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Full Text of HB0220  99th General Assembly

HB0220sam003 99TH GENERAL ASSEMBLY

Sen. John M. Sullivan

Filed: 5/13/2015

 

 


 

 


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

 

 

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

 

 

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

 

 

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

 

 

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1fund created for that purpose. The certificate of registration
2that is issued by the Department to a retailer under the
3Retailers' Occupation Tax Act shall permit the retailer to
4engage in a business that is taxable without registering
5separately with the Department under an ordinance or resolution
6under this Section. The Department has full power to administer
7and enforce this Section, to collect all taxes and penalties
8due under this Section, to dispose of taxes and penalties so
9collected in the manner provided in this Section, and to
10determine all rights to credit memoranda arising on account of
11the erroneous payment of a tax or penalty under this Section.
12In the administration of and compliance with this Section, the
13Department and persons who are subject to this Section shall
14(i) have the same rights, remedies, privileges, immunities,
15powers, and duties, (ii) be subject to the same conditions,
16restrictions, limitations, penalties, and definitions of
17terms, and (iii) employ the same modes of procedure as are
18prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
191n, 2 through 2-70 (in respect to all provisions contained in
20those Sections other than the State rate of tax), 2a, 2b, 2c, 3
21(except provisions relating to transaction returns and quarter
22monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
235j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of
24the Retailers' Occupation Tax Act and Section 3-7 of the
25Uniform Penalty and Interest Act as if those provisions were
26set forth in this Section.

 

 

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1    Persons subject to any tax imposed under the authority
2granted in this Section may reimburse themselves for their
3sellers' tax liability by separately stating the tax as an
4additional charge, which charge may be stated in combination,
5in a single amount, with State tax which sellers are required
6to collect under the Use Tax Act, pursuant to such bracketed
7schedules as the Department may prescribe.
8    Whenever the Department determines that a refund should be
9made under this Section to a claimant instead of issuing a
10credit memorandum, the Department shall notify the State
11Comptroller, who shall cause the order to be drawn for the
12amount specified and to the person named in the notification
13from the Department. The refund shall be paid by the State
14Treasurer out of the County Public Safety or Transportation
15Retailers' Occupation Tax Fund.
16    (b) If a tax has been imposed under subsection (a), a
17service occupation tax shall also be imposed at the same rate
18upon all persons engaged, in the county, in the business of
19making sales of service, who, as an incident to making those
20sales of service, transfer tangible personal property within
21the county as an incident to a sale of service. This tax may
22not be imposed on sales of food for human consumption that is
23to be consumed off the premises where it is sold (other than
24alcoholic beverages, soft drinks, and food prepared for
25immediate consumption) and prescription and non-prescription
26medicines, drugs, medical appliances and insulin, urine

 

 

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1testing materials, syringes, and needles used by diabetics. The
2tax imposed under this subsection and all civil penalties that
3may be assessed as an incident thereof shall be collected and
4enforced by the Department of Revenue. The Department has full
5power to administer and enforce this subsection; to collect all
6taxes and penalties due hereunder; to dispose of taxes and
7penalties so collected in the manner hereinafter provided; and
8to determine all rights to credit memoranda arising on account
9of the erroneous payment of tax or penalty hereunder. In the
10administration of, and compliance with this subsection, the
11Department and persons who are subject to this paragraph shall
12(i) have the same rights, remedies, privileges, immunities,
13powers, and duties, (ii) be subject to the same conditions,
14restrictions, limitations, penalties, exclusions, exemptions,
15and definitions of terms, and (iii) employ the same modes of
16procedure as are prescribed in Sections 2 (except that the
17reference to State in the definition of supplier maintaining a
18place of business in this State shall mean the county), 2a, 2b,
192c, 3 through 3-50 (in respect to all provisions therein other
20than the State rate of tax), 4 (except that the reference to
21the State shall be to the county), 5, 7, 8 (except that the
22jurisdiction to which the tax shall be a debt to the extent
23indicated in that Section 8 shall be the county), 9 (except as
24to the disposition of taxes and penalties collected), 10, 11,
2512 (except the reference therein to Section 2b of the
26Retailers' Occupation Tax Act), 13 (except that any reference

 

 

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1to the State shall mean the county), Section 15, 16, 17, 18, 19
2and 20 of the Service Occupation Tax Act and Section 3-7 of the
3Uniform Penalty and Interest Act, as fully as if those
4provisions were set forth herein.
5    Persons subject to any tax imposed under the authority
6granted in this subsection may reimburse themselves for their
7serviceman's tax liability by separately stating the tax as an
8additional charge, which charge may be stated in combination,
9in a single amount, with State tax that servicemen are
10authorized to collect under the Service Use Tax Act, in
11accordance with such bracket schedules as the Department may
12prescribe.
13    Whenever the Department determines that a refund should be
14made under this subsection to a claimant instead of issuing a
15credit memorandum, the Department shall notify the State
16Comptroller, who shall cause the warrant to be drawn for the
17amount specified, and to the person named, in the notification
18from the Department. The refund shall be paid by the State
19Treasurer out of the County Public Safety or Transportation
20Retailers' Occupation Fund.
21    Nothing in this subsection shall be construed to authorize
22the county to impose a tax upon the privilege of engaging in
23any business which under the Constitution of the United States
24may not be made the subject of taxation by the State.
25    (c) The Department shall immediately pay over to the State
26Treasurer, ex officio, as trustee, all taxes and penalties

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1its citizens, including but not limited to museums and nursing
2homes.
3    (j) The Department may promulgate rules to implement Public
4Act 95-1002 only to the extent necessary to apply the existing
5rules for the Special County Retailers' Occupation Tax for
6Public Safety to this new purpose for public facilities.
7(Source: P.A. 98-584, eff. 8-27-13.)".