Public Act 90-0552 of the 90th General Assembly
Public Act 90-0552
HB0581 Re-Enrolled LRB9001527DNmbA
AN ACT in relation to taxes.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 3. The Civil Administrative Code of Illinois is
amended by changing Section 39b51 as follows:
(20 ILCS 2505/39b51)
Sec. 39b51. Jobs Impact Committee and report. With
respect to the credits provided for by Sections 209 and 210
of the Illinois Income Tax Act, Section 3-50 of the Use Tax
Act, Section 2 of the Service Use Tax Act, Section 2 of the
Service Occupation Tax Act, and Section 2-45 of the
Retailers' Occupation Tax Act, there is hereby created a Jobs
Impact Committee which shall consist of the Director of the
Department of Revenue or such person or persons as he may
designate, and such representative or representatives as
shall be designated to serve on the Committee by the
Department of Commerce and Community Affairs, the Bureau of
the Budget, and the Economic and Fiscal Commission. The
Committee, so assembled, shall invite and appoint 2 members
of the businesses that are eligible for the credits provided
by those Sections. The Committee shall study the use and
effectiveness of these credits with regard to job creation
relative to the revenue loss to the State from the provision
of these credits. The Director of the Department of Revenue
shall, on behalf of the Committee, submit the Committee's
report to the General Assembly on or before June 30, 1998
June 30, 1997.
(Source: P.A. 88-505.)
Section 10. The Use Tax Act is amended by changing
Sections 3-5 and 3-55 as follows:
(35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
(3) Personal property purchased by a not-for-profit
music or dramatic arts organization that establishes, by
proof required by the Department by rule, that it has
received an exemption under Section 501(c)(3) of the Internal
Revenue Code and that is organized and operated for the
presentation of live public performances of musical or
theatrical works on a regular basis.
(4) Personal property purchased by a governmental body,
by a corporation, society, association, foundation, or
institution organized and operated exclusively for
charitable, religious, or educational purposes, or by a
not-for-profit corporation, society, association, foundation,
institution, or organization that has no compensated officers
or employees and that is organized and operated primarily for
the recreation of persons 55 years of age or older. A limited
liability company may qualify for the exemption under this
paragraph only if the limited liability company is organized
and operated exclusively for educational purposes. On and
after July 1, 1987, however, no entity otherwise eligible for
this exemption shall make tax-free purchases unless it has an
active exemption identification number issued by the
Department.
(5) A passenger car that is a replacement vehicle to the
extent that the purchase price of the car is subject to the
Replacement Vehicle Tax.
(6) Graphic arts machinery and equipment, including
repair and replacement parts, both new and used, and
including that manufactured on special order, certified by
the purchaser to be used primarily for graphic arts
production, and including machinery and equipment purchased
for lease.
(7) Farm chemicals.
(8) Legal tender, currency, medallions, or gold or
silver coinage issued by the State of Illinois, the
government of the United States of America, or the government
of any foreign country, and bullion.
(9) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(10) A motor vehicle of the first division, a motor
vehicle of the second division that is a self-contained motor
vehicle designed or permanently converted to provide living
quarters for recreational, camping, or travel use, with
direct walk through to the living quarters from the driver's
seat, or a motor vehicle of the second division that is of
the van configuration designed for the transportation of not
less than 7 nor more than 16 passengers, as defined in
Section 1-146 of the Illinois Vehicle Code, that is used for
automobile renting, as defined in the Automobile Renting
Occupation and Use Tax Act.
(11) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for production agriculture
or State or federal agricultural programs, including
individual replacement parts for the machinery and equipment,
and including machinery and equipment purchased for lease,
but excluding motor vehicles required to be registered under
the Illinois Vehicle Code. Horticultural polyhouses or hoop
houses used for propagating, growing, or overwintering plants
shall be considered farm machinery and equipment under this
paragraph.
(12) Fuel and petroleum products sold to or used by an
air common carrier, certified by the carrier to be used for
consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight destined for
or returning from a location or locations outside the United
States without regard to previous or subsequent domestic
stopovers.
(13) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption
of food and beverages purchased at retail from a retailer, to
the extent that the proceeds of the service charge are in
fact turned over as tips or as a substitute for tips to the
employees who participate directly in preparing, serving,
hosting or cleaning up the food or beverage function with
respect to which the service charge is imposed.
(14) Oil field exploration, drilling, and production
equipment, including (i) rigs and parts of rigs, rotary rigs,
cable tool rigs, and workover rigs, (ii) pipe and tubular
goods, including casing and drill strings, (iii) pumps and
pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(15) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including
that manufactured on special order, certified by the
purchaser to be used primarily for photoprocessing, and
including photoprocessing machinery and equipment purchased
for lease.
(16) Coal exploration, mining, offhighway hauling,
processing, maintenance, and reclamation equipment, including
replacement parts and equipment, and including equipment
purchased for lease, but excluding motor vehicles required to
be registered under the Illinois Vehicle Code.
(17) Distillation machinery and equipment, sold as a
unit or kit, assembled or installed by the retailer,
certified by the user to be used only for the production of
ethyl alcohol that will be used for consumption as motor fuel
or as a component of motor fuel for the personal use of the
user, and not subject to sale or resale.
