SB2652sam001 97TH GENERAL ASSEMBLY

Sen. Toi W. Hutchinson

Filed: 4/24/2012

09700SB2652sam001 LRB097 16175 JWD 68780 a

AMENDMENT TO SENATE BILL 2652

AMENDMENT NO. ______. Amend Senate Bill 2652 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Article may be cited as the Regional Cooperation and Smart Growth in Eastern Will County Act.

Section 5. Findings and purpose.

(1) The purpose of this Act is promoting responsible growth, regional cooperation, a regional approach to land use planning and design standards, revenue sharing among member entities, and preserving and enhancing the quality of life within the District.

(2) The south suburban airport to be sited in eastern Will County, Illinois, will generate development in and around surrounding jurisdictions. This development will have a significant impact upon the region and will provide burdens as well as benefits upon existing infrastructure. These burdens and benefits need to be shared and apportioned equitably.

(3) Cooperation among the surrounding local governments and agencies will support economic development and increase the potential benefits of the airport while limiting the adverse impacts upon the region. Sharing of certain revenues among the municipal members of the District will encourage cooperation, promote a regional approach to land use planning, and assist each member in dealing with adverse impact upon their municipality.

(4) It is also a purpose of this Act to ensure that future land uses within the area designated as the Eastern Will County Development District are compatible with the airport and its operations so that future operations and growth are not unduly constrained.

(5) This Act creates an entity, entitled the Eastern Will County Development District, to implement the purpose of this Act. The District should have adequate powers to achieve its goals and objectives, to be self-supporting, and to raise revenue in order to assist local governments address negative impacts upon infrastructure.

Section 10. Definitions. As used in this Act:

"Airport" or "south suburban airport" means a south suburban airport, as defined by the Federal Aviation Administration, located in eastern Will County, Illinois.

"Airport authority" means an authority created to establish and maintain a south suburban airport located in eastern Will County, Illinois.

"Airport-dependent uses" means uses that are typically found on or near an airport and must, by the nature of their operations, services, or products, be located on an airport or have direct and immediate access to an airport or airport runway. Such uses include, but are not limited to, airport terminals and control towers; airport runways, taxiways, taxi lanes, aircraft parking lanes, and auxiliary roads; hangars; aircraft rescue and firefighting facilities; air cargo storage, but not large distribution facilities; aircraft maintenance, washing, and repair shops; restaurants and hotels within a terminal; airline catering services; express mail and package sorting facilities, aviation fuel farms and services; aircraft testing facilities; airport administrative offices; airport authority offices and maintenance facilities; on-site parking; corporate facilities, including aircraft storage and operations; and any other use deemed to be necessary for the flight operation of the airport.

"Board" means the Board of Directors of the Eastern Will County Development District.

"Compatible land use" means any use of lands, buildings, and structures which is harmonious to the uses and activities being conducted on the adjoining lands and properties and which does not adversely affect or unreasonably impact any use or enjoyment of the adjoined land.

"County" means Will County.

"District" means the Eastern Will County Development District.

"District Land Use Plan" means a written statement of land use policies, goals, and objectives, together with maps, graphs, charts, illustrations or any other form of written or visual communication, as appropriate, that is adopted by the District.

"Member entities" means the villages of Beecher, Crete, Monee, Peotone, University Park, the County of Will, and any new municipality incorporated under the laws of the State of Illinois which becomes a member of the Eastern Will County Development District.

"Member villages" means the villages of Beecher, Crete, Monee, Peotone, and University Park and any new municipality incorporated under the laws of the State of Illinois and located entirely within the boundaries of the Eastern Will County Development District.

Section 15. Creation of District.

(a) The Eastern Will County Development District is created as a political subdivision, body politic, and municipal corporation. The territorial jurisdiction of the District is the rectangular geographic area within the following boundaries: commencing at the southwest corner of Peotone Township and the southern boundary line of Will County, East to the Indiana state line, then north to a line one mile south of the Northern Will-Cook County line, then west to the western boundary line of Green Garden and Peotone townships, then south to the southern boundary of Will County.

(b) The governing and administrative powers of the District are vested in its Board of Directors, consisting of one member appointed by the President of the Village of Beecher with the consent of the Village Board, one member appointed by the President of the Village of Crete with the consent of the Village Board, one member appointed by the President of the Village of Monee with the consent of the Village Board, one member appointed by the President of the Village of Peotone with the consent of the Village Board, one member appointed by the Mayor of the Village of University Park with the consent of the Village Board, one member appointed by the County Executive of Will County with the consent of the County Board, and one member appointed by the governing body of the airport authority.

(c) The members of the Board shall be residents of Will County, Illinois, with their primary residence located within the Eastern Will County Development District.

(d) The terms of the initial appointees shall commence 30 days after the effective date of this Act. The duration of the term of each of the initial appointees shall be determined by lot as follows: one of the appointees shall serve a term expiring on the third Monday in May in the second year following the effective date of this Act; 2 of the appointees shall serve terms expiring on the third Monday in May in the third year following the effective date of this Act; 2 of the appointees shall serve terms expiring on the third Monday in May in the fourth year following the effective date of this Act, and 2 of the appointees shall be appointed to serve terms expiring on the third Monday in May in the fifth year following the effective date of this Act. All successors shall be appointed by the original appointing authority and hold office for a term of 4 years commencing the third Monday in May of the year in which their term commences, except in case of an appointment to fill a vacancy. Vacancies shall be filled for the remainder of the vacated term by the original appointing authority. Each member appointed to the Board shall serve until his or her successor is appointed and qualified. Notwithstanding the time remaining on a specific board member's term, board members shall serve at the pleasure of the appointing authority and a board member may be replaced by the appointing entity during that board member's term of office. A new board member who is appointed to replace a current board member during the current board member's term shall serve the remainder of the current board member's term in office. The appointing authority shall give notice of the appointment of the new board member, including a certified copy of the resolution appointing the new member, to the Board via certified mail. The new member will commence serving at the next meeting of the Board following notice of appointment.

(e) The Board shall annually choose one of its members to serve as Chair and one of its members to serve as Secretary. The Board shall appoint a Treasurer for the District who is not required to be a member of the Board.

(f) Members of the Board shall serve without compensation for their services as members but may be reimbursed for all necessary expenses incurred in connection with the performance of their duties as members.

(g) Within 30 days after appointment of the initial members, the Board shall organize for the transaction of business, select members to serve as Chair and Secretary, and adopt by-laws. Thereafter, the Board shall meet on the call of the Chair or upon written notice by 4 members of the Board. A majority of the members of the Board must be present in person to constitute a quorum for the transaction of business. The affirmative vote of a majority of a quorum of the members shall be necessary for the adoption of any ordinance or resolution. All ordinances and resolutions, before taking effect, shall be in writing, signed by the Chair, and attested by the Secretary.

(h) The Board shall appoint an Executive Director, who is not a member of the Board, who shall hold office at the discretion of the Board. The Executive Director shall be the chief administrative and operational officer of the District, direct and supervise its administrative affairs and general management, perform such other duties as may be prescribed from time to time by the Board, and receive compensation fixed by the Board. The Executive Director shall attend all meetings of the Board, but no action of the Board shall be invalid on account of the absence of the Executive Director from a meeting.

