Illinois General Assembly - Full Text of HB0220
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Full Text of HB0220  99th General Assembly

HB0220sam001 99TH GENERAL ASSEMBLY

Sen. John M. Sullivan

Filed: 5/12/2015

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 220

2    AMENDMENT NO. ______. Amend House Bill 220 by inserting the
3following immediately below the enacting clause:
 
4    "Section 3. The Counties Code is amended by changing
5Section 5-1006.5 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

 

 

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1to the electors of that county and approved by a majority of
2those voting on the question. If imposed, this tax shall be
3imposed only in one-quarter percent increments. By resolution,
4the county board may order the proposition to be submitted at
5any election. If the tax is imposed for transportation purposes
6for expenditures for public highways or as authorized under the
7Illinois Highway Code, the county board must publish notice of
8the existence of its long-range highway transportation plan as
9required or described in Section 5-301 of the Illinois Highway
10Code and must make the plan publicly available prior to
11approval of the ordinance or resolution imposing the tax. If
12the tax is imposed for transportation purposes for expenditures
13for passenger rail transportation, the county board must
14publish notice of the existence of its long-range passenger
15rail transportation plan and must make the plan publicly
16available prior to approval of the ordinance or resolution
17imposing the tax.
18    If a tax is imposed for public facilities purposes, then
19the name of the project may be included in the proposition at
20the discretion of the county board as determined in the
21enabling resolution. For example, the "XXX Nursing Home" or the
22"YYY Museum".
23    The county clerk shall certify the question to the proper
24election authority, who shall submit the proposition at an
25election in accordance with the general election law.
26        (1) The proposition for public safety purposes shall be

 

 

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

 

 

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1    vote of the county board."
2        For the purposes of the paragraph, "public safety
3    purposes" means crime prevention, detention, fire
4    fighting, police, medical, ambulance, or other emergency
5    services.
6        Votes shall be recorded as "Yes" or "No".
7    Beginning on July 1, 2015, Adams County may impose a public
8safety retailers' occupation tax and service occupation tax at
9the rate of 0.25%, as provided in the referendum approved by
10the voters on April 7, 2015, notwithstanding the omission of
11the additional information that is otherwise required to be
12printed on the ballot below the question pursuant to this item
13(1).
14        (2) The proposition for transportation purposes shall
15    be in substantially the following form:
16        "To pay for improvements to roads and other
17    transportation purposes, shall (name of county) be
18    authorized to impose an increase on its share of local
19    sales taxes by (insert rate)?"
20        As additional information on the ballot below the
21    question shall appear the following:
22        "This would mean that a consumer would pay an
23    additional (insert amount) in sales tax for every $100 of
24    tangible personal property bought at retail."
25        The county board may also opt to establish a sunset
26    provision at which time the additional sales tax would

 

 

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

 

 

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

 

 

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1    construction, reconstruction, rehabilitation, improvement,
2    financing, architectural planning, and installation of
3    capital facilities consisting of buildings, structures,
4    and durable equipment and for the acquisition and
5    improvement of real property and interest in real property
6    required, or expected to be required, in connection with
7    the public facilities, for use by the county for the
8    furnishing of governmental services to its citizens,
9    including but not limited to museums and nursing homes.
10        The votes shall be recorded as "Yes" or "No".
11    If a majority of the electors voting on the proposition
12vote in favor of it, the county may impose the tax. A county
13may not submit more than one proposition authorized by this
14Section to the electors at any one time.
15    This additional tax may not be imposed on the sales of food
16for human consumption that is to be consumed off the premises
17where it is sold (other than alcoholic beverages, soft drinks,
18and food which has been prepared for immediate consumption) and
19prescription and non-prescription medicines, drugs, medical
20appliances and insulin, urine testing materials, syringes, and
21needles used by diabetics. The tax imposed by a county under
22this Section and all civil penalties that may be assessed as an
23incident of the tax shall be collected and enforced by the
24Illinois Department of Revenue and deposited into a special
25fund created for that purpose. The certificate of registration
26that is issued by the Department to a retailer under the

