Bill Text: IL HB1573 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the State Finance Act, Counties Code, Illinois Municipal Code, Metro-East Park and Recreation District Act, Local Mass Transit District Act, Regional Transportation Authority Act, and Water Commission Act of 1985. Provides that the amounts transferred into the Tax Compliance and Administration Fund shall be reduced from 1.5% to 1%. Effective July 1, 2019.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB1573 Detail]

Download: Illinois-2019-HB1573-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB1573 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, Counties Code, Illinois Municipal Code, Metro-East Park and Recreation District Act, Local Mass Transit District Act, Regional Transportation Authority Act, and Water Commission Act of 1985. Provides that the amounts transferred into the Tax Compliance and Administration Fund shall be reduced from 1.5% to 1%. Effective July 1, 2019.
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A BILL FOR
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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Finance Act is amended by changing
Section 6z-20 as follows:
(30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
Sec. 6z-20. County and Mass Transit District Fund. Of the
money received from the 6.25% general rate (and, beginning July
1, 2000 and through December 31, 2000, the 1.25% rate on motor
fuel and gasohol, and beginning on August 6, 2010 through
August 15, 2010, the 1.25% rate on sales tax holiday items) on
sales subject to taxation under the Retailers' Occupation Tax
Act and Service Occupation Tax Act and paid into the County and
Mass Transit District Fund, distribution to the Regional
Transportation Authority tax fund, created pursuant to Section
4.03 of the Regional Transportation Authority Act, for deposit
therein shall be made based upon the retail sales occurring in
a county having more than 3,000,000 inhabitants. The remainder
shall be distributed to each county having 3,000,000 or fewer
inhabitants based upon the retail sales occurring in each such
county.
For the purpose of determining allocation to the local
government unit, a retail sale by a producer of coal or other

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

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

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

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

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

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

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

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

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

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or other mineral when it is delivered or shipped by the seller
to the purchaser at a point outside Illinois so that the sale
is exempt under the United States Constitution as a sale in
interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
county to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following such adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the

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

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

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

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

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transportation purposes, shall (name of county) be
authorized to impose an increase on its share of local
sales taxes by (insert rate)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail."
The county board may also opt to establish a sunset
provision at which time the additional sales tax would
cease being collected, if not terminated earlier by a vote
of the county board. If the county board votes to include a
sunset provision, the proposition for transportation
purposes shall be in substantially the following form:
"To pay for road improvements and other transportation
purposes, shall (name of county) be authorized to impose an
increase on its share of local sales taxes by (insert rate)
for a period not to exceed (insert number of years)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail. If imposed,
the additional tax would cease being collected at the end
of (insert number of years), if not terminated earlier by a
vote of the county board."

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

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As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail. If imposed,
the additional tax would cease being collected at the end
of (insert number of years), if not terminated earlier by a
vote of the county board."
For purposes of this Section, "public facilities
purposes" means the acquisition, development,
construction, reconstruction, rehabilitation, improvement,
financing, architectural planning, and installation of
capital facilities consisting of buildings, structures,
and durable equipment and for the acquisition and
improvement of real property and interest in real property
required, or expected to be required, in connection with
the public facilities, for use by the county for the
furnishing of governmental services to its citizens,
including but not limited to museums and nursing homes.
The votes shall be recorded as "Yes" or "No".
If a majority of the electors voting on the proposition
vote in favor of it, the county may impose the tax. A county
may not submit more than one proposition authorized by this
Section to the electors at any one time.
This additional tax may not be imposed on the sales of food
for human consumption that is to be consumed off the premises

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

HB1573 - 20 - LRB101 00254 HLH 45258 b
1n, 2 through 2-70 (in respect to all provisions contained in
those Sections other than the State rate of tax), 2a, 2b, 2c, 3
(except provisions relating to transaction returns and quarter
monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13
of the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act as if those provisions were
set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
sellers' tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax which sellers are required
to collect under the Use Tax Act, pursuant to such bracketed
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the County Public Safety or Transportation
Retailers' Occupation Tax Fund.
(b) If a tax has been imposed under subsection (a), a
service occupation tax shall also be imposed at the same rate
upon all persons engaged, in the county, in the business of

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

HB1573 - 22 - LRB101 00254 HLH 45258 b
2c, 3 through 3-50 (in respect to all provisions therein other
than the State rate of tax), 4 (except that the reference to
the State shall be to the county), 5, 7, 8 (except that the
jurisdiction to which the tax shall be a debt to the extent
indicated in that Section 8 shall be the county), 9 (except as
to the disposition of taxes and penalties collected), 10, 11,
12 (except the reference therein to Section 2b of the
Retailers' Occupation Tax Act), 13 (except that any reference
to the State shall mean the county), Section 15, 16, 17, 18, 19
and 20 of the Service Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax that servicemen are
authorized to collect under the Service Use Tax Act, in
accordance with such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State

HB1573 - 23 - LRB101 00254 HLH 45258 b
Treasurer out of the County Public Safety or Transportation
Retailers' Occupation Fund.
Nothing in this subsection shall be construed to authorize
the county to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by the State.
(c) The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected under this Section to be deposited into the County
Public Safety or Transportation Retailers' Occupation Tax
Fund, which shall be an unappropriated trust fund held outside
of the State treasury.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the counties from which
retailers have paid taxes or penalties to the Department during
the second preceding calendar month. The amount to be paid to

HB1573 - 24 - LRB101 00254 HLH 45258 b
each county, and deposited by the county into its special fund
created for the purposes of this Section, shall be the amount
(not including credit memoranda) collected under this Section
during the second preceding calendar month by the Department
plus an amount the Department determines is necessary to offset
any amounts that were erroneously paid to a different taxing
body, and not including (i) an amount equal to the amount of
refunds made during the second preceding calendar month by the
Department on behalf of the county, (ii) any amount that the
Department determines is necessary to offset any amounts that
were payable to a different taxing body but were erroneously
paid to the county, (iii) any amounts that are transferred to
the STAR Bonds Revenue Fund, and (iv) 1% 1.5% of the remainder,
which shall be transferred into the Tax Compliance and
Administration Fund. The Department, at the time of each
monthly disbursement to the counties, shall prepare and certify
to the State Comptroller the amount to be transferred into the
Tax Compliance and Administration Fund under this subsection.
Within 10 days after receipt by the Comptroller of the
disbursement certification to the counties and the Tax
Compliance and Administration Fund provided for in this Section
to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with directions contained in
the certification.
In addition to the disbursement required by the preceding

HB1573 - 25 - LRB101 00254 HLH 45258 b
paragraph, an allocation shall be made in March of each year to
each county that received more than $500,000 in disbursements
under the preceding paragraph in the preceding calendar year.
The allocation shall be in an amount equal to the average
monthly distribution made to each such county under the
preceding paragraph during the preceding calendar year
(excluding the 2 months of highest receipts). The distribution
made in March of each year subsequent to the year in which an
allocation was made pursuant to this paragraph and the
preceding paragraph shall be reduced by the amount allocated
and disbursed under this paragraph in the preceding calendar
year. The Department shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.
A county may direct, by ordinance, that all or a portion of
the taxes and penalties collected under the Special County
Retailers' Occupation Tax For Public Safety or Transportation
be deposited into the Transportation Development Partnership
Trust Fund.
(d) For the purpose of determining the local governmental
unit whose tax is applicable, a retail sale by a producer of
coal or another mineral mined in Illinois is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or another mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the

HB1573 - 26 - LRB101 00254 HLH 45258 b
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
(e) Nothing in this Section shall be construed to authorize
a county to impose a tax upon the privilege of engaging in any
business that under the Constitution of the United States may
not be made the subject of taxation by this State.
(e-5) If a county imposes a tax under this Section, the
county board may, by ordinance, discontinue or lower the rate
of the tax. If the county board lowers the tax rate or
discontinues the tax, a referendum must be held in accordance
with subsection (a) of this Section in order to increase the
rate of the tax or to reimpose the discontinued tax.
(f) Beginning April 1, 1998 and through December 31, 2013,
the results of any election authorizing a proposition to impose
a tax under this Section or effecting a change in the rate of
tax, or any ordinance lowering the rate or discontinuing the
tax, shall be certified by the county clerk and filed with the
Illinois Department of Revenue either (i) on or before the
first day of April, whereupon the Department shall proceed to
administer and enforce the tax as of the first day of July next
following the filing; or (ii) on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce the tax as of the first day of January next
following the filing.
Beginning January 1, 2014, the results of any election
authorizing a proposition to impose a tax under this Section or

HB1573 - 27 - LRB101 00254 HLH 45258 b
effecting an increase in the rate of tax, along with the
ordinance adopted to impose the tax or increase the rate of the
tax, or any ordinance adopted to lower the rate or discontinue
the tax, shall be certified by the county clerk and filed with
the Illinois Department of Revenue either (i) on or before the
first day of May, whereupon the Department shall proceed to
administer and enforce the tax as of the first day of July next
following the adoption and filing; or (ii) on or before the
first day of October, whereupon the Department shall proceed to
administer and enforce the tax as of the first day of January
next following the adoption and filing.
(g) When certifying the amount of a monthly disbursement to
a county under this Section, the Department shall increase or
decrease the amounts by an amount necessary to offset any
miscalculation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a miscalculation is discovered.
(h) This Section may be cited as the "Special County
Occupation Tax For Public Safety, Public Facilities, or
Transportation Law".
(i) For purposes of this Section, "public safety" includes,
but is not limited to, crime prevention, detention, fire
fighting, police, medical, ambulance, or other emergency
services. The county may share tax proceeds received under this
Section for public safety purposes, including proceeds
received before August 4, 2009 (the effective date of Public

HB1573 - 28 - LRB101 00254 HLH 45258 b
Act 96-124), with any fire protection district located in the
county. For the purposes of this Section, "transportation"
includes, but is not limited to, the construction, maintenance,
operation, and improvement of public highways, any other
purpose for which a county may expend funds under the Illinois
Highway Code, and passenger rail transportation. For the
purposes of this Section, "public facilities purposes"
includes, but is not limited to, the acquisition, development,
construction, reconstruction, rehabilitation, improvement,
financing, architectural planning, and installation of capital
facilities consisting of buildings, structures, and durable
equipment and for the acquisition and improvement of real
property and interest in real property required, or expected to
be required, in connection with the public facilities, for use
by the county for the furnishing of governmental services to
its citizens, including but not limited to museums and nursing
homes.
(j) The Department may promulgate rules to implement Public
Act 95-1002 only to the extent necessary to apply the existing
rules for the Special County Retailers' Occupation Tax for
Public Safety to this new purpose for public facilities.
(Source: P.A. 99-4, eff. 5-31-15; 99-217, eff. 7-31-15; 99-642,
eff. 7-28-16; 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
(55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
Sec. 5-1007. Home Rule County Service Occupation Tax Law.

