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90_HB0599 35 ILCS 105/3-5 from Ch. 120, par. 439.3-5 35 ILCS 120/2-5 from Ch. 120, par. 441-5 55 ILCS 5/5-1006 from Ch. 34, par. 5-1006 55 ILCS 5/5-1006.5 65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1 65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3 65 ILCS 5/8-11-1.6 Amends the Use Tax Act, the Retailers' Occupation Tax Act, the Counties Code, and the Illinois Municipal Code. Exempts qualified technological equipment as defined in Section 168(c)(3)(B)(iv) of the Internal Revenue Code that was purchased by a lessor who has elected to pay retailers' occupation tax based on the lessor's gross receipts from the lease of the equipment in this State to a lessee for his or her use and not for the purpose of sublease. Provides that, for purposes of determining the local governmental unit whose tax is applicable, a retail sale by a lessor is a sale at retail at the place where leased tangible personal property is located. Effective immediately. LRB9003379DNdv LRB9003379DNdv 1 AN ACT concerning occupation and use taxes. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Use Tax Act is amended by changing 5 Section 3-5 as follows: 6 (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5) 7 Sec. 3-5. Exemptions. Use of the following tangible 8 personal property is exempt from the tax imposed by this Act: 9 (1) Personal property purchased from a corporation, 10 society, association, foundation, institution, or 11 organization, other than a limited liability company, that is 12 organized and operated as a not-for-profit service enterprise 13 for the benefit of persons 65 years of age or older if the 14 personal property was not purchased by the enterprise for the 15 purpose of resale by the enterprise. 16 (2) Personal property purchased by a not-for-profit 17 Illinois county fair association for use in conducting, 18 operating, or promoting the county fair. 19 (3) Personal property purchased by a not-for-profit 20 music or dramatic arts organization that establishes, by 21 proof required by the Department by rule, that it has 22 received an exemption under Section 501(c)(3) of the Internal 23 Revenue Code and that is organized and operated for the 24 presentation of live public performances of musical or 25 theatrical works on a regular basis. 26 (4) Personal property purchased by a governmental body, 27 by a corporation, society, association, foundation, or 28 institution organized and operated exclusively for 29 charitable, religious, or educational purposes, or by a 30 not-for-profit corporation, society, association, foundation, 31 institution, or organization that has no compensated officers -2- LRB9003379DNdv 1 or employees and that is organized and operated primarily for 2 the recreation of persons 55 years of age or older. A limited 3 liability company may qualify for the exemption under this 4 paragraph only if the limited liability company is organized 5 and operated exclusively for educational purposes. On and 6 after July 1, 1987, however, no entity otherwise eligible for 7 this exemption shall make tax-free purchases unless it has an 8 active exemption identification number issued by the 9 Department. 10 (5) A passenger car that is a replacement vehicle to the 11 extent that the purchase price of the car is subject to the 12 Replacement Vehicle Tax. 13 (6) Graphic arts machinery and equipment, including 14 repair and replacement parts, both new and used, and 15 including that manufactured on special order, certified by 16 the purchaser to be used primarily for graphic arts 17 production, and including machinery and equipment purchased 18 for lease. 19 (7) Farm chemicals. 20 (8) Legal tender, currency, medallions, or gold or 21 silver coinage issued by the State of Illinois, the 22 government of the United States of America, or the government 23 of any foreign country, and bullion. 24 (9) Personal property purchased from a teacher-sponsored 25 student organization affiliated with an elementary or 26 secondary school located in Illinois. 27 (10) A motor vehicle of the first division, a motor 28 vehicle of the second division that is a self-contained motor 29 vehicle designed or permanently converted to provide living 30 quarters for recreational, camping, or travel use, with 31 direct walk through to the living quarters from the driver's 32 seat, or a motor vehicle of the second division that is of 33 the van configuration designed for the transportation of not 34 less than 7 nor more than 16 passengers, as defined in -3- LRB9003379DNdv 1 Section 1-146 of the Illinois Vehicle Code, that is used for 2 automobile renting, as defined in the Automobile Renting 3 Occupation and Use Tax Act. 4 (11) Farm machinery and equipment, both new and used, 5 including that manufactured on special order, certified by 6 the purchaser to be used primarily for production agriculture 7 or State or federal agricultural programs, including 8 individual replacement parts for the machinery and equipment, 9 and including machinery and equipment purchased for lease, 10 but excluding motor vehicles required to be registered under 11 the Illinois Vehicle Code. 12 (12) Fuel and petroleum products sold to or used by an 13 air common carrier, certified by the carrier to be used for 14 consumption, shipment, or storage in the conduct of its 15 business as an air common carrier, for a flight destined for 16 or returning from a location or locations outside the United 17 States without regard to previous or subsequent domestic 18 stopovers. 19 (13) Proceeds of mandatory service charges separately 20 stated on customers' bills for the purchase and consumption 21 of food and beverages purchased at retail from a retailer, to 22 the extent that the proceeds of the service charge are in 23 fact turned over as tips or as a substitute for tips to the 24 employees who participate directly in preparing, serving, 25 hosting or cleaning up the food or beverage function with 26 respect to which the service charge is imposed. 27 (14) Oil field exploration, drilling, and production 28 equipment, including (i) rigs and parts of rigs, rotary rigs, 29 cable tool rigs, and workover rigs, (ii) pipe and tubular 30 goods, including casing and drill strings, (iii) pumps and 31 pump-jack units, (iv) storage tanks and flow lines, (v) any 32 individual replacement part for oil field exploration, 33 drilling, and production equipment, and (vi) machinery and 34 equipment purchased for lease; but excluding motor vehicles -4- LRB9003379DNdv 1 required to be registered under the Illinois Vehicle Code. 2 (15) Photoprocessing machinery and equipment, including 3 repair and replacement parts, both new and used, including 4 that manufactured on special order, certified by the 5 purchaser to be used primarily for photoprocessing, and 6 including photoprocessing machinery and equipment purchased 7 for lease. 8 (16) Coal exploration, mining, offhighway hauling, 9 processing, maintenance, and reclamation equipment, including 10 replacement parts and equipment, and including equipment 11 purchased for lease, but excluding motor vehicles required to 12 be registered under the Illinois Vehicle Code. 13 (17) Distillation machinery and equipment, sold as a 14 unit or kit, assembled or installed by the retailer, 15 certified by the user to be used only for the production of 16 ethyl alcohol that will be used for consumption as motor fuel 17 or as a component of motor fuel for the personal use of the 18 user, and not subject to sale or resale. 19 (18) Manufacturing and assembling machinery and 20 equipment used primarily in the process of manufacturing or 21 assembling tangible personal property for wholesale or retail 22 sale or lease, whether that sale or lease is made directly by 23 the manufacturer or by some other person, whether the 24 materials used in the process are owned by the manufacturer 25 or some other person, or whether that sale or lease is made 26 apart from or as an incident to the seller's engaging in the 27 service occupation of producing machines, tools, dies, jigs, 28 patterns, gauges, or other similar items of no commercial 29 value on special order for a particular purchaser. 30 (19) Personal property delivered to a purchaser or 31 purchaser's donee inside Illinois when the purchase order for 32 that personal property was received by a florist located 33 outside Illinois who has a florist located inside Illinois 34 deliver the personal property. -5- LRB9003379DNdv 1 (20) Semen used for artificial insemination of livestock 2 for direct agricultural production. 3 (21) Horses, or interests in horses, registered with and 4 meeting the requirements of any of the Arabian Horse Club 5 Registry of America, Appaloosa Horse Club, American Quarter 6 Horse Association, United States Trotting Association, or 7 Jockey Club, as appropriate, used for purposes of breeding or 8 racing for prizes. 