Votes shall be recorded as "yes" or "no". If a majority of all votes cast on
the proposition are in favor of the proposition, the county is authorized to
impose the tax.
(b) The county shall impose the retailers'
occupation tax upon all persons engaged in the business of selling tangible
personal property at retail in the county, at the
rate approved by referendum, on the
gross receipts from the sales made in the course of those businesses within
the county. This additional tax may not be imposed on tangible personal property taxed at the 1% rate under the Retailers' Occupation Tax Act. Beginning December 1, 2019, this tax is not imposed on sales of aviation fuel unless the tax revenue is expended for airport-related purposes. If the county does not have an airport-related purpose to which it dedicates aviation fuel tax revenue, then aviation fuel is excluded from the tax. The county must comply with the certification requirements for airport-related purposes under Section 2-22 of the Retailers' Occupation Tax Act. For purposes of this Section, "airport-related purposes" has the meaning ascribed in Section 6z-20.2 of the State Finance Act. This exclusion for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county. The tax imposed under this Section and all civil
penalties that may be assessed as an incident of the tax shall be collected
and enforced by the Department of Revenue. The Department has
full power to administer and enforce this Section; to collect all taxes
and penalties so collected in the manner provided in this Section; and to
determine
all rights to credit memoranda arising on account of the erroneous payment
of tax or penalty under this Section. In the administration of, and compliance
with,
this Section, the Department and persons who are subject to this Section
shall (i) have the same rights, remedies, privileges, immunities, powers and
duties, (ii) be subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms, and (iii) employ
the same modes of procedure as are prescribed in Sections 1,
1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect
to all provisions
other than the State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3
(except as to
the
disposition of taxes and penalties collected and provisions related to
quarter monthly payments, and except that the retailer's discount is not allowed for taxes paid on aviation fuel that are subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e,
5f, 5g,
5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of
the Retailers' Occupation Tax Act and Section 3-7 of the Uniform Penalty
and Interest Act, as fully as if those provisions were set forth in this
subsection.
Persons subject to any tax imposed under this subsection may reimburse
themselves for their seller's tax liability by separately stating
the tax as an additional charge, which charge may be stated in combination,
in a single amount, with State taxes that sellers are required to collect,
in accordance with bracket schedules prescribed by the
Department.
Whenever the Department determines that a refund should be made under this
subsection to a claimant instead of issuing a credit memorandum, the Department
shall notify the State Comptroller, who shall cause the warrant to be drawn
for the amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State Treasurer out
of the tax fund referenced under
paragraph (g) of this Section or the Local Government Aviation Trust Fund, as appropriate.
If a tax is imposed under this subsection (b), a tax shall also be
imposed at the same rate under subsections (c) and (d) of this Section.
For the purpose of determining whether a tax authorized under this Section
is applicable, a retail sale, by a producer of coal or another mineral mined
in Illinois, is a sale at retail at the place where the coal or other mineral
mined in Illinois is extracted from the earth. This paragraph does not
apply to coal or another mineral when it is delivered or shipped by the seller
to the purchaser at a point outside Illinois so that the sale is exempt
under the federal Constitution as a sale in interstate or foreign commerce.
Nothing in this Section shall be construed to authorize the county
to impose a tax upon the privilege of engaging in any
business that under the Constitution of the United States may not be made
the subject of taxation by this State.
(c) If a tax has been imposed under subsection (b), a
service occupation tax shall
also be imposed at the same rate upon all persons engaged, in the county, in
the business
of making sales of service, who, as an incident to making those sales of
service, transfer tangible personal property within the county
as an incident to a sale of service.
This additional tax may not be imposed on tangible personal property taxed at the 1% rate under the Service Occupation Tax Act. Beginning December 1, 2019, this tax is not imposed on sales of aviation fuel unless the tax revenue is expended for airport-related purposes. If the county does not have an airport-related purpose to which it dedicates aviation fuel tax revenue, then aviation fuel is excluded from the tax. The county must comply with the certification requirements for airport-related purposes under Section 2-22 of the Retailers' Occupation Tax Act. For purposes of this Section, "airport-related purposes" has the meaning ascribed in Section 6z-20.2 of the State Finance Act. This exclusion for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
The tax imposed under this subsection and all civil penalties that may be
assessed as an incident of the tax shall be collected and enforced by the
Department of Revenue. The Department has
full power to
administer and enforce this paragraph; to collect all taxes and penalties
due under this Section; to dispose of taxes and penalties so collected in the
manner
provided in this Section; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty under this
Section.
In the administration of, and compliance with this paragraph, the
Department and persons who are subject to this paragraph shall (i) have the
same rights, remedies, privileges, immunities, powers, and duties, (ii) be
subject to the same conditions, restrictions, limitations, penalties,
exclusions, exemptions, and definitions of terms, and (iii) employ the same
modes
of procedure as are prescribed in Sections 2 (except that the
reference to State in the definition of supplier maintaining a place of
business in this State shall mean the county), 2a, 2b, 3 through
3-55 (in respect to all provisions other than the State rate of
tax), 4 (except that the reference to the State shall be to the county),
5, 7, 8 (except that the jurisdiction to which the tax shall be a debt to
the extent indicated in that Section 8 shall be the county), 9 (except as
to the disposition of taxes and penalties collected, and except that
the returned merchandise credit for this tax may not be taken against any
State tax, and except that the retailer's discount is not allowed for taxes paid on aviation fuel that are subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 11, 12 (except the reference to Section 2b of the
Retailers' Occupation Tax Act), 13 (except that any reference to the State
shall mean the county), 15, 16,
17, 18, 19 and 20 of the Service Occupation Tax Act and Section 3-7 of
the Uniform Penalty and Interest Act, as fully as if those provisions were
set forth in this subsection.
