95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB5785


 
Introduced , by Rep. Donald L. Moffitt
 
SYNOPSIS AS INTRODUCED:
 		














55 ILCS 5/5-1006.5









    Amends the  Counties Code concerning the Special County Retailers' Occupation Tax
For Public Safety or Transportation. Authorizes counties to share tax proceeds received for public safety purposes, including proceeds received before the effective date of this amendatory Act,  with any fire protection district located in the county. Effective immediately.
















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FISCAL NOTE ACT MAY APPLY
















 


 


A BILL FOR









 











HB5785

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1
    AN ACT concerning local government.

 
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 Section 
5
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 or Transportation.

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 retail 
13
in the county on the gross receipts from the
sales made in the 
14
course of business to provide revenue to be used exclusively

15
for public safety or transportation purposes in that county, if 
16
a
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 
19
one-quarter percent increments. By resolution, the
county 
20
board may order the proposition to be submitted at any 
21
election.
If the tax is imposed for
transportation purposes for 
22
expenditures for public highways or as
authorized
under the 
23
Illinois Highway Code, the county board must publish notice
of 
 


 






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1
the existence of its long-range highway transportation
plan as 
2
required or described in Section 5-301 of the Illinois
Highway 
3
Code and must make the plan publicly available prior to

4
approval of the ordinance or resolution
imposing the tax. If 
5
the tax is imposed for transportation purposes for
expenditures 
6
for passenger rail transportation, the county board must 
7
publish
notice of the existence of its long-range passenger 
8
rail transportation plan
and
must make the plan publicly 
9
available prior to approval of the ordinance or
resolution 
10
imposing the tax. The county clerk shall certify the
question 
11
to the proper election authority, who
shall submit the 
12
proposition at an election in accordance with the general

13
election law.


14
        (1) The proposition for public safety purposes shall be 
15
    in
substantially the following form:
16
        "To pay for public safety purposes, shall (name of 
17
    county) be authorized to impose an increase on its share of 
18
    local sales taxes by (insert rate)?"
19
        As additional information on the ballot below the 
20
    question shall appear the following:
21
        "This would mean that a consumer would pay an 
22
    additional (insert amount) in sales tax for every $100 of 
23
    tangible personal property bought at retail."


24
        The county board may also opt to establish a sunset 
25
    provision at which time the additional sales tax would 
26
    cease being collected, if not terminated earlier by a vote 
 


 






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    of the county board.  If the county board votes to include a 
2
    sunset provision, the proposition for public safety 
3
    purposes shall be in substantially the following form:
4
        "To pay for public safety purposes, shall (name of 
5
    county) be authorized to impose an increase on its share of 
6
    local sales taxes by (insert rate) for a period not to 
7
    exceed (insert number of years)?"
8
        As additional information on the ballot below the 
9
    question shall appear the following:
10
        "This would mean that a consumer would pay an 
11
    additional (insert amount) in sales tax for every $100 of 
12
    tangible personal property bought at retail. If imposed, 
13
    the additional tax would cease being collected at the end 
14
    of (insert number of years), if not terminated earlier by a 
15
    vote of the county board."



16
        For the purposes of the
paragraph, "public safety 
17
    purposes" means
crime prevention, detention, fire 
18
    fighting, police, medical, ambulance, or
other emergency 
19
    services.


20
        Votes shall be recorded as "Yes" or "No".


21
        (2) The proposition for transportation purposes shall 
22
    be in
substantially
the following form:
23
        "To pay for improvements to roads and other 
24
    transportation purposes, shall (name of county) be 
25
    authorized to impose an increase on its share of local 
26
    sales taxes by (insert rate)?"
 


 






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1
        As additional information on the ballot below the 
2
    question shall appear the following:
3
        "This would mean that a consumer would pay an 
4
    additional (insert amount) in sales tax for every $100 of 
5
    tangible personal property bought at retail."


