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90_SB0374
35 ILCS 105/3-5 from Ch. 120, par. 439.3-5
35 ILCS 120/2-5 from Ch. 120, par. 441-5
55 ILCS 5/5-1006 from Ch. 34, par. 5-1006
55 ILCS 5/5-1006.5
65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1
65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3
65 ILCS 5/8-11-1.6
Amends the Use Tax Act, the Retailers' Occupation Tax
Act, the Counties Code, and the Illinois Municipal Code.
Exempts qualified technological equipment as defined in
Section 168(c)(3)(B)(iv) of the Internal Revenue Code that
was purchased by a lessor who has elected to pay retailers'
occupation tax based on the lessor's gross receipts from the
lease of the equipment in this State to a lessee for his or
her use and not for the purpose of sublease. Provides that,
for purposes of determining the local governmental unit whose
tax is applicable, a retail sale by a lessor is a sale at
retail at the place where leased tangible personal property
is located. Effective immediately.
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LRB9002207DNmbB
1 AN ACT concerning occupation and use taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing
5 Section 3-5 as follows:
6 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
7 Sec. 3-5. Exemptions. Use of the following tangible
8 personal property is exempt from the tax imposed by this Act:
9 (1) Personal property purchased from a corporation,
10 society, association, foundation, institution, or
11 organization, other than a limited liability company, that is
12 organized and operated as a not-for-profit service enterprise
13 for the benefit of persons 65 years of age or older if the
14 personal property was not purchased by the enterprise for the
15 purpose of resale by the enterprise.
16 (2) Personal property purchased by a not-for-profit
17 Illinois county fair association for use in conducting,
18 operating, or promoting the county fair.
19 (3) Personal property purchased by a not-for-profit
20 music or dramatic arts organization that establishes, by
21 proof required by the Department by rule, that it has
22 received an exemption under Section 501(c)(3) of the Internal
23 Revenue Code and that is organized and operated for the
24 presentation of live public performances of musical or
25 theatrical works on a regular basis.
26 (4) Personal property purchased by a governmental body,
27 by a corporation, society, association, foundation, or
28 institution organized and operated exclusively for
29 charitable, religious, or educational purposes, or by a
30 not-for-profit corporation, society, association, foundation,
31 institution, or organization that has no compensated officers
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1 or employees and that is organized and operated primarily for
2 the recreation of persons 55 years of age or older. A limited
3 liability company may qualify for the exemption under this
4 paragraph only if the limited liability company is organized
5 and operated exclusively for educational purposes. On and
6 after July 1, 1987, however, no entity otherwise eligible for
7 this exemption shall make tax-free purchases unless it has an
8 active exemption identification number issued by the
9 Department.
10 (5) A passenger car that is a replacement vehicle to the
11 extent that the purchase price of the car is subject to the
12 Replacement Vehicle Tax.
13 (6) Graphic arts machinery and equipment, including
14 repair and replacement parts, both new and used, and
15 including that manufactured on special order, certified by
16 the purchaser to be used primarily for graphic arts
17 production, and including machinery and equipment purchased
18 for lease.
19 (7) Farm chemicals.
20 (8) Legal tender, currency, medallions, or gold or
21 silver coinage issued by the State of Illinois, the
22 government of the United States of America, or the government
23 of any foreign country, and bullion.
24 (9) Personal property purchased from a teacher-sponsored
25 student organization affiliated with an elementary or
26 secondary school located in Illinois.
27 (10) A motor vehicle of the first division, a motor
28 vehicle of the second division that is a self-contained motor
29 vehicle designed or permanently converted to provide living
30 quarters for recreational, camping, or travel use, with
31 direct walk through to the living quarters from the driver's
32 seat, or a motor vehicle of the second division that is of
33 the van configuration designed for the transportation of not
34 less than 7 nor more than 16 passengers, as defined in
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1 Section 1-146 of the Illinois Vehicle Code, that is used for
2 automobile renting, as defined in the Automobile Renting
3 Occupation and Use Tax Act.
4 (11) Farm machinery and equipment, both new and used,
5 including that manufactured on special order, certified by
6 the purchaser to be used primarily for production agriculture
7 or State or federal agricultural programs, including
8 individual replacement parts for the machinery and equipment,
9 and including machinery and equipment purchased for lease,
10 but excluding motor vehicles required to be registered under
11 the Illinois Vehicle Code.
12 (12) Fuel and petroleum products sold to or used by an
13 air common carrier, certified by the carrier to be used for
14 consumption, shipment, or storage in the conduct of its
15 business as an air common carrier, for a flight destined for
16 or returning from a location or locations outside the United
17 States without regard to previous or subsequent domestic
18 stopovers.
19 (13) Proceeds of mandatory service charges separately
20 stated on customers' bills for the purchase and consumption
21 of food and beverages purchased at retail from a retailer, to
22 the extent that the proceeds of the service charge are in
23 fact turned over as tips or as a substitute for tips to the
24 employees who participate directly in preparing, serving,
25 hosting or cleaning up the food or beverage function with
26 respect to which the service charge is imposed.
27 (14) Oil field exploration, drilling, and production
28 equipment, including (i) rigs and parts of rigs, rotary rigs,
29 cable tool rigs, and workover rigs, (ii) pipe and tubular
30 goods, including casing and drill strings, (iii) pumps and
31 pump-jack units, (iv) storage tanks and flow lines, (v) any
32 individual replacement part for oil field exploration,
33 drilling, and production equipment, and (vi) machinery and
34 equipment purchased for lease; but excluding motor vehicles
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1 required to be registered under the Illinois Vehicle Code.
2 (15) Photoprocessing machinery and equipment, including
3 repair and replacement parts, both new and used, including
4 that manufactured on special order, certified by the
5 purchaser to be used primarily for photoprocessing, and
6 including photoprocessing machinery and equipment purchased
7 for lease.
8 (16) Coal exploration, mining, offhighway hauling,
9 processing, maintenance, and reclamation equipment, including
10 replacement parts and equipment, and including equipment
11 purchased for lease, but excluding motor vehicles required to
12 be registered under the Illinois Vehicle Code.
13 (17) Distillation machinery and equipment, sold as a
14 unit or kit, assembled or installed by the retailer,
15 certified by the user to be used only for the production of
16 ethyl alcohol that will be used for consumption as motor fuel
17 or as a component of motor fuel for the personal use of the
18 user, and not subject to sale or resale.
19 (18) Manufacturing and assembling machinery and
20 equipment used primarily in the process of manufacturing or
21 assembling tangible personal property for wholesale or retail
22 sale or lease, whether that sale or lease is made directly by
23 the manufacturer or by some other person, whether the
24 materials used in the process are owned by the manufacturer
25 or some other person, or whether that sale or lease is made
26 apart from or as an incident to the seller's engaging in the
27 service occupation of producing machines, tools, dies, jigs,
28 patterns, gauges, or other similar items of no commercial
29 value on special order for a particular purchaser.
30 (19) Personal property delivered to a purchaser or
31 purchaser's donee inside Illinois when the purchase order for
32 that personal property was received by a florist located
33 outside Illinois who has a florist located inside Illinois
34 deliver the personal property.
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1 (20) Semen used for artificial insemination of livestock
2 for direct agricultural production.
3 (21) Horses, or interests in horses, registered with and
4 meeting the requirements of any of the Arabian Horse Club
5 Registry of America, Appaloosa Horse Club, American Quarter
6 Horse Association, United States Trotting Association, or
7 Jockey Club, as appropriate, used for purposes of breeding or
8 racing for prizes.
