Full Text of HB3244 101st General Assembly
HB3244sam001 101ST GENERAL ASSEMBLY | Sen. Don Harmon Filed: 5/17/2019
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| 1 | | AMENDMENT TO HOUSE BILL 3244
| 2 | | AMENDMENT NO. ______. Amend House Bill 3244 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Counties Code is amended by changing | 5 | | Section 5-1006.7 as follows: | 6 | | (55 ILCS 5/5-1006.7) | 7 | | Sec. 5-1006.7. School facility occupation taxes. | 8 | | (a) In any county, a tax shall be imposed upon all persons | 9 | | engaged in the business of selling tangible personal property, | 10 | | other than personal property titled or registered with an | 11 | | agency of this State's government, at retail in the county on | 12 | | the gross receipts from the sales made in the course of | 13 | | business to provide revenue to be used exclusively for school | 14 | | facility purposes if a proposition for the tax has been | 15 | | submitted to the electors of that county and approved by a | 16 | | majority of those voting on the question as provided in |
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| 1 | | subsection (c). The tax under this Section shall be imposed | 2 | | only in one-quarter percent increments and may not exceed 1%. | 3 | | This additional tax may not be imposed on tangible personal | 4 | | property taxed at the 1% rate under the Retailers' Occupation | 5 | | Tax Act.
The Department of Revenue has full power to administer | 6 | | and enforce this subsection, to collect all taxes and penalties | 7 | | due under this subsection, to dispose of taxes and penalties so | 8 | | collected in the manner provided in this subsection, and to | 9 | | determine all rights to credit memoranda arising on account of | 10 | | the erroneous payment of a tax or penalty under this | 11 | | subsection. The Department shall deposit all taxes and | 12 | | penalties collected under this subsection into a special fund | 13 | | created for that purpose. | 14 | | In the administration of and compliance with this | 15 | | subsection, the Department and persons who are subject to this | 16 | | subsection (i) have the same rights, remedies, privileges, | 17 | | immunities, powers, and duties, (ii) are subject to the same | 18 | | conditions, restrictions, limitations, penalties, and | 19 | | definitions of terms, and (iii) shall employ the same modes of | 20 | | procedure as are set forth in Sections 1 through 1o, 2 through | 21 | | 2-70 (in respect to all provisions contained in those Sections | 22 | | other than the State rate of tax), 2a through 2h, 3 (except as | 23 | | to the disposition of taxes and penalties collected), 4, 5, 5a, | 24 | | 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, | 25 | | 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation | 26 | | Tax Act and all provisions of the Uniform Penalty and Interest |
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| 1 | | Act as if those provisions were set forth in this subsection. | 2 | | The certificate of registration that is issued by the | 3 | | Department to a retailer under the Retailers' Occupation Tax | 4 | | Act permits the retailer to engage in a business that is | 5 | | taxable without registering separately with the Department | 6 | | under an ordinance or resolution under this subsection. | 7 | | Persons subject to any tax imposed under the authority | 8 | | granted in this subsection may reimburse themselves for their | 9 | | seller's tax liability by separately stating that tax as an | 10 | | additional charge, which may be stated in combination, in a | 11 | | single amount, with State tax that sellers are required to | 12 | | collect under the Use Tax Act, pursuant to any bracketed | 13 | | schedules set forth by the Department. | 14 | | (b) If a tax has been imposed under subsection (a), then a | 15 | | service occupation tax must also be imposed at the same rate | 16 | | upon all persons engaged, in the county, in the business of | 17 | | making sales of service, who, as an incident to making those | 18 | | sales of service, transfer tangible personal property within | 19 | | the county as an incident to a sale of service. | 20 | | This tax may not be imposed on tangible personal property | 21 | | taxed at the 1% rate under the Service Occupation Tax Act. | 22 | | The tax imposed under this subsection and all civil | 23 | | penalties that may be assessed as an incident thereof shall be | 24 | | collected and enforced by the Department and deposited into a | 25 | | special fund created for that purpose. The Department has full | 26 | | power to administer and enforce this subsection, to collect all |