(i) Should a new municipality incorporate within the District, that new municipality shall become a member of the District and shall be entitled to all rights and responsibilities of membership including voting membership upon the Board and revenue sharing, so long as the following criteria are met:

(1) The new municipality is incorporated as a village or city under Illinois law, and

(2) the entire corporate boundaries of the new municipality are within the District at the time of incorporation.

(j) The Board may set, through its by-laws, a process by which other municipalities may become a member of the District. A recommendation by a majority vote of the Board to add an additional member entity shall be considered persuasive by the General Assembly in considering an amendment to this Act to include the additional municipality.

Section 20. Administration. The District has the authority to establish a budget, raise revenue for administration, and retain staff, agents, and consultants to carry out planning, development review, and other duties and exercise all other powers incidental, necessary, convenient, or desirable to carry out and effectuate the powers granted in this Act. Without limitation, the District may enter into intergovernmental agreements under the Intergovernmental Cooperation Act, engage the services of the Illinois Finance Authority, sue and be sued, have and use a corporate seal, designate a fiscal year, and enter into contracts and leases.

Section 25. Planning. The District shall adopt an overall District Land Use Plan that identifies likely key development areas within the airport environs and lays the foundation for design and development standards and development review in that area. The District Land Use Plan is to be prepared by staff and consultants. Key elements shall include open space, transportation needs, compatibility of uses, and noise mitigation. Preparation of the District Land Use Plan shall include an opportunity for input from the governing body of each township with land within the District, and those Illinois cities and villages having a statutory planning area within the District boundaries. Prior to final approval of the District Land Use Plan by the Board, the Board shall hold a public hearing, pursuant to public notice of not less than 5 days and not more than 20 days, for the purpose of providing an opportunity for input by these townships and municipalities and the public.

The District Land Use Plan shall be transmitted to the governing bodies of the member villages and Will County for review and consideration. The District Land Use Plan shall not become effective until the governing bodies of Will County and of each member village of the District has approved the plan. However, approval of the District Land Use Plan shall not be unreasonably withheld. Should any member village fail to approve or reject the District Land Use Plan for a period greater than 90 days after receipt of the plan from the District, that failure to act shall be deemed to be an approval of the District Land Use Plan. In the event that a member village shall reject the District Land Use Plan, that member village shall provide written notice of the rejection of the plan to the District. Said rejection notice shall include the specific reasons for said rejection of the District Land Use Plan. The District and its member villages and Will County shall make good faith efforts to come to an agreement regarding the District Land Use Plan. It shall be public policy that a District Land Use Plan be approved by the members of the District in order that the District may effectively perform its statutory mission.

The District Land Use Plan shall cover all territory within the District, including land uses within the member villages, focusing particularly on peripheral properties that may be directly affected by airport-related development.

The District Land Use Plan shall be reviewed and revised every 5 years, or at such times as may be deemed necessary by a majority vote of the Board, to reflect recent developments, annexations, and changing land use needs within the region.

Section 30. Design and development standards and development review. After adopting a District Land Use Plan, the District shall promulgate design and development standards. The design and development standards shall establish baseline requirements within the District in order to ensure that baseline design and development standards are consistent throughout the District. The District shall work with each member entity to encourage that the member villages and county shall adopt said baseline design and development standards.

The District shall review the design and development standards of each member village and of Will County and the District shall certify that said member village or county standards conform to the District's baseline design and development standards. Notwithstanding adoption by the District of design and development standards, any member village or County may adopt land use regulations that are more stringent than those of the District.

Development applications shall be handled by the jurisdiction within which the project is located. The host jurisdiction shall review the application, applying the District's design and development standards, in addition to any other normal development requirements. The host jurisdiction shall forward the development application to the District for comment and certification. The District shall review the application and make specific findings regarding the impact of the project and determinations regarding mitigation of negative impact.

The certification process shall be determined by the Board and shall require a finding by a majority of the Board that a proposed development conforms to the District Land Use Plan, conforms to the District's design and development standards, and has adequately addressed the need to mitigate negative impact upon regional infrastructure in order for the District to make a positive finding. If the District finds that the proposed development satisfies the preceding criteria, the District shall notify the affected municipality that the District has reached a positive finding regarding the proposed development. The District shall issue a Certificate of Conformance to the host jurisdiction as evidence of the positive finding.

If any member entity shall object to a proposed development, that development shall be subject to a review process to be determined by the Board that shall require a two-thirds majority of the Board for a positive finding and issuance of a Certificate of Conformance.

If the District makes a finding that a proposed development fails to conform to the District Land Use Plan, fails to satisfy the applicable design and development standards, or fails to adequately address the need to mitigate negative impact upon regional infrastructure, the District shall notify the affected municipality of the District's negative finding. A negative finding by the District shall trigger a requirement that the affected host jurisdiction reach an extraordinary majority within their approval process in order to approve the proposed development. If a municipality should approve a development by an extraordinary majority and that development has failed to cure the defects that resulted in a negative finding by the District, then the proposed development shall be deemed a non-conforming development.

The District shall act in a timely manner in reviewing development proposals. After this timely review, the District shall convey, in writing, to the host jurisdiction the District's certification of a positive finding or a negative finding regarding the proposed development. A negative finding shall include the reasons for the negative finding and suggestions for ways to cure the negative aspects of the proposed development.

The District's authority is subject to all pre-annexation or other governmental agreements of the member villages and county in existence on the effective date of this Act.

If land in the District is annexed into a member village, the District shall continue to have development review power over that property as set forth in this Section and the design and development standards shall continue to apply. It shall be the policy of the District that when development is proposed in any unincorporated area, the District shall encourage, and assist in, annexation to an appropriate municipality.

Notwithstanding any other provision of this Section, undeveloped land within each member village on the effective date of this Act that has not received development approval or has not been the subject of a pre-existing annexation or development agreement must comply with uniform airport noise and safety and hazard mitigation land use regulations promulgated by the District, the airport authority, or other governmental agencies.

Building code and zoning enforcement authority shall be exercised by the member village in which the property is located and shall be exercised by the County if the property is not located in a member village.

The review and certification authority of the District shall be limited to non-residential development within the District, except the District may require notice of all proposed development for the purpose of determining consistency with the District Land Use Plan. Airport-dependent uses on land owned by the airport authority shall be exempt from the District's review and certification process.

Section 35. Land acquisition. The District may acquire by purchase or gift and hold or dispose of real or personal property or rights or interests therein. The District may acquire property from willing sellers, but the District may not exercise the power of eminent domain. Prior to the acquisition of real property, the District shall provide 30 days' notice to the airport authority in order that the airport authority may make a determination that the land acquisition will not hinder any airport uses or future expansion.

Section 40. Airport noise monitoring, mitigation, and enforcement programs. Appropriate notations, in a form to be determined by the District, shall be required on all property deeds of land within the District that are within delineated noise impacted areas as defined by the airport authority.

The District may act as a representative of the member villages in discussing noise issues and cooperative mitigation measures with the airport authority and the Federal Aviation Administration.

