[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ Enrolled ] |
| [ House Amendment 001 ] | [ House Amendment 002 ] | [ Senate Amendment 001 ] |
91_SB1310sam002
LRB9110257SMdvam06
1 AMENDMENT TO SENATE BILL 1310
2 AMENDMENT NO. . Amend Senate Bill 1310, AS AMENDED,
3 by replacing the title with the following:
4 "AN ACT in relation to taxes."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Use Tax Act is amended by changing
8 Sections 3-10 and 9 as follows:
9 (35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
10 Sec. 3-10. Rate of tax. Unless otherwise provided in
11 this Section, the tax imposed by this Act is at the rate of
12 6.25% of either the selling price or the fair market value,
13 if any, of the tangible personal property. In all cases
14 where property functionally used or consumed is the same as
15 the property that was purchased at retail, then the tax is
16 imposed on the selling price of the property. In all cases
17 where property functionally used or consumed is a by-product
18 or waste product that has been refined, manufactured, or
19 produced from property purchased at retail, then the tax is
20 imposed on the lower of the fair market value, if any, of the
21 specific property so used in this State or on the selling
-2- LRB9110257SMdvam06
1 price of the property purchased at retail. For purposes of
2 this Section "fair market value" means the price at which
3 property would change hands between a willing buyer and a
4 willing seller, neither being under any compulsion to buy or
5 sell and both having reasonable knowledge of the relevant
6 facts. The fair market value shall be established by Illinois
7 sales by the taxpayer of the same property as that
8 functionally used or consumed, or if there are no such sales
9 by the taxpayer, then comparable sales or purchases of
10 property of like kind and character in Illinois.
11 With respect to motor fuel, as defined in Section 1.1 of
12 the Motor Fuel Tax Law, and gasohol, as defined in Section
13 3-40 of the Use Tax Act, the tax is imposed at the rate of
14 1.25%. If, however, the aggregate tax revenues from motor
15 fuel and gasohol under the Motor Fuel Tax Law during the
16 period from October 1, 2002 through September 30, 2003 are
17 not at least 15% more than the aggregate tax revenues from
18 motor fuel and gasohol under that Law during the period from
19 October 1, 1999 through September 30, 2000, then beginning
20 January 1, 2004 the tax is imposed on motor fuel and gasohol
21 at the 6.25% general rate.
22 With respect to gasohol, the tax imposed by this Act
23 applies to 70% of the proceeds of sales made on or after
24 January 1, 1990, and before July 1, 2003, and to 100% of the
25 proceeds of sales made thereafter.
26 With respect to food for human consumption that is to be
27 consumed off the premises where it is sold (other than
28 alcoholic beverages, soft drinks, and food that has been
29 prepared for immediate consumption) and prescription and
30 nonprescription medicines, drugs, medical appliances,
31 modifications to a motor vehicle for the purpose of rendering
32 it usable by a disabled person, and insulin, urine testing
33 materials, syringes, and needles used by diabetics, for human
34 use, the tax is imposed at the rate of 1%. For the purposes
-3- LRB9110257SMdvam06
1 of this Section, the term "soft drinks" means any complete,
2 finished, ready-to-use, non-alcoholic drink, whether
3 carbonated or not, including but not limited to soda water,
4 cola, fruit juice, vegetable juice, carbonated water, and all
5 other preparations commonly known as soft drinks of whatever
6 kind or description that are contained in any closed or
7 sealed bottle, can, carton, or container, regardless of size.
8 "Soft drinks" does not include coffee, tea, non-carbonated
9 water, infant formula, milk or milk products as defined in
10 the Grade A Pasteurized Milk and Milk Products Act, or drinks
11 containing 50% or more natural fruit or vegetable juice.
12 Notwithstanding any other provisions of this Act, "food
13 for human consumption that is to be consumed off the premises
14 where it is sold" includes all food sold through a vending
15 machine, except soft drinks and food products that are
16 dispensed hot from a vending machine, regardless of the
17 location of the vending machine.
18 If the property that is purchased at retail from a
19 retailer is acquired outside Illinois and used outside
20 Illinois before being brought to Illinois for use here and is
21 taxable under this Act, the "selling price" on which the tax
22 is computed shall be reduced by an amount that represents a
23 reasonable allowance for depreciation for the period of prior
24 out-of-state use.
25 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
26 91-51, eff. 6-30-99.)
27 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
28 Sec. 9. Except as to motor vehicles, watercraft,
29 aircraft, and trailers that are required to be registered
30 with an agency of this State, each retailer required or
31 authorized to collect the tax imposed by this Act shall pay
32 to the Department the amount of such tax (except as otherwise
33 provided) at the time when he is required to file his return
-4- LRB9110257SMdvam06
1 for the period during which such tax was collected, less a
2 discount of 2.1% prior to January 1, 1990, and 1.75% on and
3 after January 1, 1990, or $5 per calendar year, whichever is
4 greater, which is allowed to reimburse the retailer for
5 expenses incurred in collecting the tax, keeping records,
6 preparing and filing returns, remitting the tax and supplying
7 data to the Department on request. In the case of retailers
8 who report and pay the tax on a transaction by transaction
9 basis, as provided in this Section, such discount shall be
10 taken with each such tax remittance instead of when such
11 retailer files his periodic return. A retailer need not
12 remit that part of any tax collected by him to the extent
13 that he is required to remit and does remit the tax imposed
14 by the Retailers' Occupation Tax Act, with respect to the
15 sale of the same property.
16 Where such tangible personal property is sold under a
17 conditional sales contract, or under any other form of sale
18 wherein the payment of the principal sum, or a part thereof,
19 is extended beyond the close of the period for which the
20 return is filed, the retailer, in collecting the tax (except
21 as to motor vehicles, watercraft, aircraft, and trailers that
22 are required to be registered with an agency of this State),
23 may collect for each tax return period, only the tax
24 applicable to that part of the selling price actually
25 received during such tax return period.
26 Except as provided in this Section, on or before the
27 twentieth day of each calendar month, such retailer shall
28 file a return for the preceding calendar month. Such return
29 shall be filed on forms prescribed by the Department and
30 shall furnish such information as the Department may
31 reasonably require.
32 The Department may require returns to be filed on a
33 quarterly basis. If so required, a return for each calendar
34 quarter shall be filed on or before the twentieth day of the
-5- LRB9110257SMdvam06
1 calendar month following the end of such calendar quarter.
2 The taxpayer shall also file a return with the Department for
3 each of the first two months of each calendar quarter, on or
4 before the twentieth day of the following calendar month,
5 stating:
6 1. The name of the seller;
7 2. The address of the principal place of business
8 from which he engages in the business of selling tangible
9 personal property at retail in this State;
10 3. The total amount of taxable receipts received by
11 him during the preceding calendar month from sales of
12 tangible personal property by him during such preceding
13 calendar month, including receipts from charge and time
14 sales, but less all deductions allowed by law;
15 4. The amount of credit provided in Section 2d of
16 this Act;
17 5. The amount of tax due;
18 5-5. The signature of the taxpayer; and
19 6. Such other reasonable information as the
20 Department may require.
21 If a taxpayer fails to sign a return within 30 days after
22 the proper notice and demand for signature by the Department,
23 the return shall be considered valid and any amount shown to
24 be due on the return shall be deemed assessed.
25 Beginning October 1, 1993, a taxpayer who has an average
26 monthly tax liability of $150,000 or more shall make all
27 payments required by rules of the Department by electronic
28 funds transfer. Beginning October 1, 1994, a taxpayer who has
29 an average monthly tax liability of $100,000 or more shall
30 make all payments required by rules of the Department by
31 electronic funds transfer. Beginning October 1, 1995, a
32 taxpayer who has an average monthly tax liability of $50,000
33 or more shall make all payments required by rules of the
34 Department by electronic funds transfer. Beginning October 1,
-6- LRB9110257SMdvam06
1 2000, a taxpayer who has an annual tax liability of $200,000
2 or more shall make all payments required by rules of the
3 Department by electronic funds transfer. The term "annual
4 tax liability" shall be the sum of the taxpayer's liabilities
5 under this Act, and under all other State and local
6 occupation and use tax laws administered by the Department,
7 for the immediately preceding calendar year. The term
8 "average monthly tax liability" means the sum of the
9 taxpayer's liabilities under this Act, and under all other
10 State and local occupation and use tax laws administered by
11 the Department, for the immediately preceding calendar year
12 divided by 12.
13 Before August 1 of each year beginning in 1993, the
14 Department shall notify all taxpayers required to make
15 payments by electronic funds transfer. All taxpayers required
16 to make payments by electronic funds transfer shall make
17 those payments for a minimum of one year beginning on October
18 1.
19 Any taxpayer not required to make payments by electronic
20 funds transfer may make payments by electronic funds transfer
21 with the permission of the Department.
22 All taxpayers required to make payment by electronic
23 funds transfer and any taxpayers authorized to voluntarily
24 make payments by electronic funds transfer shall make those
25 payments in the manner authorized by the Department.
26 The Department shall adopt such rules as are necessary to
27 effectuate a program of electronic funds transfer and the
28 requirements of this Section.
29 Before October 1, 2000, if the taxpayer's average monthly
30 tax liability to the Department under this Act, the
31 Retailers' Occupation Tax Act, the Service Occupation Tax
32 Act, the Service Use Tax Act was $10,000 or more during the
33 preceding 4 complete calendar quarters, he shall file a
34 return with the Department each month by the 20th day of the
-7- LRB9110257SMdvam06
1 month next following the month during which such tax
2 liability is incurred and shall make payments to the
3 Department on or before the 7th, 15th, 22nd and last day of
4 the month during which such liability is incurred. On and
5 after October 1, 2000, if the taxpayer's average monthly tax
6 liability to the Department under this Act, the Retailers'
7 Occupation Tax Act, the Service Occupation Tax Act, and the
8 Service Use Tax Act was $20,000 or more during the preceding
9 4 complete calendar quarters, he shall file a return with the
10 Department each month by the 20th day of the month next
11 following the month during which such tax liability is
12 incurred and shall make payment to the Department on or
13 before the 7th, 15th, 22nd and last day of or the month
14 during which such liability is incurred. If the month during
15 which such tax liability is incurred began prior to January
16 1, 1985, each payment shall be in an amount equal to 1/4 of
17 the taxpayer's actual liability for the month or an amount
18 set by the Department not to exceed 1/4 of the average
19 monthly liability of the taxpayer to the Department for the
20 preceding 4 complete calendar quarters (excluding the month
21 of highest liability and the month of lowest liability in
22 such 4 quarter period). If the month during which such tax
23 liability is incurred begins on or after January 1, 1985, and
24 prior to January 1, 1987, each payment shall be in an amount
25 equal to 22.5% of the taxpayer's actual liability for the
26 month or 27.5% of the taxpayer's liability for the same
27 calendar month of the preceding year. If the month during
28 which such tax liability is incurred begins on or after
29 January 1, 1987, and prior to January 1, 1988, each payment
30 shall be in an amount equal to 22.5% of the taxpayer's actual
31 liability for the month or 26.25% of the taxpayer's liability
32 for the same calendar month of the preceding year. If the
33 month during which such tax liability is incurred begins on
34 or after January 1, 1988, and prior to January 1, 1989, or
-8- LRB9110257SMdvam06
1 begins on or after January 1, 1996, each payment shall be in
2 an amount equal to 22.5% of the taxpayer's actual liability
3 for the month or 25% of the taxpayer's liability for the same
4 calendar month of the preceding year. If the month during
5 which such tax liability is incurred begins on or after
6 January 1, 1989, and prior to January 1, 1996, each payment
7 shall be in an amount equal to 22.5% of the taxpayer's actual
8 liability for the month or 25% of the taxpayer's liability
9 for the same calendar month of the preceding year or 100% of
10 the taxpayer's actual liability for the quarter monthly
11 reporting period. The amount of such quarter monthly
12 payments shall be credited against the final tax liability of
13 the taxpayer's return for that month. Before October 1,
14 2000, once applicable, the requirement of the making of
15 quarter monthly payments to the Department shall continue
16 until such taxpayer's average monthly liability to the
17 Department during the preceding 4 complete calendar quarters
18 (excluding the month of highest liability and the month of
19 lowest liability) is less than $9,000, or until such
20 taxpayer's average monthly liability to the Department as
21 computed for each calendar quarter of the 4 preceding
22 complete calendar quarter period is less than $10,000.
23 However, if a taxpayer can show the Department that a
24 substantial change in the taxpayer's business has occurred
25 which causes the taxpayer to anticipate that his average
26 monthly tax liability for the reasonably foreseeable future
27 will fall below the $10,000 threshold stated above, then such
28 taxpayer may petition the Department for change in such
29 taxpayer's reporting status. On and after October 1, 2000,
30 once applicable, the requirement of the making of quarter
31 monthly payments to the Department shall continue until such
32 taxpayer's average monthly liability to the Department during
33 the preceding 4 complete calendar quarters (excluding the
34 month of highest liability and the month of lowest liability)
-9- LRB9110257SMdvam06
1 is less than $19,000 or until such taxpayer's average monthly
2 liability to the Department as computed for each calendar
3 quarter of the 4 preceding complete calendar quarter period
4 is less than $20,000. However, if a taxpayer can show the
5 Department that a substantial change in the taxpayer's
6 business has occurred which causes the taxpayer to anticipate
7 that his average monthly tax liability for the reasonably
8 foreseeable future will fall below the $20,000 threshold
9 stated above, then such taxpayer may petition the Department
10 for a change in such taxpayer's reporting status. The
11 Department shall change such taxpayer's reporting status
12 unless it finds that such change is seasonal in nature and
13 not likely to be long term. If any such quarter monthly
14 payment is not paid at the time or in the amount required by
15 this Section, then the taxpayer shall be liable for penalties
16 and interest on the difference between the minimum amount due
17 and the amount of such quarter monthly payment actually and
18 timely paid, except insofar as the taxpayer has previously
19 made payments for that month to the Department in excess of
20 the minimum payments previously due as provided in this
21 Section. The Department shall make reasonable rules and
22 regulations to govern the quarter monthly payment amount and
23 quarter monthly payment dates for taxpayers who file on other
24 than a calendar monthly basis.
25 If any such payment provided for in this Section exceeds
26 the taxpayer's liabilities under this Act, the Retailers'
27 Occupation Tax Act, the Service Occupation Tax Act and the
28 Service Use Tax Act, as shown by an original monthly return,
29 the Department shall issue to the taxpayer a credit
30 memorandum no later than 30 days after the date of payment,
31 which memorandum may be submitted by the taxpayer to the
32 Department in payment of tax liability subsequently to be
33 remitted by the taxpayer to the Department or be assigned by
34 the taxpayer to a similar taxpayer under this Act, the
-10- LRB9110257SMdvam06
1 Retailers' Occupation Tax Act, the Service Occupation Tax Act
2 or the Service Use Tax Act, in accordance with reasonable
3 rules and regulations to be prescribed by the Department,
4 except that if such excess payment is shown on an original
5 monthly return and is made after December 31, 1986, no credit
6 memorandum shall be issued, unless requested by the taxpayer.
7 If no such request is made, the taxpayer may credit such
8 excess payment against tax liability subsequently to be
9 remitted by the taxpayer to the Department under this Act,
10 the Retailers' Occupation Tax Act, the Service Occupation Tax
11 Act or the Service Use Tax Act, in accordance with reasonable
12 rules and regulations prescribed by the Department. If the
13 Department subsequently determines that all or any part of
14 the credit taken was not actually due to the taxpayer, the
15 taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
16 by 2.1% or 1.75% of the difference between the credit taken
17 and that actually due, and the taxpayer shall be liable for
18 penalties and interest on such difference.
19 If the retailer is otherwise required to file a monthly
20 return and if the retailer's average monthly tax liability to
21 the Department does not exceed $200, the Department may
22 authorize his returns to be filed on a quarter annual basis,
23 with the return for January, February, and March of a given
24 year being due by April 20 of such year; with the return for
25 April, May and June of a given year being due by July 20 of
26 such year; with the return for July, August and September of
27 a given year being due by October 20 of such year, and with
28 the return for October, November and December of a given year
29 being due by January 20 of the following year.
30 If the retailer is otherwise required to file a monthly
31 or quarterly return and if the retailer's average monthly tax
32 liability to the Department does not exceed $50, the
33 Department may authorize his returns to be filed on an annual
34 basis, with the return for a given year being due by January
-11- LRB9110257SMdvam06
1 20 of the following year.
2 Such quarter annual and annual returns, as to form and
3 substance, shall be subject to the same requirements as
4 monthly returns.
5 Notwithstanding any other provision in this Act
6 concerning the time within which a retailer may file his
7 return, in the case of any retailer who ceases to engage in a
8 kind of business which makes him responsible for filing
9 returns under this Act, such retailer shall file a final
10 return under this Act with the Department not more than one
11 month after discontinuing such business.
12 In addition, with respect to motor vehicles, watercraft,
13 aircraft, and trailers that are required to be registered
14 with an agency of this State, every retailer selling this
15 kind of tangible personal property shall file, with the
16 Department, upon a form to be prescribed and supplied by the
17 Department, a separate return for each such item of tangible
18 personal property which the retailer sells, except that
19 where, in the same transaction, a retailer of aircraft,
20 watercraft, motor vehicles or trailers transfers more than
21 one aircraft, watercraft, motor vehicle or trailer to another
22 aircraft, watercraft, motor vehicle or trailer retailer for
23 the purpose of resale, that seller for resale may report the
24 transfer of all the aircraft, watercraft, motor vehicles or
25 trailers involved in that transaction to the Department on
26 the same uniform invoice-transaction reporting return form.
27 For purposes of this Section, "watercraft" means a Class 2,
28 Class 3, or Class 4 watercraft as defined in Section 3-2 of
29 the Boat Registration and Safety Act, a personal watercraft,
30 or any boat equipped with an inboard motor.
31 The transaction reporting return in the case of motor
32 vehicles or trailers that are required to be registered with
33 an agency of this State, shall be the same document as the
34 Uniform Invoice referred to in Section 5-402 of the Illinois
-12- LRB9110257SMdvam06
1 Vehicle Code and must show the name and address of the
2 seller; the name and address of the purchaser; the amount of
3 the selling price including the amount allowed by the
4 retailer for traded-in property, if any; the amount allowed
5 by the retailer for the traded-in tangible personal property,
6 if any, to the extent to which Section 2 of this Act allows
7 an exemption for the value of traded-in property; the balance
8 payable after deducting such trade-in allowance from the
9 total selling price; the amount of tax due from the retailer
10 with respect to such transaction; the amount of tax collected
11 from the purchaser by the retailer on such transaction (or
12 satisfactory evidence that such tax is not due in that
13 particular instance, if that is claimed to be the fact); the
14 place and date of the sale; a sufficient identification of
15 the property sold; such other information as is required in
16 Section 5-402 of the Illinois Vehicle Code, and such other
17 information as the Department may reasonably require.
18 The transaction reporting return in the case of
19 watercraft and aircraft must show the name and address of the
20 seller; the name and address of the purchaser; the amount of
21 the selling price including the amount allowed by the
22 retailer for traded-in property, if any; the amount allowed
23 by the retailer for the traded-in tangible personal property,
24 if any, to the extent to which Section 2 of this Act allows
25 an exemption for the value of traded-in property; the balance
26 payable after deducting such trade-in allowance from the
27 total selling price; the amount of tax due from the retailer
28 with respect to such transaction; the amount of tax collected
29 from the purchaser by the retailer on such transaction (or
30 satisfactory evidence that such tax is not due in that
31 particular instance, if that is claimed to be the fact); the
32 place and date of the sale, a sufficient identification of
33 the property sold, and such other information as the
34 Department may reasonably require.
-13- LRB9110257SMdvam06
1 Such transaction reporting return shall be filed not
2 later than 20 days after the date of delivery of the item
3 that is being sold, but may be filed by the retailer at any
4 time sooner than that if he chooses to do so. The
5 transaction reporting return and tax remittance or proof of
6 exemption from the tax that is imposed by this Act may be
7 transmitted to the Department by way of the State agency with
8 which, or State officer with whom, the tangible personal
9 property must be titled or registered (if titling or
10 registration is required) if the Department and such agency
11 or State officer determine that this procedure will expedite
12 the processing of applications for title or registration.
13 With each such transaction reporting return, the retailer
14 shall remit the proper amount of tax due (or shall submit
15 satisfactory evidence that the sale is not taxable if that is
16 the case), to the Department or its agents, whereupon the
17 Department shall issue, in the purchaser's name, a tax
18 receipt (or a certificate of exemption if the Department is
19 satisfied that the particular sale is tax exempt) which such
20 purchaser may submit to the agency with which, or State
21 officer with whom, he must title or register the tangible
22 personal property that is involved (if titling or
23 registration is required) in support of such purchaser's
24 application for an Illinois certificate or other evidence of
25 title or registration to such tangible personal property.
26 No retailer's failure or refusal to remit tax under this
27 Act precludes a user, who has paid the proper tax to the
28 retailer, from obtaining his certificate of title or other
29 evidence of title or registration (if titling or registration
30 is required) upon satisfying the Department that such user
31 has paid the proper tax (if tax is due) to the retailer. The
32 Department shall adopt appropriate rules to carry out the
33 mandate of this paragraph.
34 If the user who would otherwise pay tax to the retailer
-14- LRB9110257SMdvam06
1 wants the transaction reporting return filed and the payment
2 of tax or proof of exemption made to the Department before
3 the retailer is willing to take these actions and such user
4 has not paid the tax to the retailer, such user may certify
5 to the fact of such delay by the retailer, and may (upon the
6 Department being satisfied of the truth of such
7 certification) transmit the information required by the
8 transaction reporting return and the remittance for tax or
9 proof of exemption directly to the Department and obtain his
10 tax receipt or exemption determination, in which event the
11 transaction reporting return and tax remittance (if a tax
12 payment was required) shall be credited by the Department to
13 the proper retailer's account with the Department, but
14 without the 2.1% or 1.75% discount provided for in this
15 Section being allowed. When the user pays the tax directly
16 to the Department, he shall pay the tax in the same amount
17 and in the same form in which it would be remitted if the tax
18 had been remitted to the Department by the retailer.
19 Where a retailer collects the tax with respect to the
20 selling price of tangible personal property which he sells
21 and the purchaser thereafter returns such tangible personal
22 property and the retailer refunds the selling price thereof
23 to the purchaser, such retailer shall also refund, to the
24 purchaser, the tax so collected from the purchaser. When
25 filing his return for the period in which he refunds such tax
26 to the purchaser, the retailer may deduct the amount of the
27 tax so refunded by him to the purchaser from any other use
28 tax which such retailer may be required to pay or remit to
29 the Department, as shown by such return, if the amount of the
30 tax to be deducted was previously remitted to the Department
31 by such retailer. If the retailer has not previously
32 remitted the amount of such tax to the Department, he is
33 entitled to no deduction under this Act upon refunding such
34 tax to the purchaser.
-15- LRB9110257SMdvam06
1 Any retailer filing a return under this Section shall
2 also include (for the purpose of paying tax thereon) the
3 total tax covered by such return upon the selling price of
4 tangible personal property purchased by him at retail from a
5 retailer, but as to which the tax imposed by this Act was not
6 collected from the retailer filing such return, and such
7 retailer shall remit the amount of such tax to the Department
8 when filing such return.
9 If experience indicates such action to be practicable,
10 the Department may prescribe and furnish a combination or
11 joint return which will enable retailers, who are required to
12 file returns hereunder and also under the Retailers'
13 Occupation Tax Act, to furnish all the return information
14 required by both Acts on the one form.
15 Where the retailer has more than one business registered
16 with the Department under separate registration under this
17 Act, such retailer may not file each return that is due as a
18 single return covering all such registered businesses, but
19 shall file separate returns for each such registered
20 business.
21 Beginning January 1, 1990, each month the Department
22 shall pay into the State and Local Sales Tax Reform Fund, a
23 special fund in the State Treasury which is hereby created,
24 the net revenue realized for the preceding month from the 1%
25 tax on sales of food for human consumption which is to be
26 consumed off the premises where it is sold (other than
27 alcoholic beverages, soft drinks and food which has been
28 prepared for immediate consumption) and prescription and
29 nonprescription medicines, drugs, medical appliances and
30 insulin, urine testing materials, syringes and needles used
31 by diabetics.
32 Beginning January 1, 1990, each month the Department
33 shall pay into the County and Mass Transit District Fund 4%
34 of the net revenue realized for the preceding month from the
-16- LRB9110257SMdvam06
1 6.25% general rate on the selling price of tangible personal
2 property which is purchased outside Illinois at retail from a
3 retailer and which is titled or registered by an agency of
4 this State's government.
5 Beginning January 1, 1990, each month the Department
6 shall pay into the State and Local Sales Tax Reform Fund, a
7 special fund in the State Treasury, 20% of the net revenue
8 realized for the preceding month from the 6.25% general rate
9 on the selling price of tangible personal property, other
10 than tangible personal property which is purchased outside
11 Illinois at retail from a retailer and which is titled or
12 registered by an agency of this State's government.
13 Beginning November 1, 2000, and so long as the rate
14 remains at 1.25%, each month the Department shall pay into
15 the County and Mass Transit District Fund 20% of the net
16 revenue realized for the preceding month from the 1.25% rate
17 on the selling price of motor fuel and gasohol.
18 Beginning January 1, 1990, each month the Department
19 shall pay into the Local Government Tax Fund 16% of the net
20 revenue realized for the preceding month from the 6.25%
21 general rate on the selling price of tangible personal
22 property which is purchased outside Illinois at retail from a
23 retailer and which is titled or registered by an agency of
24 this State's government.
25 Beginning November 1, 2000, and so long as the rate
26 remains at 1.25%, each month the Department shall pay into
27 the Local Government Tax Fund 80% of the net revenue realized
28 for the preceding month from the 1.25% rate on the selling
29 price of motor fuel and gasohol.
30 Of the remainder of the moneys received by the Department
31 pursuant to this Act, (a) 1.75% thereof shall be paid into
32 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
33 and on and after July 1, 1989, 3.8% thereof shall be paid
34 into the Build Illinois Fund; provided, however, that if in
-17- LRB9110257SMdvam06
1 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
2 as the case may be, of the moneys received by the Department
3 and required to be paid into the Build Illinois Fund pursuant
4 to Section 3 of the Retailers' Occupation Tax Act, Section 9
5 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
6 Section 9 of the Service Occupation Tax Act, such Acts being
7 hereinafter called the "Tax Acts" and such aggregate of 2.2%
8 or 3.8%, as the case may be, of moneys being hereinafter
9 called the "Tax Act Amount", and (2) the amount transferred
10 to the Build Illinois Fund from the State and Local Sales Tax
11 Reform Fund shall be less than the Annual Specified Amount
12 (as defined in Section 3 of the Retailers' Occupation Tax
13 Act), an amount equal to the difference shall be immediately
14 paid into the Build Illinois Fund from other moneys received
15 by the Department pursuant to the Tax Acts; and further
16 provided, that if on the last business day of any month the
17 sum of (1) the Tax Act Amount required to be deposited into
18 the Build Illinois Bond Account in the Build Illinois Fund
19 during such month and (2) the amount transferred during such
20 month to the Build Illinois Fund from the State and Local
21 Sales Tax Reform Fund shall have been less than 1/12 of the
22 Annual Specified Amount, an amount equal to the difference
23 shall be immediately paid into the Build Illinois Fund from
24 other moneys received by the Department pursuant to the Tax
25 Acts; and, further provided, that in no event shall the
26 payments required under the preceding proviso result in
27 aggregate payments into the Build Illinois Fund pursuant to
28 this clause (b) for any fiscal year in excess of the greater
29 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
30 for such fiscal year; and, further provided, that the amounts
31 payable into the Build Illinois Fund under this clause (b)
32 shall be payable only until such time as the aggregate amount
33 on deposit under each trust indenture securing Bonds issued
34 and outstanding pursuant to the Build Illinois Bond Act is
-18- LRB9110257SMdvam06
1 sufficient, taking into account any future investment income,
2 to fully provide, in accordance with such indenture, for the
3 defeasance of or the payment of the principal of, premium, if
4 any, and interest on the Bonds secured by such indenture and
5 on any Bonds expected to be issued thereafter and all fees
6 and costs payable with respect thereto, all as certified by
7 the Director of the Bureau of the Budget. If on the last
8 business day of any month in which Bonds are outstanding
9 pursuant to the Build Illinois Bond Act, the aggregate of the
10 moneys deposited in the Build Illinois Bond Account in the
11 Build Illinois Fund in such month shall be less than the
12 amount required to be transferred in such month from the
13 Build Illinois Bond Account to the Build Illinois Bond
14 Retirement and Interest Fund pursuant to Section 13 of the
15 Build Illinois Bond Act, an amount equal to such deficiency
16 shall be immediately paid from other moneys received by the
17 Department pursuant to the Tax Acts to the Build Illinois
18 Fund; provided, however, that any amounts paid to the Build
19 Illinois Fund in any fiscal year pursuant to this sentence
20 shall be deemed to constitute payments pursuant to clause (b)
21 of the preceding sentence and shall reduce the amount
22 otherwise payable for such fiscal year pursuant to clause (b)
23 of the preceding sentence. The moneys received by the
24 Department pursuant to this Act and required to be deposited
25 into the Build Illinois Fund are subject to the pledge, claim
26 and charge set forth in Section 12 of the Build Illinois Bond
27 Act.
28 Subject to payment of amounts into the Build Illinois
29 Fund as provided in the preceding paragraph or in any
30 amendment thereto hereafter enacted, the following specified
31 monthly installment of the amount requested in the
32 certificate of the Chairman of the Metropolitan Pier and
33 Exposition Authority provided under Section 8.25f of the
34 State Finance Act, but not in excess of the sums designated
-19- LRB9110257SMdvam06
1 as "Total Deposit", shall be deposited in the aggregate from
2 collections under Section 9 of the Use Tax Act, Section 9 of
3 the Service Use Tax Act, Section 9 of the Service Occupation
4 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
5 into the McCormick Place Expansion Project Fund in the
6 specified fiscal years.
7 Fiscal Year Total Deposit
8 1993 $0
9 1994 53,000,000
10 1995 58,000,000
11 1996 61,000,000
12 1997 64,000,000
13 1998 68,000,000
14 1999 71,000,000
15 2000 75,000,000
16 2001 80,000,000
17 2002 84,000,000
18 2003 89,000,000
19 2004 93,000,000
20 2005 97,000,000
21 2006 102,000,000
22 2007 108,000,000
23 2008 115,000,000
24 2009 120,000,000
25 2010 126,000,000
26 2011 132,000,000
27 2012 138,000,000
28 2013 and 145,000,000
29 each fiscal year
30 thereafter that bonds
31 are outstanding under
32 Section 13.2 of the
33 Metropolitan Pier and
34 Exposition Authority
-20- LRB9110257SMdvam06
1 Act, but not after fiscal year 2029.
2 Beginning July 20, 1993 and in each month of each fiscal
3 year thereafter, one-eighth of the amount requested in the
4 certificate of the Chairman of the Metropolitan Pier and
5 Exposition Authority for that fiscal year, less the amount
6 deposited into the McCormick Place Expansion Project Fund by
7 the State Treasurer in the respective month under subsection
8 (g) of Section 13 of the Metropolitan Pier and Exposition
9 Authority Act, plus cumulative deficiencies in the deposits
10 required under this Section for previous months and years,
11 shall be deposited into the McCormick Place Expansion Project
12 Fund, until the full amount requested for the fiscal year,
13 but not in excess of the amount specified above as "Total
14 Deposit", has been deposited.
15 Subject to payment of amounts into the Build Illinois
16 Fund and the McCormick Place Expansion Project Fund pursuant
17 to the preceding paragraphs or in any amendment thereto
18 hereafter enacted, each month the Department shall pay into
19 the Local Government Distributive Fund .4% of the net revenue
20 realized for the preceding month from the 5% general rate, or
21 .4% of 80% of the net revenue realized for the preceding
22 month from the 6.25% general rate, as the case may be, on the
23 selling price of tangible personal property which amount
24 shall, subject to appropriation, be distributed as provided
25 in Section 2 of the State Revenue Sharing Act. No payments or
26 distributions pursuant to this paragraph shall be made if the
27 tax imposed by this Act on photoprocessing products is
28 declared unconstitutional, or if the proceeds from such tax
29 are unavailable for distribution because of litigation.
30 Subject to payment of amounts into the Build Illinois
31 Fund, the McCormick Place Expansion Project Fund, and the
32 Local Government Distributive Fund pursuant to the preceding
33 paragraphs or in any amendments thereto hereafter enacted,
34 beginning July 1, 1993, the Department shall each month pay
-21- LRB9110257SMdvam06
1 into the Illinois Tax Increment Fund 0.27% of 80% of the net
2 revenue realized for the preceding month from the 6.25%
3 general rate on the selling price of tangible personal
4 property.
5 Of the remainder of the moneys received by the Department
6 pursuant to this Act, 75% thereof shall be paid into the
7 State Treasury and 25% shall be reserved in a special account
8 and used only for the transfer to the Common School Fund as
9 part of the monthly transfer from the General Revenue Fund in
10 accordance with Section 8a of the State Finance Act.
11 As soon as possible after the first day of each month,
12 upon certification of the Department of Revenue, the
13 Comptroller shall order transferred and the Treasurer shall
14 transfer from the General Revenue Fund to the Motor Fuel Tax
15 Fund an amount equal to 1.7% of 80% of the net revenue
16 realized under this Act for the second preceding month.
