposited into 11 the County Public Safety Retailers' Occupation Tax Fund, 12 which shall be an unappropriated trust fund held outside of 13 the State treasury. On or before the 25th day of each 14 calendar month, the Department shall prepare and certify to 15 the Comptroller the disbursement of stated sums of money to 16 the counties from which retailers have paid taxes or 17 penalties to the Department during the second preceding 18 calendar month. The amount to be paid to each county shall 19 be the amount (not including credit memoranda) collected 20 under this Section during the second preceding calendar month 21 by the Department plus an amount the Department determines is 22 necessary to offset any amounts that were erroneously paid to 23 a different taxing body, and not including (i) an amount 24 equal to the amount of refunds made during the second 25 preceding calendar month by the Department on behalf of the 26 county and (ii) any amount that the Department determines is 27 necessary to offset any amounts that were payable to a 28 different taxing body but were erroneously paid to the 29 county. Within 10 days after receipt by the Comptroller of 30 the disbursement certification to the counties provided for 31 in this Section to be given to the Comptroller by the 32 Department, the Comptroller shall cause the orders to be 33 drawn for the respective amounts in accordance with 34 directions contained in the certification. SB1310 Engrossed -86- LRB9110257SMdv 1 In addition to the disbursement required by the preceding 2 paragraph, an allocation shall be made in March of each year 3 to each county that received more than $500,000 in 4 disbursements under the preceding paragraph in the preceding 5 calendar year. The allocation shall be in an amount equal to 6 the average monthly distribution made to each such county 7 under the preceding paragraph during the preceding calendar 8 year (excluding the 2 months of highest receipts). The 9 distribution made in March of each year subsequent to the 10 year in which an allocation was made pursuant to this 11 paragraph and the preceding paragraph shall be reduced by the 12 amount allocated and disbursed under this paragraph in the 13 preceding calendar year. The Department shall prepare and 14 certify to the Comptroller for disbursement the allocations 15 made in accordance with this paragraph. 16 (d) For the purpose of determining the local 17 governmental unit whose tax is applicable, a retail sale by a 18 producer of coal or another mineral mined in Illinois is a 19 sale at retail at the place where the coal or other mineral 20 mined in Illinois is extracted from the earth. This 21 paragraph does not apply to coal or another mineral when it 22 is delivered or shipped by the seller to the purchaser at a 23 point outside Illinois so that the sale is exempt under the 24 United States Constitution as a sale in interstate or foreign 25 commerce. 26 (e) Nothing in this Section shall be construed to 27 authorize a county to impose a tax upon the privilege of 28 engaging in any business that under the Constitution of the 29 United States may not be made the subject of taxation by this 30 State. 31 (e-5) If a county imposes a tax under this Section, the 32 county board may, by ordinance, discontinue or lower the rate 33 of the tax. If the county board lowers the tax rate or 34 discontinues the tax, a referendum must be held in accordance SB1310 Engrossed -87- LRB9110257SMdv 1 with subsection (a) of this Section in order to increase the 2 rate of the tax or to reimpose the discontinued tax. 3 (f) Beginning April 1, 1998, the results of any election 4 authorizing a proposition to impose a tax under this Section 5 or effecting a change in the rate of tax, or any ordinance 6 lowering the rate or discontinuing the tax, shall be 7 certified by the county clerk and filed with the Illinois 8 Department of Revenue either (i) on or before the first day 9 of April, whereupon the Department shall proceed to 10 administer and enforce the tax as of the first day of July 11 next following the filing; or (ii) on or before the first day 12 of October, whereupon the Department shall proceed to 13 administer and enforce the tax as of the first day of January 14 next following the filing. 15 (g) When certifying the amount of a monthly disbursement 16 to a county under this Section, the Department shall increase 17 or decrease the amounts by an amount necessary to offset any 18 miscalculation of previous disbursements. The offset amount 19 shall be the amount erroneously disbursed within the previous 20 6 months from the time a miscalculation is discovered. 21 (h) This Section may be cited as the "Special County 22 Occupation Tax For Public Safety Law". 23 (i) For purposes of this Section, "public safety" 24 includes but is not limited to fire fighting, police, 25 medical, ambulance, or other emergency services. 26 (j) This amendatory Act of the 91st General Assembly is 27 a denial and limitation of home rule powers to tax under 28 subsection (g) of Section 6 of Article VII of the Illinois 29 Constitution. 30 (Source: P.A. 89-107, eff. 1-1-96; 89-718, eff. 3-7-97; 31 90-190, eff. 7-24-97; 90-267, eff. 7-30-97; 90-552, eff. 32 12-12-97; 90-562, eff. 12-16-97; 90-655, eff. 7-30-98; 33 90-689, eff. 7-31-98.) SB1310 Engrossed -88- LRB9110257SMdv 1 (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007) 2 Sec. 5-1007. Home Rule County Service Occupation Tax 3 Law. The corporate authorities of a home rule county may 4 impose a tax upon all persons engaged, in such county, in the 5 business of making sales of service at the same rate of tax 6 imposed pursuant to Section 5-1006 of the selling price of 7 all tangible personal property transferred by such servicemen 8 either in the form of tangible personal property or in the 9 form of real estate as an incident to a sale of service. If 10 imposed, such tax shall only be imposed in 1/4% increments. 11 On and after September 1, 1991, this additional tax may not 12 be imposed on the sales of food for human consumption which 13 is to be consumed off the premises where it is sold (other 14 than alcoholic beverages, soft drinks and food which has been 15 prepared for immediate consumption) and prescription and 16 nonprescription medicines, drugs, medical appliances and 17 insulin, urine testing materials, syringes and needles used 18 by diabetics. The tax imposed by a home rule county pursuant 19 to this Section and all civil penalties that may be assessed 20 as an incident thereof shall be collected and enforced by the 21 State Department of Revenue. The certificate of registration 22 which is issued by the Department to a retailer under the 23 Retailers' Occupation Tax Act or under the Service Occupation 24 Tax Act shall permit such registrant to engage in a business 25 which is taxable under any ordinance or resolution enacted 26 pursuant to this Section without registering separately with 27 the Department under such ordinance or resolution or under 28 this Section. The Department shall have full power to 29 administer and enforce this Section; to collect all taxes and 30 penalties due hereunder; to dispose of taxes and penalties so 31 collected in the manner hereinafter provided; and to 32 determine all rights to credit memoranda arising on account 33 of the erroneous payment of tax or penalty hereunder. In the 34 administration of, and compliance with, this Section the SB1310 Engrossed -89- LRB9110257SMdv 1 Department and persons who are subject to this Section shall 2 have the same rights, remedies, privileges, immunities, 3 powers and duties, and be subject to the same conditions, 4 restrictions, limitations, penalties and definitions of 5 terms, and employ the same modes of procedure, as are 6 prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (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 taxing county), 5, 7, 8 (except that the jurisdiction 10 to which the tax shall be a debt to the extent indicated in 11 that Section 8 shall be the taxing county), 9 (except as to 12 the disposition of taxes and penalties collected, and except 13 that the returned merchandise credit for this county tax may 14 not be taken against any State tax), 10, 11, 12 (except the 15 reference therein to Section 2b of the Retailers' Occupation 16 Tax Act), 13 (except that any reference to the State shall 17 mean the taxing county), the first paragraph of Section 15, 18 16, 17, 18, 19 and 20 of the Service Occupation Tax Act and 19 Section 3-7 of the Uniform Penalty and Interest Act, as fully 20 as if those provisions were set forth herein. 21 No tax may be imposed by a home rule county pursuant to 22 this Section unless such county also imposes a tax at the 23 same rate pursuant to Section 5-1006. 24 A home rule county that has not imposed a tax under this 25 Section on the selling price of motor fuel or gasohol before 26 the effective date of this amendatory Act of the 91st General 27 Assembly shall not impose such a tax on or after that date. A 28 home rule county that has imposed a tax under this Section on 29 the sale of motor fuel or gasohol before the effective date 30 of this amendatory Act of the 91st General Assembly shall not 31 increase the rate of the tax on or after that date. If, as a 32 result of the provisions of this amendatory Act of the 91st 33 General Assembly, the rate of tax imposed on the sale of 34 motor fuel and gasohol by the Retailers' Occupation Tax Act SB1310 Engrossed -90- LRB9110257SMdv 1 returns to 6.25%, then the prohibition against imposing a tax 2 on the sale of motor fuel and gasohol and the prohibition 3 against an increase in the rate of any tax already imposed on 4 the sale of motor fuel and gasohol are no longer in effect. 5 This amendatory Act of the 91st General Assembly is a denial 6 and limitation of home rule powers to tax under subsection 7 (g) of Section 6 of Article VII of the Illinois Constitution. 8 Persons subject to any tax imposed pursuant to the 9 authority granted in this Section may reimburse themselves 10 for their serviceman's tax liability hereunder by separately 11 stating such tax as an additional charge, which charge may be 12 stated in combination, in a single amount, with State tax 13 which servicemen are authorized to collect under the Service 14 Use Tax Act, pursuant to such bracket schedules as the 15 Department may prescribe. 16 Whenever the Department determines that a refund should 17 be made under this Section to a claimant instead of issuing 18 credit memorandum, the Department shall notify the State 19 Comptroller, who shall cause the order to be drawn for the 20 amount specified, and to the person named, in such 21 notification from the Department. Such refund shall be paid 22 by the State Treasurer out of the home rule county retailers' 23 occupation tax fund. 24 The Department shall forthwith pay over to the State 25 Treasurer, ex-officio, as trustee, all taxes and penalties 26 collected hereunder. On or before the 25th day of each 27 calendar month, the Department shall prepare and certify to 28 the Comptroller the disbursement of stated sums of money to 29 named counties, the counties to be those from which suppliers 30 and servicemen have paid taxes or penalties hereunder to the 31 Department during the second preceding calendar month. The 32 amount to be paid to each county shall be the amount (not 33 including credit memoranda) collected hereunder during the 34 second preceding calendar month by the Department, and not SB1310 Engrossed -91- LRB9110257SMdv 1 including an amount equal to the amount of refunds made 2 during the second preceding calendar month by the Department 3 on behalf of such county. Within 10 days after receipt, by 4 the Comptroller, of the disbursement certification to the 5 counties provided for in this Section to be given to the 6 Comptroller by the Department, the Comptroller shall cause 7 the orders to be drawn for the respective amounts in 8 accordance with the directions contained in such 9 certification. 10 In addition to the disbursement required by the preceding 11 paragraph, an allocation shall be made in each year to each 12 county which received more than $500,000 in disbursements 13 under the preceding paragraph in the preceding calendar year. 14 The allocation shall be in an amount equal to the average 15 monthly distribution made to each such county under the 16 preceding paragraph during the preceding calendar year 17 (excluding the 2 months of highest receipts). The 18 distribution made in March of each year subsequent to the 19 year in which an allocation was made pursuant to this 20 paragraph and the preceding paragraph shall be reduced by the 21 amount allocated and disbursed under this paragraph in the 22 preceding calendar year. The Department shall prepare and 23 certify to the Comptroller for disbursement the allocations 24 made in accordance with this paragraph. 25 Nothing in this Section shall be construed to authorize a 26 county to impose a tax upon the privilege of engaging in any 27 business which under the Constitution of the United States 28 may not be made the subject of taxation by this State. 29 An ordinance or resolution imposing or discontinuing a 30 tax hereunder or effecting a change in the rate thereof shall 31 be adopted and a certified copy thereof filed with the 32 Department on or before the first day of June, whereupon the 33 Department shall proceed to administer and enforce this 34 Section as of the first day of September next following such SB1310 Engrossed -92- LRB9110257SMdv 1 adoption and filing. Beginning January 1, 1992, an ordinance 2 or resolution imposing or discontinuing the tax hereunder or 3 effecting a change in the rate thereof shall be adopted and a 4 certified copy thereof filed with the Department on or before 5 the first day of July, whereupon the Department shall proceed 6 to administer and enforce this Section as of the first day of 7 October next following such adoption and filing. Beginning 8 January 1, 1993, an ordinance or resolution imposing or 9 discontinuing the tax hereunder or effecting a change in the 10 rate thereof shall be adopted and a certified copy thereof 11 filed with the Department on or before the first day of 12 October, whereupon the Department shall proceed to administer 13 and enforce this Section as of the first day of January next 14 following such adoption and filing. Beginning April 1, 1998, 15 an ordinance or resolution imposing or discontinuing the tax 16 hereunder or effecting a change in the rate thereof shall 17 either (i) be adopted and a certified copy thereof filed with 18 the Department on or before the first day of April, whereupon 19 the Department shall proceed to administer and enforce this 20 Section as of the first day of July next following the 21 adoption and filing; or (ii) be adopted and a certified copy 22 thereof filed with the Department on or before the first day 23 of October, whereupon the Department shall proceed to 24 administer and enforce this Section as of the first day of 25 January next following the adoption and filing. 26 This Section shall be known and may be cited as the Home 27 Rule County Service Occupation Tax Law. 28 (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.) 29 (55 ILCS 5/5-1035.1) (from Ch. 34, par. 5-1035.1) 30 Sec. 5-1035.1. County Motor Fuel Tax Law. The county 31 board of the counties of DuPage, Kane and McHenry may, by an 32 ordinance or resolution adopted by an affirmative vote of a 33 majority of the members elected or appointed to the county SB1310 Engrossed -93- LRB9110257SMdv 1 board, impose a tax upon all persons engaged in the county in 2 the business of selling motor fuel, as now or hereafter 3 defined in the Motor Fuel Tax Law, at retail for the 4 operation of motor vehicles upon public highways or for the 5 operation of recreational watercraft upon waterways. Kane 6 County may exempt diesel fuel from the tax imposed pursuant 7 to this Section. The tax may be imposed, in half-cent 8 increments, at a rate not exceeding 4 cents per gallon of 9 motor fuel sold at retail within the county for the purpose 10 of use or consumption and not for the purpose of resale. The 11 proceeds from the tax shall be used by the county solely for 12 the purpose of operating, constructing and improving public 13 highways and waterways, and acquiring real property and 14 right-of-ways for public highways and waterways within the 15 county imposing the tax. 16 A county that has not imposed a tax under this Section 17 before the effective date of this amendatory Act of the 91st 18 General Assembly shall not impose such a tax on or after that 19 date. A county that has imposed a tax under this Section 20 before the effective date of this amendatory Act of the 91st 21 General Assembly shall not increase the rate of the tax on or 22 after that date. If, as a result of the provisions of this 23 amendatory Act of the 91st General Assembly, the rate of tax 24 imposed on the sale of motor fuel and gasohol by the 25 Retailers' Occupation Tax Act returns to 6.25%, then the 26 prohibition against imposing a tax on the sale of motor fuel 27 and gasohol and the prohibition against an increase in the 28 rate of any tax already imposed on the sale of motor fuel and 29 gasohol are no longer in effect. 30 A tax imposed pursuant to this Section, and all civil 31 penalties that may be assessed as an incident thereof, shall 32 be administered, collected and enforced by the Illinois 33 Department of Revenue in the same manner as the tax imposed 34 under the Retailers' Occupation Tax Act, as now or hereafter SB1310 Engrossed -94- LRB9110257SMdv 1 amended, insofar as may be practicable; except that in the 2 event of a conflict with the provisions of this Section, this 3 Section shall control. The Department of Revenue shall have 4 full power: to administer and enforce this Section; to 5 collect all taxes and penalties due hereunder; to dispose of 6 taxes 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. 