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1 | AN ACT concerning local government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Counties Code is amended by changing Section | ||||||
5 | 5-1006.7 as follows: | ||||||
6 | (55 ILCS 5/5-1006.7) | ||||||
7 | Sec. 5-1006.7. School facility occupation taxes. | ||||||
8 | (a) The county board of any county may impose a tax upon | ||||||
9 | all persons engaged in the business of selling tangible | ||||||
10 | personal property, other than personal property titled or | ||||||
11 | registered with an agency of this State's government, at retail | ||||||
12 | in the county on the gross receipts from the sales made in the | ||||||
13 | course of business to provide revenue to be used exclusively | ||||||
14 | for school facility purposes , or municipal infrastructure | ||||||
15 | purposes as provided in subsection (h-5) of this Section, if a | ||||||
16 | proposition for the tax has been submitted to the electors of | ||||||
17 | that county and approved by a majority of those voting on the | ||||||
18 | question as provided in subsection (c). The tax under this | ||||||
19 | Section may be imposed only in one-quarter percent increments | ||||||
20 | and may not exceed 1%. | ||||||
21 | This additional tax may not be imposed on the sale of food | ||||||
22 | for human consumption that is to be consumed off the premises | ||||||
23 | where it is sold (other than alcoholic beverages, soft drinks, |
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1 | and food that has been prepared for immediate consumption) and | ||||||
2 | prescription and non-prescription medicines, drugs, medical | ||||||
3 | appliances and insulin, urine testing materials, syringes and | ||||||
4 | needles used by diabetics.
The Department of Revenue has full | ||||||
5 | power to administer and enforce this subsection, to collect all | ||||||
6 | taxes and penalties due under this subsection, to dispose of | ||||||
7 | taxes and penalties so collected in the manner provided in this | ||||||
8 | subsection, and to determine all rights to credit memoranda | ||||||
9 | arising on account of the erroneous payment of a tax or penalty | ||||||
10 | under this subsection. The Department shall deposit all taxes | ||||||
11 | and penalties collected under this subsection into a special | ||||||
12 | fund created for that purpose. | ||||||
13 | In the administration of and compliance with this | ||||||
14 | subsection, the Department and persons who are subject to this | ||||||
15 | subsection (i) have the same rights, remedies, privileges, | ||||||
16 | immunities, powers, and duties, (ii) are subject to the same | ||||||
17 | conditions, restrictions, limitations, penalties, and | ||||||
18 | definitions of terms, and (iii) shall employ the same modes of | ||||||
19 | procedure as are set forth in Sections 1 through 1o, 2 through | ||||||
20 | 2-70 (in respect to all provisions contained in those Sections | ||||||
21 | other than the State rate of tax), 2a through 2h, 3 (except as | ||||||
22 | to the disposition of taxes and penalties collected), 4, 5, 5a, | ||||||
23 | 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, | ||||||
24 | 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act | ||||||
25 | and all provisions of the Uniform Penalty and Interest Act as | ||||||
26 | if those provisions were set forth in this subsection. |
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1 | The certificate of registration that is issued by the | ||||||
2 | Department to a retailer under the Retailers' Occupation Tax | ||||||
3 | Act permits the retailer to engage in a business that is | ||||||
4 | taxable without registering separately with the Department | ||||||
5 | under an ordinance or resolution under this subsection. | ||||||
6 | Persons subject to any tax imposed under the authority | ||||||
7 | granted in this subsection may reimburse themselves for their | ||||||
8 | seller's tax liability by separately stating that tax as an | ||||||
9 | additional charge, which may be stated in combination, in a | ||||||
10 | single amount, with State tax that sellers are required to | ||||||
11 | collect under the Use Tax Act, pursuant to any bracketed | ||||||
12 | schedules set forth by the Department. | ||||||
13 | (b) If a tax has been imposed under subsection (a), then a | ||||||
14 | service occupation tax must also be imposed at the same rate | ||||||
15 | upon all persons engaged, in the county, in the business of | ||||||
16 | making sales of service, who, as an incident to making those | ||||||
17 | sales of service, transfer tangible personal property within | ||||||
18 | the county as an incident to a sale of service. | ||||||
19 | This tax may not be imposed on sales of food for human | ||||||
20 | consumption that is to be consumed off the premises where it is | ||||||
