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1 | AN ACT concerning local government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Counties Code is amended by adding Section | ||||||||||||||||||||||||
5 | 5-1006.7 as follows: | ||||||||||||||||||||||||
6 | (55 ILCS 5/5-1006.7 new) | ||||||||||||||||||||||||
7 | Sec. 5-1006.7. Occupation tax for school grants. | ||||||||||||||||||||||||
8 | (a) The county board of any county may impose a tax upon | ||||||||||||||||||||||||
9 | all persons engaged in the business of selling tangible | ||||||||||||||||||||||||
10 | personal property, other than personal property titled or | ||||||||||||||||||||||||
11 | registered with an agency of this State's government, at retail | ||||||||||||||||||||||||
12 | in the county on the gross receipts from the sales made in the | ||||||||||||||||||||||||
13 | course of business to provide revenue to be used exclusively | ||||||||||||||||||||||||
14 | for grants to school districts in the county for the | ||||||||||||||||||||||||
15 | acquisition, development, construction, reconstruction, | ||||||||||||||||||||||||
16 | rehabilitation, improvement, financing, architectural planning | ||||||||||||||||||||||||
17 | and installation of capital facilities consisting of | ||||||||||||||||||||||||
18 | buildings, structures, and durable equipment, and for the | ||||||||||||||||||||||||
19 | acquisition and improvement of real property and interests in | ||||||||||||||||||||||||
20 | real property required, or expected to be required, in | ||||||||||||||||||||||||
21 | connection therewith. This tax may be imposed only in | ||||||||||||||||||||||||
22 | one-quarter percent increments. | ||||||||||||||||||||||||
23 | The tax may not be imposed until the question of imposing |
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1 | the tax has been submitted to the electors of the county at a | ||||||
2 | regular election and approved by a majority of the electors | ||||||
3 | voting on the question. The county board must certify the | ||||||
4 | question to the proper election authority, which must submit | ||||||
5 | the question at an election in accordance with the election | ||||||
6 | Code. | ||||||
7 | The election authority must submit the question in | ||||||
8 | substantially the following form: | ||||||
9 | Shall (name of county) be authorized to impose a
tax at | ||||||
10 | the rate of (insert rate) upon all persons engaged in the | ||||||
11 | business of selling tangible personal property at retail in | ||||||
12 | the county on gross receipts from the sales made in the | ||||||
13 | course of their business to be used exclusively for grants | ||||||
14 | to school districts in the county for building or improving | ||||||
15 | school facilities? | ||||||
16 | The election authority must record the votes as "Yes" or "No". | ||||||
17 | If a majority of the electors voting on the question vote | ||||||
18 | in the affirmative, then the county may, thereafter, impose the | ||||||
19 | tax.
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20 | This additional tax may not be imposed on the sales of food | ||||||
21 | for human consumption that is to be consumed off the premises | ||||||
22 | where it is sold (other than alcoholic beverages, soft drinks, | ||||||
23 | and food which has been prepared for immediate consumption) and | ||||||
24 | prescription and non-prescription medicines, drugs, medical | ||||||
25 | appliances and insulin, urine testing materials, syringes, and | ||||||
26 | needles used by diabetics. The tax imposed by a county under |
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1 | this Section and all civil penalties that may be assessed as an | ||||||
2 | incident of the tax shall be collected and enforced by the | ||||||
3 | Illinois Department of Revenue and deposited into a special | ||||||
4 | fund created for that purpose. The certificate of registration | ||||||
5 | that is issued by the Department to a retailer under the | ||||||
6 | Retailers' Occupation Tax Act shall permit the retailer to | ||||||
7 | engage in a business that is taxable without registering | ||||||
8 | separately with the Department under an ordinance or resolution | ||||||
9 | under this Section. The Department has full power to administer | ||||||
10 | and enforce this Section, to collect all taxes and penalties | ||||||