10 Whenever the Department determines that a refund shall be 11 made under this Section to a claimant instead of issuing a 12 credit memorandum, the Department shall notify the State 13 Comptroller, who shall cause the order to be drawn for the 14 amount specified, and to the person named, in the 15 notification from the Department. The refund shall be paid by 16 the State Treasurer out of the County Option Motor Fuel Tax 17 Fund. 18 The Department shall forthwith pay over to the State 19 Treasurer, ex-officio, as trustee, all taxes and penalties 20 collected hereunder, which shall be deposited into the County 21 Option Motor Fuel Tax Fund, a special fund in the State 22 Treasury which is hereby created. On or before the 25th day 23 of each calendar month, the Department shall prepare and 24 certify to the State Comptroller the disbursement of stated 25 sums of money to named counties for which taxpayers have paid 26 taxes or penalties hereunder to the Department during the 27 second preceding calendar month. The amount to be paid to 28 each county shall be the amount (not including credit 29 memoranda) collected hereunder from retailers within the 30 county during the second preceding calendar month by the 31 Department, but not including an amount equal to the amount 32 of refunds made during the second preceding calendar month by 33 the Department on behalf of the county; less the amount 34 expended during the second preceding month by the Department SB1310 Engrossed -95- LRB9110257SMdv 1 pursuant to appropriation from the County Option Motor Fuel 2 Tax Fund for the administration and enforcement of this 3 Section, which appropriation shall not exceed $200,000 for 4 fiscal year 1990 and, for each year thereafter, shall not 5 exceed 2% of the amount deposited into the County Option 6 Motor Fuel Tax Fund during the preceding fiscal year. 7 Nothing in this Section shall be construed to authorize a 8 county to impose a tax upon the privilege of engaging in any 9 business which under the Constitution of the United States 10 may not be made the subject of taxation by this State. 11 An ordinance or resolution imposing a tax hereunder or 12 effecting a change in the rate thereof shall be effective on 13 the first day of the second calendar month next following the 14 month in which the ordinance or resolution is adopted and a 15 certified copy thereof is filed with the Department of 16 Revenue, whereupon the Department of Revenue shall proceed 17 to administer and enforce this Section on behalf of the 18 county as of the effective date of the ordinance or 19 resolution. Upon a change in rate of a tax levied hereunder, 20 or upon the discontinuance of the tax, the county board of 21 the county shall, on or not later than 5 days after the 22 effective date of the ordinance or resolution discontinuing 23 the tax or effecting a change in rate, transmit to the 24 Department of Revenue a certified copy of the ordinance or 25 resolution effecting the change or discontinuance. 26 This Section shall be known and may be cited as the 27 County Motor Fuel Tax Law. 28 (Source: P.A. 86-1028; 87-289.) 29 Section 30. The Illinois Municipal Code is amended by 30 changing Sections 8-11-1, 8-11-1.1, 8-11-5, 8-11-6, and 31 8-11-15 as follows: 32 (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1) SB1310 Engrossed -96- LRB9110257SMdv 1 Sec. 8-11-1. Home Rule Municipal Retailers' Occupation 2 Tax Act. The corporate authorities of a home rule 3 municipality may impose a tax upon all persons engaged in the 4 business of selling tangible personal property, other than an 5 item of tangible personal property titled or registered with 6 an agency of this State's government, at retail in the 7 municipality on the gross receipts from these sales made in 8 the course of such business. If imposed, the tax shall only 9 be imposed in 1/4% increments. On and after September 1, 10 1991, this additional tax may not be imposed on the sales of 11 food for human consumption that is to be consumed off the 12 premises where it is sold (other than alcoholic beverages, 13 soft drinks and food that has been prepared for immediate 14 consumption) and prescription and nonprescription medicines, 15 drugs, medical appliances and insulin, urine testing 16 materials, syringes and needles used by diabetics. The tax 17 imposed by a home rule municipality under this Section and 18 all civil penalties that may be assessed as an incident of 19 the tax shall be collected and enforced by the State 20 Department of Revenue. The certificate of registration that 21 is issued by the Department to a retailer under the 22 Retailers' Occupation Tax Act shall permit the retailer to 23 engage in a business that is taxable under any ordinance or 24 resolution enacted pursuant to this Section without 25 registering separately with the Department under such 26 ordinance or resolution or under this Section. The 27 Department shall have full power to administer and enforce 28 this Section; to collect all taxes and penalties due 29 hereunder; to dispose of taxes and penalties so collected in 30 the manner hereinafter provided; and to determine all rights 31 to credit memoranda arising on account of the erroneous 32 payment of tax or penalty hereunder. In the administration 33 of, and compliance with, this Section the Department and 34 persons who are subject to this Section shall have the same SB1310 Engrossed -97- LRB9110257SMdv 1 rights, remedies, privileges, immunities, powers and duties, 2 and be subject to the same conditions, restrictions, 3 limitations, penalties and definitions of terms, and employ 4 the same modes of procedure, as are prescribed in Sections 1, 5 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in 6 respect to all provisions therein other than the State rate 7 of tax), 2c, 3 (except as to the disposition of taxes and 8 penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 9 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of 10 the Retailers' Occupation Tax Act and Section 3-7 of the 11 Uniform Penalty and Interest Act, as fully as if those 12 provisions were set forth herein. 13 No tax may be imposed by a home rule municipality under 14 this Section unless the municipality also imposes a tax at 15 the same rate under Section 8-11-5 of this Act. 16 A home rule municipality that has not imposed a tax under 17 this Section on the sale of motor fuel or gasohol before the 18 effective date of this amendatory Act of the 91st General 19 Assembly shall not impose such a tax on or after that date. A 20 home rule municipality that has imposed a tax under this 21 Section on the sale of motor fuel or gasohol before the 22 effective date of this amendatory Act of the 91st General 23 Assembly shall not increase the rate of the tax on or after 24 that date. If, as a result of the provisions of this 25 amendatory Act of the 91st General Assembly, the rate of tax 26 imposed on the sale of motor fuel and gasohol by the 27 Retailers' Occupation Tax Act returns to 6.25%, then the 28 prohibition against imposing a tax on the sale of motor fuel 29 and gasohol and the prohibition against an increase in the 30 rate of any tax already imposed on the sale of motor fuel and 31 gasohol are no longer in effect. This amendatory Act of the 32 91st General Assembly is a denial and limitation of home rule 33 powers to tax under subsection (g) of Section 6 of Article 34 VII of the Illinois Constitution. SB1310 Engrossed -98- LRB9110257SMdv 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 that 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 a 10 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 home rule municipal retailers' 15 occupation tax fund. 16 The Department shall immediately 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 such 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 SB1310 Engrossed -99- LRB9110257SMdv 1 municipality. Within 10 days after receipt by the Comptroller 2 of the disbursement certification to the municipalities 3 provided for in this Section to be given to the Comptroller 4 by the Department, the Comptroller shall cause the orders to 5 be drawn for the respective amounts in accordance with the 6 directions contained in the certification. 7 In addition to the disbursement required by the preceding 8 paragraph and in order to mitigate delays caused by 9 distribution procedures, an allocation shall, if requested, 10 be made within 10 days after January 14, 1991, and in 11 November of 1991 and each year thereafter, to each 12 municipality that received more than $500,000 during the 13 preceding fiscal year, (July 1 through June 30) whether 14 collected by the municipality or disbursed by the Department 15 as required by this Section. Within 10 days after January 14, 16 1991, participating municipalities shall notify the 17 Department in writing of their intent to participate. In 18 addition, for the initial distribution, participating 19 municipalities shall certify to the Department the amounts 20 collected by the municipality for each month under its home 21 rule occupation and service occupation tax during the period 22 July 1, 1989 through June 30, 1990. The allocation within 10 23 days after January 14, 1991, shall be in an amount equal to 24 the monthly average of these amounts, excluding the 2 months 25 of highest receipts. The monthly average for the period of 26 July 1, 1990 through June 30, 1991 will be determined as 27 follows: the amounts collected by the municipality under its 28 home rule occupation and service occupation tax during the 29 period of July 1, 1990 through September 30, 1990, plus 30 amounts collected by the Department and paid to such 31 municipality through June 30, 1991, excluding the 2 months of 32 highest receipts. The monthly average for each subsequent 33 period of July 1 through June 30 shall be an amount equal to 34 the monthly distribution made to each such municipality under SB1310 Engrossed -100- LRB9110257SMdv 1 the preceding paragraph during this period, excluding the 2 2 months of highest receipts. The distribution made in 3 November 1991 and each year thereafter under this paragraph 4 and the preceding paragraph shall be reduced by the amount 5 allocated and disbursed under this paragraph in the preceding 6 period of July 1 through June 30. The Department shall 7 prepare and certify to the Comptroller for disbursement the 8 allocations 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 municipality to impose a tax upon the privilege of engaging 20 in any business which under the Constitution of the United 21 States 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 the 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 SB1310 Engrossed -101- LRB9110257SMdv 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 the adoption and filing. However, a municipality 8 located in a county with a population in excess of 3,000,000 9 that elected to become a home rule unit at the general 10 primary election in 1994 may adopt an ordinance or resolution 11 imposing the tax under this Section and file a certified copy 12 of the ordinance or resolution with the Department on or 13 before July 1, 1994. The Department shall then proceed to 14 administer and enforce this Section as of October 1, 1994. 15 Beginning April 1, 1998, an ordinance or resolution imposing 16 or discontinuing the tax hereunder or effecting a change in 17 the rate thereof shall either (i) be adopted and a certified 18 copy thereof filed with the Department on or before the first 19 day of April, whereupon the Department shall proceed to 20 administer and enforce this Section as of the first day of 21 July next following the adoption and filing; or (ii) be 22 adopted and a certified copy thereof filed with the 23 Department on or before the first day of October, whereupon 24 the Department shall proceed to administer and enforce this 25 Section as of the first day of January next following the 26 adoption and filing. 27 When certifying the amount of a monthly disbursement to a 28 municipality under this Section, the Department shall 29 increase or decrease the 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 Any unobligated balance remaining in the Municipal SB1310 Engrossed -102- LRB9110257SMdv 1 Retailers' Occupation Tax Fund on December 31, 1989, which 2 fund was abolished by Public Act 85-1135, and all receipts of 3 municipal tax as a result of audits of liability periods 4 prior to January 1, 1990, shall be paid into the Local 5 Government Tax Fund for distribution as provided by this 6 Section prior to the enactment of Public Act 85-1135. All 7 receipts of municipal tax as a result of an assessment not 8 arising from an audit, for liability periods prior to January 9 1, 1990, shall be paid into the Local Government Tax Fund for 10 distribution before July 1, 1990, as provided by this Section 11 prior to the enactment of Public Act 85-1135; and on and 12 after July 1, 1990, all such receipts shall be distributed as 13 provided in Section 6z-18 of the State Finance Act. 14 As used in this Section, "municipal" and "municipality" 15 means a city, village or incorporated town, including an 16 incorporated town that has superseded a civil township. 17 This Section shall be known and may be cited as the Home 18 Rule Municipal Retailers' Occupation Tax Act. 19 (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.) 20 (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1) 21 Sec. 8-11-1.1. Non-home rule municipalities; use and 22 occupationimposition oftaxes. 23 (a) The corporate authorities of a non-home rule 24 municipality may, upon approval of the electors of the 25 municipality pursuant to subsection (b) of this Section, 26 impose by ordinance or resolution the 1/2 of 1% tax 27 authorized in Sections 8-11-1.3, 8-11-1.4 and 8-11-1.5 of 28 this Act. 29 A municipality that has not imposed a tax on motor fuel 30 or gasohol authorized in Sections 8-11-1.3, 8-11-1.4, and 31 8-11-1.5 before the effective date of this amendatory Act of 32 the 91st General Assembly shall not impose such a tax on or 33 after that date. A municipality that has imposed a tax on SB1310 Engrossed -103- LRB9110257SMdv 1 motor fuel or gasohol authorized in Sections 8-11-1.3, 2 8-11-1.4, and 8-11-1.5 before the effective date of this 3 amendatory Act of the 91st General Assembly shall not 4 increase the rate of the tax on or after that date. If, as a 5 result of the provisions of this amendatory Act of the 91st 6 General Assembly, the rate of tax imposed on the sale of 7 motor fuel and gasohol by the Retailers' Occupation Tax Act 8 returns to 6.25%, then the prohibition against imposing a tax 9 on the sale of motor fuel and gasohol and the prohibition 10 against an increase in the rate of any tax already imposed on 11 the sale of motor fuel and gasohol are no longer in effect. 12 (b) The corporate authorities of the municipality may by 13 ordinance or resolution call for the submission to the 14 electors of the municipality the question of whether the 15 municipality shall impose such tax. Such question shall be 16 certified by the municipal clerk to the election authority in 17 accordance with Section 28-5 of the Election Code and shall 18 be in a form in accordance with Section 16-7 of the Election 19 Code. 20 If a majority of the electors in the municipality voting 21 upon the question vote in the affirmative, such tax shall be 22 imposed. 23 An ordinance or resolution imposing the 1/2 of 1% tax 24 hereunder or discontinuing the same shall be adopted and a 25 certified copy thereof, together with a certification that 26 the ordinance or resolution received referendum approval in 27 the case of the imposition of such tax, filed with the 28 Department of Revenue, on or before the first day of June, 29 whereupon the Department shall proceed to administer and 30 enforce the additional tax or to discontinue the tax, as the 31 case may be, as of the first day of September next following 32 such adoption and filing. Beginning January 1, 1992, an 33 ordinance or resolution imposing or discontinuing the tax 34 hereunder shall be adopted and a certified copy thereof filed SB1310 Engrossed -104- LRB9110257SMdv 1 with the Department on or before the first day of July, 2 whereupon the Department shall proceed to administer and 3 enforce this Section as of the first day of October next 4 following such adoption and filing. Beginning January 1, 5 1993, an ordinance or resolution imposing or discontinuing 6 the tax hereunder shall be adopted and a certified copy 7 thereof filed with the Department on or before the first day 8 of October, whereupon the Department shall proceed to 9 administer and enforce this Section as of the first day of 10 January next following such adoption and filing. A non-home 11 rule municipality may file a certified copy of an ordinance 12 or resolution, with a certification that the ordinance or 13 resolution received referendum approval in the case of the 14 imposition of the tax, with the Department of Revenue, as 15 required under this Section, only after October 2, 2000. 16 (Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.) 17 (65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5) 18 Sec. 8-11-5. Home Rule Municipal Service Occupation Tax 19 Act. The corporate authorities of a home rule municipality 20 may impose a tax upon all persons engaged, in such 21 municipality, in the business of making sales of service at 22 the same rate of tax imposed pursuant to Section 8-11-1, of 23 the selling price of all tangible personal property 24 transferred by such servicemen either in the form of tangible 25 personal property or in the form of real estate as an 26 incident to a sale of service. If imposed, such tax shall 27 only be imposed in 1/4% increments. On and after September 1, 28 1991, this additional tax may not be imposed on the sales of 29 food for human consumption which is to be consumed off the 30 premises where it is sold (other than alcoholic beverages, 31 soft drinks and food which has been prepared for immediate 32 consumption) and prescription and nonprescription medicines, 33 drugs, medical appliances and insulin, urine testing SB1310 Engrossed -105- LRB9110257SMdv 1 materials, syringes and needles used by diabetics. The tax 2 imposed by a home rule municipality pursuant to this Section 3 and all civil penalties that may be assessed as an incident 4 thereof shall be collected and enforced by the State 5 Department of Revenue. The certificate of registration which 6 is issued by the Department to a retailer under the 7 Retailers' Occupation Tax Act or under the Service Occupation 8 Tax Act shall permit such registrant to engage in a business 9 which is taxable under any ordinance or resolution enacted 10 pursuant to this Section without registering separately with 11 the Department under such ordinance or resolution or under 12 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 1a-1, 2, 2a, 3 through 3-50 (in 25 respect to all provisions therein other than the State rate 26 of tax), 4 (except that the reference to the State shall be 27 to the taxing municipality), 5, 7, 8 (except that the 28 jurisdiction to which the tax shall be a debt to the extent 29 indicated in that Section 8 shall be the taxing 30 municipality), 9 (except as to the disposition of taxes and 31 penalties collected, and except that the returned merchandise 32 credit for this municipal tax may not be taken against any 33 State tax), 10, 11, 12 (except the reference therein to 34 Section 2b of the Retailers' Occupation Tax Act), 13 (except SB1310 Engrossed -106- LRB9110257SMdv 1 that any reference to the State shall mean the taxing 2 municipality), the first paragraph of Section 15, 16, 17 3 (except that credit memoranda issued hereunder may not be 4 used to discharge any State tax liability), 18, 19 and 20 of 5 the Service Occupation Tax Act and Section 3-7 of the Uniform 6 Penalty and Interest Act, as fully as if those provisions 7 were set forth herein. 