SB2326 EngrossedLRB098 10604 HLH 40868 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Department of Revenue Law of the Civil
5Administrative Code of Illinois is amended by changing Section
62505-250 as follows:
 
7    (20 ILCS 2505/2505-250)  (was 20 ILCS 2505/39c)
8    Sec. 2505-250. Compromising debts due to the State. Under
9no circumstances shall any officer or employee of the
10Department compromise any debt due to this State, except in
11case of actions of the Director after review by the board of
12appeals provided for by Section 2505-505 95-505. However,
13claims or accounts receivable of less than $1,000 may be
14written off the Department's records and cancelled by the
15Department without complying with the provisions of Section 2
16of the Uncollected State Claims Act when the Department
17determines that the cost of collecting the claim or account
18would exceed the amount to be collected. The Department shall
19submit to the Comptroller a list of all such claims or accounts
20written off the Department's records.
21(Source: P.A. 91-239, eff. 1-1-00.)
 
22    Section 10. The Use Tax Act is amended by changing Section

 

 

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13-61 as follows:
 
2    (35 ILCS 105/3-61)
3    Sec. 3-61. Motor vehicles; trailers; use as rolling stock
4definition.
5    (a) Through June 30, 2003, "use as rolling stock moving in
6interstate commerce" in subsections (b) and (c) of Section 3-55
7means for motor vehicles, as defined in Section 1-146 of the
8Illinois Vehicle Code, and trailers, as defined in Section
91-209 of the Illinois Vehicle Code, when on 15 or more
10occasions in a 12-month period the motor vehicle and trailer
11has carried persons or property for hire in interstate
12commerce, even just between points in Illinois, if the motor
13vehicle and trailer transports persons whose journeys or
14property whose shipments originate or terminate outside
15Illinois. This definition applies to all property purchased for
16the purpose of being attached to those motor vehicles or
17trailers as a part thereof.
18    (b) On and after July 1, 2003 and through June 30, 2004,
19"use as rolling stock moving in interstate commerce" in
20paragraphs (b) and (c) of Section 3-55 occurs for motor
21vehicles, as defined in Section 1-146 of the Illinois Vehicle
22Code, when during a 12-month period the rolling stock has
23carried persons or property for hire in interstate commerce for
2451% of its total trips and transports persons whose journeys or
25property whose shipments originate or terminate outside

 

 

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1Illinois. Trips that are only between points in Illinois shall
2not be counted as interstate trips when calculating whether the
3tangible personal property qualifies for the exemption but such
4trips shall be included in total trips taken.
5    (c) Beginning July 1, 2004, "use as rolling stock moving in
6interstate commerce" in paragraphs (b) and (c) of Section 3-55
7occurs for motor vehicles, as defined in Section 1-146 of the
8Illinois Vehicle Code, when during a 12-month period the
9rolling stock has carried persons or property for hire in
10interstate commerce for greater than 50% of its total trips for
11that period or for greater than 50% of its total miles for that
12period. The person claiming the exemption shall make an
13election at the time of purchase to use either the trips or
14mileage method. Persons who purchased motor vehicles prior to
15July 1, 2004 shall make an election to use either the trips or
16mileage method and document that election in their books and
17records. If no election is made under this subsection to use
18the trips or mileage method, the person shall be deemed to have
19chosen the mileage method. Any election to use either the trips
20or mileage method will remain in effect for that motor vehicle
21for any period for which the Department may issue a notice of
22tax liability under this Act.
23    For purposes of determining qualifying trips or miles,
24motor vehicles that carry persons or property for hire, even
25just between points in Illinois, will be considered used for
26hire in interstate commerce if the motor vehicle transports

 

 

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1persons whose journeys or property whose shipments originate or
2terminate outside Illinois. The exemption for motor vehicles
3used as rolling stock moving in interstate commerce may be
4claimed only for the following vehicles: (i) motor vehicles
5whose gross vehicle weight rating exceeds 16,000 pounds; and
6(ii) limousines, as defined in Section 1-139.1 of the Illinois
7Vehicle Code. This definition applies to all property purchased
8for the purpose of being attached to those motor vehicles as a
9part thereof.
10    (d) Beginning July 1, 2004, "use as rolling stock moving in
11interstate commerce" in paragraphs (b) and (c) of Section 3-55
12occurs for trailers, as defined in Section 1-209 of the
13Illinois Vehicle Code, semitrailers as defined in Section 1-187
14of the Illinois Vehicle Code, and pole trailers as defined in
15Section 1-161 of the Illinois Vehicle Code, when during a
1612-month period the rolling stock has carried persons or
17property for hire in interstate commerce for greater than 50%
18of its total trips for that period or for greater than 50% of
19its total miles for that period. The person claiming the
20exemption for a trailer or trailers that will not be dedicated
21to a motor vehicle or group of motor vehicles shall make an
22election at the time of purchase to use either the trips or
23mileage method. Persons who purchased trailers prior to July 1,
242004 that are not dedicated to a motor vehicle or group of
25motor vehicles shall make an election to use either the trips
26or mileage method and document that election in their books and

 

 

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1records. If no election is made under this subsection to use
2the trips or mileage method, the person shall be deemed to have
3chosen the mileage method. Any election to use either the trips
4or mileage method will remain in effect for that trailer for
5any period for which the Department may issue a notice of tax
6liability under this Act.
7    For purposes of determining qualifying trips or miles,
8trailers, semitrailers, or pole trailers that carry property
9for hire, even just between points in Illinois, will be
10considered used for hire in interstate commerce if the
11trailers, semitrailers, or pole trailers transport property
12whose shipments originate or terminate outside Illinois. This
13definition applies to all property purchased for the purpose of
14being attached to those trailers, semitrailers, or pole
15trailers as a part thereof. In lieu of a person providing
16documentation regarding the qualifying use of each individual
17trailer, semitrailer, or pole trailer, that person may document
18such qualifying use by providing documentation of the
19following:
20        (1) If a trailer, semitrailer, or pole trailer is
21    dedicated to a motor vehicle that qualifies as rolling
22    stock moving in interstate commerce under subsection (c) of
23    this Section, then that trailer, semitrailer, or pole
24    trailer qualifies as rolling stock moving in interstate
25    commerce under this subsection.
26        (2) If a trailer, semitrailer, or pole trailer is

 

 

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1    dedicated to a group of motor vehicles that all qualify as
2    rolling stock moving in interstate commerce under
3    subsection (c) of this Section, then that trailer,
4    semitrailer, or pole trailer qualifies as rolling stock
5    moving in interstate commerce under this subsection.
6        (3) If one or more trailers, semitrailers, or pole
7    trailers are dedicated to a group of motor vehicles and not
8    all of those motor vehicles in that group qualify as
9    rolling stock moving in interstate commerce under
10    subsection (c) of this Section, then the percentage of
11    those trailers, semitrailers, or pole trailers that
12    qualifies as rolling stock moving in interstate commerce
13    under this subsection is equal to the percentage of those
14    motor vehicles in that group that qualify as rolling stock
15    moving in interstate commerce under subsection (c) of this
16    Section to which those trailers, semitrailers, or pole
17    trailers are dedicated. However, to determine the
18    qualification for the exemption provided under this item
19    (3), the mathematical application of the qualifying
20    percentage to one or more trailers, semitrailers, or pole
21    trailers under this subpart shall not be allowed as to any
22    fraction of a trailer, semitrailer, or pole trailer.
23    (e) Beginning July 1, 2013, "use as rolling stock moving in
24interstate commerce" in paragraphs (b) and (c) of Section 3-55
25occurs for aircraft and watercraft when, during a 12-month
26period, the rolling stock has carried persons or property for

 

 

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1hire in interstate commerce for greater than 50% of its total
2trips for that period or for greater than 50% of its total
3miles for that period. The person claiming the exemption shall
4make an election at the time of purchase to use either the
5trips or mileage method. Persons who purchased aircraft or
6watercraft prior to July 1, 2013 shall make an election to use
7either the trips or mileage method and document that election
8in their books and records. If no election is made under this
9subsection to use the trips or mileage method, the person shall
10be deemed to have chosen the mileage method. For aircraft,
11flight hours may be used in lieu of recording miles in
12determining whether the aircraft meets the mileage test in this
13subsection. For watercraft, nautical miles or trip hours may be
14used in lieu of recording miles in determining whether the
15watercraft meets the mileage test in this subsection.
16    (f) The election to use either the trips or mileage method
17made under the provisions of subsections (c), (d), or (e) of
18this Section will remain in effect for the duration of the
19purchaser's ownership of that item.
20(Source: P.A. 95-528, eff. 8-28-07.)
 
21    Section 15. The Service Use Tax Act is amended by changing
22Section 3-51 as follows:
 
23    (35 ILCS 110/3-51)
24    Sec. 3-51. Motor vehicles; trailers; use as rolling stock

 

 

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1definition.
2    (a) Through June 30, 2003, "use as rolling stock moving in
3interstate commerce" in subsection (b) of Section 3-45 means
4for motor vehicles, as defined in Section 1-46 of the Illinois
5Vehicle Code, and trailers, as defined in Section 1-209 of the
6Illinois Vehicle Code, when on 15 or more occasions in a
712-month period the motor vehicle and trailer has carried
8persons or property for hire in interstate commerce, even just
9between points in Illinois, if the motor vehicle and trailer
10transports persons whose journeys or property whose shipments
11originate or terminate outside Illinois. This definition
12applies to all property purchased for the purpose of being
13attached to those motor vehicles or trailers as a part thereof.
14    (b) On and after July 1, 2003 and through June 30, 2004,
15"use as rolling stock moving in interstate commerce" in
16paragraphs (4) and (4a) of the definition of "sale of service"
17in Section 2 and subsection (b) of Section 3-45 occurs for
18motor vehicles, as defined in Section 1-146 of the Illinois
19Vehicle Code, when during a 12-month period the rolling stock
20has carried persons or property for hire in interstate commerce
21for 51% of its total trips and transports persons whose
22journeys or property whose shipments originate or terminate
23outside Illinois. Trips that are only between points in
24Illinois shall not be counted as interstate trips when
25calculating whether the tangible personal property qualifies
26for the exemption but such trips shall be included in total

 

 

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1trips taken.
2    (c) Beginning July 1, 2004, "use as rolling stock moving in
3interstate commerce" in paragraphs (4) and (4a) of the
4definition of "sale of service" in Section 2 and subsection (b)
5of Section 3-45 occurs for motor vehicles, as defined in
6Section 1-146 of the Illinois Vehicle Code, when during a
712-month period the rolling stock has carried persons or
8property for hire in interstate commerce for greater than 50%
9of its total trips for that period or for greater than 50% of
10its total miles for that period. The person claiming the
11exemption shall make an election at the time of purchase to use
12either the trips or mileage method. Persons who purchased motor
13vehicles prior to July 1, 2004 shall make an election to use
14either the trips or mileage method and document that election
15in their books and records. If no election is made under this
16subsection to use the trips or mileage method, the person shall
17be deemed to have chosen the mileage method. Any election to
18use either the trips or mileage method will remain in effect
19for that motor vehicle for any period for which the Department
20may issue a notice of tax liability under this Act.
21    For purposes of determining qualifying trips or miles,
22motor vehicles that carry persons or property for hire, even
23just between points in Illinois, will be considered used for
24hire in interstate commerce if the motor vehicle transports
25persons whose journeys or property whose shipments originate or
26terminate outside Illinois. The exemption for motor vehicles

