Full Text of HB4940 097th General Assembly
HB4940eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The Counties Code is amended by changing Section | 5 | | 5-1006.7 as follows: | 6 | | (55 ILCS 5/5-1006.7) | 7 | | Sec. 5-1006.7. School facility occupation taxes. | 8 | | (a) In any county, a tax shall be imposed upon all persons | 9 | | engaged in the business of selling tangible personal property, | 10 | | other than personal property titled or registered with an | 11 | | agency of this State's government, at retail in the county on | 12 | | the gross receipts from the sales made in the course of | 13 | | business to provide revenue to be used exclusively for school | 14 | | facility purposes if a proposition for the tax has been | 15 | | submitted to the electors of that county and approved by a | 16 | | majority of those voting on the question as provided in | 17 | | subsection (c). The tax under this Section shall be imposed | 18 | | only in one-quarter percent increments and may not exceed 1%. | 19 | | This additional tax may not be imposed on the sale of food | 20 | | for human consumption that is to be consumed off the premises | 21 | | where it is sold (other than alcoholic beverages, soft drinks, | 22 | | and food that has been prepared for immediate consumption) and | 23 | | prescription and non-prescription medicines, drugs, medical |
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| 1 | | appliances and insulin, urine testing materials, syringes and | 2 | | needles used by diabetics.
The Department of Revenue has full | 3 | | power to administer and enforce this subsection, to collect all | 4 | | taxes and penalties due under this subsection, to dispose of | 5 | | taxes and penalties so collected in the manner provided in this | 6 | | subsection, and to determine all rights to credit memoranda | 7 | | arising on account of the erroneous payment of a tax or penalty | 8 | | under this subsection. The Department shall deposit all taxes | 9 | | and penalties collected under this subsection into a special | 10 | | fund created for that purpose. | 11 | | In the administration of and compliance with this | 12 | | subsection, the Department and persons who are subject to this | 13 | | subsection (i) have the same rights, remedies, privileges, | 14 | | immunities, powers, and duties, (ii) are subject to the same | 15 | | conditions, restrictions, limitations, penalties, and | 16 | | definitions of terms, and (iii) shall employ the same modes of | 17 | | procedure as are set forth in Sections 1 through 1o, 2 through | 18 | | 2-70 (in respect to all provisions contained in those Sections | 19 | | other than the State rate of tax), 2a through 2h, 3 (except as | 20 | | to the disposition of taxes and penalties collected), 4, 5, 5a, | 21 | | 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, | 22 | | 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act | 23 | | and all provisions of the Uniform Penalty and Interest Act as | 24 | | if those provisions were set forth in this subsection. | 25 | | The certificate of registration that is issued by the | 26 | | Department to a retailer under the Retailers' Occupation Tax |
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| 1 | | Act permits the retailer to engage in a business that is | 2 | | taxable without registering separately with the Department | 3 | | under an ordinance or resolution under this subsection. | 4 | | Persons subject to any tax imposed under the authority | 5 | | granted in this subsection may reimburse themselves for their | 6 | | seller's tax liability by separately stating that tax as an | 7 | | additional charge, which may be stated in combination, in a | 8 | | single amount, with State tax that sellers are required to | 9 | | collect under the Use Tax Act, pursuant to any bracketed | 10 | | schedules set forth by the Department. | 11 | | (b) If a tax has been imposed under subsection (a), then a | 12 | | service occupation tax must also be imposed at the same rate | 13 | | upon all persons engaged, in the county, in the business of | 14 | | making sales of service, who, as an incident to making those | 15 | | sales of service, transfer tangible personal property within | 16 | | the county as an incident to a sale of service. | 17 | | This tax may not be imposed on sales of food for human | 18 | | consumption that is to be consumed off the premises where it is | 19 | | sold (other than alcoholic beverages, soft drinks, and food | 20 | | prepared for immediate consumption) and prescription and | 21 | | non-prescription medicines, drugs, medical appliances and | 22 | | insulin, urine testing materials, syringes, and needles used by | 23 | | diabetics. | 24 | | The tax imposed under this subsection and all civil | 25 | | penalties that may be assessed as an incident thereof shall be | 26 | | collected and enforced by the Department and deposited into a |
