093_SB0154eng

 
SB154 Engrossed                      LRB093 02563 MKM 02573 b

 1        AN ACT concerning county 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 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
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 or transportation purposes in
16    that county, if a proposition for the tax has been  submitted
17    to  the electors of that county and approved by a majority of
18    those voting on the question.  If imposed, this tax shall  be
19    imposed   only   in   one-quarter   percent   increments.  By
20    resolution, the county board may order the proposition to  be
21    submitted  at  any  election.  If  the  tax  is  imposed  for
22    transportation purposes, the county board must publish notice
23    of  the  existence  of  its long-range highway transportation
24    plan as  required  or  described  in  Section  5-301  of  the
25    Illinois  Highway  Code  and  must  make  the  plan  publicly
26    available  prior  to  approval of the ordinance or resolution
27    imposing the  tax.    The  county  clerk  shall  certify  the
28    question  to  the proper election authority, who shall submit
29    the proposition at an election in accordance with the general
30    election law.
31             (1)  The  proposition  for  public  safety  purposes
 
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 1        shall be in substantially the following form:
 2             "Shall (name of county) be authorized  to  impose  a
 3        public  safety  tax  at the rate of .... upon all persons
 4        engaged in the  business  of  selling  tangible  personal
 5        property  at  retail in the county on gross receipts from
 6        the sales made in the course of their business to be used
 7        for crime prevention, detention, and other public  safety
 8        purposes?"
 9             For  the  purposes  of the paragraph, "public safety
10        purposes"  means  crime   prevention,   detention,   fire
11        fighting,  police, medical, ambulance, or other emergency
12        services.
13             Votes shall be recorded as "Yes" or "No".
14             (2)  The  proposition  for  transportation  purposes
15        shall be in substantially the following form:
16             "Shall (name of county) be authorized  to  impose  a
17        tax at the rate of (insert rate) upon all persons engaged
18        in  the business of selling tangible personal property at
19        retail in the county on gross  receipts  from  the  sales
20        made  in  the  course  of  their  business to be used for
21        transportation purposes?
22             For the purposes of this  paragraph,  transportation
23        purposes  means construction, maintenance, operation, and
24        improvements of public highways.
25             The votes shall be recorded as "Yes" or "No".
26        If a majority of the electors voting on  the  proposition
27    vote in favor of it, the county may impose the tax.  A county
28    may  not  submit more than one proposition authorized by this
29    Section to the electors at any one time.
30        This additional tax may not be imposed on  the  sales  of
31    food  for  human  consumption  that is to be consumed off the
32    premises where it is sold (other  than  alcoholic  beverages,
33    soft  drinks,  and food which has been prepared for immediate
34    consumption) and prescription and non-prescription medicines,
 
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 1    drugs,  medical  appliances  and   insulin,   urine   testing
 2    materials,  syringes, and needles used by diabetics.  The tax
 3    imposed  by  a  county  under  this  Section  and  all  civil
 4    penalties that may be assessed as  an  incident  of  the  tax
 5    shall be collected and enforced by the Illinois Department of
 6    Revenue  and  deposited  into a special fund created for that
 7    purpose.  The certificate of registration that is  issued  by
 8    the  Department to a retailer under the Retailers' Occupation
 9    Tax Act shall permit the retailer to  engage  in  a  business
10    that  is  taxable  without  registering  separately  with the
11    Department  under  an  ordinance  or  resolution  under  this
12    Section.  The Department has full  power  to  administer  and
13    enforce  this Section, to collect all taxes and penalties due
14    under this Section, to dispose  of  taxes  and  penalties  so
15    collected  in  the  manner  provided  in this Section, and to
16    determine all rights to credit memoranda arising  on  account
17    of  the  erroneous  payment  of  a  tax or penalty under this
18    Section.  In the administration of and compliance  with  this
19    Section,  the  Department and persons who are subject to this
20    Section shall (i) have the same rights, remedies, privileges,
21    immunities, powers, and duties, (ii) be subject to  the  same
22    conditions,   restrictions,   limitations,   penalties,   and
23    definitions  of  terms,  and  (iii)  employ the same modes of
24    procedure as are prescribed in Sections 1, 1a, 1a-1, 1d,  1e,
25    1f,  1i,  1j,  1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to
26    all provisions contained in those  Sections  other  than  the
27    State  rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except
28    provisions  relating  to  transaction  returns  and   quarter
29    monthly  payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
30    5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12,  and  13
31    of  the  Retailers' Occupation Tax Act and Section 3-7 of the
32    Uniform Penalty and Interest Act as if those provisions  were
33    set forth in this Section.
34        Persons  subject  to  any tax imposed under the authority
 
