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90_SB0677enr
35 ILCS 200/18-165
Amends the Property Tax Code. Includes in the list of
commercial and industrial property that may receive a tax
abatement the property of any commercial or industrial firm
currently located in the taxing district with the intent of
expanding a facility or its number of employees. Provides
that the abatement shall not exceed a period of 10 years and
an aggregate amount of $10,000,000 for all taxing districts.
Increases the aggregate abatement for property of any
commercial or industrial firm locating within the taxing
district during the immediately preceding year from another
state, territory, or county, or newly created during the
immediately preceding year from $3,000,000 to $10,000,000.
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1 AN ACT in relation to taxes, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5 Section 18-165 as follows:
6 (35 ILCS 200/18-165)
7 Sec. 18-165. Abatement of taxes.
8 (a) Any taxing district, upon a majority vote of its
9 governing authority, may, after the determination of the
10 assessed valuation of its property, order the clerk of that
11 county to abate any portion of its taxes on the following
12 types of property:
13 (1) Commercial and industrial.
14 (A) The property of any commercial or
15 industrial firm, including but not limited to the
16 property of any firm that is used for collecting,
17 separating, storing, or processing recyclable
18 materials, locating within the taxing district
19 during the immediately preceding year from another
20 state, territory, or country, or having been newly
21 created within this State during the immediately
22 preceding year, or expanding an existing facility.
23 The abatement shall not exceed a period of 10 years
24 and the aggregate amount of abated taxes for all
25 taxing districts combined shall not exceed
26 $4,000,000 $3,000,000; or
27 (B) The property of any commercial or
28 industrial development of at least 500 acres having
29 been created within the taxing district. The
30 abatement shall not exceed a period of 20 years and
31 the aggregate amount of abated taxes for all taxing
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1 districts combined shall not exceed $12,000,000.
2 (C) The property of any commercial or
3 industrial firm currently located in the taxing
4 district that expands a facility or its number of
5 employees. The abatement shall not exceed a period
6 of 10 years and the aggregate amount of abated taxes
7 for all taxing districts combined shall not exceed
8 $4,000,000. The abatement period may be renewed at
9 the option of the taxing districts.
10 (2) Horse racing. Any property in the taxing
11 district which is used for the racing of horses and upon
12 which capital improvements consisting of expansion,
13 improvement or replacement of existing facilities have
14 been made since July 1, 1987. The combined abatements
15 for such property from all taxing districts in any county
16 shall not exceed $5,000,000 annually and shall not exceed
17 a period of 10 years.
18 (3) Auto racing. Any property designed exclusively
19 for the racing of motor vehicles which became subject to
20 property taxation after September 24, 1984 and is located
21 within a county with 225,000 or more but less than
22 300,000 inhabitants. Such abatement shall not exceed a
23 period of 10 years.
24 (b) Upon a majority vote of its governing authority, any
25 municipality may, after the determination of the assessed
26 valuation of its property, order the county clerk to abate
27 any portion of its taxes on any property that is located
28 within the corporate limits of the municipality in accordance
29 with Section 8-3-18 of the Illinois Municipal Code.
30 (Source: P.A. 87-17; 87-477; 87-895; 88-389; 88-455; 88-657,
31 eff. 1-1-95; 88-670, eff. 12-2-94; 89-561, eff. 1-1-97.)
32 Section 10. The Counties Code is amended by adding
33 Section 5-1008.5 as follows:
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1 (55 ILCS 5/5-1008.5 new)
2 Sec. 5-1008.5. Use and occupation taxes.
3 (a) The Rock Island County Board may adopt a resolution
4 that authorizes a referendum on the question of whether the
5 county shall be authorized to impose a retailers' occupation
6 tax, a service occupation tax, and a use tax at a rate of 1/4
7 of 1% on behalf of the economic development activities of
8 Rock Island County and communities located within the county.
9 The county board shall certify the question to the proper
10 election authorities who shall submit the question to the
11 voters of the county at the next regularly scheduled election
12 in accordance with the general election law. The question
13 shall be in substantially the following form:
14 Shall Rock Island County be authorized to impose a
15 retailers' occupation tax, a service occupation tax, and
16 a use tax at the rate of 1/4 of 1% for the sole purpose
17 of economic development activities, including creation
18 and retention of job opportunities, support of affordable
19 housing opportunities, and enhancement of quality of life
20 improvements?
