Illinois General Assembly - Full Text of SB0580
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Full Text of SB0580  96th General Assembly

SB0580sam004 96TH GENERAL ASSEMBLY

Sen. Dan Cronin

Filed: 4/14/2010

 

 


 

 


 
09600SB0580sam004 LRB096 06644 RLJ 39965 a

1
AMENDMENT TO SENATE BILL 580

2     AMENDMENT NO. ______. Amend Senate Bill 580, AS AMENDED,
3 with reference to page and line numbers of Senate Amendment No.
4 3, on page 28, by replacing line 9 with the following:
5 "changing Section 4 and by adding Sections 0.001 and 0.001a as
6 follows"; and
 
7 on page 29, immediately below line 4, by inserting the
8 following:
 
9     "(70 ILCS 3720/4)  (from Ch. 111 2/3, par. 254)
10     Sec. 4. Taxes.
11     (a) The board of commissioners of any county water
12 commission may, by ordinance, impose throughout the territory
13 of the commission any or all of the taxes provided in this
14 Section for its corporate purposes. On and after the effective
15 date of this amendatory Act of the 96th General Assembly, all
16 taxes imposed pursuant to this Section shall be used

 

 

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1 exclusively for capital infrastructure and related costs.
2 However, no county water commission may impose any such tax
3 unless the commission certifies the proposition of imposing the
4 tax to the proper election officials, who shall submit the
5 proposition to the voters residing in the territory at an
6 election in accordance with the general election law, and the
7 proposition has been approved by a majority of those voting on
8 the proposition.
9     The proposition shall be in the form provided in Section 5
10 or shall be substantially in the following form:
11 -------------------------------------------------------------
12     Shall the (insert corporate
13 name of county water commission)           YES
14 impose (state type of tax or         ------------------------
15 taxes to be imposed) at the                NO
16 rate of 1/4%?
17 -------------------------------------------------------------
18     Taxes imposed under this Section and civil penalties
19 imposed incident thereto shall be collected and enforced by the
20 State Department of Revenue. The Department shall have the
21 power to administer and enforce the taxes and to determine all
22 rights for refunds for erroneous payments of the taxes.
23     (b) The board of commissioners may impose a County Water
24 Commission Retailers' Occupation Tax upon all persons engaged
25 in the business of selling tangible personal property at retail
26 in the territory of the commission at a rate of 1/4% of the

 

 

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1 gross receipts from the sales made in the course of such
2 business within the territory. The tax imposed under this
3 paragraph and all civil penalties that may be assessed as an
4 incident thereof shall be collected and enforced by the State
5 Department of Revenue. The Department shall have full power to
6 administer and enforce this paragraph; to collect all taxes and
7 penalties due hereunder; to dispose of taxes and penalties so
8 collected in the manner hereinafter provided; and to determine
9 all rights to credit memoranda arising on account of the
10 erroneous payment of tax or penalty hereunder. In the
11 administration of, and compliance with, this paragraph, the
12 Department and persons who are subject to this paragraph shall
13 have the same rights, remedies, privileges, immunities, powers
14 and duties, and be subject to the same conditions,
15 restrictions, limitations, penalties, exclusions, exemptions
16 and definitions of terms, and employ the same modes of
17 procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
18 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
19 therein other than the State rate of tax except that food for
20 human consumption that is to be consumed off the premises where
21 it is sold (other than alcoholic beverages, soft drinks, and
22 food that has been prepared for immediate consumption) and
23 prescription and nonprescription medicine, drugs, medical
24 appliances and insulin, urine testing materials, syringes, and
25 needles used by diabetics, for human use, shall not be subject
26 to tax hereunder), 2c, 3 (except as to the disposition of taxes

 

 

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1 and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
2 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
3 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
4 Penalty and Interest Act, as fully as if those provisions were
5 set forth herein.
6     Persons subject to any tax imposed under the authority
7 granted in this paragraph may reimburse themselves for their
8 seller's tax liability hereunder by separately stating the tax
9 as an additional charge, which charge may be stated in
10 combination, in a single amount, with State taxes that sellers
11 are required to collect under the Use Tax Act and under
12 subsection (e) of Section 4.03 of the Regional Transportation
13 Authority Act, in accordance with such bracket schedules as the
14 Department may prescribe.
15     Whenever the Department determines that a refund should be
16 made under this paragraph to a claimant instead of issuing a
17 credit memorandum, the Department shall notify the State
18 Comptroller, who shall cause the warrant 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 a county water commission tax fund established
22 under paragraph (g) of this Section.
23     For the purpose of determining whether a tax authorized
24 under this paragraph is applicable, a retail sale by a producer
25 of coal or other mineral mined in Illinois is a sale at retail
26 at the place where the coal or other mineral mined in Illinois

 

 

