Full Text of HB0473 96th General Assembly
HB0473eng 96TH GENERAL ASSEMBLY
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| AN ACT concerning local government.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Counties Code is amended by changing Section | 5 |
| 5-1006.7 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 | 9 |
| all persons engaged in the business of selling tangible | 10 |
| personal property, other than personal property titled or | 11 |
| registered with an agency of this State's government, at retail | 12 |
| in the county on the gross receipts from the sales made in the | 13 |
| course of business to provide revenue to be used exclusively | 14 |
| for school facility purposes , or municipal infrastructure | 15 |
| purposes as provided in subsection (h-5) of this Section, 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 as provided in subsection (c). The tax under this | 19 |
| Section may be imposed only in one-quarter percent increments | 20 |
| and may not exceed 1%. | 21 |
| This additional tax may not be imposed on the sale of food | 22 |
| for human consumption that is to be consumed off the premises | 23 |
| where it is sold (other than alcoholic beverages, soft drinks, |
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| and food that has been prepared for immediate consumption) and | 2 |
| prescription and non-prescription medicines, drugs, medical | 3 |
| appliances and insulin, urine testing materials, syringes and | 4 |
| needles used by diabetics.
The Department of Revenue has full | 5 |
| power to administer and enforce this subsection, to collect all | 6 |
| taxes and penalties due under this subsection, to dispose of | 7 |
| taxes and penalties so collected in the manner provided in this | 8 |
| subsection, and to determine all rights to credit memoranda | 9 |
| arising on account of the erroneous payment of a tax or penalty | 10 |
| under this subsection. The Department shall deposit all taxes | 11 |
| and penalties collected under this subsection into a special | 12 |
| fund created for that purpose. | 13 |
| In the administration of and compliance with this | 14 |
| subsection, the Department and persons who are subject to this | 15 |
| subsection (i) have the same rights, remedies, privileges, | 16 |
| immunities, powers, and duties, (ii) are subject to the same | 17 |
| conditions, restrictions, limitations, penalties, and | 18 |
| definitions of terms, and (iii) shall employ the same modes of | 19 |
| procedure as are set forth in Sections 1 through 1o, 2 through | 20 |
| 2-70 (in respect to all provisions contained in those Sections | 21 |
| other than the State rate of tax), 2a through 2h, 3 (except as | 22 |
| to the disposition of taxes and penalties collected), 4, 5, 5a, | 23 |
| 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, | 24 |
| 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act | 25 |
| and all provisions of the Uniform Penalty and Interest Act as | 26 |
| if those provisions were set forth in this subsection. |
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| The certificate of registration that is issued by the | 2 |
| Department to a retailer under the Retailers' Occupation Tax | 3 |
| Act permits the retailer to engage in a business that is | 4 |
| taxable without registering separately with the Department | 5 |
| under an ordinance or resolution under this subsection. | 6 |
| Persons subject to any tax imposed under the authority | 7 |
| granted in this subsection may reimburse themselves for their | 8 |
| seller's tax liability by separately stating that tax as an | 9 |
| additional charge, which may be stated in combination, in a | 10 |
| single amount, with State tax that sellers are required to | 11 |
| collect under the Use Tax Act, pursuant to any bracketed | 12 |
| schedules set forth by the Department. | 13 |
| (b) If a tax has been imposed under subsection (a), then a | 14 |
| service occupation tax must also be imposed at the same rate | 15 |
| upon all persons engaged, in the county, in the business of | 16 |
| making sales of service, who, as an incident to making those | 17 |
| sales of service, transfer tangible personal property within | 18 |
| the county as an incident to a sale of service. | 19 |
| This tax may not be imposed on sales of food for human | 20 |
| consumption that is to be consumed off the premises where it is | 21 |
| sold (other than alcoholic beverages, soft drinks, and food | 22 |