 

 

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1used as rolling stock moving in interstate commerce may be
2claimed only for the following vehicles: (i) motor vehicles
3whose gross vehicle weight rating exceeds 16,000 pounds; and
4(ii) limousines, as defined in Section 1-139.1 of the Illinois
5Vehicle Code. This definition applies to all property purchased
6for the purpose of being attached to those motor vehicles as a
7part thereof.
8    (d) Beginning July 1, 2004, "use as rolling stock moving in
9interstate commerce" in paragraphs (4) and (4a) of the
10definition of "sale of service" in Section 2 and subsection (b)
11of Section 3-45 occurs for trailers, as defined in Section
121-209 of the Illinois Vehicle Code, semitrailers as defined in
13Section 1-187 of the Illinois Vehicle Code, and pole trailers
14as defined in Section 1-161 of the Illinois Vehicle Code, when
15during a 12-month period the rolling stock has carried persons
16or property for hire in interstate commerce for greater than
1750% of its total trips for that period or for greater than 50%
18of its total miles for that period. The person claiming the
19exemption for a trailer or trailers that will not be dedicated
20to a motor vehicle or group of motor vehicles shall make an
21election at the time of purchase to use either the trips or
22mileage method. Persons who purchased trailers prior to July 1,
232004 that are not dedicated to a motor vehicle or group of
24motor vehicles shall make an election to use either the trips
25or mileage method and document that election in their books and
26records. If no election is made under this subsection to use

 

 

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1the trips or mileage method, the person shall be deemed to have
2chosen the mileage method. Any election to use either the trips
3or mileage method will remain in effect for that trailer for
4any period for which the Department may issue a notice of tax
5liability under this Act.
6    For purposes of determining qualifying trips or miles,
7trailers, semitrailers, or pole trailers that carry property
8for hire, even just between points in Illinois, will be
9considered used for hire in interstate commerce if the
10trailers, semitrailers, or pole trailers transport property
11whose shipments originate or terminate outside Illinois. This
12definition applies to all property purchased for the purpose of
13being attached to those trailers, semitrailers, or pole
14trailers as a part thereof. In lieu of a person providing
15documentation regarding the qualifying use of each individual
16trailer, semitrailer, or pole trailer, that person may document
17such qualifying use by providing documentation of the
18following:
19        (1) If a trailer, semitrailer, or pole trailer is
20    dedicated to a motor vehicle that qualifies as rolling
21    stock moving in interstate commerce under subsection (c) of
22    this Section, then that trailer, semitrailer, or pole
23    trailer qualifies as rolling stock moving in interstate
24    commerce under this subsection.
25        (2) If a trailer, semitrailer, or pole trailer is
26    dedicated to a group of motor vehicles that all qualify as

 

 

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1    rolling stock moving in interstate commerce under
2    subsection (c) of this Section, then that trailer,
3    semitrailer, or pole trailer qualifies as rolling stock
4    moving in interstate commerce under this subsection.
5        (3) If one or more trailers, semitrailers, or pole
6    trailers are dedicated to a group of motor vehicles and not
7    all of those motor vehicles in that group qualify as
8    rolling stock moving in interstate commerce under
9    subsection (c) of this Section, then the percentage of
10    those trailers, semitrailers, or pole trailers that
11    qualifies as rolling stock moving in interstate commerce
12    under this subsection is equal to the percentage of those
13    motor vehicles in that group that qualify as rolling stock
14    moving in interstate commerce under subsection (c) of this
15    Section to which those trailers, semitrailers, or pole
16    trailers are dedicated. However, to determine the
17    qualification for the exemption provided under this item
18    (3), the mathematical application of the qualifying
19    percentage to one or more trailers, semitrailers, or pole
20    trailers under this subpart shall not be allowed as to any
21    fraction of a trailer, semitrailer, or pole trailer.
22    (e) Beginning July 1, 2013, "use as rolling stock moving in
23interstate commerce" in (i) paragraphs (4) and (4a) of the
24definition of "sale of service" in Section 2 and (ii)
25subsection (b) of Section 3-45 occurs for aircraft and
26watercraft when, during a 12-month period, the rolling stock

 

 

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1has carried persons or property for hire in interstate commerce
2for greater than 50% of its total trips for that period or for
3greater than 50% of its total miles for that period. The person
4claiming the exemption shall make an election at the time of
5purchase to use either the trips or mileage method. Persons who
6purchased aircraft or watercraft prior to July 1, 2013 shall
7make an election to use either the trips or mileage method and
8document that election in their books and records. If no
9election is made under this subsection to use the trips or
10mileage method, the person shall be deemed to have chosen the
11mileage method. For aircraft, flight hours may be used in lieu
12of recording miles in determining whether the aircraft meets
13the mileage test in this subsection. For watercraft, nautical
14miles or trip hours may be used in lieu of recording miles in
15determining whether the watercraft meets the mileage test in
16this subsection.
17    (f) The election to use either the trips or mileage method
18made under the provisions of subsections (c), (d), or (e) of
19this Section will remain in effect for the duration of the
20purchaser's ownership of that item.
21(Source: P.A. 95-528, eff. 8-28-07.)
 
22    Section 20. The Service Occupation Tax Act is amended by
23changing Section 2d as follows:
 
24    (35 ILCS 115/2d)

 

 

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1    Sec. 2d. Motor vehicles; trailers; use as rolling stock
2definition.
3    (a) Through June 30, 2003, "use as rolling stock moving in
4interstate commerce" in subsections (d) and (d-1) of the
5definition of "sale of service" in Section 2 means for motor
6vehicles, as defined in Section 1-146 of the Illinois Vehicle
7Code, and trailers, as defined in Section 1-209 of the Illinois
8Vehicle Code, when on 15 or more occasions in a 12-month period
9the motor vehicle and trailer has carried persons or property
10for hire in interstate commerce, even just between points in
11Illinois, if the motor vehicle and trailer transports persons
12whose journeys or property whose shipments originate or
13terminate outside Illinois. This definition applies to all
14property purchased for the purpose of being attached to those
15motor vehicles or trailers as a part thereof.
16    (b) On and after July 1, 2003 and through June 30, 2004,
17"use as rolling stock moving in interstate commerce" in
18paragraphs (d) and (d-1) of the definition of "sale of service"
19in Section 2 occurs for motor vehicles, as defined in Section
201-146 of the Illinois Vehicle Code, when during a 12-month
21period the rolling stock has carried persons or property for
22hire in interstate commerce for 51% of its total trips and
23transports persons whose journeys or property whose shipments
24originate or terminate outside Illinois. Trips that are only
25between points in Illinois will not be counted as interstate
26trips when calculating whether the tangible personal property

 

 

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1qualifies for the exemption but such trips will be included in
2total trips taken.
3    (c) Beginning July 1, 2004, "use as rolling stock moving in
4interstate commerce" in paragraphs (d) and (d-1) of the
5definition of "sale of service" in Section 2 occurs for motor
6vehicles, as defined in Section 1-146 of the Illinois Vehicle
7Code, when during a 12-month period the rolling stock has
8carried persons or property for hire in interstate commerce for
9greater than 50% of its total trips for that period or for
10greater than 50% of its total miles for that period. The person
11claiming the exemption shall make an election at the time of
12purchase to use either the trips or mileage method. Persons who
13purchased motor vehicles prior to July 1, 2004 shall make an
14election to use either the trips or mileage method and document
15that election in their books and records. If no election is
16made under this subsection to use the trips or mileage method,
17the person shall be deemed to have chosen the mileage method.
18Any election to use either the trips or mileage method will
19remain in effect for that motor vehicle for any period for
20which the Department may issue a notice of tax liability under
21this Act.
22    For purposes of determining qualifying trips or miles,
23motor vehicles that carry persons or property for hire, even
24just between points in Illinois, will be considered used for
25hire in interstate commerce if the motor vehicle transports
26persons whose journeys or property whose shipments originate or

 

 

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1terminate outside Illinois. The exemption for motor vehicles
2used as rolling stock moving in interstate commerce may be
3claimed only for the following vehicles: (i) motor vehicles
4whose gross vehicle weight rating exceeds 16,000 pounds; and
5(ii) limousines, as defined in Section 1-139.1 of the Illinois
6Vehicle Code. This definition applies to all property purchased
7for the purpose of being attached to those motor vehicles as a
8part thereof.
9    (d) Beginning July 1, 2004, "use as rolling stock moving in
10interstate commerce" in paragraphs (d) and (d-1) of the
11definition of "sale of service" in Section 2 occurs for
12trailers, as defined in Section 1-209 of the Illinois Vehicle
13Code, semitrailers as defined in Section 1-187 of the Illinois
14Vehicle Code, and pole trailers as defined in Section 1-161 of
15the Illinois Vehicle Code, when during a 12-month period the
16rolling stock has carried persons or property for hire in
17interstate commerce for greater than 50% of its total trips for
18that period or for greater than 50% of its total miles for that
19period. The person claiming the exemption for a trailer or
20trailers that will not be dedicated to a motor vehicle or group
21of motor vehicles shall make an election at the time of
22purchase to use either the trips or mileage method. Persons who
23purchased trailers prior to July 1, 2004 that are not dedicated
24to a motor vehicle or group of motor vehicles shall make an
25election to use either the trips or mileage method and document
26that election in their books and records. If no election is

 

 

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1made under this subsection to use the trips or mileage method,
2the person shall be deemed to have chosen the mileage method.
3Any election to use either the trips or mileage method will
4remain in effect for that trailer for any period for which the
5Department may issue a notice of tax liability under this Act.
6    For purposes of determining qualifying trips or miles,
7trailers, semitrailers, or pole trailers that carry property
8for hire, even just between points in Illinois, will be
9considered used for hire in interstate commerce if the
10trailers, semitrailers, or pole trailers transport property
11whose shipments originate or terminate outside Illinois. This
12definition applies to all property purchased for the purpose of
13being attached to those trailers, semitrailers, or pole
14trailers as a part thereof. In lieu of a person providing
15documentation regarding the qualifying use of each individual
16trailer, semitrailer, or pole trailer, that person may document
17such qualifying use by providing documentation of the
18following:
19        (1) If a trailer, semitrailer, or pole trailer is
20    dedicated to a motor vehicle that qualifies as rolling
21    stock moving in interstate commerce under subsection (c) of
22    this Section, then that trailer, semitrailer, or pole
23    trailer qualifies as rolling stock moving in interstate
24    commerce under this subsection.
25        (2) If a trailer, semitrailer, or pole trailer is
26    dedicated to a group of motor vehicles that all qualify as

 

 

