Illinois General Assembly - Full Text of HB4326
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Full Text of HB4326  102nd General Assembly

HB4326enr 102ND GENERAL ASSEMBLY

  
  
  

 


 
HB4326 EnrolledLRB102 21969 AWJ 31096 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 5. The Counties Code is amended by changing
5Section 5-1006.7 as follows:
 
6    (55 ILCS 5/5-1006.7)
7    Sec. 5-1006.7. School facility and resources occupation
8taxes.
9    (a) In any county, a tax shall be imposed upon all persons
10engaged in the business of selling tangible personal property,
11other than personal property titled or registered with an
12agency of this State's government, at retail in the county on
13the gross receipts from the sales made in the course of
14business to provide revenue to be used exclusively for (i)
15school facility purposes (except as otherwise provided in this
16Section), (ii) school resource officers and mental health
17professionals, or (iii) school facility purposes, school
18resource officers, and mental health professionals if a
19proposition for the tax has been submitted to the electors of
20that county and approved by a majority of those voting on the
21question as provided in subsection (c). The tax under this
22Section shall be imposed only in one-quarter percent
23increments and may not exceed 1%.

 

 

HB4326 Enrolled- 2 -LRB102 21969 AWJ 31096 b

1    This additional tax may not be imposed on tangible
2personal property taxed at the 1% rate under the Retailers'
3Occupation Tax Act. Beginning December 1, 2019 and through
4December 31, 2020, this tax is not imposed on sales of aviation
5fuel unless the tax revenue is expended for airport-related
6purposes. If the county does not have an airport-related
7purpose to which it dedicates aviation fuel tax revenue, then
8aviation fuel is excluded from the tax. The county must comply
9with the certification requirements for airport-related
10purposes under Section 2-22 of the Retailers' Occupation Tax
11Act. For purposes of this Section, "airport-related purposes"
12has the meaning ascribed in Section 6z-20.2 of the State
13Finance Act. Beginning January 1, 2021, this tax is not
14imposed on sales of aviation fuel for so long as the revenue
15use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
16binding on the county. The Department of Revenue has full
17power to administer and enforce this subsection, to collect
18all taxes and penalties due under this subsection, to dispose
19of taxes and penalties so collected in the manner provided in
20this subsection, and to determine all rights to credit
21memoranda arising on account of the erroneous payment of a tax
22or penalty under this subsection. The Department shall deposit
23all taxes and penalties collected under this subsection into a
24special fund created for that purpose.
25    In the administration of and compliance with this
26subsection, the Department and persons who are subject to this

 

 

HB4326 Enrolled- 3 -LRB102 21969 AWJ 31096 b

1subsection (i) have the same rights, remedies, privileges,
2immunities, powers, and duties, (ii) are subject to the same
3conditions, restrictions, limitations, penalties, and
4definitions of terms, and (iii) shall employ the same modes of
5procedure as are set forth in Sections 1 through 1o, 2 through
62-70 (in respect to all provisions contained in those Sections
7other than the State rate of tax), 2a through 2h, 3 (except as
8to the disposition of taxes and penalties collected, and
9except that the retailer's discount is not allowed for taxes
10paid on aviation fuel that are subject to the revenue use
11requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
125a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c,
136d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
14Occupation Tax Act and all provisions of the Uniform Penalty
15and Interest Act as if those provisions were set forth in this
16subsection.
17    The certificate of registration that is issued by the
18Department to a retailer under the Retailers' Occupation Tax
19Act permits the retailer to engage in a business that is
20taxable without registering separately with the Department
21under an ordinance or resolution under this subsection.
22    Persons subject to any tax imposed under the authority
23granted in this subsection may reimburse themselves for their
24seller's tax liability by separately stating that tax as an
25additional charge, which may be stated in combination, in a
26single amount, with State tax that sellers are required to

 

 

HB4326 Enrolled- 4 -LRB102 21969 AWJ 31096 b

1collect under the Use Tax Act, pursuant to any bracketed
2schedules set forth by the Department.
3    (b) If a tax has been imposed under subsection (a), then a
4service occupation tax must also be imposed at the same rate
5upon all persons engaged, in the county, in the business of
6making sales of service, who, as an incident to making those
7sales of service, transfer tangible personal property within
8the county as an incident to a sale of service.
9    This tax may not be imposed on tangible personal property
10taxed at the 1% rate under the Service Occupation Tax Act.
11Beginning December 1, 2019 and through December 31, 2020, this
12tax is not imposed on sales of aviation fuel unless the tax
13revenue is expended for airport-related purposes. If the
14county does not have an airport-related purpose to which it
15dedicates aviation fuel tax revenue, then aviation fuel is
16excluded from the tax. The county must comply with the
17certification requirements for airport-related purposes under
18Section 2-22 of the Retailers' Occupation Tax Act. For
19purposes of this Section, "airport-related purposes" has the
20meaning ascribed in Section 6z-20.2 of the State Finance Act.
21Beginning January 1, 2021, this tax is not imposed on sales of
22aviation fuel for so long as the revenue use requirements of 49
23U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
24    The tax imposed under this subsection and all civil
25penalties that may be assessed as an incident thereof shall be
26collected and enforced by the Department and deposited into a

