093_HB3401eng

 
HB3401 Engrossed                     LRB093 09159 MKM 09391 b

 1        AN ACT concerning certain taxes.

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

 4        Section  5.  The  Counties  Code  is  amended by changing
 5    Section 5-1006.5 as follows:

 6        (55 ILCS 5/5-1006.5)
 7        Sec. 5-1006.5.  Special County Retailers' Occupation  Tax
 8    For Public Safety.
 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
13    retail in the county on the gross  receipts  from  the  sales
14    made  in the course of business to provide revenue to be used
15    exclusively for public safety purposes in that county,  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.  If imposed, this tax shall be imposed only in .25%
19    one-quarter  percent  increments.  By  resolution, the county
20    board may order  the  proposition  to  be  submitted  at  any
21    election.  The county clerk shall certify the question to the
22    proper  election  authority, who shall submit the proposition
23    at an election in accordance with the general election law.
24        The proposition shall be in substantially  the  following
25    form:
26             "Shall  (name  of  county) be authorized to impose a
27        public safety tax at the rate of ....  upon  all  persons
28        engaged  in  the  business  of  selling tangible personal
29        property at retail in the county on gross  receipts  from
30        the sales made in the course of their business to be used
31        for  crime prevention, detention, and other public safety
 
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 1        purposes?"
 2    Votes shall be recorded as Yes or No.  If a majority  of  the
 3    electors  voting  on the proposition vote in favor of it, the
 4    county may impose the tax.
 5        This additional tax may not be imposed on  the  sales  of
 6    food  for  human  consumption  that is to be consumed off the
 7    premises where it is sold (other  than  alcoholic  beverages,
 8    soft  drinks,  and food which has been prepared for immediate
 9    consumption) and prescription and non-prescription medicines,
10    drugs,  medical  appliances  and   insulin,   urine   testing
11    materials,  syringes, and needles used by diabetics.  The tax
12    imposed  by  a  county  under  this  Section  and  all  civil
13    penalties that may be assessed as  an  incident  of  the  tax
14    shall be collected and enforced by the Illinois Department of
15    Revenue.   The  certificate of registration that is issued by
16    the Department to a retailer under the Retailers'  Occupation
17    Tax  Act  shall  permit  the retailer to engage in a business
18    that is  taxable  without  registering  separately  with  the
19    Department  under  an  ordinance  or  resolution  under  this
20    Section.   The  Department  has  full power to administer and
21    enforce this Section, to collect all taxes and penalties  due
22    under  this  Section,  to  dispose  of taxes and penalties so
23    collected in the manner provided  in  this  Section,  and  to
24    determine  all  rights to credit memoranda arising on account
25    of the erroneous payment of  a  tax  or  penalty  under  this
26    Section.   In  the administration of and compliance with this
27    Section, the Department and persons who are subject  to  this
28    Section shall (i) have the same rights, remedies, privileges,
29    immunities,  powers,  and duties, (ii) be subject to the same
30    conditions,   restrictions,   limitations,   penalties,   and
31    definitions of terms, and (iii)  employ  the  same  modes  of
32    procedure  as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
33    1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10  (in  respect  to
34    all  provisions  contained  in  those Sections other than the
 
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 1    State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3  (except
 2    provisions   relating  to  transaction  returns  and  quarter
 3    monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,  5i,
 4    5j,  5k,  5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13
 5    of the Retailers' Occupation Tax Act and Section 3-7  of  the
 6    Uniform  Penalty and Interest Act as if those provisions were
 7    set forth in this Section.
 8        Persons subject to any tax imposed  under  the  authority
 9    granted  in  this  Section may reimburse themselves for their
10    sellers' tax liability by separately stating the  tax  as  an
11    additional charge, which charge may be stated in combination,
12    in a single amount, with State tax which sellers are required
13    to  collect under the Use Tax Act, pursuant to such bracketed
14    schedules as the Department may prescribe.
15        Whenever the Department determines that a  refund  should
16    be made under this Section to a claimant instead of issuing a
17    credit  memorandum,  the  Department  shall  notify the State
18    Comptroller, who shall cause the order to be  drawn  for  the
19    amount  specified and to the person named in the notification
20    from the Department.  The refund shall be paid by  the  State
21    Treasurer   out   of  the  County  Public  Safety  Retailers'
22    Occupation Tax Fund.
23        (b)  If a tax has been imposed under  subsection  (a),  a
24    service occupation tax shall also be imposed at the same rate
25    upon  all  persons engaged, in the county, in the business of
26    making sales of service, who, as an incident to making  those
27    sales  of service, transfer tangible personal property within
28    the county as an incident to a sale of service. This tax  may
29    not be imposed on sales of food for human consumption that is
30    to  be consumed off the premises where it is sold (other than
31    alcoholic beverages,  soft  drinks,  and  food  prepared  for
32    immediate  consumption) and prescription and non-prescription
33    medicines,  drugs,  medical  appliances  and  insulin,  urine
34    testing materials, syringes, and needles used  by  diabetics.
 
