Bill Text: IL SB2170 | 2011-2012 | 97th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Counties Code. Requires the imposition of a school facility occupation tax in a county if the electors of the county have approved a proposition for the tax. Provides that a school facility occupation tax imposed by approval of the electors may be reduced or discontinued if the electors have voted to reduce or discontinue the tax. Provides that the State will not limit or alter rights and powers so as to impair the rights and remedies of holders of bonds secured by proceeds of a school facility occupation tax. Amends the Local Government Debt Reform Act. Removes a sentence providing that a backdoor referendum is not required for alternate bonds if the proceeds backing the alternate bonds are realized from revenues obtained from a school facility occupation tax. Amends the School Code. Provides that a referendum shall not be required if the purchase, construction, or building of a school building is paid from funds received from the County School Facility Occupation Tax Law or from the proceeds of bonds secured by revenues obtained from that Law. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 5-1)

Status: (Passed) 2011-08-23 - Public Act . . . . . . . . . 97-0542 [SB2170 Detail]

Download: Illinois-2011-SB2170-Amended.html

Sen. James F. Clayborne, Jr.

Filed: 4/12/2011

09700SB2170sam003LRB097 09013 PJG 53947 a
1
AMENDMENT TO SENATE BILL 2170
2 AMENDMENT NO. ______. Amend Senate Bill 2170, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
5 "Section 5. The Local Government Debt Reform Act is amended
6by changing Section 15 as follows:
7 (30 ILCS 350/15) (from Ch. 17, par. 6915)
8 Sec. 15. Double-barrelled bonds. Whenever revenue bonds
9have been authorized to be issued pursuant to applicable law or
10whenever there exists for a governmental unit a revenue source,
11the procedures set forth in this Section may be used by a
12governing body. General obligation bonds may be issued in lieu
13of such revenue bonds as authorized, and general obligation
14bonds may be issued payable from any revenue source. Such
15general obligation bonds may be referred to as "alternate
16bonds". Alternate bonds may be issued without any referendum or

09700SB2170sam003- 2 -LRB097 09013 PJG 53947 a
1backdoor referendum except as provided in this Section, upon
2the terms provided in Section 10 of this Act without reference
3to other provisions of law, but only upon the conditions
4provided in this Section. Alternate bonds shall not be regarded
5as or included in any computation of indebtedness for the
6purpose of any statutory provision or limitation except as
7expressly provided in this Section.
8 Such conditions are:
9 (a) Alternate bonds shall be issued for a lawful corporate
10purpose. If issued in lieu of revenue bonds, alternate bonds
11shall be issued for the purposes for which such revenue bonds
12shall have been authorized. If issued payable from a revenue
13source in the manner hereinafter provided, which revenue source
14is limited in its purposes or applications, then the alternate
15bonds shall be issued only for such limited purposes or
16applications. Alternate bonds may be issued payable from either
17enterprise revenues or revenue sources, or both.
18 (b) Alternate bonds shall be subject to backdoor
19referendum. The provisions of Section 5 of this Act shall apply
20to such backdoor referendum, together with the provisions
21hereof. The authorizing ordinance shall be published in a
22newspaper of general circulation in the governmental unit.
23Along with or as part of the authorizing ordinance, there shall
24be published a notice of (1) the specific number of voters
25required to sign a petition requesting that the issuance of the
26alternate bonds be submitted to referendum, (2) the time when

09700SB2170sam003- 3 -LRB097 09013 PJG 53947 a
1such petition must be filed, (3) the date of the prospective
2referendum, and (4), with respect to authorizing ordinances
3adopted on or after January 1, 1991, a statement that
4identifies any revenue source that will be used to pay debt
5service on the alternate bonds. The clerk or secretary of the
6governmental unit shall make a petition form available to
7anyone requesting one. If no petition is filed with the clerk
8or secretary within 30 days of publication of the authorizing
9ordinance and notice, the alternate bonds shall be authorized
10to be issued. But if within this 30 days period, a petition is
11filed with such clerk or secretary signed by electors numbering
12the greater of (i) 7.5% of the registered voters in the
13governmental unit or (ii) 200 of those registered voters or 15%
14of those registered voters, whichever is less, asking that the
15issuance of such alternate bonds be submitted to referendum,
16the clerk or secretary shall certify such question for
17submission at an election held in accordance with the general
18election law. The question on the ballot shall include a
19statement of any revenue source that will be used to pay debt
20service on the alternate bonds. The alternate bonds shall be
21authorized to be issued if a majority of the votes cast on the
22question at such election are in favor thereof provided that
23notice of the bond referendum, if held before July 1, 1999, has
24been given in accordance with the provisions of Section 12-5 of
25the Election Code in effect at the time of the bond referendum,
26at least 10 and not more than 45 days before the date of the