21 Votes shall be recorded as "yes" or "no". If a majority
22 of all votes cast on the proposition are in favor of the
23 proposition, the county is authorized to impose the tax.
24 (b) The county shall impose the retailers' occupation
25 tax upon all persons engaged in the business of selling
26 tangible personal property at retail in the county, at the
27 rate approved by referendum, on the gross receipts from the
28 sales made in the course of those businesses within the
29 county. This additional tax may not be imposed on the sale of
30 food for human consumption that is to be consumed off the
31 premises where it is sold (other than alcoholic beverages,
32 soft drinks, and food that has been prepared for immediate
33 consumption) and prescription and non-prescription medicines,
34 drugs, medical appliances and insulin, urine testing
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1 materials, syringes, and needles used by diabetics. The tax
2 imposed under this Section and all civil penalties that may
3 be assessed as an incident of the tax shall be collected and
4 enforced by the Department of Revenue. The Department has
5 full power to administer and enforce this Section; to collect
6 all taxes and penalties so collected in the manner provided
7 in this Section; and to determine all rights to credit
8 memoranda arising on account of the erroneous payment of tax
9 or penalty under this Section. In the administration of, and
10 compliance with, this Section, the Department and persons who
11 are subject to this Section shall (i) have the same rights,
12 remedies, privileges, immunities, powers and duties, (ii) be
13 subject to the same conditions, restrictions, limitations,
14 penalties, exclusions, exemptions, and definitions of terms,
15 and (iii) employ the same modes of procedure as are
16 prescribed in Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j,
17 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
18 other than the State rate of tax), 2-15 through 2-70, 2a, 2b,
19 2c, 3 (except as to the disposition of taxes and penalties
20 collected and provisions related to quarter monthly
21 payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l,
22 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
23 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
24 Penalty and Interest Act, as fully as if those provisions
25 were set forth in this subsection.
26 Persons subject to any tax imposed under this subsection
27 may reimburse themselves for their seller's tax liability by
28 separately stating the tax as an additional charge, which
29 charge may be stated in combination, in a single amount, with
30 State taxes that sellers are required to collect, in
31 accordance with bracket schedules prescribed by the
32 Department.
33 Whenever the Department determines that a refund should
34 be made under this subsection to a claimant instead of
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1 issuing a credit memorandum, the Department shall notify the
2 State Comptroller, who shall cause the warrant to be drawn
3 for the amount specified, and to the person named, in the
4 notification from the Department. The refund shall be paid
5 by the State Treasurer out of the tax fund referenced under
6 paragraph (g) of this Section.
7 If a tax is imposed under this subsection (b), a tax
8 shall also be imposed at the same rate under subsections (c)
9 and (d) of this Section.
10 For the purpose of determining whether a tax authorized
11 under this Section is applicable, a retail sale, by a
12 producer of coal or another mineral mined in Illinois, is a
13 sale at retail at the place where the coal or other mineral
14 mined in Illinois is extracted from the earth. This
15 paragraph does not apply to coal or another mineral when it
16 is delivered or shipped by the seller to the purchaser at a
17 point outside Illinois so that the sale is exempt under the
18 federal Constitution as a sale in interstate or foreign
19 commerce.
20 Nothing in this Section shall be construed to authorize
21 the county to impose a tax upon the privilege of engaging in
22 any business that under the Constitution of the United States
23 may not be made the subject of taxation by this State.
