97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1507

 

Introduced , by Rep. Roger L. Eddy

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 350/15  from Ch. 17, par. 6915
55 ILCS 5/5-1006.7
105 ILCS 5/10-22.36  from Ch. 122, par. 10-22.36

    Amends the Counties Code. Requires the imposition of a school facility occupation tax in a county if the electors of the county have approved a proposition for the tax. Provides that a school facility occupation tax imposed by approval of the electors may be reduced or discontinued if the electors have voted to reduce or discontinue the tax. Provides that the State will not limit or alter rights, powers, and duties so as to impair the rights and remedies of holders of bonds secured by proceeds of a school facility occupation tax. Amends the Local Government Debt Reform Act. Provides that a backdoor referendum is not required for alternate bonds if at least 90% of the revenue source pledged to the payment of the alternate bonds is expected to be obtained from a school facility occupation tax. Amends the School Code. Provides that a referendum shall not be required if the purchase, construction, or building of a school building is paid from funds received from the County School Facility Occupation Tax Law or from the proceeds of bonds secured by revenues obtained from that Law. Effective immediately.


LRB097 06998 PJG 47091 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1507LRB097 06998 PJG 47091 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 Local Government Debt Reform Act is amended
5by changing Section 15 as follows:
 
6    (30 ILCS 350/15)  (from Ch. 17, par. 6915)
7    Sec. 15. Double-barrelled bonds. Whenever revenue bonds
8have been authorized to be issued pursuant to applicable law or
9whenever there exists for a governmental unit a revenue source,
10the procedures set forth in this Section may be used by a
11governing body. General obligation bonds may be issued in lieu
12of such revenue bonds as authorized, and general obligation
13bonds may be issued payable from any revenue source. Such
14general obligation bonds may be referred to as "alternate
15bonds". Alternate bonds may be issued without any referendum or
16backdoor referendum except as provided in this Section, upon
17the terms provided in Section 10 of this Act without reference
18to other provisions of law, but only upon the conditions
19provided in this Section. Alternate bonds shall not be regarded
20as or included in any computation of indebtedness for the
21purpose of any statutory provision or limitation except as
22expressly provided in this Section.
23    Such conditions are:

 

 

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1    (a) Alternate bonds shall be issued for a lawful corporate
2purpose. If issued in lieu of revenue bonds, alternate bonds
3shall be issued for the purposes for which such revenue bonds
4shall have been authorized. If issued payable from a revenue
5source in the manner hereinafter provided, which revenue source
6is limited in its purposes or applications, then the alternate
7bonds shall be issued only for such limited purposes or
8applications. Alternate bonds may be issued payable from either
9enterprise revenues or revenue sources, or both.
10    (b) Alternate bonds shall be subject to backdoor
11referendum. The provisions of Section 5 of this Act shall apply
12to such backdoor referendum, together with the provisions
13hereof. The authorizing ordinance shall be published in a
14newspaper of general circulation in the governmental unit.
15Along with or as part of the authorizing ordinance, there shall
16be published a notice of (1) the specific number of voters
17required to sign a petition requesting that the issuance of the
18alternate bonds be submitted to referendum, (2) the time when
19such petition must be filed, (3) the date of the prospective
20referendum, and (4), with respect to authorizing ordinances
21adopted on or after January 1, 1991, a statement that
22identifies any revenue source that will be used to pay debt
23service on the alternate bonds. The clerk or secretary of the
24governmental unit shall make a petition form available to
25anyone requesting one. If no petition is filed with the clerk
26or secretary within 30 days of publication of the authorizing

 

 

