### (

(



### ( 

## APPENDIXB: Non-grandfathered taxes; legislative history 

## The Home Rule Municipal Retailers' Occupation Tax (65 ILCS 5/8-11-1) The Home Rule Municipal Retailers' Occupation Tax Act 

## was enacted in 1990 

## when Illinois refonned its sales tax code. The existing municipal tax structure was abolished and replaced with the home rule and non-home rule taxes. The tax is imposed by home rule municipalities on persons engaged in the business ofselling tangiblepersonal property. The rate is imposed in .25% 

## increments, and there is no maximum rate oftax. A 

## portion ofthe revenue from the tax is obligated to the STAR Bonds Revenue Fund. Though the Department collects and administers the tax, the Department maintains no control over how the revenue from this tax is used bymunicipalities afterthe State ofIllinois disburses 

## it to them. Retailers are permitted under the Retailers' Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently 1.75% 

## ofgross receipts or $5 

## per calendar year, whichever is greater, to account for retailer collection costs. 1 

## The Home Rule Municipal Retailers' Occupation Tax Act incorporates this provision byreference.2 

## The Retailers' Occupation Tax includes a number of exemptions from tax. 3 

## The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights. The State ofIllinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporatedby reference into the Home Rule Municipal Retailers' Occupation Tax Act.4

1 

### 35 ILCS 12013. 2 

### 65 ILCS 5/8-11-1 3 

### 35 ILCS 120/2-5. 4 

### 65 ILCS 5/8-11-1

### The Home Rule Municipal Service Occupation Tax (65 ILCS 5/8-11-5) 

## The Home Rule Municipal Service Occupation Tax Act was enacted in 1990 when Illinois refonned its sales tax code. The existing mlUlicipal tax structure was abolished and replaced with 

## the home rule and non-home rnle taxes. The tax is imposed by 

## home rule municipalities on persons engaged, in such municipality, in the business of making sales of service. The rate is imposed in .25% increments on the selling price of tangible personal property transferred by servicemen incident to a sale ofservice, and there is no maximum rate of tax. A portion ofthe revenue from the tax is obligated to the STAR Bonds Revenue Fund. 

## Though the Department collects and administers the tax, the Department maintains no control over how the revenue from this tax isusedby municipalities after the State ofIllinois disburses it to them. Servicemen are pe1mitted under the Service Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently 1.75% ofgross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs.5 

## The Home Rule Municipal Service Occupation Tax Act incorporates this provisionbyreference.6 

## The Service Occupation Tax includes a number of exemptions from tax.7 

## The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights. The State ofIllinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporatedbyreference inthe Home Rule Service Occupation Tax Act.8

5 

### 35 ILCS 11519. 6 

### 65 ILCS 5/8-11-5 7

### 35 ILCS 115/3-5. g 

### 65 ILCS 5/8-11-5 2

## The Non-Home Rule Municipal Retailers' Occupation Tax (65 ILCS 5/8-11- 1.3) 

## The Non-Home Rule Municipal Retailers' Occupation Tax Act was enacted after 1990 when Illinois reformed its sales tax code. The existingmunicipal tax structure was abolished and replaced with the home rule and non-home rule taxes. The tax is imposed by home rule municipalities on persons engaged in the business ofselling tangible personal property. The rate is imposed in .25% increments, and there is a maximum rate oftax of 1 %. A portion ofthe revenue from the tax is obligated to the STAR Bonds Revenue FWld. Though the Department collects and administers the tax, the Department maintains no control over how the revenue from this tax is used by municipalities afterthe State ofIllinois disburses it to them. However, the statute states that the municipality may use the proceeds ofthe tax for expenditures on municipal operations, in addition to or in lieu of expenditures on public infrastructure or for property tax relief. Retailers are pennitted under the Retailers' Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently l.75% ofgross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs.9 

## The Non-Home Rule Municipal Retailers' OccupationTax Act incorporates this provision byreference. 10 

## The Retailers' Occupation Tax includes a number ofexemptions from tax. 11 

## The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights. The State ofIllinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporated byreference into the Non-Home Rule Municipal Retailers' Occupation Tax Act. 12

9 

### 35 ILCS 120/3. ID 

### 65 ILCS 5/8-l 1-

### J.3 11 

### 35 ILCS 120/2-5. 12 

### 65 ILCS 5/8-11-1 .3 

### 3

## The Non-Home Rule Municipal Service Occupation Tax (65 ILCS 5/8-11-1.4) The Non-Home Rule Municipal Service Occupation Tax Act was enacted after 1990 when Illinois reformed its sales tax code. The existingmunicipal tax structurewas abolished and replaced with the home rule and non-home rule taxes. The tax is imposed by home rule municipalities on persons engaged, in such mlUlicipality, in the business of making sales of service. The rate is imposed in .25% increments on the selling price of tangible personal property transferred by servicemen incident to a sale ofservice, and there is a maximum rate of tax of 1%. A portion ofthe revenue from the tax is obligated to the STAR Bonds Revenue Fund. Though the Department collects and administers the tax, the Department maintains no control overhow the revenue from this tax is used bymunicipalities after the State ofIllinois disburses it 

## to them. The statute states that the tax should be used for expenditures on public infrastrncture or for propertytax relieformunicipal operations. Servicemen are pennitted under the Service Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently 1.75% ofgross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs. 13 

## The Home Rule Municipal Service Occupation Tax Act incorporates this provisionbyreference. 14 

## The Service Occupation Tax includes a number of exemptions from tax. 15 

## The only provision which specifically exempts aviation fuel is an exemption for fuel used in international ( flights. The State ofIllinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporated byreference in the Non-Home Rule Service Occupation Tax Act. 16

1:1 

### 35 ILCS 115/9. 14 

### 65 ILCS 5/8-11-1.4 15 

### 35 ILCS 115/3-5. 16 

### 65 ILCS 5/8-11-1.4 4

### I 

### The Non-Home RuleMunicipal Retailers' Occupation Tax; municipalitiesbetween 20,000 and 25,000 (65 ILCS 8-11-1.6) 

## The Non-Home Rule Municipal Retailers' Occupation Tax Act was enacted after 1990 when Il1inois reformed its sales tax code. The existingmunicipal tax structure was abolished and 

## replaced with the home rule and non-home rule taxes. The tax is imposed by 

## home rule municipalities on persons engaged in the business ofselling tangible personal property. The rate is imposed in .25% increments. 

## A portion of

## the revenue from the tax is obligated to the STAR Bonds Revenue Fund. Though the Department collects and administers the tax, the Department maintains no control overhow the revenue from this tax is used bymunicipalities after the State ofIllinois disburses it to them. Retailers are permitted under the Retailers' Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently 1.75% ofgross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs. 17 

### The Non-Home Rule Municipal Retailers' Occupation Tax Act incorporates this provision byreference. 18 

### The Retailers' Occupation Tax includes a number of exemptions from tax. 19 

### The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights. The State of Illinois recognizes some entities as exempt from sales tax. Such entities { include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporated byreference into theNon-HomeRule Municipal Retailers' OccupationTax Act.20

17 

### 35 ILCS 120/3. 18 

### 65 lLCS 5/8-11-1.6 ( 19 

### 35 ILCS 120/2-5. 20 

### 65 ILCS 5/8-11-1.6 

### 5

### TheNon-Home Rule Municipal Service Occupation Tax; municipalitiesbetween 20,000 and 25,000 (65 ILCS 5/8-11-1.7) The Non-Home Rule Municipal Service Occupation Tax Act was enacted after 1990 when Illinois reformed its sales tax code. The existingmunicipal tax structure was abolished and replaced with the home rule and non-home rule taxes. The tax is imposed by home rule municipalities on persons engaged, in such municipality, in the business of making sales of service. The rate is imposed in .25% increments on the selling price of tangible personal property transferred by servicemen incidentto a sale ofservice. A portion ofthe revenue from the tax is obligated to the STAR Bonds Revenue Fund. Though the Department collects and administers the tax, the Department maintains no control overhow therevenue from this tax is used bymunicipalities after the State ofIllinois disburses it to them. Servicemen are permitted under the Service Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently 1.75% ofgross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs.21 

### The Non-Home Rule Municipal Service Occupation Tax Act incorporates this provision by reference. 22 

## r

The Service Occupation Tax includes a number of exemptions from tax. 23 

### The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights. The State of Illinois recognizes some entities as exempt from sales tax. Such entities ( include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporatedbyreference in the Non-Home Rule Municipal Service Occupation Tax Act. 24

21 

### 35 ILCS I !5/9. 22 

### 65 ILCS 5/8- 

### !1- I.

### 7 2:1 

### 35 ILCS 115/3·5. 24 

### 65 ILCS 5/8-11-J.

### 7 

### 6

### ( 

### The Home Rule County Retailers' Occupation Tax (55 ILCS 5/5-1006) The Home Rule County Retailers' Occupation Tax Act was enacted in 1990 when Illinois 

## reformed its sales tax code. The existing municipal tax structure was abolished and replaced with the home rule and non-home rule taxes. The tax is imposed byhome rule unit counties on persons engaged in the business ofselling tangible personal property in the county. The rate is imposed in .25% increments. 

## A portion of

## the revenue from the tax is obligated to the STAR Bonds Revenue Fund. Though the Department collects and administers the tax, the Department maintains no control over how the revenue from this tax is used bymunicipalities after the State ofIllinois disburses 

### it to them. The Retailers' Occupation Tax includes a number ofexemptions from tax.25 

### The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights. The State of Illinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporated byreference into the Home Rule CountyRetailers' Occupation Tax Act.26

25 

### 35 ILCS 120/2-5. 26 

### 55 ILCS 5/5-1006 7

## The Home Rule County Service Occupation Tax (55 ILCS 5/5-1007) The Home Rule County Service Occupation Tax Act was enacted in 1990 when Illinois reformed its sales tax code. The existing municipal tax structure was abolished and replaced with the home rule and non-home rule taxes. The tax is imposed by home rule unit counties on persons engaged, in such municipality, in the business ofmaking sales of service. The rate is imposed in .25% increments on the selling price of tangible personal property transfeffed by servicemen incident to a sale ofservice, and there is no maximum rate oftax. A portion ofthe revenue from the tax is obligated to the STAR Bonds Revenue Fund. Though the Department collects and administers the tax, the Department maintains no control over how the revenue from this tax is used bymunicipalities after the State ofIllinois disburses it to them. Servicemen are pennitted under the Service Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently l.75% ofgross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs.27 

## The Home Rule County Service Occupation Tax Act incorporates this provision byreference.28 

## The Service Occupation Tax includes a number of exemptions from tax.29 

## The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights. The State ofIllinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporated byreference in the Home Rule County Service Occupation Tax Act. 30

27 

### 35 ILCS 115/9. 2R

### 55 ILCS 5/5-1007 29 

### 35 ILCS 115/3-5. 30 55 

### ILCS 5/5-1007 

### 8 

## (

### (



### (



## ( The Metro-East Park and Recreation District Retailers' Occupation Tax (70 ILCS 1605/30(a)) The Metro-East Park and Recreation District Tax was enacted in 1999. The Metro-East Park and Recreation District develops, operates, and maintains a public system oftrails and parks throughout Madison, St. Clair, Monroe, Clinton, and Jersey Counties. The tax is imposed on all persons engaged in the business ofselling tangible personal property at retail within the district. The tax is imposed at the rate of 1/10%. A portion ofthe revenue is placed in the STAR Bonds Fund, but the Department does not 

## maintain any control over how local tax revenue is used after it 

## is disbursed. The statute mandates that fifty percent ofthe amount collected from each county is distributed by the MetroEast District to the county which collected it. At least 50% ofthis amount is used for grants to park districts and municipal park and recreation departments. Fifty percent of the amount collected from each countyis placed inthe Metro-East Park and Recreation District Fund.31 

### The Retailers' Occupation Tax includes a number ofexemptions from tax. 32 

### The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights. The State of Illinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporated byreferenceinto the Metro East Park and Recreation District Act. 33 

### Retailers are pennitted under the Retailers' Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently 1.75% ofgross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs.34 

### The Metro-East Park and Recreation DistrictAct incorporates this provision byreference.35

31 

### 70 ILCS 1605/35 32 

### 35 ILCS 120/2-5. :i.1 

### 70 ILCS 1605!30(a) 34 

### 35 ILCS 120/3. 35 

### 70 ILCS 1605/30(a) 9

## The Metro-East Park and Recreation Distiict Service Occupation Tax (70 ILCS 1605/30(b)) If a Metro-East Park and Recreation District Retailers' Occupation Tax is imposed, a service occupation tax must also be imposed at the same rate on all persons engaged, in the District, in the business of making sales of service, who, as an incident to making sales of service, transfer tangiblepersonal property within the District incident to the sale ofservice. A portion ofthe revenue is deposited in the STAR Bonds Fund, but the Department does not maintain any control over how local tax revenue is used after it is disbursed. The statute mandates that fifty percent ofthe amount collected from each county is distributed by the MetroEast Distiict to the county which collected it. At least 50% ofthis amount is used for grants to park districts and municipal park and recreation departments. Fifty percent of the amount collected from each county is placed in the Metro-East Park and Recreation District Fund. 36 

## Servicemen are permitted under the Service Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently 1.75% ofgross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs.37 

## The Metro East Park and Recreation District Actincorporates this provision byreference. 38 

## The Service Occupation Tax includes a number of exemptions from tax. 39 

## The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights. The State of Illinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporated by reference inthe Metro East Park and Recreation District Act.40

36 

### 70 ILCS 1605/35

' 7 

### 35 ILCS 115/9.

~8 

### 70 ILCS 1605/30(b) 39 

### 35 ILCS 115/3-5. 40 

### 70 ILCS 1605/30(b) 

### 10 

## I

(

## The Special County Retailers' Occupation Tax for Public Safety or Transportation (55 ILCS 5/5- 1006.S(a)) 

## The Special County Retailers' Occupation Tax for Public Safety or Transportation was first enacted in 1996. County governments are authorized to impose (with voter approval) a tax on tangible personal property sold in the county. The rate is imposed in .25% increments, and there is no maximum rate limit. A portion ofthe revenue is dedicated to the STAR bonds fund, but the remainder ofthe revenue is to be used exclusively for public safety or transportation purposes in that county. This includes crime prevention, detention, fire fighting, police, medical, ambulance, or other emergency services. Transportation includes, but is not limited to, the construction, maintenance, operation, and improvement ofpublic highways, and passenger rail transportation. The Retailers' Occupation Tax includes a number ofexemptions from tax.41 

## The only provision which specifically exempts aviation fuel is an exemption for fuel 

## used in international flights. The State of Illinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporated byreference into the Special County Retailers' Occupation Tax for Public Safety, Public Facilities, orTransportation.42 

## Retailers are pennitted under the Retailers' Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently 1.75% ofgross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs.43 

## The Special County Retailers' Occupation Tax for Public Safety, Public Facilities, orTransportation incorporates this provision by

## reference.44

• 11 

### 35 ILCS 120/2-5. 42 

### 55 ILCS 5/5-1006.5(a) (_ {:l 

### 35 ILCS 120/3. 44 

### 55 ILCS 5/5-1006.S(a) 11

### The Special County Service Occupation Tax for Public Safety or Transportation (55 ILCS 5/5- 1006.S(b)) 

### If a county imposes a Special County Retailers' Occupation Tax for Public Safety or Transp01tation then the county must also impose a Special County Service Occupation Tax for Public Safety or Transportation at the same rate upon all persons engaged, in the county, in the business ofmaking sales ofservice, who, as an incident to making those sales ofservice, transfer tangible personal property within the county. The rate is imposed in .25% increments, and there is no maximum rate limit. A portion ofthe revenue is dedicated to the STAR bonds fund, but the remainder ofthe revenue is to be used exclusively for public safety or transportation purposes in that county. This includes crime prevention, detention, fire fighting, police, medical, ambulance, or other emergency services. Transportation includes, but is not limited to, the construction, maintenance, operation, and improvement ofpublichighways, and passengerrail transportation. Servicemen are permitted under the Service Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently 1.75% ofgross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs.45 

### The Special County Service Occupation Tax for Public Safety, Public Facilities, or Transportation incorporates this . . b fi 46 

### prov1s10n y re crence. I



### The Service Occupation Tax includes a number of exemptions from tax.47 

### The only ( provision which specifically exempts aviation fuel is an exemption for 

## fuel used in international flights. The State ofIllinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporated by reference in the Special County Service Occupation Tax for Public Safety, Public Facilities, or Transportation.4

45 

### 35 ILCS 115/9. 4u

### 55 ILCS 5/5-J006.5(b) 47 

### 35 ILCS 115/3-5. 48 

### 55 ILCS 5/5-1006.S(b) 

### 12

### ( The Environmental Impact Fee (415 ILCS 125/310) 

### The Environmental Impact Fee was first imposed in 1996. The fee is imposed on the receiver of certain petroleum products in Illinois, including aviation fuel. The fee is $60 per 7,500 gallons offuel that is sold orused in Illinois. Aviation fuel sold to qualified air carriers is currently exempt from the tax. CmTently, this includes fuels and kerosene at airports with over 170,000 operations per year, located in a city ofmore than 1,000,000 inhabitants, for sale to or use 

### by holders ofcertificates ofpublic convenience and necessity or foreign air earlier permits, 

### issued by 

### the US Department of Transportation, and their air carrier affiliates, or upon importation or receipt of aviation fuels and kerosene at facilities owned or leased by those certificate orpermit holders and used in their activities at such an airport. All moneyreceived from the fee is deposited in the Underground Storage Tank Fund and used to administer the Leaking Underground Storage Tank Program.49

49 

### 415 ILCS 125/320 13

### The Leaking Underground Storage Tank (35 !LCS 505/2a) The Leaking Underground Storage Tank tax was first imposed in 1990on theprivilege of 

## being a receiver in this State offuel for sale or use. The tax is not imposed on aviation fuel or 

## kerosene at airports with over 170,000 operations per year, located in a city of more than 1,000,000 inhabitants for sale to or use by 

## holders of certificates of public convenience and necessity or foreign air canier permits, issued by the U.S. Department of Transportation, and their air caffier affiliates, or upon the importation or receipt of aviation fuels and kerosene at facilities owned or leased by those certificate orpermit holders and used in their activities at an airport described above. Sellers are allowed a discount for timely filing and paying taxes due under the Act to reimburse sellers for collection costs. Priorto June 30, 2003) the discount was 2%. The discount is currently 1.75%.50 

### All money received from the Leaking Underground Storage Tank Tax is deposited into the Underground Storage Tank Fund.51 

### The State ofIllinois faces additional funding challenges as the Leaking Underground Storage Tank Tax and Enviromnental Impact Fee are imposed on aviation fuel. 52 

### The Underground Storage Tank Fund assists tank owners and operators with cleanup costs associated with petroleum leaks from underground storage tanks. The Fund also serves to satisfy the Federal financial assurance requirements for Illinois tank owners and operators. The Environmental Impact Fee and the Underground Storage Tank fee are imposed on the receiver ofcertain petroleum products in Illinois) including aviation fuel. The fees are treated as one tax for a combined rate of 1.1 cents per gallon (Underground Storage Tank rate of $.003 per gallon of fuel and EIF rate of $.008 per gallon offuel sold). Aviation fuel sold to qualified air carriers is currently exempt from thetax.

so 35 JLCS 505/2b 51 35 ILCS 505/Sa 52 35 ILCS 505/2a; 415 ILCS 125/301 14

### The Rock Island County Retailers' Occupation Tax (55 ILCS 5/5-!008.5(b)) The Rock Island County Retailers' Occupation Tax was first imposed in 1997. The tax is imposed at the rate of .25% on all persons engaged in the business of selling tangible personal property at retail in the county. 

## The Retailers' Occupation Tax includes a number ofexemptions from tax. 53 

## The only provision which specifically exempts aviation fuel is an exemption for fuel used in international 

## flights. The State ofIllinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or govermnental bodies. These exemptions are incorporated byreference into the Rock Island County Retailers' Occupation Tax. 54 

### Retailers are permitted under the Retailers' Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently 1.75% ofgross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs.55 

### The Rock Island County Retailers' Occupation Tax incorporates this provision byreference.56 

### Though the Department collects the tax, the Department does not maintain any control over how local governments use the funds after the revenue is disbursed to them. However, the statute states that the purpose of the tax is for economic development activities, including creation and retention ofjob opportunities, support of affordable housing oppmiunities, and ( enhancementofquality oflife improvements.57

53 

### 35 ILCS 120/2-5. 54 

### 55 ILCS 5/5-1008.5(b) 55 

### 35 ILCS 120/3. 56 

### 55 ILCS 5/5-1008.S(b) 57 

### 55 ILCS 5/5-1008.S(a) 15

### The Rock Island County Service Occupation Tax (55 ILCS 5/5-1008.S(c)) 

### Ifa Rock Island County Retailers' Occupation Tax is imposed, the statute requires that a 

## Rock Island County Service Occupation Tax also be imposed at the same rate upon all persons engaged, in the county, in the business ofmaking sales ofservice, who as an incident to making 

## those sales ofservice, transfer tangible personal property within the county incident to a sale of service.

## Servicemen are permitted under the Service Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently 1.75% ofgross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs.58 

## The Rock Island County Service Occupation Tax incorporates this provision byreference.59 

## The Service Occupation Tax includes a number of exemptions from tax.60 

## The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights. The State ofIllinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or relit,rious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporated byreference in the RockIsland County Service Occupation Tax.61 

## Though the Department collects the tax, the Department does not maintain any control over how local governments use the funds after the revenue is disbursed to them. However, the statute states that the purpose of the tax is for economic development activities, including ( creation and retention ofjob opportunities, support of affordable housing opportunities, and enhancement ofqualityoflifeimprovements.62

58 

### 35 ILCS 115/9. 59 

### 55 ILCS 5/5-1008.5(c) ~o 

### 35 ILCS 115/3"5. 61 

### 55 ILCS 5/5-1008.S(c) 62 

### 55 ILCS 5/5-1008.5(a) 16

## ( The County Flood Prevention Retailers' Occupation Tax (70 ILCS 750/25(a)) The County Flood Prevention Retailers' Occupation Tax was enacted in 2008. In emergency situations, the Board ofCommissioners ofa flood prevention district may determine that a county should impose a flood prevention retailers' occupation tax. The tax is imposed upon all persons engaged in the business ofselling tangible personal property at retail within the territory ofthe district to provide revenue to pay the costs ofproviding emergency levee repair and flood prevention and secure bonds, notes, and other indebtedness for a period not to exceed 25 years or as required to repay the indebtedness. The tax is imposed at a rate of.25% ofgross receipts. The Department ofRevenue collects and administers the tax. The Retailers' Occupation Tax. includes a number ofexemptions from tax. 63 

## The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights. The State of Illinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporated byreference intothe Flood Prevention District Act.64 

## Retailers are permitted under the Retailers' Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently 1.75% ofgross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs.65 

## The Flood Prevention District Act incorporates this provision by reference.66

63 

### 35 ILCS 120/2-5. M 

### 70 ILCS 750/25(a)) 65 

### 35 ILCS 120/3. 

### u, 70 ILCS 750/25(a)) 17

### The County Flood Prevention Service Occupation Tax (70 ILCS 750/25(b)) If 

## a county flood prevention retailers' occupation tax is imposed in a county, a county flood prevention service occupation tax must also be imposed. The tax is imposed upon all persons engaged within the territory of the district in the business ofmaking sales of service, who as an incident to making the sales ofservice, transfer tangible personal property incident to 

## a sale of service. In emergency situations, the Board ofCommissioners of a flood prevention district may determine that a county should impose a flood prevention retailers' occupation tax. The tax is imposed upon all persons engaged in thebusiness ofselling tangiblepersonal property 

## at retail within the territory of the district to provide revenue to pay the costs of providing emergency levee repair and flood prevention and secure bonds, notes, and other indebtedness for a period not to exceed 25 years or as required to repay the indebtedness. The tax is imposed at a rate of.25% ofgross receipts. The DepartmentofRevenue collects and administers the tax. The Service Occupation Tax includes a number of exemptions from tax. 67 

## The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights. The State of Illinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporated byreference inthe Flood Prevention District Act.68 

### (



## Servicemen are permitted under the Service Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently 1.75% ofgross receipts or $5 per ( calendar year, whichever is greater, to account for retailer collection costs.69 

## The Flood Prevention District Act incorporates this provisionbyreference.70

67 

### 35 ILCS 115/3~5. (,S 

### 70 ILCS 750/25(b) 69 

### 35 (LCS 115/9. 70 

### 70 ILCS 750/15(b) 18

### ( The County School FacilityRetailers' OccupationTax (55 ILCS 5/5-1006.7(a)) 

## The County School Facility Retailers' Occupation Tax was enacted in 2007. In all counties, the tax may be imposed upon all persons engaged in the business of selling tangible personal property at retail. The Department of Revenue collects and administers the tax and retains a 2% 

## fee for administering the tax, but the remainder of the revenue generated is statutorily dedicated to be used exclusively for "'school facility purposes" in the county. The tax is imposed in .25%increments, not to exceed 1%. 

## The purpose of this tax is to establish an alternative funding mechanism for school districts in Illinois to the traditional property tax revenue stream. The funding is distributed proportionate to the student population ofeach district in a coW1ty. The revenue can be used to pay offexisting debtwhich was incurred in the past. The revenue can also fund projects and any school facility related capital expense such as building and repairing facilities, energy efficiency improvements, safety and security measures, land acquisitions, etc
..,The funds are not permitted to beused for administrative or operating expenses such as salaries. The Retailers' Occupation Tax includes a number of exemptions from tax. 71 

### The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights. The State of Illinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively chaiitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporated byreference into the County SchoolFacility Tax.72 Retailers ai·e permitted under the Retailers' Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently 1.75% of gross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs.73 

### The County School Facility Tax incorporates this provision byreference.74

71 

### 35 lLCS 120/2-5. 72 

### 55 ILCS 5/5-l006.7{a) 73 

### 35 

### ILCS 120/3. 74 

### 55 ILCS 5/5-l006/7(a) 19

### The County School Facility Service Occupation Tax (55 ILCS 5/5-1006.7(b)) 

### Ifa county imposes a County School Facility Retailers' Occupation Tax, the countymust 

## also impose a County School Facility Service Occupation Tax at the same rate upon all persons engaged, in the county, in the business ofmaking sales ofservice, who, as an incident to making those sales ofservice, transfer tangible personal property v.rithin the county incident to the sale of 

## service. The Department ofRevenue collects and administers the tax and retains a 2% fee for administering the tax, but the remainder ofthe revenue generated is statutorily dedicated to be used exclusively for "school facility purposes" in the county. The tax is imposed in .25% increments, not to exceed I%. 

## The purpose of this tax is to establish an alternative funding mechanism for school districts in Illinois to the traditional property tax revenue stream. The funding is distributed proportionate to the student population ofeach district in a county. The revenue can be used to pay offexisting debt which was incuffed inthe past. The revenue can also fund projects and any school facility related capital expense such as building and repairing facilities, energy efficiency improvements, safety and security measures, land acquisitions, etc
...The funds are not pennitted to be used for administrative or operating expenses such as salaries. The Service Occupation Tax includes a number of exemptions from tax.75 

## The only (



## provision which specifically exempts aviation fuel is an exemption for fuel used in international ( flights. The State ofIllinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporated byreference in the County School FacilityTax.76 

## Servicemen are permitted under the Service Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is cuffently 1.75% ofgross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs.77 

## The County School FacilityTax incorporates this provision byreference.78

75 

### 35 ILCS 115/3-5. 76 

### 55 ILCS 5/5-1006.?(b) 77 

### 35ILCS 115/9. 78 

### 55 ILCS 5/5-1006.?(b) 

### 20

### ( The Salem Civic Center Retailers' Occupation Tax (70 ILCS 200/245-12(b)) 

## The Salem Civic Center Retailers' Occupation Tax was enacted in 1998. The tax is imposed in .25% increments, not to exceed 1%. The tax is imposed upon all persons engaged in 

## the business of selling tangible personal property at retail in the metropolitan area of Salem in Marion County. The Department of Revenue collects and enforces the tax. However, the Department does not maintain any control over the revenue after it 

## is disbursed to the local governments. The Civic Center Code states that the purpose ofthe Act is to enhance the ability ofcitizens to avail themselves ofcivic and cultural centers in the State ofIllinois.79 

## The Retailers' Occupation Tax includes a number of exemptions from tax. 80 

## The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights. The State of lllinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporatedbyreference into the Salem Civic Center Tax.81 

## Retailers are permitted under the Retailers' Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is cUITently 1.75% ofgross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs.82 

## The Salem Civic Center Tax incorporates this provisionbyreference. 83

79 

### 70 ILCS 200/2-1 

### so 35 ILCS 120/2-5. 81 

### 70 ILCS 200/245-12{b) 82 

### 35 ILCS 120/3. 83 

### 70 ILCS 200.1245-12(b) 21

### The Salem Civic Center Service Occupation Tax (70 ILCS 200/245-12(c)) 

### If 

## a Salem Civic Center Retailers' Occupation Tax is imposed, a Salem Civic Center Service Occupation Tax must also be imposed at the same rate (.25% increments, not to exceed I%) upon all persons engaged, in the metropolitan Salem area in the business ofmaking sales of service, who incident to making such sales of service, transfer tangible personal property. The 

## Department of Revenue collects and enforces the tax. However, the Department does not maintain any control over the revenue after 

### it is disbursed to the local governments. The Civic 

## Center Code states that the purpose of the Act is to enhance the ability of citizens to avail themselves ofcivic and cultural centers in the State ofIllinois. 84 

### The Service Occupation Tax includes a number of exemptions from tax. 85 

### The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights, The State ofIllinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporated byreference in the Salem Civic Center Tax.86 

### Servicemen are permitted under the Service Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently 1.75% of gross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs.87 

### The Salem Civic Center Tax incorporates this provision byreference.88

~ 4 

### 70 lLCS 200/2-1 35 

### 35 ILCS 115/3-5. So 

### 70 ILCS 200/245-ll(c)

~7 

### 35 ILCS 

### 115/9. 88 

### 70 ILCS 200/245-ll(c) 

### 22 (( 

### STARBond Retailers' Occupation Tax (50 ILCS 470/3l(b)) 

## The STAR Bond Retailers' Occupation Tax was enacted in 2010. The Department collects and administers the tax, but the proceeds ofthe tax are deposited into a special fund called the STAR Bonds Tax Allocation Fund for the purpose ofpaying STAR Bonds project costs and obligations incurred in the payment of those costs if 

## such taxes are designated as pledged STAR revenues by resolution or ordinance or will be placed in a political subdivisions' general corporate fund ifsuch taxes are not designated as pledged STAR revenues by resolution or ordinm1ce. 

