Full Text of SB2170 97th General Assembly
SB2170enr 97TH GENERAL ASSEMBLY |
| | SB2170 Enrolled | | LRB097 09013 PJG 49147 b |
|
| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Local Government Debt Reform Act is amended | 5 | | by changing Section 15 as follows:
| 6 | | (30 ILCS 350/15) (from Ch. 17, par. 6915)
| 7 | | Sec. 15. Double-barrelled bonds. Whenever revenue bonds | 8 | | have been
authorized to be issued pursuant to applicable law or | 9 | | whenever there exists
for a governmental unit a revenue source, | 10 | | the procedures set forth in this
Section may be used by a | 11 | | governing body. General obligation bonds may be
issued in lieu | 12 | | of such revenue bonds as authorized, and general obligation
| 13 | | bonds may be issued payable from any revenue source. Such | 14 | | general
obligation bonds may be referred to as "alternate | 15 | | bonds". Alternate bonds
may be issued without any referendum or | 16 | | backdoor referendum except as
provided in this Section, upon | 17 | | the terms provided in Section 10 of this Act
without reference | 18 | | to other provisions of law, but only upon the conditions
| 19 | | provided in this Section. Alternate bonds shall not be regarded | 20 | | as or
included in any computation of indebtedness for the | 21 | | purpose of any
statutory provision or limitation except as | 22 | | expressly provided in this Section.
| 23 | | Such conditions are:
|
| | | SB2170 Enrolled | - 2 - | LRB097 09013 PJG 49147 b |
|
| 1 | | (a) Alternate bonds shall be issued for a lawful
corporate | 2 | | purpose. If issued in lieu of revenue bonds, alternate bonds
| 3 | | shall be issued for the purposes for which such revenue bonds | 4 | | shall have
been authorized. If issued payable from a revenue | 5 | | source in the manner
hereinafter provided, which revenue source | 6 | | is limited in its purposes or
applications, then the alternate | 7 | | bonds shall be issued only for such
limited purposes or | 8 | | applications. Alternate bonds may be issued payable
from either | 9 | | enterprise revenues or revenue sources, or both.
| 10 | | (b) Alternate bonds shall be subject to backdoor | 11 | | referendum. The
provisions of Section 5 of this Act shall apply | 12 | | to such backdoor
referendum, together with the provisions | 13 | | hereof. The authorizing ordinance
shall be published in a | 14 | | newspaper of general circulation in the
governmental unit. | 15 | | Along with or as part of the authorizing ordinance,
there shall | 16 | | be published a notice of (1) the specific number of voters
| 17 | | required to sign a petition requesting that the issuance of the | 18 | | alternate
bonds be submitted to referendum, (2) the time when | 19 | | such petition must
be filed, (3) the date of the prospective | 20 | | referendum, and
(4), with respect to authorizing ordinances | 21 | | adopted on or after January 1,
1991, a statement that | 22 | | identifies any revenue source that will be used to
pay debt | 23 | | service on the alternate bonds.
The clerk or
secretary of the | 24 | | governmental unit shall make a petition form available to
| 25 | | anyone requesting one. If no petition is filed with the clerk | 26 | | or secretary
within 30 days of publication of the authorizing |
| | | SB2170 Enrolled | - 3 - | LRB097 09013 PJG 49147 b |
|
| 1 | | ordinance and notice, the
alternate bonds shall be authorized | 2 | | to be issued. But if within this 30
days period, a petition is | 3 | | filed with such clerk or secretary signed by
electors numbering | 4 | | the greater of (i) 7.5% of the registered
voters in the | 5 | | governmental unit or (ii) 200 of those registered voters or
15% | 6 | | of those registered voters, whichever is less,
asking that the | 7 | | issuance of such alternate bonds be submitted to
referendum, | 8 | | the clerk or secretary shall certify such question for
| 9 | | submission at an election held in accordance with the general | 10 | | election law.
The question on the ballot shall include a | 11 | | statement of any
revenue source that will be used to pay debt | 12 | | service on
the alternate bonds. The alternate bonds shall be | 13 | | authorized to be issued
if a majority of the votes cast on the | 14 | | question at such election are in
favor thereof
provided that | 15 | | notice of the bond referendum, if held before July 1, 1999,
has | 16 | | been given in accordance with the provisions of Section
12-5
of | 17 | | the Election Code
in effect at the time of the bond referendum, | 18 | | at least 10 and not more than
45 days before the date of
the | 19 | | election, notwithstanding the time for publication otherwise | 20 | | imposed by
Section 12-5.