HB3401 Engrossed            -4-      LRB093 09159 MKM 09391 b
 1    The tax imposed under this subsection and all civil penalties
 2    that  may  be  assessed  as  an  incident  thereof  shall  be
 3    collected  and  enforced  by  the  Department of Revenue. The
 4    Department has full power  to  administer  and  enforce  this
 5    subsection; to collect all taxes and penalties due hereunder;
 6    to  dispose of taxes and penalties so collected in the manner
 7    hereinafter provided; and to determine all rights  to  credit
 8    memoranda  arising on account of the erroneous payment of tax
 9    or  penalty  hereunder.    In  the  administration  of,   and
10    compliance  with  this subsection, the Department and persons
11    who are subject to this paragraph shall  (i)  have  the  same
12    rights, remedies, privileges, immunities, powers, and duties,
13    (ii)   be  subject  to  the  same  conditions,  restrictions,
14    limitations,   penalties,   exclusions,    exemptions,    and
15    definitions  of  terms,  and  (iii)  employ the same modes of
16    procedure as are prescribed in Sections 2  (except  that  the
17    reference  to State in the definition of supplier maintaining
18    a place of business in this State shall mean the county), 2a,
19    2b, 2c, 3 through 3-50 (in respect to all provisions  therein
20    other  than  the  State  rate  of  tax),  4  (except that the
21    reference to the State shall be  to  the  county),  5,  7,  8
22    (except  that  the  jurisdiction  to which the tax shall be a
23    debt to the extent indicated in that Section 8 shall  be  the
24    county),  9  (except  as  to  the  disposition  of  taxes and
25    penalties  collected),  10,  11,  12  (except  the  reference
26    therein to Section 2b of the Retailers' Occupation Tax  Act),
27    13  (except  that  any  reference to the State shall mean the
28    county), Section 15, 16, 17, 18, 19 and  20  of  the  Service
29    Occupation Tax Act and Section 3-7 of the Uniform Penalty and
30    Interest  Act, as fully as if those provisions were set forth
31    herein.
32        Persons subject to any tax imposed  under  the  authority
33    granted in this subsection may reimburse themselves for their
34    serviceman's  tax  liability by separately stating the tax as
 
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 1    an  additional  charge,  which  charge  may  be   stated   in
 2    combination,   in  a  single  amount,  with  State  tax  that
 3    servicemen are authorized to collect under  the  Service  Use
 4    Tax  Act,  in  accordance  with such bracket schedules as the
 5    Department may prescribe.
 6        Whenever the Department determines that a  refund  should
 7    be  made  under  this  subsection  to  a  claimant instead of
 8    issuing a credit memorandum, the Department shall notify  the
 9    State  Comptroller,  who  shall cause the warrant to be drawn
10    for the amount specified, and to the  person  named,  in  the
11    notification  from  the Department.  The refund shall be paid
12    by the State  Treasurer  out  of  the  County  Public  Safety
13    Retailers' Occupation Fund.
14        Nothing   in   this  subsection  shall  be  construed  to
15    authorize the county to impose a tax upon  the  privilege  of
16    engaging  in any business which under the Constitution of the
17    United States may not be made the subject of taxation by  the
18    State.
19        (c)  The  Department  shall  immediately  pay over to the
20    State Treasurer,  ex  officio,  as  trustee,  all  taxes  and
21    penalties  collected  under this Section to be deposited into
22    the County Public  Safety  Retailers'  Occupation  Tax  Fund,
23    which  shall  be an unappropriated trust fund held outside of
24    the State treasury.  On  or  before  the  25th  day  of  each
25    calendar  month,  the Department shall prepare and certify to
26    the Comptroller the disbursement of stated sums of  money  to
27    the   counties  from  which  retailers  have  paid  taxes  or
28    penalties to  the  Department  during  the  second  preceding
29    calendar  month.   The amount to be paid to each county shall
30    be the amount  (not  including  credit  memoranda)  collected
31    under this Section during the second preceding calendar month
32    by the Department plus an amount the Department determines is
33    necessary to offset any amounts that were erroneously paid to
34    a  different  taxing  body,  and  not including (i) an amount
 
