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Public Act 102-0379
Public Act 0379 102ND GENERAL ASSEMBLY
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Public Act 102-0379
| | SB2278 Enrolled | LRB102 16606 HLH 22004 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 5-1006.5 as follows:
| (55 ILCS 5/5-1006.5)
| Sec. 5-1006.5. Special County Retailers' Occupation Tax
| For Public Safety, Public Facilities, Mental Health, Substance | Abuse, or Transportation. | (a) The county board of any county may impose a
tax 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 public safety, public facility, mental health, | substance abuse, or transportation purposes in that county | (except as otherwise provided in this Section), 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. If imposed, this tax
shall be imposed only in | one-quarter percent increments. By resolution, the
county | board may order the proposition to be submitted at any |
| election.
If the tax is imposed for
transportation purposes | for expenditures for public highways or as
authorized
under | the Illinois Highway Code, the county board must publish | notice
of the existence of its long-range highway | transportation
plan as required or described in Section 5-301 | of the Illinois
Highway Code and must make the plan publicly | available prior to
approval of the ordinance or resolution
| imposing the tax. If the tax is imposed for transportation | purposes for
expenditures for passenger rail transportation, | the county board must publish
notice of the existence of its | long-range passenger rail transportation plan
and
must make | the plan publicly available prior to approval of the ordinance | or
resolution imposing the tax. | If a tax is imposed for public facilities purposes, then | the name of the project may be included in the proposition at | the discretion of the county board as determined in the | enabling resolution. For example, the "XXX Nursing Home" or | the "YYY Museum". | The county clerk shall certify the
question to the proper | election authority, who
shall submit the proposition at an | election in accordance with the general
election law.
| (1) The proposition for public safety purposes shall | be in
substantially the following form: | "To pay for public safety purposes, shall (name of | county) be authorized to impose an increase on its share | of local sales taxes by (insert rate)?" |
| As additional information on the ballot below the | question shall appear the following: | "This would mean that a consumer would pay an | additional (insert amount) in sales tax for every $100 of | tangible personal property bought at retail."
| The county board may also opt to establish a sunset | provision at which time the additional sales tax would | cease being collected, if not terminated earlier by a vote | of the county board. If the county board votes to include a | sunset provision, the proposition for public safety | purposes shall be in substantially the following form: | "To pay for public safety purposes, shall (name of | county) be authorized to impose an increase on its share | of local sales taxes by (insert rate) for a period not to | exceed (insert number of years)?" | As additional information on the ballot below the | question shall appear the following: | "This would mean that a consumer would pay an | additional (insert amount) in sales tax for every $100 of | tangible personal property bought at retail. If imposed, | the additional tax would cease being collected at the end | of (insert number of years), if not terminated earlier by | a vote of the county board."
| For the purposes of the
paragraph, "public safety | purposes" means
crime prevention, detention, fire | fighting, police, medical, ambulance, or
other emergency |
| services.
| Votes shall be recorded as "Yes" or "No".
| Beginning on the January 1 or July 1, whichever is | first, that occurs not less than 30 days after May 31, 2015 | (the effective date of Public Act 99-4), Adams County may | impose a public safety retailers' occupation tax and | service occupation tax at the rate of 0.25%, as provided | in the referendum approved by the voters on April 7, 2015, | notwithstanding the omission of the additional information | that is otherwise required to be printed on the ballot | below the question pursuant to this item (1). | (2) The proposition for transportation purposes shall | be in
substantially
the following form: | "To pay for improvements to roads and other | transportation purposes, shall (name of county) be | authorized to impose an increase on its share of local | sales taxes by (insert rate)?" | As additional information on the ballot below the | question shall appear the following: | "This would mean that a consumer would pay an | additional (insert amount) in sales tax for every $100 of | tangible personal property bought at retail."
| The county board may also opt to establish a sunset | provision at which time the additional sales tax would | cease being collected, if not terminated earlier by a vote | of the county board. If the county board votes to include a |
| sunset provision, the proposition for transportation | purposes shall be in substantially the following form: | "To pay for road improvements and other transportation | purposes, shall (name of county) be authorized to impose | an increase on its share of local sales taxes by (insert | rate) for a period not to exceed (insert number of | years)?" | As additional information on the ballot below the | question shall appear the following: | "This would mean that a consumer would pay an | additional (insert amount) in sales tax for every $100 of | tangible personal property bought at retail. If imposed, | the additional tax would cease being collected at the end | of (insert number of years), if not terminated earlier by | a vote of the county board."
| For the purposes of this paragraph, transportation | purposes means
construction, maintenance, operation, and | improvement of
public highways, any other purpose for | which a county may expend funds under
the Illinois Highway | Code, and passenger rail transportation.
| The votes shall be recorded as "Yes" or "No".