| prepared for immediate consumption) and prescription and | 23 |
| non-prescription medicines, drugs, medical appliances and | 24 |
| insulin, urine testing materials, syringes, and needles used by | 25 |
| diabetics. | 26 |
| The tax imposed under this subsection and all civil |
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| penalties that may be assessed as an incident thereof shall be | 2 |
| collected and enforced by the Department and deposited into a | 3 |
| special fund created for that purpose. The Department has full | 4 |
| power to administer and enforce this subsection, to collect all | 5 |
| taxes and penalties due under this subsection, to dispose of | 6 |
| taxes and penalties so collected in the manner provided in this | 7 |
| subsection, and to determine all rights to credit memoranda | 8 |
| arising on account of the erroneous payment of a tax or penalty | 9 |
| under this subsection. | 10 |
| In the administration of and compliance with this | 11 |
| subsection, the Department and persons who are subject to this | 12 |
| subsection shall (i) have the same rights, remedies, | 13 |
| privileges, immunities, powers and duties, (ii) be subject to | 14 |
| the same conditions, restrictions, limitations, penalties and | 15 |
| definition of terms, and (iii) employ the same modes of | 16 |
| procedure as are set forth in Sections 2 (except that that | 17 |
| reference to State in the definition of supplier maintaining a | 18 |
| place of business in this State means the county), 2a through | 19 |
| 2d, 3 through 3-50 (in respect to all provisions contained in | 20 |
| those Sections other than the State rate of tax), 4 (except | 21 |
| that the reference to the State shall be to the county), 5, 7, | 22 |
| 8 (except that the jurisdiction to which the tax is a debt to | 23 |
| the extent indicated in that Section 8 is the county), 9 | 24 |
| (except as to the disposition of taxes and penalties | 25 |
| collected), 10, 11, 12 (except the reference therein to Section | 26 |
| 2b of the Retailers' Occupation Tax Act), 13 (except that any |
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| reference to the State means the county), Section 15, 16, 17, | 2 |
| 18, 19, and 20 of the Service Occupation Tax Act and all | 3 |
| provisions of the Uniform Penalty and Interest Act, as fully as | 4 |
| if those provisions were set forth herein. | 5 |
| Persons subject to any tax imposed under the authority | 6 |
| granted in this subsection may reimburse themselves for their | 7 |
| serviceman's tax liability by separately stating the tax as an | 8 |
| additional charge, which may be stated in combination, in a | 9 |
| single amount, with State tax that servicemen are authorized to | 10 |
| collect under the Service Use Tax Act, pursuant to any | 11 |
| bracketed schedules set forth by the Department. | 12 |
| (c) The tax under this Section may not be imposed until, by | 13 |
| ordinance or resolution of the county board, the question of | 14 |
| imposing the tax has been submitted to the electors of the | 15 |
| county at a regular election and approved by a majority of the | 16 |
| electors voting on the question. Upon a resolution by the | 17 |
| county board or a resolution by school district boards that | 18 |
| represent at least 51% of the student enrollment within the | 19 |
| county, the county board must certify the question to the | 20 |
| proper election authority in accordance with the Election Code. | 21 |
| The election authority must submit the question in | 22 |
| substantially the following form: | 23 |
| Shall (name of county) be authorized to impose a | 24 |
| retailers' occupation tax and a service occupation tax | 25 |
| (commonly referred to as a "sales tax") at a rate of | 26 |
| (insert rate) to be used exclusively for school facility |
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| purposes? | 2 |
| The election authority must record the votes as "Yes" or "No". | 3 |
| If a majority of the electors voting on the question vote | 4 |
| in the affirmative, then the county may, thereafter, impose the | 5 |
| tax. | 6 |
| For the purposes of this subsection (c), "enrollment" means | 7 |
| the head count of the students residing in the county on the | 8 |
| last school day of September of each year, which must be | 9 |
| reported on the Illinois State Board of Education Public School | 10 |
| Fall Enrollment/Housing Report.
