State of Illinois
90th General Assembly
Legislation

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[ Introduced ][ Enrolled ][ Senate Amendment 001 ]

90_SB0374eng

      35 ILCS 105/3-5           from Ch. 120, par. 439.3-5
      35 ILCS 120/2-5           from Ch. 120, par. 441-5
      55 ILCS 5/5-1006          from Ch. 34, par. 5-1006
      55 ILCS 5/5-1006.5
      65 ILCS 5/8-11-1          from Ch. 24, par. 8-11-1
      65 ILCS 5/8-11-1.3        from Ch. 24, par. 8-11-1.3
      65 ILCS 5/8-11-1.6
          Amends the Use Tax Act,  the  Retailers'  Occupation  Tax
      Act,  the  Counties  Code,  and  the Illinois Municipal Code.
      Exempts  qualified  technological  equipment  as  defined  in
      Section 168(c)(3)(B)(iv) of the Internal  Revenue  Code  that
      was  purchased  by a lessor who has elected to pay retailers'
      occupation tax based on the lessor's gross receipts from  the
      lease  of  the equipment in this State to a lessee for his or
      her use and not for the purpose of sublease.  Provides  that,
      for purposes of determining the local governmental unit whose
      tax  is  applicable,  a  retail sale by a lessor is a sale at
      retail at the place where leased tangible  personal  property
      is located.  Effective immediately.
                                                    LRB9002207DNmbB
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 1        AN ACT concerning occupation and use taxes.
 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:
 4        Section 5.  The  Use  Tax  Act  is  amended  by  changing
 5    Section 3-5 as follows:
 6        (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
 7        Sec.  3-5.   Exemptions.   Use  of the following tangible
 8    personal property is exempt from the tax imposed by this Act:
 9        (1)  Personal  property  purchased  from  a  corporation,
10    society,    association,    foundation,    institution,    or
11    organization, other than a limited liability company, that is
12    organized and operated as a not-for-profit service enterprise
13    for the benefit of persons 65 years of age or  older  if  the
14    personal property was not purchased by the enterprise for the
15    purpose of resale by the enterprise.
16        (2)  Personal  property  purchased  by  a  not-for-profit
17    Illinois  county  fair  association  for  use  in conducting,
18    operating, or promoting the county fair.
19        (3)  Personal  property  purchased  by  a  not-for-profit
20    music or dramatic  arts  organization  that  establishes,  by
21    proof  required  by  the  Department  by  rule,  that  it has
22    received an exemption under Section 501(c)(3) of the Internal
23    Revenue Code and that  is  organized  and  operated  for  the
24    presentation  of  live  public  performances  of  musical  or
25    theatrical works on a regular basis.
26        (4)  Personal  property purchased by a governmental body,
27    by  a  corporation,  society,  association,  foundation,   or
28    institution    organized   and   operated   exclusively   for
29    charitable, religious,  or  educational  purposes,  or  by  a
30    not-for-profit corporation, society, association, foundation,
31    institution, or organization that has no compensated officers
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 1    or employees and that is organized and operated primarily for
 2    the recreation of persons 55 years of age or older. A limited
 3    liability  company  may  qualify for the exemption under this
 4    paragraph only if the limited liability company is  organized
 5    and  operated  exclusively  for  educational purposes. On and
 6    after July 1, 1987, however, no entity otherwise eligible for
 7    this exemption shall make tax-free purchases unless it has an
 8    active  exemption  identification  number   issued   by   the
 9    Department.
10        (5)  A passenger car that is a replacement vehicle to the
11    extent  that  the purchase price of the car is subject to the
12    Replacement Vehicle Tax.
13        (6)  Graphic  arts  machinery  and  equipment,  including
14    repair  and  replacement  parts,  both  new  and  used,   and
15    including  that  manufactured  on special order, certified by
16    the  purchaser  to  be  used  primarily  for   graphic   arts
17    production,  and  including machinery and equipment purchased
18    for lease.
19        (7)  Farm chemicals.
20        (8)  Legal  tender,  currency,  medallions,  or  gold  or
21    silver  coinage  issued  by  the  State  of   Illinois,   the
22    government of the United States of America, or the government
23    of any foreign country, and bullion.
24        (9)  Personal property purchased from a teacher-sponsored
25    student   organization   affiliated  with  an  elementary  or
26    secondary school located in Illinois.
27        (10)  A motor vehicle of  the  first  division,  a  motor
28    vehicle of the second division that is a self-contained motor
29    vehicle  designed  or permanently converted to provide living
30    quarters for  recreational,  camping,  or  travel  use,  with
31    direct  walk through to the living quarters from the driver's
32    seat, or a motor vehicle of the second division  that  is  of
33    the  van configuration designed for the transportation of not
34    less than 7 nor  more  than  16  passengers,  as  defined  in
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 1    Section  1-146 of the Illinois Vehicle Code, that is used for
 2    automobile renting, as  defined  in  the  Automobile  Renting
 3    Occupation and Use Tax Act.
 4        (11)  Farm  machinery  and  equipment, both new and used,
 5    including that manufactured on special  order,  certified  by
 6    the purchaser to be used primarily for production agriculture
 7    or   State   or   federal  agricultural  programs,  including
 8    individual replacement parts for the machinery and equipment,
 9    and including machinery and equipment  purchased  for  lease,
10    but  excluding motor vehicles required to be registered under
11    the Illinois Vehicle Code.
12        (12)  Fuel and petroleum products sold to or used  by  an
13    air  common  carrier, certified by the carrier to be used for
14    consumption, shipment, or  storage  in  the  conduct  of  its
15    business  as an air common carrier, for a flight destined for
16    or returning from a location or locations outside the  United
17    States  without  regard  to  previous  or subsequent domestic
18    stopovers.
19        (13)  Proceeds of mandatory  service  charges  separately
20    stated  on  customers' bills for the purchase and consumption
21    of food and beverages purchased at retail from a retailer, to
22    the extent that the proceeds of the  service  charge  are  in
23    fact  turned  over as tips or as a substitute for tips to the
24    employees who participate  directly  in  preparing,  serving,
25    hosting  or  cleaning  up  the food or beverage function with
26    respect to which the service charge is imposed.
27        (14)  Oil field  exploration,  drilling,  and  production
28    equipment, including (i) rigs and parts of rigs, rotary rigs,
29    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
30    goods, including casing and drill strings,  (iii)  pumps  and
31    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
32    individual  replacement  part  for  oil  field   exploration,
33    drilling,  and  production  equipment, and (vi) machinery and
34    equipment purchased for lease; but excluding  motor  vehicles
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 1    required to be registered under the Illinois Vehicle Code.
 2        (15)  Photoprocessing  machinery and equipment, including
 3    repair and replacement parts, both new  and  used,  including
 4    that   manufactured   on  special  order,  certified  by  the
 5    purchaser to  be  used  primarily  for  photoprocessing,  and
 6    including  photoprocessing  machinery and equipment purchased
 7    for lease.
 8        (16)  Coal  exploration,  mining,   offhighway   hauling,
 9    processing, maintenance, and reclamation equipment, including
10    replacement  parts  and  equipment,  and  including equipment
11    purchased for lease, but excluding motor vehicles required to
12    be registered under the Illinois Vehicle Code.
13        (17)  Distillation machinery and  equipment,  sold  as  a
14    unit   or  kit,  assembled  or  installed  by  the  retailer,
15    certified by the user to be used only for the  production  of
16    ethyl alcohol that will be used for consumption as motor fuel
17    or  as  a component of motor fuel for the personal use of the
18    user, and not subject to sale or resale.
19        (18)  Manufacturing   and   assembling   machinery    and
20    equipment  used  primarily in the process of manufacturing or
21    assembling tangible personal property for wholesale or retail
22    sale or lease, whether that sale or lease is made directly by
23    the  manufacturer  or  by  some  other  person,  whether  the
24    materials used in the process are owned by  the  manufacturer
25    or  some  other person, or whether that sale or lease is made
26    apart from or as an incident to the seller's engaging in  the
27    service  occupation of producing machines, tools, dies, jigs,
28    patterns, gauges, or other similar  items  of  no  commercial
29    value on special order for a particular purchaser.
30        (19)  Personal  property  delivered  to  a  purchaser  or
31    purchaser's donee inside Illinois when the purchase order for
32    that  personal  property  was  received  by a florist located
33    outside Illinois who has a florist  located  inside  Illinois
34    deliver the personal property.
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 1        (20)  Semen used for artificial insemination of livestock
 2    for direct agricultural production.
 3        (21)  Horses, or interests in horses, registered with and
 4    meeting  the  requirements  of  any of the Arabian Horse Club
 5    Registry of America, Appaloosa Horse Club,  American  Quarter
 6    Horse  Association,  United  States  Trotting Association, or
 7    Jockey Club, as appropriate, used for purposes of breeding or
 8    racing for prizes.
 9        (22)  Computers and communications equipment utilized for
10    any hospital purpose and equipment  used  in  the  diagnosis,
11    analysis,  or  treatment  of hospital patients purchased by a
12    lessor who leases the equipment, under a lease of one year or
13    longer executed or in effect at the  time  the  lessor  would
14    otherwise  be  subject  to  the tax imposed by this Act, to a
15    hospital  that  has  been  issued  an  active  tax  exemption
16    identification  number  by the Department under Section 1g of
17    the Retailers' Occupation  Tax  Act.   If  the  equipment  is
18    leased  in  a manner that does not qualify for this exemption
19    or is used in any other non-exempt manner, the  lessor  shall
20    be  liable  for the tax imposed under this Act or the Service
21    Use Tax Act, as the case may be, based  on  the  fair  market
22    value  of  the  property  at  the time the non-qualifying use
23    occurs.  No lessor shall collect or  attempt  to  collect  an
24    amount  (however  designated) that purports to reimburse that
25    lessor for the tax imposed by this Act or the Service Use Tax
26    Act, as the case may be, if the tax has not been paid by  the
27    lessor.  If a lessor improperly collects any such amount from
28    the  lessee,  the  lessee shall have a legal right to claim a
29    refund of that amount from the  lessor.   If,  however,  that
30    amount  is  not  refunded  to  the lessee for any reason, the
31    lessor is liable to pay that amount to the Department.
