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Public Act 094-0781
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| HB5283 Enrolled |
LRB094 19381 BDD 55035 b |
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AN ACT concerning municipalities.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Use Tax Act is amended by changing Section |
12 as follows:
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(35 ILCS 105/12) (from Ch. 120, par. 439.12)
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Sec. 12. Applicability of Retailers' Occupation Tax Act and |
Uniform Penalty
and Interest Act. All of the provisions of |
Sections 1d, 1e, 1f, 1i, 1j,
1j.1, 1k,
1m,
1n, 1o, 2-6, 2a, 2b, |
2c, 3, 4 (except that the time limitation provisions
shall run
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from the date when the tax is due rather than from the date |
when gross
receipts are received), 5 (except that the time |
limitation provisions on
the issuance of notices of tax |
liability shall run from the date when the
tax is due rather |
than from the date when gross receipts are received and
except |
that in the case of a failure to file a return required by this |
Act, no
notice of tax liability shall be issued on and after |
each July 1 and January 1
covering tax due with that return |
during any month or period more than 6 years
before that July 1 |
or January 1, respectively), 5a,
5b, 5c, 5d, 5e, 5f, 5g, 5h, |
5j, 5k, 5l, 7, 8, 9, 10, 11 and 12 of
the Retailers' Occupation |
Tax Act and Section 3-7 of the Uniform
Penalty and Interest |
Act, which are not inconsistent with this Act,
shall apply, as |
far as practicable, to the subject matter of this Act to
the |
same extent as if such provisions were included herein.
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(Source: P.A. 90-42, eff. 1-1-98; 90-792, eff. 1-1-99.)
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Section 10. The Service Use Tax Act is amended by changing |
Section 12 as follows:
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(35 ILCS 110/12) (from Ch. 120, par. 439.42)
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Sec. 12. Applicability of Retailers' Occupation Tax Act and |
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Uniform
Penalty and Interest Act. All of the provisions of |
Sections 1d, 1e, 1f, 1i,
1j, 1j.1, 1k, 1m,
1n, 1o, 2-6, 2a, 2b, |
2c, 3 (except as to the disposition by the Department
of the
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money collected under this Act), 4 (except that the time |
limitation
provisions shall run from the date when gross |
receipts are received), 5
(except that the time limitation |
provisions on the issuance of notices of
tax liability shall |
run from the date when the tax is due rather than from
the date |
when gross receipts are received and except that in the case of |
a
failure to file a return required by this Act, no notice of |
tax liability shall
be issued on and after July 1 and January 1 |
covering tax due with that return
during any month or period |
more than 6 years before that July 1 or January
1, |
respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g,
5j, 5k, 5l, 7, 8, 9, |
10, 11 and 12 of the Retailers' Occupation Tax Act which
are |
not inconsistent with this Act, and Section 3-7 of the Uniform
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Penalty and Interest Act, shall apply, as far as practicable, |
to
the subject matter of this Act to the same extent as if such |
provisions
were included herein.
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(Source: P.A. 90-42, eff. 1-1-98; 90-792, eff. 1-1-99.)
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Section 15. The Service Occupation Tax Act is amended by |
changing Section 12 as follows:
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(35 ILCS 115/12) (from Ch. 120, par. 439.112)
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Sec. 12. All of the provisions of Sections 1d, 1e, 1f, 1i, |
1j, 1j.1, 1k,
1m,
1n, 1o, 2-6, 2a, 2b, 2c, 3 (except as to the |
disposition by the Department
of the
tax collected under this |
Act), 4 (except that the time limitation
provisions shall run |
from the date when the tax is due rather than from the
date |
when gross receipts are received), 5 (except that the time |
limitation
provisions on the issuance of notices of tax |
liability shall run from the
date when the tax is due rather |
than from the date when gross receipts are
received), 5a, 5b, |
5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 7, 8, 9, 10, 11 and
12 of the |
"Retailers' Occupation Tax Act" which are not inconsistent with |
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this
Act, and Section 3-7 of the Uniform Penalty and Interest |
Act shall
apply, as far as practicable, to the subject matter |
of this Act
to the same extent as if such provisions were |
included herein.