### The tax is imposed upon all persons engaged in the business ofselling tangible personal 

## property at retail in the STAR bonds district at a rate in .25% increments, not to exceed 1 % 

## of gross receipts. The Retailers' Occupation Tax includes a number ofexemptions from tax. 89 

## The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights. The State of Illinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporated byreference into the STAR Bonds Retailers' Occupation Tax.90 

## Retailers are 

## pennitted under the Retailers' Occupation Tax Act to take a discount for ( timely filing and paying taxes due. The discount is currently 1.75% ofgross receipts or SS per calendar year, whichever is greater, to account for retailer collection costs.91 

## The STAR Bonds Retailers' Occupation Tax incorporates this provisionby reference.92

8'> 

### 35 ILCS 12012-5. <){) 

### 50 lLCS 470/31(b) 91 

### 35 ILCS 120/3. 

### n 50 ILCS 470/3l(b) 

### 23

### STAR Bond Service Occupation Tax (50 ILCS 470/3l(c)) 

### If

## a STAR 

## Bond Retailers' Occupation Tax has been imposed, a STAR Bond Service Occupation Tax must also be imposed at the same rate (.25% increments, not to exceed 1%) upon 

## all persons engaged, in the STAR Bond district, in the business ofmaking sales ofservice, who, as an incident to making those sales of service, transfer tangible personal property within the STAR Bond district. The Department collects and administers the tax and retains 3%to administer the tax, but the proceeds ofthe tax are deposited into a special fund called the STAR Bonds Tax Allocation 

## Fund for the purpose of paying STAR Bonds project costs and obligations incmred 

## in the payment ofthose costs if

## such taxes are designated as pledged STAR revenues by resolution or ordinance or will be placed in a political subdivisions' general corporate fund if 

## such taxes are not designated as pledged STARrevenues byresolution or ordinance. The Service Occupation Tax includes a number of exemptions from tax.93 

## The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights. The State ofIllinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or goverrunental bodies. These exemptions are incorporated byreference in the STAR Bonds Service Occupation Tax.94 

## Servicemen are permitted under the Service Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently 1.75% ofgross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs.95 

## The STAR Bonds Service Occupation Tax incorporates this provision byreference.96

9

·

1 

### 35 ILCS 115/3-5. 9' 

### 50 ILCS 470/3l(c) 95 

### 35 ILCS 115/9. 96 

### 50 ILCS 470/3l(c) 

### 24 

### (

### (



### ( 

### The Business District Retailers' Occupation Tax (65 ILCS 5/l 1-74.3-6(b)) 

## The Business District Retailers' Occupation Tax was enacted in 2005. The corporate authorities of a municipality that has designated a business district may, by ordinance, impose 

## the Business District Retailers' Occupation Tax upon all persons engaged in the business of selling tangible personal property in the business district. The tax is imposed in .25% increments, not to exceed a rate of 1 %. The Department ofRevenue collects and administers the tax and retains a 2% administrative fee, but the proceeds ofthe tax are deposited into a special fund called the Business District Tax Allocation Fund for the purpose ofpaying orreimbursing business districtproject costs and obligations. The Retailers' Occupation Tax includes a number of exemptions from tax.97 

### The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights. The State of Illinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively chmitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporated byreferenceinto the Business District Retailers' Occupation Tax.98 

### Retailers are pennitted under the Retailers' Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently 1.75% ofgross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs.99 

### The Business District Retailers' Occupation Tax incorporates this provisionbyreference. 100

97 

### 35 ILCS 120/2-5. 

### ~s 65 ILCS 

### ll-74.3-6(b)

~9 

### 35 lLCS 120/3. 100 

### 65 ILCS l

### l-74.3-6(b)


### 25

## The Business District Service Occupation Tax (65 ILCS 5/11-74.3-6(c)) If

## a Business District Retailers' Occupation Tax is imposed, a Business District Service Occupation Tax must also be imposed upon all persons engaged, in the business district, in the business of making sales of service, who as an incident to making sales of service, transfer tangible personal property within the business district. The tax must beimposed at the same rate (.25% increments, not to exceed 1%). The Department ofRevenue collects and administers the tax and retains a 2% administrative fee, but the proceeds ofthe tax are deposited into a special fund called the Business District Tax Allocation Fund for the purpose ofpaying orreimbursing business districtproject costs and obligations. The Service Occupation Tax includes a number of exemptions from tax. 101 

## The only provision which specifically exempts aviation fuel is an exemption for fuel used in international flights. The State of Illinois recognizes some entities as exempt from sales tax. Such entities include not-for-profit arts and cultural organizations, exclusively charitable or religious organizations, senior citizen organizations or governmental bodies. These exemptions are incorporated by reference inthe Business District Service Occupation Tax. 102 

## Servicemen are pennitted under the Service Occupation Tax Act to take a discount for timely filing and paying taxes due. The discount is currently 1.75% ofgross receipts or $5 per calendar year, whichever is greater, to account for retailer collection costs. 103 

## The Business District Service Occupation Tax incorporates this provisionby

## reference. 104

IOI 

### 35 ILCS 115/3-5. wi 

### 65 ILCS l 1-74.3-6(c) ID} 

### 35 ILCS 115/9. iw 

### 65 ILCS l l-74.3-6(c) 

### 26 

## (

### Additional Non-Grandfathered portions oftax The following portions oftaxes which are otherwise grandfathered are not grandfathered because 

## of changes in the rate of tax after December 30, 1987. See Appendix A for additional infonnation. The Retailers' Occupation Tax (1.25% ofthe 6.25%rate is not grandfathered) The Use Tax (l.25% ofthe 6.25% rate is not grandfathered) The Service Occupation Tax (l.25% ofthe 6.25% rate is not grandfathered) The Service Use Tax (1.25% ofthe 6.25% rate is not grandfathered) The Regional Transportation Authority Retailers' Occupation Tax in the counties of DuPage, Kane, Lake, McHenry, and Will (.5% ofthe

.75%rate is not grandfathered) The Regional Transportation Authority Service Occupation Tax inthe counties of DuPage, Kane, Lake, McHenry, and Will (.5% ofthe .75% rate is not grandfathered) The Metro-East Mass Transit District Retailers' Occupation Tax in St. Clair County (.5% ofthe .75% rate is not grandfathered) The Metro-East Mass Transit District Service Occupation Tax in St. Clair County (.5% ofthe .75% rate isnot grandfathered)

27

### (

28( 8·11·1. Home Rule Municipal Retailers' Occupation Tax Act, S.H.A. ch. 24 

### '!I 8·11"1

S.H.A. ch. 24 ,i 8-11-1 SMITH-HURD ILLlNOISANNOTATED STATUTES 

### CHAP1ER24. CITIESAND VILLAGES 

### ILLINOIS MUNICIPAL CODE ARTICLE 8. FINANCE DIVISION 11. CERTAIN REVENUETAXES
8-11-1. Home Rule Municipal Retailers' Occupation Tax Act

§ 8-11-1. The corporate authorities ofa home rule municipality may impose a tax upon all persons engaged in the business of selling tangible personal property, other than an item of tangible personal property titled or registered with an agency of this State's government, at retail in the municipality on the gross receipts from such sales made in the course of such business. Ifimposed, such tax shall only be imposed in 

### Y..%, increments. On and after September 1, 1991, this additional tax may not be imposed on the sales offood for human consumption which is to be consumed offthe premises where it is sold (other than alcoholic bewrages, soft drinks and food which has been prepared for immediate consumption) and prescription and nonprescription medicines, dmgs, medical appliances and insulin, urine testing materials, syringes and needles used by diabetics. The tax imposed by ahome rule municipality pursuant to this Section and all civil penalties that may be assessed as an incidentthereofshall be collected and enforcedbythe State Department ofRevenue. The certificate ofregistration which is issued bythe Department to aretailerunderthe ''Retailers' Occupation Tax Act", approved June 28, 1933, as amended, 1 shall pem1it such retailer to engage in abusiness which is taxable under any ordinance orresolution enactedpursuant to this Section without registering separately with the Department under such ordinance or resolution or under this Section. The Department shall have foll power to administer and enforce this Section; to collect all taxes and penalties due hereunder; to dispose of taxes and penalties so collected in the mannerhereinafter provided, and to determine all rights to creditmemoranda, arising on account ofthe erroneous payment oftax or penalty hereunder. In the administration of, and compliance with, this Section, the Department and personswho are subjectto this Sectionshallhave the same rights,remedies, privileges, inmmnitics,powers and duties, and be subjectto the same conditions, restrictions, limitations, penalties and definitions ofterms, and employ the same modes ofprocedure, as arc prescribed in Sections I, 1 a, Id, 

### Je, lf, Ii, lj, 2 2 (in respect to all provisions therein otherthan the State rate oftax), 2c, 3 3 (except as to the disposition oftaxes and penalties collected),4, 5, 5a. 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5/, 6, 6a,6b, 6c, 7, 8, 9, IO, 11, 12, 13 and 131/i ofthe"Retai!ers' OccupationTax Act", as the same arenowormayhereafter beamended, 4 as folly as ifprovisions containedin those Sections ofthe "'Retailers' OccupationTax Act" were setforth herein.

No tax may be imposed by a home rnlc municipality pursuant to this Section unless snch municipality also imposes a tax at the same rate pursuant to Section 8-11-5 ofthis Act.

Persons subject to any tax imposedpursuantto the authority granted in this Section mayreimburse themselves for their seller's tax liability hereunderby separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax which sellers arerequired to colicctunderthe "Use Tax Act", 5 pursuantto such bracket schedules as the Department may prescribe.

Wheneverthe Department detennincs that arefund should be made underthis Sectionto a claimant instead ofissuing a credit memorandum, the Department shall notifythe State Comptroller, who shall causethe order lo be drawn forthe amount specified, and to the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out ofthe home rnle municipal retailers' occupation tax fond.

The Departmentshall fonhwithpay overtothe StateTreasnrer, ex officio, as trnstee, all taxes andpenalties co!lected hereunder. On orbefore the 25th day ofeach calendarmonth, the Department shall prepare and certify to the Complrol!erthe disbursement ofstated sums ofmoneyto named municipalities, themunicipalitiesto bethose from which retailers havepaidtaxes orpenalties hereunder to the Department during the second preceding calendar month. The amount to be paid to each municipality shall be the amOllilt (not including credit memoranda) collected hereunder during the second preceding calendar month by the Department plus an amount the Department detem1ines is necessary to offset any amounts which were erroneously paid to a8-11-1. Home Rule Municipal Retailers' Occupation Tax Act, S.H.A. ch. 24 

### 'if 8·11-1

different taxing body, and not including an amount equal to the amount ofrefunds made during the secondpreceding calendar month by the Department on behalfofsuch municipality. and not including any amount which the Department determines is necessary to offset any amounts which were payable to a different taxing body but were erroneouslypaid to the municipality. Within IO days after receipt, by the Comptroller. ofthe disbursement certification to the municipalities. provided for in this Section to be given to the Comptrollerby the Department, the Comptroller shall causethe orders to be drawn for lite respective amounts in accordance with the directions containc:d in such certification.

ln addition to the disbursemem required by the preceding paragraph, an allocation shall be made in March 1987 and each year thereafter, to each municipality which received more than $500,000 in disbursements under the preceding paragraph in the preceding calendaryear. The allocation shall be in an amount equal to the average monthly distribution made to each such municipality under the preceding paragraph during the preceding calendar year (excluding the 2 months ofhighest receipts). The distribution made in March 1988 and each yearthereafterunder this paragraphand theprecedingparagraph shallbereduced by the amount allocated and disbursed underthis paragraph in the preceding calendar year. The Department shall prepare and certify to lhe Comptrollerfor disbursementthe allocations made in accordance with this paragraph.

Forthe purpose ofdete1mining the local governmental unit ·whose tax is applicable, a retail sale, bya producerofcoal or other mineral mined in Illinois, is a sale at retail at the place where the coal or othermineral mined in ll!inois is extracted from the earth. This paragraph does not apply to coal orothermineral when it is delivered or shipped by the seller to the purchaser at a pointoutside Illinois so that the sakis exempt under the Federal Constitution as a sale in interstate or foreign commerce. Nothing in this Section shall be construed to authorize a municipality to impose a tax upon the privilege ofengaging in any business whichunder the constitution ofthe United States may not be made the subject oftaxation by this State.

An ordinance orresolution imposing ordiscontinuing atax hereunder or effecting a change in the rate thereofshall be adopted and a certified copy thereof filed with the Department on or before the first day of June, whereupon the Department shall proceed to administer and enforce this Section as ofthe first day ofSeptember next following such adoption and filing.

When certif)-'ing the amount ofa monthly disbursement to a municipalityunderthis Section, the Department shall increase or decrease such amount by an amount necessary to offset any misallocation ofpre\"ious disbursements. The offset amount shaU be the amount erroneously disbursed within theprevious 6 months from the time a misallocation is discovered.

Any unobligatedbalance remaining in theMunicipal Retailers' Occupation TaxFund on December 31, 1989,which fund was abolished by Public Act 85-1135, and all receipts ofmunicipal tax as a result ofaudits ofliability periods priorto January I, 1990, shallbepaid into the Local GovernmentTax Fund, for distribution as providedby this Sectionpriorto the enactment of Public Act 85-1135. All receipts ofmunicipal tax as a result ofan assessment not arising from an audit, for liability periods priorto January l, 1990, shallbepaid into the Local Government Tax Fund for distribution beforeJuly I, 1990, as provided by this Section prior to the enactment ofPublic Act 85-1135, and on and after July I, 1990, all such receipts shall be distributed as providedin Section 62-l 8 of"An Act in relation to State finance", appro\·ed June 10, 1919, as amended. 6

As used in this Section, "Municipal'' and '';\fonicipality·• means a city, village orincorporatedtown, including an incorporated town which has superseded a civil township.

This Section shall be known and may be cited as the "Home Rule Municipal Retailers' Occupation TaxAct". 1962 Main Volume Credit(s) 1961, May 29, Laws 1961, p. 576, § 8-11-1; 1961, July 25, Laws 1961, p. 1876, 

### § I. !990 Pocket Part Credit(s) Amendedby Laws 1963,p. 54, § 

### !: Laws 1963, p. 1684, § I;Laws 1963,p. 1688, § I; Laws 1965,p. 66, § I; Laws 1965,p. 374, § 1; Laws 1965, p. 398, § I; Laws 1967, p. 1109, § 1; Laws 1967, p. 2960, § I; Laws 1968, p. 507, § I, eff. July I, 1969; P.A. 76-340, § I, eff. July l, 1969; P.A. 76-1889, § I, eff. Oct. 10, 1969; P.A. 76-2045, § l, eff. July 1, 1970; P.A. 77-131, § l, eff. July 1, 1971: P.A. 77-279, § l, eff. July 14, 1971; P.A. 77-1024, § l, eff. Aug. 17, 1971; P.A. 77-1991, § l, eff. July 10, 1972; P.A. 78-240, § I, eff. Sept. 1, 1973; P.A. 78-255, § 61,eff. Oct. 1, 1973; P.A. 78-592, § 15,eff. Oct. I, 1973; P.A. 78-1255, § I, cff. Dec. 5, 1974; P.A. 78-1297, § 6, eff. March4, 1975; P.A. 79-1078, § l,eff.Oct. 1, 1975; P.A. 80-1292, § 5, eff. Jan. I, 1979: P.A. 81-1379, § 5, eff. Aug. 12. 1980; P.A. 81-1509, Art. IV, § 34, eff. Sept. 26, 1980; P.A. 81-1550, Art. I, § 9, eff. Jan. 8, 1981; P.A. 82-683, § 5, eff. Nov. 12, !981; P.A. 82-1013. § 5, eff. Sept. 17, 1982; P.A. 82-1035, Art. II,§ 1, eff. Dec. 22, 

### (

### ( 8"11·1. Home Rule Municipal Retailers' Occupation Tax Act. S.H.A. ch. 24 

### 'IJ 8·11·1
1982; P.A. 83-1253, § I, eff. Jan. I, 1985: P.A. 83-1362, Art. UL 

### §3, eff. Sept. JL !984; PA 84-149, § I, eff. Aug. 12, 1985; P.A. 84-940, § 1, eff. Sept. 25, 1985; P.A. 84-1262, 

### § \, eff. Jan. 1, 1987; P.A. 84-1308, Art. II,§ 30, eff. Aug. 25, 1986; P.A. 84-1457, § \, eff. Jan. 6, 1987: P.A. 85-293. Art.11, 

### § 4. eff. Sept. 8, 1987: P.A. 85-1135, Art. II,§ 

### I. eff. Jan. I. !990; P.A. 85-1409, 

### § l, eff. July I, 1989; P.A. 86-820, Art. 

### JI,§ 2-2, eff. Sept. 7, 1989; P.A. 86-928, Art. 3, § I, eff. Jan. 

### I. 1990.

I Chapter 120,

### ~ 440 et seq. 2 Chapter 120. ~<fj 440, 440a. 440d, 440e, 440f~ 440i, 440j, 441. 3 Chapter 120,

# r~ 44lc, 442. 4 Chapter 120, ,·~ 1443 to 444g, 444h {repealed), 44-h to 444/, 445, 445a to 445c, 446 to 450, 451 and 452.
5 Chapter !20,

### ~ 439.l et seq. 6 Chapter 127,, 142z-18. HISTORICALNOTES 1-JISTORICAL AND STATUTORY NOTES 1990 Pocket Part Historical and Statutory Notes P.A. 76-2045 consolidated the changes made by the multiple 1969 amendments. P.A. 77-131 inserted the fifth paragraph. The preamble to P.A. 77-131 read: "This Act to amend the 'MunicipalRetailers' OccupationTax Act' andthe 'Municipal Service Occupation Tax Act' expresses the intent ofthe General Assembly, and declares that intent to ha\'e been, since the inception ofthose Acts, thatpersons subject to the municipal retailers' occupation tax and Municipal Service OccupationTax may reimburse tl1emselves for their seller's or serviceman's tax liabilityunder such taxes by separately stating the amount ofsuch taxes as an additional charge."

P.A. 77~279 inserted the tenth paragraph. P.A. 77-1024 inserted the sixthparagraph: inserted, "andnot including an amount equal to the amount ofrefunds made during the second preceding calendar month by the Department on behalfofsuch municipality," in the third sentence ofthe eighth paragraph; and substituted "balance" for "amount" following shortly afterthe inserted clause in the same sentence. P.A. 77-1991, which incorporated the amendments made by P.A. 77-13 l, P.A. 77-279, P.A. 77-1024 inserted the words, "or State Comptroller" each time they appear; inserted the seventh paragraph; and inserted, in the eighth paragraph, the clause excluding funds used for refonds under the Act ofthe 77th General Assembly from amounts to be paid to the county.

Section 

### 2ofP.A. 77-1991 provided: "This amendatory Act is effectiveJuly I, 1972, or upon becoming a law, whicheverhappens later." As amendedby P.A. 77-1991 the tenth paragraph read: "For the purpose ofdete1111ining the local governmental unit whose tax is applicable, a retail sale, by a producer ofcoal or other mineral mined in Illinois, is a sale at retail at the place where the coat or other mineral mined in lllinois is extracted from8·11·1. Home Rufe Municipal Retailers' Occupation Tax Act, S.H.A. ch. 24 'IT 8-11-1

the earth. This paragraph does not apply to coal or othermineral when it is delivered or shipped by the sellerto the purchaser at apoint outside Illinois so that the sale is exempt under the Federal Constitution as a sale in interstate orforeign commerce."' An amendment ofthis paragraph by P.A. 77-2829, § 9, was excised from that Act underthe tenns ofsection 67, thereof. See note under ch. 23,**~;~** 2804 to 2807.

Fonnerly "Auditor of Public Accounts. or" appeared in conjunction with "State Comptrol!er," each time it appeared. P.A. 78-240 deleted those words. The same amendment substantially rewrote the tenth paragraph. Section 3 ofP.A. 78-240 provided: "This amendatory Act of

### J973 takes effect on the first day ofthe first month immediately following the month in which it becomes a law." The 1973 Rcvisory Act, P.A. 78-255, stated in section 61 that in each ofthe sections enumerated therein, amended by two or more Public Acts ofthe 77th General Assembly, the latest Public Act was based on and incorporated all prior amendments to that Section made by earlier Public Acts ofthe 77th General Assembly.

P.A. 78-1255 substituted ''State Comptroller·· for "Auditor ofPublic Accounts" throughout, and substituted "2%" for "4%'' in the eighth paragraph.

P.A. 78-1297, the 1974 Revisory Act, declared in its title that it related to "certain nonsubstantive revisions ofthe law to resoh-e differences among the seYeral forms ofcertain Sections amended by more than one Act ofthe 78th General Assembly"'.

P.A. 79-1078 added the fourteenth paragraph; and added the definition of"shopping center" in the penultimate paragraph. P.A. 80-1292 inserted, in the fifth sentence ofthe first paragraph, "andshall include exemption (d) therein unless the corporate authorities provide othenvise by ordinance)."'

P.A. 81-1379 in the fifth sentence substituted "exemptions (a- I) and (d)'' for ''exemption { d)". Art JV, § 1ofP.A. 81-1509 provided in part: ''This Article sha!l be known and may be cited as 'The 1980 State Government Reorganization Re\'isory Act'. "It is the intention of the General Assembly, pursuant to the 'Executive Reorganization Implementation Act', approved September22, 1979, to implement Executive OrderNumberThree (1979). filed March 30, 1979 and effective October !, 1979, [set fo11h at the beginning ofch. 127] involving the reorganization ofcertain agencies ofthe government ofthis state." Forprovisions ofP.A. 81-1509, Art. V relating to effective dates and supersedure, see note following ch. 8,**~** 37-26. Article I, § I ofP.A. 81-1550provided: "This Article shall be known and may be cited as the 2nd 1980 Combining Rcvisory Act. This A11icle proYides for the nonsubstantive revision or renumbering or repeal of Sections of Acts necessitated by the amendment, addition or repeal of Sections by two or more Public Acts ofthe 81 st General Assembly, through Public Act 81-1509, which multiple action was not resolved by one ofthe Acts affecting the particular Section."'

PA 82-683 inserted "(a-2), (a-3)" in the last sentence ofthe first paragraph. P.A. 82-1013, inserted "(f) and (g)" in the last sentence ofthe first paragraph. 

### (

### ( 8·11·1. Horne Rule Municipal Retailers' Occupation Tax Act, S.H.A. ch. 24 'IT 8-11·1

P.A. 82-1035 incorporated the amendments by P.A. 82-683 and P.A. 82-1013 and, in addition, in the last sentence ofthe first paragraph, folhwing "(a-3)", inserted a comma; in the first sentence ofthe sixth paragraph, substituted ·'order" for "'warrant"'; and in the last sentence ofthe eighth paragraph, substituted ··orders·· for "'warrants"'.

P.A. 83-1253, in the eighthparagraph, in the third sentence, inserted "'plus an amountthe Department deteimines is necessary to offset any amounts whichwere erroneouslypaid lo a differenttaxingbodf'; inserted ·'andnot including anyamountwhichthe Department detem1ines is necessary to offset any amounts which were payable to a different taxing body but were erroneously paid to the municipality"; and substituted the thirteenth through fifteenth paragraphs for a paragraph which read:

"'The Department ofRevenue must upon the request ofthe Municipal Clerk, CityCouncil or Village Board ofTrustees submit to acity. village or incoqmratedtown alist ofthose persons who are registeredwith the Deparh11cnt to pay Retailers' Occupation tax within that governmental unit. This list shall contain only the names ofpersons who haYe paid the tax and not the amount oftax paid by such person."

P.A. 83-1362, Art. 

## rn, the Third General Assembly CombiningRevisory Act, proYided in§ l: "'This Article provides for the nonsubstantive revision or renumbering or repeal of Sections of Acts necessitated by the amendment, addition or repeal ofSections by two or more Public Acts ofthe 82nd General Assembly, which multiple action was not resolvedby one ofthe Acts ofthe 82nd or 83rd Ge11ern! Assembly affecting the particular Section."'

For provisions ofP.A. 83-1362. Art. I,§ 1 relating to intent and Art. V, § 1 relating to effective date and nonaccclcration, see note following ch. 5,**~** 55.19.

P.A. 84-149, in the third sentence ofthe eighth paragraph, substituted ·'J.6%" for '"2%"; and in the second sentence ofthe fifteenth paragraph, substituted "January 1, 1985"' for "'the effective date ofthis amendatoryAct of 1984".

Section 2 ofP.A. 84-149, approved Aug. 12, 1985, provided: "'This Acttakes eITect upon its becoming a law." P.A. 84-940 insertedthe second, third and fourthparagraphs; and, inthe fifteenth paragraph,in the second sentence, substituted ''January l, 1985" for "'the effective date ofthis amendatory Act of 1984".

Section 8 ofP.A. 84-940, approved Sept. 25, 1985, provided: "This Act takes effect upon becoming a law." P.A. 84-1262, w'hich incorporated the amendment by P.A. 84-149 and P.A. 84-940, inserted the paragraph relating to an allocation in March !987 and each yearthereafter, to each municipality which received more than $500,000 in disbursements in the preceding calendar year.

Section 3 ofP.A. 84-1262, provided: "This Act takes effect January I, 1987."' Article ll ofP.A. 84-1308, the First 84th General Assembly Combining Revisory Act, provides for the nonsubstantiverevision or renumbering or repeal of Sections ofActs necessitated by the amendment, addition or repeal ofsections by two or more Public Acts of the 84th General Assembly, which multiple action was not resolved by one ofthe Acts ofthe 84th General Assembly affecting the particular Section and makes technical corrections in Acts amended by the 84th General Assembly.

Forprovisions ofP.A. 84-1308, Art. I,§ !, relating to intent and supersedure and Art. TV,§ 1, relating to effective dates and extension orrevival ofrepealed Acts. see Historical Note following ch. 5,

## -r 127.11.8-11·1. Home Rule Municipal Retailers' Occupation Tax Act, S.H.A. ch. 24 

## ,r 8-11-1

P.A. 84-1457, which incorporated the amendmentsbyP.A. 84-149 and P.A. 84-940, in the first sentence ofthe first paragraph. inserted "and, in municipalities with more than 130.000 but Jess than 2,000.000 inhabitants an additional tax of

### Ya of 1 % for expenditure on public infrastructure as defined in Section 8-11-1.2 ifapproved by referendum as providedin Section 8-11-1.1".

Section 2 ofP.A. 84-1457, certified Jan. 6, !987, provided: "ThisAct takes effect January 1, 1987:' Article ll ofP.A. 85-293. lhe Final 84th General Assembly Combining Revisory Act, provides forthe nonsubstantiverevision and renumbering ofSections ofActs which have been added or amended bymore than one Act ofthe 84th General Assembly and the rerepeal ofSections both amended and repealed by Acts ofthe 84th General Assembly.

Forprovisions ofP.A. 85-293, Art. I. 

### f 1, relating to intent and supersedure and Art. JV,§!, relating to effective dates and extension or re\'ival ofrepealed Acts, see Historical Note following ch. 5,

## i: 1212.1. P.A. 85-1135 rewrote the paragraph. Article I.§ I ofP.A. 85-1135. provides: "'It is the intent ofthe 85th General Assembly that: "(a) the abolition ofthe authority ofmunicipalities and counties to impose occupation and use taxes, and the corresponding concurrentincrease ofthe state rate ofsuch taxes with a corresponding distribution to such municipalities and countiespursuant to this amendatory Act of 1988, shall remain in full force and effect on apermanent basis;

"(b) there shall be no reduction orredistribution as to proportional amount ofsuch corresponding distribution received by such municipalities and counties except as expressly provider.I in this arnendatOI)' Act of 1988;

"'(c) there shall be no reduction ofthe rate orbase ofsuch taxes except as expressly provided in this amendatory Act of 1988; "(d)there sha[] be no limitation on the use ofmoniesrcceiYedbysuch municipalities and counties except as expresslyprovided in this amendatory Act of 1988;

"'{e) the distribution ofoccupation tax reYenues lo municipalities and counties shall remain on the basis ofpoint ofsale; "(f) tax revenues collected pursuant to the State use tax Acts on interstate transactions involving transfer oftangible personal property shall be distributed in accordance withthe formula establishedby this amendatory Act of 1988 for Stateuse taxes; and

"(g) repeal ofthe statutory authority ofmunicipalities and counties to impose local retailers' occupation taxes, use taxes, and service occupation taxes shall not be so construed as to impair the provisions ofany development, redevelopment, annexation, preannexation or other lawful agreement which describes or refers to receipts from any of such taxes, but, rather, any such description or reference to such taxes shall be given efTect as ifreference were made in such agreement to the replacement revenue for such abolished taxes received from the Local GoYernment Tax Fund, County and Mass Transit Tax Fund orLocal Government Distributi\'e Fund, as the case maybe." P.A. 85-1135, Aii. V, §§ I to 3, approved July 28, 1988, provided: "'§ !. This amendatory Act of 1988 shall not affect any right, remedy or liability, whether civil or criminal, which existed priorto the effective date hereof.

"§ 2. A home rnle municipality may enact ordinances imposing taxes pursuant to Sections 8-11- l, 8-1 1-5 and 8-11-6 ofthe Illinois Municipal Code afterJanuary 1, 1990, ifsuch ordinances do not take effect prior to September 1, 1990. 

### ((



### ( 8·11-1. Home Rule Municipal Retailers' Occupation Tax Act, S.H.A. ch. 24 

### 'ii 8-11-1

"§ 3. Articles I. IV and V take effect upon this Act becoming a law. Article III takes effect on the first day ofthe second calendarmonth after this Act becomes a law. Article II takes effect January I, 1990." P.A. 85-1409 included exemption of§§ 

### Ji and lj ofthe Retailers' Occupation Tax Act and included criteria under§ Ii of such Act.

Section 7 ofP.A. 85-1409, approYed Sept. 23, 1988, provided: "'This Act shall take effect July l, 1989.'' Article 1. §§ 1-1. l-2, Art. II, the Third 85th General Assembly Combining ReYismy Law, § 1-1 and Art. IV, § 4-1, ofP.A. 86-820. the Second 1989 Re\"isory Act, approved Sept. 7, 1989, provide: ''Sec. 1-1. This Act maybe cited as the Second 1989 Revisory Act.

··sec. 1-2. This Act is intended to reconcile nonsubstantive differences, resolve substantive conflicts that arise from multiple enactments, and make technical corrections and revisions in the !av,·.

