101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2682

 

Introduced , by Rep. Michael J. Zalewski

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the State Finance Act. Creates the State Aviation Program Fund, the Local Government Aviation Trust Fund, and the Aviation Fuel Sales Tax Refund Fund. Provides that moneys in the State Aviation Program Fund shall be used by the Department of Transportation for the purposes of administering a State Aviation Program. Provides that the State Aviation Program shall include grants to units of local government for airport-related purposes. Provides that moneys in the Local Government Aviation Trust Fund shall be used by units of local government for airport-related purposes. Provides that moneys in the Aviation Fuel Sales Tax Refund Fund shall be used by the Department of Revenue to pay refunds. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act to provide that moneys received from the tax paid on aviation fuel shall be deposited into those Funds. Amends the Motor Fuel Tax Law to provide that certain money received by the Department of Revenue for aviation fuel sold or used on or after December 1 shall be deposited into the State Aviation Program Fund. Amends the Innovation Development and Economy Act, the Counties Code, the Illinois Municipal Code, the Civic Center Code, the Flood Prevention District Act, the Metro-East Park and Recreation District Act, the Local Mass Transit District Act, the Regional Transportation Authority Act, and the Water Commission Act of 1985. Prohibits certain local retailers' occupation taxes on aviation fuel unless the unit of local government has an airport-related purpose. Amends the Illinois Municipal Code. Requires municipalities that have implemented a Residential Sound Insulation Program to perform an in-home air quality test at a residence located in the municipality if certain conditions are met. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2682LRB101 09562 HLH 54660 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Sections 5.891, 5.892, 5.893, 6z-20.1, 6z-20.2, and 6z-20.3 as
6follows:
 
7    (30 ILCS 105/5.891 new)
8    Sec. 5.891. The State Aviation Program Fund.
 
9    (30 ILCS 105/5.892 new)
10    Sec. 5.892. The Local Government Aviation Trust Fund.
 
11    (30 ILCS 105/5.893 new)
12    Sec. 5.893. The Aviation Fuel Sales Tax Refund Fund.
 
13    (30 ILCS 105/6z-20.1 new)
14    Sec. 6z-20.1. The State Aviation Program Fund.
15    (a) The State Aviation Program Fund is created in the State
16Treasury. Moneys in the Fund shall be used by the Department of
17Transportation for the purposes of administering a State
18Aviation Program. Subject to appropriation, the moneys shall be
19used for the purpose of distributing grants to units of local
20government to be used for airport-related purposes. Grants to

 

 

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1units of local government from the Fund shall be distributed
2proportionately based on equal part enplanements, total cargo,
3and airport operations. With regard to enplanements that occur
4within a municipality with a population of over 500,000, grants
5shall be distributed only to the municipality.
6    (b) For grants to a unit of government, "airport-related
7purposes" means the capital costs of: (1) an airport; (2) a
8local airport system; or (3) any other local facility that is
9owned or operated by the person or entity that owns or operates
10the airport that is directly and substantially related to the
11air transportation of passengers or property as provided in 49
12U.S.C. 47133, including (i) the replacement of sound-reducing
13windows and doors installed under the Residential Sound
14Insulation Program and (ii) in-home air quality testing in
15residences in which windows or doors were installed under the
16Residential Sound Insulation Program.
 
17    (30 ILCS 105/6z-20.2 new)
18    Sec. 6z-20.2. The Local Government Aviation Trust Fund. The
19Local Government Aviation Trust Fund is created as a trust fund
20in the State Treasury. Moneys in the Trust Fund shall be used
21by units of local government for airport-related purposes. For
22purposes of this Section, "airport-related purposes" means the
23capital or operating costs of: (1) an airport; (2) a local
24airport system; or (3) any other local facility that is owned
25or operated by the person or entity that owns or operates the

 

 

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1airport that is directly and substantially related to the air
2transportation of passengers or property as provided in 49
3U.S.C. 47133, including (i) the replacement of sound-reducing
4windows and doors installed under the Residential Sound
5Insulation Program and (ii) in-home air quality testing in
6residences in which windows or doors were installed under the
7Residential Sound Insulation Program.
8    Moneys in the Trust Fund are not subject to appropriation
9and shall be used solely as provided in this Section. All
10deposits into the Trust Fund shall be held in the Trust Fund by
11the State Treasurer, ex officio, as trustee separate and apart
12from all public moneys or funds of this State.
13    On or before the 25th day of each calendar month, the
14Department shall prepare and certify to the Comptroller the
15disbursement of stated sums of money to named units of local
16government, the units of local government to be those from
17which retailers or servicemen have paid tax or penalties to the
18Department during the second preceding calendar month on sales
19of aviation fuel. The amount to be paid to each unit of local
20government shall be the amount (not including credit memoranda)
21collected during the second preceding calendar month by the
22Department and paid into the Local Government Aviation Trust
23Fund, plus an amount the Department determines is necessary to
24offset any amounts which were erroneously paid to a different
25taxing body, and not including an amount equal to the amount of
26refunds made during the second preceding calendar month by the

 

 

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1Department, and not including any amount which the Department
2determines is necessary to offset any amounts which are payable
3to a different taxing body but were erroneously paid to the
4unit of local government. Within 10 days after receipt by the
5Comptroller of the certification for disbursement to the units
6of local government, provided for in this Section to be given
7to the Comptroller by the Department, the Comptroller shall
8cause the orders to be drawn for the respective amounts in
9accordance with the directions contained in the certification.
10    When certifying the amount of the monthly disbursement to a
11unit of local government under this Section, the Department
12shall increase or decrease that amount by an amount necessary
13to offset any misallocation of previous disbursements. The
14offset amount shall be the amount erroneously disbursed within
15the 6 months preceding the time a misallocation is discovered.
 
16    (30 ILCS 105/6z-20.3 new)
17    Sec. 6z-20.3. The Aviation Fuel Sales Tax Refund Fund.
18    (a) The Aviation Fuel Sales Tax Refund Fund is hereby
19created as a special fund in the State Treasury. Moneys in the
20Aviation Fuel Sales Tax Refund Fund shall be used by the
21Department of Revenue to pay refunds of Use Tax, Service Use
22Tax, Service Occupation Tax, and Retailers' Occupation Tax paid
23on aviation fuel in the manner provided in Section 19 of the
24Use Tax Act, Section 17 of the Service Use Tax Act, Section 17
25of the Service Occupation Tax Act, and Section 6 of the

 

 

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1Retailers' Occupation Tax Act.
2    (b) Moneys in the Aviation Fuel Sales Tax Refund Fund shall
3be expended exclusively for the purpose of paying refunds
4pursuant to this Section.
5    (c) The Director of Revenue shall order payment of refunds
6under this Section from the Aviation Fuel Sales Tax Refund Fund
7only to the extent that amounts collected pursuant to Section 3
8of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
9Act, Section 9 of the Service Occupation Tax Act, and Section 9
10of the Service Use Tax Act on aviation fuel have been deposited
11and retained in the Fund.
12    As soon as possible after the end of each fiscal year, the
13Director of Revenue shall order transferred and the State
14Treasurer and State Comptroller shall transfer from the
15Aviation Fuel Sales Tax Refund Fund to the State Aviation
16Program Fund 20% of any surplus remaining as of the end of such
17fiscal year and shall transfer from the Aviation Fuel Sales Tax
18Refund Fund to the General Revenue Fund 80% of any surplus
19remaining as of the end of such fiscal year.
20    This Section shall constitute an irrevocable and
21continuing appropriation from the Aviation Fuel Sales Tax
22Refund Fund for the purpose of paying refunds in accordance
23with the provisions of this Section.
 
24    Section 10. The Use Tax Act is amended by changing Sections
259 and 19 as follows:
 

 

 

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1    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
2    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
3and trailers that are required to be registered with an agency
4of this State, each retailer required or authorized to collect
5the tax imposed by this Act shall pay to the Department the
6amount of such tax (except as otherwise provided) at the time
7when he is required to file his return for the period during
8which such tax was collected, less a discount of 2.1% prior to
9January 1, 1990, and 1.75% on and after January 1, 1990, or $5
10per calendar year, whichever is greater, which is allowed to
11reimburse the retailer for expenses incurred in collecting the
12tax, keeping records, preparing and filing returns, remitting
13the tax and supplying data to the Department on request. The
14discount under this Section is not allowed for taxes paid on
15aviation fuel that are deposited into the State Aviation
16Program Fund under this Act. In the case of retailers who
17report and pay the tax on a transaction by transaction basis,
18as provided in this Section, such discount shall be taken with
19each such tax remittance instead of when such retailer files
20his periodic return. The discount allowed under this Section is
21allowed only for returns that are filed in the manner required
22by this Act. The Department may disallow the discount for
23retailers whose certificate of registration is revoked at the
24time the return is filed, but only if the Department's decision
25to revoke the certificate of registration has become final. A

 

 

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1retailer need not remit that part of any tax collected by him
2to the extent that he is required to remit and does remit the
3tax imposed by the Retailers' Occupation Tax Act, with respect
4to the sale of the same property.
5    Where such tangible personal property is sold under a
6conditional sales contract, or under any other form of sale
7wherein the payment of the principal sum, or a part thereof, is
8extended beyond the close of the period for which the return is
9filed, the retailer, in collecting the tax (except as to motor
10vehicles, watercraft, aircraft, and trailers that are required
11to be registered with an agency of this State), may collect for
12each tax return period, only the tax applicable to that part of
13the selling price actually received during such tax return
14period.
15    Except as provided in this Section, on or before the
16twentieth day of each calendar month, such retailer shall file
17a return for the preceding calendar month. Such return shall be
18filed on forms prescribed by the Department and shall furnish
19such information as the Department may reasonably require. On
20and after January 1, 2018, except for returns for motor
21vehicles, watercraft, aircraft, and trailers that are required
22to be registered with an agency of this State, with respect to
23retailers whose annual gross receipts average $20,000 or more,
24all returns required to be filed pursuant to this Act shall be
25filed electronically. Retailers who demonstrate that they do
26not have access to the Internet or demonstrate hardship in

 

 

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1filing electronically may petition the Department to waive the
2electronic filing requirement.
3    The Department may require returns to be filed on a
4quarterly basis. If so required, a return for each calendar
5quarter shall be filed on or before the twentieth day of the
6calendar month following the end of such calendar quarter. The
7taxpayer shall also file a return with the Department for each
8of the first two months of each calendar quarter, on or before
9the twentieth day of the following calendar month, stating:
10        1. The name of the seller;
11        2. The address of the principal place of business from
12    which he engages in the business of selling tangible
13    personal property at retail in this State;
14        3. The total amount of taxable receipts received by him
15    during the preceding calendar month from sales of tangible
16    personal property by him during such preceding calendar
17    month, including receipts from charge and time sales, but
18    less all deductions allowed by law;
19        4. The amount of credit provided in Section 2d of this
20    Act;
21        5. The amount of tax due;
22        5-5. The signature of the taxpayer; and
23        6. Such other reasonable information as the Department
24    may require.
25    Beginning on January 1, 2020, each retailer required or
26authorized to collect the tax imposed by this Act on aviation

 

 

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1fuel sold at retail in this State during the preceding calendar
2month shall, instead of reporting and paying tax on aviation
3fuel as otherwise required by this Section, file and pay tax to
4the Department on an aviation fuel tax return, on or before the
5twentieth day of each calendar month. The requirements related
6to the return shall be as otherwise provided in this Section.
7Notwithstanding any other provisions of this Act to the
8contrary, retailers collecting tax on aviation fuel shall file
9all aviation fuel tax returns and shall make all aviation fuel
10fee payments by electronic means in the manner and form
11required by the Department. For purposes of this paragraph,
12"aviation fuel" means a product that is intended for use or
13offered for sale as fuel for an aircraft.
14    If a taxpayer fails to sign a return within 30 days after
15the proper notice and demand for signature by the Department,
16the return shall be considered valid and any amount shown to be
17due on the return shall be deemed assessed.
18    Beginning October 1, 1993, a taxpayer who has an average
19monthly tax liability of $150,000 or more shall make all
20payments required by rules of the Department by electronic
21funds transfer. Beginning October 1, 1994, a taxpayer who has
22an average monthly tax liability of $100,000 or more shall make
23all payments required by rules of the Department by electronic
24funds transfer. Beginning October 1, 1995, a taxpayer who has
25an average monthly tax liability of $50,000 or more shall make
26all payments required by rules of the Department by electronic

 

 

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1funds transfer. Beginning October 1, 2000, a taxpayer who has
2an annual tax liability of $200,000 or more shall make all
3payments required by rules of the Department by electronic
4funds transfer. The term "annual tax liability" shall be the
5sum of the taxpayer's liabilities under this Act, and under all
6other State and local occupation and use tax laws administered
7by the Department, for the immediately preceding calendar year.
8The term "average monthly tax liability" means the sum of the
9taxpayer's liabilities under this Act, and under all other
10State and local occupation and use tax laws administered by the
11Department, for the immediately preceding calendar year
12divided by 12. Beginning on October 1, 2002, a taxpayer who has
13a tax liability in the amount set forth in subsection (b) of
14Section 2505-210 of the Department of Revenue Law shall make
15all payments required by rules of the Department by electronic
16funds transfer.
17    Before August 1 of each year beginning in 1993, the
18Department shall notify all taxpayers required to make payments
19by electronic funds transfer. All taxpayers required to make
20payments by electronic funds transfer shall make those payments
21for a minimum of one year beginning on October 1.
22    Any taxpayer not required to make payments by electronic
23funds transfer may make payments by electronic funds transfer
24with the permission of the Department.
25    All taxpayers required to make payment by electronic funds
26transfer and any taxpayers authorized to voluntarily make

 

 

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1payments by electronic funds transfer shall make those payments
2in the manner authorized by the Department.
3    The Department shall adopt such rules as are necessary to
4effectuate a program of electronic funds transfer and the
5requirements of this Section.
6    Before October 1, 2000, if the taxpayer's average monthly
7tax liability to the Department under this Act, the Retailers'
8Occupation Tax Act, the Service Occupation Tax Act, the Service
9Use Tax Act was $10,000 or more during the preceding 4 complete
10calendar quarters, he shall file a return with the Department
11each month by the 20th day of the month next following the
12month during which such tax liability is incurred and shall
13make payments to the Department on or before the 7th, 15th,
1422nd and last day of the month during which such liability is
15incurred. On and after October 1, 2000, if the taxpayer's
16average monthly tax liability to the Department under this Act,
17the Retailers' Occupation Tax Act, the Service Occupation Tax
18Act, and the Service Use Tax Act was $20,000 or more during the
19preceding 4 complete calendar quarters, he shall file a return
20with the Department each month by the 20th day of the month
21next following the month during which such tax liability is
22incurred and shall make payment to the Department on or before
23the 7th, 15th, 22nd and last day of the month during which such
24liability is incurred. If the month during which such tax
25liability is incurred began prior to January 1, 1985, each
26payment shall be in an amount equal to 1/4 of the taxpayer's

 

 

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1actual liability for the month or an amount set by the
2Department not to exceed 1/4 of the average monthly liability
3of the taxpayer to the Department for the preceding 4 complete
4calendar quarters (excluding the month of highest liability and
5the month of lowest liability in such 4 quarter period). If the
6month during which such tax liability is incurred begins on or
7after January 1, 1985, and prior to January 1, 1987, each
8payment shall be in an amount equal to 22.5% of the taxpayer's
9actual liability for the month or 27.5% of the taxpayer's
10liability for the same calendar month of the preceding year. If
11the month during which such tax liability is incurred begins on
12or after January 1, 1987, and prior to January 1, 1988, each
13payment shall be in an amount equal to 22.5% of the taxpayer's
14actual liability for the month or 26.25% of the taxpayer's
15liability for the same calendar month of the preceding year. If
16the month during which such tax liability is incurred begins on
17or after January 1, 1988, and prior to January 1, 1989, or
18begins on or after January 1, 1996, each payment shall be in an
19amount equal to 22.5% of the taxpayer's actual liability for
20the month or 25% of the taxpayer's liability for the same
21calendar month of the preceding year. If the month during which
22such tax liability is incurred begins on or after January 1,
231989, and prior to January 1, 1996, each payment shall be in an
24amount equal to 22.5% of the taxpayer's actual liability for
25the month or 25% of the taxpayer's liability for the same
26calendar month of the preceding year or 100% of the taxpayer's

 

 

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1actual liability for the quarter monthly reporting period. The
2amount of such quarter monthly payments shall be credited
3against the final tax liability of the taxpayer's return for
4that month. Before October 1, 2000, once applicable, the
5requirement of the making of quarter monthly payments to the
6Department shall continue until such taxpayer's average
7monthly liability to the Department during the preceding 4
8complete calendar quarters (excluding the month of highest
9liability and the month of lowest liability) is less than
10$9,000, or until such taxpayer's average monthly liability to
11the Department as computed for each calendar quarter of the 4
12preceding complete calendar quarter period is less than
13$10,000. However, if a taxpayer can show the Department that a
14substantial change in the taxpayer's business has occurred
15which causes the taxpayer to anticipate that his average
16monthly tax liability for the reasonably foreseeable future
17will fall below the $10,000 threshold stated above, then such
18taxpayer may petition the Department for change in such
19taxpayer's reporting status. On and after October 1, 2000, once
20applicable, the requirement of the making of quarter monthly
21payments to the Department shall continue until such taxpayer's
22average monthly liability to the Department during the
23preceding 4 complete calendar quarters (excluding the month of
24highest liability and the month of lowest liability) is less
25than $19,000 or until such taxpayer's average monthly liability
26to the Department as computed for each calendar quarter of the

 

 

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14 preceding complete calendar quarter period is less than
2$20,000. However, if a taxpayer can show the Department that a
3substantial change in the taxpayer's business has occurred
4which causes the taxpayer to anticipate that his average
5monthly tax liability for the reasonably foreseeable future
6will fall below the $20,000 threshold stated above, then such
7taxpayer may petition the Department for a change in such
8taxpayer's reporting status. The Department shall change such
9taxpayer's reporting status unless it finds that such change is
10seasonal in nature and not likely to be long term. If any such
11quarter monthly payment is not paid at the time or in the
12amount required by this Section, then the taxpayer shall be
13liable for penalties and interest on the difference between the
14minimum amount due and the amount of such quarter monthly
15payment actually and timely paid, except insofar as the
16taxpayer has previously made payments for that month to the
17Department in excess of the minimum payments previously due as
18provided in this Section. The Department shall make reasonable
19rules and regulations to govern the quarter monthly payment
20amount and quarter monthly payment dates for taxpayers who file
21on other than a calendar monthly basis.
22    If any such payment provided for in this Section exceeds
23the taxpayer's liabilities under this Act, the Retailers'
24Occupation Tax Act, the Service Occupation Tax Act and the
25Service Use Tax Act, as shown by an original monthly return,
26the Department shall issue to the taxpayer a credit memorandum

 

 

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1no later than 30 days after the date of payment, which
2memorandum may be submitted by the taxpayer to the Department
3in payment of tax liability subsequently to be remitted by the
4taxpayer to the Department or be assigned by the taxpayer to a
5similar taxpayer under this Act, the Retailers' Occupation Tax
6Act, the Service Occupation Tax Act or the Service Use Tax Act,
7in accordance with reasonable rules and regulations to be
8prescribed by the Department, except that if such excess
9payment is shown on an original monthly return and is made
10after December 31, 1986, no credit memorandum shall be issued,
11unless requested by the taxpayer. If no such request is made,
12the taxpayer may credit such excess payment against tax
13liability subsequently to be remitted by the taxpayer to the
14Department under this Act, the Retailers' Occupation Tax Act,
15the Service Occupation Tax Act or the Service Use Tax Act, in
16accordance with reasonable rules and regulations prescribed by
17the Department. If the Department subsequently determines that
18all or any part of the credit taken was not actually due to the
19taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
20be reduced by 2.1% or 1.75% of the difference between the
21credit taken and that actually due, and the taxpayer shall be
22liable for penalties and interest on such difference.
23    If the retailer is otherwise required to file a monthly
24return and if the retailer's average monthly tax liability to
25the Department does not exceed $200, the Department may
26authorize his returns to be filed on a quarter annual basis,

 

 

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1with the return for January, February, and March of a given
2year being due by April 20 of such year; with the return for
3April, May and June of a given year being due by July 20 of such
4year; with the return for July, August and September of a given
5year being due by October 20 of such year, and with the return
6for October, November and December of a given year being due by
7January 20 of the following year.
8    If the retailer is otherwise required to file a monthly or
9quarterly return and if the retailer's average monthly tax
10liability to the Department does not exceed $50, the Department
11may authorize his returns to be filed on an annual basis, with
12the return for a given year being due by January 20 of the
13following year.
14    Such quarter annual and annual returns, as to form and
15substance, shall be subject to the same requirements as monthly
16returns.
17    Notwithstanding any other provision in this Act concerning
18the time within which a retailer may file his return, in the
19case of any retailer who ceases to engage in a kind of business
20which makes him responsible for filing returns under this Act,
21such retailer shall file a final return under this Act with the
22Department not more than one month after discontinuing such
23business.
24    In addition, with respect to motor vehicles, watercraft,
25aircraft, and trailers that are required to be registered with
26an agency of this State, except as otherwise provided in this

 

 

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1Section, every retailer selling this kind of tangible personal
2property shall file, with the Department, upon a form to be
3prescribed and supplied by the Department, a separate return
4for each such item of tangible personal property which the
5retailer sells, except that if, in the same transaction, (i) a
6retailer of aircraft, watercraft, motor vehicles or trailers
7transfers more than one aircraft, watercraft, motor vehicle or
8trailer to another aircraft, watercraft, motor vehicle or
9trailer retailer for the purpose of resale or (ii) a retailer
10of aircraft, watercraft, motor vehicles, or trailers transfers
11more than one aircraft, watercraft, motor vehicle, or trailer
12to a purchaser for use as a qualifying rolling stock as
13provided in Section 3-55 of this Act, then that seller may
14report the transfer of all the aircraft, watercraft, motor
15vehicles or trailers involved in that transaction to the
16Department on the same uniform invoice-transaction reporting
17return form. For purposes of this Section, "watercraft" means a
18Class 2, Class 3, or Class 4 watercraft as defined in Section
193-2 of the Boat Registration and Safety Act, a personal
20watercraft, or any boat equipped with an inboard motor.
21    In addition, with respect to motor vehicles, watercraft,
22aircraft, and trailers that are required to be registered with
23an agency of this State, every person who is engaged in the
24business of leasing or renting such items and who, in
25connection with such business, sells any such item to a
26retailer for the purpose of resale is, notwithstanding any

 

 

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1other provision of this Section to the contrary, authorized to
2meet the return-filing requirement of this Act by reporting the
3transfer of all the aircraft, watercraft, motor vehicles, or
4trailers transferred for resale during a month to the
5Department on the same uniform invoice-transaction reporting
6return form on or before the 20th of the month following the
7month in which the transfer takes place. Notwithstanding any
8other provision of this Act to the contrary, all returns filed
9under this paragraph must be filed by electronic means in the
10manner and form as required by the Department.
11    The transaction reporting return in the case of motor
12vehicles or trailers that are required to be registered with an
13agency of this State, shall be the same document as the Uniform
14Invoice referred to in Section 5-402 of the Illinois Vehicle
15Code and must show the name and address of the seller; the name
16and address of the purchaser; the amount of the selling price
17including the amount allowed by the retailer for traded-in
18property, if any; the amount allowed by the retailer for the
19traded-in tangible personal property, if any, to the extent to
20which Section 2 of this Act allows an exemption for the value
21of traded-in property; the balance payable after deducting such
22trade-in allowance from the total selling price; the amount of
23tax due from the retailer with respect to such transaction; the
24amount of tax collected from the purchaser by the retailer on
25such transaction (or satisfactory evidence that such tax is not
26due in that particular instance, if that is claimed to be the

 

 

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1fact); the place and date of the sale; a sufficient
2identification of the property sold; such other information as
3is required in Section 5-402 of the Illinois Vehicle Code, and
4such other information as the Department may reasonably
5require.
6    The transaction reporting return in the case of watercraft
7and aircraft must show the name and address of the seller; the
8name and address of the purchaser; the amount of the selling
9price including the amount allowed by the retailer for
10traded-in property, if any; the amount allowed by the retailer
11for the traded-in tangible personal property, if any, to the
12extent to which Section 2 of this Act allows an exemption for
13the value of traded-in property; the balance payable after
14deducting such trade-in allowance from the total selling price;
15the amount of tax due from the retailer with respect to such
16transaction; the amount of tax collected from the purchaser by
17the retailer on such transaction (or satisfactory evidence that
18such tax is not due in that particular instance, if that is
19claimed to be the fact); the place and date of the sale, a
20sufficient identification of the property sold, and such other
21information as the Department may reasonably require.
22    Such transaction reporting return shall be filed not later
23than 20 days after the date of delivery of the item that is
24being sold, but may be filed by the retailer at any time sooner
25than that if he chooses to do so. The transaction reporting
26return and tax remittance or proof of exemption from the tax

 

 

HB2682- 20 -LRB101 09562 HLH 54660 b

1that is imposed by this Act may be transmitted to the
2Department by way of the State agency with which, or State
3officer with whom, the tangible personal property must be
4titled or registered (if titling or registration is required)
5if the Department and such agency or State officer determine
6that this procedure will expedite the processing of
7applications for title or registration.
8    With each such transaction reporting return, the retailer
9shall remit the proper amount of tax due (or shall submit
10satisfactory evidence that the sale is not taxable if that is
11the case), to the Department or its agents, whereupon the
12Department shall issue, in the purchaser's name, a tax receipt
13(or a certificate of exemption if the Department is satisfied
14that the particular sale is tax exempt) which such purchaser
15may submit to the agency with which, or State officer with
16whom, he must title or register the tangible personal property
17that is involved (if titling or registration is required) in
18support of such purchaser's application for an Illinois
19certificate or other evidence of title or registration to such
20tangible personal property.
21    No retailer's failure or refusal to remit tax under this
22Act precludes a user, who has paid the proper tax to the
23retailer, from obtaining his certificate of title or other
24evidence of title or registration (if titling or registration
25is required) upon satisfying the Department that such user has
26paid the proper tax (if tax is due) to the retailer. The

 

 

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1Department shall adopt appropriate rules to carry out the
2mandate of this paragraph.
3    If the user who would otherwise pay tax to the retailer
4wants the transaction reporting return filed and the payment of
5tax or proof of exemption made to the Department before the
6retailer is willing to take these actions and such user has not
7paid the tax to the retailer, such user may certify to the fact
8of such delay by the retailer, and may (upon the Department
9being satisfied of the truth of such certification) transmit
10the information required by the transaction reporting return
11and the remittance for tax or proof of exemption directly to
12the Department and obtain his tax receipt or exemption
13determination, in which event the transaction reporting return
14and tax remittance (if a tax payment was required) shall be
15credited by the Department to the proper retailer's account
16with the Department, but without the 2.1% or 1.75% discount
17provided for in this Section being allowed. When the user pays
18the tax directly to the Department, he shall pay the tax in the
19same amount and in the same form in which it would be remitted
20if the tax had been remitted to the Department by the retailer.
21    Where a retailer collects the tax with respect to the
22selling price of tangible personal property which he sells and
23the purchaser thereafter returns such tangible personal
24property and the retailer refunds the selling price thereof to
25the purchaser, such retailer shall also refund, to the
26purchaser, the tax so collected from the purchaser. When filing

 

 

HB2682- 22 -LRB101 09562 HLH 54660 b

1his return for the period in which he refunds such tax to the
2purchaser, the retailer may deduct the amount of the tax so
3refunded by him to the purchaser from any other use tax which
4such retailer may be required to pay or remit to the
5Department, as shown by such return, if the amount of the tax
6to be deducted was previously remitted to the Department by
7such retailer. If the retailer has not previously remitted the
8amount of such tax to the Department, he is entitled to no
9deduction under this Act upon refunding such tax to the
10purchaser.
11    Any retailer filing a return under this Section shall also
12include (for the purpose of paying tax thereon) the total tax
13covered by such return upon the selling price of tangible
14personal property purchased by him at retail from a retailer,
15but as to which the tax imposed by this Act was not collected
16from the retailer filing such return, and such retailer shall
17remit the amount of such tax to the Department when filing such
18return.
19    If experience indicates such action to be practicable, the
20Department may prescribe and furnish a combination or joint
21return which will enable retailers, who are required to file
22returns hereunder and also under the Retailers' Occupation Tax
23Act, to furnish all the return information required by both
24Acts on the one form.
25    Where the retailer has more than one business registered
26with the Department under separate registration under this Act,

 

 

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1such retailer may not file each return that is due as a single
2return covering all such registered businesses, but shall file
3separate returns for each such registered business.
4    Beginning January 1, 1990, each month the Department shall
5pay into the State and Local Sales Tax Reform Fund, a special
6fund in the State Treasury which is hereby created, the net
7revenue realized for the preceding month from the 1% tax
8imposed under this Act.
9    Beginning January 1, 1990, each month the Department shall
10pay into the County and Mass Transit District Fund 4% of the
11net revenue realized for the preceding month from the 6.25%
12general rate on the selling price of tangible personal property
13which is purchased outside Illinois at retail from a retailer
14and which is titled or registered by an agency of this State's
15government.
16    Beginning January 1, 1990, each month the Department shall
17pay into the State and Local Sales Tax Reform Fund, a special
18fund in the State Treasury, 20% of the net revenue realized for
19the preceding month from the 6.25% general rate on the selling
20price of tangible personal property, other than (i) tangible
21personal property which is purchased outside Illinois at retail
22from a retailer and which is titled or registered by an agency
23of this State's government and (ii) aviation fuel sold on or
24after December 1, 2019. This exception for aviation fuel only
25applies for so long as the revenue use requirements of 49
26U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

 

 

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1    For aviation fuel sold on or after December 1, 2019, each
2month the Department shall pay into the State Aviation Program
3Fund 20% of the net revenue realized for the preceding month
4from the 6.25% general rate on the selling price of aviation
5fuel, less an amount estimated by the Department to be required
6for refunds of the 20% portion of the tax on aviation fuel
7under this Act, which amount shall be deposited into the
8Aviation Fuel Sales Tax Refund Fund. The Department shall only
9pay moneys into the State Aviation Program Fund and the
10Aviation Fuels Sales Tax Refund Fund under this Act for so long
11as the revenue use requirements of 49 U.S.C. 47107(b) and 49
12U.S.C. 47133 are binding on the State.
13    Beginning August 1, 2000, each month the Department shall
14pay into the State and Local Sales Tax Reform Fund 100% of the
15net revenue realized for the preceding month from the 1.25%
16rate on the selling price of motor fuel and gasohol. Beginning
17September 1, 2010, each month the Department shall pay into the
18State and Local Sales Tax Reform Fund 100% of the net revenue
19realized for the preceding month from the 1.25% rate on the
20selling price of sales tax holiday items.
21    Beginning January 1, 1990, each month the Department shall
22pay into the Local Government Tax Fund 16% of the net revenue
23realized for the preceding month from the 6.25% general rate on
24the selling price of tangible personal property which is
25purchased outside Illinois at retail from a retailer and which
26is titled or registered by an agency of this State's

 

 

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1government.
2    Beginning October 1, 2009, each month the Department shall
3pay into the Capital Projects Fund an amount that is equal to
4an amount estimated by the Department to represent 80% of the
5net revenue realized for the preceding month from the sale of
6candy, grooming and hygiene products, and soft drinks that had
7been taxed at a rate of 1% prior to September 1, 2009 but that
8are now taxed at 6.25%.
9    Beginning July 1, 2011, each month the Department shall pay
10into the Clean Air Act Permit Fund 80% of the net revenue
11realized for the preceding month from the 6.25% general rate on
12the selling price of sorbents used in Illinois in the process
13of sorbent injection as used to comply with the Environmental
14Protection Act or the federal Clean Air Act, but the total
15payment into the Clean Air Act Permit Fund under this Act and
16the Retailers' Occupation Tax Act shall not exceed $2,000,000
17in any fiscal year.
18    Beginning July 1, 2013, each month the Department shall pay
19into the Underground Storage Tank Fund from the proceeds
20collected under this Act, the Service Use Tax Act, the Service
21Occupation Tax Act, and the Retailers' Occupation Tax Act an
22amount equal to the average monthly deficit in the Underground
23Storage Tank Fund during the prior year, as certified annually
24by the Illinois Environmental Protection Agency, but the total
25payment into the Underground Storage Tank Fund under this Act,
26the Service Use Tax Act, the Service Occupation Tax Act, and

 

 

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1the Retailers' Occupation Tax Act shall not exceed $18,000,000
2in any State fiscal year. As used in this paragraph, the
3"average monthly deficit" shall be equal to the difference
4between the average monthly claims for payment by the fund and
5the average monthly revenues deposited into the fund, excluding
6payments made pursuant to this paragraph.
7    Beginning July 1, 2015, of the remainder of the moneys
8received by the Department under this Act, the Service Use Tax
9Act, the Service Occupation Tax Act, and the Retailers'
10Occupation Tax Act, each month the Department shall deposit
11$500,000 into the State Crime Laboratory Fund.
12    Of the remainder of the moneys received by the Department
13pursuant to this Act, (a) 1.75% thereof shall be paid into the
14Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
15and after July 1, 1989, 3.8% thereof shall be paid into the
16Build Illinois Fund; provided, however, that if in any fiscal
17year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
18may be, of the moneys received by the Department and required
19to be paid into the Build Illinois Fund pursuant to Section 3
20of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
21Act, Section 9 of the Service Use Tax Act, and Section 9 of the
22Service Occupation Tax Act, such Acts being hereinafter called
23the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
24may be, of moneys being hereinafter called the "Tax Act
25Amount", and (2) the amount transferred to the Build Illinois
26Fund from the State and Local Sales Tax Reform Fund shall be

 

 

HB2682- 27 -LRB101 09562 HLH 54660 b

1less than the Annual Specified Amount (as defined in Section 3
2of the Retailers' Occupation Tax Act), an amount equal to the
3difference shall be immediately paid into the Build Illinois
4Fund from other moneys received by the Department pursuant to
5the Tax Acts; and further provided, that if on the last
6business day of any month the sum of (1) the Tax Act Amount
7required to be deposited into the Build Illinois Bond Account
8in the Build Illinois Fund during such month and (2) the amount
9transferred during such month to the Build Illinois Fund from
10the State and Local Sales Tax Reform Fund shall have been less
11than 1/12 of the Annual Specified Amount, an amount equal to
12the difference shall be immediately paid into the Build
13Illinois Fund from other moneys received by the Department
14pursuant to the Tax Acts; and, further provided, that in no
15event shall the payments required under the preceding proviso
16result in aggregate payments into the Build Illinois Fund
17pursuant to this clause (b) for any fiscal year in excess of
18the greater of (i) the Tax Act Amount or (ii) the Annual
19Specified Amount for such fiscal year; and, further provided,
20that the amounts payable into the Build Illinois Fund under
21this clause (b) shall be payable only until such time as the
22aggregate amount on deposit under each trust indenture securing
23Bonds issued and outstanding pursuant to the Build Illinois
24Bond Act is sufficient, taking into account any future
25investment income, to fully provide, in accordance with such
26indenture, for the defeasance of or the payment of the

 

 

HB2682- 28 -LRB101 09562 HLH 54660 b

1principal of, premium, if any, and interest on the Bonds
2secured by such indenture and on any Bonds expected to be
3issued thereafter and all fees and costs payable with respect
4thereto, all as certified by the Director of the Bureau of the
5Budget (now Governor's Office of Management and Budget). If on
6the last business day of any month in which Bonds are
7outstanding pursuant to the Build Illinois Bond Act, the
8aggregate of the moneys deposited in the Build Illinois Bond
9Account in the Build Illinois Fund in such month shall be less
10than the amount required to be transferred in such month from
11the Build Illinois Bond Account to the Build Illinois Bond
12Retirement and Interest Fund pursuant to Section 13 of the
13Build Illinois Bond Act, an amount equal to such deficiency
14shall be immediately paid from other moneys received by the
15Department pursuant to the Tax Acts to the Build Illinois Fund;
16provided, however, that any amounts paid to the Build Illinois
17Fund in any fiscal year pursuant to this sentence shall be
18deemed to constitute payments pursuant to clause (b) of the
19preceding sentence and shall reduce the amount otherwise
20payable for such fiscal year pursuant to clause (b) of the
21preceding sentence. The moneys received by the Department
22pursuant to this Act and required to be deposited into the
23Build Illinois Fund are subject to the pledge, claim and charge
24set forth in Section 12 of the Build Illinois Bond Act.
25    Subject to payment of amounts into the Build Illinois Fund
26as provided in the preceding paragraph or in any amendment

 

 

HB2682- 29 -LRB101 09562 HLH 54660 b

1thereto hereafter enacted, the following specified monthly
2installment of the amount requested in the certificate of the
3Chairman of the Metropolitan Pier and Exposition Authority
4provided under Section 8.25f of the State Finance Act, but not
5in excess of the sums designated as "Total Deposit", shall be
6deposited in the aggregate from collections under Section 9 of
7the Use Tax Act, Section 9 of the Service Use Tax Act, Section
89 of the Service Occupation Tax Act, and Section 3 of the
9Retailers' Occupation Tax Act into the McCormick Place
10Expansion Project Fund in the specified fiscal years.
11Fiscal YearTotal Deposit
121993         $0
131994 53,000,000
141995 58,000,000
151996 61,000,000
161997 64,000,000
171998 68,000,000
181999 71,000,000
192000 75,000,000
202001 80,000,000
212002 93,000,000
222003 99,000,000
232004103,000,000
242005108,000,000
252006113,000,000
262007119,000,000

 

 

HB2682- 30 -LRB101 09562 HLH 54660 b

12008126,000,000
22009132,000,000
32010139,000,000
42011146,000,000
52012153,000,000
62013161,000,000
72014170,000,000
82015179,000,000
92016189,000,000
102017199,000,000
112018210,000,000
122019221,000,000
132020233,000,000
142021246,000,000
152022260,000,000
162023275,000,000
172024 275,000,000
182025 275,000,000
192026 279,000,000
202027 292,000,000
212028 307,000,000
222029 322,000,000
232030 338,000,000
242031 350,000,000
252032 350,000,000
26and

 

 

HB2682- 31 -LRB101 09562 HLH 54660 b

1each fiscal year
2thereafter that bonds
3are outstanding under
4Section 13.2 of the
5Metropolitan Pier and
6Exposition Authority Act,
7but not after fiscal year 2060.
8    Beginning July 20, 1993 and in each month of each fiscal
9year thereafter, one-eighth of the amount requested in the
10certificate of the Chairman of the Metropolitan Pier and
11Exposition Authority for that fiscal year, less the amount
12deposited into the McCormick Place Expansion Project Fund by
13the State Treasurer in the respective month under subsection
14(g) of Section 13 of the Metropolitan Pier and Exposition
15Authority Act, plus cumulative deficiencies in the deposits
16required under this Section for previous months and years,
17shall be deposited into the McCormick Place Expansion Project
18Fund, until the full amount requested for the fiscal year, but
19not in excess of the amount specified above as "Total Deposit",
20has been deposited.
21    Subject to payment of amounts into the Capital Projects
22Fund, the Clean Air Act (CAA) Permit Fund, the Build Illinois
23Fund, and the McCormick Place Expansion Project Fund pursuant
24to the preceding paragraphs or in any amendments thereto
25hereafter enacted, the Department shall each month deposit into
26the Aviation Fuel Sales Tax Refund Fund an amount estimated by

 

 

HB2682- 32 -LRB101 09562 HLH 54660 b

1the Department to be required for refunds of the 80% portion of
2the tax on aviation fuel under this Act.
3    Subject to payment of amounts into the Build Illinois Fund
4and the McCormick Place Expansion Project Fund pursuant to the
5preceding paragraphs or in any amendments thereto hereafter
6enacted, beginning July 1, 1993 and ending on September 30,
72013, the Department shall each month pay into the Illinois Tax
8Increment Fund 0.27% of 80% of the net revenue realized for the
9preceding month from the 6.25% general rate on the selling
10price of tangible personal property.
11    Subject to payment of amounts into the Build Illinois Fund
12and the McCormick Place Expansion Project Fund pursuant to the
13preceding paragraphs or in any amendments thereto hereafter
14enacted, beginning with the receipt of the first report of
15taxes paid by an eligible business and continuing for a 25-year
16period, the Department shall each month pay into the Energy
17Infrastructure Fund 80% of the net revenue realized from the
186.25% general rate on the selling price of Illinois-mined coal
19that was sold to an eligible business. For purposes of this
20paragraph, the term "eligible business" means a new electric
21generating facility certified pursuant to Section 605-332 of
22the Department of Commerce and Economic Opportunity Law of the
23Civil Administrative Code of Illinois.
24    Subject to payment of amounts into the Build Illinois Fund,
25the McCormick Place Expansion Project Fund, the Illinois Tax
26Increment Fund, and the Energy Infrastructure Fund pursuant to

 

 

HB2682- 33 -LRB101 09562 HLH 54660 b

1the preceding paragraphs or in any amendments to this Section
2hereafter enacted, beginning on the first day of the first
3calendar month to occur on or after August 26, 2014 (the
4effective date of Public Act 98-1098), each month, from the
5collections made under Section 9 of the Use Tax Act, Section 9
6of the Service Use Tax Act, Section 9 of the Service Occupation
7Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
8the Department shall pay into the Tax Compliance and
9Administration Fund, to be used, subject to appropriation, to
10fund additional auditors and compliance personnel at the
11Department of Revenue, an amount equal to 1/12 of 5% of 80% of
12the cash receipts collected during the preceding fiscal year by
13the Audit Bureau of the Department under the Use Tax Act, the
14Service Use Tax Act, the Service Occupation Tax Act, the
15Retailers' Occupation Tax Act, and associated local occupation
16and use taxes administered by the Department (except the amount
17collected on aviation fuel sold on or after December 1, 2019).
18    Subject to payments of amounts into the Build Illinois
19Fund, the McCormick Place Expansion Project Fund, the Illinois
20Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
21Compliance and Administration Fund as provided in this Section,
22beginning on July 1, 2018 the Department shall pay each month
23into the Downstate Public Transportation Fund the moneys
24required to be so paid under Section 2-3 of the Downstate
25Public Transportation Act.
26    Of the remainder of the moneys received by the Department

 

 

HB2682- 34 -LRB101 09562 HLH 54660 b

1pursuant to this Act, 75% thereof shall be paid into the State
2Treasury and 25% shall be reserved in a special account and
3used only for the transfer to the Common School Fund as part of
4the monthly transfer from the General Revenue Fund in
5accordance with Section 8a of the State Finance Act.
6    As soon as possible after the first day of each month, upon
7certification of the Department of Revenue, the Comptroller
8shall order transferred and the Treasurer shall transfer from
9the General Revenue Fund to the Motor Fuel Tax Fund an amount
10equal to 1.7% of 80% of the net revenue realized under this Act
11for the second preceding month. Beginning April 1, 2000, this
12transfer is no longer required and shall not be made.
13    Net revenue realized for a month shall be the revenue
14collected by the State pursuant to this Act, less the amount
15paid out during that month as refunds to taxpayers for
16overpayment of liability.
17    For greater simplicity of administration, manufacturers,
18importers and wholesalers whose products are sold at retail in
19Illinois by numerous retailers, and who wish to do so, may
20assume the responsibility for accounting and paying to the
21Department all tax accruing under this Act with respect to such
22sales, if the retailers who are affected do not make written
23objection to the Department to this arrangement.
24(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
2599-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.
267-1-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19.)
 

 

 

HB2682- 35 -LRB101 09562 HLH 54660 b

1    (35 ILCS 105/19)  (from Ch. 120, par. 439.19)
2    Sec. 19. If it shall appear that an amount of tax or
3penalty or interest has been paid in error hereunder to the
4Department by a purchaser, as distinguished from the retailer,
5whether such amount be paid through a mistake of fact or an
6error of law, such purchaser may file a claim for credit or
7refund with the Department in accordance with Sections 6, 6a,
86b, 6c, and 6d of the Retailers' Occupation Tax Act. If it
9shall appear that an amount of tax or penalty or interest has
10been paid in error to the Department hereunder by a retailer
11who is required or authorized to collect and remit the use tax,
12whether such amount be paid through a mistake of fact or an
13error of law, such retailer may file a claim for credit or
14refund with the Department in accordance with Sections 6, 6a,
156b, 6c, and 6d of the Retailers' Occupation Tax Act, provided
16that no credit or refund shall be allowed for any amount paid
17by any such retailer unless it shall appear that he bore the
18burden of such amount and did not shift the burden thereof to
19anyone else (as in the case of a duplicated tax payment which
20the retailer made to the Department and did not collect from
21anyone else), or unless it shall appear that he or she or his
22or her legal representative has unconditionally repaid such
23amount to his vendee (1) who bore the burden thereof and has
24not shifted such burden directly or indirectly in any manner
25whatsoever; (2) who, if he has shifted such burden, has repaid

 

 

HB2682- 36 -LRB101 09562 HLH 54660 b

1unconditionally such amount to his or her own vendee, and (3)
2who is not entitled to receive any reimbursement therefor from
3any other source than from his vendor, nor to be relieved of
4such burden in any other manner whatsoever. If it shall appear
5that an amount of tax has been paid in error hereunder by the
6purchaser to a retailer, who retained such tax as reimbursement
7for his or her tax liability on the same sale under the
8Retailers' Occupation Tax Act, and who remitted the amount
9involved to the Department under the Retailers' Occupation Tax
10Act, whether such amount be paid through a mistake of fact or
11an error of law, the procedure for recovering such tax shall be
12that prescribed in Sections 6, 6a, 6b and 6c of the Retailers'
13Occupation Tax Act.
14    Any credit or refund that is allowed under this Section
15shall bear interest at the rate and in the manner specified in
16the Uniform Penalty and Interest Act.
17    Any claim filed hereunder shall be filed upon a form
18prescribed and furnished by the Department. The claim shall be
19signed by the claimant (or by the claimant's legal
20representative if the claimant shall have died or become a
21person under legal disability), or by a duly authorized agent
22of the claimant or his or her legal representative.
23    A claim for credit or refund shall be considered to have
24been filed with the Department on the date upon which it is
25received by the Department. Upon receipt of any claim for
26credit or refund filed under this Act, any officer or employee

 

 

HB2682- 37 -LRB101 09562 HLH 54660 b

1of the Department, authorized in writing by the Director of
2Revenue to acknowledge receipt of such claims on behalf of the
3Department, shall execute on behalf of the Department, and
4shall deliver or mail to the claimant or his duly authorized
5agent, a written receipt, acknowledging that the claim has been
6filed with the Department, describing the claim in sufficient
7detail to identify it and stating the date upon which the claim
8was received by the Department. Such written receipt shall be
9prima facie evidence that the Department received the claim
10described in such receipt and shall be prima facie evidence of
11the date when such claim was received by the Department. In the
12absence of such a written receipt, the records of the
13Department as to when the claim was received by the Department,
14or as to whether or not the claim was received at all by the
15Department, shall be deemed to be prima facie correct upon
16these questions in the event of any dispute between the
17claimant (or his or her legal representative) and the
18Department concerning these questions.
19    In case the Department determines that the claimant is
20entitled to a refund, such refund shall be made only from the
21Aviation Fuel Sales Tax Refund Fund or from such appropriation
22as may be available for that purpose, as appropriate. If it
23appears unlikely that the amount available appropriated would
24permit everyone having a claim allowed during the period
25covered by such appropriation or from the Aviation Fuel Sales
26Tax Refund Fund, as appropriate, to elect to receive a cash

 

 

HB2682- 38 -LRB101 09562 HLH 54660 b

1refund, the Department, by rule or regulation, shall provide
2for the payment of refunds in hardship cases and shall define
3what types of cases qualify as hardship cases.
4    If a retailer who has failed to pay use tax on gross
5receipts from retail sales is required by the Department to pay
6such tax, such retailer, without filing any formal claim with
7the Department, shall be allowed to take credit against such
8use tax liability to the extent, if any, to which such retailer
9has paid an amount equivalent to retailers' occupation tax or
10has paid use tax in error to his or her vendor or vendors of the
11same tangible personal property which such retailer bought for
12resale and did not first use before selling it, and no penalty
13or interest shall be charged to such retailer on the amount of
14such credit. However, when such credit is allowed to the
15retailer by the Department, the vendor is precluded from
16refunding any of that tax to the retailer and filing a claim
17for credit or refund with respect thereto with the Department.
18The provisions of this amendatory Act shall be applied
19retroactively, regardless of the date of the transaction.
20(Source: P.A. 99-217, eff. 7-31-15.)
 
21    Section 15. The Service Use Tax Act is amended by changing
22Sections 9 and 17 as follows:
 
23    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
24    Sec. 9. Each serviceman required or authorized to collect

 

 

HB2682- 39 -LRB101 09562 HLH 54660 b

1the tax herein imposed shall pay to the Department the amount
2of such tax (except as otherwise provided) at the time when he
3is required to file his return for the period during which such
4tax was collected, less a discount of 2.1% prior to January 1,
51990 and 1.75% on and after January 1, 1990, or $5 per calendar
6year, whichever is greater, which is allowed to reimburse the
7serviceman for expenses incurred in collecting the tax, keeping
8records, preparing and filing returns, remitting the tax and
9supplying data to the Department on request. The discount under
10this Section is not allowed for taxes paid on aviation fuel
11that are deposited into the State Aviation Program Fund under
12this Act. The discount allowed under this Section is allowed
13only for returns that are filed in the manner required by this
14Act. The Department may disallow the discount for servicemen
15whose certificate of registration is revoked at the time the
16return is filed, but only if the Department's decision to
17revoke the certificate of registration has become final. A
18serviceman need not remit that part of any tax collected by him
19to the extent that he is required to pay and does pay the tax
20imposed by the Service Occupation Tax Act with respect to his
21sale of service involving the incidental transfer by him of the
22same property.
23    Except as provided hereinafter in this Section, on or
24before the twentieth day of each calendar month, such
25serviceman shall file a return for the preceding calendar month
26in accordance with reasonable Rules and Regulations to be

 

 

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1promulgated by the Department. Such return shall be filed on a
2form prescribed by the Department and shall contain such
3information as the Department may reasonably require. On and
4after January 1, 2018, with respect to servicemen whose annual
5gross receipts average $20,000 or more, all returns required to
6be filed pursuant to this Act shall be filed electronically.
7Servicemen who demonstrate that they do not have access to the
8Internet or demonstrate hardship in filing electronically may
9petition the Department to waive the electronic filing
10requirement.
11    The Department may require returns to be filed on a
12quarterly basis. If so required, a return for each calendar
13quarter shall be filed on or before the twentieth day of the
14calendar month following the end of such calendar quarter. The
15taxpayer shall also file a return with the Department for each
16of the first two months of each calendar quarter, on or before
17the twentieth day of the following calendar month, stating:
18        1. The name of the seller;
19        2. The address of the principal place of business from
20    which he engages in business as a serviceman in this State;
21        3. The total amount of taxable receipts received by him
22    during the preceding calendar month, including receipts
23    from charge and time sales, but less all deductions allowed
24    by law;
25        4. The amount of credit provided in Section 2d of this
26    Act;

 

 

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1        5. The amount of tax due;
2        5-5. The signature of the taxpayer; and
3        6. Such other reasonable information as the Department
4    may require.
5    Beginning on January 1, 2020, each serviceman required or
6authorized to collect the tax imposed by this Act on aviation
7fuel transferred as an incident of a sale of service in this
8State during the preceding calendar month shall, instead of
9reporting and paying tax on aviation fuel as otherwise required
10by this Section, report and pay the tax by filing an aviation
11fuel tax return with the Department on or before the twentieth
12day of each calendar month. The requirements related to the
13return shall be as otherwise provided in this Section.
14Notwithstanding any other provisions of this Act to the
15contrary, servicemen collecting tax on aviation fuel shall file
16all aviation fuel tax returns and shall make all aviation fuel
17tax payments by electronic means in the manner and form
18required by the Department. For purposes of this paragraph,
19"aviation fuel" means a product that is intended for use or
20offered for sale as fuel for an aircraft.
21    If a taxpayer fails to sign a return within 30 days after
22the proper notice and demand for signature by the Department,
23the return shall be considered valid and any amount shown to be
24due on the return shall be deemed assessed.
25    Beginning October 1, 1993, a taxpayer who has an average
26monthly tax liability of $150,000 or more shall make all

 

 

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1payments required by rules of the Department by electronic
2funds transfer. Beginning October 1, 1994, a taxpayer who has
3an average monthly tax liability of $100,000 or more shall make
4all payments required by rules of the Department by electronic
5funds transfer. Beginning October 1, 1995, a taxpayer who has
6an average monthly tax liability of $50,000 or more shall make
7all payments required by rules of the Department by electronic
8funds transfer. Beginning October 1, 2000, a taxpayer who has
9an annual tax liability of $200,000 or more shall make all
10payments required by rules of the Department by electronic
11funds transfer. The term "annual tax liability" shall be the
12sum of the taxpayer's liabilities under this Act, and under all
13other State and local occupation and use tax laws administered
14by the Department, for the immediately preceding calendar year.
15The term "average monthly tax liability" means the sum of the
16taxpayer's liabilities under this Act, and under all other
17State and local occupation and use tax laws administered by the
18Department, for the immediately preceding calendar year
19divided by 12. Beginning on October 1, 2002, a taxpayer who has
20a tax liability in the amount set forth in subsection (b) of
21Section 2505-210 of the Department of Revenue Law shall make
22all payments required by rules of the Department by electronic
23funds transfer.
24    Before August 1 of each year beginning in 1993, the
25Department shall notify all taxpayers required to make payments
26by electronic funds transfer. All taxpayers required to make

 

 

HB2682- 43 -LRB101 09562 HLH 54660 b

1payments by electronic funds transfer shall make those payments
2for a minimum of one year beginning on October 1.
3    Any taxpayer not required to make payments by electronic
4funds transfer may make payments by electronic funds transfer
5with the permission of the Department.
6    All taxpayers required to make payment by electronic funds
7transfer and any taxpayers authorized to voluntarily make
8payments by electronic funds transfer shall make those payments
9in the manner authorized by the Department.
10    The Department shall adopt such rules as are necessary to
11effectuate a program of electronic funds transfer and the
12requirements of this Section.
13    If the serviceman is otherwise required to file a monthly
14return and if the serviceman's average monthly tax liability to
15the Department does not exceed $200, the Department may
16authorize his returns to be filed on a quarter annual basis,
17with the return for January, February and March of a given year
18being due by April 20 of such year; with the return for April,
19May and June of a given year being due by July 20 of such year;
20with the return for July, August and September of a given year
21being due by October 20 of such year, and with the return for
22October, November and December of a given year being due by
23January 20 of the following year.
24    If the serviceman is otherwise required to file a monthly
25or quarterly return and if the serviceman's average monthly tax
26liability to the Department does not exceed $50, the Department

 

 

HB2682- 44 -LRB101 09562 HLH 54660 b

1may authorize his returns to be filed on an annual basis, with
2the return for a given year being due by January 20 of the
3following year.
4    Such quarter annual and annual returns, as to form and
5substance, shall be subject to the same requirements as monthly
6returns.
7    Notwithstanding any other provision in this Act concerning
8the time within which a serviceman may file his return, in the
9case of any serviceman who ceases to engage in a kind of
10business which makes him responsible for filing returns under
11this Act, such serviceman shall file a final return under this
12Act with the Department not more than 1 month after
13discontinuing such business.
14    Where a serviceman collects the tax with respect to the
15selling price of property which he sells and the purchaser
16thereafter returns such property and the serviceman refunds the
17selling price thereof to the purchaser, such serviceman shall
18also refund, to the purchaser, the tax so collected from the
19purchaser. When filing his return for the period in which he
20refunds such tax to the purchaser, the serviceman may deduct
21the amount of the tax so refunded by him to the purchaser from
22any other Service Use Tax, Service Occupation Tax, retailers'
23occupation tax or use tax which such serviceman may be required
24to pay or remit to the Department, as shown by such return,
25provided that the amount of the tax to be deducted shall
26previously have been remitted to the Department by such

 

 

HB2682- 45 -LRB101 09562 HLH 54660 b

1serviceman. If the serviceman shall not previously have
2remitted the amount of such tax to the Department, he shall be
3entitled to no deduction hereunder upon refunding such tax to
4the purchaser.
5    Any serviceman filing a return hereunder shall also include
6the total tax upon the selling price of tangible personal
7property purchased for use by him as an incident to a sale of
8service, and such serviceman shall remit the amount of such tax
9to the Department when filing such return.
10    If experience indicates such action to be practicable, the
11Department may prescribe and furnish a combination or joint
12return which will enable servicemen, who are required to file
13returns hereunder and also under the Service Occupation Tax
14Act, to furnish all the return information required by both
15Acts on the one form.
16    Where the serviceman has more than one business registered
17with the Department under separate registration hereunder,
18such serviceman shall not file each return that is due as a
19single return covering all such registered businesses, but
20shall file separate returns for each such registered business.
21    Beginning January 1, 1990, each month the Department shall
22pay into the State and Local Tax Reform Fund, a special fund in
23the State Treasury, the net revenue realized for the preceding
24month from the 1% tax imposed under this Act.
25    Beginning January 1, 1990, each month the Department shall
26pay into the State and Local Sales Tax Reform Fund 20% of the

 

 

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1net revenue realized for the preceding month from the 6.25%
2general rate on transfers of tangible personal property, other
3than (i) tangible personal property which is purchased outside
4Illinois at retail from a retailer and which is titled or
5registered by an agency of this State's government and (ii)
6aviation fuel sold on or after December 1, 2019. This exception
7for aviation fuel only applies for so long as the revenue use
8requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
9binding on the State.
10    For aviation fuel sold on or after December 1, 2019, each
11month the Department shall pay into the State Aviation Program
12Fund 20% of the net revenue realized for the preceding month
13from the 6.25% general rate on the selling price of aviation
14fuel, less an amount estimated by the Department to be required
15for refunds of the 20% portion of the tax on aviation fuel
16under this Act, which amount shall be deposited into the
17Aviation fuel Sales Tax Refund Fund. The Department shall only
18pay moneys into the State Aviation Program Fund and the
19Aviation Fuel Sales Tax Refund Fund under this Act for so long
20as the revenue use requirements of 49 U.S.C. 47107(b) and 49
21U.S.C. 47133 are binding on the State.
22    Beginning August 1, 2000, each month the Department shall
23pay into the State and Local Sales Tax Reform Fund 100% of the
24net revenue realized for the preceding month from the 1.25%
25rate on the selling price of motor fuel and gasohol.
26    Beginning October 1, 2009, each month the Department shall

 

 

HB2682- 47 -LRB101 09562 HLH 54660 b

1pay into the Capital Projects Fund an amount that is equal to
2an amount estimated by the Department to represent 80% of the
3net revenue realized for the preceding month from the sale of
4candy, grooming and hygiene products, and soft drinks that had
5been taxed at a rate of 1% prior to September 1, 2009 but that
6are now taxed at 6.25%.
7    Beginning July 1, 2013, each month the Department shall pay
8into the Underground Storage Tank Fund from the proceeds
9collected under this Act, the Use Tax Act, the Service
10Occupation Tax Act, and the Retailers' Occupation Tax Act an
11amount equal to the average monthly deficit in the Underground
12Storage Tank Fund during the prior year, as certified annually
13by the Illinois Environmental Protection Agency, but the total
14payment into the Underground Storage Tank Fund under this Act,
15the Use Tax Act, the Service Occupation Tax Act, and the
16Retailers' Occupation Tax Act shall not exceed $18,000,000 in
17any State fiscal year. As used in this paragraph, the "average
18monthly deficit" shall be equal to the difference between the
19average monthly claims for payment by the fund and the average
20monthly revenues deposited into the fund, excluding payments
21made pursuant to this paragraph.
22    Beginning July 1, 2015, of the remainder of the moneys
23received by the Department under the Use Tax Act, this Act, the
24Service Occupation Tax Act, and the Retailers' Occupation Tax
25Act, each month the Department shall deposit $500,000 into the
26State Crime Laboratory Fund.

 

 

HB2682- 48 -LRB101 09562 HLH 54660 b

1    Of the remainder of the moneys received by the Department
2pursuant to this Act, (a) 1.75% thereof shall be paid into the
3Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
4and after July 1, 1989, 3.8% thereof shall be paid into the
5Build Illinois Fund; provided, however, that if in any fiscal
6year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
7may be, of the moneys received by the Department and required
8to be paid into the Build Illinois Fund pursuant to Section 3
9of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
10Act, Section 9 of the Service Use Tax Act, and Section 9 of the
11Service Occupation Tax Act, such Acts being hereinafter called
12the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
13may be, of moneys being hereinafter called the "Tax Act
14Amount", and (2) the amount transferred to the Build Illinois
15Fund from the State and Local Sales Tax Reform Fund shall be
16less than the Annual Specified Amount (as defined in Section 3
17of the Retailers' Occupation Tax Act), an amount equal to the
18difference shall be immediately paid into the Build Illinois
19Fund from other moneys received by the Department pursuant to
20the Tax Acts; and further provided, that if on the last
21business day of any month the sum of (1) the Tax Act Amount
22required to be deposited into the Build Illinois Bond Account
23in the Build Illinois Fund during such month and (2) the amount
24transferred during such month to the Build Illinois Fund from
25the State and Local Sales Tax Reform Fund shall have been less
26than 1/12 of the Annual Specified Amount, an amount equal to

 

 

HB2682- 49 -LRB101 09562 HLH 54660 b

1the difference shall be immediately paid into the Build
2Illinois Fund from other moneys received by the Department
3pursuant to the Tax Acts; and, further provided, that in no
4event shall the payments required under the preceding proviso
5result in aggregate payments into the Build Illinois Fund
6pursuant to this clause (b) for any fiscal year in excess of
7the greater of (i) the Tax Act Amount or (ii) the Annual
8Specified Amount for such fiscal year; and, further provided,
9that the amounts payable into the Build Illinois Fund under
10this clause (b) shall be payable only until such time as the
11aggregate amount on deposit under each trust indenture securing
12Bonds issued and outstanding pursuant to the Build Illinois
13Bond Act is sufficient, taking into account any future
14investment income, to fully provide, in accordance with such
15indenture, for the defeasance of or the payment of the
16principal of, premium, if any, and interest on the Bonds
17secured by such indenture and on any Bonds expected to be
18issued thereafter and all fees and costs payable with respect
19thereto, all as certified by the Director of the Bureau of the
20Budget (now Governor's Office of Management and Budget). If on
21the last business day of any month in which Bonds are
22outstanding pursuant to the Build Illinois Bond Act, the
23aggregate of the moneys deposited in the Build Illinois Bond
24Account in the Build Illinois Fund in such month shall be less
25than the amount required to be transferred in such month from
26the Build Illinois Bond Account to the Build Illinois Bond

 

 

HB2682- 50 -LRB101 09562 HLH 54660 b

1Retirement and Interest Fund pursuant to Section 13 of the
2Build Illinois Bond Act, an amount equal to such deficiency
3shall be immediately paid from other moneys received by the
4Department pursuant to the Tax Acts to the Build Illinois Fund;
5provided, however, that any amounts paid to the Build Illinois
6Fund in any fiscal year pursuant to this sentence shall be
7deemed to constitute payments pursuant to clause (b) of the
8preceding sentence and shall reduce the amount otherwise
9payable for such fiscal year pursuant to clause (b) of the
10preceding sentence. The moneys received by the Department
11pursuant to this Act and required to be deposited into the
12Build Illinois Fund are subject to the pledge, claim and charge
13set forth in Section 12 of the Build Illinois Bond Act.
14    Subject to payment of amounts into the Build Illinois Fund
15as provided in the preceding paragraph or in any amendment
16thereto hereafter enacted, the following specified monthly
17installment of the amount requested in the certificate of the
18Chairman of the Metropolitan Pier and Exposition Authority
19provided under Section 8.25f of the State Finance Act, but not
20in excess of the sums designated as "Total Deposit", shall be
21deposited in the aggregate from collections under Section 9 of
22the Use Tax Act, Section 9 of the Service Use Tax Act, Section
239 of the Service Occupation Tax Act, and Section 3 of the
24Retailers' Occupation Tax Act into the McCormick Place
25Expansion Project Fund in the specified fiscal years.

