101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3469

 

Introduced 2/14/2020, by Sen. Jason A. Barickman

 

SYNOPSIS AS INTRODUCED:
 
70 ILCS 200/245-12
70 ILCS 750/25
70 ILCS 1605/30
70 ILCS 3610/5.01  from Ch. 111 2/3, par. 355.01
70 ILCS 3615/4.03  from Ch. 111 2/3, par. 704.03
70 ILCS 3720/4  from Ch. 111 2/3, par. 254
410 ILCS 705/1-10
410 ILCS 705/20-50
410 ILCS 705/60-10
410 ILCS 705/65-10

    Amends 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 Cannabis Regulation and Tax Act. Provides that no special district may impose a tax on the cultivation, sale, or use of cannabis. Effective immediately.


LRB101 19661 HLH 69151 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3469LRB101 19661 HLH 69151 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Civic Center Code is amended by changing
5Section 245-12 as follows:
 
6    (70 ILCS 200/245-12)
7    Sec. 245-12. Use and occupation taxes.
8    (a) The Authority may adopt a resolution that authorizes a
9referendum on the question of whether the Authority shall be
10authorized to impose a retailers' occupation tax, a service
11occupation tax, and a use tax in one-quarter percent increments
12at a rate not to exceed 1%. The Authority shall certify the
13question to the proper election authorities who shall submit
14the question to the voters of the metropolitan area at the next
15regularly scheduled election in accordance with the general
16election law. The question shall be in substantially the
17following form:
18    "Shall the Salem Civic Center Authority be authorized to
19    impose a retailers' occupation tax, a service occupation
20    tax, and a use tax at the rate of (rate) for the sole
21    purpose of obtaining funds for the support, construction,
22    maintenance, or financing of a facility of the Authority?"
23    Votes shall be recorded as "yes" or "no".

 

 

SB3469- 2 -LRB101 19661 HLH 69151 b

1    If a majority of all votes cast on the proposition are in
2favor of the proposition, the Authority is authorized to impose
3the tax.
4    (b) The Authority shall impose the retailers' occupation
5tax upon all persons engaged in the business of selling
6tangible personal property at retail in the metropolitan area,
7at the rate approved by referendum, on the gross receipts from
8the sales made in the course of such business within the
9metropolitan area. Beginning December 1, 2019 and through
10December 31, 2020, this tax is not imposed on sales of aviation
11fuel unless the tax revenue is expended for airport-related
12purposes. If the Authority does not have an airport-related
13purpose to which it dedicates aviation fuel tax revenue, then
14aviation fuel is excluded from the tax. The Authority must
15comply with the certification requirements for airport-related
16purposes under Section 2-22 of the Retailers' Occupation Tax
17Act. For purposes of this Section, "airport-related purposes"
18has the meaning ascribed in Section 6z-20.2 of the State
19Finance Act. Beginning January 1, 2021, this tax is not imposed
20on sales of aviation fuel 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 Authority.
23    The tax imposed under this Section and all civil penalties
24that may be assessed as an incident thereof shall be collected
25and enforced by the Department of Revenue. The Department has
26full power to administer and enforce this Section; to collect

 

 

SB3469- 3 -LRB101 19661 HLH 69151 b

1all taxes and penalties so collected in the manner provided in
2this Section; and to determine all rights to credit memoranda
3arising on account of the erroneous payment of tax or penalty
4hereunder. In the administration of, and compliance with, this
5Section, the Department and persons who are subject to this
6Section shall (i) have the same rights, remedies, privileges,
7immunities, powers and duties, (ii) be subject to the same
8conditions, restrictions, limitations, penalties, exclusions,
9exemptions, and definitions of terms, and (iii) employ the same
10modes of procedure as are prescribed in Sections 1, 1a, 1a-1,
111c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in
12respect to all provisions therein other than the State rate of
13tax), 2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except as to the
14disposition of taxes and penalties collected and provisions
15related to quarter monthly payments, and except that the
16retailer's discount is not allowed for taxes paid on aviation
17fuel that are subject to the revenue use requirements of 49
18U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e,
195f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12,
20and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
21the Uniform Penalty and Interest Act, as fully as if those
22provisions were set forth in this subsection.
23    Persons subject to any tax imposed under this subsection
24may reimburse themselves for their seller's tax liability by
25separately stating the tax as an additional charge, which
26charge may be stated in combination, in a single amount, with

 

 

SB3469- 4 -LRB101 19661 HLH 69151 b

1State taxes that sellers are required to collect, in accordance
2with such bracket schedules 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 warrant 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 tax fund referenced under paragraph (g) of
10this Section or the Local Government Aviation Trust Fund, as
11appropriate.
12    If a tax is imposed under this subsection (b), a tax shall
13also be imposed at the same rate under subsections (c) and (d)
14of this Section.
15    For the purpose of determining whether a tax authorized
16under this Section 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    Nothing in this Section shall be construed to authorize the
25Authority to impose a tax upon the privilege of engaging in any
26business which under the Constitution of the United States may

 

 

SB3469- 5 -LRB101 19661 HLH 69151 b

1not be made the subject of taxation by this State.
2    (c) If a tax has been imposed under subsection (b), a
3service occupation tax shall also be imposed at the same rate
4upon all persons engaged, in the metropolitan area, in the
5business of making sales of service, who, as an incident to
6making those sales of service, transfer tangible personal
7property within the metropolitan area as an incident to a sale
8of service. The tax imposed under this subsection and all civil
9penalties that may be assessed as an incident thereof shall be
10collected and enforced by the Department of Revenue.
11    Beginning December 1, 2019 and through December 31, 2020,
12this tax is not imposed on sales of aviation fuel unless the
13tax revenue is expended for airport-related purposes. If the
14Authority does not have an airport-related purpose to which it
15dedicates aviation fuel tax revenue, then aviation fuel is
16excluded from the tax. The Authority must comply with the
17certification requirements for airport-related purposes under
18Section 2-22 of the Retailers' Occupation Tax Act. Beginning
19January 1, 2021, this tax is not imposed on sales of aviation
20fuel for so long as the revenue use requirements of 49 U.S.C.
2147107(b) and 49 U.S.C. 47133 are binding on the Authority.
22    The Department has full power to administer and enforce
23this paragraph; to collect all taxes and penalties due
24hereunder; to dispose of taxes and penalties so collected in
25the manner hereinafter provided; and to determine all rights to
26credit memoranda arising on account of the erroneous payment of

 

 

SB3469- 6 -LRB101 19661 HLH 69151 b

1tax or penalty hereunder. In the administration of, and
2compliance with this paragraph, the Department and persons who
3are subject to this paragraph shall (i) have the same rights,
4remedies, privileges, immunities, powers, and duties, (ii) be
5subject to the same conditions, restrictions, limitations,
6penalties, exclusions, exemptions, and definitions of terms,
7and (iii) employ the same modes of procedure as are prescribed
8in Sections 2 (except that the reference to State in the
9definition of supplier maintaining a place of business in this
10State shall mean the metropolitan area), 2a, 2b, 3 through 3-55
11(in respect to all provisions therein other than the State rate
12of tax), 4 (except that the reference to the State shall be to
13the Authority), 5, 7, 8 (except that the jurisdiction to which
14the tax shall be a debt to the extent indicated in that Section
158 shall be the Authority), 9 (except as to the disposition of
16taxes and penalties collected, and except that the returned
17merchandise credit for this tax may not be taken against any
18State tax, and except that the retailer's discount is not
19allowed for taxes paid on aviation fuel that are subject to the
20revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2147133), 11, 12 (except the reference therein to Section 2b of
22the Retailers' Occupation Tax Act), 13 (except that any
23reference to the State shall mean the Authority), 15, 16, 17,
2418, 19 and 20 of the Service Occupation Tax Act and Section 3-7
25of the Uniform Penalty and Interest Act, as fully as if those
26provisions were set forth herein.

 

 

SB3469- 7 -LRB101 19661 HLH 69151 b

1    Persons subject to any tax imposed under the authority
2granted in this subsection may reimburse themselves for their
3serviceman's tax liability by separately stating the tax as an
4additional charge, which charge may be stated in combination,
5in a single amount, with State tax that servicemen are
6authorized to collect under the Service Use Tax Act, in
7accordance with such bracket schedules as the Department may
8prescribe.
9    Whenever the Department determines that a refund should be
10made under this subsection 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 tax fund referenced under paragraph (g) of
16this Section or the Local Government Aviation Trust Fund, as
17appropriate.
18    Nothing in this paragraph shall be construed to authorize
19the Authority to impose a tax upon the privilege of engaging in
20any business which under the Constitution of the United States
21may not be made the subject of taxation by the State.
22    (d) If a tax has been imposed under subsection (b), a use
23tax shall also be imposed at the same rate upon the privilege
24of using, in the metropolitan area, any item of tangible
25personal property that is purchased outside the metropolitan
26area at retail from a retailer, and that is titled or

 

 

SB3469- 8 -LRB101 19661 HLH 69151 b

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

 

 

SB3469- 9 -LRB101 19661 HLH 69151 b

1exemptions, and definitions of terms, and (iii) employ the same
2modes of procedure as are prescribed in Sections 2 (except the
3definition of "retailer maintaining a place of business in this
4State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, 4, 6,
57, 8 (except that the jurisdiction to which the tax shall be a
6debt to the extent indicated in that Section 8 shall be the
7Authority), 9 (except provisions relating to quarter monthly
8payments), 10, 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22
9of the Use Tax Act and Section 3-7 of the Uniform Penalty and
10Interest Act, that are not inconsistent with this paragraph, as
11fully as if those provisions were set forth herein.
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 order 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    (e) A certificate of registration issued by the State
21Department of Revenue to a retailer under the Retailers'
22Occupation Tax Act or under the Service Occupation Tax Act
23shall permit the registrant to engage in a business that is
24taxed under the tax imposed under paragraphs (b), (c), or (d)
25of this Section and no additional registration shall be
26required. A certificate issued under the Use Tax Act or the

 

 

SB3469- 10 -LRB101 19661 HLH 69151 b

1Service Use Tax Act shall be applicable with regard to any tax
2imposed under paragraph (c) of this Section.
3    (f) The results of any election authorizing a proposition
4to impose a tax under this Section or effecting a change in the
5rate of tax shall be certified by the proper election
6authorities and filed with the Illinois Department on or before
7the first day of April. In addition, an ordinance imposing,
8discontinuing, or effecting a change in the rate of tax under
9this Section shall be adopted and a certified copy thereof
10filed with the Department on or before the first day of April.
11After proper receipt of such certifications, the Department
12shall proceed to administer and enforce this Section as of the
13first day of July next following such adoption and filing.
14    (g) Except as otherwise provided, the Department of Revenue
15shall, upon collecting any taxes and penalties as provided in
16this Section, pay the taxes and penalties over to the State
17Treasurer as trustee for the Authority. The taxes and penalties
18shall be held in a trust fund outside the State Treasury. Taxes
19and penalties collected on aviation fuel sold on or after
20December 1, 2019 and through December 31, 2020, shall be
21immediately paid over by the Department to the State Treasurer,
22ex officio, as trustee, for deposit into the Local Government
23Aviation Trust Fund. The Department shall only pay moneys into
24the Local Government Aviation Trust Fund under this Section 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 District. On or before

 

 

SB3469- 11 -LRB101 19661 HLH 69151 b

1the 25th day of each calendar month, the Department of Revenue
2shall prepare and certify to the Comptroller of the State of
3Illinois the amount to be paid to the Authority, which shall be
4the balance in the fund, less any amount determined by the
5Department to be necessary for the payment of refunds and not
6including taxes and penalties collected on aviation fuel sold
7on or after December 1, 2019. Within 10 days after receipt by
8the Comptroller of the certification of the amount to be paid
9to the Authority, the Comptroller shall cause an order to be
10drawn for payment for the amount in accordance with the
11directions contained in the certification. Amounts received
12from the tax imposed under this Section shall be used only for
13the support, construction, maintenance, or financing of a
14facility of the Authority.
15    (h) When certifying the amount of a monthly disbursement to
16the Authority under this Section, the Department shall increase
17or decrease the amounts by an amount necessary to offset any
18miscalculation of previous disbursements. The offset amount
19shall be the amount erroneously disbursed within the previous 6
20months from the time a miscalculation is discovered.
21    (i) Notwithstanding any other provision of law, no tax may
22be imposed under this Section on the sale or use of cannabis,
23as defined in Section 1-10 of the Cannabis Regulation and Tax
24Act.
25    (i) This Section may be cited as the Salem Civic Center Use
26and Occupation Tax Law.

