Bill Text: IL HB3100 | 2015-2016 | 99th General Assembly | Introduced
Bill Title: Amends the Counties Code. Makes a technical change in a Section concerning school facility occupation taxes.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB3100 Detail]
Download: Illinois-2015-HB3100-Introduced.html
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1 | AN ACT concerning local government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Counties Code is amended by changing Section | |||||||||||||||||||
5 | 5-1006.7 as follows:
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6 | (55 ILCS 5/5-1006.7) | |||||||||||||||||||
7 | Sec. 5-1006.7. School facility occupation taxes. | |||||||||||||||||||
8 | (a) In any county, a tax shall be imposed upon all persons | |||||||||||||||||||
9 | engaged in the the business of selling tangible personal | |||||||||||||||||||
10 | property, other than personal property titled or registered | |||||||||||||||||||
11 | with an agency of this State's government, at retail in the | |||||||||||||||||||
12 | county on the gross receipts from the sales made in the course | |||||||||||||||||||
13 | of business to provide revenue to be used exclusively for | |||||||||||||||||||
14 | school facility purposes if a proposition for the tax has been | |||||||||||||||||||
15 | submitted to the electors of that county and approved by a | |||||||||||||||||||
16 | majority of those voting on the question as provided in | |||||||||||||||||||
17 | subsection (c). The tax under this Section shall be imposed | |||||||||||||||||||
18 | only in one-quarter percent increments and may not exceed 1%. | |||||||||||||||||||
19 | This additional tax may not be imposed on the sale of food | |||||||||||||||||||
20 | for human consumption that is to be consumed off the premises | |||||||||||||||||||
21 | where it is sold (other than alcoholic beverages, soft drinks, | |||||||||||||||||||
22 | and food that has been prepared for immediate consumption) and | |||||||||||||||||||
23 | prescription and non-prescription medicines, drugs, medical |
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1 | appliances and insulin, urine testing materials, syringes and | ||||||
2 | needles used by diabetics.
The Department of Revenue has full | ||||||
3 | power to administer and enforce this subsection, to collect all | ||||||
4 | taxes and penalties due under this subsection, to dispose of | ||||||
5 | taxes and penalties so collected in the manner provided in this | ||||||
6 | subsection, and to determine all rights to credit memoranda | ||||||
7 | arising on account of the erroneous payment of a tax or penalty | ||||||
8 | under this subsection. The Department shall deposit all taxes | ||||||
9 | and penalties collected under this subsection into a special | ||||||
10 | fund created for that purpose. | ||||||
11 | In the administration of and compliance with this | ||||||
12 | subsection, the Department and persons who are subject to this | ||||||
13 | subsection (i) have the same rights, remedies, privileges, | ||||||
14 | immunities, powers, and duties, (ii) are subject to the same | ||||||
15 | conditions, restrictions, limitations, penalties, and | ||||||
16 | definitions of terms, and (iii) shall employ the same modes of | ||||||
17 | procedure as are set forth in Sections 1 through 1o, 2 through | ||||||
18 | 2-70 (in respect to all provisions contained in those Sections | ||||||
19 | other than the State rate of tax), 2a through 2h, 3 (except as | ||||||
20 | to the disposition of taxes and penalties collected), 4, 5, 5a, | ||||||
21 | 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, | ||||||
22 | 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act | ||||||
23 | and all provisions of the Uniform Penalty and Interest Act as | ||||||
24 | if those provisions were set forth in this subsection. | ||||||
25 | The certificate of registration that is issued by the | ||||||
26 | Department to a retailer under the Retailers' Occupation Tax |
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1 | Act permits the retailer to engage in a business that is | ||||||
2 | taxable without registering separately with the Department | ||||||
3 | under an ordinance or resolution under this subsection. | ||||||
4 | Persons subject to any tax imposed under the authority | ||||||
5 | granted in this subsection may reimburse themselves for their | ||||||
6 | seller's tax liability by separately stating that tax as an | ||||||
7 | additional charge, which may be stated in combination, in a | ||||||
8 | single amount, with State tax that sellers are required to | ||||||
9 | collect under the Use Tax Act, pursuant to any bracketed | ||||||
10 | schedules set forth by the Department. | ||||||
11 | (b) If a tax has been imposed under subsection (a), then a | ||||||
12 | service occupation tax must also be imposed at the same rate | ||||||
13 | upon all persons engaged, in the county, in the business of | ||||||
14 | making sales of service, who, as an incident to making those | ||||||
15 | sales of service, transfer tangible personal property within | ||||||