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| (d) The Department shall immediately pay over to the State | 12 |
| Treasurer, ex officio, as trustee, all taxes and penalties | 13 |
| collected under this Section to be deposited into the School | 14 |
| Facility Occupation Tax Fund, which shall be an unappropriated | 15 |
| trust fund held outside the State treasury. | 16 |
| On or before the 25th day of each calendar month, the | 17 |
| Department shall prepare and certify to the Comptroller the | 18 |
| disbursement of stated sums of money to the regional | 19 |
| superintendents of schools in counties from which retailers or | 20 |
| servicemen have paid taxes or penalties to the Department | 21 |
| during the second preceding calendar month. The amount to be | 22 |
| paid to each regional superintendent of schools and disbursed | 23 |
| to him or her in accordance with 3-14.31 of the School Code, is | 24 |
| equal to the amount (not including credit memoranda) collected | 25 |
| from the county under this Section during the second preceding | 26 |
| calendar month by the Department, (i) less 2% of that amount, |
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| which shall be deposited into the Tax Compliance and | 2 |
| Administration Fund and shall be used by the Department, | 3 |
| subject to appropriation, to cover the costs of the Department | 4 |
| in administering and enforcing the provisions of this Section, | 5 |
| on behalf of the county, (ii) plus an amount that the | 6 |
| Department determines is necessary to offset any amounts that | 7 |
| were erroneously paid to a different taxing body; (iii) less an | 8 |
| amount equal to the amount of refunds made during the second | 9 |
| preceding calendar month by the Department on behalf of the | 10 |
| county; and (iv) less any amount that the Department determines | 11 |
| is necessary to offset any amounts that were payable to a | 12 |
| different taxing body but were erroneously paid to the county. | 13 |
| When certifying the amount of a monthly disbursement to a | 14 |
| regional superintendent of schools under this Section, the | 15 |
| Department shall increase or decrease the amounts by an amount | 16 |
| necessary to offset any miscalculation of previous | 17 |
| disbursements within the previous 6 months from the time a | 18 |
| miscalculation is discovered. | 19 |
| Within 10 days after receipt by the Comptroller from the | 20 |
| Department of the disbursement certification to the regional | 21 |
| superintendents of the schools provided for in this Section, | 22 |
| the Comptroller shall cause the orders to be drawn for the | 23 |
| respective amounts in accordance with directions contained in | 24 |
| the certification. | 25 |
| If the Department determines that a refund should be made | 26 |
| under this Section to a claimant instead of issuing a credit |
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| memorandum, then the Department shall notify the Comptroller, | 2 |
| who shall cause the order to be drawn for the amount specified | 3 |
| and to the person named in the notification from the | 4 |
| Department. The refund shall be paid by the Treasurer out of | 5 |
| the School Facility Occupation Tax Fund.
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| (e) For the purposes of determining the local governmental | 7 |
| unit whose tax is applicable, a retail sale by a producer of | 8 |
| coal or another mineral mined in Illinois is a sale at retail | 9 |
| at the place where the coal or other mineral mined in Illinois | 10 |
| is extracted from the earth. This subsection does not apply to | 11 |
| coal or another mineral when it is delivered or shipped by the | 12 |
| seller to the purchaser at a point outside Illinois so that the | 13 |
| sale is exempt under the United States Constitution as a sale | 14 |
| in interstate or foreign commerce. | 15 |
| (f) Nothing in this Section may be construed to authorize a | 16 |
| county board to impose a tax upon the privilege of engaging in | 17 |
| any business that under the Constitution of the United States | 18 |
| may not be made the subject of taxation by this State. | 19 |
| (g) If a county board imposes a tax under this Section, | 20 |
| then the board may, by ordinance, discontinue or reduce the | 21 |
| rate of the tax. If, however, a school board issues bonds that | 22 |
| are backed by the proceeds of the tax under this Section, then | 23 |
| the county board may not reduce the tax rate or discontinue the | 24 |
| tax if that rate reduction or discontinuance would inhibit the | 25 |
| school board's ability to pay the principal and interest on | 26 |
| those bonds as they become due. If the county board reduces the |
