SB2981eng 94TH GENERAL ASSEMBLY



 


 
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1     AN ACT concerning airports and economic development.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 1. Short title. This Act may be cited as the
5 Regional Cooperation and Smart Growth in Eastern Will County
6 Act.
 
7     Section 5. Findings and purpose.
8     (1) The purpose of this Act is promoting responsible
9 growth, regional cooperation, a regional approach to land use
10 planning and design standards, revenue sharing among member
11 entities, and preserving and enhancing the quality of life
12 within the District.
13     (2) The south suburban airport to be sited in eastern Will
14 County, Illinois, will generate development in and around
15 surrounding jurisdictions. This development will have a
16 significant impact upon the region and will provide burdens as
17 well as benefits upon existing infrastructure. These burdens
18 and benefits need to be shared and apportioned equitably.
19     (3) Cooperation among the surrounding local governments
20 and agencies will support economic development and increase the
21 potential benefits of the airport while limiting the adverse
22 impacts upon the region. Sharing of certain revenues among the
23 municipal members of the District will encourage cooperation,
24 promote a regional approach to land use planning, and assist
25 each member in dealing with adverse impact upon their
26 municipality.
27     (4) It is also a purpose of this Act to ensure that future
28 land uses within the area designated as the Eastern Will County
29 Development District are compatible with the airport and its
30 operations so that future operations and growth are not unduly
31 constrained.
32     (5) This Act creates an entity, entitled the Eastern Will

 

 

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1 County Development District, to implement the purpose of this
2 Act. The District should have adequate powers to achieve its
3 goals and objectives, to be self-supporting, and to raise
4 revenue in order to assist local governments address negative
5 impacts upon infrastructure.
 
6     Section 10. Definitions. As used in this Act:
7     "Airport" or "south suburban airport" means a south
8 suburban airport, as defined by the Federal Aviation
9 Administration, located in eastern Will County, Illinois.
10     "Airport authority" means an authority created to
11 establish and maintain a south suburban airport located in
12 eastern Will County, Illinois.
13     "Airport-dependent uses" means uses that are typically
14 found on or near an airport and must, by the nature of their
15 operations, services, or products, be located on an airport or
16 have direct and immediate access to an airport or airport
17 runway. Such uses include, but are not limited to, airport
18 terminals and control towers; airport runways, taxiways, taxi
19 lanes, aircraft parking lanes, and auxiliary roads; hangars;
20 aircraft rescue and firefighting facilities; air cargo
21 storage, but not large distribution facilities; aircraft
22 maintenance, washing, and repair shops; restaurants and hotels
23 within a terminal; airline catering services; express mail and
24 package sorting facilities, aviation fuel farms and services;
25 aircraft testing facilities; airport administrative offices;
26 airport authority offices and maintenance facilities; on-site
27 parking; corporate facilities, including aircraft storage and
28 operations; and any other use deemed to be necessary for the
29 flight operation of the airport.
30     "Board" means the Board of Directors of the Eastern Will
31 County Development District.
32     "Compatible land use" means any use of lands, buildings,
33 and structures which is harmonious to the uses and activities
34 being conducted on the adjoining lands and properties and which
35 does not adversely affect or unreasonably impact any use or

 

 

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1 enjoyment of the adjoined land.
2     "County" means Will County.
3     "District" means the Eastern Will County Development
4 District.
5     "District Land Use Plan" means a written statement of land
6 use policies, goals, and objectives, together with maps,
7 graphs, charts, illustrations or any other form of written or
8 visual communication, as appropriate, that is adopted by the
9 District.
10     "Member entities" means the villages of Beecher, Crete,
11 Monee, Peotone, University Park, the County of Will, and any
12 new municipality incorporated under the laws of the State of
13 Illinois which becomes a member of the Eastern Will County
14 Development District.
15     "Member villages" means the villages of Beecher, Crete,
16 Monee, Peotone, and University Park and any new municipality
17 incorporated under the laws of the State of Illinois and
18 located entirely within the boundaries of the Eastern Will
19 County Development District.
 
20     Section 15. Creation of District.
21     (a) The Eastern Will County Development District is created
22 as a political subdivision, body politic, and municipal
23 corporation. The territorial jurisdiction of the District is
24 the rectangular geographic area within the following
25 boundaries: commencing at the southwest corner of Peotone
26 Township and the southern boundary line of Will County, east to
27 the Indiana state line, then north to a line one mile south of
28 the Northern Will-Cook County line, then west to the western
29 boundary line of Green Garden and Peotone townships, then south
30 to the southern boundary of Will County.
31     (b) The governing and administrative powers of the District
32 are vested in its Board of Directors, consisting of one member
33 appointed by the President of the Village of Beecher with the
34 consent of the Village Board, one member appointed by the
35 President of the Village of Crete with the consent of the

 

 

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1 Village Board, one member appointed by the President of the
2 Village of Monee with the consent of the Village Board, one
3 member appointed by the President of the Village of Peotone
4 with the consent of the Village Board, one member appointed by
5 the Mayor of the Village of University Park with the consent of
6 the Village Board, one member appointed by the County Executive
7 of Will County with the consent of the County Board, and one
8 member appointed by the governing body of the airport
9 authority.
10     (c) The members of the Board shall be residents of Will
11 County, Illinois, with their primary residence located within
12 the Eastern Will County Development District.
13     (d) The terms of the initial appointees shall commence 30
14 days after the effective date of this Act. The duration of the
15 term of each of the initial appointees shall be determined by
16 lot as follows: one of the appointees shall serve a term
17 expiring on the third Monday in May in the second year
18 following the effective date of this Act; 2 of the appointees
19 shall serve terms expiring on the third Monday in May in the
20 third year following the effective date of this Act; 2 of the
21 appointees shall serve terms expiring on the third Monday in
22 May in the fourth year following the effective date of this
23 Act, and 2 of the appointees shall be appointed to serve terms
24 expiring on the third Monday in May in the fifth year following
25 the effective date of this Act. All successors shall be
26 appointed by the original appointing authority and hold office
27 for a term of 4 years commencing the third Monday in May of the
28 year in which their term commences, except in case of an
29 appointment to fill a vacancy. Vacancies shall be filled for
30 the remainder of the vacated term by the original appointing
31 authority. Each member appointed to the Board shall serve until
32 his or her successor is appointed and qualified.
33 Notwithstanding the time remaining on a specific board member's
34 term, board members shall serve at the pleasure of the
35 appointing authority and a board member may be replaced by the
36 appointing entity during that board member's term of office. A

 

 

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1 new board member who is appointed to replace a current board
2 member during the current board member's term shall serve the
3 remainder of the current board member's term in office. The
4 appointing authority shall give notice of the appointment of
5 the new board member, including a certified copy of the
6 resolution appointing the new member, to the Board via
7 certified mail. The new member will commence serving at the
8 next meeting of the Board following notice of appointment.
9     (e) The Board shall annually choose one of its members to
10 serve as Chair and one of its members to serve as Secretary.
11 The Board shall appoint a Treasurer for the District who is not
12 required to be a member of the Board.
13     (f) Members of the Board shall serve without compensation
14 for their services as members but may be reimbursed for all
15 necessary expenses incurred in connection with the performance
16 of their duties as members.
17     (g) Within 30 days after appointment of the initial
18 members, the Board shall organize for the transaction of
19 business, select members to serve as Chair and Secretary, and
20 adopt bylaws. Thereafter, the Board shall meet on the call of
21 the Chair or upon written notice by 4 members of the Board. A
22 majority of the members of the Board must be present in person
23 to constitute a quorum for the transaction of business. The
24 affirmative vote of a majority of a quorum of the members shall
25 be necessary for the adoption of any ordinance or resolution.
26 All ordinances and resolutions, before taking effect, shall be
27 in writing, signed by the Chair, and attested by the Secretary.
28     (h) The Board shall appoint an Executive Director, who is
29 not a member of the Board, who shall hold office at the
30 discretion of the Board. The Executive Director shall be the
31 chief administrative and operational officer of the District,
32 direct and supervise its administrative affairs and general
33 management, perform such other duties as may be prescribed from
34 time to time by the Board, and receive compensation fixed by
35 the Board. The Executive Director shall attend all meetings of
36 the Board, but no action of the Board shall be invalid on

 

 

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1 account of the absence of the Executive Director from a
2 meeting.
3     (i) Should a new municipality incorporate within the
4 District, that new municipality shall become a member of the
5 District and shall be entitled to all rights and
6 responsibilities of membership including voting membership
7 upon the Board and revenue sharing, so long as the following
8 criteria are met:
9         (1) The new municipality is incorporated as a village
10     or city under Illinois law, and
11         (2) the entire corporate boundaries of the new
12     municipality are within the District at the time of
13     incorporation.
14     (j) The Board may set, through its bylaws, a process by
15 which other municipalities may become a member of the District.
16 A recommendation by a majority vote of the Board to add an
17 additional member entity shall be considered persuasive by the
18 General Assembly in considering an amendment to this Act to
19 include the additional municipality.
 
