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92_SB2140eng SB2140 Engrossed LRB9211609BDdv 1 AN ACT concerning county taxes. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Counties Code is amended by changing 5 Section 5-1006.5 as follows: 6 (55 ILCS 5/5-1006.5) 7 Sec. 5-1006.5. Special County Retailers' Occupation Tax 8 For Public Safety or Transportation. 9 (a) The county board of any county may impose a tax upon 10 all persons engaged in the business of selling tangible 11 personal property, other than personal property titled or 12 registered with an agency of this State's government, at 13 retail in the county on the gross receipts from the sales 14 made in the course of business to provide revenue to be used 15 exclusively for public safety or transportation purposes in 16 that county, if a proposition for the tax has been submitted 17 to the electors of that county and approved by a majority of 18 those voting on the question. If imposed, this tax shall be 19 imposed only in one-quarter percent increments. By 20 resolution, the county board may order the proposition to be 21 submitted at any election. If the tax is imposed for 22 transportation purposes, the county board must publish notice 23 of the existence of its long-range highway transportation 24 plan as required or described in Section 5-301 of the 25 Illinois Highway Code and must make the plan publicly 26 available prior to approval of the ordinance or resolution 27 imposing the tax. The county clerk shall certify the 28 question to the proper election authority, who shall submit 29 the proposition at an election in accordance with the general 30 election law. 31 (1) The proposition for public safety purposes SB2140 Engrossed -2- LRB9211609BDdv 1 shall be in substantially the following form: 2 "Shall (name of county) be authorized to impose a 3 public safety tax at the rate of .... upon all persons 4 engaged in the business of selling tangible personal 5 property at retail in the county on gross receipts from 6 the sales made in the course of their businessto be used7for crime prevention, detention, and other public safety8purposes?" 9 For the purposes of the paragraph, "public safety 10 purposes" means crime prevention, detention, fire 11 fighting, police, medical, ambulance, or other emergency 12 services. 13 Votes shall be recorded as "Yes" or "No". 14 (2) The proposition for transportation purposes 15 shall be in substantially the following form: 16 "Shall (name of county) be authorized to impose a 17 tax at the rate of (insert rate) upon all persons engaged 18 in the business of selling tangible personal property at 19 retail in the county on gross receipts from the sales 20 made in the course of their business to be used for 21 transportation purposes?" 22 For the purposes of this paragraph, transportation 23 purposes means construction, maintenance, operation, and 24 improvements of public highways. 25 The votes shall be recorded as "Yes" or "No". 26 If a majority of the electors voting on the proposition 27 vote in favor of it, the county may impose the tax. A county 28 may not submit more than one proposition authorized by this 29 Section to the electors at any one time. 30 This additional tax may not be imposed on the sales of 31 food for human consumption that is to be consumed off the 32 premises where it is sold (other than alcoholic beverages, 33 soft drinks, and food which has been prepared for immediate 34 consumption) and prescription and non-prescription medicines, SB2140 Engrossed -3- LRB9211609BDdv 1 drugs, medical appliances and insulin, urine testing 2 materials, syringes, and needles used by diabetics. The tax 3 imposed by a county under this Section and all civil 4 penalties that may be assessed as an incident of the tax 5 shall be collected and enforced by the Illinois Department of 6 Revenue and deposited into a special fund created for that 7 purpose. The certificate of registration that is issued by 8 the Department to a retailer under the Retailers' Occupation 9 Tax Act shall permit the retailer to engage in a business 10 that is taxable without registering separately with the 11 Department under an ordinance or resolution under this 12 Section. The Department has full power to administer and 13 enforce this Section, to collect all taxes and penalties due 14 under this Section, to dispose of taxes and penalties so 15 collected in the manner provided in this Section, and to 16 determine all rights to credit memoranda arising on account 17 of the erroneous payment of a tax or penalty under this 18 Section. In the administration of and compliance with this 19 Section, the Department and persons who are subject to this 20 Section shall (i) have the same rights, remedies, privileges, 21 immunities, powers, and duties, (ii) be subject to the same 22 conditions, restrictions, limitations, penalties, and 23 definitions of terms, and (iii) employ the same modes of 24 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 25 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to 26 all provisions contained in those Sections other than the 27 State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except 28 provisions relating to transaction returns and quarter 29 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 30 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 31 of the Retailers' Occupation Tax Act and Section 3-7 of the 32 Uniform Penalty and Interest Act as if those provisions were 33 set forth in this Section. 