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1ordinance and notice, the alternate bonds shall be authorized
2to be issued. But if within this 30 days period, a petition is
3filed with such clerk or secretary signed by electors numbering
4the greater of (i) 7.5% of the registered voters in the
5governmental unit or (ii) 200 of those registered voters or 15%
6of those registered voters, whichever is less, asking that the
7issuance of such alternate bonds be submitted to referendum,
8the clerk or secretary shall certify such question for
9submission at an election held in accordance with the general
10election law. The question on the ballot shall include a
11statement of any revenue source that will be used to pay debt
12service on the alternate bonds. The alternate bonds shall be
13authorized to be issued if a majority of the votes cast on the
14question at such election are in favor thereof provided that
15notice of the bond referendum, if held before July 1, 1999, has
16been given in accordance with the provisions of Section 12-5 of
17the Election Code in effect at the time of the bond referendum,
18at least 10 and not more than 45 days before the date of the
19election, notwithstanding the time for publication otherwise
20imposed by Section 12-5. Notices required in connection with
21the submission of public questions on or after July 1, 1999
22shall be as set forth in Section 12-5 of the Election Code.
23Backdoor referendum proceedings for bonds and alternate bonds
24to be issued in lieu of such bonds may be conducted at the same
25time. Notwithstanding any other provision of this Section, a
26backdoor referendum is not required if at least 90% of the

 

 

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1revenue source pledged to the payment of the alternate bonds as
2determined by the audit or feasibility report is expected to be
3obtained from the County School Facility Occupation Tax Law
4under Section 5-1006.7 of the Counties Code.
5    (c) To the extent payable from enterprise revenues, such
6revenues shall have been determined by the governing body to be
7sufficient to provide for or pay in each year to final maturity
8of such alternate bonds all of the following: (1) costs of
9operation and maintenance of the utility or enterprise, but not
10including depreciation, (2) debt service on all outstanding
11revenue bonds payable from such enterprise revenues, (3) all
12amounts required to meet any fund or account requirements with
13respect to such outstanding revenue bonds, (4) other
14contractual or tort liability obligations, if any, payable from
15such enterprise revenues, and (5) in each year, an amount not
16less than 1.25 times debt service of all (i) alternate bonds
17payable from such enterprise revenues previously issued and
18outstanding and (ii) alternate bonds proposed to be issued. To
19the extent payable from one or more revenue sources, such
20sources shall have been determined by the governing body to
21provide in each year, an amount not less than 1.25 times debt
22service of all alternate bonds payable from such revenue
23sources previously issued and outstanding and alternate bonds
24proposed to be issued. The 1.25 figure in the preceding
25sentence shall be reduced to 1.10 if the revenue source is a
26governmental revenue source. The conditions enumerated in this

 

 

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1subsection (c) need not be met for that amount of debt service
2provided for by the setting aside of proceeds of bonds or other
3moneys at the time of the delivery of such bonds.
4Notwithstanding any other provision of this Section, a backdoor
5referendum is not required if the proceeds backing the debt are
6realized from revenues obtained from the County School Facility
7Occupation Tax Law under Section 5-1006.7 of the Counties Code.
8    (c-1) In the case of alternate bonds issued as variable
9rate bonds (including refunding bonds), debt service shall be
10projected based on the rate for the most recent date shown in
11the 20 G.O. Bond Index of average municipal bond yields as
12published in the most recent edition of The Bond Buyer
13published in New York, New York (or any successor publication
14or index, or if such publication or index is no longer
15published, then any index of long-term municipal tax-exempt
16bond yields selected by the governmental unit), as of the date
17of determination referred to in subsection (c) of this Section.
18Any interest or fees that may be payable to the provider of a
19letter of credit, line of credit, surety bond, bond insurance,
20or other credit enhancement relating to such alternate bonds
21and any fees that may be payable to any remarketing agent need
22not be taken into account for purposes of such projection. If
23the governmental unit enters into an agreement in connection
24with such alternate bonds at the time of issuance thereof
25pursuant to which the governmental unit agrees for a specified
26period of time to pay an amount calculated at an agreed-upon

 

 

