State of Illinois
92nd General Assembly
Legislation

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92_SB0164eng

 
SB164 Engrossed                                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
 
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 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.
 
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 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.
 
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 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
 
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 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
 
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 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.
 
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 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
 
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 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
 
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 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
 
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 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
 
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 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
 
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 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
 
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 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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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 Engrossed             -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.

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