HB1573 - 29 - LRB101 00254 HLH 45258 b
The corporate authorities of a home rule county may impose a
tax upon all persons engaged, in such county, in the business
of making sales of service at the same rate of tax imposed
pursuant to Section 5-1006 of the selling price of all tangible
personal property transferred by such servicemen either in the
form of tangible personal property or in the form of real
estate as an incident to a sale of service. If imposed, such
tax shall only be imposed in 1/4% increments. On and after
September 1, 1991, this additional tax may not be imposed on
the sales of food for human consumption which is to be consumed
off the premises where it is sold (other than alcoholic
beverages, soft drinks and food which has been prepared for
immediate consumption) and prescription and nonprescription
medicines, drugs, medical appliances and insulin, urine
testing materials, syringes and needles used by diabetics. The
tax imposed by a home rule county pursuant to this Section and
all civil penalties that may be assessed as an incident thereof
shall be collected and enforced by the State Department of
Revenue. The certificate of registration which is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act or under the Service Occupation Tax Act shall permit such
registrant to engage in a business which is taxable under any
ordinance or resolution enacted pursuant to this Section
without registering separately with the Department under such
ordinance or resolution or under this Section. The Department
shall have full power to administer and enforce this Section;

HB1573 - 30 - LRB101 00254 HLH 45258 b
to collect all taxes and penalties due hereunder; to dispose of
taxes and penalties so collected in the manner hereinafter
provided; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
hereunder. In the administration of, and compliance with, this
Section the Department and persons who are subject to this
Section shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
respect to all provisions therein other than the State rate of
tax), 4 (except that the reference to the State shall be to the
taxing county), 5, 7, 8 (except that the jurisdiction to which
the tax shall be a debt to the extent indicated in that Section
8 shall be the taxing county), 9 (except as to the disposition
of taxes and penalties collected, and except that the returned
merchandise credit for this county tax may not be taken against
any State tax), 10, 11, 12 (except the reference therein to
Section 2b of the Retailers' Occupation Tax Act), 13 (except
that any reference to the State shall mean the taxing county),
the first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
Service Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth herein.
No tax may be imposed by a home rule county pursuant to

HB1573 - 31 - LRB101 00254 HLH 45258 b
this Section unless such county also imposes a tax at the same
rate pursuant to Section 5-1006.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their serviceman's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax which
servicemen are authorized to collect under the Service Use Tax
Act, pursuant to such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing credit
memorandum, the Department shall notify the State Comptroller,
who shall cause the order to be drawn for the amount specified,
and to the person named, in such notification from the
Department. Such refund shall be paid by the State Treasurer
out of the home rule county retailers' occupation tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex-officio, as trustee, all taxes and penalties
collected hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section

HB1573 - 32 - LRB101 00254 HLH 45258 b
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named counties, the
counties to be those from which suppliers and servicemen have
paid taxes or penalties hereunder to the Department during the
second preceding calendar month. The amount to be paid to each
county shall be the amount (not including credit memoranda)
collected hereunder during the second preceding calendar month
by the Department, and not including an amount equal to the
amount of refunds made during the second preceding calendar
month by the Department on behalf of such county, and not
including any amounts that are transferred to the STAR Bonds
Revenue Fund, less 1% 1.5% of the remainder, which the
Department shall transfer into the Tax Compliance and
Administration Fund. The Department, at the time of each
monthly disbursement to the counties, shall prepare and certify
to the State Comptroller the amount to be transferred into the
Tax Compliance and Administration Fund under this Section.
Within 10 days after receipt, by the Comptroller, of the
disbursement certification to the counties and the Tax
Compliance and Administration Fund provided for in this Section
to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the

HB1573 - 33 - LRB101 00254 HLH 45258 b
respective amounts in accordance with the directions contained
in such certification.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in each year to each
county which received more than $500,000 in disbursements under
the preceding paragraph in the preceding calendar year. The
allocation shall be in an amount equal to the average monthly
distribution made to each such county under the preceding
paragraph during the preceding calendar year (excluding the 2
months of highest receipts). The distribution made in March of
each year subsequent to the year in which an allocation was
made pursuant to this paragraph and the preceding paragraph
shall be reduced by the amount allocated and disbursed under
this paragraph in the preceding calendar year. The Department
shall prepare and certify to the Comptroller for disbursement
the allocations made in accordance with this paragraph.
Nothing in this Section shall be construed to authorize a
county to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following such adoption and filing.

HB1573 - 34 - LRB101 00254 HLH 45258 b
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following such adoption and filing.
Beginning April 1, 1998, an ordinance or resolution imposing or
discontinuing the tax hereunder or effecting a change in the
rate thereof shall either (i) be adopted and a certified copy
thereof filed with the Department on or before the first day of
April, whereupon the Department shall proceed to administer and
enforce this Section as of the first day of July next following
the adoption and filing; or (ii) be adopted and a certified
copy thereof filed with the Department on or before the first
day of October, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
January next following the adoption and filing.
This Section shall be known and may be cited as the Home
Rule County Service Occupation Tax Law.

HB1573 - 35 - LRB101 00254 HLH 45258 b
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
Section 15. The Illinois Municipal Code is amended by
changing Sections 8-11-1, 8-11-1.3, 8-11-1.4, 8-11-1.6,
8-11-1.7, and 8-11-5 as follows:
(65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
Act. The corporate authorities of a home rule municipality may
impose a tax upon all persons engaged in the business of
selling tangible personal property, other than an item of
tangible personal property titled or registered with an agency
of this State's government, at retail in the municipality on
the gross receipts from these sales made in the course of such
business. If imposed, the tax shall only be imposed in 1/4%
increments. On and after September 1, 1991, this additional tax
may not be imposed on the sales of food for human consumption
that is to be consumed off the premises where it is sold (other
than alcoholic beverages, soft drinks and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes and needles used by
diabetics. The tax imposed by a home rule municipality under
this Section and all civil penalties that may be assessed as an
incident of the tax shall be collected and enforced by the
State Department of Revenue. The certificate of registration

HB1573 - 36 - LRB101 00254 HLH 45258 b
that is issued by the Department to a retailer under the
Retailers' Occupation Tax Act shall permit the retailer to
engage in a business that is taxable under any ordinance or
resolution enacted pursuant to this Section without
registering separately with the Department under such
ordinance or resolution or under this Section. The Department
shall have full power to administer and enforce this Section;
to collect all taxes and penalties due hereunder; to dispose of
taxes and penalties so collected in the manner hereinafter
provided; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
hereunder. In the administration of, and compliance with, this
Section the Department and persons who are subject to this
Section shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k,
1m, 1n, 2 through 2-65 (in respect to all provisions therein
other than the State rate of tax), 2c, 3 (except as to the
disposition of taxes and penalties collected), 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8,
9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
No tax may be imposed by a home rule municipality under

HB1573 - 37 - LRB101 00254 HLH 45258 b
this Section unless the municipality also imposes a tax at the
same rate under Section 8-11-5 of this Act.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating that tax
as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the home rule municipal retailers' occupation
tax fund.
The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section

HB1573 - 38 - LRB101 00254 HLH 45258 b
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which retailers have paid
taxes or penalties hereunder to the Department during the
second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda) collected hereunder during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of such
municipality, and not including any amount that the Department
determines is necessary to offset any amounts that were payable
to a different taxing body but were erroneously paid to the
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1% 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund

HB1573 - 39 - LRB101 00254 HLH 45258 b
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
In addition to the disbursement required by the preceding
paragraph and in order to mitigate delays caused by
distribution procedures, an allocation shall, if requested, be
made within 10 days after January 14, 1991, and in November of
1991 and each year thereafter, to each municipality that
received more than $500,000 during the preceding fiscal year,
(July 1 through June 30) whether collected by the municipality
or disbursed by the Department as required by this Section.
Within 10 days after January 14, 1991, participating
municipalities shall notify the Department in writing of their
intent to participate. In addition, for the initial
distribution, participating municipalities shall certify to
the Department the amounts collected by the municipality for
each month under its home rule occupation and service
occupation tax during the period July 1, 1989 through June 30,
1990. The allocation within 10 days after January 14, 1991,
shall be in an amount equal to the monthly average of these
amounts, excluding the 2 months of highest receipts. The
monthly average for the period of July 1, 1990 through June 30,

HB1573 - 40 - LRB101 00254 HLH 45258 b
1991 will be determined as follows: the amounts collected by
the municipality under its home rule occupation and service
occupation tax during the period of July 1, 1990 through
September 30, 1990, plus amounts collected by the Department
and paid to such municipality through June 30, 1991, excluding
the 2 months of highest receipts. The monthly average for each
subsequent period of July 1 through June 30 shall be an amount
equal to the monthly distribution made to each such
municipality under the preceding paragraph during this period,
excluding the 2 months of highest receipts. The distribution
made in November 1991 and each year thereafter under this
paragraph and the preceding paragraph shall be reduced by the
amount allocated and disbursed under this paragraph in the
preceding period of July 1 through June 30. The Department
shall prepare and certify to the Comptroller for disbursement
the allocations made in accordance with this paragraph.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to coal
or other mineral when it is delivered or shipped by the seller
to the purchaser at a point outside Illinois so that the sale
is exempt under the United States Constitution as a sale in
interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a

HB1573 - 41 - LRB101 00254 HLH 45258 b
municipality to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following the adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following the adoption and filing.
However, a municipality located in a county with a population
in excess of 3,000,000 that elected to become a home rule unit
at the general primary election in 1994 may adopt an ordinance
or resolution imposing the tax under this Section and file a

HB1573 - 42 - LRB101 00254 HLH 45258 b
certified copy of the ordinance or resolution with the
Department on or before July 1, 1994. The Department shall then
proceed to administer and enforce this Section as of October 1,
1994. Beginning April 1, 1998, an ordinance or resolution
imposing or discontinuing the tax hereunder or effecting a
change in the rate thereof shall either (i) be adopted and a
certified copy thereof filed with the Department on or before
the first day of April, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
July next following the adoption and filing; or (ii) be adopted
and a certified copy thereof filed with the Department on or
before the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following the adoption and filing.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a misallocation is discovered.
Any unobligated balance remaining in the Municipal
Retailers' Occupation Tax Fund on December 31, 1989, which fund
was abolished by Public Act 85-1135, and all receipts of
municipal tax as a result of audits of liability periods prior
to January 1, 1990, shall be paid into the Local Government Tax
Fund for distribution as provided by this Section prior to the

HB1573 - 43 - LRB101 00254 HLH 45258 b
enactment of Public Act 85-1135. All receipts of municipal tax
as a result of an assessment not arising from an audit, for
liability periods prior to January 1, 1990, shall be paid into
the Local Government Tax Fund for distribution before July 1,
1990, as provided by this Section prior to the enactment of
Public Act 85-1135; and on and after July 1, 1990, all such
receipts shall be distributed as provided in Section 6z-18 of
the State Finance Act.
As used in this Section, "municipal" and "municipality"
means a city, village or incorporated town, including an
incorporated town that has superseded a civil township.
This Section shall be known and may be cited as the Home
Rule Municipal Retailers' Occupation Tax Act.
(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
100-587, eff. 6-4-18.)
(65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
Occupation Tax Act. The corporate authorities of a non-home
rule municipality may impose a tax upon all persons engaged in
the business of selling tangible personal property, other than
on an item of tangible personal property which is titled and
registered by an agency of this State's Government, at retail
in the municipality for expenditure on public infrastructure or
for property tax relief or both as defined in Section 8-11-1.2
if approved by referendum as provided in Section 8-11-1.1, of

HB1573 - 44 - LRB101 00254 HLH 45258 b
the gross receipts from such sales made in the course of such
business. If the tax is approved by referendum on or after July
14, 2010 (the effective date of Public Act 96-1057), the
corporate authorities of a non-home rule municipality may,
until December 31, 2020, use the proceeds of the tax for
expenditure on municipal operations, in addition to or in lieu
of any expenditure on public infrastructure or for property tax
relief. The tax imposed may not be more than 1% and may be
imposed only in 1/4% increments. The tax may not be imposed on
the sale of food for human consumption that is to be consumed
off the premises where it is sold (other than alcoholic
beverages, soft drinks, and food that has been prepared for
immediate consumption) and prescription and nonprescription
medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics. The
tax imposed by a municipality pursuant to this Section and all
civil penalties that may be assessed as an incident thereof
shall be collected and enforced by the State Department of
Revenue. The certificate of registration which is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act shall permit such retailer to engage in a business which is
taxable under any ordinance or resolution enacted pursuant to
this Section without registering separately with the
Department under such ordinance or resolution or under this
Section. The Department shall have full power to administer and
enforce this Section; to collect all taxes and penalties due

