Bill Text: IL HB0216 | 2019-2020 | 101st General Assembly | Introduced


Bill Title: Amends the State Finance Act, the Counties Code, the Illinois Municipal Code, the Metro-East Park and Recreation District Act, the Local Mass Transit District Act, the Regional Transportation Authority Act, and the Water Commission Act of 1985. Eliminates certain transfers into the Tax Compliance and Administration Fund.

Spectrum: Bipartisan Bill

Status: (Introduced) 2019-02-07 - To Sales, Amusement & Other Taxes Subcommittee [HB0216 Detail]

Download: Illinois-2019-HB0216-Introduced.html


101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB0216

Introduced , by Rep. Anthony DeLuca

SYNOPSIS AS INTRODUCED:
30 ILCS 105/6z-20 from Ch. 127, par. 142z-20
55 ILCS 5/5-1006 from Ch. 34, par. 5-1006
55 ILCS 5/5-1006.5
55 ILCS 5/5-1007 from Ch. 34, par. 5-1007
65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1
65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3
65 ILCS 5/8-11-1.4 from Ch. 24, par. 8-11-1.4
65 ILCS 5/8-11-1.6
65 ILCS 5/8-11-1.7
65 ILCS 5/8-11-5 from Ch. 24, par. 8-11-5
70 ILCS 1605/30
70 ILCS 3610/5.01 from Ch. 111 2/3, par. 355.01
70 ILCS 3615/4.03 from Ch. 111 2/3, par. 704.03
70 ILCS 3720/4 from Ch. 111 2/3, par. 254

Amends the State Finance Act, the Counties Code, the Illinois Municipal Code, the Metro-East Park and Recreation District Act, the Local Mass Transit District Act, the Regional Transportation Authority Act, and the Water Commission Act of 1985. Eliminates certain transfers into the Tax Compliance and Administration Fund.
LRB101 03001 HLH 48009 b
FISCAL NOTE ACT MAY APPLY

A BILL FOR

HB0216LRB101 03001 HLH 48009 b
1 AN ACT concerning local government.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The State Finance Act is amended by changing
5Section 6z-20 as follows:
6 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
7 Sec. 6z-20. County and Mass Transit District Fund. Of the
8money received from the 6.25% general rate (and, beginning July
91, 2000 and through December 31, 2000, the 1.25% rate on motor
10fuel and gasohol, and beginning on August 6, 2010 through
11August 15, 2010, the 1.25% rate on sales tax holiday items) on
12sales subject to taxation under the Retailers' Occupation Tax
13Act and Service Occupation Tax Act and paid into the County and
14Mass Transit District Fund, distribution to the Regional
15Transportation Authority tax fund, created pursuant to Section
164.03 of the Regional Transportation Authority Act, for deposit
17therein shall be made based upon the retail sales occurring in
18a county having more than 3,000,000 inhabitants. The remainder
19shall be distributed to each county having 3,000,000 or fewer
20inhabitants based upon the retail sales occurring in each such
21county.
22 For the purpose of determining allocation to the local
23government unit, a retail sale by a producer of coal or other

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1mineral mined in Illinois is a sale at retail at the place
2where the coal or other mineral mined in Illinois is extracted
3from the earth. This paragraph does not apply to coal or other
4mineral when it is delivered or shipped by the seller to the
5purchaser at a point outside Illinois so that the sale is
6exempt under the United States Constitution as a sale in
7interstate or foreign commerce.
8 Of the money received from the 6.25% general use tax rate
9on tangible personal property which is purchased outside
10Illinois at retail from a retailer and which is titled or
11registered by any agency of this State's government and paid
12into the County and Mass Transit District Fund, the amount for
13which Illinois addresses for titling or registration purposes
14are given as being in each county having more than 3,000,000
15inhabitants shall be distributed into the Regional
16Transportation Authority tax fund, created pursuant to Section
174.03 of the Regional Transportation Authority Act. The
18remainder of the money paid from such sales shall be
19distributed to each county based on sales for which Illinois
20addresses for titling or registration purposes are given as
21being located in the county. Any money paid into the Regional
22Transportation Authority Occupation and Use Tax Replacement
23Fund from the County and Mass Transit District Fund prior to
24January 14, 1991, which has not been paid to the Authority
25prior to that date, shall be transferred to the Regional
26Transportation Authority tax fund.

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1 Whenever the Department determines that a refund of money
2paid into the County and Mass Transit District Fund should be
3made to a claimant instead of issuing a credit memorandum, the
4Department shall notify the State Comptroller, who shall cause
5the order to be drawn for the amount specified, and to the
6person named, in such notification from the Department. Such
7refund shall be paid by the State Treasurer out of the County
8and Mass Transit District Fund.
9 As soon as possible after the first day of each month,
10beginning January 1, 2011, upon certification of the Department
11of Revenue, the Comptroller shall order transferred, and the
12Treasurer shall transfer, to the STAR Bonds Revenue Fund the
13local sales tax increment, as defined in the Innovation
14Development and Economy Act, collected during the second
15preceding calendar month for sales within a STAR bond district
16and deposited into the County and Mass Transit District Fund,
17less 3% of that amount, which shall be transferred into the Tax
18Compliance and Administration Fund and shall be used by the
19Department, subject to appropriation, to cover the costs of the
20Department in administering the Innovation Development and
21Economy Act.
22 After the monthly transfer to the STAR Bonds Revenue Fund,
23on or before the 25th day of each calendar month, the
24Department shall prepare and certify to the Comptroller the
25disbursement of stated sums of money to the Regional
26Transportation Authority and to named counties, the counties to

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1be those entitled to distribution, as hereinabove provided, of
2taxes or penalties paid to the Department during the second
3preceding calendar month. The amount to be paid to the Regional
4Transportation Authority and each county having 3,000,000 or
5fewer inhabitants shall be the amount (not including credit
6memoranda) collected during the second preceding calendar
7month by the Department and paid into the County and Mass
8Transit District Fund, plus an amount the Department determines
9is necessary to offset any amounts which were erroneously paid
10to a different taxing body, and not including an amount equal
11to the amount of refunds made during the second preceding
12calendar month by the Department, and not including any amount
13which the Department determines is necessary to offset any
14amounts which were payable to a different taxing body but were
15erroneously paid to the Regional Transportation Authority or
16county, and not including any amounts that are transferred to
17the STAR Bonds Revenue Fund, less 1.5% of the amount to be paid
18to the Regional Transportation Authority, which shall be
19transferred into the Tax Compliance and Administration Fund.
20The Department, at the time of each monthly disbursement to the
21Regional Transportation Authority, shall prepare and certify
22to the State Comptroller the amount to be transferred into the
23Tax Compliance and Administration Fund under this Section.
24Within 10 days after receipt, by the Comptroller, of the
25disbursement certification to the Regional Transportation
26Authority and the , counties, and the Tax Compliance and

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1Administration Fund provided for in this Section to be given to
2the Comptroller by the Department, the Comptroller shall cause
3the orders to be drawn for the respective amounts in accordance
4with the directions contained in such certification.
5 When certifying the amount of a monthly disbursement to the
6Regional Transportation Authority or to a county under this
7Section, the Department shall increase or decrease that amount
8by an amount necessary to offset any misallocation of previous
9disbursements. The offset amount shall be the amount
10erroneously disbursed within the 6 months preceding the time a
11misallocation is discovered.
12 The provisions directing the distributions from the
13special fund in the State Treasury provided for in this Section
14and from the Regional Transportation Authority tax fund created
15by Section 4.03 of the Regional Transportation Authority Act
16shall constitute an irrevocable and continuing appropriation
17of all amounts as provided herein. The State Treasurer and
18State Comptroller are hereby authorized to make distributions
19as provided in this Section.
20 In construing any development, redevelopment, annexation,
21preannexation or other lawful agreement in effect prior to
22September 1, 1990, which describes or refers to receipts from a
23county or municipal retailers' occupation tax, use tax or
24service occupation tax which now cannot be imposed, such
25description or reference shall be deemed to include the
26replacement revenue for such abolished taxes, distributed from

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1the County and Mass Transit District Fund or Local Government
2Distributive Fund, as the case may be.
3(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
4 Section 10. The Counties Code is amended by changing
5Sections 5-1006, 5-1006.5, and 5-1007 as follows:
6 (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
7 Sec. 5-1006. Home Rule County Retailers' Occupation Tax
8Law. Any county that is a home rule unit may impose a tax upon
9all persons engaged in the business of selling tangible
10personal property, other than an item of tangible personal
11property titled or registered with an agency of this State's
12government, at retail in the county on the gross receipts from
13such sales made in the course of their business. If imposed,
14this tax shall only be imposed in 1/4% increments. On and after
15September 1, 1991, this additional tax may not be imposed on
16the sales of food for human consumption which is to be consumed
17off the premises where it is sold (other than alcoholic
18beverages, soft drinks and food which has been prepared for
19immediate consumption) and prescription and nonprescription
20medicines, drugs, medical appliances and insulin, urine
21testing materials, syringes and needles used by diabetics. The
22tax imposed by a home rule county pursuant to this Section and
23all civil penalties that may be assessed as an incident thereof
24shall be collected and enforced by the State Department of

HB0216- 7 -LRB101 03001 HLH 48009 b
1Revenue. The certificate of registration that is issued by the
2Department to a retailer under the Retailers' Occupation Tax
3Act shall permit the retailer to engage in a business that is
4taxable under any ordinance or resolution enacted pursuant to
5this Section without registering separately with the
6Department under such ordinance or resolution or under this
7Section. The Department shall have full power to administer and
8enforce this Section; to collect all taxes and penalties due
9hereunder; to dispose of taxes and penalties so collected in
10the manner hereinafter provided; and to determine all rights to
11credit memoranda arising on account of the erroneous payment of
12tax or penalty hereunder. In the administration of, and
13compliance with, this Section, the Department and persons who
14are subject to this Section shall have the same rights,
15remedies, privileges, immunities, powers and duties, and be
16subject to the same conditions, restrictions, limitations,
17penalties and definitions of terms, and employ the same modes
18of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
191e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
20provisions therein other than the State rate of tax), 4, 5, 5a,
215b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
227, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act
23and Section 3-7 of the Uniform Penalty and Interest Act, as
24fully as if those provisions were set forth herein.
25 No tax may be imposed by a home rule county pursuant to
26this Section unless the county also imposes a tax at the same

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1rate pursuant to Section 5-1007.
2 Persons subject to any tax imposed pursuant to the
3authority granted in this Section may reimburse themselves for
4their seller's tax liability hereunder by separately stating
5such tax as an additional charge, which charge may be stated in
6combination, in a single amount, with State tax which sellers
7are required to collect under the Use Tax Act, pursuant to such
8bracket schedules as the Department may prescribe.
9 Whenever the Department determines that a refund should be
10made under this Section to a claimant instead of issuing a
11credit memorandum, the Department shall notify the State
12Comptroller, who shall cause the order to be drawn for the
13amount specified and to the person named in the notification
14from the Department. The refund shall be paid by the State
15Treasurer out of the home rule county retailers' occupation tax
16fund.
17 The Department shall forthwith pay over to the State
18Treasurer, ex officio, as trustee, all taxes and penalties
19collected hereunder.
20 As soon as possible after the first day of each month,
21beginning January 1, 2011, upon certification of the Department
22of Revenue, the Comptroller shall order transferred, and the
23Treasurer shall transfer, to the STAR Bonds Revenue Fund the
24local sales tax increment, as defined in the Innovation
25Development and Economy Act, collected under this Section
26during the second preceding calendar month for sales within a

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1STAR bond district.
2 After the monthly transfer to the STAR Bonds Revenue Fund,
3on or before the 25th day of each calendar month, the
4Department shall prepare and certify to the Comptroller the
5disbursement of stated sums of money to named counties, the
6counties to be those from which retailers have paid taxes or
7penalties hereunder to the Department during the second
8preceding calendar month. The amount to be paid to each county
9shall be the amount (not including credit memoranda) collected
10hereunder during the second preceding calendar month by the
11Department plus an amount the Department determines is
12necessary to offset any amounts that were erroneously paid to a
13different taxing body, and not including an amount equal to the
14amount of refunds made during the second preceding calendar
15month by the Department on behalf of such county, and not
16including any amount which the Department determines is
17necessary to offset any amounts which were payable to a
18different taxing body but were erroneously paid to the county,
19and not including any amounts that are transferred to the STAR
20Bonds Revenue Fund, less 1.5% of the remainder, which the
21Department shall transfer into the Tax Compliance and
22Administration Fund. The Department, at the time of each
23monthly disbursement to the counties, shall prepare and certify
24to the State Comptroller the amount to be transferred into the
25Tax Compliance and Administration Fund under this Section.
26Within 10 days after receipt, by the Comptroller, of the

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1disbursement certification to the counties and the Tax
2Compliance and Administration Fund provided for in this Section
3to be given to the Comptroller by the Department, the
4Comptroller shall cause the orders to be drawn for the
5respective amounts in accordance with the directions contained
6in the certification.
7 In addition to the disbursement required by the preceding
8paragraph, an allocation shall be made in March of each year to
9each county that received more than $500,000 in disbursements
10under the preceding paragraph in the preceding calendar year.
11The allocation shall be in an amount equal to the average
12monthly distribution made to each such county under the
13preceding paragraph during the preceding calendar year
14(excluding the 2 months of highest receipts). The distribution
15made in March of each year subsequent to the year in which an
16allocation was made pursuant to this paragraph and the
17preceding paragraph shall be reduced by the amount allocated
18and disbursed under this paragraph in the preceding calendar
19year. The Department shall prepare and certify to the
20Comptroller for disbursement the allocations made in
21accordance with this paragraph.
22 For the purpose of determining the local governmental unit
23whose tax is applicable, a retail sale by a producer of coal or
24other mineral mined in Illinois is a sale at retail at the
25place where the coal or other mineral mined in Illinois is
26extracted from the earth. This paragraph does not apply to coal

HB0216- 11 -LRB101 03001 HLH 48009 b
1or other mineral when it is delivered or shipped by the seller
2to the purchaser at a point outside Illinois so that the sale
3is exempt under the United States Constitution as a sale in
4interstate or foreign commerce.
5 Nothing in this Section shall be construed to authorize a
6county to impose a tax upon the privilege of engaging in any
7business which under the Constitution of the United States may
8not be made the subject of taxation by this State.
9 An ordinance or resolution imposing or discontinuing a tax
10hereunder or effecting a change in the rate thereof shall be
11adopted and a certified copy thereof filed with the Department
12on or before the first day of June, whereupon the Department
13shall proceed to administer and enforce this Section as of the
14first day of September next following such adoption and filing.
15Beginning January 1, 1992, an ordinance or resolution imposing
16or discontinuing the tax hereunder or effecting a change in the
17rate thereof shall be adopted and a certified copy thereof
18filed with the Department on or before the first day of July,
19whereupon the Department shall proceed to administer and
20enforce this Section as of the first day of October next
21following such adoption and filing. Beginning January 1, 1993,
22an ordinance or resolution imposing or discontinuing the tax
23hereunder or effecting a change in the rate thereof shall be
24adopted and a certified copy thereof filed with the Department
25on or before the first day of October, whereupon the Department
26shall proceed to administer and enforce this Section as of the

HB0216- 12 -LRB101 03001 HLH 48009 b
1first day of January next following such adoption and filing.
2Beginning April 1, 1998, an ordinance or resolution imposing or
3discontinuing the tax hereunder or effecting a change in the
4rate thereof shall either (i) be adopted and a certified copy
5thereof filed with the Department on or before the first day of
6April, whereupon the Department shall proceed to administer and
7enforce this Section as of the first day of July next following
8the adoption and filing; or (ii) be adopted and a certified
9copy thereof filed with the Department on or before the first
10day of October, whereupon the Department shall proceed to
11administer and enforce this Section as of the first day of
12January next following the adoption and filing.
13 When certifying the amount of a monthly disbursement to a
14county under this Section, the Department shall increase or
15decrease such amount by an amount necessary to offset any
16misallocation of previous disbursements. The offset amount
17shall be the amount erroneously disbursed within the previous 6
18months from the time a misallocation is discovered.
19 This Section shall be known and may be cited as the Home
20Rule County Retailers' Occupation Tax Law.
21(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
22100-587, eff. 6-4-18.)
23 (55 ILCS 5/5-1006.5)
24 Sec. 5-1006.5. Special County Retailers' Occupation Tax
25For Public Safety, Public Facilities, or Transportation.

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1 (a) The county board of any county may impose a tax upon
2all persons engaged in the business of selling tangible
3personal property, other than personal property titled or
4registered with an agency of this State's government, at retail
5in the county on the gross receipts from the sales made in the
6course of business to provide revenue to be used exclusively
7for public safety, public facility, or transportation purposes
8in that county, if a proposition for the tax has been submitted
9to the electors of that county and approved by a majority of
10those voting on the question. If imposed, this tax shall be
11imposed only in one-quarter percent increments. By resolution,
12the county board may order the proposition to be submitted at
13any election. If the tax is imposed for transportation purposes
14for expenditures for public highways or as authorized under the
15Illinois Highway Code, the county board must publish notice of
16the existence of its long-range highway transportation plan as
17required or described in Section 5-301 of the Illinois Highway
18Code and must make the plan publicly available prior to
19approval of the ordinance or resolution imposing the tax. If
20the tax is imposed for transportation purposes for expenditures
21for passenger rail transportation, the county board must
22publish notice of the existence of its long-range passenger
23rail transportation plan and must make the plan publicly
24available prior to approval of the ordinance or resolution
25imposing the tax.
26 If a tax is imposed for public facilities purposes, then

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1the name of the project may be included in the proposition at
2the discretion of the county board as determined in the
3enabling resolution. For example, the "XXX Nursing Home" or the
4"YYY Museum".
5 The county clerk shall certify the question to the proper
6election authority, who shall submit the proposition at an
7election in accordance with the general election law.
8 (1) The proposition for public safety purposes shall be
9 in substantially the following form:
10 "To pay for public safety purposes, shall (name of
11 county) be authorized to impose an increase on its share of
12 local sales taxes by (insert rate)?"
13 As additional information on the ballot below the
14 question shall appear the following:
15 "This would mean that a consumer would pay an
16 additional (insert amount) in sales tax for every $100 of
17 tangible personal property bought at retail."
18 The county board may also opt to establish a sunset
19 provision at which time the additional sales tax would
20 cease being collected, if not terminated earlier by a vote
21 of the county board. If the county board votes to include a
22 sunset provision, the proposition for public safety
23 purposes shall be in substantially the following form:
24 "To pay for public safety purposes, shall (name of
25 county) be authorized to impose an increase on its share of
26 local sales taxes by (insert rate) for a period not to

HB0216- 15 -LRB101 03001 HLH 48009 b
1 exceed (insert number of years)?"
2 As additional information on the ballot below the
3 question shall appear the following:
4 "This would mean that a consumer would pay an
5 additional (insert amount) in sales tax for every $100 of
6 tangible personal property bought at retail. If imposed,
7 the additional tax would cease being collected at the end
8 of (insert number of years), if not terminated earlier by a
9 vote of the county board."
10 For the purposes of the paragraph, "public safety
11 purposes" means crime prevention, detention, fire
12 fighting, police, medical, ambulance, or other emergency
13 services.
14 Votes shall be recorded as "Yes" or "No".
15 Beginning on the January 1 or July 1, whichever is
16 first, that occurs not less than 30 days after May 31, 2015
17 (the effective date of Public Act 99-4), Adams County may
18 impose a public safety retailers' occupation tax and
19 service occupation tax at the rate of 0.25%, as provided in
20 the referendum approved by the voters on April 7, 2015,
21 notwithstanding the omission of the additional information
22 that is otherwise required to be printed on the ballot
23 below the question pursuant to this item (1).
24 (2) The proposition for transportation purposes shall
25 be in substantially the following form:
26 "To pay for improvements to roads and other

HB0216- 16 -LRB101 03001 HLH 48009 b
1 transportation purposes, shall (name of county) be
2 authorized to impose an increase on its share of local
3 sales taxes by (insert rate)?"
4 As additional information on the ballot below the
5 question shall appear the following:
6 "This would mean that a consumer would pay an
7 additional (insert amount) in sales tax for every $100 of
8 tangible personal property bought at retail."
9 The county board may also opt to establish a sunset
10 provision at which time the additional sales tax would
11 cease being collected, if not terminated earlier by a vote
12 of the county board. If the county board votes to include a
13 sunset provision, the proposition for transportation
14 purposes shall be in substantially the following form:
15 "To pay for road improvements and other transportation
16 purposes, shall (name of county) be authorized to impose an
17 increase on its share of local sales taxes by (insert rate)
18 for a period not to exceed (insert number of years)?"
19 As additional information on the ballot below the
20 question shall appear the following:
21 "This would mean that a consumer would pay an
22 additional (insert amount) in sales tax for every $100 of
23 tangible personal property bought at retail. If imposed,
24 the additional tax would cease being collected at the end
25 of (insert number of years), if not terminated earlier by a
26 vote of the county board."