20     Section 20. Administration. The District has the authority
21 to establish a budget, raise revenue for administration, and
22 retain staff, agents, and consultants to carry out planning,
23 development review, and other duties and exercise all other
24 powers incidental, necessary, convenient, or desirable to
25 carry out and effectuate the powers granted in this Act.
26 Without limitation, the District may enter into
27 intergovernmental agreements under the Intergovernmental
28 Cooperation Act, engage the services of the Illinois Finance
29 Authority, sue and be sued, have and use a corporate seal,
30 designate a fiscal year, and enter into contracts and leases.
 
31     Section 25. Planning. The District shall adopt an overall
32 land use plan that identifies likely key development areas
33 within the airport environs and lays the foundation for design
34 and development standards and development review in that area.

 

 

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1 The District Land Use Plan is to be prepared by staff and
2 consultants. Key elements shall include open space,
3 transportation needs, compatibility of uses, and noise
4 mitigation. Preparation of the land use plan shall include an
5 opportunity for input from the governing body of each township
6 with land within the District, and those Illinois cities and
7 villages having a statutory planning area within the District
8 boundaries. Prior to final approval of the District Land Use
9 Plan by the Board, the Board shall hold a public hearing,
10 pursuant to public notice of not less than 5 days and not more
11 than 20 days, for the purpose of providing an opportunity for
12 input by these townships and municipalities and the public.
13     The land use plan shall be transmitted to the governing
14 bodies of the member villages and Will County for review and
15 consideration. The land use plan shall not become effective
16 until the governing bodies of Will County and of each member
17 village of the District has approved the plan. However,
18 approval of the District land use plan shall not be
19 unreasonably withheld. Should any member village fail to
20 approve or reject the land use plan for a period greater than
21 90 days after receipt of the plan from the District, that
22 failure to act shall be deemed to be an approval of the land
23 use plan. In the event that a member village shall reject the
24 land use plan, that member village shall provide written notice
25 of the rejection of the plan to the District. Said rejection
26 notice shall include the specific reasons for said rejection of
27 the land use plan. The District and its member villages and
28 Will County shall make good faith efforts to come to an
29 agreement regarding the land use plan. It shall be public
30 policy that a District Land Use Plan be approved by the members
31 of the District in order that the District may effectively
32 perform its statutory mission.
33     The land use plan shall cover all territory within the
34 District, including land uses within the member villages,
35 focusing particularly on peripheral properties that may be
36 directly affected by airport-related development.

 

 

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1     The land use plan shall be reviewed and revised every 5
2 years, or at such times as may be deemed necessary by a
3 majority vote of the Board, to reflect recent developments,
4 annexations, and changing land use needs within the region.
 
5     Section 30. Design and development standards and
6 development review. After adopting a land use plan, the
7 District shall promulgate design and development standards.
8 The design and development standards shall establish baseline
9 requirements within the District in order to ensure that
10 baseline design and development standards are consistent
11 throughout the District. The District shall work with each
12 member entity to encourage that the member villages and county
13 shall adopt said baseline design and development standards.
14     The District shall review the design and development
15 standards of each member village and of Will County and the
16 District shall certify that said village or county standards
17 conform to the District's baseline design and development
18 standards. Notwithstanding adoption by the District of design
19 and development standards, any member village or County may
20 adopt land use regulations that are more stringent than those
21 of the District.
22     Development applications shall be handled by the
23 jurisdiction within which the project is located. The host
24 jurisdiction shall review the application, applying the
25 District's design and development standards, in addition to any
26 other normal development requirements. The host jurisdiction
27 shall forward the development application to the District for
28 comment and certification. The District shall review the
29 application and make specific findings regarding the impact of
30 the project and determinations regarding mitigation of
31 negative impact.
32     The certification process shall be determined by the Board
33 and shall require a finding by a majority of the Board that a
34 proposed development conforms to the District Land Use Plan,
35 conforms to the District's design and development standards,

 

 

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1 and has adequately addressed the need to mitigate negative
2 impact upon regional infrastructure in order for the District
3 to make a positive finding. If the District finds that the
4 proposed development satisfies the preceding criteria, the
5 District shall notify the affected municipality that the
6 District has reached a positive finding regarding the proposed
7 development. The District shall issue a Certificate of
8 Conformance to the host jurisdiction as evidence of the
9 positive finding.
10     If any member entity shall object to a proposed
11 development, that development shall be subject to a review
12 process to be determined by the Board that shall require a
13 two-thirds majority of the Board for a positive finding and
14 issuance of a Certificate of Conformance.
15     If the District makes a finding that a proposed development
16 fails to conform to the District Land Use Plan, fails to
17 satisfy the applicable design and development standards, or
18 fails to adequately address the need to mitigate negative
19 impact upon regional infrastructure, the District shall notify
20 the affected municipality of the District's negative finding. A
21 negative finding by the District shall trigger a requirement
22 that the affected host jurisdiction reach an extraordinary
23 majority within their approval process in order to approve the
24 proposed development. If a municipality should approve a
25 development by an extraordinary majority and that development
26 has failed to cure the defects that resulted in a negative
27 finding by the District, then the proposed development shall be
28 deemed a non-conforming development.
29     The District shall act in a timely manner in reviewing
30 development proposals. After this timely review, the District
31 shall convey, in writing, to the host jurisdiction the
32 District's certification of a positive finding or a negative
33 finding regarding the proposed development. A negative finding
34 shall include the reasons for the negative finding and
35 suggestions for ways to cure the negative aspects of the
36 proposed development.

 

 

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1     The District's authority is subject to all pre-annexation
2 or other governmental agreements of the member villages and
3 county in existence on the effective date of this Act.
4     If land in the District is annexed into a member village,
5 the District shall continue to have development review power
6 over that property as set forth in this Section and the design
7 and development standards shall continue to apply. It shall be
8 the policy of the District that when development is proposed in
9 any unincorporated area, the District shall encourage, and
10 assist in, annexation to an appropriate municipality.
11     Notwithstanding any other provision of this Section,
12 undeveloped land within each member village on the effective
13 date of this Act that has not received development approval or
14 has not been the subject of a pre-existing annexation or
15 development agreement must comply with uniform airport noise
16 and safety and hazard mitigation land use regulations
17 promulgated by the District, the airport authority, or other
18 governmental agencies.
19     Building code and zoning enforcement authority shall be
20 exercised by the village in which the property is located and
21 shall be exercised by the County if the property is not located
22 in a village.
23     The review and certification authority of the District
24 shall be limited to non-residential development within the
25 District, except the District may require notice of all
26 proposed development for the purpose of determining
27 consistency with the District Land Use Plan. Airport-dependent
28 uses on land owned by the airport authority shall be exempt
29 from the District's review and certification process.
 
30     Section 35. Land acquisition. The District may acquire by
31 purchase or gift and hold or dispose of real or personal
32 property or rights or interests therein. The District may
33 acquire property from willing sellers, but the District may not
34 exercise the power of eminent domain. Prior to the acquisition
35 of real property, the District shall provide 30 days' notice to

 

 

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1 the airport authority in order that the airport authority may
2 make a determination that the land acquisition will not hinder
3 any airport uses or future expansion.
 
4     Section 40. Airport noise monitoring, mitigation, and
5 enforcement programs. Appropriate notations, in a form to be
6 determined by the District, shall be required on all property
7 deeds of land within the District that are within delineated
8 noise impacted areas as defined by the airport authority.
9     The District may act as a representative of the member
10 villages in discussing noise issues and cooperative mitigation
11 measures with the airport authority and the Federal Aviation
12 Administration.
 
13     Section 45. Economic development and marketing. The
14 District may market and promote economic development
15 activities in cooperation with the County, member villages, and
16 other agencies. The District may help fund economic development
17 activities by the County, villages, townships, and other
18 entities. The District may seek grants, loans, or other
19 financing opportunities to promote its planning and economic
20 development mission or for operations.
 
21     Section 50. Infrastructure and service mitigation fees.
22 The District may impose infrastructure and service mitigation
23 fees on new industrial and commercial development within the
24 District to pay for infrastructure and services necessitated by
25 that development. New industrial and commercial development
26 shall be industrial and commercial property that is developed,
27 as evidenced by an application for building permit, within the
28 District, after the effective date of this Act.
 
