093_HB3401
LRB093 09159 MKM 09391 b
1 AN ACT concerning certain taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Counties Code is amended by changing
5 Section 5-1006.5 as follows:
6 (55 ILCS 5/5-1006.5)
7 Sec. 5-1006.5. Special County Retailers' Occupation Tax
8 For Public Safety.
9 (a) The county board of any county may impose a tax upon
10 all persons engaged in the business of selling tangible
11 personal property, other than personal property titled or
12 registered with an agency of this State's government, at
13 retail in the county on the gross receipts from the sales
14 made in the course of business to provide revenue to be used
15 exclusively for public safety purposes in that county, if a
16 proposition for the tax has been submitted to the electors of
17 that county and approved by a majority of those voting on the
18 question. If imposed, this tax shall be imposed only in .25%
19 one-quarter percent increments. By resolution, the county
20 board may order the proposition to be submitted at any
21 election. The county clerk shall certify the question to the
22 proper election authority, who shall submit the proposition
23 at an election in accordance with the general election law.
24 The proposition shall be in substantially the following
25 form:
26 "Shall (name of county) be authorized to impose a
27 public safety tax at the rate of .... upon all persons
28 engaged in the business of selling tangible personal
29 property at retail in the county on gross receipts from
30 the sales made in the course of their business to be used
31 for crime prevention, detention, and other public safety
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1 purposes?"
2 Votes shall be recorded as Yes or No. If a majority of the
3 electors voting on the proposition vote in favor of it, the
4 county may impose the tax.
5 This additional tax may not be imposed on the sales of
6 food for human consumption that is to be consumed off the
7 premises where it is sold (other than alcoholic beverages,
8 soft drinks, and food which has been prepared for immediate
9 consumption) and prescription and non-prescription medicines,
10 drugs, medical appliances and insulin, urine testing
11 materials, syringes, and needles used by diabetics. The tax
12 imposed by a county under this Section and all civil
13 penalties that may be assessed as an incident of the tax
14 shall be collected and enforced by the Illinois Department of
15 Revenue. The certificate of registration that is issued by
16 the Department to a retailer under the Retailers' Occupation
17 Tax Act shall permit the retailer to engage in a business
18 that is taxable without registering separately with the
19 Department under an ordinance or resolution under this
20 Section. The Department has full power to administer and
21 enforce this Section, to collect all taxes and penalties due
22 under this Section, to dispose of taxes and penalties so
23 collected in the manner provided in this Section, and to
24 determine all rights to credit memoranda arising on account
25 of the erroneous payment of a tax or penalty under this
26 Section. In the administration of and compliance with this
27 Section, the Department and persons who are subject to this
28 Section shall (i) have the same rights, remedies, privileges,
29 immunities, powers, and duties, (ii) be subject to the same
30 conditions, restrictions, limitations, penalties, and
31 definitions of terms, and (iii) employ the same modes of
32 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
33 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to
34 all provisions contained in those Sections other than the
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1 State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except
2 provisions relating to transaction returns and quarter
3 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
4 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13
5 of the Retailers' Occupation Tax Act and Section 3-7 of the
6 Uniform Penalty and Interest Act as if those provisions were
7 set forth in this Section.
8 Persons subject to any tax imposed under the authority
9 granted in this Section may reimburse themselves for their
10 sellers' tax liability by separately stating the tax as an
11 additional charge, which charge may be stated in combination,
12 in a single amount, with State tax which sellers are required
13 to collect under the Use Tax Act, pursuant to such bracketed
14 schedules as the Department may prescribe.