24 (c) If a tax has been imposed under subsection (b), a
25 service occupation tax shall also be imposed at the same rate
26 upon all persons engaged, in the county, in the business of
27 making sales of service, who, as an incident to making those
28 sales of service, transfer tangible personal property within
29 the county as an incident to a sale of service. This
30 additional tax may not be imposed on the sale of food for
31 human consumption that is to be consumed off the premises
32 where it is sold (other than alcoholic beverages, soft
33 drinks, and food that 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 under this subsection and all civil penalties that
4 may be assessed as an incident of the tax shall be collected
5 and enforced by the Department of Revenue. The Department has
6 full power to administer and enforce this paragraph; to
7 collect all taxes and penalties due under this Section; to
8 dispose of taxes and penalties so collected in the manner
9 provided in this Section; and to determine all rights to
10 credit memoranda arising on account of the erroneous payment
11 of tax or penalty under this Section. In the administration
12 of, and compliance with this paragraph, the Department and
13 persons who are subject to this paragraph shall (i) have the
14 same rights, remedies, privileges, immunities, powers, and
15 duties, (ii) be subject to the same conditions, restrictions,
16 limitations, penalties, exclusions, exemptions, and
17 definitions of terms, and (iii) employ the same modes of
18 procedure as are prescribed in Sections 2 (except that the
19 reference to State in the definition of supplier maintaining
20 a place of business in this State shall mean the county), 2a,
21 2b, 3 through 3-55 (in respect to all provisions other than
22 the State rate of tax), 4 (except that the reference to the
23 State shall be to the county), 5, 7, 8 (except that the
24 jurisdiction to which the tax shall be a debt to the extent
25 indicated in that Section 8 shall be the county), 9 (except
26 as to the disposition of taxes and penalties collected, and
27 except that the returned merchandise credit for this tax may
28 not be taken against any State tax), 11, 12 (except the
29 reference to Section 2b of the Retailers' Occupation Tax
30 Act), 13 (except that any reference to the State shall mean
31 the county), 15, 16, 17, 18, 19 and 20 of the Service
32 Occupation Tax Act and Section 3-7 of the Uniform Penalty and
33 Interest Act, as fully as if those provisions were set forth
34 in this subsection.
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1 Persons subject to any tax imposed under the authority
2 granted in this subsection may reimburse themselves for their
3 serviceman's tax liability by separately stating the tax as
4 an additional charge, which charge may be stated in
5 combination, in a single amount, with State tax that
6 servicemen are authorized to collect under the Service Use
7 Tax Act, in accordance with bracket schedules prescribed by
8 the Department.
9 Whenever the Department determines that a refund should
10 be made under this subsection to a claimant instead of
11 issuing a credit memorandum, the Department shall notify the
12 State Comptroller, who shall cause the warrant to be drawn
13 for the amount specified, and to the person named, in the
14 notification from the Department. The refund shall be paid
15 by the State Treasurer out of the tax fund referenced under
16 paragraph (g) of this Section.
17 Nothing in this paragraph shall be construed to authorize
18 the county to impose a tax upon the privilege of engaging in
19 any business that under the Constitution of the United States
20 may not be made the subject of taxation by the State.
21 (d) If a tax has been imposed under subsection (b), a
22 use tax shall also be imposed at the same rate upon the
23 privilege of using, in the county, any item of tangible
24 personal property that is purchased outside the county at
25 retail from a retailer, and that is titled or registered at a
26 location within the county with an agency of this State's
27 government. This additional tax may not be imposed on the
28 sale of food for human consumption that is to be consumed off
29 the premises where it is sold (other than alcoholic
30 beverages, soft drinks, and food that has been prepared for
31 immediate consumption) and prescription and non-prescription
32 medicines, drugs, medical appliances and insulin, urine
33 testing materials, syringes, and needles used by diabetics.
34 "Selling price" is defined as in the Use Tax Act. The tax
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1 shall be collected from persons whose Illinois address for
2 titling or registration purposes is given as being in the
3 county. The tax shall be collected by the Department of
4 Revenue for the county. The tax must be paid to the State, or
5 an exemption determination must be obtained from the
6 Department of Revenue, before the title or certificate of
7 registration for the property may be issued. The tax or
8 proof of exemption may be transmitted to the Department by
9 way of the State agency with which, or the State officer with
10 whom, the tangible personal property must be titled or
11 registered if the Department and the State agency or State
12 officer determine that this procedure will expedite the
13 processing of applications for title or registration.
