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Public Act 91-0051
SB144 Enrolled LRB9101598PTpk
AN ACT in relation to taxation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. Short title. This Act may be cited as the
Governmental Tax Reform Validation Act.
Section 10. Re-enactment; findings; purpose; validation.
(a) The General Assembly finds and declares that:
(1) The amendatory provisions of this Act were
first enacted by Public Act 85-1135 and all related to
taxation.
(A) Article I of Public Act 85-1135, effective
July 28, 1988, contained provisions stating
legislative intent.
(B) Article II of Public Act 85-1135,
effective January 1, 1990, contained provisions
amending or creating Sections 8-11-1, 8-11-1.1,
8-11-1.2, 8-11-1.3, 8-11-1.4, 8-11-5, 8-11-6,
8-11-6a, 8-11-16, and 11-74.4-8a of the Illinois
Municipal Code; Sections 24a-1, 24a-2, 24a-3, 24a-4,
and 25.05 of "An Act to revise the law in relation
to counties"; Section 4 of the Water Commission Act
of 1985; Section 5.01 of the Local Mass Transit
District Act; Sections 4.01, 4.03, 4.04, and 4.09 of
the Regional Transportation Authority Act; Sections
3, 9, and 10b of the Use Tax Act; Sections 2, 3, 3d,
7a, 9, 10, 10b, and 15 of the Service Use Tax Act;
Sections 2, 3, 9, 13, 15, and 20.1 of the Service
Occupation Tax Act; Sections 2, 3, 5k, and 6d of the
Retailers' Occupation Tax Act; and Sections 5.240,
5.241, 6z-16, and 6z-17 of the State Finance Act.
Article II of Public Act 85-1135, effective January
1, 1990, also contained provisions repealing
Sections 25.05a, 25.05-2, 25.05-2a, 25.05-3,
25.05-3a, 25.05-10, 25.05-10a, and 25.05-10.1 of "An
Act to revise the law in relation to counties" and
Sections 10 and 14 of the Service Occupation Tax
Act.
(C) Article III of Public Act 85-1135,
effective September 1, 1988, contained provisions
further amending Sections 3 and 9 of the Use Tax
Act; Sections 2, 3, and 9 of the Service Use Tax
Act; Sections 2, 3, and 9 of the Service Occupation
Tax Act; and Sections 2 and 3 of the Retailers'
Occupation Tax Act; and amending Section 2 of the
State Revenue Sharing Act.
(D) Article IV of Public Act 85-1135,
effective July 28, 1988, contained provisions
amending Section 6z-9 of the State Finance Act and
creating Section .01 of the State Revenue Sharing
Act.
(E) Article V of Public Act 85-1135, effective
July 28, 1988, contained provisions precluding any
effect on a pre-existing right, remedy, or liability
and authorizing enactment of home rule municipality
ordinances.
(2) Public Act 85-1135 also contained provisions
relating to State bonds and creating the Water Pollution
Control Revolving Fund loan program.
(3) On August 26, 1998, the Cook County Circuit
Court entered an order in the case of Oak Park Arms
Associates v. Whitley (No. 92 L 51045), in which it found
that Public Act 85-1135 violates the single subject
clause of the Illinois Constitution (Article IV, Section
8(d)). As of the time this Act was prepared, the order
declaring P.A. 85-1135 invalid has been vacated but the
case is subject to appeal.
(4) The tax provisions of Public Act 85-1135 affect
many areas of vital concern to the people of this State.
The disruption of the tax reform contained in those
provisions could constitute a grave threat to the
continued health, safety, and welfare of the people of
this State.
(b) It is the purpose of this Act to prevent or minimize
any problems relating to taxation that may result from
challenges to the constitutional validity of Public Act
85-1135, by (1) re-enacting provisions from Public Act
85-1135 and (2) validating all actions taken in reliance on
those provisions from Public Act 85-1135.
(c) Because Public Act 86-962, effective January 1,
1990, renumbered Sections 24a-1, 24a-2, 24a-3, 24a-4, and
25.05 of the Counties Code, this Act contains those
provisions as renumbered under Sections 5-1006, 5-1007,
5-1008, 5-1009, and 5-1024 of the Counties Code. Because
Public Act 86-1475, effective January 10, 1991, resectioned
Section 3 of the Use Tax Act, Section 3 of the Service Use
Tax Act, Section 3 of the Service Occupation Tax Act, and
Section 2 of the Retailers' Occupation Tax Act, this Act
contains those provisions as resectioned under Sections 3,
3-5, 3-10, 3-15, 3-20, 3-25, 3-30, 3-35, 3-40, 3-45, 3-50,
3-55, 3-60, 3-65, 3-70, 3-75, and 3-80 of the Use Tax Act;
Sections 3, 3-5, 3-10, 3-15, 3-20, 3-25, 3-30, 3-35, 3-40,
3-45, 3-50, 3-55, 3-60, and 3-65 of the Service Use Tax Act;
Sections 3, 3-5, 3-10, 3-15, 3-20, 3-25, 3-30, 3-35, 3-40,
3-45, and 3-50 of the Service Occupation Tax Act; and
Sections 2, 2-5, 2-10, 2-15, 2-20, 2-25, 2-30, 2-35, 2-40,
2-45, 2-50, 2-55, 2-60, 2-65 of the Retailers' Occupation Tax
Act. Because Public Act 85-1440, effective February 1, 1989,
renumbered Section 6z-16 of the State Finance Act and Section
.01 of the State Revenue Sharing Act, this Act contains those
provisions as renumbered under Section 6z-18 of the State
Finance Act and Section 0.1 of the State Revenue Sharing Act.
Sections 10b of the Use Tax Act, 10b of the Service Use Tax
Act, 20.1 of the Service Occupation Tax Act, and 6d of the
Retailers' Occupation Tax Act have been omitted from this Act
because they were repealed by Public Act 87-1258, effective
January 7, 1993.
(d) This Act re-enacts Section 1 of Article I of Public
Act 85-1135; Sections 8-11-1, 8-11-1.1, 8-11-1.2, 8-11-1.3,
8-11-1.4, 8-11-5, 8-11-6, 8-11-6a, 8-11-16, and 11-74.4-8a of
the Illinois Municipal Code; Sections 5-1006, 5-1007, 5-1008,
5-1009, and 5-1024 of the Counties Code; Section 4 of the
Water Commission Act of 1985; Section 5.01 of the Local Mass
Transit District Act; Sections 4.01, 4.03, 4.04, and 4.09 of
the Regional Transportation Authority Act; Sections 3, 3-5,
3-10, 3-15, 3-20, 3-25, 3-30, 3-35, 3-40, 3-45, 3-50, 3-55,
3-60, 3-65, 3-70, 3-75, 3-80, 9, and 10b of the Use Tax Act;
Sections 2, 3, 3-5, 3-10, 3-15, 3-20, 3-25, 3-30, 3-35, 3-40,
3-45, 3-50, 3-55, 3-60, 3-65, 3d, 7a, 9, 10, 10b, and 15 of
the Service Use Tax Act; Sections 2, 3, 3-5, 3-10, 3-15,
3-20, 3-25, 3-30, 3-35, 3-40, 3-45, 3-50, 9, 13, 15, and 20.1
of the Service Occupation Tax Act; Sections 2, 2-5, 2-10,
2-15, 2-20, 2-25, 2-30, 2-35, 2-40, 2-45, 2-50, 2-55, 2-60,
2-65, 3, 5k, and 6d of the Retailers' Occupation Tax Act;
Sections 5.240, 5.241, 6z-9, 6z-17, and 6z-18 of the State
Finance Act; Sections 0.1 and 2 of the State Revenue Sharing
Act; and Sections 1 and 2 of Article V of Public Act 85-1135
as they have been amended. It also re-repeals Sections
25.05a, 25.05-2, 25.05-2a, 25.05-3, 25.05-3a, 25.05-10,
25.05-10a, and 25.05-10.1 of "An Act to revise the law in
relation to counties" and Sections 10 and 14 of the Service
Occupation Tax Act. This re-enactment and re-repeal is
intended to remove any questions as to the validity or
content of those Sections; it is not intended to supersede
any other Public Act that amends the text of a Section as
set forth in this Act. The re-enacted material in this Act
is shown as existing text (i.e., without underscoring)
because, as of the time this Act was prepared, the order
declaring P.A. 85-1135 invalid has been vacated.
(e) In Sections 100 and 900 of this Act, references to
"this amendatory Act of 1988" mean Public Act 85-1135, as
re-enacted by this Act.
(f) The re-enactment or re-repeal of Sections of Public
Act 85-1135 by this Act is not intended, and shall not be
construed, to imply that Public Act 85-1135 is invalid or to
limit or impair any legal argument (1) upholding the validity
of Public Act 85-1135 or (2) concerning whether the
provisions of Public Act 85-1135 were substantially
re-enacted by other Public Acts.
(g) All otherwise lawful actions taken in reasonable
reliance on or pursuant to the Sections re-enacted by this
Act, as set forth in Public Act 85-1135 or subsequently
amended, by any officer, employee, agency, or unit of State
or local government or by any other person or entity, are
hereby validated.
With respect to actions taken in relation to matters
arising under the Sections re-enacted by this Act, as set
forth in Public Act 85-1135 or subsequently amended, a person
is rebuttably presumed to have acted in reasonable reliance
on and pursuant to the provisions of Public Act 85-1135, as
those provisions had been amended at the time the action was
taken.
(h) With respect to its administration of matters
arising under the Sections re-enacted by this Act, the
Department of Revenue shall continue to apply the provisions
of Public Act 85-1135, as those provisions had been amended
at the relevant time.
(i) This Act applies, without limitation, to proceedings
pending on or after the effective date of this Act.
Section 100. Section 1 of Article 1 of Public Act
85-1135 (which is incorrectly shown as Section 12 in the Laws
of Illinois) is re-enacted as follows:
(P.A. 85-1135, Art. I, Sec. 1)
Sec. 1. It is the intent of the 85th General Assembly
that:
(a) the abolition of the authority of municipalities and
counties to impose occupation and use taxes, and the
corresponding concurrent increase of the state rate of such
taxes with a corresponding distribution to such
municipalities and counties pursuant to this amendatory Act
of 1988, shall remain in full force and effect on a permanent
basis;
(b) there shall be no reduction or redistribution as to
proportional amount of such corresponding distribution
received by such municipalities and counties except as
expressly provided in this amendatory Act of 1988;
(c) there shall be no reduction of the rate or base of
such taxes except as expressly provided in this amendatory
Act of 1988;
(d) there shall be no limitation on the use of monies
received by such municipalities and counties except as
expressly provided in this amendatory Act of 1988;
(e) the distribution of occupation tax revenues to
municipalities and counties shall remain on the basis of
point of sale;
(f) tax revenues collected pursuant to the State use tax
Acts on interstate transactions involving transfer of
tangible personal property shall be distributed in accordance
with the formula established by this amendatory Act of 1988
for State use taxes; and
(g) repeal of the statutory authority of municipalities
and counties to impose local retailers' occupation taxes, use
taxes, and service occupation taxes shall not be so construed
as to impair the provisions of any development,
redevelopment, annexation, preannexation or other lawful
agreement which describes or refers to receipts from any of
such taxes, but, rather, any such description or reference to
such taxes shall be given effect as if reference were made in
such agreement to the replacement revenue for such abolished
taxes received from the Local Government Tax Fund, County and
Mass Transit Tax Fund or Local Government Distributive Fund,
as the case may be.
Section 105. The State Finance Act is amended by
re-enacting Sections 5.240, 5.241, 6z-9, 6z-17, and 6z-18 as
follows:
(30 ILCS 105/5.240) (from Ch. 127, par. 141.240)
Sec. 5.240. The Local Government Tax Fund.
(Source: P.A. 85-1135.)
(30 ILCS 105/5.241) (from Ch. 127, par. 141.241)
Sec. 5.241. The County and Mass Transit District Fund.
(Source: P.A. 85-1135.)
(30 ILCS 105/6z-9) (from Ch. 127, par. 142z-9)
Sec. 6z-9. (a) The Build Illinois Fund is created in the
State Treasury. All tax revenues and other moneys from
whatever source which by law are required to be deposited in
the Build Illinois Fund shall be paid into the Build Illinois
Fund upon their collection, payment or other receipt as
provided by law, including the pledge set forth in Section 12
of the Build Illinois Bond Act. All tax revenues and other
moneys paid into the Build Illinois Fund shall be promptly
invested by the State Treasurer in accordance with law, and
all interest or other earnings accruing or received thereon
shall be credited to and paid into the Build Illinois Fund.
No tax revenues or other moneys, interest or earnings paid
into the Build Illinois Fund shall be transferred or
allocated by the Comptroller or Treasurer to any other fund,
nor shall the Governor authorize any such transfer or
allocation, nor shall any tax revenues or other moneys,
interest or earnings paid into the Build Illinois Fund be
used, temporarily or otherwise, for interfund borrowing, or
be otherwise used or appropriated, except as expressly
authorized and provided in Section 8.25 of this Act for the
sole purposes and subject to the priorities, limitations and
conditions prescribed therein.
(b) The tax revenues and other moneys shall be paid into
the Build Illinois Fund pursuant to Section 6Z-17 of this
Act, Section 28 of the "Illinois Horse Racing Act of 1975",
as amended, Section 9 of the "Use Tax Act", as amended,
Section 9 of the "Service Use Tax Act", as amended, Section 9
of the "Service Occupation Tax Act", as amended, Section 3 of
the "Retailers' Occupation Tax Act", as amended, Section 4.05
of the "Chicago World's Fair - 1992 Authority Act", as
amended, and Sections 3 and 6 of "The Hotel Operators'
Occupation Tax Act", as amended.
(Source: P.A. 85-1135.)
(30 ILCS 105/6z-17) (from Ch. 127, par. 142z-17)
Sec. 6z-17. Of the money paid into the State and Local
Sales Tax Reform Fund: (i) subject to appropriation to the
Department of Revenue, Municipalities having 1,000,000 or
more inhabitants shall receive 20% and may expend such amount
to fund and establish a program for developing and
coordinating public and private resources targeted to meet
the affordable housing needs of low-income and very
low-income households within such municipality, (ii) 10%
shall be transferred into the Regional Transportation
Authority Occupation and Use Tax Replacement Fund, a special
fund in the State treasury which is hereby created, (iii)
subject to appropriation to the Department of Transportation,
The Metro East Mass Transit District shall receive .6%, (iv)
the following amounts, plus any cumulative deficiency in such
transfers for prior months, shall be transferred monthly into
the Build Illinois Fund and credited to the Build Illinois
Bond Account therein:
Fiscal Year Amount
1990 $2,700,000
1991 1,850,000
1992 2,750,000
1993 2,950,000
From Fiscal Year 1994 through Fiscal Year 2025 the
transfer shall total $3,150,000 monthly, plus any cumulative
deficiency in such transfers for prior months, and (v) the
remainder of the money paid into the State and Local Sales
Tax Reform Fund shall be transferred into the Local
Government Distributive Fund and, except for municipalities
with 1,000,000 or more inhabitants which shall receive no
portion of such remainder, shall be distributed, subject to
appropriation, in the manner provided by Section 2 of "An Act
in relation to State revenue sharing with local government
entities", approved July 31, 1969, as now or hereafter
amended. Municipalities with more than 50,000 inhabitants
according to the 1980 U.S. Census and located within the
Metro East Mass Transit District receiving funds pursuant to
provision (v) of this paragraph may expend such amounts to
fund and establish a program for developing and coordinating
public and private resources targeted to meet the affordable
housing needs of low-income and very low-income households
within such municipality.
(Source: P.A. 86-17; 86-44; 86-928; 86-953; 86-1028.)
(30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
Sec. 6z-18. A portion of the money paid into the Local
Government Tax Fund from sales of food for human consumption
which is to be consumed off the premises where it is sold
(other than alcoholic beverages, soft drinks and food which
has been prepared for immediate consumption) and prescription
and nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes and needles used
by diabetics, which occurred in municipalities, shall be
distributed to each municipality based upon the sales which
occurred in that municipality. The remainder shall be
distributed to each county based upon the sales which
occurred in the unincorporated area of that county.
A portion of the money paid into the Local Government Tax
Fund from the 6.25% general use tax rate on the selling price
of tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by any agency of this State's government shall be
distributed to municipalities as provided in this paragraph.
Each municipality shall receive the amount attributable to
sales for which Illinois addresses for titling or
registration purposes are given as being in such
municipality. The remainder of the money paid into the Local
Government Tax Fund from such sales shall be distributed to
counties. Each county shall receive the amount attributable
to sales for which Illinois addresses for titling or
registration purposes are given as being located in the
unincorporated area of such county.
A portion of the money paid into the Local Government Tax
Fund from the 6.25% general rate on sales subject to taxation
under the Retailers' Occupation Tax Act and the Service
Occupation Tax Act, which occurred in municipalities, shall
be distributed to each municipality, based upon the sales
which occurred in that municipality. The remainder shall be
distributed to each county, based upon the sales which
occurred in the unincorporated area of such county.
For the purpose of determining allocation to the local
government unit, a retail sale by a producer of coal or other
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 other 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.
Whenever the Department determines that a refund of money
paid into the Local Government Tax Fund should be made 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 such notification from the Department.
Such refund shall be paid by the State Treasurer out of the
Local Government Tax 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 named municipalities
and counties, the municipalities and counties to be those
entitled to distribution of taxes or penalties paid to the
Department during the second preceding calendar month. The
amount to be paid to each municipality or county shall be the
amount (not including credit memoranda) collected during the
second preceding calendar month by the Department and paid
into the Local Government Tax Fund, plus an amount the
Department determines is necessary to offset any amounts
which were erroneously paid to a different taxing body, and
not including an amount equal to the amount of refunds made
during the second preceding calendar month by the Department,
and not including any amount which the Department determines
is necessary to offset any amounts which are payable to a
different taxing body but were erroneously paid to the
municipality or county. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and counties, 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 the directions
contained in such certification.
When certifying the amount of monthly disbursement to a
municipality or county under this Section, the Department
shall increase or decrease that amount by an amount necessary
to offset any misallocation of previous disbursements. The
offset amount shall be the amount erroneously disbursed
within the 6 months preceding the time a misallocation is
discovered.
The provisions directing the distributions from the
special fund in the State Treasury provided for in this
Section shall constitute an irrevocable and continuing
appropriation of all amounts as provided herein. The State
Treasurer and State Comptroller are hereby authorized to make
distributions as provided in this Section.
In construing any development, redevelopment, annexation,
preannexation or other lawful agreement in effect prior to
September 1, 1990, which describes or refers to receipts from
a county or municipal retailers' occupation tax, use tax or
service occupation tax which now cannot be imposed, such
description or reference shall be deemed to include the
replacement revenue for such abolished taxes, distributed
from the Local Government Tax Fund.
(Source: P.A. 90-491, eff. 1-1-98.)
Section 110. The State Revenue Sharing Act is amended by
re-enacting Sections 0.1 and 2 as follows:
(30 ILCS 115/0.1) (from Ch. 85, par. 610)
Sec. 0.1. This Act shall be known and may be cited as
the State Revenue Sharing Act.
(Source: P.A. 85-1440.)
(30 ILCS 115/2) (from Ch. 85, par. 612)
Sec. 2. Allocation and Disbursement. As soon as may be
after the first day of each month, the Department of Revenue
shall allocate among the several municipalities and counties
of this State the amount available in the Local Government
Distributive Fund and in the Income Tax Surcharge Local
Government Distributive Fund, determined as provided in
Sections 1 and 1a above. Except as provided in Sections 13
and 13.1 of this Act, the Department shall then certify such
allocations to the State Comptroller, who shall pay over to
the several municipalities and counties the respective
amounts allocated to them. The amount of such Funds
allocable to each such municipality and county shall be in
proportion to the number of individual residents of such
municipality or county to the total population of the State,
determined in each case on the basis of the latest census of
the State, municipality or county conducted by the Federal
government and certified by the Secretary of State and for
annexations to municipalities, the latest Federal, State or
municipal census of the annexed area which has been certified
by the Department of Revenue. For the purpose of this
Section, the number of individual residents of a county shall
be reduced by the number of individuals residing therein in
municipalities, but the number of individual residents of the
State, county and municipality shall reflect the latest
census of any of them. The amounts transferred into the Local
Government Distributive Fund pursuant to Section 9 of the Use
Tax Act, Section 9 of the Service Use Tax Act, Section 9 of
the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act, each as now or hereafter
amended, pursuant to the amendments of such Sections by
Public Act 85-1135, shall be distributed as provided in said
Sections.
(Source: P.A. 86-18.)
Section 115. The Use Tax Act is amended by re-enacting
Sections 3, 3-5, 3-10, 3-15, 3-20, 3-25, 3-30, 3-35, 3-40,
3-45, 3-50, 3-55, 3-60, 3-65, 3-70, 3-75, 3-80, and 9 as
follows:
(35 ILCS 105/3) (from Ch. 120, par. 439.3)
Sec. 3. Tax imposed. A tax is imposed upon the privilege
of using in this State tangible personal property purchased
at retail from a retailer, including computer software, and
including photographs, negatives, and positives that are the
product of photoprocessing, but not including products of
photoprocessing produced for use in motion pictures for
commercial exhibition.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-953; 86-1394; 86-1475; 87-876.)
(35 ILCS 105/3-5) (from Ch. 120, par. 439.3-5)
Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
(3) Personal property purchased by a not-for-profit
music or dramatic arts organization that establishes, by
proof required by the Department by rule, that it has
received an exemption under Section 501(c)(3) of the Internal
Revenue Code and that is organized and operated for the
presentation of live public performances of musical or
theatrical works on a regular basis.
(4) Personal property purchased by a governmental body,
by a corporation, society, association, foundation, or
institution organized and operated exclusively for
charitable, religious, or educational purposes, or by a
not-for-profit corporation, society, association, foundation,
institution, or organization that has no compensated officers
or employees and that is organized and operated primarily for
the recreation of persons 55 years of age or older. A limited
liability company may qualify for the exemption under this
paragraph only if the limited liability company is organized
and operated exclusively for educational purposes. On and
after July 1, 1987, however, no entity otherwise eligible for
this exemption shall make tax-free purchases unless it has an
active exemption identification number issued by the
Department.
(5) A passenger car that is a replacement vehicle to the
extent that the purchase price of the car is subject to the
Replacement Vehicle Tax.
(6) Graphic arts machinery and equipment, including
repair and replacement parts, both new and used, and
including that manufactured on special order, certified by
the purchaser to be used primarily for graphic arts
production, and including machinery and equipment purchased
for lease.
(7) Farm chemicals.
(8) Legal tender, currency, medallions, or gold or
silver coinage issued by the State of Illinois, the
government of the United States of America, or the government
of any foreign country, and bullion.
(9) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(10) A motor vehicle of the first division, a motor
vehicle of the second division that is a self-contained motor
vehicle designed or permanently converted to provide living
quarters for recreational, camping, or travel use, with
direct walk through to the living quarters from the driver's
seat, or a motor vehicle of the second division that is of
the van configuration designed for the transportation of not
less than 7 nor more than 16 passengers, as defined in
Section 1-146 of the Illinois Vehicle Code, that is used for
automobile renting, as defined in the Automobile Renting
Occupation and Use Tax Act.
(11) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for production agriculture
or State or federal agricultural programs, including
individual replacement parts for the machinery and equipment,
including machinery and equipment purchased for lease, and
including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required
to be registered under Section 3-809 of the Illinois Vehicle
Code, but excluding other motor vehicles required to be
registered under the Illinois Vehicle Code. Horticultural
polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and
equipment under this item (11). Agricultural chemical tender
tanks and dry boxes shall include units sold separately from
a motor vehicle required to be licensed and units sold
mounted on a motor vehicle required to be licensed if the
selling price of the tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders. Precision farming equipment includes,
but is not limited to, soil testing sensors, computers,
monitors, software, global positioning and mapping systems,
and other such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in
the computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not
limited to, the collection, monitoring, and correlation of
animal and crop data for the purpose of formulating animal
diets and agricultural chemicals. This item (11) is exempt
from the provisions of Section 3-90.
(12) Fuel and petroleum products sold to or used by an
air common carrier, certified by the carrier to be used for
consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight destined for
or returning from a location or locations outside the United
States without regard to previous or subsequent domestic
stopovers.
(13) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption
of food and beverages purchased at retail from a retailer, to
the extent that the proceeds of the service charge are in
fact turned over as tips or as a substitute for tips to the
employees who participate directly in preparing, serving,
hosting or cleaning up the food or beverage function with
respect to which the service charge is imposed.
(14) Oil field exploration, drilling, and production
equipment, including (i) rigs and parts of rigs, rotary rigs,
cable tool rigs, and workover rigs, (ii) pipe and tubular
goods, including casing and drill strings, (iii) pumps and
pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(15) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including
that manufactured on special order, certified by the
purchaser to be used primarily for photoprocessing, and
including photoprocessing machinery and equipment purchased
for lease.
(16) Coal exploration, mining, offhighway hauling,
processing, maintenance, and reclamation equipment, including
replacement parts and equipment, and including equipment
purchased for lease, but excluding motor vehicles required to
be registered under the Illinois Vehicle Code.
(17) Distillation machinery and equipment, sold as a
unit or kit, assembled or installed by the retailer,
certified by the user to be used only for the production of
ethyl alcohol that will be used for consumption as motor fuel
or as a component of motor fuel for the personal use of the
user, and not subject to sale or resale.
(18) Manufacturing and assembling machinery and
equipment used primarily in the process of manufacturing or
assembling tangible personal property for wholesale or retail
sale or lease, whether that sale or lease is made directly by
the manufacturer or by some other person, whether the
materials used in the process are owned by the manufacturer
or some other person, or whether that sale or lease is made
apart from or as an incident to the seller's engaging in the
service occupation of producing machines, tools, dies, jigs,
patterns, gauges, or other similar items of no commercial
value on special order for a particular purchaser.
(19) Personal property delivered to a purchaser or
purchaser's donee inside Illinois when the purchase order for
that personal property was received by a florist located
outside Illinois who has a florist located inside Illinois
deliver the personal property.
(20) Semen used for artificial insemination of livestock
for direct agricultural production.
(21) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes.
(22) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is
leased in a manner that does not qualify for this exemption
or is used in any other non-exempt manner, the lessor shall
be liable for the tax imposed under this Act or the Service
Use Tax Act, as the case may be, based on the fair market
value of the property at the time the non-qualifying use
occurs. No lessor shall collect or attempt to collect an
amount (however designated) that purports to reimburse that
lessor for the tax imposed by this Act or the Service Use Tax
Act, as the case may be, if the tax has not been paid by the
lessor. If a lessor improperly collects any such amount from
the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that
amount is not refunded to the lessee for any reason, the
lessor is liable to pay that amount to the Department.
(23) Personal property purchased by a lessor who leases
the property, under a lease of one year or longer executed
or in effect at the time the lessor would otherwise be
subject to the tax imposed by this Act, to a governmental
body that has been issued an active sales tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the property is leased
in a manner that does not qualify for this exemption or used
in any other non-exempt manner, the lessor shall be liable
for the tax imposed under this Act or the Service Use Tax
Act, as the case may be, based on the fair market value of
the property at the time the non-qualifying use occurs. No
lessor shall collect or attempt to collect an amount (however
designated) that purports to reimburse that lessor for the
tax imposed by this Act or the Service Use Tax Act, as the
case may be, if the tax has not been paid by the lessor. If
a lessor improperly collects any such amount from the lessee,
the lessee shall have a legal right to claim a refund of that
amount from the lessor. If, however, that amount is not
refunded to the lessee for any reason, the lessor is liable
to pay that amount to the Department.
(24) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally
declared disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to
a corporation, society, association, foundation, or
institution that has been issued a sales tax exemption
identification number by the Department that assists victims
of the disaster who reside within the declared disaster area.
(25) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including but not limited to municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities
located in the declared disaster area within 6 months after
the disaster.
(Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
eff. 12-12-97; 90-605, eff. 6-30-98.)
(35 ILCS 105/3-10) (from Ch. 120, par. 439.3-10)
Sec. 3-10. Rate of tax. Unless otherwise provided in
this Section, the tax imposed by this Act is at the rate of
6.25% of either the selling price or the fair market value,
if any, of the tangible personal property. In all cases
where property functionally used or consumed is the same as
the property that was purchased at retail, then the tax is
imposed on the selling price of the property. In all cases
where property functionally used or consumed is a by-product
or waste product that has been refined, manufactured, or
produced from property purchased at retail, then the tax is
imposed on the lower of the fair market value, if any, of the
specific property so used in this State or on the selling
price of the property purchased at retail. For purposes of
this Section "fair market value" means the price at which
property would change hands between a willing buyer and a
willing seller, neither being under any compulsion to buy or
sell and both having reasonable knowledge of the relevant
facts. The fair market value shall be established by Illinois
sales by the taxpayer of the same property as that
functionally used or consumed, or if there are no such sales
by the taxpayer, then comparable sales or purchases of
property of like kind and character in Illinois.
With respect to gasohol, the tax imposed by this Act
applies to 70% of the proceeds of sales made on or after
January 1, 1990, and before July 1, 2003, and to 100% of the
proceeds of sales made thereafter.
With respect to food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances,
modifications to a motor vehicle for the purpose of rendering
it usable by a disabled person, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, the tax is imposed at the rate of 1%. For the purposes
of this Section, the term "soft drinks" means any complete,
finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including but not limited to soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or
sealed bottle, can, carton, or container, regardless of size.
"Soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in
the Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act, "food
for human consumption that is to be consumed off the premises
where it is sold" includes all food sold through a vending
machine, except soft drinks and food products that are
dispensed hot from a vending machine, regardless of the
location of the vending machine.
If the property that is purchased at retail from a
retailer is acquired outside Illinois and used outside
Illinois before being brought to Illinois for use here and is
taxable under this Act, the "selling price" on which the tax
is computed shall be reduced by an amount that represents a
reasonable allowance for depreciation for the period of prior
out-of-state use.
(Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
6-30-98; 90-606, eff. 6-30-98.)
(35 ILCS 105/3-15) (from Ch. 120, par. 439.3-15)
Sec. 3-15. Photoprocessing. For purposes of the tax
imposed on photographs, negatives, and positives by this Act,
"photoprocessing" includes, but is not limited to, developing
films, positives, negatives, and transparencies, and tinting,
coloring, making, and enlarging prints. Photoprocessing does
not include color separation, typesetting, and platemaking by
photographic means in the graphic arts industry and does not
include any procedure, process, or activity connected with
the creation of the images on the film from which the
negatives, positives, or photographs are derived. The charge
for in-house photoprocessing may not be less than the
photoprocessor's cost price of materials. In transactions in
which products of photoprocessing are sold in conjunction
with other services, if a charge for the photoprocessing
component is not separately stated, tax is imposed on 50% of
the entire selling price unless the sale is made by a
professional photographer, in which case tax is imposed on
10% of the entire selling price.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-953; 86-1394; 86-1475.)
(35 ILCS 105/3-20) (from Ch. 120, par. 439.3-20)
Sec. 3-20. Bullion. For purposes of the exemption
pertaining to bullion, "bullion" means gold, silver, or
platinum in a bulk state with a purity of not less than 980
parts per 1,000.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-953; 86-1394; 86-1475.)
(35 ILCS 105/3-25) (from Ch. 120, par. 439.3-25)
Sec. 3-25. Computer software. For the purposes of this
Act, "computer software" means a set of statements, data, or
instructions to be used directly or indirectly in a computer
in order to bring about a certain result in any form in which
those statements, data, or instructions may be embodied,
transmitted, or fixed, by any method now known or hereafter
developed, regardless of whether the statements, data, or
instructions are capable of being perceived by or
communicated to humans, and includes prewritten or canned
software that is held for repeated sale or lease, and all
associated documentation and materials, if any, whether
contained on magnetic tapes, discs, cards, or other devices
or media, but does not include software that is adapted to
specific individualized requirements of a purchaser,
custom-made and modified software designed for a particular
or limited use by a purchaser, or software used to operate
exempt machinery and equipment used in the process of
manufacturing or assembling tangible personal property for
wholesale or retail sale or lease.
For the purposes of this Act, computer software shall be
considered to be tangible personal property.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-953; 86-1394; 86-1475.)
(35 ILCS 105/3-30) (from Ch. 120, par. 439.3-30)
Sec. 3-30. Graphic arts production. For the purposes of
this Act, "graphic arts production" means printing by one or
more of the common processes or graphic arts production
services as those processes and services are defined in Major
Group 27 of the U. S. Standard Industrial Classification
Manual.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-953; 86-1394; 86-1475.)
(35 ILCS 105/3-35) (from Ch. 120, par. 439.3-35)
Sec. 3-35. Production agriculture. For purposes of this
Act, "production agriculture" means the raising of or the
propagation of livestock; crops for sale for human
consumption; crops for livestock consumption; and production
seed stock grown for the propagation of feed grains and the
husbandry of animals or for the purpose of providing a food
product, including the husbandry of blood stock as a main
source of providing a food product. "Production agriculture"
also means animal husbandry, floriculture, aquaculture,
horticulture, and viticulture.
(Source: P.A. 89-220, eff. 1-1-96.)
(35 ILCS 105/3-40) (from Ch. 120, par. 439.3-40)
Sec. 3-40. Gasohol. As used in this Act, "gasohol"
means motor fuel that is no more than 90% gasoline and at
least 10% denatured ethanol that contains no more than 1.25%
water by weight. Any person who knowingly sells or represents
as gasohol any fuel that does not qualify as gasohol under
this Act is guilty of a business offense and shall be fined
not more than $100 for each day that the sale or
representation takes place after notification from the
Department of Agriculture that the fuel in question does not
qualify as gasohol.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-953; 86-1394; 86-1475.)
(35 ILCS 105/3-45) (from Ch. 120, par. 439.3-45)
Sec. 3-45. Collection. The tax imposed by this Act
shall be collected from the purchaser by a retailer
maintaining a place of business in this State or a retailer
authorized by the Department under Section 6 of this Act, and
shall be remitted to the Department as provided in Section 9
of this Act.
The tax imposed by this Act that is not paid to a
retailer under this Section shall be paid to the Department
directly by any person using the property within this State
as provided in Section 10 of this Act.
Retailers shall collect the tax from users by adding the
tax to the selling price of tangible personal property, when
sold for use, in the manner prescribed by the Department.
The Department may adopt and promulgate reasonable rules and
regulations for the adding of the tax by retailers to selling
prices by prescribing bracket systems for the purpose of
enabling the retailers to add and collect, as far as
practicable, the amount of the tax.
If a seller collects use tax measured by receipts that
are not subject to use tax, or if a seller, in collecting use
tax measured by receipts that are subject to tax under this
Act, collects more from the purchaser than the required
amount of the use tax on the transaction, the purchaser shall
have a legal right to claim a refund of that amount from the
seller. If, however, that amount is not refunded to the
purchaser for any reason, the seller is liable to pay that
amount to the Department. This paragraph does not apply to
an amount collected by the seller as use tax on receipts that
are subject to tax under this Act as long as the collection
is made in compliance with the tax collection brackets
prescribed by the Department in its rules and regulations.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-953; 86-1394; 86-1475.)
(35 ILCS 105/3-50) (from Ch. 120, par. 439.3-50)
Sec. 3-50. Manufacturing and assembly exemption. The
manufacturing and assembling machinery and equipment
exemption includes machinery and equipment that replaces
machinery and equipment in an existing manufacturing facility
as well as machinery and equipment that are for use in an
expanded or new manufacturing facility. The machinery and
equipment exemption also includes machinery and equipment
used in the general maintenance or repair of exempt machinery
and equipment or for in-house manufacture of exempt machinery
and equipment. For the purposes of this exemption, terms have
the following meanings:
(1) "Manufacturing process" means the production of
an article of tangible personal property, whether the
article is a finished product or an article for use in
the process of manufacturing or assembling a different
article of tangible personal property, by a procedure
commonly regarded as manufacturing, processing,
fabricating, or refining that changes some existing
material into a material with a different form, use, or
name. In relation to a recognized integrated business
composed of a series of operations that collectively
constitute manufacturing, or individually constitute
manufacturing operations, the manufacturing process
commences with the first operation or stage of production
in the series and does not end until the completion of
the final product in the last operation or stage of
production in the series. For purposes of this
exemption, photoprocessing is a manufacturing process of
tangible personal property for wholesale or retail sale.
(2) "Assembling process" means the production of an
article of tangible personal property, whether the
article is a finished product or an article for use in
the process of manufacturing or assembling a different
article of tangible personal property, by the combination
of existing materials in a manner commonly regarded as
assembling that results in an article or material of a
different form, use, or name.
(3) "Machinery" means major mechanical machines or
major components of those machines contributing to a
manufacturing or assembling process.
(4) "Equipment" includes an independent device or
tool separate from machinery but essential to an
integrated manufacturing or assembly process; including
computers used primarily in operating exempt machinery
and equipment in a computer assisted design, computer
assisted manufacturing (CAD/CAM) system; any subunit or
assembly comprising a component of any machinery or
auxiliary, adjunct, or attachment parts of machinery,
such as tools, dies, jigs, fixtures, patterns, and molds;
and any parts that require periodic replacement in the
course of normal operation; but does not include hand
tools.
The manufacturing and assembling machinery and equipment
exemption includes the sale of materials to a purchaser who
produces exempted types of machinery, equipment, or tools and
who rents or leases that machinery, equipment, or tools to a
manufacturer of tangible personal property. This exemption
also includes the sale of materials to a purchaser who
manufactures those materials into an exempted type of
machinery, equipment, or tools that the purchaser uses
himself or herself in the manufacturing of tangible personal
property. This exemption includes the sale of exempted types
of machinery or equipment to a purchaser who is not the
manufacturer, but who rents or leases the use of the property
to a manufacturer. The purchaser of the machinery and
equipment who has an active resale registration number shall
furnish that number to the seller at the time of purchase. A
user of the machinery, equipment, or tools without an active
resale registration number shall prepare a certificate of
exemption for each transaction stating facts establishing the
exemption for that transaction, and that certificate shall be
available to the Department for inspection or audit. The
Department shall prescribe the form of the certificate.
Informal rulings, opinions, or letters issued by the
Department in response to an inquiry or request for an
opinion from any person regarding the coverage and
applicability of this exemption to specific devices shall be
published, maintained as a public record, and made available
for public inspection and copying. If the informal ruling,
opinion, or letter contains trade secrets or other
confidential information, where possible, the Department
shall delete that information before publication. Whenever
informal rulings, opinions, or letters contain a policy of
general applicability, the Department shall formulate and
adopt that policy as a rule in accordance with the Illinois
Administrative Procedure Act.
(Source: P.A. 88-505; 88-547.)
(35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55)
Sec. 3-55. Multistate exemption. To prevent actual or
likely multistate taxation, the tax imposed by this Act does
not apply to the use of tangible personal property in this
State under the following circumstances:
(a) The use, in this State, of tangible personal
property acquired outside this State by a nonresident
individual and brought into this State by the individual for
his or her own use while temporarily within this State or
while passing through this State.
(b) The use, in this State, of tangible personal
property by an interstate carrier for hire as rolling stock
moving in interstate commerce or by lessors under a lease of
one year or longer executed or in effect at the time of
purchase of tangible personal property by interstate carriers
for-hire for use as rolling stock moving in interstate
commerce as long as so used by the interstate carriers
for-hire, and equipment operated by a telecommunications
provider, licensed as a common carrier by the Federal
Communications Commission, which is permanently installed in
or affixed to aircraft moving in interstate commerce.
(c) The use, in this State, by owners, lessors, or
shippers of tangible personal property that is utilized by
interstate carriers for hire for use as rolling stock moving
in interstate commerce as long as so used by the interstate
carriers for hire, and equipment operated by a
telecommunications provider, licensed as a common carrier by
the Federal Communications Commission, which is permanently
installed in or affixed to aircraft moving in interstate
commerce.
(d) The use, in this State, of tangible personal
property that is acquired outside this State and caused to be
brought into this State by a person who has already paid a
tax in another State in respect to the sale, purchase, or use
of that property, to the extent of the amount of the tax
properly due and paid in the other State.
(e) The temporary storage, in this State, of tangible
personal property that is acquired outside this State and
that, after being brought into this State and stored here
temporarily, is used solely outside this State or is
physically attached to or incorporated into other tangible
personal property that is used solely outside this State, or
is altered by converting, fabricating, manufacturing,
printing, processing, or shaping, and, as altered, is used
solely outside this State.
(f) The temporary storage in this State of building
materials and fixtures that are acquired either in this State
or outside this State by an Illinois registered combination
retailer and construction contractor, and that the purchaser
thereafter uses outside this State by incorporating that
property into real estate located outside this State.
(g) The use or purchase of tangible personal property by
a common carrier by rail or motor that receives the physical
possession of the property in Illinois, and that transports
the property, or shares with another common carrier in the
transportation of the property, out of Illinois on a standard
uniform bill of lading showing the seller of the property as
the shipper or consignor of the property to a destination
outside Illinois, for use outside Illinois.
(h) The use, in this State, of a motor vehicle that was
sold in this State to a nonresident, even though the motor
vehicle is delivered to the nonresident in this State, if the
motor vehicle is not to be titled in this State, and if a
driveaway decal permit is issued to the motor vehicle as
provided in Section 3-603 of the Illinois Vehicle Code or if
the nonresident purchaser has vehicle registration plates to
transfer to the motor vehicle upon returning to his or her
home state. The issuance of the driveaway decal permit or
having the out-of-state registration plates to be transferred
shall be prima facie evidence that the motor vehicle will not
be titled in this State.
(Source: P.A. 90-519, eff. 6-1-98; 90-552, eff. 12-12-97.)
