Bill Text: IL SB2221 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the State Finance Act, the Retailers' Occupation Tax Act, the Counties Code, the Illinois Municipal Code, the Metro-East Park and Recreation District Act, the Local Mass Transit District Act, the Regional Transportation Authority Act, and the Water Commission Act of 1985. Provides that, for the purposes of local sales tax sourcing, a retail sale of fuel or petroleum products used by an aircraft shall be deemed to be a retail sale at the place where the fuel or petroleum products are delivered to the aircraft.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2017-06-30 - Referred to Assignments [SB2221 Detail]

Download: Illinois-2017-SB2221-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB2221

Introduced 6/30/2017, by Sen. Martin A. Sandoval

SYNOPSIS AS INTRODUCED:
30 ILCS 105/6z-18 from Ch. 127, par. 142z-18
30 ILCS 105/6z-20 from Ch. 127, par. 142z-20
35 ILCS 120/2-12
55 ILCS 5/5-1006 from Ch. 34, par. 5-1006
55 ILCS 5/5-1006.5
55 ILCS 5/5-1006.7
55 ILCS 5/5-1008.5
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 5/8-11-1.6
65 ILCS 5/11-74.3-6
70 ILCS 200/245-12
70 ILCS 750/25
70 ILCS 1605/30
70 ILCS 3610/5.01 from Ch. 111 2/3, par. 355.01
70 ILCS 3615/4.03 from Ch. 111 2/3, par. 704.03
70 ILCS 3720/4 from Ch. 111 2/3, par. 254

Amends the State Finance Act, the Retailers' Occupation Tax Act, the Counties Code, the Illinois Municipal Code, the Metro-East Park and Recreation District Act, the Local Mass Transit District Act, the Regional Transportation Authority Act, and the Water Commission Act of 1985. Provides that, for the purposes of local sales tax sourcing, a retail sale of fuel or petroleum products used by an aircraft shall be deemed to be a retail sale at the place where the fuel or petroleum products are delivered to the aircraft.
LRB100 13309 AWJ 27836 b

A BILL FOR

SB2221LRB100 13309 AWJ 27836 b
1 AN ACT concerning revenue.
2 WHEREAS, Illinois law provides low-income disabled
3individuals and senior citizens access to public transit at no
4cost; and
5 WHEREAS, Use of these services has increased dramatically
6in recent years, with over 29,600,000 rides provided in 2013;
7and
8 WHEREAS, Illinois provides funding to the Regional
9Transportation Authority to cover a portion of the cost of
10those rides; and
11 WHEREAS, The budget of the Regional Transportation
12Authority called for a State reimbursement for those rides of
13$34,070,000 annually in each fiscal year from 2015 through
142018; however, the State only budgeted $17,570,000 in
15reimbursements for fiscal year 2015; and
16 WHEREAS, A budget gap of this size could threaten vital
17transportation services; and
18 WHEREAS, Airlines have engaged in controversial fuel
19purchasing practices that cost the Regional Transportation
20Authority an estimated $18,500,000 in revenue in 2013, in
21addition to costing Cook County and the City of Chicago

SB2221- 2 -LRB100 13309 AWJ 27836 b
1combined $34,200,000 in 2013; and
2 WHEREAS, It is the intent of the General Assembly to
3specify that, with respect to the imposition of any tax on fuel
4used by an aircraft, regardless of whether the tax is imposed
5on the sale, the business of selling, the purchase, or the use
6of those products, the location of the sale, business of
7selling, purchase, or use shall be deemed to be the place where
8the fuel is delivered to the aircraft; and
9 WHEREAS, The State of California enacted legislation to
10prevent airlines from using a similar practice in that state;
11and
12 WHEREAS, The Regional Transportation Authority is
13encouraged to use any additional revenue from this amendatory
14Act of the 100th General Assembly to fund no-cost transit
15services for low-income disabled individuals and senior
16citizens; therefore
17 Be it enacted by the People of the State of Illinois,
18represented in the General Assembly:
19 Section 5. The State Finance Act is amended by changing
20Sections 6z-18 and 6z-20 as follows:

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1 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
2 Sec. 6z-18. A portion of the money paid into the Local
3Government Tax Fund from sales of food for human consumption
4which is to be consumed off the premises where it is sold
5(other than alcoholic beverages, soft drinks and food which has
6been prepared for immediate consumption) and prescription and
7nonprescription medicines, drugs, medical appliances and
8insulin, urine testing materials, syringes and needles used by
9diabetics, which occurred in municipalities, shall be
10distributed to each municipality based upon the sales which
11occurred in that municipality. The remainder shall be
12distributed to each county based upon the sales which occurred
13in the unincorporated area of that county.
14 A portion of the money paid into the Local Government Tax
15Fund from the 6.25% general use tax rate on the selling price
16of tangible personal property which is purchased outside
17Illinois at retail from a retailer and which is titled or
18registered by any agency of this State's government shall be
19distributed to municipalities as provided in this paragraph.
20Each municipality shall receive the amount attributable to
21sales for which Illinois addresses for titling or registration
22purposes are given as being in such municipality. The remainder
23of the money paid into the Local Government Tax Fund from such
24sales shall be distributed to counties. Each county shall
25receive the amount attributable to sales for which Illinois
26addresses for titling or registration purposes are given as

SB2221- 4 -LRB100 13309 AWJ 27836 b
1being located in the unincorporated area of such county.
2 A portion of the money paid into the Local Government Tax
3Fund from the 6.25% general rate (and, beginning July 1, 2000
4and through December 31, 2000, the 1.25% rate on motor fuel and
5gasohol, and beginning on August 6, 2010 through August 15,
62010, the 1.25% rate on sales tax holiday items) on sales
7subject to taxation under the Retailers' Occupation Tax Act and
8the Service Occupation Tax Act, which occurred in
9municipalities, shall be distributed to each municipality,
10based upon the sales which occurred in that municipality. The
11remainder shall be distributed to each county, based upon the
12sales which occurred in the unincorporated area of such county.
13 For the purpose of determining allocation to the local
14government unit, a retail sale by a producer of coal or other
15mineral mined in Illinois is a sale at retail at the place
16where the coal or other mineral mined in Illinois is extracted
17from the earth. This paragraph does not apply to coal or other
18mineral when it is delivered or shipped by the seller to the
19purchaser at a point outside Illinois so that the sale is
20exempt under the United States Constitution as a sale in
21interstate or foreign commerce.
22 For the purpose of determining allocation to the local
23government unit, the location where a retailer is deemed to be
24engaged in the business of selling fuel used by an aircraft
25shall be deemed to be the place where the fuel is delivered to
26the aircraft. For the purposes of this paragraph, "fuel" has

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1the meaning given to that term in Section 1.19 of the Motor
2Fuel Tax Law.
3 Whenever the Department determines that a refund of money
4paid into the Local Government Tax Fund should be made to a
5claimant instead of issuing a credit memorandum, the Department
6shall notify the State Comptroller, who shall cause the order
7to be drawn for the amount specified, and to the person named,
8in such notification from the Department. Such refund shall be
9paid by the State Treasurer out of the Local Government Tax
10Fund.
11 As soon as possible after the first day of each month,
12beginning January 1, 2011, upon certification of the Department
13of Revenue, the Comptroller shall order transferred, and the
14Treasurer shall transfer, to the STAR Bonds Revenue Fund the
15local sales tax increment, as defined in the Innovation
16Development and Economy Act, collected during the second
17preceding calendar month for sales within a STAR bond district
18and deposited into the Local Government Tax Fund, less 3% of
19that amount, which shall be transferred into the Tax Compliance
20and Administration Fund and shall be used by the Department,
21subject to appropriation, to cover the costs of the Department
22in administering the Innovation Development and Economy Act.
23 After the monthly transfer to the STAR Bonds Revenue Fund,
24on or before the 25th day of each calendar month, the
25Department shall prepare and certify to the Comptroller the
26disbursement of stated sums of money to named municipalities

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1and counties, the municipalities and counties to be those
2entitled to distribution of taxes or penalties paid to the
3Department during the second preceding calendar month. The
4amount to be paid to each municipality or county shall be the
5amount (not including credit memoranda) collected during the
6second preceding calendar month by the Department and paid into
7the Local Government Tax Fund, plus an amount the Department
8determines is necessary to offset any amounts which were
9erroneously paid to a different taxing body, and not including
10an amount equal to the amount of refunds made during the second
11preceding calendar month by the Department, and not including
12any amount which the Department determines is necessary to
13offset any amounts which are payable to a different taxing body
14but were erroneously paid to the municipality or county, and
15not including any amounts that are transferred to the STAR
16Bonds Revenue Fund. Within 10 days after receipt, by the
17Comptroller, of the disbursement certification to the
18municipalities and counties, provided for in this Section to be
19given to the Comptroller by the Department, the Comptroller
20shall cause the orders to be drawn for the respective amounts
21in accordance with the directions contained in such
22certification.
23 When certifying the amount of monthly disbursement to a
24municipality or county under this Section, the Department shall
25increase or decrease that amount by an amount necessary to
26offset any misallocation of previous disbursements. The offset

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1amount shall be the amount erroneously disbursed within the 6
2months preceding the time a misallocation is discovered.
3 The provisions directing the distributions from the
4special fund in the State Treasury provided for in this Section
5shall constitute an irrevocable and continuing appropriation
6of all amounts as provided herein. The State Treasurer and
7State Comptroller are hereby authorized to make distributions
8as provided in this Section.
9 In construing any development, redevelopment, annexation,
10preannexation or other lawful agreement in effect prior to
11September 1, 1990, which describes or refers to receipts from a
12county or municipal retailers' occupation tax, use tax or
13service occupation tax which now cannot be imposed, such
14description or reference shall be deemed to include the
15replacement revenue for such abolished taxes, distributed from
16the Local Government Tax Fund.
17 As soon as possible after the effective date of this
18amendatory Act of the 98th General Assembly, the State
19Comptroller shall order and the State Treasurer shall transfer
20$6,600,000 from the Local Government Tax Fund to the Illinois
21State Medical Disciplinary Fund.
22(Source: P.A. 97-333, eff. 8-12-11; 98-3, eff. 3-8-13.)
23 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
24 Sec. 6z-20. Of the money received from the 6.25% general
25rate (and, beginning July 1, 2000 and through December 31,

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12000, the 1.25% rate on motor fuel and gasohol, and beginning
2on August 6, 2010 through August 15, 2010, the 1.25% rate on
3sales tax holiday items) on sales subject to taxation under the
4Retailers' Occupation Tax Act and Service Occupation Tax Act
5and paid into the County and Mass Transit District Fund,
6distribution to the Regional Transportation Authority tax
7fund, created pursuant to Section 4.03 of the Regional
8Transportation Authority Act, for deposit therein shall be made
9based upon the retail sales occurring in a county having more
10than 3,000,000 inhabitants. The remainder shall be distributed
11to each county having 3,000,000 or fewer inhabitants based upon
12the retail sales occurring in each such county.
13 For the purpose of determining allocation to the local
14government unit, a retail sale by a producer of coal or other
15mineral mined in Illinois is a sale at retail at the place
16where the coal or other mineral mined in Illinois is extracted
17from the earth. This paragraph does not apply to coal or other
18mineral when it is delivered or shipped by the seller to the
19purchaser at a point outside Illinois so that the sale is
20exempt under the United States Constitution as a sale in
21interstate or foreign commerce.
22 For the purpose of determining allocation to the local
23government unit, the location where a retailer is deemed to be
24engaged in the business of selling fuel used by an aircraft
25shall be deemed to be the place where the fuel is delivered to
26the aircraft. For the purposes of this paragraph, "fuel" has

SB2221- 9 -LRB100 13309 AWJ 27836 b
1the meaning given to that term in Section 1.19 of the Motor
2Fuel Tax Law.
3 Of the money received from the 6.25% general use tax rate
4on tangible personal property which is purchased outside
5Illinois at retail from a retailer and which is titled or
6registered by any agency of this State's government and paid
7into the County and Mass Transit District Fund, the amount for
8which Illinois addresses for titling or registration purposes
9are given as being in each county having more than 3,000,000
10inhabitants shall be distributed into the Regional
11Transportation Authority tax fund, created pursuant to Section
124.03 of the Regional Transportation Authority Act. The
13remainder of the money paid from such sales shall be
14distributed to each county based on sales for which Illinois
15addresses for titling or registration purposes are given as
16being located in the county. Any money paid into the Regional
17Transportation Authority Occupation and Use Tax Replacement
18Fund from the County and Mass Transit District Fund prior to
19January 14, 1991, which has not been paid to the Authority
20prior to that date, shall be transferred to the Regional
21Transportation Authority tax fund.
22 Whenever the Department determines that a refund of money
23paid into the County and Mass Transit District Fund should be
24made to a claimant instead of issuing a credit memorandum, the
25Department shall notify the State Comptroller, who shall cause
26the order to be drawn for the amount specified, and to the

SB2221- 10 -LRB100 13309 AWJ 27836 b
1person named, in such notification from the Department. Such
2refund shall be paid by the State Treasurer out of the County
3and Mass Transit District Fund.
4 As soon as possible after the first day of each month,
5beginning January 1, 2011, upon certification of the Department
6of Revenue, the Comptroller shall order transferred, and the
7Treasurer shall transfer, to the STAR Bonds Revenue Fund the
8local sales tax increment, as defined in the Innovation
9Development and Economy Act, collected during the second
10preceding calendar month for sales within a STAR bond district
11and deposited into the County and Mass Transit District Fund,
12less 3% of that amount, which shall be transferred into the Tax
13Compliance and Administration Fund and shall be used by the
14Department, subject to appropriation, to cover the costs of the
15Department in administering the Innovation Development and
16Economy Act.
17 After the monthly transfer to the STAR Bonds Revenue Fund,
18on or before the 25th day of each calendar month, the
19Department shall prepare and certify to the Comptroller the
20disbursement of stated sums of money to the Regional
21Transportation Authority and to named counties, the counties to
22be those entitled to distribution, as hereinabove provided, of
23taxes or penalties paid to the Department during the second
24preceding calendar month. The amount to be paid to the Regional
25Transportation Authority and each county having 3,000,000 or
26fewer inhabitants shall be the amount (not including credit

SB2221- 11 -LRB100 13309 AWJ 27836 b
1memoranda) collected during the second preceding calendar
2month by the Department and paid into the County and Mass
3Transit District Fund, plus an amount the Department determines
4is necessary to offset any amounts which were erroneously paid
5to a different taxing body, and not including an amount equal
6to the amount of refunds made during the second preceding
7calendar month by the Department, and not including any amount
8which the Department determines is necessary to offset any
9amounts which were payable to a different taxing body but were
10erroneously paid to the Regional Transportation Authority or
11county, and not including any amounts that are transferred to
12the STAR Bonds Revenue Fund. Within 10 days after receipt, by
13the Comptroller, of the disbursement certification to the
14Regional Transportation Authority and counties, provided for
15in this Section to be given to the Comptroller by the
16Department, the Comptroller shall cause the orders to be drawn
17for the respective amounts in accordance with the directions
18contained in such certification.
19 When certifying the amount of a monthly disbursement to the
20Regional Transportation Authority or to a county under this
21Section, the Department shall increase or decrease that amount
22by an amount necessary to offset any misallocation of previous
23disbursements. The offset amount shall be the amount
24erroneously disbursed within the 6 months preceding the time a
25misallocation is discovered.
26 The provisions directing the distributions from the

SB2221- 12 -LRB100 13309 AWJ 27836 b
1special fund in the State Treasury provided for in this Section
2and from the Regional Transportation Authority tax fund created
3by Section 4.03 of the Regional Transportation Authority Act
4shall constitute an irrevocable and continuing appropriation
5of all amounts as provided herein. The State Treasurer and
6State Comptroller are hereby authorized to make distributions
7as provided in this Section.
8 In construing any development, redevelopment, annexation,
9preannexation or other lawful agreement in effect prior to
10September 1, 1990, which describes or refers to receipts from a
11county or municipal retailers' occupation tax, use tax or
12service occupation tax which now cannot be imposed, such
13description or reference shall be deemed to include the
14replacement revenue for such abolished taxes, distributed from
15the County and Mass Transit District Fund or Local Government
16Distributive Fund, as the case may be.
17(Source: P.A. 96-939, eff. 6-24-10; 96-1012, eff. 7-7-10;
1897-333, eff. 8-12-11.)
19 Section 10. The Retailers' Occupation Tax Act is amended by
20changing Section 2-12 as follows:
21 (35 ILCS 120/2-12)
22 Sec. 2-12. Location where retailer is deemed to be engaged
23in the business of selling. The purpose of this Section is to
24specify where a retailer is deemed to be engaged in the

SB2221- 13 -LRB100 13309 AWJ 27836 b
1business of selling tangible personal property for the purposes
2of this Act, the Use Tax Act, the Service Use Tax Act, and the
3Service Occupation Tax Act, and for the purpose of collecting
4any other local retailers' occupation tax administered by the
5Department. This Section applies only with respect to the
6particular selling activities described in the following
7paragraphs. The provisions of this Section are not intended to,
8and shall not be interpreted to, affect where a retailer is
9deemed to be engaged in the business of selling with respect to
10any activity that is not specifically described in the
11following paragraphs.
12 (1) If a purchaser who is present at the retailer's
13 place of business, having no prior commitment to the
14 retailer, agrees to purchase and makes payment for tangible
15 personal property at the retailer's place of business, then
16 the transaction shall be deemed an over-the-counter sale
17 occurring at the retailer's same place of business where
18 the purchaser was present and made payment for that
19 tangible personal property if the retailer regularly
20 stocks the purchased tangible personal property or similar
21 tangible personal property in the quantity, or similar
22 quantity, for sale at the retailer's same place of business
23 and then either (i) the purchaser takes possession of the
24 tangible personal property at the same place of business or
25 (ii) the retailer delivers or arranges for the tangible
26 personal property to be delivered to the purchaser.

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1 (2) If a purchaser, having no prior commitment to the
2 retailer, agrees to purchase tangible personal property
3 and makes payment over the phone, in writing, or via the
4 Internet and takes possession of the tangible personal
5 property at the retailer's place of business, then the sale
6 shall be deemed to have occurred at the retailer's place of
7 business where the purchaser takes possession of the
8 property if the retailer regularly stocks the item or
9 similar items in the quantity, or similar quantities,
10 purchased by the purchaser.
11 (3) A retailer is deemed to be engaged in the business
12 of selling food, beverages, or other tangible personal
13 property through a vending machine at the location where
14 the vending machine is located at the time the sale is made
15 if (i) the vending machine is a device operated by coin,
16 currency, credit card, token, coupon or similar device; (2)
17 the food, beverage or other tangible personal property is
18 contained within the vending machine and dispensed from the
19 vending machine; and (3) the purchaser takes possession of
20 the purchased food, beverage or other tangible personal
21 property immediately.
22 (4) Minerals. A producer of coal or other mineral mined
23 in Illinois is deemed to be engaged in the business of
24 selling at the place where the coal or other mineral mined
25 in Illinois is extracted from the earth. With respect to
26 minerals (i) the term "extracted from the earth" means the

SB2221- 15 -LRB100 13309 AWJ 27836 b
1 location at which the coal or other mineral is extracted
2 from the mouth of the mine, and (ii) a "mineral" includes
3 not only coal, but also oil, sand, stone taken from a
4 quarry, gravel and any other thing commonly regarded as a
5 mineral and extracted from the earth. This paragraph does
6 not apply to coal or another mineral when it is delivered
7 or shipped by the seller to the purchaser at a point
8 outside Illinois so that the sale is exempt under the
9 United States Constitution as a sale in interstate or
10 foreign commerce.
11 (5) A retailer selling tangible personal property to a
12 nominal lessee or bailee pursuant to a lease with a dollar
13 or other nominal option to purchase is engaged in the
14 business of selling at the location where the property is
15 first delivered to the lessee or bailee for its intended
16 use.
17 (6) Aircraft fuel. Notwithstanding any other provision
18 of law, the location where a retailer is deemed to be
19 engaged in the business of selling fuel used by an aircraft
20 shall be deemed to be the place where the fuel is delivered
21 to the aircraft. For the purposes of this paragraph, "fuel"
22 has the meaning given to that term in Section 1.19 of the
23 Motor Fuel Tax Law.
24(Source: P.A. 98-1098, eff. 8-26-14; 99-126, eff. 7-23-15.)
25 Section 15. The Counties Code is amended by changing

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1Sections 5-1006, 5-1006.5, 5-1006.7, and 5-1008.5 as follows:
2 (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
3 Sec. 5-1006. Home Rule County Retailers' Occupation Tax
4Law. Any county that is a home rule unit may impose a tax upon
5all persons engaged in the business of selling tangible
6personal property, other than an item of tangible personal
7property titled or registered with an agency of this State's
8government, at retail in the county on the gross receipts from
9such sales made in the course of their business. If imposed,
10this tax shall only be imposed in 1/4% increments. On and after
11September 1, 1991, this additional tax may not be imposed on
12the sales of food for human consumption which is to be consumed
13off the premises where it is sold (other than alcoholic
14beverages, soft drinks and food which has been prepared for
15immediate consumption) and prescription and nonprescription
16medicines, drugs, medical appliances and insulin, urine
17testing materials, syringes and needles used by diabetics. The
18tax imposed by a home rule county pursuant to this Section and
19all civil penalties that may be assessed as an incident thereof
20shall be collected and enforced by the State Department of
21Revenue. The certificate of registration that is issued by the
22Department to a retailer under the Retailers' Occupation Tax
23Act shall permit the retailer to engage in a business that is
24taxable under any ordinance or resolution enacted pursuant to
25this Section without registering separately with the

SB2221- 17 -LRB100 13309 AWJ 27836 b
1Department under such ordinance or resolution or under this
2Section. The Department shall have full power to administer and
3enforce this Section; to collect all taxes and penalties due
4hereunder; to dispose of taxes and penalties so collected in
5the manner hereinafter provided; and to determine all rights to
6credit memoranda arising on account of the erroneous payment of
7tax or penalty hereunder. In the administration of, and
8compliance with, this Section, the Department and persons who
9are subject to this Section shall have the same rights,
10remedies, privileges, immunities, powers and duties, and be
11subject to the same conditions, restrictions, limitations,
12penalties and definitions of terms, and employ the same modes
13of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
141e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
15provisions therein other than the State rate of tax), 4, 5, 5a,
165b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
177, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act
18and Section 3-7 of the Uniform Penalty and Interest Act, as
19fully as if those provisions were set forth herein.
20 No tax may be imposed by a home rule county pursuant to
21this Section unless the county also imposes a tax at the same
22rate pursuant to Section 5-1007.
23 Persons subject to any tax imposed pursuant to the
24authority granted in this Section may reimburse themselves for
25their seller's tax liability hereunder by separately stating
26such tax as an additional charge, which charge may be stated in

SB2221- 18 -LRB100 13309 AWJ 27836 b
1combination, in a single amount, with State tax which sellers
2are required to collect under the Use Tax Act, pursuant to such
3bracket schedules as the Department may prescribe.
4 Whenever the Department determines that a refund should be
5made under this Section to a claimant instead of issuing a
6credit memorandum, the Department shall notify the State
7Comptroller, who shall cause the order to be drawn for the
8amount specified and to the person named in the notification
9from the Department. The refund shall be paid by the State
10Treasurer out of the home rule county retailers' occupation tax
11fund.
12 The Department shall forthwith pay over to the State
13Treasurer, ex officio, as trustee, all taxes and penalties
14collected hereunder.
15 As soon as possible after the first day of each month,
16beginning January 1, 2011, upon certification of the Department
17of Revenue, the Comptroller shall order transferred, and the
18Treasurer shall transfer, to the STAR Bonds Revenue Fund the
19local sales tax increment, as defined in the Innovation
20Development and Economy Act, collected under this Section
21during the second preceding calendar month for sales within a
22STAR bond district.
23 After the monthly transfer to the STAR Bonds Revenue Fund,
24on or before the 25th day of each calendar month, the
25Department shall prepare and certify to the Comptroller the
26disbursement of stated sums of money to named counties, the

SB2221- 19 -LRB100 13309 AWJ 27836 b
1counties to be those from which retailers have paid taxes or
2penalties hereunder to the Department during the second
3preceding calendar month. The amount to be paid to each county
4shall be the amount (not including credit memoranda) collected
5hereunder during the second preceding calendar month by the
6Department plus an amount the Department determines is
7necessary to offset any amounts that were erroneously paid to a
8different taxing body, and not including an amount equal to the
9amount of refunds made during the second preceding calendar
10month by the Department on behalf of such county, and not
11including any amount which the Department determines is
12necessary to offset any amounts which were payable to a
13different taxing body but were erroneously paid to the county,
14and not including any amounts that are transferred to the STAR
15Bonds Revenue Fund. Within 10 days after receipt, by the
16Comptroller, of the disbursement certification to the counties
17provided for in this Section to be given to the Comptroller by
18the Department, the Comptroller shall cause the orders to be
19drawn for the respective amounts in accordance with the
20directions contained in the certification.
21 In addition to the disbursement required by the preceding
22paragraph, an allocation shall be made in March of each year to
23each county that received more than $500,000 in disbursements
24under the preceding paragraph in the preceding calendar year.
25The allocation shall be in an amount equal to the average
26monthly distribution made to each such county under the

SB2221- 20 -LRB100 13309 AWJ 27836 b
1preceding paragraph during the preceding calendar year
2(excluding the 2 months of highest receipts). The distribution
3made in March of each year subsequent to the year in which an
4allocation was made pursuant to this paragraph and the
5preceding paragraph shall be reduced by the amount allocated
6and disbursed under this paragraph in the preceding calendar
7year. The Department shall prepare and certify to the
8Comptroller for disbursement the allocations made in
9accordance with this paragraph.
10 For the purpose of determining the local governmental unit
11whose tax is applicable, a retail sale by a producer of coal or
12other mineral mined in Illinois is a sale at retail at the
13place where the coal or other mineral mined in Illinois is
14extracted from the earth. This paragraph does not apply to coal
15or other mineral when it is delivered or shipped by the seller
16to the purchaser at a point outside Illinois so that the sale
17is exempt under the United States Constitution as a sale in
18interstate or foreign commerce.
19 Notwithstanding any other provision of law, for the purpose
20of determining the local governmental unit whose tax is
21applicable, a retail sale of fuel used by an aircraft shall be
22deemed to be a retail sale at the place where the fuel is
23delivered to the aircraft. For the purposes of this paragraph,
24"fuel" has the meaning given to that term in Section 1.19 of
25the Motor Fuel Tax Law.
26 Nothing in this Section shall be construed to authorize a

SB2221- 21 -LRB100 13309 AWJ 27836 b
1county to impose a tax upon the privilege of engaging in any
2business which under the Constitution of the United States may
3not be made the subject of taxation by this State.
4 An ordinance or resolution imposing or discontinuing a tax
5hereunder or effecting a change in the rate thereof shall be
6adopted and a certified copy thereof filed with the Department
7on or before the first day of June, whereupon the Department
8shall proceed to administer and enforce this Section as of the
9first day of September next following such adoption and filing.
10Beginning January 1, 1992, an ordinance or resolution imposing
11or discontinuing the tax hereunder or effecting a change in the
12rate thereof shall be adopted and a certified copy thereof
13filed with the Department on or before the first day of July,
14whereupon the Department shall proceed to administer and
15enforce this Section as of the first day of October next
16following such adoption and filing. Beginning January 1, 1993,
17an ordinance or resolution imposing or discontinuing the tax
18hereunder or effecting a change in the rate thereof shall be
19adopted and a certified copy thereof filed with the Department
20on or before the first day of October, whereupon the Department
21shall proceed to administer and enforce this Section as of the
22first day of January next following such adoption and filing.
23Beginning April 1, 1998, an ordinance or resolution imposing or
24discontinuing the tax hereunder or effecting a change in the
25rate thereof shall either (i) be adopted and a certified copy
26thereof filed with the Department on or before the first day of