| (3) The proposition for public facilities purposes | shall be in substantially the following form: | "To pay for public facilities purposes, shall (name of
| county) be authorized to impose an increase on its share | of
local sales taxes by (insert rate)?" |
| As additional information on the ballot below the
| question shall appear the following: | "This would mean that a consumer would pay an
| additional (insert amount) in sales tax for every $100 of
| tangible personal property bought at retail." | The county board may also opt to establish a sunset
| provision at which time the additional sales tax would
| cease being collected, if not terminated earlier by a vote
| of the county board. If the county board votes to include a
| sunset provision, the proposition for public facilities
| purposes shall be in substantially the following form: | "To pay for public facilities purposes, shall (name of
| county) be authorized to impose an increase on its share | of
local sales taxes by (insert rate) for a period not to
| exceed (insert number of years)?" | As additional information on the ballot below the
| question shall appear the following: | "This would mean that a consumer would pay an
| additional (insert amount) in sales tax for every $100 of
| tangible personal property bought at retail. If imposed,
| the additional tax would cease being collected at the end
| of (insert number of years), if not terminated earlier by | a
vote of the county board." | For purposes of this Section, "public facilities | purposes" means 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 public facilities, for use by the | county for the furnishing of governmental services to its | citizens, including, but not limited to, museums and | nursing homes. | The votes shall be recorded as "Yes" or "No". | (4) The proposition for mental health purposes shall | be in substantially the following form: | "To pay for mental health purposes, shall (name of
| county) be authorized to impose an increase on its share | of
local sales taxes by (insert rate)?" | As additional information on the ballot below the
| question shall appear the following: | "This would mean that a consumer would pay an
| additional (insert amount) in sales tax for every $100 of
| tangible personal property bought at retail." | The county board may also opt to establish a sunset
| provision at which time the additional sales tax would
| cease being collected, if not terminated earlier by a vote
| of the county board. If the county board votes to include a
| sunset provision, the proposition for public facilities
| purposes shall be in substantially the following form: |
| "To pay for mental health purposes, shall (name of
| county) be authorized to impose an increase on its share | of
local sales taxes by (insert rate) for a period not to
| exceed (insert number of years)?" | As additional information on the ballot below the
| question shall appear the following: | "This would mean that a consumer would pay an
| additional (insert amount) in sales tax for every $100 of
| tangible personal property bought at retail. If imposed,
| the additional tax would cease being collected at the end
| of (insert number of years), if not terminated earlier by | a
vote of the county board." | The votes shall be recorded as "Yes" or "No". | (5) The proposition for substance abuse purposes shall | be in substantially the following form: | "To pay for substance abuse purposes, shall (name of
| county) be authorized to impose an increase on its share | of
local sales taxes by (insert rate)?" | As additional information on the ballot below the
| question shall appear the following: | "This would mean that a consumer would pay an
| additional (insert amount) in sales tax for every $100 of
| tangible personal property bought at retail." | The county board may also opt to establish a sunset
| provision at which time the additional sales tax would
| cease being collected, if not terminated earlier by a vote
|
| of the county board. If the county board votes to include a
| sunset provision, the proposition for public facilities
| purposes shall be in substantially the following form: | "To pay for substance abuse purposes, shall (name of
| county) be authorized to impose an increase on its share | of
local sales taxes by (insert rate) for a period not to
| exceed (insert number of years)?" | As additional information on the ballot below the
| question shall appear the following: | "This would mean that a consumer would pay an
| additional (insert amount) in sales tax for every $100 of
| tangible personal property bought at retail. If imposed,
| the additional tax would cease being collected at the end
| of (insert number of years), if not terminated earlier by | a
vote of the county board." | The votes shall be recorded as "Yes" or "No". | If a majority of the electors voting on
the proposition | vote in favor of it, the county may impose the tax.
A county | may not submit more than one proposition authorized by this | Section
to the electors at any one time.
| 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 tax imposed by a county under this | Section and
all civil penalties that may be assessed as an | incident of the tax shall be
collected and enforced by the | Illinois Department of Revenue and deposited
into a special | fund created for that purpose. The certificate
of registration | that is issued by the Department to a retailer under the
| Retailers' Occupation Tax Act shall permit the retailer to | engage in a business
that is taxable without registering | separately with the Department under an
ordinance or | resolution under this Section. The Department has full
power | to administer and enforce this Section, to collect all taxes | and
penalties due under this Section, to dispose of taxes and | penalties so
collected in the manner provided in this Section, | and to determine
all rights to credit memoranda arising on | account of the erroneous payment of
a tax or penalty under this | Section. In the administration of and compliance
with this | Section, the Department and persons who are subject to this |
| Section
shall (i) have the same rights, remedies, privileges, | immunities, powers, and
duties, (ii) be subject to the same | conditions, restrictions, limitations,
penalties, and | definitions of terms, and (iii) employ the same modes of
| procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, | 1f,
1i, 1j,
1k, 1m, 1n,
2 through 2-70 (in respect to all | provisions contained in those Sections
other than the
State | rate of tax), 2a, 2b, 2c, 3 (except provisions
relating to
| transaction returns and quarter monthly payments, and except | that the retailer's discount is not allowed for taxes paid on | aviation fuel that are deposited into the Local Government | Aviation Trust Fund), 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 Section 3-7 of the | Uniform Penalty and
Interest Act as if those provisions were | set forth in this Section.
