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

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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

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Sen. Chapin Rose

Filed: 5/17/2013

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AMENDMENT TO HOUSE BILL 2755
AMENDMENT NO. ______. Amend House Bill 2755 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Municipal Code is amended by
adding Section 8-11-22 as follows:
(65 ILCS 5/8-11-22 new)
Sec. 8-11-22. School facility occupation taxes; City of
Shelbyville.
(a) The corporate authorities of the City of Shelbyville
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 City of Shelbyville on the gross
receipts from the sales made in the course of business to
provide revenue to be used exclusively for school facility
purposes if a proposition for the tax has been submitted to the

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electors of the City of Shelbyville and approved by a majority
of those voting on the question as provided in subsection (c).
The tax under this Section may be imposed in one-quarter
percent increments and may not exceed 1%.
A tax may not be imposed under this Section by the City of
Shelbyville if the voters of the county have approved a school
facility occupation tax pursuant to Section 5-1006.7 of the
Counties Code at a referendum submitted to the voters on or
before the March 2014 general primary election.
This additional 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 non-prescription medicines, drugs, medical
appliances and insulin, urine testing materials, syringes and
needles used by diabetics. The Department of Revenue 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. The Department shall deposit all taxes and
penalties collected under this Section into a special fund
created for that purpose.
In the administration of and compliance with this
subsection, the Department and persons who are subject to this

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Section: (i) have the same rights, remedies, privileges,
immunities, powers, and duties, (ii) are subject to the same
conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) shall employ the same modes of
procedure as are set forth in Sections 1 through 1o, 2 through
2-70 (in respect to all provisions contained in those Sections
other than the State rate of tax), 2a through 2h, 3 (except as
to the disposition of taxes and penalties collected), 4, 5, 5a,
5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8,
9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
and all provisions of the Uniform Penalty and Interest Act as
if those provisions were set forth in this subsection.
The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act permits the retailer to engage in a business that is
taxable without registering separately with the Department
under an ordinance or resolution under this subsection.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability by separately stating that tax as an
additional charge, which may be stated in combination, in a
single amount, with State tax that sellers are required to
collect under the Use Tax Act, pursuant to any bracketed
schedules set forth by the Department.
(b) If a tax has been imposed under subsection (a), then a
service occupation tax must also be imposed at the same rate

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upon all persons engaged, in the City of Shelbyville, in the
business of making sales of service, who, as an incident to
making those sales of service, transfer tangible personal
property within the City of Shelbyville 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 Section and all civil penalties
that may be assessed as an incident thereof shall be collected
and enforced by the Department and deposited into a special
fund created for that purpose. The Department has full power to
administer and enforce this subsection, to collect all taxes
and penalties due under this subsection, to dispose of taxes
and penalties so collected in the manner provided in this
subsection, 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
subsection, the Department and persons who are subject to this
subsection shall (i) have the same rights, remedies,
privileges, immunities, powers and duties, (ii) be subject to

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

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question of imposing the tax has been submitted to the electors
of the City of Shelbyville at a regular election and approved
by a majority of the electors voting on the question.
The corporate authorities of the City of Shelbyville may by
ordinance or resolution call for the submission to the electors
of the City of Shelbyville the question of whether the City of
Shelbyville shall impose a tax under this Section. Such
question shall be certified by the county clerk.
The county clerk must submit the question in substantially
the following form:
Shall a retailers' occupation tax and a service
occupation tax (commonly referred to as a "sales tax") be
imposed in the City of Shelbyville at a rate of 1% to be
used exclusively for school facility purposes?
Votes must be recorded as votes "Yes" or "No".
If a majority of the electors voting on the question vote
in the affirmative, then the tax shall be imposed at the rate
set forth in the question.
(d) 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 School
Facility Occupation Tax Fund, which shall be an unappropriated
trust fund held outside the State treasury.
On or before the 25th day of each calendar month, the

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Department shall prepare and certify to the Comptroller the
amount of the tax collected under this Section. The Comptroller
shall pay the amount certified to the City of Shelbyville (i)
less 2% of that amount, which 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 in administering and enforcing the provisions of
this Section, on behalf of the City of Shelbyville, and (ii)
less an amount equal to the amount of refunds made during the
second preceding calendar month by the Department on behalf of
the City of Shelbyville. When certifying the amount of a
monthly disbursement to the City of Shelbyville under this
Section, the Department shall increase or decrease the amounts
by an amount necessary to offset any miscalculation of previous
disbursements within the previous 6 months from the time a
miscalculation is discovered.
Within 10 days after receipt by the Comptroller from the
Department of the disbursement certification to the regional
superintendents of the schools provided for in this Section,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with directions contained in
the certification.
If the Department determines that a refund should be made
under this Section to a claimant instead of issuing a credit
memorandum, then the Department shall notify the Comptroller,
who shall cause the order to be drawn for the amount specified

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and to the person named in the notification from the
Department. The refund shall be paid by the Treasurer out of
the School Facility Occupation Tax Fund.
(e) For the purposes 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 subsection 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.
(f) Nothing in this Section may be construed to authorize a
tax to be imposed 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.
(g) If the corporate authorities of the City of Shelbyville
impose a tax under this Section pursuant to a referendum, then
the corporate authorities may reduce or discontinue the tax,
but only in accordance with subsections (h-5) and (i) of this
Section. If, however, the City of Shelbyville or any taxing
district within the City of Shelbyville issues bonds that are
secured by the proceeds of the tax under this Section, then the
corporate authorities may not reduce the tax rate or
discontinue the tax if that rate reduction or discontinuance
would adversely affect the City of Shelbyville's ability to pay

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the principal and interest on those bonds as they become due or
necessitate the extension of additional property taxes to pay
the principal and interest on those bonds. If the corporate
authorities reduce the tax rate or discontinues the tax, then a
referendum must be held in accordance with subsection (c) of
this Section in order to increase the rate of the tax or to
reimpose the discontinued tax.
The results of any election that imposes, reduces, or
discontinues a tax under this Section must be certified by the
county clerk, and any ordinance that increases or lowers the
rate or discontinues the tax must be certified by the county
clerk and, in each case, filed with the Illinois Department of
Revenue either (i) on or before the first day of April,
whereupon the Department shall proceed to administer and
enforce the tax or change in the rate as of the first day of
July next following the filing; or (ii) on or before the first
day of October, whereupon the Department shall proceed to
administer and enforce the tax or change in the rate as of the
first day of January next following the filing.
(h) For purposes of this Section:
"Department" means the Department of Revenue.
"School facility purposes" means (i) 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

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

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

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