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Public Act 92-0221
SB164 Enrolled LRB9201884SMtm
AN ACT concerning taxation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Simplified Sales and Use Tax Administration Act.
Section 2. Definitions. As used in this Act:
(a) "Agreement" means the Streamlined Sales and Use Tax
Agreement as amended and adopted on January 27, 2001.
(b) "Certified Automated System" means software
certified jointly by the states that are signatories to the
Agreement to calculate the tax imposed by each jurisdiction
on a transaction, determine the amount of tax to remit to the
appropriate state, and maintain a record of the transaction.
(c) "Certified Service Provider" means an agent
certified jointly by the states that are signatories to the
Agreement to perform all of the seller's sales tax functions.
(d) "Person" means an individual, trust, estate,
fiduciary, partnership, limited liability company, limited
liability partnership, corporation, or any other legal
entity.
(e) "Sales Tax" means the tax levied under the Service
Occupation Tax Act (35 ILCS 115/) and the Retailers'
Occupation Tax Act (35 ILCS 120/). "Sales tax" also means
any local sales tax levied under the Home Rule Municipal
Retailers' Occupation Tax Act (65 ILCS 5/8-11-1), the
Non-Home Rule Municipal Retailers' Occupation Tax Act (65
ILCS 5/8-11-1.3), the Non-Home Rule Municipal Service
Occupation Tax Act (65 ILCS 5/8-11-1.4), the Home Rule
Municipal Service Occupation Tax (65 ILCS 5/8-11-5), the Home
Rule County Retailers' Occupation Tax Law (55 ILCS 5/5-1006),
the Special County Occupation Tax for Public Safety Law (55
ILCS 5/5-1006.5), the Home Rule County Service Occupation Tax
Law (55 ILCS 5/5-1007), subsection (b) of the Rock Island
County Use and Occupation Tax Law (55 ILCS 5/5-1008.5(b)),
the Metro East Mass Transit District Retailers' Occupation
Tax (70 ILCS 3610/5.01(b)), the Metro East Mass Transit
District Service Occupation Tax (70 ILCS 3610/5.01(c)), the
Regional Transportation Authority Retailers' Occupation Tax
(70 ILCS 3615/4.03(e)), the Regional Transportation Authority
Service Occupation Tax (70 ILCS 3615/4.03(f)), the County
Water Commission Retailers' Occupation Tax (70 ILCS
3720/4(b)), or the County Water Commission Service Occupation
Tax (70 ILCS 3720/4(c)).
(f) "Seller" means any person making sales of personal
property or services.
(g) "State" means any state of the United States and the
District of Columbia.
(h) "Use tax" means the tax levied under the Use Tax Act
(35 ILCS 105/) and the Service Use Tax Act (35 ILCS 110/).
"Use tax" also means any local use tax levied under the Home
Rule Municipal Use Tax Act (65 ILCS 5/8-11-6(b)), provided
that the State and the municipality have entered into an
agreement that provides for administration of the tax by the
State.
Section 3. Legislative finding. The General Assembly
finds that a simplified sales tax and use tax system will
reduce and over time eliminate the burden and cost for all
vendors to collect this State's sales and use tax. The
General Assembly further finds that this State should
participate in multistate discussions to review or amend or
both review and amend the terms of the Agreement to simplify
and modernize sales tax and use tax administration in order
to substantially reduce the burden of tax compliance for all
sellers and for all types of commerce.
Section 4. Authority to participate in multistate
negotiations. For the purposes of reviewing or amending or
both reviewing and amending the Agreement embodying the
simplification requirements as contained in Section 7 of this
Act, the State shall enter into multistate discussions. For
purposes of such discussions, the State shall be represented
by 4 delegates. One delegate shall be appointed by the
President of the Senate, one by the Minority Leader of the
Senate, one by the Speaker of the House of Representatives,
and one by the Minority Leader of the House of
Representatives.
Section 5. Authority to enter agreement. Subject to
Section 6, the Department of Revenue is authorized to enter
into the Streamlined Sales and Use Tax Agreement with one or
more states to simplify and modernize sales and use tax
administration in order to substantially reduce the burden of
tax compliance for all sellers and for all types of commerce.
In furtherance of the Agreement, the Department of Revenue is
authorized to act jointly with other states that are members
of the Agreement to establish standards for certification of
a certified service provider and certified automated system
and establish performance standards for multistate sellers.
The Department of Revenue is further authorized to take
other actions reasonably required to implement the provisions
set forth in this Act. Other actions authorized by this
Section include, but are not limited to, the adoption of
rules and regulations and the joint procurement, with other
member states, of goods and services in furtherance of the
cooperative agreement.
