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Public Act 102-1062


 

Public Act 1062 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-1062
 
HB4326 EnrolledLRB102 21969 AWJ 31096 b

    AN ACT concerning local government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Counties Code is amended by changing
Section 5-1006.7 as follows:
 
    (55 ILCS 5/5-1006.7)
    Sec. 5-1006.7. School facility and resources occupation
taxes.
    (a) In any county, a tax shall be imposed upon all persons
engaged in the business of selling tangible personal property,
other than personal property titled or registered with an
agency of this State's government, at retail in the county on
the gross receipts from the sales made in the course of
business to provide revenue to be used exclusively for (i)
school facility purposes (except as otherwise provided in this
Section), (ii) school resource officers and mental health
professionals, or (iii) school facility purposes, school
resource officers, and mental health professionals if a
proposition for the tax has been submitted to the electors of
that county and approved by a majority of those voting on the
question as provided in subsection (c). The tax under this
Section shall be imposed only in one-quarter percent
increments and may not exceed 1%.
    This additional tax may not be imposed on tangible
personal property taxed at the 1% rate under the Retailers'
Occupation Tax Act. Beginning December 1, 2019 and through
December 31, 2020, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If the county does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. The county must comply
with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Section, "airport-related purposes"
has the meaning ascribed in Section 6z-20.2 of the State
Finance Act. Beginning January 1, 2021, this tax is not
imposed on sales of aviation fuel for so long as the revenue
use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the county. The Department of Revenue has full
power to administer and enforce this subsection, to collect
all taxes and penalties due under this subsection, to dispose
of taxes and penalties so collected in the manner provided in
this subsection, and to determine all rights to credit
memoranda arising on account of the erroneous payment of a tax
or penalty under this subsection. The Department shall deposit
all taxes and penalties collected under this subsection into a
special fund created for that purpose.
    In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection (i) have the same rights, remedies, privileges,
immunities, powers, and duties, (ii) are subject to the same
conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) shall employ the same modes of
procedure as are set forth in Sections 1 through 1o, 2 through
2-70 (in respect to all provisions contained in those Sections
other than the State rate of tax), 2a through 2h, 3 (except as
to the disposition of taxes and penalties collected, and
except that the retailer's discount is not allowed for taxes
paid on aviation fuel that are subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c,
6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
Occupation Tax Act and all provisions of the Uniform Penalty
and Interest Act as if those provisions were set forth in this
subsection.
    The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act permits the retailer to engage in a business that is
taxable without registering separately with the Department
under an ordinance or resolution under this subsection.
    Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
seller's tax liability by separately stating that tax as an
additional charge, which may be stated in combination, in a
single amount, with State tax that sellers are required to
collect under the Use Tax Act, pursuant to any bracketed
schedules set forth by the Department.
    (b) If a tax has been imposed under subsection (a), then a
service occupation tax must also be imposed at the same rate
upon all persons engaged, in the county, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the county as an incident to a sale of service.
    This tax may not be imposed on tangible personal property
taxed at the 1% rate under the Service Occupation Tax Act.
Beginning December 1, 2019 and through December 31, 2020, this
tax is not imposed on sales of aviation fuel unless the tax
revenue is expended for airport-related purposes. If the
county does not have an airport-related purpose to which it
dedicates aviation fuel tax revenue, then aviation fuel is
excluded from the tax. The county must comply with the
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act. For
purposes of this Section, "airport-related purposes" has the
meaning ascribed in Section 6z-20.2 of the State Finance Act.
Beginning January 1, 2021, this tax is not imposed on sales of
aviation fuel for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
    The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department and deposited into a
special fund created for that purpose. The Department has full
power to administer and enforce this subsection, to collect
all taxes and penalties due under this subsection, to dispose
of taxes and penalties so collected in the manner provided in
this subsection, and to determine all rights to credit
memoranda arising on account of the erroneous payment of a tax
or penalty under this subsection.
    In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection shall (i) have the same rights, remedies,
privileges, immunities, powers and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties and
definition of terms, and (iii) employ the same modes of
procedure as are set forth in Sections 2 (except that that
reference to State in the definition of supplier maintaining a
place of business in this State means the county), 2a through
2d, 3 through 3-50 (in respect to all provisions contained in
those Sections other than the State rate of tax), 4 (except
that the reference to the State shall be to the county), 5, 7,
