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90_SB0374eng
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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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(i)(2) of the Internal Revenue Code purchased by a
10 lessor who has elected, under Section 2-5(32) of the
11 Retailers' Occupation Tax Act, to pay retailers' occupation
12 tax based on the lessor's gross receipts from the lease of
13 the equipment in this State to a lessee for his or her use
14 and not for the purpose of sublease. This provision shall
15 not be construed to impose any liability upon a lessee.
16 The exemption granted by this Section shall be limited to
17 50% of the tax that would otherwise have been due for
18 property delivered to the lessor in this State before July 1,
19 1998; and 75% of the tax that would otherwise have been due
20 for property delivered to the lessor in this State during the
21 period of July 1, 1998 through June 30, 1999. The provisions
22 of this paragraph shall be exempt from the provisions of
23 Section 3-90.
24 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
25 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
26 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
27 eff. 8-9-96; revised 8-21-96.)
28 Section 10. The Retailers' Occupation Tax Act is amended
29 by changing Section 2-5 as follows:
30 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
31 Sec. 2-5. Exemptions. Gross receipts from proceeds from
32 the sale of the following tangible personal property are
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1 exempt from the tax imposed by this Act:
2 (1) Farm chemicals.
3 (2) Farm machinery and equipment, both new and used,
4 including that manufactured on special order, certified by
5 the purchaser to be used primarily for production agriculture
6 or State or federal agricultural programs, including
7 individual replacement parts for the machinery and equipment,
8 and including machinery and equipment purchased for lease,
9 but excluding motor vehicles required to be registered under
10 the Illinois Vehicle Code.
11 (3) Distillation machinery and equipment, sold as a unit
12 or kit, assembled or installed by the retailer, certified by
13 the user to be used only for the production of ethyl alcohol
14 that will be used for consumption as motor fuel or as a
15 component of motor fuel for the personal use of the user, and
16 not subject to sale or resale.
17 (4) Graphic arts machinery and equipment, including
18 repair and replacement parts, both new and used, and
19 including that manufactured on special order or purchased for
20 lease, certified by the purchaser to be used primarily for
21 graphic arts production.
22 (5) A motor vehicle of the first division, a motor
23 vehicle of the second division that is a self-contained motor
24 vehicle designed or permanently converted to provide living
25 quarters for recreational, camping, or travel use, with
26 direct walk through access to the living quarters from the
27 driver's seat, or a motor vehicle of the second division that
28 is of the van configuration designed for the transportation
29 of not less than 7 nor more than 16 passengers, as defined in
30 Section 1-146 of the Illinois Vehicle Code, that is used for
31 automobile renting, as defined in the Automobile Renting
32 Occupation and Use Tax Act.
33 (6) Personal property sold by a teacher-sponsored
34 student organization affiliated with an elementary or
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1 secondary school located in Illinois.
2 (7) Proceeds of that portion of the selling price of a
3 passenger car the sale of which is subject to the Replacement
4 Vehicle Tax.
5 (8) Personal property sold to an Illinois county fair
6 association for use in conducting, operating, or promoting
7 the county fair.
8 (9) Personal property sold to a not-for-profit music or
9 dramatic arts organization that establishes, by proof
10 required by the Department by rule, that it has received an
11 exemption under Section 501(c) (3) of the Internal Revenue
12 Code and that is organized and operated for the presentation
13 of live public performances of musical or theatrical works on
14 a regular basis.
15 (10) Personal property sold by a corporation, society,
16 association, foundation, institution, or organization, other
17 than a limited liability company, that is organized and
18 operated as a not-for-profit service enterprise for the
19 benefit of persons 65 years of age or older if the personal
20 property was not purchased by the enterprise for the purpose
21 of resale by the enterprise.
22 (11) Personal property sold to a governmental body, to a
23 corporation, society, association, foundation, or institution
24 organized and operated exclusively for charitable, religious,
25 or educational purposes, or to a not-for-profit corporation,
26 society, association, foundation, institution, or
27 organization that has no compensated officers or employees
28 and that is organized and operated primarily for the
29 recreation of persons 55 years of age or older. A limited
30 liability company may qualify for the exemption under this
31 paragraph only if the limited liability company is organized
32 and operated exclusively for educational purposes. On and
33 after July 1, 1987, however, no entity otherwise eligible for
34 this exemption shall make tax-free purchases unless it has an
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1 active identification number issued by the Department.
2 (12) Personal property sold to interstate carriers for
3 hire for use as rolling stock moving in interstate commerce
4 or to lessors under leases of one year or longer executed or
5 in effect at the time of purchase by interstate carriers for
6 hire for use as rolling stock moving in interstate commerce
7 and equipment operated by a telecommunications provider,
8 licensed as a common carrier by the Federal Communications
9 Commission, which is permanently installed in or affixed to
10 aircraft moving in interstate commerce.
11 (13) Proceeds from sales to owners, lessors, or shippers
12 of tangible personal property that is utilized by interstate
13 carriers for hire for use as rolling stock moving in
14 interstate commerce and equipment operated by a
15 telecommunications provider, licensed as a common carrier by
16 the Federal Communications Commission, which is permanently
17 installed in or affixed to aircraft moving in interstate
18 commerce.
19 (14) Machinery and equipment that will be used by the
20 purchaser, or a lessee of the purchaser, primarily in the
21 process of manufacturing or assembling tangible personal
22 property for wholesale or retail sale or lease, whether the
23 sale or lease is made directly by the manufacturer or by some
24 other person, whether the materials used in the process are
25 owned by the manufacturer or some other person, or whether
26 the sale or lease is made apart from or as an incident to the
27 seller's engaging in the service occupation of producing
28 machines, tools, dies, jigs, patterns, gauges, or other
29 similar items of no commercial value on special order for a
30 particular purchaser.
31 (15) Proceeds of mandatory service charges separately
32 stated on customers' bills for purchase and consumption of
33 food and beverages, to the extent that the proceeds of the
34 service charge are in fact turned over as tips or as a
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1 substitute for tips to the employees who participate directly
2 in preparing, serving, hosting or cleaning up the food or
3 beverage function with respect to which the service charge is
4 imposed.
5 (16) Petroleum products sold to a purchaser if the
6 seller is prohibited by federal law from charging tax to the
7 purchaser.
8 (17) Tangible personal property sold to a common carrier
9 by rail that receives the physical possession of the property
10 in Illinois and that transports the property, or shares with
11 another common carrier in the transportation of the property,
12 out of Illinois on a standard uniform bill of lading showing
13 the seller of the property as the shipper or consignor of the
14 property to a destination outside Illinois, for use outside
15 Illinois.
16 (18) Legal tender, currency, medallions, or gold or
17 silver coinage issued by the State of Illinois, the
18 government of the United States of America, or the government
19 of any foreign country, and bullion.