34 Persons subject to any tax imposed under the authority SB2140 Engrossed -4- LRB9211609BDdv 1 granted in this Section may reimburse themselves for their 2 sellers' tax liability by separately stating the tax as an 3 additional charge, which charge may be stated in combination, 4 in a single amount, with State tax which sellers are required 5 to collect under the Use Tax Act, pursuant to such bracketed 6 schedules as the Department may prescribe. 7 Whenever the Department determines that a refund should 8 be made under this Section to a claimant instead of issuing a 9 credit memorandum, the Department shall notify the State 10 Comptroller, who shall cause the order to be drawn for the 11 amount specified and to the person named in the notification 12 from the Department. The refund shall be paid by the State 13 Treasurer out of the County Public Safety or Transportation 14 Retailers' Occupation Tax Fund. 15 (b) If a tax has been imposed under subsection (a), a 16 service occupation tax shall also be imposed at the same rate 17 upon all persons engaged, in the county, in the business of 18 making sales of service, who, as an incident to making those 19 sales of service, transfer tangible personal property within 20 the county as an incident to a sale of service. This tax may 21 not be imposed on sales of food for human consumption that is 22 to be consumed off the premises where it is sold (other than 23 alcoholic beverages, soft drinks, and food prepared for 24 immediate consumption) and prescription and non-prescription 25 medicines, drugs, medical appliances and insulin, urine 26 testing materials, syringes, and needles used by diabetics. 27 The tax imposed under this subsection and all civil penalties 28 that may be assessed as an incident thereof shall be 29 collected and enforced by the Department of Revenue. The 30 Department has full power to administer and enforce this 31 subsection; to collect all taxes and penalties due hereunder; 32 to dispose of taxes and penalties so collected in the manner 33 hereinafter provided; and to determine all rights to credit 34 memoranda arising on account of the erroneous payment of tax SB2140 Engrossed -5- LRB9211609BDdv 1 or penalty hereunder. In the administration of, and 2 compliance with this subsection, the Department and persons 3 who are subject to this paragraph shall (i) have the same 4 rights, remedies, privileges, immunities, powers, and duties, 5 (ii) be subject to the same conditions, restrictions, 6 limitations, penalties, exclusions, exemptions, and 7 definitions of terms, and (iii) employ the same modes of 8 procedure as are prescribed in Sections 2 (except that the 9 reference to State in the definition of supplier maintaining 10 a place of business in this State shall mean the county), 2a, 11 2b, 2c, 3 through 3-50 (in respect to all provisions therein 12 other than the State rate of tax), 4 (except that the 13 reference to the State shall be to the county), 5, 7, 8 14 (except that the jurisdiction to which the tax shall be a 15 debt to the extent indicated in that Section 8 shall be the 16 county), 9 (except as to the disposition of taxes and 17 penalties collected), 10, 11, 12 (except the reference 18 therein to Section 2b of the Retailers' Occupation Tax Act), 19 13 (except that any reference to the State shall mean the 20 county), Section 15, 16, 17, 18, 19 and 20 of the Service 21 Occupation Tax Act and Section 3-7 of the Uniform Penalty and 22 Interest Act, as fully as if those provisions were set forth 23 herein. 24 Persons subject to any tax imposed under the authority 25 granted in this subsection may reimburse themselves for their 26 serviceman's tax liability by separately stating the tax as 27 an additional charge, which charge may be stated in 28 combination, in a single amount, with State tax that 29 servicemen are authorized to collect under the Service Use 30 Tax Act, in accordance with such bracket schedules as the 31 Department may prescribe. 32 Whenever the Department determines that a refund should 33 be made under this subsection to a claimant instead of 34 issuing a credit memorandum, the Department shall notify the SB2140 Engrossed -6- LRB9211609BDdv 1 State Comptroller, who shall cause the warrant to be drawn 2 for the amount specified, and to the person named, in the 3 notification from the Department. The refund shall be paid 4 by the State Treasurer out of the County Public Safety or 5 Transportation Retailers' Occupation Fund. 6 Nothing in this subsection shall be construed to 7 authorize the county to impose a tax upon the privilege of 8 engaging in any business which under the Constitution of the 9 United States may not be made the subject of taxation by the 10 State. 