15 Whenever the Department determines that a refund should
16 be made under this Section to a claimant instead of issuing a
17 credit memorandum, the Department shall notify the State
18 Comptroller, who shall cause the order to be drawn for the
19 amount specified and to the person named in the notification
20 from the Department. The refund shall be paid by the State
21 Treasurer out of the County Public Safety Retailers'
22 Occupation Tax Fund.
23 (b) If a tax has been imposed under subsection (a), a
24 service occupation tax shall also be imposed at the same rate
25 upon all persons engaged, in the county, in the business of
26 making sales of service, who, as an incident to making those
27 sales of service, transfer tangible personal property within
28 the county as an incident to a sale of service. This tax may
29 not be imposed on sales of food for human consumption that is
30 to be consumed off the premises where it is sold (other than
31 alcoholic beverages, soft drinks, and food prepared for
32 immediate consumption) and prescription and non-prescription
33 medicines, drugs, medical appliances and insulin, urine
34 testing materials, syringes, and needles used by diabetics.
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1 The tax imposed under this subsection and all civil penalties
2 that may be assessed as an incident thereof shall be
3 collected and enforced by the Department of Revenue. The
4 Department has full power to administer and enforce this
5 subsection; to collect all taxes and penalties due hereunder;
6 to dispose of taxes and penalties so collected in the manner
7 hereinafter provided; and to determine all rights to credit
8 memoranda arising on account of the erroneous payment of tax
9 or penalty hereunder. In the administration of, and
10 compliance with this subsection, the Department and persons
11 who are subject to this paragraph shall (i) have the same
12 rights, remedies, privileges, immunities, powers, and duties,
13 (ii) be subject to the same conditions, restrictions,
14 limitations, penalties, exclusions, exemptions, and
15 definitions of terms, and (iii) employ the same modes of
16 procedure as are prescribed in Sections 2 (except that the
17 reference to State in the definition of supplier maintaining
18 a place of business in this State shall mean the county), 2a,
19 2b, 2c, 3 through 3-50 (in respect to all provisions therein
20 other than the State rate of tax), 4 (except that the
21 reference to the State shall be to the county), 5, 7, 8
22 (except that the jurisdiction to which the tax shall be a
23 debt to the extent indicated in that Section 8 shall be the
24 county), 9 (except as to the disposition of taxes and
25 penalties collected), 10, 11, 12 (except the reference
26 therein to Section 2b of the Retailers' Occupation Tax Act),
27 13 (except that any reference to the State shall mean the
28 county), Section 15, 16, 17, 18, 19 and 20 of the Service
29 Occupation Tax Act and Section 3-7 of the Uniform Penalty and
30 Interest Act, as fully as if those provisions were set forth
31 herein.
32 Persons subject to any tax imposed under the authority
33 granted in this subsection may reimburse themselves for their
34 serviceman's tax liability by separately stating the tax as
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1 an additional charge, which charge may be stated in