Notices required in connection with | 21 | | the submission of public questions
on or after July 1, 1999 | 22 | | shall be as set forth in Section 12-5 of the Election
Code.
| 23 | | Backdoor referendum proceedings for bonds and alternate
bonds | 24 | | to be issued in lieu of such bonds may be conducted at the same | 25 | | time.
| 26 | | (c) To the extent payable from enterprise revenues, such |
| | | SB2170 Enrolled | - 4 - | LRB097 09013 PJG 49147 b |
|
| 1 | | revenues shall
have been determined by the governing body to be | 2 | | sufficient to provide for
or pay in each year to final maturity | 3 | | of such alternate bonds all of the
following: (1) costs of | 4 | | operation and maintenance of the utility or
enterprise, but not | 5 | | including depreciation, (2) debt service on all
outstanding | 6 | | revenue bonds payable from such enterprise revenues, (3) all
| 7 | | amounts required to meet any fund or account requirements with | 8 | | respect to
such outstanding revenue bonds, (4) other | 9 | | contractual or tort liability
obligations, if any, payable from | 10 | | such enterprise revenues, and (5) in each
year, an amount not | 11 | | less than 1.25 times debt service of all (i) alternate
bonds | 12 | | payable from such enterprise revenues previously issued and
| 13 | | outstanding and (ii) alternate bonds proposed to be issued.
To | 14 | | the extent
payable from one or more revenue sources, such | 15 | | sources shall have been
determined by the governing body to | 16 | | provide in each year, an amount not
less than 1.25 times debt | 17 | | service of all alternate bonds payable from such
revenue | 18 | | sources previously issued and outstanding and alternate bonds
| 19 | | proposed to be issued.
The 1.25 figure in the preceding | 20 | | sentence shall be reduced to 1.10 if the
revenue source is a | 21 | | governmental revenue source.
The conditions enumerated in this | 22 | | subsection (c)
need not be met for that amount of debt service | 23 | | provided for by the setting
aside of proceeds of bonds or other | 24 | | moneys at the time of the delivery of
such bonds. | 25 | | Notwithstanding any other provision of this Section, a backdoor | 26 | | referendum is not required if the proceeds backing the debt are |
| | | SB2170 Enrolled | - 5 - | LRB097 09013 PJG 49147 b |
|
| 1 | | realized from revenues obtained from the County School Facility | 2 | | Occupation Tax Law under Section 5-1006.7 of the Counties Code.
| 3 | | (c-1) In the case of alternate bonds issued as variable | 4 | | rate bonds
(including
refunding bonds), debt service shall be | 5 | | projected based on the rate for the
most recent
date shown in | 6 | | the 20 G.O. Bond Index of average municipal bond yields as
| 7 | | published in
the most recent edition of The Bond Buyer | 8 | | published in New York, New York (or
any
successor publication | 9 | | or index, or if such publication or index is no longer
| 10 | | published,
then any index of long-term municipal tax-exempt | 11 | | bond yields selected by the
governmental unit), as of the date | 12 | | of determination referred to in subsection (c) of this
Section. | 13 | | Any interest or fees that may be payable to the provider of a | 14 | | letter of credit, line
of credit, surety bond, bond insurance, | 15 | | or other credit enhancement relating to such
alternate bonds | 16 | | and any fees that may be payable to any remarketing agent need | 17 | | not be
taken into account for purposes of such projection. If | 18 | | the governmental unit enters into
an agreement in connection | 19 | | with such alternate bonds at the time of issuance
thereof
| 20 | | pursuant to which the governmental unit agrees for a specified | 21 | | period of time
to pay an
amount calculated at an agreed-upon | 22 | | rate or index based on a notional amount
and the other party | 23 | | agrees to pay the governmental unit an amount calculated at
an | 24 | | agreed-upon rate or index based on such notional amount, | 25 | | interest
shall be projected for such specified period of time | 26 | | on the basis of the
agreed-upon rate
payable by the |
| | | SB2170 Enrolled | - 6 - | LRB097 09013 PJG 49147 b |
|
| 1 | | governmental unit.
