93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB5015

 

Introduced 02/05/04, by Jim Sacia

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Premier Resort Areas Act. Provides that the governing body of a municipality or county may enact an ordinance or adopt a resolution declaring itself (for a county, the unincorporated areas only) to be a premier resort area if at least 40% of the equalized assessed value of the taxable commercial property within the municipality or unincorporated areas of the county is used by tourism-related retailers. Authorizes a premier resort area to impose an occupation or service tax on tourism-related retailers at a rate of 0.5% of the gross receipts from sales of tangible personal property at retail or 0.5% of the gross receipts from the selling price of all tangible personal property transferred as an incident to a sale of service, as appropriate. Authorizes intergovernmental cooperation agreements between 2 or more premier resort areas.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning taxes.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 1. Short title. This Act may be cited as the
5 Premier Resort Areas Act.
 
6     Section 5. Definitions. In this Act:
7     "Infrastructure expenses" means the costs of purchasing,
8 constructing, or improving any of the following: parking lots;
9 access ways; transportation facilities, including roads and
10 bridges; sewer and water facilities; parks, boat ramps,
11 beaches, and other recreational facilities; fire fighting
12 equipment; police vehicles; ambulances; and other equipment or
13 materials dedicated to public safety or public works.
14     "Premier resort area" means a county or municipality whose
15 governing body enacts an ordinance or adopts a resolution under
16 Section 10.
17     "Tourism-related retailers" means retailers classified in
18 the North American Industry Classification System, 1997
19 edition, as updated, published by the U.S. office of management
20 and budget under the following industry numbers:
21     (1) 31133 Confectionery Manufacturing from Purchased
22 Chocolate.
23     (2) 31134 Nonchocolate Confectionery Manufacturing.
24     (3) 311811 Retail Bakeries.
25     (4) 44313 Camera and Photographic Supplies Stores.
26     (5) 445291 Baked Goods Stores.
27     (6) 445292 Confectionery and Nut Stores.
28     (7) 445299 All Other Specialty Food Stores.
29     (8) 44531 Beer, Wine, and Liquor Stores.
30     (9) 44611 Pharmacies and Drug Stores.
31     (10) 44711 Gasoline Stations with Convenience Store.
32     (11) 44719 Other Gasoline Stations.

 

 

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1     (12) 45111 Sporting Goods Stores.
2     (13) 45291 Warehouse Clubs and Superstores.
3     (14) 45299 All Other General Merchandise Stores.
4     (15) 45322 Gift, Novelty, and Souvenir Stores.
5     (16) 48711 Scenic and Sightseeing Transportation, Land.
6     (17) 48721 Scenic and Sightseeing Transportation, Water.
7     (18) 48799 Scenic and Sightseeing Transportation, Other.
8     (19) 532292 Recreational Goods Rental.
9     (20) 561599 All Other Travel Arrangement and Reservation
10 Services.
11     (21) 61162 Sports and Recreation Instruction.
12     (22) 611699 All Other Miscellaneous Schools and
13 Instruction.
14     (23) 71111 Theater Companies and Dinner Theaters.
15     (24) 71119 Other Performing Arts Companies.
16     (25) 711212 Racetracks.
17     (26) 711219 Other Spectator Sports.
18     (27) 71131 Promoters of Performing Arts, Sports, and
19 Similar Events with Facilities.
20     (28) 71132 Promoters of Performing Arts, Sports, and
21 Similar Events without Facilities.
22     (29) 71219 Nature Parks and Other Similar Institutions.
23     (30) 71311 Amusement and Theme Parks.
24     (31) 71312 Amusement Arcades.
25     (32) 71321 Casinos (except Casino Hotels).
26     (33) 71329 Other Gambling Industries.
27     (34) 71391 Golf Courses and Country Clubs.
28     (35) 71392 Skiing Facilities.
29     (36) 71394 Fitness and Recreational Sports Centers.
30     (37) 71399 All Other Amusement and Recreation Industries.
31     (38) 72111 Hotels (except Casino Hotels) and Motels.
32     (39) 72112 Casino Hotels.
33     (40) 721191 Bed-and-Breakfast Inns.
34     (41) 721199 All Other Traveler Accommodation.
35     (42) 721211 RV (Recreational Vehicle) Parks and
36 Campgrounds.