SB2221- 22 -LRB100 13309 AWJ 27836 b
1April, whereupon the Department shall proceed to administer and
2enforce this Section as of the first day of July next following
3the adoption and filing; or (ii) be adopted and a certified
4copy thereof filed with the Department on or before the first
5day of October, whereupon the Department shall proceed to
6administer and enforce this Section as of the first day of
7January next following the adoption and filing.
8 When certifying the amount of a monthly disbursement to a
9county under this Section, the Department shall increase or
10decrease such amount by an amount necessary to offset any
11misallocation of previous disbursements. The offset amount
12shall be the amount erroneously disbursed within the previous 6
13months from the time a misallocation is discovered.
14 This Section shall be known and may be cited as the Home
15Rule County Retailers' Occupation Tax Law.
16(Source: P.A. 99-217, eff. 7-31-15.)
17 (55 ILCS 5/5-1006.5)
18 Sec. 5-1006.5. Special County Retailers' Occupation Tax
19For Public Safety, Public Facilities, or Transportation.
20 (a) The county board of any county may impose a tax upon
21all persons engaged in the business of selling tangible
22personal property, other than personal property titled or
23registered with an agency of this State's government, at retail
24in the county on the gross receipts from the sales made in the
25course of business to provide revenue to be used exclusively

SB2221- 23 -LRB100 13309 AWJ 27836 b
1for public safety, public facility, or transportation purposes
2in that county, if a proposition for the tax has been submitted
3to the electors of that county and approved by a majority of
4those voting on the question. If imposed, this tax shall be
5imposed only in one-quarter percent increments. By resolution,
6the county board may order the proposition to be submitted at
7any election. If the tax is imposed for transportation purposes
8for expenditures for public highways or as authorized under the
9Illinois Highway Code, the county board must publish notice of
10the existence of its long-range highway transportation plan as
11required or described in Section 5-301 of the Illinois Highway
12Code and must make the plan publicly available prior to
13approval of the ordinance or resolution imposing the tax. If
14the tax is imposed for transportation purposes for expenditures
15for passenger rail transportation, the county board must
16publish notice of the existence of its long-range passenger
17rail transportation plan and must make the plan publicly
18available prior to approval of the ordinance or resolution
19imposing the tax.
20 If a tax is imposed for public facilities purposes, then
21the name of the project may be included in the proposition at
22the discretion of the county board as determined in the
23enabling resolution. For example, the "XXX Nursing Home" or the
24"YYY Museum".
25 The county clerk shall certify the question to the proper
26election authority, who shall submit the proposition at an

SB2221- 24 -LRB100 13309 AWJ 27836 b
1election in accordance with the general election law.
2 (1) The proposition for public safety purposes shall be
3 in substantially the following form:
4 "To pay for public safety purposes, shall (name of
5 county) be authorized to impose an increase on its share of
6 local sales taxes by (insert rate)?"
7 As additional information on the ballot below the
8 question shall appear the following:
9 "This would mean that a consumer would pay an
10 additional (insert amount) in sales tax for every $100 of
11 tangible personal property bought at retail."
12 The county board may also opt to establish a sunset
13 provision at which time the additional sales tax would
14 cease being collected, if not terminated earlier by a vote
15 of the county board. If the county board votes to include a
16 sunset provision, the proposition for public safety
17 purposes shall be in substantially the following form:
18 "To pay for public safety purposes, shall (name of
19 county) be authorized to impose an increase on its share of
20 local sales taxes by (insert rate) for a period not to
21 exceed (insert number of years)?"
22 As additional information on the ballot below the
23 question shall appear the following:
24 "This would mean that a consumer would pay an
25 additional (insert amount) in sales tax for every $100 of
26 tangible personal property bought at retail. If imposed,

SB2221- 25 -LRB100 13309 AWJ 27836 b
1 the additional tax would cease being collected at the end
2 of (insert number of years), if not terminated earlier by a
3 vote of the county board."
4 For the purposes of the paragraph, "public safety
5 purposes" means crime prevention, detention, fire
6 fighting, police, medical, ambulance, or other emergency
7 services.
8 Votes shall be recorded as "Yes" or "No".
9 Beginning on the January 1 or July 1, whichever is
10 first, that occurs not less than 30 days after May 31, 2015
11 (the effective date of Public Act 99-4), Adams County may
12 impose a public safety retailers' occupation tax and
13 service occupation tax at the rate of 0.25%, as provided in
14 the referendum approved by the voters on April 7, 2015,
15 notwithstanding the omission of the additional information
16 that is otherwise required to be printed on the ballot
17 below the question pursuant to this item (1).
18 (2) The proposition for transportation purposes shall
19 be in substantially the following form:
20 "To pay for improvements to roads and other
21 transportation purposes, shall (name of county) be
22 authorized to impose an increase on its share of local
23 sales taxes by (insert rate)?"
24 As additional information on the ballot below the
25 question shall appear the following:
26 "This would mean that a consumer would pay an

SB2221- 26 -LRB100 13309 AWJ 27836 b
1 additional (insert amount) in sales tax for every $100 of
2 tangible personal property bought at retail."
3 The county board may also opt to establish a sunset
4 provision at which time the additional sales tax would
5 cease being collected, if not terminated earlier by a vote
6 of the county board. If the county board votes to include a
7 sunset provision, the proposition for transportation
8 purposes shall be in substantially the following form:
9 "To pay for road improvements and other transportation
10 purposes, shall (name of county) be authorized to impose an
11 increase on its share of local sales taxes by (insert rate)
12 for a period not to exceed (insert number of years)?"
13 As additional information on the ballot below the
14 question shall appear the following:
15 "This would mean that a consumer would pay an
16 additional (insert amount) in sales tax for every $100 of
17 tangible personal property bought at retail. If imposed,
18 the additional tax would cease being collected at the end
19 of (insert number of years), if not terminated earlier by a
20 vote of the county board."
21 For the purposes of this paragraph, transportation
22 purposes means construction, maintenance, operation, and
23 improvement of public highways, any other purpose for which
24 a county may expend funds under the Illinois Highway Code,
25 and passenger rail transportation.
26 The votes shall be recorded as "Yes" or "No".

SB2221- 27 -LRB100 13309 AWJ 27836 b
1 (3) The proposition for public facilities purposes
2 shall be in substantially the following form:
3 "To pay for public facilities purposes, shall (name of
4 county) be authorized to impose an increase on its share of
5 local sales taxes by (insert rate)?"
6 As additional information on the ballot below the
7 question shall appear the following:
8 "This would mean that a consumer would pay an
9 additional (insert amount) in sales tax for every $100 of
10 tangible personal property bought at retail."
11 The county board may also opt to establish a sunset
12 provision at which time the additional sales tax would
13 cease being collected, if not terminated earlier by a vote
14 of the county board. If the county board votes to include a
15 sunset provision, the proposition for public facilities
16 purposes shall be in substantially the following form:
17 "To pay for public facilities purposes, shall (name of
18 county) be authorized to impose an increase on its share of
19 local sales taxes by (insert rate) for a period not to
20 exceed (insert number of years)?"
21 As additional information on the ballot below the
22 question shall appear the following:
23 "This would mean that a consumer would pay an
24 additional (insert amount) in sales tax for every $100 of
25 tangible personal property bought at retail. If imposed,
26 the additional tax would cease being collected at the end

SB2221- 28 -LRB100 13309 AWJ 27836 b
1 of (insert number of years), if not terminated earlier by a
2 vote of the county board."
3 For purposes of this Section, "public facilities
4 purposes" means the acquisition, development,
5 construction, reconstruction, rehabilitation, improvement,
6 financing, architectural planning, and installation of
7 capital facilities consisting of buildings, structures,
8 and durable equipment and for the acquisition and
9 improvement of real property and interest in real property
10 required, or expected to be required, in connection with
11 the public facilities, for use by the county for the
12 furnishing of governmental services to its citizens,
13 including but not limited to museums and nursing homes.
14 The votes shall be recorded as "Yes" or "No".
15 If a majority of the electors voting on the proposition
16vote in favor of it, the county may impose the tax. A county
17may not submit more than one proposition authorized by this
18Section to the electors at any one time.
19 This additional tax may not be imposed on the sales of food
20for human consumption that is to be consumed off the premises
21where it is sold (other than alcoholic beverages, soft drinks,
22and food which has been prepared for immediate consumption) and
23prescription and non-prescription medicines, drugs, medical
24appliances and insulin, urine testing materials, syringes, and
25needles used by diabetics. The tax imposed by a county under
26this Section and all civil penalties that may be assessed as an

SB2221- 29 -LRB100 13309 AWJ 27836 b
1incident of the tax shall be collected and enforced by the
2Illinois Department of Revenue and deposited into a special
3fund created for that purpose. The certificate of registration
4that is issued by the Department to a retailer under the
5Retailers' Occupation Tax Act shall permit the retailer to
6engage in a business that is taxable without registering
7separately with the Department under an ordinance or resolution
8under this Section. The Department has full power to administer
9and enforce this Section, to collect all taxes and penalties
10due under this Section, to dispose of taxes and penalties so
11collected in the manner provided in this Section, and to
12determine all rights to credit memoranda arising on account of
13the erroneous payment of a tax or penalty under this Section.
14In the administration of and compliance with this Section, the
15Department and persons who are subject to this Section shall
16(i) have the same rights, remedies, privileges, immunities,
17powers, and duties, (ii) be subject to the same conditions,
18restrictions, limitations, penalties, and definitions of
19terms, and (iii) employ the same modes of procedure as are
20prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
211n, 2 through 2-70 (in respect to all provisions contained in
22those Sections other than the State rate of tax), 2a, 2b, 2c, 3
23(except provisions relating to transaction returns and quarter
24monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
255j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13
26of the Retailers' Occupation Tax Act and Section 3-7 of the

SB2221- 30 -LRB100 13309 AWJ 27836 b
1Uniform Penalty and Interest Act as if those provisions were
2set forth in this Section.
3 Persons subject to any tax imposed under the authority
4granted in this Section may reimburse themselves for their
5sellers' tax liability by separately stating the tax as an
6additional charge, which charge may be stated in combination,
7in a single amount, with State tax which sellers are required
8to collect under the Use Tax Act, pursuant to such bracketed
9schedules as the Department may prescribe.
10 Whenever the Department determines that a refund should be
11made under this Section to a claimant instead of issuing a
12credit memorandum, the Department shall notify the State
13Comptroller, who shall cause the order to be drawn for the
14amount specified and to the person named in the notification
15from the Department. The refund shall be paid by the State
16Treasurer out of the County Public Safety or Transportation
17Retailers' Occupation Tax Fund.
18 (b) If a tax has been imposed under subsection (a), a
19service occupation tax shall also be imposed at the same rate
20upon all persons engaged, in the county, in the business of
21making sales of service, who, as an incident to making those
22sales of service, transfer tangible personal property within
23the county as an incident to a sale of service. This tax may
24not be imposed on sales of food for human consumption that is
25to be consumed off the premises where it is sold (other than
26alcoholic beverages, soft drinks, and food prepared for

SB2221- 31 -LRB100 13309 AWJ 27836 b
1immediate consumption) and prescription and non-prescription
2medicines, drugs, medical appliances and insulin, urine
3testing materials, syringes, and needles used by diabetics. The
4tax imposed under this subsection and all civil penalties that
5may be assessed as an incident thereof shall be collected and
6enforced by the Department of Revenue. The Department has full
7power to administer and enforce this subsection; to collect all
8taxes and penalties due hereunder; to dispose of taxes and
9penalties so collected in the manner hereinafter provided; and
10to determine all rights to credit memoranda arising on account
11of the erroneous payment of tax or penalty hereunder. In the
12administration of, and compliance with this subsection, the
13Department and persons who are subject to this paragraph shall
14(i) have the same rights, remedies, privileges, immunities,
15powers, and duties, (ii) be subject to the same conditions,
16restrictions, limitations, penalties, exclusions, exemptions,
17and definitions of terms, and (iii) employ the same modes of
18procedure as are prescribed in Sections 2 (except that the
19reference to State in the definition of supplier maintaining a
20place of business in this State shall mean the county), 2a, 2b,
212c, 3 through 3-50 (in respect to all provisions therein other
22than the State rate of tax), 4 (except that the reference to
23the State shall be to the county), 5, 7, 8 (except that the
24jurisdiction to which the tax shall be a debt to the extent
25indicated in that Section 8 shall be the county), 9 (except as
26to the disposition of taxes and penalties collected), 10, 11,

SB2221- 32 -LRB100 13309 AWJ 27836 b
112 (except the reference therein to Section 2b of the
2Retailers' Occupation Tax Act), 13 (except that any reference
3to the State shall mean the county), Section 15, 16, 17, 18, 19
4and 20 of the Service Occupation Tax Act and Section 3-7 of the
5Uniform Penalty and Interest Act, as fully as if those
6provisions were set forth herein.
7 Persons subject to any tax imposed under the authority
8granted in this subsection may reimburse themselves for their
9serviceman's tax liability by separately stating the tax as an
10additional charge, which charge may be stated in combination,
11in a single amount, with State tax that servicemen are
12authorized to collect under the Service Use Tax Act, in
13accordance with such bracket schedules as the Department may
14prescribe.
15 Whenever the Department determines that a refund should be
16made under this subsection to a claimant instead of issuing a
17credit memorandum, the Department shall notify the State
18Comptroller, who shall cause the warrant to be drawn for the
19amount specified, and to the person named, in the notification
20from the Department. The refund shall be paid by the State
21Treasurer out of the County Public Safety or Transportation
22Retailers' Occupation Fund.
23 Nothing in this subsection shall be construed to authorize
24the county to impose a tax upon the privilege of engaging in
25any business which under the Constitution of the United States
26may not be made the subject of taxation by the State.

SB2221- 33 -LRB100 13309 AWJ 27836 b
1 (c) The Department shall immediately pay over to the State
2Treasurer, ex officio, as trustee, all taxes and penalties
3collected under this Section to be deposited into the County
4Public Safety or Transportation Retailers' Occupation Tax
5Fund, which shall be an unappropriated trust fund held outside
6of the State treasury.
7 As soon as possible after the first day of each month,
8beginning January 1, 2011, upon certification of the Department
9of Revenue, the Comptroller shall order transferred, and the
10Treasurer shall transfer, to the STAR Bonds Revenue Fund the
11local sales tax increment, as defined in the Innovation
12Development and Economy Act, collected under this Section
13during the second preceding calendar month for sales within a
14STAR bond district.
15 After the monthly transfer to the STAR Bonds Revenue Fund,
16on or before the 25th day of each calendar month, the
17Department shall prepare and certify to the Comptroller the
18disbursement of stated sums of money to the counties from which
19retailers have paid taxes or penalties to the Department during
20the second preceding calendar month. The amount to be paid to
21each county, and deposited by the county into its special fund
22created for the purposes of this Section, shall be the amount
23(not including credit memoranda) collected under this Section
24during the second preceding calendar month by the Department
25plus an amount the Department determines is necessary to offset
26any amounts that were erroneously paid to a different taxing

SB2221- 34 -LRB100 13309 AWJ 27836 b
1body, and not including (i) an amount equal to the amount of
2refunds made during the second preceding calendar month by the
3Department on behalf of the county, (ii) any amount that the
4Department determines is necessary to offset any amounts that
5were payable to a different taxing body but were erroneously
6paid to the county, and (iii) any amounts that are transferred
7to the STAR Bonds Revenue Fund. Within 10 days after receipt by
8the Comptroller of the disbursement certification to the
9counties provided for in this Section to be given to the
10Comptroller by the Department, the Comptroller shall cause the
11orders to be drawn for the respective amounts in accordance
12with directions contained in the certification.
13 In addition to the disbursement required by the preceding
14paragraph, an allocation shall be made in March of each year to
15each county that received more than $500,000 in disbursements
16under the preceding paragraph in the preceding calendar year.
17The allocation shall be in an amount equal to the average
18monthly distribution made to each such county under the
19preceding paragraph during the preceding calendar year
20(excluding the 2 months of highest receipts). The distribution
21made in March of each year subsequent to the year in which an
22allocation was made pursuant to this paragraph and the
23preceding paragraph shall be reduced by the amount allocated
24and disbursed under this paragraph in the preceding calendar
25year. The Department shall prepare and certify to the
26Comptroller for disbursement the allocations made in

SB2221- 35 -LRB100 13309 AWJ 27836 b
1accordance with this paragraph.
2 A county may direct, by ordinance, that all or a portion of
3the taxes and penalties collected under the Special County
4Retailers' Occupation Tax For Public Safety or Transportation
5be deposited into the Transportation Development Partnership
6Trust Fund.
7 (d) For the purpose of determining the local governmental
8unit whose tax is applicable, a retail sale by a producer of
9coal or another mineral mined in Illinois is a sale at retail
10at the place where the coal or other mineral mined in Illinois
11is extracted from the earth. This paragraph does not apply to
12coal or another mineral when it is delivered or shipped by the
13seller to the purchaser at a point outside Illinois so that the
14sale is exempt under the United States Constitution as a sale
15in interstate or foreign commerce.
16 Notwithstanding any other provision of law, for the purpose
17of determining the local governmental unit whose tax is
18applicable, a retail sale of fuel used by an aircraft shall be
19deemed to be a retail sale at the place where the fuel is
20delivered to the aircraft. For the purposes of this paragraph,
21"fuel" has the meaning given to that term in Section 1.19 of
22the Motor Fuel Tax Law.
23 (e) Nothing in this Section shall be construed to authorize
24a county to impose a tax upon the privilege of engaging in any
25business that under the Constitution of the United States may
26not be made the subject of taxation by this State.

SB2221- 36 -LRB100 13309 AWJ 27836 b
1 (e-5) If a county imposes a tax under this Section, the
2county board may, by ordinance, discontinue or lower the rate
3of the tax. If the county board lowers the tax rate or
4discontinues the tax, a referendum must be held in accordance
5with subsection (a) of this Section in order to increase the
6rate of the tax or to reimpose the discontinued tax.
7 (f) Beginning April 1, 1998 and through December 31, 2013,
8the results of any election authorizing a proposition to impose
9a tax under this Section or effecting a change in the rate of
10tax, or any ordinance lowering the rate or discontinuing the
11tax, shall be certified by the county clerk and filed with the
12Illinois Department of Revenue either (i) on or before the
13first day of April, whereupon the Department shall proceed to
14administer and enforce the tax as of the first day of July next
15following the filing; or (ii) on or before the first day of
16October, whereupon the Department shall proceed to administer
17and enforce the tax as of the first day of January next
18following the filing.
19 Beginning January 1, 2014, the results of any election
20authorizing a proposition to impose a tax under this Section or
21effecting an increase in the rate of tax, along with the
22ordinance adopted to impose the tax or increase the rate of the
23tax, or any ordinance adopted to lower the rate or discontinue
24the tax, shall be certified by the county clerk and filed with
25the Illinois Department of Revenue either (i) on or before the
26first day of May, whereupon the Department shall proceed to

SB2221- 37 -LRB100 13309 AWJ 27836 b
1administer and enforce the tax as of the first day of July next
2following the adoption and filing; or (ii) on or before the
3first day of October, whereupon the Department shall proceed to
4administer and enforce the tax as of the first day of January
5next following the adoption and filing.
6 (g) When certifying the amount of a monthly disbursement to
7a county under this Section, the Department shall increase or
8decrease the amounts by an amount necessary to offset any
9miscalculation of previous disbursements. The offset amount
10shall be the amount erroneously disbursed within the previous 6
11months from the time a miscalculation is discovered.
12 (h) This Section may be cited as the "Special County
13Occupation Tax For Public Safety, Public Facilities, or
14Transportation Law".
15 (i) For purposes of this Section, "public safety" includes,
16but is not limited to, crime prevention, detention, fire
17fighting, police, medical, ambulance, or other emergency
18services. The county may share tax proceeds received under this
19Section for public safety purposes, including proceeds
20received before August 4, 2009 (the effective date of Public
21Act 96-124), with any fire protection district located in the
22county. For the purposes of this Section, "transportation"
23includes, but is not limited to, the construction, maintenance,
24operation, and improvement of public highways, any other
25purpose for which a county may expend funds under the Illinois
26Highway Code, and passenger rail transportation. For the

SB2221- 38 -LRB100 13309 AWJ 27836 b
1purposes of this Section, "public facilities purposes"
2includes, but is not limited to, the acquisition, development,
3construction, reconstruction, rehabilitation, improvement,
4financing, architectural planning, and installation of capital
5facilities consisting of buildings, structures, and durable
6equipment and for the acquisition and improvement of real
7property and interest in real property required, or expected to
8be required, in connection with the public facilities, for use
9by the county for the furnishing of governmental services to
10its citizens, including but not limited to museums and nursing
11homes.
12 (j) The Department may promulgate rules to implement Public
13Act 95-1002 only to the extent necessary to apply the existing
14rules for the Special County Retailers' Occupation Tax for
15Public Safety to this new purpose for public facilities.
16(Source: P.A. 98-584, eff. 8-27-13; 99-4, eff. 5-31-15; 99-217,
17eff. 7-31-15; 99-642, eff. 7-28-16.)
18 (55 ILCS 5/5-1006.7)
19 Sec. 5-1006.7. School facility occupation taxes.
20 (a) In any county, a tax shall be imposed upon all persons
21engaged in the business of selling tangible personal property,
22other than personal property titled or registered with an
23agency of this State's government, at retail in the county on
24the gross receipts from the sales made in the course of
25business to provide revenue to be used exclusively for school

SB2221- 39 -LRB100 13309 AWJ 27836 b
1facility purposes if a proposition for the tax has been
2submitted to the electors of that county and approved by a
3majority of those voting on the question as provided in
4subsection (c). The tax under this Section shall be imposed
5only in one-quarter percent increments and may not exceed 1%.
6 This additional tax may not be imposed on the sale of food
7for human consumption that is to be consumed off the premises
8where it is sold (other than alcoholic beverages, soft drinks,
9and food that has been prepared for immediate consumption) and
10prescription and non-prescription medicines, drugs, medical
11appliances and insulin, urine testing materials, syringes and
12needles used by diabetics. The Department of Revenue has full
13power to administer and enforce this subsection, to collect all
14taxes and penalties due under this subsection, to dispose of
15taxes and penalties so collected in the manner provided in this
16subsection, and to determine all rights to credit memoranda
17arising on account of the erroneous payment of a tax or penalty
18under this subsection. The Department shall deposit all taxes
19and penalties collected under this subsection into a special
20fund created for that purpose.
21 In the administration of and compliance with this
22subsection, the Department and persons who are subject to this
23subsection (i) have the same rights, remedies, privileges,
24immunities, powers, and duties, (ii) are subject to the same
25conditions, restrictions, limitations, penalties, and
26definitions of terms, and (iii) shall employ the same modes of

SB2221- 40 -LRB100 13309 AWJ 27836 b
1procedure as are set forth in Sections 1 through 1o, 2 through
22-70 (in respect to all provisions contained in those Sections
3other than the State rate of tax), 2a through 2h, 3 (except as
4to the disposition of taxes and penalties collected), 4, 5, 5a,
55b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
67, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation
7Tax Act and all provisions of the Uniform Penalty and Interest
8Act as if those provisions were set forth in this subsection.
9 The certificate of registration that is issued by the
10Department to a retailer under the Retailers' Occupation Tax
11Act permits the retailer to engage in a business that is
12taxable without registering separately with the Department
13under an ordinance or resolution under this subsection.
14 Persons subject to any tax imposed under the authority
15granted in this subsection may reimburse themselves for their
16seller's tax liability by separately stating that tax as an
17additional charge, which may be stated in combination, in a
18single amount, with State tax that sellers are required to
19collect under the Use Tax Act, pursuant to any bracketed
20schedules set forth by the Department.
21 (b) If a tax has been imposed under subsection (a), then a
22service occupation tax must also be imposed at the same rate
23upon all persons engaged, in the county, in the business of
24making sales of service, who, as an incident to making those
25sales of service, transfer tangible personal property within
26the county as an incident to a sale of service.

SB2221- 41 -LRB100 13309 AWJ 27836 b
1 This tax may not be imposed on sales of food for human
2consumption that is to be consumed off the premises where it is
3sold (other than alcoholic beverages, soft drinks, and food
4prepared for immediate consumption) and prescription and
5non-prescription medicines, drugs, medical appliances and
6insulin, urine testing materials, syringes, and needles used by
7diabetics.
8 The tax imposed under this subsection and all civil
9penalties that may be assessed as an incident thereof shall be
10collected and enforced by the Department and deposited into a
11special fund created for that purpose. The Department has full
12power to administer and enforce this subsection, to collect all
13taxes and penalties due under this subsection, to dispose of
14taxes and penalties so collected in the manner provided in this
15subsection, and to determine all rights to credit memoranda
16arising on account of the erroneous payment of a tax or penalty
17under this subsection.
18 In the administration of and compliance with this
19subsection, the Department and persons who are subject to this
20subsection shall (i) have the same rights, remedies,
21privileges, immunities, powers and duties, (ii) be subject to
22the same conditions, restrictions, limitations, penalties and
23definition of terms, and (iii) employ the same modes of
24procedure as are set forth in Sections 2 (except that that
25reference to State in the definition of supplier maintaining a
26place of business in this State means the county), 2a through

SB2221- 42 -LRB100 13309 AWJ 27836 b
12d, 3 through 3-50 (in respect to all provisions contained in
2those Sections other than the State rate of tax), 4 (except
3that the reference to the State shall be to the county), 5, 7,
48 (except that the jurisdiction to which the tax is a debt to
5the extent indicated in that Section 8 is the county), 9
6(except as to the disposition of taxes and penalties
7collected), 10, 11, 12 (except the reference therein to Section
82b of the Retailers' Occupation Tax Act), 13 (except that any
9reference to the State means the county), Section 15, 16, 17,
1018, 19, and 20 of the Service Occupation Tax Act and all
11provisions of the Uniform Penalty and Interest Act, as fully as
12if those provisions were set forth herein.
13 Persons subject to any tax imposed under the authority
14granted in this subsection may reimburse themselves for their
15serviceman's tax liability by separately stating the tax as an
16additional charge, which may be stated in combination, in a
17single amount, with State tax that servicemen are authorized to
18collect under the Service Use Tax Act, pursuant to any
19bracketed schedules set forth by the Department.
20 (c) The tax under this Section may not be imposed until the
21question of imposing the tax has been submitted to the electors
22of the county at a regular election and approved by a majority
23of the electors voting on the question. For all regular
24elections held prior to August 23, 2011 (the effective date of
25Public Act 97-542), upon a resolution by the county board or a
26resolution by school district boards that represent at least

SB2221- 43 -LRB100 13309 AWJ 27836 b
151% of the student enrollment within the county, the county
2board must certify the question to the proper election
3authority in accordance with the Election Code.
4 For all regular elections held prior to August 23, 2011
5(the effective date of Public Act 97-542), the election
6authority must submit the question in substantially the
7following form:
8 Shall (name of county) be authorized to impose a
9 retailers' occupation tax and a service occupation tax
10 (commonly referred to as a "sales tax") at a rate of
11 (insert rate) to be used exclusively for school facility
12 purposes?
13The election authority must record the votes as "Yes" or "No".
14 If a majority of the electors voting on the question vote
15in the affirmative, then the county may, thereafter, impose the
16tax.
17 For all regular elections held on or after August 23, 2011
18(the effective date of Public Act 97-542), the regional
19superintendent of schools for the county must, upon receipt of
20a resolution or resolutions of school district boards that
21represent more than 50% of the student enrollment within the
22county, certify the question to the proper election authority
23for submission to the electors of the county at the next
24regular election at which the question lawfully may be
25submitted to the electors, all in accordance with the Election
26Code.

