SB3743 103RD GENERAL ASSEMBLY

LRB103 38521 AWJ 68657 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3743

Introduced 2/9/2024, by Sen. Linda Holmes

SYNOPSIS AS INTRODUCED:

70 ILCS 805/13.9 new
30 ILCS 105/5.1015 new

Amends the Downstate Forest Preserve District Act. Allows the board of a forest preserve district to establish a special forest preserve district retailers' occupation tax and service occupation tax after referendum of the voters. Allows the tax to used exclusively for general purposes, including education, outdoor recreation, maintenance, operations, public safety at the forest preserves, trails, acquiring and restoring land, and any other lawful purposes or programs determined by the board of that district. Includes referendum language and additional ballot informational language. Incorporates provisions from the Retailers' Occupation Tax Act to implement the tax. Amends the State Finance Act to create the Special Forest Preserve Retailers' and Service Occupation Tax Fund. Effective immediately.

A BILL FOR

AN ACT concerning local government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Downstate Forest Preserve District Act is amended by adding Section 13.9 as follows:

(70 ILCS 805/13.9 new)

Sec. 13.9. Special forest preserve districts retailers' and service occupation tax.

(a) The board of any district may impose a tax upon all persons engaged in the business of selling tangible personal property, other than personal property titled or registered with an agency of this State's government, at retail in the district on the gross receipts from the sales made in the course of business to provide revenue to be used for general forest district purposes, including education, outdoor recreation, maintenance, operations, public safety at the forest preserves, trails, acquiring and restoring land, and any other lawful purposes or programs determined by the board of that district, except as otherwise provided in this Section, if a proposition for the tax has been submitted to the electors of that district and approved by a majority of those voting on the question. If imposed, this tax shall be imposed only in 0.25% increments. By resolution, the board may order the proposition to be submitted at any election.

For a tax imposed for forest preserve purposes for expenditures authorized under this Act, the board must publish notice of the operational, capital, or master plan of the district, and must make the plan publicly available prior to approval of the ordinance or resolution imposing the tax.

If a tax is imposed for specific operational needs, capital projects, or public facilities, then the name of the project may be included in the proposition at the discretion of the board as determined in the enabling resolution. For example, the "XXX Regional Trail," the "YYY Forest Preserve or Multi-Use Facility," or the "ZZZ Natural Area Acquisition or Restoration Project".

The county clerk shall certify the question to the proper election authority, who shall submit the proposition at an election in accordance with the general election law.

The proposition for forest preserve purposes shall be in substantially the following form:

"To pay for (forest preserve purposes), shall (name of district) be authorized to impose an increase on its share of local sales taxes by (insert rate)?"

The following additional information shall appear on the ballot below the question:

"This would mean that a consumer would pay an additional (insert amount) in sales tax for every $100 of tangible personal property bought at retail."

The board may also vote to establish a sunset provision at which time the additional sales tax would cease being collected, if not terminated earlier by a vote of the board. If the board votes to include a sunset provision, the proposition for forest preserve purposes shall be in substantially the following form:

"To pay for (forest preserve purposes), shall (name of district) be authorized to impose an increase on its share of local sales taxes by (insert rate) for a period not to exceed (insert number of years)?"

The following additional information shall appear on the ballot below the question:

"This would mean that a consumer would pay an additional (insert amount) in sales tax for every $100 of tangible personal property bought at retail. If imposed, the additional tax would cease being collected at the end of (insert number of years), if not terminated earlier by a vote of the (name of district) board."

Votes shall be recorded as "Yes" or "No".

If a majority of the electors voting on the proposition vote in favor of it, the district may impose the tax.

A district may not submit more than one proposition authorized by this Section to the electors at any one time.

The board shall impose the tax upon all persons engaged in the business of selling tangible personal property, other than personal property titled or registered with an agency of this State's government, at retail in the district on the gross receipts from the sales made in the course of business.

(b) The tax imposed by the board under this Section and all civil penalties that may be assessed as an incident of the tax shall be collected and enforced by the Department of Revenue. The certificate of registration that is issued by the Department to a retailer under the Retailers' Occupation Tax Act shall permit the retailer to engage in a business that is taxable without registering separately with the Department under an ordinance or resolution under this Section. The Department has full power to administer and enforce this Section, to collect all taxes and penalties due under this Section, to dispose of taxes and penalties so collected in the manner provided in this Section, and to determine all rights to credit memoranda arising on account of the erroneous payment of a tax or penalty under this Section. In the administration of and compliance with this Section, the Department and persons who are subject to this Section shall (i) have the same rights, remedies, privileges, immunities, powers, and duties; (ii) be subject to the same conditions, restrictions, limitations, penalties, and definitions of terms; and (iii) employ the same modes of procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions contained in those Sections other than the State rate of tax), 2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except provisions relating to transaction returns and quarter monthly payments, and 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) and Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act and the Uniform Penalty and Interest Act as if those provisions were set forth in this Section.

