HB0220enr 99TH GENERAL ASSEMBLY

  
  
  

 


 
HB0220 EnrolledLRB099 03556 AWJ 23564 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 3. The Counties Code is amended by changing Section
55-1006.5 as follows:
 
6    (55 ILCS 5/5-1006.5)
7    Sec. 5-1006.5. Special County Retailers' Occupation Tax
8For Public Safety, Public Facilities, or Transportation.
9    (a) The county board of any county may impose a tax upon
10all persons engaged in the business of selling tangible
11personal property, other than personal property titled or
12registered with an agency of this State's government, at retail
13in the county on the gross receipts from the sales made in the
14course of business to provide revenue to be used exclusively
15for public safety, public facility, or transportation purposes
16in that county, if a proposition for the tax has been submitted
17to the electors of that county and approved by a majority of
18those voting on the question. If imposed, this tax shall be
19imposed only in one-quarter percent increments. By resolution,
20the county board may order the proposition to be submitted at
21any election. If the tax is imposed for transportation purposes
22for expenditures for public highways or as authorized under the
23Illinois Highway Code, the county board must publish notice of

 

 

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1the existence of its long-range highway transportation plan as
2required or described in Section 5-301 of the Illinois Highway
3Code and must make the plan publicly available prior to
4approval of the ordinance or resolution imposing the tax. If
5the tax is imposed for transportation purposes for expenditures
6for passenger rail transportation, the county board must
7publish notice of the existence of its long-range passenger
8rail transportation plan and must make the plan publicly
9available prior to approval of the ordinance or resolution
10imposing the tax.
11    If a tax is imposed for public facilities purposes, then
12the name of the project may be included in the proposition at
13the discretion of the county board as determined in the
14enabling resolution. For example, the "XXX Nursing Home" or the
15"YYY Museum".
16    The county clerk shall certify the question to the proper
17election authority, who shall submit the proposition at an
18election in accordance with the general election law.
19        (1) The proposition for public safety purposes shall be
20    in substantially the following form:
21        "To pay for public safety purposes, shall (name of
22    county) be authorized to impose an increase on its share of
23    local sales taxes by (insert rate)?"
24        As additional information on the ballot below the
25    question shall appear the following:
26        "This would mean that a consumer would pay an

 

 

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1    additional (insert amount) in sales tax for every $100 of
2    tangible personal property bought at retail."
3        The county board may also opt to establish a sunset
4    provision at which time the additional sales tax would
5    cease being collected, if not terminated earlier by a vote
6    of the county board. If the county board votes to include a
7    sunset provision, the proposition for public safety
8    purposes shall be in substantially the following form:
9        "To pay for public safety purposes, shall (name of
10    county) be authorized to impose an increase on its share of
11    local sales taxes by (insert rate) for a period not to
12    exceed (insert number of years)?"
13        As additional information on the ballot below the
14    question shall appear the following:
15        "This would mean that a consumer would pay an
16    additional (insert amount) in sales tax for every $100 of
17    tangible personal property bought at retail. If imposed,
18    the additional tax would cease being collected at the end
19    of (insert number of years), if not terminated earlier by a
20    vote of the county board."
21        For the purposes of the paragraph, "public safety
22    purposes" means crime prevention, detention, fire
23    fighting, police, medical, ambulance, or other emergency
24    services.
25        Votes shall be recorded as "Yes" or "No".
26    Beginning on the January 1 or July 1, whichever is first,

 

 

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1that occurs not less than 30 days after the effective date of
2this amendatory Act of the 99th General Assembly, Adams County
3may impose a public safety retailers' occupation tax and
4service occupation tax at the rate of 0.25%, as provided in the
5referendum approved by the voters on April 7, 2015,
6notwithstanding the omission of the additional information
7that is otherwise required to be printed on the ballot below
8the question pursuant to this item (1).
9        (2) The proposition for transportation purposes shall
10    be in substantially the following form:
11        "To pay for improvements to roads and other
12    transportation purposes, shall (name of county) be
13    authorized to impose an increase on its share of local
14    sales taxes by (insert rate)?"
15        As additional information on the ballot below the
16    question shall appear the following:
17        "This would mean that a consumer would pay an
18    additional (insert amount) in sales tax for every $100 of
19    tangible personal property bought at retail."
20        The county board may also opt to establish a sunset
21    provision at which time the additional sales tax would
22    cease being collected, if not terminated earlier by a vote
23    of the county board. If the county board votes to include a
24    sunset provision, the proposition for transportation
25    purposes shall be in substantially the following form:
26        "To pay for road improvements and other transportation

