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90_HB0533sam001
LRB9000527KDksam
1 AMENDMENT TO HOUSE BILL 533
2 AMENDMENT NO. . Amend House Bill 533 by replacing
3 the title with the following:
4 "AN ACT concerning occupation and use taxes."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Use Tax Act is amended by changing
8 Section 3-5 as follows:
9 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
10 Sec. 3-5. Exemptions. Use of the following tangible
11 personal property is exempt from the tax imposed by this Act:
12 (1) Personal property purchased from a corporation,
13 society, association, foundation, institution, or
14 organization, other than a limited liability company, that is
15 organized and operated as a not-for-profit service enterprise
16 for the benefit of persons 65 years of age or older if the
17 personal property was not purchased by the enterprise for the
18 purpose of resale by the enterprise.
19 (2) Personal property purchased by a not-for-profit
20 Illinois county fair association for use in conducting,
21 operating, or promoting the county fair.
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1 (3) Personal property purchased by a not-for-profit
2 music or dramatic arts organization that establishes, by
3 proof required by the Department by rule, that it has
4 received an exemption under Section 501(c)(3) of the Internal
5 Revenue Code and that is organized and operated for the
6 presentation of live public performances of musical or
7 theatrical works on a regular basis.
8 (4) Personal property purchased by a governmental body,
9 by a corporation, society, association, foundation, or
10 institution organized and operated exclusively for
11 charitable, religious, or educational purposes, or by a
12 not-for-profit corporation, society, association, foundation,
13 institution, or organization that has no compensated officers
14 or employees and that is organized and operated primarily for
15 the recreation of persons 55 years of age or older. A limited
16 liability company may qualify for the exemption under this
17 paragraph only if the limited liability company is organized
18 and operated exclusively for educational purposes. On and
19 after July 1, 1987, however, no entity otherwise eligible for
20 this exemption shall make tax-free purchases unless it has an
21 active exemption identification number issued by the
22 Department.
23 (5) A passenger car that is a replacement vehicle to the
24 extent that the purchase price of the car is subject to the
25 Replacement Vehicle Tax.
26 (6) Graphic arts machinery and equipment, including
27 repair and replacement parts, both new and used, and
28 including that manufactured on special order, certified by
29 the purchaser to be used primarily for graphic arts
30 production, and including machinery and equipment purchased
31 for lease.
32 (7) Farm chemicals.
33 (8) Legal tender, currency, medallions, or gold or
34 silver coinage issued by the State of Illinois, the
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1 government of the United States of America, or the government
2 of any foreign country, and bullion.
3 (9) Personal property purchased from a teacher-sponsored
4 student organization affiliated with an elementary or
5 secondary school located in Illinois.
6 (10) A motor vehicle of the first division, a motor
7 vehicle of the second division that is a self-contained motor
8 vehicle designed or permanently converted to provide living
9 quarters for recreational, camping, or travel use, with
10 direct walk through to the living quarters from the driver's
11 seat, or a motor vehicle of the second division that is of
12 the van configuration designed for the transportation of not
13 less than 7 nor more than 16 passengers, as defined in
14 Section 1-146 of the Illinois Vehicle Code, that is used for
15 automobile renting, as defined in the Automobile Renting
16 Occupation and Use Tax Act.
17 (11) Farm machinery and equipment, both new and used,
18 including that manufactured on special order, certified by
19 the purchaser to be used primarily for production agriculture
20 or State or federal agricultural programs, including
21 individual replacement parts for the machinery and equipment,
22 and including machinery and equipment purchased for lease,
23 but excluding motor vehicles required to be registered under
24 the Illinois Vehicle Code.
25 (12) Fuel and petroleum products sold to or used by an
26 air common carrier, certified by the carrier to be used for
27 consumption, shipment, or storage in the conduct of its
28 business as an air common carrier, for a flight destined for
29 or returning from a location or locations outside the United
30 States without regard to previous or subsequent domestic
31 stopovers.
32 (13) Proceeds of mandatory service charges separately
33 stated on customers' bills for the purchase and consumption
34 of food and beverages purchased at retail from a retailer, to
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1 the extent that the proceeds of the service charge are in
2 fact turned over as tips or as a substitute for tips to the
3 employees who participate directly in preparing, serving,
4 hosting or cleaning up the food or beverage function with
5 respect to which the service charge is imposed.
6 (14) Oil field exploration, drilling, and production
7 equipment, including (i) rigs and parts of rigs, rotary rigs,
8 cable tool rigs, and workover rigs, (ii) pipe and tubular
9 goods, including casing and drill strings, (iii) pumps and
10 pump-jack units, (iv) storage tanks and flow lines, (v) any
11 individual replacement part for oil field exploration,
12 drilling, and production equipment, and (vi) machinery and
13 equipment purchased for lease; but excluding motor vehicles
14 required to be registered under the Illinois Vehicle Code.
15 (15) Photoprocessing machinery and equipment, including
16 repair and replacement parts, both new and used, including
17 that manufactured on special order, certified by the
18 purchaser to be used primarily for photoprocessing, and
19 including photoprocessing machinery and equipment purchased
20 for lease.
21 (16) Coal exploration, mining, offhighway hauling,
22 processing, maintenance, and reclamation equipment, including
23 replacement parts and equipment, and including equipment
24 purchased for lease, but excluding motor vehicles required to
25 be registered under the Illinois Vehicle Code.
26 (17) Distillation machinery and equipment, sold as a
27 unit or kit, assembled or installed by the retailer,
28 certified by the user to be used only for the production of
29 ethyl alcohol that will be used for consumption as motor fuel
30 or as a component of motor fuel for the personal use of the
31 user, and not subject to sale or resale.
32 (18) Manufacturing and assembling machinery and
33 equipment used primarily in the process of manufacturing or
34 assembling tangible personal property for wholesale or retail
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1 sale or lease, whether that sale or lease is made directly by
2 the manufacturer or by some other person, whether the
3 materials used in the process are owned by the manufacturer
4 or some other person, or whether that sale or lease is made
5 apart from or as an incident to the seller's engaging in the
6 service occupation of producing machines, tools, dies, jigs,
7 patterns, gauges, or other similar items of no commercial
8 value on special order for a particular purchaser.
9 (19) Personal property delivered to a purchaser or
10 purchaser's donee inside Illinois when the purchase order for
11 that personal property was received by a florist located
12 outside Illinois who has a florist located inside Illinois
13 deliver the personal property.
14 (20) Semen used for artificial insemination of livestock
15 for direct agricultural production.
16 (21) Horses, or interests in horses, registered with and
17 meeting the requirements of any of the Arabian Horse Club
18 Registry of America, Appaloosa Horse Club, American Quarter
19 Horse Association, United States Trotting Association, or
20 Jockey Club, as appropriate, used for purposes of breeding or
21 racing for prizes.
22 (22) Computers and communications equipment utilized
23 for any hospital purpose and equipment used in the diagnosis,
24 analysis, or treatment of hospital patients purchased by a
25 lessor who leases the equipment, under a lease of one year or
26 longer executed or in effect at the time the lessor would
27 otherwise be subject to the tax imposed by this Act, to a
28 hospital that has been issued an active tax exemption
29 identification number by the Department under Section 1g of
30 the Retailers' Occupation Tax Act. If the equipment is
31 leased in a manner that does not qualify for this exemption
32 or is used in any other non-exempt manner, the lessor shall
33 be liable for the tax imposed under this Act or the Service
34 Use Tax Act, as the case may be, based on the fair market
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1 value of the property at the time the non-qualifying use
2 occurs. No lessor shall collect or attempt to collect an
3 amount (however designated) that purports to reimburse that
4 lessor for the tax imposed by this Act or the Service Use Tax
5 Act, as the case may be, if the tax has not been paid by the
6 lessor. If a lessor improperly collects any such amount from
7 the lessee, the lessee shall have a legal right to claim a
8 refund of that amount from the lessor. If, however, that
9 amount is not refunded to the lessee for any reason, the
10 lessor is liable to pay that amount to the Department.