''In this Act, the reference at the end ofeach amended Section indicates the sources in the Session Laws oflllinois that were used in the preparation ofthe text ofthat Section. The text ofthe Section included in this Act is intended to control over the conflicting Yersions found in the Public Acts included in the list ofsources, but not necessarily overconflicting \'ersions ofthe Sectionto be found in PublicActs not included in the list ofsources. The list ofsources is not a partofthe text ofthe Section.''

''Sec.1-1. ThisArticlerevises and, where appropriate, renumbers certain SectionsofActs whichhave been added or amended by more than one Act ofthe 85th General Assembly. Italso rerepea!s ce1iain Sections thathavebeenboth amended andrepealed 

### by Acts ofthe 85th General Assembly and, where successor Jaws have been enacted, incorporates the amendments into the successor laws. This Article also corrects errors, revises cross-references and deletes obsolete text in those Sections. Public Acts 85-1 through 85-1451 were considered in the preparation ofthis Article.''

"Sec. 4-1. This Act shall take effect upon becoming law. However, this Act does not accelerate the taking effect ofproYisions derived from any Public Actthathas an effecth·e date later than the date this Act takes effect, nor does this Actextend orrevive any Act otherwise repealed."

P.A. 86-528, inthe first paragraph, inserted"!i, lj", "5k, Sf' and following "6" deleted "(exceptthat creditmemoranda issued hereunder may not be used to discharge any State tax liability)"; and inserted the paragraph relating to distribution of the unobligated balance remaining in the Municipal Retailers' Occupation Tax Fund on Dec. 3J, 1989.

Art. 4, § 2 ofP.A. 86-928, approved Sept. 18, 1989, provided: ''Article 3 takes effectJanuary \, 1990." 1962 Main Voltune Historical and Statutory Notes Source. Laws 1941, vol. 2, p. 19, § 23~111, added by Laws 1951, p. 2017, § I; Laws 1955, p. 436, § I; Laws 1957. p. 

### 1530, § l; Laws 1959, p. 570, § l; Laws 1959, p. 1869, § I; SJ-I.A. ch. 24, § 23-111.

1961 Municipal Code. No substantive change. The 1961 amendment deleted, in the first paragraph, reference to §§ 5e and 5fand inserted reference to § § 5h and 5i ofthe Retailers' Occupation Tax Act. Act 1961, July 25, Laws 1961, p. 1876, §§ 2 and 3 provided:8-1i·1. Home Rule Municipal Retailers' Occupation Tax Act, S.H.A ch. 24 

### 'ff 8-11·1

"'Section 2. This amendatory Act shall be effectiw September 1, 1961, but shall not change the procedure for obtaining judgment in cases in which the Department ofRevenue has filed suit before September I, 1961, on a final assessment or on a signed return.

"Section 3. If, you any reason, this amendatory Act (orthe amendments to those Sections ofthe Retailers' Occupation Tax Act which it adopts through incorporation by reference) should be declared unconstitutional, the period from September I, 196l, to a date 6 months after such final adjudication ofinvalidity shall not be counted in computing anyperiodoflimitations which would otherwise apply to the exercise ofany right orthe employment ofany remedy available to the Depmtment ofRevenue.'"

1941-1960 Amendments. As enacted by Laws 1951. p. 2017, § I, the section provided; ··The corpomte authorities ofa municipality may impose a tax upon all persons engaged in the business of selling tangible personal properly at retail in the municipality at the rate ofnot to exceed one-halfofone per cent of98 per cent ofthe gross receipts from such sales made in the course ofsuch business. The municipal ordinance or resolution imposing such tax may provide for the assessment and collection ofcivi! penalties for the failure ofa tax payer to comply with the provisions ofsaid ordinance orresolution. The tax imposed by amunicipality pursuant to this Section and all civil penalties that may be assessed as an incident thereofshall be collected and enforced by the State Department of Revenue. The Department shall have full power to administer and enforcethis Section; to collect all taxes and penalties due hereunder; to dispose oftaxes and penalties so collected in the manner hereinafter provided, and to determine all rights to credit memoranda, arising on account ofthe erroneous payment oftax or penalty hereunder. In the administration of, and compliance with, this Section, the Department and persons who are subject to said Act shall have the same rights, remedies, p1iYileges, immunities. powers and duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions oftenns, and employ the same modes of procedure, as are prescribed in Sections 1, 2a, 2b. 3 (except as to the disposition oftaxes and penalties collected), 4, 5, 5a. 5b. 5c. 5d, 5e, Sf, 5g, 6, 6a, 6b. 6c, 7. 8, 9. 10, !I, 12 (except as to the venue ofhearings heldby the Department and as to the venue 

### I

ofproceedingsforjudicialreview in the Circuit or SuperiorCourts). 12

### Y2 and 13 ofthe Retailers' OccupationTax Act, approved { June 28, l933, as amended, as fully as ifprovisions contained in said Sections ofthe Retailers' Occupation Tax Act were set forth herein. Hearings conducted bythe Depm1ment hereunder shallbe held in the municipality on whose behalf the Department is administering this Section withrespect to the questions to be determined at such hearing, and proceedings forjudicial review shall be commenced on the Circuit or Superior Court ofthe county in which such municipality is situated. The Department shall forthwith pay overto the State Treasurer, ex-officio, as trustee. all taxes and penalties collected hereunder. On or before the Thi11ieth day ofeach calendar month, the Department shall notify the State Treasurer, in writing, to disburse stated sums ofmoney to named municipalities, said municipalities to be those from which retailers have paid taxes orpenalties hereunder to the Depai1ment during the preceding calendarmonth. The amount to be paid to each municipality shall be the amount (not including credit memoranda) collected hereunder during the preceding calendar month by the Department, less six per cent (6%) ofsuch amount, which sum shall be retained by the State Treasurer to cover the costs incurred by the Department in administering and enforcing the provisions ofthis Section, as provided herein, and said sum, so retainedby the State Treasurer, shall be paid by him into the General ReYenue Fund ofthe State Treasmy. Within ten (10) days after receipt, by the State Treasurer. ofthe disbursement notification, provided for herein to be givento the StateTreasurerby the Department, the State Treasurer shall make disbursements in accordance with the directions contained in suchnotification.

·'Nothing in this section shall be constmed to authorize a municipalityto impose a tax upon the privilege ofengaging in any business which underthe constitution ofthe United States may not be made the subject oftaxation by this State.

'"No ordinance providing for the imposition ofthe tax authorized under this Section shall be effective until the ordinance has been submittedto the electors ofthat municipality at ageneral election and approved by the majority ofthe electors votingupon that question. The question may be submitted at any general election held in that municipality not less than twenty nor more than ninety days, after the adoption ofan ordinance or resolution by the corporate authorities ofthat municipality, providing for the submission ofthe question ofauthorizing the imposition ofthe tax to the electors ofthat municipality and specifying the rate oftax to be imposed but not to exceed one halfofone per cent (0.5%) of98 per cent ofthe gross receipts from such sales { made in the course ofsuch business. An election held within the entire area included within the corporate limits ofa specified

### ( 8-11-1. Home Rule Municipal Retailers' Occupation Tax Act, S.H.A. ch. 24118-11-1 municipality at which officers ofthat municipality, or ofany township, school district. or park district are to be elected or at which the officers ofthe county, in which that municipality is located. orofthe State ofl!linois, are to be nomination orelected shall be a "general election·· within the meaning ofthis section.

"The election officers. who ha\'e charge ofthe preparationofthe ballots. the giving ofthe notices ofelection, and the counting, canvassing, andmaking of thereturns ofthe ballots, shall take all necessary steps and do all necessary sets to submitthe question ofthe imposition ofthe tax to a vote as herein proYidcd. They shall canrnss and certify the results ofthis election, as provided bylaw in other similar cases.

"The ballot to be used at this election shall be in substantially the folluwing form:
Shall the corporate authorn,~, of

....

(Insert name) Yes
be authorized to impose u

tax of

..

(Insert rate fixed by
onlinancc orrc,olu1ion)

upon persons engaged i11
the business ofsct!ing No tMgiblc personal properly al retail in such municipali1y?
"Ifa majority ofthe votes cast on lhe question are in favor ofauthorizing the imposition ofthe tax the corporate authorities may levy the tax at any time following the detem1ination and certification ofthe result ofthe election upon that question.

"The corporate authorities of any municipality which levies a tax authorized by this Section shall forthwith notify the Department ofRevenue in \\Titing ofthe levy ofsuch tax by such municipality whereupon the Department ofRevenue shall proceed to administer and enforce this Section onbehalfofsuchmunicipality."

Laws 1955. p. 436, § l, rewrote the section. Laws 1957, p. 2530, § !, changed, in the first paragraph, the date for notice for the disbursement of tax from 10th to 25th day ofeach calendarmonth.

Laws 1959, p. 570, § 1, modified the first paragraph by inserting the exception clause following the reference to § 6 ofthe Retailers Occupation Tax Act.8-11-i. Home Rule Municipal Retailers' Occupation Tax Act, S.H.A. ch. 24

### '1! 8-11-1

Laws 1959, p. 1869, § 1, modified the first paragraph by inserting the second exception clause fol!owing the reference to§ 3 ofthe Retailers' Occupation Tax Act, and by decreasing the amount allowed tlie department 

### for the administrative expenses from 6% to 4% ofthe amount collected.

Related Laws. SJ-LA. ch. 24, § 23-54.1, which was derived from Laws 1941, ,·ol. 2, 

### p. 19, § 23-54.1, added by Laws 1947, 

### p. 607, § l, and repealed 

### by Laws 1951, p. 2017, §2, provided 

### for municipal retailers' occupationtax. REFERENCES CROSS REFERENCES 1990 Pocket Part Cross References Business district redevelopment projects, tax increment allocation financing, see ch. 24, 111-74.4-Sa. County walercommissions, sec ch. 111/, ~: 254. Pledge offunds to De,·elopment Finance Authority, see ch. 48, •: 850.0?zl5. Refunds for payments ofretailers' occupation taxpaid on amount offederal automobile excise tax later refunded, see ch. 127.**~** 39dl. 196:?. Main Volume Cross References Dcpmiment ofrevenue, enforcement ofordinances imposed under this section, sec State Government, ch. 127, § 39b]. Effective date ofordinances, municipalities under commission fonn ofgovernment, see §4-5-21 ofthis chapter. Publication ofordinance imposing municipal retailers' occupation tax, necessity, see § 1-2-4 ofthis chapter. "Sellingprice" within use tax act, see Revenue, ch. 120, § 439.2. LAW 

### REVIEW COMMENTAlUES 1990 Pocket Part Law Review Commentaries Legislative de,·e!opments: Ilomerule taxation. 1973 Law Fomm 508. Municipal revenue powers in the context ofconstitutional home rule. Rubin G. Cohn, 1956, 51 N.W.L.Rcv. 27. Retailers' Occupation Tax Act and related tax laws. Willard lee, 1961 Law Fomm 614. State and local tax changes in 1965. 1965, 54 II!. BarJ. l 12. Survey ofIllinois law for 1954-1955. 1956, 34 Chicago-KentL.Rev. 107.

Licenses 5Ya, 6. 

### C.J.S. Licenses§ 

### 10.

In general 1/2. Collection oftaxes 5 Deficiencies 4

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### L!BR.A.RY REFERENCES 1962 Main Volume Library References



### ANNOTATIONS NOTES OF DECISIONS

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### ( 8-11-1. Home Rule Municipal Retailers' Occupation Tax Act S.HA ch. 24

### 'iI 8-11-1

Enforcement orcollection oftaxes 5 Legislative intent li4 Nonresident sellers 6 Refund oftaxes 2 Repeals I

................. Rolling stock exemption 3 ........... enterp

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#. Validity Municipalities, which contended that state officials' failure to credit them with interest income earned on municipal retailers' occupation tax receipts was unconstitutional, but which did not allege facts showing that officials were unconstimtionally levying taxes, had failed to allege sufficient facts to establish that officials had violated Constitution section (Const. Art. 9, § 1) gO\·crning state re,·enue power. Village ofPawnee v. Johnson, App. 4 Dist.1983, 74 lll.Dec. 481, J 19 lll.App.3d !64, 455 N.E.2d 1105, affimied 

### 83 Ill.Dec. 

### 219. 103 Jll.2d 411, 469 N.E.2d 1365.

This paragraph and other statutes which permit the state to keep two percent ofthe revenue it collects on behalfofcounties and municipalities which impose various local sales taxes do not violate the constitutional requirement ofuniform taxation on theorythat part oflocal tax re\'enue collected by the state is used to benefit areas in state which have not imposed similartaxes, where all taxpayers within municipality or county that does impose local sales tax are subject to the same taxes and the same collectionprocedures, and there is no misrepresentation ofthe purpose for whicl1 the tax revenues are being raised. Villageof Oak Lawn 

### v. Zagel, 1981. 51 Ill.Dec. 743, 96 lll.App.3d 254, 421 N.E.2d 251.

Constitution Art. 7, § 9, providing that "Fees shall not be based upon funds disbursed or collected, nor upon the levy or extension oftaxes" applies onlyto local units ofgovernment and does notprohibit state from withholding, as a fee a percentage ofthe funds it collects onbehalfofthe units oflocal government. and thus was not Yiolaied by this paragraph and other statutes pem1itting the state to keep hvo percent ofthe revenueit col!ects on behalfofcounties and municipalities whichimposevarious local sales taxes. Id.

Bracket schedule established by department ofrevenue 

### in use tax rule 

### is not void on themy that department lackedauthority to establish such a schedule. Johnson v. Marshal! Field & Co,, 1972, 8 Ill.App.3d937, 291 N.E.2d 310, affinned 57 Ill.2d 272, 312 N.E.2d 271.

Y.. Legislative intent Though legislature incorporated by reference the 1969 amendment ofthe Retailers' Occupation Tax Act (ch. 120, ._. 440 et seq.)requiring estimated tax payments by end ofmonth in which taxes were collected for most major taxpayers, into the other nine Sales and Use TaxActs (ch. 120,

### ii 439.1 et seq.) it appeared that legislaturehad done so inadvertently and that its intenti011 \vas only to amend the Retailers' Occupation Tax Act and the Use Tax Act (ch. 120, 

# r 439.1 et seq.) so that major taxpayer was required to make estimated deposits offunds on only those two taxes. Jewel Companies, Inc. v. Department ofRevenue, 1978, 15 Ill.Dec. 950, 58 Ill.App.3d 393, 374 l\'.E.2d 733. Inviewoffactthatretailerswere acting incompliancewith clearlegislativeintentthatburden ofmunicipalretailers' occupation tax be passed on to customers, retailers were not guilty ofdeceptive trade practice. Johnson v. Marshall Field & Co., 1974, 57 Ill.2d 272, 312 N.E.2d 271.

Amendment by P.A. 77-131 to Municipal Retailers' Occupation Tax Act, which allowed retailers to pass the burden ofthe tax to customers by separately stating such tax and which declared it had been legislative intent to give such authority could properlybe considered in determining earlier legislative intention but it was not conclusi\'e. Id.

' ·I·· •



## ,.,..,8·11·1. Home Rule Municipal Retailers' Occupation Tax Act, S.H.A. ch. 24 

### 'if 8-11·1
lnterpretations ofstatu(es by inYolved administratiYe bodies such as Department ofRevenue's rnles for adding ofMunicipal Retailers' OccupationTa, by retailers to sellingpriceand for detcnnining tax liability ofretailers, constitute aninfonned source for guidance when seeking to ascertain !egislatiw intention when statute was enacted. Id.

Distinction between retailers located within incorporated and unincorporated areas of county, within statutes authorizing imposition ofmunicipal retailers' occupationtax on the former and countyretailers' occupationtaxes onthe latter, is reasonable in that county provides many ofthe governmental serYices for retailers in unincorporated area which municipality provides for retailers within a municipality. Gilligan v. Korzen, 1974, 56 I11.2d 387, 308 N.E.2d 613, certiorari denied 95 S.Ct. 73. 419 U.S. 841, 42 L.Ed.2d 69. General Assembly'spassage of 1971 amendmentto Municipal Retailers' OccupationTaxAct, which allowspersons subject to this tax to reimburse themse!Yes for their seller's tax liability by separately stating suchtax as an additional charge, is reflective oflegislatiYe intent ofthe Act. Johnson\". Marshall Field & Co., 1972, 

### 8 111.App.3d 937, 291 N.E.2d 310, affirmed 57 Ill.2d 272, 312 N.E.2d 271.

(,2. In general A1unicipalities are entitled to be credited with interest income on monies held by State Treasurer, pursuant to this paragraph since these receipts are held by Treasurer merely as trustee for the municipalities. Village ofPawnee 

### v. Johnson, 1984. 83 Ill.Dec. 219. I03 Ill.2d 41 l, 469 N.E.2d 1365.

Municipalitieswere not entitled to interest on funds formerly held forthembyTreasurer, to the extentthat funds outof·which they sought reimbursement had already been transfen-ed to the General Revenue Fund, since any refund would then have to comeout ofGeneral Revenue Fund,which wouldbe an impem1issible moneyjudgmentagainst the State, as there was no longer an identifiable source from which municipalities could be reimbursed. Village ofPawnee v. Johnson, 1984, 83 Ill.Dec. 219, 103 I11.2d 411, 469 N.E.2d l365. Where gasoline company regularly operated three gasoline stations which sold at retail to the general public, and neither its sales at retail nor its wholesale sales to independent dealer who did not have resale number were insignificant in amount or irregular 

### in frequency, company could not avoid paying tax under Retailers' Occupation Tax Act (ch. 120,**~** 440 et seq.) or underMunicipal Retailers' OccupationTaxActch. 

### 14

### i: 8- l l- I on salestoindependentdealer concerningwhich companycould not produce a resale certificate. C\'cn ifcompanycould prove that the sales to the independent dealer\Vere for resale and were not taxable retail sales. Tri-America Oil Co.\·. Department ofRevenue, 1984. 80 Ill.Dec. 93. 102 Ill.2d 234. 464N.E.2d l076.

No wilfulness ormalice was alleged in municipalities' complaintarguingthat state officials' failure to credit them with interest income earned on municipal retailers' occupation tax receipts constituted breach offidnciary duty, and thus no cause ofaction existed againststate officials for theirpast failure to make such required interestpayments to municipalities. Vil!age ofPawnee v. Johnson, App. 4 Dist.]983. 74 lll.Dec. 481, 119 Ill.App.3d 164, 455 N.E.2d 

### I 105, affirn1ed 83 Ill.Dec. 219, 103 ll1.2d 411, 469 N.E.2d 1365.

Public Funds Act section (ch. 85.**~** 902) governing permitted irn·estments, when construed with Municipal Retailers' Occupation Tax Act (ch. 24, ~; 8-l l-l) and Public Deposits Act section (ch. 102, 

### i, 34) go\'eming investment. required state officials to credit interest income earned on occupation tax receipts, which they collected, invested and distributed, to municipalities, the ultimate owners ofreceipts. Village ofPawneev. Johnson, App. 4 Dist. 1983, 74 Ill.Dec. 481, I19 Il!.App.3d 164, 455 N.E.2d 1105, affinned 83 lll.Dec. 219, J03 Ill.2d 411, 469 N.E.2d 1365. Chapter 120, '1:441 c requiringthat a purchaserwho is areselleroftangiblepersonal propertyin sucha way that suchresales are not taxable under the Retailers' Occupation Tax Act (ch. 120,**~** 440 et seq.) apply for a resale certificate is applicable to those who sell mostly for resale but make some sales at retail. Tri-Ame1ica Oil Co. v. Department ofRevenue, App. l Dist.1983. 73 Ill.Dec. 257, 117 Ill.App.3d 774, 454 N.E.2d I, affim1ed 80 Ill.Dec. 93, 102 111.2d 234, 464 N:.E.2d I076. 

### (8-11-1. Home Rule Municipal Retailers' Occupation Tax Act, S.H.A. ch. 24 

### if 8-11-1 Chapter 120, ,: 44lc requiring a purchaser who is a reseller oftangible personal property in such a way that such resales are not taxable under the Retailers' Occupation Tax Act(,:440 et seq. 

### ofthis chapter) to apply for aresale certificate was applicable to retail and wholesale seller of gasoline; therefore, seller was liable for taxes under the Act on sales by seller to a station which was leased from sellerand operated as an independent dealer. where seller did not have the independent dealer's resale certificate. Tri-America Oil Co. v. Dept. ofRe,·enue. App. 

### 1 Dist.1983. 73 Ill.Dec. 257, 117 Ill.App.3d 774, 454 N.E.2d 

### 1, affirmed 80 lll.Dec. 93, 102 Ill.2d 234, 464 KE.2d 1076.

Under Retailers' Occupation Tax Act (ch. 120,,;; 440 et seq.) as it existed prior to January l, 1980, the self-imposed 15% gratuity charge added to not-for-profit clubs' members' charges 

### for food and beverage served in the clubs' restaurant and bar facilities was not subject to the tax, and. also, gratuity was not subject to tax under the Cities and Villages Act (this paragraph and subsequentparagraphs). Sangamo Club v. Department ofRevenue, App. 4 Dist. 1983, 71 Ill.Dec. 429. 115 Ill.App.3d 617, 450 N.E.2d 1308.

Under this paragraph and other statutes providing that two percent of revenue the state collects on behalf ofcounties and municipalities which impose various local sales taxes shall be retained bythe State Treasurer to cover the costs incurred. state can retain the entire two percent even ifthis amount exceeds the cost ofcollecting the local sales taxes. Village ofOak Lawn v. Zagel, 1981, 51 Ill.Dec. 743, 96 Jll.App.3d 254, 42 ! N.E.2d 251.

Retailers' OccupationTaxAct (ch. 120, ~· 440 et seq.), which imposes a tax on persons engaged in business ofselling tangible personal property at retail, did not apply to wholesaler which made no sales at retail. but made all sales to retail grocery stores for purposes ofresale, even though wholesaler did not document the resale character ofits individual sales, i.e

.. did not obtain the purchaser's registration number, his resale number, or a "ce1iificate ofresale"; it is not the sale ofpropertybut the business ofselling it for use or consumption which is the subject ofthe tax. Dearborn \:Vholesa!e Grocers, Inc. v. Whitler, 1980, 45 ill.Dec. 892, 82 Ill.2d 471, 413 N.E.2d 370. Actionwherein city andunincorporated association ofstate municipalitiessought declaratoryjudgmentthatbill, which reduced Department ofRevenue's servicechargefor collection ofmunicipal retailers' occupationtaxes and municipal service occupation taxes from four to two percent oftaxes collected, became effective on date governor's veto was overridden and sought to have Director ofDepartment ofRevenue. state treasurer and state comptroller ordered to refond excess ser,ice charge to plaintiff was not action against state 1.vhich could only have been brought in the court ofclaims. City ofSpringfield v. Allphin, 1978, 23 Ill.Dec. 516, 74 Jll.2d I

### J7, 384N.E.2<l 310.

Effective date of public act which reduced Depaitment of Revenue's service charge for collection of municipal retailers' occupation taxes and municipal service occupation taxes from four to two percent oftaxes collected would be day on which second house overrode the governor's veto, rather than on the following July 1st. Id.

Ch. 127**~** 801 which prevents state from beingmade partyin any court except as provided in CourtofClaims Act, did not bar suit in which plaintiffs soughtdeclaratoryjudgmentthatbill reducing Department ofRevenue's service chargefor collection of municipal retailers' occupation taxes and municipal service occupationtaxes became effective on date veto ,vas overridden and sought a refund ofexcess service charge, in light offact that state is not considered a party when suit is brought against slate officer who is alleged to be enforcing unconstitutional statute or proceeding in violation oflaw. City ofSpringfield v. Allphin. 1977, 8 Il!.Dec. l I, 50 Ill.App,3d44, 365 N.E.2d 249, modified on other grounds 23 Ill.Dec. 516, 74 111.2d 117, 384N.E.2d 310. Fact that pmtion ofservice charge, which was in excess ofthe amount that Department ofRevenue was entitled to charge for collectingmunicipalretailers' occupationtaxes andmunicipal service occupationtaxes for ce1iain plaintiffs, hadbee11 deposited in general revenue fund ratherthan segregated did not preclude a refund ofthe excess service charge to plaintiffs. Id. Where only explanationofDepartment ofRevenue's correction oftaxpayer's retailers' occupationtax retums wastestimony of auditor that correctedreh1ms were based on computerprintoutbased upon taxpayer's salestax returns, monthly filing ofrch1rns, and receipts, reviewing court could not determine whether Department had made corrections according to its "bestjudgment



### rl":·.t8-11-i. Home Rule Municipal Retal!ers' Occupation Tax Act. S.H.A. ch. 24 

### 'ff 8·11·1

and infonnation" and without violating taxpayer's right to due process, and thus cause would be remanded. Grand Liquor Co. Inc. v. Department ofRevenue, 1976, 36 lll.App.3d 277, 343 N.E.2d 555. Retailer had authorityto pass on burden oftax imposedunderMunicipal Retailers' OccupationTax Actprior to amendmentby PA 77-131 which explicitlygaveretailers this authority. Johnson v. Marshal! Field & Co

.. 1974, 57 Ill.2d272, 312 N.E.2d 271.

Where retailers were not obligated to pay sales taxes O\'er to state until payment from creditpurchaserwas received by them, state did nol extend credit to retailers, in violation ofprovision ofConst. Art. 8, § 1, that public funds shall be used for only public purposes, by allowing retailers to include sales taxes in cash sale price ofgoods to which finance charge was applied. Rose v. Sears, Roebuck & Co., 1973, 12 ll!.App.3d 929, 299 N.E.2d95. Retailers ofconsumergoods are not obligatedto pay overthe amount ofsales taxes until they are collectedfrom the purchaser. Id. Gsers ofcigarettes purchased from state retailers arc subject to the cigarette use tax and do not merelybear economic burden ofcigarette retailers' privilege tax: cigarette use tax does not apply only to out~of-state purchases. Dick's Vending Service, Inc. Y. Department ofRevenue, 1972, 53 ll1.2d 375, 293 N.E.2d 129.

Portion ofgross receipts representing collection ofcigarette use tax was not ·'consideration" received by retailer for sale of cigarettes for purposes ofcomputing occupation tax and retailer was entitled to credit for payments ofoccupation tax based on inclusion ofcigarette use tax in gross receipts. Id.

In view of fact that retailers were acting in compliance with use tax rnle set forth by department of revenue when they reimbursed themselves for municipal retailers' occupation tax they were required to payby separately stating amount oftax as an additional charge in combinationwith the use tax, which they were required to collect. and in light ofUniform Deceptive Trade Practices Act (ch. J21 

### :Y,, 

### f 314) providing that the Act docs not apply to conduct in compliance with orders or rules administered by a slate or local governmental agency. retailers were nol perfom1ing a deceptive trade practice. Johnson v. Marshall Field & Co., 1972, 8 Ill.App.3d 937, 291 N.E.2d 310, affim1ed 57 Il!.2d 272, 312 N.E.2d 271. In light offad that purchasers oftangible persona! property admittedly paid municipal retailers' occupation tax when it was charged as a condition ofsale, retailers had a contractual right to reimburse themselves for tax liability imposed on them by the municipal retailers' occupation tax. Id.

Where this paragraph and other Use and Occupation Tax Acts did not provide for taxation of national banks and mies of DepartmentofRevenue made it clearthat nationalbanks were not subjectto taxes imposed by those actsfortheirpurchase and use oftangible personal property, legal incidence ofthose taxes was not imposed on national banks in violation ofthe limited authority to tax national banks gh·en to the states under 12 U.S.C.A. 

### § 548 even ifsuppliers oftangible personal property did in fact pass such taxes on to banks in the form ofa price increase. First N"at. Bank ofMaywood v. Jones, 1971, 48 Il!.2d 282. 269 KE.2d 494.

'.Vfotion to vacatejudgment which affirmed assessment ofRetailers' Occupation Tax, ch. 120,,:440 et seq.. and Municipal Retailers' Occupation Tax and to remand cause to Department ofRevenue made more than thirty days after originaljudgment and more than thirty days following filing ofmandate following reversal must be deemed to have been broughtunder ch. 11 0, 

### ,1 72, authorizing relieffromjudgments. Shuman v. Department ofRevenue, !967, 38 I11.2d 571, 232 N.E.2d 732.

Signature ofdirector ofrevenue was unnecessary to make final the purportedly final assessments by department ofrevenue under Retailers' OccupationTax (ch. 120,**~**440 et seq.) and MunicipalRetailers' OccupationTax Acts. Schumanv. Department ofRevenue, 1966, 35 Ill.2d 425, 220 N".E.2d 430, appeal afterremand 232 N.E.2d 732, 38 Ill.2d 571.

!957 Amendment ofch. 120,**~**440, purporting to bring within Retailers' Occupation Tax Act those whoengagein business of repairing tangible personalty for otherswas unconstitutional, and, therefore, assessment oftax agai11strailroadfordollar amount 

### (

### ( 8-11-1. Home Rule Municipal Retailers' Occupation Tax Act, S.HA ch. 24 ,I 8-11-1

ofrepairs made byrailroad on railroad cars owned by other railroads was properly set aside. Wabash R. Co. v. Department of Ren:nue, 1963. 28 IIL:1.d 128, 191 N.E.2d 244. Where physical delivery ofautomobiles sold by dealer located in .city to nonresidents occurredjust across boundmy line of city, but all other necessary incidents to sales transactions occurred inside city. sales were incident ofdealer's businessthatwas being conducted in city and were subject to city retailers' occupation tax imposed upon act ofengaging in business ofselling tangible personal property at retail in municipality. Metnick \'. Department ofRevenue. 1963, 28 Ill.2d 180, 190 N.E.2d 750.

l. Repeals Fact that Laws 1951, p. 927. § 1, providing for investigative powers in cities ofover 500,000 population, bore same section number as later enacted Laws 1951, p. 201 i, § ],providing for municipal retailers' occupation tax, did not warrant conclusion that the later enactment repealed the fom1er by implication, since there was no clear repugnance between the two acts in that !hey dealt with entirely unrelated subject matter. Du Bois v. Gibbons. 1954. 2 Ill.2d 392, 1 l 8 N.E.2d 295. 2. Refund oftaxes Automobile businesses' claims for refund for various Retailers Occupation Tax Act [ch. 120,-; 440 et seq.] and Municipal Retailers Occupation Act [ch. 24. ~: 8-11-1] taxes which they contended to have paid by mistake were properly denied, due to failure ofallegation ofclaims to be more specific. Illini i\fotor Co. v. Illinois Dept. ofRevenue, App. 4 Dist.I985, 94 Ill.Dec. 448, 139 Ill.App.3d 411, 488 N.E.2d 274.

