96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB4155

 

Introduced 2/27/2009, by Rep. Mike Fortner

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/6z-18   from Ch. 127, par. 142z-18
30 ILCS 105/6z-20   from Ch. 127, par. 142z-20
30 ILCS 105/8.3   from Ch. 127, par. 144.3
30 ILCS 105/8h
35 ILCS 105/3-10   from Ch. 120, par. 439.3-10
35 ILCS 110/3-10   from Ch. 120, par. 439.33-10
35 ILCS 115/3-10   from Ch. 120, par. 439.103-10
35 ILCS 120/2-10   from Ch. 120, par. 441-10
35 ILCS 505/2   from Ch. 120, par. 418
35 ILCS 505/8   from Ch. 120, par. 424
35 ILCS 505/8b new

    Amends the State Finance Act. Provides that, beginning with fiscal year 2010 and thereafter, Road Fund moneys may not be appropriated to certain executive agencies. Prohibits certain transfers from the Road Fund or the State Construction Account Fund. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, beginning on July 1, 2009, motor fuel and gasohol must be taxed under the Acts at the rate of 1.25% (now, 6.25%). Amends the Motor Fuel Tax Law. Imposes an additional tax of $0.150 per gallon on motor fuel sold in the State. Provides that this additional tax must be adjusted each fiscal year to account for inflation. Provides that the proceeds of this additional tax must be deposited into the Metropolitan Transit and Road Improvement Fund and sets forth certain requirements regarding distributions from that Fund. Effective July 1, 2009.


LRB096 11814 HLH 22657 b

 

 

A BILL FOR

 

HB4155 LRB096 11814 HLH 22657 b

1     AN ACT concerning finance.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The State Finance Act is amended by changing
5 Sections 6z-18, 6z-20, 8.3, and 8h as follows:
 
6     (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
7     Sec. 6z-18. A portion of the money paid into the Local
8 Government Tax Fund from sales of food for human consumption
9 which is to be consumed off the premises where it is sold
10 (other than alcoholic beverages, soft drinks and food which has
11 been prepared for immediate consumption) and prescription and
12 nonprescription medicines, drugs, medical appliances and
13 insulin, urine testing materials, syringes and needles used by
14 diabetics, which occurred in municipalities, shall be
15 distributed to each municipality based upon the sales which
16 occurred in that municipality. The remainder shall be
17 distributed to each county based upon the sales which occurred
18 in the unincorporated area of that county.
19     A portion of the money paid into the Local Government Tax
20 Fund from the 6.25% general use tax rate on the selling price
21 of tangible personal property which is purchased outside
22 Illinois at retail from a retailer and which is titled or
23 registered by any agency of this State's government shall be

 

 

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1 distributed to municipalities as provided in this paragraph.
2 Each municipality shall receive the amount attributable to
3 sales for which Illinois addresses for titling or registration
4 purposes are given as being in such municipality. The remainder
5 of the money paid into the Local Government Tax Fund from such
6 sales shall be distributed to counties. Each county shall
7 receive the amount attributable to sales for which Illinois
8 addresses for titling or registration purposes are given as
9 being located in the unincorporated area of such county.
10     A portion of the money paid into the Local Government Tax
11 Fund from the 6.25% general rate (and, beginning July 1, 2000
12 and through December 31, 2000 and beginning again on July 1,
13 2009, the 1.25% rate on motor fuel and gasohol) on sales
14 subject to taxation under the Retailers' Occupation Tax Act and
15 the Service Occupation Tax Act, which occurred in
16 municipalities, shall be distributed to each municipality,
17 based upon the sales which occurred in that municipality. The
18 remainder shall be distributed to each county, based upon the
19 sales which occurred in the unincorporated area of such county.
20     For the purpose of determining allocation to the local
21 government unit, a retail sale by a producer of coal or other
22 mineral mined in Illinois is a sale at retail at the place
23 where the coal or other mineral mined in Illinois is extracted
24 from the earth. This paragraph does not apply to coal or other
25 mineral when it is delivered or shipped by the seller to the
26 purchaser at a point outside Illinois so that the sale is

 

 

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1 exempt under the United States Constitution as a sale in
2 interstate or foreign commerce.
3     Whenever the Department determines that a refund of money
4 paid into the Local Government Tax Fund should be made to a
5 claimant instead of issuing a credit memorandum, the Department
6 shall notify the State Comptroller, who shall cause the order
7 to be drawn for the amount specified, and to the person named,
8 in such notification from the Department. Such refund shall be
9 paid by the State Treasurer out of the Local Government Tax
10 Fund.
11     On or before the 25th day of each calendar month, the
12 Department shall prepare and certify to the Comptroller the
13 disbursement of stated sums of money to named municipalities
14 and counties, the municipalities and counties to be those
15 entitled to distribution of taxes or penalties paid to the
16 Department during the second preceding calendar month. The
17 amount to be paid to each municipality or county shall be the
18 amount (not including credit memoranda) collected during the
19 second preceding calendar month by the Department and paid into
20 the Local Government Tax Fund, plus an amount the Department
21 determines is necessary to offset any amounts which were
22 erroneously paid to a different taxing body, and not including
23 an amount equal to the amount of refunds made during the second
24 preceding calendar month by the Department, and not including
25 any amount which the Department determines is necessary to
26 offset any amounts which are payable to a different taxing body

 

 

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1 but were erroneously paid to the municipality or county. Within
2 10 days after receipt, by the Comptroller, of the disbursement
3 certification to the municipalities and counties, provided for
4 in this Section to be given to the Comptroller by the
5 Department, the Comptroller shall cause the orders to be drawn
6 for the respective amounts in accordance with the directions
7 contained in such certification.
8     When certifying the amount of monthly disbursement to a
9 municipality or county under this Section, the Department shall
10 increase or decrease that amount by an amount necessary to
11 offset any misallocation of previous disbursements. The offset
12 amount shall be the amount erroneously disbursed within the 6
13 months preceding the time a misallocation is discovered.
14     The provisions directing the distributions from the
15 special fund in the State Treasury provided for in this Section
16 shall constitute an irrevocable and continuing appropriation
17 of all amounts as provided herein. The State Treasurer and
18 State Comptroller are hereby authorized to make distributions
19 as provided in this Section.
20     In construing any development, redevelopment, annexation,
21 preannexation or other lawful agreement in effect prior to
22 September 1, 1990, which describes or refers to receipts from a
23 county or municipal retailers' occupation tax, use tax or
24 service occupation tax which now cannot be imposed, such
25 description or reference shall be deemed to include the
26 replacement revenue for such abolished taxes, distributed from

 

 

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1 the Local Government Tax Fund.
2 (Source: P.A. 90-491, eff. 1-1-98; 91-51, eff. 6-30-99; 91-872,
3 eff. 7-1-00.)
 
4     (30 ILCS 105/6z-20)  (from Ch. 127, par. 142z-20)
5     Sec. 6z-20. Of the money received from the 6.25% general
6 rate (and, beginning July 1, 2000 and through December 31, 2000
7 and beginning again on July 1, 2009, the 1.25% rate on motor
8 fuel and gasohol) on sales subject to taxation under the
9 Retailers' Occupation Tax Act and Service Occupation Tax Act
10 and paid into the County and Mass Transit District Fund,
11 distribution to the Regional Transportation Authority tax
12 fund, created pursuant to Section 4.03 of the Regional
13 Transportation Authority Act, for deposit therein shall be made
14 based upon the retail sales occurring in a county having more
15 than 3,000,000 inhabitants. The remainder shall be distributed
16 to each county having 3,000,000 or fewer inhabitants based upon
17 the retail sales occurring in each such county.
18     For the purpose of determining allocation to the local
19 government unit, a retail sale by a producer of coal or other
20 mineral mined in Illinois is a sale at retail at the place
21 where the coal or other mineral mined in Illinois is extracted
22 from the earth. This paragraph does not apply to coal or other
23 mineral when it is delivered or shipped by the seller to the
24 purchaser at a point outside Illinois so that the sale is
25 exempt under the United States Constitution as a sale in

 

 

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1 interstate or foreign commerce.
2     Of the money received from the 6.25% general use tax rate
3 on tangible personal property which is purchased outside
4 Illinois at retail from a retailer and which is titled or
5 registered by any agency of this State's government and paid
6 into the County and Mass Transit District Fund, the amount for
7 which Illinois addresses for titling or registration purposes
8 are given as being in each county having more than 3,000,000
9 inhabitants shall be distributed into the Regional
10 Transportation Authority tax fund, created pursuant to Section
11 4.03 of the Regional Transportation Authority Act. The
12 remainder of the money paid from such sales shall be
13 distributed to each county based on sales for which Illinois
14 addresses for titling or registration purposes are given as
15 being located in the county. Any money paid into the Regional
16 Transportation Authority Occupation and Use Tax Replacement
17 Fund from the County and Mass Transit District Fund prior to
18 January 14, 1991, which has not been paid to the Authority
19 prior to that date, shall be transferred to the Regional
20 Transportation Authority tax fund.
21     Whenever the Department determines that a refund of money
22 paid into the County and Mass Transit District Fund should be
23 made to a claimant instead of issuing a credit memorandum, the
24 Department shall notify the State Comptroller, who shall cause
25 the order to be drawn for the amount specified, and to the
26 person named, in such notification from the Department. Such