 

 

HB4326 Enrolled- 5 -LRB102 21969 AWJ 31096 b

1special fund created for that purpose. The Department has full
2power to administer and enforce this subsection, to collect
3all taxes and penalties due under this subsection, to dispose
4of taxes and penalties so collected in the manner provided in
5this subsection, and to determine all rights to credit
6memoranda arising on account of the erroneous payment of a tax
7or penalty under this subsection.
8    In the administration of and compliance with this
9subsection, the Department and persons who are subject to this
10subsection shall (i) have the same rights, remedies,
11privileges, immunities, powers and duties, (ii) be subject to
12the same conditions, restrictions, limitations, penalties and
13definition of terms, and (iii) employ the same modes of
14procedure as are set forth in Sections 2 (except that that
15reference to State in the definition of supplier maintaining a
16place of business in this State means the county), 2a through
172d, 3 through 3-50 (in respect to all provisions contained in
18those Sections other than the State rate of tax), 4 (except
19that the reference to the State shall be to the county), 5, 7,
208 (except that the jurisdiction to which the tax is a debt to
21the extent indicated in that Section 8 is the county), 9
22(except as to the disposition of taxes and penalties
23collected, and except that the retailer's discount is not
24allowed for taxes paid on aviation fuel that are subject to the
25revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
2647133), 10, 11, 12 (except the reference therein to Section 2b

 

 

HB4326 Enrolled- 6 -LRB102 21969 AWJ 31096 b

1of the Retailers' Occupation Tax Act), 13 (except that any
2reference to the State means the county), Section 15, 16, 17,
318, 19, and 20 of the Service Occupation Tax Act and all
4provisions of the Uniform Penalty and Interest Act, as fully
5as if those provisions were set forth herein.
6    Persons subject to any tax imposed under the authority
7granted in this subsection may reimburse themselves for their
8serviceman's tax liability by separately stating the tax as an
9additional charge, which may be stated in combination, in a
10single amount, with State tax that servicemen are authorized
11to collect under the Service Use Tax Act, pursuant to any
12bracketed schedules set forth by the Department.
13    (c) The tax under this Section may not be imposed until the
14question of imposing the tax has been submitted to the
15electors of the county at a regular election and approved by a
16majority of the electors voting on the question. For all
17regular elections held prior to August 23, 2011 (the effective
18date of Public Act 97-542), upon a resolution by the county
19board or a resolution by school district boards that represent
20at least 51% of the student enrollment within the county, the
21county board must certify the question to the proper election
22authority in accordance with the Election Code.
23    For all regular elections held prior to August 23, 2011
24(the effective date of Public Act 97-542), the election
25authority must submit the question in substantially the
26following form:

 

 

HB4326 Enrolled- 7 -LRB102 21969 AWJ 31096 b

1        Shall (name of county) be authorized to impose a
2    retailers' occupation tax and a service occupation tax
3    (commonly referred to as a "sales tax") at a rate of
4    (insert rate) to be used exclusively for school facility
5    purposes?
6    The election authority must record the votes as "Yes" or
7"No".
8    If a majority of the electors voting on the question vote
9in the affirmative, then the county may, thereafter, impose
10the tax.
11    For all regular elections held on or after August 23, 2011
12(the effective date of Public Act 97-542), the regional
13superintendent of schools for the county must, upon receipt of
14a resolution or resolutions of school district boards that
15represent more than 50% of the student enrollment within the
16county, certify the question to the proper election authority
17for submission to the electors of the county at the next
18regular election at which the question lawfully may be
19submitted to the electors, all in accordance with the Election
20Code.
21    For all regular elections held on or after August 23, 2011
22(the effective date of Public Act 97-542) and before August
2323, 2019 (the effective date of Public Act 101-455), the
24election authority must submit the question in substantially
25the following form:
26        Shall a retailers' occupation tax and a service

 

 

