State of Illinois
90th General Assembly
Legislation

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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
HB1417 Engrossed            -2-                LRB9003559KDks
 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
HB1417 Engrossed            -3-                LRB9003559KDks
 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
HB1417 Engrossed            -4-                LRB9003559KDks
 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.
HB1417 Engrossed            -5-                LRB9003559KDks
 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
HB1417 Engrossed            -6-                LRB9003559KDks
 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
HB1417 Engrossed            -7-                LRB9003559KDks
 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.)
HB1417 Engrossed            -8-                LRB9003559KDks
 1        Section  99.  Effective date.  This Act takes effect upon
 2    becoming law.

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