(35 ILCS 105/3-60) (from Ch. 120, par. 439.3-60)
Sec. 3-60. Rolling stock exemption. The rolling stock
exemption applies to rolling stock used by an interstate
carrier for hire, even just between points in Illinois, if
the rolling stock transports, for hire, persons whose
journeys or property whose shipments originate or terminate
outside Illinois.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-953; 86-1394; 86-1475.)
(35 ILCS 105/3-65) (from Ch. 120, par. 439.3-65)
Sec. 3-65. R.O.T. nontaxability. If the seller of
tangible personal property for use would not be taxable under
the Retailers' Occupation Tax Act despite all elements of the
sale occurring in Illinois, then the tax imposed by this Act
does not apply to the use of the tangible personal property
in this State.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-953; 86-1394; 86-1475.)
(35 ILCS 105/3-70) (from Ch. 120, par. 439.3-70)
Sec. 3-70. Property acquired by nonresident. The tax
imposed by this Act does not apply to the use, in this State,
of tangible personal property that is acquired outside this
State by a nonresident individual who then brings the
property to this State for use here and who has used the
property outside this State for at least 3 months before
bringing the property to this State.
Where a business that is not operated in Illinois, but is
operated in another State, is moved to Illinois or opens an
office, plant, or other business facility in Illinois, that
business shall not be taxed on its use, in Illinois, of used
tangible personal property, other than items of tangible
personal property that must be titled or registered with the
State of Illinois or whose registration with the United
States Government must be filed with the State of Illinois,
that the business bought outside Illinois and used outside
Illinois in the operation of the business for at least 3
months before moving the used property to Illinois for use in
this State.
"Acquired outside this State", whenever used in this Act,
in addition to its usual and popular meaning, also means the
delivery, outside Illinois, of tangible personal property
that is purchased in this State and delivered from a point in
this State to a point of delivery outside this State.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-953; 86-1394; 86-1475; 87-876.)
(35 ILCS 105/3-75) (from Ch. 120, par. 439.3-75)
Sec. 3-75. Serviceman transfer. Tangible personal
property purchased by a serviceman, as defined in Section 2
of the Service Occupation Tax Act, is subject to the tax
imposed by this Act when purchased for transfer by the
serviceman incidental to completion of a maintenance
agreement.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-953; 86-1394; 86-1475.)
(35 ILCS 105/3-80) (from Ch. 120, par. 439.3-80)
Sec. 3-80. Liability because of amendatory Act.
Revisions in Section 3 (now Sections 3 through 3-80) by
Public Act 85-1135 do not affect tax liability that arose
before January 1, 1990.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-953; 86-1394; 86-1475.)
(35 ILCS 105/9) (from Ch. 120, par. 439.9)
Sec. 9. Except as to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered
with an agency of this State, each retailer required or
authorized to collect the tax imposed by this Act shall pay
to the Department the amount of such tax (except as otherwise
provided) at the time when he is required to file his return
for the period during which such tax was collected, less a
discount of 2.1% prior to January 1, 1990, and 1.75% on and
after January 1, 1990, or $5 per calendar year, whichever is
greater, which is allowed to reimburse the retailer for
expenses incurred in collecting the tax, keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. In the case of retailers
who report and pay the tax on a transaction by transaction
basis, as provided in this Section, such discount shall be
taken with each such tax remittance instead of when such
retailer files his periodic return. A retailer need not
remit that part of any tax collected by him to the extent
that he is required to remit and does remit the tax imposed
by the Retailers' Occupation Tax Act, with respect to the
sale of the same property.
Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof,
is extended beyond the close of the period for which the
return is filed, the retailer, in collecting the tax (except
as to motor vehicles, watercraft, aircraft, and trailers that
are required to be registered with an agency of this State),
may collect for each tax return period, only the tax
applicable to that part of the selling price actually
received during such tax return period.
Except as provided in this Section, on or before the
twentieth day of each calendar month, such retailer shall
file a return for the preceding calendar month. Such return
shall be filed on forms prescribed by the Department and
shall furnish such information as the Department may
reasonably require.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter.
The taxpayer shall also file a return with the Department for
each of the first two months of each calendar quarter, on or
before the twentieth day of the following calendar month,
stating:
1. The name of the seller;
2. The address of the principal place of business
from which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of
this Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the
Department may require.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to
be due on the return shall be deemed assessed.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. The term "average
monthly tax liability" means the sum of the taxpayer's
liabilities under this Act, and under all other State and
local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make
those payments for a minimum of one year beginning on October
1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic
funds transfer and any taxpayers authorized to voluntarily
make payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
If the taxpayer's average monthly tax liability to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act, the Service Use Tax Act was
$10,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payments to the Department on or before the 7th, 15th, 22nd
and last day of the month during which such liability is
incurred. If the month during which such tax liability is
incurred began prior to January 1, 1985, each payment shall
be in an amount equal to 1/4 of the taxpayer's actual
liability for the month or an amount set by the Department
not to exceed 1/4 of the average monthly liability of the
taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability
and the month of lowest liability in such 4 quarter period).
If the month during which such tax liability is incurred
begins on or after January 1, 1985, and prior to January 1,
1987, each payment shall be in an amount equal to 22.5% of
the taxpayer's actual liability for the month or 27.5% of the
taxpayer's liability for the same calendar month of the
preceding year. If the month during which such tax liability
is incurred begins on or after January 1, 1987, and prior to
January 1, 1988, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or
26.25% of the taxpayer's liability for the same calendar
month of the preceding year. If the month during which such
tax liability is incurred begins on or after January 1, 1988,
and prior to January 1, 1989, or begins on or after January
1, 1996, each payment shall be in an amount equal to 22.5% of
the taxpayer's actual liability for the month or 25% of the
taxpayer's liability for the same calendar month of the
preceding year. If the month during which such tax liability
is incurred begins on or after January 1, 1989, and prior to
January 1, 1996, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or 25%
of the taxpayer's liability for the same calendar month of
the preceding year or 100% of the taxpayer's actual liability
for the quarter monthly reporting period. The amount of such
quarter monthly payments shall be credited against the final
tax liability of the taxpayer's return for that month. Once
applicable, the requirement of the making of quarter monthly
payments to the Department shall continue until such
taxpayer's average monthly liability to the Department during
the preceding 4 complete calendar quarters (excluding the
month of highest liability and the month of lowest liability)
is less than $9,000, or until such taxpayer's average monthly
liability to the Department as computed for each calendar
quarter of the 4 preceding complete calendar quarter period
is less than $10,000. However, if a taxpayer can show the
Department that a substantial change in the taxpayer's
business has occurred which causes the taxpayer to anticipate
that his average monthly tax liability for the reasonably
foreseeable future will fall below $10,000, then such
taxpayer may petition the Department for change in such
taxpayer's reporting status. The Department shall change
such taxpayer's reporting status unless it finds that such
change is seasonal in nature and not likely to be long term.
If any such quarter monthly payment is not paid at the time
or in the amount required by this Section, then the taxpayer
shall be liable for penalties and interest on the difference
between the minimum amount due and the amount of such quarter
monthly payment actually and timely paid, except insofar as
the taxpayer has previously made payments for that month to
the Department in excess of the minimum payments previously
due as provided in this Section. The Department shall make
reasonable rules and regulations to govern the quarter
monthly payment amount and quarter monthly payment dates for
taxpayers who file on other than a calendar monthly basis.
If any such payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly return,
the Department shall issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment,
which memorandum may be submitted by the taxpayer to the
Department in payment of tax liability subsequently to be
remitted by the taxpayer to the Department or be assigned by
the taxpayer to a similar taxpayer under this Act, the
Retailers' Occupation Tax Act, the Service Occupation Tax Act
or the Service Use Tax Act, in accordance with reasonable
rules and regulations to be prescribed by the Department,
except that if such excess payment is shown on an original
monthly return and is made after December 31, 1986, no credit
memorandum shall be issued, unless requested by the taxpayer.
If no such request is made, the taxpayer may credit such
excess payment against tax liability subsequently to be
remitted by the taxpayer to the Department under this Act,
the Retailers' Occupation Tax Act, the Service Occupation Tax
Act or the Service Use Tax Act, in accordance with reasonable
rules and regulations prescribed by the Department. If the
Department subsequently determines that all or any part of
the credit taken was not actually due to the taxpayer, the
taxpayer's 2.1% or 1.75% vendor's discount shall be reduced
by 2.1% or 1.75% of the difference between the credit taken
and that actually due, and the taxpayer shall be liable for
penalties and interest on such difference.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May and June of a given year being due by July 20 of
such year; with the return for July, August and September of
a given year being due by October 20 of such year, and with
the return for October, November and December of a given year
being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly
or quarterly return and if the retailer's average monthly tax
liability to the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January
20 of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act
concerning the time within which a retailer may file his
return, in the case of any retailer who ceases to engage in a
kind of business which makes him responsible for filing
returns under this Act, such retailer shall file a final
return under this Act with the Department not more than one
month after discontinuing such business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered
with an agency of this State, every retailer selling this
kind of tangible personal property shall file, with the
Department, upon a form to be prescribed and supplied by the
Department, a separate return for each such item of tangible
personal property which the retailer sells, except that
where, in the same transaction, a retailer of aircraft,
watercraft, motor vehicles or trailers transfers more than
one aircraft, watercraft, motor vehicle or trailer to another
aircraft, watercraft, motor vehicle or trailer retailer for
the purpose of resale, that seller for resale may report the
transfer of all the aircraft, watercraft, motor vehicles or
trailers involved in that transaction to the Department on
the same uniform invoice-transaction reporting return form.
For purposes of this Section, "watercraft" means a Class 2,
Class 3, or Class 4 watercraft as defined in Section 3-2 of
the Boat Registration and Safety Act, a personal watercraft,
or any boat equipped with an inboard motor.
The transaction reporting return in the case of motor
vehicles or trailers that are required to be registered with
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of the Illinois
Vehicle Code and must show the name and address of the
seller; the name and address of the purchaser; the amount of
the selling price including the amount allowed by the
retailer for traded-in property, if any; the amount allowed
by the retailer for the traded-in tangible personal property,
if any, to the extent to which Section 2 of this Act allows
an exemption for the value of traded-in property; the balance
payable after deducting such trade-in allowance from the
total selling price; the amount of tax due from the retailer
with respect to such transaction; the amount of tax collected
from the purchaser by the retailer on such transaction (or
satisfactory evidence that such tax is not due in that
particular instance, if that is claimed to be the fact); the
place and date of the sale; a sufficient identification of
the property sold; such other information as is required in
Section 5-402 of the Illinois Vehicle Code, and such other
information as the Department may reasonably require.
The transaction reporting return in the case of
watercraft and aircraft must show the name and address of the
seller; the name and address of the purchaser; the amount of
the selling price including the amount allowed by the
retailer for traded-in property, if any; the amount allowed
by the retailer for the traded-in tangible personal property,
if any, to the extent to which Section 2 of this Act allows
an exemption for the value of traded-in property; the balance
payable after deducting such trade-in allowance from the
total selling price; the amount of tax due from the retailer
with respect to such transaction; the amount of tax collected
from the purchaser by the retailer on such transaction (or
satisfactory evidence that such tax is not due in that
particular instance, if that is claimed to be the fact); the
place and date of the sale, a sufficient identification of
the property sold, and such other information as the
Department may reasonably require.
Such transaction reporting return shall be filed not
later than 20 days after the date of delivery of the item
that is being sold, but may be filed by the retailer at any
time sooner than that if he chooses to do so. The
transaction reporting return and tax remittance or proof of
exemption from the tax that is imposed by this Act may be
transmitted to the Department by way of the State agency with
which, or State officer with whom, the tangible personal
property must be titled or registered (if titling or
registration is required) if the Department and such agency
or State officer determine that this procedure will expedite
the processing of applications for title or registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a tax
receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such
purchaser may submit to the agency with which, or State
officer with whom, he must title or register the tangible
personal property that is involved (if titling or
registration is required) in support of such purchaser's
application for an Illinois certificate or other evidence of
title or registration to such tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user
has paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment
of tax or proof of exemption made to the Department before
the retailer is willing to take these actions and such user
has not paid the tax to the retailer, such user may certify
to the fact of such delay by the retailer, and may (upon the
Department being satisfied of the truth of such
certification) transmit the information required by the
transaction reporting return and the remittance for tax or
proof of exemption directly to the Department and obtain his
tax receipt or exemption determination, in which event the
transaction reporting return and tax remittance (if a tax
payment was required) shall be credited by the Department to
the proper retailer's account with the Department, but
without the 2.1% or 1.75% discount provided for in this
Section being allowed. When the user pays the tax directly
to the Department, he shall pay the tax in the same amount
and in the same form in which it would be remitted if the tax
had been remitted to the Department by the retailer.
Where a retailer collects the tax with respect to the
selling price of tangible personal property which he sells
and the purchaser thereafter returns such tangible personal
property and the retailer refunds the selling price thereof
to the purchaser, such retailer shall also refund, to the
purchaser, the tax so collected from the purchaser. When
filing his return for the period in which he refunds such tax
to the purchaser, the retailer may deduct the amount of the
tax so refunded by him to the purchaser from any other use
tax which such retailer may be required to pay or remit to
the Department, as shown by such return, if the amount of the
tax to be deducted was previously remitted to the Department
by such retailer. If the retailer has not previously
remitted the amount of such tax to the Department, he is
entitled to no deduction under this Act upon refunding such
tax to the purchaser.
Any retailer filing a return under this Section shall
also include (for the purpose of paying tax thereon) the
total tax covered by such return upon the selling price of
tangible personal property purchased by him at retail from a
retailer, but as to which the tax imposed by this Act was not
collected from the retailer filing such return, and such
retailer shall remit the amount of such tax to the Department
when filing such return.
If experience indicates such action to be practicable,
the Department may prescribe and furnish a combination or
joint return which will enable retailers, who are required to
file returns hereunder and also under the Retailers'
Occupation Tax Act, to furnish all the return information
required by both Acts on the one form.
Where the retailer has more than one business registered
with the Department under separate registration under this
Act, such retailer may not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered
business.
Beginning January 1, 1990, each month the Department
shall pay into the State and Local Sales Tax Reform Fund, a
special fund in the State Treasury which is hereby created,
the net revenue realized for the preceding month from the 1%
tax on sales of food for human consumption which is to be
consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks and food which has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes and needles used
by diabetics.
Beginning January 1, 1990, each month the Department
shall pay into the County and Mass Transit District Fund 4%
of the net revenue realized for the preceding month from the
6.25% general rate on the selling price of tangible personal
property which is purchased outside Illinois at retail from a
retailer and which is titled or registered by an agency of
this State's government.
Beginning January 1, 1990, each month the Department
shall pay into the State and Local Sales Tax Reform Fund, a
special fund in the State Treasury, 20% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property, other
than tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government.
Beginning January 1, 1990, each month the Department
shall pay into the Local Government Tax Fund 16% of the net
revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property which is purchased outside Illinois at retail from a
retailer and which is titled or registered by an agency of
this State's government.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into
the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
and on and after July 1, 1989, 3.8% thereof shall be paid
into the Build Illinois Fund; provided, however, that if in
any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
as the case may be, of the moneys received by the Department
and required to be paid into the Build Illinois Fund pursuant
to Section 3 of the Retailers' Occupation Tax Act, Section 9
of the Use Tax Act, Section 9 of the Service Use Tax Act, and
Section 9 of the Service Occupation Tax Act, such Acts being
hereinafter called the "Tax Acts" and such aggregate of 2.2%
or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred
to the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount
(as defined in Section 3 of the Retailers' Occupation Tax
Act), an amount equal to the difference shall be immediately
paid into the Build Illinois Fund from other moneys received
by the Department pursuant to the Tax Acts; and further
provided, that if on the last business day of any month the
sum of (1) the Tax Act Amount required to be deposited into
the Build Illinois Bond Account in the Build Illinois Fund
during such month and (2) the amount transferred during such
month to the Build Illinois Fund from the State and Local
Sales Tax Reform Fund shall have been less than 1/12 of the
Annual Specified Amount, an amount equal to the difference
shall be immediately paid into the Build Illinois Fund from
other moneys received by the Department pursuant to the Tax
Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater
of (i) the Tax Act Amount or (ii) the Annual Specified Amount
for such fiscal year; and, further provided, that the amounts
payable into the Build Illinois Fund under this clause (b)
shall be payable only until such time as the aggregate amount
on deposit under each trust indenture securing Bonds issued
and outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and
on any Bonds expected to be issued thereafter and all fees
and costs payable with respect thereto, all as certified by
the Director of the Bureau of the Budget. If on the last
business day of any month in which Bonds are outstanding
pursuant to the Build Illinois Bond Act, the aggregate of the
moneys deposited in the Build Illinois Bond Account in the
Build Illinois Fund in such month shall be less than the
amount required to be transferred in such month from the
Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence
shall be deemed to constitute payments pursuant to clause (b)
of the preceding sentence and shall reduce the amount
otherwise payable for such fiscal year pursuant to clause (b)
of the preceding sentence. The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois
Fund as provided in the preceding paragraph or in any
amendment thereto hereafter enacted, the following specified
monthly installment of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority provided under Section 8.25f of the
State Finance Act, but not in excess of the sums designated
as "Total Deposit", shall be deposited in the aggregate from
collections under Section 9 of the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 9 of the Service Occupation
Tax Act, and Section 3 of the Retailers' Occupation Tax Act
into the McCormick Place Expansion Project Fund in the
specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 84,000,000
2003 89,000,000
2004 93,000,000
2005 97,000,000
2006 102,000,000
2007 and 106,000,000
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority
Act, but not after fiscal year 2029.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year,
but not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Build Illinois
Fund and the McCormick Place Expansion Project Fund pursuant
to the preceding paragraphs or in any amendment thereto
hereafter enacted, each month the Department shall pay into
the Local Government Distributive Fund .4% of the net revenue
realized for the preceding month from the 5% general rate, or
.4% of 80% of the net revenue realized for the preceding
month from the 6.25% general rate, as the case may be, on the
selling price of tangible personal property which amount
shall, subject to appropriation, be distributed as provided
in Section 2 of the State Revenue Sharing Act. No payments or
distributions pursuant to this paragraph shall be made if the
tax imposed by this Act on photoprocessing products is
declared unconstitutional, or if the proceeds from such tax
are unavailable for distribution because of litigation.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Local Government Distributive Fund pursuant to the preceding
paragraphs or in any amendments thereto hereafter enacted,
beginning July 1, 1993, the Department shall each month pay
into the Illinois Tax Increment Fund 0.27% of 80% of the net
revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the
State Treasury and 25% shall be reserved in a special account
and used only for the transfer to the Common School Fund as
part of the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
As soon as possible after the first day of each month,
upon certification of the Department of Revenue, the
Comptroller shall order transferred and the Treasurer shall
transfer from the General Revenue Fund to the Motor Fuel Tax
Fund an amount equal to 1.7% of 80% of the net revenue
realized under this Act for the second preceding month;
except that this transfer shall not be made for the months
February through June of 1992.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail
in Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
(Source: P.A. 89-379, eff. 1-1-96; 89-626, eff. 8-9-96;
90-491, eff. 1-1-99; 90-612, eff. 7-8-98.)
Section 120. The Service Use Tax Act is amended by
re-enacting Sections 2, 3, 3-5, 3-10, 3-15, 3-20, 3-25, 3-30,
3-35, 3-40, 3-45, 3-50, 3-55, 3-60, 3-65, 3d, 7a, 9, 10, and
15 as follows:
(35 ILCS 110/2) (from Ch. 120, par. 439.32)
Sec. 2. "Use" means the exercise by any person of any
right or power over tangible personal property incident to
the ownership of that property, but does not include the sale
or use for demonstration by him of that property in any form
as tangible personal property in the regular course of
business. "Use" does not mean the interim use of tangible
personal property nor the physical incorporation of tangible
personal property, as an ingredient or constituent, into
other tangible personal property, (a) which is sold in the
regular course of business or (b) which the person
incorporating such ingredient or constituent therein has
undertaken at the time of such purchase to cause to be
transported in interstate commerce to destinations outside
the State of Illinois.
"Purchased from a serviceman" means the acquisition of
the ownership of, or title to, tangible personal property
through a sale of service.
"Purchaser" means any person who, through a sale of
service, acquires the ownership of, or title to, any tangible
personal property.
"Cost price" means the consideration paid by the
serviceman for a purchase valued in money, whether paid in
money or otherwise, including cash, credits and services, and
shall be determined without any deduction on account of the
supplier's cost of the property sold or on account of any
other expense incurred by the supplier. When a serviceman
contracts out part or all of the services required in his
sale of service, it shall be presumed that the cost price to
the serviceman of the property transferred to him or her by
his or her subcontractor is equal to 50% of the
subcontractor's charges to the serviceman in the absence of
proof of the consideration paid by the subcontractor for the
purchase of such property.
"Selling price" means the consideration for a sale valued
in money whether received in money or otherwise, including
cash, credits and service, and shall be determined without
any deduction on account of the serviceman's cost of the
property sold, the cost of materials used, labor or service
cost or any other expense whatsoever, but does not include
interest or finance charges which appear as separate items on
the bill of sale or sales contract nor charges that are added
to prices by sellers on account of the seller's duty to
collect, from the purchaser, the tax that is imposed by this
Act.
"Department" means the Department of Revenue.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint venture, public or
private corporation, limited liability company, and any
receiver, executor, trustee, guardian or other representative
appointed by order of any court.
"Sale of service" means any transaction except:
(1) a retail sale of tangible personal property
taxable under the Retailers' Occupation Tax Act or under
the Use Tax Act.
(2) a sale of tangible personal property for the
purpose of resale made in compliance with Section 2c of
the Retailers' Occupation Tax Act.
(3) except as hereinafter provided, a sale or
transfer of tangible personal property as an incident to
the rendering of service for or by any governmental body,
or for or by any corporation, society, association,
foundation or institution organized and operated
exclusively for charitable, religious or educational
purposes or any not-for-profit corporation, society,
association, foundation, institution or organization
which has no compensated officers or employees and which
is organized and operated primarily for the recreation of
persons 55 years of age or older. A limited liability
company may qualify for the exemption under this
paragraph only if the limited liability company is
organized and operated exclusively for educational
purposes.
(4) a sale or transfer of tangible personal
property as an incident to the rendering of service for
interstate carriers for hire for use as rolling stock
moving in interstate commerce or by lessors under a lease
of one year or longer, executed or in effect at the time
of purchase of personal property, to interstate carriers
for hire for use as rolling stock moving in interstate
commerce so long as so used by such interstate carriers
for hire, and equipment operated by a telecommunications
provider, licensed as a common carrier by the Federal
Communications Commission, which is permanently installed
in or affixed to aircraft moving in interstate commerce.
(4a) a sale or transfer of tangible personal
property as an incident to the rendering of service for
owners, lessors, or shippers of tangible personal
property which is utilized by interstate carriers for
hire for use as rolling stock moving in interstate
commerce so long as so used by interstate carriers for
hire, and equipment operated by a telecommunications
provider, licensed as a common carrier by the Federal
Communications Commission, which is permanently installed
in or affixed to aircraft moving in interstate commerce.
(5) a sale or transfer of machinery and equipment
used primarily in the process of the manufacturing or
assembling, either in an existing, an expanded or a new
manufacturing facility, of tangible personal property for
wholesale or retail sale or lease, whether such sale or
lease is made directly by the manufacturer or by some
other person, whether the materials used in the process
are owned by the manufacturer or some other person, or
whether such sale or lease is made apart from or as an
incident to the seller's engaging in a service occupation
and the applicable tax is a Service Use Tax or Service
Occupation Tax, rather than Use Tax or Retailers'
Occupation Tax.
(5a) the repairing, reconditioning or remodeling,
for a common carrier by rail, of tangible personal
property which belongs to such carrier for hire, and as
to which such carrier receives the physical possession of
the repaired, reconditioned or remodeled item of tangible
personal property in Illinois, and which such carrier
transports, or shares with another common carrier in the
transportation of such property, out of Illinois on a
standard uniform bill of lading showing the person who
repaired, reconditioned or remodeled the property to a
destination outside Illinois, for use outside Illinois.
(5b) a sale or transfer of tangible personal
property which is produced by the seller thereof on
special order in such a way as to have made the
applicable tax the Service Occupation Tax or the Service
Use Tax, rather than the Retailers' Occupation Tax or the
Use Tax, for an interstate carrier by rail which receives
the physical possession of such property in Illinois, and
which transports such property, or shares with another
common carrier in the transportation of such property,
out of Illinois on a standard uniform bill of lading
showing the seller of the property as the shipper or
consignor of such property to a destination outside
Illinois, for use outside Illinois.
(6) a sale or transfer of distillation machinery
and equipment, sold as a unit or kit and assembled or
installed by the retailer, which machinery and equipment
is certified by the user to be used only for the
production of ethyl alcohol that will be used for
consumption as motor fuel or as a component of motor fuel
for the personal use of such user and not subject to sale
or resale.
(7) at the election of any serviceman not required
to be otherwise registered as a retailer under Section 2a
of the Retailers' Occupation Tax Act, made for each
fiscal year sales of service in which the aggregate
annual cost price of tangible personal property
transferred as an incident to the sales of service is
less than 35%, or 75% in the case of servicemen
transferring prescription drugs or servicemen engaged in
graphic arts production, of the aggregate annual total
gross receipts from all sales of service. The purchase of
such tangible personal property by the serviceman shall
be subject to tax under the Retailers' Occupation Tax Act
and the Use Tax Act. However, if a primary serviceman
who has made the election described in this paragraph
subcontracts service work to a secondary serviceman who
has also made the election described in this paragraph,
the primary serviceman does not incur a Use Tax liability
if the secondary serviceman (i) has paid or will pay Use
Tax on his or her cost price of any tangible personal
property transferred to the primary serviceman and (ii)
certifies that fact in writing to the primary serviceman.
Tangible personal property transferred incident to the
completion of a maintenance agreement is exempt from the tax
imposed pursuant to this Act.
Exemption (5) also includes machinery and equipment used
in the general maintenance or repair of such exempt machinery
and equipment or for in-house manufacture of exempt machinery
and equipment. For the purposes of exemption (5), each of
these terms shall have the following meanings: (1)
"manufacturing process" shall mean the production of any
article of tangible personal property, whether such article
is a finished product or an article for use in the process of
manufacturing or assembling a different article of tangible
personal property, by procedures commonly regarded as
manufacturing, processing, fabricating, or refining which
changes some existing material or materials into a material
with a different form, use or name. In relation to a
recognized integrated business composed of a series of
operations which collectively constitute manufacturing, or
individually constitute manufacturing operations, the
manufacturing process shall be deemed to commence with the
first operation or stage of production in the series, and
shall not be deemed to end until the completion of the final
product in the last operation or stage of production in the
series; and further, for purposes of exemption (5),
photoprocessing is deemed to be a manufacturing process of
tangible personal property for wholesale or retail sale; (2)
"assembling process" shall mean the production of any article
of tangible personal property, whether such article is a
finished product or an article for use in the process of
manufacturing or assembling a different article of tangible
personal property, by the combination of existing materials
in a manner commonly regarded as assembling which results in
a material of a different form, use or name; (3) "machinery"
shall mean major mechanical machines or major components of
such machines contributing to a manufacturing or assembling
process; and (4) "equipment" shall include any independent
device or tool separate from any machinery but essential to
an integrated manufacturing or assembly process; including
computers used primarily in operating exempt machinery and
equipment in a computer assisted design, computer assisted
manufacturing (CAD/CAM) system; or any subunit or assembly
comprising a component of any machinery or auxiliary, adjunct
or attachment parts of machinery, such as tools, dies, jigs,
fixtures, patterns and molds; or any parts which require
periodic replacement in the course of normal operation; but
shall not include hand tools. The purchaser of such machinery
and equipment who has an active resale registration number
shall furnish such number to the seller at the time of
purchase. The user of such machinery and equipment and tools
without an active resale registration number shall prepare a
certificate of exemption for each transaction stating facts
establishing the exemption for that transaction, which
certificate shall be available to the Department for
inspection or audit. The Department shall prescribe the form
of the certificate.
Any informal rulings, opinions or letters issued by the
Department in response to an inquiry or request for any
opinion from any person regarding the coverage and
applicability of exemption (5) to specific devices shall be
published, maintained as a public record, and made available
for public inspection and copying. If the informal ruling,
opinion or letter contains trade secrets or other
confidential information, where possible the Department shall
delete such information prior to publication. Whenever such
informal rulings, opinions, or letters contain any policy of
general applicability, the Department shall formulate and
adopt such policy as a rule in accordance with the provisions
of the Illinois Administrative Procedure Act.
On and after July 1, 1987, no entity otherwise eligible
under exemption (3) of this Section shall make tax free
purchases unless it has an active exemption identification
number issued by the Department.
The purchase, employment and transfer of such tangible
personal property as newsprint and ink for the primary
purpose of conveying news (with or without other information)
is not a purchase, use or sale of service or of tangible
personal property within the meaning of this Act.
"Serviceman" means any person who is engaged in the
occupation of making sales of service.
"Sale at retail" means "sale at retail" as defined in the
Retailers' Occupation Tax Act.
"Supplier" means any person who makes sales of tangible
personal property to servicemen for the purpose of resale as
an incident to a sale of service.
"Serviceman maintaining a place of business in this
State", or any like term, means and includes any serviceman:
1. having or maintaining within this State,
directly or by a subsidiary, an office, distribution
house, sales house, warehouse or other place of business,
or any agent or other representative operating within
this State under the authority of the serviceman or its
subsidiary, irrespective of whether such place of
business or agent or other representative is located here
permanently or temporarily, or whether such serviceman or
subsidiary is licensed to do business in this State;
2. soliciting orders for tangible personal property
by means of a telecommunication or television shopping
system (which utilizes toll free numbers) which is
intended by the retailer to be broadcast by cable
television or other means of broadcasting, to consumers
located in this State;
3. pursuant to a contract with a broadcaster or
publisher located in this State, soliciting orders for
tangible personal property by means of advertising which
is disseminated primarily to consumers located in this
State and only secondarily to bordering jurisdictions;
4. soliciting orders for tangible personal property
by mail if the solicitations are substantial and
recurring and if the retailer benefits from any banking,
financing, debt collection, telecommunication, or
marketing activities occurring in this State or benefits
from the location in this State of authorized
installation, servicing, or repair facilities;
5. being owned or controlled by the same interests
which own or control any retailer engaging in business in
the same or similar line of business in this State;
6. having a franchisee or licensee operating under
its trade name if the franchisee or licensee is required
to collect the tax under this Section;
7. pursuant to a contract with a cable television
operator located in this State, soliciting orders for
tangible personal property by means of advertising which
is transmitted or distributed over a cable television
system in this State; or
8. engaging in activities in Illinois, which
activities in the state in which the supply business
engaging in such activities is located would constitute
maintaining a place of business in that state.
(Source: P.A. 88-480; 88-505; 88-547; 88-670, eff. 12-2-94;
89-675, eff. 8-14-96.)
(35 ILCS 110/3) (from Ch. 120, par. 439.33)
Sec. 3. Tax imposed. A tax is imposed upon the
privilege of using in this State real or tangible personal
property acquired as an incident to the purchase of a service
from a serviceman, including computer software, and including
photographs, negatives, and positives that are the product of
photoprocessing, but not including products of
photoprocessing produced for use in motion pictures for
public commercial exhibition.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475; 87-879.)
(35 ILCS 110/3-5) (from Ch. 120, par. 439.33-5)
Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(2) Personal property purchased by a non-profit Illinois
county fair association for use in conducting, operating, or
promoting the county fair.
(3) Personal property purchased by a not-for-profit
music or dramatic arts organization that establishes, by
proof required by the Department by rule, that it has
received an exemption under Section 501(c)(3) of the Internal
Revenue Code and that is organized and operated for the
presentation of live public performances of musical or
theatrical works on a regular basis.
(4) Legal tender, currency, medallions, or gold or
silver coinage issued by the State of Illinois, the
government of the United States of America, or the government
of any foreign country, and bullion.
(5) Graphic arts machinery and equipment, including
repair and replacement parts, both new and used, and
including that manufactured on special order or purchased for
lease, certified by the purchaser to be used primarily for
graphic arts production.
(6) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for production agriculture
or State or federal agricultural programs, including
individual replacement parts for the machinery and equipment,
including machinery and equipment purchased for lease, and
including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required
to be registered under Section 3-809 of the Illinois Vehicle
Code, but excluding other motor vehicles required to be
registered under the Illinois Vehicle Code. Horticultural
polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and
equipment under this item (7). Agricultural chemical tender
tanks and dry boxes shall include units sold separately from
a motor vehicle required to be licensed and units sold
mounted on a motor vehicle required to be licensed if the
selling price of the tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders. Precision farming equipment includes,
but is not limited to, soil testing sensors, computers,
monitors, software, global positioning and mapping systems,
and other such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in
the computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not
limited to, the collection, monitoring, and correlation of
animal and crop data for the purpose of formulating animal
diets and agricultural chemicals. This item (7) is exempt
from the provisions of Section 3-75.
(8) Fuel and petroleum products sold to or used by an
air common carrier, certified by the carrier to be used for
consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight destined for
or returning from a location or locations outside the United
States without regard to previous or subsequent domestic
stopovers.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption
of food and beverages acquired as an incident to the purchase
of a service from a serviceman, to the extent that the
proceeds of the service charge are in fact turned over as
tips or as a substitute for tips to the employees who
participate directly in preparing, serving, hosting or
cleaning up the food or beverage function with respect to
which the service charge is imposed.
(10) Oil field exploration, drilling, and production
equipment, including (i) rigs and parts of rigs, rotary rigs,
cable tool rigs, and workover rigs, (ii) pipe and tubular
goods, including casing and drill strings, (iii) pumps and
pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(11) Proceeds from the sale of photoprocessing machinery
and equipment, including repair and replacement parts, both
new and used, including that manufactured on special order,
certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and
equipment purchased for lease.
(12) Coal exploration, mining, offhighway hauling,
processing, maintenance, and reclamation equipment, including
replacement parts and equipment, and including equipment
purchased for lease, but excluding motor vehicles required to
be registered under the Illinois Vehicle Code.
(13) Semen used for artificial insemination of livestock
for direct agricultural production.
(14) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes.
(15) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is leased
in a manner that does not qualify for this exemption or is
used in any other non-exempt manner, the lessor shall be
liable for the tax imposed under this Act or the Use Tax Act,
as the case may be, based on the fair market value of the
property at the time the non-qualifying use occurs. No
lessor shall collect or attempt to collect an amount (however
designated) that purports to reimburse that lessor for the
tax imposed by this Act or the Use Tax Act, as the case may
be, if the tax has not been paid by the lessor. If a lessor
improperly collects any such amount from the lessee, the
lessee shall have a legal right to claim a refund of that
amount from the lessor. If, however, that amount is not
refunded to the lessee for any reason, the lessor is liable
to pay that amount to the Department.
(16) Personal property purchased by a lessor who leases
the property, under a lease of one year or longer executed or
in effect at the time the lessor would otherwise be subject
to the tax imposed by this Act, to a governmental body that
has been issued an active tax exemption identification number
by the Department under Section 1g of the Retailers'
Occupation Tax Act. If the property is leased in a manner
that does not qualify for this exemption or is used in any
other non-exempt manner, the lessor shall be liable for the
tax imposed under this Act or the Use Tax Act, as the case
may be, based on the fair market value of the property at the
time the non-qualifying use occurs. No lessor shall collect
or attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has
not been paid by the lessor. If a lessor improperly collects
any such amount from the lessee, the lessee shall have a
legal right to claim a refund of that amount from the lessor.
If, however, that amount is not refunded to the lessee for
any reason, the lessor is liable to pay that amount to the
Department.
(17) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally
declared disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to
a corporation, society, association, foundation, or
institution that has been issued a sales tax exemption
identification number by the Department that assists victims
of the disaster who reside within the declared disaster area.
(18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including but not limited to municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities
located in the declared disaster area within 6 months after
the disaster.
(Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
eff. 12-12-97; 90-605, eff. 6-30-98.)
(35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
Sec. 3-10. Rate of tax. Unless otherwise provided in
this Section, the tax imposed by this Act is at the rate of
6.25% of the selling price of tangible personal property
transferred as an incident to the sale of service, but, for
the purpose of computing this tax, in no event shall the
selling price be less than the cost price of the property to
the serviceman.
With respect to gasohol, as defined in the Use Tax Act,
the tax imposed by this Act applies to 70% of the selling
price of property transferred as an incident to the sale of
service on or after January 1, 1990, and before July 1, 2003,
and to 100% of the selling price thereafter.
At the election of any registered serviceman made for
each fiscal year, sales of service in which the aggregate
annual cost price of tangible personal property transferred
as an incident to the sales of service is less than 35%, or
75% in the case of servicemen transferring prescription drugs
or servicemen engaged in graphic arts production, of the
aggregate annual total gross receipts from all sales of
service, the tax imposed by this Act shall be based on the
serviceman's cost price of the tangible personal property
transferred as an incident to the sale of those services.
The tax shall be imposed at the rate of 1% on food
prepared for immediate consumption and transferred incident
to a sale of service subject to this Act or the Service
Occupation Tax Act by an entity licensed under the Hospital
Licensing Act or the Nursing Home Care Act. The tax shall
also be imposed at the rate of 1% on food for human
consumption that is to be consumed off the premises where it
is sold (other than alcoholic beverages, soft drinks, and
food that has been prepared for immediate consumption and is
not otherwise included in this paragraph) and prescription
and nonprescription medicines, drugs, medical appliances,
modifications to a motor vehicle for the purpose of rendering
it usable by a disabled person, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use. For the purposes of this Section, the term "soft drinks"
means any complete, finished, ready-to-use, non-alcoholic
drink, whether carbonated or not, including but not limited
to soda water, cola, fruit juice, vegetable juice, carbonated
water, and all other preparations commonly known as soft
drinks of whatever kind or description that are contained in
any closed or sealed bottle, can, carton, or container,
regardless of size. "Soft drinks" does not include coffee,
tea, non-carbonated water, infant formula, milk or milk
products as defined in the Grade A Pasteurized Milk and Milk
Products Act, or drinks containing 50% or more natural fruit
or vegetable juice.
Notwithstanding any other provisions of this Act, "food
for human consumption that is to be consumed off the premises
where it is sold" includes all food sold through a vending
machine, except soft drinks and food products that are
dispensed hot from a vending machine, regardless of the
location of the vending machine.
If the property that is acquired from a serviceman is
acquired outside Illinois and used outside Illinois before
being brought to Illinois for use here and is taxable under
this Act, the "selling price" on which the tax is computed
shall be reduced by an amount that represents a reasonable
allowance for depreciation for the period of prior
out-of-state use.
(Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
6-30-98; 90-606, eff. 6-30-98.)
(35 ILCS 110/3-15) (from Ch. 120, par. 439.33-15)
Sec. 3-15. Photoprocessing. For purposes of the tax
imposed on photographs, negatives, and positives by this Act,
"photoprocessing" includes, but is not limited to, developing
films, positives, negatives, and transparencies, and tinting,
coloring, making, and enlarging prints. Photoprocessing does
not include color separation, typesetting, and platemaking by
photographic means in the graphic arts industry and does not
include any procedure, process, or activity connected with
the creation of the images on the film from which the
negatives, positives, or photographs are derived. The charge
for in-house photoprocessing may not be less than the
photoprocessor's cost price of materials. In transactions in
which products of photoprocessing are sold in conjunction
with other services, if a charge for the photoprocessing
component is not separately stated, tax is imposed on 50% of
the entire selling price unless the sale is made by a
professional photographer, in which case tax is imposed on
10% of the entire selling price.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475.)
(35 ILCS 110/3-20) (from Ch. 120, par. 439.33-20)
Sec. 3-20. Bullion. For purposes of the exemption
pertaining to bullion, "bullion" means gold, silver, or
platinum in a bulk state with a purity of not less than 980
parts per 1,000.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475.)
(35 ILCS 110/3-25) (from Ch. 120, par. 439.33-25)
Sec. 3-25. Computer software. For the purposes of this
Act, "computer software" means a set of statements, data, or
instructions to be used directly or indirectly in a computer
in order to bring about a certain result in any form in which
those statements, data, or instructions may be embodied,
transmitted, or fixed, by any method now known or hereafter
developed, regardless of whether the statements, data, or
instructions are capable of being perceived by or
communicated to humans, and includes prewritten or canned
software that is held for repeated sale or lease, and all
associated documentation and materials, if any, whether
contained on magnetic tapes, discs, cards, or other devices
or media, but does not include software that is adapted to
specific individualized requirements of a purchaser,
custom-made and modified software designed for a particular
or limited use by a purchaser, or software used to operate
exempt machinery and equipment used in the process of
manufacturing or assembling tangible personal property for
wholesale or retail sale or lease.
For the purposes of this Act, computer software shall be
considered to be tangible personal property.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475.)
(35 ILCS 110/3-30) (from Ch. 120, par. 439.33-30)
Sec. 3-30. Graphic arts production. For the purposes of
this Act, "graphic arts production" means printing by one or
more of the common processes or graphic arts production
services as those processes and services are defined in the
Major Group 27 of the U.S. Standard Industrial Classification
Manual.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475.)
(35 ILCS 110/3-35) (from Ch. 120, par. 439.33-35)
Sec. 3-35. Production agriculture. For purposes of this
Act, "production agriculture" means the raising of or the
propagation of livestock; crops for sale for human
consumption; crops for livestock consumption; and production
seed stock grown for the propagation of feed grains and the
husbandry of animals or for the purpose of providing a food
product, including the husbandry of blood stock as a main
source of providing a food product. "Production agriculture"
also means animal husbandry, floriculture, aquaculture,
horticulture, and viticulture.
(Source: P.A. 89-220, eff. 1-1-96.)
