94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4077

 

Introduced 05/12/05, by Rep. Dave Winters

 

SYNOPSIS AS INTRODUCED:
 
55 ILCS 5/5-1006.5

    Amends the Counties Code. Amends the Special County Occupation Tax For Public Safety or Transportation Law in the Counties Code. Provides that, if a county imposes a tax under the Law, then it may, by ordinance, provide that the tax does not apply with respect to the sale or use of motor fuel or of specific types of motor fuel. Provides that, if the county board provides that the tax does not apply with respect to the sale or use of motor fuel or specific types of motor fuel, then a referendum is not required to reimpose the tax with respect to that motor fuel. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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
24 the existence of its long-range highway transportation plan as
25 required or described in Section 5-301 of the Illinois Highway
26 Code and must make the plan publicly available prior to
27 approval of the ordinance or resolution imposing the tax. If
28 the tax is imposed for transportation purposes for expenditures
29 for passenger rail transportation, the county board must
30 publish notice of the existence of its long-range passenger
31 rail transportation plan and must make the plan publicly
32 available prior to approval of the ordinance or resolution

 

 

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1 imposing the tax. The county clerk shall certify the question
2 to the proper election authority, who shall submit the
3 proposition at an election in accordance with the general
4 election law.
5         (1) The proposition for public safety purposes shall be
6     in substantially the following form:
7         "Shall (name of county) be authorized to impose a
8     public safety tax at the rate of .... upon all persons
9     engaged in the business of selling tangible personal
10     property at retail in the county on gross receipts from the
11     sales made in the course of their business?"
12         For the purposes of the paragraph, "public safety
13     purposes" means crime prevention, detention, fire
14     fighting, police, medical, ambulance, or other emergency
15     services.
16         Votes shall be recorded as "Yes" or "No".
17         (2) The proposition for transportation purposes shall
18     be in substantially the following form:
19         "Shall (name of county) be authorized to impose a tax
20     at the rate of (insert rate) upon all persons engaged in
21     the business of selling tangible personal property at
22     retail in the county on gross receipts from the sales made
23     in the course of their business to be used for
24     transportation purposes?
25         For the purposes of this paragraph, transportation
26     purposes means construction, maintenance, operation, and
27     improvement of public highways, any other purpose for which
28     a county may expend funds under the Illinois Highway Code,
29     and passenger rail transportation.
30         The votes shall be recorded as "Yes" or "No".
31     If a majority of the electors voting on the proposition
32 vote in favor of it, the county may impose the tax. A county
33 may not submit more than one proposition authorized by this
34 Section to the electors at any one time.
35     This additional tax may not be imposed on the sales of food
36 for human consumption that is to be consumed off the premises

 

 

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1 where it is sold (other than alcoholic beverages, soft drinks,
2 and food which has been prepared for immediate consumption) and
3 prescription and non-prescription medicines, drugs, medical
4 appliances and insulin, urine testing materials, syringes, and
5 needles used by diabetics. The tax imposed by a county under
6 this Section and all civil penalties that may be assessed as an
7 incident of the tax shall be collected and enforced by the
8 Illinois Department of Revenue and deposited into a special
9 fund created for that purpose. The certificate of registration
10 that is issued by the Department to a retailer under the
11 Retailers' Occupation Tax Act shall permit the retailer to
12 engage in a business that is taxable without registering
13 separately with the Department under an ordinance or resolution
14 under this Section. The Department has full power to administer
15 and enforce this Section, to collect all taxes and penalties
16 due under this Section, to dispose of taxes and penalties so
17 collected in the manner provided in this Section, and to
18 determine all rights to credit memoranda arising on account of
19 the erroneous payment of a tax or penalty under this Section.
20 In the administration of and compliance with this Section, the
21 Department and persons who are subject to this Section shall
22 (i) have the same rights, remedies, privileges, immunities,
23 powers, and duties, (ii) be subject to the same conditions,
24 restrictions, limitations, penalties, and definitions of
25 terms, and (iii) employ the same modes of procedure as are
26 prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
27 1n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions contained
28 in those Sections other than the State rate of tax), 2-15
29 through 2-70, 2a, 2b, 2c, 3 (except provisions relating to
30 transaction returns and quarter monthly payments), 4, 5, 5a,
31 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8,
32 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
33 and Section 3-7 of the Uniform Penalty and Interest Act as if
34 those provisions were set forth in this Section.
35     Persons subject to any tax imposed under the authority
36 granted in this Section may reimburse themselves for their

 

 