11 (23) Personal property purchased by a lessor who leases
12 the property, under a lease of one year or longer executed
13 or in effect at the time the lessor would otherwise be
14 subject to the tax imposed by this Act, to a governmental
15 body that has been issued an active sales tax exemption
16 identification number by the Department under Section 1g of
17 the Retailers' Occupation Tax Act. If the property is leased
18 in a manner that does not qualify for this exemption or used
19 in any other non-exempt manner, the lessor shall be liable
20 for the tax imposed under this Act or the Service Use Tax
21 Act, as the case may be, based on the fair market value of
22 the property at the time the non-qualifying use occurs. No
23 lessor shall collect or attempt to collect an amount (however
24 designated) that purports to reimburse that lessor for the
25 tax imposed by this Act or the Service Use Tax Act, as the
26 case may be, if the tax has not been paid by the lessor. If
27 a lessor improperly collects any such amount from the lessee,
28 the lessee shall have a legal right to claim a refund of that
29 amount from the lessor. If, however, that amount is not
30 refunded to the lessee for any reason, the lessor is liable
31 to pay that amount to the Department.
32 (24) Beginning with taxable years ending on or after
33 December 31, 1995 and ending with taxable years ending on or
34 before December 31, 2004, personal property that is donated
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1 for disaster relief to be used in a State or federally
2 declared disaster area in Illinois or bordering Illinois by a
3 manufacturer or retailer that is registered in this State to
4 a corporation, society, association, foundation, or
5 institution that has been issued a sales tax exemption
6 identification number by the Department that assists victims
7 of the disaster who reside within the declared disaster area.
8 (25) Beginning with taxable years ending on or after
9 December 31, 1995 and ending with taxable years ending on or
10 before December 31, 2004, personal property that is used in
11 the performance of infrastructure repairs in this State,
12 including but not limited to municipal roads and streets,
13 access roads, bridges, sidewalks, waste disposal systems,
14 water and sewer line extensions, water distribution and
15 purification facilities, storm water drainage and retention
16 facilities, and sewage treatment facilities, resulting from a
17 State or federally declared disaster in Illinois or bordering
18 Illinois when such repairs are initiated on facilities
19 located in the declared disaster area within 6 months after
20 the disaster.
21 (26) Qualified technological equipment as defined in
22 Section 168(i)(2) of the Internal Revenue Code purchased by a
23 lessor after the effective date of this amendatory Act of
24 1997 who has elected, as to all such equipment leased by the
25 lessor, to pay retailers' occupation tax based on the
26 lessor's gross receipts from the lease of the equipment in
27 this State to a lessee for his or her use and not for the
28 purpose of sublease. This provision shall not be construed
29 to impose any liability upon the lessee; nor shall this
30 provision be construed to create any right to a refund of any
31 tax previously paid by the lessor; nor shall this provision
32 be construed to exempt any lessor entirely from the payment
33 of the applicable tax, it being understood that the lessor
34 shall pay either the use tax, or, upon election under this
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1 paragraph, shall voluntarily pay the retailers' occupation
2 tax. The provisions of this paragraph shall be exempt from
3 the provisions of Section 3-90.
4 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
5 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
6 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97.)
7 Section 10. The Retailers' Occupation Tax Act is amended
8 by changing Section 2-5 as follows:
9 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
10 Sec. 2-5. Exemptions. Gross receipts from proceeds from
11 the sale of the following tangible personal property are
12 exempt from the tax imposed by this Act:
13 (1) Farm chemicals.
14 (2) Farm machinery and equipment, both new and used,
15 including that manufactured on special order, certified by
16 the purchaser to be used primarily for production agriculture
17 or State or federal agricultural programs, including
18 individual replacement parts for the machinery and equipment,
19 and including machinery and equipment purchased for lease,
20 but excluding motor vehicles required to be registered under
21 the Illinois Vehicle Code.
22 (3) Distillation machinery and equipment, sold as a unit
23 or kit, assembled or installed by the retailer, certified by
24 the user to be used only for the production of ethyl alcohol
25 that will be used for consumption as motor fuel or as a
26 component of motor fuel for the personal use of the user, and
27 not subject to sale or resale.
28 (4) Graphic arts machinery and equipment, including
29 repair and replacement parts, both new and used, and
30 including that manufactured on special order or purchased for
31 lease, certified by the purchaser to be used primarily for
32 graphic arts production.
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1 (5) A motor vehicle of the first division, a motor
2 vehicle of the second division that is a self-contained motor
3 vehicle designed or permanently converted to provide living
4 quarters for recreational, camping, or travel use, with
5 direct walk through access to the living quarters from the
6 driver's seat, or a motor vehicle of the second division that
7 is of the van configuration designed for the transportation
8 of not less than 7 nor more than 16 passengers, as defined in
9 Section 1-146 of the Illinois Vehicle Code, that is used for
10 automobile renting, as defined in the Automobile Renting
11 Occupation and Use Tax Act.
12 (6) Personal property sold by a teacher-sponsored
13 student organization affiliated with an elementary or
14 secondary school located in Illinois.
15 (7) Proceeds of that portion of the selling price of a
16 passenger car the sale of which is subject to the Replacement
17 Vehicle Tax.
18 (8) Personal property sold to an Illinois county fair
19 association for use in conducting, operating, or promoting
20 the county fair.
21 (9) Personal property sold to a not-for-profit music or
22 dramatic arts organization that establishes, by proof
23 required by the Department by rule, that it has received an
24 exemption under Section 501(c) (3) of the Internal Revenue
25 Code and that is organized and operated for the presentation
26 of live public performances of musical or theatrical works on
27 a regular basis.
28 (10) Personal property sold by a corporation, society,
29 association, foundation, institution, or organization, other
30 than a limited liability company, that is organized and
31 operated as a not-for-profit service enterprise for the
32 benefit of persons 65 years of age or older if the personal
33 property was not purchased by the enterprise for the purpose
34 of resale by the enterprise.
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1 (11) Personal property sold to a governmental body, to a
2 corporation, society, association, foundation, or institution
3 organized and operated exclusively for charitable, religious,
4 or educational purposes, or to a not-for-profit corporation,
5 society, association, foundation, institution, or
6 organization that has no compensated officers or employees
7 and that is organized and operated primarily for the
8 recreation of persons 55 years of age or older. A limited
9 liability company may qualify for the exemption under this
10 paragraph only if the limited liability company is organized
11 and operated exclusively for educational purposes. On and
12 after July 1, 1987, however, no entity otherwise eligible for
13 this exemption shall make tax-free purchases unless it has an
14 active identification number issued by the Department.
15 (12) Personal property sold to interstate carriers for
16 hire for use as rolling stock moving in interstate commerce
17 or to lessors under leases of one year or longer executed or
18 in effect at the time of purchase by interstate carriers for
19 hire for use as rolling stock moving in interstate commerce
20 and equipment operated by a telecommunications provider,
21 licensed as a common carrier by the Federal Communications
22 Commission, which is permanently installed in or affixed to
23 aircraft moving in interstate commerce.
24 (13) Proceeds from sales to owners, lessors, or shippers
25 of tangible personal property that is utilized by interstate
26 carriers for hire for use as rolling stock moving in
27 interstate commerce and equipment operated by a
28 telecommunications provider, licensed as a common carrier by
29 the Federal Communications Commission, which is permanently
30 installed in or affixed to aircraft moving in interstate
31 commerce.
32 (14) Machinery and equipment that will be used by the
33 purchaser, or a lessee of the purchaser, primarily in the
34 process of manufacturing or assembling tangible personal
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1 property for wholesale or retail sale or lease, whether the
2 sale or lease is made directly by the manufacturer or by some
3 other person, whether the materials used in the process are
4 owned by the manufacturer or some other person, or whether
5 the sale or lease is made apart from or as an incident to the
6 seller's engaging in the service occupation of producing
7 machines, tools, dies, jigs, patterns, gauges, or other
8 similar items of no commercial value on special order for a
9 particular purchaser.
10 (15) Proceeds of mandatory service charges separately
11 stated on customers' bills for purchase and consumption of
12 food and beverages, to the extent that the proceeds of the
13 service charge are in fact turned over as tips or as a
14 substitute for tips to the employees who participate directly
15 in preparing, serving, hosting or cleaning up the food or
16 beverage function with respect to which the service charge is
17 imposed.