8 (except that the jurisdiction to which the tax is a debt to
the extent indicated in that Section 8 is the county), 9
(except as to the disposition of taxes and penalties
collected, and except that the retailer's discount is not
allowed for taxes paid on aviation fuel that are subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133), 10, 11, 12 (except the reference therein to Section 2b
of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State means the county), Section 15, 16, 17,
18, 19, and 20 of the Service Occupation Tax Act and all
provisions of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
    Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which may be stated in combination, in a
single amount, with State tax that servicemen are authorized
to collect under the Service Use Tax Act, pursuant to any
bracketed schedules set forth by the Department.
    (c) The tax under this Section may not be imposed until the
question of imposing the tax has been submitted to the
electors of the county at a regular election and approved by a
majority of the electors voting on the question. For all
regular elections held prior to August 23, 2011 (the effective
date of Public Act 97-542), upon a resolution by the county
board or a resolution by school district boards that represent
at least 51% of the student enrollment within the county, the
county board must certify the question to the proper election
authority in accordance with the Election Code.
    For all regular elections held prior to August 23, 2011
(the effective date of Public Act 97-542), the election
authority must submit the question in substantially the
following form:
        Shall (name of county) be authorized to impose a
    retailers' occupation tax and a service occupation tax
    (commonly referred to as a "sales tax") at a rate of
    (insert rate) to be used exclusively for school facility
    purposes?
    The election authority must record the votes as "Yes" or
"No".
    If a majority of the electors voting on the question vote
in the affirmative, then the county may, thereafter, impose
the tax.
    For all regular elections held on or after August 23, 2011
(the effective date of Public Act 97-542), the regional
superintendent of schools for the county must, upon receipt of
a resolution or resolutions of school district boards that
represent more than 50% of the student enrollment within the
county, certify the question to the proper election authority
for submission to the electors of the county at the next
regular election at which the question lawfully may be
submitted to the electors, all in accordance with the Election
Code.
    For all regular elections held on or after August 23, 2011
(the effective date of Public Act 97-542) and before August
23, 2019 (the effective date of Public Act 101-455), the
election authority must submit the question in substantially
the following form:
        Shall a retailers' occupation tax and a service
    occupation tax (commonly referred to as a "sales tax") be
    imposed in (name of county) at a rate of (insert rate) to
    be used exclusively for school facility purposes?
    The election authority must record the votes as "Yes" or
"No".
    If a majority of the electors voting on the question vote
in the affirmative, then the tax shall be imposed at the rate
set forth in the question.
    For all regular elections held on or after August 23, 2019
(the effective date of Public Act 101-455), the election
authority must submit the question as follows:
        (1) If the referendum is to expand the use of revenues
    from a currently imposed tax exclusively for school
    facility purposes to include school resource officers and
    mental health professionals, the question shall be in
    substantially the following form:
            In addition to school facility purposes, shall
        (name of county) school districts be authorized to use
        revenues from the tax commonly referred to as the
        school facility sales tax that is currently imposed in
        (name of county) at a rate of (insert rate) for school
        resource officers and mental health professionals?
        (2) If the referendum is to increase the rate of a tax
    currently imposed exclusively for school facility purposes
    at less than 1% and dedicate the additional revenues for
    school resource officers and mental health professionals,
    the question shall be in substantially the following form:
            Shall the tax commonly referred to as the school
        facility sales tax that is currently imposed in (name
        of county) at the rate of (insert rate) be increased to
        a rate of (insert rate) with the additional revenues
        used exclusively for school resource officers and
        mental health professionals?
        (3) If the referendum is to impose a tax in a county
    that has not previously imposed a tax under this Section
    exclusively for school facility purposes, the question
    shall be in substantially the following form:
            Shall a retailers' occupation tax and a service
        occupation tax (commonly referred to as a sales tax)
        be imposed in (name of county) at a rate of (insert
        rate) to be used exclusively for school facility
        purposes?
        (4) If the referendum is to impose a tax in a county
    that has not previously imposed a tax under this Section
    exclusively for school resource officers and mental health
    professionals, the question shall be in substantially the
    following form:
            Shall a retailers' occupation tax and a service
        occupation tax (commonly referred to as a sales tax)
        be imposed in (name of county) at a rate of (insert
        rate) to be used exclusively for school resource
        officers and mental health professionals?
        (5) If the referendum is to impose a tax in a county
    that has not previously imposed a tax under this Section
    exclusively for school facility purposes, school resource