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1 sellers' tax liability by separately stating the tax as an
2 additional charge, which charge may be stated in combination,
3 in a single amount, with State tax which sellers are required
4 to collect under the Use Tax Act, pursuant to such bracketed
5 schedules as the Department may prescribe.
6     Whenever the Department determines that a refund should be
7 made under this Section to a claimant instead of issuing a
8 credit memorandum, the Department shall notify the State
9 Comptroller, who shall cause the order to be drawn for the
10 amount specified and to the person named in the notification
11 from the Department. The refund shall be paid by the State
12 Treasurer out of the County Public Safety or Transportation
13 Retailers' Occupation Tax Fund.
14     (b) If a tax has been imposed under subsection (a), a
15 service occupation tax shall also be imposed at the same rate
16 upon all persons engaged, in the county, in the business of
17 making sales of service, who, as an incident to making those
18 sales of service, transfer tangible personal property within
19 the county as an incident to a sale of service. This tax may
20 not be imposed on sales of food for human consumption that is
21 to be consumed off the premises where it is sold (other than
22 alcoholic beverages, soft drinks, and food prepared for
23 immediate consumption) and prescription and non-prescription
24 medicines, drugs, medical appliances and insulin, urine
25 testing materials, syringes, and needles used by diabetics. The
26 tax imposed under this subsection and all civil penalties that
27 may be assessed as an incident thereof shall be collected and
28 enforced by the Department of Revenue. The Department has full
29 power to administer and enforce this subsection; to collect all
30 taxes and penalties due hereunder; to dispose of taxes and
31 penalties so collected in the manner hereinafter provided; and
32 to determine all rights to credit memoranda arising on account
33 of the erroneous payment of tax or penalty hereunder. In the
34 administration of, and compliance with this subsection, the
35 Department and persons who are subject to this paragraph shall
36 (i) have the same rights, remedies, privileges, immunities,

 

 

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1 powers, and duties, (ii) be subject to the same conditions,
2 restrictions, limitations, penalties, exclusions, exemptions,
3 and definitions of terms, and (iii) employ the same modes of
4 procedure as are prescribed in Sections 2 (except that the
5 reference to State in the definition of supplier maintaining a
6 place of business in this State shall mean the county), 2a, 2b,
7 2c, 3 through 3-50 (in respect to all provisions therein other
8 than the State rate of tax), 4 (except that the reference to
9 the State shall be to the county), 5, 7, 8 (except that the
10 jurisdiction to which the tax shall be a debt to the extent
11 indicated in that Section 8 shall be the county), 9 (except as
12 to the disposition of taxes and penalties collected), 10, 11,
13 12 (except the reference therein to Section 2b of the
14 Retailers' Occupation Tax Act), 13 (except that any reference
15 to the State shall mean the county), Section 15, 16, 17, 18, 19
16 and 20 of the Service Occupation Tax Act and Section 3-7 of the
17 Uniform Penalty and Interest Act, as fully as if those
18 provisions were set forth herein.
19     Persons subject to any tax imposed under the authority
20 granted in this subsection may reimburse themselves for their
21 serviceman's tax liability by separately stating the tax as an
22 additional charge, which charge may be stated in combination,
23 in a single amount, with State tax that servicemen are
24 authorized to collect under the Service Use Tax Act, in
25 accordance with such bracket schedules as the Department may
26 prescribe.
27     Whenever the Department determines that a refund should be
28 made under this subsection to a claimant instead of issuing a
29 credit memorandum, the Department shall notify the State
30 Comptroller, who shall cause the warrant to be drawn for the
31 amount specified, and to the person named, in the notification
32 from the Department. The refund shall be paid by the State
33 Treasurer out of the County Public Safety or Transportation
34 Retailers' Occupation Fund.
35     Nothing in this subsection shall be construed to authorize
36 the county to impose a tax upon the privilege of engaging in

 

 