 

 

SB3469- 12 -LRB101 19661 HLH 69151 b

1(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 
2    Section 10. The Flood Prevention District Act is amended by
3changing Section 25 as follows:
 
4    (70 ILCS 750/25)
5    Sec. 25. Flood prevention retailers' and service
6occupation taxes.
7    (a) If the Board of Commissioners of a flood prevention
8district determines that an emergency situation exists
9regarding levee repair or flood prevention, and upon an
10ordinance confirming the determination adopted by the
11affirmative vote of a majority of the members of the county
12board of the county in which the district is situated, the
13county may impose a flood prevention retailers' occupation tax
14upon all persons engaged in the business of selling tangible
15personal property at retail within the territory of the
16district to provide revenue to pay the costs of providing
17emergency levee repair and flood prevention and to secure the
18payment of bonds, notes, and other evidences of indebtedness
19issued under this Act for a period not to exceed 25 years or as
20required to repay the bonds, notes, and other evidences of
21indebtedness issued under this Act. The tax rate shall be 0.25%
22of the gross receipts from all taxable sales made in the course
23of that business. Beginning December 1, 2019 and through
24December 31, 2020, this tax is not imposed on sales of aviation

 

 

SB3469- 13 -LRB101 19661 HLH 69151 b

1fuel unless the tax revenue is expended for airport-related
2purposes. If the District does not have an airport-related
3purpose to which it dedicates aviation fuel tax revenue, then
4aviation fuel is excluded from the tax. The County must comply
5with the certification requirements for airport-related
6purposes under Section 2-22 of the Retailers' Occupation Tax
7Act. The tax imposed under this Section and all civil penalties
8that may be assessed as an incident thereof shall be collected
9and enforced by the State Department of Revenue. The Department
10shall have full power to administer and enforce this Section;
11to collect all taxes and penalties so collected in the manner
12hereinafter provided; and to determine all rights to credit
13memoranda arising on account of the erroneous payment of tax or
14penalty hereunder.
15    For purposes of this Act, "airport-related purposes" has
16the meaning ascribed in Section 6z-20.2 of the State Finance
17Act. Beginning January 1, 2021, this tax is not imposed on
18sales of aviation fuel for so long as the revenue use
19requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
20binding on the District.
21    In the administration of and compliance with this
22subsection, the Department and persons who are subject to this
23subsection (i) have the same rights, remedies, privileges,
24immunities, powers, and duties, (ii) are subject to the same
25conditions, restrictions, limitations, penalties, and
26definitions of terms, and (iii) shall employ the same modes of

 

 

SB3469- 14 -LRB101 19661 HLH 69151 b

1procedure as are set forth in Sections 1 through 1o, 2 through
22-70 (in respect to all provisions contained in those Sections
3other than the State rate of tax), 2a through 2h, 3 (except as
4to the disposition of taxes and penalties collected, and except
5that the retailer's discount is not allowed for taxes paid on
6aviation fuel that are subject to the revenue use requirements
7of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
85d, 5e, 5f, 5g, 5h, 5i, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11,
911a, 12, and 13 of the Retailers' Occupation Tax Act and all
10provisions of the Uniform Penalty and Interest Act as if those
11provisions were set forth in this subsection.
12    Persons subject to any tax imposed under this Section may
13reimburse themselves for their seller's tax liability
14hereunder by separately stating the tax as an additional
15charge, which charge may be stated in combination in a single
16amount with State taxes that sellers are required to collect
17under the Use Tax Act, under any bracket schedules the
18Department may prescribe.
19    If a tax is imposed under this subsection (a), a tax shall
20also be imposed under subsection (b) of this Section.
21    (b) If a tax has been imposed under subsection (a), a flood
22prevention service occupation tax shall also be imposed upon
23all persons engaged within the territory of the district in the
24business of making sales of service, who, as an incident to
25making the sales of service, transfer tangible personal
26property, either in the form of tangible personal property or

 

 

SB3469- 15 -LRB101 19661 HLH 69151 b

1in the form of real estate as an incident to a sale of service
2to provide revenue to pay the costs of providing emergency
3levee repair and flood prevention and to secure the payment of
4bonds, notes, and other evidences of indebtedness issued under
5this Act for a period not to exceed 25 years or as required to
6repay the bonds, notes, and other evidences of indebtedness.
7The tax rate shall be 0.25% of the selling price of all
8tangible personal property transferred. Beginning December 1,
92019 and through December 31, 2020, this tax is not imposed on
10sales of aviation fuel unless the tax revenue is expended for
11airport-related purposes. If the District does not have an
12airport-related purpose to which it dedicates aviation fuel tax
13revenue, then aviation fuel is excluded from the tax. The
14County must comply with the certification requirements for
15airport-related purposes under Section 2-22 of the Retailers'
16Occupation Tax Act. For purposes of this Act, "airport-related
17purposes" has the meaning ascribed in Section 6z-20.2 of the
18State Finance Act. Beginning January 1, 2021, this tax is not
19imposed on sales of aviation fuel for so long as the revenue
20use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
21binding 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 State Department of Revenue. The
25Department shall have full power to administer and enforce this
26subsection; to collect all taxes and penalties due hereunder;

 

 

SB3469- 16 -LRB101 19661 HLH 69151 b

1to dispose of taxes and penalties collected in the manner
2hereinafter provided; and to determine all rights to credit
3memoranda arising on account of the erroneous payment of tax or
4penalty hereunder.
5    In the administration of and compliance with this
6subsection, the Department and persons who are subject to this
7subsection shall (i) have the same rights, remedies,
8privileges, immunities, powers, and duties, (ii) be subject to
9the same conditions, restrictions, limitations, penalties, and
10definitions of terms, and (iii) employ the same modes of
11procedure as are set forth in Sections 2 (except that the
12reference to State in the definition of supplier maintaining a
13place of business in this State means the district), 2a through
142d, 3 through 3-50 (in respect to all provisions contained in
15those Sections other than the State rate of tax), 4 (except
16that the reference to the State shall be to the district), 5,
177, 8 (except that the jurisdiction to which the tax is a debt
18to the extent indicated in that Section 8 is the district), 9
19(except as to the disposition of taxes and penalties collected,
20and except that the retailer's discount is not allowed for
21taxes paid on aviation fuel that are subject to the revenue use
22requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
2311, 12 (except the reference therein to Section 2b of the
24Retailers' Occupation Tax Act), 13 (except that any reference
25to the State means the district), Section 15, 16, 17, 18, 19,
26and 20 of the Service Occupation Tax Act and all provisions of

 

 

SB3469- 17 -LRB101 19661 HLH 69151 b

1the Uniform Penalty and Interest Act, as fully as if those
2provisions were set forth herein.
3    Persons subject to any tax imposed under the authority
4granted in this subsection may reimburse themselves for their
5serviceman's tax liability hereunder by separately stating the
6tax as an additional charge, that charge may be stated in
7combination in a single amount with State tax that servicemen
8are authorized to collect under the Service Use Tax Act, under
9any bracket schedules the Department may prescribe.
10    (c) The taxes imposed in subsections (a) and (b) may not be
11imposed on personal property titled or registered with an
12agency of the State or on personal property taxed at the 1%
13rate under the Retailers' Occupation Tax Act and the Service
14Occupation Tax Act.
15    (d) Nothing in this Section shall be construed to authorize
16the district to impose a tax upon the privilege of engaging in
17any business that under the Constitution of the United States
18may not be made the subject of taxation by the State.
19    (e) The certificate of registration that is issued by the
20Department to a retailer under the Retailers' Occupation Tax
21Act or a serviceman under the Service Occupation Tax Act
22permits the retailer or serviceman to engage in a business that
23is taxable without registering separately with the Department
24under an ordinance or resolution under this Section.
25    (f) Except as otherwise provided, the Department shall
26immediately pay over to the State Treasurer, ex officio, as

 

 

SB3469- 18 -LRB101 19661 HLH 69151 b

1trustee, all taxes and penalties collected under this Section
2to be deposited into the Flood Prevention Occupation Tax Fund,
3which shall be an unappropriated trust fund held outside the
4State treasury. Taxes and penalties collected on aviation fuel
5sold on or after December 1, 2019 and through December 31,
62020, shall be immediately paid over by the Department to the
7State Treasurer, ex officio, as trustee, for deposit into the
8Local Government Aviation Trust Fund. The Department shall only
9pay moneys into the Local Government Aviation Trust Fund under
10this Act for so long as the revenue use requirements of 49
11U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
12District.
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 the counties from which
16retailers or servicemen have paid taxes or penalties to the
17Department during the second preceding calendar month. The
18amount to be paid to each county is equal to the amount (not
19including credit memoranda and not including taxes and
20penalties collected on aviation fuel sold on or after December
211, 2019 and through December 31, 2020) collected from the
22county under this Section during the second preceding calendar
23month by the Department, (i) less 2% of that amount (except the
24amount collected on aviation fuel sold on or after December 1,
252019 and through December 31, 2020), which shall be deposited
26into the Tax Compliance and Administration Fund and shall be

 

 

SB3469- 19 -LRB101 19661 HLH 69151 b

1used by the Department in administering and enforcing the
2provisions of this Section on behalf of the county, (ii) plus
3an amount that the Department determines is necessary to offset
4any amounts that were erroneously paid to a different taxing
5body; (iii) less an amount equal to the amount of refunds made
6during the second preceding calendar month by the Department on
7behalf of the county; and (iv) less any amount that the
8Department determines is necessary to offset any amounts that
9were payable to a different taxing body but were erroneously
10paid to the county. When certifying the amount of a monthly
11disbursement to a county under this Section, the Department
12shall increase or decrease the amounts by an amount necessary
13to offset any miscalculation of previous disbursements within
14the previous 6 months from the time a miscalculation is
15discovered.
16    Within 10 days after receipt by the Comptroller from the
17Department of the disbursement certification to the counties
18provided for in this Section, the Comptroller shall cause the
19orders to be drawn for the respective amounts in accordance
20with directions contained in the certification.
21    If the Department determines that a refund should be made
22under this Section to a claimant instead of issuing a credit
23memorandum, then the Department shall notify the Comptroller,
24who shall cause the order to be drawn for the amount specified
25and to the person named in the notification from the
26Department. The refund shall be paid by the Treasurer out of

 

 

SB3469- 20 -LRB101 19661 HLH 69151 b

1the Flood Prevention Occupation Tax Fund or the Local
2Government Aviation Trust Fund, as appropriate.
3    (g) If a county imposes a tax under this Section, then the
4county board shall, by ordinance, discontinue the tax upon the
5payment of all indebtedness of the flood prevention district.
6The tax shall not be discontinued until all indebtedness of the
7District has been paid.
8    (h) Any ordinance imposing the tax under this Section, or
9any ordinance that discontinues the tax, must be certified by
10the county clerk and filed with the Illinois Department of
11Revenue either (i) on or before the first day of April,
12whereupon the Department shall proceed to administer and
13enforce the tax or change in the rate as of the first day of
14July next following the filing; or (ii) on or before the first
15day of October, whereupon the Department shall proceed to
16administer and enforce the tax or change in the rate as of the
17first day of January next following the filing.
18    (j) County Flood Prevention Occupation Tax Fund. All
19proceeds received by a county from a tax distribution under
20this Section must be maintained in a special fund known as the
21[name of county] flood prevention occupation tax fund. The
22county shall, at the direction of the flood prevention
23district, use moneys in the fund to pay the costs of providing
24emergency levee repair and flood prevention and to pay bonds,
25notes, and other evidences of indebtedness issued under this
26Act.

 

 

SB3469- 21 -LRB101 19661 HLH 69151 b

1    (k) Notwithstanding any other provision of law, no tax may
2be imposed under this Section on the sale or use of cannabis,
3as defined in Section 1-10 of the Cannabis Regulation and Tax
4Act.
5    (k) This Section may be cited as the Flood Prevention
6Occupation Tax Law.
7(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19;
8101-604, eff. 12-13-19.)
 
9    Section 20. The Metro-East Park and Recreation District Act
10is amended by changing Section 30 as follows:
 
11    (70 ILCS 1605/30)
12    Sec. 30. Taxes.
13    (a) The board shall impose a tax upon all persons engaged
14in the business of selling tangible personal property, other
15than personal property titled or registered with an agency of
16this State's government, at retail in the District on the gross
17receipts from the sales made in the course of business. This
18tax shall be imposed only at the rate of one-tenth of one per
19cent.
20    This additional tax may not be imposed on tangible personal
21property taxed at the 1% rate under the Retailers' Occupation
22Tax Act. Beginning December 1, 2019 and through December 31,
232020, this tax is not imposed on sales of aviation fuel unless
24the tax revenue is expended for airport-related purposes. If

 

 

SB3469- 22 -LRB101 19661 HLH 69151 b

1the District does not have an airport-related purpose to which
2it dedicates aviation fuel tax revenue, then aviation fuel
3shall be excluded from tax. The board must comply with the
4certification requirements for airport-related purposes under
5Section 2-22 of the Retailers' Occupation Tax Act. For purposes
6of this Act, "airport-related purposes" has the meaning
7ascribed in Section 6z-20.2 of the State Finance Act. Beginning
8January 1, 2021, this tax is not imposed on sales of aviation
9fuel for so long as the revenue use requirements of 49 U.S.C.
1047107(b) and 49 U.S.C. 47133 are binding on the District. The
11tax imposed by the Board under this Section and all civil
12penalties that may be assessed as an incident of the tax shall
13be collected 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 without
17registering separately with the Department under an ordinance
18or resolution under this Section. The Department has full power
19to administer and enforce this Section, to collect all taxes
20and penalties due under this Section, to dispose of taxes and
21penalties so collected in the manner provided in this Section,
22and to determine all rights to credit memoranda arising on
23account of the erroneous payment of a tax or penalty under this
24Section. 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,

 

 

SB3469- 23 -LRB101 19661 HLH 69151 b

1immunities, powers, and duties, (ii) be subject to the same
2conditions, restrictions, limitations, penalties, and
3definitions of terms, and (iii) employ the same modes of
4procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
51f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to all
6provisions contained in those Sections other than the State
7rate of tax), 2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except
8provisions relating to transaction returns and quarter monthly
9payments, and except that the retailer's discount is not
10allowed for taxes paid on aviation fuel that are subject to the
11revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1247133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6,
136a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
14Retailers' Occupation Tax Act and the Uniform Penalty and
15Interest Act as if those provisions were set forth in this
16Section.
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

 

 

SB3469- 24 -LRB101 19661 HLH 69151 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 or the Local Government Aviation Trust Fund, as
6appropriate.
7    (b) If a tax has been imposed under subsection (a), a
8service occupation tax shall also be imposed at the same rate
9upon all persons engaged, in the District, in the business of
10making sales of service, who, as an incident to making those
11sales of service, transfer tangible personal property within
12the District as an incident to a sale of service. This tax may
13not be imposed on tangible personal property taxed at the 1%
14rate under the Service Occupation Tax Act. Beginning December
151, 2019 and through December 31, 2020, this tax may not be
16imposed on sales of aviation fuel unless the tax revenue is
17expended for airport-related purposes. If the District does not
18have an airport-related purpose to which it dedicates aviation
19fuel tax revenue, then aviation fuel shall be excluded from
20tax. The board must comply with the certification requirements
21for airport-related purposes under Section 2-22 of the
22Retailers' Occupation Tax Act. For purposes of this Act,
23"airport-related purposes" has the meaning ascribed in Section
246z-20.2 of the State Finance Act. Beginning January 1, 2021,
25this tax is not imposed on sales of aviation fuel for so long
26as the revenue use requirements of 49 U.S.C. 47107(b) and 49