HB1573 - 45 - LRB101 00254 HLH 45258 b
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided, and to determine all rights to
credit memoranda, arising on account of the erroneous payment
of tax or penalty hereunder. In the administration of, and
compliance with, this Section, the Department and persons who
are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties and definitions of terms, and employ the same modes
of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
therein other than the State rate of tax), 2c, 3 (except as to
the disposition of taxes and penalties collected), 4, 5, 5a,
5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
7, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act
and Section 3-7 of the Uniform Penalty and Interest Act as
fully as if those provisions were set forth herein.
No municipality may impose a tax under this Section unless
the municipality also imposes a tax at the same rate under
Section 8-11-1.4 of this Code.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their seller's tax liability hereunder by separately stating
such tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such

HB1573 - 46 - LRB101 00254 HLH 45258 b
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such notification
from the Department. Such refund shall be paid by the State
Treasurer out of the non-home rule municipal retailers'
occupation tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which retailers have paid
taxes or penalties hereunder to the Department during the

HB1573 - 47 - LRB101 00254 HLH 45258 b
second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda) collected hereunder during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts which were
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of such
municipality, and not including any amount which the Department
determines is necessary to offset any amounts which were
payable to a different taxing body but were erroneously paid to
the municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1% 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification.
For the purpose of determining the local governmental unit

HB1573 - 48 - LRB101 00254 HLH 45258 b
whose tax is applicable, a retail sale, by a producer of coal
or other mineral mined in Illinois, is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to coal
or other mineral when it is delivered or shipped by the seller
to the purchaser at a point outside Illinois so that the sale
is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease such amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a misallocation is discovered.
The Department of Revenue shall implement this amendatory
Act of the 91st General Assembly so as to collect the tax on
and after January 1, 2002.
As used in this Section, "municipal" and "municipality"
means a city, village or incorporated town, including an
incorporated town which has superseded a civil township.
This Section shall be known and may be cited as the
"Non-Home Rule Municipal Retailers' Occupation Tax Act".

HB1573 - 49 - LRB101 00254 HLH 45258 b
(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
100-587, eff. 6-4-18.)
(65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
Tax Act. The corporate authorities of a non-home rule
municipality may impose a tax upon all persons engaged, in such
municipality, in the business of making sales of service for
expenditure on public infrastructure or for property tax relief
or both as defined in Section 8-11-1.2 if approved by
referendum as provided in Section 8-11-1.1, of the selling
price of all tangible personal property transferred by such
servicemen either in the form of tangible personal property or
in the form of real estate as an incident to a sale of service.
If the tax is approved by referendum on or after July 14, 2010
(the effective date of Public Act 96-1057), the corporate
authorities of a non-home rule municipality may, until December
31, 2020, use the proceeds of the tax for expenditure on
municipal operations, in addition to or in lieu of any
expenditure on public infrastructure or for property tax
relief. The tax imposed may not be more than 1% and may be
imposed only in 1/4% increments. The tax may not be imposed on
the sale of food for human consumption that is to be consumed
off the premises where it is sold (other than alcoholic
beverages, soft drinks, and food that has been prepared for
immediate consumption) and prescription and nonprescription

HB1573 - 50 - LRB101 00254 HLH 45258 b
medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics. The
tax imposed by a municipality pursuant to this Section and all
civil penalties that may be assessed as an incident thereof
shall be collected and enforced by the State Department of
Revenue. The certificate of registration which is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act or under the Service Occupation Tax Act shall permit such
registrant to engage in a business which is taxable under any
ordinance or resolution enacted pursuant to this Section
without registering separately with the Department under such
ordinance or resolution or under this Section. The Department
shall have full power to administer and enforce this Section;
to collect all taxes and penalties due hereunder; to dispose of
taxes and penalties so collected in the manner hereinafter
provided, and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
hereunder. In the administration of, and compliance with, this
Section the Department and persons who are subject to this
Section shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
respect to all provisions therein other than the State rate of
tax), 4 (except that the reference to the State shall be to the

HB1573 - 51 - LRB101 00254 HLH 45258 b
taxing municipality), 5, 7, 8 (except that the jurisdiction to
which the tax shall be a debt to the extent indicated in that
Section 8 shall be the taxing municipality), 9 (except as to
the disposition of taxes and penalties collected, and except
that the returned merchandise credit for this municipal tax may
not be taken against any State tax), 10, 11, 12 (except the
reference therein to Section 2b of the Retailers' Occupation
Tax Act), 13 (except that any reference to the State shall mean
the taxing municipality), the first paragraph of Section 15,
16, 17, 18, 19 and 20 of the Service Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
No municipality may impose a tax under this Section unless
the municipality also imposes a tax at the same rate under
Section 8-11-1.3 of this Code.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their serviceman's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax which
servicemen are authorized to collect under the Service Use Tax
Act, pursuant to such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing credit
memorandum, the Department shall notify the State Comptroller,

HB1573 - 52 - LRB101 00254 HLH 45258 b
who shall cause the order to be drawn for the amount specified,
and to the person named, in such notification from the
Department. Such refund shall be paid by the State Treasurer
out of the municipal retailers' occupation tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which suppliers and
servicemen have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda) collected hereunder during the
second preceding calendar month by the Department, and not
including an amount equal to the amount of refunds made during

HB1573 - 53 - LRB101 00254 HLH 45258 b
the second preceding calendar month by the Department on behalf
of such municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1% 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities, the General Revenue Fund, and the Tax
Compliance and Administration Fund provided for in this Section
to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in such certification.
The Department of Revenue shall implement this amendatory
Act of the 91st General Assembly so as to collect the tax on
and after January 1, 2002.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
As used in this Section, "municipal" or "municipality"
means or refers to a city, village or incorporated town,
including an incorporated town which has superseded a civil

HB1573 - 54 - LRB101 00254 HLH 45258 b
township.
This Section shall be known and may be cited as the
"Non-Home Rule Municipal Service Occupation Tax Act".
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
(65 ILCS 5/8-11-1.6)
Sec. 8-11-1.6. Non-home rule municipal retailers
occupation tax; municipalities between 20,000 and 25,000. The
corporate authorities of a non-home rule municipality with a
population of more than 20,000 but less than 25,000 that has,
prior to January 1, 1987, established a Redevelopment Project
Area that has been certified as a State Sales Tax Boundary and
has issued bonds or otherwise incurred indebtedness to pay for
costs in excess of $5,000,000, which is secured in part by a
tax increment allocation fund, in accordance with the
provisions of Division 11-74.4 of this Code may, by passage of
an ordinance, impose a tax upon all persons engaged in the
business of selling tangible personal property, other than on
an item of tangible personal property that is titled and
registered by an agency of this State's Government, at retail
in the municipality. This tax may not be imposed on the sales
of food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances and insulin, urine testing

HB1573 - 55 - LRB101 00254 HLH 45258 b
materials, syringes, and needles used by diabetics. If imposed,
the tax shall only be imposed in .25% increments of the gross
receipts from such sales made in the course of business. Any
tax imposed by a municipality under this Section and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. An
ordinance imposing a tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following such adoption and filing. The certificate of
registration that is issued by the Department to a retailer
under the Retailers' Occupation Tax Act shall permit the
retailer to engage in a business that is taxable under any
ordinance or resolution enacted under this Section without
registering separately with the Department under the ordinance
or resolution or under this Section. The Department shall have
full power to administer and enforce this Section, to collect
all taxes and penalties due hereunder, to dispose of taxes and
penalties so collected in the manner hereinafter provided, and
to determine all rights to credit memoranda, arising on account
of the erroneous payment of tax or penalty hereunder. In the
administration of, and compliance with this Section, the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities,

HB1573 - 56 - LRB101 00254 HLH 45258 b
powers, and duties, and be subject to the same conditions,
restrictions, limitations, penalties, and definitions of
terms, and employ the same modes of procedure, as are
prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
through 2-65 (in respect to all provisions therein other than
the State rate of tax), 2c, 3 (except as to the disposition of
taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
the Uniform Penalty and Interest Act as fully as if those
provisions were set forth herein.
A tax may not be imposed by a municipality under this
Section unless the municipality also imposes a tax at the same
rate under Section 8-11-1.7 of this Act.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating the tax
as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant, instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named in the notification

HB1573 - 57 - LRB101 00254 HLH 45258 b
from the Department. The refund shall be paid by the State
Treasurer out of the Non-Home Rule Municipal Retailers'
Occupation Tax Fund, which is hereby created.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which retailers have paid
taxes or penalties hereunder to the Department during the
second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda) collected hereunder during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were
erroneously paid to a different taxing body, and not including

HB1573 - 58 - LRB101 00254 HLH 45258 b
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of the
municipality, and not including any amount that the Department
determines is necessary to offset any amounts that were payable
to a different taxing body but were erroneously paid to the
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1% 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to coal
or other mineral when it is delivered or shipped by the seller
to the purchaser at a point outside Illinois so that the sale

HB1573 - 59 - LRB101 00254 HLH 45258 b
is exempt under the federal Constitution as a sale in
interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a misallocation is discovered.
As used in this Section, "municipal" and "municipality"
means a city, village, or incorporated town, including an
incorporated town that has superseded a civil township.
(Source: P.A. 99-217, eff. 7-31-15; 99-642, eff. 7-28-16;
100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 100-863, eff.
8-14-18.)
(65 ILCS 5/8-11-1.7)
Sec. 8-11-1.7. Non-home rule municipal service occupation
tax; municipalities between 20,000 and 25,000. The corporate
authorities of a non-home rule municipality with a population
of more than 20,000 but less than 25,000 as determined by the
last preceding decennial census that has, prior to January 1,
1987, established a Redevelopment Project Area that has been

HB1573 - 60 - LRB101 00254 HLH 45258 b
certified as a State Sales Tax Boundary and has issued bonds or
otherwise incurred indebtedness to pay for costs in excess of
$5,000,000, which is secured in part by a tax increment
allocation fund, in accordance with the provisions of Division
11-74.4 of this Code may, by passage of an ordinance, impose a
tax upon all persons engaged in the municipality in the
business of making sales of service. If imposed, the tax shall
only be imposed in .25% increments of the selling price of all
tangible personal property transferred by such servicemen
either in the form of tangible personal property or in the form
of real estate as an incident to a sale of service. This tax
may not be imposed on the sales of food for human consumption
that is to be consumed off the premises where it is sold (other
than alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes, and needles used by
diabetics. The tax imposed by a municipality under this Section
and all civil penalties that may be assessed as an incident
thereof shall be collected and enforced by the State Department
of Revenue. An ordinance imposing a tax hereunder or effecting
a change in the rate thereof shall be adopted and a certified
copy thereof filed with the Department on or before the first
day of October, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
January next following such adoption and filing. The

HB1573 - 61 - LRB101 00254 HLH 45258 b
certificate of registration that is issued by the Department to
a retailer under the Retailers' Occupation Tax Act or under the
Service Occupation Tax Act shall permit the registrant to
engage in a business that is taxable under any ordinance or
resolution enacted under this Section without registering
separately with the Department under the ordinance or
resolution or under this Section. The Department shall have
full power to administer and enforce this Section, to collect
all taxes and penalties due hereunder, to dispose of taxes and
penalties so collected in a manner hereinafter provided, and to
determine all rights to credit memoranda arising on account of
the erroneous payment of tax or penalty hereunder. In the
administration of and compliance with this Section, the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities,
powers, and duties, and be subject to the same conditions,
restrictions, limitations, penalties and definitions of terms,
and employ the same modes of procedure, as are prescribed in
Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
provisions therein other than the State rate of tax), 4 (except
that the reference to the State shall be to the taxing
municipality), 5, 7, 8 (except that the jurisdiction to which
the tax shall be a debt to the extent indicated in that Section
8 shall be the taxing municipality), 9 (except as to the
disposition of taxes and penalties collected, and except that
the returned merchandise credit for this municipal tax may not

