Full Text of SB1664 96th General Assembly
SB1664 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 SB1664
Introduced 2/19/2009, by Sen. Matt Murphy SYNOPSIS AS INTRODUCED: |
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55 ILCS 5/5-1006 |
from Ch. 34, par. 5-1006 |
55 ILCS 5/5-1007 |
from Ch. 34, par. 5-1007 |
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Amends the Home Rule County
Retailers' Occupation Tax Law of the Counties Code and the Home Rule County
Service Occupation Tax Law of the Counties Code. Provides that the maximum tax rate that is permitted under those Laws is 0.75%, unless a higher rate is authorized by referendum. Preempts home rule powers. Effective immediately.
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FISCAL NOTE ACT MAY APPLY |
HOME RULE NOTE ACT MAY APPLY |
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
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A BILL FOR
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SB1664 |
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LRB096 10735 RLJ 20920 b |
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
| 4 |
| Section 5. The Counties Code is amended by changing | 5 |
| Sections 5-1006 and 5-1007 as follows:
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| (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
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| Sec. 5-1006. Home Rule County Retailers' Occupation Tax | 8 |
| Law. Any county that is a home rule unit may impose
a tax upon | 9 |
| all persons engaged in the business of selling tangible
| 10 |
| personal property, other than an item of tangible personal | 11 |
| property titled
or registered with an agency of this State's | 12 |
| government, at retail in the
county on the gross receipts from | 13 |
| such sales made in the course of
their business. If imposed, | 14 |
| this tax shall only
be imposed in 1/4% increments. On and after | 15 |
| September 1, 1991, this
additional tax may not be imposed on | 16 |
| the sales of food for human
consumption which is to be consumed | 17 |
| off the premises where it is sold
(other than alcoholic | 18 |
| beverages, soft drinks and food which has been
prepared for | 19 |
| immediate consumption) and prescription and nonprescription
| 20 |
| medicines, drugs, medical appliances and insulin, urine | 21 |
| testing materials,
syringes and needles used by diabetics. The | 22 |
| tax imposed by a home rule
county pursuant to this Section and | 23 |
| all civil penalties that may be
assessed as an incident thereof |
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SB1664 |
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LRB096 10735 RLJ 20920 b |
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| shall be collected and enforced by the
State Department of | 2 |
| Revenue. The certificate of registration that is
issued by the | 3 |
| Department to a retailer under the Retailers'
Occupation Tax | 4 |
| Act shall permit the retailer to engage in a
business that is | 5 |
| taxable under any ordinance or resolution
enacted pursuant to | 6 |
| this Section without registering separately with the
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| Department under such ordinance or resolution or under this | 8 |
| Section. The
Department shall have full power to administer and | 9 |
| enforce this Section; to
collect all taxes and penalties due | 10 |
| hereunder; to dispose of taxes and
penalties so collected in | 11 |
| the manner hereinafter provided; and to
determine all rights to | 12 |
| credit memoranda arising on account of the
erroneous payment of | 13 |
| tax or penalty hereunder. In the administration of,
and | 14 |
| compliance with, this Section, the Department and persons who | 15 |
| are
subject to this Section shall have the same rights, | 16 |
| remedies, privileges,
immunities, powers and duties, and be | 17 |
| subject to the same conditions,
restrictions, limitations, | 18 |
| penalties and definitions of terms, and employ
the same modes | 19 |
| of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
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| 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all | 21 |
| provisions
therein other
than the State rate of tax), 4, 5, 5a, | 22 |
| 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
5k, 5l, 6, 6a, 6b, 6c, 7, 8, | 23 |
| 9, 10, 11, 12 and 13 of the Retailers'
Occupation Tax Act and | 24 |
| Section 3-7 of the Uniform Penalty and Interest Act,
as fully | 25 |
| as if those provisions were set forth herein.
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| No tax may be imposed by a home rule county pursuant to |
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SB1664 |
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LRB096 10735 RLJ 20920 b |
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| this Section
unless the county also imposes a tax at the same | 2 |
| rate pursuant
to Section 5-1007.