18 (16) Petroleum products sold to a purchaser if the
19 seller is prohibited by federal law from charging tax to the
20 purchaser.
21 (17) Tangible personal property sold to a common carrier
22 by rail or motor that receives the physical possession of the
23 property in Illinois and that transports the property, or
24 shares with another common carrier in the transportation of
25 the property, out of Illinois on a standard uniform bill of
26 lading showing the seller of the property as the shipper or
27 consignor of the property to a destination outside Illinois,
28 for use outside Illinois.
29 (18) Legal tender, currency, medallions, or gold or
30 silver coinage issued by the State of Illinois, the
31 government of the United States of America, or the government
32 of any foreign country, and bullion.
33 (19) Oil field exploration, drilling, and production
34 equipment, including (i) rigs and parts of rigs, rotary rigs,
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1 cable tool rigs, and workover rigs, (ii) pipe and tubular
2 goods, including casing and drill strings, (iii) pumps and
3 pump-jack units, (iv) storage tanks and flow lines, (v) any
4 individual replacement part for oil field exploration,
5 drilling, and production equipment, and (vi) machinery and
6 equipment purchased for lease; but excluding motor vehicles
7 required to be registered under the Illinois Vehicle Code.
8 (20) Photoprocessing machinery and equipment, including
9 repair and replacement parts, both new and used, including
10 that manufactured on special order, certified by the
11 purchaser to be used primarily for photoprocessing, and
12 including photoprocessing machinery and equipment purchased
13 for lease.
14 (21) Coal exploration, mining, offhighway hauling,
15 processing, maintenance, and reclamation equipment, including
16 replacement parts and equipment, and including equipment
17 purchased for lease, but excluding motor vehicles required to
18 be registered under the Illinois Vehicle Code.
19 (22) Fuel and petroleum products sold to or used by an
20 air carrier, certified by the carrier to be used for
21 consumption, shipment, or storage in the conduct of its
22 business as an air common carrier, for a flight destined for
23 or returning from a location or locations outside the United
24 States without regard to previous or subsequent domestic
25 stopovers.
26 (23) A transaction in which the purchase order is
27 received by a florist who is located outside Illinois, but
28 who has a florist located in Illinois deliver the property to
29 the purchaser or the purchaser's donee in Illinois.
30 (24) Fuel consumed or used in the operation of ships,
31 barges, or vessels that are used primarily in or for the
32 transportation of property or the conveyance of persons for
33 hire on rivers bordering on this State if the fuel is
34 delivered by the seller to the purchaser's barge, ship, or
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1 vessel while it is afloat upon that bordering river.
2 (25) A motor vehicle sold in this State to a nonresident
3 even though the motor vehicle is delivered to the nonresident
4 in this State, if the motor vehicle is not to be titled in
5 this State, and if a driveaway decal permit is issued to the
6 motor vehicle as provided in Section 3-603 of the Illinois
7 Vehicle Code or if the nonresident purchaser has vehicle
8 registration plates to transfer to the motor vehicle upon
9 returning to his or her home state. The issuance of the
10 driveaway decal permit or having the out-of-state
11 registration plates to be transferred is prima facie evidence
12 that the motor vehicle will not be titled in this State.
13 (26) Semen used for artificial insemination of livestock
14 for direct agricultural production.
15 (27) Horses, or interests in horses, registered with and
16 meeting the requirements of any of the Arabian Horse Club
17 Registry of America, Appaloosa Horse Club, American Quarter
18 Horse Association, United States Trotting Association, or
19 Jockey Club, as appropriate, used for purposes of breeding or
20 racing for prizes.
21 (28) Computers and communications equipment utilized
22 for any hospital purpose and equipment used in the diagnosis,
23 analysis, or treatment of hospital patients sold to a lessor
24 who leases the equipment, under a lease of one year or longer
25 executed or in effect at the time of the purchase, to a
26 hospital that has been issued an active tax exemption
27 identification number by the Department under Section 1g of
28 this Act.
29 (29) Personal property sold to a lessor who leases the
30 property, under a lease of one year or longer executed or in
31 effect at the time of the purchase, to a governmental body
32 that has been issued an active tax exemption identification
33 number by the Department under Section 1g of this Act.
34 (30) Beginning with taxable years ending on or after
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1 December 31, 1995 and ending with taxable years ending on or
2 before December 31, 2004, personal property that is donated
3 for disaster relief to be used in a State or federally
4 declared disaster area in Illinois or bordering Illinois by a
5 manufacturer or retailer that is registered in this State to
6 a corporation, society, association, foundation, or
7 institution that has been issued a sales tax exemption
8 identification number by the Department that assists victims
9 of the disaster who reside within the declared disaster area.
10 (31) Beginning with taxable years ending on or after
11 December 31, 1995 and ending with taxable years ending on or
12 before December 31, 2004, personal property that is used in
13 the performance of infrastructure repairs in this State,
14 including but not limited to municipal roads and streets,
15 access roads, bridges, sidewalks, waste disposal systems,
16 water and sewer line extensions, water distribution and
17 purification facilities, storm water drainage and retention
18 facilities, and sewage treatment facilities, resulting from a
19 State or federally declared disaster in Illinois or bordering
20 Illinois when such repairs are initiated on facilities
21 located in the declared disaster area within 6 months after
22 the disaster.
23 (32) Qualified technological equipment as defined in
24 Section 168(i)(2) of the Internal Revenue Code purchased by a
25 lessor after the effective date of this amendatory Act of
26 1997 who has elected, as to all such equipment leased by the
27 lessor, to pay the tax imposed under this Act based on the
28 lessor's gross receipts from the lease of the equipment in
29 this State to a lessee for his or her use and not for the
30 purpose of sublease. This election may be made by the
31 issuance of an exemption certificate to the seller of the
32 equipment indicating the lessor's registration number under
33 this Act, and certifying that the lessor elects to pay
34 retailers' occupation tax measured by the gross receipts from
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1 the lease. If this election is made, the gross receipts of
2 each lease payment will be deemed to be receipts from sales
3 at retail for purposes of this Act.
4 As used in this Section, "lease" means an operating or
5 true lease. An operating or true lease is a lease under
6 which, for federal income tax purposes, the lessor is
7 considered to be the owner of the leased property. For
8 federal income tax purposes, a lessor is considered to be the
9 owner of the property if the lessor is permitted to claim a
10 depreciation expense deduction for the property. The gross
11 receipts from the sale or lease of property for which this
12 election has been made shall be subject to the tax imposed by
13 this Act on any subsequent sale or lease in this State.
14 Lessors shall be subject to the tax imposed under the Use Tax
15 Act based on the fair market value of any property returned
16 to the lessor at the termination of a lease if the property
17 is used for any purpose other than the further sale or lease
18 of the property. The provisions of this paragraph shall be
19 exempt from the provisions of Section 2-70. This paragraph
20 shall not be construed to create any right to a refund of any
21 tax previously paid by such lessor; nor shall this paragraph
22 be construed to exempt any lessor entirely from the payment
23 of the applicable tax, it being understood that the lessor
24 shall pay either the use tax, or, upon election under this
25 paragraph, shall voluntarily pay the tax provided for in this
26 Section.
27 Lessors electing to pay retailers' occupation tax under
28 this paragraph shall be exempt from such tax on the gross
29 receipts from the lease of equipment purchased from a lessee
30 in a transaction in which the lessee sells the equipment to
31 the lessor and leases the equipment back from the lessor
32 within one year of the lessee's purchase of the equipment,
33 and all applicable Illinois tax due on the lessee's purchase
34 has been paid.
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1 (Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
2 89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
3 6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519,
4 eff. 6-1-98.)
5 Section 15. The Counties Code is amended by changing
6 Sections 5-1006 and 5-1006.5 as follows:
7 (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
8 Sec. 5-1006. Home Rule County Retailers' Occupation Tax.
9 Any county that is a home rule unit may impose a tax upon all
10 persons engaged in the business of selling tangible personal
11 property, other than an item of tangible personal property
12 titled or registered with an agency of this State's
13 government, at retail in the county on the gross receipts
14 from such sales made in the course of their business. If
15 imposed, this tax shall only be imposed in 1/4% increments.