6
        The county board may also opt to establish a sunset 
7
    provision at which time the additional sales tax would 
8
    cease being collected, if not terminated earlier by a vote 
9
    of the county board.  If the county board votes to include a 
10
    sunset provision, the proposition for transportation 
11
    purposes shall be in substantially the following form:
12
        "To pay for road improvements and other transportation 
13
    purposes, shall (name of county) be authorized to impose an 
14
    increase on its share of local sales taxes by (insert rate) 
15
    for a period not to exceed (insert number of years)?"
16
        As additional information on the ballot below the 
17
    question shall appear the following:
18
        "This would mean that a consumer would pay an 
19
    additional (insert amount) in sales tax for every $100 of 
20
    tangible personal property bought at retail. If imposed, 
21
    the additional tax would cease being collected at the end 
22
    of (insert number of years), if not terminated earlier by a 
23
    vote of the county board."



24
        For the purposes of this paragraph, transportation 
25
    purposes means
construction, maintenance, operation, and 
26
    improvement of
public highways, any other purpose for which 
 


 






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    a county may expend funds under
the Illinois Highway Code, 
2
    and passenger rail transportation.


3
        The votes shall be recorded as "Yes" or "No".

4
    If a majority of the electors voting on
the proposition 
5
vote in favor of it, the county may impose the tax.
 A county 
6
may not submit more than one proposition authorized by this 
7
Section
to the electors at any one time.

8
    This additional tax may not be imposed on the sales of food 
9
for human
consumption that is to be consumed off the premises 
10
where it is sold (other
than alcoholic beverages, soft drinks, 
11
and food which has been prepared for
immediate consumption) and 
12
prescription and non-prescription medicines, drugs,
medical 
13
appliances and insulin, urine testing materials, syringes, and 
14
needles
used by diabetics.  The tax imposed by a county under 
15
this Section and
all civil penalties that may be assessed as an 
16
incident of the tax shall be
collected and enforced by the 
17
Illinois Department of Revenue and deposited
into a special 
18
fund created for that purpose.  The certificate
of registration 
19
that is issued by the Department to a retailer under the

20
Retailers' Occupation Tax Act shall permit the retailer to 
21
engage in a business
that is taxable without registering 
22
separately with the Department under an
ordinance or resolution 
23
under this Section.  The Department has full
power to administer 
24
and enforce this Section, to collect all taxes and
penalties 
25
due under this Section, to dispose of taxes and penalties so

26
collected in the manner provided in this Section, and to 
 


 






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determine
all rights to credit memoranda arising on account of 
2
the erroneous payment of
a tax or penalty under this Section.  
3
In the administration of and compliance
with this Section, the 
4
Department and persons who are subject to this Section
shall 
5
(i) have the same rights, remedies, privileges, immunities, 
6
powers, and
duties, (ii) be subject to the same conditions, 
7
restrictions, limitations,
penalties, and definitions of 
8
terms, and (iii) employ the same modes of
procedure as are 
9
prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f,
1i, 1j,
1k, 1m, 
10
1n,
2 through 2-70 (in respect to all provisions contained in 
11
those Sections
other than the
State rate of tax), 2a, 2b, 2c, 3 
12
(except provisions
relating to
transaction returns and quarter 
13
monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e,
5f,
5g, 5h, 5i, 
14
5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of 
15
the
Retailers' Occupation Tax Act and Section 3-7 of the 
16
Uniform Penalty and
Interest Act as if those provisions were 
17
set forth in this Section.

18
    Persons subject to any tax imposed under the authority 
19
granted in this
Section may reimburse themselves for their 
20
sellers' tax liability by
separately stating the tax as an 
21
additional charge, which charge may be stated
in combination, 
22
in a single amount, with State tax which sellers are required

23
to collect under the Use Tax Act, pursuant to such bracketed 
24
schedules as the
Department may prescribe.

25
    Whenever the Department determines that a refund should be 
26
made under this
Section to a claimant instead of issuing a 
 


 






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credit memorandum, the Department
shall notify the State 
2
Comptroller, who shall cause the order to be drawn for
the 
3
amount specified and to the person named in the notification 
4
from the
Department.  The refund shall be paid by the State 
5
Treasurer out of the County
Public Safety or Transportation 
6
Retailers' Occupation Tax Fund.