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1 For the purposes of this paragraph, transportation
2 purposes means construction, maintenance, operation, and
3 improvement of public highways, any other purpose for which
4 a county may expend funds under the Illinois Highway Code,
5 and passenger rail transportation.
6 The votes shall be recorded as "Yes" or "No".
7 (3) The proposition for public facilities purposes
8 shall be in substantially the following form:
9 "To pay for public facilities purposes, shall (name of
10 county) be authorized to impose an increase on its share of
11 local sales taxes by (insert rate)?"
12 As additional information on the ballot below the
13 question shall appear the following:
14 "This would mean that a consumer would pay an
15 additional (insert amount) in sales tax for every $100 of
16 tangible personal property bought at retail."
17 The county board may also opt to establish a sunset
18 provision at which time the additional sales tax would
19 cease being collected, if not terminated earlier by a vote
20 of the county board. If the county board votes to include a
21 sunset provision, the proposition for public facilities
22 purposes shall be in substantially the following form:
23 "To pay for public facilities purposes, shall (name of
24 county) be authorized to impose an increase on its share of
25 local sales taxes by (insert rate) for a period not to
26 exceed (insert number of years)?"

HB0216- 18 -LRB101 03001 HLH 48009 b
1 As additional information on the ballot below the
2 question shall appear the following:
3 "This would mean that a consumer would pay an
4 additional (insert amount) in sales tax for every $100 of
5 tangible personal property bought at retail. If imposed,
6 the additional tax would cease being collected at the end
7 of (insert number of years), if not terminated earlier by a
8 vote of the county board."
9 For purposes of this Section, "public facilities
10 purposes" means the acquisition, development,
11 construction, reconstruction, rehabilitation, improvement,
12 financing, architectural planning, and installation of
13 capital facilities consisting of buildings, structures,
14 and durable equipment and for the acquisition and
15 improvement of real property and interest in real property
16 required, or expected to be required, in connection with
17 the public facilities, for use by the county for the
18 furnishing of governmental services to its citizens,
19 including but not limited to museums and nursing homes.
20 The votes shall be recorded as "Yes" or "No".
21 If a majority of the electors voting on the proposition
22vote in favor of it, the county may impose the tax. A county
23may not submit more than one proposition authorized by this
24Section to the electors at any one time.
25 This additional tax may not be imposed on the sales of food
26for human consumption that is to be consumed off the premises

HB0216- 19 -LRB101 03001 HLH 48009 b
1where it is sold (other than alcoholic beverages, soft drinks,
2and food which has been prepared for immediate consumption) and
3prescription and non-prescription medicines, drugs, medical
4appliances and insulin, urine testing materials, syringes, and
5needles used by diabetics. The tax imposed by a county under
6this Section and all civil penalties that may be assessed as an
7incident of the tax shall be collected and enforced by the
8Illinois Department of Revenue and deposited into a special
9fund created for that purpose. The certificate of registration
10that is issued by the Department to a retailer under the
11Retailers' Occupation Tax Act shall permit the retailer to
12engage in a business that is taxable without registering
13separately with the Department under an ordinance or resolution
14under this Section. The Department has full power to administer
15and enforce this Section, to collect all taxes and penalties
16due under this Section, to dispose of taxes and penalties so
17collected in the manner provided in this Section, and to
18determine all rights to credit memoranda arising on account of
19the erroneous payment of a tax or penalty under this Section.
20In the administration of and compliance with this Section, the
21Department and persons who are subject to this Section shall
22(i) have the same rights, remedies, privileges, immunities,
23powers, and duties, (ii) be subject to the same conditions,
24restrictions, limitations, penalties, and definitions of
25terms, and (iii) employ the same modes of procedure as are
26prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,

HB0216- 20 -LRB101 03001 HLH 48009 b
11n, 2 through 2-70 (in respect to all provisions contained in
2those Sections other than the State rate of tax), 2a, 2b, 2c, 3
3(except provisions relating to transaction returns and quarter
4monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
55j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13
6of the Retailers' Occupation Tax Act and Section 3-7 of the
7Uniform Penalty and Interest Act as if those provisions were
8set forth in this Section.
9 Persons subject to any tax imposed under the authority
10granted in this Section may reimburse themselves for their
11sellers' tax liability by separately stating the tax as an
12additional charge, which charge may be stated in combination,
13in a single amount, with State tax which sellers are required
14to collect under the Use Tax Act, pursuant to such bracketed
15schedules as the Department may prescribe.
16 Whenever the Department determines that a refund should be
17made under this Section to a claimant instead of issuing a
18credit memorandum, the Department shall notify the State
19Comptroller, who shall cause the order to be drawn for the
20amount specified and to the person named in the notification
21from the Department. The refund shall be paid by the State
22Treasurer out of the County Public Safety or Transportation
23Retailers' Occupation Tax Fund.
24 (b) If a tax has been imposed under subsection (a), a
25service occupation tax shall also be imposed at the same rate
26upon all persons engaged, in the county, in the business of

HB0216- 21 -LRB101 03001 HLH 48009 b
1making sales of service, who, as an incident to making those
2sales of service, transfer tangible personal property within
3the county as an incident to a sale of service. This tax may
4not be imposed on sales of food for human consumption that is
5to be consumed off the premises where it is sold (other than
6alcoholic beverages, soft drinks, and food prepared for
7immediate consumption) and prescription and non-prescription
8medicines, drugs, medical appliances and insulin, urine
9testing materials, syringes, and needles used by diabetics. The
10tax imposed under this subsection and all civil penalties that
11may be assessed as an incident thereof shall be collected and
12enforced by the Department of Revenue. The Department has full
13power to administer and enforce this subsection; to collect all
14taxes and penalties due hereunder; to dispose of taxes and
15penalties so collected in the manner hereinafter provided; and
16to determine all rights to credit memoranda arising on account
17of the erroneous payment of tax or penalty hereunder. In the
18administration of, and compliance with this subsection, the
19Department and persons who are subject to this paragraph shall
20(i) have the same rights, remedies, privileges, immunities,
21powers, and duties, (ii) be subject to the same conditions,
22restrictions, limitations, penalties, exclusions, exemptions,
23and definitions of terms, and (iii) employ the same modes of
24procedure as are prescribed in Sections 2 (except that the
25reference to State in the definition of supplier maintaining a
26place of business in this State shall mean the county), 2a, 2b,

HB0216- 22 -LRB101 03001 HLH 48009 b
12c, 3 through 3-50 (in respect to all provisions therein other
2than the State rate of tax), 4 (except that the reference to
3the State shall be to the county), 5, 7, 8 (except that the
4jurisdiction to which the tax shall be a debt to the extent
5indicated in that Section 8 shall be the county), 9 (except as
6to the disposition of taxes and penalties collected), 10, 11,
712 (except the reference therein to Section 2b of the
8Retailers' Occupation Tax Act), 13 (except that any reference
9to the State shall mean the county), Section 15, 16, 17, 18, 19
10and 20 of the Service Occupation Tax Act and Section 3-7 of the
11Uniform Penalty and Interest Act, as fully as if those
12provisions were set forth herein.
13 Persons subject to any tax imposed under the authority
14granted in this subsection may reimburse themselves for their
15serviceman's tax liability by separately stating the tax as an
16additional charge, which charge may be stated in combination,
17in a single amount, with State tax that servicemen are
18authorized to collect under the Service Use Tax Act, in
19accordance with such bracket schedules as the Department may
20prescribe.
21 Whenever the Department determines that a refund should be
22made under this subsection to a claimant instead of issuing a
23credit memorandum, the Department shall notify the State
24Comptroller, who shall cause the warrant to be drawn for the
25amount specified, and to the person named, in the notification
26from the Department. The refund shall be paid by the State

HB0216- 23 -LRB101 03001 HLH 48009 b
1Treasurer out of the County Public Safety or Transportation
2Retailers' Occupation Fund.
3 Nothing in this subsection shall be construed to authorize
4the county to impose a tax upon the privilege of engaging in
5any business which under the Constitution of the United States
6may not be made the subject of taxation by the State.
7 (c) The Department shall immediately pay over to the State
8Treasurer, ex officio, as trustee, all taxes and penalties
9collected under this Section to be deposited into the County
10Public Safety or Transportation Retailers' Occupation Tax
11Fund, which shall be an unappropriated trust fund held outside
12of the State treasury.
13 As soon as possible after the first day of each month,
14beginning January 1, 2011, upon certification of the Department
15of Revenue, the Comptroller shall order transferred, and the
16Treasurer shall transfer, to the STAR Bonds Revenue Fund the
17local sales tax increment, as defined in the Innovation
18Development and Economy Act, collected under this Section
19during the second preceding calendar month for sales within a
20STAR bond district.
21 After the monthly transfer to the STAR Bonds Revenue Fund,
22on or before the 25th day of each calendar month, the
23Department shall prepare and certify to the Comptroller the
24disbursement of stated sums of money to the counties from which
25retailers have paid taxes or penalties to the Department during
26the second preceding calendar month. The amount to be paid to

HB0216- 24 -LRB101 03001 HLH 48009 b
1each county, and deposited by the county into its special fund
2created for the purposes of this Section, shall be the amount
3(not including credit memoranda) collected under this Section
4during the second preceding calendar month by the Department
5plus an amount the Department determines is necessary to offset
6any amounts that were erroneously paid to a different taxing
7body, and not including (i) an amount equal to the amount of
8refunds made during the second preceding calendar month by the
9Department on behalf of the county, (ii) any amount that the
10Department determines is necessary to offset any amounts that
11were payable to a different taxing body but were erroneously
12paid to the county, and (iii) any amounts that are transferred
13to the STAR Bonds Revenue Fund, and (iv) 1.5% of the remainder,
14which shall be transferred into the Tax Compliance and
15Administration Fund. The Department, at the time of each
16monthly disbursement to the counties, shall prepare and certify
17to the State Comptroller the amount to be transferred into the
18Tax Compliance and Administration Fund under this subsection.
19Within 10 days after receipt by the Comptroller of the
20disbursement certification to the counties and the Tax
21Compliance and Administration Fund provided for in this Section
22to be given to the Comptroller by the Department, the
23Comptroller shall cause the orders to be drawn for the
24respective amounts in accordance with directions contained in
25the certification.
26 In addition to the disbursement required by the preceding

HB0216- 25 -LRB101 03001 HLH 48009 b
1paragraph, an allocation shall be made in March of each year to
2each county that received more than $500,000 in disbursements
3under the preceding paragraph in the preceding calendar year.
4The allocation shall be in an amount equal to the average
5monthly distribution made to each such county under the
6preceding paragraph during the preceding calendar year
7(excluding the 2 months of highest receipts). The distribution
8made in March of each year subsequent to the year in which an
9allocation was made pursuant to this paragraph and the
10preceding paragraph shall be reduced by the amount allocated
11and disbursed under this paragraph in the preceding calendar
12year. The Department shall prepare and certify to the
13Comptroller for disbursement the allocations made in
14accordance with this paragraph.
15 A county may direct, by ordinance, that all or a portion of
16the taxes and penalties collected under the Special County
17Retailers' Occupation Tax For Public Safety or Transportation
18be deposited into the Transportation Development Partnership
19Trust Fund.
20 (d) For the purpose of determining the local governmental
21unit whose tax is applicable, a retail sale by a producer of
22coal or another mineral mined in Illinois is a sale at retail
23at the place where the coal or other mineral mined in Illinois
24is extracted from the earth. This paragraph does not apply to
25coal or another mineral when it is delivered or shipped by the
26seller to the purchaser at a point outside Illinois so that the

HB0216- 26 -LRB101 03001 HLH 48009 b
1sale is exempt under the United States Constitution as a sale
2in interstate or foreign commerce.
3 (e) Nothing in this Section shall be construed to authorize
4a county to impose a tax upon the privilege of engaging in any
5business that under the Constitution of the United States may
6not be made the subject of taxation by this State.
7 (e-5) If a county imposes a tax under this Section, the
8county board may, by ordinance, discontinue or lower the rate
9of the tax. If the county board lowers the tax rate or
10discontinues the tax, a referendum must be held in accordance
11with subsection (a) of this Section in order to increase the
12rate of the tax or to reimpose the discontinued tax.
13 (f) Beginning April 1, 1998 and through December 31, 2013,
14the results of any election authorizing a proposition to impose
15a tax under this Section or effecting a change in the rate of
16tax, or any ordinance lowering the rate or discontinuing the
17tax, shall be certified by the county clerk and filed with the
18Illinois Department of Revenue either (i) on or before the
19first day of April, whereupon the Department shall proceed to
20administer and enforce the tax as of the first day of July next
21following the filing; or (ii) on or before the first day of
22October, whereupon the Department shall proceed to administer
23and enforce the tax as of the first day of January next
24following the filing.
25 Beginning January 1, 2014, the results of any election
26authorizing a proposition to impose a tax under this Section or

HB0216- 27 -LRB101 03001 HLH 48009 b
1effecting an increase in the rate of tax, along with the
2ordinance adopted to impose the tax or increase the rate of the
3tax, or any ordinance adopted to lower the rate or discontinue
4the tax, shall be certified by the county clerk and filed with
5the Illinois Department of Revenue either (i) on or before the
6first day of May, whereupon the Department shall proceed to
7administer and enforce the tax as of the first day of July next
8following the adoption and filing; or (ii) on or before the
9first day of October, whereupon the Department shall proceed to
10administer and enforce the tax as of the first day of January
11next following the adoption and filing.
12 (g) When certifying the amount of a monthly disbursement to
13a county under this Section, the Department shall increase or
14decrease the amounts by an amount necessary to offset any
15miscalculation of previous disbursements. The offset amount
16shall be the amount erroneously disbursed within the previous 6
17months from the time a miscalculation is discovered.
18 (h) This Section may be cited as the "Special County
19Occupation Tax For Public Safety, Public Facilities, or
20Transportation Law".
21 (i) For purposes of this Section, "public safety" includes,
22but is not limited to, crime prevention, detention, fire
23fighting, police, medical, ambulance, or other emergency
24services. The county may share tax proceeds received under this
25Section for public safety purposes, including proceeds
26received before August 4, 2009 (the effective date of Public

HB0216- 28 -LRB101 03001 HLH 48009 b
1Act 96-124), with any fire protection district located in the
2county. For the purposes of this Section, "transportation"
3includes, but is not limited to, the construction, maintenance,
4operation, and improvement of public highways, any other
5purpose for which a county may expend funds under the Illinois
6Highway Code, and passenger rail transportation. For the
7purposes of this Section, "public facilities purposes"
8includes, but is not limited to, the acquisition, development,
9construction, reconstruction, rehabilitation, improvement,
10financing, architectural planning, and installation of capital
11facilities consisting of buildings, structures, and durable
12equipment and for the acquisition and improvement of real
13property and interest in real property required, or expected to
14be required, in connection with the public facilities, for use
15by the county for the furnishing of governmental services to
16its citizens, including but not limited to museums and nursing
17homes.
18 (j) The Department may promulgate rules to implement Public
19Act 95-1002 only to the extent necessary to apply the existing
20rules for the Special County Retailers' Occupation Tax for
21Public Safety to this new purpose for public facilities.
22(Source: P.A. 99-4, eff. 5-31-15; 99-217, eff. 7-31-15; 99-642,
23eff. 7-28-16; 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
24 (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
25 Sec. 5-1007. Home Rule County Service Occupation Tax Law.

HB0216- 29 -LRB101 03001 HLH 48009 b
1The corporate authorities of a home rule county may impose a
2tax upon all persons engaged, in such county, in the business
3of making sales of service at the same rate of tax imposed
4pursuant to Section 5-1006 of the selling price of all tangible
5personal property transferred by such servicemen either in the
6form of tangible personal property or in the form of real
7estate as an incident to a sale of service. If imposed, such
8tax shall only be imposed in 1/4% increments. On and after
9September 1, 1991, this additional tax may not be imposed on
10the sales of food for human consumption which is to be consumed
11off the premises where it is sold (other than alcoholic
12beverages, soft drinks and food which has been prepared for
13immediate consumption) and prescription and nonprescription
14medicines, drugs, medical appliances and insulin, urine
15testing materials, syringes and needles used by diabetics. The
16tax imposed by a home rule county pursuant to this Section and
17all civil penalties that may be assessed as an incident thereof
18shall be collected and enforced by the State Department of
19Revenue. The certificate of registration which is issued by the
20Department to a retailer under the Retailers' Occupation Tax
21Act or under the Service Occupation Tax Act shall permit such
22registrant to engage in a business which is taxable under any
23ordinance or resolution enacted pursuant to this Section
24without registering separately with the Department under such
25ordinance or resolution or under this Section. The Department
26shall have full power to administer and enforce this Section;

HB0216- 30 -LRB101 03001 HLH 48009 b
1to collect all taxes and penalties due hereunder; to dispose of
2taxes and penalties so collected in the manner hereinafter
3provided; and to determine all rights to credit memoranda
4arising on account of the erroneous payment of tax or penalty
5hereunder. In the administration of, and compliance with, this
6Section the Department and persons who are subject to this
7Section shall have the same rights, remedies, privileges,
8immunities, powers and duties, and be subject to the same
9conditions, restrictions, limitations, penalties and
10definitions of terms, and employ the same modes of procedure,
11as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
12respect to all provisions therein other than the State rate of
13tax), 4 (except that the reference to the State shall be to the
14taxing county), 5, 7, 8 (except that the jurisdiction to which
15the tax shall be a debt to the extent indicated in that Section
168 shall be the taxing county), 9 (except as to the disposition
17of taxes and penalties collected, and except that the returned
18merchandise credit for this county tax may not be taken against
19any State tax), 10, 11, 12 (except the reference therein to
20Section 2b of the Retailers' Occupation Tax Act), 13 (except
21that any reference to the State shall mean the taxing county),
22the first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
23Service Occupation Tax Act and Section 3-7 of the Uniform
24Penalty and Interest Act, as fully as if those provisions were
25set forth herein.
26 No tax may be imposed by a home rule county pursuant to

HB0216- 31 -LRB101 03001 HLH 48009 b
1this Section unless such county also imposes a tax at the same
2rate pursuant to Section 5-1006.
3 Persons subject to any tax imposed pursuant to the
4authority granted in this Section may reimburse themselves for
5their serviceman's tax liability hereunder by separately
6stating such tax as an additional charge, which charge may be
7stated in combination, in a single amount, with State tax which
8servicemen are authorized to collect under the Service Use Tax
9Act, pursuant to such bracket schedules as the Department may
10prescribe.
11 Whenever the Department determines that a refund should be
12made under this Section to a claimant instead of issuing credit
13memorandum, the Department shall notify the State Comptroller,
14who shall cause the order to be drawn for the amount specified,
15and to the person named, in such notification from the
16Department. Such refund shall be paid by the State Treasurer
17out of the home rule county retailers' occupation tax fund.
18 The Department shall forthwith pay over to the State
19Treasurer, ex-officio, as trustee, all taxes and penalties
20collected hereunder.
21 As soon as possible after the first day of each month,
22beginning January 1, 2011, upon certification of the Department
23of Revenue, the Comptroller shall order transferred, and the
24Treasurer shall transfer, to the STAR Bonds Revenue Fund the
25local sales tax increment, as defined in the Innovation
26Development and Economy Act, collected under this Section