16 On and after September 1, 1991, this additional tax may not
17 be imposed on the sales of food for human consumption which
18 is to be consumed off the premises where it is sold (other
19 than alcoholic beverages, soft drinks and food which has been
20 prepared for immediate consumption) and prescription and
21 nonprescription medicines, drugs, medical appliances and
22 insulin, urine testing materials, syringes and needles used
23 by diabetics. The tax imposed by a home rule county pursuant
24 to this Section and all civil penalties that may be assessed
25 as an incident thereof shall be collected and enforced by the
26 State Department of Revenue. The certificate of registration
27 that is issued by the Department to a retailer under the
28 Retailers' Occupation Tax Act shall permit the retailer to
29 engage in a business that is taxable under any ordinance or
30 resolution enacted pursuant to this Section without
31 registering separately with the Department under such
32 ordinance or resolution or under this Section. The
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1 Department shall have full power to administer and enforce
2 this Section; to collect all taxes and penalties due
3 hereunder; to dispose of taxes and penalties so collected in
4 the manner hereinafter provided; and to determine all rights
5 to credit memoranda arising on account of the erroneous
6 payment of tax or penalty hereunder. In the administration
7 of, and compliance with, this Section, the Department and
8 persons who are subject to this Section shall have the same
9 rights, remedies, privileges, immunities, powers and duties,
10 and be subject to the same conditions, restrictions,
11 limitations, penalties and definitions of terms, and employ
12 the same modes of procedure, as are prescribed in Sections 1,
13 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to
14 all provisions therein other than the State rate of tax), 4,
15 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b,
16 6c, 7, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation
17 Tax Act and Section 3-7 of the Uniform Penalty and Interest
18 Act, as fully as if those provisions were set forth herein.
19 No tax may be imposed by a home rule county pursuant to
20 this Section unless the county also imposes a tax at the same
21 rate pursuant to Section 5-1007.
22 Persons subject to any tax imposed pursuant to the
23 authority granted in this Section may reimburse themselves
24 for their seller's tax liability hereunder by separately
25 stating such tax as an additional charge, which charge may be
26 stated in combination, in a single amount, with State tax
27 which sellers are required to collect under the Use Tax Act,
28 pursuant to such bracket schedules as the Department may
29 prescribe.
30 Whenever the Department determines that a refund should
31 be made under this Section to a claimant instead of issuing a
32 credit memorandum, the Department shall notify the State
33 Comptroller, who shall cause the order to be drawn for the
34 amount specified and to the person named in the notification
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1 from the Department. The refund shall be paid by the State
2 Treasurer out of the home rule county retailers' occupation
3 tax fund.
4 The Department shall forthwith pay over to the State
5 Treasurer, ex officio, as trustee, all taxes and penalties
6 collected hereunder. On or before the 25th day of each
7 calendar month, the Department shall prepare and certify to
8 the Comptroller the disbursement of stated sums of money to
9 named counties, the counties to be those from which retailers
10 have paid taxes or penalties hereunder to the Department
11 during the second preceding calendar month. The amount to be
12 paid to each county shall be the amount (not including credit
13 memoranda) collected hereunder during the second preceding
14 calendar month by the Department plus an amount the
15 Department determines is necessary to offset any amounts that
16 were erroneously paid to a different taxing body, and not
17 including an amount equal to the amount of refunds made
18 during the second preceding calendar month by the Department
19 on behalf of such county, and not including any amount which
20 the Department determines is necessary to offset any amounts
21 which were payable to a different taxing body but were
22 erroneously paid to the county. Within 10 days after receipt,
23 by the Comptroller, of the disbursement certification to the
24 counties provided for in this Section to be given to the
25 Comptroller by the Department, the Comptroller shall cause
26 the orders to be drawn for the respective amounts in
27 accordance with the directions contained in the
28 certification.
29 In addition to the disbursement required by the preceding
30 paragraph, an allocation shall be made in March of each year
31 to each county that received more than $500,000 in
32 disbursements under the preceding paragraph in the preceding
33 calendar year. The allocation shall be in an amount equal to
34 the average monthly distribution made to each such county
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1 under the preceding paragraph during the preceding calendar
2 year (excluding the 2 months of highest receipts). The
3 distribution made in March of each year subsequent to the
4 year in which an allocation was made pursuant to this
5 paragraph and the preceding paragraph shall be reduced by the
6 amount allocated and disbursed under this paragraph in the
7 preceding calendar year. The Department shall prepare and
8 certify to the Comptroller for disbursement the allocations
9 made in accordance with this paragraph.
10 For the purpose of determining the local governmental
11 unit whose tax is applicable, a retail sale by a producer of
12 coal or other mineral mined in Illinois is a sale at retail
13 at the place where the coal or other mineral mined in
14 Illinois is extracted from the earth. This paragraph does
15 not apply to coal or other mineral when it is delivered or
16 shipped by the seller to the purchaser at a point outside
17 Illinois so that the sale is exempt under the United States
18 Constitution as a sale in interstate or foreign commerce. For
19 purposes of determining the local governmental unit whose tax
20 is applicable under Section 2-5(32) of the Retailers'
21 Occupation Tax Act, a retail sale by a lessor is a sale at
22 retail at the place where leased tangible personal property
23 is located.
24 Nothing in this Section shall be construed to authorize a
25 county to impose a tax upon the privilege of engaging in any
26 business which under the Constitution of the United States
27 may not be made the subject of taxation by this State.
28 An ordinance or resolution imposing or discontinuing a
29 tax hereunder or effecting a change in the rate thereof shall
30 be adopted and a certified copy thereof filed with the
31 Department on or before the first day of June, whereupon the
32 Department shall proceed to administer and enforce this
33 Section as of the first day of September next following such
34 adoption and filing. Beginning January 1, 1992, an ordinance
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1 or resolution imposing or discontinuing the tax hereunder or
2 effecting a change in the rate thereof shall be adopted and a
3 certified copy thereof filed with the Department on or before
4 the first day of July, whereupon the Department shall proceed
5 to administer and enforce this Section as of the first day of
6 October next following such adoption and filing. Beginning
7 January 1, 1993, an ordinance or resolution imposing or
8 discontinuing the tax hereunder or effecting a change in the
9 rate thereof shall be adopted and a certified copy thereof
10 filed with the Department on or before the first day of
11 October, whereupon the Department shall proceed to administer
12 and enforce this Section as of the first day of January next
13 following such adoption and filing.
14 When certifying the amount of a monthly disbursement to a
15 county under this Section, the Department shall increase or
16 decrease such amount by an amount necessary to offset any
17 misallocation of previous disbursements. The offset amount
18 shall be the amount erroneously disbursed within the previous
19 6 months from the time a misallocation is discovered.
20 This Section shall be known and may be cited as the "Home
21 Rule County Retailers' Occupation Tax Law".
22 (Source: P.A. 86-962; 86-1028; 86-1475; 87-205; 87-895.)
23 (55 ILCS 5/5-1006.5)
24 Sec. 5-1006.5. Special County Retailers' Occupation Tax
25 For Public Safety.
26 (a) The county board of any county may impose a tax upon
27 all persons engaged in the business of selling tangible
28 personal property, other than personal property titled or
29 registered with an agency of this State's government, at
30 retail in the county on the gross receipts from the sales
31 made in the course of business to provide revenue to be used
32 exclusively for public safety purposes in that county, if a
33 proposition for the tax has been submitted to the electors of
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1 that county and approved by a majority of those voting on the
2 question. If imposed, this tax shall be imposed only in
3 one-quarter percent increments. By resolution, the county
4 board may order the proposition to be submitted at any
5 election. The county clerk shall certify the question to the
6 proper election authority, who shall submit the proposition
7 at an election in accordance with the general election law.
8 The proposition shall be in substantially the following
9 form:
10 "Shall (name of county) be authorized to impose a
11 public safety tax at the rate of .... upon all persons
12 engaged in the business of selling tangible personal
13 property at retail in the county on gross receipts from
14 the sales made in the course of their business to be used
15 for crime prevention, detention, and other public safety
16 purposes?"