Department of Revenue's denial of exemption from Retailers Occupation Tax Act [ch. 120,**~** 440 et seq.] and Municipal Retailers Occupation Tax Act [ch. 24, "] 8-1 l-l] for sales ofautomobiles because theywere for exempt charitable purposes was proper. in that documentation ofsales for which charitable exemption was claimed was insufficient. Illini Motor Co. v. Illinois Dept. ofRevenue, App. 4 Dist.1985, 94 lll.Dec. 448, 139 Ill.App.3d 441, 488 N.E.2d 274. Department ofReYenuc's determination that taxpayer was not entitled to tax refund by virtue of''rolling stock" exemption on sale ofinstrnment known as ''LeTro Porter" was adequately suppmted by record, as porter, which functioned much like a forklift, was not a transportation vehicle such as railroad car sernitmck, it did not transport freight from one geographical location to another. but merely moved freight within confines ofrail yard, and it was not propetty which in its ordinary use is taken from one part ofthe line to another, nor goods which are mobile and which are ofa type normally used in more lhan onejurisdiction. LeTourneau R.R. Services, Inc. v. Department ofRevenue, App. 4 Dis!.l985, 90 Ill.Dec. 64, 134 l!I.App.3d 638, 481 N.E.2d 864.

Municipalities were unable to recover for past sums ofinterest income earned on municipal retailers' occupation lax receipts which had already been placed by state treasurer in general revenue fund, but award ofundistributed and future interest was appropriatebecause such award did not result in moneyjudgment against state. Village ofPawnee v. Johnson, App. 4Dist.1983. 74111.Dec. 481, 119 Jll.AppJd 164,455 N.E.2d 1105, affirmed 83 Jll.Dec. 219, 103 Ill.2d 411, 469 N.E.2d 1365.

Automobile dealer who added amount ofmunicipal retailer's occupation taxes to price ofautomobile sold by it so as to pass burden oftax on to vendecs and which did not unconditionally refund amount oftaxes to vendees though il offered to do so in event refund was granted was not entitled to refund oferroneously paid taxes. Chuck Thiel Auto Sales, Inc. v. Isaacs, 1962, 24 Ill.2d 302, 181 N.E.2d 149.

3. Rolling stock exemption Cranes sold to interstate carrier were not included underrolling stock exemption ofretailers' occupation tax [S.1-LA. ch. 24,**~** 8-11-1; ch. 120,**~** 44l c], where cranes did not operate on railroad tracks and were not attached to railroad cars or locomotives, \Vere not railroad containers or trailers and were not loaded on railroad cars, and did not actually transport goods but, rather, onlytransferred trailers on and offrailroad cars. Mi-Jack Products Inc. v. Depmtment ofRevenue, App. I Dist.] 985, 91 Ill.Dec. 434, !36 Ill.App.3d 72!, 483 N.E.2d 920.8-11-1. Home Rule Municipal Retailers' Occupation Tax Act, S.H.A. ch. 24

### 'TI 8-11-1

4. Deficiencies Evidence regarding gross sales for one month at one oftaxpayers' seven fumiture stores supported Department ofRevenue's assessment oftax deficiencies under this act, in absence ofevidence regarding gross sales at the other stores. Smith v. Dept. of Revenue, App. 5 Dist.1986, 97 Ill.Dec. 846, 143 lll.App.3d 607, 493 N.E.2d 653.

Department ofRevenue's assessment oftax deficiencies arising from three taxpayers' alleged ownership ofse\·en furniture stores were valid even without evidence that two ofthe taxpayers actually owned the stores, where taxpayers both received notices ofliability and notices ofadministrative hearing, but failed to appear, and taxpayers' attorney raised no objection and adduced no evidence regarding taxpayers' tax liability. Smith v. Dept. of Revenue, App. 5 Dist.1986, 97 Ill.Dec. 846, 143 lll.App.3d 607, 493 N.E.2d 653.

5. Enforcement or collection oftaxes Municipality did not have right to bring action against retailer to recover sales taxes and fines allegedly due under this act. Village ofNiles v. K-Mart Corp., App. 1Dist.1987, 110 Ill.Dec. 526, 158 Ill.App.3d 

### 521. 5! 1N.E.2<l 703.

6. Nonresident sellers Regulations pro\'iding for imposition ofretailers' occupational taxes on out-of-state sellers who deliver goods from one spot in Illinois to another spot in Illinois pursuant to a sale to Illinois buyer do not violate the commerce clause. Chemed Corp., Inc. v. State, App. 4 Dist.1989, 134 Ill.Dec. 313, 186 lll.App.3d 

### 402, 542 N.E.2d 492.

Department ofRevenue regulations governing imposition ofretail occupation taxes, under which the place where title passes can be a controlling factor in some situations but may be insignificant in other situations, are not unreasonable, arbitrary or capricious nor void foryagucness. Chemed Corp., Inc. v. State, App. 4 Dist.1989, 134 l!l.Dec. 313, 186111.AppJd 402, 542 ( N.E.2d492.

Out-of-state retailer which warehoused goods in Illinois and subsequently sold and delivered those goods within the city and countywhere theywere stored was engaged in the business ofretail selling forpurposes ofthe municipal retailers' occupational tax and the regional transit authority retailers' occupational tax \\.'ith respect to those sales. Chemed Corp., Inc. v. State, App. 4 Dist. I989, 134 Ill.Dec. 313, 186 Ill.App.3d 402, 542 N.E.2d 492.

Regulations imposing municipal retailers' occupational tax and regional transit authorityretailers' occupational tax on out-of. state sellers which solicit orders and deliver goods from storage facilities within the state are within the scope of the taxing statutes [ch. 24, 

### i: 8-11-J and ch. 111 #,,; 704.03]. Chemed Corp., Inc. v. State, App. 4 Dist.1989, 134 Ill.Dec. 313, 186 IILApp.3d 402, 542 N.E.2d 492.5/8-11-1. Home Rule Municipal Retailers' Occupation Tax Act, JL ST CH 65 § 518-11-1



### ( ,vest's Smith-Hurd Illinois Compiled StatutesAnnotated Chapter

### 65. 

### Municipalities

Act 5. 

### IllinoisMunicipal Code (Refs & 

### Annos)

Article 8. Finance

Dhision 

### 11. Certain RewnueTaxes 65 

### ILCS 5/8-11-1 

### Formerlycited as IL ST CH 24 "iS-11-1 5/8-11-1. Home Rule 

### 11unicipal Retailers' Occupation TaxAct 

### Effectiw: July31, 

### 2015 Currentness
§ 8-11-!. Home Rule Municipal Retailers' Occupation Tax Act. The corporate authorities of a home mle municipality may impose a tax upon all persons engaged in the business of se!ling tangible personal property. other U1an an item oftangible persona! property titled orregistered with an agency ofthis State's government, at retail in the municipality on the gross receipts from these sales made in the course ofsuch business. Ifimposed, the tax shall only be imposed in 1/4% increments. On and after September I, 1991. this additional tax may not be imposed on the sales offood for human consumption that is to be consumed offthe premises where it is sold (other than alcoholic beverages, soft drinks and food that has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances and insulin, urine testing materials. syringes and needles used bydiabetics. The tax imposed by a home rnle municipalityunderthis Sectionand all civil penalties that maybe assessed as an incident ofthe tax shall be collected and enforcedby the State DepartmentofRevenue. The certificate ofregistration that is issued by the Department to a retailer under the Retailers' Occupation Tax Act I shal! pem1it the retailer to engage in a business that is taxable under any ordinance or resolution enacted pursuant to this Section without registering separately with the Department under such ordinance or resolution or under this Section. The Department shall have full power to administer andenforce this Section; to collect all taxes and penalties due hereunder; to dispose oftaxes and penalties so collectedin the mannerhereinafterprovided; and to detem1ine all rights to creditmemoranda arising on account of the erroneous payment oftax orpenaltyhereunder. In the administration of, and compliance with, this Section the Department and persons who are subjectto this Section shall have the same rights, remedies,privileges, immunities,powers and duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions oftem1s, and employ the same modes of procedure, as areprescribedin Sections l, Ia, 1 d, le, 1 f, Ii, lj, lk, Im, In, 2 through 2-65 2 {in respect to all provisions therein other than the State rate oftax), 2c, 3 3 (except as to the disposition oftaxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, Sf, 5g, 5h, Si, 5j, 5k, 5/, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, I I, 12 and 13 ofthe Retailers' Occupation Tax Act4 and Section 3-7 of the Unifom1 Penalty and InterestAct, 5 as fully as ifthose prO\·isions were set forth herein.
No tax may be imposedby a home rule municipality under this Section unless the municipality also imposes a tax at the same rate under Section 8-11-5 ofthis Act.
Persons subject lo any tax imposed under the authority granted in this Section may reimburse themselves for their seller's tax liabilityhereunderbyseparately statin_g that tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax which sellers are required lo collect under the Use Tax Act, 6 pursuant to such bracket schedules as the Department may prescribe. Whenever the Department determines that a refund should be made underthis Section to a claimant instead ofissuing a credit memorandum, the Department shall notifythe State Comptroller, who shall cause the orderto be drawn forthe amountspecified5!8-11-1. Home Rule Municipal Retailers' Occupation Tax Act. IL ST CH 65 § 518-11-1



### and to the person named in the notification from the Department. The refond shall be paid by the State Treasurer out ofthe home rule municipal retailers' occupation tax fund. The Department shall immediately pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected hereunder. As soon as possible after the first day of each month, beginning January l, 2011, upon certification of the Department of Revenue. the Comptroller shall ordertransfetTed, and the Treasurer shall transfer, to the STAR Bonds Revenue Fund the local sales tax increment as defined inthe Jnno\'ation Development and Economy Act, collectedunderthis Sectionduring the second preceding calendar month for sales ,vithin a STARbond district. After the monthly transfer to the STAR Bonds ReYenuc Fund. on or before the 25th day of each calendar month. the Depariment shall prepare and certify to the Comptroller the disbursement ofstated smns ofmoney to named municipalities, the municipalities to be those from which retailers have paid taxes or penallies hereunder to the Department during the second preceding calendar month. The amount to be paid to each municipality shall be the amount (not including credit memoranda) collected hereunderduring the second preceding calendarmonth bythe Departmentplus an amount the Deparimentdetern1ines is necessary to offset any amounts that were erroneously paidto a different taxing body, and not including an amount equal to the amount ofrefi.mds made during the secondprecedingcalendarmonthby the Department onbehalfofsuchmunicipality, and not including any amount that the Depariment determines is necessary to offset any amounts that were payable to a different taxing body but were e1Toneously paid to the municipality, and not including any amounts that are transferred to the STAR Bonds Revenue Fund. Within 10 days after receipt by the Comptroller ofthe disbursement ceriification to the municipalities provided for in this Section to be given to the Comptrollerby the Department, the Comptroller shall cause the orders to be drawn for the respectiYe amounts in accordance with the directions contained in the ceriification.
In addition to the disbursement required by the preceding paragraph and in order to mitigate delays caused by distribution ( procedures, an a!location shall, ifrequested, be made within 10 days afterJanuary 14, 1991. and in November of 1991 and each year thereafter, to each municipality that received more than S500,000 during the precedingfiscal year, (July I through June 30) ,vhethcrcollectedbythe municipality or disbursed by the Department as required by this Section. Within IO days after January 14, 1991, participating municipalities shall notify the Department in writing oftheir intent to participate. In addition, for the initial distribution, pm1icipating municipalities shall certify to the Depariment the amounts cotlected by the municipality for each month under its home rule occupation and service occupation tax during the pe1iod hlly I, l989 through June 30, 1990. The allocation within 10 days after January !4. 1991, shall be in an amount equal to the monthly average ofthese amounts, excluding the 2 months ofhighest receipts. The monthly average for the period ofJuly 1, 1990 through June 30, 1991 will be detennined as follows: the amounts collected by the municipality under its home mle occupation and service occupation tax during the period ofJuly 1, 1990 through September 30, 1990, plus amounts co!lected by the Depmiment and paid to such municipality through June 30. 1991, excluding the 2 months ofhighest receipts. The monthly average for each subsequent period ofJuly I through June 30 shall be an amount equal to the monthly distribution made to each such municipality under the preceding paragraph during this period. excluding the 2 months ofhighest receipts. The distribution made in NoYember 1991 and each year thereafter under this paragraph and the preceding paragraph shall be reduced by the amount allocated and disbursed under this paragraph in the preceding period ofJuly I through June 30. The Department shall prepare and certify to the Comptrollerfor disbursement the allocations made in accordance with this paragraph.
For the purpose ofdetermining the local governmental unit whose tax is applicable, a retail sale bya producerofcoal or other mineral mined in Illinois is a sale at retail at the place where the coal or other mineral mined in I!linois is extracted from the earih. This paragraph does not apply to coal or other mineral when it is delivered or shipped by the seller to the purchaser at a point outside Illinois so that the sale is exempt under the United States Constitution as a sale in interstate or foreign commerce. Nothing in this Section shall be construed to authorize a municipality to impose a tax upon the privilege ofengaging in any business which under the Constitution ofthe lJnited States maynot be made the subject oftaxation by this State.

## ( 5/8·11 ·1. Home Rule Municipal Retailers' Occupation Tax Act, IL ST CH 65 § 5/8·11·1

An ordinance orresolution imposing ordiscontinuing a tax hereunderoreffecting a change in the rate thereofshall be adopted and acertifiedcopythereoffiledwith the Departmenton orbeforethe first day ofJune,whereupon the Department shall proceed to administer andenforcethis Section as ofthefirst day ofSeptembernext following the adoption and filing. Beginning .January 1, 1992, an ordinance orresolution imposing ordiscontinuing the tax hereunder oreffecting a changeintherate thereofshall be adopted and ace1tified copythereoffiled withtheDepartmenton orbeforethe first day ofJuly, whereupontheDepartment sha[I proceedto administer and enforce this Sectionas ofthe first day ofOctobernext following such adoption and filing. Beginning January I, 1993, an ordinanceorresolution imposing ordiscontinuingthe tax hereunder oreffectinga change intherate thereof shall be adopted and a certified copy thereoffiled with the Department on or before the first day ofOctober, whereupon the Department shall proceed to administer and enforce this Section as ofthe first day ofJanuary next following the adoption and filing. However, a municipality located in a countywith a population inexcess of3,000,000 thatelectedto become a home mle unit at the general primal)'election in 1994 mayadopt an ordinance orresolution imposing the tax underthis Section and file a certified copy ofthe ordinance orresolution with the Departmenton or beforeJuly 

### 1, 1994. TheDepartment shall then proceed to administer and enforce this Section as ofOctober!, 1994. Beginning Aprill, 1998, an ordinance or resolution imposing or discontinuing the tax hereunder oreffecting a change in the rate thereofshall either (i) be adopted and a certified copy thereof filed with the Departmentonorbefore the first day ofApril. whereuponthe Departme:nt shall proceedto administerandenforce this Section as ofthe first dayofJulynext following the adoption and filing; or(ii) be adopted and a certified copy thereoffiled \,·ith the Department on orbefore the first day ofOctober, whereupon the Depaitment shall proceed to administer and enforce this Section as ofthe first day ofJanuary nextfo!IO\ving the adoption and filing. \Vhen certifying the amount ofa monthly disbursement to a municipalityunderthis Section, the Department shall increase or decreasethe amount byan amountnecessary to offsetany misallocation ofprevious disbursements. Theoffset amount shallbe the amount erroneously disbursed within the previous 6 months from the time a misallocation is disco\'ered. Any unobligated balance remaining in the Municipal Retailers' Occupation Tax Fund on December 31, !989. which fund was abolished by Public Act 85-1135, and 

### all receipts ofmunicipal tax as a result ofaudits ofliability periods prior to January 

### I, 1990, shall be paid into the Local Govemment Tax Fund for distribution as providedbythis Sectionpriorto the enactment of Public Act 85-1135. All receipts ofmunicipal tax as a result ofan assessment not arising from an audit, for liability periods priorto January 1, 1990, shallbe paid into the Local Government Tax Fundfor distributionbefore July 1, 1990, as providedby this Section prior to the enactment ofPublic Act 85-1135; and on and after July l, 1990, all such receipts shall be distributed
as provided in Section 6z-18 ofthe State finance Act. 7
As used in this Section, "municipal" and "municipality" means a city, village or incorporated town, including an incorporated town that has superseded a civil township.
This Section shall be known and may be cited as the Home Rule 11unicipal Retailers' Occupation 

### Tax Acl.

Credits Laws 1961, p. 576, § 8-11-1, eff. July 1, 1961. Amended by Laws 1961,p. 1876, § 1 eff. July 25, 1961; Laws 1963, p. 54. § 1, eff. March 8, 1963; Laws !963, p. 1684, 

### § 1, eff. July 16, 1963; Laws 1963,p. 1688, § \, eff. July 16, 1963; Laws 1965, p. 66, § l, eff. July I, 1965; Laws 1965. p. 374, § 1, eff. July I, 1965; Laws 1965, p. 398, § I, eff. July 1, 1965: Laws 1967, p. 1109, § 1, eff. July I, 1967; Laws 1967, p. 2960, § 1, eff. Aug. 14, 1967; Laws 1968, p. 507, § 1, eff. July I, !969; P.A. 76-340, § 1, eff. July 1, 1969; P.A. 76-1889, § 1, eff. Oct. 10, 1969; P.A. 76-2045, § 1, eff. July 1, 1970; P.A. 77-13!, § 1, eff. July I, 1971; P.A. 77-279, § \, eff. July 14, 1971; P.A. 77-1024, § I, eff. Aug. 17, 1971; P.A. 77-1991, § I, eff. July 10, 1972; P.A. 78-240, § 1, eff. Sept. I, 1973; P.A. 78-255, § 61, eff. Oct. I, 1973; P.A. 78-592, § 15, eff. Oct. I, 1973; P.A. 78-1255, § I, cff. Dec. 5, 1974; P.A. 78-1297, §6, eff. March 4, 1975; P.A. 79-1078, § I, eff. Oct. 1, 1975; P.A. 80-1292, § 5, eff. Jan. 

### J, 1979; P.A. 81-1379, § 5, eff. Aug. 12, !980; P.A. 81-1509, Art. IV,§ 34,eff. Sept. 26, l980; P.A. 81-1550,Art. l, § 9, eff. Jan. 8, 1981; P.A. 82-683, § 5, eff. Nov. 12, 1981; P.A. 82-1013, 

### § 5, eff. Sept. 17, 1982; P.A. 82-1035, Art. II,§ I, eff. Dec. 22,5.18-11-1. Home Rule Municipal Retailers' Occupation Tax Act. !L ST CH 65 § 518-11-1

J982: P.A. 83-1253, § 1, eff. Jan. 1. 1985: P.A. 83-1362. A11. llI. § 3, eff. Sept. 11, 1984: P.A. 84-149. § I. eff. Aug. 12. 1985: P.A. 84-940. § 1, eff. Sept. 25, 1985: P.A. 84-1262, § I. eff. Jan. l, 1987: P.A. 84-1308, A11. ll. § 30, eff. Aug. 25, 1986; P.A. 84-1457, § \, eff. Jan. 6, 1987: P.A. 85-293, Art. ii,§ 4. eff. Sept. 8. 1987; P.A. 85-1135. Art. 11. § 

### 1. dl Jan. I. !990: P.A. 85-1409. § I. cff. 

### July I, 1989: P.A. ti6-8.::'0, Art. 11. § 

### 2-2. eff Sept. 7. 1989: 

### P.A. 86-928. Art. 3. *Leff.Jun. l. 1990: 

### P.A. 86- l475, Art. 5. § 5-6, eff. Jan. l0. 199I; P.A. 86-1481, Art. 3. § l. eff Jan. l4. 1991; P.A. 87-21J5. Art. 2. §2-L eff. July J, 1992; P.A. 87-205, Art. 4, § 4-1. eff. Jan. l, !994; P.A. 87-435. Arl. 2. 

### f 2-5. eff. Sept. 10, 1991: P.A. 87-895. Art. 2. § 2-14. eff Aug. 14. 1992; P.A. 88-603, § 5. eff. Sept. I. 1994; P.A. 90-689. § 10.eff.July 31, [998. Re-enacted by P.A. 91-51, § 150, eff. June 30. 1999. Amended by P.A. 96-939, § 70. eff June 24. 20

### J0; P.A. 99-217, § 25. eff. July 31. 20l5. 

### Formerly!ll.Rev.Stat.1991, ch. 24.**~** 8-11-1.

Notes ofDecisions (46)

Footnotes 35 ILCS 12\l l et~cq. 2 J5 ILCS 120 1, 120 la.120 ld, 1'.:'0. lc. 1'.:'0 IL 1'.:'0 li. 120 lj. l.:'O·Jk, 120 lm, 1.20 In, 110·2 to 120 2-65. 

### 3 35 JLCS 120 2c and 120'J. 4 JS fLCS l.:'O 4, 120 5. )20 Sa. 120 5b. l.:'U 5(:, DJ 5d. 120 Sc. l.:'O Sf, l.:'O 5g, 12il Sh, 11ll'5i. !.'!0'5.i. 120 5k. 120 5/, 120 6. 120 6a, 120 Ob. 120 6~. 120 7, !20 8, 120 9. J:IJ JO. L:O 11. 120 12 and 120 13. 

### 5 ~5 ILCS 735 3-7. 6 JS lLCS l05. J et ,eq. 7 JO JLCS 105"67-18. 65 1.L.C.S. 5/8-11-1, IL ST Cl-I 65 § 5/8-11-1 Current through P.A. 99-487 ofthe 2015 Reg. Sess. 

### (5/8-11-5. Home Rule Municipal Service Occupation Tax Act, IL ST CH 65 § 5/8-11-5



### West's Smith-Hurd Illinois Compiled StatutesAnnotated Chapter 65. Municipalities

Act5. 

### Illinois Municipal Code (Refs & 

### Annos)

Article 8. 

### Finance Dhision 11. 

### Certain ReYenue Taxes 

### 65 ILCS 5/8-11-5 

### Formerlycitedas IL ST CH 24 ~-11-5 

### 5/8-11-5. HomeRule ~1unicipal Serdce Occupation TaxAct 

### Effective: June 24, 2010 Currentness**~** 8-

### J1-5. Home Rule Municipal Service OccupationTax Act. The corporateauthorities ofahomemlemunicipalitymayimpose a taxupon all persons engaged, in suchmunicipality, in thebusiness ofmaking sales ofservice atthe same rate oftax imposed pursuant to Section 8-11-1, ofthe selling price ofall tangible personal property transferred by such servicemen either in the form oftangible personal property or in the form ofreal estate as an incident to a sale ofservice. 

### Ifimposed, such tax shall only be imposed in 

### Y4 % increments. On and after September l, 1991, this additional tax may not be imposed on the sales of food for human consumption which is to be consumed offthe premises where it is sold (other than alcoholic beverages, soft drinks and food which has been prepared for immediate consumption) andprescription and nonprescription medicines, drugs, medical appliances and insulin, urine testingmaterials, syringes and needles usedbydiabetics. The tax imposedbya homerule municipality pursuant to this Section and all civil penalties that may be assessed as an incident thereof shall be collected and ( enforced by the State Depariment ofReYenne. The certificate ofregistration which is issued by the Department to a retailer underthe Retailers' OccupationTax Act I orunderthe Service OccupationTaxAct2 shall permit suchregistrantto engage in a business which is taxableunder any ordinance orresolution enactedpursuantto this Section withoutregistering separatelywith the Departmentunder such ordinance or resolution or under this Section. The Department shall have full power to administer and enforce this Section; to collect all taxes andpenalties due hereunder; to dispose oftaxes and penalties so collected in the manner hereinafter provided, and to detem1ine all rights to credit memoranda arising on account ofthe erroneous payment oftax or penalty hereunder. In the administration of, and compliance with, this Section the Department and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the san1e conditions, restrictions, !imitations, penalties and definitions ofterms, and employ the same modes ofprocedure, as are prescribed in Sections la-I, 2, 2a, 3 through 3-50.' (in respect to all provisions therein other than the State rate oftax), 4 4 (except that the reference to the State shall be to the taxing municipality), 5, 7, 85 (except that thejurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shallbe the taxing municipality), 96 (except as to the disposition of taxes and penalties collected, and except that the returned merchandise credit for this municipal tax may not be taken against any State lax), 10, 11, 12 7 (excepttl1e reference therein to Section2b ofthe Retailers' Occupation Tax Acl) 8, 13 9 (exceptthat any reference 

### to the State shall mean the taxing municipality), the first paragraph ofSection 

### 15, 16, 17 

### IO {except that credit memorandaissued hereundermay notbeusedto discharge any Statetax liability), 18, 19 and 20 ofthe Service Occupation Tax Act 11 and Section 3-7 ofthe Unifonn Penalty and Interest Act, 12 as fully as ifthose provisions were set forth herein.
No tax may be imposed by a home rule municipality pursuant to this Section unless such municipality also imposes a tax at the same rate pursuantto Section 8-11-1 ofthisAct.
Persons subject to any tax imposed pursuant to the authority granted in this Section may reimburse themselves for their serviceman's tax liability hereunder by separately stating such tax as an additional cliarge, which charge may be stated 

### in

i·lelt518-11-5. Home Rule Municipal Service Occupation Tax Act, 1L ST CH 65 § 5!8·11·5
combination, in a single amount, with Stale tax which se1Yicemen are authorized to collect under the Service L'se Tax Act, 1-' pursuant to such bracket schedules as the Department may prescribe. Whenever the Department determines that a refund should be made under this Section to a claimant instead ofissuing credit memorandum, the Department shall notifythe StateComptroller,who shall causethe orderto be drawn forthe amountspecified, and to the person named, in suchnotification from the Department. Such refund shall be paidby the State Treasurer out ofthe home rule municipal retailers' occupation tax fond. The Departmentshall forth\\·ith pay overto the State Treasurer. ex-officio, as trustee, all taxes andpenalties collected hereunder. As soon as possible after the first day of each month, beginning Jamiary !, 2011, upon certification ofthe Department of ReYenue, the Comptroller shall ordertransferred, and the Treasmer shail transfer, to the STAR Bonds Revenue Fund the local sales tax increment, as defined in the Innovation Development and EconomyAct,collected under this Section during the second preceding calendar month for sales within a STAR bond district. After the monthly transfer to the STAR Bonds Revenue Fund, on or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the disbursement ofstated sums ofmoney to named municipalities, the municipalities to be those from ,vhich suppliers and servicemen have paid taxes orpenalties hereunder to the Department during the second preceding calendar month. TI1e amount to be paid to each municipality shal! be the amount (not including credit memoranda) collected hereunder during the second preceding calendar month by the Department, and not including an amount equal to the amount ofrefunds made during the second preceding calendar month by the Department on behalf of such municipality, and not including any amounts that are transferred to the ST ARBonds Revenue Fund. Within 10 days after receipt, by the Comptroller. ofthe disbursement certification to the municipalities, provided for in this, Section to be given to the Comptrollerbythe Department,theComptroller shall cause the ordersto be drawn forthe respective amounts in accordance with the directions contained in such certification.
In addition to the disbursement required by the preceding paragraph and in order to mitigate delays caused by distribution procedures, an al!ocation shall, ifrequested,be made within IO days after Janumy 14, 1991, and in November of 1991 a11d each yearthereafter, to eachmunicipalitythatreceivedmore than $500,000 during the precedingfiscal year, (July I through June 30) whether collectedby the municipality or disbursed by the Department as required by this Section. Within 10 days afterJanuary 14, 1991, participating municipalities shall notify the Department in writing oftheir intent to participate. In addition, for the initial distribution, participating municipalities shall certify to the Department the amounts collected by the municipality for each month underits home rule occupationand service occupationtax during theperiodJuly I, 1989throughJune 30, 1990. The allocationwithin IO days afterJanuary 14, J991, shallbe in an amountequal to the monthly average ofthese amounts, excluding the 2 months ofhighest receipts. Monthly average for the period ofJuly 1, 1990 through June 30, 1991 will be detennined as follows: the amounts collected by the municipality under its home rnle occupation and service occupation tax during the period ofJuly 1, 1990 through September 30, 1990, plus amounts collected by the Department andpaid to such municipality through June 30, l991, excluding the 2 months ofhighest receipts. The monthly average for each subsequent period ofJuly 1 through June 30 shall be an amount equal to the monthly distribution made to each such municipality under the preceding paragraph during this period, excluding the 2 months ofhighest receipts. The distribution made in November 1991 and each year thereafter under this paragraph and the precedingparagraph sha!l be reducedbythe amount allocated and disbursed under this paragraph in the precedingperiod ofJuly 1through June 30. The Department shall prepare andce1tify to the Comptroller for disbursement the allocations made in accordance with this paragraph. Nothing in this Section shall be constmed to authorize a municipality to impose a tax upon the privilege ofengaging in any business \vhich under the constitution ofthe United States may not be made the subject oftaxation by this State. An ordinance or resolution imposing or discontinuing a tax hereunder or effecting a change in the rate thereofshal! be adopted and a certified copy thereoffiled withthe Departmenton orbeforethefirstday ofJune,whereuponthe Department shall proceed 

### (

# I 5/8-11-5. Home Rule Municipal Service Occupation Tax Act, IL ST CH 65 § 518-11-5

to administer and enforce this Section as ofthe first day of September next fo!lowing such adoption and filing. Beginning January l, 1992, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate thereofshall be adopted and a certified copy thereoffiled with the Department on orbefore the first day ofJuly, whereupon the Department shall proceed to administer and enforcethis Sectionas ofthe first day ofOctobernext following such adoption and filing. Beginning January 

### 1. 1993, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate thereofshall be adopted and a certified copy thereoffiled with the Department on or before the first day of October. whereupon the Department shall proceed to administer and enforce this Section as ofthe frrst day ofJanuary next fo!lowing such adoption and filing. Howewr, a municipality located in a county with a population in excess of3,000,000 that elected to become a home mle unit at the general primary election in 1994 may adopt an ordinance or resolntion imposing the tax under this Section and file a certified copy ofthe ordinance or resolution with the Department on or before July 1, 1994. The Department shall then proceed to administer and enforce this Section as ofOctober!, 1994. Beginning April 1, 1998, an ordinance orresolution imposing or discontinuing the ta.-.;: hereunder or effecting a change in the rate thereofshall either (i) be adopted and a certified copy thereoffiled with the Dt':partment on orbefore the first day ofApril, whereupon the Department shall proceed to administer and enforce this Section as ofthe first day ofJuly next following the adoption and filing; or (ii) be adopted and a certifiedcopy thereoffiled with the Department on orbeforethe first day ofOctober, whereuponthe Department shall proceed to administer and enforce this Section as ofthe first day ofJanuary next following the adoption and filing. Anyunobligatedbalance remaining in the ~unicipal Retailers' Occupation Tax Fund on December 31, !989, which fund was abolished by Public Act 85~1135, and all receipts ofmunicipal tax as aresult ofaudits ofliability periods prior to January 1, 1990, shall be paid into the Local Government Tax Fund, for distribution as provided by this Section priorto the enactment of Public Act 85-1135. A!! receipts ofnmnicipal tax as a result ofan assessment 1101 arising from an audit, for liability periods priorto January 1, 1990, shall be paid into the Local GovernmentTax Fundfor distribution beforeJuly 1, 1990, as providedby this Section prior to the enactment ofPublic Act 85-1135, and on and after July I, 1990, all such receipts shall be distributed
as provided in Section 6z-18 ofthe State Finance Act. 14
As used in this Section, ''municipal" and "municipality" means a city, village or incorporated town, including an incorporated town which has superseded a civil township. This Section shall be known andmaybe cited as the Home Rule Municipal Service OccupationTax Act.