21 | sold (other than alcoholic beverages, soft drinks, and food | ||||||
22 | prepared for immediate consumption) and prescription and | ||||||
23 | non-prescription medicines, drugs, medical appliances and | ||||||
24 | insulin, urine testing materials, syringes, and needles used by | ||||||
25 | diabetics. | ||||||
26 | The tax imposed under this subsection and all civil |
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1 | penalties that may be assessed as an incident thereof shall be | ||||||
2 | collected and enforced by the Department and deposited into a | ||||||
3 | special fund created for that purpose. The Department has full | ||||||
4 | power to administer and enforce this subsection, to collect all | ||||||
5 | taxes and penalties due under this subsection, to dispose of | ||||||
6 | taxes and penalties so collected in the manner provided in this | ||||||
7 | subsection, and to determine all rights to credit memoranda | ||||||
8 | arising on account of the erroneous payment of a tax or penalty | ||||||
9 | under this subsection. | ||||||
10 | In the administration of and compliance with this | ||||||
11 | subsection, the Department and persons who are subject to this | ||||||
12 | subsection shall (i) have the same rights, remedies, | ||||||
13 | privileges, immunities, powers and duties, (ii) be subject to | ||||||
14 | the same conditions, restrictions, limitations, penalties and | ||||||
15 | definition of terms, and (iii) employ the same modes of | ||||||
16 | procedure as are set forth in Sections 2 (except that that | ||||||
17 | reference to State in the definition of supplier maintaining a | ||||||
18 | place of business in this State means the county), 2a through | ||||||
19 | 2d, 3 through 3-50 (in respect to all provisions contained in | ||||||
20 | those Sections other than the State rate of tax), 4 (except | ||||||
21 | that the reference to the State shall be to the county), 5, 7, | ||||||
22 | 8 (except that the jurisdiction to which the tax is a debt to | ||||||
23 | the extent indicated in that Section 8 is the county), 9 | ||||||
24 | (except as to the disposition of taxes and penalties | ||||||
25 | collected), 10, 11, 12 (except the reference therein to Section | ||||||
26 | 2b of the Retailers' Occupation Tax Act), 13 (except that any |
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1 | reference to the State means the county), Section 15, 16, 17, | ||||||
2 | 18, 19, and 20 of the Service Occupation Tax Act and all | ||||||
3 | provisions of the Uniform Penalty and Interest Act, as fully as | ||||||
4 | if those provisions were set forth herein. | ||||||
5 | Persons subject to any tax imposed under the authority | ||||||
6 | granted in this subsection may reimburse themselves for their | ||||||
7 | serviceman's tax liability by separately stating the tax as an | ||||||
8 | additional charge, which may be stated in combination, in a | ||||||
9 | single amount, with State tax that servicemen are authorized to | ||||||
10 | collect under the Service Use Tax Act, pursuant to any | ||||||
11 | bracketed schedules set forth by the Department. | ||||||
12 | (c) The tax under this Section may not be imposed until, by | ||||||
13 | ordinance or resolution of the county board, the question of | ||||||
14 | imposing the tax has been submitted to the electors of the | ||||||
15 | county at a regular election and approved by a majority of the | ||||||
16 | electors voting on the question. Upon a resolution by the | ||||||
17 | county board or a resolution by school district boards that | ||||||
18 | represent at least 51% of the student enrollment within the | ||||||
19 | county, the county board must certify the question to the | ||||||
20 | proper election authority in accordance with the Election Code. | ||||||
21 | The election authority must submit the question in | ||||||
22 | substantially the following form: | ||||||
23 | Shall (name of county) be authorized to impose a | ||||||
24 | retailers' occupation tax and a service occupation tax | ||||||
25 | (commonly referred to as a "sales tax") at a rate of | ||||||
26 | (insert rate) to be used exclusively for school facility |
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1 | purposes? | ||||||
2 | The election authority must record the votes as "Yes" or "No". | ||||||
3 | If a majority of the electors voting on the question vote | ||||||
4 | in the affirmative, then the county may, thereafter, impose the | ||||||
5 | tax. | ||||||
6 | For the purposes of this subsection (c), "enrollment" means | ||||||
7 | the head count of the students residing in the county on the | ||||||
8 | last school day of September of each year, which must be | ||||||
9 | reported on the Illinois State Board of Education Public School | ||||||
10 | Fall Enrollment/Housing Report.