 

 

HB2682- 51 -LRB101 09562 HLH 54660 b

1Fiscal YearTotal Deposit
21993         $0
31994 53,000,000
41995 58,000,000
51996 61,000,000
61997 64,000,000
71998 68,000,000
81999 71,000,000
92000 75,000,000
102001 80,000,000
112002 93,000,000
122003 99,000,000
132004103,000,000
142005108,000,000
152006113,000,000
162007119,000,000
172008126,000,000
182009132,000,000
192010139,000,000
202011146,000,000
212012153,000,000
222013161,000,000
232014170,000,000
242015179,000,000
252016189,000,000

 

 

HB2682- 52 -LRB101 09562 HLH 54660 b

12017199,000,000
22018210,000,000
32019221,000,000
42020233,000,000
52021246,000,000
62022260,000,000
72023275,000,000
82024 275,000,000
92025 275,000,000
102026 279,000,000
112027 292,000,000
122028 307,000,000
132029 322,000,000
142030 338,000,000
152031 350,000,000
162032 350,000,000
17and
18each fiscal year
19thereafter that bonds
20are outstanding under
21Section 13.2 of the
22Metropolitan Pier and
23Exposition Authority Act,
24but not after fiscal year 2060.
25    Beginning July 20, 1993 and in each month of each fiscal
26year thereafter, one-eighth of the amount requested in the

 

 

HB2682- 53 -LRB101 09562 HLH 54660 b

1certificate of the Chairman of the Metropolitan Pier and
2Exposition Authority for that fiscal year, less the amount
3deposited into the McCormick Place Expansion Project Fund by
4the State Treasurer in the respective month under subsection
5(g) of Section 13 of the Metropolitan Pier and Exposition
6Authority Act, plus cumulative deficiencies in the deposits
7required under this Section for previous months and years,
8shall be deposited into the McCormick Place Expansion Project
9Fund, until the full amount requested for the fiscal year, but
10not in excess of the amount specified above as "Total Deposit",
11has been deposited.
12    Subject to payment of amounts into the Capital Projects
13Fund, the Clean Air Act (CAA) Permit Fund, the Build Illinois
14Fund, and the McCormick Place Expansion Project Fund pursuant
15to the preceding paragraphs or in any amendments thereto
16hereafter enacted, the Department shall each month deposit into
17the Aviation Fuel Sales Tax Refund Fund an amount estimated by
18the Department to be required for refunds of the 80% portion of
19the tax on aviation fuel under this Act.
20    Subject to payment of amounts into the Build Illinois Fund
21and the McCormick Place Expansion Project Fund pursuant to the
22preceding paragraphs or in any amendments thereto hereafter
23enacted, beginning July 1, 1993 and ending on September 30,
242013, the Department shall each month pay into the Illinois Tax
25Increment Fund 0.27% of 80% of the net revenue realized for the
26preceding month from the 6.25% general rate on the selling

 

 

HB2682- 54 -LRB101 09562 HLH 54660 b

1price of tangible personal property.
2    Subject to payment of amounts into the Build Illinois Fund
3and the McCormick Place Expansion Project Fund pursuant to the
4preceding paragraphs or in any amendments thereto hereafter
5enacted, beginning with the receipt of the first report of
6taxes paid by an eligible business and continuing for a 25-year
7period, the Department shall each month pay into the Energy
8Infrastructure Fund 80% of the net revenue realized from the
96.25% general rate on the selling price of Illinois-mined coal
10that was sold to an eligible business. For purposes of this
11paragraph, the term "eligible business" means a new electric
12generating facility certified pursuant to Section 605-332 of
13the Department of Commerce and Economic Opportunity Law of the
14Civil Administrative Code of Illinois.
15    Subject to payment of amounts into the Build Illinois Fund,
16the McCormick Place Expansion Project Fund, the Illinois Tax
17Increment Fund, and the Energy Infrastructure Fund pursuant to
18the preceding paragraphs or in any amendments to this Section
19hereafter enacted, beginning on the first day of the first
20calendar month to occur on or after August 26, 2014 (the
21effective date of Public Act 98-1098), each month, from the
22collections made under Section 9 of the Use Tax Act, Section 9
23of the Service Use Tax Act, Section 9 of the Service Occupation
24Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
25the Department shall pay into the Tax Compliance and
26Administration Fund, to be used, subject to appropriation, to

 

 

HB2682- 55 -LRB101 09562 HLH 54660 b

1fund additional auditors and compliance personnel at the
2Department of Revenue, an amount equal to 1/12 of 5% of 80% of
3the cash receipts collected during the preceding fiscal year by
4the Audit Bureau of the Department under the Use Tax Act, the
5Service Use Tax Act, the Service Occupation Tax Act, the
6Retailers' Occupation Tax Act, and associated local occupation
7and use taxes administered by the Department (except the amount
8collected on aviation fuel sold on or after December 1, 2019).
9    Subject to payments of amounts into the Build Illinois
10Fund, the McCormick Place Expansion Project Fund, the Illinois
11Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
12Compliance and Administration Fund as provided in this Section,
13beginning on July 1, 2018 the Department shall pay each month
14into the Downstate Public Transportation Fund the moneys
15required to be so paid under Section 2-3 of the Downstate
16Public Transportation Act.
17    Of the remainder of the moneys received by the Department
18pursuant to this Act, 75% thereof shall be paid into the
19General Revenue Fund of the State Treasury and 25% shall be
20reserved in a special account and used only for the transfer to
21the Common School Fund as part of the monthly transfer from the
22General Revenue Fund in accordance with Section 8a of the State
23Finance Act.
24    As soon as possible after the first day of each month, upon
25certification of the Department of Revenue, the Comptroller
26shall order transferred and the Treasurer shall transfer from

 

 

HB2682- 56 -LRB101 09562 HLH 54660 b

1the General Revenue Fund to the Motor Fuel Tax Fund an amount
2equal to 1.7% of 80% of the net revenue realized under this Act
3for the second preceding month. Beginning April 1, 2000, this
4transfer is no longer required and shall not be made.
5    Net revenue realized for a month shall be the revenue
6collected by the State pursuant to this Act, less the amount
7paid out during that month as refunds to taxpayers for
8overpayment of liability.
9(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
10100-303, eff. 8-24-17; 100-363, eff. 7-1-18; 100-863, eff.
118-14-18; 100-1171, eff. 1-4-19.)
 
12    (35 ILCS 110/17)  (from Ch. 120, par. 439.47)
13    Sec. 17. If it shall appear that an amount of tax or
14penalty or interest has been paid in error hereunder to the
15Department by a purchaser, as distinguished from the
16serviceman, whether such amount be paid through a mistake of
17fact or an error of law, such purchaser may file a claim for
18credit or refund with the Department. If it shall appear that
19an amount of tax or penalty or interest has been paid in error
20to the Department hereunder by a serviceman who is required or
21authorized to collect and remit the Service Use Tax, whether
22such amount be paid through a mistake of fact or an error of
23law, such serviceman may file a claim for credit or refund with
24the Department, provided that no credit shall be allowed or
25refund made for any amount paid by any such serviceman unless

 

 

HB2682- 57 -LRB101 09562 HLH 54660 b

1it shall appear that he bore the burden of such amount and did
2not shift the burden thereof to anyone else (as in the case of
3a duplicated tax payment which the serviceman made to the
4Department and did not collect from anyone else), or unless it
5shall appear that he or his legal representative has
6unconditionally repaid such amount to his vendee (1) who bore
7the burden thereof and has not shifted such burden directly or
8indirectly in any manner whatsoever; (2) who, if he has shifted
9such burden, has repaid unconditionally such amount to his own
10vendee, and (3) who is not entitled to receive any
11reimbursement therefor from any other source than from his
12vendor, nor to be relieved of such burden in any other manner
13whatsoever. If it shall appear that an amount of tax has been
14paid in error hereunder by the purchaser to a serviceman, who
15retained such tax as reimbursement for his tax liability on the
16same sale of service under the Service Occupation Tax Act, and
17who paid such tax as required by the Service Occupation Tax
18Act, whether such amount be paid through a mistake of fact or
19an error of law, the procedure for recovering such tax shall be
20that prescribed in Sections 17, 18, 19 and 20 of the Service
21Occupation Tax Act.
22    Any credit or refund that is allowed under this Section
23shall bear interest at the rate and in the manner specified in
24the Uniform Penalty and Interest Act.
25    Any claim filed hereunder shall be filed upon a form
26prescribed and furnished by the Department. The claim shall be

 

 

HB2682- 58 -LRB101 09562 HLH 54660 b

1signed by the claimant (or by the claimant's legal
2representative if the claimant shall have died or become a
3person under legal disability), or by a duly authorized agent
4of the claimant or his or her legal representative.
5    A claim for credit or refund shall be considered to have
6been filed with the Department on the date upon which it is
7received by the Department. Upon receipt of any claim for
8credit or refund filed under this Act, any officer or employee
9of the Department, authorized in writing by the Director of
10Revenue to acknowledge receipt of such claims on behalf of the
11Department, shall execute on behalf of the Department, and
12shall deliver or mail to the claimant or his duly authorized
13agent, a written receipt, acknowledging that the claim has been
14filed with the Department, describing the claim in sufficient
15detail to identify it and stating the date upon which the claim
16was received by the Department. Such written receipt shall be
17prima facie evidence that the Department received the claim
18described in such receipt and shall be prima facie evidence of
19the date when such claim was received by the Department. In the
20absence of such a written receipt, the records of the
21Department as to when the claim was received by the Department,
22or as to whether or not the claim was received at all by the
23Department, shall be deemed to be prima facie correct upon
24these questions in the event of any dispute between the
25claimant (or his or her legal representative) and the
26Department concerning these questions.

 

 

HB2682- 59 -LRB101 09562 HLH 54660 b

1    In case the Department determines that the claimant is
2entitled to a refund, such refund shall be made only from the
3Aviation Fuel Sales Tax Refund Fund or from such appropriation
4as may be available for that purpose, as appropriate. If it
5appears unlikely that the amount available appropriated would
6permit everyone having a claim allowed during the period
7covered by such appropriation or from the Aviation Fuel Sales
8Tax Refund Fund, as appropriate, to elect to receive a cash
9refund, the Department, by rule or regulation, shall provide
10for the payment of refunds in hardship cases and shall define
11what types of cases qualify as hardship cases.
12(Source: P.A. 87-205.)
 
13    Section 20. The Service Occupation Tax Act is amended by
14changing Sections 9 and 17 as follows:
 
15    (35 ILCS 115/9)  (from Ch. 120, par. 439.109)
16    Sec. 9. Each serviceman required or authorized to collect
17the tax herein imposed shall pay to the Department the amount
18of such tax at the time when he is required to file his return
19for the period during which such tax was collectible, less a
20discount of 2.1% prior to January 1, 1990, and 1.75% on and
21after January 1, 1990, or $5 per calendar year, whichever is
22greater, which is allowed to reimburse the serviceman for
23expenses incurred in collecting the tax, keeping records,
24preparing and filing returns, remitting the tax and supplying

 

 

HB2682- 60 -LRB101 09562 HLH 54660 b

1data to the Department on request. The discount under this
2Section is not allowed for taxes paid on aviation fuel that are
3deposited into the State Aviation Program Fund under this Act.
4The discount allowed under this Section is allowed only for
5returns that are filed in the manner required by this Act. The
6Department may disallow the discount for servicemen whose
7certificate of registration is revoked at the time the return
8is filed, but only if the Department's decision to revoke the
9certificate of registration has become final.
10    Where such tangible personal property is sold under a
11conditional sales contract, or under any other form of sale
12wherein the payment of the principal sum, or a part thereof, is
13extended beyond the close of the period for which the return is
14filed, the serviceman, in collecting the tax may collect, for
15each tax return period, only the tax applicable to the part of
16the selling price actually received during such tax return
17period.
18    Except as provided hereinafter in this Section, on or
19before the twentieth day of each calendar month, such
20serviceman shall file a return for the preceding calendar month
21in accordance with reasonable rules and regulations to be
22promulgated by the Department of Revenue. Such return shall be
23filed on a form prescribed by the Department and shall contain
24such information as the Department may reasonably require. On
25and after January 1, 2018, with respect to servicemen whose
26annual gross receipts average $20,000 or more, all returns

 

 

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1required to be filed pursuant to this Act shall be filed
2electronically. Servicemen who demonstrate that they do not
3have access to the Internet or demonstrate hardship in filing
4electronically may petition the Department to waive the
5electronic filing requirement.
6    The Department may require returns to be filed on a
7quarterly basis. If so required, a return for each calendar
8quarter shall be filed on or before the twentieth day of the
9calendar month following the end of such calendar quarter. The
10taxpayer shall also file a return with the Department for each
11of the first two months of each calendar quarter, on or before
12the twentieth day of the following calendar month, stating:
13        1. The name of the seller;
14        2. The address of the principal place of business from
15    which he engages in business as a serviceman in this State;
16        3. The total amount of taxable receipts received by him
17    during the preceding calendar month, including receipts
18    from charge and time sales, but less all deductions allowed
19    by law;
20        4. The amount of credit provided in Section 2d of this
21    Act;
22        5. The amount of tax due;
23        5-5. The signature of the taxpayer; and
24        6. Such other reasonable information as the Department
25    may require.
26    Beginning on January 1, 2020, each serviceman required or

 

 

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1authorized to collect the tax herein imposed on aviation fuel
2acquired as an incident to the purchase of a service in this
3State during the preceding calendar month shall, instead of
4reporting and paying tax as otherwise required by this Section,
5file an aviation fuel tax return with the Department on or
6before the twentieth day of each calendar month. The
7requirements related to the return shall be as otherwise
8provided in this Section. Notwithstanding any other provisions
9of this Act to the contrary, servicemen transferring aviation
10fuel incident to sales of service shall file all aviation fuel
11tax returns and shall make all aviation fuel tax payments by
12electronic means in the manner and form required by the
13Department. For purposes of this paragraph, "aviation fuel"
14means a product that is intended for use or offered for sale as
15fuel for an aircraft.
16    If a taxpayer fails to sign a return within 30 days after
17the proper notice and demand for signature by the Department,
18the return shall be considered valid and any amount shown to be
19due on the return shall be deemed assessed.
20    Prior to October 1, 2003, and on and after September 1,
212004 a serviceman may accept a Manufacturer's Purchase Credit
22certification from a purchaser in satisfaction of Service Use
23Tax as provided in Section 3-70 of the Service Use Tax Act if
24the purchaser provides the appropriate documentation as
25required by Section 3-70 of the Service Use Tax Act. A
26Manufacturer's Purchase Credit certification, accepted prior

 

 

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1to October 1, 2003 or on or after September 1, 2004 by a
2serviceman as provided in Section 3-70 of the Service Use Tax
3Act, may be used by that serviceman to satisfy Service
4Occupation Tax liability in the amount claimed in the
5certification, not to exceed 6.25% of the receipts subject to
6tax from a qualifying purchase. A Manufacturer's Purchase
7Credit reported on any original or amended return filed under
8this Act after October 20, 2003 for reporting periods prior to
9September 1, 2004 shall be disallowed. Manufacturer's Purchase
10Credit reported on annual returns due on or after January 1,
112005 will be disallowed for periods prior to September 1, 2004.
12No Manufacturer's Purchase Credit may be used after September
1330, 2003 through August 31, 2004 to satisfy any tax liability
14imposed under this Act, including any audit liability.
15    If the serviceman's average monthly tax liability to the
16Department does not exceed $200, the Department may authorize
17his returns to be filed on a quarter annual basis, with the
18return for January, February and March of a given year being
19due by April 20 of such year; with the return for April, May
20and June of a given year being due by July 20 of such year; with
21the return for July, August and September of a given year being
22due by October 20 of such year, and with the return for
23October, November and December of a given year being due by
24January 20 of the following year.
25    If the serviceman's average monthly tax liability to the
26Department does not exceed $50, the Department may authorize

 

 

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1his returns to be filed on an annual basis, with the return for
2a given year being due by January 20 of the following year.
3    Such quarter annual and annual returns, as to form and
4substance, shall be subject to the same requirements as monthly
5returns.
6    Notwithstanding any other provision in this Act concerning
7the time within which a serviceman may file his return, in the
8case of any serviceman who ceases to engage in a kind of
9business which makes him responsible for filing returns under
10this Act, such serviceman shall file a final return under this
11Act with the Department not more than 1 month after
12discontinuing such business.
13    Beginning October 1, 1993, a taxpayer who has an average
14monthly tax liability of $150,000 or more shall make all
15payments required by rules of the Department by electronic
16funds transfer. Beginning October 1, 1994, a taxpayer who has
17an average monthly tax liability of $100,000 or more shall make
18all payments required by rules of the Department by electronic
19funds transfer. Beginning October 1, 1995, a taxpayer who has
20an average monthly tax liability of $50,000 or more shall make
21all payments required by rules of the Department by electronic
22funds transfer. Beginning October 1, 2000, a taxpayer who has
23an annual tax liability of $200,000 or more shall make all
24payments required by rules of the Department by electronic
25funds transfer. The term "annual tax liability" shall be the
26sum of the taxpayer's liabilities under this Act, and under all

 

 

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1other State and local occupation and use tax laws administered
2by the Department, for the immediately preceding calendar year.
3The term "average monthly tax liability" means the sum of the
4taxpayer's liabilities under this Act, and under all other
5State and local occupation and use tax laws administered by the
6Department, for the immediately preceding calendar year
7divided by 12. Beginning on October 1, 2002, a taxpayer who has
8a tax liability in the amount set forth in subsection (b) of
9Section 2505-210 of the Department of Revenue Law shall make
10all payments required by rules of the Department by electronic
11funds transfer.
12    Before August 1 of each year beginning in 1993, the
13Department shall notify all taxpayers required to make payments
14by electronic funds transfer. All taxpayers required to make
15payments by electronic funds transfer shall make those payments
16for a minimum of one year beginning on October 1.
17    Any taxpayer not required to make payments by electronic
18funds transfer may make payments by electronic funds transfer
19with the permission of the Department.
20    All taxpayers required to make payment by electronic funds
21transfer and any taxpayers authorized to voluntarily make
22payments by electronic funds transfer shall make those payments
23in the manner authorized by the Department.
24    The Department shall adopt such rules as are necessary to
25effectuate a program of electronic funds transfer and the
26requirements of this Section.

 

 

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1    Where a serviceman collects the tax with respect to the
2selling price of tangible personal property which he sells and
3the purchaser thereafter returns such tangible personal
4property and the serviceman refunds the selling price thereof
5to the purchaser, such serviceman shall also refund, to the
6purchaser, the tax so collected from the purchaser. When filing
7his return for the period in which he refunds such tax to the
8purchaser, the serviceman may deduct the amount of the tax so
9refunded by him to the purchaser from any other Service
10Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
11Use Tax which such serviceman may be required to pay or remit
12to the Department, as shown by such return, provided that the
13amount of the tax to be deducted shall previously have been
14remitted to the Department by such serviceman. If the
15serviceman shall not previously have remitted the amount of
16such tax to the Department, he shall be entitled to no
17deduction hereunder upon refunding such tax to the purchaser.
18    If experience indicates such action to be practicable, the
19Department may prescribe and furnish a combination or joint
20return which will enable servicemen, who are required to file
21returns hereunder and also under the Retailers' Occupation Tax
22Act, the Use Tax Act or the Service Use Tax Act, to furnish all
23the return information required by all said Acts on the one
24form.
25    Where the serviceman has more than one business registered
26with the Department under separate registrations hereunder,

 

 

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1such serviceman shall file separate returns for each registered
2business.
3    Beginning January 1, 1990, each month the Department shall
4pay into the Local Government Tax Fund the revenue realized for
5the preceding month from the 1% tax imposed under this Act.
6    Beginning January 1, 1990, each month the Department shall
7pay into the County and Mass Transit District Fund 4% of the
8revenue realized for the preceding month from the 6.25% general
9rate on sales of tangible personal property other than aviation
10fuel sold on or after December 1, 2019. This exception for
11aviation fuel only applies for so long as the revenue use
12requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
13binding on the State.
14    For aviation fuel sold on or after December 1, 2019, each
15month the Department shall pay into the State Aviation Program
16Fund 4% of the net revenue realized for the preceding month
17from the 6.25% general rate on the selling price of aviation
18fuel, less an amount estimated by the Department to be required
19for refunds of the 4% portion of the tax on aviation fuel under
20this Act, which amount shall be deposited into the Aviation
21Fuel Sales Tax Refund Fund. The Department shall only pay
22moneys into the State Aviation Program Fund and the Aviation
23Fuel Sales Tax Refund Fund under this Act for so long as the
24revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2547133 are binding on the State.
26    Beginning August 1, 2000, each month the Department shall

 

 

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1pay into the County and Mass Transit District Fund 20% of the
2net revenue realized for the preceding month from the 1.25%
3rate on the selling price of motor fuel and gasohol.
4    Beginning January 1, 1990, each month the Department shall
5pay into the Local Government Tax Fund 16% of the revenue
6realized for the preceding month from the 6.25% general rate on
7transfers of tangible personal property other than aviation
8fuel sold on or after December 1, 2019. This exception for
9aviation fuel only applies for so long as the revenue use
10requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
11binding on the State.
12    For aviation fuel sold on or after December 1, 2019, each
13month the Department shall pay into the State Aviation Program
14Fund 16% of the net revenue realized for the preceding month
15from the 6.25% general rate on the selling price of aviation
16fuel, less an amount estimated by the Department to be required
17for refunds of the 16% portion of the tax on aviation fuel
18under this Act, which amount shall be deposited into the
19Aviation Fuel Sales Tax Refund Fund. The Department shall only
20pay moneys into the State Aviation Program Fund and the
21Aviation Fuel Sales Tax Refund Fund under this Act for so long
22as the revenue use requirements of 49 U.S.C. 47107(b) and 49
23U.S.C. 47133 are binding on the State.
24    Beginning August 1, 2000, each month the Department shall
25pay into the Local Government Tax Fund 80% of the net revenue
26realized for the preceding month from the 1.25% rate on the

 

 

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1selling price of motor fuel and gasohol.
2    Beginning October 1, 2009, each month the Department shall
3pay into the Capital Projects Fund an amount that is equal to
4an amount estimated by the Department to represent 80% of the
5net revenue realized for the preceding month from the sale of
6candy, grooming and hygiene products, and soft drinks that had
7been taxed at a rate of 1% prior to September 1, 2009 but that
8are now taxed at 6.25%.
9    Beginning July 1, 2013, each month the Department shall pay
10into the Underground Storage Tank Fund from the proceeds
11collected under this Act, the Use Tax Act, the Service Use Tax
12Act, and the Retailers' Occupation Tax Act an amount equal to
13the average monthly deficit in the Underground Storage Tank
14Fund during the prior year, as certified annually by the
15Illinois Environmental Protection Agency, but the total
16payment into the Underground Storage Tank Fund under this Act,
17the Use Tax Act, the Service Use Tax Act, and the Retailers'
18Occupation Tax Act shall not exceed $18,000,000 in any State
19fiscal year. As used in this paragraph, the "average monthly
20deficit" shall be equal to the difference between the average
21monthly claims for payment by the fund and the average monthly
22revenues deposited into the fund, excluding payments made
23pursuant to this paragraph.
24    Beginning July 1, 2015, of the remainder of the moneys
25received by the Department under the Use Tax Act, the Service
26Use Tax Act, this Act, and the Retailers' Occupation Tax Act,

 

 

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1each month the Department shall deposit $500,000 into the State
2Crime Laboratory Fund.
3    Of the remainder of the moneys received by the Department
4pursuant to this Act, (a) 1.75% thereof shall be paid into the
5Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
6and after July 1, 1989, 3.8% thereof shall be paid into the
7Build Illinois Fund; provided, however, that if in any fiscal
8year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
9may be, of the moneys received by the Department and required
10to be paid into the Build Illinois Fund pursuant to Section 3
11of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
12Act, Section 9 of the Service Use Tax Act, and Section 9 of the
13Service Occupation Tax Act, such Acts being hereinafter called
14the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
15may be, of moneys being hereinafter called the "Tax Act
16Amount", and (2) the amount transferred to the Build Illinois
17Fund from the State and Local Sales Tax Reform Fund shall be
18less than the Annual Specified Amount (as defined in Section 3
19of the Retailers' Occupation Tax Act), an amount equal to the
20difference shall be immediately paid into the Build Illinois
21Fund from other moneys received by the Department pursuant to
22the Tax Acts; and further provided, that if on the last
23business day of any month the sum of (1) the Tax Act Amount
24required to be deposited into the Build Illinois Account in the
25Build Illinois Fund during such month and (2) the amount
26transferred during such month to the Build Illinois Fund from

 

 

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1the State and Local Sales Tax Reform Fund shall have been less
2than 1/12 of the Annual Specified Amount, an amount equal to
3the difference shall be immediately paid into the Build
4Illinois Fund from other moneys received by the Department
5pursuant to the Tax Acts; and, further provided, that in no
6event shall the payments required under the preceding proviso
7result in aggregate payments into the Build Illinois Fund
8pursuant to this clause (b) for any fiscal year in excess of
9the greater of (i) the Tax Act Amount or (ii) the Annual
10Specified Amount for such fiscal year; and, further provided,
11that the amounts payable into the Build Illinois Fund under
12this clause (b) shall be payable only until such time as the
13aggregate amount on deposit under each trust indenture securing
14Bonds issued and outstanding pursuant to the Build Illinois
15Bond Act is sufficient, taking into account any future
16investment income, to fully provide, in accordance with such
17indenture, for the defeasance of or the payment of the
18principal of, premium, if any, and interest on the Bonds
19secured by such indenture and on any Bonds expected to be
20issued thereafter and all fees and costs payable with respect
21thereto, all as certified by the Director of the Bureau of the
22Budget (now Governor's Office of Management and Budget). If on
23the last business day of any month in which Bonds are
24outstanding pursuant to the Build Illinois Bond Act, the
25aggregate of the moneys deposited in the Build Illinois Bond
26Account in the Build Illinois Fund in such month shall be less

 

 

HB2682- 72 -LRB101 09562 HLH 54660 b

1than the amount required to be transferred in such month from
2the Build Illinois Bond Account to the Build Illinois Bond
3Retirement and Interest Fund pursuant to Section 13 of the
4Build Illinois Bond Act, an amount equal to such deficiency
5shall be immediately paid from other moneys received by the
6Department pursuant to the Tax Acts to the Build Illinois Fund;
7provided, however, that any amounts paid to the Build Illinois
8Fund in any fiscal year pursuant to this sentence shall be
9deemed to constitute payments pursuant to clause (b) of the
10preceding sentence and shall reduce the amount otherwise
11payable for such fiscal year pursuant to clause (b) of the
12preceding sentence. The moneys received by the Department
13pursuant to this Act and required to be deposited into the
14Build Illinois Fund are subject to the pledge, claim and charge
15set forth in Section 12 of the Build Illinois Bond Act.
16    Subject to payment of amounts into the Build Illinois Fund
17as provided in the preceding paragraph or in any amendment
18thereto hereafter enacted, the following specified monthly
19installment of the amount requested in the certificate of the
20Chairman of the Metropolitan Pier and Exposition Authority
21provided under Section 8.25f of the State Finance Act, but not
22in excess of the sums designated as "Total Deposit", shall be
23deposited in the aggregate from collections under Section 9 of
24the Use Tax Act, Section 9 of the Service Use Tax Act, Section
259 of the Service Occupation Tax Act, and Section 3 of the
26Retailers' Occupation Tax Act into the McCormick Place

 

 

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1Expansion Project Fund in the specified fiscal years.
2Fiscal YearTotal Deposit
31993         $0
41994 53,000,000
51995 58,000,000
61996 61,000,000
71997 64,000,000
81998 68,000,000
91999 71,000,000
102000 75,000,000
112001 80,000,000
122002 93,000,000
132003 99,000,000
142004103,000,000
152005108,000,000
162006113,000,000
172007119,000,000
182008126,000,000
192009132,000,000
202010139,000,000
212011146,000,000
222012153,000,000
232013161,000,000
242014170,000,000
252015179,000,000

 

 

HB2682- 74 -LRB101 09562 HLH 54660 b

12016189,000,000
22017199,000,000
32018210,000,000
42019221,000,000
52020233,000,000
62021246,000,000
72022260,000,000
82023275,000,000
92024 275,000,000
102025 275,000,000
112026 279,000,000
122027 292,000,000
132028 307,000,000
142029 322,000,000
152030 338,000,000
162031 350,000,000
172032 350,000,000
18and
19each fiscal year
20thereafter that bonds
21are outstanding under
22Section 13.2 of the
23Metropolitan Pier and
24Exposition Authority Act,
25but not after fiscal year 2060.
26    Beginning July 20, 1993 and in each month of each fiscal

 

 

HB2682- 75 -LRB101 09562 HLH 54660 b

1year thereafter, one-eighth of the amount requested in the
2certificate of the Chairman of the Metropolitan Pier and
3Exposition Authority for that fiscal year, less the amount
4deposited into the McCormick Place Expansion Project Fund by
5the State Treasurer in the respective month under subsection
6(g) of Section 13 of the Metropolitan Pier and Exposition
7Authority Act, plus cumulative deficiencies in the deposits
8required under this Section for previous months and years,
9shall be deposited into the McCormick Place Expansion Project
10Fund, until the full amount requested for the fiscal year, but
11not in excess of the amount specified above as "Total Deposit",
12has been deposited.
13    Subject to payment of amounts into the Capital Projects
14Fund, the Build Illinois Fund, and the McCormick Place
15Expansion Project Fund pursuant to the preceding paragraphs or
16in any amendments thereto hereafter enacted, the Department
17shall each month deposit into the Aviation Fuel Sales Tax
18Refund Fund an amount estimated by the Department to be
19required for refunds of the 80% portion of the tax on aviation
20fuel under this Act.
21    Subject to payment of amounts into the Build Illinois Fund
22and the McCormick Place Expansion Project Fund pursuant to the
23preceding paragraphs or in any amendments thereto hereafter
24enacted, beginning July 1, 1993 and ending on September 30,
252013, the Department shall each month pay into the Illinois Tax
26Increment Fund 0.27% of 80% of the net revenue realized for the

 

 

HB2682- 76 -LRB101 09562 HLH 54660 b

1preceding month from the 6.25% general rate on the selling
2price of tangible personal property.
3    Subject to payment of amounts into the Build Illinois Fund
4and the McCormick Place Expansion Project Fund pursuant to the
5preceding paragraphs or in any amendments thereto hereafter
6enacted, beginning with the receipt of the first report of
7taxes paid by an eligible business and continuing for a 25-year
8period, the Department shall each month pay into the Energy
9Infrastructure Fund 80% of the net revenue realized from the
106.25% general rate on the selling price of Illinois-mined coal
11that was sold to an eligible business. For purposes of this
12paragraph, the term "eligible business" means a new electric
13generating facility certified pursuant to Section 605-332 of
14the Department of Commerce and Economic Opportunity Law of the
15Civil Administrative Code of Illinois.
16    Subject to payment of amounts into the Build Illinois Fund,
17the McCormick Place Expansion Project Fund, the Illinois Tax
18Increment Fund, and the Energy Infrastructure Fund pursuant to
19the preceding paragraphs or in any amendments to this Section
20hereafter enacted, beginning on the first day of the first
21calendar month to occur on or after August 26, 2014 (the
22effective date of Public Act 98-1098), each month, from the
23collections made under Section 9 of the Use Tax Act, Section 9
24of the Service Use Tax Act, Section 9 of the Service Occupation
25Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
26the Department shall pay into the Tax Compliance and

 

 

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1Administration Fund, to be used, subject to appropriation, to
2fund additional auditors and compliance personnel at the
3Department of Revenue, an amount equal to 1/12 of 5% of 80% of
4the cash receipts collected during the preceding fiscal year by
5the Audit Bureau of the Department under the Use Tax Act, the
6Service Use Tax Act, the Service Occupation Tax Act, the
7Retailers' Occupation Tax Act, and associated local occupation
8and use taxes administered by the Department (except the amount
9collected on aviation fuel sold on or after December 1, 2019).
10    Subject to payments of amounts into the Build Illinois
11Fund, the McCormick Place Expansion Project Fund, the Illinois
12Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
13Compliance and Administration Fund as provided in this Section,
14beginning on July 1, 2018 the Department shall pay each month
15into the Downstate Public Transportation Fund the moneys
16required to be so paid under Section 2-3 of the Downstate
17Public Transportation Act.
18    Of the remainder of the moneys received by the Department
19pursuant to this Act, 75% shall be paid into the General
20Revenue Fund of the State Treasury and 25% shall be reserved in
21a special account and used only for the transfer to the Common
22School Fund as part of the monthly transfer from the General
23Revenue Fund in accordance with Section 8a of the State Finance
24Act.
25    The Department may, upon separate written notice to a
26taxpayer, require the taxpayer to prepare and file with the

 

 

HB2682- 78 -LRB101 09562 HLH 54660 b

1Department on a form prescribed by the Department within not
2less than 60 days after receipt of the notice an annual
3information return for the tax year specified in the notice.
4Such annual return to the Department shall include a statement
5of gross receipts as shown by the taxpayer's last Federal
6income tax return. If the total receipts of the business as
7reported in the Federal income tax return do not agree with the
8gross receipts reported to the Department of Revenue for the
9same period, the taxpayer shall attach to his annual return a
10schedule showing a reconciliation of the 2 amounts and the
11reasons for the difference. The taxpayer's annual return to the
12Department shall also disclose the cost of goods sold by the
13taxpayer during the year covered by such return, opening and
14closing inventories of such goods for such year, cost of goods
15used from stock or taken from stock and given away by the
16taxpayer during such year, pay roll information of the
17taxpayer's business during such year and any additional
18reasonable information which the Department deems would be
19helpful in determining the accuracy of the monthly, quarterly
20or annual returns filed by such taxpayer as hereinbefore
21provided for in this Section.
22    If the annual information return required by this Section
23is not filed when and as required, the taxpayer shall be liable
24as follows:
25        (i) Until January 1, 1994, the taxpayer shall be liable
26    for a penalty equal to 1/6 of 1% of the tax due from such

 

 

HB2682- 79 -LRB101 09562 HLH 54660 b

1    taxpayer under this Act during the period to be covered by
2    the annual return for each month or fraction of a month
3    until such return is filed as required, the penalty to be
4    assessed and collected in the same manner as any other
5    penalty provided for in this Act.
6        (ii) On and after January 1, 1994, the taxpayer shall
7    be liable for a penalty as described in Section 3-4 of the
8    Uniform Penalty and Interest Act.
9    The chief executive officer, proprietor, owner or highest
10ranking manager shall sign the annual return to certify the
11accuracy of the information contained therein. Any person who
12willfully signs the annual return containing false or
13inaccurate information shall be guilty of perjury and punished
14accordingly. The annual return form prescribed by the
15Department shall include a warning that the person signing the
16return may be liable for perjury.
17    The foregoing portion of this Section concerning the filing
18of an annual information return shall not apply to a serviceman
19who is not required to file an income tax return with the
20United States Government.
21    As soon as possible after the first day of each month, upon
22certification of the Department of Revenue, the Comptroller
23shall order transferred and the Treasurer shall transfer from
24the General Revenue Fund to the Motor Fuel Tax Fund an amount
25equal to 1.7% of 80% of the net revenue realized under this Act
26for the second preceding month. Beginning April 1, 2000, this

 

 

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1transfer is no longer required and shall not be made.
2    Net revenue realized for a month shall be the revenue
3collected by the State pursuant to this Act, less the amount
4paid out during that month as refunds to taxpayers for
5overpayment of liability.
6    For greater simplicity of administration, it shall be
7permissible for manufacturers, importers and wholesalers whose
8products are sold by numerous servicemen in Illinois, and who
9wish to do so, to assume the responsibility for accounting and
10paying to the Department all tax accruing under this Act with
11respect to such sales, if the servicemen who are affected do
12not make written objection to the Department to this
13arrangement.
14(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
15100-303, eff. 8-24-17; 100-363, eff. 7-1-18; 100-863, eff.
168-14-18; 100-1171, eff. 1-4-19.)
 
17    (35 ILCS 115/17)  (from Ch. 120, par. 439.117)
18    Sec. 17. If it shall appear that an amount of tax or
19penalty or interest has been paid in error hereunder directly
20to the Department by a serviceman, whether such amount be paid
21through a mistake of fact or an error of law, such serviceman
22may file a claim for credit or refund with the Department. If
23it shall appear that an amount of tax or penalty or interest
24has been paid in error to the Department hereunder by a
25supplier who is required or authorized to collect and remit the

 

 

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1Service Occupation Tax, whether such amount be paid through a
2mistake of fact or an error of law, such supplier may file a
3claim for credit or refund with the Department, provided that
4no credit shall be allowed nor any refund made for any amount
5paid by any such supplier unless it shall appear that he bore
6the burden of such amount and did not shift the burden thereof
7to anyone else (as in the case of a duplicated tax payment
8which the supplier made to the Department and did not collect
9from anyone else), or unless it shall appear that he or his
10legal representative has unconditionally repaid such amount to
11his vendee (1) who bore the burden thereof and has not shifted
12such burden directly or indirectly in any manner whatsoever;
13(2) who, if he has shifted such burden, has repaid
14unconditionally such amount to his own vendee, and (3) who is
15not entitled to receive any reimbursement therefor from any
16other source than from his supplier, nor to be relieved of such
17burden in any other manner whatsoever.
18    Any credit or refund that is allowed under this Section
19shall bear interest at the rate and in the manner specified in
20the Uniform Penalty and Interest Act.
21    Any claim filed hereunder shall be filed upon a form
22prescribed and furnished by the Department. The claim shall be
23signed by the claimant (or by the claimant's legal
24representative if the claimant shall have died or become a
25person under legal disability), or by a duly authorized agent
26of the claimant or his or her legal representative.

 

 

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1    A claim for credit or refund shall be considered to have
2been filed with the Department on the date upon which it is
3received by the Department. Upon receipt of any claim for
4credit or refund filed under this Act, any officer or employee
5of the Department, authorized in writing by the Director of
6Revenue to acknowledge receipt of such claims on behalf of the
7Department, shall execute on behalf of the Department, and
8shall deliver or mail to the claimant or his or her duly
9authorized agent, a written receipt, acknowledging that the
10claim has been filed with the Department, describing the claim
11in sufficient detail to identify it and stating the date upon
12which the claim was received by the Department. Such written
13receipt shall be prima facie evidence that the Department
14received the claim described in such receipt and shall be prima
15facie evidence of the date when such claim was received by the
16Department. In the absence of such a written receipt, the
17records of the Department as to when the claim was received by
18the Department, or as to whether or not the claim was received
19at all by the Department, shall be deemed to be prima facie
20correct upon these questions in the event of any dispute
21between the claimant (or his legal representative) and the
22Department concerning these questions.
23    In case the Department determines that the claimant is
24entitled to a refund, such refund shall be made only from the
25Aviation Fuel Sales Tax Refund Fund or from such appropriation
26as may be available for that purpose, as appropriate. If it

 

 

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1appears unlikely that the amount available appropriated would
2permit everyone having a claim allowed during the period
3covered by such appropriation or from the Aviation Fuel Sales
4Tax Refund Fund, as appropriate, to elect to receive a cash
5refund, the Department, by rule or regulation, shall provide
6for the payment of refunds in hardship cases and shall define
7what types of cases qualify as hardship cases.
8(Source: P.A. 87-205.)
 
9    Section 25. The Retailers' Occupation Tax Act is amended by
10changing Sections 3, 6, and 11 as follows:
 
11    (35 ILCS 120/3)  (from Ch. 120, par. 442)
12    Sec. 3. Except as provided in this Section, on or before
13the twentieth day of each calendar month, every person engaged
14in the business of selling tangible personal property at retail
15in this State during the preceding calendar month shall file a
16return with the Department, stating:
17        1. The name of the seller;
18        2. His residence address and the address of his
19    principal place of business and the address of the
20    principal place of business (if that is a different
21    address) from which he engages in the business of selling
22    tangible personal property at retail in this State;
23        3. Total amount of receipts received by him during the
24    preceding calendar month or quarter, as the case may be,

 

 

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1    from sales of tangible personal property, and from services
2    furnished, by him during such preceding calendar month or
3    quarter;
4        4. Total amount received by him during the preceding
5    calendar month or quarter on charge and time sales of
6    tangible personal property, and from services furnished,
7    by him prior to the month or quarter for which the return
8    is filed;
9        5. Deductions allowed by law;
10        6. Gross receipts which were received by him during the
11    preceding calendar month or quarter and upon the basis of
12    which the tax is imposed;
13        7. The amount of credit provided in Section 2d of this
14    Act;
15        8. The amount of tax due;
16        9. The signature of the taxpayer; and
17        10. Such other reasonable information as the
18    Department may require.
19    On and after January 1, 2018, except for returns for motor
20vehicles, watercraft, aircraft, and trailers that are required
21to be registered with an agency of this State, with respect to
22retailers whose annual gross receipts average $20,000 or more,
23all returns required to be filed pursuant to this Act shall be
24filed electronically. Retailers who demonstrate that they do
25not have access to the Internet or demonstrate hardship in
26filing electronically may petition the Department to waive the

 

 

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1electronic filing requirement.
2    If a taxpayer fails to sign a return within 30 days after
3the proper notice and demand for signature by the Department,
4the return shall be considered valid and any amount shown to be
5due on the return shall be deemed assessed.
6    Each return shall be accompanied by the statement of
7prepaid tax issued pursuant to Section 2e for which credit is
8claimed.
9    Prior to October 1, 2003, and on and after September 1,
102004 a retailer may accept a Manufacturer's Purchase Credit
11certification from a purchaser in satisfaction of Use Tax as
12provided in Section 3-85 of the Use Tax Act if the purchaser
13provides the appropriate documentation as required by Section
143-85 of the Use Tax Act. A Manufacturer's Purchase Credit
15certification, accepted by a retailer prior to October 1, 2003
16and on and after September 1, 2004 as provided in Section 3-85
17of the Use Tax Act, may be used by that retailer to satisfy
18Retailers' Occupation Tax liability in the amount claimed in
19the certification, not to exceed 6.25% of the receipts subject
20to tax from a qualifying purchase. A Manufacturer's Purchase
21Credit reported on any original or amended return filed under
22this Act after October 20, 2003 for reporting periods prior to
23September 1, 2004 shall be disallowed. Manufacturer's
24Purchaser Credit reported on annual returns due on or after
25January 1, 2005 will be disallowed for periods prior to
26September 1, 2004. No Manufacturer's Purchase Credit may be

 

 

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1used after September 30, 2003 through August 31, 2004 to
2satisfy any tax liability imposed under this Act, including any
3audit liability.
4    The Department may require returns to be filed on a
5quarterly basis. If so required, a return for each calendar
6quarter shall be filed on or before the twentieth day of the
7calendar month following the end of such calendar quarter. The
8taxpayer shall also file a return with the Department for each
9of the first two months of each calendar quarter, on or before
10the twentieth day of the following calendar month, stating:
11        1. The name of the seller;
12        2. The address of the principal place of business from
13    which he engages in the business of selling tangible
14    personal property at retail in this State;
15        3. The total amount of taxable receipts received by him
16    during the preceding calendar month from sales of tangible
17    personal property by him during such preceding calendar
18    month, including receipts from charge and time sales, but
19    less all deductions allowed by law;
20        4. The amount of credit provided in Section 2d of this
21    Act;
22        5. The amount of tax due; and
23        6. Such other reasonable information as the Department
24    may require.
25    Beginning on January 1, 2020, every person engaged in the
26business of selling aviation fuel at retail in this State

 

 

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1during the preceding calendar month shall, instead of reporting
2and paying tax as otherwise required by this Section, file an
3aviation fuel tax return with the Department on or before the
4twentieth day of each calendar month. The requirements related
5to the return shall be as otherwise provided in this Section.
6Notwithstanding any other provisions of this Act to the
7contrary, retailers selling aviation fuel shall file all
8aviation fuel tax returns and shall make all aviation fuel tax
9payments by electronic means in the manner and form required by
10the Department. For purposes of this paragraph, "aviation fuel"
11means a product that is intended for use or offered for sale as
12fuel for an aircraft.
13    Beginning on October 1, 2003, any person who is not a
14licensed distributor, importing distributor, or manufacturer,
15as defined in the Liquor Control Act of 1934, but is engaged in
16the business of selling, at retail, alcoholic liquor shall file
17a statement with the Department of Revenue, in a format and at
18a time prescribed by the Department, showing the total amount
19paid for alcoholic liquor purchased during the preceding month
20and such other information as is reasonably required by the
21Department. The Department may adopt rules to require that this
22statement be filed in an electronic or telephonic format. Such
23rules may provide for exceptions from the filing requirements
24of this paragraph. For the purposes of this paragraph, the term
25"alcoholic liquor" shall have the meaning prescribed in the
26Liquor Control Act of 1934.

 

 

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1    Beginning on October 1, 2003, every distributor, importing
2distributor, and manufacturer of alcoholic liquor as defined in
3the Liquor Control Act of 1934, shall file a statement with the
4Department of Revenue, no later than the 10th day of the month
5for the preceding month during which transactions occurred, by
6electronic means, showing the total amount of gross receipts
7from the sale of alcoholic liquor sold or distributed during
8the preceding month to purchasers; identifying the purchaser to
9whom it was sold or distributed; the purchaser's tax
10registration number; and such other information reasonably
11required by the Department. A distributor, importing
12distributor, or manufacturer of alcoholic liquor must
13personally deliver, mail, or provide by electronic means to
14each retailer listed on the monthly statement a report
15containing a cumulative total of that distributor's, importing
16distributor's, or manufacturer's total sales of alcoholic
17liquor to that retailer no later than the 10th day of the month
18for the preceding month during which the transaction occurred.
19The distributor, importing distributor, or manufacturer shall
20notify the retailer as to the method by which the distributor,
21importing distributor, or manufacturer will provide the sales
22information. If the retailer is unable to receive the sales
23information by electronic means, the distributor, importing
24distributor, or manufacturer shall furnish the sales
25information by personal delivery or by mail. For purposes of
26this paragraph, the term "electronic means" includes, but is

 

 

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1not limited to, the use of a secure Internet website, e-mail,
2or facsimile.
3    If a total amount of less than $1 is payable, refundable or
4creditable, such amount shall be disregarded if it is less than
550 cents and shall be increased to $1 if it is 50 cents or more.
6    Beginning October 1, 1993, a taxpayer who has an average
7monthly tax liability of $150,000 or more shall make all
8payments required by rules of the Department by electronic
9funds transfer. Beginning October 1, 1994, a taxpayer who has
10an average monthly tax liability of $100,000 or more shall make
11all payments required by rules of the Department by electronic
12funds transfer. Beginning October 1, 1995, a taxpayer who has
13an average monthly tax liability of $50,000 or more shall make
14all payments required by rules of the Department by electronic
15funds transfer. Beginning October 1, 2000, a taxpayer who has
16an annual tax liability of $200,000 or more shall make all
17payments required by rules of the Department by electronic
18funds transfer. The term "annual tax liability" shall be the
19sum of the taxpayer's liabilities under this Act, and under all
20other State and local occupation and use tax laws administered
21by the Department, for the immediately preceding calendar year.
22The term "average monthly tax liability" shall be the sum of
23the taxpayer's liabilities under this Act, and under all other
24State and local occupation and use tax laws administered by the
25Department, for the immediately preceding calendar year
26divided by 12. Beginning on October 1, 2002, a taxpayer who has

 

 

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1a tax liability in the amount set forth in subsection (b) of
2Section 2505-210 of the Department of Revenue Law shall make
3all payments required by rules of the Department by electronic
4funds transfer.
5    Before August 1 of each year beginning in 1993, the
6Department shall notify all taxpayers required to make payments
7by electronic funds transfer. All taxpayers required to make
8payments by electronic funds transfer shall make those payments
9for a minimum of one year beginning on October 1.
10    Any taxpayer not required to make payments by electronic
11funds transfer may make payments by electronic funds transfer
12with the permission of the Department.
13    All taxpayers required to make payment by electronic funds
14transfer and any taxpayers authorized to voluntarily make
15payments by electronic funds transfer shall make those payments
16in the manner authorized by the Department.
17    The Department shall adopt such rules as are necessary to
18effectuate a program of electronic funds transfer and the
19requirements of this Section.
20    Any amount which is required to be shown or reported on any
21return or other document under this Act shall, if such amount
22is not a whole-dollar amount, be increased to the nearest
23whole-dollar amount in any case where the fractional part of a
24dollar is 50 cents or more, and decreased to the nearest
25whole-dollar amount where the fractional part of a dollar is
26less than 50 cents.

 

 

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1    If the retailer is otherwise required to file a monthly
2return and if the retailer's average monthly tax liability to
3the Department does not exceed $200, the Department may
4authorize his returns to be filed on a quarter annual basis,
5with the return for January, February and March of a given year
6being due by April 20 of such year; with the return for April,
7May and June of a given year being due by July 20 of such year;
8with the return for July, August and September of a given year
9being due by October 20 of such year, and with the return for
10October, November and December of a given year being due by
11January 20 of the following year.
12    If the retailer is otherwise required to file a monthly or
13quarterly return and if the retailer's average monthly tax
14liability with the Department does not exceed $50, the
15Department may authorize his returns to be filed on an annual
16basis, with the return for a given year being due by January 20
17of the following year.
18    Such quarter annual and annual returns, as to form and
19substance, shall be subject to the same requirements as monthly
20returns.
21    Notwithstanding any other provision in this Act concerning
22the time within which a retailer may file his return, in the
23case of any retailer who ceases to engage in a kind of business
24which makes him responsible for filing returns under this Act,
25such retailer shall file a final return under this Act with the
26Department not more than one month after discontinuing such

 

 

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1business.
2    Where the same person has more than one business registered
3with the Department under separate registrations under this
4Act, such person may not file each return that is due as a
5single return covering all such registered businesses, but
6shall file separate returns for each such registered business.
7    In addition, with respect to motor vehicles, watercraft,
8aircraft, and trailers that are required to be registered with
9an agency of this State, except as otherwise provided in this
10Section, every retailer selling this kind of tangible personal
11property shall file, with the Department, upon a form to be
12prescribed and supplied by the Department, a separate return
13for each such item of tangible personal property which the
14retailer sells, except that if, in the same transaction, (i) a
15retailer of aircraft, watercraft, motor vehicles or trailers
16transfers more than one aircraft, watercraft, motor vehicle or
17trailer to another aircraft, watercraft, motor vehicle
18retailer or trailer retailer for the purpose of resale or (ii)
19a retailer of aircraft, watercraft, motor vehicles, or trailers
20transfers more than one aircraft, watercraft, motor vehicle, or
21trailer to a purchaser for use as a qualifying rolling stock as
22provided in Section 2-5 of this Act, then that seller may
23report the transfer of all aircraft, watercraft, motor vehicles
24or trailers involved in that transaction to the Department on
25the same uniform invoice-transaction reporting return form.
26For purposes of this Section, "watercraft" means a Class 2,

 

 

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1Class 3, or Class 4 watercraft as defined in Section 3-2 of the
2Boat Registration and Safety Act, a personal watercraft, or any
3boat equipped with an inboard motor.
4    In addition, with respect to motor vehicles, watercraft,
5aircraft, and trailers that are required to be registered with
6an agency of this State, every person who is engaged in the
7business of leasing or renting such items and who, in
8connection with such business, sells any such item to a
9retailer for the purpose of resale is, notwithstanding any
10other provision of this Section to the contrary, authorized to
11meet the return-filing requirement of this Act by reporting the
12transfer of all the aircraft, watercraft, motor vehicles, or
13trailers transferred for resale during a month to the
14Department on the same uniform invoice-transaction reporting
15return form on or before the 20th of the month following the
16month in which the transfer takes place. Notwithstanding any
17other provision of this Act to the contrary, all returns filed
18under this paragraph must be filed by electronic means in the
19manner and form as required by the Department.
20    Any retailer who sells only motor vehicles, watercraft,
21aircraft, or trailers that are required to be registered with
22an agency of this State, so that all retailers' occupation tax
23liability is required to be reported, and is reported, on such
24transaction reporting returns and who is not otherwise required
25to file monthly or quarterly returns, need not file monthly or
26quarterly returns. However, those retailers shall be required

 

 

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1to file returns on an annual basis.
2    The transaction reporting return, in the case of motor
3vehicles or trailers that are required to be registered with an
4agency of this State, shall be the same document as the Uniform
5Invoice referred to in Section 5-402 of the Illinois Vehicle
6Code and must show the name and address of the seller; the name
7and address of the purchaser; the amount of the selling price
8including the amount allowed by the retailer for traded-in
9property, if any; the amount allowed by the retailer for the
10traded-in tangible personal property, if any, to the extent to
11which Section 1 of this Act allows an exemption for the value
12of traded-in property; the balance payable after deducting such
13trade-in allowance from the total selling price; the amount of
14tax due from the retailer with respect to such transaction; the
15amount of tax collected from the purchaser by the retailer on
16such transaction (or satisfactory evidence that such tax is not
17due in that particular instance, if that is claimed to be the
18fact); the place and date of the sale; a sufficient
19identification of the property sold; such other information as
20is required in Section 5-402 of the Illinois Vehicle Code, and
21such other information as the Department may reasonably
22require.
23    The transaction reporting return in the case of watercraft
24or aircraft must show the name and address of the seller; the
25name and address of the purchaser; the amount of the selling
26price including the amount allowed by the retailer for

 

 

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1traded-in property, if any; the amount allowed by the retailer
2for the traded-in tangible personal property, if any, to the
3extent to which Section 1 of this Act allows an exemption for
4the value of traded-in property; the balance payable after
5deducting such trade-in allowance from the total selling price;
6the amount of tax due from the retailer with respect to such
7transaction; the amount of tax collected from the purchaser by
8the retailer on such transaction (or satisfactory evidence that
9such tax is not due in that particular instance, if that is
10claimed to be the fact); the place and date of the sale, a
11sufficient identification of the property sold, and such other
12information as the Department may reasonably require.
13    Such transaction reporting return shall be filed not later
14than 20 days after the day of delivery of the item that is
15being sold, but may be filed by the retailer at any time sooner
16than that if he chooses to do so. The transaction reporting
17return and tax remittance or proof of exemption from the
18Illinois use tax may be transmitted to the Department by way of
19the State agency with which, or State officer with whom the
20tangible personal property must be titled or registered (if
21titling or registration is required) if the Department and such
22agency or State officer determine that this procedure will
23expedite the processing of applications for title or
24registration.
25    With each such transaction reporting return, the retailer
26shall remit the proper amount of tax due (or shall submit

 

 

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1satisfactory evidence that the sale is not taxable if that is
2the case), to the Department or its agents, whereupon the
3Department shall issue, in the purchaser's name, a use tax
4receipt (or a certificate of exemption if the Department is
5satisfied that the particular sale is tax exempt) which such
6purchaser may submit to the agency with which, or State officer
7with whom, he must title or register the tangible personal
8property that is involved (if titling or registration is
9required) in support of such purchaser's application for an
10Illinois certificate or other evidence of title or registration
11to such tangible personal property.
12    No retailer's failure or refusal to remit tax under this
13Act precludes a user, who has paid the proper tax to the
14retailer, from obtaining his certificate of title or other
15evidence of title or registration (if titling or registration
16is required) upon satisfying the Department that such user has
17paid the proper tax (if tax is due) to the retailer. The
18Department shall adopt appropriate rules to carry out the
19mandate of this paragraph.
20    If the user who would otherwise pay tax to the retailer
21wants the transaction reporting return filed and the payment of
22the tax or proof of exemption made to the Department before the
23retailer is willing to take these actions and such user has not
24paid the tax to the retailer, such user may certify to the fact
25of such delay by the retailer and may (upon the Department
26being satisfied of the truth of such certification) transmit

 

 

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1the information required by the transaction reporting return
2and the remittance for tax or proof of exemption directly to
3the Department and obtain his tax receipt or exemption
4determination, in which event the transaction reporting return
5and tax remittance (if a tax payment was required) shall be
6credited by the Department to the proper retailer's account
7with the Department, but without the 2.1% or 1.75% discount
8provided for in this Section being allowed. When the user pays
9the tax directly to the Department, he shall pay the tax in the
10same amount and in the same form in which it would be remitted
11if the tax had been remitted to the Department by the retailer.
12    Refunds made by the seller during the preceding return
13period to purchasers, on account of tangible personal property
14returned to the seller, shall be allowed as a deduction under
15subdivision 5 of his monthly or quarterly return, as the case
16may be, in case the seller had theretofore included the
17receipts from the sale of such tangible personal property in a
18return filed by him and had paid the tax imposed by this Act
19with respect to such receipts.
20    Where the seller is a corporation, the return filed on
21behalf of such corporation shall be signed by the president,
22vice-president, secretary or treasurer or by the properly
23accredited agent of such corporation.
24    Where the seller is a limited liability company, the return
25filed on behalf of the limited liability company shall be
26signed by a manager, member, or properly accredited agent of

 

 

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1the limited liability company.
2    Except as provided in this Section, the retailer filing the
3return under this Section shall, at the time of filing such
4return, pay to the Department the amount of tax imposed by this
5Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
6on and after January 1, 1990, or $5 per calendar year,
7whichever is greater, which is allowed to reimburse the
8retailer for the expenses incurred in keeping records,
9preparing and filing returns, remitting the tax and supplying
10data to the Department on request. The discount under this
11Section is not allowed for taxes paid on aviation fuel that are
12deposited into the State Aviation Program Fund under this Act.
13Any prepayment made pursuant to Section 2d of this Act shall be
14included in the amount on which such 2.1% or 1.75% discount is
15computed. In the case of retailers who report and pay the tax
16on a transaction by transaction basis, as provided in this
17Section, such discount shall be taken with each such tax
18remittance instead of when such retailer files his periodic
19return. The discount allowed under this Section is allowed only
20for returns that are filed in the manner required by this Act.
21The Department may disallow the discount for retailers whose
22certificate of registration is revoked at the time the return
23is filed, but only if the Department's decision to revoke the
24certificate of registration has become final.
25    Before October 1, 2000, if the taxpayer's average monthly
26tax liability to the Department under this Act, the Use Tax

 

 

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1Act, the Service Occupation Tax Act, and the Service Use Tax
2Act, excluding any liability for prepaid sales tax to be
3remitted in accordance with Section 2d of this Act, was $10,000
4or more during the preceding 4 complete calendar quarters, he
5shall file a return with the Department each month by the 20th
6day of the month next following the month during which such tax
7liability is incurred and shall make payments to the Department
8on or before the 7th, 15th, 22nd and last day of the month
9during which such liability is incurred. On and after October
101, 2000, if the taxpayer's average monthly tax liability to the
11Department under this Act, the Use Tax Act, the Service
12Occupation Tax Act, and the Service Use Tax Act, excluding any
13liability for prepaid sales tax to be remitted in accordance
14with Section 2d of this Act, was $20,000 or more during the
15preceding 4 complete calendar quarters, he shall file a return
16with the Department each month by the 20th day of the month
17next following the month during which such tax liability is
18incurred and shall make payment to the Department on or before
19the 7th, 15th, 22nd and last day of the month during which such
20liability is incurred. If the month during which such tax
21liability is incurred began prior to January 1, 1985, each
22payment shall be in an amount equal to 1/4 of the taxpayer's
23actual liability for the month or an amount set by the
24Department not to exceed 1/4 of the average monthly liability
25of the taxpayer to the Department for the preceding 4 complete
26calendar quarters (excluding the month of highest liability and

 

 

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1the month of lowest liability in such 4 quarter period). If the
2month during which such tax liability is incurred begins on or
3after January 1, 1985 and prior to January 1, 1987, each
4payment shall be in an amount equal to 22.5% of the taxpayer's
5actual liability for the month or 27.5% of the taxpayer's
6liability for the same calendar month of the preceding year. If
7the month during which such tax liability is incurred begins on
8or after January 1, 1987 and prior to January 1, 1988, each
9payment shall be in an amount equal to 22.5% of the taxpayer's
10actual liability for the month or 26.25% of the taxpayer's
11liability for the same calendar month of the preceding year. If
12the month during which such tax liability is incurred begins on
13or after January 1, 1988, and prior to January 1, 1989, or
14begins on or after January 1, 1996, each payment shall be in an
15amount equal to 22.5% of the taxpayer's actual liability for
16the month or 25% of the taxpayer's liability for the same
17calendar month of the preceding year. If the month during which
18such tax liability is incurred begins on or after January 1,
191989, and prior to January 1, 1996, each payment shall be in an
20amount equal to 22.5% of the taxpayer's actual liability for
21the month or 25% of the taxpayer's liability for the same
22calendar month of the preceding year or 100% of the taxpayer's
23actual liability for the quarter monthly reporting period. The
24amount of such quarter monthly payments shall be credited
25against the final tax liability of the taxpayer's return for
26that month. Before October 1, 2000, once applicable, the