 

 

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1 refund shall be paid by the State Treasurer out of the County
2 and Mass Transit District Fund.
3     On or before the 25th day of each calendar month, the
4 Department shall prepare and certify to the Comptroller the
5 disbursement of stated sums of money to the Regional
6 Transportation Authority and to named counties, the counties to
7 be those entitled to distribution, as hereinabove provided, of
8 taxes or penalties paid to the Department during the second
9 preceding calendar month. The amount to be paid to the Regional
10 Transportation Authority and each county having 3,000,000 or
11 fewer inhabitants shall be the amount (not including credit
12 memoranda) collected during the second preceding calendar
13 month by the Department and paid into the County and Mass
14 Transit District Fund, plus an amount the Department determines
15 is necessary to offset any amounts which were erroneously paid
16 to a different taxing body, and not including an amount equal
17 to the amount of refunds made during the second preceding
18 calendar month by the Department, and not including any amount
19 which the Department determines is necessary to offset any
20 amounts which were payable to a different taxing body but were
21 erroneously paid to the Regional Transportation Authority or
22 county. Within 10 days after receipt, by the Comptroller, of
23 the disbursement certification to the Regional Transportation
24 Authority and counties, provided for in this Section to be
25 given to the Comptroller by the Department, the Comptroller
26 shall cause the orders to be drawn for the respective amounts

 

 

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1 in accordance with the directions contained in such
2 certification.
3     When certifying the amount of a monthly disbursement to the
4 Regional Transportation Authority or to a county under this
5 Section, the Department shall increase or decrease that amount
6 by an amount necessary to offset any misallocation of previous
7 disbursements. The offset amount shall be the amount
8 erroneously disbursed within the 6 months preceding the time a
9 misallocation is discovered.
10     The provisions directing the distributions from the
11 special fund in the State Treasury provided for in this Section
12 and from the Regional Transportation Authority tax fund created
13 by Section 4.03 of the Regional Transportation Authority Act
14 shall constitute an irrevocable and continuing appropriation
15 of all amounts as provided herein. The State Treasurer and
16 State Comptroller are hereby authorized to make distributions
17 as provided in this Section.
18     In construing any development, redevelopment, annexation,
19 preannexation or other lawful agreement in effect prior to
20 September 1, 1990, which describes or refers to receipts from a
21 county or municipal retailers' occupation tax, use tax or
22 service occupation tax which now cannot be imposed, such
23 description or reference shall be deemed to include the
24 replacement revenue for such abolished taxes, distributed from
25 the County and Mass Transit District Fund or Local Government
26 Distributive Fund, as the case may be.

 

 

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1 (Source: P.A. 90-491, eff. 1-1-98; 91-872, eff. 7-1-00.)
 
2     (30 ILCS 105/8.3)  (from Ch. 127, par. 144.3)
3     Sec. 8.3. Money in the Road Fund shall, if and when the
4 State of Illinois incurs any bonded indebtedness for the
5 construction of permanent highways, be set aside and used for
6 the purpose of paying and discharging annually the principal
7 and interest on that bonded indebtedness then due and payable,
8 and for no other purpose. The surplus, if any, in the Road Fund
9 after the payment of principal and interest on that bonded
10 indebtedness then annually due shall be used as follows:
11         first -- to pay the cost of administration of Chapters
12     2 through 10 of the Illinois Vehicle Code, except the cost
13     of administration of Articles I and II of Chapter 3 of that
14     Code; and
15         secondly -- for expenses of the Department of
16     Transportation for construction, reconstruction,
17     improvement, repair, maintenance, operation, and
18     administration of highways in accordance with the
19     provisions of laws relating thereto, or for any purpose
20     related or incident to and connected therewith, including
21     the separation of grades of those highways with railroads
22     and with highways and including the payment of awards made
23     by the Illinois Workers' Compensation Commission under the
24     terms of the Workers' Compensation Act or Workers'
25     Occupational Diseases Act for injury or death of an

 

 

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1     employee of the Division of Highways in the Department of
2     Transportation; or for the acquisition of land and the
3     erection of buildings for highway purposes, including the
4     acquisition of highway right-of-way or for investigations
5     to determine the reasonably anticipated future highway
6     needs; or for making of surveys, plans, specifications and
7     estimates for and in the construction and maintenance of
8     flight strips and of highways necessary to provide access
9     to military and naval reservations, to defense industries
10     and defense-industry sites, and to the sources of raw
11     materials and for replacing existing highways and highway
12     connections shut off from general public use at military
13     and naval reservations and defense-industry sites, or for
14     the purchase of right-of-way, except that the State shall
15     be reimbursed in full for any expense incurred in building
16     the flight strips; or for the operating and maintaining of
17     highway garages; or for patrolling and policing the public
18     highways and conserving the peace; or for the operating
19     expenses of the Department relating to the administration
20     of public transportation programs; or for any of those
21     purposes or any other purpose that may be provided by law.
22     Appropriations for any of those purposes are payable from
23 the Road Fund. Appropriations may also be made from the Road
24 Fund for the administrative expenses of any State agency that
25 are related to motor vehicles or arise from the use of motor
26 vehicles.

 

 

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1     Beginning with fiscal year 1980 and thereafter, no Road
2 Fund monies shall be appropriated to the following Departments
3 or agencies of State government for administration, grants, or
4 operations; but this limitation is not a restriction upon
5 appropriating for those purposes any Road Fund monies that are
6 eligible for federal reimbursement;
7         1. Department of Public Health;
8         2. Department of Transportation, only with respect to
9     subsidies for one-half fare Student Transportation and
10     Reduced Fare for Elderly;
11         3. Department of Central Management Services, except
12     for expenditures incurred for group insurance premiums of
13     appropriate personnel;
14         4. Judicial Systems and Agencies.
15     Beginning with fiscal year 1981 and thereafter, no Road
16 Fund monies shall be appropriated to the following Departments
17 or agencies of State government for administration, grants, or
18 operations; but this limitation is not a restriction upon
19 appropriating for those purposes any Road Fund monies that are
20 eligible for federal reimbursement:
21         1. Department of State Police, except for expenditures
22     with respect to the Division of Operations;
23         2. Department of Transportation, only with respect to
24     Intercity Rail Subsidies and Rail Freight Services.
25     Beginning with fiscal year 1982 and thereafter, no Road
26 Fund monies shall be appropriated to the following Departments

 

 

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1 or agencies of State government for administration, grants, or
2 operations; but this limitation is not a restriction upon
3 appropriating for those purposes any Road Fund monies that are
4 eligible for federal reimbursement: Department of Central
5 Management Services, except for awards made by the Illinois
6 Workers' Compensation Commission under the terms of the
7 Workers' Compensation Act or Workers' Occupational Diseases
8 Act for injury or death of an employee of the Division of
9 Highways in the Department of Transportation.
10     Beginning with fiscal year 1984 and thereafter, no Road
11 Fund monies shall be appropriated to the following Departments
12 or agencies of State government for administration, grants, or
13 operations; but this limitation is not a restriction upon
14 appropriating for those purposes any Road Fund monies that are
15 eligible for federal reimbursement:
16         1. Department of State Police, except not more than 40%
17     of the funds appropriated for the Division of Operations;
18         2. State Officers.
19     Beginning with fiscal year 1984 and thereafter, no Road
20 Fund monies shall be appropriated to any Department or agency
21 of State government for administration, grants, or operations
22 except as provided hereafter; but this limitation is not a
23 restriction upon appropriating for those purposes any Road Fund
24 monies that are eligible for federal reimbursement. It shall
25 not be lawful to circumvent the above appropriation limitations
26 by governmental reorganization or other methods.