 

 

SB3469- 25 -LRB101 19661 HLH 69151 b

1U.S.C. 47133 are binding on the District. The tax imposed under
2this subsection and all civil penalties that may be assessed as
3an incident thereof shall be collected and enforced by the
4Department of Revenue. The Department has full power to
5administer and enforce this subsection; to collect all taxes
6and penalties due hereunder; to dispose of taxes and penalties
7so collected in the manner hereinafter provided; and to
8determine all rights to credit memoranda arising on account of
9the erroneous payment of tax or penalty hereunder. In the
10administration of, and compliance with this subsection, the
11Department and persons who are subject to this paragraph shall
12(i) have the same rights, remedies, privileges, immunities,
13powers, and duties, (ii) be subject to the same conditions,
14restrictions, limitations, penalties, exclusions, exemptions,
15and definitions of terms, and (iii) employ the same modes of
16procedure as are prescribed in Sections 2 (except that the
17reference to State in the definition of supplier maintaining a
18place of business in this State shall mean the District), 2a,
192b, 2c, 3 through 3-50 (in respect to all provisions therein
20other than the State rate of tax), 4 (except that the reference
21to the State shall be to the District), 5, 7, 8 (except that
22the jurisdiction to which the tax shall be a debt to the extent
23indicated in that Section 8 shall be the District), 9 (except
24as to the disposition of taxes and penalties collected, and
25except that the retailer's discount is not allowed for taxes
26paid on aviation fuel that are subject to the revenue use

 

 

SB3469- 26 -LRB101 19661 HLH 69151 b

1requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
211, 12 (except the reference therein to Section 2b of the
3Retailers' Occupation Tax Act), 13 (except that any reference
4to the State shall mean the District), Sections 15, 16, 17, 18,
519 and 20 of the Service Occupation Tax Act and the Uniform
6Penalty and Interest Act, as fully as if those provisions were
7set forth herein.
8    Persons subject to any tax imposed under the authority
9granted in this subsection may reimburse themselves for their
10serviceman's tax liability by separately stating the tax as an
11additional charge, which charge may be stated in combination,
12in a single amount, with State tax that servicemen are
13authorized to collect under the Service Use Tax Act, in
14accordance with such bracket schedules as the Department may
15prescribe.
16    Whenever the Department determines that a refund should be
17made under this subsection 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 State Metro-East Park and Recreation
23District Fund or the Local Government Aviation Trust Fund, as
24appropriate.
25    Nothing in this subsection shall be construed to authorize
26the board to impose a tax upon the privilege of engaging in any

 

 

SB3469- 27 -LRB101 19661 HLH 69151 b

1business which under the Constitution of the United States may
2not be made the subject of taxation by the State.
3    (c) Except as otherwise provided in this paragraph, the
4Department shall immediately pay over to the State Treasurer,
5ex officio, as trustee, all taxes and penalties collected under
6this Section to be deposited into the State Metro-East Park and
7Recreation District Fund, which shall be an unappropriated
8trust fund held outside of the State treasury. Taxes and
9penalties collected on aviation fuel sold on or after December
101, 2019 and through December 31, 2020, shall be immediately
11paid over by the Department to the State Treasurer, ex officio,
12as trustee, for deposit into the Local Government Aviation
13Trust Fund. The Department shall only pay moneys into the Local
14Government Aviation Trust Fund under this Act for so long as
15the revenue use requirements of 49 U.S.C. 47107(b) and 49
16U.S.C. 47133 are binding on the District.
17    As soon as possible after the first day of each month,
18beginning January 1, 2011, upon certification of the Department
19of Revenue, the Comptroller shall order transferred, and the
20Treasurer shall transfer, to the STAR Bonds Revenue Fund the
21local sales tax increment, as defined in the Innovation
22Development and Economy Act, collected under this Section
23during the second preceding calendar month for sales within a
24STAR bond district. The Department shall make this
25certification only if the Metro East Park and Recreation
26District imposes a tax on real property as provided in the

 

 

SB3469- 28 -LRB101 19661 HLH 69151 b

1definition of "local sales taxes" under the Innovation
2Development and Economy Act.
3    After the monthly transfer to the STAR Bonds Revenue Fund,
4on or before the 25th day of each calendar month, the
5Department shall prepare and certify to the Comptroller the
6disbursement of stated sums of money pursuant to Section 35 of
7this Act to the District from which retailers have paid taxes
8or penalties to the Department during the second preceding
9calendar month. The amount to be paid to the District shall be
10the amount (not including credit memoranda and not including
11taxes and penalties collected on aviation fuel sold on or after
12December 1, 2019 and through December 31, 2020) collected under
13this Section during the second preceding calendar month by the
14Department plus an amount the Department determines is
15necessary to offset any amounts that were erroneously paid to a
16different taxing body, and not including (i) an amount equal to
17the amount of refunds made during the second preceding calendar
18month by the Department on behalf of the District, (ii) any
19amount that the Department determines is necessary to offset
20any amounts that were payable to a different taxing body but
21were erroneously paid to the District, (iii) any amounts that
22are transferred to the STAR Bonds Revenue Fund, and (iv) 1.5%
23of the remainder, which the Department shall transfer into the
24Tax Compliance and Administration Fund. The Department, at the
25time of each monthly disbursement to the District, shall
26prepare and certify to the State Comptroller the amount to be

 

 

SB3469- 29 -LRB101 19661 HLH 69151 b

1transferred into the Tax Compliance and Administration Fund
2under this subsection. Within 10 days after receipt by the
3Comptroller of the disbursement certification to the District
4and the Tax Compliance and Administration Fund provided for in
5this Section to be given to the Comptroller by the Department,
6the Comptroller shall cause the orders to be drawn for the
7respective amounts in accordance with directions contained in
8the certification.
9    (d) For the purpose of determining whether a tax authorized
10under this Section is applicable, a retail sale by a producer
11of coal or another mineral mined in Illinois is a sale at
12retail at the place where the coal or other mineral mined in
13Illinois is extracted from the earth. This paragraph does not
14apply to coal or another mineral when it is delivered or
15shipped by the seller to the purchaser at a point outside
16Illinois so that the sale is exempt under the United States
17Constitution as a sale in interstate or foreign commerce.
18    (e) Nothing in this Section shall be construed to authorize
19the board to impose a tax upon the privilege of engaging in any
20business that under the Constitution of the United States may
21not be made the subject of taxation by this State.
22    (f) An ordinance imposing a tax under this Section or an
23ordinance extending the imposition of a tax to an additional
24county or counties shall be certified by the board and filed
25with the Department of Revenue either (i) on or before the
26first day of April, whereupon the Department shall proceed to

 

 

SB3469- 30 -LRB101 19661 HLH 69151 b

1administer and enforce the tax as of the first day of July next
2following the filing; or (ii) on or before the first day of
3October, whereupon the Department shall proceed to administer
4and enforce the tax as of the first day of January next
5following the filing.
6    (g) When certifying the amount of a monthly disbursement to
7the District under this Section, the Department shall increase
8or decrease the amounts 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    (h) Notwithstanding any other provision of law, no tax may
13be imposed under this Section on the sale or use of cannabis,
14as defined in Section 1-10 of the Cannabis Regulation and Tax
15Act.
16(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
17100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
187-12-19; 101-604, eff. 12-13-19.)
 
19    Section 25. The Local Mass Transit District Act is amended
20by changing Section 5.01 as follows:
 
21    (70 ILCS 3610/5.01)   (from Ch. 111 2/3, par. 355.01)
22    Sec. 5.01. Metro East Mass Transit District; use and
23occupation taxes.
24    (a) The Board of Trustees of any Metro East Mass Transit

 

 

SB3469- 31 -LRB101 19661 HLH 69151 b

1District may, by ordinance adopted with the concurrence of
2two-thirds of the then trustees, impose throughout the District
3any or all of the taxes and fees provided in this Section.
4Except as otherwise provided, all taxes and fees imposed under
5this Section shall be used only for public mass transportation
6systems, and the amount used to provide mass transit service to
7unserved areas of the District shall be in the same proportion
8to the total proceeds as the number of persons residing in the
9unserved areas is to the total population of the District.
10Except as otherwise provided in this Act, taxes imposed under
11this Section and civil penalties imposed incident thereto shall
12be collected and enforced by the State Department of Revenue.
13The Department shall have the power to administer and enforce
14the taxes and to determine all rights for refunds for erroneous
15payments of the taxes.
16    (b) The Board may impose a Metro East Mass Transit District
17Retailers' Occupation Tax upon all persons engaged in the
18business of selling tangible personal property at retail in the
19district at a rate of 1/4 of 1%, or as authorized under
20subsection (d-5) of this Section, of the gross receipts from
21the sales made in the course of such business within the
22district, except that the rate of tax imposed under this
23Section on sales of aviation fuel on or after December 1, 2019
24shall be 0.25% in Madison County unless the Metro-East Mass
25Transit District in Madison County has an "airport-related
26purpose" and any additional amount authorized under subsection

 

 

SB3469- 32 -LRB101 19661 HLH 69151 b

1(d-5) is expended for airport-related purposes. If there is no
2airport-related purpose to which aviation fuel tax revenue is
3dedicated, then aviation fuel is excluded from any additional
4amount authorized under subsection (d-5). The rate in St. Clair
5County shall be 0.25% unless the Metro-East Mass Transit
6District in St. Clair County has an "airport-related purpose"
7and the additional 0.50% of the 0.75% tax on aviation fuel
8imposed in that County is expended for airport-related
9purposes. If there is no airport-related purpose to which
10aviation fuel tax revenue is dedicated, then aviation fuel is
11excluded from the additional 0.50% of the 0.75% tax.
12    The Board must comply with the certification requirements
13for airport-related purposes under Section 2-22 of the
14Retailers' Occupation Tax Act. For purposes of this Section,
15"airport-related purposes" has the meaning ascribed in Section
166z-20.2 of the State Finance Act. This exclusion 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
19District.
20    The tax imposed under this Section and all civil penalties
21that may be assessed as an incident thereof shall be collected
22and enforced by the State Department of Revenue. The Department
23shall have full power to administer and enforce this Section;
24to collect all taxes and penalties so collected in the manner
25hereinafter provided; and to determine all rights to credit
26memoranda arising on account of the erroneous payment of tax or

 

 

SB3469- 33 -LRB101 19661 HLH 69151 b

1penalty hereunder. In the administration of, and compliance
2with, this Section, the Department and persons who are subject
3to this Section shall have the same rights, remedies,
4privileges, immunities, powers and duties, and be subject to
5the same conditions, restrictions, limitations, penalties,
6exclusions, exemptions and definitions of terms and employ the
7same modes of procedure, as are prescribed in Sections 1, 1a,
81a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all
9provisions therein other than the State rate of tax), 2c, 3
10(except as to the disposition of taxes and penalties collected,
11and except that the retailer's discount is not allowed for
12taxes paid on aviation fuel that are subject to the revenue use
13requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
145a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
157, 8, 9, 10, 11, 12, 13, and 14 of the Retailers' Occupation
16Tax Act and Section 3-7 of the Uniform Penalty and Interest
17Act, as fully as if those provisions were set forth herein.
18    Persons subject to any tax imposed under the Section may
19reimburse themselves for their seller's tax liability
20hereunder by separately stating the tax as an additional
21charge, which charge may be stated in combination, in a single
22amount, with State taxes that sellers are required to collect
23under the Use Tax Act, in accordance with such bracket
24schedules as the Department may prescribe.
25    Whenever the Department determines that a refund should be
26made under this Section to a claimant instead of issuing a

 

 

SB3469- 34 -LRB101 19661 HLH 69151 b

1credit memorandum, the Department shall notify the State
2Comptroller, who shall cause the warrant to be drawn for the
3amount specified, and to the person named, in the notification
4from the Department. The refund shall be paid by the State
5Treasurer out of the Metro East Mass Transit District tax fund
6established under paragraph (h) of this Section or the Local
7Government Aviation Trust Fund, as appropriate.
8    If a tax is imposed under this subsection (b), a tax shall
9also be imposed under subsections (c) and (d) of this Section.
10    For the purpose of determining whether a tax authorized
11under this Section is applicable, a retail sale, by a producer
12of coal or other mineral mined in Illinois, is a sale at retail
13at the place where the coal or other mineral mined in Illinois
14is extracted from the earth. This paragraph does not apply to
15coal or other mineral when it is delivered or shipped by the
16seller to the purchaser at a point outside Illinois so that the
17sale is exempt under the Federal Constitution as a sale in
18interstate or foreign commerce.
19    No tax shall be imposed or collected under this subsection
20on the sale of a motor vehicle in this State to a resident of
21another state if that motor vehicle will not be titled in this
22State.
23    Nothing in this Section shall be construed to authorize the
24Metro East Mass Transit District to impose a tax upon the
25privilege of engaging in any business which under the
26Constitution of the United States may not be made the subject

 

 

SB3469- 35 -LRB101 19661 HLH 69151 b

1of taxation by this State.
2    (c) If a tax has been imposed under subsection (b), a Metro
3East Mass Transit District Service Occupation Tax shall also be
4imposed upon all persons engaged, in the district, in the
5business of making sales of service, who, as an incident to
6making those sales of service, transfer tangible personal
7property within the District, either in the form of tangible
8personal property or in the form of real estate as an incident
9to a sale of service. The tax rate shall be 1/4%, or as
10authorized under subsection (d-5) of this Section, of the
11selling price of tangible personal property so transferred
12within the district, except that the rate of tax imposed in
13these Counties under this Section on sales of aviation fuel on
14or after December 1, 2019 shall be 0.25% in Madison County
15unless the Metro-East Mass Transit District in Madison County
16has an "airport-related purpose" and any additional amount
17authorized under subsection (d-5) is expended for
18airport-related purposes. If there is no airport-related
19purpose to which aviation fuel tax revenue is dedicated, then
20aviation fuel is excluded from any additional amount authorized
21under subsection (d-5). The rate in St. Clair County shall be
220.25% unless the Metro-East Mass Transit District in St. Clair
23County has an "airport-related purpose" and the additional
240.50% of the 0.75% tax on aviation fuel is expended for
25airport-related purposes. If there is no airport-related
26purpose to which aviation fuel tax revenue is dedicated, then