The Director of Revenue or the Director's designee is
authorized to represent this State before the other states
that are signatories to the Agreement.
Section 6. Relationship to State law. No provision of
the Agreement authorized by this Act in whole or part
invalidates or amends any provision of the law of this State.
Adoption of the Agreement by this State does not amend or
modify any law of this State. Implementation of any
condition of the Agreement in this State, whether adopted
before, at, or after membership of this State in the
Agreement, must be by the action of this State.
Section 7. Agreement requirements. The Department of
Revenue shall not enter into the Streamlined Sales and Use
Tax Agreement unless the Agreement requires each state to
abide by the following requirements:
(a) Simplified state rate. The Agreement must set
restrictions to limit over time the number of state rates.
(b) Uniform standards. The Agreement must establish
uniform standards for the following:
(1) The sourcing of transactions to taxing
jurisdictions.
(2) The administration of exempt sales.
(3) Sales and use tax returns and remittances.
(c) Central registration. The Agreement must provide a
central, electronic registration system that allows a seller
to register to collect and remit sales and use taxes for all
signatory states.
(d) No nexus attribution. The Agreement must provide
that registration with the central registration system and
the collection of sales and use taxes in the signatory states
will not be used as a factor in determining whether the
seller has nexus with a state for any tax.
(e) Local sales and use taxes. The Agreement must
provide for reduction of the burdens of complying with local
sales and use taxes, as those terms are defined by each
signatory state in the Act by which the state authorizes its
entry into the Agreement, through the following:
(1) Restricting variances between the State and
local tax bases.
(2) Requiring states to administer any sales and
use taxes levied by local jurisdictions within the state
so that sellers collecting and remitting these taxes will
not have to register or file returns with, remit funds
to, or be subject to independent audits from local taxing
jurisdictions with regard to these taxes.
(3) Restricting the frequency of changes in the
local sales and use tax rates and setting effective dates
for the application of local jurisdictional boundary
changes to local sales and use taxes.
(4) Providing notice of changes in local sales and
use tax rates and of changes in the boundaries of local
taxing jurisdictions.
(f) Monetary allowances. The Agreement must outline any
monetary allowances that are to be provided by the states to
sellers or certified service providers. The Agreement must
allow for a joint public and private sector study of the
compliance cost on sellers and certified service providers to
collect sales and use taxes for state and local governments
under various levels of complexity to be completed by July 1,
2002.
(g) State compliance. The Agreement must require each
state to certify compliance with the terms of the Agreement
prior to joining and to maintain compliance, under the laws
of the member state, with all provisions of the Agreement
while a member.
(h) Consumer privacy. The Agreement must require each
state to adopt a uniform policy for certified service
providers that protects the privacy of consumers and
maintains the confidentiality of tax information.
(i) Advisory councils. The Agreement must provide for
the appointment of an advisory council of private sector
representatives and an advisory council of non-member state
representatives to consult with in the administration of the
Agreement.
(j) Nothing in the Agreement shall require a signatory
state to administer a tax levied by a local jurisdiction
unless the tax is a sales tax or use tax as defined by the
signatory state in the Act by which the state authorizes its
entry into the Agreement.
Section 8. Cooperating sovereigns. The Agreement
authorized by this Act is an accord among individual
cooperating sovereigns in furtherance of their governmental
functions. The Agreement provides a mechanism among the
member states to establish and maintain a cooperative,
simplified system for the application and administration of
sales and use taxes under the duly adopted law of each member
state.
Section 9. Limited binding and beneficial effect.
(a) The Agreement authorized by this Act binds and
inures only to the benefit of this State and the other member
states. No person, other than a member state, is an intended
beneficiary of the Agreement. Any benefit to a person other
than a state is established by the law of this State and the
other member states and not by the terms of the Agreement.
(b) Consistent with subsection (a), no person shall have
any cause of action or defense under the Agreement or by
virtue of this State's approval of the Agreement. No person
may challenge, in any action brought under any provision of
law, any action or inaction by any department, agency, or
other instrumentality of this State, or any political
subdivision of this State on the ground that the action or
inaction is inconsistent with the Agreement.
(c) No law of this State, or the application thereof,
may be declared invalid as to any person or circumstance on
the ground that the provision or application is inconsistent
with the Agreement.
Section 10. Seller and third party liability.
(a) A certified service provider is the agent of a
seller, with whom the certified service provider has
contracted, for the collection and remittance of sales and
use taxes. As the seller's agent, the certified service
provider is liable for sales and use tax due each member
state on all sales transactions it processes for the seller
except as set out in this Section.