8 No tax may be imposed by a home rule municipality 9 pursuant to this Section unless such municipality also 10 imposes a tax at the same rate pursuant to Section 8-11-1 of 11 this Act. 12 A home rule municipality that has not imposed a tax under 13 this Section on the selling price of motor fuel or gasohol 14 before the effective date of this amendatory Act of the 91st 15 General Assembly shall not impose such a tax on or after that 16 date. A home rule municipality that has imposed a tax under 17 this Section on the selling price of motor fuel or gasohol 18 before the effective date of this amendatory Act of the 91st 19 General Assembly shall not increase the rate of the tax on or 20 after that date. If, as a result of the provisions of this 21 amendatory Act of the 91st General Assembly, the rate of tax 22 imposed on the sale of motor fuel and gasohol by the 23 Retailers' Occupation Tax Act returns to 6.25%, then the 24 prohibition against imposing a tax on the sale of motor fuel 25 and gasohol and the prohibition against an increase in the 26 rate of any tax already imposed on the sale of motor fuel and 27 gasohol are no longer in effect. This amendatory Act of the 28 91st General Assembly is a denial and limitation of home rule 29 powers to tax under subsection (g) of Section 6 of Article 30 VII of the Illinois Constitution. 31 Persons subject to any tax imposed pursuant to the 32 authority granted in this Section may reimburse themselves 33 for their serviceman's tax liability hereunder by separately 34 stating such tax as an additional charge, which charge may be SB1310 Engrossed -107- LRB9110257SMdv 1 stated in combination, in a single amount, with State tax 2 which servicemen are authorized to collect under the Service 3 Use Tax Act, pursuant to such bracket schedules as the 4 Department may prescribe. 5 Whenever the Department determines that a refund should 6 be made under this Section to a claimant instead of issuing 7 credit memorandum, the Department shall notify the State 8 Comptroller, who shall cause the order to be drawn for the 9 amount specified, and to the person named, in such 10 notification from the Department. Such refund shall be paid 11 by the State Treasurer out of the home rule municipal 12 retailers' occupation tax fund. 13 The Department shall forthwith pay over to the State 14 Treasurer, ex-officio, as trustee, all taxes and penalties 15 collected hereunder. On or before the 25th day of each 16 calendar month, the Department shall prepare and certify to 17 the Comptroller the disbursement of stated sums of money to 18 named municipalities, the municipalities to be those from 19 which suppliers and servicemen have paid taxes or penalties 20 hereunder to the Department during the second preceding 21 calendar month. The amount to be paid to each municipality 22 shall be the amount (not including credit memoranda) 23 collected hereunder during the second preceding calendar 24 month by the Department, and not including an amount equal to 25 the amount of refunds made during the second preceding 26 calendar month by the Department on behalf of such 27 municipality. Within 10 days after receipt, by the 28 Comptroller, of the disbursement certification to the 29 municipalities, provided for in this Section to be given to 30 the Comptroller by the Department, the Comptroller shall 31 cause the orders to be drawn for the respective amounts in 32 accordance with the directions contained in such 33 certification. 34 In addition to the disbursement required by the preceding SB1310 Engrossed -108- LRB9110257SMdv 1 paragraph and in order to mitigate delays caused by 2 distribution procedures, an allocation shall, if requested, 3 be made within 10 days after January 14, 1991, and in 4 November of 1991 and each year thereafter, to each 5 municipality that received more than $500,000 during the 6 preceding fiscal year, (July 1 through June 30) whether 7 collected by the municipality or disbursed by the Department 8 as required by this Section. Within 10 days after January 14, 9 1991, participating municipalities shall notify the 10 Department in writing of their intent to participate. In 11 addition, for the initial distribution, participating 12 municipalities shall certify to the Department the amounts 13 collected by the municipality for each month under its home 14 rule occupation and service occupation tax during the period 15 July 1, 1989 through June 30, 1990. The allocation within 10 16 days after January 14, 1991, shall be in an amount equal to 17 the monthly average of these amounts, excluding the 2 months 18 of highest receipts. Monthly average for the period of July 19 1, 1990 through June 30, 1991 will be determined as follows: 20 the amounts collected by the municipality under its home rule 21 occupation and service occupation tax during the period of 22 July 1, 1990 through September 30, 1990, plus amounts 23 collected by the Department and paid to such municipality 24 through June 30, 1991, excluding the 2 months of highest 25 receipts. The monthly average for each subsequent period of 26 July 1 through June 30 shall be an amount equal to the 27 monthly distribution made to each such municipality under the 28 preceding paragraph during this period, excluding the 2 29 months of highest receipts. The distribution made in 30 November 1991 and each year thereafter under this paragraph 31 and the preceding paragraph shall be reduced by the amount 32 allocated and disbursed under this paragraph in the preceding 33 period of July 1 through June 30. The Department shall 34 prepare and certify to the Comptroller for disbursement the SB1310 Engrossed -109- LRB9110257SMdv 1 allocations made in accordance with this paragraph. 2 Nothing in this Section shall be construed to authorize a 3 municipality to impose a tax upon the privilege of engaging 4 in any business which under the constitution of the United 5 States may not be made the subject of taxation by this State. 6 An ordinance or resolution imposing or discontinuing a 7 tax hereunder or effecting a change in the rate thereof shall 8 be adopted and a certified copy thereof filed with the 9 Department on or before the first day of June, whereupon the 10 Department shall proceed to administer and enforce this 11 Section as of the first day of September next following such 12 adoption and filing. Beginning January 1, 1992, an ordinance 13 or resolution imposing or discontinuing the tax hereunder or 14 effecting a change in the rate thereof shall be adopted and a 15 certified copy thereof filed with the Department on or before 16 the first day of July, whereupon the Department shall proceed 17 to administer and enforce this Section as of the first day of 18 October next following such adoption and filing. Beginning 19 January 1, 1993, an ordinance or resolution imposing or 20 discontinuing the tax hereunder or effecting a change in the 21 rate thereof shall be adopted and a certified copy thereof 22 filed with the Department on or before the first day of 23 October, whereupon the Department shall proceed to administer 24 and enforce this Section as of the first day of January next 25 following such adoption and filing. However, a municipality 26 located in a county with a population in excess of 3,000,000 27 that elected to become a home rule unit at the general 28 primary election in 1994 may adopt an ordinance or resolution 29 imposing the tax under this Section and file a certified copy 30 of the ordinance or resolution with the Department on or 31 before July 1, 1994. The Department shall then proceed to 32 administer and enforce this Section as of October 1, 1994. 33 Beginning April 1, 1998, an ordinance or resolution imposing 34 or discontinuing the tax hereunder or effecting a change in SB1310 Engrossed -110- LRB9110257SMdv 1 the rate thereof shall either (i) be adopted and a certified 2 copy thereof filed with the Department on or before the first 3 day of April, whereupon the Department shall proceed to 4 administer and enforce this Section as of the first day of 5 July next following the adoption and filing; or (ii) be 6 adopted and a certified copy thereof filed with the 7 Department on or before the first day of October, whereupon 8 the Department shall proceed to administer and enforce this 9 Section as of the first day of January next following the 10 adoption and filing. 11 Any unobligated balance remaining in the Municipal 12 Retailers' Occupation Tax Fund on December 31, 1989, which 13 fund was abolished by Public Act 85-1135, and all receipts of 14 municipal tax as a result of audits of liability periods 15 prior to January 1, 1990, shall be paid into the Local 16 Government Tax Fund, for distribution as provided by this 17 Section prior to the enactment of Public Act 85-1135. All 18 receipts of municipal tax as a result of an assessment not 19 arising from an audit, for liability periods prior to January 20 1, 1990, shall be paid into the Local Government Tax Fund for 21 distribution before July 1, 1990, as provided by this Section 22 prior to the enactment of Public Act 85-1135, and on and 23 after July 1, 1990, all such receipts shall be distributed as 24 provided in Section 6z-18 of the State Finance Act. 25 As used in this Section, "municipal" and "municipality" 26 means a city, village or incorporated town, including an 27 incorporated town which has superseded a civil township. 28 This Section shall be known and may be cited as the Home 29 Rule Municipal Service Occupation Tax Act. 30 (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.) 31 (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6) 32 Sec. 8-11-6. Home Rule Municipal Use Tax Act. 33 (a) The corporate authorities of a home rule SB1310 Engrossed -111- LRB9110257SMdv 1 municipality may impose a tax upon the privilege of using, in 2 such municipality, any item of tangible personal property 3 which is purchased at retail from a retailer, and which is 4 titled or registered at a location within the corporate 5 limits of such home rule municipality with an agency of this 6 State's government, at a rate which is an increment of 1/4% 7 and based on the selling price of such tangible personal 8 property, as "selling price" is defined in the Use Tax Act. 9 In home rule municipalities with less than 2,000,000 10 inhabitants, the tax shall be collected by the municipality 11 imposing the tax from persons whose Illinois address for 12 titling or registration purposes is given as being in such 13 municipality. 14 (b) In home rule municipalities with 2,000,000 or more 15 inhabitants, the corporate authorities of the municipality 16 may additionally impose a tax beginning July 1, 1991 upon the 17 privilege of using in the municipality, any item of tangible 18 personal property, other than tangible personal property 19 titled or registered with an agency of the State's 20 government, that is purchased at retail from a retailer 21 located outside the corporate limits of the municipality, at 22 a rate that is an increment of 1/4% not to exceed 1% and 23 based on the selling price of the tangible personal property, 24 as "selling price" is defined in the Use Tax Act. Such tax 25 shall be collected from the purchaser by the municipality 26 imposing such tax. 27 To prevent multiple home rule taxation, the use in a home 28 rule municipality of tangible personal property that is 29 acquired outside the municipality and caused to be brought 30 into the municipality by a person who has already paid a home 31 rule municipal tax in another municipality in respect to the 32 sale, purchase, or use of that property, shall be exempt to 33 the extent of the amount of the tax properly due and paid in 34 the other home rule municipality. SB1310 Engrossed -112- LRB9110257SMdv 1 (b-5) A home rule municipality that has not imposed a 2 tax under this Section on the use of motor fuel or gasohol 3 before the effective date of this amendatory Act of the 91st 4 General Assembly shall not impose such a tax on or after that 5 date. A home rule municipality that has imposed a tax under 6 this Section on the use of motor fuel or gasohol before the 7 effective date of this amendatory Act of the 91st General 8 Assembly shall not increase the rate of the tax on or after 9 that date. If, as a result of the provisions of this 10 amendatory Act of the 91st General Assembly, the rate of tax 11 imposed on the sale of motor fuel and gasohol by the 12 Retailers' Occupation Tax Act returns to 6.25%, then the 13 prohibition against imposing a tax on the sale of motor fuel 14 and gasohol and the prohibition against an increase in the 15 rate of any tax already imposed on the sale of motor fuel and 16 gasohol are no longer in effect. This amendatory Act of the 17 91st General Assembly is a denial and limitation of home rule 18 powers to tax under subsection (g) of Section 6 of Article 19 VII of the Illinois Constitution. 20 (c) If a municipality having 2,000,000 or more 21 inhabitants imposes the tax authorized by subsection (a), 22 then the tax shall be collected by the Illinois Department of 23 Revenue when the property is purchased at retail from a 24 retailer in the county in which the home rule municipality 25 imposing the tax is located, and in all contiguous counties. 26 The tax shall be remitted to the State, or an exemption 27 determination must be obtained from the Department before the 28 title or certificate of registration for the property may be 29 issued. The tax or proof of exemption may be transmitted to 30 the Department by way of the State agency with which, or 31 State officer with whom, the tangible personal property must 32 be titled or registered if the Department and that agency or 33 State officer determine that this procedure will expedite the 34 processing of applications for title or registration. SB1310 Engrossed -113- LRB9110257SMdv 1 The Department shall have full power to administer and 2 enforce this Section to collect all taxes, penalties and 3 interest due hereunder, to dispose of taxes, penalties and 4 interest so collected in the manner hereinafter provided, and 5 determine all rights to credit memoranda or refunds arising 6 on account of the erroneous payment of tax, penalty or 7 interest hereunder. In the administration of and compliance 8 with this Section the Department and persons who are subject 9 to this Section shall have the same rights, remedies, 10 privileges, immunities, powers and duties, and be subject to 11 the same conditions, restrictions, limitations, penalties and 12 definitions of terms, and employ the same modes of procedure 13 as are prescribed in Sections 2 (except the definition of 14 "retailer maintaining a place of business in this State"), 3 15 (except provisions pertaining to the State rate of tax, and 16 except provisions concerning collection or refunding of the 17 tax by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22 18 of the Use Tax Act, which are not inconsistent with this 19 Section, as fully as if provisions contained in those 20 Sections of the Use Tax Act were set forth herein. 21 Whenever the Department determines that a refund shall be 22 made under this Section to a claimant instead of issuing a 23 credit memorandum, the Department shall notify the State 24 Comptroller, who shall cause the order to be drawn for the 25 amount specified, and to the person named, in such 26 notification from the Department. Such refund shall be paid 27 by the State Treasurer out of the home rule municipal 28 retailers' occupation tax fund. 29 The Department shall forthwith pay over to the State 30 Treasurer, ex officio, as trustee, all taxes, penalties and 31 interest collected hereunder. On or before the 25th day of 32 each calendar month, the Department shall prepare and certify 33 to the State Comptroller the disbursement of stated sums of 34 money to named municipalities, the municipality in each SB1310 Engrossed -114- LRB9110257SMdv 1 instance to be that municipality from which the Department 2 during the second preceding calendar month, collected 3 municipal use tax from any person whose Illinois address for 4 titling or registration purposes is given as being in such 5 municipality. The amount to be paid to each municipality 6 shall be the amount (not including credit memoranda) 7 collected hereunder during the second preceding calendar 8 month by the Department, and not including an amount equal to 9 the amount of refunds made during the second preceding 10 calendar month by the Department on behalf of such 11 municipality, less the amount expended during the second 12 preceding month by the Department to be paid from the 13 appropriation to the Department from the Home Rule Municipal 14 Retailers' Occupation Tax Trust Fund. The appropriation to 15 cover the costs incurred by the Department in administering 16 and enforcing this Section shall not exceed 2% of the amount 17 estimated to be deposited into the Home Rule Municipal 18 Retailers' Occupation Tax Trust Fund during the fiscal year 19 for which the appropriation is made. Within 10 days after 20 receipt by the State Comptroller of the disbursement 21 certification to the municipalities provided for in this 22 Section to be given to the State Comptroller by the 23 Department, the State Comptroller shall cause the orders to 24 be drawn for the respective amounts in accordance with the 25 directions contained in that certification. 26 Any ordinance imposing or discontinuing any tax to be 27 collected and enforced by the Department under this Section 28 shall be adopted and a certified copy thereof filed with the 29 Department on or before October 1, whereupon the Department 30 of Revenue shall proceed to administer and enforce this 31 Section on behalf of the municipalities as of January 1 next 32 following such adoption and filing. Beginning April 1, 1998, 33 any ordinance imposing or discontinuing any tax to be 34 collected and enforced by the Department under this Section SB1310 Engrossed -115- LRB9110257SMdv 1 shall either (i) be adopted and a certified copy thereof 2 filed with the Department on or before April 1, whereupon the 3 Department of Revenue shall proceed to administer and enforce 4 this Section on behalf of the municipalities as of July 1 5 next following the adoption and filing; or (ii) be adopted 6 and a certified copy thereof filed with the Department on or 7 before October 1, whereupon the Department of Revenue shall 8 proceed to administer and enforce this Section on behalf of 9 the municipalities as of January 1 next following the 10 adoption and filing. 11 Nothing in this subsection (c) shall prevent a home rule 12 municipality from collecting the tax pursuant to subsection 13 (a) in any situation where such tax is not collected by the 14 Department of Revenue under this subsection (c). 