16 | the county as an incident to a sale of service. | ||||||
17 | This tax may not be imposed on sales of food for human | ||||||
18 | consumption that is to be consumed off the premises where it is | ||||||
19 | sold (other than alcoholic beverages, soft drinks, and food | ||||||
20 | prepared for immediate consumption) and prescription and | ||||||
21 | non-prescription medicines, drugs, medical appliances and | ||||||
22 | insulin, urine testing materials, syringes, and needles used by | ||||||
23 | diabetics. | ||||||
24 | The tax imposed under this subsection and all civil | ||||||
25 | penalties that may be assessed as an incident thereof shall be | ||||||
26 | collected and enforced by the Department and deposited into a |
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1 | special fund created for that purpose. The Department has full | ||||||
2 | power to administer and enforce this subsection, to collect all | ||||||
3 | taxes and penalties due under this subsection, to dispose of | ||||||
4 | taxes and penalties so collected in the manner provided in this | ||||||
5 | subsection, and to determine all rights to credit memoranda | ||||||
6 | arising on account of the erroneous payment of a tax or penalty | ||||||
7 | under this subsection. | ||||||
8 | In the administration of and compliance with this | ||||||
9 | subsection, the Department and persons who are subject to this | ||||||
10 | subsection shall (i) have the same rights, remedies, | ||||||
11 | privileges, immunities, powers and duties, (ii) be subject to | ||||||
12 | the same conditions, restrictions, limitations, penalties and | ||||||
13 | definition of terms, and (iii) employ the same modes of | ||||||
14 | procedure as are set forth in Sections 2 (except that that | ||||||
15 | reference to State in the definition of supplier maintaining a | ||||||
16 | place of business in this State means the county), 2a through | ||||||
17 | 2d, 3 through 3-50 (in respect to all provisions contained in | ||||||
18 | those Sections other than the State rate of tax), 4 (except | ||||||
19 | that the reference to the State shall be to the county), 5, 7, | ||||||
20 | 8 (except that the jurisdiction to which the tax is a debt to | ||||||
21 | the extent indicated in that Section 8 is the county), 9 | ||||||
22 | (except as to the disposition of taxes and penalties | ||||||
23 | collected), 10, 11, 12 (except the reference therein to Section | ||||||
24 | 2b of the Retailers' Occupation Tax Act), 13 (except that any | ||||||
25 | reference to the State means the county), Section 15, 16, 17, | ||||||
26 | 18, 19, and 20 of the Service Occupation Tax Act and all |
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1 | provisions of the Uniform Penalty and Interest Act, as fully as | ||||||
2 | if those provisions were set forth herein. | ||||||
3 | Persons subject to any tax imposed under the authority | ||||||
4 | granted in this subsection may reimburse themselves for their | ||||||
5 | serviceman's tax liability by separately stating the tax as an | ||||||
6 | additional charge, which may be stated in combination, in a | ||||||
7 | single amount, with State tax that servicemen are authorized to | ||||||
8 | collect under the Service Use Tax Act, pursuant to any | ||||||
9 | bracketed schedules set forth by the Department. | ||||||
10 | (c) The tax under this Section may not be imposed until the | ||||||
11 | question of imposing the tax has been submitted to the electors | ||||||
12 | of the county at a regular election and approved by a majority | ||||||
13 | of the electors voting on the question. For all regular | ||||||
14 | elections held prior to the effective date of this amendatory | ||||||
15 | Act of the 97th General Assembly, upon a resolution by the | ||||||
16 | county board or a resolution by school district boards that | ||||||
17 | represent at least 51% of the student enrollment within the | ||||||
18 | county, the county board must certify the question to the | ||||||
19 | proper election authority in accordance with the Election Code. | ||||||
20 | For all regular elections held prior to the effective date | ||||||
21 | of this amendatory Act of the 97th General Assembly, the | ||||||
22 | election authority must submit the question in substantially | ||||||
23 | the following form: | ||||||
24 | Shall (name of county) be authorized to impose a | ||||||
25 | retailers' occupation tax and a service occupation tax | ||||||
26 | (commonly referred to as a "sales tax") at a rate of |
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1 | (insert rate) to be used exclusively for school facility | ||||||
2 | purposes? | ||||||
3 | The election authority must record the votes as "Yes" or "No". | ||||||
4 | If a majority of the electors voting on the question vote | ||||||
5 | in the affirmative, then the county may, thereafter, impose the | ||||||
6 | tax. | ||||||
7 | For all regular elections held on or after the effective | ||||||
8 | date of this amendatory Act of the 97th General Assembly, the | ||||||
9 | regional superintendent of schools for the county must, upon | ||||||