HB1573 - 62 - LRB101 00254 HLH 45258 b
be taken against any State tax), 10, 11, 12, (except the
reference therein to Section 2b of the Retailers' Occupation
Tax Act), 13 (except that any reference to the State shall mean
the taxing municipality), the first paragraph of Sections 15,
16, 17, 18, 19, and 20 of the Service Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
A tax may not be imposed by a municipality under this
Section unless the municipality also imposes a tax at the same
rate under Section 8-11-1.6 of this Act.
Person subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
servicemen's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that servicemen
are authorized to collect under the Service Use Tax Act, under
such bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing credit
memorandum, the Department shall notify the State Comptroller,
who shall cause the order to be drawn for the amount specified,
and to the person named, in such notification from the
Department. The refund shall be paid by the State Treasurer out
of the Non-Home Rule Municipal Retailers' Occupation Tax Fund.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties

HB1573 - 63 - LRB101 00254 HLH 45258 b
collected hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which suppliers and
servicemen have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda) collected hereunder during the
second preceding calendar month by the Department, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department on behalf
of such municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1% 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the municipalities, shall

HB1573 - 64 - LRB101 00254 HLH 45258 b
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities, the Tax Compliance and Administration Fund,
and the General Revenue Fund, provided for in this Section to
be given to the Comptroller by the Department, the Comptroller
shall cause the orders to be drawn for the respective amounts
in accordance with the directions contained in the
certification.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a misallocation is discovered.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
100-863, eff. 8-14-18.)
(65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
Act. The corporate authorities of a home rule municipality may

HB1573 - 65 - LRB101 00254 HLH 45258 b
impose a tax upon all persons engaged, in such municipality, in
the business of making sales of service at the same rate of tax
imposed pursuant to Section 8-11-1, of the selling price of all
tangible personal property transferred by such servicemen
either in the form of tangible personal property or in the form
of real estate as an incident to a sale of service. If imposed,
such tax shall only be imposed in 1/4% increments. On and after
September 1, 1991, this additional tax may not be imposed on
the sales of food for human consumption which is to be consumed
off the premises where it is sold (other than alcoholic
beverages, soft drinks and food which has been prepared for
immediate consumption) and prescription and nonprescription
medicines, drugs, medical appliances and insulin, urine
testing materials, syringes and needles used by diabetics. The
tax imposed by a home rule municipality pursuant to this
Section and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the State
Department of Revenue. The certificate of registration which is
issued by the Department to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit such registrant to engage in a business which is
taxable under any ordinance or resolution enacted pursuant to
this Section without registering separately with the
Department under such ordinance or resolution or under this
Section. The Department shall have full power to administer and
enforce this Section; to collect all taxes and penalties due

HB1573 - 66 - LRB101 00254 HLH 45258 b
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided, and to determine all rights to
credit memoranda arising on account of the erroneous payment of
tax or penalty hereunder. In the administration of, and
compliance with, this Section the Department and persons who
are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties and definitions of terms, and employ the same modes
of procedure, as are prescribed in Sections 1a-1, 2, 2a, 3
through 3-50 (in respect to all provisions therein other than
the State rate of tax), 4 (except that the reference to the
State shall be to the taxing municipality), 5, 7, 8 (except
that the jurisdiction to which the tax shall be a debt to the
extent indicated in that Section 8 shall be the taxing
municipality), 9 (except as to the disposition of taxes and
penalties collected, and except that the returned merchandise
credit for this municipal tax may not be taken against any
State tax), 10, 11, 12 (except the reference therein to Section
2b of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State shall mean the taxing municipality), the
first paragraph of Section 15, 16, 17 (except that credit
memoranda issued hereunder may not be used to discharge any
State tax liability), 18, 19 and 20 of the Service Occupation
Tax Act and Section 3-7 of the Uniform Penalty and Interest
Act, as fully as if those provisions were set forth herein.

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No tax may be imposed by a home rule municipality pursuant
to this Section unless such municipality also imposes a tax at
the same rate pursuant to Section 8-11-1 of this Act.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their serviceman's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax which
servicemen are authorized to collect under the Service Use Tax
Act, pursuant to such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing credit
memorandum, the Department shall notify the State Comptroller,
who shall cause the order to be drawn for the amount specified,
and to the person named, in such notification from the
Department. Such refund shall be paid by the State Treasurer
out of the home rule municipal retailers' occupation tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex-officio, as trustee, all taxes and penalties
collected hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation

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Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which suppliers and
servicemen have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda) collected hereunder during the
second preceding calendar month by the Department, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department on behalf
of such municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1% 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by

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the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification.
In addition to the disbursement required by the preceding
paragraph and in order to mitigate delays caused by
distribution procedures, an allocation shall, if requested, be
made within 10 days after January 14, 1991, and in November of
1991 and each year thereafter, to each municipality that
received more than $500,000 during the preceding fiscal year,
(July 1 through June 30) whether collected by the municipality
or disbursed by the Department as required by this Section.
Within 10 days after January 14, 1991, participating
municipalities shall notify the Department in writing of their
intent to participate. In addition, for the initial
distribution, participating municipalities shall certify to
the Department the amounts collected by the municipality for
each month under its home rule occupation and service
occupation tax during the period July 1, 1989 through June 30,
1990. The allocation within 10 days after January 14, 1991,
shall be in an amount equal to the monthly average of these
amounts, excluding the 2 months of highest receipts. Monthly
average for the period of July 1, 1990 through June 30, 1991
will be determined as follows: the amounts collected by the
municipality under its home rule occupation and service
occupation tax during the period of July 1, 1990 through
September 30, 1990, plus amounts collected by the Department

HB1573 - 70 - LRB101 00254 HLH 45258 b
and paid to such municipality through June 30, 1991, excluding
the 2 months of highest receipts. The monthly average for each
subsequent period of July 1 through June 30 shall be an amount
equal to the monthly distribution made to each such
municipality under the preceding paragraph during this period,
excluding the 2 months of highest receipts. The distribution
made in November 1991 and each year thereafter under this
paragraph and the preceding paragraph shall be reduced by the
amount allocated and disbursed under this paragraph in the
preceding period of July 1 through June 30. The Department
shall prepare and certify to the Comptroller for disbursement
the allocations made in accordance with this paragraph.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following such adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of July,

HB1573 - 71 - LRB101 00254 HLH 45258 b
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following such adoption and filing.
However, a municipality located in a county with a population
in excess of 3,000,000 that elected to become a home rule unit
at the general primary election in 1994 may adopt an ordinance
or resolution imposing the tax under this Section and file a
certified copy of the ordinance or resolution with the
Department on or before July 1, 1994. The Department shall then
proceed to administer and enforce this Section as of October 1,
1994. Beginning April 1, 1998, an ordinance or resolution
imposing or discontinuing the tax hereunder or effecting a
change in the rate thereof shall either (i) be adopted and a
certified copy thereof filed with the Department on or before
the first day of April, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
July next following the adoption and filing; or (ii) be adopted
and a certified copy thereof filed with the Department on or
before the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first

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

HB1573 - 73 - LRB101 00254 HLH 45258 b
Sec. 30. Taxes.
(a) The board shall impose a tax upon all persons engaged
in the business of selling tangible personal property, other
than personal property titled or registered with an agency of
this State's government, at retail in the District on the gross
receipts from the sales made in the course of business. This
tax shall be imposed only at the rate of one-tenth of one per
cent.
This additional tax may not be imposed on the sales of food
for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks,
and food which has been prepared for immediate consumption) and
prescription and non-prescription medicines, drugs, medical
appliances, and insulin, urine testing materials, syringes,
and needles used by diabetics. The tax imposed by the Board
under this Section and all civil penalties that may be assessed
as an incident of the tax shall be collected and enforced by
the Department of Revenue. The certificate of registration that
is issued by the Department to a retailer under the Retailers'
Occupation Tax Act shall permit the retailer to engage in a
business that is taxable without registering separately with
the Department under an ordinance or resolution under this
Section. The Department has full power to administer and
enforce this Section, to collect all taxes and penalties due
under this Section, to dispose of taxes and penalties so
collected in the manner provided in this Section, and to

HB1573 - 74 - LRB101 00254 HLH 45258 b
determine all rights to credit memoranda arising on account of
the erroneous payment of a tax or penalty under this Section.
In the administration of and compliance with this Section, the
Department and persons who are subject to this Section shall
(i) have the same rights, remedies, privileges, immunities,
powers, and duties, (ii) be subject to the same conditions,
restrictions, limitations, penalties, and definitions of
terms, and (iii) employ the same modes of procedure as are
prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
1n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions contained
in those Sections other than the State rate of tax), 2-12, 2-15
through 2-70, 2a, 2b, 2c, 3 (except provisions relating to
transaction returns and quarter monthly payments), 4, 5, 5a,
5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation
Tax Act and the Uniform Penalty and Interest Act as if those
provisions were set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
sellers' tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax which sellers are required
to collect under the Use Tax Act, pursuant to such bracketed
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a

HB1573 - 75 - LRB101 00254 HLH 45258 b
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the State Metro-East Park and Recreation
District Fund.
(b) If a tax has been imposed under subsection (a), a
service occupation tax shall also be imposed at the same rate
upon all persons engaged, in the District, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the District as an incident to a sale of service. This tax may
not be imposed on sales of food for human consumption that is
to be consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food prepared for
immediate consumption) and prescription and non-prescription
medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics. The
tax imposed under this subsection and all civil penalties that
may be assessed as an incident thereof shall be collected and
enforced by the Department of Revenue. The Department has full
power to administer and enforce this subsection; to collect all
taxes and penalties due hereunder; to dispose of taxes and
penalties so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty hereunder. In the

HB1573 - 76 - LRB101 00254 HLH 45258 b
administration of, and compliance with this subsection, the
Department and persons who are subject to this paragraph shall
(i) have the same rights, remedies, privileges, immunities,
powers, and duties, (ii) be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions,
and definitions of terms, and (iii) employ the same modes of
procedure as are prescribed in Sections 2 (except that the
reference to State in the definition of supplier maintaining a
place of business in this State shall mean the District), 2a,
2b, 2c, 3 through 3-50 (in respect to all provisions therein
other than the State rate of tax), 4 (except that the reference
to the State shall be to the District), 5, 7, 8 (except that
the jurisdiction to which the tax shall be a debt to the extent
indicated in that Section 8 shall be the District), 9 (except
as to the disposition of taxes and penalties collected), 10,
11, 12 (except the reference therein to Section 2b of the
Retailers' Occupation Tax Act), 13 (except that any reference
to the State shall mean the District), Sections 15, 16, 17, 18,
19 and 20 of the Service Occupation Tax Act and the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax that servicemen are

HB1573 - 77 - LRB101 00254 HLH 45258 b
authorized to collect under the Service Use Tax Act, in
accordance with such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the State Metro-East Park and Recreation
District Fund.
Nothing in this subsection shall be construed to authorize
the board to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by the State.
(c) The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected under this Section to be deposited into the State
Metro-East Park and Recreation District Fund, which shall be an
unappropriated trust fund held outside of the State treasury.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section