A seller that contracts with a certified service provider
is not liable to the State for sales or use tax due on
transactions processed by the certified service provider
unless the seller misrepresented the type of items it sells
or committed fraud. In the absence of probable cause to
believe that the seller has committed fraud or made a
material misrepresentation, the seller is not subject to
audit on the transactions processed by the certified service
provider. A seller is subject to audit for transactions not
processed by the certified service provider. The member
states acting jointly may perform a system check of the
seller and review the seller's procedures to determine if the
certified service provider's system is functioning properly
and the extent to which the seller's transactions are being
processed by the certified service provider.
(b) A person that provides a certified automated system
is responsible for the proper functioning of that system and
is liable to the State for underpayments of tax attributable
to errors in the functioning of the certified automated
system. A seller that uses a certified automated system
remains responsible and is liable to the State for reporting
and remitting tax.
(c) A seller that has a proprietary system for
determining the amount of tax due on transactions and has
signed an agreement establishing a performance standard for
that system is liable for the failure of the system to meet
the performance standard.
Section 905. The Illinois Municipal Code is amended by
changing Section 8-11-6 as follows:
(65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
Sec. 8-11-6. Home Rule Municipal Use Tax Act.
(a) The corporate authorities of a home rule
municipality may impose a tax upon the privilege of using, in
such municipality, any item of tangible personal property
which is purchased at retail from a retailer, and which is
titled or registered at a location within the corporate
limits of such home rule municipality with an agency of this
State's government, at a rate which is an increment of 1/4%
and based on the selling price of such tangible personal
property, as "selling price" is defined in the Use Tax Act.
In home rule municipalities with less than 2,000,000
inhabitants, the tax shall be collected by the municipality
imposing the tax from persons whose Illinois address for
titling or registration purposes is given as being in such
municipality.
(b) In home rule municipalities with 2,000,000 or more
inhabitants, the corporate authorities of the municipality
may additionally impose a tax beginning July 1, 1991 upon the
privilege of using in the municipality, any item of tangible
personal property, other than tangible personal property
titled or registered with an agency of the State's
government, that is purchased at retail from a retailer
located outside the corporate limits of the municipality, at
a rate that is an increment of 1/4% not to exceed 1% and
based on the selling price of the tangible personal property,
as "selling price" is defined in the Use Tax Act. Such tax
shall be collected from the purchaser or the retailer either
by the municipality imposing such tax or by the Department of
Revenue pursuant to an agreement between the Department and
the municipality.
To prevent multiple home rule taxation, the use in a home
rule municipality of tangible personal property that is
acquired outside the municipality and caused to be brought
into the municipality by a person who has already paid a home
rule municipal tax in another municipality in respect to the
sale, purchase, or use of that property, shall be exempt to
the extent of the amount of the tax properly due and paid in
the other home rule municipality.
(c) If a municipality having 2,000,000 or more
inhabitants imposes the tax authorized by subsection (a),
then the tax shall be collected by the Illinois Department of
Revenue when the property is purchased at retail from a
retailer in the county in which the home rule municipality
imposing the tax is located, and in all contiguous counties.
The tax shall be remitted to the State, or an exemption
determination must be obtained from the Department 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
State officer with whom, the tangible personal property must
be titled or registered if the Department and that agency or
State officer determine that this procedure will expedite the
processing of applications for title or registration.
The Department shall have full power to administer and
enforce this Section to collect all taxes, penalties and
interest due hereunder, to dispose of taxes, penalties and
interest so collected in the manner hereinafter provided, and
determine all rights to credit memoranda or refunds arising
on account of the erroneous payment of tax, penalty or
interest hereunder. In the administration of and compliance
with this Section the Department and persons who are subject
to this Section shall have the same rights, remedies,
privileges, immunities, powers and duties, and be subject to
the same conditions, restrictions, limitations, penalties and
definitions of terms, and 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
(except provisions pertaining to the State rate of tax, and
except provisions concerning collection or refunding of the
tax by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22
of the Use Tax Act, which are not inconsistent with this
Section, as fully as if provisions contained in those
Sections of the Use Tax Act were set forth herein.