(18) Manufacturing and assembling machinery and
equipment used primarily in the process of manufacturing or
assembling tangible personal property for wholesale or retail
sale or lease, whether that sale or lease is made directly by
the manufacturer or by some other person, whether the
materials used in the process are owned by the manufacturer
or some other person, or whether that sale or lease is made
apart from or as an incident to the seller's engaging in the
service occupation of producing machines, tools, dies, jigs,
patterns, gauges, or other similar items of no commercial
value on special order for a particular purchaser.
(19) Personal property delivered to a purchaser or
purchaser's donee inside Illinois when the purchase order for
that personal property was received by a florist located
outside Illinois who has a florist located inside Illinois
deliver the personal property.
(20) Semen used for artificial insemination of livestock
for direct agricultural production.
(21) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes.
(22) Computers and communications equipment utilized
for any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is
leased in a manner that does not qualify for this exemption
or is used in any other non-exempt manner, the lessor shall
be liable for the tax imposed under this Act or the Service
Use Tax Act, as the case may be, based on the fair market
value of the property at the time the non-qualifying use
occurs. No lessor shall collect or attempt to collect an
amount (however designated) that purports to reimburse that
lessor for the tax imposed by this Act or the Service Use Tax
Act, as the case may be, if the tax has not been paid by the
lessor. If a lessor improperly collects any such amount from
the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that
amount is not refunded to the lessee for any reason, the
lessor is liable to pay that amount to the Department.
(23) Personal property purchased by a lessor who leases
the property, under a lease of one year or longer executed
or in effect at the time the lessor would otherwise be
subject to the tax imposed by this Act, to a governmental
body that has been issued an active sales tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the property is leased
in a manner that does not qualify for this exemption or used
in any other non-exempt manner, the lessor shall be liable
for the tax imposed under this Act or the Service Use Tax
Act, as the case may be, based on the fair market value of
the property at the time the non-qualifying use occurs. No
lessor shall collect or attempt to collect an amount (however
designated) that purports to reimburse that lessor for the
tax imposed by this Act or the Service Use Tax Act, as the
case may be, if the tax has not been paid by the lessor. If
a lessor improperly collects any such amount from the lessee,
the lessee shall have a legal right to claim a refund of that
amount from the lessor. If, however, that amount is not
refunded to the lessee for any reason, the lessor is liable
to pay that amount to the Department.
(24) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally
declared disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to
a corporation, society, association, foundation, or
institution that has been issued a sales tax exemption
identification number by the Department that assists victims
of the disaster who reside within the declared disaster area.
(25) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including but not limited to municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities
located in the declared disaster area within 6 months after
the disaster.
(Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
eff. 8-9-96; revised 8-21-96.)
(35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
Sec. 3-55. Multistate exemption. To prevent actual or
likely multistate taxation, the tax imposed by this Act does
not apply to the use of tangible personal property in this
State under the following circumstances:
(a) The use, in this State, of tangible personal
property acquired outside this State by a nonresident
individual and brought into this State by the individual for
his or her own use while temporarily within this State or
while passing through this State.
(b) The use, in this State, of tangible personal
property by an interstate carrier for hire as rolling stock
moving in interstate commerce or by lessors under a lease of
one year or longer executed or in effect at the time of
purchase of tangible personal property by interstate carriers
for-hire for use as rolling stock moving in interstate
commerce as long as so used by the interstate carriers
for-hire, and equipment operated by a telecommunications
provider, licensed as a common carrier by the Federal
Communications Commission, which is permanently installed in
or affixed to aircraft moving in interstate commerce.
(c) The use, in this State, by owners, lessors, or
shippers of tangible personal property that is utilized by
interstate carriers for hire for use as rolling stock moving
in interstate commerce as long as so used by the interstate
carriers for hire, and equipment operated by a
telecommunications provider, licensed as a common carrier by
the Federal Communications Commission, which is permanently
installed in or affixed to aircraft moving in interstate
commerce.
(d) The use, in this State, of tangible personal
property that is acquired outside this State and caused to be
brought into this State by a person who has already paid a
tax in another State in respect to the sale, purchase, or use
of that property, to the extent of the amount of the tax
properly due and paid in the other State.
(e) The temporary storage, in this State, of tangible
personal property that is acquired outside this State and
that, after being brought into this State and stored here
temporarily, is used solely outside this State or is
physically attached to or incorporated into other tangible
personal property that is used solely outside this State, or
is altered by converting, fabricating, manufacturing,
printing, processing, or shaping, and, as altered, is used
solely outside this State.
(f) The temporary storage in this State of building
materials and fixtures that are acquired either in this State
or outside this State by an Illinois registered combination
retailer and construction contractor, and that the purchaser
thereafter uses outside this State by incorporating that
property into real estate located outside this State.
(g) The use or purchase of tangible personal property by
a common carrier by rail or motor that receives the physical
possession of the property in Illinois, and that transports
the property, or shares with another common carrier in the
transportation of the property, out of Illinois on a standard
uniform bill of lading showing the seller of the property as
the shipper or consignor of the property to a destination
outside Illinois, for use outside Illinois.