20 (19) Oil field exploration, drilling, and production
21 equipment, including (i) rigs and parts of rigs, rotary rigs,
22 cable tool rigs, and workover rigs, (ii) pipe and tubular
23 goods, including casing and drill strings, (iii) pumps and
24 pump-jack units, (iv) storage tanks and flow lines, (v) any
25 individual replacement part for oil field exploration,
26 drilling, and production equipment, and (vi) machinery and
27 equipment purchased for lease; but excluding motor vehicles
28 required to be registered under the Illinois Vehicle Code.
29 (20) Photoprocessing machinery and equipment, including
30 repair and replacement parts, both new and used, including
31 that manufactured on special order, certified by the
32 purchaser to be used primarily for photoprocessing, and
33 including photoprocessing machinery and equipment purchased
34 for lease.
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1 (21) Coal exploration, mining, offhighway hauling,
2 processing, maintenance, and reclamation equipment, including
3 replacement parts and equipment, and including equipment
4 purchased for lease, but excluding motor vehicles required to
5 be registered under the Illinois Vehicle Code.
6 (22) Fuel and petroleum products sold to or used by an
7 air carrier, certified by the carrier to be used for
8 consumption, shipment, or storage in the conduct of its
9 business as an air common carrier, for a flight destined for
10 or returning from a location or locations outside the United
11 States without regard to previous or subsequent domestic
12 stopovers.
13 (23) A transaction in which the purchase order is
14 received by a florist who is located outside Illinois, but
15 who has a florist located in Illinois deliver the property to
16 the purchaser or the purchaser's donee in Illinois.
17 (24) Fuel consumed or used in the operation of ships,
18 barges, or vessels that are used primarily in or for the
19 transportation of property or the conveyance of persons for
20 hire on rivers bordering on this State if the fuel is
21 delivered by the seller to the purchaser's barge, ship, or
22 vessel while it is afloat upon that bordering river.
23 (25) A motor vehicle sold in this State to a nonresident
24 even though the motor vehicle is delivered to the nonresident
25 in this State, if the motor vehicle is not to be titled in
26 this State, and if a driveaway decal permit is issued to the
27 motor vehicle as provided in Section 3-603 of the Illinois
28 Vehicle Code or if the nonresident purchaser has vehicle
29 registration plates to transfer to the motor vehicle upon
30 returning to his or her home state. The issuance of the
31 driveaway decal permit or having the out-of-state
32 registration plates to be transferred is prima facie evidence
33 that the motor vehicle will not be titled in this State.
34 (26) Semen used for artificial insemination of livestock
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1 for direct agricultural production.
2 (27) Horses, or interests in horses, registered with and
3 meeting the requirements of any of the Arabian Horse Club
4 Registry of America, Appaloosa Horse Club, American Quarter
5 Horse Association, United States Trotting Association, or
6 Jockey Club, as appropriate, used for purposes of breeding or
7 racing for prizes.
8 (28) Computers and communications equipment utilized
9 for any hospital purpose and equipment used in the diagnosis,
10 analysis, or treatment of hospital patients sold to a lessor
11 who leases the equipment, under a lease of one year or longer
12 executed or in effect at the time of the purchase, to a
13 hospital that has been issued an active tax exemption
14 identification number by the Department under Section 1g of
15 this Act.
16 (29) Personal property sold to a lessor who leases the
17 property, under a lease of one year or longer executed or in
18 effect at the time of the purchase, to a governmental body
19 that has been issued an active tax exemption identification
20 number by the Department under Section 1g of this Act.
21 (30) Beginning with taxable years ending on or after
22 December 31, 1995 and ending with taxable years ending on or
23 before December 31, 2004, personal property that is donated
24 for disaster relief to be used in a State or federally
25 declared disaster area in Illinois or bordering Illinois by a
26 manufacturer or retailer that is registered in this State to
27 a corporation, society, association, foundation, or
28 institution that has been issued a sales tax exemption
29 identification number by the Department that assists victims
30 of the disaster who reside within the declared disaster area.
31 (31) Beginning with taxable years ending on or after
32 December 31, 1995 and ending with taxable years ending on or
33 before December 31, 2004, personal property that is used in
34 the performance of infrastructure repairs in this State,
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1 including but not limited to municipal roads and streets,
2 access roads, bridges, sidewalks, waste disposal systems,
3 water and sewer line extensions, water distribution and
4 purification facilities, storm water drainage and retention
5 facilities, and sewage treatment facilities, resulting from a
6 State or federally declared disaster in Illinois or bordering
7 Illinois when such repairs are initiated on facilities
8 located in the declared disaster area within 6 months after
9 the disaster.
10 (32) Qualified technological equipment as defined in
11 Section 168(i)(2) of the Internal Revenue Code sold to a
12 lessor who has elected to pay the tax imposed under this Act
13 based on the lessor's gross receipts from the lease of the
14 equipment in this State to a lessee for his or her use and
15 not for the purpose of sublease. This election may be made
16 by the issuance of an exemption certificate to the seller of
17 the equipment indicating the lessor's registration number
18 under this Act and certifying that the lessor elects to pay
19 retailers' occupation tax measured by the gross receipts from
20 the lease of that equipment. If this election is made, the
21 gross receipts of each lease payment will be deemed to be
22 receipts from sales at retail for purposes of this Act.
23 As used in this Section, "lease" means an operating or
24 true lease. An operating or true lease is a lease under
25 which, for federal income tax purposes, the lessor is
26 considered to be the owner of the leased property. For
27 federal income tax purposes, a lessor is considered to be the
28 owner of the property if the lessor is permitted to claim a
29 depreciation expense deduction for the property. The amount
30 of retailers' occupation tax imposed under this Act shall be
31 reduced by an amount equal to the percentage limitation of
32 the exemption for use tax granted under Section 3-5(26) of
33 the Use Tax Act, for property subject to the limitation. The
34 gross receipts from the sale or lease of property for which
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1 this election has been made shall be subject to the tax
2 imposed by this Act on any subsequent sale or lease in this
3 State. Lessors shall be subject to the tax imposed under the
4 Use Tax Act based on the fair market value of any property
5 returned to the lessor at the termination of a lease if the
6 property is used for any purpose other than the further sale
7 or lease of the property. The provisions of this paragraph
8 shall be exempt from the provisions of Section 2-70.