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| 1 | | special fund created for that purpose. The Department has full | 2 | | power to administer and enforce this subsection, to collect all | 3 | | taxes and penalties due under this subsection, to dispose of | 4 | | taxes and penalties so collected in the manner provided in this | 5 | | subsection, and to determine all rights to credit memoranda | 6 | | arising on account of the erroneous payment of a tax or penalty | 7 | | under this subsection. | 8 | | In the administration of and compliance with this | 9 | | subsection, the Department and persons who are subject to this | 10 | | subsection shall (i) have the same rights, remedies, | 11 | | privileges, immunities, powers and duties, (ii) be subject to | 12 | | the same conditions, restrictions, limitations, penalties and | 13 | | definition of terms, and (iii) employ the same modes of | 14 | | procedure as are set forth in Sections 2 (except that that | 15 | | reference to State in the definition of supplier maintaining a | 16 | | place of business in this State means the county), 2a through | 17 | | 2d, 3 through 3-50 (in respect to all provisions contained in | 18 | | those Sections other than the State rate of tax), 4 (except | 19 | | that the reference to the State shall be to the county), 5, 7, | 20 | | 8 (except that the jurisdiction to which the tax is a debt to | 21 | | the extent indicated in that Section 8 is the county), 9 | 22 | | (except as to the disposition of taxes and penalties | 23 | | collected), 10, 11, 12 (except the reference therein to Section | 24 | | 2b of the Retailers' Occupation Tax Act), 13 (except that any | 25 | | reference to the State means the county), Section 15, 16, 17, | 26 | | 18, 19, and 20 of the Service Occupation Tax Act and all |
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| 1 | | provisions of the Uniform Penalty and Interest Act, as fully as | 2 | | if those provisions were set forth herein. | 3 | | Persons subject to any tax imposed under the authority | 4 | | granted in this subsection may reimburse themselves for their | 5 | | serviceman's tax liability by separately stating the tax as an | 6 | | additional charge, which may be stated in combination, in a | 7 | | single amount, with State tax that servicemen are authorized to | 8 | | collect under the Service Use Tax Act, pursuant to any | 9 | | bracketed schedules set forth by the Department. | 10 | | (c) The tax under this Section may not be imposed until the | 11 | | question of imposing the tax has been submitted to the electors | 12 | | of the county at a regular election and approved by a majority | 13 | | of the electors voting on the question. For all regular | 14 | | elections held prior to August 23, 2011 the effective date of | 15 | | this amendatory Act of the 97th General Assembly , upon a | 16 | | resolution by the county board or a resolution by school | 17 | | district boards that represent at least 51% of the student | 18 | | enrollment within the county, the county board must certify the | 19 | | question to the proper election authority in accordance with | 20 | | the Election Code. | 21 | | For all regular elections held prior to August 23, 2011 the | 22 | | effective date of this amendatory Act of the 97th General | 23 | | Assembly , the election authority must submit the question in | 24 | | substantially the following form: | 25 | | Shall (name of county) be authorized to impose a | 26 | | retailers' occupation tax and a service occupation tax |
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| 1 | | (commonly referred to as a "sales tax") at a rate of | 2 | | (insert rate) to be used exclusively for school facility | 3 | | purposes? | 4 | | The election authority must record the votes as "Yes" or "No". | 5 | | If a majority of the electors voting on the question vote | 6 | | in the affirmative, then the county may, thereafter, impose the | 7 | | tax. If a county board imposes a tax under this Section | 8 | | pursuant to a
referendum held before August 23, 2011 at a rate | 9 | | below the rate set forth in the question
approved by a majority | 10 | | of electors of that county voting on the question as provided | 11 | | in subsection (c), then, notwithstanding the imposition of the | 12 | | tax by the county board at such rate,