SB2221- 44 -LRB100 13309 AWJ 27836 b
1 For all regular elections held on or after August 23, 2011
2(the effective date of Public Act 97-542), the election
3authority must submit the question in substantially the
4following form:
5 Shall a retailers' occupation tax and a service
6 occupation tax (commonly referred to as a "sales tax") be
7 imposed in (name of county) at a rate of (insert rate) to
8 be used exclusively for school facility purposes?
9The election authority must record the votes as "Yes" or "No".
10 If a majority of the electors voting on the question vote
11in the affirmative, then the tax shall be imposed at the rate
12set forth in the question.
13 For the purposes of this subsection (c), "enrollment" means
14the head count of the students residing in the county on the
15last school day of September of each year, which must be
16reported on the Illinois State Board of Education Public School
17Fall Enrollment/Housing Report.
18 (d) The Department shall immediately pay over to the State
19Treasurer, ex officio, as trustee, all taxes and penalties
20collected under this Section to be deposited into the School
21Facility Occupation Tax Fund, which shall be an unappropriated
22trust fund held outside the State treasury.
23 On or before the 25th day of each calendar month, the
24Department shall prepare and certify to the Comptroller the
25disbursement of stated sums of money to the regional
26superintendents of schools in counties from which retailers or

SB2221- 45 -LRB100 13309 AWJ 27836 b
1servicemen have paid taxes or penalties to the Department
2during the second preceding calendar month. The amount to be
3paid to each regional superintendent of schools and disbursed
4to him or her in accordance with Section 3-14.31 of the School
5Code, is equal to the amount (not including credit memoranda)
6collected from the county under this Section during the second
7preceding calendar month by the Department, (i) less 2% of that
8amount, which shall be deposited into the Tax Compliance and
9Administration Fund and shall be used by the Department,
10subject to appropriation, to cover the costs of the Department
11in administering and enforcing the provisions of this Section,
12on behalf of the county, (ii) plus an amount that the
13Department determines is necessary to offset any amounts that
14were erroneously paid to a different taxing body; (iii) less an
15amount equal to the amount of refunds made during the second
16preceding calendar month by the Department on behalf of the
17county; and (iv) less any amount that the Department determines
18is necessary to offset any amounts that were payable to a
19different taxing body but were erroneously paid to the county.
20When certifying the amount of a monthly disbursement to a
21regional superintendent of schools under this Section, the
22Department shall increase or decrease the amounts by an amount
23necessary to offset any miscalculation of previous
24disbursements within the previous 6 months from the time a
25miscalculation is discovered.
26 Within 10 days after receipt by the Comptroller from the

SB2221- 46 -LRB100 13309 AWJ 27836 b
1Department of the disbursement certification to the regional
2superintendents of the schools provided for in this Section,
3the Comptroller shall cause the orders to be drawn for the
4respective amounts in accordance with directions contained in
5the certification.
6 If the Department determines that a refund should be made
7under this Section to a claimant instead of issuing a credit
8memorandum, then the Department shall notify the Comptroller,
9who shall cause the order to be drawn for the amount specified
10and to the person named in the notification from the
11Department. The refund shall be paid by the Treasurer out of
12the School Facility Occupation Tax Fund.
13 (e) For the purposes of determining the local governmental
14unit whose tax is applicable, a retail sale by a producer of
15coal or another mineral mined in Illinois is a sale at retail
16at the place where the coal or other mineral mined in Illinois
17is extracted from the earth. This subsection does not apply to
18coal or another mineral when it is delivered or shipped by the
19seller to the purchaser at a point outside Illinois so that the
20sale is exempt under the United States Constitution as a sale
21in interstate or foreign commerce.
22 Notwithstanding any other provision of law, for the purpose
23of determining the local governmental unit whose tax is
24applicable, a retail sale of fuel used by an aircraft shall be
25deemed to be a retail sale at the place where the fuel is
26delivered to the aircraft. For the purposes of this paragraph,

SB2221- 47 -LRB100 13309 AWJ 27836 b
1"fuel" has the meaning given to that term in Section 1.19 of
2the Motor Fuel Tax Law.
3 (f) Nothing in this Section may be construed to authorize a
4tax to be imposed upon the privilege of engaging in any
5business that under the Constitution of the United States may
6not be made the subject of taxation by this State.
7 (g) If a county board imposes a tax under this Section
8pursuant to a referendum held before August 23, 2011 (the
9effective date of Public Act 97-542) at a rate below the rate
10set forth in the question approved by a majority of electors of
11that county voting on the question as provided in subsection
12(c), then the county board may, by ordinance, increase the rate
13of the tax up to the rate set forth in the question approved by
14a majority of electors of that county voting on the question as
15provided in subsection (c). If a county board imposes a tax
16under this Section pursuant to a referendum held before August
1723, 2011 (the effective date of Public Act 97-542), then the
18board may, by ordinance, discontinue or reduce the rate of the
19tax. If a tax is imposed under this Section pursuant to a
20referendum held on or after August 23, 2011 (the effective date
21of Public Act 97-542), then the county board may reduce or
22discontinue the tax, but only in accordance with subsection
23(h-5) of this Section. If, however, a school board issues bonds
24that are secured by the proceeds of the tax under this Section,
25then the county board may not reduce the tax rate or
26discontinue the tax if that rate reduction or discontinuance

SB2221- 48 -LRB100 13309 AWJ 27836 b
1would adversely affect the school board's ability to pay the
2principal and interest on those bonds as they become due or
3necessitate the extension of additional property taxes to pay
4the principal and interest on those bonds. If the county board
5reduces the tax rate or discontinues the tax, then a referendum
6must be held in accordance with subsection (c) of this Section
7in order to increase the rate of the tax or to reimpose the
8discontinued tax.
9 Until January 1, 2014, the results of any election that
10imposes, reduces, or discontinues a tax under this Section must
11be certified by the election authority, and any ordinance that
12increases or lowers the rate or discontinues the tax must be
13certified by the county clerk and, in each case, filed with the
14Illinois Department of Revenue either (i) on or before the
15first day of April, whereupon the Department shall proceed to
16administer and enforce the tax or change in the rate as of the
17first day of July next following the filing; or (ii) on or
18before the first day of October, whereupon the Department shall
19proceed to administer and enforce the tax or change in the rate
20as of the first day of January next following the filing.
21 Beginning January 1, 2014, the results of any election that
22imposes, reduces, or discontinues a tax under this Section must
23be certified by the election authority, and any ordinance that
24increases or lowers the rate or discontinues the tax must be
25certified by the county clerk and, in each case, filed with the
26Illinois Department of Revenue either (i) on or before the

SB2221- 49 -LRB100 13309 AWJ 27836 b
1first day of May, whereupon the Department shall proceed to
2administer and enforce the tax or change in the rate as of the
3first day of July next following the filing; or (ii) on or
4before the first day of October, whereupon the Department shall
5proceed to administer and enforce the tax or change in the rate
6as of the first day of January next following the filing.
7 (h) For purposes of this Section, "school facility
8purposes" means (i) the acquisition, development,
9construction, reconstruction, rehabilitation, improvement,
10financing, architectural planning, and installation of capital
11facilities consisting of buildings, structures, and durable
12equipment and for the acquisition and improvement of real
13property and interest in real property required, or expected to
14be required, in connection with the capital facilities and (ii)
15the payment of bonds or other obligations heretofore or
16hereafter issued, including bonds or other obligations
17heretofore or hereafter issued to refund or to continue to
18refund bonds or other obligations issued, for school facility
19purposes, provided that the taxes levied to pay those bonds are
20abated by the amount of the taxes imposed under this Section
21that are used to pay those bonds. "School-facility purposes"
22also includes fire prevention, safety, energy conservation,
23accessibility, school security, and specified repair purposes
24set forth under Section 17-2.11 of the School Code.
25 (h-5) A county board in a county where a tax has been
26imposed under this Section pursuant to a referendum held on or

SB2221- 50 -LRB100 13309 AWJ 27836 b
1after August 23, 2011 (the effective date of Public Act 97-542)
2may, by ordinance or resolution, submit to the voters of the
3county the question of reducing or discontinuing the tax. In
4the ordinance or resolution, the county board shall certify the
5question to the proper election authority in accordance with
6the Election Code. The election authority must submit the
7question in substantially the following form:
8 Shall the school facility retailers' occupation tax
9 and service occupation tax (commonly referred to as the
10 "school facility sales tax") currently imposed in (name of
11 county) at a rate of (insert rate) be (reduced to (insert
12 rate))(discontinued)?
13If a majority of the electors voting on the question vote in
14the affirmative, then, subject to the provisions of subsection
15(g) of this Section, the tax shall be reduced or discontinued
16as set forth in the question.
17 (i) This Section does not apply to Cook County.
18 (j) This Section may be cited as the County School Facility
19Occupation Tax Law.
20(Source: P.A. 98-584, eff. 8-27-13; 99-143, eff. 7-27-15;
2199-217, eff. 7-31-15; 99-642, eff. 7-28-16.)
22 (55 ILCS 5/5-1008.5)
23 Sec. 5-1008.5. Use and occupation taxes.
24 (a) The Rock Island County Board may adopt a resolution
25that authorizes a referendum on the question of whether the

SB2221- 51 -LRB100 13309 AWJ 27836 b
1county shall be authorized to impose a retailers' occupation
2tax, a service occupation tax, and a use tax at a rate of 1/4 of
31% on behalf of the economic development activities of Rock
4Island County and communities located within the county. The
5county board shall certify the question to the proper election
6authorities who shall submit the question to the voters of the
7county at the next regularly scheduled election in accordance
8with the general election law. The question shall be in
9substantially the following form:
10 Shall Rock Island County be authorized to impose a
11 retailers' occupation tax, a service occupation tax, and a
12 use tax at the rate of 1/4 of 1% for the sole purpose of
13 economic development activities, including creation and
14 retention of job opportunities, support of affordable
15 housing opportunities, and enhancement of quality of life
16 improvements?
17 Votes shall be recorded as "yes" or "no". If a majority of
18all votes cast on the proposition are in favor of the
19proposition, the county is authorized to impose the tax.
20 (b) The county shall impose the retailers' occupation tax
21upon all persons engaged in the business of selling tangible
22personal property at retail in the county, at the rate approved
23by referendum, on the gross receipts from the sales made in the
24course of those businesses within the county. This additional
25tax may not be imposed on the sale of food for human
26consumption that is to be consumed off the premises where it is

SB2221- 52 -LRB100 13309 AWJ 27836 b
1sold (other than alcoholic beverages, soft drinks, and food
2that has been prepared for immediate consumption) and
3prescription and non-prescription medicines, drugs, medical
4appliances and insulin, urine testing materials, syringes, and
5needles used by diabetics. The tax imposed under this Section
6and all civil penalties that may be assessed as an incident of
7the tax shall be collected and enforced by the Department of
8Revenue. The Department has full power to administer and
9enforce this Section; to collect all taxes and penalties so
10collected in the manner provided in this Section; and to
11determine all rights to credit memoranda arising on account of
12the erroneous payment of tax or penalty under this Section. In
13the administration of, and compliance with, this Section, the
14Department and persons who are subject to this Section shall
15(i) have the same rights, remedies, privileges, immunities,
16powers and duties, (ii) be subject to the same conditions,
17restrictions, limitations, penalties, exclusions, exemptions,
18and definitions of terms, and (iii) employ the same modes of
19procedure as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
201e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to
21all provisions other than the State rate of tax), 2-15 through
222-70, 2a, 2b, 2c, 3 (except as to the disposition of taxes and
23penalties collected and provisions related to quarter monthly
24payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6,
256a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
26Occupation Tax Act and Section 3-7 of the Uniform Penalty and

SB2221- 53 -LRB100 13309 AWJ 27836 b
1Interest Act, as fully as if those provisions were set forth in
2this subsection.
3 Persons subject to any tax imposed under this subsection
4may reimburse themselves for their seller's tax liability by
5separately stating the tax as an additional charge, which
6charge may be stated in combination, in a single amount, with
7State taxes that sellers are required to collect, in accordance
8with bracket schedules prescribed by the Department.
9 Whenever the Department determines that a refund should be
10made under this subsection to a claimant instead of issuing a
11credit memorandum, the Department shall notify the State
12Comptroller, who shall cause the warrant to be drawn for the
13amount specified, and to the person named, in the notification
14from the Department. The refund shall be paid by the State
15Treasurer out of the tax fund referenced under paragraph (g) of
16this Section.
17 If a tax is imposed under this subsection (b), a tax shall
18also be imposed at the same rate under subsections (c) and (d)
19of this Section.
20 For the purpose of determining whether a tax authorized
21under this Section is applicable, a retail sale, by a producer
22of coal or another mineral mined in Illinois, is a sale at
23retail at the place where the coal or other mineral mined in
24Illinois is extracted from the earth. This paragraph does not
25apply to coal or another mineral when it is delivered or
26shipped by the seller to the purchaser at a point outside

SB2221- 54 -LRB100 13309 AWJ 27836 b
1Illinois so that the sale is exempt under the federal
2Constitution as a sale in interstate or foreign commerce.
3 Notwithstanding any other provision of law, for the purpose
4of determining whether a tax authorized under this Section is
5applicable, a retail sale of fuel used by an aircraft shall be
6deemed to be a retail sale at the place where the fuel is
7delivered to the aircraft. For the purposes of this paragraph,
8"fuel" has the meaning given to that term in Section 1.19 of
9the Motor Fuel Tax Law.
10 Nothing in this Section shall be construed to authorize the
11county to impose a tax upon the privilege of engaging in any
12business that under the Constitution of the United States may
13not be made the subject of taxation by this State.
14 (c) If a tax has been imposed under subsection (b), a
15service occupation tax shall also be imposed at the same rate
16upon all persons engaged, in the county, in the business of
17making sales of service, who, as an incident to making those
18sales of service, transfer tangible personal property within
19the county as an incident to a sale of service. This additional
20tax may not be imposed on the sale of food for human
21consumption that is to be consumed off the premises where it is
22sold (other than alcoholic beverages, soft drinks, and food
23that has been prepared for immediate consumption) and
24prescription and non-prescription medicines, drugs, medical
25appliances and insulin, urine testing materials, syringes, and
26needles used by diabetics. The tax imposed under this

SB2221- 55 -LRB100 13309 AWJ 27836 b
1subsection and all civil penalties that may be assessed as an
2incident of the tax shall be collected and enforced by the
3Department of Revenue. The Department has full power to
4administer and enforce this paragraph; to collect all taxes and
5penalties due under this Section; to dispose of taxes and
6penalties so collected in the manner provided in this Section;
7and to determine all rights to credit memoranda arising on
8account of the erroneous payment of tax or penalty under this
9Section. In the administration of, and compliance with this
10paragraph, the Department and persons who are subject to this
11paragraph shall (i) have the same rights, remedies, privileges,
12immunities, powers, and duties, (ii) be subject to the same
13conditions, restrictions, limitations, penalties, exclusions,
14exemptions, and definitions of terms, and (iii) employ the same
15modes of procedure as are prescribed in Sections 2 (except that
16the reference to State in the definition of supplier
17maintaining a place of business in this State shall mean the
18county), 2a, 2b, 3 through 3-55 (in respect to all provisions
19other than the State rate of tax), 4 (except that the reference
20to the State shall be to the county), 5, 7, 8 (except that the
21jurisdiction to which the tax shall be a debt to the extent
22indicated in that Section 8 shall be the county), 9 (except as
23to the disposition of taxes and penalties collected, and except
24that the returned merchandise credit for this tax may not be
25taken against any State tax), 11, 12 (except the reference to
26Section 2b of the Retailers' Occupation Tax Act), 13 (except

SB2221- 56 -LRB100 13309 AWJ 27836 b
1that any reference to the State shall mean the county), 15, 16,
217, 18, 19 and 20 of the Service Occupation Tax Act and Section
33-7 of the Uniform Penalty and Interest Act, as fully as if
4those provisions were set forth in this subsection.
5 Persons subject to any tax imposed under the authority
6granted in this subsection may reimburse themselves for their
7serviceman's tax liability by separately stating the tax as an
8additional charge, which charge may be stated in combination,
9in a single amount, with State tax that servicemen are
10authorized to collect under the Service Use Tax Act, in
11accordance with bracket schedules prescribed by the
12Department.
13 Whenever the Department determines that a refund should be
14made under this subsection to a claimant instead of issuing a
15credit memorandum, the Department shall notify the State
16Comptroller, who shall cause the warrant to be drawn for the
17amount specified, and to the person named, in the notification
18from the Department. The refund shall be paid by the State
19Treasurer out of the tax fund referenced under paragraph (g) of
20this Section.
21 Nothing in this paragraph shall be construed to authorize
22the county to impose a tax upon the privilege of engaging in
23any business that under the Constitution of the United States
24may not be made the subject of taxation by the State.
25 (d) If a tax has been imposed under subsection (b), a use
26tax shall also be imposed at the same rate upon the privilege

SB2221- 57 -LRB100 13309 AWJ 27836 b
1of using, in the county, any item of tangible personal property
2that is purchased outside the county at retail from a retailer,
3and that is titled or registered at a location within the
4county with an agency of this State's government. This
5additional tax may not be imposed on the sale of food for human
6consumption that is to be consumed off the premises where it is
7sold (other than alcoholic beverages, soft drinks, and food
8that has been prepared for immediate consumption) and
9prescription and non-prescription medicines, drugs, medical
10appliances and insulin, urine testing materials, syringes, and
11needles used by diabetics. "Selling price" is defined as in the
12Use Tax Act. The tax shall be collected from persons whose
13Illinois address for titling or registration purposes is given
14as being in the county. The tax shall be collected by the
15Department of Revenue for the county. The tax must be paid to
16the State, or an exemption determination must be obtained from
17the Department of Revenue, before the title or certificate of
18registration for the property may be issued. The tax or proof
19of exemption may be transmitted to the Department by way of the
20State agency with which, or the State officer with whom, the
21tangible personal property must be titled or registered if the
22Department and the State agency or State officer determine that
23this procedure will expedite the processing of applications for
24title or registration.
25 The Department has full power to administer and enforce
26this paragraph; to collect all taxes, penalties, and interest

SB2221- 58 -LRB100 13309 AWJ 27836 b
1due under this Section; to dispose of taxes, penalties, and
2interest so collected in the manner provided in this Section;
3and to determine all rights to credit memoranda or refunds
4arising on account of the erroneous payment of tax, penalty, or
5interest under this Section. In the administration of, and
6compliance with, this subsection, the Department and persons
7who are subject to this paragraph shall (i) have the same
8rights, remedies, privileges, immunities, powers, and duties,
9(ii) be subject to the same conditions, restrictions,
10limitations, penalties, exclusions, exemptions, and
11definitions of terms, and (iii) employ the same modes of
12procedure as are prescribed in Sections 2 (except the
13definition of "retailer maintaining a place of business in this
14State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, 4, 6,
157, 8 (except that the jurisdiction to which the tax shall be a
16debt to the extent indicated in that Section 8 shall be the
17county), 9 (except provisions relating to quarter monthly
18payments), 10, 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22
19of the Use Tax Act and Section 3-7 of the Uniform Penalty and
20Interest Act, that are not inconsistent with this paragraph, as
21fully as if those provisions were set forth in this subsection.
22 Whenever the Department determines that a refund should be
23made under this subsection to a claimant instead of issuing a
24credit memorandum, the Department shall notify the State
25Comptroller, who shall cause the order to be drawn for the
26amount specified, and to the person named, in the notification

SB2221- 59 -LRB100 13309 AWJ 27836 b
1from the Department. The refund shall be paid by the State
2Treasurer out of the tax fund referenced under paragraph (g) of
3this Section.
4 (e) A certificate of registration issued by the State
5Department of Revenue to a retailer under the Retailers'
6Occupation Tax Act or under the Service Occupation Tax Act
7shall permit the registrant to engage in a business that is
8taxed under the tax imposed under paragraphs (b), (c), or (d)
9of this Section and no additional registration shall be
10required. A certificate issued under the Use Tax Act or the
11Service Use Tax Act shall be applicable with regard to any tax
12imposed under paragraph (c) of this Section.
13 (f) The results of any election authorizing a proposition
14to impose a tax under this Section or effecting a change in the
15rate of tax shall be certified by the proper election
16authorities and filed with the Illinois Department on or before
17the first day of October. In addition, an ordinance imposing,
18discontinuing, or effecting a change in the rate of tax under
19this Section shall be adopted and a certified copy of the
20ordinance filed with the Department on or before the first day
21of October. After proper receipt of the certifications, the
22Department shall proceed to administer and enforce this Section
23as of the first day of January next following the adoption and
24filing.
25 (g) The Department of Revenue shall, upon collecting any
26taxes and penalties as provided in this Section, pay the taxes

SB2221- 60 -LRB100 13309 AWJ 27836 b
1and penalties over to the State Treasurer as trustee for the
2county. The taxes and penalties shall be held in a trust fund
3outside the State Treasury. On or before the 25th day of each
4calendar month, the Department of Revenue shall prepare and
5certify to the Comptroller of the State of Illinois the amount
6to be paid to the county, which shall be the balance in the
7fund, less any amount determined by the Department to be
8necessary for the payment of refunds. Within 10 days after
9receipt by the Comptroller of the certification of the amount
10to be paid to the county, the Comptroller shall cause an order
11to be drawn for payment for the amount in accordance with the
12directions contained in the certification. Amounts received
13from the tax imposed under this Section shall be used only for
14the economic development activities of the county and
15communities located within the county.
16 (h) When certifying the amount of a monthly disbursement to
17the county under this Section, the Department shall increase or
18decrease the amounts by an amount necessary to offset any
19miscalculation of previous disbursements. The offset amount
20shall be the amount erroneously disbursed within the previous 6
21months from the time a miscalculation is discovered.
22 (i) This Section may be cited as the Rock Island County Use
23and Occupation Tax Law.
24(Source: P.A. 90-415, eff. 8-15-97.)
25 Section 20. The Illinois Municipal Code is amended by

SB2221- 61 -LRB100 13309 AWJ 27836 b
1changing Sections 8-11-1, 8-11-1.3, 8-11-1.6, and 11-74.3-6 as
2follows:
3 (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
4 Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
5Act. The corporate authorities of a home rule municipality may
6impose a tax upon all persons engaged in the business of
7selling tangible personal property, other than an item of
8tangible personal property titled or registered with an agency
9of this State's government, at retail in the municipality on
10the gross receipts from these sales made in the course of such
11business. If imposed, the tax shall only be imposed in 1/4%
12increments. On and after September 1, 1991, this additional tax
13may not be imposed on the sales of food for human consumption
14that is to be consumed off the premises where it is sold (other
15than alcoholic beverages, soft drinks and food that has been
16prepared for immediate consumption) and prescription and
17nonprescription medicines, drugs, medical appliances and
18insulin, urine testing materials, syringes and needles used by
19diabetics. The tax imposed by a home rule municipality under
20this Section and all civil penalties that may be assessed as an
21incident of the tax shall be collected and enforced by the
22State Department of Revenue. The certificate of registration
23that is issued by the Department to a retailer under the
24Retailers' Occupation Tax Act shall permit the retailer to
25engage in a business that is taxable under any ordinance or

SB2221- 62 -LRB100 13309 AWJ 27836 b
1resolution enacted pursuant to this Section without
2registering separately with the Department under such
3ordinance or resolution or under this Section. The Department
4shall have full power to administer and enforce this Section;
5to collect all taxes and penalties due hereunder; to dispose of
6taxes and penalties so collected in the manner hereinafter
7provided; and to determine all rights to credit memoranda
8arising on account of the erroneous payment of tax or penalty
9hereunder. In the administration of, and compliance with, this
10Section the Department and persons who are subject to this
11Section shall have the same rights, remedies, privileges,
12immunities, powers and duties, and be subject to the same
13conditions, restrictions, limitations, penalties and
14definitions of terms, and employ the same modes of procedure,
15as are prescribed in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k,
161m, 1n, 2 through 2-65 (in respect to all provisions therein
17other than the State rate of tax), 2c, 3 (except as to the
18disposition of taxes and penalties collected), 4, 5, 5a, 5b,
195c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8,
209, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
21Section 3-7 of the Uniform Penalty and Interest Act, as fully
22as if those provisions were set forth herein.
23 No tax may be imposed by a home rule municipality under
24this Section unless the municipality also imposes a tax at the
25same rate under Section 8-11-5 of this Act.
26 Persons subject to any tax imposed under the authority

SB2221- 63 -LRB100 13309 AWJ 27836 b
1granted in this Section may reimburse themselves for their
2seller's tax liability hereunder by separately stating that tax
3as an additional charge, which charge may be stated in
4combination, in a single amount, with State tax which sellers
5are required to collect under the Use Tax Act, pursuant to such
6bracket schedules as the Department may prescribe.
7 Whenever the Department determines that a refund should be
8made under this Section to a claimant instead of issuing a
9credit memorandum, the Department shall notify the State
10Comptroller, who shall cause the order to be drawn for the
11amount specified and to the person named in the notification
12from the Department. The refund shall be paid by the State
13Treasurer out of the home rule municipal retailers' occupation
14tax fund.
15 The Department shall immediately pay over to the State
16Treasurer, ex officio, as trustee, all taxes and penalties
17collected hereunder.
18 As soon as possible after the first day of each month,
19beginning January 1, 2011, upon certification of the Department
20of Revenue, the Comptroller shall order transferred, and the
21Treasurer shall transfer, to the STAR Bonds Revenue Fund the
22local sales tax increment, as defined in the Innovation
23Development and Economy Act, collected under this Section
24during the second preceding calendar month for sales within a
25STAR bond district.
26 After the monthly transfer to the STAR Bonds Revenue Fund,

SB2221- 64 -LRB100 13309 AWJ 27836 b
1on or before the 25th day of each calendar month, the
2Department shall prepare and certify to the Comptroller the
3disbursement of stated sums of money to named municipalities,
4the municipalities to be those from which retailers have paid
5taxes or penalties hereunder to the Department during the
6second preceding calendar month. The amount to be paid to each
7municipality shall be the amount (not including credit
8memoranda) collected hereunder during the second preceding
9calendar month by the Department plus an amount the Department
10determines is necessary to offset any amounts that were
11erroneously paid to a different taxing body, and not including
12an amount equal to the amount of refunds made during the second
13preceding calendar month by the Department on behalf of such
14municipality, and not including any amount that the Department
15determines is necessary to offset any amounts that were payable
16to a different taxing body but were erroneously paid to the
17municipality, and not including any amounts that are
18transferred to the STAR Bonds Revenue Fund. Within 10 days
19after receipt by the Comptroller of the disbursement
20certification to the municipalities provided for in this
21Section to be given to the Comptroller by the Department, the
22Comptroller shall cause the orders to be drawn for the
23respective amounts in accordance with the directions contained
24in the certification.
25 In addition to the disbursement required by the preceding
26paragraph and in order to mitigate delays caused by