29     Section 55. Property taxes. The District may levy ad
30 valorem property taxes upon all new industrial and commercial
31 taxable property in the District. New industrial and commercial
32 property shall be property that is developed, as evidenced by

 

 

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1 an application for building permit within the District, after
2 the effective date of this Act. Proceeds shall be used for the
3 administrative and operating expenses of the District, to carry
4 out planning and development review functions, and to fund
5 infrastructure improvements within the District.
 
6     Section 60. Use and occupation taxes.
7     (a) The District shall not have the authority to levy taxes
8 for any purpose, except as provided in subsections (b), (c),
9 (d), (e), and (f).
10     (b) By ordinance the District shall, as soon as practicable
11 from the effective date of this Act, impose an occupation tax
12 upon all persons engaged within the corporate limits of the
13 District in the business of renting, leasing, or letting rooms
14 in a hotel, as defined in the Hotel Operators' Occupation Tax
15 Act, at a rate of 2.5% of the gross rental receipts from the
16 renting, leasing, or letting of rooms within the District,
17 excluding, however, from gross rental receipts the proceeds of
18 renting, leasing, or letting to permanent residents of a hotel
19 as defined in that Act. Gross rental receipts shall not include
20 charges that are added on account of the liability arising from
21 any tax imposed by the State or any governmental agency on the
22 occupation of renting, leasing or letting rooms in a hotel.
23     The tax imposed by the District under this subsection and
24 all civil penalties that may be assessed as an incident to that
25 tax shall be collected and enforced by the Illinois Department
26 of Revenue. The certificate of registration that is issued by
27 the Department to a lessor under the Hotel Operators'
28 Occupation Tax Act shall permit that registrant to engage in a
29 business that is taxable under any ordinance enacted under this
30 subsection without registering separately with the Department
31 under that ordinance or under this subsection. The Department
32 shall have full power to administer and enforce this
33 subsection, to collect all taxes and penalties due under this
34 subsection, to dispose of taxes and penalties so collected in
35 the manner provided in this subsection, and to determine all

 

 

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1 rights to memoranda arising on account of the erroneous payment
2 of tax or penalty under this subsection. In the administration
3 of, and compliance with, this subsection, the Department and
4 persons who are subject to this subsection shall have the same
5 rights, remedies, privileges, powers, and duties, shall be
6 subject to the same conditions, restrictions, limitations,
7 penalties, and definitions of terms, and shall employ the same
8 modes of procedure as are prescribed in the Hotel Operators'
9 Occupation Tax Act (except where the Act is inconsistent with
10 this subsection), as fully as the Act were set out in this
11 subsection.
12     Whenever the Department determines that a refund should be
13 made under this subsection to a claimant instead of issuing a
14 credit memorandum, the Department shall notify the State
15 Comptroller, who shall cause a warrant to be drawn for the
16 amount specified and to the person named in the notification
17 from the Department. The refund shall be paid by the State
18 Treasurer.
19     Persons subject to any tax under the authority imposed in
20 this subsection may reimburse themselves for their tax
21 liability for that tax by separately stating that tax as an
22 additional charge, which charge may be stated in combination,
23 in a single amount, with State taxes imposed under the Hotel
24 Operators' Occupation Tax Act and the municipal tax imposed
25 under Section 8-3-13 of the Illinois Municipal Code.
26     The person filing the return shall, at the time of filing
27 the return, pay to the Department the amount of the tax, less a
28 discount of 2.1% or $25 per calendar year, whichever is
29 greater, which is allowed to reimburse the operator for the
30 expenses incurred in keeping records, preparing and filing
31 returns, remitting the tax, and supplying data to the
32 Department on request.
33     The Department shall forthwith pay over to the State
34 Treasurer, ex officio, as trustee for the District, all taxes
35 and penalties collected under this subsection for deposit into
36 a trust fund held outside the State treasury. On or before the

 

 

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1 25th day of each calendar month, the Department shall certify
2 to the Comptroller the amounts to be paid, which shall be the
3 amounts (not including credit memoranda) collected under this
4 subsection during the second preceding calendar month by the
5 Department, less any amounts determined by the Department to be
6 necessary for payment of refunds.
7     A certified copy of any ordinance imposing or discontinuing
8 a tax under this subsection or effecting a change in the rate
9 of that tax shall be filed with the Illinois Department of
10 Revenue, whereupon the Department shall proceed to administer
11 and enforce this subsection on behalf of the District as of the
12 first day of the third calendar month following the date of
13 filing.
14     (c) By ordinance the Authority shall, as soon as
15 practicable after the effective date of this Act, impose a tax
16 upon all persons engaged in the business of renting automobiles
17 in the District at the rate of 6% of the gross receipts from
18 that business, except that no tax shall be imposed on the
19 business of renting automobiles for use as taxicabs or in
20 livery service. The tax imposed under this subsection and all
21 civil penalties that may be assessed as an incident to that tax
22 shall be collected and enforced by the Illinois Department of
23 Revenue. The certificate of registration issued by the
24 Department to a retailer under the Retailers' Occupation Tax
25 Act or under the Automobile Renting Occupation and Use Tax Act
26 shall permit that person to engage in a business that is
27 taxable under any ordinance enacted under this subsection
28 without registering separately with the Department under that
29 ordinance or under this subsection. The Department shall have
30 full power to administer and enforce this subsection, to
31 collect all taxes and penalties due under this subsection, to
32 dispose of taxes and penalties so collected in the manner
33 provided in this subsection, and to determine all rights to
34 credit memoranda arising on account of the erroneous payment of
35 tax or penalty under this subsection. In the administration of
36 and compliance with this subsection, the Department and persons

 

 

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1 who are subject to this subsection shall have the same rights,
2 remedies, privileges, immunities, powers, and duties, be
3 subject to the same conditions, restrictions, limitations,
4 penalties, and definitions of terms, and employ the same modes
5 of procedure as are as the Department may prescribe.
6     Whenever the Department determines that a refund should be
7 made under this subsection to a claimant instead of issuing a
8 credit memorandum, the Department shall notify the State
9 prescribed in Sections 2 and 3 (in respect to all provisions of
10 those Sections other than the State rate of tax; and in respect
11 to the provisions of the Retailers' Occupation Tax Act referred
12 to in those Sections, except as to the disposition of taxes and
13 penalties collected, except for the provision allowing
14 retailers a deduction from the tax to cover certain costs, and
15 except that credit memoranda issued under this subsection may
16 not be used to discharge any State tax liability) of the
17 Automobile Renting Occupation and Use Tax Act, as fully as if
18 provisions contained in those Sections of that Act were set
19 forth in this subsection.
20     Persons subject to any tax imposed under the authority
21 granted in this subsection may reimburse themselves for their
22 tax liability under this subsection by separately stating that
23 tax as an additional charge, which charge may be stated in
24 combination, in a single amount, with State tax that sellers
25 are required to collect under the Automobile Renting Occupation
26 and Use Tax Act, pursuant to bracket schedules as the
27 Department may prescribe. Whenever the Department determines
28 that a refund should be made under this Section to a claimant
29 instead of issuing a credit memorandum, the Department shall
30 notify the State Comptroller, who shall cause a warrant to be
31 drawn for the amount specified and to the person named in the
32 notification from the Department. The refund shall be paid by
33 the State Treasurer.
34     The Department shall forthwith pay over to the State
35 Treasurer, ex officio, as trustee, all taxes and penalties
36 collected under this subsection for deposit into a trust fund

 

 

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1 held outside the State treasury. On or before the 25th day of
2 each calendar month, the Department shall certify to the
3 Comptroller the amounts to be paid under this Section (not
4 including credit memoranda) or collected under this subsection
5 during the second preceding calendar month by the Department,
6 less any amount determined by the Department to be necessary
7 for payment of refunds. Within 10 days after receipt by the
8 Comptroller of the Department's certification, the Comptroller
9 shall cause the orders to be drawn for such amounts, and the
10 Treasurer shall administer those amounts.
11     Nothing in this subsection authorizes the Authority to
12 impose a tax upon the privilege of engaging in any business
13 that under the Constitution of the United States may not be
14 made the subject of taxation by this State.
15     A certified copy of any ordinance imposing or discontinuing
16 a tax under this subsection or effecting a change in the rate
17 of that tax shall be filed with the Illinois Department of
18 Revenue, whereupon the Department shall proceed to administer
19 and enforce this subsection on behalf of the Authority as of
20 the first day of the third calendar month following the date of
21 filing.
22     (d) By ordinance the District shall, as soon as practicable
23 after the effective date of this Act, impose a tax upon the
24 privilege of using in the District an automobile that is rented
25 from a rentor outside Illinois and is titled or registered with
26 an agency of this State's government at a rate of 6% of the
27 rental price of that automobile, except that no tax shall be
28 imposed on the privilege of using automobiles rented for use as
29 taxicabs or in livery service. The tax shall be collected from
30 persons whose Illinois address for titling or registration
31 purposes is given as being in the District. The tax shall be
32 collected by the Department of Revenue for the District. The
33 tax must be paid to the State or an exemption determination
34 must be obtained from the Department of Revenue before the
35 title or certificate of registration for the property may be
36 issued. The tax or proof of exemption may be transmitted to the