17 Beginning April 1, 2000, this transfer is no longer required
18 and shall not be made.
19 Net revenue realized for a month shall be the revenue
20 collected by the State pursuant to this Act, less the amount
21 paid out during that month as refunds to taxpayers for
22 overpayment of liability.
23 For greater simplicity of administration, manufacturers,
24 importers and wholesalers whose products are sold at retail
25 in Illinois by numerous retailers, and who wish to do so, may
26 assume the responsibility for accounting and paying to the
27 Department all tax accruing under this Act with respect to
28 such sales, if the retailers who are affected do not make
29 written objection to the Department to this arrangement.
30 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98;
31 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff.
32 7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)
33 Section 10. The Service Use Tax Act is amended by
-22- LRB9110257SMdvam06
1 changing Sections 3-10 and 9 as follows:
2 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
3 Sec. 3-10. Rate of tax. Unless otherwise provided in
4 this Section, the tax imposed by this Act is at the rate of
5 6.25% of the selling price of tangible personal property
6 transferred as an incident to the sale of service, but, for
7 the purpose of computing this tax, in no event shall the
8 selling price be less than the cost price of the property to
9 the serviceman.
10 With respect to motor fuel, as defined in Section 1.1 of
11 the Motor Fuel Tax Law, and gasohol, as defined in Section
12 3-40 of the Use Tax Act, the tax is imposed at the rate of
13 1.25%. If, however, the aggregate tax revenues from motor
14 fuel and gasohol under the Motor Fuel Tax Law during the
15 period from October 1, 2002 through September 30, 2003 are
16 not at least 15% more than the aggregate tax revenues from
17 motor fuel and gasohol under that Law during the period from
18 October 1, 1999 through September 30, 2000, then beginning
19 January 1, 2004 the tax is imposed on motor fuel and gasohol
20 at the 6.25% general rate.
21 With respect to gasohol, as defined in the Use Tax Act,
22 the tax imposed by this Act applies to 70% of the selling
23 price of property transferred as an incident to the sale of
24 service on or after January 1, 1990, and before July 1, 2003,
25 and to 100% of the selling price thereafter.
26 At the election of any registered serviceman made for
27 each fiscal year, sales of service in which the aggregate
28 annual cost price of tangible personal property transferred
29 as an incident to the sales of service is less than 35%, or
30 75% in the case of servicemen transferring prescription drugs
31 or servicemen engaged in graphic arts production, of the
32 aggregate annual total gross receipts from all sales of
33 service, the tax imposed by this Act shall be based on the
-23- LRB9110257SMdvam06
1 serviceman's cost price of the tangible personal property
2 transferred as an incident to the sale of those services.
3 The tax shall be imposed at the rate of 1% on food
4 prepared for immediate consumption and transferred incident
5 to a sale of service subject to this Act or the Service
6 Occupation Tax Act by an entity licensed under the Hospital
7 Licensing Act, the Nursing Home Care Act, or the Child Care
8 Act of 1969. The tax shall also be imposed at the rate of 1%
9 on 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 that has been prepared for immediate
12 consumption and is not otherwise included in this paragraph)
13 and prescription and nonprescription medicines, drugs,
14 medical appliances, modifications to a motor vehicle for the
15 purpose of rendering it usable by a disabled person, and
16 insulin, urine testing materials, syringes, and needles used
17 by diabetics, for human use. For the purposes of this
18 Section, the term "soft drinks" means any complete, finished,
19 ready-to-use, non-alcoholic drink, whether carbonated or not,
20 including but not limited to soda water, cola, fruit juice,
21 vegetable juice, carbonated water, and all other preparations
22 commonly known as soft drinks of whatever kind or description
23 that are contained in any closed or sealed bottle, can,
24 carton, or container, regardless of size. "Soft drinks" does
25 not include coffee, tea, non-carbonated water, infant
26 formula, milk or milk products as defined in the Grade A
27 Pasteurized Milk and Milk Products Act, or drinks containing
28 50% or more natural fruit or vegetable juice.
29 Notwithstanding any other provisions of this Act, "food
30 for human consumption that is to be consumed off the premises
31 where it is sold" includes all food sold through a vending
32 machine, except soft drinks and food products that are
33 dispensed hot from a vending machine, regardless of the
34 location of the vending machine.
-24- LRB9110257SMdvam06
1 If the property that is acquired from a serviceman is
2 acquired outside Illinois and used outside Illinois before
3 being brought to Illinois for use here and is taxable under
4 this Act, the "selling price" on which the tax is computed
5 shall be reduced by an amount that represents a reasonable
6 allowance for depreciation for the period of prior
7 out-of-state use.
8 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
9 91-51, eff. 6-30-99; 91-541, eff. 8-13-99.)
10 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
11 Sec. 9. Each serviceman required or authorized to
12 collect the tax herein imposed shall pay to the Department
13 the amount of such tax (except as otherwise provided) at the
14 time when he is required to file his return for the period
15 during which such tax was collected, less a discount of 2.1%
16 prior to January 1, 1990 and 1.75% on and after January 1,
17 1990, or $5 per calendar year, whichever is greater, which is
18 allowed to reimburse the serviceman for expenses incurred in
19 collecting the tax, keeping records, preparing and filing
20 returns, remitting the tax and supplying data to the
21 Department on request. A serviceman need not remit that part
22 of any tax collected by him to the extent that he is required
23 to pay and does pay the tax imposed by the Service Occupation
24 Tax Act with respect to his sale of service involving the
25 incidental transfer by him of the same property.
26 Except as provided hereinafter in this Section, on or
27 before the twentieth day of each calendar month, such
28 serviceman shall file a return for the preceding calendar
29 month in accordance with reasonable Rules and Regulations to
30 be promulgated by the Department. Such return shall be filed
31 on a form prescribed by the Department and shall contain such
32 information as the Department may reasonably require.
33 The Department may require returns to be filed on a
-25- LRB9110257SMdvam06
1 quarterly basis. If so required, a return for each calendar
2 quarter shall be filed on or before the twentieth day of the
3 calendar month following the end of such calendar quarter.
4 The taxpayer shall also file a return with the Department for
5 each of the first two months of each calendar quarter, on or
6 before the twentieth day of the following calendar month,
7 stating:
8 1. The name of the seller;
9 2. The address of the principal place of business
10 from which he engages in business as a serviceman in this
11 State;
12 3. The total amount of taxable receipts received by
13 him during the preceding calendar month, including
14 receipts from charge and time sales, but less all
15 deductions allowed by law;
16 4. The amount of credit provided in Section 2d of
17 this Act;
18 5. The amount of tax due;
19 5-5. The signature of the taxpayer; and
20 6. Such other reasonable information as the
21 Department may require.
22 If a taxpayer fails to sign a return within 30 days after
23 the proper notice and demand for signature by the Department,
24 the return shall be considered valid and any amount shown to
25 be due on the return shall be deemed assessed.
26 Beginning October 1, 1993, a taxpayer who has an average
27 monthly tax liability of $150,000 or more shall make all
28 payments required by rules of the Department by electronic
29 funds transfer. Beginning October 1, 1994, a taxpayer who
30 has an average monthly tax liability of $100,000 or more
31 shall make all payments required by rules of the Department
32 by electronic funds transfer. Beginning October 1, 1995, a
33 taxpayer who has an average monthly tax liability of $50,000
34 or more shall make all payments required by rules of the
-26- LRB9110257SMdvam06
1 Department by electronic funds transfer. Beginning October 1,
2 2000, a taxpayer who has an annual tax liability of $200,000
3 or more shall make all payments required by rules of the
4 Department by electronic funds transfer. The term "annual
5 tax liability" shall be the sum of the taxpayer's liabilities
6 under this Act, and under all other State and local
7 occupation and use tax laws administered by the Department,
8 for the immediately preceding calendar year. The term
9 "average monthly tax liability" means the sum of the
10 taxpayer's liabilities under this Act, and under all other
11 State and local occupation and use tax laws administered by
12 the Department, for the immediately preceding calendar year
13 divided by 12.
14 Before August 1 of each year beginning in 1993, the
15 Department shall notify all taxpayers required to make
16 payments by electronic funds transfer. All taxpayers required
17 to make payments by electronic funds transfer shall make
18 those payments for a minimum of one year beginning on October
19 1.
20 Any taxpayer not required to make payments by electronic
21 funds transfer may make payments by electronic funds transfer
22 with the permission of the Department.
23 All taxpayers required to make payment by electronic
24 funds transfer and any taxpayers authorized to voluntarily
25 make payments by electronic funds transfer shall make those
26 payments in the manner authorized by the Department.
27 The Department shall adopt such rules as are necessary to
28 effectuate a program of electronic funds transfer and the
29 requirements of this Section.
30 If the serviceman is otherwise required to file a monthly
31 return and if the serviceman's average monthly tax liability
32 to the Department does not exceed $200, the Department may
33 authorize his returns to be filed on a quarter annual basis,
34 with the return for January, February and March of a given
-27- LRB9110257SMdvam06
1 year being due by April 20 of such year; with the return for
2 April, May and June of a given year being due by July 20 of
3 such year; with the return for July, August and September of
4 a given year being due by October 20 of such year, and with
5 the return for October, November and December of a given year
6 being due by January 20 of the following year.
7 If the serviceman is otherwise required to file a monthly
8 or quarterly return and if the serviceman's average monthly
9 tax liability to the Department does not exceed $50, the
10 Department may authorize his returns to be filed on an annual
11 basis, with the return for a given year being due by January
12 20 of the following year.
13 Such quarter annual and annual returns, as to form and
14 substance, shall be subject to the same requirements as
15 monthly returns.
16 Notwithstanding any other provision in this Act
17 concerning the time within which a serviceman may file his
18 return, in the case of any serviceman who ceases to engage in
19 a kind of business which makes him responsible for filing
20 returns under this Act, such serviceman shall file a final
21 return under this Act with the Department not more than 1
22 month after discontinuing such business.
23 Where a serviceman collects the tax with respect to the
24 selling price of property which he sells and the purchaser
25 thereafter returns such property and the serviceman refunds
26 the selling price thereof to the purchaser, such serviceman
27 shall also refund, to the purchaser, the tax so collected
28 from the purchaser. When filing his return for the period in
29 which he refunds such tax to the purchaser, the serviceman
30 may deduct the amount of the tax so refunded by him to the
31 purchaser from any other Service Use Tax, Service Occupation
32 Tax, retailers' occupation tax or use tax which such
33 serviceman may be required to pay or remit to the Department,
34 as shown by such return, provided that the amount of the tax
-28- LRB9110257SMdvam06
1 to be deducted shall previously have been remitted to the
2 Department by such serviceman. If the serviceman shall not
3 previously have remitted the amount of such tax to the
4 Department, he shall be entitled to no deduction hereunder
5 upon refunding such tax to the purchaser.
6 Any serviceman filing a return hereunder shall also
7 include the total tax upon the selling price of tangible
8 personal property purchased for use by him as an incident to
9 a sale of service, and such serviceman shall remit the amount
10 of such tax to the Department when filing such return.
11 If experience indicates such action to be practicable,
12 the Department may prescribe and furnish a combination or
13 joint return which will enable servicemen, who are required
14 to file returns hereunder and also under the Service
15 Occupation Tax Act, to furnish all the return information
16 required by both Acts on the one form.
17 Where the serviceman has more than one business
18 registered with the Department under separate registration
19 hereunder, such serviceman shall not file each return that is
20 due as a single return covering all such registered
21 businesses, but shall file separate returns for each such
22 registered business.
23 Beginning January 1, 1990, each month the Department
24 shall pay into the State and Local Tax Reform Fund, a special
25 fund in the State Treasury, the net revenue realized for the
26 preceding month from the 1% tax on sales of food for human
27 consumption which is to be consumed off the premises where it
28 is sold (other than alcoholic beverages, soft drinks and food
29 which has been prepared for immediate consumption) and
30 prescription and nonprescription medicines, drugs, medical
31 appliances and insulin, urine testing materials, syringes and
32 needles used by diabetics.
33 Beginning November 1, 2000, and so long as the rate
34 remains at 1.25%, each month the Department shall pay into
-29- LRB9110257SMdvam06
1 the County and Mass Transit District Fund 20% of the net
2 revenue realized for the preceding month from the 1.25% rate
3 on the selling price of motor fuel and gasohol.
4 Beginning January 1, 1990, each month the Department
5 shall pay into the State and Local Sales Tax Reform Fund 20%
6 of the net revenue realized for the preceding month from the
7 6.25% general rate on transfers of tangible personal
8 property, other than tangible personal property which is
9 purchased outside Illinois at retail from a retailer and
10 which is titled or registered by an agency of this State's
11 government.
12 Beginning November 1, 2000, and so long as the rate
13 remains at 1.25%, each month the Department shall pay into
14 the Local Government Tax Fund 80% of the net revenue realized
15 for the preceding month from the 1.25% rate on the selling
16 price of motor fuel and gasohol.
17 Of the remainder of the moneys received by the Department
18 pursuant to this Act, (a) 1.75% thereof shall be paid into
19 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
20 and on and after July 1, 1989, 3.8% thereof shall be paid
21 into the Build Illinois Fund; provided, however, that if in
22 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
23 as the case may be, of the moneys received by the Department
24 and required to be paid into the Build Illinois Fund pursuant
25 to Section 3 of the Retailers' Occupation Tax Act, Section 9
26 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
27 Section 9 of the Service Occupation Tax Act, such Acts being
28 hereinafter called the "Tax Acts" and such aggregate of 2.2%
29 or 3.8%, as the case may be, of moneys being hereinafter
30 called the "Tax Act Amount", and (2) the amount transferred
31 to the Build Illinois Fund from the State and Local Sales Tax
32 Reform Fund shall be less than the Annual Specified Amount
33 (as defined in Section 3 of the Retailers' Occupation Tax
34 Act), an amount equal to the difference shall be immediately
-30- LRB9110257SMdvam06
1 paid into the Build Illinois Fund from other moneys received
2 by the Department pursuant to the Tax Acts; and further
3 provided, that if on the last business day of any month the
4 sum of (1) the Tax Act Amount required to be deposited into
5 the Build Illinois Bond Account in the Build Illinois Fund
6 during such month and (2) the amount transferred during such
7 month to the Build Illinois Fund from the State and Local
8 Sales Tax Reform Fund shall have been less than 1/12 of the
9 Annual Specified Amount, an amount equal to the difference
10 shall be immediately paid into the Build Illinois Fund from
11 other moneys received by the Department pursuant to the Tax
12 Acts; and, further provided, that in no event shall the
13 payments required under the preceding proviso result in
14 aggregate payments into the Build Illinois Fund pursuant to
15 this clause (b) for any fiscal year in excess of the greater
16 of (i) the Tax Act Amount or (ii) the Annual Specified Amount
17 for such fiscal year; and, further provided, that the amounts
18 payable into the Build Illinois Fund under this clause (b)
19 shall be payable only until such time as the aggregate amount
20 on deposit under each trust indenture securing Bonds issued
21 and outstanding pursuant to the Build Illinois Bond Act is
22 sufficient, taking into account any future investment income,
23 to fully provide, in accordance with such indenture, for the
24 defeasance of or the payment of the principal of, premium, if
25 any, and interest on the Bonds secured by such indenture and
26 on any Bonds expected to be issued thereafter and all fees
27 and costs payable with respect thereto, all as certified by
28 the Director of the Bureau of the Budget. If on the last
29 business day of any month in which Bonds are outstanding
30 pursuant to the Build Illinois Bond Act, the aggregate of the
31 moneys deposited in the Build Illinois Bond Account in the
32 Build Illinois Fund in such month shall be less than the
33 amount required to be transferred in such month from the
34 Build Illinois Bond Account to the Build Illinois Bond
-31- LRB9110257SMdvam06
1 Retirement and Interest Fund pursuant to Section 13 of the
2 Build Illinois Bond Act, an amount equal to such deficiency
3 shall be immediately paid from other moneys received by the
4 Department pursuant to the Tax Acts to the Build Illinois
5 Fund; provided, however, that any amounts paid to the Build
6 Illinois Fund in any fiscal year pursuant to this sentence
7 shall be deemed to constitute payments pursuant to clause (b)
8 of the preceding sentence and shall reduce the amount
9 otherwise payable for such fiscal year pursuant to clause (b)
10 of the preceding sentence. The moneys received by the
11 Department pursuant to this Act and required to be deposited
12 into the Build Illinois Fund are subject to the pledge, claim
13 and charge set forth in Section 12 of the Build Illinois Bond
14 Act.
15 Subject to payment of amounts into the Build Illinois
16 Fund as provided in the preceding paragraph or in any
17 amendment thereto hereafter enacted, the following specified
18 monthly installment of the amount requested in the
19 certificate of the Chairman of the Metropolitan Pier and
20 Exposition Authority provided under Section 8.25f of the
21 State Finance Act, but not in excess of the sums designated
22 as "Total Deposit", shall be deposited in the aggregate from
23 collections under Section 9 of the Use Tax Act, Section 9 of
24 the Service Use Tax Act, Section 9 of the Service Occupation
25 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
26 into the McCormick Place Expansion Project Fund in the
27 specified fiscal years.
28 Fiscal Year Total Deposit
29 1993 $0
30 1994 53,000,000
31 1995 58,000,000
32 1996 61,000,000
33 1997 64,000,000
34 1998 68,000,000
-32- LRB9110257SMdvam06
1 1999 71,000,000
2 2000 75,000,000
3 2001 80,000,000
4 2002 84,000,000
5 2003 89,000,000
6 2004 93,000,000
7 2005 97,000,000
8 2006 102,000,000
9 2007 108,000,000
10 2008 115,000,000
11 2009 120,000,000
12 2010 126,000,000
13 2011 132,000,000
14 2012 138,000,000
15 2013 and 145,000,000
16 each fiscal year
17 thereafter that bonds
18 are outstanding under
19 Section 13.2 of the
20 Metropolitan Pier and
21 Exposition Authority Act,
22 but not after fiscal year 2029.
23 Beginning July 20, 1993 and in each month of each fiscal
24 year thereafter, one-eighth of the amount requested in the
25 certificate of the Chairman of the Metropolitan Pier and
26 Exposition Authority for that fiscal year, less the amount
27 deposited into the McCormick Place Expansion Project Fund by
28 the State Treasurer in the respective month under subsection
29 (g) of Section 13 of the Metropolitan Pier and Exposition
30 Authority Act, plus cumulative deficiencies in the deposits
31 required under this Section for previous months and years,
32 shall be deposited into the McCormick Place Expansion Project
33 Fund, until the full amount requested for the fiscal year,
34 but not in excess of the amount specified above as "Total
-33- LRB9110257SMdvam06
1 Deposit", has been deposited.
2 Subject to payment of amounts into the Build Illinois
3 Fund and the McCormick Place Expansion Project Fund pursuant
4 to the preceding paragraphs or in any amendment thereto
5 hereafter enacted, each month the Department shall pay into
6 the Local Government Distributive Fund 0.4% of the net
7 revenue realized for the preceding month from the 5% general
8 rate or 0.4% of 80% of the net revenue realized for the
9 preceding month from the 6.25% general rate, as the case may
10 be, on the selling price of tangible personal property which
11 amount shall, subject to appropriation, be distributed as
12 provided in Section 2 of the State Revenue Sharing Act. No
13 payments or distributions pursuant to this paragraph shall be
14 made if the tax imposed by this Act on photo processing
15 products is declared unconstitutional, or if the proceeds
16 from such tax are unavailable for distribution because of
17 litigation.
18 Subject to payment of amounts into the Build Illinois
19 Fund, the McCormick Place Expansion Project Fund, and the
20 Local Government Distributive Fund pursuant to the preceding
21 paragraphs or in any amendments thereto hereafter enacted,
22 beginning July 1, 1993, the Department shall each month pay
23 into the Illinois Tax Increment Fund 0.27% of 80% of the net
24 revenue realized for the preceding month from the 6.25%
25 general rate on the selling price of tangible personal
26 property.
27 All remaining moneys received by the Department pursuant
28 to this Act shall be paid into the General Revenue Fund of
29 the State Treasury.
30 As soon as possible after the first day of each month,
31 upon certification of the Department of Revenue, the
32 Comptroller shall order transferred and the Treasurer shall
33 transfer from the General Revenue Fund to the Motor Fuel Tax
34 Fund an amount equal to 1.7% of 80% of the net revenue
-34- LRB9110257SMdvam06
1 realized under this Act for the second preceding month.
2 Beginning April 1, 2000, this transfer is no longer required
3 and shall not be made.
4 Net revenue realized for a month shall be the revenue
5 collected by the State pursuant to this Act, less the amount
6 paid out during that month as refunds to taxpayers for
7 overpayment of liability.
8 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
9 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99;
10 revised 9-27-99.)
11 Section 15. The Service Occupation Tax Act is amended by
12 changing Sections 3-10 and 9 as follows:
13 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
14 Sec. 3-10. Rate of tax. Unless otherwise provided in
15 this Section, the tax imposed by this Act is at the rate of
16 6.25% of the "selling price", as defined in Section 2 of the
17 Service Use Tax Act, of the tangible personal property. For
18 the purpose of computing this tax, in no event shall the
19 "selling price" be less than the cost price to the serviceman
20 of the tangible personal property transferred. The selling
21 price of each item of tangible personal property transferred
22 as an incident of a sale of service may be shown as a
23 distinct and separate item on the serviceman's billing to the
24 service customer. If the selling price is not so shown, the
25 selling price of the tangible personal property is deemed to
26 be 50% of the serviceman's entire billing to the service
27 customer. When, however, a serviceman contracts to design,
28 develop, and produce special order machinery or equipment,
29 the tax imposed by this Act shall be based on the
30 serviceman's cost price of the tangible personal property
31 transferred incident to the completion of the contract.
32 With respect to motor fuel, as defined in Section 1.1 of
-35- LRB9110257SMdvam06
1 the Motor Fuel Tax Law, and gasohol, as defined in Section
2 3-40 of the Use Tax Act, the tax is imposed at the rate of
3 1.25%. If, however, the aggregate tax revenues from motor
4 fuel and gasohol under the Motor Fuel Tax Law during the
5 period from October 1, 2002 through September 30, 2003 are
6 not at least 15% more than the aggregate tax revenues from
7 motor fuel and gasohol under that Law during the period from
8 October 1, 1999 through September 30, 2000, then beginning
9 January 1, 2004 the tax is imposed on motor fuel and gasohol
10 at the 6.25% general rate.
11 With respect to gasohol, as defined in the Use Tax Act,
12 the tax imposed by this Act shall apply to 70% of the cost
13 price of property transferred as an incident to the sale of
14 service on or after January 1, 1990, and before July 1, 2003,
15 and to 100% of the cost price thereafter.
16 At the election of any registered serviceman made for
17 each fiscal year, sales of service in which the aggregate
18 annual cost price of tangible personal property transferred
19 as an incident to the sales of service is less than 35%, or
20 75% in the case of servicemen transferring prescription drugs
21 or servicemen engaged in graphic arts production, of the
22 aggregate annual total gross receipts from all sales of
23 service, the tax imposed by this Act shall be based on the
24 serviceman's cost price of the tangible personal property
25 transferred incident to the sale of those services.
26 The tax shall be imposed at the rate of 1% on food
27 prepared for immediate consumption and transferred incident
28 to a sale of service subject to this Act or the Service
29 Occupation Tax Act by an entity licensed under the Hospital
30 Licensing Act, the Nursing Home Care Act, or the Child Care
31 Act of 1969. The tax shall also be imposed at the rate of 1%
32 on food for human consumption that is to be consumed off the
33 premises where it is sold (other than alcoholic beverages,
34 soft drinks, and food that has been prepared for immediate
-36- LRB9110257SMdvam06
1 consumption and is not otherwise included in this paragraph)
2 and prescription and nonprescription medicines, drugs,
3 medical appliances, modifications to a motor vehicle for the
4 purpose of rendering it usable by a disabled person, and
5 insulin, urine testing materials, syringes, and needles used
6 by diabetics, for human use. For the purposes of this
7 Section, the term "soft drinks" means any complete, finished,
8 ready-to-use, non-alcoholic drink, whether carbonated or not,
9 including but not limited to soda water, cola, fruit juice,
10 vegetable juice, carbonated water, and all other preparations
11 commonly known as soft drinks of whatever kind or description
12 that are contained in any closed or sealed can, carton, or
13 container, regardless of size. "Soft drinks" does not
14 include coffee, tea, non-carbonated water, infant formula,
15 milk or milk products as defined in the Grade A Pasteurized
16 Milk and Milk Products Act, or drinks containing 50% or more
17 natural fruit or vegetable juice.
18 Notwithstanding any other provisions of this Act, "food
19 for human consumption that is to be consumed off the premises
20 where it is sold" includes all food sold through a vending
21 machine, except soft drinks and food products that are
22 dispensed hot from a vending machine, regardless of the
23 location of the vending machine.
24 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
25 91-51, 6-30-99; 91-541, eff. 8-13-99.)
26 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
27 Sec. 9. Each serviceman required or authorized to
28 collect the tax herein imposed shall pay to the Department
29 the amount of such tax at the time when he is required to
30 file his return for the period during which such tax was
31 collectible, less a discount of 2.1% prior to January 1,
32 1990, and 1.75% on and after January 1, 1990, or $5 per
33 calendar year, whichever is greater, which is allowed to
-37- LRB9110257SMdvam06
1 reimburse the serviceman for expenses incurred in collecting
2 the tax, keeping records, preparing and filing returns,
3 remitting the tax and supplying data to the Department on
4 request.
5 Where such tangible personal property is sold under a
6 conditional sales contract, or under any other form of sale
7 wherein the payment of the principal sum, or a part thereof,
8 is extended beyond the close of the period for which the
9 return is filed, the serviceman, in collecting the tax may
10 collect, for each tax return period, only the tax applicable
11 to the part of the selling price actually received during
12 such tax return period.
13 Except as provided hereinafter in this Section, on or
14 before the twentieth day of each calendar month, such
15 serviceman shall file a return for the preceding calendar
16 month in accordance with reasonable rules and regulations to
17 be promulgated by the Department of Revenue. Such return
18 shall be filed on a form prescribed by the Department and
19 shall contain such information as the Department may
20 reasonably require.
21 The Department may require returns to be filed on a
22 quarterly basis. If so required, a return for each calendar
23 quarter shall be filed on or before the twentieth day of the
24 calendar month following the end of such calendar quarter.
25 The taxpayer shall also file a return with the Department for
26 each of the first two months of each calendar quarter, on or
27 before the twentieth day of the following calendar month,
28 stating:
29 1. The name of the seller;
30 2. The address of the principal place of business
31 from which he engages in business as a serviceman in this
32 State;
33 3. The total amount of taxable receipts received by
34 him during the preceding calendar month, including
-38- LRB9110257SMdvam06
1 receipts from charge and time sales, but less all
2 deductions allowed by law;
3 4. The amount of credit provided in Section 2d of
4 this Act;
5 5. The amount of tax due;
6 5-5. The signature of the taxpayer; and
7 6. Such other reasonable information as the
8 Department may require.
9 If a taxpayer fails to sign a return within 30 days after
10 the proper notice and demand for signature by the Department,
11 the return shall be considered valid and any amount shown to
12 be due on the return shall be deemed assessed.
13 A serviceman may accept a Manufacturer's Purchase Credit
14 certification from a purchaser in satisfaction of Service Use
15 Tax as provided in Section 3-70 of the Service Use Tax Act if
16 the purchaser provides the appropriate documentation as
17 required by Section 3-70 of the Service Use Tax Act. A
18 Manufacturer's Purchase Credit certification, accepted by a
19 serviceman as provided in Section 3-70 of the Service Use Tax
20 Act, may be used by that serviceman to satisfy Service
21 Occupation Tax liability in the amount claimed in the
22 certification, not to exceed 6.25% of the receipts subject to
23 tax from a qualifying purchase.
24 If the serviceman's average monthly tax liability to the
25 Department does not exceed $200, the Department may authorize
26 his returns to be filed on a quarter annual basis, with the
27 return for January, February and March of a given year being
28 due by April 20 of such year; with the return for April, May
29 and June of a given year being due by July 20 of such year;
30 with the return for July, August and September of a given
31 year being due by October 20 of such year, and with the
32 return for October, November and December of a given year
33 being due by January 20 of the following year.
34 If the serviceman's average monthly tax liability to the
-39- LRB9110257SMdvam06
1 Department does not exceed $50, the Department may authorize
2 his returns to be filed on an annual basis, with the return
3 for a given year being due by January 20 of the following
4 year.
5 Such quarter annual and annual returns, as to form and
6 substance, shall be subject to the same requirements as
7 monthly returns.
8 Notwithstanding any other provision in this Act
9 concerning the time within which a serviceman may file his
10 return, in the case of any serviceman who ceases to engage in
11 a kind of business which makes him responsible for filing
12 returns under this Act, such serviceman shall file a final
13 return under this Act with the Department not more than 1
14 month after discontinuing such business.
15 Beginning October 1, 1993, a taxpayer who has an average
16 monthly tax liability of $150,000 or more shall make all
17 payments required by rules of the Department by electronic
18 funds transfer. Beginning October 1, 1994, a taxpayer who
19 has an average monthly tax liability of $100,000 or more
20 shall make all payments required by rules of the Department
21 by electronic funds transfer. Beginning October 1, 1995, a
22 taxpayer who has an average monthly tax liability of $50,000
23 or more shall make all payments required by rules of the
24 Department by electronic funds transfer. Beginning October
25 1, 2000, a taxpayer who has an annual tax liability of
26 $200,000 or more shall make all payments required by rules of
27 the Department by electronic funds transfer. The term
28 "annual tax liability" shall be the sum of the taxpayer's
29 liabilities under this Act, and under all other State and
30 local occupation and use tax laws administered by the
31 Department, for the immediately preceding calendar year. The
32 term "average monthly tax liability" means the sum of the
33 taxpayer's liabilities under this Act, and under all other
34 State and local occupation and use tax laws administered by
-40- LRB9110257SMdvam06
1 the Department, for the immediately preceding calendar year
2 divided by 12.
3 Before August 1 of each year beginning in 1993, the
4 Department shall notify all taxpayers required to make
5 payments by electronic funds transfer. All taxpayers
6 required to make payments by electronic funds transfer shall
7 make those payments for a minimum of one year beginning on
8 October 1.
9 Any taxpayer not required to make payments by electronic
10 funds transfer may make payments by electronic funds transfer
11 with the permission of the Department.
12 All taxpayers required to make payment by electronic
13 funds transfer and any taxpayers authorized to voluntarily
14 make payments by electronic funds transfer shall make those
15 payments in the manner authorized by the Department.
16 The Department shall adopt such rules as are necessary to
17 effectuate a program of electronic funds transfer and the
18 requirements of this Section.
19 Where a serviceman collects the tax with respect to the
20 selling price of tangible personal property which he sells
21 and the purchaser thereafter returns such tangible personal
22 property and the serviceman refunds the selling price thereof
23 to the purchaser, such serviceman shall also refund, to the
24 purchaser, the tax so collected from the purchaser. When
25 filing his return for the period in which he refunds such tax
26 to the purchaser, the serviceman may deduct the amount of the
27 tax so refunded by him to the purchaser from any other
28 Service Occupation Tax, Service Use Tax, Retailers'
29 Occupation Tax or Use Tax which such serviceman may be
30 required to pay or remit to the Department, as shown by such
31 return, provided that the amount of the tax to be deducted
32 shall previously have been remitted to the Department by such
33 serviceman. If the serviceman shall not previously have
34 remitted the amount of such tax to the Department, he shall
-41- LRB9110257SMdvam06
1 be entitled to no deduction hereunder upon refunding such tax
2 to the purchaser.
3 If experience indicates such action to be practicable,
4 the Department may prescribe and furnish a combination or
5 joint return which will enable servicemen, who are required
6 to file returns hereunder and also under the Retailers'
7 Occupation Tax Act, the Use Tax Act or the Service Use Tax
8 Act, to furnish all the return information required by all
9 said Acts on the one form.
10 Where the serviceman has more than one business
11 registered with the Department under separate registrations
12 hereunder, such serviceman shall file separate returns for
13 each registered business.
14 Beginning January 1, 1990, each month the Department
15 shall pay into the Local Government Tax Fund the revenue
16 realized for the preceding month from the 1% tax on sales of
17 food for human consumption which is to be consumed off the
18 premises where it is sold (other than alcoholic beverages,
19 soft drinks and food which has been prepared for immediate
20 consumption) and prescription and nonprescription medicines,
21 drugs, medical appliances and insulin, urine testing
22 materials, syringes and needles used by diabetics.
23 Beginning January 1, 1990, each month the Department
24 shall pay into the County and Mass Transit District Fund 4%
25 of the revenue realized for the preceding month from the
26 6.25% general rate.
27 Beginning November 1, 2000, and so long as the rate
28 remains at 1.25%, each month the Department shall pay into
29 the County and Mass Transit District Fund 20% of the net
30 revenue realized for the preceding month from the 1.25% rate
31 on the selling price of motor fuel and gasohol.
32 Beginning January 1, 1990, each month the Department
33 shall pay into the Local Government Tax Fund 16% of the
34 revenue realized for the preceding month from the 6.25%
-42- LRB9110257SMdvam06
1 general rate on transfers of tangible personal property.