(35 ILCS 110/3-40) (from Ch. 120, par. 439.33-40)
Sec. 3-40. Collection. The tax imposed by this Act
shall be collected at the time of purchase in the manner
prescribed by the Department from the user by a serviceman
maintaining a place of business in this State or by a
serviceman authorized by the Department under Section 7 of
this Act, and the tax shall be remitted to the Department as
provided in Section 9 of this Act.
The tax imposed by this Act that is not paid to a
serviceman under this Section shall be paid to the Department
directly by any person using the property within this State
as provided in Section 10 of this Act.
If a serviceman collects Service Use Tax measured by
receipts or selling prices that are not subject to Service
Use Tax, or if a serviceman, in collecting Service Use Tax
measured by receipts or selling prices that are subject to
tax under this Act, collects more from the purchaser than the
required amount of the Service Use Tax on the transaction,
the purchaser shall have a legal right to claim a refund of
that amount from the serviceman. If, however, that amount is
not refunded to the purchaser for any reason, the serviceman
is liable to pay that amount to the Department. This
paragraph does not apply to an amount collected by the
serviceman as Service Use Tax on receipts or selling prices
that are subject to tax under this Act as long as the
collection is made in compliance with the tax collection
brackets prescribed by the Department in its rules and
regulations.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475.)
(35 ILCS 110/3-45) (from Ch. 120, par. 439.33-45)
Sec. 3-45. Multistate exemption. To prevent actual or
likely multistate taxation, the tax imposed by this Act does
not apply to the use of tangible personal property in this
State under the following circumstances:
(a) The use, in this State, of property acquired outside
this State by a nonresident individual and brought into this
State by the individual for his or her own use while
temporarily within this State or while passing through this
State.
(b) The use, in this State, of property that is acquired
outside this State and that is moved into this State for use
as rolling stock moving in interstate commerce.
(c) The use, in this State, of property that is acquired
outside this State and caused to be brought into this State
by a person who has already paid a tax in another state in
respect to the sale, purchase, or use of that property, to
the extent of the amount of the tax properly due and paid in
the other state.
(d) The temporary storage, in this State, of property
that is acquired outside this State and that after being
brought into this State and stored here temporarily, is used
solely outside this State or is physically attached to or
incorporated into other property that is used solely outside
this State, or is altered by converting, fabricating,
manufacturing, printing, processing, or shaping, and, as
altered, is used solely outside this State.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475.)
(35 ILCS 110/3-50) (from Ch. 120, par. 439.33-50)
Sec. 3-50. Rolling stock exemption. The rolling stock
exemption applies to rolling stock used by an interstate
carrier for hire, even just between points in Illinois, if
the rolling stock transports, for hire, persons whose
journeys or property whose shipments originate or terminate
outside Illinois.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475.)
(35 ILCS 110/3-55) (from Ch. 120, par. 439.33-55)
Sec. 3-55. S. O. T. nontaxability. If the serviceman
would not be taxable under the Service Occupation Tax Act
despite all elements of his sale of service occurring in
Illinois, then the tax imposed by this Act does not apply to
the use in this State of the property transferred as a
necessary incident to the sale of service.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475.)
(35 ILCS 110/3-60) (from Ch. 120, par. 439.33-60)
Sec. 3-60. Property acquired by nonresident. The tax
imposed by this Act does not apply to the use, in this State,
of property that is acquired outside this State by a
nonresident individual who then brings the property to this
State for use here and who has used the property outside this
State for at least 3 months before bringing the property to
this State.
Where a business that is not operated in Illinois, but is
operated in another state, is moved to Illinois or opens up
an office, plant, or other business facility in Illinois,
that business shall not be taxed on its use, in Illinois, of
used property that the business bought outside Illinois and
used outside Illinois in the operation of the business for at
least 3 months before moving the used property to Illinois
for use in this State.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475.)
(35 ILCS 110/3-65) (from Ch. 120, par. 439.33-65)
Sec. 3-65. Liability because of amendatory Act.
Revisions in Section 3 (now Sections 3 through 3-65) by
Public Act 85-1135 do not affect tax liability that arose
before January 1, 1990.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475.)
(35 ILCS 110/3d) (from Ch. 120, par. 439.33d)
Sec. 3d. (1) Except as provided in paragraph (2) of this
Section, the selling price of each item of tangible personal
property transferred incident to a sale of service may be
stated as a distinct item by the serviceman to the service
customer and the tax imposed by this Act shall when collected
be stated as a distinct item separate and apart from the
selling price of the tangible personal property. If the
selling price of each item of tangible personal property
transferred incidental to a sale of service is not stated as
a separate item on the serviceman's billing to the service
customer, then the tax imposed by this Act shall be based on
50% of the serviceman's entire billing to the service
customer.
(2) When a serviceman contracts to design, develop and
produce special order machinery or equipment, the tax imposed
by this Act shall be based on the serviceman's cost price of
the tangible personal property transferred incident to the
completion of the contract.
(Source: P.A. 85-1135.)
(35 ILCS 110/7a) (from Ch. 120, par. 439.37a)
Sec. 7a. It is unlawful for any serviceman to advertise
or hold out or state to the public or to any service
customer, purchaser, consumer or user, directly or
indirectly, that the tax imposed by this Act or any part
thereof will be assumed or absolved by the serviceman or that
it will not be added to the selling price of the property
transferred as an incident to a sale of service, or if added
that it or any part thereof will be refunded other than when
the serviceman refunds the selling price and tax because of
the merchandise being returned to the serviceman or other
than when the serviceman credits or refunds the tax to the
service customer to support a claim filed with the Department
under the Service Occupation Tax Act or under this Act. Any
person violating any of the provisions of this Section within
the State shall be guilty of a Class A misdemeanor.
(Source: P.A. 85-1135.)
(35 ILCS 110/9) (from Ch. 120, par. 439.39)
Sec. 9. Each serviceman required or authorized to
collect the tax herein imposed shall pay to the Department
the amount of such tax (except as otherwise provided) at the
time when he is required to file his return for the period
during which such tax was collected, less a discount of 2.1%
prior to January 1, 1990 and 1.75% on and after January 1,
1990, or $5 per calendar year, whichever is greater, which is
allowed to reimburse the serviceman for expenses incurred in
collecting the tax, keeping records, preparing and filing
returns, remitting the tax and supplying data to the
Department on request. A serviceman need not remit that part
of any tax collected by him to the extent that he is required
to pay and does pay the tax imposed by the Service Occupation
Tax Act with respect to his sale of service involving the
incidental transfer by him of the same property.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar
month in accordance with reasonable Rules and Regulations to
be promulgated by the Department. Such return shall be filed
on a form prescribed by the Department and shall contain such
information as the Department may reasonably require.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter.
The taxpayer shall also file a return with the Department for
each of the first two months of each calendar quarter, on or
before the twentieth day of the following calendar month,
stating:
1. The name of the seller;
2. The address of the principal place of business
from which he engages in business as a serviceman in this
State;
3. The total amount of taxable receipts received by
him during the preceding calendar month, including
receipts from charge and time sales, but less all
deductions allowed by law;
4. The amount of credit provided in Section 2d of
this Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the
Department may require.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to
be due on the return shall be deemed assessed.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who
has an average monthly tax liability of $100,000 or more
shall make all payments required by rules of the Department
by electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. The term "average
monthly tax liability" means the sum of the taxpayer's
liabilities under this Act, and under all other State and
local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make
those payments for a minimum of one year beginning on October
1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic
funds transfer and any taxpayers authorized to voluntarily
make payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
If the serviceman is otherwise required to file a monthly
return and if the serviceman's average monthly tax liability
to the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given
year being due by April 20 of such year; with the return for
April, May and June of a given year being due by July 20 of
such year; with the return for July, August and September of
a given year being due by October 20 of such year, and with
the return for October, November and December of a given year
being due by January 20 of the following year.
If the serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's average monthly
tax liability to the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January
20 of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act
concerning the time within which a serviceman may file his
return, in the case of any serviceman who ceases to engage in
a kind of business which makes him responsible for filing
returns under this Act, such serviceman shall file a final
return under this Act with the Department not more than 1
month after discontinuing such business.
Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds
the selling price thereof to the purchaser, such serviceman
shall also refund, to the purchaser, the tax so collected
from the purchaser. When filing his return for the period in
which he refunds such tax to the purchaser, the serviceman
may deduct the amount of the tax so refunded by him to the
purchaser from any other Service Use Tax, Service Occupation
Tax, retailers' occupation tax or use tax which such
serviceman may be required to pay or remit to the Department,
as shown by such return, provided that the amount of the tax
to be deducted shall previously have been remitted to the
Department by such serviceman. If the serviceman shall not
previously have remitted the amount of such tax to the
Department, he shall be entitled to no deduction hereunder
upon refunding such tax to the purchaser.
Any serviceman filing a return hereunder shall also
include the total tax upon the selling price of tangible
personal property purchased for use by him as an incident to
a sale of service, and such serviceman shall remit the amount
of such tax to the Department when filing such return.
If experience indicates such action to be practicable,
the Department may prescribe and furnish a combination or
joint return which will enable servicemen, who are required
to file returns hereunder and also under the Service
Occupation Tax Act, to furnish all the return information
required by both Acts on the one form.
Where the serviceman has more than one business
registered with the Department under separate registration
hereunder, such serviceman shall not file each return that is
due as a single return covering all such registered
businesses, but shall file separate returns for each such
registered business.
Beginning January 1, 1990, each month the Department
shall pay into the State and Local Tax Reform Fund, a special
fund in the State Treasury, the net revenue realized for the
preceding month from the 1% tax on sales of food for human
consumption which is to be consumed off the premises where it
is sold (other than alcoholic beverages, soft drinks and food
which has been prepared for immediate consumption) and
prescription and nonprescription medicines, drugs, medical
appliances and insulin, urine testing materials, syringes and
needles used by diabetics.
Beginning January 1, 1990, each month the Department
shall pay into the State and Local Sales Tax Reform Fund 20%
of the net revenue realized for the preceding month from the
6.25% general rate on transfers of tangible personal
property, other than tangible personal property which is
purchased outside Illinois at retail from a retailer and
which is titled or registered by an agency of this State's
government.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into
the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
and on and after July 1, 1989, 3.8% thereof shall be paid
into the Build Illinois Fund; provided, however, that if in
any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
as the case may be, of the moneys received by the Department
and required to be paid into the Build Illinois Fund pursuant
to Section 3 of the Retailers' Occupation Tax Act, Section 9
of the Use Tax Act, Section 9 of the Service Use Tax Act, and
Section 9 of the Service Occupation Tax Act, such Acts being
hereinafter called the "Tax Acts" and such aggregate of 2.2%
or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred
to the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount
(as defined in Section 3 of the Retailers' Occupation Tax
Act), an amount equal to the difference shall be immediately
paid into the Build Illinois Fund from other moneys received
by the Department pursuant to the Tax Acts; and further
provided, that if on the last business day of any month the
sum of (1) the Tax Act Amount required to be deposited into
the Build Illinois Bond Account in the Build Illinois Fund
during such month and (2) the amount transferred during such
month to the Build Illinois Fund from the State and Local
Sales Tax Reform Fund shall have been less than 1/12 of the
Annual Specified Amount, an amount equal to the difference
shall be immediately paid into the Build Illinois Fund from
other moneys received by the Department pursuant to the Tax
Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater
of (i) the Tax Act Amount or (ii) the Annual Specified Amount
for such fiscal year; and, further provided, that the amounts
payable into the Build Illinois Fund under this clause (b)
shall be payable only until such time as the aggregate amount
on deposit under each trust indenture securing Bonds issued
and outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and
on any Bonds expected to be issued thereafter and all fees
and costs payable with respect thereto, all as certified by
the Director of the Bureau of the Budget. If on the last
business day of any month in which Bonds are outstanding
pursuant to the Build Illinois Bond Act, the aggregate of the
moneys deposited in the Build Illinois Bond Account in the
Build Illinois Fund in such month shall be less than the
amount required to be transferred in such month from the
Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence
shall be deemed to constitute payments pursuant to clause (b)
of the preceding sentence and shall reduce the amount
otherwise payable for such fiscal year pursuant to clause (b)
of the preceding sentence. The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois
Fund as provided in the preceding paragraph or in any
amendment thereto hereafter enacted, the following specified
monthly installment of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority provided under Section 8.25f of the
State Finance Act, but not in excess of the sums designated
as "Total Deposit", shall be deposited in the aggregate from
collections under Section 9 of the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 9 of the Service Occupation
Tax Act, and Section 3 of the Retailers' Occupation Tax Act
into the McCormick Place Expansion Project Fund in the
specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 84,000,000
2003 89,000,000
2004 93,000,000
2005 97,000,000
2006 102,000,000
2007 and 106,000,000
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2029.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year,
but not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Build Illinois
Fund and the McCormick Place Expansion Project Fund pursuant
to the preceding paragraphs or in any amendment thereto
hereafter enacted, each month the Department shall pay into
the Local Government Distributive Fund 0.4% of the net
revenue realized for the preceding month from the 5% general
rate or 0.4% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate, as the case may
be, on the selling price of tangible personal property which
amount shall, subject to appropriation, be distributed as
provided in Section 2 of the State Revenue Sharing Act. No
payments or distributions pursuant to this paragraph shall be
made if the tax imposed by this Act on photo processing
products is declared unconstitutional, or if the proceeds
from such tax are unavailable for distribution because of
litigation.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Local Government Distributive Fund pursuant to the preceding
paragraphs or in any amendments thereto hereafter enacted,
beginning July 1, 1993, the Department shall each month pay
into the Illinois Tax Increment Fund 0.27% of 80% of the net
revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property.
All remaining moneys received by the Department pursuant
to this Act shall be paid into the General Revenue Fund of
the State Treasury.
As soon as possible after the first day of each month,
upon certification of the Department of Revenue, the
Comptroller shall order transferred and the Treasurer shall
transfer from the General Revenue Fund to the Motor Fuel Tax
Fund an amount equal to 1.7% of 80% of the net revenue
realized under this Act for the second preceding month;
except that this transfer shall not be made for the months
February through June, 1992.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
(Source: P.A. 89-379, eff. 1-1-96; 90-612, eff. 7-8-98.)
(35 ILCS 110/10) (from Ch. 120, par. 439.40)
Sec. 10. Where property is acquired as an incident to the
purchase of a service from a serviceman for use in this State
by a purchaser who did not pay the tax herein imposed to the
serviceman, and who does not file returns with the Department
as a serviceman under Section 9 of this Act, such purchaser
(by the last day of the month following the calendar month in
which such purchaser makes any payment upon the selling price
of such property) shall, except as hereinafter provided in
this Section, file a return with the Department and pay the
tax upon that portion of the selling price so paid by the
purchaser during the preceding calendar month. Such return
shall be filed on a form prescribed by the Department and
shall contain such information as the Department may
reasonably require.
When a purchaser pays a tax herein imposed directly to
the Department, the Department (upon request therefor from
such purchaser) shall issue an appropriate receipt to such
purchaser showing that he has paid such tax to the
Department. Such receipt shall be sufficient to relieve the
purchaser from further liability from the tax to which such
receipt may refer.
A user who is liable to pay Service Use Tax directly to
the Department only occasionally and not on a frequently
recurring basis, and who is not required to file returns
within the Department as a serviceman under Section 9 of this
Act, or as a serviceman under the "Service Occupation Tax
Act", or as a retailer or user under the "Use Tax Act", or as
a retailer under the "Retailers' Occupation Tax Act", need
not register with the Department. However, if such a user has
a frequently recurring direct Service Use Tax liability to
pay to the Department, such user shall be required to
register with the Department on forms prescribed by the
Department and to obtain and display a certificate of
registration from the Department. In that event, all of the
provisions of Section 9 of this Act concerning the filing of
regular monthly, quarterly or annual tax returns and all of
the provisions of Section 2a of the "Retailers' Occupation
Tax Act" concerning the requirements for registrants to post
bond or other security with the Department, as the provisions
of such sections now exist or may hereafter be amended, shall
apply to such users to the same extent as if such provisions
were included herein.
(Source: P.A. 85-1135.)
(35 ILCS 110/15) (from Ch. 120, par. 439.45)
Sec. 15. When the amount due is under $300, any person
subject to the provisions hereof who fails to file a return,
or who violates any other provision of Section 9 or Section
10 hereof, or who fails to keep books and records as required
herein, or who files a fraudulent return, or who wilfully
violates any Rule or Regulation of the Department for the
administration and enforcement of the provisions hereof, or
any officer or agent of a corporation, or manager, member, or
agent of a limited liability company, subject hereto who
signs a fraudulent return filed on behalf of such corporation
or limited liability company, or any accountant or other
agent who knowingly enters false information on the return of
any taxpayer under this Act, or any person who violates any
of the provisions of Sections 3 and 5 hereof, or any
purchaser who obtains a registration number or resale number
from the Department through misrepresentation, or who
represents to a seller that such purchaser has a registration
number or a resale number from the Department when he knows
that he does not, or who uses his registration number or
resale number to make a seller believe that he is buying
tangible personal property for resale when such purchaser in
fact knows that this is not the case, is guilty of a Class 4
felony.
Any person who violates any provision of Section 6
hereof, or who engages in the business of making sales of
service after his Certificate of Registration under this Act
has been revoked in accordance with Section 12 of this Act,
is guilty of a Class 4 felony. Each day any such person is
engaged in business in violation of Section 6, or after his
Certificate of Registration under this Act has been revoked,
constitutes a separate offense.
When the amount due is under $300, any person who accepts
money that is due to the Department under this Act from a
taxpayer for the purpose of acting as the taxpayer's agent to
make the payment to the Department, but who fails to remit
such payment to the Department when due is guilty of a Class
4 felony. Any such person who purports to make such payment
by issuing or delivering a check or other order upon a real
or fictitious depository for the payment of money, knowing
that it will not be paid by the depository, shall be guilty
of a deceptive practice in violation of Section 17-1 of the
Criminal Code of 1961, as amended.
When the amount due is $300 or more, any person subject
to the provisions hereof who fails to file a return, or who
violates any other provision of Section 9 or Section 10
hereof, or who fails to keep books and records as required
herein or who files a fraudulent return, or who willfully
violates any rule or regulation of the Department for the
administration and enforcement of the provisions hereof, or
any officer or agent of a corporation, or manager, member, or
agent of a limited liability company, subject hereto who
signs a fraudulent return filed on behalf of such corporation
or limited liability company, or any accountant or other
agent who knowingly enters false information on the return of
any taxpayer under this Act, or any person who violates any
of the provisions of Sections 3 and 5 hereof, or any
purchaser who obtains a registration number or resale number
from the Department through misrepresentation, or who
represents to a seller that such purchaser has a registration
number or a resale number from the Department when he knows
that he does not, or who uses his registration number or
resale number to make a seller believe that he is buying
tangible personal property for resale when such purchaser in
fact knows that this is not the case, is guilty of a Class 3
felony.
When the amount due is $300 or more, any person who
accepts money that is due to the Department under this Act
from a taxpayer for the purpose of acting as the taxpayer's
agent to make the payment to the Department, but who fails to
remit such payment to the Department when due is guilty of a
Class 3 felony. Any such person who purports to make such
payment by issuing or delivering a check or other order upon
a real or fictitious depository for the payment of money,
knowing that it will not be paid by the depository, shall be
guilty of a deceptive practice in violation of Section 17-1
of the Criminal Code of 1961, as amended.
Any serviceman who collects or attempts to collect
Service Use Tax measured by receipts or selling prices which
such serviceman knows are not subject to Service Use Tax, or
any serviceman who knowingly over-collects or attempts to
over-collect Service Use Tax in a transaction which is
subject to the tax that is imposed by this Act, shall be
guilty of a Class 4 felony for each offense. This paragraph
does not apply to an amount collected by the serviceman as
Service Use Tax on receipts or selling prices which are
subject to tax under this Act as long as such collection is
made in compliance with the tax collection brackets
prescribed by the Department in its Rules and Regulations.
Any taxpayer or agent of a taxpayer who with the intent
to defraud purports to make a payment due to the Department
by issuing or delivering a check or other order upon a real
or fictitious depository for the payment of money, knowing
that it will not be paid by the depository, shall be guilty
of a deceptive practice in violation of Section 17-1 of the
Criminal Code of 1961, as amended.
A prosecution for any Act in violation of this Section
may be commenced at any time within 3 years of the commission
of that Act.
This Section does not apply if the violation in a
particular case also constitutes a criminal violation of the
Retailers' Occupation Tax Act, the Use Tax Act or the Service
Occupation Tax Act.
(Source: P.A. 90-655, eff. 7-30-98.)
Section 125. The Service Occupation Tax Act is amended
by re-enacting Sections 2, 3, 3-5, 3-10, 3-15, 3-20, 3-25,
3-30, 3-35, 3-40, 3-45, 3-50, 9, 13, and 15 as follows:
(35 ILCS 115/2) (from Ch. 120, par. 439.102)
Sec. 2. "Transfer" means any transfer of the title to
property or of the ownership of property whether or not the
transferor retains title as security for the payment of
amounts due him from the transferee.
"Cost Price" means the consideration paid by the
serviceman for a purchase valued in money, whether paid in
money or otherwise, including cash, credits and services, and
shall be determined without any deduction on account of the
supplier's cost of the property sold or on account of any
other expense incurred by the supplier. When a serviceman
contracts out part or all of the services required in his
sale of service, it shall be presumed that the cost price to
the serviceman of the property transferred to him by his or
her subcontractor is equal to 50% of the subcontractor's
charges to the serviceman in the absence of proof of the
consideration paid by the subcontractor for the purchase of
such property.
"Department" means the Department of Revenue.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint venture, public or
private corporation, limited liability company, and any
receiver, executor, trustee, guardian or other representative
appointed by order of any court.
"Sale of Service" means any transaction except:
(a) A retail sale of tangible personal property taxable
under the Retailers' Occupation Tax Act or under the Use Tax
Act.
(b) A sale of tangible personal property for the purpose
of resale made in compliance with Section 2c of the
Retailers' Occupation Tax Act.
(c) Except as hereinafter provided, a sale or transfer
of tangible personal property as an incident to the rendering
of service for or by any governmental body or for or by any
corporation, society, association, foundation or institution
organized and operated exclusively for charitable, religious
or educational purposes or any not-for-profit corporation,
society, association, foundation, institution or organization
which has no compensated officers or employees and which is
organized and operated primarily for the recreation of
persons 55 years of age or older. A limited liability company
may qualify for the exemption under this paragraph only if
the limited liability company is organized and operated
exclusively for educational purposes.
(d) A sale or transfer of tangible personal property as
an incident to the rendering of service for interstate
carriers for hire for use as rolling stock moving in
interstate commerce or lessors under leases of one year or
longer, executed or in effect at the time of purchase, to
interstate carriers for hire for use as rolling stock moving
in interstate commerce, and equipment operated by a
telecommunications provider, licensed as a common carrier by
the Federal Communications Commission, which is permanently
installed in or affixed to aircraft moving in interstate
commerce.
(d-1) A sale or transfer of tangible personal property
as an incident to the rendering of service for owners,
lessors or shippers of tangible personal property which is
utilized by interstate carriers for hire for use as rolling
stock moving in interstate commerce, and equipment operated
by a telecommunications provider, licensed as a common
carrier by the Federal Communications Commission, which is
permanently installed in or affixed to aircraft moving in
interstate commerce.
(d-2) The repairing, reconditioning or remodeling, for a
common carrier by rail, of tangible personal property which
belongs to such carrier for hire, and as to which such
carrier receives the physical possession of the repaired,
reconditioned or remodeled item of tangible personal property
in Illinois, and which such carrier transports, or shares
with another common carrier in the transportation of such
property, out of Illinois on a standard uniform bill of
lading showing the person who repaired, reconditioned or
remodeled the property as the shipper or consignor of such
property to a destination outside Illinois, for use outside
Illinois.
(d-3) A sale or transfer of tangible personal property
which is produced by the seller thereof on special order in
such a way as to have made the applicable tax the Service
Occupation Tax or the Service Use Tax, rather than the
Retailers' Occupation Tax or the Use Tax, for an interstate
carrier by rail which receives the physical possession of
such property in Illinois, and which transports such
property, or shares with another common carrier in the
transportation of such property, out of Illinois on a
standard uniform bill of lading showing the seller of the
property as the shipper or consignor of such property to a
destination outside Illinois, for use outside Illinois.
(d-4) Until January 1, 1997, a sale, by a registered
serviceman paying tax under this Act to the Department, of
special order printed materials delivered outside Illinois
and which are not returned to this State, if delivery is made
by the seller or agent of the seller, including an agent who
causes the product to be delivered outside Illinois by a
common carrier or the U.S. postal service.
(e) A sale or transfer of machinery and equipment used
primarily in the process of the manufacturing or assembling,
either in an existing, an expanded or a new manufacturing
facility, of tangible personal property for wholesale or
retail sale or lease, whether such sale or lease is made
directly by the manufacturer or by some other person, whether
the materials used in the process are owned by the
manufacturer or some other person, or whether such sale or
lease is made apart from or as an incident to the seller's
engaging in a service occupation and the applicable tax is a
Service Occupation Tax or Service Use Tax, rather than
Retailers' Occupation Tax or Use Tax.
(f) The sale or transfer of distillation machinery and
equipment, sold as a unit or kit and assembled or installed
by the retailer, which machinery and equipment is certified
by the user to be used only for the production of ethyl
alcohol that will be used for consumption as motor fuel or as
a component of motor fuel for the personal use of such user
and not subject to sale or resale.
(g) At the election of any serviceman not required to be
otherwise registered as a retailer under Section 2a of the
Retailers' Occupation Tax Act, made for each fiscal year
sales of service in which the aggregate annual cost price of
tangible personal property transferred as an incident to the
sales of service is less than 35% (75% in the case of
servicemen transferring prescription drugs or servicemen
engaged in graphic arts production) of the aggregate annual
total gross receipts from all sales of service. The purchase
of such tangible personal property by the serviceman shall be
subject to tax under the Retailers' Occupation Tax Act and
the Use Tax Act. However, if a primary serviceman who has
made the election described in this paragraph subcontracts
service work to a secondary serviceman who has also made the
election described in this paragraph, the primary serviceman
does not incur a Use Tax liability if the secondary
serviceman (i) has paid or will pay Use Tax on his or her
cost price of any tangible personal property transferred to
the primary serviceman and (ii) certifies that fact in
writing to the primary serviceman.
Tangible personal property transferred incident to the
completion of a maintenance agreement is exempt from the tax
imposed pursuant to this Act.
Exemption (e) also includes machinery and equipment used
in the general maintenance or repair of such exempt machinery
and equipment or for in-house manufacture of exempt machinery
and equipment. For the purposes of exemption (e), each of
these terms shall have the following meanings: (1)
"manufacturing process" shall mean the production of any
article of tangible personal property, whether such article
is a finished product or an article for use in the process of
manufacturing or assembling a different article of tangible
personal property, by procedures commonly regarded as
manufacturing, processing, fabricating, or refining which
changes some existing material or materials into a material
with a different form, use or name. In relation to a
recognized integrated business composed of a series of
operations which collectively constitute manufacturing, or
individually constitute manufacturing operations, the
manufacturing process shall be deemed to commence with the
first operation or stage of production in the series, and
shall not be deemed to end until the completion of the final
product in the last operation or stage of production in the
series; and further for purposes of exemption (e),
photoprocessing is deemed to be a manufacturing process of
tangible personal property for wholesale or retail sale; (2)
"assembling process" shall mean the production of any article
of tangible personal property, whether such article is a
finished product or an article for use in the process of
manufacturing or assembling a different article of tangible
personal property, by the combination of existing materials
in a manner commonly regarded as assembling which results in
a material of a different form, use or name; (3) "machinery"
shall mean major mechanical machines or major components of
such machines contributing to a manufacturing or assembling
process; and (4) "equipment" shall include any independent
device or tool separate from any machinery but essential to
an integrated manufacturing or assembly process; including
computers used primarily in operating exempt machinery and
equipment in a computer assisted design, computer assisted
manufacturing (CAD/CAM) system; or any subunit or assembly
comprising a component of any machinery or auxiliary, adjunct
or attachment parts of machinery, such as tools, dies, jigs,
fixtures, patterns and molds; or any parts which require
periodic replacement in the course of normal operation; but
shall not include hand tools. The purchaser of such machinery
and equipment who has an active resale registration number
shall furnish such number to the seller at the time of
purchase. The purchaser of such machinery and equipment and
tools without an active resale registration number shall
furnish to the seller a certificate of exemption for each
transaction stating facts establishing the exemption for that
transaction, which certificate shall be available to the
Department for inspection or audit.
The rolling stock exemption applies to rolling stock used
by an interstate carrier for hire, even just between points
in Illinois, if such rolling stock transports, for hire,
persons whose journeys or property whose shipments originate
or terminate outside Illinois.
Any informal rulings, opinions or letters issued by the
Department in response to an inquiry or request for any
opinion from any person regarding the coverage and
applicability of exemption (e) to specific devices shall be
published, maintained as a public record, and made available
for public inspection and copying. If the informal ruling,
opinion or letter contains trade secrets or other
confidential information, where possible the Department shall
delete such information prior to publication. Whenever such
informal rulings, opinions, or letters contain any policy of
general applicability, the Department shall formulate and
adopt such policy as a rule in accordance with the provisions
of the Illinois Administrative Procedure Act.
On and after July 1, 1987, no entity otherwise eligible
under exemption (c) of this Section shall make tax free
purchases unless it has an active exemption identification
number issued by the Department.
"Serviceman" means any person who is engaged in the
occupation of making sales of service.
"Sale at Retail" means "sale at retail" as defined in the
Retailers' Occupation Tax Act.
"Supplier" means any person who makes sales of tangible
personal property to servicemen for the purpose of resale as
an incident to a sale of service.
(Source: P.A. 88-480; 88-505; 88-526; 88-547; 88-670, eff.
12-2-94; 89-675, eff. 8-14-96.)
(35 ILCS 115/3) (from Ch. 120, par. 439.103)
Sec. 3. Tax imposed. A tax is imposed upon all persons
engaged in the business of making sales of service ( referred
to as "servicemen") on all tangible personal property
transferred as an incident of a sale of service, including
computer software, and including photographs, negatives, and
positives that are the product of photoprocessing, but not
including products of photoprocessing produced for use in
motion pictures for public commercial exhibition.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475.)
(35 ILCS 115/3-5) (from Ch. 120, par. 439.103-5)
Sec. 3-5. Exemptions. The following tangible personal
property is exempt from the tax imposed by this Act:
(1) Personal property sold by a corporation, society,
association, foundation, institution, or organization, other
than a limited liability company, that is organized and
operated as a not-for-profit service enterprise for the
benefit of persons 65 years of age or older if the personal
property was not purchased by the enterprise for the purpose
of resale by the enterprise.
(2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
(3) Personal property purchased by any not-for-profit
music or dramatic arts organization that establishes, by
proof required by the Department by rule, that it has
received an exemption under Section 501(c)(3) of the
Internal Revenue Code and that is organized and operated for
the presentation of live public performances of musical or
theatrical works on a regular basis.
(4) Legal tender, currency, medallions, or gold or
silver coinage issued by the State of Illinois, the
government of the United States of America, or the government
of any foreign country, and bullion.
(5) Graphic arts machinery and equipment, including
repair and replacement parts, both new and used, and
including that manufactured on special order or purchased for
lease, certified by the purchaser to be used primarily for
graphic arts production.
(6) Personal property sold by a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for production agriculture
or State or federal agricultural programs, including
individual replacement parts for the machinery and equipment,
including machinery and equipment purchased for lease, and
including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required
to be registered under Section 3-809 of the Illinois Vehicle
Code, but excluding other motor vehicles required to be
registered under the Illinois Vehicle Code. Horticultural
polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and
equipment under this item (7). Agricultural chemical tender
tanks and dry boxes shall include units sold separately from
a motor vehicle required to be licensed and units sold
mounted on a motor vehicle required to be licensed if the
selling price of the tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders. Precision farming equipment includes,
but is not limited to, soil testing sensors, computers,
monitors, software, global positioning and mapping systems,
and other such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in
the computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not
limited to, the collection, monitoring, and correlation of
animal and crop data for the purpose of formulating animal
diets and agricultural chemicals. This item (7) is exempt
from the provisions of Section 3-75.
(8) Fuel and petroleum products sold to or used by an
air common carrier, certified by the carrier to be used for
consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight destined for
or returning from a location or locations outside the United
States without regard to previous or subsequent domestic
stopovers.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption
of food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
(10) Oil field exploration, drilling, and production
equipment, including (i) rigs and parts of rigs, rotary rigs,
cable tool rigs, and workover rigs, (ii) pipe and tubular
goods, including casing and drill strings, (iii) pumps and
pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(11) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including
that manufactured on special order, certified by the
purchaser to be used primarily for photoprocessing, and
including photoprocessing machinery and equipment purchased
for lease.
(12) Coal exploration, mining, offhighway hauling,
processing, maintenance, and reclamation equipment, including
replacement parts and equipment, and including equipment
purchased for lease, but excluding motor vehicles required to
be registered under the Illinois Vehicle Code.
(13) Food for human consumption that is to be consumed
off the premises where it is sold (other than alcoholic
beverages, soft drinks and food that has been prepared for
immediate consumption) and prescription and non-prescription
medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics,
for human use, when purchased for use by a person receiving
medical assistance under Article 5 of the Illinois Public Aid
Code who resides in a licensed long-term care facility, as
defined in the Nursing Home Care Act.
(14) Semen used for artificial insemination of livestock
for direct agricultural production.
(15) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes.
(16) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor
who leases the equipment, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act.
(17) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time of the purchase, to a governmental body
that has been issued an active tax exemption identification
number by the Department under Section 1g of the Retailers'
Occupation Tax Act.
(18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally
declared disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to
a corporation, society, association, foundation, or
institution that has been issued a sales tax exemption
identification number by the Department that assists victims
of the disaster who reside within the declared disaster area.
(19) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including but not limited to municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities
located in the declared disaster area within 6 months after
the disaster.
(Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-552,
eff. 12-12-97; 90-605, eff. 6-30-98.)
(35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
Sec. 3-10. Rate of tax. Unless otherwise provided in
this Section, the tax imposed by this Act is at the rate of
6.25% of the "selling price", as defined in Section 2 of the
Service Use Tax Act, of the tangible personal property. For
the purpose of computing this tax, in no event shall the
"selling price" be less than the cost price to the serviceman
of the tangible personal property transferred. The selling
price of each item of tangible personal property transferred
as an incident of a sale of service may be shown as a
distinct and separate item on the serviceman's billing to the
service customer. If the selling price is not so shown, the
selling price of the tangible personal property is deemed to
be 50% of the serviceman's entire billing to the service
customer. When, however, a serviceman contracts to design,
develop, and produce special order machinery or equipment,
the tax imposed by this Act shall be based on the
serviceman's cost price of the tangible personal property
transferred incident to the completion of the contract.
With respect to gasohol, as defined in the Use Tax Act,
the tax imposed by this Act shall apply to 70% of the cost
price of property transferred as an incident to the sale of
service on or after January 1, 1990, and before July 1, 2003,
and to 100% of the cost price thereafter.
At the election of any registered serviceman made for
each fiscal year, sales of service in which the aggregate
annual cost price of tangible personal property transferred
as an incident to the sales of service is less than 35%, or
75% in the case of servicemen transferring prescription drugs
or servicemen engaged in graphic arts production, of the
aggregate annual total gross receipts from all sales of
service, the tax imposed by this Act shall be based on the
serviceman's cost price of the tangible personal property
transferred incident to the sale of those services.
The tax shall be imposed at the rate of 1% on food
prepared for immediate consumption and transferred incident
to a sale of service subject to this Act or the Service
Occupation Tax Act by an entity licensed under the Hospital
Licensing Act or the Nursing Home Care Act. The tax shall
also be imposed at the rate of 1% on food for human
consumption that is to be consumed off the premises where it
is sold (other than alcoholic beverages, soft drinks, and
food that has been prepared for immediate consumption and is
not otherwise included in this paragraph) and prescription
and nonprescription medicines, drugs, medical appliances,
modifications to a motor vehicle for the purpose of rendering
it usable by a disabled person, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use. For the purposes of this Section, the term "soft
drinks" means any complete, finished, ready-to-use,
non-alcoholic drink, whether carbonated or not, including but
not limited to soda water, cola, fruit juice, vegetable
juice, carbonated water, and all other preparations commonly
known as soft drinks of whatever kind or description that are
contained in any closed or sealed can, carton, or container,
regardless of size. "Soft drinks" does not include coffee,
tea, non-carbonated water, infant formula, milk or milk
products as defined in the Grade A Pasteurized Milk and Milk
Products Act, or drinks containing 50% or more natural fruit
or vegetable juice.
Notwithstanding any other provisions of this Act, "food
for human consumption that is to be consumed off the premises
where it is sold" includes all food sold through a vending
machine, except soft drinks and food products that are
dispensed hot from a vending machine, regardless of the
location of the vending machine.
(Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
6-30-98; 90-606, eff. 6-30-98.)
(35 ILCS 115/3-15) (from Ch. 120, par. 439.103-15)
Sec. 3-15. Photoprocessing. For purposes of the tax
imposed on photographs, negatives, and positives by this Act,
"photoprocessing" includes, but is not limited to, developing
films, positives, and negatives, and transparencies, and
tinting, coloring, making, and enlarging prints.
Photoprocessing does not include color separation,
typesetting, and platemaking by photographic means in the
graphic arts industry and does not include any procedure,
process, or activity connected with the creation of the
images on the film from which the negatives, positives, or
photographs are derived. The charge for in-house
photoprocessing may not be less than the photoprocessor's
cost price of materials. In transactions in which products
of photoprocessing are sold in conjunction with other
services, if a charge for the photoprocessing component is
not separately stated, tax is imposed on 50% of the entire
selling price unless the sale is made by a professional
photographer, in which case tax is imposed on 10% of the
entire selling price.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475.)
(35 ILCS 115/3-20) (from Ch. 120, par. 439.103-20)
Sec. 3-20. Bullion. For purposes of the exemption
pertaining to bullion, "bullion" means gold, silver, or
platinum in a bulk state with a purity of not less than 980
parts per 1,000.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475.)
(35 ILCS 115/3-25) (from Ch. 120, par. 439.103-25)
Sec. 3-25. Computer software. For the purposes of this
Act, "computer software" means a set of statements, data, or
instructions to be used directly or indirectly in a computer
in order to bring about a certain result in any form in which
those statements, data, or instructions may be embodied,
transmitted, or fixed, by any method now known or hereafter
developed, regardless of whether the statements, data, or
instructions are capable of being perceived by or
communicated to humans, and includes prewritten or canned
software that is held for repeated sale or lease, and all
associated documentation and materials, if any, whether
contained on magnetic tapes, discs, cards, or other devices
or media, but does not include software that is adapted to
specific individualized requirements of a purchaser,
custom-made and modified software designed for a particular
or limited use by a purchaser, or software used to operate
exempt machinery and equipment used in the process of
manufacturing or assembling tangible personal property for
wholesale or retail sale or lease.
For the purposes of this Act, computer software shall be
considered to be tangible personal property.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475.)
(35 ILCS 115/3-30) (from Ch. 120, par. 439.103-30)
Sec. 3-30. Graphic arts production. For purposes of this
Act, "graphic arts production" means printing by one or more
of the common processes or graphic arts production services
as those processes and services are defined in Major Group 27
of the U.S. Standard Industrial Classification Manual.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475.)
(35 ILCS 115/3-35) (from Ch. 120, par. 439.103-35)
Sec. 3-35. Production agriculture. For purposes of this
Act, "production agriculture" means the raising of or the
propagation of livestock; crops for sale for human
consumption; crops for livestock consumption; and production
seed stock grown for the propagation of feed grains and the
husbandry of animals or for the purpose of providing a food
product, including the husbandry of blood stock as a main
source of providing a food product. "Production agriculture"
also means animal husbandry, floriculture, aquaculture,
horticulture, and viticulture.
(Source: P.A. 89-220, eff. 1-1-96.)
(35 ILCS 115/3-40) (from Ch. 120, par. 439.103-40)
Sec. 3-40. Collection. The tax imposed by this Act
shall be paid to the Department by any serviceman
transferring tangible personal property as an incident to a
sale of service taxable under this Act. If a serviceman has
paid Service Occupation Tax to his or her supplier based upon
the cost price of tangible personal property before January
1, 1990, or in error on or after January 1, 1990, the
serviceman, without filing any formal claims with the
Department, shall be allowed to take credit against his or
her Service Occupation Tax liability based upon the selling
price of that property transferred in the course of providing
service to the extent of the amount of the tax so paid.
If any serviceman collects an amount (however designated)
that purports to reimburse the serviceman for Service
Occupation Tax liability measured by receipts or selling
prices that are not subject to Service Occupation Tax, or if
any serviceman, in collecting an amount (however designated)
that purports to reimburse the serviceman for Service
Occupation Tax liability measured by receipts or selling
prices that are subject to tax under this Act, collects more
from the purchaser than the serviceman's Service Occupation
Tax liability in the transaction, the purchaser shall have a
legal right to claim a refund of that amount from the
serviceman. If, however, that amount is not refunded to the
purchaser by a serviceman for any reason, the supplier or
serviceman is liable to pay that amount to the Department.
This paragraph does not apply to an amount collected by the
supplier as Service Occupation Tax, nor to an amount
collected by the serviceman as reimbursement for the
serviceman's Service Occupation Tax liability on receipts or
cost prices that are subject to tax under this Act, as long
as the collection is made in compliance with the tax
collection brackets prescribed by the Department in its rules
and regulations.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475.)
(35 ILCS 115/3-45) (from Ch. 120, par. 439.103-45)
Sec. 3-45. Interstate commerce exemption. No tax is
imposed under this Act upon the privilege of engaging in a
business in interstate commerce or otherwise when the
business may not, under the Constitution and statutes of the
United States, be made the subject of taxation by this State.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475.)