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(Source: P.A. 90-42, eff. 1-1-98; 90-792, eff. 1-1-99.)
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Section 20. The Retailers' Occupation Tax Act is amended by |
adding Section 2-6 as follows:
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(35 ILCS 120/2-6 new)
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Sec. 2-6. Building materials exemption; intermodal |
terminal facility areas. Each retailer that makes a qualified |
sale of building materials to be incorporated into real estate |
in a redevelopment project area within an intermodal terminal |
facility area in accordance with Section 11-74.4-3.1 of the |
Illinois Municipal Code by remodeling, rehabilitating, or new |
construction may deduct receipts from those sales when |
calculating the tax imposed by this Act. For purposes of this |
Section, "qualified sale" means a sale of building materials |
that will be incorporated into real estate as part of an |
industrial or commercial project for which a Certificate of |
Eligibility for Sales Tax Exemption has been issued by the |
corporate authorities of the municipality in which the building |
project is located. To document the exemption allowed under |
this Section, the retailer must obtain from the purchaser a |
copy of the Certificate of Eligibility for Sales Tax Exemption |
issued by the corporate authorities of the municipality in |
which the real estate into which the building materials will be |
incorporated is located. The Certificate of Eligibility for |
Sales Tax Exemption must contain all of the following: |
(1) A statement that the commercial or industrial |
project identified in the Certificate meets all the |
requirements of the jurisdiction in which the project is |
located. |
(2) The location or address of the building project. |
(3) The signature of the chief executive officer of the |
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municipality in which the building project is located, or |
the chief executive officer's delegate. |
In addition, the retailer must obtain a certificate from |
the purchaser that contains all of the following: |
(1) A statement that the building materials are being |
purchased for incorporation into real estate located in an |
intermodal terminal facility area included in a |
redevelopment project area in accordance with Section |
11-74.4-3.1 of the Illinois Municipal Code. |
(2) The location or address of the real estate into |
which the building materials will be incorporated. |
(3) The name of the intermodal terminal facility area |
in which that real estate is located. |
(4) A description of the building materials being |
purchased. |
(5) The purchaser's signature and date of purchase. The |
provisions of this Section are exempt from Section 2-70.
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(35 ILCS 120/1p rep.)
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Section 25. The Retailers' Occupation Tax Act is amended by |
repealing Section 1p.
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Section 30. The Counties Code is amended by changing |
Section 5-1006.5 as follows:
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(55 ILCS 5/5-1006.5)
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Sec. 5-1006.5. Special County Retailers' Occupation Tax
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For Public Safety or Transportation.
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(a) The county board of any county may impose a
tax upon |
all persons engaged in the business of selling tangible |
personal
property, other than personal property titled or |
registered with an agency of
this State's government, at retail |
in the county on the gross receipts from the
sales made in the |
course of business to provide revenue to be used exclusively
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for public safety or transportation purposes in that county, if |
a
proposition for the
tax has been submitted to the electors of |
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that county and
approved by a majority of those voting on the |
question. If imposed, this tax
shall be imposed only in |
one-quarter percent increments. By resolution, the
county |
board may order the proposition to be submitted at any |
election.
If the tax is imposed for
transportation purposes for |
expenditures for public highways or as
authorized
under the |
Illinois Highway Code, the county board must publish notice
of |
the existence of its long-range highway transportation
plan as |
required or described in Section 5-301 of the Illinois
Highway |
Code and must make the plan publicly available prior to
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approval of the ordinance or resolution
imposing the tax. If |
the tax is imposed for transportation purposes for
expenditures |
for passenger rail transportation, the county board must |
publish
notice of the existence of its long-range passenger |
rail transportation plan
and
must make the plan publicly |
available prior to approval of the ordinance or
resolution |
imposing the tax. The county clerk shall certify the
question |
to the proper election authority, who
shall submit the |
proposition at an election in accordance with the general
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election law.
