State of Illinois
92nd General Assembly
Legislation

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92_HB2441

 
                                              LRB9203211SMdvA

 1        AN ACT concerning taxation.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section   3.    The   Department   of  Natural  Resources
 5    (Conservation)  Law  of  the  Civil  Administrative  Code  of
 6    Illinois is amended by adding Section 805-45 as follows:

 7        (20 ILCS 805/805-45 new)
 8        Sec. 805-45.  Weatherization and heat conservation  loans
 9    and  grants.   Subject to appropriation, the Department shall
10    administer a program in which the Department  provides  loans
11    and   grants   in   the   amount  of  90%  of  the  costs  of
12    weatherization and heat conservation projects.  The other 10%
13    of the funding must come from local funding.   Weatherization
14    and  heat  conservation  projects  eligible  for  the program
15    consist of the installation of fuel efficient furnaces, water
16    heaters, insulation, energy efficient windows,  storm  doors,
17    caulking,  and  renewable  or  alternative sources of energy.
18    Entities   eligible   for   the   loans   and   grants    are
19    municipalities,  public  and  parochial  schools,  hospitals,
20    churches, and other nonprofit organizations.

21        Section  5.   The State Revenue Sharing Act is amended by
22    changing Section 1 as follows:

23        (30 ILCS 115/1) (from Ch. 85, par. 611)
24        Sec. 1. Local Government Distributive Fund. Through  June
25    30, 1994, as soon as may be after the first day of each month
26    the  Department  of Revenue shall certify to the Treasurer an
27    amount equal to 1/12 of the net revenue realized from the tax
28    imposed by subsections (a) and (b)  of  Section  201  of  the
29    Illinois   Income   Tax   Act  during  the  preceding  month.
 
                            -2-               LRB9203211SMdvA
 1    Beginning July 1, 1994, and continuing through June 30, 1995,
 2    as soon as may be after the first  day  of  each  month,  the
 3    Department  of  Revenue  shall  certify  to  the Treasurer an
 4    amount equal to 1/11 of the net revenue realized from the tax
 5    imposed by subsections (a) and (b)  of  Section  201  of  the
 6    Illinois Income Tax Act during the preceding month. Beginning
 7    July  1,  1995, and continuing through June 30, 2001, as soon
 8    as may be after the first day of each month,  the  Department
 9    of  Revenue shall certify to the Treasurer an amount equal to
10    1/10 of the net revenue realized  from  the  tax  imposed  by
11    subsections (a) and (b) of Section 201 of the Illinois Income
12    Tax  Act  during the preceding month. Beginning July 1, 2001,
13    as soon as may be after the first  day  of  each  month,  the
14    Department  of  Revenue  shall  certify  to  the Treasurer an
15    amount equal to 1/9 of the net revenue realized from the  tax
16    imposed  by  subsections  (a)  and  (b) of Section 201 of the
17    Illinois Income Tax  Act  during  the  preceding  month.  Net
18    revenue  realized for a month shall be defined as the revenue
19    from the tax imposed by subsections (a) and  (b)  of  Section
20    201  of the Illinois Income Tax Act which is deposited in the
21    General Revenue Fund, the Education Assistance Fund  and  the
22    Income  Tax  Surcharge  Local  Government  Distributive  Fund
23    during  the  month  minus  the amount paid out of the General
24    Revenue Fund in State warrants  during  that  same  month  as
25    refunds  to  taxpayers for overpayment of liability under the
26    tax imposed by subsections (a) and (b) of Section 201 of  the
27    Illinois Income Tax Act.  Upon receipt of such certification,
28    the Treasurer shall transfer from the General Revenue Fund to
29    a  special  fund  in  the  State treasury, to be known as the
30    "Local Government Distributive Fund",  the  amount  shown  on
31    such certification.
32        All  amounts  paid into the Local Government Distributive
33    Fund in accordance with this Section and  allocated  pursuant
34    to this Act are appropriated on a continuing basis.
 
                            -3-               LRB9203211SMdvA
 1    (Source: P.A. 88-89.)

 2        Section  7.   The Illinois Procurement Code is amended by
 3    adding Section 45-70 as follows:

 4        (30 ILCS 500/45-70 new)
 5        Sec. 45-70.   Energy-efficient  design.   All  new  State
 6    facilities  shall  include,  if  practical,  the  most modern
 7    energy-efficient design, including active and  passive  solar
 8    heating,  as  those  terms  are  defined by the Department of
 9    Natural Resources.

10        Section 10.  The Illinois Income Tax Act  is  amended  by
11    changing Section 901 and adding Section 213 as follows:

12        (35 ILCS 5/213 new)
13        Sec.  213.   Weatherization  and  heat  conservation  tax
14    credit.   Beginning  with  taxable  years  ending on or after
15    December 31, 2001 and ending with taxable years ending on  or
16    before  December  30,  2006,  each  taxpayer is entitled to a
17    credit against the tax imposed by subsections (a) and (b)  of
18    Section  201  in the amount of 10% of the amount spent by the
19    taxpayer in  a  taxable  year  for  weatherization  and  heat
20    conservation   measures,   including   the   installation  of
21    fuel-efficient   furnaces,   water    heaters,    insulation,
22    energy-efficient   windows,   storm   doors,   caulking,  and
23    renewable or alternative sources of energy.  The  tax  credit
24    may not reduce the taxpayer's liability to less than zero and
25    may not be carried forward to a subsequent taxable year.

26        (35 ILCS 5/901) (from Ch. 120, par. 9-901)
27        Sec. 901.  Collection Authority.
28        (a)  In general.
29        The  Department  shall  collect the taxes imposed by this
 
                            -4-               LRB9203211SMdvA
 1    Act.  The Department shall collect certified past  due  child
 2    support  amounts  under Section 2505-650 of the Department of
 3    Revenue Law (20 ILCS 2505/2505-650).  Except as  provided  in
 4    subsections  (c)  and  (e)  of  this Section, money collected
 5    pursuant to subsections (a) and (b) of Section  201  of  this
 6    Act  shall be paid into the General Revenue Fund in the State
 7    treasury; money collected pursuant to subsections (c) and (d)
 8    of Section 201 of this Act shall be paid  into  the  Personal
 9    Property  Tax  Replacement  Fund, a special fund in the State
10    Treasury; and money collected under Section 2505-650  of  the
11    Department  of  Revenue  Law (20 ILCS 2505/2505-650) shall be
12    paid into the Child Support Enforcement Trust Fund, a special
13    fund outside the State Treasury, or to the State Disbursement
14    Unit established under Section 10-26 of the  Illinois  Public
15    Aid Code, as directed by the Department of Public Aid.
16        (b)  Local Governmental Distributive Fund.
17        Beginning August 1, 1969, and continuing through June 30,
18    1994,  the  Treasurer  shall  transfer  each  month  from the
19    General Revenue Fund to a special fund in the State treasury,
20    to be known as the "Local Government Distributive  Fund",  an
21    amount equal to 1/12 of the net revenue realized from the tax
22    imposed by subsections (a) and (b) of Section 201 of this Act
23    during  the  preceding  month.  Beginning  July  1, 1994, and
24    continuing  through  June  30,  1995,  the  Treasurer   shall
25    transfer  each  month  from  the  General Revenue Fund to the
26    Local Government Distributive Fund an amount equal to 1/11 of
27    the net revenue realized from the tax imposed by  subsections
28    (a)  and  (b) of Section 201 of this Act during the preceding
29    month.  Beginning July 1, 1995, and continuing  through  June
30    30,  2001,  the  Treasurer shall transfer each month from the
31    General Revenue Fund to  the  Local  Government  Distributive
32    Fund an amount equal to 1/10 of the net revenue realized from
33    the  tax imposed by subsections (a) and (b) of Section 201 of
34    the Illinois Income  Tax  Act  during  the  preceding  month.
 
                            -5-               LRB9203211SMdvA
 1    Beginning  July  1,  2001,  the Treasurer shall transfer each
 2    month from the General Revenue Fund to the  Local  Government
 3    Distributive  Fund  an amount equal to 1/9 of the net revenue
 4    realized from the tax imposed by subsections (a) and  (b)  of
 5    Section  201  of  this  Act  during  the preceding month. Net
 6    revenue realized for a month shall be defined as the  revenue
 7    from  the  tax  imposed by subsections (a) and (b) of Section
 8    201 of this Act which is deposited  in  the  General  Revenue
 9    Fund,  the  Educational  Assistance  Fund  and the Income Tax
10    Surcharge Local Government Distributive Fund during the month
11    minus the amount paid out of  the  General  Revenue  Fund  in
12    State warrants during that same month as refunds to taxpayers
13    for  overpayment  of  liability  under  the  tax  imposed  by
14    subsections (a) and (b) of Section 201 of this Act.

15        (c)  Deposits Into Income Tax Refund Fund.
16             (1)  Beginning  on  January  1, 1989 and thereafter,
17        the Department shall deposit a percentage of the  amounts
18        collected  pursuant  to  subsections (a) and (b)(1), (2),
19        and (3), of Section 201 of this Act into a  fund  in  the
20        State  treasury known as the Income Tax Refund Fund.  The
21        Department shall deposit 6% of such  amounts  during  the
22        period  beginning  January 1, 1989 and ending on June 30,
23        1989.  Beginning with State fiscal year 1990 and for each
24        fiscal year thereafter, the percentage deposited into the
25        Income Tax Refund Fund during a fiscal year shall be  the
26        Annual  Percentage.   For fiscal years 1999 through 2001,
27        the Annual Percentage  shall  be  7.1%.   For  all  other
28        fiscal  years,  the Annual Percentage shall be calculated
29        as a fraction, the numerator of which shall be the amount
30        of refunds approved for payment by the Department  during
31        the  preceding  fiscal year as a result of overpayment of
32        tax liability under subsections (a) and (b)(1), (2),  and
33        (3)  of  Section  201 of this Act plus the amount of such
34        refunds remaining approved but unpaid at the end  of  the
 
                            -6-               LRB9203211SMdvA
 1        preceding  fiscal year, the denominator of which shall be
 2        the  amounts  which  will  be   collected   pursuant   to
 3        subsections  (a)  and (b)(1), (2), and (3) of Section 201
 4        of this  Act  during  the  preceding  fiscal  year.   The
 5        Director  of  Revenue shall certify the Annual Percentage
 6        to the Comptroller on the last business day of the fiscal
 7        year immediately preceding the fiscal year for  which  it
 8        is to be effective.
 9             (2)  Beginning  on  January  1, 1989 and thereafter,
10        the Department shall deposit a percentage of the  amounts
11        collected  pursuant  to  subsections (a) and (b)(6), (7),
12        and (8), (c) and (d) of Section 201 of this  Act  into  a
13        fund in the State treasury known as the Income Tax Refund
14        Fund.   The  Department shall deposit 18% of such amounts
15        during the period beginning January 1, 1989 and ending on
16        June 30, 1989.  Beginning with State fiscal year 1990 and
17        for each fiscal year thereafter, the percentage deposited
18        into the Income Tax Refund  Fund  during  a  fiscal  year
19        shall  be  the Annual Percentage.  For fiscal years 1999,
20        2000, and 2001, the Annual Percentage shall be 19%.   For
21        all  other  fiscal  years, the Annual Percentage shall be
22        calculated as a fraction, the numerator of which shall be
23        the  amount  of  refunds  approved  for  payment  by  the
24        Department during the preceding fiscal year as  a  result
25        of overpayment of tax liability under subsections (a) and
26        (b)(6),  (7), and (8), (c) and (d) of Section 201 of this
27        Act plus the amount of such  refunds  remaining  approved
28        but  unpaid  at the end of the preceding fiscal year, the
29        denominator of which shall be the amounts which  will  be
30        collected  pursuant  to  subsections (a) and (b)(6), (7),
31        and (8), (c) and (d) of Section 201 of  this  Act  during
32        the preceding fiscal year.  The Director of Revenue shall
33        certify  the  Annual Percentage to the Comptroller on the
34        last  business  day  of  the  fiscal   year   immediately
 
                            -7-               LRB9203211SMdvA
 1        preceding   the  fiscal  year  for  which  it  is  to  be
 2        effective.
 3             (3)  The Comptroller shall order transferred and the
 4        Treasurer shall  transfer  from  the  Tobacco  Settlement
 5        Recovery   Fund   to  the  Income  Tax  Refund  Fund  (i)
 6        $35,000,000  in  January,  2001,  (ii)   $35,000,000   in
 7        January, 2002, and (iii) $35,000,000 in January, 2003.

 8        (d)  Expenditures from Income Tax Refund Fund.
 9             (1)  Beginning  January 1, 1989, money in the Income
10        Tax Refund Fund shall be  expended  exclusively  for  the
11        purpose  of  paying refunds resulting from overpayment of
12        tax liability under Section 201 of this Act,  for  paying
13        rebates under Section 208.1 in the event that the amounts
14        in  the  Homeowners' Tax Relief Fund are insufficient for
15        that purpose, and for making transfers pursuant  to  this
16        subsection (d).
17             (2)  The  Director  shall  order  payment of refunds
18        resulting from overpayment of tax liability under Section
19        201 of this Act from the Income Tax Refund Fund  only  to
20        the extent that amounts collected pursuant to Section 201
21        of this Act and transfers pursuant to this subsection (d)
22        and  item  (3)  of subsection (c) have been deposited and
23        retained in the Fund.
24             (3)  As soon as  possible  after  the  end  of  each
25        fiscal year, the Director shall order transferred and the
26        State Treasurer and State Comptroller shall transfer from
27        the  Income  Tax Refund Fund to the Personal Property Tax
28        Replacement Fund an amount, certified by the Director  to
29        the  Comptroller,  equal  to  the  excess  of  the amount
30        collected pursuant to subsections (c) and (d) of  Section
31        201 of this Act deposited into the Income Tax Refund Fund
32        during  the  fiscal  year  over  the  amount  of  refunds
33        resulting   from   overpayment  of  tax  liability  under
34        subsections (c) and (d) of Section 201 of this  Act  paid
 
                            -8-               LRB9203211SMdvA
 1        from the Income Tax Refund Fund during the fiscal year.
 2             (4)  As  soon  as  possible  after  the  end of each
 3        fiscal year, the Director shall order transferred and the
 4        State Treasurer and State Comptroller shall transfer from
 5        the Personal Property Tax Replacement Fund to the  Income
 6        Tax  Refund  Fund an amount, certified by the Director to
 7        the Comptroller, equal to the excess  of  the  amount  of
 8        refunds resulting from overpayment of tax liability under
 9        subsections  (c)  and (d) of Section 201 of this Act paid
10        from the Income Tax Refund Fund during  the  fiscal  year
11        over the amount collected pursuant to subsections (c) and
12        (d)  of Section 201 of this Act deposited into the Income
13        Tax Refund Fund during the fiscal year.
14             (4.5)  As soon as possible after the end  of  fiscal
15        year  1999  and  of  each  fiscal  year  thereafter,  the
16        Director  shall order transferred and the State Treasurer
17        and State Comptroller shall transfer from the Income  Tax
18        Refund  Fund  to  the  General  Revenue  Fund any surplus
19        remaining in the Income Tax Refund Fund as of the end  of
20        such  fiscal year; excluding for fiscal years 2000, 2001,
21        and 2002 amounts attributable to transfers under item (3)
22        of subsection (c) less refunds resulting from the  earned
23        income tax credit.
24             (5)  This  Act  shall  constitute an irrevocable and
25        continuing appropriation from the Income Tax Refund  Fund
26        for  the  purpose of paying refunds upon the order of the
27        Director  in  accordance  with  the  provisions  of  this
28        Section.
29        (e)  Deposits into the Education Assistance Fund and  the
30    Income Tax Surcharge Local Government Distributive Fund.
31        On July 1, 1991, and thereafter, of the amounts collected
32    pursuant  to  subsections  (a) and (b) of Section 201 of this
33    Act, minus deposits into the  Income  Tax  Refund  Fund,  the
34    Department  shall  deposit 7.3% into the Education Assistance
 
                            -9-               LRB9203211SMdvA
 1    Fund in the State Treasury.   Beginning  July  1,  1991,  and
 2    continuing through January 31, 1993, of the amounts collected
 3    pursuant  to  subsections  (a)  and (b) of Section 201 of the
 4    Illinois Income Tax Act, minus deposits into the  Income  Tax
 5    Refund  Fund,  the  Department  shall  deposit  3.0% into the
 6    Income Tax Surcharge Local Government  Distributive  Fund  in
 7    the   State   Treasury.    Beginning  February  1,  1993  and
 8    continuing through June 30, 1993, of  the  amounts  collected
 9    pursuant  to  subsections  (a)  and (b) of Section 201 of the
10    Illinois Income Tax Act, minus deposits into the  Income  Tax
11    Refund  Fund,  the  Department  shall  deposit  4.4% into the
12    Income Tax Surcharge Local Government  Distributive  Fund  in
13    the  State  Treasury.  Beginning July 1, 1993, and continuing
14    through  June  30,  1994,  of  the  amounts  collected  under
15    subsections (a) and (b) of Section 201  of  this  Act,  minus
16    deposits  into  the  Income  Tax  Refund Fund, the Department
17    shall deposit 1.475% into  the  Income  Tax  Surcharge  Local
18    Government Distributive Fund in the State Treasury.
19    (Source:  P.A.  90-613,  eff.  7-9-98;  90-655, eff. 7-30-98;
20    91-212, eff.  7-20-99;  91-239,  eff.  1-1-00;  91-700,  eff.
21    5-11-00;  91-704,  eff.  7-1-00; 91-712, eff. 7-1-00; revised
22    6-28-00.)

23        Section 15.  The Use  Tax  Act  is  amended  by  changing
24    Section 3-5 as follows:

25        (35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
26        Sec.  3-5.   Exemptions.   Use  of the following tangible
27    personal property is exempt from the tax imposed by this Act:
28        (1)  Personal  property  purchased  from  a  corporation,
29    society,    association,    foundation,    institution,    or
30    organization, other than a limited liability company, that is
31    organized and operated as a not-for-profit service enterprise
32    for the benefit of persons 65 years of age or  older  if  the
 
                            -10-              LRB9203211SMdvA
 1    personal property was not purchased by the enterprise for the
 2    purpose of resale by the enterprise.
 3        (2)  Personal  property  purchased  by  a  not-for-profit
 4    Illinois  county  fair  association  for  use  in conducting,
 5    operating, or promoting the county fair.
 6        (3)  Personal property purchased by a not-for-profit arts
 7    or cultural organization that establishes, by proof  required
 8    by  the Department by rule, that it has received an exemption
 9    under Section 501(c)(3) of the Internal Revenue Code and that
10    is organized and operated for the presentation or support  of
11    arts or cultural programming, activities, or services.  These
12    organizations  include,  but  are  not  limited to, music and
13    dramatic arts organizations such as symphony  orchestras  and
14    theatrical  groups,  arts and cultural service organizations,
15    local arts councils, visual  arts  organizations,  and  media
16    arts organizations.
17        (4)  Personal  property purchased by a governmental body,
18    by  a  corporation,  society,  association,  foundation,   or
19    institution    organized   and   operated   exclusively   for
20    charitable, religious,  or  educational  purposes,  or  by  a
21    not-for-profit corporation, society, association, foundation,
22    institution, or organization that has no compensated officers
23    or employees and that is organized and operated primarily for
24    the recreation of persons 55 years of age or older. A limited
25    liability  company  may  qualify for the exemption under this
26    paragraph only if the limited liability company is  organized
27    and  operated  exclusively  for  educational purposes. On and
28    after July 1, 1987, however, no entity otherwise eligible for
29    this exemption shall make tax-free purchases unless it has an
30    active  exemption  identification  number   issued   by   the
31    Department.
32        (5)  A passenger car that is a replacement vehicle to the
33    extent  that  the purchase price of the car is subject to the
34    Replacement Vehicle Tax.
 
                            -11-              LRB9203211SMdvA
 1        (6)  Graphic  arts  machinery  and  equipment,  including
 2    repair  and  replacement  parts,  both  new  and  used,   and
 3    including  that  manufactured  on special order, certified by
 4    the  purchaser  to  be  used  primarily  for   graphic   arts
 5    production,  and  including machinery and equipment purchased
 6    for lease.
 7        (7)  Farm chemicals.
 8        (8)  Legal  tender,  currency,  medallions,  or  gold  or
 9    silver  coinage  issued  by  the  State  of   Illinois,   the
10    government of the United States of America, or the government
11    of any foreign country, and bullion.
12        (9)  Personal property purchased from a teacher-sponsored
13    student   organization   affiliated  with  an  elementary  or
14    secondary school located in Illinois.
15        (10)  A motor vehicle of  the  first  division,  a  motor
16    vehicle of the second division that is a self-contained motor
17    vehicle  designed  or permanently converted to provide living
18    quarters for  recreational,  camping,  or  travel  use,  with
19    direct  walk through to the living quarters from the driver's
20    seat, or a motor vehicle of the second division  that  is  of
21    the  van configuration designed for the transportation of not
22    less than 7 nor  more  than  16  passengers,  as  defined  in
23    Section  1-146 of the Illinois Vehicle Code, that is used for
24    automobile renting, as  defined  in  the  Automobile  Renting
25    Occupation and Use Tax Act.
26        (11)  Farm  machinery  and  equipment, both new and used,
27    including that manufactured on special  order,  certified  by
28    the purchaser to be used primarily for production agriculture
29    or   State   or   federal  agricultural  programs,  including
30    individual replacement parts for the machinery and equipment,
31    including machinery and equipment purchased  for  lease,  and
32    including implements of husbandry defined in Section 1-130 of
33    the  Illinois  Vehicle  Code, farm machinery and agricultural
34    chemical and fertilizer spreaders, and nurse wagons  required
 
                            -12-              LRB9203211SMdvA
 1    to  be registered under Section 3-809 of the Illinois Vehicle
 2    Code, but excluding  other  motor  vehicles  required  to  be
 3    registered  under  the  Illinois  Vehicle Code. Horticultural
 4    polyhouses or hoop houses used for propagating,  growing,  or
 5    overwintering  plants  shall be considered farm machinery and
 6    equipment under this item (11). Agricultural chemical  tender
 7    tanks  and dry boxes shall include units sold separately from
 8    a motor vehicle  required  to  be  licensed  and  units  sold
 9    mounted  on  a  motor  vehicle required to be licensed if the
10    selling price of the tender is separately stated.
11        Farm machinery  and  equipment  shall  include  precision
12    farming  equipment  that  is  installed  or  purchased  to be
13    installed on farm machinery and equipment including, but  not
14    limited   to,   tractors,   harvesters,  sprayers,  planters,
15    seeders, or spreaders. Precision farming equipment  includes,
16    but  is  not  limited  to,  soil  testing sensors, computers,
17    monitors, software, global positioning and  mapping  systems,
18    and other such equipment.
19        Farm  machinery  and  equipment  also includes computers,
20    sensors, software, and related equipment  used  primarily  in
21    the  computer-assisted  operation  of  production agriculture
22    facilities,  equipment,  and  activities  such  as,  but  not
23    limited to, the collection, monitoring,  and  correlation  of
24    animal  and  crop  data for the purpose of formulating animal
25    diets and agricultural chemicals.  This item (11)  is  exempt
26    from the provisions of Section 3-90.
27        (12)  Fuel  and  petroleum products sold to or used by an
28    air common carrier, certified by the carrier to be  used  for
29    consumption,  shipment,  or  storage  in  the  conduct of its
30    business as an air common carrier, for a flight destined  for
31    or  returning from a location or locations outside the United
32    States without regard  to  previous  or  subsequent  domestic
33    stopovers.
34        (13)  Proceeds  of  mandatory  service charges separately
 
                            -13-              LRB9203211SMdvA
 1    stated on customers' bills for the purchase  and  consumption
 2    of food and beverages purchased at retail from a retailer, to
 3    the  extent  that  the  proceeds of the service charge are in
 4    fact turned over as tips or as a substitute for tips  to  the
 5    employees  who  participate  directly  in preparing, serving,
 6    hosting or cleaning up the food  or  beverage  function  with
 7    respect to which the service charge is imposed.
 8        (14)  Oil  field  exploration,  drilling,  and production
 9    equipment, including (i) rigs and parts of rigs, rotary rigs,
10    cable tool rigs, and workover rigs,  (ii)  pipe  and  tubular
11    goods,  including  casing  and drill strings, (iii) pumps and
12    pump-jack units, (iv) storage tanks and flow lines,  (v)  any
13    individual   replacement  part  for  oil  field  exploration,
14    drilling, and production equipment, and  (vi)  machinery  and
15    equipment  purchased  for lease; but excluding motor vehicles
16    required to be registered under the Illinois Vehicle Code.
17        (15)  Photoprocessing machinery and equipment,  including
18    repair  and  replacement  parts, both new and used, including
19    that  manufactured  on  special  order,  certified   by   the
20    purchaser  to  be  used  primarily  for  photoprocessing, and
21    including photoprocessing machinery and  equipment  purchased
22    for lease.
23        (16)  Coal   exploration,   mining,  offhighway  hauling,
24    processing, maintenance, and reclamation equipment, including
25    replacement parts  and  equipment,  and  including  equipment
26    purchased for lease, but excluding motor vehicles required to
27    be registered under the Illinois Vehicle Code.
28        (17)  Distillation  machinery  and  equipment,  sold as a
29    unit  or  kit,  assembled  or  installed  by  the   retailer,
30    certified  by  the user to be used only for the production of
31    ethyl alcohol that will be used for consumption as motor fuel
32    or as a component of motor fuel for the personal use  of  the
33    user, and not subject to sale or resale.
34        (18)  Manufacturing    and   assembling   machinery   and
 
                            -14-              LRB9203211SMdvA
 1    equipment used primarily in the process of  manufacturing  or
 2    assembling tangible personal property for wholesale or retail
 3    sale or lease, whether that sale or lease is made directly by
 4    the  manufacturer  or  by  some  other  person,  whether  the
 5    materials  used  in the process are owned by the manufacturer
 6    or some other person, or whether that sale or lease  is  made
 7    apart  from or as an incident to the seller's engaging in the
 8    service occupation of producing machines, tools, dies,  jigs,
 9    patterns,  gauges,  or  other  similar items of no commercial
10    value on special order for a particular purchaser.
11        (19)  Personal  property  delivered  to  a  purchaser  or
12    purchaser's donee inside Illinois when the purchase order for
13    that personal property was  received  by  a  florist  located
14    outside  Illinois  who  has a florist located inside Illinois
15    deliver the personal property.
16        (20)  Semen used for artificial insemination of livestock
17    for direct agricultural production.
18        (21)  Horses, or interests in horses, registered with and
19    meeting the requirements of any of  the  Arabian  Horse  Club
20    Registry  of  America, Appaloosa Horse Club, American Quarter
21    Horse Association, United  States  Trotting  Association,  or
22    Jockey Club, as appropriate, used for purposes of breeding or
23    racing for prizes.
24        (22)  Computers and communications equipment utilized for
25    any  hospital  purpose  and  equipment used in the diagnosis,
26    analysis, or treatment of hospital patients  purchased  by  a
27    lessor who leases the equipment, under a lease of one year or
28    longer  executed  or  in  effect at the time the lessor would
29    otherwise be subject to the tax imposed by  this  Act,  to  a
30    hospital    that  has  been  issued  an  active tax exemption
31    identification number by the Department under Section  1g  of
32    the  Retailers'  Occupation  Tax  Act.   If  the equipment is
33    leased in a manner that does not qualify for  this  exemption
34    or  is  used in any other non-exempt manner, the lessor shall
 
                            -15-              LRB9203211SMdvA
 1    be liable for the tax imposed under this Act or  the  Service
 2    Use  Tax  Act,  as  the case may be, based on the fair market
 3    value of the property at  the  time  the  non-qualifying  use
 4    occurs.   No  lessor  shall  collect or attempt to collect an
 5    amount (however designated) that purports to  reimburse  that
 6    lessor for the tax imposed by this Act or the Service Use Tax
 7    Act,  as the case may be, if the tax has not been paid by the
 8    lessor.  If a lessor improperly collects any such amount from
 9    the lessee, the lessee shall have a legal right  to  claim  a
10    refund  of  that  amount  from the lessor.  If, however, that
11    amount is not refunded to the  lessee  for  any  reason,  the
12    lessor is liable to pay that amount to the Department.
13        (23)  Personal  property purchased by a lessor who leases
14    the property, under a lease of  one year or  longer  executed
15    or  in  effect  at  the  time  the  lessor would otherwise be
16    subject to the tax imposed by this  Act,  to  a  governmental
17    body  that  has  been  issued  an  active sales tax exemption
18    identification number by the Department under Section  1g  of
19    the  Retailers' Occupation Tax Act. If the property is leased
20    in a manner that does not qualify for this exemption or  used
21    in  any  other  non-exempt manner, the lessor shall be liable
22    for the tax imposed under this Act or  the  Service  Use  Tax
23    Act,  as  the  case may be, based on the fair market value of
24    the property at the time the non-qualifying use  occurs.   No
25    lessor shall collect or attempt to collect an amount (however
26    designated)  that  purports  to reimburse that lessor for the
27    tax imposed by this Act or the Service Use Tax  Act,  as  the
28    case  may be, if the tax has not been paid by the lessor.  If
29    a lessor improperly collects any such amount from the lessee,
30    the lessee shall have a legal right to claim a refund of that
31    amount from the lessor.  If,  however,  that  amount  is  not
32    refunded  to  the lessee for any reason, the lessor is liable
33    to pay that amount to the Department.
34        (24)  Beginning with taxable years  ending  on  or  after
 
                            -16-              LRB9203211SMdvA
 1    December  31, 1995 and ending with taxable years ending on or
 2    before December 31, 2004, personal property that  is  donated
 3    for  disaster  relief  to  be  used  in  a State or federally
 4    declared disaster area in Illinois or bordering Illinois by a
 5    manufacturer or retailer that is registered in this State  to
 6    a   corporation,   society,   association,   foundation,   or
 7    institution  that  has  been  issued  a  sales  tax exemption
 8    identification number by the Department that assists  victims
 9    of the disaster who reside within the declared disaster area.
10        (25)  Beginning  with  taxable  years  ending on or after
11    December 31, 1995 and ending with taxable years ending on  or
12    before  December  31, 2004, personal property that is used in
13    the performance of  infrastructure  repairs  in  this  State,
14    including  but  not  limited  to municipal roads and streets,
15    access roads, bridges,  sidewalks,  waste  disposal  systems,
16    water  and  sewer  line  extensions,  water  distribution and
17    purification facilities, storm water drainage  and  retention
18    facilities, and sewage treatment facilities, resulting from a
19    State or federally declared disaster in Illinois or bordering
20    Illinois  when  such  repairs  are  initiated  on  facilities
21    located  in  the declared disaster area within 6 months after
22    the disaster.
23        (26)  Beginning  July  1,  1999,  game  or   game   birds
24    purchased  at  a "game breeding and hunting preserve area" or
25    an "exotic game hunting area" as those terms are used in  the
26    Wildlife  Code  or  at  a  hunting enclosure approved through
27    rules adopted by the Department of Natural  Resources.   This
28    paragraph is exempt from the provisions of Section 3-90.
29        (27)  A motor vehicle, as that term is defined in Section
30    1-146  of  the  Illinois  Vehicle  Code, that is donated to a
31    corporation, limited liability company, society, association,
32    foundation,  or  institution  that  is  determined   by   the
33    Department  to  be  organized  and  operated  exclusively for
34    educational purposes.  For purposes  of  this  exemption,  "a
 
                            -17-              LRB9203211SMdvA
 1    corporation, limited liability company, society, association,
 2    foundation, or institution organized and operated exclusively
 3    for  educational  purposes"  means  all  tax-supported public
 4    schools, private schools that offer systematic instruction in
 5    useful branches of  learning  by  methods  common  to  public
 6    schools  and  that  compare  favorably  in  their  scope  and
 7    intensity with the course of study presented in tax-supported
 8    schools,  and  vocational  or technical schools or institutes
 9    organized and operated exclusively to  provide  a  course  of
10    study  of  not  less  than  6  weeks duration and designed to
11    prepare individuals to follow a trade or to pursue a  manual,
12    technical,  mechanical,  industrial,  business, or commercial
13    occupation.
14        (28)  Beginning  January  1,  2000,   personal  property,
15    including food, purchased through fundraising events for  the
16    benefit  of  a  public  or  private  elementary  or secondary
17    school, a group of those  schools,  or  one  or  more  school
18    districts if the events are sponsored by an entity recognized
19    by  the school district that consists primarily of volunteers
20    and includes parents and teachers  of  the  school  children.
21    This  paragraph  does not apply to fundraising events (i) for
22    the benefit of private home instruction or (ii) for which the
23    fundraising entity purchases the personal  property  sold  at
24    the  events  from  another individual or entity that sold the
25    property for the purpose of resale by the fundraising  entity
26    and  that  profits  from  the sale to the fundraising entity.
27    This paragraph is exempt from the provisions of Section 3-90.
28        (29)  Beginning January 1, 2000, new  or  used  automatic
29    vending   machines  that  prepare  and  serve  hot  food  and
30    beverages, including  coffee,  soup,  and  other  items,  and
31    replacement  parts  for  these  machines.   This paragraph is
32    exempt from the provisions of Section 3-90.
33        (30)  Food for human consumption that is to  be  consumed
34    off  the  premises  where  it  is  sold (other than alcoholic
 
                            -18-              LRB9203211SMdvA
 1    beverages, soft drinks, and food that has been  prepared  for
 2    immediate  consumption)  and prescription and nonprescription
 3    medicines, drugs,  medical  appliances,  and  insulin,  urine
 4    testing  materials,  syringes, and needles used by diabetics,
 5    for human use, when purchased for use by a  person  receiving
 6    medical assistance under Article 5 of the Illinois Public Aid
 7    Code  who  resides  in a licensed long-term care facility, as
 8    defined in the Nursing Home Care Act.
 9        (31)  Beginning in 2001, propane  and  home  heating  oil
10    sold  to  residential  customers  on  or after December 1 and
11    continuing through March 31 of the next year.  This paragraph
12    is exempt from the provisions of Section 3-90.
13        (32)  Beginning in 2002, for bills  issued  on  or  after
14    January  1  and  through  April  30  each  year,  natural gas
15    distributed, supplied,  furnished,  or  sold  to  residential
16    customers.  This  paragraph  is exempt from the provisions of
17    Section 3-90.
18    (Source: P.A. 90-14,  eff.  7-1-97;  90-552,  eff.  12-12-97;
19    90-605,  eff.  6-30-98;  91-51,  eff.  6-30-99;  91-200, eff.
20    7-20-99; 91-439, eff. 8-6-99; 91-637, eff.  8-20-99;  91-644,
21    eff. 8-20-99; 91-901, eff. 1-1-01.)

