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92_SB0164enr SB164 Enrolled LRB9201884SMtm 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 1. Short title. This Act may be cited as the 5 Simplified Sales and Use Tax Administration Act. 6 Section 2. Definitions. As used in this Act: 7 (a) "Agreement" means the Streamlined Sales and Use Tax 8 Agreement as amended and adopted on January 27, 2001. 9 (b) "Certified Automated System" means software 10 certified jointly by the states that are signatories to the 11 Agreement to calculate the tax imposed by each jurisdiction 12 on a transaction, determine the amount of tax to remit to the 13 appropriate state, and maintain a record of the transaction. 14 (c) "Certified Service Provider" means an agent 15 certified jointly by the states that are signatories to the 16 Agreement to perform all of the seller's sales tax functions. 17 (d) "Person" means an individual, trust, estate, 18 fiduciary, partnership, limited liability company, limited 19 liability partnership, corporation, or any other legal 20 entity. 21 (e) "Sales Tax" means the tax levied under the Service 22 Occupation Tax Act (35 ILCS 115/) and the Retailers' 23 Occupation Tax Act (35 ILCS 120/). "Sales tax" also means 24 any local sales tax levied under the Home Rule Municipal 25 Retailers' Occupation Tax Act (65 ILCS 5/8-11-1), the 26 Non-Home Rule Municipal Retailers' Occupation Tax Act (65 27 ILCS 5/8-11-1.3), the Non-Home Rule Municipal Service 28 Occupation Tax Act (65 ILCS 5/8-11-1.4), the Home Rule 29 Municipal Service Occupation Tax (65 ILCS 5/8-11-5), the Home 30 Rule County Retailers' Occupation Tax Law (55 ILCS 5/5-1006), 31 the Special County Occupation Tax for Public Safety Law (55 SB164 Enrolled -2- LRB9201884SMtm 1 ILCS 5/5-1006.5), the Home Rule County Service Occupation Tax 2 Law (55 ILCS 5/5-1007), subsection (b) of the Rock Island 3 County Use and Occupation Tax Law (55 ILCS 5/5-1008.5(b)), 4 the Metro East Mass Transit District Retailers' Occupation 5 Tax (70 ILCS 3610/5.01(b)), the Metro East Mass Transit 6 District Service Occupation Tax (70 ILCS 3610/5.01(c)), the 7 Regional Transportation Authority Retailers' Occupation Tax 8 (70 ILCS 3615/4.03(e)), the Regional Transportation Authority 9 Service Occupation Tax (70 ILCS 3615/4.03(f)), the County 10 Water Commission Retailers' Occupation Tax (70 ILCS 11 3720/4(b)), or the County Water Commission Service Occupation 12 Tax (70 ILCS 3720/4(c)). 13 (f) "Seller" means any person making sales of personal 14 property or services. 15 (g) "State" means any state of the United States and the 16 District of Columbia. 17 (h) "Use tax" means the tax levied under the Use Tax Act 18 (35 ILCS 105/) and the Service Use Tax Act (35 ILCS 110/). 19 "Use tax" also means any local use tax levied under the Home 20 Rule Municipal Use Tax Act (65 ILCS 5/8-11-6(b)), provided 21 that the State and the municipality have entered into an 22 agreement that provides for administration of the tax by the 23 State. 24 Section 3. Legislative finding. The General Assembly 25 finds that a simplified sales tax and use tax system will 26 reduce and over time eliminate the burden and cost for all 27 vendors to collect this State's sales and use tax. The 28 General Assembly further finds that this State should 29 participate in multistate discussions to review or amend or 30 both review and amend the terms of the Agreement to simplify 31 and modernize sales tax and use tax administration in order 32 to substantially reduce the burden of tax compliance for all 33 sellers and for all types of commerce. SB164 Enrolled -3- LRB9201884SMtm 1 Section 4. Authority to participate in multistate 2 negotiations. For the purposes of reviewing or amending or 3 both reviewing and amending the Agreement embodying the 4 simplification requirements as contained in Section 7 of this 5 Act, the State shall enter into multistate discussions. For 6 purposes of such discussions, the State shall be represented 7 by 4 delegates. One delegate shall be appointed by the 8 President of the Senate, one by the Minority Leader of the 9 Senate, one by the Speaker of the House of Representatives, 10 and one by the Minority Leader of the House of 11 Representatives. 12 Section 5. Authority to enter agreement. Subject to 13 Section 6, the Department of Revenue is authorized to enter 14 into the Streamlined Sales and Use Tax Agreement with one or 15 more states to simplify and modernize sales and use tax 16 administration in order to substantially reduce the burden of 17 tax compliance for all sellers and for all types of commerce. 18 In furtherance of the Agreement, the Department of Revenue is 19 authorized to act jointly with other states that are members 20 of the Agreement to establish standards for certification of 21 a certified service provider and certified automated system 22 and establish performance standards for multistate sellers. 23 The Department of Revenue is further authorized to take 24 other actions reasonably required to implement the provisions 25 set forth in this Act. Other actions authorized by this 26 Section include, but are not limited to, the adoption of 27 rules and regulations and the joint procurement, with other 28 member states, of goods and services in furtherance of the 29 cooperative agreement. 30 The Director of Revenue or the Director's designee is 31 authorized to represent this State before the other states 32 that are signatories to the Agreement. SB164 Enrolled -4- LRB9201884SMtm 1 Section 6. Relationship to State law. No provision of 2 the Agreement authorized by this Act in whole or part 3 invalidates or amends any provision of the law of this State. 4 Adoption of the Agreement by this State does not amend or 5 modify any law of this State. Implementation of any 6 condition of the Agreement in this State, whether adopted 7 before, at, or after membership of this State in the 8 Agreement, must be by the action of this State. 9 Section 7. Agreement requirements. The Department of 10 Revenue shall not enter into the Streamlined Sales and Use 11 Tax Agreement unless the Agreement requires each state to 12 abide by the following requirements: 13 (a) Simplified state rate. The Agreement must set 14 restrictions to limit over time the number of state rates. 15 (b) Uniform standards. The Agreement must establish 16 uniform standards for the following: 17 (1) The sourcing of transactions to taxing 18 jurisdictions. 19 (2) The administration of exempt sales. 20 (3) Sales and use tax returns and remittances. 21 (c) Central registration. The Agreement must provide a 22 central, electronic registration system that allows a seller 23 to register to collect and remit sales and use taxes for all 24 signatory states. 