15 (d) Any unobligated balance remaining in the Municipal 16 Retailers' Occupation Tax Fund on December 31, 1989, which 17 fund was abolished by Public Act 85-1135, and all receipts of 18 municipal tax as a result of audits of liability periods 19 prior to January 1, 1990, shall be paid into the Local 20 Government Tax Fund, for distribution as provided by this 21 Section prior to the enactment of Public Act 85-1135. All 22 receipts of municipal tax as a result of an assessment not 23 arising from an audit, for liability periods prior to January 24 1, 1990, shall be paid into the Local Government Tax Fund for 25 distribution before July 1, 1990, as provided by this Section 26 prior to the enactment of Public Act 85-1135, and on and 27 after July 1, 1990, all such receipts shall be distributed as 28 provided in Section 6z-18 of the State Finance Act. 29 (e) As used in this Section, "Municipal" and 30 "Municipality" means a city, village or incorporated town, 31 including an incorporated town which has superseded a civil 32 township. 33 (f) This Section shall be known and may be cited as the 34 Home Rule Municipal Use Tax Act. SB1310 Engrossed -116- LRB9110257SMdv 1 (Source: P.A. 90-562, eff. 12-16-97; 90-689, eff. 7-31-98; 2 91-51, eff. 6-30-99.) 3 (65 ILCS 5/8-11-15) (from Ch. 24, par. 8-11-15) 4 Sec. 8-11-15. Municipal motor fuel. 5 (a) The corporate authorities of a municipality of over 6 100,000 inhabitants may, upon approval of the electors of the 7 municipality pursuant to subsection (b), impose a tax of one 8 cent per gallon on motor fuel sold at retail within such 9 municipality. A tax imposed pursuant to this Section shall be 10 paid in addition to any other taxes on such motor fuel. 11 A municipality that has not imposed a tax under this 12 Section before the effective date of this amendatory Act of 13 the 91st General Assembly shall not impose such a tax on or 14 after that date. A municipality that has imposed a tax under 15 this Section before the effective date of this amendatory Act 16 of the 91st General Assembly shall not increase the rate of 17 the tax on or after that date. If, as a result of the 18 provisions of this amendatory Act of the 91st General 19 Assembly, the rate of tax imposed on the sale of motor fuel 20 and gasohol by the Retailers' Occupation Tax Act returns to 21 6.25%, then the prohibition against imposing a tax on the 22 sale of motor fuel and gasohol and the prohibition against an 23 increase in the rate of any tax already imposed on the sale 24 of motor fuel and gasohol are no longer in effect. This 25 amendatory Act of the 91st General Assembly is a denial and 26 limitation of home rule powers to tax under subsection (g) of 27 Section 6 of Article VII of the Illinois Constitution. 28 (b) The corporate authorities of the municipality may by 29 resolution call for the submission to the electors of the 30 municipality of the question of whether the municipality 31 shall impose such tax. Such question shall be certified by 32 the municipal clerk to the election authority in accordance 33 with Section 28-5 of The Election Code. The question shall be SB1310 Engrossed -117- LRB9110257SMdv 1 in substantially the following form: 2 ------------------------------------------------------------- 3 Shall the city (village or 4 incorporated town) of ....... YES 5 impose a tax of one cent per ----------------------------- 6 gallon on motor fuel sold at NO 7 retail within its boundaries? 8 ------------------------------------------------------------- 9 If a majority of the electors in the municipality voting 10 upon the question vote in the affirmative, such tax shall be 11 imposed. 12 (c) The purchaser of the motor fuel shall be liable for 13 payment of a tax imposed pursuant to this Section. This 14 Section shall not be construed to impose a tax on the 15 occupation of persons engaged in the sale of motor fuel. 16 If a municipality imposes a tax on motor fuel pursuant to 17 this Section, it shall be the duty of any person engaged in 18 the retail sale of motor fuel within such municipality to 19 collect such tax from the purchaser at the same time he 20 collects the purchase price of the motor fuel and to pay over 21 such tax to the municipality as prescribed by the ordinance 22 of the municipality imposing such tax. 23 (d) For purposes of this Section, "motor fuel" shall 24 have the same meaning as provided in the "Motor Fuel Tax 25 Law". 26 (Source: P.A. 84-1099.) 27 Section 35. The Civic Center Code is amended by changing 28 Section 245-12 as follows: 29 (70 ILCS 200/245-12) 30 Sec. 245-12. Use and occupation taxes. 31 (a) The Authority may adopt a resolution that authorizes 32 a referendum on the question of whether the Authority shall SB1310 Engrossed -118- LRB9110257SMdv 1 be authorized to impose a retailers' occupation tax, a 2 service occupation tax, and a use tax in one-quarter percent 3 increments at a rate not to exceed 1%. The Authority shall 4 certify the question to the proper election authorities who 5 shall submit the question to the voters of the metropolitan 6 area at the next regularly scheduled election in accordance 7 with the general election law. The question shall be in 8 substantially the following form: 9 "Shall the Salem Civic Center Authority be authorized to 10 impose a retailers' occupation tax, a service occupation 11 tax, and a use tax at the rate of (rate) for the sole 12 purpose of obtaining funds for the support, construction, 13 maintenance, or financing of a facility of the 14 Authority?" 15 Votes shall be recorded as "yes" or "no". If a majority 16 of all votes cast on the proposition are in favor of the 17 proposition, the Authority is authorized to impose the tax. 18 (b) The Authority shall impose the retailers' occupation 19 tax upon all persons engaged in the business of selling 20 tangible personal property at retail in the metropolitan 21 area, at the rate approved by referendum, on the gross 22 receipts from the sales made in the course of such business 23 within the metropolitan area. The tax imposed under this 24 Section and all civil penalties that may be assessed as an 25 incident thereof shall be collected and enforced by the 26 Department of Revenue. The Department has full power to 27 administer and enforce this Section; to collect all taxes and 28 penalties so collected in the manner provided in this 29 Section; and to determine all rights to credit memoranda 30 arising on account of the erroneous payment of tax or penalty 31 hereunder. In the administration of, and compliance with, 32 this Section, the Department and persons who are subject to 33 this Section shall (i) have the same rights, remedies, 34 privileges, immunities, powers and duties, (ii) be subject to SB1310 Engrossed -119- LRB9110257SMdv 1 the same conditions, restrictions, limitations, penalties, 2 exclusions, exemptions, and definitions of terms, and (iii) 3 employ the same modes of procedure as are prescribed in 4 Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 5 2-5, 2-5.5, 2-10 (in respect to all provisions therein other 6 than the State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 7 (except as to the disposition of taxes and penalties 8 collected and provisions related to quarter monthly 9 payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 10 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the 11 Retailers' Occupation Tax Act and Section 3-7 of the Uniform 12 Penalty and Interest Act, as fully as if those provisions 13 were set forth in this subsection. 14 If the Authority has not imposed a tax under this 15 subsection on the sale of motor fuel or gasohol before the 16 effective date of this amendatory Act of the 91st General 17 Assembly, then the Authority shall not impose such a tax on 18 or after that date. If the Authority has imposed a tax under 19 this subsection on the sale of motor fuel or gasohol before 20 the effective date of this amendatory Act of the 91st General 21 Assembly, then the Authority shall not increase the rate of 22 the tax on or after that date. If, as a result of the 23 provisions of this amendatory Act of the 91st General 24 Assembly, the rate of tax imposed on the sale of motor fuel 25 and gasohol by the Retailers' Occupation Tax Act returns to 26 6.25%, then the prohibition against imposing a tax on the 27 sale of motor fuel and gasohol and the prohibition against an 28 increase in the rate of any tax already imposed on the sale 29 of motor fuel and gasohol are no longer in effect. 30 Persons subject to any tax imposed under this subsection 31 may reimburse themselves for their seller's tax liability by 32 separately stating the tax as an additional charge, which 33 charge may be stated in combination, in a single amount, with 34 State taxes that sellers are required to collect, in SB1310 Engrossed -120- LRB9110257SMdv 1 accordance with such bracket schedules as the Department may 2 prescribe. 3 Whenever the Department determines that a refund should 4 be made under this subsection to a claimant instead of 5 issuing a credit memorandum, the Department shall notify the 6 State Comptroller, who shall cause the warrant to be drawn 7 for the amount specified, and to the person named, in the 8 notification from the Department. The refund shall be paid 9 by the State Treasurer out of the tax fund referenced under 10 paragraph (g) of this Section. 11 If a tax is imposed under this subsection (b), a tax 12 shall also be imposed at the same rate under subsections (c) 13 and (d) of this Section. 14 For the purpose of determining whether a tax authorized 15 under this Section is applicable, a retail sale, by a 16 producer of coal or other mineral mined in Illinois, is a 17 sale at retail at the place where the coal or other mineral 18 mined in Illinois is extracted from the earth. This 19 paragraph does not apply to coal or other mineral when it is 20 delivered or shipped by the seller to the purchaser at a 21 point outside Illinois so that the sale is exempt under the 22 Federal Constitution as a sale in interstate or foreign 23 commerce. 24 Nothing in this Section shall be construed to authorize 25 the Authority to impose a tax upon the privilege of engaging 26 in any business which under the Constitution of the United 27 States may not be made the subject of taxation by this State. 28 (c) If a tax has been imposed under subsection (b), a 29 service occupation tax shall also be imposed at the same rate 30 upon all persons engaged, in the metropolitan area, in the 31 business of making sales of service, who, as an incident to 32 making those sales of service, transfer tangible personal 33 property within the metropolitan area as an incident to a 34 sale of service. The tax imposed under this subsection and SB1310 Engrossed -121- LRB9110257SMdv 1 all civil penalties that may be assessed as an incident 2 thereof shall be collected and enforced by the Department of 3 Revenue. The Department has full power to administer and 4 enforce this paragraph; to collect all taxes and penalties 5 due hereunder; to dispose of taxes and penalties so collected 6 in the manner hereinafter provided; and to determine all 7 rights to credit memoranda arising on account of the 8 erroneous payment of tax or penalty hereunder. In the 9 administration of, and compliance with this paragraph, the 10 Department and persons who are subject to this paragraph 11 shall (i) have the same rights, remedies, privileges, 12 immunities, powers, and duties, (ii) be subject to the same 13 conditions, restrictions, limitations, penalties, exclusions, 14 exemptions, and definitions of terms, and (iii) employ the 15 same modes of procedure as are prescribed in Sections 2 16 (except that the reference to State in the definition of 17 supplier maintaining a place of business in this State shall 18 mean the metropolitan area), 2a, 2b, 3 through 3-55 (in 19 respect to all provisions therein other than the State rate 20 of tax), 4 (except that the reference to the State shall be 21 to the Authority), 5, 7, 8 (except that the jurisdiction to 22 which the tax shall be a debt to the extent indicated in that 23 Section 8 shall be the Authority), 9 (except as to the 24 disposition of taxes and penalties collected, and except that 25 the returned merchandise credit for this tax may not be taken 26 against any State tax), 11, 12 (except the reference therein 27 to Section 2b of the Retailers' Occupation Tax Act), 13 28 (except that any reference to the State shall mean the 29 Authority), 15, 16, 17, 18, 19 and 20 of the Service 30 Occupation Tax Act and Section 3-7 of the Uniform Penalty and 31 Interest Act, as fully as if those provisions were set forth 32 herein. 33 If the Authority has not imposed a tax under this 34 subsection on the selling price of motor fuel or gasohol SB1310 Engrossed -122- LRB9110257SMdv 1 before the effective date of this amendatory Act of the 91st 2 General Assembly, then the Authority shall not impose such a 3 tax on or after that date. If the Authority has imposed a 4 tax under this subsection on the selling price of motor fuel 5 or gasohol before the effective date of this amendatory Act 6 of the 91st General Assembly, then the Authority shall not 7 increase the rate of the tax on or after that date. If, as a 8 result of the provisions of this amendatory Act of the 91st 9 General Assembly, the rate of tax imposed on the sale of 10 motor fuel and gasohol by the Retailers' Occupation Tax Act 11 returns to 6.25%, then the prohibition against imposing a tax 12 on the sale of motor fuel and gasohol and the prohibition 13 against an increase in the rate of any tax already imposed on 14 the sale of motor fuel and gasohol are no longer in effect. 15 Persons subject to any tax imposed under the authority 16 granted in this subsection may reimburse themselves for their 17 serviceman's tax liability by separately stating the tax as 18 an additional charge, which charge may be stated in 19 combination, in a single amount, with State tax that 20 servicemen are authorized to collect under the Service Use 21 Tax Act, in accordance with such bracket schedules as the 22 Department may prescribe. 23 Whenever the Department determines that a refund should 24 be made under this subsection to a claimant instead of 25 issuing a credit memorandum, the Department shall notify the 26 State Comptroller, who shall cause the warrant to be drawn 27 for the amount specified, and to the person named, in the 28 notification from the Department. The refund shall be paid 29 by the State Treasurer out of the tax fund referenced under 30 paragraph (g) of this Section. 31 Nothing in this paragraph shall be construed to authorize 32 the Authority to impose a tax upon the privilege of engaging 33 in any business which under the Constitution of the United 34 States may not be made the subject of taxation by the State. SB1310 Engrossed -123- LRB9110257SMdv 1 (d) If a tax has been imposed under subsection (b), a 2 use tax shall also be imposed at the same rate upon the 3 privilege of using, in the metropolitan area, any item of 4 tangible personal property that is purchased outside the 5 metropolitan area at retail from a retailer, and that is 6 titled or registered at a location within the metropolitan 7 area with an agency of this State's government. "Selling 8 price" is defined as in the Use Tax Act. The tax shall be 9 collected from persons whose Illinois address for titling or 10 registration purposes is given as being in the metropolitan 11 area. The tax shall be collected by the Department of 12 Revenue for the Authority. The tax must be paid to the State, 13 or an exemption determination must be obtained from the 14 Department of Revenue, before the title or certificate of 15 registration for the property may be issued. The tax or 16 proof of exemption may be transmitted to the Department by 17 way of the State agency with which, or the State officer with 18 whom, the tangible personal property must be titled or 19 registered if the Department and the State agency or State 20 officer determine that this procedure will expedite the 21 processing of applications for title or registration. 22 The Department has full power to administer and enforce 23 this paragraph; to collect all taxes, penalties and interest 24 due hereunder; to dispose of taxes, penalties and interest so 25 collected in the manner hereinafter provided; and to 26 determine all rights to credit memoranda or refunds arising 27 on account of the erroneous payment of tax, penalty or 28 interest hereunder. In the administration of, and compliance 29 with, this subsection, the Department and persons who are 30 subject to this paragraph shall (i) have the same rights, 31 remedies, privileges, immunities, powers, and duties, (ii) be 32 subject to the same conditions, restrictions, limitations, 33 penalties, exclusions, exemptions, and definitions of terms, 34 and (iii) employ the same modes of procedure as are SB1310 Engrossed -124- LRB9110257SMdv 1 prescribed in Sections 2 (except the definition of "retailer 2 maintaining a place of business in this State"), 3, 3-5, 3 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, 4, 6, 7, 8 (except 4 that the jurisdiction to which the tax shall be a debt to the 5 extent indicated in that Section 8 shall be the Authority), 9 6 (except provisions relating to quarter monthly payments), 10, 7 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22 of the Use 8 Tax Act and Section 3-7 of the Uniform Penalty and Interest 9 Act, that are not inconsistent with this paragraph, as fully 10 as if those provisions were set forth herein. 11 If the Authority has not imposed a tax under this 12 subsection on the use of motor fuel or gasohol before the 13 effective date of this amendatory Act of the 91st General 14 Assembly, then the Authority shall not impose such a tax on 15 or after that date. If the Authority has imposed a tax under 16 this subsection on the use of motor fuel or gasohol before 17 the effective date of this amendatory Act of the 91st General 18 Assembly, then the Authority shall not increase the rate of 19 the tax on or after that date. If, as a result of the 20 provisions of this amendatory Act of the 91st General 21 Assembly, the rate of tax imposed on the sale of motor fuel 22 and gasohol by the Retailers' Occupation Tax Act returns to 23 6.25%, then the prohibition against imposing a tax on the 24 sale of motor fuel and gasohol and the prohibition against an 25 increase in the rate of any tax already imposed on the sale 26 of motor fuel and gasohol are no longer in effect. 27 Whenever the Department determines that a refund should 28 be made under this subsection to a claimant instead of 29 issuing a credit memorandum, the Department shall notify the 30 State Comptroller, who shall cause the order to be drawn for 31 the amount specified, and to the person named, in the 32 notification from the Department. The refund shall be paid by 33 the State Treasurer out of the tax fund referenced under 34 paragraph (g) of this Section. SB1310 Engrossed -125- LRB9110257SMdv 1 (e) A certificate of registration issued by the State 2 Department of Revenue to a retailer under the Retailers' 3 Occupation Tax Act or under the Service Occupation Tax Act 4 shall permit the registrant to engage in a business that is 5 taxed under the tax imposed under paragraphs (b), (c), or (d) 6 of this Section and no additional registration shall be 7 required. A certificate issued under the Use Tax Act or the 8 Service Use Tax Act shall be applicable with regard to any 9 tax imposed under paragraph (c) of this Section. 