Section 45. Economic development and marketing. The District may market and promote economic development activities in cooperation with the County, member villages, and other agencies. The District may help fund economic development activities by the County, villages, townships, and other entities. The District may seek grants, loans, or other financing opportunities to promote its planning and economic development mission or for operations.

Section 50. Infrastructure and service mitigation fees. The District may impose infrastructure and service mitigation fees on new industrial and commercial development within the District to pay for infrastructure and services necessitated by that development. New industrial and commercial development shall be industrial and commercial property that is developed, as evidenced by an application for building permit, within the District, after the effective date of this Act.

Section 55. Property taxes. The District may levy ad valorem property taxes upon all new industrial and commercial taxable property in the District. New industrial and commercial property shall be property that is developed, as evidenced by an application for building permit within the District, after the effective date of this Act. Proceeds shall be used for the administrative and operating expenses of the District, to carry out planning and development review functions, and to fund infrastructure improvements within the District.

Section 60. Use and occupation taxes.

(a) The District shall not have the authority to levy taxes for any purpose, except as provided in subsections (b), (c), (d), (e), and (f).

(b) By ordinance the District shall, as soon as practicable from the effective date of this Act, impose an occupation tax upon all persons engaged within the corporate limits of the District in the business of renting, leasing, or letting rooms in a hotel, as defined in the Hotel Operators' Occupation Tax Act, at a rate of 2.5% of the gross rental receipts from the renting, leasing, or letting of rooms within the District, excluding, however, from gross rental receipts the proceeds of renting, leasing, or letting to permanent residents of a hotel as defined in that Act. Gross rental receipts shall not include charges that are added on account of the liability arising from any tax imposed by the State or any governmental agency on the occupation of renting, leasing or letting rooms in a hotel.

The tax imposed by the District under this subsection and all civil penalties that may be assessed as an incident to that tax shall be collected and enforced by the Illinois Department of Revenue. The certificate of registration that is issued by the Department to a lessor under the Hotel Operators' Occupation Tax Act shall permit that registrant to engage in a business that is taxable under any ordinance enacted under this subsection without registering separately with the Department under that ordinance or under this subsection. The Department shall have full power to administer and enforce this subsection, to collect all taxes and penalties due under this subsection, to dispose of taxes and penalties so collected in the manner provided in this subsection, and to determine all rights to memoranda arising on account of the erroneous payment of tax or penalty under this subsection. In the administration of, and compliance with, this subsection, the Department and persons who are subject to this subsection shall have the same rights, remedies, privileges, powers, and duties, shall be subject to the same conditions, restrictions, limitations, penalties, and definitions of terms, and shall employ the same modes of procedure as are prescribed in the Hotel Operators' Occupation Tax Act (except where the Act is inconsistent with this subsection), as fully as the Act were set out in this subsection.

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 a warrant 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.

Persons subject to any tax under the authority imposed in this subsection may reimburse themselves for their tax liability for that tax by separately stating that tax as an additional charge, which charge may be stated in combination, in a single amount, with State taxes imposed under the Hotel Operators' Occupation Tax Act and the municipal tax imposed under Section 8-3-13 of the Illinois Municipal Code.

The person filing the return shall, at the time of filing the return, pay to the Department the amount of the tax, less a discount of 2.1% or $25 per calendar year, whichever is greater, which is allowed to reimburse the operator for the expenses incurred in keeping records, preparing and filing returns, remitting the tax, and supplying data to the Department on request.

The Department shall forthwith pay over to the State Treasurer, ex officio, as trustee for the District, all taxes and penalties collected under this subsection for deposit into a trust fund held outside the State Treasury. On or before the 25th day of each calendar month, the Department shall certify to the Comptroller the amounts to be paid, which shall be the amounts (not including credit memoranda) collected under this subsection during the second preceding calendar month by the Department, less any amounts determined by the Department to be necessary for payment of refunds.

A certified copy of any ordinance imposing or discontinuing a tax under this subsection or effecting a change in the rate of that tax shall be filed with the Illinois Department of Revenue, whereupon the Department shall proceed to administer and enforce this subsection on behalf of the District as of the first day of the third calendar month following the date of filing.

(c) By ordinance the District shall, as soon as practicable after the effective date of this Act, impose a tax upon all persons engaged in the business of renting automobiles in the District at the rate of 6% of the gross receipts from that business, except that no tax shall be imposed on the business of renting automobiles for use as taxicabs or in livery service. The tax imposed under this subsection and all civil penalties that may be assessed as an incident to that tax shall be collected and enforced by the Illinois Department of Revenue. The certificate of registration issued by the Department to a retailer under the Retailers' Occupation Tax Act or under the Automobile Renting Occupation and Use Tax Act shall permit that person to engage in a business that is taxable under any ordinance enacted under this subsection without registering separately with the Department under that ordinance or under this subsection. The Department shall have full power to administer and enforce this subsection, to collect all taxes and penalties due under this subsection, to dispose of taxes and penalties so collected in the manner provided in this subsection, and to determine all rights to credit memoranda arising on account of the erroneous payment of tax or penalty under this subsection. In the administration of and compliance with this subsection, the Department and persons who are subject to this subsection shall have the same rights, remedies, privileges, immunities, powers, and duties, be subject to the same conditions, restrictions, limitations, penalties, and definitions of terms, and employ the same modes of procedure as are as the Department may prescribe.

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 prescribed in Sections 2 and 3 (in respect to all provisions of those Sections other than the State rate of tax; and in respect to the provisions of the Retailers' Occupation Tax Act referred to in those Sections, except as to the disposition of taxes and penalties collected, except for the provision allowing retailers a deduction from the tax to cover certain costs, and except that credit memoranda issued under this subsection may not be used to discharge any State tax liability) of the Automobile Renting Occupation and Use Tax Act, as fully as if provisions contained in those Sections of that Act were set forth in this subsection.

Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their tax liability under this subsection by separately stating that tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax that sellers are required to collect under the Automobile Renting Occupation and Use Tax Act, pursuant to bracket schedules as the Department may prescribe. 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 a warrant 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.

The Department shall forthwith pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected under this subsection for deposit into a trust fund held outside the State Treasury. On or before the 25th day of each calendar month, the Department shall certify to the Comptroller the amounts to be paid under this Section (not including credit memoranda) or collected under this subsection during the second preceding calendar month by the Department, less any amount determined by the Department to be necessary for payment of refunds. Within 10 days after receipt by the Comptroller of the Department's certification, the Comptroller shall cause the orders to be drawn for such amounts, and the Treasurer shall administer those amounts.

Nothing in this subsection authorizes the District to impose a tax upon the privilege of engaging in any business that under the Constitution of the United States may not be made the subject of taxation by this State.

A certified copy of any ordinance imposing or discontinuing a tax under this subsection or effecting a change in the rate of that tax shall be filed with the Illinois Department of Revenue, whereupon the Department shall proceed to administer and enforce this subsection on behalf of the District as of the first day of the third calendar month following the date of filing.