32        (23)  Personal property purchased by a lessor who  leases
33    the  property,  under a lease of  one year or longer executed
34    or in effect at  the  time  the  lessor  would  otherwise  be
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 1    subject  to  the  tax  imposed by this Act, to a governmental
 2    body that has been  issued  an  active  sales  tax  exemption
 3    identification  number  by the Department under Section 1g of
 4    the Retailers' Occupation Tax Act. If the property is  leased
 5    in  a manner that does not qualify for this exemption or used
 6    in any other non-exempt manner, the lessor  shall  be  liable
 7    for  the  tax  imposed  under this Act or the Service Use Tax
 8    Act, as the case may be, based on the fair  market  value  of
 9    the  property  at the time the non-qualifying use occurs.  No
10    lessor shall collect or attempt to collect an amount (however
11    designated) that purports to reimburse that  lessor  for  the
12    tax  imposed  by  this Act or the Service Use Tax Act, as the
13    case may be, if the tax has not been paid by the lessor.   If
14    a lessor improperly collects any such amount from the lessee,
15    the lessee shall have a legal right to claim a refund of that
16    amount  from  the  lessor.   If,  however, that amount is not
17    refunded to the lessee for any reason, the lessor  is  liable
18    to pay that amount to the Department.
19        (24)  Beginning  with  taxable  years  ending on or after
20    December 31, 1995 and ending with taxable years ending on  or
21    before  December  31, 2004, personal property that is donated
22    for disaster relief to  be  used  in  a  State  or  federally
23    declared disaster area in Illinois or bordering Illinois by a
24    manufacturer  or retailer that is registered in this State to
25    a   corporation,   society,   association,   foundation,   or
26    institution that  has  been  issued  a  sales  tax  exemption
27    identification  number by the Department that assists victims
28    of the disaster who reside within the declared disaster area.
29        (25)  Beginning with taxable years  ending  on  or  after
30    December  31, 1995 and ending with taxable years ending on or
31    before December 31, 2004, personal property that is  used  in
32    the  performance  of  infrastructure  repairs  in this State,
33    including but not limited to  municipal  roads  and  streets,
34    access  roads,  bridges,  sidewalks,  waste disposal systems,
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 1    water and  sewer  line  extensions,  water  distribution  and
 2    purification  facilities,  storm water drainage and retention
 3    facilities, and sewage treatment facilities, resulting from a
 4    State or federally declared disaster in Illinois or bordering
 5    Illinois  when  such  repairs  are  initiated  on  facilities
 6    located in the declared disaster area within 6  months  after
 7    the disaster.
 8        (26)  Qualified  technological  equipment  as  defined in
 9    Section 168(i)(2) of the Internal Revenue Code purchased by a
10    lessor  who  has  elected,  under  Section  2-5(32)  of   the
11    Retailers'  Occupation  Tax Act, to pay retailers' occupation
12    tax based on the lessor's gross receipts from  the  lease  of
13    the  equipment  in  this State to a lessee for his or her use
14    and not for the purpose of sublease.   This  provision  shall
15    not be construed to impose any liability upon a lessee.
16        The exemption granted by this Section shall be limited to
17    50%  of  the  tax  that  would  otherwise  have  been due for
18    property delivered to the lessor in this State before July 1,
19    1998; and 75% of the tax that would otherwise have  been  due
20    for property delivered to the lessor in this State during the
21    period of July 1, 1998 through June 30, 1999.  The provisions
22    of  this  paragraph  shall  be  exempt from the provisions of
23    Section 3-90.
24    (Source: P.A. 88-337; 88-480; 88-547; 88-670,  eff.  12-2-94;
25    89-16,  eff.  5-30-95;  89-115,  eff.  1-1-96;  89-349,  eff.
26    8-17-95;  89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
27    eff. 8-9-96; revised 8-21-96.)
28        Section 10.  The Retailers' Occupation Tax Act is amended
29    by changing Section 2-5 as follows:
30        (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
31        Sec. 2-5.  Exemptions.  Gross receipts from proceeds from
32    the sale of the  following  tangible  personal  property  are
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 1    exempt from the tax imposed by this Act:
 2        (1)  Farm chemicals.
 3        (2)  Farm  machinery  and  equipment,  both new and used,
 4    including that manufactured on special  order,  certified  by
 5    the purchaser to be used primarily for production agriculture
 6    or   State   or   federal  agricultural  programs,  including
 7    individual replacement parts for the machinery and equipment,
 8    and including machinery and equipment  purchased  for  lease,
 9    but  excluding motor vehicles required to be registered under
10    the Illinois Vehicle Code.
11        (3)  Distillation machinery and equipment, sold as a unit
12    or kit, assembled or installed by the retailer, certified  by
13    the  user to be used only for the production of ethyl alcohol
14    that will be used for consumption  as  motor  fuel  or  as  a
15    component of motor fuel for the personal use of the user, and
16    not subject to sale or resale.
17        (4)  Graphic  arts  machinery  and  equipment,  including
18    repair   and  replacement  parts,  both  new  and  used,  and
19    including that manufactured on special order or purchased for
20    lease, certified by the purchaser to be  used  primarily  for
21    graphic arts production.
22        (5)  A  motor  vehicle  of  the  first  division, a motor
23    vehicle of the second division that is a self-contained motor
24    vehicle designed or permanently converted to  provide  living
25    quarters  for  recreational,  camping,  or  travel  use, with
26    direct walk through access to the living  quarters  from  the
27    driver's seat, or a motor vehicle of the second division that
28    is  of  the van configuration designed for the transportation
29    of not less than 7 nor more than 16 passengers, as defined in
30    Section 1-146 of the Illinois Vehicle Code, that is used  for
31    automobile  renting,  as  defined  in  the Automobile Renting
32    Occupation and Use Tax Act.
33        (6)  Personal  property  sold  by   a   teacher-sponsored
34    student   organization   affiliated  with  an  elementary  or
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 1    secondary school located in Illinois.
 2        (7)  Proceeds of that portion of the selling price  of  a
 3    passenger car the sale of which is subject to the Replacement
 4    Vehicle Tax.
 5        (8)  Personal  property  sold  to an Illinois county fair
 6    association for use in conducting,  operating,  or  promoting
 7    the county fair.
 8        (9)  Personal  property sold to a not-for-profit music or
 9    dramatic  arts  organization  that  establishes,   by   proof
10    required  by  the Department by rule, that it has received an
11    exemption under Section 501(c) (3) of  the  Internal  Revenue
12    Code  and that is organized and operated for the presentation
13    of live public performances of musical or theatrical works on
14    a regular basis.
15        (10)  Personal property sold by a  corporation,  society,
16    association,  foundation, institution, or organization, other
17    than a limited  liability  company,  that  is  organized  and
18    operated  as  a  not-for-profit  service  enterprise  for the
19    benefit of persons 65 years of age or older if  the  personal
20    property  was not purchased by the enterprise for the purpose
21    of resale by the enterprise.
22        (11)  Personal property sold to a governmental body, to a
23    corporation, society, association, foundation, or institution
24    organized and operated exclusively for charitable, religious,
25    or educational purposes, or to a not-for-profit  corporation,
26    society,    association,    foundation,    institution,    or
27    organization  that  has  no compensated officers or employees
28    and  that  is  organized  and  operated  primarily  for   the
29    recreation  of  persons  55  years of age or older. A limited
30    liability company may qualify for the  exemption  under  this
31    paragraph  only if the limited liability company is organized
32    and operated exclusively for  educational  purposes.  On  and
33    after July 1, 1987, however, no entity otherwise eligible for
34    this exemption shall make tax-free purchases unless it has an
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 1    active identification number issued by the Department.
 2        (12)  Personal  property  sold to interstate carriers for
 3    hire for use as rolling stock moving in  interstate  commerce
 4    or  to lessors under leases of one year or longer executed or
 5    in effect at the time of purchase by interstate carriers  for
 6    hire  for  use as rolling stock moving in interstate commerce
 7    and equipment  operated  by  a  telecommunications  provider,
 8    licensed  as  a  common carrier by the Federal Communications
 9    Commission, which is permanently installed in or  affixed  to
10    aircraft moving in interstate commerce.
11        (13)  Proceeds from sales to owners, lessors, or shippers
12    of  tangible personal property that is utilized by interstate
13    carriers  for  hire  for  use  as  rolling  stock  moving  in
14    interstate   commerce   and   equipment   operated    by    a
15    telecommunications  provider, licensed as a common carrier by
16    the Federal Communications Commission, which  is  permanently
17    installed  in  or  affixed  to  aircraft moving in interstate
18    commerce.