 

 

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1Retailers' Occupation Tax Act shall permit the retailer to
2engage in a business that is taxable without registering
3separately with the Department under an ordinance or resolution
4under this Section. The Department has full power to administer
5and enforce this Section, to collect all taxes and penalties
6due under this Section, to dispose of taxes and penalties so
7collected in the manner provided in this Section, and to
8determine all rights to credit memoranda arising on account of
9the erroneous payment of a tax or penalty under this Section.
10In the administration of and compliance with this Section, the
11Department and persons who are subject to this Section shall
12(i) have the same rights, remedies, privileges, immunities,
13powers, and duties, (ii) be subject to the same conditions,
14restrictions, limitations, penalties, and definitions of
15terms, and (iii) employ the same modes of procedure as are
16prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
171n, 2 through 2-70 (in respect to all provisions contained in
18those Sections other than the State rate of tax), 2a, 2b, 2c, 3
19(except provisions relating to transaction returns and quarter
20monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
215j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of
22the Retailers' Occupation Tax Act and Section 3-7 of the
23Uniform Penalty and Interest Act as if those provisions were
24set forth in this Section.
25    Persons subject to any tax imposed under the authority
26granted in this Section may reimburse themselves for their

 

 

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1sellers' tax liability by separately stating the tax as an
2additional charge, which charge may be stated in combination,
3in a single amount, with State tax which sellers are required
4to collect under the Use Tax Act, pursuant to such bracketed
5schedules as the Department may prescribe.
6    Whenever the Department determines that a refund should be
7made under this Section to a claimant instead of issuing a
8credit memorandum, the Department shall notify the State
9Comptroller, who shall cause the order 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 Tax Fund.
14    (b) If a tax has been imposed under subsection (a), a
15service occupation tax shall also be imposed at the same rate
16upon all persons engaged, in the county, in the business of
17making sales of service, who, as an incident to making those
18sales of service, transfer tangible personal property within
19the county as an incident to a sale of service. This tax may
20not be imposed on sales of food for human consumption that is
21to be consumed off the premises where it is sold (other than
22alcoholic beverages, soft drinks, and food prepared for
23immediate consumption) and prescription and non-prescription
24medicines, drugs, medical appliances and insulin, urine
25testing materials, syringes, and needles used by diabetics. The
26tax imposed under this subsection and all civil penalties that

 

 

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1may be assessed as an incident thereof shall be collected and
2enforced by the Department of Revenue. The Department has full
3power to administer and enforce this subsection; to collect all
4taxes and penalties due hereunder; to dispose of taxes and
5penalties so collected in the manner hereinafter provided; and
6to determine all rights to credit memoranda arising on account
7of the erroneous payment of tax or penalty hereunder. In the
8administration of, and compliance with this subsection, the
9Department and persons who are subject to this paragraph shall
10(i) have the same rights, remedies, privileges, immunities,
11powers, and duties, (ii) be subject to the same conditions,
12restrictions, limitations, penalties, exclusions, exemptions,
13and definitions of terms, and (iii) employ the same modes of
14procedure as are prescribed in Sections 2 (except that the
15reference to State in the definition of supplier maintaining a
16place of business in this State shall mean the county), 2a, 2b,
172c, 3 through 3-50 (in respect to all provisions therein other
18than the State rate of tax), 4 (except that the reference to
19the State shall be to the county), 5, 7, 8 (except that the
20jurisdiction to which the tax shall be a debt to the extent
21indicated in that Section 8 shall be the county), 9 (except as
22to the disposition of taxes and penalties collected), 10, 11,
2312 (except the reference therein to Section 2b of the
24Retailers' Occupation Tax Act), 13 (except that any reference
25to the State shall mean the county), Section 15, 16, 17, 18, 19
26and 20 of the Service Occupation Tax Act and Section 3-7 of the