(35 ILCS 115/3-50) (from Ch. 120, par. 439.103-50)
Sec. 3-50. Liability because of amendatory Act.
Revisions in Section 3 (now Sections 3 through 3-50) by
Public Act 85-1135 do not affect tax liability that arose
before January 1, 1990.
(Source: P.A. 86-44; 86-244; 86-252; 86-820; 86-905; 86-928;
86-1028; 86-1475.)
(35 ILCS 115/9) (from Ch. 120, par. 439.109)
Sec. 9. Each serviceman required or authorized to
collect the tax herein imposed shall pay to the Department
the amount of such tax at the time when he is required to
file his return for the period during which such tax was
collectible, less a discount of 2.1% prior to January 1,
1990, and 1.75% on and after January 1, 1990, or $5 per
calendar year, whichever is greater, which is allowed to
reimburse the serviceman for expenses incurred in collecting
the tax, keeping records, preparing and filing returns,
remitting the tax and supplying data to the Department on
request.
Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof,
is extended beyond the close of the period for which the
return is filed, the serviceman, in collecting the tax may
collect, for each tax return period, only the tax applicable
to the part of the selling price actually received during
such tax return period.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar
month in accordance with reasonable rules and regulations to
be promulgated by the Department of Revenue. Such return
shall be filed on a form prescribed by the Department and
shall contain such information as the Department may
reasonably require.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter.
The taxpayer shall also file a return with the Department for
each of the first two months of each calendar quarter, on or
before the twentieth day of the following calendar month,
stating:
1. The name of the seller;
2. The address of the principal place of business
from which he engages in business as a serviceman in this
State;
3. The total amount of taxable receipts received by
him during the preceding calendar month, including
receipts from charge and time sales, but less all
deductions allowed by law;
4. The amount of credit provided in Section 2d of
this Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the
Department may require.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to
be due on the return shall be deemed assessed.
A serviceman may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Service Use
Tax as provided in Section 3-70 of the Service Use Tax Act if
the purchaser provides the appropriate documentation as
required by Section 3-70 of the Service Use Tax Act. A
Manufacturer's Purchase Credit certification, accepted by a
serviceman as provided in Section 3-70 of the Service Use Tax
Act, may be used by that serviceman to satisfy Service
Occupation Tax liability in the amount claimed in the
certification, not to exceed 6.25% of the receipts subject to
tax from a qualifying purchase.
If the serviceman's average monthly tax liability to the
Department does not exceed $200, the Department may authorize
his returns to be filed on a quarter annual basis, with the
return for January, February and March of a given year being
due by April 20 of such year; with the return for April, May
and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given
year being due by October 20 of such year, and with the
return for October, November and December of a given year
being due by January 20 of the following year.
If the serviceman's average monthly tax liability to the
Department does not exceed $50, the Department may authorize
his returns to be filed on an annual basis, with the return
for a given year being due by January 20 of the following
year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act
concerning the time within which a serviceman may file his
return, in the case of any serviceman who ceases to engage in
a kind of business which makes him responsible for filing
returns under this Act, such serviceman shall file a final
return under this Act with the Department not more than 1
month after discontinuing such business.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who
has an average monthly tax liability of $100,000 or more
shall make all payments required by rules of the Department
by electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. The term "average
monthly tax liability" means the sum of the taxpayer's
liabilities under this Act, and under all other State and
local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers
required to make payments by electronic funds transfer shall
make those payments for a minimum of one year beginning on
October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic
funds transfer and any taxpayers authorized to voluntarily
make payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Where a serviceman collects the tax with respect to the
selling price of tangible personal property which he sells
and the purchaser thereafter returns such tangible personal
property and the serviceman refunds the selling price thereof
to the purchaser, such serviceman shall also refund, to the
purchaser, the tax so collected from the purchaser. When
filing his return for the period in which he refunds such tax
to the purchaser, the serviceman may deduct the amount of the
tax so refunded by him to the purchaser from any other
Service Occupation Tax, Service Use Tax, Retailers'
Occupation Tax or Use Tax which such serviceman may be
required to pay or remit to the Department, as shown by such
return, provided that the amount of the tax to be deducted
shall previously have been remitted to the Department by such
serviceman. If the serviceman shall not previously have
remitted the amount of such tax to the Department, he shall
be entitled to no deduction hereunder upon refunding such tax
to the purchaser.
If experience indicates such action to be practicable,
the Department may prescribe and furnish a combination or
joint return which will enable servicemen, who are required
to file returns hereunder and also under the Retailers'
Occupation Tax Act, the Use Tax Act or the Service Use Tax
Act, to furnish all the return information required by all
said Acts on the one form.
Where the serviceman has more than one business
registered with the Department under separate registrations
hereunder, such serviceman shall file separate returns for
each registered business.
Beginning January 1, 1990, each month the Department
shall pay into the Local Government Tax Fund the revenue
realized for the preceding month from the 1% tax on sales of
food for human consumption which is to be consumed off the
premises where it is sold (other than alcoholic beverages,
soft drinks and food which has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances and insulin, urine testing
materials, syringes and needles used by diabetics.
Beginning January 1, 1990, each month the Department
shall pay into the County and Mass Transit District Fund 4%
of the revenue realized for the preceding month from the
6.25% general rate.
Beginning January 1, 1990, each month the Department
shall pay into the Local Government Tax Fund 16% of the
revenue realized for the preceding month from the 6.25%
general rate on transfers of tangible personal property.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into
the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
and on and after July 1, 1989, 3.8% thereof shall be paid
into the Build Illinois Fund; provided, however, that if in
any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
as the case may be, of the moneys received by the Department
and required to be paid into the Build Illinois Fund pursuant
to Section 3 of the Retailers' Occupation Tax Act, Section 9
of the Use Tax Act, Section 9 of the Service Use Tax Act, and
Section 9 of the Service Occupation Tax Act, such Acts being
hereinafter called the "Tax Acts" and such aggregate of 2.2%
or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred
to the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount
(as defined in Section 3 of the Retailers' Occupation Tax
Act), an amount equal to the difference shall be immediately
paid into the Build Illinois Fund from other moneys received
by the Department pursuant to the Tax Acts; and further
provided, that if on the last business day of any month the
sum of (1) the Tax Act Amount required to be deposited into
the Build Illinois Account in the Build Illinois Fund during
such month and (2) the amount transferred during such month
to the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall have been less than 1/12 of the Annual
Specified Amount, an amount equal to the difference shall be
immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts;
and, further provided, that in no event shall the payments
required under the preceding proviso result in aggregate
payments into the Build Illinois Fund pursuant to this clause
(b) for any fiscal year in excess of the greater of (i) the
Tax Act Amount or (ii) the Annual Specified Amount for such
fiscal year; and, further provided, that the amounts payable
into the Build Illinois Fund under this clause (b) shall be
payable only until such time as the aggregate amount on
deposit under each trust indenture securing Bonds issued and
outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and
on any Bonds expected to be issued thereafter and all fees
and costs payable with respect thereto, all as certified by
the Director of the Bureau of the Budget. If on the last
business day of any month in which Bonds are outstanding
pursuant to the Build Illinois Bond Act, the aggregate of the
moneys deposited in the Build Illinois Bond Account in the
Build Illinois Fund in such month shall be less than the
amount required to be transferred in such month from the
Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence
shall be deemed to constitute payments pursuant to clause (b)
of the preceding sentence and shall reduce the amount
otherwise payable for such fiscal year pursuant to clause (b)
of the preceding sentence. The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois
Fund as provided in the preceding paragraph or in any
amendment thereto hereafter enacted, the following specified
monthly installment of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority provided under Section 8.25f of the
State Finance Act, but not in excess of the sums designated
as "Total Deposit", shall be deposited in the aggregate from
collections under Section 9 of the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 9 of the Service Occupation
Tax Act, and Section 3 of the Retailers' Occupation Tax Act
into the McCormick Place Expansion Project Fund in the
specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 84,000,000
2003 89,000,000
2004 93,000,000
2005 97,000,000
2006 102,000,000
2007 and 106,000,000
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority
Act, but not after fiscal year 2029.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year,
but not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Build Illinois
Fund and the McCormick Place Expansion Project Fund pursuant
to the preceding paragraphs or in any amendment thereto
hereafter enacted, each month the Department shall pay into
the Local Government Distributive Fund 0.4% of the net
revenue realized for the preceding month from the 5% general
rate or 0.4% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate, as the case may
be, on the selling price of tangible personal property which
amount shall, subject to appropriation, be distributed as
provided in Section 2 of the State Revenue Sharing Act. No
payments or distributions pursuant to this paragraph shall be
made if the tax imposed by this Act on photoprocessing
products is declared unconstitutional, or if the proceeds
from such tax are unavailable for distribution because of
litigation.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Local Government Distributive Fund pursuant to the preceding
paragraphs or in any amendments thereto hereafter enacted,
beginning July 1, 1993, the Department shall each month pay
into the Illinois Tax Increment Fund 0.27% of 80% of the net
revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property.
Remaining moneys received by the Department pursuant to
this Act shall be paid into the General Revenue Fund of the
State Treasury.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a
statement of gross receipts as shown by the taxpayer's last
Federal income tax return. If the total receipts of the
business as reported in the Federal income tax return do not
agree with the gross receipts reported to the Department of
Revenue for the same period, the taxpayer shall attach to his
annual return a schedule showing a reconciliation of the 2
amounts and the reasons for the difference. The taxpayer's
annual return to the Department shall also disclose the cost
of goods sold by the taxpayer during the year covered by such
return, opening and closing inventories of such goods for
such year, cost of goods used from stock or taken from stock
and given away by the taxpayer during such year, pay roll
information of the taxpayer's business during such year and
any additional reasonable information which the Department
deems would be helpful in determining the accuracy of the
monthly, quarterly or annual returns filed by such taxpayer
as hereinbefore provided for in this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be
liable as follows:
(i) Until January 1, 1994, the taxpayer shall be
liable for a penalty equal to 1/6 of 1% of the tax due
from such taxpayer under this Act during the period to be
covered by the annual return for each month or fraction
of a month until such return is filed as required, the
penalty to be assessed and collected in the same manner
as any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer
shall be liable for a penalty as described in Section 3-4
of the Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person
who willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and
punished accordingly. The annual return form prescribed by
the Department shall include a warning that the person
signing the return may be liable for perjury.
The foregoing portion of this Section concerning the
filing of an annual information return shall not apply to a
serviceman who is not required to file an income tax return
with the United States Government.
As soon as possible after the first day of each month,
upon certification of the Department of Revenue, the
Comptroller shall order transferred and the Treasurer shall
transfer from the General Revenue Fund to the Motor Fuel Tax
Fund an amount equal to 1.7% of 80% of the net revenue
realized under this Act for the second preceding month;
except that this transfer shall not be made for the months
February through June, 1992.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, it shall be
permissible for manufacturers, importers and wholesalers
whose products are sold by numerous servicemen in Illinois,
and who wish to do so, to assume the responsibility for
accounting and paying to the Department all tax accruing
under this Act with respect to such sales, if the servicemen
who are affected do not make written objection to the
Department to this arrangement.
(Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-612, eff.
7-8-98.)
(35 ILCS 115/13) (from Ch. 120, par. 439.113)
Sec. 13. Any person (resident or non-resident) who
incurs tax liability under this Act as a serviceman in this
State and who removes from this State or conceals his
whereabouts, shall be deemed thereby to appoint the Secretary
of State of Illinois his agent for the service of process or
notice in any judicial or administrative proceeding under
this Act. Such process or notice shall be served by the
Department on the Secretary of State by leaving, at the
office of the Secretary of State at least 15 days before the
return day of such process or notice, a true and certified
copy thereof, and by sending to the taxpayer by registered or
certified mail, postage prepaid, a like and true certified
copy, with an endorsement thereon of the service upon said
Secretary of State, addressed to such taxpayer at his last
known address.
Service of process or notice in the manner provided for
in this Section, under the circumstances specified in this
Section, shall be of the same force and validity as if served
upon the taxpayer personally within this State. Proof of such
service upon the taxpayer in this State through the Secretary
of State as his agent and by mailing to the last known
address of the taxpayer may be made in such judicial or
administrative proceeding by the affidavit of the Director of
Revenue, or by his duly authorized representative who made
such service, with a copy of the process or notice that was
so served attached to such affidavit.
(Source: P.A. 85-1135.)
(35 ILCS 115/15) (from Ch. 120, par. 439.115)
Sec. 15. When the amount due is under $300, any person
subject to the provisions hereof who fails to file a return,
or who violates any other provision of Section 9 or Section
10 hereof, or who fails to keep books and records as required
herein, or who files a fraudulent return, or who wilfully
violates any Rule or Regulation of the Department for the
administration and enforcement of the provisions hereof, or
any officer or agent of a corporation, or manager, member, or
agent of a limited liability company, subject hereto who
signs a fraudulent return filed on behalf of such corporation
or limited liability company, or any accountant or other
agent who knowingly enters false information on the return of
any taxpayer under this Act, or any person who violates any
of the provisions of Sections 3, 5 or 7 hereof, or any
purchaser who obtains a registration number or resale number
from the Department through misrepresentation, or who
represents to a seller that such purchaser has a registration
number or a resale number from the Department when he knows
that he does not, or who uses his registration number or
resale number to make a seller believe that he is buying
tangible personal property for resale when such purchaser in
fact knows that this is not the case, is guilty of a Class 4
felony.
Any person who violates any provision of Section 6
hereof, or who engages in the business of making sales of
service after his Certificate of Registration under this Act
has been revoked in accordance with Section 12 of this Act,
is guilty of a Class 4 felony. Each day any such person is
engaged in business in violation of Section 6, or after his
Certificate of Registration under this Act has been revoked,
constitutes a separate offense.
When the amount due is under $300, any person who accepts
money that is due to the Department under this Act from a
taxpayer for the purpose of acting as the taxpayer's agent to
make the payment to the Department, but who fails to remit
such payment to the Department when due is guilty of a Class
4 felony. Any such person who purports to make such payment
by issuing or delivering a check or other order upon a real
or fictitious depository for the payment of money, knowing
that it will not be paid by the depository, shall be guilty
of a deceptive practice in violation of Section 17-1 of the
Criminal Code of 1961, as amended.
When the amount due is $300 or more, any person subject
to the provisions hereof who fails to file a return, or who
violates any other provision of Section 9 or Section 10
hereof, or who fails to keep books and records as required
herein, or who files a fraudulent return, or who wilfully
violates any rule or regulation of the Department for the
administration and enforcement of the provisions hereof, or
any officer or agent of a corporation, or manager, member, or
agent of a limited liability company, subject hereto who
signs a fraudulent return filed on behalf of such corporation
or limited liability company, or any accountant or other
agent who knowingly enters false information on the return of
any taxpayer under this Act, or any person who violates any
of the provisions of Sections 3, 5 or 7 hereof, or any
purchaser who obtains a registration number or resale number
from the Department through misrepresentation, or who
represents to a seller that such purchaser has a registration
number or a resale number from the Department when he knows
that he does not, or who uses his registration number or
resale number to make a seller believe that he is buying
tangible personal property for resale when such purchaser in
fact knows that this is not the case, is guilty of a Class 3
felony.
When the amount due is $300 or more, any person who
accepts money that is due to the Department under this Act
from a taxpayer for the purpose of acting as the taxpayer's
agent to make the payment to the Department but who fails to
remit such payment to the Department when due is guilty of a
Class 3 felony. Any such person who purports to make such
payment by issuing or delivering a check or other order upon
a real or fictitious depository for the payment of money,
knowing that it will not be paid by the depository shall be
guilty of a deceptive practice in violation of Section 17-1
of the Criminal Code of 1961, as amended.
Any serviceman who collects or attempts to collect
Service Occupation Tax, measured by receipts which such
serviceman knows are not subject to Service Occupation Tax,
or any serviceman who collects or attempts to collect an
amount (however designated) which purports to reimburse such
serviceman for Service Occupation Tax liability measured by
receipts or selling prices which such serviceman knows are
not subject to Service Occupation Tax, or any serviceman who
knowingly over-collects or attempts to over-collect Service
Occupation Tax or an amount purporting to be reimbursement
for Service Occupation Tax liability in a transaction which
is subject to the tax that is imposed by this Act, shall be
guilty of a Class 4 felony for each such offense. This
paragraph does not apply to an amount collected by the
serviceman as reimbursement for the serviceman's Service
Occupation Tax liability on receipts or selling prices which
are subject to tax under this Act, as long as such collection
is made in compliance with the tax collection brackets
prescribed by the Department in its Rules and Regulations.
A prosecution for any act in violation of this Section
may be commenced at any time within 3 years of the commission
of that act.
This Section does not apply if the violation in a
particular case also constitutes a criminal violation of the
Retailers' Occupation Tax Act or the Use Tax Act.
(Source: P.A. 88-480.)
(35 ILCS 115/439.110 rep.)
(35 ILCS 115/439.114 rep.)
Section 130. Sections 10 and 14 of the "Service
Occupation Tax Act", approved July 10, 1961, as amended, are
re-repealed.
Section 135. The Retailers' Occupation Tax Act is
amended by re-enacting Sections 2, 2-5, 2-10, 2-15, 2-20,
2-25, 2-30, 2-35, 2-40, 2-45, 2-50, 2-55, 2-60, 2-65, 3, and
5k as follows:
(35 ILCS 120/2) (from Ch. 120, par. 441)
Sec. 2. Tax imposed. A tax is imposed upon persons
engaged in the business of selling at retail tangible
personal property, including computer software, and including
photographs, negatives, and positives that are the product of
photoprocessing, but not including products of
photoprocessing produced for use in motion pictures for
public commercial exhibition.
(Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
86-928; 86-953; 86-1394; 86-1475.)
(35 ILCS 120/2-5) (from Ch. 120, par. 441-5)
Sec. 2-5. Exemptions. Gross receipts from proceeds from
the sale of the following tangible personal property are
exempt from the tax imposed by this Act:
(1) Farm chemicals.
(2) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for production agriculture
or State or federal agricultural programs, including
individual replacement parts for the machinery and equipment,
including machinery and equipment purchased for lease, and
including implements of husbandry defined in Section 1-130 of
the Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required
to be registered under Section 3-809 of the Illinois Vehicle
Code, but excluding other motor vehicles required to be
registered under the Illinois Vehicle Code. Horticultural
polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and
equipment under this item (2). Agricultural chemical tender
tanks and dry boxes shall include units sold separately from
a motor vehicle required to be licensed and units sold
mounted on a motor vehicle required to be licensed, if the
selling price of the tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters,
seeders, or spreaders. Precision farming equipment includes,
but is not limited to, soil testing sensors, computers,
monitors, software, global positioning and mapping systems,
and other such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in
the computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not
limited to, the collection, monitoring, and correlation of
animal and crop data for the purpose of formulating animal
diets and agricultural chemicals. This item (7) is exempt
from the provisions of Section 3-75.
(3) Distillation machinery and equipment, sold as a unit
or kit, assembled or installed by the retailer, certified by
the user to be used only for the production of ethyl alcohol
that will be used for consumption as motor fuel or as a
component of motor fuel for the personal use of the user, and
not subject to sale or resale.
(4) Graphic arts machinery and equipment, including
repair and replacement parts, both new and used, and
including that manufactured on special order or purchased for
lease, certified by the purchaser to be used primarily for
graphic arts production.
(5) A motor vehicle of the first division, a motor
vehicle of the second division that is a self-contained motor
vehicle designed or permanently converted to provide living
quarters for recreational, camping, or travel use, with
direct walk through access to the living quarters from the
driver's seat, or a motor vehicle of the second division that
is of the van configuration designed for the transportation
of not less than 7 nor more than 16 passengers, as defined in
Section 1-146 of the Illinois Vehicle Code, that is used for
automobile renting, as defined in the Automobile Renting
Occupation and Use Tax Act.
(6) Personal property sold by a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(7) Proceeds of that portion of the selling price of a
passenger car the sale of which is subject to the Replacement
Vehicle Tax.
(8) Personal property sold to an Illinois county fair
association for use in conducting, operating, or promoting
the county fair.
(9) Personal property sold to a not-for-profit music or
dramatic arts organization that establishes, by proof
required by the Department by rule, that it has received an
exemption under Section 501(c) (3) of the Internal Revenue
Code and that is organized and operated for the presentation
of live public performances of musical or theatrical works on
a regular basis.
(10) Personal property sold by a corporation, society,
association, foundation, institution, or organization, other
than a limited liability company, that is organized and
operated as a not-for-profit service enterprise for the
benefit of persons 65 years of age or older if the personal
property was not purchased by the enterprise for the purpose
of resale by the enterprise.
(11) Personal property sold to a governmental body, to a
corporation, society, association, foundation, or institution
organized and operated exclusively for charitable, religious,
or educational purposes, or to a not-for-profit corporation,
society, association, foundation, institution, or
organization that has no compensated officers or employees
and that is organized and operated primarily for the
recreation of persons 55 years of age or older. A limited
liability company may qualify for the exemption under this
paragraph only if the limited liability company is organized
and operated exclusively for educational purposes. On and
after July 1, 1987, however, no entity otherwise eligible for
this exemption shall make tax-free purchases unless it has an
active identification number issued by the Department.
(12) Personal property sold to interstate carriers for
hire for use as rolling stock moving in interstate commerce
or to lessors under leases of one year or longer executed or
in effect at the time of purchase by interstate carriers for
hire for use as rolling stock moving in interstate commerce
and equipment operated by a telecommunications provider,
licensed as a common carrier by the Federal Communications
Commission, which is permanently installed in or affixed to
aircraft moving in interstate commerce.
(13) Proceeds from sales to owners, lessors, or shippers
of tangible personal property that is utilized by interstate
carriers for hire for use as rolling stock moving in
interstate commerce and equipment operated by a
telecommunications provider, licensed as a common carrier by
the Federal Communications Commission, which is permanently
installed in or affixed to aircraft moving in interstate
commerce.
(14) Machinery and equipment that will be used by the
purchaser, or a lessee of the purchaser, primarily in the
process of manufacturing or assembling tangible personal
property for wholesale or retail sale or lease, whether the
sale or lease is made directly by the manufacturer or by some
other person, whether the materials used in the process are
owned by the manufacturer or some other person, or whether
the sale or lease is made apart from or as an incident to the
seller's engaging in the service occupation of producing
machines, tools, dies, jigs, patterns, gauges, or other
similar items of no commercial value on special order for a
particular purchaser.
(15) Proceeds of mandatory service charges separately
stated on customers' bills for purchase and consumption of
food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
(16) Petroleum products sold to a purchaser if the
seller is prohibited by federal law from charging tax to the
purchaser.
(17) Tangible personal property sold to a common carrier
by rail or motor that receives the physical possession of the
property in Illinois and that transports the property, or
shares with another common carrier in the transportation of
the property, out of Illinois on a standard uniform bill of
lading showing the seller of the property as the shipper or
consignor of the property to a destination outside Illinois,
for use outside Illinois.
(18) Legal tender, currency, medallions, or gold or
silver coinage issued by the State of Illinois, the
government of the United States of America, or the government
of any foreign country, and bullion.
(19) Oil field exploration, drilling, and production
equipment, including (i) rigs and parts of rigs, rotary rigs,
cable tool rigs, and workover rigs, (ii) pipe and tubular
goods, including casing and drill strings, (iii) pumps and
pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(20) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including
that manufactured on special order, certified by the
purchaser to be used primarily for photoprocessing, and
including photoprocessing machinery and equipment purchased
for lease.
(21) Coal exploration, mining, offhighway hauling,
processing, maintenance, and reclamation equipment, including
replacement parts and equipment, and including equipment
purchased for lease, but excluding motor vehicles required to
be registered under the Illinois Vehicle Code.
(22) Fuel and petroleum products sold to or used by an
air carrier, certified by the carrier to be used for
consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight destined for
or returning from a location or locations outside the United
States without regard to previous or subsequent domestic
stopovers.
(23) A transaction in which the purchase order is
received by a florist who is located outside Illinois, but
who has a florist located in Illinois deliver the property to
the purchaser or the purchaser's donee in Illinois.
(24) Fuel consumed or used in the operation of ships,
barges, or vessels that are used primarily in or for the
transportation of property or the conveyance of persons for
hire on rivers bordering on this State if the fuel is
delivered by the seller to the purchaser's barge, ship, or
vessel while it is afloat upon that bordering river.
(25) A motor vehicle sold in this State to a nonresident
even though the motor vehicle is delivered to the nonresident
in this State, if the motor vehicle is not to be titled in
this State, and if a driveaway decal permit is issued to the
motor vehicle as provided in Section 3-603 of the Illinois
Vehicle Code or if the nonresident purchaser has vehicle
registration plates to transfer to the motor vehicle upon
returning to his or her home state. The issuance of the
driveaway decal permit or having the out-of-state
registration plates to be transferred is prima facie evidence
that the motor vehicle will not be titled in this State.
(26) Semen used for artificial insemination of livestock
for direct agricultural production.
(27) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes.
(28) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor
who leases the equipment, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
this Act.
(29) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time of the purchase, to a governmental body
that has been issued an active tax exemption identification
number by the Department under Section 1g of this Act.
(30) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally
declared disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to
a corporation, society, association, foundation, or
institution that has been issued a sales tax exemption
identification number by the Department that assists victims
of the disaster who reside within the declared disaster area.
(31) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including but not limited to municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities
located in the declared disaster area within 6 months after
the disaster.
(Source: P.A. 89-16, eff. 5-30-95; 89-115, eff. 1-1-96;
89-349, eff. 8-17-95; 89-495, eff. 6-24-96; 89-496, eff.
6-25-96; 89-626, eff. 8-9-96; 90-14, eff. 7-1-97; 90-519,
eff. 6-1-98; 90-552, eff. 12-12-97; 90-605, eff. 6-30-98.)
(35 ILCS 120/2-10) (from Ch. 120, par. 441-10)
Sec. 2-10. Rate of tax. Unless otherwise provided in
this Section, the tax imposed by this Act is at the rate of
6.25% of gross receipts from sales of tangible personal
property made in the course of business.
With respect to gasohol, as defined in the Use Tax Act,
the tax imposed by this Act applies to 70% of the proceeds of
sales made on or after January 1, 1990, and before July 1,
2003, and to 100% of the proceeds of sales made thereafter.
With respect to food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances,
modifications to a motor vehicle for the purpose of rendering
it usable by a disabled person, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, the tax is imposed at the rate of 1%. For the purposes
of this Section, the term "soft drinks" means any complete,
finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including but not limited to soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or
sealed bottle, can, carton, or container, regardless of size.
"Soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in
the Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act, "food
for human consumption that is to be consumed off the premises
where it is sold" includes all food sold through a vending
machine, except soft drinks and food products that are
dispensed hot from a vending machine, regardless of the
location of the vending machine.
(Source: P.A. 89-359, eff. 8-17-95; 89-420, eff. 6-1-96;
89-463, eff. 5-31-96; 89-626, eff. 8-9-96; 90-605, eff.
6-30-98; 90-606, eff. 6-30-98.)
(35 ILCS 120/2-15) (from Ch. 120, par. 441-15)
Sec. 2-15. Photoprocessing. For purposes of the tax
imposed on photographs, negatives, and positives by this Act,
"photoprocessing" includes, but is not limited to, developing
films, positives, negatives, and transparencies, and tinting,
coloring, making, and enlarging prints. Photoprocessing does
not include color separation, typesetting, and platemaking by
photographic means in the graphic arts industry and does not
include any procedure, process, or activity connected with
the creation of the images on the film from which the
negatives, positives, or photographs are derived. The charge
for in-house photoprocessing may not be less than the
photoprocessor's cost price of materials. In transactions in
which products of photoprocessing are sold in conjunction
with other services, if a charge for the photoprocessing
component is not separately stated, tax is imposed on 50% of
the entire selling price unless the sale is made by a
professional photographer, in which case tax is imposed on
10% of the entire selling price.
(Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
86-928; 86-953; 86-1394; 86-1475.)
(35 ILCS 120/2-20) (from Ch. 120, par. 441-20)
Sec. 2-20. Bullion. For purposes of this Act, "bullion"
means gold, silver, or platinum in a bulk state with a purity
of not less than 980 parts per 1,000.
(Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
86-928; 86-953; 86-1394; 86-1475.)
(35 ILCS 120/2-25) (from Ch. 120, par. 441-25)
Sec. 2-25. Computer software. For the purposes of this
Act, "computer software" means a set of statements, data, or
instructions to be used directly or indirectly in a computer
in order to bring about a certain result in any form in which
those statements, data, or instructions may be embodied,
transmitted, or fixed, by any method now known or hereafter
developed, regardless of whether the statements, data, or
instructions are capable of being perceived by or
communicated to humans, and includes prewritten or canned
software that is held for repeated sale or lease, and all
associated documentation and materials, if any, whether
contained on magnetic tapes, discs, cards, or other devices
or media, but does not include software that is adapted to
specific individualized requirements of a purchaser,
custom-made and modified software designed for a particular
or limited use by a purchaser, or software used to operate
exempt machinery and equipment used in the process of
manufacturing or assembling tangible personal property for
wholesale or retail sale or lease.
For the purposes of this Act, computer software shall be
considered to be tangible personal property.
(Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
86-928; 86-953; 86-1394; 86-1475.)
(35 ILCS 120/2-30) (from Ch. 120, par. 441-30)
Sec. 2-30. Graphic arts production. For purposes of
this Act, "graphic arts production" means printing by one or
more of the common processes or graphic arts production
services as those processes and services are defined in Major
Group 27 of the U.S. Standard Industrial Classification
Manual.
(Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
86-928; 86-953; 86-1394; 86-1475.)
(35 ILCS 120/2-35) (from Ch. 120, par. 441-35)
Sec. 2-35. Production agriculture. For purposes of this
Act, "production agriculture" means the raising of or the
propagation of livestock; crops for sale for human
consumption; crops for livestock consumption; and production
seed stock grown for the propagation of feed grains and the
husbandry of animals or for the purpose of providing a food
product, including the husbandry of blood stock as a main
source of providing a food product. "Production agriculture"
also means animal husbandry, floriculture, aquaculture,
horticulture, and viticulture.
(Source: P.A. 89-220, eff. 1-1-96.)
(35 ILCS 120/2-40) (from Ch. 120, par. 441-40)
Sec. 2-40. Purchaser refunds. If a seller collects an
amount (however designated) that purports to reimburse the
seller for retailers' occupation tax liability measured by
receipts that are not subject to retailers' occupation tax,
or if a seller, in collecting an amount (however designated)
that purports to reimburse the seller for retailers'
occupation tax liability measured by receipts that are
subject to tax under this Act, collects more from the
purchaser than the seller's retailers' occupation tax
liability on the transaction, the purchaser shall have a
legal right to claim a refund of that amount from the seller.
If, however, that amount is not refunded to the purchaser for
any reason, the seller is liable to pay that amount to the
Department. This paragraph does not apply to an amount
collected by the seller as reimbursement for the seller's
retailers' occupation tax liability on receipts that are
subject to tax under this Act as long as the collection is
made in compliance with the tax collection brackets
prescribed by the Department in its rules and regulations.
(Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
86-928; 86-953; 86-1394; 86-1475.)
(35 ILCS 120/2-45) (from Ch. 120, par. 441-45)
Sec. 2-45. Manufacturing and assembly exemption. The
manufacturing and assembly machinery and equipment exemption
includes machinery and equipment that replaces machinery and
equipment in an existing manufacturing facility as well as
machinery and equipment that are for use in an expanded or
new manufacturing facility.
The machinery and equipment exemption also includes
machinery and equipment used in the general maintenance or
repair of exempt machinery and equipment or for in-house
manufacture of exempt machinery and equipment. For the
purposes of this exemption, terms have the following
meanings:
(1) "Manufacturing process" means the production of
an article of tangible personal property, whether the
article is a finished product or an article for use in
the process of manufacturing or assembling a different
article of tangible personal property, by a procedure
commonly regarded as manufacturing, processing,
fabricating, or refining that changes some existing
material or materials into a material with a different
form, use, or name. In relation to a recognized
integrated business composed of a series of operations
that collectively constitute manufacturing, or
individually constitute manufacturing operations, the
manufacturing process commences with the first operation
or stage of production in the series and does not end
until the completion of the final product in the last
operation or stage of production in the series. For
purposes of this exemption, photoprocessing is a
manufacturing process of tangible personal property for
wholesale or retail sale.
(2) "Assembling process" means the production of an
article of tangible personal property, whether the
article is a finished product or an article for use in
the process of manufacturing or assembling a different
article of tangible personal property, by the combination
of existing materials in a manner commonly regarded as
assembling that results in a material of a different
form, use, or name.
(3) "Machinery" means major mechanical machines or
major components of those machines contributing to a
manufacturing or assembling process.
(4) "Equipment" includes an independent device or
tool separate from machinery but essential to an
integrated manufacturing or assembly process; including
computers used primarily in operating exempt machinery
and equipment in a computer assisted design, computer
assisted manufacturing (CAD/CAM) system; any subunit or
assembly comprising a component of any machinery or
auxiliary, adjunct, or attachment parts of machinery,
such as tools, dies, jigs, fixtures, patterns, and molds;
and any parts that require periodic replacement in the
course of normal operation; but does not include hand
tools.
The manufacturing and assembling machinery and equipment
exemption includes the sale of materials to a purchaser who
produces exempted types of machinery, equipment, or tools and
who rents or leases that machinery, equipment, or tools to a
manufacturer of tangible personal property. This exemption
also includes the sale of materials to a purchaser who
manufactures those materials into an exempted type of
machinery, equipment, or tools that the purchaser uses
himself or herself in the manufacturing of tangible personal
property. The purchaser of the machinery and equipment who
has an active resale registration number shall furnish that
number to the seller at the time of purchase. A purchaser of
the machinery, equipment, and tools without an active resale
registration number shall furnish to the seller a certificate
of exemption for each transaction stating facts establishing
the exemption for that transaction, and that certificate
shall be available to the Department for inspection or audit.
Informal rulings, opinions, or letters issued by the
Department in response to an inquiry or request for an
opinion from any person regarding the coverage and
applicability of this exemption to specific devices shall be
published, maintained as a public record, and made available
for public inspection and copying. If the informal ruling,
opinion, or letter contains trade secrets or other
confidential information, where possible, the Department
shall delete that information before publication. Whenever
informal rulings, opinions, or letters contain a policy of
general applicability, the Department shall formulate and
adopt that policy as a rule in accordance with the Illinois
Administrative Procedure Act.
(Source: P.A. 88-505; 88-547.)
(35 ILCS 120/2-50) (from Ch. 120, par. 441-50)
Sec. 2-50. Rolling stock exemption. The rolling stock
exemption applies to rolling stock used by an interstate
carrier for hire, even just between points in Illinois, if
the rolling stock transports, for hire, persons whose
journeys or property whose shipments originate or terminate
outside Illinois.
(Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
86-928; 86-953; 86-1394; 86-1475.)
(35 ILCS 120/2-55) (from Ch. 120, par. 441-55)
Sec. 2-55. Serviceman transfer. Tangible personal
property purchased by a serviceman, as defined in Section 2
of the Service Occupation Tax Act, is subject to the tax
imposed by this Act when purchased for transfer by the
serviceman incidental to completion of a maintenance
agreement.
(Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
86-928; 86-953; 86-1394; 86-1475.)
(35 ILCS 120/2-60) (from Ch. 120, par. 441-60)
Sec. 2-60. Interstate commerce exemption. No tax is
imposed under this Act upon the privilege of engaging in a
business in interstate commerce or otherwise, when the
business may not, under the Constitution and statutes of the
United States, be made the subject of taxation by this State.
(Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
86-928; 86-953; 86-1394; 86-1475.)
(35 ILCS 120/2-65) (from Ch. 120, par. 441-65)
Sec. 2-65. Liability because of amendatory Act.
Revisions in Section 2 (now Sections 2 through 2-65) by
Public Act 85-1135 do not affect tax liability that arose
before January 1, 1990.
(Source: P.A. 86-44; 86-244; 86-252; 86-444; 86-820; 86-905;
86-928; 86-953; 86-1394; 86-1475.)
(35 ILCS 120/3) (from Ch. 120, par. 442)
Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person
engaged in the business of selling tangible personal property
at retail in this State during the preceding calendar month
shall file a return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his
principal place of business and the address of the
principal place of business (if that is a different
address) from which he engages in the business of selling
tangible personal property at retail in this State;
3. Total amount of receipts received by him during
the preceding calendar month or quarter, as the case may
be, from sales of tangible personal property, and from
services furnished, by him during such preceding calendar
month or quarter;
4. Total amount received by him during the
preceding calendar month or quarter on charge and time
sales of tangible personal property, and from services
furnished, by him prior to the month or quarter for which
the return is filed;
5. Deductions allowed by law;
6. Gross receipts which were received by him during
the preceding calendar month or quarter and upon the
basis of which the tax is imposed;
7. The amount of credit provided in Section 2d of
this Act;
8. The amount of tax due;
9. The signature of the taxpayer; and
10. Such other reasonable information as the
Department may require.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to
be due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.
A retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer as provided in Section
3-85 of the Use Tax Act, may be used by that retailer to
satisfy Retailers' Occupation Tax liability in the amount
claimed in the certification, not to exceed 6.25% of the
receipts subject to tax from a qualifying purchase.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter.
The taxpayer shall also file a return with the Department for
each of the first two months of each calendar quarter, on or
before the twentieth day of the following calendar month,
stating:
1. The name of the seller;
2. The address of the principal place of business
from which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of
this Act;
5. The amount of tax due; and
6. Such other reasonable information as the
Department may require.
If a total amount of less than $1 is payable, refundable
or creditable, such amount shall be disregarded if it is less
than 50 cents and shall be increased to $1 if it is 50 cents
or more.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who
has an average monthly tax liability of $100,000 or more
shall make all payments required by rules of the Department
by electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. The term "average
monthly tax liability" shall be the sum of the taxpayer's
liabilities under this Act, and under all other State and
local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers
required to make payments by electronic funds transfer shall
make those payments for a minimum of one year beginning on
October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic
funds transfer and any taxpayers authorized to voluntarily
make payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Any amount which is required to be shown or reported on
any return or other document under this Act shall, if such
amount is not a whole-dollar amount, be increased to the
nearest whole-dollar amount in any case where the fractional
part of a dollar is 50 cents or more, and decreased to the
nearest whole-dollar amount where the fractional part of a
dollar is less than 50 cents.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given
year being due by April 20 of such year; with the return for
April, May and June of a given year being due by July 20 of
such year; with the return for July, August and September of
a given year being due by October 20 of such year, and with
the return for October, November and December of a given year
being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly
or quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January
20 of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act
concerning the time within which a retailer may file his
return, in the case of any retailer who ceases to engage in a
kind of business which makes him responsible for filing
returns under this Act, such retailer shall file a final
return under this Act with the Department not more than one
month after discontinuing such business.
Where the same person has more than one business
registered with the Department under separate registrations
under this Act, such person may not file each return that is
due as a single return covering all such registered
businesses, but shall file separate returns for each such
registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered
with an agency of this State, every retailer selling this
kind of tangible personal property shall file, with the
Department, upon a form to be prescribed and supplied by the
Department, a separate return for each such item of tangible
personal property which the retailer sells, except that
where, in the same transaction, a retailer of aircraft,
watercraft, motor vehicles or trailers transfers more than
one aircraft, watercraft, motor vehicle or trailer to another
aircraft, watercraft, motor vehicle retailer or trailer
retailer for the purpose of resale, that seller for resale
may report the transfer of all aircraft, watercraft, motor
vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting
return form. For purposes of this Section, "watercraft"
means a Class 2, Class 3, or Class 4 watercraft as defined in
Section 3-2 of the Boat Registration and Safety Act, a
personal watercraft, or any boat equipped with an inboard
motor.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation
tax liability is required to be reported, and is reported, on
such transaction reporting returns and who is not otherwise
required to file monthly or quarterly returns, need not file
monthly or quarterly returns. However, those retailers shall
be required to file returns on an annual basis.
The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of The Illinois
Vehicle Code and must show the name and address of the
seller; the name and address of the purchaser; the amount of
the selling price including the amount allowed by the
retailer for traded-in property, if any; the amount allowed
by the retailer for the traded-in tangible personal property,
if any, to the extent to which Section 1 of this Act allows
an exemption for the value of traded-in property; the balance
payable after deducting such trade-in allowance from the
total selling price; the amount of tax due from the retailer
with respect to such transaction; the amount of tax collected
from the purchaser by the retailer on such transaction (or
satisfactory evidence that such tax is not due in that
particular instance, if that is claimed to be the fact); the
place and date of the sale; a sufficient identification of
the property sold; such other information as is required in
Section 5-402 of The Illinois Vehicle Code, and such other
information as the Department may reasonably require.
The transaction reporting return in the case of
watercraft or aircraft must show the name and address of the
seller; the name and address of the purchaser; the amount of
the selling price including the amount allowed by the
retailer for traded-in property, if any; the amount allowed
by the retailer for the traded-in tangible personal property,
if any, to the extent to which Section 1 of this Act allows
an exemption for the value of traded-in property; the balance
payable after deducting such trade-in allowance from the
total selling price; the amount of tax due from the retailer
with respect to such transaction; the amount of tax collected
from the purchaser by the retailer on such transaction (or
satisfactory evidence that such tax is not due in that
particular instance, if that is claimed to be the fact); the
place and date of the sale, a sufficient identification of
the property sold, and such other information as the
Department may reasonably require.