11 | due under this Section, to dispose of taxes and penalties so | ||||||
12 | collected in the manner provided in this Section, and to | ||||||
13 | determine all rights to credit memoranda arising on account of | ||||||
14 | the erroneous payment of a tax or penalty under this Section. | ||||||
15 | In the administration of and compliance with this Section, the | ||||||
16 | Department and persons who are subject to this Section shall | ||||||
17 | (i) have the same rights, remedies, privileges, immunities, | ||||||
18 | powers, and duties, (ii) be subject to the same conditions, | ||||||
19 | restrictions, limitations, penalties, and definitions of | ||||||
20 | terms, and (iii) employ the same modes of procedure as are | ||||||
21 | prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, | ||||||
22 | 1n, 2 through 2-70 (in respect to all provisions contained in | ||||||
23 | those Sections other than the State rate of tax), 2a, 2b, 2c, 3 | ||||||
24 | (except provisions relating to transaction returns and quarter | ||||||
25 | monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, | ||||||
26 | 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of |
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1 | the Retailers' Occupation Tax Act and Section 3-7 of the | ||||||
2 | Uniform Penalty and Interest Act as if those provisions were | ||||||
3 | set forth in this Section.
Persons subject to any tax imposed | ||||||
4 | under the authority granted in this Section may reimburse | ||||||
5 | themselves for their sellers' tax liability by separately | ||||||
6 | stating the tax as an additional charge, which charge may be | ||||||
7 | stated in combination, in a single amount, with State tax which | ||||||
8 | sellers are required to collect under the Use Tax Act, pursuant | ||||||
9 | to such bracketed schedules as the Department may prescribe.
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10 | Whenever the Department determines that a refund should be made | ||||||
11 | under this Section to a claimant instead of issuing a credit | ||||||
12 | memorandum, the Department shall notify the State Comptroller, | ||||||
13 | who shall cause the order to be drawn for the amount specified | ||||||
14 | and to the person named in the notification from the | ||||||
15 | Department. The refund shall be paid by the State Treasurer out | ||||||
16 | of the County Public Safety or Transportation Retailers' | ||||||
17 | Occupation Tax Fund.
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18 | (b) If a tax has been imposed under subsection (a), then a | ||||||
19 | service occupation tax must also be imposed at the same rate | ||||||
20 | upon all persons engaged, in the county, in the business of | ||||||
21 | making sales of service, who, as an incident to making those | ||||||
22 | sales of service, transfer tangible personal property within | ||||||
23 | the county as an incident to a sale of service. The proceeds of | ||||||
24 | the tax under this subsection (b) must be used only for the | ||||||
25 | same purposes as the tax under subsection (a). | ||||||
26 | This tax may not be imposed on sales of food for human |
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1 | consumption that is to be consumed off the premises where it is | ||||||
2 | sold (other than alcoholic beverages, soft drinks, and food | ||||||
3 | prepared for immediate consumption) and prescription and | ||||||
4 | non-prescription medicines, drugs, medical appliances and | ||||||
5 | insulin, urine testing materials, syringes, and needles used by | ||||||
6 | diabetics. The tax imposed under this subsection and all civil | ||||||
7 | penalties that may be assessed as an incident thereof shall be | ||||||
8 | collected and enforced by the Department of Revenue. The | ||||||
9 | Department has full power to administer and enforce this | ||||||
10 | subsection; to collect all taxes and penalties due hereunder; | ||||||
11 | to dispose of taxes and penalties so collected in the manner | ||||||
12 | hereinafter provided; and to determine all rights to credit | ||||||
13 | memoranda arising on account of the erroneous payment of tax or | ||||||
14 | penalty hereunder. In the administration of, and compliance | ||||||
15 | with this subsection, the Department and persons who are | ||||||
16 | subject to this paragraph shall (i) have the same rights, | ||||||