7
    (b) If a tax has been imposed under subsection (a), a

8
service occupation tax shall
also be imposed at the same rate 
9
upon all persons engaged, in the county, in
the business
of 
10
making sales of service, who, as an incident to making those 
11
sales of
service, transfer tangible personal property within 
12
the county
as an
incident to a sale of service.
This tax may 
13
not be imposed on sales of food for human consumption that is 
14
to
be consumed off the premises where it is sold (other than 
15
alcoholic beverages,
soft drinks, and food prepared for 
16
immediate consumption) and prescription and
non-prescription 
17
medicines, drugs, medical appliances and insulin, urine

18
testing materials, syringes, and needles used by diabetics.
The 
19
tax imposed under this subsection and all civil penalties that 
20
may be
assessed as an incident thereof shall be collected and 
21
enforced by the
Department of Revenue. The Department has
full 
22
power to
administer and enforce this subsection; to collect all 
23
taxes and penalties
due hereunder; to dispose of taxes and 
24
penalties so collected in the manner
hereinafter provided; and 
25
to determine all rights to credit memoranda
arising on account 
26
of the erroneous payment of tax or penalty hereunder.
In the 
 


 






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administration of, and compliance with this subsection, the

2
Department and persons who are subject to this paragraph shall 
3
(i) have the
same rights, remedies, privileges, immunities, 
4
powers, and duties, (ii) be
subject to the same conditions, 
5
restrictions, limitations, penalties,
exclusions, exemptions, 
6
and definitions of terms, and (iii) employ the same
modes
of 
7
procedure as are prescribed in Sections 2 (except that the

8
reference to State in the definition of supplier maintaining a 
9
place of
business in this State shall mean the county), 2a, 2b, 
10
2c, 3 through
3-50 (in respect to all provisions therein other 
11
than the State rate of
tax), 4 (except that the reference to 
12
the State shall be to the county),
5, 7, 8 (except that the 
13
jurisdiction to which the tax shall be a debt to
the extent 
14
indicated in that Section 8 shall be the county), 9 (except as

15
to the disposition of taxes and penalties collected), 10, 11, 
16
12 (except the reference therein to Section 2b of the

17
Retailers' Occupation Tax Act), 13 (except that any reference 
18
to the State
shall mean the county), Section 15, 16,
17, 18, 19 
19
and 20 of the Service Occupation Tax Act and Section 3-7 of
the 
20
Uniform Penalty and Interest Act, as fully as if those 
21
provisions were
set forth herein.

22
    Persons subject to any tax imposed under the authority 
23
granted in
this subsection may reimburse themselves for their 
24
serviceman's tax liability
by separately stating the tax as an 
25
additional charge, which
charge may be stated in combination, 
26
in a single amount, with State tax
that servicemen are 
 


 






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authorized to collect under the Service Use Tax Act, in

2
accordance with such bracket schedules as the Department may 
3
prescribe.

4
    Whenever the Department determines that a refund should be 
5
made under this
subsection to a claimant instead of issuing a 
6
credit memorandum, the Department
shall notify the State 
7
Comptroller, who shall cause the warrant 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 County Public Safety or Transportation 
11
Retailers' Occupation Fund.

12
    Nothing in this subsection shall be construed to authorize 
13
the county
to impose a tax upon the privilege of engaging in 
14
any business which under
the Constitution of the United States 
15
may not be made the subject of taxation
by the State.

16
    (c) The Department shall immediately pay over to the State 
17
Treasurer, ex
officio,
as trustee, all taxes and penalties 
18
collected under this Section to be
deposited into the County 
19
Public Safety or Transportation Retailers'
Occupation Tax 
20
Fund, which
shall be an unappropriated trust fund held outside 
21
of the State treasury.  On
or before the 25th
day of each 
22
calendar month, the Department shall prepare and certify to the

23
Comptroller the disbursement of stated sums of money
to the 
24
counties from which retailers have paid
taxes or penalties to 
25
the Department during the second preceding
calendar month.  The 
26
amount to be paid to each county, and deposited by the
county 
 


 






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into its special fund created for the purposes of this Section, 
2
shall
be the amount (not
including credit memoranda) collected 
3
under this Section during the second
preceding
calendar month 
4
by the Department plus an amount the Department determines is

5
necessary to offset any amounts that were erroneously paid to a 
6
different
taxing body, and not including (i) an amount equal to 
7
the amount of refunds
made
during the second preceding calendar 
8
month by the Department on behalf of
the county and (ii) any 
9
amount that the Department determines is
necessary to offset 
10
any amounts that were payable to a different taxing body
but 
11
were erroneously paid to the county.  Within 10 days after 
12
receipt by the
Comptroller of the disbursement certification to 
13
the counties provided for in
this Section to be given to the 
14
Comptroller by the Department, the Comptroller
shall cause the 
15
orders to be drawn for the respective amounts in accordance

16
with directions contained in the certification.