SB2221- 65 -LRB100 13309 AWJ 27836 b
1distribution procedures, an allocation shall, if requested, be
2made within 10 days after January 14, 1991, and in November of
31991 and each year thereafter, to each municipality that
4received more than $500,000 during the preceding fiscal year,
5(July 1 through June 30) whether collected by the municipality
6or disbursed by the Department as required by this Section.
7Within 10 days after January 14, 1991, participating
8municipalities shall notify the Department in writing of their
9intent to participate. In addition, for the initial
10distribution, participating municipalities shall certify to
11the Department the amounts collected by the municipality for
12each month under its home rule occupation and service
13occupation tax during the period July 1, 1989 through June 30,
141990. The allocation within 10 days after January 14, 1991,
15shall be in an amount equal to the monthly average of these
16amounts, excluding the 2 months of highest receipts. The
17monthly average for the period of July 1, 1990 through June 30,
181991 will be determined as follows: the amounts collected by
19the municipality under its home rule occupation and service
20occupation tax during the period of July 1, 1990 through
21September 30, 1990, plus amounts collected by the Department
22and paid to such municipality through June 30, 1991, excluding
23the 2 months of highest receipts. The monthly average for each
24subsequent period of July 1 through June 30 shall be an amount
25equal to the monthly distribution made to each such
26municipality under the preceding paragraph during this period,

SB2221- 66 -LRB100 13309 AWJ 27836 b
1excluding the 2 months of highest receipts. The distribution
2made in November 1991 and each year thereafter under this
3paragraph and the preceding paragraph shall be reduced by the
4amount allocated and disbursed under this paragraph in the
5preceding period of July 1 through June 30. The Department
6shall prepare and certify to the Comptroller for disbursement
7the allocations made in accordance with this paragraph.
8 For the purpose of determining the local governmental unit
9whose tax is applicable, a retail sale by a producer of coal or
10other mineral mined in Illinois is a sale at retail at the
11place where the coal or other mineral mined in Illinois is
12extracted from the earth. This paragraph does not apply to coal
13or other mineral when it is delivered or shipped by the seller
14to the purchaser at a point outside Illinois so that the sale
15is exempt under the United States Constitution as a sale in
16interstate or foreign commerce.
17 Notwithstanding any other provision of law, for the purpose
18of determining the local governmental unit whose tax is
19applicable, a retail sale of fuel used by an aircraft shall be
20deemed to be a retail sale at the place where the fuel is
21delivered to the aircraft. For the purposes of this paragraph,
22"fuel" has the meaning given to that term in Section 1.19 of
23the Motor Fuel Tax Law.
24 Nothing in this Section shall be construed to authorize a
25municipality to impose a tax upon the privilege of engaging in
26any business which under the Constitution of the United States

SB2221- 67 -LRB100 13309 AWJ 27836 b
1may not be made the subject of taxation by this State.
2 An ordinance or resolution imposing or discontinuing a tax
3hereunder or effecting a change in the rate thereof shall be
4adopted and a certified copy thereof filed with the Department
5on or before the first day of June, whereupon the Department
6shall proceed to administer and enforce this Section as of the
7first day of September next following the adoption and filing.
8Beginning January 1, 1992, an ordinance or resolution imposing
9or discontinuing the tax hereunder or effecting a change in the
10rate thereof shall be adopted and a certified copy thereof
11filed with the Department on or before the first day of July,
12whereupon the Department shall proceed to administer and
13enforce this Section as of the first day of October next
14following such adoption and filing. Beginning January 1, 1993,
15an ordinance or resolution imposing or discontinuing the tax
16hereunder or effecting a change in the rate thereof shall be
17adopted and a certified copy thereof filed with the Department
18on or before the first day of October, whereupon the Department
19shall proceed to administer and enforce this Section as of the
20first day of January next following the adoption and filing.
21However, a municipality located in a county with a population
22in excess of 3,000,000 that elected to become a home rule unit
23at the general primary election in 1994 may adopt an ordinance
24or resolution imposing the tax under this Section and file a
25certified copy of the ordinance or resolution with the
26Department on or before July 1, 1994. The Department shall then

SB2221- 68 -LRB100 13309 AWJ 27836 b
1proceed to administer and enforce this Section as of October 1,
21994. Beginning April 1, 1998, an ordinance or resolution
3imposing or discontinuing the tax hereunder or effecting a
4change in the rate thereof shall either (i) be adopted and a
5certified copy thereof filed with the Department on or before
6the first day of April, whereupon the Department shall proceed
7to administer and enforce this Section as of the first day of
8July next following the adoption and filing; or (ii) be adopted
9and a certified copy thereof filed with the Department on or
10before the first day of October, whereupon the Department shall
11proceed to administer and enforce this Section as of the first
12day of January next following the adoption and filing.
13 When certifying the amount of a monthly disbursement to a
14municipality under this Section, the Department shall increase
15or decrease the amount by an amount necessary to offset any
16misallocation of previous disbursements. The offset amount
17shall be the amount erroneously disbursed within the previous 6
18months from the time a misallocation is discovered.
19 Any unobligated balance remaining in the Municipal
20Retailers' Occupation Tax Fund on December 31, 1989, which fund
21was abolished by Public Act 85-1135, and all receipts of
22municipal tax as a result of audits of liability periods prior
23to January 1, 1990, shall be paid into the Local Government Tax
24Fund for distribution as provided by this Section prior to the
25enactment of Public Act 85-1135. All receipts of municipal tax
26as a result of an assessment not arising from an audit, for

SB2221- 69 -LRB100 13309 AWJ 27836 b
1liability periods prior to January 1, 1990, shall be paid into
2the Local Government Tax Fund for distribution before July 1,
31990, as provided by this Section prior to the enactment of
4Public Act 85-1135; and on and after July 1, 1990, all such
5receipts shall be distributed as provided in Section 6z-18 of
6the State Finance Act.
7 As used in this Section, "municipal" and "municipality"
8means a city, village or incorporated town, including an
9incorporated town that has superseded a civil township.
10 This Section shall be known and may be cited as the Home
11Rule Municipal Retailers' Occupation Tax Act.
12(Source: P.A. 99-217, eff. 7-31-15.)
13 (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
14 Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
15Occupation Tax Act. The corporate authorities of a non-home
16rule municipality may impose a tax upon all persons engaged in
17the business of selling tangible personal property, other than
18on an item of tangible personal property which is titled and
19registered by an agency of this State's Government, at retail
20in the municipality for expenditure on public infrastructure or
21for property tax relief or both as defined in Section 8-11-1.2
22if approved by referendum as provided in Section 8-11-1.1, of
23the gross receipts from such sales made in the course of such
24business. If the tax is approved by referendum on or after July
2514, 2010 (the effective date of Public Act 96-1057), the

SB2221- 70 -LRB100 13309 AWJ 27836 b
1corporate authorities of a non-home rule municipality may,
2until December 31, 2020, use the proceeds of the tax for
3expenditure on municipal operations, in addition to or in lieu
4of any expenditure on public infrastructure or for property tax
5relief. The tax imposed may not be more than 1% and may be
6imposed only in 1/4% increments. The tax may not be imposed on
7the sale of food for human consumption that is to be consumed
8off the premises where it is sold (other than alcoholic
9beverages, soft drinks, and food that has been prepared for
10immediate consumption) and prescription and nonprescription
11medicines, drugs, medical appliances, and insulin, urine
12testing materials, syringes, and needles used by diabetics. The
13tax imposed by a municipality pursuant to this Section and all
14civil penalties that may be assessed as an incident thereof
15shall be collected and enforced by the State Department of
16Revenue. The certificate of registration which is issued by the
17Department to a retailer under the Retailers' Occupation Tax
18Act shall permit such retailer to engage in a business which is
19taxable under any ordinance or resolution enacted pursuant to
20this Section without registering separately with the
21Department under such ordinance or resolution or under this
22Section. The Department shall have full power to administer and
23enforce this Section; to collect all taxes and penalties due
24hereunder; to dispose of taxes and penalties so collected in
25the manner hereinafter provided, and to determine all rights to
26credit memoranda, arising on account of the erroneous payment

SB2221- 71 -LRB100 13309 AWJ 27836 b
1of tax or penalty hereunder. In the administration of, and
2compliance with, this Section, the Department and persons who
3are subject to this Section shall have the same rights,
4remedies, privileges, immunities, powers and duties, and be
5subject to the same conditions, restrictions, limitations,
6penalties and definitions of terms, and employ the same modes
7of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
81e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
9therein other than the State rate of tax), 2c, 3 (except as to
10the disposition of taxes and penalties collected), 4, 5, 5a,
115b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
127, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act
13and Section 3-7 of the Uniform Penalty and Interest Act as
14fully as if those provisions were set forth herein.
15 No municipality may impose a tax under this Section unless
16the municipality also imposes a tax at the same rate under
17Section 8-11-1.4 of this Code.
18 Persons subject to any tax imposed pursuant to the
19authority granted in this Section may reimburse themselves for
20their seller's tax liability hereunder by separately stating
21such tax as an additional charge, which charge may be stated in
22combination, in a single amount, with State tax which sellers
23are required to collect under the Use Tax Act, pursuant to such
24bracket schedules as the Department may prescribe.
25 Whenever the Department determines that a refund should be
26made under this Section to a claimant instead of issuing a

SB2221- 72 -LRB100 13309 AWJ 27836 b
1credit memorandum, the Department shall notify the State
2Comptroller, who shall cause the order to be drawn for the
3amount specified, and to the person named, in such notification
4from the Department. Such refund shall be paid by the State
5Treasurer out of the non-home rule municipal retailers'
6occupation tax fund.
7 The Department shall forthwith pay over to the State
8Treasurer, ex officio, as trustee, all taxes and penalties
9collected hereunder.
10 As soon as possible after the first day of each month,
11beginning January 1, 2011, upon certification of the Department
12of Revenue, the Comptroller shall order transferred, and the
13Treasurer shall transfer, to the STAR Bonds Revenue Fund the
14local sales tax increment, as defined in the Innovation
15Development and Economy Act, collected under this Section
16during the second preceding calendar month for sales within a
17STAR bond district.
18 After the monthly transfer to the STAR Bonds Revenue Fund,
19on or before the 25th day of each calendar month, the
20Department shall prepare and certify to the Comptroller the
21disbursement of stated sums of money to named municipalities,
22the municipalities to be those from which retailers have paid
23taxes or penalties hereunder to the Department during the
24second preceding calendar month. The amount to be paid to each
25municipality shall be the amount (not including credit
26memoranda) collected hereunder during the second preceding

SB2221- 73 -LRB100 13309 AWJ 27836 b
1calendar month by the Department plus an amount the Department
2determines is necessary to offset any amounts which were
3erroneously paid to a different taxing body, and not including
4an amount equal to the amount of refunds made during the second
5preceding calendar month by the Department on behalf of such
6municipality, and not including any amount which the Department
7determines is necessary to offset any amounts which were
8payable to a different taxing body but were erroneously paid to
9the municipality, and not including any amounts that are
10transferred to the STAR Bonds Revenue Fund. Within 10 days
11after receipt, by the Comptroller, of the disbursement
12certification to the municipalities, provided for in this
13Section to be given to the Comptroller by the Department, the
14Comptroller shall cause the orders to be drawn for the
15respective amounts in accordance with the directions contained
16in such certification.
17 For the purpose of determining the local governmental unit
18whose tax is applicable, a retail sale, by a producer of coal
19or other mineral mined in Illinois, is a sale at retail at the
20place where the coal or other mineral mined in Illinois is
21extracted from the earth. This paragraph does not apply to coal
22or other mineral when it is delivered or shipped by the seller
23to the purchaser at a point outside Illinois so that the sale
24is exempt under the Federal Constitution as a sale in
25interstate or foreign commerce.
26 Notwithstanding any other provision of law, for the purpose

SB2221- 74 -LRB100 13309 AWJ 27836 b
1of determining the local governmental unit whose tax is
2applicable, a retail sale of fuel used by an aircraft shall be
3deemed to be a retail sale at the place where the fuel is
4delivered to the aircraft. For the purposes of this paragraph,
5"fuel" has the meaning given to that term in Section 1.19 of
6the Motor Fuel Tax Law.
7 Nothing in this Section shall be construed to authorize a
8municipality to impose a tax upon the privilege of engaging in
9any business which under the constitution of the United States
10may not be made the subject of taxation by this State.
11 When certifying the amount of a monthly disbursement to a
12municipality under this Section, the Department shall increase
13or decrease such amount by an amount necessary to offset any
14misallocation of previous disbursements. The offset amount
15shall be the amount erroneously disbursed within the previous 6
16months from the time a misallocation is discovered.
17 The Department of Revenue shall implement this amendatory
18Act of the 91st General Assembly so as to collect the tax on
19and after January 1, 2002.
20 As used in this Section, "municipal" and "municipality"
21means a city, village or incorporated town, including an
22incorporated town which has superseded a civil township.
23 This Section shall be known and may be cited as the
24"Non-Home Rule Municipal Retailers' Occupation Tax Act".
25(Source: P.A. 99-217, eff. 7-31-15.)

SB2221- 75 -LRB100 13309 AWJ 27836 b
1 (65 ILCS 5/8-11-1.6)
2 Sec. 8-11-1.6. Non-home rule municipal retailers
3occupation tax; municipalities between 20,000 and 25,000. The
4corporate authorities of a non-home rule municipality with a
5population of more than 20,000 but less than 25,000 that has,
6prior to January 1, 1987, established a Redevelopment Project
7Area that has been certified as a State Sales Tax Boundary and
8has issued bonds or otherwise incurred indebtedness to pay for
9costs in excess of $5,000,000, which is secured in part by a
10tax increment allocation fund, in accordance with the
11provisions of Division 11-74.4 of this Code may, by passage of
12an ordinance, impose a tax upon all persons engaged in the
13business of selling tangible personal property, other than on
14an item of tangible personal property that is titled and
15registered by an agency of this State's Government, at retail
16in the municipality. This tax may not be imposed on the sales
17of food for human consumption that is to be consumed off the
18premises where it is sold (other than alcoholic beverages, soft
19drinks, and food that has been prepared for immediate
20consumption) and prescription and nonprescription medicines,
21drugs, medical appliances and insulin, urine testing
22materials, syringes, and needles used by diabetics. If imposed,
23the tax shall only be imposed in .25% increments of the gross
24receipts from such sales made in the course of business. Any
25tax imposed by a municipality under this Section and all civil
26penalties that may be assessed as an incident thereof shall be

SB2221- 76 -LRB100 13309 AWJ 27836 b
1collected and enforced by the State Department of Revenue. An
2ordinance imposing a tax hereunder or effecting a change in the
3rate thereof shall be adopted and a certified copy thereof
4filed with the Department on or before the first day of
5October, whereupon the Department shall proceed to administer
6and enforce this Section as of the first day of January next
7following such adoption and filing. The certificate of
8registration that is issued by the Department to a retailer
9under the Retailers' Occupation Tax Act shall permit the
10retailer to engage in a business that is taxable under any
11ordinance or resolution enacted under this Section without
12registering separately with the Department under the ordinance
13or resolution or under this Section. The Department shall have
14full power to administer and enforce this Section, to collect
15all taxes and penalties due hereunder, to dispose of taxes and
16penalties so collected in the manner hereinafter provided, and
17to determine all rights to credit memoranda, arising on account
18of the erroneous payment of tax or penalty hereunder. In the
19administration of, and compliance with this Section, the
20Department and persons who are subject to this Section shall
21have the same rights, remedies, privileges, immunities,
22powers, and duties, and be subject to the same conditions,
23restrictions, limitations, penalties, and definitions of
24terms, and employ the same modes of procedure, as are
25prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
26through 2-65 (in respect to all provisions therein other than

SB2221- 77 -LRB100 13309 AWJ 27836 b
1the State rate of tax), 2c, 3 (except as to the disposition of
2taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
35g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
4and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
5the Uniform Penalty and Interest Act as fully as if those
6provisions were set forth herein.
7 A tax may not be imposed by a municipality under this
8Section unless the municipality also imposes a tax at the same
9rate under Section 8-11-1.7 of this Act.
10 Persons subject to any tax imposed under the authority
11granted in this Section, may reimburse themselves for their
12seller's tax liability hereunder by separately stating the tax
13as an additional charge, which charge may be stated in
14combination, in a single amount, with State tax which sellers
15are required to collect under the Use Tax Act, pursuant to such
16bracket schedules as the Department may prescribe.
17 Whenever the Department determines that a refund should be
18made under this Section to a claimant, instead of issuing a
19credit memorandum, the Department shall notify the State
20Comptroller, who shall cause the order to be drawn for the
21amount specified, and to the person named in the notification
22from the Department. The refund shall be paid by the State
23Treasurer out of the Non-Home Rule Municipal Retailers'
24Occupation Tax Fund, which is hereby created.
25 The Department shall forthwith pay over to the State
26Treasurer, ex officio, as trustee, all taxes and penalties

SB2221- 78 -LRB100 13309 AWJ 27836 b
1collected hereunder.
2 As soon as possible after the first day of each month,
3beginning January 1, 2011, upon certification of the Department
4of Revenue, the Comptroller shall order transferred, and the
5Treasurer shall transfer, to the STAR Bonds Revenue Fund the
6local sales tax increment, as defined in the Innovation
7Development and Economy Act, collected under this Section
8during the second preceding calendar month for sales within a
9STAR bond district.
10 After the monthly transfer to the STAR Bonds Revenue Fund,
11on or before the 25th day of each calendar month, the
12Department shall prepare and certify to the Comptroller the
13disbursement of stated sums of money to named municipalities,
14the municipalities to be those from which retailers have paid
15taxes or penalties hereunder to the Department during the
16second preceding calendar month. The amount to be paid to each
17municipality shall be the amount (not including credit
18memoranda) collected hereunder during the second preceding
19calendar month by the Department plus an amount the Department
20determines is necessary to offset any amounts that were
21erroneously paid to a different taxing body, and not including
22an amount equal to the amount of refunds made during the second
23preceding calendar month by the Department on behalf of the
24municipality, and not including any amount that the Department
25determines is necessary to offset any amounts that were payable
26to a different taxing body but were erroneously paid to the

SB2221- 79 -LRB100 13309 AWJ 27836 b
1municipality, and not including any amounts that are
2transferred to the STAR Bonds Revenue Fund. Within 10 days
3after receipt by the Comptroller of the disbursement
4certification to the municipalities provided for in this
5Section to be given to the Comptroller by the Department, the
6Comptroller shall cause the orders to be drawn for the
7respective amounts in accordance with the directions contained
8in the certification.
9 For the purpose of determining the local governmental unit
10whose tax is applicable, a retail sale by a producer of coal or
11other mineral mined in Illinois is a sale at retail at the
12place where the coal or other mineral mined in Illinois is
13extracted from the earth. This paragraph does not apply to coal
14or other mineral when it is delivered or shipped by the seller
15to the purchaser at a point outside Illinois so that the sale
16is exempt under the federal Constitution as a sale in
17interstate or foreign commerce.
18 Notwithstanding any other provision of law, for the purpose
19of determining the local governmental unit whose tax is
20applicable, a retail sale of fuel used by an aircraft shall be
21deemed to be a retail sale at the place where the fuel is
22delivered to the aircraft. For the purposes of this paragraph,
23"fuel" has the meaning given to that term in Section 1.19 of
24the Motor Fuel Tax Law.
25 Nothing in this Section shall be construed to authorize a
26municipality to impose a tax upon the privilege of engaging in

SB2221- 80 -LRB100 13309 AWJ 27836 b
1any business which under the constitution of the United States
2may not be made the subject of taxation by this State.
3 When certifying the amount of a monthly disbursement to a
4municipality under this Section, the Department shall increase
5or decrease the amount by an amount necessary to offset any
6misallocation of previous disbursements. The offset amount
7shall be the amount erroneously disbursed within the previous 6
8months from the time a misallocation is discovered.
9 As used in this Section, "municipal" and "municipality"
10means a city, village, or incorporated town, including an
11incorporated town that has superseded a civil township.
12(Source: P.A. 99-217, eff. 7-31-15; 99-642, eff. 7-28-16.)
13 (65 ILCS 5/11-74.3-6)
14 Sec. 11-74.3-6. Business district revenue and obligations;
15business district tax allocation fund.
16 (a) If the corporate authorities of a municipality have
17approved a business district plan, have designated a business
18district, and have elected to impose a tax by ordinance
19pursuant to subsection (10) or (11) of Section 11-74.3-3, then
20each year after the date of the approval of the ordinance but
21terminating upon the date all business district project costs
22and all obligations paying or reimbursing business district
23project costs, if any, have been paid, but in no event later
24than the dissolution date, all amounts generated by the
25retailers' occupation tax and service occupation tax shall be

SB2221- 81 -LRB100 13309 AWJ 27836 b
1collected and the tax shall be enforced by the Department of
2Revenue in the same manner as all retailers' occupation taxes
3and service occupation taxes imposed in the municipality
4imposing the tax and all amounts generated by the hotel
5operators' occupation tax shall be collected and the tax shall
6be enforced by the municipality in the same manner as all hotel
7operators' occupation taxes imposed in the municipality
8imposing the tax. The corporate authorities of the municipality
9shall deposit the proceeds of the taxes imposed under
10subsections (10) and (11) of Section 11-74.3-3 into a special
11fund of the municipality called the "[Name of] Business
12District Tax Allocation Fund" for the purpose of paying or
13reimbursing business district project costs and obligations
14incurred in the payment of those costs.
15 (b) The corporate authorities of a municipality that has
16designated a business district under this Law may, by
17ordinance, impose a Business District Retailers' Occupation
18Tax upon all persons engaged in the business of selling
19tangible personal property, other than an item of tangible
20personal property titled or registered with an agency of this
21State's government, at retail in the business district at a
22rate not to exceed 1% of the gross receipts from the sales made
23in the course of such business, to be imposed only in 0.25%
24increments. The tax may not be imposed on food for human
25consumption that is to be consumed off the premises where it is
26sold (other than alcoholic beverages, soft drinks, and food

SB2221- 82 -LRB100 13309 AWJ 27836 b
1that has been prepared for immediate consumption),
2prescription and nonprescription medicines, drugs, medical
3appliances, modifications to a motor vehicle for the purpose of
4rendering it usable by a person with a disability, and insulin,
5urine testing materials, syringes, and needles used by
6diabetics, for human use.
7 The tax imposed under this subsection and all civil
8penalties that may be assessed as an incident thereof shall be
9collected and enforced by the Department of Revenue. The
10certificate of registration that is issued by the Department to
11a retailer under the Retailers' Occupation Tax Act shall permit
12the retailer to engage in a business that is taxable under any
13ordinance or resolution enacted pursuant to this subsection
14without registering separately with the Department under such
15ordinance or resolution or under this subsection. The
16Department of Revenue shall have full power to administer and
17enforce this subsection; to collect all taxes and penalties due
18under this subsection in the manner hereinafter provided; and
19to determine all rights to credit memoranda arising on account
20of the erroneous payment of tax or penalty under this
21subsection. In the administration of, and compliance with, this
22subsection, the Department and persons who are subject to this
23subsection shall have the same rights, remedies, privileges,
24immunities, powers and duties, and be subject to the same
25conditions, restrictions, limitations, penalties, exclusions,
26exemptions, and definitions of terms and employ the same modes

SB2221- 83 -LRB100 13309 AWJ 27836 b
1of procedure, as are prescribed in Sections 1, 1a through 1o, 2
2through 2-65 (in respect to all provisions therein other than
3the State rate of tax), 2c through 2h, 3 (except as to the
4disposition of taxes and penalties collected), 4, 5, 5a, 5c,
55d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
612, 13, and 14 of the Retailers' Occupation Tax Act and all
7provisions of the Uniform Penalty and Interest Act, as fully as
8if those provisions were set forth herein.
9 Persons subject to any tax imposed under this subsection
10may reimburse themselves for their seller's tax liability under
11this subsection by separately stating the tax as an additional
12charge, which charge may be stated in combination, in a single
13amount, with State taxes that sellers are required to collect
14under the Use Tax Act, in accordance with such bracket
15schedules as the Department may prescribe.
16 Whenever the Department determines that a refund should be
17made under this subsection to a claimant instead of issuing a
18credit memorandum, the Department shall notify the State
19Comptroller, who shall cause the order to be drawn for the
20amount specified and to the person named in the notification
21from the Department. The refund shall be paid by the State
22Treasurer out of the business district retailers' occupation
23tax fund.
24 The Department shall immediately pay over to the State
25Treasurer, ex officio, as trustee, all taxes, penalties, and
26interest collected under this subsection for deposit into the

SB2221- 84 -LRB100 13309 AWJ 27836 b
1business district retailers' occupation tax fund.
2 As soon as possible after the first day of each month,
3beginning January 1, 2011, upon certification of the Department
4of Revenue, the Comptroller shall order transferred, and the
5Treasurer shall transfer, to the STAR Bonds Revenue Fund the
6local sales tax increment, as defined in the Innovation
7Development and Economy Act, collected under this subsection
8during the second preceding calendar month for sales within a
9STAR bond district.
10 After the monthly transfer to the STAR Bonds Revenue Fund,
11on or before the 25th day of each calendar month, the
12Department shall prepare and certify to the Comptroller the
13disbursement of stated sums of money to named municipalities
14from the business district retailers' occupation tax fund, the
15municipalities to be those from which retailers have paid taxes
16or penalties under this subsection to the Department during the
17second preceding calendar month. The amount to be paid to each
18municipality shall be the amount (not including credit
19memoranda) collected under this subsection during the second
20preceding calendar month by the Department plus an amount the
21Department determines is necessary to offset any amounts that
22were erroneously paid to a different taxing body, and not
23including an amount equal to the amount of refunds made during
24the second preceding calendar month by the Department, less 2%
25of that amount, which shall be deposited into the Tax
26Compliance and Administration Fund and shall be used by the

SB2221- 85 -LRB100 13309 AWJ 27836 b
1Department, subject to appropriation, to cover the costs of the
2Department in administering and enforcing the provisions of
3this subsection, on behalf of such municipality, and not
4including any amount that the Department determines is
5necessary to offset any amounts that were payable to a
6different taxing body but were erroneously paid to the
7municipality, and not including any amounts that are
8transferred to the STAR Bonds Revenue Fund. Within 10 days
9after receipt by the Comptroller of the disbursement
10certification to the municipalities provided for in this
11subsection to be given to the Comptroller by the Department,
12the Comptroller shall cause the orders to be drawn for the
13respective amounts in accordance with the directions contained
14in the certification. The proceeds of the tax paid to
15municipalities under this subsection shall be deposited into
16the Business District Tax Allocation Fund by the municipality.
17 An ordinance imposing or discontinuing the tax under this
18subsection or effecting a change in the rate thereof shall
19either (i) be adopted and a certified copy thereof filed with
20the Department on or before the first day of April, whereupon
21the Department, if all other requirements of this subsection
22are met, shall proceed to administer and enforce this
23subsection as of the first day of July next following the
24adoption and filing; or (ii) be adopted and a certified copy
25thereof filed with the Department on or before the first day of
26October, whereupon, if all other requirements of this

SB2221- 86 -LRB100 13309 AWJ 27836 b
1subsection are met, the Department shall proceed to administer
2and enforce this subsection as of the first day of January next
3following the adoption and filing.
4 The Department of Revenue shall not administer or enforce
5an ordinance imposing, discontinuing, or changing the rate of
6the tax under this subsection, until the municipality also
7provides, in the manner prescribed by the Department, the
8boundaries of the business district and each address in the
9business district in such a way that the Department can
10determine by its address whether a business is located in the
11business district. The municipality must provide this boundary
12and address information to the Department on or before April 1
13for administration and enforcement of the tax under this
14subsection by the Department beginning on the following July 1
15and on or before October 1 for administration and enforcement
16of the tax under this subsection by the Department beginning on
17the following January 1. The Department of Revenue shall not
18administer or enforce any change made to the boundaries of a
19business district or address change, addition, or deletion
20until the municipality reports the boundary change or address
21change, addition, or deletion to the Department in the manner
22prescribed by the Department. The municipality must provide
23this boundary change information or address change, addition,
24or deletion to the Department on or before April 1 for
25administration and enforcement by the Department of the change
26beginning on the following July 1 and on or before October 1