HB1573 - 78 - LRB101 00254 HLH 45258 b
during the second preceding calendar month for sales within a
STAR bond district. The Department shall make this
certification only if the Metro East Park and Recreation
District imposes a tax on real property as provided in the
definition of "local sales taxes" under the Innovation
Development and Economy Act.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money pursuant to Section 35 of
this Act to the District from which retailers have paid taxes
or penalties to the Department during the second preceding
calendar month. The amount to be paid to the District shall be
the amount (not including credit memoranda) collected under
this Section during the second preceding calendar month by the
Department plus an amount the Department determines is
necessary to offset any amounts that were erroneously paid to a
different taxing body, and not including (i) an amount equal to
the amount of refunds made during the second preceding calendar
month by the Department on behalf of the District, (ii) any
amount that the Department determines is necessary to offset
any amounts that were payable to a different taxing body but
were erroneously paid to the District, (iii) any amounts that
are transferred to the STAR Bonds Revenue Fund, and (iv) 1%
1.5% of the remainder, which the Department shall transfer into
the Tax Compliance and Administration Fund. The Department, at

HB1573 - 79 - LRB101 00254 HLH 45258 b
the time of each monthly disbursement to the District, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this subsection. Within 10 days after receipt by the
Comptroller of the disbursement certification to the District
and the Tax Compliance and Administration Fund provided for in
this Section to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with directions contained in
the certification.
(d) For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale by a producer
of coal or another mineral mined in Illinois is a sale at
retail at the place where the coal or other mineral mined in
Illinois is extracted from the earth. This paragraph does not
apply to coal or another mineral when it is delivered or
shipped by the seller to the purchaser at a point outside
Illinois so that the sale is exempt under the United States
Constitution as a sale in interstate or foreign commerce.
(e) Nothing in this Section shall be construed to authorize
the board to impose a tax upon the privilege of engaging in any
business that under the Constitution of the United States may
not be made the subject of taxation by this State.
(f) An ordinance imposing a tax under this Section or an
ordinance extending the imposition of a tax to an additional
county or counties shall be certified by the board and filed

HB1573 - 80 - LRB101 00254 HLH 45258 b
with the Department of Revenue either (i) on or before the
first day of April, whereupon the Department shall proceed to
administer and enforce the tax as of the first day of July next
following the filing; or (ii) on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce the tax as of the first day of January next
following the filing.
(g) When certifying the amount of a monthly disbursement to
the District under this Section, the Department shall increase
or decrease the amounts by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a misallocation is discovered.
(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
100-587, eff. 6-4-18.)
Section 25. The Local Mass Transit District Act is amended
by changing Section 5.01 as follows:
(70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
Sec. 5.01. Metro East Mass Transit District; use and
occupation taxes.
(a) The Board of Trustees of any Metro East Mass Transit
District may, by ordinance adopted with the concurrence of
two-thirds of the then trustees, impose throughout the District
any or all of the taxes and fees provided in this Section. All

HB1573 - 81 - LRB101 00254 HLH 45258 b
taxes and fees imposed under this Section shall be used only
for public mass transportation systems, and the amount used to
provide mass transit service to unserved areas of the District
shall be in the same proportion to the total proceeds as the
number of persons residing in the unserved areas is to the
total population of the District. Except as otherwise provided
in this Act, taxes imposed under this Section and civil
penalties imposed incident thereto shall be collected and
enforced by the State Department of Revenue. The Department
shall have the power to administer and enforce the taxes and to
determine all rights for refunds for erroneous payments of the
taxes.
(b) The Board may impose a Metro East Mass Transit District
Retailers' Occupation Tax upon all persons engaged in the
business of selling tangible personal property at retail in the
district at a rate of 1/4 of 1%, or as authorized under
subsection (d-5) of this Section, of the gross receipts from
the sales made in the course of such business within the
district. The tax imposed under this Section and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce this
Section; to collect all taxes and penalties so collected in the
manner hereinafter provided; and to determine all rights to
credit memoranda arising on account of the erroneous payment of
tax or penalty hereunder. In the administration of, and

HB1573 - 82 - LRB101 00254 HLH 45258 b
compliance with, this Section, the Department and persons who
are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms and
employ the same modes of procedure, as are prescribed in
Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
(in respect to all provisions therein other than the State rate
of tax), 2c, 3 (except as to the disposition of taxes and
penalties collected), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, 13, and 14 of
the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
Persons subject to any tax imposed under the Section may
reimburse themselves for their seller's tax liability
hereunder by separately stating the tax as an additional
charge, which charge may be stated in combination, in a single
amount, with State taxes that sellers are required to collect
under the Use Tax Act, in accordance with such bracket
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification

HB1573 - 83 - LRB101 00254 HLH 45258 b
from the Department. The refund shall be paid by the State
Treasurer out of the Metro East Mass Transit District tax fund
established under paragraph (h) of this Section.
If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsections (c) and (d) of this Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale, by a producer
of coal or other mineral mined in Illinois, is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
No tax shall be imposed or collected under this subsection
on the sale of a motor vehicle in this State to a resident of
another state if that motor vehicle will not be titled in this
State.
Nothing in this Section shall be construed to authorize the
Metro East Mass Transit District to impose a tax upon the
privilege of engaging in any business which under the
Constitution of the United States may not be made the subject
of taxation by this State.
(c) If a tax has been imposed under subsection (b), a Metro
East Mass Transit District Service Occupation Tax shall also be
imposed upon all persons engaged, in the district, in the

HB1573 - 84 - LRB101 00254 HLH 45258 b
business of making sales of service, who, as an incident to
making those sales of service, transfer tangible personal
property within the District, either in the form of tangible
personal property or in the form of real estate as an incident
to a sale of service. The tax rate shall be 1/4%, or as
authorized under subsection (d-5) of this Section, of the
selling price of tangible personal property so transferred
within the district. The tax imposed under this paragraph and
all civil penalties that may be assessed as an incident thereof
shall be collected and enforced by the State Department of
Revenue. The Department shall have full power to administer and
enforce this paragraph; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided; and to determine all rights to
credit memoranda arising on account of the erroneous payment of
tax or penalty hereunder. In the administration of, and
compliance with this paragraph, the Department and persons who
are subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms and
employ the same modes of procedure as are prescribed in
Sections 1a-1, 2 (except that the reference to State in the
definition of supplier maintaining a place of business in this
State shall mean the Authority), 2a, 3 through 3-50 (in respect
to all provisions therein other than the State rate of tax), 4

HB1573 - 85 - LRB101 00254 HLH 45258 b
(except that the reference to the State shall be to the
Authority), 5, 7, 8 (except that the jurisdiction to which the
tax shall be a debt to the extent indicated in that Section 8
shall be the District), 9 (except as to the disposition of
taxes and penalties collected, and except that the returned
merchandise credit for this tax may not be taken against any
State tax), 10, 11, 12 (except the reference therein to Section
2b of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State shall mean the District), the first
paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service
Occupation Tax Act and Section 3-7 of the Uniform Penalty and
Interest Act, as fully as if those provisions were set forth
herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that servicemen
are authorized to collect under the Service Use Tax Act, in
accordance with such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification

HB1573 - 86 - LRB101 00254 HLH 45258 b
from the Department. The refund shall be paid by the State
Treasurer out of the Metro East Mass Transit District tax fund
established under paragraph (h) of this Section.
Nothing in this paragraph shall be construed to authorize
the District to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by the State.
(d) If a tax has been imposed under subsection (b), a Metro
East Mass Transit District Use Tax shall also be imposed upon
the privilege of using, in the district, any item of tangible
personal property that is purchased outside the district at
retail from a retailer, and that is titled or registered with
an agency of this State's government, at a rate of 1/4%, or as
authorized under subsection (d-5) of this Section, of the
selling price of the tangible personal property within the
District, as "selling price" is defined in the Use Tax Act. The
tax shall be collected from persons whose Illinois address for
titling or registration purposes is given as being in the
District. The tax shall be collected by the Department of
Revenue for the Metro East Mass Transit District. The tax must
be paid to the State, or an exemption determination must be
obtained from the Department of Revenue, before the title or
certificate of registration for the property may be issued. The
tax or proof of exemption may be transmitted to the Department
by way of the State agency with which, or the State officer
with whom, the tangible personal property must be titled or

HB1573 - 87 - LRB101 00254 HLH 45258 b
registered if the Department and the State agency or State
officer determine that this procedure will expedite the
processing of applications for title or registration.
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties and
interest due hereunder; to dispose of taxes, penalties and
interest so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda or refunds arising
on account of the erroneous payment of tax, penalty or interest
hereunder. In the administration of, and compliance with, this
paragraph, the Department and persons who are subject to this
paragraph shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties, exclusions,
exemptions and definitions of terms and employ the same modes
of procedure, as are prescribed in Sections 2 (except the
definition of "retailer maintaining a place of business in this
State"), 3 through 3-80 (except provisions pertaining to the
State rate of tax, and except provisions concerning collection
or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
19 (except the portions pertaining to claims by retailers and
except the last paragraph concerning refunds), 20, 21 and 22 of
the Use Tax Act and Section 3-7 of the Uniform Penalty and
Interest Act, that are not inconsistent with this paragraph, as
fully as if those provisions were set forth herein.
Whenever the Department determines that a refund should be

HB1573 - 88 - LRB101 00254 HLH 45258 b
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Metro East Mass Transit District tax fund
established under paragraph (h) of this Section.
(d-5) (A) The county board of any county participating in
the Metro East Mass Transit District may authorize, by
ordinance, a referendum on the question of whether the tax
rates for the Metro East Mass Transit District Retailers'
Occupation Tax, the Metro East Mass Transit District Service
Occupation Tax, and the Metro East Mass Transit District Use
Tax for the District should be increased from 0.25% to 0.75%.
Upon adopting the ordinance, the county board shall certify the
proposition to the proper election officials who shall submit
the proposition to the voters of the District at the next
election, in accordance with the general election law.
The proposition shall be in substantially the following
form:
Shall the tax rates for the Metro East Mass Transit
District Retailers' Occupation Tax, the Metro East Mass
Transit District Service Occupation Tax, and the Metro East
Mass Transit District Use Tax be increased from 0.25% to
0.75%?
(B) Two thousand five hundred electors of any Metro East

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Mass Transit District may petition the Chief Judge of the
Circuit Court, or any judge of that Circuit designated by the
Chief Judge, in which that District is located to cause to be
submitted to a vote of the electors the question whether the
tax rates for the Metro East Mass Transit District Retailers'
Occupation Tax, the Metro East Mass Transit District Service
Occupation Tax, and the Metro East Mass Transit District Use
Tax for the District should be increased from 0.25% to 0.75%.
Upon submission of such petition the court shall set a date
not less than 10 nor more than 30 days thereafter for a hearing
on the sufficiency thereof. Notice of the filing of such
petition and of such date shall be given in writing to the
District and the County Clerk at least 7 days before the date
of such hearing.
If such petition is found sufficient, the court shall enter
an order to submit that proposition at the next election, in
accordance with general election law.
The form of the petition shall be in substantially the
following form: To the Circuit Court of the County of (name of
county):
We, the undersigned electors of the (name of transit
district), respectfully petition your honor to submit to a
vote of the electors of (name of transit district) the
following proposition:
Shall the tax rates for the Metro East Mass Transit
District Retailers' Occupation Tax, the Metro East Mass

