Sen. David Koehler
Filed: 5/28/2008
 
 

 




 

 		












09500HB4545sam002

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AMENDMENT TO HOUSE BILL 4545 




2
    AMENDMENT NO. ______. Amend House Bill 4545, AS AMENDED, 
3
with reference to page and line numbers of Senate Amendment No. 
4
1, on page 9, by replacing line 5 with the following:


 
5
"Sections 5-1006.5 and 5-1062.3 as follows:
 



6
    (55 ILCS 5/5-1006.5)


7
    Sec. 5-1006.5. Special County Retailers' Occupation Tax

8
For Public Safety, Public Facilities, or Transportation.

9
    (a) The county board of any county may impose a
tax upon 
10
all persons engaged in the business of selling tangible 
11
personal
property, other than personal property titled or 
12
registered with an agency of
this State's government, at retail 
13
in the county on the gross receipts from the
sales made in the 
14
course of business to provide revenue to be used exclusively

15
for public safety, public facility, or transportation purposes 
16
in that county, if a
proposition for the
tax has been submitted 
 


 






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to the electors of that county and
approved by a majority of 
2
those voting on the question.  If imposed, this tax
shall be 
3
imposed only in one-quarter percent increments. By resolution, 
4
the
county board may order the proposition to be submitted at 
5
any election.
If the tax is imposed for
transportation purposes 
6
for expenditures for public highways or as
authorized
under the 
7
Illinois Highway Code, the county board must publish notice
of 
8
the existence of its long-range highway transportation
plan as 
9
required or described in Section 5-301 of the Illinois
Highway 
10
Code and must make the plan publicly available prior to

11
approval of the ordinance or resolution
imposing the tax. If 
12
the tax is imposed for transportation purposes for
expenditures 
13
for passenger rail transportation, the county board must 
14
publish
notice of the existence of its long-range passenger 
15
rail transportation plan
and
must make the plan publicly 
16
available prior to approval of the ordinance or
resolution 
17
imposing the tax. The county clerk shall certify the
question 
18
to the proper election authority, who
shall submit the 
19
proposition at an election in accordance with the general

20
election law.


21
        (1) The proposition for public safety purposes shall be 
22
    in
substantially the following form:
23
        "To pay for public safety purposes, shall (name of 
24
    county) be authorized to impose an increase on its share of 
25
    local sales taxes by (insert rate)?"
26
        As additional information on the ballot below the 
 


 






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    question shall appear the following:
2
        "This would mean that a consumer would pay an 
3
    additional (insert amount) in sales tax for every $100 of 
4
    tangible personal property bought at retail."


5
        The county board may also opt to establish a sunset 
6
    provision at which time the additional sales tax would 
7
    cease being collected, if not terminated earlier by a vote 
8
    of the county board.  If the county board votes to include a 
9
    sunset provision, the proposition for public safety 
10
    purposes shall be in substantially the following form:
11
        "To pay for public safety purposes, shall (name of 
12
    county) be authorized to impose an increase on its share of 
13
    local sales taxes by (insert rate) for a period not to 
14
    exceed (insert number of years)?"
15
        As additional information on the ballot below the 
16
    question shall appear the following:
17
        "This would mean that a consumer would pay an 
18
    additional (insert amount) in sales tax for every $100 of 
19
    tangible personal property bought at retail. If imposed, 
20
    the additional tax would cease being collected at the end 
21
    of (insert number of years), if not terminated earlier by a 
22
    vote of the county board."



23
        For the purposes of the
paragraph, "public safety 
24
    purposes" means
crime prevention, detention, fire 
25
    fighting, police, medical, ambulance, or
other emergency 
26
    services.


 


 






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


2
        (2) The proposition for transportation purposes shall 
3
    be in
substantially
the following form:
4
        "To pay for improvements to roads and other 
5
    transportation purposes, shall (name of county) be 
6
    authorized to impose an increase on its share of local 
7
    sales taxes by (insert rate)?"
8
        As additional information on the ballot below the 
9
    question shall appear the following:
10
        "This would mean that a consumer would pay an 
11
    additional (insert amount) in sales tax for every $100 of 
12
    tangible personal property bought at retail."


