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90_HB1067
55 ILCS 5/5-1008.5 new
Amends the Counties Code. Allows the Saline County
Board, upon referendum approval, to impose a retailers'
occupation tax, a service occupation tax, and a use tax at a
rate of 1/4 of 1% for the sole purpose of providing financial
incentives to future manufacturing industry, expanding
existing manufacturing firms, or rehabilitating manufacturing
industries adversely affected by existing and future federal,
State, or local laws, administrative directives, or other
orders issued that are detrimental to the manufacturing
industry in the county and communities located within the
county. Effective immediately.
LRB9004297KDks
LRB9004297KDks
1 AN ACT in relation to taxes, amending named Acts.
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 adding
5 Section 5-1008.5 as follows:
6 (55 ILCS 5/5-1008.5 new)
7 Sec. 5-1008.5. Use and occupation taxes.
8 (a) The Saline County Board may adopt a resolution that
9 authorizes a referendum on the question of whether the county
10 shall be authorized to impose a retailers' occupation tax, a
11 service occupation tax, and a use tax at a rate of 1/4 of 1%
12 to provide financial incentives to future manufacturing
13 industry, expand existing manufacturing firms, or
14 rehabilitate manufacturing industries adversely affected by
15 existing and future federal, State, or local laws,
16 administrative directives, or other orders issued that are
17 detrimental to the manufacturing industry of Saline county
18 and communities located within the county. The county board
19 shall certify the question to the proper election authorities
20 who shall submit the question to the voters of the county at
21 the next regularly scheduled election in accordance with the
22 general election law. The question shall be in substantially
23 the following form:
24 Shall Saline County be authorized to impose a
25 retailers' occupation tax, a service occupation tax, and
26 a use tax at the rate of 1/4 of 1% for the sole purpose
27 of providing financial incentives for future
28 manufacturing industry, expanding existing manufacturing
29 firms, or rehabilitating manufacturing industries
30 adversely affected by existing and future federal, State,
31 or local laws, administrative directives, or other orders
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1 issued that are detrimental to the manufacturing industry
2 in the county?
3 Votes shall be recorded as "yes" or "no". If a majority
4 of all votes cast on the proposition are in favor of the
5 proposition, the county is authorized to impose the tax.
6 (b) The county shall impose the retailers' occupation
7 tax upon all persons engaged in the business of selling
8 tangible personal property at retail in the county, at the
9 rate approved by referendum, on the gross receipts from the
10 sales made in the course of those businesses within the
11 county. This additional tax may not be imposed on the sale of
12 food for human consumption that is to be consumed off the
13 premises where it is sold (other than alcoholic beverages,
14 soft drinks, and food that has been prepared for immediate
15 consumption) and prescription and non-prescription medicines,
16 drugs, medical appliances and insulin, urine testing
17 materials, syringes, and needles used by diabetics. The tax
18 imposed under this Section and all civil penalties that may
19 be assessed as an incident of the tax shall be collected and
20 enforced by the Department of Revenue. The Department has
21 full power to administer and enforce this Section; to collect
22 all taxes and penalties so collected in the manner provided
23 in this Section; and to determine all rights to credit
24 memoranda arising on account of the erroneous payment of tax
25 or penalty under this Section. In the administration of, and
26 compliance with, this Section, the Department and persons who
27 are subject to this Section shall (i) have the same rights,
28 remedies, privileges, immunities, powers and duties, (ii) be
29 subject to the same conditions, restrictions, limitations,
30 penalties, exclusions, exemptions, and definitions of terms,
31 and (iii) employ the same modes of procedure as are
32 prescribed in Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j,
33 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
34 other than the State rate of tax), 2-15 through 2-70, 2a, 2b,
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1 2c, 3 (except as to the disposition of taxes and penalties
2 collected and provisions related to quarter monthly
3 payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l,
4 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
5 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
6 Penalty and Interest Act, as fully as if those provisions
7 were set forth in this subsection.
8 Persons subject to any tax imposed under this subsection
9 may reimburse themselves for their seller's tax liability by
10 separately stating the tax as an additional charge, which
11 charge may be stated in combination, in a single amount, with
12 State taxes that sellers are required to collect, in
13 accordance with bracket schedules prescribed by the
14 Department.
15 Whenever the Department determines that a refund should
16 be made under this subsection to a claimant instead of
17 issuing a credit memorandum, the Department shall notify the
18 State Comptroller, who shall cause the warrant to be drawn
19 for the amount specified, and to the person named, in the
20 notification from the Department. The refund shall be paid
21 by the State Treasurer out of the tax fund referenced under
22 paragraph (g) of this Section.
23 If a tax is imposed under this subsection (b), a tax
24 shall also be imposed at the same rate under subsections (c)
25 and (d) of this Section.