 

 

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1    purposes, shall (name of county) be authorized to impose an
2    increase on its share of local sales taxes by (insert rate)
3    for a period not to exceed (insert number of years)?"
4        As additional information on the ballot below the
5    question shall appear the following:
6        "This would mean that a consumer would pay an
7    additional (insert amount) in sales tax for every $100 of
8    tangible personal property bought at retail. If imposed,
9    the additional tax would cease being collected at the end
10    of (insert number of years), if not terminated earlier by a
11    vote of the county board."
12        For the purposes of this paragraph, transportation
13    purposes means construction, maintenance, operation, and
14    improvement of public highways, any other purpose for which
15    a county may expend funds under the Illinois Highway Code,
16    and passenger rail transportation.
17        The votes shall be recorded as "Yes" or "No".
18        (3) The proposition for public facilities purposes
19    shall be in substantially the following form:
20        "To pay for public facilities purposes, shall (name of
21    county) be authorized to impose an increase on its share of
22    local sales taxes by (insert rate)?"
23        As additional information on the ballot below the
24    question shall appear the following:
25        "This would mean that a consumer would pay an
26    additional (insert amount) in sales tax for every $100 of

 

 

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1    tangible personal property bought at retail."
2        The county board may also opt to establish a sunset
3    provision at which time the additional sales tax would
4    cease being collected, if not terminated earlier by a vote
5    of the county board. If the county board votes to include a
6    sunset provision, the proposition for public facilities
7    purposes shall be in substantially the following form:
8        "To pay for public facilities purposes, shall (name of
9    county) be authorized to impose an increase on its share of
10    local sales taxes by (insert rate) for a period not to
11    exceed (insert number of years)?"
12        As additional information on the ballot below the
13    question shall appear the following:
14        "This would mean that a consumer would pay an
15    additional (insert amount) in sales tax for every $100 of
16    tangible personal property bought at retail. If imposed,
17    the additional tax would cease being collected at the end
18    of (insert number of years), if not terminated earlier by a
19    vote of the county board."
20        For purposes of this Section, "public facilities
21    purposes" means the acquisition, development,
22    construction, reconstruction, rehabilitation, improvement,
23    financing, architectural planning, and installation of
24    capital facilities consisting of buildings, structures,
25    and durable equipment and for the acquisition and
26    improvement of real property and interest in real property

 

 

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1    required, or expected to be required, in connection with
2    the public facilities, for use by the county for the
3    furnishing of governmental services to its citizens,
4    including but not limited to museums and nursing homes.
5        The votes shall be recorded as "Yes" or "No".
6    If a majority of the electors voting on the proposition
7vote in favor of it, the county may impose the tax. A county
8may not submit more than one proposition authorized by this
9Section to the electors at any one time.
10    This additional tax may not be imposed on the sales of food
11for human consumption that is to be consumed off the premises
12where it is sold (other than alcoholic beverages, soft drinks,
13and food which has been prepared for immediate consumption) and
14prescription and non-prescription medicines, drugs, medical
15appliances and insulin, urine testing materials, syringes, and
16needles used by diabetics. The tax imposed by a county under
17this Section and all civil penalties that may be assessed as an
18incident of the tax shall be collected and enforced by the
19Illinois Department of Revenue and deposited into a special
20fund created for that purpose. The certificate of registration
21that is issued by the Department to a retailer under the
22Retailers' Occupation Tax Act shall permit the retailer to
23engage in a business that is taxable without registering
24separately with the Department under an ordinance or resolution
25under this Section. The Department has full power to administer
26and enforce this Section, to collect all taxes and penalties

 

 

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1due under this Section, to dispose of taxes and penalties so
2collected in the manner provided in this Section, and to
3determine all rights to credit memoranda arising on account of
4the erroneous payment of a tax or penalty under this Section.
5In the administration of and compliance with this Section, the
6Department and persons who are subject to this Section shall
7(i) have the same rights, remedies, privileges, immunities,
8powers, and duties, (ii) be subject to the same conditions,
9restrictions, limitations, penalties, and definitions of
10terms, and (iii) employ the same modes of procedure as are
11prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
121n, 2 through 2-70 (in respect to all provisions contained in
13those Sections other than the State rate of tax), 2a, 2b, 2c, 3
14(except provisions relating to transaction returns and quarter
15monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
165j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of
17the Retailers' Occupation Tax Act and Section 3-7 of the
18Uniform Penalty and Interest Act as if those provisions were
19set forth in this Section.
20    Persons subject to any tax imposed under the authority
21granted in this Section may reimburse themselves for their
22sellers' tax liability by separately stating the tax as an
23additional charge, which charge may be stated in combination,
24in a single amount, with State tax which sellers are required
25to collect under the Use Tax Act, pursuant to such bracketed
26schedules as the Department may prescribe.

