Bill Text: IL HB2755 | 2013-2014 | 98th General Assembly | Amended


Bill Title: Amends the Illinois Municipal Code. In provisions that allow non-home rule municipalities to impose certain occupation and use taxes for expenditure on public infrastructure, amends the definition of "public infrastructure" to include public schools in the City of Shelbyville. Effective immediately.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Engrossed - Dead) 2013-08-09 - Senate Floor Amendment No. 1 Re-referred to Assignments; 3-9(b) [HB2755 Detail]

Download: Illinois-2013-HB2755-Amended.html

Sen. Chapin Rose

Filed: 5/17/2013

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1
AMENDMENT TO HOUSE BILL 2755
2 AMENDMENT NO. ______. Amend House Bill 2755 by replacing
3everything after the enacting clause with the following:
4 "Section 5. The Illinois Municipal Code is amended by
5adding Section 8-11-22 as follows:
6 (65 ILCS 5/8-11-22 new)
7 Sec. 8-11-22. School facility occupation taxes; City of
8Shelbyville.
9 (a) The corporate authorities of the City of Shelbyville
10may impose a tax upon all persons engaged in the business of
11selling tangible personal property, other than personal
12property titled or registered with an agency of this State's
13government, at retail in the City of Shelbyville on the gross
14receipts from the sales made in the course of business to
15provide revenue to be used exclusively for school facility
16purposes if a proposition for the tax has been submitted to the

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1electors of the City of Shelbyville and approved by a majority
2of those voting on the question as provided in subsection (c).
3The tax under this Section may be imposed in one-quarter
4percent increments and may not exceed 1%.
5 A tax may not be imposed under this Section by the City of
6Shelbyville if the voters of the county have approved a school
7facility occupation tax pursuant to Section 5-1006.7 of the
8Counties Code at a referendum submitted to the voters on or
9before the March 2014 general primary election.
10 This additional tax may not be imposed on the sale of food
11for human consumption that is to be consumed off the premises
12where it is sold (other than alcoholic beverages, soft drinks,
13and food that has been prepared for immediate consumption) and
14prescription and non-prescription medicines, drugs, medical
15appliances and insulin, urine testing materials, syringes and
16needles used by diabetics. The Department of Revenue has full
17power to administer and enforce this Section, to collect all
18taxes and penalties due under this Section, to dispose of taxes
19and penalties so collected in the manner provided in this
20Section, and to determine all rights to credit memoranda
21arising on account of the erroneous payment of a tax or penalty
22under this Section. The Department shall deposit all taxes and
23penalties collected under this Section into a special fund
24created for that purpose.
25 In the administration of and compliance with this
26subsection, the Department and persons who are subject to this

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1Section: (i) have the same rights, remedies, privileges,
2immunities, powers, and duties, (ii) are subject to the same
3conditions, restrictions, limitations, penalties, and
4definitions of terms, and (iii) shall employ the same modes of
5procedure as are set forth in Sections 1 through 1o, 2 through
62-70 (in respect to all provisions contained in those Sections
7other than the State rate of tax), 2a through 2h, 3 (except as
8to the disposition of taxes and penalties collected), 4, 5, 5a,
95b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8,
109, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
11and all provisions of the Uniform Penalty and Interest Act as
12if those provisions were set forth in this subsection.
13 The certificate of registration that is issued by the
14Department to a retailer under the Retailers' Occupation Tax
15Act permits the retailer to engage in a business that is
16taxable without registering separately with the Department
17under an ordinance or resolution under this subsection.
18 Persons subject to any tax imposed under the authority
19granted in this Section may reimburse themselves for their
20seller's tax liability by separately stating that tax as an
21additional charge, which may be stated in combination, in a
22single amount, with State tax that sellers are required to
23collect under the Use Tax Act, pursuant to any bracketed
24schedules set forth by the Department.
25 (b) If a tax has been imposed under subsection (a), then a
26service occupation tax must also be imposed at the same rate