22        Section  20.   The  Service  Use  Tax  Act  is amended by
23    changing Section 3-5 as follows:

24        (35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
25        Sec. 3-5.  Exemptions.  Use  of  the  following  tangible
26    personal property is exempt from the tax imposed by this Act:
27        (1)  Personal  property  purchased  from  a  corporation,
28    society,    association,    foundation,    institution,    or
29    organization, other than a limited liability company, that is
30    organized and operated as a not-for-profit service enterprise
31    for  the  benefit  of persons 65 years of age or older if the
32    personal property was not purchased by the enterprise for the
 
                            -19-              LRB9203211SMdvA
 1    purpose of resale by the enterprise.
 2        (2)  Personal property purchased by a non-profit Illinois
 3    county fair association for use in conducting, operating,  or
 4    promoting the county fair.
 5        (3)  Personal property purchased by a not-for-profit arts
 6    or  cultural organization that establishes, by proof required
 7    by the Department by rule, that it has received an  exemption
 8    under Section 501(c)(3) of the Internal Revenue Code and that
 9    is  organized and operated for the presentation or support of
10    arts or cultural programming, activities, or services.  These
11    organizations include, but are  not  limited  to,  music  and
12    dramatic  arts  organizations such as symphony orchestras and
13    theatrical groups, arts and cultural  service  organizations,
14    local  arts  councils,  visual  arts organizations, and media
15    arts organizations.
16        (4)  Legal  tender,  currency,  medallions,  or  gold  or
17    silver  coinage  issued  by  the  State  of   Illinois,   the
18    government of the United States of America, or the government
19    of any foreign country, and bullion.
20        (5)  Graphic  arts  machinery  and  equipment,  including
21    repair   and  replacement  parts,  both  new  and  used,  and
22    including that manufactured on special order or purchased for
23    lease, certified by the purchaser to be  used  primarily  for
24    graphic arts production.
25        (6)  Personal property purchased from a teacher-sponsored
26    student   organization   affiliated  with  an  elementary  or
27    secondary school located in Illinois.
28        (7)  Farm machinery and equipment,  both  new  and  used,
29    including  that  manufactured  on special order, certified by
30    the purchaser to be used primarily for production agriculture
31    or  State  or  federal   agricultural   programs,   including
32    individual replacement parts for the machinery and equipment,
33    including  machinery  and  equipment purchased for lease, and
34    including implements of husbandry defined in Section 1-130 of
 
                            -20-              LRB9203211SMdvA
 1    the Illinois Vehicle Code, farm  machinery  and  agricultural
 2    chemical  and fertilizer spreaders, and nurse wagons required
 3    to be registered under Section 3-809 of the Illinois  Vehicle
 4    Code,  but  excluding  other  motor  vehicles  required to be
 5    registered under the  Illinois  Vehicle  Code.  Horticultural
 6    polyhouses  or  hoop houses used for propagating, growing, or
 7    overwintering plants shall be considered farm  machinery  and
 8    equipment  under  this item (7). Agricultural chemical tender
 9    tanks and dry boxes shall include units sold separately  from
10    a  motor  vehicle  required  to  be  licensed  and units sold
11    mounted on a motor vehicle required to  be  licensed  if  the
12    selling price of the tender is separately stated.
13        Farm  machinery  and  equipment  shall  include precision
14    farming equipment  that  is  installed  or  purchased  to  be
15    installed  on farm machinery and equipment including, but not
16    limited  to,  tractors,   harvesters,   sprayers,   planters,
17    seeders,  or spreaders. Precision farming equipment includes,
18    but is not  limited  to,  soil  testing  sensors,  computers,
19    monitors,  software,  global positioning and mapping systems,
20    and other such equipment.
21        Farm machinery and  equipment  also  includes  computers,
22    sensors,  software,  and  related equipment used primarily in
23    the computer-assisted  operation  of  production  agriculture
24    facilities,  equipment,  and  activities  such  as,  but  not
25    limited  to,  the  collection, monitoring, and correlation of
26    animal and crop data for the purpose  of  formulating  animal
27    diets  and  agricultural  chemicals.  This item (7) is exempt
28    from the provisions of Section 3-75.
29        (8)  Fuel and petroleum products sold to or  used  by  an
30    air  common  carrier, certified by the carrier to be used for
31    consumption, shipment, or  storage  in  the  conduct  of  its
32    business  as an air common carrier, for a flight destined for
33    or returning from a location or locations outside the  United
34    States  without  regard  to  previous  or subsequent domestic
 
                            -21-              LRB9203211SMdvA
 1    stopovers.
 2        (9)  Proceeds of  mandatory  service  charges  separately
 3    stated  on  customers' bills for the purchase and consumption
 4    of food and beverages acquired as an incident to the purchase
 5    of a service from  a  serviceman,  to  the  extent  that  the
 6    proceeds  of  the  service  charge are in fact turned over as
 7    tips or as  a  substitute  for  tips  to  the  employees  who
 8    participate   directly  in  preparing,  serving,  hosting  or
 9    cleaning up the food or beverage  function  with  respect  to
10    which the service charge is imposed.
11        (10)  Oil  field  exploration,  drilling,  and production
12    equipment, including (i) rigs and parts of rigs, rotary rigs,
13    cable tool rigs, and workover rigs,  (ii)  pipe  and  tubular
14    goods,  including  casing  and drill strings, (iii) pumps and
15    pump-jack units, (iv) storage tanks and flow lines,  (v)  any
16    individual   replacement  part  for  oil  field  exploration,
17    drilling, and production equipment, and  (vi)  machinery  and
18    equipment  purchased  for lease; but excluding motor vehicles
19    required to be registered under the Illinois Vehicle Code.
20        (11)  Proceeds from the sale of photoprocessing machinery
21    and equipment, including repair and replacement  parts,  both
22    new  and  used, including that manufactured on special order,
23    certified  by  the  purchaser  to  be  used   primarily   for
24    photoprocessing,  and including photoprocessing machinery and
25    equipment purchased for lease.
26        (12)  Coal  exploration,  mining,   offhighway   hauling,
27    processing, maintenance, and reclamation equipment, including
28    replacement  parts  and  equipment,  and  including equipment
29    purchased for lease, but excluding motor vehicles required to
30    be registered under the Illinois Vehicle Code.
31        (13)  Semen used for artificial insemination of livestock
32    for direct agricultural production.
33        (14)  Horses, or interests in horses, registered with and
34    meeting the requirements of any of  the  Arabian  Horse  Club
 
                            -22-              LRB9203211SMdvA
 1    Registry  of  America, Appaloosa Horse Club, American Quarter
 2    Horse Association, United  States  Trotting  Association,  or
 3    Jockey Club, as appropriate, used for purposes of breeding or
 4    racing for prizes.
 5        (15)  Computers and communications equipment utilized for
 6    any  hospital  purpose  and  equipment used in the diagnosis,
 7    analysis, or treatment of hospital patients  purchased  by  a
 8    lessor who leases the equipment, under a lease of one year or
 9    longer  executed  or  in  effect at the time the lessor would
10    otherwise be subject to the tax imposed by  this  Act,  to  a
11    hospital  that  has  been  issued  an  active  tax  exemption
12    identification  number  by the Department under Section 1g of
13    the Retailers' Occupation Tax Act. If the equipment is leased
14    in a manner that does not qualify for this  exemption  or  is
15    used  in  any  other  non-exempt  manner, the lessor shall be
16    liable for the tax imposed under this Act or the Use Tax Act,
17    as the case may be, based on the fair  market  value  of  the
18    property  at  the  time  the  non-qualifying  use occurs.  No
19    lessor shall collect or attempt to collect an amount (however
20    designated) that purports to reimburse that  lessor  for  the
21    tax  imposed  by this Act or the Use Tax Act, as the case may
22    be, if the tax has not been paid by the lessor.  If a  lessor
23    improperly  collects  any  such  amount  from the lessee, the
24    lessee shall have a legal right to claim  a  refund  of  that
25    amount  from  the  lessor.   If,  however, that amount is not
26    refunded to the lessee for any reason, the lessor  is  liable
27    to pay that amount to the Department.
28        (16)  Personal  property purchased by a lessor who leases
29    the property, under a lease of one year or longer executed or
30    in effect at the time the lessor would otherwise  be  subject
31    to  the  tax imposed by this Act, to a governmental body that
32    has been issued an active tax exemption identification number
33    by  the  Department  under  Section  1g  of  the   Retailers'
34    Occupation  Tax  Act.   If the property is leased in a manner
 
                            -23-              LRB9203211SMdvA
 1    that does not qualify for this exemption or is  used  in  any
 2    other  non-exempt  manner, the lessor shall be liable for the
 3    tax imposed under this Act or the Use Tax Act,  as  the  case
 4    may be, based on the fair market value of the property at the
 5    time  the non-qualifying use occurs.  No lessor shall collect
 6    or attempt to collect an  amount  (however  designated)  that
 7    purports to reimburse that lessor for the tax imposed by this
 8    Act  or  the  Use Tax Act, as the case may be, if the tax has
 9    not been paid by the lessor.  If a lessor improperly collects
10    any such amount from the lessee,  the  lessee  shall  have  a
11    legal right to claim a refund of that amount from the lessor.
12    If,  however,  that  amount is not refunded to the lessee for
13    any reason, the lessor is liable to pay that  amount  to  the
14    Department.
15        (17)  Beginning  with  taxable  years  ending on or after
16    December 31, 1995 and ending with taxable years ending on  or
17    before  December  31, 2004, personal property that is donated
18    for disaster relief to  be  used  in  a  State  or  federally
19    declared disaster area in Illinois or bordering Illinois by a
20    manufacturer  or retailer that is registered in this State to
21    a   corporation,   society,   association,   foundation,   or
22    institution that  has  been  issued  a  sales  tax  exemption
23    identification  number by the Department that assists victims
24    of the disaster who reside within the declared disaster area.
25        (18)  Beginning with taxable years  ending  on  or  after
26    December  31, 1995 and ending with taxable years ending on or
27    before December 31, 2004, personal property that is  used  in
28    the  performance  of  infrastructure  repairs  in this State,
29    including but not limited to  municipal  roads  and  streets,
30    access  roads,  bridges,  sidewalks,  waste disposal systems,
31    water and  sewer  line  extensions,  water  distribution  and
32    purification  facilities,  storm water drainage and retention
33    facilities, and sewage treatment facilities, resulting from a
34    State or federally declared disaster in Illinois or bordering
 
                            -24-              LRB9203211SMdvA
 1    Illinois  when  such  repairs  are  initiated  on  facilities
 2    located in the declared disaster area within 6  months  after
 3    the disaster.
 4        (19)  Beginning   July   1,  1999,  game  or  game  birds
 5    purchased at a "game breeding and hunting preserve  area"  or
 6    an  "exotic game hunting area" as those terms are used in the
 7    Wildlife Code or at  a  hunting  enclosure  approved  through
 8    rules  adopted  by the Department of Natural Resources.  This
 9    paragraph is exempt from the provisions of Section 3-75.
10        (20) (19)  A motor vehicle, as that term  is  defined  in
11    Section  1-146  of the Illinois Vehicle Code, that is donated
12    to  a  corporation,  limited  liability   company,   society,
13    association, foundation, or institution that is determined by
14    the  Department  to be organized and operated exclusively for
15    educational purposes.  For purposes  of  this  exemption,  "a
16    corporation, limited liability company, society, association,
17    foundation, or institution organized and operated exclusively
18    for  educational  purposes"  means  all  tax-supported public
19    schools, private schools that offer systematic instruction in
20    useful branches of  learning  by  methods  common  to  public
21    schools  and  that  compare  favorably  in  their  scope  and
22    intensity with the course of study presented in tax-supported
23    schools,  and  vocational  or technical schools or institutes
24    organized and operated exclusively to  provide  a  course  of
25    study  of  not  less  than  6  weeks duration and designed to
26    prepare individuals to follow a trade or to pursue a  manual,
27    technical,  mechanical,  industrial,  business, or commercial
28    occupation.
29        (21) (20)  Beginning January 1, 2000,  personal property,
30    including food, purchased through fundraising events for  the
31    benefit  of  a  public  or  private  elementary  or secondary
32    school, a group of those  schools,  or  one  or  more  school
33    districts if the events are sponsored by an entity recognized
34    by  the school district that consists primarily of volunteers
 
                            -25-              LRB9203211SMdvA
 1    and includes parents and teachers  of  the  school  children.
 2    This  paragraph  does not apply to fundraising events (i) for
 3    the benefit of private home instruction or (ii) for which the
 4    fundraising entity purchases the personal  property  sold  at
 5    the  events  from  another individual or entity that sold the
 6    property for the purpose of resale by the fundraising  entity
 7    and  that  profits  from  the sale to the fundraising entity.
 8    This paragraph is exempt from the provisions of Section 3-75.
 9        (22)  (19)  Beginning  January  1,  2000,  new  or   used
10    automatic  vending  machines  that prepare and serve hot food
11    and beverages, including coffee, soup, and other  items,  and
12    replacement  parts  for  these  machines.   This paragraph is
13    exempt from the provisions of Section 3-75.
14        (23)  Beginning in 2001, propane  and  home  heating  oil
15    sold  to  residential  customers  on  or after December 1 and
16    continuing through March 31 of the next year.  This paragraph
17    is exempt from the provisions of Section 3-75.
18        (24)  Beginning in 2002, for bills  issued  on  or  after
19    January  1  and  through  April  30  each  year,  natural gas
20    distributed, supplied,  furnished,  or  sold  to  residential
21    customers.  This  paragraph  is exempt from the provisions of
22    Section 3-75.
23    (Source: P.A. 90-14,  eff.  7-1-97;  90-552,  eff.  12-12-97;
24    90-605,  eff.  6-30-98;  91-51,  eff.  6-30-99;  91-200, eff.
25    7-20-99; 91-439, eff. 8-6-99; 91-637, eff.  8-20-99;  91-644,
26    eff. 8-20-99; revised 9-29-99.)

27        Section 25.  The Service Occupation Tax Act is amended by
28    changing Section 3-5 as follows:

29        (35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
30        Sec.  3-5.   Exemptions.  The following tangible personal
31    property is exempt from the tax imposed by this Act:
32        (1)  Personal property sold by  a  corporation,  society,
 
                            -26-              LRB9203211SMdvA
 1    association,  foundation, institution, or organization, other
 2    than a limited  liability  company,  that  is  organized  and
 3    operated  as  a  not-for-profit  service  enterprise  for the
 4    benefit of persons 65 years of age or older if  the  personal
 5    property  was not purchased by the enterprise for the purpose
 6    of resale by the enterprise.
 7        (2)  Personal  property  purchased  by  a  not-for-profit
 8    Illinois county  fair  association  for  use  in  conducting,
 9    operating, or promoting the county fair.
10        (3)  Personal  property  purchased  by any not-for-profit
11    arts or cultural  organization  that  establishes,  by  proof
12    required  by  the Department by rule, that it has received an
13    exemption  under Section 501(c)(3) of  the  Internal  Revenue
14    Code  and that is organized and operated for the presentation
15    or support of arts or cultural  programming,  activities,  or
16    services.   These  organizations include, but are not limited
17    to, music and dramatic arts organizations  such  as  symphony
18    orchestras  and  theatrical groups, arts and cultural service
19    organizations,   local    arts    councils,    visual    arts
20    organizations, and media arts organizations.
21        (4)  Legal  tender,  currency,  medallions,  or  gold  or
22    silver   coinage   issued  by  the  State  of  Illinois,  the
23    government of the United States of America, or the government
24    of any foreign country, and bullion.
25        (5)  Graphic  arts  machinery  and  equipment,  including
26    repair  and  replacement  parts,  both  new  and  used,   and
27    including that manufactured on special order or purchased for
28    lease,  certified  by  the purchaser to be used primarily for
29    graphic arts production.
30        (6)  Personal  property  sold  by   a   teacher-sponsored
31    student   organization   affiliated  with  an  elementary  or
32    secondary school located in Illinois.
33        (7)  Farm machinery and equipment,  both  new  and  used,
34    including  that  manufactured  on special order, certified by
 
                            -27-              LRB9203211SMdvA
 1    the purchaser to be used primarily for production agriculture
 2    or  State  or  federal   agricultural   programs,   including
 3    individual replacement parts for the machinery and equipment,
 4    including  machinery  and  equipment purchased for lease, and
 5    including implements of husbandry defined in Section 1-130 of
 6    the Illinois Vehicle Code, farm  machinery  and  agricultural
 7    chemical  and fertilizer spreaders, and nurse wagons required
 8    to be registered under Section 3-809 of the Illinois  Vehicle
 9    Code,  but  excluding  other  motor  vehicles  required to be
10    registered under the  Illinois  Vehicle  Code.  Horticultural
11    polyhouses  or  hoop houses used for propagating, growing, or
12    overwintering plants shall be considered farm  machinery  and
13    equipment  under  this item (7). Agricultural chemical tender
14    tanks and dry boxes shall include units sold separately  from
15    a  motor  vehicle  required  to  be  licensed  and units sold
16    mounted on a motor vehicle required to  be  licensed  if  the
17    selling price of the tender is separately stated.
18        Farm  machinery  and  equipment  shall  include precision
19    farming equipment  that  is  installed  or  purchased  to  be
20    installed  on farm machinery and equipment including, but not
21    limited  to,  tractors,   harvesters,   sprayers,   planters,
22    seeders,  or spreaders. Precision farming equipment includes,
23    but is not  limited  to,  soil  testing  sensors,  computers,
24    monitors,  software,  global positioning and mapping systems,
25    and other such equipment.
26        Farm machinery and  equipment  also  includes  computers,
27    sensors,  software,  and  related equipment used primarily in
28    the computer-assisted  operation  of  production  agriculture
29    facilities,  equipment,  and  activities  such  as,  but  not
30    limited  to,  the  collection, monitoring, and correlation of
31    animal and crop data for the purpose  of  formulating  animal
32    diets  and  agricultural  chemicals.  This item (7) is exempt
33    from the provisions of Section 3-55.
34        (8)  Fuel and petroleum products sold to or  used  by  an
 
                            -28-              LRB9203211SMdvA
 1    air  common  carrier, certified by the carrier to be used for
 2    consumption, shipment, or  storage  in  the  conduct  of  its
 3    business  as an air common carrier, for a flight destined for
 4    or returning from a location or locations outside the  United
 5    States  without  regard  to  previous  or subsequent domestic
 6    stopovers.
 7        (9)  Proceeds of  mandatory  service  charges  separately
 8    stated  on  customers' bills for the purchase and consumption
 9    of food and beverages, to the extent that the proceeds of the
10    service charge are in fact  turned  over  as  tips  or  as  a
11    substitute for tips to the employees who participate directly
12    in  preparing,  serving,  hosting  or cleaning up the food or
13    beverage function with respect to which the service charge is
14    imposed.
15        (10)  Oil field  exploration,  drilling,  and  production
16    equipment, including (i) rigs and parts of rigs, rotary rigs,
17    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
18    goods, including casing and drill strings,  (iii)  pumps  and
19    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
20    individual  replacement  part  for  oil  field   exploration,
21    drilling,  and  production  equipment, and (vi) machinery and
22    equipment purchased for lease; but excluding  motor  vehicles
23    required to be registered under the Illinois Vehicle Code.
24        (11)  Photoprocessing  machinery and equipment, including
25    repair and replacement parts, both new  and  used,  including
26    that   manufactured   on  special  order,  certified  by  the
27    purchaser to  be  used  primarily  for  photoprocessing,  and
28    including  photoprocessing  machinery and equipment purchased
29    for lease.
30        (12)  Coal  exploration,  mining,   offhighway   hauling,
31    processing, maintenance, and reclamation equipment, including
32    replacement  parts  and  equipment,  and  including equipment
33    purchased for lease, but excluding motor vehicles required to
34    be registered under the Illinois Vehicle Code.
 
                            -29-              LRB9203211SMdvA
 1        (13)  Food for human consumption that is to  be  consumed
 2    off  the  premises  where  it  is  sold (other than alcoholic
 3    beverages, soft drinks and food that has  been  prepared  for
 4    immediate  consumption) and prescription and non-prescription
 5    medicines, drugs,  medical  appliances,  and  insulin,  urine
 6    testing  materials,  syringes, and needles used by diabetics,
 7    for human use, when purchased for use by a  person  receiving
 8    medical assistance under Article 5 of the Illinois Public Aid
 9    Code  who  resides  in a licensed long-term care facility, as
10    defined in the Nursing Home Care Act.
11        (14)  Semen used for artificial insemination of livestock
12    for direct agricultural production.
13        (15)  Horses, or interests in horses, registered with and
14    meeting the requirements of any of  the  Arabian  Horse  Club
15    Registry  of  America, Appaloosa Horse Club, American Quarter
16    Horse Association, United  States  Trotting  Association,  or
17    Jockey Club, as appropriate, used for purposes of breeding or
18    racing for prizes.
19        (16)  Computers and communications equipment utilized for
20    any  hospital  purpose  and  equipment used in the diagnosis,
21    analysis, or treatment of hospital patients sold to a  lessor
22    who leases the equipment, under a lease of one year or longer
23    executed  or  in  effect  at  the  time of the purchase, to a
24    hospital  that  has  been  issued  an  active  tax  exemption
25    identification number by the Department under Section  1g  of
26    the Retailers' Occupation Tax Act.
27        (17)  Personal  property  sold to a lessor who leases the
28    property, under a lease of one year or longer executed or  in
29    effect  at  the  time of the purchase, to a governmental body
30    that has been issued an active tax  exemption  identification
31    number  by  the Department under Section 1g of the Retailers'
32    Occupation Tax Act.
33        (18)  Beginning with taxable years  ending  on  or  after
34    December  31, 1995 and ending with taxable years ending on or
 
                            -30-              LRB9203211SMdvA
 1    before December 31, 2004, personal property that  is  donated
 2    for  disaster  relief  to  be  used  in  a State or federally
 3    declared disaster area in Illinois or bordering Illinois by a
 4    manufacturer or retailer that is registered in this State  to
 5    a   corporation,   society,   association,   foundation,   or
 6    institution  that  has  been  issued  a  sales  tax exemption
 7    identification number by the Department that assists  victims
 8    of the disaster who reside within the declared disaster area.
 9        (19)  Beginning  with  taxable  years  ending on or after
10    December 31, 1995 and ending with taxable years ending on  or
11    before  December  31, 2004, personal property that is used in
12    the performance of  infrastructure  repairs  in  this  State,
13    including  but  not  limited  to municipal roads and streets,
14    access roads, bridges,  sidewalks,  waste  disposal  systems,
15    water  and  sewer  line  extensions,  water  distribution and
16    purification facilities, storm water drainage  and  retention
17    facilities, and sewage treatment facilities, resulting from a
18    State or federally declared disaster in Illinois or bordering
19    Illinois  when  such  repairs  are  initiated  on  facilities
20    located  in  the declared disaster area within 6 months after
21    the disaster.
22        (20)  Beginning July 1, 1999, game or game birds sold  at
23    a  "game  breeding  and  hunting preserve area" or an "exotic
24    game hunting area" as those terms are used  in  the  Wildlife
25    Code or at a hunting enclosure approved through rules adopted
26    by  the  Department  of Natural Resources.  This paragraph is
27    exempt from the provisions of Section 3-55.
28        (21) (20)  A motor vehicle, as that term  is  defined  in
29    Section  1-146  of the Illinois Vehicle Code, that is donated
30    to  a  corporation,  limited  liability   company,   society,
31    association, foundation, or institution that is determined by
32    the  Department  to be organized and operated exclusively for
33    educational purposes.  For purposes  of  this  exemption,  "a
34    corporation, limited liability company, society, association,
 
                            -31-              LRB9203211SMdvA
 1    foundation, or institution organized and operated exclusively
 2    for  educational  purposes"  means  all  tax-supported public
 3    schools, private schools that offer systematic instruction in
 4    useful branches of  learning  by  methods  common  to  public
 5    schools  and  that  compare  favorably  in  their  scope  and
 6    intensity with the course of study presented in tax-supported
 7    schools,  and  vocational  or technical schools or institutes
 8    organized and operated exclusively to  provide  a  course  of
 9    study  of  not  less  than  6  weeks duration and designed to
10    prepare individuals to follow a trade or to pursue a  manual,
11    technical,  mechanical,  industrial,  business, or commercial
12    occupation.
13        (22) (21)  Beginning January 1, 2000,  personal property,
14    including food, purchased through fundraising events for  the
15    benefit  of  a  public  or  private  elementary  or secondary
16    school, a group of those  schools,  or  one  or  more  school
17    districts if the events are sponsored by an entity recognized
18    by  the school district that consists primarily of volunteers
19    and includes parents and teachers  of  the  school  children.
20    This  paragraph  does not apply to fundraising events (i) for
21    the benefit of private home instruction or (ii) for which the
22    fundraising entity purchases the personal  property  sold  at
23    the  events  from  another individual or entity that sold the
24    property for the purpose of resale by the fundraising  entity
25    and  that  profits  from  the sale to the fundraising entity.
26    This paragraph is exempt from the provisions of Section 3-55.
27        (23)  (20)  Beginning  January  1,  2000,  new  or   used
28    automatic  vending  machines  that prepare and serve hot food
29    and beverages, including coffee, soup, and other  items,  and
30    replacement  parts  for  these  machines.   This paragraph is
31    exempt from the provisions of Section 3-55.
32        (24)  Beginning in 2001, propane  and  home  heating  oil
33    sold  to  residential  customers  on  or after December 1 and
34    continuing through March 31 of the next year.  This paragraph
 
                            -32-              LRB9203211SMdvA
 1    is exempt from the provisions of Section 3-55.
 2        (25)  Beginning in 2002, for bills  issued  on  or  after
 3    January  1  and  through  April  30  each  year,  natural gas
 4    distributed, supplied,  furnished,  or  sold  to  residential
 5    customers.  This  paragraph  is exempt from the provisions of
 6    Section 3-55.
 7    (Source: P.A. 90-14,  eff.  7-1-97;  90-552,  eff.  12-12-97;
 8    90-605,  eff.  6-30-98;  91-51,  eff.  6-30-99;  91-200, eff.
 9    7-20-99; 91-439, eff. 8-6-99; 91-533, eff.  8-13-99;  91-637,
10    eff. 8-20-99; 91-644, eff. 8-20-99; revised 9-29-99.)