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1rate or index based on a notional amount and the other party
2agrees to pay the governmental unit an amount calculated at an
3agreed-upon rate or index based on such notional amount,
4interest shall be projected for such specified period of time
5on the basis of the agreed-upon rate payable by the
6governmental unit.
7    (d) The determination of the sufficiency of enterprise
8revenues or a revenue source, as applicable, shall be supported
9by reference to the most recent audit of the governmental unit,
10which shall be for a fiscal year ending not earlier than 18
11months previous to the time of issuance of the alternate bonds.
12If such audit does not adequately show such enterprise revenues
13or revenue source, as applicable, or if such enterprise
14revenues or revenue source, as applicable, are shown to be
15insufficient, then the determination of sufficiency shall be
16supported by the report of an independent accountant or
17feasibility analyst, the latter having a national reputation
18for expertise in such matters, demonstrating the sufficiency of
19such revenues and explaining, if appropriate, by what means the
20revenues will be greater than as shown in the audit. Whenever
21such sufficiency is demonstrated by reference to a schedule of
22higher rates or charges for enterprise revenues or a higher tax
23imposition for a revenue source, such higher rates, charges or
24taxes shall have been properly imposed by an ordinance adopted
25prior to the time of delivery of alternate bonds. The reference
26to and acceptance of an audit or report, as the case may be,

 

 

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1and the determination of the governing body as to sufficiency
2of enterprise revenues or a revenue source shall be conclusive
3evidence that the conditions of this Section have been met and
4that the alternate bonds are valid.
5    (e) The enterprise revenues or revenue source, as
6applicable, shall be in fact pledged to the payment of the
7alternate bonds; and the governing body shall covenant, to the
8extent it is empowered to do so, to provide for, collect and
9apply such enterprise revenues or revenue source, as
10applicable, to the payment of the alternate bonds and the
11provision of not less than an additional .25 (or .10 for
12governmental revenue sources) times debt service. The pledge
13and establishment of rates or charges for enterprise revenues,
14or the imposition of taxes in a given rate or amount, as
15provided in this Section for alternate bonds, shall constitute
16a continuing obligation of the governmental unit with respect
17to such establishment or imposition and a continuing
18appropriation of the amounts received. All covenants relating
19to alternate bonds and the conditions and obligations imposed
20by this Section are enforceable by any bondholder of alternate
21bonds affected, any taxpayer of the governmental unit, and the
22People of the State of Illinois acting through the Attorney
23General or any designee, and in the event that any such action
24results in an order finding that the governmental unit has not
25properly set rates or charges or imposed taxes to the extent it
26is empowered to do so or collected and applied enterprise

 

 

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1revenues or any revenue source, as applicable, as required by
2this Act, the plaintiff in any such action shall be awarded
3reasonable attorney's fees. The intent is that such enterprise
4revenues or revenue source, as applicable, shall be sufficient
5and shall be applied to the payment of debt service on such
6alternate bonds so that taxes need not be levied, or if levied
7need not be extended, for such payment. Nothing in this Section
8shall inhibit or restrict the authority of a governing body to
9determine the lien priority of any bonds, including alternate
10bonds, which may be issued with respect to any enterprise
11revenues or revenue source.
12    In the event that alternate bonds shall have been issued
13and taxes, other than a designated revenue source, shall have
14been extended pursuant to the general obligation, full faith
15and credit promise supporting such alternate bonds, then the
16amount of such alternate bonds then outstanding shall be
17included in the computation of indebtedness of the governmental
18unit for purposes of all statutory provisions or limitations
19until such time as an audit of the governmental unit shall show
20that the alternate bonds have been paid from the enterprise
21revenues or revenue source, as applicable, pledged thereto for
22a complete fiscal year.
23    Alternate bonds may be issued to refund or advance refund
24alternate bonds without meeting any of the conditions set forth
25in this Section, except that the term of the refunding bonds
26shall not be longer than the term of the refunded bonds and

 

 

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1that the debt service payable in any year on the refunding
2bonds shall not exceed the debt service payable in such year on
3the refunded bonds.
4    Once issued, alternate bonds shall be and forever remain
5until paid or defeased the general obligation of the
6governmental unit, for the payment of which its full faith and
7credit are pledged, and shall be payable from the levy of taxes
8as is provided in this Act for general obligation bonds.
9    The changes made by this amendatory Act of 1990 do not
10affect the validity of bonds authorized before September 1,
111990.
12(Source: P.A. 95-675, eff. 10-11-07.)
 
