99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB0835

 

Introduced 2/11/2015, by Sen. William R. Haine

 

SYNOPSIS AS INTRODUCED:
 
70 ILCS 750/25

    Amends the Flood Prevention District Act. Provides that 1% (currently 2%) of the proceeds collected from flood prevention retailers' and service occupation taxes shall be deposited into the Tax Compliance and Administration Fund. Effective July 1, 2015.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Flood Prevention District Act is amended by
5changing Section 25 as follows:
 
6    (70 ILCS 750/25)
7    Sec. 25. Flood prevention retailers' and service
8occupation taxes.
9    (a) If the Board of Commissioners of a flood prevention
10district determines that an emergency situation exists
11regarding levee repair or flood prevention, and upon an
12ordinance confirming the determination adopted by the
13affirmative vote of a majority of the members of the county
14board of the county in which the district is situated, the
15county may impose a flood prevention retailers' occupation tax
16upon all persons engaged in the business of selling tangible
17personal property at retail within the territory of the
18district to provide revenue to pay the costs of providing
19emergency levee repair and flood prevention and to secure the
20payment of bonds, notes, and other evidences of indebtedness
21issued under this Act for a period not to exceed 25 years or as
22required to repay the bonds, notes, and other evidences of
23indebtedness issued under this Act. The tax rate shall be 0.25%

 

 

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1of the gross receipts from all taxable sales made in the course
2of that business. The tax imposed under this Section and all
3civil penalties that may be assessed as an incident thereof
4shall be collected and enforced by the State Department of
5Revenue. The Department shall have full power to administer and
6enforce this Section; to collect all taxes and penalties so
7collected in the manner hereinafter provided; and to determine
8all rights to credit memoranda arising on account of the
9erroneous payment of tax or penalty hereunder.
10    In the administration of and compliance with this
11subsection, the Department and persons who are subject to this
12subsection (i) have the same rights, remedies, privileges,
13immunities, powers, and duties, (ii) are subject to the same
14conditions, restrictions, limitations, penalties, and
15definitions of terms, and (iii) shall employ the same modes of
16procedure as are set forth in Sections 1 through 1o, 2 through
172-70 (in respect to all provisions contained in those Sections
18other than the State rate of tax), 2a through 2h, 3 (except as
19to the disposition of taxes and penalties collected), 4, 5, 5a,
205b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10,
2111, 11a, 12, and 13 of the Retailers' Occupation Tax Act and
22all provisions of the Uniform Penalty and Interest Act as if
23those provisions were set forth in this subsection.
24    Persons subject to any tax imposed under this Section may
25reimburse themselves for their seller's tax liability
26hereunder by separately stating the tax as an additional

 

 

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1charge, which charge may be stated in combination in a single
2amount with State taxes that sellers are required to collect
3under the Use Tax Act, under any bracket schedules the
4Department may prescribe.
5    If a tax is imposed under this subsection (a), a tax shall
6also be imposed under subsection (b) of this Section.
7    (b) If a tax has been imposed under subsection (a), a flood
8prevention service occupation tax shall also be imposed upon
9all persons engaged within the territory of the district in the
10business of making sales of service, who, as an incident to
11making the sales of service, transfer tangible personal
12property, either in the form of tangible personal property or
13in the form of real estate as an incident to a sale of service
14to provide revenue to pay the costs of providing emergency
15levee repair and flood prevention and to secure the payment of
16bonds, notes, and other evidences of indebtedness issued under
17this Act for a period not to exceed 25 years or as required to
18repay the bonds, notes, and other evidences of indebtedness.
19The tax rate shall be 0.25% of the selling price of all
20tangible personal property transferred.
21    The tax imposed under this subsection and all civil
22penalties that may be assessed as an incident thereof shall be
23collected and enforced by the State Department of Revenue. The
24Department shall have full power to administer and enforce this
25subsection; to collect all taxes and penalties due hereunder;
26to dispose of taxes and penalties collected in the manner

 

 

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1hereinafter provided; and to determine all rights to credit
2memoranda arising on account of the erroneous payment of tax or
3penalty hereunder.
4    In the administration of and compliance with this
5subsection, the Department and persons who are subject to this
6subsection shall (i) have the same rights, remedies,
7privileges, immunities, powers, and duties, (ii) be subject to
8the same conditions, restrictions, limitations, penalties, and
9definitions of terms, and (iii) employ the same modes of
10procedure as are set forth in Sections 2 (except that the
11reference to State in the definition of supplier maintaining a
12place of business in this State means the district), 2a through
132d, 3 through 3-50 (in respect to all provisions contained in
14those Sections other than the State rate of tax), 4 (except
15that the reference to the State shall be to the district), 5,
167, 8 (except that the jurisdiction to which the tax is a debt
17to the extent indicated in that Section 8 is the district), 9
18(except as to the disposition of taxes and penalties
19collected), 10, 11, 12 (except the reference therein to Section
202b of the Retailers' Occupation Tax Act), 13 (except that any
21reference to the State means the district), Section 15, 16, 17,
2218, 19, and 20 of the Service Occupation Tax Act and all
23provisions of the Uniform Penalty and Interest Act, as fully as
24if those provisions were set forth herein.
25    Persons subject to any tax imposed under the authority
26granted in this subsection may reimburse themselves for their