(d) By ordinance the District shall, as soon as practicable after the effective date of this Act, impose a tax upon the privilege of using in the District an automobile that is rented from a rentor outside Illinois and is titled or registered with an agency of this State's government at a rate of 6% of the rental price of that automobile, except that no tax shall be imposed on the privilege of using automobiles rented for use as taxicabs or in livery service. The tax shall be collected from persons whose Illinois address for titling or registration purposes is given as being in the District. The tax shall be collected by the Department of Revenue for the District. The tax must be paid to the State or an exemption determination must be obtained from the Department of Revenue before the title or certificate of registration for the property may be issued. The tax or proof of exemption may be transmitted to the Department by way of the State agency with which or State officer with whom the tangible personal property must be titled or registered if the Department and that agency or State officer determine that this procedure will expedite the processing of applications for title or registration.

The Department shall have full power to administer and enforce this subsection, to collect all taxes, penalties, and interest due under this subsection, to dispose of taxes, penalties, and interest so collected in the manner provided in this subsection, and to determine all rights to credit memoranda or refunds arising on account of the erroneous payment of tax, penalty, or interest under this subsection. In the administration of and compliance with this subsection, the Department and persons who are subject to this subsection shall have the same rights, remedies, privileges, immunities, powers, and duties, be subject to the same conditions, restrictions, limitations, penalties, and definitions of terms, and employ the same modes of procedure as are prescribed in Sections 2 and 4 (except provisions pertaining to the State rate of tax; and in respect to the provisions of the Use Tax Act referred to in that Section, except provisions concerning collection or refunding of the tax by retailers, except the provisions of Section 19 pertaining to claims by retailers, except the last paragraph concerning refunds, and except that credit memoranda issued under this subsection may not be used to discharge any State tax liability) of the Automobile Renting Occupation and Use Tax Act, as fully as if provisions contained in those Sections of that Act were set forth in this subsection.

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 a warrant 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.

The Department shall forthwith pay over to the State Treasurer, ex officio, as trustee, all taxes, penalties, and interest collected under this subsection for deposit into a trust fund held outside the State Treasury. On or before the 25th day of each calendar month, the Department shall certify to the State Comptroller the amounts to be paid, which shall be the amounts (not including credit memoranda) collected under this subsection during the second preceding calendar month by the Department, less any amounts determined by the Department to be necessary for payment of refunds. Within 10 days after receipt by the State Comptroller of the Department's certification, the Comptroller shall cause the orders to be drawn for such amounts, and the Treasurer shall administer those amounts.

A certified copy of any ordinance imposing or discontinuing a tax or effecting a change in the rate of that tax shall be filed with the Illinois Department of Revenue, whereupon the Department shall proceed to administer and enforce this subsection on behalf of the District as of the first day of the third calendar month following the date of filing.

(f) By ordinance the District shall, as soon as practicable after the effective date of this Act, impose an occupation tax on all persons, other than a governmental agency, engaged in the business of providing ground transportation for hire to passengers in the District at a rate of (i) $2 per taxi or livery vehicle departure with passengers for hire from commercial service airports in the District, (ii) for each departure with passengers for hire from a commercial service airport in the District in a bus or van operated by a person other than a person described in item (iii): $9 per bus or van with a capacity of one to 12 passengers, $18 per bus or van with a capacity of 13 to 24 passengers, and $27 per bus or van with a capacity of over 24 passengers, and (iii) for each departure with passengers for hire from a commercial service airport in the District in a bus or van operated by a person regulated by the Interstate Commerce Commission or Illinois Commerce Commission, operating scheduled service from the airport, and charging fares on a per passenger basis: $1 per passenger for hire in each bus or van. The term "commercial service airport" means the south suburban airport as defined by this Act.

In the ordinance imposing the tax, the District may provide for the administration and enforcement of the tax and the collection of the tax from persons subject to the tax as the District determines to be necessary or practicable for the effective administration of the tax. The District may enter into agreements as it deems appropriate with any governmental agency providing for that agency to act as the District's agent to collect the tax.

In the ordinance imposing the tax, the District may designate a method or methods for persons subject to the tax to reimburse themselves for the tax liability arising under the ordinance (i) by separately stating the full amount of the tax liability as an additional charge to passengers departing the airports, (ii) by separately stating one-half of the tax liability as an additional charge to both passengers departing from and to passengers arriving at the airports, or (iii) by some other method determined by the District.

All taxes, penalties, and interest collected under any ordinance adopted under this subsection, less any amounts determined to be necessary for the payment of refunds, shall be paid forthwith to the State Treasurer, ex officio, for disbursement.

Section 65. Initial funding. The member entities and the State of Illinois shall provide funding for the first 3 years of the District's expenses pursuant to the following formula:

(i) Each member entity shall contribute to the District a sum equal to $2 per person for each resident of that member entity, as determined by the most recent census, residing within the District per annum for 3 consecutive years. The total of this annual contribution shall be deemed the Local Contribution; and

(ii) The State of Illinois shall provide matching funds to the District in an amount equal to the Local Contribution for 3 consecutive years.

Section 70. Special assessments. The District may levy, assess, and collect special assessments, except with respect to property that is not subject to special assessments, on new industrial and commercial development. New industrial and commercial development shall be industrial and commercial property that is developed, as evidenced by an application for building permit, within the District, after the effective date of this Act.

Section 75. Revenue Bonds. The District may borrow money from the United States Government or an agency thereof, or from any other public or private source, for the purposes of the District and, as evidence thereof, may issue its revenue bonds payable solely from the revenue from the operation of the District and any other funds available to the District for such purposes. These bonds may be issued with maturities not exceeding 40 years from the date of the bonds, and in such amounts as may be necessary to provide sufficient funds, together with interest, for the purposes of the District. These bonds shall bear interest at a rate not more than the maximum rate authorized by the Bond Authorization Act, payable semi-annually, may be made registerable as to principal, and may be made payable and callable as provided on any interest payment date at a price of par and accrued interest under such terms and conditions as may be fixed by the ordinance authorizing the issuance of the bonds. Bonds issued under this Section are negotiable instruments. They shall be executed by the Chair and members of the Board, attested by the Secretary, and shall be sealed with the corporate seal of the District. In case any Board member or officer whose signature appears on the bonds or coupons ceases to hold that office before the bonds are delivered, such officer's signature shall nevertheless be valid and sufficient for all purposes as though the officer had remained in office until the bonds were delivered. The bonds shall be sold in such manner and upon such terms as the Board shall determine, except that the selling price shall be such that the interest cost to the District of the proceeds of the bonds shall not exceed the maximum rate authorized by the Bond Authorization Act, payable semi-annually, computed to maturity according to the standard table of bond values. The ordinance shall fix the amount of the revenue bonds proposed to be issued, the maturity or maturities, the interest rate, which shall not exceed the maximum rate authorized by the Bond Authorization Act, and all the details in connection with the bonds. The ordinance may contain such covenants and restrictions upon the issuance of additional revenue bonds thereafter, which shall share equally in the revenue of the District, as may be deemed necessary or advisable for the assurance of the payment of the bonds first issued. The District may also provide in the ordinance authorizing the issuance of bonds under this Section that the bonds, or such ones thereof may be specified, shall, to the extent and manner prescribed, be subordinated and be junior in standing, with respect to the payment of principal and interest and the security thereof, to such other bonds as are designated in the ordinance. The ordinance shall pledge the revenue derived from the operations of the District for the cost of paying the cost and operation of the District, and, as applicable, providing adequate depreciation funds, and paying the principal of and interest on the bonds of the District issued under this Section.