SB2221- 87 -LRB100 13309 AWJ 27836 b
1for administration and enforcement by the Department of the
2change beginning on the following January 1. The retailers in
3the business district shall be responsible for charging the tax
4imposed under this subsection. If a retailer is incorrectly
5included or excluded from the list of those required to collect
6the tax under this subsection, both the Department of Revenue
7and the retailer shall be held harmless if they reasonably
8relied on information provided by the municipality.
9 A municipality that imposes the tax under this subsection
10must submit to the Department of Revenue any other information
11as the Department may require for the administration and
12enforcement of the tax.
13 When certifying the amount of a monthly disbursement to a
14municipality under this subsection, the Department shall
15increase or decrease the amount by an amount necessary to
16offset any misallocation of previous disbursements. The offset
17amount shall be the amount erroneously disbursed within the
18previous 6 months from the time a misallocation is discovered.
19 Nothing in this subsection shall be construed to authorize
20the municipality to impose a tax upon the privilege of engaging
21in any business which under the Constitution of the United
22States may not be made the subject of taxation by this State.
23 If a tax is imposed under this subsection (b), a tax shall
24also be imposed under subsection (c) of this Section.
25 (c) If a tax has been imposed under subsection (b), a
26Business District Service Occupation Tax shall also be imposed

SB2221- 88 -LRB100 13309 AWJ 27836 b
1upon all persons engaged, in the business district, in the
2business of making sales of service, who, as an incident to
3making those sales of service, transfer tangible personal
4property within the business district, either in the form of
5tangible personal property or in the form of real estate as an
6incident to a sale of service. The tax shall be imposed at the
7same rate as the tax imposed in subsection (b) and shall not
8exceed 1% of the selling price of tangible personal property so
9transferred within the business district, to be imposed only in
100.25% increments. The tax may not be imposed on food for human
11consumption that is to be consumed off the premises where it is
12sold (other than alcoholic beverages, soft drinks, and food
13that has been prepared for immediate consumption),
14prescription and nonprescription medicines, drugs, medical
15appliances, modifications to a motor vehicle for the purpose of
16rendering it usable by a person with a disability, and insulin,
17urine testing materials, syringes, and needles used by
18diabetics, for human use.
19 The tax imposed under this subsection and all civil
20penalties that may be assessed as an incident thereof shall be
21collected and enforced by the Department of Revenue. The
22certificate of registration which is issued by the Department
23to a retailer under the Retailers' Occupation Tax Act or under
24the Service Occupation Tax Act shall permit such registrant to
25engage in a business which is taxable under any ordinance or
26resolution enacted pursuant to this subsection without

SB2221- 89 -LRB100 13309 AWJ 27836 b
1registering separately with the Department under such
2ordinance or resolution or under this subsection. The
3Department of Revenue shall have full power to administer and
4enforce this subsection; to collect all taxes and penalties due
5under this subsection; to dispose of taxes and penalties so
6collected in the manner hereinafter provided; and to determine
7all rights to credit memoranda arising on account of the
8erroneous payment of tax or penalty under this subsection. In
9the administration of, and compliance with this subsection, the
10Department and persons who are subject to this subsection shall
11have the same rights, remedies, privileges, immunities, powers
12and duties, and be subject to the same conditions,
13restrictions, limitations, penalties, exclusions, exemptions,
14and definitions of terms and employ the same modes of procedure
15as are prescribed in Sections 2, 2a through 2d, 3 through 3-50
16(in respect to all provisions therein other than the State rate
17of tax), 4 (except that the reference to the State shall be to
18the business district), 5, 7, 8 (except that the jurisdiction
19to which the tax shall be a debt to the extent indicated in
20that Section 8 shall be the municipality), 9 (except as to the
21disposition of taxes and penalties collected, and except that
22the returned merchandise credit for this tax may not be taken
23against any State tax), 10, 11, 12 (except the reference
24therein to Section 2b of the Retailers' Occupation Tax Act), 13
25(except that any reference to the State shall mean the
26municipality), the first paragraph of Section 15, and Sections

SB2221- 90 -LRB100 13309 AWJ 27836 b
116, 17, 18, 19 and 20 of the Service Occupation Tax Act and all
2provisions of the Uniform Penalty and Interest Act, as fully as
3if those provisions were set forth herein.
4 Persons subject to any tax imposed under the authority
5granted in this subsection may reimburse themselves for their
6serviceman's tax liability hereunder by separately stating the
7tax as an additional charge, which charge may be stated in
8combination, in a single amount, with State tax that servicemen
9are authorized to collect under the Service Use Tax Act, in
10accordance with such bracket schedules as the Department may
11prescribe.
12 Whenever the Department determines that a refund should be
13made under this subsection to a claimant instead of issuing
14credit memorandum, the Department shall notify the State
15Comptroller, who shall cause the order to be drawn for the
16amount specified, and to the person named, in such notification
17from the Department. Such refund shall be paid by the State
18Treasurer out of the business district retailers' occupation
19tax fund.
20 The Department shall forthwith pay over to the State
21Treasurer, ex-officio, as trustee, all taxes, penalties, and
22interest collected under this subsection for deposit into the
23business district retailers' occupation tax fund.
24 As soon as possible after the first day of each month,
25beginning January 1, 2011, upon certification of the Department
26of Revenue, the Comptroller shall order transferred, and the

SB2221- 91 -LRB100 13309 AWJ 27836 b
1Treasurer shall transfer, to the STAR Bonds Revenue Fund the
2local sales tax increment, as defined in the Innovation
3Development and Economy Act, collected under this subsection
4during the second preceding calendar month for sales within a
5STAR bond district.
6 After the monthly transfer to the STAR Bonds Revenue Fund,
7on or before the 25th day of each calendar month, the
8Department shall prepare and certify to the Comptroller the
9disbursement of stated sums of money to named municipalities
10from the business district retailers' occupation tax fund, the
11municipalities to be those from which suppliers and servicemen
12have paid taxes or penalties under this subsection to the
13Department during the second preceding calendar month. The
14amount to be paid to each municipality shall be the amount (not
15including credit memoranda) collected under this subsection
16during the second preceding calendar month by the Department,
17less 2% of that amount, which shall be deposited into the Tax
18Compliance and Administration Fund and shall be used by the
19Department, subject to appropriation, to cover the costs of the
20Department in administering and enforcing the provisions of
21this subsection, and not including an amount equal to the
22amount of refunds made during the second preceding calendar
23month by the Department on behalf of such municipality, and not
24including any amounts that are transferred to the STAR Bonds
25Revenue Fund. Within 10 days after receipt, by the Comptroller,
26of the disbursement certification to the municipalities,

SB2221- 92 -LRB100 13309 AWJ 27836 b
1provided for in this subsection to be given to the Comptroller
2by the Department, the Comptroller shall cause the orders to be
3drawn for the respective amounts in accordance with the
4directions contained in such certification. The proceeds of the
5tax paid to municipalities under this subsection shall be
6deposited into the Business District Tax Allocation Fund by the
7municipality.
8 An ordinance imposing or discontinuing the tax under this
9subsection or effecting a change in the rate thereof shall
10either (i) be adopted and a certified copy thereof filed with
11the Department on or before the first day of April, whereupon
12the Department, if all other requirements of this subsection
13are met, shall proceed to administer and enforce this
14subsection as of the first day of July next following the
15adoption and filing; or (ii) be adopted and a certified copy
16thereof filed with the Department on or before the first day of
17October, whereupon, if all other conditions of this subsection
18are met, the Department shall proceed to administer and enforce
19this subsection as of the first day of January next following
20the adoption and filing.
21 The Department of Revenue shall not administer or enforce
22an ordinance imposing, discontinuing, or changing the rate of
23the tax under this subsection, until the municipality also
24provides, in the manner prescribed by the Department, the
25boundaries of the business district in such a way that the
26Department can determine by its address whether a business is

SB2221- 93 -LRB100 13309 AWJ 27836 b
1located in the business district. The municipality must provide
2this boundary and address information to the Department on or
3before April 1 for administration and enforcement of the tax
4under this subsection by the Department beginning on the
5following July 1 and on or before October 1 for administration
6and enforcement of the tax under this subsection by the
7Department beginning on the following January 1. The Department
8of Revenue shall not administer or enforce any change made to
9the boundaries of a business district or address change,
10addition, or deletion until the municipality reports the
11boundary change or address change, addition, or deletion to the
12Department in the manner prescribed by the Department. The
13municipality must provide this boundary change information or
14address change, addition, or deletion to the Department on or
15before April 1 for administration and enforcement by the
16Department of the change beginning on the following July 1 and
17on or before October 1 for administration and enforcement by
18the Department of the change beginning on the following January
191. The retailers in the business district shall be responsible
20for charging the tax imposed under this subsection. If a
21retailer is incorrectly included or excluded from the list of
22those required to collect the tax under this subsection, both
23the Department of Revenue and the retailer shall be held
24harmless if they reasonably relied on information provided by
25the municipality.
26 A municipality that imposes the tax under this subsection

SB2221- 94 -LRB100 13309 AWJ 27836 b
1must submit to the Department of Revenue any other information
2as the Department may require for the administration and
3enforcement of the tax.
4 Nothing in this subsection shall be construed to authorize
5the municipality to impose a tax upon the privilege of engaging
6in any business which under the Constitution of the United
7States may not be made the subject of taxation by the State.
8 If a tax is imposed under this subsection (c), a tax shall
9also be imposed under subsection (b) of this Section.
10 (c-5) Notwithstanding any other provision of law, for the
11purpose of determining whether the taxes under subsections (a),
12(b), and (c) apply, a retail sale of fuel used by an aircraft
13shall be deemed to be a retail sale at the place where the fuel
14is delivered to the aircraft. For the purposes of this
15paragraph, "fuel" has the meaning given to that term in Section
161.19 of the Motor Fuel Tax Law.
17 (d) By ordinance, a municipality that has designated a
18business district under this Law may impose an occupation tax
19upon all persons engaged in the business district in the
20business of renting, leasing, or letting rooms in a hotel, as
21defined in the Hotel Operators' Occupation Tax Act, at a rate
22not to exceed 1% of the gross rental receipts from the renting,
23leasing, or letting of hotel rooms within the business
24district, to be imposed only in 0.25% increments, excluding,
25however, from gross rental receipts the proceeds of renting,
26leasing, or letting to permanent residents of a hotel, as

SB2221- 95 -LRB100 13309 AWJ 27836 b
1defined in the Hotel Operators' Occupation Tax Act, and
2proceeds from the tax imposed under subsection (c) of Section
313 of the Metropolitan Pier and Exposition Authority Act.
4 The tax imposed by the municipality under this subsection
5and all civil penalties that may be assessed as an incident to
6that tax shall be collected and enforced by the municipality
7imposing the tax. The municipality shall have full power to
8administer and enforce this subsection, to collect all taxes
9and penalties due under this subsection, to dispose of taxes
10and penalties so collected in the manner provided in this
11subsection, and to determine all rights to credit memoranda
12arising on account of the erroneous payment of tax or penalty
13under this subsection. In the administration of and compliance
14with this subsection, the municipality and persons who are
15subject to this subsection shall have the same rights,
16remedies, privileges, immunities, powers, and duties, shall be
17subject to the same conditions, restrictions, limitations,
18penalties, and definitions of terms, and shall employ the same
19modes of procedure as are employed with respect to a tax
20adopted by the municipality under Section 8-3-14 of this Code.
21 Persons subject to any tax imposed under the authority
22granted in this subsection may reimburse themselves for their
23tax liability for that tax by separately stating that tax as an
24additional charge, which charge may be stated in combination,
25in a single amount, with State taxes imposed under the Hotel
26Operators' Occupation Tax Act, and with any other tax.

SB2221- 96 -LRB100 13309 AWJ 27836 b
1 Nothing in this subsection shall be construed to authorize
2a municipality to impose a tax upon the privilege of engaging
3in any business which under the Constitution of the United
4States may not be made the subject of taxation by this State.
5 The proceeds of the tax imposed under this subsection shall
6be deposited into the Business District Tax Allocation Fund.
7 (e) Obligations secured by the Business District Tax
8Allocation Fund may be issued to provide for the payment or
9reimbursement of business district project costs. Those
10obligations, when so issued, shall be retired in the manner
11provided in the ordinance authorizing the issuance of those
12obligations by the receipts of taxes imposed pursuant to
13subsections (10) and (11) of Section 11-74.3-3 and by other
14revenue designated or pledged by the municipality. A
15municipality may in the ordinance pledge, for any period of
16time up to and including the dissolution date, all or any part
17of the funds in and to be deposited in the Business District
18Tax Allocation Fund to the payment of business district project
19costs and obligations. Whenever a municipality pledges all of
20the funds to the credit of a business district tax allocation
21fund to secure obligations issued or to be issued to pay or
22reimburse business district project costs, the municipality
23may specifically provide that funds remaining to the credit of
24such business district tax allocation fund after the payment of
25such obligations shall be accounted for annually and shall be
26deemed to be "surplus" funds, and such "surplus" funds shall be

SB2221- 97 -LRB100 13309 AWJ 27836 b
1expended by the municipality for any business district project
2cost as approved in the business district plan. Whenever a
3municipality pledges less than all of the monies to the credit
4of a business district tax allocation fund to secure
5obligations issued or to be issued to pay or reimburse business
6district project costs, the municipality shall provide that
7monies to the credit of the business district tax allocation
8fund and not subject to such pledge or otherwise encumbered or
9required for payment of contractual obligations for specific
10business district project costs shall be calculated annually
11and shall be deemed to be "surplus" funds, and such "surplus"
12funds shall be expended by the municipality for any business
13district project cost as approved in the business district
14plan.
15 No obligation issued pursuant to this Law and secured by a
16pledge of all or any portion of any revenues received or to be
17received by the municipality from the imposition of taxes
18pursuant to subsection (10) of Section 11-74.3-3, shall be
19deemed to constitute an economic incentive agreement under
20Section 8-11-20, notwithstanding the fact that such pledge
21provides for the sharing, rebate, or payment of retailers'
22occupation taxes or service occupation taxes imposed pursuant
23to subsection (10) of Section 11-74.3-3 and received or to be
24received by the municipality from the development or
25redevelopment of properties in the business district.
26 Without limiting the foregoing in this Section, the

SB2221- 98 -LRB100 13309 AWJ 27836 b
1municipality may further secure obligations secured by the
2business district tax allocation fund with a pledge, for a
3period not greater than the term of the obligations and in any
4case not longer than the dissolution date, of any part or any
5combination of the following: (i) net revenues of all or part
6of any business district project; (ii) taxes levied or imposed
7by the municipality on any or all property in the municipality,
8including, specifically, taxes levied or imposed by the
9municipality in a special service area pursuant to the Special
10Service Area Tax Law; (iii) the full faith and credit of the
11municipality; (iv) a mortgage on part or all of the business
12district project; or (v) any other taxes or anticipated
13receipts that the municipality may lawfully pledge.
14 Such obligations may be issued in one or more series, bear
15such date or dates, become due at such time or times as therein
16provided, but in any case not later than (i) 20 years after the
17date of issue or (ii) the dissolution date, whichever is
18earlier, bear interest payable at such intervals and at such
19rate or rates as set forth therein, except as may be limited by
20applicable law, which rate or rates may be fixed or variable,
21be in such denominations, be in such form, either coupon,
22registered, or book-entry, carry such conversion, registration
23and exchange privileges, be subject to defeasance upon such
24terms, have such rank or priority, be executed in such manner,
25be payable in such medium or payment at such place or places
26within or without the State, make provision for a corporate

SB2221- 99 -LRB100 13309 AWJ 27836 b
1trustee within or without the State with respect to such
2obligations, prescribe the rights, powers, and duties thereof
3to be exercised for the benefit of the municipality and the
4benefit of the owners of such obligations, provide for the
5holding in trust, investment, and use of moneys, funds, and
6accounts held under an ordinance, provide for assignment of and
7direct payment of the moneys to pay such obligations or to be
8deposited into such funds or accounts directly to such trustee,
9be subject to such terms of redemption with or without premium,
10and be sold at such price, all as the corporate authorities
11shall determine. No referendum approval of the electors shall
12be required as a condition to the issuance of obligations
13pursuant to this Law except as provided in this Section.
14 In the event the municipality authorizes the issuance of
15obligations pursuant to the authority of this Law secured by
16the full faith and credit of the municipality, or pledges ad
17valorem taxes pursuant to this subsection, which obligations
18are other than obligations which may be issued under home rule
19powers provided by Section 6 of Article VII of the Illinois
20Constitution or which ad valorem taxes are other than ad
21valorem taxes which may be pledged under home rule powers
22provided by Section 6 of Article VII of the Illinois
23Constitution or which are levied in a special service area
24pursuant to the Special Service Area Tax Law, the ordinance
25authorizing the issuance of those obligations or pledging those
26taxes shall be published within 10 days after the ordinance has

SB2221- 100 -LRB100 13309 AWJ 27836 b
1been adopted, in a newspaper having a general circulation
2within the municipality. The publication of the ordinance shall
3be accompanied by a notice of (i) the specific number of voters
4required to sign a petition requesting the question of the
5issuance of the obligations or pledging such ad valorem taxes
6to be submitted to the electors; (ii) the time within which the
7petition must be filed; and (iii) the date of the prospective
8referendum. The municipal clerk shall provide a petition form
9to any individual requesting one.
10 If no petition is filed with the municipal clerk, as
11hereinafter provided in this Section, within 21 days after the
12publication of the ordinance, the ordinance shall be in effect.
13However, if within that 21-day period a petition is filed with
14the municipal clerk, signed by electors numbering not less than
1515% of the number of electors voting for the mayor or president
16at the last general municipal election, asking that the
17question of issuing obligations using full faith and credit of
18the municipality as security for the cost of paying or
19reimbursing business district project costs, or of pledging
20such ad valorem taxes for the payment of those obligations, or
21both, be submitted to the electors of the municipality, the
22municipality shall not be authorized to issue obligations of
23the municipality using the full faith and credit of the
24municipality as security or pledging such ad valorem taxes for
25the payment of those obligations, or both, until the
26proposition has been submitted to and approved by a majority of

SB2221- 101 -LRB100 13309 AWJ 27836 b
1the voters voting on the proposition at a regularly scheduled
2election. The municipality shall certify the proposition to the
3proper election authorities for submission in accordance with
4the general election law.
5 The ordinance authorizing the obligations may provide that
6the obligations shall contain a recital that they are issued
7pursuant to this Law, which recital shall be conclusive
8evidence of their validity and of the regularity of their
9issuance.
10 In the event the municipality authorizes issuance of
11obligations pursuant to this Law secured by the full faith and
12credit of the municipality, the ordinance authorizing the
13obligations may provide for the levy and collection of a direct
14annual tax upon all taxable property within the municipality
15sufficient to pay the principal thereof and interest thereon as
16it matures, which levy may be in addition to and exclusive of
17the maximum of all other taxes authorized to be levied by the
18municipality, which levy, however, shall be abated to the
19extent that monies from other sources are available for payment
20of the obligations and the municipality certifies the amount of
21those monies available to the county clerk.
22 A certified copy of the ordinance shall be filed with the
23county clerk of each county in which any portion of the
24municipality is situated, and shall constitute the authority
25for the extension and collection of the taxes to be deposited
26in the business district tax allocation fund.

SB2221- 102 -LRB100 13309 AWJ 27836 b
1 A municipality may also issue its obligations to refund, in
2whole or in part, obligations theretofore issued by the
3municipality under the authority of this Law, whether at or
4prior to maturity. However, the last maturity of the refunding
5obligations shall not be expressed to mature later than the
6dissolution date.
7 In the event a municipality issues obligations under home
8rule powers or other legislative authority, the proceeds of
9which are pledged to pay or reimburse business district project
10costs, the municipality may, if it has followed the procedures
11in conformance with this Law, retire those obligations from
12funds in the business district tax allocation fund in amounts
13and in such manner as if those obligations had been issued
14pursuant to the provisions of this Law.
15 No obligations issued pursuant to this Law shall be
16regarded as indebtedness of the municipality issuing those
17obligations or any other taxing district for the purpose of any
18limitation imposed by law.
19 Obligations issued pursuant to this Law shall not be
20subject to the provisions of the Bond Authorization Act.
21 (f) When business district project costs, including,
22without limitation, all obligations paying or reimbursing
23business district project costs have been paid, any surplus
24funds then remaining in the Business District Tax Allocation
25Fund shall be distributed to the municipal treasurer for
26deposit into the general corporate fund of the municipality.

SB2221- 103 -LRB100 13309 AWJ 27836 b
1Upon payment of all business district project costs and
2retirement of all obligations paying or reimbursing business
3district project costs, but in no event more than 23 years
4after the date of adoption of the ordinance imposing taxes
5pursuant to subsection (10) or (11) of Section 11-74.3-3, the
6municipality shall adopt an ordinance immediately rescinding
7the taxes imposed pursuant to subsection (10) or (11) of
8Section 11-74.3-3.
9(Source: P.A. 99-143, eff. 7-27-15.)
10 Section 25. The Civic Center Code is amended by changing
11Section 245-12 as follows:
12 (70 ILCS 200/245-12)
13 Sec. 245-12. Use and occupation taxes.
14 (a) The Authority may adopt a resolution that authorizes a
15referendum on the question of whether the Authority shall be
16authorized to impose a retailers' occupation tax, a service
17occupation tax, and a use tax in one-quarter percent increments
18at a rate not to exceed 1%. The Authority shall certify the
19question to the proper election authorities who shall submit
20the question to the voters of the metropolitan area at the next
21regularly scheduled election in accordance with the general
22election law. The question shall be in substantially the
23following form:
24 "Shall the Salem Civic Center Authority be authorized to

SB2221- 104 -LRB100 13309 AWJ 27836 b
1 impose a retailers' occupation tax, a service occupation
2 tax, and a use tax at the rate of (rate) for the sole
3 purpose of obtaining funds for the support, construction,
4 maintenance, or financing of a facility of the Authority?"
5 Votes shall be recorded as "yes" or "no". If a majority of
6all votes cast on the proposition are in favor of the
7proposition, the Authority is authorized to impose the tax.
8 (b) The Authority shall impose the retailers' occupation
9tax upon all persons engaged in the business of selling
10tangible personal property at retail in the metropolitan area,
11at the rate approved by referendum, on the gross receipts from
12the sales made in the course of such business within the
13metropolitan area. The tax imposed under this Section and all
14civil penalties that may be assessed as an incident thereof
15shall be collected and enforced by the Department of Revenue.
16The Department has full power to administer and enforce this
17Section; to collect all taxes and penalties so collected in the
18manner provided in this Section; and to determine all rights to
19credit memoranda arising on account of the erroneous payment of
20tax or penalty hereunder. In the administration of, and
21compliance with, this Section, the Department and persons who
22are subject to this Section shall (i) have the same rights,
23remedies, privileges, immunities, powers and duties, (ii) be
24subject to the same conditions, restrictions, limitations,
25penalties, exclusions, exemptions, and definitions of terms,
26and (iii) employ the same modes of procedure as are prescribed

SB2221- 105 -LRB100 13309 AWJ 27836 b
1in Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2,
22-5, 2-5.5, 2-10 (in respect to all provisions therein other
3than the State rate of tax), 2-12, 2-15 through 2-70, 2a, 2b,
42c, 3 (except as to the disposition of taxes and penalties
5collected and provisions related to quarter monthly payments),
64, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c,
77, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation
8Tax Act and Section 3-7 of the Uniform Penalty and Interest
9Act, as fully as if those provisions were set forth in this
10subsection.
11 Persons subject to any tax imposed under this subsection
12may reimburse themselves for their seller's tax liability by
13separately stating the tax as an additional charge, which
14charge may be stated in combination, in a single amount, with
15State taxes that sellers are required to collect, in accordance
16with such bracket schedules as the Department may prescribe.
17 Whenever the Department determines that a refund should be
18made under this subsection to a claimant instead of issuing a
19credit memorandum, the Department shall notify the State
20Comptroller, who shall cause the warrant to be drawn for the
21amount specified, and to the person named, in the notification
22from the Department. The refund shall be paid by the State
23Treasurer out of the tax fund referenced under paragraph (g) of
24this Section.
25 If a tax is imposed under this subsection (b), a tax shall
26also be imposed at the same rate under subsections (c) and (d)

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1of this Section.
2 For the purpose of determining whether a tax authorized
3under this Section is applicable, a retail sale, by a producer
4of coal or other mineral mined in Illinois, is a sale at retail
5at the place where the coal or other mineral mined in Illinois
6is extracted from the earth. This paragraph does not apply to
7coal or other mineral when it is delivered or shipped by the
8seller to the purchaser at a point outside Illinois so that the
9sale is exempt under the Federal Constitution as a sale in
10interstate or foreign commerce.
11 Notwithstanding any other provision of law, for the purpose
12of determining whether a tax authorized under this Section is
13applicable, a retail sale of fuel used by an aircraft shall be
14deemed to be a retail sale at the place where the fuel is
15delivered to the aircraft. For the purposes of this paragraph,
16"fuel" has the meaning given to that term in Section 1.19 of
17the Motor Fuel Tax Law.
18 Nothing in this Section shall be construed to authorize the
19Authority to impose a tax upon the privilege of engaging in any
20business which under the Constitution of the United States may
21not be made the subject of taxation by this State.
22 (c) If a tax has been imposed under subsection (b), a
23service occupation tax shall also be imposed at the same rate
24upon all persons engaged, in the metropolitan area, in the
25business of making sales of service, who, as an incident to
26making those sales of service, transfer tangible personal

SB2221- 107 -LRB100 13309 AWJ 27836 b
1property within the metropolitan area as an incident to a sale
2of service. The tax imposed under this subsection and all civil
3penalties that may be assessed as an incident thereof shall be
4collected and enforced by the Department of Revenue. The
5Department has full power to administer and enforce this
6paragraph; to collect all taxes and penalties due hereunder; to
7dispose of taxes and penalties so collected in the manner
8hereinafter provided; and to determine all rights to credit
9memoranda arising on account of the erroneous payment of tax or
10penalty hereunder. In the administration of, and compliance
11with this paragraph, the Department and persons who are subject
12to this paragraph shall (i) have the same rights, remedies,
13privileges, immunities, powers, and duties, (ii) be subject to
14the same conditions, restrictions, limitations, penalties,
15exclusions, exemptions, and definitions of terms, and (iii)
16employ the same modes of procedure as are prescribed in
17Sections 2 (except that the reference to State in the
18definition of supplier maintaining a place of business in this
19State shall mean the metropolitan area), 2a, 2b, 3 through 3-55
20(in respect to all provisions therein other than the State rate
21of tax), 4 (except that the reference to the State shall be to
22the Authority), 5, 7, 8 (except that the jurisdiction to which
23the tax shall be a debt to the extent indicated in that Section
248 shall be the Authority), 9 (except as to the disposition of
25taxes and penalties collected, and except that the returned
26merchandise credit for this tax may not be taken against any

SB2221- 108 -LRB100 13309 AWJ 27836 b
1State tax), 11, 12 (except the reference therein to Section 2b
2of the Retailers' Occupation Tax Act), 13 (except that any
3reference to the State shall mean the Authority), 15, 16, 17,
418, 19 and 20 of the Service Occupation Tax Act and Section 3-7
5of the Uniform Penalty and Interest Act, as fully as if those
6provisions were set forth herein.
7 Persons subject to any tax imposed under the authority
8granted in this subsection may reimburse themselves for their
9serviceman's tax liability by separately stating the tax as an
10additional charge, which charge may be stated in combination,
11in a single amount, with State tax that servicemen are
12authorized to collect under the Service Use Tax Act, in
13accordance with such bracket schedules as the Department may
14prescribe.
15 Whenever the Department determines that a refund should be
16made under this subsection to a claimant instead of issuing a
17credit memorandum, the Department shall notify the State
18Comptroller, who shall cause the warrant to be drawn for the
19amount specified, and to the person named, in the notification
20from the Department. The refund shall be paid by the State
21Treasurer out of the tax fund referenced under paragraph (g) of
22this Section.
23 Nothing in this paragraph shall be construed to authorize
24the Authority to impose a tax upon the privilege of engaging in
25any business which under the Constitution of the United States
26may not be made the subject of taxation by the State.