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| Persons subject to any tax imposed pursuant to the | 4 |
| authority granted
in this Section may reimburse themselves for | 5 |
| their seller's tax
liability hereunder by separately stating | 6 |
| such tax as an additional
charge, which charge may be stated in | 7 |
| combination, in a single amount,
with State tax which sellers | 8 |
| are required to collect under the Use Tax
Act, pursuant to such | 9 |
| bracket schedules as the Department may prescribe.
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| Whenever the Department determines that a refund should be | 11 |
| made under
this Section to a claimant instead of issuing a | 12 |
| credit memorandum, the
Department shall notify the State | 13 |
| Comptroller, who shall cause the
order to be drawn for the | 14 |
| amount specified and to the person named
in the notification | 15 |
| from the Department. The
refund shall be paid by the State | 16 |
| Treasurer out of the home rule county
retailers' occupation tax | 17 |
| fund.
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| The Department shall forthwith pay over to the State | 19 |
| Treasurer, ex
officio, as trustee, all taxes and penalties | 20 |
| collected hereunder. On or
before the 25th day of each calendar | 21 |
| month, the Department shall
prepare and certify to the | 22 |
| Comptroller the disbursement of stated sums
of money to named | 23 |
| counties, the counties to be those from which retailers
have | 24 |
| paid taxes or penalties hereunder to the Department during the | 25 |
| second
preceding calendar month. The amount to be paid to each | 26 |
| county shall be
the amount (not including credit memoranda) |
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SB1664 |
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LRB096 10735 RLJ 20920 b |
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| collected hereunder during the
second preceding calendar month | 2 |
| by the Department plus an amount the
Department determines is | 3 |
| necessary to offset any amounts that
were erroneously paid to a | 4 |
| different taxing body, and not including an
amount equal to the | 5 |
| amount of refunds made during the second preceding
calendar | 6 |
| month by the Department on behalf of such county, and not
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| including any amount which the Department determines is | 8 |
| necessary to offset
any amounts which were payable to a | 9 |
| different taxing body but were
erroneously paid to the county. | 10 |
| Within 10 days after receipt, by the
Comptroller, of the | 11 |
| disbursement certification to the counties provided for
in this | 12 |
| Section to be given to the Comptroller by the Department, the
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| Comptroller shall cause the orders to be drawn for the | 14 |
| respective amounts
in accordance with the directions contained | 15 |
| in the certification.
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| In addition to the disbursement required by the preceding | 17 |
| paragraph,
an allocation shall be made in March of each year to | 18 |
| each county that
received more than $500,000 in disbursements | 19 |
| under the preceding
paragraph in the preceding calendar year. | 20 |
| The allocation shall be in an
amount equal to the average | 21 |
| monthly distribution made to each such county
under the | 22 |
| preceding paragraph during the preceding calendar year | 23 |
| (excluding
the 2 months of highest receipts). The distribution | 24 |
| made in March of each
year subsequent to the year in which an | 25 |
| allocation was made pursuant to
this paragraph and the | 26 |
| preceding paragraph shall be reduced by the amount
allocated |
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SB1664 |
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LRB096 10735 RLJ 20920 b |
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| and disbursed under this paragraph in the preceding calendar
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| year. The Department shall prepare and certify to the | 3 |
| Comptroller for
disbursement the allocations made in | 4 |
| accordance with this paragraph.
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| For the purpose of determining the local governmental unit | 6 |
| whose tax
is applicable, a retail sale by a producer of coal or | 7 |
| other mineral
mined in Illinois is a sale at retail at the | 8 |
| place where the coal or
other mineral mined in Illinois is | 9 |
| extracted from the earth. This
paragraph does not apply to coal | 10 |
| or other mineral when it is delivered
or shipped by the seller | 11 |
| to the purchaser at a point outside Illinois so
that the sale | 12 |
| is exempt under the United States
Constitution as a sale in | 13 |
| interstate or foreign commerce.