Whenever the Department determines that a refund shall 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 such
notification from the Department. Such refund shall be paid
by the State Treasurer out of the home rule municipal
retailers' occupation tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes, penalties and
interest collected hereunder. On or before the 25th day of
each calendar month, the Department shall prepare and certify
to the State Comptroller the disbursement of stated sums of
money to named municipalities, the municipality in each
instance to be that municipality from which the Department
during the second preceding calendar month, collected
municipal use tax from any person whose Illinois address for
titling or registration purposes is given as being in such
municipality. The amount to be paid to each municipality
shall be the amount (not including credit memoranda)
collected hereunder during the second preceding calendar
month by the Department, and not including an amount equal to
the amount of refunds made during the second preceding
calendar month by the Department on behalf of such
municipality, less the amount expended during the second
preceding month by the Department to be paid from the
appropriation to the Department from the Home Rule Municipal
Retailers' Occupation Tax Trust Fund. The appropriation to
cover the costs incurred by the Department in administering
and enforcing this Section shall not exceed 2% of the amount
estimated to be deposited into the Home Rule Municipal
Retailers' Occupation Tax Trust Fund during the fiscal year
for which the appropriation is made. Within 10 days after
receipt by the State Comptroller of the disbursement
certification to the municipalities provided for in this
Section to be given to the State Comptroller by the
Department, the State Comptroller shall cause the orders to
be drawn for the respective amounts in accordance with the
directions contained in that certification.
Any ordinance imposing or discontinuing any tax to be
collected and enforced by the Department under this Section
shall be adopted and a certified copy thereof filed with the
Department on or before October 1, whereupon the Department
of Revenue shall proceed to administer and enforce this
Section on behalf of the municipalities as of January 1 next
following such adoption and filing. Beginning April 1, 1998,
any ordinance imposing or discontinuing any tax to be
collected and enforced by the Department under this Section
shall either (i) be adopted and a certified copy thereof
filed with the Department on or before April 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the municipalities as of July 1
next following the adoption and filing; or (ii) be adopted
and a certified copy thereof filed with the Department on or
before October 1, whereupon the Department of Revenue shall
proceed to administer and enforce this Section on behalf of
the municipalities as of January 1 next following the
adoption and filing.
Nothing in this subsection (c) shall prevent a home rule
municipality from collecting the tax pursuant to subsection
(a) in any situation where such tax is not collected by the
Department of Revenue under this subsection (c).
(d) Any unobligated balance remaining in the Municipal
Retailers' Occupation Tax Fund on December 31, 1989, which
fund was abolished by Public Act 85-1135, and all receipts of
municipal tax as a result of audits of liability periods
prior to January 1, 1990, shall be paid into the Local
Government Tax Fund, for distribution as provided by this
Section prior to the enactment of Public Act 85-1135. All
receipts of municipal tax as a result of an assessment not
arising from an audit, for liability periods prior to January
1, 1990, shall be paid into the Local Government Tax Fund for
distribution before July 1, 1990, as provided by this Section
prior to the enactment of Public Act 85-1135, and on and
after July 1, 1990, all such receipts shall be distributed as
provided in Section 6z-18 of the State Finance Act.
(e) As used in this Section, "Municipal" and
"Municipality" means a city, village or incorporated town,
including an incorporated town which has superseded a civil
township.
(f) This Section shall be known and may be cited as the
Home Rule Municipal Use Tax Act.
(Source: P.A. 90-562, eff. 12-16-97; 90-689, eff. 7-31-98;
91-51, eff. 6-30-99.)
Section 910. The Regional Transportation Authority Act
is amended by changing Section 4.03 as follows:
(70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
Sec. 4.03. Taxes.
(a) In order to carry out any of the powers or purposes
of the Authority, the Board may by ordinance adopted with the
concurrence of 9 of the then Directors, impose throughout the
metropolitan region any or all of the taxes provided in this
Section. Except as otherwise provided in this Act, taxes
imposed under this Section and civil penalties imposed
incident thereto shall be collected and enforced by the State
Department of Revenue. The Department shall have the power to
administer and enforce the taxes and to determine all rights
for refunds for erroneous payments of the taxes.
(b) The Board may impose a public transportation tax
upon all persons engaged in the metropolitan region in the
business of selling at retail motor fuel for operation of
motor vehicles upon public highways. The tax shall be at a
rate not to exceed 5% of the gross receipts from the sales of
motor fuel in the course of the business. As used in this
Act, the term "motor fuel" shall have the same meaning as in
the Motor Fuel Tax Act. The Board may provide for details of
the tax. The provisions of any tax shall conform, as closely
as may be practicable, to the provisions of the Municipal
Retailers Occupation Tax Act, including without limitation,
conformity to penalties with respect to the tax imposed and
as to the powers of the State Department of Revenue to
promulgate and enforce rules and regulations relating to the
administration and enforcement of the provisions of the tax
imposed, except that reference in the Act to any municipality
shall refer to the Authority and the tax shall be imposed
only with regard to receipts from sales of motor fuel in the
metropolitan region, at rates as limited by this Section.
(c) In connection with the tax imposed under paragraph
(b) of this Section the Board may impose a tax upon the
privilege of using in the metropolitan region motor fuel for
the operation of a motor vehicle upon public highways, the
tax to be at a rate not in excess of the rate of tax imposed
under paragraph (b) of this Section. The Board may provide
for details of the tax.