Persons subject to any tax imposed under the authority granted in this Section may reimburse themselves for their sellers' tax liability by separately stating the tax as an additional charge. The charge may be stated in combination, in a single amount, with State tax which sellers are required to collect under the Use Tax Act, pursuant to such bracketed schedules as the Department may prescribe.

If the Department determines that a refund should be made under this Section to a claimant instead of issuing a credit memorandum, then 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 the Special Forest Preserve Retailers' and Service Occupation Tax Fund.

(c) If a tax has been imposed under subsection (a), then a service occupation tax shall also be imposed at the same rate upon all persons in the district engaged in the business of making sales of service, who, as an incident to making those sales of service, transfer tangible personal property within the district as an incident to a sale of service. The tax imposed under this Section and all civil penalties that may be assessed as an incident thereof shall be collected and enforced by the Department of Revenue. The Department has full power to administer and enforce this Section; 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 Section, the Department and persons who are subject to this paragraph shall (i) have the same rights, remedies, privileges, immunities, powers, and duties; (ii) be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions, and definitions of terms; and (iii) employ the same modes of procedure as are prescribed in Sections 2 (except that the reference to State in the definition of supplier maintaining a place of business in this State shall mean the district), 2a, 2b, 2c, 3 through 3-50 (in respect to all provisions therein other than the State rate of tax), 4 (except that the reference to the State shall be to the district), 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 district), 9 (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 that are subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 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 district), Sections 15, 16, 17, 18, 19 and 20 of the Service Occupation Tax Act and 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 Section may reimburse themselves for their serviceman's tax liability 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, in accordance with such bracket schedules as the Department may prescribe.

If the Department determines that a refund should be made under this subsection to a claimant instead of issuing a credit memorandum, then 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 the Special Forest Preserve Retailers' and Service Occupation Tax Fund.

Nothing in this subsection shall be construed to authorize the board to impose a tax upon the privilege of engaging in any business that under the Constitution of the United States may not be made the subject of taxation by the State.

(d) Except as otherwise provided in this paragraph, the Department shall immediately pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected under this Section to be deposited into the Special Forest Preserve Retailers' and Service Occupation Tax Fund, a special fund that is created in the State treasury that and the moneys in the fund shall be disbursed as provided in this Section.

As soon as possible after the first day of each month and 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. The Department shall make this certification only if the district imposes a tax on real property as provided in the definition of "local sales taxes" under the Innovation Development and Economy Act.

After the monthly transfer to the STAR Bonds Revenue Fund, on or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the disbursement of the stated sums of money to the district from which retailers have paid taxes or penalties to the Department during the second preceding calendar month. The amount to be paid to the district shall be the amount 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 (i) an amount equal to the amount of refunds made during the second preceding calendar month by the Department on behalf of the district; (ii) 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 District; (iii) any amounts that are transferred to the STAR Bonds Revenue Fund, and (iv) 1.5% of the remainder, which the Department shall transfer into the Tax Compliance and Administration Fund. The Department, at the time of each monthly disbursement to the district, 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 disbursement certification to the District and the Tax Compliance and Administration Fund provided for in this Section to be given to the Comptroller by the Department, the Comptroller shall cause the orders to be drawn for the respective amounts in accordance with directions contained in the certification.

(e) For the purpose of determining whether a tax authorized under this Section is applicable, a retail sale by a producer of coal or another 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 another 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 United States Constitution as a sale in interstate or foreign commerce.

(f) Nothing in this Section shall be construed to authorize the board to impose a tax upon the privilege of engaging in any business that under the Constitution of the United States may not be made the subject of taxation by this State.

(g) An ordinance imposing a tax under this Section shall be certified by the board and filed with the Department of Revenue either (i) after the first day of October but on or before the first day of April, whereupon the Department shall proceed to administer and enforce the tax as of the first day of July next following the filing; or (ii) after the first day of April but on or before the first day of October, whereupon the Department shall proceed to administer and enforce the tax as of the first day of January next following the filing.

(h) When certifying the amount of a monthly disbursement to the district under this Section, the Department shall increase or decrease the amounts by an amount necessary to offset any misallocation of previous disbursements. The offset amount shall be the amount erroneously disbursed within the previous 6 months from the time a misallocation is discovered.

Section 10. The State Finance Act is amended by adding Section 5.1015 as follows:

(30 ILCS 105/5.1015 new)

Sec. 5.1015. The Special Forest Preserve Retailers' and Service Occupation Tax Fund.

Section 99. Effective date. This Act takes effect upon becoming law.