9 (22) Computers and communications equipment utilized for 10 any hospital purpose and equipment used in the diagnosis, 11 analysis, or treatment of hospital patients purchased by a 12 lessor who leases the equipment, under a lease of one year or 13 longer executed or in effect at the time the lessor would 14 otherwise be subject to the tax imposed by this Act, to a 15 hospital that has been issued an active tax exemption 16 identification number by the Department under Section 1g of 17 the Retailers' Occupation Tax Act. If the equipment is 18 leased in a manner that does not qualify for this exemption 19 or is used in any other non-exempt manner, the lessor shall 20 be liable for the tax imposed under this Act or the Service 21 Use Tax Act, as the case may be, based on the fair market 22 value of the property at the time the non-qualifying use 23 occurs. No lessor shall collect or attempt to collect an 24 amount (however designated) that purports to reimburse that 25 lessor for the tax imposed by this Act or the Service Use Tax 26 Act, as the case may be, if the tax has not been paid by the 27 lessor. If a lessor improperly collects any such amount from 28 the lessee, the lessee shall have a legal right to claim a 29 refund of that amount from the lessor. If, however, that 30 amount is not refunded to the lessee for any reason, the 31 lessor is liable to pay that amount to the Department. 32 (23) Personal property purchased by a lessor who leases 33 the property, under a lease of one year or longer executed 34 or in effect at the time the lessor would otherwise be -6- LRB9003379DNdv 1 subject to the tax imposed by this Act, to a governmental 2 body that has been issued an active sales tax exemption 3 identification number by the Department under Section 1g of 4 the Retailers' Occupation Tax Act. If the property is leased 5 in a manner that does not qualify for this exemption or used 6 in any other non-exempt manner, the lessor shall be liable 7 for the tax imposed under this Act or the Service Use Tax 8 Act, as the case may be, based on the fair market value of 9 the property at the time the non-qualifying use occurs. No 10 lessor shall collect or attempt to collect an amount (however 11 designated) that purports to reimburse that lessor for the 12 tax imposed by this Act or the Service Use Tax Act, as the 13 case may be, if the tax has not been paid by the lessor. If 14 a lessor improperly collects any such amount from the lessee, 15 the lessee shall have a legal right to claim a refund of that 16 amount from the lessor. If, however, that amount is not 17 refunded to the lessee for any reason, the lessor is liable 18 to pay that amount to the Department. 19 (24) Beginning with taxable years ending on or after 20 December 31, 1995 and ending with taxable years ending on or 21 before December 31, 2004, personal property that is donated 22 for disaster relief to be used in a State or federally 23 declared disaster area in Illinois or bordering Illinois by a 24 manufacturer or retailer that is registered in this State to 25 a corporation, society, association, foundation, or 26 institution that has been issued a sales tax exemption 27 identification number by the Department that assists victims 28 of the disaster who reside within the declared disaster area. 29 (25) Beginning with taxable years ending on or after 30 December 31, 1995 and ending with taxable years ending on or 31 before December 31, 2004, personal property that is used in 32 the performance of infrastructure repairs in this State, 33 including but not limited to municipal roads and streets, 34 access roads, bridges, sidewalks, waste disposal systems, -7- LRB9003379DNdv 1 water and sewer line extensions, water distribution and 2 purification facilities, storm water drainage and retention 3 facilities, and sewage treatment facilities, resulting from a 4 State or federally declared disaster in Illinois or bordering 5 Illinois when such repairs are initiated on facilities 6 located in the declared disaster area within 6 months after 7 the disaster. 8 (26) Qualified technological equipment as defined in 9 Section 168(c)(3)(B)(iv) of the Internal Revenue Code 10 purchased by a lessor who has elected, under Section 2-5(32) 11 of the Retailers' Occupation Tax Act, to pay retailers' 12 occupation tax based on the lessor's gross receipts from the 13 lease of the equipment in this State to a lessee for his or 14 her use and not for the purpose of sublease. This provision 15 shall not be construed to impose any liability upon a lessee. 16 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94; 17 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff. 18 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626, 19 eff. 8-9-96; revised 8-21-96.) 20 Section 10. The Retailers' Occupation Tax Act is amended 21 by changing Section 2-5 as follows: 22 (35 ILCS 120/2-5) (from Ch. 120, par. 441-5) 23 Sec. 2-5. Exemptions. Gross receipts from proceeds from 24 the sale of the following tangible personal property are 25 exempt from the tax imposed by this Act: 26 (1) Farm chemicals. 27 (2) Farm machinery and equipment, both new and used, 28 including that manufactured on special order, certified by 29 the purchaser to be used primarily for production agriculture 30 or State or federal agricultural programs, including 31 individual replacement parts for the machinery and equipment, 32 and including machinery and equipment purchased for lease, -8- LRB9003379DNdv 1 but excluding motor vehicles required to be registered under 2 the Illinois Vehicle Code. 3 (3) Distillation machinery and equipment, sold as a unit 4 or kit, assembled or installed by the retailer, certified by 5 the user to be used only for the production of ethyl alcohol 6 that will be used for consumption as motor fuel or as a 7 component of motor fuel for the personal use of the user, and 8 not subject to sale or resale. 9 (4) Graphic arts machinery and equipment, including 10 repair and replacement parts, both new and used, and 11 including that manufactured on special order or purchased for 12 lease, certified by the purchaser to be used primarily for 13 graphic arts production. 14 (5) A motor vehicle of the first division, a motor 15 vehicle of the second division that is a self-contained motor 16 vehicle designed or permanently converted to provide living 17 quarters for recreational, camping, or travel use, with 18 direct walk through access to the living quarters from the 19 driver's seat, or a motor vehicle of the second division that 20 is of the van configuration designed for the transportation 21 of not less than 7 nor more than 16 passengers, as defined in 22 Section 1-146 of the Illinois Vehicle Code, that is used for 23 automobile renting, as defined in the Automobile Renting 24 Occupation and Use Tax Act. 25 (6) Personal property sold by a teacher-sponsored 26 student organization affiliated with an elementary or 27 secondary school located in Illinois. 28 (7) Proceeds of that portion of the selling price of a 29 passenger car the sale of which is subject to the Replacement 30 Vehicle Tax. 31 (8) Personal property sold to an Illinois county fair 32 association for use in conducting, operating, or promoting 33 the county fair. 34 (9) Personal property sold to a not-for-profit music or -9- LRB9003379DNdv 1 dramatic arts organization that establishes, by proof 2 required by the Department by rule, that it has received an 3 exemption under Section 501(c) (3) of the Internal Revenue 4 Code and that is organized and operated for the presentation 5 of live public performances of musical or theatrical works on 6 a regular basis. 7 (10) Personal property sold by a corporation, society, 8 association, foundation, institution, or organization, other 9 than a limited liability company, that is organized and 10 operated as a not-for-profit service enterprise for the 11 benefit of persons 65 years of age or older if the personal 12 property was not purchased by the enterprise for the purpose 13 of resale by the enterprise. 14 (11) Personal property sold to a governmental body, to a 15 corporation, society, association, foundation, or institution 16 organized and operated exclusively for charitable, religious, 17 or educational purposes, or to a not-for-profit corporation, 18 society, association, foundation, institution, or 19 organization that has no compensated officers or employees 20 and that is organized and operated primarily for the 21 recreation of persons 55 years of age or older. A limited 22 liability company may qualify for the exemption under this 23 paragraph only if the limited liability company is organized 24 and operated exclusively for educational purposes. On and 25 after July 1, 1987, however, no entity otherwise eligible for 26 this exemption shall make tax-free purchases unless it has an 27 active identification number issued by the Department. 28 (12) Personal property sold to interstate carriers for 29 hire for use as rolling stock moving in interstate commerce 30 or to lessors under leases of one year or longer executed or 31 in effect at the time of purchase by interstate carriers for 32 hire for use as rolling stock moving in interstate commerce 33 and equipment operated by a telecommunications provider, 34 licensed as a common carrier by the Federal Communications -10- LRB9003379DNdv 1 Commission, which is permanently installed in or affixed to 2 aircraft moving in interstate commerce. 3 (13) Proceeds from sales to owners, lessors, or shippers 4 of tangible personal property that is utilized by interstate 5 carriers for hire for use as rolling stock moving in 6 interstate commerce and equipment operated by a 7 telecommunications provider, licensed as a common carrier by 8 the Federal Communications Commission, which is permanently 9 installed in or affixed to aircraft moving in interstate 10 commerce. 