17 | remedies, privileges, immunities, powers, and duties, (ii) be | ||||||
18 | subject to the same conditions, restrictions, limitations, | ||||||
19 | penalties, exclusions, exemptions, and definitions of terms, | ||||||
20 | and (iii) employ the same modes of procedure as are prescribed | ||||||
21 | in Sections 2 (except that the reference to State in the | ||||||
22 | definition of supplier maintaining a place of business in this | ||||||
23 | State shall mean the county), 2a, 2b, 2c, 3 through 3-50 (in | ||||||
24 | respect to all provisions therein other than the State rate of | ||||||
25 | tax), 4 (except that the reference to the State shall be to the | ||||||
26 | county), 5, 7, 8 (except that the jurisdiction to which the tax |
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1 | shall be a debt to the extent indicated in that Section 8 shall | ||||||
2 | be the county), 9 (except as to the disposition of taxes and | ||||||
3 | penalties collected), 10, 11, 12 (except the reference therein | ||||||
4 | to Section 2b of the Retailers' Occupation Tax Act), 13 (except | ||||||
5 | that any reference to the State shall mean the county), Section | ||||||
6 | 15, 16, 17, 18, 19 and 20 of the Service Occupation Tax Act and | ||||||
7 | Section 3-7 of the Uniform Penalty and Interest Act, as fully | ||||||
8 | as if those provisions were set forth herein.
Persons subject | ||||||
9 | to any tax imposed under the authority granted in this | ||||||
10 | subsection may reimburse themselves for their serviceman's tax | ||||||
11 | liability by separately stating the tax as an additional | ||||||
12 | charge, which charge may be stated in combination, in a single | ||||||
13 | amount, with State tax that servicemen are authorized to | ||||||
14 | collect under the Service Use Tax Act, in accordance with such | ||||||
15 | bracket schedules as the Department may prescribe.
Whenever the | ||||||
16 | Department determines that a refund should be made under this | ||||||
17 | subsection to a claimant instead of issuing a credit | ||||||
18 | memorandum, the Department shall notify the State Comptroller, | ||||||
19 | who shall cause the warrant to be drawn for the amount | ||||||
20 | specified, and to the person named, in the notification from | ||||||
21 | the Department. The refund shall be paid by the State Treasurer | ||||||
22 | out of the County Public Safety or Transportation Retailers' | ||||||
23 | Occupation Fund.
Nothing in this subsection shall be construed | ||||||
24 | to authorize the county to impose a tax upon the privilege of | ||||||
25 | engaging in any business which under the Constitution of the | ||||||
26 | United States may not be made the subject of taxation by the |
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1 | State. | ||||||
2 | (c) The Department shall immediately pay over to the State | ||||||
3 | Treasurer, ex officio, as trustee, all taxes and penalties | ||||||
4 | collected under this Section to be deposited into the County | ||||||
5 | School Facility Retailers' Occupation Tax Fund, which shall be | ||||||
6 | an unappropriated trust fund held outside of the State | ||||||
7 | treasury. | ||||||
8 | On or before the 25th day of each calendar month, the | ||||||
9 | Department shall prepare and certify to the Comptroller the | ||||||
10 | disbursement of stated sums of money to the counties from which | ||||||
11 | retailers have paid taxes or penalties to the Department during | ||||||
12 | the second preceding calendar month. The amount to be paid to | ||||||
13 | each county, and deposited by the county into its special fund | ||||||
14 | created for the purposes of this Section, must be the amount | ||||||
15 | (not including credit memoranda) collected under this Section | ||||||
16 | during the second preceding calendar month by the Department | ||||||
17 | plus an amount that the Department determines is necessary to | ||||||
18 | offset any amounts that were erroneously paid to a different | ||||||
19 | taxing body and not including (i) an amount equal to the amount | ||||||
20 | of refunds made during the second preceding calendar month by | ||||||
21 | the Department on behalf of the county and (ii) any amount that | ||||||
22 | the Department determines is necessary to offset any amounts | ||||||
23 | that were payable to a different taxing body but were | ||||||