 

 

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1requirement of the making of quarter monthly payments to the
2Department by taxpayers having an average monthly tax liability
3of $10,000 or more as determined in the manner provided above
4shall continue until such taxpayer's average monthly liability
5to the Department during the preceding 4 complete calendar
6quarters (excluding the month of highest liability and the
7month of lowest liability) is less than $9,000, or until such
8taxpayer's average monthly liability to the Department as
9computed for each calendar quarter of the 4 preceding complete
10calendar quarter period is less than $10,000. However, if a
11taxpayer can show the Department that a substantial change in
12the taxpayer's business has occurred which causes the taxpayer
13to anticipate that his average monthly tax liability for the
14reasonably foreseeable future will fall below the $10,000
15threshold stated above, then such taxpayer may petition the
16Department for a change in such taxpayer's reporting status. On
17and after October 1, 2000, once applicable, the requirement of
18the making of quarter monthly payments to the Department by
19taxpayers having an average monthly tax liability of $20,000 or
20more as determined in the manner provided above shall continue
21until such taxpayer's average monthly liability to the
22Department during the preceding 4 complete calendar quarters
23(excluding the month of highest liability and the month of
24lowest liability) is less than $19,000 or until such taxpayer's
25average monthly liability to the Department as computed for
26each calendar quarter of the 4 preceding complete calendar

 

 

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1quarter period is less than $20,000. However, if a taxpayer can
2show the Department that a substantial change in the taxpayer's
3business has occurred which causes the taxpayer to anticipate
4that his average monthly tax liability for the reasonably
5foreseeable future will fall below the $20,000 threshold stated
6above, then such taxpayer may petition the Department for a
7change in such taxpayer's reporting status. The Department
8shall change such taxpayer's reporting status unless it finds
9that such change is seasonal in nature and not likely to be
10long term. If any such quarter monthly payment is not paid at
11the time or in the amount required by this Section, then the
12taxpayer shall be liable for penalties and interest on the
13difference between the minimum amount due as a payment and the
14amount of such quarter monthly payment actually and timely
15paid, except insofar as the taxpayer has previously made
16payments for that month to the Department in excess of the
17minimum payments previously due as provided in this Section.
18The Department shall make reasonable rules and regulations to
19govern the quarter monthly payment amount and quarter monthly
20payment dates for taxpayers who file on other than a calendar
21monthly basis.
22    The provisions of this paragraph apply before October 1,
232001. Without regard to whether a taxpayer is required to make
24quarter monthly payments as specified above, any taxpayer who
25is required by Section 2d of this Act to collect and remit
26prepaid taxes and has collected prepaid taxes which average in

 

 

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1excess of $25,000 per month during the preceding 2 complete
2calendar quarters, shall file a return with the Department as
3required by Section 2f and shall make payments to the
4Department on or before the 7th, 15th, 22nd and last day of the
5month during which such liability is incurred. If the month
6during which such tax liability is incurred began prior to
7September 1, 1985 (the effective date of Public Act 84-221),
8each payment shall be in an amount not less than 22.5% of the
9taxpayer's actual liability under Section 2d. If the month
10during which such tax liability is incurred begins on or after
11January 1, 1986, each payment shall be in an amount equal to
1222.5% of the taxpayer's actual liability for the month or 27.5%
13of the taxpayer's liability for the same calendar month of the
14preceding calendar year. If the month during which such tax
15liability is incurred begins on or after January 1, 1987, each
16payment shall be in an amount equal to 22.5% of the taxpayer's
17actual liability for the month or 26.25% of the taxpayer's
18liability for the same calendar month of the preceding year.
19The amount of such quarter monthly payments shall be credited
20against the final tax liability of the taxpayer's return for
21that month filed under this Section or Section 2f, as the case
22may be. Once applicable, the requirement of the making of
23quarter monthly payments to the Department pursuant to this
24paragraph shall continue until such taxpayer's average monthly
25prepaid tax collections during the preceding 2 complete
26calendar quarters is $25,000 or less. If any such quarter

 

 

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1monthly payment is not paid at the time or in the amount
2required, the taxpayer shall be liable for penalties and
3interest on such difference, except insofar as the taxpayer has
4previously made payments for that month in excess of the
5minimum payments previously due.
6    The provisions of this paragraph apply on and after October
71, 2001. Without regard to whether a taxpayer is required to
8make quarter monthly payments as specified above, any taxpayer
9who is required by Section 2d of this Act to collect and remit
10prepaid taxes and has collected prepaid taxes that average in
11excess of $20,000 per month during the preceding 4 complete
12calendar quarters shall file a return with the Department as
13required by Section 2f and shall make payments to the
14Department on or before the 7th, 15th, 22nd and last day of the
15month during which the liability is incurred. Each payment
16shall be in an amount equal to 22.5% of the taxpayer's actual
17liability for the month or 25% of the taxpayer's liability for
18the same calendar month of the preceding year. The amount of
19the quarter monthly payments shall be credited against the
20final tax liability of the taxpayer's return for that month
21filed under this Section or Section 2f, as the case may be.
22Once applicable, the requirement of the making of quarter
23monthly payments to the Department pursuant to this paragraph
24shall continue until the taxpayer's average monthly prepaid tax
25collections during the preceding 4 complete calendar quarters
26(excluding the month of highest liability and the month of

 

 

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1lowest liability) is less than $19,000 or until such taxpayer's
2average monthly liability to the Department as computed for
3each calendar quarter of the 4 preceding complete calendar
4quarters is less than $20,000. If any such quarter monthly
5payment is not paid at the time or in the amount required, the
6taxpayer shall be liable for penalties and interest on such
7difference, except insofar as the taxpayer has previously made
8payments for that month in excess of the minimum payments
9previously due.
10    If any payment provided for in this Section exceeds the
11taxpayer's liabilities under this Act, the Use Tax Act, the
12Service Occupation Tax Act and the Service Use Tax Act, as
13shown on an original monthly return, the Department shall, if
14requested by the taxpayer, issue to the taxpayer a credit
15memorandum no later than 30 days after the date of payment. The
16credit evidenced by such credit memorandum may be assigned by
17the taxpayer to a similar taxpayer under this Act, the Use Tax
18Act, the Service Occupation Tax Act or the Service Use Tax Act,
19in accordance with reasonable rules and regulations to be
20prescribed by the Department. If no such request is made, the
21taxpayer may credit such excess payment against tax liability
22subsequently to be remitted to the Department under this Act,
23the Use Tax Act, the Service Occupation Tax Act or the Service
24Use Tax Act, in accordance with reasonable rules and
25regulations prescribed by the Department. If the Department
26subsequently determined that all or any part of the credit

 

 

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1taken was not actually due to the taxpayer, the taxpayer's 2.1%
2and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
3of the difference between the credit taken and that actually
4due, and that taxpayer shall be liable for penalties and
5interest on such difference.
6    If a retailer of motor fuel is entitled to a credit under
7Section 2d of this Act which exceeds the taxpayer's liability
8to the Department under this Act for the month which the
9taxpayer is filing a return, the Department shall issue the
10taxpayer a credit memorandum for the excess.
11    Beginning January 1, 1990, each month the Department shall
12pay into the Local Government Tax Fund, a special fund in the
13State treasury which is hereby created, the net revenue
14realized for the preceding month from the 1% tax imposed under
15this Act.
16    Beginning January 1, 1990, each month the Department shall
17pay into the County and Mass Transit District Fund, a special
18fund in the State treasury which is hereby created, 4% of the
19net revenue realized for the preceding month from the 6.25%
20general rate other than aviation fuel sold on or after December
211, 2019. This exception for aviation fuel only applies for so
22long as the revenue use requirements of 49 U.S.C. 47107(b) and
2349 U.S.C. 47133 are binding on the State.
24    For aviation fuel sold on or after December 1, 2019, each
25month the Department shall pay into the State Aviation Program
26Fund 4% of the net revenue realized for the preceding month

 

 

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1from the 6.25% general rate on the selling price of aviation
2fuel, less an amount estimated by the Department to be required
3for refunds of the 4% portion of the tax on aviation fuel under
4this Act, which amount shall be deposited into the Aviation
5fuel Sales Tax Refund Fund. The Department shall only pay
6moneys into the State Aviation Program Fund and the Aviation
7Fuel Sales Tax Refund Fund under this Act for so long as the
8revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
947133 are binding on the State.
10    Beginning August 1, 2000, each month the Department shall
11pay into the County and Mass Transit District Fund 20% of the
12net revenue realized for the preceding month from the 1.25%
13rate on the selling price of motor fuel and gasohol. Beginning
14September 1, 2010, each month the Department shall pay into the
15County and Mass Transit District Fund 20% of the net revenue
16realized for the preceding month from the 1.25% rate on the
17selling price of sales tax holiday items.
18    Beginning January 1, 1990, each month the Department shall
19pay into the Local Government Tax Fund 16% of the net revenue
20realized for the preceding month from the 6.25% general rate on
21the selling price of tangible personal property other than
22aviation fuel sold on or after December 1, 2019. This exception
23for aviation fuel only applies for so long as the revenue use
24requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
25binding on the State.
26    For aviation fuel sold on or after December 1, 2019, each

 

 

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1month the Department shall pay into the State Aviation Program
2Fund 16% of the net revenue realized for the preceding month
3from the 6.25% general rate on the selling price of aviation
4fuel, less an amount estimated by the Department to be required
5for refunds of the 16% portion of the tax on aviation fuel
6under this Act, which amount shall be deposited into the
7Aviation fuel Sales Tax Refund Fund. The Department shall only
8pay moneys into the State Aviation Program Fund and the
9Aviation Fuel Sales Tax Refund Fund under this Act for so long
10as the revenue use requirements of 49 U.S.C. 47107(b) and 49
11U.S.C. 47133 are binding on the State.
12    Beginning August 1, 2000, each month the Department shall
13pay into the Local Government Tax Fund 80% of the net revenue
14realized for the preceding month from the 1.25% rate on the
15selling price of motor fuel and gasohol. Beginning September 1,
162010, each month the Department shall pay into the Local
17Government Tax Fund 80% of the net revenue realized for the
18preceding month from the 1.25% rate on the selling price of
19sales tax holiday items.
20    Beginning October 1, 2009, each month the Department shall
21pay into the Capital Projects Fund an amount that is equal to
22an amount estimated by the Department to represent 80% of the
23net revenue realized for the preceding month from the sale of
24candy, grooming and hygiene products, and soft drinks that had
25been taxed at a rate of 1% prior to September 1, 2009 but that
26are now taxed at 6.25%.

 

 

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1    Beginning July 1, 2011, each month the Department shall pay
2into the Clean Air Act Permit Fund 80% of the net revenue
3realized for the preceding month from the 6.25% general rate on
4the selling price of sorbents used in Illinois in the process
5of sorbent injection as used to comply with the Environmental
6Protection Act or the federal Clean Air Act, but the total
7payment into the Clean Air Act Permit Fund under this Act and
8the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
9    Beginning July 1, 2013, each month the Department shall pay
10into the Underground Storage Tank Fund from the proceeds
11collected under this Act, the Use Tax Act, the Service Use Tax
12Act, and the Service Occupation Tax Act an amount equal to the
13average monthly deficit in the Underground Storage Tank Fund
14during the prior year, as certified annually by the Illinois
15Environmental Protection Agency, but the total payment into the
16Underground Storage Tank Fund under this Act, the Use Tax Act,
17the Service Use Tax Act, and the Service Occupation Tax Act
18shall not exceed $18,000,000 in any State fiscal year. As used
19in this paragraph, the "average monthly deficit" shall be equal
20to the difference between the average monthly claims for
21payment by the fund and the average monthly revenues deposited
22into the fund, excluding payments made pursuant to this
23paragraph.
24    Beginning July 1, 2015, of the remainder of the moneys
25received by the Department under the Use Tax Act, the Service
26Use Tax Act, the Service Occupation Tax Act, and this Act, each

 

 

HB2682- 110 -LRB101 09562 HLH 54660 b

1month the Department shall deposit $500,000 into the State
2Crime Laboratory Fund.
3    Of the remainder of the moneys received by the Department
4pursuant to this Act, (a) 1.75% thereof shall be paid into the
5Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
6and after July 1, 1989, 3.8% thereof shall be paid into the
7Build Illinois Fund; provided, however, that if in any fiscal
8year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
9may be, of the moneys received by the Department and required
10to be paid into the Build Illinois Fund pursuant to this Act,
11Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
12Act, and Section 9 of the Service Occupation Tax Act, such Acts
13being hereinafter called the "Tax Acts" and such aggregate of
142.2% or 3.8%, as the case may be, of moneys being hereinafter
15called the "Tax Act Amount", and (2) the amount transferred to
16the Build Illinois Fund from the State and Local Sales Tax
17Reform Fund shall be less than the Annual Specified Amount (as
18hereinafter defined), an amount equal to the difference shall
19be immediately paid into the Build Illinois Fund from other
20moneys received by the Department pursuant to the Tax Acts; the
21"Annual Specified Amount" means the amounts specified below for
22fiscal years 1986 through 1993:
23Fiscal YearAnnual Specified Amount
241986$54,800,000
251987$76,650,000
261988$80,480,000

 

 

HB2682- 111 -LRB101 09562 HLH 54660 b

11989$88,510,000
21990$115,330,000
31991$145,470,000
41992$182,730,000
51993$206,520,000;
6and means the Certified Annual Debt Service Requirement (as
7defined in Section 13 of the Build Illinois Bond Act) or the
8Tax Act Amount, whichever is greater, for fiscal year 1994 and
9each fiscal year thereafter; and further provided, that if on
10the last business day of any month the sum of (1) the Tax Act
11Amount required to be deposited into the Build Illinois Bond
12Account in the Build Illinois Fund during such month and (2)
13the amount transferred to the Build Illinois Fund from the
14State and Local Sales Tax Reform Fund shall have been less than
151/12 of the Annual Specified Amount, an amount equal to the
16difference shall be immediately paid into the Build Illinois
17Fund from other moneys received by the Department pursuant to
18the Tax Acts; and, further provided, that in no event shall the
19payments required under the preceding proviso result in
20aggregate payments into the Build Illinois Fund pursuant to
21this clause (b) for any fiscal year in excess of the greater of
22(i) the Tax Act Amount or (ii) the Annual Specified Amount for
23such fiscal year. The amounts payable into the Build Illinois
24Fund under clause (b) of the first sentence in this paragraph
25shall be payable only until such time as the aggregate amount
26on deposit under each trust indenture securing Bonds issued and

 

 

HB2682- 112 -LRB101 09562 HLH 54660 b

1outstanding pursuant to the Build Illinois Bond Act is
2sufficient, taking into account any future investment income,
3to fully provide, in accordance with such indenture, for the
4defeasance of or the payment of the principal of, premium, if
5any, and interest on the Bonds secured by such indenture and on
6any Bonds expected to be issued thereafter and all fees and
7costs payable with respect thereto, all as certified by the
8Director of the Bureau of the Budget (now Governor's Office of
9Management and Budget). If on the last business day of any
10month in which Bonds are outstanding pursuant to the Build
11Illinois Bond Act, the aggregate of moneys deposited in the
12Build Illinois Bond Account in the Build Illinois Fund in such
13month shall be less than the amount required to be transferred
14in such month from the Build Illinois Bond Account to the Build
15Illinois Bond Retirement and Interest Fund pursuant to Section
1613 of the Build Illinois Bond Act, an amount equal to such
17deficiency shall be immediately paid from other moneys received
18by the Department pursuant to the Tax Acts to the Build
19Illinois Fund; provided, however, that any amounts paid to the
20Build Illinois Fund in any fiscal year pursuant to this
21sentence shall be deemed to constitute payments pursuant to
22clause (b) of the first sentence of this paragraph and shall
23reduce the amount otherwise payable for such fiscal year
24pursuant to that clause (b). The moneys received by the
25Department pursuant to this Act and required to be deposited
26into the Build Illinois Fund are subject to the pledge, claim

 

 

HB2682- 113 -LRB101 09562 HLH 54660 b

1and charge set forth in Section 12 of the Build Illinois Bond
2Act.
3    Subject to payment of amounts into the Build Illinois Fund
4as provided in the preceding paragraph or in any amendment
5thereto hereafter enacted, the following specified monthly
6installment of the amount requested in the certificate of the
7Chairman of the Metropolitan Pier and Exposition Authority
8provided under Section 8.25f of the State Finance Act, but not
9in excess of sums designated as "Total Deposit", shall be
10deposited in the aggregate from collections under Section 9 of
11the Use Tax Act, Section 9 of the Service Use Tax Act, Section
129 of the Service Occupation Tax Act, and Section 3 of the
13Retailers' Occupation Tax Act into the McCormick Place
14Expansion Project Fund in the specified fiscal years.
15Fiscal YearTotal Deposit
161993         $0
171994 53,000,000
181995 58,000,000
191996 61,000,000
201997 64,000,000
211998 68,000,000
221999 71,000,000
232000 75,000,000
242001 80,000,000
252002 93,000,000

 

 

HB2682- 114 -LRB101 09562 HLH 54660 b

12003 99,000,000
22004103,000,000
32005108,000,000
42006113,000,000
52007119,000,000
62008126,000,000
72009132,000,000
82010139,000,000
92011146,000,000
102012153,000,000
112013161,000,000
122014170,000,000
132015179,000,000
142016189,000,000
152017199,000,000
162018210,000,000
172019221,000,000
182020233,000,000
192021246,000,000
202022260,000,000
212023275,000,000
222024 275,000,000
232025 275,000,000
242026 279,000,000
252027 292,000,000
262028 307,000,000

 

 

HB2682- 115 -LRB101 09562 HLH 54660 b

12029 322,000,000
22030 338,000,000
32031 350,000,000
42032 350,000,000
5and
6each fiscal year
7thereafter that bonds
8are outstanding under
9Section 13.2 of the
10Metropolitan Pier and
11Exposition Authority Act,
12but not after fiscal year 2060.
13    Beginning July 20, 1993 and in each month of each fiscal
14year thereafter, one-eighth of the amount requested in the
15certificate of the Chairman of the Metropolitan Pier and
16Exposition Authority for that fiscal year, less the amount
17deposited into the McCormick Place Expansion Project Fund by
18the State Treasurer in the respective month under subsection
19(g) of Section 13 of the Metropolitan Pier and Exposition
20Authority Act, plus cumulative deficiencies in the deposits
21required under this Section for previous months and years,
22shall be deposited into the McCormick Place Expansion Project
23Fund, until the full amount requested for the fiscal year, but
24not in excess of the amount specified above as "Total Deposit",
25has been deposited.
26    Subject to payment of amounts into the Capital Projects

 

 

HB2682- 116 -LRB101 09562 HLH 54660 b

1Fund, the Clean Air Act (CAA) Permit Fund, the Build Illinois
2Fund, and the McCormick Place Expansion Project Fund pursuant
3to the preceding paragraphs or in any amendments thereto
4hereafter enacted, the Department shall each month deposit into
5the Aviation Fuel Sales Tax Refund Fund an amount estimated by
6the Department to be required for refunds of the 80% portion of
7the tax on aviation fuel under this Act.
8    Subject to payment of amounts into the Build Illinois Fund
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, beginning July 1, 1993 and ending on September 30,
122013, the Department shall each month pay into the Illinois Tax
13Increment Fund 0.27% of 80% of the net revenue realized for the
14preceding month from the 6.25% general rate on the selling
15price of tangible personal property.
16    Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning with the receipt of the first report of
20taxes paid by an eligible business and continuing for a 25-year
21period, the Department shall each month pay into the Energy
22Infrastructure Fund 80% of the net revenue realized from the
236.25% general rate on the selling price of Illinois-mined coal
24that was sold to an eligible business. For purposes of this
25paragraph, the term "eligible business" means a new electric
26generating facility certified pursuant to Section 605-332 of

 

 

HB2682- 117 -LRB101 09562 HLH 54660 b

1the Department of Commerce and Economic Opportunity Law of the
2Civil Administrative Code of Illinois.
3    Subject to payment of amounts into the Build Illinois Fund,
4the McCormick Place Expansion Project Fund, the Illinois Tax
5Increment Fund, and the Energy Infrastructure Fund pursuant to
6the preceding paragraphs or in any amendments to this Section
7hereafter enacted, beginning on the first day of the first
8calendar month to occur on or after August 26, 2014 (the
9effective date of Public Act 98-1098), each month, from the
10collections made under Section 9 of the Use Tax Act, Section 9
11of the Service Use Tax Act, Section 9 of the Service Occupation
12Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
13the Department shall pay into the Tax Compliance and
14Administration Fund, to be used, subject to appropriation, to
15fund additional auditors and compliance personnel at the
16Department of Revenue, an amount equal to 1/12 of 5% of 80% of
17the cash receipts collected during the preceding fiscal year by
18the Audit Bureau of the Department under the Use Tax Act, the
19Service Use Tax Act, the Service Occupation Tax Act, the
20Retailers' Occupation Tax Act, and associated local occupation
21and use taxes administered by the Department (except the amount
22collected on aviation fuel sold on or after December 1, 2019).
23    Subject to payments of amounts into the Build Illinois
24Fund, the McCormick Place Expansion Project Fund, the Illinois
25Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
26Compliance and Administration Fund as provided in this Section,

 

 

HB2682- 118 -LRB101 09562 HLH 54660 b

1beginning on July 1, 2018 the Department shall pay each month
2into the Downstate Public Transportation Fund the moneys
3required to be so paid under Section 2-3 of the Downstate
4Public Transportation Act.
5    Of the remainder of the moneys received by the Department
6pursuant to this Act, 75% thereof shall be paid into the State
7Treasury and 25% shall be reserved in a special account and
8used only for the transfer to the Common School Fund as part of
9the monthly transfer from the General Revenue Fund in
10accordance with Section 8a of the State Finance Act.
11    The Department may, upon separate written notice to a
12taxpayer, require the taxpayer to prepare and file with the
13Department on a form prescribed by the Department within not
14less than 60 days after receipt of the notice an annual
15information return for the tax year specified in the notice.
16Such annual return to the Department shall include a statement
17of gross receipts as shown by the retailer's last Federal
18income tax return. If the total receipts of the business as
19reported in the Federal income tax return do not agree with the
20gross receipts reported to the Department of Revenue for the
21same period, the retailer shall attach to his annual return a
22schedule showing a reconciliation of the 2 amounts and the
23reasons for the difference. The retailer's annual return to the
24Department shall also disclose the cost of goods sold by the
25retailer during the year covered by such return, opening and
26closing inventories of such goods for such year, costs of goods

 

 

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1used from stock or taken from stock and given away by the
2retailer during such year, payroll information of the
3retailer's business during such year and any additional
4reasonable information which the Department deems would be
5helpful in determining the accuracy of the monthly, quarterly
6or annual returns filed by such retailer as provided for in
7this Section.
8    If the annual information return required by this Section
9is not filed when and as required, the taxpayer shall be liable
10as follows:
11        (i) Until January 1, 1994, the taxpayer shall be liable
12    for a penalty equal to 1/6 of 1% of the tax due from such
13    taxpayer under this Act during the period to be covered by
14    the annual return for each month or fraction of a month
15    until such return is filed as required, the penalty to be
16    assessed and collected in the same manner as any other
17    penalty provided for in this Act.
18        (ii) On and after January 1, 1994, the taxpayer shall
19    be liable for a penalty as described in Section 3-4 of the
20    Uniform Penalty and Interest Act.
21    The chief executive officer, proprietor, owner or highest
22ranking manager shall sign the annual return to certify the
23accuracy of the information contained therein. Any person who
24willfully signs the annual return containing false or
25inaccurate information shall be guilty of perjury and punished
26accordingly. The annual return form prescribed by the

 

 

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1Department shall include a warning that the person signing the
2return may be liable for perjury.
3    The provisions of this Section concerning the filing of an
4annual information return do not apply to a retailer who is not
5required to file an income tax return with the United States
6Government.
7    As soon as possible after the first day of each month, upon
8certification of the Department of Revenue, the Comptroller
9shall order transferred and the Treasurer shall transfer from
10the General Revenue Fund to the Motor Fuel Tax Fund an amount
11equal to 1.7% of 80% of the net revenue realized under this Act
12for the second preceding month. Beginning April 1, 2000, this
13transfer is no longer required and shall not be made.
14    Net revenue realized for a month shall be the revenue
15collected by the State pursuant to this Act, less the amount
16paid out during that month as refunds to taxpayers for
17overpayment of liability.
18    For greater simplicity of administration, manufacturers,
19importers and wholesalers whose products are sold at retail in
20Illinois by numerous retailers, and who wish to do so, may
21assume the responsibility for accounting and paying to the
22Department all tax accruing under this Act with respect to such
23sales, if the retailers who are affected do not make written
24objection to the Department to this arrangement.
25    Any person who promotes, organizes, provides retail
26selling space for concessionaires or other types of sellers at

 

 

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1the Illinois State Fair, DuQuoin State Fair, county fairs,
2local fairs, art shows, flea markets and similar exhibitions or
3events, including any transient merchant as defined by Section
42 of the Transient Merchant Act of 1987, is required to file a
5report with the Department providing the name of the merchant's
6business, the name of the person or persons engaged in
7merchant's business, the permanent address and Illinois
8Retailers Occupation Tax Registration Number of the merchant,
9the dates and location of the event and other reasonable
10information that the Department may require. The report must be
11filed not later than the 20th day of the month next following
12the month during which the event with retail sales was held.
13Any person who fails to file a report required by this Section
14commits a business offense and is subject to a fine not to
15exceed $250.
16    Any person engaged in the business of selling tangible
17personal property at retail as a concessionaire or other type
18of seller at the Illinois State Fair, county fairs, art shows,
19flea markets and similar exhibitions or events, or any
20transient merchants, as defined by Section 2 of the Transient
21Merchant Act of 1987, may be required to make a daily report of
22the amount of such sales to the Department and to make a daily
23payment of the full amount of tax due. The Department shall
24impose this requirement when it finds that there is a
25significant risk of loss of revenue to the State at such an
26exhibition or event. Such a finding shall be based on evidence

 

 

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1that a substantial number of concessionaires or other sellers
2who are not residents of Illinois will be engaging in the
3business of selling tangible personal property at retail at the
4exhibition or event, or other evidence of a significant risk of
5loss of revenue to the State. The Department shall notify
6concessionaires and other sellers affected by the imposition of
7this requirement. In the absence of notification by the
8Department, the concessionaires and other sellers shall file
9their returns as otherwise required in this Section.
10(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
1199-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.
127-1-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19.)
 
13    (35 ILCS 120/6)  (from Ch. 120, par. 445)
14    Sec. 6. Credit memorandum or refund. If it appears, after
15claim therefor filed with the Department, that an amount of tax
16or penalty or interest has been paid which was not due under
17this Act, whether as the result of a mistake of fact or an
18error of law, except as hereinafter provided, then the
19Department shall issue a credit memorandum or refund to the
20person who made the erroneous payment or, if that person died
21or became a person under legal disability, to his or her legal
22representative, as such. For purposes of this Section, the tax
23is deemed to be erroneously paid by a retailer when the
24manufacturer of a motor vehicle sold by the retailer accepts
25the return of that automobile and refunds to the purchaser the

 

 

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1selling price of that vehicle as provided in the New Vehicle
2Buyer Protection Act. When a motor vehicle is returned for a
3refund of the purchase price under the New Vehicle Buyer
4Protection Act, the Department shall issue a credit memorandum
5or a refund for the amount of tax paid by the retailer under
6this Act attributable to the initial sale of that vehicle.
7Claims submitted by the retailer are subject to the same
8restrictions and procedures provided for in this Act. If it is
9determined that the Department should issue a credit memorandum
10or refund, the Department may first apply the amount thereof
11against any tax or penalty or interest due or to become due
12under this Act or under the Use Tax Act, the Service Occupation
13Tax Act, the Service Use Tax Act, any local occupation or use
14tax administered by the Department, Section 4 of the Water
15Commission Act of 1985, subsections (b), (c) and (d) of Section
165.01 of the Local Mass Transit District Act, or subsections
17(e), (f) and (g) of Section 4.03 of the Regional Transportation
18Authority Act, from the person who made the erroneous payment.
19If no tax or penalty or interest is due and no proceeding is
20pending to determine whether such person is indebted to the
21Department for tax or penalty or interest, the credit
22memorandum or refund shall be issued to the claimant; or (in
23the case of a credit memorandum) the credit memorandum may be
24assigned and set over by the lawful holder thereof, subject to
25reasonable rules of the Department, to any other person who is
26subject to this Act, the Use Tax Act, the Service Occupation

 

 

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1Tax Act, the Service Use Tax Act, any local occupation or use
2tax administered by the Department, Section 4 of the Water
3Commission Act of 1985, subsections (b), (c) and (d) of Section
45.01 of the Local Mass Transit District Act, or subsections
5(e), (f) and (g) of Section 4.03 of the Regional Transportation
6Authority Act, and the amount thereof applied by the Department
7against any tax or penalty or interest due or to become due
8under this Act or under the Use Tax Act, the Service Occupation
9Tax Act, the Service Use Tax Act, any local occupation or use
10tax administered by the Department, Section 4 of the Water
11Commission Act of 1985, subsections (b), (c) and (d) of Section
125.01 of the Local Mass Transit District Act, or subsections
13(e), (f) and (g) of Section 4.03 of the Regional Transportation
14Authority Act, from such assignee. However, as to any claim for
15credit or refund filed with the Department on and after each
16January 1 and July 1 no amount of tax or penalty or interest
17erroneously paid (either in total or partial liquidation of a
18tax or penalty or amount of interest under this Act) more than
193 years prior to such January 1 and July 1, respectively, shall
20be credited or refunded, except that if both the Department and
21the taxpayer have agreed to an extension of time to issue a
22notice of tax liability as provided in Section 4 of this Act,
23such claim may be filed at any time prior to the expiration of
24the period agreed upon.
25    No claim may be allowed for any amount paid to the
26Department, whether paid voluntarily or involuntarily, if paid

 

 

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1in total or partial liquidation of an assessment which had
2become final before the claim for credit or refund to recover
3the amount so paid is filed with the Department, or if paid in
4total or partial liquidation of a judgment or order of court.
5No credit may be allowed or refund made for any amount paid by
6or collected from any claimant unless it appears (a) that the
7claimant bore the burden of such amount and has not been
8relieved thereof nor reimbursed therefor and has not shifted
9such burden directly or indirectly through inclusion of such
10amount in the price of the tangible personal property sold by
11him or her or in any manner whatsoever; and that no
12understanding or agreement, written or oral, exists whereby he
13or she or his or her legal representative may be relieved of
14the burden of such amount, be reimbursed therefor or may shift
15the burden thereof; or (b) that he or she or his or her legal
16representative has repaid unconditionally such amount to his or
17her vendee (1) who bore the burden thereof and has not shifted
18such burden directly or indirectly, in any manner whatsoever;
19(2) who, if he or she has shifted such burden, has repaid
20unconditionally such amount to his own vendee; and (3) who is
21not entitled to receive any reimbursement therefor from any
22other source than from his or her vendor, nor to be relieved of
23such burden in any manner whatsoever. No credit may be allowed
24or refund made for any amount paid by or collected from any
25claimant unless it appears that the claimant has
26unconditionally repaid, to the purchaser, any amount collected

 

 

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1from the purchaser and retained by the claimant with respect to
2the same transaction under the Use Tax Act.
3    Any credit or refund that is allowed under this Section
4shall bear interest at the rate and in the manner specified in
5the Uniform Penalty and Interest Act.
6    In case the Department determines that the claimant is
7entitled to a refund, such refund shall be made only from the
8Aviation Fuel Sales Tax Refund Fund or from such appropriation
9as may be available for that purpose, as appropriate. If it
10appears unlikely that the amount available appropriated would
11permit everyone having a claim allowed during the period
12covered by such appropriation or from the Aviation Fuel Sales
13Tax Refund Fund, as appropriate, to elect to receive a cash
14refund, the Department, by rule or regulation, shall provide
15for the payment of refunds in hardship cases and shall define
16what types of cases qualify as hardship cases.
17    If a retailer who has failed to pay retailers' occupation
18tax on gross receipts from retail sales is required by the
19Department to pay such tax, such retailer, without filing any
20formal claim with the Department, shall be allowed to take
21credit against such retailers' occupation tax liability to the
22extent, if any, to which such retailer has paid an amount
23equivalent to retailers' occupation tax or has paid use tax in
24error to his or her vendor or vendors of the same tangible
25personal property which such retailer bought for resale and did
26not first use before selling it, and no penalty or interest

 

 

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1shall be charged to such retailer on the amount of such credit.
2However, when such credit is allowed to the retailer by the
3Department, the vendor is precluded from refunding any of that
4tax to the retailer and filing a claim for credit or refund
5with respect thereto with the Department. The provisions of
6this amendatory Act shall be applied retroactively, regardless
7of the date of the transaction.
8(Source: P.A. 91-901, eff. 1-1-01.)
 
9    (35 ILCS 120/11)  (from Ch. 120, par. 450)
10    Sec. 11. All information received by the Department from
11returns filed under this Act, or from any investigation
12conducted under this Act, shall be confidential, except for
13official purposes, and any person who divulges any such
14information in any manner, except in accordance with a proper
15judicial order or as otherwise provided by law, shall be guilty
16of a Class B misdemeanor with a fine not to exceed $7,500.
17    Nothing in this Act prevents the Director of Revenue from
18publishing or making available to the public the names and
19addresses of persons filing returns under this Act, or
20reasonable statistics concerning the operation of the tax by
21grouping the contents of returns so the information in any
22individual return is not disclosed.
23    Nothing in this Act prevents the Director of Revenue from
24divulging to the United States Government or the government of
25any other state, or any officer or agency thereof, for

 

 

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1exclusively official purposes, information received by the
2Department in administering this Act, provided that such other
3governmental agency agrees to divulge requested tax
4information to the Department.
5    The Department's furnishing of information derived from a
6taxpayer's return or from an investigation conducted under this
7Act to the surety on a taxpayer's bond that has been furnished
8to the Department under this Act, either to provide notice to
9such surety of its potential liability under the bond or, in
10order to support the Department's demand for payment from such
11surety under the bond, is an official purpose within the
12meaning of this Section.
13    The furnishing upon request of information obtained by the
14Department from returns filed under this Act or investigations
15conducted under this Act to the Illinois Liquor Control
16Commission for official use is deemed to be an official purpose
17within the meaning of this Section.
18    Notice to a surety of potential liability shall not be
19given unless the taxpayer has first been notified, not less
20than 10 days prior thereto, of the Department's intent to so
21notify the surety.
22    The furnishing upon request of the Auditor General, or his
23authorized agents, for official use, of returns filed and
24information related thereto under this Act is deemed to be an
25official purpose within the meaning of this Section.
26    Where an appeal or a protest has been filed on behalf of a

 

 

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1taxpayer, the furnishing upon request of the attorney for the
2taxpayer of returns filed by the taxpayer and information
3related thereto under this Act is deemed to be an official
4purpose within the meaning of this Section.
5    The furnishing of financial information to a municipality
6or county, upon request of the chief executive officer thereof,
7is an official purpose within the meaning of this Section,
8provided the municipality or county agrees in writing to the
9requirements of this Section. Information provided to
10municipalities and counties under this paragraph shall be
11limited to: (1) the business name; (2) the business address;
12(3) the standard classification number assigned to the
13business; (4) net revenue distributed to the requesting
14municipality or county that is directly related to the
15requesting municipality's or county's local share of the
16proceeds under the Use Tax Act, the Service Use Tax Act, the
17Service Occupation Tax Act, and the Retailers' Occupation Tax
18Act distributed from the Local Government Tax Fund, and, if
19applicable, any locally imposed retailers' occupation tax or
20service occupation tax; and (5) a listing of all businesses
21within the requesting municipality or county by account
22identification number and address. On and after July 1, 2015,
23the furnishing of financial information to municipalities and
24counties under this paragraph may be by electronic means.
25    Information so provided shall be subject to all
26confidentiality provisions of this Section. The written

 

 

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1agreement shall provide for reciprocity, limitations on
2access, disclosure, and procedures for requesting information.
3    The Department may make available to the Board of Trustees
4of any Metro East Mass Transit District information contained
5on transaction reporting returns required to be filed under
6Section 3 of this Act that report sales made within the
7boundary of the taxing authority of that Metro East Mass
8Transit District, as provided in Section 5.01 of the Local Mass
9Transit District Act. The disclosure shall be made pursuant to
10a written agreement between the Department and the Board of
11Trustees of a Metro East Mass Transit District, which is an
12official purpose within the meaning of this Section. The
13written agreement between the Department and the Board of
14Trustees of a Metro East Mass Transit District shall provide
15for reciprocity, limitations on access, disclosure, and
16procedures for requesting information. Information so provided
17shall be subject to all confidentiality provisions of this
18Section.
19    The Director may make available to any State agency,
20including the Illinois Supreme Court, which licenses persons to
21engage in any occupation, information that a person licensed by
22such agency has failed to file returns under this Act or pay
23the tax, penalty and interest shown therein, or has failed to
24pay any final assessment of tax, penalty or interest due under
25this Act. The Director may make available to any State agency,
26including the Illinois Supreme Court, information regarding

 

 

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1whether a bidder, contractor, or an affiliate of a bidder or
2contractor has failed to collect and remit Illinois Use tax on
3sales into Illinois, or any tax under this Act or pay the tax,
4penalty, and interest shown therein, or has failed to pay any
5final assessment of tax, penalty, or interest due under this
6Act, for the limited purpose of enforcing bidder and contractor
7certifications. The Director may make available to units of
8local government and school districts that require bidder and
9contractor certifications, as set forth in Sections 50-11 and
1050-12 of the Illinois Procurement Code, information regarding
11whether a bidder, contractor, or an affiliate of a bidder or
12contractor has failed to collect and remit Illinois Use tax on
13sales into Illinois, file returns under this Act, or pay the
14tax, penalty, and interest shown therein, or has failed to pay
15any final assessment of tax, penalty, or interest due under
16this Act, for the limited purpose of enforcing bidder and
17contractor certifications. For purposes of this Section, the
18term "affiliate" means any entity that (1) directly,
19indirectly, or constructively controls another entity, (2) is
20directly, indirectly, or constructively controlled by another
21entity, or (3) is subject to the control of a common entity.
22For purposes of this Section, an entity controls another entity
23if it owns, directly or individually, more than 10% of the
24voting securities of that entity. As used in this Section, the
25term "voting security" means a security that (1) confers upon
26the holder the right to vote for the election of members of the

 

 

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1board of directors or similar governing body of the business or
2(2) is convertible into, or entitles the holder to receive upon
3its exercise, a security that confers such a right to vote. A
4general partnership interest is a voting security.
5    The Director may make available to any State agency,
6including the Illinois Supreme Court, units of local
7government, and school districts, information regarding
8whether a bidder or contractor is an affiliate of a person who
9is not collecting and remitting Illinois Use taxes for the
10limited purpose of enforcing bidder and contractor
11certifications.
12    The Director may also make available to the Secretary of
13State information that a limited liability company, which has
14filed articles of organization with the Secretary of State, or
15corporation which has been issued a certificate of
16incorporation by the Secretary of State has failed to file
17returns under this Act or pay the tax, penalty and interest
18shown therein, or has failed to pay any final assessment of
19tax, penalty or interest due under this Act. An assessment is
20final when all proceedings in court for review of such
21assessment have terminated or the time for the taking thereof
22has expired without such proceedings being instituted.
23    The Director shall make available for public inspection in
24the Department's principal office and for publication, at cost,
25administrative decisions issued on or after January 1, 1995.
26These decisions are to be made available in a manner so that

 

 

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1the following taxpayer information is not disclosed:
2        (1) The names, addresses, and identification numbers
3    of the taxpayer, related entities, and employees.
4        (2) At the sole discretion of the Director, trade
5    secrets or other confidential information identified as
6    such by the taxpayer, no later than 30 days after receipt
7    of an administrative decision, by such means as the
8    Department shall provide by rule.
9    The Director shall determine the appropriate extent of the
10deletions allowed in paragraph (2). In the event the taxpayer
11does not submit deletions, the Director shall make only the
12deletions specified in paragraph (1).
13    The Director shall make available for public inspection and
14publication an administrative decision within 180 days after
15the issuance of the administrative decision. The term
16"administrative decision" has the same meaning as defined in
17Section 3-101 of Article III of the Code of Civil Procedure.
18Costs collected under this Section shall be paid into the Tax
19Compliance and Administration Fund.
20    Nothing contained in this Act shall prevent the Director
21from divulging information to any person pursuant to a request
22or authorization made by the taxpayer or by an authorized
23representative of the taxpayer.
24    The furnishing of information obtained by the Department
25from returns filed under this amendatory Act of the 101st
26General Assembly to the Department of Transportation for

 

 

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1purposes of compliance with this amendatory Act of the 101st
2General Assembly regarding aviation fuel is deemed to be an
3official purpose within the meaning of this Section.
4(Source: P.A. 98-1058, eff. 1-1-15; 99-517, eff. 6-30-16.)
 
5    Section 30. The Motor Fuel Tax Law is amended by changing
6Sections 2, 2b, and 8a as follows:
 
7    (35 ILCS 505/2)  (from Ch. 120, par. 418)
8    Sec. 2. A tax is imposed on the privilege of operating
9motor vehicles upon the public highways and recreational-type
10watercraft upon the waters of this State.
11    (a) Prior to August 1, 1989, the tax is imposed at the rate
12of 13 cents per gallon on all motor fuel used in motor vehicles
13operating on the public highways and recreational type
14watercraft operating upon the waters of this State. Beginning
15on August 1, 1989 and until January 1, 1990, the rate of the
16tax imposed in this paragraph shall be 16 cents per gallon.
17Beginning January 1, 1990, the rate of tax imposed in this
18paragraph, including the tax on compressed natural gas, shall
19be 19 cents per gallon.
20    (b) The tax on the privilege of operating motor vehicles
21which use diesel fuel, liquefied natural gas, or propane shall
22be the rate according to paragraph (a) plus an additional 2 1/2
23cents per gallon. "Diesel fuel" is defined as any product
24intended for use or offered for sale as a fuel for engines in

 

 

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1which the fuel is injected into the combustion chamber and
2ignited by pressure without electric spark.
3    (c) A tax is imposed upon the privilege of engaging in the
4business of selling motor fuel as a retailer or reseller on all
5motor fuel used in motor vehicles operating on the public
6highways and recreational type watercraft operating upon the
7waters of this State: (1) at the rate of 3 cents per gallon on
8motor fuel owned or possessed by such retailer or reseller at
912:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents per
10gallon on motor fuel owned or possessed by such retailer or
11reseller at 12:01 A.M. on January 1, 1990.
12    Retailers and resellers who are subject to this additional
13tax shall be required to inventory such motor fuel and pay this
14additional tax in a manner prescribed by the Department of
15Revenue.
16    The tax imposed in this paragraph (c) shall be in addition
17to all other taxes imposed by the State of Illinois or any unit
18of local government in this State.
19    (d) Except as provided in Section 2a, the collection of a
20tax based on gallonage of gasoline used for the propulsion of
21any aircraft is prohibited on and after October 1, 1979, and
22the collection of a tax based on gallonage of special fuel used
23for the propulsion of any aircraft is prohibited on and after
24December 1, 2019.
25    (e) The collection of a tax, based on gallonage of all
26products commonly or commercially known or sold as 1-K

 

 

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1kerosene, regardless of its classification or uses, is
2prohibited (i) on and after July 1, 1992 until December 31,
31999, except when the 1-K kerosene is either: (1) delivered
4into bulk storage facilities of a bulk user, or (2) delivered
5directly into the fuel supply tanks of motor vehicles and (ii)
6on and after January 1, 2000. Beginning on January 1, 2000, the
7collection of a tax, based on gallonage of all products
8commonly or commercially known or sold as 1-K kerosene,
9regardless of its classification or uses, is prohibited except
10when the 1-K kerosene is delivered directly into a storage tank
11that is located at a facility that has withdrawal facilities
12that are readily accessible to and are capable of dispensing
131-K kerosene into the fuel supply tanks of motor vehicles. For
14purposes of this subsection (e), a facility is considered to
15have withdrawal facilities that are not "readily accessible to
16and capable of dispensing 1-K kerosene into the fuel supply
17tanks of motor vehicles" only if the 1-K kerosene is delivered
18from: (i) a dispenser hose that is short enough so that it will
19not reach the fuel supply tank of a motor vehicle or (ii) a
20dispenser that is enclosed by a fence or other physical barrier
21so that a vehicle cannot pull alongside the dispenser to permit
22fueling.
23    Any person who sells or uses 1-K kerosene for use in motor
24vehicles upon which the tax imposed by this Law has not been
25paid shall be liable for any tax due on the sales or use of 1-K
26kerosene.

 

 

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1(Source: P.A. 100-9, eff. 7-1-17.)
 
2    (35 ILCS 505/2b)  (from Ch. 120, par. 418b)
3    Sec. 2b. Receiver's monthly return. In addition to the tax
4collection and reporting responsibilities imposed elsewhere in
5this Act, a person who is required to pay the tax imposed by
6Section 2a of this Act shall pay the tax to the Department by
7return showing all fuel purchased, acquired or received and
8sold, distributed or used during the preceding calendar month
9including losses of fuel as the result of evaporation or
10shrinkage due to temperature variations, and such other
11reasonable information as the Department may require. Losses of
12fuel as the result of evaporation or shrinkage due to
13temperature variations may not exceed 1% of the total gallons
14in storage at the beginning of the month, plus the receipts of
15gallonage during the month, minus the gallonage remaining in
16storage at the end of the month. Any loss reported that is in
17excess of this amount shall be subject to the tax imposed by
18Section 2a of this Law. On and after July 1, 2001, for each
196-month period January through June, net losses of fuel (for
20each category of fuel that is required to be reported on a
21return) as the result of evaporation or shrinkage due to
22temperature variations may not exceed 1% of the total gallons
23in storage at the beginning of each January, plus the receipts
24of gallonage each January through June, minus the gallonage
25remaining in storage at the end of each June. On and after July

 

 

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11, 2001, for each 6-month period July through December, net
2losses of fuel (for each category of fuel that is required to
3be reported on a return) as the result of evaporation or
4shrinkage due to temperature variations may not exceed 1% of
5the total gallons in storage at the beginning of each July,
6plus the receipts of gallonage each July through December,
7minus the gallonage remaining in storage at the end of each
8December. Any net loss reported that is in excess of this
9amount shall be subject to the tax imposed by Section 2a of
10this Law. For purposes of this Section, "net loss" means the
11number of gallons gained through temperature variations minus
12the number of gallons lost through temperature variations or
13evaporation for each of the respective 6-month periods.
14    The return shall be prescribed by the Department and shall
15be filed between the 1st and 20th days of each calendar month.
16The Department may, in its discretion, combine the returns
17filed under this Section, Section 5, and Section 5a of this
18Act. The return must be accompanied by appropriate
19computer-generated magnetic media supporting schedule data in
20the format required by the Department, unless, as provided by
21rule, the Department grants an exception upon petition of a
22taxpayer. If the return is filed timely, the seller shall take
23a discount of 2% through June 30, 2003 and 1.75% thereafter
24which is allowed to reimburse the seller for the expenses
25incurred in keeping records, preparing and filing returns,
26collecting and remitting the tax and supplying data to the

 

 

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1Department on request. The discount, however, shall be
2applicable only to the amount of payment which accompanies a
3return that is filed timely in accordance with this Section.The
4discount under this Section is not allowed for taxes paid on
5aviation fuel that are deposited into the State Aviation
6Program Fund under this Act.
7    Beginning on January 1, 2020, each person who is required
8to pay the tax imposed under Section 2a of this Act on aviation
9fuel sold or used in this State during the preceding calendar
10month shall, instead of reporting and paying tax on aviation
11fuel as otherwise required by this Section, report and pay such
12tax on a separate aviation fuel tax return, on or before the
13twentieth day of each calendar month. The requirements related
14to the return shall be as otherwise provided in this Section.
15Notwithstanding any other provisions of this Act to the
16contrary, a person required to pay the tax imposed by Section
172a of this Act on aviation fuel shall file all aviation fuel
18tax returns and shall make all aviation fuel tax payments by
19electronic means in the manner and form required by the
20Department. For purposes of this paragraph, "aviation fuel"
21means a product that is intended for use or offered for sale as
22fuel for an aircraft.
23    If any payment provided for in this Section exceeds the
24receiver's liabilities under this Act, as shown on an original
25return, the Department may authorize the receiver to credit
26such excess payment against liability subsequently to be

 

 

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1remitted to the Department under this Act, in accordance with
2reasonable rules adopted by the Department. If the Department
3subsequently determines that all or any part of the credit
4taken was not actually due to the receiver, the receiver's
5discount shall be reduced by an amount equal to the difference
6between the discount as applied to the credit taken and that
7actually due, and that receiver shall be liable for penalties
8and interest on such difference.
9(Source: P.A. 100-1171, eff. 1-4-19.)
 
10    (35 ILCS 505/8a)  (from Ch. 120, par. 424a)
11    Sec. 8a. All money received by the Department under Section
122a of this Act, except money received from taxes on aviation
13fuel sold or used on or after December 1, 2019, shall be
14deposited in the Underground Storage Tank Fund created by
15Section 57.11 of the Environmental Protection Act, as now or
16hereafter amended. All money received by the Department under
17Section 2a of this Act for aviation fuel sold or used on or
18after December 1, 2019, shall be deposited into the State
19Aviation Program Fund. This exception for aviation fuel only
20applies for so long as the revenue use requirements of 49
21U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
22For purposes of this section, "aviation fuel" means a product
23that is intended for use or offered for sale as fuel for an
24aircraft.
25(Source: P.A. 88-496.)
 

 

 

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1    Section 35. The Innovation Development and Economy Act is
2amended by changing Sections 10 and 31 as follows:
 
3    (50 ILCS 470/10)
4    Sec. 10. Definitions. As used in this Act, the following
5words and phrases shall have the following meanings unless a
6different meaning clearly appears from the context:
7    "Base year" means the calendar year immediately prior to
8the calendar year in which the STAR bond district is
9established.
10    "Commence work" means the manifest commencement of actual
11operations on the development site, such as, erecting a
12building, general on-site and off-site grading and utility
13installations, commencing design and construction
14documentation, ordering lead-time materials, excavating the
15ground to lay a foundation or a basement, or work of like
16description which a reasonable person would recognize as being
17done with the intention and purpose to continue work until the
18project is completed.
19    "County" means the county in which a proposed STAR bond
20district is located.
21    "De minimis" means an amount less than 15% of the land area
22within a STAR bond district.
23    "Department of Revenue" means the Department of Revenue of
24the State of Illinois.

 

 

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1    "Destination user" means an owner, operator, licensee,
2co-developer, subdeveloper, or tenant (i) that operates a
3business within a STAR bond district that is a retail store
4having at least 150,000 square feet of sales floor area; (ii)
5that at the time of opening does not have another Illinois
6location within a 70 mile radius; (iii) that has an annual
7average of not less than 30% of customers who travel from at
8least 75 miles away or from out-of-state, as demonstrated by
9data from a comparable existing store or stores, or, if there
10is no comparable existing store, as demonstrated by an economic
11analysis that shows that the proposed retailer will have an
12annual average of not less than 30% of customers who travel
13from at least 75 miles away or from out-of-state; and (iv) that
14makes an initial capital investment, including project costs
15and other direct costs, of not less than $30,000,000 for such
16retail store.
17    "Destination hotel" means a hotel (as that term is defined
18in Section 2 of the Hotel Operators' Occupation Tax Act)
19complex having at least 150 guest rooms and which also includes
20a venue for entertainment attractions, rides, or other
21activities oriented toward the entertainment and amusement of
22its guests and other patrons.
23    "Developer" means any individual, corporation, trust,
24estate, partnership, limited liability partnership, limited
25liability company, or other entity. The term does not include a
26not-for-profit entity, political subdivision, or other agency

 

 

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1or instrumentality of the State.
2    "Director" means the Director of Revenue, who shall consult
3with the Director of Commerce and Economic Opportunity in any
4approvals or decisions required by the Director under this Act.
5    "Economic impact study" means a study conducted by an
6independent economist to project the financial benefit of the
7proposed STAR bond project to the local, regional, and State
8economies, consider the proposed adverse impacts on similar
9projects and businesses, as well as municipalities within the
10projected market area, and draw conclusions about the net
11effect of the proposed STAR bond project on the local,
12regional, and State economies. A copy of the economic impact
13study shall be provided to the Director for review.
14    "Eligible area" means any improved or vacant area that (i)
15is contiguous and is not, in the aggregate, less than 250 acres
16nor more than 500 acres which must include only parcels of real
17property directly and substantially benefited by the proposed
18STAR bond district plan, (ii) is adjacent to a federal
19interstate highway, (iii) is within one mile of 2 State
20highways, (iv) is within one mile of an entertainment user, or
21a major or minor league sports stadium or other similar
22entertainment venue that had an initial capital investment of
23at least $20,000,000, and (v) includes land that was previously
24surface or strip mined. The area may be bisected by streets,
25highways, roads, alleys, railways, bike paths, streams,
26rivers, and other waterways and still be deemed contiguous. In

 

 

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1addition, in order to constitute an eligible area one of the
2following requirements must be satisfied and all of which are
3subject to the review and approval of the Director as provided
4in subsection (d) of Section 15:
5        (a) the governing body of the political subdivision
6    shall have determined that the area meets the requirements
7    of a "blighted area" as defined under the Tax Increment
8    Allocation Redevelopment Act; or
9        (b) the governing body of the political subdivision
10    shall have determined that the area is a blighted area as
11    determined under the provisions of Section 11-74.3-5 of the
12    Illinois Municipal Code; or
13        (c) the governing body of the political subdivision
14    shall make the following findings:
15            (i) that the vacant portions of the area have
16        remained vacant for at least one year, or that any
17        building located on a vacant portion of the property
18        was demolished within the last year and that the
19        building would have qualified under item (ii) of this
20        subsection;
21            (ii) if portions of the area are currently
22        developed, that the use, condition, and character of
23        the buildings on the property are not consistent with
24        the purposes set forth in Section 5;
25            (iii) that the STAR bond district is expected to
26        create or retain job opportunities within the

 

 

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1        political subdivision;
2            (iv) that the STAR bond district will serve to
3        further the development of adjacent areas;
4            (v) that without the availability of STAR bonds,
5        the projects described in the STAR bond district plan
6        would not be possible;
7            (vi) that the master developer meets high
8        standards of creditworthiness and financial strength
9        as demonstrated by one or more of the following: (i)
10        corporate debenture ratings of BBB or higher by
11        Standard & Poor's Corporation or Baa or higher by
12        Moody's Investors Service, Inc.; (ii) a letter from a
13        financial institution with assets of $10,000,000 or
14        more attesting to the financial strength of the master
15        developer; or (iii) specific evidence of equity
16        financing for not less than 10% of the estimated total
17        STAR bond project costs;
18            (vii) that the STAR bond district will strengthen
19        the commercial sector of the political subdivision;
20            (viii) that the STAR bond district will enhance the
21        tax base of the political subdivision; and
22            (ix) that the formation of a STAR bond district is
23        in the best interest of the political subdivision.
24    "Entertainment user" means an owner, operator, licensee,
25co-developer, subdeveloper, or tenant that operates a business
26within a STAR bond district that has a primary use of providing

 

 

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1a venue for entertainment attractions, rides, or other
2activities oriented toward the entertainment and amusement of
3its patrons, occupies at least 20 acres of land in the STAR
4bond district, and makes an initial capital investment,
5including project costs and other direct and indirect costs, of
6not less than $25,000,000 for that venue.
7    "Feasibility study" means a feasibility study as defined in
8subsection (b) of Section 20.
9    "Infrastructure" means the public improvements and private
10improvements that serve the public purposes set forth in
11Section 5 of this Act and that benefit the STAR bond district
12or any STAR bond projects, including, but not limited to,
13streets, drives and driveways, traffic and directional signs
14and signals, parking lots and parking facilities,
15interchanges, highways, sidewalks, bridges, underpasses and
16overpasses, bike and walking trails, sanitary storm sewers and
17lift stations, drainage conduits, channels, levees, canals,
18storm water detention and retention facilities, utilities and
19utility connections, water mains and extensions, and street and
20parking lot lighting and connections.
21    "Local sales taxes" means any locally imposed taxes
22received by a municipality, county, or other local governmental
23entity arising from sales by retailers and servicemen within a
24STAR bond district, including business district sales taxes and
25STAR bond occupation taxes, and that portion of the net revenue
26realized under the Retailers' Occupation Tax Act, the Use Tax

 

 

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1Act, the Service Use Tax Act, and the Service Occupation Tax
2Act from transactions at places of business located within a
3STAR bond district that is deposited into the Local Government
4Tax Fund and the County and Mass Transit District Fund. For the
5purpose of this Act, "local sales taxes" does not include (i)
6any taxes authorized pursuant to the Local Mass Transit
7District Act or the Metro-East Park and Recreation District Act
8for so long as the applicable taxing district does not impose a
9tax on real property, (ii) county school facility occupation
10taxes imposed pursuant to Section 5-1006.7 of the Counties
11Code, or (iii) any taxes authorized under the Flood Prevention
12District Act.
13    "Local sales tax increment" means, except as otherwise
14provided in this Section, with respect to local sales taxes
15administered by the Illinois Department of Revenue, (i) all of
16the local sales tax paid by destination users, destination
17hotels, and entertainment users that is in excess of the local
18sales tax paid by destination users, destination hotels, and
19entertainment users for the same month in the base year, as
20determined by the Illinois Department of Revenue, (ii) in the
21case of a municipality forming a STAR bond district that is
22wholly within the corporate boundaries of the municipality and
23in the case of a municipality and county forming a STAR bond
24district that is only partially within such municipality, that
25portion of the local sales tax paid by taxpayers that are not
26destination users, destination hotels, or entertainment users

 

 

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1that is in excess of the local sales tax paid by taxpayers that
2are not destination users, destination hotels, or
3entertainment users for the same month in the base year, as
4determined by the Illinois Department of Revenue, and (iii) in
5the case of a county in which a STAR bond district is formed
6that is wholly within a municipality, that portion of the local
7sales tax paid by taxpayers that are not destination users,
8destination hotels, or entertainment users that is in excess of
9the local sales tax paid by taxpayers that are not destination
10users, destination hotels, or entertainment users for the same
11month in the base year, as determined by the Illinois
12Department of Revenue, but only if the corporate authorities of
13the county adopts an ordinance, and files a copy with the
14Department within the same time frames as required for STAR
15bond occupation taxes under Section 31, that designates the
16taxes referenced in this clause (iii) as part of the local
17sales tax increment under this Act. "Local sales tax increment"
18means, with respect to local sales taxes administered by a
19municipality, county, or other unit of local government, that
20portion of the local sales tax that is in excess of the local
21sales tax for the same month in the base year, as determined by
22the respective municipality, county, or other unit of local
23government. If any portion of local sales taxes are, at the
24time of formation of a STAR bond district, already subject to
25tax increment financing under the Tax Increment Allocation
26Redevelopment Act, then the local sales tax increment for such

 

 

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1portion shall be frozen at the base year established in
2accordance with this Act, and all future incremental increases
3shall be included in the "local sales tax increment" under this
4Act. Any party otherwise entitled to receipt of incremental
5local sales tax revenues through an existing tax increment
6financing district shall be entitled to continue to receive
7such revenues up to the amount frozen in the base year. Nothing
8in this Act shall affect the prior qualification of existing
9redevelopment project costs incurred that are eligible for
10reimbursement under the Tax Increment Allocation Redevelopment
11Act. In such event, prior to approving a STAR bond district,
12the political subdivision forming the STAR bond district shall
13take such action as is necessary, including amending the
14existing tax increment financing district redevelopment plan,
15to carry out the provisions of this Act. The Illinois
16Department of Revenue shall allocate the local sales tax
17increment only if the local sales tax is administered by the
18Department. "Local sales tax increment" does not include taxes
19and penalties collected on aviation fuel, as defined in Section
203 of the Retailers' Occupation Tax, sold on or after December
211, 2019.
22    "Market study" means a study to determine the ability of
23the proposed STAR bond project to gain market share locally and
24regionally and to remain profitable past the term of repayment
25of STAR bonds.
26    "Master developer" means a developer cooperating with a

 

 

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1political subdivision to plan, develop, and implement a STAR
2bond project plan for a STAR bond district. Subject to the
3limitations of Section 25, the master developer may work with
4and transfer certain development rights to other developers for
5the purpose of implementing STAR bond project plans and
6achieving the purposes of this Act. A master developer for a
7STAR bond district shall be appointed by a political
8subdivision in the resolution establishing the STAR bond
9district, and the master developer must, at the time of
10appointment, own or have control of, through purchase
11agreements, option contracts, or other means, not less than 50%
12of the acreage within the STAR bond district and the master
13developer or its affiliate must have ownership or control on
14June 1, 2010.
15    "Master development agreement" means an agreement between
16the master developer and the political subdivision to govern a
17STAR bond district and any STAR bond projects.
18    "Municipality" means the city, village, or incorporated
19town in which a proposed STAR bond district is located.
20    "Pledged STAR revenues" means those sales tax and revenues
21and other sources of funds pledged to pay debt service on STAR
22bonds or to pay project costs pursuant to Section 30.
23Notwithstanding any provision to the contrary, the following
24revenues shall not constitute pledged STAR revenues or be
25available to pay principal and interest on STAR bonds: any
26State sales tax increment or local sales tax increment from a

 

 

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1retail entity initiating operations in a STAR bond district
2while terminating operations at another Illinois location
3within 25 miles of the STAR bond district. For purposes of this
4paragraph, "terminating operations" means a closing of a retail
5operation that is directly related to the opening of the same
6operation or like retail entity owned or operated by more than
750% of the original ownership in a STAR bond district within
8one year before or after initiating operations in the STAR bond
9district, but it does not mean closing an operation for reasons
10beyond the control of the retail entity, as documented by the
11retail entity, subject to a reasonable finding by the
12municipality (or county if such retail operation is not located
13within a municipality) in which the terminated operations were
14located that the closed location contained inadequate space,
15had become economically obsolete, or was no longer a viable
16location for the retailer or serviceman.
17    "Political subdivision" means a municipality or county
18which undertakes to establish a STAR bond district pursuant to
19the provisions of this Act.
20    "Project costs" means and includes the sum total of all
21costs incurred or estimated to be incurred on or following the
22date of establishment of a STAR bond district that are
23reasonable or necessary to implement a STAR bond district plan
24or any STAR bond project plans, or both, including costs
25incurred for public improvements and private improvements that
26serve the public purposes set forth in Section 5 of this Act.