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1    rolling stock moving in interstate commerce under
2    subsection (c) of this Section, then that trailer,
3    semitrailer, or pole trailer qualifies as rolling stock
4    moving in interstate commerce under this subsection.
5        (3) If one or more trailers, semitrailers, or pole
6    trailers are dedicated to a group of motor vehicles and not
7    all of those motor vehicles in that group qualify as
8    rolling stock moving in interstate commerce under
9    subsection (c) of this Section, then the percentage of
10    those trailers, semitrailers, or pole trailers that
11    qualifies as rolling stock moving in interstate commerce
12    under this subsection is equal to the percentage of those
13    motor vehicles in that group that qualify as rolling stock
14    moving in interstate commerce under subsection (c) of this
15    Section to which those trailers, semitrailers, or pole
16    trailers are dedicated. However, to determine the
17    qualification for the exemption provided under this item
18    (3), the mathematical application of the qualifying
19    percentage to one or more trailers, semitrailers, or pole
20    trailers under this subpart shall not be allowed as to any
21    fraction of a trailer, semitrailer, or pole trailer.
22    (e) Beginning July 1, 2013, "use as rolling stock moving in
23interstate commerce" in paragraphs (d) and (d-1) of the
24definition of "sale of service" in Section 2 occurs for
25aircraft and watercraft when, during a 12-month period, the
26rolling stock has carried persons or property for hire in

 

 

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1interstate commerce for greater than 50% of its total trips for
2that period or for greater than 50% of its total miles for that
3period. The person claiming the exemption shall make an
4election at the time of purchase to use either the trips or
5mileage method. Persons who purchased aircraft or watercraft
6prior to July 1, 2013 shall make an election to use either the
7trips or mileage method and document that election in their
8books and records. If no election is made under this subsection
9to use the trips or mileage method, the person shall be deemed
10to have chosen the mileage method. For aircraft, flight hours
11may be used in lieu of recording miles in determining whether
12the aircraft meets the mileage test in this subsection. For
13watercraft, nautical miles or trip hours may be used in lieu of
14recording miles in determining whether the watercraft meets the
15mileage test in this subsection.
16    (f) The election to use either the trips or mileage method
17made under the provisions of subsections (c), (d), or (e) of
18this Section will remain in effect for the duration of the
19purchaser's ownership of that item.
20(Source: P.A. 95-528, eff. 8-28-07.)
 
21    Section 25. The Retailers' Occupation Tax Act is amended by
22changing Sections 2-51 and 5 as follows:
 
23    (35 ILCS 120/2-51)
24    Sec. 2-51. Motor vehicles; trailers; use as rolling stock

 

 

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1definition.
2    (a) Through June 30, 2003, "use as rolling stock moving in
3interstate commerce" in paragraphs (12) and (13) of Section 2-5
4means for motor vehicles, as defined in Section 1-146 of the
5Illinois Vehicle Code, and trailers, as defined in Section
61-209 of the Illinois Vehicle Code, when on 15 or more
7occasions in a 12-month period the motor vehicle and trailer
8has carried persons or property for hire in interstate
9commerce, even just between points in Illinois, if the motor
10vehicle and trailer transports persons whose journeys or
11property whose shipments originate or terminate outside
12Illinois. This definition applies to all property purchased for
13the purpose of being attached to those motor vehicles or
14trailers as a part thereof.
15    (b) On and after July 1, 2003 and through June 30, 2004,
16"use as rolling stock moving in interstate commerce" in
17paragraphs (12) and (13) of Section 2-5 occurs for motor
18vehicles, as defined in Section 1-146 of the Illinois Vehicle
19Code, when during a 12-month period the rolling stock has
20carried persons or property for hire in interstate commerce for
2151% of its total trips and transports persons whose journeys or
22property whose shipments originate or terminate outside
23Illinois. Trips that are only between points in Illinois shall
24not be counted as interstate trips when calculating whether the
25tangible personal property qualifies for the exemption but such
26trips shall be included in total trips taken.

 

 

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1    (c) Beginning July 1, 2004, "use as rolling stock moving in
2interstate commerce" in paragraphs (12) and (13) of Section 2-5
3occurs for motor vehicles, as defined in Section 1-146 of the
4Illinois Vehicle Code, when during a 12-month period the
5rolling stock has carried persons or property for hire in
6interstate commerce for greater than 50% of its total trips for
7that period or for greater than 50% of its total miles for that
8period. The person claiming the exemption shall make an
9election at the time of purchase to use either the trips or
10mileage method. Persons who purchased motor vehicles prior to
11July 1, 2004 shall make an election to use either the trips or
12mileage method and document that election in their books and
13records. If no election is made under this subsection to use
14the trips or mileage method, the person shall be deemed to have
15chosen the mileage method. Any election to use either the trips
16or mileage method will remain in effect for that motor vehicle
17for any period for which the Department may issue a notice of
18tax liability under this Act.
19    For purposes of determining qualifying trips or miles,
20motor vehicles that carry persons or property for hire, even
21just between points in Illinois, will be considered used for
22hire in interstate commerce if the motor vehicle transports
23persons whose journeys or property whose shipments originate or
24terminate outside Illinois. The exemption for motor vehicles
25used as rolling stock moving in interstate commerce may be
26claimed only for the following vehicles: (i) motor vehicles

 

 

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1whose gross vehicle weight rating exceeds 16,000 pounds; and
2(ii) limousines, as defined in Section 1-139.1 of the Illinois
3Vehicle Code. This definition applies to all property purchased
4for the purpose of being attached to those motor vehicles as a
5part thereof.
6    (d) Beginning July 1, 2004, "use as rolling stock moving in
7interstate commerce" in paragraphs (12) and (13) of Section 2-5
8occurs for trailers, as defined in Section 1-209 of the
9Illinois Vehicle Code, semitrailers as defined in Section 1-187
10of the Illinois Vehicle Code, and pole trailers as defined in
11Section 1-161 of the Illinois Vehicle Code, when during a
1212-month period the rolling stock has carried persons or
13property for hire in interstate commerce for greater than 50%
14of its total trips for that period or for greater than 50% of
15its total miles for that period. The person claiming the
16exemption for a trailer or trailers that will not be dedicated
17to a motor vehicle or group of motor vehicles shall make an
18election at the time of purchase to use either the trips or
19mileage method. Persons who purchased trailers prior to July 1,
202004 that are not dedicated to a motor vehicle or group of
21motor vehicles shall make an election to use either the trips
22or mileage method and document that election in their books and
23records. If no election is made under this subsection to use
24the trips or mileage method, the person shall be deemed to have
25chosen the mileage method. Any election to use either the trips
26or mileage method will remain in effect for that trailer for

 

 

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1any period for which the Department may issue a notice of tax
2liability under this Act.
3    For purposes of determining qualifying trips or miles,
4trailers, semitrailers, or pole trailers that carry property
5for hire, even just between points in Illinois, will be
6considered used for hire in interstate commerce if the
7trailers, semitrailers, or pole trailers transport property
8whose shipments originate or terminate outside Illinois. This
9definition applies to all property purchased for the purpose of
10being attached to those trailers, semitrailers, or pole
11trailers as a part thereof. In lieu of a person providing
12documentation regarding the qualifying use of each individual
13trailer, semitrailer, or pole trailer, that person may document
14such qualifying use by providing documentation of the
15following:
16        (1) If a trailer, semitrailer, or pole trailer is
17    dedicated to a motor vehicle that qualifies as rolling
18    stock moving in interstate commerce under subsection (c) of
19    this Section, then that trailer, semitrailer, or pole
20    trailer qualifies as rolling stock moving in interstate
21    commerce under this subsection.
22        (2) If a trailer, semitrailer, or pole trailer is
23    dedicated to a group of motor vehicles that all qualify as
24    rolling stock moving in interstate commerce under
25    subsection (c) of this Section, then that trailer,
26    semitrailer, or pole trailer qualifies as rolling stock

 

 

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1    moving in interstate commerce under this subsection.
2        (3) If one or more trailers, semitrailers, or pole
3    trailers are dedicated to a group of motor vehicles and not
4    all of those motor vehicles in that group qualify as
5    rolling stock moving in interstate commerce under
6    subsection (c) of this Section, then the percentage of
7    those trailers, semitrailers, or pole trailers that
8    qualifies as rolling stock moving in interstate commerce
9    under this subsection is equal to the percentage of those
10    motor vehicles in that group that qualify as rolling stock
11    moving in interstate commerce under subsection (c) of this
12    Section to which those trailers, semitrailers, or pole
13    trailers are dedicated. However, to determine the
14    qualification for the exemption provided under this item
15    (3), the mathematical application of the qualifying
16    percentage to one or more trailers, semitrailers, or pole
17    trailers under this subpart shall not be allowed as to any
18    fraction of a trailer, semitrailer, or pole trailer.
19    (e) Beginning July 1, 2013, "use as rolling stock moving in
20interstate commerce" in paragraphs (12) and (13) of Section 2-5
21occurs for aircraft and watercraft when, during a 12-month
22period, the rolling stock has carried persons or property for
23hire in interstate commerce for greater than 50% of its total
24trips for that period or for greater than 50% of its total
25miles for that period. The person claiming the exemption shall
26make an election at the time of purchase to use either the

 

 

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1trips or mileage method. Persons who purchased aircraft or
2watercraft prior to July 1, 2013 shall make an election to use
3either the trips or mileage method and document that election
4in their books and records. If no election is made under this
5subsection to use the trips or mileage method, the person shall
6be deemed to have chosen the mileage method. For aircraft,
7flight hours may be used in lieu of recording miles in
8determining whether the aircraft meets the mileage test in this
9subsection. For watercraft, nautical miles or trip hours may be
10used in lieu of recording miles in determining whether the
11watercraft meets the mileage test in this subsection.
12    (f) The election to use either the trips or mileage method
13made under the provisions of subsections (c), (d), or (e) of
14this Section will remain in effect for the duration of the
15purchaser's ownership of that item.
16(Source: P.A. 95-528, eff. 8-28-07.)
 