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| Nothing in this Section shall be construed to authorize a
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| county to impose a tax upon the privilege of engaging in any
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| business which under the Constitution of the United States may | 17 |
| not be
made the subject of taxation by this State.
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| An ordinance or resolution imposing or discontinuing a tax | 19 |
| hereunder or
effecting a change in the rate thereof shall be | 20 |
| adopted and a certified
copy thereof filed with the Department | 21 |
| on or before the first day of June,
whereupon the Department | 22 |
| shall proceed to administer and enforce this
Section as of the | 23 |
| first day of September next following such adoption
and filing. | 24 |
| Beginning January 1, 1992, an ordinance or resolution imposing
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| or discontinuing the tax hereunder or effecting a change in the | 26 |
| rate
thereof shall be adopted and a certified copy thereof |
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SB1664 |
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LRB096 10735 RLJ 20920 b |
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| filed with the
Department on or before the first day of July, | 2 |
| whereupon the Department
shall proceed to administer and | 3 |
| enforce this Section as of the first day of
October next | 4 |
| following such adoption and filing. Beginning January 1, 1993,
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| an ordinance or resolution imposing or discontinuing the tax | 6 |
| hereunder or
effecting a change in the rate thereof shall be | 7 |
| adopted and a certified
copy thereof filed with the Department | 8 |
| on or before the first day of
October, whereupon the Department | 9 |
| shall proceed to administer and enforce
this Section as of the | 10 |
| first day of January next following such adoption
and filing.
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| Beginning April 1, 1998, an ordinance or
resolution imposing or
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| discontinuing the tax hereunder or effecting a change in the | 13 |
| rate thereof shall
either (i) be adopted and a certified copy | 14 |
| thereof filed with the Department on
or
before the first day of | 15 |
| April, whereupon the Department shall proceed to
administer and | 16 |
| enforce this Section as of the first day of July next following
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| the adoption and filing; or (ii) be adopted and a certified | 18 |
| copy thereof filed
with the Department on or before the first | 19 |
| day of October, whereupon the
Department shall proceed to | 20 |
| administer and enforce this Section as of the first
day of | 21 |
| January next following the adoption and filing.
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| When certifying the amount of a monthly disbursement to a | 23 |
| county under
this Section, the Department shall increase or | 24 |
| decrease such amount by an
amount necessary to offset any | 25 |
| misallocation of previous disbursements.
The offset amount | 26 |
| shall be the amount erroneously disbursed within the
previous 6 |
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SB1664 |
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LRB096 10735 RLJ 20920 b |
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| months from the time a misallocation is discovered.
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| Except as otherwise provided in this Section, beginning on | 3 |
| the first day of the first month to occur not less than 30 | 4 |
| calendar days after the effective date of this amendatory Act | 5 |
| of the 96th General Assembly, the maximum rate of any tax | 6 |
| imposed under this Section is 0.75%. If the rate of tax exceeds | 7 |
| 0.75% on the effective date of this amendatory Act of the 96th | 8 |
| General Assembly, then the rate shall be reduced to 0.75% | 9 |
| beginning on the first day of the first month to occur not less | 10 |
| than 30 calendar days after the effective date of this | 11 |
| amendatory Act of the 96th General Assembly. The county board | 12 |
| of a county that is authorized to impose a tax under this | 13 |
| Section may increase the rate to more than 0.75%, but only | 14 |
| after the question is approved by the voters of the county at | 15 |
| an election held in accordance with the general election law. | 16 |
| The county board proposing the increase shall certify the | 17 |
| proposition to the proper
election officials who shall submit | 18 |
| the proposition to the voters at an
election in accordance with | 19 |
| the general election law. The proposition shall
be in | 20 |
| substantially the following form: | 21 |
| "Shall (county) be authorized to increase its | 22 |
| retailers' occupation tax to (percent)?" | 23 |
| Votes shall be recorded as "Yes" or "No". If a majority of | 24 |
| the votes cast on the proposition are in favor of the increase, | 25 |
| then the increase is authorized. | 26 |
| A home rule unit may not impose retailers' occupation taxes |
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SB1664 |
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LRB096 10735 RLJ 20920 b |
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| in a manner that is inconsistent with this Section. This | 2 |
| Section is a limitation of home rule powers and functions under | 3 |
| subsection (g) of Section 6 of Article VII of the Illinois | 4 |
| Constitution. | 5 |
| This Section shall be known and may be cited as the Home | 6 |
| Rule County
Retailers' Occupation Tax Law.