11        Section 30.  The Retailers' Occupation Tax Act is amended
12    by changing Section 2-5 and by adding Section 2-6 as follows:

13        (35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
14        Sec. 2-5.  Exemptions.  Gross receipts from proceeds from
15    the  sale  of  the  following  tangible personal property are
16    exempt from the tax imposed by this Act:
17        (1)  Farm chemicals.
18        (2)  Farm machinery and equipment,  both  new  and  used,
19    including  that  manufactured  on special order, certified by
20    the purchaser to be used primarily for production agriculture
21    or  State  or  federal   agricultural   programs,   including
22    individual replacement parts for the machinery and equipment,
23    including  machinery  and  equipment purchased for lease, and
24    including implements of husbandry defined in Section 1-130 of
25    the Illinois Vehicle Code, farm  machinery  and  agricultural
26    chemical  and fertilizer spreaders, and nurse wagons required
27    to be registered under Section 3-809 of the Illinois  Vehicle
28    Code,  but  excluding  other  motor  vehicles  required to be
29    registered under the  Illinois  Vehicle  Code.  Horticultural
30    polyhouses  or  hoop houses used for propagating, growing, or
31    overwintering plants shall be considered farm  machinery  and
32    equipment  under  this item (2). Agricultural chemical tender
 
                            -33-              LRB9203211SMdvA
 1    tanks and dry boxes shall include units sold separately  from
 2    a  motor  vehicle  required  to  be  licensed  and units sold
 3    mounted on a motor vehicle required to be  licensed,  if  the
 4    selling price of the tender is separately stated.
 5        Farm  machinery  and  equipment  shall  include precision
 6    farming equipment  that  is  installed  or  purchased  to  be
 7    installed  on farm machinery and equipment including, but not
 8    limited  to,  tractors,   harvesters,   sprayers,   planters,
 9    seeders,  or spreaders. Precision farming equipment includes,
10    but is not  limited  to,  soil  testing  sensors,  computers,
11    monitors,  software,  global positioning and mapping systems,
12    and other such equipment.
13        Farm machinery and  equipment  also  includes  computers,
14    sensors,  software,  and  related equipment used primarily in
15    the computer-assisted  operation  of  production  agriculture
16    facilities,  equipment,  and  activities  such  as,  but  not
17    limited  to,  the  collection, monitoring, and correlation of
18    animal and crop data for the purpose  of  formulating  animal
19    diets  and  agricultural  chemicals.  This item (7) is exempt
20    from the provisions of Section 2-70.
21        (3)  Distillation machinery and equipment, sold as a unit
22    or kit, assembled or installed by the retailer, certified  by
23    the  user to be used only for the production of ethyl alcohol
24    that will be used for consumption  as  motor  fuel  or  as  a
25    component of motor fuel for the personal use of the user, and
26    not subject to sale or resale.
27        (4)  Graphic  arts  machinery  and  equipment,  including
28    repair   and  replacement  parts,  both  new  and  used,  and
29    including that manufactured on special order or purchased for
30    lease, certified by the purchaser to be  used  primarily  for
31    graphic arts production.
32        (5)  A  motor  vehicle  of  the  first  division, a motor
33    vehicle of the second division that is a self-contained motor
34    vehicle designed or permanently converted to  provide  living
 
                            -34-              LRB9203211SMdvA
 1    quarters  for  recreational,  camping,  or  travel  use, with
 2    direct walk through access to the living  quarters  from  the
 3    driver's seat, or a motor vehicle of the second division that
 4    is  of  the van configuration designed for the transportation
 5    of not less than 7 nor more than 16 passengers, as defined in
 6    Section 1-146 of the Illinois Vehicle Code, that is used  for
 7    automobile  renting,  as  defined  in  the Automobile Renting
 8    Occupation and Use Tax Act.
 9        (6)  Personal  property  sold  by   a   teacher-sponsored
10    student   organization   affiliated  with  an  elementary  or
11    secondary school located in Illinois.
12        (7)  Proceeds of that portion of the selling price  of  a
13    passenger car the sale of which is subject to the Replacement
14    Vehicle Tax.
15        (8)  Personal  property  sold  to an Illinois county fair
16    association for use in conducting,  operating,  or  promoting
17    the county fair.
18        (9)  Personal  property  sold to a not-for-profit arts or
19    cultural organization that establishes, by proof required  by
20    the  Department  by  rule,  that it has received an exemption
21    under Section 501(c)(3) of the Internal Revenue Code and that
22    is organized and operated for the presentation or support  of
23    arts or cultural programming, activities, or services.  These
24    organizations  include,  but  are  not  limited to, music and
25    dramatic arts organizations such as symphony  orchestras  and
26    theatrical  groups,  arts and cultural service organizations,
27    local arts councils, visual  arts  organizations,  and  media
28    arts organizations.
29        (10)  Personal  property  sold by a corporation, society,
30    association, foundation, institution, or organization,  other
31    than  a  limited  liability  company,  that  is organized and
32    operated as  a  not-for-profit  service  enterprise  for  the
33    benefit  of  persons 65 years of age or older if the personal
34    property was not purchased by the enterprise for the  purpose
 
                            -35-              LRB9203211SMdvA
 1    of resale by the enterprise.
 2        (11)  Personal property sold to a governmental body, to a
 3    corporation, society, association, foundation, or institution
 4    organized and operated exclusively for charitable, religious,
 5    or  educational purposes, or to a not-for-profit corporation,
 6    society,    association,    foundation,    institution,    or
 7    organization that has no compensated  officers  or  employees
 8    and   that  is  organized  and  operated  primarily  for  the
 9    recreation of persons 55 years of age  or  older.  A  limited
10    liability  company  may  qualify for the exemption under this
11    paragraph only if the limited liability company is  organized
12    and  operated  exclusively  for  educational purposes. On and
13    after July 1, 1987, however, no entity otherwise eligible for
14    this exemption shall make tax-free purchases unless it has an
15    active identification number issued by the Department.
16        (12)  Personal property sold to interstate  carriers  for
17    hire  for  use as rolling stock moving in interstate commerce
18    or to lessors under leases of one year or longer executed  or
19    in  effect at the time of purchase by interstate carriers for
20    hire for use as rolling stock moving in  interstate  commerce
21    and  equipment  operated  by  a  telecommunications provider,
22    licensed as a common carrier by  the  Federal  Communications
23    Commission,  which  is permanently installed in or affixed to
24    aircraft moving in interstate commerce.
25        (13)  Proceeds from sales to owners, lessors, or shippers
26    of tangible personal property that is utilized by  interstate
27    carriers  for  hire  for  use  as  rolling  stock  moving  in
28    interstate    commerce    and   equipment   operated   by   a
29    telecommunications provider, licensed as a common carrier  by
30    the  Federal  Communications Commission, which is permanently
31    installed in or affixed  to  aircraft  moving  in  interstate
32    commerce.
33        (14)  Machinery  and  equipment  that will be used by the
34    purchaser, or a lessee of the  purchaser,  primarily  in  the
 
                            -36-              LRB9203211SMdvA
 1    process  of  manufacturing  or  assembling  tangible personal
 2    property for wholesale or retail sale or lease,  whether  the
 3    sale or lease is made directly by the manufacturer or by some
 4    other  person,  whether the materials used in the process are
 5    owned by the manufacturer or some other  person,  or  whether
 6    the sale or lease is made apart from or as an incident to the
 7    seller's  engaging  in  the  service  occupation of producing
 8    machines, tools,  dies,  jigs,  patterns,  gauges,  or  other
 9    similar  items  of no commercial value on special order for a
10    particular purchaser.
11        (15)  Proceeds of mandatory  service  charges  separately
12    stated  on  customers'  bills for purchase and consumption of
13    food and beverages, to the extent that the  proceeds  of  the
14    service  charge  are  in  fact  turned  over  as tips or as a
15    substitute for tips to the employees who participate directly
16    in preparing, serving, hosting or cleaning  up  the  food  or
17    beverage function with respect to which the service charge is
18    imposed.
19        (16)  Petroleum  products  sold  to  a  purchaser  if the
20    seller is prohibited by federal law from charging tax to  the
21    purchaser.
22        (17)  Tangible personal property sold to a common carrier
23    by rail or motor that receives the physical possession of the
24    property  in  Illinois  and  that transports the property, or
25    shares with another common carrier in the  transportation  of
26    the  property,  out of Illinois on a standard uniform bill of
27    lading showing the seller of the property as the  shipper  or
28    consignor  of the property to a destination outside Illinois,
29    for use outside Illinois.
30        (18)  Legal tender,  currency,  medallions,  or  gold  or
31    silver   coinage   issued  by  the  State  of  Illinois,  the
32    government of the United States of America, or the government
33    of any foreign country, and bullion.
34        (19)  Oil field  exploration,  drilling,  and  production
 
                            -37-              LRB9203211SMdvA
 1    equipment, including (i) rigs and parts of rigs, rotary rigs,
 2    cable  tool  rigs,  and  workover rigs, (ii) pipe and tubular
 3    goods, including casing and drill strings,  (iii)  pumps  and
 4    pump-jack  units,  (iv) storage tanks and flow lines, (v) any
 5    individual  replacement  part  for  oil  field   exploration,
 6    drilling,  and  production  equipment, and (vi) machinery and
 7    equipment purchased for lease; but excluding  motor  vehicles
 8    required to be registered under the Illinois Vehicle Code.
 9        (20)  Photoprocessing  machinery and equipment, including
10    repair and replacement parts, both new  and  used,  including
11    that   manufactured   on  special  order,  certified  by  the
12    purchaser to  be  used  primarily  for  photoprocessing,  and
13    including  photoprocessing  machinery and equipment purchased
14    for lease.
15        (21)  Coal  exploration,  mining,   offhighway   hauling,
16    processing, maintenance, and reclamation equipment, including
17    replacement  parts  and  equipment,  and  including equipment
18    purchased for lease, but excluding motor vehicles required to
19    be registered under the Illinois Vehicle Code.
20        (22)  Fuel and petroleum products sold to or used  by  an
21    air  carrier,  certified  by  the  carrier  to  be  used  for
22    consumption,  shipment,  or  storage  in  the  conduct of its
23    business as an air common carrier, for a flight destined  for
24    or  returning from a location or locations outside the United
25    States without regard  to  previous  or  subsequent  domestic
26    stopovers.
27        (23)  A  transaction  in  which  the  purchase  order  is
28    received  by  a  florist who is located outside Illinois, but
29    who has a florist located in Illinois deliver the property to
30    the purchaser or the purchaser's donee in Illinois.
31        (24)  Fuel consumed or used in the  operation  of  ships,
32    barges,  or  vessels  that  are  used primarily in or for the
33    transportation of property or the conveyance of  persons  for
34    hire  on  rivers  bordering  on  this  State  if  the fuel is
 
                            -38-              LRB9203211SMdvA
 1    delivered by the seller to the purchaser's  barge,  ship,  or
 2    vessel while it is afloat upon that bordering river.
 3        (25)  A motor vehicle sold in this State to a nonresident
 4    even though the motor vehicle is delivered to the nonresident
 5    in  this  State,  if the motor vehicle is not to be titled in
 6    this State, and if a driveaway decal permit is issued to  the
 7    motor  vehicle  as  provided in Section 3-603 of the Illinois
 8    Vehicle Code or if  the  nonresident  purchaser  has  vehicle
 9    registration  plates  to  transfer  to the motor vehicle upon
10    returning to his or her home  state.   The  issuance  of  the
11    driveaway   decal   permit   or   having   the   out-of-state
12    registration plates to be transferred is prima facie evidence
13    that the motor vehicle will not be titled in this State.
14        (26)  Semen used for artificial insemination of livestock
15    for direct agricultural production.
16        (27)  Horses, or interests in horses, registered with and
17    meeting  the  requirements  of  any of the Arabian Horse Club
18    Registry of America, Appaloosa Horse Club,  American  Quarter
19    Horse  Association,  United  States  Trotting Association, or
20    Jockey Club, as appropriate, used for purposes of breeding or
21    racing for prizes.
22        (28)  Computers and communications equipment utilized for
23    any hospital purpose and equipment  used  in  the  diagnosis,
24    analysis,  or treatment of hospital patients sold to a lessor
25    who leases the equipment, under a lease of one year or longer
26    executed or in effect at the  time  of  the  purchase,  to  a
27    hospital  that  has  been  issued  an  active  tax  exemption
28    identification  number  by the Department under Section 1g of
29    this Act.
30        (29)  Personal property sold to a lessor who  leases  the
31    property,  under a lease of one year or longer executed or in
32    effect at the time of the purchase, to  a  governmental  body
33    that  has  been issued an active tax exemption identification
34    number by the Department under Section 1g of this Act.
 
                            -39-              LRB9203211SMdvA
 1        (30)  Beginning with taxable years  ending  on  or  after
 2    December  31, 1995 and ending with taxable years ending on or
 3    before December 31, 2004, personal property that  is  donated
 4    for  disaster  relief  to  be  used  in  a State or federally
 5    declared disaster area in Illinois or bordering Illinois by a
 6    manufacturer or retailer that is registered in this State  to
 7    a   corporation,   society,   association,   foundation,   or
 8    institution  that  has  been  issued  a  sales  tax exemption
 9    identification number by the Department that assists  victims
10    of the disaster who reside within the declared disaster area.
11        (31)  Beginning  with  taxable  years  ending on or after
12    December 31, 1995 and ending with taxable years ending on  or
13    before  December  31, 2004, personal property that is used in
14    the performance of  infrastructure  repairs  in  this  State,
15    including  but  not  limited  to municipal roads and streets,
16    access roads, bridges,  sidewalks,  waste  disposal  systems,
17    water  and  sewer  line  extensions,  water  distribution and
18    purification facilities, storm water drainage  and  retention
19    facilities, and sewage treatment facilities, resulting from a
20    State or federally declared disaster in Illinois or bordering
21    Illinois  when  such  repairs  are  initiated  on  facilities
22    located  in  the declared disaster area within 6 months after
23    the disaster.
24        (32)  Beginning July 1, 1999, game or game birds sold  at
25    a  "game  breeding  and  hunting preserve area" or an "exotic
26    game hunting area" as those terms are used  in  the  Wildlife
27    Code or at a hunting enclosure approved through rules adopted
28    by  the  Department  of Natural Resources.  This paragraph is
29    exempt from the provisions of Section 2-70.
30        (33) (32)  A motor vehicle, as that term  is  defined  in
31    Section  1-146  of the Illinois Vehicle Code, that is donated
32    to  a  corporation,  limited  liability   company,   society,
33    association, foundation, or institution that is determined by
34    the  Department  to be organized and operated exclusively for
 
                            -40-              LRB9203211SMdvA
 1    educational purposes.  For purposes  of  this  exemption,  "a
 2    corporation, limited liability company, society, association,
 3    foundation, or institution organized and operated exclusively
 4    for  educational  purposes"  means  all  tax-supported public
 5    schools, private schools that offer systematic instruction in
 6    useful branches of  learning  by  methods  common  to  public
 7    schools  and  that  compare  favorably  in  their  scope  and
 8    intensity with the course of study presented in tax-supported
 9    schools,  and  vocational  or technical schools or institutes
10    organized and operated exclusively to  provide  a  course  of
11    study  of  not  less  than  6  weeks duration and designed to
12    prepare individuals to follow a trade or to pursue a  manual,
13    technical,  mechanical,  industrial,  business, or commercial
14    occupation.
15        (34) (33)  Beginning January 1, 2000,  personal property,
16    including food, purchased through fundraising events for  the
17    benefit  of  a  public  or  private  elementary  or secondary
18    school, a group of those  schools,  or  one  or  more  school
19    districts if the events are sponsored by an entity recognized
20    by  the school district that consists primarily of volunteers
21    and includes parents and teachers  of  the  school  children.
22    This  paragraph  does not apply to fundraising events (i) for
23    the benefit of private home instruction or (ii) for which the
24    fundraising entity purchases the personal  property  sold  at
25    the  events  from  another individual or entity that sold the
26    property for the purpose of resale by the fundraising  entity
27    and  that  profits  from  the sale to the fundraising entity.
28    This paragraph is exempt from the provisions of Section 2-70.
29        (35)  (32)  Beginning  January  1,  2000,  new  or   used
30    automatic  vending  machines  that prepare and serve hot food
31    and beverages, including coffee, soup, and other  items,  and
32    replacement  parts  for  these  machines.   This paragraph is
33    exempt from the provisions of Section 2-70.
34        (36)  Beginning in 2001, propane  and  home  heating  oil
 
                            -41-              LRB9203211SMdvA
 1    sold  to  residential  customers  on  or after December 1 and
 2    continuing through March 31 of the next year.  This paragraph
 3    is exempt from the provisions of Section 2-70.
 4        (37)  Beginning in 2002, for bills  issued  on  or  after
 5    January    and  through  April  30  each  year,  natural  gas
 6    distributed, supplied,  furnished,  or  sold  to  residential
 7    customers.  This  paragraph  is exempt from the provisions of
 8    Section 2-70.
 9    (Source: P.A.  90-14,  eff.  7-1-97;  90-519,  eff.   6-1-98;
10    90-552,  eff.  12-12-97;  90-605,  eff.  6-30-98; 91-51, eff.
11    6-30-99; 91-200, eff. 7-20-99; 91-439, eff.  8-6-99;  91-533,
12    eff.  8-13-99;  91-637,  eff.  8-20-99; 91-644, eff. 8-20-99;
13    revised 9-28-99.)

14        Section 35.  The Gas Revenue Tax Act is amended by adding
15    Section 2a.4 as follows:

16        (35 ILCS 615/2a.4 new)
17        Sec.  2a.4   Winter   tax   exemption   for   residential
18    customers.   No   tax  is  imposed  under  this  Act  on  gas
19    distributed, supplied,  furnished,  or  sold  to  residential
20    customers, for bills issued on or after January 1 and through
21    April  30  each  year.   This  Section  is  exempt  from  the
22    provisions of Section 2a.3.

23        Section  40.   The  Counties  Code is amended by changing
24    Sections 5-1006, 5-1006.5 and 5-1007 as follows:

25        (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
26        Sec. 5-1006.  Home Rule County Retailers' Occupation  Tax
27    Law.  Any  county  that  is a home rule unit may impose a tax
28    upon all persons engaged in the business of selling  tangible
29    personal  property,  other  than an item of tangible personal
30    property titled or registered with an agency of this  State's

 
                            -42-              LRB9203211SMdvA
 1    government,  at  retail  in  the county on the gross receipts
 2    from such sales made in the course  of  their  business.   If
 3    imposed,  this  tax shall only be imposed in 1/4% increments.
 4    On and after September 1, 1991, this additional tax  may  not
 5    be  imposed  on the sales of food for human consumption which
 6    is to be consumed off the premises where it  is  sold  (other
 7    than alcoholic beverages, soft drinks and food which has been
 8    prepared  for  immediate  consumption)  and  prescription and
 9    nonprescription  medicines,  drugs,  medical  appliances  and
10    insulin, urine testing materials, syringes and  needles  used
11    by  diabetics. The tax imposed by a home rule county pursuant
12    to this Section and all civil penalties that may be  assessed
13    as an incident thereof shall be collected and enforced by the
14    State Department of Revenue.  The certificate of registration
15    that  is  issued  by  the  Department to a retailer under the
16    Retailers' Occupation Tax Act shall permit  the  retailer  to
17    engage  in  a business that is taxable under any ordinance or
18    resolution  enacted  pursuant   to   this   Section   without
19    registering   separately   with  the  Department  under  such
20    ordinance  or  resolution  or  under   this   Section.    The
21    Department  shall  have  full power to administer and enforce
22    this  Section;  to  collect  all  taxes  and  penalties   due
23    hereunder;  to dispose of taxes and penalties so collected in
24    the manner hereinafter provided; and to determine all  rights
25    to  credit  memoranda  arising  on  account  of the erroneous
26    payment of tax or penalty hereunder.  In  the  administration
27    of,  and  compliance  with,  this Section, the Department and
28    persons who are subject to this Section shall have  the  same
29    rights,  remedies, privileges, immunities, powers and duties,
30    and  be  subject  to  the  same   conditions,   restrictions,
31    limitations,  penalties  and definitions of terms, and employ
32    the same modes of procedure, as are prescribed in Sections 1,
33    1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65  (in
34    respect  to  all provisions therein other than the State rate
 
                            -43-              LRB9203211SMdvA
 1    of tax), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,  5i,  5j,  5k,
 2    5l,  6,  6a,  6b,  6c,  7,  8,  9,  10,  11, 12 and 13 of the
 3    Retailers' Occupation Tax Act and Section 3-7 of the  Uniform
 4    Penalty  and  Interest  Act,  as fully as if those provisions
 5    were set forth herein.
 6        No tax may be imposed by a home rule county  pursuant  to
 7    this Section unless the county also imposes a tax at the same
 8    rate pursuant to Section 5-1007.
 9        Beginning  in  2001, propane and home heating oil sold to
10    residential customers on or  after  December  1  and  through
11    March 31 of each year are exempt from the tax imposed by this
12    Section or under the authority of any home rule power.
13        Beginning in 2002, for bills issued on or after January 1
14    and  through  April  30  each  year, natural gas distributed,
15    supplied, furnished, or  sold  to  residential  customers  is
16    exempt  from  the  tax  imposed  by this Section or under the
17    authority of any home rule power.
18        This amendatory Act of the 92nd  General  Assembly  is  a
19    denial  and  limitation  of  home  rule  powers  to tax under
20    subsection (g) of Section 6 of Article VII  of  the  Illinois
21    Constitution.
22        Persons  subject  to  any  tax  imposed  pursuant  to the
23    authority granted in this Section  may  reimburse  themselves
24    for  their  seller's  tax  liability  hereunder by separately
25    stating such tax as an additional charge, which charge may be
26    stated in combination, in a single  amount,  with  State  tax
27    which  sellers are required to collect under the Use Tax Act,
28    pursuant to such bracket  schedules  as  the  Department  may
29    prescribe.
30        Whenever  the  Department determines that a refund should
31    be made under this Section to a claimant instead of issuing a
32    credit memorandum, the  Department  shall  notify  the  State
33    Comptroller,  who  shall  cause the order to be drawn for the
34    amount specified and to the person named in the  notification
 
                            -44-              LRB9203211SMdvA
 1    from  the  Department.  The refund shall be paid by the State
 2    Treasurer out of the home rule county  retailers'  occupation
 3    tax fund.
 4        The  Department  shall  forthwith  pay  over to the State
 5    Treasurer, ex officio, as trustee, all  taxes  and  penalties
 6    collected  hereunder.   On  or  before  the  25th day of each
 7    calendar month, the Department shall prepare and  certify  to
 8    the  Comptroller  the disbursement of stated sums of money to
 9    named counties, the counties to be those from which retailers
10    have paid taxes or  penalties  hereunder  to  the  Department
11    during the second preceding calendar month.  The amount to be
12    paid to each county shall be the amount (not including credit
13    memoranda)  collected  hereunder  during the second preceding
14    calendar  month  by  the  Department  plus  an   amount   the
15    Department determines is necessary to offset any amounts that
16    were  erroneously  paid  to  a different taxing body, and not
17    including an amount equal  to  the  amount  of  refunds  made
18    during  the second preceding calendar month by the Department
19    on behalf of such county, and not including any amount  which
20    the  Department determines is necessary to offset any amounts
21    which were payable  to  a  different  taxing  body  but  were
22    erroneously paid to the county. Within 10 days after receipt,
23    by  the Comptroller, of the disbursement certification to the
24    counties provided for in this Section  to  be  given  to  the
25    Comptroller  by  the  Department, the Comptroller shall cause
26    the  orders  to  be  drawn  for  the  respective  amounts  in
27    accordance   with   the   directions   contained    in    the
28    certification.
29        In addition to the disbursement required by the preceding
30    paragraph,  an allocation shall be made in March of each year
31    to  each  county  that  received  more   than   $500,000   in
32    disbursements  under the preceding paragraph in the preceding
33    calendar year.  The allocation shall be in an amount equal to
34    the average monthly distribution made  to  each  such  county
 
                            -45-              LRB9203211SMdvA
 1    under  the  preceding paragraph during the preceding calendar
 2    year (excluding the  2  months  of  highest  receipts).   The
 3    distribution  made  in  March  of each year subsequent to the
 4    year in  which  an  allocation  was  made  pursuant  to  this
 5    paragraph and the preceding paragraph shall be reduced by the
 6    amount  allocated  and  disbursed under this paragraph in the
 7    preceding calendar year.  The Department  shall  prepare  and
 8    certify  to  the Comptroller for disbursement the allocations
 9    made in accordance with this paragraph.
10        For the purpose of  determining  the  local  governmental
11    unit  whose tax is applicable, a retail sale by a producer of
12    coal or other mineral mined in Illinois is a sale  at  retail
13    at  the  place  where  the  coal  or  other  mineral mined in
14    Illinois is extracted from the earth.   This  paragraph  does
15    not  apply  to  coal or other mineral when it is delivered or
16    shipped by the seller to the purchaser  at  a  point  outside
17    Illinois  so  that the sale is exempt under the United States
18    Constitution as a sale in interstate or foreign commerce.
19        Nothing in this Section shall be construed to authorize a
20    county to impose a tax upon the privilege of engaging in  any
21    business  which  under  the Constitution of the United States
22    may not be made the subject of taxation by this State.
23        An ordinance or resolution imposing  or  discontinuing  a
24    tax hereunder or effecting a change in the rate thereof shall
25    be  adopted  and  a  certified  copy  thereof  filed with the
26    Department on or before the first day of June, whereupon  the
27    Department  shall  proceed  to  administer  and  enforce this
28    Section as of the first day of September next following  such
29    adoption  and filing. Beginning January 1, 1992, an ordinance
30    or resolution imposing or discontinuing the tax hereunder  or
31    effecting a change in the rate thereof shall be adopted and a
32    certified copy thereof filed with the Department on or before
33    the first day of July, whereupon the Department shall proceed
34    to administer and enforce this Section as of the first day of
 
                            -46-              LRB9203211SMdvA
 1    October  next  following  such adoption and filing. Beginning
 2    January 1, 1993,  an  ordinance  or  resolution  imposing  or
 3    discontinuing  the tax hereunder or effecting a change in the
 4    rate thereof shall be adopted and a  certified  copy  thereof
 5    filed  with  the  Department  on  or  before the first day of
 6    October, whereupon the Department shall proceed to administer
 7    and enforce this Section as of the first day of January  next
 8    following  such adoption and filing. Beginning April 1, 1998,
 9    an ordinance or resolution imposing or discontinuing the  tax
10    hereunder  or  effecting  a  change in the rate thereof shall
11    either (i) be adopted and a certified copy thereof filed with
12    the Department on or before the first day of April, whereupon
13    the Department shall proceed to administer and  enforce  this
14    Section  as  of  the  first  day  of  July next following the
15    adoption and filing; or (ii) be adopted and a certified  copy
16    thereof  filed with the Department on or before the first day
17    of  October,  whereupon  the  Department  shall  proceed   to
18    administer  and  enforce  this Section as of the first day of
19    January next following the adoption and filing.
20        When certifying the amount of a monthly disbursement to a
21    county under this Section, the Department shall  increase  or
22    decrease  such  amount  by  an amount necessary to offset any
23    misallocation of previous disbursements.  The  offset  amount
24    shall be the amount erroneously disbursed within the previous
25    6 months from the time a misallocation is discovered.
26        This  Section shall be known and may be cited as the Home
27    Rule County Retailers' Occupation Tax Law.
28    (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)

29        (55 ILCS 5/5-1006.5)
30        Sec. 5-1006.5.  Special County Retailers' Occupation  Tax
31    For Public Safety.
32        (a)  The county board of any county may impose a tax upon
33    all  persons  engaged  in  the  business  of selling tangible
 
                            -47-              LRB9203211SMdvA
 1    personal property, other than  personal  property  titled  or
 2    registered  with  an  agency  of  this State's government, at
 3    retail in the county on the gross  receipts  from  the  sales
 4    made  in the course of business to provide revenue to be used
 5    exclusively for public safety purposes in that county,  if  a
 6    proposition for the tax has been submitted to the electors of
 7    that county and approved by a majority of those voting on the
 8    question.   If  imposed,  this  tax  shall be imposed only in
 9    one-quarter percent increments.  By  resolution,  the  county
10    board  may  order  the  proposition  to  be  submitted at any
11    election.  The county clerk shall certify the question to the
12    proper election authority, who shall submit  the  proposition
13    at an election in accordance with the general election law.
14        The  proposition  shall be in substantially the following
15    form:
16             "Shall (name of county) be authorized  to  impose  a
17        public  safety  tax  at the rate of .... upon all persons
18        engaged in the  business  of  selling  tangible  personal
19        property  at  retail in the county on gross receipts from
20        the sales made in the course of their business to be used
21        for crime prevention, detention, and other public  safety
22        purposes?"
23    Votes  shall  be recorded as Yes or No.  If a majority of the
24    electors voting on the proposition vote in favor of  it,  the
25    county may impose the tax.
26        This  additional  tax  may not be imposed on the sales of
27    food for human consumption that is to  be  consumed  off  the
28    premises  where  it  is sold (other than alcoholic beverages,
29    soft drinks, and food which has been prepared  for  immediate
30    consumption) and prescription and non-prescription medicines,
31    drugs,   medical   appliances   and  insulin,  urine  testing
32    materials, syringes, and needles used by diabetics.  The  tax
33    imposed  by  a  county  under  this  Section  and  all  civil
34    penalties  that  may  be  assessed  as an incident of the tax
 
                            -48-              LRB9203211SMdvA
 1    shall be collected and enforced by the Illinois Department of
 2    Revenue.  The certificate of registration that is  issued  by
 3    the  Department to a retailer under the Retailers' Occupation
 4    Tax Act shall permit the retailer to  engage  in  a  business
 5    that  is  taxable  without  registering  separately  with the
 6    Department  under  an  ordinance  or  resolution  under  this
 7    Section.  The Department has full  power  to  administer  and
 8    enforce  this Section, to collect all taxes and penalties due
 9    under this Section, to dispose  of  taxes  and  penalties  so
10    collected  in  the  manner  provided  in this Section, and to
11    determine all rights to credit memoranda arising  on  account
12    of  the  erroneous  payment  of  a  tax or penalty under this
13    Section.  In the administration of and compliance  with  this
14    Section,  the  Department and persons who are subject to this
15    Section shall (i) have the same rights, remedies, privileges,
16    immunities, powers, and duties, (ii) be subject to  the  same
17    conditions,   restrictions,   limitations,   penalties,   and
18    definitions  of  terms,  and  (iii)  employ the same modes of
19    procedure as are prescribed in Sections 1, 1a, 1a-1, 1d,  1e,
20    1f,  1i,  1j,  1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to
21    all provisions contained in those  Sections  other  than  the
22    State  rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except
23    provisions  relating  to  transaction  returns  and   quarter
24    monthly  payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
25    5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12,  and  13
26    of  the  Retailers' Occupation Tax Act and Section 3-7 of the
27    Uniform Penalty and Interest Act as if those provisions  were
28    set forth in this Section.
29        Beginning  in  2001, propane and home heating oil sold to
30    residential customers on or  after  December  1  and  through
31    March 31 of each year are exempt from the tax imposed by this
32    subsection or under the authority of any home rule power.
33        Beginning in 2001, for bills issued on or after January 1
34    and  through  April  30  each  year, natural gas distributed,
 
                            -49-              LRB9203211SMdvA
 1    supplied, furnished, or  sold  to  residential  customers  is
 2    exempt  from  the tax imposed by this subsection or under the
 3    authority of any home rule power.
 4        This amendatory Act of the 92nd  General  Assembly  is  a
 5    denial  and  limitation  of  home  rule  powers  to tax under
 6    subsection (g) of Section 6 of Article VII  of  the  Illinois
 7    Constitution.
 8        Persons  subject  to  any tax imposed under the authority
 9    granted in this Section may reimburse  themselves  for  their
10    sellers'  tax  liability  by separately stating the tax as an
11    additional charge, which charge may be stated in combination,
12    in a single amount, with State tax which sellers are required
13    to collect under the Use Tax Act, pursuant to such  bracketed
14    schedules as the Department may prescribe.
15        Whenever  the  Department determines that a refund should
16    be made under this Section to a claimant instead of issuing a
17    credit memorandum, the  Department  shall  notify  the  State
18    Comptroller,  who  shall  cause the order to be drawn for the
19    amount specified and to the person named in the  notification
20    from  the  Department.  The refund shall be paid by the State
21    Treasurer  out  of  the  County  Public   Safety   Retailers'
22    Occupation Tax Fund.
23        (b)  If  a  tax  has been imposed under subsection (a), a
24    service occupation tax shall also be imposed at the same rate
25    upon all persons engaged, in the county, in the  business  of
26    making  sales of service, who, as an incident to making those
27    sales of service, transfer tangible personal property  within
28    the  county as an incident to a sale of service. This tax may
29    not be imposed on sales of food for human consumption that is
30    to be consumed off the premises where it is sold (other  than
31    alcoholic  beverages,  soft  drinks,  and  food  prepared for
32    immediate consumption) and prescription and  non-prescription
33    medicines,  drugs,  medical  appliances  and  insulin,  urine
34    testing  materials,  syringes, and needles used by diabetics.
 