HB0216- 32 -LRB101 03001 HLH 48009 b
1during the second preceding calendar month for sales within a
2STAR bond district.
3 After the monthly transfer to the STAR Bonds Revenue Fund,
4on or before the 25th day of each calendar month, the
5Department shall prepare and certify to the Comptroller the
6disbursement of stated sums of money to named counties, the
7counties to be those from which suppliers and servicemen have
8paid taxes or penalties hereunder to the Department during the
9second preceding calendar month. The amount to be paid to each
10county shall be the amount (not including credit memoranda)
11collected hereunder during the second preceding calendar month
12by the Department, and not including an amount equal to the
13amount of refunds made during the second preceding calendar
14month by the Department on behalf of such county, and not
15including any amounts that are transferred to the STAR Bonds
16Revenue Fund, less 1.5% of the remainder, which the Department
17shall transfer into the Tax Compliance and Administration Fund.
18The Department, at the time of each monthly disbursement to the
19counties, shall prepare and certify to the State Comptroller
20the amount to be transferred into the Tax Compliance and
21Administration Fund under this Section. Within 10 days after
22receipt, by the Comptroller, of the disbursement certification
23to the counties and the Tax Compliance and Administration Fund
24provided for in this Section to be given to the Comptroller by
25the Department, the Comptroller shall cause the orders to be
26drawn for the respective amounts in accordance with the

HB0216- 33 -LRB101 03001 HLH 48009 b
1directions contained in such certification.
2 In addition to the disbursement required by the preceding
3paragraph, an allocation shall be made in each year to each
4county which received more than $500,000 in disbursements under
5the preceding paragraph in the preceding calendar year. The
6allocation shall be in an amount equal to the average monthly
7distribution made to each such county under the preceding
8paragraph during the preceding calendar year (excluding the 2
9months of highest receipts). The distribution made in March of
10each year subsequent to the year in which an allocation was
11made pursuant to this paragraph and the preceding paragraph
12shall be reduced by the amount allocated and disbursed under
13this paragraph in the preceding calendar year. The Department
14shall prepare and certify to the Comptroller for disbursement
15the allocations made in accordance with this paragraph.
16 Nothing in this Section shall be construed to authorize a
17county to impose a tax upon the privilege of engaging in any
18business which under the Constitution of the United States may
19not be made the subject of taxation by this State.
20 An ordinance or resolution imposing or discontinuing a tax
21hereunder or effecting a change in the rate thereof shall be
22adopted and a certified copy thereof filed with the Department
23on or before the first day of June, whereupon the Department
24shall proceed to administer and enforce this Section as of the
25first day of September next following such adoption and filing.
26Beginning January 1, 1992, an ordinance or resolution imposing

HB0216- 34 -LRB101 03001 HLH 48009 b
1or discontinuing the tax hereunder or effecting a change in the
2rate thereof shall be adopted and a certified copy thereof
3filed with the Department on or before the first day of July,
4whereupon the Department shall proceed to administer and
5enforce this Section as of the first day of October next
6following such adoption and filing. Beginning January 1, 1993,
7an ordinance or resolution imposing or discontinuing the tax
8hereunder or effecting a change in the rate thereof shall be
9adopted and a certified copy thereof filed with the Department
10on or before the first day of October, whereupon the Department
11shall proceed to administer and enforce this Section as of the
12first day of January next following such adoption and filing.
13Beginning April 1, 1998, an ordinance or resolution imposing or
14discontinuing the tax hereunder or effecting a change in the
15rate thereof shall either (i) be adopted and a certified copy
16thereof filed with the Department on or before the first day of
17April, whereupon the Department shall proceed to administer and
18enforce this Section as of the first day of July next following
19the adoption and filing; or (ii) be adopted and a certified
20copy thereof filed with the Department on or before the first
21day of October, whereupon the Department shall proceed to
22administer and enforce this Section as of the first day of
23January next following the adoption and filing.
24 This Section shall be known and may be cited as the Home
25Rule County Service Occupation Tax Law.
26(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)

HB0216- 35 -LRB101 03001 HLH 48009 b
1 Section 15. The Illinois Municipal Code is amended by
2changing Sections 8-11-1, 8-11-1.3, 8-11-1.4, 8-11-1.6,
38-11-1.7, and 8-11-5 as follows:
4 (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
5 Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
6Act. The corporate authorities of a home rule municipality may
7impose a tax upon all persons engaged in the business of
8selling tangible personal property, other than an item of
9tangible personal property titled or registered with an agency
10of this State's government, at retail in the municipality on
11the gross receipts from these sales made in the course of such
12business. If imposed, the tax shall only be imposed in 1/4%
13increments. On and after September 1, 1991, this additional tax
14may not be imposed on the sales of food for human consumption
15that is to be consumed off the premises where it is sold (other
16than alcoholic beverages, soft drinks and food that has been
17prepared for immediate consumption) and prescription and
18nonprescription medicines, drugs, medical appliances and
19insulin, urine testing materials, syringes and needles used by
20diabetics. The tax imposed by a home rule municipality under
21this Section and all civil penalties that may be assessed as an
22incident of the tax shall be collected and enforced by the
23State Department of Revenue. The certificate of registration
24that is issued by the Department to a retailer under the

HB0216- 36 -LRB101 03001 HLH 48009 b
1Retailers' Occupation Tax Act shall permit the retailer to
2engage in a business that is taxable under any ordinance or
3resolution enacted pursuant to this Section without
4registering separately with the Department under such
5ordinance or resolution or under this Section. The Department
6shall have full power to administer and enforce this Section;
7to collect all taxes and penalties due hereunder; to dispose of
8taxes and penalties so collected in the manner hereinafter
9provided; and to determine all rights to credit memoranda
10arising on account of the erroneous payment of tax or penalty
11hereunder. In the administration of, and compliance with, this
12Section the Department and persons who are subject to this
13Section shall have the same rights, remedies, privileges,
14immunities, powers and duties, and be subject to the same
15conditions, restrictions, limitations, penalties and
16definitions of terms, and employ the same modes of procedure,
17as are prescribed in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k,
181m, 1n, 2 through 2-65 (in respect to all provisions therein
19other than the State rate of tax), 2c, 3 (except as to the
20disposition of taxes and penalties collected), 4, 5, 5a, 5b,
215c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8,
229, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
23Section 3-7 of the Uniform Penalty and Interest Act, as fully
24as if those provisions were set forth herein.
25 No tax may be imposed by a home rule municipality under
26this Section unless the municipality also imposes a tax at the

HB0216- 37 -LRB101 03001 HLH 48009 b
1same rate under Section 8-11-5 of this Act.
2 Persons subject to any tax imposed under the authority
3granted in this Section may reimburse themselves for their
4seller's tax liability hereunder by separately stating that tax
5as an additional charge, which charge may be stated in
6combination, in a single amount, with State tax which sellers
7are required to collect under the Use Tax Act, pursuant to such
8bracket schedules as the Department may prescribe.
9 Whenever the Department determines that a refund should be
10made under this Section to a claimant instead of issuing a
11credit memorandum, the Department shall notify the State
12Comptroller, who shall cause the order to be drawn for the
13amount specified and to the person named in the notification
14from the Department. The refund shall be paid by the State
15Treasurer out of the home rule municipal retailers' occupation
16tax fund.
17 The Department shall immediately pay over to the State
18Treasurer, ex officio, as trustee, all taxes and penalties
19collected hereunder.
20 As soon as possible after the first day of each month,
21beginning January 1, 2011, upon certification of the Department
22of Revenue, the Comptroller shall order transferred, and the
23Treasurer shall transfer, to the STAR Bonds Revenue Fund the
24local sales tax increment, as defined in the Innovation
25Development and Economy Act, collected under this Section
26during the second preceding calendar month for sales within a

HB0216- 38 -LRB101 03001 HLH 48009 b
1STAR bond district.
2 After the monthly transfer to the STAR Bonds Revenue Fund,
3on or before the 25th day of each calendar month, the
4Department shall prepare and certify to the Comptroller the
5disbursement of stated sums of money to named municipalities,
6the municipalities to be those from which retailers have paid
7taxes or penalties hereunder to the Department during the
8second preceding calendar month. The amount to be paid to each
9municipality shall be the amount (not including credit
10memoranda) collected hereunder during the second preceding
11calendar month by the Department plus an amount the Department
12determines is necessary to offset any amounts that were
13erroneously paid to a different taxing body, and not including
14an amount equal to the amount of refunds made during the second
15preceding calendar month by the Department on behalf of such
16municipality, and not including any amount that the Department
17determines is necessary to offset any amounts that were payable
18to a different taxing body but were erroneously paid to the
19municipality, and not including any amounts that are
20transferred to the STAR Bonds Revenue Fund, less 1.5% of the
21remainder, which the Department shall transfer into the Tax
22Compliance and Administration Fund. The Department, at the time
23of each monthly disbursement to the municipalities, shall
24prepare and certify to the State Comptroller the amount to be
25transferred into the Tax Compliance and Administration Fund
26under this Section. Within 10 days after receipt by the

HB0216- 39 -LRB101 03001 HLH 48009 b
1Comptroller of the disbursement certification to the
2municipalities and the Tax Compliance and Administration Fund
3provided for in this Section to be given to the Comptroller by
4the Department, the Comptroller shall cause the orders to be
5drawn for the respective amounts in accordance with the
6directions contained in the certification.
7 In addition to the disbursement required by the preceding
8paragraph and in order to mitigate delays caused by
9distribution procedures, an allocation shall, if requested, be
10made within 10 days after January 14, 1991, and in November of
111991 and each year thereafter, to each municipality that
12received more than $500,000 during the preceding fiscal year,
13(July 1 through June 30) whether collected by the municipality
14or disbursed by the Department as required by this Section.
15Within 10 days after January 14, 1991, participating
16municipalities shall notify the Department in writing of their
17intent to participate. In addition, for the initial
18distribution, participating municipalities shall certify to
19the Department the amounts collected by the municipality for
20each month under its home rule occupation and service
21occupation tax during the period July 1, 1989 through June 30,
221990. The allocation within 10 days after January 14, 1991,
23shall be in an amount equal to the monthly average of these
24amounts, excluding the 2 months of highest receipts. The
25monthly average for the period of July 1, 1990 through June 30,
261991 will be determined as follows: the amounts collected by

HB0216- 40 -LRB101 03001 HLH 48009 b
1the municipality under its home rule occupation and service
2occupation tax during the period of July 1, 1990 through
3September 30, 1990, plus amounts collected by the Department
4and paid to such municipality through June 30, 1991, excluding
5the 2 months of highest receipts. The monthly average for each
6subsequent period of July 1 through June 30 shall be an amount
7equal to the monthly distribution made to each such
8municipality under the preceding paragraph during this period,
9excluding the 2 months of highest receipts. The distribution
10made in November 1991 and each year thereafter under this
11paragraph and the preceding paragraph shall be reduced by the
12amount allocated and disbursed under this paragraph in the
13preceding period of July 1 through June 30. The Department
14shall prepare and certify to the Comptroller for disbursement
15the allocations made in accordance with this paragraph.
16 For the purpose of determining the local governmental unit
17whose tax is applicable, a retail sale by a producer of coal or
18other mineral mined in Illinois is a sale at retail at the
19place where the coal or other mineral mined in Illinois is
20extracted from the earth. This paragraph does not apply to coal
21or other mineral when it is delivered or shipped by the seller
22to the purchaser at a point outside Illinois so that the sale
23is exempt under the United States Constitution as a sale in
24interstate or foreign commerce.
25 Nothing in this Section shall be construed to authorize a
26municipality to impose a tax upon the privilege of engaging in

HB0216- 41 -LRB101 03001 HLH 48009 b
1any business which under the Constitution of the United States
2may not be made the subject of taxation by this State.
3 An ordinance or resolution imposing or discontinuing a tax
4hereunder or effecting a change in the rate thereof shall be
5adopted and a certified copy thereof filed with the Department
6on or before the first day of June, whereupon the Department
7shall proceed to administer and enforce this Section as of the
8first day of September next following the adoption and filing.
9Beginning January 1, 1992, an ordinance or resolution imposing
10or discontinuing the tax hereunder or effecting a change in the
11rate thereof shall be adopted and a certified copy thereof
12filed with the Department on or before the first day of July,
13whereupon the Department shall proceed to administer and
14enforce this Section as of the first day of October next
15following such adoption and filing. Beginning January 1, 1993,
16an ordinance or resolution imposing or discontinuing the tax
17hereunder or effecting a change in the rate thereof shall be
18adopted and a certified copy thereof filed with the Department
19on or before the first day of October, whereupon the Department
20shall proceed to administer and enforce this Section as of the
21first day of January next following the adoption and filing.
22However, a municipality located in a county with a population
23in excess of 3,000,000 that elected to become a home rule unit
24at the general primary election in 1994 may adopt an ordinance
25or resolution imposing the tax under this Section and file a
26certified copy of the ordinance or resolution with the

HB0216- 42 -LRB101 03001 HLH 48009 b
1Department on or before July 1, 1994. The Department shall then
2proceed to administer and enforce this Section as of October 1,
31994. Beginning April 1, 1998, an ordinance or resolution
4imposing or discontinuing the tax hereunder or effecting a
5change in the rate thereof shall either (i) be adopted and a
6certified copy thereof filed with the Department on or before
7the first day of April, whereupon the Department shall proceed
8to administer and enforce this Section as of the first day of
9July next following the adoption and filing; or (ii) be adopted
10and a certified copy thereof filed with the Department on or
11before the first day of October, whereupon the Department shall
12proceed to administer and enforce this Section as of the first
13day of January next following the adoption and filing.
14 When certifying the amount of a monthly disbursement to a
15municipality under this Section, the Department shall increase
16or decrease the amount by an amount necessary to offset any
17misallocation of previous disbursements. The offset amount
18shall be the amount erroneously disbursed within the previous 6
19months from the time a misallocation is discovered.
20 Any unobligated balance remaining in the Municipal
21Retailers' Occupation Tax Fund on December 31, 1989, which fund
22was abolished by Public Act 85-1135, and all receipts of
23municipal tax as a result of audits of liability periods prior
24to January 1, 1990, shall be paid into the Local Government Tax
25Fund for distribution as provided by this Section prior to the
26enactment of Public Act 85-1135. All receipts of municipal tax

HB0216- 43 -LRB101 03001 HLH 48009 b
1as a result of an assessment not arising from an audit, for
2liability periods prior to January 1, 1990, shall be paid into
3the Local Government Tax Fund for distribution before July 1,
41990, as provided by this Section prior to the enactment of
5Public Act 85-1135; and on and after July 1, 1990, all such
6receipts shall be distributed as provided in Section 6z-18 of
7the State Finance Act.
8 As used in this Section, "municipal" and "municipality"
9means a city, village or incorporated town, including an
10incorporated town that has superseded a civil township.
11 This Section shall be known and may be cited as the Home
12Rule Municipal Retailers' Occupation Tax Act.
13(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
14100-587, eff. 6-4-18.)
15 (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
16 Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
17Occupation Tax Act. The corporate authorities of a non-home
18rule municipality may impose a tax upon all persons engaged in
19the business of selling tangible personal property, other than
20on an item of tangible personal property which is titled and
21registered by an agency of this State's Government, at retail
22in the municipality for expenditure on public infrastructure or
23for property tax relief or both as defined in Section 8-11-1.2
24if approved by referendum as provided in Section 8-11-1.1, of
25the gross receipts from such sales made in the course of such

HB0216- 44 -LRB101 03001 HLH 48009 b
1business. If the tax is approved by referendum on or after July
214, 2010 (the effective date of Public Act 96-1057), the
3corporate authorities of a non-home rule municipality may,
4until December 31, 2020, use the proceeds of the tax for
5expenditure on municipal operations, in addition to or in lieu
6of any expenditure on public infrastructure or for property tax
7relief. The tax imposed may not be more than 1% and may be
8imposed only in 1/4% increments. The tax may not be imposed on
9the sale of food for human consumption that is to be consumed
10off the premises where it is sold (other than alcoholic
11beverages, soft drinks, and food that has been prepared for
12immediate consumption) and prescription and nonprescription
13medicines, drugs, medical appliances, and insulin, urine
14testing materials, syringes, and needles used by diabetics. The
15tax imposed by a municipality pursuant to this Section and all
16civil penalties that may be assessed as an incident thereof
17shall be collected and enforced by the State Department of
18Revenue. The certificate of registration which is issued by the
19Department to a retailer under the Retailers' Occupation Tax
20Act shall permit such retailer to engage in a business which is
21taxable under any ordinance or resolution enacted pursuant to
22this Section without registering separately with the
23Department under such ordinance or resolution or under this
24Section. The Department shall have full power to administer and
25enforce this Section; to collect all taxes and penalties due
26hereunder; to dispose of taxes and penalties so collected in

HB0216- 45 -LRB101 03001 HLH 48009 b
1the manner hereinafter provided, and to determine all rights to
2credit memoranda, arising on account of the erroneous payment
3of tax or penalty hereunder. In the administration of, and
4compliance with, this Section, the Department and persons who
5are subject to this Section shall have the same rights,
6remedies, privileges, immunities, powers and duties, and be
7subject to the same conditions, restrictions, limitations,
8penalties and definitions of terms, and employ the same modes
9of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
101e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
11therein other than the State rate of tax), 2c, 3 (except as to
12the disposition of taxes and penalties collected), 4, 5, 5a,
135b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
147, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act
15and Section 3-7 of the Uniform Penalty and Interest Act as
16fully as if those provisions were set forth herein.
17 No municipality may impose a tax under this Section unless
18the municipality also imposes a tax at the same rate under
19Section 8-11-1.4 of this Code.
20 Persons subject to any tax imposed pursuant to the
21authority granted in this Section may reimburse themselves for
22their seller's tax liability hereunder by separately stating
23such tax as an additional charge, which charge may be stated in
24combination, in a single amount, with State tax which sellers
25are required to collect under the Use Tax Act, pursuant to such
26bracket schedules as the Department may prescribe.