    officers, and mental health professionals, the question
    shall be in substantially the following form:
            Shall a retailers' occupation tax and a service
        occupation tax (commonly referred to as a sales tax)
        be imposed in (name of county) at a rate of (insert
        rate) to be used exclusively for school facility
        purposes, school resource officers, and mental health
        professionals?
    The election authority must record the votes as "Yes" or
"No".
    If a majority of the electors voting on the question vote
in the affirmative, then the tax shall be imposed at the rate
set forth in the question.
    For the purposes of this subsection (c), "enrollment"
means the head count of the students residing in the county on
the last school day of September of each year, which must be
reported on the Illinois State Board of Education Public
School Fall Enrollment/Housing Report.
    (d) Except as otherwise provided, the Department shall
immediately pay over to the State Treasurer, ex officio, as
trustee, all taxes and penalties collected under this Section
to be deposited into the School Facility Occupation Tax Fund,
which shall be an unappropriated trust fund held outside the
State treasury. Taxes and penalties collected on aviation fuel
sold on or after December 1, 2019 and through December 31,
2020, shall be immediately paid over by the Department to the
State Treasurer, ex officio, as trustee, for deposit into the
Local Government Aviation Trust Fund. The Department shall
only pay moneys into the Local Government Aviation Trust Fund
under this Section for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
county.
    On or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the regional
superintendents of schools in counties from which retailers or
servicemen have paid taxes or penalties to the Department
during the second preceding calendar month. The amount to be
paid to each regional superintendent of schools and disbursed
to him or her in accordance with Section 3-14.31 of the School
Code, is equal to the amount (not including credit memoranda
and not including taxes and penalties collected on aviation
fuel sold on or after December 1, 2019 and through December 31,
2020) collected from the county under this Section during the
second preceding calendar month by the Department, (i) less 2%
of that amount (except the amount collected on aviation fuel
sold on or after December 1, 2019 and through December 31,
2020), of which 50% shall be deposited into the Tax Compliance
and Administration Fund and shall be used by the Department,
subject to appropriation, to cover the costs of the Department
in administering and enforcing the provisions of this Section,
on behalf of the county, and 50% shall be distributed to the
regional superintendent of schools to cover the costs in
administering and enforcing the provisions of this Section,
(ii) plus an amount that the Department determines is
necessary to offset any amounts that were erroneously paid to
a different taxing body; (iii) less an amount equal to the
amount of refunds made during the second preceding calendar
month by the Department on behalf of the county; and (iv) less
any amount that the Department determines is necessary to
offset any amounts that were payable to a different taxing
body but were erroneously paid to the county. When certifying
the amount of a monthly disbursement to a regional
superintendent of schools under this Section, the Department
shall increase or decrease the amounts by an amount necessary
to offset any miscalculation of previous disbursements within
the previous 6 months from the time a miscalculation is
discovered.
    Within 10 days after receipt by the Comptroller from the
Department of the disbursement certification to the regional
superintendents of the schools provided for in this Section,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with directions contained in
the certification.
    If the Department determines that a refund should be made
under this Section to a claimant instead of issuing a credit
memorandum, then the Department shall notify the Comptroller,
who shall cause the order to be drawn for the amount specified
and to the person named in the notification from the
Department. The refund shall be paid by the Treasurer out of
the School Facility Occupation Tax Fund or the Local
Government Aviation Trust Fund, as appropriate.
    (e) For the purposes of determining the local governmental
unit whose tax is applicable, a retail sale by a producer of
coal or another mineral mined in Illinois is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This subsection does not apply to
coal or another mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
    (f) Nothing in this Section may be construed to authorize
a tax to be imposed upon the privilege of engaging in any
business that under the Constitution of the United States may
not be made the subject of taxation by this State.
    (g) If a county board imposes a tax under this Section
pursuant to a referendum held before August 23, 2011 (the
effective date of Public Act 97-542) at a rate below the rate
set forth in the question approved by a majority of electors of
that county voting on the question as provided in subsection
(c), then the county board may, by ordinance, increase the
rate of the tax up to the rate set forth in the question
approved by a majority of electors of that county voting on the
question as provided in subsection (c). If a county board
imposes a tax under this Section pursuant to a referendum held
before August 23, 2011 (the effective date of Public Act
97-542), then the board may, by ordinance, discontinue or
reduce the rate of the tax. If a tax is imposed under this
Section pursuant to a referendum held on or after August 23,
2011 (the effective date of Public Act 97-542) and before
August 23, 2019 (the effective date of Public Act 101-455),
then the county board may reduce or discontinue the tax, but