Persons subject to any tax imposed under the authority granted in
this subsection may reimburse themselves for their serviceman's tax liability
by separately stating the tax as an additional charge, which
charge may be stated in combination, in a single amount, with State tax
that servicemen are authorized to collect under the Service Use Tax Act, in
accordance with bracket schedules prescribed by the Department.
Whenever the Department determines that a refund should be made under this
subsection to a claimant instead of issuing a credit memorandum, the Department
shall notify the State Comptroller, who shall cause the warrant to be drawn
for the amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State Treasurer out
of the tax fund referenced under
paragraph (g) of this Section or the Local Government Aviation Trust Fund, as appropriate.
Nothing in this paragraph shall be construed to authorize the county
to impose a tax upon the privilege of engaging in any business that under
the Constitution of the United States may not be made the subject of taxation
by the State.
(d) If a tax has been imposed under subsection (b), a
use tax shall
also be imposed at the same rate upon the privilege of using, in the
county, any item of
tangible personal property that is purchased outside the county at
retail from a retailer, and that is titled or registered at a location within
the county with an agency of
this State's government.
"Selling price" is
defined as in the Use Tax Act. The tax shall be collected from persons whose
Illinois address for titling or registration purposes is given as being in
the county. The tax shall be collected by the Department of Revenue
for
the county. The tax must be paid to the State,
or an exemption determination must be obtained from the Department of
Revenue, before the title or certificate of registration for the property
may be issued. The tax or proof of exemption may be transmitted to the
Department by way of the State agency with which, or the State officer with
whom, the tangible personal property must be titled or registered if the
Department and the State agency or State officer determine that this
procedure will expedite the processing of applications for title or
registration.
The Department has full power to administer and enforce this
paragraph; to collect all taxes, penalties, and interest due under this
Section; to
dispose of taxes, penalties, and interest so collected in the manner
provided in this Section; and to determine all rights to credit memoranda or
refunds arising on account of the erroneous payment of tax, penalty, or
interest under this Section. In the administration of, and compliance with,
this
subsection, the Department and persons who are subject to this paragraph
shall (i) have the same rights, remedies, privileges, immunities, powers,
and duties, (ii) be subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms,
and (iii) employ the same modes of procedure as are prescribed in Sections 2
(except the definition of "retailer maintaining a place of business in this
State"),
3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a,
4, 6, 7, 8 (except that the jurisdiction to which the tax shall be a debt to
the extent indicated in that Section 8 shall be the county), 9 (except
provisions relating to quarter
monthly payments), 10, 11, 12, 12a, 12b, 13, 14, 15, 19,
20, 21, and 22 of the Use Tax Act and Section 3-7 of the Uniform Penalty
and Interest Act, that are not inconsistent with this
paragraph, as fully as if those provisions were set forth in this subsection.
Whenever the Department determines that a refund should be made under this
subsection to a claimant instead of issuing a credit memorandum, the Department
shall notify the State Comptroller, who shall cause the order
to be drawn for the amount specified, and to the person named, in the
notification from the Department. The refund shall be paid by the State
Treasurer out of the tax fund referenced
under paragraph (g) of this Section.
(e) A certificate of registration issued by the State Department of
Revenue to a retailer under the Retailers' Occupation Tax Act or under the
Service Occupation Tax Act shall permit the registrant to engage in a
business that is taxed under the tax imposed under paragraphs (b), (c),
or (d) of this Section and no additional registration shall be required.
A certificate issued under the Use Tax Act or the Service Use Tax
Act shall be applicable with regard to any tax imposed under paragraph (c)
of this Section.
(f) The results of any election authorizing a proposition to impose a tax
under this Section or effecting a change in the rate of tax shall be certified
by the proper election authorities and filed with the Illinois Department on or
before the first day of October. In addition, an ordinance imposing,
discontinuing, or effecting a change in the rate of tax under this
Section shall be adopted and a certified copy of the ordinance filed with the
Department
on or before the first day of October. After proper receipt of the
certifications, the Department shall proceed to administer and enforce this
Section as of the first day of January next following the adoption and filing.
(g) Except as otherwise provided in paragraph (g-2), the Department of Revenue shall, upon collecting any taxes and penalties
as
provided in this Section, pay the taxes and penalties over to the State
Treasurer as
trustee for the county. The taxes and penalties shall be held in a trust
fund outside
the State Treasury. On or before the 25th day of each calendar month, the
Department of Revenue shall prepare and certify to the Comptroller of
the State of Illinois the amount to be paid to the county, which shall be
the balance in the fund, less any amount determined by the Department
to be necessary for the payment of refunds. Within 10 days after receipt by
the Comptroller of the certification of the amount to be paid to the
county, the Comptroller shall cause an order to be drawn for payment
for the amount in accordance with the directions contained in the
certification.
Amounts received from the tax imposed under this Section shall be used only for
the
economic development activities of the county and communities located within
the county.
(g-2) Taxes and penalties collected on aviation fuel sold on or after December 1, 2019, shall be immediately paid over by the Department to the State Treasurer, ex officio, as trustee, for deposit into the Local Government Aviation Trust Fund. The Department shall only pay moneys into the Local Government Aviation Trust Fund under this Section for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
(h) When certifying the amount of a monthly disbursement to the county
under this Section, the Department shall increase or decrease the amounts by an
amount necessary to offset any miscalculation of previous disbursements. The
offset amount shall be the amount erroneously disbursed within the previous 6
months from the time a miscalculation is discovered.
(i) This Section may be cited as the Rock Island County
Use and Occupation Tax Law.
(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
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