10 | receipt of a resolution or resolutions of school district | ||||||
11 | boards that represent more than 50% of the student enrollment | ||||||
12 | within the county, certify the question to the proper election | ||||||
13 | authority for submission to the electors of the county at the | ||||||
14 | next regular election at which the question lawfully may be | ||||||
15 | submitted to the electors, all in accordance with the Election | ||||||
16 | Code. | ||||||
17 | For all regular elections held on or after the effective | ||||||
18 | date of this amendatory Act of the 97th General Assembly, the | ||||||
19 | election authority must submit the question in substantially | ||||||
20 | the following form: | ||||||
21 | Shall a retailers' occupation tax and a service | ||||||
22 | occupation tax (commonly referred to as a "sales tax") be | ||||||
23 | imposed in (name of county) at a rate of (insert rate) to | ||||||
24 | be used exclusively for school facility purposes? | ||||||
25 | The election authority must record the votes as "Yes" or "No". | ||||||
26 | If a majority of the electors voting on the question vote |
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1 | in the affirmative, then the tax shall be imposed at the rate | ||||||
2 | set forth in the question. | ||||||
3 | For the purposes of this subsection (c), "enrollment" means | ||||||
4 | the head count of the students residing in the county on the | ||||||
5 | last school day of September of each year, which must be | ||||||
6 | reported on the Illinois State Board of Education Public School | ||||||
7 | Fall Enrollment/Housing Report.
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8 | (d) The Department shall immediately pay over to the State | ||||||
9 | Treasurer, ex officio, as trustee, all taxes and penalties | ||||||
10 | collected under this Section to be deposited into the School | ||||||
11 | Facility Occupation Tax Fund, which shall be an unappropriated | ||||||
12 | trust fund held outside the State treasury. | ||||||
13 | On or before the 25th day of each calendar month, the | ||||||
14 | Department shall prepare and certify to the Comptroller the | ||||||
15 | disbursement of stated sums of money to the regional | ||||||
16 | superintendents of schools in counties from which retailers or | ||||||
17 | servicemen have paid taxes or penalties to the Department | ||||||
18 | during the second preceding calendar month. The amount to be | ||||||
19 | paid to each regional superintendent of schools and disbursed | ||||||
20 | to him or her in accordance with Section 3-14.31 of the School | ||||||
21 | Code, is equal to the amount (not including credit memoranda) | ||||||
22 | collected from the county under this Section during the second | ||||||
23 | preceding calendar month by the Department, (i) less 2% of that | ||||||
24 | amount, which shall be deposited into the Tax Compliance and | ||||||
25 | Administration Fund and shall be used by the Department, | ||||||
26 | subject to appropriation, to cover the costs of the Department |
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1 | in administering and enforcing the provisions of this Section, | ||||||
2 | on behalf of the county, (ii) plus an amount that the | ||||||
3 | Department determines is necessary to offset any amounts that | ||||||
4 | were erroneously paid to a different taxing body; (iii) less an | ||||||
5 | amount equal to the amount of refunds made during the second | ||||||
6 | preceding calendar month by the Department on behalf of the | ||||||
7 | county; and (iv) less any amount that the Department determines | ||||||
8 | is necessary to offset any amounts that were payable to a | ||||||
9 | different taxing body but were erroneously paid to the county. | ||||||
10 | When certifying the amount of a monthly disbursement to a | ||||||
11 | regional superintendent of schools under this Section, the | ||||||
12 | Department shall increase or decrease the amounts by an amount | ||||||
13 | necessary to offset any miscalculation of previous | ||||||
14 | disbursements within the previous 6 months from the time a | ||||||
15 | miscalculation is discovered. | ||||||
16 | Within 10 days after receipt by the Comptroller from the | ||||||
17 | Department of the disbursement certification to the regional | ||||||
18 | superintendents of the schools provided for in this Section, | ||||||
19 | the Comptroller shall cause the orders to be drawn for the | ||||||
20 | respective amounts in accordance with directions contained in | ||||||
21 | the certification. | ||||||
22 | If the Department determines that a refund should be made | ||||||
23 | under this Section to a claimant instead of issuing a credit | ||||||
24 | memorandum, then the Department shall notify the Comptroller, | ||||||
25 | who shall cause the order to be drawn for the amount specified | ||||||
26 | and to the person named in the notification from the |
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1 | Department. The refund shall be paid by the Treasurer out of | ||||||
2 | the School Facility Occupation Tax Fund.
