Illinois-2017-HB4489-Introduced

100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB4489

Introduced , by Rep. John M. Cabello

SYNOPSIS AS INTRODUCED:

55 ILCS 5/5-1006.7

Amends the Counties Code. Modifies the format of the referendum question for counties seeking to impose a school facility occupation tax to include a brief description of the project for which the revenue from the tax will be used and a definite period of time during which the tax will be imposed. Effective immediately.

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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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1 AN ACT concerning local government.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 5. The Counties Code is amended by changing Section

5 5-1006.7 as follows:

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 business of selling tangible personal property,

10 other than personal property titled or registered with an

11 agency of this State's government, at retail in the county on

12 the gross receipts from the sales made in the course of

13 business to provide revenue to be used exclusively for school

14 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, 6d,

22 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation

23 Tax Act and all provisions of the Uniform Penalty and Interest

24 Act as 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 August 23, 2011 (the effective date of

15 Public Act 97-542), upon a resolution by the county board or a

16 resolution by school district boards that represent at least

17 51% of the student enrollment within the county, the county

18 board must certify the question to the proper election

19 authority in accordance with the Election Code.

20 For all regular elections held prior to August 23, 2011

21 (the effective date of Public Act 97-542), the election

22 authority must submit the question in substantially the

23 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 August 23, 2011

8 (the effective date of Public Act 97-542), the regional

9 superintendent of schools for the county must, upon receipt of

10 a resolution or resolutions of school district boards that

11 represent more than 50% of the student enrollment within the

12 county, certify the question to the proper election authority

13 for submission to the electors of the county at the next

14 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 August 23, 2011

18 (the effective date of Public Act 97-542) and until the

19 effective date of this amendatory Act of the 100th General

20 Assembly, the election authority must submit the question in

21 substantially the following form:

22 Shall a retailers' occupation tax and a service

23 occupation tax (commonly referred to as a "sales tax") be

24 imposed in (name of county) at a rate of (insert rate) to

25 be used exclusively for school facility purposes?

26 The election authority must record the votes as "Yes" or "No".

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1 If a majority of the electors voting on the question vote

2 in the affirmative, then the tax shall be imposed at the rate

3 set forth in the question.

4 For all regular elections held on or after the effective

5 date of this amendatory Act of the 100th General Assembly, the

6 election authority must submit the question in substantially

7 the following form:

8 Shall a retailers' occupation tax and a service

9 occupation tax (commonly referred to as a "sales tax") be

10 imposed in [name of county] at a rate of [insert rate] to

11 be used exclusively for [description of school facility

12 project or projects] for a period of [insert number] years?

13 The election authority must record the votes as "Yes" or

14 "No".

15 If a majority of the electors voting on the question vote

16 in the affirmative, then the tax shall be imposed at the rate

17 set forth in the question for a period not to exceed the time

18 stated.

19 For the purposes of this subsection (c), "enrollment" means

20 the head count of the students residing in the county on the

21 last school day of September of each year, which must be

22 reported on the Illinois State Board of Education Public School

23 Fall Enrollment/Housing Report.

24 (d) The Department shall immediately pay over to the State

25 Treasurer, ex officio, as trustee, all taxes and penalties

26 collected under this Section to be deposited into the School

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1 Facility Occupation Tax Fund, which shall be an unappropriated

2 trust fund held outside the State treasury.

3 On or before the 25th day of each calendar month, the

4 Department shall prepare and certify to the Comptroller the

5 disbursement of stated sums of money to the regional

6 superintendents of schools in counties from which retailers or

7 servicemen have paid taxes or penalties to the Department

8 during the second preceding calendar month. The amount to be

9 paid to each regional superintendent of schools and disbursed

10 to him or her in accordance with Section 3-14.31 of the School

11 Code, is equal to the amount (not including credit memoranda)

12 collected from the county under this Section during the second

13 preceding calendar month by the Department, (i) less 2% of that

14 amount, which shall be deposited into the Tax Compliance and

15 Administration Fund and shall be used by the Department,

16 subject to appropriation, to cover the costs of the Department

17 in administering and enforcing the provisions of this Section,

18 on behalf of the county, (ii) plus an amount that the

19 Department determines is necessary to offset any amounts that

20 were erroneously paid to a different taxing body; (iii) less an

21 amount equal to the amount of refunds made during the second

22 preceding calendar month by the Department on behalf of the

23 county; and (iv) less any amount that the Department determines

24 is necessary to offset any amounts that were payable to a

25 different taxing body but were erroneously paid to the county.

26 When certifying the amount of a monthly disbursement to a

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1 regional superintendent of schools under this Section, the

2 Department shall increase or decrease the amounts by an amount

3 necessary to offset any miscalculation of previous

4 disbursements within the previous 6 months from the time a

5 miscalculation is discovered.

6 Within 10 days after receipt by the Comptroller from the

7 Department of the disbursement certification to the regional

8 superintendents of the schools provided for in this Section,

9 the Comptroller shall cause the orders to be drawn for the

10 respective amounts in accordance with directions contained in

11 the certification.

12 If the Department determines that a refund should be made

13 under this Section to a claimant instead of issuing a credit

14 memorandum, then the Department shall notify the Comptroller,

15 who shall cause the order to be drawn for the amount specified

16 and to the person named in the notification from the

17 Department. The refund shall be paid by the Treasurer out of

18 the School Facility Occupation Tax Fund.