2 Beginning November 1, 2000, and so long as the rate
3 remains at 1.25%, each month the Department shall pay into
4 the Local Government Tax Fund 80% of the net revenue realized
5 for the preceding month from the 1.25% rate on the selling
6 price of motor fuel and gasohol.
7 Of the remainder of the moneys received by the Department
8 pursuant to this Act, (a) 1.75% thereof shall be paid into
9 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
10 and on and after July 1, 1989, 3.8% thereof shall be paid
11 into the Build Illinois Fund; provided, however, that if in
12 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
13 as the case may be, of the moneys received by the Department
14 and required to be paid into the Build Illinois Fund pursuant
15 to Section 3 of the Retailers' Occupation Tax Act, Section 9
16 of the Use Tax Act, Section 9 of the Service Use Tax Act, and
17 Section 9 of the Service Occupation Tax Act, such Acts being
18 hereinafter called the "Tax Acts" and such aggregate of 2.2%
19 or 3.8%, as the case may be, of moneys being hereinafter
20 called the "Tax Act Amount", and (2) the amount transferred
21 to the Build Illinois Fund from the State and Local Sales Tax
22 Reform Fund shall be less than the Annual Specified Amount
23 (as defined in Section 3 of the Retailers' Occupation Tax
24 Act), an amount equal to the difference shall be immediately
25 paid into the Build Illinois Fund from other moneys received
26 by the Department pursuant to the Tax Acts; and further
27 provided, that if on the last business day of any month the
28 sum of (1) the Tax Act Amount required to be deposited into
29 the Build Illinois Account in the Build Illinois Fund during
30 such month and (2) the amount transferred during such month
31 to the Build Illinois Fund from the State and Local Sales Tax
32 Reform Fund shall have been less than 1/12 of the Annual
33 Specified Amount, an amount equal to the difference shall be
34 immediately paid into the Build Illinois Fund from other
-43- LRB9110257SMdvam06
1 moneys received by the Department pursuant to the Tax Acts;
2 and, further provided, that in no event shall the payments
3 required under the preceding proviso result in aggregate
4 payments into the Build Illinois Fund pursuant to this clause
5 (b) for any fiscal year in excess of the greater of (i) the
6 Tax Act Amount or (ii) the Annual Specified Amount for such
7 fiscal year; and, further provided, that the amounts payable
8 into the Build Illinois Fund under this clause (b) shall be
9 payable only until such time as the aggregate amount on
10 deposit under each trust indenture securing Bonds issued and
11 outstanding pursuant to the Build Illinois Bond Act is
12 sufficient, taking into account any future investment income,
13 to fully provide, in accordance with such indenture, for the
14 defeasance of or the payment of the principal of, premium, if
15 any, and interest on the Bonds secured by such indenture and
16 on any Bonds expected to be issued thereafter and all fees
17 and costs payable with respect thereto, all as certified by
18 the Director of the Bureau of the Budget. If on the last
19 business day of any month in which Bonds are outstanding
20 pursuant to the Build Illinois Bond Act, the aggregate of the
21 moneys deposited in the Build Illinois Bond Account in the
22 Build Illinois Fund in such month shall be less than the
23 amount required to be transferred in such month from the
24 Build Illinois Bond Account to the Build Illinois Bond
25 Retirement and Interest Fund pursuant to Section 13 of the
26 Build Illinois Bond Act, an amount equal to such deficiency
27 shall be immediately paid from other moneys received by the
28 Department pursuant to the Tax Acts to the Build Illinois
29 Fund; provided, however, that any amounts paid to the Build
30 Illinois Fund in any fiscal year pursuant to this sentence
31 shall be deemed to constitute payments pursuant to clause (b)
32 of the preceding sentence and shall reduce the amount
33 otherwise payable for such fiscal year pursuant to clause (b)
34 of the preceding sentence. The moneys received by the
-44- LRB9110257SMdvam06
1 Department pursuant to this Act and required to be deposited
2 into the Build Illinois Fund are subject to the pledge, claim
3 and charge set forth in Section 12 of the Build Illinois Bond
4 Act.
5 Subject to payment of amounts into the Build Illinois
6 Fund as provided in the preceding paragraph or in any
7 amendment thereto hereafter enacted, the following specified
8 monthly installment of the amount requested in the
9 certificate of the Chairman of the Metropolitan Pier and
10 Exposition Authority provided under Section 8.25f of the
11 State Finance Act, but not in excess of the sums designated
12 as "Total Deposit", shall be deposited in the aggregate from
13 collections under Section 9 of the Use Tax Act, Section 9 of
14 the Service Use Tax Act, Section 9 of the Service Occupation
15 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
16 into the McCormick Place Expansion Project Fund in the
17 specified fiscal years.
18 Fiscal Year Total Deposit
19 1993 $0
20 1994 53,000,000
21 1995 58,000,000
22 1996 61,000,000
23 1997 64,000,000
24 1998 68,000,000
25 1999 71,000,000
26 2000 75,000,000
27 2001 80,000,000
28 2002 84,000,000
29 2003 89,000,000
30 2004 93,000,000
31 2005 97,000,000
32 2006 102,000,000
33 2007 108,000,000
34 2008 115,000,000
-45- LRB9110257SMdvam06
1 2009 120,000,000
2 2010 126,000,000
3 2011 132,000,000
4 2012 138,000,000
5 2013 and 145,000,000
6 each fiscal year
7 thereafter that bonds
8 are outstanding under
9 Section 13.2 of the
10 Metropolitan Pier and
11 Exposition Authority
12 Act, but not after fiscal year 2029.
13 Beginning July 20, 1993 and in each month of each fiscal
14 year thereafter, one-eighth of the amount requested in the
15 certificate of the Chairman of the Metropolitan Pier and
16 Exposition Authority for that fiscal year, less the amount
17 deposited into the McCormick Place Expansion Project Fund by
18 the State Treasurer in the respective month under subsection
19 (g) of Section 13 of the Metropolitan Pier and Exposition
20 Authority Act, plus cumulative deficiencies in the deposits
21 required under this Section for previous months and years,
22 shall be deposited into the McCormick Place Expansion Project
23 Fund, until the full amount requested for the fiscal year,
24 but not in excess of the amount specified above as "Total
25 Deposit", has been deposited.
26 Subject to payment of amounts into the Build Illinois
27 Fund and the McCormick Place Expansion Project Fund pursuant
28 to the preceding paragraphs or in any amendment thereto
29 hereafter enacted, each month the Department shall pay into
30 the Local Government Distributive Fund 0.4% of the net
31 revenue realized for the preceding month from the 5% general
32 rate or 0.4% of 80% of the net revenue realized for the
33 preceding month from the 6.25% general rate, as the case may
34 be, on the selling price of tangible personal property which
-46- LRB9110257SMdvam06
1 amount shall, subject to appropriation, be distributed as
2 provided in Section 2 of the State Revenue Sharing Act. No
3 payments or distributions pursuant to this paragraph shall be
4 made if the tax imposed by this Act on photoprocessing
5 products is declared unconstitutional, or if the proceeds
6 from such tax are unavailable for distribution because of
7 litigation.
8 Subject to payment of amounts into the Build Illinois
9 Fund, the McCormick Place Expansion Project Fund, and the
10 Local Government Distributive Fund pursuant to the preceding
11 paragraphs or in any amendments thereto hereafter enacted,
12 beginning July 1, 1993, the Department shall each month pay
13 into the Illinois Tax Increment Fund 0.27% of 80% of the net
14 revenue realized for the preceding month from the 6.25%
15 general rate on the selling price of tangible personal
16 property.
17 Remaining moneys received by the Department pursuant to
18 this Act shall be paid into the General Revenue Fund of the
19 State Treasury.
20 The Department may, upon separate written notice to a
21 taxpayer, require the taxpayer to prepare and file with the
22 Department on a form prescribed by the Department within not
23 less than 60 days after receipt of the notice an annual
24 information return for the tax year specified in the notice.
25 Such annual return to the Department shall include a
26 statement of gross receipts as shown by the taxpayer's last
27 Federal income tax return. If the total receipts of the
28 business as reported in the Federal income tax return do not
29 agree with the gross receipts reported to the Department of
30 Revenue for the same period, the taxpayer shall attach to his
31 annual return a schedule showing a reconciliation of the 2
32 amounts and the reasons for the difference. The taxpayer's
33 annual return to the Department shall also disclose the cost
34 of goods sold by the taxpayer during the year covered by such
-47- LRB9110257SMdvam06
1 return, opening and closing inventories of such goods for
2 such year, cost of goods used from stock or taken from stock
3 and given away by the taxpayer during such year, pay roll
4 information of the taxpayer's business during such year and
5 any additional reasonable information which the Department
6 deems would be helpful in determining the accuracy of the
7 monthly, quarterly or annual returns filed by such taxpayer
8 as hereinbefore provided for in this Section.
9 If the annual information return required by this Section
10 is not filed when and as required, the taxpayer shall be
11 liable as follows:
12 (i) Until January 1, 1994, the taxpayer shall be
13 liable for a penalty equal to 1/6 of 1% of the tax due
14 from such taxpayer under this Act during the period to be
15 covered by the annual return for each month or fraction
16 of a month until such return is filed as required, the
17 penalty to be assessed and collected in the same manner
18 as any other penalty provided for in this Act.
19 (ii) On and after January 1, 1994, the taxpayer
20 shall be liable for a penalty as described in Section 3-4
21 of the Uniform Penalty and Interest Act.
22 The chief executive officer, proprietor, owner or highest
23 ranking manager shall sign the annual return to certify the
24 accuracy of the information contained therein. Any person
25 who willfully signs the annual return containing false or
26 inaccurate information shall be guilty of perjury and
27 punished accordingly. The annual return form prescribed by
28 the Department shall include a warning that the person
29 signing the return may be liable for perjury.
30 The foregoing portion of this Section concerning the
31 filing of an annual information return shall not apply to a
32 serviceman who is not required to file an income tax return
33 with the United States Government.
34 As soon as possible after the first day of each month,
-48- LRB9110257SMdvam06
1 upon certification of the Department of Revenue, the
2 Comptroller shall order transferred and the Treasurer shall
3 transfer from the General Revenue Fund to the Motor Fuel Tax
4 Fund an amount equal to 1.7% of 80% of the net revenue
5 realized under this Act for the second preceding month.
6 Beginning April 1, 2000, this transfer is no longer required
7 and shall not be made.
8 Net revenue realized for a month shall be the revenue
9 collected by the State pursuant to this Act, less the amount
10 paid out during that month as refunds to taxpayers for
11 overpayment of liability.
12 For greater simplicity of administration, it shall be
13 permissible for manufacturers, importers and wholesalers
14 whose products are sold by numerous servicemen in Illinois,
15 and who wish to do so, to assume the responsibility for
16 accounting and paying to the Department all tax accruing
17 under this Act with respect to such sales, if the servicemen
18 who are affected do not make written objection to the
19 Department to this arrangement.
20 (Source: P.A. 90-612, eff. 7-8-98; 91-37, eff. 7-1-99; 91-51,
21 eff. 6-30-99; 91-101, eff. 7-12-99; 91-541, eff. 8-13-99;
22 revised 9-28-99.)
23 Section 20. The Retailers' Occupation Tax Act is amended
24 by changing Sections 2-10, 2d, and 3 as follows:
25 (35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
26 Sec. 2-10. Rate of tax. Unless otherwise provided in
27 this Section, the tax imposed by this Act is at the rate of
28 6.25% of gross receipts from sales of tangible personal
29 property made in the course of business.
30 With respect to motor fuel, as defined in Section 1.1 of
31 the Motor Fuel Tax Law, and gasohol, as defined in Section
32 3-40 of the Use Tax Act, the tax is imposed at the rate of
-49- LRB9110257SMdvam06
1 1.25%. If, however, the aggregate tax revenues from motor
2 fuel and gasohol under the Motor Fuel Tax Law during the
3 period from October 1, 2002 through September 30, 2003 are
4 not at least 15% more than the aggregate tax revenues from
5 motor fuel and gasohol under that Law during the period from
6 October 1, 1999 through September 30, 2000, then beginning
7 January 1, 2004 the tax is imposed on motor fuel and gasohol
8 at the 6.25% general rate.
9 With respect to gasohol, as defined in the Use Tax Act,
10 the tax imposed by this Act applies to 70% of the proceeds of
11 sales made on or after January 1, 1990, and before July 1,
12 2003, and to 100% of the proceeds of sales made thereafter.
13 With respect to food for human consumption that is to be
14 consumed off the premises where it is sold (other than
15 alcoholic beverages, soft drinks, and food that has been
16 prepared for immediate consumption) and prescription and
17 nonprescription medicines, drugs, medical appliances,
18 modifications to a motor vehicle for the purpose of rendering
19 it usable by a disabled person, and insulin, urine testing
20 materials, syringes, and needles used by diabetics, for human
21 use, the tax is imposed at the rate of 1%. For the purposes
22 of this Section, the term "soft drinks" means any complete,
23 finished, ready-to-use, non-alcoholic drink, whether
24 carbonated or not, including but not limited to soda water,
25 cola, fruit juice, vegetable juice, carbonated water, and all
26 other preparations commonly known as soft drinks of whatever
27 kind or description that are contained in any closed or
28 sealed bottle, can, carton, or container, regardless of size.
29 "Soft drinks" does not include coffee, tea, non-carbonated
30 water, infant formula, milk or milk products as defined in
31 the Grade A Pasteurized Milk and Milk Products Act, or drinks
32 containing 50% or more natural fruit or vegetable juice.
33 Notwithstanding any other provisions of this Act, "food
34 for human consumption that is to be consumed off the premises
-50- LRB9110257SMdvam06
1 where it is sold" includes all food sold through a vending
2 machine, except soft drinks and food products that are
3 dispensed hot from a vending machine, regardless of the
4 location of the vending machine.
5 (Source: P.A. 90-605, eff. 6-30-98; 90-606, eff. 6-30-98;
6 91-51, eff. 6-30-99.)
7 (35 ILCS 120/2d) (from Ch. 120, par. 441d)
8 Sec. 2d. Tax prepayment by motor fuel retailer. Any
9 person engaged in the business of selling motor fuel at
10 retail, as defined in the Motor Fuel Tax Law, and who is not
11 a licensed distributor or supplier, as defined in the Motor
12 Fuel Tax Law, shall prepay to his or her distributor,
13 supplier, or other reseller of motor fuel a portion of the
14 tax imposed by this Act if the distributor, supplier, or
15 other reseller of motor fuel is registered under Section 2a
16 or Section 2c of this Act. The prepayment requirement
17 provided for in this Section does not apply to liquid propane
18 gas.
19 The Retailers' Occupation Tax paid to the distributor,
20 supplier, or other reseller shall be an amount equal to 0.8
21 cents $0.04 per gallon of the motor fuel, except gasohol as
22 defined in Section 2-10 of this Act which shall be an amount
23 equal to 0.6 cents $0.03 per gallon, purchased from the
24 distributor, supplier, or other reseller. If, as a result of
25 the provisions of this amendatory Act of the 91st General
26 Assembly, the rate of tax imposed on the sale of motor fuel
27 and gasohol by the Retailers' Occupation Tax Act returns to
28 6.25%, then the Retailers' Occupation Tax paid to the
29 distributor, supplier, or other reseller shall be an amount
30 equal to $0.04 per gallon of the motor fuel, except gasohol
31 as defined in Section 2-10 of this Act which shall be an
32 amount equal to $0.03 per gallon, purchased from the
33 distributor, supplier, or other reseller.
-51- LRB9110257SMdvam06
1 Any person engaged in the business of selling motor fuel
2 at retail shall be entitled to a credit against tax due under
3 this Act in an amount equal to the tax paid to the
4 distributor, supplier, or other reseller.
5 Every distributor, supplier, or other reseller registered
6 as provided in Section 2a or Section 2c of this Act shall
7 remit the prepaid tax on all motor fuel that is due from any
8 person engaged in the business of selling at retail motor
9 fuel with the returns filed under Section 2f or Section 3 of
10 this Act, but the vendors discount provided in Section 3
11 shall not apply to the amount of prepaid tax that is
12 remitted. Any distributor or supplier who fails to properly
13 collect and remit the tax shall be liable for the tax. For
14 purposes of this Section, the prepaid tax is due on invoiced
15 gallons sold during a month by the 20th day of the following
16 month.
17 (Source: P.A. 86-1475; 87-14.)
18 (35 ILCS 120/3) (from Ch. 120, par. 442)
19 Sec. 3. Except as provided in this Section, on or before
20 the twentieth day of each calendar month, every person
21 engaged in the business of selling tangible personal property
22 at retail in this State during the preceding calendar month
23 shall file a return with the Department, stating:
24 1. The name of the seller;
25 2. His residence address and the address of his
26 principal place of business and the address of the
27 principal place of business (if that is a different
28 address) from which he engages in the business of selling
29 tangible personal property at retail in this State;
30 3. Total amount of receipts received by him during
31 the preceding calendar month or quarter, as the case may
32 be, from sales of tangible personal property, and from
33 services furnished, by him during such preceding calendar
-52- LRB9110257SMdvam06
1 month or quarter;
2 4. Total amount received by him during the
3 preceding calendar month or quarter on charge and time
4 sales of tangible personal property, and from services
5 furnished, by him prior to the month or quarter for which
6 the return is filed;
7 5. Deductions allowed by law;
8 6. Gross receipts which were received by him during
9 the preceding calendar month or quarter and upon the
10 basis of which the tax is imposed;
11 7. The amount of credit provided in Section 2d of
12 this Act;
13 8. The amount of tax due;
14 9. The signature of the taxpayer; and
15 10. Such other reasonable information as the
16 Department may require.
17 If a taxpayer fails to sign a return within 30 days after
18 the proper notice and demand for signature by the Department,
19 the return shall be considered valid and any amount shown to
20 be due on the return shall be deemed assessed.
21 Each return shall be accompanied by the statement of
22 prepaid tax issued pursuant to Section 2e for which credit is
23 claimed.
24 A retailer may accept a Manufacturer's Purchase Credit
25 certification from a purchaser in satisfaction of Use Tax as
26 provided in Section 3-85 of the Use Tax Act if the purchaser
27 provides the appropriate documentation as required by Section
28 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
29 certification, accepted by a retailer as provided in Section
30 3-85 of the Use Tax Act, may be used by that retailer to
31 satisfy Retailers' Occupation Tax liability in the amount
32 claimed in the certification, not to exceed 6.25% of the
33 receipts subject to tax from a qualifying purchase.
34 The Department may require returns to be filed on a
-53- LRB9110257SMdvam06
1 quarterly basis. If so required, a return for each calendar
2 quarter shall be filed on or before the twentieth day of the
3 calendar month following the end of such calendar quarter.
4 The taxpayer shall also file a return with the Department for
5 each of the first two months of each calendar quarter, on or
6 before the twentieth day of the following calendar month,
7 stating:
8 1. The name of the seller;
9 2. The address of the principal place of business
10 from which he engages in the business of selling tangible
11 personal property at retail in this State;
12 3. The total amount of taxable receipts received by
13 him during the preceding calendar month from sales of
14 tangible personal property by him during such preceding
15 calendar month, including receipts from charge and time
16 sales, but less all deductions allowed by law;
17 4. The amount of credit provided in Section 2d of
18 this Act;
19 5. The amount of tax due; and
20 6. Such other reasonable information as the
21 Department may require.
22 If a total amount of less than $1 is payable, refundable
23 or creditable, such amount shall be disregarded if it is less
24 than 50 cents and shall be increased to $1 if it is 50 cents
25 or more.
26 Beginning October 1, 1993, a taxpayer who has an average
27 monthly tax liability of $150,000 or more shall make all
28 payments required by rules of the Department by electronic
29 funds transfer. Beginning October 1, 1994, a taxpayer who
30 has an average monthly tax liability of $100,000 or more
31 shall make all payments required by rules of the Department
32 by electronic funds transfer. Beginning October 1, 1995, a
33 taxpayer who has an average monthly tax liability of $50,000
34 or more shall make all payments required by rules of the
-54- LRB9110257SMdvam06
1 Department by electronic funds transfer. Beginning October
2 1, 2000, a taxpayer who has an annual tax liability of
3 $200,000 or more shall make all payments required by rules of
4 the Department by electronic funds transfer. The term
5 "annual tax liability" shall be the sum of the taxpayer's
6 liabilities under this Act, and under all other State and
7 local occupation and use tax laws administered by the
8 Department, for the immediately preceding calendar year. The
9 term "average monthly tax liability" shall be the sum of the
10 taxpayer's liabilities under this Act, and under all other
11 State and local occupation and use tax laws administered by
12 the Department, for the immediately preceding calendar year
13 divided by 12.
14 Before August 1 of each year beginning in 1993, the
15 Department shall notify all taxpayers required to make
16 payments by electronic funds transfer. All taxpayers
17 required to make payments by electronic funds transfer shall
18 make those payments for a minimum of one year beginning on
19 October 1.
20 Any taxpayer not required to make payments by electronic
21 funds transfer may make payments by electronic funds transfer
22 with the permission of the Department.
23 All taxpayers required to make payment by electronic
24 funds transfer and any taxpayers authorized to voluntarily
25 make payments by electronic funds transfer shall make those
26 payments in the manner authorized by the Department.
27 The Department shall adopt such rules as are necessary to
28 effectuate a program of electronic funds transfer and the
29 requirements of this Section.
30 Any amount which is required to be shown or reported on
31 any return or other document under this Act shall, if such
32 amount is not a whole-dollar amount, be increased to the
33 nearest whole-dollar amount in any case where the fractional
34 part of a dollar is 50 cents or more, and decreased to the
-55- LRB9110257SMdvam06
1 nearest whole-dollar amount where the fractional part of a
2 dollar is less than 50 cents.
3 If the retailer is otherwise required to file a monthly
4 return and if the retailer's average monthly tax liability to
5 the Department does not exceed $200, the Department may
6 authorize his returns to be filed on a quarter annual basis,
7 with the return for January, February and March of a given
8 year being due by April 20 of such year; with the return for
9 April, May and June of a given year being due by July 20 of
10 such year; with the return for July, August and September of
11 a given year being due by October 20 of such year, and with
12 the return for October, November and December of a given year
13 being due by January 20 of the following year.
14 If the retailer is otherwise required to file a monthly
15 or quarterly return and if the retailer's average monthly tax
16 liability with the Department does not exceed $50, the
17 Department may authorize his returns to be filed on an annual
18 basis, with the return for a given year being due by January
19 20 of the following year.
20 Such quarter annual and annual returns, as to form and
21 substance, shall be subject to the same requirements as
22 monthly returns.
23 Notwithstanding any other provision in this Act
24 concerning the time within which a retailer may file his
25 return, in the case of any retailer who ceases to engage in a
26 kind of business which makes him responsible for filing
27 returns under this Act, such retailer shall file a final
28 return under this Act with the Department not more than one
29 month after discontinuing such business.
30 Where the same person has more than one business
31 registered with the Department under separate registrations
32 under this Act, such person may not file each return that is
33 due as a single return covering all such registered
34 businesses, but shall file separate returns for each such
-56- LRB9110257SMdvam06
1 registered business.
2 In addition, with respect to motor vehicles, watercraft,
3 aircraft, and trailers that are required to be registered
4 with an agency of this State, every retailer selling this
5 kind of tangible personal property shall file, with the
6 Department, upon a form to be prescribed and supplied by the
7 Department, a separate return for each such item of tangible
8 personal property which the retailer sells, except that
9 where, in the same transaction, a retailer of aircraft,
10 watercraft, motor vehicles or trailers transfers more than
11 one aircraft, watercraft, motor vehicle or trailer to another
12 aircraft, watercraft, motor vehicle retailer or trailer
13 retailer for the purpose of resale, that seller for resale
14 may report the transfer of all aircraft, watercraft, motor
15 vehicles or trailers involved in that transaction to the
16 Department on the same uniform invoice-transaction reporting
17 return form. For purposes of this Section, "watercraft"
18 means a Class 2, Class 3, or Class 4 watercraft as defined in
19 Section 3-2 of the Boat Registration and Safety Act, a
20 personal watercraft, or any boat equipped with an inboard
21 motor.
22 Any retailer who sells only motor vehicles, watercraft,
23 aircraft, or trailers that are required to be registered with
24 an agency of this State, so that all retailers' occupation
25 tax liability is required to be reported, and is reported, on
26 such transaction reporting returns and who is not otherwise
27 required to file monthly or quarterly returns, need not file
28 monthly or quarterly returns. However, those retailers shall
29 be required to file returns on an annual basis.
30 The transaction reporting return, in the case of motor
31 vehicles or trailers that are required to be registered with
32 an agency of this State, shall be the same document as the
33 Uniform Invoice referred to in Section 5-402 of The Illinois
34 Vehicle Code and must show the name and address of the
-57- LRB9110257SMdvam06
1 seller; the name and address of the purchaser; the amount of
2 the selling price including the amount allowed by the
3 retailer for traded-in property, if any; the amount allowed
4 by the retailer for the traded-in tangible personal property,
5 if any, to the extent to which Section 1 of this Act allows
6 an exemption for the value of traded-in property; the balance
7 payable after deducting such trade-in allowance from the
8 total selling price; the amount of tax due from the retailer
9 with respect to such transaction; the amount of tax collected
10 from the purchaser by the retailer on such transaction (or
11 satisfactory evidence that such tax is not due in that
12 particular instance, if that is claimed to be the fact); the
13 place and date of the sale; a sufficient identification of
14 the property sold; such other information as is required in
15 Section 5-402 of The Illinois Vehicle Code, and such other
16 information as the Department may reasonably require.
17 The transaction reporting return in the case of
18 watercraft or aircraft must show the name and address of the
19 seller; the name and address of the purchaser; the amount of
20 the selling price including the amount allowed by the
21 retailer for traded-in property, if any; the amount allowed
22 by the retailer for the traded-in tangible personal property,
23 if any, to the extent to which Section 1 of this Act allows
24 an exemption for the value of traded-in property; the balance
25 payable after deducting such trade-in allowance from the
26 total selling price; the amount of tax due from the retailer
27 with respect to such transaction; the amount of tax collected
28 from the purchaser by the retailer on such transaction (or
29 satisfactory evidence that such tax is not due in that
30 particular instance, if that is claimed to be the fact); the
31 place and date of the sale, a sufficient identification of
32 the property sold, and such other information as the
33 Department may reasonably require.
34 Such transaction reporting return shall be filed not
-58- LRB9110257SMdvam06
1 later than 20 days after the day of delivery of the item that
2 is being sold, but may be filed by the retailer at any time
3 sooner than that if he chooses to do so. The transaction
4 reporting return and tax remittance or proof of exemption
5 from the Illinois use tax may be transmitted to the
6 Department by way of the State agency with which, or State
7 officer with whom the tangible personal property must be
8 titled or registered (if titling or registration is required)
9 if the Department and such agency or State officer determine
10 that this procedure will expedite the processing of
11 applications for title or registration.
12 With each such transaction reporting return, the retailer
13 shall remit the proper amount of tax due (or shall submit
14 satisfactory evidence that the sale is not taxable if that is
15 the case), to the Department or its agents, whereupon the
16 Department shall issue, in the purchaser's name, a use tax
17 receipt (or a certificate of exemption if the Department is
18 satisfied that the particular sale is tax exempt) which such
19 purchaser may submit to the agency with which, or State
20 officer with whom, he must title or register the tangible
21 personal property that is involved (if titling or
22 registration is required) in support of such purchaser's
23 application for an Illinois certificate or other evidence of
24 title or registration to such tangible personal property.
25 No retailer's failure or refusal to remit tax under this
26 Act precludes a user, who has paid the proper tax to the
27 retailer, from obtaining his certificate of title or other
28 evidence of title or registration (if titling or registration
29 is required) upon satisfying the Department that such user
30 has paid the proper tax (if tax is due) to the retailer. The
31 Department shall adopt appropriate rules to carry out the
32 mandate of this paragraph.
33 If the user who would otherwise pay tax to the retailer
34 wants the transaction reporting return filed and the payment
-59- LRB9110257SMdvam06
1 of the tax or proof of exemption made to the Department
2 before the retailer is willing to take these actions and such
3 user has not paid the tax to the retailer, such user may
4 certify to the fact of such delay by the retailer and may
5 (upon the Department being satisfied of the truth of such
6 certification) transmit the information required by the
7 transaction reporting return and the remittance for tax or
8 proof of exemption directly to the Department and obtain his
9 tax receipt or exemption determination, in which event the
10 transaction reporting return and tax remittance (if a tax
11 payment was required) shall be credited by the Department to
12 the proper retailer's account with the Department, but
13 without the 2.1% or 1.75% discount provided for in this
14 Section being allowed. When the user pays the tax directly
15 to the Department, he shall pay the tax in the same amount
16 and in the same form in which it would be remitted if the tax
17 had been remitted to the Department by the retailer.
18 Refunds made by the seller during the preceding return
19 period to purchasers, on account of tangible personal
20 property returned to the seller, shall be allowed as a
21 deduction under subdivision 5 of his monthly or quarterly
22 return, as the case may be, in case the seller had
23 theretofore included the receipts from the sale of such
24 tangible personal property in a return filed by him and had
25 paid the tax imposed by this Act with respect to such
26 receipts.
27 Where the seller is a corporation, the return filed on
28 behalf of such corporation shall be signed by the president,
29 vice-president, secretary or treasurer or by the properly
30 accredited agent of such corporation.
31 Where the seller is a limited liability company, the
32 return filed on behalf of the limited liability company shall
33 be signed by a manager, member, or properly accredited agent
34 of the limited liability company.
-60- LRB9110257SMdvam06
1 Except as provided in this Section, the retailer filing
2 the return under this Section shall, at the time of filing
3 such return, pay to the Department the amount of tax imposed
4 by this Act less a discount of 2.1% prior to January 1, 1990
5 and 1.75% on and after January 1, 1990, or $5 per calendar
6 year, whichever is greater, which is allowed to reimburse the
7 retailer for the expenses incurred in keeping records,
8 preparing and filing returns, remitting the tax and supplying
9 data to the Department on request. Any prepayment made
10 pursuant to Section 2d of this Act shall be included in the
11 amount on which such 2.1% or 1.75% discount is computed. In
12 the case of retailers who report and pay the tax on a
13 transaction by transaction basis, as provided in this
14 Section, such discount shall be taken with each such tax
15 remittance instead of when such retailer files his periodic
16 return.
17 Before October 1, 2000, if the taxpayer's average monthly
18 tax liability to the Department under this Act, the Use Tax
19 Act, the Service Occupation Tax Act, and the Service Use Tax
20 Act, excluding any liability for prepaid sales tax to be
21 remitted in accordance with Section 2d of this Act, was
22 $10,000 or more during the preceding 4 complete calendar
23 quarters, he shall file a return with the Department each
24 month by the 20th day of the month next following the month
25 during which such tax liability is incurred and shall make
26 payments to the Department on or before the 7th, 15th, 22nd
27 and last day of the month during which such liability is
28 incurred. On and after October 1, 2000, if the taxpayer's
29 average monthly tax liability to the Department under this
30 Act, the Use Tax Act, the Service Occupation Tax Act, and the
31 Service Use Tax Act, excluding any liability for prepaid
32 sales tax to be remitted in accordance with Section 2d of
33 this Act, was $20,000 or more during the preceding 4 complete
34 calendar quarters, he shall file a return with the Department
-61- LRB9110257SMdvam06
1 each month by the 20th day of the month next following the
2 month during which such tax liability is incurred and shall
3 make payment to the Department on or before the 7th, 15th,
4 22nd and last day of the month during which such liability is
5 incurred. If the month during which such tax liability is
6 incurred began prior to January 1, 1985, each payment shall
7 be in an amount equal to 1/4 of the taxpayer's actual
8 liability for the month or an amount set by the Department
9 not to exceed 1/4 of the average monthly liability of the
10 taxpayer to the Department for the preceding 4 complete
11 calendar quarters (excluding the month of highest liability
12 and the month of lowest liability in such 4 quarter period).
13 If the month during which such tax liability is incurred
14 begins on or after January 1, 1985 and prior to January 1,
15 1987, each payment shall be in an amount equal to 22.5% of
16 the taxpayer's actual liability for the month or 27.5% of the
17 taxpayer's liability for the same calendar month of the
18 preceding year. If the month during which such tax liability
19 is incurred begins on or after January 1, 1987 and prior to
20 January 1, 1988, each payment shall be in an amount equal to
21 22.5% of the taxpayer's actual liability for the month or
22 26.25% of the taxpayer's liability for the same calendar
23 month of the preceding year. If the month during which such
24 tax liability is incurred begins on or after January 1, 1988,
25 and prior to January 1, 1989, or begins on or after January
26 1, 1996, each payment shall be in an amount equal to 22.5% of
27 the taxpayer's actual liability for the month or 25% of the
28 taxpayer's liability for the same calendar month of the
29 preceding year. If the month during which such tax liability
30 is incurred begins on or after January 1, 1989, and prior to
31 January 1, 1996, each payment shall be in an amount equal to
32 22.5% of the taxpayer's actual liability for the month or 25%
33 of the taxpayer's liability for the same calendar month of
34 the preceding year or 100% of the taxpayer's actual liability
-62- LRB9110257SMdvam06
1 for the quarter monthly reporting period. The amount of such
2 quarter monthly payments shall be credited against the final
3 tax liability of the taxpayer's return for that month.