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3 | (e) For the purposes of determining the local governmental | ||||||
4 | unit whose tax is applicable, a retail sale by a producer of | ||||||
5 | coal or another mineral mined in Illinois is a sale at retail | ||||||
6 | at the place where the coal or other mineral mined in Illinois | ||||||
7 | is extracted from the earth. This subsection does not apply to | ||||||
8 | coal or another mineral when it is delivered or shipped by the | ||||||
9 | seller to the purchaser at a point outside Illinois so that the | ||||||
10 | sale is exempt under the United States Constitution as a sale | ||||||
11 | in interstate or foreign commerce. | ||||||
12 | (f) Nothing in this Section may be construed to authorize a | ||||||
13 | tax to be imposed upon the privilege of engaging in any | ||||||
14 | business that under the Constitution of the United States may | ||||||
15 | not be made the subject of taxation by this State. | ||||||
16 | (g) If a county board imposes a tax under this Section | ||||||
17 | pursuant to a referendum held before the effective date of this | ||||||
18 | amendatory Act of the 97th General Assembly at a rate below the | ||||||
19 | rate set forth in the question approved by a majority of | ||||||
20 | electors of that county voting on the question as provided in | ||||||
21 | subsection (c), then the county board may, by ordinance, | ||||||
22 | increase the rate of the tax up to the rate set forth in the | ||||||
23 | question approved by a majority of electors of that county | ||||||
24 | voting on the question as provided in subsection (c). If a | ||||||
25 | county board imposes a tax under this Section pursuant to a | ||||||
26 | referendum held before the effective date of this amendatory |
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1 | Act of the 97th General Assembly, then the board may, by | ||||||
2 | ordinance, discontinue or reduce the rate of the tax. If a tax | ||||||
3 | is imposed under this Section pursuant to a referendum held on | ||||||
4 | or after the effective date of this amendatory Act of the 97th | ||||||
5 | General Assembly, then the county board may reduce or | ||||||
6 | discontinue the tax, but only in accordance with subsection | ||||||
7 | (h-5) of this Section. If, however, a school board issues bonds | ||||||
8 | that are secured by the proceeds of the tax under this Section, | ||||||
9 | then the county board may not reduce the tax rate or | ||||||
10 | discontinue the tax if that rate reduction or discontinuance | ||||||
11 | would adversely affect the school board's ability to pay the | ||||||
12 | principal and interest on those bonds as they become due or | ||||||
13 | necessitate the extension of additional property taxes to pay | ||||||
14 | the principal and interest on those bonds. If the county board | ||||||
15 | reduces the tax rate or discontinues the tax, then a referendum | ||||||
16 | must be held in accordance with subsection (c) of this Section | ||||||
17 | in order to increase the rate of the tax or to reimpose the | ||||||
18 | discontinued tax. | ||||||
19 | Until January 1, 2014, the results of any election that | ||||||
20 | imposes, reduces, or discontinues a tax under this Section must | ||||||
21 | be certified by the election authority, and any ordinance that | ||||||
22 | increases or lowers the rate or discontinues the tax must be | ||||||
23 | certified by the county clerk and, in each case, filed with the | ||||||
24 | Illinois Department of Revenue either (i) on or before the | ||||||
25 | first day of April, whereupon the Department shall proceed to | ||||||
26 | administer and enforce the tax or change in the rate as of the |
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1 | first day of July next following the filing; or (ii) on or | ||||||
2 | before the first day of October, whereupon the Department shall | ||||||
3 | proceed to administer and enforce the tax or change in the rate | ||||||