 

 

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1 Appropriations shall be made from the Road Fund only in
2 accordance with the provisions of this Section.
3     Money in the Road Fund shall, if and when the State of
4 Illinois incurs any bonded indebtedness for the construction of
5 permanent highways, be set aside and used for the purpose of
6 paying and discharging during each fiscal year the principal
7 and interest on that bonded indebtedness as it becomes due and
8 payable as provided in the Transportation Bond Act, and for no
9 other purpose. The surplus, if any, in the Road Fund after the
10 payment of principal and interest on that bonded indebtedness
11 then annually due shall be used as follows:
12         first -- to pay the cost of administration of Chapters
13     2 through 10 of the Illinois Vehicle Code; and
14         secondly -- no Road Fund monies derived from fees,
15     excises, or license taxes relating to registration,
16     operation and use of vehicles on public highways or to
17     fuels used for the propulsion of those vehicles, shall be
18     appropriated or expended other than for costs of
19     administering the laws imposing those fees, excises, and
20     license taxes, statutory refunds and adjustments allowed
21     thereunder, administrative costs of the Department of
22     Transportation, including, but not limited to, the
23     operating expenses of the Department relating to the
24     administration of public transportation programs, payment
25     of debts and liabilities incurred in construction and
26     reconstruction of public highways and bridges, acquisition

 

 

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1     of rights-of-way for and the cost of construction,
2     reconstruction, maintenance, repair, and operation of
3     public highways and bridges under the direction and
4     supervision of the State, political subdivision, or
5     municipality collecting those monies, and the costs for
6     patrolling and policing the public highways (by State,
7     political subdivision, or municipality collecting that
8     money) for enforcement of traffic laws. The separation of
9     grades of such highways with railroads and costs associated
10     with protection of at-grade highway and railroad crossing
11     shall also be permissible.
12     Appropriations for any of such purposes are payable from
13 the Road Fund or the Grade Crossing Protection Fund as provided
14 in Section 8 of the Motor Fuel Tax Law.
15     Except as provided in this paragraph, beginning with fiscal
16 year 1991 and thereafter, no Road Fund monies shall be
17 appropriated to the Department of State Police for the purposes
18 of this Section in excess of its total fiscal year 1990 Road
19 Fund appropriations for those purposes unless otherwise
20 provided in Section 5g of this Act. For fiscal years 2003,
21 2004, 2005, 2006, and 2007 only, no Road Fund monies shall be
22 appropriated to the Department of State Police for the purposes
23 of this Section in excess of $97,310,000. For fiscal year 2008
24 only, no Road Fund monies shall be appropriated to the
25 Department of State Police for the purposes of this Section in
26 excess of $106,100,000. For fiscal year 2009 only, no Road Fund

 

 

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1 monies shall be appropriated to the Department of State Police
2 for the purposes of this Section in excess of $114,700,000. It
3 shall not be lawful to circumvent this limitation on
4 appropriations by governmental reorganization or other methods
5 unless otherwise provided in Section 5g of this Act.
6     In fiscal year 1994, no Road Fund monies shall be
7 appropriated to the Secretary of State for the purposes of this
8 Section in excess of the total fiscal year 1991 Road Fund
9 appropriations to the Secretary of State for those purposes,
10 plus $9,800,000. It shall not be lawful to circumvent this
11 limitation on appropriations by governmental reorganization or
12 other method.
13     Beginning with fiscal year 1995 and thereafter, no Road
14 Fund monies shall be appropriated to the Secretary of State for
15 the purposes of this Section in excess of the total fiscal year
16 1994 Road Fund appropriations to the Secretary of State for
17 those purposes. It shall not be lawful to circumvent this
18 limitation on appropriations by governmental reorganization or
19 other methods.
20     Beginning with fiscal year 2000, total Road Fund
21 appropriations to the Secretary of State for the purposes of
22 this Section shall not exceed the amounts specified for the
23 following fiscal years:
24        Fiscal Year 2000$80,500,000;
25        Fiscal Year 2001$80,500,000;
26        Fiscal Year 2002$80,500,000;

 

 

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1        Fiscal Year 2003$130,500,000;
2        Fiscal Year 2004$130,500,000;
3        Fiscal Year 2005$130,500,000;
4        Fiscal Year 2006 $130,500,000;
5        Fiscal Year 2007 $130,500,000;
6        Fiscal Year 2008$130,500,000;
7        Fiscal Year 2009 $130,500,000;
8        Fiscal Year 2010 and each year thereafter$30,500,000.
9     It shall not be lawful to circumvent this limitation on
10 appropriations by governmental reorganization or other
11 methods.
12     No new program may be initiated in fiscal year 1991 and
13 thereafter that is not consistent with the limitations imposed
14 by this Section for fiscal year 1984 and thereafter, insofar as
15 appropriation of Road Fund monies is concerned.
16     Nothing in this Section prohibits transfers from the Road
17 Fund to the State Construction Account Fund under Section 5e of
18 this Act; nor to the General Revenue Fund, as authorized by
19 this amendatory Act of the 93rd General Assembly.
20     The additional amounts authorized for expenditure in this
21 Section by Public Acts 92-0600, 93-0025, 93-0839, and 94-91
22 shall be repaid to the Road Fund from the General Revenue Fund
23 in the next succeeding fiscal year that the General Revenue
24 Fund has a positive budgetary balance, as determined by
25 generally accepted accounting principles applicable to
26 government.

 

 

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1     Beginning with fiscal year 2010 and thereafter, no Road
2 Fund moneys may be appropriated to the Department of Central
3 Management Services, the Department of Employment Security,
4 the Department of Revenue, the Court of Claims, or any other
5 State agency (other than the Department of State Police and the
6 Department of Transportation and the Secretary of State) for
7 the purposes of this Section. Appropriations to those entities
8 for those purposes shall, instead, be made from the General
9 Revenue Fund. It shall not be lawful to circumvent this
10 limitation on appropriations by governmental reorganization or
11 other methods. Nothing in this paragraph prohibits
12 appropriations from the Road Fund to the Department of State
13 Police for the purposes of the highway patrol budget only.
14     The additional amounts authorized for expenditure by the
15 Secretary of State and the Department of State Police in this
16 Section by this amendatory Act of the 94th General Assembly
17 shall be repaid to the Road Fund from the General Revenue Fund
18 in the next succeeding fiscal year that the General Revenue
19 Fund has a positive budgetary balance, as determined by
20 generally accepted accounting principles applicable to
21 government.
22 (Source: P.A. 94-91, eff. 7-1-05; 94-839, eff. 6-6-06; 95-707,
23 eff. 1-11-08; 95-744, eff. 7-18-08.)
 
24     (30 ILCS 105/8h)
25     Sec. 8h. Transfers to General Revenue Fund.

 

 

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1     (a) Except as otherwise provided in this Section and
2 Section 8n of this Act, and notwithstanding any other State law
3 to the contrary, the Governor may, through June 30, 2007, from
4 time to time direct the State Treasurer and Comptroller to
5 transfer a specified sum from any fund held by the State
6 Treasurer to the General Revenue Fund in order to help defray
7 the State's operating costs for the fiscal year. The total
8 transfer under this Section from any fund in any fiscal year
9 shall not exceed the lesser of (i) 8% of the revenues to be
10 deposited into the fund during that fiscal year or (ii) an
11 amount that leaves a remaining fund balance of 25% of the July
12 1 fund balance of that fiscal year. In fiscal year 2005 only,
13 prior to calculating the July 1, 2004 final balances, the
14 Governor may calculate and direct the State Treasurer with the
15 Comptroller to transfer additional amounts determined by
16 applying the formula authorized in Public Act 93-839 to the
17 funds balances on July 1, 2003. No transfer may be made from a
18 fund under this Section that would have the effect of reducing
19 the available balance in the fund to an amount less than the
20 amount remaining unexpended and unreserved from the total
21 appropriation from that fund estimated to be expended for that
22 fiscal year. This Section does not apply to any funds that are
23 restricted by federal law to a specific use, to any funds in
24 the Motor Fuel Tax Fund, the Intercity Passenger Rail Fund, the
25 Hospital Provider Fund, the Medicaid Provider Relief Fund, the
26 Teacher Health Insurance Security Fund, the Reviewing Court

 

 

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1 Alternative Dispute Resolution Fund, the Voters' Guide Fund,
2 the Foreign Language Interpreter Fund, the Lawyers' Assistance
3 Program Fund, the Supreme Court Federal Projects Fund, the
4 Supreme Court Special State Projects Fund, the Supplemental
5 Low-Income Energy Assistance Fund, the Good Samaritan Energy
6 Trust Fund, the Low-Level Radioactive Waste Facility
7 Development and Operation Fund, the Horse Racing Equity Trust
8 Fund, the Metabolic Screening and Treatment Fund, or the
9 Hospital Basic Services Preservation Fund, or to any funds to
10 which Section 70-50 of the Nurse Practice Act applies. No
11 transfers may be made under this Section from the Pet
12 Population Control Fund. Notwithstanding any other provision
13 of this Section, for fiscal year 2004, the total transfer under
14 this Section from the Road Fund or the State Construction
15 Account Fund shall not exceed the lesser of (i) 5% of the
16 revenues to be deposited into the fund during that fiscal year
17 or (ii) 25% of the beginning balance in the fund. For fiscal
18 year 2005 through fiscal year 2007, no amounts may be
19 transferred under this Section from the Road Fund, the State
20 Construction Account Fund, the Criminal Justice Information
21 Systems Trust Fund, the Wireless Service Emergency Fund, or the
22 Mandatory Arbitration Fund. No transfers may be made under this
23 Section from the Road Fund or the State Construction Account
24 Fund on or after the effective date of this amendatory Act of
25 the 96th General Assembly.
26     In determining the available balance in a fund, the

