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| [ House Amendment 002 ] |
90_HB0687
55 ILCS 5/5-1008.5 new
70 ILCS 510/18.2 rep.
Amends the Counties Code. Allows the Rock Island County
Board, upon referendum approval, to impose a retailers'
occupation tax, a service occupation tax, and a use tax at a
rate of 1/4 of 1% for the sole purpose of obtaining funds for
the economic development activities of Rock Island county and
communities located within the county, including creation and
retention of job opportunities, support of affordable housing
opportunities, and enhancement of quality of life
improvements. Repeals a Section in the Quad Cities Regional
Economic Development Authority Act allowing the Quad Cities
Regional Economic Development Authority, upon referendum
approval, to impose a retailers' occupation tax and a service
occupation tax to finance a U.S. Department of Defense
facility. Effective immediately.
LRB9000094KDpcA
LRB9000094KDpcA
1 AN ACT in relation to taxes, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Counties Code is amended by adding
5 Section 5-1008.5 as follows:
6 (55 ILCS 5/5-1008.5 new)
7 Sec. 5-1008.5. Use and occupation taxes.
8 (a) The Rock Island County Board may adopt a resolution
9 that authorizes a referendum on the question of whether the
10 county shall be authorized to impose a retailers' occupation
11 tax, a service occupation tax, and a use tax at a rate of 1/4
12 of 1% on behalf of the economic development activities of
13 Rock Island county and communities located within the county.
14 The county board shall certify the question to the proper
15 election authorities who shall submit the question to the
16 voters of the county at the next regularly scheduled election
17 in accordance with the general election law. The question
18 shall be in substantially the following form:
19 Shall Rock Island County be authorized to impose a
20 retailers' occupation tax, a service occupation tax, and
21 a use tax at the rate of 1/4 of 1% for the sole purpose
22 of economic development activities, including creation
23 and retention of job opportunities, support of affordable
24 housing opportunities, and enhancement of quality of life
25 improvements?
26 Votes shall be recorded as "yes" or "no". If a majority
27 of all votes cast on the proposition are in favor of the
28 proposition, the county is authorized to impose the tax.
29 (b) The county shall impose the retailers' occupation
30 tax upon all persons engaged in the business of selling
31 tangible personal property at retail in the county, at the
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1 rate approved by referendum, on the gross receipts from the
2 sales made in the course of those businesses within the
3 county. This additional tax may not be imposed on the sale 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 that 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 under this Section and all civil penalties that may
11 be assessed as an incident of the tax shall be collected and
12 enforced by the Department of Revenue. The Department has
13 full power to administer and enforce this Section; to collect
14 all taxes and penalties so collected in the manner provided
15 in this Section; and to determine all rights to credit
16 memoranda arising on account of the erroneous payment of tax
17 or penalty under this Section. In the administration of, and
18 compliance with, this Section, the Department and persons who
19 are subject to this Section shall (i) have the same rights,
20 remedies, privileges, immunities, powers and duties, (ii) be
21 subject to the same conditions, restrictions, limitations,
22 penalties, exclusions, exemptions, and definitions of terms,
23 and (iii) employ the same modes of procedure as are
24 prescribed in Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j,
25 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
26 other than the State rate of tax), 2-15 through 2-70, 2a, 2b,
27 2c, 3 (except as to the disposition of taxes and penalties
28 collected and provisions related to quarter monthly
29 payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l,
30 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
31 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
32 Penalty and Interest Act, as fully as if those provisions
33 were set forth in this subsection.
34 Persons subject to any tax imposed under this subsection
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1 may reimburse themselves for their seller's tax liability by
2 separately stating the tax as an additional charge, which
3 charge may be stated in combination, in a single amount, with
4 State taxes that sellers are required to collect, in
5 accordance with bracket schedules prescribed by the
6 Department.
7 Whenever the Department determines that a refund should
8 be made under this subsection to a claimant instead of
9 issuing a credit memorandum, the Department shall notify the
10 State Comptroller, who shall cause the warrant to be drawn
11 for the amount specified, and to the person named, in the
12 notification from the Department. The refund shall be paid
13 by the State Treasurer out of the tax fund referenced under
14 paragraph (g) of this Section.
15 If a tax is imposed under this subsection (b), a tax
16 shall also be imposed at the same rate under subsections (c)
17 and (d) of this Section.
18 For the purpose of determining whether a tax authorized
19 under this Section is applicable, a retail sale, by a
20 producer of coal or another mineral mined in Illinois, is a
21 sale at retail at the place where the coal or other mineral
22 mined in Illinois is extracted from the earth. This
23 paragraph does not apply to coal or another mineral when it
24 is delivered or shipped by the seller to the purchaser at a
25 point outside Illinois so that the sale is exempt under the
26 federal Constitution as a sale in interstate or foreign
27 commerce.