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| (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
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| (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
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| Sec. 5-1007. Home Rule County Service Occupation Tax Law. | 10 |
| The corporate
authorities of a home rule county may impose a | 11 |
| tax upon all persons
engaged, in such county, in the business | 12 |
| of making sales of service at the
same rate of tax imposed | 13 |
| pursuant to Section 5-1006 of the selling price of
all tangible | 14 |
| personal property transferred by such servicemen either in the
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| form of tangible personal property or in the form of real | 16 |
| estate as an
incident to a sale of service. If imposed, such | 17 |
| tax shall only be imposed
in 1/4% increments. On and after | 18 |
| September 1, 1991, this additional tax may
not be imposed on | 19 |
| the sales of food for human consumption which is to be
consumed | 20 |
| off the premises where it is sold (other than alcoholic | 21 |
| beverages,
soft drinks and food which has been prepared for | 22 |
| immediate consumption) and
prescription and nonprescription | 23 |
| medicines, drugs, medical appliances and
insulin, urine | 24 |
| testing materials, syringes and needles used by diabetics.
The | 25 |
| tax imposed by a home rule county pursuant to this Section and |
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SB1664 |
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LRB096 10735 RLJ 20920 b |
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| all
civil penalties that may be assessed as an incident thereof | 2 |
| shall be
collected and enforced by the State Department of | 3 |
| Revenue. The certificate
of registration which is issued by the | 4 |
| Department to a retailer under the
Retailers' Occupation Tax | 5 |
| Act or under the Service Occupation Tax Act shall
permit such | 6 |
| registrant to engage in a business which is taxable under any
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| ordinance or resolution enacted pursuant to this Section | 8 |
| without
registering separately with the Department under such | 9 |
| ordinance or
resolution or under this Section. The Department | 10 |
| shall have full power
to administer and enforce this Section; | 11 |
| to collect all taxes and
penalties due hereunder; to dispose of | 12 |
| taxes and penalties so collected
in the manner hereinafter | 13 |
| provided; and to determine all rights to
credit memoranda | 14 |
| arising on account of the erroneous payment of tax or
penalty | 15 |
| hereunder. In the administration of, and compliance with, this
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| Section the Department and persons who are subject to this | 17 |
| Section
shall have the same rights, remedies, privileges, | 18 |
| immunities, powers and
duties, and be subject to the same | 19 |
| conditions, restrictions,
limitations, penalties and | 20 |
| definitions of terms, and employ the same
modes of procedure, | 21 |
| as are prescribed in Sections 1a-1, 2, 2a, 3 through
3-50 (in | 22 |
| respect to all provisions therein other than the State rate of
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| tax), 4 (except that the reference to the State shall be to the | 24 |
| taxing
county), 5, 7, 8 (except that the jurisdiction to which | 25 |
| the tax shall be a
debt to the extent indicated in that Section | 26 |
| 8 shall be the taxing county),
9 (except as to the disposition |
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LRB096 10735 RLJ 20920 b |
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| of taxes and penalties collected, and
except that the returned | 2 |
| merchandise credit for this county tax may not be
taken against | 3 |
| any State tax), 10, 11, 12 (except the reference therein to
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| Section 2b of the Retailers' Occupation Tax Act), 13 (except | 5 |
| that any
reference to the State shall mean the taxing county), | 6 |
| the first paragraph
of Section 15, 16, 17, 18, 19 and 20 of the | 7 |
| Service Occupation Tax
Act and Section 3-7 of the Uniform | 8 |
| Penalty and Interest Act, as fully as if
those provisions were | 9 |
| set forth herein.