 

 

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1Such costs include without limitation the following:
2        (a) costs of studies, surveys, development of plans and
3    specifications, formation, implementation, and
4    administration of a STAR bond district, STAR bond district
5    plan, any STAR bond projects, or any STAR bond project
6    plans, including, but not limited to, staff and
7    professional service costs for architectural, engineering,
8    legal, financial, planning, or other services, provided
9    however that no charges for professional services may be
10    based on a percentage of the tax increment collected and no
11    contracts for professional services, excluding
12    architectural and engineering services, may be entered
13    into if the terms of the contract extend beyond a period of
14    3 years;
15        (b) property assembly costs, including, but not
16    limited to, acquisition of land and other real property or
17    rights or interests therein, located within the boundaries
18    of a STAR bond district, demolition of buildings, site
19    preparation, site improvements that serve as an engineered
20    barrier addressing ground level or below ground
21    environmental contamination, including, but not limited
22    to, parking lots and other concrete or asphalt barriers,
23    the clearing and grading of land, and importing additional
24    soil and fill materials, or removal of soil and fill
25    materials from the site;
26        (c) subject to paragraph (d), costs of buildings and

 

 

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1    other vertical improvements that are located within the
2    boundaries of a STAR bond district and owned by a political
3    subdivision or other public entity, including without
4    limitation police and fire stations, educational
5    facilities, and public restrooms and rest areas;
6        (c-1) costs of buildings and other vertical
7    improvements that are located within the boundaries of a
8    STAR bond district and owned by a destination user or
9    destination hotel; except that only 2 destination users in
10    a STAR bond district and one destination hotel are eligible
11    to include the cost of those vertical improvements as
12    project costs;
13        (c-5) costs of buildings; rides and attractions, which
14    include carousels, slides, roller coasters, displays,
15    models, towers, works of art, and similar theme and
16    amusement park improvements; and other vertical
17    improvements that are located within the boundaries of a
18    STAR bond district and owned by an entertainment user;
19    except that only one entertainment user in a STAR bond
20    district is eligible to include the cost of those vertical
21    improvements as project costs;
22        (d) costs of the design and construction of
23    infrastructure and public works located within the
24    boundaries of a STAR bond district that are reasonable or
25    necessary to implement a STAR bond district plan or any
26    STAR bond project plans, or both, except that project costs

 

 

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1    shall not include the cost of constructing a new municipal
2    public building principally used to provide offices,
3    storage space, or conference facilities or vehicle
4    storage, maintenance, or repair for administrative, public
5    safety, or public works personnel and that is not intended
6    to replace an existing public building unless the political
7    subdivision makes a reasonable determination in a STAR bond
8    district plan or any STAR bond project plans, supported by
9    information that provides the basis for that
10    determination, that the new municipal building is required
11    to meet an increase in the need for public safety purposes
12    anticipated to result from the implementation of the STAR
13    bond district plan or any STAR bond project plans;
14        (e) costs of the design and construction of the
15    following improvements located outside the boundaries of a
16    STAR bond district, provided that the costs are essential
17    to further the purpose and development of a STAR bond
18    district plan and either (i) part of and connected to
19    sewer, water, or utility service lines that physically
20    connect to the STAR bond district or (ii) significant
21    improvements for adjacent offsite highways, streets,
22    roadways, and interchanges that are approved by the
23    Illinois Department of Transportation. No other cost of
24    infrastructure and public works improvements located
25    outside the boundaries of a STAR bond district may be
26    deemed project costs;

 

 

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1        (f) costs of job training and retraining projects,
2    including the cost of "welfare to work" programs
3    implemented by businesses located within a STAR bond
4    district;
5        (g) financing costs, including, but not limited to, all
6    necessary and incidental expenses related to the issuance
7    of obligations and which may include payment of interest on
8    any obligations issued hereunder including interest
9    accruing during the estimated period of construction of any
10    improvements in a STAR bond district or any STAR bond
11    projects for which such obligations are issued and for not
12    exceeding 36 months thereafter and including reasonable
13    reserves related thereto;
14        (h) to the extent the political subdivision by written
15    agreement accepts and approves the same, all or a portion
16    of a taxing district's capital costs resulting from a STAR
17    bond district or STAR bond projects necessarily incurred or
18    to be incurred within a taxing district in furtherance of
19    the objectives of a STAR bond district plan or STAR bond
20    project plans;
21        (i) interest cost incurred by a developer for project
22    costs related to the acquisition, formation,
23    implementation, development, construction, and
24    administration of a STAR bond district, STAR bond district
25    plan, STAR bond projects, or any STAR bond project plans
26    provided that:

 

 

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1            (i) payment of such costs in any one year may not
2        exceed 30% of the annual interest costs incurred by the
3        developer with regard to the STAR bond district or any
4        STAR bond projects during that year; and
5            (ii) the total of such interest payments paid
6        pursuant to this Act may not exceed 30% of the total
7        cost paid or incurred by the developer for a STAR bond
8        district or STAR bond projects, plus project costs,
9        excluding any property assembly costs incurred by a
10        political subdivision pursuant to this Act;
11        (j) costs of common areas located within the boundaries
12    of a STAR bond district;
13        (k) costs of landscaping and plantings, retaining
14    walls and fences, man-made lakes and ponds, shelters,
15    benches, lighting, and similar amenities located within
16    the boundaries of a STAR bond district;
17        (l) costs of mounted building signs, site monument, and
18    pylon signs located within the boundaries of a STAR bond
19    district; or
20        (m) if included in the STAR bond district plan and
21    approved in writing by the Director, salaries or a portion
22    of salaries for local government employees to the extent
23    the same are directly attributable to the work of such
24    employees on the establishment and management of a STAR
25    bond district or any STAR bond projects.
26    Except as specified in items (a) through (m), "project

 

 

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1costs" shall not include:
2        (i) the cost of construction of buildings that are
3    privately owned or owned by a municipality and leased to a
4    developer or retail user for non-entertainment retail
5    uses;
6        (ii) moving expenses for employees of the businesses
7    locating within the STAR bond district;
8        (iii) property taxes for property located in the STAR
9    bond district;
10        (iv) lobbying costs; and
11        (v) general overhead or administrative costs of the
12    political subdivision that would still have been incurred
13    by the political subdivision if the political subdivision
14    had not established a STAR bond district.
15    "Project development agreement" means any one or more
16agreements, including any amendments thereto, between a master
17developer and any co-developer or subdeveloper in connection
18with a STAR bond project, which project development agreement
19may include the political subdivision as a party.
20    "Projected market area" means any area within the State in
21which a STAR bond district or STAR bond project is projected to
22have a significant fiscal or market impact as determined by the
23Director.
24    "Resolution" means a resolution, order, ordinance, or
25other appropriate form of legislative action of a political
26subdivision or other applicable public entity approved by a

 

 

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1vote of a majority of a quorum at a meeting of the governing
2body of the political subdivision or applicable public entity.
3    "STAR bond" means a sales tax and revenue bond, note, or
4other obligation payable from pledged STAR revenues and issued
5by a political subdivision, the proceeds of which shall be used
6only to pay project costs as defined in this Act.
7    "STAR bond district" means the specific area declared to be
8an eligible area as determined by the political subdivision,
9and approved by the Director, in which the political
10subdivision may develop one or more STAR bond projects.
11    "STAR bond district plan" means the preliminary or
12conceptual plan that generally identifies the proposed STAR
13bond project areas and identifies in a general manner the
14buildings, facilities, and improvements to be constructed or
15improved in each STAR bond project area.
16    "STAR bond project" means a project within a STAR bond
17district which is approved pursuant to Section 20.
18    "STAR bond project area" means the geographic area within a
19STAR bond district in which there may be one or more STAR bond
20projects.
21    "STAR bond project plan" means the written plan adopted by
22a political subdivision for the development of a STAR bond
23project in a STAR bond district; the plan may include, but is
24not limited to, (i) project costs incurred prior to the date of
25the STAR bond project plan and estimated future STAR bond
26project costs, (ii) proposed sources of funds to pay those

 

 

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1costs, (iii) the nature and estimated term of any obligations
2to be issued by the political subdivision to pay those costs,
3(iv) the most recent equalized assessed valuation of the STAR
4bond project area, (v) an estimate of the equalized assessed
5valuation of the STAR bond district or applicable project area
6after completion of a STAR bond project, (vi) a general
7description of the types of any known or proposed developers,
8users, or tenants of the STAR bond project or projects included
9in the plan, (vii) a general description of the type,
10structure, and character of the property or facilities to be
11developed or improved, (viii) a description of the general land
12uses to apply to the STAR bond project, and (ix) a general
13description or an estimate of the type, class, and number of
14employees to be employed in the operation of the STAR bond
15project.
16    "State sales tax" means all of the net revenue realized
17under the Retailers' Occupation Tax Act, the Use Tax Act, the
18Service Use Tax Act, and the Service Occupation Tax Act from
19transactions at places of business located within a STAR bond
20district, excluding that portion of the net revenue realized
21under the Retailers' Occupation Tax Act, the Use Tax Act, the
22Service Use Tax Act, and the Service Occupation Tax Act from
23transactions at places of business located within a STAR bond
24district that is deposited into the Local Government Tax Fund
25and the County and Mass Transit District Fund.
26    "State sales tax increment" means (i) 100% of that portion

 

 

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1of the State sales tax that is in excess of the State sales tax
2for the same month in the base year, as determined by the
3Department of Revenue, from transactions at up to 2 destination
4users, one destination hotel, and one entertainment user
5located within a STAR bond district, which destination users,
6destination hotel, and entertainment user shall be designated
7by the master developer and approved by the political
8subdivision and the Director in conjunction with the applicable
9STAR bond project approval, and (ii) 25% of that portion of the
10State sales tax that is in excess of the State sales tax for
11the same month in the base year, as determined by the
12Department of Revenue, from all other transactions within a
13STAR bond district. If any portion of State sales taxes are, at
14the time of formation of a STAR bond district, already subject
15to tax increment financing under the Tax Increment Allocation
16Redevelopment Act, then the State sales tax increment for such
17portion shall be frozen at the base year established in
18accordance with this Act, and all future incremental increases
19shall be included in the State sales tax increment under this
20Act. Any party otherwise entitled to receipt of incremental
21State sales tax revenues through an existing tax increment
22financing district shall be entitled to continue to receive
23such revenues up to the amount frozen in the base year. Nothing
24in this Act shall affect the prior qualification of existing
25redevelopment project costs incurred that are eligible for
26reimbursement under the Tax Increment Allocation Redevelopment

 

 

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1Act. In such event, prior to approving a STAR bond district,
2the political subdivision forming the STAR bond district shall
3take such action as is necessary, including amending the
4existing tax increment financing district redevelopment plan,
5to carry out the provisions of this Act.
6    "Substantial change" means a change wherein the proposed
7STAR bond project plan differs substantially in size, scope, or
8use from the approved STAR bond district plan or STAR bond
9project plan.
10    "Taxpayer" means an individual, partnership, corporation,
11limited liability company, trust, estate, or other entity that
12is subject to the Illinois Income Tax Act.
13    "Total development costs" means the aggregate public and
14private investment in a STAR bond district, including project
15costs and other direct and indirect costs related to the
16development of the STAR bond district.
17    "Traditional retail use" means the operation of a business
18that derives at least 90% of its annual gross revenue from
19sales at retail, as that phrase is defined by Section 1 of the
20Retailers' Occupation Tax Act, but does not include the
21operations of destination users, entertainment users,
22restaurants, hotels, retail uses within hotels, or any other
23non-retail uses.
24    "Vacant" means that portion of the land in a proposed STAR
25bond district that is not occupied by a building, facility, or
26other vertical improvement.

 

 

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1(Source: P.A. 99-642, eff. 7-28-16.)
 
2    (50 ILCS 470/31)
3    Sec. 31. STAR bond occupation taxes.
4    (a) If the corporate authorities of a political subdivision
5have established a STAR bond district and have elected to
6impose a tax by ordinance pursuant to subsection (b) or (c) of
7this Section, each year after the date of the adoption of the
8ordinance and until all STAR bond project costs and all
9political subdivision obligations financing the STAR bond
10project costs, if any, have been paid in accordance with the
11STAR bond project plans, but in no event longer than the
12maximum maturity date of the last of the STAR bonds issued for
13projects in the STAR bond district, all amounts generated by
14the retailers' occupation tax and service occupation tax shall
15be collected and the tax shall be enforced by the Department of
16Revenue in the same manner as all retailers' occupation taxes
17and service occupation taxes imposed in the political
18subdivision imposing the tax. The corporate authorities of the
19political subdivision shall deposit the proceeds of the taxes
20imposed under subsections (b) and (c) into either (i) a special
21fund held by the corporate authorities of the political
22subdivision called the STAR Bonds Tax Allocation Fund for the
23purpose of paying STAR bond project costs and obligations
24incurred in the payment of those costs if such taxes are
25designated as pledged STAR revenues by resolution or ordinance

 

 

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1of the political subdivision or (ii) the political
2subdivision's general corporate fund if such taxes are not
3designated as pledged STAR revenues by resolution or ordinance.
4    The tax imposed under this Section by a municipality may be
5imposed only on the portion of a STAR bond district that is
6within the boundaries of the municipality. For any part of a
7STAR bond district that lies outside of the boundaries of that
8municipality, the municipality in which the other part of the
9STAR bond district lies (or the county, in cases where a
10portion of the STAR bond district lies in the unincorporated
11area of a county) is authorized to impose the tax under this
12Section on that part of the STAR bond district.
13    (b) The corporate authorities of a political subdivision
14that has established a STAR bond district under this Act may,
15by ordinance or resolution, impose a STAR Bond Retailers'
16Occupation Tax upon all persons engaged in the business of
17selling tangible personal property, other than an item of
18tangible personal property titled or registered with an agency
19of this State's government, at retail in the STAR bond district
20at a rate not to exceed 1% of the gross receipts from the sales
21made in the course of that business, to be imposed only in
220.25% increments. The tax may not be imposed on tangible
23personal property taxed at the 1% rate under the Retailers'
24Occupation Tax Act. Beginning December 1, 2019, this tax is not
25imposed on sales of aviation fuel unless the tax revenue is
26expended for airport-related purposes. If the District does not

 

 

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1have an airport-related purpose to which aviation fuel tax
2revenue is dedicated, then aviation fuel is excluded from the
3tax. The municipality must comply with the certification
4requirements for airport-related purposes under Section
58-11-22 of the Illinois Municipal Code. For purposes of this
6Act, "airport-related purposes" has the meaning ascribed in
7Section 6z-20.2 of the State Finance Act. This exclusion for
8aviation fuel only applies for so long as the revenue use
9requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
10binding on the District.
11    The tax imposed under this subsection and all civil
12penalties that may be assessed as an incident thereof shall be
13collected and enforced by the Department of Revenue. The
14certificate of registration that is issued by the Department to
15a retailer under the Retailers' Occupation Tax Act shall permit
16the retailer to engage in a business that is taxable under any
17ordinance or resolution enacted pursuant to this subsection
18without registering separately with the Department under such
19ordinance or resolution or under this subsection. The
20Department of Revenue shall have full power to administer and
21enforce this subsection, to collect all taxes and penalties due
22under this subsection in the manner hereinafter provided, and
23to determine all rights to credit memoranda arising on account
24of the erroneous payment of tax or penalty under this
25subsection. In the administration of, and compliance with, this
26subsection, the Department and persons who are subject to this

 

 

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1subsection shall have the same rights, remedies, privileges,
2immunities, powers, and duties, and be subject to the same
3conditions, restrictions, limitations, penalties, exclusions,
4exemptions, and definitions of terms and employ the same modes
5of procedure, as are prescribed in Sections 1, 1a through 1o, 2
6through 2-65 (in respect to all provisions therein other than
7the State rate of tax), 2c through 2h, 3 (except as to the
8disposition of taxes and penalties collected, and except that
9the retailer's discount is not allowed for taxes paid on
10aviation fuel that are deposited into the Local Government
11Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j,
125k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the
13Retailers' Occupation Tax Act and all provisions of the Uniform
14Penalty and Interest Act, as fully as if those provisions were
15set forth herein.
16    If a tax is imposed under this subsection (b), a tax shall
17also be imposed under subsection (c) of this Section.
18    (c) If a tax has been imposed under subsection (b), a STAR
19Bond Service Occupation Tax shall also be imposed upon all
20persons engaged, in the STAR bond district, in the business of
21making sales of service, who, as an incident to making those
22sales of service, transfer tangible personal property within
23the STAR bond district, either in the form of tangible personal
24property or in the form of real estate as an incident to a sale
25of service. The tax shall be imposed at the same rate as the
26tax imposed in subsection (b) and shall not exceed 1% of the

 

 

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1selling price of tangible personal property so transferred
2within the STAR bond district, to be imposed only in 0.25%
3increments. The tax may not be imposed on tangible personal
4property taxed at the 1% rate under the Service Occupation Tax
5Act. Beginning December 1, 2019, this tax is not imposed on
6sales of aviation fuel unless the tax revenue is expended for
7airport-related purposes. If the District does not have an
8airport-related purpose to which aviation fuel tax revenue is
9dedicated, then aviation fuel is excluded from the tax. The
10municipality must comply with the certification requirements
11for airport-related purposes under Section 8-11-22 of the
12Illinois Municipal Code. For purposes of this Act,
13"airport-related purposes" has the meaning ascribed in Section
146z-20.2 of the State Finance Act. This exclusion for aviation
15fuel only applies for so long as the revenue use requirements
16of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
17District.
18    The tax imposed under this subsection and all civil
19penalties that may be assessed as an incident thereof shall be
20collected and enforced by the Department of Revenue. The
21certificate of registration that is issued by the Department to
22a retailer under the Retailers' Occupation Tax Act or under the
23Service Occupation Tax Act shall permit the registrant to
24engage in a business that is taxable under any ordinance or
25resolution enacted pursuant to this subsection without
26registering separately with the Department under that

 

 

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1ordinance or resolution or under this subsection. The
2Department of Revenue shall have full power to administer and
3enforce this subsection, to collect all taxes and penalties due
4under this subsection, to dispose of taxes and penalties so
5collected in the manner hereinafter provided, and to determine
6all rights to credit memoranda arising on account of the
7erroneous payment of tax or penalty under this subsection. In
8the administration of, and compliance with this subsection, the
9Department and persons who are subject to this subsection shall
10have the same rights, remedies, privileges, immunities,
11powers, and duties, and be subject to the same conditions,
12restrictions, limitations, penalties, exclusions, exemptions,
13and definitions of terms and employ the same modes of procedure
14as are prescribed in Sections 2, 2a through 2d, 3 through 3-50
15(in respect to all provisions therein other than the State rate
16of tax), 4 (except that the reference to the State shall be to
17the STAR bond district), 5, 7, 8 (except that the jurisdiction
18to which the tax shall be a debt to the extent indicated in
19that Section 8 shall be the political subdivision), 9 (except
20as to the disposition of taxes and penalties collected, and
21except that the returned merchandise credit for this tax may
22not be taken against any State tax, and except that the
23retailer's discount is not allowed for taxes paid on aviation
24fuel that are deposited into the Local Government Aviation
25Trust Fund), 10, 11, 12 (except the reference therein to
26Section 2b of the Retailers' Occupation Tax Act), 13 (except

 

 

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1that any reference to the State shall mean the political
2subdivision), the first paragraph of Section 15, and Sections
316, 17, 18, 19 and 20 of the Service Occupation Tax Act and all
4provisions of the Uniform Penalty and Interest Act, as fully as
5if those provisions were set forth herein.
6    If a tax is imposed under this subsection (c), a tax shall
7also be imposed under subsection (b) of this Section.
8    (d) Persons subject to any tax imposed under this Section
9may reimburse themselves for their seller's tax liability under
10this Section by separately stating the tax as an additional
11charge, which charge may be stated in combination, in a single
12amount, with State taxes that sellers are required to collect
13under the Use Tax Act, in accordance with such bracket
14schedules as the Department may prescribe.
15    Whenever the Department determines that a refund should be
16made under this Section to a claimant instead of issuing a
17credit memorandum, the Department shall notify the State
18Comptroller, who shall cause the order to be drawn for the
19amount specified and to the person named in the notification
20from the Department. The refund shall be paid by the State
21Treasurer out of the STAR Bond Retailers' Occupation Tax Fund.
22    Except as otherwise provided in this paragraph, the The
23Department shall immediately pay over to the State Treasurer,
24ex officio, as trustee, all taxes, penalties, and interest
25collected under this Section for deposit into the STAR Bond
26Retailers' Occupation Tax Fund. Taxes and penalties collected

 

 

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1on aviation fuel sold on or after December 1, 2019, shall be
2immediately paid over by the Department to the State Treasurer,
3ex officio, as trustee, for deposit into the Local Government
4Aviation Trust Fund. The Department shall only pay moneys into
5the State Aviation Program Fund under this Act for so long as
6the revenue use requirements of 49 U.S.C. 47107(b) and 49
7U.S.C. 47133 are binding on the District. On or before the 25th
8day of each calendar month, the Department shall prepare and
9certify to the Comptroller the disbursement of stated sums of
10money to named political subdivisions from the STAR Bond
11Retailers' Occupation Tax Fund, the political subdivisions to
12be those from which retailers have paid taxes or penalties
13under this Section to the Department during the second
14preceding calendar month. The amount to be paid to each
15political subdivision shall be the amount (not including credit
16memoranda and not including taxes and penalties collected on
17aviation fuel sold on or after December 1, 2019) collected
18under this Section during the second preceding calendar month
19by the Department plus an amount the Department determines is
20necessary to offset any amounts that were erroneously paid to a
21different taxing body, and not including an amount equal to the
22amount of refunds made during the second preceding calendar
23month by the Department, less 3% of that amount, which shall be
24deposited into the Tax Compliance and Administration Fund and
25shall be used by the Department, subject to appropriation, to
26cover the costs of the Department in administering and

 

 

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1enforcing the provisions of this Section, on behalf of such
2political subdivision, and not including any amount that the
3Department determines is necessary to offset any amounts that
4were payable to a different taxing body but were erroneously
5paid to the political subdivision. Within 10 days after receipt
6by the Comptroller of the disbursement certification to the
7political subdivisions provided for in this Section to be given
8to the Comptroller by the Department, the Comptroller shall
9cause the orders to be drawn for the respective amounts in
10accordance with the directions contained in the certification.
11The proceeds of the tax paid to political subdivisions under
12this Section shall be deposited into either (i) the STAR Bonds
13Tax Allocation Fund by the political subdivision if the
14political subdivision has designated them as pledged STAR
15revenues by resolution or ordinance or (ii) the political
16subdivision's general corporate fund if the political
17subdivision has not designated them as pledged STAR revenues.
18    An ordinance or resolution imposing or discontinuing the
19tax under this Section or effecting a change in the rate
20thereof shall either (i) be adopted and a certified copy
21thereof filed with the Department on or before the first day of
22April, whereupon the Department, if all other requirements of
23this Section are met, shall proceed to administer and enforce
24this Section as of the first day of July next following the
25adoption and filing; or (ii) be adopted and a certified copy
26thereof filed with the Department on or before the first day of

 

 

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1October, whereupon, if all other requirements of this Section
2are met, the Department shall proceed to administer and enforce
3this Section as of the first day of January next following the
4adoption and filing.
5    The Department of Revenue shall not administer or enforce
6an ordinance imposing, discontinuing, or changing the rate of
7the tax under this Section until the political subdivision also
8provides, in the manner prescribed by the Department, the
9boundaries of the STAR bond district and each address in the
10STAR bond district in such a way that the Department can
11determine by its address whether a business is located in the
12STAR bond district. The political subdivision must provide this
13boundary and address information to the Department on or before
14April 1 for administration and enforcement of the tax under
15this Section by the Department beginning on the following July
161 and on or before October 1 for administration and enforcement
17of the tax under this Section by the Department beginning on
18the following January 1. The Department of Revenue shall not
19administer or enforce any change made to the boundaries of a
20STAR bond district or any address change, addition, or deletion
21until the political subdivision reports the boundary change or
22address change, addition, or deletion to the Department in the
23manner prescribed by the Department. The political subdivision
24must provide this boundary change or address change, addition,
25or deletion information to the Department on or before April 1
26for administration and enforcement by the Department of the

 

 

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1change, addition, or deletion beginning on the following July 1
2and on or before October 1 for administration and enforcement
3by the Department of the change, addition, or deletion
4beginning on the following January 1. The retailers in the STAR
5bond district shall be responsible for charging the tax imposed
6under this Section. If a retailer is incorrectly included or
7excluded from the list of those required to collect the tax
8under this Section, both the Department of Revenue and the
9retailer shall be held harmless if they reasonably relied on
10information provided by the political subdivision.
11    A political subdivision that imposes the tax under this
12Section must submit to the Department of Revenue any other
13information as the Department may require that is necessary for
14the administration and enforcement of the tax.
15    When certifying the amount of a monthly disbursement to a
16political subdivision under this Section, the Department shall
17increase or decrease the amount by an amount necessary to
18offset any misallocation of previous disbursements. The offset
19amount shall be the amount erroneously disbursed within the
20previous 6 months from the time a misallocation is discovered.
21    Nothing in this Section shall be construed to authorize the
22political subdivision to impose a tax upon the privilege of
23engaging in any business which under the Constitution of the
24United States may not be made the subject of taxation by this
25State.
26    (e) When STAR bond project costs, including, without

 

 

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1limitation, all political subdivision obligations financing
2STAR bond project costs, have been paid, any surplus funds then
3remaining in the STAR Bonds Tax Allocation Fund shall be
4distributed to the treasurer of the political subdivision for
5deposit into the political subdivision's general corporate
6fund. Upon payment of all STAR bond project costs and
7retirement of obligations, but in no event later than the
8maximum maturity date of the last of the STAR bonds issued in
9the STAR bond district, the political subdivision shall adopt
10an ordinance immediately rescinding the taxes imposed pursuant
11to this Section and file a certified copy of the ordinance with
12the Department in the form and manner as described in this
13Section.
14(Source: P.A. 99-143, eff. 7-27-15; 100-1171, eff. 1-4-19.)
 
15    Section 40. The Counties Code is amended by changing
16Sections 5-1006, 5-1006.5, 5-1006.7, 5-1007, 5-1008.5, 5-1009,
17and 5-1035.1 and by adding Section 5-1184 as follows:
 
18    (55 ILCS 5/5-1006)  (from Ch. 34, par. 5-1006)
19    Sec. 5-1006. Home Rule County Retailers' Occupation Tax
20Law. Any county that is a home rule unit may impose a tax upon
21all persons engaged in the business of selling tangible
22personal property, other than an item of tangible personal
23property titled or registered with an agency of this State's
24government, at retail in the county on the gross receipts from

 

 

HB2682- 174 -LRB101 09562 HLH 54660 b

1such sales made in the course of their business. If imposed,
2this tax shall only be imposed in 1/4% increments. On and after
3September 1, 1991, this additional tax may not be imposed on
4tangible personal property taxed at the 1% rate under the
5Retailers' Occupation Tax Act. Beginning December 1, 2019, this
6tax is not imposed on sales of aviation fuel unless the tax
7revenue is expended for airport-related purposes. If the county
8does not have an airport-related purpose to which it dedicates
9aviation fuel tax revenue, then aviation fuel is excluded from
10the tax. The county must comply with the certification
11requirements for airport-related purposes under Section
125-1184. For purposes of this Act, "airport-related purposes"
13has the meaning ascribed in Section 6z-20.2 of the State
14Finance Act. This exclusion for aviation fuel only applies for
15so long as the revenue use requirements of 49 U.S.C. 47107(b)
16and 49 U.S.C. 47133 are binding on the county. The changes made
17to this Section by this amendatory Act of the 101st General
18Assembly are a denial and limitation of home rule powers and
19functions under subsection (g) of Section 6 of Article VII of
20the Illinois Constitution. The tax imposed by a home rule
21county pursuant to this Section and all civil penalties that
22may be assessed as an incident thereof shall be collected and
23enforced by the State Department of Revenue. The certificate of
24registration that is issued by the Department to a retailer
25under the Retailers' Occupation Tax Act shall permit the
26retailer to engage in a business that is taxable under any

 

 

HB2682- 175 -LRB101 09562 HLH 54660 b

1ordinance or resolution enacted pursuant to this Section
2without registering separately with the Department under such
3ordinance or resolution or under this Section. The Department
4shall have full power to administer and enforce this Section;
5to collect all taxes and penalties due hereunder; to dispose of
6taxes and penalties so collected in the manner hereinafter
7provided; and to determine all rights to credit memoranda
8arising on account of the erroneous payment of tax or penalty
9hereunder. In the administration of, and compliance with, this
10Section, the Department and persons who are subject to this
11Section shall have the same rights, remedies, privileges,
12immunities, powers and duties, and be subject to the same
13conditions, restrictions, limitations, penalties and
14definitions of terms, and employ the same modes of procedure,
15as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j,
161k, 1m, 1n, 2 through 2-65 (in respect to all provisions
17therein other than the State rate of tax), 4, 5, 5a, 5b, 5c,
185d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
1910, 11, 12 and 13 of the Retailers' Occupation Tax Act and
20Section 3-7 of the Uniform Penalty and Interest Act, as fully
21as if those provisions were set forth herein.
22    No tax may be imposed by a home rule county pursuant to
23this Section unless the county also imposes a tax at the same
24rate pursuant to Section 5-1007.
25    Persons subject to any tax imposed pursuant to the
26authority granted in this Section may reimburse themselves for

 

 

HB2682- 176 -LRB101 09562 HLH 54660 b

1their seller's tax liability hereunder by separately stating
2such tax as an additional charge, which charge may be stated in
3combination, in a single amount, with State tax which sellers
4are required to collect under the Use Tax Act, pursuant to such
5bracket schedules as the Department may prescribe.
6    Whenever the Department determines that a refund should be
7made under this Section to a claimant instead of issuing a
8credit memorandum, the Department shall notify the State
9Comptroller, who shall cause the order to be drawn for the
10amount specified and to the person named in the notification
11from the Department. The refund shall be paid by the State
12Treasurer out of the home rule county retailers' occupation tax
13fund.
14    Except as otherwise provided in this paragraph, the The
15Department shall forthwith pay over to the State Treasurer, ex
16officio, as trustee, all taxes and penalties collected
17hereunder for deposit into the Home Rule County Retailers'
18Occupation Tax Fund. Taxes and penalties collected on aviation
19fuel sold on or after December 1, 2019, shall be immediately
20paid over by the Department to the State Treasurer, ex officio,
21as trustee, for deposit into the Local Government Aviation
22Trust Fund. The Department shall only pay moneys into the Local
23Government Aviation Trust Fund under this Act for so long as
24the revenue use requirements of 49 U.S.C. 47107(b) and 49
25U.S.C. 47133 are binding on the county.
26    As soon as possible after the first day of each month,

 

 

HB2682- 177 -LRB101 09562 HLH 54660 b

1beginning January 1, 2011, upon certification of the Department
2of Revenue, the Comptroller shall order transferred, and the
3Treasurer shall transfer, to the STAR Bonds Revenue Fund the
4local sales tax increment, as defined in the Innovation
5Development and Economy Act, collected under this Section
6during the second preceding calendar month for sales within a
7STAR bond district.
8    After the monthly transfer to the STAR Bonds Revenue Fund,
9on or before the 25th day of each calendar month, the
10Department shall prepare and certify to the Comptroller the
11disbursement of stated sums of money to named counties, the
12counties to be those from which retailers have paid taxes or
13penalties hereunder to the Department during the second
14preceding calendar month. The amount to be paid to each county
15shall be the amount (not including credit memoranda and not
16including taxes and penalties collected on aviation fuel sold
17on or after December 1, 2019) collected hereunder during the
18second preceding calendar month by the Department plus an
19amount the Department determines is necessary to offset any
20amounts that were erroneously paid to a different taxing body,
21and not including an amount equal to the amount of refunds made
22during the second preceding calendar month by the Department on
23behalf of such county, and not including any amount which the
24Department determines is necessary to offset any amounts which
25were payable to a different taxing body but were erroneously
26paid to the county, and not including any amounts that are

 

 

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1transferred to the STAR Bonds Revenue Fund, less 1.5% of the
2remainder, which the Department shall transfer into the Tax
3Compliance and Administration Fund. The Department, at the time
4of each monthly disbursement to the counties, shall prepare and
5certify to the State Comptroller the amount to be transferred
6into the Tax Compliance and Administration Fund under this
7Section. Within 10 days after receipt, by the Comptroller, of
8the disbursement certification to the counties and the Tax
9Compliance and Administration Fund provided for in this Section
10to be given to the Comptroller by the Department, the
11Comptroller shall cause the orders to be drawn for the
12respective amounts in accordance with the directions contained
13in the certification.
14    In addition to the disbursement required by the preceding
15paragraph, an allocation shall be made in March of each year to
16each county that received more than $500,000 in disbursements
17under the preceding paragraph in the preceding calendar year.
18The allocation shall be in an amount equal to the average
19monthly distribution made to each such county under the
20preceding paragraph during the preceding calendar year
21(excluding the 2 months of highest receipts). The distribution
22made in March of each year subsequent to the year in which an
23allocation was made pursuant to this paragraph and the
24preceding paragraph shall be reduced by the amount allocated
25and disbursed under this paragraph in the preceding calendar
26year. The Department shall prepare and certify to the

 

 

HB2682- 179 -LRB101 09562 HLH 54660 b

1Comptroller for disbursement the allocations made in
2accordance with this paragraph.
3    For the purpose of determining the local governmental unit
4whose tax is applicable, a retail sale by a producer of coal or
5other mineral mined in Illinois is a sale at retail at the
6place where the coal or other mineral mined in Illinois is
7extracted from the earth. This paragraph does not apply to coal
8or other mineral when it is delivered or shipped by the seller
9to the purchaser at a point outside Illinois so that the sale
10is exempt under the United States Constitution as a sale in
11interstate or foreign commerce.
12    Nothing in this Section shall be construed to authorize a
13county to impose a tax upon the privilege of engaging in any
14business which under the Constitution of the United States may
15not be made the subject of taxation by this State.
16    An ordinance or resolution imposing or discontinuing a tax
17hereunder or effecting a change in the rate thereof shall be
18adopted and a certified copy thereof filed with the Department
19on or before the first day of June, whereupon the Department
20shall proceed to administer and enforce this Section as of the
21first day of September next following such adoption and filing.
22Beginning January 1, 1992, an ordinance or resolution imposing
23or discontinuing the tax hereunder or effecting a change in the
24rate thereof shall be adopted and a certified copy thereof
25filed with the Department on or before the first day of July,
26whereupon the Department shall proceed to administer and

 

 

HB2682- 180 -LRB101 09562 HLH 54660 b

1enforce this Section as of the first day of October next
2following such adoption and filing. Beginning January 1, 1993,
3an ordinance or resolution imposing or discontinuing the tax
4hereunder or effecting a change in the rate thereof shall be
5adopted and a certified copy thereof filed with the Department
6on or before the first day of October, whereupon the Department
7shall proceed to administer and enforce this Section as of the
8first day of January next following such adoption and filing.
9Beginning April 1, 1998, an ordinance or resolution imposing or
10discontinuing the tax hereunder or effecting a change in the
11rate thereof shall either (i) be adopted and a certified copy
12thereof filed with the Department on or before the first day of
13April, whereupon the Department shall proceed to administer and
14enforce this Section as of the first day of July next following
15the adoption and filing; or (ii) be adopted and a certified
16copy thereof filed with the Department on or before the first
17day of October, whereupon the Department shall proceed to
18administer and enforce this Section as of the first day of
19January next following the adoption and filing.
20    When certifying the amount of a monthly disbursement to a
21county under this Section, the Department shall increase or
22decrease such amount by an amount necessary to offset any
23misallocation of previous disbursements. The offset amount
24shall be the amount erroneously disbursed within the previous 6
25months from the time a misallocation is discovered.
26    This Section shall be known and may be cited as the Home

 

 

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1Rule County Retailers' Occupation Tax Law.
2(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
3100-587, eff. 6-4-18; 100-1171, eff. 1-4-19; revised 1-9-19.)
 
4    (55 ILCS 5/5-1006.5)
5    Sec. 5-1006.5. Special County Retailers' Occupation Tax
6For Public Safety, Public Facilities, Mental Health, Substance
7Abuse, or Transportation.
8    (a) The county board of any county may impose a tax upon
9all persons engaged in the business of selling tangible
10personal property, other than personal property titled or
11registered with an agency of this State's government, at retail
12in the county on the gross receipts from the sales made in the
13course of business to provide revenue to be used exclusively
14for public safety, public facility, mental health, substance
15abuse, or transportation purposes in that county (except as
16otherwise provided in this Section), if a proposition for the
17tax has been submitted to the electors of that county and
18approved by a majority of those voting on the question. If
19imposed, this tax shall be imposed only in one-quarter percent
20increments. By resolution, the county board may order the
21proposition to be submitted at any election. If the tax is
22imposed for transportation purposes for expenditures for
23public highways or as authorized under the Illinois Highway
24Code, the county board must publish notice of the existence of
25its long-range highway transportation plan as required or

 

 

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1described in Section 5-301 of the Illinois Highway Code and
2must make the plan publicly available prior to approval of the
3ordinance or resolution imposing the tax. If the tax is imposed
4for transportation purposes for expenditures for passenger
5rail transportation, the county board must publish notice of
6the existence of its long-range passenger rail transportation
7plan and must make the plan publicly available prior to
8approval of the ordinance or resolution imposing the tax.
9    If a tax is imposed for public facilities purposes, then
10the name of the project may be included in the proposition at
11the discretion of the county board as determined in the
12enabling resolution. For example, the "XXX Nursing Home" or the
13"YYY Museum".
14    The county clerk shall certify the question to the proper
15election authority, who shall submit the proposition at an
16election in accordance with the general election law.
17        (1) The proposition for public safety purposes shall be
18    in substantially the following form:
19        "To pay for public safety purposes, shall (name of
20    county) be authorized to impose an increase on its share of
21    local sales taxes by (insert rate)?"
22        As additional information on the ballot below the
23    question shall appear the following:
24        "This would mean that a consumer would pay an
25    additional (insert amount) in sales tax for every $100 of
26    tangible personal property bought at retail."

 

 

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1        The county board may also opt to establish a sunset
2    provision at which time the additional sales tax would
3    cease being collected, if not terminated earlier by a vote
4    of the county board. If the county board votes to include a
5    sunset provision, the proposition for public safety
6    purposes shall be in substantially the following form:
7        "To pay for public safety purposes, shall (name of
8    county) be authorized to impose an increase on its share of
9    local sales taxes by (insert rate) for a period not to
10    exceed (insert number of years)?"
11        As additional information on the ballot below the
12    question shall appear the following:
13        "This would mean that a consumer would pay an
14    additional (insert amount) in sales tax for every $100 of
15    tangible personal property bought at retail. If imposed,
16    the additional tax would cease being collected at the end
17    of (insert number of years), if not terminated earlier by a
18    vote of the county board."
19        For the purposes of the paragraph, "public safety
20    purposes" means crime prevention, detention, fire
21    fighting, police, medical, ambulance, or other emergency
22    services.
23        Votes shall be recorded as "Yes" or "No".
24        Beginning on the January 1 or July 1, whichever is
25    first, that occurs not less than 30 days after May 31, 2015
26    (the effective date of Public Act 99-4), Adams County may

 

 

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1    impose a public safety retailers' occupation tax and
2    service occupation tax at the rate of 0.25%, as provided in
3    the referendum approved by the voters on April 7, 2015,
4    notwithstanding the omission of the additional information
5    that is otherwise required to be printed on the ballot
6    below the question pursuant to this item (1).
7        (2) The proposition for transportation purposes shall
8    be in substantially the following form:
9        "To pay for improvements to roads and other
10    transportation purposes, shall (name of county) be
11    authorized to impose an increase on its share of local
12    sales taxes by (insert rate)?"
13        As additional information on the ballot below the
14    question shall appear the following:
15        "This would mean that a consumer would pay an
16    additional (insert amount) in sales tax for every $100 of
17    tangible personal property bought at retail."
18        The county board may also opt to establish a sunset
19    provision at which time the additional sales tax would
20    cease being collected, if not terminated earlier by a vote
21    of the county board. If the county board votes to include a
22    sunset provision, the proposition for transportation
23    purposes shall be in substantially the following form:
24        "To pay for road improvements and other transportation
25    purposes, shall (name of county) be authorized to impose an
26    increase on its share of local sales taxes by (insert rate)

 

 

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1    for a period not to exceed (insert number of years)?"
2        As additional information on the ballot below the
3    question shall appear the following:
4        "This would mean that a consumer would pay an
5    additional (insert amount) in sales tax for every $100 of
6    tangible personal property bought at retail. If imposed,
7    the additional tax would cease being collected at the end
8    of (insert number of years), if not terminated earlier by a
9    vote of the county board."
10        For the purposes of this paragraph, transportation
11    purposes means construction, maintenance, operation, and
12    improvement of public highways, any other purpose for which
13    a county may expend funds under the Illinois Highway Code,
14    and passenger rail transportation.
15        The votes shall be recorded as "Yes" or "No".
16        (3) The proposition for public facilities purposes
17    shall be in substantially the following form:
18        "To pay for public facilities purposes, shall (name of
19    county) be authorized to impose an increase on its share of
20    local sales taxes by (insert rate)?"
21        As additional information on the ballot below the
22    question shall appear the following:
23        "This would mean that a consumer would pay an
24    additional (insert amount) in sales tax for every $100 of
25    tangible personal property bought at retail."
26        The county board may also opt to establish a sunset

 

 

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1    provision at which time the additional sales tax would
2    cease being collected, if not terminated earlier by a vote
3    of the county board. If the county board votes to include a
4    sunset provision, the proposition for public facilities
5    purposes shall be in substantially the following form:
6        "To pay for public facilities purposes, shall (name of
7    county) be authorized to impose an increase on its share of
8    local sales taxes by (insert rate) for a period not to
9    exceed (insert number of years)?"
10        As additional information on the ballot below the
11    question shall appear the following:
12        "This would mean that a consumer would pay an
13    additional (insert amount) in sales tax for every $100 of
14    tangible personal property bought at retail. If imposed,
15    the additional tax would cease being collected at the end
16    of (insert number of years), if not terminated earlier by a
17    vote of the county board."
18        For purposes of this Section, "public facilities
19    purposes" means the acquisition, development,
20    construction, reconstruction, rehabilitation, improvement,
21    financing, architectural planning, and installation of
22    capital facilities consisting of buildings, structures,
23    and durable equipment and for the acquisition and
24    improvement of real property and interest in real property
25    required, or expected to be required, in connection with
26    the public facilities, for use by the county for the

 

 

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1    furnishing of governmental services to its citizens,
2    including but not limited to museums and nursing homes.
3        The votes shall be recorded as "Yes" or "No".
4        (4) The proposition for mental health purposes shall be
5    in substantially the following form:
6        "To pay for mental health purposes, shall (name of
7    county) be authorized to impose an increase on its share of
8    local sales taxes by (insert rate)?"
9        As additional information on the ballot below the
10    question shall appear the following:
11        "This would mean that a consumer would pay an
12    additional (insert amount) in sales tax for every $100 of
13    tangible personal property bought at retail."
14        The county board may also opt to establish a sunset
15    provision at which time the additional sales tax would
16    cease being collected, if not terminated earlier by a vote
17    of the county board. If the county board votes to include a
18    sunset provision, the proposition for public facilities
19    purposes shall be in substantially the following form:
20        "To pay for mental health purposes, shall (name of
21    county) be authorized to impose an increase on its share of
22    local sales taxes by (insert rate) for a period not to
23    exceed (insert number of years)?"
24        As additional information on the ballot below the
25    question shall appear the following:
26        "This would mean that a consumer would pay an

 

 

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1    additional (insert amount) in sales tax for every $100 of
2    tangible personal property bought at retail. If imposed,
3    the additional tax would cease being collected at the end
4    of (insert number of years), if not terminated earlier by a
5    vote of the county board."
6        The votes shall be recorded as "Yes" or "No".
7        (5) The proposition for substance abuse purposes shall
8    be in substantially the following form:
9        "To pay for substance abuse purposes, shall (name of
10    county) be authorized to impose an increase on its share of
11    local sales taxes by (insert rate)?"
12        As additional information on the ballot below the
13    question shall appear the following:
14        "This would mean that a consumer would pay an
15    additional (insert amount) in sales tax for every $100 of
16    tangible personal property bought at retail."
17        The county board may also opt to establish a sunset
18    provision at which time the additional sales tax would
19    cease being collected, if not terminated earlier by a vote
20    of the county board. If the county board votes to include a
21    sunset provision, the proposition for public facilities
22    purposes shall be in substantially the following form:
23        "To pay for substance abuse purposes, shall (name of
24    county) be authorized to impose an increase on its share of
25    local sales taxes by (insert rate) for a period not to
26    exceed (insert number of years)?"

 

 

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1        As additional information on the ballot below the
2    question shall appear the following:
3        "This would mean that a consumer would pay an
4    additional (insert amount) in sales tax for every $100 of
5    tangible personal property bought at retail. If imposed,
6    the additional tax would cease being collected at the end
7    of (insert number of years), if not terminated earlier by a
8    vote of the county board."
9        The votes shall be recorded as "Yes" or "No".
10    If a majority of the electors voting on the proposition
11vote in favor of it, the county may impose the tax. A county
12may not submit more than one proposition authorized by this
13Section to the electors at any one time.
14    This additional tax may not be imposed on tangible personal
15property taxed at the 1% rate under the Retailers' Occupation
16Tax Act. Beginning December 1, 2019, this tax is not imposed on
17sales of aviation fuel unless the tax revenue is expended for
18airport-related purposes. If the county does not have an
19airport-related purpose to which it dedicates aviation fuel tax
20revenue, then aviation fuel is excluded from the tax. The
21county must comply with the certification requirements for
22airport-related purposes under Section 5-1184. For purposes of
23this Act, "airport-related purposes" has the meaning ascribed
24in Section 6z-20.2 of the State Finance Act. This exclusion for
25aviation fuel only applies for so long as the revenue use
26requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are

 

 

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1binding on the county. The tax imposed by a county under this
2Section and all civil penalties that may be assessed as an
3incident of the tax shall be collected and enforced by the
4Illinois Department of Revenue and deposited into a special
5fund created for that purpose. The certificate of registration
6that is issued by the Department to a retailer under the
7Retailers' Occupation Tax Act shall permit the retailer to
8engage in a business that is taxable without registering
9separately with the Department under an ordinance or resolution
10under this Section. The Department has full power to administer
11and enforce this Section, to collect all taxes and penalties
12due under this Section, to dispose of taxes and penalties so
13collected in the manner provided in this Section, and to
14determine all rights to credit memoranda arising on account of
15the erroneous payment of a tax or penalty under this Section.
16In the administration of and compliance with this Section, the
17Department and persons who are subject to this Section shall
18(i) have the same rights, remedies, privileges, immunities,
19powers, and duties, (ii) be subject to the same conditions,
20restrictions, limitations, penalties, and definitions of
21terms, and (iii) employ the same modes of procedure as are
22prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
231n, 2 through 2-70 (in respect to all provisions contained in
24those Sections other than the State rate of tax), 2a, 2b, 2c, 3
25(except provisions relating to transaction returns and quarter
26monthly payments, and except that the retailer's discount is

 

 

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1not allowed for taxes paid on aviation fuel that are deposited
2into the Local Government Aviation Trust Fund), 4, 5, 5a, 5b,
35c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8,
49, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
5and Section 3-7 of the Uniform Penalty and Interest Act as if
6those provisions were set forth in this Section.
7    Persons subject to any tax imposed under the authority
8granted in this Section may reimburse themselves for their
9sellers' tax liability by separately stating the tax as an
10additional charge, which charge may be stated in combination,
11in a single amount, with State tax which sellers are required
12to collect under the Use Tax Act, pursuant to such bracketed
13schedules as the Department may prescribe.
14    Whenever the Department determines that a refund should be
15made under this Section to a claimant instead of issuing a
16credit memorandum, the Department shall notify the State
17Comptroller, who shall cause the order to be drawn for the
18amount specified and to the person named in the notification
19from the Department. The refund shall be paid by the State
20Treasurer out of the County Public Safety, Public Facilities,
21Mental Health, Substance Abuse, or Transportation Retailers'
22Occupation Tax Fund.
23    (b) If a tax has been imposed under subsection (a), a
24service occupation tax shall also be imposed at the same rate
25upon all persons engaged, in the county, in the business of
26making sales of service, who, as an incident to making those

 

 

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1sales of service, transfer tangible personal property within
2the county as an incident to a sale of service. This tax may
3not be imposed on tangible personal property taxed at the 1%
4rate under the Service Occupation Tax Act. Beginning December
51, 2019, this tax is not imposed on sales of aviation fuel
6unless the tax revenue is expended for airport-related
7purposes. If the county does not have an airport-related
8purpose to which it dedicates aviation fuel tax revenue, then
9aviation fuel is excluded from the tax. The county must comply
10with the certification requirements for airport-related
11purposes under Section 5-1184. For purposes of this Act,
12"airport-related purposes" has the meaning ascribed in Section
136z-20.2 of the State Finance Act. This exclusion for aviation
14fuel only applies for so long as the revenue use requirements
15of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
16county. The tax imposed under this subsection and all civil
17penalties that may be assessed as an incident thereof shall be
18collected and enforced by the Department of Revenue. The
19Department has full power to administer and enforce this
20subsection; to collect all taxes and penalties due hereunder;
21to dispose of taxes and penalties so collected in the manner
22hereinafter provided; and to determine all rights to credit
23memoranda arising on account of the erroneous payment of tax or
24penalty hereunder. In the administration of, and compliance
25with this subsection, the Department and persons who are
26subject to this paragraph shall (i) have the same rights,

 

 

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1remedies, privileges, immunities, powers, and duties, (ii) be
2subject to the same conditions, restrictions, limitations,
3penalties, exclusions, exemptions, and definitions of terms,
4and (iii) employ the same modes of procedure as are prescribed
5in Sections 2 (except that the reference to State in the
6definition of supplier maintaining a place of business in this
7State shall mean the county), 2a, 2b, 2c, 3 through 3-50 (in
8respect to all provisions therein other than the State rate of
9tax), 4 (except that the reference to the State shall be to the
10county), 5, 7, 8 (except that the jurisdiction to which the tax
11shall be a debt to the extent indicated in that Section 8 shall
12be the county), 9 (except as to the disposition of taxes and
13penalties collected, and except that the retailer's discount is
14not allowed for taxes paid on aviation fuel that are deposited
15into the Local Government Aviation Trust Fund), 10, 11, 12
16(except the reference therein to Section 2b of the Retailers'
17Occupation Tax Act), 13 (except that any reference to the State
18shall mean the county), Section 15, 16, 17, 18, 19 and 20 of
19the Service Occupation Tax Act and Section 3-7 of the Uniform
20Penalty and Interest Act, as fully as if those provisions were
21set forth herein.
22    Persons subject to any tax imposed under the authority
23granted in this subsection may reimburse themselves for their
24serviceman's tax liability by separately stating the tax as an
25additional charge, which charge may be stated in combination,
26in a single amount, with State tax that servicemen are

 

 

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1authorized to collect under the Service Use Tax Act, in
2accordance with such bracket schedules as the Department may
3prescribe.
4    Whenever the Department determines that a refund should be
5made under this subsection to a claimant instead of issuing a
6credit memorandum, the Department shall notify the State
7Comptroller, who shall cause the warrant to be drawn for the
8amount specified, and to the person named, in the notification
9from the Department. The refund shall be paid by the State
10Treasurer out of the County Public Safety, Public Facilities,
11Mental Health, Substance Abuse, or Transportation Retailers'
12Occupation Fund.
13    Nothing in this subsection shall be construed to authorize
14the county to impose a tax upon the privilege of engaging in
15any business which under the Constitution of the United States
16may not be made the subject of taxation by the State.
17    (c) Except as otherwise provided in this paragraph, the The
18Department shall immediately pay over to the State Treasurer,
19ex officio, as trustee, all taxes and penalties collected under
20this Section to be deposited into the County Public Safety,
21Public Facilities, Mental Health, Substance Abuse, or
22Transportation Retailers' Occupation Tax Fund, which shall be
23an unappropriated trust fund held outside of the State
24treasury. Taxes and penalties collected on aviation fuel sold
25on or after December 1, 2019, shall be immediately paid over by
26the Department to the State Treasurer, ex officio, as trustee,

 

 

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1for deposit into the Local Government Aviation Trust Fund. The
2Department shall only pay moneys into the Local Government
3Aviation Trust Fund under this Act for so long as the revenue
4use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
5binding on the county.
6    As soon as possible after the first day of each month,
7beginning January 1, 2011, upon certification of the Department
8of Revenue, the Comptroller shall order transferred, and the
9Treasurer shall transfer, to the STAR Bonds Revenue Fund the
10local sales tax increment, as defined in the Innovation
11Development and Economy Act, collected under this Section
12during the second preceding calendar month for sales within a
13STAR bond district.
14    After the monthly transfer to the STAR Bonds Revenue Fund,
15on or before the 25th day of each calendar month, the
16Department shall prepare and certify to the Comptroller the
17disbursement of stated sums of money to the counties from which
18retailers have paid taxes or penalties to the Department during
19the second preceding calendar month. The amount to be paid to
20each county, and deposited by the county into its special fund
21created for the purposes of this Section, shall be the amount
22(not including credit memoranda and not including taxes and
23penalties collected on aviation fuel sold on or after December
241, 2019) collected under this Section during the second
25preceding calendar month by the Department plus an amount the
26Department determines is necessary to offset any amounts that

 

 

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1were erroneously paid to a different taxing body, and not
2including (i) an amount equal to the amount of refunds made
3during the second preceding calendar month by the Department on
4behalf of the county, (ii) any amount that the Department
5determines is necessary to offset any amounts that were payable
6to a different taxing body but were erroneously paid to the
7county, (iii) any amounts that are transferred to the STAR
8Bonds Revenue Fund, and (iv) 1.5% of the remainder, which shall
9be transferred into the Tax Compliance and Administration Fund.
10The Department, at the time of each monthly disbursement to the
11counties, shall prepare and certify to the State Comptroller
12the amount to be transferred into the Tax Compliance and
13Administration Fund under this subsection. Within 10 days after
14receipt by the Comptroller of the disbursement certification to
15the counties and the Tax Compliance and Administration Fund
16provided for in this Section to be given to the Comptroller by
17the Department, the Comptroller shall cause the orders to be
18drawn for the respective amounts in accordance with directions
19contained in the certification.
20    In addition to the disbursement required by the preceding
21paragraph, an allocation shall be made in March of each year to
22each county that received more than $500,000 in disbursements
23under the preceding paragraph in the preceding calendar year.
24The allocation shall be in an amount equal to the average
25monthly distribution made to each such county under the
26preceding paragraph during the preceding calendar year

 

 

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1(excluding the 2 months of highest receipts). The distribution
2made in March of each year subsequent to the year in which an
3allocation was made pursuant to this paragraph and the
4preceding paragraph shall be reduced by the amount allocated
5and disbursed under this paragraph in the preceding calendar
6year. The Department shall prepare and certify to the
7Comptroller for disbursement the allocations made in
8accordance with this paragraph.
9    A county may direct, by ordinance, that all or a portion of
10the taxes and penalties collected under the Special County
11Retailers' Occupation Tax For Public Safety, Public
12Facilities, Mental Health, Substance Abuse, or Transportation
13be deposited into the Transportation Development Partnership
14Trust Fund.
15    (d) For the purpose of determining the local governmental
16unit whose tax is applicable, a retail sale by a producer of
17coal or another mineral mined in Illinois is a sale at retail
18at the place where the coal or other mineral mined in Illinois
19is extracted from the earth. This paragraph does not apply to
20coal or another mineral when it is delivered or shipped by the
21seller to the purchaser at a point outside Illinois so that the
22sale is exempt under the United States Constitution as a sale
23in interstate or foreign commerce.
24    (e) Nothing in this Section shall be construed to authorize
25a county to impose a tax upon the privilege of engaging in any
26business that under the Constitution of the United States may

 

 

HB2682- 198 -LRB101 09562 HLH 54660 b

1not be made the subject of taxation by this State.
2    (e-5) If a county imposes a tax under this Section, the
3county board may, by ordinance, discontinue or lower the rate
4of the tax. If the county board lowers the tax rate or
5discontinues the tax, a referendum must be held in accordance
6with subsection (a) of this Section in order to increase the
7rate of the tax or to reimpose the discontinued tax.
8    (f) Beginning April 1, 1998 and through December 31, 2013,
9the results of any election authorizing a proposition to impose
10a tax under this Section or effecting a change in the rate of
11tax, or any ordinance lowering the rate or discontinuing the
12tax, shall be certified by the county clerk and filed with the
13Illinois Department of Revenue either (i) on or before the
14first day of April, whereupon the Department shall proceed to
15administer and enforce the tax as of the first day of July next
16following the filing; or (ii) on or before the first day of
17October, whereupon the Department shall proceed to administer
18and enforce the tax as of the first day of January next
19following the filing.
20    Beginning January 1, 2014, the results of any election
21authorizing a proposition to impose a tax under this Section or
22effecting an increase in the rate of tax, along with the
23ordinance adopted to impose the tax or increase the rate of the
24tax, or any ordinance adopted to lower the rate or discontinue
25the tax, shall be certified by the county clerk and filed with
26the Illinois Department of Revenue either (i) on or before the

 

 

HB2682- 199 -LRB101 09562 HLH 54660 b

1first day of May, whereupon the Department shall proceed to
2administer and enforce the tax as of the first day of July next
3following the adoption and filing; or (ii) on or before the
4first day of October, whereupon the Department shall proceed to
5administer and enforce the tax as of the first day of January
6next following the adoption and filing.
7    (g) When certifying the amount of a monthly disbursement to
8a county under this Section, the Department shall increase or
9decrease the amounts by an amount necessary to offset any
10miscalculation of previous disbursements. The offset amount
11shall be the amount erroneously disbursed within the previous 6
12months from the time a miscalculation is discovered.
13    (h) This Section may be cited as the "Special County
14Occupation Tax For Public Safety, Public Facilities, Mental
15Health, Substance Abuse, or Transportation Law".
16    (i) For purposes of this Section, "public safety" includes,
17but is not limited to, crime prevention, detention, fire
18fighting, police, medical, ambulance, or other emergency
19services. The county may share tax proceeds received under this
20Section for public safety purposes, including proceeds
21received before August 4, 2009 (the effective date of Public
22Act 96-124), with any fire protection district located in the
23county. For the purposes of this Section, "transportation"
24includes, but is not limited to, the construction, maintenance,
25operation, and improvement of public highways, any other
26purpose for which a county may expend funds under the Illinois

 

 

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1Highway Code, and passenger rail transportation. For the
2purposes of this Section, "public facilities purposes"
3includes, but is not limited to, the acquisition, development,
4construction, reconstruction, rehabilitation, improvement,
5financing, architectural planning, and installation of capital
6facilities consisting of buildings, structures, and durable
7equipment and for the acquisition and improvement of real
8property and interest in real property required, or expected to
9be required, in connection with the public facilities, for use
10by the county for the furnishing of governmental services to
11its citizens, including but not limited to museums and nursing
12homes.
13    (j) The Department may promulgate rules to implement Public
14Act 95-1002 only to the extent necessary to apply the existing
15rules for the Special County Retailers' Occupation Tax for
16Public Safety to this new purpose for public facilities.
17(Source: P.A. 99-4, eff. 5-31-15; 99-217, eff. 7-31-15; 99-642,
18eff. 7-28-16; 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
19100-1167, eff. 1-4-19; 100-1171, eff. 1-4-19; revised 1-9-19.)
 
20    (55 ILCS 5/5-1006.7)
21    Sec. 5-1006.7. School facility occupation taxes.
22    (a) In any county, a tax shall be imposed upon all persons
23engaged in the business of selling tangible personal property,
24other than personal property titled or registered with an
25agency of this State's government, at retail in the county on

 

 

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1the gross receipts from the sales made in the course of
2business to provide revenue to be used exclusively for school
3facility purposes (except as otherwise provided in this
4Section) if a proposition for the tax has been submitted to the
5electors of that county and approved by a majority of those
6voting on the question as provided in subsection (c). The tax
7under this Section shall be imposed only in one-quarter percent
8increments and may not exceed 1%.
9    This additional tax may not be imposed on tangible personal
10property taxed at the 1% rate under the Retailers' Occupation
11Tax Act. Beginning 194, this tax is not imposed on sales of
12aviation fuel unless the tax revenue is expended for
13airport-related purposes. If the county does not have an
14airport-related purpose to which it dedicates aviation fuel tax
15revenue, then aviation fuel is excluded from the tax. The
16county must comply with the certification requirements for
17airport-related purposes under Section 5-1184. For purposes of
18this Act, "airport-related purposes" has the meaning ascribed
19in Section 6z-20.2 of the State Finance Act. This exclusion for
20aviation fuel only applies for so long as the revenue use
21requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
22binding on the county. The Department of Revenue has full power
23to administer and enforce this subsection, to collect all taxes
24and penalties due under this subsection, to dispose of taxes
25and penalties so collected in the manner provided in this
26subsection, and to determine all rights to credit memoranda

 

 

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1arising on account of the erroneous payment of a tax or penalty
2under this subsection. The Department shall deposit all taxes
3and penalties collected under this subsection into a special
4fund created for that purpose.
5    In the administration of and compliance with this
6subsection, the Department and persons who are subject to this
7subsection (i) have the same rights, remedies, privileges,
8immunities, powers, and duties, (ii) are subject to the same
9conditions, restrictions, limitations, penalties, and
10definitions of terms, and (iii) shall employ the same modes of
11procedure as are set forth in Sections 1 through 1o, 2 through
122-70 (in respect to all provisions contained in those Sections
13other than the State rate of tax), 2a through 2h, 3 (except as
14to the disposition of taxes and penalties collected, and except
15that the retailer's discount is not allowed for taxes paid on
16aviation fuel that are deposited into the Local Government
17Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
185j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13
19of the Retailers' Occupation Tax Act and all provisions of the
20Uniform Penalty and Interest Act as if those provisions were
21set forth in this subsection.
22    The certificate of registration that is issued by the
23Department to a retailer under the Retailers' Occupation Tax
24Act permits the retailer to engage in a business that is
25taxable without registering separately with the Department
26under an ordinance or resolution under this subsection.