11 (c) The Department shall immediately pay over to the 12 State Treasurer, ex officio, as trustee, all taxes and 13 penalties collected under this Section to be deposited into 14 the County Public Safety or Transportation Retailers' 15 Occupation Tax Fund, which shall be an unappropriated trust 16 fund held outside of the State treasury. On or before the 17 25th day of each calendar month, the Department shall prepare 18 and certify to the Comptroller the disbursement of stated 19 sums of money to the counties from which retailers have paid 20 taxes or penalties to the Department during the second 21 preceding calendar month. The amount to be paid to each 22 county, and deposited by the county into its special fund 23 created for the purposes of this Section, shall be the amount 24 (not including credit memoranda) collected under this Section 25 during the second preceding calendar month by the Department 26 plus an amount the Department determines is necessary to 27 offset any amounts that were erroneously paid to a different 28 taxing body, and not including (i) an amount equal to the 29 amount of refunds made during the second preceding calendar 30 month by the Department on behalf of the county and (ii) any 31 amount that the Department determines is necessary to offset 32 any amounts that were payable to a different taxing body but 33 were erroneously paid to the county. Within 10 days after 34 receipt by the Comptroller of the disbursement certification SB2140 Engrossed -7- LRB9211609BDdv 1 to the counties provided for in this Section to be given to 2 the Comptroller by the Department, the Comptroller shall 3 cause the orders to be drawn for the respective amounts in 4 accordance with directions contained in the certification. 5 In addition to the disbursement required by the preceding 6 paragraph, an allocation shall be made in March of each year 7 to each county that received more than $500,000 in 8 disbursements under the preceding paragraph in the preceding 9 calendar year. The allocation shall be in an amount equal to 10 the average monthly distribution made to each such county 11 under the preceding paragraph during the preceding calendar 12 year (excluding the 2 months of highest receipts). The 13 distribution made in March of each year subsequent to the 14 year in which an allocation was made pursuant to this 15 paragraph and the preceding paragraph shall be reduced by the 16 amount allocated and disbursed under this paragraph in the 17 preceding calendar year. The Department shall prepare and 18 certify to the Comptroller for disbursement the allocations 19 made in accordance with this paragraph. 20 (d) For the purpose of determining the local 21 governmental unit whose tax is applicable, a retail sale by a 22 producer of coal or another mineral mined in Illinois is a 23 sale at retail at the place where the coal or other mineral 24 mined in Illinois is extracted from the earth. This 25 paragraph does not apply to coal or another mineral when it 26 is delivered or shipped by the seller to the purchaser at a 27 point outside Illinois so that the sale is exempt under the 28 United States Constitution as a sale in interstate or foreign 29 commerce. 30 (e) Nothing in this Section shall be construed to 31 authorize a county to impose a tax upon the privilege of 32 engaging in any business that under the Constitution of the 33 United States may not be made the subject of taxation by this 34 State. SB2140 Engrossed -8- LRB9211609BDdv 1 (e-5) If a county imposes a tax under this Section, the 2 county board may, by ordinance, discontinue or lower the rate 3 of the tax. If the county board lowers the tax rate or 4 discontinues the tax, a referendum must be held in accordance 5 with subsection (a) of this Section in order to increase the 6 rate of the tax or to reimpose the discontinued tax. 7 (f) Beginning April 1, 1998, the results of any election 8 authorizing a proposition to impose a tax under this Section 9 or effecting a change in the rate of tax, or any ordinance 10 lowering the rate or discontinuing the tax, shall be 11 certified by the county clerk and filed with the Illinois 12 Department of Revenue either (i) on or before the first day 13 of April, whereupon the Department shall proceed to 14 administer and enforce the tax as of the first day of July 15 next following the filing; or (ii) on or before the first day 16 of October, whereupon the Department shall proceed to 17 administer and enforce the tax as of the first day of January 18 next following the filing. 19 (g) When certifying the amount of a monthly disbursement 20 to a county under this Section, the Department shall increase 21 or decrease the amounts by an amount necessary to offset any 22 miscalculation of previous disbursements. The offset amount 23 shall be the amount erroneously disbursed within the previous 24 6 months from the time a miscalculation is discovered. 25 (h) This Section may be cited as the "Special County 26 Occupation Tax For Public Safety or Transportation Law". 27 (i) For purposes of this Section, "public safety" 28 includes, but is not limited to, crime prevention, detention, 29 fire fighting, police, medical, ambulance, or other emergency 30 services. For the purposes of this Section, "transportation" 31 includes, but is not limited to, the construction, 32 maintenance, operation, and improvement of public highways 33 and any other purpose for which a county may expend funds 34 under the Illinois Highway Code. SB2140 Engrossed -9- LRB9211609BDdv 1 (Source: P.A. 89-107, eff. 1-1-96; 89-718, eff. 3-7-97; 2 90-190, eff. 7-24-97; 90-267, eff. 7-30-97; 90-552, eff. 3 12-12-97; 90-562, eff. 12-16-97; 90-655, eff. 7-30-98; 4 90-689, eff. 7-31-98.) 5 Section 99. Effective date. This Act takes effect upon 6 becoming law.