97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3154

 

Introduced 2/24/2011, by Rep. Dwight Kay

 

SYNOPSIS AS INTRODUCED:
 
55 ILCS 5/5-1006.7

    Amends the Counties Code. Provides that the question to impose a school facility occupation tax shall not be submitted to the electors unless each school district that receives a disbursement of tax proceeds under this Section has legally bound itself to abate its taxes on real property by one dollar for each and every dollar of tax proceeds that it receives under this Section.


LRB097 09246 KMW 49381 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3154LRB097 09246 KMW 49381 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Counties Code is amended by changing Section
55-1006.7 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
9all persons engaged in the business of selling tangible
10personal property, other than personal property titled or
11registered with an agency of this State's government, at retail
12in the county on the gross receipts from the sales made in the
13course of business to provide revenue to be used exclusively
14for school facility purposes if a proposition for the tax has
15been submitted to the electors of that county and approved by a
16majority of those voting on the question as provided in
17subsection (c). The tax under this Section may be imposed only
18in one-quarter percent increments and may not exceed 1%.
19    This additional tax may not be imposed on the sale of food
20for human consumption that is to be consumed off the premises
21where it is sold (other than alcoholic beverages, soft drinks,
22and food that has been prepared for immediate consumption) and
23prescription and non-prescription medicines, drugs, medical

 

 

HB3154- 2 -LRB097 09246 KMW 49381 b

1appliances and insulin, urine testing materials, syringes and
2needles used by diabetics. The Department of Revenue has full
3power to administer and enforce this subsection, to collect all
4taxes and penalties due under this subsection, to dispose of
5taxes and penalties so collected in the manner provided in this
6subsection, and to determine all rights to credit memoranda
7arising on account of the erroneous payment of a tax or penalty
8under this subsection. The Department shall deposit all taxes
9and penalties collected under this subsection into a special
10fund created for that purpose.
11    In the administration of and compliance with this
12subsection, the Department and persons who are subject to this
13subsection (i) have the same rights, remedies, privileges,
14immunities, powers, and duties, (ii) are subject to the same
15conditions, restrictions, limitations, penalties, and
16definitions of terms, and (iii) shall employ the same modes of
17procedure as are set forth in Sections 1 through 1o, 2 through
182-70 (in respect to all provisions contained in those Sections
19other than the State rate of tax), 2a through 2h, 3 (except as
20to the disposition of taxes and penalties collected), 4, 5, 5a,
215b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8,
229, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
23and all provisions of the Uniform Penalty and Interest Act as
24if those provisions were set forth in this subsection.
25    The certificate of registration that is issued by the
26Department to a retailer under the Retailers' Occupation Tax

 

 

HB3154- 3 -LRB097 09246 KMW 49381 b

1Act permits the retailer to engage in a business that is
2taxable without registering separately with the Department
3under an ordinance or resolution under this subsection.
4    Persons subject to any tax imposed under the authority
5granted in this subsection may reimburse themselves for their
6seller's tax liability by separately stating that tax as an
7additional charge, which may be stated in combination, in a
8single amount, with State tax that sellers are required to
9collect under the Use Tax Act, pursuant to any bracketed
10schedules set forth by the Department.
11    (b) If a tax has been imposed under subsection (a), then a
12service occupation tax must also be imposed at the same rate
13upon all persons engaged, in the county, in the business of
14making sales of service, who, as an incident to making those
15sales of service, transfer tangible personal property within
16the county as an incident to a sale of service.
17    This tax may not be imposed on sales of food for human
18consumption that is to be consumed off the premises where it is
19sold (other than alcoholic beverages, soft drinks, and food
20prepared for immediate consumption) and prescription and
21non-prescription medicines, drugs, medical appliances and
22insulin, urine testing materials, syringes, and needles used by
23diabetics.
24    The tax imposed under this subsection and all civil
25penalties that may be assessed as an incident thereof shall be
26collected and enforced by the Department and deposited into a

 

 