 

 

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1    Whenever the Department determines that a refund should be
2made under this Section to a claimant instead of issuing a
3credit memorandum, the Department shall notify the State
4Comptroller, who shall cause the order to be drawn for the
5amount specified and to the person named in the notification
6from the Department. The refund shall be paid by the State
7Treasurer out of the County Public Safety or Transportation
8Retailers' Occupation Tax Fund.
9    (b) If a tax has been imposed under subsection (a), a
10service occupation tax shall also be imposed at the same rate
11upon all persons engaged, in the county, in the business of
12making sales of service, who, as an incident to making those
13sales of service, transfer tangible personal property within
14the county as an incident to a sale of service. This tax may
15not be imposed on sales of food for human consumption that is
16to be consumed off the premises where it is sold (other than
17alcoholic beverages, soft drinks, and food prepared for
18immediate consumption) and prescription and non-prescription
19medicines, drugs, medical appliances and insulin, urine
20testing materials, syringes, and needles used by diabetics. The
21tax imposed under this subsection and all civil penalties that
22may be assessed as an incident thereof shall be collected and
23enforced by the Department of Revenue. The Department has full
24power to administer and enforce this subsection; to collect all
25taxes and penalties due hereunder; to dispose of taxes and
26penalties so collected in the manner hereinafter provided; and

 

 

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1to determine all rights to credit memoranda arising on account
2of the erroneous payment of tax or penalty hereunder. In the
3administration of, and compliance with this subsection, the
4Department and persons who are subject to this paragraph shall
5(i) have the same rights, remedies, privileges, immunities,
6powers, and duties, (ii) be subject to the same conditions,
7restrictions, limitations, penalties, exclusions, exemptions,
8and definitions of terms, and (iii) employ the same modes of
9procedure as are prescribed in Sections 2 (except that the
10reference to State in the definition of supplier maintaining a
11place of business in this State shall mean the county), 2a, 2b,
122c, 3 through 3-50 (in respect to all provisions therein other
13than the State rate of tax), 4 (except that the reference to
14the State shall be to the county), 5, 7, 8 (except that the
15jurisdiction to which the tax shall be a debt to the extent
16indicated in that Section 8 shall be the county), 9 (except as
17to the disposition of taxes and penalties collected), 10, 11,
1812 (except the reference therein to Section 2b of the
19Retailers' Occupation Tax Act), 13 (except that any reference
20to the State shall mean the county), Section 15, 16, 17, 18, 19
21and 20 of the Service Occupation Tax Act and Section 3-7 of the
22Uniform Penalty and Interest Act, as fully as if those
23provisions were set forth herein.
24    Persons subject to any tax imposed under the authority
25granted in this subsection may reimburse themselves for their
26serviceman's tax liability by separately stating the tax as an

 

 

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1additional charge, which charge may be stated in combination,
2in a single amount, with State tax that servicemen are
3authorized to collect under the Service Use Tax Act, in
4accordance with such bracket schedules as the Department may
5prescribe.
6    Whenever the Department determines that a refund should be
7made under this subsection to a claimant instead of issuing a
8credit memorandum, the Department shall notify the State
9Comptroller, who shall cause the warrant to be drawn for the
10amount specified, and to the person named, in the notification
11from the Department. The refund shall be paid by the State
12Treasurer out of the County Public Safety or Transportation
13Retailers' Occupation Fund.
14    Nothing in this subsection shall be construed to authorize
15the county to impose a tax upon the privilege of engaging in
16any business which under the Constitution of the United States
17may not be made the subject of taxation by the State.
18    (c) The Department shall immediately pay over to the State
19Treasurer, ex officio, as trustee, all taxes and penalties
20collected under this Section to be deposited into the County
21Public Safety or Transportation Retailers' Occupation Tax
22Fund, which shall be an unappropriated trust fund held outside
23of the State treasury.
24    As soon as possible after the first day of each month,
25beginning January 1, 2011, upon certification of the Department
26of Revenue, the Comptroller shall order transferred, and the

 

 