28 Nothing in this Section shall be construed to authorize
29 the county to impose a tax upon the privilege of engaging in
30 any business that under the Constitution of the United States
31 may not be made the subject of taxation by this State.
32 (c) If a tax has been imposed under subsection (b), a
33 service occupation tax shall also be imposed at the same rate
34 upon all persons engaged, in the county, in the business of
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1 making sales of service, who, as an incident to making those
2 sales of service, transfer tangible personal property within
3 the county as an incident to a sale of service. This
4 additional tax may not be imposed on the sale of food for
5 human consumption that is to be consumed off the premises
6 where it is sold (other than alcoholic beverages, soft
7 drinks, and food that has been prepared for immediate
8 consumption) and prescription and non-prescription medicines,
9 drugs, medical appliances and insulin, urine testing
10 materials, syringes, and needless used by diabetics. The tax
11 imposed under this subsection and all civil penalties that
12 may be assessed as an incident of the tax shall be collected
13 and enforced by the Department of Revenue. The Department has
14 full power to administer and enforce this paragraph; to
15 collect all taxes and penalties due under this Section; to
16 dispose of taxes and penalties so collected in the manner
17 provided in this Section; and to determine all rights to
18 credit memoranda arising on account of the erroneous payment
19 of tax or penalty under this Section. In the administration
20 of, and compliance with this paragraph, the Department and
21 persons who are subject to this paragraph shall (i) have the
22 same rights, remedies, privileges, immunities, powers, and
23 duties, (ii) be subject to the same conditions, restrictions,
24 limitations, penalties, exclusions, exemptions, and
25 definitions of terms, and (iii) employ the same modes of
26 procedure as are prescribed in Sections 2 (except that the
27 reference to State in the definition of supplier maintaining
28 a place of business in this State shall mean the county), 2a,
29 2b, 3 through 3-55 (in respect to all provisions other than
30 the State rate of tax), 4 (except that the reference to the
31 State shall be to the county), 5, 7, 8 (except that the
32 jurisdiction to which the tax shall be a debt to the extent
33 indicated in that Section 8 shall be the county), 9 (except
34 as to the disposition of taxes and penalties collected, and
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1 except that the returned merchandise credit for this tax may
2 not be taken against any State tax), 11, 12 (except the
3 reference to Section 2b of the Retailers' Occupation Tax
4 Act), 13 (except that any reference to the State shall mean
5 the county), 15, 16, 17, 18, 19 and 20 of the Service
6 Occupation Tax Act and Section 3-7 of the Uniform Penalty and
7 Interest Act, as fully as if those provisions were set forth
8 in this subsection.
9 Persons subject to any tax imposed under the authority
10 granted in this subsection may reimburse themselves for their
11 serviceman's tax liability by separately stating the tax as
12 an additional charge, which charge may be stated in
13 combination, in a single amount, with State tax that
14 servicemen are authorized to collect under the Service Use
15 Tax Act, in accordance with bracket schedules prescribed by
16 the Department.
17 Whenever the Department determines that a refund should
18 be made under this subsection to a claimant instead of
19 issuing a credit memorandum, the Department shall notify the
20 State Comptroller, who shall cause the warrant to be drawn
21 for the amount specified, and to the person named, in the
22 notification from the Department. The refund shall be paid
23 by the State Treasurer out of the tax fund referenced under
24 paragraph (g) of this Section.
25 Nothing in this paragraph shall be construed to authorize
26 the county to impose a tax upon the privilege of engaging in
27 any business that under the Constitution of the United States
28 may not be made the subject of taxation by the State.
29 (d) If a tax has been imposed under subsection (b), a
30 use tax shall also be imposed at the same rate upon the
31 privilege of using, in the county, any item of tangible
32 personal property that is purchased outside the county at
33 retail from a retailer, and that is titled or registered at a
34 location within the county with an agency of this State's
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1 government. This additional tax may not be imposed on the
2 sale of food for human consumption that is to be consumed off
3 the premises where it is sold (other than alcoholic
4 beverages, soft drinks, and food that has been prepared for
5 immediate consumption) and prescription and non-prescription
6 medicines, drugs, medical appliances and insulin, urine
7 testing materials, syringes, and needless used by diabetics.