| 2 | | (d) The determination of the sufficiency of enterprise | 3 | | revenues or a
revenue source, as applicable, shall be supported | 4 | | by reference to the most
recent audit of the governmental unit, | 5 | | which shall be for a fiscal year
ending not earlier than 18 | 6 | | months previous to the time of issuance of the
alternate bonds. | 7 | | If such audit does not adequately show such enterprise
revenues | 8 | | or revenue source, as applicable, or if such enterprise | 9 | | revenues
or revenue source, as applicable, are shown to be | 10 | | insufficient, then the
determination of sufficiency shall be | 11 | | supported by the report of an
independent accountant or | 12 | | feasibility analyst, the latter having a national
reputation
| 13 | | for expertise in such matters, demonstrating the sufficiency of | 14 | | such
revenues and explaining, if appropriate, by what means the | 15 | | revenues will be
greater than as shown in the audit. Whenever | 16 | | such sufficiency is
demonstrated by reference to a schedule of | 17 | | higher rates or charges for
enterprise revenues or a higher tax | 18 | | imposition for a revenue source, such
higher rates, charges or | 19 | | taxes shall have been properly imposed by an
ordinance adopted | 20 | | prior to the time of delivery of alternate bonds. The
reference | 21 | | to and acceptance of an audit or report, as the case may be, | 22 | | and
the determination of the governing body as to sufficiency | 23 | | of enterprise
revenues or a revenue source shall be conclusive | 24 | | evidence that the
conditions of this Section have been met and | 25 | | that the alternate bonds
are valid.
| 26 | | (e) The enterprise revenues or revenue source, as |
| | | SB2170 Enrolled | - 7 - | LRB097 09013 PJG 49147 b |
|
| 1 | | applicable, shall be
in fact pledged to the payment of the | 2 | | alternate bonds; and the governing
body shall covenant, to the | 3 | | extent it is empowered to do so, to provide
for, collect and | 4 | | apply such enterprise revenues or revenue source, as
| 5 | | applicable, to the payment of the alternate bonds and the | 6 | | provision of
not less than an additional .25 (or .10 for | 7 | | governmental revenue sources)
times debt service. The pledge | 8 | | and
establishment of rates or charges for enterprise revenues, | 9 | | or the
imposition of taxes in a given rate or amount, as | 10 | | provided in this Section
for alternate bonds, shall constitute | 11 | | a continuing obligation of the
governmental unit with respect | 12 | | to such establishment or imposition and a
continuing | 13 | | appropriation of the amounts received. All covenants relating
| 14 | | to alternate bonds and the conditions and obligations imposed | 15 | | by this
Section are enforceable by any bondholder of alternate | 16 | | bonds affected, any
taxpayer of the governmental unit, and the | 17 | | People of the State of Illinois
acting through the Attorney | 18 | | General or any designee, and in the event that
any such action | 19 | | results in an order finding that the governmental unit has
not | 20 | | properly set rates or charges or imposed taxes to the extent it | 21 | | is
empowered to do so or collected and applied enterprise | 22 | | revenues or any
revenue source, as applicable, as required by | 23 | | this Act, the plaintiff in
any such action shall be awarded | 24 | | reasonable attorney's fees. The intent is
that such enterprise | 25 | | revenues or revenue source, as applicable, shall be
sufficient | 26 | | and shall be applied to the payment of debt service on such
|
| | | SB2170 Enrolled | - 8 - | LRB097 09013 PJG 49147 b |
|
| 1 | | alternate bonds so that taxes need not be levied, or if levied | 2 | | need not be
extended, for such payment. Nothing in this Section | 3 | | shall inhibit or
restrict the authority of a governing body to | 4 | | determine the lien priority
of any bonds, including alternate | 5 | | bonds, which may be issued with respect
to any enterprise | 6 | | revenues or revenue source.
| 7 | | In the event that alternate bonds shall have been issued | 8 | | and taxes, other
than a designated revenue source, shall have | 9 | | been extended pursuant to the
general obligation, full faith | 10 | | and credit promise supporting such alternate
bonds, then the | 11 | | amount of such alternate bonds then outstanding shall be
| 12 | | included in the computation of indebtedness of the governmental | 13 | | unit for
purposes of all statutory provisions or limitations | 14 | | until such time as an
audit of the governmental unit shall show | 15 | | that the alternate bonds have
been paid from the enterprise | 16 | | revenues or revenue source, as applicable,
pledged thereto for | 17 | | a complete fiscal year.
| 18 | | Alternate bonds may be issued to refund or advance refund | 19 | | alternate bonds
without meeting any of the conditions set forth | 20 | | in this Section, except
that the term of the refunding bonds | 21 | | shall not be longer than the term of
the refunded bonds and | 22 | | that the debt service payable in any year on the
refunding | 23 | | bonds shall not exceed the debt service payable in such year on
| 24 | | the refunded bonds.