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(1) The proposition for public safety purposes shall be |
in
substantially the following form:
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"Shall (name of county) be authorized to impose a
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public safety tax at the rate of .... upon all
persons |
engaged in the business
of selling
tangible personal |
property at retail in the county on gross receipts from the
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sales made in the course of their business?"
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For the purposes of the
paragraph, "public safety |
purposes" means
crime prevention, detention, fire |
fighting, police, medical, ambulance, or
other emergency |
services.
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Votes shall be recorded as "Yes" or "No".
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(2) The proposition for transportation purposes shall |
be in
substantially
the following form:
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"Shall (name of county) be authorized to impose a tax |
at the rate of
(insert rate) upon
all persons engaged in |
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the business of selling tangible personal property at
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retail in the county on gross receipts from the sales made |
in the course of
their business to be used for |
transportation purposes?
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For the purposes of this paragraph, transportation |
purposes means
construction, maintenance, operation, and |
improvement of
public highways, any other purpose for which |
a county may expend funds under
the Illinois Highway Code, |
and passenger rail transportation.
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The votes shall be recorded as "Yes" or "No".
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If a majority of the electors voting on
the proposition |
vote in favor of it, the county may impose the tax.
A county |
may not submit more than one proposition authorized by this |
Section
to the electors at any one time.
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This additional tax may not be imposed on the sales of food |
for human
consumption that is to be consumed off the premises |
where it is sold (other
than alcoholic beverages, soft drinks, |
and food which has been prepared for
immediate consumption) and |
prescription and non-prescription medicines, drugs,
medical |
appliances and insulin, urine testing materials, syringes, and |
needles
used by diabetics. The tax imposed by a county under |
this Section and
all civil penalties that may be assessed as an |
incident of the tax shall be
collected and enforced by the |
Illinois Department of Revenue and deposited
into a special |
fund created for that purpose. The certificate
of registration |
that is issued by the Department to a retailer under the
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Retailers' Occupation Tax Act shall permit the retailer to |
engage in a business
that is taxable without registering |
separately with the Department under an
ordinance or resolution |
under this Section. The Department has full
power to administer |
and enforce this Section, to collect all taxes and
penalties |
due under this Section, to dispose of taxes and penalties so
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collected in the manner provided in this Section, and to |
determine
all rights to credit memoranda arising on account of |
the erroneous payment of
a tax or penalty under this Section. |
In the administration of and compliance
with this Section, the |
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Department and persons who are subject to this Section
shall |
(i) have the same rights, remedies, privileges, immunities, |
powers, and
duties, (ii) be subject to the same conditions, |
restrictions, limitations,
penalties, and definitions of |
terms, and (iii) employ the same modes of
procedure as are |
prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f,
1i, 1j,
1k, 1m, |
1n,
2 through 2-70 ,
2-5, 2-5.5, 2-10 (in respect to all |
provisions contained in those Sections
other than the
State |
rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except |
provisions
relating to
transaction returns and quarter monthly |
payments), 4, 5, 5a, 5b, 5c, 5d, 5e,
5f,
5g, 5h, 5i, 5j, 5k, 5l, |
6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
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Retailers' Occupation Tax Act and Section 3-7 of the Uniform |
Penalty and
Interest Act as if those provisions were set forth |
in this Section.
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Persons subject to any tax imposed under the authority |
granted in this
Section may reimburse themselves for their |
sellers' tax liability by
separately stating the tax as an |
additional charge, which charge may be stated
in combination, |
in a single amount, with State tax which sellers are required
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to collect under the Use Tax Act, pursuant to such bracketed |
schedules as the
Department may prescribe.
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Whenever the Department determines that a refund should be |
made under this
Section to a claimant instead of issuing a |
credit memorandum, the Department
shall notify the State |
Comptroller, who shall cause the order to be drawn for
the |
amount specified and to the person named in the notification |
from the
Department. The refund shall be paid by the State |
Treasurer out of the County
Public Safety or Transportation |
Retailers' Occupation Tax Fund.