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1 any business which under the Constitution of the United States
2 may not be made the subject of taxation by the State.
3     (c) The Department shall immediately pay over to the State
4 Treasurer, ex officio, as trustee, all taxes and penalties
5 collected under this Section to be deposited into the County
6 Public Safety or Transportation Retailers' Occupation Tax
7 Fund, which shall be an unappropriated trust fund held outside
8 of the State treasury. On or before the 25th day of each
9 calendar month, the Department shall prepare and certify to the
10 Comptroller the disbursement of stated sums of money to the
11 counties from which retailers have paid taxes or penalties to
12 the Department during the second preceding calendar month. The
13 amount to be paid to each county, and deposited by the county
14 into its special fund created for the purposes of this Section,
15 shall be the amount (not including credit memoranda) collected
16 under this Section during the second preceding calendar month
17 by the Department plus an amount the Department determines is
18 necessary to offset any amounts that were erroneously paid to a
19 different taxing body, and not including (i) an amount equal to
20 the amount of refunds made during the second preceding calendar
21 month by the Department on behalf of the county and (ii) any
22 amount that the Department determines is necessary to offset
23 any amounts that were payable to a different taxing body but
24 were erroneously paid to the county. Within 10 days after
25 receipt by the Comptroller of the disbursement certification to
26 the counties provided for in this Section to be given to the
27 Comptroller by the Department, the Comptroller shall cause the
28 orders to be drawn for the respective amounts in accordance
29 with directions contained in the certification.
30     In addition to the disbursement required by the preceding
31 paragraph, an allocation shall be made in March of each year to
32 each county that received more than $500,000 in disbursements
33 under the preceding paragraph in the preceding calendar year.
34 The allocation shall be in an amount equal to the average
35 monthly distribution made to each such county under the
36 preceding paragraph during the preceding calendar year

 

 

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1 (excluding the 2 months of highest receipts). The distribution
2 made in March of each year subsequent to the year in which an
3 allocation was made pursuant to this paragraph and the
4 preceding paragraph shall be reduced by the amount allocated
5 and disbursed under this paragraph in the preceding calendar
6 year. The Department shall prepare and certify to the
7 Comptroller for disbursement the allocations made in
8 accordance with this paragraph.
9     (d) For the purpose of determining the local governmental
10 unit whose tax is applicable, a retail sale by a producer of
11 coal or another mineral mined in Illinois is a sale at retail
12 at the place where the coal or other mineral mined in Illinois
13 is extracted from the earth. This paragraph does not apply to
14 coal or another mineral when it is delivered or shipped by the
15 seller to the purchaser at a point outside Illinois so that the
16 sale is exempt under the United States Constitution as a sale
17 in interstate or foreign commerce.
18     (e) Nothing in this Section shall be construed to authorize
19 a county to impose a tax upon the privilege of engaging in any
20 business that under the Constitution of the United States may
21 not be made the subject of taxation by this State.
22     (e-5) If a county imposes a tax under this Section, the
23 county board may, by ordinance, discontinue or lower the rate
24 of the tax or, in addition or alternatively, provide, with
25 respect to the sale or use of motor fuel or specific types of
26 motor fuel, that the tax does not apply. If the county board
27 lowers the tax rate or discontinues the tax, a referendum must
28 be held in accordance with subsection (a) of this Section in
29 order to increase the rate of the tax or to reimpose the
30 discontinued tax. If the county board provides that the tax
31 does not apply with respect to the sale or use of motor fuel or
32 specific types of motor fuel, then a referendum is not required
33 to reimpose the tax with respect to that motor fuel.
34     (f) Beginning April 1, 1998, the results of any election
35 authorizing a proposition to impose a tax under this Section or
36 effecting a change in the rate of tax, or any ordinance

 

 

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1 lowering the rate or discontinuing the tax, shall be certified
2 by the county clerk and filed with the Illinois Department of
3 Revenue either (i) on or before the first day of April,
4 whereupon the Department shall proceed to administer and
5 enforce the tax as of the first day of July next following the
6 filing; or (ii) on or before the first day of October,
7 whereupon the Department shall proceed to administer and
8 enforce the tax as of the first day of January next following
9 the filing.
10     (g) When certifying the amount of a monthly disbursement to
11 a county under this Section, the Department shall increase or
12 decrease the amounts by an amount necessary to offset any
13 miscalculation of previous disbursements. The offset amount
14 shall be the amount erroneously disbursed within the previous 6
15 months from the time a miscalculation is discovered.
16     (h) This Section may be cited as the "Special County
17 Occupation Tax For Public Safety or Transportation Law".
18     (i) For purposes of this Section, "public safety" includes,
19 but is not limited to, crime prevention, detention, fire
20 fighting, police, medical, ambulance, or other emergency
21 services. For the purposes of this Section, "transportation"
22 includes, but is not limited to, the construction, maintenance,
23 operation, and improvement of public highways, any other
24 purpose for which a county may expend funds under the Illinois
25 Highway Code, and passenger rail transportation.
26 (Source: P.A. 93-556, eff. 8-20-03.)
 
27     Section 99. Effective date. This Act takes effect upon
28 becoming law.