### Credits Laws 1961, p. 576, § 8-11-5, added by Laws 1961, p. 1731, § l, eff. July 10, 1961. Amendedby Laws 1963, p. 56, § I, eff. March 8, 1963; Laws J963, p. 1686, § l, eff. July 16, 1963; Laws 1967, p. 1112, § 1, eff. July l, 1967; Laws 1967, p. 1793, § 1, eff. Aug. 

### 1. 1967; Laws 1967, p. 2962, § 1, eff. Aug. 14, 1967; Laws 1968, p. 236, eff. July I, 1969; P.A. 76-340, § I, eff. July l, 1969; P.A. 76-1891, § I, eff. Oct. 10, 1969; P.A. 76-2046, § 1, eff. July 1, 1970; P.A. 77-131, § I, eff. July I, 1971; P.A. 77-1024, § I, eff. Aug. 17, 1971; P.A. 77-2829, § 9, eff. Dec. 22, 1972; P.A. 78-255, § 61, eff. Oct. 1, 1973; P.A. 78-592, § 15, eff. Oct. 1, 1973; P.A. 78-1255, § l, eff. Dec. 5, 1974; P.A. 78-1297, § 58, eff. March 4, 1975; P.A. 79-1454, § 8, eff. Aug. 31, 1976; P.A. 80-1292, § 5, eff. Jan. I, 1979; P.A. 81-526, § I, eff. Sept. 11, 1979: P.A. 81-1379, § 5, eff. Aug. 12, 1980; P.A. 82-683, § 5, eff. Nov. 12, 1981; P.A. 82-1013, 

### § 5, eff. Sept. 17, 1982; P.A. 82-1035, Art. II,§ 1, eff. Dec. 22, 1982; P.A. 83-1362, Art. lll, § 3, eff. Sept. 11, 1984; P.A. 84-149, § I, eff. Aug. 12, 1985; P.A. 84-940, § \, eff. Sept. 25, 1985; P.A. 84-1262, § 1, eff. Jan. 1, 1987; P.A. 84-1308, Art. II,§ 30, eff. Aug. 25, 1986; P.A. 84-1457, § 1, eff. Jan. 6, 1987; P.A. 85-293, Art. II,§ 4, eff. Sept. 8, 1987; P.A. 85~1135, Art. IL§ I, cff. Jan. 1, 1990; P.A. 85-1409, § 

### I. eff. July!, 1989; P.A. 86-820. An. 

### IJ, § 2-2. eff. Sept. 7, 1989; P.A. 86-928, Art. 3, § l, eff. Jan. L 1990: P.A. 86-1475, Art. 5. § 5-6, eff. Jan. 10, 1991; P.A. 86-1481, Art. 3, §Leff. Jan. 14, 1991; P.A. 87-205, Art. 2, § 2-1, elf. July I, 1992; P.A. 87-205, Art. 4, § 4-1, elf. Jan. 

### 1. 1994; P.A. 87-435, Art. 2, § 2-5, eff. Sept. 10, 1991; P.A. 87-895, Art. 2. § 2-14, eff. Aug. 14, !992; P.A. 88-603, § 5, eff. Sept. I. 1994; P.A. 90-689, § 10, eff. July 31, 1998. Re-enacted by P.A. 91-51. § 150, eff. June 30, 1999. Amended by P.A. 96-939. § 70, cff. June 24, 2010.5/8-11-5. Home Rule Municipal Service Occupation Tax: Act. IL ST CH 65 § 5/8·11·5
Formerly Ill.Re\·.Stat. I991. ch. 24. •· 8- ll-5.

;\;oks ofDecisions (11)

Footnotes 35 ILCS 120 l et ,cq. 2 35IlCS 1151 ct seq. 3 35JLCSJ152.ll52a,1153toll53-50. 4 351LCS 115.'4. 5 35ILCSl155.ll57.andl15.'S. 6 35!LCS1159. 7 351LCS1J5"10,l15l1,andl\5·1'1:. 

### 8 35 ILCS 120'2b. 9 35 !LCS l 15 'l3. 10 35IlCS 115'15, 115'!6,and 115,17 

### JI 351LCSll5·'!1,115·19,and11520. 1.2 35 !LCS 735'3-7. 13 35ILCSllOlctocq. !4 30 ILCS lll5i6z-1S. 65 I.L.C.S. 5/8-11-5, IL ST CH 65 § 5/8-11-5 Current through P.A. 99-393 ofthe 2015 Reg. Sess.

I ,,,1 -.1 !l.,,,.,.,.

## ,.r

ilt:·:t 

### I

(518-11-5. Home Rule Municipal Service Occupation Tax Act, IL ST CH 65 § 5/8-11-5



### West's Smith-Hurd Illinois Compiled StatutesAnnotated

Chapter 65. Municipalities



### Act 5. Illinois Municipal Code (Refs & 

### Annas)

Article 

### 8. Finance Dhision 

### 11. 

### Certain ReYenue Taxes 65 ILCS 5/8-11-5 Formerly

### cited as IL ST CH 24 is-11-5 

### 5/8-11-5. Home Rule Municipal ScniccOccupation Tax.Act Effective: June 24, 2010 Currentness §

### 8-11-5. Home Rule Municipal Sen·iceOccupationTax Act. The corporate authorities ofahome rule municipalitymayimpose atax upon all persons engaged, in such municipality, in the business ofmaking sales ofservice at the same rate oftax imposed pursuant to Section 8-11-1, ofthe selling price ofall tangible personal property transferred by such servicemen either in the form oftangible personal property or in the fom1 ofreal estate as an incident to a sale ofservice. 

### Ifimposed, such tax shall only be imposed in 1 /4 % 

### increments. On and after September I, 1991, this additional tax may not be imposed on the sales of food for human consumption which is to be cons\1med offthe premises where it 

### is sold { other than alcoholic beverages. soft drinks and food which has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes and needles used by diabetics. The tax imposed by ahomerule municipality pursuant to this Section and all civil penalties that may be assessed as an incident thereofshall be collected and ( enforced by the State Department ofRevenue. The certificate ofregistration which is issued by the Department to a retailer under the Retailers' OccupationTax Act I orunderthe Service OccupationTax Act2 shall pennit such registrant to engage in a business which is taxable under any ordinance orresolution enactedpursuant to this Sectionwithout registering separately with the Department under such ordinance or resolution or under this Section. The Department shall have full power to administer and enforce this Section: to collect all taxes and penalties due hereunder; to dispose oftaxes and penalties so collected in the manner hereinafter provided, and to detem1ine all rights to credit memoranda arising on account ofthe erroneous payment oftax or penaltyhereunder. la the administration of, and compliance with, this Section the Department and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions ofterms, and employ the same modes ofprocedure, as are prescribed in Sections 1 a-1, 2, '.2a, 3 through 3-50 3 (in respect to all provisions therein ot]1er than the State rate oftax), 44 (except that the reference to the State shall be to the taxing municipality), 5, 7, 85 

### (except that thejurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the taxingmtmicipality), 96 (except as to the disposition of taxes and penalties collected, and except that the remmedmerchandise credit for this municipal tax maynot be taken against any State tax), JO, 

### 11, 12 7 (except the reference therein to Section 2b ofthe Retailers' OccupationTax Act) S, 13 9 (except that any reference to the State shall mean the taxing municipality), the first paragraph ofSection 15, 16, 17 10 (except that credit memoranda issued hereunder may not be used to discharge any State tax liability), 18, l 9 and 20 ofthe Service Occupation Tax Act 11 and Section 3-7 ofthe Uniform Penalty and Interest Act, 12 as fully as ifthose provisions were set forth herein.
No tax may be imposed by a home rule municipality pursuant to this Section unless such municipality also imposes a tax at the same rate pursuant to Section 8-11-1 ofthis Act.
Persons subject to any tax imposed pursuant to the authority granted in this Section may reimburse themselves for their serviceman's tax liability hereunder by separately stating such tax as an additional charge, which charge may be stated in5!8-11·5. Home Rule Municipal Service Occupation Tax Act. IL ST CH 65 § 513-11-5

combination. in a single amou11t, with State tax which servicemen are auth01ized to col!ect under the Service Use Tax Act. l.l pursuant to such bracket schedules as the Department may prescribe. Whenever the Department detem1ines that a refund should be made under this Section to a claimant instead ofissuing credit memorandum, the Departmentslial! notifythe State Comptroller.who shall causethe orderto be drawn forthe amount specified, and to the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out ofthe home rule municipal retailers' occupation tax fund. The Depa11ment shall fo11hwith pay overtothe State Treasurer, ex-officio, as trustee, alltaxes and penalties collectedhereunder. As soon as possible after the first day ofeach month. beginning January I, 2011, upon certification ofthe Depa1iment of Re,·enue, the Comptroller shall ordertransfeffcd, and the Treasurer shall transfer, to the STAR Bonds Re\'enue Fund the local sales tax increment, as defined in the Innovation Development and EconomyAct. collectedunderthis Sectionduring the second preceding calendar month for sales within a STARbond district. After the monthly transfer to the STAR Bonds Revenue Fund, on or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the disbursement ofstated sums ofmoney to named municipalities, the municipalities to be those from which suppliers and servicemen have paid taxes or penalties hereunder to the Department during the second preceding calendar month. The amount to be paid to each municipality sha!J be the amount (not including credit memoranda) collected hereunder during the second preceding calendarmonth by the Department. and not including an amount equal to the amount of refunds made during the second preceding calendar month by the Department on behalf of such municipality, and not including any amounts that are transferred to the STAR Bonds Revenue Fund. Within IO days after receipt. by the Comptroller, ofthe disbursement certification to the municipalities, provided for in this, Section to be given to the Comptrollerby the Department, the Comptroller shall cause the orders tobe drawn for the respectiveamounts in accordance with the directions contained in such ceitification.
In addition to the disbursement required by the preceding paragraph and in order to mitigate delays caused by distribution procedures, an allocation shall, ifrequested, be made within l Odays afterJanuary 14, l991, and in November of 1991 and each year thereafter. to each municipality that received more than $500,000 during thepreceding fiscal year, {July l through June 30) whethercollectedbythe municipality ordisbursed by the Department as requiredby this Section. Within 10 days aHerJanuary 14, 199l, participating municipalities shall notify the Department in writing oftheir intent to participate. In addition, for the initial distribution, participating municipalities shall ce11ify to the Department the amounts collected by the municipality for eachmonthunder its home rule occupation and serviceoccupationtax during theperiodJuly 1, l989 through June 30, 1990. The allocation within 10 days afterJanuary 14, 1991, shall be in an amount equal to the monthly a\'erage ofthese amounts, excluding the 2 months of highest receipts. Monthly average for the period ofJuly I, 1990 through June 30, 1991 

### will be detennined as follows: the amounts collected by the municipality under its home rule occupation and service occupation tax during the period ofJuly I, 1990 through September 30, 1990, plus amounts collected by the Department and paid to such municipality through June 30, 1991, excluding the 2 months ofhighest receipts. The monthly average for each subsequent period ofJuly l through June 30 shall be an amount equal to the monthly distribution made to each such municipality under the preceding paragraph during this period, excluding the 2 months ofhighest receipts. The distribution made in November 199! and each year thereafter under this paragraph and the precedingparagraph shall be reducedbythe amount allocated and disbursed under this paragraph in the preceding period ofJuly I through June 30. The Department shall prepare and certify to the Comptroller for disbursement the allocations made in accordance with this paragraph. Nothing in this Section shall be constmed to authorize a municipality to impose a tax upon the privilege ofengaging in any business which tmder the constitution ofthe United States may not be made the subject oftaxation by this State. An ordinance orresolution imposing or discontinuing a tax hereunder or effecting a change in the rate thereofshall be adopted and a certified copy thereoffiled withthe Departmentonorbefore the firstdayofJune,whereuponthe Department shallproceed 

### (

### (



### ( SiS-11-5. Home Rule Municipal Service Occupation Tax Act. IL ST CH 65 § 5!8-11-5

to administer and enforce this Section as ofthe first 

### day ofSeptember next following such adoption and filing. Beginning January 1. 

### 1991. an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate thereof shall be adopted and a certified copy thereoffiled with the Department on or before the first day ofJuly, whereupon the Department shall proceedto administermid enforcethis Section as ofthe first day ofOctobernextfollowing such adoption and filing. Beginning January I, 1993, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate thereof shall be adopted and a certified copy thereoffiled with the Department on or before the first day of October, whereupon the Department shall proceed to administer and enforce this Section as ofthe first day ofJanuary next following such adoption and filing. However. a municipality located 

### in a county with a population in excess of3,000,000 that elected tobecome 

### a homernle unit at the general primary election in 1994 may adopt an ordinance or resolution imposing the tax under this Section and file a certified copy ofthe ordinance or resolution with the Department on or before July 

### 1, 1994. The Department shall then proceed to administer and enforce this Section as ofOctober l, 1994. BeginningApril 1, I998, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate thereofshall either (i) be adopted and 

### a certified copy thereoffiled with the Department on or before the first day ofApril, whereupon the Department shall proceed to administer and enforce this Section as ofthe first day ofJuly next following the adoption and filing; 

### or (ii) be adopted and a certifiedcopythereoffiled with the Departmenton orbeforethe first day ofOctober,whereupon the Department shall proceed to administer and enforce this Section as ofthe firs! day ofJanuary next following the adoption and filing. Anyunobligated balance remaining in the Municipal Retailers' OccupationTax Fund on December 31, 1989, which fund was abolished by Public Act 85-1135. and all receipts ofmunicipal tax as a result ofaudits ofliability periods prior to January I, 1990, shall be paid into the Local Government Tax Fund, for distribution as provided by this Section prior to the enactment of Public Act 85-1135. All receipts ofmunicipal tax as a result ofan assessment not arising from an audit, for liability periods priorto January 1, 1990, shall be paid into the Local Government Tax Fund for distribution before July I, 1990, as provided by this Section prior to the enactment ofPublic Act 85-1135, and on and afterJuly l, 1990, all such receipts shall be distributed
as provided in Section 6z-18 ofthe State Finance Act. 1~ As used in this Section, "municipal" and "municipality" means a city, village orincorporated tovm, including an incorporated town ,vhich has superseded 

### a civil township.
This Section shall be kno,vn and may be cited as the Home Rule Municipal Service Occupation Tax Act.

Credits Laws 1961, p. 576, § 8-11-5, added by Laws 1961, p. 173 l, § I, eff. July 10, 1961. Amended by Laws 1963, p. 56, § 1, eff. March 8. 

### I963: Laws 1963, p. 1686, § 

### I, eff. July 16, 1963; Laws 1967, p. 1112, § Leff. July 

### 1, 1967; 

### Laws 1967, 

### p. J793, § 1, eff. Aug. I, 1967; Laws 1967, p. 2962, § l, cff. Aug. 14, 1967; Laws 1968, p. 236, eff. July l, 1969; P.A. 76-340, § 1, eff. July l, 1969: P.A. 76-1891, § I, eff. Oct. JO, 1969: P.A. 76-2046, § l, eff. July I, 1970; P.A. 77-131, § I, eff. July!, 1971; P.A. 77-1024, § l,eff. Aug. 17, 1971; P.A. 77-2829, § 9,eff. Dec. 22, 1972: P.A. 78-255, § 61, eff. Oct. 1, 1973: P.A. 78-592, § 15, eff. Oct. l, 1973; P.A. 78-1255, § 1, eff. Dec. 5, 1974; P.A. 78-1297. § 58, eff. March 4, 1975; P.A. 79-1454, § 8, eff. Aug. 3I, l976; P.A. 80-1292, § 5, eff. Jan. 1, 1979; P.A. 81-526, § l, eff. Sept. 11, 1979; P.A. 81-1379, § 5. eff. Aug. 12, 1980: P.A. 82-683, § 5, eff. Nov. 12, 1981; P.A. 82-1013, § 5, eff. Sept. 17, 1982; P.A. 82-1035, Art. !I,§ I, eft: Dec. 22. 1982; P.A. 83-1362, Art. 

### III,§ 3, eff. Sept. 

### II, 1984; P.A. 84-149, 

### § 1, eff. Aug. 12, 1985; P.A. 84-940, § 

### I, eff. Sept. 25.1985: P.A. 84-1262, § 1, eff. Jan. 1, 1987; P.A. 84-1308, Art. Il, § 30, eff. Allg. 25, 1986; P.A. 84-1457, § \, eff. Jan. 6, 1987; P.A. 85-293, Art. II,§ 4, eff. Sept. 8, 1987: P.A. 85-1135. Art IL§ Leff. fan. 1, 1990; P.A. 85-1409, § L r::ff. July I. 1989; P.A. 86-820, A1t. ll, § 

### 2-1, eff. Sept. 7. 1989; P.A. 86-928, Art. 3. § I. eff. Jan. 1. 1990; P.A. 86~!475, Art. 5. § 5-6, eff. Jan. 10, 1991; P.A. 86-1481. Art. 3, §Leff. Jan. 14, 1991; P.A. 87-205, Art. 2. ¢ 2-1, eff. July 1, 1992; P.A. 87-205, Art. ·L ¢ 4-1, 

### e!T. Jan. I, 1994; P.A. 87-435. Art. 2, § 2-5, eff. Sept. 10, 1991; P.A. 87-89:'. Art. 2. § 2-14. 

### eff. Aug. 14. 1992; 

### P.A. 88~603, § 5. eff. Sept. l. 1994; P.A. 90-689, 

### ¢ JO. eff. July 31, 1998. Re-enacted by P.A. 91-5L § 150, eff. June 30, 1999. Amended by P.A. 96-939, § 70, eff. June 24, 2010.

f·),-,,513-11·5. Home Rule Municipal Service Occupation Tax Act. IL ST CH 65 § 5/8-11-5
Formerly Jll.Re\.Stat.199L d1. 2--1-. • 8-11-5.



### Notes ofDeci~ions (11)

Footnotes 35 !LCS 12U l c'T ~cq. 

### 2 351LCS1151c"t~cq. 3 351LCSJl52.ll52a.1J53toll53-50. 4 351LCS!l54. 5 35 JLCS 115 5. I !:Vi. and 115 ('(. 6 35 ILCS 115 9. 7 35JLCS 11510.115 11,and 11512. g 35 ILCS 120 2b. 9 35!LCS115J3. 10 351LCS!l515.11516,and!l517 11 35 !LCS 115 8, 11519.and 115 20. 12 35 ILCS 735 3-7. 13 35 ILCS 110 l ct s~q. 14 30ILCSI056L-l~. 65 I.L.C.S. 5/8-11-5. lL ST Cll 65 §5/8-11-5 Current through P.A. 99-487 ofthe 2015 Reg. Sess.



## " ' i ,,:'- • 

### (( 8-11-1.3. Non-Home Rule Municipal Retailers' Occupation

.... S.H.A. ch. 24 'j'J 8-11·1.3

S.H.A. ch. 24 

### 'ii 8-11-1.3 SMITH-HURD ILLINOISANNOTATED STATUTES CHAPTER24. CITIESAND VILLAGES 

### ILLINOISMUNICIPALCODE ARTICLE 8. FINANCE DIVISION 11. CERTAIN REVENUETAXES
8-11-1.3. Non-Home Rule Municipal Retailers' Occupation Tax Act

§ 

### 8-11-1.3. The corporate authorities of a non-home rule municipality Viith 

### more than 130,000 but less than 1,000,000 inhabitantsmayimposeataxuponallpersonsengagedin the business ofsellingtangiblepersonalproperty, otherthan on anitem oftangible personalproperty which is titled and registeredbyan agency ofthis State's Government, at retail in the municipality at the rate of 

### Y2 of l% for expenditure on public infrastructure as defined in Section 8-11-1.2 ifapproved by referendum as provided in Section 8-11-1 .!, ofthe gross receipts from such sales made in the course ofsuch business. The tax imposed by a municipalitypursuant to this Section and all civil penaltiesthat may be assessed as an incident thereofshallbe coUected and enforced by the State Department ofRevenue. The ce1iificate ofregistration which is issued by the Department to a retailer under the ·'Retailers' Occupation Tax Acf", approved June 28, 1933, as amended, 1 shall pennit such retailer to engage in a business which is taxable under any ordinance orresolution enactedpursuantto this Sectionwithoutregistering separ.i.tely with the Department under such ordinance or resolution orunder this Section. The Department shall have foll power to administer and enforce this Section; lo collect all taxes and penalties due hereunder: to dispose oftaxes and penalties so collected in the manner hereinafter provided, and to detennine all rights to credit memoranda, arising on account ofthe erroneous payment oftax or penalty hereunder. In the administration of, and compliance \Vith, this Section, the Department and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the same conditions, restrictions, !imitations, penalties and definitions oftem1s, and employ the same modes ofprocedure, as are prescribed in Sections l, Ia, Ia-1, Id, Ie, lf, 1

### i, Jj, 2 2 (in respect to all provisions thereinotherthan the Staterate oftax). 2c, 3 3 (except as to the disposition oftaxes and penalties collected), 4, 5. 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j. 5k, 5/, 6, 6a, 6b, 6c, 7, 8, 9, 10, II, 12, 13 and 13'1:: ofthe "Retailers' Occupation Tax Act", as the same are now or may hereafterbe amended, 4 as fully as ifprovisions contained in those Sections ofthe ·'Retailers' Occupation Tax Act" were set forth herein.

Persons subjectto anytax imposed pursuantto the authority granted in this Sectionmayreimburse themselves for their seller's tax liability hereunderby separately stating such tax as an additional charge, which charge maybe stated in combination, in a single amount, with State taxwhich sellers are requiredto collectunderthe "UseTaxAct", 5 pursuantto suchbracket schedules as the Department mayprescribe.

Wheneverthe Departmentdetem1ines that a refund should be madeunderthis Section to aclaimant instead ofissuing a credit memorandum, theDepartment shall notifythe StateComptroller,who shall causethe orderto bedrawn forthe amountspecified, andto the person named, in such notification from the Depru1ment. Such refund shall be paid by the State Treasurer out ofthe non-home rnle municipal retailers' occupation tax fund. TheDepartmentshall forthwithpayoverto the StateTreasurer,ex officio.as trustee, all taxes andpenalties collectedhereunder. On orbefore the 25thday ofeach calendarmonth,theDepartment shallprepare and certifyto the Comptrollerthe disbursement ofstated sumsofmoneyto named municipalities, the municipalitiesto bethose from whichretailers havepaidtaxes orpenalties hereunder to the Department during the second preceding calendar month. The amount to be paid to each municipality shall be the amount (not including credit memoranda) collected hereunder during the second preceding calendar month by the Department plus an amount the Department detem1ines is necessary to offset any amounts which were erroneously paid to a different taxing body, and not including an amount equal to the amount ofrefonds made during the secondpreceding calendar month by the Department on behalfofsuch municipality, and not including any amount which the Department determines is necessaryto offset any amounts which were payable to a different taxing bodybutwere en-oneously paid to the municipality. Within 10 days after receipt, by the Comptroller, ofthe disbursement certification to the municipalities, provided for in this 

# "


# . ,,.,..,,8·11·1.3. Non·Home Rule Municipal Retailers' Occupation

..., S.H.A. ch. 24 

### 'if 8-11·1.3

Section to be giYen to the Comptrollerbythe Department, the Comptroller shall causethe orders to be drawn for the respective amounts in accordance with the directions contained in such certification.

Forthe purpose ofdetermining the local goYernmental unit whose tax is applicable, 

### aretail sale, by a producer

### ofcoal or other mineral mined in Jllinois, 

### is a sale at retail at the place where the coal or other mineral mined 

### in Illinois is extracted from the earth. This paragraph does not apply to coal orother mineral when it is delivered or shipped by the sellerto the purchaser at a point outside Illinois so that the sale 

### is exempt under the Federal Constitution as a sale in interstate or foreign commerce. Nothing in 

### this Section shall be construed to authorize a municipality to impose a tax upon the prh·iiege ofengaging 

### in any business which under the constitution ofthe United States may not be made the subject oftaxation by this State.

When certifyingthe amount ofa monthly disbursement to a municipality under this Section, the Department shall increase or decrease such amount by an amount necessary to offset any misalJocation ofpre\"ious disbursements. The offset amount shall be the amount erroneously disbursed within the previous 6 months from the time a misallocation 

### is discovered. Asused in this Section, '"Municipal" and ··Municipality"means a city, Yillage or incorporatedtown. including an incorporated town which has superseded a civil township. This Section shall be known and may be cited as the "Non-Home Rule l\fonicipal Retailers' Occupation Tax Act'. 1990 Pocket Pait Credit(s) Laws 1961, p. 576, § 8-11-1.3, added by P.A. 85-1135, Art. II, § I, eff. Jan. 

### I. 1990. Amended by P.A. 86-928, Art. 3, § !, eff Jan. 1, 1990.

1 Chapter 120, •: 440 et seq. 2 Chapter 120,

### ~~ 440, 440a, 440a-l, 440d to 440f, 440i, 440j, 441. 3 Chapter 120,

# n 44lc, 442. 4 Chapter 120,

# n 443 to 444g. 444h (repealed). 444i to 444/, 445 to 445c, 446 to 450, 451 to452Y,. 5 Chapter 120.

### ~ 439.1 et seq. HISTORICAL NOTES HISTORICAL AND STATUTORY NOTES 1990 PocketPan Historical and StatutoryNotes For legislative intent, affect and effective date ofP.A. 85-1135, see notefollowing ch. 24,**~** 8-11- !. P.A. 86-928, in the first paragraph, inserted in the first sentence, "'other than on an item oftangible persona! property which is titled and registered by an agency ofthis State's Government'\ and in the last sentence, inserted "1 a-1 ", "1i, Ij'', "'5k, Sf' and following "'taxes and penalties collected·', deleted "'and except for the provision allowing retailers a deduction from the taxto cover certain costs"; in the third paragraph, inserted "non-home mle"; and inserted "Non-Home Rule"' in the cite. REFEREKCES LIBRARY REFERENCES l990 Pocket PartLibrary References Words and Phrases (Pem1. Ed.) 1,,,J,.;1b,,,,n.-.a1518-11-1.3. Non-Home Rule Municipal Retailers' Occupation

..., !L ST CH 65 § 518·11-1.3



### \Vest's Smith-Hurd Illinois Compiled StatutesAnnotated Chapter 65. Municipalities



### Act 5. Illinois Municipal Code (Refs &

### Annos)

Article 8. 

### Finance Dh'ision 11. CertainReYenue Taxes 65 ILCS 5/8-11-1.3 Fom1erly cited as ILSTCH 24 13-11-1.3 5/8-11-1.3. ~on-Home Rule )1unicipal Retailers' Occupation TaxAct 

### EffoctiYe: July31, 2015 Currentness
§ 

### 8-11-1.3. Non-Home Rule Municipal Retailers' Occupation Tax 

### Act. The corporate authorities of a non-home rule municipality may impose a tax upon all persons engaged in the business ofselling tangible personal property. other than on an item oftangible personal property which is tilled and registered by an agency ofthis State's Gm·emment, at retail in the municipalityfor expenditure onpublic infrastructure orforpropertytaxrelieforboth as defined in Section 8- l 1-

### J.2 ifapproved by referendum as provided in Section 

### 8-11-1.1, ofthe gross receipts from such sales made in the course ofsuchbusiness. lfthe tax is approvedbyreferendum on orafter July 14. 20

### IO (the effectivedate ofPublic Act 96-1057), the corporate authorities ofa non-homernle municipalitymay,until December 31, 2020, use the proceedsofthetax for expenditure onmunicipal operations, in addition to or in lieu ofany expenditure on public infrastructure orfor propertytax relief. The tax imposed maynotbe more than 1 % and maybe imposed onlyin 1/4% increments. Thetax maynotbe imposed onthe sale offood forhuman consumption ( that is to be consumed offthe premises where 

### it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and prescription and nonprescriptionmedicines, drngs, medical appliances, and insulin, urine testing materials, syringes. and needles used by diabetics. The tax imposed by a municipality pursuant to this Section and alt civil penalties that may be assessed as an incident thereofshall be collected and enforced by the State Department of Revenue. The ce1tificate ofregistration which is issued by the Department to a retailer under the Retailers' Occupation Tax Act I shall pem1it such retailerto engage in a business which is taxable under any ordinance orresolution enacted pursuant to this Section without registering separately with the Department under such ordinance or resolution orunder this Section. The Department shall have full power to administer and enforce this Section; to collect all taxes and penalties due hereunder; 

### to dispose oftaxes andpenalties so collectedin the mannerhereinafter provided, and to determine all rights to creditmemoranda, mising on account ofthe enoneous payment oftax or penalty hereunder. In the administration of, and compliance with, this Section,theDepartmentandpersonswho are subjectto this Section shallhave the samerights, remedies, privileges, immunities, powers andduties, andbe subjectto the same conditions, restrictions, limitations, penalties and definitions ofterms, and employ the same modes ofprocedure, as are prescribed in Sections I, la, la-1, ld, le, If, Ji, lj, 2 through 2-65 2 (in respect to all provisions therein otherthan the State rate oftax), 2c, 33 (except as to the disposition oftaxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, Sh, Si, Sj, Sk, 51, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 ofthe Retailers' Occupation Tax Act"' and Section 3-7 ofthe Uniform Penalty and Interest Act5 as fully as ifthose provisions were set forth herein.
No municipality may impose a tax under this Section nnless the municipality also imposes a tax at the same rate under Section 

### 8-11-1.4 ofthis Code.
Persons subject to any tax imposed pursuant to the authority granted in this Section mayreimburse themselves for their setler's tax liability hereunderby separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax which sellers are required to collectunderthe Use Tax Act, 6 pursuantto such bracket schedules as the Departmentmay prescribe

.