17    (35 ILCS 120/5)  (from Ch. 120, par. 444)
18    Sec. 5. In case any person engaged in the business of
19selling tangible personal property at retail fails to file a
20return when and as herein required, but thereafter, prior to
21the Department's issuance of a notice of tax liability under
22this Section, files a return and pays the tax, he shall also
23pay a penalty in an amount determined in accordance with
24Section 3-3 of the Uniform Penalty and Interest Act.
25    In case any person engaged in the business of selling

 

 

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1tangible personal property at retail files the return at the
2time required by this Act but fails to pay the tax, or any part
3thereof, when due, a penalty in an amount determined in
4accordance with Section 3-3 of the Uniform Penalty and Interest
5Act shall be added thereto.
6    In case any person engaged in the business of selling
7tangible personal property at retail fails to file a return
8when and as herein required, but thereafter, prior to the
9Department's issuance of a notice of tax liability under this
10Section, files a return but fails to pay the entire tax, a
11penalty in an amount determined in accordance with Section 3-3
12of the Uniform Penalty and Interest Act shall be added thereto.
13    In case any person engaged in the business of selling
14tangible personal property at retail fails to file a return,
15the Department shall determine the amount of tax due from him
16according to its best judgment and information, which amount so
17fixed by the Department shall be prima facie correct and shall
18be prima facie evidence of the correctness of the amount of tax
19due, as shown in such determination. In making any such
20determination of tax due, it shall be permissible for the
21Department to show a figure that represents the tax due for any
22given period of 6 months instead of showing the amount of tax
23due for each month separately. Proof of such determination by
24the Department may be made at any hearing before the Department
25or in any legal proceeding by a reproduced copy or computer
26print-out of the Department's record relating thereto in the

 

 

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1name of the Department under the certificate of the Director of
2Revenue. If reproduced copies of the Department's records are
3offered as proof of such determination, the Director must
4certify that those copies are true and exact copies of records
5on file with the Department. If computer print-outs of the
6Department's records are offered as proof of such
7determination, the Director must certify that those computer
8print-outs are true and exact representations of records
9properly entered into standard electronic computing equipment,
10in the regular course of the Department's business, at or
11reasonably near the time of the occurrence of the facts
12recorded, from trustworthy and reliable information. Such
13certified reproduced copy or certified computer print-out
14shall, without further proof, be admitted into evidence before
15the Department or in any legal proceeding and shall be prima
16facie proof of the correctness of the amount of tax due, as
17shown therein. The Department shall issue the taxpayer a notice
18of tax liability for the amount of tax claimed by the
19Department to be due, together with a penalty of 30% thereof.
20    However, where the failure to file any tax return required
21under this Act on the date prescribed therefor (including any
22extensions thereof), is shown to be unintentional and
23nonfraudulent and has not occurred in the 2 years immediately
24preceding the failure to file on the prescribed date or is due
25to other reasonable cause the penalties imposed by this Act
26shall not apply.

 

 

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1    The taxpayer or the taxpayer's legal representative may,
2within 60 days after such notice, file a protest to such notice
3of tax liability with the Department and request a hearing
4thereon. The Department shall give notice to such person or the
5legal representative of such person of the time and place fixed
6for such hearing, and shall hold a hearing in conformity with
7the provisions of this Act, and pursuant thereto shall issue a
8final assessment to such person or to the legal representative
9of such person for the amount found to be due as a result of
10such hearing. On and after July 1, 2013, protests concerning
11matters that are under the jurisdiction of the Illinois
12Independent Tax Tribunal shall be filed with the Illinois
13Independent Tax Tribunal in accordance with the Illinois
14Independent Tax Tribunal Act of 2012, and hearings concerning
15those matters shall be held before the Tribunal in accordance
16with that Act. With respect to protests filed with the Illinois
17Independent Tax Tribunal, the Tribunal shall give notice to
18that person or the legal representative of that person of the
19time and place fixed for a hearing, and shall hold a hearing in
20conformity with the provisions of this Act and the Illinois
21Independent Tax Tribunal Act of 2012; and pursuant thereto the
22Department shall issue a final assessment to such person or to
23the legal representative of such person for the amount found to
24be due as a result of the hearing. With respect to protests
25filed with the Department prior to July 1, 2013 that would
26otherwise be subject to the jurisdiction of the Illinois

 

 

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1Independent Tax Tribunal, the taxpayer may elect to be subject
2to the provisions of the Illinois Independent Tax Tribunal Act
3of 2012 at any time on or after July 1, 2013, but not later than
430 days after the date on which the protest was filed. If made,
5the election shall be irrevocable.
6    If a protest to the notice of tax liability and a request
7for a hearing thereon is not filed within 60 days after such
8notice, such notice of tax liability shall become final without
9the necessity of a final assessment being issued and shall be
10deemed to be a final assessment.
11    After the issuance of a final assessment, or a notice of
12tax liability which becomes final without the necessity of
13actually issuing a final assessment as hereinbefore provided,
14the Department, at any time before such assessment is reduced
15to judgment, may (subject to rules of the Department) grant a
16rehearing (or grant departmental review and hold an original
17hearing if no previous hearing in the matter has been held)
18upon the application of the person aggrieved. Pursuant to such
19hearing or rehearing, the Department shall issue a revised
20final assessment to such person or his legal representative for
21the amount found to be due as a result of such hearing or
22rehearing.
23    Except in case of failure to file a return, or with the
24consent of the person to whom the notice of tax liability is to
25be issued, no notice of tax liability shall be issued on and
26after each July 1 and January 1 covering gross receipts

 

 

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1received during any month or period of time more than 3 years
2prior to such July 1 and January 1, respectively, except that
3if a return is not filed at the required time, no a notice of
4tax liability may be issued on and after each July 1 and
5January 1 for such return filed more than 3 years prior to such
6July 1 and January 1, respectively not later than 3 years after
7the time the return is filed. The foregoing limitations upon
8the issuance of a notice of tax liability shall not apply to
9the issuance of any such notice with respect to any period of
10time prior thereto in cases where the Department has, within
11the period of limitation then provided, notified a person of
12the amount of tax computed even though the Department had not
13determined the amount of tax due from such person in the manner
14required herein prior to the issuance of such notice, but in no
15case shall the amount of any such notice of tax liability for
16any period otherwise barred by this Act exceed for such period
17the amount shown in the notice theretofore issued.
18    If, when a tax or penalty under this Act becomes due and
19payable, the person alleged to be liable therefor is out of the
20State, the notice of tax liability may be issued within the
21times herein limited after his or her coming into or return to
22the State; and if, after the tax or penalty under this Act
23becomes due and payable, the person alleged to be liable
24therefor departs from and remains out of the State, the time of
25his or her absence is no part of the time limited for the
26issuance of the notice of tax liability; but the foregoing

 

 

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1provisions concerning absence from the State shall not apply to
2any case in which, at the time when a tax or penalty becomes
3due under this Act, the person allegedly liable therefor is not
4a resident of this State.
5    The time limitation period on the Department's right to
6issue a notice of tax liability shall not run during any period
7of time in which the order of any court has the effect of
8enjoining or restraining the Department from issuing the notice
9of tax liability.
10    In case of failure to pay the tax, or any portion thereof,
11or any penalty provided for in this Act, or interest, when due,
12the Department may bring suit to recover the amount of such
13tax, or portion thereof, or penalty or interest; or, if the
14taxpayer has died or become a person under legal disability,
15may file a claim therefor against his estate; provided that no
16such suit with respect to any tax, or portion thereof, or
17penalty, or interest shall be instituted more than 6 years
18after the date any proceedings in court for review thereof have
19terminated or the time for the taking thereof has expired
20without such proceedings being instituted, except with the
21consent of the person from whom such tax or penalty or interest
22is due; nor, except with such consent, shall such suit be
23instituted more than 6 years after the date any return is filed
24with the Department in cases where the return constitutes the
25basis for the suit for unpaid tax, or portion thereof, or
26penalty provided for in this Act, or interest: Provided that

 

 

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1the time limitation period on the Department's right to bring
2any such suit shall not run during any period of time in which
3the order of any court has the effect of enjoining or
4restraining the Department from bringing such suit.
5    After the expiration of the period within which the person
6assessed may file an action for judicial review under the
7Administrative Review Law or the Illinois Independent Tax
8Tribunal Act of 2012, as applicable, without such an action
9being filed, a certified copy of the final assessment or
10revised final assessment of the Department may be filed with
11the Circuit Court of the county in which the taxpayer has his
12principal place of business, or of Sangamon County in those
13cases in which the taxpayer does not have his principal place
14of business in this State. The certified copy of the final
15assessment or revised final assessment shall be accompanied by
16a certification which recites facts that are sufficient to show
17that the Department complied with the jurisdictional
18requirements of the Act in arriving at its final assessment or
19its revised final assessment and that the taxpayer had his
20opportunity for an administrative hearing and for judicial
21review, whether he availed himself or herself of either or both
22of these opportunities or not. If the court is satisfied that
23the Department complied with the jurisdictional requirements
24of the Act in arriving at its final assessment or its revised
25final assessment and that the taxpayer had his opportunity for
26an administrative hearing and for judicial review, whether he

 

 

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1availed himself of either or both of these opportunities or
2not, the court shall render judgment in favor of the Department
3and against the taxpayer for the amount shown to be due by the
4final assessment or the revised final assessment, plus any
5interest which may be due, and such judgment shall be entered
6in the judgment docket of the court. Such judgment shall bear
7the rate of interest as set by the Uniform Penalty and Interest
8Act, but otherwise shall have the same effect as other
9judgments. The judgment may be enforced, and all laws
10applicable to sales for the enforcement of a judgment shall be
11applicable to sales made under such judgments. The Department
12shall file the certified copy of its assessment, as herein
13provided, with the Circuit Court within 6 years after such
14assessment becomes final except when the taxpayer consents in
15writing to an extension of such filing period, and except that
16the time limitation period on the Department's right to file
17the certified copy of its assessment with the Circuit Court
18shall not run during any period of time in which the order of
19any court has the effect of enjoining or restraining the
20Department from filing such certified copy of its assessment
21with the Circuit Court.
22    If, when the cause of action for a proceeding in court
23accrues against a person, he or she is out of the State, the
24action may be commenced within the times herein limited, after
25his or her coming into or return to the State; and if, after
26the cause of action accrues, he or she departs from and remains

 

 

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1out of the State, the time of his or her absence is no part of
2the time limited for the commencement of the action; but the
3foregoing provisions concerning absence from the State shall
4not apply to any case in which, at the time the cause of action
5accrues, the party against whom the cause of action accrues is
6not a resident of this State. The time within which a court
7action is to be commenced by the Department hereunder shall not
8run from the date the taxpayer files a petition in bankruptcy
9under the Federal Bankruptcy Act until 30 days after notice of
10termination or expiration of the automatic stay imposed by the
11Federal Bankruptcy Act.
12    No claim shall be filed against the estate of any deceased
13person or any person under legal disability for any tax or
14penalty or part of either, or interest, except in the manner
15prescribed and within the time limited by the Probate Act of
161975, as amended.
17    The collection of tax or penalty or interest by any means
18provided for herein shall not be a bar to any prosecution under
19this Act.
20    In addition to any penalty provided for in this Act, any
21amount of tax which is not paid when due shall bear interest at
22the rate and in the manner specified in Sections 3-2 and 3-9 of
23the Uniform Penalty and Interest Act from the date when such
24tax becomes past due until such tax is paid or a judgment
25therefor is obtained by the Department. If the time for making
26or completing an audit of a taxpayer's books and records is

 

 

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1extended with the taxpayer's consent, at the request of and for
2the convenience of the Department, beyond the date on which the
3statute of limitations upon the issuance of a notice of tax
4liability by the Department otherwise would run, no interest
5shall accrue during the period of such extension or until a
6Notice of Tax Liability is issued, whichever occurs first.
7    In addition to any other remedy provided by this Act, and
8regardless of whether the Department is making or intends to
9make use of such other remedy, where a corporation or limited
10liability company registered under this Act violates the
11provisions of this Act or of any rule or regulation promulgated
12thereunder, the Department may give notice to the Attorney
13General of the identity of such a corporation or limited
14liability company and of the violations committed by such a
15corporation or limited liability company, for such action as is
16not already provided for by this Act and as the Attorney
17General may deem appropriate.
18    If the Department determines that an amount of tax or
19penalty or interest was incorrectly assessed, whether as the
20result of a mistake of fact or an error of law, the Department
21shall waive the amount of tax or penalty or interest that
22accrued due to the incorrect assessment.
23(Source: P.A. 96-1383, eff. 1-1-11; 97-1129, eff. 8-28-12;
24revised 10-10-12.)
 
