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90_SB1565
55 ILCS 5/5-1006.5
Amends the Special County Occupation Tax For Public
Safety Law in the Counties Code. Provides that the results
of the election to impose the tax shall be certified by the
county clerk and filed with the Department of Revenue within
30 days of the date of election (now on or before the first
day of June). Provides that the Department will administer
the tax as of the first day of July (now January) next
following the filing. Effective immediately.
LRB9011620KDks
LRB9011620KDks
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 may impose a tax upon
11 all persons engaged in the business of selling tangible
12 personal property, other than personal property titled or
13 registered with an agency of this State's government, at
14 retail in the county on the gross receipts from the sales
15 made in the course of business to provide revenue to be used
16 exclusively for public safety purposes in that county, if a
17 proposition for the tax has been submitted to the electors of
18 that county and approved by a majority of those voting on the
19 question. If imposed, this tax shall be imposed only in
20 one-quarter percent increments. By resolution, the county
21 board may order the proposition to be submitted at any
22 election. The county clerk shall certify the question to the
23 proper election authority, who shall submit the proposition
24 at an election in accordance with the general election law.
25 The proposition shall be in substantially the following
26 form:
27 "Shall (name of county) be authorized to impose a
28 public safety tax at the rate of .... upon all persons
29 engaged in the business of selling tangible personal
30 property at retail in the county on gross receipts from
31 the sales made in the course of their business to be used
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1 for crime prevention, detention, and other public safety
2 purposes?"
3 Votes shall be recorded as Yes or No. If a majority of the
4 electors voting on the proposition vote in favor of it, the
5 county may impose the tax.
6 This additional tax may not be imposed on the sales of
7 food for human consumption that is to be consumed off the
8 premises where it is sold (other than alcoholic beverages,
9 soft drinks, and food which has been prepared for immediate
10 consumption) and prescription and non-prescription medicines,
11 drugs, medical appliances and insulin, urine testing
12 materials, syringes, and needles used by diabetics. The tax
13 imposed by a county under this Section and all civil
14 penalties that may be assessed as an incident of the tax
15 shall be collected and enforced by the Illinois Department of
16 Revenue. The certificate of registration that is issued by
17 the Department to a retailer under the Retailers' Occupation
18 Tax Act shall permit the retailer to engage in a business
19 that is taxable without registering separately with the
20 Department under an ordinance or resolution under this
21 Section. The Department has full power to administer and
22 enforce this Section, to collect all taxes and penalties due
23 under this Section, to dispose of taxes and penalties so
24 collected in the manner provided in this Section, and to
25 determine all rights to credit memoranda arising on account
26 of the erroneous payment of a tax or penalty under this
27 Section. In the administration of and compliance with this
28 Section, the Department and persons who are subject to this
29 Section shall (i) have the same rights, remedies, privileges,
30 immunities, powers, and duties, (ii) be subject to the same
31 conditions, restrictions, limitations, penalties, and
32 definitions of terms, and (iii) employ the same modes of
33 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
34 1f, 1i, 1j, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
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1 contained in those Sections other than the State rate of
2 tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except provisions
3 relating to transaction returns and quarter monthly
4 payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
5 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
6 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
7 Penalty and Interest Act as if those provisions were set
8 forth in this Section.
9 Persons subject to any tax imposed under the authority
10 granted in this Section may reimburse themselves for their
11 sellers' tax liability by separately stating the tax as an
12 additional charge, which charge may be stated in combination,
13 in a single amount, with State tax which sellers are required
14 to collect under the Use Tax Act, pursuant to such bracketed
15 schedules as the Department may prescribe.
16 Whenever the Department determines that a refund should
17 be made under this Section to a claimant instead of issuing a
18 credit memorandum, the Department shall notify the State
19 Comptroller, who shall cause the order to be drawn for the
20 amount specified and to the person named in the notification
21 from the Department. The refund shall be paid by the State
22 Treasurer out of the County Public Safety Retailers'
23 Occupation Tax Fund.
24 (b) If a tax has been imposed under subsection (a), a
25 service occupation tax shall also be imposed at the same rate
26 upon all persons engaged, in the county, in the business of
27 making sales of service, who, as an incident to making those
28 sales of service, transfer tangible personal property within
29 the county as an incident to a sale of service. This tax may
30 not be imposed on sales of food for human consumption that is
31 to be consumed off the premises where it is sold (other than
32 alcoholic beverages, soft drinks, and food prepared for
33 immediate consumption) and prescription and non-prescription
34 medicines, drugs, medical appliances and insulin, urine
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1 testing materials, syringes, and needles used by diabetics.