13    Section 10. The Counties Code is amended by changing
14Section 5-1006.7 as follows:
 
15    (55 ILCS 5/5-1006.7)
16    Sec. 5-1006.7. School facility occupation taxes.
17    (a) A tax shall be imposed in any county The county board
18of any county may impose a tax upon all persons engaged in the
19business of selling tangible personal property, other than
20personal property titled or registered with an agency of this
21State's government, at retail in the county on the gross
22receipts from the sales made in the course of business to
23provide revenue to be used exclusively for school facility
24purposes if a proposition for the tax has been submitted to the

 

 

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1electors of that county and approved by a majority of those
2voting on the question as provided in subsection (c). The tax
3under this Section shall may be imposed only in one-quarter
4percent increments and may not exceed 1%.
5    This additional tax may not be imposed on the sale of food
6for human consumption that is to be consumed off the premises
7where it is sold (other than alcoholic beverages, soft drinks,
8and food that has been prepared for immediate consumption) and
9prescription and non-prescription medicines, drugs, medical
10appliances and insulin, urine testing materials, syringes and
11needles used by diabetics. The Department of Revenue has full
12power to administer and enforce this subsection, to collect all
13taxes and penalties due under this subsection, to dispose of
14taxes and penalties so collected in the manner provided in this
15subsection, and to determine all rights to credit memoranda
16arising on account of the erroneous payment of a tax or penalty
17under this subsection. The Department shall deposit all taxes
18and penalties collected under this subsection into a special
19fund created for that purpose.
20    In the administration of and compliance with this
21subsection, the Department and persons who are subject to this
22subsection (i) have the same rights, remedies, privileges,
23immunities, powers, and duties, (ii) are subject to the same
24conditions, restrictions, limitations, penalties, and
25definitions of terms, and (iii) shall employ the same modes of
26procedure as are set forth in Sections 1 through 1o, 2 through

 

 

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12-70 (in respect to all provisions contained in those Sections
2other than the State rate of tax), 2a through 2h, 3 (except as
3to the disposition of taxes and penalties collected), 4, 5, 5a,
45b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8,
59, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
6and all provisions of the Uniform Penalty and Interest Act as
7if those provisions were set forth in this subsection.
8    The certificate of registration that is issued by the
9Department to a retailer under the Retailers' Occupation Tax
10Act permits the retailer to engage in a business that is
11taxable without registering separately with the Department
12under an ordinance or resolution under this subsection.
13    Persons subject to any tax imposed under the authority
14granted in this subsection may reimburse themselves for their
15seller's tax liability by separately stating that tax as an
16additional charge, which may be stated in combination, in a
17single amount, with State tax that sellers are required to
18collect under the Use Tax Act, pursuant to any bracketed
19schedules set forth by the Department.
20    (b) If a tax has been imposed under subsection (a), then a
21service occupation tax must also be imposed at the same rate
22upon all persons engaged, in the county, in the business of
23making sales of service, who, as an incident to making those
24sales of service, transfer tangible personal property within
25the county as an incident to a sale of service.
26    This tax may not be imposed on sales of food for human

 

 

