Bill Text: IL SB2639 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Flood Prevention District Act. Provides that 1% (instead of 2%) of the proceeds collected from flood prevention retailers' and service occupation taxes shall be deposited into the Tax Compliance and Administration Fund. Effective July 1, 2014.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2015-01-13 - Session Sine Die [SB2639 Detail]

Download: Illinois-2013-SB2639-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 SB2639 Introduced 1/21/2014, by Sen. William R. Haine SYNOPSIS AS INTRODUCED:
70 ILCS 750/25
Amends the Flood Prevention District Act. Provides that 1% (instead of 2%) of the proceeds collected from flood prevention retailers' and service occupation taxes shall be deposited into the Tax Compliance and Administration Fund. Effective July 1, 2014.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Flood Prevention District Act is amended by
changing Section 25 as follows:
(70 ILCS 750/25)
Sec. 25. Flood prevention retailers' and service
occupation taxes.
(a) If the Board of Commissioners of a flood prevention
district determines that an emergency situation exists
regarding levee repair or flood prevention, and upon an
ordinance confirming the determination adopted by the
affirmative vote of a majority of the members of the county
board of the county in which the district is situated, the
county may impose a flood prevention retailers' occupation tax
upon all persons engaged in the business of selling tangible
personal property at retail within the territory of the
district to provide revenue to pay the costs of providing
emergency levee repair and flood prevention and to secure the
payment of bonds, notes, and other evidences of indebtedness
issued under this Act for a period not to exceed 25 years or as
required to repay the bonds, notes, and other evidences of
indebtedness issued under this Act. The tax rate shall be 0.25%

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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
subsection, the Department and persons who are subject to this
subsection (i) have the same rights, remedies, privileges,
immunities, powers, and duties, (ii) are subject to the same
conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) shall employ the same modes of
procedure as are set forth in Sections 1 through 1o, 2 through
2-70 (in respect to all provisions contained in those Sections
other than the State rate of tax), 2a through 2h, 3 (except as
to the disposition of taxes and penalties collected), 4, 5, 5a,
5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10,
11, 11a, 12, and 13 of the Retailers' Occupation Tax Act and
all provisions of the Uniform Penalty and Interest Act as if
those provisions were set forth in this subsection.
Persons subject to any tax imposed under this Section may
reimburse themselves for their seller's tax liability
hereunder by separately stating the tax as an additional

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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.
If a tax is imposed under this subsection (a), a tax shall
also be imposed under subsection (b) of this Section.
(b) If a tax has been imposed under subsection (a), a flood
prevention service occupation tax shall also be imposed upon
all persons engaged within the territory of the district in the
business of making sales of service, who, as an incident to
making the sales of service, transfer tangible personal
property, either in the form of tangible personal property or
in the form of real estate as an incident to a sale of service
to provide revenue to pay the costs of providing emergency
levee repair and flood prevention and to secure the payment of
bonds, notes, and other evidences of indebtedness issued under
this Act for a period not to exceed 25 years or as required to
repay the bonds, notes, and other evidences of indebtedness.
The tax rate shall be 0.25% of the selling price of all
tangible personal property transferred.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce this
subsection; to collect all taxes and penalties due hereunder;
to dispose of taxes and penalties collected in the manner

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hereinafter provided; and to determine all rights to credit
memoranda arising on account of the erroneous payment of tax or
penalty hereunder.
In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection shall (i) have the same rights, remedies,
privileges, immunities, powers, and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) employ the same modes of
procedure as are set forth in Sections 2 (except that the
reference to State in the definition of supplier maintaining a
place of business in this State means the district), 2a through
2d, 3 through 3-50 (in respect to all provisions contained in
those Sections other than the State rate of tax), 4 (except
that the reference to the State shall be to the district), 5,
7, 8 (except that the jurisdiction to which the tax is a debt
to the extent indicated in that Section 8 is the district), 9
(except as to the disposition of taxes and penalties
collected), 10, 11, 12 (except the reference therein to Section
2b of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State means the district), Section 15, 16, 17,
18, 19, and 20 of the Service Occupation Tax Act and all
provisions of the Uniform Penalty and Interest Act, as fully as
if those provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their