 

 

SB3469- 36 -LRB101 19661 HLH 69151 b

1aviation fuel is excluded from the additional 0.50% of the
20.75% tax.
3    The Board must comply with the certification requirements
4for airport-related purposes under Section 2-22 of the
5Retailers' Occupation Tax Act. For purposes of this Section,
6"airport-related purposes" has the meaning ascribed in Section
76z-20.2 of the State Finance Act. This exclusion for aviation
8fuel only applies for so long as the revenue use requirements
9of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
10District.
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 so 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
20with this paragraph, the Department and persons who are subject
21to this 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
26(except that the reference to State in the definition of

 

 

SB3469- 37 -LRB101 19661 HLH 69151 b

1supplier maintaining a place of business in this State shall
2mean the Authority), 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 Authority), 5,
57, 8 (except that the jurisdiction to which the tax shall be a
6debt to the extent indicated in that Section 8 shall be the
7District), 9 (except as to the disposition of taxes and
8penalties collected, and except that the returned merchandise
9credit for this tax may not be taken against any State tax, and
10except that the retailer's discount is not allowed for taxes
11paid on aviation fuel that are subject to the revenue use
12requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
1311, 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 District), the first paragraph of
16Section 15, 16, 17, 18, 19 and 20 of the Service Occupation Tax
17Act and Section 3-7 of the Uniform Penalty and Interest Act, as
18fully as if those provisions were set forth herein.
19    Persons subject to any tax imposed under the authority
20granted in this paragraph may reimburse themselves for their
21serviceman's tax liability hereunder by separately stating the
22tax as an additional charge, which charge may be stated in
23combination, in a single amount, with State tax that servicemen
24are authorized to collect under the Service Use Tax Act, in
25accordance with such bracket schedules as the Department may
26prescribe.

 

 

SB3469- 38 -LRB101 19661 HLH 69151 b

1    Whenever the Department determines that a refund should be
2made under this paragraph 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 Metro East Mass Transit District tax fund
8established under paragraph (h) of this Section or the Local
9Government Aviation Trust Fund, as appropriate.
10    Nothing in this paragraph shall be construed to authorize
11the District to impose a tax upon the privilege of engaging in
12any business which 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 Metro
15East Mass Transit District Use Tax shall also be imposed upon
16the privilege of using, in the district, any item of tangible
17personal property that is purchased outside the district at
18retail from a retailer, and that is titled or registered with
19an agency of this State's government, at a rate of 1/4%, or as
20authorized under subsection (d-5) of this Section, of the
21selling price of the tangible personal property within the
22District, as "selling price" is defined in the Use Tax Act. The
23tax shall be collected from persons whose Illinois address for
24titling or registration purposes is given as being in the
25District. The tax shall be collected by the Department of
26Revenue for the Metro East Mass Transit District. The tax must

 

 

SB3469- 39 -LRB101 19661 HLH 69151 b

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

 

 

SB3469- 40 -LRB101 19661 HLH 69151 b

119 (except the portions pertaining to claims by retailers and
2except the last paragraph concerning refunds), 20, 21 and 22 of
3the Use Tax Act and Section 3-7 of the Uniform Penalty and
4Interest Act, that are not inconsistent with this paragraph, as
5fully as if those provisions were set forth herein.
6    Whenever the Department determines that a refund should be
7made under this paragraph 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 Metro East Mass Transit District tax fund
13established under paragraph (h) of this Section.
14    (d-5) (A) The county board of any county participating in
15the Metro East Mass Transit District may authorize, by
16ordinance, a referendum on the question of whether the tax
17rates for the Metro East Mass Transit District Retailers'
18Occupation Tax, the Metro East Mass Transit District Service
19Occupation Tax, and the Metro East Mass Transit District Use
20Tax for the District should be increased from 0.25% to 0.75%.
21Upon adopting the ordinance, the county board shall certify the
22proposition to the proper election officials who shall submit
23the proposition to the voters of the District at the next
24election, in accordance with the general election law.
25    The proposition shall be in substantially the following
26form:

 

 

SB3469- 41 -LRB101 19661 HLH 69151 b

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

 

 

SB3469- 42 -LRB101 19661 HLH 69151 b

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

 

 

SB3469- 43 -LRB101 19661 HLH 69151 b

1next following the adoption and filing.
2    (D) If the voters have approved a referendum under this
3subsection, before November 1, 1994, to increase the tax rate
4under this subsection, the Metro East Mass Transit District
5Board of Trustees may adopt by a majority vote an ordinance at
6any time before January 1, 1995 that excludes from the rate
7increase tangible personal property that is titled or
8registered with an agency of this State's government. The
9ordinance excluding titled or registered tangible personal
10property from the rate increase must be filed with the
11Department at least 15 days before its effective date. At any
12time after adopting an ordinance excluding from the rate
13increase tangible personal property that is titled or
14registered with an agency of this State's government, the Metro
15East Mass Transit District Board of Trustees may adopt an
16ordinance applying the rate increase to that tangible personal
17property. The ordinance shall be adopted, and a certified copy
18of that ordinance shall be filed with the Department, on or
19before October 1, whereupon the Department shall proceed to
20administer and enforce the rate increase against tangible
21personal property titled or registered with an agency of this
22State's government as of the following January 1. After
23December 31, 1995, any reimposed rate increase in effect under
24this subsection shall no longer apply to tangible personal
25property titled or registered with an agency of this State's
26government. Beginning January 1, 1996, the Board of Trustees of

 

 

SB3469- 44 -LRB101 19661 HLH 69151 b

1any Metro East Mass Transit District may never reimpose a
2previously excluded tax rate increase on tangible personal
3property titled or registered with an agency of this State's
4government. After July 1, 2004, if the voters have approved a
5referendum under this subsection to increase the tax rate under
6this subsection, the Metro East Mass Transit District Board of
7Trustees may adopt by a majority vote an ordinance that
8excludes from the rate increase tangible personal property that
9is titled or registered with an agency of this State's
10government. The ordinance excluding titled or registered
11tangible personal property from the rate increase shall be
12adopted, and a certified copy of that ordinance shall be filed
13with the Department on or before October 1, whereupon the
14Department shall administer and enforce this exclusion from the
15rate increase as of the following January 1, or on or before
16April 1, whereupon the Department shall administer and enforce
17this exclusion from the rate increase as of the following July
181. The Board of Trustees of any Metro East Mass Transit
19District may never reimpose a previously excluded tax rate
20increase on tangible personal property titled or registered
21with an agency of this State's government.
22    (d-6) If the Board of Trustees of any Metro East Mass
23Transit District has imposed a rate increase under subsection
24(d-5) and filed an ordinance with the Department of Revenue
25excluding titled property from the higher rate, then that Board
26may, by ordinance adopted with the concurrence of two-thirds of

 

 

SB3469- 45 -LRB101 19661 HLH 69151 b

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

 

 

SB3469- 46 -LRB101 19661 HLH 69151 b

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

 

 

SB3469- 47 -LRB101 19661 HLH 69151 b

1this Section shall be adopted and a certified copy thereof
2filed with the Department on or before June 1, whereupon the
3Department of Revenue shall proceed to administer and enforce
4this Section on behalf of the Metro East Mass Transit District
5as of September 1 next following such adoption and filing.
6Beginning January 1, 1992, an ordinance or resolution imposing
7or discontinuing the tax hereunder shall be adopted and a
8certified copy thereof filed with the Department on or before
9the first day of July, whereupon the Department shall proceed
10to administer and enforce this Section as of the first day of
11October next following such adoption and filing. Beginning
12January 1, 1993, except as provided in subsection (d-5) of this
13Section, an ordinance or resolution imposing or discontinuing
14the tax hereunder shall be adopted and a certified copy thereof
15filed with the Department on or before the first day of
16October, whereupon the Department shall proceed to administer
17and enforce this Section as of the first day of January next
18following such adoption and filing, or, beginning January 1,
192004, on or before the first day of April, whereupon the
20Department shall proceed to administer and enforce this Section
21as of the first day of July next following the adoption and
22filing.
23    (h) Except as provided in subsection (d-7.1), the State
24Department of Revenue shall, upon collecting any taxes as
25provided in this Section, pay the taxes over to the State
26Treasurer as trustee for the District. The taxes shall be held

 

 

SB3469- 48 -LRB101 19661 HLH 69151 b

1in a trust fund outside the State Treasury. If an
2airport-related purpose has been certified, taxes and
3penalties collected in St. Clair County on aviation fuel sold
4on or after December 1, 2019 from the 0.50% of the 0.75% rate
5shall be immediately paid over by the Department to the State
6Treasurer, ex officio, as trustee, for deposit into the Local
7Government Aviation Trust Fund. The Department shall only pay
8moneys into the Local Government Aviation Trust Fund under this
9Act for so long as the revenue use requirements of 49 U.S.C.
1047107(b) and 49 U.S.C. 47133 are binding on the District.
11    As soon as possible after the first day of each month,
12beginning January 1, 2011, upon certification of the Department
13of Revenue, the Comptroller shall order transferred, and the
14Treasurer shall transfer, to the STAR Bonds Revenue Fund the
15local sales tax increment, as defined in the Innovation
16Development and Economy Act, collected under this Section
17during the second preceding calendar month for sales within a
18STAR bond district. The Department shall make this
19certification only if the local mass transit district imposes a
20tax on real property as provided in the definition of "local
21sales taxes" under the Innovation Development and Economy Act.
22    After the monthly transfer to the STAR Bonds Revenue Fund,
23on or before the 25th day of each calendar month, the State
24Department of Revenue shall prepare and certify to the
25Comptroller of the State of Illinois the amount to be paid to
26the District, which shall be the amount (not including credit

 

 

SB3469- 49 -LRB101 19661 HLH 69151 b

1memoranda and not including taxes and penalties collected on
2aviation fuel sold on or after December 1, 2019 that are
3deposited into the Local Government Aviation Trust Fund)
4collected under this Section during the second preceding
5calendar month by the Department plus an amount the Department
6determines is necessary to offset any amounts that were
7erroneously paid to a different taxing body, and not including
8any amount equal to the amount of refunds made during the
9second preceding calendar month by the Department on behalf of
10the District, and not including any amount that the Department
11determines is necessary to offset any amounts that were payable
12to a different 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    (i) Notwithstanding any other provision of law, no tax may
26be imposed under this Section on the sale or use of cannabis,

 

 

SB3469- 50 -LRB101 19661 HLH 69151 b

1as defined in Section 1-10 of the Cannabis Regulation and Tax
2Act.
3(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
4101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
 
5    Section 30. The Regional Transportation Authority Act is
6amended by changing Section 4.03 as follows:
 
7    (70 ILCS 3615/4.03)  (from Ch. 111 2/3, par. 704.03)
8    Sec. 4.03. Taxes.
9    (a) In order to carry out any of the powers or purposes of
10the Authority, the Board may by ordinance adopted with the
11concurrence of 12 of the then Directors, impose throughout the
12metropolitan region any or all of the taxes provided in this
13Section. Except as otherwise provided in this Act, taxes
14imposed under this Section and civil penalties imposed incident
15thereto shall be collected and enforced by the State Department
16of Revenue. The Department shall have the power to administer
17and enforce the taxes and to determine all rights for refunds
18for erroneous payments of the taxes. Nothing in Public Act
1995-708 is intended to invalidate any taxes currently imposed by
20the Authority. The increased vote requirements to impose a tax
21shall only apply to actions taken after January 1, 2008 (the
22effective date of Public Act 95-708).
23    (b) The Board may impose a public transportation tax upon
24all persons engaged in the metropolitan region in the business

 

 

SB3469- 51 -LRB101 19661 HLH 69151 b

1of selling at retail motor fuel for operation of motor vehicles
2upon public highways. The tax shall be at a rate not to exceed
35% of the gross receipts from the sales of motor fuel in the
4course of the business. As used in this Act, the term "motor
5fuel" shall have the same meaning as in the Motor Fuel Tax Law.
6The Board may provide for details of the tax. The provisions of
7any tax shall conform, as closely as may be practicable, to the
8provisions of the Municipal Retailers Occupation Tax Act,
9including without limitation, conformity to penalties with
10respect to the tax imposed and as to the powers of the State
11Department of Revenue to promulgate and enforce rules and
12regulations relating to the administration and enforcement of
13the provisions of the tax imposed, except that reference in the
14Act to any municipality shall refer to the Authority and the
15tax shall be imposed only with regard to receipts from sales of
16motor fuel in the metropolitan region, at rates as limited by
17this Section.
18    (c) In connection with the tax imposed under paragraph (b)
19of this Section, the Board may impose a tax upon the privilege
20of using in the metropolitan region motor fuel for the
21operation of a motor vehicle upon public highways, the tax to
22be at a rate not in excess of the rate of tax imposed under
23paragraph (b) of this Section. The Board may provide for
24details of the tax.
25    (d) The Board may impose a motor vehicle parking tax upon
26the privilege of parking motor vehicles at off-street parking

 

 