HB1573 - 90 - LRB101 00254 HLH 45258 b
Transit District Service Occupation Tax, and the Metro East
Mass Transit District Use Tax be increased from 0.25% to
0.75%?
Name Address, with Street and Number.
...................... ........................................
...................... ........................................
(C) The votes shall be recorded as "YES" or "NO". If a
majority of all votes cast on the proposition are for the
increase in the tax rates, the Metro East Mass Transit District
shall begin imposing the increased rates in the District, and
the Department of Revenue shall begin collecting the increased
amounts, as provided under this Section. An ordinance imposing
or discontinuing a tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following the adoption and filing, or on or before the first
day of April, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of July
next following the adoption and filing.
(D) If the voters have approved a referendum under this
subsection, before November 1, 1994, to increase the tax rate
under this subsection, the Metro East Mass Transit District
Board of Trustees may adopt by a majority vote an ordinance at
any time before January 1, 1995 that excludes from the rate

HB1573 - 91 - LRB101 00254 HLH 45258 b
increase tangible personal property that is titled or
registered with an agency of this State's government. The
ordinance excluding titled or registered tangible personal
property from the rate increase must be filed with the
Department at least 15 days before its effective date. At any
time after adopting an ordinance excluding from the rate
increase tangible personal property that is titled or
registered with an agency of this State's government, the Metro
East Mass Transit District Board of Trustees may adopt an
ordinance applying the rate increase to that tangible personal
property. The ordinance shall be adopted, and a certified copy
of that ordinance shall be filed with the Department, on or
before October 1, whereupon the Department shall proceed to
administer and enforce the rate increase against tangible
personal property titled or registered with an agency of this
State's government as of the following January 1. After
December 31, 1995, any reimposed rate increase in effect under
this subsection shall no longer apply to tangible personal
property titled or registered with an agency of this State's
government. Beginning January 1, 1996, the Board of Trustees of
any Metro East Mass Transit District may never reimpose a
previously excluded tax rate increase on tangible personal
property titled or registered with an agency of this State's
government. After July 1, 2004, if the voters have approved a
referendum under this subsection to increase the tax rate under
this subsection, the Metro East Mass Transit District Board of

HB1573 - 92 - LRB101 00254 HLH 45258 b
Trustees may adopt by a majority vote an ordinance that
excludes from the rate increase tangible personal property that
is titled or registered with an agency of this State's
government. The ordinance excluding titled or registered
tangible personal property from the rate increase shall be
adopted, and a certified copy of that ordinance shall be filed
with the Department on or before October 1, whereupon the
Department shall administer and enforce this exclusion from the
rate increase as of the following January 1, or on or before
April 1, whereupon the Department shall administer and enforce
this exclusion from the rate increase as of the following July
1. The Board of Trustees of any Metro East Mass Transit
District may never reimpose a previously excluded tax rate
increase on tangible personal property titled or registered
with an agency of this State's government.
(d-6) If the Board of Trustees of any Metro East Mass
Transit District has imposed a rate increase under subsection
(d-5) and filed an ordinance with the Department of Revenue
excluding titled property from the higher rate, then that Board
may, by ordinance adopted with the concurrence of two-thirds of
the then trustees, impose throughout the District a fee. The
fee on the excluded property shall not exceed $20 per retail
transaction or an amount equal to the amount of tax excluded,
whichever is less, on tangible personal property that is titled
or registered with an agency of this State's government.
Beginning July 1, 2004, the fee shall apply only to titled

HB1573 - 93 - LRB101 00254 HLH 45258 b
property that is subject to either the Metro East Mass Transit
District Retailers' Occupation Tax or the Metro East Mass
Transit District Service Occupation Tax. No fee shall be
imposed or collected under this subsection on the sale of a
motor vehicle in this State to a resident of another state if
that motor vehicle will not be titled in this State.
(d-7) Until June 30, 2004, if a fee has been imposed under
subsection (d-6), a fee shall also be imposed upon the
privilege of using, in the district, any item of tangible
personal property that is titled or registered with any agency
of this State's government, in an amount equal to the amount of
the fee imposed under subsection (d-6).
(d-7.1) Beginning July 1, 2004, any fee imposed by the
Board of Trustees of any Metro East Mass Transit District under
subsection (d-6) and all civil penalties that may be assessed
as an incident of the fees shall be collected and enforced by
the State Department of Revenue. Reference to "taxes" in this
Section shall be construed to apply to the administration,
payment, and remittance of all fees under this Section. For
purposes of any fee imposed under subsection (d-6), 4% of the
fee, penalty, and interest received by the Department in the
first 12 months that the fee is collected and enforced by the
Department and 2% of the fee, penalty, and interest following
the first 12 months shall be deposited into the Tax Compliance
and Administration Fund and shall be used by the Department,
subject to appropriation, to cover the costs of the Department.

HB1573 - 94 - LRB101 00254 HLH 45258 b
No retailers' discount shall apply to any fee imposed under
subsection (d-6).
(d-8) No item of titled property shall be subject to both
the higher rate approved by referendum, as authorized under
subsection (d-5), and any fee imposed under subsection (d-6) or
(d-7).
(d-9) (Blank).
(d-10) (Blank).
(e) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (c) or (d) of
this Section and no additional registration shall be required
under the tax. A certificate issued under the Use Tax Act or
the Service Use Tax Act shall be applicable with regard to any
tax imposed under paragraph (c) of this Section.
(f) (Blank).
(g) Any ordinance imposing or discontinuing any tax under
this Section shall be adopted and a certified copy thereof
filed with the Department on or before June 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the Metro East Mass Transit District
as of September 1 next following such adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder shall be adopted and a

HB1573 - 95 - LRB101 00254 HLH 45258 b
certified copy thereof filed with the Department on or before
the first day of July, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, except as provided in subsection (d-5) of this
Section, an ordinance or resolution imposing or discontinuing
the tax hereunder shall be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following such adoption and filing, or, beginning January 1,
2004, on or before the first day of April, whereupon the
Department shall proceed to administer and enforce this Section
as of the first day of July next following the adoption and
filing.
(h) Except as provided in subsection (d-7.1), the State
Department of Revenue shall, upon collecting any taxes as
provided in this Section, pay the taxes over to the State
Treasurer as trustee for the District. The taxes shall be held
in a trust fund outside the State Treasury.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section

HB1573 - 96 - LRB101 00254 HLH 45258 b
during the second preceding calendar month for sales within a
STAR bond district. The Department shall make this
certification only if the local mass transit district imposes a
tax on real property as provided in the definition of "local
sales taxes" under the Innovation Development and Economy Act.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the State
Department of Revenue shall prepare and certify to the
Comptroller of the State of Illinois the amount to be paid to
the District, which shall be the amount (not including credit
memoranda) collected under this Section during the second
preceding calendar month by the Department plus an amount the
Department determines is necessary to offset any amounts that
were erroneously paid to a different taxing body, and not
including any amount equal to the amount of refunds made during
the second preceding calendar month by the Department on behalf
of the District, and not including any amount that the
Department determines is necessary to offset any amounts that
were payable to a different taxing body but were erroneously
paid to the District, and less any amounts that are transferred
to the STAR Bonds Revenue Fund, less 1% 1.5% of the remainder,
which the Department shall transfer into the Tax Compliance and
Administration Fund. The Department, at the time of each
monthly disbursement to the District, shall prepare and certify
to the State Comptroller the amount to be transferred into the
Tax Compliance and Administration Fund under this subsection.

HB1573 - 97 - LRB101 00254 HLH 45258 b
Within 10 days after receipt by the Comptroller of the
certification of the amount to be paid to the District and the
Tax Compliance and Administration Fund, the Comptroller shall
cause an order to be drawn for payment for the amount in
accordance with the direction in the certification.
(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
100-587, eff. 6-4-18.)
Section 30. The Regional Transportation Authority Act is
amended by changing Section 4.03 as follows:
(70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
Sec. 4.03. Taxes.
(a) In order to carry out any of the powers or purposes of
the Authority, the Board may by ordinance adopted with the
concurrence of 12 of the then Directors, impose throughout the
metropolitan region any or all of the taxes provided in this
Section. Except as otherwise provided in this Act, taxes
imposed under this Section and civil penalties imposed incident
thereto shall be collected and enforced by the State Department
of Revenue. The Department shall have the power to administer
and enforce the taxes and to determine all rights for refunds
for erroneous payments of the taxes. Nothing in Public Act
95-708 is intended to invalidate any taxes currently imposed by
the Authority. The increased vote requirements to impose a tax
shall only apply to actions taken after January 1, 2008 (the

HB1573 - 98 - LRB101 00254 HLH 45258 b
effective date of Public Act 95-708).
(b) The Board may impose a public transportation tax upon
all persons engaged in the metropolitan region in the business
of selling at retail motor fuel for operation of motor vehicles
upon public highways. The tax shall be at a rate not to exceed
5% of the gross receipts from the sales of motor fuel in the
course of the business. As used in this Act, the term "motor
fuel" shall have the same meaning as in the Motor Fuel Tax Law.
The Board may provide for details of the tax. The provisions of
any tax shall conform, as closely as may be practicable, to the
provisions of the Municipal Retailers Occupation Tax Act,
including without limitation, conformity to penalties with
respect to the tax imposed and as to the powers of the State
Department of Revenue to promulgate and enforce rules and
regulations relating to the administration and enforcement of
the provisions of the tax imposed, except that reference in the
Act to any municipality shall refer to the Authority and the
tax shall be imposed only with regard to receipts from sales of
motor fuel in the metropolitan region, at rates as limited by
this Section.
(c) In connection with the tax imposed under paragraph (b)
of this Section the Board may impose a tax upon the privilege
of using in the metropolitan region motor fuel for the
operation of a motor vehicle upon public highways, the tax to
be at a rate not in excess of the rate of tax imposed under
paragraph (b) of this Section. The Board may provide for

HB1573 - 99 - LRB101 00254 HLH 45258 b
details of the tax.
(d) The Board may impose a motor vehicle parking tax upon
the privilege of parking motor vehicles at off-street parking
facilities in the metropolitan region at which a fee is
charged, and may provide for reasonable classifications in and
exemptions to the tax, for administration and enforcement
thereof and for civil penalties and refunds thereunder and may
provide criminal penalties thereunder, the maximum penalties
not to exceed the maximum criminal penalties provided in the
Retailers' Occupation Tax Act. The Authority may collect and
enforce the tax itself or by contract with any unit of local
government. The State Department of Revenue shall have no
responsibility for the collection and enforcement unless the
Department agrees with the Authority to undertake the
collection and enforcement. As used in this paragraph, the term
"parking facility" means a parking area or structure having
parking spaces for more than 2 vehicles at which motor vehicles
are permitted to park in return for an hourly, daily, or other
periodic fee, whether publicly or privately owned, but does not
include parking spaces on a public street, the use of which is
regulated by parking meters.
(e) The Board may impose a Regional Transportation
Authority Retailers' Occupation Tax upon all persons engaged in
the business of selling tangible personal property at retail in
the metropolitan region. In Cook County the tax rate shall be
1.25% of the gross receipts from sales of food for human

HB1573 - 100 - LRB101 00254 HLH 45258 b
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, soft drinks and food that
has been prepared for immediate consumption) and prescription
and nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes and needles used by
diabetics, and 1% of the gross receipts from other taxable
sales made in the course of that business. In DuPage, Kane,
Lake, McHenry, and Will Counties, the tax rate shall be 0.75%
of the gross receipts from all taxable sales made in the course
of that business. The tax imposed under this Section and all
civil penalties that may be assessed as an incident thereof
shall be collected and enforced by the State Department of
Revenue. The Department shall have full power to administer and
enforce this Section; to collect all taxes and penalties so
collected in the manner hereinafter provided; and to determine
all rights to credit memoranda arising on account of the
erroneous payment of tax or penalty hereunder. In the
administration of, and compliance with this Section, the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities, powers
and duties, and be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions
and definitions of terms, and employ the same modes of
procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
therein other than the State rate of tax), 2c, 3 (except as to