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1 is extracted from the earth. This paragraph does not apply to
2 coal or other mineral when it is delivered or shipped by the
3 seller to the purchaser at a point outside Illinois so that the
4 sale is exempt under the Federal Constitution as a sale in
5 interstate or foreign commerce.
6     If a tax is imposed under this subsection (b) a tax shall
7 also be imposed under subsections (c) and (d) of this Section.
8     No tax shall be imposed or collected under this subsection
9 on the sale of a motor vehicle in this State to a resident of
10 another state if that motor vehicle will not be titled in this
11 State.
12     Nothing in this paragraph shall be construed to authorize a
13 county water commission to impose a tax upon the privilege of
14 engaging in any business which under the Constitution of the
15 United States may not be made the subject of taxation by this
16 State.
17     (c) If a tax has been imposed under subsection (b), a
18 County Water Commission Service Occupation Tax shall also be
19 imposed upon all persons engaged, in the territory of the
20 commission, in the business of making sales of service, who, as
21 an incident to making the sales of service, transfer tangible
22 personal property within the territory. The tax rate shall be
23 1/4% of the selling price of tangible personal property so
24 transferred within the territory. The tax imposed under this
25 paragraph and all civil penalties that may be assessed as an
26 incident thereof shall be collected and enforced by the State

 

 

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1 Department of Revenue. The Department shall have full power to
2 administer and enforce this paragraph; to collect all taxes and
3 penalties due hereunder; to dispose of taxes and penalties so
4 collected in the manner hereinafter provided; and to determine
5 all rights to credit memoranda arising on account of the
6 erroneous payment of tax or penalty hereunder. In the
7 administration of, and compliance with, this paragraph, the
8 Department and persons who are subject to this paragraph shall
9 have the same rights, remedies, privileges, immunities, powers
10 and duties, and be subject to the same conditions,
11 restrictions, limitations, penalties, exclusions, exemptions
12 and definitions of terms, and employ the same modes of
13 procedure, as are prescribed in Sections 1a-1, 2 (except that
14 the reference to State in the definition of supplier
15 maintaining a place of business in this State shall mean the
16 territory of the commission), 2a, 3 through 3-50 (in respect to
17 all provisions therein other than the State rate of tax except
18 that food for human consumption that is to be consumed off the
19 premises where it is sold (other than alcoholic beverages, soft
20 drinks, and food that has been prepared for immediate
21 consumption) and prescription and nonprescription medicines,
22 drugs, medical appliances and insulin, urine testing
23 materials, syringes, and needles used by diabetics, for human
24 use, shall not be subject to tax hereunder), 4 (except that the
25 reference to the State shall be to the territory of the
26 commission), 5, 7, 8 (except that the jurisdiction to which the

 

 

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1 tax shall be a debt to the extent indicated in that Section 8
2 shall be the commission), 9 (except as to the disposition of
3 taxes and penalties collected and except that the returned
4 merchandise credit for this tax may not be taken against any
5 State tax), 10, 11, 12 (except the reference therein to Section
6 2b of the Retailers' Occupation Tax Act), 13 (except that any
7 reference to the State shall mean the territory of the
8 commission), the first paragraph of Section 15, 15.5, 16, 17,
9 18, 19 and 20 of the Service Occupation Tax Act as fully as if
10 those provisions were set forth herein.
11     Persons subject to any tax imposed under the authority
12 granted in this paragraph may reimburse themselves for their
13 serviceman's tax liability hereunder by separately stating the
14 tax as an additional charge, which charge may be stated in
15 combination, in a single amount, with State tax that servicemen
16 are authorized to collect under the Service Use Tax Act, and
17 any tax for which servicemen may be liable under subsection (f)
18 of Sec. 4.03 of the Regional Transportation Authority Act, in
19 accordance with such bracket schedules as the Department may
20 prescribe.
21     Whenever the Department determines that a refund should be
22 made under this paragraph to a claimant instead of issuing a
23 credit memorandum, the Department shall notify the State
24 Comptroller, who shall cause the warrant to be drawn for the
25 amount specified, and to the person named, in the notification
26 from the Department. The refund shall be paid by the State

 

 

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1 Treasurer out of a county water commission tax fund established
2 under paragraph (g) of this Section.
3     Nothing in this paragraph shall be construed to authorize a
4 county water commission to impose a tax upon the privilege of
5 engaging in any business which under the Constitution of the
6 United States may not be made the subject of taxation by the
7 State.
8     (d) If a tax has been imposed under subsection (b), a tax
9 shall also imposed upon the privilege of using, in the
10 territory of the commission, any item of tangible personal
11 property that is purchased outside the territory at retail from
12 a retailer, and that is titled or registered with an agency of
13 this State's government, at a rate of 1/4% of the selling price
14 of the tangible personal property within the territory, as
15 "selling price" is defined in the Use Tax Act. The tax shall be
16 collected from persons whose Illinois address for titling or
17 registration purposes is given as being in the territory. The
18 tax shall be collected by the Department of Revenue for a
19 county water commission. The tax must be paid to the State, or
20 an exemption determination must be obtained from the Department
21 of Revenue, before the title or certificate of registration for
22 the property may be issued. The tax or proof of exemption may
23 be transmitted to the Department by way of the State agency
24 with which, or the State officer with whom, the tangible
25 personal property must be titled or registered if the
26 Department and the State agency or State officer determine that