10 (f) The results of any election authorizing a 11 proposition to impose a tax under this Section or effecting a 12 change in the rate of tax shall be certified by the proper 13 election authorities and filed with the Illinois Department 14 on or before the first day of April. In addition, an 15 ordinance imposing, discontinuing, or effecting a change in 16 the rate of tax under this Section shall be adopted and a 17 certified copy thereof filed with the Department on or before 18 the first day of April. After proper receipt of such 19 certifications, the Department shall proceed to administer 20 and enforce this Section as of the first day of July next 21 following such adoption and filing. 22 (g) The Department of Revenue shall, upon collecting any 23 taxes and penalties as provided in this Section, pay the 24 taxes and penalties over to the State Treasurer as trustee 25 for the Authority. The taxes and penalties shall be held in a 26 trust fund outside the State Treasury. On or before the 25th 27 day of each calendar month, the Department of Revenue shall 28 prepare and certify to the Comptroller of the State of 29 Illinois the amount to be paid to the Authority, which shall 30 be the balance in the fund, less any amount determined by the 31 Department to be necessary for the payment of refunds. Within 32 10 days after receipt by the Comptroller of the certification 33 of the amount to be paid to the Authority, the Comptroller 34 shall cause an order to be drawn for payment for the amount SB1310 Engrossed -126- LRB9110257SMdv 1 in accordance with the directions contained in the 2 certification. Amounts received from the tax imposed under 3 this Section shall be used only for the support, 4 construction, maintenance, or financing of a facility of the 5 Authority. 6 (h) When certifying the amount of a monthly disbursement 7 to the Authority under this Section, the Department shall 8 increase or decrease the amounts by an amount necessary to 9 offset any miscalculation of previous disbursements. The 10 offset amount shall be the amount erroneously disbursed 11 within the previous 6 months from the time a miscalculation 12 is discovered. 13 (i) This Section may be cited as the Salem Civic Center 14 Use and Occupation Tax Law. 15 (Source: P.A. 90-328, eff. 1-1-98.) 16 Section 40. The Local Mass Transit District Act is 17 amended by changing Section 5.01 as follows: 18 (70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01) 19 Sec. 5.01. Metro East Mass Transit District; use and 20 occupation taxes. 21 (a) The Board of Trustees of any Metro East Mass Transit 22 District may, by ordinance adopted with the concurrence of 23 two-thirds of the then trustees, impose throughout the 24 District any or all of the taxes and fees provided in this 25 Section. All taxes and fees imposed under this Section shall 26 be used only for public mass transportation systems, and the 27 amount used to provide mass transit service to unserved areas 28 of the District shall be in the same proportion to the total 29 proceeds as the number of persons residing in the unserved 30 areas is to the total population of the District. Except as 31 otherwise provided in this Act, taxes imposed under this 32 Section and civil penalties imposed incident thereto shall be SB1310 Engrossed -127- LRB9110257SMdv 1 collected and enforced by the State Department of Revenue. 2 The Department shall have the power to administer and enforce 3 the taxes and to determine all rights for refunds for 4 erroneous payments of the taxes. 5 (b) The Board may impose a Metro East Mass Transit 6 District Retailers' Occupation Tax upon all persons engaged 7 in the business of selling tangible personal property at 8 retail in the district at a rate of 1/4 of 1%, or as 9 authorized under subsection (d-5) of this Section, of the 10 gross receipts from the sales made in the course of such 11 business within the district. The tax imposed under this 12 Section and all civil penalties that may be assessed as an 13 incident thereof shall be collected and enforced by the State 14 Department of Revenue. The Department shall have full power 15 to administer and enforce this Section; to collect all taxes 16 and penalties so collected in the manner hereinafter 17 provided; and to determine all rights to credit memoranda 18 arising on account of the erroneous payment of tax or penalty 19 hereunder. In the administration of, and compliance with, 20 this Section, the Department and persons who are subject to 21 this Section shall have the same rights, remedies, 22 privileges, immunities, powers and duties, and be subject to 23 the same conditions, restrictions, limitations, penalties, 24 exclusions, exemptions and definitions of terms and employ 25 the same modes of procedure, as are prescribed in Sections 1, 26 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect 27 to all provisions therein other than the State rate of tax), 28 2c, 3 (except as to the disposition of taxes and penalties 29 collected), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 30 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the 31 Retailers' Occupation Tax Act and Section 3-7 of the Uniform 32 Penalty and Interest Act, as fully as if those provisions 33 were set forth herein. 34 If the Board has not imposed a tax under this subsection SB1310 Engrossed -128- LRB9110257SMdv 1 on the sale of motor fuel or gasohol before the effective 2 date of this amendatory Act of the 91st General Assembly, 3 then the Board shall not impose such a tax on or after that 4 date. If the Board has imposed a tax under this subsection 5 on the sale of motor fuel or gasohol before the effective 6 date of this amendatory Act of the 91st General Assembly, 7 then the Board shall not increase the rate of the tax on or 8 after that date. If, as a result of the provisions of this 9 amendatory Act of the 91st General Assembly, the rate of tax 10 imposed on the sale of motor fuel and gasohol by the 11 Retailers' Occupation Tax Act returns to 6.25%, then the 12 prohibition against imposing a tax on the sale of motor fuel 13 and gasohol and the prohibition against an increase in the 14 rate of any tax already imposed on the sale of motor fuel and 15 gasohol are no longer in effect. 16 Persons subject to any tax imposed under the Section may 17 reimburse themselves for their seller's tax liability 18 hereunder by separately stating the tax as an additional 19 charge, which charge may be stated in combination, in a 20 single amount, with State taxes that sellers are required to 21 collect under the Use Tax Act, in accordance with such 22 bracket schedules as the Department may prescribe. 23 Whenever the Department determines that a refund should 24 be made under this Section to a claimant instead of issuing a 25 credit memorandum, the Department shall notify the State 26 Comptroller, who shall cause the warrant to be drawn for the 27 amount specified, and to the person named, in the 28 notification from the Department. The refund shall be paid 29 by the State Treasurer out of the Metro East Mass Transit 30 District tax fund established under paragraph (g) of this 31 Section. 32 If a tax is imposed under this subsection (b), a tax 33 shall also be imposed under subsections (c) and (d) of this 34 Section. SB1310 Engrossed -129- LRB9110257SMdv 1 For the purpose of determining whether a tax authorized 2 under this Section is applicable, a retail sale, by a 3 producer of coal or other mineral mined in Illinois, is a 4 sale at retail at the place where the coal or other mineral 5 mined in Illinois is extracted from the earth. This 6 paragraph does not apply to coal or other mineral when it is 7 delivered or shipped by the seller to the purchaser at a 8 point outside Illinois so that the sale is exempt under the 9 Federal Constitution as a sale in interstate or foreign 10 commerce. 11 Nothing in this Section shall be construed to authorize 12 the Metro East Mass Transit District to impose a tax upon the 13 privilege of engaging in any business which under the 14 Constitution of the United States may not be made the subject 15 of taxation by this State. 16 (c) If a tax has been imposed under subsection (b), a 17 Metro East Mass Transit District Service Occupation Tax shall 18 also be imposed upon all persons engaged, in the district, in 19 the business of making sales of service, who, as an incident 20 to making those sales of service, transfer tangible personal 21 property within the District, either in the form of tangible 22 personal property or in the form of real estate as an 23 incident to a sale of service. The tax rate shall be 1/4%, or 24 as authorized under subsection (d-5) of this Section, of the 25 selling price of tangible personal property so transferred 26 within the district. The tax imposed under this paragraph 27 and all civil penalties that may be assessed as an incident 28 thereof shall be collected and enforced by the State 29 Department of Revenue. The Department shall have full power 30 to administer and enforce this paragraph; to collect all 31 taxes and penalties due hereunder; to dispose of taxes and 32 penalties so collected in the manner hereinafter provided; 33 and to determine all rights to credit memoranda arising on 34 account of the erroneous payment of tax or penalty hereunder. SB1310 Engrossed -130- LRB9110257SMdv 1 In the administration of, and compliance with this paragraph, 2 the Department and persons who are subject to this paragraph 3 shall have the same rights, remedies, privileges, immunities, 4 powers and duties, and be subject to the same conditions, 5 restrictions, limitations, penalties, exclusions, exemptions 6 and definitions of terms and employ the same modes of 7 procedure as are prescribed in Sections 1a-1, 2 (except that 8 the reference to State in the definition of supplier 9 maintaining a place of business in this State shall mean the 10 Authority), 2a, 3 through 3-50 (in respect to all provisions 11 therein other than the State rate of tax), 4 (except that the 12 reference to the State shall be to the Authority), 5, 7, 8 13 (except that the jurisdiction to which the tax shall be a 14 debt to the extent indicated in that Section 8 shall be the 15 District), 9 (except as to the disposition of taxes and 16 penalties collected, and except that the returned merchandise 17 credit for this tax may not be taken against any State tax), 18 10, 11, 12 (except the reference therein to Section 2b of the 19 Retailers' Occupation Tax Act), 13 (except that any reference 20 to the State shall mean the District), the first paragraph of 21 Section 15, 16, 17, 18, 19 and 20 of the Service Occupation 22 Tax Act and Section 3-7 of the Uniform Penalty and Interest 23 Act, as fully as if those provisions were set forth herein. 24 If the Board has not imposed a tax under this subsection 25 on the selling price of motor fuel or gasohol before the 26 effective date of this amendatory Act of the 91st General 27 Assembly, then the Board shall not impose such a tax on or 28 after that date. If the Board has imposed a tax under this 29 subsection on the selling price of motor fuel or gasohol 30 before the effective date of this amendatory Act of the 31 General Assembly, then the Board shall not increase the rate 32 of the tax on or after that date. If, as a result of the 33 provisions of this amendatory Act of the 91st General 34 Assembly, the rate of tax imposed on the sale of motor fuel SB1310 Engrossed -131- LRB9110257SMdv 1 and gasohol by the Retailers' Occupation Tax Act returns to 2 6.25%, then the prohibition against imposing a tax on the 3 sale of motor fuel and gasohol and the prohibition against an 4 increase in the rate of any tax already imposed on the sale 5 of motor fuel and gasohol are no longer in effect. 6 Persons subject to any tax imposed under the authority 7 granted in this paragraph may reimburse themselves for their 8 serviceman's tax liability hereunder by separately stating 9 the tax as an additional charge, which charge may be stated 10 in combination, in a single amount, with State tax that 11 servicemen are authorized to collect under the Service Use 12 Tax Act, in accordance with such bracket schedules as the 13 Department may prescribe. 14 Whenever the Department determines that a refund should 15 be made under this paragraph to a claimant instead of issuing 16 a credit memorandum, the Department shall notify the State 17 Comptroller, who shall cause the warrant to be drawn for the 18 amount specified, and to the person named, in the 19 notification from the Department. The refund shall be paid 20 by the State Treasurer out of the Metro East Mass Transit 21 District tax fund established under paragraph (g) of this 22 Section. 23 Nothing in this paragraph shall be construed to authorize 24 the District 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 the State. 27 (d) If a tax has been imposed under subsection (b), a 28 Metro East Mass Transit District Use Tax shall also be 29 imposed upon the privilege of using, in the district, any 30 item of tangible personal property that is purchased outside 31 the district at retail from a retailer, and that is titled or 32 registered with an agency of this State's government, at a 33 rate of 1/4%, or as authorized under subsection (d-5) of this 34 Section, of the selling price of the tangible personal SB1310 Engrossed -132- LRB9110257SMdv 1 property within the District, as "selling price" is defined 2 in the Use Tax Act. The tax shall be collected from persons 3 whose Illinois address for titling or registration purposes 4 is given as being in the District. The tax shall be 5 collected by the Department of Revenue for the Metro East 6 Mass Transit District. The tax must be paid to the State, or 7 an exemption determination must be obtained from the 8 Department of Revenue, before the title or certificate of 9 registration for the property may be issued. The tax or 10 proof of exemption may be transmitted to the Department by 11 way of the State agency with which, or the State officer with 12 whom, the tangible personal property must be titled or 13 registered if the Department and the State agency or State 14 officer determine that this procedure will expedite the 15 processing of applications for title or registration. 16 The Department shall have full power to administer and 17 enforce this paragraph; to collect all taxes, penalties and 18 interest due hereunder; to dispose of taxes, penalties and 19 interest so collected in the manner hereinafter provided; and 20 to determine all rights to credit memoranda or refunds 21 arising on account of the erroneous payment of tax, penalty 22 or interest hereunder. In the administration of, and 23 compliance with, this paragraph, the Department and persons 24 who are subject to this paragraph shall have the same rights, 25 remedies, privileges, immunities, powers and duties, and be 26 subject to the same conditions, restrictions, limitations, 27 penalties, exclusions, exemptions and definitions of terms 28 and employ the same modes of procedure, as are prescribed in 29 Sections 2 (except the definition of "retailer maintaining a 30 place of business in this State"), 3 through 3-80 (except 31 provisions pertaining to the State rate of tax, and except 32 provisions concerning collection or refunding of the tax by 33 retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions 34 pertaining to claims by retailers and except the last SB1310 Engrossed -133- LRB9110257SMdv 1 paragraph concerning refunds), 20, 21 and 22 of the Use Tax 2 Act and Section 3-7 of the Uniform Penalty and Interest Act, 3 that are not inconsistent with this paragraph, as fully as if 4 those provisions were set forth herein. 5 If the Board has not imposed a tax under this subsection 6 on the use of motor fuel or gasohol before the effective date 7 of this amendatory Act of the 91st General Assembly, then the 8 Board shall not impose such a tax on or after that date. If 9 the Board has imposed a tax under this subsection on the use 10 of motor fuel or gasohol before the effective date of this 11 amendatory Act of the 91st General Assembly, then the Board 12 shall not increase the rate of the tax on or after that date. 13 If, as a result of the provisions of this amendatory Act of 14 the 91st General Assembly, the rate of tax imposed on the 15 sale of motor fuel and gasohol by the Retailers' Occupation 16 Tax Act returns to 6.25%, then the prohibition against 17 imposing a tax on the sale of motor fuel and gasohol and the 18 prohibition against an increase in the rate of any tax 19 already imposed on the sale of motor fuel and gasohol are no 20 longer in effect. 21 Whenever the Department determines that a refund should 22 be made under this paragraph to a claimant instead of issuing 23 a credit memorandum, the Department shall notify the State 24 Comptroller, who shall cause the order to be drawn for the 25 amount specified, and to the person named, in the 26 notification from the Department. The refund shall be paid by 27 the State Treasurer out of the Metro East Mass Transit 28 District tax fund established under paragraph (g) of this 29 Section. 30 (d-5) The county board of any county participating in 31 the Metro East Mass Transit District may authorize, by 32 ordinance, a referendum on the question of whether the tax 33 rates for the Metro East Mass Transit District Retailers' 34 Occupation Tax, the Metro East Mass Transit District Service SB1310 Engrossed -134- LRB9110257SMdv 1 Occupation Tax, and the Metro East Mass Transit District Use 2 Tax for the District should be increased from 0.25% to 0.75%. 3 Upon adopting the ordinance, the county board shall certify 4 the proposition to the proper election officials who shall 5 submit the proposition to the voters of the District at the 6 next election, in accordance with the general election law. 7 The proposition shall be in substantially the following 8 form: 9 Shall the tax rates for the Metro East Mass Transit 10 District Retailers' Occupation Tax, the Metro East Mass 11 Transit District Service Occupation Tax, and the Metro 12 East Mass Transit District Use Tax be increased from 13 0.25% to 0.75%? 14 The votes shall be recorded as "YES" or "NO". If a 15 majority of all votes cast on the proposition are for the 16 increase in the tax rates, the Metro East Mass Transit 17 District shall begin imposing the increased rates in the 18 District, and the Department of Revenue shall begin 19 collecting the increased amounts, as provided under this 20 Section. An ordinance imposing or discontinuing a tax 21 hereunder or effecting a change in the rate thereof shall be 22 adopted and a certified copy thereof filed with the 23 Department on or before the first day of October, whereupon 24 the Department shall proceed to administer and enforce this 25 Section as of the first day of January next following the 26 adoption and filing. 