 

 

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1    Persons subject to any tax imposed under the authority
2granted in this subsection may reimburse themselves for their
3seller's tax liability by separately stating that tax as an
4additional charge, which may be stated in combination, in a
5single amount, with State tax that sellers are required to
6collect under the Use Tax Act, pursuant to any bracketed
7schedules set forth by the Department.
8    (b) If a tax has been imposed under subsection (a), then a
9service occupation tax must also be imposed at the same rate
10upon all persons engaged, in the county, in the business of
11making sales of service, who, as an incident to making those
12sales of service, transfer tangible personal property within
13the county as an incident to a sale of service.
14    This tax may not be imposed on tangible personal property
15taxed at the 1% rate under the Service Occupation Tax Act.
16Beginning December 1, 2019, this tax is not imposed on sales of
17aviation fuel unless the tax revenue is expended for
18airport-related purposes. If the county does not have an
19airport-related purpose to which it dedicates aviation fuel tax
20revenue, then aviation fuel is excluded from the tax. The
21county must comply with the certification requirements for
22airport-related purposes under Section 5-1184. For purposes of
23this Act, "airport-related purposes" has the meaning ascribed
24in Section 6z-20.2 of the State Finance Act. This exclusion for
25aviation fuel only applies for so long as the revenue use
26requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are

 

 

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1binding on the county.
2    The tax imposed under this subsection and all civil
3penalties that may be assessed as an incident thereof shall be
4collected and enforced by the Department and deposited into a
5special fund created for that purpose. The Department has full
6power to administer and enforce this subsection, to collect all
7taxes and penalties due under this subsection, to dispose of
8taxes and penalties so collected in the manner provided in this
9subsection, and to determine all rights to credit memoranda
10arising on account of the erroneous payment of a tax or penalty
11under this subsection.
12    In the administration of and compliance with this
13subsection, the Department and persons who are subject to this
14subsection shall (i) have the same rights, remedies,
15privileges, immunities, powers and duties, (ii) be subject to
16the same conditions, restrictions, limitations, penalties and
17definition of terms, and (iii) employ the same modes of
18procedure as are set forth in Sections 2 (except that that
19reference to State in the definition of supplier maintaining a
20place of business in this State means the county), 2a through
212d, 3 through 3-50 (in respect to all provisions contained in
22those Sections other than the State rate of tax), 4 (except
23that the reference to the State shall be to the county), 5, 7,
248 (except that the jurisdiction to which the tax is a debt to
25the extent indicated in that Section 8 is the county), 9
26(except as to the disposition of taxes and penalties collected,

 

 

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1and except that the retailer's discount is not allowed for
2taxes paid on aviation fuel that are deposited into the Local
3Government Aviation Trust Fund), 10, 11, 12 (except the
4reference therein to Section 2b of the Retailers' Occupation
5Tax Act), 13 (except that any reference to the State means the
6county), Section 15, 16, 17, 18, 19, and 20 of the Service
7Occupation Tax Act and all provisions of the Uniform Penalty
8and Interest Act, as fully as if those provisions were set
9forth herein.
10    Persons subject to any tax imposed under the authority
11granted in this subsection may reimburse themselves for their
12serviceman's tax liability by separately stating the tax as an
13additional charge, which may be stated in combination, in a
14single amount, with State tax that servicemen are authorized to
15collect under the Service Use Tax Act, pursuant to any
16bracketed schedules set forth by the Department.
17    (c) The tax under this Section may not be imposed until the
18question of imposing the tax has been submitted to the electors
19of the county at a regular election and approved by a majority
20of the electors voting on the question. For all regular
21elections held prior to August 23, 2011 (the effective date of
22Public Act 97-542), upon a resolution by the county board or a
23resolution by school district boards that represent at least
2451% of the student enrollment within the county, the county
25board must certify the question to the proper election
26authority in accordance with the Election Code.

 

 

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1    For all regular elections held prior to August 23, 2011
2(the effective date of Public Act 97-542), the election
3authority must submit the question in substantially the
4following form:
5        Shall (name of county) be authorized to impose a
6    retailers' occupation tax and a service occupation tax
7    (commonly referred to as a "sales tax") at a rate of
8    (insert rate) to be used exclusively for school facility
9    purposes?
10The election authority must record the votes as "Yes" or "No".
11    If a majority of the electors voting on the question vote
12in the affirmative, then the county may, thereafter, impose the
13tax.
14    For all regular elections held on or after August 23, 2011
15(the effective date of Public Act 97-542), the regional
16superintendent of schools for the county must, upon receipt of
17a resolution or resolutions of school district boards that
18represent more than 50% of the student enrollment within the
19county, certify the question to the proper election authority
20for submission to the electors of the county at the next
21regular election at which the question lawfully may be
22submitted to the electors, all in accordance with the Election
23Code.
24    For all regular elections held on or after August 23, 2011
25(the effective date of Public Act 97-542), the election
26authority must submit the question in substantially the

 

 

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1following form:
2        Shall a retailers' occupation tax and a service
3    occupation tax (commonly referred to as a "sales tax") be
4    imposed in (name of county) at a rate of (insert rate) to
5    be used exclusively for school facility purposes?
6The election authority must record the votes as "Yes" or "No".
7    If a majority of the electors voting on the question vote
8in the affirmative, then the tax shall be imposed at the rate
9set forth in the question.
10    For the purposes of this subsection (c), "enrollment" means
11the head count of the students residing in the county on the
12last school day of September of each year, which must be
13reported on the Illinois State Board of Education Public School
14Fall Enrollment/Housing Report.
15    (d) Except as otherwise provided, the The Department shall
16immediately pay over to the State Treasurer, ex officio, as
17trustee, all taxes and penalties collected under this Section
18to be deposited into the School Facility Occupation Tax Fund,
19which shall be an unappropriated trust fund held outside the
20State treasury.Taxes and penalties collected on aviation fuel
21sold on or after December 1, 2019, shall be immediately paid
22over by the Department to the State Treasurer, ex officio, as
23trustee, for deposit into the Local Government Aviation Trust
24Fund. The Department shall only pay moneys into the Local
25Government Aviation Trust Fund under this Act for so long as
26the revenue use requirements of 49 U.S.C. 47107(b) and 49

 

 

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1U.S.C. 47133 are binding on the county.
2    On or before the 25th day of each calendar month, the
3Department shall prepare and certify to the Comptroller the
4disbursement of stated sums of money to the regional
5superintendents of schools in counties from which retailers or
6servicemen have paid taxes or penalties to the Department
7during the second preceding calendar month. The amount to be
8paid to each regional superintendent of schools and disbursed
9to him or her in accordance with Section 3-14.31 of the School
10Code, is equal to the amount (not including credit memoranda
11and not including taxes and penalties collected on aviation
12fuel sold on or after December 1, 2019) collected from the
13county under this Section during the second preceding calendar
14month by the Department, (i) less 2% of that amount (except the
15amount collected on aviation fuel sold on or after December 1,
162019), which shall be deposited into the Tax Compliance and
17Administration Fund and shall be used by the Department,
18subject to appropriation, to cover the costs of the Department
19in administering and enforcing the provisions of this Section,
20on behalf of the county, (ii) plus an amount that the
21Department determines is necessary to offset any amounts that
22were erroneously paid to a different taxing body; (iii) less an
23amount equal to the amount of refunds made during the second
24preceding calendar month by the Department on behalf of the
25county; and (iv) less any amount that the Department determines
26is necessary to offset any amounts that were payable to a

 

 

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1different taxing body but were erroneously paid to the county.
2When certifying the amount of a monthly disbursement to a
3regional superintendent of schools under this Section, the
4Department shall increase or decrease the amounts by an amount
5necessary to offset any miscalculation of previous
6disbursements within the previous 6 months from the time a
7miscalculation is discovered.
8    Within 10 days after receipt by the Comptroller from the
9Department of the disbursement certification to the regional
10superintendents of the schools provided for in this Section,
11the Comptroller shall cause the orders to be drawn for the
12respective amounts in accordance with directions contained in
13the certification.
14    If the Department determines that a refund should be made
15under this Section to a claimant instead of issuing a credit
16memorandum, then the Department shall notify the Comptroller,
17who shall cause the order to be drawn for the amount specified
18and to the person named in the notification from the
19Department. The refund shall be paid by the Treasurer out of
20the School Facility Occupation Tax Fund.
21    (e) For the purposes of determining the local governmental
22unit whose tax is applicable, a retail sale by a producer of
23coal or another mineral mined in Illinois is a sale at retail
24at the place where the coal or other mineral mined in Illinois
25is extracted from the earth. This subsection does not apply to
26coal or another mineral when it is delivered or shipped by the

 

 

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1seller to the purchaser at a point outside Illinois so that the
2sale is exempt under the United States Constitution as a sale
3in interstate or foreign commerce.
4    (f) Nothing in this Section may be construed to authorize a
5tax to be imposed upon the privilege of engaging in any
6business that under the Constitution of the United States may
7not be made the subject of taxation by this State.
8    (g) If a county board imposes a tax under this Section
9pursuant to a referendum held before August 23, 2011 (the
10effective date of Public Act 97-542) at a rate below the rate
11set forth in the question approved by a majority of electors of
12that county voting on the question as provided in subsection
13(c), then the county board may, by ordinance, increase the rate
14of the tax up to the rate set forth in the question approved by
15a majority of electors of that county voting on the question as
16provided in subsection (c). If a county board imposes a tax
17under this Section pursuant to a referendum held before August
1823, 2011 (the effective date of Public Act 97-542), then the
19board may, by ordinance, discontinue or reduce the rate of the
20tax. If a tax is imposed under this Section pursuant to a
21referendum held on or after August 23, 2011 (the effective date
22of Public Act 97-542), then the county board may reduce or
23discontinue the tax, but only in accordance with subsection
24(h-5) of this Section. If, however, a school board issues bonds
25that are secured by the proceeds of the tax under this Section,
26then the county board may not reduce the tax rate or

 

 

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1discontinue the tax if that rate reduction or discontinuance
2would adversely affect the school board's ability to pay the
3principal and interest on those bonds as they become due or
4necessitate the extension of additional property taxes to pay
5the principal and interest on those bonds. If the county board
6reduces the tax rate or discontinues the tax, then a referendum
7must be held in accordance with subsection (c) of this Section
8in order to increase the rate of the tax or to reimpose the
9discontinued tax.
10    Until January 1, 2014, the results of any election that
11imposes, reduces, or discontinues a tax under this Section must
12be certified by the election authority, and any ordinance that
13increases or lowers the rate or discontinues the tax must be
14certified by the county clerk and, in each case, filed with the
15Illinois Department of Revenue either (i) on or before the
16first day of April, whereupon the Department shall proceed to
17administer and enforce the tax or change in the rate as of the
18first day of July next following the filing; or (ii) on or
19before the first day of October, whereupon the Department shall
20proceed to administer and enforce the tax or change in the rate
21as of the first day of January next following the filing.
22    Beginning January 1, 2014, the results of any election that
23imposes, reduces, or discontinues a tax under this Section must
24be certified by the election authority, and any ordinance that
25increases or lowers the rate or discontinues the tax must be
26certified by the county clerk and, in each case, filed with the

 

 

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1Illinois Department of Revenue either (i) on or before the
2first day of May, whereupon the Department shall proceed to
3administer and enforce the tax or change in the rate as of the
4first day of July next following the filing; or (ii) on or
5before the first day of October, whereupon the Department shall
6proceed to administer and enforce the tax or change in the rate
7as of the first day of January next following the filing.
8    (h) For purposes of this Section, "school facility
9purposes" means (i) the acquisition, development,
10construction, reconstruction, rehabilitation, improvement,
11financing, architectural planning, and installation of capital
12facilities consisting of buildings, structures, and durable
13equipment and for the acquisition and improvement of real
14property and interest in real property required, or expected to
15be required, in connection with the capital facilities and (ii)
16the payment of bonds or other obligations heretofore or
17hereafter issued, including bonds or other obligations
18heretofore or hereafter issued to refund or to continue to
19refund bonds or other obligations issued, for school facility
20purposes, provided that the taxes levied to pay those bonds are
21abated by the amount of the taxes imposed under this Section
22that are used to pay those bonds. "School-facility purposes"
23also includes fire prevention, safety, energy conservation,
24accessibility, school security, and specified repair purposes
25set forth under Section 17-2.11 of the School Code.
26    (h-5) A county board in a county where a tax has been

 

 

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1imposed under this Section pursuant to a referendum held on or
2after August 23, 2011 (the effective date of Public Act 97-542)
3may, by ordinance or resolution, submit to the voters of the
4county the question of reducing or discontinuing the tax. In
5the ordinance or resolution, the county board shall certify the
6question to the proper election authority in accordance with
7the Election Code. The election authority must submit the
8question in substantially the following form:
9        Shall the school facility retailers' occupation tax
10    and service occupation tax (commonly referred to as the
11    "school facility sales tax") currently imposed in (name of
12    county) at a rate of (insert rate) be (reduced to (insert
13    rate))(discontinued)?
14If a majority of the electors voting on the question vote in
15the affirmative, then, subject to the provisions of subsection
16(g) of this Section, the tax shall be reduced or discontinued
17as set forth in the question.
18    (i) This Section does not apply to Cook County.
19    (j) This Section may be cited as the County School Facility
20Occupation Tax Law.
21(Source: P.A. 99-143, eff. 7-27-15; 99-217, eff. 7-31-15;
2299-642, eff. 7-28-16; 100-1171, eff. 1-4-19.)
 
23    (55 ILCS 5/5-1007)  (from Ch. 34, par. 5-1007)
24    Sec. 5-1007. Home Rule County Service Occupation Tax Law.
25The corporate authorities of a home rule county may impose a

 

 

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1tax upon all persons engaged, in such county, in the business
2of making sales of service at the same rate of tax imposed
3pursuant to Section 5-1006 of the selling price of all tangible
4personal property transferred by such servicemen either in the
5form of tangible personal property or in the form of real
6estate as an incident to a sale of service. If imposed, such
7tax shall only be imposed in 1/4% increments. On and after
8September 1, 1991, this additional tax may not be imposed on
9tangible personal property taxed at the 1% rate under the
10Service Occupation Tax Act. Beginning December 1, 2019, this
11tax is not imposed on sales of aviation fuel unless the tax
12revenue is expended for airport-related purposes. If the county
13does not have an airport-related purpose to which it dedicates
14aviation fuel tax revenue, then aviation fuel is excluded from
15the tax. The county must comply with the certification
16requirements for airport-related purposes under Section
175-1184. For purposes of this Act, "airport-related purposes"
18has the meaning ascribed in Section 6z-20.2 of the State
19Finance Act. This exclusion for aviation fuel only applies for
20so long as the revenue use requirements of 49 U.S.C. 47107(b)
21and 49 U.S.C. 47133 are binding on the county. The changes made
22to this Section by this amendatory Act of the 101st General
23Assembly are a denial and limitation of home rule powers and
24functions under subsection (g) of Section 6 of Article VII of
25the Illinois Constitution. The tax imposed by a home rule
26county pursuant to this Section and all civil penalties that

 

 

HB2682- 215 -LRB101 09562 HLH 54660 b

1may be assessed as an incident thereof shall be collected and
2enforced by the State Department of Revenue. The certificate of
3registration which is issued by the Department to a retailer
4under the Retailers' Occupation Tax Act or under the Service
5Occupation Tax Act shall permit such registrant to engage in a
6business which is taxable under any ordinance or resolution
7enacted pursuant to this Section without registering
8separately with the Department under such ordinance or
9resolution or under this Section. The Department shall have
10full power to administer and enforce this Section; to collect
11all taxes and penalties due hereunder; to dispose of taxes and
12penalties so collected in the manner hereinafter provided; and
13to determine all rights to credit memoranda arising on account
14of the erroneous payment of tax or penalty hereunder. In the
15administration of, and compliance with, this Section the
16Department and persons who are subject to this Section shall
17have the same rights, remedies, privileges, immunities, powers
18and duties, and be subject to the same conditions,
19restrictions, limitations, penalties and definitions of terms,
20and employ the same modes of procedure, as are prescribed in
21Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
22provisions therein other than the State rate of tax), 4 (except
23that the reference to the State shall be to the taxing county),
245, 7, 8 (except that the jurisdiction to which the tax shall be
25a debt to the extent indicated in that Section 8 shall be the
26taxing county), 9 (except as to the disposition of taxes and

 

 

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1penalties collected, and except that the returned merchandise
2credit for this county tax may not be taken against any State
3tax, and except that the retailer's discount is not allowed for
4taxes paid on aviation fuel that are deposited into the Local
5Government Aviation Trust Fund), 10, 11, 12 (except the
6reference therein to Section 2b of the Retailers' Occupation
7Tax Act), 13 (except that any reference to the State shall mean
8the taxing county), the first paragraph of Section 15, 16, 17,
918, 19 and 20 of the Service Occupation Tax Act and Section 3-7
10of the Uniform Penalty and Interest Act, as fully as if those
11provisions were set forth herein.
12    No tax may be imposed by a home rule county pursuant to
13this Section unless such county also imposes a tax at the same
14rate pursuant to Section 5-1006.
15    Persons subject to any tax imposed pursuant to the
16authority granted in this Section may reimburse themselves for
17their serviceman's tax liability hereunder by separately
18stating such tax as an additional charge, which charge may be
19stated in combination, in a single amount, with State tax which
20servicemen are authorized to collect under the Service Use Tax
21Act, pursuant to such bracket schedules as the Department may
22prescribe.
23    Whenever the Department determines that a refund should be
24made under this Section to a claimant instead of issuing credit
25memorandum, the Department shall notify the State Comptroller,
26who shall cause the order to be drawn for the amount specified,

 

 

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1and to the person named, in such notification from the
2Department. Such refund shall be paid by the State Treasurer
3out of the home rule county retailers' occupation tax fund.
4    Except as otherwise provided in this paragraph, the The
5Department shall forthwith pay over to the State Treasurer, ex
6officio ex-officio, as trustee, all taxes and penalties
7collected hereunder for deposit into the Home Rule County
8Retailers' Occupation Tax Fund. Taxes and penalties collected
9on aviation fuel sold on or after December 1, 2019, shall be
10immediately paid over by the Department to the State Treasurer,
11ex officio, as trustee, for deposit into the Local Government
12Aviation Trust Fund. The Department shall only pay moneys into
13the Local Government Aviation Trust Fund under this Act for so
14long as the revenue use requirements of 49 U.S.C. 47107(b) and
1549 U.S.C. 47133 are binding on the county.
16    As soon as possible after the first day of each month,
17beginning January 1, 2011, upon certification of the Department
18of Revenue, the Comptroller shall order transferred, and the
19Treasurer shall transfer, to the STAR Bonds Revenue Fund the
20local sales tax increment, as defined in the Innovation
21Development and Economy Act, collected under this Section
22during the second preceding calendar month for sales within a
23STAR bond district.
24    After the monthly transfer to the STAR Bonds Revenue Fund,
25on or before the 25th day of each calendar month, the
26Department shall prepare and certify to the Comptroller the

 

 

HB2682- 218 -LRB101 09562 HLH 54660 b

1disbursement of stated sums of money to named counties, the
2counties to be those from which suppliers and servicemen have
3paid taxes or penalties hereunder to the Department during the
4second preceding calendar month. The amount to be paid to each
5county shall be the amount (not including credit memoranda and
6not including taxes and penalties collected on aviation fuel
7sold on or after December 1, 2019) collected hereunder during
8the second preceding calendar month by the Department, and not
9including an amount equal to the amount of refunds made during
10the second preceding calendar month by the Department on behalf
11of such county, and not including any amounts that are
12transferred to the STAR Bonds Revenue Fund, less 1.5% of the
13remainder, which the Department shall transfer into the Tax
14Compliance and Administration Fund. The Department, at the time
15of each monthly disbursement to the counties, shall prepare and
16certify to the State Comptroller the amount to be transferred
17into the Tax Compliance and Administration Fund under this
18Section. Within 10 days after receipt, by the Comptroller, of
19the disbursement certification to the counties and the Tax
20Compliance and Administration Fund provided for in this Section
21to be given to the Comptroller by the Department, the
22Comptroller shall cause the orders to be drawn for the
23respective amounts in accordance with the directions contained
24in such certification.
25    In addition to the disbursement required by the preceding
26paragraph, an allocation shall be made in each year to each

 

 

HB2682- 219 -LRB101 09562 HLH 54660 b

1county which received more than $500,000 in disbursements under
2the preceding paragraph in the preceding calendar year. The
3allocation shall be in an amount equal to the average monthly
4distribution made to each such county under the preceding
5paragraph during the preceding calendar year (excluding the 2
6months of highest receipts). The distribution made in March of
7each year subsequent to the year in which an allocation was
8made pursuant to this paragraph and the preceding paragraph
9shall be reduced by the amount allocated and disbursed under
10this paragraph in the preceding calendar year. The Department
11shall prepare and certify to the Comptroller for disbursement
12the allocations made in accordance with this paragraph.
13    Nothing in this Section shall be construed to authorize a
14county to impose a tax upon the privilege of engaging in any
15business which under the Constitution of the United States may
16not be made the subject of taxation by this State.
17    An ordinance or resolution imposing or discontinuing a tax
18hereunder or effecting a change in the rate thereof shall be
19adopted and a certified copy thereof filed with the Department
20on or before the first day of June, whereupon the Department
21shall proceed to administer and enforce this Section as of the
22first day of September next following such adoption and filing.
23Beginning January 1, 1992, an ordinance or resolution imposing
24or discontinuing the tax hereunder or effecting a change in the
25rate thereof shall be adopted and a certified copy thereof
26filed with the Department on or before the first day of July,

 

 

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1whereupon the Department shall proceed to administer and
2enforce this Section as of the first day of October next
3following such adoption and filing. Beginning January 1, 1993,
4an ordinance or resolution imposing or discontinuing the tax
5hereunder or effecting a change in the rate thereof shall be
6adopted and a certified copy thereof filed with the Department
7on or before the first day of October, whereupon the Department
8shall proceed to administer and enforce this Section as of the
9first day of January next following such adoption and filing.
10Beginning April 1, 1998, an ordinance or resolution imposing or
11discontinuing the tax hereunder or effecting a change in the
12rate thereof shall either (i) be adopted and a certified copy
13thereof filed with the Department on or before the first day of
14April, whereupon the Department shall proceed to administer and
15enforce this Section as of the first day of July next following
16the adoption and filing; or (ii) be adopted and a certified
17copy thereof filed with the Department on or before the first
18day of October, whereupon the Department shall proceed to
19administer and enforce this Section as of the first day of
20January next following the adoption and filing.
21    This Section shall be known and may be cited as the Home
22Rule County Service Occupation Tax Law.
23(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
24100-1171, eff. 1-4-19; revised 1-9-19.)
 
25    (55 ILCS 5/5-1008.5)

 

 

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1    Sec. 5-1008.5. Use and occupation taxes.
2    (a) The Rock Island County Board may adopt a resolution
3that authorizes a referendum on the question of whether the
4county shall be authorized to impose a retailers' occupation
5tax, a service occupation tax, and a use tax at a rate of 1/4 of
61% on behalf of the economic development activities of Rock
7Island County and communities located within the county. The
8county board shall certify the question to the proper election
9authorities who shall submit the question to the voters of the
10county at the next regularly scheduled election in accordance
11with the general election law. The question shall be in
12substantially the following form:
13        Shall Rock Island County be authorized to impose a
14    retailers' occupation tax, a service occupation tax, and a
15    use tax at the rate of 1/4 of 1% for the sole purpose of
16    economic development activities, including creation and
17    retention of job opportunities, support of affordable
18    housing opportunities, and enhancement of quality of life
19    improvements?
20    Votes shall be recorded as "yes" or "no". If a majority of
21all votes cast on the proposition are in favor of the
22proposition, the county is authorized to impose the tax.
23    (b) The county shall impose the retailers' occupation tax
24upon all persons engaged in the business of selling tangible
25personal property at retail in the county, at the rate approved
26by referendum, on the gross receipts from the sales made in the

 

 

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1course of those businesses within the county. This additional
2tax may not be imposed on tangible personal property taxed at
3the 1% rate under the Retailers' Occupation Tax Act. Beginning
4December 1, 2019, this tax is not imposed on sales of aviation
5fuel unless the tax revenue is expended for airport-related
6purposes. If the county does not have an airport-related
7purpose to which it dedicates aviation fuel tax revenue, then
8aviation fuel is excluded from the tax. The county must comply
9with the certification requirements for airport-related
10purposes under Section 5-1184. For purposes of this Act,
11"airport-related purposes" has the meaning ascribed in Section
126z-20.2 of the State Finance Act. This exclusion for aviation
13fuel only applies for so long as the revenue use requirements
14of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
15county. The tax imposed under this Section and all civil
16penalties that may be assessed as an incident of the tax shall
17be collected and enforced by the Department of Revenue. The
18Department has full power to administer and enforce this
19Section; to collect all taxes and penalties so collected in the
20manner provided in this Section; and to determine all rights to
21credit memoranda arising on account of the erroneous payment of
22tax or penalty under this Section. In the administration of,
23and compliance with, this Section, the Department and persons
24who are subject to this Section shall (i) have the same rights,
25remedies, privileges, immunities, powers and duties, (ii) be
26subject to the same conditions, restrictions, limitations,

 

 

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1penalties, exclusions, exemptions, and definitions of terms,
2and (iii) employ the same modes of procedure as are prescribed
3in Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2,
42-5, 2-5.5, 2-10 (in respect to all provisions other than the
5State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except as
6to the disposition of taxes and penalties collected and
7provisions related to quarter monthly payments , and except
8that the retailer's discount is not allowed for taxes paid on
9aviation fuel that are deposited into the Local Government
10Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j,
115k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
12Retailers' Occupation Tax Act and Section 3-7 of the Uniform
13Penalty and Interest Act, as fully as if those provisions were
14set forth in this subsection.
15    Persons subject to any tax imposed under this subsection
16may reimburse themselves for their seller's tax liability by
17separately stating the tax as an additional charge, which
18charge may be stated in combination, in a single amount, with
19State taxes that sellers are required to collect, in accordance
20with bracket schedules prescribed by the Department.
21    Whenever the Department determines that a refund should be
22made under this subsection to a claimant instead of issuing a
23credit memorandum, the Department shall notify the State
24Comptroller, who shall cause the warrant to be drawn for the
25amount specified, and to the person named, in the notification
26from the Department. The refund shall be paid by the State

 

 

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1Treasurer out of the tax fund referenced under paragraph (g) of
2this Section.
3    If a tax is imposed under this subsection (b), a tax shall
4also be imposed at the same rate under subsections (c) and (d)
5of this Section.
6    For the purpose of determining whether a tax authorized
7under this Section is applicable, a retail sale, by a producer
8of coal or another mineral mined in Illinois, is a sale at
9retail at the place where the coal or other mineral mined in
10Illinois is extracted from the earth. This paragraph does not
11apply to coal or another mineral when it is delivered or
12shipped by the seller to the purchaser at a point outside
13Illinois so that the sale is exempt under the federal
14Constitution as a sale in interstate or foreign commerce.
15    Nothing in this Section shall be construed to authorize the
16county to impose a tax upon the privilege of engaging in any
17business that under the Constitution of the United States may
18not be made the subject of taxation by this State.
19    (c) If a tax has been imposed under subsection (b), a
20service occupation tax shall also be imposed at the same rate
21upon all persons engaged, in the county, in the business of
22making sales of service, who, as an incident to making those
23sales of service, transfer tangible personal property within
24the county as an incident to a sale of service. This additional
25tax may not be imposed on tangible personal property taxed at
26the 1% rate under the Service Occupation Tax Act. Beginning

 

 

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1December 1, 2019, this tax is not imposed on sales of aviation
2fuel unless the tax revenue is expended for airport-related
3purposes. If the county does not have an airport-related
4purpose to which it dedicates aviation fuel tax revenue, then
5aviation fuel is excluded from the tax. The county must comply
6with the certification requirements for airport-related
7purposes under Section 5-1184. For purposes of this Act,
8"airport-related purposes" has the meaning ascribed in Section
96z-20.2 of the State Finance Act. This exclusion for aviation
10fuel only applies for so long as the revenue use requirements
11of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
12county. The tax imposed under this subsection and all civil
13penalties that may be assessed as an incident of the tax shall
14be collected and enforced by the Department of Revenue. The
15Department has full power to administer and enforce this
16paragraph; to collect all taxes and penalties due under this
17Section; to dispose of taxes and penalties so collected in the
18manner provided in this Section; and to determine all rights to
19credit memoranda arising on account of the erroneous payment of
20tax or penalty under this Section. In the administration of,
21and compliance with this paragraph, the Department and persons
22who are subject to this paragraph shall (i) have the same
23rights, remedies, privileges, immunities, powers, and duties,
24(ii) be subject to the same conditions, restrictions,
25limitations, penalties, exclusions, exemptions, and
26definitions of terms, and (iii) employ the same modes of

 

 

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1procedure as are prescribed in Sections 2 (except that the
2reference to State in the definition of supplier maintaining a
3place of business in this State shall mean the county), 2a, 2b,
43 through 3-55 (in respect to all provisions other than the
5State rate of tax), 4 (except that the reference to the State
6shall be to the county), 5, 7, 8 (except that the jurisdiction
7to which the tax shall be a debt to the extent indicated in
8that Section 8 shall be the county), 9 (except as to the
9disposition of taxes and penalties collected, and except that
10the returned merchandise credit for this tax may not be taken
11against any State tax, and except that the retailer's discount
12is not allowed for taxes paid on aviation fuel that are
13deposited into the Local Government Aviation Trust Fund), 11,
1412 (except the reference to Section 2b of the Retailers'
15Occupation Tax Act), 13 (except that any reference to the State
16shall mean the county), 15, 16, 17, 18, 19 and 20 of the
17Service Occupation Tax Act and Section 3-7 of the Uniform
18Penalty and Interest Act, as fully as if those provisions were
19set forth in this subsection.
20    Persons subject to any tax imposed under the authority
21granted in this subsection may reimburse themselves for their
22serviceman's tax liability by separately stating the tax as an
23additional charge, which charge may be stated in combination,
24in a single amount, with State tax that servicemen are
25authorized to collect under the Service Use Tax Act, in
26accordance with bracket schedules prescribed by the

 

 

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1Department.
2    Whenever the Department determines that a refund should be
3made under this subsection to a claimant instead of issuing a
4credit memorandum, the Department shall notify the State
5Comptroller, who shall cause the warrant to be drawn for the
6amount specified, and to the person named, in the notification
7from the Department. The refund shall be paid by the State
8Treasurer out of the tax fund referenced under paragraph (g) of
9this Section.
10    Nothing in this paragraph shall be construed to authorize
11the county to impose a tax upon the privilege of engaging in
12any business that under the Constitution of the United States
13may not be made the subject of taxation by the State.
14    (d) If a tax has been imposed under subsection (b), a use
15tax shall also be imposed at the same rate upon the privilege
16of using, in the county, any item of tangible personal property
17that is purchased outside the county at retail from a retailer,
18and that is titled or registered at a location within the
19county with an agency of this State's government. "Selling
20price" is defined as in the Use Tax Act. The tax shall be
21collected from persons whose Illinois address for titling or
22registration purposes is given as being in the county. The tax
23shall be collected by the Department of Revenue for the county.
24The tax must be paid to the State, or an exemption
25determination must be obtained from the Department of Revenue,
26before the title or certificate of registration for the

 

 

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1property may be issued. The tax or proof of exemption may be
2transmitted to the Department by way of the State agency with
3which, or the State officer with whom, the tangible personal
4property must be titled or registered if the Department and the
5State agency or State officer determine that this procedure
6will expedite the processing of applications for title or
7registration.
8    The Department has full power to administer and enforce
9this paragraph; to collect all taxes, penalties, and interest
10due under this Section; to dispose of taxes, penalties, and
11interest so collected in the manner provided in this Section;
12and to determine all rights to credit memoranda or refunds
13arising on account of the erroneous payment of tax, penalty, or
14interest under this Section. In the administration of, and
15compliance with, this subsection, the Department and persons
16who are subject to this paragraph shall (i) have the same
17rights, remedies, privileges, immunities, powers, and duties,
18(ii) be subject to the same conditions, restrictions,
19limitations, penalties, exclusions, exemptions, and
20definitions of terms, and (iii) employ the same modes of
21procedure as are prescribed in Sections 2 (except the
22definition of "retailer maintaining a place of business in this
23State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, 4, 6,
247, 8 (except that the jurisdiction to which the tax shall be a
25debt to the extent indicated in that Section 8 shall be the
26county), 9 (except provisions relating to quarter monthly

 

 

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1payments), 10, 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22
2of the Use Tax Act and Section 3-7 of the Uniform Penalty and
3Interest Act, that are not inconsistent with this paragraph, as
4fully as if those provisions were set forth in this subsection.
5    Whenever the Department determines that a refund should be
6made under this subsection to a claimant instead of issuing a
7credit memorandum, the Department shall notify the State
8Comptroller, who shall cause the order to be drawn for the
9amount specified, and to the person named, in the notification
10from the Department. The refund shall be paid by the State
11Treasurer out of the tax fund referenced under paragraph (g) of
12this Section.
13    (e) A certificate of registration issued by the State
14Department of Revenue to a retailer under the Retailers'
15Occupation Tax Act or under the Service Occupation Tax Act
16shall permit the registrant to engage in a business that is
17taxed under the tax imposed under paragraphs (b), (c), or (d)
18of this Section and no additional registration shall be
19required. A certificate issued under the Use Tax Act or the
20Service Use Tax Act shall be applicable with regard to any tax
21imposed under paragraph (c) of this Section.
22    (f) The results of any election authorizing a proposition
23to impose a tax under this Section or effecting a change in the
24rate of tax shall be certified by the proper election
25authorities and filed with the Illinois Department on or before
26the first day of October. In addition, an ordinance imposing,

 

 

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1discontinuing, or effecting a change in the rate of tax under
2this Section shall be adopted and a certified copy of the
3ordinance filed with the Department on or before the first day
4of October. After proper receipt of the certifications, the
5Department shall proceed to administer and enforce this Section
6as of the first day of January next following the adoption and
7filing.
8    (g) Except as otherwise provided in paragraph (g-2), the
9The Department of Revenue shall, upon collecting any taxes and
10penalties as provided in this Section, pay the taxes and
11penalties over to the State Treasurer as trustee for the
12county. The taxes and penalties shall be held in a trust fund
13outside the State Treasury. On or before the 25th day of each
14calendar month, the Department of Revenue shall prepare and
15certify to the Comptroller of the State of Illinois the amount
16to be paid to the county, which shall be the balance in the
17fund, less any amount determined by the Department to be
18necessary for the payment of refunds. Within 10 days after
19receipt by the Comptroller of the certification of the amount
20to be paid to the county, the Comptroller shall cause an order
21to be drawn for payment for the amount in accordance with the
22directions contained in the certification. Amounts received
23from the tax imposed under this Section shall be used only for
24the economic development activities of the county and
25communities located within the county.
26    (g-2) Taxes and penalties collected on aviation fuel sold

 

 

HB2682- 231 -LRB101 09562 HLH 54660 b

1on or after December 1, 2019, shall be immediately paid over by
2the Department to the State Treasurer, ex officio, as trustee,
3for deposit into the Local Government Aviation Trust Fund. The
4Department shall only pay moneys into the Local Government
5Aviation Trust Fund under this Act for so long as the revenue
6use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
7binding on the county.
8    (h) When certifying the amount of a monthly disbursement to
9the county under this Section, the Department shall increase or
10decrease the amounts by an amount necessary to offset any
11miscalculation of previous disbursements. The offset amount
12shall be the amount erroneously disbursed within the previous 6
13months from the time a miscalculation is discovered.
14    (i) This Section may be cited as the Rock Island County Use
15and Occupation Tax Law.
16(Source: P.A. 100-1171, eff. 1-4-19.)
 
17    (55 ILCS 5/5-1009)  (from Ch. 34, par. 5-1009)
18    Sec. 5-1009. Limitation on home rule powers. Except as
19provided in Sections 5-1006, 5-1006.5, 5-1007 and 5-1008, on
20and after September 1, 1990, no home rule county has the
21authority to impose, pursuant to its home rule authority, a
22retailer's occupation tax, service occupation tax, use tax,
23sales tax or other tax on the use, sale or purchase of tangible
24personal property based on the gross receipts from such sales
25or the selling or purchase price of said tangible personal

 

 

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1property. Notwithstanding the foregoing, this Section does not
2preempt any home rule imposed tax such as the following: (1) a
3tax on alcoholic beverages, whether based on gross receipts,
4volume sold or any other measurement; (2) a tax based on the
5number of units of cigarettes or tobacco products; (3) a tax,
6however measured, based on the use of a hotel or motel room or
7similar facility; (4) a tax, however measured, on the sale or
8transfer of real property; (5) a tax, however measured, on
9lease receipts; (6) a tax on food prepared for immediate
10consumption and on alcoholic beverages sold by a business which
11provides for on premise consumption of said food or alcoholic
12beverages; or (7) other taxes not based on the selling or
13purchase price or gross receipts from the use, sale or purchase
14of tangible personal property. This Section does not preempt a
15home rule county from imposing a tax, however measured, on the
16use, for consideration, of a parking lot, garage, or other
17parking facility.
18    On and after December 1, 2019, no home rule county has the
19authority to impose, pursuant to its home rule authority, a
20tax, however measured, on sales of aviation fuel, as defined in
21Section 3 of the Retailers' Occupation Tax Act, unless the tax
22revenue is expended for airport-related purposes. For purposes
23of this Section, "airport-related purposes" has the meaning
24ascribed in Section 6z-20.2 of the State Finance Act. Aviation
25fuel shall be excluded from tax only for so long as the revenue
26use requirements of 49 U.S.C. 47017(b) and 49 U.S.C. 47133 are

 

 

HB2682- 233 -LRB101 09562 HLH 54660 b

1binding on the county.
2    This Section is a limitation, pursuant to subsection (g) of
3Section 6 of Article VII of the Illinois Constitution, on the
4power of home rule units to tax. The changes made to this
5Section by this amendatory Act of the 101st General Assembly
6are a denial and limitation of home rule powers and functions
7under subsection (g) of Section 6 of Article VII of the
8Illinois Constitution.
9(Source: P.A. 97-1168, eff. 3-8-13; 97-1169, eff. 3-8-13.)
 
10    (55 ILCS 5/5-1035.1)  (from Ch. 34, par. 5-1035.1)
11    Sec. 5-1035.1. County Motor Fuel Tax Law. The county board
12of the counties of DuPage, Kane and McHenry may, by an
13ordinance or resolution adopted by an affirmative vote of a
14majority of the members elected or appointed to the county
15board, impose a tax upon all persons engaged in the county in
16the business of selling motor fuel, as now or hereafter defined
17in the Motor Fuel Tax Law, at retail for the operation of motor
18vehicles upon public highways or for the operation of
19recreational watercraft upon waterways. The collection of a tax
20under this Section based on gallonage of gasoline used for the
21propulsion of any aircraft is prohibited, and the collection of
22a tax based on gallonage of special fuel used for the
23propulsion of any aircraft is prohibited on and after December
241, 2019. Kane County may exempt diesel fuel from the tax
25imposed pursuant to this Section. The tax may be imposed, in

 

 

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1half-cent increments, at a rate not exceeding 4 cents per
2gallon of motor fuel sold at retail within the county for the
3purpose of use or consumption and not for the purpose of
4resale. The proceeds from the tax shall be used by the county
5solely for the purpose of operating, constructing and improving
6public highways and waterways, and acquiring real property and
7right-of-ways for public highways and waterways within the
8county imposing the tax.
9    A tax imposed pursuant to this Section, and all civil
10penalties that may be assessed as an incident thereof, shall be
11administered, collected and enforced by the Illinois
12Department of Revenue in the same manner as the tax imposed
13under the Retailers' Occupation Tax Act, as now or hereafter
14amended, insofar as may be practicable; except that in the
15event of a conflict with the provisions of this Section, this
16Section shall control. The Department of Revenue shall have
17full power: to administer and enforce this Section; to collect
18all taxes and penalties due hereunder; to dispose of taxes and
19penalties so collected in the manner hereinafter provided; and
20to determine all rights to credit memoranda arising on account
21of the erroneous payment of tax or penalty hereunder.
22    Whenever the Department determines that a refund shall be
23made under this Section to a claimant instead of issuing a
24credit memorandum, the Department shall notify the State
25Comptroller, who shall cause the order to be drawn for the
26amount specified, and to the person named, in the notification

 

 

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1from the Department. The refund shall be paid by the State
2Treasurer out of the County Option Motor Fuel Tax Fund.
3    The Department shall forthwith pay over to the State
4Treasurer, ex-officio, as trustee, all taxes and penalties
5collected hereunder, which shall be deposited into the County
6Option Motor Fuel Tax Fund, a special fund in the State
7Treasury which is hereby created. On or before the 25th day of
8each calendar month, the Department shall prepare and certify
9to the State Comptroller the disbursement of stated sums of
10money to named counties for which taxpayers have paid taxes or
11penalties hereunder to the Department during the second
12preceding calendar month. The amount to be paid to each county
13shall be the amount (not including credit memoranda) collected
14hereunder from retailers within the county during the second
15preceding calendar month by the Department, but not including
16an amount equal to the amount of refunds made during the second
17preceding calendar month by the Department on behalf of the
18county; less 2% of the balance, which sum shall be retained by
19the State Treasurer to cover the costs incurred by the
20Department in administering and enforcing the provisions of
21this Section. The Department, at the time of each monthly
22disbursement to the counties, shall prepare and certify to the
23Comptroller the amount so retained by the State Treasurer,
24which shall be transferred into the Tax Compliance and
25Administration Fund.
26    A county may direct, by ordinance, that all or a portion of

 

 

HB2682- 236 -LRB101 09562 HLH 54660 b

1the taxes and penalties collected under the County Option Motor
2Fuel Tax shall be deposited into the Transportation Development
3Partnership Trust Fund.
4    Nothing in this Section shall be construed to authorize a
5county to impose a tax upon the privilege of engaging in any
6business which under the Constitution of the United States may
7not be made the subject of taxation by this State.
8    An ordinance or resolution imposing a tax hereunder or
9effecting a change in the rate thereof shall be effective on
10the first day of the second calendar month next following the
11month in which the ordinance or resolution is adopted and a
12certified copy thereof is filed with the Department of Revenue,
13whereupon the Department of Revenue shall proceed to administer
14and enforce this Section on behalf of the county as of the
15effective date of the ordinance or resolution. Upon a change in
16rate of a tax levied hereunder, or upon the discontinuance of
17the tax, the county board of the county shall, on or not later
18than 5 days after the effective date of the ordinance or
19resolution discontinuing the tax or effecting a change in rate,
20transmit to the Department of Revenue a certified copy of the
21ordinance or resolution effecting the change or
22discontinuance.
23    This Section shall be known and may be cited as the County
24Motor Fuel Tax Law.
25(Source: P.A. 98-1049, eff. 8-25-14.)
 

 

 

HB2682- 237 -LRB101 09562 HLH 54660 b

1    (55 ILCS 5/5-1184 new)
2    Sec. 5-1184. Certification for airport-related purposes.
3On or before September, 1 2019, and on or before each April 1
4and October 1 thereafter, each county must certify to the
5Illinois Department of Transportation, in the form and manner
6required by the Department, whether the county has an
7airport-related purpose, which would allow any Retailers'
8Occupation Tax and Service Occupation Tax imposed by the county
9to include tax on aviation fuel. On or before October 1, 2019,
10and on or before each May 1 and November 1 thereafter, the
11Department of Transportation shall provide to the Department of
12Revenue, a list of units of local government which have
13certified to the Department of Transportation that they have
14airport-related purposes, which would allow any Retailers'
15Occupation Tax and Service Occupation Tax imposed by the units
16of local government to include tax on aviation fuel. All
17disputes regarding whether or not a unit of local government
18has an airport-related purpose shall be resolved by the
19Illinois Department of Transportation.
 
20    Section 45. The Illinois Municipal Code is amended by
21changing Sections 8-11-1, 8-11-1.3, 8-11-1.4, 8-11-1.6,
228-11-1.7, 8-11-5, 8-11-6a, and 11-74.3-6 and by adding Sections
238-11-22 and 11-101-3 as follows:
 
24    (65 ILCS 5/8-11-1)  (from Ch. 24, par. 8-11-1)

 

 

HB2682- 238 -LRB101 09562 HLH 54660 b

1    Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
2Act. The corporate authorities of a home rule municipality may
3impose a tax upon all persons engaged in the business of
4selling tangible personal property, other than an item of
5tangible personal property titled or registered with an agency
6of this State's government, at retail in the municipality on
7the gross receipts from these sales made in the course of such
8business. If imposed, the tax shall only be imposed in 1/4%
9increments. On and after September 1, 1991, this additional tax
10may not be imposed on tangible personal property taxed at the
111% rate under the Retailers' Occupation Tax Act. Beginning
12December 1, 2019, this tax is not imposed on sales of aviation
13fuel unless the tax revenue is expended for airport-related
14purposes. If a municipality does not have an airport-related
15purpose to which it dedicates aviation fuel tax revenue, then
16aviation fuel is excluded from the tax. Each municipality must
17comply with the certification requirements for airport-related
18purposes under Section 8-11-22. For purposes of this Act,
19"airport-related purposes" has the meaning ascribed in Section
206z-20.2 of the State Finance Act. This exclusion for aviation
21fuel only applies for so long as the revenue use requirements
22of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
23municipality. The changes made to this Section by this
24amendatory Act of the 101st General Assembly are a denial and
25limitation of home rule powers and functions under subsection
26(g) of Section 6 of Article VII of the Illinois Constitution.

 

 

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1The tax imposed by a home rule municipality under this Section
2and all civil penalties that may be assessed as an incident of
3the tax shall be collected and enforced by the State Department
4of Revenue. The certificate of registration that is issued by
5the Department to a retailer under the Retailers' Occupation
6Tax Act shall permit the retailer to engage in a business that
7is taxable under any ordinance or resolution enacted pursuant
8to this Section without registering separately with the
9Department under such ordinance or resolution or under this
10Section. The Department shall have full power to administer and
11enforce this Section; to collect all taxes and penalties due
12hereunder; to dispose of taxes and penalties so collected in
13the manner hereinafter provided; and to determine all rights to
14credit memoranda arising on account of the erroneous payment of
15tax or penalty hereunder. In the administration of, and
16compliance with, this Section the Department and persons who
17are subject to this Section shall have the same rights,
18remedies, privileges, immunities, powers and duties, and be
19subject to the same conditions, restrictions, limitations,
20penalties and definitions of terms, and employ the same modes
21of procedure, as are prescribed in Sections 1, 1a, 1d, 1e, 1f,
221i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
23provisions therein other than the State rate of tax), 2c, 3
24(except as to the disposition of taxes and penalties collected,
25and except that the retailer's discount is not allowed for
26taxes paid on aviation fuel that are deposited into the Local

 

 

HB2682- 240 -LRB101 09562 HLH 54660 b

1Government Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
25g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
3and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
4the Uniform Penalty and Interest Act, as fully as if those
5provisions were set forth herein.
6    No tax may be imposed by a home rule municipality under
7this Section unless the municipality also imposes a tax at the
8same rate under Section 8-11-5 of this Act.
9    Persons subject to any tax imposed under the authority
10granted in this Section may reimburse themselves for their
11seller's tax liability hereunder by separately stating that tax
12as an additional charge, which charge may be stated in
13combination, in a single amount, with State tax which sellers
14are required to collect under the Use Tax Act, pursuant to such
15bracket schedules as the Department may prescribe.
16    Whenever the Department determines that a refund should be
17made under this Section to a claimant instead of issuing a
18credit memorandum, the Department shall notify the State
19Comptroller, who shall cause the order to be drawn for the
20amount specified and to the person named in the notification
21from the Department. The refund shall be paid by the State
22Treasurer out of the home rule municipal retailers' occupation
23tax fund.
24    Except as otherwise provided in this paragraph, the The
25Department shall immediately pay over to the State Treasurer,
26ex officio, as trustee, all taxes and penalties collected

 

 

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1hereunder for deposit into the Home Rule Municipal Retailers'
2Occupation Tax Fund. Taxes and penalties collected on aviation
3fuel sold on or after December 1, 2019, shall be immediately
4paid over by the Department to the State Treasurer, ex officio,
5as trustee, for deposit into the Local Government Aviation
6Trust Fund. The Department shall only pay moneys into the Local
7Government Aviation Trust Fund under this Act for so long as
8the revenue use requirements of 49 U.S.C. 47107(b) and 49
9U.S.C. 47133 are binding on the State.
10    As soon as possible after the first day of each month,
11beginning January 1, 2011, upon certification of the Department
12of Revenue, the Comptroller shall order transferred, and the
13Treasurer shall transfer, to the STAR Bonds Revenue Fund the
14local sales tax increment, as defined in the Innovation
15Development and Economy Act, collected under this Section
16during the second preceding calendar month for sales within a
17STAR bond district.
18    After the monthly transfer to the STAR Bonds Revenue Fund,
19on or before the 25th day of each calendar month, the
20Department shall prepare and certify to the Comptroller the
21disbursement of stated sums of money to named municipalities,
22the municipalities to be those from which retailers have paid
23taxes or penalties hereunder to the Department during the
24second preceding calendar month. The amount to be paid to each
25municipality shall be the amount (not including credit
26memoranda and not including taxes and penalties collected on

 

 

HB2682- 242 -LRB101 09562 HLH 54660 b

1aviation fuel sold on or after December 1, 2019) collected
2hereunder during the second preceding calendar month by the
3Department plus an amount the Department determines is
4necessary to offset any amounts that were erroneously paid to a
5different taxing body, and not including an amount equal to the
6amount of refunds made during the second preceding calendar
7month by the Department on behalf of such municipality, and not
8including any amount that the Department determines is
9necessary to offset any amounts that were payable to a
10different taxing body but were erroneously paid to the
11municipality, and not including any amounts that are
12transferred to the STAR Bonds Revenue Fund, less 1.5% of the
13remainder, which the Department shall transfer into the Tax
14Compliance and Administration Fund. The Department, at the time
15of each monthly disbursement to the municipalities, shall
16prepare and certify to the State Comptroller the amount to be
17transferred into the Tax Compliance and Administration Fund
18under this Section. Within 10 days after receipt by the
19Comptroller of the disbursement certification to the
20municipalities and the Tax Compliance and Administration Fund
21provided for in this Section to be given to the Comptroller by
22the Department, the Comptroller shall cause the orders to be
23drawn for the respective amounts in accordance with the
24directions contained in the certification.
25    In addition to the disbursement required by the preceding
26paragraph and in order to mitigate delays caused by

 

 

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1distribution procedures, an allocation shall, if requested, be
2made within 10 days after January 14, 1991, and in November of
31991 and each year thereafter, to each municipality that
4received more than $500,000 during the preceding fiscal year,
5(July 1 through June 30) whether collected by the municipality
6or disbursed by the Department as required by this Section.
7Within 10 days after January 14, 1991, participating
8municipalities shall notify the Department in writing of their
9intent to participate. In addition, for the initial
10distribution, participating municipalities shall certify to
11the Department the amounts collected by the municipality for
12each month under its home rule occupation and service
13occupation tax during the period July 1, 1989 through June 30,
141990. The allocation within 10 days after January 14, 1991,
15shall be in an amount equal to the monthly average of these
16amounts, excluding the 2 months of highest receipts. The
17monthly average for the period of July 1, 1990 through June 30,
181991 will be determined as follows: the amounts collected by
19the municipality under its home rule occupation and service
20occupation tax during the period of July 1, 1990 through
21September 30, 1990, plus amounts collected by the Department
22and paid to such municipality through June 30, 1991, excluding
23the 2 months of highest receipts. The monthly average for each
24subsequent period of July 1 through June 30 shall be an amount
25equal to the monthly distribution made to each such
26municipality under the preceding paragraph during this period,

 

 

HB2682- 244 -LRB101 09562 HLH 54660 b

1excluding the 2 months of highest receipts. The distribution
2made in November 1991 and each year thereafter under this
3paragraph and the preceding paragraph shall be reduced by the
4amount allocated and disbursed under this paragraph in the
5preceding period of July 1 through June 30. The Department
6shall prepare and certify to the Comptroller for disbursement
7the allocations made in accordance with this paragraph.
8    For the purpose of determining the local governmental unit
9whose tax is applicable, a retail sale by a producer of coal or
10other mineral mined in Illinois is a sale at retail at the
11place where the coal or other mineral mined in Illinois is
12extracted from the earth. This paragraph does not apply to coal
13or other mineral when it is delivered or shipped by the seller
14to the purchaser at a point outside Illinois so that the sale
15is exempt under the United States Constitution as a sale in
16interstate or foreign commerce.
17    Nothing in this Section shall be construed to authorize a
18municipality to impose a tax upon the privilege of engaging in
19any business which under the Constitution of the United States
20may not be made the subject of taxation by this State.
21    An ordinance or resolution imposing or discontinuing a tax
22hereunder or effecting a change in the rate thereof shall be
23adopted and a certified copy thereof filed with the Department
24on or before the first day of June, whereupon the Department
25shall proceed to administer and enforce this Section as of the
26first day of September next following the adoption and filing.

 

 

HB2682- 245 -LRB101 09562 HLH 54660 b

1Beginning January 1, 1992, an ordinance or resolution imposing
2or discontinuing the tax hereunder or effecting a change in the
3rate thereof shall be adopted and a certified copy thereof
4filed with the Department on or before the first day of July,
5whereupon the Department shall proceed to administer and
6enforce this Section as of the first day of October next
7following such adoption and filing. Beginning January 1, 1993,
8an ordinance or resolution imposing or discontinuing the tax
9hereunder or effecting a change in the rate thereof shall be
10adopted and a certified copy thereof filed with the Department
11on or before the first day of October, whereupon the Department
12shall proceed to administer and enforce this Section as of the
13first day of January next following the adoption and filing.
14However, a municipality located in a county with a population
15in excess of 3,000,000 that elected to become a home rule unit
16at the general primary election in 1994 may adopt an ordinance
17or resolution imposing the tax under this Section and file a
18certified copy of the ordinance or resolution with the
19Department on or before July 1, 1994. The Department shall then
20proceed to administer and enforce this Section as of October 1,
211994. Beginning April 1, 1998, an ordinance or resolution
22imposing or discontinuing the tax hereunder or effecting a
23change in the rate thereof shall either (i) be adopted and a
24certified copy thereof filed with the Department on or before
25the first day of April, whereupon the Department shall proceed
26to administer and enforce this Section as of the first day of

 

 

HB2682- 246 -LRB101 09562 HLH 54660 b

1July next following the adoption and filing; or (ii) be adopted
2and a certified copy thereof filed with the Department on or
3before the first day of October, whereupon the Department shall
4proceed to administer and enforce this Section as of the first
5day of January next following the adoption and filing.
6    When certifying the amount of a monthly disbursement to a
7municipality under this Section, the Department shall increase
8or decrease the amount by an amount necessary to offset any
9misallocation of previous disbursements. The offset amount
10shall be the amount erroneously disbursed within the previous 6
11months from the time a misallocation is discovered.
12    Any unobligated balance remaining in the Municipal
13Retailers' Occupation Tax Fund on December 31, 1989, which fund
14was abolished by Public Act 85-1135, and all receipts of
15municipal tax as a result of audits of liability periods prior
16to January 1, 1990, shall be paid into the Local Government Tax
17Fund for distribution as provided by this Section prior to the
18enactment of Public Act 85-1135. All receipts of municipal tax
19as a result of an assessment not arising from an audit, for
20liability periods prior to January 1, 1990, shall be paid into
21the Local Government Tax Fund for distribution before July 1,
221990, as provided by this Section prior to the enactment of
23Public Act 85-1135; and on and after July 1, 1990, all such
24receipts shall be distributed as provided in Section 6z-18 of
25the State Finance Act.
26    As used in this Section, "municipal" and "municipality"

 

 

HB2682- 247 -LRB101 09562 HLH 54660 b

1means a city, village or incorporated town, including an
2incorporated town that has superseded a civil township.
3    This Section shall be known and may be cited as the Home
4Rule Municipal Retailers' Occupation Tax Act.
5(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
6100-587, eff. 6-4-18; 100-1171, eff. 1-4-19; revised 1-9-19.)
 
7    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
8    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
9Occupation Tax Act. The corporate authorities of a non-home
10rule municipality may impose a tax upon all persons engaged in
11the business of selling tangible personal property, other than
12on an item of tangible personal property which is titled and
13registered by an agency of this State's Government, at retail
14in the municipality for expenditure on public infrastructure or
15for property tax relief or both as defined in Section 8-11-1.2
16if approved by referendum as provided in Section 8-11-1.1, of
17the gross receipts from such sales made in the course of such
18business. If the tax is approved by referendum on or after July
1914, 2010 (the effective date of Public Act 96-1057), the
20corporate authorities of a non-home rule municipality may,
21until December 31, 2020, use the proceeds of the tax for
22expenditure on municipal operations, in addition to or in lieu
23of any expenditure on public infrastructure or for property tax
24relief. The tax imposed may not be more than 1% and may be
25imposed only in 1/4% increments. The tax may not be imposed on

 

 

HB2682- 248 -LRB101 09562 HLH 54660 b

1tangible personal property taxed at the 1% rate under the
2Retailers' Occupation Tax Act. Beginning December 1, 2019, this
3tax is not imposed on sales of aviation fuel unless the tax
4revenue is expended for airport-related purposes. If a
5municipality does not have an airport-related purpose to which
6it dedicates aviation fuel tax revenue, then aviation fuel is
7excluded from the tax. Each municipality must comply with the
8certification requirements for airport-related purposes under
9Section 8-11-22. For purposes of this Act, "airport-related
10purposes" has the meaning ascribed in Section 6z-20.2 of the
11State Finance Act. This exclusion for aviation fuel only
12applies for so long as the revenue use requirements of 49
13U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
14municipality. The tax imposed by a municipality pursuant to
15this Section and all civil penalties that may be assessed as an
16incident thereof shall be collected and enforced by the State
17Department of Revenue. The certificate of registration which is
18issued by the Department to a retailer under the Retailers'
19Occupation Tax Act shall permit such retailer to engage in a
20business which is taxable under any ordinance or resolution
21enacted pursuant to this Section without registering
22separately with the Department under such ordinance or
23resolution or under this Section. The Department shall have
24full power to administer and enforce this Section; to collect
25all taxes and penalties due hereunder; to dispose of taxes and
26penalties so collected in the manner hereinafter provided, and

 

 

HB2682- 249 -LRB101 09562 HLH 54660 b

1to determine all rights to credit memoranda, arising on account
2of the erroneous payment of tax or penalty hereunder. In the
3administration of, and compliance with, this Section, the
4Department and persons who are subject to this Section shall
5have the same rights, remedies, privileges, immunities, powers
6and duties, and be subject to the same conditions,
7restrictions, limitations, penalties and definitions of terms,
8and employ the same modes of procedure, as are prescribed in
9Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in
10respect to all provisions therein other than the State rate of
11tax), 2c, 3 (except as to the disposition of taxes and
12penalties collected, and except that the retailer's discount is
13not allowed for taxes paid on aviation fuel that are deposited
14into the Local Government Aviation Trust Fund), 4, 5, 5a, 5b,
155c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8,
169, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
17Section 3-7 of the Uniform Penalty and Interest Act as fully as
18if those provisions were set forth herein.
19    No municipality may impose a tax under this Section unless
20the municipality also imposes a tax at the same rate under
21Section 8-11-1.4 of this Code.
22    Persons subject to any tax imposed pursuant to the
23authority granted in this Section may reimburse themselves for
24their seller's tax liability hereunder by separately stating
25such tax as an additional charge, which charge may be stated in
26combination, in a single amount, with State tax which sellers

 

 

HB2682- 250 -LRB101 09562 HLH 54660 b

1are required to collect under the Use Tax Act, pursuant to such
2bracket schedules as the Department may prescribe.
3    Whenever the Department determines that a refund should be
4made under this Section to a claimant instead of issuing a
5credit memorandum, the Department shall notify the State
6Comptroller, who shall cause the order to be drawn for the
7amount specified, and to the person named, in such notification
8from the Department. Such refund shall be paid by the State
9Treasurer out of the non-home rule municipal retailers'
10occupation tax fund.
11    Except as otherwise provided, the The Department shall
12forthwith pay over to the State Treasurer, ex officio, as
13trustee, all taxes and penalties collected hereunder for
14deposit into the Non-Home Rule Municipal Retailers' Occupation
15Tax Fund. Taxes and penalties collected on aviation fuel sold
16on or after December 1, 2019, shall be immediately paid over by
17the Department to the State Treasurer, ex officio, as trustee,
18for deposit into the Local Government Aviation Trust Fund. The
19Department shall only pay moneys into the Local Government
20Aviation Trust Fund under this Act for so long as the revenue
21use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
22binding on the municipality.
23    As soon as possible after the first day of each month,
24beginning January 1, 2011, upon certification of the Department
25of Revenue, the Comptroller shall order transferred, and the
26Treasurer shall transfer, to the STAR Bonds Revenue Fund the

 

 

HB2682- 251 -LRB101 09562 HLH 54660 b

1local sales tax increment, as defined in the Innovation
2Development and Economy Act, collected under this Section
3during the second preceding calendar month for sales within a
4STAR bond district.
5    After the monthly transfer to the STAR Bonds Revenue Fund,
6on or before the 25th day of each calendar month, the
7Department shall prepare and certify to the Comptroller the
8disbursement of stated sums of money to named municipalities,
9the municipalities to be those from which retailers have paid
10taxes or penalties hereunder to the Department during the
11second preceding calendar month. The amount to be paid to each
12municipality shall be the amount (not including credit
13memoranda and not including taxes and penalties collected on
14aviation fuel sold on or after December 1, 2019) collected
15hereunder during the second preceding calendar month by the
16Department plus an amount the Department determines is
17necessary to offset any amounts which were erroneously paid to
18a different taxing body, and not including an amount equal to
19the amount of refunds made during the second preceding calendar
20month by the Department on behalf of such municipality, and not
21including any amount which the Department determines is
22necessary to offset any amounts which were payable to a
23different taxing body but were erroneously paid to the
24municipality, and not including any amounts that are
25transferred to the STAR Bonds Revenue Fund, less 1.5% of the
26remainder, which the Department shall transfer into the Tax

 

 

HB2682- 252 -LRB101 09562 HLH 54660 b

1Compliance and Administration Fund. The Department, at the time
2of each monthly disbursement to the municipalities, shall
3prepare and certify to the State Comptroller the amount to be
4transferred into the Tax Compliance and Administration Fund
5under this Section. Within 10 days after receipt, by the
6Comptroller, of the disbursement certification to the
7municipalities and the Tax Compliance and Administration Fund
8provided for in this Section to be given to the Comptroller by
9the Department, the Comptroller shall cause the orders to be
10drawn for the respective amounts in accordance with the
11directions contained in such certification.
12    For the purpose of determining the local governmental unit
13whose tax is applicable, a retail sale, by a producer of coal
14or other mineral mined in Illinois, is a sale at retail at the
15place where the coal or other mineral mined in Illinois is
16extracted from the earth. This paragraph does not apply to coal
17or other mineral when it is delivered or shipped by the seller
18to the purchaser at a point outside Illinois so that the sale
19is exempt under the Federal Constitution as a sale in
20interstate or foreign commerce.
21    Nothing in this Section shall be construed to authorize a
22municipality to impose a tax upon the privilege of engaging in
23any business which under the constitution of the United States
24may not be made the subject of taxation by this State.
25    When certifying the amount of a monthly disbursement to a
26municipality under this Section, the Department shall increase

 

 

HB2682- 253 -LRB101 09562 HLH 54660 b

1or decrease such amount by an amount necessary to offset any
2misallocation of previous disbursements. The offset amount
3shall be the amount erroneously disbursed within the previous 6
4months from the time a misallocation is discovered.
5    The Department of Revenue shall implement Public Act 91-649
6this amendatory Act of the 91st General Assembly so as to
7collect the tax on and after January 1, 2002.
8    As used in this Section, "municipal" and "municipality"
9means a city, village or incorporated town, including an
10incorporated town which has superseded a civil township.
11    This Section shall be known and may be cited as the
12"Non-Home Rule Municipal Retailers' Occupation Tax Act".
13(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
14100-587, eff. 6-4-18; 100-1171, eff. 1-4-19; revised 1-9-19.)
 
