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90_HB1417eng
55 ILCS 5/5-1006.5
Amends the Special County Occupation Tax For Public
Safety Law in the Counties Code. Provides that the county
board of a county that imposes the tax may, by ordinance,
discontinue the tax or lower the rate of the tax. Provides
that if the county board lowers the rate or discontinues the
tax, a referendum must be held in order to increase the rate
or reimpose the tax. Effective immediately.
LRB9003559KDks
HB1417 Engrossed LRB9003559KDks
1 AN ACT to amend the Counties Code by changing Section
2 5-1006.5.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Counties Code is amended by changing
6 Section 5-1006.5 as follows:
7 (55 ILCS 5/5-1006.5)
8 Sec. 5-1006.5. Special County Retailers' Occupation Tax
9 For Public Safety.
10 (a) The county board of any county with a population in
11 excess of 180,000 inhabitants, as determined by the most
12 recent decennial census, may impose a tax upon all persons
13 engaged in the business of selling tangible personal
14 property, other than personal property titled or registered
15 with an agency of this State's government, at retail in the
16 county on the gross receipts from the sales made in the
17 course of business to provide revenue to be used exclusively
18 for public safety purposes in that county, if a proposition
19 for the tax has been submitted to the electors of that county
20 and approved by a majority of those voting on the question.
21 If imposed, this tax shall be imposed only in one-quarter
22 percent increments. By resolution, the county board may order
23 the proposition to be submitted at any election. The county
24 clerk shall certify the question to the proper election
25 authority, who shall submit the proposition at an election in
26 accordance with the general election law.
27 The proposition shall be in substantially the following
28 form:
29 "Shall (name of county) be authorized to impose a
30 public safety tax at the rate of .... upon all persons
31 engaged in the business of selling tangible personal
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1 property at retail in the county on gross receipts from
2 the sales made in the course of their business to be used
3 for crime prevention, detention, and other public safety
4 purposes?"
5 Votes shall be recorded as Yes or No. If a majority of the
6 electors voting on the proposition vote in favor of it, the
7 county may impose the tax.
8 This additional tax may not be imposed on the sales of
9 food for human consumption that is to be consumed off the
10 premises where it is sold (other than alcoholic beverages,
11 soft drinks, and food which has been prepared for immediate
12 consumption) and prescription and non-prescription medicines,
13 drugs, medical appliances and insulin, urine testing
14 materials, syringes, and needles used by diabetics. The tax
15 imposed by a county under this Section and all civil
16 penalties that may be assessed as an incident of the tax
17 shall be collected and enforced by the Illinois Department of
18 Revenue. The certificate of registration that is issued by
19 the Department to a retailer under the Retailers' Occupation
20 Tax Act shall permit the retailer to engage in a business
21 that is taxable without registering separately with the
22 Department under an ordinance or resolution under this
23 Section. The Department has full power to administer and
24 enforce this Section, to collect all taxes and penalties due
25 under this Section, to dispose of taxes and penalties so
26 collected in the manner provided in this Section, and to
27 determine all rights to credit memoranda arising on account
28 of the erroneous payment of a tax or penalty under this
29 Section. In the administration of and compliance with this
30 Section, the Department and persons who are subject to this
31 Section shall (i) have the same rights, remedies, privileges,
32 immunities, powers, and duties, (ii) be subject to the same
33 conditions, restrictions, limitations, penalties, and
34 definitions of terms, and (iii) employ the same modes of
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1 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
2 1f, 1i, 1j, 2, 2-10 (in respect to all provisions contained
3 in those Sections other than the State rate of tax), 2-40,
4 2a, 2b, 2c, 3 (except provisions relating to transaction
5 returns and quarter monthly payments), 4, 5, 5a, 5b, 5c, 5d,
6 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10,
7 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act and
8 Section 3-7 of the Uniform Penalty and Interest Act as if
9 those provisions were set forth in this Section.