HB0216- 46 -LRB101 03001 HLH 48009 b
1 Whenever the Department determines that a refund should be
2made under this Section to a claimant instead of issuing a
3credit memorandum, the Department shall notify the State
4Comptroller, who shall cause the order to be drawn for the
5amount specified, and to the person named, in such notification
6from the Department. Such refund shall be paid by the State
7Treasurer out of the non-home rule municipal retailers'
8occupation tax fund.
9 The Department shall forthwith pay over to the State
10Treasurer, ex officio, as trustee, all taxes and penalties
11collected hereunder.
12 As soon as possible after the first day of each month,
13beginning January 1, 2011, upon certification of the Department
14of Revenue, the Comptroller shall order transferred, and the
15Treasurer shall transfer, to the STAR Bonds Revenue Fund the
16local sales tax increment, as defined in the Innovation
17Development and Economy Act, collected under this Section
18during the second preceding calendar month for sales within a
19STAR bond district.
20 After the monthly transfer to the STAR Bonds Revenue Fund,
21on or before the 25th day of each calendar month, the
22Department shall prepare and certify to the Comptroller the
23disbursement of stated sums of money to named municipalities,
24the municipalities to be those from which retailers have paid
25taxes or penalties hereunder to the Department during the
26second preceding calendar month. The amount to be paid to each

HB0216- 47 -LRB101 03001 HLH 48009 b
1municipality shall be the amount (not including credit
2memoranda) collected hereunder during the second preceding
3calendar month by the Department plus an amount the Department
4determines is necessary to offset any amounts which were
5erroneously paid to a different taxing body, and not including
6an amount equal to the amount of refunds made during the second
7preceding calendar month by the Department on behalf of such
8municipality, and not including any amount which the Department
9determines is necessary to offset any amounts which were
10payable to a different taxing body but were erroneously paid to
11the municipality, and not including any amounts that are
12transferred to the STAR Bonds Revenue Fund, less 1.5% of the
13remainder, which the Department shall transfer into the Tax
14Compliance and Administration Fund. The Department, at the time
15of each monthly disbursement to the municipalities, shall
16prepare and certify to the State Comptroller the amount to be
17transferred into the Tax Compliance and Administration Fund
18under this Section. Within 10 days after receipt, by the
19Comptroller, of the disbursement certification to the
20municipalities and the Tax Compliance and Administration Fund
21provided for in this Section to be given to the Comptroller by
22the Department, the Comptroller shall cause the orders to be
23drawn for the respective amounts in accordance with the
24directions contained in such certification.
25 For the purpose of determining the local governmental unit
26whose tax is applicable, a retail sale, by a producer of coal

HB0216- 48 -LRB101 03001 HLH 48009 b
1or other mineral mined in Illinois, is a sale at retail at the
2place where the coal or other mineral mined in Illinois is
3extracted from the earth. This paragraph does not apply to coal
4or other mineral when it is delivered or shipped by the seller
5to the purchaser at a point outside Illinois so that the sale
6is exempt under the Federal Constitution as a sale in
7interstate or foreign commerce.
8 Nothing in this Section shall be construed to authorize a
9municipality to impose a tax upon the privilege of engaging in
10any business which under the constitution of the United States
11may not be made the subject of taxation by this State.
12 When certifying the amount of a monthly disbursement to a
13municipality under this Section, the Department shall increase
14or decrease such amount by an amount necessary to offset any
15misallocation of previous disbursements. The offset amount
16shall be the amount erroneously disbursed within the previous 6
17months from the time a misallocation is discovered.
18 The Department of Revenue shall implement this amendatory
19Act of the 91st General Assembly so as to collect the tax on
20and after January 1, 2002.
21 As used in this Section, "municipal" and "municipality"
22means a city, village or incorporated town, including an
23incorporated town which has superseded a civil township.
24 This Section shall be known and may be cited as the
25"Non-Home Rule Municipal Retailers' Occupation Tax Act".
26(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;

HB0216- 49 -LRB101 03001 HLH 48009 b
1100-587, eff. 6-4-18.)
2 (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
3 Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
4Tax Act. The corporate authorities of a non-home rule
5municipality may impose a tax upon all persons engaged, in such
6municipality, in the business of making sales of service for
7expenditure on public infrastructure or for property tax relief
8or both as defined in Section 8-11-1.2 if approved by
9referendum as provided in Section 8-11-1.1, of the selling
10price of all tangible personal property transferred by such
11servicemen either in the form of tangible personal property or
12in the form of real estate as an incident to a sale of service.
13If the tax is approved by referendum on or after July 14, 2010
14(the effective date of Public Act 96-1057), the corporate
15authorities of a non-home rule municipality may, until December
1631, 2020, use the proceeds of the tax for expenditure on
17municipal operations, in addition to or in lieu of any
18expenditure on public infrastructure or for property tax
19relief. The tax imposed may not be more than 1% and may be
20imposed only in 1/4% increments. The tax may not be imposed on
21the sale of food for human consumption that is to be consumed
22off the premises where it is sold (other than alcoholic
23beverages, soft drinks, and food that has been prepared for
24immediate consumption) and prescription and nonprescription
25medicines, drugs, medical appliances, and insulin, urine

HB0216- 50 -LRB101 03001 HLH 48009 b
1testing materials, syringes, and needles used by diabetics. The
2tax imposed by a municipality pursuant to this Section and all
3civil penalties that may be assessed as an incident thereof
4shall be collected and enforced by the State Department of
5Revenue. The certificate of registration which is issued by the
6Department to a retailer under the Retailers' Occupation Tax
7Act or under the Service Occupation Tax Act shall permit such
8registrant to engage in a business which is taxable under any
9ordinance or resolution enacted pursuant to this Section
10without registering separately with the Department under such
11ordinance or resolution or under this Section. The Department
12shall have full power to administer and enforce this Section;
13to collect all taxes and penalties due hereunder; to dispose of
14taxes and penalties so collected in the manner hereinafter
15provided, and to determine all rights to credit memoranda
16arising on account of the erroneous payment of tax or penalty
17hereunder. In the administration of, and compliance with, this
18Section the Department and persons who are subject to this
19Section shall have the same rights, remedies, privileges,
20immunities, powers and duties, and be subject to the same
21conditions, restrictions, limitations, penalties and
22definitions of terms, and employ the same modes of procedure,
23as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
24respect to all provisions therein other than the State rate of
25tax), 4 (except that the reference to the State shall be to the
26taxing municipality), 5, 7, 8 (except that the jurisdiction to

HB0216- 51 -LRB101 03001 HLH 48009 b
1which the tax shall be a debt to the extent indicated in that
2Section 8 shall be the taxing municipality), 9 (except as to
3the disposition of taxes and penalties collected, and except
4that the returned merchandise credit for this municipal tax may
5not be taken against any State tax), 10, 11, 12 (except the
6reference therein to Section 2b of the Retailers' Occupation
7Tax Act), 13 (except that any reference to the State shall mean
8the taxing municipality), the first paragraph of Section 15,
916, 17, 18, 19 and 20 of the Service Occupation Tax Act and
10Section 3-7 of the Uniform Penalty and Interest Act, as fully
11as if those provisions were set forth herein.
12 No municipality may impose a tax under this Section unless
13the municipality also imposes a tax at the same rate under
14Section 8-11-1.3 of this Code.
15 Persons subject to any tax imposed pursuant to the
16authority granted in this Section may reimburse themselves for
17their serviceman's tax liability hereunder by separately
18stating such tax as an additional charge, which charge may be
19stated in combination, in a single amount, with State tax which
20servicemen are authorized to collect under the Service Use Tax
21Act, pursuant to such bracket schedules as the Department may
22prescribe.
23 Whenever the Department determines that a refund should be
24made under this Section to a claimant instead of issuing credit
25memorandum, the Department shall notify the State Comptroller,
26who shall cause the order to be drawn for the amount specified,

HB0216- 52 -LRB101 03001 HLH 48009 b
1and to the person named, in such notification from the
2Department. Such refund shall be paid by the State Treasurer
3out of the municipal retailers' occupation tax fund.
4 The Department shall forthwith pay over to the State
5Treasurer, ex officio, as trustee, all taxes and penalties
6collected hereunder.
7 As soon as possible after the first day of each month,
8beginning January 1, 2011, upon certification of the Department
9of Revenue, the Comptroller shall order transferred, and the
10Treasurer shall transfer, to the STAR Bonds Revenue Fund the
11local sales tax increment, as defined in the Innovation
12Development and Economy Act, collected under this Section
13during the second preceding calendar month for sales within a
14STAR bond district.
15 After the monthly transfer to the STAR Bonds Revenue Fund,
16on or before the 25th day of each calendar month, the
17Department shall prepare and certify to the Comptroller the
18disbursement of stated sums of money to named municipalities,
19the municipalities to be those from which suppliers and
20servicemen have paid taxes or penalties hereunder to the
21Department during the second preceding calendar month. The
22amount to be paid to each municipality shall be the amount (not
23including credit memoranda) collected hereunder during the
24second preceding calendar month by the Department, and not
25including an amount equal to the amount of refunds made during
26the second preceding calendar month by the Department on behalf

HB0216- 53 -LRB101 03001 HLH 48009 b
1of such municipality, and not including any amounts that are
2transferred to the STAR Bonds Revenue Fund, less 1.5% of the
3remainder, which the Department shall transfer into the Tax
4Compliance and Administration Fund. The Department, at the time
5of each monthly disbursement to the municipalities, shall
6prepare and certify to the State Comptroller the amount to be
7transferred into the Tax Compliance and Administration Fund
8under this Section. Within 10 days after receipt, by the
9Comptroller, of the disbursement certification to the
10municipalities and , the General Revenue Fund, and the Tax
11Compliance and Administration Fund provided for in this Section
12to be given to the Comptroller by the Department, the
13Comptroller shall cause the orders to be drawn for the
14respective amounts in accordance with the directions contained
15in such certification.
16 The Department of Revenue shall implement this amendatory
17Act of the 91st General Assembly so as to collect the tax on
18and after January 1, 2002.
19 Nothing in this Section shall be construed to authorize a
20municipality to impose a tax upon the privilege of engaging in
21any business which under the constitution of the United States
22may not be made the subject of taxation by this State.
23 As used in this Section, "municipal" or "municipality"
24means or refers to a city, village or incorporated town,
25including an incorporated town which has superseded a civil
26township.

HB0216- 54 -LRB101 03001 HLH 48009 b
1 This Section shall be known and may be cited as the
2"Non-Home Rule Municipal Service Occupation Tax Act".
3(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
4 (65 ILCS 5/8-11-1.6)
5 Sec. 8-11-1.6. Non-home rule municipal retailers
6occupation tax; municipalities between 20,000 and 25,000. The
7corporate authorities of a non-home rule municipality with a
8population of more than 20,000 but less than 25,000 that has,
9prior to January 1, 1987, established a Redevelopment Project
10Area that has been certified as a State Sales Tax Boundary and
11has issued bonds or otherwise incurred indebtedness to pay for
12costs in excess of $5,000,000, which is secured in part by a
13tax increment allocation fund, in accordance with the
14provisions of Division 11-74.4 of this Code may, by passage of
15an ordinance, impose a tax upon all persons engaged in the
16business of selling tangible personal property, other than on
17an item of tangible personal property that is titled and
18registered by an agency of this State's Government, at retail
19in the municipality. This tax may not be imposed on the sales
20of food for human consumption that is to be consumed off the
21premises where it is sold (other than alcoholic beverages, soft
22drinks, and food that has been prepared for immediate
23consumption) and prescription and nonprescription medicines,
24drugs, medical appliances and insulin, urine testing
25materials, syringes, and needles used by diabetics. If imposed,

HB0216- 55 -LRB101 03001 HLH 48009 b
1the tax shall only be imposed in .25% increments of the gross
2receipts from such sales made in the course of business. Any
3tax imposed by a municipality under this Section and all civil
4penalties that may be assessed as an incident thereof shall be
5collected and enforced by the State Department of Revenue. An
6ordinance imposing a tax hereunder or effecting a change in the
7rate thereof shall be adopted and a certified copy thereof
8filed with the Department on or before the first day of
9October, whereupon the Department shall proceed to administer
10and enforce this Section as of the first day of January next
11following such adoption and filing. The certificate of
12registration that is issued by the Department to a retailer
13under the Retailers' Occupation Tax Act shall permit the
14retailer to engage in a business that is taxable under any
15ordinance or resolution enacted under this Section without
16registering separately with the Department under the ordinance
17or resolution or under this Section. The Department shall have
18full power to administer and enforce this Section, to collect
19all taxes and penalties due hereunder, to dispose of taxes and
20penalties so collected in the manner hereinafter provided, and
21to determine all rights to credit memoranda, arising on account
22of the erroneous payment of tax or penalty hereunder. In the
23administration of, and compliance with this Section, the
24Department and persons who are subject to this Section shall
25have the same rights, remedies, privileges, immunities,
26powers, and duties, and be subject to the same conditions,

HB0216- 56 -LRB101 03001 HLH 48009 b
1restrictions, limitations, penalties, and definitions of
2terms, and employ the same modes of procedure, as are
3prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
4through 2-65 (in respect to all provisions therein other than
5the State rate of tax), 2c, 3 (except as to the disposition of
6taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
75g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
8and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
9the Uniform Penalty and Interest Act as fully as if those
10provisions were set forth herein.
11 A tax may not be imposed by a municipality under this
12Section unless the municipality also imposes a tax at the same
13rate under Section 8-11-1.7 of this Act.
14 Persons subject to any tax imposed under the authority
15granted in this Section may reimburse themselves for their
16seller's tax liability hereunder by separately stating the tax
17as an additional charge, which charge may be stated in
18combination, in a single amount, with State tax which sellers
19are required to collect under the Use Tax Act, pursuant to such
20bracket schedules as the Department may prescribe.
21 Whenever the Department determines that a refund should be
22made under this Section to a claimant, instead of issuing a
23credit memorandum, the Department shall notify the State
24Comptroller, who shall cause the order to be drawn for the
25amount specified, and to the person named in the notification
26from the Department. The refund shall be paid by the State

HB0216- 57 -LRB101 03001 HLH 48009 b
1Treasurer out of the Non-Home Rule Municipal Retailers'
2Occupation Tax Fund, which is hereby created.
3 The Department shall forthwith pay over to the State
4Treasurer, ex officio, as trustee, all taxes and penalties
5collected hereunder.
6 As soon as possible after the first day of each month,
7beginning January 1, 2011, upon certification of the Department
8of Revenue, the Comptroller shall order transferred, and the
9Treasurer shall transfer, to the STAR Bonds Revenue Fund the
10local sales tax increment, as defined in the Innovation
11Development and Economy Act, collected under this Section
12during the second preceding calendar month for sales within a
13STAR bond district.
14 After the monthly transfer to the STAR Bonds Revenue Fund,
15on or before the 25th day of each calendar month, the
16Department shall prepare and certify to the Comptroller the
17disbursement of stated sums of money to named municipalities,
18the municipalities to be those from which retailers have paid
19taxes or penalties hereunder to the Department during the
20second preceding calendar month. The amount to be paid to each
21municipality shall be the amount (not including credit
22memoranda) collected hereunder during the second preceding
23calendar month by the Department plus an amount the Department
24determines is necessary to offset any amounts that were
25erroneously paid to a different taxing body, and not including
26an amount equal to the amount of refunds made during the second

HB0216- 58 -LRB101 03001 HLH 48009 b
1preceding calendar month by the Department on behalf of the
2municipality, and not including any amount that the Department
3determines is necessary to offset any amounts that were payable
4to a different taxing body but were erroneously paid to the
5municipality, and not including any amounts that are
6transferred to the STAR Bonds Revenue Fund, less 1.5% of the
7remainder, which the Department shall transfer into the Tax
8Compliance and Administration Fund. The Department, at the time
9of each monthly disbursement to the municipalities, shall
10prepare and certify to the State Comptroller the amount to be
11transferred into the Tax Compliance and Administration Fund
12under this Section. Within 10 days after receipt by the
13Comptroller of the disbursement certification to the
14municipalities and the Tax Compliance and Administration Fund
15provided for in this Section to be given to the Comptroller by
16the Department, the Comptroller shall cause the orders to be
17drawn for the respective amounts in accordance with the
18directions contained in the certification.
19 For the purpose of determining the local governmental unit
20whose tax is applicable, a retail sale by a producer of coal or
21other mineral mined in Illinois is a sale at retail at the
22place where the coal or other mineral mined in Illinois is
23extracted from the earth. This paragraph does not apply to coal
24or other mineral when it is delivered or shipped by the seller
25to the purchaser at a point outside Illinois so that the sale
26is exempt under the federal Constitution as a sale in

HB0216- 59 -LRB101 03001 HLH 48009 b
1interstate or foreign commerce.
2 Nothing in this Section shall be construed to authorize a
3municipality to impose a tax upon the privilege of engaging in
4any business which under the constitution of the United States
5may not be made the subject of taxation by this State.
6 When certifying the amount of a monthly disbursement to a
7municipality under this Section, the Department shall increase
8or decrease the amount by an amount necessary to offset any
9misallocation of previous disbursements. The offset amount
10shall be the amount erroneously disbursed within the previous 6
11months from the time a misallocation is discovered.
12 As used in this Section, "municipal" and "municipality"
13means a city, village, or incorporated town, including an
14incorporated town that has superseded a civil township.
15(Source: P.A. 99-217, eff. 7-31-15; 99-642, eff. 7-28-16;
16100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 100-863, eff.
178-14-18.)
18 (65 ILCS 5/8-11-1.7)
19 Sec. 8-11-1.7. Non-home rule municipal service occupation
20tax; municipalities between 20,000 and 25,000. The corporate
21authorities of a non-home rule municipality with a population
22of more than 20,000 but less than 25,000 as determined by the
23last preceding decennial census that has, prior to January 1,
241987, established a Redevelopment Project Area that has been
25certified as a State Sales Tax Boundary and has issued bonds or

HB0216- 60 -LRB101 03001 HLH 48009 b
1otherwise incurred indebtedness to pay for costs in excess of
2$5,000,000, which is secured in part by a tax increment
3allocation fund, in accordance with the provisions of Division
411-74.4 of this Code may, by passage of an ordinance, impose a
5tax upon all persons engaged in the municipality in the
6business of making sales of service. If imposed, the tax shall
7only be imposed in .25% increments of the selling price of all
8tangible personal property transferred by such servicemen
9either in the form of tangible personal property or in the form
10of real estate as an incident to a sale of service. This tax
11may not be imposed on the sales of food for human consumption
12that is to be consumed off the premises where it is sold (other
13than alcoholic beverages, soft drinks, and food that has been
14prepared for immediate consumption) and prescription and
15nonprescription medicines, drugs, medical appliances and
16insulin, urine testing materials, syringes, and needles used by
17diabetics. The tax imposed by a municipality under this Section
18and all civil penalties that may be assessed as an incident
19thereof shall be collected and enforced by the State Department
20of Revenue. An ordinance imposing a tax hereunder or effecting
21a change in the rate thereof shall be adopted and a certified
22copy thereof filed with the Department on or before the first
23day of October, whereupon the Department shall proceed to
24administer and enforce this Section as of the first day of
25January next following such adoption and filing. The
26certificate of registration that is issued by the Department to

HB0216- 61 -LRB101 03001 HLH 48009 b
1a retailer under the Retailers' Occupation Tax Act or under the
2Service Occupation Tax Act shall permit the registrant to
3engage in a business that is taxable under any ordinance or
4resolution enacted under this Section without registering
5separately with the Department under the ordinance or
6resolution or under this Section. The Department shall have
7full power to administer and enforce this Section, to collect
8all taxes and penalties due hereunder, to dispose of taxes and
9penalties so collected in a manner hereinafter provided, and to
10determine all rights to credit memoranda arising on account of
11the erroneous payment of tax or penalty hereunder. In the
12administration of and compliance with this Section, the
13Department and persons who are subject to this Section shall
14have the same rights, remedies, privileges, immunities,
15powers, and duties, and be subject to the same conditions,
16restrictions, limitations, penalties and definitions of terms,
17and employ the same modes of procedure, as are prescribed in
18Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
19provisions therein other than the State rate of tax), 4 (except
20that the reference to the State shall be to the taxing
21municipality), 5, 7, 8 (except that the jurisdiction to which
22the tax shall be a debt to the extent indicated in that Section
238 shall be the taxing municipality), 9 (except as to the
24disposition of taxes and penalties collected, and except that
25the returned merchandise credit for this municipal tax may not
26be taken against any State tax), 10, 11, 12, (except the

HB0216- 62 -LRB101 03001 HLH 48009 b
1reference therein to Section 2b of the Retailers' Occupation
2Tax Act), 13 (except that any reference to the State shall mean
3the taxing municipality), the first paragraph of Sections 15,
416, 17, 18, 19, and 20 of the Service Occupation Tax Act and
5Section 3-7 of the Uniform Penalty and Interest Act, as fully
6as if those provisions were set forth herein.
7 A tax may not be imposed by a municipality under this
8Section unless the municipality also imposes a tax at the same
9rate under Section 8-11-1.6 of this Act.
10 Person subject to any tax imposed under the authority
11granted in this Section may reimburse themselves for their
12servicemen's tax liability hereunder by separately stating the
13tax as an additional charge, which charge may be stated in
14combination, in a single amount, with State tax that servicemen
15are authorized to collect under the Service Use Tax Act, under
16such bracket schedules as the Department may prescribe.
17 Whenever the Department determines that a refund should be
18made under this Section to a claimant instead of issuing credit
19memorandum, the Department shall notify the State Comptroller,
20who shall cause the order to be drawn for the amount specified,
21and to the person named, in such notification from the
22Department. The refund shall be paid by the State Treasurer out
23of the Non-Home Rule Municipal Retailers' Occupation Tax Fund.
24 The Department shall forthwith pay over to the State
25Treasurer, ex officio, as trustee, all taxes and penalties
26collected hereunder.