9 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
10 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
11 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
12 eff. 8-9-96; revised 8-21-96.)
13 Section 15. The Counties Code is amended by changing
14 Sections 5-1006 and 5-1006.5 as follows:
15 (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
16 Sec. 5-1006. Home Rule County Retailers' Occupation Tax.
17 Any county that is a home rule unit may impose a tax upon all
18 persons engaged in the business of selling tangible personal
19 property, other than an item of tangible personal property
20 titled or registered with an agency of this State's
21 government, at retail in the county on the gross receipts
22 from such sales made in the course of their business. If
23 imposed, this tax shall only be imposed in 1/4% increments.
24 On and after September 1, 1991, this additional tax may not
25 be imposed on the sales of food for human consumption which
26 is to be consumed off the premises where it is sold (other
27 than alcoholic beverages, soft drinks and food which has been
28 prepared for immediate consumption) and prescription and
29 nonprescription medicines, drugs, medical appliances and
30 insulin, urine testing materials, syringes and needles used
31 by diabetics. The tax imposed by a home rule county pursuant
32 to this Section and all civil penalties that may be assessed
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1 as an incident thereof shall be collected and enforced by the
2 State Department of Revenue. The certificate of registration
3 that is issued by the Department to a retailer under the
4 Retailers' Occupation Tax Act shall permit the retailer to
5 engage in a business that is taxable under any ordinance or
6 resolution enacted pursuant to this Section without
7 registering separately with the Department under such
8 ordinance or resolution or under this Section. The
9 Department shall have full power to administer and enforce
10 this Section; to collect all taxes and penalties due
11 hereunder; to dispose of taxes and penalties so collected in
12 the manner hereinafter provided; and to determine all rights
13 to credit memoranda arising on account of the erroneous
14 payment of tax or penalty hereunder. In the administration
15 of, and compliance with, this Section, the Department and
16 persons who are subject to this Section shall have the same
17 rights, remedies, privileges, immunities, powers and duties,
18 and be subject to the same conditions, restrictions,
19 limitations, penalties and definitions of terms, and employ
20 the same modes of procedure, as are prescribed in Sections 1,
21 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to
22 all provisions therein other than the State rate of tax), 4,
23 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b,
24 6c, 7, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation
25 Tax Act and Section 3-7 of the Uniform Penalty and Interest
26 Act, as fully as if those provisions were set forth herein.
27 No tax may be imposed by a home rule county pursuant to
28 this Section unless the county also imposes a tax at the same
29 rate pursuant to Section 5-1007.
30 Persons subject to any tax imposed pursuant to the
31 authority granted in this Section may reimburse themselves
32 for their seller's tax liability hereunder by separately
33 stating such tax as an additional charge, which charge may be
34 stated in combination, in a single amount, with State tax
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1 which sellers are required to collect under the Use Tax Act,
2 pursuant to such bracket schedules as the Department may
3 prescribe.
4 Whenever the Department determines that a refund should
5 be made under this Section to a claimant instead of issuing a
6 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 home rule county retailers' occupation
11 tax fund.
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 counties, the counties to be those from which retailers
18 have paid taxes or penalties hereunder to the Department
19 during the second preceding calendar month. The amount to be
20 paid to each county shall be the amount (not including credit
21 memoranda) collected hereunder during the second preceding
22 calendar month by the Department plus an amount the
23 Department determines is necessary to offset any amounts that
24 were erroneously paid to a different taxing body, and not
25 including an amount equal to the amount of refunds made
26 during the second preceding calendar month by the Department
27 on behalf of such county, and not including any amount which
28 the Department determines is necessary to offset any amounts
29 which were payable to a different taxing body but were
30 erroneously paid to the county. Within 10 days after receipt,
31 by the Comptroller, of the disbursement certification to the
32 counties provided for in this Section to be given to the
33 Comptroller by the Department, the Comptroller shall cause
34 the orders to be drawn for the respective amounts in
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1 accordance with the directions contained in the
2 certification.
3 In addition to the disbursement required by the preceding
4 paragraph, an allocation shall be made in March of each year
5 to each county that received more than $500,000 in
6 disbursements under the preceding paragraph in the preceding
7 calendar year. The allocation shall be in an amount equal to
8 the average monthly distribution made to each such county
9 under the preceding paragraph during the preceding calendar
10 year (excluding the 2 months of highest receipts). The
11 distribution made in March of each year subsequent to the
12 year in which an allocation was made pursuant to this
13 paragraph and the preceding paragraph shall be reduced by the
14 amount allocated and disbursed under this paragraph in the
15 preceding calendar year. The Department shall prepare and
16 certify to the Comptroller for disbursement the allocations
17 made in accordance with this paragraph.
18 For the purpose of determining the local governmental
19 unit whose tax is applicable, a retail sale by a producer of
20 coal or other mineral mined in Illinois is a sale at retail
21 at the place where the coal or other mineral mined in
22 Illinois is extracted from the earth. This paragraph does
23 not apply to coal or other mineral when it is delivered or
24 shipped by the seller to the purchaser at a point outside
25 Illinois so that the sale is exempt under the United States
26 Constitution as a sale in interstate or foreign commerce. For
27 purposes of determining the local governmental unit whose tax
28 is applicable under Section 2-5(32) of the Retailers'
29 Occupation Tax Act, a retail sale by a lessor is a sale at
30 retail at the place where leased tangible personal property
31 is located.
32 Nothing in this Section shall be construed to authorize a
33 county to impose a tax upon the privilege of engaging in any
34 business which under the Constitution of the United States
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1 may not be made the subject of taxation by this State.
2 An ordinance or resolution imposing or discontinuing a
3 tax hereunder or effecting a change in the rate thereof shall
4 be adopted and a certified copy thereof filed with the
5 Department on or before the first day of June, whereupon the
6 Department shall proceed to administer and enforce this
7 Section as of the first day of September next following such
8 adoption and filing. Beginning January 1, 1992, an ordinance
9 or resolution imposing or discontinuing the tax hereunder or
10 effecting a change in the rate thereof shall be adopted and a
11 certified copy thereof filed with the Department on or before
12 the first day of July, whereupon the Department shall proceed
13 to administer and enforce this Section as of the first day of
14 October next following such adoption and filing. Beginning
15 January 1, 1993, an ordinance or resolution imposing or
16 discontinuing the tax hereunder or effecting a change in the
17 rate thereof shall be adopted and a certified copy thereof
18 filed with the Department on or before the first day of
19 October, whereupon the Department shall proceed to administer
20 and enforce this Section as of the first day of January next
21 following such adoption and filing.