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11 | (d) 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 School | ||||||
14 | Facility Occupation Tax Fund, which shall be an unappropriated | ||||||
15 | trust fund held outside the State treasury. | ||||||
16 | On or before the 25th day of each calendar month, the | ||||||
17 | Department shall prepare and certify to the Comptroller the | ||||||
18 | disbursement of stated sums of money to the regional | ||||||
19 | superintendents of schools in counties from which retailers or | ||||||
20 | servicemen have paid taxes or penalties to the Department | ||||||
21 | during the second preceding calendar month. The amount to be | ||||||
22 | paid to each regional superintendent of schools and disbursed | ||||||
23 | to him or her in accordance with 3-14.31 of the School Code, is | ||||||
24 | equal to the amount (not including credit memoranda) collected | ||||||
25 | from the county under this Section during the second preceding | ||||||
26 | calendar month by the Department, (i) less 2% of that amount, |
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1 | which shall be deposited into the Tax Compliance and | ||||||
2 | Administration Fund and shall be used by the Department, | ||||||
3 | subject to appropriation, to cover the costs of the Department | ||||||
4 | in administering and enforcing the provisions of this Section, | ||||||
5 | on behalf of the county, (ii) plus an amount that the | ||||||
6 | Department determines is necessary to offset any amounts that | ||||||
7 | were erroneously paid to a different taxing body; (iii) less an | ||||||
8 | amount equal to the amount of refunds made during the second | ||||||
9 | preceding calendar month by the Department on behalf of the | ||||||
10 | county; and (iv) less any amount that the Department determines | ||||||
11 | is necessary to offset any amounts that were payable to a | ||||||
12 | different taxing body but were erroneously paid to the county. | ||||||
13 | When certifying the amount of a monthly disbursement to a | ||||||
14 | regional superintendent of schools under this Section, the | ||||||
15 | Department shall increase or decrease the amounts by an amount | ||||||
16 | necessary to offset any miscalculation of previous | ||||||
17 | disbursements within the previous 6 months from the time a | ||||||
18 | miscalculation is discovered. | ||||||
19 | Within 10 days after receipt by the Comptroller from the | ||||||
20 | Department of the disbursement certification to the regional | ||||||
21 | superintendents of the schools provided for in this Section, | ||||||
22 | the Comptroller shall cause the orders to be drawn for the | ||||||
23 | respective amounts in accordance with directions contained in | ||||||
24 | the certification. | ||||||
25 | If the Department determines that a refund should be made | ||||||
26 | under this Section to a claimant instead of issuing a credit |
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1 | memorandum, then the Department shall notify the Comptroller, | ||||||
2 | who shall cause the order to be drawn for the amount specified | ||||||
3 | and to the person named in the notification from the | ||||||
4 | Department. The refund shall be paid by the Treasurer out of | ||||||
5 | the School Facility Occupation Tax Fund.
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6 | (e) For the purposes of determining the local governmental | ||||||
7 | unit whose tax is applicable, a retail sale by a producer of | ||||||
8 | coal or another mineral mined in Illinois is a sale at retail | ||||||
9 | at the place where the coal or other mineral mined in Illinois | ||||||
10 | is extracted from the earth. This subsection does not apply to | ||||||
11 | coal or another mineral when it is delivered or shipped by the | ||||||
12 | seller to the purchaser at a point outside Illinois so that the | ||||||
13 | sale is exempt under the United States Constitution as a sale | ||||||
14 | in interstate or foreign commerce. | ||||||
15 | (f) Nothing in this Section may be construed to authorize a | ||||||
16 | county board to impose a tax upon the privilege of engaging in | ||||||
17 | any business that under the Constitution of the United States | ||||||
18 | may not be made the subject of taxation by this State. | ||||||
19 | (g) If a county board imposes a tax under this Section, | ||||||
20 | then the board may, by ordinance, discontinue or reduce the | ||||||
21 | rate of the tax. If, however, a school board issues bonds that | ||||||
22 | are backed by the proceeds of the tax under this Section, then | ||||||
23 | the county board may not reduce the tax rate or discontinue the | ||||||
24 | tax if that rate reduction or discontinuance would inhibit the | ||||||
25 | school board's ability to pay the principal and interest on | ||||||
26 | those bonds as they become due. If the county board reduces the |
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1 | tax rate or discontinues the tax, then a referendum must be | ||||||