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| 1 | | taxes and penalties due under this subsection, to dispose of | 2 | | taxes and penalties so collected in the manner provided in this | 3 | | subsection, and to determine all rights to credit memoranda | 4 | | arising on account of the erroneous payment of a tax or penalty | 5 | | under this subsection. | 6 | | In the administration of and compliance with this | 7 | | subsection, the Department and persons who are subject to this | 8 | | subsection shall (i) have the same rights, remedies, | 9 | | privileges, immunities, powers and duties, (ii) be subject to | 10 | | the same conditions, restrictions, limitations, penalties and | 11 | | definition of terms, and (iii) employ the same modes of | 12 | | procedure as are set forth in Sections 2 (except that that | 13 | | reference to State in the definition of supplier maintaining a | 14 | | place of business in this State means the county), 2a through | 15 | | 2d, 3 through 3-50 (in respect to all provisions contained in | 16 | | those Sections other than the State rate of tax), 4 (except | 17 | | that the reference to the State shall be to the county), 5, 7, | 18 | | 8 (except that the jurisdiction to which the tax is a debt to | 19 | | the extent indicated in that Section 8 is the county), 9 | 20 | | (except as to the disposition of taxes and penalties | 21 | | collected), 10, 11, 12 (except the reference therein to Section | 22 | | 2b of the Retailers' Occupation Tax Act), 13 (except that any | 23 | | reference to the State means the county), Section 15, 16, 17, | 24 | | 18, 19, and 20 of the Service Occupation Tax Act and all | 25 | | provisions of the Uniform Penalty and Interest Act, as fully as | 26 | | if those provisions were set forth herein. |
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| 1 | | Persons subject to any tax imposed under the authority | 2 | | granted in this subsection may reimburse themselves for their | 3 | | serviceman's tax liability by separately stating the tax as an | 4 | | additional charge, which may be stated in combination, in a | 5 | | single amount, with State tax that servicemen are authorized to | 6 | | collect under the Service Use Tax Act, pursuant to any | 7 | | bracketed schedules set forth by the Department. | 8 | | (c) The tax under this Section may not be imposed until the | 9 | | question of imposing the tax has been submitted to the electors | 10 | | of the county at a regular election and approved by a majority | 11 | | of the electors voting on the question. For all regular | 12 | | elections held prior to August 23, 2011 (the effective date of | 13 | | Public Act 97-542), upon a resolution by the county board or a | 14 | | resolution by school district boards that represent at least | 15 | | 51% of the student enrollment within the county, the county | 16 | | board must certify the question to the proper election | 17 | | authority in accordance with the Election Code. | 18 | | For all regular elections held prior to August 23, 2011 | 19 | | (the effective date of Public Act 97-542), the election | 20 | | authority must submit the question in substantially the | 21 | | following form: | 22 | | Shall (name of county) be authorized to impose a | 23 | | retailers' occupation tax and a service occupation tax | 24 | | (commonly referred to as a "sales tax") at a rate of | 25 | | (insert rate) to be used exclusively for school facility | 26 | | purposes? |
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| 1 | | The election authority must record the votes as "Yes" or "No". | 2 | | If a majority of the electors voting on the question vote | 3 | | in the affirmative, then the county may, thereafter, impose the | 4 | | tax. | 5 | | For all regular elections held on or after August 23, 2011 | 6 | | (the effective date of Public Act 97-542), the regional | 7 | | superintendent of schools for the county must, upon receipt of | 8 | | a resolution or resolutions of school district boards that | 9 | | represent more than 50% of the student enrollment within the | 10 | | county, certify the question to the proper election authority | 11 | | for submission to the electors of the county at the next | 12 | | regular election at which the question lawfully may be | 13 | | submitted to the electors, all in accordance with the Election | 14 | | Code. | 15 | | For all regular elections held on or after August 23, 2011 | 16 | | (the effective date of Public Act 97-542), the election | 17 | | authority must submit the question in substantially the | 18 | | following form: | 19 | | Shall a retailers' occupation tax and a service | 20 | | occupation tax (commonly referred to as a "sales tax") be | 21 | | imposed in (name of county) at a rate of (insert rate) to | 22 | | be used exclusively for school facility purposes? | 23 | | The election authority must record the votes as "Yes" or "No". | 24 | | If a majority of the electors voting on the question vote | 25 | | in the affirmative, then the tax shall be imposed at the rate | 26 | | set forth in the question. |
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| 1 | | For the purposes of this subsection (c), "enrollment" means | 2 | | the head count of the students residing in the county on the | 3 | | last school day of September of each year, which must be | 4 | | reported on the Illinois State Board of Education Public School | 5 | | Fall Enrollment/Housing Report.