09700SB2170sam003- 4 -LRB097 09013 PJG 53947 a
1election, notwithstanding the time for publication otherwise
2imposed by Section 12-5. Notices required in connection with
3the submission of public questions on or after July 1, 1999
4shall be as set forth in Section 12-5 of the Election Code.
5Backdoor referendum proceedings for bonds and alternate bonds
6to be issued in lieu of such bonds may be conducted at the same
7time.
8 (c) To the extent payable from enterprise revenues, such
9revenues shall have been determined by the governing body to be
10sufficient to provide for or pay in each year to final maturity
11of such alternate bonds all of the following: (1) costs of
12operation and maintenance of the utility or enterprise, but not
13including depreciation, (2) debt service on all outstanding
14revenue bonds payable from such enterprise revenues, (3) all
15amounts required to meet any fund or account requirements with
16respect to such outstanding revenue bonds, (4) other
17contractual or tort liability obligations, if any, payable from
18such enterprise revenues, and (5) in each year, an amount not
19less than 1.25 times debt service of all (i) alternate bonds
20payable from such enterprise revenues previously issued and
21outstanding and (ii) alternate bonds proposed to be issued. To
22the extent payable from one or more revenue sources, such
23sources shall have been determined by the governing body to
24provide in each year, an amount not less than 1.25 times debt
25service of all alternate bonds payable from such revenue
26sources previously issued and outstanding and alternate bonds

09700SB2170sam003- 5 -LRB097 09013 PJG 53947 a
1proposed to be issued. The 1.25 figure in the preceding
2sentence shall be reduced to 1.10 if the revenue source is a
3governmental revenue source. The conditions enumerated in this
4subsection (c) need not be met for that amount of debt service
5provided for by the setting aside of proceeds of bonds or other
6moneys at the time of the delivery of such bonds.
7Notwithstanding any other provision of this Section, a backdoor
8referendum is not required if the proceeds backing the debt are
9realized from revenues obtained from the County School Facility
10Occupation Tax Law under Section 5-1006.7 of the Counties Code.
11 (c-1) In the case of alternate bonds issued as variable
12rate bonds (including refunding bonds), debt service shall be
13projected based on the rate for the most recent date shown in
14the 20 G.O. Bond Index of average municipal bond yields as
15published in the most recent edition of The Bond Buyer
16published in New York, New York (or any successor publication
17or index, or if such publication or index is no longer
18published, then any index of long-term municipal tax-exempt
19bond yields selected by the governmental unit), as of the date
20of determination referred to in subsection (c) of this Section.
21Any interest or fees that may be payable to the provider of a
22letter of credit, line of credit, surety bond, bond insurance,
23or other credit enhancement relating to such alternate bonds
24and any fees that may be payable to any remarketing agent need
25not be taken into account for purposes of such projection. If
26the governmental unit enters into an agreement in connection

09700SB2170sam003- 6 -LRB097 09013 PJG 53947 a
1with such alternate bonds at the time of issuance thereof
2pursuant to which the governmental unit agrees for a specified
3period of time to pay an amount calculated at an agreed-upon
4rate or index based on a notional amount and the other party
5agrees to pay the governmental unit an amount calculated at an
6agreed-upon rate or index based on such notional amount,
7interest shall be projected for such specified period of time
8on the basis of the agreed-upon rate payable by the
9governmental unit.
10 (d) The determination of the sufficiency of enterprise
11revenues or a revenue source, as applicable, shall be supported
12by reference to the most recent audit of the governmental unit,
13which shall be for a fiscal year ending not earlier than 18
14months previous to the time of issuance of the alternate bonds.
15If such audit does not adequately show such enterprise revenues
16or revenue source, as applicable, or if such enterprise
17revenues or revenue source, as applicable, are shown to be
18insufficient, then the determination of sufficiency shall be
19supported by the report of an independent accountant or
20feasibility analyst, the latter having a national reputation
21for expertise in such matters, demonstrating the sufficiency of
22such revenues and explaining, if appropriate, by what means the
23revenues will be greater than as shown in the audit. Whenever
24such sufficiency is demonstrated by reference to a schedule of
25higher rates or charges for enterprise revenues or a higher tax
26imposition for a revenue source, such higher rates, charges or