(d) The Board may impose a motor vehicle parking tax
upon the privilege of parking motor vehicles at off-street
parking facilities in the metropolitan region at which a fee
is charged, and may provide for reasonable classifications in
and exemptions to the tax, for administration and enforcement
thereof and for civil penalties and refunds thereunder and
may provide criminal penalties thereunder, the maximum
penalties not to exceed the maximum criminal penalties
provided in the Retailers' Occupation Tax Act. The Authority
may collect and enforce the tax itself or by contract with
any unit of local government. The State Department of
Revenue shall have no responsibility for the collection and
enforcement unless the Department agrees with the Authority
to undertake the collection and enforcement. As used in this
paragraph, the term "parking facility" means a parking area
or structure having parking spaces for more than 2 vehicles
at which motor vehicles are permitted to park in return for
an hourly, daily, or other periodic fee, whether publicly or
privately owned, but does not include parking spaces on a
public street, the use of which is regulated by parking
meters.
(e) The Board may impose a Regional Transportation
Authority Retailers' Occupation Tax upon all persons engaged
in the business of selling tangible personal property at
retail in the metropolitan region. In Cook County the tax
rate shall be 1% of the gross receipts from 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 that has been prepared for immediate consumption)
and prescription and nonprescription medicines, drugs,
medical appliances and insulin, urine testing materials,
syringes and needles used by diabetics, and 3/4% of the gross
receipts from other taxable sales made in the course of that
business. In DuPage, Kane, Lake, McHenry, and Will Counties,
the tax rate shall be 1/4% of the gross receipts from all
taxable sales made in the course of that business. The tax
imposed under this Section and all civil penalties that may
be assessed as an incident thereof shall be collected and
enforced by the State Department of Revenue. The Department
shall have full power to administer and enforce this Section;
to collect all 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 Section, the Department and persons who
are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms,
and employ the same modes of procedure, as are prescribed in
Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
(in respect to all provisions therein other than the State
rate of tax), 2c, 3 (except as to the disposition of taxes
and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 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 herein.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder 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 under the Use Tax Act, under any
bracket schedules 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 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 Regional Transportation
Authority tax fund established under paragraph (n) of this
Section.
If a tax is imposed under this subsection (e), a tax
shall also be imposed under subsections (f) and (g) 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 other 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 other 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 Regional Transportation Authority 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) If a tax has been imposed under paragraph (e), a
Regional Transportation Authority Service Occupation Tax
shall also be imposed upon all persons engaged, in the
metropolitan region in the business of making sales of
service, who as an incident to making the sales of service,
transfer tangible personal property within the metropolitan
region, either in the form of tangible personal property or
in the form of real estate as an incident to a sale of
service. In Cook County, the tax rate shall be: (1) 1% of
the serviceman's cost price of food prepared for immediate
consumption and transferred incident to a sale of service
subject to the service occupation tax by an entity licensed
under the Hospital Licensing Act or the Nursing Home Care Act
that is located in the metropolitan region; (2) 1% of the
selling price 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
nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes and needles used
by diabetics; and (3) 3/4% of the selling price from other
taxable sales of tangible personal property transferred. In
DuPage, Kane, Lake, McHenry and Will Counties the rate shall
be 1/4% of the selling price of all tangible personal
property transferred.
The tax imposed under this paragraph and all civil
penalties that may be assessed as an incident thereof shall
be collected and enforced by the State Department of Revenue.
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes and penalties
due hereunder; to dispose of taxes and penalties 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 paragraph, the Department and
persons who are subject to this paragraph shall have the same
rights, remedies, privileges, immunities, powers and duties,
and be subject to the same conditions, restrictions,
limitations, penalties, exclusions, exemptions and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1a-1, 2, 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 Authority), 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 Authority), 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
Authority), 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 paragraph may reimburse themselves for their
serviceman's tax liability hereunder by separately stating
the tax as an additional charge, that 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,
under any bracket schedules the Department may prescribe.
Whenever the Department determines that a refund should
be made under this paragraph 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 Regional Transportation Authority tax
fund established under paragraph (n) of this Section.
Nothing in this paragraph shall be construed to authorize
the Authority 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.