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

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1the same conditions, restrictions, limitations, penalties and
2definition of terms, and (iii) employ the same modes of
3procedure as are set forth in Sections 2 (except that that
4reference to State in the definition of supplier maintaining a
5place of business in this State means the City of Shelbyville),
62a through 2d, 3 through 3-50 (in respect to all provisions
7contained in those Sections other than the State rate of tax),
84 (except that the reference to the State shall be to the City
9of Shelbyville), 5, 7, 8 (except that the jurisdiction to which
10the tax is a debt to the extent indicated in that Section 8 is
11the City of Shelbyville), 9 (except as to the disposition of
12taxes and penalties collected), 10, 11, 12 (except the
13reference therein to Section 2b of the Retailers' Occupation
14Tax Act), 13 (except that any reference to the State means the
15City of Shelbyville), Section 15, 16, 17, 18, 19, and 20 of the
16Service Occupation Tax Act and all provisions of the Uniform
17Penalty and Interest Act, as fully as if those provisions were
18set forth herein.
19 Persons subject to any tax imposed under the authority
20granted in this subsection may reimburse themselves for their
21serviceman's tax liability by separately stating the tax as an
22additional charge, which may be stated in combination, in a
23single amount, with State tax that servicemen are authorized to
24collect under the Service Use Tax Act, pursuant to any
25bracketed schedules set forth by the Department.
26 (c) The tax under this Section may not be imposed until the

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1question of imposing the tax has been submitted to the electors
2of the City of Shelbyville at a regular election and approved
3by a majority of the electors voting on the question.
4 The corporate authorities of the City of Shelbyville may by
5ordinance or resolution call for the submission to the electors
6of the City of Shelbyville the question of whether the City of
7Shelbyville shall impose a tax under this Section. Such
8question shall be certified by the county clerk.
9 The county clerk must submit the question in substantially
10the following form:
11 Shall a retailers' occupation tax and a service
12 occupation tax (commonly referred to as a "sales tax") be
13 imposed in the City of Shelbyville at a rate of 1% to be
14 used exclusively for school facility purposes?
15 Votes must be recorded as votes "Yes" or "No".
16 If a majority of the electors voting on the question vote
17in the affirmative, then the tax shall be imposed at the rate
18set forth in the question.
19 (d) The Department shall immediately pay over to the State
20Treasurer, ex officio, as trustee, all taxes and penalties
21collected under this Section to be deposited into the School
22Facility Occupation Tax Fund, which shall be an unappropriated
23trust fund held outside the State treasury.
24 On or before the 25th day of each calendar month, the

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1Department shall prepare and certify to the Comptroller the
2amount of the tax collected under this Section. The Comptroller
3shall pay the amount certified to the City of Shelbyville (i)
4less 2% of that amount, which shall be deposited into the Tax
5Compliance and Administration Fund and shall be used by the
6Department, subject to appropriation, to cover the costs of the
7Department in administering and enforcing the provisions of
8this Section, on behalf of the City of Shelbyville, and (ii)
9less an amount equal to the amount of refunds made during the
10second preceding calendar month by the Department on behalf of
11the City of Shelbyville. When certifying the amount of a
12monthly disbursement to the City of Shelbyville under this
13Section, the Department shall increase or decrease the amounts
14by an amount necessary to offset any miscalculation of previous
15disbursements within the previous 6 months from the time a
16miscalculation is discovered.
17 Within 10 days after receipt by the Comptroller from the
18Department of the disbursement certification to the regional
19superintendents of the schools provided for in this Section,
20the Comptroller shall cause the orders to be drawn for the
21respective amounts in accordance with directions contained in
22the certification.
23 If the Department determines that a refund should be made
24under this Section to a claimant instead of issuing a credit
25memorandum, then the Department shall notify the Comptroller,
26who shall cause the order to be drawn for the amount specified