26 For the purpose of determining whether a tax authorized
27 under this Section is applicable, a retail sale, by a
28 producer of coal or another mineral mined in Illinois, is a
29 sale at retail at the place where the coal or other mineral
30 mined in Illinois is extracted from the earth. This
31 paragraph does not apply to coal or another mineral when it
32 is delivered or shipped by the seller to the purchaser at a
33 point outside Illinois so that the sale is exempt under the
34 federal Constitution as a sale in interstate or foreign
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1 commerce.
2 Nothing in this Section shall be construed to authorize
3 the county to impose a tax upon the privilege of engaging in
4 any business that under the Constitution of the United States
5 may not be made the subject of taxation by this State.
6 (c) If a tax has been imposed under subsection (b), a
7 service occupation tax shall also be imposed at the same rate
8 upon all persons engaged, in the county, in the business of
9 making sales of service, who, as an incident to making those
10 sales of service, transfer tangible personal property within
11 the county as an incident to a sale of service. This
12 additional tax may not be imposed on the sale of food for
13 human consumption that is to be consumed off the premises
14 where it is sold (other than alcoholic beverages, soft
15 drinks, and food that has been prepared for immediate
16 consumption) and prescription and non-prescription medicines,
17 drugs, medical appliances and insulin, urine testing
18 materials, syringes, and needless used by diabetics. The tax
19 imposed under this subsection and all civil penalties that
20 may be assessed as an incident of the tax shall be collected
21 and enforced by the Department of Revenue. The Department has
22 full power to administer and enforce this paragraph; to
23 collect all taxes and penalties due under this Section; to
24 dispose of taxes and penalties so collected in the manner
25 provided in this Section; and to determine all rights to
26 credit memoranda arising on account of the erroneous payment
27 of tax or penalty under this Section. In the administration
28 of, and compliance with this paragraph, the Department and
29 persons who are subject to this paragraph shall (i) have the
30 same rights, remedies, privileges, immunities, powers, and
31 duties, (ii) be subject to the same conditions, restrictions,
32 limitations, penalties, exclusions, exemptions, and
33 definitions of terms, and (iii) employ the same modes of
34 procedure as are prescribed in Sections 2 (except that the
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1 reference to State in the definition of supplier maintaining
2 a place of business in this State shall mean the county), 2a,
3 2b, 3 through 3-55 (in respect to all provisions other than
4 the State rate of tax), 4 (except that the reference to the
5 State shall be to the county), 5, 7, 8 (except that the
6 jurisdiction to which the tax shall be a debt to the extent
7 indicated in that Section 8 shall be the county), 9 (except
8 as to the disposition of taxes and penalties collected, and
9 except that the returned merchandise credit for this tax may
10 not be taken against any State tax), 11, 12 (except the
11 reference to Section 2b of the Retailers' Occupation Tax
12 Act), 13 (except that any reference to the State shall mean
13 the county), 15, 16, 17, 18, 19 and 20 of the Service
14 Occupation Tax Act and Section 3-7 of the Uniform Penalty and
15 Interest Act, as fully as if those provisions were set forth
16 in this subsection.
17 Persons subject to any tax imposed under the authority
18 granted in this subsection may reimburse themselves for their
19 serviceman's tax liability by separately stating the tax as
20 an additional charge, which charge may be stated in
21 combination, in a single amount, with State tax that
22 servicemen are authorized to collect under the Service Use
23 Tax Act, in accordance with bracket schedules prescribed by
24 the Department.
25 Whenever the Department determines that a refund should
26 be made under this subsection to a claimant instead of
27 issuing a credit memorandum, the Department shall notify the
28 State Comptroller, who shall cause the warrant to be drawn
29 for the amount specified, and to the person named, in the
30 notification from the Department. The refund shall be paid
31 by the State Treasurer out of the tax fund referenced under
32 paragraph (g) of this Section.
33 Nothing in this paragraph shall be construed to authorize
34 the county to impose a tax upon the privilege of engaging in
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1 any business that under the Constitution of the United States
2 may not be made the subject of taxation by the State.
3 (d) If a tax has been imposed under subsection (b), a
4 use tax shall also be imposed at the same rate upon the
5 privilege of using, in the county, any item of tangible
6 personal property that is purchased outside the county at
7 retail from a retailer, and that is titled or registered at a
8 location within the county with an agency of this State's
9 government. This additional tax may not be imposed on the
10 sale of food for human consumption that is to be consumed off
11 the premises where it is sold (other than alcoholic
12 beverages, soft drinks, and food that has been prepared for
13 immediate consumption) and prescription and non-prescription
14 medicines, drugs, medical appliances and insulin, urine
15 testing materials, syringes, and needless used by diabetics.