(h) The use, in this State, of a motor vehicle that was
sold in this State to a nonresident, even though the motor
vehicle is delivered to the nonresident in this State, if the
motor vehicle is not to be titled in this State, and if a
driveaway decal permit is issued to the motor vehicle as
provided in Section 3-603 of the Illinois Vehicle Code or if
the nonresident purchaser has vehicle registration plates to
transfer to the motor vehicle upon returning to his or her
home state. The issuance of the driveaway decal permit or
having the out-of-state registration plates to be transferred
shall be prima facie evidence that the motor vehicle will not
be titled in this State.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-953; 86-1394; 86-1475; 87-1263.)
Section 15. The Service Use Tax Act is amended by
changing Section 3-5 as follows:
(35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(2) Personal property purchased by a non-profit Illinois
county fair association for use in conducting, operating, or
promoting the county fair.
(3) Personal property purchased by a not-for-profit
music or dramatic arts organization that establishes, by
proof required by the Department by rule, that it has
received an exemption under Section 501(c)(3) of the Internal
Revenue Code and that is organized and operated for the
presentation of live public performances of musical or
theatrical works on a regular basis.
(4) Legal tender, currency, medallions, or gold or
silver coinage issued by the State of Illinois, the
government of the United States of America, or the government
of any foreign country, and bullion.
(5) Graphic arts machinery and equipment, including
repair and replacement parts, both new and used, and
including that manufactured on special order or purchased for
lease, certified by the purchaser to be used primarily for
graphic arts production.
(6) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for production agriculture
or State or federal agricultural programs, including
individual replacement parts for the machinery and equipment,
and including machinery and equipment purchased for lease,
but excluding motor vehicles required to be registered under
the Illinois Vehicle Code. Horticultural polyhouses or hoop
houses used for propagating, growing, or overwintering plants
shall be considered farm machinery and equipment under this
paragraph.
(8) Fuel and petroleum products sold to or used by an
air common carrier, certified by the carrier to be used for
consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight destined for
or returning from a location or locations outside the United
States without regard to previous or subsequent domestic
stopovers.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption
of food and beverages acquired as an incident to the purchase
of a service from a serviceman, to the extent that the
proceeds of the service charge are in fact turned over as
tips or as a substitute for tips to the employees who
participate directly in preparing, serving, hosting or
cleaning up the food or beverage function with respect to
which the service charge is imposed.
(10) Oil field exploration, drilling, and production
equipment, including (i) rigs and parts of rigs, rotary rigs,
cable tool rigs, and workover rigs, (ii) pipe and tubular
goods, including casing and drill strings, (iii) pumps and
pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(11) Proceeds from the sale of photoprocessing machinery
and equipment, including repair and replacement parts, both
new and used, including that manufactured on special order,
certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and
equipment purchased for lease.
(12) Coal exploration, mining, offhighway hauling,
processing, maintenance, and reclamation equipment, including
replacement parts and equipment, and including equipment
purchased for lease, but excluding motor vehicles required to
be registered under the Illinois Vehicle Code.
(13) Semen used for artificial insemination of livestock
for direct agricultural production.
(14) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes.
(15) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is leased
in a manner that does not qualify for this exemption or is
used in any other non-exempt manner, the lessor shall be
liable for the tax imposed under this Act or the Use Tax Act,
as the case may be, based on the fair market value of the
property at the time the non-qualifying use occurs. No
lessor shall collect or attempt to collect an amount (however
designated) that purports to reimburse that lessor for the
tax imposed by this Act or the Use Tax Act, as the case may
be, if the tax has not been paid by the lessor. If a lessor
improperly collects any such amount from the lessee, the
lessee shall have a legal right to claim a refund of that
amount from the lessor. If, however, that amount is not
refunded to the lessee for any reason, the lessor is liable
to pay that amount to the Department.
(16) Personal property purchased by a lessor who leases
the property, under a lease of one year or longer executed or
in effect at the time the lessor would otherwise be subject
to the tax imposed by this Act, to a governmental body that
has been issued an active tax exemption identification number
by the Department under Section 1g of the Retailers'
Occupation Tax Act. If the property is leased in a manner
that does not qualify for this exemption or is used in any
other non-exempt manner, the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case
may be, based on the fair market value of the property at the
time the non-qualifying use occurs. No lessor shall collect
or attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has
not been paid by the lessor. If a lessor improperly collects
any such amount from the lessee, the lessee shall have a
legal right to claim a refund of that amount from the lessor.
If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the
Department.
(17) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally
declared disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to
a corporation, society, association, foundation, or
institution that has been issued a sales tax exemption
identification number by the Department that assists victims
of the disaster who reside within the declared disaster area.
(18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including but not limited to municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities
located in the declared disaster area within 6 months after
the disaster.
(Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
eff. 8-9-96; revised 8-21-96.)
Section 20. The Service Occupation Tax Act is amended by
changing Section 3-5 as follows:
(35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
Sec. 3-5. Exemptions. The following tangible personal
property is exempt from the tax imposed by this Act:
(1) Personal property sold by a corporation, society,
association, foundation, institution, or organization, other
than a limited liability company, that is organized and
operated as a not-for-profit service enterprise for the
benefit of persons 65 years of age or older if the personal
property was not purchased by the enterprise for the purpose
of resale by the enterprise.