11 (14) Machinery and equipment that will be used by the 12 purchaser, or a lessee of the purchaser, primarily in the 13 process of manufacturing or assembling tangible personal 14 property for wholesale or retail sale or lease, whether the 15 sale or lease is made directly by the manufacturer or by some 16 other person, whether the materials used in the process are 17 owned by the manufacturer or some other person, or whether 18 the sale or lease is made apart from or as an incident to the 19 seller's engaging in the service occupation of producing 20 machines, tools, dies, jigs, patterns, gauges, or other 21 similar items of no commercial value on special order for a 22 particular purchaser. 23 (15) Proceeds of mandatory service charges separately 24 stated on customers' bills for purchase and consumption of 25 food and beverages, to the extent that the proceeds of the 26 service charge are in fact turned over as tips or as a 27 substitute for tips to the employees who participate directly 28 in preparing, serving, hosting or cleaning up the food or 29 beverage function with respect to which the service charge is 30 imposed. 31 (16) Petroleum products sold to a purchaser if the 32 seller is prohibited by federal law from charging tax to the 33 purchaser. 34 (17) Tangible personal property sold to a common carrier -11- LRB9003379DNdv 1 by rail that receives the physical possession of the property 2 in Illinois and that transports the property, or shares with 3 another common carrier in the transportation of the property, 4 out of Illinois on a standard uniform bill of lading showing 5 the seller of the property as the shipper or consignor of the 6 property to a destination outside Illinois, for use outside 7 Illinois. 8 (18) Legal tender, currency, medallions, or gold or 9 silver coinage issued by the State of Illinois, the 10 government of the United States of America, or the government 11 of any foreign country, and bullion. 12 (19) Oil field exploration, drilling, and production 13 equipment, including (i) rigs and parts of rigs, rotary rigs, 14 cable tool rigs, and workover rigs, (ii) pipe and tubular 15 goods, including casing and drill strings, (iii) pumps and 16 pump-jack units, (iv) storage tanks and flow lines, (v) any 17 individual replacement part for oil field exploration, 18 drilling, and production equipment, and (vi) machinery and 19 equipment purchased for lease; but excluding motor vehicles 20 required to be registered under the Illinois Vehicle Code. 21 (20) Photoprocessing machinery and equipment, including 22 repair and replacement parts, both new and used, including 23 that manufactured on special order, certified by the 24 purchaser to be used primarily for photoprocessing, and 25 including photoprocessing machinery and equipment purchased 26 for lease. 27 (21) Coal exploration, mining, offhighway hauling, 28 processing, maintenance, and reclamation equipment, including 29 replacement parts and equipment, and including equipment 30 purchased for lease, but excluding motor vehicles required to 31 be registered under the Illinois Vehicle Code. 32 (22) Fuel and petroleum products sold to or used by an 33 air carrier, certified by the carrier to be used for 34 consumption, shipment, or storage in the conduct of its -12- LRB9003379DNdv 1 business as an air common carrier, for a flight destined for 2 or returning from a location or locations outside the United 3 States without regard to previous or subsequent domestic 4 stopovers. 5 (23) A transaction in which the purchase order is 6 received by a florist who is located outside Illinois, but 7 who has a florist located in Illinois deliver the property to 8 the purchaser or the purchaser's donee in Illinois. 9 (24) Fuel consumed or used in the operation of ships, 10 barges, or vessels that are used primarily in or for the 11 transportation of property or the conveyance of persons for 12 hire on rivers bordering on this State if the fuel is 13 delivered by the seller to the purchaser's barge, ship, or 14 vessel while it is afloat upon that bordering river. 15 (25) A motor vehicle sold in this State to a nonresident 16 even though the motor vehicle is delivered to the nonresident 17 in this State, if the motor vehicle is not to be titled in 18 this State, and if a driveaway decal permit is issued to the 19 motor vehicle as provided in Section 3-603 of the Illinois 20 Vehicle Code or if the nonresident purchaser has vehicle 21 registration plates to transfer to the motor vehicle upon 22 returning to his or her home state. The issuance of the 23 driveaway decal permit or having the out-of-state 24 registration plates to be transferred is prima facie evidence 25 that the motor vehicle will not be titled in this State. 26 (26) Semen used for artificial insemination of livestock 27 for direct agricultural production. 28 (27) Horses, or interests in horses, registered with and 29 meeting the requirements of any of the Arabian Horse Club 30 Registry of America, Appaloosa Horse Club, American Quarter 31 Horse Association, United States Trotting Association, or 32 Jockey Club, as appropriate, used for purposes of breeding or 33 racing for prizes. 34 (28) Computers and communications equipment utilized -13- LRB9003379DNdv 1 for any hospital purpose and equipment used in the diagnosis, 2 analysis, or treatment of hospital patients sold to a lessor 3 who leases the equipment, under a lease of one year or longer 4 executed or in effect at the time of the purchase, to a 5 hospital that has been issued an active tax exemption 6 identification number by the Department under Section 1g of 7 this Act. 8 (29) Personal property sold to a lessor who leases the 9 property, under a lease of one year or longer executed or in 10 effect at the time of the purchase, to a governmental body 11 that has been issued an active tax exemption identification 12 number by the Department under Section 1g of this Act. 13 (30) Beginning with taxable years ending on or after 14 December 31, 1995 and ending with taxable years ending on or 15 before December 31, 2004, personal property that is donated 16 for disaster relief to be used in a State or federally 17 declared disaster area in Illinois or bordering Illinois by a 18 manufacturer or retailer that is registered in this State to 19 a corporation, society, association, foundation, or 20 institution that has been issued a sales tax exemption 21 identification number by the Department that assists victims 22 of the disaster who reside within the declared disaster area. 23 (31) Beginning with taxable years ending on or after 24 December 31, 1995 and ending with taxable years ending on or 25 before December 31, 2004, personal property that is used in 26 the performance of infrastructure repairs in this State, 27 including but not limited to municipal roads and streets, 28 access roads, bridges, sidewalks, waste disposal systems, 29 water and sewer line extensions, water distribution and 30 purification facilities, storm water drainage and retention 31 facilities, and sewage treatment facilities, resulting from a 32 State or federally declared disaster in Illinois or bordering 33 Illinois when such repairs are initiated on facilities 34 located in the declared disaster area within 6 months after -14- LRB9003379DNdv 1 the disaster. 2 (32) Qualified technological equipment as defined in 3 Section 168(c)(3)(B)(iv) of the Internal Revenue Code sold to 4 a lessor who has elected to pay the tax imposed under this 5 Act based on the lessor's gross receipts from the lease of 6 the equipment in this State to a lessee for his or her use 7 and not for the purpose of sublease. This election may be 8 made by the issuance of an exemption certificate to the 9 seller of the equipment indicating the lessor's registration 10 number under this Act and certifying that the lessor elects 11 to pay retailers' occupation tax measured by the gross 12 receipts from the lease of that equipment. If this election 13 is made, the gross receipts of each lease payment will be 14 deemed to be receipts from sales at retail for purposes of 15 this Act. 16 (Source: P.A. 88-337; 88-480; 88-547; 88-670, eff. 12-2-94; 17 89-16, eff. 5-30-95; 89-115, eff. 1-1-96; 89-349, eff. 18 8-17-95; 89-495, eff. 6-24-96; 89-496, eff. 6-25-96; 89-626, 19 eff. 8-9-96; revised 8-21-96.) 20 Section 15. The Counties Code is amended by changing 21 Sections 5-1006 and 5-1006.5 as follows: 22 (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006) 23 Sec. 5-1006. Home Rule County Retailers' Occupation Tax. 24 Any county that is a home rule unit may impose a tax upon all 25 persons engaged in the business of selling tangible personal 26 property, other than an item of tangible personal property 27 titled or registered with an agency of this State's 28 government, at retail in the county on the gross receipts 29 from such sales made in the course of their business. If 30 imposed, this tax shall only be imposed in 1/4% increments. 