4 Before October 1, 2000, once applicable, the requirement of
5 the making of quarter monthly payments to the Department by
6 taxpayers having an average monthly tax liability of $10,000
7 or more as determined in the manner provided above shall
8 continue until such taxpayer's average monthly liability to
9 the Department during the preceding 4 complete calendar
10 quarters (excluding the month of highest liability and the
11 month of lowest liability) is less than $9,000, or until such
12 taxpayer's average monthly liability to the Department as
13 computed for each calendar quarter of the 4 preceding
14 complete calendar quarter period is less than $10,000.
15 However, if a taxpayer can show the Department that a
16 substantial change in the taxpayer's business has occurred
17 which causes the taxpayer to anticipate that his average
18 monthly tax liability for the reasonably foreseeable future
19 will fall below the $10,000 threshold stated above, then such
20 taxpayer may petition the Department for a change in such
21 taxpayer's reporting status. On and after October 1, 2000,
22 once applicable, the requirement of the making of quarter
23 monthly payments to the Department by taxpayers having an
24 average monthly tax liability of $20,000 or more as
25 determined in the manner provided above shall continue until
26 such taxpayer's average monthly liability to the Department
27 during the preceding 4 complete calendar quarters (excluding
28 the month of highest liability and the month of lowest
29 liability) is less than $19,000 or until such taxpayer's
30 average monthly liability to the Department as computed for
31 each calendar quarter of the 4 preceding complete calendar
32 quarter period is less than $20,000. However, if a taxpayer
33 can show the Department that a substantial change in the
34 taxpayer's business has occurred which causes the taxpayer to
-63- LRB9110257SMdvam06
1 anticipate that his average monthly tax liability for the
2 reasonably foreseeable future will fall below the $20,000
3 threshold stated above, then such taxpayer may petition the
4 Department for a change in such taxpayer's reporting status.
5 The Department shall change such taxpayer's reporting status
6 unless it finds that such change is seasonal in nature and
7 not likely to be long term. If any such quarter monthly
8 payment is not paid at the time or in the amount required by
9 this Section, then the taxpayer shall be liable for penalties
10 and interest on the difference between the minimum amount due
11 as a payment and the amount of such quarter monthly payment
12 actually and timely paid, except insofar as the taxpayer has
13 previously made payments for that month to the Department in
14 excess of the minimum payments previously due as provided in
15 this Section. The Department shall make reasonable rules and
16 regulations to govern the quarter monthly payment amount and
17 quarter monthly payment dates for taxpayers who file on other
18 than a calendar monthly basis.
19 Without regard to whether a taxpayer is required to make
20 quarter monthly payments as specified above, any taxpayer who
21 is required by Section 2d of this Act to collect and remit
22 prepaid taxes and has collected prepaid taxes which average
23 in excess of $25,000 per month during the preceding 2
24 complete calendar quarters, shall file a return with the
25 Department as required by Section 2f and shall make payments
26 to the Department on or before the 7th, 15th, 22nd and last
27 day of the month during which such liability is incurred. If
28 the month during which such tax liability is incurred began
29 prior to the effective date of this amendatory Act of 1985,
30 each payment shall be in an amount not less than 22.5% of the
31 taxpayer's actual liability under Section 2d. If the month
32 during which such tax liability is incurred begins on or
33 after January 1, 1986, each payment shall be in an amount
34 equal to 22.5% of the taxpayer's actual liability for the
-64- LRB9110257SMdvam06
1 month or 27.5% of the taxpayer's liability for the same
2 calendar month of the preceding calendar year. If the month
3 during which such tax liability is incurred begins on or
4 after January 1, 1987, each payment shall be in an amount
5 equal to 22.5% of the taxpayer's actual liability for the
6 month or 26.25% of the taxpayer's liability for the same
7 calendar month of the preceding year. The amount of such
8 quarter monthly payments shall be credited against the final
9 tax liability of the taxpayer's return for that month filed
10 under this Section or Section 2f, as the case may be. Once
11 applicable, the requirement of the making of quarter monthly
12 payments to the Department pursuant to this paragraph shall
13 continue until such taxpayer's average monthly prepaid tax
14 collections during the preceding 2 complete calendar quarters
15 is $25,000 or less. If any such quarter monthly payment is
16 not paid at the time or in the amount required, the taxpayer
17 shall be liable for penalties and interest on such
18 difference, except insofar as the taxpayer has previously
19 made payments for that month in excess of the minimum
20 payments previously due.
21 If any payment provided for in this Section exceeds the
22 taxpayer's liabilities under this Act, the Use Tax Act, the
23 Service Occupation Tax Act and the Service Use Tax Act, as
24 shown on an original monthly return, the Department shall, if
25 requested by the taxpayer, issue to the taxpayer a credit
26 memorandum no later than 30 days after the date of payment.
27 The credit evidenced by such credit memorandum may be
28 assigned by the taxpayer to a similar taxpayer under this
29 Act, the Use Tax Act, the Service Occupation Tax Act or the
30 Service Use Tax Act, in accordance with reasonable rules and
31 regulations to be prescribed by the Department. If no such
32 request is made, the taxpayer may credit such excess payment
33 against tax liability subsequently to be remitted to the
34 Department under this Act, the Use Tax Act, the Service
-65- LRB9110257SMdvam06
1 Occupation Tax Act or the Service Use Tax Act, in accordance
2 with reasonable rules and regulations prescribed by the
3 Department. If the Department subsequently determined that
4 all or any part of the credit taken was not actually due to
5 the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
6 shall be reduced by 2.1% or 1.75% of the difference between
7 the credit taken and that actually due, and that taxpayer
8 shall be liable for penalties and interest on such
9 difference.
10 If a retailer of motor fuel is entitled to a credit under
11 Section 2d of this Act which exceeds the taxpayer's liability
12 to the Department under this Act for the month which the
13 taxpayer is filing a return, the Department shall issue the
14 taxpayer a credit memorandum for the excess.
15 Beginning January 1, 1990, each month the Department
16 shall pay into the Local Government Tax Fund, a special fund
17 in the State treasury which is hereby created, the net
18 revenue realized for the preceding month from the 1% tax on
19 sales of food for human consumption which is to be consumed
20 off the premises where it is sold (other than alcoholic
21 beverages, soft drinks and food which has been prepared for
22 immediate consumption) and prescription and nonprescription
23 medicines, drugs, medical appliances and insulin, urine
24 testing materials, syringes and needles used by diabetics.
25 Beginning January 1, 1990, each month the Department
26 shall pay into the County and Mass Transit District Fund, a
27 special fund in the State treasury which is hereby created,
28 4% of the net revenue realized for the preceding month from
29 the 6.25% general rate.
30 Beginning November 1, 2000, and so long as the rate
31 remains at 1.25%, each month the Department shall pay into
32 the County and Mass Transit District Fund 20% of the net
33 revenue realized for the preceding month from the 1.25% rate
34 on the selling price of motor fuel and gasohol.
-66- LRB9110257SMdvam06
1 Beginning January 1, 1990, each month the Department
2 shall pay into the Local Government Tax Fund 16% of the net
3 revenue realized for the preceding month from the 6.25%
4 general rate on the selling price of tangible personal
5 property.
6 Beginning November 1, 2000, and so long as the rate
7 remains at 1.25%, each month the Department shall pay into
8 the Local Government Tax Fund 80% of the net revenue realized
9 for the preceding month from the 1.25% rate on the selling
10 price of motor fuel and gasohol.
11 Of the remainder of the moneys received by the Department
12 pursuant to this Act, (a) 1.75% thereof shall be paid into
13 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
14 and on and after July 1, 1989, 3.8% thereof shall be paid
15 into the Build Illinois Fund; provided, however, that if in
16 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
17 as the case may be, of the moneys received by the Department
18 and required to be paid into the Build Illinois Fund pursuant
19 to this Act, Section 9 of the Use Tax Act, Section 9 of the
20 Service Use Tax Act, and Section 9 of the Service Occupation
21 Tax Act, such Acts being hereinafter called the "Tax Acts"
22 and such aggregate of 2.2% or 3.8%, as the case may be, of
23 moneys being hereinafter called the "Tax Act Amount", and (2)
24 the amount transferred to the Build Illinois Fund from the
25 State and Local Sales Tax Reform Fund shall be less than the
26 Annual Specified Amount (as hereinafter defined), an amount
27 equal to the difference shall be immediately paid into the
28 Build Illinois Fund from other moneys received by the
29 Department pursuant to the Tax Acts; the "Annual Specified
30 Amount" means the amounts specified below for fiscal years
31 1986 through 1993:
32 Fiscal Year Annual Specified Amount
33 1986 $54,800,000
34 1987 $76,650,000
-67- LRB9110257SMdvam06
1 1988 $80,480,000
2 1989 $88,510,000
3 1990 $115,330,000
4 1991 $145,470,000
5 1992 $182,730,000
6 1993 $206,520,000;
7 and means the Certified Annual Debt Service Requirement (as
8 defined in Section 13 of the Build Illinois Bond Act) or the
9 Tax Act Amount, whichever is greater, for fiscal year 1994
10 and each fiscal year thereafter; and further provided, that
11 if on the last business day of any month the sum of (1) the
12 Tax Act Amount required to be deposited into the Build
13 Illinois Bond Account in the Build Illinois Fund during such
14 month and (2) the amount transferred to the Build Illinois
15 Fund from the State and Local Sales Tax Reform Fund shall
16 have been less than 1/12 of the Annual Specified Amount, an
17 amount equal to the difference shall be immediately paid into
18 the Build Illinois Fund from other moneys received by the
19 Department pursuant to the Tax Acts; and, further provided,
20 that in no event shall the payments required under the
21 preceding proviso result in aggregate payments into the Build
22 Illinois Fund pursuant to this clause (b) for any fiscal year
23 in excess of the greater of (i) the Tax Act Amount or (ii)
24 the Annual Specified Amount for such fiscal year. The
25 amounts payable into the Build Illinois Fund under clause (b)
26 of the first sentence in this paragraph shall be payable only
27 until such time as the aggregate amount on deposit under each
28 trust indenture securing Bonds issued and outstanding
29 pursuant to the Build Illinois Bond Act is sufficient, taking
30 into account any future investment income, to fully provide,
31 in accordance with such indenture, for the defeasance of or
32 the payment of the principal of, premium, if any, and
33 interest on the Bonds secured by such indenture and on any
34 Bonds expected to be issued thereafter and all fees and costs
-68- LRB9110257SMdvam06
1 payable with respect thereto, all as certified by the
2 Director of the Bureau of the Budget. If on the last
3 business day of any month in which Bonds are outstanding
4 pursuant to the Build Illinois Bond Act, the aggregate of
5 moneys deposited in the Build Illinois Bond Account in the
6 Build Illinois Fund in such month shall be less than the
7 amount required to be transferred in such month from the
8 Build Illinois Bond Account to the Build Illinois Bond
9 Retirement and Interest Fund pursuant to Section 13 of the
10 Build Illinois Bond Act, an amount equal to such deficiency
11 shall be immediately paid from other moneys received by the
12 Department pursuant to the Tax Acts to the Build Illinois
13 Fund; provided, however, that any amounts paid to the Build
14 Illinois Fund in any fiscal year pursuant to this sentence
15 shall be deemed to constitute payments pursuant to clause (b)
16 of the first sentence of this paragraph and shall reduce the
17 amount otherwise payable for such fiscal year pursuant to
18 that clause (b). The moneys received by the Department
19 pursuant to this Act and required to be deposited into the
20 Build Illinois Fund are subject to the pledge, claim and
21 charge set forth in Section 12 of the Build Illinois Bond
22 Act.
23 Subject to payment of amounts into the Build Illinois
24 Fund as provided in the preceding paragraph or in any
25 amendment thereto hereafter enacted, the following specified
26 monthly installment of the amount requested in the
27 certificate of the Chairman of the Metropolitan Pier and
28 Exposition Authority provided under Section 8.25f of the
29 State Finance Act, but not in excess of sums designated as
30 "Total Deposit", shall be deposited in the aggregate from
31 collections under Section 9 of the Use Tax Act, Section 9 of
32 the Service Use Tax Act, Section 9 of the Service Occupation
33 Tax Act, and Section 3 of the Retailers' Occupation Tax Act
34 into the McCormick Place Expansion Project Fund in the
-69- LRB9110257SMdvam06
1 specified fiscal years.
2 Fiscal Year Total Deposit
3 1993 $0
4 1994 53,000,000
5 1995 58,000,000
6 1996 61,000,000
7 1997 64,000,000
8 1998 68,000,000
9 1999 71,000,000
10 2000 75,000,000
11 2001 80,000,000
12 2002 84,000,000
13 2003 89,000,000
14 2004 93,000,000
15 2005 97,000,000
16 2006 102,000,000
17 2007 108,000,000
18 2008 115,000,000
19 2009 120,000,000
20 2010 126,000,000
21 2011 132,000,000
22 2012 138,000,000
23 2013 and 145,000,000
24 each fiscal year
25 thereafter that bonds
26 are outstanding under
27 Section 13.2 of the
28 Metropolitan Pier and
29 Exposition Authority
30 Act, but not after fiscal year 2029.
31 Beginning July 20, 1993 and in each month of each fiscal
32 year thereafter, one-eighth of the amount requested in the
33 certificate of the Chairman of the Metropolitan Pier and
34 Exposition Authority for that fiscal year, less the amount
-70- LRB9110257SMdvam06
1 deposited into the McCormick Place Expansion Project Fund by
2 the State Treasurer in the respective month under subsection
3 (g) of Section 13 of the Metropolitan Pier and Exposition
4 Authority Act, plus cumulative deficiencies in the deposits
5 required under this Section for previous months and years,
6 shall be deposited into the McCormick Place Expansion Project
7 Fund, until the full amount requested for the fiscal year,
8 but not in excess of the amount specified above as "Total
9 Deposit", has been deposited.
10 Subject to payment of amounts into the Build Illinois
11 Fund and the McCormick Place Expansion Project Fund pursuant
12 to the preceding paragraphs or in any amendment thereto
13 hereafter enacted, each month the Department shall pay into
14 the Local Government Distributive Fund 0.4% of the net
15 revenue realized for the preceding month from the 5% general
16 rate or 0.4% of 80% of the net revenue realized for the
17 preceding month from the 6.25% general rate, as the case may
18 be, on the selling price of tangible personal property which
19 amount shall, subject to appropriation, be distributed as
20 provided in Section 2 of the State Revenue Sharing Act. No
21 payments or distributions pursuant to this paragraph shall be
22 made if the tax imposed by this Act on photoprocessing
23 products is declared unconstitutional, or if the proceeds
24 from such tax are unavailable for distribution because of
25 litigation.
26 Subject to payment of amounts into the Build Illinois
27 Fund, the McCormick Place Expansion Project to the preceding
28 paragraphs or in any amendments thereto hereafter enacted,
29 beginning July 1, 1993, the Department shall each month pay
30 into the Illinois Tax Increment Fund 0.27% of 80% of the net
31 revenue realized for the preceding month from the 6.25%
32 general rate on the selling price of tangible personal
33 property.
34 Of the remainder of the moneys received by the Department
-71- LRB9110257SMdvam06
1 pursuant to this Act, 75% thereof shall be paid into the
2 State Treasury and 25% shall be reserved in a special account
3 and used only for the transfer to the Common School Fund as
4 part of the monthly transfer from the General Revenue Fund in
5 accordance with Section 8a of the State Finance Act.
6 The Department may, upon separate written notice to a
7 taxpayer, require the taxpayer to prepare and file with the
8 Department on a form prescribed by the Department within not
9 less than 60 days after receipt of the notice an annual
10 information return for the tax year specified in the notice.
11 Such annual return to the Department shall include a
12 statement of gross receipts as shown by the retailer's last
13 Federal income tax return. If the total receipts of the
14 business as reported in the Federal income tax return do not
15 agree with the gross receipts reported to the Department of
16 Revenue for the same period, the retailer shall attach to his
17 annual return a schedule showing a reconciliation of the 2
18 amounts and the reasons for the difference. The retailer's
19 annual return to the Department shall also disclose the cost
20 of goods sold by the retailer during the year covered by such
21 return, opening and closing inventories of such goods for
22 such year, costs of goods used from stock or taken from stock
23 and given away by the retailer during such year, payroll
24 information of the retailer's business during such year and
25 any additional reasonable information which the Department
26 deems would be helpful in determining the accuracy of the
27 monthly, quarterly or annual returns filed by such retailer
28 as provided for in this Section.
29 If the annual information return required by this Section
30 is not filed when and as required, the taxpayer shall be
31 liable as follows:
32 (i) Until January 1, 1994, the taxpayer shall be
33 liable for a penalty equal to 1/6 of 1% of the tax due
34 from such taxpayer under this Act during the period to be
-72- LRB9110257SMdvam06
1 covered by the annual return for each month or fraction
2 of a month until such return is filed as required, the
3 penalty to be assessed and collected in the same manner
4 as any other penalty provided for in this Act.
5 (ii) On and after January 1, 1994, the taxpayer
6 shall be liable for a penalty as described in Section 3-4
7 of the Uniform Penalty and Interest Act.
8 The chief executive officer, proprietor, owner or highest
9 ranking manager shall sign the annual return to certify the
10 accuracy of the information contained therein. Any person
11 who willfully signs the annual return containing false or
12 inaccurate information shall be guilty of perjury and
13 punished accordingly. The annual return form prescribed by
14 the Department shall include a warning that the person
15 signing the return may be liable for perjury.
16 The provisions of this Section concerning the filing of
17 an annual information return do not apply to a retailer who
18 is not required to file an income tax return with the United
19 States Government.
20 As soon as possible after the first day of each month,
21 upon certification of the Department of Revenue, the
22 Comptroller shall order transferred and the Treasurer shall
23 transfer from the General Revenue Fund to the Motor Fuel Tax
24 Fund an amount equal to 1.7% of 80% of the net revenue
25 realized under this Act for the second preceding month.
26 Beginning April 1, 2000, this transfer is no longer required
27 and shall not be made.
28 Net revenue realized for a month shall be the revenue
29 collected by the State pursuant to this Act, less the amount
30 paid out during that month as refunds to taxpayers for
31 overpayment of liability.
32 For greater simplicity of administration, manufacturers,
33 importers and wholesalers whose products are sold at retail
34 in Illinois by numerous retailers, and who wish to do so, may
-73- LRB9110257SMdvam06
1 assume the responsibility for accounting and paying to the
2 Department all tax accruing under this Act with respect to
3 such sales, if the retailers who are affected do not make
4 written objection to the Department to this arrangement.
5 Any person who promotes, organizes, provides retail
6 selling space for concessionaires or other types of sellers
7 at the Illinois State Fair, DuQuoin State Fair, county fairs,
8 local fairs, art shows, flea markets and similar exhibitions
9 or events, including any transient merchant as defined by
10 Section 2 of the Transient Merchant Act of 1987, is required
11 to file a report with the Department providing the name of
12 the merchant's business, the name of the person or persons
13 engaged in merchant's business, the permanent address and
14 Illinois Retailers Occupation Tax Registration Number of the
15 merchant, the dates and location of the event and other
16 reasonable information that the Department may require. The
17 report must be filed not later than the 20th day of the month
18 next following the month during which the event with retail
19 sales was held. Any person who fails to file a report
20 required by this Section commits a business offense and is
21 subject to a fine not to exceed $250.
22 Any person engaged in the business of selling tangible
23 personal property at retail as a concessionaire or other type
24 of seller at the Illinois State Fair, county fairs, art
25 shows, flea markets and similar exhibitions or events, or any
26 transient merchants, as defined by Section 2 of the Transient
27 Merchant Act of 1987, may be required to make a daily report
28 of the amount of such sales to the Department and to make a
29 daily payment of the full amount of tax due. The Department
30 shall impose this requirement when it finds that there is a
31 significant risk of loss of revenue to the State at such an
32 exhibition or event. Such a finding shall be based on
33 evidence that a substantial number of concessionaires or
34 other sellers who are not residents of Illinois will be
-74- LRB9110257SMdvam06
1 engaging in the business of selling tangible personal
2 property at retail at the exhibition or event, or other
3 evidence of a significant risk of loss of revenue to the
4 State. The Department shall notify concessionaires and other
5 sellers affected by the imposition of this requirement. In
6 the absence of notification by the Department, the
7 concessionaires and other sellers shall file their returns as
8 otherwise required in this Section.
9 (Source: P.A. 90-491, eff. 1-1-99; 90-612, eff. 7-8-98;
10 91-37, eff. 7-1-99; 91-51, eff. 6-30-99; 91-101, eff.
11 7-12-99; 91-541, eff. 8-13-99; revised 9-29-99.)
12 Section 22. The Motor Fuel Tax Law is amended by
13 changing Section 13a as follows:
14 (35 ILCS 505/13a) (from Ch. 120, par. 429a)
15 Sec. 13a. (1) A tax is hereby imposed upon the use of
16 motor fuel upon highways of this State by commercial motor
17 vehicles. The tax shall be comprised of 2 parts. Part (a)
18 shall be at the rate established by Section 2 of this Act, as
19 heretofore or hereafter amended. Part (b) shall be at the
20 rate established by subsection (2) of this Section as now or
21 hereafter amended.
22 (2) A rate shall be established by the Department as of
23 January 1 of each year using the average "selling price", as
24 defined in the Retailers' Occupation Tax Act, per gallon of
25 motor fuel sold in this State during the previous 12 months
26 and multiplying it by 1.25% 6 1/4% to determine the cents per
27 gallon rate. If, as a result of the provisions of this
28 amendatory Act of the 91st General Assembly, the rate of tax
29 imposed on the sale of motor fuel and gasohol by the
30 Retailers' Occupation Tax Act returns to 6.25%, then a rate
31 shall be established by the Department as of January 1 of
32 each year using the average "selling price", as defined in
-75- LRB9110257SMdvam06
1 the Retailers' Occupation Tax Act, per gallon of motor fuel
2 sold in this State during the previous 12 months and
3 multiplying it by 6.25% to determine the cents per gallon
4 rate.
5 (Source: P.A. 88-480.)
6 Section 25. The Counties Code is amended by changing
7 Sections 5-1006, 5-1006.5, 5-1007, and 5-1035.1 as follows:
8 (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
9 Sec. 5-1006. Home Rule County Retailers' Occupation Tax
10 Law. Any county that is a home rule unit may impose a tax
11 upon all persons engaged in the business of selling tangible
12 personal property, other than an item of tangible personal
13 property titled or registered with an agency of this State's
14 government, at retail in the county on the gross receipts
15 from such sales made in the course of their business. If
16 imposed, this tax shall only be imposed in 1/4% increments.
17 On and after September 1, 1991, this additional tax may not
18 be imposed on the sales of food for human consumption which
19 is to be consumed off the premises where it is sold (other
20 than alcoholic beverages, soft drinks and food which 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. The tax imposed by a home rule county pursuant
25 to this Section and all civil penalties that may be assessed
26 as an incident thereof shall be collected and enforced by the
27 State Department of Revenue. The certificate of registration
28 that is issued by the Department to a retailer under the
29 Retailers' Occupation Tax Act shall permit the retailer to
30 engage in a business that is taxable under any ordinance or
31 resolution enacted pursuant to this Section without
32 registering separately with the Department under such
-76- LRB9110257SMdvam06
1 ordinance or resolution or under this Section. The
2 Department shall have full power to administer and enforce
3 this Section; to collect all taxes and penalties due
4 hereunder; to dispose of taxes and penalties so collected in
5 the manner hereinafter provided; and to determine all rights
6 to credit memoranda arising on account of the erroneous
7 payment of tax or penalty hereunder. In the administration
8 of, and compliance with, this Section, the Department and
9 persons who are subject to this Section shall have the same
10 rights, remedies, privileges, immunities, powers and duties,
11 and be subject to the same conditions, restrictions,
12 limitations, penalties and definitions of terms, and employ
13 the same modes of procedure, as are prescribed in Sections 1,
14 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in
15 respect to all provisions therein other than the State rate
16 of tax), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
17 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
18 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
19 Penalty and Interest Act, as fully as if those provisions
20 were set forth herein.
21 No tax may be imposed by a home rule county pursuant to
22 this Section unless the county also imposes a tax at the same
23 rate pursuant to Section 5-1007.
24 A home rule county that has not imposed a tax under this
25 Section on the sale of motor fuel or gasohol before the
26 effective date of this amendatory Act of the 91st General
27 Assembly shall not impose such a tax on or after that date. A
28 home rule county that has imposed a tax under this Section on
29 the sale of motor fuel or gasohol before the effective date
30 of this amendatory Act of the 91st General Assembly shall not
31 increase the rate of the tax on or after that date. If, as a
32 result of the provisions of this amendatory Act of the 91st
33 General Assembly, the rate of tax imposed on the sale of
34 motor fuel and gasohol by the Retailers' Occupation Tax Act
-77- LRB9110257SMdvam06
1 returns to 6.25%, then the prohibition against imposing a tax
2 on the sale of motor fuel and gasohol and the prohibition
3 against an increase in the rate of any tax already imposed on
4 the sale of motor fuel and gasohol are no longer in effect.
5 This amendatory Act of the 91st General Assembly is a denial
6 and limitation of home rule powers to tax under subsection
7 (g) of Section 6 of Article VII of the Illinois Constitution.
8 Persons subject to any tax imposed pursuant to the
9 authority granted in this Section may reimburse themselves
10 for their seller's tax liability hereunder by separately
11 stating such tax as an additional charge, which charge may be
12 stated in combination, in a single amount, with State tax
13 which sellers are required to collect under the Use Tax Act,
14 pursuant to such bracket schedules as the Department may
15 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 home rule county retailers' occupation
23 tax fund.
24 The Department shall forthwith pay over to the State
25 Treasurer, ex officio, as trustee, all taxes and penalties
26 collected hereunder. 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 named counties, the counties to be those from which retailers
30 have paid taxes or penalties hereunder to the Department
31 during the second preceding calendar month. The amount to be
32 paid to each county shall be the amount (not including credit
33 memoranda) collected hereunder during the second preceding
34 calendar month by the Department plus an amount the
-78- LRB9110257SMdvam06
1 Department determines is necessary to offset any amounts that
2 were erroneously paid to a different taxing body, and not
3 including an amount equal to the amount of refunds made
4 during the second preceding calendar month by the Department
5 on behalf of such county, and not including any amount which
6 the Department determines is necessary to offset any amounts
7 which were payable to a different taxing body but were
8 erroneously paid to the county. Within 10 days after receipt,
9 by the Comptroller, of the disbursement certification to the
10 counties provided for in this Section to be given to the
11 Comptroller by the Department, the Comptroller shall cause
12 the orders to be drawn for the respective amounts in
13 accordance with the directions contained in the
14 certification.
15 In addition to the disbursement required by the preceding
16 paragraph, an allocation shall be made in March of each year
17 to each county that received more than $500,000 in
18 disbursements under the preceding paragraph in the preceding
19 calendar year. The allocation shall be in an amount equal to
20 the average monthly distribution made to each such county
21 under the preceding paragraph during the preceding calendar
22 year (excluding the 2 months of highest receipts). The
23 distribution made in March of each year subsequent to the
24 year in which an allocation was made pursuant to this
25 paragraph and the preceding paragraph shall be reduced by the
26 amount allocated and disbursed under this paragraph in the
27 preceding calendar year. The Department shall prepare and
28 certify to the Comptroller for disbursement the allocations
29 made in accordance with this paragraph.
30 For the purpose of determining the local governmental
31 unit whose tax is applicable, a retail sale by a producer of
32 coal or other mineral mined in Illinois is a sale at retail
33 at the place where the coal or other mineral mined in
34 Illinois is extracted from the earth. This paragraph does
-79- LRB9110257SMdvam06
1 not apply to coal or other mineral when it is delivered or
2 shipped by the seller to the purchaser at a point outside
3 Illinois so that the sale is exempt under the United States
4 Constitution as a sale in interstate or foreign commerce.
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. Beginning April 1, 1998,
29 an ordinance or resolution imposing or discontinuing the tax
30 hereunder or effecting a change in the rate thereof shall
31 either (i) be adopted and a certified copy thereof filed with
32 the Department on or before the first day of April, whereupon
33 the Department shall proceed to administer and enforce this
34 Section as of the first day of July next following the
-80- LRB9110257SMdvam06
1 adoption and filing; or (ii) be adopted and a certified copy
2 thereof filed with the Department on or before the first day
3 of October, whereupon the Department shall proceed to
4 administer and enforce this Section as of the first day of
5 January next following the adoption and filing.
6 When certifying the amount of a monthly disbursement to a
7 county under this Section, the Department shall increase or
8 decrease such amount by an amount necessary to offset any
9 misallocation of previous disbursements. The offset amount
10 shall be the amount erroneously disbursed within the previous
11 6 months from the time a misallocation is discovered.
12 This Section shall be known and may be cited as the Home
13 Rule County Retailers' Occupation Tax Law.
14 (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
15 (55 ILCS 5/5-1006.5)
16 Sec. 5-1006.5. Special County Retailers' Occupation Tax
17 For Public Safety.
18 (a) The county board of any county may impose a tax upon
19 all persons engaged in the business of selling tangible
20 personal property, other than personal property titled or
21 registered with an agency of this State's government, at
22 retail in the county on the gross receipts from the sales
23 made in the course of business to provide revenue to be used
24 exclusively for public safety purposes in that county, if a
25 proposition for the tax has been submitted to the electors of
26 that county and approved by a majority of those voting on the
27 question. If imposed, this tax shall be imposed only in
28 one-quarter percent increments. By resolution, the county
29 board may order the proposition to be submitted at any
30 election. The county clerk shall certify the question to the
31 proper election authority, who shall submit the proposition
32 at an election in accordance with the general election law.
33 The proposition shall be in substantially the following
-81- LRB9110257SMdvam06
1 form:
2 "Shall (name of county) be authorized to impose a
3 public safety tax at the rate of .... upon all persons
4 engaged in the business of selling tangible personal
5 property at retail in the county on gross receipts from
6 the sales made in the course of their business to be used
7 for crime prevention, detention, and other public safety
8 purposes?"
9 Votes shall be recorded as Yes or No. If a majority of the
10 electors voting on the proposition vote in favor of it, the
11 county may impose the tax.
12 This additional tax may not be imposed on the sales of
13 food for human consumption that is to be consumed off the
14 premises where it is sold (other than alcoholic beverages,
15 soft drinks, and food which has been prepared for immediate
16 consumption) and prescription and non-prescription medicines,
17 drugs, medical appliances and insulin, urine testing
18 materials, syringes, and needles used by diabetics. The tax
19 imposed by a county under this Section and all civil
20 penalties that may be assessed as an incident of the tax
21 shall be collected and enforced by the Illinois Department of
22 Revenue. The certificate of registration that is issued by
23 the Department to a retailer under the Retailers' Occupation
24 Tax Act shall permit the retailer to engage in a business
25 that is taxable without registering separately with the
26 Department under an ordinance or resolution under this
27 Section. The Department has full power to administer and
28 enforce this Section, to collect all taxes and penalties due
29 under this Section, to dispose of taxes and penalties so
30 collected in the manner provided in this Section, and to
31 determine all rights to credit memoranda arising on account
32 of the erroneous payment of a tax or penalty under this
33 Section. In the administration of and compliance with this
34 Section, the Department and persons who are subject to this
-82- LRB9110257SMdvam06
1 Section shall (i) have the same rights, remedies, privileges,
2 immunities, powers, and duties, (ii) be subject to the same
3 conditions, restrictions, limitations, penalties, and
4 definitions of terms, and (iii) employ the same modes of
5 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
6 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to
7 all provisions contained in those Sections other than the
8 State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except
9 provisions relating to transaction returns and quarter
10 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
11 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13
12 of the Retailers' Occupation Tax Act and Section 3-7 of the
13 Uniform Penalty and Interest Act as if those provisions were
14 set forth in this Section.
15 A county that has not imposed a tax under this subsection
16 on the sale of motor fuel or gasohol before the effective
17 date of this amendatory Act of the 91st General Assembly
18 shall not impose such a tax on or after that date. A county
19 that has imposed a tax under this subsection on the sale of
20 motor fuel or gasohol before the effective date of this
21 amendatory Act of the 91st General Assembly shall not
22 increase the rate of the tax on or after that date. If, as a
23 result of the provisions of this amendatory Act of the 91st
24 General Assembly, the rate of tax imposed on the sale of
25 motor fuel and gasohol by the Retailers' Occupation Tax Act
26 returns to 6.25%, then the prohibition against imposing a tax
27 on the sale of motor fuel and gasohol and the prohibition
28 against an increase in the rate of any tax already imposed on
29 the sale of motor fuel and gasohol are no longer in effect.
30 Persons subject to any tax imposed under the authority
31 granted in this Section may reimburse themselves for their
32 sellers' tax liability by separately stating the tax as an
33 additional charge, which charge may be stated in combination,
34 in a single amount, with State tax which sellers are required
-83- LRB9110257SMdvam06
1 to collect under the Use Tax Act, pursuant to such bracketed
2 schedules as the Department may prescribe.
3 Whenever the Department determines that a refund should
4 be made under this Section to a claimant instead of issuing a
5 credit memorandum, the Department shall notify the State
6 Comptroller, who shall cause the order to be drawn for the
7 amount specified and to the person named in the notification
8 from the Department. The refund shall be paid by the State
9 Treasurer out of the County Public Safety Retailers'
10 Occupation Tax Fund.
11 (b) If a tax has been imposed under subsection (a), a
12 service occupation tax shall also be imposed at the same rate
13 upon all persons engaged, in the county, in the business of
14 making sales of service, who, as an incident to making those
15 sales of service, transfer tangible personal property within
16 the county as an incident to a sale of service. This tax may
17 not be imposed on sales of food for human consumption that is
18 to be consumed off the premises where it is sold (other than
19 alcoholic beverages, soft drinks, and food prepared for
20 immediate consumption) and prescription and non-prescription
21 medicines, drugs, medical appliances and insulin, urine
22 testing materials, syringes, and needles used by diabetics.