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(b) If a tax has been imposed under subsection (a), a
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service occupation tax shall
also be imposed at the same rate |
upon all persons engaged, in the county, in
the business
of |
making sales of service, who, as an incident to making those |
sales of
service, transfer tangible personal property within |
the county
as an
incident to a sale of service.
This tax may |
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not be imposed on sales of food for human consumption that is |
to
be consumed off the premises where it is sold (other than |
alcoholic beverages,
soft drinks, and food prepared for |
immediate consumption) and prescription and
non-prescription |
medicines, drugs, medical appliances and insulin, urine
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testing materials, syringes, and needles used by diabetics.
The |
tax imposed under this subsection and all civil penalties that |
may be
assessed as an incident thereof shall be collected and |
enforced by the
Department of Revenue. The Department has
full |
power to
administer and enforce this subsection; to collect all |
taxes and penalties
due hereunder; to dispose of taxes and |
penalties so collected in the manner
hereinafter provided; and |
to determine all rights to credit memoranda
arising on account |
of the erroneous payment of tax or penalty hereunder.
In the |
administration of, and compliance with this subsection, the
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Department and persons who are subject to this paragraph shall |
(i) have the
same rights, remedies, privileges, immunities, |
powers, and duties, (ii) be
subject to the same conditions, |
restrictions, limitations, penalties,
exclusions, exemptions, |
and definitions of terms, and (iii) employ the same
modes
of |
procedure as are prescribed in Sections 2 (except that the
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reference to State in the definition of supplier maintaining a |
place of
business in this State shall mean the county), 2a, 2b, |
2c, 3 through
3-50 (in respect to all provisions therein other |
than the State rate of
tax), 4 (except that the reference to |
the State shall be to the county),
5, 7, 8 (except that the |
jurisdiction to which the tax shall be a debt to
the extent |
indicated in that Section 8 shall be the county), 9 (except as
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to the disposition of taxes and penalties collected), 10, 11, |
12 (except the reference therein to Section 2b of the
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Retailers' Occupation Tax Act), 13 (except that any reference |
to the State
shall mean the county), Section 15, 16,
17, 18, 19 |
and 20 of the Service Occupation Tax Act and Section 3-7 of
the |
Uniform Penalty and Interest Act, as fully as if those |
provisions were
set forth herein.
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Persons subject to any tax imposed under the authority |
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granted in
this subsection may reimburse themselves for their |
serviceman's tax liability
by separately stating the tax as an |
additional charge, which
charge may be stated in combination, |
in a single amount, with State tax
that servicemen are |
authorized to collect under the Service Use Tax Act, in
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accordance with such bracket schedules as the Department may |
prescribe.
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Whenever the Department determines that a refund should be |
made under this
subsection to a claimant instead of issuing a |
credit memorandum, the Department
shall notify the State |
Comptroller, who shall cause the warrant to be drawn
for the |
amount specified, and to the person named, in the notification
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from the Department. The refund shall be paid by the State |
Treasurer out
of the County Public Safety or Transportation |
Retailers' Occupation Fund.
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Nothing in this subsection shall be construed to authorize |
the county
to impose a tax upon the privilege of engaging in |
any business which under
the Constitution of the United States |
may not be made the subject of taxation
by the State.