27 If the voters have approved a referendum under this 28 subsection, before November 1, 1994, to increase the tax rate 29 under this subsection, the Metro East Mass Transit District 30 Board of Trustees may adopt by a majority vote an ordinance 31 at any time before January 1, 1995 that excludes from the 32 rate increase tangible personal property that is titled or 33 registered with an agency of this State's government. The 34 ordinance excluding titled or registered tangible personal SB1310 Engrossed -135- LRB9110257SMdv 1 property from the rate increase must be filed with the 2 Department at least 15 days before its effective date. At any 3 time after adopting an ordinance excluding from the rate 4 increase tangible personal property that is titled or 5 registered with an agency of this State's government, the 6 Metro East Mass Transit District Board of Trustees may adopt 7 an ordinance applying the rate increase to that tangible 8 personal property. The ordinance shall be adopted, and a 9 certified copy of that ordinance shall be filed with the 10 Department, on or before October 1, whereupon the Department 11 shall proceed to administer and enforce the rate increase 12 against tangible personal property titled or registered with 13 an agency of this State's government as of the following 14 January 1. After December 31, 1995, any reimposed rate 15 increase in effect under this subsection shall no longer 16 apply to tangible personal property titled or registered with 17 an agency of this State's government. Beginning January 1, 18 1996, the Board of Trustees of any Metro East Mass Transit 19 District may never reimpose a previously excluded tax rate 20 increase on tangible personal property titled or registered 21 with an agency of this State's government. 22 (d-6) If the Board of Trustees of any Metro East Mass 23 Transit District has imposed a rate increase under subsection 24 (d-5) and filed an ordinance with the Department of Revenue 25 excluding titled property from the higher rate, then that 26 Board may, by ordinance adopted with the concurrence of 27 two-thirds of the then trustees, impose throughout the 28 District a fee. The fee on the excluded property shall not 29 exceed $20 per retail transaction or an amount equal to the 30 amount of tax excluded, whichever is less, on tangible 31 personal property that is titled or registered with an agency 32 of this State's government. The Board of Trustees of any 33 Metro East Mass Transit District shall have full power to 34 administer and enforce this subsection and to determine all SB1310 Engrossed -136- LRB9110257SMdv 1 rights to credit memoranda or refunds arising on account of 2 the erroneous payment of the fee hereunder. The Board shall 3 proceed to administer and enforce this subsection as of the 4 first day of the second month following the adoption of the 5 ordinance. 6 (d-7) If a fee has been imposed under subsection (d-6), 7 a fee shall also be imposed upon the privilege of using, in 8 the district, any item of tangible personal property that is 9 titled or registered with any agency of this State's 10 government, in an amount equal to the amount of the fee 11 imposed under subsection (d-6). The Board of Trustees of any 12 Metro East Mass Transit District shall have full power to 13 administer and enforce this subsection and to determine all 14 rights to credit memoranda or refunds arising on account of 15 the erroneous payment of the fee hereunder. The Board shall 16 proceed to administer and enforce this subsection 17 concurrently with the administration of the fee imposed under 18 subsection (d-6). 19 (d-8) No item of titled property shall be subject to 20 both the higher rate approved by referendum, as authorized 21 under subsection (d-5), and any fee imposed under subsection 22 (d-6) or (d-7). 23 (d-9) If fees have been imposed under subsections (d-6) 24 and (d-7), the Board shall forward a copy of the ordinance 25 adopting such fees, which shall include all zip codes in 26 whole or in part within the boundaries of the district, to 27 the Secretary of State within thirty days. By the 25th of 28 each month, the Secretary of State shall subsequently provide 29 the Board with a list of identifiable retail transactions 30 subject to the .25% rate occurring within the zip codes which 31 are in whole or in part within the boundaries of the district 32 and a list of title applications for addresses within the 33 boundaries of the district for the previous month. 34 (d-10) In the event that a retailer fails to pay SB1310 Engrossed -137- LRB9110257SMdv 1 applicable fees within 30 days of the date of the 2 transaction, a penalty shall be assessed at the rate of 25% 3 of the amount of fees. Interest on both late fees and 4 penalties shall be assessed at the rate of 1% per month. All 5 fees, penalties, and attorney fees shall constitute a lien on 6 the personal and real property of the retailer. The Board of 7 Trustees of any Metro East Transit District shall have full 8 power to administer and enforce this subsection. 9 (e) A certificate of registration issued by the State 10 Department of Revenue to a retailer under the Retailers' 11 Occupation Tax Act or under the Service Occupation Tax Act 12 shall permit the registrant to engage in a business that is 13 taxed under the tax imposed under paragraphs (b), (c) or (d) 14 of this Section and no additional registration shall be 15 required under the tax. A certificate issued under the Use 16 Tax Act or the Service Use Tax Act shall be applicable with 17 regard to any tax imposed under paragraph (c) of this 18 Section. 19 (f) The Board may impose a replacement vehicle tax of 20 $50 on any passenger car, as defined in Section 1-157 of the 21 Illinois Vehicle Code, purchased within the district area by 22 or on behalf of an insurance company to replace a passenger 23 car of an insured person in settlement of a total loss claim. 24 The tax imposed may not become effective before the first day 25 of the month following the passage of the ordinance imposing 26 the tax and receipt of a certified copy of the ordinance by 27 the Department of Revenue. The Department of Revenue shall 28 collect the tax for the district in accordance with Sections 29 3-2002 and 3-2003 of the Illinois Vehicle Code. 30 The Department shall immediately pay over to the State 31 Treasurer, ex officio, as trustee, all taxes collected 32 hereunder. On or before the 25th day of each calendar month, 33 the Department shall prepare and certify to the Comptroller 34 the disbursement of stated sums of money to named districts, SB1310 Engrossed -138- LRB9110257SMdv 1 the districts to be those from which retailers have paid 2 taxes or penalties hereunder to the Department during the 3 second preceding calendar month. The amount to be paid to 4 each district shall be the amount collected hereunder during 5 the second preceding calendar month by the Department, less 6 any amount determined by the Department to be necessary for 7 the payment of refunds. Within 10 days after receipt by the 8 Comptroller of the disbursement certification to the 9 districts, provided for in this Section to be given to the 10 Comptroller by the Department, the Comptroller shall cause 11 the orders to be drawn for the respective amounts in 12 accordance with the directions contained in the 13 certification. 14 (g) Any ordinance imposing or discontinuing any tax 15 under this Section shall be adopted and a certified copy 16 thereof filed with the Department on or before June 1, 17 whereupon the Department of Revenue shall proceed to 18 administer and enforce this Section on behalf of the Metro 19 East Mass Transit District as of September 1 next following 20 such adoption and filing. Beginning January 1, 1992, an 21 ordinance or resolution imposing or discontinuing the tax 22 hereunder shall be adopted and a certified copy thereof filed 23 with the Department on or before the first day of July, 24 whereupon the Department shall proceed to administer and 25 enforce this Section as of the first day of October next 26 following such adoption and filing. Beginning January 1, 27 1993, except as provided in subsection (d-5) of this Section, 28 an ordinance or resolution imposing or discontinuing the tax 29 hereunder shall be adopted and a certified copy thereof filed 30 with the Department on or before the first day of October, 31 whereupon the Department shall proceed to administer and 32 enforce this Section as of the first day of January next 33 following such adoption and filing. 34 (h) The State Department of Revenue shall, upon SB1310 Engrossed -139- LRB9110257SMdv 1 collecting any taxes as provided in this Section, pay the 2 taxes over to the State Treasurer as trustee for the 3 District. The taxes shall be held in a trust fund outside the 4 State Treasury. On or before the 25th day of each calendar 5 month, the State Department of Revenue shall prepare and 6 certify to the Comptroller of the State of Illinois the 7 amount to be paid to the District, which shall be the then 8 balance in the fund, less any amount determined by the 9 Department to be necessary for the payment of refunds. Within 10 10 days after receipt by the Comptroller of the certification 11 of the amount to be paid to the District, the Comptroller 12 shall cause an order to be drawn for payment for the amount 13 in accordance with the direction in the certification. 14 (Source: P.A. 91-51, eff. 6-30-99.) 15 Section 45. The Regional Transportation Authority Act is 16 amended by changing Section 4.03 as follows: 17 (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03) 18 Sec. 4.03. Taxes. 19 (a) In order to carry out any of the powers or purposes 20 of the Authority, the Board may by ordinance adopted with the 21 concurrence of 9 of the then Directors, impose throughout the 22 metropolitan region any or all of the taxes provided in this 23 Section. Except as otherwise provided in this Act, taxes 24 imposed under this Section and civil penalties imposed 25 incident thereto shall be collected and enforced by the State 26 Department of Revenue. The Department shall have the power to 27 administer and enforce the taxes and to determine all rights 28 for refunds for erroneous payments of the taxes. 29 (b) The Board may impose a public transportation tax 30 upon all persons engaged in the metropolitan region in the 31 business of selling at retail motor fuel for operation of 32 motor vehicles upon public highways. The tax shall be at a SB1310 Engrossed -140- LRB9110257SMdv 1 rate not to exceed 5% of the gross receipts from the sales of 2 motor fuel in the course of the business. As used in this 3 Act, the term "motor fuel" shall have the same meaning as in 4 the Motor Fuel Tax Act. The Board may provide for details of 5 the tax. The provisions of any tax shall conform, as closely 6 as may be practicable, to the provisions of the Municipal 7 Retailers Occupation Tax Act, including without limitation, 8 conformity to penalties with respect to the tax imposed and 9 as to the powers of the State Department of Revenue to 10 promulgate and enforce rules and regulations relating to the 11 administration and enforcement of the provisions of the tax 12 imposed, except that reference in the Act to any municipality 13 shall refer to the Authority and the tax shall be imposed 14 only with regard to receipts from sales of motor fuel in the 15 metropolitan region, at rates as limited by this Section. 16 If the Board has not imposed a tax under this subsection 17 before the effective date of this amendatory Act of the 91st 18 General Assembly, then the Board shall not impose such a tax 19 on or after that date. If the Board has imposed a tax under 20 this subsection before the effective date of this amendatory 21 Act of 91st General Assembly, then the Board shall not 22 increase the rate of the tax on or after that date. If, as a 23 result of the provisions of this amendatory Act of the 91st 24 General Assembly, the rate of tax imposed on the sale of 25 motor fuel and gasohol by the Retailers' Occupation Tax Act 26 returns to 6.25%, then the prohibition against imposing a tax 27 on the sale of motor fuel and gasohol and the prohibition 28 against an increase in the rate of any tax already imposed on 29 the sale of motor fuel and gasohol are no longer in effect. 30 (c) In connection with the tax imposed under paragraph 31 (b) of this Section the Board may impose a tax upon the 32 privilege of using in the metropolitan region motor fuel for 33 the operation of a motor vehicle upon public highways, the 34 tax to be at a rate not in excess of the rate of tax imposed SB1310 Engrossed -141- LRB9110257SMdv 1 under paragraph (b) of this Section. The Board may provide 2 for details of the tax. 3 If the Board has not imposed a tax under this subsection 4 before the effective date of this amendatory Act of the 91st 5 General Assembly, then the Board shall not impose such a tax 6 on or after that date. If the Board has imposed a tax under 7 this subsection before the effective date of this amendatory 8 Act of 91st General Assembly, then the Board shall not 9 increase the rate of the tax on or after that date. If, as a 10 result of the provisions of this amendatory Act of the 91st 11 General Assembly, the rate of tax imposed on the sale of 12 motor fuel and gasohol by the Retailers' Occupation Tax Act 13 returns to 6.25%, then the prohibition against imposing a tax 14 on the sale of motor fuel and gasohol and the prohibition 15 against an increase in the rate of any tax already imposed on 16 the sale of motor fuel and gasohol are no longer in effect. 17 (d) The Board may impose a motor vehicle parking tax 18 upon the privilege of parking motor vehicles at off-street 19 parking facilities in the metropolitan region at which a fee 20 is charged, and may provide for reasonable classifications in 21 and exemptions to the tax, for administration and enforcement 22 thereof and for civil penalties and refunds thereunder and 23 may provide criminal penalties thereunder, the maximum 24 penalties not to exceed the maximum criminal penalties 25 provided in the Retailers' Occupation Tax Act. The Authority 26 may collect and enforce the tax itself or by contract with 27 any unit of local government. The State Department of 28 Revenue shall have no responsibility for the collection and 29 enforcement unless the Department agrees with the Authority 30 to undertake the collection and enforcement. As used in this 31 paragraph, the term "parking facility" means a parking area 32 or structure having parking spaces for more than 2 vehicles 33 at which motor vehicles are permitted to park in return for 34 an hourly, daily, or other periodic fee, whether publicly or SB1310 Engrossed -142- LRB9110257SMdv 1 privately owned, but does not include parking spaces on a 2 public street, the use of which is regulated by parking 3 meters. 4 (e) The Board may impose a Regional Transportation 5 Authority Retailers' Occupation Tax upon all persons engaged 6 in the business of selling tangible personal property at 7 retail in the metropolitan region. In Cook County the tax 8 rate shall be 1% of the gross receipts from sales of food for 9 human consumption that is to be consumed off the premises 10 where it is sold (other than alcoholic beverages, soft drinks 11 and food that has been prepared for immediate consumption) 12 and prescription and nonprescription medicines, drugs, 13 medical appliances and insulin, urine testing materials, 14 syringes and needles used by diabetics, and 3/4% of the gross 15 receipts from other taxable sales made in the course of that 16 business. In DuPage, Kane, Lake, McHenry, and Will Counties, 17 the tax rate shall be 1/4% of the gross receipts from all 18 taxable sales made in the course of that business. The tax 19 imposed under this Section and all civil penalties that may 20 be assessed as an incident thereof shall be collected and 21 enforced by the State Department of Revenue. The Department 22 shall have full power to administer and enforce this Section; 23 to collect all taxes and penalties so collected in the manner 24 hereinafter provided; and to determine all rights to credit 25 memoranda arising on account of the erroneous payment of tax 26 or penalty hereunder. In the administration of, and 27 compliance with this Section, the Department and persons who 28 are subject to this Section shall have the same rights, 29 remedies, privileges, immunities, powers and duties, and be 30 subject to the same conditions, restrictions, limitations, 31 penalties, exclusions, exemptions and definitions of terms, 32 and employ the same modes of procedure, as are prescribed in 33 Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 34 (in respect to all provisions therein other than the State SB1310 Engrossed -143- LRB9110257SMdv 1 rate of tax), 2c, 3 (except as to the disposition of taxes 2 and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 3 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 4 of the Retailers' Occupation Tax Act and Section 3-7 of the 5 Uniform Penalty and Interest Act, as fully as if those 6 provisions were set forth herein. 7 If the Board has not imposed a tax under this subsection 8 on the sale of motor fuel or gasohol before the effective 9 date of this amendatory Act of the 91st General Assembly, 10 then the Board shall not impose such a tax on or after that 11 date. If the Board has imposed a tax under this subsection 12 on the sale of motor fuel or gasohol before the effective 13 date of this amendatory Act of the 91st General Assembly, 14 then the Board shall not increase the rate of the tax on or 15 after that date. If, as a result of the provisions of this 16 amendatory Act of the 91st General Assembly, the rate of tax 17 imposed on the sale of motor fuel and gasohol by the 18 Retailers' Occupation Tax Act returns to 6.25%, then the 19 prohibition against imposing a tax on the sale of motor fuel 20 and gasohol and the prohibition against an increase in the 21 rate of any tax already imposed on the sale of motor fuel and 22 gasohol are no longer in effect. 23 Persons subject to any tax imposed under the authority 24 granted in this Section may reimburse themselves for their 25 seller's tax liability hereunder by separately stating the 26 tax as an additional charge, which charge may be stated in 27 combination in a single amount with State taxes that sellers 28 are required to collect under the Use Tax Act, under any 29 bracket schedules the Department may prescribe. 30 Whenever the Department determines that a refund should 31 be made under this Section to a claimant instead of issuing a 32 credit memorandum, the Department shall notify the State 33 Comptroller, who shall cause the warrant to be drawn for the 34 amount specified, and to the person named, in the SB1310 Engrossed -144- LRB9110257SMdv 1 notification from the Department. The refund shall be paid 2 by the State Treasurer out of the Regional Transportation 3 Authority tax fund established under paragraph (n) of this 4 Section. 