(70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
Sec. 4. Taxes. (a) The board of commissioners of any county water commission
may, by ordinance, impose throughout the territory of the commission any or
all of the taxes provided in this Section for its corporate purposes.
However, no county water commission may impose any such tax unless the
commission certifies the proposition of imposing the tax to the proper
election officials, who shall submit the proposition to the voters residing
in the territory at an election in accordance with the general election
law, and the proposition has been approved by a majority of those voting on
the proposition.
The proposition shall be in the form provided in Section 5 or shall be
substantially in the following form:
--------------------------------------------------------------------------------------------------------------------- Shall the (insert corporatename of county water commission) YESimpose (state type of tax or ------------------------------------------------------------------------taxes to be imposed) at the NOrate of 1/4%?---------------------------------------------------------------------------------------------------------------------
Taxes imposed under this Section and civil penalties imposed
incident thereto shall be collected and enforced by the State Department of
Revenue. The Department shall have the power to administer and enforce the
taxes and to determine all rights for refunds for erroneous payments of
the taxes.
(b) The board of commissioners may impose a County Water Commission
Retailers' Occupation Tax upon all persons engaged in the business of
selling tangible personal property at retail in the territory of the
commission at a rate of 1/4% of the gross receipts from the sales made in
the course of such business within the territory. 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 District. The tax imposed under
this paragraph and all civil penalties that may be assessed as an incident
thereof shall be collected and enforced by the State Department of Revenue.
The Department shall have full power to administer and enforce this
paragraph; to collect all taxes and penalties due hereunder; to dispose of
taxes and penalties so collected in the manner hereinafter provided; and to
determine all rights to credit memoranda arising on account of the
erroneous payment of tax or penalty hereunder. In the administration of,
and compliance with, this paragraph, the Department and persons who are
subject to this paragraph shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions and
definitions of terms, and employ the same modes of procedure, as are
prescribed in Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
(in respect to all provisions therein other than the State rate of tax
except that tangible personal property taxed at the 1% rate under the Retailers' Occupation Tax Act
shall not be subject to tax hereunder), 2c, 3 (except as to the disposition
of taxes and penalties collected, and except that the retailer's discount is not allowed for taxes paid on aviation fuel sold on or after December 1, 2019 and through December 31, 2020), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, and 13 of
the Retailers' Occupation Tax Act and Section 3-7 of the Uniform Penalty
and Interest Act, as fully as if those provisions were set forth herein.
Persons subject to any tax imposed under the authority granted in this
paragraph may reimburse themselves for their seller's tax liability
hereunder by separately stating the tax as an additional charge, which
charge may be stated in combination, in a single amount, with State taxes
that sellers are required to collect under the Use Tax Act and under
subsection (e) of Section 4.03 of the Regional Transportation Authority
Act, in accordance with such bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be made under this
paragraph to a claimant instead of issuing a credit memorandum, the Department
shall notify the State Comptroller, who shall cause the warrant to be drawn
for the amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State Treasurer out
of a county water commission tax fund established under subsection (g) of
this Section.
For the purpose of determining whether a tax authorized under this paragraph
is applicable, a retail sale by a producer of coal or other mineral mined
in Illinois is a sale at retail at the place where the coal or other mineral
mined in Illinois is extracted from the earth. This paragraph does not
apply to coal or other mineral when it is delivered or shipped by the seller
to the purchaser at a point outside Illinois so that the sale is exempt
under the Federal Constitution as a sale in interstate or foreign commerce.
If a tax is imposed under this subsection (b), a tax shall also be
imposed under subsections (c) and (d) of this Section.
No tax shall be imposed or collected under this subsection on the sale of a motor vehicle in this State to a resident of another state if that motor vehicle will not be titled in this State.
Nothing in this paragraph shall be construed to authorize a county water
commission to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may not be made
the subject of taxation by this State.
(c) If a tax has been imposed under subsection (b), a
County Water Commission Service Occupation
Tax shall
also be imposed upon all persons engaged, in the territory of the
commission, in the business of making sales of service, who, as an
incident to making the sales of service, transfer tangible personal
property within the territory. The tax rate shall be 1/4% of the selling
price of tangible personal property so transferred within the territory.
