State of Illinois
92nd General Assembly
Legislation

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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 business to be used
 7        for  crime prevention, detention, and other public safety
 8        purposes?"
 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.

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