 

 

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1Uniform Penalty and Interest Act, as fully as if those
2provisions 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 charge may be stated in combination,
7in a single amount, with State tax that servicemen are
8authorized to collect under the Service Use Tax Act, in
9accordance with such bracket schedules as the Department may
10prescribe.
11    Whenever the Department determines that a refund should be
12made under this subsection to a claimant instead of issuing a
13credit memorandum, the Department shall notify the State
14Comptroller, who shall cause the warrant to be drawn for the
15amount specified, and to the person named, in the notification
16from the Department. The refund shall be paid by the State
17Treasurer out of the County Public Safety or Transportation
18Retailers' Occupation Fund.
19    Nothing in this subsection shall be construed to authorize
20the county to impose a tax upon the privilege of engaging in
21any business which under the Constitution of the United States
22may not be made the subject of taxation by the State.
23    (c) The Department shall immediately pay over to the State
24Treasurer, ex officio, as trustee, all taxes and penalties
25collected under this Section to be deposited into the County
26Public Safety or Transportation Retailers' Occupation Tax

 

 

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1Fund, which shall be an unappropriated trust fund held outside
2of the State treasury.
3    As soon as possible after the first day of each month,
4beginning January 1, 2011, upon certification of the Department
5of Revenue, the Comptroller shall order transferred, and the
6Treasurer shall transfer, to the STAR Bonds Revenue Fund the
7local sales tax increment, as defined in the Innovation
8Development and Economy Act, collected under this Section
9during the second preceding calendar month for sales within a
10STAR bond district.
11    After the monthly transfer to the STAR Bonds Revenue Fund,
12on or before the 25th day of each calendar month, the
13Department shall prepare and certify to the Comptroller the
14disbursement of stated sums of money to the counties from which
15retailers have paid taxes or penalties to the Department during
16the second preceding calendar month. The amount to be paid to
17each county, and deposited by the county into its special fund
18created for the purposes of this Section, shall be the amount
19(not including credit memoranda) collected under this Section
20during the second preceding calendar month by the Department
21plus an amount the Department determines is necessary to offset
22any amounts that were erroneously paid to a different taxing
23body, and not including (i) an amount equal to the amount of
24refunds made during the second preceding calendar month by the
25Department on behalf of the county, (ii) any amount that the
26Department determines is necessary to offset any amounts that

 

 

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1were payable to a different taxing body but were erroneously
2paid to the county, and (iii) any amounts that are transferred
3to the STAR Bonds Revenue Fund. Within 10 days after receipt by
4the Comptroller of the disbursement certification to the
5counties provided for in this Section to be given to the
6Comptroller by the Department, the Comptroller shall cause the
7orders to be drawn for the respective amounts in accordance
8with directions contained in the certification.
9    In addition to the disbursement required by the preceding
10paragraph, an allocation shall be made in March of each year to
11each county that received more than $500,000 in disbursements
12under the preceding paragraph in the preceding calendar year.
13The allocation shall be in an amount equal to the average
14monthly distribution made to each such county under the
15preceding paragraph during the preceding calendar year
16(excluding the 2 months of highest receipts). The distribution
17made in March of each year subsequent to the year in which an
18allocation was made pursuant to this paragraph and the
19preceding paragraph shall be reduced by the amount allocated
20and disbursed under this paragraph in the preceding calendar
21year. The Department shall prepare and certify to the
22Comptroller for disbursement the allocations made in
23accordance with this paragraph.
24    A county may direct, by ordinance, that all or a portion of
25the taxes and penalties collected under the Special County
26Retailers' Occupation Tax For Public Safety or Transportation

 

 