23 The tax imposed under this subsection and all civil penalties
24 that may be assessed as an incident thereof shall be
25 collected and enforced by the Department of Revenue. The
26 Department has full power to administer and enforce this
27 subsection; to collect all taxes and penalties due hereunder;
28 to dispose of taxes and penalties so collected in the manner
29 hereinafter provided; and to determine all rights to credit
30 memoranda arising on account of the erroneous payment of tax
31 or penalty hereunder. In the administration of, and
32 compliance with this subsection, the Department and persons
33 who are subject to this paragraph shall (i) have the same
34 rights, remedies, privileges, immunities, powers, and duties,
-84- LRB9110257SMdvam06
1 (ii) be subject to the same conditions, restrictions,
2 limitations, penalties, exclusions, exemptions, and
3 definitions of terms, and (iii) employ the same modes of
4 procedure as are prescribed in Sections 2 (except that the
5 reference to State in the definition of supplier maintaining
6 a place of business in this State shall mean the county), 2a,
7 2b, 2c, 3 through 3-50 (in respect to all provisions therein
8 other than the State rate of tax), 4 (except that the
9 reference to the State shall be to the county), 5, 7, 8
10 (except that the jurisdiction to which the tax shall be a
11 debt to the extent indicated in that Section 8 shall be the
12 county), 9 (except as to the disposition of taxes and
13 penalties collected), 10, 11, 12 (except the reference
14 therein to Section 2b of the Retailers' Occupation Tax Act),
15 13 (except that any reference to the State shall mean the
16 county), Section 15, 16, 17, 18, 19 and 20 of the Service
17 Occupation Tax Act and Section 3-7 of the Uniform Penalty and
18 Interest Act, as fully as if those provisions were set forth
19 herein.
20 A county that has not imposed a tax under this subsection
21 on the selling price of motor fuel or gasohol before the
22 effective date of this amendatory Act of the 91st General
23 Assembly shall not impose such a tax on or after that date.
24 A county that has imposed a tax under this subsection on the
25 selling price of motor fuel or gasohol before the effective
26 date of this amendatory Act of the 91st General Assembly
27 shall not increase the rate of the tax on or after that date.
28 If, as a result of the provisions of this amendatory Act of
29 the 91st General Assembly, the rate of tax imposed on the
30 sale of motor fuel and gasohol by the Retailers' Occupation
31 Tax Act returns to 6.25%, then the prohibition against
32 imposing a tax on the sale of motor fuel and gasohol and the
33 prohibition against an increase in the rate of any tax
34 already imposed on the sale of motor fuel and gasohol are no
-85- LRB9110257SMdvam06
1 longer in effect.
2 Persons subject to any tax imposed under the authority
3 granted in this subsection may reimburse themselves for their
4 serviceman's tax liability by separately stating the tax as
5 an additional charge, which charge may be stated in
6 combination, in a single amount, with State tax that
7 servicemen are authorized to collect under the Service Use
8 Tax Act, in accordance with such bracket schedules as the
9 Department may prescribe.
10 Whenever the Department determines that a refund should
11 be made under this subsection to a claimant instead of
12 issuing a credit memorandum, the Department shall notify the
13 State Comptroller, who shall cause the warrant to be drawn
14 for the amount specified, and to the person named, in the
15 notification from the Department. The refund shall be paid
16 by the State Treasurer out of the County Public Safety
17 Retailers' Occupation Fund.
18 Nothing in this subsection shall be construed to
19 authorize the county to impose a tax upon the privilege of
20 engaging in any business which under the Constitution of the
21 United States may not be made the subject of taxation by the
22 State.
23 (c) The Department shall immediately pay over to the
24 State Treasurer, ex officio, as trustee, all taxes and
25 penalties collected under this Section to be deposited into
26 the County Public Safety Retailers' Occupation Tax Fund,
27 which shall be an unappropriated trust fund held outside of
28 the State treasury. 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 the counties from which retailers have paid taxes or
32 penalties to the Department during the second preceding
33 calendar month. The amount to be paid to each county shall
34 be the amount (not including credit memoranda) collected
-86- LRB9110257SMdvam06
1 under this Section during the second preceding calendar month
2 by the Department plus an amount the Department determines is
3 necessary to offset any amounts that were erroneously paid to
4 a different taxing body, and not including (i) an amount
5 equal to the amount of refunds made during the second
6 preceding calendar month by the Department on behalf of the
7 county and (ii) any amount that the Department determines is
8 necessary to offset any amounts that were payable to a
9 different taxing body but were erroneously paid to the
10 county. Within 10 days after receipt by the Comptroller of
11 the disbursement certification to the counties provided for
12 in this Section to be given to the Comptroller by the
13 Department, the Comptroller shall cause the orders to be
14 drawn for the respective amounts in accordance with
15 directions contained in the certification.
16 In addition to the disbursement required by the preceding
17 paragraph, an allocation shall be made in March of each year
18 to each county that received more than $500,000 in
19 disbursements under the preceding paragraph in the preceding
20 calendar year. The allocation shall be in an amount equal to
21 the average monthly distribution made to each such county
22 under the preceding paragraph during the preceding calendar
23 year (excluding the 2 months of highest receipts). The
24 distribution made in March of each year subsequent to the
25 year in which an allocation was made pursuant to this
26 paragraph and the preceding paragraph shall be reduced by the
27 amount allocated and disbursed under this paragraph in the
28 preceding calendar year. The Department shall prepare and
29 certify to the Comptroller for disbursement the allocations
30 made in accordance with this paragraph.
31 (d) For the purpose of determining the local
32 governmental unit whose tax is applicable, a retail sale by a
33 producer of coal or another mineral mined in Illinois is a
34 sale at retail at the place where the coal or other mineral
-87- LRB9110257SMdvam06
1 mined in Illinois is extracted from the earth. This
2 paragraph does not apply to coal or another mineral when it
3 is delivered or shipped by the seller to the purchaser at a
4 point outside Illinois so that the sale is exempt under the
5 United States Constitution as a sale in interstate or foreign
6 commerce.
7 (e) Nothing in this Section shall be construed to
8 authorize a county to impose a tax upon the privilege of
9 engaging in any business that under the Constitution of the
10 United States may not be made the subject of taxation by this
11 State.
12 (e-5) If a county imposes a tax under this Section, the
13 county board may, by ordinance, discontinue or lower the rate
14 of the tax. If the county board lowers the tax rate or
15 discontinues the tax, a referendum must be held in accordance
16 with subsection (a) of this Section in order to increase the
17 rate of the tax or to reimpose the discontinued tax.
18 (f) Beginning April 1, 1998, the results of any election
19 authorizing a proposition to impose a tax under this Section
20 or effecting a change in the rate of tax, or any ordinance
21 lowering the rate or discontinuing the tax, shall be
22 certified by the county clerk and filed with the Illinois
23 Department of Revenue either (i) on or before the first day
24 of April, whereupon the Department shall proceed to
25 administer and enforce the tax as of the first day of July
26 next following the filing; or (ii) on or before the first day
27 of October, whereupon the Department shall proceed to
28 administer and enforce the tax as of the first day of January
29 next following the filing.
30 (g) When certifying the amount of a monthly disbursement
31 to a county under this Section, the Department shall increase
32 or decrease the amounts by an amount necessary to offset any
33 miscalculation of previous disbursements. The offset amount
34 shall be the amount erroneously disbursed within the previous
-88- LRB9110257SMdvam06
1 6 months from the time a miscalculation is discovered.
2 (h) This Section may be cited as the "Special County
3 Occupation Tax For Public Safety Law".
4 (i) For purposes of this Section, "public safety"
5 includes but is not limited to fire fighting, police,
6 medical, ambulance, or other emergency services.
7 (j) This amendatory Act of the 91st General Assembly is
8 a denial and limitation of home rule powers to tax under
9 subsection (g) of Section 6 of Article VII of the Illinois
10 Constitution.
11 (Source: P.A. 89-107, eff. 1-1-96; 89-718, eff. 3-7-97;
12 90-190, eff. 7-24-97; 90-267, eff. 7-30-97; 90-552, eff.
13 12-12-97; 90-562, eff. 12-16-97; 90-655, eff. 7-30-98;
14 90-689, eff. 7-31-98.)
15 (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
16 Sec. 5-1007. Home Rule County Service Occupation Tax
17 Law. The corporate authorities of a home rule county may
18 impose a tax upon all persons engaged, in such county, in the
19 business of making sales of service at the same rate of tax
20 imposed pursuant to Section 5-1006 of the selling price of
21 all tangible personal property transferred by such servicemen
22 either in the form of tangible personal property or in the
23 form of real estate as an incident to a sale of service. If
24 imposed, such tax shall only be imposed in 1/4% increments.
25 On and after September 1, 1991, this additional tax may not
26 be imposed on the sales of food for human consumption which
27 is to be consumed off the premises where it is sold (other
28 than alcoholic beverages, soft drinks and food which has been
29 prepared for immediate consumption) and prescription and
30 nonprescription medicines, drugs, medical appliances and
31 insulin, urine testing materials, syringes and needles used
32 by diabetics. The tax imposed by a home rule county pursuant
33 to this Section and all civil penalties that may be assessed
-89- LRB9110257SMdvam06
1 as an incident thereof shall be collected and enforced by the
2 State Department of Revenue. The certificate of registration
3 which is issued by the Department to a retailer under the
4 Retailers' Occupation Tax Act or under the Service Occupation
5 Tax Act shall permit such registrant to engage in a business
6 which is taxable under any ordinance or resolution enacted
7 pursuant to this Section without registering separately with
8 the Department under such ordinance or resolution or under
9 this Section. The Department shall have full power to
10 administer and enforce this Section; to collect all taxes and
11 penalties due hereunder; to dispose of taxes and penalties so
12 collected in the manner hereinafter provided; and to
13 determine all rights to credit memoranda arising on account
14 of the erroneous payment of tax or penalty hereunder. In the
15 administration of, and compliance with, this Section the
16 Department and persons who are subject to this Section shall
17 have the same rights, remedies, privileges, immunities,
18 powers and duties, and be subject to the same conditions,
19 restrictions, limitations, penalties and definitions of
20 terms, and employ the same modes of procedure, as are
21 prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
22 respect to all provisions therein other than the State rate
23 of tax), 4 (except that the reference to the State shall be
24 to the taxing county), 5, 7, 8 (except that the jurisdiction
25 to which the tax shall be a debt to the extent indicated in
26 that Section 8 shall be the taxing county), 9 (except as to
27 the disposition of taxes and penalties collected, and except
28 that the returned merchandise credit for this county tax may
29 not be taken against any State tax), 10, 11, 12 (except the
30 reference therein to Section 2b of the Retailers' Occupation
31 Tax Act), 13 (except that any reference to the State shall
32 mean the taxing county), the first paragraph of Section 15,
33 16, 17, 18, 19 and 20 of the Service Occupation Tax Act and
34 Section 3-7 of the Uniform Penalty and Interest Act, as fully
-90- LRB9110257SMdvam06
1 as if those provisions were set forth herein.
2 No tax may be imposed by a home rule county pursuant to
3 this Section unless such county also imposes a tax at the
4 same rate pursuant to Section 5-1006.
5 A home rule county that has not imposed a tax under this
6 Section on the selling price of motor fuel or gasohol before
7 the effective date of this amendatory Act of the 91st General
8 Assembly shall not impose such a tax on or after that date. A
9 home rule county that has imposed a tax under this Section on
10 the sale of motor fuel or gasohol before the effective date
11 of this amendatory Act of the 91st General Assembly shall not
12 increase the rate of the tax on or after that date. If, as a
13 result of the provisions of this amendatory Act of the 91st
14 General Assembly, the rate of tax imposed on the sale of
15 motor fuel and gasohol by the Retailers' Occupation Tax Act
16 returns to 6.25%, then the prohibition against imposing a tax
17 on the sale of motor fuel and gasohol and the prohibition
18 against an increase in the rate of any tax already imposed on
19 the sale of motor fuel and gasohol are no longer in effect.
20 This amendatory Act of the 91st General Assembly is a denial
21 and limitation of home rule powers to tax under subsection
22 (g) of Section 6 of Article VII of the Illinois Constitution.
23 Persons subject to any tax imposed pursuant to the
24 authority granted in this Section may reimburse themselves
25 for their serviceman's tax liability hereunder by separately
26 stating such tax as an additional charge, which charge may be
27 stated in combination, in a single amount, with State tax
28 which servicemen are authorized to collect under the Service
29 Use Tax Act, pursuant to such bracket schedules as the
30 Department may prescribe.
31 Whenever the Department determines that a refund should
32 be made under this Section to a claimant instead of issuing
33 credit memorandum, the Department shall notify the State
34 Comptroller, who shall cause the order to be drawn for the
-91- LRB9110257SMdvam06
1 amount specified, and to the person named, in such
2 notification from the Department. Such refund shall be paid
3 by the State Treasurer out of the home rule county retailers'
4 occupation tax fund.
5 The Department shall forthwith pay over to the State
6 Treasurer, ex-officio, as trustee, all taxes and penalties
7 collected hereunder. On or before the 25th day of each
8 calendar month, the Department shall prepare and certify to
9 the Comptroller the disbursement of stated sums of money to
10 named counties, the counties to be those from which suppliers
11 and servicemen have paid taxes or penalties hereunder to the
12 Department during the second preceding calendar month. The
13 amount to be paid to each county shall be the amount (not
14 including credit memoranda) collected hereunder during the
15 second preceding calendar month by the Department, and not
16 including an amount equal to the amount of refunds made
17 during the second preceding calendar month by the Department
18 on behalf of such county. Within 10 days after receipt, by
19 the Comptroller, of the disbursement certification to the
20 counties provided for in this Section to be given to the
21 Comptroller by the Department, the Comptroller shall cause
22 the orders to be drawn for the respective amounts in
23 accordance with the directions contained in such
24 certification.
25 In addition to the disbursement required by the preceding
26 paragraph, an allocation shall be made in each year to each
27 county which received more than $500,000 in disbursements
28 under the preceding paragraph in the preceding calendar year.
29 The allocation shall be in an amount equal to the average
30 monthly distribution made to each such county under the
31 preceding paragraph during the preceding calendar year
32 (excluding the 2 months of highest receipts). The
33 distribution made in March of each year subsequent to the
34 year in which an allocation was made pursuant to this
-92- LRB9110257SMdvam06
1 paragraph and the preceding paragraph shall be reduced by the
2 amount allocated and disbursed under this paragraph in the
3 preceding calendar year. The Department shall prepare and
4 certify to the Comptroller for disbursement the allocations
5 made in accordance with this paragraph.
6 Nothing in this Section shall be construed to authorize a
7 county to impose a tax upon the privilege of engaging in any
8 business which under the Constitution of the United States
9 may not be made the subject of taxation by this State.
10 An ordinance or resolution imposing or discontinuing a
11 tax hereunder or effecting a change in the rate thereof shall
12 be adopted and a certified copy thereof filed with the
13 Department on or before the first day of June, whereupon the
14 Department shall proceed to administer and enforce this
15 Section as of the first day of September next following such
16 adoption and filing. Beginning January 1, 1992, an ordinance
17 or resolution imposing or discontinuing the tax hereunder or
18 effecting a change in the rate thereof shall be adopted and a
19 certified copy thereof filed with the Department on or before
20 the first day of July, whereupon the Department shall proceed
21 to administer and enforce this Section as of the first day of
22 October next following such adoption and filing. Beginning
23 January 1, 1993, an ordinance or resolution imposing or
24 discontinuing the tax hereunder or effecting a change in the
25 rate thereof shall be adopted and a certified copy thereof
26 filed with the Department on or before the first day of
27 October, whereupon the Department shall proceed to administer
28 and enforce this Section as of the first day of January next
29 following such adoption and filing. Beginning April 1, 1998,
30 an ordinance or resolution imposing or discontinuing the tax
31 hereunder or effecting a change in the rate thereof shall
32 either (i) be adopted and a certified copy thereof filed with
33 the Department on or before the first day of April, whereupon
34 the Department shall proceed to administer and enforce this
-93- LRB9110257SMdvam06
1 Section as of the first day of July next following the
2 adoption and filing; or (ii) be adopted and a certified copy
3 thereof filed with the Department on or before the first day
4 of October, whereupon the Department shall proceed to
5 administer and enforce this Section as of the first day of
6 January next following the adoption and filing.
7 This Section shall be known and may be cited as the Home
8 Rule County Service Occupation Tax Law.
9 (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
10 (55 ILCS 5/5-1035.1) (from Ch. 34, par. 5-1035.1)
11 Sec. 5-1035.1. County Motor Fuel Tax Law. The county
12 board of the counties of DuPage, Kane and McHenry may, by an
13 ordinance or resolution adopted by an affirmative vote of a
14 majority of the members elected or appointed to the county
15 board, impose a tax upon all persons engaged in the county in
16 the business of selling motor fuel, as now or hereafter
17 defined in the Motor Fuel Tax Law, at retail for the
18 operation of motor vehicles upon public highways or for the
19 operation of recreational watercraft upon waterways. Kane
20 County may exempt diesel fuel from the tax imposed pursuant
21 to this Section. The tax may be imposed, in half-cent
22 increments, at a rate not exceeding 4 cents per gallon of
23 motor fuel sold at retail within the county for the purpose
24 of use or consumption and not for the purpose of resale. The
25 proceeds from the tax shall be used by the county solely for
26 the purpose of operating, constructing and improving public
27 highways and waterways, and acquiring real property and
28 right-of-ways for public highways and waterways within the
29 county imposing the tax.
30 A county that has not imposed a tax under this Section
31 before the effective date of this amendatory Act of the 91st
32 General Assembly shall not impose such a tax on or after that
33 date. A county that has imposed a tax under this Section
-94- LRB9110257SMdvam06
1 before the effective date of this amendatory Act of the 91st
2 General Assembly shall not increase the rate of the tax on or
3 after that date. If, as a result of the provisions of this
4 amendatory Act of the 91st General Assembly, the rate of tax
5 imposed on the sale of motor fuel and gasohol by the
6 Retailers' Occupation Tax Act returns to 6.25%, then the
7 prohibition against imposing a tax on the sale of motor fuel
8 and gasohol and the prohibition against an increase in the
9 rate of any tax already imposed on the sale of motor fuel and
10 gasohol are no longer in effect.
11 A tax imposed pursuant to this Section, and all civil
12 penalties that may be assessed as an incident thereof, shall
13 be administered, collected and enforced by the Illinois
14 Department of Revenue in the same manner as the tax imposed
15 under the Retailers' Occupation Tax Act, as now or hereafter
16 amended, insofar as may be practicable; except that in the
17 event of a conflict with the provisions of this Section, this
18 Section shall control. The Department of Revenue shall have
19 full power: to administer and enforce this Section; to
20 collect all taxes and penalties due hereunder; to dispose of
21 taxes and penalties so collected in the manner hereinafter
22 provided; and to determine all rights to credit memoranda
23 arising on account of the erroneous payment of tax or penalty
24 hereunder.
25 Whenever the Department determines that a refund shall be
26 made under this Section to a claimant instead of issuing a
27 credit memorandum, the Department shall notify the State
28 Comptroller, who shall cause the order to be drawn for the
29 amount specified, and to the person named, in the
30 notification from the Department. The refund shall be paid by
31 the State Treasurer out of the County Option Motor Fuel Tax
32 Fund.
33 The Department shall forthwith pay over to the State
34 Treasurer, ex-officio, as trustee, all taxes and penalties
-95- LRB9110257SMdvam06
1 collected hereunder, which shall be deposited into the County
2 Option Motor Fuel Tax Fund, a special fund in the State
3 Treasury which is hereby created. On or before the 25th day
4 of each calendar month, the Department shall prepare and
5 certify to the State Comptroller the disbursement of stated
6 sums of money to named counties for which taxpayers have paid
7 taxes or penalties hereunder to the Department during the
8 second preceding calendar month. The amount to be paid to
9 each county shall be the amount (not including credit
10 memoranda) collected hereunder from retailers within the
11 county during the second preceding calendar month by the
12 Department, but not including an amount equal to the amount
13 of refunds made during the second preceding calendar month by
14 the Department on behalf of the county; less the amount
15 expended during the second preceding month by the Department
16 pursuant to appropriation from the County Option Motor Fuel
17 Tax Fund for the administration and enforcement of this
18 Section, which appropriation shall not exceed $200,000 for
19 fiscal year 1990 and, for each year thereafter, shall not
20 exceed 2% of the amount deposited into the County Option
21 Motor Fuel Tax Fund during the preceding fiscal year.
22 Nothing in this Section shall be construed to authorize a
23 county to impose a tax upon the privilege of engaging in any
24 business which under the Constitution of the United States
25 may not be made the subject of taxation by this State.
26 An ordinance or resolution imposing a tax hereunder or
27 effecting a change in the rate thereof shall be effective on
28 the first day of the second calendar month next following the
29 month in which the ordinance or resolution is adopted and a
30 certified copy thereof is filed with the Department of
31 Revenue, whereupon the Department of Revenue shall proceed
32 to administer and enforce this Section on behalf of the
33 county as of the effective date of the ordinance or
34 resolution. Upon a change in rate of a tax levied hereunder,
-96- LRB9110257SMdvam06
1 or upon the discontinuance of the tax, the county board of
2 the county shall, on or not later than 5 days after the
3 effective date of the ordinance or resolution discontinuing
4 the tax or effecting a change in rate, transmit to the
5 Department of Revenue a certified copy of the ordinance or
6 resolution effecting the change or discontinuance.
7 This Section shall be known and may be cited as the
8 County Motor Fuel Tax Law.
9 (Source: P.A. 86-1028; 87-289.)
10 Section 30. The Illinois Municipal Code is amended by
11 changing Sections 8-11-1, 8-11-1.1, 8-11-5, 8-11-6, and
12 8-11-15 as follows:
13 (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
14 Sec. 8-11-1. Home Rule Municipal Retailers' Occupation
15 Tax Act. The corporate authorities of a home rule
16 municipality may impose a tax upon all persons engaged in the
17 business of selling tangible personal property, other than an
18 item of tangible personal property titled or registered with
19 an agency of this State's government, at retail in the
20 municipality on the gross receipts from these sales made in
21 the course of such business. If imposed, the tax shall only
22 be imposed in 1/4% increments. On and after September 1,
23 1991, this additional tax may not be imposed on the sales of
24 food for human consumption that is to be consumed off the
25 premises where it is sold (other than alcoholic beverages,
26 soft drinks and food that has been prepared for immediate
27 consumption) and prescription and nonprescription medicines,
28 drugs, medical appliances and insulin, urine testing
29 materials, syringes and needles used by diabetics. The tax
30 imposed by a home rule municipality under this Section and
31 all civil penalties that may be assessed as an incident of
32 the tax shall be collected and enforced by the State
-97- LRB9110257SMdvam06
1 Department of Revenue. The certificate of registration that
2 is issued by the Department to a retailer under the
3 Retailers' Occupation Tax Act shall permit the retailer to
4 engage in a business that is taxable under any ordinance or
5 resolution enacted pursuant to this Section without
6 registering separately with the Department under such
7 ordinance or resolution or under this Section. The
8 Department shall have full power to administer and enforce
9 this Section; to collect all taxes and penalties due
10 hereunder; to dispose of taxes and penalties so collected in
11 the manner hereinafter provided; and to determine all rights
12 to credit memoranda arising on account of the erroneous
13 payment of tax or penalty hereunder. In the administration
14 of, and compliance with, this Section the Department and
15 persons who are subject to this Section shall have the same
16 rights, remedies, privileges, immunities, powers and duties,
17 and be subject to the same conditions, restrictions,
18 limitations, penalties and definitions of terms, and employ
19 the same modes of procedure, as are prescribed in Sections 1,
20 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in
21 respect to all provisions therein other than the State rate
22 of tax), 2c, 3 (except as to the disposition of taxes and
23 penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
24 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of
25 the Retailers' Occupation Tax Act and Section 3-7 of the
26 Uniform Penalty and Interest Act, as fully as if those
27 provisions were set forth herein.
28 No tax may be imposed by a home rule municipality under
29 this Section unless the municipality also imposes a tax at
30 the same rate under Section 8-11-5 of this Act.
31 A home rule municipality that has not imposed a tax under
32 this Section on the sale of motor fuel or gasohol before the
33 effective date of this amendatory Act of the 91st General
34 Assembly shall not impose such a tax on or after that date. A
-98- LRB9110257SMdvam06
1 home rule municipality that has imposed a tax under this
2 Section on the sale of motor fuel or gasohol before the
3 effective date of this amendatory Act of the 91st General
4 Assembly shall not increase the rate of the tax on or after
5 that date. If, as a result of the provisions of this
6 amendatory Act of the 91st General Assembly, the rate of tax
7 imposed on the sale of motor fuel and gasohol by the
8 Retailers' Occupation Tax Act returns to 6.25%, then the
9 prohibition against imposing a tax on the sale of motor fuel
10 and gasohol and the prohibition against an increase in the
11 rate of any tax already imposed on the sale of motor fuel and
12 gasohol are no longer in effect. This amendatory Act of the
13 91st General Assembly is a denial and limitation of home rule
14 powers to tax under subsection (g) of Section 6 of Article
15 VII of the Illinois Constitution.
16 Persons subject to any tax imposed under the authority
17 granted in this Section may reimburse themselves for their
18 seller's tax liability hereunder by separately stating that
19 tax as an additional charge, which charge may be stated in
20 combination, in a single amount, with State tax which sellers
21 are required to collect under the Use Tax Act, pursuant to
22 such bracket schedules as the Department may prescribe.
23 Whenever the Department determines that a refund should
24 be made under this Section to a claimant instead of issuing a
25 credit memorandum, the Department shall notify the State
26 Comptroller, who shall cause the order to be drawn for the
27 amount specified and to the person named in the notification
28 from the Department. The refund shall be paid by the State
29 Treasurer out of the home rule municipal retailers'
30 occupation tax fund.
31 The Department shall immediately pay over to the State
32 Treasurer, ex officio, as trustee, all taxes and penalties
33 collected hereunder. On or before the 25th day of each
34 calendar month, the Department shall prepare and certify to
-99- LRB9110257SMdvam06
1 the Comptroller the disbursement of stated sums of money to
2 named municipalities, the municipalities to be those from
3 which retailers have paid taxes or penalties hereunder to the
4 Department during the second preceding calendar month. The
5 amount to be paid to each municipality shall be the amount
6 (not including credit memoranda) collected hereunder during
7 the second preceding calendar month by the Department plus an
8 amount the Department determines is necessary to offset any
9 amounts that were erroneously paid to a different taxing
10 body, and not including an amount equal to the amount of
11 refunds made during the second preceding calendar month by
12 the Department on behalf of such municipality, and not
13 including any amount that the Department determines is
14 necessary to offset any amounts that were payable to a
15 different taxing body but were erroneously paid to the
16 municipality. Within 10 days after receipt by the Comptroller
17 of the disbursement certification to the municipalities
18 provided for in this Section to be given to the Comptroller
19 by the Department, the Comptroller shall cause the orders to
20 be drawn for the respective amounts in accordance with the
21 directions contained in the certification.
22 In addition to the disbursement required by the preceding
23 paragraph and in order to mitigate delays caused by
24 distribution procedures, an allocation shall, if requested,
25 be made within 10 days after January 14, 1991, and in
26 November of 1991 and each year thereafter, to each
27 municipality that received more than $500,000 during the
28 preceding fiscal year, (July 1 through June 30) whether
29 collected by the municipality or disbursed by the Department
30 as required by this Section. Within 10 days after January 14,
31 1991, participating municipalities shall notify the
32 Department in writing of their intent to participate. In
33 addition, for the initial distribution, participating
34 municipalities shall certify to the Department the amounts
-100- LRB9110257SMdvam06
1 collected by the municipality for each month under its home
2 rule occupation and service occupation tax during the period
3 July 1, 1989 through June 30, 1990. The allocation within 10
4 days after January 14, 1991, shall be in an amount equal to
5 the monthly average of these amounts, excluding the 2 months
6 of highest receipts. The monthly average for the period of
7 July 1, 1990 through June 30, 1991 will be determined as
8 follows: the amounts collected by the municipality under its
9 home rule occupation and service occupation tax during the
10 period of July 1, 1990 through September 30, 1990, plus
11 amounts collected by the Department and paid to such
12 municipality through June 30, 1991, excluding the 2 months of
13 highest receipts. The monthly average for each subsequent
14 period of July 1 through June 30 shall be an amount equal to
15 the monthly distribution made to each such municipality under
16 the preceding paragraph during this period, excluding the 2
17 months of highest receipts. The distribution made in
18 November 1991 and each year thereafter under this paragraph
19 and the preceding paragraph shall be reduced by the amount
20 allocated and disbursed under this paragraph in the preceding
21 period of July 1 through June 30. The Department shall
22 prepare and certify to the Comptroller for disbursement the
23 allocations made in accordance with this paragraph.
24 For the purpose of determining the local governmental
25 unit whose tax is applicable, a retail sale by a producer of
26 coal or other mineral mined in Illinois is a sale at retail
27 at the place where the coal or other mineral mined in
28 Illinois is extracted from the earth. This paragraph does
29 not apply to coal or other mineral when it is delivered or
30 shipped by the seller to the purchaser at a point outside
31 Illinois so that the sale is exempt under the United States
32 Constitution as a sale in interstate or foreign commerce.
33 Nothing in this Section shall be construed to authorize a
34 municipality to impose a tax upon the privilege of engaging
-101- LRB9110257SMdvam06
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 Beginning April 1, 1998, an ordinance or resolution imposing
31 or discontinuing the tax hereunder or effecting a change in
32 the rate thereof shall either (i) be adopted and a certified
33 copy thereof filed with the Department on or before the first
34 day of April, whereupon the Department shall proceed to
-102- LRB9110257SMdvam06
1 administer and enforce this Section as of the first day of
2 July next following the adoption and filing; or (ii) be
3 adopted and a certified copy thereof filed with the
4 Department on or before the first day of October, whereupon
5 the Department shall proceed to administer and enforce this
6 Section as of the first day of January next following the
7 adoption and filing.
8 When certifying the amount of a monthly disbursement to a
9 municipality under this Section, the Department shall
10 increase or decrease the amount by an amount necessary to
11 offset any misallocation of previous disbursements. The
12 offset amount shall be the amount erroneously disbursed
13 within the previous 6 months from the time a misallocation is
14 discovered.
15 Any unobligated balance remaining in the Municipal
16 Retailers' Occupation Tax Fund on December 31, 1989, which
17 fund was abolished by Public Act 85-1135, and all receipts of
18 municipal tax as a result of audits of liability periods
19 prior to January 1, 1990, shall be paid into the Local
20 Government Tax Fund for distribution as provided by this
21 Section prior to the enactment of Public Act 85-1135. All
22 receipts of municipal tax as a result of an assessment not
23 arising from an audit, for liability periods prior to January
24 1, 1990, shall be paid into the Local Government Tax Fund for
25 distribution before July 1, 1990, as provided by this Section
26 prior to the enactment of Public Act 85-1135; and on and
27 after July 1, 1990, all such receipts shall be distributed as
28 provided in Section 6z-18 of the State Finance Act.
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 This Section shall be known and may be cited as the Home
33 Rule Municipal Retailers' Occupation Tax Act.
34 (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
-103- LRB9110257SMdvam06
1 (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
2 Sec. 8-11-1.1. Non-home rule municipalities; use and
3 occupation imposition of taxes.
4 (a) The corporate authorities of a non-home rule
5 municipality may, upon approval of the electors of the
6 municipality pursuant to subsection (b) of this Section,
7 impose by ordinance or resolution the 1/2 of 1% tax
8 authorized in Sections 8-11-1.3, 8-11-1.4 and 8-11-1.5 of
9 this Act.
10 A municipality that has not imposed a tax on motor fuel
11 or gasohol authorized in Sections 8-11-1.3, 8-11-1.4, and
12 8-11-1.5 before the effective date of this amendatory Act of
13 the 91st General Assembly shall not impose such a tax on or
14 after that date. A municipality that has imposed a tax on
15 motor fuel or gasohol authorized in Sections 8-11-1.3,
16 8-11-1.4, and 8-11-1.5 before the effective date of this
17 amendatory Act of the 91st General Assembly shall not
18 increase the rate of the tax on or after that date. If, as a
19 result of the provisions of this amendatory Act of the 91st
20 General Assembly, the rate of tax imposed on the sale of
21 motor fuel and gasohol by the Retailers' Occupation Tax Act
22 returns to 6.25%, then the prohibition against imposing a tax
23 on the sale of motor fuel and gasohol and the prohibition
24 against an increase in the rate of any tax already imposed on
25 the sale of motor fuel and gasohol are no longer in effect.
26 (b) The corporate authorities of the municipality may by
27 ordinance or resolution call for the submission to the
28 electors of the municipality the question of whether the
29 municipality shall impose such tax. Such question shall be
30 certified by the municipal clerk to the election authority in
31 accordance with Section 28-5 of the Election Code and shall
32 be in a form in accordance with Section 16-7 of the Election
33 Code.
34 If a majority of the electors in the municipality voting
-104- LRB9110257SMdvam06
1 upon the question vote in the affirmative, such tax shall be
2 imposed.
