093_SB0154enr

 
SB154 Enrolled                       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 for expenditures for public highways
23    or as authorized under the Illinois Highway Code, the  county
24    board  must publish notice of the existence of its long-range
25    highway transportation  plan  as  required  or  described  in
26    Section  5-301 of the Illinois Highway Code and must make the
27    plan publicly available prior to approval of the ordinance or
28    resolution imposing the  tax.  If  the  tax  is  imposed  for
29    transportation  purposes  for expenditures for passenger rail
30    transportation, the county board must publish notice  of  the
31    existence  of  its  long-range  passenger rail transportation
 
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 1    plan and must make  the  plan  publicly  available  prior  to
 2    approval of the ordinance or resolution imposing the tax. The
 3    county  clerk  shall  certify  the  question  to  the  proper
 4    election  authority,  who  shall submit the proposition at an
 5    election in accordance with the general election law.
 6             (1)  The  proposition  for  public  safety  purposes
 7        shall be in substantially the following form:
 8             "Shall (name of county) be authorized  to  impose  a
 9        public  safety  tax  at the rate of .... upon all persons
10        engaged in the  business  of  selling  tangible  personal
11        property  at  retail in the county on gross receipts from
12        the sales made in the course of their business to be used
13        for crime prevention, detention, and other public  safety
14        purposes?"
15             For  the  purposes  of the paragraph, "public safety
16        purposes"  means  crime   prevention,   detention,   fire
17        fighting,  police, medical, ambulance, or other emergency
18        services.
19             Votes shall be recorded as "Yes" or "No".
20             (2)  The  proposition  for  transportation  purposes
21        shall be in substantially the following form:
22             "Shall (name of county) be authorized  to  impose  a
23        tax at the rate of (insert rate) upon all persons engaged
24        in  the business of selling tangible personal property at
25        retail in the county on gross  receipts  from  the  sales
26        made  in  the  course  of  their  business to be used for
27        transportation purposes?
28             For the purposes of this  paragraph,  transportation
29        purposes  means construction, maintenance, operation, and
30        improvement of public highways,  any  other  purpose  for
31        which  a  county  may  expend  funds  under  the Illinois
32        Highway Code, and passenger rail transportation.
33             The votes shall be recorded as "Yes" or "No".
34        If a majority of the electors voting on  the  proposition
 
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 1    vote in favor of it, the county may impose the tax.  A county
 2    may  not  submit more than one proposition authorized by this
 3    Section to the electors at any one time.
 4        This additional tax may not be imposed on  the  sales  of
 5    food  for  human  consumption  that is to be consumed off the
 6    premises where it is sold (other  than  alcoholic  beverages,
 7    soft  drinks,  and food which has been prepared for immediate
 8    consumption) and prescription and non-prescription medicines,
 9    drugs,  medical  appliances  and   insulin,   urine   testing
10    materials,  syringes, and needles used by diabetics.  The tax
11    imposed  by  a  county  under  this  Section  and  all  civil
12    penalties that may be assessed as  an  incident  of  the  tax
13    shall be collected and enforced by the Illinois Department of
14    Revenue  and  deposited  into a special fund created for that
15    purpose.  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  or  Transportation
22    Retailers' 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.
 
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 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 or
13    Transportation 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  or  Transportation  Retailers'
23    Occupation Tax Fund, which shall be an  unappropriated  trust
24    fund  held  outside  of the State treasury.  On or before the
25    25th day of each calendar month, the Department shall prepare
26    and certify to the Comptroller  the  disbursement  of  stated
27    sums  of money to the counties from which retailers have paid
28    taxes or  penalties  to  the  Department  during  the  second
29    preceding  calendar  month.   The  amount  to be paid to each
30    county, and deposited by the county  into  its  special  fund
31    created for the purposes of this Section, shall be the amount
32    (not including credit memoranda) collected under this Section
33    during  the second preceding calendar month by the Department
34    plus an amount the  Department  determines  is  necessary  to
 