| Persons subject to any tax imposed under the authority | granted in this
Section may reimburse themselves for their | sellers' tax liability by
separately stating the tax as an | additional charge, which charge may be stated
in combination, | in a single amount, with State tax which sellers are required
| to collect under the Use Tax Act, pursuant to such bracketed | schedules as the
Department may prescribe.
| Whenever the Department determines that a refund should be | made under this
Section to a claimant instead of issuing a | credit memorandum, the Department
shall notify the State |
| 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 State | Treasurer out of the County
Public Safety, Public Facilities, | Mental Health, Substance Abuse, or Transportation Retailers' | Occupation Tax Fund or the Local Government Aviation Trust | Fund, as appropriate.
| (b) If a tax has been imposed under subsection (a), a
| service occupation tax shall
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 of Revenue. The Department has
full power to
| administer and enforce this subsection; to collect all taxes | and penalties
due hereunder; to dispose of taxes and penalties | so collected in the manner
hereinafter provided; and to | determine all rights to credit memoranda
arising on account of | the erroneous payment of tax or penalty hereunder.
In the | administration of and compliance with this subsection, the
| Department and persons who are subject to this paragraph shall | (i) have the
same rights, remedies, privileges, immunities, | powers, and duties, (ii) be
subject to the same conditions, | restrictions, limitations, penalties,
exclusions, exemptions, | and definitions of terms, and (iii) employ the same
modes
of | procedure as are prescribed in Sections 2 (except that the
| reference to State in the definition of supplier maintaining a | place of
business in this State shall mean the county), 2a, 2b, | 2c, 3 through
3-50 (in respect to all provisions therein 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 shall be a debt to
the extent | indicated in that Section 8 shall be 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 deposited into the Local | Government Aviation Trust Fund), 10, 11, 12 (except the | reference therein to Section 2b of the
Retailers' Occupation | Tax Act), 13 (except that any reference to the State
shall mean | the county), Section 15, 16,
17, 18, 19, and 20 of the Service | Occupation Tax Act, and Section 3-7 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
charge may be stated in combination, | in a single amount, with State tax
that servicemen are | authorized to collect under the Service Use Tax Act, in
| accordance with such bracket schedules as the Department may | prescribe.
| Whenever the Department determines that a refund should be | made under this
subsection to a claimant instead of issuing a | credit memorandum, the Department
shall notify the State | Comptroller, who shall cause the warrant 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 State | Treasurer out
of the County Public Safety, Public Facilities, | Mental Health, Substance Abuse, or Transportation Retailers' | Occupation Fund or the Local Government Aviation Trust Fund, | as appropriate.
|
| Nothing in this subsection shall be construed to authorize | the county
to impose a tax upon the privilege of engaging in | any business which under
the Constitution of the United States | may not be made the subject of taxation
by the State.
| (c) Except as otherwise provided in this paragraph, 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 County Public | Safety, Public Facilities, Mental Health, Substance Abuse, or | Transportation Retailers'
Occupation Tax Fund, which
shall be | an unappropriated trust fund held outside of 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 Act 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. | As soon as possible after the first day of each month, | beginning January 1, 2011, upon certification of the | Department of Revenue, the Comptroller shall order | transferred, and the Treasurer shall transfer, to the STAR | Bonds Revenue Fund the local sales tax increment, as defined | in the Innovation Development and Economy Act, collected under | this Section during the second preceding calendar month for |
| sales within a STAR bond district. | After the monthly transfer to the STAR Bonds Revenue Fund, | 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 counties from | which retailers have paid
taxes or penalties to the Department | during the second preceding
calendar month. The amount to be | paid to each county, and deposited by the
county into its | special fund created for the purposes of this Section, shall
| be 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 under this Section during the second
preceding
| calendar month by the Department plus an amount the Department | determines is
necessary to offset any amounts that were | erroneously paid to a different
taxing body, and not including | (i) an amount equal to the amount of refunds
made
during the | second preceding calendar month by the Department on behalf of
| the county, (ii) 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, | (iii) any amounts that are transferred to the STAR Bonds | Revenue Fund, and (iv) 1.5% of the remainder, which shall be | transferred into the Tax Compliance and Administration Fund. | The Department, at the time of each monthly disbursement to | the counties, shall prepare and certify to the State |
| Comptroller the amount to be transferred into the Tax | Compliance and Administration Fund under this subsection. | Within 10 days after receipt by the
Comptroller of the | disbursement certification to the counties and the Tax | Compliance and Administration Fund provided for in
this | Section to be given to the Comptroller by the Department, the | Comptroller
shall cause the orders to be drawn for the | respective amounts in accordance
with directions contained in | the certification.