25 (d) No nexus attribution. The Agreement must provide 26 that registration with the central registration system and 27 the collection of sales and use taxes in the signatory states 28 will not be used as a factor in determining whether the 29 seller has nexus with a state for any tax. 30 (e) Local sales and use taxes. The Agreement must 31 provide for reduction of the burdens of complying with local 32 sales and use taxes, as those terms are defined by each 33 signatory state in the Act by which the state authorizes its SB164 Enrolled -5- LRB9201884SMtm 1 entry into the Agreement, through the following: 2 (1) Restricting variances between the State and 3 local tax bases. 4 (2) Requiring states to administer any sales and 5 use taxes levied by local jurisdictions within the state 6 so that sellers collecting and remitting these taxes will 7 not have to register or file returns with, remit funds 8 to, or be subject to independent audits from local taxing 9 jurisdictions with regard to these taxes. 10 (3) Restricting the frequency of changes in the 11 local sales and use tax rates and setting effective dates 12 for the application of local jurisdictional boundary 13 changes to local sales and use taxes. 14 (4) Providing notice of changes in local sales and 15 use tax rates and of changes in the boundaries of local 16 taxing jurisdictions. 17 (f) Monetary allowances. The Agreement must outline any 18 monetary allowances that are to be provided by the states to 19 sellers or certified service providers. The Agreement must 20 allow for a joint public and private sector study of the 21 compliance cost on sellers and certified service providers to 22 collect sales and use taxes for state and local governments 23 under various levels of complexity to be completed by July 1, 24 2002. 25 (g) State compliance. The Agreement must require each 26 state to certify compliance with the terms of the Agreement 27 prior to joining and to maintain compliance, under the laws 28 of the member state, with all provisions of the Agreement 29 while a member. 30 (h) Consumer privacy. The Agreement must require each 31 state to adopt a uniform policy for certified service 32 providers that protects the privacy of consumers and 33 maintains the confidentiality of tax information. 34 (i) Advisory councils. The Agreement must provide for SB164 Enrolled -6- LRB9201884SMtm 1 the appointment of an advisory council of private sector 2 representatives and an advisory council of non-member state 3 representatives to consult with in the administration of the 4 Agreement. 5 (j) Nothing in the Agreement shall require a signatory 6 state to administer a tax levied by a local jurisdiction 7 unless the tax is a sales tax or use tax as defined by the 8 signatory state in the Act by which the state authorizes its 9 entry into the Agreement. 10 Section 8. Cooperating sovereigns. The Agreement 11 authorized by this Act is an accord among individual 12 cooperating sovereigns in furtherance of their governmental 13 functions. The Agreement provides a mechanism among the 14 member states to establish and maintain a cooperative, 15 simplified system for the application and administration of 16 sales and use taxes under the duly adopted law of each member 17 state. 18 Section 9. Limited binding and beneficial effect. 19 (a) The Agreement authorized by this Act binds and 20 inures only to the benefit of this State and the other member 21 states. No person, other than a member state, is an intended 22 beneficiary of the Agreement. Any benefit to a person other 23 than a state is established by the law of this State and the 24 other member states and not by the terms of the Agreement. 25 (b) Consistent with subsection (a), no person shall have 26 any cause of action or defense under the Agreement or by 27 virtue of this State's approval of the Agreement. No person 28 may challenge, in any action brought under any provision of 29 law, any action or inaction by any department, agency, or 30 other instrumentality of this State, or any political 31 subdivision of this State on the ground that the action or 32 inaction is inconsistent with the Agreement. SB164 Enrolled -7- LRB9201884SMtm 1 (c) No law of this State, or the application thereof, 2 may be declared invalid as to any person or circumstance on 3 the ground that the provision or application is inconsistent 4 with the Agreement. 5 Section 10. Seller and third party liability. 6 (a) A certified service provider is the agent of a 7 seller, with whom the certified service provider has 8 contracted, for the collection and remittance of sales and 9 use taxes. As the seller's agent, the certified service 10 provider is liable for sales and use tax due each member 11 state on all sales transactions it processes for the seller 12 except as set out in this Section. 13 A seller that contracts with a certified service provider 14 is not liable to the State for sales or use tax due on 15 transactions processed by the certified service provider 16 unless the seller misrepresented the type of items it sells 17 or committed fraud. In the absence of probable cause to 18 believe that the seller has committed fraud or made a 19 material misrepresentation, the seller is not subject to 20 audit on the transactions processed by the certified service 21 provider. A seller is subject to audit for transactions not 22 processed by the certified service provider. The member 23 states acting jointly may perform a system check of the 24 seller and review the seller's procedures to determine if the 25 certified service provider's system is functioning properly 26 and the extent to which the seller's transactions are being 27 processed by the certified service provider. 28 (b) A person that provides a certified automated system 29 is responsible for the proper functioning of that system and 30 is liable to the State for underpayments of tax attributable 31 to errors in the functioning of the certified automated 32 system. A seller that uses a certified automated system 33 remains responsible and is liable to the State for reporting SB164 Enrolled -8- LRB9201884SMtm 1 and remitting tax. 2 (c) A seller that has a proprietary system for 3 determining the amount of tax due on transactions and has 4 signed an agreement establishing a performance standard for 5 that system is liable for the failure of the system to meet 6 the performance standard. 7 Section 905. The Illinois Municipal Code is amended by 8 changing Section 8-11-6 as follows: 9 (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6) 10 Sec. 8-11-6. Home Rule Municipal Use Tax Act. 11 (a) The corporate authorities of a home rule 12 municipality may impose a tax upon the privilege of using, in 13 such municipality, any item of tangible personal property 14 which is purchased at retail from a retailer, and which is 15 titled or registered at a location within the corporate 16 limits of such home rule municipality with an agency of this 17 State's government, at a rate which is an increment of 1/4% 18 and based on the selling price of such tangible personal 19 property, as "selling price" is defined in the Use Tax Act. 20 In home rule municipalities with less than 2,000,000 21 inhabitants, the tax shall be collected by the municipality 22 imposing the tax from persons whose Illinois address for 23 titling or registration purposes is given as being in such 24 municipality. 