Such transaction reporting return shall be filed not
later than 20 days after the day of delivery of the item that
is being sold, but may be filed by the retailer at any time
sooner than that if he chooses to do so. The transaction
reporting return and tax remittance or proof of exemption
from the Illinois use tax may be transmitted to the
Department by way of the State agency with which, or State
officer with whom the tangible personal property must be
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a use tax
receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such
purchaser may submit to the agency with which, or State
officer with whom, he must title or register the tangible
personal property that is involved (if titling or
registration is required) in support of such purchaser's
application for an Illinois certificate or other evidence of
title or registration to such tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user
has paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment
of the tax or proof of exemption made to the Department
before the retailer is willing to take these actions and such
user has not paid the tax to the retailer, such user may
certify to the fact of such delay by the retailer and may
(upon the Department being satisfied of the truth of such
certification) transmit the information required by the
transaction reporting return and the remittance for tax or
proof of exemption directly to the Department and obtain his
tax receipt or exemption determination, in which event the
transaction reporting return and tax remittance (if a tax
payment was required) shall be credited by the Department to
the proper retailer's account with the Department, but
without the 2.1% or 1.75% discount provided for in this
Section being allowed. When the user pays the tax directly
to the Department, he shall pay the tax in the same amount
and in the same form in which it would be remitted if the tax
had been remitted to the Department by the retailer.
Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal
property returned to the seller, shall be allowed as a
deduction under subdivision 5 of his monthly or quarterly
return, as the case may be, in case the seller had
theretofore included the receipts from the sale of such
tangible personal property in a return filed by him and had
paid the tax imposed by this Act with respect to such
receipts.
Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary or treasurer or by the properly
accredited agent of such corporation.
Where the seller is a limited liability company, the
return filed on behalf of the limited liability company shall
be signed by a manager, member, or properly accredited agent
of the limited liability company.
Except as provided in this Section, the retailer filing
the return under this Section shall, at the time of filing
such return, pay to the Department the amount of tax imposed
by this Act less a discount of 2.1% prior to January 1, 1990
and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. Any prepayment made
pursuant to Section 2d of this Act shall be included in the
amount on which such 2.1% or 1.75% discount is computed. In
the case of retailers who report and pay the tax on a
transaction by transaction basis, as provided in this
Section, such discount shall be taken with each such tax
remittance instead of when such retailer files his periodic
return.
If the taxpayer's average monthly tax liability to the
Department under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Service Use Tax Act, excluding
any liability for prepaid sales tax to be remitted in
accordance with Section 2d of this Act, was $10,000 or more
during the preceding 4 complete calendar quarters, he shall
file a return with the Department each month by the 20th day
of the month next following the month during which such tax
liability is incurred and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of
the month during which such liability is incurred. If the
month during which such tax liability is incurred began prior
to January 1, 1985, each payment shall be in an amount equal
to 1/4 of the taxpayer's actual liability for the month or an
amount set by the Department not to exceed 1/4 of the average
monthly liability of the taxpayer to the Department for the
preceding 4 complete calendar quarters (excluding the month
of highest liability and the month of lowest liability in
such 4 quarter period). If the month during which such tax
liability is incurred begins on or after January 1, 1985 and
prior to January 1, 1987, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 27.5% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during
which such tax liability is incurred begins on or after
January 1, 1987 and prior to January 1, 1988, each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 26.25% of the taxpayer's liability
for the same calendar month of the preceding year. If the
month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or
begins on or after January 1, 1996, each payment shall be in
an amount equal to 22.5% of the taxpayer's actual liability
for the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during
which such tax liability is incurred begins on or after
January 1, 1989, and prior to January 1, 1996, each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 25% of the taxpayer's liability
for the same calendar month of the preceding year or 100% of
the taxpayer's actual liability for the quarter monthly
reporting period. The amount of such quarter monthly
payments shall be credited against the final tax liability of
the taxpayer's return for that month. Once applicable, the
requirement of the making of quarter monthly payments to the
Department by taxpayers having an average monthly tax
liability of $10,000 or more as determined in the manner
provided above shall continue until such taxpayer's average
monthly liability to the Department during the preceding 4
complete calendar quarters (excluding the month of highest
liability and the month of lowest liability) is less than
$9,000, or until such taxpayer's average monthly liability to
the Department as computed for each calendar quarter of the 4
preceding complete calendar quarter period is less than
$10,000. However, if a taxpayer can show the Department that
a substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below $10,000, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and
not likely to be long term. If any such quarter monthly
payment is not paid at the time or in the amount required by
this Section, then the taxpayer shall be liable for penalties
and interest on the difference between the minimum amount due
as a payment and the amount of such quarter monthly payment
actually and timely paid, except insofar as the taxpayer has
previously made payments for that month to the Department in
excess of the minimum payments previously due as provided in
this Section. The Department shall make reasonable rules and
regulations to govern the quarter monthly payment amount and
quarter monthly payment dates for taxpayers who file on other
than a calendar monthly basis.
Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average
in excess of $25,000 per month during the preceding 2
complete calendar quarters, shall file a return with the
Department as required by Section 2f and shall make payments
to the Department on or before the 7th, 15th, 22nd and last
day of the month during which such liability is incurred. If
the month during which such tax liability is incurred began
prior to the effective date of this amendatory Act of 1985,
each payment shall be in an amount not less than 22.5% of the
taxpayer's actual liability under Section 2d. If the month
during which such tax liability is incurred begins on or
after January 1, 1986, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 27.5% of the taxpayer's liability for the same
calendar month of the preceding calendar year. If the month
during which such tax liability is incurred begins on or
after January 1, 1987, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 26.25% of the taxpayer's liability for the same
calendar month of the preceding year. The amount of such
quarter monthly payments shall be credited against the final
tax liability of the taxpayer's return for that month filed
under this Section or Section 2f, as the case may be. Once
applicable, the requirement of the making of quarter monthly
payments to the Department pursuant to this paragraph shall
continue until such taxpayer's average monthly prepaid tax
collections during the preceding 2 complete calendar quarters
is $25,000 or less. If any such quarter monthly payment is
not paid at the time or in the amount required, the taxpayer
shall be liable for penalties and interest on such
difference, except insofar as the taxpayer has previously
made payments for that month in excess of the minimum
payments previously due.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment.
The credit evidenced by such credit memorandum may be
assigned by the taxpayer to a similar taxpayer under this
Act, the Use Tax Act, the Service Occupation Tax Act or the
Service Use Tax Act, in accordance with reasonable rules and
regulations to be prescribed by the Department. If no such
request is made, the taxpayer may credit such excess payment
against tax liability subsequently to be remitted to the
Department under this Act, the Use Tax Act, the Service
Occupation Tax Act or the Service Use Tax Act, in accordance
with reasonable rules and regulations prescribed by the
Department. If the Department subsequently determined that
all or any part of the credit taken was not actually due to
the taxpayer, the taxpayer's 2.1% and 1.75% vendor's discount
shall be reduced by 2.1% or 1.75% of the difference between
the credit taken and that actually due, and that taxpayer
shall be liable for penalties and interest on such
difference.
If a retailer of motor fuel is entitled to a credit under
Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
Beginning January 1, 1990, each month the Department
shall pay into the Local Government Tax Fund, a special fund
in the State treasury which is hereby created, the net
revenue realized for the preceding month from the 1% tax on
sales of food for human consumption which is to be consumed
off the premises where it is sold (other than alcoholic
beverages, soft drinks and food which has been prepared for
immediate consumption) and prescription and nonprescription
medicines, drugs, medical appliances and insulin, urine
testing materials, syringes and needles used by diabetics.
Beginning January 1, 1990, each month the Department
shall pay into the County and Mass Transit District Fund, a
special fund in the State treasury which is hereby created,
4% of the net revenue realized for the preceding month from
the 6.25% general rate.
Beginning January 1, 1990, each month the Department
shall pay into the Local Government Tax Fund 16% of the net
revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into
the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
and on and after July 1, 1989, 3.8% thereof shall be paid
into the Build Illinois Fund; provided, however, that if in
any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
as the case may be, of the moneys received by the Department
and required to be paid into the Build Illinois Fund pursuant
to this Act, Section 9 of the Use Tax Act, Section 9 of the
Service Use Tax Act, and Section 9 of the Service Occupation
Tax Act, such Acts being hereinafter called the "Tax Acts"
and such aggregate of 2.2% or 3.8%, as the case may be, of
moneys being hereinafter called the "Tax Act Amount", and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall be less than the
Annual Specified Amount (as hereinafter defined), an amount
equal to the difference shall be immediately paid into the
Build Illinois Fund from other moneys received by the
Department pursuant to the Tax Acts; the "Annual Specified
Amount" means the amounts specified below for fiscal years
1986 through 1993:
Fiscal Year Annual Specified Amount
1986 $54,800,000
1987 $76,650,000
1988 $80,480,000
1989 $88,510,000
1990 $115,330,000
1991 $145,470,000
1992 $182,730,000
1993 $206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994
and each fiscal year thereafter; and further provided, that
if on the last business day of any month the sum of (1) the
Tax Act Amount required to be deposited into the Build
Illinois Bond Account in the Build Illinois Fund during such
month and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall
have been less than 1/12 of the Annual Specified Amount, an
amount equal to the difference shall be immediately paid into
the Build Illinois Fund from other moneys received by the
Department pursuant to the Tax Acts; and, further provided,
that in no event shall the payments required under the
preceding proviso result in aggregate payments into the Build
Illinois Fund pursuant to this clause (b) for any fiscal year
in excess of the greater of (i) the Tax Act Amount or (ii)
the Annual Specified Amount for such fiscal year. The
amounts payable into the Build Illinois Fund under clause (b)
of the first sentence in this paragraph shall be payable only
until such time as the aggregate amount on deposit under each
trust indenture securing Bonds issued and outstanding
pursuant to the Build Illinois Bond Act is sufficient, taking
into account any future investment income, to fully provide,
in accordance with such indenture, for the defeasance of or
the payment of the principal of, premium, if any, and
interest on the Bonds secured by such indenture and on any
Bonds expected to be issued thereafter and all fees and costs
payable with respect thereto, all as certified by the
Director of the Bureau of the Budget. If on the last
business day of any month in which Bonds are outstanding
pursuant to the Build Illinois Bond Act, the aggregate of
moneys deposited in the Build Illinois Bond Account in the
Build Illinois Fund in such month shall be less than the
amount required to be transferred in such month from the
Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence
shall be deemed to constitute payments pursuant to clause (b)
of the first sentence of this paragraph and shall reduce the
amount otherwise payable for such fiscal year pursuant to
that clause (b). The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and
charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois
Fund as provided in the preceding paragraph or in any
amendment thereto hereafter enacted, the following specified
monthly installment of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority provided under Section 8.25f of the
State Finance Act, but not in excess of sums designated as
"Total Deposit", shall be deposited in the aggregate from
collections under Section 9 of the Use Tax Act, Section 9 of
the Service Use Tax Act, Section 9 of the Service Occupation
Tax Act, and Section 3 of the Retailers' Occupation Tax Act
into the McCormick Place Expansion Project Fund in the
specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 84,000,000
2003 89,000,000
2004 93,000,000
2005 97,000,000
2006 102,000,000
2007 and 106,000,000
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority
Act, but not after fiscal year 2029.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year,
but not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Build Illinois
Fund and the McCormick Place Expansion Project Fund pursuant
to the preceding paragraphs or in any amendment thereto
hereafter enacted, each month the Department shall pay into
the Local Government Distributive Fund 0.4% of the net
revenue realized for the preceding month from the 5% general
rate or 0.4% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate, as the case may
be, on the selling price of tangible personal property which
amount shall, subject to appropriation, be distributed as
provided in Section 2 of the State Revenue Sharing Act. No
payments or distributions pursuant to this paragraph shall be
made if the tax imposed by this Act on photoprocessing
products is declared unconstitutional, or if the proceeds
from such tax are unavailable for distribution because of
litigation.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project to the preceding
paragraphs or in any amendments thereto hereafter enacted,
beginning July 1, 1993, the Department shall each month pay
into the Illinois Tax Increment Fund 0.27% of 80% of the net
revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the
State Treasury and 25% shall be reserved in a special account
and used only for the transfer to the Common School Fund as
part of the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a
statement of gross receipts as shown by the retailer's last
Federal income tax return. If the total receipts of the
business as reported in the Federal income tax return do not
agree with the gross receipts reported to the Department of
Revenue for the same period, the retailer shall attach to his
annual return a schedule showing a reconciliation of the 2
amounts and the reasons for the difference. The retailer's
annual return to the Department shall also disclose the cost
of goods sold by the retailer during the year covered by such
return, opening and closing inventories of such goods for
such year, costs of goods used from stock or taken from stock
and given away by the retailer during such year, payroll
information of the retailer's business during such year and
any additional reasonable information which the Department
deems would be helpful in determining the accuracy of the
monthly, quarterly or annual returns filed by such retailer
as provided for in this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be
liable as follows:
(i) Until January 1, 1994, the taxpayer shall be
liable for a penalty equal to 1/6 of 1% of the tax due
from such taxpayer under this Act during the period to be
covered by the annual return for each month or fraction
of a month until such return is filed as required, the
penalty to be assessed and collected in the same manner
as any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer
shall be liable for a penalty as described in Section 3-4
of the Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person
who willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and
punished accordingly. The annual return form prescribed by
the Department shall include a warning that the person
signing the return may be liable for perjury.
The provisions of this Section concerning the filing of
an annual information return do not apply to a retailer who
is not required to file an income tax return with the United
States Government.
As soon as possible after the first day of each month,
upon certification of the Department of Revenue, the
Comptroller shall order transferred and the Treasurer shall
transfer from the General Revenue Fund to the Motor Fuel Tax
Fund an amount equal to 1.7% of 80% of the net revenue
realized under this Act for the second preceding month;
except that this transfer shall not be made for the months
February through June, 1992.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail
in Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
Any person who promotes, organizes, provides retail
selling space for concessionaires or other types of sellers
at the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets and similar exhibitions
or events, including any transient merchant as defined by
Section 2 of the Transient Merchant Act of 1987, is required
to file a report with the Department providing the name of
the merchant's business, the name of the person or persons
engaged in merchant's business, the permanent address and
Illinois Retailers Occupation Tax Registration Number of the
merchant, the dates and location of the event and other
reasonable information that the Department may require. The
report must be filed not later than the 20th day of the month
next following the month during which the event with retail
sales was held. Any person who fails to file a report
required by this Section commits a business offense and is
subject to a fine not to exceed $250.
Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art
shows, flea markets and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report
of the amount of such sales to the Department and to make a
daily payment of the full amount of tax due. The Department
shall impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on
evidence that a substantial number of concessionaires or
other sellers who are not residents of Illinois will be
engaging in the business of selling tangible personal
property at retail at the exhibition or event, or other
evidence of a significant risk of loss of revenue to the
State. The Department shall notify concessionaires and other
sellers affected by the imposition of this requirement. In
the absence of notification by the Department, the
concessionaires and other sellers shall file their returns as
otherwise required in this Section.
(Source: P.A. 89-89, eff. 6-30-95; 89-235, eff. 8-4-95;
89-379, eff. 1-1-96; 89-626, eff. 8-9-96; 90-491, eff.
1-1-99; 90-612, eff. 7-8-98.)
(35 ILCS 120/5k) (from Ch. 120, par. 444k)
Sec. 5k. Each retailer whose place a business is within
a county or municipality which has established an Enterprise
Zone pursuant to the "Illinois Enterprise Zone Act" and who
makes a sale of building materials to be incorporated into
real estate in such enterprise zone by remodeling,
rehabilitation or new construction, may deduct receipts from
such sales when calculating the tax imposed by this Act. The
deduction allowed by this Section for the sale of building
materials may be limited, to the extent authorized by
ordinance, adopted after the effective date of this
amendatory Act of 1992, by the municipality or county that
created the enterprise zone. The corporate authorities of
any municipality or county that adopts an ordinance or
resolution imposing or changing any limitation on the
enterprise zone exemption for building materials shall
transmit to the Department of Revenue on or not later than 5
days after publication, as provided by law, a certified copy
of the ordinance or resolution imposing or changing those
limitations, whereupon the Department of Revenue shall
proceed to administer and enforce those limitations effective
the first day of the second calendar month next following
date of receipt by the Department of the certified ordinance
or resolution.
(Source: P.A. 87-848.)
Section 140. The Counties Code is amended by re-enacting
Sections 5-1006, 5-1007, 5-1008, 5-1009, and 5-1024 as
follows:
(55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
Sec. 5-1006. Home Rule County Retailers' Occupation Tax
Law. Any county that is a home rule unit may impose a tax
upon all persons engaged in the business of selling tangible
personal property, other than an item of tangible personal
property titled or registered with an agency of this State's
government, at retail in the county on the gross receipts
from such sales made in the course of their business. If
imposed, this tax shall only be imposed in 1/4% increments.
On and after September 1, 1991, this additional tax may not
be imposed on the sales of food for human consumption which
is to be consumed off the premises where it is sold (other
than alcoholic beverages, soft drinks and food which has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes and needles used
by diabetics. The tax imposed by a home rule county pursuant
to this Section and all civil penalties that may be assessed
as an incident thereof shall be collected and enforced by the
State Department of Revenue. 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 under any ordinance or
resolution enacted pursuant to this Section without
registering separately with the Department under such
ordinance or resolution or under this Section. The
Department shall have full power to administer and enforce
this Section; 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 Section, the Department and
persons who are subject to this Section shall have the same
rights, remedies, privileges, immunities, powers and duties,
and be subject to the same conditions, restrictions,
limitations, penalties and definitions of terms, and 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 2-65 (in
respect to all provisions therein other than the State rate
of tax), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions
were set forth herein.
No tax may be imposed by a home rule county pursuant to
this Section unless the county also imposes a tax at the same
rate pursuant to Section 5-1007.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves
for their seller's tax liability hereunder by separately
stating such 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 bracket 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 home rule county retailers' occupation
tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder. 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
named counties, the counties to be those from which retailers
have paid taxes or penalties hereunder to the Department
during the second preceding calendar month. The amount to be
paid to each county shall be the amount (not including credit
memoranda) collected hereunder 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 an amount equal to the amount of refunds made
during the second preceding calendar month by the Department
on behalf of such county, and not including any amount which
the Department determines is necessary to offset any amounts
which were payable to a different taxing body but were
erroneously paid to the county. Within 10 days after receipt,
by the Comptroller, of the disbursement certification to the
counties 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 the 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.
For the purpose of determining the local governmental
unit whose tax is applicable, a retail sale by a producer of
coal or other 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 other 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.
Nothing in this Section shall be construed to authorize a
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 this State.
An ordinance or resolution imposing or discontinuing a
tax hereunder or effecting a change in the rate thereof shall
be adopted and a certified copy thereof filed with the
Department on or before the first day of June, whereupon the
Department shall proceed to administer and enforce this
Section as of the first day of September next following such
adoption and filing. Beginning January 1, 1992, an ordinance
or resolution imposing or discontinuing the tax hereunder or
effecting a change in the rate thereof shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of July, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, an ordinance or resolution imposing or
discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following such adoption and filing. Beginning April 1, 1998,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of July next following the
adoption and filing; or (ii) be adopted and a certified copy
thereof filed with the Department on or before the first day
of October, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
January next following the adoption and filing.
When certifying the amount of a monthly disbursement to a
county under this Section, the Department shall increase or
decrease such amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
This Section shall be known and may be cited as the Home
Rule County Retailers' Occupation Tax Law.
(Source: P.A. 90-689, eff. 7-31-98.)
(55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
Sec. 5-1007. Home Rule County Service Occupation Tax
Law. The corporate authorities of a home rule county may
impose a tax upon all persons engaged, in such county, in the
business of making sales of service at the same rate of tax
imposed pursuant to Section 5-1006 of the selling price of
all tangible personal property transferred by such servicemen
either in the form of tangible personal property or in the
form of real estate as an incident to a sale of service. If
imposed, such tax shall only be imposed in 1/4% increments.
On and after September 1, 1991, this additional tax may not
be imposed on the sales of food for human consumption which
is to be consumed off the premises where it is sold (other
than alcoholic beverages, soft drinks and food which has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes and needles used
by diabetics. The tax imposed by a home rule county pursuant
to this Section and all civil penalties that may be assessed
as an incident thereof shall be collected and enforced by the
State Department of Revenue. The certificate of registration
which is issued by the Department to a retailer under the
Retailers' Occupation Tax Act or under the Service Occupation
Tax Act shall permit such registrant to engage in a business
which is taxable under any ordinance or resolution enacted
pursuant to this Section without registering separately with
the Department under such ordinance or resolution or under
this Section. The Department shall have full power to
administer and enforce this Section; 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 Section the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities,
powers and duties, and be subject to the same conditions,
restrictions, limitations, penalties and definitions of
terms, and employ the same modes of procedure, as are
prescribed in Sections 1a-1, 2, 2a, 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 taxing 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 taxing county), 9 (except as to
the disposition of taxes and penalties collected, and except
that the returned merchandise credit for this county tax may
not be taken against any State tax), 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 taxing county), the first paragraph of 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.
No tax may be imposed by a home rule county pursuant to
this Section unless such county also imposes a tax at the
same rate pursuant to Section 5-1006.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves
for their serviceman's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax
which servicemen are authorized to collect under the Service
Use Tax Act, pursuant to such bracket 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
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 such
notification from the Department. Such refund shall be paid
by the State Treasurer out of the home rule county retailers'
occupation tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex-officio, as trustee, all taxes and penalties
collected hereunder. 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
named counties, the counties to be those from which suppliers
and servicemen have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each county shall be the amount (not
including credit memoranda) collected hereunder during the
second preceding calendar month by the Department, and not
including an amount equal to the amount of refunds made
during the second preceding calendar month by the Department
on behalf of such county. Within 10 days after receipt, by
the Comptroller, of the disbursement certification to the
counties 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 the directions contained in such
certification.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in each year to each
county which 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.
Nothing in this Section shall be construed to authorize a
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 this State.
An ordinance or resolution imposing or discontinuing a
tax hereunder or effecting a change in the rate thereof shall
be adopted and a certified copy thereof filed with the
Department on or before the first day of June, whereupon the
Department shall proceed to administer and enforce this
Section as of the first day of September next following such
adoption and filing. Beginning January 1, 1992, an ordinance
or resolution imposing or discontinuing the tax hereunder or
effecting a change in the rate thereof shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of July, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, an ordinance or resolution imposing or
discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following such adoption and filing. Beginning April 1, 1998,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of July next following the
adoption and filing; or (ii) be adopted and a certified copy
thereof filed with the Department on or before the first day
of October, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
January next following the adoption and filing.
This Section shall be known and may be cited as the Home
Rule County Service Occupation Tax Law.
(Source: P.A. 90-689, eff. 7-31-98.)
(55 ILCS 5/5-1008) (from Ch. 34, par. 5-1008)
Sec. 5-1008. Home Rule County Use Tax. The corporate
authorities of a home rule county may impose a tax upon the
privilege of using, in such county, any item of tangible
personal property which is purchased at retail from a
retailer, and which is titled or registered to a purchaser
residing within the corporate limits of such home rule county
with an agency of this State's government, at a rate which is
an increment of 1/4% and based on the selling price of such
tangible personal property, as "selling price" is defined in
the "Use Tax Act", approved July 14, 1955, as amended. Such
tax shall be collected from persons whose Illinois address
for titling or registration purposes is given as being in
such county. Such tax shall be collected by the county
imposing such tax.
This Section shall be known and may be cited as the "Home
Rule County Use Tax Law".
(Source: P.A. 86-962.)
(55 ILCS 5/5-1009) (from Ch. 34, par. 5-1009)
Sec. 5-1009. Limitation on home rule powers. Except as
provided in Sections 5-1006, 5-1006.5, 5-1007 and 5-1008, on
and after September 1, 1990, no home rule county has the
authority to impose, pursuant to its home rule authority, a
retailer's occupation tax, service occupation tax, use tax,
sales tax or other tax on the use, sale or purchase of
tangible personal property based on the gross receipts from
such sales or the selling or purchase price of said tangible
personal property. Notwithstanding the foregoing, this
Section does not preempt any home rule imposed tax such as
the following: (1) a tax on alcoholic beverages, whether
based on gross receipts, volume sold or any other
measurement; (2) a tax based on the number of units of
cigarettes or tobacco products; (3) a tax, however measured,
based on the use of a hotel or motel room or similar
facility; (4) a tax, however measured, on the sale or
transfer of real property; (5) a tax, however measured, on
lease receipts; (6) a tax on food prepared for immediate
consumption and on alcoholic beverages sold by a business
which provides for on premise consumption of said food or
alcoholic beverages; or (7) other taxes not based on the
selling or purchase price or gross receipts from the use,
sale or purchase of tangible personal property. This Section
is a limitation, pursuant to subsection (g) of Section 6 of
Article VII of the Illinois Constitution, on the power of
home rule units to tax.
(Source: P.A. 89-107, eff. 1-1-96.)
(55 ILCS 5/5-1024) (from Ch. 34, par. 5-1024)
Sec. 5-1024. Taxes. A county board may cause to be
levied and collected annually, except as hereinafter
provided, taxes for county purposes, including all purposes
for which money may be raised by the county by taxation, in
counties having 80,000 or more but less than 3,000,000
inhabitants at a rate not exceeding .25%, of the value as
equalized or assessed by the Department of Revenue; in
counties with less than 80,000 but more than 15,000
inhabitants at a rate not exceeding .27%, of the value as
equalized or assessed by the Department of Revenue; in
counties with less than 80,000 inhabitants which have
authorized a tax by referendum under Section 7-2 of the
Juvenile Court Act prior to the effective date of this
amendatory Act of 1985, at a rate not exceeding .32%, of the
value as equalized or assessed by the Department of Revenue;
and in counties with 15,000 or fewer inhabitants at a rate
not exceeding .37%, of the value as equalized or assessed by
the Department of Revenue; and in counties having 3,000,000
or more inhabitants for each even numbered year, subject to
the abatement requirements hereinafter provided, at a rate
not exceeding .39% of the value, as equalized or assessed by
the Department of Revenue, and for each odd numbered year,
subject to the abatement requirements hereinafter provided,
at a rate not exceeding .35% of the value as equalized or
assessed by the Department of Revenue, except taxes for the
payment of interest on and principal of bonded indebtedness
heretofore duly authorized for the construction of State aid
roads in the county as defined in "An Act to revise the law
in relation to roads and bridges", approved June 27, 1913, or
for the construction of county highways as defined in the
Illinois Highway Code, and except taxes for the payment of
interest on and principal of bonded indebtedness duly
authorized without a vote of the people of the county, and
except taxes authorized as additional by a vote of the people
of the county, and except taxes for working cash fund
purposes, and except taxes as authorized by Sections 5-601,
5-602, 5-603, 5-604 and 6-512 of the Illinois Highway Code,
and except taxes authorized under Section 7 of the Village
Library Act, and except taxes levied to pay the annual rent
payments due under a lease entered into by the county with a
Public Building Commission as authorized by Section 18 of the
Public Building Commission Act, and except taxes levied under
Division 6-3, and except taxes levied for general assistance
for needy persons in counties under commission form of
government and except taxes levied under the County Care for
Persons with Developmental Disabilities Act, and except taxes
levied under the Community Mental Health Act, and except
taxes levied under Section 5-1025 to pay the expenses of
elections and except taxes levied under "An Act to provide
the manner of levying or imposing taxes for the provision of
special services to areas within the boundaries of home rule
units and non-home rule municipalities and counties",
approved September 21, 1973, and except taxes levied under
Section 3a of the Revenue Act of 1939 for the purposes of
helping to pay for the expenses of the assessor's office, and
except taxes levied under Division 5-21, and except taxes
levied pursuant to Section 19 of "The Illinois Emergency
Services and Disaster Agency Act of 1975", as now or
hereafter amended, and except taxes levied pursuant to
Division 5-23, and except taxes levied under Section 5 of the
County Shelter Care and Detention Home Act, and except taxes
levied under the Children's Advocacy Center Act, and except
taxes levied under Section 9-107 of the Local Governmental
and Governmental Employees Tort Immunity Act.
Those taxes a county has levied and excepted from the
rate limitation imposed by this Section or Section 25.05 of
"An Act to revise the law in relation to counties", approved
March 31, 1874, in reliance on this amendatory Act of 1994
are not invalid because of any provision of this Section that
may be construed to or may have been construed to restrict or
limit those taxes levied and those taxes are hereby
validated. This validation of taxes levied applies to all
cases pending on or after the effective date of this
amendatory Act of 1994.
Nothing contained in this amendatory Act of 1994 shall be
construed to affect the application of the Property Tax
Extension Limitation Law.
Any tax levied for general assistance for needy persons
in any county in addition to and in excess of the maximum
levy permitted by this Section for general county purposes
shall be paid into a special fund in the county treasury and
used only for the purposes for which it is levied except that
any excess in such fund over the amount needed for general
assistance may be used for County Nursing Home purposes and
shall not exceed .10% of the value, as equalized or assessed
by the Department of Revenue. Any taxes levied for general
assistance pursuant to this Section may also be used for the
payment of warrants issued against and in anticipation of
such taxes and accrued interest thereon and may also be used
for the payment of costs of administering such general
assistance.
In counties having 3,000,000 or more inhabitants, taxes
levied for any year for any purpose or purposes, except
amounts levied for the payment of bonded indebtedness or
interest thereon and for pension fund purpose, and except
taxes levied to pay the annual rent payments due under a
lease entered into by the county with a Public Building
Commission as authorized by Section 18 of the Public Building
Commission Act, are subject to the limitation that they shall
not exceed the estimated amount of taxes to be levied for the
year for the purpose or purposes as determined in accordance
with Section 6-24001 and set forth in the annual
appropriation bill of the county and in ascertaining the rate
per cent that will produce the amount of any tax levied in
any county, the county clerk shall not add to the tax or rate
any sum or amount to cover the loss and cost of collecting
the tax, except in the case of amounts levied for the payment
of bonded indebtedness or interest thereon, and in the case
of amounts levied for pension fund purposes, and except taxes
levied to pay the annual rent payments due under a lease
entered into by the county with a Public Building Commission
as authorized by Section 18 of the Public Building Commission
Act.
In counties having a population of 3,000,000 or more
inhabitants, the county clerk shall in each even numbered
year, before extending the county tax for the year, reduce
the levy for county purposes for the year (exclusive of
levies for payment of indebtedness and payment of interest on
and principal of bonded indebtedness as aforesaid, and
exclusive of county highway taxes as aforesaid, and exclusive
of pension fund taxes, and except taxes levied to pay the
annual rent payments due under a lease entered into by the
county with a Public Building Commission as authorized by
Section 18 of the Public Building Commission Act) in the
manner described and in an amount to be determined as
follows: If the amount received from the collection of the
tax levied in the last preceding even numbered year for
county purposes as aforesaid, as shown by the county
treasurer's final settlement for the last preceding even
numbered year and also by subsequent receipts of delinquent
taxes for the county purposes fund levied for the last
preceding even numbered year, equals or exceeds the amount
produced by multiplying the rate extended for the county
purposes for the last preceding even numbered year by the
total assessed valuation of all property in the county used
in the year for purposes of state and county taxes, and by
deducting therefrom the amount appropriated to cover the loss
and cost of collecting taxes to be levied for the county
purposes fund for the last preceding even numbered year, the
clerk in determining the rate per cent to be extended for the
county purposes fund shall deduct from the amount of the levy
certified to him for county purposes as aforesaid for even
numbered years the amount received by the county clerk or
withheld by the county treasurer from other municipal
corporations within the county as their pro rata share of
election expenses for the last preceding even numbered year,
as authorized in Sections 13-11, 13-12, 13-13 and 16-2 of the
Election Code, and the clerk in these counties shall extend
only the net amount remaining after such deductions.
The foregoing limitations upon tax rates, insofar as they
are applicable to counties having less than 3,000,000
inhabitants, may be increased or decreased under the
referendum provisions of the General Revenue Law of Illinois
and there shall be no limit on the rate of tax for county
purposes that may be levied by a county so long as any
increase in the rate is authorized by referendum in that
county.
Any county having a population of less than 3,000,000
inhabitants that has determined to change its fiscal year
may, as a means of effectuating a change, instead of levying
taxes for a one-year period, levy taxes for a period greater
or less than a year as may be necessary.
In counties having less than 3,000,000 inhabitants, in
ascertaining the rate per cent that will produce the amount
of any tax levied in that county, the County Clerk shall not
add to the tax or rate any sum or amount to cover the loss
and cost of collecting the tax except in the case of amounts
levied for the payment of bonded indebtedness or interest
thereon and in the case of amounts levied for pension fund
purposes and except taxes levied to pay the annual rent
payments due under a lease entered into by the county with a
Public Building Commission as authorized by Section 18 of the
Public Building Commission Act.
A county shall not have its maximum tax rate reduced as a
result of a population increase indicated by the 1980 federal
census.
(Source: P.A. 88-545; 89-585, eff. 1-1-97.)
(Ch. 34, rep. pars. 406a, 409.1, 409.1a, 409.2, 409.2a,
409.10, 409.10a and 409.10.1)
Section 145. Sections 25.05a, 25.05-2, 25.05-2a,
25.05-3, 25.05-3a, 25.05-10, 25.05-10a and 25.05-10.1 of "An
Act to revise the law in relation to counties", approved
March 31, 1874, as amended, are re-repealed.
Section 150. The Illinois Municipal Code is amended by
re-enacting Sections 8-11-1, 8-11-1.1, 8-11-1.2, 8-11-1.3,
8-11-1.4, 8-11-5, 8-11-6, 8-11-6a, 8-11-16, and 11-74.4-8a as
follows:
(65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
Sec. 8-11-1. Home Rule Municipal Retailers' Occupation
Tax Act. The corporate authorities of a home rule
municipality may impose a tax upon all persons engaged in the
business of selling tangible personal property, other than an
item of tangible personal property titled or registered with
an agency of this State's government, at retail in the
municipality on the gross receipts from these sales made in
the course of such business. If imposed, the tax shall only
be imposed in 1/4% increments. On and after September 1,
1991, this additional tax may not be imposed on the sales of
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
soft drinks and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances and insulin, urine testing
materials, syringes and needles used by diabetics. The tax
imposed by a home rule municipality under this Section and
all civil penalties that may be assessed as an incident of
the tax shall be collected and enforced by the State
Department of Revenue. 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 under any ordinance or
resolution enacted pursuant to this Section without
registering separately with the Department under such
ordinance or resolution or under this Section. The
Department shall have full power to administer and enforce
this Section; 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 Section the Department and
persons who are subject to this Section shall have the same
rights, remedies, privileges, immunities, powers and duties,
and be subject to the same conditions, restrictions,
limitations, penalties and definitions of terms, and employ
the same modes of procedure, as are prescribed in Sections 1,
1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in
respect to all provisions therein other than the State rate
of tax), 2c, 3 (except as to the disposition of taxes and
penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of
the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
No tax may be imposed by a home rule municipality under
this Section unless the municipality also imposes a tax at
the same rate under Section 8-11-5 of this Act.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating that
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 bracket 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 home rule municipal retailers'
occupation tax fund.
The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder. 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
named municipalities, the municipalities to be those from
which retailers have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount
(not including credit memoranda) collected hereunder 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 an amount equal to the amount of
refunds made during the second preceding calendar month by
the Department on behalf of such municipality, and not
including 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
municipality. Within 10 days after receipt by the Comptroller
of the disbursement certification to the municipalities
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 the
directions contained in the certification.
In addition to the disbursement required by the preceding
paragraph and in order to mitigate delays caused by
distribution procedures, an allocation shall, if requested,
be made within 10 days after January 14, 1991, and in
November of 1991 and each year thereafter, to each
municipality that received more than $500,000 during the
preceding fiscal year, (July 1 through June 30) whether
collected by the municipality or disbursed by the Department
as required by this Section. Within 10 days after January 14,
1991, participating municipalities shall notify the
Department in writing of their intent to participate. In
addition, for the initial distribution, participating
municipalities shall certify to the Department the amounts
collected by the municipality for each month under its home
rule occupation and service occupation tax during the period
July 1, 1989 through June 30, 1990. The allocation within 10
days after January 14, 1991, shall be in an amount equal to
the monthly average of these amounts, excluding the 2 months
of highest receipts. The monthly average for the period of
July 1, 1990 through June 30, 1991 will be determined as
follows: the amounts collected by the municipality under its
home rule occupation and service occupation tax during the
period of July 1, 1990 through September 30, 1990, plus
amounts collected by the Department and paid to such
municipality through June 30, 1991, excluding the 2 months of
highest receipts. The monthly average for each subsequent
period of July 1 through June 30 shall be an amount equal to
the monthly distribution made to each such municipality under
the preceding paragraph during this period, excluding the 2
months of highest receipts. The distribution made in
November 1991 and each year thereafter under this paragraph
and the preceding paragraph shall be reduced by the amount
allocated and disbursed under this paragraph in the preceding
period of July 1 through June 30. The Department shall
prepare and certify to the Comptroller for disbursement the
allocations made in accordance with this paragraph.
For the purpose of determining the local governmental
unit whose tax is applicable, a retail sale by a producer of
coal or other 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 other 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.
Nothing in this Section shall be construed to authorize a
municipality 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 this State.
An ordinance or resolution imposing or discontinuing a
tax hereunder or effecting a change in the rate thereof shall
be adopted and a certified copy thereof filed with the
Department on or before the first day of June, whereupon the
Department shall proceed to administer and enforce this
Section as of the first day of September next following the
adoption and filing. Beginning January 1, 1992, an ordinance
or resolution imposing or discontinuing the tax hereunder or
effecting a change in the rate thereof shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of July, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, an ordinance or resolution imposing or
discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following the adoption and filing. However, a municipality
located in a county with a population in excess of 3,000,000
that elected to become a home rule unit at the general
primary election in 1994 may adopt an ordinance or resolution
imposing the tax under this Section and file a certified copy
of the ordinance or resolution with the Department on or
before July 1, 1994. The Department shall then proceed to
administer and enforce this Section as of October 1, 1994.
Beginning April 1, 1998, an ordinance or resolution imposing
or discontinuing the tax hereunder or effecting a change in
the rate thereof shall either (i) be adopted and a certified
copy thereof filed with the Department on or before the first
day of April, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
July next following the adoption and filing; or (ii) be
adopted and a certified copy thereof filed with the
Department on or before the first day of October, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of January next following the
adoption and filing.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall
increase or decrease the amount by an amount necessary to
offset any misallocation of previous disbursements. The
offset amount shall be the amount erroneously disbursed
within the previous 6 months from the time a misallocation is
discovered.
Any unobligated balance remaining in the Municipal
Retailers' Occupation Tax Fund on December 31, 1989, which
fund was abolished by Public Act 85-1135, and all receipts of
municipal tax as a result of audits of liability periods
prior to January 1, 1990, shall be paid into the Local
Government Tax Fund for distribution as provided by this
Section prior to the enactment of Public Act 85-1135. All
receipts of municipal tax as a result of an assessment not
arising from an audit, for liability periods prior to January
1, 1990, shall be paid into the Local Government Tax Fund for
distribution before July 1, 1990, as provided by this Section
prior to the enactment of Public Act 85-1135; and on and
after July 1, 1990, all such receipts shall be distributed as
provided in Section 6z-18 of the State Finance Act.
As used in this Section, "municipal" and "municipality"
means a city, village or incorporated town, including an
incorporated town that has superseded a civil township.
This Section shall be known and may be cited as the Home
Rule Municipal Retailers' Occupation Tax Act.
(Source: P.A. 90-689, eff. 7-31-98.)
(65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
Sec. 8-11-1.1. (a) The corporate authorities of a
non-home rule municipality with a population greater than
130,000 but less than 2,000,000 may, upon approval of the
electors of the municipality pursuant to subsection (b) of
this Section, impose by ordinance or resolution the 1/2 of 1%
tax authorized in Sections 8-11-1.3, 8-11-1.4 and 8-11-1.5 of
this Act.
(b) The corporate authorities of the municipality may by
ordinance or resolution call for the submission to the
electors of the municipality the question of whether the
municipality shall impose such tax. Such question shall be
certified by the municipal clerk to the election authority in
accordance with Section 28-5 of the Election Code and shall
be in a form in accordance with Section 16-7 of the Election
Code.
If a majority of the electors in the municipality voting
upon the question vote in the affirmative, such tax shall be
imposed.
An ordinance or resolution imposing the 1/2 of 1% tax
hereunder or discontinuing the same shall be adopted and a
certified copy thereof, together with a certification that
the ordinance or resolution received referendum approval in
the case of the imposition of such tax, filed with the
Department of Revenue, on or before the first day of June,
whereupon the Department shall proceed to administer and
enforce the additional tax or to discontinue the tax, as the
case may be, as of the first day of September next following
such adoption and filing. Beginning January 1, 1992, an
ordinance or resolution imposing or discontinuing the tax
hereunder shall be adopted and a certified copy thereof filed
with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1,
1993, an ordinance or resolution imposing or discontinuing
the tax hereunder shall be adopted and a certified copy
thereof filed with the Department on or before the first day
of October, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
January next following such adoption and filing.
(Source: P.A. 86-928; 87-205.)
(65 ILCS 5/8-11-1.2) (from Ch. 24, par. 8-11-1.2)
Sec. 8-11-1.2. Definition. As used in Sections
8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act, "public
infrastructure" means municipal roads and streets, access
roads, bridges, and sidewalks; waste disposal systems; and
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities.
(Source: P.A. 86-928.)
(65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
Sec. 8-11-1.3. The corporate authorities of a non-home
rule municipality with more than 130,000 but less than
2,000,000 inhabitants may impose a tax upon all persons
engaged in the business of selling tangible personal
property, other than on an item of tangible personal property
which is titled and registered by an agency of this State's
Government, at retail in the municipality at the rate of 1/2
of 1% for expenditure on public infrastructure as defined in
Section 8-11-1.2 if approved by referendum as provided in
Section 8-11-1.1, of the gross receipts from such sales made
in the course of such business. The tax imposed by a
municipality pursuant to this Section and all civil penalties
that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue.