13
        The county board may also opt to establish a sunset 
14
    provision at which time the additional sales tax would 
15
    cease being collected, if not terminated earlier by a vote 
16
    of the county board.  If the county board votes to include a 
17
    sunset provision, the proposition for transportation 
18
    purposes shall be in substantially the following form:
19
        "To pay for road improvements and other transportation 
20
    purposes, shall (name of county) be authorized to impose an 
21
    increase on its share of local sales taxes by (insert rate) 
22
    for a period not to exceed (insert number of years)?"
23
        As additional information on the ballot below the 
24
    question shall appear the following:
25
        "This would mean that a consumer would pay an 
26
    additional (insert amount) in sales tax for every $100 of 
 


 






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    tangible personal property bought at retail. If imposed, 
2
    the additional tax would cease being collected at the end 
3
    of (insert number of years), if not terminated earlier by a 
4
    vote of the county board."



5
        For the purposes of this paragraph, transportation 
6
    purposes means
construction, maintenance, operation, and 
7
    improvement of
public highways, any other purpose for which 
8
    a county may expend funds under
the Illinois Highway Code, 
9
    and passenger rail transportation.


10
        The votes shall be recorded as "Yes" or "No".

11
        (3)  The proposition for public facility purposes shall 
12
    be in substantially the following form: 
13
        "To pay for public facility purposes, shall (name of

    
14
    county) be authorized to impose an increase on its share of

    
15
    local sales taxes by (insert rate)?" 
16
        As additional information on the ballot below the

    
17
    question shall appear the following: 
18
        "This would mean that a consumer would pay an

    
19
    additional (insert amount) in sales tax for every $100 of

    
20
    tangible personal property bought at retail." 
21
        The county board may also opt to establish a sunset

    
22
    provision at which time the additional sales tax would

    
23
    cease being collected, if not terminated earlier by a vote

    
24
    of the county board. If the county board votes to include a

    
25
    sunset provision, the proposition for public facility

    
26
    purposes shall be in substantially the following form: 
 


 






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        "To pay for public facility purposes, shall (name of

    
2
    county) be authorized to impose an increase on its share of

    
3
    local sales taxes by (insert rate) for a period not to

    
4
    exceed (insert number of years)?" 
5
        As additional information on the ballot below the

    
6
    question shall appear the following: 
7
        "This would mean that a consumer would pay an

    
8
    additional (insert amount) in sales tax for every $100 of

    
9
    tangible personal property bought at retail. If imposed,

    
10
    the additional tax would cease being collected at the end

    
11
    of (insert number of years), if not terminated earlier by a

    
12
    vote of the county board." 
13
        For purposes of this Section, "public facilities 
14
    purposes" means the acquisition, development, 
15
    construction, reconstruction, rehabilitation, improvement, 
16
    financing, architectural planning, and installation of 
17
    capital facilities consisting of buildings, structures, 
18
    and durable equipment and for the acquisition and 
19
    improvement of real property and interest in real property 
20
    required, or expected to be required, in connection with 
21
    the public facilities, for use by the county for the 
22
    furnishing of governmental services to its citizens, 
23
    including but not limited to museums and nursing homes. 
24
        The votes shall be recorded as "Yes" or "No". 
25
    If a majority of the electors voting on
the proposition 
26
vote in favor of it, the county may impose the tax.
 A county 
 


 






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may not submit more than one proposition authorized by this 
2
Section
to the electors at any one time.