17 Votes shall be recorded as Yes or No. If a majority of the
18 electors voting on the proposition vote in favor of it, the
19 county may impose the tax.
20 This additional tax may not be imposed on the sales of
21 food for human consumption that is to be consumed off the
22 premises where it is sold (other than alcoholic beverages,
23 soft drinks, and food which has been prepared for immediate
24 consumption) and prescription and non-prescription medicines,
25 drugs, medical appliances and insulin, urine testing
26 materials, syringes, and needles used by diabetics. The tax
27 imposed by a county under this Section and all civil
28 penalties that may be assessed as an incident of the tax
29 shall be collected and enforced by the Illinois Department of
30 Revenue. The certificate of registration that is issued by
31 the Department to a retailer under the Retailers' Occupation
32 Tax Act shall permit the retailer to engage in a business
33 that is taxable without registering separately with the
34 Department under an ordinance or resolution under this
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1 Section. The Department has full power to administer and
2 enforce this Section, to collect all taxes and penalties due
3 under this Section, to dispose of taxes and penalties so
4 collected in the manner provided in this Section, and to
5 determine all rights to credit memoranda arising on account
6 of the erroneous payment of a tax or penalty under this
7 Section. In the administration of and compliance with this
8 Section, the Department and persons who are subject to this
9 Section shall (i) have the same rights, remedies, privileges,
10 immunities, powers, and duties, (ii) be subject to the same
11 conditions, restrictions, limitations, penalties, and
12 definitions of terms, and (iii) employ the same modes of
13 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
14 1f, 1i, 1j, 2, 2-10 (in respect to all provisions contained
15 in those Sections other than the State rate of tax), 2-40,
16 2a, 2b, 2c, 3 (except provisions relating to transaction
17 returns and quarter monthly payments), 4, 5, 5a, 5b, 5c, 5d,
18 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10,
19 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act and
20 Section 3-7 of the Uniform Penalty and Interest Act as if
21 those provisions were set forth in this Section.
22 Persons subject to any tax imposed under the authority
23 granted in this Section may reimburse themselves for their
24 sellers' tax liability by separately stating the tax as an
25 additional charge, which charge may be stated in combination,
26 in a single amount, with State tax which sellers are required
27 to collect under the Use Tax Act, pursuant to such bracketed
28 schedules as the Department may prescribe.
29 Whenever the Department determines that a refund should
30 be made under this Section to a claimant instead of issuing a
31 credit memorandum, the Department shall notify the State
32 Comptroller, who shall cause the order to be drawn for the
33 amount specified and to the person named in the notification
34 from the Department. The refund shall be paid by the State
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1 Treasurer out of the County Public Safety Retailers'
2 Occupation Tax Fund.
3 (b) If a tax has been imposed under subsection (a), a
4 service occupation tax shall also be imposed at the same rate
5 upon all persons engaged, in the county, in the business of
6 making sales of service, who, as an incident to making those
7 sales of service, transfer tangible personal property within
8 the county as an incident to a sale of service. This tax may
9 not be imposed on sales of food for human consumption that is
10 to be consumed off the premises where it is sold (other than
11 alcoholic beverages, soft drinks, and food prepared for
12 immediate consumption) and prescription and non-prescription
13 medicines, drugs, medical appliances and insulin, urine
14 testing materials, syringes, and needles used by diabetics.
15 The tax imposed under this subsection and all civil penalties
16 that may be assessed as an incident thereof shall be
17 collected and enforced by the Department of Revenue. The
18 Department has full power to administer and enforce this
19 subsection; to collect all taxes and penalties due hereunder;
20 to dispose of taxes and penalties so collected in the manner
21 hereinafter provided; and to determine all rights to credit
22 memoranda arising on account of the erroneous payment of tax
23 or penalty hereunder. In the administration of, and
24 compliance with this subsection, the Department and persons
25 who are subject to this paragraph shall (i) have the same
26 rights, remedies, privileges, immunities, powers, and duties,
27 (ii) be subject to the same conditions, restrictions,
28 limitations, penalties, exclusions, exemptions, and
29 definitions of terms, and (iii) employ the same modes of
30 procedure as are prescribed in Sections 1a-1, 2 (except that
31 the reference to State in the definition of supplier
32 maintaining a place of business in this State shall mean the
33 county), 2a, 3 through 3-50 (in respect to all provisions
34 therein other than the State rate of tax), 4 (except that the
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1 reference to the State shall be to the county), 5, 7, 8
2 (except that the jurisdiction to which the tax shall be a
3 debt to the extent indicated in that Section 8 shall be the
4 county), 9 (except as to the disposition of taxes and
5 penalties collected, and except that the returned merchandise
6 credit for this tax may not be taken against any State tax),
7 10, 11, 12 (except the reference therein to Section 2b of the
8 Retailers' Occupation Tax Act), 13 (except that any reference
9 to the State shall mean the county), the first paragraph of
10 Section 15, 16, 17, 18, 19 and 20 of the Service Occupation
11 Tax Act and Section 3-7 of the Uniform Penalty and Interest
12 Act, as fully as if those provisions were set forth herein.
13 Persons subject to any tax imposed under the authority
14 granted in this subsection may reimburse themselves for their
15 serviceman's tax liability by separately stating the tax as
16 an additional charge, which charge may be stated in
17 combination, in a single amount, with State tax that
18 servicemen are authorized to collect under the Service Use
19 Tax Act, in accordance with such bracket schedules as the
20 Department may prescribe.
21 Whenever the Department determines that a refund should
22 be made under this subsection to a claimant instead of
23 issuing a credit memorandum, the Department shall notify the
24 State Comptroller, who shall cause the warrant to be drawn
25 for the amount specified, and to the person named, in the
26 notification from the Department. The refund shall be paid
27 by the State Treasurer out of the County Public Safety
28 Retailers' Occupation Fund.
29 Nothing in this subsection shall be construed to
30 authorize the county to impose a tax upon the privilege of
31 engaging in any business which under the Constitution of the
32 United States may not be made the subject of taxation by the
33 State.
34 (c) The Department shall immediately pay over to the
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1 State Treasurer, Ex Officio, as trustee, all taxes and
2 penalties collected under this Section to be deposited into
3 the County Public Safety Retailers' Occupation Tax Fund,
4 which is created in the State treasury. On or before the
5 25th day of each calendar month, the Department shall prepare
6 and certify to the Comptroller the disbursement of stated
7 sums of money to the counties from which retailers have paid
8 taxes or penalties to the Department during the second
9 preceding calendar month. The amount to be paid to each
10 county shall be the amount (not including credit memoranda)
11 collected under this Section during the second preceding
12 calendar month by the Department plus an amount the
13 Department determines is necessary to offset any amounts that
14 were erroneously paid to a different taxing body, and not
15 including (i) an amount equal to the amount of refunds made
16 during the second preceding calendar month by the Department
17 on behalf of the county and (ii) any amount that the
18 Department determines is necessary to offset any amounts that
19 were payable to a different taxing body but were erroneously
20 paid to the county. Within 10 days after receipt by the
21 Comptroller of the disbursement certification to the counties
22 provided for in this Section to be given to the Comptroller
23 by the Department, the Comptroller shall cause the orders to
24 be drawn for the respective amounts in accordance with
25 directions contained in the certification.
26 In addition to the disbursement required by the preceding
27 paragraph, an allocation shall be made in March of each year
28 to each county that received more than $500,000 in
29 disbursements under the preceding paragraph in the preceding
30 calendar year. The allocation shall be in an amount equal to
31 the average monthly distribution made to each such county
32 under the preceding paragraph during the preceding calendar
33 year (excluding the 2 months of highest receipts). The
34 distribution made in March of each year subsequent to the
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1 year in which an allocation was made pursuant to this
2 paragraph and the preceding paragraph shall be reduced by the
3 amount allocated and disbursed under this paragraph in the
4 preceding calendar year. The Department shall prepare and
5 certify to the Comptroller for disbursement the allocations
6 made in accordance with this paragraph.