 

 

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1serviceman's tax liability hereunder by separately stating the
2tax as an additional charge, that charge may be stated in
3combination in a single amount with State tax that servicemen
4are authorized to collect under the Service Use Tax Act, under
5any bracket schedules the Department may prescribe.
6    (c) The taxes imposed in subsections (a) and (b) may not be
7imposed on personal property titled or registered with an
8agency of the State; food for human consumption that is to be
9consumed off the premises where it is sold (other than
10alcoholic beverages, soft drinks, and food that has been
11prepared for immediate consumption); prescription and
12non-prescription medicines, drugs, and medical appliances;
13modifications to a motor vehicle for the purpose of rendering
14it usable by a disabled person; or insulin, urine testing
15materials, and syringes and needles used by diabetics.
16    (d) Nothing in this Section shall be construed to authorize
17the district to impose a tax upon the privilege of engaging in
18any business that under the Constitution of the United States
19may not be made the subject of taxation by the State.
20    (e) The certificate of registration that is issued by the
21Department to a retailer under the Retailers' Occupation Tax
22Act or a serviceman under the Service Occupation Tax Act
23permits the retailer or serviceman to engage in a business that
24is taxable without registering separately with the Department
25under an ordinance or resolution under this Section.
26    (f) The Department shall immediately pay over to the State

 

 

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1Treasurer, ex officio, as trustee, all taxes and penalties
2collected under this Section to be deposited into the Flood
3Prevention Occupation Tax Fund, which shall be an
4unappropriated trust fund held outside the State treasury.
5    On or before the 25th day of each calendar month, the
6Department shall prepare and certify to the Comptroller the
7disbursement of stated sums of money to the counties from which
8retailers or servicemen have paid taxes or penalties to the
9Department during the second preceding calendar month. The
10amount to be paid to each county is equal to the amount (not
11including credit memoranda) collected from the county under
12this Section during the second preceding calendar month by the
13Department, (i) less 1% 2% of that amount, which shall be
14deposited into the Tax Compliance and Administration Fund and
15shall be used by the Department in administering and enforcing
16the provisions of this Section on behalf of the county, (ii)
17plus an amount that the Department determines is necessary to
18offset any amounts that were erroneously paid to a different
19taxing body; (iii) less an amount equal to the amount of
20refunds made during the second preceding calendar month by the
21Department on behalf of the county; and (iv) less any amount
22that the Department determines is necessary to offset any
23amounts that were payable to a different taxing body but were
24erroneously paid to the county. When certifying the amount of a
25monthly disbursement to a county under this Section, the
26Department shall increase or decrease the amounts by an amount

 

 

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1necessary to offset any miscalculation of previous
2disbursements within the previous 6 months from the time a
3miscalculation is discovered.
4    Within 10 days after receipt by the Comptroller from the
5Department of the disbursement certification to the counties
6provided for in this Section, the Comptroller shall cause the
7orders to be drawn for the respective amounts in accordance
8with directions contained in the certification.
9    If the Department determines that a refund should be made
10under this Section to a claimant instead of issuing a credit
11memorandum, then the Department shall notify the Comptroller,
12who shall cause the order to be drawn for the amount specified
13and to the person named in the notification from the
14Department. The refund shall be paid by the Treasurer out of
15the Flood Prevention Occupation Tax Fund.
16    (g) If a county imposes a tax under this Section, then the
17county board shall, by ordinance, discontinue the tax upon the
18payment of all indebtedness of the flood prevention district.
19The tax shall not be discontinued until all indebtedness of the
20District has been paid.
21    (h) Any ordinance imposing the tax under this Section, or
22any ordinance that discontinues the tax, must be certified by
23the county clerk and filed with the Illinois Department of
24Revenue either (i) on or before the first day of April,
25whereupon the Department shall proceed to administer and
26enforce the tax or change in the rate as of the first day of

 

 

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1July next following the filing; or (ii) on or before the first
2day of October, whereupon the Department shall proceed to
3administer and enforce the tax or change in the rate as of the
4first day of January next following the filing.
5    (j) County Flood Prevention Occupation Tax Fund. All
6proceeds received by a county from a tax distribution under
7this Section must be maintained in a special fund known as the
8[name of county] flood prevention occupation tax fund. The
9county shall, at the direction of the flood prevention
10district, use moneys in the fund to pay the costs of providing
11emergency levee repair and flood prevention and to pay bonds,
12notes, and other evidences of indebtedness issued under this
13Act.
14    (k) This Section may be cited as the Flood Prevention
15Occupation Tax Law.
16(Source: P.A. 96-939, eff. 6-24-10; 97-188, eff. 7-22-11.)
 
17    Section 99. Effective date. This Act takes effect July 1,
182015.