8 "Selling price" is defined as in the Use Tax Act. The tax
9 shall be collected from persons whose Illinois address for
10 titling or registration purposes is given as being in the
11 county. The tax shall be collected by the Department of
12 Revenue for the county. The tax must be paid to the State, or
13 an exemption determination must be obtained from the
14 Department of Revenue, before the title or certificate of
15 registration for the property may be issued. The tax or
16 proof of exemption may be transmitted to the Department by
17 way of the State agency with which, or the State officer with
18 whom, the tangible personal property must be titled or
19 registered if the Department and the State agency or State
20 officer determine that this procedure will expedite the
21 processing of applications for title or registration.
22 The Department has full power to administer and enforce
23 this paragraph; to collect all taxes, penalties, and interest
24 due under this Section; to dispose of taxes, penalties, and
25 interest so collected in the manner provided in this Section;
26 and to determine all rights to credit memoranda or refunds
27 arising on account of the erroneous payment of tax, penalty,
28 or interest under this Section. In the administration of, and
29 compliance with, this subsection, the Department and persons
30 who are subject to this paragraph shall (i) have the same
31 rights, remedies, privileges, immunities, powers, and duties,
32 (ii) be subject to the same conditions, restrictions,
33 limitations, penalties, exclusions, exemptions, and
34 definitions of terms, and (iii) employ the same modes of
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1 procedure as are prescribed in Sections 2 (except the
2 definition of "retailer maintaining a place of business in
3 this State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a,
4 4, 6, 7, 8 (except that the jurisdiction to which the tax
5 shall be a debt to the extent indicated in that Section 8
6 shall be the county), 9 (except provisions relating to
7 quarter monthly payments), 10, 11, 12, 12a, 12b, 13, 14, 15,
8 19, 20, 21, and 22 of the Use Tax Act and Section 3-7 of the
9 Uniform Penalty and Interest Act, that are not inconsistent
10 with this paragraph, as fully as if those provisions were set
11 forth in this subsection.
12 Whenever the Department determines that a refund should
13 be made under this subsection to a claimant instead of
14 issuing a credit memorandum, the Department shall notify the
15 State Comptroller, who shall cause the order to be drawn for
16 the amount specified, and to the person named, in the
17 notification from the Department. The refund shall be paid by
18 the State Treasurer out of the tax fund referenced under
19 paragraph (g) of this Section.
20 (e) A certificate of registration issued by the State
21 Department of Revenue to a retailer under the Retailers'
22 Occupation Tax Act or under the Service Occupation Tax Act
23 shall permit the registrant to engage in a business that is
24 taxed under the tax imposed under paragraphs (b), (c), or (d)
25 of this Section and no additional registration shall be
26 required. A certificate issued under the Use Tax Act or the
27 Service Use Tax Act shall be applicable with regard to any
28 tax imposed under paragraph (c) of this Section.
29 (f) The results of any election authorizing a
30 proposition to impose a tax under this Section or effecting a
31 change in the rate of tax shall be certified by the proper
32 election authorities and filed with the Illinois Department
33 on or before the first day of April. In addition, an
34 ordinance imposing, discontinuing, or effecting a change in
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1 the rate of tax under this Section shall be adopted and a
2 certified copy of the ordinance filed with the Department on
3 or before the first day of April. After proper receipt of
4 the certifications, the Department shall proceed to
5 administer and enforce this Section as of the first day of
6 July next following the adoption and filing.
7 (g) The Department of Revenue shall, upon collecting any
8 taxes and penalties as provided in this Section, pay the
9 taxes and penalties over to the State Treasurer as trustee
10 for the county. The taxes and penalties shall be held in a
11 trust fund outside the State Treasury. On or before the 25th
12 day of each calendar month, the Department of Revenue shall
13 prepare and certify to the Comptroller of the State of
14 Illinois the amount to be paid to the county, which shall be
15 the balance in the fund, less any amount determined by the
16 Department to be necessary for the payment of refunds. Within
17 10 days after receipt by the Comptroller of the certification
18 of the amount to be paid to the county, the Comptroller shall
19 cause an order to be drawn for payment for the amount in
20 accordance with the directions contained in the
21 certification. Amounts received from the tax imposed under
22 this Section shall be used only for the economic development
23 activities of the county and communities located within the
24 county.
25 (h) When certifying the amount of a monthly disbursement
26 to the county under this Section, the Department shall
27 increase or decrease the amounts by an amount necessary to
28 offset any miscalculation of previous disbursements. The
29 offset amount shall be the amount erroneously disbursed
30 within the previous 6 months from the time a miscalculation
31 is discovered.
32 (i) This Section may be cited as the Rock Island County
33 Use and Occupation Tax Law.
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1 (70 ILCS 510/18.2 rep.)
2 Section 10. The Quad Cities Regional Economic
3 Development Authority Act, approved September 22, 1987, is
4 amended by repealing Section 18.2.
5 Section 99. Effective date. This Act takes effect upon
6 becoming law.