19        (14)  Machinery and equipment that will be  used  by  the
20    purchaser,  or  a  lessee  of the purchaser, primarily in the
21    process of  manufacturing  or  assembling  tangible  personal
22    property  for  wholesale or retail sale or lease, whether the
23    sale or lease is made directly by the manufacturer or by some
24    other person, whether the materials used in the  process  are
25    owned  by  the  manufacturer or some other person, or whether
26    the sale or lease is made apart from or as an incident to the
27    seller's engaging in  the  service  occupation  of  producing
28    machines,  tools,  dies,  jigs,  patterns,  gauges,  or other
29    similar items of no commercial value on special order  for  a
30    particular purchaser.
31        (15)  Proceeds  of  mandatory  service charges separately
32    stated on customers' bills for purchase  and  consumption  of
33    food  and  beverages,  to the extent that the proceeds of the
34    service charge are in fact  turned  over  as  tips  or  as  a
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 1    substitute for tips to the employees who participate directly
 2    in  preparing,  serving,  hosting  or cleaning up the food or
 3    beverage function with respect to which the service charge is
 4    imposed.
 5        (16)  Petroleum products  sold  to  a  purchaser  if  the
 6    seller  is prohibited by federal law from charging tax to the
 7    purchaser.
 8        (17)  Tangible personal property sold to a common carrier
 9    by rail that receives the physical possession of the property
10    in Illinois and that transports the property, or shares  with
11    another common carrier in the transportation of the property,
12    out  of Illinois on a standard uniform bill of lading showing
13    the seller of the property as the shipper or consignor of the
14    property to a destination outside Illinois, for  use  outside
15    Illinois.
16        (18)  Legal  tender,  currency,  medallions,  or  gold or
17    silver  coinage  issued  by  the  State  of   Illinois,   the
18    government of the United States of America, or the government
19    of any foreign country, and bullion.
20        (19)  Oil  field  exploration,  drilling,  and production
21    equipment, including (i) rigs and parts of rigs, rotary rigs,
22    cable tool rigs, and workover rigs,  (ii)  pipe  and  tubular
23    goods,  including  casing  and drill strings, (iii) pumps and
24    pump-jack units, (iv) storage tanks and flow lines,  (v)  any
25    individual   replacement  part  for  oil  field  exploration,
26    drilling, and production equipment, and  (vi)  machinery  and
27    equipment  purchased  for lease; but excluding motor vehicles
28    required to be registered under the Illinois Vehicle Code.
29        (20)  Photoprocessing machinery and equipment,  including
30    repair  and  replacement  parts, both new and used, including
31    that  manufactured  on  special  order,  certified   by   the
32    purchaser  to  be  used  primarily  for  photoprocessing, and
33    including photoprocessing machinery and  equipment  purchased
34    for lease.
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 1        (21)  Coal   exploration,   mining,  offhighway  hauling,
 2    processing, maintenance, and reclamation equipment, including
 3    replacement parts  and  equipment,  and  including  equipment
 4    purchased for lease, but excluding motor vehicles required to
 5    be registered under the Illinois Vehicle Code.
 6        (22)  Fuel  and  petroleum products sold to or used by an
 7    air  carrier,  certified  by  the  carrier  to  be  used  for
 8    consumption, shipment, or  storage  in  the  conduct  of  its
 9    business  as an air common carrier, for a flight destined for
10    or returning from a location or locations outside the  United
11    States  without  regard  to  previous  or subsequent domestic
12    stopovers.
13        (23)  A  transaction  in  which  the  purchase  order  is
14    received by a florist who is located  outside  Illinois,  but
15    who has a florist located in Illinois deliver the property to
16    the purchaser or the purchaser's donee in Illinois.
17        (24)  Fuel  consumed  or  used in the operation of ships,
18    barges, or vessels that are used  primarily  in  or  for  the
19    transportation  of  property or the conveyance of persons for
20    hire on rivers  bordering  on  this  State  if  the  fuel  is
21    delivered  by  the  seller to the purchaser's barge, ship, or
22    vessel while it is afloat upon that bordering river.
23        (25)  A motor vehicle sold in this State to a nonresident
24    even though the motor vehicle is delivered to the nonresident
25    in this State, if the motor vehicle is not to  be  titled  in
26    this  State, and if a driveaway decal permit is issued to the
27    motor vehicle as provided in Section 3-603  of  the  Illinois
28    Vehicle  Code  or  if  the  nonresident purchaser has vehicle
29    registration plates to transfer to  the  motor  vehicle  upon
30    returning  to  his  or  her  home state.  The issuance of the
31    driveaway   decal   permit   or   having   the   out-of-state
32    registration plates to be transferred is prima facie evidence
33    that the motor vehicle will not be titled in this State.
34        (26)  Semen used for artificial insemination of livestock
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 1    for direct agricultural production.
 2        (27)  Horses, or interests in horses, registered with and
 3    meeting the requirements of any of  the  Arabian  Horse  Club
 4    Registry  of  America, Appaloosa Horse Club, American Quarter
 5    Horse Association, United  States  Trotting  Association,  or
 6    Jockey Club, as appropriate, used for purposes of breeding or
 7    racing for prizes.
 8        (28)   Computers  and  communications  equipment utilized
 9    for any hospital purpose and equipment used in the diagnosis,
10    analysis, or treatment of hospital patients sold to a  lessor
11    who leases the equipment, under a lease of one year or longer
12    executed  or  in  effect  at  the  time of the purchase, to a
13    hospital  that  has  been  issued  an  active  tax  exemption
14    identification number by the Department under Section  1g  of
15    this Act.
16        (29)   Personal  property sold to a lessor who leases the
17    property, under a lease of one year or longer executed or  in
18    effect  at  the  time of the purchase, to a governmental body
19    that has been issued an active tax  exemption  identification
20    number by the Department under Section 1g of this Act.
21        (30)   Beginning  with  taxable  years ending on or after
22    December 31, 1995 and ending with taxable years ending on  or
23    before  December  31, 2004, personal property that is donated
24    for disaster relief to  be  used  in  a  State  or  federally
25    declared disaster area in Illinois or bordering Illinois by a
26    manufacturer  or retailer that is registered in this State to
27    a   corporation,   society,   association,   foundation,   or
28    institution that  has  been  issued  a  sales  tax  exemption
29    identification  number by the Department that assists victims
30    of the disaster who reside within the declared disaster area.
31        (31)   Beginning with taxable years ending  on  or  after
32    December  31, 1995 and ending with taxable years ending on or
33    before December 31, 2004, personal property that is  used  in
34    the  performance  of  infrastructure  repairs  in this State,
SB374 Engrossed             -14-              LRB9002207DNmbB
 1    including but not limited to  municipal  roads  and  streets,
 2    access  roads,  bridges,  sidewalks,  waste disposal systems,
 3    water and  sewer  line  extensions,  water  distribution  and
 4    purification  facilities,  storm water drainage and retention
 5    facilities, and sewage treatment facilities, resulting from a
 6    State or federally declared disaster in Illinois or bordering
 7    Illinois  when  such  repairs  are  initiated  on  facilities
 8    located in the declared disaster area within 6  months  after
 9    the disaster.
10        (32)  Qualified  technological  equipment  as  defined in
11    Section 168(i)(2) of the Internal  Revenue  Code  sold  to  a
12    lessor  who has elected to pay the tax imposed under this Act
13    based on the lessor's gross receipts from the  lease  of  the
14    equipment  in  this  State to a lessee for his or her use and
15    not for the purpose of sublease.  This election may  be  made
16    by  the issuance of an exemption certificate to the seller of
17    the equipment indicating  the  lessor's  registration  number
18    under  this  Act and certifying that the lessor elects to pay
19    retailers' occupation tax measured by the gross receipts from
20    the lease of that equipment.  If this election is  made,  the
21    gross  receipts  of  each  lease payment will be deemed to be
22    receipts from sales at retail for purposes of this Act.
23        As used in this Section, "lease" means  an  operating  or
24    true  lease.   An  operating  or  true lease is a lease under
25    which,  for  federal  income  tax  purposes,  the  lessor  is
26    considered to be the  owner  of  the  leased  property.   For
27    federal income tax purposes, a lessor is considered to be the
28    owner  of  the property if the lessor is permitted to claim a
29    depreciation expense deduction for the property.  The  amount
30    of  retailers' occupation tax imposed under this Act shall be
31    reduced by an amount equal to the  percentage  limitation  of
32    the  exemption  for  use tax granted under Section 3-5(26) of
33    the Use Tax Act, for property subject to the limitation.  The
34    gross receipts from the sale or lease of property  for  which
SB374 Engrossed             -15-              LRB9002207DNmbB
 1    this  election  has  been  made  shall  be subject to the tax
 2    imposed by this Act on any subsequent sale or lease  in  this
 3    State.  Lessors shall be subject to the tax imposed under the
 4    Use  Tax  Act  based on the fair market value of any property
 5    returned to the lessor at the termination of a lease  if  the
 6    property  is used for any purpose other than the further sale
 7    or lease of the property. The provisions  of  this  paragraph
 8    shall be exempt from the provisions of Section 2-70.
 9    (Source: P.A.  88-337;  88-480; 88-547; 88-670, eff. 12-2-94;
10    89-16,  eff.  5-30-95;  89-115,  eff.  1-1-96;  89-349,  eff.
11    8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96;  89-626,
12    eff. 8-9-96; revised 8-21-96.)
13        Section  15.  The  Counties  Code  is amended by changing
14    Sections 5-1006 and 5-1006.5 as follows:
15        (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
16        Sec. 5-1006.  Home Rule County Retailers' Occupation Tax.
17    Any county that is a home rule unit may impose a tax upon all
18    persons engaged in the business of selling tangible  personal
19    property,  other  than  an item of tangible personal property
20    titled  or  registered  with  an  agency  of   this   State's
21    government,  at  retail  in  the county on the gross receipts
22    from such sales made in the course  of  their  business.   If
23    imposed,  this  tax shall only be imposed in 1/4% increments.