09700SB2170sam003- 7 -LRB097 09013 PJG 53947 a
1taxes shall have been properly imposed by an ordinance adopted
2prior to the time of delivery of alternate bonds. The reference
3to and acceptance of an audit or report, as the case may be,
4and the determination of the governing body as to sufficiency
5of enterprise revenues or a revenue source shall be conclusive
6evidence that the conditions of this Section have been met and
7that the alternate bonds are valid.
8 (e) The enterprise revenues or revenue source, as
9applicable, shall be in fact pledged to the payment of the
10alternate bonds; and the governing body shall covenant, to the
11extent it is empowered to do so, to provide for, collect and
12apply such enterprise revenues or revenue source, as
13applicable, to the payment of the alternate bonds and the
14provision of not less than an additional .25 (or .10 for
15governmental revenue sources) times debt service. The pledge
16and establishment of rates or charges for enterprise revenues,
17or the imposition of taxes in a given rate or amount, as
18provided in this Section for alternate bonds, shall constitute
19a continuing obligation of the governmental unit with respect
20to such establishment or imposition and a continuing
21appropriation of the amounts received. All covenants relating
22to alternate bonds and the conditions and obligations imposed
23by this Section are enforceable by any bondholder of alternate
24bonds affected, any taxpayer of the governmental unit, and the
25People of the State of Illinois acting through the Attorney
26General or any designee, and in the event that any such action

09700SB2170sam003- 8 -LRB097 09013 PJG 53947 a
1results in an order finding that the governmental unit has not
2properly set rates or charges or imposed taxes to the extent it
3is empowered to do so or collected and applied enterprise
4revenues or any revenue source, as applicable, as required by
5this Act, the plaintiff in any such action shall be awarded
6reasonable attorney's fees. The intent is that such enterprise
7revenues or revenue source, as applicable, shall be sufficient
8and shall be applied to the payment of debt service on such
9alternate bonds so that taxes need not be levied, or if levied
10need not be extended, for such payment. Nothing in this Section
11shall inhibit or restrict the authority of a governing body to
12determine the lien priority of any bonds, including alternate
13bonds, which may be issued with respect to any enterprise
14revenues or revenue source.
15 In the event that alternate bonds shall have been issued
16and taxes, other than a designated revenue source, shall have
17been extended pursuant to the general obligation, full faith
18and credit promise supporting such alternate bonds, then the
19amount of such alternate bonds then outstanding shall be
20included in the computation of indebtedness of the governmental
21unit for purposes of all statutory provisions or limitations
22until such time as an audit of the governmental unit shall show
23that the alternate bonds have been paid from the enterprise
24revenues or revenue source, as applicable, pledged thereto for
25a complete fiscal year.
26 Alternate bonds may be issued to refund or advance refund

09700SB2170sam003- 9 -LRB097 09013 PJG 53947 a
1alternate bonds without meeting any of the conditions set forth
2in this Section, except that the term of the refunding bonds
3shall not be longer than the term of the refunded bonds and
4that the debt service payable in any year on the refunding
5bonds shall not exceed the debt service payable in such year on
6the refunded bonds.
7 Once issued, alternate bonds shall be and forever remain
8until paid or defeased the general obligation of the
9governmental unit, for the payment of which its full faith and
10credit are pledged, and shall be payable from the levy of taxes
11as is provided in this Act for general obligation bonds.
12 The changes made by this amendatory Act of 1990 do not
13affect the validity of bonds authorized before September 1,
141990.
15(Source: P.A. 95-675, eff. 10-11-07.)
16 Section 10. The Counties Code is amended by changing
17Section 5-1006.7 as follows:
18 (55 ILCS 5/5-1006.7)
19 Sec. 5-1006.7. School facility occupation taxes.
20 (a) In The county board of any county may impose a tax
21shall be imposed upon all persons engaged in the business of
22selling tangible personal property, other than personal
23property titled or registered with an agency of this State's
24government, at retail in the county on the gross receipts from