Section 80. Fees and charges. The District may levy, assess, and collect fees and charges for services as it deems appropriate.

Section 85. Loans, grants, voluntary contributions and appropriations. The District may accept loans, grants, voluntary contributions, or appropriations of money or materials or property of any kind from a federal or State agency or officer, a unit of local government, or a private person or entity.

Section 90. Revenue sharing. The District, member villages, and county may share tax revenues subject to the following restrictions:

(i) District-wide use and occupation taxes are not subject to revenue sharing.

(ii) Funds generated by the existing rates of the member villages and the county are not subject to revenue sharing; and

(iii) Taxes imposed by other entities are not subject to revenue sharing.

The member entities shall share certain revenue generated within the District for new commercial and industrial development occurring after the effective date of this legislation. The amount of revenue subject to revenue sharing is as follows: (i) one-half of the corporate ad valorem property tax on new commercial and industrial development within the District shall be shared among the member entities, up to a limit of the first 0.2500 of the member entity's corporate levy, and (ii) one-half of any new local sales tax shall be shared among the member entities. The first half of the revenue from new ad valorem property taxes on new commercial and industrial development shall be retained by the host community and the second half of this revenue shall be distributed in one-sixth shares to the 6 member entities. The first half of any new sales taxes within the District shall be retained by the host community and the second half of this revenue shall be distributed in one-sixth shares to the 6 member entities. Should any additional municipalities become member villages, the distribution formula shall be amended to provide for equal shares of shared revenue for each member entity.

Existing and future ad valorem property tax proceeds for all taxing bodies, except the member entities, shall remain with the entity that assessed them.

Should a member entity offer an incentive for development in the form of a tax rebate, the rebate shall not include funds that are subject to revenue sharing unless the entity offering the incentive reimburses the other member entity entitled to receive revenue sharing for lost revenue, or the entitled members waive their right to reimbursement for lost revenue as evidenced by an intergovernmental agreement. Establishment of any new or expanded Tax Increment Financing districts within the District shall be subject to the revenue sharing requirements and restrictions of this Act.

Section 95. Infrastructure improvements. The District does not have independent authority to directly undertake infrastructure improvements, such as roads and water and sewer lines. However, the District may pass through funds it collects under this Act to other entities, such as the Illinois Department of Transportation, the county, townships, or villages. These funds shall be used to undertake infrastructure improvements, off-airport, according to a capital improvement plan approved by the Board or upon a finding of a majority of the Board that such improvements promote economic development within the District, provide community services or amenities, or help advance or realize other purposes for which the District was created.

Section 100. Annexation. Property within the District that is unincorporated on the effective date of this Act may be annexed by a member village in accordance with State law; however, the District shall continue to have review and approval authority with respect to that property under Section 30.

Section 900. The Illinois Finance Authority Act is amended by changing Section 820-50 as follows:

(20 ILCS 3501/820-50)

Sec. 820-50. Pledge of Funds by Units of Local Government.

(a) Pledge of Funds. Any unit of local government which receives funds from the Department of Revenue, including without limitation funds received pursuant to Sections 8-11-1, 8-11-1.4, 8-11-5 or 8-11-6 of the Illinois Municipal Code, the Home Rule County Retailers' Occupation Tax Act, the Home Rule County Service Occupation Tax Act, Sections 25.05-2, 25.05-3 or 25.05-10 of "An Act to revise the law in relation to counties", Section 5.01 of the Local Mass Transit District Act, Section 4.03 of the Regional Transportation Authority Act, Sections 2 or 12 of the State Revenue Sharing Act, Section 60 of the Regional Cooperation and Smart Growth in Eastern Will County Act, or from the Department of Transportation pursuant to Section 8 of the Motor Fuel Tax Law, or from the State Superintendent of Education (directly or indirectly through regional superintendents of schools) pursuant to Article 18 of the School Code, or any unit of government which receives other funds which are at any time in the custody of the State Treasurer, the State Comptroller, the Department of Revenue, the Department of Transportation or the State Superintendent of Education may by appropriate proceedings, pledge to the Authority or any entity acting on behalf of the Authority (including, without limitation, any trustee), any or all of such receipts to the extent that such receipts are necessary to provide revenues to pay the principal of, premium, if any, and interest on, and other fees related to, or to secure, any of the local government securities of such unit of local government which have been sold or delivered to the Authority or its designee or to pay lease rental payments to be made by such unit of local government to the extent that such lease rental payments secure the payment of the principal of, premium, if any, and interest on, and other fees related to, any local government securities which have been sold or delivered to the Authority or its designee. Any pledge of such receipts (or any portion thereof) shall constitute a first and prior lien thereon and shall be binding from the time the pledge is made.

(b) Direct Payment of Pledged Receipts. Any such unit of local government may, by such proceedings, direct that all or any of such pledged receipts payable to such unit of local government be paid directly to the Authority or such other entity (including, without limitation, any trustee) for the purpose of paying the principal of, premium, if any, and interest on, and fees relating to, such local government securities or for the purpose of paying such lease rental payments to the extent necessary to pay the principal of, premium, if any, and interest on, and other fees related to, such local government securities secured by such lease rental payments. Upon receipt of a certified copy of such proceedings by the State Treasurer, the State Comptroller, the Department of Revenue, the Department of Transportation or the State Superintendent of Education, as the case may be, such Department or State Superintendent shall direct the State Comptroller and State Treasurer to pay to, or on behalf of, the Authority or such other entity (including, without limitation, any trustee) all or such portion of the pledged receipts from the Department of Revenue, or the Department of Transportation or the State Superintendent of Education (directly or indirectly through regional superintendents of schools), as the case may be, sufficient to pay the principal of and premium, if any, and interest on, and other fees related to, the local governmental securities for which the pledge was made or to pay such lease rental payments securing such local government securities for which the pledge was made. The proceedings shall constitute authorization for such a directive to the State Comptroller to cause orders to be drawn and to the State Treasurer to pay in accordance with such directive. To the extent that the Authority or its designee notifies the Department of Revenue, the Department of Transportation or the State Superintendent of Education, as the case may be, that the unit of local government has previously paid to the Authority or its designee the amount of any principal, premium, interest and fees payable from such pledged receipts, the State Comptroller shall cause orders to be drawn and the State Treasurer shall pay such pledged receipts to the unit of local government as if they were not pledged receipts. To the extent that such receipts are pledged and paid to the Authority or such other entity, any taxes which have been levied or fees or charges assessed pursuant to law on account of the issuance of such local government securities shall be paid to the unit of local government and may be used for the purposes for which the pledged receipts would have been used.