24    On and after September 1, 1991, this additional tax  may  not
25    be  imposed  on the sales of food for human consumption which
26    is to be consumed off the premises where it  is  sold  (other
27    than alcoholic beverages, soft drinks and food which has been
28    prepared  for  immediate  consumption)  and  prescription and
29    nonprescription  medicines,  drugs,  medical  appliances  and
30    insulin, urine testing materials, syringes and  needles  used
31    by  diabetics. The tax imposed by a home rule county pursuant
32    to this Section and all civil penalties that may be  assessed
SB374 Engrossed             -16-              LRB9002207DNmbB
 1    as an incident thereof shall be collected and enforced by the
 2    State Department of Revenue.  The certificate of registration
 3    that  is  issued  by  the  Department to a retailer under the
 4    Retailers' Occupation Tax Act shall permit  the  retailer  to
 5    engage  in  a business that is taxable under any ordinance or
 6    resolution  enacted  pursuant   to   this   Section   without
 7    registering   separately   with  the  Department  under  such
 8    ordinance  or  resolution  or  under   this   Section.    The
 9    Department  shall  have  full power to administer and enforce
10    this  Section;  to  collect  all  taxes  and  penalties   due
11    hereunder;  to dispose of taxes and penalties so collected in
12    the manner hereinafter provided; and to determine all  rights
13    to  credit  memoranda  arising  on  account  of the erroneous
14    payment of tax or penalty hereunder.  In  the  administration
15    of,  and  compliance  with,  this Section, the Department and
16    persons who are subject to this Section shall have  the  same
17    rights,  remedies, privileges, immunities, powers and duties,
18    and  be  subject  to  the  same   conditions,   restrictions,
19    limitations,  penalties  and definitions of terms, and employ
20    the same modes of procedure, as are prescribed in Sections 1,
21    1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in  respect  to
22    all  provisions therein other than the State rate of tax), 4,
23    5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b,
24    6c, 7, 8, 9, 10, 11, 12 and 13 of the  Retailers'  Occupation
25    Tax  Act  and Section 3-7 of the Uniform Penalty and Interest
26    Act, as fully as if those provisions were set forth herein.
27        No tax may be imposed by a home rule county  pursuant  to
28    this Section unless the county also imposes a tax at the same
29    rate pursuant to Section 5-1007.
30        Persons  subject  to  any  tax  imposed  pursuant  to the
31    authority granted in this Section  may  reimburse  themselves
32    for  their  seller's  tax  liability  hereunder by separately
33    stating such tax as an additional charge, which charge may be
34    stated in combination, in a single  amount,  with  State  tax
SB374 Engrossed             -17-              LRB9002207DNmbB
 1    which  sellers are required to collect under the Use Tax Act,
 2    pursuant to such bracket  schedules  as  the  Department  may
 3    prescribe.
 4        Whenever  the  Department determines that a refund should
 5    be made under this Section to a claimant instead of issuing a
 6    credit memorandum, the  Department  shall  notify  the  State
 7    Comptroller,  who  shall  cause the order to be drawn for the
 8    amount specified and to the person named in the  notification
 9    from  the  Department.  The refund shall be paid by the State
10    Treasurer out of the home rule county  retailers'  occupation
11    tax fund.
12        The  Department  shall  forthwith  pay  over to the State
13    Treasurer, ex officio, as trustee, all  taxes  and  penalties
14    collected  hereunder.   On  or  before  the  25th day of each
15    calendar month, the Department shall prepare and  certify  to
16    the  Comptroller  the disbursement of stated sums of money to
17    named counties, the counties to be those from which retailers
18    have paid taxes or  penalties  hereunder  to  the  Department
19    during the second preceding calendar month.  The amount to be
20    paid to each county shall be the amount (not including credit
21    memoranda)  collected  hereunder  during the second preceding
22    calendar  month  by  the  Department  plus  an   amount   the
23    Department determines is necessary to offset any amounts that
24    were  erroneously  paid  to  a different taxing body, and not
25    including an amount equal  to  the  amount  of  refunds  made
26    during  the second preceding calendar month by the Department
27    on behalf of such county, and not including any amount  which
28    the  Department determines is necessary to offset any amounts
29    which were payable  to  a  different  taxing  body  but  were
30    erroneously paid to the county. Within 10 days after receipt,
31    by  the Comptroller, of the disbursement certification to the
32    counties provided for in this Section  to  be  given  to  the
33    Comptroller  by  the  Department, the Comptroller shall cause
34    the  orders  to  be  drawn  for  the  respective  amounts  in
SB374 Engrossed             -18-              LRB9002207DNmbB
 1    accordance   with   the   directions   contained    in    the
 2    certification.
 3        In addition to the disbursement required by the preceding
 4    paragraph,  an allocation shall be made in March of each year
 5    to  each  county  that  received  more   than   $500,000   in
 6    disbursements  under the preceding paragraph in the preceding
 7    calendar year.  The allocation shall be in an amount equal to
 8    the average monthly distribution made  to  each  such  county
 9    under  the  preceding paragraph during the preceding calendar
10    year (excluding the  2  months  of  highest  receipts).   The
11    distribution  made  in  March  of each year subsequent to the
12    year in  which  an  allocation  was  made  pursuant  to  this
13    paragraph and the preceding paragraph shall be reduced by the
14    amount  allocated  and  disbursed under this paragraph in the
15    preceding calendar year.  The Department  shall  prepare  and
16    certify  to  the Comptroller for disbursement the allocations
17    made in accordance with this paragraph.
18        For the purpose of  determining  the  local  governmental
19    unit  whose tax is applicable, a retail sale by a producer of
20    coal or other mineral mined in Illinois is a sale  at  retail
21    at  the  place  where  the  coal  or  other  mineral mined in
22    Illinois is extracted from the earth.   This  paragraph  does
23    not  apply  to  coal or other mineral when it is delivered or
24    shipped by the seller to the purchaser  at  a  point  outside
25    Illinois  so  that the sale is exempt under the United States
26    Constitution as a sale in interstate or foreign commerce. For
27    purposes of determining the local governmental unit whose tax
28    is  applicable  under  Section  2-5(32)  of  the   Retailers'
29    Occupation  Tax  Act,  a retail sale by a lessor is a sale at
30    retail at the place where leased tangible  personal  property
31    is located.
32        Nothing in this Section shall be construed to authorize a
33    county  to impose a tax upon the privilege of engaging in any
34    business which under the Constitution of  the  United  States
SB374 Engrossed             -19-              LRB9002207DNmbB
 1    may not be made the subject of taxation by this State.
 2        An  ordinance  or  resolution imposing or discontinuing a
 3    tax hereunder or effecting a change in the rate thereof shall
 4    be adopted and  a  certified  copy  thereof  filed  with  the
 5    Department  on or before the first day of June, whereupon the
 6    Department shall  proceed  to  administer  and  enforce  this
 7    Section  as of the first day of September next following such
 8    adoption and filing. Beginning January 1, 1992, an  ordinance
 9    or  resolution imposing or discontinuing the tax hereunder or
10    effecting a change in the rate thereof shall be adopted and a
11    certified copy thereof filed with the Department on or before
12    the first day of July, whereupon the Department shall proceed
13    to administer and enforce this Section as of the first day of
14    October next following such adoption  and  filing.  Beginning
15    January  1,  1993,  an  ordinance  or  resolution imposing or
16    discontinuing the tax hereunder or effecting a change in  the
17    rate  thereof  shall  be adopted and a certified copy thereof
18    filed with the Department on  or  before  the  first  day  of
19    October, whereupon the Department shall proceed to administer
20    and  enforce this Section as of the first day of January next
21    following such adoption and filing.
22        When certifying the amount of a monthly disbursement to a
23    county under this Section, the Department shall  increase  or
24    decrease  such  amount  by  an amount necessary to offset any
25    misallocation of previous disbursements.  The  offset  amount
26    shall be the amount erroneously disbursed within the previous
27    6 months from the time a misallocation is discovered.
28        This Section shall be known and may be cited as the "Home
29    Rule County Retailers' Occupation Tax Law".
30    (Source: P.A. 86-962; 86-1028; 86-1475; 87-205; 87-895.)
31        (55 ILCS 5/5-1006.5)
32        Sec.  5-1006.5.  Special County Retailers' Occupation Tax
33    For Public Safety.
SB374 Engrossed             -20-              LRB9002207DNmbB
 1        (a)  The county board of any county with a population  in
 2    excess  of  180,000  inhabitants,  as  determined by the most
 3    recent decennial census, may impose a tax  upon  all  persons
 4    engaged   in   the  business  of  selling  tangible  personal
 5    property, other than personal property titled  or  registered
 6    with  an  agency of this State's government, at retail in the
 7    county on the gross receipts  from  the  sales  made  in  the
 8    course  of business to provide revenue to be used exclusively
 9    for public safety purposes in that county, if  a  proposition
10    for the tax has been submitted to the electors of that county
11    and  approved  by a majority of those voting on the question.
12    If imposed, this tax shall be  imposed  only  in  one-quarter
13    percent increments. By resolution, the county board may order
14    the  proposition to be submitted at any election.  The county
15    clerk shall certify  the  question  to  the  proper  election
16    authority, who shall submit the proposition at an election in
17    accordance with the general election law.