3 An ordinance or resolution imposing the 1/2 of 1% tax
4 hereunder or discontinuing the same shall be adopted and a
5 certified copy thereof, together with a certification that
6 the ordinance or resolution received referendum approval in
7 the case of the imposition of such tax, filed with the
8 Department of Revenue, on or before the first day of June,
9 whereupon the Department shall proceed to administer and
10 enforce the additional tax or to discontinue the tax, as the
11 case may be, as of the first day of September next following
12 such adoption and filing. Beginning January 1, 1992, an
13 ordinance or resolution imposing or discontinuing the tax
14 hereunder shall be adopted and a certified copy thereof filed
15 with the Department on or before the first day of July,
16 whereupon the Department shall proceed to administer and
17 enforce this Section as of the first day of October next
18 following such adoption and filing. Beginning January 1,
19 1993, an ordinance or resolution imposing or discontinuing
20 the tax hereunder shall be adopted and a certified copy
21 thereof filed with the Department on or before the first day
22 of October, whereupon the Department shall proceed to
23 administer and enforce this Section as of the first day of
24 January next following such adoption and filing. A non-home
25 rule municipality may file a certified copy of an ordinance
26 or resolution, with a certification that the ordinance or
27 resolution received referendum approval in the case of the
28 imposition of the tax, with the Department of Revenue, as
29 required under this Section, only after October 2, 2000.
30 (Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.)
31 (65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
32 Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
33 Act. The corporate authorities of a home rule municipality
-105- LRB9110257SMdvam06
1 may impose a tax upon all persons engaged, in such
2 municipality, in the business of making sales of service at
3 the same rate of tax imposed pursuant to Section 8-11-1, of
4 the selling price of all tangible personal property
5 transferred by such servicemen either in the form of tangible
6 personal property or in the form of real estate as an
7 incident to a sale of service. If imposed, such tax shall
8 only be imposed in 1/4% increments. On and after September 1,
9 1991, this additional tax may not be imposed on the sales of
10 food for human consumption which is to be consumed off the
11 premises where it is sold (other than alcoholic beverages,
12 soft drinks and food which has been prepared for immediate
13 consumption) and prescription and nonprescription medicines,
14 drugs, medical appliances and insulin, urine testing
15 materials, syringes and needles used by diabetics. The tax
16 imposed by a home rule municipality pursuant to this Section
17 and all civil penalties that may be assessed as an incident
18 thereof shall be collected and enforced by the State
19 Department of Revenue. The certificate of registration which
20 is issued by the Department to a retailer under the
21 Retailers' Occupation Tax Act or under the Service Occupation
22 Tax Act shall permit such registrant to engage in a business
23 which is taxable under any ordinance or resolution enacted
24 pursuant to this Section without registering separately with
25 the Department under such ordinance or resolution or under
26 this Section. The Department shall have full power to
27 administer and enforce this Section; to collect all taxes and
28 penalties due hereunder; to dispose of taxes and penalties so
29 collected in the manner hereinafter provided, and to
30 determine all rights to credit memoranda arising on account
31 of the erroneous payment of tax or penalty hereunder. In the
32 administration of, and compliance with, this Section the
33 Department and persons who are subject to this Section shall
34 have the same rights, remedies, privileges, immunities,
-106- LRB9110257SMdvam06
1 powers and duties, and be subject to the same conditions,
2 restrictions, limitations, penalties and definitions of
3 terms, and employ the same modes of procedure, as are
4 prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
5 respect to all provisions therein other than the State rate
6 of tax), 4 (except that the reference to the State shall be
7 to the taxing municipality), 5, 7, 8 (except that the
8 jurisdiction to which the tax shall be a debt to the extent
9 indicated in that Section 8 shall be the taxing
10 municipality), 9 (except as to the disposition of taxes and
11 penalties collected, and except that the returned merchandise
12 credit for this municipal tax may not be taken against any
13 State tax), 10, 11, 12 (except the reference therein to
14 Section 2b of the Retailers' Occupation Tax Act), 13 (except
15 that any reference to the State shall mean the taxing
16 municipality), the first paragraph of Section 15, 16, 17
17 (except that credit memoranda issued hereunder may not be
18 used to discharge any State tax liability), 18, 19 and 20 of
19 the Service Occupation Tax Act and Section 3-7 of the Uniform
20 Penalty and Interest Act, as fully as if those provisions
21 were set forth herein.
22 No tax may be imposed by a home rule municipality
23 pursuant to this Section unless such municipality also
24 imposes a tax at the same rate pursuant to Section 8-11-1 of
25 this Act.
26 A home rule municipality that has not imposed a tax under
27 this Section on the selling price of motor fuel or gasohol
28 before the effective date of this amendatory Act of the 91st
29 General Assembly shall not impose such a tax on or after that
30 date. A home rule municipality that has imposed a tax under
31 this Section on the selling price of motor fuel or gasohol
32 before the effective date of this amendatory Act of the 91st
33 General Assembly shall not increase the rate of the tax on or
34 after that date. If, as a result of the provisions of this
-107- LRB9110257SMdvam06
1 amendatory Act of the 91st General Assembly, the rate of tax
2 imposed on the sale of motor fuel and gasohol by the
3 Retailers' Occupation Tax Act returns to 6.25%, then the
4 prohibition against imposing a tax on the sale of motor fuel
5 and gasohol and the prohibition against an increase in the
6 rate of any tax already imposed on the sale of motor fuel and
7 gasohol are no longer in effect. This amendatory Act of the
8 91st General Assembly is a denial and limitation of home rule
9 powers to tax under subsection (g) of Section 6 of Article
10 VII of the Illinois Constitution.
11 Persons subject to any tax imposed pursuant to the
12 authority granted in this Section may reimburse themselves
13 for their serviceman's tax liability hereunder by separately
14 stating such tax as an additional charge, which charge may be
15 stated in combination, in a single amount, with State tax
16 which servicemen are authorized to collect under the Service
17 Use Tax Act, pursuant to such bracket schedules as the
18 Department may prescribe.
19 Whenever the Department determines that a refund should
20 be made under this Section to a claimant instead of issuing
21 credit memorandum, the Department shall notify the State
22 Comptroller, who shall cause the order to be drawn for the
23 amount specified, and to the person named, in such
24 notification from the Department. Such refund shall be paid
25 by the State Treasurer out of the home rule municipal
26 retailers' occupation tax fund.
27 The Department shall forthwith pay over to the State
28 Treasurer, ex-officio, as trustee, all taxes and penalties
29 collected hereunder. On or before the 25th day of each
30 calendar month, the Department shall prepare and certify to
31 the Comptroller the disbursement of stated sums of money to
32 named municipalities, the municipalities to be those from
33 which suppliers and servicemen have paid taxes or penalties
34 hereunder to the Department during the second preceding
-108- LRB9110257SMdvam06
1 calendar month. The amount to be paid to each municipality
2 shall be the amount (not including credit memoranda)
3 collected hereunder during the second preceding calendar
4 month by the Department, and not including an amount equal to
5 the amount of refunds made during the second preceding
6 calendar month by the Department on behalf of such
7 municipality. Within 10 days after receipt, by the
8 Comptroller, of the disbursement certification to the
9 municipalities, provided for in this Section to be given to
10 the Comptroller by the Department, the Comptroller shall
11 cause the orders to be drawn for the respective amounts in
12 accordance with the directions contained in such
13 certification.
14 In addition to the disbursement required by the preceding
15 paragraph and in order to mitigate delays caused by
16 distribution procedures, an allocation shall, if requested,
17 be made within 10 days after January 14, 1991, and in
18 November of 1991 and each year thereafter, to each
19 municipality that received more than $500,000 during the
20 preceding fiscal year, (July 1 through June 30) whether
21 collected by the municipality or disbursed by the Department
22 as required by this Section. Within 10 days after January 14,
23 1991, participating municipalities shall notify the
24 Department in writing of their intent to participate. In
25 addition, for the initial distribution, participating
26 municipalities shall certify to the Department the amounts
27 collected by the municipality for each month under its home
28 rule occupation and service occupation tax during the period
29 July 1, 1989 through June 30, 1990. The allocation within 10
30 days after January 14, 1991, shall be in an amount equal to
31 the monthly average of these amounts, excluding the 2 months
32 of highest receipts. Monthly average for the period of July
33 1, 1990 through June 30, 1991 will be determined as follows:
34 the amounts collected by the municipality under its home rule
-109- LRB9110257SMdvam06
1 occupation and service occupation tax during the period of
2 July 1, 1990 through September 30, 1990, plus amounts
3 collected by the Department and paid to such municipality
4 through June 30, 1991, excluding the 2 months of highest
5 receipts. The monthly average for each subsequent period of
6 July 1 through June 30 shall be an amount equal to the
7 monthly distribution made to each such municipality under the
8 preceding paragraph during this period, excluding the 2
9 months of highest receipts. The distribution made in
10 November 1991 and each year thereafter under this paragraph
11 and the preceding paragraph shall be reduced by the amount
12 allocated and disbursed under this paragraph in the preceding
13 period of July 1 through June 30. The Department shall
14 prepare and certify to the Comptroller for disbursement the
15 allocations made in accordance with this paragraph.
16 Nothing in this Section shall be construed to authorize a
17 municipality to impose a tax upon the privilege of engaging
18 in any business which under the constitution of the United
19 States may not be made the subject of taxation by this State.
20 An ordinance or resolution imposing or discontinuing a
21 tax hereunder or effecting a change in the rate thereof shall
22 be adopted and a certified copy thereof filed with the
23 Department on or before the first day of June, whereupon the
24 Department shall proceed to administer and enforce this
25 Section as of the first day of September next following such
26 adoption and filing. Beginning January 1, 1992, an ordinance
27 or resolution imposing or discontinuing the tax hereunder or
28 effecting a change in the rate thereof shall be adopted and a
29 certified copy thereof filed with the Department on or before
30 the first day of July, whereupon the Department shall proceed
31 to administer and enforce this Section as of the first day of
32 October next following such adoption and filing. Beginning
33 January 1, 1993, an ordinance or resolution imposing or
34 discontinuing the tax hereunder or effecting a change in the
-110- LRB9110257SMdvam06
1 rate thereof shall be adopted and a certified copy thereof
2 filed with the Department on or before the first day of
3 October, whereupon the Department shall proceed to administer
4 and enforce this Section as of the first day of January next
5 following such adoption and filing. However, a municipality
6 located in a county with a population in excess of 3,000,000
7 that elected to become a home rule unit at the general
8 primary election in 1994 may adopt an ordinance or resolution
9 imposing the tax under this Section and file a certified copy
10 of the ordinance or resolution with the Department on or
11 before July 1, 1994. The Department shall then proceed to
12 administer and enforce this Section as of October 1, 1994.
13 Beginning April 1, 1998, an ordinance or resolution imposing
14 or discontinuing the tax hereunder or effecting a change in
15 the rate thereof shall either (i) be adopted and a certified
16 copy thereof filed with the Department on or before the first
17 day of April, whereupon the Department shall proceed to
18 administer and enforce this Section as of the first day of
19 July next following the adoption and filing; or (ii) be
20 adopted and a certified copy thereof filed with the
21 Department on or before the first day of October, whereupon
22 the Department shall proceed to administer and enforce this
23 Section as of the first day of January next following the
24 adoption and filing.
25 Any unobligated balance remaining in the Municipal
26 Retailers' Occupation Tax Fund on December 31, 1989, which
27 fund was abolished by Public Act 85-1135, and all receipts of
28 municipal tax as a result of audits of liability periods
29 prior to January 1, 1990, shall be paid into the Local
30 Government Tax Fund, for distribution as provided by this
31 Section prior to the enactment of Public Act 85-1135. All
32 receipts of municipal tax as a result of an assessment not
33 arising from an audit, for liability periods prior to January
34 1, 1990, shall be paid into the Local Government Tax Fund for
-111- LRB9110257SMdvam06
1 distribution before July 1, 1990, as provided by this Section
2 prior to the enactment of Public Act 85-1135, and on and
3 after July 1, 1990, all such receipts shall be distributed as
4 provided in Section 6z-18 of the State Finance Act.
5 As used in this Section, "municipal" and "municipality"
6 means a city, village or incorporated town, including an
7 incorporated town which has superseded a civil township.
8 This Section shall be known and may be cited as the Home
9 Rule Municipal Service Occupation Tax Act.
10 (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
11 (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
12 Sec. 8-11-6. Home Rule Municipal Use Tax Act.
13 (a) The corporate authorities of a home rule
14 municipality may impose a tax upon the privilege of using, in
15 such municipality, any item of tangible personal property
16 which is purchased at retail from a retailer, and which is
17 titled or registered at a location within the corporate
18 limits of such home rule municipality with an agency of this
19 State's government, at a rate which is an increment of 1/4%
20 and based on the selling price of such tangible personal
21 property, as "selling price" is defined in the Use Tax Act.
22 In home rule municipalities with less than 2,000,000
23 inhabitants, the tax shall be collected by the municipality
24 imposing the tax from persons whose Illinois address for
25 titling or registration purposes is given as being in such
26 municipality.
27 (b) In home rule municipalities with 2,000,000 or more
28 inhabitants, the corporate authorities of the municipality
29 may additionally impose a tax beginning July 1, 1991 upon the
30 privilege of using in the municipality, any item of tangible
31 personal property, other than tangible personal property
32 titled or registered with an agency of the State's
33 government, that is purchased at retail from a retailer
-112- LRB9110257SMdvam06
1 located outside the corporate limits of the municipality, at
2 a rate that is an increment of 1/4% not to exceed 1% and
3 based on the selling price of the tangible personal property,
4 as "selling price" is defined in the Use Tax Act. Such tax
5 shall be collected from the purchaser by the municipality
6 imposing such tax.
7 To prevent multiple home rule taxation, the use in a home
8 rule municipality of tangible personal property that is
9 acquired outside the municipality and caused to be brought
10 into the municipality by a person who has already paid a home
11 rule municipal tax in another municipality in respect to the
12 sale, purchase, or use of that property, shall be exempt to
13 the extent of the amount of the tax properly due and paid in
14 the other home rule municipality.
15 (b-5) A home rule municipality that has not imposed a
16 tax under this Section on the use of motor fuel or gasohol
17 before the effective date of this amendatory Act of the 91st
18 General Assembly shall not impose such a tax on or after that
19 date. A home rule municipality that has imposed a tax under
20 this Section on the use of motor fuel or gasohol before the
21 effective date of this amendatory Act of the 91st General
22 Assembly shall not increase the rate of the tax on or after
23 that date. If, as a result of the provisions of this
24 amendatory Act of the 91st General Assembly, the rate of tax
25 imposed on the sale of motor fuel and gasohol by the
26 Retailers' Occupation Tax Act returns to 6.25%, then the
27 prohibition against imposing a tax on the sale of motor fuel
28 and gasohol and the prohibition against an increase in the
29 rate of any tax already imposed on the sale of motor fuel and
30 gasohol are no longer in effect. This amendatory Act of the
31 91st General Assembly is a denial and limitation of home rule
32 powers to tax under subsection (g) of Section 6 of Article
33 VII of the Illinois Constitution.
34 (c) If a municipality having 2,000,000 or more
-113- LRB9110257SMdvam06
1 inhabitants imposes the tax authorized by subsection (a),
2 then the tax shall be collected by the Illinois Department of
3 Revenue when the property is purchased at retail from a
4 retailer in the county in which the home rule municipality
5 imposing the tax is located, and in all contiguous counties.
6 The tax shall be remitted to the State, or an exemption
7 determination must be obtained from the Department before the
8 title or certificate of registration for the property may be
9 issued. The tax or proof of exemption may be transmitted to
10 the Department by way of the State agency with which, or
11 State officer with whom, the tangible personal property must
12 be titled or registered if the Department and that agency or
13 State officer determine that this procedure will expedite the
14 processing of applications for title or registration.
15 The Department shall have full power to administer and
16 enforce this Section to collect all taxes, penalties and
17 interest due hereunder, to dispose of taxes, penalties and
18 interest so collected in the manner hereinafter provided, and
19 determine all rights to credit memoranda or refunds arising
20 on account of the erroneous payment of tax, penalty or
21 interest hereunder. In the administration of and compliance
22 with this Section the Department and persons who are subject
23 to this Section shall have the same rights, remedies,
24 privileges, immunities, powers and duties, and be subject to
25 the same conditions, restrictions, limitations, penalties and
26 definitions of terms, and employ the same modes of procedure
27 as are prescribed in Sections 2 (except the definition of
28 "retailer maintaining a place of business in this State"), 3
29 (except provisions pertaining to the State rate of tax, and
30 except provisions concerning collection or refunding of the
31 tax by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22
32 of the Use Tax Act, which are not inconsistent with this
33 Section, as fully as if provisions contained in those
34 Sections of the Use Tax Act were set forth herein.
-114- LRB9110257SMdvam06
1 Whenever the Department determines that a refund shall be
2 made under this Section to a claimant instead of issuing a
3 credit memorandum, the Department shall notify the State
4 Comptroller, who shall cause the order to be drawn for the
5 amount specified, and to the person named, in such
6 notification from the Department. Such refund shall be paid
7 by the State Treasurer out of the home rule municipal
8 retailers' occupation tax fund.
9 The Department shall forthwith pay over to the State
10 Treasurer, ex officio, as trustee, all taxes, penalties and
11 interest collected hereunder. On or before the 25th day of
12 each calendar month, the Department shall prepare and certify
13 to the State Comptroller the disbursement of stated sums of
14 money to named municipalities, the municipality in each
15 instance to be that municipality from which the Department
16 during the second preceding calendar month, collected
17 municipal use tax from any person whose Illinois address for
18 titling or registration purposes is given as being in such
19 municipality. The amount to be paid to each municipality
20 shall be the amount (not including credit memoranda)
21 collected hereunder during the second preceding calendar
22 month by the Department, and not including an amount equal to
23 the amount of refunds made during the second preceding
24 calendar month by the Department on behalf of such
25 municipality, less the amount expended during the second
26 preceding month by the Department to be paid from the
27 appropriation to the Department from the Home Rule Municipal
28 Retailers' Occupation Tax Trust Fund. The appropriation to
29 cover the costs incurred by the Department in administering
30 and enforcing this Section shall not exceed 2% of the amount
31 estimated to be deposited into the Home Rule Municipal
32 Retailers' Occupation Tax Trust Fund during the fiscal year
33 for which the appropriation is made. Within 10 days after
34 receipt by the State Comptroller of the disbursement
-115- LRB9110257SMdvam06
1 certification to the municipalities provided for in this
2 Section to be given to the State Comptroller by the
3 Department, the State Comptroller shall cause the orders to
4 be drawn for the respective amounts in accordance with the
5 directions contained in that certification.
6 Any ordinance imposing or discontinuing any tax to be
7 collected and enforced by the Department under this Section
8 shall be adopted and a certified copy thereof filed with the
9 Department on or before October 1, whereupon the Department
10 of Revenue shall proceed to administer and enforce this
11 Section on behalf of the municipalities as of January 1 next
12 following such adoption and filing. Beginning April 1, 1998,
13 any ordinance imposing or discontinuing any tax to be
14 collected and enforced by the Department under this Section
15 shall either (i) be adopted and a certified copy thereof
16 filed with the Department on or before April 1, whereupon the
17 Department of Revenue shall proceed to administer and enforce
18 this Section on behalf of the municipalities as of July 1
19 next following the adoption and filing; or (ii) be adopted
20 and a certified copy thereof filed with the Department on or
21 before October 1, whereupon the Department of Revenue shall
22 proceed to administer and enforce this Section on behalf of
23 the municipalities as of January 1 next following the
24 adoption and filing.
25 Nothing in this subsection (c) shall prevent a home rule
26 municipality from collecting the tax pursuant to subsection
27 (a) in any situation where such tax is not collected by the
28 Department of Revenue under this subsection (c).
29 (d) Any unobligated balance remaining in the Municipal
30 Retailers' Occupation Tax Fund on December 31, 1989, which
31 fund was abolished by Public Act 85-1135, and all receipts of
32 municipal tax as a result of audits of liability periods
33 prior to January 1, 1990, shall be paid into the Local
34 Government Tax Fund, for distribution as provided by this
-116- LRB9110257SMdvam06
1 Section prior to the enactment of Public Act 85-1135. All
2 receipts of municipal tax as a result of an assessment not
3 arising from an audit, for liability periods prior to January
4 1, 1990, shall be paid into the Local Government Tax Fund for
5 distribution before July 1, 1990, as provided by this Section
6 prior to the enactment of Public Act 85-1135, and on and
7 after July 1, 1990, all such receipts shall be distributed as
8 provided in Section 6z-18 of the State Finance Act.
9 (e) As used in this Section, "Municipal" and
10 "Municipality" means a city, village or incorporated town,
11 including an incorporated town which has superseded a civil
12 township.
13 (f) This Section shall be known and may be cited as the
14 Home Rule Municipal Use Tax Act.
15 (Source: P.A. 90-562, eff. 12-16-97; 90-689, eff. 7-31-98;
16 91-51, eff. 6-30-99.)
17 (65 ILCS 5/8-11-15) (from Ch. 24, par. 8-11-15)
18 Sec. 8-11-15. Municipal motor fuel.
19 (a) The corporate authorities of a municipality of over
20 100,000 inhabitants may, upon approval of the electors of the
21 municipality pursuant to subsection (b), impose a tax of one
22 cent per gallon on motor fuel sold at retail within such
23 municipality. A tax imposed pursuant to this Section shall be
24 paid in addition to any other taxes on such motor fuel.
25 A municipality that has not imposed a tax under this
26 Section before the effective date of this amendatory Act of
27 the 91st General Assembly shall not impose such a tax on or
28 after that date. A municipality that has imposed a tax under
29 this Section before the effective date of this amendatory Act
30 of the 91st General Assembly shall not increase the rate of
31 the tax on or after that date. If, as a result of the
32 provisions of this amendatory Act of the 91st General
33 Assembly, the rate of tax imposed on the sale of motor fuel
-117- LRB9110257SMdvam06
1 and gasohol by the Retailers' Occupation Tax Act returns to
2 6.25%, then the prohibition against imposing a tax on the
3 sale of motor fuel and gasohol and the prohibition against an
4 increase in the rate of any tax already imposed on the sale
5 of motor fuel and gasohol are no longer in effect. This
6 amendatory Act of the 91st General Assembly is a denial and
7 limitation of home rule powers to tax under subsection (g) of
8 Section 6 of Article VII of the Illinois Constitution.
9 (b) The corporate authorities of the municipality may by
10 resolution call for the submission to the electors of the
11 municipality of the question of whether the municipality
12 shall impose such tax. Such question shall be certified by
13 the municipal clerk to the election authority in accordance
14 with Section 28-5 of The Election Code. The question shall be
15 in substantially the following form:
16 -------------------------------------------------------------
17 Shall the city (village or
18 incorporated town) of ....... YES
19 impose a tax of one cent per -----------------------------
20 gallon on motor fuel sold at NO
21 retail within its boundaries?
22 -------------------------------------------------------------
23 If a majority of the electors in the municipality voting
24 upon the question vote in the affirmative, such tax shall be
25 imposed.
26 (c) The purchaser of the motor fuel shall be liable for
27 payment of a tax imposed pursuant to this Section. This
28 Section shall not be construed to impose a tax on the
29 occupation of persons engaged in the sale of motor fuel.
30 If a municipality imposes a tax on motor fuel pursuant to
31 this Section, it shall be the duty of any person engaged in
32 the retail sale of motor fuel within such municipality to
33 collect such tax from the purchaser at the same time he
34 collects the purchase price of the motor fuel and to pay over
-118- LRB9110257SMdvam06
1 such tax to the municipality as prescribed by the ordinance
2 of the municipality imposing such tax.
3 (d) For purposes of this Section, "motor fuel" shall
4 have the same meaning as provided in the "Motor Fuel Tax
5 Law".
6 (Source: P.A. 84-1099.)
7 Section 35. The Civic Center Code is amended by changing
8 Section 245-12 as follows:
9 (70 ILCS 200/245-12)
10 Sec. 245-12. Use and occupation taxes.
11 (a) The Authority may adopt a resolution that authorizes
12 a referendum on the question of whether the Authority shall
13 be authorized to impose a retailers' occupation tax, a
14 service occupation tax, and a use tax in one-quarter percent
15 increments at a rate not to exceed 1%. The Authority shall
16 certify the question to the proper election authorities who
17 shall submit the question to the voters of the metropolitan
18 area at the next regularly scheduled election in accordance
19 with the general election law. The question shall be in
20 substantially the following form:
21 "Shall the Salem Civic Center Authority be authorized to
22 impose a retailers' occupation tax, a service occupation
23 tax, and a use tax at the rate of (rate) for the sole
24 purpose of obtaining funds for the support, construction,
25 maintenance, or financing of a facility of the
26 Authority?"
27 Votes shall be recorded as "yes" or "no". If a majority
28 of all votes cast on the proposition are in favor of the
29 proposition, the Authority is authorized to impose the tax.
30 (b) The Authority shall impose the retailers' occupation
31 tax upon all persons engaged in the business of selling
32 tangible personal property at retail in the metropolitan
-119- LRB9110257SMdvam06
1 area, at the rate approved by referendum, on the gross
2 receipts from the sales made in the course of such business
3 within the metropolitan area. The tax imposed under this
4 Section and all civil penalties that may be assessed as an
5 incident thereof shall be collected and enforced by the
6 Department of Revenue. The Department has full power to
7 administer and enforce this Section; to collect all taxes and
8 penalties so collected in the manner provided in this
9 Section; and to determine all rights to credit memoranda
10 arising on account of the erroneous payment of tax or penalty
11 hereunder. In the administration of, and compliance with,
12 this Section, the Department and persons who are subject to
13 this Section shall (i) have the same rights, remedies,
14 privileges, immunities, powers and duties, (ii) be subject to
15 the same conditions, restrictions, limitations, penalties,
16 exclusions, exemptions, and definitions of terms, and (iii)
17 employ the same modes of procedure as are prescribed in
18 Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2,
19 2-5, 2-5.5, 2-10 (in respect to all provisions therein other
20 than the State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3
21 (except as to the disposition of taxes and penalties
22 collected and provisions related to quarter monthly
23 payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l,
24 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
25 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
26 Penalty and Interest Act, as fully as if those provisions
27 were set forth in this subsection.
28 If the Authority has not imposed a tax under this
29 subsection on the sale of motor fuel or gasohol before the
30 effective date of this amendatory Act of the 91st General
31 Assembly, then the Authority shall not impose such a tax on
32 or after that date. If the Authority has imposed a tax under
33 this subsection on the sale of motor fuel or gasohol before
34 the effective date of this amendatory Act of the 91st General
-120- LRB9110257SMdvam06
1 Assembly, then the Authority shall not increase the rate of
2 the tax on or after that date. If, as a result of the
3 provisions of this amendatory Act of the 91st General
4 Assembly, the rate of tax imposed on the sale of motor fuel
5 and gasohol by the Retailers' Occupation Tax Act returns to
6 6.25%, then the prohibition against imposing a tax on the
7 sale of motor fuel and gasohol and the prohibition against an
8 increase in the rate of any tax already imposed on the sale
9 of motor fuel and gasohol are no longer in effect.
10 Persons subject to any tax imposed under this subsection
11 may reimburse themselves for their seller's tax liability by
12 separately stating the tax as an additional charge, which
13 charge may be stated in combination, in a single amount, with
14 State taxes that sellers are required to collect, in
15 accordance with such bracket schedules as the Department may
16 prescribe.
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 If a tax is imposed under this subsection (b), a tax
26 shall also be imposed at the same rate under subsections (c)
27 and (d) of this Section.
28 For the purpose of determining whether a tax authorized
29 under this Section is applicable, a retail sale, by a
30 producer of coal or other mineral mined in Illinois, is a
31 sale at retail at the place where the coal or other mineral
32 mined in Illinois is extracted from the earth. This
33 paragraph does not apply to coal or other mineral when it is
34 delivered or shipped by the seller to the purchaser at a
-121- LRB9110257SMdvam06
1 point outside Illinois so that the sale is exempt under the
2 Federal Constitution as a sale in interstate or foreign
3 commerce.
4 Nothing in this Section shall be construed to authorize
5 the Authority to impose a tax upon the privilege of engaging
6 in any business which under the Constitution of the United
7 States may not be made the subject of taxation by this State.
8 (c) If a tax has been imposed under subsection (b), a
9 service occupation tax shall also be imposed at the same rate
10 upon all persons engaged, in the metropolitan area, in the
11 business of making sales of service, who, as an incident to
12 making those sales of service, transfer tangible personal
13 property within the metropolitan area as an incident to a
14 sale of service. The tax imposed under this subsection and
15 all civil penalties that may be assessed as an incident
16 thereof shall be collected and enforced by the Department of
17 Revenue. The Department has full power to administer and
18 enforce this paragraph; to collect all taxes and penalties
19 due hereunder; to dispose of taxes and penalties so collected
20 in the manner hereinafter provided; and to determine all
21 rights to credit memoranda arising on account of the
22 erroneous payment of tax or penalty hereunder. In the
23 administration of, and compliance with this paragraph, the
24 Department and persons who are subject to this paragraph
25 shall (i) have the same rights, remedies, privileges,
26 immunities, powers, and duties, (ii) be subject to the same
27 conditions, restrictions, limitations, penalties, exclusions,
28 exemptions, and definitions of terms, and (iii) employ the
29 same modes of procedure as are prescribed in Sections 2
30 (except that the reference to State in the definition of
31 supplier maintaining a place of business in this State shall
32 mean the metropolitan area), 2a, 2b, 3 through 3-55 (in
33 respect to all provisions therein other than the State rate
34 of tax), 4 (except that the reference to the State shall be
-122- LRB9110257SMdvam06
1 to the Authority), 5, 7, 8 (except that the jurisdiction to
2 which the tax shall be a debt to the extent indicated in that
3 Section 8 shall be the Authority), 9 (except as to the
4 disposition of taxes and penalties collected, and except that
5 the returned merchandise credit for this tax may not be taken
6 against any State tax), 11, 12 (except the reference therein
7 to Section 2b of the Retailers' Occupation Tax Act), 13
8 (except that any reference to the State shall mean the
9 Authority), 15, 16, 17, 18, 19 and 20 of the Service
10 Occupation Tax Act and Section 3-7 of the Uniform Penalty and
11 Interest Act, as fully as if those provisions were set forth
12 herein.
13 If the Authority has not imposed a tax under this
14 subsection on the selling price of motor fuel or gasohol
15 before the effective date of this amendatory Act of the 91st
16 General Assembly, then the Authority shall not impose such a
17 tax on or after that date. If the Authority has imposed a
18 tax under this subsection on the selling price of motor fuel
19 or gasohol before the effective date of this amendatory Act
20 of the 91st General Assembly, then the Authority shall not
21 increase the rate of the tax on or after that date. If, as a
22 result of the provisions of this amendatory Act of the 91st
23 General Assembly, the rate of tax imposed on the sale of
24 motor fuel and gasohol by the Retailers' Occupation Tax Act
25 returns to 6.25%, then the prohibition against imposing a tax
26 on the sale of motor fuel and gasohol and the prohibition
27 against an increase in the rate of any tax already imposed on
28 the sale of motor fuel and gasohol are no longer in effect.
29 Persons subject to any tax imposed under the authority
30 granted in this subsection may reimburse themselves for their
31 serviceman's tax liability by separately stating the tax as
32 an additional charge, which charge may be stated in
33 combination, in a single amount, with State tax that
34 servicemen are authorized to collect under the Service Use
-123- LRB9110257SMdvam06
1 Tax Act, in accordance with such bracket schedules as the
2 Department may prescribe.
3 Whenever the Department determines that a refund should
4 be made under this subsection to a claimant instead of
5 issuing a credit memorandum, the Department shall notify the
6 State Comptroller, who shall cause the warrant to be drawn
7 for the amount specified, and to the person named, in the
8 notification from the Department. The refund shall be paid
9 by the State Treasurer out of the tax fund referenced under
10 paragraph (g) of this Section.
11 Nothing in this paragraph shall be construed to authorize
12 the Authority to impose a tax upon the privilege of engaging
13 in any business which under the Constitution of the United
14 States may not be made the subject of taxation by the State.
15 (d) If a tax has been imposed under subsection (b), a
16 use tax shall also be imposed at the same rate upon the
17 privilege of using, in the metropolitan area, any item of
18 tangible personal property that is purchased outside the
19 metropolitan area at retail from a retailer, and that is
20 titled or registered at a location within the metropolitan
21 area with an agency of this State's government. "Selling
22 price" is defined as in the Use Tax Act. The tax shall be
23 collected from persons whose Illinois address for titling or
24 registration purposes is given as being in the metropolitan
25 area. The tax shall be collected by the Department of
26 Revenue for the Authority. The tax must be paid to the State,
27 or an exemption determination must be obtained from the
28 Department of Revenue, before the title or certificate of
29 registration for the property may be issued. The tax or
30 proof of exemption may be transmitted to the Department by
31 way of the State agency with which, or the State officer with
32 whom, the tangible personal property must be titled or
33 registered if the Department and the State agency or State
34 officer determine that this procedure will expedite the
-124- LRB9110257SMdvam06
1 processing of applications for title or registration.