7 (d) For the purpose of determining the local
8 governmental unit whose tax is applicable, a retail sale by a
9 producer of coal or another mineral mined in Illinois is a
10 sale at retail at the place where the coal or other mineral
11 mined in Illinois is extracted from the earth. This
12 paragraph does not apply to coal or another mineral when it
13 is delivered or shipped by the seller to the purchaser at a
14 point outside Illinois so that the sale is exempt under the
15 United States Constitution as a sale in interstate or foreign
16 commerce. For purposes of determining the local governmental
17 unit whose tax is applicable under Section 2-5(32) of the
18 Retailers' Occupation Tax Act, a retail sale by a lessor is a
19 sale at retail at the place where leased tangible personal
20 property is located.
21 (e) Nothing in this Section shall be construed to
22 authorize a county to impose a tax upon the privilege of
23 engaging in any business that under the Constitution of the
24 United States may not be made the subject of taxation by this
25 State.
26 (e-5) If a county imposes a tax under this Section, the
27 county board may, by ordinance, discontinue or lower the rate
28 of the tax. If the county board lowers the tax rate or
29 discontinues the tax, a referendum must be held in accordance
30 with subsection (a) of this Section in order to increase the
31 rate of the tax or to reimpose the discontinued tax.
32 (f) The results of any election authorizing a
33 proposition to impose a tax under this Section or effecting a
34 change in the rate of tax, or any ordinance lowering the rate
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1 or discontinuing the tax, shall be certified by the county
2 clerk and filed with the Illinois Department of Revenue on or
3 before the first day of June. The Illinois Department of
4 Revenue shall then proceed to administer and enforce this
5 Section or to lower the rate or discontinue the tax, as the
6 case may be, as of the first day of January next following
7 the filing.
8 (g) When certifying the amount of a monthly disbursement
9 to a county under this Section, the Department shall increase
10 or decrease the amounts by an amount necessary to offset any
11 miscalculation of previous disbursements. The offset amount
12 shall be the amount erroneously disbursed within the previous
13 6 months from the time a miscalculation is discovered.
14 (h) This Section may be cited as the "Special County
15 Occupation Tax For Public Safety Law".
16 (i) For purposes of this Section, "public safety"
17 includes but is not limited to fire fighting, police,
18 medical, ambulance, or other emergency services.
19 (Source: P.A. 89-107, eff. 1-1-96; 89-718, eff. 3-7-97;
20 90-190, eff. 7-24-97; 90-267, eff. 7-30-97; revised 10-8-97.)
21 Section 20. The Illinois Municipal Code is amended by
22 changing Sections 8-11-1, 8-11-1.3, and 8-11-1.6 as follows:
23 (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
24 Sec. 8-11-1. The corporate authorities of a home rule
25 municipality may impose a tax upon all persons engaged in the
26 business of selling tangible personal property, other than an
27 item of tangible personal property titled or registered with
28 an agency of this State's government, at retail in the
29 municipality on the gross receipts from these sales made in
30 the course of such business. If imposed, the tax shall only
31 be imposed in 1/4% increments. On and after September 1,
32 1991, this additional tax may not be imposed on the sales of
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1 food for human consumption that is to be consumed off the
2 premises where it is sold (other than alcoholic beverages,
3 soft drinks and food that has been prepared for immediate
4 consumption) and prescription and nonprescription medicines,
5 drugs, medical appliances and insulin, urine testing
6 materials, syringes and needles used by diabetics. The tax
7 imposed by a home rule municipality under this Section and
8 all civil penalties that may be assessed as an incident of
9 the tax shall be collected and enforced by the State
10 Department of Revenue. The certificate of registration that
11 is issued by the Department to a retailer under the
12 Retailers' Occupation Tax Act shall permit the retailer to
13 engage in a business that is taxable under any ordinance or
14 resolution enacted pursuant to this Section without
15 registering separately with the Department under such
16 ordinance or resolution or under this Section. The
17 Department shall have full power to administer and enforce
18 this Section; to collect all taxes and penalties due
19 hereunder; to dispose of taxes and penalties so collected in
20 the manner hereinafter provided; and to determine all rights
21 to credit memoranda arising on account of the erroneous
22 payment of tax or penalty hereunder. In the administration
23 of, and compliance with, this Section the Department and
24 persons who are subject to this Section shall have the same
25 rights, remedies, privileges, immunities, powers and duties,
26 and be subject to the same conditions, restrictions,
27 limitations, penalties and definitions of terms, and employ
28 the same modes of procedure, as are prescribed in Sections 1,
29 1a, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all
30 provisions therein other than the State rate of tax), 2c, 3
31 (except as to the disposition of taxes and penalties
32 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
33 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
34 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
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1 Penalty and Interest Act, as fully as if those provisions
2 were set forth herein.
3 No tax may be imposed by a home rule municipality under
4 this Section unless the municipality also imposes a tax at
5 the same rate under Section 8-11-5 of this Act.
6 Persons subject to any tax imposed under the authority
7 granted in this Section may reimburse themselves for their
8 seller's tax liability hereunder by separately stating that
9 tax as an additional charge, which charge may be stated in
10 combination, in a single amount, with State tax which sellers
11 are required to collect under the Use Tax Act, pursuant to
12 such bracket schedules as the Department may prescribe.
13 Whenever the Department determines that a refund should
14 be made under this Section to a claimant instead of issuing a
15 credit memorandum, the Department shall notify the State
16 Comptroller, who shall cause the order to be drawn for the
17 amount specified and to the person named in the notification
18 from the Department. The refund shall be paid by the State
19 Treasurer out of the home rule municipal retailers'
20 occupation tax fund.
21 The Department shall immediately pay over to the State
22 Treasurer, ex officio, as trustee, all taxes and penalties
23 collected hereunder. On or before the 25th day of each
24 calendar month, the Department shall prepare and certify to
25 the Comptroller the disbursement of stated sums of money to
26 named municipalities, the municipalities to be those from
27 which retailers have paid taxes or penalties hereunder to the
28 Department during the second preceding calendar month. The
29 amount to be paid to each municipality shall be the amount
30 (not including credit memoranda) collected hereunder during
31 the second preceding calendar month by the Department plus an
32 amount the Department determines is necessary to offset any
33 amounts that were erroneously paid to a different taxing
34 body, and not including an amount equal to the amount of
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1 refunds made during the second preceding calendar month by
2 the Department on behalf of such municipality, and not
3 including any amount that the Department determines is
4 necessary to offset any amounts that were payable to a
5 different taxing body but were erroneously paid to the
6 municipality. Within 10 days after receipt by the Comptroller
7 of the disbursement certification to the municipalities
8 provided for in this Section to be given to the Comptroller
9 by the Department, the Comptroller shall cause the orders to
10 be drawn for the respective amounts in accordance with the
11 directions contained in the certification.
12 In addition to the disbursement required by the preceding
13 paragraph and in order to mitigate delays caused by
14 distribution procedures, an allocation shall, if requested,
15 be made within 10 days after January 14, 1991, and in
16 November of 1991 and each year thereafter, to each
17 municipality that received more than $500,000 during the
18 preceding fiscal year, (July 1 through June 30) whether
19 collected by the municipality or disbursed by the Department
20 as required by this Section. Within 10 days after January 14,
21 1991, participating municipalities shall notify the
22 Department in writing of their intent to participate. In
23 addition, for the initial distribution, participating
24 municipalities shall certify to the Department the amounts
25 collected by the municipality for each month under its home
26 rule occupation and service occupation tax during the period
27 July 1, 1989 through June 30, 1990. The allocation within 10
28 days after January 14, 1991, shall be in an amount equal to
29 the monthly average of these amounts, excluding the 2 months
30 of highest receipts. The monthly average for the period of
31 July 1, 1990 through June 30, 1991 will be determined as
32 follows: the amounts collected by the municipality under its
33 home rule occupation and service occupation tax during the
34 period of July 1, 1990 through September 30, 1990, plus
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1 amounts collected by the Department and paid to such
2 municipality through June 30, 1991, excluding the 2 months of
3 highest receipts. The monthly average for each subsequent
4 period of July 1 through June 30 shall be an amount equal to
5 the monthly distribution made to each such municipality under
6 the preceding paragraph during this period, excluding the 2
7 months of highest receipts. The distribution made in
8 November 1991 and each year thereafter under this paragraph
9 and the preceding paragraph shall be reduced by the amount
10 allocated and disbursed under this paragraph in the preceding
11 period of July 1 through June 30. The Department shall
12 prepare and certify to the Comptroller for disbursement the
13 allocations made in accordance with this paragraph.
