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| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB4631 Introduced , by Rep. Mike Smiddy SYNOPSIS AS INTRODUCED: |
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Amends the Counties Code. Increases the maximum rate for the county school facility occupation tax from 1% to 2%. Provides that, in addition to the uses currently provided for by law, proceeds from the tax may also be used for transportation costs and technology investments. Effective July 1, 2016.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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1 | | AN ACT concerning revenue.
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2 | | Be it enacted by the People of the State of Illinois,
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3 | | represented in the General Assembly:
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4 | | Section 5. The Counties Code is amended by changing Section |
5 | | 5-1006.7 as follows: |
6 | | (55 ILCS 5/5-1006.7) |
7 | | Sec. 5-1006.7. School facility occupation taxes. |
8 | | (a) In any county, a tax shall be imposed upon all persons |
9 | | engaged in the business of selling tangible personal property, |
10 | | other than personal property titled or registered with an |
11 | | agency of this State's government, at retail in the county on |
12 | | the gross receipts from the sales made in the course of |
13 | | business to provide revenue to be used exclusively for school |
14 | | facility purposes if a proposition for the tax has been |
15 | | submitted to the electors of that county and approved by a |
16 | | majority of those voting on the question as provided in |
17 | | subsection (c). The tax under this Section shall be imposed |
18 | | only in one-quarter percent increments and may not exceed 2% |
19 | | 1% . |
20 | | This additional tax may not be imposed on the sale of food |
21 | | for human consumption that is to be consumed off the premises |
22 | | where it is sold (other than alcoholic beverages, soft drinks, |
23 | | and food that has been prepared for immediate consumption) and |
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1 | | prescription and non-prescription medicines, drugs, medical |
2 | | appliances and insulin, urine testing materials, syringes and |
3 | | needles used by diabetics.
The Department of Revenue has full |
4 | | power to administer and enforce this subsection, to collect all |
5 | | taxes and penalties due under this subsection, to dispose of |
6 | | taxes and penalties so collected in the manner provided in this |
7 | | subsection, and to determine all rights to credit memoranda |
8 | | arising on account of the erroneous payment of a tax or penalty |
9 | | under this subsection. The Department shall deposit all taxes |
10 | | and penalties collected under this subsection into a special |
11 | | fund created for that purpose. |
12 | | In the administration of and compliance with this |
13 | | subsection, the Department and persons who are subject to this |
14 | | subsection (i) have the same rights, remedies, privileges, |
15 | | immunities, powers, and duties, (ii) are subject to the same |
16 | | conditions, restrictions, limitations, penalties, and |
17 | | definitions of terms, and (iii) shall employ the same modes of |
18 | | procedure as are set forth in Sections 1 through 1o, 2 through |
19 | | 2-70 (in respect to all provisions contained in those Sections |
20 | | other than the State rate of tax), 2a through 2h, 3 (except as |
21 | | to the disposition of taxes and penalties collected), 4, 5, 5a, |
22 | | 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, |
23 | | 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation |
24 | | Tax Act and all provisions of the Uniform Penalty and Interest |
25 | | Act as if those provisions were set forth in this subsection. |
26 | | The certificate of registration that is issued by the |
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1 | | Department to a retailer under the Retailers' Occupation Tax |
2 | | Act permits the retailer to engage in a business that is |
3 | | taxable without registering separately with the Department |
4 | | under an ordinance or resolution under this subsection. |
5 | | Persons subject to any tax imposed under the authority |
6 | | granted in this subsection may reimburse themselves for their |
7 | | seller's tax liability by separately stating that tax as an |
8 | | additional charge, which may be stated in combination, in a |
9 | | single amount, with State tax that sellers are required to |
10 | | collect under the Use Tax Act, pursuant to any bracketed |
11 | | schedules set forth by the Department. |
12 | | (b) If a tax has been imposed under subsection (a), then a |
13 | | service occupation tax must also be imposed at the same rate |
14 | | upon all persons engaged, in the county, in the business of |
15 | | making sales of service, who, as an incident to making those |
16 | | sales of service, transfer tangible personal property within |
17 | | the county as an incident to a sale of service. |
18 | | This tax may not be imposed on sales of food for human |
19 | | consumption that is to be consumed off the premises where it is |
20 | | sold (other than alcoholic beverages, soft drinks, and food |
21 | | prepared for immediate consumption) and prescription and |
22 | | non-prescription medicines, drugs, medical appliances and |
23 | | insulin, urine testing materials, syringes, and needles used by |
24 | | diabetics. |
25 | | The tax imposed under this subsection and all civil |
26 | | penalties that may be assessed as an incident thereof shall be |
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1 | | collected and enforced by the Department and deposited into a |