 

 

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1 Department by way of the State agency with which or State
2 officer with whom the tangible personal property must be titled
3 or registered if the Department and that agency or State
4 officer determine that this procedure will expedite the
5 processing of applications for title or registration.
6     The Department shall have full power to administer and
7 enforce this subsection, to collect all taxes, penalties, and
8 interest due under this subsection, to dispose of taxes,
9 penalties, and interest so collected in the manner provided in
10 this subsection, and to determine all rights to credit
11 memoranda or refunds arising on account of the erroneous
12 payment of tax, penalty, or interest under this subsection. In
13 the administration of and compliance with this subsection, the
14 Department and persons who are subject to this subsection shall
15 have the same rights, remedies, privileges, immunities,
16 powers, and duties, be subject to the same conditions,
17 restrictions, limitations, penalties, and definitions of
18 terms, and employ the same modes of procedure as are prescribed
19 in Sections 2 and 4 (except provisions pertaining to the State
20 rate of tax; and in respect to the provisions of the Use Tax
21 Act referred to in that Section, except provisions concerning
22 collection or refunding of the tax by retailers, except the
23 provisions of Section 19 pertaining to claims by retailers,
24 except the last paragraph concerning refunds, and except that
25 credit memoranda issued under this subsection may not be used
26 to discharge any State tax liability) of the Automobile Renting
27 Occupation and Use Tax Act, as fully as if provisions contained
28 in those Sections of that Act were set forth in this
29 subsection.
30     Whenever the Department determines that a refund should be
31 made under this subsection to a claimant instead of issuing a
32 credit memorandum, the Department shall notify the State
33 Comptroller, who shall cause a warrant to be drawn for the
34 amount specified and to the person named in the notification
35 from the Department. The refund shall be paid by the State
36 Treasurer.

 

 

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1     The Department shall forthwith pay over to the State
2 Treasurer, ex officio, as trustee, all taxes, penalties, and
3 interest collected under this subsection for deposit into a
4 trust fund held outside the State treasury. On or before the
5 25th day of each calendar month, the Department shall certify
6 to the State Comptroller the amounts to be paid, which shall be
7 the amounts (not including credit memoranda) collected under
8 this subsection during the second preceding calendar month by
9 the Department, less any amounts determined by the Department
10 to be necessary for payment of refunds. Within 10 days after
11 receipt by the State Comptroller of the Department's
12 certification, the Comptroller shall cause the orders to be
13 drawn for such amounts, and the Treasurer shall administer
14 those amounts.
15     A certified copy of any ordinance imposing or discontinuing
16 a tax or effecting a change in the rate of that tax shall be
17 filed with the Illinois Department of Revenue, whereupon the
18 Department shall proceed to administer and enforce this
19 subsection on behalf of the District as of the first day of the
20 third calendar month following the date of filing.
21     (f) By ordinance the District shall, as soon as practicable
22 after the effective date of this Act, impose an occupation tax
23 on all persons, other than a governmental agency, engaged in
24 the business of providing ground transportation for hire to
25 passengers in the District at a rate of (i) $2 per taxi or
26 livery vehicle departure with passengers for hire from
27 commercial service airports in the District, (ii) for each
28 departure with passengers for hire from a commercial service
29 airport in the District in a bus or van operated by a person
30 other than a person described in item (iii): $9 per bus or van
31 with a capacity of one to 12 passengers, $18 per bus or van
32 with a capacity of 13 to 24 passengers, and $27 per bus or van
33 with a capacity of over 24 passengers, and (iii) for each
34 departure with passengers for hire from a commercial service
35 airport in the District in a bus or van operated by a person
36 regulated by the Interstate Commerce Commission or Illinois

 

 

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1 Commerce Commission, operating scheduled service from the
2 airport, and charging fares on a per passenger basis: $1 per
3 passenger for hire in each bus or van. The term "commercial
4 service airport" means the south suburban airport as defined by
5 this Act.
6     In the ordinance imposing the tax, the Authority may
7 provide for the administration and enforcement of the tax and
8 the collection of the tax from persons subject to the tax as
9 the District determines to be necessary or practicable for the
10 effective administration of the tax. The District may enter
11 into agreements as it deems appropriate with any governmental
12 agency providing for that agency to act as the District's agent
13 to collect the tax.
14     In the ordinance imposing the tax, the District may
15 designate a method or methods for persons subject to the tax to
16 reimburse themselves for the tax liability arising under the
17 ordinance (i) by separately stating the full amount of the tax
18 liability as an additional charge to passengers departing the
19 airports, (ii) by separately stating one-half of the tax
20 liability as an additional charge to both passengers departing
21 from and to passengers arriving at the airports, or (iii) by
22 some other method determined by the District.
23     All taxes, penalties, and interest collected under any
24 ordinance adopted under this subsection, less any amounts
25 determined to be necessary for the payment of refunds, shall be
26 paid forthwith to the State Treasurer, ex officio, for
27 disbursement.
 
28     Section 65. Initial funding. The member entities and the
29 State of Illinois shall provide funding for the first 3 years
30 of the District's expenses pursuant to the following formula:
31         (i) Each member entity shall contribute to the District
32     a sum equal to $2 per person for each resident of that
33     member entity, as determined by the most recent census,
34     residing within the District per annum for 3 consecutive
35     years. The total of this annual contribution shall be

 

 

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1     deemed the Local Contribution; and
2         (ii) The State of Illinois shall provide matching funds
3     to the District in an amount equal to the Local
4     Contribution for 3 consecutive years.
 
5     Section 70. Special assessments. The District may levy,
6 assess, and collect special assessments, except with respect to
7 property that is not subject to special assessments, on new
8 industrial and commercial development. New industrial and
9 commercial development shall be industrial and commercial
10 property that is developed, as evidenced by an application for
11 building permit, within the District, after the effective date
12 of this Act.
 
13     Section 75. Revenue Bonds. The District may borrow money
14 from the United States Government or an agency thereof, or from
15 any other public or private source, for the purposes of the
16 District and, as evidence thereof, may issue its revenue bonds
17 payable solely from the revenue from the operation of the
18 District and any other funds available to the District for such
19 purposes. These bonds may be issued with maturities not
20 exceeding 40 years from the date of the bonds, and in such
21 amounts as may be necessary to provide sufficient funds,
22 together with interest, for the purposes of the District. These
23 bonds shall bear interest at a rate not more than the maximum
24 rate authorized by the Bond Authorization Act, payable
25 semi-annually, may be made registerable as to principal, and
26 may be made payable and callable as provided on any interest
27 payment date at a price of par and accrued interest under such
28 terms and conditions as may be fixed by the ordinance
29 authorizing the issuance of the bonds. Bonds issued under this
30 Section are negotiable instruments. They shall be executed by
31 the Chair and members of the Board, attested by the Secretary,
32 and shall be sealed with the corporate seal of the District. In
33 case any Board member or officer whose signature appears on the
34 bonds or coupons ceases to hold that office before the bonds

 

 

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1 are delivered, such officer's signature shall nevertheless be
2 valid and sufficient for all purposes as though the officer had
3 remained in office until the bonds were delivered. The bonds
4 shall be sold in such manner and upon such terms as the Board
5 shall determine, except that the selling price shall be such
6 that the interest cost to the District of the proceeds of the
7 bonds shall not exceed the maximum rate authorized by the Bond
8 Authorization Act, payable semi-annually, computed to maturity
9 according to the standard table of bond values. The ordinance
10 shall fix the amount of the revenue bonds proposed to be
11 issued, the maturity or maturities, the interest rate, which
12 shall not exceed the maximum rate authorized by the Bond
13 Authorization Act, and all the details in connection with the
14 bonds. The ordinance may contain such covenants and
15 restrictions upon the issuance of additional revenue bonds
16 thereafter, which shall share equally in the revenue of the
17 District, as may be deemed necessary or advisable for the
18 assurance of the payment of the bonds first issued. The
19 District may also provide in the ordinance authorizing the
20 issuance of bonds under this Section that the bonds, or such
21 ones thereof may be specified, shall, to the extent and manner
22 prescribed, be subordinated and be junior in standing, with
23 respect to the payment of principal and interest and the
24 security thereof, to such other bonds as are designated in the
25 ordinance. The ordinance shall pledge the revenue derived from
26 the operations of the District for the cost of paying the cost
27 and operation of the District, and, as applicable, providing
28 adequate depreciation funds, and paying the principal of and
29 interest on the bonds of the District issued under this
30 Section.
 