22 When certifying the amount of a monthly disbursement to a
23 county under this Section, the Department shall increase or
24 decrease such amount by an amount necessary to offset any
25 misallocation of previous disbursements. The offset amount
26 shall be the amount erroneously disbursed within the previous
27 6 months from the time a misallocation is discovered.
28 This Section shall be known and may be cited as the "Home
29 Rule County Retailers' Occupation Tax Law".
30 (Source: P.A. 86-962; 86-1028; 86-1475; 87-205; 87-895.)
31 (55 ILCS 5/5-1006.5)
32 Sec. 5-1006.5. Special County Retailers' Occupation Tax
33 For Public Safety.
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1 (a) The county board of any county with a population in
2 excess of 180,000 inhabitants, as determined by the most
3 recent decennial census, may impose a tax upon all persons
4 engaged in the business of selling tangible personal
5 property, other than personal property titled or registered
6 with an agency of this State's government, at retail in the
7 county on the gross receipts from the sales made in the
8 course of business to provide revenue to be used exclusively
9 for public safety purposes in that county, if a proposition
10 for the tax has been submitted to the electors of that county
11 and approved by a majority of those voting on the question.
12 If imposed, this tax shall be imposed only in one-quarter
13 percent increments. By resolution, the county board may order
14 the proposition to be submitted at any election. The county
15 clerk shall certify the question to the proper election
16 authority, who shall submit the proposition at an election in
17 accordance with the general election law.
18 The proposition shall be in substantially the following
19 form:
20 "Shall (name of county) be authorized to impose a
21 public safety tax at the rate of .... upon all persons
22 engaged in the business of selling tangible personal
23 property at retail in the county on gross receipts from
24 the sales made in the course of their business to be used
25 for crime prevention, detention, and other public safety
26 purposes?"
27 Votes shall be recorded as Yes or No. If a majority of the
28 electors voting on the proposition vote in favor of it, the
29 county may impose the tax.
30 This additional tax may not be imposed on the sales of
31 food for human consumption that is to be consumed off the
32 premises where it is sold (other than alcoholic beverages,
33 soft drinks, and food which has been prepared for immediate
34 consumption) and prescription and non-prescription medicines,
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1 drugs, medical appliances and insulin, urine testing
2 materials, syringes, and needles used by diabetics. The tax
3 imposed by a county under this Section and all civil
4 penalties that may be assessed as an incident of the tax
5 shall be collected and enforced by the Illinois Department of
6 Revenue. The certificate of registration that is issued by
7 the Department to a retailer under the Retailers' Occupation
8 Tax Act shall permit the retailer to engage in a business
9 that is taxable without registering separately with the
10 Department under an ordinance or resolution under this
11 Section. The Department has full power to administer and
12 enforce this Section, to collect all taxes and penalties due
13 under this Section, to dispose of taxes and penalties so
14 collected in the manner provided in this Section, and to
15 determine all rights to credit memoranda arising on account
16 of the erroneous payment of a tax or penalty under this
17 Section. In the administration of and compliance with this
18 Section, the Department and persons who are subject to this
19 Section shall (i) have the same rights, remedies, privileges,
20 immunities, powers, and duties, (ii) be subject to the same
21 conditions, restrictions, limitations, penalties, and
22 definitions of terms, and (iii) employ the same modes of
23 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
24 1f, 1i, 1j, 2, 2-10 (in respect to all provisions contained
25 in those Sections other than the State rate of tax), 2-40,
26 2a, 2b, 2c, 3 (except provisions relating to transaction
27 returns and quarter monthly payments), 4, 5, 5a, 5b, 5c, 5d,
28 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10,
29 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act and
30 Section 3-7 of the Uniform Penalty and Interest Act as if
31 those provisions were set forth in this Section.
32 Persons subject to any tax imposed under the authority
33 granted in this Section may reimburse themselves for their
34 sellers' tax liability by separately stating the tax as an
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1 additional charge, which charge may be stated in combination,
2 in a single amount, with State tax which sellers are required
3 to collect under the Use Tax Act, pursuant to such bracketed
4 schedules as the Department may 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 the notification
10 from the Department. The refund shall be paid by the State
11 Treasurer out of the County Public Safety Retailers'
12 Occupation Tax Fund.
13 (b) If a tax has been imposed under subsection (a), a
14 service occupation tax shall also be imposed at the same rate
15 upon all persons engaged, in the county, in the business of
16 making sales of service, who, as an incident to making those
17 sales of service, transfer tangible personal property within
18 the county as an incident to a sale of service. This tax may
19 not be imposed on sales of food for human consumption that is
20 to be consumed off the premises where it is sold (other than
21 alcoholic beverages, soft drinks, and food prepared for
22 immediate consumption) and prescription and non-prescription
23 medicines, drugs, medical appliances and insulin, urine
24 testing materials, syringes, and needles used by diabetics.
25 The tax imposed under this subsection and all civil penalties
26 that may be assessed as an incident thereof shall be
27 collected and enforced by the Department of Revenue. The
28 Department has full power to administer and enforce this
29 subsection; to collect all taxes and penalties due hereunder;
30 to dispose of taxes and penalties so collected in the manner
31 hereinafter provided; and to determine all rights to credit
32 memoranda arising on account of the erroneous payment of tax
33 or penalty hereunder. In the administration of, and
34 compliance with this subsection, the Department and persons
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1 who are subject to this paragraph shall (i) have the same