09700SB2170sam003- 10 -LRB097 09013 PJG 53947 a
1the sales made in the course of business to provide revenue to
2be used exclusively for school facility purposes if a
3proposition for the tax has been submitted to the electors of
4that county and approved by a majority of those voting on the
5question as provided in subsection (c). The tax under this
6Section shall may be imposed only in one-quarter percent
7increments and may not exceed 1%.
8 This additional tax may not be imposed on the sale of food
9for human consumption that is to be consumed off the premises
10where it is sold (other than alcoholic beverages, soft drinks,
11and food that has been prepared for immediate consumption) and
12prescription and non-prescription medicines, drugs, medical
13appliances and insulin, urine testing materials, syringes and
14needles used by diabetics. The Department of Revenue has full
15power to administer and enforce this subsection, to collect all
16taxes and penalties due under this subsection, to dispose of
17taxes and penalties so collected in the manner provided in this
18subsection, and to determine all rights to credit memoranda
19arising on account of the erroneous payment of a tax or penalty
20under this subsection. The Department shall deposit all taxes
21and penalties collected under this subsection into a special
22fund created for that purpose.
23 In the administration of and compliance with this
24subsection, the Department and persons who are subject to this
25subsection (i) have the same rights, remedies, privileges,
26immunities, powers, and duties, (ii) are subject to the same

09700SB2170sam003- 11 -LRB097 09013 PJG 53947 a
1conditions, restrictions, limitations, penalties, and
2definitions of terms, and (iii) shall employ the same modes of
3procedure as are set forth in Sections 1 through 1o, 2 through
42-70 (in respect to all provisions contained in those Sections
5other than the State rate of tax), 2a through 2h, 3 (except as
6to the disposition of taxes and penalties collected), 4, 5, 5a,
75b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8,
89, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
9and all provisions of the Uniform Penalty and Interest Act as
10if those provisions were set forth in this subsection.
11 The certificate of registration that is issued by the
12Department to a retailer under the Retailers' Occupation Tax
13Act permits the retailer to engage in a business that is
14taxable without registering separately with the Department
15under an ordinance or resolution under this subsection.
16 Persons subject to any tax imposed under the authority
17granted in this subsection may reimburse themselves for their
18seller's tax liability by separately stating that tax as an
19additional charge, which may be stated in combination, in a
20single amount, with State tax that sellers are required to
21collect under the Use Tax Act, pursuant to any bracketed
22schedules set forth by the Department.
23 (b) If a tax has been imposed under subsection (a), then a
24service occupation tax must also be imposed at the same rate
25upon all persons engaged, in the county, in the business of
26making sales of service, who, as an incident to making those

09700SB2170sam003- 12 -LRB097 09013 PJG 53947 a
1sales of service, transfer tangible personal property within
2the county as an incident to a sale of service.
3 This tax may not be imposed on sales of food for human
4consumption that is to be consumed off the premises where it is
5sold (other than alcoholic beverages, soft drinks, and food
6prepared for immediate consumption) and prescription and
7non-prescription medicines, drugs, medical appliances and
8insulin, urine testing materials, syringes, and needles used by
9diabetics.
10 The tax imposed under this subsection and all civil
11penalties that may be assessed as an incident thereof shall be
12collected and enforced by the Department and deposited into a
13special fund created for that purpose. The Department has full
14power to administer and enforce this subsection, to collect all
15taxes and penalties due under this subsection, to dispose of
16taxes and penalties so collected in the manner provided in this
17subsection, and to determine all rights to credit memoranda
18arising on account of the erroneous payment of a tax or penalty
19under this subsection.
20 In the administration of and compliance with this
21subsection, the Department and persons who are subject to this
22subsection shall (i) have the same rights, remedies,
23privileges, immunities, powers and duties, (ii) be subject to
24the same conditions, restrictions, limitations, penalties and
25definition of terms, and (iii) employ the same modes of
26procedure as are set forth in Sections 2 (except that that