31     Section 80. Fees and charges. The District may levy,
32 assess, and collect fees and charges for services as it deems
33 appropriate.
 
34     Section 85. Loans, grants, voluntary contributions and

 

 

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1 appropriations. The District may accept loans, grants,
2 voluntary contributions, or appropriations of money or
3 materials or property of any kind from a federal or State
4 agency or officer, a unit of local government, or a private
5 person or entity.
 
6     Section 90. Revenue sharing. The District, member
7 villages, and county may share tax revenues subject to the
8 following restrictions:
9         (i) District-wide use and occupation taxes are not
10     subject to revenue sharing.
11         (ii) Funds generated by the existing rates of the
12     member villages and the county are not subject to revenue
13     sharing; and
14         (iii) Taxes imposed by other entities are not subject
15     to revenue sharing.
16 The member entities shall share certain revenue generated
17 within the District for new commercial and industrial
18 development occurring after the effective date of this
19 legislation. The amount of revenue subject to revenue sharing
20 is as follows: (i) one-half of the corporate ad valorem
21 property tax on new commercial and industrial development
22 within the District shall be shared among the member entities,
23 up to a limit of the first 0.2500 of the member entity's
24 corporate levy, and (ii) one-half of any new local sales tax
25 shall be shared among the member entities. The first half of
26 the revenue from new ad valorem property taxes on new
27 commercial and industrial development shall be retained by the
28 host community and the second half of this revenue shall be
29 distributed in one-sixth shares to the 6 member entities. The
30 first half of any new sales taxes within the District shall be
31 retained by the host community and the second half of this
32 revenue shall be distributed in one-sixth shares to the 6
33 member entities. Should any additional municipalities become
34 member villages, the distribution formula shall be amended to
35 provide for equal shares of shared revenue for each member

 

 

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1 entity.
2     Existing and future ad valorem property tax proceeds for
3 all taxing bodies, except the member entities, shall remain
4 with the entity that assessed them.
5     Should a member entity offer an incentive for development
6 in the form of a tax rebate, the rebate shall not include funds
7 that are subject to revenue sharing unless the entity offering
8 the incentive reimburses the other member entity entitled to
9 receive revenue sharing for lost revenue, or the entitled
10 members waive their right to reimbursement for lost revenue as
11 evidenced by an intergovernmental agreement. Establishment of
12 any new or expanded Tax Increment Financing districts within
13 the District shall be subject to the revenue sharing
14 requirements and restrictions of this Act.
 
15     Section 95. Infrastructure improvements. The District does
16 not have independent authority to directly undertake
17 infrastructure improvements, such as roads and water and sewer
18 lines. However, the District may pass through funds it collects
19 under this Act to other entities, such as the Illinois
20 Department of Transportation, the county, townships, or
21 villages. These funds shall be used to undertake infrastructure
22 improvements, off-airport, according to a capital improvement
23 plan approved by the Board or upon a finding of a majority of
24 the Board that such improvements promote economic development
25 within the District, provide community services or amenities,
26 or help advance or realize other purposes for which the
27 District was created.
 
28     Section 100. Annexation. Property within the District that
29 is unincorporated on the effective date of this Act may be
30 annexed by a village in accordance with State law; however, the
31 District shall continue to have review and approval authority
32 with respect to that property under Section 30.
 
33     Section 900. The Illinois Finance Authority Act is amended

 

 

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1 by changing Section 820-50 as follows:
 
2     (20 ILCS 3501/820-50)
3     Sec. 820-50. Pledge of Funds by Units of Local Government.
4     (a) Pledge of Funds. Any unit of local government which
5 receives funds from the Department of Revenue, including
6 without limitation funds received pursuant to Sections 8-11-1,
7 8-11-1.4, 8-11-5 or 8-11-6 of the Illinois Municipal Code, the
8 Home Rule County Retailers' Occupation Tax Act, the Home Rule
9 County Service Occupation Tax Act, Sections 25.05-2, 25.05-3 or
10 25.05-10 of "An Act to revise the law in relation to counties",
11 Section 5.01 of the Local Mass Transit District Act, Section
12 4.03 of the Regional Transportation Authority Act, Sections 2
13 or 12 of the State Revenue Sharing Act, Section 60 of the
14 Regional Cooperation and Smart Growth in Eastern Will County
15 Act, or from the Department of Transportation pursuant to
16 Section 8 of the Motor Fuel Tax Law, or from the State
17 Superintendent of Education (directly or indirectly through
18 regional superintendents of schools) pursuant to Article 18 of
19 the School Code, or any unit of government which receives other
20 funds which are at any time in the custody of the State
21 Treasurer, the State Comptroller, the Department of Revenue,
22 the Department of Transportation or the State Superintendent of
23 Education may by appropriate proceedings, pledge to the
24 Authority or any entity acting on behalf of the Authority
25 (including, without limitation, any trustee), any or all of
26 such receipts to the extent that such receipts are necessary to
27 provide revenues to pay the principal of, premium, if any, and
28 interest on, and other fees related to, or to secure, any of
29 the local government securities of such unit of local
30 government which have been sold or delivered to the Authority
31 or its designee or to pay lease rental payments to be made by
32 such unit of local government to the extent that such lease
33 rental payments secure the payment of the principal of,
34 premium, if any, and interest on, and other fees related to,
35 any local government securities which have been sold or

 

 

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1 delivered to the Authority or its designee. Any pledge of such
2 receipts (or any portion thereof) shall constitute a first and
3 prior lien thereon and shall be binding from the time the
4 pledge is made.
5     (b) Direct Payment of Pledged Receipts. Any such unit of
6 local government may, by such proceedings, direct that all or
7 any of such pledged receipts payable to such unit of local
8 government be paid directly to the Authority or such other
9 entity (including, without limitation, any trustee) for the
10 purpose of paying the principal of, premium, if any, and
11 interest on, and fees relating to, such local government
12 securities or for the purpose of paying such lease rental
13 payments to the extent necessary to pay the principal of,
14 premium, if any, and interest on, and other fees related to,
15 such local government securities secured by such lease rental
16 payments. Upon receipt of a certified copy of such proceedings
17 by the State Treasurer, the State Comptroller, the Department
18 of Revenue, the Department of Transportation or the State
19 Superintendent of Education, as the case may be, such
20 Department or State Superintendent shall direct the State
21 Comptroller and State Treasurer to pay to, or on behalf of, the
22 Authority or such other entity (including, without limitation,
23 any trustee) all or such portion of the pledged receipts from
24 the Department of Revenue, or the Department of Transportation
25 or the State Superintendent of Education (directly or
26 indirectly through regional superintendents of schools), as
27 the case may be, sufficient to pay the principal of and
28 premium, if any, and interest on, and other fees related to,
29 the local governmental securities for which the pledge was made
30 or to pay such lease rental payments securing such local
31 government securities for which the pledge was made. The
32 proceedings shall constitute authorization for such a
33 directive to the State Comptroller to cause orders to be drawn
34 and to the State Treasurer to pay in accordance with such
35 directive. To the extent that the Authority or its designee
36 notifies the Department of Revenue, the Department of

 

 

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1 Transportation or the State Superintendent of Education, as the
2 case may be, that the unit of local government has previously
3 paid to the Authority or its designee the amount of any
4 principal, premium, interest and fees payable from such pledged
5 receipts, the State Comptroller shall cause orders to be drawn
6 and the State Treasurer shall pay such pledged receipts to the
7 unit of local government as if they were not pledged receipts.
8 To the extent that such receipts are pledged and paid to the
9 Authority or such other entity, any taxes which have been
10 levied or fees or charges assessed pursuant to law on account
11 of the issuance of such local government securities shall be
12 paid to the unit of local government and may be used for the
13 purposes for which the pledged receipts would have been used.
14     (c) Payment of Pledged Receipts upon Default. Any such unit
15 of local government may, by such proceedings, direct that such
16 pledged receipts payable to such unit of local government be
17 paid to the Authority or such other entity (including, without
18 limitation, any trustee) upon a default in the payment of any
19 principal of, premium, if any, or interest on, or fees relating
20 to, any of the local government securities of such unit of
21 local government which have been sold or delivered to the
22 Authority or its designee or any of the local government
23 securities which have been sold or delivered to the Authority
24 or its designee and which are secured by such lease rental
25 payments. If such local governmental security is in default as
26 to the payment of principal thereof, premium, if any, or
27 interest thereon, or fees relating thereto, to the extent that
28 the State Treasurer, the State Comptroller, the Department of
29 Revenue, the Department of Transportation or the State
30 Superintendent of Education (directly or indirectly through
31 regional superintendents of schools) shall be the custodian at
32 any time of any other available funds or moneys pledged to the
33 payment of such local government securities or such lease
34 rental payments securing such local government securities
35 pursuant to this Section and due or payable to such a unit of
36 local government at any time subsequent to written notice to