9 (22) Computers and communications equipment utilized for
10 any hospital purpose and equipment used in the diagnosis,
11 analysis, or treatment of hospital patients purchased by a
12 lessor who leases the equipment, under a lease of one year or
13 longer executed or in effect at the time the lessor would
14 otherwise be subject to the tax imposed by this Act, to a
15 hospital that has been issued an active tax exemption
16 identification number by the Department under Section 1g of
17 the Retailers' Occupation Tax Act. If the equipment is
18 leased in a manner that does not qualify for this exemption
19 or is used in any other non-exempt manner, the lessor shall
20 be liable for the tax imposed under this Act or the Service
21 Use Tax Act, as the case may be, based on the fair market
22 value of the property at the time the non-qualifying use
23 occurs. No lessor shall collect or attempt to collect an
24 amount (however designated) that purports to reimburse that
25 lessor for the tax imposed by this Act or the Service Use Tax
26 Act, as the case may be, if the tax has not been paid by the
27 lessor. If a lessor improperly collects any such amount from
28 the lessee, the lessee shall have a legal right to claim a
29 refund of that amount from the lessor. If, however, that
30 amount is not refunded to the lessee for any reason, the
31 lessor is liable to pay that amount to the Department.
32 (23) Personal property purchased by a lessor who leases
33 the property, under a lease of one year or longer executed
34 or in effect at the time the lessor would otherwise be
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1 subject to the tax imposed by this Act, to a governmental
2 body that has been issued an active sales tax exemption
3 identification number by the Department under Section 1g of
4 the Retailers' Occupation Tax Act. If the property is leased
5 in a manner that does not qualify for this exemption or used
6 in any other non-exempt manner, the lessor shall be liable
7 for the tax imposed under this Act or the Service Use Tax
8 Act, as the case may be, based on the fair market value of
9 the property at the time the non-qualifying use occurs. No
10 lessor shall collect or attempt to collect an amount (however
11 designated) that purports to reimburse that lessor for the
12 tax imposed by this Act or the Service Use Tax Act, as the
13 case may be, if the tax has not been paid by the lessor. If
14 a lessor improperly collects any such amount from the lessee,
15 the lessee shall have a legal right to claim a refund of that
16 amount from the lessor. If, however, that amount is not
17 refunded to the lessee for any reason, the lessor is liable
18 to pay that amount to the Department.
19 (24) Beginning with taxable years ending on or after
20 December 31, 1995 and ending with taxable years ending on or
21 before December 31, 2004, personal property that is donated
22 for disaster relief to be used in a State or federally
23 declared disaster area in Illinois or bordering Illinois by a
24 manufacturer or retailer that is registered in this State to
25 a corporation, society, association, foundation, or
26 institution that has been issued a sales tax exemption
27 identification number by the Department that assists victims
28 of the disaster who reside within the declared disaster area.
29 (25) Beginning with taxable years ending on or after
30 December 31, 1995 and ending with taxable years ending on or
31 before December 31, 2004, personal property that is used in
32 the performance of infrastructure repairs in this State,
33 including but not limited to municipal roads and streets,
34 access roads, bridges, sidewalks, waste disposal systems,
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1 water and sewer line extensions, water distribution and
2 purification facilities, storm water drainage and retention
3 facilities, and sewage treatment facilities, resulting from a
4 State or federally declared disaster in Illinois or bordering
5 Illinois when such repairs are initiated on facilities
6 located in the declared disaster area within 6 months after
7 the disaster.
8 (26) Qualified technological equipment as defined in
9 Section 168(c)(3)(B)(iv) of the Internal Revenue Code
10 purchased by a lessor who has elected, under Section 2-5(32)
11 of the Retailers' Occupation Tax Act, to pay retailers'
12 occupation tax based on the lessor's gross receipts from the
13 lease of the equipment in this State to a lessee for his or
14 her use and not for the purpose of sublease. This provision
15 shall not be construed to impose any liability upon a lessee.
16 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
17 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
18 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
19 eff. 8-9-96; revised 8-21-96.)
20 Section 10. The Retailers' Occupation Tax Act is amended
21 by changing Section 2-5 as follows:
22 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
23 Sec. 2-5. Exemptions. Gross receipts from proceeds from
24 the sale of the following tangible personal property are
25 exempt from the tax imposed by this Act:
26 (1) Farm chemicals.
27 (2) Farm machinery and equipment, both new and used,
28 including that manufactured on special order, certified by
29 the purchaser to be used primarily for production agriculture
30 or State or federal agricultural programs, including
31 individual replacement parts for the machinery and equipment,
32 and including machinery and equipment purchased for lease,
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1 but excluding motor vehicles required to be registered under
2 the Illinois Vehicle Code.
3 (3) Distillation machinery and equipment, sold as a unit
4 or kit, assembled or installed by the retailer, certified by
5 the user to be used only for the production of ethyl alcohol
6 that will be used for consumption as motor fuel or as a
7 component of motor fuel for the personal use of the user, and
8 not subject to sale or resale.
9 (4) Graphic arts machinery and equipment, including
10 repair and replacement parts, both new and used, and
11 including that manufactured on special order or purchased for
12 lease, certified by the purchaser to be used primarily for
13 graphic arts production.
14 (5) A motor vehicle of the first division, a motor
15 vehicle of the second division that is a self-contained motor
16 vehicle designed or permanently converted to provide living
17 quarters for recreational, camping, or travel use, with
18 direct walk through access to the living quarters from the
19 driver's seat, or a motor vehicle of the second division that
20 is of the van configuration designed for the transportation
21 of not less than 7 nor more than 16 passengers, as defined in
22 Section 1-146 of the Illinois Vehicle Code, that is used for
23 automobile renting, as defined in the Automobile Renting
24 Occupation and Use Tax Act.
25 (6) Personal property sold by a teacher-sponsored
26 student organization affiliated with an elementary or
27 secondary school located in Illinois.
28 (7) Proceeds of that portion of the selling price of a
29 passenger car the sale of which is subject to the Replacement
30 Vehicle Tax.
31 (8) Personal property sold to an Illinois county fair
32 association for use in conducting, operating, or promoting
33 the county fair.
34 (9) Personal property sold to a not-for-profit music or
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1 dramatic arts organization that establishes, by proof
2 required by the Department by rule, that it has received an
3 exemption under Section 501(c) (3) of the Internal Revenue
4 Code and that is organized and operated for the presentation
5 of live public performances of musical or theatrical works on
6 a regular basis.
7 (10) Personal property sold by a corporation, society,
8 association, foundation, institution, or organization, other
9 than a limited liability company, that is organized and
10 operated as a not-for-profit service enterprise for the
11 benefit of persons 65 years of age or older if the personal
12 property was not purchased by the enterprise for the purpose
13 of resale by the enterprise.
14 (11) Personal property sold to a governmental body, to a
15 corporation, society, association, foundation, or institution
16 organized and operated exclusively for charitable, religious,
17 or educational purposes, or to a not-for-profit corporation,
18 society, association, foundation, institution, or
19 organization that has no compensated officers or employees
20 and that is organized and operated primarily for the
21 recreation of persons 55 years of age or older. A limited
22 liability company may qualify for the exemption under this
23 paragraph only if the limited liability company is organized
24 and operated exclusively for educational purposes. On and
25 after July 1, 1987, however, no entity otherwise eligible for
26 this exemption shall make tax-free purchases unless it has an
27 active identification number issued by the Department.
28 (12) Personal property sold to interstate carriers for
29 hire for use as rolling stock moving in interstate commerce
30 or to lessors under leases of one year or longer executed or
31 in effect at the time of purchase by interstate carriers for
32 hire for use as rolling stock moving in interstate commerce
33 and equipment operated by a telecommunications provider,
34 licensed as a common carrier by the Federal Communications
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1 Commission, which is permanently installed in or affixed to
2 aircraft moving in interstate commerce.
3 (13) Proceeds from sales to owners, lessors, or shippers
4 of tangible personal property that is utilized by interstate
5 carriers for hire for use as rolling stock moving in
6 interstate commerce and equipment operated by a
7 telecommunications provider, licensed as a common carrier by
8 the Federal Communications Commission, which is permanently
9 installed in or affixed to aircraft moving in interstate
10 commerce.