09700SB2170sam003- 13 -LRB097 09013 PJG 53947 a
1reference to State in the definition of supplier maintaining a
2place of business in this State means the county), 2a through
32d, 3 through 3-50 (in respect to all provisions contained in
4those Sections other than the State rate of tax), 4 (except
5that the reference to the State shall be to the county), 5, 7,
68 (except that the jurisdiction to which the tax is a debt to
7the extent indicated in that Section 8 is the county), 9
8(except as to the disposition of taxes and penalties
9collected), 10, 11, 12 (except the reference therein to Section
102b of the Retailers' Occupation Tax Act), 13 (except that any
11reference to the State means the county), Section 15, 16, 17,
1218, 19, and 20 of the Service Occupation Tax Act and all
13provisions of the Uniform Penalty and Interest Act, as fully as
14if those provisions were set forth herein.
15 Persons subject to any tax imposed under the authority
16granted in this subsection may reimburse themselves for their
17serviceman's tax liability by separately stating the tax as an
18additional charge, which may be stated in combination, in a
19single amount, with State tax that servicemen are authorized to
20collect under the Service Use Tax Act, pursuant to any
21bracketed schedules set forth by the Department.
22 (c) The tax under this Section may not be imposed until, by
23ordinance or resolution of the county board, the question of
24imposing the tax has been submitted to the electors of the
25county at a regular election and approved by a majority of the
26electors voting on the question. For all regular elections held

09700SB2170sam003- 14 -LRB097 09013 PJG 53947 a
1prior to the effective date of this amendatory Act of the 97th
2General Assembly, upon Upon a resolution by the county board or
3a resolution by school district boards that represent at least
451% of the student enrollment within the county, the county
5board must certify the question to the proper election
6authority in accordance with the Election Code.
7 For all regular elections held prior to the effective date
8of this amendatory Act of the 97th General Assembly, the The
9election authority must submit the question in substantially
10the following form:
11 Shall (name of county) be authorized to impose a
12 retailers' occupation tax and a service occupation tax
13 (commonly referred to as a "sales tax") at a rate of
14 (insert rate) to be used exclusively for school facility
15 purposes?
16The election authority must record the votes as "Yes" or "No".
17 If a majority of the electors voting on the question vote
18in the affirmative, then the county may, thereafter, impose the
19tax.
20 For all regular elections held on or after the effective
21date of this amendatory Act of the 97th General Assembly, the
22regional superintendent of schools for the county must, upon
23receipt of a resolution or resolutions of school district
24boards that represent more than 50% of the student enrollment
25within the county, certify the question to the proper election
26authority for submission to the electors of the county at the

09700SB2170sam003- 15 -LRB097 09013 PJG 53947 a
1next regular election at which the question lawfully may be
2submitted to the electors, all in accordance with the Election
3Code.
4 For all regular elections held on or after the effective
5date of this amendatory Act of the 97th General Assembly, the
6election authority must submit the question in substantially
7the 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 school facility purposes?
12The election authority must record the votes as "Yes" or "No".
13 If a majority of the electors voting on the question vote
14in the affirmative, then the tax shall be imposed at the rate
15set forth in the question.
16 For the purposes of this subsection (c), "enrollment" means
17the head count of the students residing in the county on the
18last school day of September of each year, which must be
19reported on the Illinois State Board of Education Public School
20Fall Enrollment/Housing Report.
21 (d) The Department shall immediately pay over to the State
22Treasurer, ex officio, as trustee, all taxes and penalties
23collected under this Section to be deposited into the School
24Facility Occupation Tax Fund, which shall be an unappropriated
25trust fund held outside the State treasury.
26 On or before the 25th day of each calendar month, the

09700SB2170sam003- 16 -LRB097 09013 PJG 53947 a
1Department shall prepare and certify to the Comptroller the
2disbursement of stated sums of money to the regional
3superintendents of schools in counties from which retailers or
4servicemen have paid taxes or penalties to the Department
5during the second preceding calendar month. The amount to be
6paid to each regional superintendent of schools and disbursed
7to him or her in accordance with 3-14.31 of the School Code, is
8equal to the amount (not including credit memoranda) collected
9from the county under this Section during the second preceding
10calendar month by the Department, (i) less 2% of that amount,
11which shall be deposited into the Tax Compliance and
12Administration Fund and shall be used by the Department,
13subject to appropriation, to cover the costs of the Department
14in administering and enforcing the provisions of this Section,
15on behalf of the county, (ii) plus an amount that the
16Department determines is necessary to offset any amounts that
17were erroneously paid to a different taxing body; (iii) less an
18amount equal to the amount of refunds made during the second
19preceding calendar month by the Department on behalf of the
20county; and (iv) less any amount that the Department determines
21is necessary to offset any amounts that were payable to a
22different taxing body but were erroneously paid to the county.
23When certifying the amount of a monthly disbursement to a
24regional superintendent of schools under this Section, the
25Department shall increase or decrease the amounts by an amount
26necessary to offset any miscalculation of previous