3
    This additional tax may not be imposed on the sales of food 
4
for human
consumption that is to be consumed off the premises 
5
where it is sold (other
than alcoholic beverages, soft drinks, 
6
and food which has been prepared for
immediate consumption) and 
7
prescription and non-prescription medicines, drugs,
medical 
8
appliances and insulin, urine testing materials, syringes, and 
9
needles
used by diabetics.  The tax imposed by a county under 
10
this Section and
all civil penalties that may be assessed as an 
11
incident of the tax shall be
collected and enforced by the 
12
Illinois Department of Revenue and deposited
into a special 
13
fund created for that purpose.  The certificate
of registration 
14
that is issued by the Department to a retailer under the

15
Retailers' Occupation Tax Act shall permit the retailer to 
16
engage in a business
that is taxable without registering 
17
separately with the Department under an
ordinance or resolution 
18
under this Section.  The Department has full
power to administer 
19
and enforce this Section, to collect all taxes and
penalties 
20
due under this Section, to dispose of taxes and penalties so

21
collected in the manner provided in this Section, and to 
22
determine
all rights to credit memoranda arising on account of 
23
the erroneous payment of
a tax or penalty under this Section.  
24
In the administration of and compliance
with this Section, the 
25
Department and persons who are subject to this Section
shall 
26
(i) have the same rights, remedies, privileges, immunities, 
 


 






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powers, and
duties, (ii) be subject to the same conditions, 
2
restrictions, limitations,
penalties, and definitions of 
3
terms, and (iii) employ the same modes of
procedure as are 
4
prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f,
1i, 1j,
1k, 1m, 
5
1n,
2 through 2-70 (in respect to all provisions contained in 
6
those Sections
other than the
State rate of tax), 2a, 2b, 2c, 3 
7
(except provisions
relating to
transaction returns and quarter 
8
monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e,
5f,
5g, 5h, 5i, 
9
5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of 
10
the
Retailers' Occupation Tax Act and Section 3-7 of the 
11
Uniform Penalty and
Interest Act as if those provisions were 
12
set forth in this Section.

13
    Persons subject to any tax imposed under the authority 
14
granted in this
Section may reimburse themselves for their 
15
sellers' tax liability by
separately stating the tax as an 
16
additional charge, which charge may be stated
in combination, 
17
in a single amount, with State tax which sellers are required

18
to collect under the Use Tax Act, pursuant to such bracketed 
19
schedules as the
Department may prescribe.

20
    Whenever the Department determines that a refund should be 
21
made under this
Section to a claimant instead of issuing a 
22
credit memorandum, the Department
shall notify the State 
23
Comptroller, who shall cause the order to be drawn for
the 
24
amount specified and to the person named in the notification 
25
from the
Department.  The refund shall be paid by the State 
26
Treasurer out of the County
Public Safety or Transportation 
 


 






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Retailers' Occupation Tax Fund.

2
    (b) If a tax has been imposed under subsection (a), a

3
service occupation tax shall
also be imposed at the same rate 
4
upon all persons engaged, in the county, in
the business
of 
5
making sales of service, who, as an incident to making those 
6
sales of
service, transfer tangible personal property within 
7
the county
as an
incident to a sale of service.
This tax may 
8
not be imposed on sales of food for human consumption that is 
9
to
be consumed off the premises where it is sold (other than 
10
alcoholic beverages,
soft drinks, and food prepared for 
11
immediate consumption) and prescription and
non-prescription 
12
medicines, drugs, medical appliances and insulin, urine

13
testing materials, syringes, and needles used by diabetics.
The 
14
tax imposed under this subsection and all civil penalties that 
15
may be
assessed as an incident thereof shall be collected and 
16
enforced by the
Department of Revenue. The Department has
full 
17
power to
administer and enforce this subsection; to collect all 
18
taxes and penalties
due hereunder; to dispose of taxes and 
19
penalties so collected in the manner
hereinafter provided; and 
20
to determine all rights to credit memoranda
arising on account 
21
of the erroneous payment of tax or penalty hereunder.
In the 
22
administration of, and compliance with this subsection, the