 

 

HB4155 - 20 - LRB096 11814 HLH 22657 b

1 Governor may include receipts, transfers into the fund, and
2 other resources anticipated to be available in the fund in that
3 fiscal year.
4     The State Treasurer and Comptroller shall transfer the
5 amounts designated under this Section as soon as may be
6 practicable after receiving the direction to transfer from the
7 Governor.
8     (a-5) Transfers directed to be made under this Section on
9 or before February 28, 2006 that are still pending on May 19,
10 2006 (the effective date of Public Act 94-774) shall be
11 redirected as provided in Section 8n of this Act.
12     (b) This Section does not apply to: (i) the Ticket For The
13 Cure Fund; (ii) any fund established under the Community Senior
14 Services and Resources Act; or (iii) on or after January 1,
15 2006 (the effective date of Public Act 94-511), the Child Labor
16 and Day and Temporary Labor Enforcement Fund.
17     (c) This Section does not apply to the Demutualization
18 Trust Fund established under the Uniform Disposition of
19 Unclaimed Property Act.
20     (d) This Section does not apply to moneys set aside in the
21 Illinois State Podiatric Disciplinary Fund for podiatric
22 scholarships and residency programs under the Podiatric
23 Scholarship and Residency Act.
24     (e) Subsection (a) does not apply to, and no transfer may
25 be made under this Section from, the Pension Stabilization
26 Fund.

 

 

HB4155 - 21 - LRB096 11814 HLH 22657 b

1     (f) Subsection (a) does not apply to, and no transfer may
2 be made under this Section from, the Illinois Power Agency
3 Operations Fund, the Illinois Power Agency Facilities Fund, the
4 Illinois Power Agency Debt Service Fund, and the Illinois Power
5 Agency Trust Fund.
6     (g) This Section does not apply to the Veterans Service
7 Organization Reimbursement Fund.
8     (h) This Section does not apply to the Supreme Court
9 Historic Preservation Fund.
10     (i) This Section does not apply to, and no transfer may be
11 made under this Section from, the Money Follows the Person
12 Budget Transfer Fund.
13 (Source: P.A. 94-91, eff. 7-1-05; 94-120, eff. 7-6-05; 94-511,
14 eff. 1-1-06; 94-535, eff. 8-10-05; 94-639, eff. 8-22-05;
15 94-645, eff. 8-22-05; 94-648, eff. 1-1-06; 94-686, eff.
16 11-2-05; 94-691, eff. 11-2-05; 94-726, eff. 1-20-06; 94-773,
17 eff. 5-18-06; 94-774, eff. 5-19-06; 94-804, eff. 5-26-06;
18 94-839, eff. 6-6-06; 95-331, eff. 8-21-07; 95-410, eff.
19 8-24-07; 95-481, eff. 8-28-07; 95-629, eff. 9-25-07; 95-639,
20 eff. 10-5-07; 95-695, eff. 11-5-07; 95-744, eff. 7-18-08;
21 95-876, eff. 8-21-08.)
 
22     Section 10. The Use Tax Act is amended by changing Sections
23 3-10 as follows:
 
24     (35 ILCS 105/3-10)  (from Ch. 120, par. 439.3-10)

 

 

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1     Sec. 3-10. Rate of tax. Unless otherwise provided in this
2 Section, the tax imposed by this Act is at the rate of 6.25% of
3 either the selling price or the fair market value, if any, of
4 the tangible personal property. In all cases where property
5 functionally used or consumed is the same as the property that
6 was purchased at retail, then the tax is imposed on the selling
7 price of the property. In all cases where property functionally
8 used or consumed is a by-product or waste product that has been
9 refined, manufactured, or produced from property purchased at
10 retail, then the tax is imposed on the lower of the fair market
11 value, if any, of the specific property so used in this State
12 or on the selling price of the property purchased at retail.
13 For purposes of this Section "fair market value" means the
14 price at which property would change hands between a willing
15 buyer and a willing seller, neither being under any compulsion
16 to buy or sell and both having reasonable knowledge of the
17 relevant facts. The fair market value shall be established by
18 Illinois sales by the taxpayer of the same property as that
19 functionally used or consumed, or if there are no such sales by
20 the taxpayer, then comparable sales or purchases of property of
21 like kind and character in Illinois.
22     Beginning on July 1, 2000 and through December 31, 2000 and
23 beginning again July 1, 2009, with respect to motor fuel, as
24 defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
25 as defined in Section 3-40 of the Use Tax Act, the tax is
26 imposed at the rate of 1.25%.

 

 

HB4155 - 23 - LRB096 11814 HLH 22657 b

1     With respect to gasohol, the tax imposed by this Act
2 applies to (i) 70% of the proceeds of sales made on or after
3 January 1, 1990, and before July 1, 2003, (ii) 80% of the
4 proceeds of sales made on or after July 1, 2003 and on or
5 before December 31, 2013, and (iii) 100% of the proceeds of
6 sales made thereafter. If, at any time, however, the tax under
7 this Act on sales of gasohol is imposed at the rate of 1.25%,
8 then the tax imposed by this Act applies to 100% of the
9 proceeds of sales of gasohol made during that time.
10     With respect to majority blended ethanol fuel, the tax
11 imposed by this Act does not apply to the proceeds of sales
12 made on or after July 1, 2003 and on or before December 31,
13 2013 but applies to 100% of the proceeds of sales made
14 thereafter.
15     With respect to biodiesel blends with no less than 1% and
16 no more than 10% biodiesel, the tax imposed by this Act applies
17 to (i) 80% of the proceeds of sales made on or after July 1,
18 2003 and on or before December 31, 2013 and (ii) 100% of the
19 proceeds of sales made thereafter. If, at any time, however,
20 the tax under this Act on sales of biodiesel blends with no
21 less than 1% and no more than 10% biodiesel is imposed at the
22 rate of 1.25%, then the tax imposed by this Act applies to 100%
23 of the proceeds of sales of biodiesel blends with no less than
24 1% and no more than 10% biodiesel made during that time.
25     With respect to 100% biodiesel and biodiesel blends with
26 more than 10% but no more than 99% biodiesel, the tax imposed

 

 

HB4155 - 24 - LRB096 11814 HLH 22657 b

1 by this Act does not apply to the proceeds of sales made on or
2 after July 1, 2003 and on or before December 31, 2013 but
3 applies to 100% of the proceeds of sales made thereafter.
4     With respect to food for human consumption that is to be
5 consumed off the premises where it is sold (other than
6 alcoholic beverages, soft drinks, and food that has been
7 prepared for immediate consumption) and prescription and
8 nonprescription medicines, drugs, medical appliances,
9 modifications to a motor vehicle for the purpose of rendering
10 it usable by a disabled person, and insulin, urine testing
11 materials, syringes, and needles used by diabetics, for human
12 use, the tax is imposed at the rate of 1%. For the purposes of
13 this Section, the term "soft drinks" means any complete,
14 finished, ready-to-use, non-alcoholic drink, whether
15 carbonated or not, including but not limited to soda water,
16 cola, fruit juice, vegetable juice, carbonated water, and all
17 other preparations commonly known as soft drinks of whatever
18 kind or description that are contained in any closed or sealed
19 bottle, can, carton, or container, regardless of size. "Soft
20 drinks" does not include coffee, tea, non-carbonated water,
21 infant formula, milk or milk products as defined in the Grade A
22 Pasteurized Milk and Milk Products Act, or drinks containing
23 50% or more natural fruit or vegetable juice.
24     Notwithstanding any other provisions of this Act, "food for
25 human consumption that is to be consumed off the premises where
26 it is sold" includes all food sold through a vending machine,

 

 

HB4155 - 25 - LRB096 11814 HLH 22657 b

1 except soft drinks and food products that are dispensed hot
2 from a vending machine, regardless of the location of the
3 vending machine.
4     If the property that is purchased at retail from a retailer
5 is acquired outside Illinois and used outside Illinois before
6 being brought to Illinois for use here and is taxable under
7 this Act, the "selling price" on which the tax is computed
8 shall be reduced by an amount that represents a reasonable
9 allowance for depreciation for the period of prior out-of-state
10 use.
11 (Source: P.A. 93-17, eff. 6-11-03.)
 