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 1    granted in this Section may reimburse  themselves  for  their
 2    sellers'  tax  liability  by separately stating the tax as an
 3    additional charge, which charge may be stated in combination,
 4    in a single amount, with State tax which sellers are required
 5    to collect under the Use Tax Act, pursuant to such  bracketed
 6    schedules as the Department may prescribe.
 7        Whenever  the  Department determines that a refund should
 8    be made under this Section to a claimant instead of issuing a
 9    credit memorandum, the  Department  shall  notify  the  State
10    Comptroller,  who  shall  cause the order to be drawn for the
11    amount specified and to the person named in the  notification
12    from  the  Department.  The refund shall be paid by the State
13    Treasurer out of the County Public Safety  or  Transportation
14    Retailers' Occupation Tax Fund.
15        (b)  If  a  tax  has been imposed under subsection (a), a
16    service occupation tax shall also be imposed at the same rate
17    upon all persons engaged, in the county, in the  business  of
18    making  sales of service, who, as an incident to making those
19    sales of service, transfer tangible personal property  within
20    the  county as an incident to a sale of service. This tax may
21    not be imposed on sales of food for human consumption that is
22    to be consumed off the premises where it is sold (other  than
23    alcoholic  beverages,  soft  drinks,  and  food  prepared for
24    immediate consumption) and prescription and  non-prescription
25    medicines,  drugs,  medical  appliances  and  insulin,  urine
26    testing  materials,  syringes, and needles used by diabetics.
27    The tax imposed under this subsection and all civil penalties
28    that  may  be  assessed  as  an  incident  thereof  shall  be
29    collected and enforced by  the  Department  of  Revenue.  The
30    Department  has  full  power  to  administer and enforce this
31    subsection; to collect all taxes and penalties due hereunder;
32    to dispose of taxes and penalties so collected in the  manner
33    hereinafter  provided;  and to determine all rights to credit
34    memoranda arising on account of the erroneous payment of  tax
 
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 1    or   penalty  hereunder.    In  the  administration  of,  and
 2    compliance with this subsection, the Department  and  persons
 3    who  are  subject  to  this paragraph shall (i) have the same
 4    rights, remedies, privileges, immunities, powers, and duties,
 5    (ii)  be  subject  to  the  same  conditions,   restrictions,
 6    limitations,    penalties,    exclusions,   exemptions,   and
 7    definitions of terms, and (iii)  employ  the  same  modes  of
 8    procedure  as  are  prescribed in Sections 2 (except that the
 9    reference to State in the definition of supplier  maintaining
10    a place of business in this State shall mean the county), 2a,
11    2b,  2c, 3 through 3-50 (in respect to all provisions therein
12    other than the  State  rate  of  tax),  4  (except  that  the
13    reference  to  the  State  shall  be  to the county), 5, 7, 8
14    (except that the jurisdiction to which the  tax  shall  be  a
15    debt  to  the extent indicated in that Section 8 shall be the
16    county), 9  (except  as  to  the  disposition  of  taxes  and
17    penalties  collected),  10,  11,  12  (except  the  reference
18    therein  to Section 2b of the Retailers' Occupation Tax Act),
19    13 (except that any reference to the  State  shall  mean  the
20    county),  Section  15,  16,  17, 18, 19 and 20 of the Service
21    Occupation Tax Act and Section 3-7 of the Uniform Penalty and
22    Interest Act, as fully as if those provisions were set  forth
23    herein.
24        Persons  subject  to  any tax imposed under the authority
25    granted in this subsection may reimburse themselves for their
26    serviceman's tax liability by separately stating the  tax  as
27    an   additional   charge,  which  charge  may  be  stated  in
28    combination,  in  a  single  amount,  with  State  tax   that
29    servicemen  are  authorized  to collect under the Service Use
30    Tax Act, in accordance with such  bracket  schedules  as  the
31    Department may prescribe.
32        Whenever  the  Department determines that a refund should
33    be made under  this  subsection  to  a  claimant  instead  of
34    issuing  a credit memorandum, the Department shall notify the
 
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 1    State Comptroller, who shall cause the warrant  to  be  drawn
 2    for  the  amount  specified,  and to the person named, in the
 3    notification from the Department.  The refund shall  be  paid
 4    by  the  State  Treasurer  out of the County Public Safety or
 5    Transportation Retailers' Occupation Fund.
 6        Nothing  in  this  subsection  shall  be   construed   to
 7    authorize  the  county  to impose a tax upon the privilege of
 8    engaging in any business which under the Constitution of  the
 9    United  States may not be made the subject of taxation by the
10    State.
11        (c)  The Department shall immediately  pay  over  to  the
12    State  Treasurer,  ex  officio,  as  trustee,  all  taxes and
13    penalties collected under this Section to be  deposited  into
14    the   County   Public  Safety  or  Transportation  Retailers'
15    Occupation Tax Fund, which shall be an  unappropriated  trust
16    fund  held  outside  of the State treasury.  On or before the
17    25th day of each calendar month, the Department shall prepare
18    and certify to the Comptroller  the  disbursement  of  stated
19    sums  of money to the counties from which retailers have paid
20    taxes or  penalties  to  the  Department  during  the  second
21    preceding  calendar  month.   The  amount  to be paid to each
22    county, and deposited by the county  into  its  special  fund
23    created for the purposes of this Section, shall be the amount
24    (not including credit memoranda) collected under this Section
25    during  the second preceding calendar month by the Department
26    plus an amount the  Department  determines  is  necessary  to
27    offset  any amounts that were erroneously paid to a different
28    taxing body, and not including (i) an  amount  equal  to  the
29    amount  of  refunds made during the second preceding calendar
30    month by the Department on behalf of the county and (ii)  any
31    amount  that the Department determines is necessary to offset
32    any amounts that were payable to a different taxing body  but
33    were  erroneously  paid  to the county.  Within 10 days after
34    receipt by the Comptroller of the disbursement  certification
 