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 District. The tax imposed under this paragraph and all civil penalties that may be
assessed as an incident thereof shall be collected and enforced by the
State Department of Revenue. The Department shall have full power to
administer and enforce this paragraph; to collect all taxes and penalties
due hereunder; to dispose of taxes and penalties so collected in the manner
hereinafter provided; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty hereunder.
In the administration of, and compliance with, this paragraph, the
Department and persons who are subject to this paragraph shall have the
same rights, remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations, penalties,
exclusions, exemptions and definitions of terms, and employ the same modes
of procedure, as are prescribed in Sections 1a-1, 2 (except that the
reference to State in the definition of supplier maintaining a place of
business in this State shall mean the territory of the commission), 2a, 3
through 3-50 (in respect to all provisions therein other than the State
rate of tax except that tangible personal property taxed at the 1% rate under the Service Occupation Tax Act shall not be subject to tax hereunder), 4 (except that the
reference to the State shall be to the territory of the commission), 5, 7,
8 (except that the jurisdiction to which the tax shall be a debt to the
extent indicated in that Section 8 shall be the commission), 9 (except as
to the disposition of taxes and penalties collected and except that the
returned merchandise credit for this tax may not be taken against any State
tax, and except that the retailer's discount is not allowed for taxes paid on aviation fuel sold on or after December 1, 2019 and through December 31, 2020), 10, 11, 12 (except the reference therein to Section 2b of the
Retailers' Occupation Tax Act), 13 (except that any reference to the State
shall mean the territory of the commission), the first paragraph of Section
15, 15.5, 16, 17, 18, 19, and 20 of the Service Occupation Tax Act as fully
as if those provisions were set forth herein.
Persons subject to any tax imposed under the authority granted in
this paragraph may reimburse themselves for their serviceman's tax liability
hereunder by separately stating the tax as an additional charge, which
charge may be stated in combination, in a single amount, with State tax
that servicemen are authorized to collect under the Service Use Tax Act,
and any tax for which servicemen may be liable under subsection (f) of Section
4.03 of the Regional Transportation Authority Act, in accordance
with such bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be made under this
paragraph to a claimant instead of issuing a credit memorandum, the Department
shall notify the State Comptroller, who shall cause the warrant to be drawn
for the amount specified, and to the person named, in the notification from
the Department. The refund shall be paid by the State Treasurer out of a
county water commission tax fund established under subsection (g) of this
Section.
Nothing in this paragraph shall be construed to authorize a county water
commission to impose a tax upon the privilege of engaging in any business
which under the Constitution of the United States may not be made the
subject of taxation by the State.
(d) If a tax has been imposed under subsection (b), a tax shall
also be imposed upon the privilege of using, in the territory of the
commission, any item of tangible personal property that is purchased
outside the territory at retail from a retailer, and that is titled or
registered with an agency of this State's government, at a rate of 1/4% of
the selling price of the tangible personal property within the territory,
as "selling price" is defined in the Use Tax Act. The tax shall be collected
from persons whose Illinois address for titling or registration purposes
is given as being in the territory. The tax shall be collected by the
Department of Revenue for a county water commission. The tax must be paid
to the State, or an exemption determination must be obtained from the
Department of Revenue, before the title or certificate of registration for
the property may be issued. The tax or proof of exemption may be
transmitted to the Department by way of the State agency with which, or the
State officer with whom, the tangible personal property must be titled or
registered if the Department and the State agency or State officer
determine that this procedure will expedite the processing of applications
for title or registration.