| In addition to the disbursement required by the preceding | paragraph, an
allocation shall be made in March of each year to | each county that received
more than $500,000 in disbursements | under the preceding paragraph in the
preceding calendar year. | The allocation shall be in an amount equal to the
average | monthly distribution made to each such county under the | preceding
paragraph during the preceding calendar year | (excluding the 2 months of
highest receipts). The distribution | made in March of each year subsequent to
the year in which an | allocation was made pursuant to this paragraph and the
| preceding paragraph shall be reduced by the amount allocated | and disbursed
under this paragraph in the preceding calendar | year. The Department shall
prepare and certify to the | Comptroller for disbursement the allocations made in
| accordance with this paragraph.
| (d) For the purpose 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 paragraph 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.
| (e) Nothing in this Section shall be construed to | authorize a county to
impose a
tax 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.
| (e-5) If a county imposes a tax under this Section, the | county board may,
by ordinance, discontinue or lower the rate | of the tax. If the county board
lowers the tax rate or | discontinues the tax, a referendum must be
held in accordance | with subsection (a) of this Section in order to increase the
| rate of the tax or to reimpose the discontinued tax.
| (f) Beginning April 1, 1998 and through December 31, 2013, | the results of any election authorizing a
proposition to | impose a tax
under this Section or effecting a change in the | rate of tax, or any ordinance
lowering the rate or | discontinuing the tax,
shall be certified
by the
county clerk | and 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 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 as of the first
day of | January next following the filing.
| Beginning January 1, 2014, the results of any election | authorizing a proposition to impose a tax under this Section | or effecting an increase in the rate of tax, along with the | ordinance adopted to impose the tax or increase the rate of the | tax, or any ordinance adopted to lower the rate or discontinue | the tax, shall be certified by the county clerk and 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 as of the first day of July next | following the adoption and filing; or (ii) on or before the | first day of October, whereupon the Department shall proceed | to administer and enforce the tax as of the first day of | January next following the adoption and filing. | (g) When certifying the amount of a monthly disbursement | to a county under
this
Section, the Department shall increase | or decrease the amounts by an amount
necessary to offset any | miscalculation of previous disbursements. The offset
amount | shall be the amount erroneously disbursed within the previous | 6 months
from the time a miscalculation is discovered.
| (g-5) Every county authorized to levy a tax
under this | Section shall, before it levies such
tax, establish a 7-member | mental health board, which shall have the same powers and |
| duties and be constituted in the same manner as a community | mental health board established under the Community Mental | Health Act. Proceeds of the tax under this Section that are | earmarked for mental health or substance abuse purposes shall | be deposited into a special county occupation tax fund for | mental health and substance abuse. The 7-member mental health | board established under this subsection shall administer the | special county occupation tax fund for mental health and | substance abuse in the same manner as the community mental | health board administers the community mental health fund | under the Community Mental Health Act. | (h) This Section may be cited as the "Special County | Occupation Tax
For Public Safety, Public Facilities, Mental | Health, Substance Abuse, or Transportation Law".
| (i) For purposes of this Section, "public safety" | includes, but is not
limited to, crime prevention, detention, | fire fighting, police, medical,
ambulance, or other emergency
| services. The county may share tax proceeds received under | this Section for public safety purposes, including proceeds | received before August 4, 2009 (the effective date of Public | Act 96-124), with any fire protection district located in the | county. For the purposes of this Section, "transportation" | includes, but
is not limited to, the construction,
| maintenance, operation, and improvement of public highways, | any other
purpose for which a county may expend funds under the | Illinois Highway Code,
and passenger rail transportation. For |
| the purposes of this Section, "public facilities purposes" | includes, but is not limited to, 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 public facilities, for | use by the county for the furnishing of governmental services | to its citizens, including, but not limited to, museums and | nursing homes. | (j) The Department may promulgate rules to implement | Public Act 95-1002 only to the extent necessary to apply the | existing rules for the Special County Retailers' Occupation | Tax for Public Safety to this new purpose for public | facilities.
| (Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18; | 100-1167, eff. 1-4-19; 100-1171, eff. 1-4-19; 101-10, eff. | 6-5-19; 101-81, eff. 7-12-19; 101-275, eff. 8-9-19; 101-604, | eff. 12-13-19.)
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Effective Date: 1/1/2022
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