Public Act 90-0415 of the 90th General Assembly
Public Act 90-0415
SB677 Enrolled LRB9001431KDcc
AN ACT in relation to taxes, amending named Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Section 18-165 as follows:
(35 ILCS 200/18-165)
Sec. 18-165. Abatement of taxes.
(a) Any taxing district, upon a majority vote of its
governing authority, may, after the determination of the
assessed valuation of its property, order the clerk of that
county to abate any portion of its taxes on the following
types of property:
(1) Commercial and industrial.
(A) The property of any commercial or
industrial firm, including but not limited to the
property of any firm that is used for collecting,
separating, storing, or processing recyclable
materials, locating within the taxing district
during the immediately preceding year from another
state, territory, or country, or having been newly
created within this State during the immediately
preceding year, or expanding an existing facility.
The abatement shall not exceed a period of 10 years
and the aggregate amount of abated taxes for all
taxing districts combined shall not exceed
$4,000,000 $3,000,000; or
(B) The property of any commercial or
industrial development of at least 500 acres having
been created within the taxing district. The
abatement shall not exceed a period of 20 years and
the aggregate amount of abated taxes for all taxing
districts combined shall not exceed $12,000,000.
(C) The property of any commercial or
industrial firm currently located in the taxing
district that expands a facility or its number of
employees. The abatement shall not exceed a period
of 10 years and the aggregate amount of abated taxes
for all taxing districts combined shall not exceed
$4,000,000. The abatement period may be renewed at
the option of the taxing districts.
(2) Horse racing. Any property in the taxing
district which is used for the racing of horses and upon
which capital improvements consisting of expansion,
improvement or replacement of existing facilities have
been made since July 1, 1987. The combined abatements
for such property from all taxing districts in any county
shall not exceed $5,000,000 annually and shall not exceed
a period of 10 years.
(3) Auto racing. Any property designed exclusively
for the racing of motor vehicles which became subject to
property taxation after September 24, 1984 and is located
within a county with 225,000 or more but less than
300,000 inhabitants. Such abatement shall not exceed a
period of 10 years.
(b) Upon a majority vote of its governing authority, any
municipality may, after the determination of the assessed
valuation of its property, order the county clerk to abate
any portion of its taxes on any property that is located
within the corporate limits of the municipality in accordance
with Section 8-3-18 of the Illinois Municipal Code.
(Source: P.A. 87-17; 87-477; 87-895; 88-389; 88-455; 88-657,
eff. 1-1-95; 88-670, eff. 12-2-94; 89-561, eff. 1-1-97.)
Section 10. The Counties Code is amended by adding
Section 5-1008.5 as follows:
(55 ILCS 5/5-1008.5 new)
Sec. 5-1008.5. Use and occupation taxes.
(a) The Rock Island County Board may adopt a resolution
that authorizes a referendum on the question of whether the
county shall be authorized to impose a retailers' occupation
tax, a service occupation tax, and a use tax at a rate of 1/4
of 1% on behalf of the economic development activities of
Rock Island County and communities located within the county.
The county board shall certify the question to the proper
election authorities who shall submit the question to the
voters of the county at the next regularly scheduled election
in accordance with the general election law. The question
shall be in substantially the following form:
Shall Rock Island County be authorized to impose a
retailers' occupation tax, a service occupation tax, and
a use tax at the rate of 1/4 of 1% for the sole purpose
of economic development activities, including creation
and retention of job opportunities, support of affordable
housing opportunities, and enhancement of quality of life
improvements?
Votes shall be recorded as "yes" or "no". If a majority
of all votes cast on the proposition are in favor of the
proposition, the county is authorized to impose the tax.
(b) The county shall impose the retailers' occupation
tax upon all persons engaged in the business of selling
tangible personal property at retail in the county, at the
rate approved by referendum, on the gross receipts from the
sales made in the course of those businesses within the
county. This additional tax may not be imposed on the sale of
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
soft drinks, and food that has been prepared for immediate
consumption) and prescription and non-prescription medicines,
drugs, medical appliances and insulin, urine testing
materials, syringes, and needles used by diabetics. The tax
imposed under this Section and all civil penalties that may
be assessed as an incident of the tax shall be collected and
enforced by the Department of Revenue. The Department has
full power to administer and enforce this Section; to collect
all taxes and penalties so collected in the manner provided
in this Section; and to determine all rights to credit
memoranda arising on account of the erroneous payment of tax
or penalty under this Section. In the administration of, and
compliance with, this Section, the Department and persons who
are subject to this Section shall (i) have the same rights,
remedies, privileges, immunities, powers and duties, (ii) be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms,
and (iii) employ the same modes of procedure as are
prescribed in Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j,
1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
other than the State rate of tax), 2-15 through 2-70, 2a, 2b,
2c, 3 (except as to the disposition of taxes and penalties
collected and provisions related to quarter monthly
payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l,
6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions
were set forth in this subsection.