5 If a tax is imposed under this subsection (e), a tax 6 shall also be imposed under subsections (f) and (g) of this 7 Section. 8 For the purpose of determining whether a tax authorized 9 under this Section is applicable, a retail sale by a producer 10 of coal or other mineral mined in Illinois, is a sale at 11 retail at the place where the coal or other mineral mined in 12 Illinois is extracted from the earth. This paragraph does not 13 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 18 the Regional Transportation Authority to impose a tax upon 19 the privilege of engaging in any business that under the 20 Constitution of the United States may not be made the subject 21 of taxation by this State. 22 (f) If a tax has been imposed under paragraph (e), a tax 23 shall also be imposed upon all persons engaged, in the 24 metropolitan region in the business of making sales of 25 service, who as an incident to making the sales of service, 26 transfer tangible personal property within the metropolitan 27 region, either in the form of tangible personal property or 28 in the form of real estate as an incident to a sale of 29 service. In Cook County, the tax rate shall be: (1) 1% of 30 the serviceman's cost price of food prepared for immediate 31 consumption and transferred incident to a sale of service 32 subject to the service occupation tax by an entity licensed 33 under the Hospital Licensing Act or the Nursing Home Care Act 34 that is located in the metropolitan region; (2) 1% of the SB1310 Engrossed -145- LRB9110257SMdv 1 selling price of food for human consumption that is to be 2 consumed off the premises where it is sold (other than 3 alcoholic beverages, soft drinks and food that has been 4 prepared for immediate consumption) and prescription and 5 nonprescription medicines, drugs, medical appliances and 6 insulin, urine testing materials, syringes and needles used 7 by diabetics; and (3) 3/4% of the selling price from other 8 taxable sales of tangible personal property transferred. In 9 DuPage, Kane, Lake, McHenry and Will Counties the rate shall 10 be 1/4% of the selling price of all tangible personal 11 property transferred. 12 The tax imposed under this paragraph and all civil 13 penalties that may be assessed as an incident thereof shall 14 be collected and enforced by the State Department of Revenue. 15 The Department shall have full power to administer and 16 enforce this paragraph; to collect all taxes and penalties 17 due hereunder; to dispose of taxes and penalties collected in 18 the manner hereinafter provided; and to determine all rights 19 to credit memoranda arising on account of the erroneous 20 payment of tax or penalty hereunder. In the administration 21 of and compliance with this paragraph, the Department and 22 persons who are subject to this paragraph shall have the same 23 rights, remedies, privileges, immunities, powers and duties, 24 and be subject to the same conditions, restrictions, 25 limitations, penalties, exclusions, exemptions and 26 definitions of terms, and employ the same modes of procedure, 27 as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in 28 respect to all provisions therein other than the State rate 29 of tax), 4 (except that the reference to the State shall be 30 to the Authority), 5, 7, 8 (except that the jurisdiction to 31 which the tax shall be a debt to the extent indicated in that 32 Section 8 shall be the Authority), 9 (except as to the 33 disposition of taxes and penalties collected, and except that 34 the returned merchandise credit for this tax may not be taken SB1310 Engrossed -146- LRB9110257SMdv 1 against any State tax), 10, 11, 12 (except the reference 2 therein to Section 2b of the Retailers' Occupation Tax Act), 3 13 (except that any reference to the State shall mean the 4 Authority), the first paragraph of Section 15, 16, 17, 18, 19 5 and 20 of the Service Occupation Tax Act and Section 3-7 of 6 the Uniform Penalty and Interest Act, as fully as if those 7 provisions were set forth herein. 8 If the Board has not imposed a tax under this subsection 9 on the selling price of motor fuel or gasohol before the 10 effective date of this amendatory Act of the 91st General 11 Assembly, then the Board shall not impose such a tax on or 12 after that date. If the Board has imposed a tax under this 13 subsection on the selling price of motor fuel or gasohol 14 before the effective date of this amendatory Act of the 91st 15 General Assembly, then the Board shall not increase the rate 16 of the tax on or after that date. If, as a result of the 17 provisions of this amendatory Act of the 91st General 18 Assembly, the rate of tax imposed on the sale of motor fuel 19 and gasohol by the Retailers' Occupation Tax Act returns to 20 6.25%, then the prohibition against imposing a tax on the 21 sale of motor fuel and gasohol and the prohibition against an 22 increase in the rate of any tax already imposed on the sale 23 of motor fuel and gasohol are no longer in effect. 24 Persons subject to any tax imposed under the authority 25 granted in this paragraph may reimburse themselves for their 26 serviceman's tax liability hereunder by separately stating 27 the tax as an additional charge, that charge may be stated in 28 combination in a single amount with State tax that servicemen 29 are authorized to collect under the Service Use Tax Act, 30 under any bracket schedules the Department may prescribe. 31 Whenever the Department determines that a refund should 32 be made under this paragraph to a claimant instead of issuing 33 a credit memorandum, the Department shall notify the State 34 Comptroller, who shall cause the warrant to be drawn for the SB1310 Engrossed -147- LRB9110257SMdv 1 amount specified, and to the person named in the notification 2 from the Department. The refund shall be paid by the State 3 Treasurer out of the Regional Transportation Authority tax 4 fund established under paragraph (n) of this Section. 5 Nothing in this paragraph shall be construed to authorize 6 the Authority to impose a tax upon the privilege of engaging 7 in any business that under the Constitution of the United 8 States may not be made the subject of taxation by the State. 9 (g) If a tax has been imposed under paragraph (e), a tax 10 shall also be imposed upon the privilege of using in the 11 metropolitan region, any item of tangible personal property 12 that is purchased outside the metropolitan region at retail 13 from a retailer, and that is titled or registered with an 14 agency of this State's government. In Cook County the tax 15 rate shall be 3/4% of the selling price of the tangible 16 personal property, as "selling price" is defined in the Use 17 Tax Act. In DuPage, Kane, Lake, McHenry and Will counties 18 the tax rate shall be 1/4% of the selling price of the 19 tangible personal property, as "selling price" is defined in 20 the Use Tax Act. The tax shall be collected from persons 21 whose Illinois address for titling or registration purposes 22 is given as being in the metropolitan region. The tax shall 23 be collected by the Department of Revenue for the Regional 24 Transportation Authority. The tax must be paid to the State, 25 or an exemption determination must be obtained from the 26 Department of Revenue, before the title or certificate of 27 registration for the property may be issued. The tax or proof 28 of exemption may be transmitted to the Department by way of 29 the State agency with which, or the State officer with whom, 30 the tangible personal property must be titled or registered 31 if the Department and the State agency or State officer 32 determine that this procedure will expedite the processing of 33 applications for title or registration. 34 The Department shall have full power to administer and SB1310 Engrossed -148- LRB9110257SMdv 1 enforce this paragraph; to collect all taxes, penalties and 2 interest due hereunder; to dispose of taxes, penalties and 3 interest collected in the manner hereinafter provided; and to 4 determine all rights to credit memoranda or refunds arising 5 on account of the erroneous payment of tax, penalty or 6 interest hereunder. In the administration of and compliance 7 with this paragraph, the Department and persons who are 8 subject to this paragraph shall have the same rights, 9 remedies, privileges, immunities, powers and duties, and be 10 subject to the same conditions, restrictions, limitations, 11 penalties, exclusions, exemptions and definitions of terms 12 and employ the same modes of procedure, as are prescribed in 13 Sections 2 (except the definition of "retailer maintaining a 14 place of business in this State"), 3 through 3-80 (except 15 provisions pertaining to the State rate of tax, and except 16 provisions concerning collection or refunding of the tax by 17 retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions 18 pertaining to claims by retailers and except the last 19 paragraph concerning refunds), 20, 21 and 22 of the Use Tax 20 Act, and are not inconsistent with this paragraph, as fully 21 as if those provisions were set forth herein. 22 If the Board has not imposed a tax under this subsection 23 on the use of motor fuel or gasohol before the effective date 24 of this amendatory Act of the 91st General Assembly, then the 25 Board shall not impose such a tax on or after that date. If 26 the Board has imposed a tax under this subsection on the use 27 of motor fuel or gasohol before the effective date of this 28 amendatory Act of the 91st General Assembly, then the Board 29 shall not increase the rate of the tax on or after that date. 30 If, as a result of the provisions of this amendatory Act of 31 the 91st General Assembly, the rate of tax imposed on the 32 sale of motor fuel and gasohol by the Retailers' Occupation 33 Tax Act returns to 6.25%, then the prohibition against 34 imposing a tax on the sale of motor fuel and gasohol and the SB1310 Engrossed -149- LRB9110257SMdv 1 prohibition against an increase in the rate of any tax 2 already imposed on the sale of motor fuel and gasohol are no 3 longer in effect. 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 order to be drawn for the 8 amount specified, and to the person named in the notification 9 from the Department. The refund shall be paid by the State 10 Treasurer out of the Regional Transportation Authority tax 11 fund established under paragraph (n) of this Section. 12 (h) The Authority may impose a replacement vehicle tax 13 of $50 on any passenger car as defined in Section 1-157 of 14 the Illinois Vehicle Code purchased within the metropolitan 15 region by or on behalf of an insurance company to replace a 16 passenger car of an insured person in settlement of a total 17 loss claim. The tax imposed may not become effective before 18 the first day of the month following the passage of the 19 ordinance imposing the tax and receipt of a certified copy of 20 the ordinance by the Department of Revenue. The Department 21 of Revenue shall collect the tax for the Authority in 22 accordance with Sections 3-2002 and 3-2003 of the Illinois 23 Vehicle Code. 24 The Department shall immediately pay over to the State 25 Treasurer, ex officio, as trustee, all taxes collected 26 hereunder. On or before the 25th day of each calendar month, 27 the Department shall prepare and certify to the Comptroller 28 the disbursement of stated sums of money to the Authority. 29 The amount to be paid to the Authority shall be the amount 30 collected hereunder during the second preceding calendar 31 month by the Department, less any amount determined by the 32 Department to be necessary for the payment of refunds. 33 Within 10 days after receipt by the Comptroller of the 34 disbursement certification to the Authority provided for in SB1310 Engrossed -150- LRB9110257SMdv 1 this Section to be given to the Comptroller by the 2 Department, the Comptroller shall cause the orders to be 3 drawn for that amount in accordance with the directions 4 contained in the certification. 5 (i) The Board may not impose any other taxes except as 6 it may from time to time be authorized by law to impose. 7 (j) A certificate of registration issued by the State 8 Department of Revenue to a retailer under the Retailers' 9 Occupation Tax Act or under the Service Occupation Tax Act 10 shall permit the registrant to engage in a business that is 11 taxed under the tax imposed under paragraphs (b), (e), (f) or 12 (g) of this Section and no additional registration shall be 13 required under the tax. A certificate issued under the Use 14 Tax Act or the Service Use Tax Act shall be applicable with 15 regard to any tax imposed under paragraph (c) of this 16 Section. 17 (k) The provisions of any tax imposed under paragraph 18 (c) of this Section shall conform as closely as may be 19 practicable to the provisions of the Use Tax Act, including 20 without limitation conformity as to penalties with respect to 21 the tax imposed and as to the powers of the State Department 22 of Revenue to promulgate and enforce rules and regulations 23 relating to the administration and enforcement of the 24 provisions of the tax imposed. The taxes shall be imposed 25 only on use within the metropolitan region and at rates as 26 provided in the paragraph. 27 (l) The Board in imposing any tax as provided in 28 paragraphs (b) and (c) of this Section, shall, after seeking 29 the advice of the State Department of Revenue, provide means 30 for retailers, users or purchasers of motor fuel for purposes 31 other than those with regard to which the taxes may be 32 imposed as provided in those paragraphs to receive refunds of 33 taxes improperly paid, which provisions may be at variance 34 with the refund provisions as applicable under the Municipal SB1310 Engrossed -151- LRB9110257SMdv 1 Retailers Occupation Tax Act. The State Department of 2 Revenue may provide for certificates of registration for 3 users or purchasers of motor fuel for purposes other than 4 those with regard to which taxes may be imposed as provided 5 in paragraphs (b) and (c) of this Section to facilitate the 6 reporting and nontaxability of the exempt sales or uses. 7 (m) Any ordinance imposing or discontinuing any tax 8 under this Section shall be adopted and a certified copy 9 thereof filed with the Department on or before June 1, 10 whereupon the Department of Revenue shall proceed to 11 administer and enforce this Section on behalf of the Regional 12 Transportation Authority as of September 1 next following 13 such adoption and filing. Beginning January 1, 1992, an 14 ordinance or resolution imposing or discontinuing the tax 15 hereunder shall be adopted and a certified copy thereof filed 16 with the Department on or before the first day of July, 17 whereupon the Department shall proceed to administer and 18 enforce this Section as of the first day of October next 19 following such adoption and filing. Beginning January 1, 20 1993, an ordinance or resolution imposing or discontinuing 21 the tax hereunder shall be adopted and a certified copy 22 thereof filed with the Department on or before the first day 23 of October, whereupon the Department shall proceed to 24 administer and enforce this Section as of the first day of 25 January next following such adoption and filing. 26 (n) The State Department of Revenue shall, upon 27 collecting any taxes as provided in this Section, pay the 28 taxes over to the State Treasurer as trustee for the 29 Authority. The taxes shall be held in a trust fund outside 30 the State Treasury. On or before the 25th day of each 31 calendar month, the State Department of Revenue shall prepare 32 and certify to the Comptroller of the State of Illinois the 33 amount to be paid to the Authority, which shall be the then 34 balance in the fund, less any amount determined by the SB1310 Engrossed -152- LRB9110257SMdv 1 Department to be necessary for the payment of refunds. The 2 State Department of Revenue shall also certify to the 3 Authority the amount of taxes collected in each County other 4 than Cook County in the metropolitan region less the amount 5 necessary for the payment of refunds to taxpayers in the 6 County. With regard to the County of Cook, the certification 7 shall specify the amount of taxes collected within the City 8 of Chicago less the amount necessary for the payment of 9 refunds to taxpayers in the City of Chicago and the amount 10 collected in that portion of Cook County outside of Chicago 11 less the amount necessary for the payment of refunds to 12 taxpayers in that portion of Cook County outside of Chicago. 13 Within 10 days after receipt by the Comptroller of the 14 certification of the amount to be paid to the Authority, the 15 Comptroller shall cause an order to be drawn for the payment 16 for the amount in accordance with the direction in the 17 certification. 18 In addition to the disbursement required by the preceding 19 paragraph, an allocation shall be made in July 1991 and each 20 year thereafter to the Regional Transportation Authority. 21 The allocation shall be made in an amount equal to the 22 average monthly distribution during the preceding calendar 23 year (excluding the 2 months of lowest receipts) and the 24 allocation shall include the amount of average monthly 25 distribution from the Regional Transportation Authority 26 Occupation and Use Tax Replacement Fund. The distribution 27 made in July 1992 and each year thereafter under this 28 paragraph and the preceding paragraph shall be reduced by the 29 amount allocated and disbursed under this paragraph in the 30 preceding calendar year. The Department of Revenue shall 31 prepare and certify to the Comptroller for disbursement the 32 allocations made in accordance with this paragraph. 33 (o) Failure to adopt a budget ordinance or otherwise to 34 comply with Section 4.01 of this Act or to adopt a Five-year SB1310 Engrossed -153- LRB9110257SMdv 1 Program or otherwise to comply with paragraph (b) of Section 2 2.01 of this Act shall not affect the validity of any tax 3 imposed by the Authority otherwise in conformity with law. 4 (p) At no time shall a public transportation tax or 5 motor vehicle parking tax authorized under paragraphs (b), 6 (c) and (d) of this Section be in effect at the same time as 7 any retailers' occupation, use or service occupation tax 8 authorized under paragraphs (e), (f) and (g) of this Section 9 is in effect. 10 Any taxes imposed under the authority provided in 11 paragraphs (b), (c) and (d) shall remain in effect only until 12 the time as any tax authorized by paragraphs (e), (f) or (g) 13 of this Section are imposed and becomes effective. Once any 14 tax authorized by paragraphs (e), (f) or (g) is imposed the 15 Board may not reimpose taxes as authorized in paragraphs (b), 16 (c) and (d) of the Section unless any tax authorized by 17 paragraphs (e), (f) or (g) of this Section becomes 18 ineffective by means other than an ordinance of the Board. 