HB1573 - 101 - LRB101 00254 HLH 45258 b
the disposition of taxes and penalties collected), 4, 5, 5a,
5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
7, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act
and Section 3-7 of the Uniform Penalty and Interest Act, as
fully as if those provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating the tax
as an additional charge, which charge may be stated in
combination in a single amount with State taxes that sellers
are required to collect under the Use Tax Act, under any
bracket schedules the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Regional Transportation Authority tax fund
established under paragraph (n) of this Section.
If a tax is imposed under this subsection (e), a tax shall
also be imposed under subsections (f) and (g) of this Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale by a producer
of coal or other mineral mined in Illinois, is a sale at retail
at the place where the coal or other mineral mined in Illinois

HB1573 - 102 - LRB101 00254 HLH 45258 b
is extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
No tax shall be imposed or collected under this subsection
on the sale of a motor vehicle in this State to a resident of
another state if that motor vehicle will not be titled in this
State.
Nothing in this Section shall be construed to authorize the
Regional Transportation Authority to impose a tax upon the
privilege of engaging in any business that under the
Constitution of the United States may not be made the subject
of taxation by this State.
(f) If a tax has been imposed under paragraph (e), a
Regional Transportation Authority Service Occupation Tax shall
also be imposed upon all persons engaged, in the metropolitan
region in the business of making sales of service, who as an
incident to making the sales of service, transfer tangible
personal property within the metropolitan region, either in the
form of tangible personal property or in the form of real
estate as an incident to a sale of service. In Cook County, the
tax rate shall be: (1) 1.25% of the serviceman's cost price of
food prepared for immediate consumption and transferred
incident to a sale of service subject to the service occupation
tax by an entity licensed under the Hospital Licensing Act, the

HB1573 - 103 - LRB101 00254 HLH 45258 b
Nursing Home Care Act, the Specialized Mental Health
Rehabilitation Act of 2013, the ID/DD Community Care Act, or
the MC/DD Act that is located in the metropolitan region; (2)
1.25% of the selling price of food for human consumption that
is to be consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes and needles used by
diabetics; and (3) 1% of the selling price from other taxable
sales of tangible personal property transferred. In DuPage,
Kane, Lake, McHenry and Will Counties the rate shall be 0.75%
of the selling price of all tangible personal property
transferred.
The tax imposed under this paragraph and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce this
paragraph; to collect all taxes and penalties due hereunder; to
dispose of taxes and penalties collected in the manner
hereinafter provided; and to determine all rights to credit
memoranda arising on account of the erroneous payment of tax or
penalty hereunder. In the administration of and compliance with
this paragraph, the Department and persons who are subject to
this paragraph shall have the same rights, remedies,
privileges, immunities, powers and duties, and be subject to

HB1573 - 104 - LRB101 00254 HLH 45258 b
the same conditions, restrictions, limitations, penalties,
exclusions, exemptions and definitions of terms, and employ the
same modes of procedure, as are prescribed in Sections 1a-1, 2,
2a, 3 through 3-50 (in respect to all provisions therein other
than the State rate of tax), 4 (except that the reference to
the State shall be to the Authority), 5, 7, 8 (except that the
jurisdiction to which the tax shall be a debt to the extent
indicated in that Section 8 shall be the Authority), 9 (except
as to the disposition of taxes and penalties collected, and
except that the returned merchandise credit for this tax may
not be taken against any State tax), 10, 11, 12 (except the
reference therein to Section 2b of the Retailers' Occupation
Tax Act), 13 (except that any reference to the State shall mean
the Authority), the first paragraph of Section 15, 16, 17, 18,
19 and 20 of the Service Occupation Tax Act and Section 3-7 of
the Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, that charge may be stated in
combination in a single amount with State tax that servicemen
are authorized to collect under the Service Use Tax Act, under
any bracket schedules the Department may prescribe.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a

HB1573 - 105 - LRB101 00254 HLH 45258 b
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Regional Transportation Authority tax fund
established under paragraph (n) of this Section.
Nothing in this paragraph shall be construed to authorize
the Authority to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by the State.
(g) If a tax has been imposed under paragraph (e), a tax
shall also be imposed upon the privilege of using in the
metropolitan region, any item of tangible personal property
that is purchased outside the metropolitan region at retail
from a retailer, and that is titled or registered with an
agency of this State's government. In Cook County the tax rate
shall be 1% of the selling price of the tangible personal
property, as "selling price" is defined in the Use Tax Act. In
DuPage, Kane, Lake, McHenry and Will counties the tax rate
shall be 0.75% of the selling price of the tangible personal
property, as "selling price" is defined in the Use Tax Act. The
tax shall be collected from persons whose Illinois address for
titling or registration purposes is given as being in the
metropolitan region. The tax shall be collected by the
Department of Revenue for the Regional Transportation
Authority. The tax must be paid to the State, or an exemption

HB1573 - 106 - LRB101 00254 HLH 45258 b
determination must be obtained from the Department of Revenue,
before the title or certificate of registration for the
property may be issued. The tax or proof of exemption may be
transmitted to the Department by way of the State agency with
which, or the State officer with whom, the tangible personal
property must be titled or registered if the Department and the
State agency or State officer determine that this procedure
will expedite the processing of applications for title or
registration.
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties and
interest due hereunder; to dispose of taxes, penalties and
interest collected in the manner hereinafter provided; and to
determine all rights to credit memoranda or refunds arising on
account of the erroneous payment of tax, penalty or interest
hereunder. In the administration of and compliance with this
paragraph, the Department and persons who are subject to this
paragraph shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties, exclusions,
exemptions and definitions of terms and employ the same modes
of procedure, as are prescribed in Sections 2 (except the
definition of "retailer maintaining a place of business in this
State"), 3 through 3-80 (except provisions pertaining to the
State rate of tax, and except provisions concerning collection
or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,

HB1573 - 107 - LRB101 00254 HLH 45258 b
19 (except the portions pertaining to claims by retailers and
except the last paragraph concerning refunds), 20, 21 and 22 of
the Use Tax Act, and are not inconsistent with this paragraph,
as fully as if those provisions were set forth herein.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Regional Transportation Authority tax fund
established under paragraph (n) of this Section.
(h) The Authority may impose a replacement vehicle tax of
$50 on any passenger car as defined in Section 1-157 of the
Illinois Vehicle Code purchased within the metropolitan region
by or on behalf of an insurance company to replace a passenger
car of an insured person in settlement of a total loss claim.
The tax imposed may not become effective before the first day
of the month following the passage of the ordinance imposing
the tax and receipt of a certified copy of the ordinance by the
Department of Revenue. The Department of Revenue shall collect
the tax for the Authority in accordance with Sections 3-2002
and 3-2003 of the Illinois Vehicle Code.
The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes collected
hereunder.

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As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the Authority. The
amount to be paid to the Authority shall be the amount
collected hereunder during the second preceding calendar month
by the Department, less any amount determined by the Department
to be necessary for the payment of refunds, and less any
amounts that are transferred to the STAR Bonds Revenue Fund.
Within 10 days after receipt by the Comptroller of the
disbursement certification to the Authority provided for in
this Section to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for that
amount in accordance with the directions contained in the
certification.
(i) The Board may not impose any other taxes except as it
may from time to time be authorized by law to impose.
(j) A certificate of registration issued by the State

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Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (e), (f) or
(g) of this Section and no additional registration shall be
required under the tax. A certificate issued under the Use Tax
Act or the Service Use Tax Act shall be applicable with regard
to any tax imposed under paragraph (c) of this Section.
(k) The provisions of any tax imposed under paragraph (c)
of this Section shall conform as closely as may be practicable
to the provisions of the Use Tax Act, including without
limitation conformity as to penalties with respect to the tax
imposed and as to the powers of the State Department of Revenue
to promulgate and enforce rules and regulations relating to the
administration and enforcement of the provisions of the tax
imposed. The taxes shall be imposed only on use within the
metropolitan region and at rates as provided in the paragraph.
(l) The Board in imposing any tax as provided in paragraphs
(b) and (c) of this Section, shall, after seeking the advice of
the State Department of Revenue, provide means for retailers,
users or purchasers of motor fuel for purposes other than those
with regard to which the taxes may be imposed as provided in
those paragraphs to receive refunds of taxes improperly paid,
which provisions may be at variance with the refund provisions
as applicable under the Municipal Retailers Occupation Tax Act.
The State Department of Revenue may provide for certificates of

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registration for users or purchasers of motor fuel for purposes
other than those with regard to which taxes may be imposed as
provided in paragraphs (b) and (c) of this Section to
facilitate the reporting and nontaxability of the exempt sales
or uses.
(m) Any ordinance imposing or discontinuing any tax under
this Section shall be adopted and a certified copy thereof
filed with the Department on or before June 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the Regional Transportation Authority
as of September 1 next following such adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of July, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, an ordinance or resolution imposing,
increasing, decreasing, or discontinuing the tax hereunder
shall be adopted and a certified copy thereof filed with the
Department, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of the
first month to occur not less than 60 days following such
adoption and filing. Any ordinance or resolution of the
Authority imposing a tax under this Section and in effect on
August 1, 2007 shall remain in full force and effect and shall

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be administered by the Department of Revenue under the terms
and conditions and rates of tax established by such ordinance
or resolution until the Department begins administering and
enforcing an increased tax under this Section as authorized by
Public Act 95-708. The tax rates authorized by Public Act
95-708 are effective only if imposed by ordinance of the
Authority.
(n) Except as otherwise provided in this subsection (n),
the State Department of Revenue shall, upon collecting any
taxes as provided in this Section, pay the taxes over to the
State Treasurer as trustee for the Authority. The taxes shall
be held in a trust fund outside the State Treasury. On or
before the 25th day of each calendar month, the State
Department of Revenue shall prepare and certify to the
Comptroller of the State of Illinois and to the Authority (i)
the amount of taxes collected in each County other than Cook
County in the metropolitan region, (ii) the amount of taxes
collected within the City of Chicago, and (iii) the amount
collected in that portion of Cook County outside of Chicago,
each amount less the amount necessary for the payment of
refunds to taxpayers located in those areas described in items
(i), (ii), and (iii), and less 1% 1.5% of the remainder, which
shall be transferred from the trust fund into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the Authority, shall prepare
and certify to the State Comptroller the amount to be

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transferred into the Tax Compliance and Administration Fund
under this subsection. Within 10 days after receipt by the
Comptroller of the certification of the amounts, the
Comptroller shall cause an order to be drawn for the transfer
of the amount certified into the Tax Compliance and
Administration Fund and the payment of two-thirds of the
amounts certified in item (i) of this subsection to the
Authority and one-third of the amounts certified in item (i) of
this subsection to the respective counties other than Cook
County and the amount certified in items (ii) and (iii) of this
subsection to the Authority.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in July 1991 and each
year thereafter to the Regional Transportation Authority. The
allocation shall be made in an amount equal to the average
monthly distribution during the preceding calendar year
(excluding the 2 months of lowest receipts) and the allocation
shall include the amount of average monthly distribution from
the Regional Transportation Authority Occupation and Use Tax
Replacement Fund. The distribution made in July 1992 and each
year thereafter under this paragraph and the preceding
paragraph shall be reduced by the amount allocated and
disbursed under this paragraph in the preceding calendar year.
The Department of Revenue shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.