| 25 | | Once issued, alternate bonds shall be and forever remain | 26 | | until paid or
defeased the general obligation of the |
| | | SB2170 Enrolled | - 9 - | LRB097 09013 PJG 49147 b |
|
| 1 | | governmental unit, for the payment
of which its full faith and | 2 | | credit are pledged, and shall be payable from
the levy of taxes | 3 | | as is provided in this Act for general obligation bonds.
| 4 | | The changes made by this amendatory Act of 1990 do not | 5 | | affect the
validity of bonds authorized before September 1, | 6 | | 1990.
| 7 | | (Source: P.A. 95-675, eff. 10-11-07.)
| 8 | | Section 10. The Counties Code is amended by changing | 9 | | Section 5-1006.7 as follows: | 10 | | (55 ILCS 5/5-1006.7) | 11 | | Sec. 5-1006.7. School facility occupation taxes. | 12 | | (a) In The county board of any county , may impose a tax | 13 | | shall be imposed upon all persons engaged in the business of | 14 | | selling tangible personal property, other than personal | 15 | | property titled or registered with an agency of this State's | 16 | | government, at retail in the county on the gross receipts from | 17 | | the sales made in the course of business to provide revenue to | 18 | | be used exclusively for school facility purposes if a | 19 | | proposition for the tax has been submitted to the electors of | 20 | | that county and approved by a majority of those voting on the | 21 | | question as provided in subsection (c). The tax under this | 22 | | Section shall may be imposed only in one-quarter percent | 23 | | increments and may not exceed 1%. | 24 | | This additional tax may not be imposed on the sale of food |
| | | SB2170 Enrolled | - 10 - | LRB097 09013 PJG 49147 b |
|
| 1 | | for human consumption that is to be consumed off the premises | 2 | | where it is sold (other than alcoholic beverages, soft drinks, | 3 | | and food that has been prepared for immediate consumption) and | 4 | | prescription and non-prescription medicines, drugs, medical | 5 | | appliances and insulin, urine testing materials, syringes and | 6 | | needles used by diabetics.
The Department of Revenue has full | 7 | | power to administer and enforce this subsection, to collect all | 8 | | taxes and penalties due under this subsection, to dispose of | 9 | | taxes and penalties so collected in the manner provided in this | 10 | | subsection, and to determine all rights to credit memoranda | 11 | | arising on account of the erroneous payment of a tax or penalty | 12 | | under this subsection. The Department shall deposit all taxes | 13 | | and penalties collected under this subsection into a special | 14 | | fund created for that purpose. | 15 | | In the administration of and compliance with this | 16 | | subsection, the Department and persons who are subject to this | 17 | | subsection (i) have the same rights, remedies, privileges, | 18 | | immunities, powers, and duties, (ii) are subject to the same | 19 | | conditions, restrictions, limitations, penalties, and | 20 | | definitions of terms, and (iii) shall employ the same modes of | 21 | | procedure as are set forth in Sections 1 through 1o, 2 through | 22 | | 2-70 (in respect to all provisions contained in those Sections | 23 | | other than the State rate of tax), 2a through 2h, 3 (except as | 24 | | to the disposition of taxes and penalties collected), 4, 5, 5a, | 25 | | 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, | 26 | | 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act |
| | | SB2170 Enrolled | - 11 - | LRB097 09013 PJG 49147 b |
|
| 1 | | and all provisions of the Uniform Penalty and Interest Act as | 2 | | if those provisions were set forth in this subsection. | 3 | | The certificate of registration that is issued by the | 4 | | Department to a retailer under the Retailers' Occupation Tax | 5 | | Act permits the retailer to engage in a business that is | 6 | | taxable without registering separately with the Department | 7 | | under an ordinance or resolution under this subsection. | 8 | | Persons subject to any tax imposed under the authority | 9 | | granted in this subsection may reimburse themselves for their | 10 | | seller's tax liability by separately stating that tax as an | 11 | | additional charge, which may be stated in combination, in a | 12 | | single amount, with State tax that sellers are required to | 13 | | collect under the Use Tax Act, pursuant to any bracketed | 14 | | schedules set forth by the Department. | 15 | | (b) If a tax has been imposed under subsection (a), then a | 16 | | service occupation tax must also be imposed at the same rate | 17 | | upon all persons engaged, in the county, in the business of | 18 | | making sales of service, who, as an incident to making those | 19 | | sales of service, transfer tangible personal property within | 20 | | the county as an incident to a sale of service. | 21 | | This tax may not be imposed on sales of food for human | 22 | | consumption that is to be consumed off the premises where it is | 23 | | sold (other than alcoholic beverages, soft drinks, and food | 24 | | prepared for immediate consumption) and prescription and | 25 | | non-prescription medicines, drugs, medical appliances and | 26 | | insulin, urine testing materials, syringes, and needles used by |