25    Section 30. The Counties Code is amended by changing

 

 

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1Sections 5-1006.5 and 5-1006.7 as follows:
 
2    (55 ILCS 5/5-1006.5)
3    Sec. 5-1006.5. Special County Retailers' Occupation Tax
4For Public Safety, Public Facilities, or Transportation.
5    (a) The county board of any county may impose a tax upon
6all persons engaged in the business of selling tangible
7personal property, other than personal property titled or
8registered with an agency of this State's government, at retail
9in the county on the gross receipts from the sales made in the
10course of business to provide revenue to be used exclusively
11for public safety, public facility, or transportation purposes
12in that county, if a proposition for the tax has been submitted
13to the electors of that county and approved by a majority of
14those voting on the question. If imposed, this tax shall be
15imposed only in one-quarter percent increments. By resolution,
16the county board may order the proposition to be submitted at
17any election. If the tax is imposed for transportation purposes
18for expenditures for public highways or as authorized under the
19Illinois Highway Code, the county board must publish notice of
20the existence of its long-range highway transportation plan as
21required or described in Section 5-301 of the Illinois Highway
22Code and must make the plan publicly available prior to
23approval of the ordinance or resolution imposing the tax. If
24the tax is imposed for transportation purposes for expenditures
25for passenger rail transportation, the county board must

 

 

SB2326 Engrossed- 37 -LRB098 10604 HLH 40868 b

1publish notice of the existence of its long-range passenger
2rail transportation plan and must make the plan publicly
3available prior to approval of the ordinance or resolution
4imposing the tax.
5    If a tax is imposed for public facilities purposes, then
6the name of the project may be included in the proposition at
7the discretion of the county board as determined in the
8enabling resolution. For example, the "XXX Nursing Home" or the
9"YYY Museum".
10    The county clerk shall certify the question to the proper
11election authority, who shall submit the proposition at an
12election in accordance with the general election law.
13        (1) The proposition for public safety purposes shall be
14    in substantially the following form:
15        "To pay for public safety purposes, shall (name of
16    county) be authorized to impose an increase on its share of
17    local sales taxes by (insert rate)?"
18        As additional information on the ballot below the
19    question shall appear the following:
20        "This would mean that a consumer would pay an
21    additional (insert amount) in sales tax for every $100 of
22    tangible personal property bought at retail."
23        The county board may also opt to establish a sunset
24    provision at which time the additional sales tax would
25    cease being collected, if not terminated earlier by a vote
26    of the county board. If the county board votes to include a

 

 

SB2326 Engrossed- 38 -LRB098 10604 HLH 40868 b

1    sunset provision, the proposition for public safety
2    purposes shall be in substantially the following form:
3        "To pay for public safety purposes, shall (name of
4    county) be authorized to impose an increase on its share of
5    local sales taxes by (insert rate) for a period not to
6    exceed (insert number of years)?"
7        As additional information on the ballot below the
8    question shall appear the following:
9        "This would mean that a consumer would pay an
10    additional (insert amount) in sales tax for every $100 of
11    tangible personal property bought at retail. If imposed,
12    the additional tax would cease being collected at the end
13    of (insert number of years), if not terminated earlier by a
14    vote of the county board."
15        For the purposes of the paragraph, "public safety
16    purposes" means crime prevention, detention, fire
17    fighting, police, medical, ambulance, or other emergency
18    services.
19        Votes shall be recorded as "Yes" or "No".
20        (2) The proposition for transportation purposes shall
21    be in substantially the following form:
22        "To pay for improvements to roads and other
23    transportation purposes, shall (name of county) be
24    authorized to impose an increase on its share of local
25    sales taxes by (insert rate)?"
26        As additional information on the ballot below the

 

 

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1    question shall appear the following:
2        "This would mean that a consumer would pay an
3    additional (insert amount) in sales tax for every $100 of
4    tangible personal property bought at retail."
5        The county board may also opt to establish a sunset
6    provision at which time the additional sales tax would
7    cease being collected, if not terminated earlier by a vote
8    of the county board. If the county board votes to include a
9    sunset provision, the proposition for transportation
10    purposes shall be in substantially the following form:
11        "To pay for road improvements and other transportation
12    purposes, shall (name of county) be authorized to impose an
13    increase on its share of local sales taxes by (insert rate)
14    for a period not to exceed (insert number of years)?"
15        As additional information on the ballot below the
16    question shall appear the following:
17        "This would mean that a consumer would pay an
18    additional (insert amount) in sales tax for every $100 of
19    tangible personal property bought at retail. If imposed,
20    the additional tax would cease being collected at the end
21    of (insert number of years), if not terminated earlier by a
22    vote of the county board."
23        For the purposes of this paragraph, transportation
24    purposes means construction, maintenance, operation, and
25    improvement of public highways, any other purpose for which
26    a county may expend funds under the Illinois Highway Code,

 

 

SB2326 Engrossed- 40 -LRB098 10604 HLH 40868 b

1    and passenger rail transportation.
2        The votes shall be recorded as "Yes" or "No".
3        (3) The proposition for public facilities purposes
4    shall be in substantially the following form:
5        "To pay for public facilities purposes, shall (name of
6    county) be authorized to impose an increase on its share of
7    local sales taxes by (insert rate)?"
8        As additional information on the ballot below the
9    question shall appear the following:
10        "This would mean that a consumer would pay an
11    additional (insert amount) in sales tax for every $100 of
12    tangible personal property bought at retail."
13        The county board may also opt to establish a sunset
14    provision at which time the additional sales tax would
15    cease being collected, if not terminated earlier by a vote
16    of the county board. If the county board votes to include a
17    sunset provision, the proposition for public facilities
18    purposes shall be in substantially the following form:
19        "To pay for public facilities purposes, shall (name of
20    county) be authorized to impose an increase on its share of
21    local sales taxes by (insert rate) for a period not to
22    exceed (insert number of years)?"
23        As additional information on the ballot below the
24    question shall appear the following:
25        "This would mean that a consumer would pay an
26    additional (insert amount) in sales tax for every $100 of

 

 

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1    tangible personal property bought at retail. If imposed,
2    the additional tax would cease being collected at the end
3    of (insert number of years), if not terminated earlier by a
4    vote of the county board."
5        For purposes of this Section, "public facilities
6    purposes" means the acquisition, development,
7    construction, reconstruction, rehabilitation, improvement,
8    financing, architectural planning, and installation of
9    capital facilities consisting of buildings, structures,
10    and durable equipment and for the acquisition and
11    improvement of real property and interest in real property
12    required, or expected to be required, in connection with
13    the public facilities, for use by the county for the
14    furnishing of governmental services to its citizens,
15    including but not limited to museums and nursing homes.
16        The votes shall be recorded as "Yes" or "No".
17    If a majority of the electors voting on the proposition
18vote in favor of it, the county may impose the tax. A county
19may not submit more than one proposition authorized by this
20Section to the electors at any one time.
21    This additional tax may not be imposed on the sales of food
22for human consumption that is to be consumed off the premises
23where it is sold (other than alcoholic beverages, soft drinks,
24and food which has been prepared for immediate consumption) and
25prescription and non-prescription medicines, drugs, medical
26appliances and insulin, urine testing materials, syringes, and

 

 

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1needles used by diabetics. The tax imposed by a county under
2this Section and all civil penalties that may be assessed as an
3incident of the tax shall be collected and enforced by the
4Illinois Department of Revenue and deposited into a special
5fund created for that purpose. The certificate of registration
6that is issued by the Department to a retailer under the
7Retailers' Occupation Tax Act shall permit the retailer to
8engage in a business that is taxable without registering
9separately with the Department under an ordinance or resolution
10under this Section. The Department has full power to administer
11and enforce this Section, to collect all taxes and penalties
12due under this Section, to dispose of taxes and penalties so
13collected in the manner provided in this Section, and to
14determine all rights to credit memoranda arising on account of
15the erroneous payment of a tax or penalty under this Section.
16In the administration of and compliance with this Section, the
17Department and persons who are subject to this Section shall
18(i) have the same rights, remedies, privileges, immunities,
19powers, and duties, (ii) be subject to the same conditions,
20restrictions, limitations, penalties, and definitions of
21terms, and (iii) employ the same modes of procedure as are
22prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
231n, 2 through 2-70 (in respect to all provisions contained in
24those Sections other than the State rate of tax), 2a, 2b, 2c, 3
25(except provisions relating to transaction returns and quarter
26monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,

 

 

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15j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of
2the Retailers' Occupation Tax Act and Section 3-7 of the
3Uniform Penalty and Interest Act as if those provisions were
4set forth in this Section.
5    Persons subject to any tax imposed under the authority
6granted in this Section may reimburse themselves for their
7sellers' tax liability by separately stating the tax as an
8additional charge, which charge may be stated in combination,
9in a single amount, with State tax which sellers are required
10to collect under the Use Tax Act, pursuant to such bracketed
11schedules as the Department may prescribe.
12    Whenever the Department determines that a refund should be
13made under this Section to a claimant instead of issuing a
14credit memorandum, the Department shall notify the State
15Comptroller, who shall cause the order to be drawn for the
16amount specified and to the person named in the notification
17from the Department. The refund shall be paid by the State
18Treasurer out of the County Public Safety or Transportation
19Retailers' Occupation Tax Fund.
20    (b) If a tax has been imposed under subsection (a), a
21service occupation tax shall also be imposed at the same rate
22upon all persons engaged, in the county, in the business of
23making sales of service, who, as an incident to making those
24sales of service, transfer tangible personal property within
25the county as an incident to a sale of service. This tax may
26not be imposed on sales of food for human consumption that is

 

 

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1to be consumed off the premises where it is sold (other than
2alcoholic beverages, soft drinks, and food prepared for
3immediate consumption) and prescription and non-prescription
4medicines, drugs, medical appliances and insulin, urine
5testing materials, syringes, and needles used by diabetics. The
6tax imposed under this subsection and all civil penalties that
7may be assessed as an incident thereof shall be collected and
8enforced by the Department of Revenue. The Department has full
9power to administer and enforce this subsection; to collect all
10taxes and penalties due hereunder; to dispose of taxes and
11penalties so collected in the manner hereinafter provided; and
12to determine all rights to credit memoranda arising on account
13of the erroneous payment of tax or penalty hereunder. In the
14administration of, and compliance with this subsection, the
15Department and persons who are subject to this paragraph shall
16(i) have the same rights, remedies, privileges, immunities,
17powers, and duties, (ii) be subject to the same conditions,
18restrictions, limitations, penalties, exclusions, exemptions,
19and definitions of terms, and (iii) employ the same modes of
20procedure as are prescribed in Sections 2 (except that the
21reference to State in the definition of supplier maintaining a
22place of business in this State shall mean the county), 2a, 2b,
232c, 3 through 3-50 (in respect to all provisions therein other
24than the State rate of tax), 4 (except that the reference to
25the State shall be to the county), 5, 7, 8 (except that the
26jurisdiction to which the tax shall be a debt to the extent