 

 

SB2981 Engrossed - 27 - LRB094 19189 DRH 54726 b

1 the State Comptroller and State Treasurer from the Authority or
2 any entity acting on behalf of the Authority (including,
3 without limitation, any trustee) to the effect that such unit
4 of local government has not paid or is in default as to payment
5 of the principal of, premium, if any, or interest on, or fees
6 relating to, any local government security sold or delivered to
7 the Authority or any such entity (including, without
8 limitation, any trustee) or has not paid or is in default as to
9 the payment of such lease rental payments securing the payment
10 of the principal of, premium, if any, or interest on, or other
11 fees relating to, any local government security sold or
12 delivered to the Authority or such other entity (including,
13 without limitation, any trustee):
14         (i) The State Comptroller and the State Treasurer shall
15     withhold the payment of such funds or moneys from such unit
16     of local government until the amount of such principal,
17     premium, if any, interest or fees then due and unpaid has
18     been paid to the Authority or any such entity (including,
19     without limitation, any trustee), or the State Comptroller
20     and the State Treasurer have been advised that
21     arrangements, satisfactory to the Authority or such
22     entity, have been made for the payment of such principal,
23     premium, if any, interest and fees; and
24         (ii) Within 10 days after a demand for payment by the
25     Authority or such entity given to such unit of local
26     government, the State Treasurer and the State Comptroller,
27     the State Treasurer shall pay such funds or moneys as are
28     legally available therefor to the Authority or such entity
29     for the payment of principal of, premium, if any, or
30     interest on, or fees relating to, such local government
31     securities. The Authority or any such entity may carry out
32     this Section and exercise all the rights, remedies and
33     provisions provided or referred to in this Section.
34     (d) Remedies. Upon the sale or delivery of any local
35 government securities of the Authority or its designee, the
36 local government which issued such local government securities

 

 

SB2981 Engrossed - 28 - LRB094 19189 DRH 54726 b

1 shall be deemed to have agreed that upon its failure to pay
2 interest or premium, if any, on, or principal of, or fees
3 relating to, the local government securities sold or delivered
4 to the Authority or any entity acting on behalf of the
5 Authority (including, without limitation, any trustee) when
6 payable, all statutory defenses to nonpayment are thereby
7 waived. Upon a default in payment of principal of or interest
8 on any local government securities issued by a unit of local
9 government and sold or delivered to the Authority or its
10 designee, and upon demand on the unit of local government for
11 payment, if the local government securities are payable from
12 property taxes and funds are not legally available in the
13 treasury of the unit of local government to make payment, an
14 action in mandamus for the levy of a tax by the unit of local
15 government to pay the principal of or interest on the local
16 government securities shall lie, and the Authority or such
17 entity shall be constituted a holder or owner of the local
18 government securities as being in default. Upon the occurrence
19 of any failure or default with respect to any local government
20 securities issued by a unit of local government, the Authority
21 or such entity may thereupon avail itself of all remedies,
22 rights and provisions of law applicable in the circumstances,
23 and the failure to exercise or exert any rights or remedies
24 within a time or period provided by law may not be raised as a
25 defense by the unit of local government.
26 (Source: P.A. 93-205, eff. 1-1-04.)
 
27     Section 905. The State Officers and Employees Money
28 Disposition Act is amended by changing Section 2a as follows:
 
29     (30 ILCS 230/2a)  (from Ch. 127, par. 172)
30     Sec. 2a. Every officer, board, commission, commissioner,
31 department, institute, arm, or agency to whom or to which this
32 Act applies is to notify the State Treasurer as to money paid
33 to him, her, or it under protest as provided in Section 2a.1,
34 and the Treasurer is to place the money in a special fund to be

 

 

SB2981 Engrossed - 29 - LRB094 19189 DRH 54726 b

1 known as the protest fund. At the expiration of 30 days from
2 the date of payment, the money is to be transferred from the
3 protest fund to the appropriate fund in which it would have
4 been placed had there been payment without protest unless the
5 party making that payment under protest has filed a complaint
6 and secured within that 30 days a temporary restraining order
7 or a preliminary injunction, restraining the making of that
8 transfer and unless, in addition, within that 30 days, a copy
9 of the temporary restraining order or preliminary injunction
10 has been served upon the State Treasurer and also upon the
11 officer, board, commission, commissioner, department,
12 institute, arm, or agency to whom or to which the payment under
13 protest was made, in which case the payment and such other
14 payments as are subsequently made under notice of protest, as
15 provided in Section 2a.1, by the same person, the transfer of
16 which payments is restrained by such temporary restraining
17 order or preliminary injunction, are to be held in the protest
18 fund until the final order or judgment of the court. The
19 judicial remedy herein provided, however, relates only to
20 questions which must be decided by the court in determining the
21 proper disposition of the moneys paid under protest. Any
22 authorized payment from the protest fund shall bear simple
23 interest at a rate equal to the average of the weekly rates at
24 issuance on 13-week U.S. Treasury Bills from the date of
25 deposit into the protest fund to the date of disbursement from
26 the protest fund. In cases involving temporary restraining
27 orders or preliminary injunctions entered March 10, 1982, or
28 thereafter, pursuant to this Section, when the party paying
29 under protest fails in the protest action the State Treasurer
30 shall determine if any moneys paid under protest were paid as a
31 result of assessments under the following provisions: the
32 Municipal Retailers' Occupation Tax Act, the Municipal Service
33 Occupation Tax Act, the Municipal Use Tax Act, the Municipal
34 Automobile Renting Occupation Tax Act, the Municipal
35 Automobile Renting Use Tax Act, Section 8-11-9 of the Illinois
36 Municipal Code, the Tourism, Conventions and Other Special

 

 

SB2981 Engrossed - 30 - LRB094 19189 DRH 54726 b

1 Events Promotion Act of 1967, the County Automobile Renting
2 Occupation Tax Act, the County Automobile Renting Use Tax Act,
3 Section 5-1034 of the Counties Code, Section 5.01 of the Local
4 Mass Transit District Act, the Downstate Public Transportation
5 Act, Section 4.03 of the Regional Transportation Authority Act,
6 subsections (c) and (d) of Section 201 of the Illinois Income
7 Tax Act, Section 2a.1 of the Messages Tax Act, Section 2a.1 of
8 the Gas Revenue Tax Act, Section 2a.1 of the Public Utilities
9 Revenue Act, Section 60 of the Regional Cooperation and Smart
10 Growth in Eastern Will County Act, and the Water Company
11 Invested Capital Tax Act. Any such moneys paid under protest
12 shall bear simple interest at a rate equal to the average of
13 the weekly rates at issuance on 13-week U.S. Treasury Bills
14 from the date of deposit into the protest fund to the date of
15 disbursement from the protest fund.
16     It is unlawful for the Clerk of a court, a bank or any
17 person other than the State Treasurer to be appointed as
18 trustee with respect to any purported payment under protest, or
19 otherwise to be authorized by a court to hold any purported
20 payment under protest, during the pendency of the litigation
21 involving such purported payment under protest, it being the
22 expressed intention of the General Assembly that no one is to
23 act as custodian of any such purported payment under protest
24 except the State Treasurer.
25     No payment under protest within the meaning of this Act has
26 been made unless paid to an officer, board, commission,
27 commissioner, department, institute, arm or agency brought
28 within this Act by Section 1 and unless made in the form
29 specified by Section 2a.1. No payment into court or to a
30 circuit clerk or other court-appointed trustee is a payment
31 under protest within the meaning of this Act.
32 (Source: P.A. 87-950.)
 