 

 

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1     (43) 721214 Recreational and Vacation Camps (except
2 Campgrounds).
3     (44) 72211 Full-Service Restaurants.
4     (45) 722211 Limited-Service Restaurants.
5     (46) 722212 Cafeterias.
6     (47) 722213 Snack and Nonalcoholic Beverage Bars.
7     (48) 72231 Food Service Contractors.
8     (49) 72232 Caterers.
9     (50) 72241 Drinking Places (Alcoholic Beverages).
 
10     Section 10. Premier resort area creation.
11     (a) The governing body of a municipality or county, by a
12 two-thirds vote of the members of the governing body who are
13 present when the vote is taken, may enact an ordinance or adopt
14 a resolution declaring the municipality or the unincorporated
15 areas of the county, as appropriate, to be a premier resort
16 area if at least 40% of the equalized assessed value of the
17 taxable commercial property within the municipality or
18 unincorporated areas of the county is used by tourism-related
19 retailers.
20     (b) A municipality or county that is a premier resort area
21 may impose the tax under Section 20.
22     (c) If 2 or more contiguous municipalities or counties or
23 any combination of these that are premier resort areas each
24 impose the tax under Section 20, they may enter into
25 intergovernmental cooperation agreements under the
26 Intergovernmental Cooperation Act to cooperate in paying for
27 infrastructure expenses, in addition to any other authority
28 they have to act under that Act.
29     (d) The proceeds from a tax that is imposed under Section
30 20 may be used only to pay for infrastructure expenses within
31 the jurisdiction of a premier resort area.
 
32     Section 15. Jurisdiction. The jurisdiction of a premier
33 resort area is coterminous with the boundaries of a
34 municipality or the unincorporated areas of a county whose

 

 

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1 governing body enacts an ordinance or adopts a resolution under
2 subsection (a) of Section 10, or with the boundaries of 2 or
3 more municipalities or the unincorporated areas of 2 or more
4 counties or any combination of these that enter into a contract
5 under subsection (c) of Section 10.
 
6     Section 20. Retailers' occupation and service occupation
7 taxes.
8     (a) Except as provided in subsection (c), a municipality,
9 within the boundaries of the municipality, or a county, with
10 respect to the unincorporated areas of the county, all of which
11 is included in a premier resort area, may, by ordinance or
12 resolution, impose a tax upon tourism related retailers at a
13 rate of 0.5% of the gross receipts from sales of tangible
14 personal property at retail.
15     (b) Except as provided in subsection (c), a municipality,
16 within the boundaries of the municipality, or a county, with
17 respect to the unincorporated areas of the county, all of which
18 is included in a premier resort area, may, by ordinance or
19 resolution, impose a tax upon tourism related retailers engaged
20 in the municipality or unincorporated areas of the county in
21 the business of making sales of service at a rate of 0.5% of
22 the gross receipts from selling price of all tangible personal
23 property transferred by the servicemen as an incident to a sale
24 of service. No tax may be imposed by a premier resort area
25 pursuant to subsection (a) unless the premier resort area also
26 imposes a tax at the same rate under this subsection (b).
27     (c) A municipality may impose the tax under this Section in
28 the municipality. A county may impose the tax under this
29 Section in the unincorporated areas of the county.
30     (d) Nothing in this Section shall be construed to authorize
31 a premier resort area to impose a tax upon the privilege of
32 engaging in any business that under the Constitution of the
33 United States may not be made the subject of taxation by this
34 State.
 

 

 

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1     Section 25. Administration. The tax imposed by a premier
2 resort area under this Act and all civil penalties that may be
3 assessed as an incident to that tax shall be collected and
4 enforced by the State Department of Revenue. The certificate of
5 registration that is issued by the Department to a retailer
6 under the Retailers' Occupation Tax Act or under the Service
7 Occupation Tax Act shall permit the retailer to engage in a
8 business that is taxable under any ordinance or resolution
9 enacted pursuant to this Act without registering separately
10 with the Department under that ordinance or resolution or under
11 this Act. The Department shall have full power to administer
12 and enforce this Act; to collect all taxes and penalties due
13 under this Act; to dispose of taxes and penalties so collected
14 in the manner provided in this Section; and to determine all
15 rights to credit memoranda arising on account of the erroneous
16 payment of tax or penalty under this Act. In the administration
17 of and compliance with this Act, the Department and persons who
18 are subject to this Act shall have the same rights, remedies,
19 privileges, immunities, powers, and duties, and be subject to
20 the same conditions, restrictions, limitations, penalties, and
21 definitions of terms, and employ the same modes of procedure,
22 as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j,
23 1k, 1m, 1n, 2 through 2-65 (in respect to all provisions other
24 than the State rate of tax), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
25 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, and 13
26 of the Retailers' Occupation Tax Act, with respect to the
27 retailer's occupation tax imposed under this Act, and Sections
28 1a-1, 2, 2a, 3 through 3-50 (in respect to all provisions other
29 than the State rate of tax), 4 (except that the reference to
30 the State shall be to the taxing premier resort area), 5, 7, 8
31 (except that the jurisdiction to which the tax shall be a debt
32 to the extent indicated in that Section 8 shall be the taxing
33 premier resort area), 9 (except as to the disposition of taxes
34 and penalties collected, and except that the returned
35 merchandise credit for this premier resort area tax may not be
36 taken against any State tax), 10, 11, 12 (except the reference