| | | SB2170 Enrolled | - 12 - | LRB097 09013 PJG 49147 b |
|
| 1 | | diabetics. | 2 | | The tax imposed under this subsection and all civil | 3 | | penalties that may be assessed as an incident thereof shall be | 4 | | collected and enforced by the Department and deposited into a | 5 | | special fund created for that purpose. The Department has full | 6 | | power to administer and enforce this subsection, to collect all | 7 | | taxes and penalties due under this subsection, to dispose of | 8 | | taxes and penalties so collected in the manner provided in this | 9 | | subsection, and to determine all rights to credit memoranda | 10 | | arising on account of the erroneous payment of a tax or penalty | 11 | | under this subsection. | 12 | | In the administration of and compliance with this | 13 | | subsection, the Department and persons who are subject to this | 14 | | subsection shall (i) have the same rights, remedies, | 15 | | privileges, immunities, powers and duties, (ii) be subject to | 16 | | the same conditions, restrictions, limitations, penalties and | 17 | | definition of terms, and (iii) employ the same modes of | 18 | | procedure as are set forth in Sections 2 (except that that | 19 | | reference to State in the definition of supplier maintaining a | 20 | | place of business in this State means the county), 2a through | 21 | | 2d, 3 through 3-50 (in respect to all provisions contained in | 22 | | those Sections other than the State rate of tax), 4 (except | 23 | | that the reference to the State shall be to the county), 5, 7, | 24 | | 8 (except that the jurisdiction to which the tax is a debt to | 25 | | the extent indicated in that Section 8 is the county), 9 | 26 | | (except as to the disposition of taxes and penalties |
| | | SB2170 Enrolled | - 13 - | LRB097 09013 PJG 49147 b |
|
| 1 | | collected), 10, 11, 12 (except the reference therein to Section | 2 | | 2b of the Retailers' Occupation Tax Act), 13 (except that any | 3 | | reference to the State means the county), Section 15, 16, 17, | 4 | | 18, 19, and 20 of the Service Occupation Tax Act and all | 5 | | provisions of the Uniform Penalty and Interest Act, as fully as | 6 | | if those provisions were set forth herein. | 7 | | Persons subject to any tax imposed under the authority | 8 | | granted in this subsection may reimburse themselves for their | 9 | | serviceman's tax liability by separately stating the tax as an | 10 | | additional charge, which may be stated in combination, in a | 11 | | single amount, with State tax that servicemen are authorized to | 12 | | collect under the Service Use Tax Act, pursuant to any | 13 | | bracketed schedules set forth by the Department. | 14 | | (c) The tax under this Section may not be imposed until , by | 15 | | ordinance or resolution of the county board, the question of | 16 | | imposing the tax has been submitted to the electors of the | 17 | | county at a regular election and approved by a majority of the | 18 | | electors voting on the question. For all regular elections held | 19 | | prior to the effective date of this amendatory Act of the 97th | 20 | | General Assembly, upon Upon a resolution by the county board or | 21 | | a resolution by school district boards that represent at least | 22 | | 51% of the student enrollment within the county, the county | 23 | | board must certify the question to the proper election | 24 | | authority in accordance with the Election Code. | 25 | | For all regular elections held prior to the effective date | 26 | | of this amendatory Act of the 97th General Assembly, the The |
| | | SB2170 Enrolled | - 14 - | LRB097 09013 PJG 49147 b |
|