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1and to the person named in the notification from the
2Department. The refund shall be paid by the Treasurer out of
3the School Facility Occupation Tax Fund.
4 (e) For the purposes of determining the local governmental
5unit whose tax is applicable, a retail sale by a producer of
6coal or another mineral mined in Illinois is a sale at retail
7at the place where the coal or other mineral mined in Illinois
8is extracted from the earth. This subsection does not apply to
9coal or another mineral when it is delivered or shipped by the
10seller to the purchaser at a point outside Illinois so that the
11sale is exempt under the United States Constitution as a sale
12in interstate or foreign commerce.
13 (f) Nothing in this Section may be construed to authorize a
14tax to be imposed upon the privilege of engaging in any
15business that under the Constitution of the United States may
16not be made the subject of taxation by this State.
17 (g) If the corporate authorities of the City of Shelbyville
18impose a tax under this Section pursuant to a referendum, then
19the corporate authorities may reduce or discontinue the tax,
20but only in accordance with subsections (h-5) and (i) of this
21Section. If, however, the City of Shelbyville or any taxing
22district within the City of Shelbyville issues bonds that are
23secured by the proceeds of the tax under this Section, then the
24corporate authorities may not reduce the tax rate or
25discontinue the tax if that rate reduction or discontinuance
26would adversely affect the City of Shelbyville's ability to pay

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

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1 acquisition and improvement of real property and interest
2 in real property required, or expected to be required, in
3 connection with the capital facilities and (ii) the payment
4 of bonds or other obligations heretofore or hereafter
5 issued, including bonds or other obligations heretofore or
6 hereafter issued to refund or to continue to refund bonds
7 or other obligations issued, for school facility purposes,
8 provided that the taxes levied to pay those bonds are
9 abated by the amount of the taxes imposed under this
10 Section that are used to pay those bonds. "School-facility
11 purposes" also includes fire prevention, safety, energy
12 conservation, disabled accessibility, school security, and
13 specified repair purposes set forth under Section 17-2.11
14 of the School Code.
15 (h-5) Where a tax has been imposed by the corporate
16authorities of the City of Shelbyville under this Section
17pursuant to a referendum, they may, by ordinance or resolution,
18submit to the voters of the City of Shelbyville the question of
19reducing or discontinuing the tax. In the ordinance or
20resolution, the corporate authorities shall certify the
21question to the county clerk. The county clerk must submit the
22question in substantially the following form:
23 Shall the school facility retailers' occupation tax
24 and service occupation tax (commonly referred to as the
25 "school facility sales tax") currently imposed in the City

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1 of Shelbyville at a rate of (insert rate) be (reduced to
2 (insert rate))(discontinued)?
3 Votes must be recorded as votes "Yes" or "No".
4 If a majority of the electors voting on the question vote
5in the affirmative, then, subject to the provisions of
6subsection (g) of this Section, the tax shall be reduced or
7discontinued as set forth in the question.
8 (i) In the event that the City of Shelbyville imposes a tax
9under this Section and the county imposes a school facility
10occupation tax under Section 5-1006.7 of the Counties Code,
11then the City of Shelbyville may not continue to impose the tax
12under this Section, nor may the City of Shelbyville impose a
13new tax under this Section, beginning on the effective date of
14the county's ordinance or resolution imposing the tax, except
15as provided in subsection (i-5).
16 (i-5) If the City of Shelbyville or any taxing district
17located within the City of Shelbyville issues bonds that are
18secured by the proceeds of the tax under this Section, then the
19tax shall not discontinue pursuant to subsection (i) if that
20discontinuance would adversely affect the City of
21Shelbyville's ability to pay the principal and interest on
22those bonds as they become due or necessitate the extension of
23additional property taxes to pay the principal and interest on
24those bonds; however, the tax shall be discontinued at such
25time as the bonds are paid in full. Furthermore, if the county

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1imposes a school facility occupation tax under Section 5-1006.7
2of the Counties Code, then the City of Shelbyville may not
3issue any new or additional bonds secured by the proceeds of a
4tax imposed under this Section, except for bonds issued to
5refund bonds issued before the effective date of the tax
6imposed by the county.
7 (j) This Section may be cited as the City of Shelbyville
8School Facility Occupation Tax Law.
9 Section 99. Effective date. This Act takes effect upon
10becoming law.".
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