11 (14) Machinery and equipment that will be used by the
12 purchaser, or a lessee of the purchaser, primarily in the
13 process of manufacturing or assembling tangible personal
14 property for wholesale or retail sale or lease, whether the
15 sale or lease is made directly by the manufacturer or by some
16 other person, whether the materials used in the process are
17 owned by the manufacturer or some other person, or whether
18 the sale or lease is made apart from or as an incident to the
19 seller's engaging in the service occupation of producing
20 machines, tools, dies, jigs, patterns, gauges, or other
21 similar items of no commercial value on special order for a
22 particular purchaser.
23 (15) Proceeds of mandatory service charges separately
24 stated on customers' bills for purchase and consumption of
25 food and beverages, to the extent that the proceeds of the
26 service charge are in fact turned over as tips or as a
27 substitute for tips to the employees who participate directly
28 in preparing, serving, hosting or cleaning up the food or
29 beverage function with respect to which the service charge is
30 imposed.
31 (16) Petroleum products sold to a purchaser if the
32 seller is prohibited by federal law from charging tax to the
33 purchaser.
34 (17) Tangible personal property sold to a common carrier
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1 by rail that receives the physical possession of the property
2 in Illinois and that transports the property, or shares with
3 another common carrier in the transportation of the property,
4 out of Illinois on a standard uniform bill of lading showing
5 the seller of the property as the shipper or consignor of the
6 property to a destination outside Illinois, for use outside
7 Illinois.
8 (18) Legal tender, currency, medallions, or gold or
9 silver coinage issued by the State of Illinois, the
10 government of the United States of America, or the government
11 of any foreign country, and bullion.
12 (19) Oil field exploration, drilling, and production
13 equipment, including (i) rigs and parts of rigs, rotary rigs,
14 cable tool rigs, and workover rigs, (ii) pipe and tubular
15 goods, including casing and drill strings, (iii) pumps and
16 pump-jack units, (iv) storage tanks and flow lines, (v) any
17 individual replacement part for oil field exploration,
18 drilling, and production equipment, and (vi) machinery and
19 equipment purchased for lease; but excluding motor vehicles
20 required to be registered under the Illinois Vehicle Code.
21 (20) Photoprocessing machinery and equipment, including
22 repair and replacement parts, both new and used, including
23 that manufactured on special order, certified by the
24 purchaser to be used primarily for photoprocessing, and
25 including photoprocessing machinery and equipment purchased
26 for lease.
27 (21) Coal exploration, mining, offhighway hauling,
28 processing, maintenance, and reclamation equipment, including
29 replacement parts and equipment, and including equipment
30 purchased for lease, but excluding motor vehicles required to
31 be registered under the Illinois Vehicle Code.
32 (22) Fuel and petroleum products sold to or used by an
33 air carrier, certified by the carrier to be used for
34 consumption, shipment, or storage in the conduct of its
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1 business as an air common carrier, for a flight destined for
2 or returning from a location or locations outside the United
3 States without regard to previous or subsequent domestic
4 stopovers.
5 (23) A transaction in which the purchase order is
6 received by a florist who is located outside Illinois, but
7 who has a florist located in Illinois deliver the property to
8 the purchaser or the purchaser's donee in Illinois.
9 (24) Fuel consumed or used in the operation of ships,
10 barges, or vessels that are used primarily in or for the
11 transportation of property or the conveyance of persons for
12 hire on rivers bordering on this State if the fuel is
13 delivered by the seller to the purchaser's barge, ship, or
14 vessel while it is afloat upon that bordering river.
15 (25) A motor vehicle sold in this State to a nonresident
16 even though the motor vehicle is delivered to the nonresident
17 in this State, if the motor vehicle is not to be titled in
18 this State, and if a driveaway decal permit is issued to the
19 motor vehicle as provided in Section 3-603 of the Illinois
20 Vehicle Code or if the nonresident purchaser has vehicle
21 registration plates to transfer to the motor vehicle upon
22 returning to his or her home state. The issuance of the
23 driveaway decal permit or having the out-of-state
24 registration plates to be transferred is prima facie evidence
25 that the motor vehicle will not be titled in this State.
26 (26) Semen used for artificial insemination of livestock
27 for direct agricultural production.
28 (27) Horses, or interests in horses, registered with and
29 meeting the requirements of any of the Arabian Horse Club
30 Registry of America, Appaloosa Horse Club, American Quarter
31 Horse Association, United States Trotting Association, or
32 Jockey Club, as appropriate, used for purposes of breeding or
33 racing for prizes.
34 (28) Computers and communications equipment utilized
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1 for any hospital purpose and equipment used in the diagnosis,
2 analysis, or treatment of hospital patients sold to a lessor
3 who leases the equipment, under a lease of one year or longer
4 executed or in effect at the time of the purchase, to a
5 hospital that has been issued an active tax exemption
6 identification number by the Department under Section 1g of
7 this Act.
8 (29) Personal property sold to a lessor who leases the
9 property, under a lease of one year or longer executed or in
10 effect at the time of the purchase, to a governmental body
11 that has been issued an active tax exemption identification
12 number by the Department under Section 1g of this Act.
13 (30) Beginning with taxable years ending on or after
14 December 31, 1995 and ending with taxable years ending on or
15 before December 31, 2004, personal property that is donated
16 for disaster relief to be used in a State or federally
17 declared disaster area in Illinois or bordering Illinois by a
18 manufacturer or retailer that is registered in this State to
19 a corporation, society, association, foundation, or
20 institution that has been issued a sales tax exemption
21 identification number by the Department that assists victims
22 of the disaster who reside within the declared disaster area.
23 (31) Beginning with taxable years ending on or after
24 December 31, 1995 and ending with taxable years ending on or
25 before December 31, 2004, personal property that is used in
26 the performance of infrastructure repairs in this State,
27 including but not limited to municipal roads and streets,
28 access roads, bridges, sidewalks, waste disposal systems,
29 water and sewer line extensions, water distribution and
30 purification facilities, storm water drainage and retention
31 facilities, and sewage treatment facilities, resulting from a
32 State or federally declared disaster in Illinois or bordering
33 Illinois when such repairs are initiated on facilities
34 located in the declared disaster area within 6 months after
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1 the disaster.
2 (32) Qualified technological equipment as defined in
3 Section 168(c)(3)(B)(iv) of the Internal Revenue Code sold to
4 a lessor who has elected to pay the tax imposed under this
5 Act based on the lessor's gross receipts from the lease of
6 the equipment in this State to a lessee for his or her use
7 and not for the purpose of sublease. This election may be
8 made by the issuance of an exemption certificate to the
9 seller of the equipment indicating the lessor's registration
10 number under this Act and certifying that the lessor elects
11 to pay retailers' occupation tax measured by the gross
12 receipts from the lease of that equipment. If this election
13 is made, the gross receipts of each lease payment will be
14 deemed to be receipts from sales at retail for purposes of
15 this Act.
16 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
17 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
18 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
19 eff. 8-9-96; revised 8-21-96.)
20 Section 15. The Counties Code is amended by changing
21 Sections 5-1006 and 5-1006.5 as follows:
22 (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
23 Sec. 5-1006. Home Rule County Retailers' Occupation Tax.
24 Any county that is a home rule unit may impose a tax upon all
25 persons engaged in the business of selling tangible personal
26 property, other than an item of tangible personal property
27 titled or registered with an agency of this State's
28 government, at retail in the county on the gross receipts
29 from such sales made in the course of their business. If
30 imposed, this tax shall only be imposed in 1/4% increments.