18        The  proposition  shall be in substantially the following
19    form:
20             "Shall (name of county) be authorized  to  impose  a
21        public  safety  tax  at the rate of .... upon all persons
22        engaged in the  business  of  selling  tangible  personal
23        property  at  retail in the county on gross receipts from
24        the sales made in the course of their business to be used
25        for crime prevention, detention, and other public  safety
26        purposes?"
27    Votes  shall  be recorded as Yes or No.  If a majority of the
28    electors voting on the proposition vote in favor of  it,  the
29    county may impose the tax.
30        This  additional  tax  may not be imposed on the sales of
31    food for human consumption that is to  be  consumed  off  the
32    premises  where  it  is sold (other than alcoholic beverages,
33    soft drinks, and food which has been prepared  for  immediate
34    consumption) and prescription and non-prescription medicines,
SB374 Engrossed             -21-              LRB9002207DNmbB
 1    drugs,   medical   appliances   and  insulin,  urine  testing
 2    materials, syringes, and needles used by diabetics.  The  tax
 3    imposed  by  a  county  under  this  Section  and  all  civil
 4    penalties  that  may  be  assessed  as an incident of the tax
 5    shall be collected and enforced by the Illinois Department of
 6    Revenue.  The certificate of registration that is  issued  by
 7    the  Department to a retailer under the Retailers' Occupation
 8    Tax Act shall permit the retailer to  engage  in  a  business
 9    that  is  taxable  without  registering  separately  with the
10    Department  under  an  ordinance  or  resolution  under  this
11    Section.  The Department has full  power  to  administer  and
12    enforce  this Section, to collect all taxes and penalties due
13    under this Section, to dispose  of  taxes  and  penalties  so
14    collected  in  the  manner  provided  in this Section, and to
15    determine all rights to credit memoranda arising  on  account
16    of  the  erroneous  payment  of  a  tax or penalty under this
17    Section.  In the administration of and compliance  with  this
18    Section,  the  Department and persons who are subject to this
19    Section shall (i) have the same rights, remedies, privileges,
20    immunities, powers, and duties, (ii) be subject to  the  same
21    conditions,   restrictions,   limitations,   penalties,   and
22    definitions  of  terms,  and  (iii)  employ the same modes of
23    procedure as are prescribed in Sections 1, 1a, 1a-1, 1d,  1e,
24    1f,  1i,  1j, 2, 2-10 (in respect to all provisions contained
25    in those Sections other than the State rate  of  tax),  2-40,
26    2a,  2b,  2c,  3  (except  provisions relating to transaction
27    returns and quarter monthly payments), 4, 5, 5a, 5b, 5c,  5d,
28    5e,  5f,  5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10,
29    11, 11a, 12, and 13 of the Retailers' Occupation Tax Act  and
30    Section  3-7  of  the  Uniform Penalty and Interest Act as if
31    those provisions were set forth in this Section.
32        Persons subject to any tax imposed  under  the  authority
33    granted  in  this  Section may reimburse themselves for their
34    sellers' tax liability by separately stating the  tax  as  an
SB374 Engrossed             -22-              LRB9002207DNmbB
 1    additional charge, which charge may be stated in combination,
 2    in a single amount, with State tax which sellers are required
 3    to  collect under the Use Tax Act, pursuant to such bracketed
 4    schedules as the Department may prescribe.
 5        Whenever the Department determines that a  refund  should
 6    be made under this Section to a claimant instead of issuing a
 7    credit  memorandum,  the  Department  shall  notify the State
 8    Comptroller, who shall cause the order to be  drawn  for  the
 9    amount  specified and to the person named in the notification
10    from the Department.  The refund shall be paid by  the  State
11    Treasurer   out   of  the  County  Public  Safety  Retailers'
12    Occupation Tax Fund.
13        (b)  If a tax has been imposed under  subsection  (a),  a
14    service occupation tax shall also be imposed at the same rate
15    upon  all  persons engaged, in the county, in the business of
16    making sales of service, who, as an incident to making  those
17    sales  of service, transfer tangible personal property within
18    the county as an incident to a sale of service. This tax  may
19    not be imposed on sales of food for human consumption that is
20    to  be consumed off the premises where it is sold (other than
21    alcoholic beverages,  soft  drinks,  and  food  prepared  for
22    immediate  consumption) and prescription and non-prescription
23    medicines,  drugs,  medical  appliances  and  insulin,  urine
24    testing materials, syringes, and needles used  by  diabetics.
25    The tax imposed under this subsection and all civil penalties
26    that  may  be  assessed  as  an  incident  thereof  shall  be
27    collected  and  enforced  by  the  Department of Revenue. The
28    Department has full power  to  administer  and  enforce  this
29    subsection; to collect all taxes and penalties due hereunder;
30    to  dispose of taxes and penalties so collected in the manner
31    hereinafter provided; and to determine all rights  to  credit
32    memoranda  arising on account of the erroneous payment of tax
33    or  penalty  hereunder.    In  the  administration  of,   and
34    compliance  with  this subsection, the Department and persons
SB374 Engrossed             -23-              LRB9002207DNmbB
 1    who are subject to this paragraph shall  (i)  have  the  same
 2    rights, remedies, privileges, immunities, powers, and duties,
 3    (ii)   be  subject  to  the  same  conditions,  restrictions,
 4    limitations,   penalties,   exclusions,    exemptions,    and
 5    definitions  of  terms,  and  (iii)  employ the same modes of
 6    procedure as are prescribed in Sections 1a-1, 2 (except  that
 7    the   reference  to  State  in  the  definition  of  supplier
 8    maintaining a place of business in this State shall mean  the
 9    county),  2a,  3  through  3-50 (in respect to all provisions
10    therein other than the State rate of tax), 4 (except that the
11    reference to the State shall be  to  the  county),  5,  7,  8
12    (except  that  the  jurisdiction  to which the tax shall be a
13    debt to the extent indicated in that Section 8 shall  be  the
14    county),  9  (except  as  to  the  disposition  of  taxes and
15    penalties collected, and except that the returned merchandise
16    credit for this tax may not be taken against any State  tax),
17    10, 11, 12 (except the reference therein to Section 2b of the
18    Retailers' Occupation Tax Act), 13 (except that any reference
19    to  the  State shall mean the county), the first paragraph of
20    Section 15, 16, 17, 18, 19 and 20 of the  Service  Occupation
21    Tax  Act  and Section 3-7 of the Uniform Penalty and Interest
22    Act, as fully as if those provisions were set forth herein.
23        Persons subject to any tax imposed  under  the  authority
24    granted in this subsection may reimburse themselves for their
25    serviceman's  tax  liability by separately stating the tax as
26    an  additional  charge,  which  charge  may  be   stated   in
27    combination,   in  a  single  amount,  with  State  tax  that
28    servicemen are authorized to collect under  the  Service  Use
29    Tax  Act,  in  accordance  with such bracket schedules as the
30    Department may prescribe.
31        Whenever the Department determines that a  refund  should
32    be  made  under  this  subsection  to  a  claimant instead of
33    issuing a credit memorandum, the Department shall notify  the
34    State  Comptroller,  who  shall cause the warrant to be drawn
SB374 Engrossed             -24-              LRB9002207DNmbB
 1    for the amount specified, and to the  person  named,  in  the
 2    notification  from  the Department.  The refund shall be paid
 3    by the State  Treasurer  out  of  the  County  Public  Safety
 4    Retailers' Occupation Fund.
 5        Nothing   in   this  subsection  shall  be  construed  to
 6    authorize the county to impose a tax upon  the  privilege  of
 7    engaging  in any business which under the Constitution of the
 8    United States may not be made the subject of taxation by  the
 9    State.
10        (c)  The  Department  shall  immediately  pay over to the
11    State Treasurer,  Ex  Officio,  as  trustee,  all  taxes  and
12    penalties  collected  under this Section to be deposited into
13    the County Public  Safety  Retailers'  Occupation  Tax  Fund,
14    which  is  created  in  the State treasury.  On or before the
15    25th day of each calendar month, the Department shall prepare
16    and certify to the Comptroller  the  disbursement  of  stated
17    sums  of money to the counties from which retailers have paid
18    taxes or  penalties  to  the  Department  during  the  second
19    preceding  calendar  month.   The  amount  to be paid to each
20    county shall be the amount (not including  credit  memoranda)
21    collected  under  this  Section  during  the second preceding
22    calendar  month  by  the  Department  plus  an   amount   the
23    Department determines is necessary to offset any amounts that
24    were  erroneously  paid  to  a different taxing body, and not
25    including (i) an amount equal to the amount of  refunds  made
26    during  the second preceding calendar month by the Department
27    on behalf  of  the  county  and  (ii)  any  amount  that  the
28    Department determines is necessary to offset any amounts that
29    were  payable to a different taxing body but were erroneously
30    paid to the county.  Within 10  days  after  receipt  by  the
31    Comptroller of the disbursement certification to the counties
32    provided  for  in this Section to be given to the Comptroller
33    by the Department, the Comptroller shall cause the orders  to
34    be  drawn  for  the  respective  amounts  in  accordance with
SB374 Engrossed             -25-              LRB9002207DNmbB
 1    directions contained in the certification.
 2        In addition to the disbursement required by the preceding
 3    paragraph, an allocation shall be made in March of each  year
 4    to   each   county   that  received  more  than  $500,000  in
 5    disbursements under the preceding paragraph in the  preceding
 6    calendar year.  The allocation shall be in an amount equal to
 7    the  average  monthly  distribution  made to each such county
 8    under the preceding paragraph during the  preceding  calendar
 9    year  (excluding  the  2  months  of  highest receipts).  The
10    distribution made in March of each  year  subsequent  to  the
11    year  in  which  an  allocation  was  made  pursuant  to this
12    paragraph and the preceding paragraph shall be reduced by the
13    amount allocated and disbursed under this  paragraph  in  the
14    preceding  calendar  year.   The Department shall prepare and
15    certify to the Comptroller for disbursement  the  allocations
16    made in accordance with this paragraph.