                            -50-              LRB9203211SMdvA
 1    The tax imposed under this subsection and all civil penalties
 2    that  may  be  assessed  as  an  incident  thereof  shall  be
 3    collected and enforced by  the  Department  of  Revenue.  The
 4    Department  has  full  power  to  administer and enforce this
 5    subsection; to collect all taxes and penalties due hereunder;
 6    to dispose of taxes and penalties so collected in the  manner
 7    hereinafter  provided;  and to determine all rights to credit
 8    memoranda arising on account of the erroneous payment of  tax
 9    or   penalty  hereunder.    In  the  administration  of,  and
10    compliance with this subsection, the Department  and  persons
11    who  are  subject  to  this paragraph shall (i) have the same
12    rights, remedies, privileges, immunities, powers, and duties,
13    (ii)  be  subject  to  the  same  conditions,   restrictions,
14    limitations,    penalties,    exclusions,   exemptions,   and
15    definitions of terms, and (iii)  employ  the  same  modes  of
16    procedure  as  are  prescribed in Sections 2 (except that the
17    reference to State in the definition of supplier  maintaining
18    a place of business in this State shall mean the county), 2a,
19    2b,  2c, 3 through 3-50 (in respect to all provisions therein
20    other than the  State  rate  of  tax),  4  (except  that  the
21    reference  to  the  State  shall  be  to the county), 5, 7, 8
22    (except that the jurisdiction to which the  tax  shall  be  a
23    debt  to  the extent indicated in that Section 8 shall be the
24    county), 9  (except  as  to  the  disposition  of  taxes  and
25    penalties  collected),  10,  11,  12  (except  the  reference
26    therein  to Section 2b of the Retailers' Occupation Tax Act),
27    13 (except that any reference to the  State  shall  mean  the
28    county),  Section  15,  16,  17, 18, 19 and 20 of the Service
29    Occupation Tax Act and Section 3-7 of the Uniform Penalty and
30    Interest Act, as fully as if those provisions were set  forth
31    herein.
32        Beginning  in  2001, propane and home heating oil sold to
33    residential customers on or  after  December  1  and  through
34    March 31 of each year are exempt from the tax imposed by this
 
                            -51-              LRB9203211SMdvA
 1    subsection or under the authority of any home rule power.
 2        Beginning in 2002, for bills issued on or after January 1
 3    and  through  April  30  each  year, natural gas distributed,
 4    supplied, furnished, or  sold  to  residential  customers  is
 5    exempt  from  the tax imposed by this subsection or under the
 6    authority of any home rule power.
 7        This amendatory Act of the 92nd  General  Assembly  is  a
 8    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        Persons  subject  to  any tax imposed under the authority
12    granted in this subsection may reimburse themselves for their
13    serviceman's tax liability by separately stating the  tax  as
14    an   additional   charge,  which  charge  may  be  stated  in
15    combination,  in  a  single  amount,  with  State  tax   that
16    servicemen  are  authorized  to collect under the Service Use
17    Tax Act, in accordance with such  bracket  schedules  as  the
18    Department may prescribe.
19        Whenever  the  Department determines that a refund should
20    be made under  this  subsection  to  a  claimant  instead  of
21    issuing  a credit memorandum, the Department shall notify the
22    State Comptroller, who shall cause the warrant  to  be  drawn
23    for  the  amount  specified,  and to the person named, in the
24    notification from the Department.  The refund shall  be  paid
25    by  the  State  Treasurer  out  of  the  County Public Safety
26    Retailers' Occupation Fund.
27        Nothing  in  this  subsection  shall  be   construed   to
28    authorize  the  county  to impose a tax upon the privilege of
29    engaging in any business which under the Constitution of  the
30    United  States may not be made the subject of taxation by the
31    State.
32        (c)  The Department shall immediately  pay  over  to  the
33    State  Treasurer,  ex  officio,  as  trustee,  all  taxes and
34    penalties collected under this Section to be  deposited  into
 
                            -52-              LRB9203211SMdvA
 1    the  County  Public  Safety  Retailers'  Occupation Tax Fund,
 2    which shall be an unappropriated trust fund held  outside  of
 3    the  State  treasury.   On  or  before  the  25th day of each
 4    calendar month, the Department shall prepare and  certify  to
 5    the  Comptroller  the disbursement of stated sums of money to
 6    the  counties  from  which  retailers  have  paid  taxes   or
 7    penalties  to  the  Department  during  the  second preceding
 8    calendar month.  The amount to be paid to each  county  shall
 9    be  the  amount  (not  including  credit memoranda) collected
10    under this Section during the second preceding calendar month
11    by the Department plus an amount the Department determines is
12    necessary to offset any amounts that were erroneously paid to
13    a different taxing body, and  not  including  (i)  an  amount
14    equal  to  the  amount  of  refunds  made  during  the second
15    preceding calendar month by the Department on behalf  of  the
16    county  and (ii) any amount that the Department determines is
17    necessary to offset  any  amounts  that  were  payable  to  a
18    different  taxing  body  but  were  erroneously  paid  to the
19    county.  Within 10 days after receipt by the  Comptroller  of
20    the  disbursement  certification to the counties provided for
21    in this Section  to  be  given  to  the  Comptroller  by  the
22    Department,  the  Comptroller  shall  cause  the orders to be
23    drawn  for  the  respective  amounts   in   accordance   with
24    directions contained in the certification.
25        In addition to the disbursement required by the preceding
26    paragraph,  an allocation shall be made in March of each year
27    to  each  county  that  received  more   than   $500,000   in
28    disbursements  under the preceding paragraph in the preceding
29    calendar year.  The allocation shall be in an amount equal to
30    the average monthly distribution made  to  each  such  county
31    under  the  preceding paragraph during the preceding calendar
32    year (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
 
                            -53-              LRB9203211SMdvA
 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        (d)  For   the   purpose   of   determining   the   local
 7    governmental unit whose tax is applicable, a retail sale by a
 8    producer of coal or another mineral mined in  Illinois  is  a
 9    sale  at  retail at the place where the coal or other mineral
10    mined  in  Illinois  is  extracted  from  the  earth.    This
11    paragraph  does  not apply to coal or another mineral when it
12    is delivered or shipped by the seller to the purchaser  at  a
13    point  outside  Illinois so that the sale is exempt under the
14    United States Constitution as a sale in interstate or foreign
15    commerce.
16        (e)  Nothing  in  this  Section  shall  be  construed  to
17    authorize a county to impose a  tax  upon  the  privilege  of
18    engaging  in  any business that under the Constitution of the
19    United States may not be made the subject of taxation by this
20    State.
21        (e-5)  If a county imposes a tax under this Section,  the
22    county board may, by ordinance, discontinue or lower the rate
23    of  the  tax.   If  the  county  board lowers the tax rate or
24    discontinues the tax, a referendum must be held in accordance
25    with subsection (a) of this Section in order to increase  the
26    rate of the tax or to reimpose the discontinued tax.
27        (f)  Beginning April 1, 1998, the results of any election
28    authorizing  a proposition to impose a tax under this Section
29    or effecting a change in the rate of tax,  or  any  ordinance
30    lowering   the  rate  or  discontinuing  the  tax,  shall  be
31    certified by the county clerk and  filed  with  the  Illinois
32    Department  of  Revenue either (i) on or before the first day
33    of  April,  whereupon  the  Department   shall   proceed   to
34    administer  and  enforce  the tax as of the first day of July
 
                            -54-              LRB9203211SMdvA
 1    next following the filing; or (ii) on or before the first day
 2    of  October,  whereupon  the  Department  shall  proceed   to
 3    administer and enforce the tax as of the first day of January
 4    next following the filing.
 5        (g)  When certifying the amount of a monthly disbursement
 6    to a county under this Section, the Department shall increase
 7    or  decrease the amounts by an amount necessary to offset any
 8    miscalculation of previous disbursements.  The offset  amount
 9    shall be the amount erroneously disbursed within the previous
10    6 months from the time a miscalculation is discovered.
11        (h)  This  Section  may  be  cited as the "Special County
12    Occupation Tax For Public Safety Law".
13        (i)  For  purposes  of  this  Section,  "public   safety"
14    includes  but  is  not  limited  to  fire  fighting,  police,
15    medical, ambulance, or other emergency services.
16    (Source:  P.A.  89-107,  eff.  1-1-96;  89-718,  eff. 3-7-97;
17    90-190, eff. 7-24-97;  90-267,  eff.  7-30-97;  90-552,  eff.
18    12-12-97;   90-562,  eff.  12-16-97;  90-655,  eff.  7-30-98;
19    90-689, eff. 7-31-98.)

20        (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
21        Sec. 5-1007.  Home Rule  County  Service  Occupation  Tax
22    Law.  The  corporate  authorities  of  a home rule county may
23    impose a tax upon all persons engaged, in such county, in the
24    business of making sales of service at the same rate  of  tax
25    imposed  pursuant  to  Section 5-1006 of the selling price of
26    all tangible personal property transferred by such servicemen
27    either in the form of tangible personal property  or  in  the
28    form  of  real estate as an incident to a sale of service. If
29    imposed, such tax shall only be imposed in  1/4%  increments.
30    On  and  after September 1, 1991, this additional tax may not
31    be imposed on the sales of food for human  consumption  which
32    is  to  be  consumed off the premises where it is sold (other
33    than alcoholic beverages, soft drinks and food which has been
 
                            -55-              LRB9203211SMdvA
 1    prepared for  immediate  consumption)  and  prescription  and
 2    nonprescription  medicines,  drugs,  medical  appliances  and
 3    insulin,  urine  testing materials, syringes and needles used
 4    by diabetics. The tax imposed by a home rule county  pursuant
 5    to  this Section and all civil penalties that may be assessed
 6    as an incident thereof shall be collected and enforced by the
 7    State Department of Revenue. The certificate of  registration
 8    which  is  issued  by  the Department to a retailer under the
 9    Retailers' Occupation Tax Act or under the Service Occupation
10    Tax Act shall permit such registrant to engage in a  business
11    which  is  taxable  under any ordinance or resolution enacted
12    pursuant to this Section without registering separately  with
13    the  Department  under  such ordinance or resolution or under
14    this Section.   The  Department  shall  have  full  power  to
15    administer and enforce this Section; to collect all taxes and
16    penalties due hereunder; to dispose of taxes and penalties so
17    collected   in   the  manner  hereinafter  provided;  and  to
18    determine all rights to credit memoranda arising  on  account
19    of the erroneous payment of tax or penalty hereunder.  In the
20    administration  of,  and  compliance  with,  this Section the
21    Department and persons who are subject to this Section  shall
22    have  the  same  rights,  remedies,  privileges,  immunities,
23    powers  and  duties,  and  be subject to the same conditions,
24    restrictions,  limitations,  penalties  and  definitions   of
25    terms,  and  employ  the  same  modes  of  procedure,  as are
26    prescribed in Sections  1a-1,  2,  2a,  3  through  3-50  (in
27    respect  to  all provisions therein other than the State rate
28    of tax), 4 (except that the reference to the State  shall  be
29    to  the taxing county), 5, 7, 8 (except that the jurisdiction
30    to which the tax shall be a debt to the extent  indicated  in
31    that  Section  8 shall be the taxing county), 9 (except as to
32    the disposition of taxes and penalties collected, and  except
33    that  the returned merchandise credit for this county tax may
34    not be taken against any State tax), 10, 11, 12  (except  the
 
                            -56-              LRB9203211SMdvA
 1    reference  therein to Section 2b of the Retailers' Occupation
 2    Tax Act), 13 (except that any reference to  the  State  shall
 3    mean  the  taxing county), the first paragraph of Section 15,
 4    16, 17, 18, 19 and 20 of the Service Occupation Tax  Act  and
 5    Section 3-7 of the Uniform Penalty and Interest Act, as fully
 6    as if those provisions were set forth herein.
 7        No  tax  may be imposed by a home rule county pursuant to
 8    this Section unless such county also imposes  a  tax  at  the
 9    same rate pursuant to Section 5-1006.
10        Beginning  in  2001, propane and home heating oil sold to
11    residential customers on or  after  December  1  and  through
12    March 31 of each year are exempt from the tax imposed by this
13    Section or under the authority of any home rule power.
14        Beginning in 2002, for bills issued on or after January 1
15    and  through  April  30  each  year, natural gas distributed,
16    supplied, furnished, or  sold  to  residential  customers  is
17    exempt  from  the  tax  imposed  by this Section or under the
18    authority of any home rule power.
19        This amendatory Act of the 92nd  General  Assembly  is  a
20    denial  and  limitation  of  home  rule  powers  to tax under
21    subsection (g) of Section 6 of Article VII  of  the  Illinois
22    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
 
                            -57-              LRB9203211SMdvA
 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
 
                            -58-              LRB9203211SMdvA
 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
 
                            -59-              LRB9203211SMdvA
 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        Section  45.   The  Illinois Municipal Code is amended by
11    changing  Sections  8-11-1,  8-11-1.1,  8-11-1.6,   8-11-1.7,
12    8-11-2, 8-11-5, and 8-11-6 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
 
                            -60-              LRB9203211SMdvA
 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        Beginning in 2001, propane and home heating oil  sold  to
32    residential  customers  on  or  after  December 1 and through
33    March 31 of each year are exempt from the tax imposed by this
34    Section or under the authority of any home rule power.
 
                            -61-              LRB9203211SMdvA
 1        Beginning in 2002, for bills issued on or after January 1
 2    and through April 30  each  year,  natural  gas  distributed,
 3    supplied,  furnished,  or  sold  to  residential customers is
 4    exempt from the tax imposed by  this  Section  or  under  the
 5    authority of any home rule power.
 6        This  amendatory  Act  of  the 92nd General Assembly is a
 7    denial and limitation  of  home  rule  powers  to  tax  under
 8    subsection  (g)  of  Section 6 of Article VII of the Illinois
 9    Constitution.
10        Persons subject to any tax imposed  under  the  authority
11    granted  in  this  Section may reimburse themselves for their
12    seller's tax liability hereunder by separately  stating  that
13    tax  as  an  additional charge, which charge may be stated in
14    combination, in a single amount, with State tax which sellers
15    are required to collect under the Use Tax  Act,  pursuant  to
16    such bracket schedules as the Department may prescribe.
17        Whenever  the  Department determines that a refund should
18    be made under this Section to a claimant instead of issuing a
19    credit memorandum, the  Department  shall  notify  the  State
20    Comptroller,  who  shall  cause the order to be drawn for the
21    amount specified and to the person named in the  notification
22    from  the  Department.  The refund shall be paid by the State
23    Treasurer  out  of  the  home   rule   municipal   retailers'
24    occupation tax fund.
25        The  Department  shall  immediately pay over to the State
26    Treasurer, ex officio, as trustee, all  taxes  and  penalties
27    collected  hereunder.   On  or  before  the  25th day of each
28    calendar month, the Department shall prepare and  certify  to
29    the  Comptroller  the disbursement of stated sums of money to
30    named municipalities, the municipalities  to  be  those  from
31    which retailers have paid taxes or penalties hereunder to the
32    Department  during  the  second preceding calendar month. The
33    amount to be paid to each municipality shall  be  the  amount
34    (not  including  credit memoranda) collected hereunder during
 
                            -62-              LRB9203211SMdvA
 1    the second preceding calendar month by the Department plus an
 2    amount the Department determines is necessary to  offset  any
 3    amounts  that  were  erroneously  paid  to a different taxing
 4    body, and not including an amount  equal  to  the  amount  of
 5    refunds  made  during  the second preceding calendar month by
 6    the Department  on  behalf  of  such  municipality,  and  not
 7    including  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    municipality. Within 10 days after receipt by the Comptroller
11    of  the  disbursement  certification  to  the  municipalities
12    provided  for  in this Section to be given to the Comptroller
13    by the Department, the Comptroller shall cause the orders  to
14    be  drawn  for  the respective amounts in accordance with the
15    directions contained in the certification.
16        In addition to the disbursement required by the preceding
17    paragraph  and  in  order  to  mitigate  delays   caused   by
18    distribution  procedures,  an allocation shall, if requested,
19    be made within  10  days  after  January  14,  1991,  and  in
20    November   of   1991   and  each  year  thereafter,  to  each
21    municipality that received  more  than  $500,000  during  the
22    preceding  fiscal  year,  (July  1  through  June 30) whether
23    collected by the municipality or disbursed by the  Department
24    as required by this Section. Within 10 days after January 14,
25    1991,   participating   municipalities   shall   notify   the
26    Department  in  writing  of  their intent to participate.  In
27    addition,  for  the   initial   distribution,   participating
28    municipalities  shall  certify  to the Department the amounts
29    collected by the municipality for each month under  its  home
30    rule  occupation and service occupation tax during the period
31    July 1, 1989 through June 30, 1990.  The allocation within 10
32    days after January 14, 1991, shall be in an amount  equal  to
33    the  monthly average of these amounts, excluding the 2 months
34    of highest receipts. The monthly average for  the  period  of
 
                            -63-              LRB9203211SMdvA
 1    July  1,  1990  through  June  30, 1991 will be determined as
 2    follows:  the amounts collected by the municipality under its
 3    home rule occupation and service occupation  tax  during  the
 4    period  of  July  1,  1990  through  September 30, 1990, plus
 5    amounts  collected  by  the  Department  and  paid  to   such
 6    municipality through June 30, 1991, excluding the 2 months of
 7    highest  receipts.   The  monthly average for each subsequent
 8    period of July 1 through June 30 shall be an amount equal  to
 9    the monthly distribution made to each such municipality under
10    the  preceding  paragraph during this period, excluding the 2
11    months  of  highest  receipts.   The  distribution  made   in
12    November  1991  and each year thereafter under this paragraph
13    and the preceding paragraph shall be reduced  by  the  amount
14    allocated and disbursed under this paragraph in the preceding
15    period  of  July  1  through  June  30.  The Department shall
16    prepare and certify to the Comptroller for  disbursement  the
17    allocations made in accordance with this paragraph.
18        For  the  purpose  of  determining the local governmental
19    unit whose tax is applicable, a retail sale by a producer  of
20    coal  or  other mineral mined in Illinois is a sale at retail
21    at the place  where  the  coal  or  other  mineral  mined  in
22    Illinois  is  extracted  from the earth.  This paragraph does
23    not apply to coal or other mineral when it  is  delivered  or
24    shipped  by  the  seller  to the purchaser at a point outside
25    Illinois so that the sale is exempt under the  United  States
26    Constitution as a sale in interstate or foreign commerce.
27        Nothing in this Section shall be construed to authorize a
28    municipality  to  impose a tax upon the privilege of engaging
29    in any business which under the Constitution  of  the  United
30    States may not be made the subject of taxation by this State.
31        An  ordinance  or  resolution imposing or discontinuing a
32    tax hereunder or effecting a change in the rate thereof shall
33    be adopted and  a  certified  copy  thereof  filed  with  the
34    Department  on or before the first day of June, whereupon the
 
                            -64-              LRB9203211SMdvA
 1    Department shall  proceed  to  administer  and  enforce  this
 2    Section  as  of the first day of September next following the
 3    adoption and filing. Beginning January 1, 1992, an  ordinance
 4    or  resolution imposing or discontinuing the tax hereunder or
 5    effecting a change in the rate thereof shall be adopted and a
 6    certified copy thereof filed with the Department on or before
 7    the first day of July, whereupon the Department shall proceed
 8    to administer and enforce this Section as of the first day of
 9    October next following such adoption  and  filing.  Beginning
10    January  1,  1993,  an  ordinance  or  resolution imposing or
11    discontinuing the tax hereunder or effecting a change in  the
12    rate  thereof  shall  be adopted and a certified copy thereof
13    filed with the Department on  or  before  the  first  day  of
14    October, whereupon the Department shall proceed to administer
15    and  enforce this Section as of the first day of January next
16    following the adoption and filing.  However,  a  municipality
17    located  in a county with a population in excess of 3,000,000
18    that elected to become  a  home  rule  unit  at  the  general
19    primary election in 1994 may adopt an ordinance or resolution
20    imposing the tax under this Section and file a certified copy
21    of  the  ordinance  or  resolution  with the Department on or
22    before July 1, 1994. The Department  shall  then  proceed  to
23    administer  and  enforce  this Section as of October 1, 1994.
24    Beginning April 1, 1998, an ordinance or resolution  imposing
25    or  discontinuing  the tax hereunder or effecting a change in
26    the rate thereof shall either (i) be adopted and a  certified
27    copy thereof filed with the Department on or before the first
28    day  of  April,  whereupon  the  Department  shall proceed to
29    administer and enforce this Section as of the  first  day  of
30    July  next  following  the  adoption  and  filing; or (ii) be
31    adopted  and  a  certified  copy  thereof  filed   with   the
32    Department  on  or before the first day of October, whereupon
33    the Department shall proceed to administer and  enforce  this
34    Section  as  of  the  first day of January next following the
 
                            -65-              LRB9203211SMdvA
 1    adoption and filing.
 2        When certifying the amount of a monthly disbursement to a
 3    municipality  under  this  Section,  the   Department   shall
 4    increase  or  decrease  the  amount by an amount necessary to
 5    offset  any  misallocation  of  previous  disbursements.  The
 6    offset amount  shall  be  the  amount  erroneously  disbursed
 7    within the previous 6 months from the time a misallocation is
 8    discovered.
 9        Any   unobligated  balance  remaining  in  the  Municipal
10    Retailers' Occupation Tax Fund on December  31,  1989,  which
11    fund was abolished by Public Act 85-1135, and all receipts of
12    municipal  tax  as  a  result  of audits of liability periods
13    prior to January 1,  1990,  shall  be  paid  into  the  Local
14    Government  Tax  Fund  for  distribution  as provided by this
15    Section prior to the enactment of  Public  Act  85-1135.  All
16    receipts  of  municipal  tax as a result of an assessment not
17    arising from an audit, for liability periods prior to January
18    1, 1990, shall be paid into the Local Government Tax Fund for
19    distribution before July 1, 1990, as provided by this Section
20    prior to the enactment of Public  Act  85-1135;  and  on  and
21    after July 1, 1990, all such receipts shall be distributed as
22    provided in Section 6z-18 of the State Finance Act.
23        As  used  in this Section, "municipal" and "municipality"
24    means a city, village  or  incorporated  town,  including  an
25    incorporated town that has superseded a civil township.
26        This  Section shall be known and may be cited as the Home
27    Rule Municipal Retailers' Occupation Tax Act.
28    (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)

29        (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
30        Sec. 8-11-1.1.  Non-home  rule  municipalities;  use  and
31    occupation imposition of taxes.
32        (a)  The   corporate   authorities  of  a  non-home  rule
33    municipality may,  upon  approval  of  the  electors  of  the
 
                            -66-              LRB9203211SMdvA
 1    municipality  pursuant  to  subsection  (b)  of this Section,
 2    impose  by  ordinance  or  resolution  the  1/2  of  1%   tax
 3    authorized  in  Sections  8-11-1.3,  8-11-1.4 and 8-11-1.5 of
 4    this Act.
 5        (b)  The corporate authorities of the municipality may by
 6    ordinance or  resolution  call  for  the  submission  to  the
 7    electors  of  the  municipality   the question of whether the
 8    municipality shall impose such tax.  Such question  shall  be
 9    certified by the municipal clerk to the election authority in
10    accordance  with  Section 28-5 of the Election Code and shall
11    be in a form in accordance with Section 16-7 of the  Election
12    Code.
13        If  a majority of the electors in the municipality voting
14    upon the question vote in the affirmative, such tax shall  be
15    imposed.
16        An  ordinance  or  resolution  imposing the 1/2 of 1% tax
17    hereunder or discontinuing the same shall be  adopted  and  a
18    certified  copy  thereof,  together with a certification that
19    the ordinance or resolution received referendum  approval  in
20    the  case  of  the  imposition  of  such  tax, filed with the
21    Department of Revenue, on or before the first  day  of  June,
22    whereupon  the  Department  shall  proceed  to administer and
23    enforce the additional tax or to discontinue the tax, as  the
24    case  may be, as of the first day of September next following
25    such adoption and  filing.  Beginning  January  1,  1992,  an
26    ordinance  or  resolution  imposing  or discontinuing the tax
27    hereunder shall be adopted and a certified copy thereof filed
28    with the Department on or  before  the  first  day  of  July,
29    whereupon  the  Department  shall  proceed  to administer and
30    enforce this Section as of the  first  day  of  October  next
31    following  such  adoption  and  filing.  Beginning January 1,
32    1993, an ordinance or resolution  imposing  or  discontinuing
33    the  tax  hereunder  shall  be  adopted  and a certified copy
34    thereof filed with the Department on or before the first  day
 
                            -67-              LRB9203211SMdvA
 1    of   October,  whereupon  the  Department  shall  proceed  to
 2    administer and enforce this Section as of the  first  day  of
 3    January  next  following such adoption and filing. A non-home
 4    rule municipality may file a certified copy of  an  ordinance
 5    or  resolution,  with  a  certification that the ordinance or
 6    resolution received referendum approval in the  case  of  the
 7    imposition  of  the  tax,  with the Department of Revenue, as
 8    required under this Section, only after October 2, 2000.
 9        (c)  Beginning in 2001, propane and home heating oil sold
10    to residential customers on or after December 1  and  through
11    March  31  of  each  year  are exempt from the tax imposed by
12    Sections 8-11-1.3, 8-11-1.4, and 8-11-1.5 of this Code.
13        Beginning in 2002, for bills issued on or after January 1
14    and through April 30  each  year,  natural  gas  distributed,
15    supplied,  furnished,  or  sold  to  residential customers is
16    exempt from the tax imposed by Sections  8-11-1.3,  8-11-1.4,
17    and 8-11-1.5.
18    (Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.)

19        (65 ILCS 5/8-11-1.6)
20        Sec.   8-11-1.6.  Non-home   rule   municipal   retailers
21    occupation tax; municipalities between 20,000 and 25,000. The
22    corporate  authorities of a non-home rule municipality with a
23    population of more than 20,000 but less than 25,000 that has,
24    prior to January 1, 1987, established a Redevelopment Project
25    Area that has been certified as a State  Sales  Tax  Boundary
26    and  has  issued  bonds or otherwise incurred indebtedness to
27    pay for costs in excess of $5,000,000, which  is  secured  in
28    part  by  a tax increment allocation fund, in accordance with
29    the provisions of Division  11-74.4  of  this  Code  may,  by
30    passage  of  an  ordinance,  impose  a  tax  upon all persons
31    engaged  in  the  business  of  selling   tangible   personal
32    property, other than on an item of tangible personal property
33    that  is  titled  and registered by an agency of this State's
 
                            -68-              LRB9203211SMdvA
 1    Government, at retail in the municipality. This tax  may  not
 2    be imposed on the sales of food for human consumption that is
 3    to  be consumed off the premises where it is sold (other than
 4    alcoholic beverages, soft drinks,  and  food  that  has  been
 5    prepared  for  immediate  consumption)  and  prescription and
 6    nonprescription  medicines,  drugs,  medical  appliances  and
 7    insulin, urine testing materials, syringes, and needles  used
 8    by  diabetics.  If  imposed, the tax shall only be imposed in
 9    .25% increments of the gross receipts from such sales made in
10    the course of business.  Any tax imposed  by  a  municipality
11    under  this Sec. and all civil penalties that may be assessed
12    as an incident thereof shall be collected and enforced by the
13    State Department of Revenue.  An  ordinance  imposing  a  tax
14    hereunder  or effecting a change in the rate thereof shall be
15    adopted  and  a  certified  copy  thereof  filed   with   the
16    Department  on  or before the first day of October, whereupon
17    the Department shall proceed to administer and  enforce  this
18    Section  as  of  the first day of January next following such
19    adoption and filing.  The certificate of registration that is
20    issued by the Department to a retailer under  the  Retailers'
21    Occupation  Tax  Act shall permit the retailer to engage in a
22    business that is taxable under any  ordinance  or  resolution
23    enacted  under  this  Section  without registering separately
24    with the Department under  the  ordinance  or  resolution  or
25    under  this  Section. The Department shall have full power to
26    administer and enforce this Section, to collect all taxes and
27    penalties due hereunder, to dispose of taxes and penalties so
28    collected  in  the  manner  hereinafter  provided,   and   to
29    determine  all rights to credit memoranda, arising on account
30    of the erroneous payment of tax or penalty hereunder.  In the
31    administration of, and  compliance  with  this  Section,  the
32    Department  and persons who are subject to this Section shall
33    have  the  same  rights,  remedies,  privileges,  immunities,
34    powers, and duties, and be subject to  the  same  conditions,
 
                            -69-              LRB9203211SMdvA
 1    restrictions,  limitations,  penalties,  and  definitions  of
 2    terms,  and  employ  the  same  modes  of  procedure,  as are
 3    prescribed in Sections 1, 1a, 1a-1, 1d, 1e,  1f,  1i,  1j,  2
 4    through 2-65 (in respect to all provisions therein other than
 5    the  State  rate of tax), 2c, 3 (except as to the disposition
 6    of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d,  5e,
 7    5f,  5g,  5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
 8    12 and 13 of the Retailers' Occupation Tax  Act  and  Section
 9    3-7  of  the  Uniform Penalty and Interest Act as fully as if
10    those provisions were set forth herein.
11        A tax may not be imposed by  a  municipality  under  this
12    Section  unless  the  municipality  also imposes a tax at the
13    same rate under Section 8-11-1.7 of this Act.
14        Beginning in 2001, propane and home heating oil  sold  to
15    residential  customers  on  or  after  December 1 and through
16    March 31 of each year are exempt from the tax imposed by this
17    Section.
18        Beginning in 2002, for bills issued on or after January 1
19    and through April 30  each  year,  natural  gas  distributed,
20    supplied,  furnished,  or  sold  to  residential customers is
21    exempt from the tax imposed by this Section.
22        Persons subject to any tax imposed  under  the  authority
23    granted  in  this Section, may reimburse themselves for their
24    seller's tax liability hereunder by  separately  stating  the
25    tax  as  an  additional charge, which charge may be stated in
26    combination, in a single amount, with State tax which sellers
27    are required to collect under the Use Tax  Act,  pursuant  to
28    such bracket schedules as the Department may prescribe.
29        Whenever  the  Department determines that a refund should
30    be made under this Section to a claimant, instead of  issuing
31    a  credit  memorandum,  the Department shall notify the State
32    Comptroller, who shall cause the order to be  drawn  for  the
33    amount specified, and to the person named in the notification
34    from  the  Department.  The refund shall be paid by the State
 
                            -70-              LRB9203211SMdvA
 1    Treasurer out  of  the  Non-Home  Rule  Municipal  Retailers'
 2    Occupation Tax Fund, which is hereby created.
 3        The  Department  shall  forthwith  pay  over to the State
 4    Treasurer, ex officio, as trustee, all  taxes  and  penalties
 5    collected  hereunder.   On  or  before  the  25th day of each
 6    calendar month, the Department shall prepare and  certify  to
 7    the  Comptroller  the disbursement of stated sums of money to
 8    named municipalities, the municipalities  to  be  those  from
 9    which retailers have paid taxes or penalties hereunder to the
10    Department  during  the second preceding calendar month.  The
11    amount to be paid to each municipality shall  be  the  amount
12    (not  including  credit memoranda) collected hereunder during
13    the second preceding calendar month by the Department plus an
14    amount the Department determines is necessary to  offset  any
15    amounts  that  were  erroneously  paid  to a different taxing
16    body, and not including an amount  equal  to  the  amount  of
17    refunds  made  during  the second preceding calendar month by
18    the  Department  on  behalf  of  the  municipality,  and  not
19    including  any  amount  that  the  Department  determines  is
20    necessary to offset  any  amounts  that  were  payable  to  a
21    different  taxing  body  but  were  erroneously  paid  to the
22    municipality.   Within  10  days   after   receipt   by   the
23    Comptroller   of   the   disbursement  certification  to  the
24    municipalities provided for in this Section to  be  given  to
25    the  Comptroller  by  the  Department,  the Comptroller shall
26    cause the orders to be drawn for the  respective  amounts  in
27    accordance    with    the   directions   contained   in   the
28    certification.
29        For the purpose of  determining  the  local  governmental
30    unit  whose tax is applicable, a retail sale by a producer of
31    coal or other mineral mined in Illinois is a sale  at  retail
32    at  the  place  where  the  coal  or  other  mineral mined in
33    Illinois is extracted from the earth.   This  paragraph  does
34    not  apply  to  coal or other mineral when it is delivered or
 
                            -71-              LRB9203211SMdvA
 1    shipped by the seller to the purchaser  at  a  point  outside
 2    Illinois  so  that  the  sale  is  exempt  under  the federal
 3    Constitution as a sale in interstate or foreign commerce.
 4        Nothing in this Section shall be construed to authorize a
 5    municipality 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        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        As used in this Section, "municipal"  and  "municipality"
16    means  a  city,  village,  or incorporated town, including an
17    incorporated town that has superseded a civil township.
18    (Source: P.A. 88-334; 89-399, eff. 8-20-95.)

19        (65 ILCS 5/8-11-1.7)
20        Sec. 8-11-1.7. Non-home rule municipal service occupation
21    tax; municipalities between 20,000 and 25,000. The  corporate
22    authorities of a non-home rule municipality with a population
23    of more than 20,000 but less than 25,000 as determined by the
24    last preceding decennial census that has, prior to January 1,
25    1987,  established a Redevelopment Project Area that has been
26    certified as a State Sales Tax Boundary and has issued  bonds
27    or otherwise incurred indebtedness to pay for costs in excess
28    of  $5,000,000,  which  is secured in part by a tax increment
29    allocation  fund,  in  accordance  with  the  provisions   of
30    Division   11-74.7  of  this  Code  may,  by  passage  of  an
31    ordinance, impose a tax  upon  all  persons  engaged  in  the
32    municipality  in the business of making sales of service.  If
33    imposed, the tax shall only be imposed in .25% increments  of
 
                            -72-              LRB9203211SMdvA
 1    the   selling   price   of  all  tangible  personal  property
 2    transferred by such servicemen either in the form of tangible
 3    personal property or  in  the  form  of  real  estate  as  an
 4    incident to a sale of service. This tax may not be imposed on
 5    the  sales  of  food  for  human  consumption  that  is to be
 6    consumed off the  premises  where  it  is  sold  (other  than
 7    alcoholic  beverages,  soft  drinks,  and  food that has been
 8    prepared for  immediate  consumption)  and  prescription  and
 9    nonprescription  medicines,  drugs,  medical  appliances  and
10    insulin,  urine testing materials, syringes, and needles used
11    by diabetics. The tax imposed by a  municipality  under  this
12    Sec.  and  all  civil  penalties  that  may be assessed as an
13    incident thereof shall be collected and enforced by the State
14    Department of Revenue.  An ordinance imposing a tax hereunder
15    or effecting a change in the rate thereof  shall  be  adopted
16    and  a certified copy thereof filed with the Department on or
17    before the first day of  October,  whereupon  the  Department
18    shall  proceed  to  administer and enforce this Section as of
19    the first day of January next  following  such  adoption  and
20    filing.   The  certificate  of registration that is issued by
21    the Department to a retailer under the Retailers'  Occupation
22    Tax  Act or under the Service Occupation Tax Act shall permit
23    the registrant to engage in a business that is taxable  under
24    any  ordinance  or  resolution  enacted  under  this  Section
25    without  registering separately with the Department under the
26    ordinance or resolution or under this Section. The Department
27    shall have full power to administer and enforce this Section,
28    to  collect all taxes and penalties due hereunder, to dispose
29    of taxes and penalties so collected in a  manner  hereinafter
30    provided,  and  to  determine  all rights to credit memoranda
31    arising on account of the erroneous payment of tax or penalty
32    hereunder. In the administration of and compliance with  this
33    Section,  the  Department and persons who are subject to this
34    Section shall have the  same  rights,  remedies,  privileges,
 
                            -73-              LRB9203211SMdvA
 1    immunities,  powers,  and  duties, and be subject to the same
 2    conditions,   restrictions,   limitations,   penalties    and
 3    definitions of terms, and employ the same modes of procedure,
 4    as are 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 Sections 15, 16, 17,
17    18, 19, and 20 of the Service Occupation Tax Act and  Section
18    3-7  of  the Uniform Penalty and Interest Act, as fully as if
19    those provisions were set forth herein.
20        A tax may not be imposed by  a  municipality  under  this
21    Section  unless  the  municipality  also imposes a tax at the
22    same rate under Section 8-11-1.6 of this Act.
23        Beginning in 2001, propane and home heating oil  sold  to
24    residential  customers  on  or  after  December 1 and through
25    March 31 of each year are exempt from the tax imposed by this
26    Section.
27        Beginning in 2002, for bills issued on or after January 1
28    and through April 30  each  year,  natural  gas  distributed,
29    supplied,  furnished,  or  sold  to  residential customers is
30    exempt from the tax imposed by this Section.
31        Person subject to any tax  imposed  under  the  authority
32    granted  in  this  Section may reimburse themselves for their
33    servicemen's tax liability hereunder  by  separately  stating
34    the  tax  as an additional charge, which charge may be stated
 
                            -74-              LRB9203211SMdvA
 1    in combination, in a  single  amount,  with  State  tax  that
 2    servicemen  are  authorized  to collect under the Service Use
 3    Tax Act, under such bracket schedules as the  Department  may
 4    prescribe.
 5        Whenever  the  Department determines that a refund should
 6    be made under this Section to a claimant instead  of  issuing
 7    credit  memorandum,  the  Department  shall  notify the State
 8    Comptroller, who shall cause the order to be  drawn  for  the
 9    amount   specified,   and   to  the  person  named,  in  such
10    notification from the Department. The refund shall be paid by
11    the State  Treasurer  out  of  the  Non-Home  Rule  Municipal
12    Retailers' Occupation Tax Fund.
13        The  Department  shall  forthwith  pay  over to the State
14    Treasurer, ex officio, as trustee, all  taxes  and  penalties
15    collected  hereunder.  On  or  before  the  25th  day of each
16    calendar month, the Department shall prepare and  certify  to
17    the  Comptroller  the disbursement of stated sums of money to
18    named municipalities, the municipalities  to  be  those  from
19    which  suppliers  and servicemen have paid taxes or penalties
20    hereunder to  the  Department  during  the  second  preceding
21    calendar  month.  The  amount to be paid to each municipality
22    shall  be  the  amount  (not  including   credit   memoranda)
23    collected  hereunder  during  the  second  preceding calendar
24    month by the Department, and not including an amount equal to
25    the amount  of  refunds  made  during  the  second  preceding
26    calendar   month   by   the  Department  on  behalf  of  such
27    municipality. Within 10 days after receipt by the Comptroller
28    of the disbursement certification to the  municipalities  and
29    the  General Revenue Fund, provided for in this Section to be
30    given to the Comptroller by the Department,  the  Comptroller
31    shall cause the orders to be drawn for the respective amounts
32    in   accordance   with   the   directions  contained  in  the
33    certification.
34        When certifying the amount of a monthly disbursement to a
 
                            -75-              LRB9203211SMdvA
 1    municipality  under  this  Section,  the   Department   shall
 2    increase  or  decrease  the  amount by an amount necessary to
 3    offset  any  misallocation  of  previous  disbursements.  The
 4    offset amount  shall  be  the  amount  erroneously  disbursed
 5    within the previous 6 months from the time a misallocation is
 6    discovered.
 7        Nothing in this Section shall be construed to authorize a
 8    municipality  to  impose a tax upon the privilege of engaging
 9    in any business which under the constitution  of  the  United
10    States may not be made the subject of taxation by this State.
11    (Source: P.A. 88-334; 89-399, eff. 8-20-95.)