(c) Payment of Pledged Receipts upon Default. Any such unit of local government may, by such proceedings, direct that such pledged receipts payable to such unit of local government be paid to the Authority or such other entity (including, without limitation, any trustee) upon a default in the payment of any principal of, premium, if any, or interest on, or fees relating to, any of the local government securities of such unit of local government which have been sold or delivered to the Authority or its designee or any of the local government securities which have been sold or delivered to the Authority or its designee and which are secured by such lease rental payments. If such local governmental security is in default as to the payment of principal thereof, premium, if any, or interest thereon, or fees relating thereto, to the extent that the State Treasurer, the State Comptroller, the Department of Revenue, the Department of Transportation or the State Superintendent of Education (directly or indirectly through regional superintendents of schools) shall be the custodian at any time of any other available funds or moneys pledged to the payment of such local government securities or such lease rental payments securing such local government securities pursuant to this Section and due or payable to such a unit of local government at any time subsequent to written notice to the State Comptroller and State Treasurer from the Authority or any entity acting on behalf of the Authority (including, without limitation, any trustee) to the effect that such unit of local government has not paid or is in default as to payment of the principal of, premium, if any, or interest on, or fees relating to, any local government security sold or delivered to the Authority or any such entity (including, without limitation, any trustee) or has not paid or is in default as to the payment of such lease rental payments securing the payment of the principal of, premium, if any, or interest on, or other fees relating to, any local government security sold or delivered to the Authority or such other entity (including, without limitation, any trustee):

(i) The State Comptroller and the State Treasurer shall withhold the payment of such funds or moneys from such unit of local government until the amount of such principal, premium, if any, interest or fees then due and unpaid has been paid to the Authority or any such entity (including, without limitation, any trustee), or the State Comptroller and the State Treasurer have been advised that arrangements, satisfactory to the Authority or such entity, have been made for the payment of such principal, premium, if any, interest and fees; and

(ii) Within 10 days after a demand for payment by the Authority or such entity given to such unit of local government, the State Treasurer and the State Comptroller, the State Treasurer shall pay such funds or moneys as are legally available therefor to the Authority or such entity for the payment of principal of, premium, if any, or interest on, or fees relating to, such local government securities. The Authority or any such entity may carry out this Section and exercise all the rights, remedies and provisions provided or referred to in this Section.

(d) Remedies. Upon the sale or delivery of any local government securities of the Authority or its designee, the local government which issued such local government securities shall be deemed to have agreed that upon its failure to pay interest or premium, if any, on, or principal of, or fees relating to, the local government securities sold or delivered to the Authority or any entity acting on behalf of the Authority (including, without limitation, any trustee) when payable, all statutory defenses to nonpayment are thereby waived. Upon a default in payment of principal of or interest on any local government securities issued by a unit of local government and sold or delivered to the Authority or its designee, and upon demand on the unit of local government for payment, if the local government securities are payable from property taxes and funds are not legally available in the treasury of the unit of local government to make payment, an action in mandamus for the levy of a tax by the unit of local government to pay the principal of or interest on the local government securities shall lie, and the Authority or such entity shall be constituted a holder or owner of the local government securities as being in default. Upon the occurrence of any failure or default with respect to any local government securities issued by a unit of local government, the Authority or such entity may thereupon avail itself of all remedies, rights and provisions of law applicable in the circumstances, and the failure to exercise or exert any rights or remedies within a time or period provided by law may not be raised as a defense by the unit of local government.

(Source: P.A. 93-205, eff. 1-1-04.)

Section 905. The State Officers and Employees Money Disposition Act is amended by changing Section 2a as follows:

(30 ILCS 230/2a) (from Ch. 127, par. 172)

Sec. 2a. Every officer, board, commission, commissioner, department, institute, arm, or agency to whom or to which this Act applies is to notify the State Treasurer as to money paid to him, her, or it under protest as provided in Section 2a.1, and the Treasurer is to place the money in a special fund to be known as the protest fund. At the expiration of 30 days from the date of payment, the money is to be transferred from the protest fund to the appropriate fund in which it would have been placed had there been payment without protest unless the party making that payment under protest has filed a complaint and secured within that 30 days a temporary restraining order or a preliminary injunction, restraining the making of that transfer and unless, in addition, within that 30 days, a copy of the temporary restraining order or preliminary injunction has been served upon the State Treasurer and also upon the officer, board, commission, commissioner, department, institute, arm, or agency to whom or to which the payment under protest was made, in which case the payment and such other payments as are subsequently made under notice of protest, as provided in Section 2a.1, by the same person, the transfer of which payments is restrained by such temporary restraining order or preliminary injunction, are to be held in the protest fund until the final order or judgment of the court. The judicial remedy herein provided, however, relates only to questions which must be decided by the court in determining the proper disposition of the moneys paid under protest. Any authorized payment from the protest fund shall bear simple interest at a rate equal to the average of the weekly rates at issuance on 13-week U.S. Treasury Bills from the date of deposit into the protest fund to the date of disbursement from the protest fund. In cases involving temporary restraining orders or preliminary injunctions entered March 10, 1982, or thereafter, pursuant to this Section, when the party paying under protest fails in the protest action the State Treasurer shall determine if any moneys paid under protest were paid as a result of assessments under the following provisions: the Municipal Retailers' Occupation Tax Act, the Municipal Service Occupation Tax Act, the Municipal Use Tax Act, the Municipal Automobile Renting Occupation Tax Act, the Municipal Automobile Renting Use Tax Act, Section 8-11-9 of the Illinois Municipal Code, the Tourism, Conventions and Other Special Events Promotion Act of 1967, the County Automobile Renting Occupation Tax Act, the County Automobile Renting Use Tax Act, Section 5-1034 of the Counties Code, Section 5.01 of the Local Mass Transit District Act, the Downstate Public Transportation Act, Section 4.03 of the Regional Transportation Authority Act, subsections (c) and (d) of Section 201 of the Illinois Income Tax Act, Section 2a.1 of the Messages Tax Act, Section 2a.1 of the Gas Revenue Tax Act, Section 2a.1 of the Public Utilities Revenue Act, Section 60 of the Regional Cooperation and Smart Growth in Eastern Will County Act, and the Water Company Invested Capital Tax Act. Any such moneys paid under protest shall bear simple interest at a rate equal to the average of the weekly rates at issuance on 13-week U.S. Treasury Bills from the date of deposit into the protest fund to the date of disbursement from the protest fund.

It is unlawful for the Clerk of a court, a bank or any person other than the State Treasurer to be appointed as trustee with respect to any purported payment under protest, or otherwise to be authorized by a court to hold any purported payment under protest, during the pendency of the litigation involving such purported payment under protest, it being the expressed intention of the General Assembly that no one is to act as custodian of any such purported payment under protest except the State Treasurer.

No payment under protest within the meaning of this Act has been made unless paid to an officer, board, commission, commissioner, department, institute, arm or agency brought within this Act by Section 1 and unless made in the form specified by Section 2a.1. No payment into court or to a circuit clerk or other court-appointed trustee is a payment under protest within the meaning of this Act.

(Source: P.A. 87-950.)