2 The tax imposed under this subsection and all civil penalties
3 that may be assessed as an incident thereof shall be
4 collected and enforced by the Department of Revenue. The
5 Department has full power to administer and enforce this
6 subsection; to collect all taxes and penalties due hereunder;
7 to dispose of taxes and penalties so collected in the manner
8 hereinafter provided; and to determine all rights to credit
9 memoranda arising on account of the erroneous payment of tax
10 or penalty hereunder. In the administration of, and
11 compliance with this subsection, the Department and persons
12 who are subject to this paragraph shall (i) have the same
13 rights, remedies, privileges, immunities, powers, and duties,
14 (ii) be subject to the same conditions, restrictions,
15 limitations, penalties, exclusions, exemptions, and
16 definitions of terms, and (iii) employ the same modes of
17 procedure as are prescribed in Sections 1a-1, 2 (except that
18 the reference to State in the definition of supplier
19 maintaining a place of business in this State shall mean the
20 county), 2a, 3 through 3-50 (in respect to all provisions
21 therein other than the State rate of tax), 4 (except that the
22 reference to the State shall be to the county), 5, 7, 8
23 (except that the jurisdiction to which the tax shall be a
24 debt to the extent indicated in that Section 8 shall be the
25 county), 9 (except as to the disposition of taxes and
26 penalties collected, and except that the returned merchandise
27 credit for this tax may not be taken against any State tax),
28 10, 11, 12 (except the reference therein to Section 2b of the
29 Retailers' Occupation Tax Act), 13 (except that any reference
30 to the State shall mean the county), the first paragraph of
31 Section 15, 16, 17, 18, 19 and 20 of the Service 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 Persons subject to any tax imposed under the authority
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1 granted in this subsection may reimburse themselves for their
2 serviceman's tax liability by separately stating the tax as
3 an additional charge, which charge may be stated in
4 combination, in a single amount, with State tax that
5 servicemen are authorized to collect under the Service Use
6 Tax Act, in accordance with such bracket schedules as the
7 Department may prescribe.
8 Whenever the Department determines that a refund should
9 be made under this subsection to a claimant instead of
10 issuing a credit memorandum, the Department shall notify the
11 State Comptroller, who shall cause the warrant to be drawn
12 for the amount specified, and to the person named, in the
13 notification from the Department. The refund shall be paid
14 by the State Treasurer out of the County Public Safety
15 Retailers' Occupation Fund.
16 Nothing in this subsection shall be construed to
17 authorize the county to impose a tax upon the privilege of
18 engaging in any business which under the Constitution of the
19 United States may not be made the subject of taxation by the
20 State.
21 (c) The Department shall immediately pay over to the
22 State Treasurer, ex officio, as trustee, all taxes and
23 penalties collected under this Section to be deposited into
24 the County Public Safety Retailers' Occupation Tax Fund,
25 which shall be an unappropriated trust fund held outside of
26 the State treasury. On or before the 25th day of each
27 calendar month, the Department shall prepare and certify to
28 the Comptroller the disbursement of stated sums of money to
29 the counties from which retailers have paid taxes or
30 penalties to the Department during the second preceding
31 calendar month. The amount to be paid to each county shall
32 be the amount (not including credit memoranda) collected
33 under this Section during the second preceding calendar month
34 by the Department plus an amount the Department determines is
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1 necessary to offset any amounts that were erroneously paid to
2 a different taxing body, and not including (i) an amount
3 equal to the amount of refunds made during the second
4 preceding calendar month by the Department on behalf of the
5 county and (ii) any amount that the Department determines is
6 necessary to offset any amounts that were payable to a
7 different taxing body but were erroneously paid to the
8 county. Within 10 days after receipt by the Comptroller of
9 the disbursement certification to the counties provided for
10 in this Section to be given to the Comptroller by the
11 Department, the Comptroller shall cause the orders to be
12 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
21 within 30 days of the date of election on or before the first
22 day of June. The Illinois Department of Revenue shall then
23 proceed to administer and enforce this Section or to lower
24 the rate or discontinue the tax, as the case may be, as of
25 the first day of July January next following 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 (i) For purposes of this Section, "public safety"
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1 includes but is not limited to fire fighting, police,
2 medical, ambulance, or other emergency services.
3 (Source: P.A. 89-107, eff. 1-1-96; 89-718, eff. 3-7-97;
4 90-190, eff. 7-24-97; 90-267, eff. 7-30-97; 90-552, eff.
5 12-12-97; 90-562, eff. 12-16-97; revised 12-30-97.)
6 Section 99. Effective date. This Act takes effect upon
7 becoming law.