25 (b) In home rule municipalities with 2,000,000 or more 26 inhabitants, the corporate authorities of the municipality 27 may additionally impose a tax beginning July 1, 1991 upon the 28 privilege of using in the municipality, any item of tangible 29 personal property, other than tangible personal property 30 titled or registered with an agency of the State's 31 government, that is purchased at retail from a retailer 32 located outside the corporate limits of the municipality, at SB164 Enrolled -9- LRB9201884SMtm 1 a rate that is an increment of 1/4% not to exceed 1% and 2 based on the selling price of the tangible personal property, 3 as "selling price" is defined in the Use Tax Act. Such tax 4 shall be collected from the purchaser or the retailer either 5 by the municipality imposing such tax or by the Department of 6 Revenue pursuant to an agreement between the Department and 7 the municipality. 8 To prevent multiple home rule taxation, the use in a home 9 rule municipality of tangible personal property that is 10 acquired outside the municipality and caused to be brought 11 into the municipality by a person who has already paid a home 12 rule municipal tax in another municipality in respect to the 13 sale, purchase, or use of that property, shall be exempt to 14 the extent of the amount of the tax properly due and paid in 15 the other home rule municipality. 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 SB164 Enrolled -10- LRB9201884SMtm 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 SB164 Enrolled -11- LRB9201884SMtm 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 SB164 Enrolled -12- LRB9201884SMtm 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 910. The Regional Transportation Authority Act SB164 Enrolled -13- LRB9201884SMtm 1 is amended by changing Section 4.03 as follows: 2 (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03) 3 Sec. 4.03. Taxes. 4 (a) In order to carry out any of the powers or purposes 5 of the Authority, the Board may by ordinance adopted with the 6 concurrence of 9 of the then Directors, impose throughout the 7 metropolitan region any or all of the taxes provided in this 8 Section. Except as otherwise provided in this Act, taxes 9 imposed under this Section and civil penalties imposed 10 incident thereto shall be collected and enforced by the State 11 Department of Revenue. The Department shall have the power to 12 administer and enforce the taxes and to determine all rights 13 for refunds for erroneous payments of the taxes. 14 (b) The Board may impose a public transportation tax 15 upon all persons engaged in the metropolitan region in the 16 business of selling at retail motor fuel for operation of 17 motor vehicles upon public highways. The tax shall be at a 18 rate not to exceed 5% of the gross receipts from the sales of 19 motor fuel in the course of the business. As used in this 20 Act, the term "motor fuel" shall have the same meaning as in 21 the Motor Fuel Tax Act. The Board may provide for details of 22 the tax. The provisions of any tax shall conform, as closely 23 as may be practicable, to the provisions of the Municipal 24 Retailers Occupation Tax Act, including without limitation, 25 conformity to penalties with respect to the tax imposed and 26 as to the powers of the State Department of Revenue to 27 promulgate and enforce rules and regulations relating to the 28 administration and enforcement of the provisions of the tax 29 imposed, except that reference in the Act to any municipality 30 shall refer to the Authority and the tax shall be imposed 31 only with regard to receipts from sales of motor fuel in the 32 metropolitan region, at rates as limited by this Section. 33 (c) In connection with the tax imposed under paragraph SB164 Enrolled -14- LRB9201884SMtm 1 (b) of this Section the Board may impose a tax upon the 2 privilege of using in the metropolitan region motor fuel for 3 the operation of a motor vehicle upon public highways, the 4 tax to be at a rate not in excess of the rate of tax imposed 5 under paragraph (b) of this Section. The Board may provide 6 for details of the tax. 7 (d) The Board may impose a motor vehicle parking tax 8 upon the privilege of parking motor vehicles at off-street 9 parking facilities in the metropolitan region at which a fee 10 is charged, and may provide for reasonable classifications in 11 and exemptions to the tax, for administration and enforcement 12 thereof and for civil penalties and refunds thereunder and 13 may provide criminal penalties thereunder, the maximum 14 penalties not to exceed the maximum criminal penalties 15 provided in the Retailers' Occupation Tax Act. The Authority 16 may collect and enforce the tax itself or by contract with 17 any unit of local government. The State Department of 18 Revenue shall have no responsibility for the collection and 19 enforcement unless the Department agrees with the Authority 20 to undertake the collection and enforcement. As used in this 21 paragraph, the term "parking facility" means a parking area 22 or structure having parking spaces for more than 2 vehicles 23 at which motor vehicles are permitted to park in return for 24 an hourly, daily, or other periodic fee, whether publicly or 25 privately owned, but does not include parking spaces on a 26 public street, the use of which is regulated by parking 27 meters. 28 (e) The Board may impose a Regional Transportation 29 Authority Retailers' Occupation Tax upon all persons engaged 30 in the business of selling tangible personal property at 31 retail in the metropolitan region. In Cook County the tax 32 rate shall be 1% of the gross receipts from sales of food for 33 human consumption that is to be consumed off the premises 34 where it is sold (other than alcoholic beverages, soft drinks SB164 Enrolled -15- LRB9201884SMtm 1 and food that has been prepared for immediate consumption) 2 and prescription and nonprescription medicines, drugs, 3 medical appliances and insulin, urine testing materials, 4 syringes and needles used by diabetics, and 3/4% of the gross 5 receipts from other taxable sales made in the course of that 6 business. In DuPage, Kane, Lake, McHenry, and Will Counties, 7 the tax rate shall be 1/4% of the gross receipts from all 8 taxable sales made in the course of that business. The tax 9 imposed under this Section and all civil penalties that may 10 be assessed as an incident thereof shall be collected and 11 enforced by the State Department of Revenue. The Department 12 shall have full power to administer and enforce this Section; 13 to collect all taxes and penalties so collected in the manner 14 hereinafter provided; and to determine all rights to credit 15 memoranda arising on account of the erroneous payment of tax 16 or penalty hereunder. In the administration of, and 17 compliance with this Section, the Department and persons who 18 are subject to this Section shall have the same rights, 19 remedies, privileges, immunities, powers and duties, and be 20 subject to the same conditions, restrictions, limitations, 21 penalties, exclusions, exemptions and definitions of terms, 22 and employ the same modes of procedure, as are prescribed in 23 Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 24 (in respect to all provisions therein other than the State 25 rate of tax), 2c, 3 (except as to the disposition of taxes 26 and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 27 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 28 of the Retailers' Occupation Tax Act and Section 3-7 of the 29 Uniform Penalty and Interest Act, as fully as if those 30 provisions were set forth herein. 