Section 690.101  Nature of the Salem Civic Center Retailers' Occupation Tax

a)         Authority to Impose Tax

1)         Pursuant to the Salem Civic Center Use and Occupation Tax Law [70 ILCS 200/245-12], the Salem Civic Center Authority ("Authority") shall be authorized to impose a retailers' occupation tax upon all persons engaged in the business of selling tangible personal property at retail in the metropolitan area, at the rate approved by referendum, on the gross receipts from the sales made in the course of such business within the metropolitan area.  [70 ILCS 200/245-12(b)]  If imposed, the rate shall be in one-quarter percent (¼%) increments not to exceed 1%.  [70 ILCS 200/245-12(a)]

2)         Beginning January 1, 2021, this tax is not imposed on sales of aviation fuel 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 Authority.  [70 ILCS 200/245-12(b)]  "Aviation fuel" means jet fuel and aviation gasoline.  [35 ILCS 120/3] 

3)         The tax imposed under this Section and all civil that may be assessed as an incident thereof shall be collected and enforced by the Department of Revenue.  [70 ILCS 200/245-12(b)]

b)         Passing on the Tax

The legal incidence of the Salem Civic Center Retailers' Occupation Tax is on the seller.  Nevertheless, the General Assembly has authorized persons subject to this tax to reimburse themselves for their seller's tax liability by separately stating the tax as an additional charge, which may be stated in combination, in a single amount, with State taxes that sellers are required to collect under the Use Tax Act [35 ILCS 105], in accordance with such bracket schedules as the Department has prescribed.  [70 ILCS 200/245-12(b)]  (See 86 Ill. Adm. Code 150.Table A).

c)         Exclusion from "Gross Receipts"

Any amount added to the selling price of tangible personal property by the seller because of the Salem Civic Center Retailers' Occupation Tax, the Retailers' Occupation Tax, the Use Tax, or any other local occupation tax administered by the Department, and collected from the purchaser, shall not be regarded as a part of the seller's gross receipts that are subject to the Salem Civic Center Retailers' Occupation Tax.

(Source:  Amended at 49 Ill. Reg. 3294, effective February 26, 2025)