31 On and after September 1, 1991, this additional tax may not
32 be imposed on the sales of food for human consumption which
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1 is to be consumed off the premises where it is sold (other
2 than alcoholic beverages, soft drinks and food which has been
3 prepared for immediate consumption) and prescription and
4 nonprescription medicines, drugs, medical appliances and
5 insulin, urine testing materials, syringes and needles used
6 by diabetics. The tax imposed by a home rule county pursuant
7 to this Section and all civil penalties that may be assessed
8 as an incident thereof shall be collected and enforced by the
9 State Department of Revenue. The certificate of registration
10 that is issued by the Department to a retailer under the
11 Retailers' Occupation Tax Act shall permit the retailer to
12 engage in a business that is taxable under any ordinance or
13 resolution enacted pursuant to this Section without
14 registering separately with the Department under such
15 ordinance or resolution or under this Section. The
16 Department shall have full power to administer and enforce
17 this Section; to collect all taxes and penalties due
18 hereunder; to dispose of taxes and penalties so collected in
19 the manner hereinafter provided; and to determine all rights
20 to credit memoranda arising on account of the erroneous
21 payment of tax or penalty hereunder. In the administration
22 of, and compliance with, this Section, the Department and
23 persons who are subject to this Section shall have the same
24 rights, remedies, privileges, immunities, powers and duties,
25 and be subject to the same conditions, restrictions,
26 limitations, penalties and definitions of terms, and employ
27 the same modes of procedure, as are prescribed in Sections 1,
28 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to
29 all provisions therein other than the State rate of tax), 4,
30 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b,
31 6c, 7, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation
32 Tax Act and Section 3-7 of the Uniform Penalty and Interest
33 Act, as fully as if those provisions were set forth herein.
34 No tax may be imposed by a home rule county pursuant to
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1 this Section unless the county also imposes a tax at the same
2 rate pursuant to Section 5-1007.
3 Persons subject to any tax imposed pursuant to the
4 authority granted in this Section may reimburse themselves
5 for their seller's tax liability hereunder by separately
6 stating such tax as an additional charge, which charge may be
7 stated in combination, in a single amount, with State tax
8 which sellers are required to collect under the Use Tax Act,
9 pursuant to such bracket schedules as the Department may
10 prescribe.
11 Whenever the Department determines that a refund should
12 be made under this Section to a claimant instead of issuing a
13 credit memorandum, the Department shall notify the State
14 Comptroller, who shall cause the order to be drawn for the
15 amount specified and to the person named in the notification
16 from the Department. The refund shall be paid by the State
17 Treasurer out of the home rule county retailers' occupation
18 tax fund.
19 The Department shall forthwith pay over to the State
20 Treasurer, ex officio, as trustee, all taxes and penalties
21 collected hereunder. On or before the 25th day of each
22 calendar month, the Department shall prepare and certify to
23 the Comptroller the disbursement of stated sums of money to
24 named counties, the counties to be those from which retailers
25 have paid taxes or penalties hereunder to the Department
26 during the second preceding calendar month. The amount to be
27 paid to each county shall be the amount (not including credit
28 memoranda) collected hereunder during the second preceding
29 calendar month by the Department plus an amount the
30 Department determines is necessary to offset any amounts that
31 were erroneously paid to a different taxing body, and not
32 including an amount equal to the amount of refunds made
33 during the second preceding calendar month by the Department
34 on behalf of such county, and not including any amount which
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1 the Department determines is necessary to offset any amounts
2 which were payable to a different taxing body but were
3 erroneously paid to the county. Within 10 days after receipt,
4 by the Comptroller, of the disbursement certification to the
5 counties provided for in this Section to be given to the
6 Comptroller by the Department, the Comptroller shall cause
7 the orders to be drawn for the respective amounts in
8 accordance with the directions contained in the
9 certification.
10 In addition to the disbursement required by the preceding
11 paragraph, an allocation shall be made in March of each year
12 to each county that received more than $500,000 in
13 disbursements under the preceding paragraph in the preceding
14 calendar year. The allocation shall be in an amount equal to
15 the average monthly distribution made to each such county
16 under the preceding paragraph during the preceding calendar
17 year (excluding the 2 months of highest receipts). The
18 distribution made in March of each year subsequent to the
19 year in which an allocation was made pursuant to this
20 paragraph and the preceding paragraph shall be reduced by the
21 amount allocated and disbursed under this paragraph in the
22 preceding calendar year. The Department shall prepare and
23 certify to the Comptroller for disbursement the allocations
24 made in accordance with this paragraph.
25 For the purpose of determining the local governmental
26 unit whose tax is applicable, a retail sale by a producer of
27 coal or other mineral mined in Illinois is a sale at retail
28 at the place where the coal or other mineral mined in
29 Illinois is extracted from the earth. This paragraph does
30 not apply to coal or other mineral when it is delivered or
31 shipped by the seller to the purchaser at a point outside
32 Illinois so that the sale is exempt under the United States
33 Constitution as a sale in interstate or foreign commerce. For
34 purposes of determining the local governmental unit whose tax
-18- LRB9002207DNmbB
1 is applicable under Section 2-5(32) of the Retailers'
2 Occupation Tax Act, a retail sale by a lessor is a sale at
3 retail at the place where leased tangible personal property
4 is located.
5 Nothing in this Section shall be construed to authorize a
6 county to impose a tax upon the privilege of engaging in any
7 business which under the Constitution of the United States
8 may not be made the subject of taxation by this State.
9 An ordinance or resolution imposing or discontinuing a
10 tax hereunder or effecting a change in the rate thereof shall
11 be adopted and a certified copy thereof filed with the
12 Department on or before the first day of June, whereupon the
13 Department shall proceed to administer and enforce this
14 Section as of the first day of September next following such
15 adoption and filing. Beginning January 1, 1992, an ordinance
16 or resolution imposing or discontinuing the tax hereunder or
17 effecting a change in the rate thereof shall be adopted and a
18 certified copy thereof filed with the Department on or before
19 the first day of July, whereupon the Department shall proceed
20 to administer and enforce this Section as of the first day of
21 October next following such adoption and filing. Beginning
22 January 1, 1993, an ordinance or resolution imposing or
23 discontinuing the tax hereunder or effecting a change in the
24 rate thereof shall be adopted and a certified copy thereof
25 filed with the Department on or before the first day of
26 October, whereupon the Department shall proceed to administer
27 and enforce this Section as of the first day of January next
28 following such adoption and filing.
29 When certifying the amount of a monthly disbursement to a
30 county under this Section, the Department shall increase or
31 decrease such amount by an amount necessary to offset any
32 misallocation of previous disbursements. The offset amount
33 shall be the amount erroneously disbursed within the previous
34 6 months from the time a misallocation is discovered.
-19- LRB9002207DNmbB
1 This Section shall be known and may be cited as the "Home
2 Rule County Retailers' Occupation Tax Law".
3 (Source: P.A. 86-962; 86-1028; 86-1475; 87-205; 87-895.)
4 (55 ILCS 5/5-1006.5)
5 Sec. 5-1006.5. Special County Retailers' Occupation Tax
6 For Public Safety.
7 (a) The county board of any county with a population in
8 excess of 180,000 inhabitants, as determined by the most
9 recent decennial census, may impose a tax upon all persons
10 engaged in the business of selling tangible personal
11 property, other than personal property titled or registered
12 with an agency of this State's government, at retail in the
13 county on the gross receipts from the sales made in the
14 course of business to provide revenue to be used exclusively
15 for public safety purposes in that county, if a proposition
16 for the tax has been submitted to the electors of that county
17 and approved by a majority of those voting on the question.
18 If imposed, this tax shall be imposed only in one-quarter
19 percent increments. By resolution, the county board may order
20 the proposition to be submitted at any election. The county
21 clerk shall certify the question to the proper election
22 authority, who shall submit the proposition at an election in
23 accordance with the general election law.
24 The proposition shall be in substantially the following
25 form:
26 "Shall (name of county) be authorized to impose a
27 public safety tax at the rate of .... upon all persons
28 engaged in the business of selling tangible personal
29 property at retail in the county on gross receipts from
30 the sales made in the course of their business to be used
31 for crime prevention, detention, and other public safety
32 purposes?"
33 Votes shall be recorded as Yes or No. If a majority of the
-20- LRB9002207DNmbB
1 electors voting on the proposition vote in favor of it, the
2 county may impose the tax.