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1be deposited into the Transportation Development Partnership
2Trust Fund.
3    (d) For the purpose of determining the local governmental
4unit whose tax is applicable, a retail sale by a producer of
5coal or another mineral mined in Illinois is a sale at retail
6at the place where the coal or other mineral mined in Illinois
7is extracted from the earth. This paragraph does not apply to
8coal or another mineral when it is delivered or shipped by the
9seller to the purchaser at a point outside Illinois so that the
10sale is exempt under the United States Constitution as a sale
11in interstate or foreign commerce.
12    (e) Nothing in this Section shall be construed to authorize
13a county to impose a tax upon the privilege of engaging in any
14business that under the Constitution of the United States may
15not be made the subject of taxation by this State.
16    (e-5) If a county imposes a tax under this Section, the
17county board may, by ordinance, discontinue or lower the rate
18of the tax. If the county board lowers the tax rate or
19discontinues the tax, a referendum must be held in accordance
20with subsection (a) of this Section in order to increase the
21rate of the tax or to reimpose the discontinued tax.
22    (f) Beginning April 1, 1998 and through December 31, 2013,
23the results of any election authorizing a proposition to impose
24a tax under this Section or effecting a change in the rate of
25tax, or any ordinance lowering the rate or discontinuing the
26tax, shall be certified by the county clerk and filed with the

 

 

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1Illinois Department of Revenue either (i) on or before the
2first day of April, whereupon the Department shall proceed to
3administer and enforce the tax as of the first day of July next
4following the filing; or (ii) on or before the first day of
5October, whereupon the Department shall proceed to administer
6and enforce the tax as of the first day of January next
7following the filing.
8    Beginning January 1, 2014, the results of any election
9authorizing a proposition to impose a tax under this Section or
10effecting an increase in the rate of tax, along with the
11ordinance adopted to impose the tax or increase the rate of the
12tax, or any ordinance adopted to lower the rate or discontinue
13the tax, shall be certified by the county clerk and filed with
14the Illinois Department of Revenue either (i) on or before the
15first day of May, whereupon the Department shall proceed to
16administer and enforce the tax as of the first day of July next
17following the adoption and filing; or (ii) on or before the
18first day of October, whereupon the Department shall proceed to
19administer and enforce the tax as of the first day of January
20next following the adoption and filing.
21    (g) When certifying the amount of a monthly disbursement to
22a county under this Section, the Department shall increase or
23decrease the amounts by an amount necessary to offset any
24miscalculation of previous disbursements. The offset amount
25shall be the amount erroneously disbursed within the previous 6
26months from the time a miscalculation is discovered.

 

 

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1    (h) This Section may be cited as the "Special County
2Occupation Tax For Public Safety, Public Facilities, or
3Transportation Law".
4    (i) For purposes of this Section, "public safety" includes,
5but is not limited to, crime prevention, detention, fire
6fighting, police, medical, ambulance, or other emergency
7services. The county may share tax proceeds received under this
8Section for public safety purposes, including proceeds
9received before August 4, 2009 (the effective date of Public
10Act 96-124), with any fire protection district located in the
11county. For the purposes of this Section, "transportation"
12includes, but is not limited to, the construction, maintenance,
13operation, and improvement of public highways, any other
14purpose for which a county may expend funds under the Illinois
15Highway Code, and passenger rail transportation. For the
16purposes of this Section, "public facilities purposes"
17includes, but is not limited to, the acquisition, development,
18construction, reconstruction, rehabilitation, improvement,
19financing, architectural planning, and installation of capital
20facilities consisting of buildings, structures, and durable
21equipment and for the acquisition and improvement of real
22property and interest in real property required, or expected to
23be required, in connection with the public facilities, for use
24by the county for the furnishing of governmental services to
25its citizens, including but not limited to museums and nursing
26homes.

 

 

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1    (j) The Department may promulgate rules to implement Public
2Act 95-1002 only to the extent necessary to apply the existing
3rules for the Special County Retailers' Occupation Tax for
4Public Safety to this new purpose for public facilities.
5(Source: P.A. 98-584, eff. 8-27-13.)".