09700SB2170sam003- 17 -LRB097 09013 PJG 53947 a
1disbursements within the previous 6 months from the time a
2miscalculation is discovered.
3 Within 10 days after receipt by the Comptroller from the
4Department of the disbursement certification to the regional
5superintendents of the schools provided for in this Section,
6the Comptroller shall cause the orders to be drawn for the
7respective amounts in accordance with directions contained in
8the certification.
9 If the Department determines that a refund should be made
10under this Section to a claimant instead of issuing a credit
11memorandum, then the Department shall notify the Comptroller,
12who shall cause the order to be drawn for the amount specified
13and to the person named in the notification from the
14Department. The refund shall be paid by the Treasurer out of
15the School Facility Occupation Tax Fund.
16 (e) For the purposes of determining the local governmental
17unit whose tax is applicable, a retail sale by a producer of
18coal or another mineral mined in Illinois is a sale at retail
19at the place where the coal or other mineral mined in Illinois
20is extracted from the earth. This subsection does not apply to
21coal or another mineral when it is delivered or shipped by the
22seller to the purchaser at a point outside Illinois so that the
23sale is exempt under the United States Constitution as a sale
24in interstate or foreign commerce.
25 (f) Nothing in this Section may be construed to authorize a
26county board to impose a tax to be imposed upon the privilege

09700SB2170sam003- 18 -LRB097 09013 PJG 53947 a
1of engaging in any business that under the Constitution of the
2United States may not be made the subject of taxation by this
3State.
4 (g) If a county board imposes a tax under this Section
5pursuant to a referendum held before the effective date of this
6amendatory Act of the 97th General Assembly at a rate below the
7rate set forth in the question approved by a majority of
8electors of that county voting on the question as provided in
9subsection (c), then the county board may, by ordinance,
10increase the rate of the tax up to the rate set forth in the
11question approved by a majority of electors of that county
12voting on the question as provided in subsection (c). If a
13county board imposes a tax under this Section pursuant to a
14referendum held before the effective date of this amendatory
15Act of the 97th General Assembly, then the board may, by
16ordinance, discontinue or reduce the rate of the tax. If a tax
17is imposed under this Section pursuant to a referendum held on
18or after the effective date of this amendatory Act of the 97th
19General Assembly, then the county board may reduce or
20discontinue the tax, but only in accordance with subsection
21(h-5) of this Section. If, however, a school board issues bonds
22that are secured backed by the proceeds of the tax under this
23Section, then the county board may not reduce the tax rate or
24discontinue the tax if that rate reduction or discontinuance
25would adversely affect inhibit the school board's ability to
26pay the principal and interest on those bonds as they become

09700SB2170sam003- 19 -LRB097 09013 PJG 53947 a
1due or necessitate the extension of additional property taxes
2to pay the principal and interest on those bonds. If the county
3board reduces the tax rate or discontinues the tax, then a
4referendum must be held in accordance with subsection (c) of
5this Section in order to increase the rate of the tax or to
6reimpose the discontinued tax.
7 The results of any election that imposes, reduces, or
8discontinues authorizes a proposition to impose a tax under
9this Section must be certified by the election authority, and
10or to change the rate of the tax along with an ordinance
11imposing the tax, or any ordinance that increases or lowers the
12rate or discontinues the tax, must be certified by the county
13clerk and, in each case, filed with the Illinois Department of
14Revenue either (i) on or before the first day of April,
15whereupon the Department shall proceed to administer and
16enforce the tax or change in the rate as of the first day of
17July next following the filing; or (ii) on or before the first
18day of October, whereupon the Department shall proceed to
19administer and enforce the tax or change in the rate as of the
20first day of January next following the filing.
21 (h) For purposes of this Section, "school facility
22purposes" means (i) the acquisition, development,
23construction, reconstruction, rehabilitation, improvement,
24financing, architectural planning, and installation of capital
25facilities consisting of buildings, structures, and durable
26equipment and for the acquisition and improvement of real