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| No tax may be imposed by a home rule county pursuant to | 11 |
| this Section
unless such county also imposes a tax at the same | 12 |
| rate pursuant to Section
5-1006.
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| Persons subject to any tax imposed pursuant to the | 14 |
| authority granted
in this Section may reimburse themselves for | 15 |
| their serviceman's tax
liability hereunder by separately | 16 |
| stating such tax as an additional
charge, which charge may be | 17 |
| stated in combination, in a single amount,
with State tax which | 18 |
| servicemen are authorized to collect under the
Service Use Tax | 19 |
| Act, pursuant to such bracket schedules as the
Department may | 20 |
| prescribe.
| 21 |
| Whenever the Department determines that a refund should be | 22 |
| made under
this Section to a claimant instead of issuing credit | 23 |
| memorandum, the
Department shall notify the State Comptroller, | 24 |
| who shall cause the
order to be drawn for the amount specified, | 25 |
| and to the person named,
in such notification from the | 26 |
| Department. Such refund shall be paid by
the State Treasurer |
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SB1664 |
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LRB096 10735 RLJ 20920 b |
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| out of the home rule county retailers' occupation tax fund.
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| The Department shall forthwith pay over to the State | 3 |
| Treasurer,
ex-officio, as trustee, all taxes and penalties | 4 |
| collected hereunder. On
or before the 25th day of each calendar | 5 |
| month, the Department shall
prepare and certify to the | 6 |
| Comptroller the disbursement of stated sums
of money to named | 7 |
| counties, the counties to be those from
which suppliers and | 8 |
| servicemen have paid taxes or penalties hereunder to
the | 9 |
| Department during the second preceding calendar month. The | 10 |
| amount
to be paid to each county shall be the amount (not | 11 |
| including credit
memoranda) collected hereunder during the | 12 |
| second preceding calendar
month by the Department, and not | 13 |
| including an amount equal to the amount
of refunds made during | 14 |
| the second preceding calendar month by the
Department on behalf | 15 |
| of such county. Within 10 days after receipt, by the
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| Comptroller, of the disbursement certification to the counties | 17 |
| provided for
in this Section to be given to the Comptroller by | 18 |
| the Department, the
Comptroller shall cause the orders to be | 19 |
| drawn for the respective amounts
in accordance with the | 20 |
| directions contained in such certification.
| 21 |
| In addition to the disbursement required by the preceding | 22 |
| paragraph, an
allocation shall be made in each year to each | 23 |
| county which received more
than $500,000 in disbursements under | 24 |
| the preceding paragraph in the
preceding calendar year. The | 25 |
| allocation shall be in an amount equal to the
average monthly | 26 |
| distribution made to each such county under the preceding
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SB1664 |
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LRB096 10735 RLJ 20920 b |
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| paragraph during the preceding calendar year (excluding the 2 | 2 |
| months of
highest receipts). The distribution made in March of | 3 |
| each year
subsequent to the year in which an allocation was | 4 |
| made pursuant to this
paragraph and the preceding paragraph | 5 |
| shall be reduced by the
amount allocated and disbursed under | 6 |
| this paragraph in the preceding
calendar year. The Department | 7 |
| shall prepare and certify to the Comptroller
for disbursement | 8 |
| the allocations made in accordance with this paragraph.
| 9 |
| Nothing in this Section shall be construed to authorize a
| 10 |
| county to impose a tax upon the privilege of engaging in any
| 11 |
| business which under the Constitution of the United States may | 12 |
| not be
made the subject of taxation by this State.