4 | as of the first day of January next following the filing. | ||||||
5 | Beginning January 1, 2014, the results of any election that | ||||||
6 | imposes, reduces, or discontinues a tax under this Section must | ||||||
7 | be certified by the election authority, and any ordinance that | ||||||
8 | increases or lowers the rate or discontinues the tax must be | ||||||
9 | certified by the county clerk and, in each case, filed with the | ||||||
10 | Illinois Department of Revenue either (i) on or before the | ||||||
11 | first day of May, whereupon the Department shall proceed to | ||||||
12 | administer and enforce the tax or change in the rate as of the | ||||||
13 | first day of July next following the filing; or (ii) on or | ||||||
14 | before the first day of October, whereupon the Department shall | ||||||
15 | proceed to administer and enforce the tax or change in the rate | ||||||
16 | as of the first day of January next following the filing. | ||||||
17 | (h) For purposes of this Section, "school facility | ||||||
18 | purposes" means (i) the acquisition, development, | ||||||
19 | construction, reconstruction, rehabilitation, improvement, | ||||||
20 | financing, architectural planning, and installation of capital | ||||||
21 | facilities consisting of buildings, structures, and durable | ||||||
22 | equipment and for the acquisition and improvement of real | ||||||
23 | property and interest in real property required, or expected to | ||||||
24 | be required, in connection with the capital facilities and (ii) | ||||||
25 | the payment of bonds or other obligations heretofore or | ||||||
26 | hereafter issued, including bonds or other obligations |
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1 | heretofore or hereafter issued to refund or to continue to | ||||||
2 | refund bonds or other obligations issued, for school facility | ||||||
3 | purposes, provided that the taxes levied to pay those bonds are | ||||||
4 | abated by the amount of the taxes imposed under this Section | ||||||
5 | that are used to pay those bonds. "School-facility purposes" | ||||||
6 | also includes fire prevention, safety, energy conservation, | ||||||
7 | disabled accessibility, school security, and specified repair | ||||||
8 | purposes set forth under Section 17-2.11 of the School Code. | ||||||
9 | (h-5) A county board in a county where a tax has been | ||||||
10 | imposed under this Section pursuant to a referendum held on or | ||||||
11 | after the effective date of this amendatory Act of the 97th | ||||||
12 | General Assembly may, by ordinance or resolution, submit to the | ||||||
13 | voters of the county the question of reducing or discontinuing | ||||||
14 | the tax. In the ordinance or resolution, the county board shall | ||||||
15 | certify the question to the proper election authority in | ||||||
16 | accordance with the Election Code. The election authority must | ||||||
17 | submit the question in substantially the following form: | ||||||
18 | Shall the school facility retailers' occupation tax | ||||||
19 | and service occupation tax (commonly referred to as the | ||||||
20 | "school facility sales tax") currently imposed in (name of | ||||||
21 | county) at a rate of (insert rate) be (reduced to (insert | ||||||
22 | rate))(discontinued)? | ||||||
23 | If a majority of the electors voting on the question vote in | ||||||
24 | the affirmative, then, subject to the provisions of subsection | ||||||
25 | (g) of this Section, the tax shall be reduced or discontinued | ||||||
26 | as set forth in the question. |
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1 | (i) This Section does not apply to Cook County. | ||||||
2 | (j) This Section may be cited as the County School Facility | ||||||
3 | Occupation Tax Law.
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4 | (Source: P.A. 97-542, eff. 8-23-11; 97-813, eff. 7-13-12; | ||||||
5 | 98-584, eff. 8-27-13.)
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