17        (d)  For   the   purpose   of   determining   the   local
18    governmental unit whose tax is applicable, a retail sale by a
19    producer  of  coal  or another mineral mined in Illinois is a
20    sale at retail at the place where the coal or  other  mineral
21    mined   in  Illinois  is  extracted  from  the  earth.   This
22    paragraph does not apply to coal or another mineral  when  it
23    is  delivered  or shipped by the seller to the purchaser at a
24    point outside Illinois so that the sale is exempt  under  the
25    United States Constitution as a sale in interstate or foreign
26    commerce.  For purposes of determining the local governmental
27    unit whose tax is applicable under  Section  2-5(32)  of  the
28    Retailers' Occupation Tax Act, a retail sale by a lessor is a
29    sale  at  retail  at the place where leased tangible personal
30    property is located.
31        (e)  Nothing  in  this  Section  shall  be  construed  to
32    authorize a county to impose a  tax  upon  the  privilege  of
33    engaging  in  any business that under the Constitution of the
34    United States may not be made the subject of taxation by this
SB374 Engrossed             -26-              LRB9002207DNmbB
 1    State.
 2        (f)  The  results   of   any   election   authorizing   a
 3    proposition to impose a tax under this Section or effecting a
 4    change  in  the  rate of tax shall be certified by the county
 5    clerk and filed with the Illinois Department of Revenue on or
 6    before the first day of  June.  The  Illinois  Department  of
 7    Revenue  shall  then  proceed  to administer and enforce this
 8    Section as of the first day of  January  next  following  the
 9    filing.
10        (g)  When certifying the amount of a monthly disbursement
11    to a county under this Section, the Department shall increase
12    or  decrease the amounts by an amount necessary to offset any
13    miscalculation of previous disbursements.  The offset  amount
14    shall be the amount erroneously disbursed within the previous
15    6 months from the time a miscalculation is discovered.
16        (h)  This  Section  may  be  cited as the "Special County
17    Occupation Tax For Public Safety Law".
18    (Source: P.A. 89-107, eff. 1-1-96.)
19        Section 20.  The Illinois Municipal Code  is  amended  by
20    changing Sections 8-11-1, 8-11-1.3, and 8-11-1.6 as follows:
21        (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
22        Sec.  8-11-1.  The  corporate  authorities of a home rule
23    municipality may impose a tax upon all persons engaged in the
24    business of selling tangible personal property, other than an
25    item of tangible personal property titled or registered  with
26    an  agency  of  this  State's  government,  at  retail in the
27    municipality on the gross receipts from these sales  made  in
28    the  course of such business.  If imposed, the tax shall only
29    be imposed in 1/4% increments.  On  and  after  September  1,
30    1991,  this additional tax may not be imposed on the sales of
31    food for human consumption that is to  be  consumed  off  the
32    premises  where  it  is sold (other than alcoholic beverages,
SB374 Engrossed             -27-              LRB9002207DNmbB
 1    soft drinks and food that has  been  prepared  for  immediate
 2    consumption)  and prescription and nonprescription medicines,
 3    drugs,  medical  appliances  and   insulin,   urine   testing
 4    materials,  syringes  and  needles used by diabetics. The tax
 5    imposed by a home rule municipality under  this  Section  and
 6    all  civil  penalties  that may be assessed as an incident of
 7    the  tax  shall  be  collected  and  enforced  by  the  State
 8    Department of Revenue.  The certificate of registration  that
 9    is   issued  by  the  Department  to  a  retailer  under  the
10    Retailers' Occupation Tax Act shall permit  the  retailer  to
11    engage  in  a business that is taxable under any ordinance or
12    resolution  enacted  pursuant   to   this   Section   without
13    registering   separately   with  the  Department  under  such
14    ordinance  or  resolution  or  under   this   Section.    The
15    Department  shall  have  full power to administer and enforce
16    this  Section;  to  collect  all  taxes  and  penalties   due
17    hereunder;  to dispose of taxes and penalties so collected in
18    the manner hereinafter provided; and to determine all  rights
19    to  credit  memoranda  arising  on  account  of the erroneous
20    payment of tax or penalty hereunder.  In  the  administration
21    of,  and  compliance  with,  this  Section the Department and
22    persons who are subject to this Section shall have  the  same
23    rights,  remedies, privileges, immunities, powers and duties,
24    and  be  subject  to  the  same   conditions,   restrictions,
25    limitations,  penalties  and definitions of terms, and employ
26    the same modes of procedure, as are prescribed in Sections 1,
27    1a, 1d, 1e, 1f, 1i, 1j, 2 through 2-65  (in  respect  to  all
28    provisions  therein  other than the State rate of tax), 2c, 3
29    (except  as  to  the  disposition  of  taxes  and   penalties
30    collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
31    5l,  6,  6a,  6b,  6c,  7,  8,  9,  10,  11, 12 and 13 of the
32    Retailers' Occupation Tax Act and Section 3-7 of the  Uniform
33    Penalty  and  Interest  Act,  as fully as if those provisions
34    were set forth herein.
SB374 Engrossed             -28-              LRB9002207DNmbB
 1        No tax may be imposed by a home rule  municipality  under
 2    this  Section  unless  the municipality also imposes a tax at
 3    the same rate under Section 8-11-5 of this Act.
 4        Persons subject to any tax imposed  under  the  authority
 5    granted  in  this  Section may reimburse themselves for their
 6    seller's tax liability hereunder by separately  stating  that
 7    tax  as  an  additional charge, which charge may be stated in
 8    combination, in a single amount, with State tax which sellers
 9    are required to collect under the Use Tax  Act,  pursuant  to
10    such bracket schedules as the Department may prescribe.
11        Whenever  the  Department determines that a refund should
12    be made under this Section to a claimant instead of issuing a
13    credit memorandum, the  Department  shall  notify  the  State
14    Comptroller,  who  shall  cause the order to be drawn for the
15    amount specified and to the person named in the  notification
16    from  the  Department.  The refund shall be paid by the State
17    Treasurer  out  of  the  home   rule   municipal   retailers'
18    occupation tax fund.
19        The  Department  shall  immediately pay over to the State
20    Treasurer, ex officio, as trustee, all  taxes  and  penalties
21    collected  hereunder.   On  or  before  the  25th day of each
22    calendar month, the Department shall prepare and  certify  to
23    the  Comptroller  the disbursement of stated sums of money to
24    named municipalities, the municipalities  to  be  those  from
25    which retailers have paid taxes or penalties hereunder to the
26    Department  during  the  second preceding calendar month. The
27    amount to be paid to each municipality shall  be  the  amount
28    (not  including  credit memoranda) collected hereunder during
29    the second preceding calendar month by the Department plus an
30    amount the Department determines is necessary to  offset  any
31    amounts  that  were  erroneously  paid  to a different taxing
32    body, and not including an amount  equal  to  the  amount  of
33    refunds  made  during  the second preceding calendar month by
34    the Department  on  behalf  of  such  municipality,  and  not
SB374 Engrossed             -29-              LRB9002207DNmbB
 1    including  any  amount  that  the  Department  determines  is
 2    necessary  to  offset  any  amounts  that  were  payable to a
 3    different taxing  body  but  were  erroneously  paid  to  the
 4    municipality. Within 10 days after receipt by the Comptroller
 5    of  the  disbursement  certification  to  the  municipalities
 6    provided  for  in this Section to be given to the Comptroller
 7    by the Department, the Comptroller shall cause the orders  to
 8    be  drawn  for  the respective amounts in accordance with the
 9    directions contained in the certification.
10        In addition to the disbursement required by the preceding
11    paragraph  and  in  order  to  mitigate  delays   caused   by
12    distribution  procedures,  an allocation shall, if requested,
13    be made within  10  days  after  January  14,  1991,  and  in
14    November   of   1991   and  each  year  thereafter,  to  each
15    municipality that received  more  than  $500,000  during  the
16    preceding  fiscal  year,  (July  1  through  June 30) whether
17    collected by the municipality or disbursed by the  Department
18    as required by this Section. Within 10 days after January 14,
19    1991,   participating   municipalities   shall   notify   the
20    Department  in  writing  of  their intent to participate.  In
21    addition,  for  the   initial   distribution,   participating
22    municipalities  shall  certify  to the Department the amounts
23    collected by the municipality for each month under  its  home
24    rule  occupation and service occupation tax during the period
25    July 1, 1989 through June 30, 1990.  The allocation within 10
26    days after January 14, 1991, shall be in an amount  equal  to
27    the  monthly average of these amounts, excluding the 2 months
28    of highest receipts. The monthly average for  the  period  of
29    July  1,  1990  through  June  30, 1991 will be determined as
30    follows:  the amounts collected by the municipality under its
31    home rule occupation and service occupation  tax  during  the
32    period  of  July  1,  1990  through  September 30, 1990, plus
33    amounts  collected  by  the  Department  and  paid  to   such
34    municipality through June 30, 1991, excluding the 2 months of
SB374 Engrossed             -30-              LRB9002207DNmbB
 1    highest  receipts.   The  monthly average for each subsequent
 2    period of July 1 through June 30 shall be an amount equal  to
 3    the monthly distribution made to each such municipality under
 4    the  preceding  paragraph during this period, excluding the 2
 5    months  of  highest  receipts.   The  distribution  made   in
 6    November  1991  and each year thereafter under this paragraph
 7    and the preceding paragraph shall be reduced  by  the  amount
 8    allocated and disbursed under this paragraph in the preceding
 9    period  of  July  1  through  June  30.  The Department shall
10    prepare and certify to the Comptroller for  disbursement  the
11    allocations made in accordance with this paragraph.