 

 

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1indicated in that Section 8 shall be the county), 9 (except as
2to the disposition of taxes and penalties collected), 10, 11,
312 (except the reference therein to Section 2b of the
4Retailers' Occupation Tax Act), 13 (except that any reference
5to the State shall mean the county), Section 15, 16, 17, 18, 19
6and 20 of the Service Occupation Tax Act and Section 3-7 of the
7Uniform Penalty and Interest Act, as fully as if those
8provisions were set forth herein.
9    Persons subject to any tax imposed under the authority
10granted in this subsection may reimburse themselves for their
11serviceman's tax liability by separately stating the tax as an
12additional charge, which charge may be stated in combination,
13in a single amount, with State tax that servicemen are
14authorized to collect under the Service Use Tax Act, in
15accordance with such bracket schedules as the Department may
16prescribe.
17    Whenever the Department determines that a refund should be
18made under this subsection to a claimant instead of issuing a
19credit memorandum, the Department shall notify the State
20Comptroller, who shall cause the warrant to be drawn for the
21amount specified, and to the person named, in the notification
22from the Department. The refund shall be paid by the State
23Treasurer out of the County Public Safety or Transportation
24Retailers' Occupation Fund.
25    Nothing in this subsection shall be construed to authorize
26the county to impose a tax upon the privilege of engaging in

 

 

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1any business which under the Constitution of the United States
2may not be made the subject of taxation by the State.
3    (c) The Department shall immediately pay over to the State
4Treasurer, ex officio, as trustee, all taxes and penalties
5collected under this Section to be deposited into the County
6Public Safety or Transportation Retailers' Occupation Tax
7Fund, which shall be an unappropriated trust fund held outside
8of the State treasury.
9    As soon as possible after the first day of each month,
10beginning January 1, 2011, upon certification of the Department
11of Revenue, the Comptroller shall order transferred, and the
12Treasurer shall transfer, to the STAR Bonds Revenue Fund the
13local sales tax increment, as defined in the Innovation
14Development and Economy Act, collected under this Section
15during the second preceding calendar month for sales within a
16STAR bond district.
17    After the monthly transfer to the STAR Bonds Revenue Fund,
18on or before the 25th day of each calendar month, the
19Department shall prepare and certify to the Comptroller the
20disbursement of stated sums of money to the counties from which
21retailers have paid taxes or penalties to the Department during
22the second preceding calendar month. The amount to be paid to
23each county, and deposited by the county into its special fund
24created for the purposes of this Section, shall be the amount
25(not including credit memoranda) collected under this Section
26during the second preceding calendar month by the Department

 

 

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1plus an amount the Department determines is necessary to offset
2any amounts that were erroneously paid to a different taxing
3body, and not including (i) an amount equal to the amount of
4refunds made during the second preceding calendar month by the
5Department on behalf of the county, (ii) any amount that the
6Department determines is necessary to offset any amounts that
7were payable to a different taxing body but were erroneously
8paid to the county, and (iii) any amounts that are transferred
9to the STAR Bonds Revenue Fund. Within 10 days after receipt by
10the Comptroller of the disbursement certification to the
11counties provided for in this Section to be given to the
12Comptroller by the Department, the Comptroller shall cause the
13orders to be drawn for the respective amounts in accordance
14with directions contained in the certification.
15    In addition to the disbursement required by the preceding
16paragraph, an allocation shall be made in March of each year to
17each county that received more than $500,000 in disbursements
18under the preceding paragraph in the preceding calendar year.
19The allocation shall be in an amount equal to the average
20monthly distribution made to each such county under the
21preceding paragraph during the preceding calendar year
22(excluding the 2 months of highest receipts). The distribution
23made in March of each year subsequent to the year in which an
24allocation was made pursuant to this paragraph and the
25preceding paragraph shall be reduced by the amount allocated
26and disbursed under this paragraph in the preceding calendar

 

 

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1year. The Department shall prepare and certify to the
2Comptroller for disbursement the allocations made in
3accordance with this paragraph.
4    A county may direct, by ordinance, that all or a portion of
5the taxes and penalties collected under the Special County
6Retailers' Occupation Tax For Public Safety or Transportation
7be deposited into the Transportation Development Partnership
8Trust Fund.
9    (d) For the purpose of determining the local governmental
10unit whose tax is applicable, a retail sale by a producer of
11coal or another mineral mined in Illinois is a sale at retail
12at the place where the coal or other mineral mined in Illinois
13is extracted from the earth. This paragraph does not apply to
14coal or another mineral when it is delivered or shipped by the
15seller to the purchaser at a point outside Illinois so that the
16sale is exempt under the United States Constitution as a sale
17in interstate or foreign commerce.
18    (e) Nothing in this Section shall be construed to authorize
19a county to impose a tax upon the privilege of engaging in any
20business that under the Constitution of the United States may
21not be made the subject of taxation by this State.
22    (e-5) If a county imposes a tax under this Section, the
23county board may, by ordinance, discontinue or lower the rate
24of the tax. If the county board lowers the tax rate or
25discontinues the tax, a referendum must be held in accordance
26with subsection (a) of this Section in order to increase the

 

 

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1rate of the tax or to reimpose the discontinued tax.
2    (f) Beginning April 1, 1998 and through December 31, 2013,
3the results of any election authorizing a proposition to impose
4a tax under this Section or effecting a change in the rate of
5tax, or any ordinance lowering the rate or discontinuing the
6tax, shall be certified by the county clerk and filed with the
7Illinois Department of Revenue either (i) on or before the
8first day of April, whereupon the Department shall proceed to
9administer and enforce the tax as of the first day of July next
10following the filing; or (ii) on or before the first day of
11October, whereupon the Department shall proceed to administer
12and enforce the tax as of the first day of January next
13following the filing.
14    Beginning January 1, 2014, the results of any election
15authorizing a proposition to impose a tax under this Section or
16effecting an increase in the rate of tax, along with the
17ordinance adopted to impose the tax or increase the rate of the
18tax, or any ordinance adopted to lower the rate or discontinue
19the tax, shall be certified by the county clerk and filed with
20the Illinois Department of Revenue either (i) on or before the
21first day of May, whereupon the Department shall proceed to
22administer and enforce the tax as of the first day of July next
23following the adoption and filing; or (ii) on or before the
24first day of October, whereupon the Department shall proceed to
25administer and enforce the tax as of the first day of January
26next following the adoption and filing.

 

 

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1    (g) When certifying the amount of a monthly disbursement to
2a county under this Section, the Department shall increase or
3decrease the amounts by an amount necessary to offset any
4miscalculation of previous disbursements. The offset amount
5shall be the amount erroneously disbursed within the previous 6
6months from the time a miscalculation is discovered.
7    (h) This Section may be cited as the "Special County
8Occupation Tax For Public Safety, Public Facilities, or
9Transportation Law".
10    (i) For purposes of this Section, "public safety" includes,
11but is not limited to, crime prevention, detention, fire
12fighting, police, medical, ambulance, or other emergency
13services. The county may share tax proceeds received under this
14Section for public safety purposes, including proceeds
15received before August 4, 2009 (the effective date of Public
16Act 96-124), with any fire protection district located in the
17county. For the purposes of this Section, "transportation"
18includes, but is not limited to, the construction, maintenance,
19operation, and improvement of public highways, any other
20purpose for which a county may expend funds under the Illinois
21Highway Code, and passenger rail transportation. For the
22purposes of this Section, "public facilities purposes"
23includes, but is not limited to, the acquisition, development,
24construction, reconstruction, rehabilitation, improvement,
25financing, architectural planning, and installation of capital
26facilities consisting of buildings, structures, and durable

 

 

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1equipment and for the acquisition and improvement of real
2property and interest in real property required, or expected to
3be required, in connection with the public facilities, for use
4by the county for the furnishing of governmental services to
5its citizens, including but not limited to museums and nursing
6homes.
7    (j) The Department may promulgate rules to implement Public
8Act 95-1002 only to the extent necessary to apply the existing
9rules for the Special County Retailers' Occupation Tax for
10Public Safety to this new purpose for public facilities.
11(Source: P.A. 96-124, eff. 8-4-09; 96-622, eff. 8-24-09;
1296-845, eff. 7-1-12; 96-939, eff. 6-24-10; 96-1000, eff.
137-2-10.)
 
14    (55 ILCS 5/5-1006.7)
15    Sec. 5-1006.7. School facility occupation taxes.
16    (a) In any county, a tax shall be imposed upon all persons
17engaged in the business of selling tangible personal property,
18other than personal property titled or registered with an
19agency of this State's government, at retail in the county on
20the gross receipts from the sales made in the course of
21business to provide revenue to be used exclusively for school
22facility purposes if a proposition for the tax has been
23submitted to the electors of that county and approved by a
24majority of those voting on the question as provided in
25subsection (c). The tax under this Section shall be imposed

 

 

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1only in one-quarter percent increments and may not exceed 1%.
2    This additional tax may not be imposed on the sale of food
3for human consumption that is to be consumed off the premises
4where it is sold (other than alcoholic beverages, soft drinks,
5and food that has been prepared for immediate consumption) and
6prescription and non-prescription medicines, drugs, medical
7appliances and insulin, urine testing materials, syringes and
8needles used by diabetics. The Department of Revenue has full
9power to administer and enforce this subsection, to collect all
10taxes and penalties due under this subsection, to dispose of
11taxes and penalties so collected in the manner provided in this
12subsection, and to determine all rights to credit memoranda
13arising on account of the erroneous payment of a tax or penalty
14under this subsection. The Department shall deposit all taxes
15and penalties collected under this subsection into a special
16fund created for that purpose.
17    In the administration of and compliance with this
18subsection, the Department and persons who are subject to this
19subsection (i) have the same rights, remedies, privileges,
20immunities, powers, and duties, (ii) are subject to the same
21conditions, restrictions, limitations, penalties, and
22definitions of terms, and (iii) shall employ the same modes of
23procedure as are set forth in Sections 1 through 1o, 2 through
242-70 (in respect to all provisions contained in those Sections
25other than the State rate of tax), 2a through 2h, 3 (except as
26to the disposition of taxes and penalties collected), 4, 5, 5a,

 

 