(2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
(3) Personal property purchased by any not-for-profit
music or dramatic arts organization that establishes, by
proof required by the Department by rule, that it has
received an exemption under Section 501(c)(3) of the
Internal Revenue Code and that is organized and operated for
the presentation of live public performances of musical or
theatrical works on a regular basis.
(4) Legal tender, currency, medallions, or gold or
silver coinage issued by the State of Illinois, the
government of the United States of America, or the government
of any foreign country, and bullion.
(5) Graphic arts machinery and equipment, including
repair and replacement parts, both new and used, and
including that manufactured on special order or purchased for
lease, certified by the purchaser to be used primarily for
graphic arts production.
(6) Personal property sold by a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for production agriculture
or State or federal agricultural programs, including
individual replacement parts for the machinery and equipment,
and including machinery and equipment purchased for lease,
but excluding motor vehicles required to be registered under
the Illinois Vehicle Code. Horticultural polyhouses or hoop
houses used for propagating, growing, or overwintering plants
shall be considered farm machinery and equipment under this
paragraph.
(8) Fuel and petroleum products sold to or used by an
air common carrier, certified by the carrier to be used for
consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight destined for
or returning from a location or locations outside the United
States without regard to previous or subsequent domestic
stopovers.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption
of food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
(10) Oil field exploration, drilling, and production
equipment, including (i) rigs and parts of rigs, rotary rigs,
cable tool rigs, and workover rigs, (ii) pipe and tubular
goods, including casing and drill strings, (iii) pumps and
pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(11) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including
that manufactured on special order, certified by the
purchaser to be used primarily for photoprocessing, and
including photoprocessing machinery and equipment purchased
for lease.
(12) Coal exploration, mining, offhighway hauling,
processing, maintenance, and reclamation equipment, including
replacement parts and equipment, and including equipment
purchased for lease, but excluding motor vehicles required to
be registered under the Illinois Vehicle Code.
(13) 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,
for human use, when purchased for use by a person receiving
medical assistance under Article 5 of the Illinois Public Aid
Code who resides in a licensed long-term care facility, as
defined in the Nursing Home Care Act.
(14) Semen used for artificial insemination of livestock
for direct agricultural production.
(15) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes.
(16) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor
who leases the equipment, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act.
(17) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time of the purchase, to a governmental body
that has been issued an active tax exemption identification
number by the Department under Section 1g of the Retailers'
Occupation Tax Act.
(18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally
declared disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to
a corporation, society, association, foundation, or
institution that has been issued a sales tax exemption
identification number by the Department that assists victims
of the disaster who reside within the declared disaster area.
(19) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including but not limited to municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities
located in the declared disaster area within 6 months after
the disaster.
(Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
eff. 8-9-96; revised 8-21-96.)
Section 25. The Retailers' Occupation Tax Act is amended
by changing Section 2-5 as follows:
(35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
Sec. 2-5. Exemptions. Gross receipts from proceeds from
the sale of the following tangible personal property are
exempt from the tax imposed by this Act:
(1) Farm chemicals.
(2) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for production agriculture
or State or federal agricultural programs, including
individual replacement parts for the machinery and equipment,
and including machinery and equipment purchased for lease,
but excluding motor vehicles required to be registered under
the Illinois Vehicle Code. Horticultural polyhouses or hoop
houses used for propagating, growing, or overwintering plants
shall be considered farm machinery and equipment under this
paragraph.
(3) Distillation machinery and equipment, sold as a unit
or kit, assembled or installed by the retailer, certified by
the user to be used only for the production of ethyl alcohol
that will be used for consumption as motor fuel or as a
component of motor fuel for the personal use of the user, and
not subject to sale or resale.
(4) Graphic arts machinery and equipment, including
repair and replacement parts, both new and used, and
including that manufactured on special order or purchased for
lease, certified by the purchaser to be used primarily for
graphic arts production.
(5) A motor vehicle of the first division, a motor
vehicle of the second division that is a self-contained motor
vehicle designed or permanently converted to provide living
quarters for recreational, camping, or travel use, with
direct walk through access to the living quarters from the
driver's seat, or a motor vehicle of the second division that
is of the van configuration designed for the transportation
of not less than 7 nor more than 16 passengers, as defined in
Section 1-146 of the Illinois Vehicle Code, that is used for
automobile renting, as defined in the Automobile Renting
Occupation and Use Tax Act.
(6) Personal property sold by a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(7) Proceeds of that portion of the selling price of a
passenger car the sale of which is subject to the Replacement
Vehicle Tax.
(8) Personal property sold to an Illinois county fair
association for use in conducting, operating, or promoting
the county fair.
(9) Personal property sold to a not-for-profit music or
dramatic arts organization that establishes, by proof
required by the Department by rule, that it has received an
exemption under Section 501(c) (3) of the Internal Revenue
Code and that is organized and operated for the presentation
of live public performances of musical or theatrical works on
a regular basis.