SB3469- 52 -LRB101 19661 HLH 69151 b

1facilities in the metropolitan region at which a fee is
2charged, and may provide for reasonable classifications in and
3exemptions to the tax, for administration and enforcement
4thereof and for civil penalties and refunds thereunder and may
5provide criminal penalties thereunder, the maximum penalties
6not to exceed the maximum criminal penalties provided in the
7Retailers' Occupation Tax Act. The Authority may collect and
8enforce the tax itself or by contract with any unit of local
9government. The State Department of Revenue shall have no
10responsibility for the collection and enforcement unless the
11Department agrees with the Authority to undertake the
12collection and enforcement. As used in this paragraph, the term
13"parking facility" means a parking area or structure having
14parking spaces for more than 2 vehicles at which motor vehicles
15are permitted to park in return for an hourly, daily, or other
16periodic fee, whether publicly or privately owned, but does not
17include parking spaces on a public street, the use of which is
18regulated by parking meters.
19    (e) The Board may impose a Regional Transportation
20Authority Retailers' Occupation Tax upon all persons engaged in
21the business of selling tangible personal property at retail in
22the metropolitan region. In Cook County, the tax rate shall be
231.25% of the gross receipts from sales of tangible personal
24property taxed at the 1% rate under the Retailers' Occupation
25Tax Act, and 1% of the gross receipts from other taxable sales
26made in the course of that business. In DuPage, Kane, Lake,

 

 

SB3469- 53 -LRB101 19661 HLH 69151 b

1McHenry, and Will counties, the tax rate shall be 0.75% of the
2gross receipts from all taxable sales made in the course of
3that business. The rate of tax imposed in DuPage, Kane, Lake,
4McHenry, and Will counties under this Section on sales of
5aviation fuel on or after December 1, 2019 shall, however, be
60.25% unless the Regional Transportation Authority in DuPage,
7Kane, Lake, McHenry, and Will counties has an "airport-related
8purpose" and the additional 0.50% of the 0.75% tax on aviation
9fuel is expended for airport-related purposes. If there is no
10airport-related purpose to which aviation fuel tax revenue is
11dedicated, then aviation fuel is excluded from the additional
120.50% of the 0.75% tax. The tax imposed under this Section and
13all civil penalties that may be assessed as an incident thereof
14shall be collected and enforced by the State Department of
15Revenue. The Department shall have full power to administer and
16enforce this Section; to collect all taxes and penalties so
17collected in the manner hereinafter provided; and to determine
18all rights to credit memoranda arising on account of the
19erroneous payment of tax or penalty hereunder. In the
20administration of, and compliance with this Section, the
21Department and persons who are subject to this Section shall
22have the same rights, remedies, privileges, immunities,
23powers, and duties, and be subject to the same conditions,
24restrictions, limitations, penalties, exclusions, exemptions,
25and definitions of terms, and employ the same modes of
26procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,

 

 

SB3469- 54 -LRB101 19661 HLH 69151 b

11e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
2therein other than the State rate of tax), 2c, 3 (except as to
3the disposition of taxes and penalties collected, and except
4that the retailer's discount is not allowed for taxes paid on
5aviation fuel that are subject to the revenue use requirements
6of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
75d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
810, 11, 12, and 13 of the Retailers' Occupation Tax Act and
9Section 3-7 of the Uniform Penalty and Interest Act, as fully
10as if those provisions were set forth herein.
11    The Board and DuPage, Kane, Lake, McHenry, and Will
12counties must comply with the certification requirements for
13airport-related purposes under Section 2-22 of the Retailers'
14Occupation Tax Act. For purposes of this Section,
15"airport-related purposes" has the meaning ascribed in Section
166z-20.2 of the State Finance Act. This exclusion 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
19Authority.
20    Persons subject to any tax imposed under the authority
21granted in this Section may reimburse themselves for their
22seller's tax liability hereunder by separately stating the tax
23as an additional charge, which charge may be stated in
24combination in a single amount with State taxes that sellers
25are required to collect under the Use Tax Act, under any
26bracket schedules the Department may prescribe.

 

 

SB3469- 55 -LRB101 19661 HLH 69151 b

1    Whenever the Department determines that a refund should be
2made under this Section 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 Regional Transportation Authority tax fund
8established under paragraph (n) of this Section or the Local
9Government Aviation Trust Fund, as appropriate.
10    If a tax is imposed under this subsection (e), a tax shall
11also be imposed under subsections (f) and (g) of this Section.
12    For the purpose of determining whether a tax authorized
13under this Section is applicable, a retail sale by a producer
14of coal or other mineral mined in Illinois, is a sale at retail
15at the place where the coal or other mineral mined in Illinois
16is extracted from the earth. This paragraph does not apply to
17coal or other mineral when it is delivered or shipped by the
18seller to the purchaser at a point outside Illinois so that the
19sale is exempt under the Federal Constitution as a sale in
20interstate or foreign commerce.
21    No tax shall be imposed or collected under this subsection
22on the sale of a motor vehicle in this State to a resident of
23another state if that motor vehicle will not be titled in this
24State.
25    Nothing in this Section shall be construed to authorize the
26Regional Transportation Authority to impose a tax upon the

 

 

SB3469- 56 -LRB101 19661 HLH 69151 b

1privilege of engaging in any business that under the
2Constitution of the United States may not be made the subject
3of taxation by this State.
4    (f) If a tax has been imposed under paragraph (e), a
5Regional Transportation Authority Service Occupation Tax shall
6also be imposed upon all persons engaged, in the metropolitan
7region in the business of making sales of service, who as an
8incident to making the sales of service, transfer tangible
9personal property within the metropolitan region, either in the
10form of tangible personal property or in the form of real
11estate as an incident to a sale of service. In Cook County, the
12tax rate shall be: (1) 1.25% of the serviceman's cost price of
13food prepared for immediate consumption and transferred
14incident to a sale of service subject to the service occupation
15tax by an entity licensed under the Hospital Licensing Act, the
16Nursing Home Care Act, the Specialized Mental Health
17Rehabilitation Act of 2013, the ID/DD Community Care Act, or
18the MC/DD Act that is located in the metropolitan region; (2)
191.25% of the selling price of tangible personal property taxed
20at the 1% rate under the Service Occupation Tax Act; and (3) 1%
21of the selling price from other taxable sales of tangible
22personal property transferred. In DuPage, Kane, Lake, McHenry,
23and Will counties, the rate shall be 0.75% of the selling price
24of all tangible personal property transferred. The rate of tax
25imposed in DuPage, Kane, Lake, McHenry, and Will counties under
26this Section on sales of aviation fuel on or after December 1,

 

 

SB3469- 57 -LRB101 19661 HLH 69151 b

12019 shall, however, 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 additional 0.5% of the 0.75%
8tax.
9    The Board and DuPage, Kane, Lake, McHenry, and Will
10counties must comply with the certification requirements for
11airport-related purposes under Section 2-22 of the Retailers'
12Occupation Tax Act. For purposes of this Section,
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
17Authority.
18    The tax imposed under this paragraph and all civil
19penalties that may be assessed as an incident thereof shall be
20collected and enforced by the State Department of Revenue. The
21Department shall have full power to administer and enforce this
22paragraph; to collect all taxes and penalties due hereunder; to
23dispose of taxes and penalties collected in the manner
24hereinafter provided; and to determine all rights to credit
25memoranda arising on account of the erroneous payment of tax or
26penalty hereunder. In the administration of and compliance with

 

 

SB3469- 58 -LRB101 19661 HLH 69151 b

1this paragraph, the Department and persons who are subject to
2this paragraph shall have the same rights, remedies,
3privileges, immunities, powers, and duties, and be subject to
4the same conditions, restrictions, limitations, penalties,
5exclusions, exemptions, and definitions of terms, and employ
6the same modes of procedure, as are prescribed in Sections
71a-1, 2, 2a, 3 through 3-50 (in respect to all provisions
8therein other than the State rate of tax), 4 (except that the
9reference to the State shall be to the Authority), 5, 7, 8
10(except that the jurisdiction to which the tax shall be a debt
11to the extent indicated in that Section 8 shall be the
12Authority), 9 (except as to the disposition of taxes and
13penalties collected, and except that the returned merchandise
14credit for this tax may not be taken against any State tax, and
15except that the retailer's discount is not allowed for taxes
16paid on aviation fuel that are subject to the revenue use
17requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
1811, 12 (except the reference therein to Section 2b of the
19Retailers' Occupation Tax Act), 13 (except that any reference
20to the State shall mean the Authority), the first paragraph of
21Section 15, 16, 17, 18, 19, and 20 of the Service Occupation
22Tax Act and Section 3-7 of the Uniform Penalty and Interest
23Act, as fully as if those provisions were set forth herein.
24    Persons subject to any tax imposed under the authority
25granted in this paragraph may reimburse themselves for their
26serviceman's tax liability hereunder by separately stating the

 

 

SB3469- 59 -LRB101 19661 HLH 69151 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    Whenever the Department determines that a refund should be
6made under this paragraph to a claimant instead of issuing a
7credit memorandum, the Department shall notify the State
8Comptroller, who shall cause the warrant 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 Regional Transportation Authority tax fund
12established under paragraph (n) of this Section or the Local
13Government Aviation Trust Fund, as appropriate.
14    Nothing in this paragraph shall be construed to authorize
15the Authority to impose a tax upon the privilege of engaging in
16any business that under the Constitution of the United States
17may not be made the subject of taxation by the State.
18    (g) If a tax has been imposed under paragraph (e), a tax
19shall also be imposed upon the privilege of using in the
20metropolitan region, any item of tangible personal property
21that is purchased outside the metropolitan region at retail
22from a retailer, and that is titled or registered with an
23agency of this State's government. In Cook County, the tax rate
24shall be 1% of the selling price of the tangible personal
25property, as "selling price" is defined in the Use Tax Act. In
26DuPage, Kane, Lake, McHenry, and Will counties, the tax rate

 

 

SB3469- 60 -LRB101 19661 HLH 69151 b

1shall be 0.75% of the selling price of the tangible personal
2property, as "selling price" is defined in the Use Tax Act. The
3tax shall be collected from persons whose Illinois address for
4titling or registration purposes is given as being in the
5metropolitan region. The tax shall be collected by the
6Department of Revenue for the Regional Transportation
7Authority. The tax must be paid to the State, or an exemption
8determination must be obtained from the Department of Revenue,
9before the title or certificate of registration for the
10property may be issued. The tax or proof of exemption may be
11transmitted to the Department by way of the State agency with
12which, or the State officer with whom, the tangible personal
13property must be titled or registered if the Department and the
14State agency or State officer determine that this procedure
15will expedite the processing of applications for title or
16registration.
17    The Department shall have full power to administer and
18enforce this paragraph; to collect all taxes, penalties, and
19interest due hereunder; to dispose of taxes, penalties, and
20interest collected in the manner hereinafter provided; and to
21determine all rights to credit memoranda or refunds arising on
22account of the erroneous payment of tax, penalty, or interest
23hereunder. In the administration of and compliance with this
24paragraph, the Department and persons who are subject to this
25paragraph shall have the same rights, remedies, privileges,
26immunities, powers, and duties, and be subject to the same

 

 

SB3469- 61 -LRB101 19661 HLH 69151 b

1conditions, restrictions, limitations, penalties, exclusions,
2exemptions, and definitions of terms and employ the same modes
3of procedure, as are prescribed in Sections 2 (except the
4definition of "retailer maintaining a place of business in this
5State"), 3 through 3-80 (except provisions pertaining to the
6State rate of tax, and except provisions concerning collection
7or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
819 (except the portions pertaining to claims by retailers and
9except the last paragraph concerning refunds), 20, 21, and 22
10of the Use Tax Act, and are not inconsistent with this
11paragraph, as fully as if those provisions were set forth
12herein.
13    Whenever the Department determines that a refund should be
14made under this paragraph 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 Regional Transportation Authority tax fund
20established under paragraph (n) of this Section.
21    (h) The Authority may impose a replacement vehicle tax of
22$50 on any passenger car as defined in Section 1-157 of the
23Illinois Vehicle Code purchased within the metropolitan region
24by or on behalf of an insurance company to replace a passenger
25car of an insured person in settlement of a total loss claim.
26The tax imposed may not become effective before the first day

 

 

SB3469- 62 -LRB101 19661 HLH 69151 b

1of the month following the passage of the ordinance imposing
2the tax and receipt of a certified copy of the ordinance by the
3Department of Revenue. The Department of Revenue shall collect
4the tax for the Authority in accordance with Sections 3-2002
5and 3-2003 of the Illinois Vehicle Code.
6    The Department shall immediately pay over to the State
7Treasurer, ex officio, as trustee, all taxes collected
8hereunder.
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

 

 

SB3469- 63 -LRB101 19661 HLH 69151 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

 

 

SB3469- 64 -LRB101 19661 HLH 69151 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,

 

 

SB3469- 65 -LRB101 19661 HLH 69151 b

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. If an
21airport-related purpose has been certified, taxes and
22penalties collected in DuPage, Kane, Lake, McHenry and Will
23counties on aviation fuel sold on or after December 1, 2019
24from the 0.50% of the 0.75% rate shall be immediately paid over
25by the Department to the State Treasurer, ex officio, as
26trustee, for deposit into the Local Government Aviation Trust

 

 

SB3469- 66 -LRB101 19661 HLH 69151 b

1Fund. The Department shall only pay moneys into the Local
2Government Aviation Trust Fund under this Act for so long as
3the revenue use requirements of 49 U.S.C. 47107(b) and 49
4U.S.C. 47133 are binding on the Authority. On or before the
525th day of each calendar month, the State Department of
6Revenue shall prepare and certify to the Comptroller of the
7State of Illinois and to the Authority (i) the amount of taxes
8collected in each county other than Cook County in the
9metropolitan region, (not including, if an airport-related
10purpose has been certified, the taxes and penalties collected
11from the 0.50% of the 0.75% rate on aviation fuel sold on or
12after December 1, 2019 that are deposited into the Local
13Government Aviation Trust Fund) (ii) the amount of taxes
14collected within the City of Chicago, and (iii) the amount
15collected in that portion of Cook County outside of Chicago,
16each amount less the amount necessary for the payment of
17refunds to taxpayers located in those areas described in items
18(i), (ii), and (iii), and less 1.5% of the remainder, which
19shall be transferred from the trust fund into the Tax
20Compliance and Administration Fund. The Department, at the time
21of each monthly disbursement to the Authority, shall prepare
22and certify to the State Comptroller the amount to be
23transferred into the Tax Compliance and Administration Fund
24under this subsection. Within 10 days after receipt by the
25Comptroller of the certification of the amounts, the
26Comptroller shall cause an order to be drawn for the transfer