SB2221- 109 -LRB100 13309 AWJ 27836 b
1 (d) If a tax has been imposed under subsection (b), a use
2tax shall also be imposed at the same rate upon the privilege
3of using, in the metropolitan area, any item of tangible
4personal property that is purchased outside the metropolitan
5area at retail from a retailer, and that is titled or
6registered at a location within the metropolitan area with an
7agency of this State's government. "Selling price" is defined
8as in the Use Tax Act. The tax shall be collected from persons
9whose Illinois address for titling or registration purposes is
10given as being in the metropolitan area. The tax shall be
11collected by the Department of Revenue for the Authority. The
12tax must be paid to the State, or an exemption determination
13must be obtained from the Department of Revenue, before the
14title or certificate of registration for the property may be
15issued. The tax or proof of exemption may be transmitted to the
16Department by way of the State agency with which, or the State
17officer with whom, the tangible personal property must be
18titled or registered if the Department and the State agency or
19State officer determine that this procedure will expedite the
20processing of applications for title or registration.
21 The Department has full power to administer and enforce
22this paragraph; to collect all taxes, penalties and interest
23due hereunder; to dispose of taxes, penalties and interest so
24collected in the manner hereinafter provided; and to determine
25all rights to credit memoranda or refunds arising on account of
26the erroneous payment of tax, penalty or interest hereunder. In

SB2221- 110 -LRB100 13309 AWJ 27836 b
1the administration of, and compliance with, this subsection,
2the Department and persons who are subject to this paragraph
3shall (i) have the same rights, remedies, privileges,
4immunities, powers, and duties, (ii) be subject to the same
5conditions, restrictions, limitations, penalties, exclusions,
6exemptions, and definitions of terms, and (iii) employ the same
7modes of procedure as are prescribed in Sections 2 (except the
8definition of "retailer maintaining a place of business in this
9State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, 4, 6,
107, 8 (except that the jurisdiction to which the tax shall be a
11debt to the extent indicated in that Section 8 shall be the
12Authority), 9 (except provisions relating to quarter monthly
13payments), 10, 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22
14of the Use Tax Act and Section 3-7 of the Uniform Penalty and
15Interest Act, that are not inconsistent with this paragraph, as
16fully as if those provisions were set forth herein.
17 Whenever the Department determines that a refund should be
18made under this subsection to a claimant instead of issuing a
19credit memorandum, the Department shall notify the State
20Comptroller, who shall cause the order to be drawn for the
21amount specified, and to the person named, in the notification
22from the Department. The refund shall be paid by the State
23Treasurer out of the tax fund referenced under paragraph (g) of
24this Section.
25 (e) A certificate of registration issued by the State
26Department of Revenue to a retailer under the Retailers'

SB2221- 111 -LRB100 13309 AWJ 27836 b
1Occupation Tax Act or under the Service Occupation Tax Act
2shall permit the registrant to engage in a business that is
3taxed under the tax imposed under paragraphs (b), (c), or (d)
4of this Section and no additional registration shall be
5required. A certificate issued under the Use Tax Act or the
6Service Use Tax Act shall be applicable with regard to any tax
7imposed under paragraph (c) of this Section.
8 (f) The results of any election authorizing a proposition
9to impose a tax under this Section or effecting a change in the
10rate of tax shall be certified by the proper election
11authorities and filed with the Illinois Department on or before
12the first day of April. In addition, an ordinance imposing,
13discontinuing, or effecting a change in the rate of tax under
14this Section shall be adopted and a certified copy thereof
15filed with the Department on or before the first day of April.
16After proper receipt of such certifications, the Department
17shall proceed to administer and enforce this Section as of the
18first day of July next following such adoption and filing.
19 (g) The Department of Revenue shall, upon collecting any
20taxes and penalties as provided in this Section, pay the taxes
21and penalties over to the State Treasurer as trustee for the
22Authority. The taxes and penalties shall be held in a trust
23fund outside the State Treasury. On or before the 25th day of
24each calendar month, the Department of Revenue shall prepare
25and certify to the Comptroller of the State of Illinois the
26amount to be paid to the Authority, which shall be the balance

SB2221- 112 -LRB100 13309 AWJ 27836 b
1in the fund, less any amount determined by the Department to be
2necessary for the payment of refunds. Within 10 days after
3receipt by the Comptroller of the certification of the amount
4to be paid to the Authority, the Comptroller shall cause an
5order to be drawn for payment for the amount in accordance with
6the directions contained in the certification. Amounts
7received from the tax imposed under this Section shall be used
8only for the support, construction, maintenance, or financing
9of a facility of the Authority.
10 (h) When certifying the amount of a monthly disbursement to
11the Authority under this Section, the Department shall increase
12or decrease the amounts by an amount necessary to offset any
13miscalculation of previous disbursements. The offset amount
14shall be the amount erroneously disbursed within the previous 6
15months from the time a miscalculation is discovered.
16 (i) This Section may be cited as the Salem Civic Center Use
17and Occupation Tax Law.
18(Source: P.A. 98-1098, eff. 8-26-14.)
19 Section 30. The Flood Prevention District Act is amended by
20changing Section 25 as follows:
21 (70 ILCS 750/25)
22 Sec. 25. Flood prevention retailers' and service
23occupation taxes.
24 (a) If the Board of Commissioners of a flood prevention

SB2221- 113 -LRB100 13309 AWJ 27836 b
1district determines that an emergency situation exists
2regarding levee repair or flood prevention, and upon an
3ordinance confirming the determination adopted by the
4affirmative vote of a majority of the members of the county
5board of the county in which the district is situated, the
6county may impose a flood prevention retailers' occupation tax
7upon all persons engaged in the business of selling tangible
8personal property at retail within the territory of the
9district to provide revenue to pay the costs of providing
10emergency levee repair and flood prevention and to secure the
11payment of bonds, notes, and other evidences of indebtedness
12issued under this Act for a period not to exceed 25 years or as
13required to repay the bonds, notes, and other evidences of
14indebtedness issued under this Act. The tax rate shall be 0.25%
15of the gross receipts from all taxable sales made in the course
16of that business. The tax imposed under this Section and all
17civil penalties that may be assessed as an incident thereof
18shall be collected and enforced by the State Department of
19Revenue. The Department shall have full power to administer and
20enforce this Section; to collect all taxes and penalties so
21collected in the manner hereinafter provided; and to determine
22all rights to credit memoranda arising on account of the
23erroneous payment of tax or penalty hereunder.
24 In the administration of and compliance with this
25subsection, the Department and persons who are subject to this
26subsection (i) have the same rights, remedies, privileges,

SB2221- 114 -LRB100 13309 AWJ 27836 b
1immunities, powers, and duties, (ii) are subject to the same
2conditions, restrictions, limitations, penalties, and
3definitions of terms, and (iii) shall employ the same modes of
4procedure as are set forth in Sections 1 through 1o, 2 through
52-70 (in respect to all provisions contained in those Sections
6other than the State rate of tax), 2a through 2h, 3 (except as
7to the disposition of taxes and penalties collected), 4, 5, 5a,
85b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
910, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
10and all provisions of the Uniform Penalty and Interest Act as
11if those provisions were set forth in this subsection.
12 Persons subject to any tax imposed under this Section may
13reimburse themselves for their seller's tax liability
14hereunder by separately stating the tax as an additional
15charge, which charge may be stated in combination in a single
16amount with State taxes that sellers are required to collect
17under the Use Tax Act, under any bracket schedules the
18Department may prescribe.
19 If a tax is imposed under this subsection (a), a tax shall
20also be imposed under subsection (b) of this Section.
21 (b) If a tax has been imposed under subsection (a), a flood
22prevention service occupation tax shall also be imposed upon
23all persons engaged within the territory of the district in the
24business of making sales of service, who, as an incident to
25making the sales of service, transfer tangible personal
26property, either in the form of tangible personal property or

SB2221- 115 -LRB100 13309 AWJ 27836 b
1in the form of real estate as an incident to a sale of service
2to provide revenue to pay the costs of providing emergency
3levee repair and flood prevention and to secure the payment of
4bonds, notes, and other evidences of indebtedness issued under
5this Act for a period not to exceed 25 years or as required to
6repay the bonds, notes, and other evidences of indebtedness.
7The tax rate shall be 0.25% of the selling price of all
8tangible personal property transferred.
9 The tax imposed under this subsection and all civil
10penalties that may be assessed as an incident thereof shall be
11collected and enforced by the State Department of Revenue. The
12Department shall have full power to administer and enforce this
13subsection; to collect all taxes and penalties due hereunder;
14to dispose of taxes and penalties collected in the manner
15hereinafter provided; and to determine all rights to credit
16memoranda arising on account of the erroneous payment of tax or
17penalty hereunder.
18 In the administration of and compliance with this
19subsection, the Department and persons who are subject to this
20subsection shall (i) have the same rights, remedies,
21privileges, immunities, powers, and duties, (ii) be subject to
22the same conditions, restrictions, limitations, penalties, and
23definitions of terms, and (iii) employ the same modes of
24procedure as are set forth in Sections 2 (except that the
25reference to State in the definition of supplier maintaining a
26place of business in this State means the district), 2a through

SB2221- 116 -LRB100 13309 AWJ 27836 b
12d, 3 through 3-50 (in respect to all provisions contained in
2those Sections other than the State rate of tax), 4 (except
3that the reference to the State shall be to the district), 5,
47, 8 (except that the jurisdiction to which the tax is a debt
5to the extent indicated in that Section 8 is the district), 9
6(except as to the disposition of taxes and penalties
7collected), 10, 11, 12 (except the reference therein to Section
82b of the Retailers' Occupation Tax Act), 13 (except that any
9reference to the State means the district), Section 15, 16, 17,
1018, 19, and 20 of the Service Occupation Tax Act and all
11provisions of the Uniform Penalty and Interest Act, as fully as
12if those provisions were set forth herein.
13 Persons subject to any tax imposed under the authority
14granted in this subsection may reimburse themselves for their
15serviceman's tax liability hereunder by separately stating the
16tax as an additional charge, that charge may be stated in
17combination in a single amount with State tax that servicemen
18are authorized to collect under the Service Use Tax Act, under
19any bracket schedules the Department may prescribe.
20 (c) The taxes imposed in subsections (a) and (b) may not be
21imposed on personal property titled or registered with an
22agency of the State; food for human consumption that is to be
23consumed off the premises where it is sold (other than
24alcoholic beverages, soft drinks, and food that has been
25prepared for immediate consumption); prescription and
26non-prescription medicines, drugs, and medical appliances;

SB2221- 117 -LRB100 13309 AWJ 27836 b
1modifications to a motor vehicle for the purpose of rendering
2it usable by a person with a disability; or insulin, urine
3testing materials, and syringes and needles used by diabetics.
4 (c-5) Notwithstanding any other provision of law, for the
5purpose of determining whether a tax authorized under this
6Section is applicable, a retail sale of fuel used by an
7aircraft shall be deemed to be a retail sale at the place where
8the fuel is delivered to the aircraft. For the purposes of this
9paragraph, "fuel" has the meaning given to that term in Section
101.19 of the Motor Fuel Tax Law.
11 (d) Nothing in this Section shall be construed to authorize
12the district to impose a tax upon the privilege of engaging in
13any business that under the Constitution of the United States
14may not be made the subject of taxation by the State.
15 (e) The certificate of registration that is issued by the
16Department to a retailer under the Retailers' Occupation Tax
17Act or a serviceman under the Service Occupation Tax Act
18permits the retailer or serviceman to engage in a business that
19is taxable without registering separately with the Department
20under an ordinance or resolution under this Section.
21 (f) The Department shall immediately pay over to the State
22Treasurer, ex officio, as trustee, all taxes and penalties
23collected under this Section to be deposited into the Flood
24Prevention Occupation Tax Fund, which shall be an
25unappropriated trust fund held outside the State treasury.
26 On or before the 25th day of each calendar month, the

SB2221- 118 -LRB100 13309 AWJ 27836 b
1Department shall prepare and certify to the Comptroller the
2disbursement of stated sums of money to the counties from which
3retailers or servicemen have paid taxes or penalties to the
4Department during the second preceding calendar month. The
5amount to be paid to each county is equal to the amount (not
6including credit memoranda) collected from the county under
7this Section during the second preceding calendar month by the
8Department, (i) less 2% of that amount, which shall be
9deposited into the Tax Compliance and Administration Fund and
10shall be used by the Department in administering and enforcing
11the provisions of this Section on behalf of the county, (ii)
12plus an amount that the Department determines is necessary to
13offset any amounts that were erroneously paid to a different
14taxing body; (iii) less an amount equal to the amount of
15refunds made during the second preceding calendar month by the
16Department on behalf of the county; and (iv) less any amount
17that the Department determines is necessary to offset any
18amounts that were payable to a different taxing body but were
19erroneously paid to the county. When certifying the amount of a
20monthly disbursement to a county under this Section, the
21Department shall increase or decrease the amounts by an amount
22necessary to offset any miscalculation of previous
23disbursements within the previous 6 months from the time a
24miscalculation is discovered.
25 Within 10 days after receipt by the Comptroller from the
26Department of the disbursement certification to the counties

SB2221- 119 -LRB100 13309 AWJ 27836 b
1provided for in this Section, the Comptroller shall cause the
2orders to be drawn for the respective amounts in accordance
3with directions contained in the certification.
4 If the Department determines that a refund should be made
5under this Section to a claimant instead of issuing a credit
6memorandum, then the Department shall notify the Comptroller,
7who shall cause the order to be drawn for the amount specified
8and to the person named in the notification from the
9Department. The refund shall be paid by the Treasurer out of
10the Flood Prevention Occupation Tax Fund.
11 (g) If a county imposes a tax under this Section, then the
12county board shall, by ordinance, discontinue the tax upon the
13payment of all indebtedness of the flood prevention district.
14The tax shall not be discontinued until all indebtedness of the
15District has been paid.
16 (h) Any ordinance imposing the tax under this Section, or
17any ordinance that discontinues the tax, must be certified by
18the county clerk and filed with the Illinois Department of
19Revenue either (i) on or before the first day of April,
20whereupon the Department shall proceed to administer and
21enforce the tax or change in the rate as of the first day of
22July next following the filing; or (ii) on or before the first
23day of October, whereupon the Department shall proceed to
24administer and enforce the tax or change in the rate as of the
25first day of January next following the filing.
26 (j) County Flood Prevention Occupation Tax Fund. All

SB2221- 120 -LRB100 13309 AWJ 27836 b
1proceeds received by a county from a tax distribution under
2this Section must be maintained in a special fund known as the
3[name of county] flood prevention occupation tax fund. The
4county shall, at the direction of the flood prevention
5district, use moneys in the fund to pay the costs of providing
6emergency levee repair and flood prevention and to pay bonds,
7notes, and other evidences of indebtedness issued under this
8Act.
9 (k) This Section may be cited as the Flood Prevention
10Occupation Tax Law.
11(Source: P.A. 99-143, eff. 7-27-15; 99-217, eff. 7-31-15;
1299-642, eff. 7-28-16.)
13 Section 35. The Metro-East Park and Recreation District Act
14is amended by changing Section 30 as follows:
15 (70 ILCS 1605/30)
16 Sec. 30. Taxes.
17 (a) The board shall impose a tax upon all persons engaged
18in the business of selling tangible personal property, other
19than personal property titled or registered with an agency of
20this State's government, at retail in the District on the gross
21receipts from the sales made in the course of business. This
22tax shall be imposed only at the rate of one-tenth of one per
23cent.
24 This additional tax may not be imposed on the sales of food

SB2221- 121 -LRB100 13309 AWJ 27836 b
1for human consumption that is to be consumed off the premises
2where it is sold (other than alcoholic beverages, soft drinks,
3and food which has been prepared for immediate consumption) and
4prescription and non-prescription medicines, drugs, medical
5appliances, and insulin, urine testing materials, syringes,
6and needles used by diabetics. The tax imposed by the Board
7under this Section and all civil penalties that may be assessed
8as an incident of the tax shall be collected and enforced by
9the Department of Revenue. The certificate of registration that
10is issued by the Department to a retailer under the Retailers'
11Occupation Tax Act shall permit the retailer to engage in a
12business that is taxable without registering separately with
13the Department under an ordinance or resolution under this
14Section. The Department has full power to administer and
15enforce this Section, to collect all taxes and penalties due
16under this Section, to dispose of taxes and penalties so
17collected in the manner provided in this Section, and to
18determine all rights to credit memoranda arising on account of
19the erroneous payment of a tax or penalty under this Section.
20In the administration of and compliance with this Section, the
21Department and persons who are subject to this Section shall
22(i) have the same rights, remedies, privileges, immunities,
23powers, and duties, (ii) be subject to the same conditions,
24restrictions, limitations, penalties, and definitions of
25terms, and (iii) employ the same modes of procedure as are
26prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,

SB2221- 122 -LRB100 13309 AWJ 27836 b
11n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions contained
2in those Sections other than the State rate of tax), 2-12, 2-15
3through 2-70, 2a, 2b, 2c, 3 (except provisions relating to
4transaction returns and quarter monthly payments), 4, 5, 5a,
55b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
67, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation
7Tax Act and the Uniform Penalty and Interest Act as if those
8provisions were set forth in this Section.
9 Persons subject to any tax imposed under the authority
10granted in this Section may reimburse themselves for their
11sellers' tax liability by separately stating the tax as an
12additional charge, which charge may be stated in combination,
13in a single amount, with State tax which sellers are required
14to collect under the Use Tax Act, pursuant to such bracketed
15schedules as the Department may prescribe.
16 Whenever the Department determines that a refund should be
17made under this Section to a claimant instead of issuing a
18credit memorandum, the Department shall notify the State
19Comptroller, who shall cause the order to be drawn for the
20amount specified and to the person named in the notification
21from the Department. The refund shall be paid by the State
22Treasurer out of the State Metro-East Park and Recreation
23District Fund.
24 (b) If a tax has been imposed under subsection (a), a
25service occupation tax shall also be imposed at the same rate
26upon all persons engaged, in the District, in the business of

SB2221- 123 -LRB100 13309 AWJ 27836 b
1making sales of service, who, as an incident to making those
2sales of service, transfer tangible personal property within
3the District as an incident to a sale of service. This tax may
4not be imposed on sales of food for human consumption that is
5to be consumed off the premises where it is sold (other than
6alcoholic beverages, soft drinks, and food prepared for
7immediate consumption) and prescription and non-prescription
8medicines, drugs, medical appliances, and insulin, urine
9testing materials, syringes, and needles used by diabetics. The
10tax imposed under this subsection and all civil penalties that
11may be assessed as an incident thereof shall be collected and
12enforced by the Department of Revenue. The Department has full
13power to administer and enforce this subsection; to collect all
14taxes and penalties due hereunder; to dispose of taxes and
15penalties so collected in the manner hereinafter provided; and
16to determine all rights to credit memoranda arising on account
17of the erroneous payment of tax or penalty hereunder. In the
18administration of, and compliance with this subsection, the
19Department and persons who are subject to this paragraph shall
20(i) have the same rights, remedies, privileges, immunities,
21powers, and duties, (ii) be subject to the same conditions,
22restrictions, limitations, penalties, exclusions, exemptions,
23and definitions of terms, and (iii) employ the same modes of
24procedure as are prescribed in Sections 2 (except that the
25reference to State in the definition of supplier maintaining a
26place of business in this State shall mean the District), 2a,

SB2221- 124 -LRB100 13309 AWJ 27836 b
12b, 2c, 3 through 3-50 (in respect to all provisions therein
2other than the State rate of tax), 4 (except that the reference
3to the State shall be to the District), 5, 7, 8 (except that
4the jurisdiction to which the tax shall be a debt to the extent
5indicated in that Section 8 shall be the District), 9 (except
6as to the disposition of taxes and penalties collected), 10,
711, 12 (except the reference therein to Section 2b of the
8Retailers' Occupation Tax Act), 13 (except that any reference
9to the State shall mean the District), Sections 15, 16, 17, 18,
1019 and 20 of the Service Occupation Tax Act and the Uniform
11Penalty and Interest Act, as fully as if those provisions were
12set forth herein.
13 Persons subject to any tax imposed under the authority
14granted in this subsection may reimburse themselves for their
15serviceman's tax liability by separately stating the tax as an
16additional charge, which charge may be stated in combination,
17in a single amount, with State tax that servicemen are
18authorized to collect under the Service Use Tax Act, in
19accordance with such bracket schedules as the Department may
20prescribe.
21 Whenever the Department determines that a refund should be
22made under this subsection to a claimant instead of issuing a
23credit memorandum, the Department shall notify the State
24Comptroller, who shall cause the warrant to be drawn for the
25amount specified, and to the person named, in the notification
26from the Department. The refund shall be paid by the State

SB2221- 125 -LRB100 13309 AWJ 27836 b
1Treasurer out of the State Metro-East Park and Recreation
2District Fund.
3 Nothing in this subsection shall be construed to authorize
4the board to impose a tax upon the privilege of engaging in any
5business which under the Constitution of the United States may
6not be made the subject of taxation by the State.
7 (c) The Department shall immediately pay over to the State
8Treasurer, ex officio, as trustee, all taxes and penalties
9collected under this Section to be deposited into the State
10Metro-East Park and Recreation District Fund, which shall be an
11unappropriated trust fund held outside of the State treasury.
12 As soon as possible after the first day of each month,
13beginning January 1, 2011, upon certification of the Department
14of Revenue, the Comptroller shall order transferred, and the
15Treasurer shall transfer, to the STAR Bonds Revenue Fund the
16local sales tax increment, as defined in the Innovation
17Development and Economy Act, collected under this Section
18during the second preceding calendar month for sales within a
19STAR bond district. The Department shall make this
20certification only if the Metro East Park and Recreation
21District imposes a tax on real property as provided in the
22definition of "local sales taxes" under the Innovation
23Development and Economy Act.
24 After the monthly transfer to the STAR Bonds Revenue Fund,
25on or before the 25th day of each calendar month, the
26Department shall prepare and certify to the Comptroller the

SB2221- 126 -LRB100 13309 AWJ 27836 b
1disbursement of stated sums of money pursuant to Section 35 of
2this Act to the District from which retailers have paid taxes
3or penalties to the Department during the second preceding
4calendar month. The amount to be paid to the District shall be
5the amount (not including credit memoranda) collected under
6this Section during the second preceding calendar month by the
7Department plus an amount the Department determines is
8necessary to offset any amounts that were erroneously paid to a
9different taxing body, and not including (i) an amount equal to
10the amount of refunds made during the second preceding calendar
11month by the Department on behalf of the District, (ii) any
12amount that the Department determines is necessary to offset
13any amounts that were payable to a different taxing body but
14were erroneously paid to the District, and (iii) any amounts
15that are transferred to the STAR Bonds Revenue Fund. Within 10
16days after receipt by the Comptroller of the disbursement
17certification to the District provided for in this Section to
18be given to the Comptroller by the Department, the Comptroller
19shall cause the orders to be drawn for the respective amounts
20in accordance with directions contained in the certification.
21 (d) For the purpose of determining whether a tax authorized
22under this Section is applicable, a retail sale by a producer
23of coal or another mineral mined in Illinois is a sale at
24retail at the place where the coal or other mineral mined in
25Illinois is extracted from the earth. This paragraph does not
26apply to coal or another mineral when it is delivered or

SB2221- 127 -LRB100 13309 AWJ 27836 b
1shipped by the seller to the purchaser at a point outside
2Illinois so that the sale is exempt under the United States
3Constitution as a sale in interstate or foreign commerce.
4 Notwithstanding any other provision of law, for the purpose
5of determining whether a tax authorized under this Section is
6applicable, a retail sale of fuel used by an aircraft shall be
7deemed to be a retail sale at the place where the fuel is
8delivered to the aircraft. For the purposes of this paragraph,
9"fuel" has the meaning given to that term in Section 1.19 of
10the Motor Fuel Tax Law.
11 (e) Nothing in this Section shall be construed to authorize
12the board to impose a tax upon the privilege of engaging in any
13business that under the Constitution of the United States may
14not be made the subject of taxation by this State.
15 (f) An ordinance imposing a tax under this Section or an
16ordinance extending the imposition of a tax to an additional
17county or counties shall be certified by the board and filed
18with the Department of Revenue either (i) on or before the
19first day of April, whereupon the Department shall proceed to
20administer and enforce the tax as of the first day of July next
21following the filing; or (ii) on or before the first day of
22October, whereupon the Department shall proceed to administer
23and enforce the tax as of the first day of January next
24following the filing.
25 (g) When certifying the amount of a monthly disbursement to
26the District under this Section, the Department shall increase

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1or decrease the amounts by an amount necessary to offset any
2misallocation of previous disbursements. The offset amount
3shall be the amount erroneously disbursed within the previous 6
4months from the time a misallocation is discovered.
5(Source: P.A. 98-1098, eff. 8-26-14; 99-217, eff. 7-31-15.)
6 Section 40. The Local Mass Transit District Act is amended
7by changing Section 5.01 as follows:
8 (70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
9 Sec. 5.01. Metro East Mass Transit District; use and
10occupation taxes.
11 (a) The Board of Trustees of any Metro East Mass Transit
12District may, by ordinance adopted with the concurrence of
13two-thirds of the then trustees, impose throughout the District
14any or all of the taxes and fees provided in this Section. All
15taxes and fees imposed under this Section shall be used only
16for public mass transportation systems, and the amount used to
17provide mass transit service to unserved areas of the District
18shall be in the same proportion to the total proceeds as the
19number of persons residing in the unserved areas is to the
20total population of the District. Except as otherwise provided
21in this Act, taxes imposed under this Section and civil
22penalties imposed incident thereto shall be collected and
23enforced by the State Department of Revenue. The Department
24shall have the power to administer and enforce the taxes and to

SB2221- 129 -LRB100 13309 AWJ 27836 b
1determine all rights for refunds for erroneous payments of the
2taxes.
3 (b) The Board may impose a Metro East Mass Transit District
4Retailers' Occupation Tax upon all persons engaged in the
5business of selling tangible personal property at retail in the
6district at a rate of 1/4 of 1%, or as authorized under
7subsection (d-5) of this Section, of the gross receipts from
8the sales made in the course of such business within the
9district. The tax imposed under this Section and all civil
10penalties that may be assessed as an incident thereof shall be
11collected and enforced by the State Department of Revenue. The
12Department shall have full power to administer and enforce this
13Section; to collect all taxes and penalties so collected in the
14manner hereinafter provided; and to determine all rights to
15credit memoranda arising on account of the erroneous payment of
16tax or penalty hereunder. In the administration of, and
17compliance with, this Section, the Department and persons who
18are subject to this Section shall have the same rights,
19remedies, privileges, immunities, powers and duties, and be
20subject to the same conditions, restrictions, limitations,
21penalties, exclusions, exemptions and definitions of terms and
22employ the same modes of procedure, as are prescribed in
23Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
24(in respect to all provisions therein other than the State rate
25of tax), 2c, 3 (except as to the disposition of taxes and
26penalties collected), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,