# .'

- 

## ,,.,..518·11 ·1.3. Non-Horne Rule Municipal Retailers' Occupation

..., IL ST CH 65 § 518-11-1.3

WheneYer the Department detem1ines that a refund should be made under this Section to a claimant instead ofissuing a credit memorandum, the Department shall notify the State Comptroller,who shall cause the orderto be drawn forthe amountspecified, and to the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out ofthe non-home 

### rule municipal retailers' occupation tax fund.
TheDepartment shall forthwith payoverto the State Treasurer, exofficio. as tmstee, all taxes and penalties collectedhereunder.
As soon as possible after the first day of each month, beginning January I, 2011, upon certification of the Department of Revenue. the Comptroller shall order transferred, andthe Treasurer shall transfer, to the STAR Bonds Revenue Fundthe local sales tax increment, as definedinthe Innovation DeYelopment and EconomyAct. collectedunderthis Section during the second preceding calendarmonth for sales \\"ithin a ST AR bond district.
After the monthly transfer to the STAR Bonds ReYenue Fund, on or before the 25th day of each calendar month. the Department shall prepare and ce1tify to the Comptroller the disbursement ofstated sums ofmoney to named municipalities, the municipalities to be those from which retailers ha\'e paidtaxes orpenalties hereunder to the Departmentduring the second preceding calendar month. The amount to be paid to eachmunicipality shall be the amount (not including credit memoranda) collected hereunder during the secondpreceding calendarmonthbythe Departmentplus an amountthe Department detennines is necessary to offset any amounts ,,foch were erroneously paid to a different taxing body, and not including an amount equal to the amount ofrefunds made during the second preceding calendarmonth by the Department on behalfofsuch municipality, and not including any amount which the Department determines is necessaiy to offset any amounts which ,vere payable to a different taxing body but were erroneously paid to the municipality, and not including any amounts that arc transferred to the STAR Bonds Revenue Fund. Within 10 days after receipt, by the Comptroller, ofthe disbursement certification to the municipalities, provided for in this Section to be given to the Comptroller bythe Department, the Comptroller shall cause the orders to be dra,vn for the respective amounts in accordance with lhe directions contained in such certification.
Forthe purpose ofdetermining the local go,,ernmenta! unit whose tax is applicable, a retail sale. by a producerofcoal orother mineral mined in Illinois, is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from the earth. This paragraph does not apply to coal oi" other mineral when it is delivered or shipped by the seller to the purchaser at a poinl outside Illi11ois so that the sale is exempt under the Federal Constitution as a sale in interstate or foreign commerce. Nothing in this Section shall be construed to authorize a municipality to impose a tax upon the priYilege ofengaging in any business which underthe constitution ofthe United States may notbe made the subject oftaxation by this State. \Vhen certifying the amount ofa monthly disbursement to a municipalityunder this Section, the Department shall increase or decrease such amount by an amount necessary to offset any misallocation ofprevious disbursements. The offset amount shall be the amount erroneously disbursed within the previous 6 months from the time a misallocation 

### is discovered.
The Department ofRevenue shail implement this amendatory Act ofthe 91st General Assembly so as to collect the 

### tax 011 andafterJanuary I, 2002.
As used in this Section, ''municipal" and "municipality" means a city, village or incorporated town, including an incorporated town which has superseded a 

### civil township.
This Section shall be known and maybe cited as the ''Non-Home Rule Municipal Retailers' Occupation Tax Act".

Credits Laws 1961, p. 576, § 8-11-l.3, added by P.A. 85-1135. Art. ll, § 1, eff. Jan. I. 1990. Amended by P.A. 86-928. Art. 3, § I, eff. Jan. I. 1990: P.A. 86-1475. A11. 5.**~** 5-6, dT. Jan. 10, 1991; P.A. 87-205, A11. 4, § 4-1. eff. Jan. 1, 1994; P.A. 87-895. 

## (

## I

(

( 5!8-11-1.3. Non-Home Rule Municipal Retailers' Occupztion

..., IL ST CH 65 § 518-11-1.3

Art. 4.**~** 4-5. eff. Aug. 14. 1992. Re-enacted by P.A. 9]-51.**~** 150. cff. June 30. 199'). Amended byP.A. 91-649.**~** 5, eff. h1i. I. 2000: P.A. 92-739.**~** 5. eff. Jan. I. 2UU3: P.A. 94-679.**~** 5. eff. .Ian. 1, 2006: P.A. 96-939. § 70. cff June 24. 2010: P.A. %-1057,

# * 5. <'ff. July 14, 2010: P.A. 97-333.**~** 165. df Aug. 12. 20! l: P.A. 97-837. § 5. eff. July 20. 2012: P.A. 99-217.**~** 

### 25. eff. July 31, 20!5. Formerlylll.ReY.Stat.I991. ch. 24

... 8-11-1.3.

Footnotes 35 II.CS J2il I ct ~cq. 

### 2 3511.CS 120 l. 120 la.120 la-J. 120 Id. l2U k 120 lf. 120 11.120 lj.and 120 

### 2to 1202-t>5. 3 .<5 JLCS 120 2c and \2(1·3. 4 35 !LCS 120 --l, 1'.'.0 5. 120 Sa. 1211 Sb. 120 5.:. 120 5d. 120 5c'. 120 Sf. 120 5g. 120 Sh. 121) 5i. 120 5j. 12(1 5k. 1:::11 5/. l::'.O 0. 120 C>a. 120 i,b, 120 6c. 12U ~. 12(! Ii. 120 9. 120 10. 120 I!. 120 12 and 120 13. 5 35 !LCS 735 3-7. 6 35 ILCS 105 l c>t ,~q. 651.LC.S. 518-11-1.3, lL ST CH 65 § 5,3.J 1-1.3 Current through P.A. 99-487 ofthe 2015 Reg. Sess.



### r·•-.

## (5/8-11-1.4. Non-Home Rule Municipal Service Occupation.", !L ST CH 65 § 518-11-1.4



### West's Smith-HurdIllinois Compiled StatutesAnnotated Chapter 65. Municipalities

Act 5. Illinois Municipal Code (Refs & 

### Annos)

Article 

### 8. Finance DiYision 11. Certain RewnueTaxes 65 ILCS 5/8-11-1.4 Formerlycited 

### as IL STCH 24 ~8-11-1.4 5/8-11-1-4- Non-Home Rule Municipal Serdce Occupation Tax

### Act Effective: July20, 2012 Currentness
§ 8-11-1.4. Non-Home Rule Municipal Service OccupationTax Act. The corporate authorities ofanon-home rule municipality may impose a tax upon all persons engaged, in such municipality, in the business ofmaking sales ofservice for expenditure on public infrastmcture orfor property tax reliefor both as defined in Section 8-11-1.2 ifapproved byreferendum as provided in Section 8-11-1.1, ofthe selling price ofall tangible personal properly transferred by such servicemen eitherin the fonn of tangible personal propertyorin the 

### fom1 ofreal estate as an incident to a sale ofservice. Ifthe tax is approYed by referendum on orafterJuly 14, 2010 (the effective date ofPublic Act 96-1057), the corporate authorities ofanon-home rule municipalitymay, until December 31. 2020, use the proceeds ofthe tax for expenditure on municipal operations, in addition to or in lieu ofany expendinrre on public infrastmcture orfor propertytax relief. The tax imposed maynot be more tlian I% and maybe imposed only in 1/4% increments. The tax may not be imposed on the sale offood for human consumption that is to be consumed offrhe premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances, and insulin, urine testing materials, syringes, and needles used by diabetics. The tax imposedby a municipalitypursuant to this Section and a!! civil penalties that may be assessed as an incident thereof shall be collected and enforced by the State Department ofRevenue. The certificate ofregistration which is issued by the Department to a retailer under the Retailers' Occupation Tax Act I or under the Service 

### ' Occupation Tax Act- shall pennit such registrant to engage in a business which is taxable under any ordinance or resolution enactedpursuantto this Section withoutregistering separatelywith the Departmentunder such ordinance orresolution orunder this Section. The Department shall have full power to administer and enforce this Section; to collect all taxes and penalties due hereunder; to dispose oftaxes and penalties so collectedinthe manner hereinafterprovided, and to determine all rights to credit memoranda arising on account ofthe erroneous payment oftax orpenaltyhereunder. In the administration of, and compliance with, this Section the. Department and persons who are subject to this Section shallhave the same rights, remedies, privileges, immunities,powers andduties, andbe subjectto the same conditions, restrictions, limitations,penalties and definitions oftenns, and employthe same modes ofprocedure, as are prescribed in Sections 1a-1, 

### 2, 2a, 3through 3-503 (in respect to all provisions therein other than the State rate oftax), 44 (except that the reference to the State shall be to the taxing municipality), 5, 7, 8 5 (except that thejurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the taxing municipality), 9 6 (except as to the disposition oftaxes and penalties collected, and except that the returned merchandise credit for this municipal tax may not be taken against any State tax), 10, 11, 12 7 (except the reference therein to Section 2b oftl1e Retailers' Occupation Tax Act)8
, 13 9 (except that any reference to the State shall mean the taxing municipality), the first paragraph ofSection 15, 16, 17, 18, 19 and 20 ofthe Service Occupation Tax Act 10 and Section 3-7 ofthe Uniform Penalty and Interest Act, 11 as fully as ifthose provisions \Vere set forth herein.
No municipality may impose a tax underthis Section unless the municipality also imposes a tax at the samerate underSection 8-11-1.3 ofthis Code.5/8·11·1.4. Non-Home Rule Municipal Service Occupation

..., IL ST CH 65 § 518-11-1.4

Persons subject "to any tax imposed pursuant to the authority granted in this Section may reimburse themselves for their serviceman's tax liability hereunder by separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with State taxwhich servicemen are authorized to collect underthe Service Use Tax Act, 12 pursuant to such bracket schedules as the Departmentmay prescribe. \Vhcnever the Department determines that a refond should be made under this Section to a claimant instead ofissuing credit memorandum, theDepartment shall notifythe State Comptroller,\Vito shall causethe orderto be drawn forthe amountspecified. and to the personnamed, in such notification from the Department. Such refund shall be paid by the State Treasurer out ofthe municipal retailers' occupationtax fund.
TheDepartment shall forthwith payoverto the State Treasurer, ex officio, as trustee, all taxes andpenaltiescollectedhereunder.
As soon as possible after the first day ofeach month, beginning January 1, 2011, upon certification of the Department of Revenue,the Comptroller shall ordertransferred, and the Treasurer shall transfer, to the ST ARBonds Revenue Fund the local sales tax increment, as defined in the Innovation DevelopmentandEconomyAct, collectedunderthis Sectionduringthe second preceding calendarmonth for sales within a STARbond district.
After the monthly transfer to the ST AR Bonds Revenue Fund, on or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the disbursement ofstated sums ofmoney to named municipalities, the municipalities to be those from which suppliers and servicemen have paid taxes orpenalties hereunder to the Department during the second preceding calendar month. The amount to be paid to each municipality shall be the amount (not including credit memoranda) collected herelUlder during the second preceding calendar month by the Department, and not including an amount equal to the amount ofrefunds made during the second preceding calendar month by the Department on behalf of such municipality, o.nd notincluding any amounts that are transferred tothe STARBonds ReYenue Fund. Within 10 days after ( receipt, bythe Comptroller, ofthe disbursementcertificationto the municipalities andthe General RevenueFund, providedfor in this Section to be given to the Comptroller by the Department, the Comptroller shall cause the orders to be drawn for the respective amounts in accordance with tl1e directions contained in such certification.
The Department ofRevenue shall implement this amendatory Act ofthe 91st General Assembly so as to collect the tax on and after January I, 2002. Nothing in this Section shall be constrned to authorize a municipality to impose a tax upon the privilege ofengaging in any business which under the constitution ofthe United States may notbe madethe subject oftaxation by this State.
As used 

### in this Section, ·'municipal" or "municipality" means or refers to a city, village or incorporated town, including an incorporated town whichhas superseded a civil township.
This Section shallbe known and maybe cited as the "Non-Home Rule Municipal Service Occupation Tax Act".

Credits Laws 1961, p. 576, § 8-11-1.4, addedbyP.A. 85-1135, Art. II,§ 1, eff. Jan. L 1990. AmendedbyP.A. 86-928, Art. 3, 

### § 1, eff. Jan. L 1990; P.A. 86-1475, An. 5, § 5-6, cff. Jan. 10, 1991; P.A. 87-205, Art. 4, § 4-1, cff. Jan. ), 1994; P.A. 87-895, Art. 4. § 4-5, eff. Aug. 14, I992. Re-enacted by P.A. 9 !-51. § 150, eff. June 30, 1999. Amendedby P.A. 91-649, § 5. eff. Jan. l, 2000; P.A. 92-739,**~** 5, cff. Jan. L 2003; P.A. 94-679. § 5, eff. Jan. I. 2006; P.A. 96-939, §70, eff. June 24, 2010; P.A. 96-1057. § 

### 5. eff. July 

### 14, 2010; P.A. 97-333, § 

### 165. df. Aug. 12. 2011; P.A. 97-837. § 5. dT. July 20, 2012. 

### Formerlylll.Rev.Sta,t.1991, ch. 24, ~: 8- I1-1.4.

### ( 5/8-11 ·1.4. Non-Home Rule Municipal Service Occupation

..., IL ST CH 65 § 518-11·1.4

Footnotes 35ILCS 1201 cl~cq. 2 35ILCSJ1YlcLscq. 3 35/LCSJl52.115'2a,andll5'3to1153-50. 4 35 ILCS 115'4. 5 35 lLCS 115 5, 115·1. and 115'8. 

### 6 35!LCS1159. 

### 7 35JLCS!l510,115ll.l1512. 8 35 ILCS 120 2b. 9 35 JLCS 115 13. 10 35 ILCS 115 15. 115 16, I 15'17. 115 18. 115 19 and 115'20. l l 35 ILCS 735 3-7. 12 35 ILCS 110·1 cl seq. 65 I.L.C.S. 5/8-11-1.4, IL ST CH 65 § 5/8-11-1.4 Currentthrough P.A. 99-393 ofthe 2015 Reg. Sess.

### (518-11-1.4. Non-Home Rule Municipal 

### Service Occupation

..., IL ST CH 65 § 5/8-11-1.4



### \Vest's Smith-Hurd 

### Illinois Compiled Statutes

### Annotated

Chapter 65. Municipalities

Act 5. 

### Illinois Municipal Code (Refs & 

### Annas)

Article 8. Finance Dh-ision 11. Certain Rewnue

### Taxes 65 ILCS 5/8-11-1.4 

### Formerlycited as ILSTCH 24 ,S-11-1.4 5/8-11-1+ 

### :'.\'on-Home Rule Municipal Sen ice Occupation

### Tax Act EffectiYe: July 20, 2012 

### Currentness**~** 

### 8-11-1.4. Non-Home Rule ?l-1unicipal Service OccupationTax Act. The corporate authorities ofanon-home mlemunicipality may impose a tax upon all persons engaged. in such municipality, in the business ofmaking sales ofservice for expenditure on public infrastructure or for property tax relieforboth as defined in Section 8-11-1.2 ifapproved by referendum as provided in Section 8-11-1.1, ofthe selling price ofall tangible personal property transferred by such servicemen either in the form of tangible personalproperty or in the form ofrea\ estate as an incident to a sale ofservice. lfthetax is appro\'ed by referendum on or after July 14, 2010 (the effective date ofPublic Act 96¥1057), the corporate authorities ofanon-home mle municipality may, until December 31, 2020, use the proceeds ofthe tax for expenditure on municipal operations, in addition to or in lieu ofany expenditure on public infrastmctme or for propertytax relief. The tax imposed may not be more than I% and may be imposed only in I/4'% 

### increments. The tax may not be imposed on the sale of food for human consumption that is to be consumed ( offthe premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and prescription and nonprescriptionmedicines, dmgs, medical appliances, and insulin, urine testing materials, syringes, and needles used by diabetics. The tax imposed bya municipalitypursuant to this Section and all civil penalties that may be assessed as an incident thereofshall be collected and enforced by the State Department of RcYenue. The certificate ofregistration which is issued by the Department to a retailer under the Retailers' Occupation Tax Act 1 or under the Service Occupation Tax Act2 

### shall pem1it such registrant to engage in a business which is taxable under any ordinance or resolution enacted pursuantto this Section without registering separately with the Depmtmentunder such ordinance orresolution or under lhis Section. The Department shall haYe full powerto administer and enforce this Section; to collect all taxes and penalties due hereunder; to dispose oftaxes and penalties so collected in the manner hereinafterprovided, and to determine all rights to credit memoranda mising on account ofthe erroneous payment oftax or penaltyhereunder. In the administration of, and compliance with, this Section the. Department and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities,powers and duties, andbe subject lo the same conditions,restrictions, limitations,penalties and definitions ofterms, and employ the same modes ofprocedure, as are prescribed in Sections Ia- l, 2, 2a, 3through 3-50 3 (in respect to all provisions therein other than the State rate oftax), 44 (except that the reference to the State shall be to the taxing municipality), 5, 7, 85 

### (except that the jurisdiction to which the tax shall be a debt to lhe extent indicated in that Section 8 shall be the taxing municipality), 9(, (except as to the disposition oftaxes and penalties collected, and except that the ren1rned merchandise credit 

# ' for this municipal tax may not be taken against any State tax), 10, 11, 12 (except the reference U1erein to Section 2b ofthe Retailers' Occupation Tax Act) 8
, 13 9 (

### except that any reference to the State shall mean the taxing municipality), the first paragraph ofSection )5, 16, 17, 18, i9 and 20 ofthe Service Occupation Tax Act JO 

### and Section 3-7 ofthe Uniform Penalty and InterestAct, 11 as fully as ifthose provisions were set forth herein. No municipality may impose atax under this Sectionunless the municipality also imposes a tax at the same rate under Section 8-11-1.3 ofthis Code.s:B-11-1.4. Non-Home Rule Municipal Service Occupation

..., IL ST CH 65 § 518·11 ·1.4

Persons subject to any tax imposed pursuant to the authority granted in this Section may reimburse themselves for their serviceman's tax liability hereunder by separately stating such lax as an additional charge, which charge may be stated in combination, in a single amount, with State tax which servicemen are authorized to collectunderthe Service Cse Tax Act, 1**~** pursuant to such bracket schedules as the Departmell! may prescribe. \VheneYer the Department detem1ines that a refund should be made under this Section to a claimant instead ofissuing credit memornndum,the Department shall notifythe StateComptroller,who shall causethe orderto be drawn

### for the amount specified, and to the person named. in such notification from the Department. Such refund shall be paid by the State Treasurerout ofthe municipal retailers' occupation tax fund.
The Department shall forthwithpayo\'erto the State Treasurer. exofficio, as trnstee, all taxes and penalties collectedhereunder.
As soon as possible after the first day of each month, beginning January 1, 2011, upon certification of the Department of Re\·enue. the Comptroller shall ordertransferred, and the Treasurer shall transfer, to the ST AR Bonds Revenue Fund the local salestax increment, as defined inthe Innovation Developmentand EconomyAct, collectedunderthis Sectionduringthe second preceding calendarmonth for sales within a STAR bond district.
After the monthly transfer to the ST AR Bonds Re\'enue Fund, on or before the 25th day of each calendar month, t11e Department shall prepare and ce11ify to the Comptroller the disbursement ofstated sums ofmoney to named municipalities. the municipalities to be those from which suppliers and servicemen have paid taxes or penalties hereunder to the Department during the second preceding calendar month. The amount to be paid to each municipality shall be the amount {not including credit memoranda) collected hereunder during the second preceding calendar monthby the Department, and not including an amount equal to the amount of refunds made during the second preceding calendar month by the Depa1tmcnt on behalfof such municipality, and not including any amounts that are transferred to the ST 

### AR Bonds Revenue Fund. Within 

### IO days after ( receipt,bythe Comptroller, ofthe disbursementcertificationto the municipalities and the General Revenue Fund, p1"0\·ided for in t11is Section to be given to the Comptrol!er by the Department, the Comptroller shal! cause the orders to be drawn for the respective amounts in accordance with the directions contained in such certification.
The Department ofReve1me shall implement this amendatoty Act of the 91 st General Assembly so as to collect the tax on and afterJanuary 1, 2002. Nothing in this Section shall be constrned to authorize a municipality to impose a tax upon the priYilege ofengaging in any businesswhich underthe constitution ofthe United States maynot be made the subject oftaxation by this State.
As used in this Section, "municipal'' or "municipalitf' means or refers to 

### a city, village or incorporated town, including an incorporated town which has superseded a civil township.
This Section shall be known andmay be cited as the ''Non-Home Rule Municipal Service Occupation Tax Act".

Credits laws 1961, p. 576, §8-11-1.4. addedby P.A. 85- J 135. Art. ll.

# *1, eff. Jan. l. l990. Amended by P.A. 86-928. Art. 3, § 1. eff. Jan. l. 1990; P.A. 86-1475. Art. 5. § 5-6. eff. Jan. JO, 1991; P.A. 87-205. Art. 4. § 4-\, eff. Jan. L 1994; P.A. 87-895. An. 4. S 4-5. eff. Aug. 14, 1992. Re-enacted by P.A. 91-5!, § 150, 

### <:ff. June 30. 1999. Amendedby P.A. 91-649, §5. cff. Jan. l. 2000; P.A. 92-739. § 5. eff. .Tau. I. 2003: P.A. 94-679. § 5. cff. Jan. I. 2006; P.A. 96-939. S 70. cff. June 24, 2010; P.A. 96-1057. § 5. eff. July 14. 2010; P.A. 97-333, § 16:'-. eff Aug. 12, 2011; P.A. 97-837, § 5.eff. July 20. 2012. 

### formerly !ll.Rcv.Sta!.l991. ch. 24, •j 8- l l-1.4.

### ( 518-11-1.4. Non-Home Rule Municipal Service Occupation

..., IL ST CH 65 § 518-11-1.4

Footnotes 35 !LCS 120 1ct sccj. 

### 2 35 !LCS 115 I cl ~cq.

_, 35!LCS115'.!.115'2:i.andll53to1153-50. 4 351LCS!l54

. .5 35!LCS 115 5, 115 7,and 115 S. 6 35!LCSl159. 7 35ILCS l15 JO. ll5 ll.11512. 

### 8 35 ILCS L~(J 2b. 9 J51LCS115'\3. 1() 35 ILCS l l5 15. I 15 l(,. 115 P. 115 1R. 115 l 'i and 1J5 ::o. 11 35 ILCS 735,J-7. 

### 12 35 !LCS l 

### W l t>t ,eq. 65 T.L.C.S. 5/8-11-1.4. IL ST CH 65 

### § 5.'8-1 !-1 A Cunentthrough P.A. 99-487 ofthe-2015 Reg. Sess.

## (( 65 ILCS 518-11-1.6, 65 !LCS 518-11-1.6



### 65 ILCS 5/8-11-1.6 

### WEST'S SMITH-HURD ILLINOIS COMPILED STATUTESANNOTATED CHAPTER65. MUNICIPALITIES ACT 5. ILLINOIS MUNICIPAL CODE ARTICLE 

### 8. FINANCE DIVISION 11. CERTAIN REVENUETAXES
5/8-11-1.6. Municipal retailers occupation tax

§ 8-11-1.6. Municipalretailers occupationtax. The corporate authorities ofa non-home mle municipalitywith apopulation of more than 20.000butless than 25,000 that has, priorto January 1, 1987, established a Redevelopment ProjectArea that has been certified as a State Sales Tax Boundary and has issued bonds or othenvise incurred indebtedness to pay for costs in excess of S5,000,000, which is secured in part by a tax increment allocation fund, in accordance with the provisions ofDivision 11-74.4 ofthis Code 1 may, by passage ofan ordinance, impose a tax upon all persons engaged in the business ofselling tangible personal property, other than on an item oftangible personal property that is titled and registered by an agency ofthis State's Government, at retail inthe municipality. If imposed,the taxshall onlybe imposed in .25% increments oft he gross receipts from such sales made inthe course ofbusiness. Any tax imposedbya municipality underthis Section and all civil penalties that may be assessed as an incident thereofshal1 be collected and enforced by the State Department ofRevenue. An ordinance imposing or discontinuing a tax here1mder or effecting a change in the rate thereofshallbe adopted and a certified copy thereoffiled with the Department on orbefore the first day ofOctober, whereupon the Department shall proceed to administer and enforce this Section as ofthe first day ofJanuary next following such adoption and filing. The certificate ofregistration that is issued by the Department to aretailerunderthe Retailers' Occupation Tax Act 2 shall pem1it the retailer to engage in a business that is ( taxable under anyordinance or resolution enactedunder this Section withoutregistering separately ,vith the Department under the ordinance orresolution orunder this Section. The Department shall have full powerto administer and enforce this Section, to collect all taxes andpenalties due hereunder, to dispose oftaxes andpenalties so collected in the manner hereinafterprovided, and to determine all rights to credit memoranda, arising on account ofthe eIToneous payment oftax or penalty hereunder. In the administration of, and compliance with this Section, the Department and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities, powers, and duties, and be subject to the same conditions, restrictions, !imitations, penalties, and definitions oftem1s, and employ the same modes ofprocedure, as are presc1ibed in Sections I, 1 a, la-I, ld, le, If, Ii, lj, 2 through 2-65 (in respect to all provisions therein other than the State rate oftax), 2c, 3 (except as to the disposition oftaxes and penalties collected), 4, 5, Sa, Sb, 5c, 5d, 5e, Sf, 5g, 5h, 5i, 5j, 5k, 51, 6, 6a, 6b, 6c, 7, 8, 9, JO, 11, 12 and 13 ofthe Retailers' Occupation Tax Act 3 and Section 3-7 ofthe Uniform Penalty and Interest Act 4 as fully as ifthose provisions were set forth herein.

Persons subject to any tax imposed under the authority granted in this Section, may reimburse themselves for their seller's tax liability hereunder by separately stating the tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax which sellers are required to collectunder the Use Tax Act, 5 pursuant to such bracket schedules as the Department mayprescribe.

Whenever the Department determines that a refund should be made under this Section to a claimant, instead of issuing a credit memorandum, the Department shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified, and to the person namedin the notification from the Department. The refund shall be paidbythe State Treasurer out ofthe Non-Home Rule Municipal Retailers' Occupation Tax Fund. The Departmentshall forthwith payoverto the StateTreasurer, ex officio, as trustee, all taxes andpenaltiescollectedhereunder. On orbefore the 25thday ofeach calendarmonth, the Department shall prepare and certifyto the Comptrollerthe disbursement ofstated sums ofmoneytonamed municipalities, the municipalitiesto be those from whichretailers have paidtaxes orpenalties hereunder to the Department during the second preceding calendar month. The amount to be paid to each municipality shall { be the amount (not including credit memoranda) collected hereunder during the second preceding calendar month by the Department plus an amount the Department detem1ines is necessaiy to offset any amounts that were erroneously paid to a65 ILCS 518-11-1.6. 65 ILCS 5/8-11-1.6

different taxing body. and not including an amount equal to the amount ofrefunds made during the secondpreceding calendar month by the Department on behalf ofthe municipality, and not including any amount that the Department detem1ines is necessary to offset any amounts that were payable to a different taxing body but were erroneously paid to the municipality. Within 10 days after receipt by the Comptroller ofthe disbursement certification to the municipalities provided for in this Section to begiven to the Comptrollerby the Department, the Comptroller shall cause the orders to be dn'l\m for the respective amounts in accordance with the directions contained in the certification.

Forthe purpose ofdetermining the local governmental unit whose tax is applicable, a retail sale by aproducer ofcoal or other mineral mined in Illinois is a sale at retail at the place where the coal or other mineral mined in lllinois is extracted from the earth. This paragraph does not apply to coal or other mineral when it 

### is delivered or shipped bythe se!ler tothe purchaser at a point outside Illinois so that the sale 

### is exempt under the federal Constitution as a sale 

### in interstate or foreign commerce.

Nothing in this Section shall be construed to authorize a municipality to impose a tax upon the privilege ofengaging in any business which underthe constitution ofthe United States may not be made the subject oftaxation by this State.

When certifying the amount ofa monthly disbursement to a municipality under this Section, the Department shall increase or decrease the amount by an amount necessary to offset any misallocation ofprevious disbursements. The offset amount shall be the amount enoneously disbursed within the previous 6 months from the time a misallocation is discovered. Asused in this Section, "municipal" and "municipality"means 

### acity, village, or incorporatedtown, including an incorporated town that has superseded a civil township. 1994 Supplemental Credit(s) Laws 1961, p. 576, § 8-11-1.6, added by P.A. 88-334. §5, eff. Aug. 13, 1993.

1 65 JLCS 5/11-74.4-1 ct seq. 

## '

- 35 ILCS 120/1 ei seq.
3 35 ILCS 120/J, 120/la, 120/la-l, 120/ld, 120/le, 120/lf, 120/li, !20/ij, 120/2 through 120/2-65, 120/2c, 120/3, 120/4,

120/5, 120/5a, 120/5b, 120/5c, l20/5d, 120/5e, 120/5f, 120/5g, 120/5h, 120/5i, 120/5j, 120/5k, 120/51, 120/6, 120f6a, 120/6b, 120/6c, 120/7, 120/8, 120/9, 120/10, 120/J I, 120112 and 120/13.
4 35 ILCS 735/3-7. 5 35 ILCS 105/1 et seq.

I n.l,fllo,ui,,,;.t**~** i' ' 

### (

(518-11-1.6. Non-home rule municipal retailers occupation"" JL ST CH 65 § 518-11-1.6



### \Vest's Smith-Hurd Illinois Compiled StatutesAnnotated Chapter65. Municipalities

Act 5. Illinois Municipal Code (Refs & 

### Annas)

Article 

### 8. Finance Di\':ision 11. 

### Certain RevenueTaxes 65 ILCS 

### 5/8-11-1.6 5/8-11-1.6. Non-home rule municipal retailers occupation tax; municipalities between :w.ooo and 25,000 Effecth·e: July 31, 2015 CutTentness
§ 8-! 1-l.6. Non-home rnle municipal retailers occupation tax; municipalities between 20,000 and 25,000. The corporate authorities ofanon-homerule municipality with apopulation ofmore than20,000 but less than 25,000 that has, priorto January 1, 1987,established a RedevelopmentProjectAreathat hasbeencertified as a State SalesTax Boundary and has issuedbonds or othenvise incurred indebtednessto pay for costs in excess ofS5,000,000, which is secured in part by a tax increment al!ocation fund, in accordance with the provisions ofDivision 11-74.4ofthis Code I may, by passage ofan ordinance, impose a tax upon all persons engaged in the business ofsellingtangible personal property. otherthan on an itemoftangible personal propertythat is titled and registered by an agency ofthis State's Government, atretail in the municipality. This tax maynotbe imposed onthe sales offood for human consumption that is to be consumed offthe premises where it is sold (other than alcoholic beverages, soft drinks, and food that has beenpreparedforimmediate consumption) andprescription and nonprescription medicines, drugs, medical appliances and insulin, urine testing materials. syringes, and needles used by diabetics. 