31 On and after September 1, 1991, this additional tax may not 32 be imposed on the sales of food for human consumption which -15- LRB9003379DNdv 1 is to be consumed off the premises where it is sold (other 2 than alcoholic beverages, soft drinks and food which has been 3 prepared for immediate consumption) and prescription and 4 nonprescription medicines, drugs, medical appliances and 5 insulin, urine testing materials, syringes and needles used 6 by diabetics. The tax imposed by a home rule county pursuant 7 to this Section and all civil penalties that may be assessed 8 as an incident thereof shall be collected and enforced by the 9 State Department of Revenue. The certificate of registration 10 that is issued by the Department to a retailer under the 11 Retailers' Occupation Tax Act shall permit the retailer to 12 engage in a business that is taxable under any ordinance or 13 resolution enacted pursuant to this Section without 14 registering separately with the Department under such 15 ordinance or resolution or under this Section. The 16 Department shall have full power to administer and enforce 17 this Section; to collect all taxes and penalties due 18 hereunder; to dispose of taxes and penalties so collected in 19 the manner hereinafter provided; and to determine all rights 20 to credit memoranda arising on account of the erroneous 21 payment of tax or penalty hereunder. In the administration 22 of, and compliance with, this Section, the Department and 23 persons who are subject to this Section shall have the same 24 rights, remedies, privileges, immunities, powers and duties, 25 and be subject to the same conditions, restrictions, 26 limitations, penalties and definitions of terms, and employ 27 the same modes of procedure, as are prescribed in Sections 1, 28 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to 29 all provisions therein other than the State rate of tax), 4, 30 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 31 6c, 7, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation 32 Tax Act and Section 3-7 of the Uniform Penalty and Interest 33 Act, as fully as if those provisions were set forth herein. 34 No tax may be imposed by a home rule county pursuant to -16- LRB9003379DNdv 1 this Section unless the county also imposes a tax at the same 2 rate pursuant to Section 5-1007. 3 Persons subject to any tax imposed pursuant to the 4 authority granted in this Section may reimburse themselves 5 for their seller's tax liability hereunder by separately 6 stating such tax as an additional charge, which charge may be 7 stated in combination, in a single amount, with State tax 8 which sellers are required to collect under the Use Tax Act, 9 pursuant to such bracket schedules as the Department may 10 prescribe. 11 Whenever the Department determines that a refund should 12 be made under this Section to a claimant instead of issuing a 13 credit memorandum, the Department shall notify the State 14 Comptroller, who shall cause the order to be drawn for the 15 amount specified and to the person named in the notification 16 from the Department. The refund shall be paid by the State 17 Treasurer out of the home rule county retailers' occupation 18 tax fund. 19 The Department shall forthwith pay over to the State 20 Treasurer, ex officio, as trustee, all taxes and penalties 21 collected hereunder. On or before the 25th day of each 22 calendar month, the Department shall prepare and certify to 23 the Comptroller the disbursement of stated sums of money to 24 named counties, the counties to be those from which retailers 25 have paid taxes or penalties hereunder to the Department 26 during the second preceding calendar month. The amount to be 27 paid to each county shall be the amount (not including credit 28 memoranda) collected hereunder during the second preceding 29 calendar month by the Department plus an amount the 30 Department determines is necessary to offset any amounts that 31 were erroneously paid to a different taxing body, and not 32 including an amount equal to the amount of refunds made 33 during the second preceding calendar month by the Department 34 on behalf of such county, and not including any amount which -17- LRB9003379DNdv 1 the Department determines is necessary to offset any amounts 2 which were payable to a different taxing body but were 3 erroneously paid to the county. Within 10 days after receipt, 4 by the Comptroller, of the disbursement certification to the 5 counties provided for in this Section to be given to the 6 Comptroller by the Department, the Comptroller shall cause 7 the orders to be drawn for the respective amounts in 8 accordance with the directions contained in the 9 certification. 10 In addition to the disbursement required by the preceding 11 paragraph, an allocation shall be made in March of each year 12 to each county that received more than $500,000 in 13 disbursements under the preceding paragraph in the preceding 14 calendar year. The allocation shall be in an amount equal to 15 the average monthly distribution made to each such county 16 under the preceding paragraph during the preceding calendar 17 year (excluding the 2 months of highest receipts). The 18 distribution made in March of each year subsequent to the 19 year in which an allocation was made pursuant to this 20 paragraph and the preceding paragraph shall be reduced by the 21 amount allocated and disbursed under this paragraph in the 22 preceding calendar year. The Department shall prepare and 23 certify to the Comptroller for disbursement the allocations 24 made in accordance with this paragraph. 25 For the purpose of determining the local governmental 26 unit whose tax is applicable, a retail sale by a producer of 27 coal or other mineral mined in Illinois is a sale at retail 28 at the place where the coal or other mineral mined in 29 Illinois is extracted from the earth. This paragraph does 30 not apply to coal or other mineral when it is delivered or 31 shipped by the seller to the purchaser at a point outside 32 Illinois so that the sale is exempt under the United States 33 Constitution as a sale in interstate or foreign commerce. For 34 purposes of determining the local governmental unit whose tax -18- LRB9003379DNdv 1 is applicable under Section 2-5(32) of the Retailers' 2 Occupation Tax Act, a retail sale by a lessor is a sale at 3 retail at the place where leased tangible personal property 4 is located. 5 Nothing in this Section shall be construed to authorize a 6 county to impose a tax upon the privilege of engaging in any 7 business which under the Constitution of the United States 8 may not be made the subject of taxation by this State. 9 An ordinance or resolution imposing or discontinuing a 10 tax hereunder or effecting a change in the rate thereof shall 11 be adopted and a certified copy thereof filed with the 12 Department on or before the first day of June, whereupon the 13 Department shall proceed to administer and enforce this 14 Section as of the first day of September next following such 15 adoption and filing. Beginning January 1, 1992, an ordinance 16 or resolution imposing or discontinuing the tax hereunder or 17 effecting a change in the rate thereof shall be adopted and a 18 certified copy thereof filed with the Department on or before 19 the first day of July, whereupon the Department shall proceed 20 to administer and enforce this Section as of the first day of 21 October next following such adoption and filing. Beginning 22 January 1, 1993, an ordinance or resolution imposing or 23 discontinuing the tax hereunder or effecting a change in the 24 rate thereof shall be adopted and a certified copy thereof 25 filed with the Department on or before the first day of 26 October, whereupon the Department shall proceed to administer 27 and enforce this Section as of the first day of January next 28 following such adoption and filing. 29 When certifying the amount of a monthly disbursement to a 30 county under this Section, the Department shall increase or 31 decrease such amount by an amount necessary to offset any 32 misallocation of previous disbursements. The offset amount 33 shall be the amount erroneously disbursed within the previous 34 6 months from the time a misallocation is discovered. -19- LRB9003379DNdv 1 This Section shall be known and may be cited as the "Home 2 Rule County Retailers' Occupation Tax Law". 3 (Source: P.A. 86-962; 86-1028; 86-1475; 87-205; 87-895.) 4 (55 ILCS 5/5-1006.5) 5 Sec. 5-1006.5. Special County Retailers' Occupation Tax 6 For Public Safety. 7 (a) The county board of any county with a population in 8 excess of 180,000 inhabitants, as determined by the most 9 recent decennial census, may impose a tax upon all persons 10 engaged in the business of selling tangible personal 11 property, other than personal property titled or registered 12 with an agency of this State's government, at retail in the 13 county on the gross receipts from the sales made in the 14 course of business to provide revenue to be used exclusively 15 for public safety purposes in that county, if a proposition 16 for the tax has been submitted to the electors of that county 17 and approved by a majority of those voting on the question. 18 If imposed, this tax shall be imposed only in one-quarter 19 percent increments. By resolution, the county board may order 20 the proposition to be submitted at any election. The county 21 clerk shall certify the question to the proper election 22 authority, who shall submit the proposition at an election in 23 accordance with the general election law. 24 The proposition shall be in substantially the following 25 form: 26 "Shall (name of county) be authorized to impose a 27 public safety tax at the rate of .... upon all persons 28 engaged in the business of selling tangible personal 29 property at retail in the county on gross receipts from 30 the sales made in the course of their business to be used 31 for crime prevention, detention, and other public safety 32 purposes?" 