31 Persons subject to any tax imposed under the authority 32 granted in this Section may reimburse themselves for their 33 seller's tax liability hereunder by separately stating the 34 tax as an additional charge, which charge may be stated in SB164 Enrolled -16- LRB9201884SMtm 1 combination in a single amount with State taxes that sellers 2 are required to collect under the Use Tax Act, under any 3 bracket schedules the Department may prescribe. 4 Whenever the Department determines that a refund should 5 be made under this Section to a claimant instead of issuing a 6 credit memorandum, the Department shall notify the State 7 Comptroller, who shall cause the warrant to be drawn for the 8 amount specified, and to the person named, in the 9 notification from the Department. The refund shall be paid 10 by the State Treasurer out of the Regional Transportation 11 Authority tax fund established under paragraph (n) of this 12 Section. 13 If a tax is imposed under this subsection (e), a tax 14 shall also be imposed under subsections (f) and (g) of this 15 Section. 16 For the purpose of determining whether a tax authorized 17 under this Section is applicable, a retail sale by a producer 18 of coal or other mineral mined in Illinois, is a sale at 19 retail at the place where the coal or other mineral mined in 20 Illinois is extracted from the earth. This paragraph does not 21 apply to coal or other mineral when it is delivered or 22 shipped by the seller to the purchaser at a point outside 23 Illinois so that the sale is exempt under the Federal 24 Constitution as a sale in interstate or foreign commerce. 25 Nothing in this Section shall be construed to authorize 26 the Regional Transportation Authority to impose a tax upon 27 the privilege of engaging in any business that under the 28 Constitution of the United States may not be made the subject 29 of taxation by this State. 30 (f) If a tax has been imposed under paragraph (e), a 31 Regional Transportation Authority Service Occupation Tax 32 shall also be imposed upon all persons engaged, in the 33 metropolitan region in the business of making sales of 34 service, who as an incident to making the sales of service, SB164 Enrolled -17- LRB9201884SMtm 1 transfer tangible personal property within the metropolitan 2 region, either in the form of tangible personal property or 3 in the form of real estate as an incident to a sale of 4 service. In Cook County, the tax rate shall be: (1) 1% of 5 the serviceman's cost price of food prepared for immediate 6 consumption and transferred incident to a sale of service 7 subject to the service occupation tax by an entity licensed 8 under the Hospital Licensing Act or the Nursing Home Care Act 9 that is located in the metropolitan region; (2) 1% of the 10 selling price of food for human consumption that is to be 11 consumed off the premises where it is sold (other than 12 alcoholic beverages, soft drinks and food that has been 13 prepared for immediate consumption) and prescription and 14 nonprescription medicines, drugs, medical appliances and 15 insulin, urine testing materials, syringes and needles used 16 by diabetics; and (3) 3/4% of the selling price from other 17 taxable sales of tangible personal property transferred. In 18 DuPage, Kane, Lake, McHenry and Will Counties the rate shall 19 be 1/4% of the selling price of all tangible personal 20 property transferred. 21 The tax imposed under this paragraph and all civil 22 penalties that may be assessed as an incident thereof shall 23 be collected and enforced by the State Department of Revenue. 24 The Department shall have full power to administer and 25 enforce this paragraph; to collect all taxes and penalties 26 due hereunder; to dispose of taxes and penalties collected in 27 the manner hereinafter provided; and to determine all rights 28 to credit memoranda arising on account of the erroneous 29 payment of tax or penalty hereunder. In the administration 30 of and compliance with this paragraph, the Department and 31 persons who are subject to this paragraph shall have the same 32 rights, remedies, privileges, immunities, powers and duties, 33 and be subject to the same conditions, restrictions, 34 limitations, penalties, exclusions, exemptions and SB164 Enrolled -18- LRB9201884SMtm 1 definitions of terms, and employ the same modes of procedure, 2 as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in 3 respect to all provisions therein other than the State rate 4 of tax), 4 (except that the reference to the State shall be 5 to the Authority), 5, 7, 8 (except that the jurisdiction to 6 which the tax shall be a debt to the extent indicated in that 7 Section 8 shall be the Authority), 9 (except as to the 8 disposition of taxes and penalties collected, and except that 9 the returned merchandise credit for this tax may not be taken 10 against any State tax), 10, 11, 12 (except the reference 11 therein to Section 2b of the Retailers' Occupation Tax Act), 12 13 (except that any reference to the State shall mean the 13 Authority), the first paragraph of Section 15, 16, 17, 18, 19 14 and 20 of the Service Occupation Tax Act and Section 3-7 of 15 the Uniform Penalty and Interest Act, as fully as if those 16 provisions were set forth herein. 17 Persons subject to any tax imposed under the authority 18 granted in this paragraph may reimburse themselves for their 19 serviceman's tax liability hereunder by separately stating 20 the tax as an additional charge, that charge may be stated in 21 combination in a single amount with State tax that servicemen 22 are authorized to collect under the Service Use Tax Act, 23 under any bracket schedules the Department may prescribe. 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 warrant to be drawn for the 28 amount specified, and to the person named in the notification 29 from the Department. The refund shall be paid by the State 30 Treasurer out of the Regional Transportation Authority tax 31 fund established under paragraph (n) of this Section. 