12        (65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
13        Sec.  8-11-2.  Municipal  occupation and privilege taxes.
14    The corporate authorities of any municipality may tax any  or
15    all of the following occupations or privileges:
16             1.  Persons  engaged in the business of transmitting
17        messages by means of electricity or radio magnetic waves,
18        or fiber optics, at a rate not to exceed 5% of the  gross
19        receipts   from  that  business  originating  within  the
20        corporate limits of the municipality.  Beginning  January
21        1, 2001, prepaid telephone calling arrangements shall not
22        be  subject  to  the tax imposed under this Section.  For
23        purposes of  this  Section,  "prepaid  telephone  calling
24        arrangements"  means that term as defined in Section 2-27
25        of the Retailers' Occupation Tax Act.
26             2.  Persons engaged in the business of distributing,
27        supplying,  furnishing,  or  selling  gas  for   use   or
28        consumption within the corporate limits of a municipality
29        of  500,000 or fewer population, and not for resale, at a
30        rate not to exceed 5% of the gross receipts therefrom. No
31        tax is imposed under this subparagraph  2  or  under  the
32        authority  of  any  home  rule  power on gas distributed,
33        supplied, furnished, or sold  to  residential  customers,
 
                            -76-              LRB9203211SMdvA
 1        for  bills issued on or after January 1 and through April
 2        30 each year. This amendatory Act  of  the  92nd  General
 3        Assembly  is  a denial and limitation of home rule powers
 4        to tax under subsection (g) of Section 6 of  Article  VII
 5        of the Illinois Constitution.
 6             2a.  Persons    engaged    in    the   business   of
 7        distributing, supplying, furnishing, or selling  gas  for
 8        use  or  consumption  within  the  corporate  limits of a
 9        municipality of over  500,000  population,  and  not  for
10        resale,  at a rate not to exceed 8% of the gross receipts
11        therefrom.  If imposed, this tax shall be paid in monthly
12        payments. No tax is imposed under this subparagraph 2a or
13        under the  authority  of  any  home  rule  power  on  gas
14        distributed,  supplied, furnished, or sold to residential
15        customers, for bills issued on or  after  January  1  and
16        through  April  30  each year. This amendatory Act of the
17        92nd General Assembly is a denial and limitation of  home
18        rule  powers  to tax under subsection (g) of Section 6 of
19        Article VII of the Illinois Constitution.
20             3.  The privilege of using or consuming  electricity
21        acquired  in  a  purchase  at retail and used or consumed
22        within the corporate limits of the municipality at  rates
23        not  to exceed the following maximum rates, calculated on
24        a monthly basis for each purchaser:
25             (i)  For the  first  2,000  kilowatt-hours  used  or
26        consumed in a month; 0.61 cents per kilowatt-hour;
27             (ii)  For  the  next  48,000  kilowatt-hours used or
28        consumed in a month; 0.40 cents per kilowatt-hour;
29             (iii)  For the next 50,000  kilowatt-hours  used  or
30        consumed in a month; 0.36 cents per kilowatt-hour;
31             (iv)  For  the  next  400,000 kilowatt-hours used or
32        consumed in a month; 0.35 cents per kilowatt-hour;
33             (v)  For the next  500,000  kilowatt-hours  used  or
34        consumed in a month; 0.34 cents per kilowatt-hour;
 
                            -77-              LRB9203211SMdvA
 1             (vi)  For  the next 2,000,000 kilowatt-hours used or
 2        consumed in a month; 0.32 cents per kilowatt-hour;
 3             (vii)  For the next 2,000,000 kilowatt-hours used or
 4        consumed in a month; 0.315 cents per kilowatt-hour;
 5             (viii)  For the next 5,000,000  kilowatt-hours  used
 6        or consumed in a month; 0.31 cents per kilowatt-hour;
 7             (ix)  For the next 10,000,000 kilowatt-hours used or
 8        consumed in a month; 0.305 cents per kilowatt-hour; and
 9             (x)  For  all electricity used or consumed in excess
10        of 20,000,000 kilowatt-hours in a month, 0.30  cents  per
11        kilowatt-hour.
12             If  a municipality imposes a tax at rates lower than
13        either the maximum rates specified in this Section or the
14        alternative maximum rates  promulgated  by  the  Illinois
15        Commerce  Commission,  as  provided  below, the tax rates
16        shall be imposed upon the kilowatt  hour  categories  set
17        forth  above  with  the same proportional relationship as
18        that   which   exists   among   such    maximum    rates.
19        Notwithstanding  the  foregoing, until December 31, 2008,
20        no municipality shall establish rates that are in  excess
21        of  rates  reasonably calculated to produce revenues that
22        equal the maximum total revenues such municipality  could
23        have   received   under   the   tax  authorized  by  this
24        subparagraph in the last full calendar year prior to  the
25        effective  date  of  Section 65 of this amendatory Act of
26        1997; provided that this shall not be a limitation on the
27        amount  of  tax  revenues  actually  collected  by   such
28        municipality.
29             Upon  the  request of the corporate authorities of a
30        municipality, the  Illinois  Commerce  Commission  shall,
31        within  90 days after receipt of such request, promulgate
32        alternative  rates  for  each  of   these   kilowatt-hour
33        categories  that  will  reflect, as closely as reasonably
34        practical for that municipality, the distribution of  the
 
                            -78-              LRB9203211SMdvA
 1        tax  among classes of purchasers as if the tax were based
 2        on  a  uniform  percentage  of  the  purchase  price   of
 3        electricity.    A   municipality   that  has  adopted  an
 4        ordinance imposing a tax pursuant to subparagraph 3 as it
 5        existed prior to the effective date of Section 65 of this
 6        amendatory Act of 1997 may, rather than imposing the  tax
 7        permitted  by  this  amendatory  Act of 1997, continue to
 8        impose the tax pursuant to that ordinance with respect to
 9        gross  receipts  received  from   residential   customers
10        through July 31, 1999, and with respect to gross receipts
11        from  any  non-residential  customer until the first bill
12        issued  to  such  customer  for  delivery   services   in
13        accordance  with  Section  16-104 of the Public Utilities
14        Act but in no case later than the  last  bill  issued  to
15        such  customer  before  December  31,  2000. No ordinance
16        imposing the tax permitted by this amendatory Act of 1997
17        shall be applicable to any non-residential customer until
18        the first bill  issued  to  such  customer  for  delivery
19        services  in accordance with Section 16-104 of the Public
20        Utilities Act but in no case later  than  the  last  bill
21        issued  to  such non-residential customer before December
22        31, 2000.
23             4.  Persons engaged in the business of distributing,
24        supplying,  furnishing,  or  selling  water  for  use  or
25        consumption  within   the   corporate   limits   of   the
26        municipality, and not for resale, at a rate not to exceed
27        5% of the gross receipts therefrom.
28        None  of  the  taxes  authorized  by  this Section may be
29    imposed  with  respect  to  any  transaction  in   interstate
30    commerce  or otherwise to the extent to which the business or
31    privilege may not, under the constitution and statutes of the
32    United States, be made the subject of taxation by this  State
33    or  any political sub-division thereof; nor shall any persons
34    engaged  in  the   business   of   distributing,   supplying,
 
                            -79-              LRB9203211SMdvA
 1    furnishing,   selling   or   transmitting   gas,   water,  or
 2    electricity, or  engaged  in  the  business  of  transmitting
 3    messages,  or  using  or  consuming electricity acquired in a
 4    purchase  at  retail,  be  subject  to  taxation  under   the
 5    provisions of this Section for those transactions that are or
 6    may  become  subject  to taxation under the provisions of the
 7    "Municipal  Retailers'  Occupation  Tax  Act"  authorized  by
 8    Section 8-11-1; nor shall any tax authorized by this  Section
 9    be  imposed  upon  any person engaged in a business or on any
10    privilege unless the tax is imposed in like manner and at the
11    same rate upon all persons engaged in businesses of the  same
12    class  in  the municipality, whether privately or municipally
13    owned or operated, or exercising the  same  privilege  within
14    the municipality.
15        Any  of  the  taxes  enumerated in this Section may be in
16    addition to the payment of money, or  value  of  products  or
17    services  furnished  to  the  municipality by the taxpayer as
18    compensation for the use of its  streets,  alleys,  or  other
19    public  places,  or  installation  and  maintenance  therein,
20    thereon  or  thereunder  of  poles,  wires,  pipes  or  other
21    equipment used in the operation of the taxpayer's business.
22        (a)  If  the  corporate  authorities  of  any  home  rule
23    municipality  have adopted an ordinance that imposed a tax on
24    public utility customers, between July 1, 1971,  and  October
25    1,  1981,  on the good faith belief that they were exercising
26    authority pursuant to Section 6 of Article VII  of  the  1970
27    Illinois   Constitution,   that   action   of  the  corporate
28    authorities   shall   be   declared    legal    and    valid,
29    notwithstanding  a  later  decision  of  a  judicial tribunal
30    declaring the ordinance invalid.  No  municipality  shall  be
31    required  to  rebate,  refund, or issue credits for any taxes
32    described in this paragraph, and those taxes shall be  deemed
33    to  have  been  levied  and  collected in accordance with the
34    Constitution and laws of this State.
 
                            -80-              LRB9203211SMdvA
 1        (b)  In any case in which (i) prior to October 19,  1979,
 2    the corporate authorities of any municipality have adopted an
 3    ordinance  imposing  a  tax authorized by this Section (or by
 4    the predecessor provision of the "Revised Cities and Villages
 5    Act") and have explicitly or in  practice  interpreted  gross
 6    receipts  to include either charges added to customers' bills
 7    pursuant to the provision of paragraph (a) of Section  36  of
 8    the Public Utilities Act or charges added to customers' bills
 9    by  taxpayers  who  are not subject to rate regulation by the
10    Illinois Commerce Commission for the  purpose  of  recovering
11    any of the tax liabilities or other amounts specified in such
12    paragraph (a) of Section 36 of that Act, and (ii) on or after
13    October  19,  1979,  a  judicial tribunal has construed gross
14    receipts to exclude  all  or  part  of  those  charges,  then
15    neither  those municipality nor any taxpayer who paid the tax
16    shall be required to rebate, refund, or issue credits for any
17    tax imposed or charge collected from  customers  pursuant  to
18    the  municipality's interpretation prior to October 19, 1979.
19    This paragraph reflects a legislative finding that  it  would
20    be  contrary to the public interest to require a municipality
21    or its taxpayers to refund taxes or charges  attributable  to
22    the  municipality's  more  inclusive  interpretation of gross
23    receipts prior to October 19, 1979, and is  not  intended  to
24    prescribe or limit judicial construction of this Section. The
25    legislative  finding  set  forth  in this subsection does not
26    apply to taxes imposed  after  the  effective  date  of  this
27    amendatory Act of 1995.
28        (c)  The  tax  authorized  by  subparagraph  3  shall  be
29    collected  from  the  purchaser   by the person maintaining a
30    place of business in this State who delivers the  electricity
31    to  the  purchaser.   This tax shall constitute a debt of the
32    purchaser to the person who delivers the electricity  to  the
33    purchaser and if unpaid, is recoverable in the same manner as
34    the  original charge for delivering the electricity.  Any tax
 
                            -81-              LRB9203211SMdvA
 1    required to be collected pursuant to an ordinance  authorized
 2    by  subparagraph  3  and  any  such tax collected by a person
 3    delivering electricity shall constitute a debt  owed  to  the
 4    municipality  by  such  person  delivering  the  electricity,
 5    provided,  that  the  person  delivering electricity shall be
 6    allowed  credit  for  such  tax  related  to  deliveries   of
 7    electricity   the  charges  for  which  are  written  off  as
 8    uncollectible, and provided further, that if such charges are
 9    thereafter  collected,  the  delivering  supplier  shall   be
10    obligated to remit such tax.  For purposes of this subsection
11    (c),  any  partial payment not specifically identified by the
12    purchaser  shall  be  deemed  to  be  for  the  delivery   of
13    electricity. Persons delivering electricity shall collect the
14    tax from the purchaser by adding such tax to the gross charge
15    for  delivering  the electricity, in the manner prescribed by
16    the municipality.  Persons delivering electricity shall  also
17    be  authorized to add to such gross charge an amount equal to
18    3% of the tax to reimburse the person delivering  electricity
19    for   the  expenses  incurred  in  keeping  records,  billing
20    customers, preparing and filing returns,  remitting  the  tax
21    and  supplying data to the municipality upon request.  If the
22    person delivering electricity fails to collect the  tax  from
23    the  purchaser,  then  the purchaser shall be required to pay
24    the tax directly to the municipality in the manner prescribed
25    by the municipality.  Persons delivering electricity who file
26    returns pursuant to this paragraph (c) shall, at the time  of
27    filing  such  return,  pay the municipality the amount of the
28    tax collected pursuant to subparagraph 3.
29        (d)  For the purpose of  the  taxes  enumerated  in  this
30    Section:
31        "Gross receipts" means the consideration received for the
32    transmission  of  messages,  the  consideration  received for
33    distributing, supplying, furnishing or selling gas for use or
34    consumption  and  not  for  resale,  and  the   consideration
 
                            -82-              LRB9203211SMdvA
 1    received  for  distributing, supplying, furnishing or selling
 2    water for use or consumption and not for resale, and for  all
 3    services  rendered  in  connection therewith valued in money,
 4    whether received  in  money  or  otherwise,  including  cash,
 5    credit,  services and property of every kind and material and
 6    for all services rendered therewith, and shall be  determined
 7    without  any deduction on account of the cost of transmitting
 8    such messages, without any deduction on account of  the  cost
 9    of  the  service,  product or commodity supplied, the cost of
10    materials used, labor or service cost, or any other  expenses
11    whatsoever.   "Gross receipts" shall not include that portion
12    of the consideration received  for  distributing,  supplying,
13    furnishing,   or   selling  gas  or  water  to,  or  for  the
14    transmission of messages for, business enterprises  described
15    in paragraph (e) of this Section to the extent and during the
16    period  in which the exemption authorized by paragraph (e) is
17    in  effect  or  for  school  districts  or  units  of   local
18    government  described  in  paragraph (f) during the period in
19    which the exemption authorized in paragraph (f) is in effect.
20    "Gross  receipts"  shall  not   include   amounts   paid   by
21    telecommunications  retailers  under  the  Telecommunications
22    Municipal Infrastructure Maintenance Fee Act.
23        For  utility  bills  issued  on or after May 1, 1996, but
24    before May 1, 1997,  and  for  receipts  from  those  utility
25    bills,  "gross  receipts"  does  not include one-third of (i)
26    amounts added to customers' bills under Section 9-222 of  the
27    Public  Utilities  Act,  or  (ii) amounts added to customers'
28    bills by taxpayers who are not subject to rate regulation  by
29    the   Illinois   Commerce   Commission  for  the  purpose  of
30    recovering any of the tax liabilities  described  in  Section
31    9-222  of  the Public Utilities Act. For utility bills issued
32    on or after May 1, 1997, but before  May  1,  1998,  and  for
33    receipts  from those utility bills, "gross receipts" does not
34    include two-thirds of (i) amounts added to  customers'  bills
 
                            -83-              LRB9203211SMdvA
 1    under  Section  9-222  of  the  Public Utilities Act, or (ii)
 2    amount added to customers' bills by  taxpayers  who  are  not
 3    subject   to   rate   regulation  by  the  Illinois  Commerce
 4    Commission for the purpose  of  recovering  any  of  the  tax
 5    liabilities   described   in  Section  9-222  of  the  Public
 6    Utilities Act. For utility bills issued on or  after  May  1,
 7    1998,  and  for  receipts  from  those  utility bills, "gross
 8    receipts" does not include (i) amounts  added  to  customers'
 9    bills  under  Section  9-222  of the Public Utilities Act, or
10    (ii) amounts added to customers' bills by taxpayers  who  are
11    not  subject  to  rate  regulation  by  the Illinois Commerce
12    Commission for the purpose  of  recovering  any  of  the  tax
13    liabilities   described   in  Section  9-222  of  the  Public
14    Utilities Act.
15        For purposes of this Section "gross receipts"  shall  not
16    include  (i)  amounts added to customers' bills under Section
17    9-221 of the Public Utilities Act, or (ii) charges  added  to
18    customers'  bills  to recover the surcharge imposed under the
19    Emergency  Telephone  System  Act.  This  paragraph  is   not
20    intended  to  nor  does  it make any change in the meaning of
21    "gross receipts" for the purposes of  this  Section,  but  is
22    intended  to  remove possible ambiguities, thereby confirming
23    the  existing  meaning  of  "gross  receipts"  prior  to  the
24    effective date of this amendatory Act of 1995.
25        The words "transmitting messages",  in  addition  to  the
26    usual  and popular meaning of person to person communication,
27    shall  include  the  furnishing,  for  a  consideration,   of
28    services or facilities (whether owned or leased), or both, to
29    persons in connection with the transmission of messages where
30    those  persons  do not, in turn, receive any consideration in
31    connection therewith, but shall not include  such  furnishing
32    of  services or facilities to persons for the transmission of
33    messages to the extent that any such services  or  facilities
34    for   the  transmission  of  messages  are  furnished  for  a
 
                            -84-              LRB9203211SMdvA
 1    consideration, by those persons to  other  persons,  for  the
 2    transmission of messages.
 3        "Person"  as  used  in  this  Section  means  any natural
 4    individual, firm, trust,  estate,  partnership,  association,
 5    joint  stock  company,  joint adventure, corporation, limited
 6    liability company, municipal corporation, the State or any of
 7    its political subdivisions, any State university  created  by
 8    statute,   or   a   receiver,   trustee,  guardian  or  other
 9    representative appointed by order of any court.
10        "Person maintaining a place of business  in  this  State"
11    shall  mean  any  person  having  or  maintaining within this
12    State, directly or by a subsidiary  or  other  affiliate,  an
13    office,    generation    facility,   distribution   facility,
14    transmission  facility,  sales  office  or  other  place   of
15    business,  or  any  employee,  agent, or other representative
16    operating within this State under the authority of the person
17    or its subsidiary or other affiliate, irrespective of whether
18    such place of business or agent or  other  representative  is
19    located  in this State permanently or temporarily, or whether
20    such person, subsidiary or other  affiliate  is  licensed  or
21    qualified to do business in this State.
22        "Public utility" shall have the meaning ascribed to it in
23    Section  3-105  of the Public Utilities Act and shall include
24    telecommunications carriers as defined in Section  13-202  of
25    that Act and alternative retail electric suppliers as defined
26    in Section 16-102 of that Act.
27        "Purchase  at  retail"  shall  mean  any  acquisition  of
28    electricity   by   a   purchaser   for  purposes  of  use  or
29    consumption, and not for resale, but shall  not  include  the
30    use  of  electricity  by  a  public  utility  directly in the
31    generation, production, transmission,  delivery  or  sale  of
32    electricity.
33        "Purchaser"  shall  mean any person who uses or consumes,
34    within the corporate limits of the municipality,  electricity
 
                            -85-              LRB9203211SMdvA
 1    acquired in a purchase at retail.
 2        In  the  case  of  persons  engaged  in  the  business of
 3    transmitting messages through the use  of  mobile  equipment,
 4    such   as  cellular  phones  and  paging  systems,  the gross
 5    receipts from the  business  shall  be  deemed  to  originate
 6    within  the  corporate  limits  of a municipality only if the
 7    address to which the bills for the service are sent is within
 8    those corporate limits. If,  however,  that  address  is  not
 9    located  within  a municipality that imposes a tax under this
10    Section, then (i) if the party responsible for  the  bill  is
11    not an individual, the gross receipts from the business shall
12    be  deemed  to  originate  within the corporate limits of the
13    municipality where that party's principal place  of  business
14    in Illinois is located, and (ii) if the party responsible for
15    the  bill  is  an  individual,  the  gross  receipts from the
16    business shall be deemed to originate  within  the  corporate
17    limits  of  the  municipality  where  that  party's principal
18    residence in Illinois is located.
19        (e)  Any municipality  that  imposes  taxes  upon  public
20    utilities  or  upon  the  privilege  of  using  or  consuming
21    electricity pursuant to this Section whose territory includes
22    any  part  of  an  enterprise  zone  or  federally designated
23    Foreign Trade Zone or Sub-Zone may, by a majority vote of its
24    corporate authorities, exempt from those taxes for  a  period
25    not  exceeding  20  years  any  specified percentage of gross
26    receipts of public utilities received  from,  or  electricity
27    used or consumed by, business enterprises that:
28             (1)  either  (i)  make  investments  that  cause the
29        creation of a minimum of 200 full-time equivalent jobs in
30        Illinois, (ii) make investments of at least  $175,000,000
31        that  cause  the  creation  of a minimum of 150 full-time
32        equivalent jobs in Illinois, or  (iii)  make  investments
33        that  cause the retention of a minimum of 1,000 full-time
34        jobs in Illinois; and
 
                            -86-              LRB9203211SMdvA
 1             (2)  are either (i) located in  an  Enterprise  Zone
 2        established  pursuant to the Illinois Enterprise Zone Act
 3        or (ii) Department  of  Commerce  and  Community  Affairs
 4        designated  High Impact Businesses located in a federally
 5        designated Foreign Trade Zone or Sub-Zone; and
 6             (3)  are certified by the Department of Commerce and
 7        Community Affairs  as  complying  with  the  requirements
 8        specified in clauses (1) and (2) of this paragraph (e).
 9        Upon adoption of the ordinance authorizing the exemption,
10    the  municipal  clerk shall transmit a copy of that ordinance
11    to the Department of Commerce  and  Community  Affairs.   The
12    Department  of Commerce and Community Affairs shall determine
13    whether the business enterprises located in the  municipality
14    meet  the  criteria  prescribed  in  this  paragraph.  If the
15    Department of Commerce and Community Affairs determines  that
16    the  business  enterprises  meet the criteria, it shall grant
17    certification.  The  Department  of  Commerce  and  Community
18    Affairs  shall act upon certification requests within 30 days
19    after receipt of the ordinance.
20        Upon certification of  the  business  enterprise  by  the
21    Department  of Commerce and Community Affairs, the Department
22    of Commerce and Community Affairs shall notify the Department
23    of Revenue of the certification.  The Department  of  Revenue
24    shall  notify the public utilities of the exemption status of
25    the gross receipts received from, and the electricity used or
26    consumed  by,  the  certified  business  enterprises.    Such
27    exemption  status  shall  be  effective within 3 months after
28    certification.
29        (f)  A  municipality  that  imposes  taxes  upon   public
30    utilities  or  upon  the  privilege  of  using  or  consuming
31    electricity  under  this Section and whose territory includes
32    part of another unit of local government or a school district
33    may by ordinance exempt the other unit of local government or
34    school district from those taxes.
 
                            -87-              LRB9203211SMdvA
 1        (g)  The amendment of this Section by Public  Act  84-127
 2    shall  take  precedence  over  any  other  amendment  of this
 3    Section by any  other  amendatory  Act  passed  by  the  84th
 4    General  Assembly  before  the  effective  date of Public Act
 5    84-127.
 6        (h)  In any case in which, before July 1, 1992, a  person
 7    engaged  in the business of transmitting messages through the
 8    use of mobile equipment, such as cellular phones  and  paging
 9    systems,  has  determined  the  municipality within which the
10    gross receipts from the business originated by  reference  to
11    the location of its transmitting or switching equipment, then
12    (i)  neither  the  municipality to which tax was paid on that
13    basis nor the taxpayer that paid tax on that basis  shall  be
14    required to rebate, refund, or issue credits for any such tax
15    or  charge collected from customers to reimburse the taxpayer
16    for the tax and (ii) no municipality to which tax would  have
17    been  paid  with  respect  to  those  gross  receipts  if the
18    provisions of this amendatory Act of 1991 had been in  effect
19    before  July  1,  1992,  shall  have  any  claim  against the
20    taxpayer for any amount of the tax.
21    (Source: P.A.  90-16,  eff.  6-16-97;  90-561,  eff.  8-1-98;
22    90-562, eff. 12-16-97; 90-655,  eff.  7-30-98;  91-870,  eff.
23    6-22-00.)

24        (65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
25        Sec.  8-11-5.  Home Rule Municipal Service Occupation Tax
26    Act.  The corporate authorities of a home  rule  municipality
27    may   impose   a  tax  upon  all  persons  engaged,  in  such
28    municipality, in the business of making sales of  service  at
29    the  same  rate of tax imposed pursuant to Section 8-11-1, of
30    the  selling  price  of  all   tangible   personal   property
31    transferred by such servicemen either in the form of tangible
32    personal  property  or  in  the  form  of  real  estate as an
33    incident to a sale of service.  If imposed,  such  tax  shall
 
                            -88-              LRB9203211SMdvA
 1    only be imposed in 1/4% increments. On and after September 1,
 2    1991,  this additional tax may not be imposed on the sales of
 3    food for human consumption which is to be  consumed  off  the
 4    premises  where  it  is sold (other than alcoholic beverages,
 5    soft drinks and food which has been  prepared  for  immediate
 6    consumption)  and prescription and nonprescription medicines,
 7    drugs,  medical  appliances  and   insulin,   urine   testing
 8    materials,  syringes  and  needles used by diabetics. The tax
 9    imposed by a home rule municipality pursuant to this  Section
10    and  all  civil penalties that may be assessed as an incident
11    thereof  shall  be  collected  and  enforced  by  the   State
12    Department  of Revenue. The certificate of registration which
13    is  issued  by  the  Department  to  a  retailer  under   the
14    Retailers' Occupation Tax Act or under the Service Occupation
15    Tax  Act shall permit such registrant to engage in a business
16    which is taxable under any ordinance  or  resolution  enacted
17    pursuant  to this Section without registering separately with
18    the Department under such ordinance or  resolution  or  under
19    this  Section.   The  Department  shall  have  full  power to
20    administer and enforce this Section; to collect all taxes and
21    penalties due hereunder; to dispose of taxes and penalties so
22    collected  in  the  manner  hereinafter  provided,   and   to
23    determine  all  rights to credit memoranda arising on account
24    of the erroneous payment of tax or penalty hereunder. In  the
25    administration  of,  and  compliance  with,  this Section the
26    Department and persons who are subject to this Section  shall
27    have  the  same  rights,  remedies,  privileges,  immunities,
28    powers  and  duties,  and  be subject to the same conditions,
29    restrictions,  limitations,  penalties  and  definitions   of
30    terms,  and  employ  the  same  modes  of  procedure,  as are
31    prescribed in Sections  1a-1,  2,  2a,  3  through  3-50  (in
32    respect  to  all provisions therein other than the State rate
33    of tax), 4 (except that the reference to the State  shall  be
34    to  the  taxing  municipality),  5,  7,  8  (except  that the
 
                            -89-              LRB9203211SMdvA
 1    jurisdiction to which the tax shall be a debt to  the  extent
 2    indicated   in   that   Section   8   shall   be  the  taxing
 3    municipality), 9 (except as to the disposition of  taxes  and
 4    penalties collected, and except that the returned merchandise
 5    credit  for  this  municipal tax may not be taken against any
 6    State tax), 10, 11,  12  (except  the  reference  therein  to
 7    Section  2b of the Retailers' Occupation Tax Act), 13 (except
 8    that any  reference  to  the  State  shall  mean  the  taxing
 9    municipality),  the  first  paragraph  of  Section 15, 16, 17
10    (except that credit memoranda issued  hereunder  may  not  be
11    used  to discharge any State tax liability), 18, 19 and 20 of
12    the Service Occupation Tax Act and Section 3-7 of the Uniform
13    Penalty and Interest Act, as fully  as  if  those  provisions
14    were set forth herein.
15        No  tax  may  be  imposed  by  a  home  rule municipality
16    pursuant  to  this  Section  unless  such  municipality  also
17    imposes a tax at the same rate pursuant to Section 8-11-1  of
18    this Act.
19        Beginning  in  2001, propane and home heating oil sold to
20    residential customers on or  after  December  1  and  through
21    March 31 of each year are exempt from the tax imposed by this
22    Section or under the authority of any home rule power.
23        Beginning in 2002, for bills issued on or after January 1
24    and  through  April  30  each  year, natural gas distributed,
25    supplied, furnished, or  sold  to  residential  customers  is
26    exempt  from  the  tax  imposed  by this Section or under the
27    authority of any home rule power.
28        This amendatory Act of the 92nd  General  Assembly  is  a
29    denial  and  limitation  of  home  rule  powers  to tax under
30    subsection (g) of Section 6 of Article VII  of  the  Illinois
31    Constitution.
32        Persons  subject  to  any  tax  imposed  pursuant  to the
33    authority granted in this Section  may  reimburse  themselves
34    for  their serviceman's tax liability hereunder by separately
 
                            -90-              LRB9203211SMdvA
 1    stating such tax as an additional charge, which charge may be
 2    stated in combination, in a single  amount,  with  State  tax
 3    which  servicemen are authorized to collect under the Service
 4    Use Tax Act,  pursuant  to  such  bracket  schedules  as  the
 5    Department may prescribe.
 6        Whenever  the  Department determines that a refund should
 7    be made under this Section to a claimant instead  of  issuing
 8    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  such
11    notification from the Department.  Such refund shall be  paid
12    by  the  State  Treasurer  out  of  the  home  rule municipal
13    retailers' occupation tax fund.
14        The Department shall forthwith  pay  over  to  the  State
15    Treasurer,  ex-officio,  as  trustee, all taxes and penalties
16    collected hereunder. On  or  before  the  25th  day  of  each
17    calendar  month,  the Department shall prepare and certify to
18    the Comptroller the disbursement of stated sums of  money  to
19    named  municipalities,  the  municipalities  to be those from
20    which suppliers and servicemen have paid taxes  or  penalties
21    hereunder  to  the  Department  during  the  second preceding
22    calendar month. The amount to be paid  to  each  municipality
23    shall   be   the  amount  (not  including  credit  memoranda)
24    collected hereunder  during  the  second  preceding  calendar
25    month by the Department, and not including an amount equal to
26    the  amount  of  refunds  made  during  the  second preceding
27    calendar  month  by  the  Department  on   behalf   of   such
28    municipality.   Within   10   days   after  receipt,  by  the
29    Comptroller,  of  the  disbursement  certification   to   the
30    municipalities,  provided  for in this Section to be given to
31    the Comptroller by  the  Department,  the  Comptroller  shall
32    cause  the  orders  to be drawn for the respective amounts in
33    accordance   with   the   directions   contained   in    such
34    certification.
 