The certificate of registration which is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act shall permit such retailer to engage in a business which
is taxable under any ordinance or resolution enacted pursuant
to this Section without registering separately with the
Department under such ordinance or resolution or under this
Section. The Department shall have full power to administer
and enforce this Section; 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 Section, the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities,
powers and duties, and be subject to the same conditions,
restrictions, limitations, penalties and definitions of
terms, and employ the same modes of procedure, as are
prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
through 2-65 (in respect to all provisions therein other than
the State rate of tax), 2c, 3 (except as to the disposition
of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e,
5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
12 and 13 of the Retailers' 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 pursuant to the
authority granted in this Section may reimburse themselves
for their seller's tax liability hereunder by separately
stating such 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 bracket 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 such
notification from the Department. Such refund shall be paid
by the State Treasurer out of the non-home rule municipal
retailers' occupation tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder. 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
named municipalities, the municipalities to be those from
which retailers have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount
(not including credit memoranda) collected hereunder during
the second preceding calendar month by the Department plus an
amount the Department determines is necessary to offset any
amounts which were erroneously paid to a different taxing
body, and not including an amount equal to the amount of
refunds made during the second preceding calendar month by
the Department on behalf of such municipality, and not
including any amount which the Department determines is
necessary to offset any amounts which were payable to a
different taxing body but were erroneously paid to the
municipality. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities, 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 the directions contained in such
certification.
For the purpose of determining the local governmental
unit whose tax is applicable, a retail sale, by a producer of
coal or other 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 other 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 Federal
Constitution as a sale in interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality 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 this State.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall
increase or decrease such amount by an amount necessary to
offset any misallocation of previous disbursements. The
offset amount shall be the amount erroneously disbursed
within the previous 6 months from the time a misallocation is
discovered.
As used in this Section, "municipal" and "municipality"
means a city, village or incorporated town, including an
incorporated town which has superseded a civil township.
This Section shall be known and may be cited as the
"Non-Home Rule Municipal Retailers' Occupation Tax Act".
(Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
(65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
Sec. 8-11-1.4. The corporate authorities of a non-home
rule municipality with a population of more than 130,000 but
less than 2,000,000 may impose a tax upon all persons
engaged, in such municipality, in the business of making
sales of service at the rate of 1/2 of 1% for expenditure on
public infrastructure as defined in Section 8-11-1.2 if
approved by referendum as provided in Section 8-11-1.1, of
the selling price of all tangible personal property
transferred by such servicemen either in the form of tangible
personal property or in the form of real estate as an
incident to a sale of service. The tax imposed by a
municipality pursuant to this Section and all civil penalties
that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue.
The certificate of registration which is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act or under the Service Occupation Tax Act shall permit such
registrant to engage in a business which is taxable under any
ordinance or resolution enacted pursuant to this Section
without registering separately with the Department under such
ordinance or resolution or under this Section. The Department
shall have full power to administer and enforce this Section;
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 Section the Department and persons who are subject to
this Section shall have the same rights, remedies,
privileges, immunities, powers and duties, and be subject to
the same conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1a-1, 2, 2a, 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 taxing municipality), 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 taxing
municipality), 9 (except as to the disposition of taxes and
penalties collected, and except that the returned merchandise
credit for this municipal tax may not be taken against any
State tax), 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 taxing
municipality), the first paragraph of 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 pursuant to the
authority granted in this Section may reimburse themselves
for their serviceman's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax
which servicemen are authorized to collect under the Service
Use Tax Act, pursuant to such bracket 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
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 such
notification from the Department. Such refund shall be paid
by the State Treasurer out of the municipal retailers'
occupation tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder. 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
named municipalities, the municipalities to be those from
which suppliers and servicemen have paid taxes or penalties
hereunder to the Department during the second preceding
calendar month. The amount to be paid to each municipality
shall be the amount (not including credit memoranda)
collected hereunder during the second preceding calendar
month by the Department, and not including an amount equal to
the amount of refunds made during the second preceding
calendar month by the Department on behalf of such
municipality. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and the General Revenue 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 the
directions contained in such certification.
Nothing in this Section shall be construed to authorize a
municipality 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 this State.
As used in this Section, "municipal" or "municipality"
means or refers to a city, village or incorporated town,
including an incorporated town which has superseded a civil
township.
This Section shall be known and may be cited as the
"Non-Home Rule Municipal Service Occupation Tax Act".
(Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
(65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
Act. The corporate authorities of a home rule municipality
may impose a tax upon all persons engaged, in such
municipality, in the business of making sales of service at
the same rate of tax imposed pursuant to Section 8-11-1, of
the selling price of all tangible personal property
transferred by such servicemen either in the form of tangible
personal property or in the form of real estate as an
incident to a sale of service. If imposed, such tax shall
only be imposed in 1/4% increments. On and after September 1,
1991, this additional tax may not be imposed on the sales of
food for human consumption which is to be consumed off the
premises where it is sold (other than alcoholic beverages,
soft drinks and food which has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances and insulin, urine testing
materials, syringes and needles used by diabetics. The tax
imposed by a home rule municipality pursuant to this Section
and all civil penalties that may be assessed as an incident
thereof shall be collected and enforced by the State
Department of Revenue. The certificate of registration which
is issued by the Department to a retailer under the
Retailers' Occupation Tax Act or under the Service Occupation
Tax Act shall permit such registrant to engage in a business
which is taxable under any ordinance or resolution enacted
pursuant to this Section without registering separately with
the Department under such ordinance or resolution or under
this Section. The Department shall have full power to
administer and enforce this Section; 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 Section the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities,
powers and duties, and be subject to the same conditions,
restrictions, limitations, penalties and definitions of
terms, and employ the same modes of procedure, as are
prescribed in Sections 1a-1, 2, 2a, 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 taxing municipality), 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 taxing
municipality), 9 (except as to the disposition of taxes and
penalties collected, and except that the returned merchandise
credit for this municipal tax may not be taken against any
State tax), 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 taxing
municipality), the first paragraph of Section 15, 16, 17
(except that credit memoranda issued hereunder may not be
used to discharge any State tax liability), 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.
No tax may be imposed by a home rule municipality
pursuant to this Section unless such municipality also
imposes a tax at the same rate pursuant to Section 8-11-1 of
this Act.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves
for their serviceman's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax
which servicemen are authorized to collect under the Service
Use Tax Act, pursuant to such bracket 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
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 such
notification from the Department. Such refund shall be paid
by the State Treasurer out of the home rule municipal
retailers' occupation tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex-officio, as trustee, all taxes and penalties
collected hereunder. 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
named municipalities, the municipalities to be those from
which suppliers and servicemen have paid taxes or penalties
hereunder to the Department during the second preceding
calendar month. The amount to be paid to each municipality
shall be the amount (not including credit memoranda)
collected hereunder during the second preceding calendar
month by the Department, and not including an amount equal to
the amount of refunds made during the second preceding
calendar month by the Department on behalf of such
municipality. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities, 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 the directions contained in such
certification.
In addition to the disbursement required by the preceding
paragraph and in order to mitigate delays caused by
distribution procedures, an allocation shall, if requested,
be made within 10 days after January 14, 1991, and in
November of 1991 and each year thereafter, to each
municipality that received more than $500,000 during the
preceding fiscal year, (July 1 through June 30) whether
collected by the municipality or disbursed by the Department
as required by this Section. Within 10 days after January 14,
1991, participating municipalities shall notify the
Department in writing of their intent to participate. In
addition, for the initial distribution, participating
municipalities shall certify to the Department the amounts
collected by the municipality for each month under its home
rule occupation and service occupation tax during the period
July 1, 1989 through June 30, 1990. The allocation within 10
days after January 14, 1991, shall be in an amount equal to
the monthly average of these amounts, excluding the 2 months
of highest receipts. Monthly average for the period of July
1, 1990 through June 30, 1991 will be determined as follows:
the amounts collected by the municipality under its home rule
occupation and service occupation tax during the period of
July 1, 1990 through September 30, 1990, plus amounts
collected by the Department and paid to such municipality
through June 30, 1991, excluding the 2 months of highest
receipts. The monthly average for each subsequent period of
July 1 through June 30 shall be an amount equal to the
monthly distribution made to each such municipality under the
preceding paragraph during this period, excluding the 2
months of highest receipts. The distribution made in
November 1991 and each year thereafter under this paragraph
and the preceding paragraph shall be reduced by the amount
allocated and disbursed under this paragraph in the preceding
period of July 1 through June 30. The Department shall
prepare and certify to the Comptroller for disbursement the
allocations made in accordance with this paragraph.
Nothing in this Section shall be construed to authorize a
municipality 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 this State.
An ordinance or resolution imposing or discontinuing a
tax hereunder or effecting a change in the rate thereof shall
be adopted and a certified copy thereof filed with the
Department on or before the first day of June, whereupon the
Department shall proceed to administer and enforce this
Section as of the first day of September next following such
adoption and filing. Beginning January 1, 1992, an ordinance
or resolution imposing or discontinuing the tax hereunder or
effecting a change in the rate thereof shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of July, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, an ordinance or resolution imposing or
discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following such adoption and filing. However, a municipality
located in a county with a population in excess of 3,000,000
that elected to become a home rule unit at the general
primary election in 1994 may adopt an ordinance or resolution
imposing the tax under this Section and file a certified copy
of the ordinance or resolution with the Department on or
before July 1, 1994. The Department shall then proceed to
administer and enforce this Section as of October 1, 1994.
Beginning April 1, 1998, an ordinance or resolution imposing
or discontinuing the tax hereunder or effecting a change in
the rate thereof shall either (i) be adopted and a certified
copy thereof filed with the Department on or before the first
day of April, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
July next following the adoption and filing; or (ii) be
adopted and a certified copy thereof filed with the
Department on or before the first day of October, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of January next following the
adoption and filing.
Any unobligated balance remaining in the Municipal
Retailers' Occupation Tax Fund on December 31, 1989, which
fund was abolished by Public Act 85-1135, and all receipts of
municipal tax as a result of audits of liability periods
prior to January 1, 1990, shall be paid into the Local
Government Tax Fund, for distribution as provided by this
Section prior to the enactment of Public Act 85-1135. All
receipts of municipal tax as a result of an assessment not
arising from an audit, for liability periods prior to January
1, 1990, shall be paid into the Local Government Tax Fund for
distribution before July 1, 1990, as provided by this Section
prior to the enactment of Public Act 85-1135, and on and
after July 1, 1990, all such receipts shall be distributed as
provided in Section 6z-18 of the State Finance Act.
As used in this Section, "municipal" and "municipality"
means a city, village or incorporated town, including an
incorporated town which has superseded a civil township.
This Section shall be known and may be cited as the Home
Rule Municipal Service Occupation Tax Act.
(Source: P.A. 90-689, eff. 7-31-98.)
(65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
Sec. 8-11-6. Home Rule Municipal Use Tax Act.
(a) The corporate authorities of a home rule
municipality may impose a tax upon the privilege of using, in
such municipality, any item of tangible personal property
which is purchased at retail from a retailer, and which is
titled or registered at a location within the corporate
limits of such home rule municipality with an agency of this
State's government, at a rate which is an increment of 1/4%
and based on the selling price of such tangible personal
property, as "selling price" is defined in the Use Tax Act.
In home rule municipalities with less than 2,000,000
inhabitants, the tax shall be collected by the municipality
imposing the tax from persons whose Illinois address for
titling or registration purposes is given as being in such
municipality.
(b) In home rule municipalities with 2,000,000 or more
inhabitants, the corporate authorities of the municipality
may additionally impose a tax beginning July 1, 1991 upon the
privilege of using in the municipality, any item of tangible
personal property, other than tangible personal property
titled or registered with an agency of the State's
government, that is purchased at retail from a retailer
located outside the corporate limits of the municipality, at
a rate that is an increment of 1/4% not to exceed 1% and
based on the selling price of the tangible personal property,
as "selling price" is defined in the Use Tax Act. Such tax
shall be collected from the purchaser by the municipality
imposing such tax.
To prevent multiple home rule taxation, the use in a home
rule municipality of tangible personal property that is
acquired outside the municipality and caused to be brought
into the municipality by a person who has already paid a home
rule municipal tax in another municipality in respect to the
sale, purchase, or use of that property, shall be exempt to
the extent of the amount of the tax properly due and paid in
the other home rule municipality.
(c) If a municipality having 2,000,000 or more
inhabitants imposes the tax authorized by subsection (a),
then the tax shall be collected by the Illinois Department of
Revenue when the property is purchased at retail from a
retailer in the county in which the home rule municipality
imposing the tax is located, and in all contiguous counties.
The tax shall be remitted to the State, or an exemption
determination must be obtained from the Department before the
title or certificate of registration for the property may be
issued. The tax or proof of exemption may be transmitted to
the Department by way of the State agency with which, or
State officer with whom, the tangible personal property must
be titled or registered if the Department and that agency or
State officer determine that this procedure will expedite the
processing of applications for title or registration.
The Department shall have full power to administer and
enforce this Section to collect all taxes, penalties and
interest due hereunder, to dispose of taxes, penalties and
interest so collected in the manner hereinafter provided, and
determine all rights to credit memoranda or refunds arising
on account of the erroneous payment of tax, penalty or
interest hereunder. In the administration of and compliance
with this Section the Department and persons who are subject
to this Section shall have the same rights, remedies,
privileges, immunities, powers and duties, and be subject to
the same conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure
as are prescribed in Sections 2 (except the definition of
"retailer maintaining a place of business in this State"), 3
(except provisions pertaining to the State rate of tax, and
except provisions concerning collection or refunding of the
tax by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22
of the Use Tax Act, which are not inconsistent with this
Section, as fully as if provisions contained in those
Sections of the Use Tax Act were set forth herein.
Whenever the Department determines that a refund shall 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 such
notification from the Department. Such refund shall be paid
by the State Treasurer out of the home rule municipal
retailers' occupation tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes, penalties and
interest collected hereunder. On or before the 25th day of
each calendar month, the Department shall prepare and certify
to the State Comptroller the disbursement of stated sums of
money to named municipalities, the municipality in each
instance to be that municipality from which the Department
during the second preceding calendar month, collected
municipal use tax from any person whose Illinois address for
titling or registration purposes is given as being in such
municipality. The amount to be paid to each municipality
shall be the amount (not including credit memoranda)
collected hereunder during the second preceding calendar
month by the Department, and not including an amount equal to
the amount of refunds made during the second preceding
calendar month by the Department on behalf of such
municipality, less the amount expended during the second
preceding month by the Department to be paid from the
appropriation to the Department from the Home Rule Municipal
Retailers' Occupation Tax Trust Fund. The appropriation to
cover the costs incurred by the Department in administering
and enforcing this Section shall not exceed 2% of the amount
estimated to be deposited into the Home Rule Municipal
Retailers' Occupation Tax Trust Fund during the fiscal year
for which the appropriation is made. Within 10 days after
receipt by the State Comptroller of the disbursement
certification to the municipalities provided for in this
Section to be given to the State Comptroller by the
Department, the State Comptroller shall cause the orders to
be drawn for the respective amounts in accordance with the
directions contained in that certification.
Any ordinance imposing or discontinuing any tax to be
collected and enforced by the Department under this Section
shall be adopted and a certified copy thereof filed with the
Department on or before October 1, whereupon the Department
of Revenue shall proceed to administer and enforce this
Section on behalf of the municipalities as of January 1 next
following such adoption and filing. Beginning April 1, 1998,
any ordinance imposing or discontinuing any tax to be
collected and enforced by the Department under this Section
shall either (i) be adopted and a certified copy thereof
filed with the Department on or before April 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the municipalities as of July 1
next following the adoption and filing; or (ii) be adopted
and a certified copy thereof filed with the Department on or
before October 1, whereupon the Department of Revenue shall
proceed to administer and enforce this Section on behalf of
the municipalities as of January 1 next following the
adoption and filing.
Nothing in this subsection (c) shall prevent a home rule
municipality from collecting the tax pursuant to subsection
(a) in any situation where such tax is not collected by the
Department of Revenue under this subsection (c).
(d) Any unobligated balance remaining in the Municipal
Retailers' Occupation Tax Fund on December 31, 1989, which
fund was abolished by Public Act 85-1135, and all receipts of
municipal tax as a result of audits of liability periods
prior to January 1, 1990, shall be paid into the Local
Government Tax Fund, for distribution as provided by this
Section prior to the enactment of Public Act 85-1135. All
receipts of municipal tax as a result of an assessment not
arising from an audit, for liability periods prior to January
1, 1990, shall be paid into the Local Government Tax Fund for
distribution before July 1, 1990, as provided by this Section
prior to the enactment of Public Act 85-1135, and on and
after July 1, 1990, all such receipts shall be distributed as
provided in Section 6z-18 of the State Finance Act.
(e) As used in this Section, "Municipal" and
"Municipality" means a city, village or incorporated town,
including an incorporated town which has superseded a civil
township.
(f) This Section shall be known and may be cited as the
Home Rule Municipal Use Tax Act.
(Source: P.A. 90-562, eff. 12-16-97; 90-689, eff. 7-31-98.)
(65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a)
Sec. 8-11-6a. Home rule municipalities; preemption of
certain taxes. Except as provided in Sections 8-11-1,
8-11-5, 8-11-6, and 8-11-6b on and after September 1, 1990,
no home rule municipality has the authority to impose,
pursuant to its home rule authority, a retailer's occupation
tax, service occupation tax, use tax, sales tax or other tax
on the use, sale or purchase of tangible personal property
based on the gross receipts from such sales or the selling or
purchase price of said tangible personal property.
Notwithstanding the foregoing, this Section does not preempt
any home rule imposed tax such as the following: (1) a tax on
alcoholic beverages, whether based on gross receipts, volume
sold or any other measurement; (2) a tax based on the number
of units of cigarettes or tobacco products (provided,
however, that a home rule municipality that has not imposed a
tax based on the number of units of cigarettes or tobacco
products before July 1, 1993, shall not impose such a tax
after that date); (3) a tax, however measured, based on the
use of a hotel or motel room or similar facility; (4) a tax,
however measured, on the sale or transfer of real property;
(5) a tax, however measured, on lease receipts; (6) a tax on
food prepared for immediate consumption and on alcoholic
beverages sold by a business which provides for on premise
consumption of said food or alcoholic beverages; or (7) other
taxes not based on the selling or purchase price or gross
receipts from the use, sale or purchase of tangible personal
property. This Section is not intended to affect any
existing tax on food and beverages prepared for immediate
consumption on the premises where the sale occurs, or any
existing tax on alcoholic beverages, or any existing tax
imposed on the charge for renting a hotel or motel room,
which was in effect January 15, 1988, or any extension of the
effective date of such an existing tax by ordinance of the
municipality imposing the tax, which extension is hereby
authorized, in any non-home rule municipality in which the
imposition of such a tax has been upheld by judicial
determination, nor is this Section intended to preempt the
authority granted by Public Act 85-1006. This Section is a
limitation, pursuant to subsection (g) of Section 6 of
Article VII of the Illinois Constitution, on the power of
home rule units to tax.
(Source: P.A. 88-507; 88-527; 88-670, eff. 12-2-94.)
(65 ILCS 5/8-11-16) (from Ch. 24, par. 8-11-16)
Sec. 8-11-16. The Department of Revenue shall submit to
each municipality each year a list of those persons within
that municipality who are registered with the Department
under the Retailers' Occupation Tax Act.
The list shall indicate the street address of each retail
outlet operated in the municipality by the persons so
registered and the name under which the retailer conducts
business, if different from the corporate name. The
municipal clerk shall forward any changes or corrections to
the list to the Department within 6 months. The Department
shall update and correct its records to reflect such changes,
or notify the municipality in writing that the suggested
changes are erroneous, within 90 days. The Department shall
also provide monthly updates to each municipality showing
additions or deletions to the list of retail outlets within
the municipality. The Department shall provide a copy of the
annual listing herein provided for contiguous jurisdictions
when a municipality so requests. The list required by this
Section shall contain only the names and street addresses of
persons who are registered with the Department and shall not
include the amount of tax paid by such persons. The list
required by this Section shall be provided to each
municipality no later than September 1 annually.
When certifying the amount of a monthly disbursement to a
municipality under Section 8-11-1, 8-11-5, 8-11-6 of this Act
or Section 6z-18 of "An Act in relation to State finance",
the Department shall increase or decrease such amount by an
amount necessary to offset any misallocation of previous
disbursements. The offset amount shall be the amount
erroneously disbursed within the previous 6 months from the
time a misallocation is discovered.
The Department of Revenue must upon the request of any
municipality received pursuant to the provisions of this
paragraph furnish to such municipality data setting forth the
aggregate amount of retailers' occupation tax collected on
behalf of such municipality from any shopping center
identified in such request and located within such
municipality for each month beginning with the first month
following the month within which such a request is received
by the Department, provided that such data may be provided
only with respect to shopping centers (1) which consist of 50
or more persons registered with the Department to pay
Retailers' Occupation Tax, and (2) where the developers or
owners thereof or their predecessors in interest have entered
into written agreements with the municipality to transfer
property to or perform services for or on behalf of such
municipality in exchange for payments based solely or in part
on the amount of retailers' occupation tax collected on
behalf of the municipality from persons within such shopping
centers. Data given pursuant to this paragraph shall not
identify by amounts the individual sources of such taxes. A
request for data pursuant to this paragraph shall first be
submitted to the Department of Revenue by the Municipal
Clerk, City Council or Village Board of Trustees. The
Department of Revenue shall review each such request to
determine whether the requirements of item (2) of the first
sentence of this paragraph have been met and, within 30 days
following its receipt of such a request, shall either certify
that the request meets such requirements, or notify the
person submitting the request that the request does not meet
such requirements.
As used in this Section, "Municipal" or "Municipality"
means or refers to a city, village or incorporated town,
including an incorporated town which has superseded a civil
township, and "shopping center" means a group of retail
stores and other business and service establishments in an
integrated building arrangement operated under common
ownership or diverse ownership under unified control
involving common parking areas and mutual easements.
(Source: P.A. 86-928.)
(65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
which has adopted tax increment allocation financing prior to
January 1, 1987, may by ordinance (1) authorize the
Department of Revenue, subject to appropriation, to annually
certify and cause to be paid from the Illinois Tax Increment
Fund to such municipality for deposit in the municipality's
special tax allocation fund an amount equal to the Net State
Sales Tax Increment and (2) authorize the Department of
Revenue to annually notify the municipality of the amount of
the Municipal Sales Tax Increment which shall be deposited by
the municipality in the municipality's special tax allocation
fund. Provided that for purposes of this Section no
amendments adding additional area to the redevelopment
project area which has been certified as the State Sales Tax
Boundary shall be taken into account if such amendments are
adopted by the municipality after January 1, 1987. If an
amendment is adopted which decreases the area of a State
Sales Tax Boundary, the municipality shall update the list
required by subsection (3)(a) of this Section. The Retailers'
Occupation Tax liability, Use Tax liability, Service
Occupation Tax liability and Service Use Tax liability for
retailers and servicemen located within the disconnected area
shall be excluded from the base from which tax increments are
calculated and the revenue from any such retailer or
serviceman shall not be included in calculating incremental
revenue payable to the municipality. A municipality adopting
an ordinance under this subsection (1) of this Section for a
redevelopment project area which is certified as a State
Sales Tax Boundary shall not be entitled to payments of State
taxes authorized under subsection (2) of this Section for the
same redevelopment project area. Nothing herein shall be
construed to prevent a municipality from receiving payment of
State taxes authorized under subsection (2) of this Section
for a separate redevelopment project area that does not
overlap in any way with the State Sales Tax Boundary
receiving payments of State taxes pursuant to subsection (1)
of this Section.
A certified copy of such ordinance shall be submitted by
the municipality to the Department of Commerce and Community
Affairs and the Department of Revenue not later than 30 days
after the effective date of the ordinance. Upon submission
of the ordinances, and the information required pursuant to
subsection 3 of this Section, the Department of Revenue shall
promptly determine the amount of such taxes paid under the
Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
Act, the Service Occupation Tax Act, the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax
Act by retailers and servicemen on transactions at places
located in the redevelopment project area during the base
year, and shall certify all the foregoing "initial sales tax
amounts" to the municipality within 60 days of submission of
the list required of subsection (3)(a) of this Section.
If a retailer or serviceman with a place of business
located within a redevelopment project area also has one or
more other places of business within the municipality but
outside the redevelopment project area, the retailer or
serviceman shall, upon request of the Department of Revenue,
certify to the Department of Revenue the amount of taxes paid
pursuant to the Retailers' Occupation Tax Act, the Municipal
Retailers' Occupation Tax Act, the Service Occupation Tax Act
and the Municipal Service Occupation Tax Act at each place of
business which is located within the redevelopment project
area in the manner and for the periods of time requested by
the Department of Revenue.
When the municipality determines that a portion of an
increase in the aggregate amount of taxes paid by retailers
and servicemen under the Retailers' Occupation Tax Act, Use
Tax Act, Service Use Tax Act, or the Service Occupation Tax
Act is the result of a retailer or serviceman initiating
retail or service operations in the redevelopment project
area by such retailer or serviceman with a resulting
termination of retail or service operations by such retailer
or serviceman at another location in Illinois in the standard
metropolitan statistical area of such municipality, the
Department of Revenue shall be notified that the retailers
occupation tax liability, use tax liability, service
occupation tax liability, or service use tax liability from
such retailer's or serviceman's terminated operation shall be
included in the base Initial Sales Tax Amounts from which the
State Sales Tax Increment is calculated for purposes of State
payments to the affected municipality; provided, however, for
purposes of this paragraph "termination" shall mean a closing
of a retail or service operation which is directly related to
the opening of the same retail or service operation in a
redevelopment project area which is included within a State
Sales Tax Boundary, but it shall not include retail or
service operations closed for reasons beyond the control of
the retailer or serviceman, as determined by the Department.
If the municipality makes the determination referred to in
the prior paragraph and notifies the Department and if the
relocation is from a location within the municipality, the
Department, at the request of the municipality, shall adjust
the certified aggregate amount of taxes that constitute the
Municipal Sales Tax Increment paid by retailers and
servicemen on transactions at places of business located
within the State Sales Tax Boundary during the base year
using the same procedures as are employed to make the
adjustment referred to in the prior paragraph. The adjusted
Municipal Sales Tax Increment calculated by the Department
shall be sufficient to satisfy the requirements of subsection
(1) of this Section.
When a municipality which has adopted tax increment
allocation financing in 1986 determines that a portion of the
aggregate amount of taxes paid by retailers and servicemen
under the Retailers Occupation Tax Act, Use Tax Act, Service
Use Tax Act, or Service Occupation Tax Act, the Municipal
Retailers' Occupation Tax Act and the Municipal Service
Occupation Tax Act, includes revenue of a retailer or
serviceman which terminated retailer or service operations in
1986, prior to the adoption of tax increment allocation
financing, the Department of Revenue shall be notified by
such municipality that the retailers' occupation tax
liability, use tax liability, service occupation tax
liability or service use tax liability, from such retailer's
or serviceman's terminated operations shall be excluded from
the Initial Sales Tax Amounts for such taxes. The revenue
from any such retailer or serviceman which is excluded from
the base year under this paragraph, shall not be included in
calculating incremental revenues if such retailer or
serviceman reestablishes such business in the redevelopment
project area.
For State fiscal year 1992, the Department of Revenue
shall budget, and the Illinois General Assembly shall
appropriate from the Illinois Tax Increment Fund in the State
treasury, an amount not to exceed $18,000,000 to pay to each
eligible municipality the Net State Sales Tax Increment to
which such municipality is entitled.
Beginning on January 1, 1993, each municipality's
proportional share of the Illinois Tax Increment Fund shall
be determined by adding the annual Net State Sales Tax
Increment and the annual Net Utility Tax Increment to
determine the Annual Total Increment. The ratio of the Annual
Total Increment of each municipality to the Annual Total
Increment for all municipalities, as most recently calculated
by the Department, shall determine the proportional shares of
the Illinois Tax Increment Fund to be distributed to each
municipality.
Beginning in October, 1993, and each January, April, July
and October thereafter, the Department of Revenue shall
certify to the Treasurer and the Comptroller the amounts
payable quarter annually during the fiscal year to each
municipality under this Section. The Comptroller shall
promptly then draw warrants, ordering the State Treasurer to
pay such amounts from the Illinois Tax Increment Fund in the
State treasury.
The Department of Revenue shall utilize the same periods
established for determining State Sales Tax Increment to
determine the Municipal Sales Tax Increment for the area
within a State Sales Tax Boundary and certify such amounts to
such municipal treasurer who shall transfer such amounts to
the special tax allocation fund.
The provisions of this subsection (1) do not apply to
additional municipal retailers' occupation or service
occupation taxes imposed by municipalities using their home
rule powers or imposed pursuant to Sections 8-11-1.3,
8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
receive from the State any share of the Illinois Tax
Increment Fund unless such municipality deposits all its
Municipal Sales Tax Increment and the local incremental real
property tax revenues, as provided herein, into the
appropriate special tax allocation fund. A municipality
located within an economic development project area created
under the County Economic Development Project Area Property
Tax Allocation Act which has abated any portion of its
property taxes which otherwise would have been deposited in
its special tax allocation fund shall not receive from the
State the Net Sales Tax Increment.
(2) A municipality which has adopted tax increment
allocation financing with regard to an industrial park or
industrial park conservation area, prior to January 1, 1988,
may by ordinance authorize the Department of Revenue to
annually certify and pay from the Illinois Tax Increment Fund
to such municipality for deposit in the municipality's
special tax allocation fund an amount equal to the Net State
Utility Tax Increment. Provided that for purposes of this
Section no amendments adding additional area to the
redevelopment project area shall be taken into account if
such amendments are adopted by the municipality after January
1, 1988. Municipalities adopting an ordinance under this
subsection (2) of this Section for a redevelopment project
area shall not be entitled to payment of State taxes
authorized under subsection (1) of this Section for the same
redevelopment project area which is within a State Sales Tax
Boundary. Nothing herein shall be construed to prevent a
municipality from receiving payment of State taxes authorized
under subsection (1) of this Section for a separate
redevelopment project area within a State Sales Tax Boundary
that does not overlap in any way with the redevelopment
project area receiving payments of State taxes pursuant to
subsection (2) of this Section.
A certified copy of such ordinance shall be submitted to
the Department of Commerce and Community Affairs and the
Department of Revenue not later than 30 days after the
effective date of the ordinance.
When a municipality determines that a portion of an
increase in the aggregate amount of taxes paid by industrial
or commercial facilities under the Public Utilities Act, is
the result of an industrial or commercial facility initiating
operations in the redevelopment project area with a resulting
termination of such operations by such industrial or
commercial facility at another location in Illinois, the
Department of Revenue shall be notified by such municipality
that such industrial or commercial facility's liability under
the Public Utility Tax Act shall be included in the base from
which tax increments are calculated for purposes of State
payments to the affected municipality.
After receipt of the calculations by the public utility
as required by subsection (4) of this Section, the Department
of Revenue shall annually budget and the Illinois General
Assembly shall annually appropriate from the General Revenue
Fund through State Fiscal Year 1989, and thereafter from the
Illinois Tax Increment Fund, an amount sufficient to pay to
each eligible municipality the amount of incremental revenue
attributable to State electric and gas taxes as reflected by
the charges imposed on persons in the project area to which
such municipality is entitled by comparing the preceding
calendar year with the base year as determined by this
Section. Beginning on January 1, 1993, each municipality's
proportional share of the Illinois Tax Increment Fund shall
be determined by adding the annual Net State Utility Tax
Increment and the annual Net Utility Tax Increment to
determine the Annual Total Increment. The ratio of the Annual
Total Increment of each municipality to the Annual Total
Increment for all municipalities, as most recently calculated
by the Department, shall determine the proportional shares of
the Illinois Tax Increment Fund to be distributed to each
municipality.
A municipality shall not receive any share of the
Illinois Tax Increment Fund from the State unless such
municipality imposes the maximum municipal charges authorized
pursuant to Section 9-221 of the Public Utilities Act and
deposits all municipal utility tax incremental revenues as
certified by the public utilities, and all local real estate
tax increments into such municipality's special tax
allocation fund.
(3) Within 30 days after the adoption of the ordinance
required by either subsection (1) or subsection (2) of this
Section, the municipality shall transmit to the Department of
Commerce and Community Affairs and the Department of Revenue
the following:
(a) if applicable, a certified copy of the
ordinance required by subsection (1) accompanied by a
complete list of street names and the range of street
numbers of each street located within the redevelopment
project area for which payments are to be made under this
Section in both the base year and in the year preceding
the payment year; and the addresses of persons registered
with the Department of Revenue; and, the name under which
each such retailer or serviceman conducts business at
that address, if different from the corporate name; and
the Illinois Business Tax Number of each such person (The
municipality shall update this list in the event of a
revision of the redevelopment project area, or the
opening or closing or name change of any street or part
thereof in the redevelopment project area, or if the
Department of Revenue informs the municipality of an
addition or deletion pursuant to the monthly updates
given by the Department.);
(b) if applicable, a certified copy of the
ordinance required by subsection (2) accompanied by a
complete list of street names and range of street numbers
of each street located within the redevelopment project
area, the utility customers in the project area, and the
utilities serving the redevelopment project areas;
(c) certified copies of the ordinances approving
the redevelopment plan and designating the redevelopment
project area;
(d) a copy of the redevelopment plan as approved by
the municipality;
(e) an opinion of legal counsel that the
municipality had complied with the requirements of this
Act; and
(f) a certification by the chief executive officer
of the municipality that with regard to a redevelopment
project area: (1) the municipality has committed all of
the municipal tax increment created pursuant to this Act
for deposit in the special tax allocation fund, (2) the
redevelopment projects described in the redevelopment
plan would not be completed without the use of State
incremental revenues pursuant to this Act, (3) the
municipality will pursue the implementation of the
redevelopment plan in an expeditious manner, (4) the
incremental revenues created pursuant to this Section
will be exclusively utilized for the development of the
redevelopment project area, and (5) the increased revenue
created pursuant to this Section shall be used
exclusively to pay redevelopment project costs as defined
in this Act.
(4) The Department of Revenue upon receipt of the
information set forth in paragraph (b) of subsection (3)
shall immediately forward such information to each public
utility furnishing natural gas or electricity to buildings
within the redevelopment project area. Upon receipt of such
information, each public utility shall promptly:
(a) provide to the Department of Revenue and the
municipality separate lists of the names and addresses of
persons within the redevelopment project area receiving
natural gas or electricity from such public utility.
Such list shall be updated as necessary by the public
utility. Each month thereafter the public utility shall
furnish the Department of Revenue and the municipality
with an itemized listing of charges imposed pursuant to
Sections 9-221 and 9-222 of the Public Utilities Act on
persons within the redevelopment project area.
(b) determine the amount of charges imposed
pursuant to Sections 9-221 and 9-222 of the Public
Utilities Act on persons in the redevelopment project
area during the base year, both as a result of municipal
taxes on electricity and gas and as a result of State
taxes on electricity and gas and certify such amounts
both to the municipality and the Department of Revenue;
and
(c) determine the amount of charges imposed
pursuant to Sections 9-221 and 9-222 of the Public
Utilities Act on persons in the redevelopment project
area on a monthly basis during the base year, both as a
result of State and municipal taxes on electricity and
gas and certify such separate amounts both to the
municipality and the Department of Revenue.
After the determinations are made in paragraphs (b) and
(c), the public utility shall monthly during the existence of
the redevelopment project area notify the Department of
Revenue and the municipality of any increase in charges over
the base year determinations made pursuant to paragraphs (b)
and (c).
(5) The payments authorized under this Section shall be
deposited by the municipal treasurer in the special tax
allocation fund of the municipality, which for accounting
purposes shall identify the sources of each payment as:
municipal receipts from the State retailers occupation,
service occupation, use and service use taxes; and municipal
public utility taxes charged to customers under the Public
Utilities Act and State public utility taxes charged to
customers under the Public Utilities Act.
(6) Any municipality receiving payments authorized under
this Section for any redevelopment project area or area
within a State Sales Tax Boundary within the municipality
shall submit to the Department of Revenue and to the taxing
districts which are sent the notice required by Section 6 of
this Act annually within 180 days after the close of each
municipal fiscal year the following information for the
immediately preceding fiscal year:
(a) Any amendments to the redevelopment plan, the
redevelopment project area, or the State Sales Tax
Boundary.
(b) Audited financial statements of the special tax
allocation fund.
(c) Certification of the Chief Executive Officer of
the municipality that the municipality has complied with
all of the requirements of this Act during the preceding
fiscal year.
(d) An opinion of legal counsel that the
municipality is in compliance with this Act.
(e) An analysis of the special tax allocation fund
which sets forth:
(1) the balance in the special tax allocation
fund at the beginning of the fiscal year;
(2) all amounts deposited in the special tax
allocation fund by source;
(3) all expenditures from the special tax
allocation fund by category of permissible
redevelopment project cost; and
(4) the balance in the special tax allocation
fund at the end of the fiscal year including a
breakdown of that balance by source. Such ending
balance shall be designated as surplus if it is not
required for anticipated redevelopment project costs
or to pay debt service on bonds issued to finance
redevelopment project costs, as set forth in Section
11-74.4-7 hereof.
(f) A description of all property purchased by the
municipality within the redevelopment project area
including
1. Street address
2. Approximate size or description of property
3. Purchase price
4. Seller of property.
(g) A statement setting forth all activities
undertaken in furtherance of the objectives of the
redevelopment plan, including:
1. Any project implemented in the preceding
fiscal year
2. A description of the redevelopment
activities undertaken
3. A description of any agreements entered
into by the municipality with regard to the
disposition or redevelopment of any property within
the redevelopment project area or the area within
the State Sales Tax Boundary.
(h) With regard to any obligations issued by the
municipality:
1. copies of bond ordinances or resolutions
2. copies of any official statements
3. an analysis prepared by financial advisor
or underwriter setting forth: (a) nature and term of
obligation; and (b) projected debt service including
required reserves and debt coverage.
(i) A certified audit report reviewing compliance
with this statute performed by an independent public
accountant certified and licensed by the authority of the
State of Illinois. The financial portion of the audit
must be conducted in accordance with Standards for Audits
of Governmental Organizations, Programs, Activities, and
Functions adopted by the Comptroller General of the
United States (1981), as amended. The audit report shall
contain a letter from the independent certified public
accountant indicating compliance or noncompliance with
the requirements of subsection (q) of Section 11-74.4-3.
If the audit indicates that expenditures are not in
compliance with the law, the Department of Revenue shall
withhold State sales and utility tax increment payments
to the municipality until compliance has been reached,
and an amount equal to the ineligible expenditures has
been returned to the Special Tax Allocation Fund.
(6.1) After July 29, 1988, any funds which have not been
designated for use in a specific development project in the
annual report shall be designated as surplus. No funds may be
held in the Special Tax Allocation Fund for more than 36
months from the date of receipt unless the money is required
for payment of contractual obligations for specific
development project costs. If held for more than 36 months in
violation of the preceding sentence, such funds shall be
designated as surplus. Any funds designated as surplus must
first be used for early redemption of any bond obligations.
Any funds designated as surplus which are not disposed of as
otherwise provided in this paragraph, shall be distributed as
surplus as provided in Section 11-74.4-7.
(7) Any appropriation made pursuant to this Section for
the 1987 State fiscal year shall not exceed the amount of $7
million and for the 1988 State fiscal year the amount of $10
million. The amount which shall be distributed to each
municipality shall be the incremental revenue to which each
municipality is entitled as calculated by the Department of
Revenue, unless the requests of the municipality exceed the
appropriation, then the amount to which each municipality
shall be entitled shall be prorated among the municipalities
in the same proportion as the increment to which the
municipality would be entitled bears to the total increment
which all municipalities would receive in the absence of this
limitation, provided that no municipality may receive an
amount in excess of 15% of the appropriation. For the 1987
Net State Sales Tax Increment payable in Fiscal Year 1989, no
municipality shall receive more than 7.5% of the total
appropriation; provided, however, that any of the
appropriation remaining after such distribution shall be
prorated among municipalities on the basis of their pro rata
share of the total increment. Beginning on January 1, 1993,
each municipality's proportional share of the Illinois Tax
Increment Fund shall be determined by adding the annual Net
State Sales Tax Increment and the annual Net Utility Tax
Increment to determine the Annual Total Increment. The ratio
of the Annual Total Increment of each municipality to the
Annual Total Increment for all municipalities, as most
recently calculated by the Department, shall determine the
proportional shares of the Illinois Tax Increment Fund to be
distributed to each municipality.
(7.1) No distribution of Net State Sales Tax Increment
to a municipality for an area within a State Sales Tax
Boundary shall exceed in any State Fiscal Year an amount
equal to 3 times the sum of the Municipal Sales Tax
Increment, the real property tax increment and deposits of
funds from other sources, excluding state and federal funds,
as certified by the city treasurer to the Department of
Revenue for an area within a State Sales Tax Boundary. After
July 29, 1988, for those municipalities which issue bonds
between June 1, 1988 and 3 years from July 29, 1988 to
finance redevelopment projects within the area in a State
Sales Tax Boundary, the distribution of Net State Sales Tax
Increment during the 16th through 20th years from the date of
issuance of the bonds shall not exceed in any State Fiscal
Year an amount equal to 2 times the sum of the Municipal
Sales Tax Increment, the real property tax increment and
deposits of funds from other sources, excluding State and
federal funds.
(8) Any person who knowingly files or causes to be filed
false information for the purpose of increasing the amount of
any State tax incremental revenue commits a Class A
misdemeanor.
(9) The following procedures shall be followed to
determine whether municipalities have complied with the Act
for the purpose of receiving distributions after July 1, 1989
pursuant to subsection (1) of this Section 11-74.4-8a.