| 6 | | (d) The Department shall immediately pay over to the State | 7 | | Treasurer, ex officio, as trustee, all taxes and penalties | 8 | | collected under this Section to be deposited into the School | 9 | | Facility Occupation Tax Fund, which shall be an unappropriated | 10 | | trust fund held outside the State treasury. | 11 | | On or before the 25th day of each calendar month, the | 12 | | Department shall prepare and certify to the Comptroller the | 13 | | disbursement of stated sums of money to the regional | 14 | | superintendents of schools in counties from which retailers or | 15 | | servicemen have paid taxes or penalties to the Department | 16 | | during the second preceding calendar month. The amount to be | 17 | | paid to each regional superintendent of schools and disbursed | 18 | | to him or her in accordance with Section 3-14.31 of the School | 19 | | Code, is equal to the amount (not including credit memoranda) | 20 | | collected from the county under this Section during the second | 21 | | preceding calendar month by the Department, (i) less 2% of that | 22 | | amount, which shall be deposited into the Tax Compliance and | 23 | | Administration Fund and shall be used by the Department, | 24 | | subject to appropriation, to cover the costs of the Department | 25 | | in administering and enforcing the provisions of this Section, | 26 | | on behalf of the county, (ii) plus an amount that the |
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| 1 | | Department determines is necessary to offset any amounts that | 2 | | were erroneously paid to a different taxing body; (iii) less an | 3 | | amount equal to the amount of refunds made during the second | 4 | | preceding calendar month by the Department on behalf of the | 5 | | county; and (iv) less any amount that the Department determines | 6 | | is necessary to offset any amounts that were payable to a | 7 | | different taxing body but were erroneously paid to the county. | 8 | | When certifying the amount of a monthly disbursement to a | 9 | | regional superintendent of schools under this Section, the | 10 | | Department shall increase or decrease the amounts by an amount | 11 | | necessary to offset any miscalculation of previous | 12 | | disbursements within the previous 6 months from the time a | 13 | | miscalculation is discovered. | 14 | | Within 10 days after receipt by the Comptroller from the | 15 | | Department of the disbursement certification to the regional | 16 | | superintendents of the schools provided for in this Section, | 17 | | the Comptroller shall cause the orders to be drawn for the | 18 | | respective amounts in accordance with directions contained in | 19 | | the certification. | 20 | | If the Department determines that a refund should be made | 21 | | under this Section to a claimant instead of issuing a credit | 22 | | memorandum, then the Department shall notify the Comptroller, | 23 | | who shall cause the order to be drawn for the amount specified | 24 | | and to the person named in the notification from the | 25 | | Department. The refund shall be paid by the Treasurer out of | 26 | | the School Facility Occupation Tax Fund.
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| 1 | | (e) For the purposes of determining the local governmental | 2 | | unit whose tax is applicable, a retail sale by a producer of | 3 | | coal or another mineral mined in Illinois is a sale at retail | 4 | | at the place where the coal or other mineral mined in Illinois | 5 | | is extracted from the earth. This subsection does not apply to | 6 | | coal or another mineral when it is delivered or shipped by the | 7 | | seller to the purchaser at a point outside Illinois so that the | 8 | | sale is exempt under the United States Constitution as a sale | 9 | | in interstate or foreign commerce. | 10 | | (f) Nothing in this Section may be construed to authorize a | 11 | | tax to be imposed upon the privilege of engaging in any | 12 | | business that under the Constitution of the United States may | 13 | | not be made the subject of taxation by this State. | 14 | | (g) If a county board imposes a tax under this Section | 15 | | pursuant to a referendum held before August 23, 2011 (the | 16 | | effective date of Public Act 97-542) at a rate below the rate | 17 | | set forth in the question approved by a majority of electors of | 18 | | that county voting on the question as provided in subsection | 19 | | (c), then the county board may, by ordinance, increase the rate | 20 | | of the tax up to the rate set forth in the question approved by | 21 | | a majority of electors of that county voting on the question as | 22 | | provided in subsection (c). If a county board imposes a tax | 23 | | under this Section pursuant to a referendum held before August | 24 | | 23, 2011 (the effective date of Public Act 97-542), then the | 25 | | board may, by ordinance, discontinue or reduce the rate of the | 26 | | tax. If a tax is imposed under this Section pursuant to a |