beginning on the January | 13 | | 1 or July 1 as set forth in subsection (g), the tax shall be | 14 | | imposed at the rate set forth in the question approved by a | 15 | | majority of electors of that county. | 16 | | For all regular elections held on or after August 23, 2011 | 17 | | the effective date of this amendatory Act of the 97th General | 18 | | Assembly , the regional superintendent of schools for the county | 19 | | must, upon receipt of a resolution or resolutions of school | 20 | | district boards that represent more than 50% of the student | 21 | | enrollment within the county, certify the question to the | 22 | | proper election authority for submission to the electors of the | 23 | | county at the next regular election at which the question | 24 | | lawfully may be submitted to the electors, all in accordance | 25 | | with the Election Code. | 26 | | For all regular elections held on or after August 23, 2011 |
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| 1 | | the effective date of this amendatory Act of the 97th General | 2 | | Assembly , the election authority must submit the question in | 3 | | substantially the following form: | 4 | | Shall a retailers' occupation tax and a service | 5 | | occupation tax (commonly referred to as a "sales tax") be | 6 | | imposed in (name of county) at a rate of (insert rate) to | 7 | | be used exclusively for school facility purposes? | 8 | | The election authority must record the votes as "Yes" or "No". | 9 | | If a majority of the electors voting on the question vote | 10 | | in the affirmative, then the tax shall be imposed at the rate | 11 | | set forth in the question. | 12 | | For the purposes of this subsection (c), "enrollment" means | 13 | | the head count of the students residing in the county on the | 14 | | last school day of September of each year, which must be | 15 | | reported on the Illinois State Board of Education Public School | 16 | | Fall Enrollment/Housing Report.
| 17 | | (d) The Department shall immediately pay over to the State | 18 | | Treasurer, ex officio, as trustee, all taxes and penalties | 19 | | collected under this Section to be deposited into the School | 20 | | Facility Occupation Tax Fund, which shall be an unappropriated | 21 | | trust fund held outside the State treasury. | 22 | | On or before the 25th day of each calendar month, the | 23 | | Department shall prepare and certify to the Comptroller the | 24 | | disbursement of stated sums of money to the regional | 25 | | superintendents of schools in counties from which retailers or | 26 | | servicemen have paid taxes or penalties to the Department |
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| 1 | | during the second preceding calendar month. The amount to be | 2 | | paid to each regional superintendent of schools and disbursed | 3 | | to him or her in accordance with Section 3-14.31 of the School | 4 | | Code, is equal to the amount (not including credit memoranda) | 5 | | collected from the county under this Section during the second | 6 | | preceding calendar month by the Department, (i) less 2% of that | 7 | | amount, which shall be deposited into the Tax Compliance and | 8 | | Administration Fund and shall be used by the Department, | 9 | | subject to appropriation, to cover the costs of the Department | 10 | | in administering and enforcing the provisions of this Section, | 11 | | on behalf of the county, (ii) plus an amount that the | 12 | | Department determines is necessary to offset any amounts that | 13 | | were erroneously paid to a different taxing body; (iii) less an | 14 | | amount equal to the amount of refunds made during the second | 15 | | preceding calendar month by the Department on behalf of the | 16 | | county; and (iv) less any amount that the Department determines | 17 | | is necessary to offset any amounts that were payable to a | 18 | | different taxing body but were erroneously paid to the county. | 19 | | When certifying the amount of a monthly disbursement to a | 20 | | regional superintendent of schools under this Section, the | 21 | | Department shall increase or decrease the amounts by an amount | 22 | | necessary to offset any miscalculation of previous | 23 | | disbursements within the previous 6 months from the time a | 24 | | miscalculation is discovered. | 25 | | Within 10 days after receipt by the Comptroller from the | 26 | | Department of the disbursement certification to the regional |
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| 1 | | superintendents of the schools provided for in this Section, | 2 | | the Comptroller shall cause the orders to be drawn for the | 3 | | respective amounts in accordance with directions contained in | 4 | | the certification. | 5 | | If the Department determines that a refund should be made | 6 | | under this Section to a claimant instead of issuing a credit | 7 | | memorandum, then the Department shall notify the Comptroller, | 8 | | who shall cause the order to be drawn for the amount specified | 9 | | and to the person named in the notification from the | 10 | | Department. The refund shall be paid by the Treasurer out of | 11 | | the School Facility Occupation Tax Fund.
