HB4940 EngrossedLRB097 18481 HLH 63712 b

1    AN ACT concerning revenue.
 
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) In any county, a tax shall be imposed upon all persons
9engaged in the business of selling tangible personal property,
10other than personal property titled or registered with an
11agency of this State's government, at retail in the county on
12the gross receipts from the sales made in the course of
13business to provide revenue to be used exclusively for school
14facility purposes if a proposition for the tax has been
15submitted 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 shall be imposed
18only in 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

 

 

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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

 

 

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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

 

 

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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

 

 

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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 the
11question of imposing the tax has been submitted to the electors
12of the county at a regular election and approved by a majority
13of the electors voting on the question. For all regular
14elections held prior to August 23, 2011 the effective date of
15this amendatory Act of the 97th General Assembly, upon a
16resolution by the county board or a resolution by school
17district boards that represent at least 51% of the student
18enrollment within the county, the county board must certify the
19question to the proper election authority in accordance with
20the Election Code.
21    For all regular elections held prior to August 23, 2011 the
22effective date of this amendatory Act of the 97th General
23Assembly, the election authority must submit the question in
24substantially the following form:
25        Shall (name of county) be authorized to impose a
26    retailers' occupation tax and a service occupation tax

 

 

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1    (commonly referred to as a "sales tax") at a rate of
2    (insert rate) to be used exclusively for school facility
3    purposes?
4The election authority must record the votes as "Yes" or "No".
5    If a majority of the electors voting on the question vote
6in the affirmative, then the county may, thereafter, impose the
7tax. If a county board imposes a tax under this Section
8pursuant to a referendum held before August 23, 2011 at a rate
9below the rate set forth in the question approved by a majority
10of electors of that county voting on the question as provided
11in subsection (c), then, notwithstanding the imposition of the
12tax by the county board at such rate, beginning on the January
131 or July 1 as set forth in subsection (g), the tax shall be
14imposed at the rate set forth in the question approved by a
15majority of electors of that county.
16    For all regular elections held on or after August 23, 2011
17the effective date of this amendatory Act of the 97th General
18Assembly, the regional superintendent of schools for the county
19must, upon receipt of a resolution or resolutions of school
20district boards that represent more than 50% of the student
21enrollment within the county, certify the question to the
22proper election authority for submission to the electors of the
23county at the next regular election at which the question
24lawfully may be submitted to the electors, all in accordance
25with the Election Code.
26    For all regular elections held on or after August 23, 2011

 

 

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1the effective date of this amendatory Act of the 97th General
2Assembly, the election authority must submit the question in
3substantially the following form:
4        Shall a retailers' occupation tax and a service
5    occupation tax (commonly referred to as a "sales tax") be
6    imposed in (name of county) at a rate of (insert rate) to
7    be used exclusively for school facility purposes?
8The election authority must record the votes as "Yes" or "No".
9    If a majority of the electors voting on the question vote
10in the affirmative, then the tax shall be imposed at the rate
11set forth in the question.
12    For the purposes of this subsection (c), "enrollment" means
13the head count of the students residing in the county on the
14last school day of September of each year, which must be
15reported on the Illinois State Board of Education Public School
16Fall Enrollment/Housing Report.
17    (d) The Department shall immediately pay over to the State
18Treasurer, ex officio, as trustee, all taxes and penalties
19collected under this Section to be deposited into the School
20Facility Occupation Tax Fund, which shall be an unappropriated
21trust fund held outside the State treasury.
22    On or before the 25th day of each calendar month, the
23Department shall prepare and certify to the Comptroller the
24disbursement of stated sums of money to the regional
25superintendents of schools in counties from which retailers or
26servicemen have paid taxes or penalties to the Department

 

 

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1during the second preceding calendar month. The amount to be
2paid to each regional superintendent of schools and disbursed
3to him or her in accordance with Section 3-14.31 of the School
4Code, is equal to the amount (not including credit memoranda)
5collected from the county under this Section during the second
6preceding calendar month by the Department, (i) less 2% of that
7amount, which shall be deposited into the Tax Compliance and
8Administration Fund and shall be used by the Department,
9subject to appropriation, to cover the costs of the Department
10in administering and enforcing the provisions of this Section,
11on behalf of the county, (ii) plus an amount that the
12Department determines is necessary to offset any amounts that
13were erroneously paid to a different taxing body; (iii) less an
14amount equal to the amount of refunds made during the second
15preceding calendar month by the Department on behalf of the
16county; and (iv) less any amount that the Department determines
17is necessary to offset any amounts that were payable to a
18different taxing body but were erroneously paid to the county.
19When certifying the amount of a monthly disbursement to a
20regional superintendent of schools under this Section, the
21Department shall increase or decrease the amounts by an amount
22necessary to offset any miscalculation of previous
23disbursements within the previous 6 months from the time a
24miscalculation is discovered.
25    Within 10 days after receipt by the Comptroller from the
26Department of the disbursement certification to the regional

 

 

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

 

 