2 rights, remedies, privileges, immunities, powers, and duties,
3 (ii) be subject to the same conditions, restrictions,
4 limitations, penalties, exclusions, exemptions, and
5 definitions of terms, and (iii) employ the same modes of
6 procedure as are prescribed in Sections 1a-1, 2 (except that
7 the reference to State in the definition of supplier
8 maintaining a place of business in this State shall mean the
9 county), 2a, 3 through 3-50 (in respect to all provisions
10 therein other than the State rate of tax), 4 (except that the
11 reference to the State shall be to the county), 5, 7, 8
12 (except that the jurisdiction to which the tax shall be a
13 debt to the extent indicated in that Section 8 shall be the
14 county), 9 (except as to the disposition of taxes and
15 penalties collected, and except that the returned merchandise
16 credit for this tax may not be taken against any State tax),
17 10, 11, 12 (except the reference therein to Section 2b of the
18 Retailers' Occupation Tax Act), 13 (except that any reference
19 to the State shall mean the county), the first paragraph of
20 Section 15, 16, 17, 18, 19 and 20 of the Service Occupation
21 Tax Act and Section 3-7 of the Uniform Penalty and Interest
22 Act, as fully as if those provisions were set forth herein.
23 Persons subject to any tax imposed under the authority
24 granted in this subsection may reimburse themselves for their
25 serviceman's tax liability by separately stating the tax as
26 an additional charge, which charge may be stated in
27 combination, in a single amount, with State tax that
28 servicemen are authorized to collect under the Service Use
29 Tax Act, in accordance with such bracket schedules as the
30 Department may prescribe.
31 Whenever the Department determines that a refund should
32 be made under this subsection to a claimant instead of
33 issuing a credit memorandum, the Department shall notify the
34 State Comptroller, who shall cause the warrant to be drawn
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1 for the amount specified, and to the person named, in the
2 notification from the Department. The refund shall be paid
3 by the State Treasurer out of the County Public Safety
4 Retailers' Occupation Fund.
5 Nothing in this subsection shall be construed to
6 authorize the county to impose a tax upon the privilege of
7 engaging in any business which under the Constitution of the
8 United States may not be made the subject of taxation by the
9 State.
10 (c) The Department shall immediately pay over to the
11 State Treasurer, Ex Officio, as trustee, all taxes and
12 penalties collected under this Section to be deposited into
13 the County Public Safety Retailers' Occupation Tax Fund,
14 which is created in the State treasury. On or before the
15 25th day of each calendar month, the Department shall prepare
16 and certify to the Comptroller the disbursement of stated
17 sums of money to the counties from which retailers have paid
18 taxes or penalties to the Department during the second
19 preceding calendar month. The amount to be paid to each
20 county shall be the amount (not including credit memoranda)
21 collected under this Section during the second preceding
22 calendar month by the Department plus an amount the
23 Department determines is necessary to offset any amounts that
24 were erroneously paid to a different taxing body, and not
25 including (i) an amount equal to the amount of refunds made
26 during the second preceding calendar month by the Department
27 on behalf of the county and (ii) any amount that the
28 Department determines is necessary to offset any amounts that
29 were payable to a different taxing body but were erroneously
30 paid to the county. Within 10 days after receipt by the
31 Comptroller of the disbursement certification to the counties
32 provided for in this Section to be given to the Comptroller
33 by the Department, the Comptroller shall cause the orders to
34 be drawn for the respective amounts in accordance with
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1 directions contained in the certification.
2 In addition to the disbursement required by the preceding
3 paragraph, an allocation shall be made in March of each year
4 to each county that received more than $500,000 in
5 disbursements under the preceding paragraph in the preceding
6 calendar year. The allocation shall be in an amount equal to
7 the average monthly distribution made to each such county
8 under the preceding paragraph during the preceding calendar
9 year (excluding the 2 months of highest receipts). The
10 distribution made in March of each year subsequent to the
11 year in which an allocation was made pursuant to this
12 paragraph and the preceding paragraph shall be reduced by the
13 amount allocated and disbursed under this paragraph in the
14 preceding calendar year. The Department shall prepare and
15 certify to the Comptroller for disbursement the allocations
16 made in accordance with this paragraph.
17 (d) For the purpose of determining the local
18 governmental unit whose tax is applicable, a retail sale by a
19 producer of coal or another mineral mined in Illinois is a
20 sale at retail at the place where the coal or other mineral
21 mined in Illinois is extracted from the earth. This
22 paragraph does not apply to coal or another mineral when it
23 is delivered or shipped by the seller to the purchaser at a
24 point outside Illinois so that the sale is exempt under the
25 United States Constitution as a sale in interstate or foreign
26 commerce. For purposes of determining the local governmental
27 unit whose tax is applicable under Section 2-5(32) of the
28 Retailers' Occupation Tax Act, a retail sale by a lessor is a
29 sale at retail at the place where leased tangible personal
30 property is located.
31 (e) Nothing in this Section shall be construed to
32 authorize a county to impose a tax upon the privilege of
33 engaging in any business that under the Constitution of the
34 United States may not be made the subject of taxation by this
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1 State.
2 (f) The results of any election authorizing a
3 proposition to impose a tax under this Section or effecting a
4 change in the rate of tax shall be certified by the county
5 clerk and filed with the Illinois Department of Revenue on or
6 before the first day of June. The Illinois Department of
7 Revenue shall then proceed to administer and enforce this
8 Section as of the first day of January next following the
9 filing.
10 (g) When certifying the amount of a monthly disbursement
11 to a county under this Section, the Department shall increase
12 or decrease the amounts by an amount necessary to offset any
13 miscalculation of previous disbursements. The offset amount
14 shall be the amount erroneously disbursed within the previous
15 6 months from the time a miscalculation is discovered.
16 (h) This Section may be cited as the "Special County
17 Occupation Tax For Public Safety Law".
18 (Source: P.A. 89-107, eff. 1-1-96.)
19 Section 20. The Illinois Municipal Code is amended by
20 changing Sections 8-11-1, 8-11-1.3, and 8-11-1.6 as follows:
21 (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
22 Sec. 8-11-1. The corporate authorities of a home rule
23 municipality may impose a tax upon all persons engaged in the
24 business of selling tangible personal property, other than an
25 item of tangible personal property titled or registered with
26 an agency of this State's government, at retail in the
27 municipality on the gross receipts from these sales made in
28 the course of such business. If imposed, the tax shall only
29 be imposed in 1/4% increments. On and after September 1,
30 1991, this additional tax may not be imposed on the sales of
31 food for human consumption that is to be consumed off the
32 premises where it is sold (other than alcoholic beverages,
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1 soft drinks and food that has been prepared for immediate
2 consumption) and prescription and nonprescription medicines,
3 drugs, medical appliances and insulin, urine testing
4 materials, syringes and needles used by diabetics. The tax
5 imposed by a home rule municipality under this Section and
6 all civil penalties that may be assessed as an incident of
7 the tax shall be collected and enforced by the State
8 Department of Revenue. The certificate of registration that
9 is issued by the Department to a retailer under the
10 Retailers' Occupation Tax Act shall permit the retailer to
11 engage in a business that is taxable under any ordinance or
12 resolution enacted pursuant to this Section without
13 registering separately with the Department under such
14 ordinance or resolution or under this Section. The
15 Department shall have full power to administer and enforce
16 this Section; to collect all taxes and penalties due
17 hereunder; to dispose of taxes and penalties so collected in
18 the manner hereinafter provided; and to determine all rights
19 to credit memoranda arising on account of the erroneous
20 payment of tax or penalty hereunder. In the administration
21 of, and compliance with, this Section the Department and
22 persons who are subject to this Section shall have the same
23 rights, remedies, privileges, immunities, powers and duties,
24 and be subject to the same conditions, restrictions,
25 limitations, penalties and definitions of terms, and employ
26 the same modes of procedure, as are prescribed in Sections 1,
27 1a, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all
28 provisions therein other than the State rate of tax), 2c, 3
29 (except as to the disposition of taxes and penalties
30 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
31 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
32 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
33 Penalty and Interest Act, as fully as if those provisions
34 were set forth herein.