14 For the purpose of determining the local governmental
15 unit whose tax is applicable, a retail sale by a producer of
16 coal or other mineral mined in Illinois is a sale at retail
17 at the place where the coal or other mineral mined in
18 Illinois is extracted from the earth. This paragraph does
19 not apply to coal or other mineral when it is delivered or
20 shipped by the seller to the purchaser at a point outside
21 Illinois so that the sale is exempt under the United States
22 Constitution as a sale in interstate or foreign commerce. For
23 purposes of determining the local governmental unit whose tax
24 is applicable under Section 2-5(32) of the Retailers'
25 Occupation Tax Act, a retail sale by a lessor is a sale at
26 retail at the place where leased tangible personal property
27 is located.
28 Nothing in this Section shall be construed to authorize a
29 municipality to impose a tax upon the privilege of engaging
30 in any business which under the Constitution of the United
31 States may not be made the subject of taxation by this State.
32 An ordinance or resolution imposing or discontinuing a
33 tax hereunder or effecting a change in the rate thereof shall
34 be adopted and a certified copy thereof filed with the
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1 Department on or before the first day of June, whereupon the
2 Department shall proceed to administer and enforce this
3 Section as of the first day of September next following the
4 adoption and filing. Beginning January 1, 1992, an ordinance
5 or resolution imposing or discontinuing the tax hereunder or
6 effecting a change in the rate thereof shall be adopted and a
7 certified copy thereof filed with the Department on or before
8 the first day of July, whereupon the Department shall proceed
9 to administer and enforce this Section as of the first day of
10 October next following such adoption and filing. Beginning
11 January 1, 1993, an ordinance or resolution imposing or
12 discontinuing the tax hereunder or effecting a change in the
13 rate thereof shall be adopted and a certified copy thereof
14 filed with the Department on or before the first day of
15 October, whereupon the Department shall proceed to administer
16 and enforce this Section as of the first day of January next
17 following the adoption and filing. However, a municipality
18 located in a county with a population in excess of 3,000,000
19 that elected to become a home rule unit at the general
20 primary election in 1994 may adopt an ordinance or resolution
21 imposing the tax under this Section and file a certified copy
22 of the ordinance or resolution with the Department on or
23 before July 1, 1994. The Department shall then proceed to
24 administer and enforce this Section as of October 1, 1994.
25 When certifying the amount of a monthly disbursement to a
26 municipality under this Section, the Department shall
27 increase or decrease the amount by an amount necessary to
28 offset any misallocation of previous disbursements. The
29 offset amount shall be the amount erroneously disbursed
30 within the previous 6 months from the time a misallocation is
31 discovered.
32 Any unobligated balance remaining in the Municipal
33 Retailers' Occupation Tax Fund on December 31, 1989, which
34 fund was abolished by Public Act 85-1135, and all receipts of
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1 municipal tax as a result of audits of liability periods
2 prior to January 1, 1990, shall be paid into the Local
3 Government Tax Fund for distribution as provided by this
4 Section prior to the enactment of Public Act 85-1135. All
5 receipts of municipal tax as a result of an assessment not
6 arising from an audit, for liability periods prior to January
7 1, 1990, shall be paid into the Local Government Tax Fund for
8 distribution before July 1, 1990, as provided by this Section
9 prior to the enactment of Public Act 85-1135; and on and
10 after July 1, 1990, all such receipts shall be distributed as
11 provided in Section 6z-18 of the State Finance Act.
12 As used in this Section, "municipal" and "municipality"
13 means a city, village or incorporated town, including an
14 incorporated town that has superseded a civil township.
15 This Section shall be known and may be cited as the Home
16 Rule Municipal Retailers' Occupation Tax Act.
17 (Source: P.A. 87-205; 87-435; 87-895; 88-603, eff. 9-1-94.)
18 (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
19 Sec. 8-11-1.3. The corporate authorities of a non-home
20 rule municipality with more than 130,000 but less than
21 2,000,000 inhabitants may impose a tax upon all persons
22 engaged in the business of selling tangible personal
23 property, other than on an item of tangible personal property
24 which is titled and registered by an agency of this State's
25 Government, at retail in the municipality at the rate of 1/2
26 of 1% for expenditure on public infrastructure as defined in
27 Section 8-11-1.2 if approved by referendum as provided in
28 Section 8-11-1.1, of the gross receipts from such sales made
29 in the course of such business. The tax imposed by a
30 municipality pursuant to this Section and all civil penalties
31 that may be assessed as an incident thereof shall be
32 collected and enforced by the State Department of Revenue.
33 The certificate of registration which is issued by the
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1 Department to a retailer under the Retailers' Occupation Tax
2 Act shall permit such retailer to engage in a business which
3 is taxable under any ordinance or resolution enacted pursuant
4 to this Section without registering separately with the
5 Department under such ordinance or resolution or under this
6 Section. The Department shall have full power to administer
7 and enforce this Section; to collect all taxes and penalties
8 due hereunder; to dispose of taxes and penalties so collected
9 in the manner hereinafter provided, and to determine all
10 rights to credit memoranda, arising on account of the
11 erroneous payment of tax or penalty hereunder. In the
12 administration of, and compliance with, this Section, the
13 Department and persons who are subject to this Section shall
14 have the same rights, remedies, privileges, immunities,
15 powers and duties, and be subject to the same conditions,
16 restrictions, limitations, penalties and definitions of
17 terms, and employ the same modes of procedure, as are
18 prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
19 through 2-65 (in respect to all provisions therein other than
20 the State rate of tax), 2c, 3 (except as to the disposition
21 of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e,
22 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
23 12 and 13 of the Retailers' Occupation Tax Act and Section
24 3-7 of the Uniform Penalty and Interest Act as fully as if
25 those provisions were set forth herein.
26 Persons subject to any tax imposed pursuant to the
27 authority granted in this Section may reimburse themselves
28 for their seller's tax liability hereunder by separately
29 stating such tax as an additional charge, which charge may be
30 stated in combination, in a single amount, with State tax
31 which sellers are required to collect under the Use Tax Act,
32 pursuant to such bracket schedules as the Department may
33 prescribe.
34 Whenever the Department determines that a refund should
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1 be made under this Section to a claimant instead of issuing a
2 credit memorandum, the Department shall notify the State
3 Comptroller, who shall cause the order to be drawn for the
4 amount specified, and to the person named, in such
5 notification from the Department. Such refund shall be paid
6 by the State Treasurer out of the non-home rule municipal
7 retailers' occupation tax fund.
8 The Department shall forthwith pay over to the State
9 Treasurer, ex officio, as trustee, all taxes and penalties
10 collected hereunder. On or before the 25th day of each
11 calendar month, the Department shall prepare and certify to
12 the Comptroller the disbursement of stated sums of money to
13 named municipalities, the municipalities to be those from
14 which retailers have paid taxes or penalties hereunder to the
15 Department during the second preceding calendar month. The
16 amount to be paid to each municipality shall be the amount
17 (not including credit memoranda) collected hereunder during
18 the second preceding calendar month by the Department plus an
19 amount the Department determines is necessary to offset any
20 amounts which were erroneously paid to a different taxing
21 body, and not including an amount equal to the amount of
22 refunds made during the second preceding calendar month by
23 the Department on behalf of such municipality, and not
24 including any amount which the Department determines is
25 necessary to offset any amounts which were payable to a
26 different taxing body but were erroneously paid to the
27 municipality. Within 10 days after receipt, by the
28 Comptroller, of the disbursement certification to the
29 municipalities, provided for in this Section to be given to
30 the Comptroller by the Department, the Comptroller shall
31 cause the orders to be drawn for the respective amounts in
32 accordance with the directions contained in such
33 certification.