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15b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8,
29, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
3and all provisions of the Uniform Penalty and Interest Act as
4if those provisions were set forth in this subsection.
5    The certificate of registration that is issued by the
6Department to a retailer under the Retailers' Occupation Tax
7Act permits the retailer to engage in a business that is
8taxable without registering separately with the Department
9under an ordinance or resolution under this subsection.
10    Persons subject to any tax imposed under the authority
11granted in this subsection may reimburse themselves for their
12seller's tax liability by separately stating that tax as an
13additional charge, which may be stated in combination, in a
14single amount, with State tax that sellers are required to
15collect under the Use Tax Act, pursuant to any bracketed
16schedules set forth by the Department.
17    (b) If a tax has been imposed under subsection (a), then a
18service occupation tax must also be imposed at the same rate
19upon all persons engaged, in the county, in the business of
20making sales of service, who, as an incident to making those
21sales of service, transfer tangible personal property within
22the county as an incident to a sale of service.
23    This tax may not be imposed on sales of food for human
24consumption that is to be consumed off the premises where it is
25sold (other than alcoholic beverages, soft drinks, and food
26prepared for immediate consumption) and prescription and

 

 

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1non-prescription medicines, drugs, medical appliances and
2insulin, urine testing materials, syringes, and needles used by
3diabetics.
4    The tax imposed under this subsection and all civil
5penalties that may be assessed as an incident thereof shall be
6collected and enforced by the Department and deposited into a
7special fund created for that purpose. The Department has full
8power to administer and enforce this subsection, to collect all
9taxes and penalties due under this subsection, to dispose of
10taxes and penalties so collected in the manner provided in this
11subsection, and to determine all rights to credit memoranda
12arising on account of the erroneous payment of a tax or penalty
13under this subsection.
14    In the administration of and compliance with this
15subsection, the Department and persons who are subject to this
16subsection shall (i) have the same rights, remedies,
17privileges, immunities, powers and duties, (ii) be subject to
18the same conditions, restrictions, limitations, penalties and
19definition of terms, and (iii) employ the same modes of
20procedure as are set forth in Sections 2 (except that that
21reference to State in the definition of supplier maintaining a
22place of business in this State means the county), 2a through
232d, 3 through 3-50 (in respect to all provisions contained in
24those Sections other than the State rate of tax), 4 (except
25that the reference to the State shall be to the county), 5, 7,
268 (except that the jurisdiction to which the tax is a debt to

 

 

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1the extent indicated in that Section 8 is the county), 9
2(except as to the disposition of taxes and penalties
3collected), 10, 11, 12 (except the reference therein to Section
42b of the Retailers' Occupation Tax Act), 13 (except that any
5reference to the State means the county), Section 15, 16, 17,
618, 19, and 20 of the Service Occupation Tax Act and all
7provisions of the Uniform Penalty and Interest Act, as fully as
8if those provisions were set forth herein.
9    Persons subject to any tax imposed under the authority
10granted in this subsection may reimburse themselves for their
11serviceman's tax liability by separately stating the tax as an
12additional charge, which may be stated in combination, in a
13single amount, with State tax that servicemen are authorized to
14collect under the Service Use Tax Act, pursuant to any
15bracketed schedules set forth by the Department.
16    (c) The tax under this Section may not be imposed until the
17question of imposing the tax has been submitted to the electors
18of the county at a regular election and approved by a majority
19of the electors voting on the question. For all regular
20elections held prior to the effective date of this amendatory
21Act of the 97th General Assembly, upon a resolution by the
22county board or a resolution by school district boards that
23represent at least 51% of the student enrollment within the
24county, the county board must certify the question to the
25proper election authority in accordance with the Election Code.
26    For all regular elections held prior to the effective date

 

 

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1of this amendatory Act of the 97th General Assembly, the
2election authority must submit the question in substantially
3the following form:
4        Shall (name of county) be authorized to impose a
5    retailers' occupation tax and a service occupation tax
6    (commonly referred to as a "sales tax") at a rate of
7    (insert rate) to be used exclusively for school facility
8    purposes?
9The election authority must record the votes as "Yes" or "No".
10    If a majority of the electors voting on the question vote
11in the affirmative, then the county may, thereafter, impose the
12tax.
13    For all regular elections held on or after the effective
14date of this amendatory Act of the 97th General Assembly, the
15regional superintendent of schools for the county must, upon
16receipt of a resolution or resolutions of school district
17boards that represent more than 50% of the student enrollment
18within the county, certify the question to the proper election
19authority for submission to the electors of the county at the
20next regular election at which the question lawfully may be
21submitted to the electors, all in accordance with the Election
22Code.
23    For all regular elections held on or after the effective
24date of this amendatory Act of the 97th General Assembly, the
25election authority must submit the question in substantially
26the following form:

 

 

SB2326 Engrossed- 57 -LRB098 10604 HLH 40868 b

1        Shall a retailers' occupation tax and a service
2    occupation tax (commonly referred to as a "sales tax") be
3    imposed in (name of county) at a rate of (insert rate) to
4    be used exclusively for school facility purposes?
5The election authority must record the votes as "Yes" or "No".
6    If a majority of the electors voting on the question vote
7in the affirmative, then the tax shall be imposed at the rate
8set forth in the question.
9    For the purposes of this subsection (c), "enrollment" means
10the head count of the students residing in the county on the
11last school day of September of each year, which must be
12reported on the Illinois State Board of Education Public School
13Fall Enrollment/Housing Report.
14    (d) The Department shall immediately pay over to the State
15Treasurer, ex officio, as trustee, all taxes and penalties
16collected under this Section to be deposited into the School
17Facility Occupation Tax Fund, which shall be an unappropriated
18trust fund held outside the State treasury.
19    On or before the 25th day of each calendar month, the
20Department shall prepare and certify to the Comptroller the
21disbursement of stated sums of money to the regional
22superintendents of schools in counties from which retailers or
23servicemen have paid taxes or penalties to the Department
24during the second preceding calendar month. The amount to be
25paid to each regional superintendent of schools and disbursed
26to him or her in accordance with Section 3-14.31 of the School

 

 

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1Code, is equal to the amount (not including credit memoranda)
2collected from the county under this Section during the second
3preceding calendar month by the Department, (i) less 2% of that
4amount, which shall be deposited into the Tax Compliance and
5Administration Fund and shall be used by the Department,
6subject to appropriation, to cover the costs of the Department
7in administering and enforcing the provisions of this Section,
8on behalf of the county, (ii) plus an amount that the
9Department determines is necessary to offset any amounts that
10were erroneously paid to a different taxing body; (iii) less an
11amount equal to the amount of refunds made during the second
12preceding calendar month by the Department on behalf of the
13county; and (iv) less any amount that the Department determines
14is necessary to offset any amounts that were payable to a
15different taxing body but were erroneously paid to the county.
16When certifying the amount of a monthly disbursement to a
17regional superintendent of schools under this Section, the
18Department shall increase or decrease the amounts by an amount
19necessary to offset any miscalculation of previous
20disbursements within the previous 6 months from the time a
21miscalculation is discovered.
22    Within 10 days after receipt by the Comptroller from the
23Department of the disbursement certification to the regional
24superintendents of the schools provided for in this Section,
25the Comptroller shall cause the orders to be drawn for the
26respective amounts in accordance with directions contained in

 

 

SB2326 Engrossed- 59 -LRB098 10604 HLH 40868 b

1the certification.
2    If the Department determines that a refund should be made
3under this Section to a claimant instead of issuing a credit
4memorandum, then the Department shall notify the Comptroller,
5who shall cause the order to be drawn for the amount specified
6and to the person named in the notification from the
7Department. The refund shall be paid by the Treasurer out of
8the School Facility Occupation Tax Fund.
9    (e) For the purposes of determining the local governmental
10unit whose tax is applicable, a retail sale by a producer of
11coal or another mineral mined in Illinois is a sale at retail
12at the place where the coal or other mineral mined in Illinois
13is extracted from the earth. This subsection does not apply to
14coal or another mineral when it is delivered or shipped by the
15seller to the purchaser at a point outside Illinois so that the
16sale is exempt under the United States Constitution as a sale
17in interstate or foreign commerce.
18    (f) Nothing in this Section may be construed to authorize a
19tax to be imposed upon the privilege of engaging in any
20business that under the Constitution of the United States may
21not be made the subject of taxation by this State.
22    (g) If a county board imposes a tax under this Section
23pursuant to a referendum held before the effective date of this
24amendatory Act of the 97th General Assembly at a rate below the
25rate set forth in the question approved by a majority of
26electors of that county voting on the question as provided in

 

 

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1subsection (c), then the county board may, by ordinance,
2increase the rate of the tax up to the rate set forth in the
3question approved by a majority of electors of that county
4voting on the question as provided in subsection (c). If a
5county board imposes a tax under this Section pursuant to a
6referendum held before the effective date of this amendatory
7Act of the 97th General Assembly, then the board may, by
8ordinance, discontinue or reduce the rate of the tax. If a tax
9is imposed under this Section pursuant to a referendum held on
10or after the effective date of this amendatory Act of the 97th
11General Assembly, then the county board may reduce or
12discontinue the tax, but only in accordance with subsection
13(h-5) of this Section. If, however, a school board issues bonds
14that are secured by the proceeds of the tax under this Section,
15then the county board may not reduce the tax rate or
16discontinue the tax if that rate reduction or discontinuance
17would adversely affect the school board's ability to pay the
18principal and interest on those bonds as they become due or
19necessitate the extension of additional property taxes to pay
20the principal and interest on those bonds. If the county board
21reduces the tax rate or discontinues the tax, then a referendum
22must be held in accordance with subsection (c) of this Section
23in order to increase the rate of the tax or to reimpose the
24discontinued tax.
25    Until January 1, 2014, the The results of any election that
26imposes, reduces, or discontinues a tax under this Section must

 

 

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1be certified by the election authority, and any ordinance that
2increases or lowers the rate or discontinues the tax must be
3certified by the county clerk and, in each case, filed with the
4Illinois Department of Revenue either (i) on or before the
5first day of April, whereupon the Department shall proceed to
6administer and enforce the tax or change in the rate as of the
7first day of July next following the filing; or (ii) on or
8before the first day of October, whereupon the Department shall
9proceed to administer and enforce the tax or change in the rate
10as of the first day of January next following the filing.
11    Beginning January 1, 2014, the results of any election that
12imposes, reduces, or discontinues a tax under this Section must
13be certified by the election authority, and any ordinance that
14increases or lowers the rate or discontinues the tax must be
15certified by the county clerk and, in each case, filed with the
16Illinois Department of Revenue either (i) on or before the
17first day of May, whereupon the Department shall proceed to
18administer and enforce the tax or change in the rate as of the
19first day of July next following the filing; or (ii) on or
20before the first day of October, whereupon the Department shall
21proceed to administer and enforce the tax or change in the rate
22as of the first day of January next following the filing.
23    (h) For purposes of this Section, "school facility
24purposes" means (i) the acquisition, development,
25construction, reconstruction, rehabilitation, improvement,
26financing, architectural planning, and installation of capital

 

 

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1facilities consisting of buildings, structures, and durable
2equipment and for the acquisition and improvement of real
3property and interest in real property required, or expected to
4be required, in connection with the capital facilities and (ii)
5the payment of bonds or other obligations heretofore or
6hereafter issued, including bonds or other obligations
7heretofore or hereafter issued to refund or to continue to
8refund bonds or other obligations issued, for school facility
9purposes, provided that the taxes levied to pay those bonds are
10abated by the amount of the taxes imposed under this Section
11that are used to pay those bonds. "School-facility purposes"
12also includes fire prevention, safety, energy conservation,
13disabled accessibility, school security, and specified repair
14purposes set forth under Section 17-2.11 of the School Code.
15    (h-5) A county board in a county where a tax has been
16imposed under this Section pursuant to a referendum held on or
17after the effective date of this amendatory Act of the 97th
18General Assembly may, by ordinance or resolution, submit to the
19voters of the county the question of reducing or discontinuing
20the tax. In the ordinance or resolution, the county board shall
21certify the question to the proper election authority in
22accordance with the Election Code. The election authority must
23submit the question in substantially the following form:
24        Shall the school facility retailers' occupation tax
25    and service occupation tax (commonly referred to as the
26    "school facility sales tax") currently imposed in (name of

 

 

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1    county) at a rate of (insert rate) be (reduced to (insert
2    rate))(discontinued)?
3If a majority of the electors voting on the question vote in
4the affirmative, then, subject to the provisions of subsection
5(g) of this Section, the tax shall be reduced or discontinued
6as set forth in the question.
7    (i) This Section does not apply to Cook County.
8    (j) This Section may be cited as the County School Facility
9Occupation Tax Law.
10(Source: P.A. 97-542, eff. 8-23-11; 97-813, eff. 7-13-12.)
 