(g) If a tax has been imposed under paragraph (e), a tax
shall also be imposed upon the privilege of using in the
metropolitan region, any item of tangible personal property
that is purchased outside the metropolitan region at retail
from a retailer, and that is titled or registered with an
agency of this State's government. In Cook County the tax
rate shall be 3/4% of the selling price of the tangible
personal property, as "selling price" is defined in the Use
Tax Act. In DuPage, Kane, Lake, McHenry and Will counties
the tax rate shall be 1/4% of the selling price of the
tangible personal property, as "selling price" is defined 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 metropolitan region. The tax shall
be collected by the Department of Revenue for the Regional
Transportation Authority. 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 shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties and
interest due hereunder; to dispose of taxes, penalties and
interest collected in the manner hereinafter provided; and to
determine all rights to credit memoranda or refunds arising
on account of the erroneous payment of tax, penalty or
interest hereunder. In the administration of and compliance
with this paragraph, the Department and persons who are
subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms
and 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 through 3-80 (except
provisions pertaining to the State rate of tax, and except
provisions concerning collection or refunding of the tax by
retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
pertaining to claims by retailers and except the last
paragraph concerning refunds), 20, 21 and 22 of the Use Tax
Act, and are not inconsistent with this paragraph, as fully
as if those provisions were set forth herein.
Whenever the Department determines that a refund should
be made under this paragraph 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 Regional Transportation Authority tax
fund established under paragraph (n) of this Section.
(h) The Authority may impose a replacement vehicle tax
of $50 on any passenger car as defined in Section 1-157 of
the Illinois Vehicle Code purchased within the metropolitan
region by or on behalf of an insurance company to replace a
passenger car of an insured person in settlement of a total
loss claim. The tax imposed may not become effective before
the first day of the month following the passage of the
ordinance imposing the tax and receipt of a certified copy of
the ordinance by the Department of Revenue. The Department
of Revenue shall collect the tax for the Authority in
accordance with Sections 3-2002 and 3-2003 of the Illinois
Vehicle Code.
The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes collected
hereunder. 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 Authority.
The amount to be paid to the Authority shall be the amount
collected hereunder during the second preceding calendar
month by the Department, 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
disbursement certification to the Authority provided for in
this Section to be given to the Comptroller by the
Department, the Comptroller shall cause the orders to be
drawn for that amount in accordance with the directions
contained in the certification.
(i) The Board may not impose any other taxes except as
it may from time to time be authorized by law to impose.
(j) 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), (e), (f) or
(g) of this Section and no additional registration shall be
required under the tax. 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.
(k) The provisions of any tax imposed under paragraph
(c) of this Section shall conform as closely as may be
practicable to the provisions of the Use Tax Act, including
without limitation conformity as to penalties with respect to
the tax imposed and as to the powers of the State Department
of Revenue to promulgate and enforce rules and regulations
relating to the administration and enforcement of the
provisions of the tax imposed. The taxes shall be imposed
only on use within the metropolitan region and at rates as
provided in the paragraph.
(l) The Board in imposing any tax as provided in
paragraphs (b) and (c) of this Section, shall, after seeking
the advice of the State Department of Revenue, provide means
for retailers, users or purchasers of motor fuel for purposes
other than those with regard to which the taxes may be
imposed as provided in those paragraphs to receive refunds of
taxes improperly paid, which provisions may be at variance
with the refund provisions as applicable under the Municipal
Retailers Occupation Tax Act. The State Department of
Revenue may provide for certificates of registration for
users or purchasers of motor fuel for purposes other than
those with regard to which taxes may be imposed as provided
in paragraphs (b) and (c) of this Section to facilitate the
reporting and nontaxability of the exempt sales or uses.
(m) Any ordinance imposing or discontinuing any tax
under this Section shall be adopted and a certified copy
thereof filed with the Department on or before June 1,
whereupon the Department of Revenue shall proceed to
administer and enforce this Section on behalf of the Regional
Transportation Authority as of September 1 next following
such adoption and filing. Beginning January 1, 1992, an
ordinance or resolution imposing or discontinuing the tax
hereunder shall be adopted and a certified copy thereof filed
with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1,
1993, an ordinance or resolution imposing or discontinuing
the tax hereunder shall be adopted and a certified copy
thereof filed with the Department on or before the first day
of October, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
January next following such adoption and filing.
(n) The State Department of Revenue shall, upon
collecting any taxes as provided in this Section, pay the
taxes over to the State Treasurer as trustee for the
Authority. The taxes shall be held in a trust fund outside
the State Treasury. On or before the 25th day of each
calendar month, the State Department of Revenue shall prepare
and certify to the Comptroller of the State of Illinois the
amount to be paid to the Authority, which shall be the then
balance in the fund, less any amount determined by the
Department to be necessary for the payment of refunds. The
State Department of Revenue shall also certify to the
Authority the amount of taxes collected in each County other
than Cook County in the metropolitan region less the amount
necessary for the payment of refunds to taxpayers in the
County. With regard to the County of Cook, the certification
shall specify the amount of taxes collected within the City
of Chicago less the amount necessary for the payment of
refunds to taxpayers in the City of Chicago and the amount
collected in that portion of Cook County outside of Chicago
less the amount necessary for the payment of refunds to
taxpayers in that portion of Cook County outside of Chicago.