only in accordance with subsection (h-5) of this Section. If a
tax is imposed under this Section pursuant to a referendum
held on or after August 23, 2019 (the effective date of Public
Act 101-455), then the county board may reduce or discontinue
the tax, but only in accordance with subsection (h-10). If,
however, a school board issues bonds that are secured by the
proceeds of the tax under this Section, then the county board
may not reduce the tax rate or discontinue the tax if that rate
reduction or discontinuance would adversely affect the school
board's ability to pay the principal and interest on those
bonds as they become due or necessitate the extension of
additional property taxes to pay the principal and interest on
those bonds. If the county board reduces the tax rate or
discontinues the tax, then a referendum must be held in
accordance with subsection (c) of this Section in order to
increase the rate of the tax or to reimpose the discontinued
tax.
    Until January 1, 2014, the results of any election that
imposes, reduces, or discontinues a tax under this Section
must be certified by the election authority, and any ordinance
that increases or lowers the rate or discontinues the tax must
be certified by the county clerk and, in each case, filed with
the Illinois Department of Revenue either (i) on or before the
first day of April, whereupon the Department shall proceed to
administer and enforce the tax or change in the rate as of the
first day of July next following the filing; or (ii) on or
before the first day of October, whereupon the Department
shall proceed to administer and enforce the tax or change in
the rate as of the first day of January next following the
filing.
    Beginning January 1, 2014, the results of any election
that imposes, reduces, or discontinues a tax under this
Section must be certified by the election authority, and any
ordinance that increases or lowers the rate or discontinues
the tax must be certified by the county clerk and, in each
case, filed with the Illinois Department of Revenue either (i)
on or before the first day of May, whereupon the Department
shall proceed to administer and enforce the tax or change in
the rate as of the first day of July next following the filing;
or (ii) on or before the first day of October, whereupon the
Department shall proceed to administer and enforce the tax or
change in the rate as of the first day of January next
following the filing.
    (h) For purposes of this Section, "school facility
purposes" means (i) the acquisition, development,
construction, reconstruction, rehabilitation, improvement,
financing, architectural planning, and installation of capital
facilities consisting of buildings, structures, and durable
equipment and for the acquisition and improvement of real
property and interest in real property required, or expected
to be required, in connection with the capital facilities and
(ii) the payment of bonds or other obligations heretofore or
hereafter issued, including bonds or other obligations
heretofore or hereafter issued to refund or to continue to
refund bonds or other obligations issued, for school facility
purposes, provided that the taxes levied to pay those bonds
are abated by the amount of the taxes imposed under this
Section that are used to pay those bonds. "School facility
purposes" also includes fire prevention, safety, energy
conservation, accessibility, school security, and specified
repair purposes set forth under Section 17-2.11 of the School
Code.
    (h-5) A county board in a county where a tax has been
imposed under this Section pursuant to a referendum held on or
after August 23, 2011 (the effective date of Public Act
97-542) and before August 23, 2019 (the effective date of
Public Act 101-455) may, by ordinance or resolution, submit to
the voters of the county the question of reducing or
discontinuing the tax. In the ordinance or resolution, the
county board shall certify the question to the proper election
authority in accordance with the Election Code. The election
authority must submit the question in substantially the
following form:
        Shall the school facility retailers' occupation tax
    and service occupation tax (commonly referred to as the
    "school facility sales tax") currently imposed in (name of
    county) at a rate of (insert rate) be (reduced to (insert
    rate))(discontinued)?
If a majority of the electors voting on the question vote in
the affirmative, then, subject to the provisions of subsection
(g) of this Section, the tax shall be reduced or discontinued
as set forth in the question.
    (h-10) A county board in a county where a tax has been
imposed under this Section pursuant to a referendum held on or
after August 23, 2019 (the effective date of Public Act
101-455) may, by ordinance or resolution, submit to the voters
of the county the question of reducing or discontinuing the
tax. In the ordinance or resolution, the county board shall
certify the question to the proper election authority in
accordance with the Election Code. The election authority must
submit the question in substantially the following form:
        Shall the school facility and resources retailers'
    occupation tax and service occupation tax (commonly
    referred to as the school facility and resources sales
    tax) currently imposed in (name of county) at a rate of
    (insert rate) be (reduced to (insert rate))
    (discontinued)?
    The election authority must record the votes as "Yes" or
"No".
    If a majority of the electors voting on the question vote
in the affirmative, then, subject to the provisions of
subsection (g) of this Section, the tax shall be reduced or
discontinued as set forth in the question.
    (i) This Section does not apply to Cook County.
    (j) This Section may be cited as the County School
Facility and Resources Occupation Tax Law.
(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19;
101-455, eff. 8-23-19; 101-604, eff. 12-13-19.)
 
    Section 99. Effective date. This Act takes effect July 1,
2022.

Effective Date: 7/1/2022