23
Department and persons who are subject to this paragraph shall 
24
(i) have the
same rights, remedies, privileges, immunities, 
25
powers, and duties, (ii) be
subject to the same conditions, 
26
restrictions, limitations, penalties,
exclusions, exemptions, 
 


 






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and definitions of terms, and (iii) employ the same
modes
of 
2
procedure as are prescribed in Sections 2 (except that the

3
reference to State in the definition of supplier maintaining a 
4
place of
business in this State shall mean the county), 2a, 2b, 
5
2c, 3 through
3-50 (in respect to all provisions therein other 
6
than the State rate of
tax), 4 (except that the reference to 
7
the State shall be to the county),
5, 7, 8 (except that the 
8
jurisdiction to which the tax shall be a debt to
the extent 
9
indicated in that Section 8 shall be the county), 9 (except as

10
to the disposition of taxes and penalties collected), 10, 11, 
11
12 (except the reference therein to Section 2b of the

12
Retailers' Occupation Tax Act), 13 (except that any reference 
13
to the State
shall mean the county), Section 15, 16,
17, 18, 19 
14
and 20 of the Service Occupation Tax Act and Section 3-7 of
the 
15
Uniform Penalty and Interest Act, as fully as if those 
16
provisions were
set forth herein.

17
    Persons subject to any tax imposed under the authority 
18
granted in
this subsection may reimburse themselves for their 
19
serviceman's tax liability
by separately stating the tax as an 
20
additional charge, which
charge may be stated in combination, 
21
in a single amount, with State tax
that servicemen are 
22
authorized to collect under the Service Use Tax Act, in

23
accordance with such bracket schedules as the Department may 
24
prescribe.

25
    Whenever the Department determines that a refund should be 
26
made under this
subsection to a claimant instead of issuing a 
 


 






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credit memorandum, the Department
shall notify the State 
2
Comptroller, who shall cause the warrant to be drawn
for the 
3
amount specified, and to the person named, in the notification

4
from the Department.  The refund shall be paid by the State 
5
Treasurer out
of the County Public Safety or Transportation 
6
Retailers' Occupation Fund.

7
    Nothing in this subsection shall be construed to authorize 
8
the county
to impose a tax upon the privilege of engaging in 
9
any business which under
the Constitution of the United States 
10
may not be made the subject of taxation
by the State.

11
    (c) The Department shall immediately pay over to the State 
12
Treasurer, ex
officio,
as trustee, all taxes and penalties 
13
collected under this Section to be
deposited into the County 
14
Public Safety or Transportation Retailers'
Occupation Tax 
15
Fund, which
shall be an unappropriated trust fund held outside 
16
of the State treasury.  On
or before the 25th
day of each 
17
calendar month, the Department shall prepare and certify to the

18
Comptroller the disbursement of stated sums of money
to the 
19
counties from which retailers have paid
taxes or penalties to 
20
the Department during the second preceding
calendar month.  The 
21
amount to be paid to each county, and deposited by the
county 
22
into its special fund created for the purposes of this Section, 
23
shall
be the amount (not
including credit memoranda) collected 
24
under this Section during the second
preceding
calendar month 
25
by the Department plus an amount the Department determines is

26
necessary to offset any amounts that were erroneously paid to a 
 


 






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different
taxing body, and not including (i) an amount equal to 
2
the amount of refunds
made
during the second preceding calendar 
3
month by the Department on behalf of
the county and (ii) any 
4
amount that the Department determines is
necessary to offset 
5
any amounts that were payable to a different taxing body
but 
6
were erroneously paid to the county.  Within 10 days after 
7
receipt by the
Comptroller of the disbursement certification to 
8
the counties provided for in
this Section to be given to the 
9
Comptroller by the Department, the Comptroller
shall cause the 
10
orders to be drawn for the respective amounts in accordance

11
with directions contained in the certification.