| 12 | | (e) For the purposes of determining the local governmental | 13 | | unit whose tax is applicable, a retail sale by a producer of | 14 | | coal or another mineral mined in Illinois is a sale at retail | 15 | | at the place where the coal or other mineral mined in Illinois | 16 | | is extracted from the earth. This subsection does not apply to | 17 | | coal or another mineral when it is delivered or shipped by the | 18 | | seller to the purchaser at a point outside Illinois so that the | 19 | | sale is exempt under the United States Constitution as a sale | 20 | | in interstate or foreign commerce. | 21 | | (f) Nothing in this Section may be construed to authorize a | 22 | | tax to be imposed upon the privilege of engaging in any | 23 | | business that under the Constitution of the United States may | 24 | | not be made the subject of taxation by this State. | 25 | | (g) If a county board imposes a tax under this Section | 26 | | pursuant to a referendum held before the effective date of this |
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| 1 | | amendatory Act of the 97th General Assembly at a rate below the | 2 | | rate set forth in the question approved by a majority of | 3 | | electors of that county voting on the question as provided in | 4 | | subsection (c), then the county board may, by ordinance, | 5 | | increase the rate of the tax up to the rate set forth in the | 6 | | question approved by a majority of electors of that county | 7 | | voting on the question as provided in subsection (c). If a | 8 | | county board imposes a tax under this Section pursuant to a | 9 | | referendum held before August 23, 2011 at the rate set forth in | 10 | | the question approved by a
majority of electors of that county | 11 | | voting on the question as provided in subsection (c), the | 12 | | effective date of this amendatory Act of the 97th General | 13 | | Assembly , then the board may, by ordinance, discontinue or | 14 | | reduce the rate of the tax. If a county board imposes a
tax | 15 | | under this Section pursuant to a referendum held before August | 16 | | 23, 2011 at a rate below the
rate set forth in the question | 17 | | approved by a majority of electors of that county voting on the
| 18 | | question as provided in subsection (c), and the tax is then | 19 | | increased by this amendatory Act of the
97th General Assembly | 20 | | to the rate set forth in the question, then the county board | 21 | | may reduce or
discontinue the tax, but only in accordance with | 22 | | subsection h-5 of this Section. If a tax is imposed under this | 23 | | Section pursuant to a referendum held on or after August 23, | 24 | | 2011 the effective date of this amendatory Act of the 97th | 25 | | General Assembly , then the county board may reduce or | 26 | | discontinue the tax, but only in accordance with subsection |
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| 1 | | (h-5) of this Section. If, however, a school board issues bonds | 2 | | that are secured by the proceeds of the tax under this Section, | 3 | | then the county board may not reduce the tax rate or | 4 | | discontinue the tax if that rate reduction or discontinuance | 5 | | would adversely affect the school board's ability to pay the | 6 | | principal and interest on those bonds as they become due or | 7 | | necessitate the extension of additional property taxes to pay | 8 | | the principal and interest on those bonds. If the county board | 9 | | reduces the tax rate or discontinues the tax, then a referendum | 10 | | must be held in accordance with subsection (c) of this Section | 11 | | in order to increase the rate of the tax or to reimpose the | 12 | | discontinued tax. | 13 | | The results of any election that imposes, reduces, or | 14 | | discontinues a tax under this Section must be certified by the | 15 | | election authority, and any ordinance that increases or lowers | 16 | | the rate or discontinues the tax must be certified by the | 17 | | county clerk and, in each case, filed with the Illinois | 18 | | Department of Revenue either (i) on or before the first day of | 19 | | April, whereupon the Department shall proceed to administer and | 20 | | enforce the tax or change in the rate as of the first day of | 21 | | July next following the filing; or (ii) on or before the first | 22 | | day of October, whereupon the Department shall proceed to | 23 | | administer and enforce the tax or change in the rate as of the | 24 | | first day of January next following the filing. In any county | 25 | | where the rate of the tax is increased pursuant to subsection | 26 | | (c) of this Section, and the effective date of this