33 Votes shall be recorded as Yes or No. If a majority of the -20- LRB9003379DNdv 1 electors voting on the proposition vote in favor of it, the 2 county may impose the tax. 3 This additional tax may not be imposed on the sales of 4 food for human consumption that is to be consumed off the 5 premises where it is sold (other than alcoholic beverages, 6 soft drinks, and food which has been prepared for immediate 7 consumption) and prescription and non-prescription medicines, 8 drugs, medical appliances and insulin, urine testing 9 materials, syringes, and needles used by diabetics. The tax 10 imposed by a county under this Section and all civil 11 penalties that may be assessed as an incident of the tax 12 shall be collected and enforced by the Illinois Department of 13 Revenue. The certificate of registration that is issued by 14 the Department to a retailer under the Retailers' Occupation 15 Tax Act shall permit the retailer to engage in a business 16 that is taxable without registering separately with the 17 Department under an ordinance or resolution under this 18 Section. The Department has full power to administer and 19 enforce this Section, to collect all taxes and penalties due 20 under this Section, to dispose of taxes and penalties so 21 collected in the manner provided in this Section, and to 22 determine all rights to credit memoranda arising on account 23 of the erroneous payment of a tax or penalty under this 24 Section. In the administration of and compliance with this 25 Section, the Department and persons who are subject to this 26 Section shall (i) have the same rights, remedies, privileges, 27 immunities, powers, and duties, (ii) be subject to the same 28 conditions, restrictions, limitations, penalties, and 29 definitions of terms, and (iii) employ the same modes of 30 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 31 1f, 1i, 1j, 2, 2-10 (in respect to all provisions contained 32 in those Sections other than the State rate of tax), 2-40, 33 2a, 2b, 2c, 3 (except provisions relating to transaction 34 returns and quarter monthly payments), 4, 5, 5a, 5b, 5c, 5d, -21- LRB9003379DNdv 1 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 2 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act and 3 Section 3-7 of the Uniform Penalty and Interest Act as if 4 those provisions were set forth in this Section. 5 Persons subject to any tax imposed under the authority 6 granted in this Section may reimburse themselves for their 7 sellers' tax liability by separately stating the tax as an 8 additional charge, which charge may be stated in combination, 9 in a single amount, with State tax which sellers are required 10 to collect under the Use Tax Act, pursuant to such bracketed 11 schedules as the Department may prescribe. 12 Whenever the Department determines that a refund should 13 be made under this Section to a claimant instead of issuing a 14 credit memorandum, the Department shall notify the State 15 Comptroller, who shall cause the order to be drawn for the 16 amount specified and to the person named in the notification 17 from the Department. The refund shall be paid by the State 18 Treasurer out of the County Public Safety Retailers' 19 Occupation Tax Fund. 20 (b) If a tax has been imposed under subsection (a), a 21 service occupation tax shall also be imposed at the same rate 22 upon all persons engaged, in the county, in the business of 23 making sales of service, who, as an incident to making those 24 sales of service, transfer tangible personal property within 25 the county as an incident to a sale of service. This tax may 26 not be imposed on sales of food for human consumption that is 27 to be consumed off the premises where it is sold (other than 28 alcoholic beverages, soft drinks, and food prepared for 29 immediate consumption) and prescription and non-prescription 30 medicines, drugs, medical appliances and insulin, urine 31 testing materials, syringes, and needles used by diabetics. 32 The tax imposed under this subsection and all civil penalties 33 that may be assessed as an incident thereof shall be 34 collected and enforced by the Department of Revenue. The -22- LRB9003379DNdv 1 Department has full power to administer and enforce this 2 subsection; to collect all taxes and penalties due hereunder; 3 to dispose of taxes and penalties so collected in the manner 4 hereinafter provided; and to determine all rights to credit 5 memoranda arising on account of the erroneous payment of tax 6 or penalty hereunder. In the administration of, and 7 compliance with this subsection, the Department and persons 8 who are subject to this paragraph shall (i) have the same 9 rights, remedies, privileges, immunities, powers, and duties, 10 (ii) be subject to the same conditions, restrictions, 11 limitations, penalties, exclusions, exemptions, and 12 definitions of terms, and (iii) employ the same modes of 13 procedure as are prescribed in Sections 1a-1, 2 (except that 14 the reference to State in the definition of supplier 15 maintaining a place of business in this State shall mean the 16 county), 2a, 3 through 3-50 (in respect to all provisions 17 therein other than the State rate of tax), 4 (except that the 18 reference to the State shall be to the county), 5, 7, 8 19 (except that the jurisdiction to which the tax shall be a 20 debt to the extent indicated in that Section 8 shall be the 21 county), 9 (except as to the disposition of taxes and 22 penalties collected, and except that the returned merchandise 23 credit for this tax may not be taken against any State tax), 24 10, 11, 12 (except the reference therein to Section 2b of the 25 Retailers' Occupation Tax Act), 13 (except that any reference 26 to the State shall mean the county), the first paragraph of 27 Section 15, 16, 17, 18, 19 and 20 of the Service Occupation 28 Tax Act and Section 3-7 of the Uniform Penalty and Interest 29 Act, as fully as if those provisions were set forth herein. 30 Persons subject to any tax imposed under the authority 31 granted in this subsection may reimburse themselves for their 32 serviceman's tax liability by separately stating the tax as 33 an additional charge, which charge may be stated in 34 combination, in a single amount, with State tax that -23- LRB9003379DNdv 1 servicemen are authorized to collect under the Service Use 2 Tax Act, in accordance with such bracket schedules as the 3 Department may prescribe. 4 Whenever the Department determines that a refund should 5 be made under this subsection to a claimant instead of 6 issuing a credit memorandum, the Department shall notify the 7 State Comptroller, who shall cause the warrant to be drawn 8 for the amount specified, and to the person named, in the 9 notification from the Department. The refund shall be paid 10 by the State Treasurer out of the County Public Safety 11 Retailers' Occupation Fund. 12 Nothing in this subsection shall be construed to 13 authorize the county to impose a tax upon the privilege of 14 engaging in any business which under the Constitution of the 15 United States may not be made the subject of taxation by the 16 State. 17 (c) The Department shall immediately pay over to the 18 State Treasurer, Ex Officio, as trustee, all taxes and 19 penalties collected under this Section to be deposited into 20 the County Public Safety Retailers' Occupation Tax Fund, 21 which is created in the State treasury. On or before the 22 25th day of each calendar month, the Department shall prepare 23 and certify to the Comptroller the disbursement of stated 24 sums of money to the counties from which retailers have paid 25 taxes or penalties to the Department during the second 26 preceding calendar month. The amount to be paid to each 27 county shall be the amount (not including credit memoranda) 28 collected under this Section during the second preceding 29 calendar month by the Department plus an amount the 30 Department determines is necessary to offset any amounts that 31 were erroneously paid to a different taxing body, and not 32 including (i) an amount equal to the amount of refunds made 33 during the second preceding calendar month by the Department 34 on behalf of the county and (ii) any amount that the -24- LRB9003379DNdv 1 Department determines is necessary to offset any amounts that 2 were payable to a different taxing body but were erroneously 3 paid to the county. Within 10 days after receipt by the 4 Comptroller of the disbursement certification to the counties 5 provided for in this Section to be given to the Comptroller 6 by the Department, the Comptroller shall cause the orders to 7 be drawn for the respective amounts in accordance with 8 directions contained in the certification. 9 In addition to the disbursement required by the preceding 10 paragraph, an allocation shall be made in March of each year 11 to each county that received more than $500,000 in 12 disbursements under the preceding paragraph in the preceding 13 calendar year. The allocation shall be in an amount equal to 14 the average monthly distribution made to each such county 15 under the preceding paragraph during the preceding calendar 16 year (excluding the 2 months of highest receipts). The 17 distribution made in March of each year subsequent to the 18 year in which an allocation was made pursuant to this 19 paragraph and the preceding paragraph shall be reduced by the 20 amount allocated and disbursed under this paragraph in the 21 preceding calendar year. The Department shall prepare and 22 certify to the Comptroller for disbursement the allocations 23 made in accordance with this paragraph. 