17
    In addition to the disbursement required by the preceding 
18
paragraph, an
allocation shall be made in March of each year to 
19
each county that received
more than $500,000 in disbursements 
20
under the preceding paragraph in the
preceding calendar year.  
21
The allocation shall be in an amount equal to the
average 
22
monthly distribution made to each such county under the 
23
preceding
paragraph during the preceding calendar year 
24
(excluding the 2 months of
highest receipts).  The distribution 
25
made in March of each year subsequent to
the year in which an 
26
allocation was made pursuant to this paragraph and the

 


 






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preceding paragraph shall be reduced by the amount allocated 
2
and disbursed
under this paragraph in the preceding calendar 
3
year.  The Department shall
prepare and certify to the 
4
Comptroller for disbursement the allocations made in

5
accordance with this paragraph.

6
    (d) For the purpose of determining the local governmental 
7
unit whose tax is
applicable, a retail sale by a producer of 
8
coal or another mineral mined in
Illinois is a sale at retail 
9
at the place where the coal or other mineral mined
in Illinois 
10
is extracted from the earth.  This paragraph does not apply to 
11
coal
or another mineral when it is delivered or shipped by the 
12
seller to the
purchaser
at a point outside Illinois so that the 
13
sale is exempt under the United States
Constitution as a sale 
14
in interstate or foreign commerce.

15
    (e) Nothing in this Section shall be construed to authorize 
16
a county to
impose a
tax upon the privilege of engaging in any 
17
business that under the Constitution
of the United States may 
18
not be made the subject of taxation by this State.

19
    (e-5) If a county imposes a tax under this Section, the 
20
county board may,
by ordinance, discontinue or lower the rate 
21
of the tax.  If the county board
lowers the tax rate or 
22
discontinues the tax, a referendum must be
held in accordance 
23
with subsection (a) of this Section in order to increase the

24
rate of the tax or to reimpose the discontinued tax.

25
    (f) Beginning April 1, 1998, the results of any election 
26
authorizing a
proposition to impose a tax
under this Section or 
 


 






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effecting a change in the rate of tax, or any ordinance

2
lowering the rate or discontinuing the tax,
shall be certified

3
by the
county clerk and filed with the Illinois Department of 
4
Revenue
either (i) on or
before the first day of April, 
5
whereupon the Department shall proceed to
administer and 
6
enforce the tax as of the first day of July next following
the 
7
filing; or (ii)
on or before the first day of October, 
8
whereupon the
Department shall proceed to administer and 
9
enforce the tax as of the first
day of January next following 
10
the filing.

11
    (g) When certifying the amount of a monthly disbursement to 
12
a county under
this
Section, the Department shall increase or 
13
decrease the amounts by an amount
necessary to offset any 
14
miscalculation of previous disbursements.  The offset
amount 
15
shall be the amount erroneously disbursed within the previous 6 
16
months
from the time a miscalculation is discovered.

17
    (h) This Section may be cited as the "Special County 
18
Occupation Tax
For Public Safety or Transportation Law".

19
    (i) For purposes of this Section, "public safety" includes, 
20
but is not
limited to, crime prevention, detention, fire 
21
fighting, police, medical,
ambulance, or other emergency

22
services. The county may share tax proceeds received under this 
23
Section for public safety purposes, including proceeds 
24
received before the effective date of this amendatory Act of 
25
the 95th General Assembly,  with any fire protection district 
26
located in the county.  For the purposes of this Section, 
 


 






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"transportation" includes, but
is not limited to, the 
2
construction,
maintenance, operation, and improvement of 
3
public highways, any other
purpose for which a county may 
4
expend funds under the Illinois Highway Code,
and passenger 
5
rail transportation.

6
(Source: P.A. 94-781, eff. 5-19-06; 95-474, eff. 1-1-08.)

 

7
    Section 99. Effective date. This Act takes effect upon 
8
becoming law.