| 1 | | election authority must submit the question in substantially | 2 | | the following form: | 3 | | Shall (name of county) be authorized to impose a | 4 | | retailers' occupation tax and a service occupation tax | 5 | | (commonly referred to as a "sales tax") at a rate of | 6 | | (insert rate) to be used exclusively for school facility | 7 | | purposes? | 8 | | The election authority must record the votes as "Yes" or "No". | 9 | | If a majority of the electors voting on the question vote | 10 | | in the affirmative, then the county may, thereafter, impose the | 11 | | tax. | 12 | | For all regular elections held on or after the effective | 13 | | date of this amendatory Act of the 97th General Assembly, the | 14 | | regional superintendent of schools for the county must, upon | 15 | | receipt of a resolution or resolutions of school district | 16 | | boards that represent more than 50% of the student enrollment | 17 | | within the county, certify the question to the proper election | 18 | | authority for submission to the electors of the county at the | 19 | | next regular election at which the question lawfully may be | 20 | | submitted to the electors, all in accordance with the Election | 21 | | Code. | 22 | | For all regular elections held on or after the effective | 23 | | date of this amendatory Act of the 97th General Assembly, the | 24 | | election authority must submit the question in substantially | 25 | | the following form: | 26 | | Shall a retailers' occupation tax and a service |
| | | SB2170 Enrolled | - 15 - | LRB097 09013 PJG 49147 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 "No". | 5 | | If a majority of the electors voting on the question vote | 6 | | in the affirmative, then the tax shall be imposed at the rate | 7 | | set forth in the question. | 8 | | For the purposes of this subsection (c), "enrollment" means | 9 | | the head count of the students residing in the county on the | 10 | | last school day of September of each year, which must be | 11 | | reported on the Illinois State Board of Education Public School | 12 | | Fall Enrollment/Housing Report.
| 13 | | (d) The Department shall immediately pay over to the State | 14 | | Treasurer, ex officio, as trustee, all taxes and penalties | 15 | | collected under this Section to be deposited into the School | 16 | | Facility Occupation Tax Fund, which shall be an unappropriated | 17 | | trust fund held outside the State treasury. | 18 | | On or before the 25th day of each calendar month, the | 19 | | Department shall prepare and certify to the Comptroller the | 20 | | disbursement of stated sums of money to the regional | 21 | | superintendents of schools in counties from which retailers or | 22 | | servicemen have paid taxes or penalties to the Department | 23 | | during the second preceding calendar month. The amount to be | 24 | | paid to each regional superintendent of schools and disbursed | 25 | | to him or her in accordance with 3-14.31 of the School Code, is | 26 | | equal to the amount (not including credit memoranda) collected |
| | | SB2170 Enrolled | - 16 - | LRB097 09013 PJG 49147 b |
|
| 1 | | from the county under this Section during the second preceding | 2 | | calendar month by the Department, (i) less 2% of that amount, | 3 | | which shall be deposited into the Tax Compliance and | 4 | | Administration Fund and shall be used by the Department, | 5 | | subject to appropriation, to cover the costs of the Department | 6 | | in administering and enforcing the provisions of this Section, | 7 | | on behalf of the county, (ii) plus an amount that the | 8 | | Department determines is necessary to offset any amounts that | 9 | | were erroneously paid to a different taxing body; (iii) less an | 10 | | amount equal to the amount of refunds made during the second | 11 | | preceding calendar month by the Department on behalf of the | 12 | | county; and (iv) less any amount that the Department determines | 13 | | is necessary to offset any amounts that were payable to a | 14 | | different taxing body but were erroneously paid to the county. | 15 | | When certifying the amount of a monthly disbursement to a | 16 | | regional superintendent of schools under this Section, the | 17 | | Department shall increase or decrease the amounts by an amount | 18 | | necessary to offset any miscalculation of previous | 19 | | disbursements within the previous 6 months from the time a | 20 | | miscalculation is discovered. | 21 | | Within 10 days after receipt by the Comptroller from the | 22 | | Department of the disbursement certification to the regional | 23 | | superintendents of the schools provided for in this Section, | 24 | | the Comptroller shall cause the orders to be drawn for the | 25 | | respective amounts in accordance with directions contained in | 26 | | the certification. |
| | | SB2170 Enrolled | - 17 - | LRB097 09013 PJG 49147 b |
|
| 1 | | If the Department determines that a refund should be made | 2 | | under this Section to a claimant instead of issuing a credit | 3 | | memorandum, then the Department shall notify the Comptroller, | 4 | | who shall cause the order to be drawn for the amount specified | 5 | | and to the person named in the notification from the | 6 | | Department. The refund shall be paid by the Treasurer out of | 7 | | the School Facility Occupation Tax Fund.