 

 

SB3469- 67 -LRB101 19661 HLH 69151 b

1of the amount certified into the Tax Compliance and
2Administration Fund and the payment of two-thirds of the
3amounts certified in item (i) of this subsection to the
4Authority and one-third of the amounts certified in item (i) of
5this subsection to the respective counties other than Cook
6County and the amount certified in items (ii) and (iii) of this
7subsection to the Authority.
8    In addition to the disbursement required by the preceding
9paragraph, an allocation shall be made in July 1991 and each
10year thereafter to the Regional Transportation Authority. The
11allocation shall be made in an amount equal to the average
12monthly distribution during the preceding calendar year
13(excluding the 2 months of lowest receipts) and the allocation
14shall include the amount of average monthly distribution from
15the Regional Transportation Authority Occupation and Use Tax
16Replacement Fund. The distribution made in July 1992 and each
17year thereafter under this paragraph and the preceding
18paragraph shall be reduced by the amount allocated and
19disbursed under this paragraph in the preceding calendar year.
20The Department of Revenue shall prepare and certify to the
21Comptroller for disbursement the allocations made in
22accordance with this paragraph.
23    (o) Failure to adopt a budget ordinance or otherwise to
24comply with Section 4.01 of this Act or to adopt a Five-year
25Capital Program or otherwise to comply with paragraph (b) of
26Section 2.01 of this Act shall not affect the validity of any

 

 

SB3469- 68 -LRB101 19661 HLH 69151 b

1tax imposed by the Authority otherwise in conformity with law.
2    (p) At no time shall a public transportation tax or motor
3vehicle parking tax authorized under paragraphs (b), (c), and
4(d) of this Section be in effect at the same time as any
5retailers' occupation, use or service occupation tax
6authorized under paragraphs (e), (f), and (g) of this Section
7is in effect.
8    Any taxes imposed under the authority provided in
9paragraphs (b), (c), and (d) shall remain in effect only until
10the time as any tax authorized by paragraph (e), (f), or (g) of
11this Section are imposed and becomes effective. Once any tax
12authorized by paragraph (e), (f), or (g) is imposed the Board
13may not reimpose taxes as authorized in paragraphs (b), (c),
14and (d) of the Section unless any tax authorized by paragraph
15(e), (f), or (g) of this Section becomes ineffective by means
16other than an ordinance of the Board.
17    (q) Any existing rights, remedies and obligations
18(including enforcement by the Regional Transportation
19Authority) arising under any tax imposed under paragraph (b),
20(c), or (d) of this Section shall not be affected by the
21imposition of a tax under paragraph (e), (f), or (g) of this
22Section.
23    (r) Notwithstanding any other provision of law, no tax may
24be imposed under this Section on the sale or use of cannabis,
25as defined in Section 1-10 of the Cannabis Regulation and Tax
26Act.

 

 

SB3469- 69 -LRB101 19661 HLH 69151 b

1(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
2100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
37-12-19; 101-604, eff. 12-13-19.)
 
4    Section 35. The Water Commission Act of 1985 is amended by
5changing Section 4 as follows:
 
6    (70 ILCS 3720/4)  (from Ch. 111 2/3, par. 254)
7    Sec. 4. Taxes.
8    (a) The board of commissioners of any county water
9commission may, by ordinance, impose throughout the territory
10of the commission any or all of the taxes provided in this
11Section for its corporate purposes. However, no county water
12commission may impose any such tax unless the commission
13certifies the proposition of imposing the tax to the proper
14election officials, who shall submit the proposition to the
15voters residing in the territory at an election in accordance
16with the general election law, and the proposition has been
17approved by a majority of those voting on the proposition.
18    The proposition shall be in the form provided in Section 5
19or shall be substantially in the following form:
20-------------------------------------------------------------
21    Shall the (insert corporate
22name of county water commission)           YES
23impose (state type of tax or         ------------------------
24taxes to be imposed) at the                NO

 

 

SB3469- 70 -LRB101 19661 HLH 69151 b

1rate of 1/4%?
2-------------------------------------------------------------
3    Taxes imposed under this Section and civil penalties
4imposed incident thereto shall be collected and enforced by the
5State Department of Revenue. The Department shall have the
6power to administer and enforce the taxes and to determine all
7rights for refunds for erroneous payments of the taxes.
8    (b) The board of commissioners may impose a County Water
9Commission Retailers' Occupation Tax upon all persons engaged
10in the business of selling tangible personal property at retail
11in the territory of the commission at a rate of 1/4% of the
12gross receipts from the sales made in the course of such
13business within the territory. Beginning January 1, 2021, this
14tax is not imposed on sales of aviation fuel for so long as the
15revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1647133 are binding on the District.
17    The tax imposed under this paragraph 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
21paragraph; to collect all taxes and penalties due hereunder; to
22dispose of taxes and penalties so 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. In the administration of, and compliance
26with, this paragraph, the Department and persons who are

 

 

SB3469- 71 -LRB101 19661 HLH 69151 b

1subject to 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 1, 1a,
61a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all
7provisions therein other than the State rate of tax except that
8tangible personal property taxed at the 1% rate under the
9Retailers' Occupation Tax Act shall not be subject to tax
10hereunder), 2c, 3 (except as to the disposition of taxes and
11penalties collected, and except that the retailer's discount is
12not allowed for taxes paid on aviation fuel sold on or after
13December 1, 2019 and through December 31, 2020), 4, 5, 5a, 5b,
145c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8,
159, 10, 11, 12, and 13 of the Retailers' Occupation Tax Act and
16Section 3-7 of the Uniform Penalty and Interest Act, as fully
17as if those provisions were set forth herein.
18    Persons subject to any tax imposed under the authority
19granted in this paragraph may reimburse themselves for their
20seller's tax liability hereunder by separately stating the tax
21as an additional charge, which charge may be stated in
22combination, in a single amount, with State taxes that sellers
23are required to collect under the Use Tax Act and under
24subsection (e) of Section 4.03 of the Regional Transportation
25Authority Act, in accordance with such bracket schedules as the
26Department may prescribe.

 

 

SB3469- 72 -LRB101 19661 HLH 69151 b

1    Whenever the Department determines that a refund should be
2made under this paragraph 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 a county water commission tax fund established
8under subsection (g) of this Section.
9    For the purpose of determining whether a tax authorized
10under this paragraph is applicable, a retail sale by a producer
11of coal or other mineral mined in Illinois is a sale at retail
12at the place where the coal or other mineral mined in Illinois
13is extracted from the earth. This paragraph does not apply to
14coal or other mineral when it is delivered or shipped by the
15seller to the purchaser at a point outside Illinois so that the
16sale is exempt under the Federal Constitution as a sale in
17interstate or foreign commerce.
18    If a tax is imposed under this subsection (b), a tax shall
19also be imposed under subsections (c) and (d) of this Section.
20    No tax shall be imposed or collected under this subsection
21on the sale of a motor vehicle in this State to a resident of
22another state if that motor vehicle will not be titled in this
23State.
24    Nothing in this paragraph shall be construed to authorize a
25county water commission to impose a tax upon the privilege of
26engaging in any business which under the Constitution of the

 

 

SB3469- 73 -LRB101 19661 HLH 69151 b

1United States may not be made the subject of taxation by this
2State.
3    (c) If a tax has been imposed under subsection (b), a
4County Water Commission Service Occupation Tax shall also be
5imposed upon all persons engaged, in the territory of the
6commission, in the business of making sales of service, who, as
7an incident to making the sales of service, transfer tangible
8personal property within the territory. The tax rate shall be
91/4% of the selling price of tangible personal property so
10transferred within the territory. Beginning January 1, 2021,
11this tax is not imposed on sales of aviation fuel 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
24subject to this paragraph shall have the same rights, remedies,
25privileges, immunities, powers and duties, and be subject to
26the same conditions, restrictions, limitations, penalties,

 

 

SB3469- 74 -LRB101 19661 HLH 69151 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 territory of the commission), 2a, 3 through 3-50 (in
6respect to all provisions therein other than the State rate of
7tax except that tangible personal property taxed at the 1% rate
8under the Service Occupation Tax Act shall not be subject to
9tax hereunder), 4 (except that the reference to the State shall
10be to the territory of the commission), 5, 7, 8 (except that
11the jurisdiction to which the tax shall be a debt to the extent
12indicated in that Section 8 shall be the commission), 9 (except
13as to the disposition of taxes and penalties collected and
14except that the returned merchandise credit for this tax may
15not be taken against any State tax, and except that the
16retailer's discount is not allowed for taxes paid on aviation
17fuel sold on or after December 1, 2019 and through December 31,
182020), 10, 11, 12 (except the reference therein to Section 2b
19of the Retailers' Occupation Tax Act), 13 (except that any
20reference to the State shall mean the territory of the
21commission), the first paragraph of Section 15, 15.5, 16, 17,
2218, 19, and 20 of the Service Occupation Tax Act as fully as if
23those provisions were set forth herein.
24    Persons subject to any tax imposed under the authority
25granted in this paragraph may reimburse themselves for their
26serviceman's tax liability hereunder by separately stating the

 

 

SB3469- 75 -LRB101 19661 HLH 69151 b

1tax as an additional charge, which 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, and
4any tax for which servicemen may be liable under subsection (f)
5of Section 4.03 of the Regional Transportation Authority Act,
6in accordance with such bracket schedules as the Department may
7prescribe.
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 warrant 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 a county water commission tax fund established
15under subsection (g) of this Section.
16    Nothing in this paragraph shall be construed to authorize a
17county water commission to impose a tax upon the privilege of
18engaging in any business which under the Constitution of the
19United States may not be made the subject of taxation by the
20State.
21    (d) If a tax has been imposed under subsection (b), a tax
22shall also be imposed upon the privilege of using, in the
23territory of the commission, any item of tangible personal
24property that is purchased outside the territory at retail from
25a retailer, and that is titled or registered with an agency of
26this State's government, at a rate of 1/4% of the selling price

 

 

SB3469- 76 -LRB101 19661 HLH 69151 b

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

 

 

SB3469- 77 -LRB101 19661 HLH 69151 b

1exclusions, exemptions, and definitions of terms and employ the
2same modes of procedure, as are prescribed in Sections 2
3(except the definition of "retailer maintaining a place of
4business in this State"), 3 through 3-80 (except provisions
5pertaining to the State rate of tax, and except provisions
6concerning collection or refunding of the tax by retailers), 4,
711, 12, 12a, 14, 15, 19 (except the portions pertaining to
8claims by retailers and except the last paragraph concerning
9refunds), 20, 21, and 22 of the Use Tax Act and Section 3-7 of
10the Uniform Penalty and Interest Act that are not inconsistent
11with this paragraph, as fully as if those provisions were set
12forth herein.
13    Whenever the Department determines that a refund should be
14made under this paragraph 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 a county water commission tax fund established
20under subsection (g) of this Section.
21    (e) A certificate of registration issued by the State
22Department of Revenue to a retailer under the Retailers'
23Occupation Tax Act or under the Service Occupation Tax Act
24shall permit the registrant to engage in a business that is
25taxed under the tax imposed under subsection (b), (c), or (d)
26of this Section and no additional registration shall be

 

 

SB3469- 78 -LRB101 19661 HLH 69151 b

1required under the tax. A certificate issued under the Use Tax
2Act or the Service Use Tax Act shall be applicable with regard
3to any tax imposed under subsection (c) of this Section.
4    (f) Any ordinance imposing or discontinuing any tax under
5this Section shall be adopted and a certified copy thereof
6filed with the Department on or before June 1, whereupon the
7Department of Revenue shall proceed to administer and enforce
8this Section on behalf of the county water commission as of
9September 1 next following the adoption and filing. Beginning
10January 1, 1992, an ordinance or resolution imposing or
11discontinuing the tax hereunder shall be adopted and a
12certified copy thereof filed with the Department on or before
13the first day of July, whereupon the Department shall proceed
14to administer and enforce this Section as of the first day of
15October next following such adoption and filing. Beginning
16January 1, 1993, an ordinance or resolution imposing or
17discontinuing the tax hereunder shall be adopted and a
18certified copy thereof filed with the Department on or before
19the first day of October, whereupon the Department shall
20proceed to administer and enforce this Section as of the first
21day of January next following such adoption and filing.
22    (g) The State Department of Revenue shall, upon collecting
23any taxes as provided in this Section, pay the taxes over to
24the State Treasurer as trustee for the commission. The taxes
25shall be held in a trust fund outside the State Treasury.
26    As soon as possible after the first day of each month,

 

 

SB3469- 79 -LRB101 19661 HLH 69151 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 State
10Department of Revenue shall prepare and certify to the
11Comptroller of the State of Illinois the amount to be paid to
12the commission, which shall be the amount (not including credit
13memoranda) collected under this Section during the second
14preceding calendar month by the Department plus an amount the
15Department determines is necessary to offset any amounts that
16were erroneously paid to a different taxing body, and not
17including any amount equal to the amount of refunds made during
18the second preceding calendar month by the Department on behalf
19of the commission, and not including any amount that the
20Department determines is necessary to offset any amounts that
21were payable to a different taxing body but were erroneously
22paid to the commission, and less any amounts that are
23transferred to the STAR Bonds Revenue Fund, less 1.5% of the
24remainder, which shall be transferred into the Tax Compliance
25and Administration Fund. The Department, at the time of each
26monthly disbursement to the commission, shall prepare and

 

 

SB3469- 80 -LRB101 19661 HLH 69151 b

1certify to the State Comptroller the amount to be transferred
2into the Tax Compliance and Administration Fund under this
3subsection. Within 10 days after receipt by the Comptroller of
4the certification of the amount to be paid to the commission
5and the Tax Compliance and Administration Fund, the Comptroller
6shall cause an order to be drawn for the payment for the amount
7in accordance with the direction in the certification.
8    (h) Beginning June 1, 2016, any tax imposed pursuant to
9this Section may no longer be imposed or collected, unless a
10continuation of the tax is approved by the voters at a
11referendum as set forth in this Section.
12    (i) Notwithstanding any other provision of law, no tax may
13be imposed under this Section on the sale or use of cannabis,
14as defined in Section 1-10 of the Cannabis Regulation and Tax
15Act.
16(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
17100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, eff.
186-5-19; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19.)
 