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1 No tax may be imposed by a home rule municipality under
2 this Section unless the municipality also imposes a tax at
3 the same rate under Section 8-11-5 of this Act.
4 Persons subject to any tax imposed under the authority
5 granted in this Section may reimburse themselves for their
6 seller's tax liability hereunder by separately stating that
7 tax as an additional charge, which charge may be stated in
8 combination, in a single amount, with State tax which sellers
9 are required to collect under the Use Tax Act, pursuant to
10 such bracket schedules as the Department may 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 municipal retailers'
18 occupation tax fund.
19 The Department shall immediately 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 municipalities, the municipalities to be those from
25 which retailers have paid taxes or penalties hereunder to the
26 Department during the second preceding calendar month. The
27 amount to be paid to each municipality shall be the amount
28 (not including credit memoranda) collected hereunder during
29 the second preceding calendar month by the Department plus an
30 amount the Department determines is necessary to offset any
31 amounts that were erroneously paid to a different taxing
32 body, and not including an amount equal to the amount of
33 refunds made during the second preceding calendar month by
34 the Department on behalf of such municipality, and not
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1 including any amount that the Department determines is
2 necessary to offset any amounts that were payable to a
3 different taxing body but were erroneously paid to the
4 municipality. Within 10 days after receipt by the Comptroller
5 of the disbursement certification to the municipalities
6 provided for in this Section to be given to the Comptroller
7 by the Department, the Comptroller shall cause the orders to
8 be drawn for the respective amounts in accordance with the
9 directions contained in the certification.
10 In addition to the disbursement required by the preceding
11 paragraph and in order to mitigate delays caused by
12 distribution procedures, an allocation shall, if requested,
13 be made within 10 days after January 14, 1991, and in
14 November of 1991 and each year thereafter, to each
15 municipality that received more than $500,000 during the
16 preceding fiscal year, (July 1 through June 30) whether
17 collected by the municipality or disbursed by the Department
18 as required by this Section. Within 10 days after January 14,
19 1991, participating municipalities shall notify the
20 Department in writing of their intent to participate. In
21 addition, for the initial distribution, participating
22 municipalities shall certify to the Department the amounts
23 collected by the municipality for each month under its home
24 rule occupation and service occupation tax during the period
25 July 1, 1989 through June 30, 1990. The allocation within 10
26 days after January 14, 1991, shall be in an amount equal to
27 the monthly average of these amounts, excluding the 2 months
28 of highest receipts. The monthly average for the period of
29 July 1, 1990 through June 30, 1991 will be determined as
30 follows: the amounts collected by the municipality under its
31 home rule occupation and service occupation tax during the
32 period of July 1, 1990 through September 30, 1990, plus
33 amounts collected by the Department and paid to such
34 municipality through June 30, 1991, excluding the 2 months of
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1 highest receipts. The monthly average for each subsequent
2 period of July 1 through June 30 shall be an amount equal to
3 the monthly distribution made to each such municipality under
4 the preceding paragraph during this period, excluding the 2
5 months of highest receipts. The distribution made in
6 November 1991 and each year thereafter under this paragraph
7 and the preceding paragraph shall be reduced by the amount
8 allocated and disbursed under this paragraph in the preceding
9 period of July 1 through June 30. The Department shall
10 prepare and certify to the Comptroller for disbursement the
11 allocations made in accordance with this paragraph.
12 For the purpose of determining the local governmental
13 unit whose tax is applicable, a retail sale by a producer of
14 coal or other mineral mined in Illinois is a sale at retail
15 at the place where the coal or other mineral mined in
16 Illinois is extracted from the earth. This paragraph does
17 not apply to coal or other mineral when it is delivered or
18 shipped by the seller to the purchaser at a point outside
19 Illinois so that the sale is exempt under the United States
20 Constitution as a sale in interstate or foreign commerce. For
21 purposes of determining the local governmental unit whose tax
22 is applicable under Section 2-5(32) of the Retailers'
23 Occupation Tax Act, a retail sale by a lessor is a sale at
24 retail at the place where leased tangible personal property
25 is located.
26 Nothing in this Section shall be construed to authorize a
27 municipality to impose a tax upon the privilege of engaging
28 in any business which under the Constitution of the United
29 States may not be made the subject of taxation by this State.
30 An ordinance or resolution imposing or discontinuing a
31 tax hereunder or effecting a change in the rate thereof shall
32 be adopted and a certified copy thereof filed with the
33 Department on or before the first day of June, whereupon the
34 Department shall proceed to administer and enforce this
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1 Section as of the first day of September next following the
2 adoption and filing. Beginning January 1, 1992, an ordinance
3 or resolution imposing or discontinuing the tax hereunder or
4 effecting a change in the rate thereof shall be adopted and a
5 certified copy thereof filed with the Department on or before
6 the first day of July, whereupon the Department shall proceed
7 to administer and enforce this Section as of the first day of
8 October next following such adoption and filing. Beginning
9 January 1, 1993, an ordinance or resolution imposing or
10 discontinuing the tax hereunder or effecting a change in the
11 rate thereof shall be adopted and a certified copy thereof
12 filed with the Department on or before the first day of
13 October, whereupon the Department shall proceed to administer
14 and enforce this Section as of the first day of January next
15 following the adoption and filing. However, a municipality
16 located in a county with a population in excess of 3,000,000
17 that elected to become a home rule unit at the general
18 primary election in 1994 may adopt an ordinance or resolution
19 imposing the tax under this Section and file a certified copy
20 of the ordinance or resolution with the Department on or
21 before July 1, 1994. The Department shall then proceed to
22 administer and enforce this Section as of October 1, 1994.