| 13 |
| An ordinance or resolution imposing or discontinuing a tax | 14 |
| hereunder or
effecting a change in the rate thereof shall be | 15 |
| adopted and a certified
copy thereof filed with the Department | 16 |
| on or before the first day of June,
whereupon the Department | 17 |
| shall proceed to administer and enforce this
Section as of the | 18 |
| first day of September next following such adoption and
filing. | 19 |
| Beginning January 1, 1992, an ordinance or resolution imposing
| 20 |
| or discontinuing the tax hereunder or effecting a change in the | 21 |
| rate
thereof shall be adopted and a certified copy thereof | 22 |
| filed with the
Department on or before the first day of July, | 23 |
| whereupon the Department
shall proceed to administer and | 24 |
| enforce this Section as of the first day of
October next | 25 |
| following such adoption and filing.
Beginning January 1, 1993, | 26 |
| an ordinance or resolution imposing or
discontinuing the tax |
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SB1664 |
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LRB096 10735 RLJ 20920 b |
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| hereunder or effecting a change in the rate thereof
shall be | 2 |
| adopted and a certified copy thereof filed with the Department | 3 |
| on
or before the first day of October, whereupon the Department | 4 |
| shall proceed
to administer and enforce this Section as of the | 5 |
| first day of January next
following such adoption and filing.
| 6 |
| Beginning April 1, 1998, an ordinance or
resolution imposing or
| 7 |
| discontinuing the tax hereunder or effecting a change in the | 8 |
| rate thereof shall
either (i) be adopted and a certified copy | 9 |
| thereof filed with the Department on
or
before the first day of | 10 |
| April, whereupon the Department shall proceed to
administer and | 11 |
| enforce this Section as of the first day of July next following
| 12 |
| the adoption and filing; or (ii) be adopted and a certified | 13 |
| copy thereof filed
with the Department on or before the first | 14 |
| day of October, whereupon the
Department shall proceed to | 15 |
| administer and enforce this Section as of the first
day of | 16 |
| January next following the adoption and filing.
| 17 |
| Except as otherwise provided in this Section, beginning on | 18 |
| the first day of the first month to occur not less than 30 | 19 |
| calendar days after the effective date of this amendatory Act | 20 |
| of the 96th General Assembly, the maximum rate of any tax | 21 |
| imposed under this Section is 0.75%. If the rate of tax exceeds | 22 |
| 0.75% on the effective date of this amendatory Act of the 96th | 23 |
| General Assembly, then the rate shall be reduced to 0.75% | 24 |
| beginning on the first day of the first month to occur not less | 25 |
| than 30 calendar days after the effective date of this | 26 |
| amendatory Act of the 96th General Assembly. The county board |
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SB1664 |
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LRB096 10735 RLJ 20920 b |
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| 1 |
| of a county that is authorized to impose a tax under this | 2 |
| Section may increase the rate to more than 0.75%, but only | 3 |
| after the question is approved by the voters of the county at | 4 |
| an election held in accordance with the general election law. | 5 |
| The county board proposing the increase shall certify the | 6 |
| proposition to the proper
election officials who shall submit | 7 |
| the proposition to the voters at an
election in accordance with | 8 |
| the general election law. The proposition shall
be in | 9 |
| substantially the following form: | 10 |
| "Shall (county) be authorized to increase its service | 11 |
| occupation tax to (percent)?" | 12 |
| Votes shall be recorded as "Yes" or "No". If a majority of | 13 |
| the votes cast on the proposition are in favor of the increase, | 14 |
| then the increase is authorized. | 15 |
| A home rule unit may not impose service occupation taxes in | 16 |
| a manner that is inconsistent with this Section. This Section | 17 |
| is a limitation of home rule powers and functions under | 18 |
| subsection (g) of Section 6 of Article VII of the Illinois | 19 |
| Constitution. | 20 |
| This Section shall be known and may be cited as the Home | 21 |
| Rule County
Service Occupation Tax Law.
| 22 |
| (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
| 23 |
| Section 99. Effective date. This Act takes effect upon | 24 |
| becoming law.
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