HB0216- 63 -LRB101 03001 HLH 48009 b
1 As soon as possible after the first day of each month,
2beginning January 1, 2011, upon certification of the Department
3of Revenue, the Comptroller shall order transferred, and the
4Treasurer shall transfer, to the STAR Bonds Revenue Fund the
5local sales tax increment, as defined in the Innovation
6Development and Economy Act, collected under this Section
7during the second preceding calendar month for sales within a
8STAR bond district.
9 After the monthly transfer to the STAR Bonds Revenue Fund,
10on or before the 25th day of each calendar month, the
11Department shall prepare and certify to the Comptroller the
12disbursement of stated sums of money to named municipalities,
13the municipalities to be those from which suppliers and
14servicemen have paid taxes or penalties hereunder to the
15Department during the second preceding calendar month. The
16amount to be paid to each municipality shall be the amount (not
17including credit memoranda) collected hereunder during the
18second preceding calendar month by the Department, and not
19including an amount equal to the amount of refunds made during
20the second preceding calendar month by the Department on behalf
21of such municipality, and not including any amounts that are
22transferred to the STAR Bonds Revenue Fund, less 1.5% of the
23remainder, which the Department shall transfer into the Tax
24Compliance and Administration Fund. The Department, at the time
25of each monthly disbursement to the municipalities, shall
26prepare and certify to the State Comptroller the amount to be

HB0216- 64 -LRB101 03001 HLH 48009 b
1transferred into the Tax Compliance and Administration Fund
2under this Section. Within 10 days after receipt by the
3Comptroller of the disbursement certification to the
4municipalities, the Tax Compliance and Administration Fund,
5and the General Revenue Fund, provided for in this Section to
6be given to the Comptroller by the Department, the Comptroller
7shall cause the orders to be drawn for the respective amounts
8in accordance with the directions contained in the
9certification.
10 When certifying the amount of a monthly disbursement to a
11municipality under this Section, the Department shall increase
12or decrease the amount by an amount necessary to offset any
13misallocation of previous disbursements. The offset amount
14shall be the amount erroneously disbursed within the previous 6
15months from the time a misallocation is discovered.
16 Nothing in this Section shall be construed to authorize a
17municipality to impose a tax upon the privilege of engaging in
18any business which under the constitution of the United States
19may not be made the subject of taxation by this State.
20(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
21100-863, eff. 8-14-18.)
22 (65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
23 Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
24Act. The corporate authorities of a home rule municipality may
25impose a tax upon all persons engaged, in such municipality, in

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1the business of making sales of service at the same rate of tax
2imposed pursuant to Section 8-11-1, of the selling price of all
3tangible personal property transferred by such servicemen
4either in the form of tangible personal property or in the form
5of real estate as an incident to a sale of service. If imposed,
6such tax shall only be imposed in 1/4% increments. On and after
7September 1, 1991, this additional tax may not be imposed on
8the sales of food for human consumption which is to be consumed
9off the premises where it is sold (other than alcoholic
10beverages, soft drinks and food which has been prepared for
11immediate consumption) and prescription and nonprescription
12medicines, drugs, medical appliances and insulin, urine
13testing materials, syringes and needles used by diabetics. The
14tax imposed by a home rule municipality pursuant to this
15Section and all civil penalties that may be assessed as an
16incident thereof shall be collected and enforced by the State
17Department of Revenue. The certificate of registration which is
18issued by the Department to a retailer under the Retailers'
19Occupation Tax Act or under the Service Occupation Tax Act
20shall permit such registrant to engage in a business which is
21taxable under any ordinance or resolution enacted pursuant to
22this Section without registering separately with the
23Department under such ordinance or resolution or under this
24Section. The Department shall have full power to administer and
25enforce this Section; to collect all taxes and penalties due
26hereunder; to dispose of taxes and penalties so collected in

HB0216- 66 -LRB101 03001 HLH 48009 b
1the manner hereinafter provided, and to determine all rights to
2credit memoranda arising on account of the erroneous payment of
3tax or penalty hereunder. In the administration of, and
4compliance with, this Section the Department and persons who
5are subject to this Section shall have the same rights,
6remedies, privileges, immunities, powers and duties, and be
7subject to the same conditions, restrictions, limitations,
8penalties and definitions of terms, and employ the same modes
9of procedure, as are prescribed in Sections 1a-1, 2, 2a, 3
10through 3-50 (in respect to all provisions therein other than
11the State rate of tax), 4 (except that the reference to the
12State shall be to the taxing municipality), 5, 7, 8 (except
13that the jurisdiction to which the tax shall be a debt to the
14extent indicated in that Section 8 shall be the taxing
15municipality), 9 (except as to the disposition of taxes and
16penalties collected, and except that the returned merchandise
17credit for this municipal tax may not be taken against any
18State tax), 10, 11, 12 (except the reference therein to Section
192b of the Retailers' Occupation Tax Act), 13 (except that any
20reference to the State shall mean the taxing municipality), the
21first paragraph of Section 15, 16, 17 (except that credit
22memoranda issued hereunder may not be used to discharge any
23State tax liability), 18, 19 and 20 of the Service Occupation
24Tax Act and Section 3-7 of the Uniform Penalty and Interest
25Act, as fully as if those provisions were set forth herein.
26 No tax may be imposed by a home rule municipality pursuant

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1to this Section unless such municipality also imposes a tax at
2the same rate pursuant to Section 8-11-1 of this Act.
3 Persons subject to any tax imposed pursuant to the
4authority granted in this Section may reimburse themselves for
5their serviceman's tax liability hereunder by separately
6stating such tax as an additional charge, which charge may be
7stated in combination, in a single amount, with State tax which
8servicemen are authorized to collect under the Service Use Tax
9Act, pursuant to such bracket schedules as the Department may
10prescribe.
11 Whenever the Department determines that a refund should be
12made under this Section to a claimant instead of issuing credit
13memorandum, the Department shall notify the State Comptroller,
14who shall cause the order to be drawn for the amount specified,
15and to the person named, in such notification from the
16Department. Such refund shall be paid by the State Treasurer
17out of the home rule municipal retailers' occupation tax fund.
18 The Department shall forthwith pay over to the State
19Treasurer, ex-officio, as trustee, all taxes and penalties
20collected hereunder.
21 As soon as possible after the first day of each month,
22beginning January 1, 2011, upon certification of the Department
23of Revenue, the Comptroller shall order transferred, and the
24Treasurer shall transfer, to the STAR Bonds Revenue Fund the
25local sales tax increment, as defined in the Innovation
26Development and Economy Act, collected under this Section

HB0216- 68 -LRB101 03001 HLH 48009 b
1during the second preceding calendar month for sales within a
2STAR bond district.
3 After the monthly transfer to the STAR Bonds Revenue Fund,
4on or before the 25th day of each calendar month, the
5Department shall prepare and certify to the Comptroller the
6disbursement of stated sums of money to named municipalities,
7the municipalities to be those from which suppliers and
8servicemen have paid taxes or penalties hereunder to the
9Department during the second preceding calendar month. The
10amount to be paid to each municipality shall be the amount (not
11including credit memoranda) collected hereunder during the
12second preceding calendar month by the Department, and not
13including an amount equal to the amount of refunds made during
14the second preceding calendar month by the Department on behalf
15of such municipality, and not including any amounts that are
16transferred to the STAR Bonds Revenue Fund, less 1.5% of the
17remainder, which the Department shall transfer into the Tax
18Compliance and Administration Fund. The Department, at the time
19of each monthly disbursement to the municipalities, shall
20prepare and certify to the State Comptroller the amount to be
21transferred into the Tax Compliance and Administration Fund
22under this Section. Within 10 days after receipt, by the
23Comptroller, of the disbursement certification to the
24municipalities and the Tax Compliance and Administration Fund
25provided for in this Section to be given to the Comptroller by
26the Department, the Comptroller shall cause the orders to be

HB0216- 69 -LRB101 03001 HLH 48009 b
1drawn for the respective amounts in accordance with the
2directions contained in such certification.
3 In addition to the disbursement required by the preceding
4paragraph and in order to mitigate delays caused by
5distribution procedures, an allocation shall, if requested, be
6made within 10 days after January 14, 1991, and in November of
71991 and each year thereafter, to each municipality that
8received more than $500,000 during the preceding fiscal year,
9(July 1 through June 30) whether collected by the municipality
10or disbursed by the Department as required by this Section.
11Within 10 days after January 14, 1991, participating
12municipalities shall notify the Department in writing of their
13intent to participate. In addition, for the initial
14distribution, participating municipalities shall certify to
15the Department the amounts collected by the municipality for
16each month under its home rule occupation and service
17occupation tax during the period July 1, 1989 through June 30,
181990. The allocation within 10 days after January 14, 1991,
19shall be in an amount equal to the monthly average of these
20amounts, excluding the 2 months of highest receipts. Monthly
21average for the period of July 1, 1990 through June 30, 1991
22will be determined as follows: the amounts collected by the
23municipality under its home rule occupation and service
24occupation tax during the period of July 1, 1990 through
25September 30, 1990, plus amounts collected by the Department
26and paid to such municipality through June 30, 1991, excluding

HB0216- 70 -LRB101 03001 HLH 48009 b
1the 2 months of highest receipts. The monthly average for each
2subsequent period of July 1 through June 30 shall be an amount
3equal to the monthly distribution made to each such
4municipality under the preceding paragraph during this period,
5excluding the 2 months of highest receipts. The distribution
6made in November 1991 and each year thereafter under this
7paragraph and the preceding paragraph shall be reduced by the
8amount allocated and disbursed under this paragraph in the
9preceding period of July 1 through June 30. The Department
10shall prepare and certify to the Comptroller for disbursement
11the allocations made in accordance with this paragraph.
12 Nothing in this Section shall be construed to authorize a
13municipality to impose a tax upon the privilege of engaging in
14any business which under the constitution of the United States
15may not be made the subject of taxation by this State.
16 An ordinance or resolution imposing or discontinuing a tax
17hereunder or effecting a change in the rate thereof shall be
18adopted and a certified copy thereof filed with the Department
19on or before the first day of June, whereupon the Department
20shall proceed to administer and enforce this Section as of the
21first day of September next following such adoption and filing.
22Beginning January 1, 1992, an ordinance or resolution imposing
23or discontinuing the tax hereunder or effecting a change in the
24rate thereof shall be adopted and a certified copy thereof
25filed with the Department on or before the first day of July,
26whereupon the Department shall proceed to administer and

HB0216- 71 -LRB101 03001 HLH 48009 b
1enforce this Section as of the first day of October next
2following such adoption and filing. Beginning January 1, 1993,
3an ordinance or resolution imposing or discontinuing the tax
4hereunder or effecting a change in the rate thereof shall be
5adopted and a certified copy thereof filed with the Department
6on or before the first day of October, whereupon the Department
7shall proceed to administer and enforce this Section as of the
8first day of January next following such adoption and filing.
9However, a municipality located in a county with a population
10in excess of 3,000,000 that elected to become a home rule unit
11at the general primary election in 1994 may adopt an ordinance
12or resolution imposing the tax under this Section and file a
13certified copy of the ordinance or resolution with the
14Department on or before July 1, 1994. The Department shall then
15proceed to administer and enforce this Section as of October 1,
161994. Beginning April 1, 1998, an ordinance or resolution
17imposing or discontinuing the tax hereunder or effecting a
18change in the rate thereof shall either (i) be adopted and a
19certified copy thereof filed with the Department on or before
20the first day of April, whereupon the Department shall proceed
21to administer and enforce this Section as of the first day of
22July next following the adoption and filing; or (ii) be adopted
23and a certified copy thereof filed with the Department on or
24before the first day of October, whereupon the Department shall
25proceed to administer and enforce this Section as of the first
26day of January next following the adoption and filing.

HB0216- 72 -LRB101 03001 HLH 48009 b
1 Any unobligated balance remaining in the Municipal
2Retailers' Occupation Tax Fund on December 31, 1989, which fund
3was abolished by Public Act 85-1135, and all receipts of
4municipal tax as a result of audits of liability periods prior
5to January 1, 1990, shall be paid into the Local Government Tax
6Fund, for distribution as provided by this Section prior to the
7enactment of Public Act 85-1135. All receipts of municipal tax
8as a result of an assessment not arising from an audit, for
9liability periods prior to January 1, 1990, shall be paid into
10the Local Government Tax Fund for distribution before July 1,
111990, as provided by this Section prior to the enactment of
12Public Act 85-1135, and on and after July 1, 1990, all such
13receipts shall be distributed as provided in Section 6z-18 of
14the State Finance Act.
15 As used in this Section, "municipal" and "municipality"
16means a city, village or incorporated town, including an
17incorporated town which has superseded a civil township.
18 This Section shall be known and may be cited as the Home
19Rule Municipal Service Occupation Tax Act.
20(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
21 Section 20. The Metro-East Park and Recreation District Act
22is amended by changing Section 30 as follows:
23 (70 ILCS 1605/30)
24 Sec. 30. Taxes.

HB0216- 73 -LRB101 03001 HLH 48009 b
1 (a) The board shall impose a tax upon all persons engaged
2in the business of selling tangible personal property, other
3than personal property titled or registered with an agency of
4this State's government, at retail in the District on the gross
5receipts from the sales made in the course of business. This
6tax shall be imposed only at the rate of one-tenth of one per
7cent.
8 This additional tax may not be imposed on the sales 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 which has been prepared for immediate consumption) and
12prescription and non-prescription medicines, drugs, medical
13appliances, and insulin, urine testing materials, syringes,
14and needles used by diabetics. The tax imposed by the Board
15under this Section and all civil penalties that may be assessed
16as an incident of the tax shall be collected and enforced by
17the Department of Revenue. The certificate of registration that
18is issued by the Department to a retailer under the Retailers'
19Occupation Tax Act shall permit the retailer to engage in a
20business that is taxable without registering separately with
21the Department under an ordinance or resolution under this
22Section. The Department has full power to administer and
23enforce this Section, to collect all taxes and penalties due
24under this Section, to dispose of taxes and penalties so
25collected in the manner provided in this Section, and to
26determine all rights to credit memoranda arising on account of

HB0216- 74 -LRB101 03001 HLH 48009 b
1the erroneous payment of a tax or penalty under this Section.
2In the administration of and compliance with this Section, the
3Department and persons who are subject to this Section shall
4(i) have the same rights, remedies, privileges, immunities,
5powers, and duties, (ii) be subject to the same conditions,
6restrictions, limitations, penalties, and definitions of
7terms, and (iii) employ the same modes of procedure as are
8prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
91n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions contained
10in those Sections other than the State rate of tax), 2-12, 2-15
11through 2-70, 2a, 2b, 2c, 3 (except provisions relating to
12transaction returns and quarter monthly payments), 4, 5, 5a,
135b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
147, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation
15Tax Act and the Uniform Penalty and Interest Act as if those
16provisions were set forth in this Section.
17 Persons subject to any tax imposed under the authority
18granted in this Section may reimburse themselves for their
19sellers' tax liability by separately stating the tax as an
20additional charge, which charge may be stated in combination,
21in a single amount, with State tax which sellers are required
22to collect under the Use Tax Act, pursuant to such bracketed
23schedules as the Department may prescribe.
24 Whenever the Department determines that a refund should be
25made under this Section to a claimant instead of issuing a
26credit memorandum, the Department shall notify the State

HB0216- 75 -LRB101 03001 HLH 48009 b
1Comptroller, who shall cause the order to be drawn for the
2amount specified and to the person named in the notification
3from the Department. The refund shall be paid by the State
4Treasurer out of the State Metro-East Park and Recreation
5District Fund.
6 (b) If a tax has been imposed under subsection (a), a
7service occupation tax shall also be imposed at the same rate
8upon all persons engaged, in the District, in the business of
9making sales of service, who, as an incident to making those
10sales of service, transfer tangible personal property within
11the District as an incident to a sale of service. This tax may
12not be imposed on sales of food for human consumption that is
13to be consumed off the premises where it is sold (other than
14alcoholic beverages, soft drinks, and food prepared for
15immediate consumption) and prescription and non-prescription
16medicines, drugs, medical appliances, and insulin, urine
17testing materials, syringes, and needles used by diabetics. The
18tax imposed under this subsection and all civil penalties that
19may be assessed as an incident thereof shall be collected and
20enforced by the Department of Revenue. The Department has full
21power to administer and enforce this subsection; to collect all
22taxes and penalties due hereunder; to dispose of taxes and
23penalties so collected in the manner hereinafter provided; and
24to determine all rights to credit memoranda arising on account
25of the erroneous payment of tax or penalty hereunder. In the
26administration of, and compliance with this subsection, the

HB0216- 76 -LRB101 03001 HLH 48009 b
1Department and persons who are subject to this paragraph shall
2(i) have the same rights, remedies, privileges, immunities,
3powers, and duties, (ii) be subject to the same conditions,
4restrictions, limitations, penalties, exclusions, exemptions,
5and definitions of terms, and (iii) employ the same modes of
6procedure as are prescribed in Sections 2 (except that the
7reference to State in the definition of supplier maintaining a
8place of business in this State shall mean the District), 2a,
92b, 2c, 3 through 3-50 (in respect to all provisions therein
10other than the State rate of tax), 4 (except that the reference
11to the State shall be to the District), 5, 7, 8 (except that
12the jurisdiction to which the tax shall be a debt to the extent
13indicated in that Section 8 shall be the District), 9 (except
14as to the disposition of taxes and penalties collected), 10,
1511, 12 (except the reference therein to Section 2b of the
16Retailers' Occupation Tax Act), 13 (except that any reference
17to the State shall mean the District), Sections 15, 16, 17, 18,
1819 and 20 of the Service Occupation Tax Act and the Uniform
19Penalty and Interest Act, as fully as if those provisions were
20set forth herein.
21 Persons subject to any tax imposed under the authority
22granted in this subsection may reimburse themselves for their
23serviceman's tax liability by separately stating the tax as an
24additional charge, which charge may be stated in combination,
25in a single amount, with State tax that servicemen are
26authorized to collect under the Service Use Tax Act, in

HB0216- 77 -LRB101 03001 HLH 48009 b
1accordance with such bracket schedules as the Department may
2prescribe.
3 Whenever the Department determines that a refund should be
4made under this subsection to a claimant instead of issuing a
5credit memorandum, the Department shall notify the State
6Comptroller, who shall cause the warrant to be drawn for the
7amount specified, and to the person named, in the notification
8from the Department. The refund shall be paid by the State
9Treasurer out of the State Metro-East Park and Recreation
10District Fund.
11 Nothing in this subsection shall be construed to authorize
12the board to impose a tax upon the privilege of engaging in any
13business which under the Constitution of the United States may
14not be made the subject of taxation by the State.
15 (c) The Department shall immediately pay over to the State
16Treasurer, ex officio, as trustee, all taxes and penalties
17collected under this Section to be deposited into the State
18Metro-East Park and Recreation District Fund, which shall be an
19unappropriated trust fund held outside of the State treasury.
20 As soon as possible after the first day of each month,
21beginning January 1, 2011, upon certification of the Department
22of Revenue, the Comptroller shall order transferred, and the
23Treasurer shall transfer, to the STAR Bonds Revenue Fund the
24local sales tax increment, as defined in the Innovation
25Development and Economy Act, collected under this Section
26during the second preceding calendar month for sales within a

HB0216- 78 -LRB101 03001 HLH 48009 b
1STAR bond district. The Department shall make this
2certification only if the Metro East Park and Recreation
3District imposes a tax on real property as provided in the
4definition of "local sales taxes" under the Innovation
5Development and Economy Act.
6 After the monthly transfer to the STAR Bonds Revenue Fund,
7on or before the 25th day of each calendar month, the
8Department shall prepare and certify to the Comptroller the
9disbursement of stated sums of money pursuant to Section 35 of
10this Act to the District from which retailers have paid taxes
11or penalties to the Department during the second preceding
12calendar month. The amount to be paid to the District shall be
13the amount (not including credit memoranda) collected under
14this Section during the second preceding calendar month by the
15Department plus an amount the Department determines is
16necessary to offset any amounts that were erroneously paid to a
17different taxing body, and not including (i) an amount equal to
18the amount of refunds made during the second preceding calendar
19month by the Department on behalf of the District, (ii) any
20amount that the Department determines is necessary to offset
21any amounts that were payable to a different taxing body but
22were erroneously paid to the District, and (iii) any amounts
23that are transferred to the STAR Bonds Revenue Fund, and (iv)
241.5% of the remainder, which the Department shall transfer into
25the Tax Compliance and Administration Fund. The Department, at
26the time of each monthly disbursement to the District, shall