3 This additional tax may not be imposed on the sales of
4 food for human consumption that is to be consumed off the
5 premises where it is sold (other than alcoholic beverages,
6 soft drinks, and food which has been prepared for immediate
7 consumption) and prescription and non-prescription medicines,
8 drugs, medical appliances and insulin, urine testing
9 materials, syringes, and needles used by diabetics. The tax
10 imposed by a county under this Section and all civil
11 penalties that may be assessed as an incident of the tax
12 shall be collected and enforced by the Illinois Department of
13 Revenue. The certificate of registration that is issued by
14 the Department to a retailer under the Retailers' Occupation
15 Tax Act shall permit the retailer to engage in a business
16 that is taxable without registering separately with the
17 Department under an ordinance or resolution under this
18 Section. The Department has full power to administer and
19 enforce this Section, to collect all taxes and penalties due
20 under this Section, to dispose of taxes and penalties so
21 collected in the manner provided in this Section, and to
22 determine all rights to credit memoranda arising on account
23 of the erroneous payment of a tax or penalty under this
24 Section. In the administration of and compliance with this
25 Section, the Department and persons who are subject to this
26 Section shall (i) have the same rights, remedies, privileges,
27 immunities, powers, and duties, (ii) be subject to the same
28 conditions, restrictions, limitations, penalties, and
29 definitions of terms, and (iii) employ the same modes of
30 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
31 1f, 1i, 1j, 2, 2-10 (in respect to all provisions contained
32 in those Sections other than the State rate of tax), 2-40,
33 2a, 2b, 2c, 3 (except provisions relating to transaction
34 returns and quarter monthly payments), 4, 5, 5a, 5b, 5c, 5d,
-21- LRB9002207DNmbB
1 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10,
2 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act and
3 Section 3-7 of the Uniform Penalty and Interest Act as if
4 those provisions were set forth in this Section.
5 Persons subject to any tax imposed under the authority
6 granted in this Section may reimburse themselves for their
7 sellers' tax liability by separately stating the tax as an
8 additional charge, which charge may be stated in combination,
9 in a single amount, with State tax which sellers are required
10 to collect under the Use Tax Act, pursuant to such bracketed
11 schedules as the Department may prescribe.
12 Whenever the Department determines that a refund should
13 be made under this Section to a claimant instead of issuing a
14 credit memorandum, the Department shall notify the State
15 Comptroller, who shall cause the order to be drawn for the
16 amount specified and to the person named in the notification
17 from the Department. The refund shall be paid by the State
18 Treasurer out of the County Public Safety Retailers'
19 Occupation Tax Fund.
20 (b) If a tax has been imposed under subsection (a), a
21 service occupation tax shall also be imposed at the same rate
22 upon all persons engaged, in the county, in the business of
23 making sales of service, who, as an incident to making those
24 sales of service, transfer tangible personal property within
25 the county as an incident to a sale of service. This tax may
26 not be imposed on sales of food for human consumption that is
27 to be consumed off the premises where it is sold (other than
28 alcoholic beverages, soft drinks, and food prepared for
29 immediate consumption) and prescription and non-prescription
30 medicines, drugs, medical appliances and insulin, urine
31 testing materials, syringes, and needles used by diabetics.
32 The tax imposed under this subsection and all civil penalties
33 that may be assessed as an incident thereof shall be
34 collected and enforced by the Department of Revenue. The
-22- LRB9002207DNmbB
1 Department has full power to administer and enforce this
2 subsection; to collect all taxes and penalties due hereunder;
3 to dispose of taxes and penalties so collected in the manner
4 hereinafter provided; and to determine all rights to credit
5 memoranda arising on account of the erroneous payment of tax
6 or penalty hereunder. In the administration of, and
7 compliance with this subsection, the Department and persons
8 who are subject to this paragraph shall (i) have the same
9 rights, remedies, privileges, immunities, powers, and duties,
10 (ii) be subject to the same conditions, restrictions,
11 limitations, penalties, exclusions, exemptions, and
12 definitions of terms, and (iii) employ the same modes of
13 procedure as are prescribed in Sections 1a-1, 2 (except that
14 the reference to State in the definition of supplier
15 maintaining a place of business in this State shall mean the
16 county), 2a, 3 through 3-50 (in respect to all provisions
17 therein other than the State rate of tax), 4 (except that the
18 reference to the State shall be to the county), 5, 7, 8
19 (except that the jurisdiction to which the tax shall be a
20 debt to the extent indicated in that Section 8 shall be the
21 county), 9 (except as to the disposition of taxes and
22 penalties collected, and except that the returned merchandise
23 credit for this tax may not be taken against any State tax),
24 10, 11, 12 (except the reference therein to Section 2b of the
25 Retailers' Occupation Tax Act), 13 (except that any reference
26 to the State shall mean the county), the first paragraph of
27 Section 15, 16, 17, 18, 19 and 20 of the Service Occupation
28 Tax Act and Section 3-7 of the Uniform Penalty and Interest
29 Act, as fully as if those provisions were set forth herein.
30 Persons subject to any tax imposed under the authority
31 granted in this subsection may reimburse themselves for their
32 serviceman's tax liability by separately stating the tax as
33 an additional charge, which charge may be stated in
34 combination, in a single amount, with State tax that
-23- LRB9002207DNmbB
1 servicemen are authorized to collect under the Service Use
2 Tax Act, in accordance with such bracket schedules as the
3 Department may prescribe.
4 Whenever the Department determines that a refund should
5 be made under this subsection to a claimant instead of
6 issuing a credit memorandum, the Department shall notify the
7 State Comptroller, who shall cause the warrant to be drawn
8 for the amount specified, and to the person named, in the
9 notification from the Department. The refund shall be paid
10 by the State Treasurer out of the County Public Safety
11 Retailers' Occupation Fund.
12 Nothing in this subsection shall be construed to
13 authorize the county to impose a tax upon the privilege of
14 engaging in any business which under the Constitution of the
15 United States may not be made the subject of taxation by the
16 State.
17 (c) The Department shall immediately pay over to the
18 State Treasurer, Ex Officio, as trustee, all taxes and
19 penalties collected under this Section to be deposited into
20 the County Public Safety Retailers' Occupation Tax Fund,
21 which is created in the State treasury. On or before the
22 25th day of each calendar month, the Department shall prepare
23 and certify to the Comptroller the disbursement of stated
24 sums of money to the counties from which retailers have paid
25 taxes or penalties to the Department during the second
26 preceding calendar month. The amount to be paid to each
27 county shall be the amount (not including credit memoranda)
28 collected under this Section during the second preceding
29 calendar month by the Department plus an amount the
30 Department determines is necessary to offset any amounts that
31 were erroneously paid to a different taxing body, and not
32 including (i) an amount equal to the amount of refunds made
33 during the second preceding calendar month by the Department
34 on behalf of the county and (ii) any amount that the
-24- LRB9002207DNmbB
1 Department determines is necessary to offset any amounts that
2 were payable to a different taxing body but were erroneously
3 paid to the county. Within 10 days after receipt by the
4 Comptroller of the disbursement certification to the counties
5 provided for in this Section to be given to the Comptroller
6 by the Department, the Comptroller shall cause the orders to
7 be drawn for the respective amounts in accordance with
8 directions contained in the certification.
9 In addition to the disbursement required by the preceding
10 paragraph, an allocation shall be made in March of each year
11 to each county that received more than $500,000 in
12 disbursements under the preceding paragraph in the preceding
13 calendar year. The allocation shall be in an amount equal to
14 the average monthly distribution made to each such county
15 under the preceding paragraph during the preceding calendar
16 year (excluding the 2 months of highest receipts). The
17 distribution made in March of each year subsequent to the
18 year in which an allocation was made pursuant to this
19 paragraph and the preceding paragraph shall be reduced by the
20 amount allocated and disbursed under this paragraph in the
21 preceding calendar year. The Department shall prepare and
22 certify to the Comptroller for disbursement the allocations
23 made in accordance with this paragraph.