Within 10 days after receipt by the Comptroller of the
certification of the amount to be paid to the Authority, the
Comptroller shall cause an order to be drawn for the payment
for the amount in accordance with the direction in the
certification.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in July 1991 and each
year thereafter to the Regional Transportation Authority.
The allocation shall be made in an amount equal to the
average monthly distribution during the preceding calendar
year (excluding the 2 months of lowest receipts) and the
allocation shall include the amount of average monthly
distribution from the Regional Transportation Authority
Occupation and Use Tax Replacement Fund. The distribution
made in July 1992 and each year thereafter under 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 of Revenue shall
prepare and certify to the Comptroller for disbursement the
allocations made in accordance with this paragraph.
(o) Failure to adopt a budget ordinance or otherwise to
comply with Section 4.01 of this Act or to adopt a Five-year
Program or otherwise to comply with paragraph (b) of Section
2.01 of this Act shall not affect the validity of any tax
imposed by the Authority otherwise in conformity with law.
(p) At no time shall a public transportation tax or
motor vehicle parking tax authorized under paragraphs (b),
(c) and (d) of this Section be in effect at the same time as
any retailers' occupation, use or service occupation tax
authorized under paragraphs (e), (f) and (g) of this Section
is in effect.
Any taxes imposed under the authority provided in
paragraphs (b), (c) and (d) shall remain in effect only until
the time as any tax authorized by paragraphs (e), (f) or (g)
of this Section are imposed and becomes effective. Once any
tax authorized by paragraphs (e), (f) or (g) is imposed the
Board may not reimpose taxes as authorized in paragraphs (b),
(c) and (d) of the Section unless any tax authorized by
paragraphs (e), (f) or (g) of this Section becomes
ineffective by means other than an ordinance of the Board.
(q) Any existing rights, remedies and obligations
(including enforcement by the Regional Transportation
Authority) arising under any tax imposed under paragraphs
(b), (c) or (d) of this Section shall not be affected by the
imposition of a tax under paragraphs (e), (f) or (g) of this
Section.
(Source: P.A. 91-51, eff. 6-30-99.)
Section 915. The Water Commission Act of 1985 is amended
by changing Section 4 as follows:
(70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
Sec. 4. (a) The board of commissioners of any county
water commission may, by ordinance, impose throughout the
territory of the commission any or all of the taxes provided
in this Section for its corporate purposes. However, no
county water commission may impose any such tax unless the
commission certifies the proposition of imposing the tax to
the proper election officials, who shall submit the
proposition to the voters residing in the territory at an
election in accordance with the general election law, and the
proposition has been approved by a majority of those voting
on the proposition.
The proposition shall be in the form provided in Section
5 or shall be substantially in the following form:
-------------------------------------------------------------
Shall the (insert corporate
name of county water commission) YES
impose (state type of tax or ------------------------
taxes to be imposed) at the NO
rate of 1/4%?
-------------------------------------------------------------
Taxes imposed under this Section and civil penalties
imposed incident thereto shall be collected and enforced by
the State Department of Revenue. The Department shall have
the power to administer and enforce the taxes and to
determine all rights for refunds for erroneous payments of
the taxes.
(b) The board of commissioners may impose a County Water
Commission Retailers' Occupation Tax upon all persons engaged
in the business of selling tangible personal property at
retail in the territory of the commission at a rate of 1/4%
of the gross receipts from the sales made in the course of
such business within the territory. The tax imposed under
this paragraph and all civil penalties that may be assessed
as an incident thereof shall be collected and enforced by the
State Department of Revenue. The Department shall have full
power to administer and enforce this paragraph; 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 paragraph, the Department and persons who are subject to
this paragraph shall have the same rights, remedies,
privileges, immunities, powers and duties, and be subject to
the same conditions, restrictions, limitations, penalties,
exclusions, exemptions and definitions of terms, and employ
the same modes of procedure, as are prescribed in Sections 1,
1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect
to all provisions therein other than the State rate of tax
except that 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 nonprescription
medicine, drugs, medical appliances and insulin, urine
testing materials, syringes, and needles used by diabetics,
for human use, shall not be subject to tax hereunder), 2c, 3
(except as to the disposition of taxes and penalties
collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 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 herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
seller's tax liability hereunder 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 under the Use Tax Act and
under subsection (e) of Section 4.03 of the Regional
Transportation Authority Act, in accordance with such bracket
schedules as the Department may prescribe.