HB4326 Enrolled- 8 -LRB102 21969 AWJ 31096 b

1    occupation tax (commonly referred to as a "sales tax") be
2    imposed in (name of county) at a rate of (insert rate) to
3    be used exclusively for school facility purposes?
4    The election authority must record the votes as "Yes" or
5"No".
6    If a majority of the electors voting on the question vote
7in the affirmative, then the tax shall be imposed at the rate
8set forth in the question.
9    For all regular elections held on or after August 23, 2019
10(the effective date of Public Act 101-455), the election
11authority must submit the question as follows:
12        (1) If the referendum is to expand the use of revenues
13    from a currently imposed tax exclusively for school
14    facility purposes to include school resource officers and
15    mental health professionals, the question shall be in
16    substantially the following form:
17            In addition to school facility purposes, shall
18        (name of county) school districts be authorized to use
19        revenues from the tax commonly referred to as the
20        school facility sales tax that is currently imposed in
21        (name of county) at a rate of (insert rate) for school
22        resource officers and mental health professionals?
23        (2) If the referendum is to increase the rate of a tax
24    currently imposed exclusively for school facility purposes
25    at less than 1% and dedicate the additional revenues for
26    school resource officers and mental health professionals,

 

 

HB4326 Enrolled- 9 -LRB102 21969 AWJ 31096 b

1    the question shall be in substantially the following form:
2            Shall the tax commonly referred to as the school
3        facility sales tax that is currently imposed in (name
4        of county) at the rate of (insert rate) be increased to
5        a rate of (insert rate) with the additional revenues
6        used exclusively for school resource officers and
7        mental health professionals?
8        (3) If the referendum is to impose a tax in a county
9    that has not previously imposed a tax under this Section
10    exclusively for school facility purposes, the question
11    shall be in substantially the following form:
12            Shall a retailers' occupation tax and a service
13        occupation tax (commonly referred to as a sales tax)
14        be imposed in (name of county) at a rate of (insert
15        rate) to be used exclusively for school facility
16        purposes?
17        (4) If the referendum is to impose a tax in a county
18    that has not previously imposed a tax under this Section
19    exclusively for school resource officers and mental health
20    professionals, the question shall be in substantially the
21    following form:
22            Shall a retailers' occupation tax and a service
23        occupation tax (commonly referred to as a sales tax)
24        be imposed in (name of county) at a rate of (insert
25        rate) to be used exclusively for school resource
26        officers and mental health professionals?

 

 

HB4326 Enrolled- 10 -LRB102 21969 AWJ 31096 b

1        (5) If the referendum is to impose a tax in a county
2    that has not previously imposed a tax under this Section
3    exclusively for school facility purposes, school resource
4    officers, and mental health professionals, the question
5    shall be in substantially the following form:
6            Shall a retailers' occupation tax and a service
7        occupation tax (commonly referred to as a sales tax)
8        be imposed in (name of county) at a rate of (insert
9        rate) to be used exclusively for school facility
10        purposes, school resource officers, and mental health
11        professionals?
12    The election authority must record the votes as "Yes" or
13"No".
14    If a majority of the electors voting on the question vote
15in the affirmative, then the tax shall be imposed at the rate
16set forth in the question.
17    For the purposes of this subsection (c), "enrollment"
18means the head count of the students residing in the county on
19the last school day of September of each year, which must be
20reported on the Illinois State Board of Education Public
21School Fall Enrollment/Housing Report.
22    (d) Except as otherwise provided, the Department shall
23immediately pay over to the State Treasurer, ex officio, as
24trustee, all taxes and penalties collected under this Section
25to be deposited into the School Facility Occupation Tax Fund,
26which shall be an unappropriated trust fund held outside the

 

 

HB4326 Enrolled- 11 -LRB102 21969 AWJ 31096 b

1State treasury. Taxes and penalties collected on aviation fuel
2sold on or after December 1, 2019 and through December 31,
32020, shall be immediately paid over by the Department to the
4State Treasurer, ex officio, as trustee, for deposit into the
5Local Government Aviation Trust Fund. The Department shall
6only pay moneys into the Local Government Aviation Trust Fund
7under this Section for so long as the revenue use requirements
8of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
9county.
10    On or before the 25th day of each calendar month, the
11Department shall prepare and certify to the Comptroller the
12disbursement of stated sums of money to the regional
13superintendents of schools in counties from which retailers or
14servicemen have paid taxes or penalties to the Department
15during the second preceding calendar month. The amount to be
16paid to each regional superintendent of schools and disbursed
17to him or her in accordance with Section 3-14.31 of the School
18Code, is equal to the amount (not including credit memoranda
19and not including taxes and penalties collected on aviation
20fuel sold on or after December 1, 2019 and through December 31,
212020) collected from the county under this Section during the
22second preceding calendar month by the Department, (i) less 2%
23of that amount (except the amount collected on aviation fuel
24sold on or after December 1, 2019 and through December 31,
252020), of which 50% shall be deposited into the Tax Compliance
26and Administration Fund and shall be used by the Department,