HB3154- 4 -LRB097 09246 KMW 49381 b

1special fund created for that purpose. The Department has full
2power to administer and enforce this subsection, to collect all
3taxes and penalties due under this subsection, to dispose of
4taxes and penalties so collected in the manner provided in this
5subsection, and to determine all rights to credit memoranda
6arising on account of the erroneous payment of a tax or penalty
7under this subsection.
8    In the administration of and compliance with this
9subsection, the Department and persons who are subject to this
10subsection shall (i) have the same rights, remedies,
11privileges, immunities, powers and duties, (ii) be subject to
12the same conditions, restrictions, limitations, penalties and
13definition of terms, and (iii) employ the same modes of
14procedure as are set forth in Sections 2 (except that that
15reference to State in the definition of supplier maintaining a
16place of business in this State means the county), 2a through
172d, 3 through 3-50 (in respect to all provisions contained in
18those Sections other than the State rate of tax), 4 (except
19that the reference to the State shall be to the county), 5, 7,
208 (except that the jurisdiction to which the tax is a debt to
21the extent indicated in that Section 8 is the county), 9
22(except as to the disposition of taxes and penalties
23collected), 10, 11, 12 (except the reference therein to Section
242b of the Retailers' Occupation Tax Act), 13 (except that any
25reference to the State means the county), Section 15, 16, 17,
2618, 19, and 20 of the Service Occupation Tax Act and all

 

 

HB3154- 5 -LRB097 09246 KMW 49381 b

1provisions of the Uniform Penalty and Interest Act, as fully as
2if those provisions were set forth herein.
3    Persons subject to any tax imposed under the authority
4granted in this subsection may reimburse themselves for their
5serviceman's tax liability by separately stating the tax as an
6additional charge, which may be stated in combination, in a
7single amount, with State tax that servicemen are authorized to
8collect under the Service Use Tax Act, pursuant to any
9bracketed schedules set forth by the Department.
10    (c) The tax under this Section may not be imposed until, by
11ordinance or resolution of the county board, the question of
12imposing the tax has been submitted to the electors of the
13county at a regular election and approved by a majority of the
14electors voting on the question. Upon a resolution by the
15county board or a resolution by school district boards that
16represent at least 51% of the student enrollment within the
17county, the county board must certify the question to the
18proper election authority in accordance with the Election Code.
19The question shall not be submitted to the electors unless each
20school district that receives a disbursement of tax proceeds
21under this Section has legally bound itself to abate its taxes
22on real property by one dollar for each and every dollar of tax
23proceeds that it receives under this Section.
24    The election authority must submit the question in
25substantially the following form:
26        Shall (name of county) be authorized to impose a

 

 

HB3154- 6 -LRB097 09246 KMW 49381 b

1    retailers' occupation tax and a service occupation tax
2    (commonly referred to as a "sales tax") at a rate of
3    (insert rate) to be used exclusively for school facility
4    purposes?
5The election authority must record the votes as "Yes" or "No".
6    If a majority of the electors voting on the question vote
7in the affirmative, then the county may, thereafter, impose the
8tax.
9    For the purposes of this subsection (c), "enrollment" means
10the head count of the students residing in the county on the
11last school day of September of each year, which must be
12reported on the Illinois State Board of Education Public School
13Fall Enrollment/Housing Report.
14    (d) The Department shall immediately pay over to the State
15Treasurer, ex officio, as trustee, all taxes and penalties
16collected under this Section to be deposited into the School
17Facility Occupation Tax Fund, which shall be an unappropriated
18trust fund held outside the State treasury.
19    On or before the 25th day of each calendar month, the
20Department shall prepare and certify to the Comptroller the
21disbursement of stated sums of money to the regional
22superintendents of schools in counties from which retailers or
23servicemen have paid taxes or penalties to the Department
24during the second preceding calendar month. The amount to be
25paid to each regional superintendent of schools and disbursed
26to him or her in accordance with 3-14.31 of the School Code, is

 

 