16 "Selling price" is defined as in the Use Tax Act. The tax
17 shall be collected from persons whose Illinois address for
18 titling or registration purposes is given as being in the
19 county. The tax shall be collected by the Department of
20 Revenue for the county. The tax must be paid to the State, or
21 an exemption determination must be obtained from the
22 Department of Revenue, before the title or certificate of
23 registration for the property may be issued. The tax or
24 proof of exemption may be transmitted to the Department by
25 way of the State agency with which, or the State officer with
26 whom, the tangible personal property must be titled or
27 registered if the Department and the State agency or State
28 officer determine that this procedure will expedite the
29 processing of applications for title or registration.
30 The Department has full power to administer and enforce
31 this paragraph; to collect all taxes, penalties, and interest
32 due under this Section; to dispose of taxes, penalties, and
33 interest so collected in the manner provided in this Section;
34 and to determine all rights to credit memoranda or refunds
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1 arising on account of the erroneous payment of tax, penalty,
2 or interest under this Section. In the administration of, and
3 compliance with, this subsection, the Department and persons
4 who are subject to this paragraph shall (i) have the same
5 rights, remedies, privileges, immunities, powers, and duties,
6 (ii) be subject to the same conditions, restrictions,
7 limitations, penalties, exclusions, exemptions, and
8 definitions of terms, and (iii) employ the same modes of
9 procedure as are prescribed in Sections 2 (except the
10 definition of "retailer maintaining a place of business in
11 this State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a,
12 4, 6, 7, 8 (except that the jurisdiction to which the tax
13 shall be a debt to the extent indicated in that Section 8
14 shall be the county), 9 (except provisions relating to
15 quarter monthly payments), 10, 11, 12, 12a, 12b, 13, 14, 15,
16 19, 20, 21, and 22 of the Use Tax Act and Section 3-7 of the
17 Uniform Penalty and Interest Act, that are not inconsistent
18 with this paragraph, as fully as if those provisions were set
19 forth in this subsection.
20 Whenever the Department determines that a refund should
21 be made under this subsection to a claimant instead of
22 issuing a credit memorandum, the Department shall notify the
23 State Comptroller, who shall cause the order to be drawn for
24 the amount specified, and to the person named, in the
25 notification from the Department. The refund shall be paid by
26 the State Treasurer out of the tax fund referenced under
27 paragraph (g) of this Section.
28 (e) A certificate of registration issued by the State
29 Department of Revenue to a retailer under the Retailers'
30 Occupation Tax Act or under the Service Occupation Tax Act
31 shall permit the registrant to engage in a business that is
32 taxed under the tax imposed under paragraphs (b), (c), or (d)
33 of this Section and no additional registration shall be
34 required. A certificate issued under the Use Tax Act or the
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1 Service Use Tax Act shall be applicable with regard to any
2 tax imposed under paragraph (c) of this Section.
3 (f) The results of any election authorizing a
4 proposition to impose a tax under this Section or effecting a
5 change in the rate of tax shall be certified by the proper
6 election authorities and filed with the Illinois Department
7 on or before the first day of April. In addition, an
8 ordinance imposing, discontinuing, or effecting a change in
9 the rate of tax under this Section shall be adopted and a
10 certified copy of the ordinance filed with the Department on
11 or before the first day of April. After proper receipt of
12 the certifications, the Department shall proceed to
13 administer and enforce this Section as of the first day of
14 July next following the adoption and filing.
15 (g) The Department of Revenue shall, upon collecting any
16 taxes and penalties as provided in this Section, pay the
17 taxes and penalties over to the State Treasurer as trustee
18 for the county. The taxes and penalties shall be held in a
19 trust fund outside the State Treasury. On or before the 25th
20 day of each calendar month, the Department of Revenue shall
21 prepare and certify to the Comptroller of the State of
22 Illinois the amount to be paid to the county, which shall be
23 the balance in the fund, less any amount determined by the
24 Department to be necessary for the payment of refunds. Within
25 10 days after receipt by the Comptroller of the certification
26 of the amount to be paid to the county, the Comptroller shall
27 cause an order to be drawn for payment for the amount in
28 accordance with the directions contained in the
29 certification. Amounts received from the tax imposed under
30 this Section shall be used only to provide financial
31 incentives to future manufacturing industry, expand existing
32 manufacturing firms, or rehabilitate manufacturing industries
33 adversely affected by existing and future federal, State, or
34 local laws, administrative directives, or other orders issued
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1 that are detrimental to the manufacturing industry.
2 (h) When certifying the amount of a monthly disbursement
3 to the county under this Section, the Department shall
4 increase or decrease the amounts by an amount necessary to
5 offset any miscalculation of previous disbursements. The
6 offset amount shall be the amount erroneously disbursed
7 within the previous 6 months from the time a miscalculation
8 is discovered.
9 (i) This Section may be cited as the Saline County Use
10 and Occupation Tax Law.
11 Section 99. Effective date. This Act takes effect upon
12 becoming law.