34 For the purpose of determining the local governmental
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1 unit whose tax is applicable, a retail sale, by a producer of
2 coal or other mineral mined in Illinois, is a sale at retail
3 at the place where the coal or other mineral mined in
4 Illinois is extracted from the earth. This paragraph does
5 not apply to coal or other mineral when it is delivered or
6 shipped by the seller to the purchaser at a point outside
7 Illinois so that the sale is exempt under the Federal
8 Constitution as a sale in interstate or foreign commerce. For
9 purposes of determining the local governmental unit whose tax
10 is applicable under Section 2-5(32) of the Retailers'
11 Occupation Tax Act, a retail sale by a lessor is a sale at
12 retail at the place where leased tangible personal property
13 is located.
14 Nothing in this Section shall be construed to authorize a
15 municipality to impose a tax upon the privilege of engaging
16 in any business which under the constitution of the United
17 States may not be made the subject of taxation by this State.
18 When certifying the amount of a monthly disbursement to a
19 municipality under this Section, the Department shall
20 increase or decrease such amount by an amount necessary to
21 offset any misallocation of previous disbursements. The
22 offset amount shall be the amount erroneously disbursed
23 within the previous 6 months from the time a misallocation is
24 discovered.
25 As used in this Section, "municipal" and "municipality"
26 means a city, village or incorporated town, including an
27 incorporated town which has superseded a civil township.
28 This Section shall be known and may be cited as the
29 "Non-Home Rule Municipal Retailers' Occupation Tax Act".
30 (Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
31 (65 ILCS 5/8-11-1.6)
32 Sec. 8-11-1.6. Non-home rule municipal retailers
33 occupation tax; municipalities between 20,000 and 25,000. The
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1 corporate authorities of a non-home rule municipality with a
2 population of more than 20,000 but less than 25,000 that has,
3 prior to January 1, 1987, established a Redevelopment Project
4 Area that has been certified as a State Sales Tax Boundary
5 and has issued bonds or otherwise incurred indebtedness to
6 pay for costs in excess of $5,000,000, which is secured in
7 part by a tax increment allocation fund, in accordance with
8 the provisions of Division 11-74.4 of this Code may, by
9 passage of an ordinance, impose a tax upon all persons
10 engaged in the business of selling tangible personal
11 property, other than on an item of tangible personal property
12 that is titled and registered by an agency of this State's
13 Government, at retail in the municipality. This tax may not
14 be imposed on the sales of food for human consumption that is
15 to be consumed off the premises where it is sold (other than
16 alcoholic beverages, soft drinks, and food that has been
17 prepared for immediate consumption) and prescription and
18 nonprescription medicines, drugs, medical appliances and
19 insulin, urine testing materials, syringes, and needles used
20 by diabetics. If imposed, the tax shall only be imposed in
21 .25% increments of the gross receipts from such sales made in
22 the course of business. Any tax imposed by a municipality
23 under this Sec. and all civil penalties that may be assessed
24 as an incident thereof shall be collected and enforced by the
25 State Department of Revenue. An ordinance imposing a tax
26 hereunder or effecting a change in the rate thereof shall be
27 adopted and a certified copy thereof filed with the
28 Department on or before the first day of October, whereupon
29 the Department shall proceed to administer and enforce this
30 Section as of the first day of January next following such
31 adoption and filing. The certificate of registration that is
32 issued by the Department to a retailer under the Retailers'
33 Occupation Tax Act shall permit the retailer to engage in a
34 business that is taxable under any ordinance or resolution
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1 enacted under this Section without registering separately
2 with the Department under the ordinance or resolution or
3 under this Section. The Department shall have full power to
4 administer and enforce this Section, to collect all taxes and
5 penalties due hereunder, to dispose of taxes and penalties so
6 collected in the manner hereinafter provided, and to
7 determine all rights to credit memoranda, arising on account
8 of the erroneous payment of tax or penalty hereunder. In the
9 administration of, and compliance with this Section, the
10 Department and persons who are subject to this Section shall
11 have the same rights, remedies, privileges, immunities,
12 powers, and duties, and be subject to the same conditions,
13 restrictions, limitations, penalties, and definitions of
14 terms, and employ the same modes of procedure, as are
15 prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
16 through 2-65 (in respect to all provisions therein other than
17 the State rate of tax), 2c, 3 (except as to the disposition
18 of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e,
19 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
20 12 and 13 of the Retailers' Occupation Tax Act and Section
21 3-7 of the Uniform Penalty and Interest Act as fully as if
22 those provisions were set forth herein.
23 A tax may not be imposed by a municipality under this
24 Section unless the municipality also imposes a tax at the
25 same rate under Section 8-11-1.7 of this Act.
26 Persons subject to any tax imposed under the authority
27 granted in this Section, may reimburse themselves for their
28 seller's tax liability hereunder by separately stating the
29 tax as an additional charge, which charge may be stated in
30 combination, in a single amount, with State tax which sellers
31 are required to collect under the Use Tax Act, pursuant to
32 such bracket schedules as the Department may prescribe.
33 Whenever the Department determines that a refund should
34 be made under this Section to a claimant, instead of issuing
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1 a credit memorandum, the Department shall notify the State
2 Comptroller, who shall cause the order to be drawn for the
3 amount specified, and to the person named in the notification
4 from the Department. The refund shall be paid by the State
5 Treasurer out of the Non-Home Rule Municipal Retailers'
6 Occupation Tax Fund, which is hereby created.
7 The Department shall forthwith pay over to the State
8 Treasurer, ex officio, as trustee, all taxes and penalties
9 collected hereunder. On or before the 25th day of each
10 calendar month, the Department shall prepare and certify to
11 the Comptroller the disbursement of stated sums of money to
12 named municipalities, the municipalities to be those from
13 which retailers have paid taxes or penalties hereunder to the
14 Department during the second preceding calendar month. The
15 amount to be paid to each municipality shall be the amount
16 (not including credit memoranda) collected hereunder during
17 the second preceding calendar month by the Department plus an
18 amount the Department determines is necessary to offset any
19 amounts that were erroneously paid to a different taxing
20 body, and not including an amount equal to the amount of
21 refunds made during the second preceding calendar month by
22 the Department on behalf of the municipality, and not
23 including any amount that the Department determines is
24 necessary to offset any amounts that were payable to a
25 different taxing body but were erroneously paid to the
26 municipality. Within 10 days after receipt by the
27 Comptroller of the disbursement certification to the
28 municipalities provided for in this Section to be given to
29 the Comptroller by the Department, the Comptroller shall
30 cause the orders to be drawn for the respective amounts in
31 accordance with the directions contained in the
32 certification.
33 For the purpose of determining the local governmental
34 unit whose tax is applicable, a retail sale by a producer of
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1 coal or other mineral mined in Illinois is a sale at retail
2 at the place where the coal or other mineral mined in
3 Illinois is extracted from the earth. This paragraph does
4 not apply to coal or other mineral when it is delivered or
5 shipped by the seller to the purchaser at a point outside
6 Illinois so that the sale is exempt under the federal
7 Constitution as a sale in interstate or foreign commerce. For
8 purposes of determining the local governmental unit whose tax
9 is applicable under Section 2-5(32) of the Retailers'
10 Occupation Tax Act, a retail sale by a lessor is a sale at
11 retail at the place where leased tangible personal property
12 is located.
13 Nothing in this Section shall be construed to authorize a
14 municipality to impose a tax upon the privilege of engaging
15 in any business which under the constitution of the United
16 States may not be made the subject of taxation by this State.
17 When certifying the amount of a monthly disbursement to a
18 municipality under this Section, the Department shall
19 increase or decrease the amount by an amount necessary to
20 offset any misallocation of previous disbursements. The
21 offset amount shall be the amount erroneously disbursed
22 within the previous 6 months from the time a misallocation is
23 discovered.
24 As used in this Section, "municipal" and "municipality"
25 means a city, village, or incorporated town, including an
26 incorporated town that has superseded a civil township.
27 (Source: P.A. 88-334; 89-399, eff. 8-20-95.)
28 Section 99. Effective date. This Act takes effect upon
29 becoming law.".