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1consumption that is to be consumed off the premises where it is
2sold (other than alcoholic beverages, soft drinks, and food
3prepared for immediate consumption) and prescription and
4non-prescription medicines, drugs, medical appliances and
5insulin, urine testing materials, syringes, and needles used by
6diabetics.
7    The tax imposed under this subsection and all civil
8penalties that may be assessed as an incident thereof shall be
9collected and enforced by the Department and deposited into a
10special fund created for that purpose. The Department has full
11power to administer and enforce this subsection, to collect all
12taxes and penalties due under this subsection, to dispose of
13taxes and penalties so collected in the manner provided in this
14subsection, and to determine all rights to credit memoranda
15arising on account of the erroneous payment of a tax or penalty
16under this subsection.
17    In the administration of and compliance with this
18subsection, the Department and persons who are subject to this
19subsection shall (i) have the same rights, remedies,
20privileges, immunities, powers and duties, (ii) be subject to
21the same conditions, restrictions, limitations, penalties and
22definition of terms, and (iii) employ the same modes of
23procedure as are set forth in Sections 2 (except that that
24reference to State in the definition of supplier maintaining a
25place of business in this State means the county), 2a through
262d, 3 through 3-50 (in respect to all provisions contained in

 

 

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1those Sections other than the State rate of tax), 4 (except
2that the reference to the State shall be to the county), 5, 7,
38 (except that the jurisdiction to which the tax is a debt to
4the extent indicated in that Section 8 is the county), 9
5(except as to the disposition of taxes and penalties
6collected), 10, 11, 12 (except the reference therein to Section
72b of the Retailers' Occupation Tax Act), 13 (except that any
8reference to the State means the county), Section 15, 16, 17,
918, 19, and 20 of the Service Occupation Tax Act and all
10provisions of the Uniform Penalty and Interest Act, as fully as
11if those provisions were set forth herein.
12    Persons subject to any tax imposed under the authority
13granted in this subsection may reimburse themselves for their
14serviceman's tax liability by separately stating the tax as an
15additional charge, which may be stated in combination, in a
16single amount, with State tax that servicemen are authorized to
17collect under the Service Use Tax Act, pursuant to any
18bracketed schedules set forth by the Department.
19    (c) The tax under this Section may not be imposed until, by
20ordinance or resolution of the county board, the question of
21imposing the tax has been submitted to the electors of the
22county at a regular election and approved by a majority of the
23electors voting on the question. Upon receipt of a resolution
24by the county board or a resolution or resolutions by school
25district boards that represent more than 50% at least 51% of
26the student enrollment within the county, the regional

 

 

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1superintendent of schools of the county or the county board
2must certify the question to the proper election authority for
3submission to the electors of the county at the next regular
4election at which the question lawfully may be submitted to the
5electors, all in accordance with the Election Code.
6    The election authority must submit the question in
7substantially the following form:
8        Shall (name of county) be authorized to impose a
9    retailers' occupation tax and a service occupation tax
10    (commonly referred to as a "sales tax") be imposed in (name
11    of county) at a rate of (insert rate) to be used
12    exclusively for school facility purposes?
13The election authority must record the votes as "Yes" or "No".
14    If a majority of the electors voting on the question vote
15in the affirmative, then the tax shall be imposed at the rate
16set forth in the question the county may, thereafter, impose
17the tax.
18    For the purposes of this subsection (c), "enrollment" means
19the head count of the students residing in the county on the
20last school day of September of each year, which must be
21reported on the Illinois State Board of Education Public School
22Fall Enrollment/Housing Report.
23    (d) The Department shall immediately pay over to the State
24Treasurer, ex officio, as trustee, all taxes and penalties
25collected under this Section to be deposited into the School
26Facility Occupation Tax Fund, which shall be an unappropriated

 

 

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1trust fund held outside the State treasury.
2    On or before the 25th day of each calendar month, the
3Department shall prepare and certify to the Comptroller the
4disbursement of stated sums of money to the regional
5superintendents of schools in counties from which retailers or
6servicemen have paid taxes or penalties to the Department
7during the second preceding calendar month. The amount to be
8paid to each regional superintendent of schools and disbursed
9to him or her in accordance with 3-14.31 of the School Code, is
10equal to the amount (not including credit memoranda) collected
11from the county under this Section during the second preceding
12calendar month by the Department, (i) less 2% of that amount,
13which shall be deposited into the Tax Compliance and
14Administration Fund and shall be used by the Department,
15subject to appropriation, to cover the costs of the Department
16in administering and enforcing the provisions of this Section,
17on behalf of the county, (ii) plus an amount that the
18Department determines is necessary to offset any amounts that
19were erroneously paid to a different taxing body; (iii) less an
20amount equal to the amount of refunds made during the second
21preceding calendar month by the Department on behalf of the
22county; and (iv) less any amount that the Department determines
23is necessary to offset any amounts that were payable to a
24different taxing body but were erroneously paid to the county.
25When certifying the amount of a monthly disbursement to a
26regional superintendent of schools under this Section, the