(10) Personal property sold by a corporation, society,
association, foundation, institution, or organization, other
than a limited liability company, that is organized and
operated as a not-for-profit service enterprise for the
benefit of persons 65 years of age or older if the personal
property was not purchased by the enterprise for the purpose
of resale by the enterprise.
(11) Personal property sold to a governmental body, to a
corporation, society, association, foundation, or institution
organized and operated exclusively for charitable, religious,
or educational purposes, or to a not-for-profit corporation,
society, association, foundation, institution, or
organization that has no compensated officers or employees
and that is organized and operated primarily for the
recreation of persons 55 years of age or older. A limited
liability company may qualify for the exemption under this
paragraph only if the limited liability company is organized
and operated exclusively for educational purposes. On and
after July 1, 1987, however, no entity otherwise eligible for
this exemption shall make tax-free purchases unless it has an
active identification number issued by the Department.
(12) Personal property sold to interstate carriers for
hire for use as rolling stock moving in interstate commerce
or to lessors under leases of one year or longer executed or
in effect at the time of purchase by interstate carriers for
hire for use as rolling stock moving in interstate commerce
and equipment operated by a telecommunications provider,
licensed as a common carrier by the Federal Communications
Commission, which is permanently installed in or affixed to
aircraft moving in interstate commerce.
(13) Proceeds from sales to owners, lessors, or shippers
of tangible personal property that is utilized by interstate
carriers for hire for use as rolling stock moving in
interstate commerce and equipment operated by a
telecommunications provider, licensed as a common carrier by
the Federal Communications Commission, which is permanently
installed in or affixed to aircraft moving in interstate
commerce.
(14) Machinery and equipment that will be used by the
purchaser, or a lessee of the purchaser, primarily in the
process of manufacturing or assembling tangible personal
property for wholesale or retail sale or lease, whether the
sale or lease is made directly by the manufacturer or by some
other person, whether the materials used in the process are
owned by the manufacturer or some other person, or whether
the sale or lease is made apart from or as an incident to the
seller's engaging in the service occupation of producing
machines, tools, dies, jigs, patterns, gauges, or other
similar items of no commercial value on special order for a
particular purchaser.
(15) Proceeds of mandatory service charges separately
stated on customers' bills for purchase and consumption of
food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
(16) Petroleum products sold to a purchaser if the
seller is prohibited by federal law from charging tax to the
purchaser.
(17) Tangible personal property sold to a common carrier
by rail or motor that receives the physical possession of the
property in Illinois and that transports the property, or
shares with another common carrier in the transportation of
the property, out of Illinois on a standard uniform bill of
lading showing the seller of the property as the shipper or
consignor of the property to a destination outside Illinois,
for use outside Illinois.
(18) Legal tender, currency, medallions, or gold or
silver coinage issued by the State of Illinois, the
government of the United States of America, or the government
of any foreign country, and bullion.
(19) Oil field exploration, drilling, and production
equipment, including (i) rigs and parts of rigs, rotary rigs,
cable tool rigs, and workover rigs, (ii) pipe and tubular
goods, including casing and drill strings, (iii) pumps and
pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(20) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including
that manufactured on special order, certified by the
purchaser to be used primarily for photoprocessing, and
including photoprocessing machinery and equipment purchased
for lease.
(21) Coal exploration, mining, offhighway hauling,
processing, maintenance, and reclamation equipment, including
replacement parts and equipment, and including equipment
purchased for lease, but excluding motor vehicles required to
be registered under the Illinois Vehicle Code.
(22) Fuel and petroleum products sold to or used by an
air carrier, certified by the carrier to be used for
consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight destined for
or returning from a location or locations outside the United
States without regard to previous or subsequent domestic
stopovers.
(23) A transaction in which the purchase order is
received by a florist who is located outside Illinois, but
who has a florist located in Illinois deliver the property to
the purchaser or the purchaser's donee in Illinois.
(24) Fuel consumed or used in the operation of ships,
barges, or vessels that are used primarily in or for the
transportation of property or the conveyance of persons for
hire on rivers bordering on this State if the fuel is
delivered by the seller to the purchaser's barge, ship, or
vessel while it is afloat upon that bordering river.
(25) A motor vehicle sold in this State to a nonresident
even though the motor vehicle is delivered to the nonresident
in this State, if the motor vehicle is not to be titled in
this State, and if a driveaway decal permit is issued to the
motor vehicle as provided in Section 3-603 of the Illinois
Vehicle Code or if the nonresident purchaser has vehicle
registration plates to transfer to the motor vehicle upon
returning to his or her home state. The issuance of the
driveaway decal permit or having the out-of-state
registration plates to be transferred is prima facie evidence
that the motor vehicle will not be titled in this State.
(26) Semen used for artificial insemination of livestock
for direct agricultural production.
(27) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes.
(28) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor
who leases the equipment, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
this Act.
(29) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time of the purchase, to a governmental body
that has been issued an active tax exemption identification
number by the Department under Section 1g of this Act.
(30) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally
declared disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to
a corporation, society, association, foundation, or
institution that has been issued a sales tax exemption
identification number by the Department that assists victims
of the disaster who reside within the declared disaster area.
(31) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including but not limited to municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities
located in the declared disaster area within 6 months after
the disaster.
(Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94;
89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff.
8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626,
eff. 8-9-96; revised 8-21-96.)
Section 30. The Property Tax Code is amended by changing
Sections 6-30, 10-152, 14-20, and 15-175 and adding Sections
6-32 and 6-34 as follows:
(35 ILCS 200/6-30)
Sec. 6-30. Board of review in commission counties. In
counties not under township organization with less than
3,000,000 inhabitants in which no board of review is elected
under Section 6-35, the board of county commissioners shall
constitute the board of review. They shall have all the
powers and perform all the duties conferred on or required by
boards of review and shall within one year of taking office
successfully complete a basic course in assessment practice
approved by the Department. Alternatively, the board of
county commissioners may appoint a 3-member board of review.
County commissioners shall receive no additional compensation
for serving on the board of review. County commissioners
serving as the board of review must meet the examination
requirements of Section 6-32. If any member of the board of
county commissioners fails to meet the examination
requirements, the board of county commissioners shall appoint
a board of review.
The board of county commissioners shall appoint a
3-member board of review if (i) the board of county
commissioners so chooses or (ii) any member of the board of
county commissioners fails to meet the examination
requirements of Section 6-32. No person may serve on an
appointed board of review under this Section unless he or she
meets the examination requirements of Section 6-32. Members
of a board of review appointed by the board of county
commissioners shall receive a per diem for their services as
established by the board of county commissioners.
A board of review appointed by the board of county
commissioners shall serve at the pleasure of the board of the
county commissioners. If the board of review is appointed
because any member of the board of county commissioners fails
to meet the examination requirements of Section 6-32 and all
members subsequently fulfill the requirements, the board of
county commissioners may terminate the authority of the
sitting board of review, as soon as it completes its work for
a tax year, and serve as the board of review.
(Source: P.A. 87-818; 87-1189; 88-455; incorporates 88-221;
88-670, eff. 12-2-94.)
(35 ILCS 200/6-32 new)
Sec. 6-32. Examination requirement. In any county to
which Section 6-30 applies, no person may serve on a board of
review who has not passed an examination prepared and
administered by the Department to determine his or her
competence to hold the office. The Department shall conduct
examinations for various counties in a convenient location in
the region. A candidate appearing at the examination shall
indicate to the Department the name of the county the results
shall be certified to if he or she successfully passes the
examination. The Department shall certify the list to each
county from which candidates have appeared at the examination
location. Within one year after the effective date of this
amendatory Act of 1997, the Department shall conduct an
examination at least once in each commission county for which
the chairman of the County Board of Commissioners requests an
examination. The Department may provide by rule the maximum
time that the name of a person who has passed the examination
shall be included on a list of persons eligible to serve on
the board of review.
(35 ILCS 200/6-34 new)
Sec. 6-34. Political makeup. If the board of county
commissioners appoints a board of review as prescribed in
Section 6-30, the board of review shall consist of 2 members
affiliated with the political party polling the highest vote
for any county office in the county and one member of the
party polling the second highest vote for the same county
office at the last general election.
(35 ILCS 200/10-152)
(Section scheduled to be repealed on December 31, 2006)
Sec. 10-152. Vegetative filter strip assessment.
(a) In counties with less than 3,000,000 inhabitants,
any land (i) that is located between a farm field and an area
to be protected, including but not limited to surface water,
a stream, a river, or a sinkhole and (ii) that meets the
requirements of subsection (b) of this Section shall be
considered a "vegetative filter strip" and valued at 1/6th of
its productivity index equalized assessed value as cropland.
In counties with 3,000,000 or more inhabitants, the land
shall be valued at the lesser of either (i) 16% of the fair
cash value of the farmland estimated at the price it would
bring at a fair, voluntary sale for use by the buyer as a
farm as defined in Section 1-60 or (ii) 90% of the 1983
average equalized assessed value per acre certified by the
Department of Revenue.
(b) Vegetative filter strips shall meet the standards
and specifications set forth in the Natural Resources
Conservation Service Technical Guide and shall must be at
least 66 feet in width and contain vegetation that (i) has a
dense top growth; (ii) forms a uniform ground cover; (iii)
has a heavy fibrous root system; and (iv) tolerates
pesticides used in the farm field.
(c) The county's soil and water conservation district
shall assist the taxpayer in completing a uniform certified
document as prescribed by the Department of Revenue in
cooperation with the Association of Illinois Soil and Water
Conservation Districts that certifies (i) that the property
meets the requirements established under this Section for
vegetative filter strips and (ii) the acreage or square
footage of property that qualifies for assessment as a
vegetative filter strip. The document shall be filed by the
applicant with the Chief County Assessment Officer. The
Chief County Assessment Officer shall promulgate rules
concerning the filing of the document. The soil and water
conservation district shall create a conservation plan for
the creation of the filter strip. The plan shall be kept on
file in the soil and water conservation district office.
Nothing in this Section shall be construed to require any
taxpayer to have vegetative filter strips.
(d) A joint report by the Department of Agriculture and
the Department of Natural Resources concerning the effect and
impact of vegetative filter strip assessment shall be
submitted to the General Assembly by March 1, 2006.