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 1    equal to  the  amount  of  refunds  made  during  the  second
 2    preceding  calendar  month by the Department on behalf of the
 3    county and (ii) any amount that the Department determines  is
 4    necessary  to  offset  any  amounts  that  were  payable to a
 5    different taxing  body  but  were  erroneously  paid  to  the
 6    county.   Within  10 days after receipt by the Comptroller of
 7    the disbursement certification to the counties  provided  for
 8    in  this  Section  to  be  given  to  the  Comptroller by the
 9    Department, the Comptroller shall  cause  the  orders  to  be
10    drawn   for   the   respective  amounts  in  accordance  with
11    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
14    to   each   county   that  received  more  than  $500,000  in
15    disbursements under the preceding paragraph in the  preceding
16    calendar year.  The allocation shall be in an amount equal to
17    the  average  monthly  distribution  made to each such county
18    under the preceding paragraph during the  preceding  calendar
19    year  (excluding  the  2  months  of  highest receipts).  The
20    distribution made in March of each  year  subsequent  to  the
21    year  in  which  an  allocation  was  made  pursuant  to this
22    paragraph and the preceding paragraph shall be reduced by the
23    amount allocated and disbursed under this  paragraph  in  the
24    preceding  calendar  year.   The Department shall prepare and
25    certify to the Comptroller for disbursement  the  allocations
26    made in accordance with this paragraph.
27        (d)  For   the   purpose   of   determining   the   local
28    governmental unit whose tax is applicable, a retail sale by a
29    producer  of  coal  or another mineral mined in Illinois is a
30    sale at retail at the place where the coal or  other  mineral
31    mined   in  Illinois  is  extracted  from  the  earth.   This
32    paragraph does not apply to coal or another mineral  when  it
33    is  delivered  or shipped by the seller to the purchaser at a
34    point outside Illinois so that the sale is exempt  under  the
 
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 1    United States Constitution as a sale in interstate or foreign
 2    commerce.
 3        (e)  Nothing  in  this  Section  shall  be  construed  to
 4    authorize  a  county  to  impose  a tax upon the privilege of
 5    engaging in any business that under the Constitution  of  the
 6    United States may not be made the subject of taxation by this
 7    State.
 8        (e-5)  If  a county imposes a tax under this Section, the
 9    county board may, by ordinance, discontinue or lower the rate
10    of the tax.  If the county  board  lowers  the  tax  rate  or
11    discontinues the tax, a referendum must be held in accordance
12    with  subsection (a) of this Section in order to increase the
13    rate of the tax or to reimpose the discontinued tax.
14        (f)  Beginning April 1, 1998, the results of any election
15    authorizing a proposition to impose a tax under this  Section
16    or  effecting  a  change in the rate of tax, or any ordinance
17    lowering  the  rate  or  discontinuing  the  tax,  shall   be
18    certified  by  the  county  clerk and filed with the Illinois
19    Department of Revenue either (i) on or before the  first  day
20    of   April,   whereupon   the  Department  shall  proceed  to
21    administer and enforce the tax as of the first  day  of  July
22    next following the filing; or (ii) on or before the first day
23    of   October,  whereupon  the  Department  shall  proceed  to
24    administer and enforce the tax as of the first day of January
25    next following the filing.
26        (g)  When certifying the amount of a monthly disbursement
27    to a county under this Section, the Department shall increase
28    or decrease the amounts by an amount necessary to offset  any
29    miscalculation  of previous disbursements.  The offset amount
30    shall be the amount erroneously disbursed within the previous
31    6 months from the time a miscalculation is discovered.
32        (h)  This Section may be cited  as  the  "Special  County
33    Occupation Tax For Public Safety Law".
34        (i)  For   purposes  of  this  Section,  "public  safety"
 
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 1    includes  but  is  not  limited  to  fire  fighting,  police,
 2    medical, ambulance, or other emergency services.
 3    (Source: P.A.  89-107,  eff.  1-1-96;  89-718,  eff.  3-7-97;
 4    90-190,  eff.  7-24-97;  90-267,  eff.  7-30-97; 90-552, eff.
 5    12-12-97;  90-562,  eff.  12-16-97;  90-655,  eff.   7-30-98;
 6    90-689, eff. 7-31-98.)