12        For  the  purpose  of  determining the local governmental
13    unit whose tax is applicable, a retail sale by a producer  of
14    coal  or  other mineral mined in Illinois is a sale at retail
15    at the place  where  the  coal  or  other  mineral  mined  in
16    Illinois  is  extracted  from the earth.  This paragraph does
17    not apply to coal or other mineral when it  is  delivered  or
18    shipped  by  the  seller  to the purchaser at a point outside
19    Illinois so that the sale is exempt under the  United  States
20    Constitution as a sale in interstate or foreign commerce. For
21    purposes of determining the local governmental unit whose tax
22    is   applicable  under  Section  2-5(32)  of  the  Retailers'
23    Occupation Tax Act, a retail sale by a lessor is  a  sale  at
24    retail  at  the place where leased tangible personal property
25    is located.
26        Nothing in this Section shall be construed to authorize a
27    municipality to impose a tax upon the privilege  of  engaging
28    in  any  business  which under the Constitution of the United
29    States may not be made the subject of taxation by this State.
30        An ordinance or resolution imposing  or  discontinuing  a
31    tax hereunder or effecting a change in the rate thereof shall
32    be  adopted  and  a  certified  copy  thereof  filed with the
33    Department on or before the first day of June, whereupon  the
34    Department  shall  proceed  to  administer  and  enforce this
SB374 Engrossed             -31-              LRB9002207DNmbB
 1    Section as of the first day of September next  following  the
 2    adoption  and filing. Beginning January 1, 1992, an ordinance
 3    or resolution imposing or discontinuing the tax hereunder  or
 4    effecting a change in the rate thereof shall be adopted and a
 5    certified copy thereof filed with the Department on or before
 6    the first day of July, whereupon the Department shall proceed
 7    to administer and enforce this Section as of the first day of
 8    October  next  following  such adoption and filing. Beginning
 9    January 1, 1993,  an  ordinance  or  resolution  imposing  or
10    discontinuing  the tax hereunder or effecting a change in the
11    rate thereof shall be adopted and a  certified  copy  thereof
12    filed  with  the  Department  on  or  before the first day of
13    October, whereupon the Department shall proceed to administer
14    and enforce this Section as of the first day of January  next
15    following  the  adoption  and filing. However, a municipality
16    located in a county with a population in excess of  3,000,000
17    that  elected  to  become  a  home  rule  unit at the general
18    primary election in 1994 may adopt an ordinance or resolution
19    imposing the tax under this Section and file a certified copy
20    of the ordinance or resolution  with  the  Department  on  or
21    before  July  1,  1994.  The Department shall then proceed to
22    administer and enforce this Section as of October 1, 1994.
23        When certifying the amount of a monthly disbursement to a
24    municipality  under  this  Section,  the   Department   shall
25    increase  or  decrease  the  amount by an amount necessary to
26    offset  any  misallocation  of  previous  disbursements.  The
27    offset amount  shall  be  the  amount  erroneously  disbursed
28    within the previous 6 months from the time a misallocation is
29    discovered.
30        Any   unobligated  balance  remaining  in  the  Municipal
31    Retailers' Occupation Tax Fund on December  31,  1989,  which
32    fund was abolished by Public Act 85-1135, and all receipts of
33    municipal  tax  as  a  result  of audits of liability periods
34    prior to January 1,  1990,  shall  be  paid  into  the  Local
SB374 Engrossed             -32-              LRB9002207DNmbB
 1    Government  Tax  Fund  for  distribution  as provided by this
 2    Section prior to the enactment of  Public  Act  85-1135.  All
 3    receipts  of  municipal  tax as a result of an assessment not
 4    arising from an audit, for liability periods prior to January
 5    1, 1990, shall be paid into the Local Government Tax Fund for
 6    distribution before July 1, 1990, as provided by this Section
 7    prior to the enactment of Public  Act  85-1135;  and  on  and
 8    after July 1, 1990, all such receipts shall be distributed as
 9    provided in Section 6z-18 of the State Finance Act.
10        As  used  in this Section, "municipal" and "municipality"
11    means a city, village  or  incorporated  town,  including  an
12    incorporated town that has superseded a civil township.
13        This  Section shall be known and may be cited as the Home
14    Rule Municipal Retailers' Occupation Tax Act.
15    (Source: P.A. 87-205; 87-435; 87-895; 88-603, eff. 9-1-94.)
16        (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
17        Sec. 8-11-1.3.  The corporate authorities of  a  non-home
18    rule  municipality  with  more  than  130,000  but  less than
19    2,000,000 inhabitants may  impose  a  tax  upon  all  persons
20    engaged   in   the  business  of  selling  tangible  personal
21    property, other than on an item of tangible personal property
22    which is titled and registered by an agency of  this  State's
23    Government,  at retail in the municipality at the rate of 1/2
24    of 1% for expenditure on public infrastructure as defined  in
25    Section  8-11-1.2  if  approved  by referendum as provided in
26    Section 8-11-1.1, of the gross receipts from such sales  made
27    in  the  course  of  such  business.   The  tax  imposed by a
28    municipality pursuant to this Section and all civil penalties
29    that  may  be  assessed  as  an  incident  thereof  shall  be
30    collected and enforced by the State  Department  of  Revenue.
31    The  certificate  of  registration  which  is  issued  by the
32    Department to a retailer under the Retailers' Occupation  Tax
33    Act  shall permit such retailer to engage in a business which
SB374 Engrossed             -33-              LRB9002207DNmbB
 1    is taxable under any ordinance or resolution enacted pursuant
 2    to this  Section  without  registering  separately  with  the
 3    Department  under  such ordinance or resolution or under this
 4    Section.  The Department shall have full power to  administer
 5    and  enforce this Section; to collect all taxes and penalties
 6    due hereunder; to dispose of taxes and penalties so collected
 7    in the manner hereinafter  provided,  and  to  determine  all
 8    rights  to  credit  memoranda,  arising  on  account  of  the
 9    erroneous  payment  of  tax  or  penalty  hereunder.   In the
10    administration of, and compliance  with,  this  Section,  the
11    Department  and persons who are subject to this Section shall
12    have  the  same  rights,  remedies,  privileges,  immunities,
13    powers and duties, and be subject  to  the  same  conditions,
14    restrictions,   limitations,  penalties  and  definitions  of
15    terms, and  employ  the  same  modes  of  procedure,  as  are
16    prescribed  in  Sections  1,  1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
17    through 2-65 (in respect to all provisions therein other than
18    the State rate of tax), 2c, 3 (except as to  the  disposition
19    of  taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e,
20    5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9,  10,  11,
21    12  and  13  of the Retailers' Occupation Tax Act and Section
22    3-7 of the Uniform Penalty and Interest Act as  fully  as  if
23    those provisions were set forth herein.
24        Persons  subject  to  any  tax  imposed  pursuant  to the
25    authority granted in this Section  may  reimburse  themselves
26    for  their  seller's  tax  liability  hereunder by separately
27    stating such tax as an additional charge, which charge may be
28    stated in combination, in a single  amount,  with  State  tax
29    which  sellers are required to collect under the Use Tax Act,
30    pursuant to such bracket  schedules  as  the  Department  may
31    prescribe.
32        Whenever  the  Department determines that a refund should
33    be made under this Section to a claimant instead of issuing a
34    credit memorandum, the  Department  shall  notify  the  State
SB374 Engrossed             -34-              LRB9002207DNmbB
 1    Comptroller,  who  shall  cause the order to be drawn for the
 2    amount  specified,  and  to  the  person   named,   in   such
 3    notification  from the Department.  Such refund shall be paid
 4    by the State Treasurer out of  the  non-home  rule  municipal
 5    retailers' occupation tax fund.
 6        The  Department  shall  forthwith  pay  over to the State
 7    Treasurer, ex officio, as trustee, all  taxes  and  penalties
 8    collected  hereunder.   On  or  before  the  25th day of each
 9    calendar month, the Department shall prepare and  certify  to
10    the  Comptroller  the disbursement of stated sums of money to
11    named municipalities, the municipalities  to  be  those  from
12    which retailers have paid taxes or penalties hereunder to the
13    Department  during  the  second preceding calendar month. The
14    amount to be paid to each municipality shall  be  the  amount
15    (not  including  credit memoranda) collected hereunder during
16    the second preceding calendar month by the Department plus an
17    amount the Department determines is necessary to  offset  any
18    amounts  which  were  erroneously  paid to a different taxing
19    body,  and not including an amount equal  to  the  amount  of
20    refunds  made  during  the second preceding calendar month by
21    the Department  on  behalf  of  such  municipality,  and  not
22    including  any  amount  which  the  Department  determines is
23    necessary to offset any  amounts  which  were  payable  to  a
24    different  taxing  body  but  were  erroneously  paid  to the
25    municipality.  Within  10  days   after   receipt,   by   the
26    Comptroller,   of   the  disbursement  certification  to  the
27    municipalities, provided for in this Section to be  given  to
28    the  Comptroller  by  the  Department,  the Comptroller shall
29    cause the orders to be drawn for the  respective  amounts  in
30    accordance    with   the   directions   contained   in   such
31    certification.