                            -91-              LRB9203211SMdvA
 1        In addition to the disbursement required by the preceding
 2    paragraph   and   in  order  to  mitigate  delays  caused  by
 3    distribution procedures, an allocation shall,  if  requested,
 4    be  made  within  10  days  after  January  14,  1991, and in
 5    November  of  1991  and  each  year   thereafter,   to   each
 6    municipality  that  received  more  than  $500,000 during the
 7    preceding fiscal year,  (July  1  through  June  30)  whether
 8    collected  by the municipality or disbursed by the Department
 9    as required by this Section. Within 10 days after January 14,
10    1991,   participating   municipalities   shall   notify   the
11    Department in writing of their  intent  to  participate.   In
12    addition,   for   the   initial  distribution,  participating
13    municipalities shall certify to the  Department  the  amounts
14    collected  by  the municipality for each month under its home
15    rule occupation and service occupation tax during the  period
16    July 1, 1989 through June 30, 1990.  The allocation within 10
17    days  after  January 14, 1991, shall be in an amount equal to
18    the monthly average of these amounts, excluding the 2  months
19    of  highest receipts.  Monthly average for the period of July
20    1, 1990 through June 30, 1991 will be determined as  follows:
21    the amounts collected by the municipality under its home rule
22    occupation  and  service  occupation tax during the period of
23    July  1,  1990  through  September  30,  1990,  plus  amounts
24    collected by the Department and  paid  to  such  municipality
25    through  June  30,  1991,  excluding  the 2 months of highest
26    receipts.  The monthly average for each subsequent period  of
27    July  1  through  June  30  shall  be  an amount equal to the
28    monthly distribution made to each such municipality under the
29    preceding paragraph  during  this  period,  excluding  the  2
30    months   of  highest  receipts.   The  distribution  made  in
31    November 1991 and each year thereafter under  this  paragraph
32    and  the  preceding  paragraph shall be reduced by the amount
33    allocated and disbursed under this paragraph in the preceding
34    period of July 1 through  June  30.    The  Department  shall
 
                            -92-              LRB9203211SMdvA
 1    prepare  and  certify to the Comptroller for disbursement the
 2    allocations made in accordance with this paragraph.
 3        Nothing in this Section shall be construed to authorize a
 4    municipality 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 this State.
 7        An ordinance or resolution imposing  or  discontinuing  a
 8    tax hereunder or effecting a change in the rate thereof shall
 9    be  adopted  and  a  certified  copy  thereof  filed with the
10    Department on or before the first day of June, whereupon  the
11    Department  shall  proceed  to  administer  and  enforce this
12    Section as of the first day of September next following  such
13    adoption and filing.  Beginning January 1, 1992, an ordinance
14    or  resolution imposing or discontinuing the tax hereunder or
15    effecting a change in the rate thereof shall be adopted and a
16    certified copy thereof filed with the Department on or before
17    the first day of July, whereupon the Department shall proceed
18    to administer and enforce this Section as of the first day of
19    October next following such adoption  and  filing.  Beginning
20    January  1,  1993,  an  ordinance  or  resolution imposing or
21    discontinuing the tax hereunder or effecting a change in  the
22    rate  thereof  shall  be adopted and a certified copy thereof
23    filed with the Department on  or  before  the  first  day  of
24    October, whereupon the Department shall proceed to administer
25    and  enforce this Section as of the first day of January next
26    following such adoption and filing. However,  a  municipality
27    located  in a county with a population in excess of 3,000,000
28    that elected to become  a  home  rule  unit  at  the  general
29    primary election in 1994 may adopt an ordinance or resolution
30    imposing the tax under this Section and file a certified copy
31    of  the  ordinance  or  resolution  with the Department on or
32    before July 1, 1994. The Department  shall  then  proceed  to
33    administer  and  enforce  this Section as of October 1, 1994.
34    Beginning April 1, 1998, an ordinance or resolution  imposing
 
                            -93-              LRB9203211SMdvA
 1    or  discontinuing  the tax hereunder or effecting a change in
 2    the rate thereof shall either (i) be adopted and a  certified
 3    copy thereof filed with the Department on or before the first
 4    day  of  April,  whereupon  the  Department  shall proceed to
 5    administer and enforce this Section as of the  first  day  of
 6    July  next  following  the  adoption  and  filing; or (ii) be
 7    adopted  and  a  certified  copy  thereof  filed   with   the
 8    Department  on  or before the first day of October, whereupon
 9    the Department shall proceed to administer and  enforce  this
10    Section  as  of  the  first day of January next following the
11    adoption and filing.
12        Any  unobligated  balance  remaining  in  the   Municipal
13    Retailers'  Occupation  Tax  Fund on December 31, 1989, which
14    fund was abolished by Public Act 85-1135, and all receipts of
15    municipal tax as a result  of  audits  of  liability  periods
16    prior  to  January  1,  1990,  shall  be  paid into the Local
17    Government Tax Fund, for distribution  as  provided  by  this
18    Section  prior  to  the  enactment of Public Act 85-1135. All
19    receipts of municipal tax as a result of  an  assessment  not
20    arising from an audit, for liability periods prior to January
21    1, 1990, shall be paid into the Local Government Tax Fund for
22    distribution before July 1, 1990, as provided by this Section
23    prior  to  the  enactment  of  Public Act 85-1135, and on and
24    after July 1, 1990, all such receipts shall be distributed as
25    provided in Section 6z-18 of the State Finance Act.
26        As used in this Section, "municipal"  and  "municipality"
27    means  a  city,  village  or  incorporated town, including an
28    incorporated town which has superseded a civil township.
29        This Section shall be known and may be cited as the  Home
30    Rule Municipal Service Occupation Tax Act.
31    (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)

32        (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
33        Sec. 8-11-6.  Home Rule Municipal Use Tax Act.
 
                            -94-              LRB9203211SMdvA
 1        (a)  The   corporate   authorities   of   a   home   rule
 2    municipality may impose a tax upon the privilege of using, in
 3    such  municipality,  any  item  of tangible personal property
 4    which is purchased at retail from a retailer,  and  which  is
 5    titled  or  registered  at  a  location  within the corporate
 6    limits of such home rule municipality with an agency of  this
 7    State's  government,  at a rate which is an increment of 1/4%
 8    and based on the selling  price  of  such  tangible  personal
 9    property,  as  "selling price" is defined in the Use Tax Act.
10    In  home  rule  municipalities  with  less   than   2,000,000
11    inhabitants,  the  tax shall be collected by the municipality
12    imposing the tax from  persons  whose  Illinois  address  for
13    titling  or  registration  purposes is given as being in such
14    municipality.
15        (b)  In home rule municipalities with 2,000,000  or  more
16    inhabitants,  the  corporate  authorities of the municipality
17    may additionally impose a tax beginning July 1, 1991 upon the
18    privilege of using in the municipality, any item of  tangible
19    personal  property,  other  than  tangible  personal property
20    titled  or  registered  with  an  agency   of   the   State's
21    government,  that  is  purchased  at  retail  from a retailer
22    located outside the corporate limits of the municipality,  at
23    a  rate  that  is  an  increment of 1/4% not to exceed 1% and
24    based on the selling price of the tangible personal property,
25    as "selling price" is defined in the Use Tax Act.   Such  tax
26    shall  be  collected  from  the purchaser by the municipality
27    imposing such tax.
28        To prevent multiple home rule taxation, the use in a home
29    rule municipality  of  tangible  personal  property  that  is
30    acquired  outside  the  municipality and caused to be brought
31    into the municipality by a person who has already paid a home
32    rule municipal tax in another municipality in respect to  the
33    sale,  purchase,  or use of that property, shall be exempt to
34    the extent of the amount of the tax properly due and paid  in
 
                            -95-              LRB9203211SMdvA
 1    the other home rule municipality.
 2        (b-5)  Beginning  in  2001,  propane and home heating oil
 3    sold to residential customers on  or  after  December  1  and
 4    through March 31 of each year are exempt from the tax imposed
 5    by  this  Section  or  under  the  authority of any home rule
 6    power.
 7        Beginning in 2002, for bills issued on or after January 1
 8    and through April 30  each  year,  natural  gas  distributed,
 9    supplied,  furnished,  or  sold  to  residential customers is
10    exempt from the tax imposed by  this  Section  or  under  the
11    authority of any home rule power.
12        This  amendatory  Act  of  the 92nd General Assembly is a
13    denial and limitation  of  home  rule  powers  to  tax  under
14    subsection  (g)  of  Section 6 of Article VII of the Illinois
15    Constitution.
16        (c)  If  a  municipality   having   2,000,000   or   more
17    inhabitants  imposes  the  tax  authorized by subsection (a),
18    then the tax shall be collected by the Illinois Department of
19    Revenue when the property  is  purchased  at  retail  from  a
20    retailer  in  the  county in which the home rule municipality
21    imposing the tax is located, and in all contiguous  counties.
22    The  tax  shall  be  remitted  to  the State, or an exemption
23    determination must be obtained from the Department before the
24    title or certificate of registration for the property may  be
25    issued.   The tax or proof of exemption may be transmitted to
26    the Department by way of the  State  agency  with  which,  or
27    State  officer with whom, the tangible personal property must
28    be titled or registered if the Department and that agency  or
29    State officer determine that this procedure will expedite the
30    processing of applications for title or registration.
31        The  Department  shall  have full power to administer and
32    enforce this Section to  collect  all  taxes,  penalties  and
33    interest  due  hereunder,  to dispose of taxes, penalties and
34    interest so collected in the manner hereinafter provided, and
 
                            -96-              LRB9203211SMdvA
 1    determine all rights to credit memoranda or  refunds  arising
 2    on  account  of  the  erroneous  payment  of  tax, penalty or
 3    interest hereunder.  In the administration of and  compliance
 4    with  this Section the Department and persons who are subject
 5    to  this  Section  shall  have  the  same  rights,  remedies,
 6    privileges, immunities, powers and duties, and be subject  to
 7    the same conditions, restrictions, limitations, penalties and
 8    definitions  of terms, and employ the same modes of procedure
 9    as are prescribed in Sections 2  (except  the  definition  of
10    "retailer  maintaining a place of business in this State"), 3
11    (except provisions pertaining to the State rate of  tax,  and
12    except  provisions  concerning collection or refunding of the
13    tax by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and  22
14    of  the  Use  Tax  Act,  which are not inconsistent with this
15    Section,  as  fully  as  if  provisions  contained  in  those
16    Sections of the Use Tax Act were set forth herein.
17        Whenever the Department determines that a refund shall be
18    made under this Section to a claimant instead  of  issuing  a
19    credit  memorandum,  the  Department  shall  notify the State
20    Comptroller, who shall cause the order to be  drawn  for  the
21    amount   specified,   and   to  the  person  named,  in  such
22    notification from the Department.  Such refund shall be  paid
23    by  the  State  Treasurer  out  of  the  home  rule municipal
24    retailers' occupation tax fund.
25        The Department shall forthwith  pay  over  to  the  State
26    Treasurer,  ex  officio, as trustee, all taxes, penalties and
27    interest collected hereunder.  On or before the 25th  day  of
28    each calendar month, the Department shall prepare and certify
29    to  the  State Comptroller the disbursement of stated sums of
30    money to  named  municipalities,  the  municipality  in  each
31    instance  to  be  that municipality from which the Department
32    during  the  second  preceding  calendar   month,   collected
33    municipal  use tax from any person whose Illinois address for
34    titling or registration purposes is given as  being  in  such
 
                            -97-              LRB9203211SMdvA
 1    municipality.   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, less the  amount  expended  during  the  second
 8    preceding  month  by  the  Department  to  be  paid  from the
 9    appropriation to the Department from the Home Rule  Municipal
10    Retailers'  Occupation  Tax Trust Fund.  The appropriation to
11    cover the costs incurred by the Department  in  administering
12    and  enforcing this Section shall not exceed 2% of the amount
13    estimated to  be  deposited  into  the  Home  Rule  Municipal
14    Retailers'  Occupation  Tax Trust Fund during the fiscal year
15    for which the appropriation is made.  Within  10  days  after
16    receipt   by   the  State  Comptroller  of  the  disbursement
17    certification to the  municipalities  provided  for  in  this
18    Section   to  be  given  to  the  State  Comptroller  by  the
19    Department, the State Comptroller shall cause the  orders  to
20    be  drawn  for  the respective amounts in accordance with the
21    directions contained in that certification.
22        Any ordinance imposing or discontinuing  any  tax  to  be
23    collected  and  enforced by the Department under this Section
24    shall be adopted and a certified copy thereof filed with  the
25    Department  on  or before October 1, whereupon the Department
26    of Revenue shall  proceed  to  administer  and  enforce  this
27    Section  on behalf of the municipalities as of January 1 next
28    following such adoption and filing.  Beginning April 1, 1998,
29    any  ordinance  imposing  or  discontinuing  any  tax  to  be
30    collected and enforced by the Department under  this  Section
31    shall  either  (i)  be  adopted  and a certified copy thereof
32    filed with the Department on or before April 1, whereupon the
33    Department of Revenue shall proceed to administer and enforce
34    this Section on behalf of the municipalities  as  of  July  1
 
                            -98-              LRB9203211SMdvA
 1    next  following  the  adoption and filing; or (ii) be adopted
 2    and a certified copy thereof filed with the Department on  or
 3    before  October  1, whereupon the Department of Revenue shall
 4    proceed to administer and enforce this Section on  behalf  of
 5    the  municipalities  as  of  January  1  next  following  the
 6    adoption and filing.
 7        Nothing  in this subsection (c) shall prevent a home rule
 8    municipality from collecting the tax pursuant  to  subsection
 9    (a)  in  any situation where such tax is not collected by the
10    Department of Revenue under this subsection (c).
11        (d)  Any unobligated balance remaining in  the  Municipal
12    Retailers'  Occupation  Tax  Fund on December 31, 1989, which
13    fund was abolished by Public Act 85-1135, and all receipts of
14    municipal tax as a result  of  audits  of  liability  periods
15    prior  to  January  1,  1990,  shall  be  paid into the Local
16    Government Tax Fund, for distribution  as  provided  by  this
17    Section  prior  to  the  enactment of Public Act 85-1135. All
18    receipts of municipal tax as a result of  an  assessment  not
19    arising from an audit, for liability periods prior to January
20    1, 1990, shall be paid into the Local Government Tax Fund for
21    distribution before July 1, 1990, as provided by this Section
22    prior  to  the  enactment  of  Public Act 85-1135, and on and
23    after July 1, 1990, all such receipts shall be distributed as
24    provided in Section 6z-18 of the State Finance Act.
25        (e)  As   used   in   this   Section,   "Municipal"   and
26    "Municipality" means a city, village  or  incorporated  town,
27    including  an  incorporated town which has superseded a civil
28    township.
29        (f)  This Section shall be known and may be cited as  the
30    Home Rule Municipal Use Tax Act.
31    (Source:  P.A.  90-562,  eff. 12-16-97; 90-689, eff. 7-31-98;
32    91-51, eff. 6-30-99.)

33        Section 50.  The Civic Center Code is amended by changing
 
                            -99-              LRB9203211SMdvA
 1    Section 245-12 as follows:

 2        (70 ILCS 200/245-12)
 3        Sec. 245-12. Use and occupation taxes.
 4        (a)  The Authority may adopt a resolution that authorizes
 5    a referendum on the question of whether the  Authority  shall
 6    be  authorized  to  impose  a  retailers'  occupation  tax, a
 7    service occupation tax, and a use tax in one-quarter  percent
 8    increments  at  a  rate not to exceed 1%. The Authority shall
 9    certify the question to the proper election  authorities  who
10    shall  submit  the question to the voters of the metropolitan
11    area at the next regularly scheduled election  in  accordance
12    with  the  general  election  law.  The  question shall be in
13    substantially the following form:
14        "Shall the Salem Civic Center Authority be authorized  to
15        impose  a retailers' occupation tax, a service occupation
16        tax, and a use tax at the rate of  (rate)  for  the  sole
17        purpose of obtaining funds for the support, construction,
18        maintenance,   or   financing   of   a  facility  of  the
19        Authority?"
20        Votes shall be recorded as "yes" or "no". If  a  majority
21    of  all  votes  cast  on  the proposition are in favor of the
22    proposition, the Authority is authorized to impose the tax.
23        (b)  The Authority shall impose the retailers' occupation
24    tax upon all persons  engaged  in  the  business  of  selling
25    tangible  personal  property  at  retail  in the metropolitan
26    area, at the  rate  approved  by  referendum,  on  the  gross
27    receipts  from  the sales made in the course of such business
28    within the metropolitan area.  The  tax  imposed  under  this
29    Section  and  all  civil penalties that may be assessed as an
30    incident thereof shall  be  collected  and  enforced  by  the
31    Department  of  Revenue.   The  Department  has full power to
32    administer and enforce this Section; to collect all taxes and
33    penalties  so  collected  in  the  manner  provided  in  this
 
                            -100-             LRB9203211SMdvA
 1    Section; and to determine  all  rights  to  credit  memoranda
 2    arising on account of the erroneous payment of tax or penalty
 3    hereunder.   In  the  administration of, and compliance with,
 4    this Section, the Department and persons who are  subject  to
 5    this  Section  shall  (i)  have  the  same  rights, remedies,
 6    privileges, immunities, powers and duties, (ii) be subject to
 7    the same conditions,  restrictions,  limitations,  penalties,
 8    exclusions,  exemptions,  and definitions of terms, and (iii)
 9    employ the same modes  of  procedure  as  are  prescribed  in
10    Sections  1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2,
11    2-5, 2-5.5, 2-10 (in respect to all provisions therein  other
12    than the State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3
13    (except   as  to  the  disposition  of  taxes  and  penalties
14    collected  and  provisions   related   to   quarter   monthly
15    payments),  4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l,
16    6, 6a, 6b, 6c, 7, 8, 9, 10,  11,  11a,  12,  and  13  of  the
17    Retailers'  Occupation Tax Act and Section 3-7 of the Uniform
18    Penalty and Interest Act, as fully  as  if  those  provisions
19    were set forth in this subsection.
20        Beginning  in  2001, propane and home heating oil sold to
21    residential customers on or  after  December  1  and  through
22    March 31 of each year are exempt from the tax imposed by this
23    subsection.
24        Beginning in 2002, for bills issued on or after January 1
25    and  through  April  30  each  year, natural gas distributed,
26    supplied, furnished, or  sold  to  residential  customers  is
27    exempt from the tax imposed by this subsection.
28        Persons  subject to any tax imposed under this subsection
29    may reimburse themselves for their seller's tax liability  by
30    separately  stating  the  tax  as an additional charge, which
31    charge may be stated in combination, in a single amount, with
32    State  taxes  that  sellers  are  required  to  collect,   in
33    accordance  with such bracket schedules as the Department may
34    prescribe.
 
                            -101-             LRB9203211SMdvA
 1        Whenever the Department determines that a  refund  should
 2    be  made  under  this  subsection  to  a  claimant instead of
 3    issuing a credit memorandum, the Department shall notify  the
 4    State  Comptroller,  who  shall cause the warrant to be drawn
 5    for the amount specified, and to the  person  named,  in  the
 6    notification  from  the Department.  The refund shall be paid
 7    by the State Treasurer out of the tax fund  referenced  under
 8    paragraph (g) of this Section.
 9        If  a  tax  is  imposed  under this subsection (b), a tax
10    shall also be imposed at the same rate under subsections  (c)
11    and (d) of this Section.
12        For  the  purpose of determining whether a tax authorized
13    under this  Section  is  applicable,  a  retail  sale,  by  a
14    producer  of  coal  or  other mineral mined in Illinois, is a
15    sale at retail at the place where the coal or  other  mineral
16    mined   in  Illinois  is  extracted  from  the  earth.   This
17    paragraph does not apply to coal or other mineral when it  is
18    delivered  or  shipped  by  the  seller to the purchaser at a
19    point outside Illinois so that the sale is exempt  under  the
20    Federal  Constitution  as  a  sale  in  interstate or foreign
21    commerce.
22        Nothing in this Section shall be construed  to  authorize
23    the  Authority to impose a tax upon the privilege of engaging
24    in any business which under the Constitution  of  the  United
25    States may not be made the subject of taxation by this State.
26        (c)  If  a  tax  has been imposed under subsection (b), a
27    service occupation tax shall also be imposed at the same rate
28    upon all persons engaged, in the metropolitan  area,  in  the
29    business  of  making sales of service, who, as an incident to
30    making those sales of  service,  transfer  tangible  personal
31    property  within  the  metropolitan  area as an incident to a
32    sale of service. The tax imposed under  this  subsection  and
33    all  civil  penalties  that  may  be  assessed as an incident
34    thereof shall be collected and enforced by the Department  of
 
                            -102-             LRB9203211SMdvA
 1    Revenue.  The  Department  has  full  power to administer and
 2    enforce this paragraph; to collect all  taxes  and  penalties
 3    due hereunder; to dispose of taxes and penalties so collected
 4    in  the  manner  hereinafter  provided;  and to determine all
 5    rights  to  credit  memoranda  arising  on  account  of   the
 6    erroneous  payment  of  tax  or  penalty  hereunder.   In the
 7    administration of, and compliance with  this  paragraph,  the
 8    Department  and  persons  who  are  subject to this paragraph
 9    shall  (i)  have  the  same  rights,  remedies,   privileges,
10    immunities,  powers,  and duties, (ii) be subject to the same
11    conditions, restrictions, limitations, penalties, exclusions,
12    exemptions, and definitions of terms, and  (iii)  employ  the
13    same  modes  of  procedure  as  are  prescribed in Sections 2
14    (except that the reference to  State  in  the  definition  of
15    supplier  maintaining a place of business in this State shall
16    mean the metropolitan area),  2a,  2b,  3  through  3-55  (in
17    respect  to  all provisions therein other than the State rate
18    of tax), 4 (except that the reference to the State  shall  be
19    to  the  Authority), 5, 7, 8 (except that the jurisdiction to
20    which the tax shall be a debt to the extent indicated in that
21    Section 8 shall be  the  Authority),  9  (except  as  to  the
22    disposition of taxes and penalties collected, and except that
23    the returned merchandise credit for this tax may not be taken
24    against  any State tax), 11, 12 (except the reference therein
25    to Section 2b of  the  Retailers'  Occupation  Tax  Act),  13
26    (except  that  any  reference  to  the  State  shall mean the
27    Authority), 15,  16,  17,  18,  19  and  20  of  the  Service
28    Occupation Tax Act and Section 3-7 of the Uniform Penalty and
29    Interest  Act, as fully as if those provisions were set forth
30    herein.
31        Beginning in 2001, propane and home heating oil  sold  to
32    residential  customers  on  or  after  December 1 and through
33    March 31 of each year are exempt from the tax imposed by this
34    subsection.
 
                            -103-             LRB9203211SMdvA
 1        Beginning in 2002, for bills issued on or after January 1
 2    and through April 30  each  year,  natural  gas  distributed,
 3    supplied,  furnished,  or  sold  to  residential customers is
 4    exempt from the tax imposed by this subsection.
 5        Persons subject to any tax imposed  under  the  authority
 6    granted in this subsection may reimburse themselves for their
 7    serviceman's  tax  liability by separately stating the tax as
 8    an  additional  charge,  which  charge  may  be   stated   in
 9    combination,   in  a  single  amount,  with  State  tax  that
10    servicemen are authorized to collect under  the  Service  Use
11    Tax  Act,  in  accordance  with such bracket schedules as the
12    Department may prescribe.
13        Whenever the Department determines that a  refund  should
14    be  made  under  this  subsection  to  a  claimant instead of
15    issuing a credit memorandum, the Department shall notify  the
16    State  Comptroller,  who  shall cause the warrant to be drawn
17    for the amount specified, and to the  person  named,  in  the
18    notification  from  the Department.  The refund shall be paid
19    by the State Treasurer out of the tax fund  referenced  under
20    paragraph (g) of this Section.
21        Nothing in this paragraph shall be construed to authorize
22    the  Authority to impose a tax upon the privilege of engaging
23    in any business which under the Constitution  of  the  United
24    States may not be made the subject of taxation by the State.
25        (d)  If  a  tax  has been imposed under subsection (b), a
26    use tax shall also be imposed  at  the  same  rate  upon  the
27    privilege  of  using,  in  the metropolitan area, any item of
28    tangible personal property  that  is  purchased  outside  the
29    metropolitan  area  at  retail  from  a retailer, and that is
30    titled or registered at a location  within  the  metropolitan
31    area  with  an  agency  of  this State's government. "Selling
32    price" is defined as in the Use Tax Act.  The  tax  shall  be
33    collected  from persons whose Illinois address for titling or
34    registration purposes is given as being in  the  metropolitan
 
                            -104-             LRB9203211SMdvA
 1    area.   The  tax  shall  be  collected  by  the Department of
 2    Revenue for the Authority. The tax must be paid to the State,
 3    or an exemption  determination  must  be  obtained  from  the
 4    Department  of  Revenue,  before  the title or certificate of
 5    registration for the property may  be  issued.   The  tax  or
 6    proof  of  exemption  may be transmitted to the Department by
 7    way of the State agency with which, or the State officer with
 8    whom, the  tangible  personal  property  must  be  titled  or
 9    registered  if  the  Department and the State agency or State
10    officer determine  that  this  procedure  will  expedite  the
11    processing of applications for title or registration.
12        The  Department  has full power to administer and enforce
13    this paragraph; to collect all taxes, penalties and  interest
14    due hereunder; to dispose of taxes, penalties and interest so
15    collected   in   the  manner  hereinafter  provided;  and  to
16    determine all rights to credit memoranda or  refunds  arising
17    on  account  of  the  erroneous  payment  of  tax, penalty or
18    interest hereunder. In the administration of, and  compliance
19    with,  this  subsection,  the  Department and persons who are
20    subject to this paragraph shall (i)  have  the  same  rights,
21    remedies, privileges, immunities, powers, and duties, (ii) be
22    subject  to  the  same conditions, restrictions, limitations,
23    penalties, exclusions, exemptions, and definitions of  terms,
24    and   (iii)  employ  the  same  modes  of  procedure  as  are
25    prescribed in Sections 2 (except the definition of  "retailer
26    maintaining  a  place  of  business  in this State"), 3, 3-5,
27    3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, 4, 6,  7,  8  (except
28    that the jurisdiction to which the tax shall be a debt to the
29    extent indicated in that Section 8 shall be the Authority), 9
30    (except provisions relating to quarter monthly payments), 10,
31    11,  12,  12a, 12b, 13, 14, 15, 19, 20, 21, and 22 of the Use
32    Tax Act and Section 3-7 of the Uniform Penalty  and  Interest
33    Act,  that are not inconsistent with this paragraph, as fully
34    as if those provisions were set forth herein.
 
                            -105-             LRB9203211SMdvA
 1        Beginning in 2001, propane and home heating oil  sold  to
 2    residential  customers  on  or  after  December 1 and through
 3    March 31 of each year are exempt from the tax imposed by this
 4    subsection.
 5        Beginning in 2002, for bills issued on or after January 1
 6    and through April 30  each  year,  natural  gas  distributed,
 7    supplied,  furnished,  or  sold  to  residential customers is
 8    exempt from the tax imposed by this subsection.
 9        Whenever the Department determines that a  refund  should
10    be  made  under  this  subsection  to  a  claimant instead of
11    issuing a credit memorandum, the Department shall notify  the
12    State  Comptroller, who shall cause the order to be drawn for
13    the amount  specified,  and  to  the  person  named,  in  the
14    notification from the Department. The refund shall be paid by
15    the  State  Treasurer  out  of  the tax fund referenced under
16    paragraph (g) of this Section.
17        (e)  A certificate of registration issued  by  the  State
18    Department  of  Revenue  to  a  retailer under the Retailers'
19    Occupation Tax Act or under the Service  Occupation  Tax  Act
20    shall  permit  the registrant to engage in a business that is
21    taxed under the tax imposed under paragraphs (b), (c), or (d)
22    of this Section  and  no  additional  registration  shall  be
23    required.  A  certificate issued under the Use Tax Act or the
24    Service Use Tax Act shall be applicable with  regard  to  any
25    tax imposed under paragraph (c) of this Section.
26        (f)  The   results   of   any   election   authorizing  a
27    proposition to impose a tax under this Section or effecting a
28    change in the rate of tax shall be certified  by  the  proper
29    election  authorities  and filed with the Illinois Department
30    on or before  the  first  day  of  April.   In  addition,  an
31    ordinance  imposing,  discontinuing, or effecting a change in
32    the rate of tax under this Section shall  be  adopted  and  a
33    certified copy thereof filed with the Department on or before
34    the  first  day  of  April.   After  proper  receipt  of such
 
                            -106-             LRB9203211SMdvA
 1    certifications, the Department shall  proceed  to  administer
 2    and  enforce  this  Section  as of the first day of July next
 3    following such adoption and filing.
 4        (g)  The Department of Revenue shall, upon collecting any
 5    taxes and penalties as provided  in  this  Section,  pay  the
 6    taxes  and  penalties  over to the State Treasurer as trustee
 7    for the Authority. The taxes and penalties shall be held in a
 8    trust fund outside the State Treasury. On or before the  25th
 9    day  of  each calendar month, the Department of Revenue shall
10    prepare and certify  to  the  Comptroller  of  the  State  of
11    Illinois  the amount to be paid to the Authority, which shall
12    be the balance in the fund, less any amount determined by the
13    Department to be necessary for the payment of refunds. Within
14    10 days after receipt by the Comptroller of the certification
15    of the amount to be paid to the  Authority,  the  Comptroller
16    shall  cause  an order to be drawn for payment for the amount
17    in  accordance  with  the   directions   contained   in   the
18    certification.  Amounts  received  from the tax imposed under
19    this  Section  shall  be   used   only   for   the   support,
20    construction,  maintenance, or financing of a facility of the
21    Authority.
22        (h)  When certifying the amount of a monthly disbursement
23    to the Authority under this  Section,  the  Department  shall
24    increase  or  decrease  the amounts by an amount necessary to
25    offset any miscalculation  of  previous  disbursements.   The
26    offset  amount  shall  be  the  amount  erroneously disbursed
27    within the previous 6 months from the time  a  miscalculation
28    is discovered.
29        (i)  This  Section may be cited as the Salem Civic Center
30    Use and Occupation Tax Law.
31    (Source: P.A. 90-328, eff. 1-1-98.)