12
    In addition to the disbursement required by the preceding 
13
paragraph, an
allocation shall be made in March of each year to 
14
each county that received
more than $500,000 in disbursements 
15
under the preceding paragraph in the
preceding calendar year.  
16
The allocation shall be in an amount equal to the
average 
17
monthly distribution made to each such county under the 
18
preceding
paragraph during the preceding calendar year 
19
(excluding the 2 months of
highest receipts).  The distribution 
20
made in March of each year subsequent to
the year in which an 
21
allocation was made pursuant to this paragraph and the

22
preceding paragraph shall be reduced by the amount allocated 
23
and disbursed
under this paragraph in the preceding calendar 
24
year.  The Department shall
prepare and certify to the 
25
Comptroller for disbursement the allocations made in

26
accordance with this paragraph.

 


 






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    (d) For the purpose of determining the local governmental 
2
unit whose tax is
applicable, a retail sale by a producer of 
3
coal or another mineral mined in
Illinois is a sale at retail 
4
at the place where the coal or other mineral mined
in Illinois 
5
is extracted from the earth.  This paragraph does not apply to 
6
coal
or another mineral when it is delivered or shipped by the 
7
seller to the
purchaser
at a point outside Illinois so that the 
8
sale is exempt under the United States
Constitution as a sale 
9
in interstate or foreign commerce.

10
    (e) Nothing in this Section shall be construed to authorize 
11
a county to
impose a
tax upon the privilege of engaging in any 
12
business that under the Constitution
of the United States may 
13
not be made the subject of taxation by this State.

14
    (e-5) If a county imposes a tax under this Section, the 
15
county board may,
by ordinance, discontinue or lower the rate 
16
of the tax.  If the county board
lowers the tax rate or 
17
discontinues the tax, a referendum must be
held in accordance 
18
with subsection (a) of this Section in order to increase the

19
rate of the tax or to reimpose the discontinued tax.

20
    (f) Beginning April 1, 1998, the results of any election 
21
authorizing a
proposition to impose a tax
under this Section or 
22
effecting a change in the rate of tax, or any ordinance

23
lowering the rate or discontinuing the tax,
shall be certified

24
by the
county clerk and filed with the Illinois Department of 
25
Revenue
either (i) on or
before the first day of April, 
26
whereupon the Department shall proceed to
administer and 
 


 






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enforce the tax as of the first day of July next following
the 
2
filing; or (ii)
on or before the first day of October, 
3
whereupon the
Department shall proceed to administer and 
4
enforce the tax as of the first
day of January next following 
5
the filing.

6
    (g) When certifying the amount of a monthly disbursement to 
7
a county under
this
Section, the Department shall increase or 
8
decrease the amounts by an amount
necessary to offset any 
9
miscalculation of previous disbursements.  The offset
amount 
10
shall be the amount erroneously disbursed within the previous 6 
11
months
from the time a miscalculation is discovered.

12
    (h) This Section may be cited as the "Special County 
13
Occupation Tax
For Public Safety, Public Facilities, or 
14
Transportation Law".

15
    (i) For purposes of this Section, "public safety" includes, 
16
but is not
limited to, crime prevention, detention, fire 
17
fighting, police, medical,
ambulance, or other emergency

18
services.  For the purposes of this Section, "transportation" 
19
includes, but
is not limited to, the construction,
maintenance, 
20
operation, and improvement of public highways, any other

21
purpose for which a county may expend funds under the Illinois 
22
Highway Code,
and passenger rail transportation. For the 
23
purposes of this Section, "public facilities purposes" 
24
includes, but is not limited to, the acquisition, development, 
25
construction, reconstruction, rehabilitation, improvement, 
26
financing, architectural planning, and installation of capital 
 


 






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facilities consisting of buildings, structures, and durable 
2
equipment and for the acquisition and improvement of real 
3
property and interest in real property required, or expected to 
4
be required, in connection with the public facilities, for use 
5
by the county for the furnishing of governmental services to 
6
its citizens, including but not limited to museums and nursing 
7
homes. 

8
(Source: P.A. 94-781, eff. 5-19-06; 95-474, eff. 1-1-08.)".