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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.
(c) The taxes imposed in subsections (a) and (b) may not be
imposed on personal property titled or registered with an
agency of the State; 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); prescription and
non-prescription medicines, drugs, and medical appliances;
modifications to a motor vehicle for the purpose of rendering
it usable by a disabled person; or insulin, urine testing
materials, and syringes and needles used by diabetics.
(d) Nothing in this Section shall be construed to authorize
the district 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.
(e) The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act or a serviceman under the Service Occupation Tax Act
permits the retailer or serviceman to engage in a business that
is taxable without registering separately with the Department
under an ordinance or resolution under this Section.
(f) The Department shall immediately pay over to the State

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Treasurer, ex officio, as trustee, all taxes and penalties
collected under this Section to be deposited into the Flood
Prevention Occupation Tax Fund, which shall be an
unappropriated trust fund held outside the State treasury.
On or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the counties from which
retailers or servicemen have paid taxes or penalties to the
Department during the second preceding calendar month. The
amount to be paid to each county is equal to the amount (not
including credit memoranda) collected from the county under
this Section during the second preceding calendar month by the
Department, (i) less 1% 2% of that amount, which shall be
deposited into the Tax Compliance and Administration Fund and
shall be used by the Department in administering and enforcing
the provisions of this Section on behalf of the county, (ii)
plus an amount that the Department determines is necessary to
offset any amounts that were erroneously paid to a different
taxing body; (iii) less an amount equal to the amount of
refunds made during the second preceding calendar month by the
Department on behalf of the county; and (iv) less any amount
that the Department determines is necessary to offset any
amounts that were payable to a different taxing body but were
erroneously paid to the county. When certifying the amount of a
monthly disbursement to a county under this Section, the
Department shall increase or decrease the amounts by an amount

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necessary to offset any miscalculation of previous
disbursements within the previous 6 months from the time a
miscalculation is discovered.
Within 10 days after receipt by the Comptroller from the
Department of the disbursement certification to the counties
provided for in this Section, the Comptroller shall cause the
orders to be drawn for the respective amounts in accordance
with directions contained in the certification.
If the Department determines that a refund should be made
under this Section to a claimant instead of issuing a credit
memorandum, then the Department shall notify the 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 Treasurer out of
the Flood Prevention Occupation Tax Fund.
(g) If a county imposes a tax under this Section, then the
county board shall, by ordinance, discontinue the tax upon the
payment of all indebtedness of the flood prevention district.
The tax shall not be discontinued until all indebtedness of the
District has been paid.
(h) Any ordinance imposing the tax under this Section, or
any ordinance that discontinues the tax, must be certified by
the county clerk and filed with the Illinois Department of
Revenue either (i) on or before the first day of April,
whereupon the Department shall proceed to administer and
enforce the tax or change in the rate as of the first day of

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July next following the filing; or (ii) on or before the first
day of October, whereupon the Department shall proceed to
administer and enforce the tax or change in the rate as of the
first day of January next following the filing.
(j) County Flood Prevention Occupation Tax Fund. All
proceeds received by a county from a tax distribution under
this Section must be maintained in a special fund known as the
[name of county] flood prevention occupation tax fund. The
county shall, at the direction of the flood prevention
district, use moneys in the fund to pay the costs of providing
emergency levee repair and flood prevention and to pay bonds,
notes, and other evidences of indebtedness issued under this
Act.
(k) This Section may be cited as the Flood Prevention
Occupation Tax Law.
(Source: P.A. 96-939, eff. 6-24-10; 97-188, eff. 7-22-11.)
Section 99. Effective date. This Act takes effect July 1,
2014.