24 | erroneously paid to the county. Within 10 days after receipt by | ||||||
25 | the Comptroller of the disbursement certification to the | ||||||
26 | counties provided for in this Section to be given to the |
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1 | Comptroller by the Department, the Comptroller shall cause the | ||||||
2 | orders to be drawn for the respective amounts in accordance | ||||||
3 | with directions contained in the certification. | ||||||
4 | In addition to the disbursement required by the preceding | ||||||
5 | paragraph, an allocation must be made in March of each year to | ||||||
6 | each county that received more than $500,000 in disbursements | ||||||
7 | under the preceding paragraph in the preceding calendar year. | ||||||
8 | The allocation must be in an amount equal to the average | ||||||
9 | monthly distribution made to each such county under the | ||||||
10 | preceding paragraph during the preceding calendar year | ||||||
11 | (excluding the 2 months of highest receipts). The distribution | ||||||
12 | made in March of each year subsequent to the year in which an | ||||||
13 | allocation was made pursuant to this paragraph and the | ||||||
14 | preceding paragraph must be reduced by the amount allocated and | ||||||
15 | disbursed under this paragraph in the preceding calendar year. | ||||||
16 | The Department shall prepare and certify to the Comptroller for | ||||||
17 | disbursement the allocations made in accordance with this | ||||||
18 | paragraph. | ||||||
19 | (d) For the purpose of determining the local governmental | ||||||
20 | unit whose tax is applicable, a retail sale by a producer of | ||||||
21 | coal or another mineral mined in Illinois is a sale at retail | ||||||
22 | at the place where the coal or other mineral mined in Illinois | ||||||
23 | is extracted from the earth. This paragraph does not apply to | ||||||
24 | coal or another mineral when it is delivered or shipped by the | ||||||
25 | seller to the purchaser at a point outside Illinois so that the | ||||||
26 | sale is exempt under the United States Constitution as a sale |
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1 | in interstate or foreign commerce. | ||||||
2 | (e) Nothing in this Section may be construed to authorize a | ||||||
3 | county to impose a tax upon the privilege of engaging in any | ||||||
4 | business that under the Constitution of the United States may | ||||||
5 | not be made the subject of taxation by this State. | ||||||
6 | (f) If a county imposes a tax under this Section, then the | ||||||
7 | county board may, by ordinance, discontinue or lower the rate | ||||||
8 | of the tax. If the county board lowers the tax rate or | ||||||
9 | discontinues the tax, a referendum must be held in accordance | ||||||
10 | with subsection (a) of this Section in order to increase the | ||||||
11 | rate of the tax or to reimpose the discontinued tax. | ||||||
12 | (g) The results of any election that authorizes a | ||||||
13 | proposition to impose a tax under this Section or to change the | ||||||
14 | rate of the tax, or any ordinance that lowers the rate or | ||||||
15 | discontinues the tax, must be certified by the county clerk and | ||||||
16 | filed with the Illinois Department of Revenue either (i) on or | ||||||
17 | before the first day of April, whereupon the Department shall | ||||||
18 | proceed to administer and enforce the tax as of the first day | ||||||
19 | of July next following the filing; or (ii) on or before the | ||||||
20 | first day of October, whereupon the Department shall proceed to | ||||||
21 | administer and enforce the tax as of the first day of January | ||||||
22 | next following the filing. | ||||||
23 | (g) When certifying the amount of a monthly disbursement to | ||||||
24 | a county under this Section, the Department shall increase or | ||||||
25 | decrease the amounts by an amount necessary to offset any | ||||||
26 | miscalculation of previous disbursements. The offset amount is |
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1 | the amount erroneously disbursed within the previous 6 months | ||||||
2 | from the time a miscalculation is discovered.
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3 | Section 99. Effective date. This Act takes effect upon | ||||||
4 | becoming law.
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