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1Treasurer shall transfer, to the STAR Bonds Revenue Fund the
2local sales tax increment, as defined in the Innovation
3Development and Economy Act, collected under this Section
4during the second preceding calendar month for sales within a
5STAR bond district.
6    After the monthly transfer to the STAR Bonds Revenue Fund,
7on or before the 25th day of each calendar month, the
8Department shall prepare and certify to the Comptroller the
9disbursement of stated sums of money to the counties from which
10retailers have paid taxes or penalties to the Department during
11the second preceding calendar month. The amount to be paid to
12each county, and deposited by the county into its special fund
13created for the purposes of this Section, shall be the amount
14(not including credit memoranda) collected under this Section
15during the second preceding calendar month by the Department
16plus an amount the Department determines is necessary to offset
17any amounts that were erroneously paid to a different taxing
18body, and not including (i) an amount equal to the amount of
19refunds made during the second preceding calendar month by the
20Department on behalf of the county, (ii) any amount that the
21Department determines is necessary to offset any amounts that
22were payable to a different taxing body but were erroneously
23paid to the county, and (iii) any amounts that are transferred
24to the STAR Bonds Revenue Fund. Within 10 days after receipt by
25the Comptroller of the disbursement certification to the
26counties provided for in this Section to be given to the

 

 

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1Comptroller by the Department, the Comptroller shall cause the
2orders to be drawn for the respective amounts in accordance
3with directions contained in the certification.
4    In addition to the disbursement required by the preceding
5paragraph, an allocation shall be made in March of each year to
6each county that received more than $500,000 in disbursements
7under the preceding paragraph in the preceding calendar year.
8The allocation shall be in an amount equal to the average
9monthly distribution made to each such county under the
10preceding paragraph during the preceding calendar year
11(excluding the 2 months of highest receipts). The distribution
12made in March of each year subsequent to the year in which an
13allocation was made pursuant to this paragraph and the
14preceding paragraph shall be reduced by the amount allocated
15and disbursed under this paragraph in the preceding calendar
16year. The Department shall prepare and certify to the
17Comptroller for disbursement the allocations made in
18accordance with this paragraph.
19    A county may direct, by ordinance, that all or a portion of
20the taxes and penalties collected under the Special County
21Retailers' Occupation Tax For Public Safety or Transportation
22be deposited into the Transportation Development Partnership
23Trust Fund.
24    (d) For the purpose of determining the local governmental
25unit whose tax is applicable, a retail sale by a producer of
26coal or another mineral mined in Illinois is a sale at retail

 

 

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1at the place where the coal or other mineral mined in Illinois
2is extracted from the earth. This paragraph does not apply to
3coal or another mineral when it is delivered or shipped by the
4seller to the purchaser at a point outside Illinois so that the
5sale is exempt under the United States Constitution as a sale
6in interstate or foreign commerce.
7    (e) Nothing in this Section shall be construed to authorize
8a county to impose a tax upon the privilege of engaging in any
9business that under the Constitution of the United States may
10not be made the subject of taxation by this State.
11    (e-5) If a county imposes a tax under this Section, the
12county board may, by ordinance, discontinue or lower the rate
13of the tax. If the county board lowers the tax rate or
14discontinues the tax, a referendum must be held in accordance
15with subsection (a) of this Section in order to increase the
16rate of the tax or to reimpose the discontinued tax.
17    (f) Beginning April 1, 1998 and through December 31, 2013,
18the results of any election authorizing a proposition to impose
19a tax under this Section or effecting a change in the rate of
20tax, or any ordinance lowering the rate or discontinuing the
21tax, shall be certified by the county clerk and filed with the
22Illinois Department of Revenue either (i) on or before the
23first day of April, whereupon the Department shall proceed to
24administer and enforce the tax as of the first day of July next
25following the filing; or (ii) on or before the first day of
26October, whereupon the Department shall proceed to administer

 

 

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1and enforce the tax as of the first day of January next
2following the filing.
3    Beginning January 1, 2014, the results of any election
4authorizing a proposition to impose a tax under this Section or
5effecting an increase in the rate of tax, along with the
6ordinance adopted to impose the tax or increase the rate of the
7tax, or any ordinance adopted to lower the rate or discontinue
8the tax, shall be certified by the county clerk and filed with
9the Illinois Department of Revenue either (i) on or before the
10first day of May, whereupon the Department shall proceed to
11administer and enforce the tax as of the first day of July next
12following the adoption and filing; or (ii) on or before the
13first day of October, whereupon the Department shall proceed to
14administer and enforce the tax as of the first day of January
15next following the adoption and filing.
16    (g) When certifying the amount of a monthly disbursement to
17a county under this Section, the Department shall increase or
18decrease the amounts by an amount necessary to offset any
19miscalculation of previous disbursements. The offset amount
20shall be the amount erroneously disbursed within the previous 6
21months from the time a miscalculation is discovered.
22    (h) This Section may be cited as the "Special County
23Occupation Tax For Public Safety, Public Facilities, or
24Transportation Law".
25    (i) For purposes of this Section, "public safety" includes,
26but is not limited to, crime prevention, detention, fire