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1amendatory Act of the 97th General Assembly at a rate below the
2rate set forth in the question approved by a majority of
3electors of that county voting on the question as provided in
4subsection (c), then the county board may, by ordinance,
5increase the rate of the tax up to the rate set forth in the
6question approved by a majority of electors of that county
7voting on the question as provided in subsection (c). If a
8county board imposes a tax under this Section pursuant to a
9referendum held before August 23, 2011 at the rate set forth in
10the question approved by a majority of electors of that county
11voting on the question as provided in subsection (c), the
12effective date of this amendatory Act of the 97th General
13Assembly, then the board may, by ordinance, discontinue or
14reduce the rate of the tax. If a county board imposes a tax
15under this Section pursuant to a referendum held before August
1623, 2011 at a rate below the rate set forth in the question
17approved by a majority of electors of that county voting on the
18question as provided in subsection (c), and the tax is then
19increased by this amendatory Act of the 97th General Assembly
20to the rate set forth in the question, then the county board
21may reduce or discontinue the tax, but only in accordance with
22subsection h-5 of this Section. If a tax is imposed under this
23Section pursuant to a referendum held on or after August 23,
242011 the effective date of this amendatory Act of the 97th
25General Assembly, then the county board may reduce or
26discontinue the tax, but only in accordance with subsection

 

 

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1(h-5) of this Section. If, however, a school board issues bonds
2that are secured by the proceeds of the tax under this Section,
3then the county board may not reduce the tax rate or
4discontinue the tax if that rate reduction or discontinuance
5would adversely affect the school board's ability to pay the
6principal and interest on those bonds as they become due or
7necessitate the extension of additional property taxes to pay
8the principal and interest on those bonds. If the county board
9reduces the tax rate or discontinues the tax, then a referendum
10must be held in accordance with subsection (c) of this Section
11in order to increase the rate of the tax or to reimpose the
12discontinued tax.
13    The results of any election that imposes, reduces, or
14discontinues a tax under this Section must be certified by the
15election authority, and any ordinance that increases or lowers
16the rate or discontinues the tax must be certified by the
17county clerk and, in each case, filed with the Illinois
18Department of Revenue either (i) on or before the first day of
19April, whereupon the Department shall proceed to administer and
20enforce the tax or change in the rate as of the first day of
21July next following the filing; or (ii) on or before the first
22day of October, whereupon the Department shall proceed to
23administer and enforce the tax or change in the rate as of the
24first day of January next following the filing. In any county
25where the rate of the tax is increased pursuant to subsection
26(c) of this Section, and the effective date of this amendatory

 

 

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1Act of the 97th General Assembly is on or before the first day
2of April, then the Department shall proceed to administer and
3enforce the change in the rate of the tax beginning on the
4first day of July after the effective date of this amendatory
5Act of the 97th General Assembly. In any county where the rate
6of the tax is increased pursuant to subsection (c) of this
7Section, and the effective date of this amendatory Act of the
897th General Assembly is on or before the first day of October,
9then the Department shall proceed to administer and enforce the
10change in the rate of the tax beginning on the first day of
11January after the effective date of this amendatory Act of the
1297th General Assembly.
13    (h) For purposes of this Section, "school facility
14purposes" means (i) the acquisition, development,
15construction, reconstruction, rehabilitation, improvement,
16financing, architectural planning, and installation of capital
17facilities consisting of buildings, structures, and durable
18equipment and for the acquisition and improvement of real
19property and interest in real property required, or expected to
20be required, in connection with the capital facilities and (ii)
21the payment of bonds or other obligations heretofore or
22hereafter issued, including bonds or other obligations
23heretofore or hereafter issued to refund or to continue to
24refund bonds or other obligations issued, for school facility
25purposes, provided that the taxes levied to pay those bonds are
26abated by the amount of the taxes imposed under this Section

 

 

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1that are used to pay those bonds. "School-facility purposes"
2also includes fire prevention, safety, energy conservation,
3disabled accessibility, school security, and specified repair
4purposes set forth under Section 17-2.11 of the School Code.
5    (h-5) A county board in a county where a tax has been (i)
6imposed under this Section pursuant to a referendum held on or
7after August 23, 2011, or (ii) increased pursuant to this
8amendatory Act of the 97th General Assembly the effective date
9of this amendatory Act of the 97th General Assembly may, by
10ordinance or resolution, submit to the voters of the county the
11question of reducing or discontinuing the tax. In the ordinance
12or resolution, the county board shall certify the question to
13the proper election authority in accordance with the Election
14Code. The election authority must submit the question in
15substantially the following form:
16        Shall the school facility retailers' occupation tax
17    and service occupation tax (commonly referred to as the
18    "school facility sales tax") currently imposed in (name of
19    county) at a rate of (insert rate) be (reduced to (insert
20    rate))(discontinued)?
21If a majority of the electors voting on the question vote in
22the affirmative, then, subject to the provisions of subsection
23(g) of this Section, the tax shall be reduced or discontinued
24as set forth in the question.
25    (i) This Section does not apply to Cook County.
26    (j) This Section may be cited as the County School Facility

 

 

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1Occupation Tax Law.
2(Source: P.A. 97-542, eff. 8-23-11; revised 11-18-11.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.