The Department shall have full power to administer and enforce this
paragraph; to collect all taxes, penalties, and interest due hereunder; to
dispose of taxes, penalties, and interest so collected in the manner
hereinafter provided; and to determine all rights to credit memoranda or
refunds arising on account of the erroneous payment of tax, penalty, or
interest hereunder. In the administration of and compliance with this
paragraph, the Department and persons who are subject to this paragraph
shall have the same rights, remedies, privileges, immunities, powers, and
duties, and be subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms and employ the
same modes of procedure, as are prescribed in Sections 2 (except the
definition of "retailer maintaining a place of business in this State"), 3
through 3-80 (except provisions pertaining to the State rate of tax,
and except provisions concerning collection or refunding of the tax by
retailers), 4, 11,
12, 12a, 14, 15, 19 (except the portions pertaining to claims by retailers
and except the last paragraph concerning refunds), 20, 21, and 22 of the Use
Tax Act and Section 3-7 of the Uniform Penalty and Interest Act that are
not inconsistent with this paragraph, as fully as if those provisions were
set forth herein.
Whenever the Department determines that a refund should be made under this
paragraph to a claimant instead of issuing a credit memorandum, the Department
shall notify the State Comptroller, who shall cause the order
to be drawn for the amount specified, and to the person named, in the
notification from the Department. The refund shall be paid by the State
Treasurer out of a county water commission tax fund established
under subsection (g) of this Section.
(e) A certificate of registration issued by the State Department of
Revenue to a retailer under the Retailers' Occupation Tax Act or under the
Service Occupation Tax Act shall permit the registrant to engage in a
business that is taxed under the tax imposed under subsection (b), (c),
or (d) of this Section and no additional registration shall be required under
the tax. A certificate issued under the Use Tax Act or the Service Use Tax
Act shall be applicable with regard to any tax imposed under subsection (c)
of this Section.
(f) Any ordinance imposing or discontinuing any tax under this Section
shall be adopted and a certified copy thereof filed with the Department on
or before June 1, whereupon the Department of Revenue shall proceed to
administer and enforce this Section on behalf of the county water
commission as of September 1 next following the adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing or
discontinuing the tax hereunder shall be adopted and a certified copy
thereof filed with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and enforce this
Section as of the first day of October next following such adoption and
filing. Beginning January 1, 1993, an ordinance or resolution imposing or
discontinuing the tax hereunder shall be adopted and a certified copy
thereof filed with the Department on or before the first day of October,
whereupon the Department shall proceed to administer and enforce this
Section as of the first day of January next following such adoption and filing.
(g) The State Department of Revenue shall, upon collecting any taxes as
provided in this Section, pay the taxes over to the State Treasurer as
trustee for the commission. The taxes shall be held in a trust fund outside
the State Treasury. As soon as possible after the first day of each month, beginning January 1, 2011, upon certification of the Department of Revenue, the Comptroller shall order transferred, and the Treasurer shall transfer, to the STAR Bonds Revenue Fund the local sales tax increment, as defined in the Innovation Development and Economy Act, collected under this Section during the second preceding calendar month for sales within a STAR bond district. After the monthly transfer to the STAR Bonds Revenue Fund, on or before the 25th day of each calendar month, the
State Department of Revenue shall prepare and certify to the Comptroller of
the State of Illinois the amount to be paid to the commission, which shall be
the amount (not including credit memoranda) collected under this Section during the second preceding calendar month by the Department plus an amount the Department determines is necessary to offset any amounts that were erroneously paid to a different taxing body, and not including any amount equal to the amount of refunds made during the second preceding calendar month by the Department on behalf of the commission, and not including any amount that the Department determines is necessary to offset any amounts that were payable to a different taxing body but were erroneously paid to the commission, and less any amounts that are transferred to the STAR Bonds Revenue Fund, less 1.5% of the remainder, which shall be transferred into the Tax Compliance and Administration Fund. The Department, at the time of each monthly disbursement to the commission, shall prepare and certify to the State Comptroller the amount to be transferred into the Tax Compliance and Administration Fund under this subsection. Within 10 days after receipt by
the Comptroller of the certification of the amount to be paid to the
commission and the Tax Compliance and Administration Fund, the Comptroller shall cause an order to be drawn for the payment
for the amount in accordance with the direction in the certification.
(h) Beginning June 1, 2016, any tax imposed pursuant to this Section may no longer be imposed or collected, unless a continuation of the tax is approved by the voters at a referendum as set forth in this Section.(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19.)
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