14 The Department has full power to administer and enforce
15 this paragraph; to collect all taxes, penalties, and interest
16 due under this Section; to dispose of taxes, penalties, and
17 interest so collected in the manner provided in this Section;
18 and to determine all rights to credit memoranda or refunds
19 arising on account of the erroneous payment of tax, penalty,
20 or interest under this Section. In the administration of, and
21 compliance with, this subsection, the Department and persons
22 who are subject to this paragraph shall (i) have the same
23 rights, remedies, privileges, immunities, powers, and duties,
24 (ii) be subject to the same conditions, restrictions,
25 limitations, penalties, exclusions, exemptions, and
26 definitions of terms, and (iii) employ the same modes of
27 procedure as are prescribed in Sections 2 (except the
28 definition of "retailer maintaining a place of business in
29 this State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a,
30 4, 6, 7, 8 (except that the jurisdiction to which the tax
31 shall be a debt to the extent indicated in that Section 8
32 shall be the county), 9 (except provisions relating to
33 quarter monthly payments), 10, 11, 12, 12a, 12b, 13, 14, 15,
34 19, 20, 21, and 22 of the Use Tax Act and Section 3-7 of the
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1 Uniform Penalty and Interest Act, that are not inconsistent
2 with this paragraph, as fully as if those provisions were set
3 forth in this subsection.
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 order to be drawn for
8 the amount specified, and to the person named, in the
9 notification from the Department. The refund shall be paid by
10 the State Treasurer out of the tax fund referenced under
11 paragraph (g) of this Section.
12 (e) A certificate of registration issued by the State
13 Department of Revenue to a retailer under the Retailers'
14 Occupation Tax Act or under the Service Occupation Tax Act
15 shall permit the registrant to engage in a business that is
16 taxed under the tax imposed under paragraphs (b), (c), or (d)
17 of this Section and no additional registration shall be
18 required. A certificate issued under the Use Tax Act or the
19 Service Use Tax Act shall be applicable with regard to any
20 tax imposed under paragraph (c) of this Section.
21 (f) The results of any election authorizing a
22 proposition to impose a tax under this Section or effecting a
23 change in the rate of tax shall be certified by the proper
24 election authorities and filed with the Illinois Department
25 on or before the first day of October. In addition, an
26 ordinance imposing, discontinuing, or effecting a change in
27 the rate of tax under this Section shall be adopted and a
28 certified copy of the ordinance filed with the Department on
29 or before the first day of October. After proper receipt of
30 the certifications, the Department shall proceed to
31 administer and enforce this Section as of the first day of
32 January next following the adoption and filing.
33 (g) The Department of Revenue shall, upon collecting any
34 taxes and penalties as provided in this Section, pay the
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1 taxes and penalties over to the State Treasurer as trustee
2 for the county. The taxes and penalties shall be held in a
3 trust fund outside the State Treasury. On or before the 25th
4 day of each calendar month, the Department of Revenue shall
5 prepare and certify to the Comptroller of the State of
6 Illinois the amount to be paid to the county, which shall be
7 the balance in the fund, less any amount determined by the
8 Department to be necessary for the payment of refunds. Within
9 10 days after receipt by the Comptroller of the certification
10 of the amount to be paid to the county, the Comptroller shall
11 cause an order to be drawn for payment for the amount in
12 accordance with the directions contained in the
13 certification. Amounts received from the tax imposed under
14 this Section shall be used only for the economic development
15 activities of the county and communities located within the
16 county.
17 (h) When certifying the amount of a monthly disbursement
18 to the county under this Section, the Department shall
19 increase or decrease the amounts by an amount necessary to
20 offset any miscalculation of previous disbursements. The
21 offset amount shall be the amount erroneously disbursed
22 within the previous 6 months from the time a miscalculation
23 is discovered.
24 (i) This Section may be cited as the Rock Island County
25 Use and Occupation Tax Law.
26 (70 ILCS 510/18.2 rep.)
27 Section 15. The Quad Cities Regional Economic
28 Development Authority Act, approved September 22, 1987, is
29 amended by repealing Section 18.2.
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.