32        For the purpose of  determining  the  local  governmental
33    unit whose tax is applicable, a retail sale, by a producer of
34    coal  or other mineral mined in Illinois, is a sale at retail
SB374 Engrossed             -35-              LRB9002207DNmbB
 1    at the place  where  the  coal  or  other  mineral  mined  in
 2    Illinois  is  extracted  from the earth.  This paragraph does
 3    not apply to coal or other mineral when it  is  delivered  or
 4    shipped  by  the  seller  to the purchaser at a point outside
 5    Illinois so  that  the  sale  is  exempt  under  the  Federal
 6    Constitution as a sale in interstate or foreign commerce. For
 7    purposes of determining the local governmental unit whose tax
 8    is   applicable  under  Section  2-5(32)  of  the  Retailers'
 9    Occupation Tax Act, a retail sale by a lessor is  a  sale  at
10    retail  at  the place where leased tangible personal property
11    is located.
12        Nothing in this Section shall be construed to authorize a
13    municipality to impose a tax upon the privilege  of  engaging
14    in  any  business  which under the constitution of the United
15    States may not be made the subject of taxation by this State.
16        When certifying the amount of a monthly disbursement to a
17    municipality  under  this  Section,  the   Department   shall
18    increase  or  decrease  such amount by an amount necessary to
19    offset  any  misallocation  of  previous  disbursements.  The
20    offset amount  shall  be  the  amount  erroneously  disbursed
21    within the previous 6 months from the time a misallocation is
22    discovered.
23        As  used  in this Section, "municipal" and "municipality"
24    means a city, village  or  incorporated  town,  including  an
25    incorporated town which has superseded a civil township.
26        This  Section  shall  be  known  and  may be cited as the
27    "Non-Home Rule Municipal Retailers' Occupation Tax Act".
28    (Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
29        (65 ILCS 5/8-11-1.6)
30        Sec.   8-11-1.6.  Non-home   rule   municipal   retailers
31    occupation tax; municipalities between 20,000 and 25,000. The
32    corporate authorities of a non-home rule municipality with  a
33    population of more than 20,000 but less than 25,000 that has,
SB374 Engrossed             -36-              LRB9002207DNmbB
 1    prior to January 1, 1987, established a Redevelopment Project
 2    Area  that  has  been certified as a State Sales Tax Boundary
 3    and has issued bonds or otherwise  incurred  indebtedness  to
 4    pay  for  costs  in excess of $5,000,000, which is secured in
 5    part by a tax increment allocation fund, in  accordance  with
 6    the  provisions  of  Division  11-74.4  of  this Code may, by
 7    passage of an  ordinance,  impose  a  tax  upon  all  persons
 8    engaged   in   the  business  of  selling  tangible  personal
 9    property, other than on an item of tangible personal property
10    that is titled and registered by an agency  of  this  State's
11    Government,  at  retail in the municipality. This tax may not
12    be imposed on the sales of food for human consumption that is
13    to be consumed off the premises where it is sold (other  than
14    alcoholic  beverages,  soft  drinks,  and  food that has been
15    prepared for  immediate  consumption)  and  prescription  and
16    nonprescription  medicines,  drugs,  medical  appliances  and
17    insulin,  urine testing materials, syringes, and needles used
18    by diabetics. If imposed, the tax shall only  be  imposed  in
19    .25% increments of the gross receipts from such sales made in
20    the  course  of  business.  Any tax imposed by a municipality
21    under this Sec. and all civil penalties that may be  assessed
22    as an incident thereof shall be collected and enforced by the
23    State  Department  of  Revenue.  An  ordinance imposing a tax
24    hereunder or effecting a change in the rate thereof shall  be
25    adopted   and   a  certified  copy  thereof  filed  with  the
26    Department on or before the first day of  October,  whereupon
27    the  Department  shall proceed to administer and enforce this
28    Section as of the first day of January  next  following  such
29    adoption and filing.  The certificate of registration that is
30    issued  by  the Department to a retailer under the Retailers'
31    Occupation Tax Act shall permit the retailer to engage  in  a
32    business  that  is  taxable under any ordinance or resolution
33    enacted under this  Section  without  registering  separately
34    with  the  Department  under  the  ordinance or resolution or
SB374 Engrossed             -37-              LRB9002207DNmbB
 1    under this Section. The Department shall have full  power  to
 2    administer and enforce this Section, to collect all taxes and
 3    penalties due hereunder, to dispose of taxes and penalties so
 4    collected   in   the  manner  hereinafter  provided,  and  to
 5    determine all rights to credit memoranda, arising on  account
 6    of the erroneous payment of tax or penalty hereunder.  In the
 7    administration  of,  and  compliance  with  this Section, the
 8    Department and persons who are subject to this Section  shall
 9    have  the  same  rights,  remedies,  privileges,  immunities,
10    powers,  and  duties,  and be subject to the same conditions,
11    restrictions,  limitations,  penalties,  and  definitions  of
12    terms, and  employ  the  same  modes  of  procedure,  as  are
13    prescribed  in  Sections  1,  1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
14    through 2-65 (in respect to all provisions therein other than
15    the State rate of tax), 2c, 3 (except as to  the  disposition
16    of  taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e,
17    5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9,  10,  11,
18    12  and  13  of the Retailers' Occupation Tax Act and Section
19    3-7 of the Uniform Penalty and Interest Act as  fully  as  if
20    those provisions were set forth herein.
21        A  tax  may  not  be imposed by a municipality under this
22    Section unless the municipality also imposes  a  tax  at  the
23    same rate under Section 8-11-1.7 of this Act.
24        Persons  subject  to  any tax imposed under the authority
25    granted in this Section, may reimburse themselves  for  their
26    seller's  tax  liability  hereunder by separately stating the
27    tax as an additional charge, which charge may  be  stated  in
28    combination, in a single amount, with State tax which sellers
29    are  required  to  collect under the Use Tax Act, pursuant to
30    such bracket schedules as the Department may prescribe.
31        Whenever the Department determines that a  refund  should
32    be  made under this Section to a claimant, instead of issuing
33    a credit memorandum, the Department shall  notify  the  State
34    Comptroller,  who  shall  cause the order to be drawn for the
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 1    amount specified, and to the person named in the notification
 2    from the Department.  The refund shall be paid by  the  State
 3    Treasurer  out  of  the  Non-Home  Rule  Municipal Retailers'
 4    Occupation Tax Fund, which is hereby created.
 5        The Department shall forthwith  pay  over  to  the  State
 6    Treasurer,  ex  officio,  as trustee, all taxes and penalties
 7    collected hereunder.  On or  before  the  25th  day  of  each
 8    calendar  month,  the Department shall prepare and certify to
 9    the Comptroller the disbursement of stated sums of  money  to
10    named  municipalities,  the  municipalities  to be those from
11    which retailers have paid taxes or penalties hereunder to the
12    Department during the second preceding calendar  month.   The
13    amount  to  be  paid to each municipality shall be the amount
14    (not including credit memoranda) collected  hereunder  during
15    the second preceding calendar month by the Department plus an
16    amount  the  Department determines is necessary to offset any
17    amounts that were erroneously  paid  to  a  different  taxing
18    body,  and  not  including  an  amount equal to the amount of
19    refunds made during the second preceding  calendar  month  by
20    the  Department  on  behalf  of  the  municipality,  and  not
21    including  any  amount  that  the  Department  determines  is
22    necessary  to  offset  any  amounts  that  were  payable to a
23    different taxing  body  but  were  erroneously  paid  to  the
24    municipality.    Within   10   days   after  receipt  by  the
25    Comptroller  of  the  disbursement   certification   to   the
26    municipalities  provided  for  in this Section to be given to
27    the Comptroller by  the  Department,  the  Comptroller  shall
28    cause  the  orders  to be drawn for the respective amounts in
29    accordance   with   the   directions   contained    in    the
30    certification.
31        For  the  purpose  of  determining the local governmental
32    unit whose tax is applicable, a retail sale by a producer  of
33    coal  or  other mineral mined in Illinois is a sale at retail
34    at the place  where  the  coal  or  other  mineral  mined  in
SB374 Engrossed             -39-              LRB9002207DNmbB
 1    Illinois  is  extracted  from the earth.  This paragraph does
 2    not apply to coal or other mineral when it  is  delivered  or
 3    shipped  by  the  seller  to the purchaser at a point outside
 4    Illinois so  that  the  sale  is  exempt  under  the  federal
 5    Constitution as a sale in interstate or foreign commerce. For
 6    purposes of determining the local governmental unit whose tax
 7    is   applicable  under  Section  2-5(32)  of  the  Retailers'
 8    Occupation Tax Act, a retail sale by a lessor is  a  sale  at
 9    retail  at  the place where leased tangible personal property
10    is located.
11        Nothing in this Section shall be construed to authorize a
12    municipality to impose a tax upon the privilege  of  engaging
13    in  any  business  which under the constitution of the United
14    States may not be made the subject of taxation by this State.
15        When certifying the amount of a monthly disbursement to a
16    municipality  under  this  Section,  the   Department   shall
17    increase  or  decrease  the  amount by an amount necessary to
18    offset any  misallocation  of  previous  disbursements.   The
19    offset  amount  shall  be  the  amount  erroneously disbursed
20    within the previous 6 months from the time a misallocation is
21    discovered.
22        As used in this Section, "municipal"  and  "municipality"
23    means  a  city,  village,  or incorporated town, including an
24    incorporated town that has superseded a civil township.
25    (Source: P.A. 88-334; 89-399, eff. 8-20-95.)
26        Section 99.  Effective date.  This Act takes effect  upon
27    becoming law.

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