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(o) Failure to adopt a budget ordinance or otherwise to
comply with Section 4.01 of this Act or to adopt a Five-year
Capital Program or otherwise to comply with paragraph (b) of
Section 2.01 of this Act shall not affect the validity of any
tax imposed by the Authority otherwise in conformity with law.
(p) At no time shall a public transportation tax or motor
vehicle parking tax authorized under paragraphs (b), (c) and
(d) of this Section be in effect at the same time as any
retailers' occupation, use or service occupation tax
authorized under paragraphs (e), (f) and (g) of this Section is
in effect.
Any taxes imposed under the authority provided in
paragraphs (b), (c) and (d) shall remain in effect only until
the time as any tax authorized by paragraphs (e), (f) or (g) of
this Section are imposed and becomes effective. Once any tax
authorized by paragraphs (e), (f) or (g) is imposed the Board
may not reimpose taxes as authorized in paragraphs (b), (c) and
(d) of the Section unless any tax authorized by paragraphs (e),
(f) or (g) of this Section becomes ineffective by means other
than an ordinance of the Board.
(q) Any existing rights, remedies and obligations
(including enforcement by the Regional Transportation
Authority) arising under any tax imposed under paragraphs (b),
(c) or (d) of this Section shall not be affected by the
imposition of a tax under paragraphs (e), (f) or (g) of this
Section.

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(Source: P.A. 99-180, eff. 7-29-15; 99-217, eff. 7-31-15;
99-642, eff. 7-28-16; 100-23, eff. 7-6-17; 100-587, eff.
6-4-18.)
Section 35. The Water Commission Act of 1985 is amended by
changing Section 4 as follows:
(70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
Sec. 4. Taxes.
(a) The board of commissioners of any county water
commission may, by ordinance, impose throughout the territory
of the commission any or all of the taxes provided in this
Section for its corporate purposes. However, no county water
commission may impose any such tax unless the commission
certifies the proposition of imposing the tax to the proper
election officials, who shall submit the proposition to the
voters residing in the territory at an election in accordance
with the general election law, and the proposition has been
approved by a majority of those voting on the proposition.
The proposition shall be in the form provided in Section 5
or shall be substantially in the following form:
-------------------------------------------------------------
Shall the (insert corporate
name of county water commission) YES
impose (state type of tax or ------------------------
taxes to be imposed) at the NO

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rate of 1/4%?
-------------------------------------------------------------
Taxes imposed under this Section and civil penalties
imposed incident thereto shall be collected and enforced by the
State Department of Revenue. The Department shall have the
power to administer and enforce the taxes and to determine all
rights for refunds for erroneous payments of the taxes.
(b) The board of commissioners may impose a County Water
Commission Retailers' Occupation Tax upon all persons engaged
in the business of selling tangible personal property at retail
in the territory of the commission at a rate of 1/4% of the
gross receipts from the sales made in the course of such
business within the territory. The tax imposed under this
paragraph and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the State
Department of Revenue. The Department shall have full power to
administer and enforce this paragraph; to collect all taxes and
penalties due hereunder; to dispose of taxes and penalties so
collected in the manner hereinafter provided; and to determine
all rights to credit memoranda arising on account of the
erroneous payment of tax or penalty hereunder. In the
administration of, and compliance with, this paragraph, the
Department and persons who are subject to this paragraph shall
have the same rights, remedies, privileges, immunities, powers
and duties, and be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions

HB1573 - 116 - LRB101 00254 HLH 45258 b
and definitions of terms, and employ the same modes of
procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
therein other than the State rate of tax except that food for
human consumption that is to be consumed off the premises where
it is sold (other than alcoholic beverages, soft drinks, and
food that has been prepared for immediate consumption) and
prescription and nonprescription medicine, drugs, medical
appliances and insulin, urine testing materials, syringes, and
needles used by diabetics, for human use, shall not be subject
to tax hereunder), 2c, 3 (except as to the disposition of taxes
and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, and 13
of the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
seller's tax liability hereunder by separately stating the tax
as an additional charge, which charge may be stated in
combination, in a single amount, with State taxes that sellers
are required to collect under the Use Tax Act and under
subsection (e) of Section 4.03 of the Regional Transportation
Authority Act, in accordance with such bracket schedules as the
Department may prescribe.
Whenever the Department determines that a refund should be

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made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of a county water commission tax fund established
under subsection (g) of this Section.
For the purpose of determining whether a tax authorized
under this paragraph is applicable, a retail sale by a producer
of coal or other mineral mined in Illinois is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsections (c) and (d) of this Section.
No tax shall be imposed or collected under this subsection
on the sale of a motor vehicle in this State to a resident of
another state if that motor vehicle will not be titled in this
State.
Nothing in this paragraph shall be construed to authorize a
county water commission to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by this

HB1573 - 118 - LRB101 00254 HLH 45258 b
State.
(c) If a tax has been imposed under subsection (b), a
County Water Commission Service Occupation Tax shall also be
imposed upon all persons engaged, in the territory of the
commission, in the business of making sales of service, who, as
an incident to making the sales of service, transfer tangible
personal property within the territory. The tax rate shall be
1/4% of the selling price of tangible personal property so
transferred within the territory. The tax imposed under this
paragraph and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the State
Department of Revenue. The Department shall have full power to
administer and enforce this paragraph; to collect all taxes and
penalties due hereunder; to dispose of taxes and penalties so
collected in the manner hereinafter provided; and to determine
all rights to credit memoranda arising on account of the
erroneous payment of tax or penalty hereunder. In the
administration of, and compliance with, this paragraph, the
Department and persons who are subject to this paragraph shall
have the same rights, remedies, privileges, immunities, powers
and duties, and be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions
and definitions of terms, and employ the same modes of
procedure, as are prescribed in Sections 1a-1, 2 (except that
the reference to State in the definition of supplier
maintaining a place of business in this State shall mean the

HB1573 - 119 - LRB101 00254 HLH 45258 b
territory of the commission), 2a, 3 through 3-50 (in respect to
all provisions therein other than the State rate of tax except
that food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, shall not be subject to tax hereunder), 4 (except that the
reference to the State shall be to the territory of the
commission), 5, 7, 8 (except that the jurisdiction to which the
tax shall be a debt to the extent indicated in that Section 8
shall be the commission), 9 (except as to the disposition of
taxes and penalties collected and except that the returned
merchandise credit for this tax may not be taken against any
State tax), 10, 11, 12 (except the reference therein to Section
2b of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State shall mean the territory of the
commission), the first paragraph of Section 15, 15.5, 16, 17,
18, 19, and 20 of the Service Occupation Tax Act as fully as if
those provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that servicemen

HB1573 - 120 - LRB101 00254 HLH 45258 b
are authorized to collect under the Service Use Tax Act, and
any tax for which servicemen may be liable under subsection (f)
of Section 4.03 of the Regional Transportation Authority Act,
in accordance with such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of a county water commission tax fund established
under subsection (g) of this Section.
Nothing in this paragraph shall be construed to authorize a
county water commission to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by the
State.
(d) If a tax has been imposed under subsection (b), a tax
shall also be imposed upon the privilege of using, in the
territory of the commission, any item of tangible personal
property that is purchased outside the territory at retail from
a retailer, and that is titled or registered with an agency of
this State's government, at a rate of 1/4% of the selling price
of the tangible personal property within the territory, as
"selling price" is defined in the Use Tax Act. The tax shall be

HB1573 - 121 - LRB101 00254 HLH 45258 b
collected from persons whose Illinois address for titling or
registration purposes is given as being in the territory. The
tax shall be collected by the Department of Revenue for a
county water commission. The tax must be paid to the State, or
an exemption determination must be obtained from the Department
of Revenue, before the title or certificate of registration for
the property may be issued. The tax or proof of exemption may
be transmitted to the Department by way of the State agency
with which, or the State officer with whom, the tangible
personal property must be titled or registered if the
Department and the State agency or State officer determine that
this procedure will expedite the processing of applications for
title or registration.
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties, and
interest due hereunder; to dispose of taxes, penalties, and
interest so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda or refunds arising
on account of the erroneous payment of tax, penalty, or
interest hereunder. In the administration of and compliance
with this paragraph, the Department and persons who are subject
to this paragraph shall have the same rights, remedies,
privileges, immunities, powers, and duties, and be subject to
the same conditions, restrictions, limitations, penalties,
exclusions, exemptions, and definitions of terms and employ the
same modes of procedure, as are prescribed in Sections 2

HB1573 - 122 - LRB101 00254 HLH 45258 b
(except the definition of "retailer maintaining a place of
business in this State"), 3 through 3-80 (except provisions
pertaining to the State rate of tax, and except provisions
concerning collection or refunding of the tax by retailers, and
except that food for human consumption that is to be consumed
off the premises where it is sold (other than alcoholic
beverages, soft drinks, and food that has been prepared for
immediate consumption) and prescription and nonprescription
medicines, drugs, medical appliances and insulin, urine
testing materials, syringes, and needles used by diabetics, for
human use, shall not be subject to tax hereunder), 4, 11, 12,
12a, 14, 15, 19 (except the portions pertaining to claims by
retailers and except the last paragraph concerning refunds),
20, 21, and 22 of the Use Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act that are not inconsistent with this
paragraph, as fully as if those provisions were set forth
herein.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of a county water commission tax fund established
under subsection (g) of this Section.
(e) A certificate of registration issued by the State

HB1573 - 123 - LRB101 00254 HLH 45258 b
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under subsection (b), (c), or (d)
of this Section and no additional registration shall be
required under the tax. A certificate issued under the Use Tax
Act or the Service Use Tax Act shall be applicable with regard
to any tax imposed under subsection (c) of this Section.
(f) Any ordinance imposing or discontinuing any tax under
this Section shall be adopted and a certified copy thereof
filed with the Department on or before June 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the county water commission as of
September 1 next following the adoption and filing. Beginning
January 1, 1992, an ordinance or resolution imposing or
discontinuing the tax hereunder shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of July, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, an ordinance or resolution imposing or
discontinuing the tax hereunder shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following such adoption and filing.

HB1573 - 124 - LRB101 00254 HLH 45258 b
(g) The State Department of Revenue shall, upon collecting
any taxes as provided in this Section, pay the taxes over to
the State Treasurer as trustee for the commission. The taxes
shall be held in a trust fund outside the State Treasury.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the State
Department of Revenue shall prepare and certify to the
Comptroller of the State of Illinois the amount to be paid to
the commission, which shall be the amount (not including credit
memoranda) collected under this Section during the second
preceding calendar month by the Department plus an amount the
Department determines is necessary to offset any amounts that
were erroneously paid to a different taxing body, and not
including any amount equal to the amount of refunds made during
the second preceding calendar month by the Department on behalf
of the commission, and not including any amount that the
Department determines is necessary to offset any amounts that
were payable to a different taxing body but were erroneously

HB1573 - 125 - LRB101 00254 HLH 45258 b
paid to the commission, and less any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1% 1.5% of the
remainder, which shall be transferred into the Tax Compliance
and Administration Fund. The Department, at the time of each
monthly disbursement to the commission, shall prepare and
certify to the State Comptroller the amount to be transferred
into the Tax Compliance and Administration Fund under this
subsection. Within 10 days after receipt by the Comptroller of
the certification of the amount to be paid to the commission
and the Tax Compliance and Administration Fund, the Comptroller
shall cause an order to be drawn for the payment for the amount
in accordance with the direction in the certification.
(h) Beginning June 1, 2016, any tax imposed pursuant to
this Section may no longer be imposed or collected, unless a
continuation of the tax is approved by the voters at a
referendum as set forth in this Section.
(Source: P.A. 99-217, eff. 7-31-15; 99-642, eff. 7-28-16;
100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 100-863, eff.
8-14-18.)
Section 99. Effective date. This Act takes effect July 1,
2019.