### Ifimposed, t]1e tax shall only ( be imposed in .25% increments ofthe gross receipts from such sales made in the course ofbusiness. Any tax imposed by a municipality under this Sec. and all civil penalties that may be assessed as an incident thereofshall be collected and enforced by the State Department ofRevenue. An ordinance imposing a tax hereunder or effecting a change in the rate thereofshall be adopted and a certified copy thereoffiled withthe Departmenton orbeforethe first day ofOctober, whereuponthe Department shall proceed to administer and enforce this Section as ofthe first day ofJanumy next following such adoption and filing. The certificate ofregistration that is issued by the Department to a retailer under the Retailers' Occupation Tax Act2 shall permit the retailer to engage in a business that is taxable under any ordinance or resolution enacted under this Section without registering separately with the Department nnder the ordinance orresolution orunder this Section. The Department shall have full power to administer and enforce this Section, to collect all taxes and penalties due hereunder, to dispose oftaxes and penalties so collectedin the mannerhereinafterproYided, and to detennine all rights to credit memoranda, arising on accountof the erroneous payment oftax orpenaltyhereunder. ln the administration of, and compliance withthis Section, the Department and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities, powers, and duties, and be subject to the same conditions, restrictions, limitations, penalties, and definitions ofterms, and employthe same modes ofprocedure, as are prescribed in Sections I, la, Ia-1, Id, Ie, If, Ii, l j, 2 through 2-65 3 (in respect to all provisions therein other than the State rate oftax), 2c. 34 (except as to the disposition oftaxes and penalties collected), 4. 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5/, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 ofthe Retailers' Occupation Tax Act 5 and Section 3-7 of the Uniform Penalty and Interest Act6 as fully as ifthose provisions were set forth herein.
A tax may not be imposed by a municipality under this Section unless the municipality also imposes a tax at the same rate under Section 8-11-1.7 ofthis Act.
Persons subjectto any tax imposed under the authority granted 

### in this Section, may rcimbun;c themselves for their seller's tax liability hereunderby separately stating the tax as an additional charge. which charge may be stated in combination. in a single518-11-1.6. Non-home rule municipal retailers occupation

..., IL ST CH 65 § 5/l:l-11-1.6

amount. with State tax which sellers are required to collect under the Cse Tax Act. pursuant to such bracket schedules as the Departmentmay prescribe.
Whenever the Department determines that a refund should be made under this Section to a claimant, instead ofissuing a credit memorandum. the Department shall notify the State Comptroller.who shall causethe orderto be drawn forthe amount specified, and to the person named in the notification from the Oepa1tment. The refund shall be paid by the State Treasurer out ofthe Non-Home Rule Municipal Retailers' Occupation Tax Fund, which is hereby created. The Department shall forthwith pay o\'erto the State Treasurer. ex officio, as trnstee, all taxes and penaltiescollected hereunder.
As soon as possible after the first day of each month, beginning January 

### I, 201 L upon certification of the Ocpm1ment of Revenue, the Comptroller shall ordertransferred. and the Treasurer shall transfer, to the STAR Bonds Ren:nue Fund the local sales tax increment. as defined intheJrn10·.-ation Development and Economy Act, collectedunderthis Sectionduring the second preceding calendarmonth for sales within a STARbond district.
After the monthly trnnsfer to the STAR Bonds Re\·enue Fund, on or before the 25th day of each calendar month, the Department shatl prepare and certify to the Comptroller the disbursement ofstated sums ofmoney to named municipalities, the municipalities to be those from which retailers ha\·e paid taxes or penalties hereunderto the Department during the second preceding calendar month. The amount to be paid to each municipality shall be the amount (not including creditmemoranda) collectedhereunder during the second preceding calendarmonthby the Departmentplus an amountthe Departmentdete11niues is necessary to offset any amounts that were erroneously paidto a different taxing body. and not including an amount equal to the amount ofrefunds made during the second preceding calendarmonthby the Department onbehalfofthe municipality, and not including any amount that the Department determines is necessary to offset any amounts that were payable to a different taxing body but were erroneously paid to the municipality, and not including any amounts that are transferred to the STAR Bonds Revenue Fund. Within !0 days after receipt by the Comptroller ofthe disbursement certification to the municipalities ( provided for in this Section to be giYen to the Comptroller by the Department, the Comptroller shall cause the orders to be drawn for the respecti\'e amounts in accordance with the directions contained in the certification.
For thepUIJJOse ofdeterminingthe local govemmental unit whose tax is applicable, a retail sale by a producer ofcoal or other mineral mined in Tllinois is a sale at retail at the place \,;·here the coal or othermineral mined in Illinois is extracted from the caith. This paragraph does nol apply to coal or other mineral when it is delivered or shipped by the seller to thepurchaser at a point outside Illinois so that the sale is exempt under the federal Constitution as a sale in interstate or foreign commerce. Nothing in this Section shall be constrned to authorize a municipality to impose a tax upon the privilege ofengaging in any business which underthe constitution ofthe United States may notbe made the subject oftaxation bythis State. When certifying the amount ofa monthly disbursement to a municipalityunder this Section, the Department shall increase or decrease the amountby an amount necessary to offset any misallocation ofprevious disbursements. The offset amount shallbe the amount erroneously disbursed within the previous 6 months from the time 

### a misallocation is discovered.
As used 

### in this Section, "municipar· and "municipality" means 

### a city, village, 

### or incorporated town, including an inc011Jorated town that has superseded a ci\'il township.

Credits Laws 1961, p. 576. § 8-11-1.6, added by P.A. 8~-334,

# * 5, eff. Aug. 13, 1993. Amended by P.A. 89-399. § 25, eff. Aug. 20, 1995: P.A. 96-939. § 70. eff. fone 24. 

### 201 O: P.A. 99-217,**~** 25, eff. July 31, 2015.



### ,,, '.

### ( 5/8-11-1.6. Non-home rule municipal retailers occupation

.... IL ST CH 65 § 5,13.11-1.6

Footnotes 65 ILCS 5 11-74.4-1 ct ,cy 

### 2 .35 !LCS l20 I ct ,;c<.J. 3 35JLCS 120.1, ]21) la.121) la-1.12010.120 k 120 lf.120 Ii. J20.lj.1202to 1202-65 4 35 JLCS l21)'2c. 120 3 5 35 ILCS 120 4. 120 5. 120 5a. 12!l 5b. 120 5c. 120 '.'d. 120 k 120 '.'C 120 5g.. 120 Sh. 120 5i. 120'5j. 120 SL 120 51. 120 6. 12\l 6a. 120 6b, 120 fie. 120 7 • J21J S. 120 9. J20'JO. 120 I!. 120 12 and J:'.{)·13. 6 .35 ILCS 735 3-7. 7 .35 ILCS I05 I et se<.J. 65 l.LC.S. 518-l J-l.6. IL ST Cl-I 65**~** 518-11-1.6 Currentthrough P.A. 99-487 ofthe 2015 Reg. Sess.(



## ( 65 fLCS 518-11-1.7. 65 ILCS 5i8-11-1.7



### 65 ILCS 5/8-11-1.7 V\lEST'S SMITH-HURD ILLINOIS COMPILED STATIITESANNOTATED 

### CHAPTER 65. MUNICIPALITIES ACT5. ILLINOIS MUNICIPAL CODE ARTICLE 8. FINANCE 

### DIVISION 11. 

### CERTAlN REVENUE TAXES
5/8-1 

### !-1.7. Municipal service occupation tax

§ 8-11-1.7. The corporate authorities ofa non-home rule municipality with a population ofmore than 20,000 but less than 25,000 as determined by the last preceding decennial census that has, prior to January l. 1987, established a Redevelopment Project Area that has been certified as a Slate Sales Tax Boundary and has issued bonds or otherwise incurred indebtedness to pay for costs in excess ofS5,000,000, which is secured in part by a tax increment allocation fund, in accordance with the provisions ofDivision 11-74.7 1 ofthis Code may, by passage ofan ordinance, impose a tax upon all persons engaged in the municipality in the business ofmaking sales ofser;ice. Ifimposed, the tax shall only be imposed in .25% increments ofthe sellingprice ofall tangible personalpropertytransferred bysuch servicemeneitherin the fonn oftangible personalproperty or in the fonn ofreal estate as an incident to a sale ofservice. The tax imposed by a munic.ipality under this Section and all civil penalties that may be assessed as an incident thereofshall be collected and enforcedby the State Department ofRevenue. An ordinanceimposingordiscontinuing atax hereunderoreffecting achange in the rate thereofshall be adoptedand a certifiedcopy thereoffiled with the Department on orbefore the first day ofOctober, whereuponthe Depa1tment shall proceed to administer and enforce this Section as ofthe first dayofJanumynext following such adoption and filing. The certificate ofregistrationthat is issued bythe Departmentto aretailerunderthe Retailers' Occupation Tax Act 2 orunder the Service Occupation Tax Act 3 shall pem1it the regisn·ant to engage in a business that is taxable under any ordinance orresolution enacted under this Section without registering separately with the Department under the ordinance or resolution or under this Section. The Department shall have full power to administer and enforce this Section, to collect all taxes and penalties due hereunder, to dispose of taxes and penalties so collected in a manner hereinafter provided, and to detennine all rights to credit memoranda arising on account ofthe erroneous payment oftax or penalty hereunder. In the administration ofand compliance with this Section, the Department and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities, powers, and duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions oftenns, and employ the
same modes ofprocedure, as are prescribed in Sections Ia-1, 4 2, 2a, 3through 3-50 (in respect to all provisions therein other than the State rate oftax), 4 (except that the reference to the State shall be to the taxing municipality), 5. 7, 8 (except that the jurisdiction to which the tax shall be a debt to the extent indicatedin that Section 8 shall be the taxing municipality), 9 (except as to the disposition oftaxes andpenalties collected, and except that the returned merchandise credit for this municipaltax may not be taken against any State tax), lO, 11, 12, 5 (except the reference therein to Section 2b ofthe Retailers' Occupation Tax Act 6), 13 (except that any reference to the State shall mean the taxing municipality), the first paragraph ofSections 15, 16, 17, !8, 19, and 20 ofthe Service Occupation Tax Act 7 and Section 3-7 ofthe Unifonn Penalty and Interest Act, 8 as fully as ifthose pro\'isions were set fmth herein.

Person subject to m1y tax imposed underthe authority granted in this Section may reimburse themselves for their servicemen's tax liability hereunder by separately stating the tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax that servicemen are authorized to co!lect under the Service Use Tax Act, 9 under such bracket schedules as the Depa11ment may prescribe.

Whenever the Department determines that a refund shouldbe made under this Section to a claimant instead ofissuing credit memorandum, the Department shail notifythe State Comptroller,who shall cause the orderto be drawnfortheamountspecified, and to the person named, in such notification from the Department The refund shall be paid by the State Treasurer out ofthe Municipal Retailers' Occupation Tax Fund.65 ILCS 518-11-1.7, 65 ILCS 518-11-1.7

TheDepartmentshallforthwith payovertothe State Treasurer,ex officio, as trustee, all taxes andpenaltiescollectedhereunder. On orbefore the 25thday ofeach calendarmonth. the Department shall prepare and certifytothe Comptrollerthe disbursement ofstated sums ofmoney to namedmunicipalities, the municipalities to be thosefrom which suppliers and servicemen have paid taxes or penalties hereunder to the Department dming the second preceding calendar month. The amount to be paid to each municipality shall be the amount (not including credit memoranda) collected hereunder during the second preceding calendar month by the Depmtment, and not including an amount equal to the amount of refi.mds made during the second preceding calendar month by the Department on behalf ofsuch municipality. Within 10 days after receipt by the Comptroller ofthe disbursement certification to the municipalities and the General Revenue Fund, provided for in this Section to be given to the Comptroller by the Depai1ment. the Comptroller shall cause the orders to be drawn for the respectiye amounts in accordance with the directions contained in the certification.

Nothing in this Section shall be constrned to authorize a municipality to impose a tax upon the privilege ofengaging in any business 

### V,·"hich underthe constitution ofthe L'nited States may 

### not be made the subject oftaxation by lhis State. 1994 Supplemental Credit(s) Laws 1961. p. 576, § 8-11-1.7, added by P.A. 88-334, § 5. eff. Aug. 13, 1993.

1 So in enrolledbill. Probably should read "Division 11-74.4". (65 lLCS 5/l l-74.4-1 et seq.). 2 35 ILCS 1201

### 1et seq. 3 35 ILCS 115/1 et seq.
4 So in enrolled bill. 5 35 ILCS 115/2, l !5/2a, 115/3 through 115/3-50, llS/5, 11517, 115/8, 115/9, 115/10, 115/11, 115/12. 6 35 ILCS I20/2b. 7 35 ILCS 115/15, 115/16, l !5/17, 115118. 115/19 and 115/20. 8 35 JLCS 73513-7. 9 35 lLCS 110/1 et seq.

i •, I 1 11, <: • '" l 

### (518-11-1.7. Non-home rule municipal service occupation

..., IL ST CH 65 § 518-11-1.7



### ( ·west's Smith-Hurd Illinois Compiled StatutesAnnotated Chapter 65. Munieipalities

Act 5. Illinois MunicipalCode (Refs & 

### Annas)

Article 

### 8.Finance

Di,ision 

### 11. Cc>rtain ReYenuc Taxes 65 ILCS 

### 5/8-11-1.7 5/8-11-1.7. :::on-homerule municipal senice occupation tax; 

### municipalities between 20.000 and 

### 25,000 Effoctiw: July 13, 2012 Currentness
§ 8-1 l-1.7. Non-home rule municipal service occupation tax: municipalities between 20,000 and 25,000. The corporate authorities ofa non-home rnle municipality with a population ofmore than 20,000 but less than 25,000 as determinedby the last preceding decennial census that has, prior to January I, 1987, established a Redevelopment Project Area that has been certified as a State Sales Tax Boundary and has issued bonds or otherwise incurred indebtedness to pay for costs in excess of $5,000,000, which is secured in partbyataxincrement allocation fund, in accordance withtheprovisions ofDivision 11-74.4 1 ofthis Code may, by passage ofan ordinance, impose a tax upon all persons engaged in the municipality in the business of making sales ofservice. Ifimposed, the tax shall onlybeimposed in .25% increments ofthe sellingprice ofall tangible personal property transferred by such servicemen either in the fonn oftangible personal property or in the fonn ofreal estate as an incident to a sale ofservice. This tax may not be imposed on the sales offood for human consumption that is to be consumed offthe premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate ( consumption) and prescription and nonprescription medicines, drngs, medical appliances and insulin, urine testing materials, syringes, and needles used by diabetics. The tax imposed by a municipality under this Sec. and all civil penalties that may be assessed as an incident thereofshall be collected and enforcedby the State Department ofRevenue. An ordinance imposing a tax hereunder or effecting a change in the rate thereofshall be adopted and a certified copy thereoffiled with the Department on orbefore the first day ofOctober, whereupon the Department shall proceed to administer and enforce this Section as ofthe first day ofJanua1y next following such adoption and filing. The certificate ofregistration that is issued by the Department to a retailer under the Retailers' Occupation Tax Act~ or under the Service Occupation Tax Act 3 shall pem1it the registrant to engage in a business that is taxable under anyordinance orresolution enactedunderthis Sectionwithout registering separately withthe Departmentunder the ordinance orresolution orunderthis Section. The Department shall havefull powerto administer and enforce this Section, to collect all taxes and penalties due hereunder, to dispose oftaxes and penalties so collected in a manner hereinafter provided, and to detennine all rights to credit memoranda arising on account ofthe erroneous payment oftax or penalty hereunder. In the administration ofand compliance with this Section, U1e Department and persons who are subject to U1is Section shall have the same rights, remedies, privileges, immunities, powers, and duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions oftenns, and employ the same modes ofprocedure, as are prescribed in Sections la-1, 2, 2a, 3 through 3-504 (in respect to all provisions therein other than the Stale rate oftax), 4 5 (except that the reference to the State shall be to the taxing municipality), 5, 7, 86 (except that thejurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the taxing municipality), 9 7 (except as to the disposition of taxes and penalties collected, and except that the returned merchandise credit for this municipal tax may not be taken against any State tax), JO, l l, 12, fl (except the reference therein to Section 2b ofthe Retailers' Occupation Tax Act'\ 13 JO (except that any reference to the State shall mean the taxing municipality), the first paragraph ofSections 15, 16, 17, 18, 19, and 20 of the Service Occupation Tax Act 11 and Section 3-7 ofthe Uniform Penalty and Interest Act, 12 as fully as 

### ifthose provisions were set forth herein.



### r;"',,5.18-11 "1.7. Non-home rule municipal service occupation

..., lL ST CH 65 § 5!8"11-1.7

A tax may not be imposed by a municipality under this Section unless the municipality also imposes a tax at the same rate under Section 8-11-1.6 ofthis Act. (
Person subject to any tax imposed underthe authority granted in this Section may reimburse thernsdves for their servicemen's tax liability hereunder by separately stating the tax as an additional charge, which charge maybe stated in combination, in a single amount, with State tax that ser\"icemen are authorized to co!lect underthe Service Use Tax Act, 

### u under such bracket schedules as the Department mayprescribe. \\'hene,·er the Department dctennines that a refund should be made under this Section to a claimant instead ofissuing credit memorandum, the Department shall notify the StateComptroller,who shall causethe order to be drawn forthe amountspecified. and to the person named. in such notification from the Department. The refund shall be paid by the State Treasurer out ofthe Non-Home Rule Municipal Retailers' Occupation Tax Fund.
The Department shall forthwith pay overto the State Treasurer,ex officio, astmstee, all taxes andpenalties collectedhereunder.
As soon as possible after the first day of each month, beginning January 

### 1. 2011, upon certification ofthe Department of Revenue, the Comptroller shall ordertransferred, and the Treasurer shall transfer, to the STAR Bonds Revenue Fundthe local salestax increment, as defined in the InnovationDevelopment and EconomyAct, collectedunderthis Sectionduringthe second preceding calendarmonth for sales within a ST ARbond district.
After the monthly transfer to the STAR Bonds ReYenue Fund, on or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the disbursement ofstated sums ofmoney to named municipalities, the municipalities to be those from which suppliers and servicemen have paid taxes or penalties hereunderto the Department during the second preceding calendar month. Tlie amount to be paid to each municipality shall be the amount (not including credit memoranda) col!ected hereunder during the second preceding calendar month by the Department, and not including an ( amount equal to the amount ofrefunds made during the second preceding calendarmonth by the Departmentonbehalfofsuch municipality, andnot includinganyamountsthat are transferredtothe ST ARBondsRevenue Fund. Within 

### IO days afterreceipt by the Comptro!lerofthe disbursement certification to the municipalities and the General Re\'enue Fund, provided for in this Section to be given to the Comptrollerby the Department,theComptrol!er shall cause the orders to be drawn 

### for the respective amounts in accordance with the directions contained in the certification.
When certifying the amount ofa monthly disbursement to a municipality under this Section, the Department shall increase or decrease the amountby an amount necessary to offset anymisallocation ofprevious disbursements. The offset amount shall be the amount erroneously disbursed within thepre\'ious 

### 6 months from the time a misallocation is discovered. Nothing in this Section shall be construed to authorize a municipalityto impose a tax upon !he privilege ofengaging in any business which under the constitution ofthe lJnited States may not be made the subject oftaxation by this Stale.

Credits Laws 1961, p. 576, § 8-11-!.7, added by P.A. 88-334, 

## i 5. 

### eff. Ang. 13, 1993. Amended by P.A. 89-399.**~** 25, eff. Aug. 

### 20. 1995; P.A. 96-939.**~** 70. cff. June 24, 20!0; P ...-\. 97-813,

# * 200, cff. July 13. 2012.

Footnotes 65 ILCS 5·1 l-74.4-1 ct seq. 2 35 JLCS 120 1cl seq. 3 35!LCSJ15lo:ts~q.


### r-1~S!S-11-1,7. Non-home rule municipal se.rvice occupation

.., IL ST CH. 65 § 5/8-11·1.7

--! 35 ILCS 115 2. 115 2a. 115 3 10 l 15 3-50. 5 35 ILCS 1J5 4. 6 .'51L.CS 115 5.115 7, 115:-S. 7 35!LCS1159. :::; 351LCS 115 Hl(repealed).115 11.115 12. 9 .\5 II.CS l:'.0 2b. 

### 10 35 JLCS 

### l 15 

### 13. lJ 35 fLCS l l5 15. 115 1 h. I 15 17. I 15. IS. 115 19 and l 15 20. 12 35 ILl"S 735 3-7. 13 3~ ILCS 110 l e1 ,~q. 65 LL.C.S. 5'8-11-l.7, IL ST CII 65 § 5 18-11-1.7 Current through P.A. 99-487 ofthe 2015 Reg. Sess.

## (5·1006. Home Rule County Retailers' Occupation Tax, S.H.A. ch. 34

### 'ff 5·1006

S.H.A. 

### ch. 34 11 5-1006 SMITH-HURD ILLINOISANNOTATED STATUTES CHAPTER34. COUNTIES COUNTIES CODE ARTICLE 5. POVVERS AND DlJTIES OF COUNTY BOARDS 

### DNISION5-1. INGENERAL
5-1006. Home Rule County Retailers' Occupation Tax

§ 5-1006. Home Rule County Retailers' Occupation Tax. Any county which is a home rule unit may impose a tax upon all persons engaged in the business ofselling tangible personal property, other than an item oftangible personal property titled or registered ;vith an agency ofthis State's government. at retail in the county on the gross receipts from such sales made in the course ofsuch business. 

### Ifimposed, such tax shall only be imposed in V.."/0 increments. On and after September I, 199 I, this additional tax may not be imposed on the sales offood for human consumption which is to be consumed offthe premises where it is sold (otherthan alcoholicbe,·erages, soft drinks and food whichhas been prepared for immediate consumption) and prescription and nonprescription medicines, dmgs, medical appliances and insulin, urine testing materials, syringes and needles used by diabetics. The tax imposedbyahome rule countypursuanttothis Section and all civil penaltiesthat maybe assessed as an incident thereofshall be collected and enforcedby the State Department ofRevenue. The certificate ofregistration which is issued bythe Department to a retailerunder the "Retailers' Occupation Tax Act'", approved June 28, I933, as amended, 1shall pem1it such retailer to engage in a business which is taxable under any ordinance orresolution enactedpursuantto this Section without registering separately ·with the Department under such ordinance or resolution orunder this Section. The Department shall have full power to administer and enforce this Section; to collect all taxes and penalties due hereunder; to dispose of taxes and penalties so collected in the manner hereinafterprovided, and to determine al! rights to credit memoranda, arising on ( account ofthe erroneous payment oftax orpenally hereunder. In the administration of, and compliance with, this Section, the Depm1ment and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities. powers and duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions ofterms, and employ the
same modes ofprocedure, as are prescribed in Sections I, la, la-], Id, le, If, Ii. lj, 2 2 (in respect to all provisions therein other than the State rate oftax), 

### -+, 5, 5a, 5b. 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 

### 51, 6, 3 6a, 6b, 6c, 7, 8, 9, JO, ! I, 12, 13 and 

### l3Y2 ofthe "Retailers' Occupation Tax Act", as the same are now ormay hereafterbe amended,4 as fully as ifprovisions contained in those Sections ofthe "Retailers' Occupation Tax Act" were set forth herein. No tax may be imposed by a home rnle county pursuant to this Section unless such county also imposes a tax at the same rate pursuant to Section 5-1007. 5

Persons subject to any tax imposed pursuantto the authority grantedin this Sectionmayreimburse themselves for theirseller's tax liability hereunderby separately stating such tax as an additional charge, which charge maybe stated in combination, in a single amount, with Statetax which sellers are requiredto collectunderthe "UseTaxAct'", 6pursuantto suchbracket schedules as the Department may prescribe.

WheneYer the Department determines that arefund shouldbe madeunderthis Section to a claimantinstead ofissuing a credit memorandum, theDepartment shall notify the StateComptroJler,who shall cause the orderto be drawn forthe amountspecified, and to the person named, in such notification from the Department. Such refi.md shaltbe paid by the State Treasurer out ofthe home rule county retailers' occupation tax fund.

TheDepartment shall forthwithpayoverto theStateTreasurer, ex officio, astrustee,all taxes andpenaltiescollectedhereunder. On or before the 25th day ofeach calendarmonth, the Department shallprepare and certify to the Comptrollerthe disbursement ofstated sums ofmoney to named counties, the counties to be those from which retailers have paid taxes orpenalties hereunder to the Department during the second preceding calendar month. The amount to be paid to each county shal! be the amount (not including credit memoranda) collected hereunder during the second preceding calendar month by the Department plus an amount the Department determines is necessary to offset any amounts which were erroneously paid to a different taxing5,1006. Home Rule County Retailers' Occupation Tax. S.H.A. ch. 34

### 'ii 5-1006 body, and not including an amount equal to the amount ofrefunds made during the second preceding calendar month by the Department onbehalfofsuchcounty, and notincluding any amountwhich the Department detennines is necessary to offset any amounts which were payable (o a different taxing bodybut\Vere erroneouslypaid to the county.Within 

### JO days afterreceipt, by the Comptroller, ofthe disbursement certificationto the counties provided for in this Section to be given to the Comptroller by the Department, the Comptrollershall cause the orders to be drawn for the respective amounts in accordance with the directions contained in such certification.

In addition to the disbursement required by the precedingparagraph, an allocation shall be made inMarchofeach yearto each county which received more than 5500,000 in disbursements under the preceding paragraph in the preceding calendar year. The allocation shal! be in an amount equal to the average monthly distribution made to each such county under the preceding paragraph during the preceding calendaryear (excluding the 2 months ofhighest receipts). The distribution made in March of each year subsequent to the year in which an allocation was madepursuant to this paragraph and the precedingparagraph shall be reduced by the amount allocated and disbursed under this paragraph in the preceding calendaryear. The Department sha!l prepare and certify to the Comptroller for disbursement the allocations made in accordance ,,vith this paragraph.

Forthe purpose ofdetem1ining the local governmentalunit whose tax is applicable, a retail sale, by a producerofcoal orother mineral mined in Jllinois, is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from the earth. This paragraph does not applyto coal or other mineral \Vhen 

### it is delivered or shipped by the seller to the purchaser at a point outside Illinois so that the sale is exempt under the Federal Constitution as a sale in interstate or foreign commerce.

Nothing in this Section shall be construedto authorize a county to impose a tax upon the privilege ofengaging in anybusiness which under the Constitution ofthe Gnited States may not be made the subject oftaxation by this State.

An ordinance orresolution imposing ordiscontinuing a tax hereunder oreffecting a change in therate thereofshall be adopted and a certified copy thereof filed with the Department on or before the first day of June, whereupon the Deparm1ent shall proceed to administer and enforce this Section as ofthe first day ofSeptember next following such adoption and filing.

When certifying the amount of a monthly disbursement to a county under this Section, the Department shal! increase or decrease such amount by an amount necessa!)' to offset any misalloeation ofprevious disbursements. The offset amount shall be the amount erroneously disbursed within the prcYious 6 months from the time a misallocation is discovered.

This Section shall be known and may be cited as the "Home Rule County Retailers' Occupation Tax Law". 1990 Pocket Part Credit(s) P.A. 86-962, Art. 5, § 5-1006, eff. Jan. I. 1990. Amended by PA 86-1028, Art. Il, § 2-17, eft: Feb. 5, 1990.

I Chapter I20, ,. 440 et seq. 2 Chapter 120, 

### ~f 440, 440a, 440a- l, 440d to 440f, 440i, 440j, 441. 3 Chapter 120,

# ,r443 to 444g, 444h (repealed), 444i to 444/, 445.

-1 Chapter 120,

### ~~ 445a to 445c, 446 to 450, 45 !, 452 and 452\1,. 5 Paragraph 303a-2 ofthis chapter. 6 Chapter [20,

### ~ 439.1 et seq. HISTORICAL NOTES HISTORICAL AND STATUTORY NOTES 1990 Pocket Part Historical and Statutory Notes P.A. 86,1028, the First 1990 Revis01y Act, provides in Art. II, for the revision and renumbering ofcertain Sections ofActs whichhave been added or amendedby more than oneAct ofthe 86th General Assembly; repeals certain Sectionsthathavebeen 

### r-J.,..-.: (



## (

### ( 5-1006. Home Rule County Retailers' Occupation Tax. S.H.A. ch. 34 

### 'if 5·1006

both amended and repealed in the 86th General Assembly and incorporates amendments into successor laws: coITects errors. revises cross-references and deletes obsolete text in such sections contained in P.A. 86-1 through P.A. 86- !009. For provisions ofArt. L § 1-2.relating (o intent and Art. V.**~** 5-1, relating to effective dates and acceleration ofActs with later effective dates or extension or revival ofrepealed Acts, see Historical ]\'ates following ch. 5.**~** 1505.

### (5!5-1006. Home Rule County Retailers' Occupation Tax Law, !L ST CH 55 § 515-1006



### West's Smith-Hurd Illinois Compiled StatutesAnnotated Chapter55. Counties

Act

### 5. Counties Code (Refs &Armos)

Aiticle5. Powers and Duties ofCountyBoards Dhision 5-1. 