Persons subject to any tax imposed under this subsection
may reimburse themselves for their seller's tax liability by
separately stating the tax as an additional charge, which
charge may be stated in combination, in a single amount, with
State taxes that sellers are required to collect, in
accordance with bracket schedules prescribed by the
Department.
Whenever the Department determines that a refund should
be made under this subsection to a claimant instead of
issuing a credit memorandum, the Department shall notify the
State Comptroller, who shall cause the warrant to be drawn
for the amount specified, and to the person named, in the
notification from the Department. The refund shall be paid
by the State Treasurer out of the tax fund referenced under
paragraph (g) of this Section.
If a tax is imposed under this subsection (b), a tax
shall also be imposed at the same rate under subsections (c)
and (d) of this Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale, by a
producer of coal or another mineral mined in Illinois, is a
sale at retail at the place where the coal or other mineral
mined in Illinois is extracted from the earth. This
paragraph does not apply to coal or another mineral when it
is delivered or shipped by the seller to the purchaser at a
point outside Illinois so that the sale is exempt under the
federal Constitution as a sale in interstate or foreign
commerce.
Nothing in this Section shall be construed to authorize
the county to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by this State.
(c) If a tax has been imposed under subsection (b), a
service occupation tax shall also be imposed at the same rate
upon all persons engaged, in the county, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the county as an incident to a sale of service. This
additional tax may not be imposed on the sale of food for
human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft
drinks, and food that has been prepared for immediate
consumption) and prescription and non-prescription medicines,
drugs, medical appliances and insulin, urine testing
materials, syringes, and needles used by diabetics. The tax
imposed under this subsection and all civil penalties that
may be assessed as an incident of the tax shall be collected
and enforced by the Department of Revenue. The Department has
full power to administer and enforce this paragraph; to
collect all taxes and penalties due under this Section; to
dispose of taxes and penalties so collected in the manner
provided in this Section; and to determine all rights to
credit memoranda arising on account of the erroneous payment
of tax or penalty under this Section. In the administration
of, and compliance with this paragraph, the Department and
persons who are subject to this paragraph shall (i) have the
same rights, remedies, privileges, immunities, powers, and
duties, (ii) be subject to the same conditions, restrictions,
limitations, penalties, exclusions, exemptions, and
definitions of terms, and (iii) employ the same modes of
procedure as are prescribed in Sections 2 (except that the
reference to State in the definition of supplier maintaining
a place of business in this State shall mean the county), 2a,
2b, 3 through 3-55 (in respect to all provisions other than
the State rate of tax), 4 (except that the reference to the
State shall be to the county), 5, 7, 8 (except that the
jurisdiction to which the tax shall be a debt to the extent
indicated in that Section 8 shall be the county), 9 (except
as to the disposition of taxes and penalties collected, and
except that the returned merchandise credit for this tax may
not be taken against any State tax), 11, 12 (except the
reference to Section 2b of the Retailers' Occupation Tax
Act), 13 (except that any reference to the State shall mean
the county), 15, 16, 17, 18, 19 and 20 of the Service
Occupation Tax Act and Section 3-7 of the Uniform Penalty and
Interest Act, as fully as if those provisions were set forth
in this subsection.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as
an additional charge, which charge may be stated in
combination, in a single amount, with State tax that
servicemen are authorized to collect under the Service Use
Tax Act, in accordance with bracket schedules prescribed by
the Department.
Whenever the Department determines that a refund should
be made under this subsection to a claimant instead of
issuing a credit memorandum, the Department shall notify the
State Comptroller, who shall cause the warrant to be drawn
for the amount specified, and to the person named, in the
notification from the Department. The refund shall be paid
by the State Treasurer out of the tax fund referenced under
paragraph (g) of this Section.
Nothing in this paragraph shall be construed to authorize
the county to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by the State.