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 1    to  the  counties provided for in this Section to be given to
 2    the Comptroller by  the  Department,  the  Comptroller  shall
 3    cause  the  orders  to be drawn for the respective amounts in
 4    accordance with directions contained in the certification.
 5        In addition to the disbursement required by the preceding
 6    paragraph, an allocation shall be made in March of each  year
 7    to   each   county   that  received  more  than  $500,000  in
 8    disbursements under the preceding paragraph in the  preceding
 9    calendar year.  The allocation shall be in an amount equal to
10    the  average  monthly  distribution  made to each such county
11    under the preceding paragraph during the  preceding  calendar
12    year  (excluding  the  2  months  of  highest receipts).  The
13    distribution made in March of each  year  subsequent  to  the
14    year  in  which  an  allocation  was  made  pursuant  to this
15    paragraph and the preceding paragraph shall be reduced by the
16    amount allocated and disbursed under this  paragraph  in  the
17    preceding  calendar  year.   The Department shall prepare and
18    certify to the Comptroller for disbursement  the  allocations
19    made in accordance with this paragraph.
20        (d)  For   the   purpose   of   determining   the   local
21    governmental unit whose tax is applicable, a retail sale by a
22    producer  of  coal  or another mineral mined in Illinois is a
23    sale at retail at the place where the coal or  other  mineral
24    mined   in  Illinois  is  extracted  from  the  earth.   This
25    paragraph does not apply to coal or another mineral  when  it
26    is  delivered  or shipped by the seller to the purchaser at a
27    point outside Illinois so that the sale is exempt  under  the
28    United States Constitution as a sale in interstate or foreign
29    commerce.
30        (e)  Nothing  in  this  Section  shall  be  construed  to
31    authorize  a  county  to  impose  a tax upon the privilege of
32    engaging in any business that under the Constitution  of  the
33    United States may not be made the subject of taxation by this
34    State.
 
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 1        (e-5)  If  a county imposes a tax under this Section, the
 2    county board may, by ordinance, discontinue or lower the rate
 3    of the tax.  If the county  board  lowers  the  tax  rate  or
 4    discontinues the tax, a referendum must be held in accordance
 5    with  subsection (a) of this Section in order to increase the
 6    rate of the tax or to reimpose the discontinued tax.
 7        (f)  Beginning April 1, 1998, the results of any election
 8    authorizing a proposition to impose a tax under this  Section
 9    or  effecting  a  change in the rate of tax, or any ordinance
10    lowering  the  rate  or  discontinuing  the  tax,  shall   be
11    certified  by  the  county  clerk and filed with the Illinois
12    Department of Revenue either (i) on or before the  first  day
13    of   April,   whereupon   the  Department  shall  proceed  to
14    administer and enforce the tax as of the first  day  of  July
15    next following the filing; or (ii) on or before the first day
16    of   October,  whereupon  the  Department  shall  proceed  to
17    administer and enforce the tax as of the first day of January
18    next following the filing.
19        (g)  When certifying the amount of a monthly disbursement
20    to a county under this Section, the Department shall increase
21    or decrease the amounts by an amount necessary to offset  any
22    miscalculation  of previous disbursements.  The offset amount
23    shall be the amount erroneously disbursed within the previous
24    6 months from the time a miscalculation is discovered.
25        (h)  This Section may be cited  as  the  "Special  County
26    Occupation Tax For Public Safety or Transportation Law".
27        (i)  For   purposes  of  this  Section,  "public  safety"
28    includes, but is not limited to, crime prevention, detention,
29    fire fighting, police, medical, ambulance, or other emergency
30    services.  For the purposes of this Section, "transportation"
31    includes,  but  is  not   limited   to,   the   construction,
32    maintenance,  operation,  and  improvement of public highways
33    and any other purpose for which a  county  may  expend  funds
34    under the Illinois Highway Code.
 
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 1    (Source:  P.A.  89-107,  eff.  1-1-96;  89-718,  eff. 3-7-97;
 2    90-190, eff. 7-24-97;  90-267,  eff.  7-30-97;  90-552,  eff.
 3    12-12-97;   90-562,  eff.  12-16-97;  90-655,  eff.  7-30-98;
 4    90-689, eff. 7-31-98.)

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