09700SB2170sam003- 20 -LRB097 09013 PJG 53947 a
1property and interest in real property required, or expected to
2be required, in connection with the capital facilities and (ii)
3the payment of bonds or other obligations heretofore or
4hereafter issued, including bonds or other obligations
5heretofore or hereafter issued to refund or to continue to
6refund bonds or other obligations issued, for school facility
7purposes, provided that the taxes levied to pay those bonds are
8abated by the amount of the taxes imposed under this Section
9that are used to pay those bonds. "School-facility purposes"
10also includes fire prevention, safety, energy conservation,
11disabled accessibility, school security, and specified repair
12purposes set forth under Section 17-2.11 of the School Code.
13 (h-5) A county board in a county where a tax has been
14imposed under this Section pursuant to a referendum held on or
15after the effective date of this amendatory Act of the 97th
16General Assembly may, by ordinance or resolution, submit to the
17voters of the county the question of reducing or discontinuing
18the tax. In the ordinance or resolution, the county board shall
19certify the question to the proper election authority in
20accordance with the Election Code. The election authority must
21submit the question in substantially the following form:
22 Shall the school facility retailers' occupation tax
23 and service occupation tax (commonly referred to as the
24 "school facility sales tax") currently imposed in (name of
25 county) at a rate of (insert rate) be (reduced to (insert
26 rate))(discontinued)?

09700SB2170sam003- 21 -LRB097 09013 PJG 53947 a
1If a majority of the electors voting on the question vote in
2the affirmative, then, subject to the provisions of subsection
3(g) of this Section, the tax shall be reduced or discontinued
4as set forth in the question.
5 (i) This Section does not apply to Cook County.
6 (j) This Section may be cited as the County School Facility
7Occupation Tax Law.
8(Source: P.A. 95-675, eff. 10-11-07.)
9 Section 15. The School Code is amended by changing Section
1010-22.36 as follows:
11 (105 ILCS 5/10-22.36) (from Ch. 122, par. 10-22.36)
12 Sec. 10-22.36. Buildings for school purposes. To build or
13purchase a building for school classroom or instructional
14purposes upon the approval of a majority of the voters upon the
15proposition at a referendum held for such purpose or in
16accordance with Section 17-2.11, 19-3.5, or 19-3.10. The board
17may initiate such referendum by resolution. The board shall
18certify the resolution and proposition to the proper election
19authority for submission in accordance with the general
20election law.
21 The questions of building one or more new buildings for
22school purposes or office facilities, and issuing bonds for the
23purpose of borrowing money to purchase one or more buildings or
24sites for such buildings or office sites, to build one or more

09700SB2170sam003- 22 -LRB097 09013 PJG 53947 a
1new buildings for school purposes or office facilities or to
2make additions and improvements to existing school buildings,
3may be combined into one or more propositions on the ballot.
4 Before erecting, or purchasing or remodeling such a
5building the board shall submit the plans and specifications
6respecting heating, ventilating, lighting, seating, water
7supply, toilets and safety against fire to the regional
8superintendent of schools having supervision and control over
9the district, for approval in accordance with Section 2-3.12.
10 Notwithstanding any of the foregoing, no referendum shall
11be required if the purchase, construction, or building of any
12such building is completed (1) occurs while the building is
13being leased by the school district or (2) is paid with with
14the expenditure of (A) funds derived from the sale or
15disposition of other buildings, land, or structures of the
16school district or (B) funds received (i) as a grant under the
17School Construction Law, or (ii) as gifts or donations,
18provided that no funds to purchase, construct, or build
19complete such building, other than lease payments, are derived
20from the district's bonded indebtedness or the tax levy of the
21district, or (iii) from the County School Facility Occupation
22Tax Law under Section 5-1006.7 of the Counties Code.
23 Notwithstanding any of the foregoing, no referendum shall
24be required if the purchase, construction, or building of any
25such building is paid with funds received from the County
26School Facility Occupation Tax Law under Section 5-1006.7 of

09700SB2170sam003- 23 -LRB097 09013 PJG 53947 a
1the Counties Code or from the proceeds of bonds or other debt
2obligations secured by revenues obtained from that Law.
3(Source: P.A. 95-675, eff. 10-11-07; 96-517, eff. 8-14-09.)
4 Section 99. Effective date. This Act takes effect upon
5becoming law.".
feedback