15    (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)
16    Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
17Tax Act. The corporate authorities of a non-home rule
18municipality may impose a tax upon all persons engaged, in such
19municipality, in the business of making sales of service for
20expenditure on public infrastructure or for property tax relief
21or both as defined in Section 8-11-1.2 if approved by
22referendum as provided in Section 8-11-1.1, of the selling
23price of all tangible personal property transferred by such
24servicemen either in the form of tangible personal property or
25in the form of real estate as an incident to a sale of service.

 

 

HB2682- 254 -LRB101 09562 HLH 54660 b

1If the tax is approved by referendum on or after July 14, 2010
2(the effective date of Public Act 96-1057), the corporate
3authorities of a non-home rule municipality may, until December
431, 2020, use the proceeds of the tax for expenditure on
5municipal operations, in addition to or in lieu of any
6expenditure on public infrastructure or for property tax
7relief. The tax imposed may not be more than 1% and may be
8imposed only in 1/4% increments. The tax may not be imposed on
9tangible personal property taxed at the 1% rate under the
10Service Occupation Tax Act. Beginning December 1, 2019, this
11tax is not imposed on sales of aviation fuel unless the tax
12revenue is expended for airport-related purposes. If a
13municipality does not have an airport-related purpose to which
14it dedicates aviation fuel tax revenue, then aviation fuel is
15excluded from the tax. Each municipality must comply with the
16certification requirements for airport-related purposes under
17Section 8-11-22. For purposes of this Act, "airport-related
18purposes" has the meaning ascribed in Section 6z-20.2 of the
19State Finance Act. This exclusion for aviation fuel only
20applies for so long as the revenue use requirements of 49
21U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
22municipality. The tax imposed by a municipality pursuant to
23this Section and all civil penalties that may be assessed as an
24incident thereof shall be collected and enforced by the State
25Department of Revenue. The certificate of registration which is
26issued by the Department to a retailer under the Retailers'

 

 

HB2682- 255 -LRB101 09562 HLH 54660 b

1Occupation Tax Act or under the Service Occupation Tax Act
2shall permit such registrant to engage in a business which is
3taxable under any ordinance or resolution enacted pursuant to
4this Section without registering separately with the
5Department under such ordinance or resolution or under this
6Section. The Department shall have full power to administer and
7enforce this Section; to collect all taxes and penalties due
8hereunder; to dispose of taxes and penalties so collected in
9the manner hereinafter provided, and to determine all rights to
10credit memoranda arising on account of the erroneous payment of
11tax or penalty hereunder. In the administration of, and
12compliance with, this Section the Department and persons who
13are subject to this Section shall have the same rights,
14remedies, privileges, immunities, powers and duties, and be
15subject to the same conditions, restrictions, limitations,
16penalties and definitions of terms, and employ the same modes
17of procedure, as are prescribed in Sections 1a-1, 2, 2a, 3
18through 3-50 (in respect to all provisions therein other than
19the State rate of tax), 4 (except that the reference to the
20State shall be to the taxing municipality), 5, 7, 8 (except
21that the jurisdiction to which the tax shall be a debt to the
22extent indicated in that Section 8 shall be the taxing
23municipality), 9 (except as to the disposition of taxes and
24penalties collected, and except that the returned merchandise
25credit for this municipal tax may not be taken against any
26State tax , and except that the retailer's discount is not

 

 

HB2682- 256 -LRB101 09562 HLH 54660 b

1allowed for taxes paid on aviation fuel that are deposited into
2the Local Government Aviation Trust Fund), 10, 11, 12 (except
3the reference therein to Section 2b of the Retailers'
4Occupation Tax Act), 13 (except that any reference to the State
5shall mean the taxing municipality), the first paragraph of
6Section 15, 16, 17, 18, 19 and 20 of the Service Occupation Tax
7Act and Section 3-7 of the Uniform Penalty and Interest Act, as
8fully as if those provisions were set forth herein.
9    No municipality may impose a tax under this Section unless
10the municipality also imposes a tax at the same rate under
11Section 8-11-1.3 of this Code.
12    Persons subject to any tax imposed pursuant to the
13authority granted in this Section may reimburse themselves for
14their serviceman's tax liability hereunder by separately
15stating such tax as an additional charge, which charge may be
16stated in combination, in a single amount, with State tax which
17servicemen are authorized to collect under the Service Use Tax
18Act, pursuant to such bracket schedules as the Department may
19prescribe.
20    Whenever the Department determines that a refund should be
21made under this Section to a claimant instead of issuing credit
22memorandum, the Department shall notify the State Comptroller,
23who shall cause the order to be drawn for the amount specified,
24and to the person named, in such notification from the
25Department. Such refund shall be paid by the State Treasurer
26out of the municipal retailers' occupation tax fund.

 

 

HB2682- 257 -LRB101 09562 HLH 54660 b

1    Except as otherwise provided in this paragraph, the The
2Department shall forthwith pay over to the State Treasurer, ex
3officio, as trustee, all taxes and penalties collected
4hereunder for deposit into the municipal retailers' occupation
5tax fund. Taxes and penalties collected on aviation fuel sold
6on or after December 1, 2019, shall be immediately paid over by
7the Department to the State Treasurer, ex officio, as trustee,
8for deposit into the Local Government Aviation Trust Fund. The
9Department shall only pay moneys into the Local Government
10Aviation Trust Fund under this Act for so long as the revenue
11use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
12binding on the municipality.
13    As soon as possible after the first day of each month,
14beginning January 1, 2011, upon certification of the Department
15of Revenue, the Comptroller shall order transferred, and the
16Treasurer shall transfer, to the STAR Bonds Revenue Fund the
17local sales tax increment, as defined in the Innovation
18Development and Economy Act, collected under this Section
19during the second preceding calendar month for sales within a
20STAR bond district.
21    After the monthly transfer to the STAR Bonds Revenue Fund,
22on or before the 25th day of each calendar month, the
23Department shall prepare and certify to the Comptroller the
24disbursement of stated sums of money to named municipalities,
25the municipalities to be those from which suppliers and
26servicemen have paid taxes or penalties hereunder to the

 

 

HB2682- 258 -LRB101 09562 HLH 54660 b

1Department during the second preceding calendar month. The
2amount to be paid to each municipality shall be the amount (not
3including credit memoranda and not including taxes and
4penalties collected on aviation fuel sold on or after December
51, 2019) collected hereunder during the second preceding
6calendar month by the Department, and not including an amount
7equal to the amount of refunds made during the second preceding
8calendar month by the Department on behalf of such
9municipality, and not including any amounts that are
10transferred to the STAR Bonds Revenue Fund, less 1.5% of the
11remainder, which the Department shall transfer into the Tax
12Compliance and Administration Fund. The Department, at the time
13of each monthly disbursement to the municipalities, shall
14prepare and certify to the State Comptroller the amount to be
15transferred into the Tax Compliance and Administration Fund
16under this Section. Within 10 days after receipt, by the
17Comptroller, of the disbursement certification to the
18municipalities, the General Revenue Fund, and the Tax
19Compliance and Administration Fund provided for in this Section
20to be given to the Comptroller by the Department, the
21Comptroller shall cause the orders to be drawn for the
22respective amounts in accordance with the directions contained
23in such certification.
24    The Department of Revenue shall implement Public Act 91-649
25this amendatory Act of the 91st General Assembly so as to
26collect the tax on and after January 1, 2002.

 

 

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1    Nothing in this Section shall be construed to authorize a
2municipality to impose a tax upon the privilege of engaging in
3any business which under the constitution of the United States
4may not be made the subject of taxation by this State.
5    As used in this Section, "municipal" or "municipality"
6means or refers to a city, village or incorporated town,
7including an incorporated town which has superseded a civil
8township.
9    This Section shall be known and may be cited as the
10"Non-Home Rule Municipal Service Occupation Tax Act".
11(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
12100-1171, eff. 1-4-19; revised 1-9-19.)
 
13    (65 ILCS 5/8-11-1.6)
14    Sec. 8-11-1.6. Non-home rule municipal retailers'
15occupation tax; municipalities between 20,000 and 25,000. The
16corporate authorities of a non-home rule municipality with a
17population of more than 20,000 but less than 25,000 that has,
18prior to January 1, 1987, established a Redevelopment Project
19Area that has been certified as a State Sales Tax Boundary and
20has issued bonds or otherwise incurred indebtedness to pay for
21costs in excess of $5,000,000, which is secured in part by a
22tax increment allocation fund, in accordance with the
23provisions of Division 11-74.4 of this Code may, by passage of
24an ordinance, impose a tax upon all persons engaged in the
25business of selling tangible personal property, other than on

 

 

HB2682- 260 -LRB101 09562 HLH 54660 b

1an item of tangible personal property that is titled and
2registered by an agency of this State's Government, at retail
3in the municipality. This tax may not be imposed on tangible
4personal property taxed at the 1% rate under the Retailers'
5Occupation Tax Act. Beginning December 1, 2017, this tax is not
6imposed on sales of aviation fuel unless the tax revenue is
7expended for airport-related purposes. If a municipality does
8not have an airport-related purpose to which it dedicates
9aviation fuel tax revenue, then aviation fuel is excluded from
10the tax. Each municipality must comply with the certification
11requirements for airport-related purposes under Section
128-11-22. For purposes of this Act, "airport-related purposes"
13has the meaning ascribed in Section 6z-20.2 of the State
14Finance Act. This exclusion for aviation fuel only applies for
15so long as the revenue use requirements of 49 U.S.C. §47107(b)
16and 49 U.S.C. §47133 are binding on the municipality. If
17imposed, the tax shall only be imposed in .25% increments of
18the gross receipts from such sales made in the course of
19business. Any tax imposed by a municipality under this Section
20and all civil penalties that may be assessed as an incident
21thereof shall be collected and enforced by the State Department
22of Revenue. An ordinance imposing a tax hereunder or effecting
23a change in the rate thereof shall be adopted and a certified
24copy thereof filed with the Department on or before the first
25day of October, whereupon the Department shall proceed to
26administer and enforce this Section as of the first day of

 

 

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1January next following such adoption and filing. The
2certificate of registration that is issued by the Department to
3a retailer under the Retailers' Occupation Tax Act shall permit
4the retailer to engage in a business that is taxable under any
5ordinance or resolution enacted under this Section without
6registering separately with the Department under the ordinance
7or resolution or under this Section. The Department shall have
8full power to administer and enforce this Section, to collect
9all taxes and penalties due hereunder, to dispose of taxes and
10penalties so collected in the manner hereinafter provided, and
11to determine all rights to credit memoranda, arising on account
12of the erroneous payment of tax or penalty hereunder. In the
13administration of, and compliance with this Section, the
14Department and persons who are subject to this Section shall
15have the same rights, remedies, privileges, immunities,
16powers, and duties, and be subject to the same conditions,
17restrictions, limitations, penalties, and definitions of
18terms, and employ the same modes of procedure, as are
19prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
20through 2-65 (in respect to all provisions therein other than
21the State rate of tax), 2c, 3 (except as to the disposition of
22taxes and penalties collected, and except that the retailer's
23discount is not allowed for taxes paid on aviation fuel that
24are deposited into the Local Government Aviation Trust Fund),
254, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b,
266c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation

 

 

HB2682- 262 -LRB101 09562 HLH 54660 b

1Tax Act and Section 3-7 of the Uniform Penalty and Interest Act
2as fully as if those provisions were set forth herein.
3    A tax may not be imposed by a municipality under this
4Section unless the municipality also imposes a tax at the same
5rate under Section 8-11-1.7 of this Act.
6    Persons subject to any tax imposed under the authority
7granted in this Section may reimburse themselves for their
8seller's tax liability hereunder by separately stating the tax
9as an additional charge, which charge may be stated in
10combination, in a single amount, with State tax which sellers
11are required to collect under the Use Tax Act, pursuant to such
12bracket schedules as the Department may prescribe.
13    Whenever the Department determines that a refund should be
14made under this Section to a claimant, instead of issuing a
15credit memorandum, the Department shall notify the State
16Comptroller, who shall cause the order to be drawn for the
17amount specified, and to the person named in the notification
18from the Department. The refund shall be paid by the State
19Treasurer out of the Non-Home Rule Municipal Retailers'
20Occupation Tax Fund, which is hereby created.
21    Except as otherwise provided in this paragraph, the The
22Department shall forthwith pay over to the State Treasurer, ex
23officio, as trustee, all taxes and penalties collected
24hereunder for deposit into the Non-Home Rule Municipal
25Retailers' Occupation Tax Fund. Taxes and penalties collected
26on aviation fuel sold on or after December 1, 2017, shall be

 

 

HB2682- 263 -LRB101 09562 HLH 54660 b

1immediately paid over by the Department to the State Treasurer,
2ex officio, as trustee, for deposit into the Local Government
3Aviation Trust Fund. The Department shall only pay moneys into
4the Local Government Aviation Trust Fund under this Act for so
5long as the revenue use requirements of 49 U.S.C. §47107(b) and
649 U.S.C. §47133 are binding on the municipality.
7    As soon as possible after the first day of each month,
8beginning January 1, 2011, upon certification of the Department
9of Revenue, the Comptroller shall order transferred, and the
10Treasurer shall transfer, to the STAR Bonds Revenue Fund the
11local sales tax increment, as defined in the Innovation
12Development and Economy Act, collected under this Section
13during the second preceding calendar month for sales within a
14STAR bond district.
15    After the monthly transfer to the STAR Bonds Revenue Fund,
16on or before the 25th day of each calendar month, the
17Department shall prepare and certify to the Comptroller the
18disbursement of stated sums of money to named municipalities,
19the municipalities to be those from which retailers have paid
20taxes or penalties hereunder to the Department during the
21second preceding calendar month. The amount to be paid to each
22municipality shall be the amount (not including credit
23memoranda and not including taxes and penalties collected on
24aviation fuel sold on or after December 1, 2017) collected
25hereunder during the second preceding calendar month by the
26Department plus an amount the Department determines is

 

 

HB2682- 264 -LRB101 09562 HLH 54660 b

1necessary to offset any amounts that were erroneously paid to a
2different taxing body, and not including an amount equal to the
3amount of refunds made during the second preceding calendar
4month by the Department on behalf of the municipality, and not
5including any amount that the Department determines is
6necessary to offset any amounts that were payable to a
7different taxing body but were erroneously paid to the
8municipality, and not including any amounts that are
9transferred to the STAR Bonds Revenue Fund, less 1.5% of the
10remainder, which the Department shall transfer into the Tax
11Compliance and Administration Fund. The Department, at the time
12of each monthly disbursement to the municipalities, shall
13prepare and certify to the State Comptroller the amount to be
14transferred into the Tax Compliance and Administration Fund
15under this Section. Within 10 days after receipt by the
16Comptroller of the disbursement certification to the
17municipalities and the Tax Compliance and Administration Fund
18provided for in this Section to be given to the Comptroller by
19the Department, the Comptroller shall cause the orders to be
20drawn for the respective amounts in accordance with the
21directions contained in the certification.
22    For the purpose of determining the local governmental unit
23whose tax is applicable, a retail sale by a producer of coal or
24other mineral mined in Illinois is a sale at retail at the
25place where the coal or other mineral mined in Illinois is
26extracted from the earth. This paragraph does not apply to coal

 

 

HB2682- 265 -LRB101 09562 HLH 54660 b

1or other mineral when it is delivered or shipped by the seller
2to the purchaser at a point outside Illinois so that the sale
3is exempt under the federal Constitution as a sale in
4interstate or foreign commerce.
5    Nothing in this Section shall be construed to authorize a
6municipality to impose a tax upon the privilege of engaging in
7any business which under the constitution of the United States
8may not be made the subject of taxation by this State.
9    When certifying the amount of a monthly disbursement to a
10municipality under this Section, the Department shall increase
11or decrease the amount by an amount necessary to offset any
12misallocation of previous disbursements. The offset amount
13shall be the amount erroneously disbursed within the previous 6
14months from the time a misallocation is discovered.
15    As used in this Section, "municipal" and "municipality"
16means a city, village, or incorporated town, including an
17incorporated town that has superseded a civil township.
18(Source: P.A. 99-217, eff. 7-31-15; 99-642, eff. 7-28-16;
19100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 100-863, eff.
208-14-18; 100-1171, eff. 1-4-19; revised 1-9-19.)
 
21    (65 ILCS 5/8-11-1.7)
22    Sec. 8-11-1.7. Non-home rule municipal service occupation
23tax; municipalities between 20,000 and 25,000. The corporate
24authorities of a non-home rule municipality with a population
25of more than 20,000 but less than 25,000 as determined by the

 

 

HB2682- 266 -LRB101 09562 HLH 54660 b

1last preceding decennial census that has, prior to January 1,
21987, established a Redevelopment Project Area that has been
3certified as a State Sales Tax Boundary and has issued bonds or
4otherwise incurred indebtedness to pay for costs in excess of
5$5,000,000, which is secured in part by a tax increment
6allocation fund, in accordance with the provisions of Division
711-74.4 of this Code may, by passage of an ordinance, impose a
8tax upon all persons engaged in the municipality in the
9business of making sales of service. If imposed, the tax shall
10only be imposed in .25% increments of the selling price of all
11tangible personal property transferred by such servicemen
12either in the form of tangible personal property or in the form
13of real estate as an incident to a sale of service. This tax
14may not be imposed on tangible personal property taxed at the
151% rate under the Service Occupation Tax Act. Beginning
16December 1, 2019, this tax is not imposed on sales of aviation
17fuel unless the tax revenue is expended for airport-related
18purposes. If a municipality does not have an airport-related
19purpose to which it dedicates aviation fuel tax revenue, then
20aviation fuel is excluded from the tax. Each municipality must
21comply with the certification requirements for airport-related
22purposes under Section 8-11-22. For purposes of this Act,
23"airport-related purposes" has the meaning ascribed in Section
246z-20.2 of the State Finance Act. This exclusion for aviation
25fuel only applies for so long as the revenue use requirements
26of 49 U.S.C. §47107(b) and 49 U.S.C. §47133 are binding on the

 

 

HB2682- 267 -LRB101 09562 HLH 54660 b

1municipality. The tax imposed by a municipality under this
2Section and all civil penalties that may be assessed as an
3incident thereof shall be collected and enforced by the State
4Department of Revenue. An ordinance imposing a tax hereunder or
5effecting a change in the rate thereof shall be adopted and a
6certified copy thereof filed with the Department on or before
7the first day of October, whereupon the Department shall
8proceed to administer and enforce this Section as of the first
9day of January next following such adoption and filing. The
10certificate of registration that is issued by the Department to
11a retailer under the Retailers' Occupation Tax Act or under the
12Service Occupation Tax Act shall permit the registrant to
13engage in a business that is taxable under any ordinance or
14resolution enacted under this Section without registering
15separately with the Department under the ordinance or
16resolution or under this Section. The Department shall have
17full power to administer and enforce this Section, to collect
18all taxes and penalties due hereunder, to dispose of taxes and
19penalties so collected in a manner hereinafter provided, and to
20determine all rights to credit memoranda arising on account of
21the erroneous payment of tax or penalty hereunder. In the
22administration of and compliance with this Section, the
23Department and persons who are subject to this Section shall
24have the same rights, remedies, privileges, immunities,
25powers, and duties, and be subject to the same conditions,
26restrictions, limitations, penalties and definitions of terms,

 

 

HB2682- 268 -LRB101 09562 HLH 54660 b

1and employ the same modes of procedure, as are prescribed in
2Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
3provisions therein other than the State rate of tax), 4 (except
4that the reference to the State shall be to the taxing
5municipality), 5, 7, 8 (except that the jurisdiction to which
6the tax shall be a debt to the extent indicated in that Section
78 shall be the taxing municipality), 9 (except as to the
8disposition of taxes and penalties collected, and except that
9the returned merchandise credit for this municipal tax may not
10be taken against any State tax, and except that the retailer's
11discount is not allowed for taxes paid on aviation fuel that
12are deposited into the Local Government Aviation Trust Fund),
1310, 11, 12, (except the reference therein to Section 2b of the
14Retailers' Occupation Tax Act), 13 (except that any reference
15to the State shall mean the taxing municipality), the first
16paragraph of Sections 15, 16, 17, 18, 19, and 20 of the Service
17Occupation Tax Act and Section 3-7 of the Uniform Penalty and
18Interest Act, as fully as if those provisions were set forth
19herein.
20    A tax may not be imposed by a municipality under this
21Section unless the municipality also imposes a tax at the same
22rate under Section 8-11-1.6 of this Act.
23    Person subject to any tax imposed under the authority
24granted in this Section may reimburse themselves for their
25servicemen's tax liability hereunder by separately stating the
26tax as an additional charge, which charge may be stated in

 

 

HB2682- 269 -LRB101 09562 HLH 54660 b

1combination, in a single amount, with State tax that servicemen
2are authorized to collect under the Service Use Tax Act, under
3such bracket schedules as the Department may prescribe.
4    Whenever the Department determines that a refund should be
5made under this Section to a claimant instead of issuing credit
6memorandum, the Department shall notify the State Comptroller,
7who shall cause the order to be drawn for the amount specified,
8and to the person named, in such notification from the
9Department. The refund shall be paid by the State Treasurer out
10of the Non-Home Rule Municipal Retailers' Occupation Tax Fund.
11    Except as otherwise provided in this paragraph, the The
12Department shall forthwith pay over to the State Treasurer, ex
13officio, as trustee, all taxes and penalties collected
14hereunder for deposit into the Non-Home Rule Municipal
15Retailers' Occupation Tax Fund. Taxes and penalties collected
16on aviation fuel sold on or after December 1, 2019, shall be
17immediately paid over by the Department to the State Treasurer,
18ex officio, as trustee, for deposit into the Local Government
19Aviation Trust Fund. The Department shall only pay moneys into
20the Local Government Aviation Trust Fund under this Act for so
21long as the revenue use requirements of 49 U.S.C. §47107(b) and
2249 U.S.C. §47133 are binding on the Municipality.
23    As soon as possible after the first day of each month,
24beginning January 1, 2011, upon certification of the Department
25of Revenue, the Comptroller shall order transferred, and the
26Treasurer shall transfer, to the STAR Bonds Revenue Fund the

 

 

HB2682- 270 -LRB101 09562 HLH 54660 b

1local sales tax increment, as defined in the Innovation
2Development and Economy Act, collected under this Section
3during the second preceding calendar month for sales within a
4STAR bond district.
5    After the monthly transfer to the STAR Bonds Revenue Fund,
6on or before the 25th day of each calendar month, the
7Department shall prepare and certify to the Comptroller the
8disbursement of stated sums of money to named municipalities,
9the municipalities to be those from which suppliers and
10servicemen have paid taxes or penalties hereunder to the
11Department during the second preceding calendar month. The
12amount to be paid to each municipality shall be the amount (not
13including credit memoranda and not including taxes and
14penalties collected on aviation fuel sold on or after December
151, 2019) collected hereunder during the second preceding
16calendar month by the Department, and not including an amount
17equal to the amount of refunds made during the second preceding
18calendar month by the Department on behalf of such
19municipality, and not including any amounts that are
20transferred to the STAR Bonds Revenue Fund, less 1.5% of the
21remainder, which the Department shall transfer into the Tax
22Compliance and Administration Fund. The Department, at the time
23of each monthly disbursement to the municipalities, shall
24prepare and certify to the State Comptroller the amount to be
25transferred into the Tax Compliance and Administration Fund
26under this Section. Within 10 days after receipt by the

 

 

HB2682- 271 -LRB101 09562 HLH 54660 b

1Comptroller of the disbursement certification to the
2municipalities, the Tax Compliance and Administration Fund,
3and the General Revenue Fund, provided for in this Section to
4be given to the Comptroller by the Department, the Comptroller
5shall cause the orders to be drawn for the respective amounts
6in accordance with the directions contained in the
7certification.
8    When certifying the amount of a monthly disbursement to a
9municipality under this Section, the Department shall increase
10or decrease the amount by an amount necessary to offset any
11misallocation of previous disbursements. The offset amount
12shall be the amount erroneously disbursed within the previous 6
13months from the time a misallocation is discovered.
14    Nothing in this Section shall be construed to authorize a
15municipality to impose a tax upon the privilege of engaging in
16any business which under the constitution of the United States
17may not be made the subject of taxation by this State.
18(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
19100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised 1-9-19.)
 
20    (65 ILCS 5/8-11-5)  (from Ch. 24, par. 8-11-5)
21    Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
22Act. The corporate authorities of a home rule municipality may
23impose a tax upon all persons engaged, in such municipality, in
24the business of making sales of service at the same rate of tax
25imposed pursuant to Section 8-11-1, of the selling price of all

 

 

HB2682- 272 -LRB101 09562 HLH 54660 b

1tangible personal property transferred by such servicemen
2either in the form of tangible personal property or in the form
3of real estate as an incident to a sale of service. If imposed,
4such tax shall only be imposed in 1/4% increments. On and after
5September 1, 1991, this additional tax may not be imposed on
6tangible personal property taxed at the 1% rate under the
7Retailers' Occupation Tax Act. Beginning December 1, 2019, this
8tax may not be imposed on sales of aviation fuel unless the tax
9revenue is expended for airport-related purposes. If a
10municipality does not have an airport-related purpose to which
11it dedicates aviation fuel tax revenue, then aviation fuel
12shall be excluded from tax. Each municipality must comply with
13the certification requirements for airport-related purposes
14under Section 8-11-22. For purposes of this Act,
15"airport-related purposes" has the meaning ascribed in Section
166z-20.2 of the State Finance Act. This exception for aviation
17fuel only applies for so long as the revenue use requirements
18of 49 U.S.C. §47107(b) and 49 U.S.C. §47133 are binding on the
19State. The changes made to this Section by this amendatory Act
20of the 101st General Assembly are a denial and limitation of
21home rule powers and functions under subsection (g) of Section
226 of Article VII of the Illinois Constitution. The tax imposed
23by a home rule municipality pursuant to this Section and all
24civil penalties that may be assessed as an incident thereof
25shall be collected and enforced by the State Department of
26Revenue. The certificate of registration which is issued by the

 

 

HB2682- 273 -LRB101 09562 HLH 54660 b

1Department to a retailer under the Retailers' Occupation Tax
2Act or under the Service Occupation Tax Act shall permit such
3registrant to engage in a business which is taxable under any
4ordinance or resolution enacted pursuant to this Section
5without registering separately with the Department under such
6ordinance or resolution or under this Section. The Department
7shall have full power to administer and enforce this Section;
8to collect all taxes and penalties due hereunder; to dispose of
9taxes and penalties so collected in the manner hereinafter
10provided, and to determine all rights to credit memoranda
11arising on account of the erroneous payment of tax or penalty
12hereunder. In the administration of, and compliance with, this
13Section the Department and persons who are subject to this
14Section shall have the same rights, remedies, privileges,
15immunities, powers and duties, and be subject to the same
16conditions, restrictions, limitations, penalties and
17definitions of terms, and employ the same modes of procedure,
18as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
19respect to all provisions therein other than the State rate of
20tax), 4 (except that the reference to the State shall be to the
21taxing municipality), 5, 7, 8 (except that the jurisdiction to
22which the tax shall be a debt to the extent indicated in that
23Section 8 shall be the taxing municipality), 9 (except as to
24the disposition of taxes and penalties collected, and except
25that the returned merchandise credit for this municipal tax may
26not be taken against any State tax), 10, 11, 12 (except the

 

 

HB2682- 274 -LRB101 09562 HLH 54660 b

1reference therein to Section 2b of the Retailers' Occupation
2Tax Act), 13 (except that any reference to the State shall mean
3the taxing municipality), the first paragraph of Section 15,
416, 17 (except that credit memoranda issued hereunder may not
5be used to discharge any State tax liability), 18, 19 and 20 of
6the Service Occupation Tax Act and Section 3-7 of the Uniform
7Penalty and Interest Act, as fully as if those provisions were
8set forth herein.
9    No tax may be imposed by a home rule municipality pursuant
10to this Section unless such municipality also imposes a tax at
11the same rate pursuant to Section 8-11-1 of this Act.
12    Persons subject to any tax imposed pursuant to the
13authority granted in this Section may reimburse themselves for
14their serviceman's tax liability hereunder by separately
15stating such tax as an additional charge, which charge may be
16stated in combination, in a single amount, with State tax which
17servicemen are authorized to collect under the Service Use Tax
18Act, pursuant to such bracket schedules as the Department may
19prescribe.
20    Whenever the Department determines that a refund should be
21made under this Section to a claimant instead of issuing credit
22memorandum, the Department shall notify the State Comptroller,
23who shall cause the order to be drawn for the amount specified,
24and to the person named, in such notification from the
25Department. Such refund shall be paid by the State Treasurer
26out of the home rule municipal retailers' occupation tax fund.

 

 

HB2682- 275 -LRB101 09562 HLH 54660 b

1    Except as otherwise provided in this paragraph, the The
2Department shall forthwith pay over to the State Treasurer, ex
3officio ex-officio, as trustee, all taxes and penalties
4collected hereunder for deposit into the Home Rule Municipal
5Retailers' Occupation Tax Fund. Taxes and penalties collected
6on aviation fuel sold on or after December 1, 2019, shall be
7immediately paid over by the Department to the State Treasurer,
8ex officio, as trustee, for deposit into the Local Government
9Aviation Trust Fund. The Department shall only pay moneys into
10the State Aviation Program Fund under this Act for so long as
11the revenue use requirements of 49 U.S.C. §47107(b) and 49
12U.S.C. §47133 are binding on the municipality.
13    As soon as possible after the first day of each month,
14beginning January 1, 2011, upon certification of the Department
15of Revenue, the Comptroller shall order transferred, and the
16Treasurer shall transfer, to the STAR Bonds Revenue Fund the
17local sales tax increment, as defined in the Innovation
18Development and Economy Act, collected under this Section
19during the second preceding calendar month for sales within a
20STAR bond district.
21    After the monthly transfer to the STAR Bonds Revenue Fund,
22on or before the 25th day of each calendar month, the
23Department shall prepare and certify to the Comptroller the
24disbursement of stated sums of money to named municipalities,
25the municipalities to be those from which suppliers and
26servicemen have paid taxes or penalties hereunder to the

 

 

HB2682- 276 -LRB101 09562 HLH 54660 b

1Department during the second preceding calendar month. The
2amount to be paid to each municipality shall be the amount (not
3including credit memoranda and not including taxes and
4penalties collected on aviation fuel sold on or after December
51, 2019) collected hereunder during the second preceding
6calendar month by the Department, and not including an amount
7equal to the amount of refunds made during the second preceding
8calendar month by the Department on behalf of such
9municipality, and not including any amounts that are
10transferred to the STAR Bonds Revenue Fund, less 1.5% of the
11remainder, which the Department shall transfer into the Tax
12Compliance and Administration Fund. The Department, at the time
13of each monthly disbursement to the municipalities, shall
14prepare and certify to the State Comptroller the amount to be
15transferred into the Tax Compliance and Administration Fund
16under this Section. Within 10 days after receipt, by the
17Comptroller, of the disbursement certification to the
18municipalities and the Tax Compliance and Administration Fund
19provided for in this Section to be given to the Comptroller by
20the Department, the Comptroller shall cause the orders to be
21drawn for the respective amounts in accordance with the
22directions contained in such certification.
23    In addition to the disbursement required by the preceding
24paragraph and in order to mitigate delays caused by
25distribution procedures, an allocation shall, if requested, be
26made within 10 days after January 14, 1991, and in November of

 

 

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11991 and each year thereafter, to each municipality that
2received more than $500,000 during the preceding fiscal year,
3(July 1 through June 30) whether collected by the municipality
4or disbursed by the Department as required by this Section.
5Within 10 days after January 14, 1991, participating
6municipalities shall notify the Department in writing of their
7intent to participate. In addition, for the initial
8distribution, participating municipalities shall certify to
9the Department the amounts collected by the municipality for
10each month under its home rule occupation and service
11occupation tax during the period July 1, 1989 through June 30,
121990. The allocation within 10 days after January 14, 1991,
13shall be in an amount equal to the monthly average of these
14amounts, excluding the 2 months of highest receipts. Monthly
15average for the period of July 1, 1990 through June 30, 1991
16will be determined as follows: the amounts collected by the
17municipality under its home rule occupation and service
18occupation tax during the period of July 1, 1990 through
19September 30, 1990, plus amounts collected by the Department
20and paid to such municipality through June 30, 1991, excluding
21the 2 months of highest receipts. The monthly average for each
22subsequent period of July 1 through June 30 shall be an amount
23equal to the monthly distribution made to each such
24municipality under the preceding paragraph during this period,
25excluding the 2 months of highest receipts. The distribution
26made in November 1991 and each year thereafter under this

 

 

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1paragraph and the preceding paragraph shall be reduced by the
2amount allocated and disbursed under this paragraph in the
3preceding period of July 1 through June 30. The Department
4shall prepare and certify to the Comptroller for disbursement
5the allocations made in accordance with this paragraph.
6    Nothing in this Section shall be construed to authorize a
7municipality to impose a tax upon the privilege of engaging in
8any business which under the constitution of the United States
9may not be made the subject of taxation by this State.
10    An ordinance or resolution imposing or discontinuing a tax
11hereunder or effecting a change in the rate thereof shall be
12adopted and a certified copy thereof filed with the Department
13on or before the first day of June, whereupon the Department
14shall proceed to administer and enforce this Section as of the
15first day of September next following such adoption and filing.
16Beginning January 1, 1992, an ordinance or resolution imposing
17or discontinuing the tax hereunder or effecting a change in the
18rate thereof shall be adopted and a certified copy thereof
19filed with the Department on or before the first day of July,
20whereupon the Department shall proceed to administer and
21enforce this Section as of the first day of October next
22following such adoption and filing. Beginning January 1, 1993,
23an ordinance or resolution imposing or discontinuing the tax
24hereunder or effecting a change in the rate thereof shall be
25adopted and a certified copy thereof filed with the Department
26on or before the first day of October, whereupon the Department

 

 

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1shall proceed to administer and enforce this Section as of the
2first day of January next following such adoption and filing.
3However, a municipality located in a county with a population
4in excess of 3,000,000 that elected to become a home rule unit
5at the general primary election in 1994 may adopt an ordinance
6or resolution imposing the tax under this Section and file a
7certified copy of the ordinance or resolution with the
8Department on or before July 1, 1994. The Department shall then
9proceed to administer and enforce this Section as of October 1,
101994. Beginning April 1, 1998, an ordinance or resolution
11imposing or discontinuing the tax hereunder or effecting a
12change in the rate thereof shall either (i) be adopted and a
13certified copy thereof filed with the Department on or before
14the first day of April, whereupon the Department shall proceed
15to administer and enforce this Section as of the first day of
16July next following the adoption and filing; or (ii) be adopted
17and a certified copy thereof filed with the Department on or
18before the first day of October, whereupon the Department shall
19proceed to administer and enforce this Section as of the first
20day of January next following the adoption and filing.
21    Any unobligated balance remaining in the Municipal
22Retailers' Occupation Tax Fund on December 31, 1989, which fund
23was abolished by Public Act 85-1135, and all receipts of
24municipal tax as a result of audits of liability periods prior
25to January 1, 1990, shall be paid into the Local Government Tax
26Fund, for distribution as provided by this Section prior to the

 

 

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1enactment of Public Act 85-1135. All receipts of municipal tax
2as a result of an assessment not arising from an audit, for
3liability periods prior to January 1, 1990, shall be paid into
4the Local Government Tax Fund for distribution before July 1,
51990, as provided by this Section prior to the enactment of
6Public Act 85-1135, and on and after July 1, 1990, all such
7receipts shall be distributed as provided in Section 6z-18 of
8the State Finance Act.
9    As used in this Section, "municipal" and "municipality"
10means a city, village or incorporated town, including an
11incorporated town which has superseded a civil township.
12    This Section shall be known and may be cited as the Home
13Rule Municipal Service Occupation Tax Act.
14(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
15100-1171, eff. 1-4-19; revised 1-9-19.)
 
16    (65 ILCS 5/8-11-6a)  (from Ch. 24, par. 8-11-6a)
17    Sec. 8-11-6a. Home rule municipalities; preemption of
18certain taxes. Except as provided in Sections 8-11-1, 8-11-5,
198-11-6, 8-11-6b, 8-11-6c, and 11-74.3-6 on and after September
201, 1990, no home rule municipality has the authority to impose,
21pursuant to its home rule authority, a retailer's occupation
22tax, service occupation tax, use tax, sales tax or other tax on
23the use, sale or purchase of tangible personal property based
24on the gross receipts from such sales or the selling or
25purchase price of said tangible personal property.

 

 

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1Notwithstanding the foregoing, this Section does not preempt
2any home rule imposed tax such as the following: (1) a tax on
3alcoholic beverages, whether based on gross receipts, volume
4sold or any other measurement; (2) a tax based on the number of
5units of cigarettes or tobacco products (provided, however,
6that a home rule municipality that has not imposed a tax based
7on the number of units of cigarettes or tobacco products before
8July 1, 1993, shall not impose such a tax after that date); (3)
9a tax, however measured, based on the use of a hotel or motel
10room or similar facility; (4) a tax, however measured, on the
11sale or transfer of real property; (5) a tax, however measured,
12on lease receipts; (6) a tax on food prepared for immediate
13consumption and on alcoholic beverages sold by a business which
14provides for on premise consumption of said food or alcoholic
15beverages; or (7) other taxes not based on the selling or
16purchase price or gross receipts from the use, sale or purchase
17of tangible personal property. This Section does not preempt a
18home rule municipality with a population of more than 2,000,000
19from imposing a tax, however measured, on the use, for
20consideration, of a parking lot, garage, or other parking
21facility. This Section is not intended to affect any existing
22tax on food and beverages prepared for immediate consumption on
23the premises where the sale occurs, or any existing tax on
24alcoholic beverages, or any existing tax imposed on the charge
25for renting a hotel or motel room, which was in effect January
2615, 1988, or any extension of the effective date of such an

 

 

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1existing tax by ordinance of the municipality imposing the tax,
2which extension is hereby authorized, in any non-home rule
3municipality in which the imposition of such a tax has been
4upheld by judicial determination, nor is this Section intended
5to preempt the authority granted by Public Act 85-1006. On and
6after December 1, 2019, no home rule municipality has the
7authority to impose, pursuant to its home rule authority, a
8tax, however measured, on sales of aviation fuel, as defined in
9Section 3 of the Retailers' Occupation Tax Act, unless the tax
10revenue is expended for airport-related purposes. For purposes
11of this Section, "airport-related purposes" has the meaning
12ascribed in Section 6z-20.2 of the State Finance Act. Aviation
13fuel shall be excluded from tax only for so long as the revenue
14use requirements of 49 U.S.C. 47017(b) and 49 U.S.C. 47133 are
15binding on the municipality. This Section is a limitation,
16pursuant to subsection (g) of Section 6 of Article VII of the
17Illinois Constitution, on the power of home rule units to tax.
18The changes made to this Section by this amendatory Act of the
19101st General Assembly are a denial and limitation of home rule
20powers and functions under subsection (g) of Section 6 of
21Article VII of the Illinois Constitution.
22(Source: P.A. 97-1168, eff. 3-8-13; 97-1169, eff. 3-8-13.)
 
23    (65 ILCS 5/8-11-22 new)
24    Sec. 8-11-22. Certification for airport-related purposes.
25On or before September 1, 2019, and on or before each April 1

 

 

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1and October 1 thereafter, each municipality (and District in
2the case of business district operating within a municipality)
3must certify to the Department of Transportation, in the form
4and manner required by the Department, whether the municipality
5has an airport-related purpose, which would allow any
6Retailers' Occupation Tax and Service Occupation Tax imposed by
7the municipality to include tax on aviation fuel. On or before
8October 1, 2019, and on or before each May 1 and November 1
9thereafter, the Department of Transportation shall provide to
10the Department of Revenue, a list of units of local government
11which have certified to the Department of Transportation that
12they have airport-related purposes, which would allow any
13Retailers' Occupation Tax and Service Occupation Tax imposed by
14the unit of local government to include tax on aviation fuel.
15All disputes regarding whether or not a unit of local
16government has an airport-related purpose shall be resolved by
17the Department of Transportation.
 
18    (65 ILCS 5/11-74.3-6)
19    Sec. 11-74.3-6. Business district revenue and obligations;
20business district tax allocation fund.
21    (a) If the corporate authorities of a municipality have
22approved a business district plan, have designated a business
23district, and have elected to impose a tax by ordinance
24pursuant to subsection (10) or (11) of Section 11-74.3-3, then
25each year after the date of the approval of the ordinance but

 

 

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1terminating upon the date all business district project costs
2and all obligations paying or reimbursing business district
3project costs, if any, have been paid, but in no event later
4than the dissolution date, all amounts generated by the
5retailers' occupation tax and service occupation tax shall be
6collected and the tax shall be enforced by the Department of
7Revenue in the same manner as all retailers' occupation taxes
8and service occupation taxes imposed in the municipality
9imposing the tax and all amounts generated by the hotel
10operators' occupation tax shall be collected and the tax shall
11be enforced by the municipality in the same manner as all hotel
12operators' occupation taxes imposed in the municipality
13imposing the tax. The corporate authorities of the municipality
14shall deposit the proceeds of the taxes imposed under
15subsections (10) and (11) of Section 11-74.3-3 into a special
16fund of the municipality called the "[Name of] Business
17District Tax Allocation Fund" for the purpose of paying or
18reimbursing business district project costs and obligations
19incurred in the payment of those costs.
20    (b) The corporate authorities of a municipality that has
21designated a business district under this Law may, by
22ordinance, impose a Business District Retailers' Occupation
23Tax upon all persons engaged in the business of selling
24tangible personal property, other than an item of tangible
25personal property titled or registered with an agency of this
26State's government, at retail in the business district at a

 

 

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1rate not to exceed 1% of the gross receipts from the sales made
2in the course of such business, to be imposed only in 0.25%
3increments. The tax may not be imposed on tangible personal
4property taxed at the rate of 1% under the Retailers'
5Occupation Tax Act. Beginning December 1, 2019, this tax is not
6imposed on sales of aviation fuel unless the tax revenue is
7expended for airport-related purposes. If the District does not
8have an airport-related purpose to which it dedicates aviation
9fuel tax revenue, then aviation fuel is excluded from the tax.
10Each municipality must comply with the certification
11requirements for airport-related purposes under Section
128-11-22. For purposes of this Act, "airport-related purposes"
13has the meaning ascribed in Section 6z-20.2 of the State
14Finance Act. This exclusion for aviation fuel only applies for
15so long as the revenue use requirements of 49 U.S.C. §47107(b)
16and 49 U.S.C. §47133 are binding on the District.
17    The tax imposed under this subsection and all civil
18penalties that may be assessed as an incident thereof shall be
19collected and enforced by the Department of Revenue. The
20certificate of registration that is issued by the Department to
21a retailer under the Retailers' Occupation Tax Act shall permit
22the retailer to engage in a business that is taxable under any
23ordinance or resolution enacted pursuant to this subsection
24without registering separately with the Department under such
25ordinance or resolution or under this subsection. The
26Department of Revenue shall have full power to administer and

 

 

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1enforce this subsection; to collect all taxes and penalties due
2under this subsection in the manner hereinafter provided; and
3to determine all rights to credit memoranda arising on account
4of the erroneous payment of tax or penalty under this
5subsection. In the administration of, and compliance with, this
6subsection, the Department and persons who are subject to this
7subsection shall have the same rights, remedies, privileges,
8immunities, powers and duties, and be subject to the same
9conditions, restrictions, limitations, penalties, exclusions,
10exemptions, and definitions of terms and employ the same modes
11of procedure, as are prescribed in Sections 1, 1a through 1o, 2
12through 2-65 (in respect to all provisions therein other than
13the State rate of tax), 2c through 2h, 3 (except as to the
14disposition of taxes and penalties collected, and except that
15the retailer's discount is not allowed for taxes paid on
16aviation fuel that are deposited into the Local Government
17Aviation Trust Fund), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k,
185l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the
19Retailers' Occupation Tax Act and all provisions of the Uniform
20Penalty and Interest Act, as fully as if those provisions were
21set forth herein.
22    Persons subject to any tax imposed under this subsection
23may reimburse themselves for their seller's tax liability under
24this subsection by separately stating the tax as an additional
25charge, which charge may be stated in combination, in a single
26amount, with State taxes that sellers are required to collect

 

 

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1under the Use Tax Act, in accordance with such bracket
2schedules as the Department may prescribe.
3    Whenever the Department determines that a refund should be
4made under this subsection to a claimant instead of issuing a
5credit memorandum, the Department shall notify the State
6Comptroller, who shall cause the order to be drawn for the
7amount specified and to the person named in the notification
8from the Department. The refund shall be paid by the State
9Treasurer out of the business district retailers' occupation
10tax fund.
11    Except as otherwise provided in this paragraph, the The
12Department shall immediately pay over to the State Treasurer,
13ex officio, as trustee, all taxes, penalties, and interest
14collected under this subsection for deposit into the business
15district retailers' occupation tax fund. Taxes and penalties
16collected on aviation fuel sold on or after December 1, 2019,
17shall be immediately paid over by the Department to the State
18Treasurer, ex officio, as trustee, for deposit into the Local
19Government Aviation Trust Fund. The Department shall only pay
20moneys into the Local Government Aviation Trust Fund under this
21Act for so long as the revenue use requirements of 49 U.S.C.
22§47107(b) and 49 U.S.C. §47133 are binding on the District.
23    As soon as possible after the first day of each month,
24beginning January 1, 2011, upon certification of the Department
25of Revenue, the Comptroller shall order transferred, and the
26Treasurer shall transfer, to the STAR Bonds Revenue Fund the

 

 

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1local sales tax increment, as defined in the Innovation
2Development and Economy Act, collected under this subsection
3during the second preceding calendar month for sales within a
4STAR bond district.
5    After the monthly transfer to the STAR Bonds Revenue Fund,
6on or before the 25th day of each calendar month, the
7Department shall prepare and certify to the Comptroller the
8disbursement of stated sums of money to named municipalities
9from the business district retailers' occupation tax fund, the
10municipalities to be those from which retailers have paid taxes
11or penalties under this subsection to the Department during the
12second preceding calendar month. The amount to be paid to each
13municipality shall be the amount (not including credit
14memoranda and not including taxes and penalties collected on
15aviation fuel sold on or after December 1, 2019) collected
16under this subsection during the second preceding calendar
17month by the Department plus an amount the Department
18determines is necessary to offset any amounts that were
19erroneously paid to a different taxing body, and not including
20an amount equal to the amount of refunds made during the second
21preceding calendar month by the Department, less 2% of that
22amount (except the amount collected on aviation fuel sold on or
23after December 1, 2017), which shall be deposited into the Tax
24Compliance and Administration Fund and shall be used by the
25Department, subject to appropriation, to cover the costs of the
26Department in administering and enforcing the provisions of

 

 

HB2682- 289 -LRB101 09562 HLH 54660 b

1this subsection, on behalf of such municipality, and not
2including any amount that the Department determines is
3necessary to offset any amounts that were payable to a
4different taxing body but were erroneously paid to the
5municipality, and not including any amounts that are
6transferred to the STAR Bonds Revenue Fund. Within 10 days
7after receipt by the Comptroller of the disbursement
8certification to the municipalities provided for in this
9subsection to be given to the Comptroller by the Department,
10the Comptroller shall cause the orders to be drawn for the
11respective amounts in accordance with the directions contained
12in the certification. The proceeds of the tax paid to
13municipalities under this subsection shall be deposited into
14the Business District Tax Allocation Fund by the municipality.
15    An ordinance imposing or discontinuing the tax under this
16subsection or effecting a change in the rate thereof shall
17either (i) be adopted and a certified copy thereof filed with
18the Department on or before the first day of April, whereupon
19the Department, if all other requirements of this subsection
20are met, shall proceed to administer and enforce this
21subsection as of the first day of July next following the
22adoption and filing; or (ii) be adopted and a certified copy
23thereof filed with the Department on or before the first day of
24October, whereupon, if all other requirements of this
25subsection are met, the Department shall proceed to administer
26and enforce this subsection as of the first day of January next

 

 

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1following the adoption and filing.
2    The Department of Revenue shall not administer or enforce
3an ordinance imposing, discontinuing, or changing the rate of
4the tax under this subsection, until the municipality also
5provides, in the manner prescribed by the Department, the
6boundaries of the business district and each address in the
7business district in such a way that the Department can
8determine by its address whether a business is located in the
9business district. The municipality must provide this boundary
10and address information to the Department on or before April 1
11for administration and enforcement of the tax under this
12subsection by the Department beginning on the following July 1
13and on or before October 1 for administration and enforcement
14of the tax under this subsection by the Department beginning on
15the following January 1. The Department of Revenue shall not
16administer or enforce any change made to the boundaries of a
17business district or address change, addition, or deletion
18until the municipality reports the boundary change or address
19change, addition, or deletion to the Department in the manner
20prescribed by the Department. The municipality must provide
21this boundary change information or address change, addition,
22or deletion to the Department on or before April 1 for
23administration and enforcement by the Department of the change
24beginning on the following July 1 and on or before October 1
25for administration and enforcement by the Department of the
26change beginning on the following January 1. The retailers in

 

 

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1the business district shall be responsible for charging the tax
2imposed under this subsection. If a retailer is incorrectly
3included or excluded from the list of those required to collect
4the tax under this subsection, both the Department of Revenue
5and the retailer shall be held harmless if they reasonably
6relied on information provided by the municipality.
7    A municipality that imposes the tax under this subsection
8must submit to the Department of Revenue any other information
9as the Department may require for the administration and
10enforcement of the tax.
11    When certifying the amount of a monthly disbursement to a
12municipality under this subsection, the Department shall
13increase or decrease the amount by an amount necessary to
14offset any misallocation of previous disbursements. The offset
15amount shall be the amount erroneously disbursed within the
16previous 6 months from the time a misallocation is discovered.
17    Nothing in this subsection shall be construed to authorize
18the municipality to impose a tax upon the privilege of engaging
19in any business which under the Constitution of the United
20States may not be made the subject of taxation by this State.
21    If a tax is imposed under this subsection (b), a tax shall
22also be imposed under subsection (c) of this Section.
23    (c) If a tax has been imposed under subsection (b), a
24Business District Service Occupation Tax shall also be imposed
25upon all persons engaged, in the business district, in the
26business of making sales of service, who, as an incident to

 

 

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1making those sales of service, transfer tangible personal
2property within the business district, either in the form of
3tangible personal property or in the form of real estate as an
4incident to a sale of service. The tax shall be imposed at the
5same rate as the tax imposed in subsection (b) and shall not
6exceed 1% of the selling price of tangible personal property so
7transferred within the business district, to be imposed only in
80.25% increments. The tax may not be imposed on tangible
9personal property taxed at the 1% rate under the Service
10Occupation Tax Act. Beginning December 1, 2019, this tax is not
11imposed on sales of aviation fuel unless the tax revenue is
12expended for airport-related purposes. If the District does not
13have an airport-related purpose to which it dedicates aviation
14fuel tax revenue, then aviation fuel is excluded from the tax.
15Each municipality must comply with the certification
16requirements for airport-related purposes under Section
178-11-22. For purposes of this Act, "airport-related purposes"
18has the meaning ascribed in Section 6z-20.2 of the State
19Finance Act. This exclusion for aviation fuel only applies for
20so long as the revenue use requirements of 49 U.S.C. §47107(b)
21and 49 U.S.C. §47133 are binding on the District.
22    The tax imposed under this subsection and all civil
23penalties that may be assessed as an incident thereof shall be
24collected and enforced by the Department of Revenue. The
25certificate of registration which is issued by the Department
26to a retailer under the Retailers' Occupation Tax Act or under

 

 

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1the Service Occupation Tax Act shall permit such registrant to
2engage in a business which is taxable under any ordinance or
3resolution enacted pursuant to this subsection without
4registering separately with the Department under such
5ordinance or resolution or under this subsection. The
6Department of Revenue shall have full power to administer and
7enforce this subsection; to collect all taxes and penalties due
8under this subsection; to dispose of taxes and penalties so
9collected in the manner hereinafter provided; and to determine
10all rights to credit memoranda arising on account of the
11erroneous payment of tax or penalty under this subsection. In
12the administration of, and compliance with this subsection, the
13Department and persons who are subject to this subsection shall
14have the same rights, remedies, privileges, immunities, powers
15and duties, and be subject to the same conditions,
16restrictions, limitations, penalties, exclusions, exemptions,
17and definitions of terms and employ the same modes of procedure
18as are prescribed in Sections 2, 2a through 2d, 3 through 3-50
19(in respect to all provisions therein other than the State rate
20of tax), 4 (except that the reference to the State shall be to
21the business district), 5, 7, 8 (except that the jurisdiction
22to which the tax shall be a debt to the extent indicated in
23that Section 8 shall be the municipality), 9 (except as to the
24disposition of taxes and penalties collected, and except that
25the returned merchandise credit for this tax may not be taken
26against any State tax, and except that the retailer's discount

 

 

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1is not allowed for taxes paid on aviation fuel that are
2deposited into the Local Government Aviation Trust Fund), 10,
311, 12 (except the reference therein to Section 2b of the
4Retailers' Occupation Tax Act), 13 (except that any reference
5to the State shall mean the municipality), the first paragraph
6of Section 15, and Sections 16, 17, 18, 19 and 20 of the
7Service Occupation Tax Act and all provisions of the Uniform
8Penalty and Interest Act, as fully as if those provisions were
9set forth herein.
10    Persons subject to any tax imposed under the authority
11granted in this subsection may reimburse themselves for their
12serviceman's tax liability hereunder by separately stating the
13tax as an additional charge, which charge may be stated in
14combination, in a single amount, with State tax that servicemen
15are authorized to collect under the Service Use Tax Act, in
16accordance with such bracket schedules as the Department may
17prescribe.
18    Whenever the Department determines that a refund should be
19made under this subsection to a claimant instead of issuing
20credit memorandum, the Department shall notify the State
21Comptroller, who shall cause the order to be drawn for the
22amount specified, and to the person named, in such notification
23from the Department. Such refund shall be paid by the State
24Treasurer out of the business district retailers' occupation
25tax fund.
26    Except as otherwise provided in this paragraph, the The

 

 

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1Department shall forthwith pay over to the State Treasurer,
2ex-officio, as trustee, all taxes, penalties, and interest
3collected under this subsection for deposit into the business
4district retailers' occupation tax fund. Taxes and penalties
5collected on aviation fuel sold on or after December 1, 2019,
6shall be immediately paid over by the Department to the State
7Treasurer, ex officio, as trustee, for deposit into the Local
8Government Aviation Trust Fund. The Department shall only pay
9moneys into the Local Government Aviation Trust Fund under this
10Act for so long as the revenue use requirements of 49 U.S.C.
11§47107(b) and 49 U.S.C. §47133 are binding on the District.
12    As soon as possible after the first day of each month,
13beginning January 1, 2011, upon certification of the Department
14of Revenue, the Comptroller shall order transferred, and the
15Treasurer shall transfer, to the STAR Bonds Revenue Fund the
16local sales tax increment, as defined in the Innovation
17Development and Economy Act, collected under this subsection
18during the second preceding calendar month for sales within a
19STAR bond district.
20    After the monthly transfer to the STAR Bonds Revenue Fund,
21on or before the 25th day of each calendar month, the
22Department shall prepare and certify to the Comptroller the
23disbursement of stated sums of money to named municipalities
24from the business district retailers' occupation tax fund, the
25municipalities to be those from which suppliers and servicemen
26have paid taxes or penalties under this subsection to the

 

 

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1Department during the second preceding calendar month. The
2amount to be paid to each municipality shall be the amount (not
3including credit memoranda and not including taxes and
4penalties collected on aviation fuel sold on or after December
51, 2019) collected under this subsection during the second
6preceding calendar month by the Department, less 2% of that
7amount (except the amount collected on aviation fuel sold on or
8after December 1, 2019), which shall be deposited into the Tax
9Compliance and Administration Fund and shall be used by the
10Department, subject to appropriation, to cover the costs of the
11Department in administering and enforcing the provisions of
12this subsection, and not including an amount equal to the
13amount of refunds made during the second preceding calendar
14month by the Department on behalf of such municipality, and not
15including any amounts that are transferred to the STAR Bonds
16Revenue Fund. Within 10 days after receipt, by the Comptroller,
17of the disbursement certification to the municipalities,
18provided for in this subsection to be given to the Comptroller
19by the Department, the Comptroller shall cause the orders to be
20drawn for the respective amounts in accordance with the
21directions contained in such certification. The proceeds of the
22tax paid to municipalities under this subsection shall be
23deposited into the Business District Tax Allocation Fund by the
24municipality.
25    An ordinance imposing or discontinuing the tax under this
26subsection or effecting a change in the rate thereof shall

 

 

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1either (i) be adopted and a certified copy thereof filed with
2the Department on or before the first day of April, whereupon
3the Department, if all other requirements of this subsection
4are met, shall proceed to administer and enforce this
5subsection as of the first day of July next following the
6adoption and filing; or (ii) be adopted and a certified copy
7thereof filed with the Department on or before the first day of
8October, whereupon, if all other conditions of this subsection
9are met, the Department shall proceed to administer and enforce
10this subsection as of the first day of January next following
11the adoption and filing.
12    The Department of Revenue shall not administer or enforce
13an ordinance imposing, discontinuing, or changing the rate of
14the tax under this subsection, until the municipality also
15provides, in the manner prescribed by the Department, the
16boundaries of the business district in such a way that the
17Department can determine by its address whether a business is
18located in the business district. The municipality must provide
19this boundary and address information to the Department on or
20before April 1 for administration and enforcement of the tax
21under this subsection by the Department beginning on the
22following July 1 and on or before October 1 for administration
23and enforcement of the tax under this subsection by the
24Department beginning on the following January 1. The Department
25of Revenue shall not administer or enforce any change made to
26the boundaries of a business district or address change,

 

 

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1addition, or deletion until the municipality reports the
2boundary change or address change, addition, or deletion to the
3Department in the manner prescribed by the Department. The
4municipality must provide this boundary change information or
5address change, addition, or deletion to the Department on or
6before April 1 for administration and enforcement by the
7Department of the change beginning on the following July 1 and
8on or before October 1 for administration and enforcement by
9the Department of the change beginning on the following January
101. The retailers in the business district shall be responsible
11for charging the tax imposed under this subsection. If a
12retailer is incorrectly included or excluded from the list of
13those required to collect the tax under this subsection, both
14the Department of Revenue and the retailer shall be held
15harmless if they reasonably relied on information provided by
16the municipality.
17    A municipality that imposes the tax under this subsection
18must submit to the Department of Revenue any other information
19as the Department may require for the administration and
20enforcement of the tax.
21    Nothing in this subsection shall be construed to authorize
22the municipality to impose a tax upon the privilege of engaging
23in any business which under the Constitution of the United
24States may not be made the subject of taxation by the State.
25    If a tax is imposed under this subsection (c), a tax shall
26also be imposed under subsection (b) of this Section.