32 Nothing in this paragraph shall be construed to authorize 33 the Authority to impose a tax upon the privilege of engaging 34 in any business that under the Constitution of the United SB164 Enrolled -19- LRB9201884SMtm 1 States may not be made the subject of taxation by the State. 2 (g) If a tax has been imposed under paragraph (e), a tax 3 shall also be imposed upon the privilege of using in the 4 metropolitan region, any item of tangible personal property 5 that is purchased outside the metropolitan region at retail 6 from a retailer, and that is titled or registered with an 7 agency of this State's government. In Cook County the tax 8 rate shall be 3/4% of the selling price of the tangible 9 personal property, as "selling price" is defined in the Use 10 Tax Act. In DuPage, Kane, Lake, McHenry and Will counties 11 the tax rate shall be 1/4% of the selling price of the 12 tangible personal property, as "selling price" is defined in 13 the Use Tax Act. The tax shall be collected from persons 14 whose Illinois address for titling or registration purposes 15 is given as being in the metropolitan region. The tax shall 16 be collected by the Department of Revenue for the Regional 17 Transportation Authority. The tax must be paid to the State, 18 or an exemption determination must be obtained from the 19 Department of Revenue, before the title or certificate of 20 registration for the property may be issued. The tax or proof 21 of exemption may be transmitted to the Department by way of 22 the State agency with which, or the State officer with whom, 23 the tangible personal property must be titled or registered 24 if the Department and the State agency or State officer 25 determine that this procedure will expedite the processing of 26 applications for title or registration. 27 The Department shall have full power to administer and 28 enforce this paragraph; to collect all taxes, penalties and 29 interest due hereunder; to dispose of taxes, penalties and 30 interest collected in the manner hereinafter provided; and to 31 determine all rights to credit memoranda or refunds arising 32 on account of the erroneous payment of tax, penalty or 33 interest hereunder. In the administration of and compliance 34 with this paragraph, the Department and persons who are SB164 Enrolled -20- LRB9201884SMtm 1 subject to this paragraph shall have the same rights, 2 remedies, privileges, immunities, powers and duties, and be 3 subject to the same conditions, restrictions, limitations, 4 penalties, exclusions, exemptions and definitions of terms 5 and employ the same modes of procedure, as are prescribed in 6 Sections 2 (except the definition of "retailer maintaining a 7 place of business in this State"), 3 through 3-80 (except 8 provisions pertaining to the State rate of tax, and except 9 provisions concerning collection or refunding of the tax by 10 retailers), 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 are not inconsistent with this paragraph, as fully 14 as if those provisions were set forth herein. 15 Whenever the Department determines that a refund should 16 be made under this paragraph to a claimant instead of issuing 17 a 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 Regional Transportation Authority tax 22 fund established under paragraph (n) of this Section. 23 (h) The Authority may impose a replacement vehicle tax 24 of $50 on any passenger car as defined in Section 1-157 of 25 the Illinois Vehicle Code purchased within the metropolitan 26 region by or on behalf of an insurance company to replace a 27 passenger car of an insured person in settlement of a total 28 loss claim. The tax imposed may not become effective before 29 the first day of the month following the passage of the 30 ordinance imposing the tax and receipt of a certified copy of 31 the ordinance by the Department of Revenue. The Department 32 of Revenue shall collect the tax for the Authority in 33 accordance with Sections 3-2002 and 3-2003 of the Illinois 34 Vehicle Code. SB164 Enrolled -21- LRB9201884SMtm 1 The Department shall immediately pay over to the State 2 Treasurer, ex officio, as trustee, all taxes collected 3 hereunder. On or before the 25th day of each calendar month, 4 the Department shall prepare and certify to the Comptroller 5 the disbursement of stated sums of money to the Authority. 6 The amount to be paid to the Authority shall be the amount 7 collected hereunder during the second preceding calendar 8 month by the Department, less any amount determined by the 9 Department to be necessary for the payment of refunds. 10 Within 10 days after receipt by the Comptroller of the 11 disbursement certification to the Authority provided for in 12 this Section to be given to the Comptroller by the 13 Department, the Comptroller shall cause the orders to be 14 drawn for that amount in accordance with the directions 15 contained in the certification. 16 (i) The Board may not impose any other taxes except as 17 it may from time to time be authorized by law to impose. 18 (j) A certificate of registration issued by the State 19 Department of Revenue to a retailer under the Retailers' 20 Occupation Tax Act or under the Service Occupation Tax Act 21 shall permit the registrant to engage in a business that is 22 taxed under the tax imposed under paragraphs (b), (e), (f) or 23 (g) of this Section and no additional registration shall be 24 required under the tax. A certificate issued under the Use 25 Tax Act or the Service Use Tax Act shall be applicable with 26 regard to any tax imposed under paragraph (c) of this 27 Section. 28 (k) The provisions of any tax imposed under paragraph 29 (c) of this Section shall conform as closely as may be 30 practicable to the provisions of the Use Tax Act, including 31 without limitation conformity as to penalties with respect to 32 the tax imposed and as to the powers of the State Department 33 of Revenue to promulgate and enforce rules and regulations 34 relating to the administration and enforcement of the SB164 Enrolled -22- LRB9201884SMtm 1 provisions of the tax imposed. The taxes shall be imposed 2 only on use within the metropolitan region and at rates as 3 provided in the paragraph. 