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 1    offset  any amounts that were erroneously paid to a different
 2    taxing body, and not including (i) an  amount  equal  to  the
 3    amount  of  refunds made during the second preceding calendar
 4    month by the Department on behalf of the county and (ii)  any
 5    amount  that the Department determines is necessary to offset
 6    any amounts that were payable to a different taxing body  but
 7    were  erroneously  paid  to the county.  Within 10 days after
 8    receipt by the Comptroller of the disbursement  certification
 9    to  the  counties provided for in this Section to be given to
10    the Comptroller by  the  Department,  the  Comptroller  shall
11    cause  the  orders  to be drawn for the respective amounts in
12    accordance with directions contained in the certification.
13        In addition to the disbursement required by the preceding
14    paragraph, an allocation shall be made in March of each  year
15    to   each   county   that  received  more  than  $500,000  in
16    disbursements under the preceding paragraph in the  preceding
17    calendar year.  The allocation shall be in an amount equal to
18    the  average  monthly  distribution  made to each such county
19    under the preceding paragraph during the  preceding  calendar
20    year  (excluding  the  2  months  of  highest receipts).  The
21    distribution made in March of each  year  subsequent  to  the
22    year  in  which  an  allocation  was  made  pursuant  to this
23    paragraph and the preceding paragraph shall be reduced by the
24    amount allocated and disbursed under this  paragraph  in  the
25    preceding  calendar  year.   The Department shall prepare and
26    certify to the Comptroller for disbursement  the  allocations
27    made in accordance with this paragraph.
28        (d)  For   the   purpose   of   determining   the   local
29    governmental unit whose tax is applicable, a retail sale by a
30    producer  of  coal  or another mineral mined in Illinois is a
31    sale at retail at the place where the coal or  other  mineral
32    mined   in  Illinois  is  extracted  from  the  earth.   This
33    paragraph does not apply to coal or another mineral  when  it
34    is  delivered  or shipped by the seller to the purchaser at a
 
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 1    point outside Illinois so that the sale is exempt  under  the
 2    United States Constitution as a sale in interstate or foreign
 3    commerce.
 4        (e)  Nothing  in  this  Section  shall  be  construed  to
 5    authorize  a  county  to  impose  a tax upon the privilege of
 6    engaging in any business that under the Constitution  of  the
 7    United States may not be made the subject of taxation by this
 8    State.
 9        (e-5)  If  a county imposes a tax under this Section, the
10    county board may, by ordinance, discontinue or lower the rate
11    of the tax.  If the county  board  lowers  the  tax  rate  or
12    discontinues the tax, a referendum must be held in accordance
13    with  subsection (a) of this Section in order to increase the
14    rate of the tax or to reimpose the discontinued tax.
15        (f)  Beginning April 1, 1998, the results of any election
16    authorizing a proposition to impose a tax under this  Section
17    or  effecting  a  change in the rate of tax, or any ordinance
18    lowering  the  rate  or  discontinuing  the  tax,  shall   be
19    certified  by  the  county  clerk and filed with the Illinois
20    Department of Revenue either (i) on or before the  first  day
21    of   April,   whereupon   the  Department  shall  proceed  to
22    administer and enforce the tax as of the first  day  of  July
23    next following the filing; or (ii) on or before the first day
24    of   October,  whereupon  the  Department  shall  proceed  to
25    administer and enforce the tax as of the first day of January
26    next following the filing.
27        (g)  When certifying the amount of a monthly disbursement
28    to a county under this Section, the Department shall increase
29    or decrease the amounts by an amount necessary to offset  any
30    miscalculation  of previous disbursements.  The offset amount
31    shall be the amount erroneously disbursed within the previous
32    6 months from the time a miscalculation is discovered.
33        (h)  This Section may be cited  as  the  "Special  County
34    Occupation Tax For Public Safety or Transportation Law".
 
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 1        (i)  For   purposes  of  this  Section,  "public  safety"
 2    includes, but is not limited to, crime prevention, detention,
 3    fire fighting, police, medical, ambulance, or other emergency
 4    services.  For the purposes of this Section, "transportation"
 5    includes,  but  is  not   limited   to,   the   construction,
 6    maintenance,  operation,  and improvement of public highways,
 7    any other purpose for which a county may expend  funds  under
 8    the Illinois Highway Code, and passenger rail transportation.
 9    (Source:  P.A.  89-107,  eff.  1-1-96;  89-718,  eff. 3-7-97;
10    90-190, eff. 7-24-97;  90-267,  eff.  7-30-97;  90-552,  eff.
11    12-12-97;   90-562,  eff.  12-16-97;  90-655,  eff.  7-30-98;
12    90-689, eff. 7-31-98.)

13        Section 99.  Effective date.  This Act takes effect  upon
14    becoming law.