 

 

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1    (d) By ordinance, a municipality that has designated a
2business district under this Law may impose an occupation tax
3upon all persons engaged in the business district in the
4business of renting, leasing, or letting rooms in a hotel, as
5defined in the Hotel Operators' Occupation Tax Act, at a rate
6not to exceed 1% of the gross rental receipts from the renting,
7leasing, or letting of hotel rooms within the business
8district, to be imposed only in 0.25% increments, excluding,
9however, from gross rental receipts the proceeds of renting,
10leasing, or letting to permanent residents of a hotel, as
11defined in the Hotel Operators' Occupation Tax Act, and
12proceeds from the tax imposed under subsection (c) of Section
1313 of the Metropolitan Pier and Exposition Authority Act.
14    The tax imposed by the municipality under this subsection
15and all civil penalties that may be assessed as an incident to
16that tax shall be collected and enforced by the municipality
17imposing the tax. The municipality shall have full power to
18administer and enforce this subsection, to collect all taxes
19and penalties due under this subsection, to dispose of taxes
20and penalties so collected in the manner provided in this
21subsection, and to determine all rights to credit memoranda
22arising on account of the erroneous payment of tax or penalty
23under this subsection. In the administration of and compliance
24with this subsection, the municipality and persons who are
25subject to this subsection shall have the same rights,
26remedies, privileges, immunities, powers, and duties, shall be

 

 

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1subject to the same conditions, restrictions, limitations,
2penalties, and definitions of terms, and shall employ the same
3modes of procedure as are employed with respect to a tax
4adopted by the municipality under Section 8-3-14 of this Code.
5    Persons subject to any tax imposed under the authority
6granted in this subsection may reimburse themselves for their
7tax liability for that tax by separately stating that tax as an
8additional charge, which charge may be stated in combination,
9in a single amount, with State taxes imposed under the Hotel
10Operators' Occupation Tax Act, and with any other tax.
11    Nothing in this subsection shall be construed to authorize
12a municipality to impose a tax upon the privilege of engaging
13in any business which under the Constitution of the United
14States may not be made the subject of taxation by this State.
15    The proceeds of the tax imposed under this subsection shall
16be deposited into the Business District Tax Allocation Fund.
17    (e) Obligations secured by the Business District Tax
18Allocation Fund may be issued to provide for the payment or
19reimbursement of business district project costs. Those
20obligations, when so issued, shall be retired in the manner
21provided in the ordinance authorizing the issuance of those
22obligations by the receipts of taxes imposed pursuant to
23subsections (10) and (11) of Section 11-74.3-3 and by other
24revenue designated or pledged by the municipality. A
25municipality may in the ordinance pledge, for any period of
26time up to and including the dissolution date, all or any part

 

 

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1of the funds in and to be deposited in the Business District
2Tax Allocation Fund to the payment of business district project
3costs and obligations. Whenever a municipality pledges all of
4the funds to the credit of a business district tax allocation
5fund to secure obligations issued or to be issued to pay or
6reimburse business district project costs, the municipality
7may specifically provide that funds remaining to the credit of
8such business district tax allocation fund after the payment of
9such obligations shall be accounted for annually and shall be
10deemed to be "surplus" funds, and such "surplus" funds shall be
11expended by the municipality for any business district project
12cost as approved in the business district plan. Whenever a
13municipality pledges less than all of the monies to the credit
14of a business district tax allocation fund to secure
15obligations issued or to be issued to pay or reimburse business
16district project costs, the municipality shall provide that
17monies to the credit of the business district tax allocation
18fund and not subject to such pledge or otherwise encumbered or
19required for payment of contractual obligations for specific
20business district project costs shall be calculated annually
21and shall be deemed to be "surplus" funds, and such "surplus"
22funds shall be expended by the municipality for any business
23district project cost as approved in the business district
24plan.
25    No obligation issued pursuant to this Law and secured by a
26pledge of all or any portion of any revenues received or to be

 

 

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1received by the municipality from the imposition of taxes
2pursuant to subsection (10) of Section 11-74.3-3, shall be
3deemed to constitute an economic incentive agreement under
4Section 8-11-20, notwithstanding the fact that such pledge
5provides for the sharing, rebate, or payment of retailers'
6occupation taxes or service occupation taxes imposed pursuant
7to subsection (10) of Section 11-74.3-3 and received or to be
8received by the municipality from the development or
9redevelopment of properties in the business district.
10    Without limiting the foregoing in this Section, the
11municipality may further secure obligations secured by the
12business district tax allocation fund with a pledge, for a
13period not greater than the term of the obligations and in any
14case not longer than the dissolution date, of any part or any
15combination of the following: (i) net revenues of all or part
16of any business district project; (ii) taxes levied or imposed
17by the municipality on any or all property in the municipality,
18including, specifically, taxes levied or imposed by the
19municipality in a special service area pursuant to the Special
20Service Area Tax Law; (iii) the full faith and credit of the
21municipality; (iv) a mortgage on part or all of the business
22district project; or (v) any other taxes or anticipated
23receipts that the municipality may lawfully pledge.
24    Such obligations may be issued in one or more series, bear
25such date or dates, become due at such time or times as therein
26provided, but in any case not later than (i) 20 years after the

 

 

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1date of issue or (ii) the dissolution date, whichever is
2earlier, bear interest payable at such intervals and at such
3rate or rates as set forth therein, except as may be limited by
4applicable law, which rate or rates may be fixed or variable,
5be in such denominations, be in such form, either coupon,
6registered, or book-entry, carry such conversion, registration
7and exchange privileges, be subject to defeasance upon such
8terms, have such rank or priority, be executed in such manner,
9be payable in such medium or payment at such place or places
10within or without the State, make provision for a corporate
11trustee within or without the State with respect to such
12obligations, prescribe the rights, powers, and duties thereof
13to be exercised for the benefit of the municipality and the
14benefit of the owners of such obligations, provide for the
15holding in trust, investment, and use of moneys, funds, and
16accounts held under an ordinance, provide for assignment of and
17direct payment of the moneys to pay such obligations or to be
18deposited into such funds or accounts directly to such trustee,
19be subject to such terms of redemption with or without premium,
20and be sold at such price, all as the corporate authorities
21shall determine. No referendum approval of the electors shall
22be required as a condition to the issuance of obligations
23pursuant to this Law except as provided in this Section.
24    In the event the municipality authorizes the issuance of
25obligations pursuant to the authority of this Law secured by
26the full faith and credit of the municipality, or pledges ad

 

 

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1valorem taxes pursuant to this subsection, which obligations
2are other than obligations which may be issued under home rule
3powers provided by Section 6 of Article VII of the Illinois
4Constitution or which ad valorem taxes are other than ad
5valorem taxes which may be pledged under home rule powers
6provided by Section 6 of Article VII of the Illinois
7Constitution or which are levied in a special service area
8pursuant to the Special Service Area Tax Law, the ordinance
9authorizing the issuance of those obligations or pledging those
10taxes shall be published within 10 days after the ordinance has
11been adopted, in a newspaper having a general circulation
12within the municipality. The publication of the ordinance shall
13be accompanied by a notice of (i) the specific number of voters
14required to sign a petition requesting the question of the
15issuance of the obligations or pledging such ad valorem taxes
16to be submitted to the electors; (ii) the time within which the
17petition must be filed; and (iii) the date of the prospective
18referendum. The municipal clerk shall provide a petition form
19to any individual requesting one.
20    If no petition is filed with the municipal clerk, as
21hereinafter provided in this Section, within 21 days after the
22publication of the ordinance, the ordinance shall be in effect.
23However, if within that 21-day period a petition is filed with
24the municipal clerk, signed by electors numbering not less than
2515% of the number of electors voting for the mayor or president
26at the last general municipal election, asking that the

 

 

HB2682- 305 -LRB101 09562 HLH 54660 b

1question of issuing obligations using full faith and credit of
2the municipality as security for the cost of paying or
3reimbursing business district project costs, or of pledging
4such ad valorem taxes for the payment of those obligations, or
5both, be submitted to the electors of the municipality, the
6municipality shall not be authorized to issue obligations of
7the municipality using the full faith and credit of the
8municipality as security or pledging such ad valorem taxes for
9the payment of those obligations, or both, until the
10proposition has been submitted to and approved by a majority of
11the voters voting on the proposition at a regularly scheduled
12election. The municipality shall certify the proposition to the
13proper election authorities for submission in accordance with
14the general election law.
15    The ordinance authorizing the obligations may provide that
16the obligations shall contain a recital that they are issued
17pursuant to this Law, which recital shall be conclusive
18evidence of their validity and of the regularity of their
19issuance.
20    In the event the municipality authorizes issuance of
21obligations pursuant to this Law secured by the full faith and
22credit of the municipality, the ordinance authorizing the
23obligations may provide for the levy and collection of a direct
24annual tax upon all taxable property within the municipality
25sufficient to pay the principal thereof and interest thereon as
26it matures, which levy may be in addition to and exclusive of

 

 

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1the maximum of all other taxes authorized to be levied by the
2municipality, which levy, however, shall be abated to the
3extent that monies from other sources are available for payment
4of the obligations and the municipality certifies the amount of
5those monies available to the county clerk.
6    A certified copy of the ordinance shall be filed with the
7county clerk of each county in which any portion of the
8municipality is situated, and shall constitute the authority
9for the extension and collection of the taxes to be deposited
10in the business district tax allocation fund.
11    A municipality may also issue its obligations to refund, in
12whole or in part, obligations theretofore issued by the
13municipality under the authority of this Law, whether at or
14prior to maturity. However, the last maturity of the refunding
15obligations shall not be expressed to mature later than the
16dissolution date.
17    In the event a municipality issues obligations under home
18rule powers or other legislative authority, the proceeds of
19which are pledged to pay or reimburse business district project
20costs, the municipality may, if it has followed the procedures
21in conformance with this Law, retire those obligations from
22funds in the business district tax allocation fund in amounts
23and in such manner as if those obligations had been issued
24pursuant to the provisions of this Law.
25    No obligations issued pursuant to this Law shall be
26regarded as indebtedness of the municipality issuing those

 

 

HB2682- 307 -LRB101 09562 HLH 54660 b

1obligations or any other taxing district for the purpose of any
2limitation imposed by law.
3    Obligations issued pursuant to this Law shall not be
4subject to the provisions of the Bond Authorization Act.
5    (f) When business district project costs, including,
6without limitation, all obligations paying or reimbursing
7business district project costs have been paid, any surplus
8funds then remaining in the Business District Tax Allocation
9Fund shall be distributed to the municipal treasurer for
10deposit into the general corporate fund of the municipality.
11Upon payment of all business district project costs and
12retirement of all obligations paying or reimbursing business
13district project costs, but in no event more than 23 years
14after the date of adoption of the ordinance imposing taxes
15pursuant to subsection (10) or (11) of Section 11-74.3-3, the
16municipality shall adopt an ordinance immediately rescinding
17the taxes imposed pursuant to subsection (10) or (11) of
18Section 11-74.3-3.
19(Source: P.A. 99-143, eff. 7-27-15; 100-1171, eff. 1-4-19.)
 
20    (65 ILCS 5/11-101-3 new)
21    Sec. 11-101-3. Noise mitigation; air quality. A
22municipality that has implemented a Residential Sound
23Insulation Program to mitigate aircraft noise shall perform an
24in-home air quality test in a residence located in the
25municipality if (i) windows or doors were installed in the

 

 

HB2682- 308 -LRB101 09562 HLH 54660 b

1residence under the Residential Sound Insulation Program and
2(ii) the owner or occupant of the residence requests that the
3test be performed. The municipality and owner of the residence
4shall mutually agree on (i) the entity that will perform the
5test and (ii) when the test will occur. If a health hazard
6exists, as determined by the results of the test, then the
7municipality shall replace all windows and doors in the
8residence, without regard to the status of any warranty on the
9windows and doors. This Section is a limitation of home rule
10powers and functions under subsection (i) of Section 6 of
11Article VII of the Illinois Constitution on the concurrent
12exercise by home rule units of powers and functions exercised
13by the State.
 
14    Section 50. The Civic Center Code is amended by changing
15Section 245-12 as follows:
 
16    (70 ILCS 200/245-12)
17    Sec. 245-12. Use and occupation taxes.
18    (a) The Authority may adopt a resolution that authorizes a
19referendum on the question of whether the Authority shall be
20authorized to impose a retailers' occupation tax, a service
21occupation tax, and a use tax in one-quarter percent increments
22at a rate not to exceed 1%. The Authority shall certify the
23question to the proper election authorities who shall submit
24the question to the voters of the metropolitan area at the next

 

 

HB2682- 309 -LRB101 09562 HLH 54660 b

1regularly scheduled election in accordance with the general
2election law. The question shall be in substantially the
3following form:
4    "Shall the Salem Civic Center Authority be authorized to
5    impose a retailers' occupation tax, a service occupation
6    tax, and a use tax at the rate of (rate) for the sole
7    purpose of obtaining funds for the support, construction,
8    maintenance, or financing of a facility of the Authority?"
9    Votes shall be recorded as "yes" or "no". If a majority of
10all votes cast on the proposition are in favor of the
11proposition, the Authority is authorized to impose the tax.
12    (b) The Authority shall impose the retailers' occupation
13tax upon all persons engaged in the business of selling
14tangible personal property at retail in the metropolitan area,
15at the rate approved by referendum, on the gross receipts from
16the sales made in the course of such business within the
17metropolitan area. Beginning December 1, 2019, this tax is not
18imposed on sales of aviation fuel unless the tax revenue is
19expended for airport-related purposes. If the Authority does
20not have an airport-related purpose to which it dedicates
21aviation fuel tax revenue, then aviation fuel is excluded from
22the tax. For purposes of this Act, "airport-related purposes"
23has the meaning ascribed in Section 6z-20.2 of the State
24Finance Act. This exclusion for aviation fuel only applies for
25so long as the revenue use requirements of 49 U.S.C. 47107(b)
26and 49 U.S.C. 47133 are binding on the Authority.

 

 

HB2682- 310 -LRB101 09562 HLH 54660 b

1    On or before September, 2019, and on or before each April 1
2and October 1 thereafter, the Authority must certify to the
3Department of Transportation, in the form and manner required
4by the Department, whether the Authority has an airport-related
5purpose, which would allow any Retailers' Occupation Tax and
6Service Occupation Tax imposed by the Authority to include tax
7on aviation fuel. On or before October 1, 2019, and on or
8before each May 1 and November 1 thereafter, the Department of
9Transportation shall provide to the Department of Revenue, a
10list of units of local government which have certified to the
11Department of Transportation that they have airport-related
12purposes, which would allow any Retailers' Occupation Tax and
13Service Occupation Tax imposed by the unit of local government
14to include tax on aviation fuel. All disputes regarding whether
15or not a unit of local government has an airport-related
16purpose shall be resolved by the Department of Transportation.
17    The tax imposed under this Section and all civil penalties
18that may be assessed as an incident thereof shall be collected
19and enforced by the Department of Revenue. The Department has
20full power to administer and enforce this Section; to collect
21all taxes and penalties so collected in the manner provided in
22this Section; and to determine all rights to credit memoranda
23arising on account of the erroneous payment of tax or penalty
24hereunder. In the administration of, and compliance with, this
25Section, the Department and persons who are subject to this
26Section shall (i) have the same rights, remedies, privileges,

 

 

HB2682- 311 -LRB101 09562 HLH 54660 b

1immunities, powers and duties, (ii) be subject to the same
2conditions, restrictions, limitations, penalties, exclusions,
3exemptions, and definitions of terms, and (iii) employ the same
4modes of procedure as are prescribed in Sections 1, 1a, 1a-1,
51c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in
6respect to all provisions therein other than the State rate of
7tax), 2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except as to the
8disposition of taxes and penalties collected and provisions
9related to quarter monthly payments, and except that the
10retailer's discount is not allowed for taxes paid on aviation
11fuel that are deposited into the Local Government Aviation
12Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l,
136, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
14Retailers' Occupation Tax Act and Section 3-7 of the Uniform
15Penalty and Interest Act, as fully as if those provisions were
16set forth in this subsection.
17    Persons subject to any tax imposed under this subsection
18may reimburse themselves for their seller's tax liability by
19separately stating the tax as an additional charge, which
20charge may be stated in combination, in a single amount, with
21State taxes that sellers are required to collect, in accordance
22with such bracket schedules as the Department may prescribe.
23    Whenever the Department determines that a refund should be
24made under this subsection to a claimant instead of issuing a
25credit memorandum, the Department shall notify the State
26Comptroller, who shall cause the warrant to be drawn for the

 

 

HB2682- 312 -LRB101 09562 HLH 54660 b

1amount specified, and to the person named, in the notification
2from the Department. The refund shall be paid by the State
3Treasurer out of the tax fund referenced under paragraph (g) of
4this Section.
5    If a tax is imposed under this subsection (b), a tax shall
6also be imposed at the same rate under subsections (c) and (d)
7of this Section.
8    For the purpose of determining whether a tax authorized
9under this Section is applicable, a retail sale, by a producer
10of coal or other mineral mined in Illinois, is a sale at retail
11at the place where the coal or other mineral mined in Illinois
12is extracted from the earth. This paragraph does not apply to
13coal or other mineral when it is delivered or shipped by the
14seller to the purchaser at a point outside Illinois so that the
15sale is exempt under the Federal Constitution as a sale in
16interstate or foreign commerce.
17    Nothing in this Section shall be construed to authorize the
18Authority to impose a tax upon the privilege of engaging in any
19business which under the Constitution of the United States may
20not be made the subject of taxation by this State.
21    (c) If a tax has been imposed under subsection (b), a
22service occupation tax shall also be imposed at the same rate
23upon all persons engaged, in the metropolitan area, in the
24business of making sales of service, who, as an incident to
25making those sales of service, transfer tangible personal
26property within the metropolitan area as an incident to a sale

 

 

HB2682- 313 -LRB101 09562 HLH 54660 b

1of service. The tax imposed under this subsection and all civil
2penalties that may be assessed as an incident thereof shall be
3collected and enforced by the Department of Revenue.
4    Beginning December 1, 2019, this tax is not imposed on
5sales of aviation fuel unless the tax revenue is expended for
6airport-related purposes. If the Authority does not have an
7airport-related purpose to which it dedicates aviation fuel tax
8revenue, then aviation fuel is excluded from the tax. On or
9before September 1, 2019, and on or before each April 1 and
10October 1 thereafter, the Authority must certify to the
11Department of Transportation, in the form and manner required
12by the Department, whether the Authority has an airport-related
13purpose, which would allow any Retailers' Occupation Tax and
14Service Occupation Tax imposed by the Authority to include tax
15on aviation fuel. On or before October, 2019, and on or before
16each May 1 and November 1 thereafter, the Department of
17Transportation shall provide to the Department of Revenue, a
18list of units of local government which have certified to the
19Department of Transportation that they have airport-related
20purposes, which would allow any Retailers' Occupation Tax and
21Service Occupation Tax imposed by the unit of local government
22to include tax on aviation fuel. All disputes regarding whether
23or not a unit of local government has an airport-related
24purpose shall be resolved by the Department of Transportation.
25    The Department has full power to administer and enforce
26this paragraph; to collect all taxes and penalties due

 

 

HB2682- 314 -LRB101 09562 HLH 54660 b

1hereunder; to dispose of taxes and penalties so collected in
2the manner hereinafter provided; and to determine all rights to
3credit memoranda arising on account of the erroneous payment of
4tax or penalty hereunder. In the administration of, and
5compliance with this paragraph, the Department and persons who
6are subject to this paragraph shall (i) have the same rights,
7remedies, privileges, immunities, powers, and duties, (ii) be
8subject to the same conditions, restrictions, limitations,
9penalties, exclusions, exemptions, and definitions of terms,
10and (iii) employ the same modes of procedure as are prescribed
11in Sections 2 (except that the reference to State in the
12definition of supplier maintaining a place of business in this
13State shall mean the metropolitan area), 2a, 2b, 3 through 3-55
14(in respect to all provisions therein other than the State rate
15of tax), 4 (except that the reference to the State shall be to
16the Authority), 5, 7, 8 (except that the jurisdiction to which
17the tax shall be a debt to the extent indicated in that Section
188 shall be the Authority), 9 (except as to the disposition of
19taxes and penalties collected, and except that the returned
20merchandise credit for this tax may not be taken against any
21State tax, and except that the retailer's discount is not
22allowed for taxes paid on aviation fuel that are deposited into
23the Local Government Aviation Trust Fund), 11, 12 (except the
24reference therein to Section 2b of the Retailers' Occupation
25Tax Act), 13 (except that any reference to the State shall mean
26the Authority), 15, 16, 17, 18, 19 and 20 of the Service

 

 

HB2682- 315 -LRB101 09562 HLH 54660 b

1Occupation Tax Act and Section 3-7 of the Uniform Penalty and
2Interest Act, as fully as if those provisions were set forth
3herein.
4    Persons subject to any tax imposed under the authority
5granted in this subsection may reimburse themselves for their
6serviceman's tax liability by separately stating the tax as an
7additional charge, which charge may be stated in combination,
8in a single amount, with State tax that servicemen are
9authorized to collect under the Service Use Tax Act, in
10accordance with such bracket schedules as the Department may
11prescribe.
12    Whenever the Department determines that a refund should be
13made under this subsection to a claimant instead of issuing a
14credit memorandum, the Department shall notify the State
15Comptroller, who shall cause the warrant to be drawn for the
16amount specified, and to the person named, in the notification
17from the Department. The refund shall be paid by the State
18Treasurer out of the tax fund referenced under paragraph (g) of
19this Section.
20    Nothing in this paragraph shall be construed to authorize
21the Authority to impose a tax upon the privilege of engaging in
22any business which under the Constitution of the United States
23may not be made the subject of taxation by the State.
24    (d) If a tax has been imposed under subsection (b), a use
25tax shall also be imposed at the same rate upon the privilege
26of using, in the metropolitan area, any item of tangible

 

 

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1personal property that is purchased outside the metropolitan
2area at retail from a retailer, and that is titled or
3registered at a location within the metropolitan area with an
4agency of this State's government. "Selling price" is defined
5as in the Use Tax Act. The tax shall be collected from persons
6whose Illinois address for titling or registration purposes is
7given as being in the metropolitan area. The tax shall be
8collected by the Department of Revenue for the Authority. The
9tax must be paid to the State, or an exemption determination
10must be obtained from the Department of Revenue, before the
11title or certificate of registration for the property may be
12issued. The tax or proof of exemption may be transmitted to the
13Department by way of the State agency with which, or the State
14officer with whom, the tangible personal property must be
15titled or registered if the Department and the State agency or
16State officer determine that this procedure will expedite the
17processing of applications for title or registration.
18    The Department has full power to administer and enforce
19this paragraph; to collect all taxes, penalties and interest
20due hereunder; to dispose of taxes, penalties and interest so
21collected in the manner hereinafter provided; and to determine
22all rights to credit memoranda or refunds arising on account of
23the erroneous payment of tax, penalty or interest hereunder. In
24the administration of, and compliance with, this subsection,
25the Department and persons who are subject to this paragraph
26shall (i) have the same rights, remedies, privileges,

 

 

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1immunities, powers, and duties, (ii) be subject to the same
2conditions, restrictions, limitations, penalties, exclusions,
3exemptions, and definitions of terms, and (iii) employ the same
4modes of procedure as are prescribed in Sections 2 (except the
5definition of "retailer maintaining a place of business in this
6State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, 4, 6,
77, 8 (except that the jurisdiction to which the tax shall be a
8debt to the extent indicated in that Section 8 shall be the
9Authority), 9 (except provisions relating to quarter monthly
10payments), 10, 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22
11of the Use Tax Act and Section 3-7 of the Uniform Penalty and
12Interest Act, that are not inconsistent with this paragraph, as
13fully as if those provisions were set forth herein.
14    Whenever the Department determines that a refund should be
15made under this subsection to a claimant instead of issuing a
16credit memorandum, the Department shall notify the State
17Comptroller, who shall cause the order to be drawn for the
18amount specified, and to the person named, in the notification
19from the Department. The refund shall be paid by the State
20Treasurer out of the tax fund referenced under paragraph (g) of
21this Section.
22    (e) A certificate of registration issued by the State
23Department of Revenue to a retailer under the Retailers'
24Occupation Tax Act or under the Service Occupation Tax Act
25shall permit the registrant to engage in a business that is
26taxed under the tax imposed under paragraphs (b), (c), or (d)

 

 

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1of this Section and no additional registration shall be
2required. A certificate issued under the Use Tax Act or the
3Service Use Tax Act shall be applicable with regard to any tax
4imposed under paragraph (c) of this Section.
5    (f) The results of any election authorizing a proposition
6to impose a tax under this Section or effecting a change in the
7rate of tax shall be certified by the proper election
8authorities and filed with the Illinois Department on or before
9the first day of April. In addition, an ordinance imposing,
10discontinuing, or effecting a change in the rate of tax under
11this Section shall be adopted and a certified copy thereof
12filed with the Department on or before the first day of April.
13After proper receipt of such certifications, the Department
14shall proceed to administer and enforce this Section as of the
15first day of July next following such adoption and filing.
16    (g) Except as otherwise provided, the The Department of
17Revenue shall, upon collecting any taxes and penalties as
18provided in this Section, pay the taxes and penalties over to
19the State Treasurer as trustee for the Authority. The taxes and
20penalties shall be held in a trust fund outside the State
21Treasury. Taxes and penalties collected on aviation fuel sold
22on or after December 1, 2019, shall be immediately paid over by
23the Department to the State Treasurer, ex officio, as trustee,
24for deposit into the Local Government Aviation Trust Fund. The
25Department shall only pay moneys into the State Aviation
26Program Fund under this Act for so long as the revenue use

 

 

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1requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
2binding on the District. On or before the 25th day of each
3calendar month, the Department of Revenue shall prepare and
4certify to the Comptroller of the State of Illinois the amount
5to be paid to the Authority, which shall be the balance in the
6fund, less any amount determined by the Department to be
7necessary for the payment of refunds and not including taxes
8and penalties collected on aviation fuel sold on or after
9December 1, 2019. Within 10 days after receipt by the
10Comptroller of the certification of the amount to be paid to
11the Authority, the Comptroller shall cause an order to be drawn
12for payment for the amount in accordance with the directions
13contained in the certification. Amounts received from the tax
14imposed under this Section shall be used only for the support,
15construction, maintenance, or financing of a facility of the
16Authority.
17    (h) When certifying the amount of a monthly disbursement to
18the Authority under this Section, the Department shall increase
19or decrease the amounts by an amount necessary to offset any
20miscalculation of previous disbursements. The offset amount
21shall be the amount erroneously disbursed within the previous 6
22months from the time a miscalculation is discovered.
23    (i) This Section may be cited as the Salem Civic Center Use
24and Occupation Tax Law.
25(Source: P.A. 98-1098, eff. 8-26-14.)
 

 

 

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1    Section 55. The Flood Prevention District Act is amended by
2changing Section 25 as follows:
 
3    (70 ILCS 750/25)
4    Sec. 25. Flood prevention retailers' and service
5occupation taxes.
6    (a) If the Board of Commissioners of a flood prevention
7district determines that an emergency situation exists
8regarding levee repair or flood prevention, and upon an
9ordinance confirming the determination adopted by the
10affirmative vote of a majority of the members of the county
11board of the county in which the district is situated, the
12county may impose a flood prevention retailers' occupation tax
13upon all persons engaged in the business of selling tangible
14personal property at retail within the territory of the
15district to provide revenue to pay the costs of providing
16emergency levee repair and flood prevention and to secure the
17payment of bonds, notes, and other evidences of indebtedness
18issued under this Act for a period not to exceed 25 years or as
19required to repay the bonds, notes, and other evidences of
20indebtedness issued under this Act. The tax rate shall be 0.25%
21of the gross receipts from all taxable sales made in the course
22of that business. Beginning December 1, 2017, this tax is not
23imposed on sales of aviation fuel unless the tax revenue is
24expended for airport-related purposes. If the District does not
25have an airport-related purpose to which it dedicates aviation

 

 

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1fuel tax revenue, then aviation fuel is excluded from the tax.
2The County must comply with the certification requirements for
3airport-related purposes under Section 5-1184 of the Counties
4Code. The tax imposed under this Section and all civil
5penalties that may be assessed as an incident thereof shall be
6collected and enforced by the State Department of Revenue. The
7Department shall have full power to administer and enforce this
8Section; to collect all taxes and penalties so collected in the
9manner hereinafter provided; and to determine all rights to
10credit memoranda arising on account of the erroneous payment of
11tax or penalty hereunder.
12    For purposes of this Act, "airport-related purposes" has
13the meaning ascribed in Section 6z-20.2 of the State Finance
14Act. This exclusion for aviation fuel only applies for so long
15as the revenue use requirements of 49 U.S.C. §47107(b) and 49
16U.S.C. §47133 are binding on the District.
17    In the administration of and compliance with this
18subsection, the Department and persons who are subject to this
19subsection (i) have the same rights, remedies, privileges,
20immunities, powers, and duties, (ii) are subject to the same
21conditions, restrictions, limitations, penalties, and
22definitions of terms, and (iii) shall employ the same modes of
23procedure as are set forth in Sections 1 through 1o, 2 through
242-70 (in respect to all provisions contained in those Sections
25other than the State rate of tax), 2a through 2h, 3 (except as
26to the disposition of taxes and penalties collected, and except

 

 

HB2682- 322 -LRB101 09562 HLH 54660 b

1that the retailer's discount is not allowed for taxes paid on
2aviation fuel that are deposited into the Local Government
3Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
45l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
5Retailers' Occupation Tax Act and all provisions of the Uniform
6Penalty and Interest Act as if those provisions were set forth
7in this subsection.
8    Persons subject to any tax imposed under this Section may
9reimburse themselves for their seller's tax liability
10hereunder by separately stating the tax as an additional
11charge, which charge may be stated in combination in a single
12amount with State taxes that sellers are required to collect
13under the Use Tax Act, under any bracket schedules the
14Department may prescribe.
15    If a tax is imposed under this subsection (a), a tax shall
16also be imposed under subsection (b) of this Section.
17    (b) If a tax has been imposed under subsection (a), a flood
18prevention service occupation tax shall also be imposed upon
19all persons engaged within the territory of the district in the
20business of making sales of service, who, as an incident to
21making the sales of service, transfer tangible personal
22property, either in the form of tangible personal property or
23in the form of real estate as an incident to a sale of service
24to provide revenue to pay the costs of providing emergency
25levee repair and flood prevention and to secure the payment of
26bonds, notes, and other evidences of indebtedness issued under

 

 

HB2682- 323 -LRB101 09562 HLH 54660 b

1this Act for a period not to exceed 25 years or as required to
2repay the bonds, notes, and other evidences of indebtedness.
3The tax rate shall be 0.25% of the selling price of all
4tangible personal property transferred. Beginning December 1,
52019, this tax is not imposed on sales of aviation fuel unless
6the tax revenue is expended for airport-related purposes. If
7the District does not have an airport-related purpose to which
8it dedicates aviation fuel tax revenue, then aviation fuel is
9excluded from the tax. The County must comply with the
10certification requirements for airport-related purposes under
11Section 5-1184 of the Counties Code. For purposes of this Act,
12"airport-related purposes" has the meaning ascribed in Section
136z-20.2 of the State Finance Act. This exclusion for aviation
14fuel only applies for so long as the revenue use requirements
15of 49 U.S.C. §47107(b) and 49 U.S.C. §47133 are binding on the
16District.
17    The tax imposed under this subsection and all civil
18penalties that may be assessed as an incident thereof shall be
19collected and enforced by the State Department of Revenue. The
20Department shall have full power to administer and enforce this
21subsection; to collect all taxes and penalties due hereunder;
22to dispose of taxes and penalties collected in the manner
23hereinafter provided; and to determine all rights to credit
24memoranda arising on account of the erroneous payment of tax or
25penalty hereunder.
26    In the administration of and compliance with this

 

 

HB2682- 324 -LRB101 09562 HLH 54660 b

1subsection, the Department and persons who are subject to this
2subsection shall (i) have the same rights, remedies,
3privileges, immunities, powers, and duties, (ii) be subject to
4the same conditions, restrictions, limitations, penalties, and
5definitions of terms, and (iii) employ the same modes of
6procedure as are set forth in Sections 2 (except that the
7reference to State in the definition of supplier maintaining a
8place of business in this State means the district), 2a through
92d, 3 through 3-50 (in respect to all provisions contained in
10those Sections other than the State rate of tax), 4 (except
11that the reference to the State shall be to the district), 5,
127, 8 (except that the jurisdiction to which the tax is a debt
13to the extent indicated in that Section 8 is the district), 9
14(except as to the disposition of taxes and penalties collected,
15and except that the retailer's discount is not allowed for
16taxes paid on aviation fuel that are deposited into the Local
17Government Aviation Trust Fund), 10, 11, 12 (except the
18reference therein to Section 2b of the Retailers' Occupation
19Tax Act), 13 (except that any reference to the State means the
20district), Section 15, 16, 17, 18, 19, and 20 of the Service
21Occupation Tax Act and all provisions of the Uniform Penalty
22and Interest Act, as fully as if those provisions were set
23forth herein.
24    Persons subject to any tax imposed under the authority
25granted in this subsection may reimburse themselves for their
26serviceman's tax liability hereunder by separately stating the

 

 

HB2682- 325 -LRB101 09562 HLH 54660 b

1tax as an additional charge, that charge may be stated in
2combination in a single amount with State tax that servicemen
3are authorized to collect under the Service Use Tax Act, under
4any bracket schedules the Department may prescribe.
5    (c) The taxes imposed in subsections (a) and (b) may not be
6imposed on personal property titled or registered with an
7agency of the State or on personal property taxed at the 1%
8rate under the Retailers' Occupation Tax Act and the Service
9Occupation Tax Act.
10    (d) Nothing in this Section shall be construed to authorize
11the district to impose a tax upon the privilege of engaging in
12any business that under the Constitution of the United States
13may not be made the subject of taxation by the State.
14    (e) The certificate of registration that is issued by the
15Department to a retailer under the Retailers' Occupation Tax
16Act or a serviceman under the Service Occupation Tax Act
17permits the retailer or serviceman to engage in a business that
18is taxable without registering separately with the Department
19under an ordinance or resolution under this Section.
20    (f) Except as otherwise provided, the The Department shall
21immediately pay over to the State Treasurer, ex officio, as
22trustee, all taxes and penalties collected under this Section
23to be deposited into the Flood Prevention Occupation Tax Fund,
24which shall be an unappropriated trust fund held outside the
25State treasury. Taxes and penalties collected on aviation fuel
26sold on or after December 1, 2017, shall be immediately paid

 

 

HB2682- 326 -LRB101 09562 HLH 54660 b

1over by the Department to the State Treasurer, ex officio, as
2trustee, for deposit into the Local Government Aviation Trust
3Fund. The Department shall only pay moneys into the State
4Aviation Program Fund under this Act for so long as the revenue
5use requirements of 49 U.S.C. §47107(b) and 49 U.S.C. §47133
6are binding on the District.
7    On or before the 25th day of each calendar month, the
8Department shall prepare and certify to the Comptroller the
9disbursement of stated sums of money to the counties from which
10retailers or servicemen have paid taxes or penalties to the
11Department during the second preceding calendar month. The
12amount to be paid to each county is equal to the amount (not
13including credit memoranda and not including taxes and
14penalties collected on aviation fuel sold on or after December
151, 2017) collected from the county under this Section during
16the second preceding calendar month by the Department, (i) less
172% of that amount (except the amount collected on aviation fuel
18sold on or after December 1, 2017), which shall be deposited
19into the Tax Compliance and Administration Fund and shall be
20used by the Department in administering and enforcing the
21provisions of this Section on behalf of the county, (ii) plus
22an amount that the Department determines is necessary to offset
23any amounts that were erroneously paid to a different taxing
24body; (iii) less an amount equal to the amount of refunds made
25during the second preceding calendar month by the Department on
26behalf of the county; and (iv) less any amount that the

 

 

HB2682- 327 -LRB101 09562 HLH 54660 b

1Department determines is necessary to offset any amounts that
2were payable to a different taxing body but were erroneously
3paid to the county. When certifying the amount of a monthly
4disbursement to a county under this Section, the Department
5shall increase or decrease the amounts by an amount necessary
6to offset any miscalculation of previous disbursements within
7the previous 6 months from the time a miscalculation is
8discovered.
9    Within 10 days after receipt by the Comptroller from the
10Department of the disbursement certification to the counties
11provided for in this Section, the Comptroller shall cause the
12orders to be drawn for the respective amounts in accordance
13with directions contained in the certification.
14    If the Department determines that a refund should be made
15under this Section to a claimant instead of issuing a credit
16memorandum, then the Department shall notify the Comptroller,
17who shall cause the order to be drawn for the amount specified
18and to the person named in the notification from the
19Department. The refund shall be paid by the Treasurer out of
20the Flood Prevention Occupation Tax Fund.
21    (g) If a county imposes a tax under this Section, then the
22county board shall, by ordinance, discontinue the tax upon the
23payment of all indebtedness of the flood prevention district.
24The tax shall not be discontinued until all indebtedness of the
25District has been paid.
26    (h) Any ordinance imposing the tax under this Section, or

 

 

HB2682- 328 -LRB101 09562 HLH 54660 b

1any ordinance that discontinues the tax, must be certified by
2the county clerk and filed with the Illinois Department of
3Revenue either (i) on or before the first day of April,
4whereupon the Department shall proceed to administer and
5enforce the tax or change in the rate as of the first day of
6July next following the filing; or (ii) on or before the first
7day of October, whereupon the Department shall proceed to
8administer and enforce the tax or change in the rate as of the
9first day of January next following the filing.
10    (j) County Flood Prevention Occupation Tax Fund. All
11proceeds received by a county from a tax distribution under
12this Section must be maintained in a special fund known as the
13[name of county] flood prevention occupation tax fund. The
14county shall, at the direction of the flood prevention
15district, use moneys in the fund to pay the costs of providing
16emergency levee repair and flood prevention and to pay bonds,
17notes, and other evidences of indebtedness issued under this
18Act.
19    (k) This Section may be cited as the Flood Prevention
20Occupation Tax Law.
21(Source: P.A. 99-143, eff. 7-27-15; 99-217, eff. 7-31-15;
2299-642, eff. 7-28-16; 100-1171, eff. 1-4-19.)
 
23    Section 60. The Metro-East Park and Recreation District Act
24is amended by changing Section 30 as follows:
 

 

 

HB2682- 329 -LRB101 09562 HLH 54660 b

1    (70 ILCS 1605/30)
2    Sec. 30. Taxes.
3    (a) The board shall impose a tax upon all persons engaged
4in the business of selling tangible personal property, other
5than personal property titled or registered with an agency of
6this State's government, at retail in the District on the gross
7receipts from the sales made in the course of business. This
8tax shall be imposed only at the rate of one-tenth of one per
9cent.
10    This additional tax may not be imposed on tangible personal
11property taxed at the 1% rate under the Retailers' Occupation
12Tax Act. Beginning December 1, 2019, this tax is not imposed on
13sales of aviation fuel unless the tax revenue is expended for
14airport-related purposes. If the District does not have an
15airport-related purpose to which it dedicates aviation fuel tax
16revenue, then aviation fuel shall be excluded from tax. For
17purposes of this Act, "airport-related purposes" has the
18meaning ascribed in Section 6z-20.2 of the State Finance Act.
19This exception for aviation fuel only applies for so long as
20the revenue use requirements of 49 U.S.C. §47107(b) and 49
21U.S.C. §47133 are binding on the District. The tax imposed by
22the Board under this Section and all civil penalties that may
23be assessed as an incident of the tax shall be collected and
24enforced by the Department of Revenue. The certificate of
25registration that is issued by the Department to a retailer
26under the Retailers' Occupation Tax Act shall permit the

 

 

HB2682- 330 -LRB101 09562 HLH 54660 b

1retailer to engage in a business that is taxable without
2registering separately with the Department under an ordinance
3or resolution under this Section. The Department has full power
4to administer and enforce this Section, to collect all taxes
5and penalties due under this Section, to dispose of taxes and
6penalties so collected in the manner provided in this Section,
7and to determine all rights to credit memoranda arising on
8account of the erroneous payment of a tax or penalty under this
9Section. In the administration of and compliance with this
10Section, the Department and persons who are subject to this
11Section shall (i) have the same rights, remedies, privileges,
12immunities, powers, and duties, (ii) be subject to the same
13conditions, restrictions, limitations, penalties, and
14definitions of terms, and (iii) employ the same modes of
15procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
161f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to all
17provisions contained in those Sections other than the State
18rate of tax), 2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except
19provisions relating to transaction returns and quarter monthly
20payments, and except that the retailer's discount is not
21allowed for taxes paid on aviation fuel that are deposited into
22the Local Government Aviation Trust Fund), 4, 5, 5a, 5b, 5c,
235d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
2410, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
25and the Uniform Penalty and Interest Act as if those provisions
26were set forth in this Section.

 

 

HB2682- 331 -LRB101 09562 HLH 54660 b

1    On or before September 1, 2019, and on or before each April
21 and October 1 thereafter, the Board must certify to the
3Department of Transportation, in the form and manner required
4by the Department, whether the District has an airport-related
5purpose, which would allow any Retailers' Occupation Tax and
6Service Occupation Tax imposed by the District to include tax
7on aviation fuel. On or before October 1, 2017, and on or
8before each May 1 and November 1 thereafter, the Department of
9Transportation shall provide to the Department of Revenue, a
10list of units of local government which have certified to the
11Department of Transportation that they have airport-related
12purposes, which would allow any Retailers' Occupation Tax and
13Service Occupation Tax imposed by the unit of local government
14to include tax on aviation fuel. All disputes regarding whether
15or not a unit of local government has an airport-related
16purpose shall be resolved by the Department of Transportation.
17    Persons subject to any tax imposed under the authority
18granted in this Section may reimburse themselves for their
19sellers' tax liability by separately stating the tax as an
20additional charge, which charge may be stated in combination,
21in a single amount, with State tax which sellers are required
22to collect under the Use Tax Act, pursuant to such bracketed
23schedules as the Department may prescribe.
24    Whenever the Department determines that a refund should be
25made under this Section to a claimant instead of issuing a
26credit memorandum, the Department shall notify the State

 

 

HB2682- 332 -LRB101 09562 HLH 54660 b

1Comptroller, who shall cause the order to be drawn for the
2amount specified and to the person named in the notification
3from the Department. The refund shall be paid by the State
4Treasurer out of the State Metro-East Park and Recreation
5District Fund.
6    (b) If a tax has been imposed under subsection (a), a
7service occupation tax shall also be imposed at the same rate
8upon all persons engaged, in the District, in the business of
9making sales of service, who, as an incident to making those
10sales of service, transfer tangible personal property within
11the District as an incident to a sale of service. This tax may
12not be imposed on tangible personal property taxed at the 1%
13rate under the Service Occupation Tax Act. Beginning December
141, 2019, this tax may not be imposed on sales of aviation fuel
15unless the tax revenue is expended for airport-related
16purposes. If the District does not have an airport-related
17purpose to which it dedicates aviation fuel tax revenue, then
18aviation fuel shall be excluded from tax. For purposes of this
19Act, "airport-related purposes" has the meaning ascribed in
20Section 6z-20.2 of the State Finance Act. This exception for
21aviation fuel only applies for so long as the revenue use
22requirements of 49 U.S.C. §47107(b) and 49 U.S.C. §47133 are
23binding on the District. The tax imposed under this subsection
24and all civil penalties that may be assessed as an incident
25thereof shall be collected and enforced by the Department of
26Revenue. The Department has full power to administer and

 

 

HB2682- 333 -LRB101 09562 HLH 54660 b

1enforce this subsection; to collect all taxes and penalties due
2hereunder; to dispose of taxes and penalties so collected in
3the manner hereinafter provided; and to determine all rights to
4credit memoranda arising on account of the erroneous payment of
5tax or penalty hereunder. In the administration of, and
6compliance with this subsection, the Department and persons who
7are subject to this paragraph shall (i) have the same rights,
8remedies, privileges, immunities, powers, and duties, (ii) be
9subject to the same conditions, restrictions, limitations,
10penalties, exclusions, exemptions, and definitions of terms,
11and (iii) employ the same modes of procedure as are prescribed
12in Sections 2 (except that the reference to State in the
13definition of supplier maintaining a place of business in this
14State shall mean the District), 2a, 2b, 2c, 3 through 3-50 (in
15respect to all provisions therein other than the State rate of
16tax), 4 (except that the reference to the State shall be to the
17District), 5, 7, 8 (except that the jurisdiction to which the
18tax shall be a debt to the extent indicated in that Section 8
19shall be the District), 9 (except as to the disposition of
20taxes and penalties collected, and except that the retailer's
21discount is not allowed for taxes paid on aviation fuel that
22are deposited into the Local Government Aviation Trust Fund),
2310, 11, 12 (except the reference therein to Section 2b of the
24Retailers' Occupation Tax Act), 13 (except that any reference
25to the State shall mean the District), Sections 15, 16, 17, 18,
2619 and 20 of the Service Occupation Tax Act and the Uniform

 

 

HB2682- 334 -LRB101 09562 HLH 54660 b

1Penalty and Interest Act, as fully as if those provisions were
2set forth herein.
3    On or before September 1, 2017, and on or before each April
41 and October 1 thereafter, the Board must certify to the
5Department of Transportation, in the form and manner required
6by the Department, whether the District has an airport-related
7purpose, which would allow any Retailers' Occupation Tax and
8Service Occupation Tax imposed by the District to include tax
9on aviation fuel. On or before October 1, 2017, and on or
10before each May 1 and November 1 thereafter, the Department of
11Transportation shall provide to the Department of Revenue, a
12list of units of local government which have certified to the
13Department of Transportation that they have airport-related
14purposes, which would allow any Retailers' Occupation Tax and
15Service Occupation Tax imposed by the unit of local government
16to include tax on aviation fuel. All disputes regarding whether
17or not a unit of local government has an airport-related
18purpose shall be resolved by the Department of Transportation.
19    Persons subject to any tax imposed under the authority
20granted in this subsection may reimburse themselves for their
21serviceman's tax liability by separately stating the tax as an
22additional charge, which charge may be stated in combination,
23in a single amount, with State tax that servicemen are
24authorized to collect under the Service Use Tax Act, in
25accordance with such bracket schedules as the Department may
26prescribe.

 

 

HB2682- 335 -LRB101 09562 HLH 54660 b

1    Whenever the Department determines that a refund should be
2made under this subsection to a claimant instead of issuing a
3credit memorandum, the Department shall notify the State
4Comptroller, who shall cause the warrant to be drawn for the
5amount specified, and to the person named, in the notification
6from the Department. The refund shall be paid by the State
7Treasurer out of the State Metro-East Park and Recreation
8District Fund.
9    Nothing in this subsection shall be construed to authorize
10the board to impose a tax upon the privilege of engaging in any
11business which under the Constitution of the United States may
12not be made the subject of taxation by the State.
13    (c) Except as otherwise provided in this paragraph, the The
14Department shall immediately pay over to the State Treasurer,
15ex officio, as trustee, all taxes and penalties collected under
16this Section to be deposited into the State Metro-East Park and
17Recreation District Fund, which shall be an unappropriated
18trust fund held outside of the State treasury. Taxes and
19penalties collected on aviation fuel sold on or after December
201, 2019, shall be immediately paid over by the Department to
21the State Treasurer, ex officio, as trustee, for deposit into
22the Local Government Aviation Trust Fund. The Department shall
23only pay moneys into the State Aviation Program Fund under this
24Act for so long as the revenue use requirements of 49 U.S.C.
25§47107(b) and 49 U.S.C. §47133 are binding on the District.
26    As soon as possible after the first day of each month,

 

 

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1beginning January 1, 2011, upon certification of the Department
2of Revenue, the Comptroller shall order transferred, and the
3Treasurer shall transfer, to the STAR Bonds Revenue Fund the
4local sales tax increment, as defined in the Innovation
5Development and Economy Act, collected under this Section
6during the second preceding calendar month for sales within a
7STAR bond district. The Department shall make this
8certification only if the Metro East Park and Recreation
9District imposes a tax on real property as provided in the
10definition of "local sales taxes" under the Innovation
11Development and Economy Act.
12    After the monthly transfer to the STAR Bonds Revenue Fund,
13on or before the 25th day of each calendar month, the
14Department shall prepare and certify to the Comptroller the
15disbursement of stated sums of money pursuant to Section 35 of
16this Act to the District from which retailers have paid taxes
17or penalties to the Department during the second preceding
18calendar month. The amount to be paid to the District shall be
19the amount (not including credit memoranda and not including
20taxes and penalties collected on aviation fuel sold on or after
21December 1, 2019) collected under this Section during the
22second preceding calendar month by the Department plus an
23amount the Department determines is necessary to offset any
24amounts that were erroneously paid to a different taxing body,
25and not including (i) an amount equal to the amount of refunds
26made during the second preceding calendar month by the

 

 

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1Department on behalf of the District, (ii) any amount that the
2Department determines is necessary to offset any amounts that
3were payable to a different taxing body but were erroneously
4paid to the District, (iii) any amounts that are transferred to
5the STAR Bonds Revenue Fund, and (iv) 1.5% of the remainder,
6which the Department shall transfer into the Tax Compliance and
7Administration Fund. The Department, at the time of each
8monthly disbursement to the District, shall prepare and certify
9to the State Comptroller the amount to be transferred into the
10Tax Compliance and Administration Fund under this subsection.
11Within 10 days after receipt by the Comptroller of the
12disbursement certification to the District and the Tax
13Compliance and Administration Fund provided for in this Section
14to be given to the Comptroller by the Department, the
15Comptroller shall cause the orders to be drawn for the
16respective amounts in accordance with directions contained in
17the certification.
18    (d) For the purpose of determining whether a tax authorized
19under this Section is applicable, a retail sale by a producer
20of coal or another mineral mined in Illinois is a sale at
21retail at the place where the coal or other mineral mined in
22Illinois is extracted from the earth. This paragraph does not
23apply to coal or another mineral when it is delivered or
24shipped by the seller to the purchaser at a point outside
25Illinois so that the sale is exempt under the United States
26Constitution as a sale in interstate or foreign commerce.

 

 

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1    (e) Nothing in this Section shall be construed to authorize
2the board to impose a tax upon the privilege of engaging in any
3business that under the Constitution of the United States may
4not be made the subject of taxation by this State.
5    (f) An ordinance imposing a tax under this Section or an
6ordinance extending the imposition of a tax to an additional
7county or counties shall be certified by the board and filed
8with the Department of Revenue either (i) on or before the
9first day of April, whereupon the Department shall proceed to
10administer and enforce the tax as of the first day of July next
11following the filing; or (ii) on or before the first day of
12October, whereupon the Department shall proceed to administer
13and enforce the tax as of the first day of January next
14following the filing.
15    (g) When certifying the amount of a monthly disbursement to
16the District under this Section, the Department shall increase
17or decrease the amounts by an amount necessary to offset any
18misallocation of previous disbursements. The offset amount
19shall be the amount erroneously disbursed within the previous 6
20months from the time a misallocation is discovered.
21(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
22100-587, eff. 6-4-18; 100-1171, eff. 1-4-19; revised 1-11-19.)
 
23    Section 65. The Local Mass Transit District Act is amended
24by changing Section 5.01 as follows:
 

 

 

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1    (70 ILCS 3610/5.01)   (from Ch. 111 2/3, par. 355.01)
2    Sec. 5.01. Metro East Mass Transit District; use and
3occupation taxes.
4    (a) The Board of Trustees of any Metro East Mass Transit
5District may, by ordinance adopted with the concurrence of
6two-thirds of the then trustees, impose throughout the District
7any or all of the taxes and fees provided in this Section.
8Except as otherwise provided, all All taxes and fees imposed
9under this Section shall be used only for public mass
10transportation systems, and the amount used to provide mass
11transit service to unserved areas of the District shall be in
12the same proportion to the total proceeds as the number of
13persons residing in the unserved areas is to the total
14population of the District. Except as otherwise provided in
15this Act, taxes imposed under this Section and civil penalties
16imposed incident thereto shall be collected and enforced by the
17State Department of Revenue. The Department shall have the
18power to administer and enforce the taxes and to determine all
19rights for refunds for erroneous payments of the taxes.
20    (b) The Board may impose a Metro East Mass Transit District
21Retailers' Occupation Tax upon all persons engaged in the
22business of selling tangible personal property at retail in the
23district at a rate of 1/4 of 1%, or as authorized under
24subsection (d-5) of this Section, of the gross receipts from
25the sales made in the course of such business within the
26district, except that the rate of tax imposed under this

 

 

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1Section on sales of aviation fuel on or after December 1, 2019
2shall be 0.25% in Madison County unless the Metro-East Mass
3Transit District in Madison County has an "airport-related
4purpose" and any additional amount authorized under subsection
5(d-5) is expended for airport-related purposes. If there is no
6airport-related purpose to which aviation fuel tax revenue is
7dedicated, then aviation fuel is excluded from any future
8increase in the tax. The rate in St. Clair County shall be
90.25% unless the Metro-East Mass Transit District in St. Clair
10County has an "airport-related purpose" and the additional
110.50% of the 0.75% tax on aviation fuel imposed in that County
12is expended for airport-related purposes. If there is no
13airport-related purpose to which aviation fuel tax revenue is
14dedicated, then aviation fuel is excluded from the tax.
15    On or before September, 2019, and on or before each April 1
16and October 1 thereafter, each Metro-East Mass Transit District
17and Madison and St. Clair Counties must certify to the
18Department of Transportation, in the form and manner required
19by the Department, whether they have an airport-related
20purpose, which would allow any Retailers' Occupation Tax and
21Service Occupation Tax imposed under this Act to include tax on
22aviation fuel. On or before October 1, 2019, and on or before
23each May 1 and November 1 thereafter, the Department of
24Transportation shall provide to the Department of Revenue, a
25list of units of local government which have certified to the
26Department of Transportation that they have airport-related

 

 

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1purposes, which would allow any Retailers' Occupation Tax and
2Service Occupation Tax imposed by the unit of local government
3to include tax on aviation fuel. All disputes regarding whether
4or not a unit of local government has an airport-related
5purpose shall be resolved by the Department of Transportation.
6    For purposes of this Act, "airport-related purposes" has
7the meaning ascribed in Section 6z-20.2 of the State Finance
8Act. This exclusion for aviation fuel only applies for so long
9as the revenue use requirements of 49 U.S.C. 47107(b) and 49
10U.S.C. 47133 are binding on the District.
11    The tax imposed under this Section and all civil penalties
12that may be assessed as an incident thereof shall be collected
13and enforced by the State Department of Revenue. The Department
14shall have full power to administer and enforce this Section;
15to collect all taxes and penalties so collected in the manner
16hereinafter provided; and to determine all rights to credit
17memoranda arising on account of the erroneous payment of tax or
18penalty hereunder. In the administration of, and compliance
19with, this Section, the Department and persons who are subject
20to this Section shall have the same rights, remedies,
21privileges, immunities, powers and duties, and be subject to
22the same conditions, restrictions, limitations, penalties,
23exclusions, exemptions and definitions of terms and employ the
24same modes of procedure, as are prescribed in Sections 1, 1a,
251a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all
26provisions therein other than the State rate of tax), 2c, 3

 

 

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1(except as to the disposition of taxes and penalties collected,
2and except that the retailer's discount is not allowed for
3taxes paid on aviation fuel that are deposited into the Local
4Government Aviation Trust Fund), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g,
55h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, 13,
6and 14 of the Retailers' Occupation Tax Act and Section 3-7 of
7the Uniform Penalty and Interest Act, as fully as if those
8provisions were set forth herein.
9    Persons subject to any tax imposed under the Section may
10reimburse themselves for their seller's tax liability
11hereunder by separately stating the tax as an additional
12charge, which charge may be stated in combination, in a single
13amount, with State taxes that sellers are required to collect
14under the Use Tax Act, in accordance with such bracket
15schedules as the Department may prescribe.
16    Whenever the Department determines that a refund should be
17made under this Section to a claimant instead of issuing a
18credit memorandum, the Department shall notify the State
19Comptroller, who shall cause the warrant to be drawn for the
20amount specified, and to the person named, in the notification
21from the Department. The refund shall be paid by the State
22Treasurer out of the Metro East Mass Transit District tax fund
23established under paragraph (h) of this Section.
24    If a tax is imposed under this subsection (b), a tax shall
25also be imposed under subsections (c) and (d) of this Section.
26    For the purpose of determining whether a tax authorized

 

 

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1under this Section is applicable, a retail sale, by a producer
2of coal or other mineral mined in Illinois, is a sale at retail
3at the place where the coal or other mineral mined in Illinois
4is extracted from the earth. This paragraph does not apply to
5coal or other mineral when it is delivered or shipped by the
6seller to the purchaser at a point outside Illinois so that the
7sale is exempt under the Federal Constitution as a sale in
8interstate or foreign commerce.
9    No tax shall be imposed or collected under this subsection
10on the sale of a motor vehicle in this State to a resident of
11another state if that motor vehicle will not be titled in this
12State.
13    Nothing in this Section shall be construed to authorize the
14Metro East Mass Transit District to impose a tax upon the
15privilege of engaging in any business which under the
16Constitution of the United States may not be made the subject
17of taxation by this State.
18    (c) If a tax has been imposed under subsection (b), a Metro
19East Mass Transit District Service Occupation Tax shall also be
20imposed upon all persons engaged, in the district, in the
21business of making sales of service, who, as an incident to
22making those sales of service, transfer tangible personal
23property within the District, either in the form of tangible
24personal property or in the form of real estate as an incident
25to a sale of service. The tax rate shall be 1/4%, or as
26authorized under subsection (d-5) of this Section, of the

 

 

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1selling price of tangible personal property so transferred
2within the district, except that the rate of tax imposed in
3these Counties under this Section on sales of aviation fuel on
4or after December 1, 2019 shall be 0.25% in Madison County
5unless the Metro-East Mass Transit District in Madison County
6has an "airport-related purpose" and any additional amount
7authorized under subsection (d-5) is expended for
8airport-related purposes. If there is no airport-related
9purpose to which aviation fuel tax revenue is dedicated, then
10aviation fuel is excluded from any future increase in the tax.
11The rate in St. Clair County shall be 0.25% unless the
12Metro-East Mass Transit District in St. Clair County has an
13"airport-related purpose" and the additional 0.50% of the 0.75%
14tax on aviation fuel is expended for airport-related purposes.
15If there is no airport-related purpose to which aviation fuel
16tax revenue is dedicated, then aviation fuel is excluded from
17the tax.
18    On or before December 1, 2019, and on or before each May 1
19and November 1 thereafter, each Metro-East Mass Transit
20District and Madison and St. Clair Counties must certify to the
21Department of Transportation, in the form and manner required
22by the Department, whether they have an airport-related
23purpose, which would allow any Retailers' Occupation Tax and
24Service Occupation Tax imposed under this Act to include tax on
25aviation fuel. On or before October 1, 2019, and on or before
26each May 1 and November 1 thereafter, the Department of

 

 

HB2682- 345 -LRB101 09562 HLH 54660 b

1Transportation shall provide to the Department of Revenue, a
2list of units of local government which have certified to the
3Department of Transportation that they have airport-related
4purposes, which would allow any Retailers' Occupation Tax and
5Service Occupation Tax imposed by the unit of local government
6to include tax on aviation fuel. All disputes regarding whether
7or not a unit of local government has an airport-related
8purpose shall be resolved by the Department of Transportation.
9    For purposes of this Act, "airport-related purposes" has
10the meaning ascribed in Section 6z-20.2 of the State Finance
11Act. This exclusion for aviation fuel only applies for so long
12as the revenue use requirements of 49 U.S.C. 47107(b) and 49
13U.S.C. 47133 are binding on the District.
14    The tax imposed under this paragraph and all civil
15penalties that may be assessed as an incident thereof shall be
16collected and enforced by the State Department of Revenue. The
17Department shall have full power to administer and enforce this
18paragraph; to collect all taxes and penalties due hereunder; to
19dispose of taxes and penalties so collected in the manner
20hereinafter provided; and to determine all rights to credit
21memoranda arising on account of the erroneous payment of tax or
22penalty hereunder. In the administration of, and compliance
23with this paragraph, the Department and persons who are subject
24to this paragraph shall have the same rights, remedies,
25privileges, immunities, powers and duties, and be subject to
26the same conditions, restrictions, limitations, penalties,

 

 

HB2682- 346 -LRB101 09562 HLH 54660 b

1exclusions, exemptions and definitions of terms and employ the
2same modes of procedure as are prescribed in Sections 1a-1, 2
3(except that the reference to State in the definition of
4supplier maintaining a place of business in this State shall
5mean the Authority), 2a, 3 through 3-50 (in respect to all
6provisions therein other than the State rate of tax), 4 (except
7that the reference to the State shall be to the Authority), 5,
87, 8 (except that the jurisdiction to which the tax shall be a
9debt to the extent indicated in that Section 8 shall be the
10District), 9 (except as to the disposition of taxes and
11penalties collected, and except that the returned merchandise
12credit for this tax may not be taken against any State tax, and
13except that the retailer's discount is not allowed for taxes
14paid on aviation fuel that are deposited into the Local
15Government Aviation Trust Fund), 10, 11, 12 (except the
16reference therein to Section 2b of the Retailers' Occupation
17Tax Act), 13 (except that any reference to the State shall mean
18the District), the first paragraph of Section 15, 16, 17, 18,
1919 and 20 of the Service Occupation Tax Act and Section 3-7 of
20the Uniform Penalty and Interest Act, as fully as if those
21provisions were set forth herein.
22    Persons subject to any tax imposed under the authority
23granted in this paragraph may reimburse themselves for their
24serviceman's tax liability hereunder by separately stating the
25tax as an additional charge, which charge may be stated in
26combination, in a single amount, with State tax that servicemen

 

 

HB2682- 347 -LRB101 09562 HLH 54660 b

1are authorized to collect under the Service Use Tax Act, in
2accordance with such bracket schedules as the Department may
3prescribe.
4    Whenever the Department determines that a refund should be
5made under this paragraph to a claimant instead of issuing a
6credit memorandum, the Department shall notify the State
7Comptroller, who shall cause the warrant to be drawn for the
8amount specified, and to the person named, in the notification
9from the Department. The refund shall be paid by the State
10Treasurer out of the Metro East Mass Transit District tax fund
11established under paragraph (h) of this Section.
12    Nothing in this paragraph shall be construed to authorize
13the District to impose a tax upon the privilege of engaging in
14any business which under the Constitution of the United States
15may not be made the subject of taxation by the State.
16    (d) If a tax has been imposed under subsection (b), a Metro
17East Mass Transit District Use Tax shall also be imposed upon
18the privilege of using, in the district, any item of tangible
19personal property that is purchased outside the district at
20retail from a retailer, and that is titled or registered with
21an agency of this State's government, at a rate of 1/4%, or as
22authorized under subsection (d-5) of this Section, of the
23selling price of the tangible personal property within the
24District, as "selling price" is defined in the Use Tax Act. The
25tax shall be collected from persons whose Illinois address for
26titling or registration purposes is given as being in the

 

 

HB2682- 348 -LRB101 09562 HLH 54660 b

1District. The tax shall be collected by the Department of
2Revenue for the Metro East Mass Transit District. The tax must
3be paid to the State, or an exemption determination must be
4obtained from the Department of Revenue, before the title or
5certificate of registration for the property may be issued. The
6tax or proof of exemption may be transmitted to the Department
7by way of the State agency with which, or the State officer
8with whom, the tangible personal property must be titled or
9registered if the Department and the State agency or State
10officer determine that this procedure will expedite the
11processing of applications for title or registration.
12    The Department shall have full power to administer and
13enforce this paragraph; to collect all taxes, penalties and
14interest due hereunder; to dispose of taxes, penalties and
15interest so collected in the manner hereinafter provided; and
16to determine all rights to credit memoranda or refunds arising
17on account of the erroneous payment of tax, penalty or interest
18hereunder. In the administration of, and compliance with, this
19paragraph, the Department and persons who are subject to this
20paragraph shall have the same rights, remedies, privileges,
21immunities, powers and duties, and be subject to the same
22conditions, restrictions, limitations, penalties, exclusions,
23exemptions and definitions of terms and employ the same modes
24of procedure, as are prescribed in Sections 2 (except the
25definition of "retailer maintaining a place of business in this
26State"), 3 through 3-80 (except provisions pertaining to the

 

 

HB2682- 349 -LRB101 09562 HLH 54660 b

1State rate of tax, and except provisions concerning collection
2or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
319 (except the portions pertaining to claims by retailers and
4except the last paragraph concerning refunds), 20, 21 and 22 of
5the Use Tax Act and Section 3-7 of the Uniform Penalty and
6Interest Act, that are not inconsistent with this paragraph, as
7fully as if those provisions were set forth herein.
8    Whenever the Department determines that a refund should be
9made under this paragraph to a claimant instead of issuing a
10credit memorandum, the Department shall notify the State
11Comptroller, who shall cause the order to be drawn for the
12amount specified, and to the person named, in the notification
13from the Department. The refund shall be paid by the State
14Treasurer out of the Metro East Mass Transit District tax fund
15established under paragraph (h) of this Section.
16    (d-5) (A) The county board of any county participating in
17the Metro East Mass Transit District may authorize, by
18ordinance, a referendum on the question of whether the tax
19rates for the Metro East Mass Transit District Retailers'
20Occupation Tax, the Metro East Mass Transit District Service
21Occupation Tax, and the Metro East Mass Transit District Use
22Tax for the District should be increased from 0.25% to 0.75%.
23Upon adopting the ordinance, the county board shall certify the
24proposition to the proper election officials who shall submit
25the proposition to the voters of the District at the next
26election, in accordance with the general election law.