19 (e) For the purposes of determining the local governmental

20 unit whose tax is applicable, a retail sale by a producer of

21 coal or another mineral mined in Illinois is a sale at retail

22 at the place where the coal or other mineral mined in Illinois

23 is extracted from the earth. This subsection does not apply to

24 coal or another mineral when it is delivered or shipped by the

25 seller to the purchaser at a point outside Illinois so that the

26 sale is exempt under the United States Constitution as a sale

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1 in interstate or foreign commerce.

2 (f) Nothing in this Section may be construed to authorize a

3 tax to be imposed upon the privilege of engaging in any

4 business that under the Constitution of the United States may

5 not be made the subject of taxation by this State.

6 (g) If a county board imposes a tax under this Section

7 pursuant to a referendum held before August 23, 2011 (the

8 effective date of Public Act 97-542) at a rate below the rate

9 set forth in the question approved by a majority of electors of

10 that county voting on the question as provided in subsection

11 (c), then the county board may, by ordinance, increase the rate

12 of the tax up to the rate set forth in the question approved by

13 a majority of electors of that county voting on the question as

14 provided in subsection (c). If a county board imposes a tax

15 under this Section pursuant to a referendum held before August

16 23, 2011 (the effective date of Public Act 97-542), then the

17 board may, by ordinance, discontinue or reduce the rate of the

18 tax. If a tax is imposed under this Section pursuant to a

19 referendum held on or after August 23, 2011 (the effective date

20 of Public Act 97-542), then the county board may reduce or

21 discontinue the tax, but only in accordance with subsection

22 (h-5) of this Section. If, however, a school board issues bonds

23 that are secured by the proceeds of the tax under this Section,

24 then the county board may not reduce the tax rate or

25 discontinue the tax if that rate reduction or discontinuance

26 would adversely affect the school board's ability to pay the

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1 principal and interest on those bonds as they become due or

2 necessitate the extension of additional property taxes to pay

3 the principal and interest on those bonds. If the county board

4 reduces the tax rate or discontinues the tax, then a referendum

5 must be held in accordance with subsection (c) of this Section

6 in order to increase the rate of the tax or to reimpose the

7 discontinued tax.

8 Until January 1, 2014, the results of any election that

9 imposes, reduces, or discontinues a tax under this Section must

10 be certified by the election authority, and any ordinance that

11 increases or lowers the rate or discontinues the tax must be

12 certified by the county clerk and, in each case, filed with the

13 Illinois Department of Revenue either (i) on or before the

14 first day of April, whereupon the Department shall proceed to

15 administer and enforce the tax or change in the rate as of the

16 first day of July next following the filing; or (ii) on or

17 before the first day of October, whereupon the Department shall

18 proceed to administer and enforce the tax or change in the rate

19 as of the first day of January next following the filing.

20 Beginning January 1, 2014, the results of any election that

21 imposes, reduces, or discontinues a tax under this Section must

22 be certified by the election authority, and any ordinance that

23 increases or lowers the rate or discontinues the tax must be

24 certified by the county clerk and, in each case, filed with the

25 Illinois Department of Revenue either (i) on or before the

26 first day of May, whereupon the Department shall proceed to

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1 administer and enforce the tax or change in the rate as of the

2 first day of July next following the filing; or (ii) on or

3 before the first day of October, whereupon the Department shall

4 proceed to administer and enforce the tax or change in the rate

5 as of the first day of January next following the filing.

6 (h) For purposes of this Section, "school facility

7 purposes" means (i) the acquisition, development,

8 construction, reconstruction, rehabilitation, improvement,

9 financing, architectural planning, and installation of capital

10 facilities consisting of buildings, structures, and durable

11 equipment and for the acquisition and improvement of real

12 property and interest in real property required, or expected to

13 be required, in connection with the capital facilities and (ii)

14 the payment of bonds or other obligations heretofore or

15 hereafter issued, including bonds or other obligations

16 heretofore or hereafter issued to refund or to continue to

17 refund bonds or other obligations issued, for school facility

18 purposes, provided that the taxes levied to pay those bonds are

19 abated by the amount of the taxes imposed under this Section

20 that are used to pay those bonds. "School-facility purposes"

21 also includes fire prevention, safety, energy conservation,

22 accessibility, school security, and specified repair purposes

23 set forth under Section 17-2.11 of the School Code.

24 (h-5) A county board in a county where a tax has been

25 imposed under this Section pursuant to a referendum held on or

26 after August 23, 2011 (the effective date of Public Act 97-542)

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1 may, by ordinance or resolution, submit to the voters of the

2 county the question of reducing or discontinuing the tax. In

3 the ordinance or resolution, the county board shall certify the

4 question to the proper election authority in accordance with

5 the Election Code. The election authority must submit the

6 question in substantially the following form:

7 Shall the school facility retailers' occupation tax

8 and service occupation tax (commonly referred to as the

9 "school facility sales tax") currently imposed in (name of

10 county) at a rate of (insert rate) be (reduced to (insert

11 rate))(discontinued)?

12 If a majority of the electors voting on the question vote in

13 the affirmative, then, subject to the provisions of subsection

14 (g) of this Section, the tax shall be reduced or discontinued

15 as set forth in the question.

16 (i) This Section does not apply to Cook County.

17 (j) This Section may be cited as the County School Facility

18 Occupation Tax Law.

19 (Source: P.A. 98-584, eff. 8-27-13; 99-143, eff. 7-27-15;

20 99-217, eff. 7-31-15; 99-642, eff. 7-28-16.)

21 Section 99. Effective date. This Act takes effect upon

22 becoming law.