2 | | special fund created for that purpose. The Department has full |
3 | | power to administer and enforce this subsection, to collect all |
4 | | taxes and penalties due under this subsection, to dispose of |
5 | | taxes and penalties so collected in the manner provided in this |
6 | | subsection, and to determine all rights to credit memoranda |
7 | | arising on account of the erroneous payment of a tax or penalty |
8 | | under this subsection. |
9 | | In the administration of and compliance with this |
10 | | subsection, the Department and persons who are subject to this |
11 | | subsection shall (i) have the same rights, remedies, |
12 | | privileges, immunities, powers and duties, (ii) be subject to |
13 | | the same conditions, restrictions, limitations, penalties and |
14 | | definition of terms, and (iii) employ the same modes of |
15 | | procedure as are set forth in Sections 2 (except that that |
16 | | reference to State in the definition of supplier maintaining a |
17 | | place of business in this State means the county), 2a through |
18 | | 2d, 3 through 3-50 (in respect to all provisions contained in |
19 | | those Sections other than the State rate of tax), 4 (except |
20 | | that the reference to the State shall be to the county), 5, 7, |
21 | | 8 (except that the jurisdiction to which the tax is a debt to |
22 | | the extent indicated in that Section 8 is the county), 9 |
23 | | (except as to the disposition of taxes and penalties |
24 | | collected), 10, 11, 12 (except the reference therein to Section |
25 | | 2b of the Retailers' Occupation Tax Act), 13 (except that any |
26 | | reference to the State means the county), Section 15, 16, 17, |
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1 | | 18, 19, and 20 of the Service Occupation Tax Act and all |
2 | | provisions of the Uniform Penalty and Interest Act, as fully as |
3 | | if those provisions were set forth herein. |
4 | | Persons subject to any tax imposed under the authority |
5 | | granted in this subsection may reimburse themselves for their |
6 | | serviceman's tax liability by separately stating the tax as an |
7 | | additional charge, which may be stated in combination, in a |
8 | | single amount, with State tax that servicemen are authorized to |
9 | | collect under the Service Use Tax Act, pursuant to any |
10 | | bracketed schedules set forth by the Department. |
11 | | (c) The tax under this Section may not be imposed until the |
12 | | question of imposing the tax has been submitted to the electors |
13 | | of the county at a regular election and approved by a majority |
14 | | of the electors voting on the question. For all regular |
15 | | elections held prior to August 23, 2011 ( the effective date of |
16 | | Public Act 97-542) this amendatory Act of the 97th General |
17 | | Assembly , upon a resolution by the county board or a resolution |
18 | | by school district boards that represent at least 51% of the |
19 | | student enrollment within the county, the county board must |
20 | | certify the question to the proper election authority in |
21 | | accordance with the Election Code. |
22 | | For all regular elections held prior to August 23, 2011 |
23 | | ( the effective date of Public Act 97-542) this amendatory Act |
24 | | of the 97th General Assembly , the election authority must |
25 | | submit the question in substantially the following form: |
26 | | Shall (name of county) be authorized to impose a |
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1 | | retailers' occupation tax and a service occupation tax |
2 | | (commonly referred to as a "sales tax") at a rate of |
3 | | (insert rate) to be used exclusively for school facility |
4 | | purposes? |
5 | | The election authority must record the votes as "Yes" or "No". |
6 | | If a majority of the electors voting on the question vote |
7 | | in the affirmative, then the county may, thereafter, impose the |
8 | | tax. |
9 | | For all regular elections held on or after August 23, 2011 |
10 | | ( the effective date of Public Act 97-542) this amendatory Act |
11 | | of the 97th General Assembly , the regional superintendent of |
12 | | schools for the county must, upon receipt of a resolution or |
13 | | resolutions of school district boards that represent more than |
14 | | 50% of the student enrollment within the county, certify the |
15 | | question to the proper election authority for submission to the |
16 | | electors of the county at the next regular election at which |
17 | | the question lawfully may be submitted to the electors, all in |
18 | | accordance with the Election Code. |
19 | | For all regular elections held on or after August 23, 2011 |
20 | | ( the effective date of Public Act 97-542) this amendatory Act |
21 | | of the 97th General Assembly , the election authority must |
22 | | submit the question in substantially the following form: |
23 | | Shall a retailers' occupation tax and a service |
24 | | occupation tax (commonly referred to as a "sales tax") be |
25 | | imposed in (name of county) at a rate of (insert rate) to |
26 | | be used exclusively for school facility purposes? |
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1 | | The election authority must record the votes as "Yes" or "No". |
2 | | If a majority of the electors voting on the question vote |
3 | | in the affirmative, then the tax shall be imposed at the rate |
4 | | set forth in the question. |
5 | | For the purposes of this subsection (c), "enrollment" means |
6 | | the head count of the students residing in the county on the |
7 | | last school day of September of each year, which must be |
8 | | reported on the Illinois State Board of Education Public School |
9 | | Fall Enrollment/Housing Report.