 

 

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1fighting, police, medical, ambulance, or other emergency
2services. The county may share tax proceeds received under this
3Section for public safety purposes, including proceeds
4received before August 4, 2009 (the effective date of Public
5Act 96-124), with any fire protection district located in the
6county. For the purposes of this Section, "transportation"
7includes, but is not limited to, the construction, maintenance,
8operation, and improvement of public highways, any other
9purpose for which a county may expend funds under the Illinois
10Highway Code, and passenger rail transportation. For the
11purposes of this Section, "public facilities purposes"
12includes, but is not limited to, the acquisition, development,
13construction, reconstruction, rehabilitation, improvement,
14financing, architectural planning, and installation of capital
15facilities consisting of buildings, structures, and durable
16equipment and for the acquisition and improvement of real
17property and interest in real property required, or expected to
18be required, in connection with the public facilities, for use
19by the county for the furnishing of governmental services to
20its citizens, including but not limited to museums and nursing
21homes.
22    (j) The Department may promulgate rules to implement Public
23Act 95-1002 only to the extent necessary to apply the existing
24rules for the Special County Retailers' Occupation Tax for
25Public Safety to this new purpose for public facilities.
26(Source: P.A. 98-584, eff. 8-27-13.)
 

 

 

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1    Section 5. The Fire Protection District Act is amended by
2changing Section 24 as follows:
 
3    (70 ILCS 705/24)  (from Ch. 127 1/2, par. 38.7)
4    Sec. 24. (a) In addition to any other tax authorized by
5law, the board of trustees of a fire protection district may,
6subject to the requirements of subsections subsection (b) and
7(c), by ordinance levy a special annual tax at a rate not
8exceeding .10% .05% of the value, as equalized or assessed by
9the Department of Revenue, of all taxable property within the
10district, for the purpose of obtaining funds to pay for the
11costs of emergency and rescue crews and equipment.
12    (b) Whenever the board of trustees of a fire protection
13district desires to levy a special tax under this Section, it
14shall certify the question to the proper election officials,
15who shall submit that question at an election to the voters of
16the district in accordance with the general election law. The
17result of such referendum shall be entered upon the records of
18the district. If a majority of the votes on the proposition are
19in favor of such proposition, the board of trustees may
20thereafter levy a special tax under this Section at a rate not
21to exceed .05% of the value of all taxable property within the
22district as equalized or assessed by the Department of Revenue.
23The proposition shall be in substantially the following form:
24-------------------------------------------------------------

 

 

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1    Shall the ....... Fire Protection
2District levy a special tax at a rate
3not to exceed .05% of the value of           YES
4all taxable property within the
5district as equalized or assessed       ---------------------
6by the Department of Revenue for
7the purpose of providing funds               NO
8to pay for the costs of emergency
9and rescue crews and equipment?
10-------------------------------------------------------------
11    (c) Whenever the board of trustees of a fire protection
12district which levies a tax under this Section desires to
13increase the tax rate limit set forth under subsection (b), it
14shall certify the question to the proper election officials,
15who shall submit that question at an election to the voters of
16the district in accordance with the general election law. The
17result of such referendum shall be entered upon the records of
18the district. If a majority of the votes on the proposition are
19in favor of such proposition, the board of trustees may
20thereafter levy a special tax under this Section at a rate not
21to exceed .10% of the value of all taxable property within the
22district as equalized or assessed by the Department of Revenue.
23The proposition shall be in substantially the following form:
24------------------------------------------------------------- 
25    Shall the rate of the
26special tax levied by the .......

 

 

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1Fire Protection District for the            YES
2purpose of providing funds to pay
3the costs of emergency and rescue    -------------------------------------------------------------
4crews and equipment be increased to
5not more than .10% of the value of
6all taxable property within the             NO
7district as equalized or assessed
8by the Department of Revenue?
9-------------------------------------------------------------
10(Source: P.A. 85-652.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.