HB2393ham001 104TH GENERAL ASSEMBLY

Rep. Stephanie A. Kifowit

Filed: 4/8/2025

10400HB2393ham001 LRB104 06280 RTM 25069 a

AMENDMENT TO HOUSE BILL 2393

AMENDMENT NO. ______. Amend House Bill 2393 by replacing everything after the enacting clause with the following:

"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 district retailers' and service occupation tax.

(a) As used in this Section, "Department" means the Department of Revenue.

(b) The board of any forest preserve district may impose a tax upon all persons engaged in the business of selling, including leasing, 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 by the forest preserve district in that county for general forest preserve district purposes, including education, outdoor recreation, maintenance, operations, public safety, 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 legal voters of that county and approved by a majority of those voting on the question as provided in subsection (e). If imposed, this tax shall be imposed only in 0.25% increments.

The tax imposed under this subsection may not be imposed on tangible personal property taxed at the 1% rate under the Retailers' Occupation Tax Act or food for human consumption that is to be consumed off the premises where it is sold. The tax imposed under this subsection 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 board.

The board must publish notice of the operational, capital, or master plan of the district, and must make the plan publicly available, before approval of the ordinance or resolution imposing the tax.

The tax imposed by the board under this subsection and all civil penalties that may be assessed as an incident of the tax shall be collected and enforced by the Department. 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 adopted under this subsection. The Department shall administer and enforce this subsection, collect all taxes and penalties due under this subsection, dispose of taxes and penalties so collected in the manner provided in this subsection, and determine all rights to credit memoranda arising on account of the erroneous payment of a tax or penalty under this subsection.

In the administration of and compliance with this subsection, the Department and persons who are subject to this subsection 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, 1j.1, 1j.2, 1k, 1m, 1n, 1o, 1p, 1q, 1r, 1s, 2 through 2-70, 2a, 2b, 2c, 2h, 2i, 2j, 3 (except provisions relating to transaction returns and quarter monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 5m, 5n, 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 subsection.

Persons subject to any tax imposed under this subsection 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 in accordance with the bracketed 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 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 District Retailers' and Service Occupation Tax Fund.

(c) If a tax has been imposed under subsection (b), then a service occupation tax shall also be imposed at the same rate upon all persons in the county engaged in the business of making sales of service, who, as an incident to making those sales of service, transfer tangible personal property, including transfers by lease, within the county as an incident to a sale of service. The tax imposed under this subsection may not be imposed on tangible personal property taxed at the 1% rate under the Service Occupation Tax Act.

The tax imposed under this subsection 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 board. The tax imposed under this subsection and all civil penalties that may be assessed as an incident thereof shall be collected and enforced by the Department. The Department shall administer and enforce this subsection; collect all taxes and penalties due hereunder; to dispose of taxes and penalties so collected in the manner hereinafter provided; and 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 subsection, the Department and persons who are subject to this subsection 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, 2d, 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), 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 this subsection 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 District Retailers' and Service Occupation Tax Fund.

(d) A tax imposed under this Section applies to leases of tangible personal property in effect, entered into, or renewed on or after the effective date of the ordinance imposing the tax under this Section in the same manner as the tax under this Section applies to other sales and consistent with the tax on leases under the Retailers' Occupation Tax Act and the Service Occupation Tax Act.

(e) By resolution, the board may order the proposition for the imposition of the tax under this Section to be submitted at any election. The board shall certify the question to the proper election authority, who shall submit the proposition at an election in accordance with the general election law.

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 proposition to impose a tax for forest preserve purposes shall be in substantially the following form:

"Shall the [name of forest preserve district] impose a Special Forest Preserve District Retailers' Occupation Tax and Service Occupation Tax (commonly referred to as a "sales tax") at the rate of [insert a percentage in increments of 0.25%] in [name of county] for forest preserve district expenditures in accordance with and subject to the provisions of Section 13.9 of the Downstate Forest Preserve District Act?"

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:

"Shall the [name of forest preserve district] impose a Special Forest Preserve District Retailers' Occupation Tax and Service Occupation Tax (commonly referred to as a "sales tax") at the rate of [insert a percentage in increments of 0.25%] in [name of county] for a period not to exceed [insert number of years] for forest preserve district expenditures in accordance with and subject to the provisions of Section 13.9 of the Downstate Forest Preserve District Act?"

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 forest preserve district board]."

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

If a majority of the legal voters 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 legal voters at any one time.

(f) 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 District Retailers' and Service Occupation Tax Fund, a special fund that is created in the State treasury; 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, the State Comptroller shall order transferred, and the State 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 Department shall prepare and certify to the State Comptroller the disbursement of the stated sums of money to the district from retailers in the district who 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. No later than 10 days after receipt by the State 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 State Comptroller by the Department, the State Comptroller shall cause the orders to be drawn for the respective amounts in accordance with directions contained in the certification.

(g) 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 subsection 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.

(h) 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.

(i) The board shall file a certified copy of the ordinance imposing, increasing the rate of, or discontinuing a tax under this Section with the Department, together with a certification that the ordinance received referendum approval in the case of the imposition of or increase in the rate of such tax, either (i) after October 1 but on or before May 1, whereupon the Department shall proceed to administer and enforce the imposition of, increase in the rate of, or discontinuation of the tax as of the July 1 immediately following the filing; or (ii) after May 1, but on or before October 1, whereupon the Department shall proceed to administer and enforce the imposition of, increase in the rate of, or discontinuation of the tax as of the January 1 immediately following the filing. If the tax imposed under this Section is scheduled to sunset by referendum, the board is required to monitor the sunset date and notify the Department of the sunset by filing a certified copy of an ordinance that includes the sunset date (i) after October 1 but on or before May 1, whereupon the Department shall proceed to discontinue the tax as of the July 1 immediately following the filing; or (ii) after May 1 but on or before October 1, whereupon the Department shall proceed to discontinue the tax as of the January 1 immediately following the filing.

(j) 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 5.1030 as follows:

(30 ILCS 105/5.1030 new)

Sec. 5.1030. The Special Forest Preserve District Retailers' and Service Occupation Tax Fund.

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