HB3154- 7 -LRB097 09246 KMW 49381 b

1equal to the amount (not including credit memoranda) collected
2from the county under this Section during the second preceding
3calendar month by the Department, (i) less 2% of that amount,
4which shall be deposited into the Tax Compliance and
5Administration Fund and shall be used by the Department,
6subject to appropriation, to cover the costs of the Department
7in administering and enforcing the provisions of this Section,
8on behalf of the county, (ii) plus an amount that the
9Department determines is necessary to offset any amounts that
10were erroneously paid to a different taxing body; (iii) less an
11amount equal to the amount of refunds made during the second
12preceding calendar month by the Department on behalf of the
13county; and (iv) less any amount that the Department determines
14is necessary to offset any amounts that were payable to a
15different taxing body but were erroneously paid to the county.
16When certifying the amount of a monthly disbursement to a
17regional superintendent of schools under this Section, the
18Department shall increase or decrease the amounts by an amount
19necessary to offset any miscalculation of previous
20disbursements within the previous 6 months from the time a
21miscalculation is discovered.
22    Within 10 days after receipt by the Comptroller from the
23Department of the disbursement certification to the regional
24superintendents of the schools provided for in this Section,
25the Comptroller shall cause the orders to be drawn for the
26respective amounts in accordance with directions contained in

 

 

HB3154- 8 -LRB097 09246 KMW 49381 b

1the certification.
2    If the Department determines that a refund should be made
3under this Section to a claimant instead of issuing a credit
4memorandum, then the Department shall notify the Comptroller,
5who shall cause the order to be drawn for the amount specified
6and to the person named in the notification from the
7Department. The refund shall be paid by the Treasurer out of
8the School Facility Occupation Tax Fund.
9    (e) For the purposes of determining the local governmental
10unit whose tax is applicable, a retail sale by a producer of
11coal or another mineral mined in Illinois is a sale at retail
12at the place where the coal or other mineral mined in Illinois
13is extracted from the earth. This subsection does not apply to
14coal or another mineral when it is delivered or shipped by the
15seller to the purchaser at a point outside Illinois so that the
16sale is exempt under the United States Constitution as a sale
17in interstate or foreign commerce.
18    (f) Nothing in this Section may be construed to authorize a
19county board to impose a tax upon the privilege of engaging in
20any business that under the Constitution of the United States
21may not be made the subject of taxation by this State.
22    (g) If a county board imposes a tax under this Section,
23then the board may, by ordinance, discontinue or reduce the
24rate of the tax. If, however, a school board issues bonds that
25are backed by the proceeds of the tax under this Section, then
26the county board may not reduce the tax rate or discontinue the

 

 

HB3154- 9 -LRB097 09246 KMW 49381 b

1tax if that rate reduction or discontinuance would inhibit the
2school board's ability to pay the principal and interest on
3those bonds as they become due. If the county board reduces the
4tax rate or discontinues the tax, then a referendum must be
5held in accordance with subsection (c) of this Section in order
6to increase the rate of the tax or to reimpose the discontinued
7tax.
8    The results of any election that authorizes a proposition
9to impose a tax under this Section or to change the rate of the
10tax along with an ordinance imposing the tax, or any ordinance
11that lowers the rate or discontinues the tax, must be certified
12by the county clerk and filed with the Illinois Department of
13Revenue either (i) on or before the first day of April,
14whereupon the Department shall proceed to administer and
15enforce the tax or change in the rate as of the first day of
16July next following the filing; or (ii) on or before the first
17day of October, whereupon the Department shall proceed to
18administer and enforce the tax or change in the rate as of the
19first day of January next following the filing.
20    (h) For purposes of this Section, "school facility
21purposes" means the acquisition, development, construction,
22reconstruction, rehabilitation, improvement, financing,
23architectural planning, and installation of capital facilities
24consisting of buildings, structures, and durable equipment and
25for the acquisition and improvement of real property and
26interest in real property required, or expected to be required,

 

 

HB3154- 10 -LRB097 09246 KMW 49381 b

1in connection with the capital facilities. "School-facility
2purposes" also includes fire prevention, safety, energy
3conservation, disabled accessibility, school security, and
4specified repair purposes set forth under Section 17-2.11 of
5the School Code.
6    (i) This Section does not apply to Cook County.
7    (j) This Section may be cited as the County School Facility
8Occupation Tax Law.
9(Source: P.A. 95-675, eff. 10-11-07.)