 

 

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1 this procedure will expedite the processing of applications for
2 title or registration.
3     The Department shall have full power to administer and
4 enforce this paragraph; to collect all taxes, penalties and
5 interest due hereunder; to dispose of taxes, penalties and
6 interest so collected in the manner hereinafter provided; and
7 to determine all rights to credit memoranda or refunds arising
8 on account of the erroneous payment of tax, penalty or interest
9 hereunder. In the administration of, and compliance with this
10 paragraph, the Department and persons who are subject to this
11 paragraph shall have the same rights, remedies, privileges,
12 immunities, powers and duties, and be subject to the same
13 conditions, restrictions, limitations, penalties, exclusions,
14 exemptions and definitions of terms and employ the same modes
15 of procedure, as are prescribed in Sections 2 (except the
16 definition of "retailer maintaining a place of business in this
17 State"), 3 through 3-80 (except provisions pertaining to the
18 State rate of tax, and except provisions concerning collection
19 or refunding of the tax by retailers, and except that food for
20 human consumption that is to be consumed off the premises where
21 it is sold (other than alcoholic beverages, soft drinks, and
22 food that has been prepared for immediate consumption) and
23 prescription and nonprescription medicines, drugs, medical
24 appliances and insulin, urine testing materials, syringes, and
25 needles used by diabetics, for human use, shall not be subject
26 to tax hereunder), 4, 11, 12, 12a, 14, 15, 19 (except the

 

 

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1 portions pertaining to claims by retailers and except the last
2 paragraph concerning refunds), 20, 21 and 22 of the Use Tax Act
3 and Section 3-7 of the Uniform Penalty and Interest Act that
4 are not inconsistent with this paragraph, as fully as if those
5 provisions were set forth herein.
6     Whenever the Department determines that a refund should be
7 made under this paragraph to a claimant instead of issuing a
8 credit memorandum, the Department shall notify the State
9 Comptroller, who shall cause the order to be drawn for the
10 amount specified, and to the person named, in the notification
11 from the Department. The refund shall be paid by the State
12 Treasurer out of a county water commission tax fund established
13 under paragraph (g) of this Section.
14     (e) A certificate of registration issued by the State
15 Department of Revenue to a retailer under the Retailers'
16 Occupation Tax Act or under the Service Occupation Tax Act
17 shall permit the registrant to engage in a business that is
18 taxed under the tax imposed under paragraphs (b), (c) or (d) of
19 this Section and no additional registration shall be required
20 under the tax. A certificate issued under the Use Tax Act or
21 the Service Use Tax Act shall be applicable with regard to any
22 tax imposed under paragraph (c) of this Section.
23     (f) Any ordinance imposing or discontinuing any tax under
24 this Section shall be adopted and a certified copy thereof
25 filed with the Department on or before June 1, whereupon the
26 Department of Revenue shall proceed to administer and enforce

 

 

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1 this Section on behalf of the county water commission as of
2 September 1 next following the adoption and filing. Beginning
3 January 1, 1992, an ordinance or resolution imposing or
4 discontinuing the tax hereunder shall be adopted and a
5 certified copy thereof filed with the Department on or before
6 the first day of July, whereupon the Department shall proceed
7 to administer and enforce this Section as of the first day of
8 October next following such adoption and filing. Beginning
9 January 1, 1993, an ordinance or resolution imposing or
10 discontinuing the tax hereunder shall be adopted and a
11 certified copy thereof filed with the Department on or before
12 the first day of October, whereupon the Department shall
13 proceed to administer and enforce this Section as of the first
14 day of January next following such adoption and filing.
15     (g) The State Department of Revenue shall, upon collecting
16 any taxes as provided in this Section, pay the taxes over to
17 the State Treasurer as trustee for the commission. The taxes
18 shall be held in a trust fund outside the State Treasury. On or
19 before the 25th day of each calendar month, the State
20 Department of Revenue shall prepare and certify to the
21 Comptroller of the State of Illinois the amount to be paid to
22 the commission, which shall be the then balance in the fund,
23 less any amount determined by the Department to be necessary
24 for the payment of refunds. Within 10 days after receipt by the
25 Comptroller of the certification of the amount to be paid to
26 the commission, the Comptroller shall cause an order to be

 

 

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1 drawn for the payment for the amount in accordance with the
2 direction in the certification.
3     (h) If, on or after January 1, 2014, the proceeds from a
4 tax imposed pursuant to this Section are not fully used for
5 capital infrastructure and related costs, then the county may
6 no longer impose or collect that tax.
7 (Source: P.A. 92-221, eff. 8-2-01; 93-1068, eff. 1-15-05.)".