(a) The Department of Revenue shall conduct a
preliminary review of the redevelopment project areas and
redevelopment plans pertaining to those municipalities
receiving payments from the State pursuant to subsection
(1) of Section 8a of this Act for the purpose of
determining compliance with the following standards:
(1) For any municipality with a population of
more than 12,000 as determined by the 1980 U.S.
Census: (a) the redevelopment project area, or in
the case of a municipality which has more than one
redevelopment project area, each such area, must be
contiguous and the total of all such areas shall not
comprise more than 25% of the area within the
municipal boundaries nor more than 20% of the
equalized assessed value of the municipality; (b)
the aggregate amount of 1985 taxes in the
redevelopment project area, or in the case of a
municipality which has more than one redevelopment
project area, the total of all such areas, shall be
not more than 25% of the total base year taxes paid
by retailers and servicemen on transactions at
places of business located within the municipality
under the Retailers' Occupation Tax Act, the Use Tax
Act, the Service Use Tax Act, and the Service
Occupation Tax Act. Redevelopment project areas
created prior to 1986 are not subject to the above
standards if their boundaries were not amended in
1986.
(2) For any municipality with a population of
12,000 or less as determined by the 1980 U.S.
Census: (a) the redevelopment project area, or in
the case of a municipality which has more than one
redevelopment project area, each such area, must be
contiguous and the total of all such areas shall not
comprise more than 35% of the area within the
municipal boundaries nor more than 30% of the
equalized assessed value of the municipality; (b)
the aggregate amount of 1985 taxes in the
redevelopment project area, or in the case of a
municipality which has more than one redevelopment
project area, the total of all such areas, shall not
be more than 35% of the total base year taxes paid
by retailers and servicemen on transactions at
places of business located within the municipality
under the Retailers' Occupation Tax Act, the Use Tax
Act, the Service Use Tax Act, and the Service
Occupation Tax Act. Redevelopment project areas
created prior to 1986 are not subject to the above
standards if their boundaries were not amended in
1986.
(3) Such preliminary review of the
redevelopment project areas applying the above
standards shall be completed by November 1, 1988,
and on or before November 1, 1988, the Department
shall notify each municipality by certified mail,
return receipt requested that either (1) the
Department requires additional time in which to
complete its preliminary review; or (2) the
Department is issuing either (a) a Certificate of
Eligibility or (b) a Notice of Review. If the
Department notifies a municipality that it requires
additional time to complete its preliminary
investigation, it shall complete its preliminary
investigation no later than February 1, 1989, and by
February 1, 1989 shall issue to each municipality
either (a) a Certificate of Eligibility or (b) a
Notice of Review. A redevelopment project area for
which a Certificate of Eligibility has been issued
shall be deemed a "State Sales Tax Boundary."
(4) The Department of Revenue shall also issue
a Notice of Review if the Department has received a
request by November 1, 1988 to conduct such a review
from taxpayers in the municipality, local taxing
districts located in the municipality or the State
of Illinois, or if the redevelopment project area
has more than 5 retailers and has had growth in
State sales tax revenue of more than 15% from
calendar year 1985 to 1986.
(b) For those municipalities receiving a Notice of
Review, the Department will conduct a secondary review
consisting of: (i) application of the above standards
contained in subsection (9)(a)(1)(a) and (b) or
(9)(a)(2)(a) and (b), and (ii) the definitions of
blighted and conservation area provided for in Section
11-74.4-3. Such secondary review shall be completed by
July 1, 1989.
Upon completion of the secondary review, the
Department will issue (a) a Certificate of Eligibility or
(b) a Preliminary Notice of Deficiency. Any municipality
receiving a Preliminary Notice of Deficiency may amend
its redevelopment project area to meet the standards and
definitions set forth in this paragraph (b). This amended
redevelopment project area shall become the "State Sales
Tax Boundary" for purposes of determining the State Sales
Tax Increment.
(c) If the municipality advises the Department of
its intent to comply with the requirements of paragraph
(b) of this subsection outlined in the Preliminary Notice
of Deficiency, within 120 days of receiving such notice
from the Department, the municipality shall submit
documentation to the Department of the actions it has
taken to cure any deficiencies. Thereafter, within 30
days of the receipt of the documentation, the Department
shall either issue a Certificate of Eligibility or a
Final Notice of Deficiency. If the municipality fails to
advise the Department of its intent to comply or fails to
submit adequate documentation of such cure of
deficiencies the Department shall issue a Final Notice of
Deficiency that provides that the municipality is
ineligible for payment of the Net State Sales Tax
Increment.
(d) If the Department issues a final determination
of ineligibility, the municipality shall have 30 days
from the receipt of determination to protest and request
a hearing. Such hearing shall be conducted in accordance
with Sections 10-25, 10-35, 10-40, and 10-50 of the
Illinois Administrative Procedure Act. The decision
following the hearing shall be subject to review under
the Administrative Review Law.
(e) Any Certificate of Eligibility issued pursuant
to this subsection 9 shall be binding only on the State
for the purposes of establishing municipal eligibility to
receive revenue pursuant to subsection (1) of this
Section 11-74.4-8a.
(f) It is the intent of this subsection that the
periods of time to cure deficiencies shall be in addition
to all other periods of time permitted by this Section,
regardless of the date by which plans were originally
required to be adopted. To cure said deficiencies,
however, the municipality shall be required to follow the
procedures and requirements pertaining to amendments, as
provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
(10) If a municipality adopts a State Sales Tax Boundary
in accordance with the provisions of subsection (9) of this
Section, such boundaries shall subsequently be utilized to
determine Revised Initial Sales Tax Amounts and the Net State
Sales Tax Increment; provided, however, that such revised
State Sales Tax Boundary shall not have any effect upon the
boundary of the redevelopment project area established for
the purposes of determining the ad valorem taxes on real
property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
Act nor upon the municipality's authority to implement the
redevelopment plan for that redevelopment project area. For
any redevelopment project area with a smaller State Sales Tax
Boundary within its area, the municipality may annually elect
to deposit the Municipal Sales Tax Increment for the
redevelopment project area in the special tax allocation fund
and shall certify the amount to the Department prior to
receipt of the Net State Sales Tax Increment. Any
municipality required by subsection (9) to establish a State
Sales Tax Boundary for one or more of its redevelopment
project areas shall submit all necessary information required
by the Department concerning such boundary and the retailers
therein, by October 1, 1989, after complying with the
procedures for amendment set forth in Sections 11-74.4-5 and
11-74.4-6 of this Act. Net State Sales Tax Increment
produced within the State Sales Tax Boundary shall be spent
only within that area. However expenditures of all municipal
property tax increment and municipal sales tax increment in a
redevelopment project area are not required to be spent
within the smaller State Sales Tax Boundary within such
redevelopment project area.
(11) The Department of Revenue shall have the authority
to issue rules and regulations for purposes of this Section.
and regulations for purposes of this Section.
(12) If, under Section 5.4.1 of the Illinois Enterprise
Zone Act, a municipality determines that property that lies
within a State Sales Tax Boundary has an improvement,
rehabilitation, or renovation that is entitled to a property
tax abatement, then that property along with any
improvements, rehabilitation, or renovations shall be
immediately removed from any State Sales Tax Boundary. The
municipality that made the determination shall notify the
Department of Revenue within 30 days after the determination.
Once a property is removed from the State Sales Tax Boundary
because of the existence of a property tax abatement
resulting from an enterprise zone, then that property shall
not be permitted to be amended into a State Sales Tax
Boundary.
(Source: P.A. 90-258, eff. 7-30-97.)
Section 155. The Local Mass Transit District Act is
amended by re-enacting Section 5.01 as follows:
(70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
Sec. 5.01. Metro East Mass Transit District; use and
occupation taxes.
(a) The Board of Trustees of any Metro East Mass Transit
District may, by ordinance adopted with the concurrence of
two-thirds of the then trustees, impose throughout the
District any or all of the taxes and fees provided in this
Section. All taxes and fees imposed under this Section shall
be used only for public mass transportation systems, and the
amount used to provide mass transit service to unserved areas
of the District shall be in the same proportion to the total
proceeds as the number of persons residing in the unserved
areas is to the total population of the District. Except as
otherwise provided in this Act, taxes imposed under this
Section and civil penalties imposed incident thereto shall be
collected and enforced by the State Department of Revenue.
The Department shall have the power to administer and enforce
the taxes and to determine all rights for refunds for
erroneous payments of the taxes.
(b) The Board may impose a Metro East Mass Transit
District Retailers' Occupation Tax upon all persons engaged
in the business of selling tangible personal property at
retail in the district at a rate of 1/4 of 1%, or as
authorized under subsection (d-5) of this Section, of the
gross receipts from the sales made in the course of such
business within the district. The tax imposed under this
Section and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the State
Department of Revenue. The Department shall have full power
to administer and enforce this Section; to collect all 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 Section, the Department and persons who are subject to
this Section shall have the same rights, remedies,
privileges, immunities, powers and duties, and be subject to
the same conditions, restrictions, limitations, penalties,
exclusions, exemptions and definitions of terms and employ
the same modes of procedure, as are prescribed in Sections 1,
1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect
to all provisions therein other than the State rate of tax),
2c, 3 (except as to the disposition of taxes and penalties
collected), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the
Retailers' 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 Section may
reimburse themselves for their seller's tax liability
hereunder by separately stating the tax as an additional
charge, which charge may be stated in combination, in a
single amount, with State taxes that sellers are required to
collect under the 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 Section 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 Metro East Mass Transit
District tax fund established under paragraph (g) of this
Section.
If a tax is imposed under this subsection (b), a tax
shall also be imposed under subsections (c) and (d) of this
Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale, by a
producer of coal or other 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 other 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
Federal Constitution as a sale in interstate or foreign
commerce.
Nothing in this Section shall be construed to authorize
the Metro East Mass Transit District 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 this State.
(c) If a tax has been imposed under subsection (b), a
Metro East Mass Transit District Service Occupation Tax shall
also be imposed upon all persons engaged, in the district, in
the business of making sales of service, who, as an incident
to making those sales of service, transfer tangible personal
property within the District, either in the form of tangible
personal property or in the form of real estate as an
incident to a sale of service. The tax rate shall be 1/4%, or
as authorized under subsection (d-5) of this Section, of the
selling price of tangible personal property so transferred
within the district. The tax imposed under this paragraph
and all civil penalties that may be assessed as an incident
thereof shall be collected and enforced by the State
Department of Revenue. The Department shall have full power
to administer and enforce this paragraph; 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 paragraph,
the Department and persons who are subject to this paragraph
shall have the same rights, remedies, privileges, immunities,
powers and duties, and be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions
and definitions of terms and employ the same modes of
procedure as are prescribed in Sections 1a-1, 2 (except that
the reference to State in the definition of supplier
maintaining a place of business in this State shall mean the
Authority), 2a, 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 Authority), 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
District), 9 (except as to the disposition of taxes and
penalties collected, and except that the returned merchandise
credit for this tax may not be taken against any State tax),
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 District), the first paragraph of
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 paragraph may reimburse themselves for their
serviceman's tax liability hereunder 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 paragraph 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 Metro East Mass Transit
District tax fund established under paragraph (g) of this
Section.
Nothing in this paragraph shall be construed to authorize
the District 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.
(d) If a tax has been imposed under subsection (b), a
Metro East Mass Transit District Use Tax shall also be
imposed upon the privilege of using, in the district, any
item of tangible personal property that is purchased outside
the district at retail from a retailer, and that is titled or
registered with an agency of this State's government, at a
rate of 1/4%, or as authorized under subsection (d-5) of this
Section, of the selling price of the tangible personal
property within the District, as "selling price" is defined
in the Use Tax Act. The tax shall be collected from persons
whose Illinois address for titling or registration purposes
is given as being in the District. The tax shall be
collected by the Department of Revenue for the Metro East
Mass Transit District. The tax must be paid to the State, or
an exemption determination must be obtained from the
Department of Revenue, before the title or certificate of
registration for the property may be issued. The tax or
proof of exemption may be transmitted to the Department by
way of the State agency with which, or the State officer with
whom, the tangible personal property must be titled or
registered if the Department and the State agency or State
officer determine that this procedure will expedite the
processing of applications for title or registration.
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties and
interest due hereunder; to dispose of taxes, penalties and
interest so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda or refunds
arising on account of the erroneous payment of tax, penalty
or interest hereunder. In the administration of, and
compliance with, this paragraph, the Department and persons
who are subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms
and employ the same modes of procedure, as are prescribed in
Sections 2 (except the definition of "retailer maintaining a
place of business in this State"), 3 through 3-80 (except
provisions pertaining to the State rate of tax, and except
provisions concerning collection or refunding of the tax by
retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
pertaining to claims by retailers and except the last
paragraph concerning refunds), 20, 21 and 22 of the Use Tax
Act and Section 3-7 of the Uniform Penalty and Interest Act,
that are not inconsistent with this paragraph, as fully as if
those provisions were set forth herein.
Whenever the Department determines that a refund should
be made under this paragraph 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 Metro East Mass Transit
District tax fund established under paragraph (g) of this
Section.
(d-5) The county board of any county participating in
the Metro East Mass Transit District may authorize, by
ordinance, a referendum on the question of whether the tax
rates for the Metro East Mass Transit District Retailers'
Occupation Tax, the Metro East Mass Transit District Service
Occupation Tax, and the Metro East Mass Transit District Use
Tax for the District should be increased from 0.25% to 0.75%.
Upon adopting the ordinance, the county board shall certify
the proposition to the proper election officials who shall
submit the proposition to the voters of the District at the
next election, in accordance with the general election law.
The proposition shall be in substantially the following
form:
Shall the tax rates for the Metro East Mass Transit
District Retailers' Occupation Tax, the Metro East Mass
Transit District Service Occupation Tax, and the Metro
East Mass Transit District Use Tax be increased from
0.25% to 0.75%?
The votes shall be recorded as "YES" or "NO". If a
majority of all votes cast on the proposition are for the
increase in the tax rates, the Metro East Mass Transit
District shall begin imposing the increased rates in the
District, and the Department of Revenue shall begin
collecting the increased amounts, as provided under this
Section. An ordinance imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the
Department on or before the first day of October, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of January next following the
adoption and filing.
If the voters have approved a referendum under this
subsection, before November 1, 1994, to increase the tax rate
under this subsection, the Metro East Mass Transit District
Board of Trustees may adopt by a majority vote an ordinance
at any time before January 1, 1995 that excludes from the
rate increase tangible personal property that is titled or
registered with an agency of this State's government. The
ordinance excluding titled or registered tangible personal
property from the rate increase must be filed with the
Department at least 15 days before its effective date. At any
time after adopting an ordinance excluding from the rate
increase tangible personal property that is titled or
registered with an agency of this State's government, the
Metro East Mass Transit District Board of Trustees may adopt
an ordinance applying the rate increase to that tangible
personal property. The ordinance shall be adopted, and a
certified copy of that ordinance shall be filed with the
Department, on or before October 1, whereupon the Department
shall proceed to administer and enforce the rate increase
against tangible personal property titled or registered with
an agency of this State's government as of the following
January 1. After December 31, 1995, any reimposed rate
increase in effect under this subsection shall no longer
apply to tangible personal property titled or registered with
an agency of this State's government. Beginning January 1,
1996, the Board of Trustees of any Metro East Mass Transit
District may never reimpose a previously excluded tax rate
increase on tangible personal property titled or registered
with an agency of this State's government.
(d-6) If the Board of Trustees of any Metro East Mass
Transit District has imposed a rate increase under subsection
(d-5) and filed an ordinance with the Department of Revenue
excluding titled property from the higher rate, then that
Board may, by ordinance adopted with the concurrence of
two-thirds of the then trustees, impose throughout the
District a fee. The fee on the excluded property shall not
exceed $20 per retail transaction or an amount equal to the
amount of tax excluded, whichever is less, on tangible
personal property that is titled or registered with an agency
of this State's government. The Board of Trustees of any
Metro East Mass Transit District shall have full power to
administer and enforce this subsection and to determine all
rights to credit memoranda or refunds arising on account of
the erroneous payment of the fee hereunder. The Board shall
proceed to administer and enforce this subsection as of the
first day of the second month following the adoption of the
ordinance.
(d-7) If a fee has been imposed under subsection (d-6),
a fee shall also be imposed upon the privilege of using, in
the district, any item of tangible personal property that is
titled or registered with any agency of this State's
government, in an amount equal to the amount of the fee
imposed under subsection (d-6). The Board of Trustees of any
Metro East Mass Transit District shall have full power to
administer and enforce this subsection and to determine all
rights to credit memoranda or refunds arising on account of
the erroneous payment of the fee hereunder. The Board shall
proceed to administer and enforce this subsection
concurrently with the administration of the fee imposed under
subsection (d-6).
(d-8) No item of titled property shall be subject to
both the higher rate approved by referendum, as authorized
under subsection (d-5), and any fee imposed under subsection
(d-6) or (d-7).
(d-9) If fees have been imposed under subsections (d-6)
and (d-7), the Board shall forward a copy of the ordinance
adopting such fees, which shall include all zip codes in
whole or in part within the boundaries of the district, to
the Secretary of State within thirty days. By the 25th of
each month, the Secretary of State shall subsequently provide
the Board with a list of identifiable retail transactions
subject to the .25% rate occurring within the zip codes which
are in whole or in part within the boundaries of the district
and a list of title applications for addresses within the
boundaries of the district for the previous month.
(d-10) In the event that a retailer fails to pay
applicable fees within 30 days of the date of the
transaction, a penalty shall be assessed at the rate of 25%
of the amount of fees. Interest on both late fees and
penalties shall be assessed at the rate of 1% per month. All
fees, penalties, and attorney fees shall constitute a lien on
the personal and real property of the retailer. The Board of
Trustees of any Metro East Transit District shall have full
power to administer and enforce this subsection.
(e) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (c) or (d)
of this Section and no additional registration shall be
required under the tax. A certificate issued under the Use
Tax Act or the Service Use Tax Act shall be applicable with
regard to any tax imposed under paragraph (c) of this
Section.
(f) The Board may impose a replacement vehicle tax of
$50 on any passenger car, as defined in Section 1-157 of the
Illinois Vehicle Code, purchased within the district area by
or on behalf of an insurance company to replace a passenger
car of an insured person in settlement of a total loss claim.
The tax imposed may not become effective before the first day
of the month following the passage of the ordinance imposing
the tax and receipt of a certified copy of the ordinance by
the Department of Revenue. The Department of Revenue shall
collect the tax for the district in accordance with Sections
3-2002 and 3-2003 of the Illinois Vehicle Code.
The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes collected
hereunder. 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 named districts,
the districts to be those from which retailers have paid
taxes or penalties hereunder to the Department during the
second preceding calendar month. The amount to be paid to
each district shall be the amount collected hereunder during
the second preceding calendar month by the Department, less
any amount determined by the Department to be necessary for
the payment of refunds. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
districts, 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 the directions contained in the
certification.
(g) Any ordinance imposing or discontinuing any tax
under this Section shall be adopted and a certified copy
thereof filed with the Department on or before June 1,
whereupon the Department of Revenue shall proceed to
administer and enforce this Section on behalf of the Metro
East Mass Transit District as of September 1 next following
such adoption and filing. Beginning January 1, 1992, an
ordinance or resolution imposing or discontinuing the tax
hereunder shall be adopted and a certified copy thereof filed
with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1,
1993, except as provided in subsection (d-5) of this Section,
an ordinance or resolution imposing or discontinuing the tax
hereunder shall be adopted and a certified copy thereof filed
with the Department on or before the first day of October,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of January next
following such adoption and filing.
(h) The State Department of Revenue shall, upon
collecting any taxes as provided in this Section, pay the
taxes over to the State Treasurer as trustee for the
District. The taxes shall be held in a trust fund outside the
State Treasury. On or before the 25th day of each calendar
month, the State Department of Revenue shall prepare and
certify to the Comptroller of the State of Illinois the
amount to be paid to the District, which shall be the then
balance in the fund, less any amount determined by the
Department to be necessary for the payment of refunds. Within
10 days after receipt by the Comptroller of the certification
of the amount to be paid to the District, the Comptroller
shall cause an order to be drawn for payment for the amount
in accordance with the direction in the certification.
(Source: P.A. 88-115; 88-672, eff. 12-14-94; 89-436, eff.
1-1-96; 89-705, eff. 1-31-97.)
Section 160. The Regional Transportation Authority Act
is amended by re-enacting Sections 4.01, 4.03, 4.04, and 4.09
follows:
(70 ILCS 3615/4.01) (from Ch. 111 2/3, par. 704.01)
Sec. 4.01. Budget and Program.
(a) The Board shall control the finances of the
Authority. It shall by ordinance appropriate money to perform
the Authority's purposes and provide for payment of debts and
expenses of the Authority. Each year the Authority shall
prepare and publish a comprehensive annual budget and program
document describing the state of the Authority and presenting
for the forthcoming fiscal year the Authority's plans for
such operations and capital expenditures as the Authority
intends to undertake and the means by which it intends to
finance them. The proposed program and budget shall contain a
statement of the funds estimated to be on hand at the
beginning of the fiscal year, the funds estimated to be
received from all sources for such year and the funds
estimated to be on hand at the end of such year. After
adoption of the Authority's first Five-Year Program, as
provided in Section 2.01 of this Act, the proposed program
and budget shall specifically identify any respect in which
the recommended program deviates from the Authority's then
existing Five-Year Program, giving the reasons for such
deviation. The fiscal year of the Authority shall begin on
January 1st and end on the succeeding December 31st except
that the fiscal year that began October 1, 1982, shall end
December 31, 1983. By July 1st 1981 and July 1st of each
year thereafter the Director of the Illinois Bureau of the
Budget shall submit to the Authority an estimate of revenues
for the next fiscal year to be collected from the taxes
imposed by the Authority and the amounts to be available in
the Public Transportation Fund and the Regional
Transportation Authority Occupation and Use Tax Replacement
Fund. For the fiscal year ending on December 31, 1983, the
Board shall report its results from operations and financial
condition to the General Assembly and the Governor by January
31. For the fiscal year beginning January 1, 1984, and
thereafter, the budget and program shall be presented to the
General Assembly and the Governor not later than the
preceding December 31st. Before the proposed budget and
program is adopted, the Authority shall hold at least one
public hearing thereon in the metropolitan region. The Board
shall hold at least one meeting for consideration of the
proposed program and budget with the county board of each of
the several counties in the metropolitan region. After
conducting such hearings and holding such meetings and after
making such changes in the proposed program and budget as the
Board deems appropriate, the Board shall adopt its annual
budget ordinance. The ordinance may be adopted only upon the
affirmative votes of 9 of its then Directors. The ordinance
shall appropriate such sums of money as are deemed necessary
to defray all necessary expenses and obligations of the
Authority, specifying purposes and the objects or programs
for which appropriations are made and the amount appropriated
for each object or program. Additional appropriations,
transfers between items and other changes in such ordinance
may be made from time to time by the Board upon the
affirmative votes of 9 of its then Directors.
(b) The budget shall show a balance between anticipated
revenues from all sources and anticipated expenses including
funding of operating deficits or the discharge of
encumbrances incurred in prior periods and payment of
principal and interest when due, and shall show cash balances
sufficient to pay with reasonable promptness all obligations
and expenses as incurred.
The annual budget and financial plan must show that the
level of fares and charges for mass transportation provided
by, or under grant or purchase of service contracts of, the
Service Boards is sufficient to cause the aggregate of all
projected fare revenues from such fares and charges received
in each fiscal year to equal at least 50% of the aggregate
costs of providing such public transportation in such fiscal
year. "Fare revenues" include the proceeds of all fares and
charges for services provided, contributions received in
connection with public transportation from units of local
government other than the Authority and from the State
pursuant to subsection (9) of Section 49.19 of the Civil
Administrative Code of Illinois, and all other operating
revenues properly included consistent with generally accepted
accounting principles but do not include the proceeds of any
borrowings. "Costs" include all items properly included as
operating costs consistent with generally accepted accounting
principles, including administrative costs, but do not
include: depreciation; payment of principal and interest on
bonds, notes or other evidences of obligation for borrowed
money issued by the Authority; payments with respect to
public transportation facilities made pursuant to subsection
(b) of Section 2.20 of this Act; any payments with respect to
rate protection contracts, credit enhancements or liquidity
agreements made under Section 4.14; any other cost to which
it is reasonably expected that a cash expenditure will not be
made; costs up to $5,000,000 annually for passenger security
including grants, contracts, personnel, equipment and
administrative expenses, except in the case of the Chicago
Transit Authority, in which case the term does not include
costs spent annually by that entity for protection against
crime as required by Section 27a of the Metropolitan Transit
Authority Act; or costs as exempted by the Board for projects
pursuant to Section 2.09 of this Act.
(c) The actual administrative expenses of the Authority
for the fiscal year commencing January 1, 1985 may not exceed
$5,000,000. The actual administrative expenses of the
Authority for the fiscal year commencing January 1, 1986, and
for each fiscal year thereafter shall not exceed the maximum
administrative expenses for the previous fiscal year plus 5%.
"Administrative expenses" are defined for purposes of this
Section as all expenses except: (1) capital expenses and
purchases of the Authority on behalf of the Service Boards;
(2) payments to Service Boards; and (3) payment of principal
and interest on bonds, notes or other evidence of obligation
for borrowed money issued by the Authority; (4) costs for
passenger security including grants, contracts, personnel,
equipment and administrative expenses; (5) payments with
respect to public transportation facilities made pursuant to
subsection (b) of Section 2.20 of this Act; and (6) any
payments with respect to rate protection contracts, credit
enhancements or liquidity agreements made pursuant to Section
4.14.
(d) After withholding 15% of the proceeds of any tax
imposed by the Authority and 15% of money received by the
Authority from the Regional Transportation Authority
Occupation and Use Tax Replacement Fund, the Board shall
allocate the proceeds and money remaining to the Service
Boards as follows: (1) an amount equal to 85% of the proceeds
of those taxes collected within the City of Chicago and 85%
of the money received by the Authority on account of
transfers to the Regional Transportation Authority Occupation
and Use Tax Replacement Fund from the County and Mass Transit
District Fund attributable to retail sales within the City of
Chicago shall be allocated to the Chicago Transit Authority;
(2) an amount equal to 85% of the proceeds of those taxes
collected within Cook County outside the City of Chicago and
85% of the money received by the Authority on account of
transfers to the Regional Transportation Authority Occupation
and Use Tax Replacement Fund from the County and Mass Transit
District Fund attributable to retail sales within Cook County
outside of the city of Chicago shall be allocated 30% to the
Chicago Transit Authority, 55% to the Commuter Rail Board and
15% to the Suburban Bus Board; and (3) an amount equal to 85%
of the proceeds of the taxes collected within the Counties of
DuPage, Kane, Lake, McHenry and Will shall be allocated 70%
to the Commuter Rail Board and 30% to the Suburban Bus Board.
(e) Moneys received by the Authority on account of
transfers to the Regional Transportation Authority Occupation
and Use Tax Replacement Fund from the State and Local Sales
Tax Reform Fund shall be allocated among the Authority and
the Service Boards as follows: 15% of such moneys shall be
retained by the Authority and the remaining 85% shall be
transferred to the Service Boards as soon as may be
practicable after the Authority receives payment. Moneys
which are distributable to the Service Boards pursuant to the
preceding sentence shall be allocated among the Service
Boards on the basis of each Service Board's distribution
ratio. The term "distribution ratio" means, for purposes of
this subsection (e) of this Section 4.01, the ratio of the
total amount distributed to a Service Board pursuant to
subsection (d) of Section 4.01 for the immediately preceding
calendar year to the total amount distributed to all of the
Service Boards pursuant to subsection (d) of Section 4.01 for
the immediately preceding calendar year.
To further and accomplish the preparation of the annual
budget and program as well as the Five-Year Program provided
for in Section 2.01 of this Act and to make such interim
management decisions as may be necessary, the Board shall
employ staff which shall: (1) evaluate for the Board public
transportation programs operated or proposed by
transportation agencies in terms of goals, costs and relative
priorities; (2) keep the Board informed of the public
transportation programs and accomplishments of such
transportation agencies; and (3) coordinate the development
and implementation of public transportation programs to the
end that the monies available to the Authority may be
expended in the most economical manner possible with the
least possible duplication. Under such regulations as the
Board may prescribe, all Service Boards, transportation
agencies, comprehensive planning agencies or transportation
planning agencies in the metropolitan region shall furnish to
the Board such information pertaining to public
transportation or relevant for plans therefor as it may from
time to time require, upon payment to any such agency or
Service Board of the reasonable additional cost of its so
providing such information except as may otherwise be
provided by agreement with the Authority, and the Board or
any duly authorized employee of the Board shall, for the
purpose of securing such information, have access to, and the
right to examine, all books, documents, papers or records of
any such agency or Service Board pertaining to public
transportation or relevant for plans therefor.
(Source: P.A. 86-16; 86-463; 86-928; 86-1028; 87-764.)
(70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
Sec. 4.03. Taxes.
(a) In order to carry out any of the powers or purposes
of the Authority, the Board may by ordinance adopted with the
concurrence of 9 of the then Directors, impose throughout the
metropolitan region any or all of the taxes provided in this
Section. Except as otherwise provided in this Act, taxes
imposed under this Section and civil penalties imposed
incident thereto shall be collected and enforced by the State
Department of Revenue. The Department shall have the power to
administer and enforce the taxes and to determine all rights
for refunds for erroneous payments of the taxes.
(b) The Board may impose a public transportation tax
upon all persons engaged in the metropolitan region in the
business of selling at retail motor fuel for operation of
motor vehicles upon public highways. The tax shall be at a
rate not to exceed 5% of the gross receipts from the sales of
motor fuel in the course of the business. As used in this
Act, the term "motor fuel" shall have the same meaning as in
the Motor Fuel Tax Act. The Board may provide for details of
the tax. The provisions of any tax shall conform, as closely
as may be practicable, to the provisions of the Municipal
Retailers Occupation Tax Act, including without limitation,
conformity to penalties with respect to the tax imposed and
as to the powers of the State Department of Revenue to
promulgate and enforce rules and regulations relating to the
administration and enforcement of the provisions of the tax
imposed, except that reference in the Act to any municipality
shall refer to the Authority and the tax shall be imposed
only with regard to receipts from sales of motor fuel in the
metropolitan region, at rates as limited by this Section.
(c) In connection with the tax imposed under paragraph
(b) of this Section the Board may impose a tax upon the
privilege of using in the metropolitan region motor fuel for
the operation of a motor vehicle upon public highways, the
tax to be at a rate not in excess of the rate of tax imposed
under paragraph (b) of this Section. The Board may provide
for details of the tax.
(d) The Board may impose a motor vehicle parking tax
upon the privilege of parking motor vehicles at off-street
parking facilities in the metropolitan region at which a fee
is charged, and may provide for reasonable classifications in
and exemptions to the tax, for administration and enforcement
thereof and for civil penalties and refunds thereunder and
may provide criminal penalties thereunder, the maximum
penalties not to exceed the maximum criminal penalties
provided in the Retailers' Occupation Tax Act. The Authority
may collect and enforce the tax itself or by contract with
any unit of local government. The State Department of
Revenue shall have no responsibility for the collection and
enforcement unless the Department agrees with the Authority
to undertake the collection and enforcement. As used in this
paragraph, the term "parking facility" means a parking area
or structure having parking spaces for more than 2 vehicles
at which motor vehicles are permitted to park in return for
an hourly, daily, or other periodic fee, whether publicly or
privately owned, but does not include parking spaces on a
public street, the use of which is regulated by parking
meters.
(e) The Board may impose a Regional Transportation
Authority Retailers' Occupation Tax upon all persons engaged
in the business of selling tangible personal property at
retail in the metropolitan region. In Cook County the tax
rate shall be 1% of the gross receipts from sales of food for
human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks
and food that has been prepared for immediate consumption)
and prescription and nonprescription medicines, drugs,
medical appliances and insulin, urine testing materials,
syringes and needles used by diabetics, and 3/4% of the gross
receipts from other taxable sales made in the course of that
business. In DuPage, Kane, Lake, McHenry, and Will Counties,
the tax rate shall be 1/4% of the gross receipts from all
taxable sales made in the course of that business. The tax
imposed under this Section and all civil penalties that may
be assessed as an incident thereof shall be collected and
enforced by the State Department of Revenue. The Department
shall have full power to administer and enforce this Section;
to collect all 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 Section, the Department and persons who
are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms,
and employ the same modes of procedure, as are prescribed in
Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
(in respect to all provisions therein other than the State
rate of tax), 2c, 3 (except as to the disposition of taxes
and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g,
5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13
of the Retailers' 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 Section may reimburse themselves for their
seller's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination in a single amount with State taxes that sellers
are required to collect under the Use Tax Act, under any
bracket schedules 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 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 Regional Transportation
Authority tax fund established under paragraph (n) of this
Section.
If a tax is imposed under this subsection (e), a tax
shall also be imposed under subsections (f) and (g) of this
Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale by a producer
of coal or other 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 other 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 Federal
Constitution as a sale in interstate or foreign commerce.
Nothing in this Section shall be construed to authorize
the Regional Transportation Authority 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.
(f) If a tax has been imposed under paragraph (e), a tax
shall also be imposed upon all persons engaged, in the
metropolitan region in the business of making sales of
service, who as an incident to making the sales of service,
transfer tangible personal property within the metropolitan
region, either in the form of tangible personal property or
in the form of real estate as an incident to a sale of
service. In Cook County, the tax rate shall be: (1) 1% of
the serviceman's cost price of food prepared for immediate
consumption and transferred incident to a sale of service
subject to the service occupation tax by an entity licensed
under the Hospital Licensing Act or the Nursing Home Care Act
that is located in the metropolitan region; (2) 1% of the
selling price of food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes and needles used
by diabetics; and (3) 3/4% of the selling price from other
taxable sales of tangible personal property transferred. In
DuPage, Kane, Lake, McHenry and Will Counties the rate shall
be 1/4% of the selling price of all tangible personal
property transferred.
The tax imposed under this paragraph and all civil
penalties that may be assessed as an incident thereof shall
be collected and enforced by the State Department of Revenue.
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes and penalties
due hereunder; to dispose of taxes and penalties 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 paragraph, the Department and
persons who are subject to this paragraph shall have the same
rights, remedies, privileges, immunities, powers and duties,
and be subject to the same conditions, restrictions,
limitations, penalties, exclusions, exemptions and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1a-1, 2, 2a, 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 Authority), 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 Authority), 9 (except as to the
disposition of taxes and penalties collected, and except that
the returned merchandise credit for this tax may not be taken
against any State tax), 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
Authority), the first paragraph of 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 paragraph may reimburse themselves for their
serviceman's tax liability hereunder by separately stating
the tax as an additional charge, that 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,
under any bracket schedules the Department may prescribe.
Whenever the Department determines that a refund should
be made under this paragraph 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 Regional Transportation Authority tax
fund established under paragraph (n) of this Section.
Nothing in this paragraph shall be construed to authorize
the Authority 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 the State.
(g) If a tax has been imposed under paragraph (e), a tax
shall also be imposed upon the privilege of using in the
metropolitan region, any item of tangible personal property
that is purchased outside the metropolitan region at retail
from a retailer, and that is titled or registered with an
agency of this State's government. In Cook County the tax
rate shall be 3/4% of the selling price of the tangible
personal property, as "selling price" is defined in the Use
Tax Act. In DuPage, Kane, Lake, McHenry and Will counties
the tax rate shall be 1/4% of the selling price of the
tangible personal property, as "selling price" is defined in
the Use Tax Act. The tax shall be collected from persons
whose Illinois address for titling or registration purposes
is given as being in the metropolitan region. The tax shall
be collected by the Department of Revenue for the Regional
Transportation Authority. The tax must be paid to the State,
or an exemption determination must be obtained from the
Department of Revenue, before the title or certificate of
registration for the property may be issued. The tax or proof
of exemption may be transmitted to the Department by way of
the State agency with which, or the State officer with whom,
the tangible personal property must be titled or registered
if the Department and the State agency or State officer
determine that this procedure will expedite the processing of
applications for title or registration.
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties and
interest due hereunder; to dispose of taxes, penalties and
interest collected in the manner hereinafter provided; and to
determine all rights to credit memoranda or refunds arising
on account of the erroneous payment of tax, penalty or
interest hereunder. In the administration of and compliance
with this paragraph, the Department and persons who are
subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms
and employ the same modes of procedure, as are prescribed in
Sections 2 (except the definition of "retailer maintaining a
place of business in this State"), 3 through 3-80 (except
provisions pertaining to the State rate of tax, and except
provisions concerning collection or refunding of the tax by
retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
pertaining to claims by retailers and except the last
paragraph concerning refunds), 20, 21 and 22 of the Use Tax
Act, and are not inconsistent with this paragraph, as fully
as if those provisions were set forth herein.
Whenever the Department determines that a refund should
be made under this paragraph 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 Regional Transportation Authority tax
fund established under paragraph (n) of this Section.
(h) The Authority may impose a replacement vehicle tax
of $50 on any passenger car as defined in Section 1-157 of
the Illinois Vehicle Code purchased within the metropolitan
region by or on behalf of an insurance company to replace a
passenger car of an insured person in settlement of a total
loss claim. The tax imposed may not become effective before
the first day of the month following the passage of the
ordinance imposing the tax and receipt of a certified copy of
the ordinance by the Department of Revenue. The Department
of Revenue shall collect the tax for the Authority in
accordance with Sections 3-2002 and 3-2003 of the Illinois
Vehicle Code.
The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes collected
hereunder. 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 Authority.
The amount to be paid to the Authority shall be the amount
collected hereunder during the second preceding calendar
month by the Department, less any amount determined by the
Department to be necessary for the payment of refunds.
Within 10 days after receipt by the Comptroller of the
disbursement certification to the Authority provided for in
this Section to be given to the Comptroller by the
Department, the Comptroller shall cause the orders to be
drawn for that amount in accordance with the directions
contained in the certification.
(i) The Board may not impose any other taxes except as
it may from time to time be authorized by law to impose.
(j) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (e), (f) or
(g) of this Section and no additional registration shall be
required under the tax. A certificate issued under the Use
Tax Act or the Service Use Tax Act shall be applicable with
regard to any tax imposed under paragraph (c) of this
Section.
(k) The provisions of any tax imposed under paragraph
(c) of this Section shall conform as closely as may be
practicable to the provisions of the Use Tax Act, including
without limitation conformity as to penalties with respect to
the tax imposed and as to the powers of the State Department
of Revenue to promulgate and enforce rules and regulations
relating to the administration and enforcement of the
provisions of the tax imposed. The taxes shall be imposed
only on use within the metropolitan region and at rates as
provided in the paragraph.
(l) The Board in imposing any tax as provided in
paragraphs (b) and (c) of this Section, shall, after seeking
the advice of the State Department of Revenue, provide means
for retailers, users or purchasers of motor fuel for purposes
other than those with regard to which the taxes may be
imposed as provided in those paragraphs to receive refunds of
taxes improperly paid, which provisions may be at variance
with the refund provisions as applicable under the Municipal
Retailers Occupation Tax Act. The State Department of
Revenue may provide for certificates of registration for
users or purchasers of motor fuel for purposes other than
those with regard to which taxes may be imposed as provided
in paragraphs (b) and (c) of this Section to facilitate the
reporting and nontaxability of the exempt sales or uses.
(m) Any ordinance imposing or discontinuing any tax
under this Section shall be adopted and a certified copy
thereof filed with the Department on or before June 1,
whereupon the Department of Revenue shall proceed to
administer and enforce this Section on behalf of the Regional
Transportation Authority as of September 1 next following
such adoption and filing. Beginning January 1, 1992, an
ordinance or resolution imposing or discontinuing the tax
hereunder shall be adopted and a certified copy thereof filed
with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1,
1993, an ordinance or resolution imposing or discontinuing
the tax hereunder shall be adopted and a certified copy
thereof filed with the Department on or before the first day
of October, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
January next following such adoption and filing.
(n) The State Department of Revenue shall, upon
collecting any taxes as provided in this Section, pay the
taxes over to the State Treasurer as trustee for the
Authority. The taxes shall be held in a trust fund outside
the State Treasury. On or before the 25th day of each
calendar month, the State Department of Revenue shall prepare
and certify to the Comptroller of the State of Illinois the
amount to be paid to the Authority, which shall be the then
balance in the fund, less any amount determined by the
Department to be necessary for the payment of refunds. The
State Department of Revenue shall also certify to the
Authority the amount of taxes collected in each County other
than Cook County in the metropolitan region less the amount
necessary for the payment of refunds to taxpayers in the
County. With regard to the County of Cook, the certification
shall specify the amount of taxes collected within the City
of Chicago less the amount necessary for the payment of
refunds to taxpayers in the City of Chicago and the amount
collected in that portion of Cook County outside of Chicago
less the amount necessary for the payment of refunds to
taxpayers in that portion of Cook County outside of Chicago.
Within 10 days after receipt by the Comptroller of the
certification of the amount to be paid to the Authority, the
Comptroller shall cause an order to be drawn for the payment
for the amount in accordance with the direction in the
certification.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in July 1991 and each
year thereafter to the Regional Transportation Authority.
The allocation shall be made in an amount equal to the
average monthly distribution during the preceding calendar
year (excluding the 2 months of lowest receipts) and the
allocation shall include the amount of average monthly
distribution from the Regional Transportation Authority
Occupation and Use Tax Replacement Fund. The distribution
made in July 1992 and each year thereafter under 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 of Revenue shall
prepare and certify to the Comptroller for disbursement the
allocations made in accordance with this paragraph.