33     Section 910. The Use Tax Act is amended by changing Section
34 22 as follows:
 

 

 

SB2981 Engrossed - 31 - LRB094 19189 DRH 54726 b

1     (35 ILCS 105/22)  (from Ch. 120, par. 439.22)
2     Sec. 22. If it is determined that the Department should
3 issue a credit or refund under this Act, the Department may
4 first apply the amount thereof against any amount of tax or
5 penalty or interest due hereunder, or under the Retailers'
6 Occupation Tax Act, the Service Occupation Tax Act, the Service
7 Use Tax Act, any local occupation or use tax administered by
8 the Department, Section 4 of the Water Commission Act of 1985,
9 subsections (b), (c) and (d) of Section 5.01 of the Local Mass
10 Transit District Act, Section 60 of the Regional Cooperation
11 and Smart Growth in Eastern Will County Act, or subsections
12 (e), (f) and (g) of Section 4.03 of the Regional Transportation
13 Authority Act, from the person entitled to such credit or
14 refund. For this purpose, if proceedings are pending to
15 determine whether or not any tax or penalty or interest is due
16 under this Act or under the Retailers' Occupation Tax Act, the
17 Service Occupation Tax Act, the Service Use Tax Act, any local
18 occupation or use tax administered by the Department, Section 4
19 of the Water Commission Act of 1985, subsections (b), (c) and
20 (d) of Section 5.01 of the Local Mass Transit District Act,
21 Section 60 of the Regional Cooperation and Smart Growth in
22 Eastern Will County Act, or subsections (e), (f) and (g) of
23 Section 4.03 of the Regional Transportation Authority Act, from
24 such person, the Department may withhold issuance of the credit
25 or refund pending the final disposition of such proceedings and
26 may apply such credit or refund against any amount found to be
27 due to the Department as a result of such proceedings. The
28 balance, if any, of the credit or refund shall be issued to the
29 person entitled thereto.
30     Any credit memorandum issued hereunder may be used by the
31 authorized holder thereof to pay any tax or penalty or interest
32 due or to become due under this Act or under the Retailers'
33 Occupation Tax Act, the Service Occupation Tax Act, the Service
34 Use Tax Act, any local occupation or use tax administered by
35 the Department, Section 4 of the Water Commission Act of 1985,
36 subsections (b), (c) and (d) of Section 5.01 of the Local Mass

 

 

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1 Transit District Act, Section 60 of the Regional Cooperation
2 and Smart Growth in Eastern Will County Act, or subsections
3 (e), (f) and (g) of Section 4.03 of the Regional Transportation
4 Authority Act, from such holder. Subject to reasonable rules of
5 the Department, a credit memorandum issued hereunder may be
6 assigned by the holder thereof to any other person for use in
7 paying tax or penalty or interest which may be due or become
8 due under this Act or under the Retailers' Occupation Tax Act,
9 the Service Occupation Tax Act or the Service Use Tax Act, from
10 the assignee.
11     In any case in which there has been an erroneous refund of
12 tax payable under this Act, a notice of tax liability may be
13 issued at any time within 3 years from the making of that
14 refund, or within 5 years from the making of that refund if it
15 appears that any part of the refund was induced by fraud or the
16 misrepresentation of a material fact. The amount of any
17 proposed assessment set forth in the notice shall be limited to
18 the amount of the erroneous refund.
19 (Source: P.A. 91-901, eff. 1-1-01.)
 
20     Section 915. The Service Use Tax Act is amended by changing
21 Section 20 as follows:
 
22     (35 ILCS 110/20)  (from Ch. 120, par. 439.50)
23     Sec. 20. If it is determined that the Department should
24 issue a credit or refund hereunder, the Department may first
25 apply the amount thereof against any amount of tax or penalty
26 or interest due hereunder, or under the Service Occupation Tax
27 Act, the Retailers' Occupation Tax Act, the Use Tax Act, any
28 local occupation or use tax administered by the Department,
29 Section 4 of the Water Commission Act of 1985, subsections (b),
30 (c) and (d) of Section 5.01 of the Local Mass Transit District
31 Act, Section 60 of the Regional Cooperation and Smart Growth in
32 Eastern Will County Act, or subsections (e), (f) and (g) of
33 Section 4.03 of the Regional Transportation Authority Act, from
34 the person entitled to such credit or refund. For this purpose,

 

 

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1 if proceedings are pending to determine whether or not any tax
2 or penalty or interest is due hereunder, or under the Service
3 Occupation Tax Act, the Retailers' Occupation Tax Act, the Use
4 Tax Act, any local occupation or use tax administered by the
5 Department, Section 4 of the Water Commission Act of 1985,
6 subsections (b), (c) and (d) of Section 5.01 of the Local Mass
7 Transit District Act, Section 60 of the Regional Cooperation
8 and Smart Growth in Eastern Will County Act, or subsections
9 (e), (f) and (g) of Section 4.03 of the Regional Transportation
10 Authority Act, from such person, the Department may withhold
11 issuance of the credit or refund pending the final disposition
12 of such proceedings and may apply such credit or refund against
13 any amount found to be due to the Department as a result of
14 such proceedings. The balance, if any, of the credit or refund
15 shall be issued to the person entitled thereto.
16     Any credit memorandum issued hereunder may be used by the
17 authorized holder thereof to pay any tax or penalty or interest
18 due or to become due under this Act, the Service Occupation Tax
19 Act, the Retailers' Occupation Tax Act, the Use Tax Act, any
20 local occupation or use tax administered by the Department,
21 Section 4 of the Water Commission Act of 1985, subsections (b),
22 (c) and (d) of Section 5.01 of the Local Mass Transit District
23 Act, Section 60 of the Regional Cooperation and Smart Growth in
24 Eastern Will County Act, or subsections (e), (f) and (g) of
25 Section 4.03 of the Regional Transportation Authority Act, from
26 such holder. Subject to reasonable rules of the Department, a
27 credit memorandum issued hereunder may be assigned by the
28 holder thereof to any other person for use in paying tax or
29 penalty or interest which may be due or become due under this
30 Act, the Service Occupation Tax Act, the Retailers' Occupation
31 Tax Act, the Use Tax Act, any local occupation or use tax
32 administered by the Department, Section 4 of the Water
33 Commission Act of 1985, subsections (b), (c) and (d) of Section
34 5.01 of the Local Mass Transit District Act, Section 60 of the
35 Regional Cooperation and Smart Growth in Eastern Will County
36 Act, or subsections (e), (f) and (g) of Section 4.03 of the

 

 

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1 Regional Transportation Authority Act, from the assignee.
2     In any case which there has been an erroneous refund of tax
3 payable under this Act, a notice of tax liability may be issued
4 at any time within 3 years from the making of that refund, or
5 within 5 years from the making of that refund if it appears
6 that any part of the refund was induced by fraud or the
7 misrepresentation of a material fact. The amount of any
8 proposed assessment set forth in the notice shall be limited to
9 the amount of the erroneous refund.
10 (Source: P.A. 91-901, eff. 1-1-01.)
 
11     Section 920. The Service Occupation Tax Act is amended by
12 changing Section 20 as follows:
 
13     (35 ILCS 115/20)  (from Ch. 120, par. 439.120)
14     Sec. 20. If it is determined that the Department should
15 issue a credit or refund hereunder, the Department may first
16 apply the amount thereof against any amount of tax or penalty
17 or interest due hereunder, or under the Service Use Tax Act,
18 the Retailers' Occupation Tax Act, the Use Tax Act, any local
19 occupation or use tax administered by the Department, Section 4
20 of the Water Commission Act of 1985, subsections (b), (c) and
21 (d) of Section 5.01 of the Local Mass Transit District Act,
22 Section 60 of the Regional Cooperation and Smart Growth in
23 Eastern Will County Act, or subsections (e), (f) and (g) of
24 Section 4.03 of the Regional Transportation Authority Act, from
25 the person entitled to such credit or refund. For this purpose,
26 if proceedings are pending to determine whether or not any tax
27 or penalty or interest is due hereunder, or under the Service
28 Use Tax Act, the Retailers' Occupation Tax Act, the Use Tax
29 Act, any local occupation or use tax administered by the
30 Department, Section 4 of the Water Commission Act of 1985,
31 subsections (b), (c) and (d) of Section 5.01 of the Local Mass
32 Transit District Act, Section 60 of the Regional Cooperation
33 and Smart Growth in Eastern Will County Act, or subsections
34 (e), (f) and (g) of Section 4.03 of the Regional Transportation

 

 

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1 Authority Act, from such person, the Department may withhold
2 issuance of the credit or refund pending the final disposition
3 of such proceedings and may apply such credit or refund against
4 any amount found to be due to the Department as a result of
5 such proceedings. The balance, if any, of the credit or refund
6 shall be issued to the person entitled thereto.
7     Any credit memorandum issued hereunder may be used by the
8 authorized holder thereof to pay any tax or penalty or interest
9 due or to become due under this Act, or under the Service Use
10 Tax Act, the Retailers' Occupation Tax Act, the Use Tax Act,
11 any local occupation or use tax administered by the Department,
12 Section 4 of the Water Commission Act of 1985, subsections (b),
13 (c) and (d) of Section 5.01 of the Local Mass Transit District
14 Act, Section 60 of the Regional Cooperation and Smart Growth in
15 Eastern Will County Act, or subsections (e), (f) and (g) of
16 Section 4.03 of the Regional Transportation Authority Act, from
17 such holder. Subject to reasonable rules of the Department, a
18 credit memorandum issued hereunder may be assigned by the
19 holder thereof to any other person for use in paying tax or
20 penalty or interest which may be due or become due under this
21 Act, the Service Use Tax Act, the Retailers' Occupation Tax
22 Act, the Use Tax Act, any local occupation or use tax
23 administered by the Department, Section 4 of the Water
24 Commission Act of 1985, subsections (b), (c) and (d) of Section
25 5.01 of the Local Mass Transit District Act, Section 60 of the
26 Regional Cooperation and Smart Growth in Eastern Will County
27 Act, or subsections (e), (f) and (g) of Section 4.03 of the
28 Regional Transportation Authority Act, from the assignee.
29     In any case in which there has been an erroneous refund of
30 tax payable under this Act, a notice of tax liability may be
31 issued at any time within 3 years from the making of that
32 refund, or within 5 years from the making of that refund if it
33 appears that any part of the refund was induced by fraud or the
34 misrepresentation of a material fact. The amount of any
35 proposed assessment set forth in the notice shall be limited to
36 the amount of the erroneous refund.