| 8 | | (e) For the purposes of determining the local governmental | 9 | | unit whose tax is applicable, a retail sale by a producer of | 10 | | coal or another mineral mined in Illinois is a sale at retail | 11 | | at the place where the coal or other mineral mined in Illinois | 12 | | is extracted from the earth. This subsection does not apply to | 13 | | coal or another mineral when it is delivered or shipped by the | 14 | | seller to the purchaser at a point outside Illinois so that the | 15 | | sale is exempt under the United States Constitution as a sale | 16 | | in interstate or foreign commerce. | 17 | | (f) Nothing in this Section may be construed to authorize a | 18 | | county board to impose a tax to be imposed upon the privilege | 19 | | of engaging in any business that under the Constitution of the | 20 | | United States may not be made the subject of taxation by this | 21 | | State. | 22 | | (g) If a county board imposes a tax under this Section | 23 | | pursuant to a referendum held before the effective date of this | 24 | | amendatory Act of the 97th General Assembly at a rate below the | 25 | | rate set forth in the question approved by a majority of | 26 | | electors of that county voting on the question as provided in |
| | | SB2170 Enrolled | - 18 - | LRB097 09013 PJG 49147 b |
|
| 1 | | subsection (c), then the county board may, by ordinance, | 2 | | increase the rate of the tax up to the rate set forth in the | 3 | | question approved by a majority of electors of that county | 4 | | voting on the question as provided in subsection (c). If a | 5 | | county board imposes a tax under this Section pursuant to a | 6 | | referendum held before the effective date of this amendatory | 7 | | Act of the 97th General Assembly , then the board may, by | 8 | | ordinance, discontinue or reduce the rate of the tax. If a tax | 9 | | is imposed under this Section pursuant to a referendum held on | 10 | | or after the effective date of this amendatory Act of the 97th | 11 | | General Assembly, then the county board may reduce or | 12 | | discontinue the tax, but only in accordance with subsection | 13 | | (h-5) of this Section. If, however, a school board issues bonds | 14 | | that are secured backed by the proceeds of the tax under this | 15 | | Section, then the county board may not reduce the tax rate or | 16 | | discontinue the tax if that rate reduction or discontinuance | 17 | | would adversely affect inhibit the school board's ability to | 18 | | pay the principal and interest on those bonds as they become | 19 | | due or necessitate the extension of additional property taxes | 20 | | to pay the principal and interest on those bonds . If the county | 21 | | board reduces the tax rate or discontinues the tax, then a | 22 | | referendum must be held in accordance with subsection (c) of | 23 | | this Section in order to increase the rate of the tax or to | 24 | | reimpose the discontinued tax. | 25 | | The results of any election that imposes, reduces, or | 26 | | discontinues authorizes a proposition to impose a tax under |
| | | SB2170 Enrolled | - 19 - | LRB097 09013 PJG 49147 b |
|
| 1 | | this Section must be certified by the election authority, and | 2 | | or to change the rate of the tax along with an ordinance | 3 | | imposing the tax, or any ordinance that increases or lowers the | 4 | | rate or discontinues the tax , must be certified by the county | 5 | | clerk and , in each case, filed with the Illinois Department of | 6 | | Revenue either (i) on or before the first day of April, | 7 | | whereupon the Department shall proceed to administer and | 8 | | enforce the tax or change in the rate as of the first day of | 9 | | July next following the filing; or (ii) on or before the first | 10 | | day of October, whereupon the Department shall proceed to | 11 | | administer and enforce the tax or change in the rate as of the | 12 | | first day of January next following the filing. | 13 | | (h) For purposes of this Section, "school facility | 14 | | purposes" means (i) the acquisition, development, | 15 | | construction, reconstruction, rehabilitation, improvement, | 16 | | financing, architectural planning, and installation of capital | 17 | | facilities consisting of buildings, structures, and durable | 18 | | equipment and for the acquisition and improvement of real | 19 | | property and interest in real property required, or expected to | 20 | | be required, in connection with the capital facilities and (ii) | 21 | | the payment of bonds or other obligations heretofore or | 22 | | hereafter issued, including bonds or other obligations | 23 | | heretofore or hereafter issued to refund or to continue to | 24 | | refund bonds or other obligations issued, for school facility | 25 | | purposes, provided that the taxes levied to pay those bonds are | 26 | | abated by the amount of the taxes imposed under this Section |
| | | SB2170 Enrolled | - 20 - | LRB097 09013 PJG 49147 b |
|
| 1 | | that are used to pay those bonds . "School-facility purposes" | 2 | | also includes fire prevention, safety, energy conservation, | 3 | | disabled accessibility, school security, and specified repair | 4 | | purposes set forth under Section 17-2.11 of the School Code. | 5 | | (h-5) A county board in a county where a tax has been | 6 | | imposed under this Section pursuant to a referendum held on or | 7 | | after the effective date of this amendatory Act of the 97th | 8 | | General Assembly may, by ordinance or resolution, submit to the | 9 | | voters of the county the question of reducing or discontinuing | 10 | | the tax. In the ordinance or resolution, the county board shall | 11 | | certify the question to the proper election authority in | 12 | | accordance with the Election Code. The election authority must | 13 | | submit the question in substantially the following form: | 14 | | Shall the school facility retailers' occupation tax | 15 | | and service occupation tax (commonly referred to as the | 16 | | "school facility sales tax") currently imposed in (name of | 17 | | county) at a rate of (insert rate) be (reduced to (insert | 18 | | rate))(discontinued)? | 19 | | If a majority of the electors voting on the question vote in | 20 | | the affirmative, then, subject to the provisions of subsection | 21 | | (g) of this Section, the tax shall be reduced or discontinued | 22 | | as set forth in the question. | 23 | | (i) This Section does not apply to Cook County. | 24 | | (j) This Section may be cited as the County School Facility | 25 | | Occupation Tax Law.