2 combination, in a single amount, with State tax that
3 servicemen are authorized to collect under the Service Use
4 Tax Act, in accordance with such bracket schedules as the
5 Department may prescribe.
6 Whenever the Department determines that a refund should
7 be made under this subsection to a claimant instead of
8 issuing a credit memorandum, the Department shall notify the
9 State Comptroller, who shall cause the warrant to be drawn
10 for the amount specified, and to the person named, in the
11 notification from the Department. The refund shall be paid
12 by the State Treasurer out of the County Public Safety
13 Retailers' Occupation Fund.
14 Nothing in this subsection shall be construed to
15 authorize the county to impose a tax upon the privilege of
16 engaging in any business which under the Constitution of the
17 United States may not be made the subject of taxation by the
18 State.
19 (c) The Department shall immediately pay over to the
20 State Treasurer, ex officio, as trustee, all taxes and
21 penalties collected under this Section to be deposited into
22 the County Public Safety Retailers' Occupation Tax Fund,
23 which shall be an unappropriated trust fund held outside of
24 the State treasury. On or before the 25th day of each
25 calendar month, the Department shall prepare and certify to
26 the Comptroller the disbursement of stated sums of money to
27 the counties from which retailers have paid taxes or
28 penalties to the Department during the second preceding
29 calendar month. The amount to be paid to each county shall
30 be the amount (not including credit memoranda) collected
31 under this Section during the second preceding calendar month
32 by the Department plus an amount the Department determines is
33 necessary to offset any amounts that were erroneously paid to
34 a different taxing body, and not including (i) an amount
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1 equal to the amount of refunds made during the second
2 preceding calendar month by the Department on behalf of the
3 county and (ii) any amount that the Department determines is
4 necessary to offset any amounts that were payable to a
5 different taxing body but were erroneously paid to the
6 county. Within 10 days after receipt by the Comptroller of
7 the disbursement certification to the counties provided for
8 in this Section to be given to the Comptroller by the
9 Department, the Comptroller shall cause the orders to be
10 drawn for the respective amounts in accordance with
11 directions contained in the certification.
12 In addition to the disbursement required by the preceding
13 paragraph, an allocation shall be made in March of each year
14 to each county that received more than $500,000 in
15 disbursements under the preceding paragraph in the preceding
16 calendar year. The allocation shall be in an amount equal to
17 the average monthly distribution made to each such county
18 under the preceding paragraph during the preceding calendar
19 year (excluding the 2 months of highest receipts). The
20 distribution made in March of each year subsequent to the
21 year in which an allocation was made pursuant to this
22 paragraph and the preceding paragraph shall be reduced by the
23 amount allocated and disbursed under this paragraph in the
24 preceding calendar year. The Department shall prepare and
25 certify to the Comptroller for disbursement the allocations
26 made in accordance with this paragraph.
27 (d) For the purpose of determining the local
28 governmental unit whose tax is applicable, a retail sale by a
29 producer of coal or another mineral mined in Illinois is a
30 sale at retail at the place where the coal or other mineral
31 mined in Illinois is extracted from the earth. This
32 paragraph does not apply to coal or another mineral when it
33 is delivered or shipped by the seller to the purchaser at a
34 point outside Illinois so that the sale is exempt under the
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1 United States Constitution as a sale in interstate or foreign
2 commerce.
3 (e) Nothing in this Section shall be construed to
4 authorize a county to impose a tax upon the privilege of
5 engaging in any business that under the Constitution of the
6 United States may not be made the subject of taxation by this
7 State.
8 (e-5) If a county imposes a tax under this Section, the
9 county board may, by ordinance, discontinue or lower the rate
10 of the tax. If the county board lowers the tax rate or
11 discontinues the tax, a referendum must be held in accordance
12 with subsection (a) of this Section in order to increase the
13 rate of the tax or to reimpose the discontinued tax.
14 (f) Beginning April 1, 1998, the results of any election
15 authorizing a proposition to impose a tax under this Section
16 or effecting a change in the rate of tax, or any ordinance
17 lowering the rate or discontinuing the tax, shall be
18 certified by the county clerk and filed with the Illinois
19 Department of Revenue either (i) on or before the first day
20 of April, whereupon the Department shall proceed to
21 administer and enforce the tax as of the first day of July
22 next following the filing; or (ii) on or before the first day
23 of October, whereupon the Department shall proceed to
24 administer and enforce the tax as of the first day of January
25 next following the filing.
26 (g) When certifying the amount of a monthly disbursement
27 to a county under this Section, the Department shall increase
28 or decrease the amounts by an amount necessary to offset any
29 miscalculation of previous disbursements. The offset amount
30 shall be the amount erroneously disbursed within the previous
31 6 months from the time a miscalculation is discovered.
32 (h) This Section may be cited as the "Special County
33 Occupation Tax For Public Safety Law".
34 (i) For purposes of this Section, "public safety"
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1 includes but is not limited to fire fighting, police,
2 medical, ambulance, or other emergency services.
3 (Source: P.A. 89-107, eff. 1-1-96; 89-718, eff. 3-7-97;
4 90-190, eff. 7-24-97; 90-267, eff. 7-30-97; 90-552, eff.
5 12-12-97; 90-562, eff. 12-16-97; 90-655, eff. 7-30-98;
6 90-689, eff. 7-31-98.)