SB2221- 130 -LRB100 13309 AWJ 27836 b
15k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, 13, and 14 of
2the Retailers' Occupation Tax Act and Section 3-7 of the
3Uniform Penalty and Interest Act, as fully as if those
4provisions were set forth herein.
5 Persons subject to any tax imposed under the Section may
6reimburse themselves for their seller's tax liability
7hereunder by separately stating the tax as an additional
8charge, which charge may be stated in combination, in a single
9amount, with State taxes that sellers are required to collect
10under the Use Tax Act, in accordance with such bracket
11schedules as the Department may prescribe.
12 Whenever the Department determines that a refund should be
13made under this Section to a claimant instead of issuing a
14credit memorandum, the Department shall notify the State
15Comptroller, who shall cause the warrant to be drawn for the
16amount specified, and to the person named, in the notification
17from the Department. The refund shall be paid by the State
18Treasurer out of the Metro East Mass Transit District tax fund
19established under paragraph (h) of this Section.
20 If a tax is imposed under this subsection (b), a tax shall
21also be imposed under subsections (c) and (d) of this Section.
22 For the purpose of determining whether a tax authorized
23under this Section is applicable, a retail sale, by a producer
24of coal or other mineral mined in Illinois, is a sale at retail
25at the place where the coal or other mineral mined in Illinois
26is extracted from the earth. This paragraph does not apply to

SB2221- 131 -LRB100 13309 AWJ 27836 b
1coal or other mineral when it is delivered or shipped by the
2seller to the purchaser at a point outside Illinois so that the
3sale is exempt under the Federal Constitution as a sale in
4interstate or foreign commerce.
5 Notwithstanding any other provision of law, for the purpose
6of determining whether a tax authorized under this Section is
7applicable, a retail sale of fuel used by an aircraft shall be
8deemed to be a retail sale at the place where the fuel is
9delivered to the aircraft. For the purposes of this paragraph,
10"fuel" has the meaning given to that term in Section 1.19 of
11the Motor Fuel Tax Law.
12 No tax shall be imposed or collected under this subsection
13on the sale of a motor vehicle in this State to a resident of
14another state if that motor vehicle will not be titled in this
15State.
16 Nothing in this Section shall be construed to authorize the
17Metro East Mass Transit District to impose a tax upon the
18privilege of engaging in any business which under the
19Constitution of the United States may not be made the subject
20of taxation by this State.
21 (c) If a tax has been imposed under subsection (b), a Metro
22East Mass Transit District Service Occupation Tax shall also be
23imposed upon all persons engaged, in the district, in the
24business of making sales of service, who, as an incident to
25making those sales of service, transfer tangible personal
26property within the District, either in the form of tangible

SB2221- 132 -LRB100 13309 AWJ 27836 b
1personal property or in the form of real estate as an incident
2to a sale of service. The tax rate shall be 1/4%, or as
3authorized under subsection (d-5) of this Section, of the
4selling price of tangible personal property so transferred
5within the district. The tax imposed under this paragraph and
6all civil penalties that may be assessed as an incident thereof
7shall be collected and enforced by the State Department of
8Revenue. The Department shall have full power to administer and
9enforce this paragraph; to collect all taxes and penalties due
10hereunder; to dispose of taxes and penalties so collected in
11the manner hereinafter provided; and to determine all rights to
12credit memoranda arising on account of the erroneous payment of
13tax or penalty hereunder. In the administration of, and
14compliance with this paragraph, the Department and persons who
15are subject to this paragraph shall have the same rights,
16remedies, privileges, immunities, powers and duties, and be
17subject to the same conditions, restrictions, limitations,
18penalties, exclusions, exemptions and definitions of terms and
19employ the same modes of procedure as are prescribed in
20Sections 1a-1, 2 (except that the reference to State in the
21definition of supplier maintaining a place of business in this
22State shall mean the Authority), 2a, 3 through 3-50 (in respect
23to all provisions therein other than the State rate of tax), 4
24(except that the reference to the State shall be to the
25Authority), 5, 7, 8 (except that the jurisdiction to which the
26tax shall be a debt to the extent indicated in that Section 8

SB2221- 133 -LRB100 13309 AWJ 27836 b
1shall be the District), 9 (except as to the disposition of
2taxes and penalties collected, and except that the returned
3merchandise credit for this tax may not be taken against any
4State tax), 10, 11, 12 (except the reference therein to Section
52b of the Retailers' Occupation Tax Act), 13 (except that any
6reference to the State shall mean the District), the first
7paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service
8Occupation Tax Act and Section 3-7 of the Uniform Penalty and
9Interest Act, as fully as if those provisions were set forth
10herein.
11 Persons subject to any tax imposed under the authority
12granted in this paragraph may reimburse themselves for their
13serviceman's tax liability hereunder by separately stating the
14tax as an additional charge, which charge may be stated in
15combination, in a single amount, with State tax that servicemen
16are authorized to collect under the Service Use Tax Act, in
17accordance with such bracket schedules as the Department may
18prescribe.
19 Whenever the Department determines that a refund should be
20made under this paragraph to a claimant instead of issuing a
21credit memorandum, the Department shall notify the State
22Comptroller, who shall cause the warrant to be drawn for the
23amount specified, and to the person named, in the notification
24from the Department. The refund shall be paid by the State
25Treasurer out of the Metro East Mass Transit District tax fund
26established under paragraph (h) of this Section.

SB2221- 134 -LRB100 13309 AWJ 27836 b
1 Nothing in this paragraph shall be construed to authorize
2the District to impose a tax upon the privilege of engaging in
3any business which under the Constitution of the United States
4may not be made the subject of taxation by the State.
5 (d) If a tax has been imposed under subsection (b), a Metro
6East Mass Transit District Use Tax shall also be imposed upon
7the privilege of using, in the district, any item of tangible
8personal property that is purchased outside the district at
9retail from a retailer, and that is titled or registered with
10an agency of this State's government, at a rate of 1/4%, or as
11authorized under subsection (d-5) of this Section, of the
12selling price of the tangible personal property within the
13District, as "selling price" is defined in the Use Tax Act. The
14tax shall be collected from persons whose Illinois address for
15titling or registration purposes is given as being in the
16District. The tax shall be collected by the Department of
17Revenue for the Metro East Mass Transit District. The tax must
18be paid to the State, or an exemption determination must be
19obtained from the Department of Revenue, before the title or
20certificate of registration for the property may be issued. The
21tax or proof of exemption may be transmitted to the Department
22by way of the State agency with which, or the State officer
23with whom, the tangible personal property must be titled or
24registered if the Department and the State agency or State
25officer determine that this procedure will expedite the
26processing of applications for title or registration.

SB2221- 135 -LRB100 13309 AWJ 27836 b
1 The Department shall have full power to administer and
2enforce this paragraph; to collect all taxes, penalties and
3interest due hereunder; to dispose of taxes, penalties and
4interest so collected in the manner hereinafter provided; and
5to determine all rights to credit memoranda or refunds arising
6on account of the erroneous payment of tax, penalty or interest
7hereunder. In the administration of, and compliance with, this
8paragraph, the Department and persons who are subject to this
9paragraph shall have the same rights, remedies, privileges,
10immunities, powers and duties, and be subject to the same
11conditions, restrictions, limitations, penalties, exclusions,
12exemptions and definitions of terms and employ the same modes
13of procedure, as are prescribed in Sections 2 (except the
14definition of "retailer maintaining a place of business in this
15State"), 3 through 3-80 (except provisions pertaining to the
16State rate of tax, and except provisions concerning collection
17or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
1819 (except the portions pertaining to claims by retailers and
19except the last paragraph concerning refunds), 20, 21 and 22 of
20the Use Tax Act and Section 3-7 of the Uniform Penalty and
21Interest Act, that are not inconsistent with this paragraph, as
22fully as if those provisions were set forth herein.
23 Whenever the Department determines that a refund should be
24made under this paragraph to a claimant instead of issuing a
25credit memorandum, the Department shall notify the State
26Comptroller, who shall cause the order to be drawn for the

SB2221- 136 -LRB100 13309 AWJ 27836 b
1amount specified, and to the person named, in the notification
2from the Department. The refund shall be paid by the State
3Treasurer out of the Metro East Mass Transit District tax fund
4established under paragraph (h) of this Section.
5 (d-5) (A) The county board of any county participating in
6the Metro East Mass Transit District may authorize, by
7ordinance, a referendum on the question of whether the tax
8rates for the Metro East Mass Transit District Retailers'
9Occupation Tax, the Metro East Mass Transit District Service
10Occupation Tax, and the Metro East Mass Transit District Use
11Tax for the District should be increased from 0.25% to 0.75%.
12Upon adopting the ordinance, the county board shall certify the
13proposition to the proper election officials who shall submit
14the proposition to the voters of the District at the next
15election, in accordance with the general election law.
16 The proposition shall be in substantially the following
17form:
18 Shall the tax rates for the Metro East Mass Transit
19 District Retailers' Occupation Tax, the Metro East Mass
20 Transit District Service Occupation Tax, and the Metro East
21 Mass Transit District Use Tax be increased from 0.25% to
22 0.75%?
23 (B) Two thousand five hundred electors of any Metro East
24Mass Transit District may petition the Chief Judge of the
25Circuit Court, or any judge of that Circuit designated by the
26Chief Judge, in which that District is located to cause to be

SB2221- 137 -LRB100 13309 AWJ 27836 b
1submitted to a vote of the electors the question whether the
2tax rates for the Metro East Mass Transit District Retailers'
3Occupation Tax, the Metro East Mass Transit District Service
4Occupation Tax, and the Metro East Mass Transit District Use
5Tax for the District should be increased from 0.25% to 0.75%.
6 Upon submission of such petition the court shall set a date
7not less than 10 nor more than 30 days thereafter for a hearing
8on the sufficiency thereof. Notice of the filing of such
9petition and of such date shall be given in writing to the
10District and the County Clerk at least 7 days before the date
11of such hearing.
12 If such petition is found sufficient, the court shall enter
13an order to submit that proposition at the next election, in
14accordance with general election law.
15 The form of the petition shall be in substantially the
16following form: To the Circuit Court of the County of (name of
17county):
18 We, the undersigned electors of the (name of transit
19 district), respectfully petition your honor to submit to a
20 vote of the electors of (name of transit district) the
21 following proposition:
22 Shall the tax rates for the Metro East Mass Transit
23 District Retailers' Occupation Tax, the Metro East Mass
24 Transit District Service Occupation Tax, and the Metro East
25 Mass Transit District Use Tax be increased from 0.25% to
26 0.75%?

SB2221- 138 -LRB100 13309 AWJ 27836 b
1 Name Address, with Street and Number.
2..............................................................
3..............................................................
4 (C) The votes shall be recorded as "YES" or "NO". If a
5majority of all votes cast on the proposition are for the
6increase in the tax rates, the Metro East Mass Transit District
7shall begin imposing the increased rates in the District, and
8the Department of Revenue shall begin collecting the increased
9amounts, as provided under this Section. An ordinance imposing
10or discontinuing a tax hereunder or effecting a change in the
11rate thereof shall be adopted and a certified copy thereof
12filed with the Department on or before the first day of
13October, whereupon the Department shall proceed to administer
14and enforce this Section as of the first day of January next
15following the adoption and filing, or on or before the first
16day of April, whereupon the Department shall proceed to
17administer and enforce this Section as of the first day of July
18next following the adoption and filing.
19 (D) If the voters have approved a referendum under this
20subsection, before November 1, 1994, to increase the tax rate
21under this subsection, the Metro East Mass Transit District
22Board of Trustees may adopt by a majority vote an ordinance at
23any time before January 1, 1995 that excludes from the rate
24increase tangible personal property that is titled or
25registered with an agency of this State's government. The
26ordinance excluding titled or registered tangible personal

SB2221- 139 -LRB100 13309 AWJ 27836 b
1property from the rate increase must be filed with the
2Department at least 15 days before its effective date. At any
3time after adopting an ordinance excluding from the rate
4increase tangible personal property that is titled or
5registered with an agency of this State's government, the Metro
6East Mass Transit District Board of Trustees may adopt an
7ordinance applying the rate increase to that tangible personal
8property. The ordinance shall be adopted, and a certified copy
9of that ordinance shall be filed with the Department, on or
10before October 1, whereupon the Department shall proceed to
11administer and enforce the rate increase against tangible
12personal property titled or registered with an agency of this
13State's government as of the following January 1. After
14December 31, 1995, any reimposed rate increase in effect under
15this subsection shall no longer apply to tangible personal
16property titled or registered with an agency of this State's
17government. Beginning January 1, 1996, the Board of Trustees of
18any Metro East Mass Transit District may never reimpose a
19previously excluded tax rate increase on tangible personal
20property titled or registered with an agency of this State's
21government. After July 1, 2004, if the voters have approved a
22referendum under this subsection to increase the tax rate under
23this subsection, the Metro East Mass Transit District Board of
24Trustees may adopt by a majority vote an ordinance that
25excludes from the rate increase tangible personal property that
26is titled or registered with an agency of this State's

SB2221- 140 -LRB100 13309 AWJ 27836 b
1government. The ordinance excluding titled or registered
2tangible personal property from the rate increase shall be
3adopted, and a certified copy of that ordinance shall be filed
4with the Department on or before October 1, whereupon the
5Department shall administer and enforce this exclusion from the
6rate increase as of the following January 1, or on or before
7April 1, whereupon the Department shall administer and enforce
8this exclusion from the rate increase as of the following July
91. The Board of Trustees of any Metro East Mass Transit
10District may never reimpose a previously excluded tax rate
11increase on tangible personal property titled or registered
12with an agency of this State's government.
13 (d-6) If the Board of Trustees of any Metro East Mass
14Transit District has imposed a rate increase under subsection
15(d-5) and filed an ordinance with the Department of Revenue
16excluding titled property from the higher rate, then that Board
17may, by ordinance adopted with the concurrence of two-thirds of
18the then trustees, impose throughout the District a fee. The
19fee on the excluded property shall not exceed $20 per retail
20transaction or an amount equal to the amount of tax excluded,
21whichever is less, on tangible personal property that is titled
22or registered with an agency of this State's government.
23Beginning July 1, 2004, the fee shall apply only to titled
24property that is subject to either the Metro East Mass Transit
25District Retailers' Occupation Tax or the Metro East Mass
26Transit District Service Occupation Tax. No fee shall be

SB2221- 141 -LRB100 13309 AWJ 27836 b
1imposed or collected under this subsection on the sale of a
2motor vehicle in this State to a resident of another state if
3that motor vehicle will not be titled in this State.
4 (d-7) Until June 30, 2004, if a fee has been imposed under
5subsection (d-6), a fee shall also be imposed upon the
6privilege of using, in the district, any item of tangible
7personal property that is titled or registered with any agency
8of this State's government, in an amount equal to the amount of
9the fee imposed under subsection (d-6).
10 (d-7.1) Beginning July 1, 2004, any fee imposed by the
11Board of Trustees of any Metro East Mass Transit District under
12subsection (d-6) and all civil penalties that may be assessed
13as an incident of the fees shall be collected and enforced by
14the State Department of Revenue. Reference to "taxes" in this
15Section shall be construed to apply to the administration,
16payment, and remittance of all fees under this Section. For
17purposes of any fee imposed under subsection (d-6), 4% of the
18fee, penalty, and interest received by the Department in the
19first 12 months that the fee is collected and enforced by the
20Department and 2% of the fee, penalty, and interest following
21the first 12 months shall be deposited into the Tax Compliance
22and Administration Fund and shall be used by the Department,
23subject to appropriation, to cover the costs of the Department.
24No retailers' discount shall apply to any fee imposed under
25subsection (d-6).
26 (d-8) No item of titled property shall be subject to both

SB2221- 142 -LRB100 13309 AWJ 27836 b
1the higher rate approved by referendum, as authorized under
2subsection (d-5), and any fee imposed under subsection (d-6) or
3(d-7).
4 (d-9) (Blank).
5 (d-10) (Blank).
6 (e) A certificate of registration issued by the State
7Department of Revenue to a retailer under the Retailers'
8Occupation Tax Act or under the Service Occupation Tax Act
9shall permit the registrant to engage in a business that is
10taxed under the tax imposed under paragraphs (b), (c) or (d) of
11this Section and no additional registration shall be required
12under the tax. A certificate issued under the Use Tax Act or
13the Service Use Tax Act shall be applicable with regard to any
14tax imposed under paragraph (c) of this Section.
15 (f) (Blank).
16 (g) Any ordinance imposing or discontinuing any tax under
17this Section shall be adopted and a certified copy thereof
18filed with the Department on or before June 1, whereupon the
19Department of Revenue shall proceed to administer and enforce
20this Section on behalf of the Metro East Mass Transit District
21as of September 1 next following such adoption and filing.
22Beginning January 1, 1992, an ordinance or resolution imposing
23or discontinuing the tax hereunder shall be adopted and a
24certified copy thereof filed with the Department on or before
25the first day of July, whereupon the Department shall proceed
26to administer and enforce this Section as of the first day of

SB2221- 143 -LRB100 13309 AWJ 27836 b
1October next following such adoption and filing. Beginning
2January 1, 1993, except as provided in subsection (d-5) of this
3Section, an ordinance or resolution imposing or discontinuing
4the tax hereunder shall be adopted and a certified copy thereof
5filed with the Department on or before the first day of
6October, whereupon the Department shall proceed to administer
7and enforce this Section as of the first day of January next
8following such adoption and filing, or, beginning January 1,
92004, on or before the first day of April, whereupon the
10Department shall proceed to administer and enforce this Section
11as of the first day of July next following the adoption and
12filing.
13 (h) Except as provided in subsection (d-7.1), the State
14Department of Revenue shall, upon collecting any taxes as
15provided in this Section, pay the taxes over to the State
16Treasurer as trustee for the District. The taxes shall be held
17in a trust fund outside the State Treasury.
18 As soon as possible after the first day of each month,
19beginning January 1, 2011, upon certification of the Department
20of Revenue, the Comptroller shall order transferred, and the
21Treasurer shall transfer, to the STAR Bonds Revenue Fund the
22local sales tax increment, as defined in the Innovation
23Development and Economy Act, collected under this Section
24during the second preceding calendar month for sales within a
25STAR bond district. The Department shall make this
26certification only if the local mass transit district imposes a

SB2221- 144 -LRB100 13309 AWJ 27836 b
1tax on real property as provided in the definition of "local
2sales taxes" under the Innovation Development and Economy Act.
3 After the monthly transfer to the STAR Bonds Revenue Fund,
4on or before the 25th day of each calendar month, the State
5Department of Revenue shall prepare and certify to the
6Comptroller of the State of Illinois the amount to be paid to
7the District, which shall be the amount (not including credit
8memoranda) collected under this Section during the second
9preceding calendar month by the Department plus an amount the
10Department determines is necessary to offset any amounts that
11were erroneously paid to a different taxing body, and not
12including any amount equal to the amount of refunds made during
13the second preceding calendar month by the Department on behalf
14of the District, and not including any amount that the
15Department determines is necessary to offset any amounts that
16were payable to a different taxing body but were erroneously
17paid to the District, and less any amounts that are transferred
18to the STAR Bonds Revenue Fund. Within 10 days after receipt by
19the Comptroller of the certification of the amount to be paid
20to the District, the Comptroller shall cause an order to be
21drawn for payment for the amount in accordance with the
22direction in the certification.
23(Source: P.A. 98-298, eff. 8-9-13; 99-217, eff. 7-31-15.)
24 Section 45. The Regional Transportation Authority Act is
25amended by changing Section 4.03 as follows:

SB2221- 145 -LRB100 13309 AWJ 27836 b
1 (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
2 Sec. 4.03. Taxes.
3 (a) In order to carry out any of the powers or purposes of
4the Authority, the Board may by ordinance adopted with the
5concurrence of 12 of the then Directors, impose throughout the
6metropolitan region any or all of the taxes provided in this
7Section. Except as otherwise provided in this Act, taxes
8imposed under this Section and civil penalties imposed incident
9thereto shall be collected and enforced by the State Department
10of Revenue. The Department shall have the power to administer
11and enforce the taxes and to determine all rights for refunds
12for erroneous payments of the taxes. Nothing in Public Act
1395-708 is intended to invalidate any taxes currently imposed by
14the Authority. The increased vote requirements to impose a tax
15shall only apply to actions taken after January 1, 2008 (the
16effective date of Public Act 95-708).
17 (b) The Board may impose a public transportation tax upon
18all persons engaged in the metropolitan region in the business
19of selling at retail motor fuel for operation of motor vehicles
20upon public highways. The tax shall be at a rate not to exceed
215% of the gross receipts from the sales of motor fuel in the
22course of the business. As used in this Act, the term "motor
23fuel" shall have the same meaning as in the Motor Fuel Tax Law.
24The Board may provide for details of the tax. The provisions of
25any tax shall conform, as closely as may be practicable, to the

SB2221- 146 -LRB100 13309 AWJ 27836 b
1provisions of the Municipal Retailers Occupation Tax Act,
2including without limitation, conformity to penalties with
3respect to the tax imposed and as to the powers of the State
4Department of Revenue to promulgate and enforce rules and
5regulations relating to the administration and enforcement of
6the provisions of the tax imposed, except that reference in the
7Act to any municipality shall refer to the Authority and the
8tax shall be imposed only with regard to receipts from sales of
9motor fuel in the metropolitan region, at rates as limited by
10this Section.
11 (c) In connection with the tax imposed under paragraph (b)
12of this Section the Board may impose a tax upon the privilege
13of using in the metropolitan region motor fuel for the
14operation of a motor vehicle upon public highways, the tax to
15be at a rate not in excess of the rate of tax imposed under
16paragraph (b) of this Section. The Board may provide for
17details of the tax.
18 (d) The Board may impose a motor vehicle parking tax upon
19the privilege of parking motor vehicles at off-street parking
20facilities in the metropolitan region at which a fee is
21charged, and may provide for reasonable classifications in and
22exemptions to the tax, for administration and enforcement
23thereof and for civil penalties and refunds thereunder and may
24provide criminal penalties thereunder, the maximum penalties
25not to exceed the maximum criminal penalties provided in the
26Retailers' Occupation Tax Act. The Authority may collect and

SB2221- 147 -LRB100 13309 AWJ 27836 b
1enforce the tax itself or by contract with any unit of local
2government. The State Department of Revenue shall have no
3responsibility for the collection and enforcement unless the
4Department agrees with the Authority to undertake the
5collection and enforcement. As used in this paragraph, the term
6"parking facility" means a parking area or structure having
7parking spaces for more than 2 vehicles at which motor vehicles
8are permitted to park in return for an hourly, daily, or other
9periodic fee, whether publicly or privately owned, but does not
10include parking spaces on a public street, the use of which is
11regulated by parking meters.
12 (e) The Board may impose a Regional Transportation
13Authority Retailers' Occupation Tax upon all persons engaged in
14the business of selling tangible personal property at retail in
15the metropolitan region. In Cook County the tax rate shall be
161.25% of the gross receipts from sales of food for human
17consumption that is to be consumed off the premises where it is
18sold (other than alcoholic beverages, soft drinks and food that
19has been prepared for immediate consumption) and prescription
20and nonprescription medicines, drugs, medical appliances and
21insulin, urine testing materials, syringes and needles used by
22diabetics, and 1% of the gross receipts from other taxable
23sales made in the course of that business. In DuPage, Kane,
24Lake, McHenry, and Will Counties, the tax rate shall be 0.75%
25of the gross receipts from all taxable sales made in the course
26of that business. The tax imposed under this Section and all

SB2221- 148 -LRB100 13309 AWJ 27836 b
1civil penalties that may be assessed as an incident thereof
2shall be collected and enforced by the State Department of
3Revenue. The Department shall have full power to administer and
4enforce this Section; to collect all taxes and penalties so
5collected in the manner hereinafter provided; and to determine
6all rights to credit memoranda arising on account of the
7erroneous payment of tax or penalty hereunder. In the
8administration of, and compliance with this Section, the
9Department and persons who are subject to this Section shall
10have the same rights, remedies, privileges, immunities, powers
11and duties, and be subject to the same conditions,
12restrictions, limitations, penalties, exclusions, exemptions
13and definitions of terms, and employ the same modes of
14procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
151e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
16therein other than the State rate of tax), 2c, 3 (except as to
17the disposition of taxes and penalties collected), 4, 5, 5a,
185b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
197, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act
20and Section 3-7 of the Uniform Penalty and Interest Act, as
21fully as if those provisions were set forth herein.
22 Persons subject to any tax imposed under the authority
23granted in this Section may reimburse themselves for their
24seller's tax liability hereunder by separately stating the tax
25as an additional charge, which charge may be stated in
26combination in a single amount with State taxes that sellers

SB2221- 149 -LRB100 13309 AWJ 27836 b
1are required to collect under the Use Tax Act, under any
2bracket schedules the Department may prescribe.
3 Whenever the Department determines that a refund should be
4made under this Section to a claimant instead of issuing a
5credit memorandum, the Department shall notify the State
6Comptroller, who shall cause the warrant to be drawn for the
7amount specified, and to the person named, in the notification
8from the Department. The refund shall be paid by the State
9Treasurer out of the Regional Transportation Authority tax fund
10established under paragraph (n) of this Section.
11 If a tax is imposed under this subsection (e), a tax shall
12also be imposed under subsections (f) and (g) of this Section.
13 For the purpose of determining whether a tax authorized
14under this Section is applicable, a retail sale by a producer
15of coal or other mineral mined in Illinois, is a sale at retail
16at the place where the coal or other mineral mined in Illinois
17is extracted from the earth. This paragraph does not apply to
18coal or other mineral when it is delivered or shipped by the
19seller to the purchaser at a point outside Illinois so that the
20sale is exempt under the Federal Constitution as a sale in
21interstate or foreign commerce.
22 Notwithstanding any other provision of law, for the purpose
23of determining whether a tax authorized under this Section is
24applicable, a retail sale of fuel used by an aircraft shall be
25deemed to be a retail sale at the place where the fuel is
26delivered to the aircraft. For the purposes of this paragraph,

SB2221- 150 -LRB100 13309 AWJ 27836 b
1"fuel" has the meaning given to that term in Section 1.19 of
2the Motor Fuel Tax Law.
3 No tax shall be imposed or collected under this subsection
4on the sale of a motor vehicle in this State to a resident of
5another state if that motor vehicle will not be titled in this
6State.
7 Nothing in this Section shall be construed to authorize the
8Regional Transportation Authority to impose a tax upon the
9privilege of engaging in any business that under the
10Constitution of the United States may not be made the subject
11of taxation by this State.
12 (f) If a tax has been imposed under paragraph (e), a
13Regional Transportation Authority Service Occupation Tax shall
14also be imposed upon all persons engaged, in the metropolitan
15region in the business of making sales of service, who as an
16incident to making the sales of service, transfer tangible
17personal property within the metropolitan region, either in the
18form of tangible personal property or in the form of real
19estate as an incident to a sale of service. In Cook County, the
20tax rate shall be: (1) 1.25% of the serviceman's cost price of
21food prepared for immediate consumption and transferred
22incident to a sale of service subject to the service occupation
23tax by an entity licensed under the Hospital Licensing Act, the
24Nursing Home Care Act, the Specialized Mental Health
25Rehabilitation Act of 2013, the ID/DD Community Care Act, or
26the MC/DD Act that is located in the metropolitan region; (2)