 

 

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1 (Source: P.A. 91-901, eff. 1-1-01.)
 
2     Section 925. The Retailers' Occupation Tax Act is amended
3 by changing Section 6 as follows:
 
4     (35 ILCS 120/6)  (from Ch. 120, par. 445)
5     Sec. 6. Credit memorandum or refund. If it appears, after
6 claim therefor filed with the Department, that an amount of tax
7 or penalty or interest has been paid which was not due under
8 this Act, whether as the result of a mistake of fact or an
9 error of law, except as hereinafter provided, then the
10 Department shall issue a credit memorandum or refund to the
11 person who made the erroneous payment or, if that person died
12 or became a person under legal disability, to his or her legal
13 representative, as such. For purposes of this Section, the tax
14 is deemed to be erroneously paid by a retailer when the
15 manufacturer of a motor vehicle sold by the retailer accepts
16 the return of that automobile and refunds to the purchaser the
17 selling price of that vehicle as provided in the New Vehicle
18 Buyer Protection Act. When a motor vehicle is returned for a
19 refund of the purchase price under the New Vehicle Buyer
20 Protection Act, the Department shall issue a credit memorandum
21 or a refund for the amount of tax paid by the retailer under
22 this Act attributable to the initial sale of that vehicle.
23 Claims submitted by the retailer are subject to the same
24 restrictions and procedures provided for in this Act. If it is
25 determined that the Department should issue a credit memorandum
26 or refund, the Department may first apply the amount thereof
27 against any tax or penalty or interest due or to become due
28 under this Act or under the Use Tax Act, the Service Occupation
29 Tax Act, the Service Use Tax Act, any local occupation or use
30 tax administered by the Department, Section 4 of the Water
31 Commission Act of 1985, subsections (b), (c) and (d) of Section
32 5.01 of the Local Mass Transit District Act, Section 60 of the
33 Regional Cooperation and Smart Growth in Eastern Will County
34 Act, or subsections (e), (f) and (g) of Section 4.03 of the

 

 

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1 Regional Transportation Authority Act, from the person who made
2 the erroneous payment. If no tax or penalty or interest is due
3 and no proceeding is pending to determine whether such person
4 is indebted to the Department for tax or penalty or interest,
5 the credit memorandum or refund shall be issued to the
6 claimant; or (in the case of a credit memorandum) the credit
7 memorandum may be assigned and set over by the lawful holder
8 thereof, subject to reasonable rules of the Department, to any
9 other person who is subject to this Act, the Use Tax Act, the
10 Service Occupation Tax Act, the Service Use Tax Act, any local
11 occupation or use tax administered by the Department, Section 4
12 of the Water Commission Act of 1985, subsections (b), (c) and
13 (d) of Section 5.01 of the Local Mass Transit District Act,
14 Section 60 of the Regional Cooperation and Smart Growth in
15 Eastern Will County Act, or subsections (e), (f) and (g) of
16 Section 4.03 of the Regional Transportation Authority Act, and
17 the amount thereof applied by the Department against any tax or
18 penalty or interest due or to become due under this Act or
19 under the Use Tax Act, the Service Occupation Tax Act, the
20 Service Use Tax Act, any local occupation or use tax
21 administered by the Department, Section 4 of the Water
22 Commission Act of 1985, subsections (b), (c) and (d) of Section
23 5.01 of the Local Mass Transit District Act, Section 60 of the
24 Regional Cooperation and Smart Growth in Eastern Will County
25 Act, or subsections (e), (f) and (g) of Section 4.03 of the
26 Regional Transportation Authority Act, from such assignee.
27 However, as to any claim for credit or refund filed with the
28 Department on and after each January 1 and July 1 no amount of
29 tax or penalty or interest erroneously paid (either in total or
30 partial liquidation of a tax or penalty or amount of interest
31 under this Act) more than 3 years prior to such January 1 and
32 July 1, respectively, shall be credited or refunded, except
33 that if both the Department and the taxpayer have agreed to an
34 extension of time to issue a notice of tax liability as
35 provided in Section 4 of this Act, such claim may be filed at
36 any time prior to the expiration of the period agreed upon.

 

 

SB2981 Engrossed - 38 - LRB094 19189 DRH 54726 b

1     No claim may be allowed for any amount paid to the
2 Department, whether paid voluntarily or involuntarily, if paid
3 in total or partial liquidation of an assessment which had
4 become final before the claim for credit or refund to recover
5 the amount so paid is filed with the Department, or if paid in
6 total or partial liquidation of a judgment or order of court.
7 No credit may be allowed or refund made for any amount paid by
8 or collected from any claimant unless it appears (a) that the
9 claimant bore the burden of such amount and has not been
10 relieved thereof nor reimbursed therefor and has not shifted
11 such burden directly or indirectly through inclusion of such
12 amount in the price of the tangible personal property sold by
13 him or her or in any manner whatsoever; and that no
14 understanding or agreement, written or oral, exists whereby he
15 or she or his or her legal representative may be relieved of
16 the burden of such amount, be reimbursed therefor or may shift
17 the burden thereof; or (b) that he or she or his or her legal
18 representative has repaid unconditionally such amount to his or
19 her vendee (1) who bore the burden thereof and has not shifted
20 such burden directly or indirectly, in any manner whatsoever;
21 (2) who, if he or she has shifted such burden, has repaid
22 unconditionally such amount to his own vendee; and (3) who is
23 not entitled to receive any reimbursement therefor from any
24 other source than from his or her vendor, nor to be relieved of
25 such burden in any manner whatsoever. No credit may be allowed
26 or refund made for any amount paid by or collected from any
27 claimant unless it appears that the claimant has
28 unconditionally repaid, to the purchaser, any amount collected
29 from the purchaser and retained by the claimant with respect to
30 the same transaction under the Use Tax Act.
31     Any credit or refund that is allowed under this Section
32 shall bear interest at the rate and in the manner specified in
33 the Uniform Penalty and Interest Act.
34     In case the Department determines that the claimant is
35 entitled to a refund, such refund shall be made only from such
36 appropriation as may be available for that purpose. If it

 

 

SB2981 Engrossed - 39 - LRB094 19189 DRH 54726 b

1 appears unlikely that the amount appropriated would permit
2 everyone having a claim allowed during the period covered by
3 such appropriation to elect to receive a cash refund, the
4 Department, by rule or regulation, shall provide for the
5 payment of refunds in hardship cases and shall define what
6 types of cases qualify as hardship cases.
7     If a retailer who has failed to pay retailers' occupation
8 tax on gross receipts from retail sales is required by the
9 Department to pay such tax, such retailer, without filing any
10 formal claim with the Department, shall be allowed to take
11 credit against such retailers' occupation tax liability to the
12 extent, if any, to which such retailer has paid an amount
13 equivalent to retailers' occupation tax or has paid use tax in
14 error to his or her vendor or vendors of the same tangible
15 personal property which such retailer bought for resale and did
16 not first use before selling it, and no penalty or interest
17 shall be charged to such retailer on the amount of such credit.
18 However, when such credit is allowed to the retailer by the
19 Department, the vendor is precluded from refunding any of that
20 tax to the retailer and filing a claim for credit or refund
21 with respect thereto with the Department. The provisions of
22 this amendatory Act shall be applied retroactively, regardless
23 of the date of the transaction.
24 (Source: P.A. 91-901, eff. 1-1-01.)
 
25     Section 999. Effective date. This Act takes effect upon the
26 earlier of (i) the date of the Record of Decision by the
27 Federal Aviation Authority or (ii) the date of any transfer of
28 land for the airport from the State of Illinois to the airport
29 authority. The governing body of the airport authority shall
30 promptly file a written certification with the Index Department
31 of the Secretary of State indicating the dates on which each of
32 these events occurred.