11    (55 ILCS 5/5-1035 rep.)
12    Section 40. The Counties Code is amended by repealing
13Section 5-1035.
 
14    Section 45. The Illinois Municipal Code is amended by
15changing Section 8-11-1.1 as follows:
 
16    (65 ILCS 5/8-11-1.1)  (from Ch. 24, par. 8-11-1.1)
17    Sec. 8-11-1.1. Non-home rule municipalities; imposition of
18taxes.
19    (a) The corporate authorities of a non-home rule
20municipality may, upon approval of the electors of the
21municipality pursuant to subsection (b) of this Section, impose
22by ordinance or resolution the tax authorized in Sections
238-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act.

 

 

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1    (b) The corporate authorities of the municipality may by
2ordinance or resolution call for the submission to the electors
3of the municipality the question of whether the municipality
4shall impose such tax. Such question shall be certified by the
5municipal clerk to the election authority in accordance with
6Section 28-5 of the Election Code and shall be in a form in
7accordance with Section 16-7 of the Election Code.
8    Notwithstanding any provision of law to the contrary, if
9the proceeds of the tax may be used for municipal operations
10pursuant to Section 8-11-1.3, 8-11-1.4, or 8-11-1.5, then the
11election authority must submit the question in substantially
12the following form:
13        Shall the corporate authorities of the municipality be
14    authorized to levy a tax at a rate of (rate)% for
15    expenditures on municipal operations, expenditures on
16    public infrastructure, or property tax relief?
17    If a majority of the electors in the municipality voting
18upon the question vote in the affirmative, such tax shall be
19imposed.
20    Until January 1, 1992, an An ordinance or resolution
21imposing the tax of not more than 1% hereunder or discontinuing
22the same shall be adopted and a certified copy thereof,
23together with a certification that the ordinance or resolution
24received referendum approval in the case of the imposition of
25such tax, filed with the Department of Revenue, on or before
26the first day of June, whereupon the Department shall proceed

 

 

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1to administer and enforce the additional tax or to discontinue
2the tax, as the case may be, as of the first day of September
3next following such adoption and filing.
4    Beginning January 1, 1992 and through December 31, 1992, an
5ordinance or resolution imposing or discontinuing the tax
6hereunder shall be adopted and a certified copy thereof filed
7with the Department on or before the first day of July,
8whereupon the Department shall proceed to administer and
9enforce this Section as of the first day of October next
10following such adoption and filing.
11    Beginning January 1, 1993, and through September 30, 2002,
12an ordinance or resolution imposing or discontinuing the tax
13hereunder shall be adopted and a certified copy thereof filed
14with the Department on or before the first day of October,
15whereupon the Department shall proceed to administer and
16enforce this Section as of the first day of January next
17following such adoption and filing.
18    Beginning October 1, 2002, and through December 31, 2013,
19an ordinance or resolution imposing or discontinuing the tax
20under this Section or effecting a change in the rate of tax
21must either (i) be adopted and a certified copy of the
22ordinance or resolution filed with the Department on or before
23the first day of April, whereupon the Department shall proceed
24to administer and enforce this Section as of the first day of
25July next following the adoption and filing; or (ii) be adopted
26and a certified copy of the ordinance or resolution filed with

 

 

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1the Department on or before the first day of October, whereupon
2the Department shall proceed to administer and enforce this
3Section as of the first day of January next following the
4adoption and filing.
5    Beginning January 1, 2014, if an ordinance or resolution
6imposing the tax under this Section, discontinuing the tax
7under this Section, or effecting a change in the rate of tax
8under this Section is adopted, a certified copy thereof,
9together with a certification that the ordinance or resolution
10received referendum approval in the case of the imposition of
11or increase in the rate of such tax, shall be filed with the
12Department of Revenue, either (i) on or before the first day of
13May, whereupon the Department shall proceed to administer and
14enforce this Section as of the first day of July next following
15the adoption and filing; or (ii) on or before the first day of
16October, whereupon the Department shall proceed to administer
17and enforce this Section as of the first day of January next
18following the adoption and filing.
19    Notwithstanding any provision in this Section to the
20contrary, if, in a non-home rule municipality with more than
21150,000 but fewer than 200,000 inhabitants, as determined by
22the last preceding federal decennial census, an ordinance or
23resolution under this Section imposes or discontinues a tax or
24changes the tax rate as of July 1, 2007, then that ordinance or
25resolution, together with a certification that the ordinance or
26resolution received referendum approval in the case of the

 

 

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1imposition of the tax, must be adopted and a certified copy of
2that ordinance or resolution must be filed with the Department
3on or before May 15, 2007, whereupon the Department shall
4proceed to administer and enforce this Section as of July 1,
52007.
6    Notwithstanding any provision in this Section to the
7contrary, if, in a non-home rule municipality with more than
86,500 but fewer than 7,000 inhabitants, as determined by the
9last preceding federal decennial census, an ordinance or
10resolution under this Section imposes or discontinues a tax or
11changes the tax rate on or before May 20, 2009, then that
12ordinance or resolution, together with a certification that the
13ordinance or resolution received referendum approval in the
14case of the imposition of the tax, must be adopted and a
15certified copy of that ordinance or resolution must be filed
16with the Department on or before May 20, 2009, whereupon the
17Department shall proceed to administer and enforce this Section
18as of July 1, 2009.
19    A non-home rule municipality may file a certified copy of
20an ordinance or resolution, with a certification that the
21ordinance or resolution received referendum approval in the
22case of the imposition of the tax, with the Department of
23Revenue, as required under this Section, only after October 2,
242000.
25    The tax authorized by this Section may not be more than 1%
26and may be imposed only in 1/4% increments.

 

 

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1(Source: P.A. 95-8, eff. 6-29-07; 96-10, eff. 5-20-09; 96-1057,
2eff. 7-14-10.)
 
3    (65 ILCS 5/8-11-9 rep.)
4    Section 50. The Illinois Municipal Code is amended by
5repealing Section 8-11-9.
 
6    Section 55. The Environmental Protection Act is amended by
7changing Section 55.8 as follows:
 
8    (415 ILCS 5/55.8)  (from Ch. 111 1/2, par. 1055.8)
9    Sec. 55.8. Tire retailers.
10    (a) Any person selling new or used tires at retail or
11offering new or used tires for retail sale in this State shall:
12        (1) beginning on June 20, 2003 (the effective date of
13    Public Act 93-32), collect from retail customers a fee of
14    $2 per new or used tire sold and delivered in this State,
15    to be paid to the Department of Revenue and deposited into
16    the Used Tire Management Fund, less a collection allowance
17    of 10 cents per tire to be retained by the retail seller
18    and a collection allowance of 10 cents per tire to be
19    retained by the Department of Revenue and paid into the
20    General Revenue Fund; the collection allowance for retail
21    sellers, however, shall be allowed only if the return is
22    filed timely and only for the amount that is paid timely in
23    accordance with this Title XIV;

 

 

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1        (1.5) beginning on July 1, 2003, collect from retail
2    customers an additional 50 cents per new or used tire sold
3    and delivered in this State; the money collected from this
4    fee shall be deposited into the Emergency Public Health
5    Fund;
6        (2) accept for recycling used tires from customers, at
7    the point of transfer, in a quantity equal to the number of
8    new tires purchased; and
9        (3) post in a conspicuous place a written notice at
10    least 8.5 by 11 inches in size that includes the universal
11    recycling symbol and the following statements: "DO NOT put
12    used tires in the trash."; "Recycle your used tires."; and
13    "State law requires us to accept used tires for recycling,
14    in exchange for new tires purchased.".
15    (b) A person who accepts used tires for recycling under
16subsection (a) shall not allow the tires to accumulate for
17periods of more than 90 days.
18    (c) The requirements of subsection (a) of this Section do
19not apply to mail order sales nor shall the retail sale of a
20motor vehicle be considered to be the sale of tires at retail
21or offering of tires for retail sale. Instead of filing
22returns, retailers of tires may remit the tire user fee of
23$1.00 per tire to their suppliers of tires if the supplier of
24tires is a registered retailer of tires and agrees or otherwise
25arranges to collect and remit the tire fee to the Department of
26Revenue, notwithstanding the fact that the sale of the tire is

 

 

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1a sale for resale and not a sale at retail. A tire supplier who
2enters into such an arrangement with a tire retailer shall be
3liable for the tax on all tires sold to the tire retailer and
4must (i) provide the tire retailer with a receipt that
5separately reflects the tire tax collected from the retailer on
6each transaction and (ii) accept used tires for recycling from
7the retailer's customers. The tire supplier shall be entitled
8to the collection allowance of 10 cents per tire, but only if
9the return is filed timely and only for the amount that is paid
10timely in accordance with this Title XIV.
11    The retailer of the tires must maintain in its books and
12records evidence that the appropriate fee was paid to the tire
13supplier and that the tire supplier has agreed to remit the fee
14to the Department of Revenue for each tire sold by the
15retailer. Otherwise, the tire retailer shall be directly liable
16for the fee on all tires sold at retail. Tire retailers paying
17the fee to their suppliers are not entitled to the collection
18allowance of 10 cents per tire.
19    (d) The requirements of subsection (a) of this Section
20shall apply exclusively to tires to be used for vehicles
21defined in Section 1-217 of the Illinois Vehicle Code, aircraft
22tires, special mobile equipment, and implements of husbandry.
23    (e) The requirements of paragraph (1) of subsection (a) do
24not apply to the sale of reprocessed tires. For purposes of
25this Section, "reprocessed tire" means a used tire that has
26been recapped, retreaded, or regrooved and that has not been

 

 

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1placed on a vehicle wheel rim.
2(Source: P.A. 95-49, eff. 8-10-07; 95-331, eff. 8-21-07;
395-876, eff. 8-21-08; 96-520, eff. 8-14-09.)
 
4    Section 99. Effective date. This Act takes effect July 1,
52013.