12     Section 15. The Service Use Tax Act is amended by changing
13 Sections 3-10 as follows:
 
14     (35 ILCS 110/3-10)  (from Ch. 120, par. 439.33-10)
15     Sec. 3-10. Rate of tax. Unless otherwise provided in this
16 Section, the tax imposed by this Act is at the rate of 6.25% of
17 the selling price of tangible personal property transferred as
18 an incident to the sale of service, but, for the purpose of
19 computing this tax, in no event shall the selling price be less
20 than the cost price of the property to the serviceman.
21     Beginning on July 1, 2000 and through December 31, 2000 and
22 beginning again on July 1, 2009, with respect to motor fuel, as
23 defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
24 as defined in Section 3-40 of the Use Tax Act, the tax is

 

 

HB4155 - 26 - LRB096 11814 HLH 22657 b

1 imposed at the rate of 1.25%.
2     With respect to gasohol, as defined in the Use Tax Act, the
3 tax imposed by this Act applies to (i) 70% of the selling price
4 of property transferred as an incident to the sale of service
5 on or after January 1, 1990, and before July 1, 2003, (ii) 80%
6 of the selling price of property transferred as an incident to
7 the sale of service on or after July 1, 2003 and on or before
8 December 31, 2013, and (iii) 100% of the selling price
9 thereafter. If, at any time, however, the tax under this Act on
10 sales of gasohol, as defined in the Use Tax Act, is imposed at
11 the rate of 1.25%, then the tax imposed by this Act applies to
12 100% of the proceeds of sales of gasohol made during that time.
13     With respect to majority blended ethanol fuel, as defined
14 in the Use Tax Act, the tax imposed by this Act does not apply
15 to the selling price of property transferred as an incident to
16 the sale of service on or after July 1, 2003 and on or before
17 December 31, 2013 but applies to 100% of the selling price
18 thereafter.
19     With respect to biodiesel blends, as defined in the Use Tax
20 Act, with no less than 1% and no more than 10% biodiesel, the
21 tax imposed by this Act applies to (i) 80% of the selling price
22 of property transferred as an incident to the sale of service
23 on or after July 1, 2003 and on or before December 31, 2013 and
24 (ii) 100% of the proceeds of the selling price thereafter. If,
25 at any time, however, the tax under this Act on sales of
26 biodiesel blends, as defined in the Use Tax Act, with no less

 

 

HB4155 - 27 - LRB096 11814 HLH 22657 b

1 than 1% and no more than 10% biodiesel is imposed at the rate
2 of 1.25%, then the tax imposed by this Act applies to 100% of
3 the proceeds of sales of biodiesel blends with no less than 1%
4 and no more than 10% biodiesel made during that time.
5     With respect to 100% biodiesel, as defined in the Use Tax
6 Act, and biodiesel blends, as defined in the Use Tax Act, with
7 more than 10% but no more than 99% biodiesel, the tax imposed
8 by this Act does not apply to the proceeds of the selling price
9 of property transferred as an incident to the sale of service
10 on or after July 1, 2003 and on or before December 31, 2013 but
11 applies to 100% of the selling price thereafter.
12     At the election of any registered serviceman made for each
13 fiscal year, sales of service in which the aggregate annual
14 cost price of tangible personal property transferred as an
15 incident to the sales of service is less than 35%, or 75% in
16 the case of servicemen transferring prescription drugs or
17 servicemen engaged in graphic arts production, of the aggregate
18 annual total gross receipts from all sales of service, the tax
19 imposed by this Act shall be based on the serviceman's cost
20 price of the tangible personal property transferred as an
21 incident to the sale of those services.
22     The tax shall be imposed at the rate of 1% on food prepared
23 for immediate consumption and transferred incident to a sale of
24 service subject to this Act or the Service Occupation Tax Act
25 by an entity licensed under the Hospital Licensing Act, the
26 Nursing Home Care Act, or the Child Care Act of 1969. The tax

 

 

HB4155 - 28 - LRB096 11814 HLH 22657 b

1 shall also be imposed at the rate of 1% on food for human
2 consumption that is to be consumed off the premises where it is
3 sold (other than alcoholic beverages, soft drinks, and food
4 that has been prepared for immediate consumption and is not
5 otherwise included in this paragraph) and prescription and
6 nonprescription medicines, drugs, medical appliances,
7 modifications to a motor vehicle for the purpose of rendering
8 it usable by a disabled person, and insulin, urine testing
9 materials, syringes, and needles used by diabetics, for human
10 use. For the purposes of this Section, the term "soft drinks"
11 means any complete, finished, ready-to-use, non-alcoholic
12 drink, whether carbonated or not, including but not limited to
13 soda water, cola, fruit juice, vegetable juice, carbonated
14 water, and all other preparations commonly known as soft drinks
15 of whatever kind or description that are contained in any
16 closed or sealed bottle, can, carton, or container, regardless
17 of size. "Soft drinks" does not include coffee, tea,
18 non-carbonated water, infant formula, milk or milk products as
19 defined in the Grade A Pasteurized Milk and Milk Products Act,
20 or drinks containing 50% or more natural fruit or vegetable
21 juice.
22     Notwithstanding any other provisions of this Act, "food for
23 human consumption that is to be consumed off the premises where
24 it is sold" includes all food sold through a vending machine,
25 except soft drinks and food products that are dispensed hot
26 from a vending machine, regardless of the location of the

 

 

HB4155 - 29 - LRB096 11814 HLH 22657 b

1 vending machine.
2     If the property that is acquired from a serviceman is
3 acquired outside Illinois and used outside Illinois before
4 being brought to Illinois for use here and is taxable under
5 this Act, the "selling price" on which the tax is computed
6 shall be reduced by an amount that represents a reasonable
7 allowance for depreciation for the period of prior out-of-state
8 use.
9 (Source: P.A. 93-17, eff. 6-11-03.)
 
10     Section 20. The Service Occupation Tax Act is amended by
11 changing Sections 3-10 as follows:
 
12     (35 ILCS 115/3-10)  (from Ch. 120, par. 439.103-10)
13     Sec. 3-10. Rate of tax. Unless otherwise provided in this
14 Section, the tax imposed by this Act is at the rate of 6.25% of
15 the "selling price", as defined in Section 2 of the Service Use
16 Tax Act, of the tangible personal property. For the purpose of
17 computing this tax, in no event shall the "selling price" be
18 less than the cost price to the serviceman of the tangible
19 personal property transferred. The selling price of each item
20 of tangible personal property transferred as an incident of a
21 sale of service may be shown as a distinct and separate item on
22 the serviceman's billing to the service customer. If the
23 selling price is not so shown, the selling price of the
24 tangible personal property is deemed to be 50% of the

 

 

HB4155 - 30 - LRB096 11814 HLH 22657 b

1 serviceman's entire billing to the service customer. When,
2 however, a serviceman contracts to design, develop, and produce
3 special order machinery or equipment, the tax imposed by this
4 Act shall be based on the serviceman's cost price of the
5 tangible personal property transferred incident to the
6 completion of the contract.
7     Beginning on July 1, 2000 and through December 31, 2000 and
8 beginning again on July 1, 2009, with respect to motor fuel, as
9 defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
10 as defined in Section 3-40 of the Use Tax Act, the tax is
11 imposed at the rate of 1.25%.
12     With respect to gasohol, as defined in the Use Tax Act, the
13 tax imposed by this Act shall apply to (i) 70% of the cost
14 price of property transferred as an incident to the sale of
15 service on or after January 1, 1990, and before July 1, 2003,
16 (ii) 80% of the selling price of property transferred as an
17 incident to the sale of service on or after July 1, 2003 and on
18 or before December 31, 2013, and (iii) 100% of the cost price
19 thereafter. If, at any time, however, the tax under this Act on
20 sales of gasohol, as defined in the Use Tax Act, is imposed at
21 the rate of 1.25%, then the tax imposed by this Act applies to
22 100% of the proceeds of sales of gasohol made during that time.
23     With respect to majority blended ethanol fuel, as defined
24 in the Use Tax Act, the tax imposed by this Act does not apply
25 to the selling price of property transferred as an incident to
26 the sale of service on or after July 1, 2003 and on or before

 

 

HB4155 - 31 - LRB096 11814 HLH 22657 b

1 December 31, 2013 but applies to 100% of the selling price
2 thereafter.
3     With respect to biodiesel blends, as defined in the Use Tax
4 Act, with no less than 1% and no more than 10% biodiesel, the
5 tax imposed by this Act applies to (i) 80% of the selling price
6 of property transferred as an incident to the sale of service
7 on or after July 1, 2003 and on or before December 31, 2013 and
8 (ii) 100% of the proceeds of the selling price thereafter. If,
9 at any time, however, the tax under this Act on sales of
10 biodiesel blends, as defined in the Use Tax Act, with no less
11 than 1% and no more than 10% biodiesel is imposed at the rate
12 of 1.25%, then the tax imposed by this Act applies to 100% of
13 the proceeds of sales of biodiesel blends with no less than 1%
14 and no more than 10% biodiesel made during that time.
15     With respect to 100% biodiesel, as defined in the Use Tax
16 Act, and biodiesel blends, as defined in the Use Tax Act, with
17 more than 10% but no more than 99% biodiesel material, the tax
18 imposed by this Act does not apply to the proceeds of the
19 selling price of property transferred as an incident to the
20 sale of service on or after July 1, 2003 and on or before
21 December 31, 2013 but applies to 100% of the selling price
22 thereafter.
23     At the election of any registered serviceman made for each
24 fiscal year, sales of service in which the aggregate annual
25 cost price of tangible personal property transferred as an
26 incident to the sales of service is less than 35%, or 75% in