19    Section 40. The Cannabis Regulation and Tax Act is amended
20by changing Sections 1-10, 20-50, 60-10, and 65-10 as follows:
 
21    (410 ILCS 705/1-10)
22    Sec. 1-10. Definitions. In this Act:
23    "Adult Use Cultivation Center License" means a license
24issued by the Department of Agriculture that permits a person

 

 

SB3469- 81 -LRB101 19661 HLH 69151 b

1to act as a cultivation center under this Act and any
2administrative rule made in furtherance of this Act.
3    "Adult Use Dispensing Organization License" means a
4license issued by the Department of Financial and Professional
5Regulation that permits a person to act as a dispensing
6organization under this Act and any administrative rule made in
7furtherance of this Act.
8    "Advertise" means to engage in promotional activities
9including, but not limited to: newspaper, radio, Internet and
10electronic media, and television advertising; the distribution
11of fliers and circulars; billboard advertising; and the display
12of window and interior signs. "Advertise" does not mean
13exterior signage displaying only the name of the licensed
14cannabis business establishment.
15    "BLS Region" means a region in Illinois used by the United
16States Bureau of Labor Statistics to gather and categorize
17certain employment and wage data. The 17 such regions in
18Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
19Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
20Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
21Rockford, St. Louis, Springfield, Northwest Illinois
22nonmetropolitan area, West Central Illinois nonmetropolitan
23area, East Central Illinois nonmetropolitan area, and South
24Illinois nonmetropolitan area.
25    "Cannabis" means marijuana, hashish, and other substances
26that are identified as including any parts of the plant

 

 

SB3469- 82 -LRB101 19661 HLH 69151 b

1Cannabis sativa and including derivatives or subspecies, such
2as indica, of all strains of cannabis, whether growing or not;
3the seeds thereof, the resin extracted from any part of the
4plant; and any compound, manufacture, salt, derivative,
5mixture, or preparation of the plant, its seeds, or resin,
6including tetrahydrocannabinol (THC) and all other naturally
7produced cannabinol derivatives, whether produced directly or
8indirectly by extraction; however, "cannabis" does not include
9the mature stalks of the plant, fiber produced from the stalks,
10oil or cake made from the seeds of the plant, any other
11compound, manufacture, salt, derivative, mixture, or
12preparation of the mature stalks (except the resin extracted
13from it), fiber, oil or cake, or the sterilized seed of the
14plant that is incapable of germination. "Cannabis" does not
15include industrial hemp as defined and authorized under the
16Industrial Hemp Act. "Cannabis" also means cannabis flower,
17concentrate, and cannabis-infused products.
18    "Cannabis business establishment" means a cultivation
19center, craft grower, processing organization, infuser
20organization, dispensing organization, or transporting
21organization.
22    "Cannabis concentrate" means a product derived from
23cannabis that is produced by extracting cannabinoids,
24including tetrahydrocannabinol (THC), from the plant through
25the use of propylene glycol, glycerin, butter, olive oil or
26other typical cooking fats; water, ice, or dry ice; or butane,

 

 

SB3469- 83 -LRB101 19661 HLH 69151 b

1propane, CO2, ethanol, or isopropanol and with the intended use
2of smoking or making a cannabis-infused product. The use of any
3other solvent is expressly prohibited unless and until it is
4approved by the Department of Agriculture.
5    "Cannabis container" means a sealed, traceable, container,
6or package used for the purpose of containment of cannabis or
7cannabis-infused product during transportation.
8    "Cannabis flower" means marijuana, hashish, and other
9substances that are identified as including any parts of the
10plant Cannabis sativa and including derivatives or subspecies,
11such as indica, of all strains of cannabis; including raw kief,
12leaves, and buds, but not resin that has been extracted from
13any part of such plant; nor any compound, manufacture, salt,
14derivative, mixture, or preparation of such plant, its seeds,
15or resin.
16    "Cannabis-infused product" means a beverage, food, oil,
17ointment, tincture, topical formulation, or another product
18containing cannabis or cannabis concentrate that is not
19intended to be smoked.
20    "Cannabis paraphernalia" means equipment, products, or
21materials intended to be used for planting, propagating,
22cultivating, growing, harvesting, manufacturing, producing,
23processing, preparing, testing, analyzing, packaging,
24repackaging, storing, containing, concealing, ingesting, or
25otherwise introducing cannabis into the human body.
26    "Cannabis plant monitoring system" or "plant monitoring

 

 

SB3469- 84 -LRB101 19661 HLH 69151 b

1system" means a system that includes, but is not limited to,
2testing and data collection established and maintained by the
3cultivation center, craft grower, or processing organization
4and that is available to the Department of Revenue, the
5Department of Agriculture, the Department of Financial and
6Professional Regulation, and the Department of State Police for
7the purposes of documenting each cannabis plant and monitoring
8plant development throughout the life cycle of a cannabis plant
9cultivated for the intended use by a customer from seed
10planting to final packaging.
11    "Cannabis testing facility" means an entity registered by
12the Department of Agriculture to test cannabis for potency and
13contaminants.
14    "Clone" means a plant section from a female cannabis plant
15not yet rootbound, growing in a water solution or other
16propagation matrix, that is capable of developing into a new
17plant.
18    "Community College Cannabis Vocational Training Pilot
19Program faculty participant" means a person who is 21 years of
20age or older, licensed by the Department of Agriculture, and is
21employed or contracted by an Illinois community college to
22provide student instruction using cannabis plants at an
23Illinois Community College.
24    "Community College Cannabis Vocational Training Pilot
25Program faculty participant Agent Identification Card" means a
26document issued by the Department of Agriculture that

 

 

SB3469- 85 -LRB101 19661 HLH 69151 b

1identifies a person as Community College Cannabis Vocational
2Training Pilot Program faculty participant.
3    "Conditional Adult Use Dispensing Organization License"
4means a license awarded to top-scoring applicants for an Adult
5Use Dispensing Organization License that reserves the right to
6an Adult Use Dispensing Organization License if the applicant
7meets certain conditions described in this Act, but does not
8entitle the recipient to begin purchasing or selling cannabis
9or cannabis-infused products.
10    "Conditional Adult Use Cultivation Center License" means a
11license awarded to top-scoring applicants for an Adult Use
12Cultivation Center License that reserves the right to an Adult
13Use Cultivation Center License if the applicant meets certain
14conditions as determined by the Department of Agriculture by
15rule, but does not entitle the recipient to begin growing,
16processing, or selling cannabis or cannabis-infused products.
17    "Craft grower" means a facility operated by an organization
18or business that is licensed by the Department of Agriculture
19to cultivate, dry, cure, and package cannabis and perform other
20necessary activities to make cannabis available for sale at a
21dispensing organization or use at a processing organization. A
22craft grower may contain up to 5,000 square feet of canopy
23space on its premises for plants in the flowering state. The
24Department of Agriculture may authorize an increase or decrease
25of flowering stage cultivation space in increments of 3,000
26square feet by rule based on market need, craft grower

 

 

SB3469- 86 -LRB101 19661 HLH 69151 b

1capacity, and the licensee's history of compliance or
2noncompliance, with a maximum space of 14,000 square feet for
3cultivating plants in the flowering stage, which must be
4cultivated in all stages of growth in an enclosed and secure
5area. A craft grower may share premises with a processing
6organization or a dispensing organization, or both, provided
7each licensee stores currency and cannabis or cannabis-infused
8products in a separate secured vault to which the other
9licensee does not have access or all licensees sharing a vault
10share more than 50% of the same ownership.
11    "Craft grower agent" means a principal officer, board
12member, employee, or other agent of a craft grower who is 21
13years of age or older.
14    "Craft Grower Agent Identification Card" means a document
15issued by the Department of Agriculture that identifies a
16person as a craft grower agent.
17    "Cultivation center" means a facility operated by an
18organization or business that is licensed by the Department of
19Agriculture to cultivate, process, transport (unless otherwise
20limited by this Act), and perform other necessary activities to
21provide cannabis and cannabis-infused products to cannabis
22business establishments.
23    "Cultivation center agent" means a principal officer,
24board member, employee, or other agent of a cultivation center
25who is 21 years of age or older.
26    "Cultivation Center Agent Identification Card" means a

 

 

SB3469- 87 -LRB101 19661 HLH 69151 b

1document issued by the Department of Agriculture that
2identifies a person as a cultivation center agent.
3    "Currency" means currency and coin of the United States.
4    "Dispensary" means a facility operated by a dispensing
5organization at which activities licensed by this Act may
6occur.
7    "Dispensing organization" means a facility operated by an
8organization or business that is licensed by the Department of
9Financial and Professional Regulation to acquire cannabis from
10a cultivation center, craft grower, processing organization,
11or another dispensary for the purpose of selling or dispensing
12cannabis, cannabis-infused products, cannabis seeds,
13paraphernalia, or related supplies under this Act to purchasers
14or to qualified registered medical cannabis patients and
15caregivers. As used in this Act, "dispensing organization"
16includes a registered medical cannabis organization as defined
17in the Compassionate Use of Medical Cannabis Program Act or its
18successor Act that has obtained an Early Approval Adult Use
19Dispensing Organization License.
20    "Dispensing organization agent" means a principal officer,
21employee, or agent of a dispensing organization who is 21 years
22of age or older.
23    "Dispensing organization agent identification card" means
24a document issued by the Department of Financial and
25Professional Regulation that identifies a person as a
26dispensing organization agent.

 

 

SB3469- 88 -LRB101 19661 HLH 69151 b

1    "Disproportionately Impacted Area" means a census tract or
2comparable geographic area that satisfies the following
3criteria as determined by the Department of Commerce and
4Economic Opportunity, that:
5        (1) meets at least one of the following criteria:
6            (A) the area has a poverty rate of at least 20%
7        according to the latest federal decennial census; or
8            (B) 75% or more of the children in the area
9        participate in the federal free lunch program
10        according to reported statistics from the State Board
11        of Education; or
12            (C) at least 20% of the households in the area
13        receive assistance under the Supplemental Nutrition
14        Assistance Program; or
15            (D) the area has an average unemployment rate, as
16        determined by the Illinois Department of Employment
17        Security, that is more than 120% of the national
18        unemployment average, as determined by the United
19        States Department of Labor, for a period of at least 2
20        consecutive calendar years preceding the date of the
21        application; and
22        (2) has high rates of arrest, conviction, and
23    incarceration related to the sale, possession, use,
24    cultivation, manufacture, or transport of cannabis.
25    "Early Approval Adult Use Cultivation Center License"
26means a license that permits a medical cannabis cultivation

 

 

SB3469- 89 -LRB101 19661 HLH 69151 b

1center licensed under the Compassionate Use of Medical Cannabis
2Program Act as of the effective date of this Act to begin
3cultivating, infusing, packaging, transporting (unless
4otherwise provided in this Act), processing and selling
5cannabis or cannabis-infused product to cannabis business
6establishments for resale to purchasers as permitted by this
7Act as of January 1, 2020.
8    "Early Approval Adult Use Dispensing Organization License"
9means a license that permits a medical cannabis dispensing
10organization licensed under the Compassionate Use of Medical
11Cannabis Program Act as of the effective date of this Act to
12begin selling cannabis or cannabis-infused product to
13purchasers as permitted by this Act as of January 1, 2020.
14    "Early Approval Adult Use Dispensing Organization at a
15secondary site" means a license that permits a medical cannabis
16dispensing organization licensed under the Compassionate Use
17of Medical Cannabis Program Act as of the effective date of
18this Act to begin selling cannabis or cannabis-infused product
19to purchasers as permitted by this Act on January 1, 2020 at a
20different dispensary location from its existing registered
21medical dispensary location.
22    "Enclosed, locked facility" means a room, greenhouse,
23building, or other enclosed area equipped with locks or other
24security devices that permit access only by cannabis business
25establishment agents working for the licensed cannabis
26business establishment or acting pursuant to this Act to

 

 

SB3469- 90 -LRB101 19661 HLH 69151 b

1cultivate, process, store, or distribute cannabis.
2    "Enclosed, locked space" means a closet, room, greenhouse,
3building or other enclosed area equipped with locks or other
4security devices that permit access only by authorized
5individuals under this Act. "Enclosed, locked space" may
6include:
7        (1) a space within a residential building that (i) is
8    the primary residence of the individual cultivating 5 or
9    fewer cannabis plants that are more than 5 inches tall and
10    (ii) includes sleeping quarters and indoor plumbing. The
11    space must only be accessible by a key or code that is
12    different from any key or code that can be used to access
13    the residential building from the exterior; or
14        (2) a structure, such as a shed or greenhouse, that
15    lies on the same plot of land as a residential building
16    that (i) includes sleeping quarters and indoor plumbing and
17    (ii) is used as a primary residence by the person
18    cultivating 5 or fewer cannabis plants that are more than 5
19    inches tall, such as a shed or greenhouse. The structure
20    must remain locked when it is unoccupied by people.
21    "Financial institution" has the same meaning as "financial
22organization" as defined in Section 1501 of the Illinois Income
23Tax Act, and also includes the holding companies, subsidiaries,
24and affiliates of such financial organizations.
25    "Flowering stage" means the stage of cultivation where and
26when a cannabis plant is cultivated to produce plant material

 

 