 

 

HB4326 Enrolled- 12 -LRB102 21969 AWJ 31096 b

1subject to appropriation, to cover the costs of the Department
2in administering and enforcing the provisions of this Section,
3on behalf of the county, and 50% shall be distributed to the
4regional superintendent of schools to cover the costs in
5administering and enforcing the provisions of this Section,
6(ii) plus an amount that the Department determines is
7necessary to offset any amounts that were erroneously paid to
8a different taxing body; (iii) less an amount equal to the
9amount of refunds made during the second preceding calendar
10month by the Department on behalf of the county; and (iv) less
11any amount that the Department determines is necessary to
12offset any amounts that were payable to a different taxing
13body but were erroneously paid to the county. When certifying
14the amount of a monthly disbursement to a regional
15superintendent of schools under this Section, the Department
16shall increase or decrease the amounts by an amount necessary
17to offset any miscalculation of previous disbursements within
18the previous 6 months from the time a miscalculation is
19discovered.
20    Within 10 days after receipt by the Comptroller from the
21Department of the disbursement certification to the regional
22superintendents of the schools provided for in this Section,
23the Comptroller shall cause the orders to be drawn for the
24respective amounts in accordance with directions contained in
25the certification.
26    If the Department determines that a refund should be made

 

 

HB4326 Enrolled- 13 -LRB102 21969 AWJ 31096 b

1under this Section to a claimant instead of issuing a credit
2memorandum, then the Department shall notify the Comptroller,
3who shall cause the order to be drawn for the amount specified
4and to the person named in the notification from the
5Department. The refund shall be paid by the Treasurer out of
6the School Facility Occupation Tax Fund or the Local
7Government Aviation Trust Fund, as appropriate.
8    (e) For the purposes of determining the local governmental
9unit whose tax is applicable, a retail sale by a producer of
10coal or another mineral mined in Illinois is a sale at retail
11at the place where the coal or other mineral mined in Illinois
12is extracted from the earth. This subsection does not apply to
13coal or another mineral when it is delivered or shipped by the
14seller to the purchaser at a point outside Illinois so that the
15sale is exempt under the United States Constitution as a sale
16in interstate or foreign commerce.
17    (f) Nothing in this Section may be construed to authorize
18a tax to be imposed upon the privilege of engaging in any
19business that under the Constitution of the United States may
20not be made the subject of taxation by this State.
21    (g) If a county board imposes a tax under this Section
22pursuant to a referendum held before August 23, 2011 (the
23effective date of Public Act 97-542) at a rate below the rate
24set forth in the question approved by a majority of electors of
25that county voting on the question as provided in subsection
26(c), then the county board may, by ordinance, increase the

 

 

HB4326 Enrolled- 14 -LRB102 21969 AWJ 31096 b

1rate of the tax up to the rate set forth in the question
2approved by a majority of electors of that county voting on the
3question as provided in subsection (c). If a county board
4imposes a tax under this Section pursuant to a referendum held
5before August 23, 2011 (the effective date of Public Act
697-542), then the board may, by ordinance, discontinue or
7reduce the rate of the tax. If a tax is imposed under this
8Section pursuant to a referendum held on or after August 23,
92011 (the effective date of Public Act 97-542) and before
10August 23, 2019 (the effective date of Public Act 101-455),
11then the county board may reduce or discontinue the tax, but
12only in accordance with subsection (h-5) of this Section. If a
13tax is imposed under this Section pursuant to a referendum
14held on or after August 23, 2019 (the effective date of Public
15Act 101-455), then the county board may reduce or discontinue
16the tax, but only in accordance with subsection (h-10). If,
17however, a school board issues bonds that are secured by the
18proceeds of the tax under this Section, then the county board
19may not reduce the tax rate or discontinue the tax if that rate
20reduction or discontinuance would adversely affect the school
21board's ability to pay the principal and interest on those
22bonds as they become due or necessitate the extension of
23additional property taxes to pay the principal and interest on
24those bonds. If the county board reduces the tax rate or
25discontinues the tax, then a referendum must be held in
26accordance with subsection (c) of this Section in order to

 

 