 

 

HB4155 - 32 - LRB096 11814 HLH 22657 b

1 the case of servicemen transferring prescription drugs or
2 servicemen engaged in graphic arts production, of the aggregate
3 annual total gross receipts from all sales of service, the tax
4 imposed by this Act shall be based on the serviceman's cost
5 price of the tangible personal property transferred incident to
6 the sale of those services.
7     The tax shall be imposed at the rate of 1% on food prepared
8 for immediate consumption and transferred incident to a sale of
9 service subject to this Act or the Service Occupation Tax Act
10 by an entity licensed under the Hospital Licensing Act, the
11 Nursing Home Care Act, or the Child Care Act of 1969. The tax
12 shall also be imposed at the rate of 1% on food for human
13 consumption that is to be consumed off the premises where it is
14 sold (other than alcoholic beverages, soft drinks, and food
15 that has been prepared for immediate consumption and is not
16 otherwise included in this paragraph) and prescription and
17 nonprescription medicines, drugs, medical appliances,
18 modifications to a motor vehicle for the purpose of rendering
19 it usable by a disabled person, and insulin, urine testing
20 materials, syringes, and needles used by diabetics, for human
21 use. For the purposes of this Section, the term "soft drinks"
22 means any complete, finished, ready-to-use, non-alcoholic
23 drink, whether carbonated or not, including but not limited to
24 soda water, cola, fruit juice, vegetable juice, carbonated
25 water, and all other preparations commonly known as soft drinks
26 of whatever kind or description that are contained in any

 

 

HB4155 - 33 - LRB096 11814 HLH 22657 b

1 closed or sealed can, carton, or container, regardless of size.
2 "Soft drinks" does not include coffee, tea, non-carbonated
3 water, infant formula, milk or milk products as defined in the
4 Grade A Pasteurized Milk and Milk Products Act, or drinks
5 containing 50% or more natural fruit or vegetable juice.
6     Notwithstanding any other provisions of this Act, "food for
7 human consumption that is to be consumed off the premises where
8 it is sold" includes all food sold through a vending machine,
9 except soft drinks and food products that are dispensed hot
10 from a vending machine, regardless of the location of the
11 vending machine.
12 (Source: P.A. 93-17, eff. 6-11-03.)
 
13     Section 25. The Retailers' Occupation Tax Act is amended by
14 changing Sections 2-10 as follows:
 
15     (35 ILCS 120/2-10)  (from Ch. 120, par. 441-10)
16     Sec. 2-10. Rate of tax. Unless otherwise provided in this
17 Section, the tax imposed by this Act is at the rate of 6.25% of
18 gross receipts from sales of tangible personal property made in
19 the course of business.
20     Beginning on July 1, 2000 and through December 31, 2000 and
21 beginning again on July 1, 2009, with respect to motor fuel, as
22 defined in Section 1.1 of the Motor Fuel Tax Law, and gasohol,
23 as defined in Section 3-40 of the Use Tax Act, the tax is
24 imposed at the rate of 1.25%.

 

 

HB4155 - 34 - LRB096 11814 HLH 22657 b

1     Within 14 days after the effective date of this amendatory
2 Act of the 91st General Assembly, each retailer of motor fuel
3 and gasohol shall cause the following notice to be posted in a
4 prominently visible place on each retail dispensing device that
5 is used to dispense motor fuel or gasohol in the State of
6 Illinois: "As of July 1, 2000, the State of Illinois has
7 eliminated the State's share of sales tax on motor fuel and
8 gasohol through December 31, 2000. The price on this pump
9 should reflect the elimination of the tax." The notice shall be
10 printed in bold print on a sign that is no smaller than 4
11 inches by 8 inches. The sign shall be clearly visible to
12 customers. Any retailer who fails to post or maintain a
13 required sign through December 31, 2000 is guilty of a petty
14 offense for which the fine shall be $500 per day per each
15 retail premises where a violation occurs.
16     With respect to gasohol, as defined in the Use Tax Act, the
17 tax imposed by this Act applies to (i) 70% of the proceeds of
18 sales made on or after January 1, 1990, and before July 1,
19 2003, (ii) 80% of the proceeds of sales made on or after July
20 1, 2003 and on or before December 31, 2013, and (iii) 100% of
21 the proceeds of sales made thereafter. If, at any time,
22 however, the tax under this Act on sales of gasohol, as defined
23 in the Use Tax Act, is imposed at the rate of 1.25%, then the
24 tax imposed by this Act applies to 100% of the proceeds of
25 sales of gasohol made during that time.
26     With respect to majority blended ethanol fuel, as defined

 

 

HB4155 - 35 - LRB096 11814 HLH 22657 b

1 in the Use Tax Act, the tax imposed by this Act does not apply
2 to the proceeds of sales made on or after July 1, 2003 and on or
3 before December 31, 2013 but applies to 100% of the proceeds of
4 sales made thereafter.
5     With respect to biodiesel blends, as defined in the Use Tax
6 Act, with no less than 1% and no more than 10% biodiesel, the
7 tax imposed by this Act applies to (i) 80% of the proceeds of
8 sales made on or after July 1, 2003 and on or before December
9 31, 2013 and (ii) 100% of the proceeds of sales made
10 thereafter. If, at any time, however, the tax under this Act on
11 sales of biodiesel blends, as defined in the Use Tax Act, with
12 no less than 1% and no more than 10% biodiesel is imposed at
13 the rate of 1.25%, then the tax imposed by this Act applies to
14 100% of the proceeds of sales of biodiesel blends with no less
15 than 1% and no more than 10% biodiesel made during that time.
16     With respect to 100% biodiesel, as defined in the Use Tax
17 Act, and biodiesel blends, as defined in the Use Tax Act, with
18 more than 10% but no more than 99% biodiesel, the tax imposed
19 by this Act does not apply to the proceeds of sales made on or
20 after July 1, 2003 and on or before December 31, 2013 but
21 applies to 100% of the proceeds of sales made thereafter.
22     With respect to food for human consumption that is to be
23 consumed off the premises where it is sold (other than
24 alcoholic beverages, soft drinks, and food that has been
25 prepared for immediate consumption) and prescription and
26 nonprescription medicines, drugs, medical appliances,

 

 

HB4155 - 36 - LRB096 11814 HLH 22657 b

1 modifications to a motor vehicle for the purpose of rendering
2 it usable by a disabled person, and insulin, urine testing
3 materials, syringes, and needles used by diabetics, for human
4 use, the tax is imposed at the rate of 1%. For the purposes of
5 this Section, the term "soft drinks" means any complete,
6 finished, ready-to-use, non-alcoholic drink, whether
7 carbonated or not, including but not limited to soda water,
8 cola, fruit juice, vegetable juice, carbonated water, and all
9 other preparations commonly known as soft drinks of whatever
10 kind or description that are contained in any closed or sealed
11 bottle, can, carton, or container, regardless of size. "Soft
12 drinks" does not include coffee, tea, non-carbonated water,
13 infant formula, milk or milk products as defined in the Grade A
14 Pasteurized Milk and Milk Products Act, or drinks containing
15 50% or more natural fruit or vegetable juice.
16     Notwithstanding any other provisions of this Act, "food for
17 human consumption that is to be consumed off the premises where
18 it is sold" includes all food sold through a vending machine,
19 except soft drinks and food products that are dispensed hot
20 from a vending machine, regardless of the location of the
21 vending machine.
22 (Source: P.A. 93-17, eff. 6-11-03.)
 