24 (d) For the purpose of determining the local 25 governmental unit whose tax is applicable, a retail sale by a 26 producer of coal or another mineral mined in Illinois is a 27 sale at retail at the place where the coal or other mineral 28 mined in Illinois is extracted from the earth. This 29 paragraph does not apply to coal or another mineral when it 30 is delivered or shipped by the seller to the purchaser at a 31 point outside Illinois so that the sale is exempt under the 32 United States Constitution as a sale in interstate or foreign 33 commerce. For purposes of determining the local governmental 34 unit whose tax is applicable under Section 2-5(32) of the -25- LRB9003379DNdv 1 Retailers' Occupation Tax Act, a retail sale by a lessor is a 2 sale at retail at the place where leased tangible personal 3 property is located. 4 (e) Nothing in this Section shall be construed to 5 authorize a county to impose a tax upon the privilege of 6 engaging in any business that under the Constitution of the 7 United States may not be made the subject of taxation by this 8 State. 9 (f) The results of any election authorizing a 10 proposition to impose a tax under this Section or effecting a 11 change in the rate of tax shall be certified by the county 12 clerk and filed with the Illinois Department of Revenue on or 13 before the first day of June. The Illinois Department of 14 Revenue shall then proceed to administer and enforce this 15 Section as of the first day of January next following the 16 filing. 17 (g) When certifying the amount of a monthly disbursement 18 to a county under this Section, the Department shall increase 19 or decrease the amounts by an amount necessary to offset any 20 miscalculation of previous disbursements. The offset amount 21 shall be the amount erroneously disbursed within the previous 22 6 months from the time a miscalculation is discovered. 23 (h) This Section may be cited as the "Special County 24 Occupation Tax For Public Safety Law". 25 (Source: P.A. 89-107, eff. 1-1-96.) 26 Section 20. The Illinois Municipal Code is amended by 27 changing Sections 8-11-1, 8-11-1.3, and 8-11-1.6 as follows: 28 (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1) 29 Sec. 8-11-1. The corporate authorities of a home rule 30 municipality may impose a tax upon all persons engaged in the 31 business of selling tangible personal property, other than an 32 item of tangible personal property titled or registered with -26- LRB9003379DNdv 1 an agency of this State's government, at retail in the 2 municipality on the gross receipts from these sales made in 3 the course of such business. If imposed, the tax shall only 4 be imposed in 1/4% increments. On and after September 1, 5 1991, this additional tax may not be imposed on the sales of 6 food for human consumption that is to be consumed off the 7 premises where it is sold (other than alcoholic beverages, 8 soft drinks and food that has been prepared for immediate 9 consumption) and prescription and nonprescription medicines, 10 drugs, medical appliances and insulin, urine testing 11 materials, syringes and needles used by diabetics. The tax 12 imposed by a home rule municipality under this Section and 13 all civil penalties that may be assessed as an incident of 14 the tax shall be collected and enforced by the State 15 Department of Revenue. The certificate of registration that 16 is issued by the Department to a retailer under the 17 Retailers' Occupation Tax Act shall permit the retailer to 18 engage in a business that is taxable under any ordinance or 19 resolution enacted pursuant to this Section without 20 registering separately with the Department under such 21 ordinance or resolution or under this Section. The 22 Department shall have full power to administer and enforce 23 this Section; to collect all taxes and penalties due 24 hereunder; to dispose of taxes and penalties so collected in 25 the manner hereinafter provided; and to determine all rights 26 to credit memoranda arising on account of the erroneous 27 payment of tax or penalty hereunder. In the administration 28 of, and compliance with, this Section the Department and 29 persons who are subject to this Section shall have the same 30 rights, remedies, privileges, immunities, powers and duties, 31 and be subject to the same conditions, restrictions, 32 limitations, penalties and definitions of terms, and employ 33 the same modes of procedure, as are prescribed in Sections 1, 34 1a, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all -27- LRB9003379DNdv 1 provisions therein other than the State rate of tax), 2c, 3 2 (except as to the disposition of taxes and penalties 3 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 4 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the 5 Retailers' Occupation Tax Act and Section 3-7 of the Uniform 6 Penalty and Interest Act, as fully as if those provisions 7 were set forth herein. 8 No tax may be imposed by a home rule municipality under 9 this Section unless the municipality also imposes a tax at 10 the same rate under Section 8-11-5 of this Act. 11 Persons subject to any tax imposed under the authority 12 granted in this Section may reimburse themselves for their 13 seller's tax liability hereunder by separately stating that 14 tax as an additional charge, which charge may be stated in 15 combination, in a single amount, with State tax which sellers 16 are required to collect under the Use Tax Act, pursuant to 17 such bracket schedules as the Department may prescribe. 18 Whenever the Department determines that a refund should 19 be made under this Section to a claimant instead of issuing a 20 credit memorandum, the Department shall notify the State 21 Comptroller, who shall cause the order to be drawn for the 22 amount specified and to the person named in the notification 23 from the Department. The refund shall be paid by the State 24 Treasurer out of the home rule municipal retailers' 25 occupation tax fund. 26 The Department shall immediately pay over to the State 27 Treasurer, ex officio, as trustee, all taxes and penalties 28 collected hereunder. On or before the 25th day of each 29 calendar month, the Department shall prepare and certify to 30 the Comptroller the disbursement of stated sums of money to 31 named municipalities, the municipalities to be those from 32 which retailers have paid taxes or penalties hereunder to the 33 Department during the second preceding calendar month. The 34 amount to be paid to each municipality shall be the amount -28- LRB9003379DNdv 1 (not including credit memoranda) collected hereunder during 2 the second preceding calendar month by the Department plus an 3 amount the Department determines is necessary to offset any 4 amounts that were erroneously paid to a different taxing 5 body, and not including an amount equal to the amount of 6 refunds made during the second preceding calendar month by 7 the Department on behalf of such municipality, and not 8 including any amount that the Department determines is 9 necessary to offset any amounts that were payable to a 10 different taxing body but were erroneously paid to the 11 municipality. Within 10 days after receipt by the Comptroller 12 of the disbursement certification to the municipalities 13 provided for in this Section to be given to the Comptroller 14 by the Department, the Comptroller shall cause the orders to 15 be drawn for the respective amounts in accordance with the 16 directions contained in the certification. 17 In addition to the disbursement required by the preceding 18 paragraph and in order to mitigate delays caused by 19 distribution procedures, an allocation shall, if requested, 20 be made within 10 days after January 14, 1991, and in 21 November of 1991 and each year thereafter, to each 22 municipality that received more than $500,000 during the 23 preceding fiscal year, (July 1 through June 30) whether 24 collected by the municipality or disbursed by the Department 25 as required by this Section. Within 10 days after January 14, 26 1991, participating municipalities shall notify the 27 Department in writing of their intent to participate. In 28 addition, for the initial distribution, participating 29 municipalities shall certify to the Department the amounts 30 collected by the municipality for each month under its home 31 rule occupation and service occupation tax during the period 32 July 1, 1989 through June 30, 1990. The allocation within 10 33 days after January 14, 1991, shall be in an amount equal to 34 the monthly average of these amounts, excluding the 2 months -29- LRB9003379DNdv 1 of highest receipts. The monthly average for the period of 2 July 1, 1990 through June 30, 1991 will be determined as 3 follows: the amounts collected by the municipality under its 4 home rule occupation and service occupation tax during the 5 period of July 1, 1990 through September 30, 1990, plus 6 amounts collected by the Department and paid to such 7 municipality through June 30, 1991, excluding the 2 months of 8 highest receipts. The monthly average for each subsequent 9 period of July 1 through June 30 shall be an amount equal to 10 the monthly distribution made to each such municipality under 11 the preceding paragraph during this period, excluding the 2 12 months of highest receipts. The distribution made in 13 November 1991 and each year thereafter under this paragraph 14 and the preceding paragraph shall be reduced by the amount 15 allocated and disbursed under this paragraph in the preceding 16 period of July 1 through June 30. The Department shall 17 prepare and certify to the Comptroller for disbursement the 18 allocations made in accordance with this paragraph. 