HB0216- 79 -LRB101 03001 HLH 48009 b
1prepare and certify to the State Comptroller the amount to be
2transferred into the Tax Compliance and Administration Fund
3under this subsection. Within 10 days after receipt by the
4Comptroller of the disbursement certification to the District
5and the Tax Compliance and Administration Fund provided for in
6this Section to be given to the Comptroller by the Department,
7the Comptroller shall cause the orders to be drawn for the
8respective amounts in accordance with directions contained in
9the certification.
10 (d) For the purpose of determining whether a tax authorized
11under this Section is applicable, a retail sale by a producer
12of coal or another mineral mined in Illinois is a sale at
13retail at the place where the coal or other mineral mined in
14Illinois is extracted from the earth. This paragraph does not
15apply to coal or another mineral when it is delivered or
16shipped by the seller to the purchaser at a point outside
17Illinois so that the sale is exempt under the United States
18Constitution as a sale in interstate or foreign commerce.
19 (e) Nothing in this Section shall be construed to authorize
20the board to impose a tax upon the privilege of engaging in any
21business that under the Constitution of the United States may
22not be made the subject of taxation by this State.
23 (f) An ordinance imposing a tax under this Section or an
24ordinance extending the imposition of a tax to an additional
25county or counties shall be certified by the board and filed
26with the Department of Revenue either (i) on or before the

HB0216- 80 -LRB101 03001 HLH 48009 b
1first day of April, whereupon the Department shall proceed to
2administer and enforce the tax as of the first day of July next
3following the filing; or (ii) on or before the first day of
4October, whereupon the Department shall proceed to administer
5and enforce the tax as of the first day of January next
6following the filing.
7 (g) When certifying the amount of a monthly disbursement to
8the District under this Section, the Department shall increase
9or decrease the amounts by an amount necessary to offset any
10misallocation of previous disbursements. The offset amount
11shall be the amount erroneously disbursed within the previous 6
12months from the time a misallocation is discovered.
13(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
14100-587, eff. 6-4-18.)
15 Section 25. The Local Mass Transit District Act is amended
16by changing Section 5.01 as follows:
17 (70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
18 Sec. 5.01. Metro East Mass Transit District; use and
19occupation taxes.
20 (a) The Board of Trustees of any Metro East Mass Transit
21District may, by ordinance adopted with the concurrence of
22two-thirds of the then trustees, impose throughout the District
23any or all of the taxes and fees provided in this Section. All
24taxes and fees imposed under this Section shall be used only

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1for public mass transportation systems, and the amount used to
2provide mass transit service to unserved areas of the District
3shall be in the same proportion to the total proceeds as the
4number of persons residing in the unserved areas is to the
5total population of the District. Except as otherwise provided
6in this Act, taxes imposed under this Section and civil
7penalties imposed incident thereto shall be collected and
8enforced by the State Department of Revenue. The Department
9shall have the power to administer and enforce the taxes and to
10determine all rights for refunds for erroneous payments of the
11taxes.
12 (b) The Board may impose a Metro East Mass Transit District
13Retailers' Occupation Tax upon all persons engaged in the
14business of selling tangible personal property at retail in the
15district at a rate of 1/4 of 1%, or as authorized under
16subsection (d-5) of this Section, of the gross receipts from
17the sales made in the course of such business within the
18district. The tax imposed under this Section and all civil
19penalties that may be assessed as an incident thereof shall be
20collected and enforced by the State Department of Revenue. The
21Department shall have full power to administer and enforce this
22Section; to collect all taxes and penalties so collected in the
23manner hereinafter provided; and to determine all rights to
24credit memoranda arising on account of the erroneous payment of
25tax or penalty hereunder. In the administration of, and
26compliance with, this Section, the Department and persons who

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1are subject to this Section shall have the same rights,
2remedies, privileges, immunities, powers and duties, and be
3subject to the same conditions, restrictions, limitations,
4penalties, exclusions, exemptions and definitions of terms and
5employ the same modes of procedure, as are prescribed in
6Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
7(in respect to all provisions therein other than the State rate
8of tax), 2c, 3 (except as to the disposition of taxes and
9penalties collected), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
105k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, 13, and 14 of
11the Retailers' Occupation Tax Act and Section 3-7 of the
12Uniform Penalty and Interest Act, as fully as if those
13provisions were set forth herein.
14 Persons subject to any tax imposed under the Section may
15reimburse themselves for their seller's tax liability
16hereunder by separately stating the tax as an additional
17charge, which charge may be stated in combination, in a single
18amount, with State taxes that sellers are required to collect
19under the Use Tax Act, in accordance with such bracket
20schedules as the Department may prescribe.
21 Whenever the Department determines that a refund should be
22made under this Section to a claimant instead of issuing a
23credit memorandum, the Department shall notify the State
24Comptroller, who shall cause the warrant to be drawn for the
25amount specified, and to the person named, in the notification
26from the Department. The refund shall be paid by the State

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1Treasurer out of the Metro East Mass Transit District tax fund
2established under paragraph (h) of this Section.
3 If a tax is imposed under this subsection (b), a tax shall
4also be imposed under subsections (c) and (d) of this Section.
5 For the purpose of determining whether a tax authorized
6under this Section is applicable, a retail sale, by a producer
7of coal or other mineral mined in Illinois, is a sale at retail
8at the place where the coal or other mineral mined in Illinois
9is extracted from the earth. This paragraph does not apply to
10coal or other mineral when it is delivered or shipped by the
11seller to the purchaser at a point outside Illinois so that the
12sale is exempt under the Federal Constitution as a sale in
13interstate or foreign commerce.
14 No tax shall be imposed or collected under this subsection
15on the sale of a motor vehicle in this State to a resident of
16another state if that motor vehicle will not be titled in this
17State.
18 Nothing in this Section shall be construed to authorize the
19Metro East Mass Transit District to impose a tax upon the
20privilege of engaging in any business which under the
21Constitution of the United States may not be made the subject
22of taxation by this State.
23 (c) If a tax has been imposed under subsection (b), a Metro
24East Mass Transit District Service Occupation Tax shall also be
25imposed upon all persons engaged, in the district, in the
26business of making sales of service, who, as an incident to

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1making those sales of service, transfer tangible personal
2property within the District, either in the form of tangible
3personal property or in the form of real estate as an incident
4to a sale of service. The tax rate shall be 1/4%, or as
5authorized under subsection (d-5) of this Section, of the
6selling price of tangible personal property so transferred
7within the district. The tax imposed under this paragraph and
8all civil penalties that may be assessed as an incident thereof
9shall be collected and enforced by the State Department of
10Revenue. The Department shall have full power to administer and
11enforce this paragraph; to collect all taxes and penalties due
12hereunder; to dispose of taxes and penalties so collected in
13the manner hereinafter provided; and to determine all rights to
14credit memoranda arising on account of the erroneous payment of
15tax or penalty hereunder. In the administration of, and
16compliance with this paragraph, the Department and persons who
17are subject to this paragraph shall have the same rights,
18remedies, privileges, immunities, powers and duties, and be
19subject to the same conditions, restrictions, limitations,
20penalties, exclusions, exemptions and definitions of terms and
21employ the same modes of procedure as are prescribed in
22Sections 1a-1, 2 (except that the reference to State in the
23definition of supplier maintaining a place of business in this
24State shall mean the Authority), 2a, 3 through 3-50 (in respect
25to all provisions therein other than the State rate of tax), 4
26(except that the reference to the State shall be to the

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1Authority), 5, 7, 8 (except that the jurisdiction to which the
2tax shall be a debt to the extent indicated in that Section 8
3shall be the District), 9 (except as to the disposition of
4taxes and penalties collected, and except that the returned
5merchandise credit for this tax may not be taken against any
6State tax), 10, 11, 12 (except the reference therein to Section
72b of the Retailers' Occupation Tax Act), 13 (except that any
8reference to the State shall mean the District), the first
9paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service
10Occupation Tax Act and Section 3-7 of the Uniform Penalty and
11Interest Act, as fully as if those provisions were set forth
12herein.
13 Persons subject to any tax imposed under the authority
14granted in this paragraph may reimburse themselves for their
15serviceman's tax liability hereunder by separately stating the
16tax as an additional charge, which charge may be stated in
17combination, in a single amount, with State tax that servicemen
18are authorized to collect under the Service Use Tax Act, in
19accordance with such bracket schedules as the Department may
20prescribe.
21 Whenever the Department determines that a refund should be
22made under this paragraph to a claimant instead of issuing a
23credit memorandum, the Department shall notify the State
24Comptroller, who shall cause the warrant to be drawn for the
25amount specified, and to the person named, in the notification
26from the Department. The refund shall be paid by the State

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1Treasurer out of the Metro East Mass Transit District tax fund
2established under paragraph (h) of this Section.
3 Nothing in this paragraph shall be construed to authorize
4the District to impose a tax upon the privilege of engaging in
5any business which under the Constitution of the United States
6may not be made the subject of taxation by the State.
7 (d) If a tax has been imposed under subsection (b), a Metro
8East Mass Transit District Use Tax shall also be imposed upon
9the privilege of using, in the district, any item of tangible
10personal property that is purchased outside the district at
11retail from a retailer, and that is titled or registered with
12an agency of this State's government, at a rate of 1/4%, or as
13authorized under subsection (d-5) of this Section, of the
14selling price of the tangible personal property within the
15District, as "selling price" is defined in the Use Tax Act. The
16tax shall be collected from persons whose Illinois address for
17titling or registration purposes is given as being in the
18District. The tax shall be collected by the Department of
19Revenue for the Metro East Mass Transit District. The tax must
20be paid to the State, or an exemption determination must be
21obtained from the Department of Revenue, before the title or
22certificate of registration for the property may be issued. The
23tax or proof of exemption may be transmitted to the Department
24by way of the State agency with which, or the State officer
25with whom, the tangible personal property must be titled or
26registered if the Department and the State agency or State

HB0216- 87 -LRB101 03001 HLH 48009 b
1officer determine that this procedure will expedite the
2processing of applications for title or registration.
3 The Department shall have full power to administer and
4enforce this paragraph; to collect all taxes, penalties and
5interest due hereunder; to dispose of taxes, penalties and
6interest so collected in the manner hereinafter provided; and
7to determine all rights to credit memoranda or refunds arising
8on account of the erroneous payment of tax, penalty or interest
9hereunder. In the administration of, and compliance with, this
10paragraph, the Department and persons who are subject to this
11paragraph shall have the same rights, remedies, privileges,
12immunities, powers and duties, and be subject to the same
13conditions, restrictions, limitations, penalties, exclusions,
14exemptions and definitions of terms and employ the same modes
15of procedure, as are prescribed in Sections 2 (except the
16definition of "retailer maintaining a place of business in this
17State"), 3 through 3-80 (except provisions pertaining to the
18State rate of tax, and except provisions concerning collection
19or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
2019 (except the portions pertaining to claims by retailers and
21except the last paragraph concerning refunds), 20, 21 and 22 of
22the Use Tax Act and Section 3-7 of the Uniform Penalty and
23Interest Act, that are not inconsistent with this paragraph, as
24fully as if those provisions were set forth herein.
25 Whenever the Department determines that a refund should be
26made under this paragraph to a claimant instead of issuing a

HB0216- 88 -LRB101 03001 HLH 48009 b
1credit memorandum, the Department shall notify the State
2Comptroller, who shall cause the order to be drawn for the
3amount specified, and to the person named, in the notification
4from the Department. The refund shall be paid by the State
5Treasurer out of the Metro East Mass Transit District tax fund
6established under paragraph (h) of this Section.
7 (d-5) (A) The county board of any county participating in
8the Metro East Mass Transit District may authorize, by
9ordinance, a referendum on the question of whether the tax
10rates for the Metro East Mass Transit District Retailers'
11Occupation Tax, the Metro East Mass Transit District Service
12Occupation Tax, and the Metro East Mass Transit District Use
13Tax for the District should be increased from 0.25% to 0.75%.
14Upon adopting the ordinance, the county board shall certify the
15proposition to the proper election officials who shall submit
16the proposition to the voters of the District at the next
17election, in accordance with the general election law.
18 The proposition shall be in substantially the following
19form:
20 Shall the tax rates for the Metro East Mass Transit
21 District Retailers' Occupation Tax, the Metro East Mass
22 Transit District Service Occupation Tax, and the Metro East
23 Mass Transit District Use Tax be increased from 0.25% to
24 0.75%?
25 (B) Two thousand five hundred electors of any Metro East
26Mass Transit District may petition the Chief Judge of the

HB0216- 89 -LRB101 03001 HLH 48009 b
1Circuit Court, or any judge of that Circuit designated by the
2Chief Judge, in which that District is located to cause to be
3submitted to a vote of the electors the question whether the
4tax rates for the Metro East Mass Transit District Retailers'
5Occupation Tax, the Metro East Mass Transit District Service
6Occupation Tax, and the Metro East Mass Transit District Use
7Tax for the District should be increased from 0.25% to 0.75%.
8 Upon submission of such petition the court shall set a date
9not less than 10 nor more than 30 days thereafter for a hearing
10on the sufficiency thereof. Notice of the filing of such
11petition and of such date shall be given in writing to the
12District and the County Clerk at least 7 days before the date
13of such hearing.
14 If such petition is found sufficient, the court shall enter
15an order to submit that proposition at the next election, in
16accordance with general election law.
17 The form of the petition shall be in substantially the
18following form: To the Circuit Court of the County of (name of
19county):
20 We, the undersigned electors of the (name of transit
21 district), respectfully petition your honor to submit to a
22 vote of the electors of (name of transit district) the
23 following proposition:
24 Shall the tax rates for the Metro East Mass Transit
25 District Retailers' Occupation Tax, the Metro East Mass
26 Transit District Service Occupation Tax, and the Metro East

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1 Mass Transit District Use Tax be increased from 0.25% to
2 0.75%?
3 Name Address, with Street and Number.
4..............................................................
5..............................................................
6 (C) The votes shall be recorded as "YES" or "NO". If a
7majority of all votes cast on the proposition are for the
8increase in the tax rates, the Metro East Mass Transit District
9shall begin imposing the increased rates in the District, and
10the Department of Revenue shall begin collecting the increased
11amounts, as provided under this Section. An ordinance imposing
12or discontinuing a tax hereunder or effecting a change in the
13rate thereof shall be adopted and a certified copy thereof
14filed with the Department on or before the first day of
15October, whereupon the Department shall proceed to administer
16and enforce this Section as of the first day of January next
17following the adoption and filing, or on or before the first
18day of April, whereupon the Department shall proceed to
19administer and enforce this Section as of the first day of July
20next following the adoption and filing.
21 (D) If the voters have approved a referendum under this
22subsection, before November 1, 1994, to increase the tax rate
23under this subsection, the Metro East Mass Transit District
24Board of Trustees may adopt by a majority vote an ordinance at
25any time before January 1, 1995 that excludes from the rate
26increase tangible personal property that is titled or

HB0216- 91 -LRB101 03001 HLH 48009 b
1registered with an agency of this State's government. The
2ordinance excluding titled or registered tangible personal
3property from the rate increase must be filed with the
4Department at least 15 days before its effective date. At any
5time after adopting an ordinance excluding from the rate
6increase tangible personal property that is titled or
7registered with an agency of this State's government, the Metro
8East Mass Transit District Board of Trustees may adopt an
9ordinance applying the rate increase to that tangible personal
10property. The ordinance shall be adopted, and a certified copy
11of that ordinance shall be filed with the Department, on or
12before October 1, whereupon the Department shall proceed to
13administer and enforce the rate increase against tangible
14personal property titled or registered with an agency of this
15State's government as of the following January 1. After
16December 31, 1995, any reimposed rate increase in effect under
17this subsection shall no longer apply to tangible personal
18property titled or registered with an agency of this State's
19government. Beginning January 1, 1996, the Board of Trustees of
20any Metro East Mass Transit District may never reimpose a
21previously excluded tax rate increase on tangible personal
22property titled or registered with an agency of this State's
23government. After July 1, 2004, if the voters have approved a
24referendum under this subsection to increase the tax rate under
25this subsection, the Metro East Mass Transit District Board of
26Trustees may adopt by a majority vote an ordinance that

HB0216- 92 -LRB101 03001 HLH 48009 b
1excludes from the rate increase tangible personal property that
2is titled or registered with an agency of this State's
3government. The ordinance excluding titled or registered
4tangible personal property from the rate increase shall be
5adopted, and a certified copy of that ordinance shall be filed
6with the Department on or before October 1, whereupon the
7Department shall administer and enforce this exclusion from the
8rate increase as of the following January 1, or on or before
9April 1, whereupon the Department shall administer and enforce
10this exclusion from the rate increase as of the following July
111. The Board of Trustees of any Metro East Mass Transit
12District may never reimpose a previously excluded tax rate
13increase on tangible personal property titled or registered
14with an agency of this State's government.
15 (d-6) If the Board of Trustees of any Metro East Mass
16Transit District has imposed a rate increase under subsection
17(d-5) and filed an ordinance with the Department of Revenue
18excluding titled property from the higher rate, then that Board
19may, by ordinance adopted with the concurrence of two-thirds of
20the then trustees, impose throughout the District a fee. The
21fee on the excluded property shall not exceed $20 per retail
22transaction or an amount equal to the amount of tax excluded,
23whichever is less, on tangible personal property that is titled
24or registered with an agency of this State's government.
25Beginning July 1, 2004, the fee shall apply only to titled
26property that is subject to either the Metro East Mass Transit

HB0216- 93 -LRB101 03001 HLH 48009 b
1District Retailers' Occupation Tax or the Metro East Mass
2Transit District Service Occupation Tax. No fee shall be
3imposed or collected under this subsection on the sale of a
4motor vehicle in this State to a resident of another state if
5that motor vehicle will not be titled in this State.
6 (d-7) Until June 30, 2004, if a fee has been imposed under
7subsection (d-6), a fee shall also be imposed upon the
8privilege of using, in the district, any item of tangible
9personal property that is titled or registered with any agency
10of this State's government, in an amount equal to the amount of
11the fee imposed under subsection (d-6).
12 (d-7.1) Beginning July 1, 2004, any fee imposed by the
13Board of Trustees of any Metro East Mass Transit District under
14subsection (d-6) and all civil penalties that may be assessed
15as an incident of the fees shall be collected and enforced by
16the State Department of Revenue. Reference to "taxes" in this
17Section shall be construed to apply to the administration,
18payment, and remittance of all fees under this Section. For
19purposes of any fee imposed under subsection (d-6), 4% of the
20fee, penalty, and interest received by the Department in the
21first 12 months that the fee is collected and enforced by the
22Department and 2% of the fee, penalty, and interest following
23the first 12 months shall be deposited into the Tax Compliance
24and Administration Fund and shall be used by the Department,
25subject to appropriation, to cover the costs of the Department.
26No retailers' discount shall apply to any fee imposed under

HB0216- 94 -LRB101 03001 HLH 48009 b
1subsection (d-6).
2 (d-8) No item of titled property shall be subject to both
3the higher rate approved by referendum, as authorized under
4subsection (d-5), and any fee imposed under subsection (d-6) or
5(d-7).
6 (d-9) (Blank).
7 (d-10) (Blank).
8 (e) A certificate of registration issued by the State
9Department of Revenue to a retailer under the Retailers'
10Occupation Tax Act or under the Service Occupation Tax Act
11shall permit the registrant to engage in a business that is
12taxed under the tax imposed under paragraphs (b), (c) or (d) of
13this Section and no additional registration shall be required
14under the tax. A certificate issued under the Use Tax Act or
15the Service Use Tax Act shall be applicable with regard to any
16tax imposed under paragraph (c) of this Section.
17 (f) (Blank).
18 (g) Any ordinance imposing or discontinuing any tax under
19this Section shall be adopted and a certified copy thereof
20filed with the Department on or before June 1, whereupon the
21Department of Revenue shall proceed to administer and enforce
22this Section on behalf of the Metro East Mass Transit District
23as of September 1 next following such adoption and filing.
24Beginning January 1, 1992, an ordinance or resolution imposing
25or discontinuing the tax hereunder shall be adopted and a
26certified copy thereof filed with the Department on or before