 

 

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1 to Section 2b of the Retailers' Occupation Tax Act), 13 (except
2 that any reference to the State shall mean the taxing premier
3 resort area), the first paragraph of Section 15, 16, 17, 18,
4 19, and 20 of the Service Occupation Tax Act, with respect to
5 the service occupation tax imposed under this Act, and Section
6 3-7 of the Uniform Penalty and Interest Act, as fully as if
7 those provisions were set forth in this Section.
8     Persons subject to any tax imposed pursuant to the
9 authority granted in this Act may reimburse themselves for
10 their seller's tax liability under this Act by separately
11 stating the tax as an additional charge, which charge may be
12 stated in combination, in a single amount, with State tax that
13 sellers are required to collect under the Use Tax Act, pursuant
14 to such bracket schedules as the Department may prescribe.
15     If the Department determines that a refund should be made
16 under this Act to a claimant, instead of issuing a credit
17 memorandum, the Department shall notify the State Comptroller,
18 who shall cause the order to be drawn for the amount specified
19 and to the person named in the notification from the
20 Department. The refund shall be paid by the State Treasurer out
21 of the premier resort area retailers' occupation tax fund.
22     The Department shall forthwith pay over to the State
23 Treasurer, ex officio, as trustee, all taxes and penalties
24 collected under this Act. On or before the 25th day of each
25 calendar month, the Department shall prepare and certify to the
26 Comptroller the disbursement of stated sums of money to named
27 premier resort areas, the premier resort areas to be those from
28 which retailers have paid taxes or penalties under this Act to
29 the Department during the second preceding calendar month. The
30 amount to be paid to each premier resort area shall be the
31 amount (not including credit memoranda) collected under this
32 Act during the second preceding calendar month by the
33 Department plus an amount the Department determines is
34 necessary to offset any amounts that were erroneously paid to a
35 different taxing body, and not including an amount equal to the
36 amount of refunds made during the second preceding calendar

 

 

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1 month by the Department on behalf of the premier resort area,
2 and not including any amount that the Department determines is
3 necessary to offset any amounts that were payable to a
4 different taxing body but were erroneously paid to the premier
5 resort area. Within 10 days after receipt by the Comptroller of
6 the disbursement certification to the premier resort areas
7 provided for in this Section to be given to the Comptroller by
8 the Department, the Comptroller shall cause the orders to be
9 drawn for the respective amounts in accordance with the
10 directions contained in the certification.
11     An ordinance or resolution imposing or discontinuing the
12 tax under this Act or effecting a change in the rate of tax
13 shall either (i) be adopted and a certified copy thereof filed
14 with the Department on or before the first day of April,
15 whereupon the Department shall proceed to administer and
16 enforce the tax imposed under this Act as of the first day of
17 July next following the adoption and filing; or (ii) be adopted
18 and a certified copy thereof filed with the Department on or
19 before the first day of October, whereupon the Department shall
20 proceed to administer and enforce the tax imposed under this
21 Act as of the first day of January next following the adoption
22 and filing.
23     When certifying the amount of a monthly disbursement to a
24 premier resort area of the tax imposed under this Act, the
25 Department shall increase or decrease the amount by an amount
26 necessary to offset any misallocation of previous
27 disbursements. The offset amount shall be the amount
28 erroneously disbursed within the previous 6 months from the
29 time a misallocation is discovered.
30     The Department may adopt rules interpreting the
31 classifications under the definition of "tourism-related
32 retailers" and specifying means of determining the
33 classification of a business. If there is a dispute whether a
34 business is a tourism-related retailer, the Department's
35 decision is final.