(e) This Section is repealed on December 31, 2006.
(Source: P.A. 89-606, eff. 1-1-97.)
(35 ILCS 200/14-20)
Sec. 14-20. Certificate of error; counties of less than
3,000,000. In any county with less than 3,000,000
inhabitants, if, at any time before judgment or order of sale
is entered in any proceeding to collect or to enjoin the
collection of taxes based upon any assessment of any
property, the chief county assessment officer discovers an
error or mistake in the assessment (other than errors of
judgment as to the valuation of the property), he or she
shall issue to the person erroneously assessed a certificate
setting forth the nature of the error and the cause or causes
of the error. In any county with less than 3,000,000
inhabitants, if an owner fails to file an application for the
Senior Citizens Assessment Freeze Homestead Exemption
provided in Section 15-172 during the previous assessment
year and qualifies for the exemption, the Chief County
Assessment Officer pursuant to this Section, or the Board of
Review pursuant to Section 16-75, shall issue a certificate
of error setting forth the correct taxable valuation of the
property. The certificate, when properly endorsed by the
majority of the board of review, showing their concurrence,
and not otherwise, may be used in evidence in any court of
competent jurisdiction, and when so introduced in evidence,
shall become a part of the court record and shall not be
removed from the files except on an order of the court.
Issuance of a certificate of error shall not reduce a
tax, except as ordered by the court.
(Source: P.A. 83-121; 88-455.)
(35 ILCS 200/15-175)
Sec. 15-175. General homestead exemption. Homestead
property is entitled to an annual homestead exemption
limited, except as described here with relation to
cooperatives, to a reduction in the equalized assessed value
of homestead property equal to the increase in equalized
assessed value for the current assessment year above the
equalized assessed value of the property for 1977, up to the
maximum reduction set forth below. If however, the 1977
equalized assessed value upon which taxes were paid is
subsequently determined by local assessing officials, the
Property Tax Appeal Board, or a court to have been excessive,
the equalized assessed value which should have been placed on
the property for 1977 shall be used to determine the amount
of the exemption.
The maximum reduction shall be $4,500 in counties with
3,000,000 or more inhabitants and $3,500 in all other
counties.
"Homestead property" under this Section includes
residential property that is occupied by its owner or owners
as his or their principal dwelling place, or that is a
leasehold interest on which a single family residence is
situated, which is occupied as a residence by a person who
has an ownership interest therein, legal or equitable or as a
lessee, and on which the person is liable for the payment of
property taxes. For land improved with an apartment building
owned and operated as a cooperative or a building which is a
life care facility as defined in Section 15-170 and
considered to be a cooperative under Section 15-170, the
maximum reduction from the equalized assessed value shall be
limited to the increase in the value above the equalized
assessed value of the property for 1977, up to the maximum
reduction set forth above, multiplied by the number of
apartments or units occupied by a person or persons who is
liable, by contract with the owner or owners of record, for
paying property taxes on the property and is an owner of
record of a legal or equitable interest in the cooperative
apartment building, other than a leasehold interest. For
purposes of this Section, the term "life care facility" has
the meaning stated in Section 15-170.
In a cooperative where a homestead exemption has been
granted, the cooperative association or its management firm
shall credit the savings resulting from that exemption only
to the apportioned tax liability of the owner who qualified
for the exemption. Any person who willfully refuses to so
credit the savings shall be guilty of a Class B misdemeanor.
Where married persons maintain and reside in separate
residences qualifying as homestead property, each residence
shall receive 50% of the total reduction in equalized
assessed valuation provided by this Section.
The assessor, or chief county assessment officer may
determine the eligibility of residential property to receive
the homestead exemption by application, visual inspection,
questionnaire or other reasonable methods. The determination
shall be made in accordance with guidelines established by
the Department. In counties with less than 3,000,000
inhabitants, if an application is used to determine
eligibility, the application shall be mailed to any taxpayer
over 65 years of age who has once applied for and been
granted an exemption under this Section. In counties with
fewer than 3,000,000 inhabitants, in the event of a sale of
homestead property the homestead exemption shall remain in
effect for the remainder of the assessment year of the sale.
The assessor or chief county assessment officer may require
the new owner of the property to apply for the homestead
exemption for the following assessment year.
(Source: P.A. 87-894; 87-1189; 88-455.)
Section 32. The Counties Code is amended by changing
Section 5-1006.5 as follows:
(55 ILCS 5/5-1006.5)
Sec. 5-1006.5. Special County Retailers' Occupation Tax
For Public Safety.
(a) The county board of any county may impose a tax upon
all persons engaged in the business of selling tangible
personal property, other than personal property titled or
registered with an agency of this State's government, at
retail in the county on the gross receipts from the sales
made in the course of business to provide revenue to be used
exclusively for public safety purposes in that county, if a
proposition for the tax has been submitted to the electors of
that county and approved by a majority of those voting on the
question. If imposed, this tax shall be imposed only in
one-quarter percent increments. By resolution, the county
board may order the proposition to be submitted at any
election. The county clerk shall certify the question to the
proper election authority, who shall submit the proposition
at an election in accordance with the general election law.