SB3469- 91 -LRB101 19661 HLH 69151 b

1for cannabis products. This includes mature plants as follows:
2        (1) if greater than 2 stigmas are visible at each
3    internode of the plant; or
4        (2) if the cannabis plant is in an area that has been
5    intentionally deprived of light for a period of time
6    intended to produce flower buds and induce maturation, from
7    the moment the light deprivation began through the
8    remainder of the marijuana plant growth cycle.
9    "Individual" means a natural person.
10    "Infuser organization" or "infuser" means a facility
11operated by an organization or business that is licensed by the
12Department of Agriculture to directly incorporate cannabis or
13cannabis concentrate into a product formulation to produce a
14cannabis-infused product.
15    "Kief" means the resinous crystal-like trichomes that are
16found on cannabis and that are accumulated, resulting in a
17higher concentration of cannabinoids, untreated by heat or
18pressure, or extracted using a solvent.
19    "Labor peace agreement" means an agreement between a
20cannabis business establishment and any labor organization
21recognized under the National Labor Relations Act, referred to
22in this Act as a bona fide labor organization, that prohibits
23labor organizations and members from engaging in picketing,
24work stoppages, boycotts, and any other economic interference
25with the cannabis business establishment. This agreement means
26that the cannabis business establishment has agreed not to

 

 

SB3469- 92 -LRB101 19661 HLH 69151 b

1disrupt efforts by the bona fide labor organization to
2communicate with, and attempt to organize and represent, the
3cannabis business establishment's employees. The agreement
4shall provide a bona fide labor organization access at
5reasonable times to areas in which the cannabis business
6establishment's employees work, for the purpose of meeting with
7employees to discuss their right to representation, employment
8rights under State law, and terms and conditions of employment.
9This type of agreement shall not mandate a particular method of
10election or certification of the bona fide labor organization.
11    "Limited access area" means a room or other area under the
12control of a cannabis dispensing organization licensed under
13this Act and upon the licensed premises where cannabis sales
14occur with access limited to purchasers, dispensing
15organization owners and other dispensing organization agents,
16or service professionals conducting business with the
17dispensing organization, or, if sales to registered qualifying
18patients, caregivers, provisional patients, and Opioid
19Alternative Pilot Program participants licensed pursuant to
20the Compassionate Use of Medical Cannabis Program Act are also
21permitted at the dispensary, registered qualifying patients,
22caregivers, provisional patients, and Opioid Alternative Pilot
23Program participants.
24    "Member of an impacted family" means an individual who has
25a parent, legal guardian, child, spouse, or dependent, or was a
26dependent of an individual who, prior to the effective date of

 

 

SB3469- 93 -LRB101 19661 HLH 69151 b

1this Act, was arrested for, convicted of, or adjudicated
2delinquent for any offense that is eligible for expungement
3under this Act.
4    "Mother plant" means a cannabis plant that is cultivated or
5maintained for the purpose of generating clones, and that will
6not be used to produce plant material for sale to an infuser or
7dispensing organization.
8    "Ordinary public view" means within the sight line with
9normal visual range of a person, unassisted by visual aids,
10from a public street or sidewalk adjacent to real property, or
11from within an adjacent property.
12    "Ownership and control" means ownership of at least 51% of
13the business, including corporate stock if a corporation, and
14control over the management and day-to-day operations of the
15business and an interest in the capital, assets, and profits
16and losses of the business proportionate to percentage of
17ownership.
18    "Person" means a natural individual, firm, partnership,
19association, joint stock company, joint venture, public or
20private corporation, limited liability company, or a receiver,
21executor, trustee, guardian, or other representative appointed
22by order of any court.
23    "Possession limit" means the amount of cannabis under
24Section 10-10 that may be possessed at any one time by a person
2521 years of age or older or who is a registered qualifying
26medical cannabis patient or caregiver under the Compassionate

 

 

SB3469- 94 -LRB101 19661 HLH 69151 b

1Use of Medical Cannabis Program Act.
2    "Principal officer" includes a cannabis business
3establishment applicant or licensed cannabis business
4establishment's board member, owner with more than 1% interest
5of the total cannabis business establishment or more than 5%
6interest of the total cannabis business establishment of a
7publicly traded company, president, vice president, secretary,
8treasurer, partner, officer, member, manager member, or person
9with a profit sharing, financial interest, or revenue sharing
10arrangement. The definition includes a person with authority to
11control the cannabis business establishment, a person who
12assumes responsibility for the debts of the cannabis business
13establishment and who is further defined in this Act.
14    "Primary residence" means a dwelling where a person usually
15stays or stays more often than other locations. It may be
16determined by, without limitation, presence, tax filings;
17address on an Illinois driver's license, an Illinois
18Identification Card, or an Illinois Person with a Disability
19Identification Card; or voter registration. No person may have
20more than one primary residence.
21    "Processing organization" or "processor" means a facility
22operated by an organization or business that is licensed by the
23Department of Agriculture to either extract constituent
24chemicals or compounds to produce cannabis concentrate or
25incorporate cannabis or cannabis concentrate into a product
26formulation to produce a cannabis product.

 

 

SB3469- 95 -LRB101 19661 HLH 69151 b

1    "Processing organization agent" means a principal officer,
2board member, employee, or agent of a processing organization.
3    "Processing organization agent identification card" means
4a document issued by the Department of Agriculture that
5identifies a person as a processing organization agent.
6    "Purchaser" means a person 21 years of age or older who
7acquires cannabis for a valuable consideration. "Purchaser"
8does not include a cardholder under the Compassionate Use of
9Medical Cannabis Program Act.
10    "Qualified Social Equity Applicant" means a Social Equity
11Applicant who has been awarded a conditional license under this
12Act to operate a cannabis business establishment.
13    "Resided" means an individual's primary residence was
14located within the relevant geographic area as established by 2
15of the following:
16        (1) a signed lease agreement that includes the
17    applicant's name;
18        (2) a property deed that includes the applicant's name;
19        (3) school records;
20        (4) a voter registration card;
21        (5) an Illinois driver's license, an Illinois
22    Identification Card, or an Illinois Person with a
23    Disability Identification Card;
24        (6) a paycheck stub;
25        (7) a utility bill;
26        (8) tax records; or

 

 

SB3469- 96 -LRB101 19661 HLH 69151 b

1        (9) any other proof of residency or other information
2    necessary to establish residence as provided by rule.
3    "Smoking" means the inhalation of smoke caused by the
4combustion of cannabis.
5    "Social Equity Applicant" means an applicant that is an
6Illinois resident that meets one of the following criteria:
7        (1) an applicant with at least 51% ownership and
8    control by one or more individuals who have resided for at
9    least 5 of the preceding 10 years in a Disproportionately
10    Impacted Area;
11        (2) an applicant with at least 51% ownership and
12    control by one or more individuals who:
13            (i) have been arrested for, convicted of, or
14        adjudicated delinquent for any offense that is
15        eligible for expungement under this Act; or
16            (ii) is a member of an impacted family;
17        (3) for applicants with a minimum of 10 full-time
18    employees, an applicant with at least 51% of current
19    employees who:
20            (i) currently reside in a Disproportionately
21        Impacted Area; or
22            (ii) have been arrested for, convicted of, or
23        adjudicated delinquent for any offense that is
24        eligible for expungement under this Act or member of an
25        impacted family.
26    Nothing in this Act shall be construed to preempt or limit

 

 

SB3469- 97 -LRB101 19661 HLH 69151 b

1the duties of any employer under the Job Opportunities for
2Qualified Applicants Act. Nothing in this Act shall permit an
3employer to require an employee to disclose sealed or expunged
4offenses, unless otherwise required by law.
5    "Special district" means a unit of local government, other
6than a county, municipality, or school district.
7    "Tincture" means a cannabis-infused solution, typically
8comprised of alcohol, glycerin, or vegetable oils, derived
9either directly from the cannabis plant or from a processed
10cannabis extract. A tincture is not an alcoholic liquor as
11defined in the Liquor Control Act of 1934. A tincture shall
12include a calibrated dropper or other similar device capable of
13accurately measuring servings.
14    "Transporting organization" or "transporter" means an
15organization or business that is licensed by the Department of
16Agriculture to transport cannabis or cannabis-infused product
17on behalf of a cannabis business establishment or a community
18college licensed under the Community College Cannabis
19Vocational Training Pilot Program.
20    "Transporting organization agent" means a principal
21officer, board member, employee, or agent of a transporting
22organization.
23    "Transporting organization agent identification card"
24means a document issued by the Department of Agriculture that
25identifies a person as a transporting organization agent.
26    "Unit of local government" means any county, city, village,

 

 

SB3469- 98 -LRB101 19661 HLH 69151 b

1or incorporated town.
2    "Vegetative stage" means the stage of cultivation in which
3a cannabis plant is propagated to produce additional cannabis
4plants or reach a sufficient size for production. This includes
5seedlings, clones, mothers, and other immature cannabis plants
6as follows:
7        (1) if the cannabis plant is in an area that has not
8    been intentionally deprived of light for a period of time
9    intended to produce flower buds and induce maturation, it
10    has no more than 2 stigmas visible at each internode of the
11    cannabis plant; or
12        (2) any cannabis plant that is cultivated solely for
13    the purpose of propagating clones and is never used to
14    produce cannabis.
15(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
16    (410 ILCS 705/20-50)
17    Sec. 20-50. Cultivator taxes; returns.
18    (a) A tax is imposed upon the privilege of cultivating and
19processing adult use cannabis at the rate of 7% of the gross
20receipts from the sale of cannabis by a cultivator to a
21dispensing organization. The sale of any adult use product that
22contains any amount of cannabis or any derivative thereof is
23subject to the tax under this Section on the full selling price
24of the product. The proceeds from this tax shall be deposited
25into the Cannabis Regulation Fund. This tax shall be paid by

 

 

SB3469- 99 -LRB101 19661 HLH 69151 b

1the cultivator who makes the first sale and is not the
2responsibility of a dispensing organization, qualifying
3patient, or purchaser.
4    (b) In the administration of and compliance with this
5Section, the Department of Revenue and persons who are subject
6to this Section: (i) have the same rights, remedies,
7privileges, immunities, powers, and duties, (ii) are subject to
8the same conditions, restrictions, limitations, penalties, and
9definitions of terms, and (iii) shall employ the same modes of
10procedure as are set forth in the Cannabis Cultivation
11Privilege Tax Law and the Uniform Penalty and Interest Act as
12if those provisions were set forth in this Section.
13    (c) The tax imposed under this Act shall be in addition to
14all other occupation or privilege taxes imposed by the State of
15Illinois or by any municipal corporation or political
16subdivision thereof.
17    (d) Notwithstanding any other provision of law, no special
18district may levy a tax upon the privilege of cultivating and
19processing adult use cannabis.
20(Source: P.A. 101-27, eff. 6-25-19.)
 
21    (410 ILCS 705/60-10)
22    Sec. 60-10. Tax imposed.
23    (a) Beginning September 1, 2019, a tax is imposed upon the
24privilege of cultivating cannabis at the rate of 7% of the
25gross receipts from the first sale of cannabis by a cultivator.

 

 

SB3469- 100 -LRB101 19661 HLH 69151 b

1The sale of any product that contains any amount of cannabis or
2any derivative thereof is subject to the tax under this Section
3on the full selling price of the product. The Department may
4determine the selling price of the cannabis when the seller and
5purchaser are affiliated persons, when the sale and purchase of
6cannabis is not an arm's length transaction, or when cannabis
7is transferred by a craft grower to the craft grower's
8dispensing organization or infuser or processing organization
9and a value is not established for the cannabis. The value
10determined by the Department shall be commensurate with the
11actual price received for products of like quality, character,
12and use in the area. If there are no sales of cannabis of like
13quality, character, and use in the same area, then the
14Department shall establish a reasonable value based on sales of
15products of like quality, character, and use in other areas of
16the State, taking into consideration any other relevant
17factors.
18    (b) The Cannabis Cultivation Privilege Tax imposed under
19this Article is solely the responsibility of the cultivator who
20makes the first sale and is not the responsibility of a
21subsequent purchaser, a dispensing organization, or an
22infuser. Persons subject to the tax imposed under this Article
23may, however, reimburse themselves for their tax liability
24hereunder by separately stating reimbursement for their tax
25liability as an additional charge.
26    (c) The tax imposed under this Article shall be in addition

 

 

SB3469- 101 -LRB101 19661 HLH 69151 b

1to all other occupation, privilege, or excise taxes imposed by
2the State of Illinois or by any unit of local government.
3    (d) Notwithstanding any other provision of law, no special
4district may levy a tax upon the privilege of cultivating
5cannabis.
6(Source: P.A. 101-27, eff. 6-25-19.)
 
7    (410 ILCS 705/65-10)
8    Sec. 65-10. Tax imposed.
9    (a) Beginning January 1, 2020, a tax is imposed upon
10purchasers for the privilege of using cannabis at the following
11rates:
12        (1) Any cannabis, other than a cannabis-infused
13    product, with an adjusted delta-9-tetrahydrocannabinol
14    level at or below 35% shall be taxed at a rate of 10% of the
15    purchase price;
16        (2) Any cannabis, other than a cannabis-infused
17    product, with an adjusted delta-9-tetrahydrocannabinol
18    level above 35% shall be taxed at a rate of 25% of the
19    purchase price; and
20        (3) A cannabis-infused product shall be taxed at a rate
21    of 20% of the purchase price.
22    (b) The purchase of any product that contains any amount of
23cannabis or any derivative thereof is subject to the tax under
24subsection (a) of this Section on the full purchase price of
25the product.

 

 

SB3469- 102 -LRB101 19661 HLH 69151 b

1    (c) The tax imposed under this Section is not imposed on
2cannabis that is subject to tax under the Compassionate Use of
3Medical Cannabis Program Act. The tax imposed by this Section
4is not imposed with respect to any transaction in interstate
5commerce, to the extent the transaction may not, under the
6Constitution and statutes of the United States, be made the
7subject of taxation by this State.
8    (d) The tax imposed under this Article shall be in addition
9to all other occupation, privilege, or excise taxes imposed by
10the State of Illinois or by any municipal corporation or
11political subdivision thereof.
12    (e) The tax imposed under this Article shall not be imposed
13on any purchase by a purchaser if the cannabis retailer is
14prohibited by federal or State Constitution, treaty,
15convention, statute, or court decision from collecting the tax
16from the purchaser.
17    (f) Notwithstanding any other provision of law, no special
18district may levy a tax upon purchasers for the privilege of
19using cannabis.
20(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.