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10 | | (d) The Department shall immediately pay over to the State |
11 | | Treasurer, ex officio, as trustee, all taxes and penalties |
12 | | collected under this Section to be deposited into the School |
13 | | Facility Occupation Tax Fund, which shall be an unappropriated |
14 | | trust fund held outside the State treasury. |
15 | | On or before the 25th day of each calendar month, the |
16 | | Department shall prepare and certify to the Comptroller the |
17 | | disbursement of stated sums of money to the regional |
18 | | superintendents of schools in counties from which retailers or |
19 | | servicemen have paid taxes or penalties to the Department |
20 | | during the second preceding calendar month. The amount to be |
21 | | paid to each regional superintendent of schools and disbursed |
22 | | to him or her in accordance with Section 3-14.31 of the School |
23 | | Code, is equal to the amount (not including credit memoranda) |
24 | | collected from the county under this Section during the second |
25 | | preceding calendar month by the Department, (i) less 2% of that |
26 | | amount, which shall be deposited into the Tax Compliance and |
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1 | | Administration Fund and shall be used by the Department, |
2 | | subject to appropriation, to cover the costs of the Department |
3 | | in administering and enforcing the provisions of this Section, |
4 | | on behalf of the county, (ii) plus an amount that the |
5 | | Department determines is necessary to offset any amounts that |
6 | | were erroneously paid to a different taxing body; (iii) less an |
7 | | amount equal to the amount of refunds made during the second |
8 | | preceding calendar month by the Department on behalf of the |
9 | | county; and (iv) less any amount that the Department determines |
10 | | is necessary to offset any amounts that were payable to a |
11 | | different taxing body but were erroneously paid to the county. |
12 | | When certifying the amount of a monthly disbursement to a |
13 | | regional superintendent of schools under this Section, the |
14 | | Department shall increase or decrease the amounts by an amount |
15 | | necessary to offset any miscalculation of previous |
16 | | disbursements within the previous 6 months from the time a |
17 | | miscalculation is discovered. |
18 | | Within 10 days after receipt by the Comptroller from the |
19 | | Department of the disbursement certification to the regional |
20 | | superintendents of the schools provided for in this Section, |
21 | | the Comptroller shall cause the orders to be drawn for the |
22 | | respective amounts in accordance with directions contained in |
23 | | the certification. |
24 | | If the Department determines that a refund should be made |
25 | | under this Section to a claimant instead of issuing a credit |
26 | | memorandum, then the Department shall notify the Comptroller, |
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1 | | who shall cause the order to be drawn for the amount specified |
2 | | and to the person named in the notification from the |
3 | | Department. The refund shall be paid by the Treasurer out of |
4 | | the School Facility Occupation Tax Fund.
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5 | | (e) For the purposes of determining the local governmental |
6 | | unit whose tax is applicable, a retail sale by a producer of |
7 | | coal or another mineral mined in Illinois is a sale at retail |
8 | | at the place where the coal or other mineral mined in Illinois |
9 | | is extracted from the earth. This subsection does not apply to |
10 | | coal or another mineral when it is delivered or shipped by the |
11 | | seller to the purchaser at a point outside Illinois so that the |
12 | | sale is exempt under the United States Constitution as a sale |
13 | | in interstate or foreign commerce. |
14 | | (f) Nothing in this Section may be construed to authorize a |
15 | | tax to be imposed upon the privilege of engaging in any |
16 | | business that under the Constitution of the United States may |
17 | | not be made the subject of taxation by this State. |
18 | | (g) If a county board imposes a tax under this Section |
19 | | pursuant to a referendum held before August 23, 2011 ( the |
20 | | effective date of Public Act 97-542) this amendatory Act of the |
21 | | 97th General Assembly at a rate below the rate set forth in the |
22 | | question approved by a majority of electors of that county |
23 | | voting on the question as provided in subsection (c), then the |
24 | | county board may, by ordinance, increase the rate of the tax up |
25 | | to the rate set forth in the question approved by a majority of |
26 | | electors of that county voting on the question as provided in |
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1 | | subsection (c). If a county board imposes a tax under this |
2 | | Section pursuant to a referendum held before August 23, 2011 |
3 | | ( the effective date of Public Act 97-542) this amendatory Act |
4 | | of the 97th General Assembly , then the board may, by ordinance, |
5 | | discontinue or reduce the rate of the tax. If a tax is imposed |
6 | | under this Section pursuant to a referendum held on or after |
7 | | August 23, 2011 ( the effective date of Public Act 97-542) this |
8 | | amendatory Act of the 97th General Assembly , then the county |
9 | | board may reduce or discontinue the tax, but only in accordance |
10 | | with subsection (h-5) of this Section. If, however, a school |