19 (q) Any existing rights, remedies and obligations 20 (including enforcement by the Regional Transportation 21 Authority) arising under any tax imposed under paragraphs 22 (b), (c) or (d) of this Section shall not be affected by the 23 imposition of a tax under paragraphs (e), (f) or (g) of this 24 Section. 25 (Source: P.A. 91-51, eff. 6-30-99.) 26 Section 50. The Water Commission Act of 1985 is amended 27 by changing Section 4 as follows: 28 (70 ILCS 3720/4) (from Ch. 111 2/3, par. 254) 29 Sec. 4. Taxes. 30 (a) The board of commissioners of any county water 31 commission may, by ordinance, impose throughout the territory 32 of the commission any or all of the taxes provided in this SB1310 Engrossed -154- LRB9110257SMdv 1 Section for its corporate purposes. However, no county water 2 commission may impose any such tax unless the commission 3 certifies the proposition of imposing the tax to the proper 4 election officials, who shall submit the proposition to the 5 voters residing in the territory at an election in accordance 6 with the general election law, and the proposition has been 7 approved by a majority of those voting on the proposition. 8 The proposition shall be in the form provided in Section 9 5 or shall be substantially in the following form: 10 ------------------------------------------------------------- 11 Shall the (insert corporate 12 name of county water commission) YES 13 impose (state type of tax or ------------------------ 14 taxes to be imposed) at the NO 15 rate of 1/4%? 16 ------------------------------------------------------------- 17 Taxes imposed under this Section and civil penalties 18 imposed incident thereto shall be collected and enforced by 19 the State Department of Revenue. The Department shall have 20 the power to administer and enforce the taxes and to 21 determine all rights for refunds for erroneous payments of 22 the taxes. 23 (b) The board of commissioners may impose a County Water 24 Commission Retailers' Occupation Tax upon all persons engaged 25 in the business of selling tangible personal property at 26 retail in the territory of the commission at a rate of 1/4% 27 of the gross receipts from the sales made in the course of 28 such business within the territory. The tax imposed under 29 this paragraph and all civil penalties that may be assessed 30 as an incident thereof shall be collected and enforced by the 31 State Department of Revenue. The Department shall have full 32 power to administer and enforce this paragraph; to collect 33 all taxes and penalties due hereunder; to dispose of taxes 34 and penalties so collected in the manner hereinafter SB1310 Engrossed -155- LRB9110257SMdv 1 provided; and to determine all rights to credit memoranda 2 arising on account of the erroneous payment of tax or penalty 3 hereunder. In the administration of, and compliance with, 4 this paragraph, the Department and persons who are subject to 5 this paragraph shall have the same rights, remedies, 6 privileges, immunities, powers and duties, and be subject to 7 the same conditions, restrictions, limitations, penalties, 8 exclusions, exemptions and definitions of terms, and employ 9 the same modes of procedure, as are prescribed in Sections 1, 10 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect 11 to all provisions therein other than the State rate of tax 12 except that food for human consumption that is to be consumed 13 off the premises where it is sold (other than alcoholic 14 beverages, soft drinks, and food that has been prepared for 15 immediate consumption) and prescription and nonprescription 16 medicine, drugs, medical appliances and insulin, urine 17 testing materials, syringes, and needles used by diabetics, 18 for human use, shall not be subject to tax hereunder), 2c, 3 19 (except as to the disposition of taxes and penalties 20 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 21 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the 22 Retailers' Occupation Tax Act and Section 3-7 of the Uniform 23 Penalty and Interest Act, as fully as if those provisions 24 were set forth herein. 25 If the board of commissioners has not imposed a tax under 26 this subsection on the sale of motor fuel or gasohol before 27 the effective date of this amendatory Act of the 91st General 28 Assembly, then the board shall not impose such a tax on or 29 after that date. If the board of commissioners has imposed a 30 tax under this subsection on the sale of motor fuel or 31 gasohol before the effective date of this amendatory Act of 32 the 91st General Assembly, then the board shall not increase 33 the rate of the tax on or after that date. If, as a result of 34 the provisions of this amendatory Act of the 91st General SB1310 Engrossed -156- LRB9110257SMdv 1 Assembly, the rate of tax imposed on the sale of motor fuel 2 and gasohol by the Retailers' Occupation Tax Act returns to 3 6.25%, then the prohibition against imposing a tax on the 4 sale of motor fuel and gasohol and the prohibition against an 5 increase in the rate of any tax already imposed on the sale 6 of motor fuel and gasohol are no longer in effect. 7 Persons subject to any tax imposed under the authority 8 granted in this paragraph may reimburse themselves for their 9 seller's tax liability hereunder by separately stating the 10 tax as an additional charge, which charge may be stated in 11 combination, in a single amount, with State taxes that 12 sellers are required to collect under the Use Tax Act and 13 under subsection (e) of Section 4.03 of the Regional 14 Transportation Authority Act, in accordance with such bracket 15 schedules as 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 21 notification from the Department. The refund shall be paid 22 by the State Treasurer out of a county water commission tax 23 fund established under paragraph (g) of this Section. 24 For the purpose of determining whether a tax authorized 25 under this paragraph is applicable, a retail sale by a 26 producer of coal or other mineral mined in Illinois is a sale 27 at retail at the place where the coal or other mineral mined 28 in Illinois is extracted from the earth. This paragraph does 29 not apply to coal or other mineral when it is delivered or 30 shipped by the seller to the purchaser at a point outside 31 Illinois so that the sale is exempt under the Federal 32 Constitution as a sale in interstate or foreign commerce. 33 If a tax is imposed under this subsection (b) a tax shall 34 also be imposed under subsections (c) and (d) of this SB1310 Engrossed -157- LRB9110257SMdv 1 Section. 2 Nothing in this paragraph shall be construed to authorize 3 a county water commission to impose a tax upon the privilege 4 of engaging in any business which under the Constitution of 5 the United States may not be made the subject of taxation by 6 this State. 7 (c) If a tax has been imposed under subsection (b), a 8 tax shall also be imposed upon all persons engaged, in the 9 territory of the commission, in the business of making sales 10 of service, who, as an incident to making the sales of 11 service, transfer tangible personal property within the 12 territory. The tax rate shall be 1/4% of the selling price of 13 tangible personal property so transferred within the 14 territory. The tax imposed under this paragraph and all 15 civil penalties that may be assessed as an incident thereof 16 shall be collected and enforced by the State Department of 17 Revenue. The Department shall have full power to administer 18 and enforce this paragraph; to collect all taxes and 19 penalties due hereunder; to dispose of taxes and penalties so 20 collected in the manner hereinafter provided; and to 21 determine all rights to credit memoranda arising on account 22 of the erroneous payment of tax or penalty hereunder. In the 23 administration of, and compliance with, this paragraph, the 24 Department and persons who are subject to this paragraph 25 shall have the same rights, remedies, privileges, immunities, 26 powers and duties, and be subject to the same conditions, 27 restrictions, limitations, penalties, exclusions, exemptions 28 and definitions of terms, and employ the same modes of 29 procedure, as are prescribed in Sections 1a-1, 2 (except that 30 the reference to State in the definition of supplier 31 maintaining a place of business in this State shall mean the 32 territory of the commission), 2a, 3 through 3-50 (in respect 33 to all provisions therein other than the State rate of tax 34 except that food for human consumption that is to be consumed SB1310 Engrossed -158- LRB9110257SMdv 1 off the premises where it is sold (other than alcoholic 2 beverages, soft drinks, and food that has been prepared for 3 immediate consumption) and prescription and nonprescription 4 medicines, drugs, medical appliances and insulin, urine 5 testing materials, syringes, and needles used by diabetics, 6 for human use, shall not be subject to tax hereunder), 4 7 (except that the reference to the State shall be to the 8 territory of the commission), 5, 7, 8 (except that the 9 jurisdiction to which the tax shall be a debt to the extent 10 indicated in that Section 8 shall be the commission), 9 11 (except as to the disposition of taxes and penalties 12 collected and except that the returned merchandise credit for 13 this tax may not be taken against any State tax), 10, 11, 12 14 (except the reference therein to Section 2b of the Retailers' 15 Occupation Tax Act), 13 (except that any reference to the 16 State shall mean the territory of the commission), the first 17 paragraph of Section 15, 15.5, 16, 17, 18, 19 and 20 of the 18 Service Occupation Tax Act as fully as if those provisions 19 were set forth herein. 20 If the board of commissioners has not imposed a tax under 21 this subsection on the selling price of motor fuel or gasohol 22 before the effective date of this amendatory Act of the 91st 23 General Assembly, then the board shall not impose such a tax 24 on or after that date. If the board of commissioners has 25 imposed a tax under this subsection on the selling price of 26 motor fuel or gasohol before the effective date of this 27 amendatory Act of the 91st General Assembly, then the board 28 shall not increase the rate of the tax on or after that date. 29 If, as a result of the provisions of this amendatory Act of 30 the 91st General Assembly, the rate of tax imposed on the 31 sale of motor fuel and gasohol by the Retailers' Occupation 32 Tax Act returns to 6.25%, then the prohibition against 33 imposing a tax on the sale of motor fuel and gasohol and the 34 prohibition against an increase in the rate of any tax SB1310 Engrossed -159- LRB9110257SMdv 1 already imposed on the sale of motor fuel and gasohol are no 2 longer in effect. 3 Persons subject to any tax imposed under the authority 4 granted in this paragraph may reimburse themselves for their 5 serviceman's tax liability hereunder by separately stating 6 the tax as an additional charge, which charge may be stated 7 in combination, in a single amount, with State tax that 8 servicemen are authorized to collect under the Service Use 9 Tax Act, and any tax for which servicemen may be liable under 10 subsection (f) of Sec. 4.03 of the Regional Transportation 11 Authority Act, in accordance with such bracket schedules as 12 the Department may prescribe. 13 Whenever the Department determines that a refund should 14 be made under this paragraph to a claimant instead of issuing 15 a credit memorandum, the Department shall notify the State 16 Comptroller, who shall cause the warrant to be drawn for the 17 amount specified, and to the person named, in the 18 notification from the Department. The refund shall be paid 19 by the State Treasurer out of a county water commission tax 20 fund established under paragraph (g) of this Section. 21 Nothing in this paragraph shall be construed to authorize 22 a county water commission to impose a tax upon the privilege 23 of engaging in any business which under the Constitution of 24 the United States may not be made the subject of taxation by 25 the State. 26 (d) If a tax has been imposed under subsection (b), a 27 tax shall also imposed upon the privilege of using, in the 28 territory of the commission, any item of tangible personal 29 property that is purchased outside the territory at retail 30 from a retailer, and that is titled or registered with an 31 agency of this State's government, at a rate of 1/4% of the 32 selling price of the tangible personal property within the 33 territory, as "selling price" is defined in the Use Tax Act. 34 The tax shall be collected from persons whose Illinois SB1310 Engrossed -160- LRB9110257SMdv 1 address for titling or registration purposes is given as 2 being in the territory. The tax shall be collected by the 3 Department of Revenue for a county water commission. The tax 4 must be paid to the State, or an exemption determination must 5 be obtained from the Department of Revenue, before the title 6 or certificate of registration for the property may be 7 issued. The tax or proof of exemption may be transmitted to 8 the Department by way of the State agency with which, or the 9 State officer with whom, the tangible personal property must 10 be titled or registered if the Department and the State 11 agency or State officer determine that this procedure will 12 expedite the processing of applications for title or 13 registration. 14 The Department shall have full power to administer and 15 enforce this paragraph; to collect all taxes, penalties and 16 interest due hereunder; to dispose of taxes, penalties and 17 interest so collected in the manner hereinafter provided; and 18 to determine all rights to credit memoranda or refunds 19 arising on account of the erroneous payment of tax, penalty 20 or interest hereunder. In the administration of, and 21 compliance with this paragraph, the Department and persons 22 who are subject to this paragraph shall have the same rights, 23 remedies, privileges, immunities, powers and duties, and be 24 subject to the same conditions, restrictions, limitations, 25 penalties, exclusions, exemptions and definitions of terms 26 and employ the same modes of procedure, as are prescribed in 27 Sections 2 (except the definition of "retailer maintaining a 28 place of business in this State"), 3 through 3-80 (except 29 provisions pertaining to the State rate of tax, and except 30 provisions concerning collection or refunding of the tax by 31 retailers, and except that food for human consumption that is 32 to be consumed off the premises where it is sold (other than 33 alcoholic beverages, soft drinks, and food that has been 34 prepared for immediate consumption) and prescription and SB1310 Engrossed -161- LRB9110257SMdv 1 nonprescription medicines, drugs, medical appliances and 2 insulin, urine testing materials, syringes, and needles used 3 by diabetics, for human use, shall not be subject to tax 4 hereunder), 4, 11, 12, 12a, 14, 15, 19 (except the portions 5 pertaining to claims by retailers and except the last 6 paragraph concerning refunds), 20, 21 and 22 of the Use Tax 7 Act and Section 3-7 of the Uniform Penalty and Interest Act 8 that are not inconsistent with this paragraph, as fully as if 9 those provisions were set forth herein. 10 If the board of commissioners has not imposed a tax under 11 this subsection on the use of motor fuel or gasohol before 12 the effective date of this amendatory Act of the 91st General 13 Assembly, then the board shall not impose such a tax on or 14 after that date. If the board of commissioners has imposed a 15 tax under this subsection on the use of motor fuel or gasohol 16 before the effective date of this amendatory Act of the 91st 17 General Assembly, then the board shall not increase the rate 18 of the tax on or after that date. If, as a result of the 19 provisions of this amendatory Act of the 91st General 20 Assembly, the rate of tax imposed on the sale of motor fuel 21 and gasohol by the Retailers' Occupation Tax Act returns to 22 6.25%, then the prohibition against imposing a tax on the 23 sale of motor fuel and gasohol and the prohibition against an 24 increase in the rate of any tax already imposed on the sale 25 of motor fuel and gasohol are no longer in effect. 26 Whenever the Department determines that a refund should 27 be made under this paragraph to a claimant instead of issuing 28 a credit memorandum, the Department shall notify the State 29 Comptroller, who shall cause the order to be drawn for the 30 amount specified, and to the person named, in the 31 notification from the Department. The refund shall be paid 32 by the State Treasurer out of a county water commission tax 33 fund established under paragraph (g) of this Section. 34 (e) A certificate of registration issued by the State SB1310 Engrossed -162- LRB9110257SMdv 1 Department of Revenue to a retailer under the Retailers' 2 Occupation Tax Act or under the Service Occupation Tax Act 3 shall permit the registrant to engage in a business that is 4 taxed under the tax imposed under paragraphs (b), (c) or (d) 5 of this Section and no additional registration shall be 6 required under the tax. A certificate issued under the Use 7 Tax Act or the Service Use Tax Act shall be applicable with 8 regard to any tax imposed under paragraph (c) of this 9 Section. 10 (f) 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 county 15 water commission as of September 1 next following the 16 adoption and filing. Beginning January 1, 1992, an ordinance 17 or resolution imposing or discontinuing the tax hereunder 18 shall be adopted and a certified copy thereof filed with the 19 Department on or before the first day of July, whereupon the 20 Department shall proceed to administer and enforce this 21 Section as of the first day of October next following such 22 adoption and filing. Beginning January 1, 1993, an ordinance 23 or resolution imposing or discontinuing the tax hereunder 24 shall be adopted and a certified copy thereof filed with the 25 Department on or before the first day of October, whereupon 26 the Department shall proceed to administer and enforce this 27 Section as of the first day of January next following such 28 adoption and filing. 29 (g) 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 commission. 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 SB1310 Engrossed -163- LRB9110257SMdv 1 and certify to the Comptroller of the State of Illinois the 2 amount to be paid to the commission, 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. Within 5 10 days after receipt by the Comptroller of the certification 6 of the amount to be paid to the commission, the Comptroller 7 shall cause an order to be drawn for the payment for the 8 amount in accordance with the direction in the certification. 9 (Source: P.A. 91-51, eff. 6-30-99.) 10 Section 99. Effective date. This Act takes effect upon 11 becoming law, except that Sections 5 through 20 take effect 12 October 1, 2000.