4 (l) The Board in imposing any tax as provided in 5 paragraphs (b) and (c) of this Section, shall, after seeking 6 the advice of the State Department of Revenue, provide means 7 for retailers, users or purchasers of motor fuel for purposes 8 other than those with regard to which the taxes may be 9 imposed as provided in those paragraphs to receive refunds of 10 taxes improperly paid, which provisions may be at variance 11 with the refund provisions as applicable under the Municipal 12 Retailers Occupation Tax Act. The State Department of 13 Revenue may provide for certificates of registration for 14 users or purchasers of motor fuel for purposes other than 15 those with regard to which taxes may be imposed as provided 16 in paragraphs (b) and (c) of this Section to facilitate the 17 reporting and nontaxability of the exempt sales or uses. 18 (m) Any ordinance imposing or discontinuing any tax 19 under this Section shall be adopted and a certified copy 20 thereof filed with the Department on or before June 1, 21 whereupon the Department of Revenue shall proceed to 22 administer and enforce this Section on behalf of the Regional 23 Transportation Authority as of September 1 next following 24 such adoption and filing. Beginning January 1, 1992, an 25 ordinance or resolution imposing or discontinuing the tax 26 hereunder shall be adopted and a certified copy thereof filed 27 with the Department on or before the first day of July, 28 whereupon the Department shall proceed to administer and 29 enforce this Section as of the first day of October next 30 following such adoption and filing. Beginning January 1, 31 1993, an ordinance or resolution imposing or discontinuing 32 the tax hereunder shall be adopted and a certified copy 33 thereof filed with the Department on or before the first day 34 of October, whereupon the Department shall proceed to SB164 Enrolled -23- LRB9201884SMtm 1 administer and enforce this Section as of the first day of 2 January next following such adoption and filing. 3 (n) The State Department of Revenue shall, upon 4 collecting any taxes as provided in this Section, pay the 5 taxes over to the State Treasurer as trustee for the 6 Authority. The taxes shall be held in a trust fund outside 7 the State Treasury. On or before the 25th day of each 8 calendar month, the State Department of Revenue shall prepare 9 and certify to the Comptroller of the State of Illinois the 10 amount to be paid to the Authority, which shall be the then 11 balance in the fund, less any amount determined by the 12 Department to be necessary for the payment of refunds. The 13 State Department of Revenue shall also certify to the 14 Authority the amount of taxes collected in each County other 15 than Cook County in the metropolitan region less the amount 16 necessary for the payment of refunds to taxpayers in the 17 County. With regard to the County of Cook, the certification 18 shall specify the amount of taxes collected within the City 19 of Chicago less the amount necessary for the payment of 20 refunds to taxpayers in the City of Chicago and the amount 21 collected in that portion of Cook County outside of Chicago 22 less the amount necessary for the payment of refunds to 23 taxpayers in that portion of Cook County outside of Chicago. 24 Within 10 days after receipt by the Comptroller of the 25 certification of the amount to be paid to the Authority, the 26 Comptroller shall cause an order to be drawn for the payment 27 for the amount in accordance with the direction in the 28 certification. 29 In addition to the disbursement required by the preceding 30 paragraph, an allocation shall be made in July 1991 and each 31 year thereafter to the Regional Transportation Authority. 32 The allocation shall be made in an amount equal to the 33 average monthly distribution during the preceding calendar 34 year (excluding the 2 months of lowest receipts) and the SB164 Enrolled -24- LRB9201884SMtm 1 allocation shall include the amount of average monthly 2 distribution from the Regional Transportation Authority 3 Occupation and Use Tax Replacement Fund. The distribution 4 made in July 1992 and each year thereafter under 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 of Revenue shall 8 prepare and certify to the Comptroller for disbursement the 9 allocations made in accordance with this paragraph. 10 (o) Failure to adopt a budget ordinance or otherwise to 11 comply with Section 4.01 of this Act or to adopt a Five-year 12 Program or otherwise to comply with paragraph (b) of Section 13 2.01 of this Act shall not affect the validity of any tax 14 imposed by the Authority otherwise in conformity with law. 15 (p) At no time shall a public transportation tax or 16 motor vehicle parking tax authorized under paragraphs (b), 17 (c) and (d) of this Section be in effect at the same time as 18 any retailers' occupation, use or service occupation tax 19 authorized under paragraphs (e), (f) and (g) of this Section 20 is in effect. 21 Any taxes imposed under the authority provided in 22 paragraphs (b), (c) and (d) shall remain in effect only until 23 the time as any tax authorized by paragraphs (e), (f) or (g) 24 of this Section are imposed and becomes effective. Once any 25 tax authorized by paragraphs (e), (f) or (g) is imposed the 26 Board may not reimpose taxes as authorized in paragraphs (b), 27 (c) and (d) of the Section unless any tax authorized by 28 paragraphs (e), (f) or (g) of this Section becomes 29 ineffective by means other than an ordinance of the Board. 30 (q) Any existing rights, remedies and obligations 31 (including enforcement by the Regional Transportation 32 Authority) arising under any tax imposed under paragraphs 33 (b), (c) or (d) of this Section shall not be affected by the 34 imposition of a tax under paragraphs (e), (f) or (g) of this SB164 Enrolled -25- LRB9201884SMtm 1 Section. 2 (Source: P.A. 91-51, eff. 6-30-99.) 3 Section 915. The Water Commission Act of 1985 is amended 4 by changing Section 4 as follows: 5 (70 ILCS 3720/4) (from Ch. 111 2/3, par. 254) 6 Sec. 4. (a) The board of commissioners of any county 7 water commission may, by ordinance, impose throughout the 8 territory of the commission any or all of the taxes provided 9 in this Section for its corporate purposes. However, no 10 county water commission may impose any such tax unless the 11 commission certifies the proposition of imposing the tax to 12 the proper election officials, who shall submit the 13 proposition to the voters residing in the territory at an 14 election in accordance with the general election law, and the 15 proposition has been approved by a majority of those voting 16 on the proposition. 17 The proposition shall be in the form provided in Section 18 5 or shall be substantially in the following form: 19 ------------------------------------------------------------- 20 Shall the (insert corporate 21 name of county water commission) YES 22 impose (state type of tax or ------------------------ 23 taxes to be imposed) at the NO 24 rate of 1/4%? 25 ------------------------------------------------------------- 26 Taxes imposed under this Section and civil penalties 27 imposed incident thereto shall be collected and enforced by 28 the State Department of Revenue. The Department shall have 29 the power to administer and enforce the taxes and to 30 determine all rights for refunds for erroneous payments of 31 the taxes. 