HB4326 Enrolled- 15 -LRB102 21969 AWJ 31096 b

1increase the rate of the tax or to reimpose the discontinued
2tax.
3    Until January 1, 2014, the results of any election that
4imposes, reduces, or discontinues a tax under this Section
5must be certified by the election authority, and any ordinance
6that increases or lowers the rate or discontinues the tax must
7be certified by the county clerk and, in each case, filed with
8the Illinois Department of Revenue either (i) on or before the
9first day of April, whereupon the Department shall proceed to
10administer and enforce the tax or change in the rate as of the
11first day of July next following the filing; or (ii) on or
12before the first day of October, whereupon the Department
13shall proceed to administer and enforce the tax or change in
14the rate as of the first day of January next following the
15filing.
16    Beginning January 1, 2014, the results of any election
17that imposes, reduces, or discontinues a tax under this
18Section must be certified by the election authority, and any
19ordinance that increases or lowers the rate or discontinues
20the tax must be certified by the county clerk and, in each
21case, filed with the Illinois Department of Revenue either (i)
22on or before the first day of May, whereupon the Department
23shall proceed to administer and enforce the tax or change in
24the rate as of the first day of July next following the filing;
25or (ii) on or before the first day of October, whereupon the
26Department shall proceed to administer and enforce the tax or

 

 

HB4326 Enrolled- 16 -LRB102 21969 AWJ 31096 b

1change in the rate as of the first day of January next
2following the filing.
3    (h) For purposes of this Section, "school facility
4purposes" means (i) the acquisition, development,
5construction, reconstruction, rehabilitation, improvement,
6financing, architectural planning, and installation of capital
7facilities consisting of buildings, structures, and durable
8equipment and for the acquisition and improvement of real
9property and interest in real property required, or expected
10to be required, in connection with the capital facilities and
11(ii) the payment of bonds or other obligations heretofore or
12hereafter issued, including bonds or other obligations
13heretofore or hereafter issued to refund or to continue to
14refund bonds or other obligations issued, for school facility
15purposes, provided that the taxes levied to pay those bonds
16are abated by the amount of the taxes imposed under this
17Section that are used to pay those bonds. "School facility
18purposes" also includes fire prevention, safety, energy
19conservation, accessibility, school security, and specified
20repair purposes set forth under Section 17-2.11 of the School
21Code.
22    (h-5) A county board in a county where a tax has been
23imposed under this Section pursuant to a referendum held on or
24after August 23, 2011 (the effective date of Public Act
2597-542) and before August 23, 2019 (the effective date of
26Public Act 101-455) may, by ordinance or resolution, submit to

 

 

HB4326 Enrolled- 17 -LRB102 21969 AWJ 31096 b

1the voters of the county the question of reducing or
2discontinuing the tax. In the ordinance or resolution, the
3county board shall certify the question to the proper election
4authority in accordance with the Election Code. The election
5authority must submit the question in substantially the
6following form:
7        Shall the school facility retailers' occupation tax
8    and service occupation tax (commonly referred to as the
9    "school facility sales tax") currently imposed in (name of
10    county) at a rate of (insert rate) be (reduced to (insert
11    rate))(discontinued)?
12If a majority of the electors voting on the question vote in
13the affirmative, then, subject to the provisions of subsection
14(g) of this Section, the tax shall be reduced or discontinued
15as set forth in the question.
16    (h-10) A county board in a county where a tax has been
17imposed under this Section pursuant to a referendum held on or
18after August 23, 2019 (the effective date of Public Act
19101-455) may, by ordinance or resolution, submit to the voters
20of the county the question of reducing or discontinuing the
21tax. In the ordinance or resolution, the county board shall
22certify the question to the proper election authority in
23accordance with the Election Code. The election authority must
24submit the question in substantially the following form:
25        Shall the school facility and resources retailers'
26    occupation tax and service occupation tax (commonly

 

 

HB4326 Enrolled- 18 -LRB102 21969 AWJ 31096 b

1    referred to as the school facility and resources sales
2    tax) currently imposed in (name of county) at a rate of
3    (insert rate) be (reduced to (insert rate))
4    (discontinued)?
5    The election authority must record the votes as "Yes" or
6"No".
7    If a majority of the electors voting on the question vote
8in the affirmative, then, subject to the provisions of
9subsection (g) of this Section, the tax shall be reduced or
10discontinued as set forth in the question.
11    (i) This Section does not apply to Cook County.
12    (j) This Section may be cited as the County School
13Facility and Resources Occupation Tax Law.
14(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19;
15101-455, eff. 8-23-19; 101-604, eff. 12-13-19.)
 
16    Section 99. Effective date. This Act takes effect July 1,
172022.