23 When certifying the amount of a monthly disbursement to a
24 municipality under this Section, the Department shall
25 increase or decrease the 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 Any unobligated balance remaining in the Municipal
31 Retailers' Occupation Tax Fund on December 31, 1989, which
32 fund was abolished by Public Act 85-1135, and all receipts of
33 municipal tax as a result of audits of liability periods
34 prior to January 1, 1990, shall be paid into the Local
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1 Government Tax Fund for distribution as provided by this
2 Section prior to the enactment of Public Act 85-1135. All
3 receipts of municipal tax as a result of an assessment not
4 arising from an audit, for liability periods prior to January
5 1, 1990, shall be paid into the Local Government Tax Fund for
6 distribution before July 1, 1990, as provided by this Section
7 prior to the enactment of Public Act 85-1135; and on and
8 after July 1, 1990, all such receipts shall be distributed as
9 provided in Section 6z-18 of the State Finance Act.
10 As used in this Section, "municipal" and "municipality"
11 means a city, village or incorporated town, including an
12 incorporated town that has superseded a civil township.
13 This Section shall be known and may be cited as the Home
14 Rule Municipal Retailers' Occupation Tax Act.
15 (Source: P.A. 87-205; 87-435; 87-895; 88-603, eff. 9-1-94.)
16 (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
17 Sec. 8-11-1.3. The corporate authorities of a non-home
18 rule municipality with more than 130,000 but less than
19 2,000,000 inhabitants may impose a tax upon all persons
20 engaged in the business of selling tangible personal
21 property, other than on an item of tangible personal property
22 which is titled and registered by an agency of this State's
23 Government, at retail in the municipality at the rate of 1/2
24 of 1% for expenditure on public infrastructure as defined in
25 Section 8-11-1.2 if approved by referendum as provided in
26 Section 8-11-1.1, of the gross receipts from such sales made
27 in the course of such business. The tax imposed by a
28 municipality pursuant to this Section and all civil penalties
29 that may be assessed as an incident thereof shall be
30 collected and enforced by the State Department of Revenue.
31 The certificate of registration which is issued by the
32 Department to a retailer under the Retailers' Occupation Tax
33 Act shall permit such retailer to engage in a business which
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1 is taxable under any ordinance or resolution enacted pursuant
2 to this Section without registering separately with the
3 Department under such ordinance or resolution or under this
4 Section. The Department shall have full power to administer
5 and enforce this Section; to collect all taxes and penalties
6 due hereunder; to dispose of taxes and penalties so collected
7 in the manner hereinafter provided, and to determine all
8 rights to credit memoranda, arising on account of the
9 erroneous payment of tax or penalty hereunder. In the
10 administration of, and compliance with, this Section, the
11 Department and persons who are subject to this Section shall
12 have the same rights, remedies, privileges, immunities,
13 powers and duties, and be subject to the same conditions,
14 restrictions, limitations, penalties and definitions of
15 terms, and employ the same modes of procedure, as are
16 prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
17 through 2-65 (in respect to all provisions therein other than
18 the State rate of tax), 2c, 3 (except as to the disposition
19 of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e,
20 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
21 12 and 13 of the Retailers' Occupation Tax Act and Section
22 3-7 of the Uniform Penalty and Interest Act as fully as if
23 those provisions were set forth herein.
24 Persons subject to any tax imposed pursuant to the
25 authority granted in this Section may reimburse themselves
26 for their seller's tax liability hereunder by separately
27 stating such tax as an additional charge, which charge may be
28 stated in combination, in a single amount, with State tax
29 which sellers are required to collect under the Use Tax Act,
30 pursuant to such bracket schedules as the Department may
31 prescribe.
32 Whenever the Department determines that a refund should
33 be made under this Section to a claimant instead of issuing a
34 credit memorandum, the Department shall notify the State
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1 Comptroller, who shall cause the order to be drawn for the
2 amount specified, and to the person named, in such
3 notification from the Department. Such refund shall be paid
4 by the State Treasurer out of the non-home rule municipal
5 retailers' occupation tax fund.
6 The Department shall forthwith pay over to the State
7 Treasurer, ex officio, as trustee, all taxes and penalties
8 collected hereunder. On or before the 25th day of each
9 calendar month, the Department shall prepare and certify to
10 the Comptroller the disbursement of stated sums of money to
11 named municipalities, the municipalities to be those from
12 which retailers have paid taxes or penalties hereunder to the
13 Department during the second preceding calendar month. The
14 amount to be paid to each municipality shall be the amount
15 (not including credit memoranda) collected hereunder during
16 the second preceding calendar month by the Department plus an
17 amount the Department determines is necessary to offset any
18 amounts which were erroneously paid to a different taxing
19 body, and not including an amount equal to the amount of
20 refunds made during the second preceding calendar month by
21 the Department on behalf of such municipality, and not
22 including any amount which the Department determines is
23 necessary to offset any amounts which were payable to a
24 different taxing body but were erroneously paid to the
25 municipality. Within 10 days after receipt, by the
26 Comptroller, of the disbursement certification to the
27 municipalities, provided for in this Section to be given to
28 the Comptroller by the Department, the Comptroller shall
29 cause the orders to be drawn for the respective amounts in
30 accordance with the directions contained in such
31 certification.
32 For the purpose of determining the local governmental
33 unit whose tax is applicable, a retail sale, by a producer of
34 coal or other mineral mined in Illinois, is a sale at retail
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1 at the place where the coal or other mineral mined in
2 Illinois is extracted from the earth. This paragraph does
3 not apply to coal or other mineral when it is delivered or
4 shipped by the seller to the purchaser at a point outside
5 Illinois so that the sale is exempt under the Federal
6 Constitution as a sale in interstate or foreign commerce. For
7 purposes of determining the local governmental unit whose tax
8 is applicable under Section 2-5(32) of the Retailers'
9 Occupation Tax Act, a retail sale by a lessor is a sale at
10 retail at the place where leased tangible personal property
11 is located.
12 Nothing in this Section shall be construed to authorize a
13 municipality to impose a tax upon the privilege of engaging
14 in any business which under the constitution of the United
15 States may not be made the subject of taxation by this State.
16 When certifying the amount of a monthly disbursement to a
17 municipality under this Section, the Department shall
18 increase or decrease such amount by an amount necessary to
19 offset any misallocation of previous disbursements. The
20 offset amount shall be the amount erroneously disbursed
21 within the previous 6 months from the time a misallocation is
22 discovered.
23 As used in this Section, "municipal" and "municipality"
24 means a city, village or incorporated town, including an
25 incorporated town which has superseded a civil township.
26 This Section shall be known and may be cited as the
27 "Non-Home Rule Municipal Retailers' Occupation Tax Act".