SB2221- 151 -LRB100 13309 AWJ 27836 b
11.25% of the selling price of food for human consumption that
2is to be consumed off the premises where it is sold (other than
3alcoholic beverages, soft drinks and food that has been
4prepared for immediate consumption) and prescription and
5nonprescription medicines, drugs, medical appliances and
6insulin, urine testing materials, syringes and needles used by
7diabetics; and (3) 1% of the selling price from other taxable
8sales of tangible personal property transferred. In DuPage,
9Kane, Lake, McHenry and Will Counties the rate shall be 0.75%
10of the selling price of all tangible personal property
11transferred.
12 The tax imposed under this paragraph and all civil
13penalties that may be assessed as an incident thereof shall be
14collected and enforced by the State Department of Revenue. The
15Department shall have full power to administer and enforce this
16paragraph; to collect all taxes and penalties due hereunder; to
17dispose of taxes and penalties collected in the manner
18hereinafter provided; and to determine all rights to credit
19memoranda arising on account of the erroneous payment of tax or
20penalty hereunder. In the administration of and compliance with
21this paragraph, the Department and persons who are subject to
22this paragraph shall have the same rights, remedies,
23privileges, immunities, powers and duties, and be subject to
24the same conditions, restrictions, limitations, penalties,
25exclusions, exemptions and definitions of terms, and employ the
26same modes of procedure, as are prescribed in Sections 1a-1, 2,

SB2221- 152 -LRB100 13309 AWJ 27836 b
12a, 3 through 3-50 (in respect to all provisions therein other
2than the State rate of tax), 4 (except that the reference to
3the State shall be to the Authority), 5, 7, 8 (except that the
4jurisdiction to which the tax shall be a debt to the extent
5indicated in that Section 8 shall be the Authority), 9 (except
6as to the disposition of taxes and penalties collected, and
7except that the returned merchandise credit for this tax may
8not be taken against any State tax), 10, 11, 12 (except the
9reference therein to Section 2b of the Retailers' Occupation
10Tax Act), 13 (except that any reference to the State shall mean
11the Authority), the first paragraph of Section 15, 16, 17, 18,
1219 and 20 of the Service Occupation Tax Act and Section 3-7 of
13the Uniform Penalty and Interest Act, as fully as if those
14provisions were set forth herein.
15 Persons subject to any tax imposed under the authority
16granted in this paragraph may reimburse themselves for their
17serviceman's tax liability hereunder by separately stating the
18tax as an additional charge, that charge may be stated in
19combination in a single amount with State tax that servicemen
20are authorized to collect under the Service Use Tax Act, under
21any bracket schedules the Department may prescribe.
22 Whenever the Department determines that a refund should be
23made under this paragraph to a claimant instead of issuing a
24credit memorandum, the Department shall notify the State
25Comptroller, who shall cause the warrant to be drawn for the
26amount specified, and to the person named in the notification

SB2221- 153 -LRB100 13309 AWJ 27836 b
1from the Department. The refund shall be paid by the State
2Treasurer out of the Regional Transportation Authority tax fund
3established under paragraph (n) of this Section.
4 Nothing in this paragraph shall be construed to authorize
5the Authority to impose a tax upon the privilege of engaging in
6any business that under the Constitution of the United States
7may not be made the subject of taxation by the State.
8 (g) If a tax has been imposed under paragraph (e), a tax
9shall also be imposed upon the privilege of using in the
10metropolitan region, any item of tangible personal property
11that is purchased outside the metropolitan region at retail
12from a retailer, and that is titled or registered with an
13agency of this State's government. In Cook County the tax rate
14shall be 1% of the selling price of the tangible personal
15property, as "selling price" is defined in the Use Tax Act. In
16DuPage, Kane, Lake, McHenry and Will counties the tax rate
17shall be 0.75% of the selling price of the tangible personal
18property, as "selling price" is defined in the Use Tax Act. The
19tax shall be collected from persons whose Illinois address for
20titling or registration purposes is given as being in the
21metropolitan region. The tax shall be collected by the
22Department of Revenue for the Regional Transportation
23Authority. The tax must be paid to the State, or an exemption
24determination must be obtained from the Department of Revenue,
25before the title or certificate of registration for the
26property may be issued. The tax or proof of exemption may be

SB2221- 154 -LRB100 13309 AWJ 27836 b
1transmitted to the Department by way of the State agency with
2which, or the State officer with whom, the tangible personal
3property must be titled or registered if the Department and the
4State agency or State officer determine that this procedure
5will expedite the processing of applications for title or
6registration.
7 The Department shall have full power to administer and
8enforce this paragraph; to collect all taxes, penalties and
9interest due hereunder; to dispose of taxes, penalties and
10interest collected in the manner hereinafter provided; and to
11determine all rights to credit memoranda or refunds arising on
12account of the erroneous payment of tax, penalty or interest
13hereunder. In the administration of and compliance with this
14paragraph, the Department and persons who are subject to this
15paragraph shall have the same rights, remedies, privileges,
16immunities, powers and duties, and be subject to the same
17conditions, restrictions, limitations, penalties, exclusions,
18exemptions and definitions of terms and employ the same modes
19of procedure, as are prescribed in Sections 2 (except the
20definition of "retailer maintaining a place of business in this
21State"), 3 through 3-80 (except provisions pertaining to the
22State rate of tax, and except provisions concerning collection
23or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
2419 (except the portions pertaining to claims by retailers and
25except the last paragraph concerning refunds), 20, 21 and 22 of
26the Use Tax Act, and are not inconsistent with this paragraph,

SB2221- 155 -LRB100 13309 AWJ 27836 b
1as fully as if those provisions were set forth herein.
2 Whenever the Department determines that a refund should be
3made under this paragraph to a claimant instead of issuing a
4credit memorandum, the Department shall notify the State
5Comptroller, who shall cause the order to be drawn for the
6amount specified, and to the person named in the notification
7from the Department. The refund shall be paid by the State
8Treasurer out of the Regional Transportation Authority tax fund
9established under paragraph (n) of this Section.
10 (h) The Authority may impose a replacement vehicle tax of
11$50 on any passenger car as defined in Section 1-157 of the
12Illinois Vehicle Code purchased within the metropolitan region
13by or on behalf of an insurance company to replace a passenger
14car of an insured person in settlement of a total loss claim.
15The tax imposed may not become effective before the first day
16of the month following the passage of the ordinance imposing
17the tax and receipt of a certified copy of the ordinance by the
18Department of Revenue. The Department of Revenue shall collect
19the tax for the Authority in accordance with Sections 3-2002
20and 3-2003 of the Illinois Vehicle Code.
21 The Department shall immediately pay over to the State
22Treasurer, ex officio, as trustee, all taxes collected
23hereunder.
24 As soon as possible after the first day of each month,
25beginning January 1, 2011, upon certification of the Department
26of Revenue, the Comptroller shall order transferred, and the

SB2221- 156 -LRB100 13309 AWJ 27836 b
1Treasurer shall transfer, to the STAR Bonds Revenue Fund the
2local sales tax increment, as defined in the Innovation
3Development and Economy Act, collected under this Section
4during the second preceding calendar month for sales within a
5STAR bond district.
6 After the monthly transfer to the STAR Bonds Revenue Fund,
7on or before the 25th day of each calendar month, the
8Department shall prepare and certify to the Comptroller the
9disbursement of stated sums of money to the Authority. The
10amount to be paid to the Authority shall be the amount
11collected hereunder during the second preceding calendar month
12by the Department, less any amount determined by the Department
13to be necessary for the payment of refunds, and less any
14amounts that are transferred to the STAR Bonds Revenue Fund.
15Within 10 days after receipt by the Comptroller of the
16disbursement certification to the Authority provided for in
17this Section to be given to the Comptroller by the Department,
18the Comptroller shall cause the orders to be drawn for that
19amount in accordance with the directions contained in the
20certification.
21 (i) The Board may not impose any other taxes except as it
22may from time to time be authorized by law to impose.
23 (j) A certificate of registration issued by the State
24Department of Revenue to a retailer under the Retailers'
25Occupation Tax Act or under the Service Occupation Tax Act
26shall permit the registrant to engage in a business that is

SB2221- 157 -LRB100 13309 AWJ 27836 b
1taxed under the tax imposed under paragraphs (b), (e), (f) or
2(g) of this Section and no additional registration shall be
3required under the tax. A certificate issued under the Use Tax
4Act or the Service Use Tax Act shall be applicable with regard
5to any tax imposed under paragraph (c) of this Section.
6 (k) The provisions of any tax imposed under paragraph (c)
7of this Section shall conform as closely as may be practicable
8to the provisions of the Use Tax Act, including without
9limitation conformity as to penalties with respect to the tax
10imposed and as to the powers of the State Department of Revenue
11to promulgate and enforce rules and regulations relating to the
12administration and enforcement of the provisions of the tax
13imposed. The taxes shall be imposed only on use within the
14metropolitan region and at rates as provided in the paragraph.
15 (l) The Board in imposing any tax as provided in paragraphs
16(b) and (c) of this Section, shall, after seeking the advice of
17the State Department of Revenue, provide means for retailers,
18users or purchasers of motor fuel for purposes other than those
19with regard to which the taxes may be imposed as provided in
20those paragraphs to receive refunds of taxes improperly paid,
21which provisions may be at variance with the refund provisions
22as applicable under the Municipal Retailers Occupation Tax Act.
23The State Department of Revenue may provide for certificates of
24registration for users or purchasers of motor fuel for purposes
25other than those with regard to which taxes may be imposed as
26provided in paragraphs (b) and (c) of this Section to

SB2221- 158 -LRB100 13309 AWJ 27836 b
1facilitate the reporting and nontaxability of the exempt sales
2or uses.
3 (m) Any ordinance imposing or discontinuing any tax under
4this Section shall be adopted and a certified copy thereof
5filed with the Department on or before June 1, whereupon the
6Department of Revenue shall proceed to administer and enforce
7this Section on behalf of the Regional Transportation Authority
8as of September 1 next following such adoption and filing.
9Beginning January 1, 1992, an ordinance or resolution imposing
10or discontinuing the tax hereunder shall be adopted and a
11certified copy thereof filed with the Department on or before
12the first day of July, whereupon the Department shall proceed
13to administer and enforce this Section as of the first day of
14October next following such adoption and filing. Beginning
15January 1, 1993, an ordinance or resolution imposing,
16increasing, decreasing, or discontinuing the tax hereunder
17shall be adopted and a certified copy thereof filed with the
18Department, whereupon the Department shall proceed to
19administer and enforce this Section as of the first day of the
20first month to occur not less than 60 days following such
21adoption and filing. Any ordinance or resolution of the
22Authority imposing a tax under this Section and in effect on
23August 1, 2007 shall remain in full force and effect and shall
24be administered by the Department of Revenue under the terms
25and conditions and rates of tax established by such ordinance
26or resolution until the Department begins administering and

SB2221- 159 -LRB100 13309 AWJ 27836 b
1enforcing an increased tax under this Section as authorized by
2Public Act 95-708. The tax rates authorized by Public Act
395-708 are effective only if imposed by ordinance of the
4Authority.
5 (n) The State Department of Revenue shall, upon collecting
6any taxes as provided in this Section, pay the taxes over to
7the State Treasurer as trustee for the Authority. The taxes
8shall be held in a trust fund outside the State Treasury. On or
9before the 25th day of each calendar month, the State
10Department of Revenue shall prepare and certify to the
11Comptroller of the State of Illinois and to the Authority (i)
12the amount of taxes collected in each County other than Cook
13County in the metropolitan region, (ii) the amount of taxes
14collected within the City of Chicago, and (iii) the amount
15collected in that portion of Cook County outside of Chicago,
16each amount less the amount necessary for the payment of
17refunds to taxpayers located in those areas described in items
18(i), (ii), and (iii). Within 10 days after receipt by the
19Comptroller of the certification of the amounts, the
20Comptroller shall cause an order to be drawn for the payment of
21two-thirds of the amounts certified in item (i) of this
22subsection to the Authority and one-third of the amounts
23certified in item (i) of this subsection to the respective
24counties other than Cook County and the amount certified in
25items (ii) and (iii) of this subsection to the Authority.
26 In addition to the disbursement required by the preceding

SB2221- 160 -LRB100 13309 AWJ 27836 b
1paragraph, an allocation shall be made in July 1991 and each
2year thereafter to the Regional Transportation Authority. The
3allocation shall be made in an amount equal to the average
4monthly distribution during the preceding calendar year
5(excluding the 2 months of lowest receipts) and the allocation
6shall include the amount of average monthly distribution from
7the Regional Transportation Authority Occupation and Use Tax
8Replacement Fund. The distribution made in July 1992 and each
9year thereafter under this paragraph and the preceding
10paragraph shall be reduced by the amount allocated and
11disbursed under this paragraph in the preceding calendar year.
12The Department of Revenue shall prepare and certify to the
13Comptroller for disbursement the allocations made in
14accordance with this paragraph.
15 (o) Failure to adopt a budget ordinance or otherwise to
16comply with Section 4.01 of this Act or to adopt a Five-year
17Capital Program or otherwise to comply with paragraph (b) of
18Section 2.01 of this Act shall not affect the validity of any
19tax imposed by the Authority otherwise in conformity with law.
20 (p) At no time shall a public transportation tax or motor
21vehicle parking tax authorized under paragraphs (b), (c) and
22(d) of this Section be in effect at the same time as any
23retailers' occupation, use or service occupation tax
24authorized under paragraphs (e), (f) and (g) of this Section is
25in effect.
26 Any taxes imposed under the authority provided in

SB2221- 161 -LRB100 13309 AWJ 27836 b
1paragraphs (b), (c) and (d) shall remain in effect only until
2the time as any tax authorized by paragraphs (e), (f) or (g) of
3this Section are imposed and becomes effective. Once any tax
4authorized by paragraphs (e), (f) or (g) is imposed the Board
5may not reimpose taxes as authorized in paragraphs (b), (c) and
6(d) of the Section unless any tax authorized by paragraphs (e),
7(f) or (g) of this Section becomes ineffective by means other
8than an ordinance of the Board.
9 (q) Any existing rights, remedies and obligations
10(including enforcement by the Regional Transportation
11Authority) arising under any tax imposed under paragraphs (b),
12(c) or (d) of this Section shall not be affected by the
13imposition of a tax under paragraphs (e), (f) or (g) of this
14Section.
15(Source: P.A. 98-104, eff. 7-22-13; 99-180, eff. 7-29-15;
1699-217, eff. 7-31-15; 99-642, eff. 7-28-16.)
17 Section 50. The Water Commission Act of 1985 is amended by
18changing Section 4 as follows:
19 (70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
20 Sec. 4. Taxes.
21 (a) The board of commissioners of any county water
22commission may, by ordinance, impose throughout the territory
23of the commission any or all of the taxes provided in this
24Section for its corporate purposes. However, no county water

SB2221- 162 -LRB100 13309 AWJ 27836 b
1commission may impose any such tax unless the commission
2certifies the proposition of imposing the tax to the proper
3election officials, who shall submit the proposition to the
4voters residing in the territory at an election in accordance
5with the general election law, and the proposition has been
6approved by a majority of those voting on the proposition.
7 The proposition shall be in the form provided in Section 5
8or shall be substantially in the following form:
9-------------------------------------------------------------
10 Shall the (insert corporate
11name of county water commission) YES
12impose (state type of tax or ------------------------
13taxes to be imposed) at the NO
14rate of 1/4%?
15-------------------------------------------------------------
16 Taxes imposed under this Section and civil penalties
17imposed incident thereto shall be collected and enforced by the
18State Department of Revenue. The Department shall have the
19power to administer and enforce the taxes and to determine all
20rights for refunds for erroneous payments of the taxes.
21 (b) The board of commissioners may impose a County Water
22Commission Retailers' Occupation Tax upon all persons engaged
23in the business of selling tangible personal property at retail
24in the territory of the commission at a rate of 1/4% of the
25gross receipts from the sales made in the course of such
26business within the territory. The tax imposed under this

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1paragraph and all civil penalties that may be assessed as an
2incident thereof shall be collected and enforced by the State
3Department of Revenue. The Department shall have full power to
4administer and enforce this paragraph; to collect all taxes and
5penalties due hereunder; to dispose of taxes and penalties so
6collected in the manner hereinafter provided; and to determine
7all rights to credit memoranda arising on account of the
8erroneous payment of tax or penalty hereunder. In the
9administration of, and compliance with, this paragraph, the
10Department and persons who are subject to this paragraph shall
11have the same rights, remedies, privileges, immunities, powers
12and duties, and be subject to the same conditions,
13restrictions, limitations, penalties, exclusions, exemptions
14and definitions of terms, and employ the same modes of
15procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
161e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
17therein other than the State rate of tax except that food for
18human consumption that is to be consumed off the premises where
19it is sold (other than alcoholic beverages, soft drinks, and
20food that has been prepared for immediate consumption) and
21prescription and nonprescription medicine, drugs, medical
22appliances and insulin, urine testing materials, syringes, and
23needles used by diabetics, for human use, shall not be subject
24to tax hereunder), 2c, 3 (except as to the disposition of taxes
25and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
265i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of

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1the Retailers' Occupation Tax Act and Section 3-7 of the
2Uniform Penalty and Interest Act, as fully as if those
3provisions were set forth herein.
4 Persons subject to any tax imposed under the authority
5granted in this paragraph may reimburse themselves for their
6seller's tax liability hereunder by separately stating the tax
7as an additional charge, which charge may be stated in
8combination, in a single amount, with State taxes that sellers
9are required to collect under the Use Tax Act and under
10subsection (e) of Section 4.03 of the Regional Transportation
11Authority Act, in accordance with such bracket schedules as the
12Department may prescribe.
13 Whenever the Department determines that a refund should be
14made under this paragraph to a claimant instead of issuing a
15credit memorandum, the Department shall notify the State
16Comptroller, who shall cause the warrant to be drawn for the
17amount specified, and to the person named, in the notification
18from the Department. The refund shall be paid by the State
19Treasurer out of a county water commission tax fund established
20under paragraph (g) of this Section.
21 For the purpose of determining whether a tax authorized
22under this paragraph is applicable, a retail sale by a producer
23of coal or other mineral mined in Illinois is a sale at retail
24at the place where the coal or other mineral mined in Illinois
25is extracted from the earth. This paragraph does not apply to
26coal or other mineral when it is delivered or shipped by the

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1seller to the purchaser at a point outside Illinois so that the
2sale is exempt under the Federal Constitution as a sale in
3interstate or foreign commerce.
4 Notwithstanding any other provision of law, for the purpose
5of determining whether a tax authorized under this Section is
6applicable, a retail sale of fuel used by an aircraft shall be
7deemed to be a retail sale at the place where the fuel is
8delivered to the aircraft. For the purposes of this paragraph,
9"fuel" has the meaning given to that term in Section 1.19 of
10the Motor Fuel Tax Law.
11 If a tax is imposed under this subsection (b) a tax shall
12also be imposed under subsections (c) and (d) of this Section.
13 No tax shall be imposed or collected under this subsection
14on the sale of a motor vehicle in this State to a resident of
15another state if that motor vehicle will not be titled in this
16State.
17 Nothing in this paragraph shall be construed to authorize a
18county water commission to impose a tax upon the privilege of
19engaging in any business which under the Constitution of the
20United States may not be made the subject of taxation by this
21State.
22 (c) If a tax has been imposed under subsection (b), a
23County Water Commission Service Occupation Tax shall also be
24imposed upon all persons engaged, in the territory of the
25commission, in the business of making sales of service, who, as
26an incident to making the sales of service, transfer tangible

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1personal property within the territory. The tax rate shall be
21/4% of the selling price of tangible personal property so
3transferred within the territory. The tax imposed under this
4paragraph and all civil penalties that may be assessed as an
5incident thereof shall be collected and enforced by the State
6Department of Revenue. The Department shall have full power to
7administer and enforce this paragraph; to collect all taxes and
8penalties due hereunder; to dispose of taxes and penalties so
9collected in the manner hereinafter provided; and to determine
10all rights to credit memoranda arising on account of the
11erroneous payment of tax or penalty hereunder. In the
12administration of, and compliance with, this paragraph, the
13Department and persons who are subject to this paragraph shall
14have the same rights, remedies, privileges, immunities, powers
15and duties, and be subject to the same conditions,
16restrictions, limitations, penalties, exclusions, exemptions
17and definitions of terms, and employ the same modes of
18procedure, as are prescribed in Sections 1a-1, 2 (except that
19the reference to State in the definition of supplier
20maintaining a place of business in this State shall mean the
21territory of the commission), 2a, 3 through 3-50 (in respect to
22all provisions therein other than the State rate of tax except
23that food for human consumption that is to be consumed off the
24premises where it is sold (other than alcoholic beverages, soft
25drinks, and food that has been prepared for immediate
26consumption) and prescription and nonprescription medicines,

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1drugs, medical appliances and insulin, urine testing
2materials, syringes, and needles used by diabetics, for human
3use, shall not be subject to tax hereunder), 4 (except that the
4reference to the State shall be to the territory of the
5commission), 5, 7, 8 (except that the jurisdiction to which the
6tax shall be a debt to the extent indicated in that Section 8
7shall be the commission), 9 (except as to the disposition of
8taxes and penalties collected and except that the returned
9merchandise credit for this tax may not be taken against any
10State tax), 10, 11, 12 (except the reference therein to Section
112b of the Retailers' Occupation Tax Act), 13 (except that any
12reference to the State shall mean the territory of the
13commission), the first paragraph of Section 15, 15.5, 16, 17,
1418, 19 and 20 of the Service Occupation Tax Act as fully as if
15those provisions were set forth herein.
16 Persons subject to any tax imposed under the authority
17granted in this paragraph may reimburse themselves for their
18serviceman's tax liability hereunder by separately stating the
19tax as an additional charge, which charge may be stated in
20combination, in a single amount, with State tax that servicemen
21are authorized to collect under the Service Use Tax Act, and
22any tax for which servicemen may be liable under subsection (f)
23of Section 4.03 of the Regional Transportation Authority Act,
24in accordance with such bracket schedules as the Department may
25prescribe.
26 Whenever the Department determines that a refund should be

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

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1the property may be issued. The tax or proof of exemption may
2be transmitted to the Department by way of the State agency
3with which, or the State officer with whom, the tangible
4personal property must be titled or registered if the
5Department and the State agency or State officer determine that
6this procedure will expedite the processing of applications for
7title or registration.
8 The Department shall have full power to administer and
9enforce this paragraph; to collect all taxes, penalties and
10interest due hereunder; to dispose of taxes, penalties and
11interest so collected in the manner hereinafter provided; and
12to determine all rights to credit memoranda or refunds arising
13on account of the erroneous payment of tax, penalty or interest
14hereunder. In the administration of, and compliance with this
15paragraph, the Department and persons who are subject to this
16paragraph shall have the same rights, remedies, privileges,
17immunities, powers and duties, and be subject to the same
18conditions, restrictions, limitations, penalties, exclusions,
19exemptions and definitions of terms and employ the same modes
20of procedure, as are prescribed in Sections 2 (except the
21definition of "retailer maintaining a place of business in this
22State"), 3 through 3-80 (except provisions pertaining to the
23State rate of tax, and except provisions concerning collection
24or refunding of the tax by retailers, and except that food for
25human consumption that is to be consumed off the premises where
26it is sold (other than alcoholic beverages, soft drinks, and

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1food that has been prepared for immediate consumption) and
2prescription and nonprescription medicines, drugs, medical
3appliances and insulin, urine testing materials, syringes, and
4needles used by diabetics, for human use, shall not be subject
5to tax hereunder), 4, 11, 12, 12a, 14, 15, 19 (except the
6portions pertaining to claims by retailers and except the last
7paragraph concerning refunds), 20, 21 and 22 of the Use Tax Act
8and Section 3-7 of the Uniform Penalty and Interest Act that
9are not inconsistent with this paragraph, as fully as if those
10provisions were set forth herein.
11 Whenever the Department determines that a refund should be
12made under this paragraph to a claimant instead of issuing a
13credit memorandum, the Department shall notify the State
14Comptroller, who shall cause the order to be drawn for the
15amount specified, and to the person named, in the notification
16from the Department. The refund shall be paid by the State
17Treasurer out of a county water commission tax fund established
18under paragraph (g) of this Section.
19 (e) A certificate of registration issued by the State
20Department of Revenue to a retailer under the Retailers'
21Occupation Tax Act or under the Service Occupation Tax Act
22shall permit the registrant to engage in a business that is
23taxed under the tax imposed under paragraphs (b), (c) or (d) of
24this Section and no additional registration shall be required
25under the tax. A certificate issued under the Use Tax Act or
26the Service Use Tax Act shall be applicable with regard to any

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1tax imposed under paragraph (c) of this Section.
2 (f) Any ordinance imposing or discontinuing any tax under
3this Section shall be adopted and a certified copy thereof
4filed with the Department on or before June 1, whereupon the
5Department of Revenue shall proceed to administer and enforce
6this Section on behalf of the county water commission as of
7September 1 next following the adoption and filing. Beginning
8January 1, 1992, an ordinance or resolution imposing or
9discontinuing the tax hereunder shall be adopted and a
10certified copy thereof filed with the Department on or before
11the first day of July, whereupon the Department shall proceed
12to administer and enforce this Section as of the first day of
13October next following such adoption and filing. Beginning
14January 1, 1993, an ordinance or resolution imposing or
15discontinuing the tax hereunder shall be adopted and a
16certified copy thereof filed with the Department on or before
17the first day of October, whereupon the Department shall
18proceed to administer and enforce this Section as of the first
19day of January next following such adoption and filing.
20 (g) The State Department of Revenue shall, upon collecting
21any taxes as provided in this Section, pay the taxes over to
22the State Treasurer as trustee for the commission. The taxes
23shall be held in a trust fund outside the State Treasury.
24 As soon as possible after the first day of each month,
25beginning January 1, 2011, upon certification of the Department
26of Revenue, the Comptroller shall order transferred, and the

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1Treasurer shall transfer, to the STAR Bonds Revenue Fund the
2local sales tax increment, as defined in the Innovation
3Development and Economy Act, collected under this Section
4during the second preceding calendar month for sales within a
5STAR bond district.
6 After the monthly transfer to the STAR Bonds Revenue Fund,
7on or before the 25th day of each calendar month, the State
8Department of Revenue shall prepare and certify to the
9Comptroller of the State of Illinois the amount to be paid to
10the commission, which shall be the amount (not including credit
11memoranda) collected under this Section during the second
12preceding calendar month by the Department plus an amount the
13Department determines is necessary to offset any amounts that
14were erroneously paid to a different taxing body, and not
15including any amount equal to the amount of refunds made during
16the second preceding calendar month by the Department on behalf
17of the commission, and not including any amount that the
18Department determines is necessary to offset any amounts that
19were payable to a different taxing body but were erroneously
20paid to the commission, and less any amounts that are
21transferred to the STAR Bonds Revenue Fund. Within 10 days
22after receipt by the Comptroller of the certification of the
23amount to be paid to the commission, the Comptroller shall
24cause an order to be drawn for the payment for the amount in
25accordance with the direction in the certification.
26 (h) Beginning June 1, 2016, any tax imposed pursuant to

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1this Section may no longer be imposed or collected, unless a
2continuation of the tax is approved by the voters at a
3referendum as set forth in this Section.
4(Source: P.A. 98-298, eff. 8-9-13; 99-217, eff. 7-31-15;
599-642, eff. 7-28-16.)
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