10 Persons subject to any tax imposed under the authority
11 granted in this Section may reimburse themselves for their
12 sellers' tax liability by separately stating the tax as an
13 additional charge, which charge may be stated in combination,
14 in a single amount, with State tax which sellers are required
15 to collect under the Use Tax Act, pursuant to such bracketed
16 schedules as the Department may prescribe.
17 Whenever the Department determines that a refund should
18 be made under this Section to a claimant instead of issuing a
19 credit memorandum, the Department shall notify the State
20 Comptroller, who shall cause the order to be drawn for the
21 amount specified and to the person named in the notification
22 from the Department. The refund shall be paid by the State
23 Treasurer out of the County Public Safety Retailers'
24 Occupation Tax Fund.
25 (b) If a tax has been imposed under subsection (a), a
26 service occupation tax shall also be imposed at the same rate
27 upon all persons engaged, in the county, in the business of
28 making sales of service, who, as an incident to making those
29 sales of service, transfer tangible personal property within
30 the county as an incident to a sale of service. This tax may
31 not be imposed on sales of food for human consumption that is
32 to be consumed off the premises where it is sold (other than
33 alcoholic beverages, soft drinks, and food prepared for
34 immediate consumption) and prescription and non-prescription
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1 medicines, drugs, medical appliances and insulin, urine
2 testing materials, syringes, and needles used by diabetics.
3 The tax imposed under this subsection and all civil penalties
4 that may be assessed as an incident thereof shall be
5 collected and enforced by the Department of Revenue. The
6 Department has full power to administer and enforce this
7 subsection; to collect all taxes and penalties due hereunder;
8 to dispose of taxes and penalties so collected in the manner
9 hereinafter provided; and to determine all rights to credit
10 memoranda arising on account of the erroneous payment of tax
11 or penalty hereunder. In the administration of, and
12 compliance with this subsection, the Department and persons
13 who are subject to this paragraph shall (i) have the same
14 rights, remedies, privileges, immunities, powers, and duties,
15 (ii) be subject to the same conditions, restrictions,
16 limitations, penalties, exclusions, exemptions, and
17 definitions of terms, and (iii) employ the same modes of
18 procedure as are prescribed in Sections 1a-1, 2 (except that
19 the reference to State in the definition of supplier
20 maintaining a place of business in this State shall mean the
21 county), 2a, 3 through 3-50 (in respect to all provisions
22 therein other than the State rate of tax), 4 (except that the
23 reference to the State shall be to the county), 5, 7, 8
24 (except that the jurisdiction to which the tax shall be a
25 debt to the extent indicated in that Section 8 shall be the
26 county), 9 (except as to the disposition of taxes and
27 penalties collected, and except that the returned merchandise
28 credit for this tax may not be taken against any State tax),
29 10, 11, 12 (except the reference therein to Section 2b of the
30 Retailers' Occupation Tax Act), 13 (except that any reference
31 to the State shall mean the county), the first paragraph of
32 Section 15, 16, 17, 18, 19 and 20 of the Service Occupation
33 Tax Act and Section 3-7 of the Uniform Penalty and Interest
34 Act, as fully as if those provisions were set forth herein.
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1 Persons subject to any tax imposed under the authority