(d) If a tax has been imposed under subsection (b), a
use tax shall also be imposed at the same rate upon the
privilege of using, in the county, any item of tangible
personal property that is purchased outside the county at
retail from a retailer, and that is titled or registered at a
location within the county with an agency of this State's
government. This additional tax may not be imposed on the
sale of food for human consumption that is to be consumed off
the premises where it is sold (other than alcoholic
beverages, soft drinks, and food that has been prepared for
immediate consumption) and prescription and non-prescription
medicines, drugs, medical appliances and insulin, urine
testing materials, syringes, and needles used by diabetics.
"Selling price" is defined as in the Use Tax Act. The tax
shall be collected from persons whose Illinois address for
titling or registration purposes is given as being in the
county. The tax shall be collected by the Department of
Revenue for the county. The tax must be paid to the State, or
an exemption determination must be obtained from the
Department of Revenue, before the title or certificate of
registration for the property may be issued. The tax or
proof of exemption may be transmitted to the Department by
way of the State agency with which, or the State officer with
whom, the tangible personal property must be titled or
registered if the Department and the State agency or State
officer determine that this procedure will expedite the
processing of applications for title or registration.
The Department has full power to administer and enforce
this paragraph; to collect all taxes, penalties, and interest
due under this Section; to dispose of taxes, penalties, and
interest so collected in the manner provided in this Section;
and to determine all rights to credit memoranda or refunds
arising on account of the erroneous payment of tax, penalty,
or interest under this Section. In the administration of, and
compliance with, this subsection, the Department and persons
who are subject to this paragraph shall (i) have the same
rights, remedies, privileges, immunities, powers, and duties,
(ii) be subject to the same conditions, restrictions,
limitations, penalties, exclusions, exemptions, and
definitions of terms, and (iii) employ the same modes of
procedure as are prescribed in Sections 2 (except the
definition of "retailer maintaining a place of business in
this State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a,
4, 6, 7, 8 (except that the jurisdiction to which the tax
shall be a debt to the extent indicated in that Section 8
shall be the county), 9 (except provisions relating to
quarter monthly payments), 10, 11, 12, 12a, 12b, 13, 14, 15,
19, 20, 21, and 22 of the Use Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act, that are not inconsistent
with this paragraph, as fully as if those provisions were set
forth in this subsection.
Whenever the Department determines that a refund should
be made under this subsection to a claimant instead of
issuing a credit memorandum, the Department shall notify the
State Comptroller, who shall cause the order to be drawn for
the amount specified, and to the person named, in the
notification from the Department. The refund shall be paid by
the State Treasurer out of the tax fund referenced under
paragraph (g) of this Section.
(e) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (c), or (d)
of this Section and no additional registration shall be
required. A certificate issued under the Use Tax Act or the
Service Use Tax Act shall be applicable with regard to any
tax imposed under paragraph (c) of this Section.
(f) The results of any election authorizing a
proposition to impose a tax under this Section or effecting a
change in the rate of tax shall be certified by the proper
election authorities and filed with the Illinois Department
on or before the first day of October. In addition, an
ordinance imposing, discontinuing, or effecting a change in
the rate of tax under this Section shall be adopted and a
certified copy of the ordinance filed with the Department on
or before the first day of October. After proper receipt of
the certifications, the Department shall proceed to
administer and enforce this Section as of the first day of
January next following the adoption and filing.
(g) The Department of Revenue shall, upon collecting any
taxes and penalties as provided in this Section, pay the
taxes and penalties over to the State Treasurer as trustee
for the county. The taxes and penalties shall be held in a
trust fund outside the State Treasury. On or before the 25th
day of each calendar month, the Department of Revenue shall
prepare and certify to the Comptroller of the State of
Illinois the amount to be paid to the county, which shall be
the balance in the fund, less any amount determined by the
Department to be necessary for the payment of refunds. Within
10 days after receipt by the Comptroller of the certification
of the amount to be paid to the county, the Comptroller shall
cause an order to be drawn for payment for the amount in
accordance with the directions contained in the
certification. Amounts received from the tax imposed under
this Section shall be used only for the economic development
activities of the county and communities located within the
county.
(h) When certifying the amount of a monthly disbursement
to the county under this Section, the Department shall
increase or decrease the amounts by an amount necessary to
offset any miscalculation of previous disbursements. The
offset amount shall be the amount erroneously disbursed
within the previous 6 months from the time a miscalculation
is discovered.
(i) This Section may be cited as the Rock Island County
Use and Occupation Tax Law.
(70 ILCS 510/18.2 rep.)
Section 15. The Quad Cities Regional Economic
Development Authority Act, approved September 22, 1987, is
amended by repealing Section 18.2.
Section 99. Effective date. This Act takes effect upon
becoming law.