28 (Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
29 (65 ILCS 5/8-11-1.6)
30 Sec. 8-11-1.6. Non-home rule municipal retailers
31 occupation tax; municipalities between 20,000 and 25,000. The
32 corporate authorities of a non-home rule municipality with a
33 population of more than 20,000 but less than 25,000 that has,
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1 prior to January 1, 1987, established a Redevelopment Project
2 Area that has been certified as a State Sales Tax Boundary
3 and has issued bonds or otherwise incurred indebtedness to
4 pay for costs in excess of $5,000,000, which is secured in
5 part by a tax increment allocation fund, in accordance with
6 the provisions of Division 11-74.4 of this Code may, by
7 passage of an ordinance, impose a tax upon all persons
8 engaged in the business of selling tangible personal
9 property, other than on an item of tangible personal property
10 that is titled and registered by an agency of this State's
11 Government, at retail in the municipality. This tax may not
12 be imposed on the sales of food for human consumption that is
13 to be consumed off the premises where it is sold (other than
14 alcoholic beverages, soft drinks, and food that has been
15 prepared for immediate consumption) and prescription and
16 nonprescription medicines, drugs, medical appliances and
17 insulin, urine testing materials, syringes, and needles used
18 by diabetics. If imposed, the tax shall only be imposed in
19 .25% increments of the gross receipts from such sales made in
20 the course of business. Any tax imposed by a municipality
21 under this Sec. and all civil penalties that may be assessed
22 as an incident thereof shall be collected and enforced by the
23 State Department of Revenue. An ordinance imposing a tax
24 hereunder or effecting a change in the rate thereof shall be
25 adopted and a certified copy thereof filed with the
26 Department on or before the first day of October, whereupon
27 the Department shall proceed to administer and enforce this
28 Section as of the first day of January next following such
29 adoption and filing. The certificate of registration that is
30 issued by the Department to a retailer under the Retailers'
31 Occupation Tax Act shall permit the retailer to engage in a
32 business that is taxable under any ordinance or resolution
33 enacted under this Section without registering separately
34 with the Department under the ordinance or resolution or
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1 under this Section. The Department shall have full power to
2 administer and enforce this Section, to collect all taxes and
3 penalties due hereunder, to dispose of taxes and penalties so
4 collected in the manner hereinafter provided, and to
5 determine all rights to credit memoranda, arising on account
6 of the erroneous payment of tax or penalty hereunder. In the
7 administration of, and compliance with this Section, the
8 Department and persons who are subject to this Section shall
9 have the same rights, remedies, privileges, immunities,
10 powers, and duties, and be subject to the same conditions,
11 restrictions, limitations, penalties, and definitions of
12 terms, and employ the same modes of procedure, as are
13 prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
14 through 2-65 (in respect to all provisions therein other than
15 the State rate of tax), 2c, 3 (except as to the disposition
16 of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e,
17 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
18 12 and 13 of the Retailers' Occupation Tax Act and Section
19 3-7 of the Uniform Penalty and Interest Act as fully as if
20 those provisions were set forth herein.
21 A tax may not be imposed by a municipality under this
22 Section unless the municipality also imposes a tax at the
23 same rate under Section 8-11-1.7 of this Act.
24 Persons subject to any tax imposed under the authority
25 granted in this Section, may reimburse themselves for their
26 seller's tax liability hereunder by separately stating the
27 tax as an additional charge, which charge may be stated in
28 combination, in a single amount, with State tax which sellers
29 are required to collect under the Use Tax Act, pursuant to
30 such bracket schedules as the Department may prescribe.
31 Whenever the Department determines that a refund should
32 be made under this Section to a claimant, instead of issuing
33 a credit memorandum, the Department shall notify the State
34 Comptroller, who shall cause the order to be drawn for the
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1 amount specified, and to the person named in the notification
2 from the Department. The refund shall be paid by the State
3 Treasurer out of the Non-Home Rule Municipal Retailers'
4 Occupation Tax Fund, which is hereby created.
5 The Department shall forthwith pay over to the State
6 Treasurer, ex officio, as trustee, all taxes and penalties
7 collected hereunder. On or before the 25th day of each
8 calendar month, the Department shall prepare and certify to
9 the Comptroller the disbursement of stated sums of money to
10 named municipalities, the municipalities to be those from
11 which retailers have paid taxes or penalties hereunder to the
12 Department during the second preceding calendar month. The
13 amount to be paid to each municipality shall be the amount
14 (not including credit memoranda) collected hereunder during
15 the second preceding calendar month by the Department plus an
16 amount the Department determines is necessary to offset any
17 amounts that were erroneously paid to a different taxing
18 body, and not including an amount equal to the amount of
19 refunds made during the second preceding calendar month by
20 the Department on behalf of the municipality, and not
21 including any amount that the Department determines is
22 necessary to offset any amounts that were payable to a
23 different taxing body but were erroneously paid to the
24 municipality. Within 10 days after receipt by the
25 Comptroller of the disbursement certification to the
26 municipalities provided for in this Section to be given to
27 the Comptroller by the Department, the Comptroller shall
28 cause the orders to be drawn for the respective amounts in
29 accordance with the directions contained in the
30 certification.
31 For the purpose of determining the local governmental
32 unit whose tax is applicable, a retail sale by a producer of
33 coal or other mineral mined in Illinois is a sale at retail
34 at the place where the coal or other mineral mined in
SB374 Engrossed -39- LRB9002207DNmbB
1 Illinois is extracted from the earth. This paragraph does
2 not apply to coal or other mineral when it is delivered or
3 shipped by the seller to the purchaser at a point outside
4 Illinois so that the sale is exempt under the federal
5 Constitution as a sale in interstate or foreign commerce. For
6 purposes of determining the local governmental unit whose tax
7 is applicable under Section 2-5(32) of the Retailers'
8 Occupation Tax Act, a retail sale by a lessor is a sale at
9 retail at the place where leased tangible personal property
10 is located.
11 Nothing in this Section shall be construed to authorize a
12 municipality to impose a tax upon the privilege of engaging
13 in any business which under the constitution of the United
14 States may not be made the subject of taxation by this State.
15 When certifying the amount of a monthly disbursement to a
16 municipality under this Section, the Department shall
17 increase or decrease the amount by an amount necessary to
18 offset any misallocation of previous disbursements. The
19 offset amount shall be the amount erroneously disbursed
20 within the previous 6 months from the time a misallocation is
21 discovered.
22 As used in this Section, "municipal" and "municipality"
23 means a city, village, or incorporated town, including an
24 incorporated town that has superseded a civil township.
25 (Source: P.A. 88-334; 89-399, eff. 8-20-95.)
26 Section 99. Effective date. This Act takes effect upon
27 becoming law.