Section 230.101  Nature of the Home Rule County Service Occupation Tax

 

a)         Authority to Impose Tax

 

1)         Pursuant to Section 5-1007 of the Counties Code [55 ILCS 5], the corporate authorities of a home rule county may impose a tax upon all persons engaged, in such county, in the business of making sales of service at the same rate of tax imposed pursuant to Section 5-1006 of the Counties Code [55 ILCS 5/5-1006] of the selling price of all tangible personal property transferred by such servicemen either in the form of tangible personal property or in the form of real estate.  If imposed, such tax shall only be imposed in ¼% increments.

 

2)         This additional tax may not be imposed on tangible personal property taxed at the 1% rate under the Service Occupation Tax Act [35 ILCS 115].  [55 ILCS 5/5-1007]  For guidance on the types of tangible personal property taxed at the 1% rate, see 86 Ill. Adm. Code 130.310 and 130.311.

 

3)         Beginning December 1, 2019, this tax is not imposed on sales of aviation fuel unless the tax revenue is expended for airport-related purposes.  If the county does not have an airport-related purpose to which it dedicates aviation fuel tax revenue, then aviation fuel is excluded from the tax.  The county must comply with the certification requirements for airport-related purposes under Section 2-22 of the Retailers' Occupation Tax Act [35 ILCS 120].  [55 ILCS 5/5-1007]  "Aviation fuel" means jet fuel and aviation gasoline.  [35 ILCS 115/9]  "Airport-related purposes" has the meaning ascribed in Section 6z-20.2 of the State Finance Act [30 ILCS 105].  This exclusion for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.

 

4)         The tax imposed by a home rule county pursuant to this Section and all civil penalties that may be assessed as an incident thereof shall be collected and enforced by the Department of Revenue.  [55 ILCS 5/5-1007]

 

b)         Passing on the Tax

The legal incidence of the Home Rule County Service Occupation Tax is on the serviceman.  Nevertheless, the General Assembly has authorized persons subject to this tax to reimburse themselves for their serviceman's tax liability by separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax which servicemen are authorized to collect under the Service Use Tax Act [35 ILCS 110], pursuant to such bracket schedules as the Department has prescribed.  [55 ILCS 5/5-1007]  (See 86 Ill. Adm. Code 150.Table A).

 

c)         Exclusion from "Selling Price"

Any amount added by a serviceman to the selling price of tangible personal property as an incident to service because of the Home Rule County Service Occupation Tax, the Service Occupation Tax, the Service Use Tax, or any other local occupation tax administered by the Department, shall not be regarded as a part of the selling price that is subject to the Home Rule County Service Occupation Tax.

 

(Source:  Amended at 49 Ill. Reg. 3207, effective February 26, 2025)

 

Section 230.105  Registration and Returns

 

a)         A serviceman's registration under the Service Occupation Tax Act [35 ILCS 115] or the Retailers' Occupation Tax Act [35 ILCS 120] is sufficient for the purposes of the Home Rule County Service Occupation Tax Law.  No special registration for the Home Rule County Service Occupation Tax is required.

 

b)         The information required for the Home Rule County Service Occupation Tax shall be furnished on the taxpayer's Service Occupation Tax return form.

 

c)         If applicable, aviation fuel tax returns shall be filed in accordance with Section 9 of the Service Occupation Tax Act and 86 Ill. Adm. Code 130.541 except that the retailer's discount is not allowed for taxes paid on aviation fuel that are subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133.  [55 ILCS 5/5-1007]  (See also 86 Ill. Adm. Code 230.101(a)(3)).

 

(Source:  Amended at 49 Ill. Reg. 3207, effective February 26, 2025)

 

Section 230.110  Claims to Recover Erroneously Paid Tax

 

            Claims for Multiple Taxes.

            If a claimant files a claim for refund on a transaction which was subject to State and local taxes administered by the Department, the claim need not be filed separately for each type of tax. A single claim for the total of all applicable taxes will suffice. The claim will be audited, heard, or otherwise processed as a single claim whenever possible. A single credit memorandum will be issued which may be used by the claimant or his authorized assignee to pay State or local tax liability.

 

(Source:  Amended at 15 Ill. Reg. 5796, effective April 9, 1991)

 

Section 230.115  Jurisdictional Questions

 

a)         When used in this Part, "county" includes all territory located within the county, including all territory within cities, villages or incorporated towns, including an incorporated town which has superseded a civil township.

 

b)         If the Illinois Service Occupation Tax on a transaction is being remitted to the Department by the serviceman, the serviceman shall also pay Home Rule County Service Occupation Tax to the Department on the same transaction if such serviceman's place of business is located in a home rule county which has adopted the Home Rule County Service Occupation Tax.  This is true whether the serviceman bought the property in Illinois or outside Illinois.

 

(Source:  Amended at 15 Ill. Reg. 5796,  effective April 9, 1991)

 

Section 230.120  Incorporation of Service Occupation Tax Regulations by Reference

 

To avoid needless repetition, the substance and provisions of all Service Occupation Tax Regulations (86 Ill. Adm. Code 140) which are not incompatible with the Home Rule County Service Occupation Tax Act or any special Regulations that may be promulgated by the Department thereunder, are incorporated herein by reference and made a part hereof.

 

(Source:  Amended at 15 Ill. Reg. 5796, effective April 9, 1991)

 

Section 230.125  Penalties, Interest and Procedures

 

All penalties (both civil and criminal), provisions concerning interest and procedures (such as the making of assessments, the venue and mode of conducting hearings, subpoenas, matters pertaining to judicial review and other procedural subjects), together with statutes of limitation, are the same under the Home Rule County Service Occupation Tax Act as under the Service Occupation Tax Act.

 

(Source:  Amended at 15 Ill. Reg. 5796 effective April 9, 1991)

 

Section 230.130  Effective Date

 

An ordinance or resolution imposing or discontinuing or effecting a change in the rate of a Home Rule County Service Occupation Tax shall either: be adopted and a certified copy filed with the Department on or before the first day of April, whereupon the Department shall proceed to administer and enforce the ordinance or resolution as of the first day of July next following such adoption and filing; or be adopted and a certified copy filed with the Department on or before the first day of October, whereupon the Department shall proceed to administer and enforce the ordinance or resolution as of the first day of January next following such adoption and filing.  For this purpose, the date of the sale of service is deemed to be the date of the delivery, to the user, of the tangible personal property which the serviceman retransfers as an incident to service.

 

(Source:  Amended at 24 Ill. Reg. 8108, effective May 26, 2000)