 

 

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

 

 

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1    (f) Nothing in this Section may be construed to authorize a
2county board to impose a tax to be imposed upon the privilege
3of engaging in any business that under the Constitution of the
4United States may not be made the subject of taxation by this
5State.
6    (g) If a county board imposes a tax under this Section
7before the effective date of this amendatory Act of the 97th
8General Assembly at a rate below the rate set forth in the
9question approved by a majority of electors of that county
10voting on the question, then the county board may, by
11ordinance, increase the rate of the tax up to the rate set
12forth in the question approved by a majority of electors of
13that county voting on the question. If a county board imposes a
14tax under this Section before the effective date of this
15amendatory Act of the 97th General Assembly, then the board
16may, by ordinance, discontinue or reduce the rate of the tax.
17If a tax is otherwise imposed under this Section on or after
18the effective date of this amendatory Act of the 97th General
19Assembly, then the county board may reduce or discontinue the
20tax, but only in accordance with subsection (h-5) of this
21Section. If, however, a school board issues bonds that are
22secured backed by the proceeds of the tax under this Section,
23then the county board may not reduce the tax rate or
24discontinue the tax if that rate reduction or discontinuance
25would adversely affect inhibit the school board's ability to
26pay the principal and interest on those bonds as they become

 

 

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1due. If the county board reduces the tax rate or discontinues
2the tax, then a referendum must be held in accordance with
3subsection (c) of this Section in order to increase the rate of
4the tax or to reimpose the discontinued tax. The State of
5Illinois pledges to and agrees with the holders of bonds
6secured by proceeds of the tax imposed under this Section that
7the State will not limit or alter the rights, powers, and
8duties set forth in this Section so as to impair the terms of
9any contract made by school districts with those holders or in
10any way impair the rights and remedies of those holders until
11the bonds, together with interest thereon, with interest on any
12unpaid installments of interest, and all costs and expenses in
13connection with any action or proceedings by or on behalf of
14such holders, are fully met and discharged.
15    The results of any election that imposes, reduces, or
16discontinues authorizes a proposition to impose a tax under
17this Section must be certified by the election authority, and
18or to change the rate of the tax along with an ordinance
19imposing the tax, or any ordinance that increases or lowers the
20rate or discontinues the tax, must be certified by the county
21clerk and, in each case, filed with the Illinois Department of
22Revenue either (i) on or before the first day of April,
23whereupon the Department shall proceed to administer and
24enforce the tax or change in the rate as of the first day of
25July next following the filing; or (ii) on or before the first
26day of October, whereupon the Department shall proceed to

 

 

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1administer and enforce the tax or change in the rate as of the
2first day of January next following the filing.
3    (h) For purposes of this Section, "school facility
4purposes" means (i) the acquisition, development,
5construction, reconstruction, rehabilitation, improvement,
6financing, architectural planning, and installation of capital
7facilities consisting of buildings, structures, and durable
8equipment and for the acquisition and improvement of real
9property and interest in real property required, or expected to
10be required, in connection with the capital facilities and (ii)
11the payment of bonds or other obligations heretofore or
12hereafter issued, including bonds or other obligations
13heretofore or hereafter issued to refund or to continue to
14refund bonds or other obligations issued, for school facility
15purposes, provided that the taxes levied to pay those bonds are
16abated by the amount of the taxes imposed under this Section
17that are used to pay those bonds. "School-facility purposes"
18also includes fire prevention, safety, energy conservation,
19disabled accessibility, school security, and specified repair
20purposes set forth under Section 17-2.11 of the School Code.
21    (h-5) A county board in a county where a tax has been
22imposed under this Section on or after the effective date of
23this amendatory Act of the 97th General Assembly may, by
24ordinance or resolution, submit to the voters of the county the
25question of reducing or discontinuing the tax. In the ordinance
26or resolution, the county board shall certify the question to