HB0216- 95 -LRB101 03001 HLH 48009 b
1the first day of July, whereupon the Department shall proceed
2to administer and enforce this Section as of the first day of
3October next following such adoption and filing. Beginning
4January 1, 1993, except as provided in subsection (d-5) of this
5Section, an ordinance or resolution imposing or discontinuing
6the tax hereunder shall be adopted and a certified copy thereof
7filed with the Department on or before the first day of
8October, whereupon the Department shall proceed to administer
9and enforce this Section as of the first day of January next
10following such adoption and filing, or, beginning January 1,
112004, on or before the first day of April, whereupon the
12Department shall proceed to administer and enforce this Section
13as of the first day of July next following the adoption and
14filing.
15 (h) Except as provided in subsection (d-7.1), the State
16Department of Revenue shall, upon collecting any taxes as
17provided in this Section, pay the taxes over to the State
18Treasurer as trustee for the District. The taxes shall be held
19in a trust fund outside the State Treasury.
20 As soon as possible after the first day of each month,
21beginning January 1, 2011, upon certification of the Department
22of Revenue, the Comptroller shall order transferred, and the
23Treasurer shall transfer, to the STAR Bonds Revenue Fund the
24local sales tax increment, as defined in the Innovation
25Development and Economy Act, collected under this Section
26during the second preceding calendar month for sales within a

HB0216- 96 -LRB101 03001 HLH 48009 b
1STAR bond district. The Department shall make this
2certification only if the local mass transit district imposes a
3tax on real property as provided in the definition of "local
4sales taxes" under the Innovation Development and Economy Act.
5 After the monthly transfer to the STAR Bonds Revenue Fund,
6on or before the 25th day of each calendar month, the State
7Department of Revenue shall prepare and certify to the
8Comptroller of the State of Illinois the amount to be paid to
9the District, which shall be the amount (not including credit
10memoranda) collected under this Section during the second
11preceding calendar month by the Department plus an amount the
12Department determines is necessary to offset any amounts that
13were erroneously paid to a different taxing body, and not
14including any amount equal to the amount of refunds made during
15the second preceding calendar month by the Department on behalf
16of the District, and not including any amount that the
17Department determines is necessary to offset any amounts that
18were payable to a different taxing body but were erroneously
19paid to the District, and less any amounts that are transferred
20to the STAR Bonds Revenue Fund, less 1.5% of the remainder,
21which the Department shall transfer into the Tax Compliance and
22Administration Fund. The Department, at the time of each
23monthly disbursement to the District, shall prepare and certify
24to the State Comptroller the amount to be transferred into the
25Tax Compliance and Administration Fund under this subsection.
26Within 10 days after receipt by the Comptroller of the

HB0216- 97 -LRB101 03001 HLH 48009 b
1certification of the amount to be paid to the District and the
2Tax Compliance and Administration Fund, the Comptroller shall
3cause an order to be drawn for payment for the amount in
4accordance with the direction in the certification.
5(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
6100-587, eff. 6-4-18.)
7 Section 30. The Regional Transportation Authority Act is
8amended by changing Section 4.03 as follows:
9 (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
10 Sec. 4.03. Taxes.
11 (a) In order to carry out any of the powers or purposes of
12the Authority, the Board may by ordinance adopted with the
13concurrence of 12 of the then Directors, impose throughout the
14metropolitan region any or all of the taxes provided in this
15Section. Except as otherwise provided in this Act, taxes
16imposed under this Section and civil penalties imposed incident
17thereto shall be collected and enforced by the State Department
18of Revenue. The Department shall have the power to administer
19and enforce the taxes and to determine all rights for refunds
20for erroneous payments of the taxes. Nothing in Public Act
2195-708 is intended to invalidate any taxes currently imposed by
22the Authority. The increased vote requirements to impose a tax
23shall only apply to actions taken after January 1, 2008 (the
24effective date of Public Act 95-708).

HB0216- 98 -LRB101 03001 HLH 48009 b
1 (b) The Board may impose a public transportation tax upon
2all persons engaged in the metropolitan region in the business
3of selling at retail motor fuel for operation of motor vehicles
4upon public highways. The tax shall be at a rate not to exceed
55% of the gross receipts from the sales of motor fuel in the
6course of the business. As used in this Act, the term "motor
7fuel" shall have the same meaning as in the Motor Fuel Tax Law.
8The Board may provide for details of the tax. The provisions of
9any tax shall conform, as closely as may be practicable, to the
10provisions of the Municipal Retailers Occupation Tax Act,
11including without limitation, conformity to penalties with
12respect to the tax imposed and as to the powers of the State
13Department of Revenue to promulgate and enforce rules and
14regulations relating to the administration and enforcement of
15the provisions of the tax imposed, except that reference in the
16Act to any municipality shall refer to the Authority and the
17tax shall be imposed only with regard to receipts from sales of
18motor fuel in the metropolitan region, at rates as limited by
19this Section.
20 (c) In connection with the tax imposed under paragraph (b)
21of this Section the Board may impose a tax upon the privilege
22of using in the metropolitan region motor fuel for the
23operation of a motor vehicle upon public highways, the tax to
24be at a rate not in excess of the rate of tax imposed under
25paragraph (b) of this Section. The Board may provide for
26details of the tax.

HB0216- 99 -LRB101 03001 HLH 48009 b
1 (d) The Board may impose a motor vehicle parking tax upon
2the privilege of parking motor vehicles at off-street parking
3facilities in the metropolitan region at which a fee is
4charged, and may provide for reasonable classifications in and
5exemptions to the tax, for administration and enforcement
6thereof and for civil penalties and refunds thereunder and may
7provide criminal penalties thereunder, the maximum penalties
8not to exceed the maximum criminal penalties provided in the
9Retailers' Occupation Tax Act. The Authority may collect and
10enforce the tax itself or by contract with any unit of local
11government. The State Department of Revenue shall have no
12responsibility for the collection and enforcement unless the
13Department agrees with the Authority to undertake the
14collection and enforcement. As used in this paragraph, the term
15"parking facility" means a parking area or structure having
16parking spaces for more than 2 vehicles at which motor vehicles
17are permitted to park in return for an hourly, daily, or other
18periodic fee, whether publicly or privately owned, but does not
19include parking spaces on a public street, the use of which is
20regulated by parking meters.
21 (e) The Board may impose a Regional Transportation
22Authority Retailers' Occupation Tax upon all persons engaged in
23the business of selling tangible personal property at retail in
24the metropolitan region. In Cook County the tax rate shall be
251.25% of the gross receipts from sales of food for human
26consumption that is to be consumed off the premises where it is

HB0216- 100 -LRB101 03001 HLH 48009 b
1sold (other than alcoholic beverages, soft drinks and food that
2has been prepared for immediate consumption) and prescription
3and nonprescription medicines, drugs, medical appliances and
4insulin, urine testing materials, syringes and needles used by
5diabetics, and 1% of the gross receipts from other taxable
6sales made in the course of that business. In DuPage, Kane,
7Lake, McHenry, and Will Counties, the tax rate shall be 0.75%
8of the gross receipts from all taxable sales made in the course
9of that business. The tax imposed under this Section and all
10civil penalties that may be assessed as an incident thereof
11shall be collected and enforced by the State Department of
12Revenue. The Department shall have full power to administer and
13enforce this Section; to collect all taxes and penalties so
14collected in the manner hereinafter provided; and to determine
15all rights to credit memoranda arising on account of the
16erroneous payment of tax or penalty hereunder. In the
17administration of, and compliance with this Section, the
18Department and persons who are subject to this Section shall
19have the same rights, remedies, privileges, immunities, powers
20and duties, and be subject to the same conditions,
21restrictions, limitations, penalties, exclusions, exemptions
22and definitions of terms, and employ the same modes of
23procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
241e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
25therein other than the State rate of tax), 2c, 3 (except as to
26the disposition of taxes and penalties collected), 4, 5, 5a,

HB0216- 101 -LRB101 03001 HLH 48009 b
15b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
27, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act
3and Section 3-7 of the Uniform Penalty and Interest Act, as
4fully as if those provisions were set forth herein.
5 Persons subject to any tax imposed under the authority
6granted in this Section may reimburse themselves for their
7seller's tax liability hereunder by separately stating the tax
8as an additional charge, which charge may be stated in
9combination in a single amount with State taxes that sellers
10are required to collect under the Use Tax Act, under any
11bracket schedules the Department may prescribe.
12 Whenever the Department determines that a refund should be
13made under this Section to a claimant instead of issuing a
14credit memorandum, the Department shall notify the State
15Comptroller, who shall cause the warrant to be drawn for the
16amount specified, and to the person named, in the notification
17from the Department. The refund shall be paid by the State
18Treasurer out of the Regional Transportation Authority tax fund
19established under paragraph (n) of this Section.
20 If a tax is imposed under this subsection (e), a tax shall
21also be imposed under subsections (f) and (g) of this Section.
22 For the purpose of determining whether a tax authorized
23under this Section is applicable, a retail sale by a producer
24of coal or other mineral mined in Illinois, is a sale at retail
25at the place where the coal or other mineral mined in Illinois
26is extracted from the earth. This paragraph does not apply to

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1coal or other mineral when it is delivered or shipped by the
2seller to the purchaser at a point outside Illinois so that the
3sale is exempt under the Federal Constitution as a sale in
4interstate or foreign commerce.
5 No tax shall be imposed or collected under this subsection
6on the sale of a motor vehicle in this State to a resident of
7another state if that motor vehicle will not be titled in this
8State.
9 Nothing in this Section shall be construed to authorize the
10Regional Transportation Authority to impose a tax upon the
11privilege of engaging in any business that under the
12Constitution of the United States may not be made the subject
13of taxation by this State.
14 (f) If a tax has been imposed under paragraph (e), a
15Regional Transportation Authority Service Occupation Tax shall
16also be imposed upon all persons engaged, in the metropolitan
17region in the business of making sales of service, who as an
18incident to making the sales of service, transfer tangible
19personal property within the metropolitan region, either in the
20form of tangible personal property or in the form of real
21estate as an incident to a sale of service. In Cook County, the
22tax rate shall be: (1) 1.25% of the serviceman's cost price of
23food prepared for immediate consumption and transferred
24incident to a sale of service subject to the service occupation
25tax by an entity licensed under the Hospital Licensing Act, the
26Nursing Home Care Act, the Specialized Mental Health

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1Rehabilitation Act of 2013, the ID/DD Community Care Act, or
2the MC/DD Act that is located in the metropolitan region; (2)
31.25% of the selling price of food for human consumption that
4is to be consumed off the premises where it is sold (other than
5alcoholic beverages, soft drinks and food that has been
6prepared for immediate consumption) and prescription and
7nonprescription medicines, drugs, medical appliances and
8insulin, urine testing materials, syringes and needles used by
9diabetics; and (3) 1% of the selling price from other taxable
10sales of tangible personal property transferred. In DuPage,
11Kane, Lake, McHenry and Will Counties the rate shall be 0.75%
12of the selling price of all tangible personal property
13transferred.
14 The tax imposed under this paragraph and all civil
15penalties that may be assessed as an incident thereof shall be
16collected and enforced by the State Department of Revenue. The
17Department shall have full power to administer and enforce this
18paragraph; to collect all taxes and penalties due hereunder; to
19dispose of taxes and penalties collected in the manner
20hereinafter provided; and to determine all rights to credit
21memoranda arising on account of the erroneous payment of tax or
22penalty hereunder. In the administration of and compliance with
23this paragraph, the Department and persons who are subject to
24this paragraph shall have the same rights, remedies,
25privileges, immunities, powers and duties, and be subject to
26the same conditions, restrictions, limitations, penalties,

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1exclusions, exemptions and definitions of terms, and employ the
2same modes of procedure, as are prescribed in Sections 1a-1, 2,
32a, 3 through 3-50 (in respect to all provisions therein other
4than the State rate of tax), 4 (except that the reference to
5the State shall be to the Authority), 5, 7, 8 (except that the
6jurisdiction to which the tax shall be a debt to the extent
7indicated in that Section 8 shall be the Authority), 9 (except
8as to the disposition of taxes and penalties collected, and
9except that the returned merchandise credit for this tax may
10not be taken against any State tax), 10, 11, 12 (except the
11reference therein to Section 2b of the Retailers' Occupation
12Tax Act), 13 (except that any reference to the State shall mean
13the Authority), the first paragraph of Section 15, 16, 17, 18,
1419 and 20 of the Service Occupation Tax Act and Section 3-7 of
15the Uniform Penalty and Interest Act, as fully as if those
16provisions were set forth herein.
17 Persons subject to any tax imposed under the authority
18granted in this paragraph may reimburse themselves for their
19serviceman's tax liability hereunder by separately stating the
20tax as an additional charge, that charge may be stated in
21combination in a single amount with State tax that servicemen
22are authorized to collect under the Service Use Tax Act, under
23any bracket schedules the Department may prescribe.
24 Whenever the Department determines that a refund should be
25made under this paragraph to a claimant instead of issuing a
26credit memorandum, the Department shall notify the State

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1Comptroller, who shall cause the warrant to be drawn for the
2amount specified, and to the person named in the notification
3from the Department. The refund shall be paid by the State
4Treasurer out of the Regional Transportation Authority tax fund
5established under paragraph (n) of this Section.
6 Nothing in this paragraph shall be construed to authorize
7the Authority to impose a tax upon the privilege of engaging in
8any business that under the Constitution of the United States
9may not be made the subject of taxation by the State.
10 (g) If a tax has been imposed under paragraph (e), a tax
11shall also be imposed upon the privilege of using in the
12metropolitan region, any item of tangible personal property
13that is purchased outside the metropolitan region at retail
14from a retailer, and that is titled or registered with an
15agency of this State's government. In Cook County the tax rate
16shall be 1% of the selling price of the tangible personal
17property, as "selling price" is defined in the Use Tax Act. In
18DuPage, Kane, Lake, McHenry and Will counties the tax rate
19shall be 0.75% of the selling price of the tangible personal
20property, as "selling price" is defined in the Use Tax Act. The
21tax shall be collected from persons whose Illinois address for
22titling or registration purposes is given as being in the
23metropolitan region. The tax shall be collected by the
24Department of Revenue for the Regional Transportation
25Authority. The tax must be paid to the State, or an exemption
26determination must be obtained from the Department of Revenue,

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1before the title or certificate of registration for the
2property may be issued. The tax or proof of exemption may be
3transmitted to the Department by way of the State agency with
4which, or the State officer with whom, the tangible personal
5property must be titled or registered if the Department and the
6State agency or State officer determine that this procedure
7will expedite the processing of applications for title or
8registration.
9 The Department shall have full power to administer and
10enforce this paragraph; to collect all taxes, penalties and
11interest due hereunder; to dispose of taxes, penalties and
12interest collected in the manner hereinafter provided; and to
13determine all rights to credit memoranda or refunds arising on
14account of the erroneous payment of tax, penalty or interest
15hereunder. In the administration of and compliance with this
16paragraph, the Department and persons who are subject to this
17paragraph shall have the same rights, remedies, privileges,
18immunities, powers and duties, and be subject to the same
19conditions, restrictions, limitations, penalties, exclusions,
20exemptions and definitions of terms and employ the same modes
21of procedure, as are prescribed in Sections 2 (except the
22definition of "retailer maintaining a place of business in this
23State"), 3 through 3-80 (except provisions pertaining to the
24State rate of tax, and except provisions concerning collection
25or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
2619 (except the portions pertaining to claims by retailers and

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1except the last paragraph concerning refunds), 20, 21 and 22 of
2the Use Tax Act, and are not inconsistent with this paragraph,
3as fully as if those provisions were set forth herein.
4 Whenever the Department determines that a refund should be
5made under this paragraph to a claimant instead of issuing a
6credit memorandum, the Department shall notify the State
7Comptroller, who shall cause the order to be drawn for the
8amount specified, and to the person named in the notification
9from the Department. The refund shall be paid by the State
10Treasurer out of the Regional Transportation Authority tax fund
11established under paragraph (n) of this Section.
12 (h) The Authority may impose a replacement vehicle tax of
13$50 on any passenger car as defined in Section 1-157 of the
14Illinois Vehicle Code purchased within the metropolitan region
15by or on behalf of an insurance company to replace a passenger
16car of an insured person in settlement of a total loss claim.
17The tax imposed may not become effective before the first day
18of the month following the passage of the ordinance imposing
19the tax and receipt of a certified copy of the ordinance by the
20Department of Revenue. The Department of Revenue shall collect
21the tax for the Authority in accordance with Sections 3-2002
22and 3-2003 of the Illinois Vehicle Code.
23 The Department shall immediately pay over to the State
24Treasurer, ex officio, as trustee, all taxes collected
25hereunder.
26 As soon as possible after the first day of each month,

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1beginning January 1, 2011, upon certification of the Department
2of Revenue, the Comptroller shall order transferred, and the
3Treasurer shall transfer, to the STAR Bonds Revenue Fund the
4local sales tax increment, as defined in the Innovation
5Development and Economy Act, collected under this Section
6during the second preceding calendar month for sales within a
7STAR bond district.
8 After the monthly transfer to the STAR Bonds Revenue Fund,
9on or before the 25th day of each calendar month, the
10Department shall prepare and certify to the Comptroller the
11disbursement of stated sums of money to the Authority. The
12amount to be paid to the Authority shall be the amount
13collected hereunder during the second preceding calendar month
14by the Department, less any amount determined by the Department
15to be necessary for the payment of refunds, and less any
16amounts that are transferred to the STAR Bonds Revenue Fund.
17Within 10 days after receipt by the Comptroller of the
18disbursement certification to the Authority provided for in
19this Section to be given to the Comptroller by the Department,
20the Comptroller shall cause the orders to be drawn for that
21amount in accordance with the directions contained in the
22certification.
23 (i) The Board may not impose any other taxes except as it
24may from time to time be authorized by law to impose.
25 (j) A certificate of registration issued by the State
26Department of Revenue to a retailer under the Retailers'

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1Occupation Tax Act or under the Service Occupation Tax Act
2shall permit the registrant to engage in a business that is
3taxed under the tax imposed under paragraphs (b), (e), (f) or
4(g) of this Section and no additional registration shall be
5required under the tax. A certificate issued under the Use Tax
6Act or the Service Use Tax Act shall be applicable with regard
7to any tax imposed under paragraph (c) of this Section.
8 (k) The provisions of any tax imposed under paragraph (c)
9of this Section shall conform as closely as may be practicable
10to the provisions of the Use Tax Act, including without
11limitation conformity as to penalties with respect to the tax
12imposed and as to the powers of the State Department of Revenue
13to promulgate and enforce rules and regulations relating to the
14administration and enforcement of the provisions of the tax
15imposed. The taxes shall be imposed only on use within the
16metropolitan region and at rates as provided in the paragraph.
17 (l) The Board in imposing any tax as provided in paragraphs
18(b) and (c) of this Section, shall, after seeking the advice of
19the State Department of Revenue, provide means for retailers,
20users or purchasers of motor fuel for purposes other than those
21with regard to which the taxes may be imposed as provided in
22those paragraphs to receive refunds of taxes improperly paid,
23which provisions may be at variance with the refund provisions
24as applicable under the Municipal Retailers Occupation Tax Act.
25The State Department of Revenue may provide for certificates of
26registration for users or purchasers of motor fuel for purposes

