Section 694.101  Nature of the Non-Home Rule Municipal Service Occupation Tax

 

a)         Authority to Impose Tax

On and after January 1, 2002, the corporate authorities of a non-home rule municipality are authorized by the Non-Home Rule Municipal Service Occupation Tax Act [65 ILCS 5/8-11-1.4] to impose the Non-Home Rule Municipal Service Occupation Tax on all persons engaged in the business of making sales of service in the municipality, if a proposition for the tax has been submitted to the electors of that municipality and approved by a majority of those voting on the question.  If imposed, the tax shall be imposed at a rate of not more than, through December 31, 2005, ½%, and, beginning on January 1, 2006, 1%, of the selling price of all tangible personal property transferred by the servicemen either in the form of tangible personal property or in the form of real estate as an incident to a sale of service for expenditure on public infrastructure or property tax relief or both as defined in Section 8-11-1.2 of the Illinois Municipal Code.  The tax may not be imposed on the sale of food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks and food which has been prepared for immediate consumption) and prescription and non-prescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes and needles used by diabetics.  The tax imposed by the corporate authorities under the Non-Home Rule Municipal Service Occupation Tax Act and this Part, and all civil penalties that may be assessed as an incident of that Act and this Part, may be imposed only in ¼% increments and shall be collected and enforced by the Illinois Department of Revenue (Department).

 

b)         Passing on the Tax

The legal incidence of the Non-Home Rule Municipal Service Occupation Tax is on the serviceman.  Nevertheless, the General Assembly has authorized persons subject to any tax imposed pursuant to the authority granted in the Non-Home Rule Municipal Service Occupation Tax Act to reimburse themselves for their Non-Home Rule Municipal Service Occupation Tax liability by separately stating the tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax which servicemen are required to collect under the Service Use Tax Act [35 ILCS 110], pursuant to the bracket schedules the Department has prescribed (see 86 Ill. Adm. Code 150.Table A).

 

c)         Exclusion from "Selling Price"

Any amount added by a serviceman to the selling price of tangible personal property as an incident to service because of a Non-Home Rule Municipal Service Occupation Tax, or because of the Illinois Service Occupation Tax [35 ILCS 115], the Illinois Use Tax [35 ILCS 105], the Metro East Mass Transit District Service Occupation Tax [70 ILCS 3610/5.01], the Regional Transportation Authority Service Occupation Tax [70 ILCS 3615/4.03] or the County Water Commission Service Occupation Tax [70 ILCS 3720/4(c)], shall not be regarded as a part of the selling price that is subject to the Non-Home Rule Municipal Service Occupation Tax.

 

(Source:  Amended at 32 Ill. Reg. 2834, effective February 8, 2008)

 

Section 694.105  Registration and Returns

 

a)         A serviceman's registration under the Illinois Service Occupation Tax Act [35 ILCS 115] or the Illinois Retailer's Occupation Tax Act [35 ILCS 120] is sufficient for the Non-Home Rule Municipal Service Occupation Tax Act.  No special registration for the Non-Home Rule Municipal Service Occupation Tax is required.

 

b)         The information required for the Non-Home Rule Municipal Service Occupation Tax shall be furnished on the taxpayer's Service Occupation Tax return form.

 

Section 694.110  Claims to Recover Erroneously Paid Tax

 

Claims for Multiple Taxes.  If a claimant files a claim for refund on a transaction that was subject to State and local taxes administered by the Department, the claim need not be filed separately for each type of tax.  A single claim for the total of all applicable taxes will suffice. The claim will be audited, heard, or otherwise processed as a single claim whenever possible. A single credit memorandum will be issued that may be used by the claimant or his authorized assignee to pay State or local tax liability as authorized in 86 Ill. Adm. Code 140.1505(b)(1).

 

Section 694.115  Jurisdictional Questions

 

a)         When used in this Part, "municipal" and "municipality" mean a city, village, or incorporated town, including an incorporated town that has superseded a civil township.

 

b)         If the Illinois Service Occupation Tax on a transaction is being remitted to the Department by the serviceman, the serviceman shall also pay Non-Home Rule Service Occupation Tax to the Department on the same transaction if the serviceman's place of business is located in the municipality.

 

Section 694.120  Service Occupation Tax Regulations

 

To avoid needless repetition, the substance and provisions of all Service Occupation Tax regulations (86 Ill. Adm. Code 140) that are not incompatible with the Non-Home Rule Municipal Service Occupation Tax Act shall apply to the tax imposed pursuant to this Part.

 

Section 694.125  Penalties, Interest and Procedures

 

All penalties (both civil and criminal) and provisions concerning interest and procedures (such as the making of assessments, the venue and mode of conducting hearings, subpoenas, matters pertaining to judicial review and other procedural subjects), together with statutes of limitation, are the same under the Non-Home Rule Municipal Service Occupation Tax Act as under the Illinois Service Occupation Tax Act [35 ILCS 115].

 

Section 694.130  Ordinance Filing Deadlines; When Tax Rate Change Applies

 

a)         Beginning January 1, 2014, if an ordinance or resolution imposing the tax under this Section, discontinuing the tax under this Section, or effecting a change in the rate of tax under this Section is adopted, a certified copy of that ordinance or resolution, together with a certification that the ordinance or resolution received referendum approval in the case of the imposition of or increase in the rate of the tax, shall be filed with the Department of Revenue, either:

 

1)         on or before the first day of May, whereupon the Department shall proceed to administer and enforce the ordinance as of the first day of July next following the adoption and filing; or

 

2)         on or before the first day of October, whereupon the Department shall proceed to administer and enforce the ordinance as of the first day of January next following the adoption and filing. [65 ILCS 5/8-11-1.1(b)]

 

b)         For purposes of determining which tax rate applies, the date of the sale of service is deemed to be the date of the delivery, to the user, of the tangible personal property that the serviceman retransfers as an incident to service.

 

(Source:  Amended at 39 Ill. Reg. 11527, effective July 29, 2015)