32 (b) The board of commissioners may impose a County Water SB164 Enrolled -26- LRB9201884SMtm 1 Commission Retailers' Occupation Tax upon all persons engaged 2 in the business of selling tangible personal property at 3 retail in the territory of the commission at a rate of 1/4% 4 of the gross receipts from the sales made in the course of 5 such business within the territory. The tax imposed under 6 this paragraph and all civil penalties that may be assessed 7 as an incident thereof shall be collected and enforced by the 8 State Department of Revenue. The Department shall have full 9 power to administer and enforce this paragraph; to collect 10 all taxes and penalties due hereunder; to dispose of taxes 11 and penalties so collected in the manner hereinafter 12 provided; and to determine all rights to credit memoranda 13 arising on account of the erroneous payment of tax or penalty 14 hereunder. In the administration of, and compliance with, 15 this paragraph, the Department and persons who are subject to 16 this paragraph shall have the same rights, remedies, 17 privileges, immunities, powers and duties, and be subject to 18 the same conditions, restrictions, limitations, penalties, 19 exclusions, exemptions and definitions of terms, and employ 20 the same modes of procedure, as are prescribed in Sections 1, 21 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect 22 to all provisions therein other than the State rate of tax 23 except that food for human consumption that is to be consumed 24 off the premises where it is sold (other than alcoholic 25 beverages, soft drinks, and food that has been prepared for 26 immediate consumption) and prescription and nonprescription 27 medicine, drugs, medical appliances and insulin, urine 28 testing materials, syringes, and needles used by diabetics, 29 for human use, shall not be subject to tax hereunder), 2c, 3 30 (except as to the disposition of taxes and penalties 31 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 32 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the 33 Retailers' Occupation Tax Act and Section 3-7 of the Uniform 34 Penalty and Interest Act, as fully as if those provisions SB164 Enrolled -27- LRB9201884SMtm 1 were set forth herein. 2 Persons subject to any tax imposed under the authority 3 granted in this paragraph may reimburse themselves for their 4 seller's tax liability hereunder by separately stating the 5 tax as an additional charge, which charge may be stated in 6 combination, in a single amount, with State taxes that 7 sellers are required to collect under the Use Tax Act and 8 under subsection (e) of Section 4.03 of the Regional 9 Transportation Authority Act, in accordance with such bracket 10 schedules as the Department may prescribe. 11 Whenever the Department determines that a refund should 12 be made under this paragraph to a claimant instead of issuing 13 a credit memorandum, the Department shall notify the State 14 Comptroller, who shall cause the warrant to be drawn for the 15 amount specified, and to the person named, in the 16 notification from the Department. The refund shall be paid 17 by the State Treasurer out of a county water commission tax 18 fund established under paragraph (g) of this Section. 19 For the purpose of determining whether a tax authorized 20 under this paragraph is applicable, a retail sale by a 21 producer of coal or other mineral mined in Illinois is a sale 22 at retail at the place where the coal or other mineral mined 23 in Illinois is extracted from the earth. This paragraph does 24 not apply to coal or other mineral when it is delivered or 25 shipped by the seller to the purchaser at a point outside 26 Illinois so that the sale is exempt under the Federal 27 Constitution as a sale in interstate or foreign commerce. 28 If a tax is imposed under this subsection (b) a tax shall 29 also be imposed under subsections (c) and (d) of this 30 Section. 31 Nothing in this paragraph shall be construed to authorize 32 a county water commission to impose a tax upon the privilege 33 of engaging in any business which under the Constitution of 34 the United States may not be made the subject of taxation by SB164 Enrolled -28- LRB9201884SMtm 1 this State. 2 (c) If a tax has been imposed under subsection (b), a 3 County Water Commission Service Occupation Tax shall also be 4 imposed upon all persons engaged, in the territory of the 5 commission, in the business of making sales of service, who, 6 as an incident to making the sales of service, transfer 7 tangible personal property within the territory. The tax rate 8 shall be 1/4% of the selling price of tangible personal 9 property so transferred within the territory. The tax 10 imposed under this paragraph and all civil penalties that may 11 be assessed as an incident thereof shall be collected and 12 enforced by the State Department of Revenue. The Department 13 shall have full power to administer and enforce this 14 paragraph; to collect all taxes and penalties due hereunder; 15 to dispose of taxes and penalties so collected in the manner 16 hereinafter provided; and to determine all rights to credit 17 memoranda arising on account of the erroneous payment of tax 18 or penalty hereunder. In the administration of, and 19 compliance with, this paragraph, the Department and persons 20 who are subject to this paragraph shall have the same rights, 21 remedies, privileges, immunities, powers and duties, and be 22 subject to the same conditions, restrictions, limitations, 23 penalties, exclusions, exemptions and definitions of terms, 24 and employ the same modes of procedure, as are prescribed in 25 Sections 1a-1, 2 (except that the reference to State in the 26 definition of supplier maintaining a place of business in 27 this State shall mean the territory of the commission), 2a, 3 28 through 3-50 (in respect to all provisions therein other than 29 the State rate of tax except that food for human consumption 30 that is to be consumed off the premises where it is sold 31 (other than alcoholic beverages, soft drinks, and food that 32 has been prepared for immediate consumption) and prescription 33 and nonprescription medicines, drugs, medical appliances and 34 insulin, urine testing materials, syringes, and needles used SB164 Enrolled -29- LRB9201884SMtm 1 by diabetics, for human use, shall not be subject to tax 2 hereunder), 4 (except that the reference to the State shall 3 be to the territory of the commission), 5, 7, 8 (except that 4 the jurisdiction to which the tax shall be a debt to the 5 extent indicated in that Section 8 shall be the commission), 6 9 (except as to the disposition of taxes and penalties 7 collected and except that the returned merchandise credit for 8 this tax may not be taken against any State tax), 10, 11, 12 9 (except the reference therein to Section 2b of the Retailers' 10 Occupation Tax Act), 13 (except that any reference to the 11 State shall mean the territory of the commission), the first 12 paragraph of Section 15, 15.5, 16, 17, 18, 19 and 20 of the 13 Service Occupation Tax Act as fully as if those provisions 14 were set forth herein. 