HB0216- 110 -LRB101 03001 HLH 48009 b
1other than those with regard to which taxes may be imposed as
2provided in paragraphs (b) and (c) of this Section to
3facilitate the reporting and nontaxability of the exempt sales
4or uses.
5 (m) Any ordinance imposing or discontinuing any tax under
6this Section shall be adopted and a certified copy thereof
7filed with the Department on or before June 1, whereupon the
8Department of Revenue shall proceed to administer and enforce
9this Section on behalf of the Regional Transportation Authority
10as of September 1 next following such adoption and filing.
11Beginning January 1, 1992, an ordinance or resolution imposing
12or discontinuing the tax hereunder shall be adopted and a
13certified copy thereof filed with the Department on or before
14the first day of July, whereupon the Department shall proceed
15to administer and enforce this Section as of the first day of
16October next following such adoption and filing. Beginning
17January 1, 1993, an ordinance or resolution imposing,
18increasing, decreasing, or discontinuing the tax hereunder
19shall be adopted and a certified copy thereof filed with the
20Department, whereupon the Department shall proceed to
21administer and enforce this Section as of the first day of the
22first month to occur not less than 60 days following such
23adoption and filing. Any ordinance or resolution of the
24Authority imposing a tax under this Section and in effect on
25August 1, 2007 shall remain in full force and effect and shall
26be administered by the Department of Revenue under the terms

HB0216- 111 -LRB101 03001 HLH 48009 b
1and conditions and rates of tax established by such ordinance
2or resolution until the Department begins administering and
3enforcing an increased tax under this Section as authorized by
4Public Act 95-708. The tax rates authorized by Public Act
595-708 are effective only if imposed by ordinance of the
6Authority.
7 (n) Except as otherwise provided in this subsection (n),
8the State Department of Revenue shall, upon collecting any
9taxes as provided in this Section, pay the taxes over to the
10State Treasurer as trustee for the Authority. The taxes shall
11be held in a trust fund outside the State Treasury. On or
12before the 25th day of each calendar month, the State
13Department of Revenue shall prepare and certify to the
14Comptroller of the State of Illinois and to the Authority (i)
15the amount of taxes collected in each County other than Cook
16County in the metropolitan region, (ii) the amount of taxes
17collected within the City of Chicago, and (iii) the amount
18collected in that portion of Cook County outside of Chicago,
19each amount less the amount necessary for the payment of
20refunds to taxpayers located in those areas described in items
21(i), (ii), and (iii), and less 1.5% of the remainder, which
22shall be transferred from the trust fund into the Tax
23Compliance and Administration Fund. The Department, at the time
24of each monthly disbursement to the Authority, shall prepare
25and certify to the State Comptroller the amount to be
26transferred into the Tax Compliance and Administration Fund

HB0216- 112 -LRB101 03001 HLH 48009 b
1under this subsection. Within 10 days after receipt by the
2Comptroller of the certification of the amounts, the
3Comptroller shall cause an order to be drawn for the transfer
4of the amount certified into the Tax Compliance and
5Administration Fund and the payment of two-thirds of the
6amounts certified in item (i) of this subsection to the
7Authority and one-third of the amounts certified in item (i) of
8this subsection to the respective counties other than Cook
9County and the amount certified in items (ii) and (iii) of this
10subsection to the Authority.
11 In addition to the disbursement required by the preceding
12paragraph, an allocation shall be made in July 1991 and each
13year thereafter to the Regional Transportation Authority. The
14allocation shall be made in an amount equal to the average
15monthly distribution during the preceding calendar year
16(excluding the 2 months of lowest receipts) and the allocation
17shall include the amount of average monthly distribution from
18the Regional Transportation Authority Occupation and Use Tax
19Replacement Fund. The distribution made in July 1992 and each
20year thereafter under this paragraph and the preceding
21paragraph shall be reduced by the amount allocated and
22disbursed under this paragraph in the preceding calendar year.
23The Department of Revenue shall prepare and certify to the
24Comptroller for disbursement the allocations made in
25accordance with this paragraph.
26 (o) Failure to adopt a budget ordinance or otherwise to

HB0216- 113 -LRB101 03001 HLH 48009 b
1comply with Section 4.01 of this Act or to adopt a Five-year
2Capital Program or otherwise to comply with paragraph (b) of
3Section 2.01 of this Act shall not affect the validity of any
4tax imposed by the Authority otherwise in conformity with law.
5 (p) At no time shall a public transportation tax or motor
6vehicle parking tax authorized under paragraphs (b), (c) and
7(d) of this Section be in effect at the same time as any
8retailers' occupation, use or service occupation tax
9authorized under paragraphs (e), (f) and (g) of this Section is
10in effect.
11 Any taxes imposed under the authority provided in
12paragraphs (b), (c) and (d) shall remain in effect only until
13the time as any tax authorized by paragraphs (e), (f) or (g) of
14this Section are imposed and becomes effective. Once any tax
15authorized by paragraphs (e), (f) or (g) is imposed the Board
16may not reimpose taxes as authorized in paragraphs (b), (c) and
17(d) of the Section unless any tax authorized by paragraphs (e),
18(f) or (g) of this Section becomes ineffective by means other
19than an ordinance of the Board.
20 (q) Any existing rights, remedies and obligations
21(including enforcement by the Regional Transportation
22Authority) arising under any tax imposed under paragraphs (b),
23(c) or (d) of this Section shall not be affected by the
24imposition of a tax under paragraphs (e), (f) or (g) of this
25Section.
26(Source: P.A. 99-180, eff. 7-29-15; 99-217, eff. 7-31-15;

HB0216- 114 -LRB101 03001 HLH 48009 b
199-642, eff. 7-28-16; 100-23, eff. 7-6-17; 100-587, eff.
26-4-18.)
3 Section 35. The Water Commission Act of 1985 is amended by
4changing Section 4 as follows:
5 (70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
6 Sec. 4. Taxes.
7 (a) The board of commissioners of any county water
8commission may, by ordinance, impose throughout the territory
9of the commission any or all of the taxes provided in this
10Section for its corporate purposes. However, no county water
11commission may impose any such tax unless the commission
12certifies the proposition of imposing the tax to the proper
13election officials, who shall submit the proposition to the
14voters residing in the territory at an election in accordance
15with the general election law, and the proposition has been
16approved by a majority of those voting on the proposition.
17 The proposition shall be in the form provided in Section 5
18or shall be substantially in the following form:
19-------------------------------------------------------------
20 Shall the (insert corporate
21name of county water commission) YES
22impose (state type of tax or ------------------------
23taxes to be imposed) at the NO
24rate of 1/4%?

HB0216- 115 -LRB101 03001 HLH 48009 b
1-------------------------------------------------------------
2 Taxes imposed under this Section and civil penalties
3imposed incident thereto shall be collected and enforced by the
4State Department of Revenue. The Department shall have the
5power to administer and enforce the taxes and to determine all
6rights for refunds for erroneous payments of the taxes.
7 (b) The board of commissioners may impose a County Water
8Commission Retailers' Occupation Tax upon all persons engaged
9in the business of selling tangible personal property at retail
10in the territory of the commission at a rate of 1/4% of the
11gross receipts from the sales made in the course of such
12business within the territory. The tax imposed under this
13paragraph and all civil penalties that may be assessed as an
14incident thereof shall be collected and enforced by the State
15Department of Revenue. The Department shall have full power to
16administer and enforce this paragraph; to collect all taxes and
17penalties due hereunder; to dispose of taxes and penalties so
18collected in the manner hereinafter provided; and to determine
19all rights to credit memoranda arising on account of the
20erroneous payment of tax or penalty hereunder. In the
21administration of, and compliance with, this paragraph, the
22Department and persons who are subject to this paragraph shall
23have the same rights, remedies, privileges, immunities, powers
24and duties, and be subject to the same conditions,
25restrictions, limitations, penalties, exclusions, exemptions
26and definitions of terms, and employ the same modes of

HB0216- 116 -LRB101 03001 HLH 48009 b
1procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
21e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
3therein other than the State rate of tax except that food for
4human consumption that is to be consumed off the premises where
5it is sold (other than alcoholic beverages, soft drinks, and
6food that has been prepared for immediate consumption) and
7prescription and nonprescription medicine, drugs, medical
8appliances and insulin, urine testing materials, syringes, and
9needles used by diabetics, for human use, shall not be subject
10to tax hereunder), 2c, 3 (except as to the disposition of taxes
11and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
125i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, and 13
13of the Retailers' Occupation Tax Act and Section 3-7 of the
14Uniform Penalty and Interest Act, as fully as if those
15provisions were set forth herein.
16 Persons subject to any tax imposed under the authority
17granted in this paragraph may reimburse themselves for their
18seller's tax liability hereunder by separately stating the tax
19as an additional charge, which charge may be stated in
20combination, in a single amount, with State taxes that sellers
21are required to collect under the Use Tax Act and under
22subsection (e) of Section 4.03 of the Regional Transportation
23Authority Act, in accordance with such bracket schedules as the
24Department may prescribe.
25 Whenever the Department determines that a refund should be
26made under this paragraph to a claimant instead of issuing a

HB0216- 117 -LRB101 03001 HLH 48009 b
1credit memorandum, the Department shall notify the State
2Comptroller, who shall cause the warrant to be drawn for the
3amount specified, and to the person named, in the notification
4from the Department. The refund shall be paid by the State
5Treasurer out of a county water commission tax fund established
6under subsection (g) of this Section.
7 For the purpose of determining whether a tax authorized
8under this paragraph is applicable, a retail sale by a producer
9of coal or other mineral mined in Illinois is a sale at retail
10at the place where the coal or other mineral mined in Illinois
11is extracted from the earth. This paragraph does not apply to
12coal or other mineral when it is delivered or shipped by the
13seller to the purchaser at a point outside Illinois so that the
14sale is exempt under the Federal Constitution as a sale in
15interstate or foreign commerce.
16 If a tax is imposed under this subsection (b), a tax shall
17also be imposed under subsections (c) and (d) of this Section.
18 No tax shall be imposed or collected under this subsection
19on the sale of a motor vehicle in this State to a resident of
20another state if that motor vehicle will not be titled in this
21State.
22 Nothing in this paragraph shall be construed to authorize a
23county water commission to impose a tax upon the privilege of
24engaging in any business which under the Constitution of the
25United States may not be made the subject of taxation by this
26State.

HB0216- 118 -LRB101 03001 HLH 48009 b
1 (c) If a tax has been imposed under subsection (b), a
2County Water Commission Service Occupation Tax shall also be
3imposed upon all persons engaged, in the territory of the
4commission, in the business of making sales of service, who, as
5an incident to making the sales of service, transfer tangible
6personal property within the territory. The tax rate shall be
71/4% of the selling price of tangible personal property so
8transferred within the territory. The tax imposed under this
9paragraph and all civil penalties that may be assessed as an
10incident thereof shall be collected and enforced by the State
11Department of Revenue. The Department shall have full power to
12administer and enforce this paragraph; to collect all taxes and
13penalties due hereunder; to dispose of taxes and penalties so
14collected in the manner hereinafter provided; and to determine
15all rights to credit memoranda arising on account of the
16erroneous payment of tax or penalty hereunder. In the
17administration of, and compliance with, this paragraph, the
18Department and persons who are subject to this paragraph shall
19have the same rights, remedies, privileges, immunities, powers
20and duties, and be subject to the same conditions,
21restrictions, limitations, penalties, exclusions, exemptions
22and definitions of terms, and employ the same modes of
23procedure, as are prescribed in Sections 1a-1, 2 (except that
24the reference to State in the definition of supplier
25maintaining a place of business in this State shall mean the
26territory of the commission), 2a, 3 through 3-50 (in respect to

HB0216- 119 -LRB101 03001 HLH 48009 b
1all provisions therein other than the State rate of tax except
2that food for human consumption that is to be consumed off the
3premises where it is sold (other than alcoholic beverages, soft
4drinks, and food that has been prepared for immediate
5consumption) and prescription and nonprescription medicines,
6drugs, medical appliances and insulin, urine testing
7materials, syringes, and needles used by diabetics, for human
8use, shall not be subject to tax hereunder), 4 (except that the
9reference to the State shall be to the territory of the
10commission), 5, 7, 8 (except that the jurisdiction to which the
11tax shall be a debt to the extent indicated in that Section 8
12shall be the commission), 9 (except as to the disposition of
13taxes and penalties collected and except that the returned
14merchandise credit for this tax may not be taken against any
15State tax), 10, 11, 12 (except the reference therein to Section
162b of the Retailers' Occupation Tax Act), 13 (except that any
17reference to the State shall mean the territory of the
18commission), the first paragraph of Section 15, 15.5, 16, 17,
1918, 19, and 20 of the Service Occupation Tax Act as fully as if
20those provisions were set forth herein.
21 Persons subject to any tax imposed under the authority
22granted in this paragraph may reimburse themselves for their
23serviceman's tax liability hereunder by separately stating the
24tax as an additional charge, which charge may be stated in
25combination, in a single amount, with State tax that servicemen
26are authorized to collect under the Service Use Tax Act, and

HB0216- 120 -LRB101 03001 HLH 48009 b
1any tax for which servicemen may be liable under subsection (f)
2of Section 4.03 of the Regional Transportation Authority Act,
3in accordance with such bracket schedules as the Department may
4prescribe.
5 Whenever the Department determines that a refund should be
6made under this paragraph to a claimant instead of issuing a
7credit memorandum, the Department shall notify the State
8Comptroller, who shall cause the warrant to be drawn for the
9amount specified, and to the person named, in the notification
10from the Department. The refund shall be paid by the State
11Treasurer out of a county water commission tax fund established
12under subsection (g) of this Section.
13 Nothing in this paragraph shall be construed to authorize a
14county water commission to impose a tax upon the privilege of
15engaging in any business which under the Constitution of the
16United States may not be made the subject of taxation by the
17State.
18 (d) If a tax has been imposed under subsection (b), a tax
19shall also be imposed upon the privilege of using, in the
20territory of the commission, any item of tangible personal
21property that is purchased outside the territory at retail from
22a retailer, and that is titled or registered with an agency of
23this State's government, at a rate of 1/4% of the selling price
24of the tangible personal property within the territory, as
25"selling price" is defined in the Use Tax Act. The tax shall be
26collected from persons whose Illinois address for titling or

HB0216- 121 -LRB101 03001 HLH 48009 b
1registration purposes is given as being in the territory. The
2tax shall be collected by the Department of Revenue for a
3county water commission. The tax must be paid to the State, or
4an exemption determination must be obtained from the Department
5of Revenue, before the title or certificate of registration for
6the property may be issued. The tax or proof of exemption may
7be transmitted to the Department by way of the State agency
8with which, or the State officer with whom, the tangible
9personal property must be titled or registered if the
10Department and the State agency or State officer determine that
11this procedure will expedite the processing of applications for
12title or registration.
13 The Department shall have full power to administer and
14enforce this paragraph; to collect all taxes, penalties, and
15interest due hereunder; to dispose of taxes, penalties, and
16interest so collected in the manner hereinafter provided; and
17to determine all rights to credit memoranda or refunds arising
18on account of the erroneous payment of tax, penalty, or
19interest hereunder. In the administration of and compliance
20with this paragraph, the Department and persons who are subject
21to this paragraph shall have the same rights, remedies,
22privileges, immunities, powers, and duties, and be subject to
23the same conditions, restrictions, limitations, penalties,
24exclusions, exemptions, and definitions of terms and employ the
25same modes of procedure, as are prescribed in Sections 2
26(except the definition of "retailer maintaining a place of

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1business in this State"), 3 through 3-80 (except provisions
2pertaining to the State rate of tax, and except provisions
3concerning collection or refunding of the tax by retailers, and
4except that food for human consumption that is to be consumed
5off the premises where it is sold (other than alcoholic
6beverages, soft drinks, and food that has been prepared for
7immediate consumption) and prescription and nonprescription
8medicines, drugs, medical appliances and insulin, urine
9testing materials, syringes, and needles used by diabetics, for
10human use, shall not be subject to tax hereunder), 4, 11, 12,
1112a, 14, 15, 19 (except the portions pertaining to claims by
12retailers and except the last paragraph concerning refunds),
1320, 21, and 22 of the Use Tax Act and Section 3-7 of the Uniform
14Penalty and Interest Act that are not inconsistent with this
15paragraph, as fully as if those provisions were set forth
16herein.
17 Whenever the Department determines that a refund should be
18made under this paragraph to a claimant instead of issuing a
19credit memorandum, the Department shall notify the State
20Comptroller, who shall cause the order to be drawn for the
21amount specified, and to the person named, in the notification
22from the Department. The refund shall be paid by the State
23Treasurer out of a county water commission tax fund established
24under subsection (g) of this Section.
25 (e) A certificate of registration issued by the State
26Department of Revenue to a retailer under the Retailers'

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1Occupation Tax Act or under the Service Occupation Tax Act
2shall permit the registrant to engage in a business that is
3taxed under the tax imposed under subsection (b), (c), or (d)
4of this Section and no additional registration shall be
5required under the tax. A certificate issued under the Use Tax
6Act or the Service Use Tax Act shall be applicable with regard
7to any tax imposed under subsection (c) of this Section.
8 (f) Any ordinance imposing or discontinuing any tax under
9this Section shall be adopted and a certified copy thereof
10filed with the Department on or before June 1, whereupon the
11Department of Revenue shall proceed to administer and enforce
12this Section on behalf of the county water commission as of
13September 1 next following the adoption and filing. Beginning
14January 1, 1992, an ordinance or resolution imposing or
15discontinuing the tax hereunder shall be adopted and a
16certified copy thereof filed with the Department on or before
17the first day of July, whereupon the Department shall proceed
18to administer and enforce this Section as of the first day of
19October next following such adoption and filing. Beginning
20January 1, 1993, an ordinance or resolution imposing or
21discontinuing the tax hereunder shall be adopted and a
22certified copy thereof filed with the Department on or before
23the first day of October, whereupon the Department shall
24proceed to administer and enforce this Section as of the first
25day of January next following such adoption and filing.
26 (g) The State Department of Revenue shall, upon collecting

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1any taxes as provided in this Section, pay the taxes over to
2the State Treasurer as trustee for the commission. The taxes
3shall be held in a trust fund outside the State Treasury.
4 As soon as possible after the first day of each month,
5beginning January 1, 2011, upon certification of the Department
6of Revenue, the Comptroller shall order transferred, and the
7Treasurer shall transfer, to the STAR Bonds Revenue Fund the
8local sales tax increment, as defined in the Innovation
9Development and Economy Act, collected under this Section
10during the second preceding calendar month for sales within a
11STAR bond district.
12 After the monthly transfer to the STAR Bonds Revenue Fund,
13on or before the 25th day of each calendar month, the State
14Department of Revenue shall prepare and certify to the
15Comptroller of the State of Illinois the amount to be paid to
16the commission, which shall be the amount (not including credit
17memoranda) collected under this Section during the second
18preceding calendar month by the Department plus an amount the
19Department determines is necessary to offset any amounts that
20were erroneously paid to a different taxing body, and not
21including any amount equal to the amount of refunds made during
22the second preceding calendar month by the Department on behalf
23of the commission, and not including any amount that the
24Department determines is necessary to offset any amounts that
25were payable to a different taxing body but were erroneously
26paid to the commission, and less any amounts that are

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1transferred to the STAR Bonds Revenue Fund, less 1.5% of the
2remainder, which shall be transferred into the Tax Compliance
3and Administration Fund. The Department, at the time of each
4monthly disbursement to the commission, shall prepare and
5certify to the State Comptroller the amount to be transferred
6into the Tax Compliance and Administration Fund under this
7subsection. Within 10 days after receipt by the Comptroller of
8the certification of the amount to be paid to the commission
9and the Tax Compliance and Administration Fund, the Comptroller
10shall cause an order to be drawn for the payment for the amount
11in accordance with the direction in the certification.
12 (h) Beginning June 1, 2016, any tax imposed pursuant to
13this Section may no longer be imposed or collected, unless a
14continuation of the tax is approved by the voters at a
15referendum as set forth in this Section.
16(Source: P.A. 99-217, eff. 7-31-15; 99-642, eff. 7-28-16;
17100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 100-863, eff.
188-14-18.)
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