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| tax rate or discontinues the tax, then a referendum must be | 2 |
| held in accordance with subsection (c) of this Section in order | 3 |
| to increase the rate of the tax or to reimpose the discontinued | 4 |
| tax. | 5 |
| The results of any election that authorizes a proposition | 6 |
| to impose a tax under this Section or to change the rate of the | 7 |
| tax along with an ordinance imposing the tax, or any ordinance | 8 |
| that lowers the rate or discontinues the tax, must be certified | 9 |
| by the county clerk and filed with the Illinois Department of | 10 |
| Revenue either (i) on or before the first day of April, | 11 |
| whereupon the Department shall proceed to administer and | 12 |
| enforce the tax or change in the rate as of the first day of | 13 |
| July next following the filing; or (ii) on or before the first | 14 |
| day of October, whereupon the Department shall proceed to | 15 |
| administer and enforce the tax or change in the rate as of the | 16 |
| first day of January next following the filing. | 17 |
| (h) For purposes of this Section, "school facility | 18 |
| purposes" means the acquisition, development, construction, | 19 |
| reconstruction, rehabilitation, improvement, financing, | 20 |
| architectural planning, and installation of capital facilities | 21 |
| consisting of buildings, structures, and durable equipment and | 22 |
| for the acquisition and improvement of real property and | 23 |
| interest in real property required, or expected to be required, | 24 |
| in connection with the capital facilities. "School-facility | 25 |
| purposes" also includes fire prevention, safety, energy | 26 |
| conservation, disabled accessibility, school security, and |
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| specified repair purposes set forth under Section 17-2.11 of | 2 |
| the School Code. | 3 |
| (h-5) Any school district that receives proceeds from a tax | 4 |
| imposed under this Section may enter into an intergovernmental | 5 |
| agreement with a municipality that is located, in whole or in | 6 |
| part, within the boundaries of the district to share all or a | 7 |
| part of the proceeds distributed to the school district under | 8 |
| Section 3-14.31 of the School Code. The municipality may use | 9 |
| its share of the proceeds only for municipal infrastructure | 10 |
| purposes. Before entering into an agreement under this Section | 11 |
| the school board shall, by resolution, cause the question to be | 12 |
| submitted to the voters residing in the district at an election | 13 |
| held in accordance with the general election law. The question | 14 |
| shall be in substantially the following form: | 15 |
| "Shall (school district) be authorized to enter into an | 16 |
| intergovernmental agreement with (municipality) to share | 17 |
| the district's school facility occupation tax proceeds?" | 18 |
| If a majority of the electors voting on the question vote | 19 |
| in the affirmative, then the district may enter into the | 20 |
| agreement. | 21 |
| (i) This Section does not apply to Cook County. | 22 |
| (j) This Section may be cited as the County School Facility | 23 |
| Occupation Tax Law.
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| (Source: P.A. 95-675, eff. 10-11-07.) | 25 |
| Section 10. The School Code is amended by changing Section |
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| 3-14.31 as follows: | 2 |
| (105 ILCS 5/3-14.31)
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| Sec. 3-14.31. School facility occupation tax proceeds. | 4 |
| (a) Within 30 days after receiving any proceeds of a school | 5 |
| facility occupation tax under Section 5-1006.7 of the Counties | 6 |
| Code, each regional superintendent must disburse those | 7 |
| proceeds to each school district that is located in the county | 8 |
| in which the tax was collected. | 9 |
| (b) The proceeds must be disbursed on an enrollment basis | 10 |
| and allocated based upon the number of each school district's | 11 |
| resident pupils that reside within the county collecting the | 12 |
| tax divided by the total number of resident students within the | 13 |
| county.
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| (c) A school district that receives a distribution under | 15 |
| this Section may enter into an intergovernmental agreement as | 16 |
| authorized in subsection (h-5) of Section 5-1006.7 of the | 17 |
| Counties Code. | 18 |
| (Source: P.A. 95-675, eff. 10-11-07; 95-850, eff. 1-1-09.)
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| Section 99. Effective date. This Act takes effect upon | 20 |
| becoming law.
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