24 (d) For the purpose of determining the local
25 governmental unit whose tax is applicable, a retail sale by a
26 producer of coal or another mineral mined in Illinois is a
27 sale at retail at the place where the coal or other mineral
28 mined in Illinois is extracted from the earth. This
29 paragraph does not apply to coal or another mineral when it
30 is delivered or shipped by the seller to the purchaser at a
31 point outside Illinois so that the sale is exempt under the
32 United States Constitution as a sale in interstate or foreign
33 commerce. For purposes of determining the local governmental
34 unit whose tax is applicable under Section 2-5(32) of the
-25- LRB9002207DNmbB
1 Retailers' Occupation Tax Act, a retail sale by a lessor is a
2 sale at retail at the place where leased tangible personal
3 property is located.
4 (e) Nothing in this Section shall be construed to
5 authorize a county to impose a tax upon the privilege of
6 engaging in any business that under the Constitution of the
7 United States may not be made the subject of taxation by this
8 State.
9 (f) The results of any election authorizing a
10 proposition to impose a tax under this Section or effecting a
11 change in the rate of tax shall be certified by the county
12 clerk and filed with the Illinois Department of Revenue on or
13 before the first day of June. The Illinois Department of
14 Revenue shall then proceed to administer and enforce this
15 Section as of the first day of January next following the
16 filing.
17 (g) When certifying the amount of a monthly disbursement
18 to a county under this Section, the Department shall increase
19 or decrease the amounts by an amount necessary to offset any
20 miscalculation of previous disbursements. The offset amount
21 shall be the amount erroneously disbursed within the previous
22 6 months from the time a miscalculation is discovered.
23 (h) This Section may be cited as the "Special County
24 Occupation Tax For Public Safety Law".
25 (Source: P.A. 89-107, eff. 1-1-96.)
26 Section 20. The Illinois Municipal Code is amended by
27 changing Sections 8-11-1, 8-11-1.3, and 8-11-1.6 as follows:
28 (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
29 Sec. 8-11-1. The corporate authorities of a home rule
30 municipality may impose a tax upon all persons engaged in the
31 business of selling tangible personal property, other than an
32 item of tangible personal property titled or registered with
-26- LRB9002207DNmbB
1 an agency of this State's government, at retail in the
2 municipality on the gross receipts from these sales made in
3 the course of such business. If imposed, the tax shall only
4 be imposed in 1/4% increments. On and after September 1,
5 1991, this additional tax may not be imposed on the sales of
6 food for human consumption that is to be consumed off the
7 premises where it is sold (other than alcoholic beverages,
8 soft drinks and food that has been prepared for immediate
9 consumption) and prescription and nonprescription medicines,
10 drugs, medical appliances and insulin, urine testing
11 materials, syringes and needles used by diabetics. The tax
12 imposed by a home rule municipality under this Section and
13 all civil penalties that may be assessed as an incident of
14 the tax shall be collected and enforced by the State
15 Department of Revenue. The certificate of registration that
16 is issued by the Department to a retailer under the
17 Retailers' Occupation Tax Act shall permit the retailer to
18 engage in a business that is taxable under any ordinance or
19 resolution enacted pursuant to this Section without
20 registering separately with the Department under such
21 ordinance or resolution or under this Section. The
22 Department shall have full power to administer and enforce
23 this Section; to collect all taxes and penalties due
24 hereunder; to dispose of taxes and penalties so collected in
25 the manner hereinafter provided; and to determine all rights
26 to credit memoranda arising on account of the erroneous
27 payment of tax or penalty hereunder. In the administration
28 of, and compliance with, this Section the Department and
29 persons who are subject to this Section shall have the same
30 rights, remedies, privileges, immunities, powers and duties,
31 and be subject to the same conditions, restrictions,
32 limitations, penalties and definitions of terms, and employ
33 the same modes of procedure, as are prescribed in Sections 1,
34 1a, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all
-27- LRB9002207DNmbB
1 provisions therein other than the State rate of tax), 2c, 3
2 (except as to the disposition of taxes and penalties
3 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
4 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 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 herein.
8 No tax may be imposed by a home rule municipality under
9 this Section unless the municipality also imposes a tax at
10 the same rate under Section 8-11-5 of this Act.
11 Persons subject to any tax imposed under the authority
12 granted in this Section may reimburse themselves for their
13 seller's tax liability hereunder by separately stating that
14 tax as an additional charge, which charge may be stated in
15 combination, in a single amount, with State tax which sellers
16 are required to collect under the Use Tax Act, pursuant to
17 such bracket schedules as the Department may prescribe.
18 Whenever the Department determines that a refund should
19 be made under this Section to a claimant instead of issuing a
20 credit memorandum, the Department shall notify the State
21 Comptroller, who shall cause the order to be drawn for the
22 amount specified and to the person named in the notification
23 from the Department. The refund shall be paid by the State
24 Treasurer out of the home rule municipal retailers'
25 occupation tax fund.
26 The Department shall immediately pay over to the State
27 Treasurer, ex officio, as trustee, all taxes and penalties
28 collected hereunder. On or before the 25th day of each
29 calendar month, the Department shall prepare and certify to
30 the Comptroller the disbursement of stated sums of money to
31 named municipalities, the municipalities to be those from
32 which retailers have paid taxes or penalties hereunder to the
33 Department during the second preceding calendar month. The
34 amount to be paid to each municipality shall be the amount
-28- LRB9002207DNmbB
1 (not including credit memoranda) collected hereunder during
2 the second preceding calendar month by the Department plus an
3 amount the Department determines is necessary to offset any
4 amounts that were erroneously paid to a different taxing
5 body, and not including an amount equal to the amount of
6 refunds made during the second preceding calendar month by
7 the Department on behalf of such municipality, and not
8 including any amount that the Department determines is
9 necessary to offset any amounts that were payable to a
10 different taxing body but were erroneously paid to the
11 municipality. Within 10 days after receipt by the Comptroller
12 of the disbursement certification to the municipalities
13 provided for in this Section to be given to the Comptroller
14 by the Department, the Comptroller shall cause the orders to
15 be drawn for the respective amounts in accordance with the
16 directions contained in the certification.
17 In addition to the disbursement required by the preceding
18 paragraph and in order to mitigate delays caused by
19 distribution procedures, an allocation shall, if requested,
20 be made within 10 days after January 14, 1991, and in
21 November of 1991 and each year thereafter, to each
22 municipality that received more than $500,000 during the
23 preceding fiscal year, (July 1 through June 30) whether
24 collected by the municipality or disbursed by the Department
25 as required by this Section. Within 10 days after January 14,
26 1991, participating municipalities shall notify the
27 Department in writing of their intent to participate. In
28 addition, for the initial distribution, participating
29 municipalities shall certify to the Department the amounts
30 collected by the municipality for each month under its home
31 rule occupation and service occupation tax during the period
32 July 1, 1989 through June 30, 1990. The allocation within 10
33 days after January 14, 1991, shall be in an amount equal to
34 the monthly average of these amounts, excluding the 2 months
-29- LRB9002207DNmbB
1 of highest receipts. The monthly average for the period of
2 July 1, 1990 through June 30, 1991 will be determined as
3 follows: the amounts collected by the municipality under its
4 home rule occupation and service occupation tax during the
5 period of July 1, 1990 through September 30, 1990, plus
6 amounts collected by the Department and paid to such
7 municipality through June 30, 1991, excluding the 2 months of
8 highest receipts. The monthly average for each subsequent
9 period of July 1 through June 30 shall be an amount equal to
10 the monthly distribution made to each such municipality under
11 the preceding paragraph during this period, excluding the 2
12 months of highest receipts. The distribution made in
13 November 1991 and each year thereafter under this paragraph
14 and the preceding paragraph shall be reduced by the amount
15 allocated and disbursed under this paragraph in the preceding
16 period of July 1 through June 30. The Department shall
17 prepare and certify to the Comptroller for disbursement the
18 allocations made in accordance with this paragraph.