15 Persons subject to any tax imposed under the authority 16 granted in this paragraph may reimburse themselves for their 17 serviceman's tax liability hereunder by separately stating 18 the tax as an additional charge, which charge may be stated 19 in combination, in a single amount, with State tax that 20 servicemen are authorized to collect under the Service Use 21 Tax Act, and any tax for which servicemen may be liable under 22 subsection (f) of Sec. 4.03 of the Regional Transportation 23 Authority Act, in accordance with such bracket schedules as 24 the Department may prescribe. 25 Whenever the Department determines that a refund should 26 be made under this paragraph to a claimant instead of issuing 27 a credit memorandum, the Department shall notify the State 28 Comptroller, who shall cause the warrant to be drawn for the 29 amount specified, and to the person named, in the 30 notification from the Department. The refund shall be paid 31 by the State Treasurer out of a county water commission tax 32 fund established under paragraph (g) of this Section. 33 Nothing in this paragraph shall be construed to authorize 34 a county water commission to impose a tax upon the privilege SB164 Enrolled -30- LRB9201884SMtm 1 of engaging in any business which under the Constitution of 2 the United States may not be made the subject of taxation by 3 the State. 4 (d) If a tax has been imposed under subsection (b), a 5 tax shall also imposed upon the privilege of using, in the 6 territory of the commission, any item of tangible personal 7 property that is purchased outside the territory at retail 8 from a retailer, and that is titled or registered with an 9 agency of this State's government, at a rate of 1/4% of the 10 selling price of the tangible personal property within the 11 territory, as "selling price" is defined in the Use Tax Act. 12 The tax shall be collected from persons whose Illinois 13 address for titling or registration purposes is given as 14 being in the territory. The tax shall be collected by the 15 Department of Revenue for a county water commission. The tax 16 must be paid to the State, or an exemption determination must 17 be obtained from the Department of Revenue, before the title 18 or certificate of registration for the property may be 19 issued. The tax or proof of exemption may be transmitted to 20 the Department by way of the State agency with which, or the 21 State officer with whom, the tangible personal property must 22 be titled or registered if the Department and the State 23 agency or State officer determine that this procedure will 24 expedite the processing of applications for title or 25 registration. 26 The Department shall have full power to administer and 27 enforce this paragraph; to collect all taxes, penalties and 28 interest due hereunder; to dispose of taxes, penalties and 29 interest so collected in the manner hereinafter provided; and 30 to determine all rights to credit memoranda or refunds 31 arising on account of the erroneous payment of tax, penalty 32 or interest hereunder. In the administration of, and 33 compliance with this paragraph, the Department and persons 34 who are subject to this paragraph shall have the same rights, SB164 Enrolled -31- LRB9201884SMtm 1 remedies, privileges, immunities, powers and duties, and be 2 subject to the same conditions, restrictions, limitations, 3 penalties, exclusions, exemptions and definitions of terms 4 and employ the same modes of procedure, as are prescribed in 5 Sections 2 (except the definition of "retailer maintaining a 6 place of business in this State"), 3 through 3-80 (except 7 provisions pertaining to the State rate of tax, and except 8 provisions concerning collection or refunding of the tax by 9 retailers, and except that food for human consumption that is 10 to be consumed off the premises where it is sold (other than 11 alcoholic beverages, soft drinks, and food that has been 12 prepared for immediate consumption) and prescription and 13 nonprescription medicines, drugs, medical appliances and 14 insulin, urine testing materials, syringes, and needles used 15 by diabetics, for human use, shall not be subject to tax 16 hereunder), 4, 11, 12, 12a, 14, 15, 19 (except the portions 17 pertaining to claims by retailers and except the last 18 paragraph concerning refunds), 20, 21 and 22 of the Use Tax 19 Act and Section 3-7 of the Uniform Penalty and Interest Act 20 that are not inconsistent with this paragraph, as fully as if 21 those provisions were set forth herein. 22 Whenever the Department determines that a refund should 23 be made under this paragraph to a claimant instead of issuing 24 a credit memorandum, the Department shall notify the State 25 Comptroller, who shall cause the order to be drawn for the 26 amount specified, and to the person named, in the 27 notification from the Department. The refund shall be paid 28 by the State Treasurer out of a county water commission tax 29 fund established under paragraph (g) of this Section. 30 (e) 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), (c) or (d) SB164 Enrolled -32- LRB9201884SMtm 1 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 (f) Any ordinance imposing or discontinuing any tax 7 under this Section shall be adopted and a certified copy 8 thereof filed with the Department on or before June 1, 9 whereupon the Department of Revenue shall proceed to 10 administer and enforce this Section on behalf of the county 11 water commission as of September 1 next following the 12 adoption and filing. Beginning January 1, 1992, an ordinance 13 or resolution imposing or discontinuing the tax hereunder 14 shall be adopted and a certified copy thereof filed with the 15 Department on or before the first day of July, whereupon the 16 Department shall proceed to administer and enforce this 17 Section as of the first day of October next following such 18 adoption and filing. Beginning January 1, 1993, an ordinance 19 or resolution imposing or discontinuing the tax hereunder 20 shall be adopted and a certified copy thereof filed with the 21 Department on or before the first day of October, whereupon 22 the Department shall proceed to administer and enforce this 23 Section as of the first day of January next following such 24 adoption and filing. 25 (g) 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 commission. The taxes shall be held in a trust fund outside 29 the State Treasury. On or before the 25th day of each 30 calendar month, the State Department of Revenue shall prepare 31 and certify to the Comptroller of the State of Illinois the 32 amount to be paid to the commission, 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 SB164 Enrolled -33- LRB9201884SMtm 1 10 days after receipt by the Comptroller of the certification 2 of the amount to be paid to the commission, the Comptroller 3 shall cause an order to be drawn for the payment for the 4 amount in accordance with the direction in the certification. 5 (Source: P.A. 91-51, eff. 6-30-99.) 6 Section 999. Effective date. This Act takes effect upon 7 becoming law.