32        Section 55.  The  Local  Mass  Transit  District  Act  is
33    amended by changing Section 5.01 as follows:
 
                            -107-             LRB9203211SMdvA
 1        (70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
 2        Sec.  5.01.  Metro  East  Mass  Transit District; use and
 3    occupation taxes.
 4        (a)  The Board of Trustees of any Metro East Mass Transit
 5    District may, by ordinance adopted with  the  concurrence  of
 6    two-thirds  of  the  then  trustees,  impose  throughout  the
 7    District  any  or  all of the taxes and fees provided in this
 8    Section.  All taxes and fees imposed under this Section shall
 9    be used only for public mass transportation systems, and  the
10    amount used to provide mass transit service to unserved areas
11    of  the District shall be in the same proportion to the total
12    proceeds as the number of persons residing  in  the  unserved
13    areas  is to the total population of the District.  Except as
14    otherwise provided in this  Act,  taxes  imposed  under  this
15    Section and civil penalties imposed incident thereto shall be
16    collected  and  enforced  by the State Department of Revenue.
17    The Department shall have the power to administer and enforce
18    the taxes  and  to  determine  all  rights  for  refunds  for
19    erroneous payments of the taxes.
20        (b)  The  Board  may  impose  a  Metro  East Mass Transit
21    District Retailers' Occupation Tax upon all  persons  engaged
22    in  the  business  of  selling  tangible personal property at
23    retail in the district  at  a  rate  of  1/4  of  1%,  or  as
24    authorized  under  subsection  (d-5)  of this Section, of the
25    gross receipts from the sales made  in  the  course  of  such
26    business  within  the  district.   The tax imposed under this
27    Section and all civil penalties that may be  assessed  as  an
28    incident thereof shall be collected and enforced by the State
29    Department  of Revenue.  The Department shall have full power
30    to administer and enforce this Section; to collect all  taxes
31    and   penalties   so  collected  in  the  manner  hereinafter
32    provided; and to determine all  rights  to  credit  memoranda
33    arising on account of the erroneous payment of tax or penalty
34    hereunder.   In  the  administration of, and compliance with,
 
                            -108-             LRB9203211SMdvA
 1    this Section, the Department and persons who are  subject  to
 2    this   Section   shall   have   the  same  rights,  remedies,
 3    privileges, immunities, powers and duties, and be subject  to
 4    the  same  conditions,  restrictions, limitations, penalties,
 5    exclusions, exemptions and definitions of  terms  and  employ
 6    the same modes of procedure, as are prescribed in Sections 1,
 7    1a,  1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect
 8    to all provisions therein other than the State rate of  tax),
 9    2c,  3  (except  as to the disposition of taxes and penalties
10    collected), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
11    6, 6a, 6b, 6c, 7, 8, 9,  10,  11,  12,  13,  and  14  of  the
12    Retailers'  Occupation Tax Act and Section 3-7 of the Uniform
13    Penalty and Interest Act, as fully  as  if  those  provisions
14    were set forth herein.
15        Beginning  in  2001, propane and home heating oil sold to
16    residential customers on or  after  December  1  and  through
17    March 31 of each year are exempt from the tax imposed by this
18    subsection.
19        Beginning in 2002, for bills issued on or after January 1
20    and  through  April  30  each  year, natural gas distributed,
21    supplied, furnished, or  sold  to  residential  customers  is
22    exempt from the tax imposed by this subsection.
23        Persons  subject to any tax imposed under the Section may
24    reimburse  themselves  for  their  seller's   tax   liability
25    hereunder  by  separately  stating  the  tax as an additional
26    charge, which charge may  be  stated  in  combination,  in  a
27    single  amount, with State taxes that sellers are required to
28    collect under the  Use  Tax  Act,  in  accordance  with  such
29    bracket schedules as the Department may prescribe.
30        Whenever  the  Department determines that a refund should
31    be made under this Section to a claimant instead of issuing a
32    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
 
                            -109-             LRB9203211SMdvA
 1    notification  from  the Department.  The refund shall be paid
 2    by the State Treasurer out of the  Metro  East  Mass  Transit
 3    District  tax  fund  established  under paragraph (g) of this
 4    Section.
 5        If a tax is imposed under  this  subsection  (b),  a  tax
 6    shall  also  be imposed under subsections (c) and (d) of this
 7    Section.
 8        For the purpose of determining whether a  tax  authorized
 9    under  this  Section  is  applicable,  a  retail  sale,  by a
10    producer of coal or other mineral mined  in  Illinois,  is  a
11    sale  at  retail at the place where the coal or other mineral
12    mined  in  Illinois  is  extracted  from  the  earth.    This
13    paragraph  does not apply to coal or other mineral when it is
14    delivered or shipped by the seller  to  the  purchaser  at  a
15    point  outside  Illinois so that the sale is exempt under the
16    Federal Constitution as  a  sale  in  interstate  or  foreign
17    commerce.
18        Nothing  in  this Section shall be construed to authorize
19    the Metro East Mass Transit District to impose a tax upon the
20    privilege  of  engaging  in  any  business  which  under  the
21    Constitution of the United States may not be made the subject
22    of taxation by this State.
23        (c)  If a tax has been imposed under  subsection  (b),  a
24    Metro East Mass Transit District Service Occupation Tax shall
25    also be imposed upon all persons engaged, in the district, in
26    the  business of making sales of service, who, as an incident
27    to making those sales of service, transfer tangible  personal
28    property  within the District, either in the form of tangible
29    personal property or  in  the  form  of  real  estate  as  an
30    incident to a sale of service. The tax rate shall be 1/4%, or
31    as  authorized under subsection (d-5) of this Section, of the
32    selling price of tangible personal  property  so  transferred
33    within  the  district.   The tax imposed under this paragraph
34    and all civil penalties that may be assessed as  an  incident
 
                            -110-             LRB9203211SMdvA
 1    thereof   shall  be  collected  and  enforced  by  the  State
 2    Department of Revenue. The Department shall have  full  power
 3    to  administer  and  enforce  this  paragraph; to collect all
 4    taxes and penalties due hereunder; to dispose  of  taxes  and
 5    penalties  so  collected  in the manner hereinafter provided;
 6    and to determine all rights to credit  memoranda  arising  on
 7    account of the erroneous payment of tax or penalty hereunder.
 8    In the administration of, and compliance with this paragraph,
 9    the  Department and persons who are subject to this paragraph
10    shall have the same rights, remedies, privileges, immunities,
11    powers and duties, and be subject  to  the  same  conditions,
12    restrictions,  limitations, penalties, exclusions, exemptions
13    and definitions  of  terms  and  employ  the  same  modes  of
14    procedure  as are prescribed in Sections 1a-1, 2 (except that
15    the  reference  to  State  in  the  definition  of   supplier
16    maintaining  a place of business in this State shall mean the
17    Authority), 2a, 3 through 3-50 (in respect to all  provisions
18    therein other than the State rate of tax), 4 (except that the
19    reference  to  the  State shall be to the Authority), 5, 7, 8
20    (except that the jurisdiction to which the  tax  shall  be  a
21    debt  to  the extent indicated in that Section 8 shall be the
22    District), 9 (except as  to  the  disposition  of  taxes  and
23    penalties collected, and except that the returned merchandise
24    credit  for this tax may not be taken against any State tax),
25    10, 11, 12 (except the reference therein to Section 2b of the
26    Retailers' Occupation Tax Act), 13 (except that any reference
27    to the State shall mean the District), the first paragraph of
28    Section 15, 16, 17, 18, 19 and 20 of the  Service  Occupation
29    Tax  Act  and Section 3-7 of the Uniform Penalty and Interest
30    Act, as fully as if those provisions were set forth herein.
31        Beginning in 2001, propane and home heating oil  sold  to
32    residential  customers  on  or  after  December 1 and through
33    March 31 of each year are exempt from the tax imposed by this
34    subsection.
 
                            -111-             LRB9203211SMdvA
 1        Beginning in 2002, for bills issued on or after January 1
 2    and through April 30  each  year,  natural  gas  distributed,
 3    supplied,  furnished,  or  sold  to  residential customers is
 4    exempt from the tax imposed by this subsection.
 5        Persons subject to any tax imposed  under  the  authority
 6    granted  in this paragraph may reimburse themselves for their
 7    serviceman's tax liability hereunder  by  separately  stating
 8    the  tax  as an additional charge, which charge may be stated
 9    in combination, in a  single  amount,  with  State  tax  that
10    servicemen  are  authorized  to collect under the Service Use
11    Tax Act, in accordance with such  bracket  schedules  as  the
12    Department may prescribe.
13        Whenever  the  Department determines that a refund should
14    be made under this paragraph to a claimant instead of issuing
15    a credit memorandum, the Department shall  notify  the  State
16    Comptroller,  who shall cause the warrant to be drawn for the
17    amount  specified,  and  to  the   person   named,   in   the
18    notification  from  the Department.  The refund shall be paid
19    by the State Treasurer out of the  Metro  East  Mass  Transit
20    District  tax  fund  established  under paragraph (g) of this
21    Section.
22        Nothing in this paragraph shall be construed to authorize
23    the District to impose a tax upon the privilege  of  engaging
24    in  any  business  which under the Constitution of the United
25    States may not be made the subject of taxation by the State.
26        (d)  If a tax has been imposed under  subsection  (b),  a
27    Metro  East  Mass  Transit  District  Use  Tax  shall also be
28    imposed upon the privilege of using,  in  the  district,  any
29    item  of tangible personal property that is purchased outside
30    the district at retail from a retailer, and that is titled or
31    registered with an agency of this State's  government,  at  a
32    rate of 1/4%, or as authorized under subsection (d-5) of this
33    Section,  of  the  selling  price  of  the  tangible personal
34    property within the District, as "selling price"  is  defined
 
                            -112-             LRB9203211SMdvA
 1    in  the Use Tax Act.  The tax shall be collected from persons
 2    whose Illinois address for titling or  registration  purposes
 3    is  given  as  being  in  the  District.   The  tax  shall be
 4    collected by the Department of Revenue  for  the  Metro  East
 5    Mass Transit District.  The tax must be paid to the State, or
 6    an   exemption   determination  must  be  obtained  from  the
 7    Department of Revenue, before the  title  or  certificate  of
 8    registration  for  the  property  may  be issued.  The tax or
 9    proof of exemption may be transmitted to  the  Department  by
10    way of the State agency with which, or the State officer with
11    whom,  the  tangible  personal  property  must  be  titled or
12    registered if the Department and the State  agency  or  State
13    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  paragraph; 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    to  determine  all  rights  to  credit  memoranda  or refunds
20    arising on account of the erroneous payment of  tax,  penalty
21    or   interest   hereunder.  In  the  administration  of,  and
22    compliance with, this paragraph, the Department  and  persons
23    who are subject to this paragraph shall have the same rights,
24    remedies,  privileges,  immunities, powers and duties, and be
25    subject to the same  conditions,  restrictions,  limitations,
26    penalties,  exclusions,  exemptions  and definitions of terms
27    and employ the same modes of procedure, as are prescribed  in
28    Sections  2 (except the definition of "retailer maintaining a
29    place of business in this State"),  3  through  3-80  (except
30    provisions  pertaining  to  the State rate of tax, and except
31    provisions concerning collection or refunding of the  tax  by
32    retailers),  4,  11, 12, 12a, 14, 15, 19 (except the portions
33    pertaining  to  claims  by  retailers  and  except  the  last
34    paragraph concerning refunds), 20, 21 and 22 of the  Use  Tax
 
                            -113-             LRB9203211SMdvA
 1    Act  and Section 3-7 of the Uniform Penalty and Interest Act,
 2    that are not inconsistent with this paragraph, as fully as if
 3    those provisions were set forth herein.
 4        Beginning in 2001, propane and home heating oil  sold  to
 5    residential  customers  on  or  after  December 1 and through
 6    March 31 of each year are exempt from the tax imposed by this
 7    subsection.
 8        Beginning in 2002, for bills issued on or after January 1
 9    and through April 30  each  year,  natural  gas  distributed,
10    supplied,  furnished,  or  sold  to  residential customers is
11    exempt from the tax imposed by this subsection.
12        Whenever the Department determines that a  refund  should
13    be made under this paragraph to a claimant instead of issuing
14    a  credit  memorandum,  the Department shall notify the State
15    Comptroller, who shall cause the order to be  drawn  for  the
16    amount   specified,   and   to   the  person  named,  in  the
17    notification from the Department. The refund shall be paid by
18    the State Treasurer  out  of  the  Metro  East  Mass  Transit
19    District  tax  fund  established  under paragraph (g) of this
20    Section.
21        (d-5)  The county board of any  county  participating  in
22    the  Metro  East  Mass  Transit  District  may  authorize, by
23    ordinance, a referendum on the question of  whether  the  tax
24    rates  for  the  Metro  East Mass Transit District Retailers'
25    Occupation Tax, the Metro East Mass Transit District  Service
26    Occupation  Tax, and the Metro East Mass Transit District Use
27    Tax for the District should be increased from 0.25% to 0.75%.
28    Upon adopting the ordinance, the county board  shall  certify
29    the  proposition  to  the proper election officials who shall
30    submit the proposition to the voters of the District  at  the
31    next election, in accordance with the general election law.
32        The  proposition  shall be in substantially the following
33    form:
34             Shall the tax rates for the Metro East Mass  Transit
 
                            -114-             LRB9203211SMdvA
 1        District  Retailers'  Occupation Tax, the Metro East Mass
 2        Transit District Service Occupation Tax,  and  the  Metro
 3        East  Mass  Transit  District  Use Tax be  increased from
 4        0.25% to 0.75%?
 5        The votes shall be  recorded  as  "YES"  or  "NO".  If  a
 6    majority  of  all  votes  cast on the proposition are for the
 7    increase in the  tax  rates,  the  Metro  East  Mass  Transit
 8    District  shall  begin  imposing  the  increased rates in the
 9    District,  and  the  Department  of   Revenue   shall   begin
10    collecting  the  increased  amounts,  as  provided under this
11    Section.  An  ordinance  imposing  or  discontinuing  a   tax
12    hereunder  or effecting a change in the rate thereof shall be
13    adopted  and  a  certified  copy  thereof  filed   with   the
14    Department  on  or before the first day of October, whereupon
15    the Department shall proceed to administer and  enforce  this
16    Section  as  of  the  first day of January next following the
17    adoption and filing.
18        If the voters  have  approved  a  referendum  under  this
19    subsection, before November 1, 1994, to increase the tax rate
20    under  this  subsection, the Metro East Mass Transit District
21    Board of Trustees may adopt by a majority vote  an  ordinance
22    at  any  time  before  January 1, 1995 that excludes from the
23    rate increase tangible personal property that  is  titled  or
24    registered  with  an  agency of this State's government.  The
25    ordinance excluding titled or  registered  tangible  personal
26    property  from  the  rate  increase  must  be  filed with the
27    Department at least 15 days before its effective date. At any
28    time after adopting an  ordinance  excluding  from  the  rate
29    increase   tangible  personal  property  that  is  titled  or
30    registered with an agency of  this  State's  government,  the
31    Metro  East Mass Transit District Board of Trustees may adopt
32    an ordinance applying the  rate  increase  to  that  tangible
33    personal  property.  The  ordinance  shall  be adopted, and a
34    certified copy of that ordinance  shall  be  filed  with  the
 
                            -115-             LRB9203211SMdvA
 1    Department,  on or before October 1, whereupon the Department
 2    shall proceed to administer and  enforce  the  rate  increase
 3    against  tangible personal property titled or registered with
 4    an agency of this State's  government  as  of  the  following
 5    January  1.   After  December  31,  1995,  any reimposed rate
 6    increase in effect under  this  subsection  shall  no  longer
 7    apply to tangible personal property titled or registered with
 8    an  agency  of this State's government.  Beginning January 1,
 9    1996, the Board of Trustees of any Metro  East  Mass  Transit
10    District  may  never  reimpose a previously excluded tax rate
11    increase on tangible personal property titled  or  registered
12    with an agency of this State's government.
13        (d-6)  If  the  Board  of Trustees of any Metro East Mass
14    Transit District has imposed a rate increase under subsection
15    (d-5) and filed an ordinance with the Department  of  Revenue
16    excluding  titled  property  from  the higher rate, then that
17    Board may, by  ordinance  adopted  with  the  concurrence  of
18    two-thirds  of  the  then  trustees,  impose  throughout  the
19    District  a  fee.  The fee on the excluded property shall not
20    exceed $20 per retail transaction or an amount equal  to  the
21    amount  of  tax  excluded,  whichever  is  less,  on tangible
22    personal property that is titled or registered with an agency
23    of this State's government.   The Board of  Trustees  of  any
24    Metro  East  Mass  Transit  District shall have full power to
25    administer and enforce this subsection and to  determine  all
26    rights  to  credit memoranda or refunds arising on account of
27    the erroneous payment of the fee hereunder.  The Board  shall
28    proceed  to  administer and enforce this subsection as of the
29    first day of the second month following the adoption  of  the
30    ordinance.
31        (d-7)  If  a fee has been imposed under subsection (d-6),
32    a fee shall also be imposed upon the privilege of  using,  in
33    the  district, any item of tangible personal property that is
34    titled  or  registered  with  any  agency  of  this   State's
 
                            -116-             LRB9203211SMdvA
 1    government,  in  an  amount  equal  to  the amount of the fee
 2    imposed under subsection (d-6).  The Board of Trustees of any
 3    Metro East Mass Transit District shall  have  full  power  to
 4    administer  and  enforce this subsection and to determine all
 5    rights to credit memoranda or refunds arising on  account  of
 6    the  erroneous payment of the fee hereunder.  The Board shall
 7    proceed   to   administer   and   enforce   this   subsection
 8    concurrently with the administration of the fee imposed under
 9    subsection (d-6).
10        (d-8)  No item of titled property  shall  be  subject  to
11    both  the  higher  rate approved by referendum, as authorized
12    under subsection (d-5), and any fee imposed under  subsection
13    (d-6) or (d-7).
14        (d-9)  If  fees have been imposed under subsections (d-6)
15    and (d-7), the Board shall forward a copy  of  the  ordinance
16    adopting  such  fees,  which  shall  include all zip codes in
17    whole or in part within the boundaries of  the  district,  to
18    the  Secretary  of  State within thirty days.  By the 25th of
19    each month, the Secretary of State shall subsequently provide
20    the Board with a list  of  identifiable  retail  transactions
21    subject to the .25% rate occurring within the zip codes which
22    are in whole or in part within the boundaries of the district
23    and  a  list  of  title applications for addresses within the
24    boundaries of the district for the previous month.
25        (d-10)  In  the  event  that  a  retailer  fails  to  pay
26    applicable  fees  within  30  days  of  the   date   of   the
27    transaction,  a  penalty shall be assessed at the rate of 25%
28    of the amount of  fees.   Interest  on  both  late  fees  and
29    penalties shall be assessed at the rate of 1% per month.  All
30    fees, penalties, and attorney fees shall constitute a lien on
31    the personal and real property of the retailer.  The Board of
32    Trustees  of  any Metro East Transit District shall have full
33    power to administer and enforce this subsection.
34        (e)  A certificate of registration issued  by  the  State
 
                            -117-             LRB9203211SMdvA
 1    Department  of  Revenue  to  a  retailer under the Retailers'
 2    Occupation Tax Act or under the Service  Occupation  Tax  Act
 3    shall  permit  the registrant to engage in a business that is
 4    taxed under the tax imposed under paragraphs (b), (c) or  (d)
 5    of  this  Section  and  no  additional  registration shall be
 6    required under the tax. A certificate issued  under  the  Use
 7    Tax  Act  or the Service Use Tax Act shall be applicable with
 8    regard to  any  tax  imposed  under  paragraph  (c)  of  this
 9    Section.
10        (f)  The  Board  may  impose a replacement vehicle tax of
11    $50 on any passenger car, as defined in Section 1-157 of  the
12    Illinois  Vehicle Code, purchased within the district area by
13    or on behalf of an insurance company to replace  a  passenger
14    car of an insured person in settlement of a total loss claim.
15    The tax imposed may not become effective before the first day
16    of  the month following the passage of the ordinance imposing
17    the tax and receipt of a certified copy of the  ordinance  by
18    the  Department  of Revenue.  The Department of Revenue shall
19    collect the tax for the district in accordance with  Sections
20    3-2002 and 3-2003 of the Illinois Vehicle Code.
21        The  Department  shall  immediately pay over to the State
22    Treasurer,  ex  officio,  as  trustee,  all  taxes  collected
23    hereunder.  On or before the 25th day of each calendar month,
24    the Department shall prepare and certify to  the  Comptroller
25    the  disbursement of stated sums of money to named districts,
26    the districts to be those  from  which  retailers  have  paid
27    taxes  or  penalties  hereunder  to the Department during the
28    second preceding calendar month.  The amount to  be  paid  to
29    each  district shall be the amount collected hereunder during
30    the second preceding calendar month by the  Department,  less
31    any  amount  determined by the Department to be necessary for
32    the payment of refunds.  Within 10 days after receipt by  the
33    Comptroller   of   the   disbursement  certification  to  the
34    districts, provided for in this Section to be  given  to  the
 
                            -118-             LRB9203211SMdvA
 1    Comptroller  by  the  Department, the Comptroller shall cause
 2    the  orders  to  be  drawn  for  the  respective  amounts  in
 3    accordance   with   the   directions   contained    in    the
 4    certification.
 5        (g)  Any  ordinance  imposing  or  discontinuing  any tax
 6    under this Section shall be  adopted  and  a  certified  copy
 7    thereof  filed  with  the  Department  on  or  before June 1,
 8    whereupon  the  Department  of  Revenue  shall   proceed   to
 9    administer  and  enforce  this Section on behalf of the Metro
10    East Mass Transit District as of September 1  next  following
11    such  adoption  and  filing.   Beginning  January 1, 1992, an
12    ordinance or resolution imposing  or  discontinuing  the  tax
13    hereunder shall be adopted and a certified copy thereof filed
14    with  the  Department  on  or  before  the first day of July,
15    whereupon the Department  shall  proceed  to  administer  and
16    enforce  this  Section  as  of  the first day of October next
17    following such adoption and  filing.   Beginning  January  1,
18    1993, except as provided in subsection (d-5) of this Section,
19    an  ordinance or resolution imposing or discontinuing the tax
20    hereunder shall be adopted and a certified copy thereof filed
21    with the Department on or before the first  day  of  October,
22    whereupon  the  Department  shall  proceed  to administer and
23    enforce this Section as of the  first  day  of  January  next
24    following such adoption and filing.
25        (h)  The   State   Department   of  Revenue  shall,  upon
26    collecting any taxes as provided in  this  Section,  pay  the
27    taxes  over  to  the  State  Treasurer  as  trustee  for  the
28    District. The taxes shall be held in a trust fund outside the
29    State  Treasury.  On  or before the 25th day of each calendar
30    month, the State Department  of  Revenue  shall  prepare  and
31    certify  to  the  Comptroller  of  the  State of Illinois the
32    amount to be paid to the District, which shall  be  the  then
33    balance  in  the  fund,  less  any  amount  determined by the
34    Department to be necessary for the payment of refunds. Within
 
                            -119-             LRB9203211SMdvA
 1    10 days after receipt by the Comptroller of the certification
 2    of the amount to be paid to  the  District,  the  Comptroller
 3    shall  cause  an order to be drawn for payment for the amount
 4    in accordance with the direction in the certification.
 5    (Source: P.A. 91-51, eff. 6-30-99.)

 6        Section 60.  The Regional Transportation Authority Act is
 7    amended by changing Section 4.03 as follows:

 8        (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
 9        Sec. 4.03.  Taxes.
10        (a)  In order to carry out any of the powers or  purposes
11    of the Authority, the Board may by ordinance adopted with the
12    concurrence of 9 of the then Directors, impose throughout the
13    metropolitan  region any or all of the taxes provided in this
14    Section. Except as otherwise  provided  in  this  Act,  taxes
15    imposed  under  this  Section  and  civil  penalties  imposed
16    incident thereto shall be collected and enforced by the State
17    Department of Revenue. The Department shall have the power to
18    administer  and enforce the taxes and to determine all rights
19    for refunds for erroneous payments of the taxes.
20        (b)  The Board may impose  a  public  transportation  tax
21    upon  all  persons  engaged in the metropolitan region in the
22    business of selling at retail motor  fuel  for  operation  of
23    motor  vehicles  upon  public highways. The tax shall be at a
24    rate not to exceed 5% of the gross receipts from the sales of
25    motor fuel in the course of the business.  As  used  in  this
26    Act,  the term "motor fuel" shall have the same meaning as in
27    the Motor Fuel Tax Act.  The Board may provide for details of
28    the tax.  The provisions of any tax shall conform, as closely
29    as may be practicable, to the  provisions  of  the  Municipal
30    Retailers  Occupation  Tax Act, including without limitation,
31    conformity to penalties with respect to the tax  imposed  and
32    as  to  the  powers  of  the  State  Department of Revenue to
 
                            -120-             LRB9203211SMdvA
 1    promulgate and enforce rules and regulations relating to  the
 2    administration  and  enforcement of the provisions of the tax
 3    imposed, except that reference in the Act to any municipality
 4    shall refer to the Authority and the  tax  shall  be  imposed
 5    only  with regard to receipts from sales of motor fuel in the
 6    metropolitan region, at rates as limited by this Section.
 7        Beginning in 2001, propane and home heating oil  sold  to
 8    residential  customers  on  or  after  December 1 and through
 9    March 31 of each year are exempt from the tax imposed by this
10    subsection.
11        Beginning in 2002, for bills issued on or after January 1
12    and through April 30  each  year,  natural  gas  distributed,
13    supplied,  furnished,  or  sold  to  residential customers is
14    exempt from the tax imposed by this subsection.
15        (c)  In connection with the tax imposed  under  paragraph
16    (b)  of  this  Section  the  Board  may impose a tax upon the
17    privilege of using in the metropolitan region motor fuel  for
18    the  operation  of  a motor vehicle upon public highways, the
19    tax to be at a rate not in excess of the rate of tax  imposed
20    under  paragraph  (b) of this Section.  The Board may provide
21    for details of the tax.
22        Beginning in 2001, propane and home heating oil  sold  to
23    residential  customers  on  or  after  December 1 and through
24    March 31 of each year are exempt from the tax imposed by this
25    subsection.
26        Beginning in 2002, for bills issued on or after January 1
27    and through April 30  each  year,  natural  gas  distributed,
28    supplied,  furnished,  or  sold  to  residential customers is
29    exempt from the tax imposed by this subsection.
30        (d)  The Board may impose a  motor  vehicle  parking  tax
31    upon  the  privilege  of parking motor vehicles at off-street
32    parking facilities in the metropolitan region at which a  fee
33    is charged, and may provide for reasonable classifications in
34    and exemptions to the tax, for administration and enforcement
 
                            -121-             LRB9203211SMdvA
 1    thereof  and  for  civil penalties and refunds thereunder and
 2    may  provide  criminal  penalties  thereunder,  the   maximum
 3    penalties  not  to  exceed  the  maximum  criminal  penalties
 4    provided  in the Retailers' Occupation Tax Act. The Authority
 5    may collect and enforce the tax itself or  by  contract  with
 6    any  unit  of  local  government.   The  State  Department of
 7    Revenue shall have no responsibility for the  collection  and
 8    enforcement  unless  the Department agrees with the Authority
 9    to undertake the collection and enforcement.  As used in this
10    paragraph, the term "parking facility" means a  parking  area
11    or  structure  having parking spaces for more than 2 vehicles
12    at which motor vehicles are permitted to park in  return  for
13    an  hourly, daily, or other periodic fee, whether publicly or
14    privately owned, but does not include  parking  spaces  on  a
15    public  street,  the  use  of  which  is regulated by parking
16    meters.
17        (e)  The  Board  may  impose  a  Regional  Transportation
18    Authority Retailers' Occupation Tax upon all persons  engaged
19    in  the  business  of  selling  tangible personal property at
20    retail in the metropolitan region.  In Cook  County  the  tax
21    rate shall be 1% of the gross receipts from sales of food for
22    human  consumption  that  is  to be consumed off the premises
23    where it is sold (other than alcoholic beverages, soft drinks
24    and food that has been prepared  for  immediate  consumption)
25    and   prescription   and  nonprescription  medicines,  drugs,
26    medical appliances  and  insulin,  urine  testing  materials,
27    syringes and needles used by diabetics, and 3/4% of the gross
28    receipts  from other taxable sales made in the course of that
29    business.  In DuPage, Kane, Lake, McHenry, and Will Counties,
30    the tax rate shall be 1/4% of the  gross  receipts  from  all
31    taxable  sales  made in the course of that business.  The tax
32    imposed under this Section and all civil penalties  that  may
33    be  assessed  as  an  incident thereof shall be collected and
34    enforced by the State Department of Revenue.  The  Department
 
                            -122-             LRB9203211SMdvA
 1    shall have full power to administer and enforce this Section;
 2    to collect all taxes and penalties so collected in the manner
 3    hereinafter  provided;  and to determine all rights to credit
 4    memoranda arising on account of the erroneous payment of  tax
 5    or   penalty   hereunder.   In  the  administration  of,  and
 6    compliance with this Section, the Department and persons  who
 7    are  subject  to  this  Section  shall  have the same rights,
 8    remedies, privileges, immunities, powers and duties,  and  be
 9    subject  to  the  same conditions, restrictions, limitations,
10    penalties, exclusions, exemptions and definitions  of  terms,
11    and  employ the same modes of procedure, as are prescribed in
12    Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through  2-65
13    (in  respect  to  all provisions therein other than the State
14    rate of tax), 2c, 3 (except as to the  disposition  of  taxes
15    and  penalties  collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
16    5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13
17    of the Retailers' Occupation Tax Act and Section 3-7  of  the
18    Uniform  Penalty  and  Interest  Act,  as  fully  as if those
19    provisions were set forth herein.
20        Beginning in 2001, propane and home heating oil  sold  to
21    residential  customers  on  or  after  December 1 and through
22    March 31 of each year are exempt from the tax imposed by this
23    subsection.
24        Beginning in 2002, for bills issued on or after January 1
25    and through April 30  each  year,  natural  gas  distributed,
26    supplied,  furnished,  or  sold  to  residential customers is
27    exempt from the tax imposed by this subsection.
28        Persons subject to any tax imposed  under  the  authority
29    granted  in  this  Section may reimburse themselves for their
30    seller's tax liability hereunder by  separately  stating  the
31    tax  as  an  additional charge, which charge may be stated in
32    combination in a single amount with State taxes that  sellers
33    are  required  to  collect  under  the Use Tax Act, under any
34    bracket schedules the Department may prescribe.
 