19 For the purpose of determining the local governmental
20 unit whose tax is applicable, a retail sale by a producer of
21 coal or other mineral mined in Illinois is a sale at retail
22 at the place where the coal or other mineral mined in
23 Illinois is extracted from the earth. This paragraph does
24 not apply to coal or other mineral when it is delivered or
25 shipped by the seller to the purchaser at a point outside
26 Illinois so that the sale is exempt under the United States
27 Constitution as a sale in interstate or foreign commerce. For
28 purposes of determining the local governmental unit whose tax
29 is applicable under Section 2-5(32) of the Retailers'
30 Occupation Tax Act, a retail sale by a lessor is a sale at
31 retail at the place where leased tangible personal property
32 is located.
33 Nothing in this Section shall be construed to authorize a
34 municipality to impose a tax upon the privilege of engaging
-30- LRB9002207DNmbB
1 in any business which under the Constitution of the United
2 States may not be made the subject of taxation by this State.
3 An ordinance or resolution imposing or discontinuing a
4 tax hereunder or effecting a change in the rate thereof shall
5 be adopted and a certified copy thereof filed with the
6 Department on or before the first day of June, whereupon the
7 Department shall proceed to administer and enforce this
8 Section as of the first day of September next following the
9 adoption and filing. Beginning January 1, 1992, an ordinance
10 or resolution imposing or discontinuing the tax hereunder or
11 effecting a change in the rate thereof shall be adopted and a
12 certified copy thereof filed with the Department on or before
13 the first day of July, whereupon the Department shall proceed
14 to administer and enforce this Section as of the first day of
15 October next following such adoption and filing. Beginning
16 January 1, 1993, an ordinance or resolution imposing or
17 discontinuing the tax hereunder or effecting a change in the
18 rate thereof shall be adopted and a certified copy thereof
19 filed with the Department on or before the first day of
20 October, whereupon the Department shall proceed to administer
21 and enforce this Section as of the first day of January next
22 following the adoption and filing. However, a municipality
23 located in a county with a population in excess of 3,000,000
24 that elected to become a home rule unit at the general
25 primary election in 1994 may adopt an ordinance or resolution
26 imposing the tax under this Section and file a certified copy
27 of the ordinance or resolution with the Department on or
28 before July 1, 1994. The Department shall then proceed to
29 administer and enforce this Section as of October 1, 1994.
30 When certifying the amount of a monthly disbursement to a
31 municipality under this Section, the Department shall
32 increase or decrease the amount by an amount necessary to
33 offset any misallocation of previous disbursements. The
34 offset amount shall be the amount erroneously disbursed
-31- LRB9002207DNmbB
1 within the previous 6 months from the time a misallocation is
2 discovered.
3 Any unobligated balance remaining in the Municipal
4 Retailers' Occupation Tax Fund on December 31, 1989, which
5 fund was abolished by Public Act 85-1135, and all receipts of
6 municipal tax as a result of audits of liability periods
7 prior to January 1, 1990, shall be paid into the Local
8 Government Tax Fund for distribution as provided by this
9 Section prior to the enactment of Public Act 85-1135. All
10 receipts of municipal tax as a result of an assessment not
11 arising from an audit, for liability periods prior to January
12 1, 1990, shall be paid into the Local Government Tax Fund for
13 distribution before July 1, 1990, as provided by this Section
14 prior to the enactment of Public Act 85-1135; and on and
15 after July 1, 1990, all such receipts shall be distributed as
16 provided in Section 6z-18 of the State Finance Act.
17 As used in this Section, "municipal" and "municipality"
18 means a city, village or incorporated town, including an
19 incorporated town that has superseded a civil township.
20 This Section shall be known and may be cited as the Home
21 Rule Municipal Retailers' Occupation Tax Act.
22 (Source: P.A. 87-205; 87-435; 87-895; 88-603, eff. 9-1-94.)
23 (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
24 Sec. 8-11-1.3. The corporate authorities of a non-home
25 rule municipality with more than 130,000 but less than
26 2,000,000 inhabitants may impose a tax upon all persons
27 engaged in the business of selling tangible personal
28 property, other than on an item of tangible personal property
29 which is titled and registered by an agency of this State's
30 Government, at retail in the municipality at the rate of 1/2
31 of 1% for expenditure on public infrastructure as defined in
32 Section 8-11-1.2 if approved by referendum as provided in
33 Section 8-11-1.1, of the gross receipts from such sales made
-32- LRB9002207DNmbB
1 in the course of such business. The tax imposed by a
2 municipality pursuant to this Section and all civil penalties
3 that may be assessed as an incident thereof shall be
4 collected and enforced by the State Department of Revenue.
5 The certificate of registration which is issued by the
6 Department to a retailer under the Retailers' Occupation Tax
7 Act shall permit such retailer to engage in a business which
8 is taxable under any ordinance or resolution enacted pursuant
9 to this Section without registering separately with the
10 Department under such ordinance or resolution or under this
11 Section. The Department shall have full power to administer
12 and enforce this Section; to collect all taxes and penalties
13 due hereunder; to dispose of taxes and penalties so collected
14 in the manner hereinafter provided, and to determine all
15 rights to credit memoranda, arising on account of the
16 erroneous payment of tax or penalty hereunder. In the
17 administration of, and compliance with, this Section, the
18 Department and persons who are subject to this Section shall
19 have the same rights, remedies, privileges, immunities,
20 powers and duties, and be subject to the same conditions,
21 restrictions, limitations, penalties and definitions of
22 terms, and employ the same modes of procedure, as are
23 prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
24 through 2-65 (in respect to all provisions therein other than
25 the State rate of tax), 2c, 3 (except as to the disposition
26 of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e,
27 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
28 12 and 13 of the Retailers' Occupation Tax Act and Section
29 3-7 of the Uniform Penalty and Interest Act as fully as if
30 those provisions were set forth herein.
31 Persons subject to any tax imposed pursuant to the
32 authority granted in this Section may reimburse themselves
33 for their seller's tax liability hereunder by separately
34 stating such tax as an additional charge, which charge may be
-33- LRB9002207DNmbB
1 stated in combination, in a single amount, with State tax
2 which sellers are required to collect under the Use Tax Act,
3 pursuant to such bracket schedules as the Department may
4 prescribe.
5 Whenever the Department determines that a refund should
6 be made under this Section to a claimant instead of issuing a
7 credit memorandum, the Department shall notify the State
8 Comptroller, who shall cause the order to be drawn for the
9 amount specified, and to the person named, in such
10 notification from the Department. Such refund shall be paid
11 by the State Treasurer out of the non-home rule municipal
12 retailers' occupation tax fund.
13 The Department shall forthwith pay over to the State
14 Treasurer, ex officio, as trustee, all taxes and penalties
15 collected hereunder. On or before the 25th day of each
16 calendar month, the Department shall prepare and certify to
17 the Comptroller the disbursement of stated sums of money to
18 named municipalities, the municipalities to be those from
19 which retailers have paid taxes or penalties hereunder to the
20 Department during the second preceding calendar month. The
21 amount to be paid to each municipality shall be the amount
22 (not including credit memoranda) collected hereunder during
23 the second preceding calendar month by the Department plus an
24 amount the Department determines is necessary to offset any
25 amounts which were erroneously paid to a different taxing
26 body, and not including an amount equal to the amount of
27 refunds made during the second preceding calendar month by
28 the Department on behalf of such municipality, and not
29 including any amount which the Department determines is
30 necessary to offset any amounts which were payable to a
31 different taxing body but were erroneously paid to the
32 municipality. Within 10 days after receipt, by the
33 Comptroller, of the disbursement certification to the
34 municipalities, provided for in this Section to be given to
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1 the Comptroller by the Department, the Comptroller shall
2 cause the orders to be drawn for the respective amounts in
3 accordance with the directions contained in such
4 certification.