| 26 | | (Source: P.A. 95-675, eff. 10-11-07.) |
| | | SB2170 Enrolled | - 21 - | LRB097 09013 PJG 49147 b |
|
| 1 | | Section 15. The School Code is amended by changing Section | 2 | | 10-22.36 as follows:
| 3 | | (105 ILCS 5/10-22.36) (from Ch. 122, par. 10-22.36)
| 4 | | Sec. 10-22.36. Buildings for school purposes. To build or | 5 | | purchase a building for school classroom or
instructional | 6 | | purposes upon the approval of a majority of the voters upon the
| 7 | | proposition at a referendum held for such purpose or in | 8 | | accordance with
Section 17-2.11, 19-3.5, or 19-3.10. The board | 9 | | may initiate such referendum by resolution.
The board shall | 10 | | certify the resolution and proposition to the proper
election | 11 | | authority for submission in accordance with the general | 12 | | election law.
| 13 | | The questions of building one or more new buildings for | 14 | | school
purposes or office facilities, and issuing bonds for the | 15 | | purpose of
borrowing money to purchase one or more buildings or | 16 | | sites for such
buildings or office sites, to build one or more | 17 | | new buildings for school
purposes or office facilities or to | 18 | | make additions and improvements to
existing school buildings, | 19 | | may be combined into one or more propositions
on the ballot.
| 20 | | Before erecting, or purchasing or remodeling such a | 21 | | building the
board shall submit the plans and specifications | 22 | | respecting heating,
ventilating, lighting, seating, water | 23 | | supply, toilets and safety against
fire to the regional | 24 | | superintendent of schools having supervision and
control over |
| | | SB2170 Enrolled | - 22 - | LRB097 09013 PJG 49147 b |
|
| 1 | | the district, for approval in accordance with Section 2-3.12.
| 2 | | Notwithstanding any of the foregoing, no referendum shall | 3 | | be required
if the purchase, construction, or building of any
| 4 | | such
building is completed (1) occurs while the building is | 5 | | being
leased by the school district or (2) is paid with with | 6 | | the expenditure of (A) funds
derived from the sale or | 7 | | disposition of other buildings, land, or
structures of the | 8 | | school district or (B) funds received (i) as a
grant under the
| 9 | | School Construction Law , or (ii) as gifts or donations,
| 10 | | provided that no funds to purchase, construct, or build | 11 | | complete such building, other than lease
payments, are
derived | 12 | | from the district's bonded indebtedness or the tax levy of
the
| 13 | | district , or (iii) from the County School Facility Occupation | 14 | | Tax Law under Section 5-1006.7 of the Counties Code . | 15 | | Notwithstanding any of the foregoing, no referendum shall | 16 | | be required if the purchase, construction, or building of any | 17 | | such building is paid with funds received from the County | 18 | | School Facility Occupation Tax Law under Section 5-1006.7 of | 19 | | the Counties Code or from the proceeds of bonds or other debt | 20 | | obligations secured by revenues obtained from that Law.
| 21 | | (Source: P.A. 95-675, eff. 10-11-07; 96-517, eff. 8-14-09.)
| 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law. |
|