amendatory |
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| 1 | | Act of the 97th General Assembly is on or before the first day | 2 | | of April, then the Department shall proceed to administer and | 3 | | enforce the change in the rate of the tax beginning on the
| 4 | | first day of July after the effective date of this amendatory | 5 | | Act of the 97th General
Assembly. In any county where the rate | 6 | | of the tax is increased pursuant to subsection (c) of this | 7 | | Section, and the effective date of this
amendatory Act of the | 8 | | 97th General Assembly is on or before the first day of October, | 9 | | then the Department shall proceed to administer and enforce the | 10 | | change in the rate of the tax beginning on the
first day of | 11 | | January after the effective date of this amendatory Act of the | 12 | | 97th General Assembly. | 13 | | (h) For purposes of this Section, "school facility | 14 | | purposes" means (i) the acquisition, development, | 15 | | construction, reconstruction, rehabilitation, improvement, | 16 | | financing, architectural planning, and installation of capital | 17 | | facilities consisting of buildings, structures, and durable | 18 | | equipment and for the acquisition and improvement of real | 19 | | property and interest in real property required, or expected to | 20 | | be required, in connection with the capital facilities and (ii) | 21 | | the payment of bonds or other obligations heretofore or | 22 | | hereafter issued, including bonds or other obligations | 23 | | heretofore or hereafter issued to refund or to continue to | 24 | | refund bonds or other obligations issued, for school facility | 25 | | purposes, provided that the taxes levied to pay those bonds are | 26 | | abated by the amount of the taxes imposed under this Section |
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| 1 | | that are used to pay those bonds. "School-facility purposes" | 2 | | also includes fire prevention, safety, energy conservation, | 3 | | disabled accessibility, school security, and specified repair | 4 | | purposes set forth under Section 17-2.11 of the School Code. | 5 | | (h-5) A county board in a county where a tax has been (i) | 6 | | imposed under this Section pursuant to a referendum held on or | 7 | | after August 23, 2011, or (ii) increased pursuant to this | 8 | | amendatory Act of the 97th General Assembly the effective date | 9 | | of this amendatory Act of the 97th General Assembly may, by | 10 | | ordinance or resolution, submit to the voters of the county the | 11 | | question of reducing or discontinuing the tax. In the ordinance | 12 | | or resolution, the county board shall certify the question to | 13 | | the proper election authority in accordance with the Election | 14 | | Code. The election authority must submit the question in | 15 | | substantially the following form: | 16 | | Shall the school facility retailers' occupation tax | 17 | | and service occupation tax (commonly referred to as the | 18 | | "school facility sales tax") currently imposed in (name of | 19 | | county) at a rate of (insert rate) be (reduced to (insert | 20 | | rate))(discontinued)? | 21 | | If a majority of the electors voting on the question vote in | 22 | | the affirmative, then, subject to the provisions of subsection | 23 | | (g) of this Section, the tax shall be reduced or discontinued | 24 | | as set forth in the question. | 25 | | (i) This Section does not apply to Cook County. | 26 | | (j) This Section may be cited as the County School Facility |
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| 1 | | Occupation Tax Law.
| 2 | | (Source: P.A. 97-542, eff. 8-23-11; revised 11-18-11.)
| 3 | | Section 99. Effective date. This Act takes effect upon | 4 | | becoming law.
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