19 For the purpose of determining the local governmental 20 unit whose tax is applicable, a retail sale by a producer of 21 coal or other mineral mined in Illinois is a sale at retail 22 at the place where the coal or other mineral mined in 23 Illinois is extracted from the earth. This paragraph does 24 not apply to coal or other mineral when it is delivered or 25 shipped by the seller to the purchaser at a point outside 26 Illinois so that the sale is exempt under the United States 27 Constitution as a sale in interstate or foreign commerce. For 28 purposes of determining the local governmental unit whose tax 29 is applicable under Section 2-5(32) of the Retailers' 30 Occupation Tax Act, a retail sale by a lessor is a sale at 31 retail at the place where leased tangible personal property 32 is located. 33 Nothing in this Section shall be construed to authorize a 34 municipality to impose a tax upon the privilege of engaging -30- LRB9003379DNdv 1 in any business which under the Constitution of the United 2 States may not be made the subject of taxation by this State. 3 An ordinance or resolution imposing or discontinuing a 4 tax hereunder or effecting a change in the rate thereof shall 5 be adopted and a certified copy thereof filed with the 6 Department on or before the first day of June, whereupon the 7 Department shall proceed to administer and enforce this 8 Section as of the first day of September next following the 9 adoption and filing. Beginning January 1, 1992, an ordinance 10 or resolution imposing or discontinuing the tax hereunder or 11 effecting a change in the rate thereof shall be adopted and a 12 certified copy thereof filed with the Department on or before 13 the first day of July, whereupon the Department shall proceed 14 to administer and enforce this Section as of the first day of 15 October next following such adoption and filing. Beginning 16 January 1, 1993, an ordinance or resolution imposing or 17 discontinuing the tax hereunder or effecting a change in the 18 rate thereof shall be adopted and a certified copy thereof 19 filed with the Department on or before the first day of 20 October, whereupon the Department shall proceed to administer 21 and enforce this Section as of the first day of January next 22 following the adoption and filing. However, a municipality 23 located in a county with a population in excess of 3,000,000 24 that elected to become a home rule unit at the general 25 primary election in 1994 may adopt an ordinance or resolution 26 imposing the tax under this Section and file a certified copy 27 of the ordinance or resolution with the Department on or 28 before July 1, 1994. The Department shall then proceed to 29 administer and enforce this Section as of October 1, 1994. 30 When certifying the amount of a monthly disbursement to a 31 municipality under this Section, the Department shall 32 increase or decrease the amount by an amount necessary to 33 offset any misallocation of previous disbursements. The 34 offset amount shall be the amount erroneously disbursed -31- LRB9003379DNdv 1 within the previous 6 months from the time a misallocation is 2 discovered. 3 Any unobligated balance remaining in the Municipal 4 Retailers' Occupation Tax Fund on December 31, 1989, which 5 fund was abolished by Public Act 85-1135, and all receipts of 6 municipal tax as a result of audits of liability periods 7 prior to January 1, 1990, shall be paid into the Local 8 Government Tax Fund for distribution as provided by this 9 Section prior to the enactment of Public Act 85-1135. All 10 receipts of municipal tax as a result of an assessment not 11 arising from an audit, for liability periods prior to January 12 1, 1990, shall be paid into the Local Government Tax Fund for 13 distribution before July 1, 1990, as provided by this Section 14 prior to the enactment of Public Act 85-1135; and on and 15 after July 1, 1990, all such receipts shall be distributed as 16 provided in Section 6z-18 of the State Finance Act. 17 As used in this Section, "municipal" and "municipality" 18 means a city, village or incorporated town, including an 19 incorporated town that has superseded a civil township. 20 This Section shall be known and may be cited as the Home 21 Rule Municipal Retailers' Occupation Tax Act. 22 (Source: P.A. 87-205; 87-435; 87-895; 88-603, eff. 9-1-94.) 23 (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3) 24 Sec. 8-11-1.3. The corporate authorities of a non-home 25 rule municipality with more than 130,000 but less than 26 2,000,000 inhabitants may impose a tax upon all persons 27 engaged in the business of selling tangible personal 28 property, other than on an item of tangible personal property 29 which is titled and registered by an agency of this State's 30 Government, at retail in the municipality at the rate of 1/2 31 of 1% for expenditure on public infrastructure as defined in 32 Section 8-11-1.2 if approved by referendum as provided in 33 Section 8-11-1.1, of the gross receipts from such sales made -32- LRB9003379DNdv 1 in the course of such business. The tax imposed by a 2 municipality pursuant to this Section and all civil penalties 3 that may be assessed as an incident thereof shall be 4 collected and enforced by the State Department of Revenue. 5 The certificate of registration which is issued by the 6 Department to a retailer under the Retailers' Occupation Tax 7 Act shall permit such retailer to engage in a business which 8 is taxable under any ordinance or resolution enacted pursuant 9 to this Section without registering separately with the 10 Department under such ordinance or resolution or under this 11 Section. The Department shall have full power to administer 12 and enforce this Section; to collect all taxes and penalties 13 due hereunder; to dispose of taxes and penalties so collected 14 in the manner hereinafter provided, and to determine all 15 rights to credit memoranda, arising on account of the 16 erroneous payment of tax or penalty hereunder. In the 17 administration of, and compliance with, this Section, the 18 Department and persons who are subject to this Section shall 19 have the same rights, remedies, privileges, immunities, 20 powers and duties, and be subject to the same conditions, 21 restrictions, limitations, penalties and definitions of 22 terms, and employ the same modes of procedure, as are 23 prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 24 through 2-65 (in respect to all provisions therein other than 25 the State rate of tax), 2c, 3 (except as to the disposition 26 of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 27 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 28 12 and 13 of the Retailers' Occupation Tax Act and Section 29 3-7 of the Uniform Penalty and Interest Act as fully as if 30 those provisions were set forth herein. 31 Persons subject to any tax imposed pursuant to the 32 authority granted in this Section may reimburse themselves 33 for their seller's tax liability hereunder by separately 34 stating such tax as an additional charge, which charge may be -33- LRB9003379DNdv 1 stated in combination, in a single amount, with State tax 2 which sellers are required to collect under the Use Tax Act, 3 pursuant to such bracket schedules as the Department may 4 prescribe. 5 Whenever the Department determines that a refund should 6 be made under this Section to a claimant instead of issuing a 7 credit memorandum, the Department shall notify the State 8 Comptroller, who shall cause the order to be drawn for the 9 amount specified, and to the person named, in such 10 notification from the Department. Such refund shall be paid 11 by the State Treasurer out of the non-home rule municipal 12 retailers' occupation tax fund. 13 The Department shall forthwith pay over to the State 14 Treasurer, ex officio, as trustee, all taxes and penalties 15 collected hereunder. On or before the 25th day of each 16 calendar month, the Department shall prepare and certify to 17 the Comptroller the disbursement of stated sums of money to 18 named municipalities, the municipalities to be those from 19 which retailers have paid taxes or penalties hereunder to the 20 Department during the second preceding calendar month. The 21 amount to be paid to each municipality shall be the amount 22 (not including credit memoranda) collected hereunder during 23 the second preceding calendar month by the Department plus an 24 amount the Department determines is necessary to offset any 25 amounts which were erroneously paid to a different taxing 26 body, and not including an amount equal to the amount of 27 refunds made during the second preceding calendar month by 28 the Department on behalf of such municipality, and not 29 including any amount which the Department determines is 30 necessary to offset any amounts which were payable to a 31 different taxing body but were erroneously paid to the 32 municipality. Within 10 days after receipt, by the 33 Comptroller, of the disbursement certification to the 34 municipalities, provided for in this Section to be given to -34- LRB9003379DNdv 1 the Comptroller by the Department, the Comptroller shall 2 cause the orders to be drawn for the respective amounts in 3 accordance with the directions contained in such 4 certification. 