23     Section 30. The Motor Fuel Tax Law is amended by changing
24 Sections 2 and 8 and by adding Section 8b as follows:
 

 

 

HB4155 - 37 - LRB096 11814 HLH 22657 b

1     (35 ILCS 505/2)  (from Ch. 120, par. 418)
2     Sec. 2. A tax is imposed on the privilege of operating
3 motor vehicles upon the public highways and recreational-type
4 watercraft upon the waters of this State.
5     (a) Prior to August 1, 1989, the tax is imposed at the rate
6 of 13 cents per gallon on all motor fuel used in motor vehicles
7 operating on the public highways and recreational type
8 watercraft operating upon the waters of this State. Beginning
9 on August 1, 1989 and until January 1, 1990, the rate of the
10 tax imposed in this paragraph shall be 16 cents per gallon.
11 Beginning January 1, 1990, the rate of tax imposed in this
12 paragraph shall be 19 cents per gallon.
13     (b) The tax on the privilege of operating motor vehicles
14 which use diesel fuel shall be the rate according to paragraph
15 (a) plus an additional 2 1/2 cents per gallon. "Diesel fuel" is
16 defined as any product intended for use or offered for sale as
17 a fuel for engines in which the fuel is injected into the
18 combustion chamber and ignited by pressure without electric
19 spark.
20     (c) A tax is imposed upon the privilege of engaging in the
21 business of selling motor fuel as a retailer or reseller on all
22 motor fuel used in motor vehicles operating on the public
23 highways and recreational type watercraft operating upon the
24 waters of this State: (1) at the rate of 3 cents per gallon on
25 motor fuel owned or possessed by such retailer or reseller at
26 12:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents per

 

 

HB4155 - 38 - LRB096 11814 HLH 22657 b

1 gallon on motor fuel owned or possessed by such retailer or
2 reseller at 12:01 A.M. on January 1, 1990.
3     Retailers and resellers who are subject to this additional
4 tax shall be required to inventory such motor fuel and pay this
5 additional tax in a manner prescribed by the Department of
6 Revenue.
7     The tax imposed in this paragraph (c) shall be in addition
8 to all other taxes imposed by the State of Illinois or any unit
9 of local government in this State.
10     (d) Except as provided in Section 2a, the collection of a
11 tax based on gallonage of gasoline used for the propulsion of
12 any aircraft is prohibited on and after October 1, 1979.
13     (e) The collection of a tax, based on gallonage of all
14 products commonly or commercially known or sold as 1-K
15 kerosene, regardless of its classification or uses, is
16 prohibited (i) on and after July 1, 1992 until December 31,
17 1999, except when the 1-K kerosene is either: (1) delivered
18 into bulk storage facilities of a bulk user, or (2) delivered
19 directly into the fuel supply tanks of motor vehicles and (ii)
20 on and after January 1, 2000. Beginning on January 1, 2000, the
21 collection of a tax, based on gallonage of all products
22 commonly or commercially known or sold as 1-K kerosene,
23 regardless of its classification or uses, is prohibited except
24 when the 1-K kerosene is delivered directly into a storage tank
25 that is located at a facility that has withdrawal facilities
26 that are readily accessible to and are capable of dispensing

 

 

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1 1-K kerosene into the fuel supply tanks of motor vehicles.
2     Any person who sells or uses 1-K kerosene for use in motor
3 vehicles upon which the tax imposed by this Law has not been
4 paid shall be liable for any tax due on the sales or use of 1-K
5 kerosene.
6     (f) In addition to the taxes established in the foregoing
7 subsections, a tax is imposed on the privilege of operating
8 motor vehicles upon the public highways and operating
9 recreational type watercraft upon the waters of this State. For
10 State fiscal year 2010, the tax imposed by this paragraph is at
11 the rate of $0.150 per gallon on all motor fuel used in motor
12 vehicles operating on the public highways, recreational type
13 watercraft operating upon the waters, special fuel as defined
14 in Section 1.13, and diesel fuel sold in this State. For each
15 State fiscal year thereafter, the rate of tax is adjusted over
16 the tax rate of the previous State fiscal year by the annual
17 rate of increase or decrease, for the previous calendar year,
18 of the Consumer Price Index for All Urban Consumers for all
19 items, published by the United States Bureau of Labor
20 Statistics. The purpose of this tax is to provide grants to
21 public entities in the State of Illinois for transportation
22 purposes as provided in Section 8b of this Act.
23 (Source: P.A. 93-17, eff. 6-11-03.)
 
24     (35 ILCS 505/8)  (from Ch. 120, par. 424)
25     Sec. 8. Except as provided in Section 8a, Section 8b,

 

 

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1 subdivision (h)(1) of Section 12a, Section 13a.6, and items 13,
2 14, 15, and 16 of Section 15, all money received by the
3 Department under this Act, including payments made to the
4 Department by member jurisdictions participating in the
5 International Fuel Tax Agreement, shall be deposited in a
6 special fund in the State treasury, to be known as the "Motor
7 Fuel Tax Fund", and shall be used as follows:
8     (a) 2 1/2 cents per gallon of the tax collected on special
9 fuel under paragraph (b) of Section 2 and Section 13a of this
10 Act shall be transferred to the State Construction Account Fund
11 in the State Treasury;
12     (b) $420,000 shall be transferred each month to the State
13 Boating Act Fund to be used by the Department of Natural
14 Resources for the purposes specified in Article X of the Boat
15 Registration and Safety Act;
16     (c) $2,250,000 shall be transferred each month to the Grade
17 Crossing Protection Fund to be used as follows: not less than
18 $6,000,000 each fiscal year shall be used for the construction
19 or reconstruction of rail highway grade separation structures;
20 $2,250,000 in fiscal year 2004 and each fiscal year thereafter
21 shall be transferred to the Transportation Regulatory Fund and
22 shall be accounted for as part of the rail carrier portion of
23 such funds and shall be used to pay the cost of administration
24 of the Illinois Commerce Commission's railroad safety program
25 in connection with its duties under subsection (3) of Section
26 18c-7401 of the Illinois Vehicle Code, with the remainder to be

 

 

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1 used by the Department of Transportation upon order of the
2 Illinois Commerce Commission, to pay that part of the cost
3 apportioned by such Commission to the State to cover the
4 interest of the public in the use of highways, roads, streets,
5 or pedestrian walkways in the county highway system, township
6 and district road system, or municipal street system as defined
7 in the Illinois Highway Code, as the same may from time to time
8 be amended, for separation of grades, for installation,
9 construction or reconstruction of crossing protection or
10 reconstruction, alteration, relocation including construction
11 or improvement of any existing highway necessary for access to
12 property or improvement of any grade crossing including the
13 necessary highway approaches thereto of any railroad across the
14 highway or public road, or for the installation, construction,
15 reconstruction, or maintenance of a pedestrian walkway over or
16 under a railroad right-of-way, as provided for in and in
17 accordance with Section 18c-7401 of the Illinois Vehicle Code.
18 The Commission shall not order more than $2,000,000 per year in
19 Grade Crossing Protection Fund moneys for pedestrian walkways.
20 In entering orders for projects for which payments from the
21 Grade Crossing Protection Fund will be made, the Commission
22 shall account for expenditures authorized by the orders on a
23 cash rather than an accrual basis. For purposes of this
24 requirement an "accrual basis" assumes that the total cost of
25 the project is expended in the fiscal year in which the order
26 is entered, while a "cash basis" allocates the cost of the

 

 

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1 project among fiscal years as expenditures are actually made.
2 To meet the requirements of this subsection, the Illinois
3 Commerce Commission shall develop annual and 5-year project
4 plans of rail crossing capital improvements that will be paid
5 for with moneys from the Grade Crossing Protection Fund. The
6 annual project plan shall identify projects for the succeeding
7 fiscal year and the 5-year project plan shall identify projects
8 for the 5 directly succeeding fiscal years. The Commission
9 shall submit the annual and 5-year project plans for this Fund
10 to the Governor, the President of the Senate, the Senate
11 Minority Leader, the Speaker of the House of Representatives,
12 and the Minority Leader of the House of Representatives on the
13 first Wednesday in April of each year;
14     (d) of the amount remaining after allocations provided for
15 in subsections (a), (b) and (c), a sufficient amount shall be
16 reserved to pay all of the following:
17         (1) the costs of the Department of Revenue in
18     administering this Act;
19         (2) the costs of the Department of Transportation in
20     performing its duties imposed by the Illinois Highway Code
21     for supervising the use of motor fuel tax funds apportioned
22     to municipalities, counties and road districts;
23         (3) refunds provided for in Section 13 of this Act and
24     under the terms of the International Fuel Tax Agreement
25     referenced in Section 14a;
26         (4) from October 1, 1985 until June 30, 1994, the

 

 

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1     administration of the Vehicle Emissions Inspection Law,
2     which amount shall be certified monthly by the
3     Environmental Protection Agency to the State Comptroller
4     and shall promptly be transferred by the State Comptroller
5     and Treasurer from the Motor Fuel Tax Fund to the Vehicle
6     Inspection Fund, and for the period July 1, 1994 through
7     June 30, 2000, one-twelfth of $25,000,000 each month, for
8     the period July 1, 2000 through June 30, 2003, one-twelfth
9     of $30,000,000 each month, and $15,000,000 on July 1, 2003,
10     and $15,000,000 on January 1, 2004, and $15,000,000 on each
11     July 1 and October 1, or as soon thereafter as may be
12     practical, during the period July 1, 2004 through June 30,
13     2009, for the administration of the Vehicle Emissions
14     Inspection Law of 2005, to be transferred by the State
15     Comptroller and Treasurer from the Motor Fuel Tax Fund into
16     the Vehicle Inspection Fund;
17         (5) amounts ordered paid by the Court of Claims; and
18         (6) payment of motor fuel use taxes due to member
19     jurisdictions under the terms of the International Fuel Tax
20     Agreement. The Department shall certify these amounts to
21     the Comptroller by the 15th day of each month; the
22     Comptroller shall cause orders to be drawn for such
23     amounts, and the Treasurer shall administer those amounts
24     on or before the last day of each month;
25     (e) after allocations for the purposes set forth in
26 subsections (a), (b), (c) and (d), the remaining amount shall