2 The Department has full power to administer and enforce
3 this paragraph; to collect all taxes, penalties and interest
4 due hereunder; to dispose of taxes, penalties and interest so
5 collected in the manner hereinafter provided; and to
6 determine all rights to credit memoranda or refunds arising
7 on account of the erroneous payment of tax, penalty or
8 interest hereunder. In the administration of, and compliance
9 with, this subsection, the Department and persons who are
10 subject to this paragraph shall (i) have the same rights,
11 remedies, privileges, immunities, powers, and duties, (ii) be
12 subject to the same conditions, restrictions, limitations,
13 penalties, exclusions, exemptions, and definitions of terms,
14 and (iii) employ the same modes of procedure as are
15 prescribed in Sections 2 (except the definition of "retailer
16 maintaining a place of business in this State"), 3, 3-5,
17 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, 4, 6, 7, 8 (except
18 that the jurisdiction to which the tax shall be a debt to the
19 extent indicated in that Section 8 shall be the Authority), 9
20 (except provisions relating to quarter monthly payments), 10,
21 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22 of the Use
22 Tax Act and Section 3-7 of the Uniform Penalty and Interest
23 Act, that are not inconsistent with this paragraph, as fully
24 as if those provisions were set forth herein.
25 If the Authority has not imposed a tax under this
26 subsection on the use of motor fuel or gasohol before the
27 effective date of this amendatory Act of the 91st General
28 Assembly, then the Authority shall not impose such a tax on
29 or after that date. If the Authority has imposed a tax under
30 this subsection on the use of motor fuel or gasohol before
31 the effective date of this amendatory Act of the 91st General
32 Assembly, then the Authority shall not increase the rate of
33 the tax on or after that date. If, as a result of the
34 provisions of this amendatory Act of the 91st General
-125- LRB9110257SMdvam06
1 Assembly, the rate of tax imposed on the sale of motor fuel
2 and gasohol by the Retailers' Occupation Tax Act returns to
3 6.25%, then the prohibition against imposing a tax on the
4 sale of motor fuel and gasohol and the prohibition against an
5 increase in the rate of any tax already imposed on the sale
6 of motor fuel and gasohol are no longer in effect.
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 order to be drawn for
11 the amount specified, and to the person named, in the
12 notification from the Department. The refund shall be paid by
13 the State Treasurer out of the tax fund referenced under
14 paragraph (g) of this Section.
15 (e) A certificate of registration issued by the State
16 Department of Revenue to a retailer under the Retailers'
17 Occupation Tax Act or under the Service Occupation Tax Act
18 shall permit the registrant to engage in a business that is
19 taxed under the tax imposed under paragraphs (b), (c), or (d)
20 of this Section and no additional registration shall be
21 required. A certificate issued under the Use Tax Act or the
22 Service Use Tax Act shall be applicable with regard to any
23 tax imposed under paragraph (c) of this Section.
24 (f) The results of any election authorizing a
25 proposition to impose a tax under this Section or effecting a
26 change in the rate of tax shall be certified by the proper
27 election authorities and filed with the Illinois Department
28 on or before the first day of April. In addition, an
29 ordinance imposing, discontinuing, or effecting a change in
30 the rate of tax under this Section shall be adopted and a
31 certified copy thereof filed with the Department on or before
32 the first day of April. After proper receipt of such
33 certifications, the Department shall proceed to administer
34 and enforce this Section as of the first day of July next
-126- LRB9110257SMdvam06
1 following such adoption and filing.
2 (g) The Department of Revenue shall, upon collecting any
3 taxes and penalties as provided in this Section, pay the
4 taxes and penalties over to the State Treasurer as trustee
5 for the Authority. The taxes and penalties shall be held in a
6 trust fund outside the State Treasury. On or before the 25th
7 day of each calendar month, the Department of Revenue shall
8 prepare and certify to the Comptroller of the State of
9 Illinois the amount to be paid to the Authority, which shall
10 be the balance in the fund, less any amount determined by the
11 Department to be necessary for the payment of refunds. Within
12 10 days after receipt by the Comptroller of the certification
13 of the amount to be paid to the Authority, the Comptroller
14 shall cause an order to be drawn for payment for the amount
15 in accordance with the directions contained in the
16 certification. Amounts received from the tax imposed under
17 this Section shall be used only for the support,
18 construction, maintenance, or financing of a facility of the
19 Authority.
20 (h) When certifying the amount of a monthly disbursement
21 to the Authority under this Section, the Department shall
22 increase or decrease the amounts by an amount necessary to
23 offset any miscalculation of previous disbursements. The
24 offset amount shall be the amount erroneously disbursed
25 within the previous 6 months from the time a miscalculation
26 is discovered.
27 (i) This Section may be cited as the Salem Civic Center
28 Use and Occupation Tax Law.
29 (Source: P.A. 90-328, eff. 1-1-98.)
30 Section 40. The Local Mass Transit District Act is
31 amended by changing Section 5.01 as follows:
32 (70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
-127- LRB9110257SMdvam06
1 Sec. 5.01. Metro East Mass Transit District; use and
2 occupation taxes.
3 (a) The Board of Trustees of any Metro East Mass Transit
4 District may, by ordinance adopted with the concurrence of
5 two-thirds of the then trustees, impose throughout the
6 District any or all of the taxes and fees provided in this
7 Section. All taxes and fees imposed under this Section shall
8 be used only for public mass transportation systems, and the
9 amount used to provide mass transit service to unserved areas
10 of the District shall be in the same proportion to the total
11 proceeds as the number of persons residing in the unserved
12 areas is to the total population of the District. Except as
13 otherwise provided in this Act, taxes imposed under this
14 Section and civil penalties imposed incident thereto shall be
15 collected and enforced by the State Department of Revenue.
16 The Department shall have the power to administer and enforce
17 the taxes and to determine all rights for refunds for
18 erroneous payments of the taxes.
19 (b) The Board may impose a Metro East Mass Transit
20 District Retailers' Occupation Tax upon all persons engaged
21 in the business of selling tangible personal property at
22 retail in the district at a rate of 1/4 of 1%, or as
23 authorized under subsection (d-5) of this Section, of the
24 gross receipts from the sales made in the course of such
25 business within the district. The tax imposed under this
26 Section and all civil penalties that may be assessed as an
27 incident thereof shall be collected and enforced by the State
28 Department of Revenue. The Department shall have full power
29 to administer and enforce this Section; to collect all taxes
30 and penalties so collected in the manner hereinafter
31 provided; and to determine all rights to credit memoranda
32 arising on account of the erroneous payment of tax or penalty
33 hereunder. In the administration of, and compliance with,
34 this Section, the Department and persons who are subject to
-128- LRB9110257SMdvam06
1 this Section shall have the same rights, remedies,
2 privileges, immunities, powers and duties, and be subject to
3 the same conditions, restrictions, limitations, penalties,
4 exclusions, exemptions and definitions of terms and employ
5 the same modes of procedure, as are prescribed in Sections 1,
6 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect
7 to all provisions therein other than the State rate of tax),
8 2c, 3 (except as to the disposition of taxes and penalties
9 collected), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
10 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the
11 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
12 Penalty and Interest Act, as fully as if those provisions
13 were set forth herein.
14 If the Board has not imposed a tax under this subsection
15 on the sale of motor fuel or gasohol before the effective
16 date of this amendatory Act of the 91st General Assembly,
17 then the Board shall not impose such a tax on or after that
18 date. If the Board has imposed a tax under this subsection
19 on the sale of motor fuel or gasohol before the effective
20 date of this amendatory Act of the 91st General Assembly,
21 then the Board shall not increase the rate of the tax on or
22 after that date. If, as a result of the provisions of this
23 amendatory Act of the 91st General Assembly, the rate of tax
24 imposed on the sale of motor fuel and gasohol by the
25 Retailers' Occupation Tax Act returns to 6.25%, then the
26 prohibition against imposing a tax on the sale of motor fuel
27 and gasohol and the prohibition against an increase in the
28 rate of any tax already imposed on the sale of motor fuel and
29 gasohol are no longer in effect.
30 Persons subject to any tax imposed under the Section may
31 reimburse themselves for their seller's tax liability
32 hereunder by separately stating the tax as an additional
33 charge, which charge may be stated in combination, in a
34 single amount, with State taxes that sellers are required to
-129- LRB9110257SMdvam06
1 collect under the Use Tax Act, in accordance with such
2 bracket schedules as the Department may prescribe.
3 Whenever the Department determines that a refund should
4 be made under this Section to a claimant instead of issuing a
5 credit memorandum, the Department shall notify the State
6 Comptroller, who shall cause the warrant to be drawn for the
7 amount specified, and to the person named, in the
8 notification from the Department. The refund shall be paid
9 by the State Treasurer out of the Metro East Mass Transit
10 District tax fund established under paragraph (g) of this
11 Section.
12 If a tax is imposed under this subsection (b), a tax
13 shall also be imposed under subsections (c) and (d) of this
14 Section.
15 For the purpose of determining whether a tax authorized
16 under this Section is applicable, a retail sale, by a
17 producer of coal or other mineral mined in Illinois, is a
18 sale at retail at the place where the coal or other mineral
19 mined in Illinois is extracted from the earth. This
20 paragraph does not apply to coal or other mineral when it is
21 delivered or shipped by the seller to the purchaser at a
22 point outside Illinois so that the sale is exempt under the
23 Federal Constitution as a sale in interstate or foreign
24 commerce.
25 Nothing in this Section shall be construed to authorize
26 the Metro East Mass Transit District to impose a tax upon the
27 privilege of engaging in any business which under the
28 Constitution of the United States may not be made the subject
29 of taxation by this State.
30 (c) If a tax has been imposed under subsection (b), a
31 Metro East Mass Transit District Service Occupation Tax shall
32 also be imposed upon all persons engaged, in the district, in
33 the business of making sales of service, who, as an incident
34 to making those sales of service, transfer tangible personal
-130- LRB9110257SMdvam06
1 property within the District, either in the form of tangible
2 personal property or in the form of real estate as an
3 incident to a sale of service. The tax rate shall be 1/4%, or
4 as authorized under subsection (d-5) of this Section, of the
5 selling price of tangible personal property so transferred
6 within the district. The tax imposed under this paragraph
7 and all civil penalties that may be assessed as an incident
8 thereof shall be collected and enforced by the State
9 Department of Revenue. The Department shall have full power
10 to administer and enforce this paragraph; to collect all
11 taxes and penalties due hereunder; to dispose of taxes and
12 penalties so collected in the manner hereinafter provided;
13 and to determine all rights to credit memoranda arising on
14 account of the erroneous payment of tax or penalty hereunder.
15 In the administration of, and compliance with this paragraph,
16 the Department and persons who are subject to this paragraph
17 shall have the same rights, remedies, privileges, immunities,
18 powers and duties, and be subject to the same conditions,
19 restrictions, limitations, penalties, exclusions, exemptions
20 and definitions of terms and employ the same modes of
21 procedure as are prescribed in Sections 1a-1, 2 (except that
22 the reference to State in the definition of supplier
23 maintaining a place of business in this State shall mean the
24 Authority), 2a, 3 through 3-50 (in respect to all provisions
25 therein other than the State rate of tax), 4 (except that the
26 reference to the State shall be to the Authority), 5, 7, 8
27 (except that the jurisdiction to which the tax shall be a
28 debt to the extent indicated in that Section 8 shall be the
29 District), 9 (except as to the disposition of taxes and
30 penalties collected, and except that the returned merchandise
31 credit for this tax may not be taken against any State tax),
32 10, 11, 12 (except the reference therein to Section 2b of the
33 Retailers' Occupation Tax Act), 13 (except that any reference
34 to the State shall mean the District), the first paragraph of
-131- LRB9110257SMdvam06
1 Section 15, 16, 17, 18, 19 and 20 of the Service Occupation
2 Tax Act and Section 3-7 of the Uniform Penalty and Interest
3 Act, as fully as if those provisions were set forth herein.
4 If the Board has not imposed a tax under this subsection
5 on the selling price of motor fuel or gasohol before the
6 effective date of this amendatory Act of the 91st General
7 Assembly, then the Board shall not impose such a tax on or
8 after that date. If the Board has imposed a tax under this
9 subsection on the selling price of motor fuel or gasohol
10 before the effective date of this amendatory Act of the
11 General Assembly, then the Board shall not increase the rate
12 of the tax on or after that date. If, as a result of the
13 provisions of this amendatory Act of the 91st General
14 Assembly, the rate of tax imposed on the sale of motor fuel
15 and gasohol by the Retailers' Occupation Tax Act returns to
16 6.25%, then the prohibition against imposing a tax on the
17 sale of motor fuel and gasohol and the prohibition against an
18 increase in the rate of any tax already imposed on the sale
19 of motor fuel and gasohol are no longer in effect.
20 Persons subject to any tax imposed under the authority
21 granted in this paragraph may reimburse themselves for their
22 serviceman's tax liability hereunder by separately stating
23 the tax as an additional charge, which charge may be stated
24 in combination, in a single amount, with State tax that
25 servicemen are authorized to collect under the Service Use
26 Tax Act, in accordance with such bracket schedules as the
27 Department may prescribe.
28 Whenever the Department determines that a refund should
29 be made under this paragraph to a claimant instead of issuing
30 a credit memorandum, the Department shall notify the State
31 Comptroller, who shall cause the warrant to be drawn for the
32 amount specified, and to the person named, in the
33 notification from the Department. The refund shall be paid
34 by the State Treasurer out of the Metro East Mass Transit
-132- LRB9110257SMdvam06
1 District tax fund established under paragraph (g) of this
2 Section.
3 Nothing in this paragraph shall be construed to authorize
4 the District to impose a tax upon the privilege of engaging
5 in any business which under the Constitution of the United
6 States may not be made the subject of taxation by the State.
7 (d) If a tax has been imposed under subsection (b), a
8 Metro East Mass Transit District Use Tax shall also be
9 imposed upon the privilege of using, in the district, any
10 item of tangible personal property that is purchased outside
11 the district at retail from a retailer, and that is titled or
12 registered with an agency of this State's government, at a
13 rate of 1/4%, or as authorized under subsection (d-5) of this
14 Section, of the selling price of the tangible personal
15 property within the District, as "selling price" is defined
16 in the Use Tax Act. The tax shall be collected from persons
17 whose Illinois address for titling or registration purposes
18 is given as being in the District. The tax shall be
19 collected by the Department of Revenue for the Metro East
20 Mass Transit District. The tax must be paid to the State, or
21 an exemption determination must be obtained from the
22 Department of Revenue, before the title or certificate of
23 registration for the property may be issued. The tax or
24 proof of exemption may be transmitted to the Department by
25 way of the State agency with which, or the State officer with
26 whom, the tangible personal property must be titled or
27 registered if the Department and the State agency or State
28 officer determine that this procedure will expedite the
29 processing of applications for title or registration.
30 The Department shall have full power to administer and
31 enforce this paragraph; to collect all taxes, penalties and
32 interest due hereunder; to dispose of taxes, penalties and
33 interest so collected in the manner hereinafter provided; and
34 to determine all rights to credit memoranda or refunds
-133- LRB9110257SMdvam06
1 arising on account of the erroneous payment of tax, penalty
2 or interest hereunder. In the administration of, and
3 compliance with, this paragraph, the Department and persons
4 who are subject to this paragraph shall have the same rights,
5 remedies, privileges, immunities, powers and duties, and be
6 subject to the same conditions, restrictions, limitations,
7 penalties, exclusions, exemptions and definitions of terms
8 and employ the same modes of procedure, as are prescribed in
9 Sections 2 (except the definition of "retailer maintaining a
10 place of business in this State"), 3 through 3-80 (except
11 provisions pertaining to the State rate of tax, and except
12 provisions concerning collection or refunding of the tax by
13 retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
14 pertaining to claims by retailers and except the last
15 paragraph concerning refunds), 20, 21 and 22 of the Use Tax
16 Act and Section 3-7 of the Uniform Penalty and Interest Act,
17 that are not inconsistent with this paragraph, as fully as if
18 those provisions were set forth herein.
19 If the Board has not imposed a tax under this subsection
20 on the use of motor fuel or gasohol before the effective date
21 of this amendatory Act of the 91st General Assembly, then the
22 Board shall not impose such a tax on or after that date. If
23 the Board has imposed a tax under this subsection on the use
24 of motor fuel or gasohol before the effective date of this
25 amendatory Act of the 91st General Assembly, then the Board
26 shall not increase the rate of the tax on or after that date.
27 If, as a result of the provisions of this amendatory Act of
28 the 91st General Assembly, the rate of tax imposed on the
29 sale of motor fuel and gasohol by the Retailers' Occupation
30 Tax Act returns to 6.25%, then the prohibition against
31 imposing a tax on the sale of motor fuel and gasohol and the
32 prohibition against an increase in the rate of any tax
33 already imposed on the sale of motor fuel and gasohol are no
34 longer in effect.
-134- LRB9110257SMdvam06
1 Whenever the Department determines that a refund should
2 be made under this paragraph to a claimant instead of issuing
3 a credit memorandum, the Department shall notify the State
4 Comptroller, who shall cause the order to be drawn for the
5 amount specified, and to the person named, in the
6 notification from the Department. The refund shall be paid by
7 the State Treasurer out of the Metro East Mass Transit
8 District tax fund established under paragraph (g) of this
9 Section.
10 (d-5) The county board of any county participating in
11 the Metro East Mass Transit District may authorize, by
12 ordinance, a referendum on the question of whether the tax
13 rates for the Metro East Mass Transit District Retailers'
14 Occupation Tax, the Metro East Mass Transit District Service
15 Occupation Tax, and the Metro East Mass Transit District Use
16 Tax for the District should be increased from 0.25% to 0.75%.
17 Upon adopting the ordinance, the county board shall certify
18 the proposition to the proper election officials who shall
19 submit the proposition to the voters of the District at the
20 next election, in accordance with the general election law.
21 The proposition shall be in substantially the following
22 form:
23 Shall the tax rates for the Metro East Mass Transit
24 District Retailers' Occupation Tax, the Metro East Mass
25 Transit District Service Occupation Tax, and the Metro
26 East Mass Transit District Use Tax be increased from
27 0.25% to 0.75%?
28 The votes shall be recorded as "YES" or "NO". If a
29 majority of all votes cast on the proposition are for the
30 increase in the tax rates, the Metro East Mass Transit
31 District shall begin imposing the increased rates in the
32 District, and the Department of Revenue shall begin
33 collecting the increased amounts, as provided under this
34 Section. An ordinance imposing or discontinuing a tax
-135- LRB9110257SMdvam06
1 hereunder or effecting a change in the rate thereof shall be
2 adopted and a certified copy thereof filed with the
3 Department on or before the first day of October, whereupon
4 the Department shall proceed to administer and enforce this
5 Section as of the first day of January next following the
6 adoption and filing.
7 If the voters have approved a referendum under this
8 subsection, before November 1, 1994, to increase the tax rate
9 under this subsection, the Metro East Mass Transit District
10 Board of Trustees may adopt by a majority vote an ordinance
11 at any time before January 1, 1995 that excludes from the
12 rate increase tangible personal property that is titled or
13 registered with an agency of this State's government. The
14 ordinance excluding titled or registered tangible personal
15 property from the rate increase must be filed with the
16 Department at least 15 days before its effective date. At any
17 time after adopting an ordinance excluding from the rate
18 increase tangible personal property that is titled or
19 registered with an agency of this State's government, the
20 Metro East Mass Transit District Board of Trustees may adopt
21 an ordinance applying the rate increase to that tangible
22 personal property. The ordinance shall be adopted, and a
23 certified copy of that ordinance shall be filed with the
24 Department, on or before October 1, whereupon the Department
25 shall proceed to administer and enforce the rate increase
26 against tangible personal property titled or registered with
27 an agency of this State's government as of the following
28 January 1. After December 31, 1995, any reimposed rate
29 increase in effect under this subsection shall no longer
30 apply to tangible personal property titled or registered with
31 an agency of this State's government. Beginning January 1,
32 1996, the Board of Trustees of any Metro East Mass Transit
33 District may never reimpose a previously excluded tax rate
34 increase on tangible personal property titled or registered
-136- LRB9110257SMdvam06
1 with an agency of this State's government.
2 (d-6) If the Board of Trustees of any Metro East Mass
3 Transit District has imposed a rate increase under subsection
4 (d-5) and filed an ordinance with the Department of Revenue
5 excluding titled property from the higher rate, then that
6 Board may, by ordinance adopted with the concurrence of
7 two-thirds of the then trustees, impose throughout the
8 District a fee. The fee on the excluded property shall not
9 exceed $20 per retail transaction or an amount equal to the
10 amount of tax excluded, whichever is less, on tangible
11 personal property that is titled or registered with an agency
12 of this State's government. The Board of Trustees of any
13 Metro East Mass Transit District shall have full power to
14 administer and enforce this subsection and to determine all
15 rights to credit memoranda or refunds arising on account of
16 the erroneous payment of the fee hereunder. The Board shall
17 proceed to administer and enforce this subsection as of the
18 first day of the second month following the adoption of the
19 ordinance.
20 (d-7) If a fee has been imposed under subsection (d-6),
21 a fee shall also be imposed upon the privilege of using, in
22 the district, any item of tangible personal property that is
23 titled or registered with any agency of this State's
24 government, in an amount equal to the amount of the fee
25 imposed under subsection (d-6). The Board of Trustees of any
26 Metro East Mass Transit District shall have full power to
27 administer and enforce this subsection and to determine all
28 rights to credit memoranda or refunds arising on account of
29 the erroneous payment of the fee hereunder. The Board shall
30 proceed to administer and enforce this subsection
31 concurrently with the administration of the fee imposed under
32 subsection (d-6).
33 (d-8) No item of titled property shall be subject to
34 both the higher rate approved by referendum, as authorized
-137- LRB9110257SMdvam06
1 under subsection (d-5), and any fee imposed under subsection
2 (d-6) or (d-7).
3 (d-9) If fees have been imposed under subsections (d-6)
4 and (d-7), the Board shall forward a copy of the ordinance
5 adopting such fees, which shall include all zip codes in
6 whole or in part within the boundaries of the district, to
7 the Secretary of State within thirty days. By the 25th of
8 each month, the Secretary of State shall subsequently provide
9 the Board with a list of identifiable retail transactions
10 subject to the .25% rate occurring within the zip codes which
11 are in whole or in part within the boundaries of the district
12 and a list of title applications for addresses within the
13 boundaries of the district for the previous month.
14 (d-10) In the event that a retailer fails to pay
15 applicable fees within 30 days of the date of the
16 transaction, a penalty shall be assessed at the rate of 25%
17 of the amount of fees. Interest on both late fees and
18 penalties shall be assessed at the rate of 1% per month. All
19 fees, penalties, and attorney fees shall constitute a lien on
20 the personal and real property of the retailer. The Board of
21 Trustees of any Metro East Transit District shall have full
22 power to administer and enforce this subsection.
23 (e) A certificate of registration issued by the State
24 Department of Revenue to a retailer under the Retailers'
25 Occupation Tax Act or under the Service Occupation Tax Act
26 shall permit the registrant to engage in a business that is
27 taxed under the tax imposed under paragraphs (b), (c) or (d)
28 of this Section and no additional registration shall be
29 required under the tax. A certificate issued under the Use
30 Tax Act or the Service Use Tax Act shall be applicable with
31 regard to any tax imposed under paragraph (c) of this
32 Section.
33 (f) The Board may impose a replacement vehicle tax of
34 $50 on any passenger car, as defined in Section 1-157 of the
-138- LRB9110257SMdvam06
1 Illinois Vehicle Code, purchased within the district area by
2 or on behalf of an insurance company to replace a passenger
3 car of an insured person in settlement of a total loss claim.
4 The tax imposed may not become effective before the first day
5 of the month following the passage of the ordinance imposing
6 the tax and receipt of a certified copy of the ordinance by
7 the Department of Revenue. The Department of Revenue shall
8 collect the tax for the district in accordance with Sections
9 3-2002 and 3-2003 of the Illinois Vehicle Code.
10 The Department shall immediately pay over to the State
11 Treasurer, ex officio, as trustee, all taxes collected
12 hereunder. On or before the 25th day of each calendar month,
13 the Department shall prepare and certify to the Comptroller
14 the disbursement of stated sums of money to named districts,
15 the districts to be those from which retailers have paid
16 taxes or penalties hereunder to the Department during the
17 second preceding calendar month. The amount to be paid to
18 each district shall be the amount collected hereunder during
19 the second preceding calendar month by the Department, less
20 any amount determined by the Department to be necessary for
21 the payment of refunds. Within 10 days after receipt by the
22 Comptroller of the disbursement certification to the
23 districts, provided for in this Section to be given to the
24 Comptroller by the Department, the Comptroller shall cause
25 the orders to be drawn for the respective amounts in
26 accordance with the directions contained in the
27 certification.
28 (g) Any ordinance imposing or discontinuing any tax
29 under this Section shall be adopted and a certified copy
30 thereof filed with the Department on or before June 1,
31 whereupon the Department of Revenue shall proceed to
32 administer and enforce this Section on behalf of the Metro
33 East Mass Transit District as of September 1 next following
34 such adoption and filing. Beginning January 1, 1992, an
-139- LRB9110257SMdvam06
1 ordinance or resolution imposing or discontinuing the tax
2 hereunder shall be adopted and a certified copy thereof filed
3 with the Department on or before the first day of July,
4 whereupon the Department shall proceed to administer and
5 enforce this Section as of the first day of October next
6 following such adoption and filing. Beginning January 1,
7 1993, except as provided in subsection (d-5) of this Section,
8 an ordinance or resolution imposing or discontinuing the tax
9 hereunder shall be adopted and a certified copy thereof filed
10 with the Department on or before the first day of October,
11 whereupon the Department shall proceed to administer and
12 enforce this Section as of the first day of January next
13 following such adoption and filing.
14 (h) The State Department of Revenue shall, upon
15 collecting any taxes as provided in this Section, pay the
16 taxes over to the State Treasurer as trustee for the
17 District. The taxes shall be held in a trust fund outside the
18 State Treasury. On or before the 25th day of each calendar
19 month, the State Department of Revenue shall prepare and
20 certify to the Comptroller of the State of Illinois the
21 amount to be paid to the District, which shall be the then
22 balance in the fund, less any amount determined by the
23 Department to be necessary for the payment of refunds. Within
24 10 days after receipt by the Comptroller of the certification
25 of the amount to be paid to the District, the Comptroller
26 shall cause an order to be drawn for payment for the amount
27 in accordance with the direction in the certification.
28 (Source: P.A. 91-51, eff. 6-30-99.)
29 Section 45. The Regional Transportation Authority Act is
30 amended by changing Section 4.03 as follows:
31 (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
32 Sec. 4.03. Taxes.
-140- LRB9110257SMdvam06
1 (a) In order to carry out any of the powers or purposes
2 of the Authority, the Board may by ordinance adopted with the
3 concurrence of 9 of the then Directors, impose throughout the
4 metropolitan region any or all of the taxes provided in this
5 Section. Except as otherwise provided in this Act, taxes
6 imposed under this Section and civil penalties imposed
7 incident thereto shall be collected and enforced by the State
8 Department of Revenue. The Department shall have the power to
9 administer and enforce the taxes and to determine all rights
10 for refunds for erroneous payments of the taxes.
11 (b) The Board may impose a public transportation tax
12 upon all persons engaged in the metropolitan region in the
13 business of selling at retail motor fuel for operation of
14 motor vehicles upon public highways. The tax shall be at a
15 rate not to exceed 5% of the gross receipts from the sales of
16 motor fuel in the course of the business. As used in this
17 Act, the term "motor fuel" shall have the same meaning as in
18 the Motor Fuel Tax Act. The Board may provide for details of
19 the tax. The provisions of any tax shall conform, as closely
20 as may be practicable, to the provisions of the Municipal
21 Retailers Occupation Tax Act, including without limitation,
22 conformity to penalties with respect to the tax imposed and
23 as to the powers of the State Department of Revenue to
24 promulgate and enforce rules and regulations relating to the
25 administration and enforcement of the provisions of the tax
26 imposed, except that reference in the Act to any municipality
27 shall refer to the Authority and the tax shall be imposed
28 only with regard to receipts from sales of motor fuel in the
29 metropolitan region, at rates as limited by this Section.
30 If the Board has not imposed a tax under this subsection
31 before the effective date of this amendatory Act of the 91st
32 General Assembly, then the Board shall not impose such a tax
33 on or after that date. If the Board has imposed a tax under
34 this subsection before the effective date of this amendatory
-141- LRB9110257SMdvam06
1 Act of 91st General Assembly, then the Board shall not
2 increase the rate of the tax on or after that date. If, as a
3 result of the provisions of this amendatory Act of the 91st
4 General Assembly, the rate of tax imposed on the sale of
5 motor fuel and gasohol by the Retailers' Occupation Tax Act
6 returns to 6.25%, then the prohibition against imposing a tax
7 on the sale of motor fuel and gasohol and the prohibition
8 against an increase in the rate of any tax already imposed on
9 the sale of motor fuel and gasohol are no longer in effect.
10 (c) In connection with the tax imposed under paragraph
11 (b) of this Section the Board may impose a tax upon the
12 privilege of using in the metropolitan region motor fuel for
13 the operation of a motor vehicle upon public highways, the
14 tax to be at a rate not in excess of the rate of tax imposed
15 under paragraph (b) of this Section. The Board may provide
16 for details of the tax.
17 If the Board has not imposed a tax under this subsection
18 before the effective date of this amendatory Act of the 91st
19 General Assembly, then the Board shall not impose such a tax
20 on or after that date. If the Board has imposed a tax under
21 this subsection before the effective date of this amendatory
22 Act of 91st General Assembly, then the Board shall not
23 increase the rate of the tax on or after that date. If, as a
24 result of the provisions of this amendatory Act of the 91st
25 General Assembly, the rate of tax imposed on the sale of
26 motor fuel and gasohol by the Retailers' Occupation Tax Act
27 returns to 6.25%, then the prohibition against imposing a tax
28 on the sale of motor fuel and gasohol and the prohibition
29 against an increase in the rate of any tax already imposed on
30 the sale of motor fuel and gasohol are no longer in effect.
31 (d) The Board may impose a motor vehicle parking tax
32 upon the privilege of parking motor vehicles at off-street
33 parking facilities in the metropolitan region at which a fee
34 is charged, and may provide for reasonable classifications in
-142- LRB9110257SMdvam06
1 and exemptions to the tax, for administration and enforcement
2 thereof and for civil penalties and refunds thereunder and
3 may provide criminal penalties thereunder, the maximum
4 penalties not to exceed the maximum criminal penalties
5 provided in the Retailers' Occupation Tax Act. The Authority
6 may collect and enforce the tax itself or by contract with
7 any unit of local government. The State Department of
8 Revenue shall have no responsibility for the collection and
9 enforcement unless the Department agrees with the Authority
10 to undertake the collection and enforcement. As used in this
11 paragraph, the term "parking facility" means a parking area
12 or structure having parking spaces for more than 2 vehicles
13 at which motor vehicles are permitted to park in return for
14 an hourly, daily, or other periodic fee, whether publicly or
15 privately owned, but does not include parking spaces on a
16 public street, the use of which is regulated by parking
17 meters.
18 (e) The Board may impose a Regional Transportation
19 Authority Retailers' Occupation Tax upon all persons engaged
20 in the business of selling tangible personal property at
21 retail in the metropolitan region. In Cook County the tax
22 rate shall be 1% of the gross receipts from sales of food for
23 human consumption that is to be consumed off the premises
24 where it is sold (other than alcoholic beverages, soft drinks
25 and food that has been prepared for immediate consumption)
26 and prescription and nonprescription medicines, drugs,
27 medical appliances and insulin, urine testing materials,
28 syringes and needles used by diabetics, and 3/4% of the gross
29 receipts from other taxable sales made in the course of that
30 business. In DuPage, Kane, Lake, McHenry, and Will Counties,
31 the tax rate shall be 1/4% of the gross receipts from all
32 taxable sales made in the course of that business. The tax
33 imposed under this Section and all civil penalties that may
34 be assessed as an incident thereof shall be collected and
-143- LRB9110257SMdvam06
1 enforced by the State Department of Revenue. The Department
2 shall have full power to administer and enforce this Section;
3 to collect all 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 Section, the Department and persons who
8 are subject to this Section shall have the same rights,
9 remedies, privileges, immunities, powers and duties, and be
10 subject to the same conditions, restrictions, limitations,
11 penalties, exclusions, exemptions and definitions of terms,
12 and employ the same modes of procedure, as are prescribed in
13 Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
14 (in respect to all provisions therein other than the State
15 rate of tax), 2c, 3 (except as to the disposition of taxes
16 and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
17 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13
18 of the Retailers' Occupation Tax Act and Section 3-7 of the
19 Uniform Penalty and Interest Act, as fully as if those
20 provisions were set forth herein.
21 If the Board has not imposed a tax under this subsection
22 on the sale of motor fuel or gasohol before the effective
23 date of this amendatory Act of the 91st General Assembly,
24 then the Board shall not impose such a tax on or after that
25 date. If the Board has imposed a tax under this subsection
26 on the sale of motor fuel or gasohol before the effective
27 date of this amendatory Act of the 91st General Assembly,
28 then the Board shall not increase the rate of the tax on or
29 after that date. If, as a result of the provisions of this
30 amendatory Act of the 91st General Assembly, the rate of tax
31 imposed on the sale of motor fuel and gasohol by the
32 Retailers' Occupation Tax Act returns to 6.25%, then the
33 prohibition against imposing a tax on the sale of motor fuel
34 and gasohol and the prohibition against an increase in the
-144- LRB9110257SMdvam06
1 rate of any tax already imposed on the sale of motor fuel and
2 gasohol are no longer in effect.