 

 

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1the proper election authority in accordance with the Election
2Code. The election authority must submit the question in
3substantially the following form:
4        "Shall the school facility retailers' occupation tax
5    and service occupation tax (commonly referred to as the
6    "school facility sales tax") currently imposed in (name of
7    county) at a rate of (insert rate) be (reduced to (insert
8    rate))(discontinued)?"
9If a majority of the electors voting on the question vote in
10the affirmative, then, subject to the provisions of subsection
11(g) of this Section, the tax shall be reduced or discontinued
12as set forth in the question.
13    (i) This Section does not apply to Cook County.
14    (j) This Section may be cited as the County School Facility
15Occupation Tax Law.
16(Source: P.A. 95-675, eff. 10-11-07.)
 
17    Section 15. The School Code is amended by changing Section
1810-22.36 as follows:
 
19    (105 ILCS 5/10-22.36)  (from Ch. 122, par. 10-22.36)
20    Sec. 10-22.36. Buildings for school purposes. To build or
21purchase a building for school classroom or instructional
22purposes upon the approval of a majority of the voters upon the
23proposition at a referendum held for such purpose or in
24accordance with Section 17-2.11, 19-3.5, or 19-3.10. The board

 

 

HB1507- 21 -LRB097 06998 PJG 47091 b

1may initiate such referendum by resolution. The board shall
2certify the resolution and proposition to the proper election
3authority for submission in accordance with the general
4election law.
5    The questions of building one or more new buildings for
6school purposes or office facilities, and issuing bonds for the
7purpose of borrowing money to purchase one or more buildings or
8sites for such buildings or office sites, to build one or more
9new buildings for school purposes or office facilities or to
10make additions and improvements to existing school buildings,
11may be combined into one or more propositions on the ballot.
12    Before erecting, or purchasing or remodeling such a
13building the board shall submit the plans and specifications
14respecting heating, ventilating, lighting, seating, water
15supply, toilets and safety against fire to the regional
16superintendent of schools having supervision and control over
17the district, for approval in accordance with Section 2-3.12.
18    Notwithstanding any of the foregoing, no referendum shall
19be required if the purchase, construction, or building of any
20such building is completed (1) occurs while the building is
21being leased by the school district or (2) is paid with with
22the expenditure of (A) funds derived from the sale or
23disposition of other buildings, land, or structures of the
24school district or (B) funds received (i) as a grant under the
25School Construction Law, or (ii) as gifts or donations,
26provided that no funds to purchase, construct, or build

 

 

HB1507- 22 -LRB097 06998 PJG 47091 b

1complete such building, other than lease payments, are derived
2from the district's bonded indebtedness or the tax levy of the
3district, or (iii) from the County School Facility Occupation
4Tax Law under Section 5-1006.7 of the Counties Code.
5    Notwithstanding any of the foregoing, no referendum shall
6be required if the purchase, construction, or building of any
7such building is paid with funds received from the County
8School Facility Occupation Tax Law under Section 5-1006.7 of
9the Counties Code or from the proceeds of bonds or other debt
10obligations secured by revenues obtained from that Law,
11provided that no funds to purchase, construct, or build such
12building are derived from the district's other bonded
13indebtedness or the property tax levy of the district.
14(Source: P.A. 95-675, eff. 10-11-07; 96-517, eff. 8-14-09.)
 
15    Section 97. Severability. The provisions of this Act are
16severable under Section 1.31 of the Statute on Statutes.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.