Section 910. The Use Tax Act is amended by changing Section 22 as follows:

(35 ILCS 105/22) (from Ch. 120, par. 439.22)

Sec. 22. If it is determined that the Department should issue a credit or refund under this Act, the Department may first apply the amount thereof against any amount of tax or penalty or interest due hereunder, or under the Retailers' Occupation Tax Act, the Service Occupation Tax Act, the Service Use Tax Act, any local occupation or use tax administered by the Department, Section 4 of the Water Commission Act of 1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass Transit District Act, Section 60 of the Regional Cooperation and Smart Growth in Eastern Will County Act, or subsections (e), (f) and (g) of Section 4.03 of the Regional Transportation Authority Act, from the person entitled to such credit or refund. For this purpose, if proceedings are pending to determine whether or not any tax or penalty or interest is due under this Act or under the Retailers' Occupation Tax Act, the Service Occupation Tax Act, the Service Use Tax Act, any local occupation or use tax administered by the Department, Section 4 of the Water Commission Act of 1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass Transit District Act, Section 60 of the Regional Cooperation and Smart Growth in Eastern Will County Act, or subsections (e), (f) and (g) of Section 4.03 of the Regional Transportation Authority Act, from such person, the Department may withhold issuance of the credit or refund pending the final disposition of such proceedings and may apply such credit or refund against any amount found to be due to the Department as a result of such proceedings. The balance, if any, of the credit or refund shall be issued to the person entitled thereto.

Any credit memorandum issued hereunder may be used by the authorized holder thereof to pay any tax or penalty or interest due or to become due under this Act or under the Retailers' Occupation Tax Act, the Service Occupation Tax Act, the Service Use Tax Act, any local occupation or use tax administered by the Department, Section 4 of the Water Commission Act of 1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass Transit District Act, Section 60 of the Regional Cooperation and Smart Growth in Eastern Will County Act, or subsections (e), (f) and (g) of Section 4.03 of the Regional Transportation Authority Act, from such holder. Subject to reasonable rules of the Department, a credit memorandum issued hereunder may be assigned by the holder thereof to any other person for use in paying tax or penalty or interest which may be due or become due under this Act or under the Retailers' Occupation Tax Act, the Service Occupation Tax Act or the Service Use Tax Act, from the assignee.

In any case in which there has been an erroneous refund of tax payable under this Act, a notice of tax liability may be issued at any time within 3 years from the making of that refund, or within 5 years from the making of that refund if it appears that any part of the refund was induced by fraud or the misrepresentation of a material fact. The amount of any proposed assessment set forth in the notice shall be limited to the amount of the erroneous refund.

(Source: P.A. 91-901, eff. 1-1-01.)

Section 915. The Service Use Tax Act is amended by changing Section 20 as follows:

(35 ILCS 110/20) (from Ch. 120, par. 439.50)

Sec. 20. If it is determined that the Department should issue a credit or refund hereunder, the Department may first apply the amount thereof against any amount of tax or penalty or interest due hereunder, or under the Service Occupation Tax Act, the Retailers' Occupation Tax Act, the Use Tax Act, any local occupation or use tax administered by the Department, Section 4 of the Water Commission Act of 1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass Transit District Act, Section 60 of the Regional Cooperation and Smart Growth in Eastern Will County Act, or subsections (e), (f) and (g) of Section 4.03 of the Regional Transportation Authority Act, from the person entitled to such credit or refund. For this purpose, if proceedings are pending to determine whether or not any tax or penalty or interest is due hereunder, or under the Service Occupation Tax Act, the Retailers' Occupation Tax Act, the Use Tax Act, any local occupation or use tax administered by the Department, Section 4 of the Water Commission Act of 1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass Transit District Act, Section 60 of the Regional Cooperation and Smart Growth in Eastern Will County Act, or subsections (e), (f) and (g) of Section 4.03 of the Regional Transportation Authority Act, from such person, the Department may withhold issuance of the credit or refund pending the final disposition of such proceedings and may apply such credit or refund against any amount found to be due to the Department as a result of such proceedings. The balance, if any, of the credit or refund shall be issued to the person entitled thereto.

Any credit memorandum issued hereunder may be used by the authorized holder thereof to pay any tax or penalty or interest due or to become due under this Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, the Use Tax Act, any local occupation or use tax administered by the Department, Section 4 of the Water Commission Act of 1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass Transit District Act, Section 60 of the Regional Cooperation and Smart Growth in Eastern Will County Act, or subsections (e), (f) and (g) of Section 4.03 of the Regional Transportation Authority Act, from such holder. Subject to reasonable rules of the Department, a credit memorandum issued hereunder may be assigned by the holder thereof to any other person for use in paying tax or penalty or interest which may be due or become due under this Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, the Use Tax Act, any local occupation or use tax administered by the Department, Section 4 of the Water Commission Act of 1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass Transit District Act, Section 60 of the Regional Cooperation and Smart Growth in Eastern Will County Act, or subsections (e), (f) and (g) of Section 4.03 of the Regional Transportation Authority Act, from the assignee.

In any case which there has been an erroneous refund of tax payable under this Act, a notice of tax liability may be issued at any time within 3 years from the making of that refund, or within 5 years from the making of that refund if it appears that any part of the refund was induced by fraud or the misrepresentation of a material fact. The amount of any proposed assessment set forth in the notice shall be limited to the amount of the erroneous refund.

(Source: P.A. 91-901, eff. 1-1-01.)

Section 920. The Service Occupation Tax Act is amended by changing Section 20 as follows:

(35 ILCS 115/20) (from Ch. 120, par. 439.120)

Sec. 20. If it is determined that the Department should issue a credit or refund hereunder, the Department may first apply the amount thereof against any amount of tax or penalty or interest due hereunder, or under the Service Use Tax Act, the Retailers' Occupation Tax Act, the Use Tax Act, any local occupation or use tax administered by the Department, Section 4 of the Water Commission Act of 1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass Transit District Act, Section 60 of the Regional Cooperation and Smart Growth in Eastern Will County Act, or subsections (e), (f) and (g) of Section 4.03 of the Regional Transportation Authority Act, from the person entitled to such credit or refund. For this purpose, if proceedings are pending to determine whether or not any tax or penalty or interest is due hereunder, or under the Service Use Tax Act, the Retailers' Occupation Tax Act, the Use Tax Act, any local occupation or use tax administered by the Department, Section 4 of the Water Commission Act of 1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass Transit District Act, Section 60 of the Regional Cooperation and Smart Growth in Eastern Will County Act, or subsections (e), (f) and (g) of Section 4.03 of the Regional Transportation Authority Act, from such person, the Department may withhold issuance of the credit or refund pending the final disposition of such proceedings and may apply such credit or refund against any amount found to be due to the Department as a result of such proceedings. The balance, if any, of the credit or refund shall be issued to the person entitled thereto.

Any credit memorandum issued hereunder may be used by the authorized holder thereof to pay any tax or penalty or interest due or to become due under this Act, or under the Service Use Tax Act, the Retailers' Occupation Tax Act, the Use Tax Act, any local occupation or use tax administered by the Department, Section 4 of the Water Commission Act of 1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass Transit District Act, Section 60 of the Regional Cooperation and Smart Growth in Eastern Will County Act, or subsections (e), (f) and (g) of Section 4.03 of the Regional Transportation Authority Act, from such holder. Subject to reasonable rules of the Department, a credit memorandum issued hereunder may be assigned by the holder thereof to any other person for use in paying tax or penalty or interest which may be due or become due under this Act, the Service Use Tax Act, the Retailers' Occupation Tax Act, the Use Tax Act, any local occupation or use tax administered by the Department, Section 4 of the Water Commission Act of 1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass Transit District Act, Section 60 of the Regional Cooperation and Smart Growth in Eastern Will County Act, or subsections (e), (f) and (g) of Section 4.03 of the Regional Transportation Authority Act, from the assignee.