The proposition shall be in substantially the following
form:
"Shall (name of county) be authorized to impose a
public safety tax at the rate of .... upon all persons
engaged in the business of selling tangible personal
property at retail in the county on gross receipts from
the sales made in the course of their business to be used
for crime prevention, detention, and other public safety
purposes?"
Votes shall be recorded as Yes or No. If a majority of the
electors voting on the proposition vote in favor of it, the
county may impose the tax.
This additional tax may not be imposed on the sales 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 which 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 by a county under this Section and all civil
penalties that may be assessed as an incident of the tax
shall be collected and enforced by the Illinois Department of
Revenue. The certificate of registration that is issued by
the Department to a retailer under the Retailers' Occupation
Tax Act shall permit the retailer to engage in a business
that is taxable without registering separately with the
Department under an ordinance or resolution under this
Section. The Department has full power to administer and
enforce this Section, 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 a 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, and
definitions of terms, and (iii) employ the same modes of
procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
1f, 1i, 1j, 2, 2-10 (in respect to all provisions contained
in those Sections other than the State rate of tax), 2-40,
2a, 2b, 2c, 3 (except provisions relating to transaction
returns and quarter monthly payments), 4, 5, 5a, 5b, 5c, 5d,
5e, 5f, 5g, 5h, 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 if
those provisions were set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
sellers' 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 which sellers are required
to collect under the Use Tax Act, pursuant to such bracketed
schedules as the Department may prescribe.
Whenever the Department determines that a refund should
be made under this Section 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 County Public Safety Retailers'
Occupation Tax Fund.
(b) If a tax has been imposed under subsection (a), 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 tax may
not be imposed on sales 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 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 thereof shall be
collected and enforced by the Department of Revenue. The
Department has full power to administer and enforce this
subsection; to collect all taxes and penalties due hereunder;
to dispose of taxes and penalties so collected in the manner
hereinafter provided; and to determine all rights to credit
memoranda arising on account of the erroneous payment of tax
or penalty hereunder. 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 1a-1, 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, 3 through 3-50 (in respect to all provisions
therein 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),
10, 11, 12 (except the reference therein to Section 2b of the
Retailers' Occupation Tax Act), 13 (except that any reference
to the State shall mean the county), the first paragraph of
Section 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 herein.
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 such bracket schedules as the
Department may prescribe.
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 County Public Safety
Retailers' Occupation Fund.
Nothing in this subsection shall be construed to
authorize the county to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by the
State.
(c) The Department shall immediately pay over to the
State Treasurer, Ex Officio, as trustee, all taxes and
penalties collected under this Section to be deposited into
the County Public Safety Retailers' Occupation Tax Fund,
which shall be an unappropriated trust fund held outside of
the State treasury is created in the State treasury. On or
before the 25th day of each calendar month, the Department
shall prepare and certify to the Comptroller the disbursement
of stated sums of money to the counties from which retailers
have paid taxes or penalties to the Department during the
second preceding calendar month. The amount to be paid to
each county shall be the amount (not including credit
memoranda) collected under this Section during the second
preceding calendar month by the Department plus an amount the
Department determines is necessary to offset any amounts that
were erroneously paid to a different taxing body, and not
including (i) an amount equal to the amount of refunds made
during the second preceding calendar month by the Department
on behalf of the county and (ii) any amount that the
Department determines is necessary to offset any amounts that
were payable to a different taxing body but were erroneously
paid to the county. Within 10 days after receipt by the
Comptroller of the disbursement certification to the counties
provided for in this Section to be given to the Comptroller
by the Department, the Comptroller shall cause the orders to
be drawn for the respective amounts in accordance with
directions contained in the certification.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in March of each year
to each county that received more than $500,000 in
disbursements under the preceding paragraph in the preceding
calendar year. The allocation shall be in an amount equal to
the average monthly distribution made to each such county
under the preceding paragraph during the preceding calendar
year (excluding the 2 months of highest receipts). The
distribution made in March of each year subsequent to the
year in which an allocation was made pursuant to this
paragraph and the preceding paragraph shall be reduced by the
amount allocated and disbursed under this paragraph in the
preceding calendar year. The Department shall prepare and
certify to the Comptroller for disbursement the allocations
made in accordance with this paragraph.
(d) For the purpose of determining the local
governmental unit whose tax 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
United States Constitution as a sale in interstate or foreign
commerce.
(e) Nothing in this Section shall be construed to
authorize a 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.
(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 county
clerk and filed with the Illinois Department of Revenue on or
before the first day of June. The Illinois Department of
Revenue shall then proceed to administer and enforce this
Section as of the first day of January next following the
filing.
(g) When certifying the amount of a monthly disbursement
to a 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.
(h) This Section may be cited as the "Special County
Occupation Tax For Public Safety Law".
(Source: P.A. 89-107, eff. 1-1-96; 89-718, eff. 3-7-97.)
(30 ILCS 105/5.416 rep.)
Section 50. The State Finance Act is amended by
repealing Section 5.416.
Section 99. Effective date. This Act takes effect upon
becoming law, except that the provisions amending the
Property Tax Code by changing Section 6-30 and adding
Sections 6-32 and 6-34 take effect January 1, 1999.