Whenever the Department determines that a refund should
be made under this paragraph 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 a county water commission tax
fund established under paragraph (g) of this Section.
For the purpose of determining whether a tax authorized
under this paragraph is applicable, a retail sale by a
producer of coal or other 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 other 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.
If a tax is imposed under this subsection (b) a tax shall
also be imposed under subsections (c) and (d) of this
Section.
Nothing in this paragraph shall be construed to authorize
a county water commission 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
this State.
(c) If a tax has been imposed under subsection (b), a
County Water Commission Service Occupation Tax shall also be
imposed upon all persons engaged, in the territory of the
commission, in the business of making sales of service, who,
as an incident to making the sales of service, transfer
tangible personal property within the territory. The tax rate
shall be 1/4% of the selling price of tangible personal
property so transferred within the territory. The tax
imposed under this paragraph and all civil penalties that may
be assessed as an incident thereof shall be collected and
enforced by the State Department of Revenue. The Department
shall have full power to administer and enforce this
paragraph; 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 paragraph, the Department and persons
who are subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms,
and 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 territory of the commission), 2a, 3
through 3-50 (in respect to all provisions therein other than
the State rate of tax except that 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 nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes, and needles used
by diabetics, for human use, shall not be subject to tax
hereunder), 4 (except that the reference to the State shall
be to the territory of the commission), 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 commission),
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 territory of the commission), the first
paragraph of Section 15, 15.5, 16, 17, 18, 19 and 20 of the
Service Occupation Tax Act as fully as if those provisions
were set forth herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
serviceman's tax liability hereunder 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, and any tax for which servicemen may be liable under
subsection (f) of Sec. 4.03 of the Regional Transportation
Authority Act, in accordance with such bracket schedules as
the Department may prescribe.
Whenever the Department determines that a refund should
be made under this paragraph 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 a county water commission tax
fund established under paragraph (g) of this Section.
Nothing in this paragraph shall be construed to authorize
a county water commission 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.
(d) If a tax has been imposed under subsection (b), a
tax shall also imposed upon the privilege of using, in the
territory of the commission, any item of tangible personal
property that is purchased outside the territory at retail
from a retailer, and that is titled or registered with an
agency of this State's government, at a rate of 1/4% of the
selling price of the tangible personal property within the
territory, as "selling price" is defined 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 territory. The tax shall be collected by the
Department of Revenue for a county water commission. 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 shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties and
interest due hereunder; to dispose of taxes, penalties and
interest so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda or refunds
arising on account of the erroneous payment of tax, penalty
or interest hereunder. In the administration of, and
compliance with this paragraph, the Department and persons
who are subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms
and 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 through 3-80 (except
provisions pertaining to the State rate of tax, and except
provisions concerning collection or refunding of the tax by
retailers, and except that 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
nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes, and needles used
by diabetics, for human use, shall not be subject to tax
hereunder), 4, 11, 12, 12a, 14, 15, 19 (except the portions
pertaining to claims by retailers and except the last
paragraph concerning refunds), 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 herein.
Whenever the Department determines that a refund should
be made under this paragraph 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 a county water commission tax
fund established 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 under the tax. 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) Any ordinance imposing or discontinuing any tax
under this Section shall be adopted and a certified copy
thereof filed with the Department on or before June 1,
whereupon the Department of Revenue shall proceed to
administer and enforce this Section on behalf of the county
water commission as of September 1 next following the
adoption and filing. Beginning January 1, 1992, an ordinance
or resolution imposing or discontinuing the tax hereunder
shall be adopted and a certified copy thereof filed with the
Department on or before the first day of July, whereupon the
Department shall proceed to administer and enforce this
Section as of the first day of October next following such
adoption and filing. Beginning January 1, 1993, an ordinance
or resolution imposing or discontinuing the tax hereunder
shall be adopted and a certified copy thereof filed with the
Department on or before the first day of October, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of January next following such
adoption and filing.
(g) The State Department of Revenue shall, upon
collecting any taxes as provided in this Section, pay the
taxes over to the State Treasurer as trustee for the
commission. The taxes shall be held in a trust fund outside
the State Treasury. On or before the 25th day of each
calendar month, the State Department of Revenue shall prepare
and certify to the Comptroller of the State of Illinois the
amount to be paid to the commission, which shall be the then
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 commission, the Comptroller
shall cause an order to be drawn for the payment for the
amount in accordance with the direction in the certification.
(Source: P.A. 91-51, eff. 6-30-99.)
Section 999. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 09, 2001.
Approved August 02, 2001.
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