5 For the purpose of determining the local governmental
6 unit whose tax is applicable, a retail sale, by a producer of
7 coal or other mineral mined in Illinois, is a sale at retail
8 at the place where the coal or other mineral mined in
9 Illinois is extracted from the earth. This paragraph does
10 not apply to coal or other mineral when it is delivered or
11 shipped by the seller to the purchaser at a point outside
12 Illinois so that the sale is exempt under the Federal
13 Constitution as a sale in interstate or foreign commerce. For
14 purposes of determining the local governmental unit whose tax
15 is applicable under Section 2-5(32) of the Retailers'
16 Occupation Tax Act, a retail sale by a lessor is a sale at
17 retail at the place where leased tangible personal property
18 is located.
19 Nothing in this Section shall be construed to authorize a
20 municipality to impose a tax upon the privilege of engaging
21 in any business which under the constitution of the United
22 States may not be made the subject of taxation by this State.
23 When certifying the amount of a monthly disbursement to a
24 municipality under this Section, the Department shall
25 increase or decrease such amount by an amount necessary to
26 offset any misallocation of previous disbursements. The
27 offset amount shall be the amount erroneously disbursed
28 within the previous 6 months from the time a misallocation is
29 discovered.
30 As used in this Section, "municipal" and "municipality"
31 means a city, village or incorporated town, including an
32 incorporated town which has superseded a civil township.
33 This Section shall be known and may be cited as the
34 "Non-Home Rule Municipal Retailers' Occupation Tax Act".
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1 (Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
2 (65 ILCS 5/8-11-1.6)
3 Sec. 8-11-1.6. Non-home rule municipal retailers
4 occupation tax; municipalities between 20,000 and 25,000. The
5 corporate authorities of a non-home rule municipality with a
6 population of more than 20,000 but less than 25,000 that has,
7 prior to January 1, 1987, established a Redevelopment Project
8 Area that has been certified as a State Sales Tax Boundary
9 and has issued bonds or otherwise incurred indebtedness to
10 pay for costs in excess of $5,000,000, which is secured in
11 part by a tax increment allocation fund, in accordance with
12 the provisions of Division 11-74.4 of this Code may, by
13 passage of an ordinance, impose a tax upon all persons
14 engaged in the business of selling tangible personal
15 property, other than on an item of tangible personal property
16 that is titled and registered by an agency of this State's
17 Government, at retail in the municipality. This tax may not
18 be imposed on the sales of food for human consumption that is
19 to be consumed off the premises where it is sold (other than
20 alcoholic beverages, soft drinks, and food that has been
21 prepared for immediate consumption) and prescription and
22 nonprescription medicines, drugs, medical appliances and
23 insulin, urine testing materials, syringes, and needles used
24 by diabetics. If imposed, the tax shall only be imposed in
25 .25% increments of the gross receipts from such sales made in
26 the course of business. Any tax imposed by a municipality
27 under this Sec. and all civil penalties that may be assessed
28 as an incident thereof shall be collected and enforced by the
29 State Department of Revenue. An ordinance imposing a tax
30 hereunder or effecting a change in the rate thereof shall be
31 adopted and a certified copy thereof filed with the
32 Department on or before the first day of October, whereupon
33 the Department shall proceed to administer and enforce this
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1 Section as of the first day of January next following such
2 adoption and filing. The certificate of registration that is
3 issued by the Department to a retailer under the Retailers'
4 Occupation Tax Act shall permit the retailer to engage in a
5 business that is taxable under any ordinance or resolution
6 enacted under this Section without registering separately
7 with the Department under the ordinance or resolution or
8 under this Section. The Department shall have full power to
9 administer and enforce this Section, to collect all taxes and
10 penalties due hereunder, to dispose of taxes and penalties so
11 collected in the manner hereinafter provided, and to
12 determine all rights to credit memoranda, arising on account
13 of the erroneous payment of tax or penalty hereunder. In the
14 administration of, and compliance with this Section, the
15 Department and persons who are subject to this Section shall
16 have the same rights, remedies, privileges, immunities,
17 powers, and duties, and be subject to the same conditions,
18 restrictions, limitations, penalties, and definitions of
19 terms, and employ the same modes of procedure, as are
20 prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
21 through 2-65 (in respect to all provisions therein other than
22 the State rate of tax), 2c, 3 (except as to the disposition
23 of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e,
24 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
25 12 and 13 of the Retailers' Occupation Tax Act and Section
26 3-7 of the Uniform Penalty and Interest Act as fully as if
27 those provisions were set forth herein.
28 A tax may not be imposed by a municipality under this
29 Section unless the municipality also imposes a tax at the
30 same rate under Section 8-11-1.7 of this Act.
31 Persons subject to any tax imposed under the authority
32 granted in this Section, may reimburse themselves for their
33 seller's tax liability hereunder by separately stating the
34 tax as an additional charge, which charge may be stated in
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1 combination, in a single amount, with State tax which sellers
2 are required to collect under the Use Tax Act, pursuant to
3 such bracket schedules as the Department may prescribe.
4 Whenever the Department determines that a refund should
5 be made under this Section to a claimant, instead of issuing
6 a credit memorandum, the Department shall notify the State
7 Comptroller, who shall cause the order to be drawn for the
8 amount specified, and to the person named in the notification
9 from the Department. The refund shall be paid by the State
10 Treasurer out of the Non-Home Rule Municipal Retailers'
11 Occupation Tax Fund, which is hereby created.
12 The Department shall forthwith pay over to the State
13 Treasurer, ex officio, as trustee, all taxes and penalties
14 collected hereunder. On or before the 25th day of each
15 calendar month, the Department shall prepare and certify to
16 the Comptroller the disbursement of stated sums of money to
17 named municipalities, the municipalities to be those from
18 which retailers have paid taxes or penalties hereunder to the
19 Department during the second preceding calendar month. The
20 amount to be paid to each municipality shall be the amount
21 (not including credit memoranda) collected hereunder during
22 the second preceding calendar month by the Department plus an
23 amount the Department determines is necessary to offset any
24 amounts that were erroneously paid to a different taxing
25 body, and not including an amount equal to the amount of
26 refunds made during the second preceding calendar month by
27 the Department on behalf of the municipality, and not
28 including any amount that the Department determines is
29 necessary to offset any amounts that were payable to a
30 different taxing body but were erroneously paid to the
31 municipality. Within 10 days after receipt by the
32 Comptroller of the disbursement certification to the
33 municipalities provided for in this Section to be given to
34 the Comptroller by the Department, the Comptroller shall
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1 cause the orders to be drawn for the respective amounts in
2 accordance with the directions contained in the
3 certification.
4 For the purpose of determining the local governmental
5 unit whose tax is applicable, a retail sale by a producer of
6 coal or other mineral mined in Illinois is a sale at retail
7 at the place where the coal or other mineral mined in
8 Illinois is extracted from the earth. This paragraph does
9 not apply to coal or other mineral when it is delivered or
10 shipped by the seller to the purchaser at a point outside
11 Illinois so that the sale is exempt under the federal
12 Constitution as a sale in interstate or foreign commerce. For
13 purposes of determining the local governmental unit whose tax
14 is applicable under Section 2-5(32) of the Retailers'
15 Occupation Tax Act, a retail sale by a lessor is a sale at
16 retail at the place where leased tangible personal property
17 is located.
18 Nothing in this Section shall be construed to authorize a
19 municipality to impose a tax upon the privilege of engaging
20 in any business which under the constitution of the United
21 States may not be made the subject of taxation by this State.
22 When certifying the amount of a monthly disbursement to a
23 municipality under this Section, the Department shall
24 increase or decrease the amount by an amount necessary to
25 offset any misallocation of previous disbursements. The
26 offset amount shall be the amount erroneously disbursed
27 within the previous 6 months from the time a misallocation is
28 discovered.
29 As used in this Section, "municipal" and "municipality"
30 means a city, village, or incorporated town, including an
31 incorporated town that has superseded a civil township.
32 (Source: P.A. 88-334; 89-399, eff. 8-20-95.)
33 Section 99. Effective date. This Act takes effect upon
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1 becoming law.