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| 1 | | referendum held on or after August 23, 2011 (the effective date | 2 | | of Public Act 97-542), then the county board may reduce or | 3 | | discontinue the tax, but only in accordance with subsection | 4 | | (h-5) of this Section. If, however, a school board issues bonds | 5 | | that are secured by the proceeds of the tax under this Section, | 6 | | then the county board may not reduce the tax rate or | 7 | | discontinue the tax if that rate reduction or discontinuance | 8 | | would adversely affect the school board's ability to pay the | 9 | | principal and interest on those bonds as they become due or | 10 | | necessitate the extension of additional property taxes to pay | 11 | | the principal and interest on those bonds. If the county board | 12 | | reduces the tax rate or discontinues the tax, then a referendum | 13 | | must be held in accordance with subsection (c) of this Section | 14 | | in order to increase the rate of the tax or to reimpose the | 15 | | discontinued tax. | 16 | | Until January 1, 2014, the results of any election that | 17 | | imposes, reduces, or discontinues a tax under this Section must | 18 | | be certified by the election authority, and any ordinance that | 19 | | increases or lowers the rate or discontinues the tax must be | 20 | | certified by the county clerk and, in each case, filed with the | 21 | | Illinois Department of Revenue either (i) on or before the | 22 | | first day of April, whereupon the Department shall proceed to | 23 | | administer and enforce the tax or change in the rate as of the | 24 | | first day of July next following the filing; or (ii) on or | 25 | | before the first day of October, whereupon the Department shall | 26 | | proceed to administer and enforce the tax or change in the rate |
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| 1 | | as of the first day of January next following the filing. | 2 | | Beginning January 1, 2014, the results of any election that | 3 | | imposes, reduces, or discontinues a tax under this Section must | 4 | | be certified by the election authority, and any ordinance that | 5 | | increases or lowers the rate or discontinues the tax must be | 6 | | certified by the county clerk and, in each case, filed with the | 7 | | Illinois Department of Revenue either (i) on or before the | 8 | | first day of May, whereupon the Department shall proceed to | 9 | | administer and enforce the tax or change in the rate as of the | 10 | | first day of July next following the filing; or (ii) on or | 11 | | before the first day of October, whereupon the Department shall | 12 | | proceed to administer and enforce the tax or change in the rate | 13 | | as of the first day of January next following the filing. | 14 | | (h) For purposes of this Section, "school facility | 15 | | purposes" means (i) the acquisition, development, | 16 | | construction, reconstruction, rehabilitation, improvement, | 17 | | financing, architectural planning, and installation of capital | 18 | | facilities consisting of buildings, structures, and durable | 19 | | equipment and for the acquisition and improvement of real | 20 | | property and interest in real property required, or expected to | 21 | | be required, in connection with the capital facilities and (ii) | 22 | | the payment of bonds or other obligations heretofore or | 23 | | hereafter issued, including bonds or other obligations | 24 | | heretofore or hereafter issued to refund or to continue to | 25 | | refund bonds or other obligations issued, for school facility | 26 | | purposes, provided that the taxes levied to pay those bonds are |
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| 1 | | abated by the amount of the taxes imposed under this Section | 2 | | that are used to pay those bonds. "School-facility purposes" | 3 | | also includes : (i) fire prevention, safety, energy | 4 | | conservation, accessibility, school security, and specified | 5 | | repair purposes set forth under Section 17-2.11 of the School | 6 | | Code ; or (ii) school safety and security improvements, and all | 7 | | equipment, fixtures, and renovations and improvements to | 8 | | existing facilities necessary to accommodate the same, and | 9 | | payments for or related to school resource officers and mental | 10 | | health providers . | 11 | | (h-5) A county board in a county where a tax has been | 12 | | imposed under this Section pursuant to a referendum held on or | 13 | | after August 23, 2011 (the effective date of Public Act 97-542) | 14 | | may, by ordinance or resolution, submit to the voters of the | 15 | | county the question of reducing or discontinuing the tax. In | 16 | | the ordinance or resolution, the county board shall certify the | 17 | | question to the proper election authority in accordance with | 18 | | the Election Code. The election authority must submit the | 19 | | question in substantially the following form: | 20 | | Shall the school facility retailers' occupation tax | 21 | | and service occupation tax (commonly referred to as the | 22 | | "school facility sales tax") currently imposed in (name of | 23 | | county) at a rate of (insert rate) be (reduced to (insert | 24 | | rate))(discontinued)? | 25 | | If a majority of the electors voting on the question vote in | 26 | | the affirmative, then, subject to the provisions of subsection |
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| 1 | | (g) of this Section, the tax shall be reduced or discontinued | 2 | | as set forth in the question. | 3 | | (i) This Section does not apply to Cook County. | 4 | | (j) This Section may be cited as the County School Facility | 5 | | Occupation Tax Law.
| 6 | | (Source: P.A. 99-143, eff. 7-27-15; 99-217, eff. 7-31-15; | 7 | | 99-642, eff. 7-28-16; 100-1171, eff. 1-4-19.)
| 8 | | Section 99. Effective date. This Act takes effect upon | 9 | | becoming law.".
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