                            -123-             LRB9203211SMdvA
 1        Whenever the Department determines that a  refund  should
 2    be 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 warrant 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
 7    by  the  State  Treasurer  out of the Regional Transportation
 8    Authority tax fund established under paragraph  (n)  of  this
 9    Section.
10        If  a  tax  is  imposed  under this subsection (e), a tax
11    shall also be imposed under subsections (f) and (g)  of  this
12    Section.
13        For  the  purpose of determining whether a tax authorized
14    under this Section is applicable, a retail sale by a producer
15    of coal or other mineral mined in  Illinois,  is  a  sale  at
16    retail  at the place where the coal or other mineral mined in
17    Illinois is extracted from the earth. This paragraph does not
18    apply to coal or  other  mineral  when  it  is  delivered  or
19    shipped  by  the  seller  to the purchaser at a point outside
20    Illinois so  that  the  sale  is  exempt  under  the  Federal
21    Constitution as a sale in interstate or foreign commerce.
22        Nothing  in  this Section shall be construed to authorize
23    the Regional Transportation Authority to impose  a  tax  upon
24    the  privilege  of  engaging  in  any business that under the
25    Constitution of the United States may not be made the subject
26    of taxation by this State.
27        (f)  If a tax has been imposed under paragraph (e), a tax
28    shall also be  imposed  upon  all  persons  engaged,  in  the
29    metropolitan  region  in  the  business  of  making  sales of
30    service, who as an incident to making the sales  of  service,
31    transfer  tangible  personal property within the metropolitan
32    region, either in the form of tangible personal  property  or
33    in  the  form  of  real  estate  as  an incident to a sale of
34    service.  In Cook County, the tax rate shall be:  (1)  1%  of
 
                            -124-             LRB9203211SMdvA
 1    the  serviceman's  cost  price of food prepared for immediate
 2    consumption and transferred incident to  a  sale  of  service
 3    subject  to  the service occupation tax by an entity licensed
 4    under the Hospital Licensing Act or the Nursing Home Care Act
 5    that is located in the metropolitan region;  (2)  1%  of  the
 6    selling  price  of  food  for human consumption that is to be
 7    consumed off the  premises  where  it  is  sold  (other  than
 8    alcoholic  beverages,  soft  drinks  and  food  that has been
 9    prepared for  immediate  consumption)  and  prescription  and
10    nonprescription  medicines,  drugs,  medical  appliances  and
11    insulin,  urine  testing materials, syringes and needles used
12    by diabetics; and (3) 3/4% of the selling  price  from  other
13    taxable  sales of tangible personal property transferred.  In
14    DuPage, Kane, Lake, McHenry and Will Counties the rate  shall
15    be  1/4%  of  the  selling  price  of  all  tangible personal
16    property transferred.
17        The tax  imposed  under  this  paragraph  and  all  civil
18    penalties  that  may be assessed as an incident thereof shall
19    be collected and enforced by the State Department of Revenue.
20    The Department  shall  have  full  power  to  administer  and
21    enforce  this  paragraph;  to collect all taxes and penalties
22    due hereunder; to dispose of taxes and penalties collected in
23    the manner hereinafter provided; and to determine all  rights
24    to  credit  memoranda  arising  on  account  of the erroneous
25    payment of tax or penalty hereunder.  In  the  administration
26    of  and  compliance  with  this paragraph, the Department and
27    persons who are subject to this paragraph shall have the same
28    rights, remedies, privileges, immunities, powers and  duties,
29    and   be   subject  to  the  same  conditions,  restrictions,
30    limitations,   penalties,    exclusions,    exemptions    and
31    definitions of terms, and employ the same modes of procedure,
32    as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (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
 
                            -125-             LRB9203211SMdvA
 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),  10,  11, 12 (except the reference
 7    therein to Section 2b of the Retailers' Occupation Tax  Act),
 8    13  (except  that  any  reference to the State shall mean the
 9    Authority), the first paragraph of Section 15, 16, 17, 18, 19
10    and 20 of the Service Occupation Tax Act and Section  3-7  of
11    the  Uniform  Penalty  and Interest Act, as fully as if those
12    provisions were set forth herein.
13        Beginning in 2001, propane and home heating oil  sold  to
14    residential  customers  on  or  after  December 1 and through
15    March 31 of each year are exempt from the tax imposed by this
16    subsection.
17        Beginning in 2002, for bills issued on or after January 1
18    and through April 30  each  year,  natural  gas  distributed,
19    supplied,  furnished,  or  sold  to  residential customers is
20    exempt from the tax imposed by this subsection.
21        Persons subject to any tax imposed  under  the  authority
22    granted  in this paragraph may reimburse themselves for their
23    serviceman's tax liability hereunder  by  separately  stating
24    the tax as an additional charge, that charge may be stated in
25    combination in a single amount with State tax that servicemen
26    are  authorized  to  collect  under  the Service Use Tax Act,
27    under any bracket schedules the 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 notification
33    from  the  Department.  The refund shall be paid by the State
34    Treasurer out of the Regional  Transportation  Authority  tax
 
                            -126-             LRB9203211SMdvA
 1    fund established under paragraph (n) of this Section.
 2        Nothing in this paragraph shall be construed to authorize
 3    the  Authority to impose a tax upon the privilege of engaging
 4    in any business that under the  Constitution  of  the  United
 5    States may not be made the subject of taxation by the State.
 6        (g)  If a tax has been imposed under paragraph (e), a tax
 7    shall  also  be  imposed  upon  the privilege of using in the
 8    metropolitan region, any item of tangible  personal  property
 9    that  is  purchased outside the metropolitan region at retail
10    from a retailer, and that is titled  or  registered  with  an
11    agency  of  this  State's government.  In Cook County the tax
12    rate shall be 3/4% of  the  selling  price  of  the  tangible
13    personal  property,  as "selling price" is defined in the Use
14    Tax Act.  In DuPage, Kane, Lake, McHenry  and  Will  counties
15    the  tax  rate  shall  be  1/4%  of  the selling price of the
16    tangible personal property, as "selling price" is defined  in
17    the  Use  Tax  Act.   The tax shall be collected from persons
18    whose Illinois address for titling or  registration  purposes
19    is  given  as being in the metropolitan region. The tax shall
20    be collected by the Department of Revenue  for  the  Regional
21    Transportation Authority.  The tax must be paid to the State,
22    or  an  exemption  determination  must  be  obtained from the
23    Department of Revenue, before the  title  or  certificate  of
24    registration for the property may be issued. The tax or proof
25    of  exemption  may be transmitted to the Department by way of
26    the State agency with which, or the State officer with  whom,
27    the  tangible  personal property must be titled or registered
28    if the Department and  the  State  agency  or  State  officer
29    determine that this procedure will expedite the processing of
30    applications for title or registration.
31        The  Department  shall  have full power to administer and
32    enforce this paragraph; to collect all taxes,  penalties  and
33    interest  due  hereunder;  to dispose of taxes, penalties and
34    interest collected in the manner hereinafter provided; and to
 
                            -127-             LRB9203211SMdvA
 1    determine all rights to credit memoranda or  refunds  arising
 2    on  account  of  the  erroneous  payment  of  tax, penalty or
 3    interest hereunder. In the administration of  and  compliance
 4    with  this  paragraph,  the  Department  and  persons who are
 5    subject  to  this  paragraph  shall  have  the  same  rights,
 6    remedies, privileges, immunities, powers and duties,  and  be
 7    subject  to  the  same conditions, restrictions, limitations,
 8    penalties, exclusions, exemptions and  definitions  of  terms
 9    and  employ the same modes of procedure, as are prescribed in
10    Sections 2 (except the definition of "retailer maintaining  a
11    place  of  business  in  this State"), 3 through 3-80 (except
12    provisions pertaining to the State rate of  tax,  and  except
13    provisions  concerning  collection or refunding of the tax by
14    retailers), 4, 11, 12, 12a, 14, 15, 19 (except  the  portions
15    pertaining  to  claims  by  retailers  and  except  the  last
16    paragraph  concerning  refunds), 20, 21 and 22 of the Use Tax
17    Act, and are not inconsistent with this paragraph,  as  fully
18    as if those provisions were set forth herein.
19        Beginning  in  2001, propane and home heating oil sold to
20    residential customers on or  after  December  1  and  through
21    March 31 of each year are exempt from the tax imposed by this
22    subsection.
23        Beginning in 2002, for bills issued on or after January 1
24    and  through  April  30  each  year, natural gas distributed,
25    supplied, furnished, or  sold  to  residential  customers  is
26    exempt from the tax imposed by this subsection.
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 order to be drawn for the
31    amount specified, and to the person named in the notification
32    from the Department. The refund shall be paid  by  the  State
33    Treasurer  out  of  the Regional Transportation Authority tax
34    fund established under paragraph (n) of this Section.
 
                            -128-             LRB9203211SMdvA
 1        (h)  The Authority may impose a replacement  vehicle  tax
 2    of  $50  on  any passenger car as defined in Section 1-157 of
 3    the Illinois Vehicle Code purchased within  the  metropolitan
 4    region  by  or on behalf of an insurance company to replace a
 5    passenger car of an insured person in settlement of  a  total
 6    loss  claim.  The tax imposed may not become effective before
 7    the first day of the  month  following  the  passage  of  the
 8    ordinance imposing the tax and receipt of a certified copy of
 9    the  ordinance  by the Department of Revenue.  The Department
10    of Revenue  shall  collect  the  tax  for  the  Authority  in
11    accordance  with  Sections  3-2002 and 3-2003 of the Illinois
12    Vehicle Code.
13        The Department shall immediately pay over  to  the  State
14    Treasurer,  ex  officio,  as  trustee,  all  taxes  collected
15    hereunder.  On or before the 25th day of each calendar month,
16    the  Department  shall prepare and certify to the Comptroller
17    the disbursement of stated sums of money  to  the  Authority.
18    The  amount  to  be paid to the Authority shall be the amount
19    collected hereunder  during  the  second  preceding  calendar
20    month  by  the  Department, less any amount determined by the
21    Department to  be  necessary  for  the  payment  of  refunds.
22    Within  10  days  after  receipt  by  the  Comptroller of the
23    disbursement certification to the Authority provided  for  in
24    this   Section   to  be  given  to  the  Comptroller  by  the
25    Department, the Comptroller shall  cause  the  orders  to  be
26    drawn  for  that  amount  in  accordance  with the directions
27    contained in the certification.
28        (i)  The Board may not impose any other taxes  except  as
29    it may from time to time be authorized by law to impose.
30        (j)  A  certificate  of  registration issued by the State
31    Department of Revenue to  a  retailer  under  the  Retailers'
32    Occupation  Tax  Act  or under the Service Occupation Tax Act
33    shall permit the registrant to engage in a business  that  is
34    taxed under the tax imposed under paragraphs (b), (e), (f) or
 
                            -129-             LRB9203211SMdvA
 1    (g)  of  this Section and no additional registration shall be
 2    required under the tax.  A certificate issued under  the  Use
 3    Tax  Act  or the Service Use Tax Act shall be applicable with
 4    regard to  any  tax  imposed  under  paragraph  (c)  of  this
 5    Section.
 6        (k)  The  provisions  of  any tax imposed under paragraph
 7    (c) of this Section  shall  conform  as  closely  as  may  be
 8    practicable  to  the provisions of the Use Tax Act, including
 9    without limitation conformity as to penalties with respect to
10    the tax imposed and as to the powers of the State  Department
11    of  Revenue  to  promulgate and enforce rules and regulations
12    relating  to  the  administration  and  enforcement  of   the
13    provisions  of  the  tax  imposed. The taxes shall be imposed
14    only on use within the metropolitan region and  at  rates  as
15    provided in the paragraph.
16        (l)  The  Board  in  imposing  any  tax  as  provided  in
17    paragraphs  (b) and (c) of this Section, shall, after seeking
18    the advice of the State Department of Revenue, provide  means
19    for retailers, users or purchasers of motor fuel for purposes
20    other  than  those  with  regard  to  which  the taxes may be
21    imposed as provided in those paragraphs to receive refunds of
22    taxes improperly paid, which provisions may  be  at  variance
23    with  the refund provisions as applicable under the Municipal
24    Retailers  Occupation  Tax  Act.   The  State  Department  of
25    Revenue may provide  for  certificates  of  registration  for
26    users  or  purchasers  of  motor fuel for purposes other than
27    those with regard to which taxes may be imposed  as  provided
28    in  paragraphs  (b) and (c) of this Section to facilitate the
29    reporting and nontaxability of the exempt sales or uses.
30        (m)  Any ordinance  imposing  or  discontinuing  any  tax
31    under  this  Section  shall  be  adopted and a certified copy
32    thereof filed with  the  Department  on  or  before  June  1,
33    whereupon   the   Department  of  Revenue  shall  proceed  to
34    administer and enforce this Section on behalf of the Regional
 
                            -130-             LRB9203211SMdvA
 1    Transportation Authority as of  September  1  next  following
 2    such  adoption  and  filing.  Beginning  January  1, 1992, an
 3    ordinance or resolution imposing  or  discontinuing  the  tax
 4    hereunder shall be adopted and a certified copy thereof filed
 5    with  the  Department  on  or  before  the first day of July,
 6    whereupon the Department  shall  proceed  to  administer  and
 7    enforce  this  Section  as  of  the first day of October next
 8    following such adoption and  filing.   Beginning  January  1,
 9    1993,  an  ordinance  or resolution imposing or discontinuing
10    the tax hereunder shall  be  adopted  and  a  certified  copy
11    thereof  filed with the Department on or before the first day
12    of  October,  whereupon  the  Department  shall  proceed   to
13    administer  and  enforce  this Section as of the first day of
14    January next following such adoption and filing.
15        (n)  The  State  Department  of   Revenue   shall,   upon
16    collecting  any  taxes  as  provided in this Section, pay the
17    taxes  over  to  the  State  Treasurer  as  trustee  for  the
18    Authority.  The taxes shall be held in a trust  fund  outside
19    the  State  Treasury.   On  or  before  the  25th day of each
20    calendar month, the State Department of Revenue shall prepare
21    and certify to the Comptroller of the State of  Illinois  the
22    amount  to  be paid to the Authority, which shall be the then
23    balance in the  fund,  less  any  amount  determined  by  the
24    Department  to  be  necessary for the payment of refunds. The
25    State  Department  of  Revenue  shall  also  certify  to  the
26    Authority the amount of taxes collected in each County  other
27    than  Cook  County in the metropolitan region less the amount
28    necessary for the payment of  refunds  to  taxpayers  in  the
29    County.  With regard to the County of Cook, the certification
30    shall  specify  the amount of taxes collected within the City
31    of Chicago less the  amount  necessary  for  the  payment  of
32    refunds  to  taxpayers  in the City of Chicago and the amount
33    collected in that portion of Cook County outside  of  Chicago
34    less  the  amount  necessary  for  the  payment of refunds to
 
                            -131-             LRB9203211SMdvA
 1    taxpayers in that portion of Cook County outside of  Chicago.
 2    Within  10  days  after  receipt  by  the  Comptroller of the
 3    certification of the amount to be paid to the Authority,  the
 4    Comptroller  shall cause an order to be drawn for the payment
 5    for the amount  in  accordance  with  the  direction  in  the
 6    certification.
 7        In addition to the disbursement required by the preceding
 8    paragraph,  an allocation shall be made in July 1991 and each
 9    year thereafter to  the  Regional  Transportation  Authority.
10    The  allocation  shall  be  made  in  an  amount equal to the
11    average monthly distribution during  the  preceding  calendar
12    year  (excluding  the  2  months  of lowest receipts) and the
13    allocation  shall  include  the  amount  of  average  monthly
14    distribution  from  the  Regional  Transportation   Authority
15    Occupation  and  Use  Tax Replacement Fund.  The distribution
16    made in  July  1992  and  each  year  thereafter  under  this
17    paragraph and the preceding paragraph shall be reduced by the
18    amount  allocated  and  disbursed under this paragraph in the
19    preceding calendar year.  The  Department  of  Revenue  shall
20    prepare  and  certify to the Comptroller for disbursement the
21    allocations made in accordance with this paragraph.
22        (o)  Failure to adopt a budget ordinance or otherwise  to
23    comply  with Section 4.01 of this Act or to adopt a Five-year
24    Program or otherwise to comply with paragraph (b) of  Section
25    2.01  of  this  Act  shall not affect the validity of any tax
26    imposed by the Authority otherwise in conformity with law.
27        (p)  At no time shall  a  public  transportation  tax  or
28    motor  vehicle  parking  tax authorized under paragraphs (b),
29    (c) and (d) of this Section be in effect at the same time  as
30    any  retailers'  occupation,  use  or  service occupation tax
31    authorized under paragraphs (e), (f) and (g) of this  Section
32    is in effect.
33        Any   taxes  imposed  under  the  authority  provided  in
34    paragraphs (b), (c) and (d) shall remain in effect only until
 
                            -132-             LRB9203211SMdvA
 1    the time as any tax authorized by paragraphs (e), (f) or  (g)
 2    of  this  Section are imposed and becomes effective. Once any
 3    tax authorized by paragraphs (e), (f) or (g) is  imposed  the
 4    Board may not reimpose taxes as authorized in paragraphs (b),
 5    (c)  and  (d)  of  the  Section  unless any tax authorized by
 6    paragraphs  (e),  (f)  or  (g)  of   this   Section   becomes
 7    ineffective by means other than an ordinance of the Board.
 8        (q)  Any   existing   rights,  remedies  and  obligations
 9    (including  enforcement  by   the   Regional   Transportation
10    Authority)  arising  under  any  tax imposed under paragraphs
11    (b), (c) or (d) of this Section shall not be affected by  the
12    imposition  of a tax under paragraphs (e), (f) or (g) of this
13    Section.
14    (Source: P.A. 91-51, eff. 6-30-99.)

15        Section 65.  The Water Commission Act of 1985 is  amended
16    by changing Section 4 as follows:

17        (70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
18        Sec. 4.  Taxes.
19        (a)  The  board  of  commissioners  of  any  county water
20    commission may, by ordinance, impose throughout the territory
21    of the commission any or all of the taxes  provided  in  this
22    Section  for its corporate purposes. However, no county water
23    commission may impose any  such  tax  unless  the  commission
24    certifies  the  proposition of imposing the tax to the proper
25    election officials, who shall submit the proposition  to  the
26    voters residing in the territory at an election in accordance
27    with  the  general election law, and the proposition has been
28    approved by a majority of those voting on the proposition.
29        The proposition shall be in the form provided in  Section
30    5 or shall be substantially in the following form:
31    -------------------------------------------------------------
32        Shall the (insert corporate
 
                            -133-             LRB9203211SMdvA
 1    name of county water commission)           YES
 2    impose (state type of tax or         ------------------------
 3    taxes to be imposed) at the                NO
 4    rate of 1/4%?
 5    -------------------------------------------------------------
 6        Taxes  imposed  under  this  Section  and civil penalties
 7    imposed incident thereto shall be collected and  enforced  by
 8    the  State  Department  of Revenue. The Department shall have
 9    the  power  to  administer  and  enforce  the  taxes  and  to
10    determine all rights for refunds for  erroneous  payments  of
11    the taxes.
12        (b)  The board of commissioners may impose a County Water
13    Commission Retailers' Occupation Tax upon all persons engaged
14    in  the  business  of  selling  tangible personal property at
15    retail in the territory of the commission at a rate  of  1/4%
16    of  the  gross  receipts from the sales made in the course of
17    such business within the territory.  The  tax  imposed  under
18    this  paragraph  and all civil penalties that may be assessed
19    as an incident thereof shall be collected and enforced by the
20    State Department of Revenue. The Department shall  have  full
21    power  to  administer  and enforce this paragraph; to collect
22    all taxes and penalties due hereunder; to  dispose  of  taxes
23    and   penalties   so  collected  in  the  manner  hereinafter
24    provided; and to determine all  rights  to  credit  memoranda
25    arising on account of the erroneous payment of tax or penalty
26    hereunder.   In  the  administration of, and compliance with,
27    this paragraph, the Department and persons who are subject to
28    this  paragraph  shall  have  the  same   rights,   remedies,
29    privileges,  immunities, powers and duties, and be subject to
30    the same conditions,  restrictions,  limitations,  penalties,
31    exclusions,  exemptions  and definitions of terms, and employ
32    the same modes of procedure, as are prescribed in Sections 1,
33    1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in  respect
34    to  all  provisions  therein other than the State rate of tax
 
                            -134-             LRB9203211SMdvA
 1    except that food for human consumption that is to be consumed
 2    off the premises where  it  is  sold  (other  than  alcoholic
 3    beverages,  soft  drinks, and food that has been prepared for
 4    immediate consumption) and prescription  and  nonprescription
 5    medicine,   drugs,  medical  appliances  and  insulin,  urine
 6    testing materials, syringes, and needles used  by  diabetics,
 7    for  human use, shall not be subject to tax hereunder), 2c, 3
 8    (except  as  to  the  disposition  of  taxes  and   penalties
 9    collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
10    5l,  6,  6a,  6b,  6c,  7,  8,  9,  10,  11, 12 and 13 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        Beginning in 2001, propane and home heating oil  sold  to
15    residential  customers  on  or  after  December 1 and through
16    March 31 of each year are exempt from the tax imposed by this
17    subsection.
18        Beginning in 2002, for bills issued on or after January 1
19    and through April 30  each  year,  natural  gas  distributed,
20    supplied,  furnished,  or  sold  to  residential customers is
21    exempt from the tax imposed by this subsection.
22        Persons subject to any tax imposed  under  the  authority
23    granted  in this paragraph may reimburse themselves for their
24    seller's tax liability hereunder by  separately  stating  the
25    tax  as  an  additional charge, which charge may be stated in
26    combination, in  a  single  amount,  with  State  taxes  that
27    sellers  are  required  to  collect under the Use Tax Act and
28    under  subsection  (e)  of  Section  4.03  of  the   Regional
29    Transportation Authority Act, in accordance with such bracket
30    schedules as the Department may prescribe.
31        Whenever  the  Department determines that a refund should
32    be made under this paragraph to a claimant instead of issuing
33    a credit memorandum, the Department shall  notify  the  State
34    Comptroller,  who shall cause the warrant to be drawn for the
 
                            -135-             LRB9203211SMdvA
 1    amount  specified,  and  to  the   person   named,   in   the
 2    notification  from  the Department.  The refund shall be paid
 3    by the State Treasurer out of a county water  commission  tax
 4    fund established under paragraph (g) of this Section.
 5        For  the  purpose of determining whether a tax authorized
 6    under this paragraph  is  applicable,  a  retail  sale  by  a
 7    producer of coal or other mineral mined in Illinois is a sale
 8    at  retail at the place where the coal or other mineral mined
 9    in Illinois is extracted from the earth.  This paragraph does
10    not apply to coal or other mineral when it  is  delivered  or
11    shipped  by  the  seller  to the purchaser at a point outside
12    Illinois so  that  the  sale  is  exempt  under  the  Federal
13    Constitution as a sale in interstate or foreign commerce.
14        If a tax is imposed under this subsection (b) a tax shall
15    also  be  imposed  under  subsections  (c)  and  (d)  of this
16    Section.
17        Nothing in this paragraph shall be construed to authorize
18    a county water commission to impose a tax upon the  privilege
19    of  engaging  in any business which under the Constitution of
20    the United States may not be made the subject of taxation  by
21    this State.
22        (c)  If  a  tax  has been imposed under subsection (b), a
23    tax shall also be imposed upon all persons  engaged,  in  the
24    territory  of the commission, in the business of making sales
25    of service, who, as  an  incident  to  making  the  sales  of
26    service,  transfer  tangible  personal  property  within  the
27    territory. The tax rate shall be 1/4% of the selling price of
28    tangible   personal   property   so  transferred  within  the
29    territory.  The tax imposed  under  this  paragraph  and  all
30    civil  penalties  that may be assessed as an incident thereof
31    shall be collected and enforced by the  State  Department  of
32    Revenue.  The  Department shall have full power to administer
33    and  enforce  this  paragraph;  to  collect  all  taxes   and
34    penalties due hereunder; to dispose of taxes and penalties so
 
                            -136-             LRB9203211SMdvA
 1    collected   in   the  manner  hereinafter  provided;  and  to
 2    determine all rights to credit memoranda arising  on  account
 3    of the erroneous payment of tax or penalty hereunder.  In the
 4    administration  of,  and compliance with, this paragraph, the
 5    Department and persons who  are  subject  to  this  paragraph
 6    shall have the same rights, remedies, privileges, immunities,
 7    powers  and  duties,  and  be subject to the same conditions,
 8    restrictions, limitations, penalties, exclusions,  exemptions
 9    and  definitions  of  terms,  and  employ  the  same modes of
10    procedure, as are prescribed in Sections 1a-1, 2 (except that
11    the  reference  to  State  in  the  definition  of   supplier
12    maintaining  a place of business in this State shall mean the
13    territory of the commission), 2a, 3 through 3-50 (in  respect
14    to  all  provisions  therein other than the State rate of tax
15    except that food for human consumption that is to be consumed
16    off the premises where  it  is  sold  (other  than  alcoholic
17    beverages,  soft  drinks, and food that has been prepared for
18    immediate consumption) and prescription  and  nonprescription
19    medicines,  drugs,  medical  appliances  and  insulin,  urine
20    testing  materials,  syringes, and needles used by diabetics,
21    for human use, shall not be  subject  to  tax  hereunder),  4
22    (except  that  the  reference  to  the  State shall be to the
23    territory of the  commission),  5,  7,  8  (except  that  the
24    jurisdiction  to  which the tax shall be a debt to the extent
25    indicated in that Section  8  shall  be  the  commission),  9
26    (except   as  to  the  disposition  of  taxes  and  penalties
27    collected and except that the returned merchandise credit for
28    this tax may not be taken against any State tax), 10, 11,  12
29    (except the reference therein to Section 2b of the Retailers'
30    Occupation  Tax  Act),  13  (except that any reference to the
31    State shall mean the territory of the commission), the  first
32    paragraph  of  Section 15, 15.5, 16, 17, 18, 19 and 20 of the
33    Service Occupation Tax Act as fully as  if  those  provisions
34    were set forth herein.
 
                            -137-             LRB9203211SMdvA
 1        Beginning  in  2001, propane and home heating oil sold to
 2    residential customers on or  after  December  1  and  through
 3    March 31 of each year are exempt from the tax imposed by this
 4    subsection.
 5        Beginning in 2002, for bills issued on or after January 1
 6    and  through  April  30  each  year, natural gas distributed,
 7    supplied, furnished, or  sold  to  residential  customers  is
 8    exempt from the tax imposed by this subsection.
 9        Persons  subject  to  any tax imposed under the authority
10    granted in this paragraph may reimburse themselves for  their
11    serviceman's  tax  liability  hereunder by separately stating
12    the tax as an additional charge, which charge may  be  stated
13    in  combination,  in  a  single  amount,  with State tax that
14    servicemen are authorized to collect under  the  Service  Use
15    Tax Act, and any tax for which servicemen may be liable under
16    subsection  (f)  of  Sec. 4.03 of the Regional Transportation
17    Authority Act, in accordance with such bracket  schedules  as
18    the Department may prescribe.
19        Whenever  the  Department determines that a refund should
20    be made under this paragraph to a claimant instead of issuing
21    a credit memorandum, the Department shall  notify  the  State
22    Comptroller,  who shall cause the warrant to be drawn for the
23    amount  specified,  and  to  the   person   named,   in   the
24    notification  from  the Department.  The refund shall be paid
25    by the State Treasurer out of a county water  commission  tax
26    fund established under paragraph (g) of this Section.
27        Nothing in this paragraph shall be construed to authorize
28    a  county water commission to impose a tax upon the privilege
29    of engaging in any business which under the  Constitution  of
30    the  United States may not be made the subject of taxation by
31    the State.
32        (d)  If a tax has been imposed under  subsection  (b),  a
33    tax  shall  also  imposed upon the privilege of using, in the
34    territory of the commission, any item  of  tangible  personal
 
                            -138-             LRB9203211SMdvA
 1    property  that  is  purchased outside the territory at retail
 2    from a retailer, and that is titled  or  registered  with  an
 3    agency  of  this State's government, at a rate of 1/4% of the
 4    selling price of the tangible personal  property  within  the
 5    territory,  as "selling price" is defined in the Use Tax Act.
 6    The tax  shall  be  collected  from  persons  whose  Illinois
 7    address  for  titling  or  registration  purposes is given as
 8    being in the territory.  The tax shall be  collected  by  the
 9    Department of Revenue for a county water commission.  The tax
10    must be paid to the State, or an exemption determination must
11    be  obtained from the Department of Revenue, before the title
12    or certificate  of  registration  for  the  property  may  be
13    issued.  The  tax or proof of exemption may be transmitted to
14    the Department by way of the State agency with which, or  the
15    State  officer with whom, the tangible personal property must
16    be titled or registered  if  the  Department  and  the  State
17    agency  or  State  officer determine that this procedure will
18    expedite  the  processing  of  applications  for   title   or
19    registration.
20        The  Department  shall  have full power to administer and
21    enforce this paragraph; to collect all taxes,  penalties  and
22    interest  due  hereunder;  to dispose of taxes, penalties and
23    interest so collected in the manner hereinafter provided; and
24    to determine  all  rights  to  credit  memoranda  or  refunds
25    arising  on  account of the erroneous payment of tax, penalty
26    or  interest  hereunder.  In  the  administration   of,   and
27    compliance  with  this  paragraph, the Department and persons
28    who are subject to this paragraph shall have the same rights,
29    remedies, privileges, immunities, powers and duties,  and  be
30    subject  to  the  same conditions, restrictions, limitations,
31    penalties, exclusions, exemptions and  definitions  of  terms
32    and  employ the same modes of procedure, as are prescribed in
33    Sections 2 (except the definition of "retailer maintaining  a
34    place  of  business  in  this State"), 3 through 3-80 (except
 
                            -139-             LRB9203211SMdvA
 1    provisions pertaining to the State rate of  tax,  and  except
 2    provisions  concerning  collection or refunding of the tax by
 3    retailers, and except that food for human consumption that is
 4    to be consumed off the premises where it is sold (other  than
 5    alcoholic  beverages,  soft  drinks,  and  food that has been
 6    prepared for  immediate  consumption)  and  prescription  and
 7    nonprescription  medicines,  drugs,  medical  appliances  and
 8    insulin,  urine testing materials, syringes, and needles used
 9    by diabetics, for human use, shall  not  be  subject  to  tax
10    hereunder),  4,  11, 12, 12a, 14, 15, 19 (except the portions
11    pertaining  to  claims  by  retailers  and  except  the  last
12    paragraph concerning refunds), 20, 21 and 22 of the  Use  Tax
13    Act  and  Section 3-7 of the Uniform Penalty and Interest Act
14    that are not inconsistent with this paragraph, as fully as if
15    those provisions were set forth herein.
16        Beginning in 2001, propane and home heating oil  sold  to
17    residential  customers  on  or  after  December 1 and through
18    March 31 of each year are exempt from the tax imposed by this
19    subsection.
20        Beginning in 2002, for bills issued on or after January 1
21    and through April 30  each  year,  natural  gas  distributed,
22    supplied,  furnished,  or  sold  to  residential customers is
23    exempt from the tax imposed by this subsection.
24        Whenever the Department determines that a  refund  should
25    be made under this paragraph to a claimant instead of issuing
26    a  credit  memorandum,  the Department shall notify the State
27    Comptroller, who shall cause the order to be  drawn  for  the
28    amount   specified,   and   to   the  person  named,  in  the
29    notification from the Department.  The refund shall  be  paid
30    by  the  State Treasurer out of a county water commission tax
31    fund established under paragraph (g) of this Section.
32        (e)  A certificate of registration issued  by  the  State
33    Department  of  Revenue  to  a  retailer under the Retailers'
34    Occupation Tax Act or under the Service  Occupation  Tax  Act
 
                            -140-             LRB9203211SMdvA
 1    shall  permit  the registrant to engage in a business that is
 2    taxed under the tax imposed under paragraphs (b), (c) or  (d)
 3    of  this  Section  and  no  additional  registration shall be
 4    required under the tax.  A certificate issued under  the  Use
 5    Tax  Act  or the Service Use Tax Act shall be applicable with
 6    regard to  any  tax  imposed  under  paragraph  (c)  of  this
 7    Section.
 8        (f)  Any  ordinance  imposing  or  discontinuing  any tax
 9    under this Section shall be  adopted  and  a  certified  copy
10    thereof  filed  with  the  Department  on  or  before June 1,
11    whereupon  the  Department  of  Revenue  shall   proceed   to
12    administer  and  enforce this Section on behalf of the county
13    water  commission  as  of  September  1  next  following  the
14    adoption and filing.  Beginning January 1, 1992, an ordinance
15    or resolution imposing or  discontinuing  the  tax  hereunder
16    shall  be adopted and a certified copy thereof filed with the
17    Department on or before the first day of July, whereupon  the
18    Department  shall  proceed  to  administer  and  enforce this
19    Section as of the first day of October  next  following  such
20    adoption and filing.  Beginning January 1, 1993, an ordinance
21    or  resolution  imposing  or  discontinuing the tax hereunder
22    shall be adopted and a certified copy thereof filed with  the
23    Department  on  or before the first day of October, whereupon
24    the Department shall proceed to administer and  enforce  this
25    Section  as  of  the first day of January next following such
26    adoption and filing.
27        (g)  The  State  Department  of   Revenue   shall,   upon
28    collecting  any  taxes  as  provided in this Section, pay the
29    taxes  over  to  the  State  Treasurer  as  trustee  for  the
30    commission. The taxes shall be held in a trust  fund  outside
31    the  State  Treasury.  On  or  before  the  25th  day of each
32    calendar month, the State Department of Revenue shall prepare
33    and certify to the Comptroller of the State of  Illinois  the
34    amount  to be paid to the commission, which shall be the then
 
                            -141-             LRB9203211SMdvA
 1    balance in the  fund,  less  any  amount  determined  by  the
 2    Department to be necessary for the payment of refunds. Within
 3    10 days after receipt by the Comptroller of the certification
 4    of  the  amount to be paid to the commission, the Comptroller
 5    shall cause an order to be drawn  for  the  payment  for  the
 6    amount in accordance with the direction in the certification.
 7    (Source: P.A. 91-51, eff. 6-30-99.)

 8        Section  90.  The State Mandates Act is amended by adding
 9    Section 8.25 as follows:

10        (30 ILCS 805/8.25 new)
11        Sec. 8.25. Exempt mandate.   Notwithstanding  Sections  6
12    and  8 of this Act, no reimbursement by the State is required
13    for  the  implementation  of  any  mandate  created  by  this
14    amendatory Act of the 92nd General Assembly.

15        Section 99.  Effective date.  This Act takes effect  upon
16    becoming law.
 
                            -142-             LRB9203211SMdvA
 1                                INDEX
 2               Statutes amended in order of appearance
 3    20 ILCS 805/805-45 new
 4    30 ILCS 500/45-70 new
 5    30 ILCS 115/1             from Ch. 85, par. 611
 6    35 ILCS 5/213 new
 7    35 ILCS 5/901             from Ch. 120, par. 9-901
 8    35 ILCS 105/3-5           from Ch. 120, par. 439.3-5
 9    35 ILCS 110/3-5           from Ch. 120, par. 439.33-5
10    35 ILCS 115/3-5           from Ch. 120, par. 439.103-5
11    35 ILCS 120/2-5           from Ch. 120, par. 441-5
12    35 ILCS 615/2a.4 new
13    55 ILCS 5/5-1006          from Ch. 34, par. 5-1006
14    55 ILCS 5/5-1006.5
15    55 ILCS 5/5-1007          from Ch. 34, par. 5-1007
16    65 ILCS 5/8-11-1          from Ch. 24, par. 8-11-1
17    65 ILCS 5/8-11-1.1        from Ch. 24, par. 8-11-1.1
18    65 ILCS 5/8-11-1.6
19    65 ILCS 5/8-11-1.7
20    65 ILCS 5/8-11-2          from Ch. 24, par. 8-11-2
21    65 ILCS 5/8-11-5          from Ch. 24, par. 8-11-5
22    65 ILCS 5/8-11-6          from Ch. 24, par. 8-11-6
23    70 ILCS 200/245-12
24    70 ILCS 3610/5.01         from Ch. 111 2/3, par. 355.01
25    70 ILCS 3615/4.03         from Ch. 111 2/3, par. 704.03
26    70 ILCS 3720/4            from Ch. 111 2/3, par. 254
27    30 ILCS 805/8.25 new

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