093_HB3401eng HB3401 Engrossed 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% 19one-quarter percentincrements. 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 HB3401 Engrossed -2- LRB093 09159 MKM 09391 b 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 HB3401 Engrossed -3- LRB093 09159 MKM 09391 b 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. HB3401 Engrossed -4- LRB093 09159 MKM 09391 b 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 HB3401 Engrossed -5- LRB093 09159 MKM 09391 b 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 HB3401 Engrossed -6- LRB093 09159 MKM 09391 b 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 HB3401 Engrossed -7- LRB093 09159 MKM 09391 b 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" HB3401 Engrossed -8- LRB093 09159 MKM 09391 b 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.)