(o) Failure to adopt a budget ordinance or otherwise to
comply with Section 4.01 of this Act or to adopt a Five-year
Program or otherwise to comply with paragraph (b) of Section
2.01 of this Act shall not affect the validity of any tax
imposed by the Authority otherwise in conformity with law.
(p) At no time shall a public transportation tax or
motor vehicle parking tax authorized under paragraphs (b),
(c) and (d) of this Section be in effect at the same time as
any retailers' occupation, use or service occupation tax
authorized under paragraphs (e), (f) and (g) of this Section
is in effect.
Any taxes imposed under the authority provided in
paragraphs (b), (c) and (d) shall remain in effect only until
the time as any tax authorized by paragraphs (e), (f) or (g)
of this Section are imposed and becomes effective. Once any
tax authorized by paragraphs (e), (f) or (g) is imposed the
Board may not reimpose taxes as authorized in paragraphs (b),
(c) and (d) of the Section unless any tax authorized by
paragraphs (e), (f) or (g) of this Section becomes
ineffective by means other than an ordinance of the Board.
(q) Any existing rights, remedies and obligations
(including enforcement by the Regional Transportation
Authority) arising under any tax imposed under paragraphs
(b), (c) or (d) of this Section shall not be affected by the
imposition of a tax under paragraphs (e), (f) or (g) of this
Section.
(Source: P.A. 86-928; 86-1475; 86-1481; 87-205; 87-435;
87-876; 87-895.)
(70 ILCS 3615/4.04) (from Ch. 111 2/3, par. 704.04)
Sec. 4.04. Issuance and Pledge of Bonds and Notes.
(a) The Authority shall have the continuing power to
borrow money and to issue its negotiable bonds or notes as
provided in this Section. Unless otherwise indicated in this
Section, the term "notes" also includes bond anticipation
notes, which are notes which by their terms provide for their
payment from the proceeds of bonds thereafter to be issued.
Bonds or notes of the Authority may be issued for any or all
of the following purposes: to pay costs to the Authority or a
Service Board of constructing or acquiring any public
transportation facilities (including funds and rights
relating thereto, as provided in Section 2.05 of this Act);
to repay advances to the Authority or a Service Board made
for such purposes; to pay other expenses of the Authority or
a Service Board incident to or incurred in connection with
such construction or acquisition; to provide funds for any
transportation agency to pay principal of or interest or
redemption premium on any bonds or notes, whether as such
amounts become due or by earlier redemption, issued prior to
the date of this amendatory Act by such transportation agency
to construct or acquire public transportation facilities or
to provide funds to purchase such bonds or notes; and to
provide funds for any transportation agency to construct or
acquire any public transportation facilities, to repay
advances made for such purposes, and to pay other expenses
incident to or incurred in connection with such construction
or acquisition; and to provide funds for payment of
obligations, including the funding of reserves, under any
self-insurance plan or joint self-insurance pool or entity.
In addition to any other borrowing as may be authorized by
this Section, the Authority may issue its notes, from time to
time, in anticipation of tax receipts of the Authority or of
other revenues or receipts of the Authority, in order to
provide money for the Authority or the Service Boards to
cover any cash flow deficit which the Authority or a Service
Board anticipates incurring. Any such notes are referred to
in this Section as "Working Cash Notes". No Working Cash
Notes shall be issued for a term of longer than 18 months.
Proceeds of Working Cash Notes may be used to pay day to day
operating expenses of the Authority or the Service Boards,
consisting of wages, salaries and fringe benefits,
professional and technical services (including legal, audit,
engineering and other consulting services), office rental,
furniture, fixtures and equipment, insurance premiums, claims
for self-insured amounts under insurance policies, public
utility obligations for telephone, light, heat and similar
items, travel expenses, office supplies, postage, dues,
subscriptions, public hearings and information expenses, fuel
purchases, and payments of grants and payments under purchase
of service agreements for operations of transportation
agencies, prior to the receipt by the Authority or a Service
Board from time to time of funds for paying such expenses.
In addition to any Working Cash Notes that the Board of the
Authority may determine to issue, the Suburban Bus Board, the
Commuter Rail Board or the Board of the Chicago Transit
Authority may demand and direct that the Authority issue its
Working Cash Notes in such amounts and having such maturities
as the Service Board may determine. Notwithstanding any
other provision of this Act, any amounts necessary to pay
principal of and interest on any Working Cash Notes issued at
the demand and direction of a Service Board or any Working
Cash Notes the proceeds of which were used for the direct
benefit of a Service Board or any other Bonds or Notes of the
Authority the proceeds of which were used for the direct
benefit of a Service Board shall constitute a reduction of
the amount of the proceeds of any tax imposed by the
Authority under Sections 4.03 and 4.03.1 or any other funds
provided by the Authority to a Service Board. The Authority
shall, after deducting any costs of issuance, tender the net
proceeds of any Working Cash Notes issued at the demand and
direction of a Service Board to such Service Board as soon as
may be practicable after the proceeds are received. The
Authority may also issue notes or bonds to pay, refund or
redeem any of its notes and bonds, including to pay
redemption premiums or accrued interest on such bonds or
notes being renewed, paid or refunded, and other costs in
connection therewith. The Authority may also utilize the
proceeds of any such bonds or notes to pay the legal,
financial, administrative and other expenses of such
authorization, issuance, sale or delivery of bonds or notes
or to provide or increase a debt service reserve fund with
respect to any or all of its bonds or notes. The Authority
may also issue and deliver its bonds or notes in exchange for
any public transportation facilities, (including funds and
rights relating thereto, as provided in Section 2.05 of this
Act) or in exchange for outstanding bonds or notes of the
Authority, including any accrued interest or redemption
premium thereon, without advertising or submitting such notes
or bonds for public bidding.
(b) The ordinance providing for the issuance of any such
bonds or notes shall fix the date or dates of maturity, the
dates on which interest is payable, any sinking fund account
or reserve fund account provisions and all other details of
such bonds or notes and may provide for such covenants or
agreements necessary or desirable with regard to the issue,
sale and security of such bonds or notes. The rate or rates
of interest on its bonds or notes may be fixed or variable
and the Authority shall determine or provide for the
determination of the rate or rates of interest of its bonds
or notes issued under this Act in an ordinance adopted by the
Authority prior to the issuance thereof, none of which rates
of interest shall exceed that permitted in "An Act to
authorize public corporations to issue bonds, other evidences
of indebtedness and tax anticipation warrants subject to
interest rate limitations set forth therein", approved May
26, 1970, as now or hereafter amended. Interest may be
payable annually or semi-annually, or at such other times as
provided for by the Board. Bonds and notes issued under this
Section may be issued as serial or term obligations, shall be
of such denomination or denominations and form, including
interest coupons to be attached thereto, be executed in such
manner, shall be payable at such place or places and bear
such date as the Authority shall fix by the ordinance
authorizing such bond or note and shall mature at such time
or times, within a period not to exceed forty years from the
date of issue, and may be redeemable prior to maturity with
or without premium, at the option of the Authority, upon such
terms and conditions as the Authority shall fix by the
ordinance authorizing the issuance of such bonds or notes. No
bond anticipation note or any renewal thereof shall mature at
any time or times exceeding 5 years from the date of the
first issuance of such note. The Authority may provide for
the registration of bonds or notes in the name of the owner
as to the principal alone or as to both principal and
interest, upon such terms and conditions as the Authority may
determine. The ordinance authorizing bonds or notes may
provide for the exchange of such bonds or notes which are
fully registered, as to both principal and interest, with
bonds or notes which are registerable as to principal only.
All bonds or notes issued under this Section by the Authority
other than those issued in exchange for property or for bonds
or notes of the Authority shall be sold at a price which may
be at a premium or discount but such that the interest cost
(excluding any redemption premium) to the Authority of the
proceeds of an issue of such bonds or notes, computed to
stated maturity according to standard tables of bond values,
shall not exceed that permitted in "An Act to authorize
public corporations to issue bonds, other evidences of
indebtedness and tax anticipation warrants subject to
interest rate limitations set forth therein", approved May
26, 1970, as now or hereafter amended. Such bonds or notes
shall be sold at such time or times and, until January 1,
1995, in such manner as the Authority shall determine. The
Authority shall notify the Bureau of the Budget and the State
Comptroller 30 days before any bond sale and shall file with
the Bureau of the Budget and the State Comptroller a
certified copy of any ordinance authorizing the issuance of
bonds at or before the issuance of the bonds. After December
31, 1994, any such bonds or notes shall be sold to the
highest and best bidder on sealed bids as the Authority shall
deem. As such bonds or notes are to be sold the Authority
shall advertise for proposals to purchase the bonds or notes
which advertisement shall be published at least once in a
daily newspaper of general circulation published in the
metropolitan region at least 10 days before the time set for
the submission of bids. The Authority shall have the right to
reject any or all bids. Notwithstanding any other provisions
of this Section, Working Cash Notes or bonds or notes to
provide funds for self-insurance or a joint self-insurance
pool or entity may be sold either upon competitive bidding or
by negotiated sale (without any requirement of publication of
intention to negotiate the sale of such Notes), as the Board
shall determine by ordinance adopted with the affirmative
votes of at least 7 Directors. In case any officer whose
signature appears on any bonds, notes or coupons authorized
pursuant to this Section shall cease to be such officer
before delivery of such bonds or notes, such signature shall
nevertheless be valid and sufficient for all purposes, the
same as if such officer had remained in office until such
delivery. Neither the Directors of the Authority nor any
person executing any bonds or notes thereof shall be liable
personally on any such bonds or notes or coupons by reason of
the issuance thereof.
(c) All bonds or notes of the Authority issued pursuant
to this Section shall be general obligations of the Authority
to which shall be pledged the full faith and credit of the
Authority, as provided in this Section. Such bonds or notes
shall be secured as provided in the authorizing ordinance,
which may, notwithstanding any other provision of this Act,
include in addition to any other security, a specific pledge
or assignment of and lien on or security interest in any or
all tax receipts of the Authority and on any or all other
revenues or moneys of the Authority from whatever source
which may by law be utilized for debt service purposes and a
specific pledge or assignment of and lien on or security
interest in any funds or accounts established or provided for
by the ordinance of the Authority authorizing the issuance of
such bonds or notes. Any such pledge, assignment, lien or
security interest for the benefit of holders of bonds or
notes of the Authority shall be valid and binding from the
time the bonds or notes are issued without any physical
delivery or further act, and shall be valid and binding as
against and prior to the claims of all other parties having
claims of any kind against the Authority or any other person
irrespective of whether such other parties have notice of
such pledge, assignment, lien or security interest. The
obligations of the Authority incurred pursuant to this
Section shall be superior to and have priority over any other
obligations of the Authority. The Authority may provide in
the ordinance authorizing the issuance of any bonds or notes
issued pursuant to this Section for the creation of, deposits
in, and regulation and disposition of sinking fund or reserve
accounts relating to such bonds or notes. The ordinance
authorizing the issuance of any bonds or notes pursuant to
this Section may contain provisions as part of the contract
with the holders of the bonds or notes, for the creation of a
separate fund to provide for the payment of principal and
interest on such bonds or notes and for the deposit in such
fund from any or all the tax receipts of the Authority and
from any or all such other moneys or revenues of the
Authority from whatever source which may by law be utilized
for debt service purposes, all as provided in such ordinance,
of amounts to meet the debt service requirements on such
bonds or notes, including principal and interest, and any
sinking fund or reserve fund account requirements as may be
provided by such ordinance, and all expenses incident to or
in connection with such fund and accounts or the payment of
such bonds or notes. Such ordinance may also provide
limitations on the issuance of additional bonds or notes of
the Authority. No such bonds or notes of the Authority shall
constitute a debt of the State of Illinois. Nothing in this
Act shall be construed to enable the Authority to impose any
ad valorem tax on property.
(d) The ordinance of the Authority authorizing the
issuance of any bonds or notes may provide additional
security for such bonds or notes by providing for appointment
of a corporate trustee (which may be any trust company or
bank having the powers of a trust company within the state)
with respect to such bonds or notes. The ordinance shall
prescribe the rights, duties and powers of the trustee to be
exercised for the benefit of the Authority and the protection
of the holders of such bonds or notes. The ordinance may
provide for the trustee to hold in trust, invest and use
amounts in funds and accounts created as provided by the
ordinance with respect to the bonds or notes. The ordinance
may provide for the assignment and direct payment to the
trustee of any or all amounts produced from the sources
provided in Section 4.03 of this Act and provided in Section
6z-17 of "An Act in relation to State finance", approved June
10, 1919, as amended. Upon receipt of notice of any such
assignment, the Department of Revenue and the Comptroller of
the State of Illinois shall thereafter, notwithstanding the
provisions of Section 4.03 of this Act and Section 6z-17 of
"An Act in relation to State finance", approved June 10,
1919, as amended, provide for such assigned amounts to be
paid directly to the trustee instead of the Authority, all in
accordance with the terms of the ordinance making the
assignment. The ordinance shall provide that amounts so paid
to the trustee which are not required to be deposited, held
or invested in funds and accounts created by the ordinance
with respect to bonds or notes or used for paying bonds or
notes to be paid by the trustee to the Authority.
(e) Any bonds or notes of the Authority issued pursuant
to this Section shall constitute a contract between the
Authority and the holders from time to time of such bonds or
notes. In issuing any bond or note, the Authority may include
in the ordinance authorizing such issue a covenant as part of
the contract with the holders of the bonds or notes, that as
long as such obligations are outstanding, it shall make such
deposits, as provided in paragraph (c) of this Section. It
may also so covenant that it shall impose and continue to
impose taxes, as provided in Section 4.03 of this Act and in
addition thereto as subsequently authorized by law,
sufficient to make such deposits and pay the principal and
interest and to meet other debt service requirements of such
bonds or notes as they become due. A certified copy of the
ordinance authorizing the issuance of any such obligations
shall be filed at or prior to the issuance of such
obligations with the Comptroller of the State of Illinois and
the Illinois Department of Revenue.
(f) The State of Illinois pledges to and agrees with the
holders of the bonds and notes of the Authority issued
pursuant to this Section that the State will not limit or
alter the rights and powers vested in the Authority by this
Act so as to impair the terms of any contract made by the
Authority with such holders or in any way impair the rights
and remedies of such holders until such bonds and notes,
together with interest thereon, with interest on any unpaid
installments of interest, and all costs and expenses in
connection with any action or proceedings by or on behalf of
such holders, are fully met and discharged. In addition, the
State pledges to and agrees with the holders of the bonds and
notes of the Authority issued pursuant to this Section that
the State will not limit or alter the basis on which State
funds are to be paid to the Authority as provided in this
Act, or the use of such funds, so as to impair the terms of
any such contract. The Authority is authorized to include
these pledges and agreements of the State in any contract
with the holders of bonds or notes issued pursuant to this
Section.
(g) (1) The Authority shall not at any time issue, sell
or deliver any bonds or notes (other than Working Cash Notes)
pursuant to this Section which will cause it to have issued
and outstanding at any time in excess of $500,000,000 of such
bonds and notes (other than Working Cash Notes). The
Authority shall not at any time issue, sell or deliver any
Working Cash Notes pursuant to this Section which will cause
it to have issued and outstanding at any time in excess of
$100,000,000 of Working Cash Notes. Bonds or notes which are
being paid or retired by such issuance, sale or delivery of
bonds or notes, and bonds or notes for which sufficient funds
have been deposited with the paying agency of such bonds or
notes to provide for payment of principal and interest
thereon or to provide for the redemption thereof, all
pursuant to the ordinance authorizing the issuance of such
bonds or notes, shall not be considered to be outstanding for
the purposes of the first two sentences of this subsection.
(2) In addition to the authority provided by paragraph
(1), the Authority is authorized to issue, sell and deliver
bonds or notes for Strategic Capital Improvement Projects
approved pursuant to Section 4.13 as follows:
$100,000,000 is authorized to be issued on or after
January 1, 1990;
an additional $100,000,000 is authorized to be issued on
or after January 1, 1991;
an additional $100,000,000 is authorized to be issued on
or after January 1, 1992;
an additional $100,000,000 is authorized to be issued on
or after January 1, 1993;
an additional $100,000,000 is authorized to be issued on
or after January 1, 1994; and
the aggregate total authorization of bonds and notes for
Strategic Capital Improvement Projects as of January 1, 1994,
shall be $500,000,000.
(h) The Authority, subject to the terms of any
agreements with noteholders or bond holders as may then
exist, shall have power, out of any funds available therefor,
to purchase notes or bonds of the Authority which shall
thereupon be cancelled.
(i) In addition to any other authority granted by law,
the State Treasurer may, with the approval of the Governor,
invest or reinvest, at a price not to exceed par, any State
money in the State Treasury which is not needed for current
expenditures due or about to become due in Working Cash
Notes.
(Source: P.A. 86-16.)
(70 ILCS 3615/4.09) (from Ch. 111 2/3, par. 704.09)
Sec. 4.09. Public Transportation Fund and the Regional
Transportation Authority Occupation and Use Tax Replacement
Fund.
(a) As soon as possible after the first day of each
month, beginning November 1, 1983, the Comptroller shall
order transferred and the Treasurer shall transfer from the
General Revenue Fund to a special fund in the State Treasury,
to be known as the "Public Transportation Fund" $9,375,000
for each month remaining in State fiscal year 1984. As soon
as possible after the first day of each month, beginning July
1, 1984, upon certification of the Department of Revenue, the
Comptroller shall order transferred and the Treasurer shall
transfer from the General Revenue Fund to the Public
Transportation Fund an amount equal to 25% of the net
revenue, before the deduction of the serviceman and retailer
discounts pursuant to Section 9 of the Service Occupation Tax
Act and Section 3 of the Retailers' Occupation Tax Act,
realized from any tax imposed by the Authority pursuant to
Sections 4.03 and 4.03.1 and 25% of the amounts deposited
into the Regional Transportation Authority tax fund created
by Section 4.03 of this Act, from the County and Mass Transit
District Fund as provided in Section 6z-20 of the State
Finance Act and 25% of the amounts deposited into the
Regional Transportation Authority Occupation and Use Tax
Replacement Fund from the State and Local Sales Tax Reform
Fund as provided in Section 6z-17 of the State Finance Act.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to Sections 4.03 and 4.03.1
during the previous month from within the metropolitan
region, less the amount paid out during that same month as
refunds to taxpayers for overpayment of liability in the
metropolitan region under Sections 4.03 and 4.03.1.
(b) (1) All moneys deposited in the Public
Transportation Fund and the Regional Transportation
Authority Occupation and Use Tax Replacement Fund,
whether deposited pursuant to this Section or otherwise,
are allocated to the Authority. Pursuant to
appropriation, the Comptroller, as soon as possible after
each monthly transfer provided in this Section and after
each deposit into the Public Transportation Fund, shall
order the Treasurer to pay to the Authority out of the
Public Transportation Fund the amount so transferred or
deposited. Such amounts paid to the Authority may be
expended by it for its purposes as provided in this Act.
Subject to appropriation to the Department of
Revenue, the Comptroller, as soon as possible after each
deposit into the Regional Transportation Authority
Occupation and Use Tax Replacement Fund provided in this
Section and Section 6z-17 of the State Finance Act, shall
order the Treasurer to pay to the Authority out of the
Regional Transportation Authority Occupation and Use Tax
Replacement Fund the amount so deposited. Such amounts
paid to the Authority may be expended by it for its
purposes as provided in this Act.
(2) Provided, however, no moneys deposited under
subsection (a) of Section 4.09 shall be paid from the
Public Transportation Fund to the Authority for any
fiscal year beginning after the effective date of this
amendatory Act of 1983 until the Authority has certified
to the Governor, the Comptroller, and the Mayor of the
City of Chicago that it has adopted for that fiscal year
a budget and financial plan meeting the requirements in
Section 4.01(b).
(c) In recognition of the efforts of the Authority to
enhance the mass transportation facilities under its control,
the State shall provide financial assistance ("Additional
State Assistance") in excess of the amounts transferred to
the Authority from the General Revenue Fund under subsection
(a) of this Section. Additional State Assistance provided in
any State fiscal year shall not exceed the actual debt
service payable by the Authority during that State fiscal
year on bonds or notes issued to finance Strategic Capital
Improvement Projects under Section 4.04 of this Act.
Additional State Assistance shall in no event exceed the
following specified amounts with respect to the following
State fiscal years:
1990 $5,000,000;
1991 $5,000,000;
1992 $10,000,000;
1993 $10,000,000;
1994 $20,000,000;
1995 $30,000,000;
1996 $40,000,000;
1997 $50,000,000;
1998 $55,000,000; and
each year thereafter $55,000,000.
(d) Beginning with State fiscal year 1990 and continuing
for each State fiscal year thereafter, the Authority shall
annually certify to the State Comptroller and State Treasurer
(1) the amount necessary and required, during the State
fiscal year with respect to which the certification is made,
to pay its obligations for debt service on all outstanding
bonds or notes for Strategic Capital Improvement Projects
issued by the Authority under Section 4.04 of this Act and
(2) an estimate of the amount necessary and required to pay
its obligations for debt service for any bonds or notes for
Strategic Capital Improvement Projects which the Authority
anticipates it will issue during that State fiscal year. The
certification shall include a specific schedule of debt
service payments, including the date and amount of each
payment for all outstanding bonds or notes and an estimated
schedule of anticipated debt service for all bonds and notes
it intends to issue, if any, during that State fiscal year,
including the estimated date and estimated amount of each
payment. Immediately, upon the issuance of bonds for which
an estimated schedule of debt service payments was prepared,
the Authority shall file an amended certification to specify
the actual schedule of debt service payments, including the
date and amount of each payment, for the remainder of the
State fiscal year. On the first day of each month of the
State fiscal year in which there are bonds outstanding with
respect to which the certification is made, the State
Comptroller shall order transferred and the State Treasurer
shall transfer from the General Revenue Fund to the Public
Transportation Fund the Additional State Assistance in an
amount equal to the aggregate of (1) one-twelfth of the
amount required to pay debt service on bonds and notes issued
before the beginning of the State fiscal year and (2) the
amount required to pay debt service on bonds and notes issued
during the fiscal year, if any, divided by the number of
months remaining in the fiscal year after the date of
issuance, or some smaller portion as may be necessary, listed
in subsection (c) for the relevant State fiscal year, plus
any cumulative deficiencies in transfers for prior months,
until an amount equal to the certified debt service for that
State fiscal year on outstanding bonds or notes for Strategic
Capital Improvement Projects issued by the Authority under
Section 4.04 of this Act has been transferred. In no event
shall total transfers in any State fiscal year exceed the
lesser of the annual amounts specified in subsection (c) or
the total certified debt service on outstanding bonds or
notes for Strategic Capital Improvement Projects issued by
the Authority under Section 4.04 of this Act.
(e) Additional State Assistance may not be pledged,
either directly or indirectly as general revenues of the
Authority, as security for any bonds issued by the Authority.
The Authority may not assign its right to receive Additional
State Assistance or direct payment of Additional State
Assistance to a trustee or any other entity for the payment
of debt service on its bonds.
(f) The certification required under subsection (d) with
respect to outstanding bonds and notes of the Authority shall
be filed as early as practicable before the beginning of the
State fiscal year to which it relates. The certification
shall be revised as may be necessary to accurately state the
debt service requirements of the Authority.
(g) Within 6 months of the end of the 3 month period
ending December 31, 1983, and each fiscal year thereafter,
the Authority shall determine whether the aggregate of all
system generated revenues for public transportation in the
metropolitan region which is provided by, or under grant or
purchase of service contracts with, the Service Boards equals
50% of the aggregate of all costs of providing such public
transportation. "System generated revenues" include all the
proceeds of fares and charges for services provided,
contributions received in connection with public
transportation from units of local government other than the
Authority and from the State pursuant to subsection (9) of
Section 49.19 of the Civil Administrative Code of Illinois,
and all other revenues properly included consistent with
generally accepted accounting principles but may not include
the proceeds from any borrowing. "Costs" include all items
properly included as operating costs consistent with
generally accepted accounting principles, including
administrative costs, but do not include: depreciation;
payment of principal and interest on bonds, notes or other
evidences of obligations for borrowed money of the Authority;
payments with respect to public transportation facilities
made pursuant to subsection (b) of Section 2-20; any payments
with respect to rate protection contracts, credit
enhancements or liquidity agreements made under Section 4.14;
any other cost as to which it is reasonably expected that a
cash expenditure will not be made; costs up to $5,000,000
annually for passenger security including grants, contracts,
personnel, equipment and administrative expenses, except in
the case of the Chicago Transit Authority, in which case the
term does not include costs spent annually by that entity for
protection against crime as required by Section 27a of the
Metropolitan Transit Authority Act; or costs as exempted by
the Board for projects pursuant to Section 2.09 of this Act.
If said system generated revenues are less than 50% of said
costs, the Board shall remit an amount equal to the amount of
the deficit to the State. The Treasurer shall deposit any
such payment in the General Revenue Fund.
(h) If the Authority makes any payment to the State
under paragraph (g), the Authority shall reduce the amount
provided to a Service Board from funds transferred under
paragraph (a) in proportion to the amount by which that
Service Board failed to meet its required system generated
revenues recovery ratio. A Service Board which is affected by
a reduction in funds under this paragraph shall submit to the
Authority concurrently with its next due quarterly report a
revised budget incorporating the reduction in funds. The
revised budget must meet the criteria specified in clauses
(i) through (vi) of Section 4.11(b)(2). The Board shall
review and act on the revised budget as provided in Section
4.11(b)(3).
(Source: P.A. 86-16; 86-463; 86-928; 86-1028; 86-1481;
87-764.)
Section 165. The Water Commission Act of 1985 is amended
by re-enacting Section 4 as follows:
(70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
Sec. 4. (a) The board of commissioners of any county
water commission may, by ordinance, impose throughout the
territory of the commission any or all of the taxes provided
in this Section for its corporate purposes. However, no
county water commission may impose any such tax unless the
commission certifies the proposition of imposing the tax to
the proper election officials, who shall submit the
proposition to the voters residing in the territory at an
election in accordance with the general election law, and the
proposition has been approved by a majority of those voting
on the proposition.
The proposition shall be in the form provided in Section
5 or shall be substantially in the following form:
-------------------------------------------------------------
Shall the (insert corporate
name of county water commission) YES
impose (state type of tax or ------------------------
taxes to be imposed) at the NO
rate of 1/4%?
-------------------------------------------------------------
Taxes imposed under this Section and civil penalties
imposed incident thereto shall be collected and enforced by
the State Department of Revenue. The Department shall have
the power to administer and enforce the taxes and to
determine all rights for refunds for erroneous payments of
the taxes.
(b) The board of commissioners may impose a County Water
Commission Retailers' Occupation Tax upon all persons engaged
in the business of selling tangible personal property at
retail in the territory of the commission at a rate of 1/4%
of the gross receipts from the sales made in the course of
such business within the territory. The tax imposed under
this paragraph and all civil penalties that may be assessed
as an incident thereof shall be collected and enforced by the
State Department of Revenue. The Department shall have full
power to administer and enforce this paragraph; 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 paragraph, the Department and persons who are subject to
this paragraph shall have the same rights, remedies,
privileges, immunities, powers and duties, and be subject to
the same conditions, restrictions, limitations, penalties,
exclusions, exemptions and definitions of terms, and employ
the same modes of procedure, as are prescribed in Sections 1,
1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect
to all provisions therein other than the State rate of tax
except that food for human consumption that is to be consumed
off the premises where it is sold (other than alcoholic
beverages, soft drinks, and food that has been prepared for
immediate consumption) and prescription and nonprescription
medicine, drugs, medical appliances and insulin, urine
testing materials, syringes, and needles used by diabetics,
for human use, shall not be subject to tax hereunder), 2c, 3
(except as to the disposition of taxes and penalties
collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
Retailers' 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 paragraph may reimburse themselves for their
seller's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State taxes that
sellers are required to collect under the Use Tax Act and
under subsection (e) of Section 4.03 of the Regional
Transportation Authority Act, in accordance with such bracket
schedules as the Department may prescribe.
Whenever the Department determines that a refund should
be made under this paragraph 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 a county water commission tax
fund established under paragraph (g) of this Section.
For the purpose of determining whether a tax authorized
under this paragraph is applicable, a retail sale by a
producer of coal or other 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 other 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 Federal
Constitution as a sale in interstate or foreign commerce.
If a tax is imposed under this subsection (b) a tax shall
also be imposed under subsections (c) and (d) of this
Section.
Nothing in this paragraph shall be construed to authorize
a county water commission 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
this State.
(c) If a tax has been imposed under subsection (b), a
tax shall also be imposed upon all persons engaged, in the
territory of the commission, in the business of making sales
of service, who, as an incident to making the sales of
service, transfer tangible personal property within the
territory. The tax rate shall be 1/4% of the selling price of
tangible personal property so transferred within the
territory. The tax imposed under this paragraph and all
civil penalties that may be assessed as an incident thereof
shall be collected and enforced by the State Department of
Revenue. The Department shall have full power to administer
and enforce this paragraph; 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 paragraph, the
Department and persons who are subject to this paragraph
shall have the same rights, remedies, privileges, immunities,
powers and duties, and be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions
and definitions of terms, and employ the same modes of
procedure, as are prescribed in Sections 1a-1, 2 (except that
the reference to State in the definition of supplier
maintaining a place of business in this State shall mean the
territory of the commission), 2a, 3 through 3-50 (in respect
to all provisions therein other than the State rate of tax
except that food for human consumption that is to be consumed
off the premises where it is sold (other than alcoholic
beverages, soft drinks, and food that has been prepared for
immediate consumption) and prescription and nonprescription
medicines, drugs, medical appliances and insulin, urine
testing materials, syringes, and needles used by diabetics,
for human use, shall not be subject to tax hereunder), 4
(except that the reference to the State shall be to the
territory of the commission), 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 commission), 9
(except as to the disposition of taxes and penalties
collected and except that the returned merchandise credit for
this tax may not be taken against any State tax), 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 territory of the commission), the first
paragraph of Section 15, 15.5, 16, 17, 18, 19 and 20 of the
Service Occupation Tax Act as fully as if those provisions
were set forth herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
serviceman's tax liability hereunder 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, and any tax for which servicemen may be liable under
subsection (f) of Sec. 4.03 of the Regional Transportation
Authority Act, in accordance with such bracket schedules as
the Department may prescribe.
Whenever the Department determines that a refund should
be made under this paragraph 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 a county water commission tax
fund established under paragraph (g) of this Section.
Nothing in this paragraph shall be construed to authorize
a county water commission 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.
(d) If a tax has been imposed under subsection (b), a
tax shall also imposed upon the privilege of using, in the
territory of the commission, any item of tangible personal
property that is purchased outside the territory at retail
from a retailer, and that is titled or registered with an
agency of this State's government, at a rate of 1/4% of the
selling price of the tangible personal property within the
territory, as "selling price" is defined in the Use Tax Act.
The tax shall be collected from persons whose Illinois
address for titling or registration purposes is given as
being in the territory. The tax shall be collected by the
Department of Revenue for a county water commission. The tax
must be paid to the State, or an exemption determination must
be obtained from the Department of Revenue, before the title
or certificate of registration for the property may be
issued. The tax or proof of exemption may be transmitted to
the Department by way of the State agency with which, or the
State officer with whom, the tangible personal property must
be titled or registered if the Department and the State
agency or State officer determine that this procedure will
expedite the processing of applications for title or
registration.
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties and
interest due hereunder; to dispose of taxes, penalties and
interest so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda or refunds
arising on account of the erroneous payment of tax, penalty
or interest hereunder. In the administration of, and
compliance with this paragraph, the Department and persons
who are subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms
and employ the same modes of procedure, as are prescribed in
Sections 2 (except the definition of "retailer maintaining a
place of business in this State"), 3 through 3-80 (except
provisions pertaining to the State rate of tax, and except
provisions concerning collection or refunding of the tax by
retailers, and except that food for human consumption that is
to be consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes, and needles used
by diabetics, for human use, shall not be subject to tax
hereunder), 4, 11, 12, 12a, 14, 15, 19 (except the portions
pertaining to claims by retailers and except the last
paragraph concerning refunds), 20, 21 and 22 of the Use Tax
Act and Section 3-7 of the Uniform Penalty and Interest Act
that are not inconsistent with this paragraph, as fully as if
those provisions were set forth herein.
Whenever the Department determines that a refund should
be made under this paragraph 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 a county water commission tax
fund established under paragraph (g) of this Section.
(e) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (c) or (d)
of this Section and no additional registration shall be
required under the tax. A certificate issued under the Use
Tax Act or the Service Use Tax Act shall be applicable with
regard to any tax imposed under paragraph (c) of this
Section.
(f) Any ordinance imposing or discontinuing any tax
under this Section shall be adopted and a certified copy
thereof filed with the Department on or before June 1,
whereupon the Department of Revenue shall proceed to
administer and enforce this Section on behalf of the county
water commission as of September 1 next following the
adoption and filing. Beginning January 1, 1992, an ordinance
or resolution imposing or discontinuing the tax hereunder
shall be adopted and a certified copy thereof filed with the
Department on or before the first day of July, whereupon the
Department shall proceed to administer and enforce this
Section as of the first day of October next following such
adoption and filing. Beginning January 1, 1993, an ordinance
or resolution imposing or discontinuing the tax hereunder
shall be adopted and a certified copy thereof filed with the
Department on or before the first day of October, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of January next following such
adoption and filing.
(g) The State Department of Revenue shall, upon
collecting any taxes as provided in this Section, pay the
taxes over to the State Treasurer as trustee for the
commission. The taxes shall be held in a trust fund outside
the State Treasury. On or before the 25th day of each
calendar month, the State Department of Revenue shall prepare
and certify to the Comptroller of the State of Illinois the
amount to be paid to the commission, which shall be the then
balance in the fund, less any amount determined by the
Department to be necessary for the payment of refunds. Within
10 days after receipt by the Comptroller of the certification
of the amount to be paid to the commission, the Comptroller
shall cause an order to be drawn for the payment for the
amount in accordance with the direction in the certification.
(Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
Section 900. Sections 1 and 2 of Article V of Public Act
85-1135 are re-enacted as follows:
(P.A. 85-1135, Art. V, Sec. 1)
Sec. 1. This amendatory Act of 1988 shall not affect any
right, remedy or liability, whether civil or criminal, which
existed prior to the effective date hereof.
(P.A. 85-1135, Art. V, Sec. 2)
Sec. 2. A home rule municipality may enact ordinances
imposing taxes pursuant to Sections 8-11-1, 8-11-5 and 8-11-6
of the Illinois Municipal Code after January 1, 1990, if such
ordinances do not take effect prior to September 1, 1990.
Section 999. Effective date. This Act takes effect upon
becoming law.
INDEX
Statutes amended in order of appearance
New Act
P.A. 85-1135, Art. I, Sec. 1
30 ILCS 105/5.240 from Ch. 127, par. 141.240
30 ILCS 105/5.241 from Ch. 127, par. 141.241
30 ILCS 105/6z-9 from Ch. 127, par. 142z-9
30 ILCS 105/6z-17 from Ch. 127, par. 142z-17
30 ILCS 105/6z-18 from Ch. 127, par. 142z-18
30 ILCS 115/0.1 from Ch. 85, par. 610
30 ILCS 115/2 from Ch. 85, par. 612
35 ILCS 105/3 from Ch. 120, par. 439.3
35 ILCS 105/3-5 from Ch. 120, par. 439.3-5
35 ILCS 105/3-10 from Ch. 120, par. 439.3-10
35 ILCS 105/3-15 from Ch. 120, par. 439.3-15
35 ILCS 105/3-20 from Ch. 120, par. 439.3-20
35 ILCS 105/3-25 from Ch. 120, par. 439.3-25
35 ILCS 105/3-30 from Ch. 120, par. 439.3-30
35 ILCS 105/3-35 from Ch. 120, par. 439.3-35
35 ILCS 105/3-40 from Ch. 120, par. 439.3-40
35 ILCS 105/3-45 from Ch. 120, par. 439.3-45
35 ILCS 105/3-50 from Ch. 120, par. 439.3-50
35 ILCS 105/3-55 from Ch. 120, par. 439.3-55
35 ILCS 105/3-60 from Ch. 120, par. 439.3-60
35 ILCS 105/3-65 from Ch. 120, par. 439.3-65
35 ILCS 105/3-70 from Ch. 120, par. 439.3-70
35 ILCS 105/3-75 from Ch. 120, par. 439.3-75
35 ILCS 105/3-80 from Ch. 120, par. 439.3-80
35 ILCS 105/9 from Ch. 120, par. 439.9
35 ILCS 110/2 from Ch. 120, par. 439.32
35 ILCS 110/3 from Ch. 120, par. 439.33
35 ILCS 110/3-5 from Ch. 120, par. 439.33-5
35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
35 ILCS 110/3-15 from Ch. 120, par. 439.33-15
35 ILCS 110/3-20 from Ch. 120, par. 439.33-20
35 ILCS 110/3-25 from Ch. 120, par. 439.33-25
35 ILCS 110/3-30 from Ch. 120, par. 439.33-30
35 ILCS 110/3-35 from Ch. 120, par. 439.33-35
35 ILCS 110/3-40 from Ch. 120, par. 439.33-40
35 ILCS 110/3-45 from Ch. 120, par. 439.33-45
35 ILCS 110/3-50 from Ch. 120, par. 439.33-50
35 ILCS 110/3-55 from Ch. 120, par. 439.33-55
35 ILCS 110/3-60 from Ch. 120, par. 439.33-60
35 ILCS 110/3-65 from Ch. 120, par. 439.33-65
35 ILCS 110/3d from Ch. 120, par. 439.33d
35 ILCS 110/7a from Ch. 120, par. 439.37a
35 ILCS 110/9 from Ch. 120, par. 439.39
35 ILCS 110/10 from Ch. 120, par. 439.40
35 ILCS 110/15 from Ch. 120, par. 439.45
35 ILCS 115/2 from Ch. 120, par. 439.102
35 ILCS 115/3 from Ch. 120, par. 439.103
35 ILCS 115/3-5 from Ch. 120, par. 439.103-5
35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
35 ILCS 115/3-15 from Ch. 120, par. 439.103-15
35 ILCS 115/3-20 from Ch. 120, par. 439.103-20
35 ILCS 115/3-25 from Ch. 120, par. 439.103-25
35 ILCS 115/3-30 from Ch. 120, par. 439.103-30
35 ILCS 115/3-35 from Ch. 120, par. 439.103-35
35 ILCS 115/3-40 from Ch. 120, par. 439.103-40
35 ILCS 115/3-45 from Ch. 120, par. 439.103-45
35 ILCS 115/3-50 from Ch. 120, par. 439.103-50
35 ILCS 115/9 from Ch. 120, par. 439.109
35 ILCS 115/13 from Ch. 120, par. 439.113
35 ILCS 115/15 from Ch. 120, par. 439.115
35 ILCS 115/439.110 rep.
35 ILCS 115/439.114 rep.
35 ILCS 120/2 from Ch. 120, par. 441
35 ILCS 120/2-5 from Ch. 120, par. 441-5
35 ILCS 120/2-10 from Ch. 120, par. 441-10
35 ILCS 120/2-15 from Ch. 120, par. 441-15
35 ILCS 120/2-20 from Ch. 120, par. 441-20
35 ILCS 120/2-25 from Ch. 120, par. 441-25
35 ILCS 120/2-30 from Ch. 120, par. 441-30
35 ILCS 120/2-35 from Ch. 120, par. 441-35
35 ILCS 120/2-40 from Ch. 120, par. 441-40
35 ILCS 120/2-45 from Ch. 120, par. 441-45
35 ILCS 120/2-50 from Ch. 120, par. 441-50
35 ILCS 120/2-55 from Ch. 120, par. 441-55
35 ILCS 120/2-60 from Ch. 120, par. 441-60
35 ILCS 120/2-65 from Ch. 120, par. 441-65
35 ILCS 120/3 from Ch. 120, par. 442
35 ILCS 120/5k from Ch. 120, par. 444k
55 ILCS 5/5-1006 from Ch. 34, par. 5-1006
55 ILCS 5/5-1007 from Ch. 34, par. 5-1007
55 ILCS 5/5-1008 from Ch. 34, par. 5-1008
55 ILCS 5/5-1009 from Ch. 34, par. 5-1009
55 ILCS 5/5-1024 from Ch. 34, par. 5-1024
Ch. 34, rep. par. 406a
Ch. 34, rep. par. 409.1
Ch. 34, rep. par. 409.1a
Ch. 34, rep. par. 409.2
Ch. 34, rep. par. 409.2a
Ch. 34, rep. par. 409.10
Ch. 34, rep. par. 409.10a
Ch. 34, rep. par. 409.10.1
65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1
65 ILCS 5/8-11-1.1 from Ch. 24, par. 8-11-1.1
65 ILCS 5/8-11-1.2 from Ch. 24, par. 8-11-1.2
65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3
65 ILCS 5/8-11-1.4 from Ch. 24, par. 8-11-1.4
65 ILCS 5/8-11-5 from Ch. 24, par. 8-11-5
65 ILCS 5/8-11-6 from Ch. 24, par. 8-11-6
65 ILCS 5/8-11-6a from Ch. 24, par. 8-11-6a
65 ILCS 5/8-11-16 from Ch. 24, par. 8-11-16
65 ILCS 5/11-74.4-8a from Ch. 24, par. 11-74.4-8a
70 ILCS 3610/5.01 from Ch. 111 2/3, par. 355.01
70 ILCS 3615/4.01 from Ch. 111 2/3, par. 704.01
70 ILCS 3615/4.03 from Ch. 111 2/3, par. 704.03
70 ILCS 3615/4.04 from Ch. 111 2/3, par. 704.04
70 ILCS 3615/4.09 from Ch. 111 2/3, par. 704.09
70 ILCS 3720/4 from Ch. 111 2/3, par. 254
P.A. 85-1135, Art. V, Sec. 1
P.A. 85-1135, Art. V, Sec. 2
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