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(c) The Department shall immediately pay over to the State |
Treasurer, ex
officio,
as trustee, all taxes and penalties |
collected under this Section to be
deposited into the County |
Public Safety or Transportation Retailers'
Occupation Tax |
Fund, which
shall be an unappropriated trust fund held outside |
of the State treasury. On
or before the 25th
day of each |
calendar month, the Department shall prepare and certify to the
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Comptroller the disbursement of stated sums of money
to the |
counties from which retailers have paid
taxes or penalties to |
the Department during the second preceding
calendar month. The |
amount to be paid to each county, and deposited by the
county |
into its special fund created for the purposes of this Section, |
shall
be the amount (not
including credit memoranda) collected |
under this Section during the second
preceding
calendar month |
by the Department plus an amount the Department determines is
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necessary to offset any amounts that were erroneously paid to a |
different
taxing body, and not including (i) an amount equal to |
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the amount of refunds
made
during the second preceding calendar |
month by the Department on behalf of
the county and (ii) any |
amount that the Department determines is
necessary to offset |
any amounts that were payable to a different taxing body
but |
were erroneously paid to the county. Within 10 days after |
receipt by the
Comptroller of the disbursement certification to |
the counties provided for in
this Section to be given to the |
Comptroller by the Department, the Comptroller
shall cause the |
orders to be drawn for the respective amounts in accordance
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with directions contained in the certification.
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In addition to the disbursement required by the preceding |
paragraph, an
allocation shall be made in March of each year to |
each county that received
more than $500,000 in disbursements |
under the preceding paragraph in the
preceding calendar year. |
The allocation shall be in an amount equal to the
average |
monthly distribution made to each such county under the |
preceding
paragraph during the preceding calendar year |
(excluding the 2 months of
highest receipts). The distribution |
made in March of each year subsequent to
the year in which an |
allocation was made pursuant to this paragraph and the
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preceding paragraph shall be reduced by the amount allocated |
and disbursed
under this paragraph in the preceding calendar |
year. The Department shall
prepare and certify to the |
Comptroller for disbursement the allocations made in
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accordance with this paragraph.
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(d) For the purpose of determining the local governmental |
unit whose tax is
applicable, a retail sale by a producer of |
coal or another mineral mined in
Illinois is a sale at retail |
at the place where the coal or other mineral mined
in Illinois |
is extracted from the earth. This paragraph does not apply to |
coal
or another mineral when it is delivered or shipped by the |
seller to the
purchaser
at a point outside Illinois so that the |
sale is exempt under the United States
Constitution as a sale |
in interstate or foreign commerce.
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(e) Nothing in this Section shall be construed to authorize |
a county to
impose a
tax upon the privilege of engaging in any |
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business that under the Constitution
of the United States may |
not be made the subject of taxation by this State.
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(e-5) If a county imposes a tax under this Section, the |
county board may,
by ordinance, discontinue or lower the rate |
of the tax. If the county board
lowers the tax rate or |
discontinues the tax, a referendum must be
held in accordance |
with subsection (a) of this Section in order to increase the
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rate of the tax or to reimpose the discontinued tax.
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(f) Beginning April 1, 1998, the results of any election |
authorizing a
proposition to impose a tax
under this Section or |
effecting a change in the rate of tax, or any ordinance
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lowering the rate or discontinuing the tax,
shall be certified
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by the
county clerk and filed with the Illinois Department of |
Revenue
either (i) on or
before the first day of April, |
whereupon the Department shall proceed to
administer and |
enforce the tax as of the first day of July next following
the |
filing; or (ii)
on or before the first day of October, |
whereupon the
Department shall proceed to administer and |
enforce the tax as of the first
day of January next following |
the filing.
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(g) When certifying the amount of a monthly disbursement to |
a county under
this
Section, the Department shall increase or |
decrease the amounts by an amount
necessary to offset any |
miscalculation of previous disbursements. The offset
amount |
shall be the amount erroneously disbursed within the previous 6 |
months
from the time a miscalculation is discovered.
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(h) This Section may be cited as the "Special County |
Occupation Tax
For Public Safety or Transportation Law".
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(i) For purposes of this Section, "public safety" includes, |
but is not
limited to, crime prevention, detention, fire |
fighting, police, medical,
ambulance, or other emergency
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services. For the purposes of this Section, "transportation" |
includes, but
is not limited to, the construction,
maintenance, |
operation, and improvement of public highways, any other
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purpose for which a county may expend funds under the Illinois |
Highway Code,
and passenger rail transportation.
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