3 Persons subject to any tax imposed under the authority
4 granted in this Section may reimburse themselves for their
5 seller's tax liability hereunder by separately stating the
6 tax as an additional charge, which charge may be stated in
7 combination in a single amount with State taxes that sellers
8 are required to collect under the Use Tax Act, under any
9 bracket schedules the Department may prescribe.
10 Whenever the Department determines that a refund should
11 be made under this Section to a claimant instead of issuing a
12 credit memorandum, the Department shall notify the State
13 Comptroller, who shall cause the warrant to be drawn for the
14 amount specified, and to the person named, in the
15 notification from the Department. The refund shall be paid
16 by the State Treasurer out of the Regional Transportation
17 Authority tax fund established under paragraph (n) of this
18 Section.
19 If a tax is imposed under this subsection (e), a tax
20 shall also be imposed under subsections (f) and (g) of this
21 Section.
22 For the purpose of determining whether a tax authorized
23 under this Section is applicable, a retail sale by a producer
24 of coal or other mineral mined in Illinois, is a sale at
25 retail at the place where the coal or other mineral mined in
26 Illinois is extracted from the earth. This paragraph does not
27 apply to coal or other mineral when it is delivered or
28 shipped by the seller to the purchaser at a point outside
29 Illinois so that the sale is exempt under the Federal
30 Constitution as a sale in interstate or foreign commerce.
31 Nothing in this Section shall be construed to authorize
32 the Regional Transportation Authority to impose a tax upon
33 the privilege of engaging in any business that under the
34 Constitution of the United States may not be made the subject
-145- LRB9110257SMdvam06
1 of taxation by this State.
2 (f) If a tax has been imposed under paragraph (e), a tax
3 shall also be imposed upon all persons engaged, in the
4 metropolitan region in the business of making sales of
5 service, who as an incident to making the sales of service,
6 transfer tangible personal property within the metropolitan
7 region, either in the form of tangible personal property or
8 in the form of real estate as an incident to a sale of
9 service. In Cook County, the tax rate shall be: (1) 1% of
10 the serviceman's cost price of food prepared for immediate
11 consumption and transferred incident to a sale of service
12 subject to the service occupation tax by an entity licensed
13 under the Hospital Licensing Act or the Nursing Home Care Act
14 that is located in the metropolitan region; (2) 1% of the
15 selling price of food for human consumption that is to be
16 consumed off the premises where it is sold (other than
17 alcoholic beverages, soft drinks and food that has been
18 prepared for immediate consumption) and prescription and
19 nonprescription medicines, drugs, medical appliances and
20 insulin, urine testing materials, syringes and needles used
21 by diabetics; and (3) 3/4% of the selling price from other
22 taxable sales of tangible personal property transferred. In
23 DuPage, Kane, Lake, McHenry and Will Counties the rate shall
24 be 1/4% of the selling price of all tangible personal
25 property transferred.
26 The tax imposed under this paragraph and all civil
27 penalties that may be assessed as an incident thereof shall
28 be collected and enforced by the State Department of Revenue.
29 The Department shall have full power to administer and
30 enforce this paragraph; to collect all taxes and penalties
31 due hereunder; to dispose of taxes and penalties collected in
32 the manner hereinafter provided; and to determine all rights
33 to credit memoranda arising on account of the erroneous
34 payment of tax or penalty hereunder. In the administration
-146- LRB9110257SMdvam06
1 of and compliance with this paragraph, the Department and
2 persons who are subject to this paragraph shall have the same
3 rights, remedies, privileges, immunities, powers and duties,
4 and be subject to the same conditions, restrictions,
5 limitations, penalties, exclusions, exemptions and
6 definitions of terms, and employ the same modes of procedure,
7 as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
8 respect to all provisions therein other than the State rate
9 of tax), 4 (except that the reference to the State shall be
10 to the Authority), 5, 7, 8 (except that the jurisdiction to
11 which the tax shall be a debt to the extent indicated in that
12 Section 8 shall be the Authority), 9 (except as to the
13 disposition of taxes and penalties collected, and except that
14 the returned merchandise credit for this tax may not be taken
15 against any State tax), 10, 11, 12 (except the reference
16 therein to Section 2b of the Retailers' Occupation Tax Act),
17 13 (except that any reference to the State shall mean the
18 Authority), the first paragraph of Section 15, 16, 17, 18, 19
19 and 20 of the Service Occupation Tax Act and Section 3-7 of
20 the Uniform Penalty and Interest Act, as fully as if those
21 provisions were set forth herein.
22 If the Board has not imposed a tax under this subsection
23 on the selling price of motor fuel or gasohol before the
24 effective date of this amendatory Act of the 91st General
25 Assembly, then the Board shall not impose such a tax on or
26 after that date. If the Board has imposed a tax under this
27 subsection on the selling price of motor fuel or gasohol
28 before the effective date of this amendatory Act of the 91st
29 General Assembly, then the Board shall not increase the rate
30 of the tax on or after that date. If, as a result of the
31 provisions of this amendatory Act of the 91st General
32 Assembly, the rate of tax imposed on the sale of motor fuel
33 and gasohol by the Retailers' Occupation Tax Act returns to
34 6.25%, then the prohibition against imposing a tax on the
-147- LRB9110257SMdvam06
1 sale of motor fuel and gasohol and the prohibition against an
2 increase in the rate of any tax already imposed on the sale
3 of motor fuel and gasohol are no longer in effect.
4 Persons subject to any tax imposed under the authority
5 granted in this paragraph may reimburse themselves for their
6 serviceman's tax liability hereunder by separately stating
7 the tax as an additional charge, that charge may be stated in
8 combination in a single amount with State tax that servicemen
9 are authorized to collect under the Service Use Tax Act,
10 under any bracket schedules the Department may prescribe.
11 Whenever the Department determines that a refund should
12 be made under this paragraph to a claimant instead of issuing
13 a credit memorandum, the Department shall notify the State
14 Comptroller, who shall cause the warrant 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 Regional Transportation Authority tax
18 fund established under paragraph (n) of this Section.
19 Nothing in this paragraph shall be construed to authorize
20 the Authority to impose a tax upon the privilege of engaging
21 in any business that under the Constitution of the United
22 States may not be made the subject of taxation by the State.
23 (g) If a tax has been imposed under paragraph (e), a tax
24 shall also be imposed upon the privilege of using in the
25 metropolitan region, any item of tangible personal property
26 that is purchased outside the metropolitan region at retail
27 from a retailer, and that is titled or registered with an
28 agency of this State's government. In Cook County the tax
29 rate shall be 3/4% of the selling price of the tangible
30 personal property, as "selling price" is defined in the Use
31 Tax Act. In DuPage, Kane, Lake, McHenry and Will counties
32 the tax rate shall be 1/4% of the selling price of the
33 tangible personal property, as "selling price" is defined in
34 the Use Tax Act. The tax shall be collected from persons
-148- LRB9110257SMdvam06
1 whose Illinois address for titling or registration purposes
2 is given as being in the metropolitan region. The tax shall
3 be collected by the Department of Revenue for the Regional
4 Transportation Authority. The tax must be paid to the State,
5 or an exemption determination must be obtained from the
6 Department of Revenue, before the title or certificate of
7 registration for the property may be issued. The tax or proof
8 of exemption may be transmitted to the Department by way of
9 the State agency with which, or the State officer with whom,
10 the tangible personal property must be titled or registered
11 if the Department and the State agency or State officer
12 determine that this procedure will expedite the processing of
13 applications for title or registration.
14 The Department shall have full power to administer and
15 enforce this paragraph; to collect all taxes, penalties and
16 interest due hereunder; to dispose of taxes, penalties and
17 interest collected in the manner hereinafter provided; and to
18 determine all rights to credit memoranda or refunds arising
19 on account of the erroneous payment of tax, penalty or
20 interest hereunder. In the administration of and compliance
21 with this paragraph, the Department and persons who are
22 subject to this paragraph shall have the same rights,
23 remedies, privileges, immunities, powers and duties, and be
24 subject to the same conditions, restrictions, limitations,
25 penalties, exclusions, exemptions and definitions of terms
26 and employ the same modes of procedure, as are prescribed in
27 Sections 2 (except the definition of "retailer maintaining a
28 place of business in this State"), 3 through 3-80 (except
29 provisions pertaining to the State rate of tax, and except
30 provisions concerning collection or refunding of the tax by
31 retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
32 pertaining to claims by retailers and except the last
33 paragraph concerning refunds), 20, 21 and 22 of the Use Tax
34 Act, and are not inconsistent with this paragraph, as fully
-149- LRB9110257SMdvam06
1 as if those provisions were set forth herein.
2 If the Board has not imposed a tax under this subsection
3 on the use of motor fuel or gasohol before the effective date
4 of this amendatory Act of the 91st General Assembly, then the
5 Board shall not impose such a tax on or after that date. If
6 the Board has imposed a tax under this subsection on the use
7 of motor fuel or gasohol before the effective date of this
8 amendatory Act of the 91st General Assembly, then the Board
9 shall not increase the rate of the tax on or after that date.
10 If, as a result of the provisions of this amendatory Act of
11 the 91st General Assembly, the rate of tax imposed on the
12 sale of motor fuel and gasohol by the Retailers' Occupation
13 Tax Act returns to 6.25%, then the prohibition against
14 imposing a tax on the sale of motor fuel and gasohol and the
15 prohibition against an increase in the rate of any tax
16 already imposed on the sale of motor fuel and gasohol are no
17 longer in effect.
18 Whenever the Department determines that a refund should
19 be made under this paragraph to a claimant instead of issuing
20 a 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 Regional Transportation Authority tax
25 fund established under paragraph (n) of this Section.
26 (h) The Authority may impose a replacement vehicle tax
27 of $50 on any passenger car as defined in Section 1-157 of
28 the Illinois Vehicle Code purchased within the metropolitan
29 region by or on behalf of an insurance company to replace a
30 passenger car of an insured person in settlement of a total
31 loss claim. The tax imposed may not become effective before
32 the first day of the month following the passage of the
33 ordinance imposing the tax and receipt of a certified copy of
34 the ordinance by the Department of Revenue. The Department
-150- LRB9110257SMdvam06
1 of Revenue shall collect the tax for the Authority in
2 accordance with Sections 3-2002 and 3-2003 of the Illinois
3 Vehicle Code.
4 The Department shall immediately pay over to the State
5 Treasurer, ex officio, as trustee, all taxes collected
6 hereunder. On or before the 25th day of each calendar month,
7 the Department shall prepare and certify to the Comptroller
8 the disbursement of stated sums of money to the Authority.
9 The amount to be paid to the Authority shall be the amount
10 collected hereunder during the second preceding calendar
11 month by the Department, less any amount determined by the
12 Department to be necessary for the payment of refunds.
13 Within 10 days after receipt by the Comptroller of the
14 disbursement certification to the Authority provided for in
15 this Section to be given to the Comptroller by the
16 Department, the Comptroller shall cause the orders to be
17 drawn for that amount in accordance with the directions
18 contained in the certification.
19 (i) The Board may not impose any other taxes except as
20 it may from time to time be authorized by law to impose.
21 (j) A certificate of registration issued by the State
22 Department of Revenue to a retailer under the Retailers'
23 Occupation Tax Act or under the Service Occupation Tax Act
24 shall permit the registrant to engage in a business that is
25 taxed under the tax imposed under paragraphs (b), (e), (f) or
26 (g) of this Section and no additional registration shall be
27 required under the tax. A certificate issued under the Use
28 Tax Act or the Service Use Tax Act shall be applicable with
29 regard to any tax imposed under paragraph (c) of this
30 Section.
31 (k) The provisions of any tax imposed under paragraph
32 (c) of this Section shall conform as closely as may be
33 practicable to the provisions of the Use Tax Act, including
34 without limitation conformity as to penalties with respect to
-151- LRB9110257SMdvam06
1 the tax imposed and as to the powers of the State Department
2 of Revenue to promulgate and enforce rules and regulations
3 relating to the administration and enforcement of the
4 provisions of the tax imposed. The taxes shall be imposed
5 only on use within the metropolitan region and at rates as
6 provided in the paragraph.
7 (l) The Board in imposing any tax as provided in
8 paragraphs (b) and (c) of this Section, shall, after seeking
9 the advice of the State Department of Revenue, provide means
10 for retailers, users or purchasers of motor fuel for purposes
11 other than those with regard to which the taxes may be
12 imposed as provided in those paragraphs to receive refunds of
13 taxes improperly paid, which provisions may be at variance
14 with the refund provisions as applicable under the Municipal
15 Retailers Occupation Tax Act. The State Department of
16 Revenue may provide for certificates of registration for
17 users or purchasers of motor fuel for purposes other than
18 those with regard to which taxes may be imposed as provided
19 in paragraphs (b) and (c) of this Section to facilitate the
20 reporting and nontaxability of the exempt sales or uses.
21 (m) Any ordinance imposing or discontinuing any tax
22 under this Section shall be adopted and a certified copy
23 thereof filed with the Department on or before June 1,
24 whereupon the Department of Revenue shall proceed to
25 administer and enforce this Section on behalf of the Regional
26 Transportation Authority as of September 1 next following
27 such adoption and filing. Beginning January 1, 1992, an
28 ordinance or resolution imposing or discontinuing the tax
29 hereunder shall be adopted and a certified copy thereof filed
30 with the Department on or before the first day of July,
31 whereupon the Department shall proceed to administer and
32 enforce this Section as of the first day of October next
33 following such adoption and filing. Beginning January 1,
34 1993, an ordinance or resolution imposing or discontinuing
-152- LRB9110257SMdvam06
1 the tax hereunder shall be adopted and a certified copy
2 thereof filed with the Department on or before the first day
3 of October, whereupon the Department shall proceed to
4 administer and enforce this Section as of the first day of
5 January next following such adoption and filing.
6 (n) The State Department of Revenue shall, upon
7 collecting any taxes as provided in this Section, pay the
8 taxes over to the State Treasurer as trustee for the
9 Authority. The taxes shall be held in a trust fund outside
10 the State Treasury. On or before the 25th day of each
11 calendar month, the State Department of Revenue shall prepare
12 and certify to the Comptroller of the State of Illinois the
13 amount to be paid to the Authority, which shall be the then
14 balance in the fund, less any amount determined by the
15 Department to be necessary for the payment of refunds. The
16 State Department of Revenue shall also certify to the
17 Authority the amount of taxes collected in each County other
18 than Cook County in the metropolitan region less the amount
19 necessary for the payment of refunds to taxpayers in the
20 County. With regard to the County of Cook, the certification
21 shall specify the amount of taxes collected within the City
22 of Chicago less the amount necessary for the payment of
23 refunds to taxpayers in the City of Chicago and the amount
24 collected in that portion of Cook County outside of Chicago
25 less the amount necessary for the payment of refunds to
26 taxpayers in that portion of Cook County outside of Chicago.
27 Within 10 days after receipt by the Comptroller of the
28 certification of the amount to be paid to the Authority, the
29 Comptroller shall cause an order to be drawn for the payment
30 for the amount in accordance with the direction in the
31 certification.
32 In addition to the disbursement required by the preceding
33 paragraph, an allocation shall be made in July 1991 and each
34 year thereafter to the Regional Transportation Authority.
-153- LRB9110257SMdvam06
1 The allocation shall be made in an amount equal to the
2 average monthly distribution during the preceding calendar
3 year (excluding the 2 months of lowest receipts) and the
4 allocation shall include the amount of average monthly
5 distribution from the Regional Transportation Authority
6 Occupation and Use Tax Replacement Fund. The distribution
7 made in July 1992 and each year thereafter under this
8 paragraph and the preceding paragraph shall be reduced by the
9 amount allocated and disbursed under this paragraph in the
10 preceding calendar year. The Department of Revenue shall
11 prepare and certify to the Comptroller for disbursement the
12 allocations made in accordance with this paragraph.
13 (o) Failure to adopt a budget ordinance or otherwise to
14 comply with Section 4.01 of this Act or to adopt a Five-year
15 Program or otherwise to comply with paragraph (b) of Section
16 2.01 of this Act shall not affect the validity of any tax
17 imposed by the Authority otherwise in conformity with law.
18 (p) At no time shall a public transportation tax or
19 motor vehicle parking tax authorized under paragraphs (b),
20 (c) and (d) of this Section be in effect at the same time as
21 any retailers' occupation, use or service occupation tax
22 authorized under paragraphs (e), (f) and (g) of this Section
23 is in effect.
24 Any taxes imposed under the authority provided in
25 paragraphs (b), (c) and (d) shall remain in effect only until
26 the time as any tax authorized by paragraphs (e), (f) or (g)
27 of this Section are imposed and becomes effective. Once any
28 tax authorized by paragraphs (e), (f) or (g) is imposed the
29 Board may not reimpose taxes as authorized in paragraphs (b),
30 (c) and (d) of the Section unless any tax authorized by
31 paragraphs (e), (f) or (g) of this Section becomes
32 ineffective by means other than an ordinance of the Board.
33 (q) Any existing rights, remedies and obligations
34 (including enforcement by the Regional Transportation
-154- LRB9110257SMdvam06
1 Authority) arising under any tax imposed under paragraphs
2 (b), (c) or (d) of this Section shall not be affected by the
3 imposition of a tax under paragraphs (e), (f) or (g) of this
4 Section.
5 (Source: P.A. 91-51, eff. 6-30-99.)
6 Section 50. The Water Commission Act of 1985 is amended
7 by changing Section 4 as follows:
8 (70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
9 Sec. 4. Taxes.
10 (a) The board of commissioners of any county water
11 commission may, by ordinance, impose throughout the territory
12 of the commission any or all of the taxes provided in this
13 Section for its corporate purposes. However, no county water
14 commission may impose any such tax unless the commission
15 certifies the proposition of imposing the tax to the proper
16 election officials, who shall submit the proposition to the
17 voters residing in the territory at an election in accordance
18 with the general election law, and the proposition has been
19 approved by a majority of those voting on the proposition.
20 The proposition shall be in the form provided in Section
21 5 or shall be substantially in the following form:
22 -------------------------------------------------------------
23 Shall the (insert corporate
24 name of county water commission) YES
25 impose (state type of tax or ------------------------
26 taxes to be imposed) at the NO
27 rate of 1/4%?
28 -------------------------------------------------------------
29 Taxes imposed under this Section and civil penalties
30 imposed incident thereto shall be collected and enforced by
31 the State Department of Revenue. The Department shall have
32 the power to administer and enforce the taxes and to
-155- LRB9110257SMdvam06
1 determine all rights for refunds for erroneous payments of
2 the taxes.
3 (b) The board of commissioners may impose a County Water
4 Commission Retailers' Occupation Tax upon all persons engaged
5 in the business of selling tangible personal property at
6 retail in the territory of the commission at a rate of 1/4%
7 of the gross receipts from the sales made in the course of
8 such business within the territory. The tax imposed under
9 this paragraph and all civil penalties that may be assessed
10 as an incident thereof shall be collected and enforced by the
11 State Department of Revenue. The Department shall have full
12 power to administer and enforce this paragraph; to collect
13 all taxes and penalties due hereunder; to dispose of taxes
14 and penalties so collected in the manner hereinafter
15 provided; and to determine all rights to credit memoranda
16 arising on account of the erroneous payment of tax or penalty
17 hereunder. In the administration of, and compliance with,
18 this paragraph, the Department and persons who are subject to
19 this paragraph shall have the same rights, remedies,
20 privileges, immunities, powers and duties, and be subject to
21 the same conditions, restrictions, limitations, penalties,
22 exclusions, exemptions and definitions of terms, and employ
23 the same modes of procedure, as are prescribed in Sections 1,
24 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect
25 to all provisions therein other than the State rate of tax
26 except that food for human consumption that is to be consumed
27 off the premises where it is sold (other than alcoholic
28 beverages, soft drinks, and food that has been prepared for
29 immediate consumption) and prescription and nonprescription
30 medicine, drugs, medical appliances and insulin, urine
31 testing materials, syringes, and needles used by diabetics,
32 for human use, shall not be subject to tax hereunder), 2c, 3
33 (except as to the disposition of taxes and penalties
34 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
-156- LRB9110257SMdvam06
1 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
2 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
3 Penalty and Interest Act, as fully as if those provisions
4 were set forth herein.
5 If the board of commissioners has not imposed a tax under
6 this subsection on the sale of motor fuel or gasohol before
7 the effective date of this amendatory Act of the 91st General
8 Assembly, then the board shall not impose such a tax on or
9 after that date. If the board of commissioners has imposed a
10 tax under this subsection on the sale of motor fuel or
11 gasohol before the effective date of this amendatory Act of
12 the 91st General Assembly, then the board shall not increase
13 the rate of the tax on or after that date. If, as a result of
14 the provisions of this amendatory Act of the 91st General
15 Assembly, the rate of tax imposed on the sale of motor fuel
16 and gasohol by the Retailers' Occupation Tax Act returns to
17 6.25%, then the prohibition against imposing a tax on the
18 sale of motor fuel and gasohol and the prohibition against an
19 increase in the rate of any tax already imposed on the sale
20 of motor fuel and gasohol are no longer in effect.
21 Persons subject to any tax imposed under the authority
22 granted in this paragraph may reimburse themselves for their
23 seller's tax liability hereunder by separately stating the
24 tax as an additional charge, which charge may be stated in
25 combination, in a single amount, with State taxes that
26 sellers are required to collect under the Use Tax Act and
27 under subsection (e) of Section 4.03 of the Regional
28 Transportation Authority Act, in accordance with such bracket
29 schedules as the Department may prescribe.
30 Whenever the Department determines that a refund should
31 be made under this paragraph to a claimant instead of issuing
32 a credit memorandum, the Department shall notify the State
33 Comptroller, who shall cause the warrant to be drawn for the
34 amount specified, and to the person named, in the
-157- LRB9110257SMdvam06
1 notification from the Department. The refund shall be paid
2 by the State Treasurer out of a county water commission tax
3 fund established under paragraph (g) of this Section.
4 For the purpose of determining whether a tax authorized
5 under this paragraph is applicable, a retail sale by a
6 producer of coal or other mineral mined in Illinois is a sale
7 at retail at the place where the coal or other mineral mined
8 in 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.
13 If a tax is imposed under this subsection (b) a tax shall
14 also be imposed under subsections (c) and (d) of this
15 Section.
16 Nothing in this paragraph shall be construed to authorize
17 a county water commission to impose a tax upon the privilege
18 of engaging in any business which under the Constitution of
19 the United States may not be made the subject of taxation by
20 this State.
21 (c) If a tax has been imposed under subsection (b), a
22 tax shall also be imposed upon all persons engaged, in the
23 territory of the commission, in the business of making sales
24 of service, who, as an incident to making the sales of
25 service, transfer tangible personal property within the
26 territory. The tax rate shall be 1/4% of the selling price of
27 tangible personal property so transferred within the
28 territory. The tax imposed under this paragraph and all
29 civil penalties that may be assessed as an incident thereof
30 shall be collected and enforced by the State Department of
31 Revenue. The Department shall have full power to administer
32 and enforce this paragraph; to collect all taxes and
33 penalties due hereunder; to dispose of taxes and penalties so
34 collected in the manner hereinafter provided; and to
-158- LRB9110257SMdvam06
1 determine all rights to credit memoranda arising on account
2 of the erroneous payment of tax or penalty hereunder. In the
3 administration of, and compliance with, this paragraph, the
4 Department and persons who are subject to this paragraph
5 shall have the same rights, remedies, privileges, immunities,
6 powers and duties, and be subject to the same conditions,
7 restrictions, limitations, penalties, exclusions, exemptions
8 and definitions of terms, and employ the same modes of
9 procedure, as are prescribed in Sections 1a-1, 2 (except that
10 the reference to State in the definition of supplier
11 maintaining a place of business in this State shall mean the
12 territory of the commission), 2a, 3 through 3-50 (in respect
13 to all provisions therein other than the State rate of tax
14 except that food for human consumption that is to be consumed
15 off the premises where it is sold (other than alcoholic
16 beverages, soft drinks, and food that has been prepared for
17 immediate consumption) and prescription and nonprescription
18 medicines, drugs, medical appliances and insulin, urine
19 testing materials, syringes, and needles used by diabetics,
20 for human use, shall not be subject to tax hereunder), 4
21 (except that the reference to the State shall be to the
22 territory of the commission), 5, 7, 8 (except that the
23 jurisdiction to which the tax shall be a debt to the extent
24 indicated in that Section 8 shall be the commission), 9
25 (except as to the disposition of taxes and penalties
26 collected and except that the returned merchandise credit for
27 this tax may not be taken against any State tax), 10, 11, 12
28 (except the reference therein to Section 2b of the Retailers'
29 Occupation Tax Act), 13 (except that any reference to the
30 State shall mean the territory of the commission), the first
31 paragraph of Section 15, 15.5, 16, 17, 18, 19 and 20 of the
32 Service Occupation Tax Act as fully as if those provisions
33 were set forth herein.
34 If the board of commissioners has not imposed a tax under
-159- LRB9110257SMdvam06
1 this subsection on the selling price of motor fuel or gasohol
2 before the effective date of this amendatory Act of the 91st
3 General Assembly, then the board shall not impose such a tax
4 on or after that date. If the board of commissioners has
5 imposed a tax under this subsection on the selling price of
6 motor fuel or gasohol before the effective date of this
7 amendatory Act of the 91st General Assembly, then the board
8 shall not increase the rate of the tax on or after that date.
9 If, as a result of the provisions of this amendatory Act of
10 the 91st General Assembly, the rate of tax imposed on the
11 sale of motor fuel and gasohol by the Retailers' Occupation
12 Tax Act returns to 6.25%, then the prohibition against
13 imposing a tax on the sale of motor fuel and gasohol and the
14 prohibition against an increase in the rate of any tax
15 already imposed on the sale of motor fuel and gasohol are no
16 longer in effect.
17 Persons subject to any tax imposed under the authority
18 granted in this paragraph may reimburse themselves for their
19 serviceman's tax liability hereunder by separately stating
20 the tax as an additional charge, which charge may be stated
21 in combination, in a single amount, with State tax that
22 servicemen are authorized to collect under the Service Use
23 Tax Act, and any tax for which servicemen may be liable under
24 subsection (f) of Sec. 4.03 of the Regional Transportation
25 Authority Act, in accordance with such bracket schedules as
26 the Department may prescribe.
27 Whenever the Department determines that a refund should
28 be made under this paragraph to a claimant instead of issuing
29 a credit memorandum, the Department shall notify the State
30 Comptroller, who shall cause the warrant to be drawn for the
31 amount specified, and to the person named, in the
32 notification from the Department. The refund shall be paid
33 by the State Treasurer out of a county water commission tax
34 fund established under paragraph (g) of this Section.
-160- LRB9110257SMdvam06
1 Nothing in this paragraph shall be construed to authorize
2 a county water commission to impose a tax upon the privilege
3 of engaging in any business which under the Constitution of
4 the United States may not be made the subject of taxation by
5 the State.
6 (d) If a tax has been imposed under subsection (b), a
7 tax shall also imposed upon the privilege of using, in the
8 territory of the commission, any item of tangible personal
9 property that is purchased outside the territory at retail
10 from a retailer, and that is titled or registered with an
11 agency of this State's government, at a rate of 1/4% of the
12 selling price of the tangible personal property within the
13 territory, as "selling price" is defined in the Use Tax Act.
14 The tax shall be collected from persons whose Illinois
15 address for titling or registration purposes is given as
16 being in the territory. The tax shall be collected by the
17 Department of Revenue for a county water commission. The tax
18 must be paid to the State, or an exemption determination must
19 be obtained from the Department of Revenue, before the title
20 or certificate of registration for the property may be
21 issued. The tax or proof of exemption may be transmitted to
22 the Department by way of the State agency with which, or the
23 State officer with whom, the tangible personal property must
24 be titled or registered if the Department and the State
25 agency or State officer determine that this procedure will
26 expedite the processing of applications for title or
27 registration.
28 The Department shall have full power to administer and
29 enforce this paragraph; to collect all taxes, penalties and
30 interest due hereunder; to dispose of taxes, penalties and
31 interest so collected in the manner hereinafter provided; and
32 to determine all rights to credit memoranda or refunds
33 arising on account of the erroneous payment of tax, penalty
34 or interest hereunder. In the administration of, and
-161- LRB9110257SMdvam06
1 compliance with this paragraph, the Department and persons
2 who are subject to this paragraph shall have the same rights,
3 remedies, privileges, immunities, powers and duties, and be
4 subject to the same conditions, restrictions, limitations,
5 penalties, exclusions, exemptions and definitions of terms
6 and employ the same modes of procedure, as are prescribed in
7 Sections 2 (except the definition of "retailer maintaining a
8 place of business in this State"), 3 through 3-80 (except
9 provisions pertaining to the State rate of tax, and except
10 provisions concerning collection or refunding of the tax by
11 retailers, and except that food for human consumption that is
12 to be consumed off the premises where it is sold (other than
13 alcoholic beverages, soft drinks, and food that has been
14 prepared for immediate consumption) and prescription and
15 nonprescription medicines, drugs, medical appliances and
16 insulin, urine testing materials, syringes, and needles used
17 by diabetics, for human use, shall not be subject to tax
18 hereunder), 4, 11, 12, 12a, 14, 15, 19 (except the portions
19 pertaining to claims by retailers and except the last
20 paragraph concerning refunds), 20, 21 and 22 of the Use Tax
21 Act and Section 3-7 of the Uniform Penalty and Interest Act
22 that are not inconsistent with this paragraph, as fully as if
23 those provisions were set forth herein.
24 If the board of commissioners has not imposed a tax under
25 this subsection on the use of motor fuel or gasohol before
26 the effective date of this amendatory Act of the 91st General
27 Assembly, then the board shall not impose such a tax on or
28 after that date. If the board of commissioners has imposed a
29 tax under this subsection on the use of motor fuel or gasohol
30 before the effective date of this amendatory Act of the 91st
31 General Assembly, then the board shall not increase the rate
32 of the tax on or after that date. If, as a result of the
33 provisions of this amendatory Act of the 91st General
34 Assembly, the rate of tax imposed on the sale of motor fuel
-162- LRB9110257SMdvam06
1 and gasohol by the Retailers' Occupation Tax Act returns to
2 6.25%, then the prohibition against imposing a tax on the
3 sale of motor fuel and gasohol and the prohibition against an
4 increase in the rate of any tax already imposed on the sale
5 of motor fuel and gasohol are no longer in effect.
6 Whenever the Department determines that a refund should
7 be made under this paragraph to a claimant instead of issuing
8 a credit memorandum, the Department shall notify the State
9 Comptroller, who shall cause the order to be drawn for the
10 amount specified, and to the person named, in the
11 notification from the Department. The refund shall be paid
12 by the State Treasurer out of a county water commission tax
13 fund established under paragraph (g) of this Section.
14 (e) A certificate of registration issued by the State
15 Department of Revenue to a retailer under the Retailers'
16 Occupation Tax Act or under the Service Occupation Tax Act
17 shall permit the registrant to engage in a business that is
18 taxed under the tax imposed under paragraphs (b), (c) or (d)
19 of this Section and no additional registration shall be
20 required under the tax. A certificate issued under the Use
21 Tax Act or the Service Use Tax Act shall be applicable with
22 regard to any tax imposed under paragraph (c) of this
23 Section.
24 (f) Any ordinance imposing or discontinuing any tax
25 under this Section shall be adopted and a certified copy
26 thereof filed with the Department on or before June 1,
27 whereupon the Department of Revenue shall proceed to
28 administer and enforce this Section on behalf of the county
29 water commission as of September 1 next following the
30 adoption and filing. Beginning January 1, 1992, an ordinance
31 or resolution imposing or discontinuing the tax hereunder
32 shall be adopted and a certified copy thereof filed with the
33 Department on or before the first day of July, whereupon the
34 Department shall proceed to administer and enforce this
-163- LRB9110257SMdvam06
1 Section as of the first day of October next following such
2 adoption and filing. Beginning January 1, 1993, an ordinance
3 or resolution imposing or discontinuing the tax hereunder
4 shall be adopted and a certified copy thereof filed with the
5 Department on or before the first day of October, whereupon
6 the Department shall proceed to administer and enforce this
7 Section as of the first day of January next following such
8 adoption and filing.
9 (g) The State Department of Revenue shall, upon
10 collecting any taxes as provided in this Section, pay the
11 taxes over to the State Treasurer as trustee for the
12 commission. The taxes shall be held in a trust fund outside
13 the State Treasury. On or before the 25th day of each
14 calendar month, the State Department of Revenue shall prepare
15 and certify to the Comptroller of the State of Illinois the
16 amount to be paid to the commission, which shall be the then
17 balance in the fund, less any amount determined by the
18 Department to be necessary for the payment of refunds. Within
19 10 days after receipt by the Comptroller of the certification
20 of the amount to be paid to the commission, the Comptroller
21 shall cause an order to be drawn for the payment for the
22 amount in accordance with the direction in the certification.
23 (Source: P.A. 91-51, eff. 6-30-99.)
24 Section 99. Effective date. This Act takes effect upon
25 becoming law, except that Sections 5 through 20 take effect
26 October 1, 2000.".