11 | | board issues bonds that are secured by the proceeds of the tax |
12 | | under this Section, then the county board may not reduce the |
13 | | tax rate or discontinue the tax if that rate reduction or |
14 | | discontinuance would adversely affect the school board's |
15 | | ability to pay the principal and interest on those bonds as |
16 | | they become due or necessitate the extension of additional |
17 | | property taxes to pay the principal and interest on those |
18 | | bonds. If the county board reduces the tax rate or discontinues |
19 | | the tax, then a referendum must be held in accordance with |
20 | | subsection (c) of this Section in order to increase the rate of |
21 | | the tax or to reimpose the discontinued tax. |
22 | | Until January 1, 2014, the results of any election that |
23 | | imposes, reduces, or discontinues a tax under this Section must |
24 | | be certified by the election authority, and any ordinance that |
25 | | increases or lowers the rate or discontinues the tax must be |
26 | | certified by the county clerk and, in each case, filed with the |
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1 | | Illinois Department of Revenue either (i) on or before the |
2 | | first day of April, whereupon the Department shall proceed to |
3 | | administer and enforce the tax or change in the rate as of the |
4 | | first day of July next following the filing; or (ii) on or |
5 | | before the first day of October, whereupon the Department shall |
6 | | proceed to administer and enforce the tax or change in the rate |
7 | | as of the first day of January next following the filing. |
8 | | Beginning January 1, 2014, the results of any election that |
9 | | imposes, reduces, or discontinues a tax under this Section must |
10 | | be certified by the election authority, and any ordinance that |
11 | | increases or lowers the rate or discontinues the tax must be |
12 | | certified by the county clerk and, in each case, filed with the |
13 | | Illinois Department of Revenue either (i) on or before the |
14 | | first day of May, whereupon the Department shall proceed to |
15 | | administer and enforce the tax or change in the rate as of the |
16 | | first day of July next following the filing; or (ii) on or |
17 | | before the first day of October, whereupon the Department shall |
18 | | proceed to administer and enforce the tax or change in the rate |
19 | | as of the first day of January next following the filing. |
20 | | (h) For purposes of this Section, "school facility |
21 | | purposes" means (i) the acquisition, development, |
22 | | construction, reconstruction, rehabilitation, improvement, |
23 | | financing, architectural planning, and installation of capital |
24 | | facilities consisting of buildings, structures, and durable |
25 | | equipment and for the acquisition and improvement of real |
26 | | property and interest in real property required, or expected to |
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1 | | be required, in connection with the capital facilities and (ii) |
2 | | the payment of bonds or other obligations heretofore or |
3 | | hereafter issued, including bonds or other obligations |
4 | | heretofore or hereafter issued to refund or to continue to |
5 | | refund bonds or other obligations issued, for school facility |
6 | | purposes, provided that the taxes levied to pay those bonds are |
7 | | abated by the amount of the taxes imposed under this Section |
8 | | that are used to pay those bonds. "School-facility purposes" |
9 | | also includes fire prevention, safety, energy conservation , |
10 | | including, but not limited to, energy efficient heating and |
11 | | cooling systems , accessibility, school security, |
12 | | transportation costs, technology investments, and specified |
13 | | repair purposes set forth under Section 17-2.11 of the School |
14 | | Code. |
15 | | (h-5) A county board in a county where a tax has been |
16 | | imposed under this Section pursuant to a referendum held on or |
17 | | after August 23, 2011 ( the effective date of Public Act 97-542) |
18 | | this amendatory Act of the 97th General Assembly may, by |
19 | | ordinance or resolution, submit to the voters of the county the |
20 | | question of reducing or discontinuing the tax. In the ordinance |
21 | | or resolution, the county board shall certify the question to |
22 | | the proper election authority in accordance with the Election |
23 | | Code. The election authority must submit the question in |
24 | | substantially the following form: |
25 | | Shall the school facility retailers' occupation tax |
26 | | and service occupation tax (commonly referred to as the |
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1 | | "school facility sales tax") currently imposed in (name of |
2 | | county) at a rate of (insert rate) be (reduced to (insert |
3 | | rate))(discontinued)? |
4 | | If a majority of the electors voting on the question vote in |
5 | | the affirmative, then, subject to the provisions of subsection |
6 | | (g) of this Section, the tax shall be reduced or discontinued |
7 | | as set forth in the question. |
8 | | (i) This Section does not apply to Cook County. |
9 | | (j) This Section may be cited as the County School Facility |
10 | | Occupation Tax Law.
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11 | | (Source: P.A. 98-584, eff. 8-27-13; 99-143, eff. 7-27-15; |
12 | | 99-217, eff. 7-31-15; revised 11-6-15.)
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13 | | Section 99. Effective date. This Act takes effect July 1, |
14 | | 2016.
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