2 granted in this subsection may reimburse themselves for their
3 serviceman's tax liability by separately stating the tax as
4 an additional charge, which charge may be stated in
5 combination, in a single amount, with State tax that
6 servicemen are authorized to collect under the Service Use
7 Tax Act, in accordance with such bracket schedules as the
8 Department may prescribe.
9 Whenever the Department determines that a refund should
10 be made under this subsection to a claimant instead of
11 issuing a credit memorandum, the Department shall notify the
12 State Comptroller, who shall cause the warrant to be drawn
13 for the amount specified, and to the person named, in the
14 notification from the Department. The refund shall be paid
15 by the State Treasurer out of the County Public Safety
16 Retailers' Occupation Fund.
17 Nothing in this subsection shall be construed to
18 authorize the county to impose a tax upon the privilege of
19 engaging in any business which under the Constitution of the
20 United States may not be made the subject of taxation by the
21 State.
22 (c) The Department shall immediately pay over to the
23 State Treasurer, Ex Officio, as trustee, all taxes and
24 penalties collected under this Section to be deposited into
25 the County Public Safety Retailers' Occupation Tax Fund,
26 which is created in the State treasury. On or before the
27 25th day of each calendar month, the Department shall prepare
28 and certify to the Comptroller the disbursement of stated
29 sums of money to the counties from which retailers have paid
30 taxes or penalties to the Department during the second
31 preceding calendar month. The amount to be paid to each
32 county shall be the amount (not including credit memoranda)
33 collected under this Section during the second preceding
34 calendar month by the Department plus an amount the
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1 Department determines is necessary to offset any amounts that
2 were erroneously paid to a different taxing body, and not
3 including (i) an amount equal to the amount of refunds made
4 during the second preceding calendar month by the Department
5 on behalf of the county and (ii) any amount that the
6 Department determines is necessary to offset any amounts that
7 were payable to a different taxing body but were erroneously
8 paid to the county. Within 10 days after receipt by the
9 Comptroller of the disbursement certification to the counties
10 provided for in this Section to be given to the Comptroller
11 by the Department, the Comptroller shall cause the orders to
12 be drawn for the respective amounts in accordance with
13 directions contained in the certification.
14 In addition to the disbursement required by the preceding
15 paragraph, an allocation shall be made in March of each year
16 to each county that received more than $500,000 in
17 disbursements under the preceding paragraph in the preceding
18 calendar year. The allocation shall be in an amount equal to
19 the average monthly distribution made to each such county
20 under the preceding paragraph during the preceding calendar
21 year (excluding the 2 months of highest receipts). The
22 distribution made in March of each year subsequent to the
23 year in which an allocation was made pursuant to this
24 paragraph and the preceding paragraph shall be reduced by the
25 amount allocated and disbursed under this paragraph in the
26 preceding calendar year. The Department shall prepare and
27 certify to the Comptroller for disbursement the allocations
28 made in accordance with this paragraph.
29 (d) For the purpose of determining the local
30 governmental unit whose tax is applicable, a retail sale by a
31 producer of coal or another mineral mined in Illinois is a
32 sale at retail at the place where the coal or other mineral
33 mined in Illinois is extracted from the earth. This
34 paragraph does not apply to coal or another mineral when it
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1 is delivered or shipped by the seller to the purchaser at a
2 point outside Illinois so that the sale is exempt under the
3 United States Constitution as a sale in interstate or foreign
4 commerce.
5 (e) Nothing in this Section shall be construed to
6 authorize a county to impose a tax upon the privilege of
7 engaging in any business that under the Constitution of the
8 United States may not be made the subject of taxation by this
9 State.
10 (e-5) If a county imposes a tax under this Section, the
11 county board may, by ordinance, discontinue or lower the rate
12 of the tax. If the county board lowers the tax rate or
13 discontinues the tax, a referendum must be held in accordance
14 with subsection (a) of this Section in order to increase the
15 rate of the tax or to reimpose the discontinued tax.
16 (f) The results of any election authorizing a
17 proposition to impose a tax under this Section or effecting a
18 change in the rate of tax, or any ordinance lowering the rate
19 or discontinuing the tax, shall be certified by the county
20 clerk and filed with the Illinois Department of Revenue on or
21 before the first day of June. The Illinois Department of
22 Revenue shall then proceed to administer and enforce this
23 Section or to lower the rate or discontinue the tax, as the
24 case may be, as of the first day of January next following
25 the filing.
26 (g) When certifying the amount of a monthly disbursement
27 to a county under this Section, the Department shall increase
28 or decrease the amounts by an amount necessary to offset any
29 miscalculation of previous disbursements. The offset amount
30 shall be the amount erroneously disbursed within the previous
31 6 months from the time a miscalculation is discovered.
32 (h) This Section may be cited as the "Special County
33 Occupation Tax For Public Safety Law".
34 (Source: P.A. 89-107, eff. 1-1-96.)
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.