2 | held in accordance with subsection (c) of this Section in order | ||||||
3 | to increase the rate of the tax or to reimpose the discontinued | ||||||
4 | tax. | ||||||
5 | The results of any election that authorizes a proposition | ||||||
6 | to impose a tax under this Section or to change the rate of the | ||||||
7 | tax along with an ordinance imposing the tax, or any ordinance | ||||||
8 | that lowers the rate or discontinues the tax, must be certified | ||||||
9 | by the county clerk and filed with the Illinois Department of | ||||||
10 | Revenue either (i) on or before the first day of April, | ||||||
11 | whereupon the Department shall proceed to administer and | ||||||
12 | enforce the tax or change in the rate as of the first day of | ||||||
13 | July next following the filing; or (ii) on or before the first | ||||||
14 | day of October, whereupon the Department shall proceed to | ||||||
15 | administer and enforce the tax or change in the rate as of the | ||||||
16 | first day of January next following the filing. | ||||||
17 | (h) For purposes of this Section, "school facility | ||||||
18 | purposes" means the acquisition, development, construction, | ||||||
19 | reconstruction, rehabilitation, improvement, financing, | ||||||
20 | architectural planning, and installation of capital facilities | ||||||
21 | consisting of buildings, structures, and durable equipment and | ||||||
22 | for the acquisition and improvement of real property and | ||||||
23 | interest in real property required, or expected to be required, | ||||||
24 | in connection with the capital facilities. "School-facility | ||||||
25 | purposes" also includes fire prevention, safety, energy | ||||||
26 | conservation, disabled accessibility, school security, and |
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1 | specified repair purposes set forth under Section 17-2.11 of | ||||||
2 | the School Code. | ||||||
3 | (h-5) Any school district that receives proceeds from a tax | ||||||
4 | imposed under this Section may enter into an intergovernmental | ||||||
5 | agreement with a municipality that is located, in whole or in | ||||||
6 | part, within the boundaries of the district to share all or a | ||||||
7 | part of the proceeds distributed to the school district under | ||||||
8 | Section 3-14.31 of the School Code. The municipality may use | ||||||
9 | its share of the proceeds only for municipal infrastructure | ||||||
10 | purposes. Before entering into an agreement under this Section | ||||||
11 | the school board shall, by resolution, cause the question to be | ||||||
12 | submitted to the voters residing in the district at an election | ||||||
13 | held in accordance with the general election law. The question | ||||||
14 | shall be in substantially the following form: | ||||||
15 | "Shall (school district) be authorized to enter into an | ||||||
16 | intergovernmental agreement with (municipality) to share | ||||||
17 | the district's school facility occupation tax proceeds?" | ||||||
18 | If a majority of the electors voting on the question vote | ||||||
19 | in the affirmative, then the district may enter into the | ||||||
20 | agreement. | ||||||
21 | (i) This Section does not apply to Cook County. | ||||||
22 | (j) This Section may be cited as the County School Facility | ||||||
23 | Occupation Tax Law.
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24 | (Source: P.A. 95-675, eff. 10-11-07.) | ||||||
25 | Section 10. The School Code is amended by changing Section |
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1 | 3-14.31 as follows: | ||||||
2 | (105 ILCS 5/3-14.31)
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3 | Sec. 3-14.31. School facility occupation tax proceeds. | ||||||
4 | (a) Within 30 days after receiving any proceeds of a school | ||||||
5 | facility occupation tax under Section 5-1006.7 of the Counties | ||||||
6 | Code, each regional superintendent must disburse those | ||||||
7 | proceeds to each school district that is located in the county | ||||||
8 | in which the tax was collected. | ||||||
9 | (b) The proceeds must be disbursed on an enrollment basis | ||||||
10 | and allocated based upon the number of each school district's | ||||||
11 | resident pupils that reside within the county collecting the | ||||||
12 | tax divided by the total number of resident students within the | ||||||
13 | county.
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14 | (c) A school district that receives a distribution under | ||||||
15 | this Section may enter into an intergovernmental agreement as | ||||||
16 | authorized in subsection (h-5) of Section 5-1006.7 of the | ||||||
17 | Counties Code. | ||||||
18 | (Source: P.A. 95-675, eff. 10-11-07; 95-850, eff. 1-1-09.)
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19 | Section 99. Effective date. This Act takes effect upon | ||||||
20 | becoming law.
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