In any case in which there has been an erroneous refund of tax payable under this Act, a notice of tax liability may be issued at any time within 3 years from the making of that refund, or within 5 years from the making of that refund if it appears that any part of the refund was induced by fraud or the misrepresentation of a material fact. The amount of any proposed assessment set forth in the notice shall be limited to the amount of the erroneous refund.

(Source: P.A. 91-901, eff. 1-1-01.)

Section 925. The Retailers' Occupation Tax Act is amended by changing Section 6 as follows:

(35 ILCS 120/6) (from Ch. 120, par. 445)

Sec. 6. Credit memorandum or refund. If it appears, after claim therefor filed with the Department, that an amount of tax or penalty or interest has been paid which was not due under this Act, whether as the result of a mistake of fact or an error of law, except as hereinafter provided, then the Department shall issue a credit memorandum or refund to the person who made the erroneous payment or, if that person died or became a person under legal disability, to his or her legal representative, as such. For purposes of this Section, the tax is deemed to be erroneously paid by a retailer when the manufacturer of a motor vehicle sold by the retailer accepts the return of that automobile and refunds to the purchaser the selling price of that vehicle as provided in the New Vehicle Buyer Protection Act. When a motor vehicle is returned for a refund of the purchase price under the New Vehicle Buyer Protection Act, the Department shall issue a credit memorandum or a refund for the amount of tax paid by the retailer under this Act attributable to the initial sale of that vehicle. Claims submitted by the retailer are subject to the same restrictions and procedures provided for in this Act. If it is determined that the Department should issue a credit memorandum or refund, the Department may first apply the amount thereof against any tax or penalty or interest due or to become due under this Act or under the Use Tax Act, the Service Occupation Tax Act, the Service Use Tax Act, any local occupation or use tax administered by the Department, Section 4 of the Water Commission Act of 1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass Transit District Act, Section 60 of the Regional Cooperation and Smart Growth in Eastern Will County Act, or subsections (e), (f) and (g) of Section 4.03 of the Regional Transportation Authority Act, from the person who made the erroneous payment. If no tax or penalty or interest is due and no proceeding is pending to determine whether such person is indebted to the Department for tax or penalty or interest, the credit memorandum or refund shall be issued to the claimant; or (in the case of a credit memorandum) the credit memorandum may be assigned and set over by the lawful holder thereof, subject to reasonable rules of the Department, to any other person who is subject to this Act, the Use Tax Act, the Service Occupation Tax Act, the Service Use Tax Act, any local occupation or use tax administered by the Department, Section 4 of the Water Commission Act of 1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass Transit District Act, Section 60 of the Regional Cooperation and Smart Growth in Eastern Will County Act, or subsections (e), (f) and (g) of Section 4.03 of the Regional Transportation Authority Act, and the amount thereof applied by the Department against any tax or penalty or interest due or to become due under this Act or under the Use Tax Act, the Service Occupation Tax Act, the Service Use Tax Act, any local occupation or use tax administered by the Department, Section 4 of the Water Commission Act of 1985, subsections (b), (c) and (d) of Section 5.01 of the Local Mass Transit District Act, Section 60 of the Regional Cooperation and Smart Growth in Eastern Will County Act, or subsections (e), (f) and (g) of Section 4.03 of the Regional Transportation Authority Act, from such assignee. However, as to any claim for credit or refund filed with the Department on and after each January 1 and July 1 no amount of tax or penalty or interest erroneously paid (either in total or partial liquidation of a tax or penalty or amount of interest under this Act) more than 3 years prior to such January 1 and July 1, respectively, shall be credited or refunded, except that if both the Department and the taxpayer have agreed to an extension of time to issue a notice of tax liability as provided in Section 4 of this Act, such claim may be filed at any time prior to the expiration of the period agreed upon.

No claim may be allowed for any amount paid to the Department, whether paid voluntarily or involuntarily, if paid in total or partial liquidation of an assessment which had become final before the claim for credit or refund to recover the amount so paid is filed with the Department, or if paid in total or partial liquidation of a judgment or order of court. No credit may be allowed or refund made for any amount paid by or collected from any claimant unless it appears (a) that the claimant bore the burden of such amount and has not been relieved thereof nor reimbursed therefor and has not shifted such burden directly or indirectly through inclusion of such amount in the price of the tangible personal property sold by him or her or in any manner whatsoever; and that no understanding or agreement, written or oral, exists whereby he or she or his or her legal representative may be relieved of the burden of such amount, be reimbursed therefor or may shift the burden thereof; or (b) that he or she or his or her legal representative has repaid unconditionally such amount to his or her vendee (1) who bore the burden thereof and has not shifted such burden directly or indirectly, in any manner whatsoever; (2) who, if he or she has shifted such burden, has repaid unconditionally such amount to his own vendee; and (3) who is not entitled to receive any reimbursement therefor from any other source than from his or her vendor, nor to be relieved of such burden in any manner whatsoever. No credit may be allowed or refund made for any amount paid by or collected from any claimant unless it appears that the claimant has unconditionally repaid, to the purchaser, any amount collected from the purchaser and retained by the claimant with respect to the same transaction under the Use Tax Act.

Any credit or refund that is allowed under this Section shall bear interest at the rate and in the manner specified in the Uniform Penalty and Interest Act.

In case the Department determines that the claimant is entitled to a refund, such refund shall be made only from such appropriation as may be available for that purpose. If it appears unlikely that the amount appropriated would permit everyone having a claim allowed during the period covered by such appropriation to elect to receive a cash refund, the Department, by rule or regulation, shall provide for the payment of refunds in hardship cases and shall define what types of cases qualify as hardship cases.

If a retailer who has failed to pay retailers' occupation tax on gross receipts from retail sales is required by the Department to pay such tax, such retailer, without filing any formal claim with the Department, shall be allowed to take credit against such retailers' occupation tax liability to the extent, if any, to which such retailer has paid an amount equivalent to retailers' occupation tax or has paid use tax in error to his or her vendor or vendors of the same tangible personal property which such retailer bought for resale and did not first use before selling it, and no penalty or interest shall be charged to such retailer on the amount of such credit. However, when such credit is allowed to the retailer by the Department, the vendor is precluded from refunding any of that tax to the retailer and filing a claim for credit or refund with respect thereto with the Department. The provisions of this amendatory Act shall be applied retroactively, regardless of the date of the transaction.

(Source: P.A. 91-901, eff. 1-1-01.)

Section 930. The State Mandates Act is amended by adding Section 8.36 as follows:

(30 ILCS 805/8.36 new)

Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 97th General Assembly.

Section 990. Severability; construction. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes. The provisions of this Act shall be reasonably and liberally construed to achieve the purposes for the establishment of the Eastern Will County Development District.

Section 999. Effective date. This Act takes effect January 1, 2013.".