5 For the purpose of determining the local governmental 6 unit whose tax is applicable, a retail sale, by a producer of 7 coal or other mineral mined in Illinois, is a sale at retail 8 at the place where the coal or other mineral mined in 9 Illinois is extracted from the earth. This paragraph does 10 not apply to coal or other mineral when it is delivered or 11 shipped by the seller to the purchaser at a point outside 12 Illinois so that the sale is exempt under the Federal 13 Constitution as a sale in interstate or foreign commerce. For 14 purposes of determining the local governmental unit whose tax 15 is applicable under Section 2-5(32) of the Retailers' 16 Occupation Tax Act, a retail sale by a lessor is a sale at 17 retail at the place where leased tangible personal property 18 is located. 19 Nothing in this Section shall be construed to authorize a 20 municipality to impose a tax upon the privilege of engaging 21 in any business which under the constitution of the United 22 States may not be made the subject of taxation by this State. 23 When certifying the amount of a monthly disbursement to a 24 municipality under this Section, the Department shall 25 increase or decrease such amount by an amount necessary to 26 offset any misallocation of previous disbursements. The 27 offset amount shall be the amount erroneously disbursed 28 within the previous 6 months from the time a misallocation is 29 discovered. 30 As used in this Section, "municipal" and "municipality" 31 means a city, village or incorporated town, including an 32 incorporated town which has superseded a civil township. 33 This Section shall be known and may be cited as the 34 "Non-Home Rule Municipal Retailers' Occupation Tax Act". -35- LRB9003379DNdv 1 (Source: P.A. 86-928; 86-1475; 87-205; 87-895.) 2 (65 ILCS 5/8-11-1.6) 3 Sec. 8-11-1.6. Non-home rule municipal retailers 4 occupation tax; municipalities between 20,000 and 25,000. The 5 corporate authorities of a non-home rule municipality with a 6 population of more than 20,000 but less than 25,000 that has, 7 prior to January 1, 1987, established a Redevelopment Project 8 Area that has been certified as a State Sales Tax Boundary 9 and has issued bonds or otherwise incurred indebtedness to 10 pay for costs in excess of $5,000,000, which is secured in 11 part by a tax increment allocation fund, in accordance with 12 the provisions of Division 11-74.4 of this Code may, by 13 passage of an ordinance, impose a tax upon all persons 14 engaged in the business of selling tangible personal 15 property, other than on an item of tangible personal property 16 that is titled and registered by an agency of this State's 17 Government, at retail in the municipality. This tax may not 18 be imposed on the sales of food for human consumption that is 19 to be consumed off the premises where it is sold (other than 20 alcoholic beverages, soft drinks, and food that has been 21 prepared for immediate consumption) and prescription and 22 nonprescription medicines, drugs, medical appliances and 23 insulin, urine testing materials, syringes, and needles used 24 by diabetics. If imposed, the tax shall only be imposed in 25 .25% increments of the gross receipts from such sales made in 26 the course of business. Any tax imposed by a municipality 27 under this Sec. and all civil penalties that may be assessed 28 as an incident thereof shall be collected and enforced by the 29 State Department of Revenue. An ordinance imposing a tax 30 hereunder or effecting a change in the rate thereof shall be 31 adopted and a certified copy thereof filed with the 32 Department on or before the first day of October, whereupon 33 the Department shall proceed to administer and enforce this -36- LRB9003379DNdv 1 Section as of the first day of January next following such 2 adoption and filing. The certificate of registration that is 3 issued by the Department to a retailer under the Retailers' 4 Occupation Tax Act shall permit the retailer to engage in a 5 business that is taxable under any ordinance or resolution 6 enacted under this Section without registering separately 7 with the Department under the ordinance or resolution or 8 under this Section. The Department shall have full power to 9 administer and enforce this Section, to collect all taxes and 10 penalties due hereunder, to dispose of taxes and penalties so 11 collected in the manner hereinafter provided, and to 12 determine all rights to credit memoranda, arising on account 13 of the erroneous payment of tax or penalty hereunder. In the 14 administration of, and compliance with this Section, the 15 Department and persons who are subject to this Section shall 16 have the same rights, remedies, privileges, immunities, 17 powers, and duties, and be subject to the same conditions, 18 restrictions, limitations, penalties, and definitions of 19 terms, and employ the same modes of procedure, as are 20 prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 21 through 2-65 (in respect to all provisions therein other than 22 the State rate of tax), 2c, 3 (except as to the disposition 23 of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 24 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 25 12 and 13 of the Retailers' Occupation Tax Act and Section 26 3-7 of the Uniform Penalty and Interest Act as fully as if 27 those provisions were set forth herein. 28 A tax may not be imposed by a municipality under this 29 Section unless the municipality also imposes a tax at the 30 same rate under Section 8-11-1.7 of this Act. 31 Persons subject to any tax imposed under the authority 32 granted in this Section, may reimburse themselves for their 33 seller's tax liability hereunder by separately stating the 34 tax as an additional charge, which charge may be stated in -37- LRB9003379DNdv 1 combination, in a single amount, with State tax which sellers 2 are required to collect under the Use Tax Act, pursuant to 3 such bracket schedules as the Department may prescribe. 4 Whenever the Department determines that a refund should 5 be made under this Section to a claimant, instead of issuing 6 a credit memorandum, the Department shall notify the State 7 Comptroller, who shall cause the order to be drawn for the 8 amount specified, and to the person named in the notification 9 from the Department. The refund shall be paid by the State 10 Treasurer out of the Non-Home Rule Municipal Retailers' 11 Occupation Tax Fund, which is hereby created. 12 The Department shall forthwith pay over to the State 13 Treasurer, ex officio, as trustee, all taxes and penalties 14 collected hereunder. On or before the 25th day of each 15 calendar month, the Department shall prepare and certify to 16 the Comptroller the disbursement of stated sums of money to 17 named municipalities, the municipalities to be those from 18 which retailers have paid taxes or penalties hereunder to the 19 Department during the second preceding calendar month. The 20 amount to be paid to each municipality shall be the amount 21 (not including credit memoranda) collected hereunder during 22 the second preceding calendar month by the Department plus an 23 amount the Department determines is necessary to offset any 24 amounts that were erroneously paid to a different taxing 25 body, and not including an amount equal to the amount of 26 refunds made during the second preceding calendar month by 27 the Department on behalf of the municipality, and not 28 including any amount that the Department determines is 29 necessary to offset any amounts that were payable to a 30 different taxing body but were erroneously paid to the 31 municipality. Within 10 days after receipt by the 32 Comptroller of the disbursement certification to the 33 municipalities provided for in this Section to be given to 34 the Comptroller by the Department, the Comptroller shall -38- LRB9003379DNdv 1 cause the orders to be drawn for the respective amounts in 2 accordance with the directions contained in the 3 certification. 4 For the purpose of determining the local governmental 5 unit whose tax is applicable, a retail sale by a producer of 6 coal or other mineral mined in Illinois is a sale at retail 7 at the place where the coal or other mineral mined in 8 Illinois is extracted from the earth. This paragraph does 9 not apply to coal or other mineral when it is delivered or 10 shipped by the seller to the purchaser at a point outside 11 Illinois so that the sale is exempt under the federal 12 Constitution as a sale in interstate or foreign commerce. For 13 purposes of determining the local governmental unit whose tax 14 is applicable under Section 2-5(32) of the Retailers' 15 Occupation Tax Act, a retail sale by a lessor is a sale at 16 retail at the place where leased tangible personal property 17 is located. 18 Nothing in this Section shall be construed to authorize a 19 municipality to impose a tax upon the privilege of engaging 20 in any business which under the constitution of the United 21 States may not be made the subject of taxation by this State. 22 When certifying the amount of a monthly disbursement to a 23 municipality under this Section, the Department shall 24 increase or decrease the amount by an amount necessary to 25 offset any misallocation of previous disbursements. The 26 offset amount shall be the amount erroneously disbursed 27 within the previous 6 months from the time a misallocation is 28 discovered. 29 As used in this Section, "municipal" and "municipality" 30 means a city, village, or incorporated town, including an 31 incorporated town that has superseded a civil township. 32 (Source: P.A. 88-334; 89-399, eff. 8-20-95.) 33 Section 99. Effective date. This Act takes effect upon -39- LRB9003379DNdv 1 becoming law.