 

 

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1 be apportioned as follows:
2         (1) Until January 1, 2000, 58.4%, and beginning January
3     1, 2000, 45.6% shall be deposited as follows:
4             (A) 37% into the State Construction Account Fund,
5         and
6             (B) 63% into the Road Fund, $1,250,000 of which
7         shall be reserved each month for the Department of
8         Transportation to be used in accordance with the
9         provisions of Sections 6-901 through 6-906 of the
10         Illinois Highway Code;
11         (2) Until January 1, 2000, 41.6%, and beginning January
12     1, 2000, 54.4% shall be transferred to the Department of
13     Transportation to be distributed as follows:
14             (A) 49.10% to the municipalities of the State,
15             (B) 16.74% to the counties of the State having
16         1,000,000 or more inhabitants,
17             (C) 18.27% to the counties of the State having less
18         than 1,000,000 inhabitants,
19             (D) 15.89% to the road districts of the State.
20     As soon as may be after the first day of each month the
21 Department of Transportation shall allot to each municipality
22 its share of the amount apportioned to the several
23 municipalities which shall be in proportion to the population
24 of such municipalities as determined by the last preceding
25 municipal census if conducted by the Federal Government or
26 Federal census. If territory is annexed to any municipality

 

 

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1 subsequent to the time of the last preceding census the
2 corporate authorities of such municipality may cause a census
3 to be taken of such annexed territory and the population so
4 ascertained for such territory shall be added to the population
5 of the municipality as determined by the last preceding census
6 for the purpose of determining the allotment for that
7 municipality. If the population of any municipality was not
8 determined by the last Federal census preceding any
9 apportionment, the apportionment to such municipality shall be
10 in accordance with any census taken by such municipality. Any
11 municipal census used in accordance with this Section shall be
12 certified to the Department of Transportation by the clerk of
13 such municipality, and the accuracy thereof shall be subject to
14 approval of the Department which may make such corrections as
15 it ascertains to be necessary.
16     As soon as may be after the first day of each month the
17 Department of Transportation shall allot to each county its
18 share of the amount apportioned to the several counties of the
19 State as herein provided. Each allotment to the several
20 counties having less than 1,000,000 inhabitants shall be in
21 proportion to the amount of motor vehicle license fees received
22 from the residents of such counties, respectively, during the
23 preceding calendar year. The Secretary of State shall, on or
24 before April 15 of each year, transmit to the Department of
25 Transportation a full and complete report showing the amount of
26 motor vehicle license fees received from the residents of each

 

 

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1 county, respectively, during the preceding calendar year. The
2 Department of Transportation shall, each month, use for
3 allotment purposes the last such report received from the
4 Secretary of State.
5     As soon as may be after the first day of each month, the
6 Department of Transportation shall allot to the several
7 counties their share of the amount apportioned for the use of
8 road districts. The allotment shall be apportioned among the
9 several counties in the State in the proportion which the total
10 mileage of township or district roads in the respective
11 counties bears to the total mileage of all township and
12 district roads in the State. Funds allotted to the respective
13 counties for the use of road districts therein shall be
14 allocated to the several road districts in the county in the
15 proportion which the total mileage of such township or district
16 roads in the respective road districts bears to the total
17 mileage of all such township or district roads in the county.
18 After July 1 of any year, no allocation shall be made for any
19 road district unless it levied a tax for road and bridge
20 purposes in an amount which will require the extension of such
21 tax against the taxable property in any such road district at a
22 rate of not less than either .08% of the value thereof, based
23 upon the assessment for the year immediately prior to the year
24 in which such tax was levied and as equalized by the Department
25 of Revenue or, in DuPage County, an amount equal to or greater
26 than $12,000 per mile of road under the jurisdiction of the

 

 

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1 road district, whichever is less. If any road district has
2 levied a special tax for road purposes pursuant to Sections
3 6-601, 6-602 and 6-603 of the Illinois Highway Code, and such
4 tax was levied in an amount which would require extension at a
5 rate of not less than .08% of the value of the taxable property
6 thereof, as equalized or assessed by the Department of Revenue,
7 or, in DuPage County, an amount equal to or greater than
8 $12,000 per mile of road under the jurisdiction of the road
9 district, whichever is less, such levy shall, however, be
10 deemed a proper compliance with this Section and shall qualify
11 such road district for an allotment under this Section. If a
12 township has transferred to the road and bridge fund money
13 which, when added to the amount of any tax levy of the road
14 district would be the equivalent of a tax levy requiring
15 extension at a rate of at least .08%, or, in DuPage County, an
16 amount equal to or greater than $12,000 per mile of road under
17 the jurisdiction of the road district, whichever is less, such
18 transfer, together with any such tax levy, shall be deemed a
19 proper compliance with this Section and shall qualify the road
20 district for an allotment under this Section.
21     In counties in which a property tax extension limitation is
22 imposed under the Property Tax Extension Limitation Law, road
23 districts may retain their entitlement to a motor fuel tax
24 allotment if, at the time the property tax extension limitation
25 was imposed, the road district was levying a road and bridge
26 tax at a rate sufficient to entitle it to a motor fuel tax

 

 

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1 allotment and continues to levy the maximum allowable amount
2 after the imposition of the property tax extension limitation.
3 Any road district may in all circumstances retain its
4 entitlement to a motor fuel tax allotment if it levied a road
5 and bridge tax in an amount that will require the extension of
6 the tax against the taxable property in the road district at a
7 rate of not less than 0.08% of the assessed value of the
8 property, based upon the assessment for the year immediately
9 preceding the year in which the tax was levied and as equalized
10 by the Department of Revenue or, in DuPage County, an amount
11 equal to or greater than $12,000 per mile of road under the
12 jurisdiction of the road district, whichever is less.
13     As used in this Section the term "road district" means any
14 road district, including a county unit road district, provided
15 for by the Illinois Highway Code; and the term "township or
16 district road" means any road in the township and district road
17 system as defined in the Illinois Highway Code. For the
18 purposes of this Section, "road district" also includes park
19 districts, forest preserve districts and conservation
20 districts organized under Illinois law and "township or
21 district road" also includes such roads as are maintained by
22 park districts, forest preserve districts and conservation
23 districts. The Department of Transportation shall determine
24 the mileage of all township and district roads for the purposes
25 of making allotments and allocations of motor fuel tax funds
26 for use in road districts.

 

 

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1     Payment of motor fuel tax moneys to municipalities and
2 counties shall be made as soon as possible after the allotment
3 is made. The treasurer of the municipality or county may invest
4 these funds until their use is required and the interest earned
5 by these investments shall be limited to the same uses as the
6 principal funds.
7 (Source: P.A. 94-839, eff. 6-6-06; 95-744, eff. 7-18-08.)
 
8     (35 ILCS 505/8b new)
9     Sec. 8b. Distribution of proceeds into the Metropolitan
10 Transit and Road Improvement Fund.
11     (a) All money received by the Department under paragraph
12 (f) of Section 2 of this Act shall be deposited into a special
13 fund in the State treasury, to be known as the Metropolitan
14 Transit and Road Improvement Fund, and must be apportioned and
15 disbursed as follows:
16         (1) All of the proceeds collected from within the
17     counties of Cook, Lake, DuPage, Kane, McHenry, and Will
18     shall be distributed to the Regional Transportation
19     Authority and must be used to make grants to the service
20     boards for mass transit-related purposes.
21         (2) All of the proceeds collected from outside the
22     counties of Cook, Lake, DuPage, Kane, McHenry, and Will
23     shall be distributed to the Illinois Department of
24     Transportation and must be used for the following
25     transportation-related purposes in counties other than

 

 

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1     Cook, Lake, DuPage, Kane, McHenry, and Will: (i) the Road
2     Fund; (ii) the Downstate Transit Improvement Fund; and
3     (iii) payments made by the Department of Transportation to
4     Amtrak for passenger-train service in Illinois.
5     (c) The disbursement of any moneys under this Section may
6 not reduce any amount to be appropriated to a municipality,
7 township, or county, under any statutory local highway program
8 or discretionary local highway program.
 
9     Section 97. Severability. The provisions of this Act are
10 severable under Section 1.31 of the Statute on Statutes.
 
11     Section 99. Effective date. This Act takes effect July 1,
12 2009.