 

 

HB2682- 350 -LRB101 09562 HLH 54660 b

1    The proposition shall be in substantially the following
2form:
3        Shall the tax rates for the Metro East Mass Transit
4    District Retailers' Occupation Tax, the Metro East Mass
5    Transit District Service Occupation Tax, and the Metro East
6    Mass Transit District Use Tax be increased from 0.25% to
7    0.75%?
8    (B) Two thousand five hundred electors of any Metro East
9Mass Transit District may petition the Chief Judge of the
10Circuit Court, or any judge of that Circuit designated by the
11Chief Judge, in which that District is located to cause to be
12submitted to a vote of the electors the question whether the
13tax rates for the Metro East Mass Transit District Retailers'
14Occupation Tax, the Metro East Mass Transit District Service
15Occupation Tax, and the Metro East Mass Transit District Use
16Tax for the District should be increased from 0.25% to 0.75%.
17    Upon submission of such petition the court shall set a date
18not less than 10 nor more than 30 days thereafter for a hearing
19on the sufficiency thereof. Notice of the filing of such
20petition and of such date shall be given in writing to the
21District and the County Clerk at least 7 days before the date
22of such hearing.
23    If such petition is found sufficient, the court shall enter
24an order to submit that proposition at the next election, in
25accordance with general election law.
26    The form of the petition shall be in substantially the

 

 

HB2682- 351 -LRB101 09562 HLH 54660 b

1following form: To the Circuit Court of the County of (name of
2county):
3        We, the undersigned electors of the (name of transit
4    district), respectfully petition your honor to submit to a
5    vote of the electors of (name of transit district) the
6    following proposition:
7        Shall the tax rates for the Metro East Mass Transit
8    District Retailers' Occupation Tax, the Metro East Mass
9    Transit District Service Occupation Tax, and the Metro East
10    Mass Transit District Use Tax be increased from 0.25% to
11    0.75%?
12        Name                Address, with Street and Number.
13..............................................................
14..............................................................
15    (C) The votes shall be recorded as "YES" or "NO". If a
16majority of all votes cast on the proposition are for the
17increase in the tax rates, the Metro East Mass Transit District
18shall begin imposing the increased rates in the District, and
19the Department of Revenue shall begin collecting the increased
20amounts, as provided under this Section. An ordinance imposing
21or discontinuing a tax hereunder or effecting a change in the
22rate thereof shall be adopted and a certified copy thereof
23filed with the Department on or before the first day of
24October, whereupon the Department shall proceed to administer
25and enforce this Section as of the first day of January next
26following the adoption and filing, or on or before the first

 

 

HB2682- 352 -LRB101 09562 HLH 54660 b

1day of April, whereupon the Department shall proceed to
2administer and enforce this Section as of the first day of July
3next following the adoption and filing.
4    (D) If the voters have approved a referendum under this
5subsection, before November 1, 1994, to increase the tax rate
6under this subsection, the Metro East Mass Transit District
7Board of Trustees may adopt by a majority vote an ordinance at
8any time before January 1, 1995 that excludes from the rate
9increase tangible personal property that is titled or
10registered with an agency of this State's government. The
11ordinance excluding titled or registered tangible personal
12property from the rate increase must be filed with the
13Department at least 15 days before its effective date. At any
14time after adopting an ordinance excluding from the rate
15increase tangible personal property that is titled or
16registered with an agency of this State's government, the Metro
17East Mass Transit District Board of Trustees may adopt an
18ordinance applying the rate increase to that tangible personal
19property. The ordinance shall be adopted, and a certified copy
20of that ordinance shall be filed with the Department, on or
21before October 1, whereupon the Department shall proceed to
22administer and enforce the rate increase against tangible
23personal property titled or registered with an agency of this
24State's government as of the following January 1. After
25December 31, 1995, any reimposed rate increase in effect under
26this subsection shall no longer apply to tangible personal

 

 

HB2682- 353 -LRB101 09562 HLH 54660 b

1property titled or registered with an agency of this State's
2government. Beginning January 1, 1996, the Board of Trustees of
3any Metro East Mass Transit District may never reimpose a
4previously excluded tax rate increase on tangible personal
5property titled or registered with an agency of this State's
6government. After July 1, 2004, if the voters have approved a
7referendum under this subsection to increase the tax rate under
8this subsection, the Metro East Mass Transit District Board of
9Trustees may adopt by a majority vote an ordinance that
10excludes from the rate increase tangible personal property that
11is titled or registered with an agency of this State's
12government. The ordinance excluding titled or registered
13tangible personal property from the rate increase shall be
14adopted, and a certified copy of that ordinance shall be filed
15with the Department on or before October 1, whereupon the
16Department shall administer and enforce this exclusion from the
17rate increase as of the following January 1, or on or before
18April 1, whereupon the Department shall administer and enforce
19this exclusion from the rate increase as of the following July
201. The Board of Trustees of any Metro East Mass Transit
21District may never reimpose a previously excluded tax rate
22increase on tangible personal property titled or registered
23with an agency of this State's government.
24    (d-6) If the Board of Trustees of any Metro East Mass
25Transit District has imposed a rate increase under subsection
26(d-5) and filed an ordinance with the Department of Revenue

 

 

HB2682- 354 -LRB101 09562 HLH 54660 b

1excluding titled property from the higher rate, then that Board
2may, by ordinance adopted with the concurrence of two-thirds of
3the then trustees, impose throughout the District a fee. The
4fee on the excluded property shall not exceed $20 per retail
5transaction or an amount equal to the amount of tax excluded,
6whichever is less, on tangible personal property that is titled
7or registered with an agency of this State's government.
8Beginning July 1, 2004, the fee shall apply only to titled
9property that is subject to either the Metro East Mass Transit
10District Retailers' Occupation Tax or the Metro East Mass
11Transit District Service Occupation Tax. No fee shall be
12imposed or collected under this subsection on the sale of a
13motor vehicle in this State to a resident of another state if
14that motor vehicle will not be titled in this State.
15    (d-7) Until June 30, 2004, if a fee has been imposed under
16subsection (d-6), a fee shall also be imposed upon the
17privilege of using, in the district, any item of tangible
18personal property that is titled or registered with any agency
19of this State's government, in an amount equal to the amount of
20the fee imposed under subsection (d-6).
21    (d-7.1) Beginning July 1, 2004, any fee imposed by the
22Board of Trustees of any Metro East Mass Transit District under
23subsection (d-6) and all civil penalties that may be assessed
24as an incident of the fees shall be collected and enforced by
25the State Department of Revenue. Reference to "taxes" in this
26Section shall be construed to apply to the administration,

 

 

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1payment, and remittance of all fees under this Section. For
2purposes of any fee imposed under subsection (d-6), 4% of the
3fee, penalty, and interest received by the Department in the
4first 12 months that the fee is collected and enforced by the
5Department and 2% of the fee, penalty, and interest following
6the first 12 months (except the amount collected on aviation
7fuel sold on or after December 1, 2019) shall be deposited into
8the Tax Compliance and Administration Fund and shall be used by
9the Department, subject to appropriation, to cover the costs of
10the Department. No retailers' discount shall apply to any fee
11imposed under subsection (d-6).
12    (d-8) No item of titled property shall be subject to both
13the higher rate approved by referendum, as authorized under
14subsection (d-5), and any fee imposed under subsection (d-6) or
15(d-7).
16    (d-9) (Blank).
17    (d-10) (Blank).
18    (e) A certificate of registration issued by the State
19Department of Revenue to a retailer under the Retailers'
20Occupation Tax Act or under the Service Occupation Tax Act
21shall permit the registrant to engage in a business that is
22taxed under the tax imposed under paragraphs (b), (c) or (d) of
23this Section and no additional registration shall be required
24under the tax. A certificate issued under the Use Tax Act or
25the Service Use Tax Act shall be applicable with regard to any
26tax imposed under paragraph (c) of this Section.

 

 

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1    (f) (Blank).
2    (g) Any ordinance imposing or discontinuing any tax under
3this Section shall be adopted and a certified copy thereof
4filed with the Department on or before June 1, whereupon the
5Department of Revenue shall proceed to administer and enforce
6this Section on behalf of the Metro East Mass Transit District
7as of September 1 next following such adoption and filing.
8Beginning January 1, 1992, an ordinance or resolution imposing
9or discontinuing the tax hereunder shall be adopted and a
10certified copy thereof filed with the Department on or before
11the first day of July, whereupon the Department shall proceed
12to administer and enforce this Section as of the first day of
13October next following such adoption and filing. Beginning
14January 1, 1993, except as provided in subsection (d-5) of this
15Section, an ordinance or resolution imposing or discontinuing
16the tax hereunder shall be adopted and a certified copy thereof
17filed with the Department on or before the first day of
18October, whereupon the Department shall proceed to administer
19and enforce this Section as of the first day of January next
20following such adoption and filing, or, beginning January 1,
212004, on or before the first day of April, whereupon the
22Department shall proceed to administer and enforce this Section
23as of the first day of July next following the adoption and
24filing.
25    (h) Except as provided in subsection (d-7.1), the State
26Department of Revenue shall, upon collecting any taxes as

 

 

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1provided in this Section, pay the taxes over to the State
2Treasurer as trustee for the District. The taxes shall be held
3in a trust fund outside the State Treasury. Taxes and penalties
4collected in St. Clair Counties on aviation fuel sold on or
5after December 1, 2019 from the 0.50% of the 0.75% rate shall
6be immediately paid over by the Department to the State
7Treasurer, ex officio, as trustee, for deposit into the Local
8Government Aviation Trust Fund. The Department shall only pay
9moneys into the Local Government Aviation Trust Fund under this
10Act for so long as the revenue use requirements of 49 U.S.C.
1147107(b) and 49 U.S.C. 47133 are binding on the District.
12    As soon as possible after the first day of each month,
13beginning January 1, 2011, upon certification of the Department
14of Revenue, the Comptroller shall order transferred, and the
15Treasurer shall transfer, to the STAR Bonds Revenue Fund the
16local sales tax increment, as defined in the Innovation
17Development and Economy Act, collected under this Section
18during the second preceding calendar month for sales within a
19STAR bond district. The Department shall make this
20certification only if the local mass transit district imposes a
21tax on real property as provided in the definition of "local
22sales taxes" under the Innovation Development and Economy Act.
23    After the monthly transfer to the STAR Bonds Revenue Fund,
24on or before the 25th day of each calendar month, the State
25Department of Revenue shall prepare and certify to the
26Comptroller of the State of Illinois the amount to be paid to

 

 

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1the District, which shall be the amount (not including credit
2memoranda and not including taxes and penalties collected on
3aviation fuel sold on or after December 1, 2019) collected
4under this Section during the second preceding calendar month
5by the Department plus an amount the Department determines is
6necessary to offset any amounts that were erroneously paid to a
7different taxing body, and not including any amount equal to
8the amount of refunds made during the second preceding calendar
9month by the Department on behalf of the District, and not
10including any amount that the Department determines is
11necessary to offset any amounts that were payable to a
12different taxing body but were erroneously paid to the
13District, and less any amounts that are transferred to the STAR
14Bonds Revenue Fund, less 1.5% of the remainder, which the
15Department shall transfer into the Tax Compliance and
16Administration Fund. The Department, at the time of each
17monthly disbursement to the District, shall prepare and certify
18to the State Comptroller the amount to be transferred into the
19Tax Compliance and Administration Fund under this subsection.
20Within 10 days after receipt by the Comptroller of the
21certification of the amount to be paid to the District and the
22Tax Compliance and Administration Fund, the Comptroller shall
23cause an order to be drawn for payment for the amount in
24accordance with the direction in the certification.
25(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
26100-587, eff. 6-4-18.)
 

 

 

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1    Section 70. The Regional Transportation Authority Act is
2amended by changing Section 4.03 as follows:
 
3    (70 ILCS 3615/4.03)  (from Ch. 111 2/3, par. 704.03)
4    Sec. 4.03. Taxes.
5    (a) In order to carry out any of the powers or purposes of
6the Authority, the Board may by ordinance adopted with the
7concurrence of 12 of the then Directors, impose throughout the
8metropolitan region any or all of the taxes provided in this
9Section. Except as otherwise provided in this Act, taxes
10imposed under this Section and civil penalties imposed incident
11thereto shall be collected and enforced by the State Department
12of Revenue. The Department shall have the power to administer
13and enforce the taxes and to determine all rights for refunds
14for erroneous payments of the taxes. Nothing in Public Act
1595-708 is intended to invalidate any taxes currently imposed by
16the Authority. The increased vote requirements to impose a tax
17shall only apply to actions taken after January 1, 2008 (the
18effective date of Public Act 95-708).
19    (b) The Board may impose a public transportation tax upon
20all persons engaged in the metropolitan region in the business
21of selling at retail motor fuel for operation of motor vehicles
22upon public highways. The tax shall be at a rate not to exceed
235% of the gross receipts from the sales of motor fuel in the
24course of the business. As used in this Act, the term "motor

 

 

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1fuel" shall have the same meaning as in the Motor Fuel Tax Law.
2The Board may provide for details of the tax. The provisions of
3any tax shall conform, as closely as may be practicable, to the
4provisions of the Municipal Retailers Occupation Tax Act,
5including without limitation, conformity to penalties with
6respect to the tax imposed and as to the powers of the State
7Department of Revenue to promulgate and enforce rules and
8regulations relating to the administration and enforcement of
9the provisions of the tax imposed, except that reference in the
10Act to any municipality shall refer to the Authority and the
11tax shall be imposed only with regard to receipts from sales of
12motor fuel in the metropolitan region, at rates as limited by
13this Section.
14    (c) In connection with the tax imposed under paragraph (b)
15of this Section the Board may impose a tax upon the privilege
16of using in the metropolitan region motor fuel for the
17operation of a motor vehicle upon public highways, the tax to
18be at a rate not in excess of the rate of tax imposed under
19paragraph (b) of this Section. The Board may provide for
20details of the tax.
21    (d) The Board may impose a motor vehicle parking tax upon
22the privilege of parking motor vehicles at off-street parking
23facilities in the metropolitan region at which a fee is
24charged, and may provide for reasonable classifications in and
25exemptions to the tax, for administration and enforcement
26thereof and for civil penalties and refunds thereunder and may

 

 

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1provide criminal penalties thereunder, the maximum penalties
2not to exceed the maximum criminal penalties provided in the
3Retailers' Occupation Tax Act. The Authority may collect and
4enforce the tax itself or by contract with any unit of local
5government. The State Department of Revenue shall have no
6responsibility for the collection and enforcement unless the
7Department agrees with the Authority to undertake the
8collection and enforcement. As used in this paragraph, the term
9"parking facility" means a parking area or structure having
10parking spaces for more than 2 vehicles at which motor vehicles
11are permitted to park in return for an hourly, daily, or other
12periodic fee, whether publicly or privately owned, but does not
13include parking spaces on a public street, the use of which is
14regulated by parking meters.
15    (e) The Board may impose a Regional Transportation
16Authority Retailers' Occupation Tax upon all persons engaged in
17the business of selling tangible personal property at retail in
18the metropolitan region. In Cook County, the tax rate shall be
191.25% of the gross receipts from sales of tangible personal
20property taxed at the 1% rate under the Retailers' Occupation
21Tax Act, and 1% of the gross receipts from other taxable sales
22made in the course of that business. In DuPage, Kane, Lake,
23McHenry, and Will counties Counties, the tax rate shall be
240.75% of the gross receipts from all taxable sales made in the
25course of that business. except that the rate of tax imposed in
26these Counties under this Section on sales of aviation fuel on

 

 

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1or after December 1, 2019 shall be 0.25% unless the Regional
2Transportation Authority in DuPage, Kane, Lake, McHenry and
3Will counties has an "airport-related purpose" and the
4additional 0.50% of the 0.75% tax on aviation fuel is expended
5for airport-related purposes. If there is no airport-related
6purpose to which aviation fuel tax revenue is dedicated, then
7aviation fuel is excluded from the tax The tax imposed under
8this Section and all civil penalties that may be assessed as an
9incident thereof shall be collected and enforced by the State
10Department of Revenue. The Department shall have full power to
11administer and enforce this Section; to collect all taxes and
12penalties so collected in the manner hereinafter provided; and
13to determine all rights to credit memoranda arising on account
14of the erroneous payment of tax or penalty hereunder. In the
15administration of, and compliance with this Section, the
16Department and persons who are subject to this Section shall
17have the same rights, remedies, privileges, immunities, powers
18and duties, and be subject to the same conditions,
19restrictions, limitations, penalties, exclusions, exemptions
20and definitions of terms, and employ the same modes of
21procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
221e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
23therein other than the State rate of tax), 2c, 3 (except as to
24the disposition of taxes and penalties collected, and except
25that the retailer's discount is not allowed for taxes paid on
26aviation fuel that are deposited into the Local Government

 

 

HB2682- 363 -LRB101 09562 HLH 54660 b

1Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
25j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
3Retailers' Occupation Tax Act and Section 3-7 of the Uniform
4Penalty and Interest Act, as fully as if those provisions were
5set forth herein.
6    On or before September 1, 2019, and on or before each April
71 and October 1 thereafter, the Authority and Cook, DuPage,
8Kane, Lake, McHenry, and Will counties must certify to the
9Department of Transportation, in the form and manner required
10by the Department, whether they have an airport-related
11purpose, which would allow any Retailers' Occupation Tax and
12Service Occupation Tax imposed under this Act to include tax on
13aviation fuel. On or before October 1, 2017, and on or before
14each May 1 and November 1 thereafter, the Department of
15Transportation shall provide to the Department of Revenue, a
16list of units of local government which have certified to the
17Department of Transportation that they have airport-related
18purposes, which would allow any Retailers' Occupation Tax and
19Service Occupation Tax imposed by the unit of local government
20to include tax on aviation fuel. All disputes regarding whether
21or not a unit of local government has an airport-related
22purpose shall be resolved by the Department of Transportation.
23    For purposes of this Act, "airport-related purposes" has
24the meaning ascribed in Section 6z-20.2 of the State Finance
25Act. This exclusion for aviation fuel only applies for so long
26as the revenue use requirements of 49 U.S.C. §47107(b) and 49

 

 

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1U.S.C. §47133 are binding on the Authority.
2    Persons subject to any tax imposed under the authority
3granted in this Section may reimburse themselves for their
4seller's tax liability hereunder by separately stating the tax
5as an additional charge, which charge may be stated in
6combination in a single amount with State taxes that sellers
7are required to collect under the Use Tax Act, under any
8bracket schedules the Department may prescribe.
9    Whenever the Department determines that a refund should be
10made under this Section to a claimant instead of issuing a
11credit memorandum, the Department shall notify the State
12Comptroller, who shall cause the warrant to be drawn for the
13amount specified, and to the person named, in the notification
14from the Department. The refund shall be paid by the State
15Treasurer out of the Regional Transportation Authority tax fund
16established under paragraph (n) of this Section.
17    If a tax is imposed under this subsection (e), a tax shall
18also be imposed under subsections (f) and (g) of this Section.
19    For the purpose of determining whether a tax authorized
20under this Section is applicable, a retail sale by a producer
21of coal or other mineral mined in Illinois, is a sale at retail
22at the place where the coal or other mineral mined in Illinois
23is extracted from the earth. This paragraph does not apply to
24coal or other mineral when it is delivered or shipped by the
25seller to the purchaser at a point outside Illinois so that the
26sale is exempt under the Federal Constitution as a sale in

 

 

HB2682- 365 -LRB101 09562 HLH 54660 b

1interstate or foreign commerce.
2    No tax shall be imposed or collected under this subsection
3on the sale of a motor vehicle in this State to a resident of
4another state if that motor vehicle will not be titled in this
5State.
6    Nothing in this Section shall be construed to authorize the
7Regional Transportation Authority to impose a tax upon the
8privilege of engaging in any business that under the
9Constitution of the United States may not be made the subject
10of taxation by this State.
11    (f) If a tax has been imposed under paragraph (e), a
12Regional Transportation Authority Service Occupation Tax shall
13also be imposed upon all persons engaged, in the metropolitan
14region in the business of making sales of service, who as an
15incident to making the sales of service, transfer tangible
16personal property within the metropolitan region, either in the
17form of tangible personal property or in the form of real
18estate as an incident to a sale of service. In Cook County, the
19tax rate shall be: (1) 1.25% of the serviceman's cost price of
20food prepared for immediate consumption and transferred
21incident to a sale of service subject to the service occupation
22tax by an entity licensed under the Hospital Licensing Act, the
23Nursing Home Care Act, the Specialized Mental Health
24Rehabilitation Act of 2013, the ID/DD Community Care Act, or
25the MC/DD Act that is located in the metropolitan region; (2)
261.25% of the selling price of tangible personal property taxed

 

 

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1at the 1% rate under the Service Occupation Tax Act; and (3) 1%
2of the selling price from other taxable sales of tangible
3personal property transferred. In DuPage, Kane, Lake, McHenry
4and Will counties, Counties the rate shall be 0.75% of the
5selling price of all tangible personal property transferred
6except that the rate of tax imposed in these Counties under
7this Section on sales of aviation fuel on or after December 1,
82019 shall be 0.25% unless the Regional Transportation
9Authority in DuPage, Kane, Lake, McHenry and Will counties has
10an "airport-related purpose" and the additional 0.50% of the
110.75% tax on aviation fuel is expended for airport-related
12purposes. If there is no airport-related purpose to which
13aviation fuel tax revenue is dedicated, then aviation fuel is
14excluded from the tax.
15    On or before September 1, 2019, and on or before each April
161 and October 1 thereafter, the Authority and Cook, DuPage,
17Kane, Lake, McHenry, and Will counties must certify to the
18Department of Transportation, in the form and manner required
19by the Department, whether they have an airport-related
20purpose, which would allow any Retailers' Occupation Tax and
21Service Occupation Tax imposed under this Act to include tax on
22aviation fuel. On or before October 1, 2017, and on or before
23each May 1 and November 1 thereafter, the Department of
24Transportation shall provide to the Department of Revenue, a
25list of units of local government which have certified to the
26Department of Transportation that they have airport-related

 

 

HB2682- 367 -LRB101 09562 HLH 54660 b

1purposes, which would allow any Retailers' Occupation Tax and
2Service Occupation Tax imposed by the unit of local government
3to include tax on aviation fuel. All disputes regarding whether
4or not a unit of local government has an airport-related
5purpose shall be resolved by the Department of Transportation.
6    For purposes of this Act, "airport-related purposes" has
7the meaning ascribed in Section 6z-20.2 of the State Finance
8Act. This exclusion for aviation fuel only applies for so long
9as the revenue use requirements of 49 U.S.C. §47107(b) and 49
10U.S.C. §47133 are binding on the Authority.
11    The tax imposed under this paragraph and all civil
12penalties that may be assessed as an incident thereof shall be
13collected and enforced by the State Department of Revenue. The
14Department shall have full power to administer and enforce this
15paragraph; to collect all taxes and penalties due hereunder; to
16dispose of taxes and penalties collected in the manner
17hereinafter provided; and to determine all rights to credit
18memoranda arising on account of the erroneous payment of tax or
19penalty hereunder. In the administration of and compliance with
20this paragraph, the Department and persons who are subject to
21this paragraph shall have the same rights, remedies,
22privileges, immunities, powers and duties, and be subject to
23the same conditions, restrictions, limitations, penalties,
24exclusions, exemptions and definitions of terms, and employ the
25same modes of procedure, as are prescribed in Sections 1a-1, 2,
262a, 3 through 3-50 (in respect to all provisions therein other

 

 

HB2682- 368 -LRB101 09562 HLH 54660 b

1than the State rate of tax), 4 (except that the reference to
2the State shall be to the Authority), 5, 7, 8 (except that the
3jurisdiction to which the tax shall be a debt to the extent
4indicated in that Section 8 shall be the Authority), 9 (except
5as to the disposition of taxes and penalties collected, and
6except that the returned merchandise credit for this tax may
7not be taken against any State tax, and except that the
8retailer's discount is not allowed for taxes paid on aviation
9fuel that are deposited into the Local Government Aviation
10Trust Fund), 10, 11, 12 (except the reference therein to
11Section 2b of the Retailers' Occupation Tax Act), 13 (except
12that any reference to the State shall mean the Authority), the
13first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
14Service Occupation Tax Act and Section 3-7 of the Uniform
15Penalty and Interest Act, as fully as if those provisions were
16set forth herein.
17    Persons subject to any tax imposed under the authority
18granted in this paragraph may reimburse themselves for their
19serviceman's tax liability hereunder by separately stating the
20tax as an additional charge, that charge may be stated in
21combination in a single amount with State tax that servicemen
22are authorized to collect under the Service Use Tax Act, under
23any bracket schedules the Department may prescribe.
24    Whenever the Department determines that a refund should be
25made under this paragraph to a claimant instead of issuing a
26credit memorandum, the Department shall notify the State

 

 

HB2682- 369 -LRB101 09562 HLH 54660 b

1Comptroller, who shall cause the warrant to be drawn for the
2amount specified, and to the person named in the notification
3from the Department. The refund shall be paid by the State
4Treasurer out of the Regional Transportation Authority tax fund
5established under paragraph (n) of this Section.
6    Nothing in this paragraph shall be construed to authorize
7the Authority to impose a tax upon the privilege of engaging in
8any business that under the Constitution of the United States
9may not be made the subject of taxation by the State.
10    (g) If a tax has been imposed under paragraph (e), a tax
11shall also be imposed upon the privilege of using in the
12metropolitan region, any item of tangible personal property
13that is purchased outside the metropolitan region at retail
14from a retailer, and that is titled or registered with an
15agency of this State's government. In Cook County, the tax rate
16shall be 1% of the selling price of the tangible personal
17property, as "selling price" is defined in the Use Tax Act. In
18DuPage, Kane, Lake, McHenry and Will counties, the tax rate
19shall be 0.75% of the selling price of the tangible personal
20property, as "selling price" is defined in the Use Tax Act. The
21tax shall be collected from persons whose Illinois address for
22titling or registration purposes is given as being in the
23metropolitan region. The tax shall be collected by the
24Department of Revenue for the Regional Transportation
25Authority. The tax must be paid to the State, or an exemption
26determination must be obtained from the Department of Revenue,

 

 

HB2682- 370 -LRB101 09562 HLH 54660 b

1before the title or certificate of registration for the
2property may be issued. The tax or proof of exemption may be
3transmitted to the Department by way of the State agency with
4which, or the State officer with whom, the tangible personal
5property must be titled or registered if the Department and the
6State agency or State officer determine that this procedure
7will expedite the processing of applications for title or
8registration.
9    The Department shall have full power to administer and
10enforce this paragraph; to collect all taxes, penalties, and
11interest due hereunder; to dispose of taxes, penalties, and
12interest collected in the manner hereinafter provided; and to
13determine all rights to credit memoranda or refunds arising on
14account of the erroneous payment of tax, penalty, or interest
15hereunder. In the administration of and compliance with this
16paragraph, the Department and persons who are subject to this
17paragraph shall have the same rights, remedies, privileges,
18immunities, powers and duties, and be subject to the same
19conditions, restrictions, limitations, penalties, exclusions,
20exemptions and definitions of terms and employ the same modes
21of procedure, as are prescribed in Sections 2 (except the
22definition of "retailer maintaining a place of business in this
23State"), 3 through 3-80 (except provisions pertaining to the
24State rate of tax, and except provisions concerning collection
25or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
2619 (except the portions pertaining to claims by retailers and

 

 

HB2682- 371 -LRB101 09562 HLH 54660 b

1except the last paragraph concerning refunds), 20, 21 and 22 of
2the Use Tax Act, and are not inconsistent with this paragraph,
3as fully as if those provisions were set forth herein.
4    Whenever the Department determines that a refund should be
5made under this paragraph to a claimant instead of issuing a
6credit memorandum, the Department shall notify the State
7Comptroller, who shall cause the order to be drawn for the
8amount specified, and to the person named in the notification
9from the Department. The refund shall be paid by the State
10Treasurer out of the Regional Transportation Authority tax fund
11established under paragraph (n) of this Section.
12    (h) The Authority may impose a replacement vehicle tax of
13$50 on any passenger car as defined in Section 1-157 of the
14Illinois Vehicle Code purchased within the metropolitan region
15by or on behalf of an insurance company to replace a passenger
16car of an insured person in settlement of a total loss claim.
17The tax imposed may not become effective before the first day
18of the month following the passage of the ordinance imposing
19the tax and receipt of a certified copy of the ordinance by the
20Department of Revenue. The Department of Revenue shall collect
21the tax for the Authority in accordance with Sections 3-2002
22and 3-2003 of the Illinois Vehicle Code.
23    Except as otherwise provided in this paragraph, the The
24Department shall immediately pay over to the State Treasurer,
25ex officio, as trustee, all taxes collected hereunder Taxes and
26penalties collected in DuPage, Kane, Lake, McHenry and Will

 

 

HB2682- 372 -LRB101 09562 HLH 54660 b

1Counties on aviation fuel sold on or after December 1, 2019
2from the 0.50% of the .75% rate shall be immediately paid over
3by the Department to the State Treasurer, ex officio, as
4trustee, for deposit into the Local Government Aviation Trust
5Fund. The Department shall only pay moneys into the Local
6Government Aviation Trust Fund under this Act for so long as
7the revenue use requirements of 49 U.S.C. §47107(b) and 49
8U.S.C. §47133 are binding on the Authority..
9    As soon as possible after the first day of each month,
10beginning January 1, 2011, upon certification of the Department
11of Revenue, the Comptroller shall order transferred, and the
12Treasurer shall transfer, to the STAR Bonds Revenue Fund the
13local sales tax increment, as defined in the Innovation
14Development and Economy Act, collected under this Section
15during the second preceding calendar month for sales within a
16STAR bond district.
17    After the monthly transfer to the STAR Bonds Revenue Fund,
18on or before the 25th day of each calendar month, the
19Department shall prepare and certify to the Comptroller the
20disbursement of stated sums of money to the Authority. The
21amount to be paid to the Authority shall be the amount
22collected hereunder during the second preceding calendar month
23by the Department, less any amount determined by the Department
24to be necessary for the payment of refunds, and less any
25amounts that are transferred to the STAR Bonds Revenue Fund.
26Within 10 days after receipt by the Comptroller of the

 

 

HB2682- 373 -LRB101 09562 HLH 54660 b

1disbursement certification to the Authority provided for in
2this Section to be given to the Comptroller by the Department,
3the Comptroller shall cause the orders to be drawn for that
4amount in accordance with the directions contained in the
5certification.
6    (i) The Board may not impose any other taxes except as it
7may from time to time be authorized by law to impose.
8    (j) A certificate of registration issued by the State
9Department of Revenue to a retailer under the Retailers'
10Occupation Tax Act or under the Service Occupation Tax Act
11shall permit the registrant to engage in a business that is
12taxed under the tax imposed under paragraphs (b), (e), (f) or
13(g) of this Section and no additional registration shall be
14required under the tax. A certificate issued under the Use Tax
15Act or the Service Use Tax Act shall be applicable with regard
16to any tax imposed under paragraph (c) of this Section.
17    (k) The provisions of any tax imposed under paragraph (c)
18of this Section shall conform as closely as may be practicable
19to the provisions of the Use Tax Act, including without
20limitation conformity as to penalties with respect to the tax
21imposed and as to the powers of the State Department of Revenue
22to promulgate and enforce rules and regulations relating to the
23administration and enforcement of the provisions of the tax
24imposed. The taxes shall be imposed only on use within the
25metropolitan region and at rates as provided in the paragraph.
26    (l) The Board in imposing any tax as provided in paragraphs

 

 

HB2682- 374 -LRB101 09562 HLH 54660 b

1(b) and (c) of this Section, shall, after seeking the advice of
2the State Department of Revenue, provide means for retailers,
3users or purchasers of motor fuel for purposes other than those
4with regard to which the taxes may be imposed as provided in
5those paragraphs to receive refunds of taxes improperly paid,
6which provisions may be at variance with the refund provisions
7as applicable under the Municipal Retailers Occupation Tax Act.
8The State Department of Revenue may provide for certificates of
9registration for users or purchasers of motor fuel for purposes
10other than those with regard to which taxes may be imposed as
11provided in paragraphs (b) and (c) of this Section to
12facilitate the reporting and nontaxability of the exempt sales
13or uses.
14    (m) Any ordinance imposing or discontinuing any tax under
15this Section shall be adopted and a certified copy thereof
16filed with the Department on or before June 1, whereupon the
17Department of Revenue shall proceed to administer and enforce
18this Section on behalf of the Regional Transportation Authority
19as of September 1 next following such adoption and filing.
20Beginning January 1, 1992, an ordinance or resolution imposing
21or discontinuing the tax hereunder shall be adopted and a
22certified copy thereof filed with the Department on or before
23the first day of July, whereupon the Department shall proceed
24to administer and enforce this Section as of the first day of
25October next following such adoption and filing. Beginning
26January 1, 1993, an ordinance or resolution imposing,

 

 

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1increasing, decreasing, or discontinuing the tax hereunder
2shall be adopted and a certified copy thereof filed with the
3Department, whereupon the Department shall proceed to
4administer and enforce this Section as of the first day of the
5first month to occur not less than 60 days following such
6adoption and filing. Any ordinance or resolution of the
7Authority imposing a tax under this Section and in effect on
8August 1, 2007 shall remain in full force and effect and shall
9be administered by the Department of Revenue under the terms
10and conditions and rates of tax established by such ordinance
11or resolution until the Department begins administering and
12enforcing an increased tax under this Section as authorized by
13Public Act 95-708. The tax rates authorized by Public Act
1495-708 are effective only if imposed by ordinance of the
15Authority.
16    (n) Except as otherwise provided in this subsection (n),
17the State Department of Revenue shall, upon collecting any
18taxes as provided in this Section, pay the taxes over to the
19State Treasurer as trustee for the Authority. The taxes shall
20be held in a trust fund outside the State Treasury. On or
21before the 25th day of each calendar month, the State
22Department of Revenue shall prepare and certify to the
23Comptroller of the State of Illinois and to the Authority (i)
24the amount of taxes collected in each county County other than
25Cook County in the metropolitan region, (ii) the amount of
26taxes collected within the City of Chicago, and (iii) the

 

 

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1amount collected in that portion of Cook County outside of
2Chicago, each amount less the amount necessary for the payment
3of refunds to taxpayers located in those areas described in
4items (i), (ii), and (iii), and less 1.5% of the remainder,
5which shall be transferred from the trust fund into the Tax
6Compliance and Administration Fund. The Department, at the time
7of each monthly disbursement to the Authority, shall prepare
8and certify to the State Comptroller the amount to be
9transferred into the Tax Compliance and Administration Fund
10under this subsection. Within 10 days after receipt by the
11Comptroller of the certification of the amounts, the
12Comptroller shall cause an order to be drawn for the transfer
13of the amount certified into the Tax Compliance and
14Administration Fund and the payment of two-thirds of the
15amounts certified in item (i) of this subsection to the
16Authority and one-third of the amounts certified in item (i) of
17this subsection to the respective counties other than Cook
18County and the amount certified in items (ii) and (iii) of this
19subsection to the Authority.
20    In addition to the disbursement required by the preceding
21paragraph, an allocation shall be made in July 1991 and each
22year thereafter to the Regional Transportation Authority. The
23allocation shall be made in an amount equal to the average
24monthly distribution during the preceding calendar year
25(excluding the 2 months of lowest receipts) and the allocation
26shall include the amount of average monthly distribution from

 

 

HB2682- 377 -LRB101 09562 HLH 54660 b

1the Regional Transportation Authority Occupation and Use Tax
2Replacement Fund. The distribution made in July 1992 and each
3year thereafter under this paragraph and the preceding
4paragraph shall be reduced by the amount allocated and
5disbursed under this paragraph in the preceding calendar year.
6The Department of Revenue shall prepare and certify to the
7Comptroller for disbursement the allocations made in
8accordance with this paragraph.
9    (o) Failure to adopt a budget ordinance or otherwise to
10comply with Section 4.01 of this Act or to adopt a Five-year
11Capital Program or otherwise to comply with paragraph (b) of
12Section 2.01 of this Act shall not affect the validity of any
13tax imposed by the Authority otherwise in conformity with law.
14    (p) At no time shall a public transportation tax or motor
15vehicle parking tax authorized under paragraphs (b), (c), and
16(d) of this Section be in effect at the same time as any
17retailers' occupation, use or service occupation tax
18authorized under paragraphs (e), (f), and (g) of this Section
19is in effect.
20    Any taxes imposed under the authority provided in
21paragraphs (b), (c), and (d) shall remain in effect only until
22the time as any tax authorized by paragraph paragraphs (e),
23(f), or (g) of this Section are imposed and becomes effective.
24Once any tax authorized by paragraph paragraphs (e), (f), or
25(g) is imposed the Board may not reimpose taxes as authorized
26in paragraphs (b), (c), and (d) of the Section unless any tax

 

 

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1authorized by paragraph paragraphs (e), (f), or (g) of this
2Section becomes ineffective by means other than an ordinance of
3the Board.
4    (q) Any existing rights, remedies and obligations
5(including enforcement by the Regional Transportation
6Authority) arising under any tax imposed under paragraph
7paragraphs (b), (c), or (d) of this Section shall not be
8affected by the imposition of a tax under paragraph paragraphs
9(e), (f), or (g) of this Section.
10(Source: P.A. 99-180, eff. 7-29-15; 99-217, eff. 7-31-15;
1199-642, eff. 7-28-16; 100-23, eff. 7-6-17; 100-587, eff.
126-4-18; 100-1171, eff. 1-4-19; revised 1-11-19.)
 
13    Section 75. The Water Commission Act of 1985 is amended by
14changing Section 4 as follows:
 
15    (70 ILCS 3720/4)  (from Ch. 111 2/3, par. 254)
16    Sec. 4. Taxes.
17    (a) The board of commissioners of any county water
18commission may, by ordinance, impose throughout the territory
19of the commission any or all of the taxes provided in this
20Section for its corporate purposes. However, no county water
21commission may impose any such tax unless the commission
22certifies the proposition of imposing the tax to the proper
23election officials, who shall submit the proposition to the
24voters residing in the territory at an election in accordance

 

 

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1with the general election law, and the proposition has been
2approved by a majority of those voting on the proposition.
3    The proposition shall be in the form provided in Section 5
4or shall be substantially in the following form:
5-------------------------------------------------------------
6    Shall the (insert corporate
7name of county water commission)           YES
8impose (state type of tax or         ------------------------
9taxes to be imposed) at the                NO
10rate of 1/4%?
11-------------------------------------------------------------
12    Taxes imposed under this Section and civil penalties
13imposed incident thereto shall be collected and enforced by the
14State Department of Revenue. The Department shall have the
15power to administer and enforce the taxes and to determine all
16rights for refunds for erroneous payments of the taxes.
17    (b) The board of commissioners may impose a County Water
18Commission Retailers' Occupation Tax upon all persons engaged
19in the business of selling tangible personal property at retail
20in the territory of the commission at a rate of 1/4% of the
21gross receipts from the sales made in the course of such
22business within the territory. The tax imposed under this
23paragraph and all civil penalties that may be assessed as an
24incident thereof shall be collected and enforced by the State
25Department of Revenue. The Department shall have full power to
26administer and enforce this paragraph; to collect all taxes and

 

 

HB2682- 380 -LRB101 09562 HLH 54660 b

1penalties due hereunder; to dispose of taxes and penalties so
2collected in the manner hereinafter provided; and to determine
3all rights to credit memoranda arising on account of the
4erroneous payment of tax or penalty hereunder. In the
5administration of, and compliance with, this paragraph, the
6Department and persons who are subject to this paragraph shall
7have the same rights, remedies, privileges, immunities, powers
8and duties, and be subject to the same conditions,
9restrictions, limitations, penalties, exclusions, exemptions
10and definitions of terms, and employ the same modes of
11procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
121e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
13therein other than the State rate of tax except that tangible
14personal property taxed at the 1% rate under the Retailers'
15Occupation Tax Act shall not be subject to tax hereunder), 2c,
163 (except as to the disposition of taxes and penalties
17collected, and except that the retailer's discount is not
18allowed for taxes paid on aviation fuel sold on or after
19December 1, 2019), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
205k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, and 13 of the
21Retailers' Occupation Tax Act and Section 3-7 of the Uniform
22Penalty and Interest Act, as fully as if those provisions were
23set forth herein.
24    Persons subject to any tax imposed under the authority
25granted in this paragraph may reimburse themselves for their
26seller's tax liability hereunder by separately stating the tax

 

 

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1as an additional charge, which charge may be stated in
2combination, in a single amount, with State taxes that sellers
3are required to collect under the Use Tax Act and under
4subsection (e) of Section 4.03 of the Regional Transportation
5Authority Act, in accordance with such bracket schedules as the
6Department may prescribe.
7    Whenever the Department determines that a refund should be
8made under this paragraph to a claimant instead of issuing a
9credit memorandum, the Department shall notify the State
10Comptroller, who shall cause the warrant to be drawn for the
11amount specified, and to the person named, in the notification
12from the Department. The refund shall be paid by the State
13Treasurer out of a county water commission tax fund established
14under subsection (g) of this Section.
15    For the purpose of determining whether a tax authorized
16under this paragraph is applicable, a retail sale by a producer
17of coal or other mineral mined in Illinois is a sale at retail
18at the place where the coal or other mineral mined in Illinois
19is extracted from the earth. This paragraph does not apply to
20coal or other mineral when it is delivered or shipped by the
21seller to the purchaser at a point outside Illinois so that the
22sale is exempt under the Federal Constitution as a sale in
23interstate or foreign commerce.
24    If a tax is imposed under this subsection (b), a tax shall
25also be imposed under subsections (c) and (d) of this Section.
26    No tax shall be imposed or collected under this subsection

 

 

HB2682- 382 -LRB101 09562 HLH 54660 b

1on the sale of a motor vehicle in this State to a resident of
2another state if that motor vehicle will not be titled in this
3State.
4    Nothing in this paragraph shall be construed to authorize a
5county water commission to impose a tax upon the privilege of
6engaging in any business which under the Constitution of the
7United States may not be made the subject of taxation by this
8State.
9    (c) If a tax has been imposed under subsection (b), a
10County Water Commission Service Occupation Tax shall also be
11imposed upon all persons engaged, in the territory of the
12commission, in the business of making sales of service, who, as
13an incident to making the sales of service, transfer tangible
14personal property within the territory. The tax rate shall be
151/4% of the selling price of tangible personal property so
16transferred within the territory. The tax imposed under this
17paragraph and all civil penalties that may be assessed as an
18incident thereof shall be collected and enforced by the State
19Department of Revenue. The Department shall have full power to
20administer and enforce this paragraph; to collect all taxes and
21penalties due hereunder; to dispose of taxes and penalties so
22collected in the manner hereinafter provided; and to determine
23all rights to credit memoranda arising on account of the
24erroneous payment of tax or penalty hereunder. In the
25administration of, and compliance with, this paragraph, the
26Department and persons who are subject to this paragraph shall

 

 

HB2682- 383 -LRB101 09562 HLH 54660 b

1have the same rights, remedies, privileges, immunities, powers
2and duties, and be subject to the same conditions,
3restrictions, limitations, penalties, exclusions, exemptions
4and definitions of terms, and employ the same modes of
5procedure, as are prescribed in Sections 1a-1, 2 (except that
6the reference to State in the definition of supplier
7maintaining a place of business in this State shall mean the
8territory of the commission), 2a, 3 through 3-50 (in respect to
9all provisions therein other than the State rate of tax except
10that tangible personal property taxed at the 1% rate under the
11Service Occupation Tax Act shall not be subject to tax
12hereunder), 4 (except that the reference to the State shall be
13to the territory of the commission), 5, 7, 8 (except that the
14jurisdiction to which the tax shall be a debt to the extent
15indicated in that Section 8 shall be the commission), 9 (except
16as to the disposition of taxes and penalties collected and
17except that the returned merchandise credit for this tax may
18not be taken against any State tax, and except that the
19retailer's discount is not allowed for taxes paid on aviation
20fuel sold on or after December 1, 2019), 10, 11, 12 (except the
21reference therein to Section 2b of the Retailers' Occupation
22Tax Act), 13 (except that any reference to the State shall mean
23the territory of the commission), the first paragraph of
24Section 15, 15.5, 16, 17, 18, 19, and 20 of the Service
25Occupation Tax Act as fully as if those provisions were set
26forth herein.

 

 

HB2682- 384 -LRB101 09562 HLH 54660 b

1    Persons subject to any tax imposed under the authority
2granted in this paragraph may reimburse themselves for their
3serviceman's tax liability hereunder by separately stating the
4tax as an additional charge, which charge may be stated in
5combination, in a single amount, with State tax that servicemen
6are authorized to collect under the Service Use Tax Act, and
7any tax for which servicemen may be liable under subsection (f)
8of Section 4.03 of the Regional Transportation Authority Act,
9in accordance with such bracket schedules as the Department may
10prescribe.
11    Whenever the Department determines that a refund should be
12made under this paragraph to a claimant instead of issuing a
13credit memorandum, the Department shall notify the State
14Comptroller, who shall cause the warrant to be drawn for the
15amount specified, and to the person named, in the notification
16from the Department. The refund shall be paid by the State
17Treasurer out of a county water commission tax fund established
18under subsection (g) of this Section.
19    Nothing in this paragraph shall be construed to authorize a
20county water commission to impose a tax upon the privilege of
21engaging in any business which under the Constitution of the
22United States may not be made the subject of taxation by the
23State.
24    (d) If a tax has been imposed under subsection (b), a tax
25shall also be imposed upon the privilege of using, in the
26territory of the commission, any item of tangible personal

 

 

HB2682- 385 -LRB101 09562 HLH 54660 b

1property that is purchased outside the territory at retail from
2a retailer, and that is titled or registered with an agency of
3this State's government, at a rate of 1/4% of the selling price
4of the tangible personal property within the territory, as
5"selling price" is defined in the Use Tax Act. The tax shall be
6collected from persons whose Illinois address for titling or
7registration purposes is given as being in the territory. The
8tax shall be collected by the Department of Revenue for a
9county water commission. The tax must be paid to the State, or
10an exemption determination must be obtained from the Department
11of Revenue, before the title or certificate of registration for
12the property may be issued. The tax or proof of exemption may
13be transmitted to the Department by way of the State agency
14with which, or the State officer with whom, the tangible
15personal property must be titled or registered if the
16Department and the State agency or State officer determine that
17this procedure will expedite the processing of applications for
18title or registration.
19    The Department shall have full power to administer and
20enforce this paragraph; to collect all taxes, penalties, and
21interest due hereunder; to dispose of taxes, penalties, and
22interest so collected in the manner hereinafter provided; and
23to determine all rights to credit memoranda or refunds arising
24on account of the erroneous payment of tax, penalty, or
25interest hereunder. In the administration of and compliance
26with this paragraph, the Department and persons who are subject

 

 

HB2682- 386 -LRB101 09562 HLH 54660 b

1to this paragraph shall have the same rights, remedies,
2privileges, immunities, powers, and duties, and be subject to
3the same conditions, restrictions, limitations, penalties,
4exclusions, exemptions, and definitions of terms and employ the
5same modes of procedure, as are prescribed in Sections 2
6(except the definition of "retailer maintaining a place of
7business in this State"), 3 through 3-80 (except provisions
8pertaining to the State rate of tax, and except provisions
9concerning collection or refunding of the tax by retailers), 4,
1011, 12, 12a, 14, 15, 19 (except the portions pertaining to
11claims by retailers and except the last paragraph concerning
12refunds), 20, 21, and 22 of the Use Tax Act and Section 3-7 of
13the Uniform Penalty and Interest Act that are not inconsistent
14with this paragraph, as fully as if those provisions were set
15forth herein.
16    Whenever the Department determines that a refund should be
17made under this paragraph to a claimant instead of issuing a
18credit memorandum, the Department shall notify the State
19Comptroller, who shall cause the order to be drawn for the
20amount specified, and to the person named, in the notification
21from the Department. The refund shall be paid by the State
22Treasurer out of a county water commission tax fund established
23under subsection (g) of this Section.
24    (e) A certificate of registration issued by the State
25Department of Revenue to a retailer under the Retailers'
26Occupation Tax Act or under the Service Occupation Tax Act

 

 

HB2682- 387 -LRB101 09562 HLH 54660 b

1shall permit the registrant to engage in a business that is
2taxed under the tax imposed under subsection (b), (c), or (d)
3of this Section and no additional registration shall be
4required under the tax. A certificate issued under the Use Tax
5Act or the Service Use Tax Act shall be applicable with regard
6to any tax imposed under subsection (c) of this Section.
7    (f) Any ordinance imposing or discontinuing any tax under
8this Section shall be adopted and a certified copy thereof
9filed with the Department on or before June 1, whereupon the
10Department of Revenue shall proceed to administer and enforce
11this Section on behalf of the county water commission as of
12September 1 next following the adoption and filing. Beginning
13January 1, 1992, an ordinance or resolution imposing or
14discontinuing the tax hereunder shall be adopted and a
15certified copy thereof filed with the Department on or before
16the first day of July, whereupon the Department shall proceed
17to administer and enforce this Section as of the first day of
18October next following such adoption and filing. Beginning
19January 1, 1993, an ordinance or resolution imposing or
20discontinuing the tax hereunder shall be adopted and a
21certified copy thereof filed with the Department on or before
22the first day of October, whereupon the Department shall
23proceed to administer and enforce this Section as of the first
24day of January next following such adoption and filing.
25    (g) The State Department of Revenue shall, upon collecting
26any taxes as provided in this Section, pay the taxes over to

 

 

HB2682- 388 -LRB101 09562 HLH 54660 b

1the State Treasurer as trustee for the commission. The taxes
2shall be held in a trust fund outside the State Treasury.
3    As soon as possible after the first day of each month,
4beginning January 1, 2011, upon certification of the Department
5of Revenue, the Comptroller shall order transferred, and the
6Treasurer shall transfer, to the STAR Bonds Revenue Fund the
7local sales tax increment, as defined in the Innovation
8Development and Economy Act, collected under this Section
9during the second preceding calendar month for sales within a
10STAR bond district.
11    After the monthly transfer to the STAR Bonds Revenue Fund,
12on or before the 25th day of each calendar month, the State
13Department of Revenue shall prepare and certify to the
14Comptroller of the State of Illinois the amount to be paid to
15the commission, which shall be the amount (not including credit
16memoranda) collected under this Section during the second
17preceding calendar month by the Department plus an amount the
18Department determines is necessary to offset any amounts that
19were erroneously paid to a different taxing body, and not
20including any amount equal to the amount of refunds made during
21the second preceding calendar month by the Department on behalf
22of the commission, and not including any amount that the
23Department determines is necessary to offset any amounts that
24were payable to a different taxing body but were erroneously
25paid to the commission, and less any amounts that are
26transferred to the STAR Bonds Revenue Fund, less 1.5% of the

 

 

HB2682- 389 -LRB101 09562 HLH 54660 b

1remainder, which shall be transferred into the Tax Compliance
2and Administration Fund. The Department, at the time of each
3monthly disbursement to the commission, shall prepare and
4certify to the State Comptroller the amount to be transferred
5into the Tax Compliance and Administration Fund under this
6subsection. Within 10 days after receipt by the Comptroller of
7the certification of the amount to be paid to the commission
8and the Tax Compliance and Administration Fund, the Comptroller
9shall cause an order to be drawn for the payment for the amount
10in accordance with the direction in the certification.
11    (h) Beginning June 1, 2016, any tax imposed pursuant to
12this Section may no longer be imposed or collected, unless a
13continuation of the tax is approved by the voters at a
14referendum as set forth in this Section.
15(Source: P.A. 99-217, eff. 7-31-15; 99-642, eff. 7-28-16;
16100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 100-863, eff.
178-14-18; 100-1171, eff. 1-4-19; revised 1-11-19.)
 
18    Section 80. The Environmental Impact Fee Law is amended by
19changing Sections 315 and 320 as follows:
 
20    (415 ILCS 125/315)
21    (Section scheduled to be repealed on January 1, 2025)
22    Sec. 315. Fee on receivers of fuel for sale or use;
23collection and reporting. A person that is required to pay the
24fee imposed by this Law shall pay the fee to the Department by

 

 

HB2682- 390 -LRB101 09562 HLH 54660 b

1return showing all fuel purchased, acquired, or received and
2sold, distributed or used during the preceding calendar month,
3including losses of fuel as the result of evaporation or
4shrinkage due to temperature variations, and such other
5reasonable information as the Department may require. Losses of
6fuel as the result of evaporation or shrinkage due to
7temperature variations may not exceed 1% of the total gallons
8in storage at the beginning of the month, plus the receipts of
9gallonage during the month, minus the gallonage remaining in
10storage at the end of the month. Any loss reported that is in
11excess of this amount shall be subject to the fee imposed by
12Section 310 of this Law. On and after July 1, 2001, for each
136-month period January through June, net losses of fuel (for
14each category of fuel that is required to be reported on a
15return) as the result of evaporation or shrinkage due to
16temperature variations may not exceed 1% of the total gallons
17in storage at the beginning of each January, plus the receipts
18of gallonage each January through June, minus the gallonage
19remaining in storage at the end of each June. On and after July
201, 2001, for each 6-month period July through December, net
21losses of fuel (for each category of fuel that is required to
22be reported on a return) as the result of evaporation or
23shrinkage due to temperature variations may not exceed 1% of
24the total gallons in storage at the beginning of each July,
25plus the receipts of gallonage each July through December,
26minus the gallonage remaining in storage at the end of each

 

 

HB2682- 391 -LRB101 09562 HLH 54660 b

1December. Any net loss reported that is in excess of this
2amount shall be subject to the fee imposed by Section 310 of
3this Law. For purposes of this Section, "net loss" means the
4number of gallons gained through temperature variations minus
5the number of gallons lost through temperature variations or
6evaporation for each of the respective 6-month periods.
7    The return shall be prescribed by the Department and shall
8be filed between the 1st and 20th days of each calendar month.
9The Department may, in its discretion, combine the return filed
10under this Law with the return filed under Section 2b of the
11Motor Fuel Tax Law. If the return is timely filed, the receiver
12may take a discount of 2% through June 30, 2003 and 1.75%
13thereafter to reimburse himself for the expenses incurred in
14keeping records, preparing and filing returns, collecting and
15remitting the fee, and supplying data to the Department on
16request. However, the discount applies only to the amount of
17the fee payment that accompanies a return that is timely filed
18in accordance with this Section. The discount is not permitted
19on fees paid on aviation fuel sold or used on and after
20December 1, 2019. This exception for aviation fuel only applies
21for so long as the revenue use requirements of 49 U.S.C. §47017
22(b) and 49 U.S.C. §47133 are binding on the State.
23    Beginning on January 1, 2018, each retailer required or
24authorized to collect the fee imposed by this Act on aviation
25fuel at retail in this State during the preceding calendar
26month shall, instead of reporting and paying tax on aviation

 

 

HB2682- 392 -LRB101 09562 HLH 54660 b

1fuel as otherwise required by this Section, file an aviation
2fuel tax return with the Department, on or before the twentieth
3day of each calendar month. The requirements related to the
4return shall be as otherwise provided in this Section.
5Notwithstanding any other provisions of this Act to the
6contrary, retailers collecting fees on aviation fuel shall file
7all aviation fuel tax returns and shall make all aviation fuel
8fee payments by electronic means in the manner and form
9required by the Department. For purposes of this paragraph,
10"aviation fuel" means a product that is intended for use or
11offered for sale as fuel for an aircraft.
12    If any payment provided for in this Section exceeds the
13receiver's liabilities under this Act, as shown on an original
14return, the Department may authorize the receiver to credit
15such excess payment against liability subsequently to be
16remitted to the Department under this Act, in accordance with
17reasonable rules adopted by the Department. If the Department
18subsequently determines that all or any part of the credit
19taken was not actually due to the receiver, the receiver's
20discount shall be reduced by an amount equal to the difference
21between the discount as applied to the credit taken and that
22actually due, and that receiver shall be liable for penalties
23and interest on such difference.
24(Source: P.A. 100-1171, eff. 1-4-19.)
 
25    (415 ILCS 125/320)

 

 

HB2682- 393 -LRB101 09562 HLH 54660 b

1    (Section scheduled to be repealed on January 1, 2025)
2    Sec. 320. Deposit of fee receipts. Except as otherwise
3provided in this paragraph, all All money received by the
4Department under this Law shall be deposited in the Underground
5Storage Tank Fund created by Section 57.11 of the Environmental
6Protection Act. All money received for aviation fuel by the
7Department under this Law on or after December 1, 2019, shall
8be immediately paid over by the Department to the State
9Aviation Program Fund. The Department shall only pay such
10moneys into the State Aviation Program Fund under this Act for
11so long as the revenue use requirements of 49 U.S.C. 47107(b)
12and 49 U.S.C. 47133 are binding on the State. For purposes of
13this section, "aviation fuel" means a product that is intended
14for use or offered for sale as fuel for an aircraft.
15(Source: P.A. 89-428, eff. 1-1-96; 89-457, eff. 5-22-96; 90-14,
16eff. 7-1-97.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.

 

 

HB2682- 394 -LRB101 09562 HLH 54660 b

1 INDEX
2 Statutes amended in order of appearance
3    30 ILCS 105/5.891 new
4    30 ILCS 105/5.892 new
5    30 ILCS 105/5.893 new
6    30 ILCS 105/6z-20.1 new
7    30 ILCS 105/6z-20.2 new
8    30 ILCS 105/6z-20.3 new
9    35 ILCS 105/9from Ch. 120, par. 439.9
10    35 ILCS 105/19from Ch. 120, par. 439.19
11    35 ILCS 110/9from Ch. 120, par. 439.39
12    35 ILCS 110/17from Ch. 120, par. 439.47
13    35 ILCS 115/9from Ch. 120, par. 439.109
14    35 ILCS 115/17from Ch. 120, par. 439.117
15    35 ILCS 120/3from Ch. 120, par. 442
16    35 ILCS 120/6from Ch. 120, par. 445
17    35 ILCS 120/11from Ch. 120, par. 450
18    35 ILCS 505/2from Ch. 120, par. 418
19    35 ILCS 505/2bfrom Ch. 120, par. 418b
20    35 ILCS 505/8afrom Ch. 120, par. 424a
21    50 ILCS 470/10
22    50 ILCS 470/31
23    55 ILCS 5/5-1006from Ch. 34, par. 5-1006
24    55 ILCS 5/5-1006.5
25    55 ILCS 5/5-1006.7

 

 

HB2682- 395 -LRB101 09562 HLH 54660 b

1    55 ILCS 5/5-1007from Ch. 34, par. 5-1007
2    55 ILCS 5/5-1008.5
3    55 ILCS 5/5-1009from Ch. 34, par. 5-1009
4    55 ILCS 5/5-1035.1from Ch. 34, par. 5-1035.1
5    55 ILCS 5/5-1184 new
6    65 ILCS 5/8-11-1from Ch. 24, par. 8-11-1
7    65 ILCS 5/8-11-1.3from Ch. 24, par. 8-11-1.3
8    65 ILCS 5/8-11-1.4from Ch. 24, par. 8-11-1.4
9    65 ILCS 5/8-11-1.6
10    65 ILCS 5/8-11-1.7
11    65 ILCS 5/8-11-5from Ch. 24, par. 8-11-5
12    65 ILCS 5/8-11-6afrom Ch. 24, par. 8-11-6a
13    65 ILCS 5/8-11-22 new
14    65 ILCS 5/11-74.3-6
15    65 ILCS 5/11-101-3 new
16    70 ILCS 200/245-12
17    70 ILCS 750/25
18    70 ILCS 1605/30
19    70 ILCS 3610/5.01from Ch. 111 2/3, par. 355.01
20    70 ILCS 3615/4.03from Ch. 111 2/3, par. 704.03
21    70 ILCS 3720/4from Ch. 111 2/3, par. 254
22    415 ILCS 125/315
23    415 ILCS 125/320