### In C'n'ncral 55 ILCS 5/5-1006 

### Formerlycited as 

### IL ST 

### CH 341!5-1006 

### 5/5-1006. 

### Home Ruic County 

### Retailers' Occupation

### Tax Law Effective: 

### July31, 2015 Currentness §

### 5-1006. Home Rule County Retailers' Occupation Tax Law. Any 

### county that is a home mle unit may impose a tax upon all persons engaged in the business ofselling tangible personal property, other than an item oftangible personal property titled or registered with an agency ofthis State's government, at retail in the county on the gross receipts from such sales made in the course oftheir business. Ifimposed, this tax shall only be imposed in 1/4% 

### increments. On and af1er September L 1991, this additional tax may not be imposed on the sales offood for human consumption which is to be consumed offthe premises where 

### it is sold (other than alcoholic beverages, soft drinks andfood whichhas beenprepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances and insulin,urine testing materials, syringes and needles used by diabetics. The tax imposed by a home rule county pursuant to this Section and al! ciYil penalties that may be assessed as an incident thereofshall be collected and enforced by the State Department ofRevenue. The certificate ofregistration that ( is issued by the Department lo a retailer under the Retailers' Occupation Tax Act 1 shall pem1it the retailer to engage in a business that is taxable under any ordinance orresolution enacted pursuant to this Section without registering separately with the Department under such ordinance or resolution or under this Section. The Department shall haYe full power to administer and enforce this Section; to collect all taxes and penalties due hereunder; to dispose oftaxes and penalties so collected in the manner hereinafter provided; and to determine all rights to credit memoranda arising on accorn1t ofthe erroneous payment oftax or penalty hereunder. In the administration of, and compliance with, this Section, the Department and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions oftenns, and employ the same modes ofprocedure, as are prescribed in Sections 1, 1a, Ia-1, ld, !

### e, If, 

### 1i, lj, lk, Im, In, 2 tlrrough 2-65 2 

### (in respect to all provisions therein other than the State rate oftax), 4, 5, Sa, Sb, 5c, 5d, 5e, 5f. 5g, 5h. Si, 

### 5j, 5k, 51, 

### 6, 6a, 6b, 6c, 6d, 7, 8, 9, l0, II, 12 and 13 ofthe Retailers' Occupation Tax Act] and Section 3-7 ofthe Uniform Penalty and lnterest Act,~ as fully 

### as ifthose provisions were set forth herein.
No tax may be imposed by a home rule county pursuant to this Section unless the county also imposes a tax at the same rate pursuant to Section 5-1007.
Persons subjectto any tax imposed pursuant to the authority granted in this Section mayreimburse themse]yes for theirseller's tax liability hereunder by separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, v,·ith State tax which sellers are required to collectunder the Use Tax Act, 5 pursuant to such bracket schedules as the Department may prescribe. WheueYer the Department determines that arefund should be made under this Section to a claimant instead ofissuing a credit memorandum, the Department shall notifythe State Comptroller, who shall causethe orderto be drawn forthe amountspecified515-1006. Home Rule County Retoilers' Occupation Tax law, IL ST CH 55 § 515-1006

and to the person named in the notification from the Department. The refund shall be paid by the State Treasurer out ofthe home rule county retailers' occupation tax fund. The Department shall forthwith pay O\"erto the State Treasurer. ex officio, as trustee, all taxes and penalties collectedhereunder. As soon as possible after the first day of each month, beginning January L 2011, upon certification of the Department of Revenue, the Comptroller shall ordertransferred, and the Treasurer shall transfer. to the STAR Bonds Re\•enue Fund the local sales lax increment, as defined in the Inno\'ation DeYelopment and EconomyAct, collectedunderthis Section duringthe second preceding calendarmonth for sales within a STAR bond district. Afterthe monthly transferto the STAR BondsReYenue Fund, on orbefore the 25thday ofeach calendarmonth.the Department shall prepare and ce1tify to the Comptroller the disbursement ofstated sums ofmoney to named counties. the counties to be those from which retailers have paid taxes or penalties hereunder to the Department during the second preceding calendar month. The amount to be paid to each county shall be the amount (not including credit memoranda) collected hereunder during the secondpreceding calendar month by the Dcpmtmcnt plus an amount the Department detem1ines is necessary to offset any amounts that were erroneously paid to a different taxing body, and not including an amount equal to the amount ofrefunds made during the second preceding calendarmonth by the Department on behalfofsuch county, and not including any amount which the Department dctem1ines is necessary to offset any amounts which werepayable to a different taxing body but were erroneouslypaid to the county. and not including any amounts that are transferred to the STARBonds Revenue Fund. Within IO days after receipt, by the Comptroller, ofthe disbursement certification to the counties pro\'ided for in this Section to be given to the Comptroller by the Department the Comptroller shal! cause the orders to be drawn for the respective amounts in accordance with the directions contained in the certification.
In addition to the disbursement required by the preceding paragraph, an allocation shall be made in March of each year to each county that received more than $500,000 in disbursements under the precedingparagraph in the precedingcalendaryear. The allocation shall be in an amount equal to the average monthly distribution made to each such county under the preceding paragrapl1 during the preceding calendaryear (excluding the 2 months ofhighest receipts). The distribution made in March of each year subsequent to the yearin which an allocation was made pursuant to this paragraph and the preceding paragraph shall be reduced by the amount allocated and disbursed under this paragraph in the preceding calendaryear. The Department shall prepare and certify to the Comptrollerfor disbursement the allocations made in accordance with this paragraph. Forthe purpose ofdetermining the local governmental unit whose tax is applicable. a retail sale by aproducer ofcoal or other mineral mined in Illinois is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from the earth. This paragraph does not apply to coal or other mineral when it is delivered or shipped bythe seller to the purchaser at a point outside Illinois so that the sale is exempt under the United States Constitution as a sale in interstate orforeign commerce. Nothing in this Section shall be constmed to authorize a county to impose a tax upon the privilege ofengaging in any business whichunder the Constitution ofthe United Slates may not be made the subject oftaxation by this State.
An ordinance or resolution imposi11g or discontinuing a tax hereunder oreffecting a change in the rate thereofshall be adopted and a certified copy thereoffiled with the Department onorbeforethe first day ofJune, whereupon the Depmtment shall proceed to administer and enforce this Section as ofthe first day of September next following such adoption and filing. Beginning January 1, 1992, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate thereofshall be adopted and a certifiedcopy thereoffiled with the Departmentonorbefore the first day ofJuly, whereupon the Department shall proceed to administer and enforcethis Section as ofthe first day ofOctobernext following such adoption and filing. Beginning Janua1y 1, 1993. an ordinance orresolution imposing or discontinuing the tax hereunder or effecting a change in the rate thereofshall be adopted and a certifiedcopythereoffiled with the Department on or beforethe first day ofOctober, whereupon the Department shall proceed lo administer and enforce this Section as ofthe first day ofJanuary next following such adoption and filing. Beginning April l, 1998, an ordinance or resolution imposing or discontinuing the tax hereunder or

### ( 515-1006. Home Rule County Retailers' Occupation Tax Law, !L ST CH 55 § 5i5·1006
effecting a change in the rate thereof shall either {i) be adopted and a certified copy thereof filed with the Department on or before the first day ofApril. whereupon the Department shall proceed to administer and enforce this Sectionas ofthe first day ofJuly next following the adoption and filing: or (ii) be adopted and a certified copy thereoffiled with the Department on or before the first day ofOctober, whereupon the Department shall proceed to administer and enforce this Section as ofthe first day ofJanuary next following the adoption and filing.
When certif}-'ing the amountofamonthly disbursementto a countyunderthis Section. the Department shall increase ordecrease such amotmt by an amount necessary to offset any misallocation ofprevious disbmsements. The offset amount shall be the amount erroneously disbursed within the previous 6 months from the time a rnisallocation is discovered.
This Section shall be known and maybe cited as the Home Rule County Retailers' Occupation Tax Law.

Credits P.A. 86-962. A11. 5.**~** 5-1006. l'ff Jan. I. 1990. Amended by P.A. :-;6-1021', A11. I!. 

### 92-17. eff. Feb. 5. !990; P.A. 86-1475, :\.rt. 5.**~** 5-7. dT Jan. 

### JO. 199 I; P.A. 87-205, Art. 2.**~** 2-2. cff. July 

### 1. 1992; P.A. 87-205. Art. 4,**~** 4-2, eff. Jan. l. 1994: P.A. 81-895. Art. 2.**~** 

### 2-17. ,;ff Aug. 

### 14, 1992; P.A. 90-689.**~** 5. eff. July 31. 

### 199g_ Re-enacted by P.A. 91-51.**~** 140, eff. hm<e 30. 1999. Amended by P.A. %-'{W.**~** 67, ell June 24, 2010: P.A. 99-217,**~** 20

. .:ff. July 31, 2015. formcrlylll.RcY.Stat.l99 l. ch. 34. c 5-1006.

::-..:otes ofDccisiom (4J

Footnotes 35 !LCS 120 I ct ',Cq. 2 35 ILCS 120 I. 120 la. 120 la-1. 120 Id, l2U k. l2U IC 120 Ii. 120 lj. 120 lk. 120 lm. 120 ln. 120 2 lo !2(1"2-65. 3 35 ILCS 120 4, 12(1 5, 1::,n 5a, 120 5h, 120'5c, 120 5d, l'.'.O Sc, 120 5f. 12\l 5g. 120 511. 1211 5i. 1::00 5_i. 1::'0 )k. 120 5/, l'.'.O 6, 120 rm, 120 6b. 1::'ll 6c. 120 7. 120 8. 120 9. 120 10. !20 11. 120·12 and 120 13. 4 35 ILC'S 735 3-7. 5 35 [LCS 105'] Cl~Cc[. 55 I.L.C.S. 5.'5-1006, IL ST Cll 55 § 5!5~1006 Currentthrough P.A. 99-487 ofthe 2015 Reg. Sess.

### (

## ( 5-1007. Home Rufe County Service Occupation Tax, S.H.A. ch. 34115-1007



### S.1-1.A. ch. 34**~** 

### 5-1007 SMITH-HURDILLINOISANNOTATED STATUTES CHAPTER 34. COUNTIES COUNTIES CODE ARTICLE5. POv\TERS AND DUTIES OF COUNTY BOARDS 

### DIVISION5-1. INGENERAL
5-1007. Home Rule County Service Occupation Tax

§ 

### 5-!007. Home Rule County Service Occupation Tax. The corporate authorities ofa home rule county may impose a tax upon all persons engaged, in such county, in the business ofmaking sales ofservice at the same rate oftax imposedpursuant to Section 5-1006 ofthe selling price ofall tangible personal property transferred by such servicemen either in the fom1 of tangible personal property or in the form ofreal estate as an incident to a sale ofservice. If imposed, such tax shall only be imposed in Y4% increments. On and after September l, 1991, this additional tax may not be imposed on the sales offood for human consumption which is to be consumed offthe premises where it is sold (other than alcoholic beverages, soft drinks and food which has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes and needles used bydiabetics. The tax imposed bya home rule county pursuantto this Section and all civil penalties that maybe assessed as an incidentthereofshall be collected and enforcedby the State Department ofRevenue. The certificate ofregistration which is issuedby the Departmentto aretailerunderthe "Retailers' Occupation Tax Act"', approved June 28, 1933, as amended, 1 or under the "Service Occupation Tax Act", approved July 10, 

## ' 196l, as amended,

- shall pe1mit such registrant to engage in a business which is taxable under any ordinance or resolution enactedpursuantto this Sectionwithoutregistering separatelywith the Departmentunder such ordinance orresolution orunder this Section. The Department sha\J have full powerto administer and enforce this Section; to collect all taxes and penalties due hereunder; to dispose oftaxes and penalties so collectedin the mannerhereinafterprovided, and to determine all rights to credit memoranda arising on account ofthe erroneouspayment oftax or penaltyhereunder. In the administration of, andcompliance with, this Section,the Department and persons who are subjectto this Section shall have the same rights, remedies, privileges, immunities,powersand duties, and be subjectto the same conditions, restrictions, limitations,penalties and definitions oftem1s, and employ the same modes ofprocedure, as are prescribed in Sections la-I, 2, 2a, 3 3 (in respect to all provisions therein otherthan the State rate oftax), 4 

### 4 (except that the reference to the State shall beto the taxing county), 5, 7, 8 5 (except that thejurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shaH be the taxing county), 9 6 (except as to the disposition oftaxes and penalties collected, and except that the returned merchandise credit for this county tax may not be taken against any State tax), I0, 11, 12 7 (except the reference therein to Section 2b ofthe Retailers' Occupatio11 Tax Act), 8 13 9 (except that any reference to the State shall mean the taxing county), the first paragraph ofSection 15, 15

### Yi, 16, 17, !O 

### 18, 19 and 20 ofthe "Service Occupation Tax Act", as the same are now ormay hereafter be amended, 11 as fully as if provisions contained in those Sections ofthe "Service Occupation Tax Act" were set forth herein.

No tax may be imposed by a home rnle county pursuant lo this Section unless such county also imposes a tax at the same rate pursuant to Section 5-1006.

Persons subject to any tax imposed pursuant to the authority granted in this Section may reimburse themselves for their serviceman's tax liability hereunder by separately stating such tax as an additional charge, which charge may be stated in combination,in a single amount, with State tax which servicemen are authorized to collectunder the "ServiceUse Tax Act", 12 pursuant to such bracket schedules as the Departmentmay prescribe.

Whenever the Department determines that arefund shouldbe made under this Section to a claimant instead ofissuing credit memorandum, theDepartmentshall notify the StateComptroller, who shall causetheorderto bedrawn forthe amountspecified, and to the person named, in such notification from the Department. Such refund shall be paidby the State Treasurer out ofthe home rnle countyretailers' occupation tax fond.5-1007. Home Rule County Service Occupation Tax., S.H.A. ch. 34 ,i 5-1007

The Department shall forthwith pay over to the State Treasurer, ex-officio, as trustee, all taxes and penalties collected hereunder. On orbefore the 25th day ofeach calendarmonth, the Department shall prepare and certify to the Comptroller the disbursement ofstated sums ofmoney to named counties, the counties to be those from which suppliers and servicemen hln·e paid taxes orpenalties hereunderto the Departmentduring the second precedingcalendarmonth. The amountto bepaid to each county shallbe the amount (not including credit memoranda) collected hereunder during the secondpreceding calendarmonth by the Department, and not including an amount equal to the amount ofrefunds made during the second preceding calendar month by the Department on behalfof such county. Within 10 days after receipt, by the Comptroller, ofthe disbursement certification to the counties provided for in this Sectionto be givento the Comptrollerby the Department, the Comptroller sha\l cause the orders to be drawn for the respective amounts in accordance with the directions contained in such certification.

In addition to the disbursementrequired by the preceding paragraph. an allocation shall be made in each yearto each county which received more than SS00,000 in disbursements under the preceding paragraph in the preceding calendar year. The allocation shall be in an amount equal to the average monthly distribution made to each such county under the preceding paragraph during the preceding calendar year (excluding the 2 months ofhighest receipts). The distJ.ibution made in March of eachyear subsequent to the yearin which an allocation was madepursuant to this paragraph and the precedingparagraph shall be reduced by tl1e amount allocated and disbursed under this paragraph in the preceding calendaryear. The Department shall prepare and certify to the Comptrollerfor disbursement the allocations made in accordance with this paragraph. Nothingin this Section shallbe construedto authorize a countyto impose a tax uponthe privilege ofengaging in anybusiness \Vhich underthe constitution ofthe United States may not be made the subject oftaxationby this State.

An ordinanceorresolution imposing ordiscontinuing a tax hereunder or effecting a change in the rate thereofshall be adopted and a certified copy thereof filed with the Department on or before the first day ofJune, whereupon the Department shall proceedto administer and enforce this Section as ofthe first day ofSeptembernext following such adoption and filing.

This Section shall be known and may be cited as the "'Home Rule County Service Occupation Tax Law". 1990 Pocket Part Credit(s) P.A. 86-962, Art. 5, § 5-1007, eff. Jan. I, 1990. Amended by P.A. 86~1028, Art. II,§ 2~17, eff. Feb. 5, 1990.

1 Chapter 120,

## 1' 440 et seq. 2 Chapterl20,,1439.10l et seq. 3 Chapter 120,

### ~~ 439.102a, 439.102b, 439.102, 439.103. 4 Chapter 120,

# r439.104. 5 Chapter 120, ,,~ 439.l05, 439.l07, 439.108. 6 Chapter 120, 

### ,i 439.109. 7 Chapter 120, 

### ,i~ 439.110, 439.111, 439.112. 8 Chapter 120, 

## ~i 44lb. 9 Chapter120,~439.113.
IO Chapter 120,

### ~~ 439.115 to 439.117. 11 Chapter 120, 

### ,i~ 439.118 to 439.120. 

### (5-1007. Home Rule County Service Occupation Tax. S.H.A. ch. 34 

### 'if 5-1007

12 

### Chapter 120,,. 439.1 et seq. HISTORICAL NOTES HISTORICAL Al\'D STATUTORY NOTES
J990 Pocket Part Historical and Statutory Notes P.A. 86-1 028, the First 1990 Revisory Act, provides in Art. 11, for the revision and renumbering ofcertain Sections ofActs v"11ich havebeen added oramendedby more than one Act ofthe 86th General Assembly; repeals certain Sections thathavebeen both amended and repealed in the 86th General Assembly and incorporates amendments into successor laws; corrects errors, re\'ises cross-references and deletes obsolete text in such sections contained in P.A. 86-1 through P.A. 86-1009. Forprovisions ofArt. I, § l-2,relating to intent and Art. V. § 5-1, relating to effective dates and acceleration ofActs with later effective dates or extension orrevival ofrepealed Acts, see Historical Notes following ch. 5,**~** 1505.

! mid ih ., ,... ,,,

### (



# I515-1007. Home Rule County Service Occupation Tax Law, IL ST CH 55 § 5/5-1007



### ( West's Smith-HmdIllinois Compiled StatutesA.nnotated



## ( Chapter55. 

### Counties Act 5. Counties Code (Refs & 

### Annos)

Article 5. Powers and Duties ofCounty Boards Dhision 5-1. In General 55 ILCS 5/5-1007 Formerlycited as 

### IL ST 

### CH 34 i)j-1007 5/5-1007. Hume Rule County ScrdccOccupatiun Tax 

### Law Effective: June 24, 2010 Currentness**~** 

### 5-1007. Home Rule County Ser-ice Occupation Tax Law. The corporate authorities of a home rule county may impose a tax upon all persons engaged, in such county. in the business ofmaking sales ofservice at the same rate oftax imposed pursuant to Section 5-l006 ofthe selling price ofall tangible personal property transferred by such sefficemen either in the form oftangible personal property or in the form ofreal estate as an incident to a sale ofservice. Ifimposed, such tax shall only be imposed in 1 /, % 

### increments. On and after September l. 1991, this additional tax may not be imposed on the sales of food for human consumption which is to be consumed off

### the premises where it 

### is sold (other than alcoholic beverages, soft drinks and food which has been prepared for immediate consumption) and prescription and nonprescription medicines, drngs, medical appliances and insulin, urine testing materials, syringes and needles used by diabetics. The tax imposed by a home rule county pursuant to this Section and all civil penalties that may be assessed as an incident thereofshall be collected and enforced by the State Department ofRevenue. The certificate ofregistration which is issued by the Department to a retailer underthe Retailers' Occupation Tax Act 1 orunder the SerYice Occupation Tax Act2 

### shall permit such registrant to engage in a business V,·'hich is taxable under anyordinance orresolution enactedpursuantto this Section without registering separatelywith the Departmentunder such ordinance or resolution or under this Section. The Departmen1 shalt have foll powerto administer and enforce this Section; to collect all taxes and penalties due hereunder; to dispose oftaxes and penalties so col!ected in the manner hereinafter provided: and to determine all rights to credit memoranda arising on account ofthe erroneous payment oftax or penalty hereunder. ln the administration of, and compliance with, this Section the Department and persons who are subject to this Section shall have the same rights, remedies. privileges. immunities, powers and duties, and be subject lo the same conditions, restrictions, limitations, penalties and definitions oflem1s, and employ the same modes ofprocedure, as are prescribed in Sections la-1, 2, 2a. 3 through 3-50 3 (in respect to all provisions therein other than the State rate oftax), 44 (except that the reference to the State shall be to the taxing county), 5, 7, 85 

### {except that thejurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the taxing county), 9 6 (except as to the disposition oftaxes and penalties collected, and except that the returned merchandise credit for this county tax may not be taken against any State tax), 10. 11, 12 7 (except the reference therein to Section 2b ofthe Retailers' Occupation Tax Act).~, 13 'l 

### (exceptthat any reference to the State shall mean the taxing county), the first paragraph ofSection 15, 16, 17, 18, 19 and 20 ofthe Service Occupation Tax Act IO 

### and Section 3-7 ofthe Uniforn1 Penalty and Interest Act, 11 as fully as ifthose provisions were set forth herein.
No tax may be imposed by ahome rule county pursuant to this Section unless such county also imposes a tax at the same rate pursuant to Section 5-1006.
Persons subject to any tax imposed pursuant lo the authority granted in this Section may reimburse themselves for their serviceman's tax liability hereunder by separately stating such tax as an additional charge, which charge may be stated in515-1007. Home Rule County Service Occupation Tax Law, IL ST CH 55 § 515-1007

combination. in a single amount, with State tax which sefficemen are authorized to collect under the Service Use Tax Act, 12 pursuant to such bracket schedules as the Department may prescribe. \\.'henever the Department determines that a refund should be made under this Section to a claimant instead ofissuing credit memorandum. the Department shall notify the State Comptro!ler, who shall cause the ordertobe drawn fortheamount specified. and to the person named, in such notification from the Department Such refund shall be paid by the State Treasurer out ofthe home mle countyretailers' occupation tax fond. The Department shall forthwith pay over to the Slate Treasurer, ex~officio, as trnstee, all taxes and penalties collectedhereunder.
As soon as possible after the first day of each month, beginning January I. 201 !, upon certification of the Department of Revenue, the Comptroller shall ordertransfen-ed, and the Treasurer shall transfer, to the STAR Bonds ReYenue Fund the local sales tax increment. as defined in the lnnorntion Development and Economy Act, collected underthis Sectionduring the second preceding calendarmonth for sales within a STAR bond district. Afterthe monthly transfer to the STARBondsRevenue Fund, on orbeforethe 25th day ofeach calendarmonth, the Department shall prepare and certify to the Comptrollerthe disbursement ofstated stuns ofmoneyto named counties, the countiesto bethose from which suppliers and servicemen ha,·e paid taxes or penalties hereunder to the Department during the second preceding calendarmonth. The amount to be paidto each county shall be the amount (not including creditmemoranda) collectedhereunder during the second preceding calendar month by the Department, and not including an amount equal to the amounl ofrefunds made during the second preceding calendar month bythe Department on behalfofsuch county, and not including any amounts that are transferred to the STAR Bonds Revenue Fund. Within 10 days after receipt, by the Comptroller, ofihe disbursement certification to the countiesprovidedfor inthis Sectionto be givento the Comptrollerbythe Department, the Comptroller shall causethe orders to be drawn for the respective amounts in accordance with the directions contained in suchcertification.
In addition to the disbursement required by the preceding paragraph, an allocation shall be made in each ye-ar to each county which recei\'ed more than S500,000 in disbursements under the preceding paragraph in the preceding calendar year. The allocation shall be in an amount equal to the a\'erage monthly distribution made to each such county under the preceding paragraph during the preceding calendaryear (excluding the 2months ofhighest receipts). The distribution made in March of each year subsequentto the yearin which an allocation was madepursuant to this paragraph and the preceding paragraph shall be reduced by the amount allocated and disbursed under this paragraph in the preceding calendar year. The Department shall prepare and certify to the Comptrollerfor disbursement the allocations made in accordance with this paragraph. Nothing in this Section shall be constmed to authorize a county to impose a tax npon the privilege ofengaging in any business which under the Constitution ofthe United States may not be made the subject oftaxation bythis State. 

## (

An ordinance orresolution imposing or discontinuing a tax hereunderoreffecting a change in the rate thereofshall be adopted and a certifiedcopythereoffiled with the Department on orbeforethefirst day ofJune, whereupon the Department shall proceed to administer and enforce this Section as ofthe first day of September next following such adoption and filing. Beginning January I, 1992, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate thereofshall be adopted and a ce11ified copy thereoffiled with the Department on orbefore the first day ofJuly, whereupon the Department shall proceed to administerand enforcethis Section as ofthe first day ofOctobernext following such adoption and filing. BeginningJanuary I, I993, an ordinance orresolution imposing or discontinuing the tax hereunderoreffecting a change in the rate thereofshall be adopted and a certified copythereoffiled with the Department on orbefore the first day ofOctober, whereupon the Department shall proceed to administer and enforce this Section as ofthe first day ofJanuary next following such adoption and filing. Beginning April I, 1998, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate thereofshall either (i) be adopted and a ce11ificd copy thereoffiled with the Department on or before the first day ofApril, whereupon the Department shall proceed to administer and enforce this Section as ofthe first day ofJuly next following the adoption and filing; or (ii) be adopted and a certified copy thereoffiled with the Department on or (5/5-1007. Horne Rule County Ser;ice Occupation Tax Law, !L ST CH 55 § 515-i007

before the first day ofOctober, ·whereupon the Department shall proceed to administer and enforce this Section as ofthe first day ofJanumy next following the adoption and filing.
This Section shall be known and 

### may be cited 

### as the !Jome Rule County Service Occupation 

### Tax Lav,,.

Credits P.A. 86-96.'.'., An. 5.**~** 5-1007. eff. Jan. 1, 1990. Amended by P.A.1%-IU.'.'.il. Art. Ii.§ 2-17, eff. Feb. 5, 1990; P.A. :-:6-1475. An. 5.**~** 5-7, eff. Jan. 10. 199): P./L 87-20'.'. A.11. 

### 2,**~** 

### 2-2. eff July l. 1992; P.A. 87-205, An. 4.**~** 4-2. eff. Jan. L 1994: P.A. 87-895. Ar1. 2, § 2-1 7. eff. Aug. l4. 1992: P.A. 90-6.'N. § 5. df. July 31. 1998. Re-enacted by P.A. 91-5 I, § 140. eff. June JO. 1999. Amended by P.A. 96-939,) 67. 

### eff June 24. 20l0. Formc-rly lll.Re\·.Stat.1991. d1. 34. • 5-1007.

footnotes 35 !LCS 120 1 el ,eq. 35 ILCS 115 l et,eq. 

### 3 Jj II.C'S 120 la-1. 35 ILCS 115·2. 115 2a. 115 3 to 115 3-50. 4 351LCSl154. 

### 5 35 !LCS 115 3. 115 "'. an<l !15 ts. 6 35ILCS1l5'l. 7 351!.C'S 115 JO, 11511.and 1151.:'.. 8 351LCS I202b. 9 35!LCSJ!513. 

### 10 35 JLCS \ I5 15. l 1j 16. l 15 !--,. I 15 IX, 115 19, and l 15 ~O. 11 35 JI.CS 735 ·_-,_7. 12 351LCSl!Olet,~cJ. 55 !.L.C.S. 5/5-1007, lL STC!-155 § 5/5-1007 Current through P.A. 99-487 ofthe 2015 Reg. Sess.

### (1605/30. Taxes. 70 ILCS 1605130



### I605/30. Taxes § 

### 30. Taxes. 

### 70 ILCS 1605/30 v\lEST'S

### SMITH~HURD ILLINOIS COMPILED STATUTESANNOTATED CHAPTER70. SPECV\L DISTRJCTS 

### PARK ACT 1605.METRO-EAST PARKAND RECREATION DISTRJCTACT

(a) The board shall impose a tax upon all persons engaged in the business ofselling tangible personal property. other than personal property titled or registered with an agency ofthis State's government, at retail in the District on the gross receipts from the sales made in the course ofbusiness. This tax shall be imposed only at the rate ofone-tenth ofone percent.

This additional tax may not be imposed on the sales offood for human consumption that is to be consumed offthe premises where it is sold (other than alcoholic beverages, soft drinks, and food which has been prepared for immediate consumption) and prescription and non-prescription medicines. dmgs, medical appliances, and insulin, urine testing materials. syringes, and needles used by diabetics. The tax imposed by the Board under this Section and all civil penalties that may be assessed as an incident ofthe tax sha!l be collected and enforcedby the Department ofRevenue. The certificate ofregistration that is issued by the Department to a retailer under the Retailers' Occupation Tax Act [FNJ} shall pennit the retailer to engage in abusiness that is taxable without registering separately with the Department under an ordinance or resolution under this Section. The Department has foll power to administer and enforce this Section. to collect all taxes and penalties due under this Section. to dispose oftaxes and penalties so collected in the mannerprovided inthis Section, andto determine all rights to creditmemoranda arising onaccount ofthe en-oneous payment ofa tax. or penalty underthis Section. In the administration ofand compliance with this Section, the Department and persons who are subject to this Section shall (i) have the same rights. remedies, privileges, ( immunities. powers, and duties, (ii) be subject to the same conditions. restrictions, limitations, penalties, and definitions of terms, and (iii) employ the same modes ofprocedure as are prescribed in Sections 1, 1 a, 1 a-1, 1 d, Ie. If, Ii, lj, Ik, Im, In, 2. 2-5, 2-5.5, 2-10 [Fl\'.2J (in respect to all provisions contained in those Sections other than the State rate oftax), 2-15 through 2-70, 2a, 2b, 2c, 

### 3 [fN3] (exceptprovisions relating to transaction returns and qumter monthly payments), 4. 5, 5a, 5b. 5c, 5d, Se, Sf, 

### 5g, 5h, Si, 5j, 5k, 5/, 6, 6a. 6b. 6c, 7, 8, 9. JO, 11, l la, 12, and 13 ofthe Retailers' Occupation Tax Act [FN4] and the lJnifonn Penalty and Interest Act [FX5] as ifthose provisions were set forth in this Section.

Persons subject to any tax imposed under the authority granted in this Section may reimburse themselves for their sellers' tax liability by separately stating the tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax which sellers are required to collectunder the Use Tax Act, [Fl'\6] pursuantto such bracketed schedules as the Department may prescribe.

Whenever the Department detem1ines that arefund should be made under this Section to aclaimant instead ofissuing a credit memorandum, the Department shall notifythe StateComptroller, who shall cause the ordertobedrawn for the amount specified and to the person named in the notification from the Department. The refund shall be paid by the State Treasurer out ofthe State ~1etro-East Park and Recreation District Fund. (b) If a tax has been imposed under subsection (a), a service occupation tax shall also be imposed at the same rate upon all persons engaged. in the District, in the business ofmaking sales ofservice, who, as an incident to making those sales of service, transfer tangible personal property within the District as an incident to a sale ofservice. This tax may not be imposed on sales offood forhuman consumption that is to be consumed offthe premises whereit is sold (otherthan alcoholic beverages, soft drinks, and food prepared for immediate consumption) and prescription and non-prescription medicines, drngs, medical appliances. and insulin, urine testing materials, syringes, and needles used by diabetics. The tax imposed under this subsection and a!! civil penalties that may be assessed as an incidentthereofshall be collected and enforced bythe Department ofRevenue. The Department has full power to administer and enforce this subsection; to collect all taxes and penalties due hereunder; to dispose oflaxes and penalties so collected in the manner hereinafterprovided; and to determine all rights to credit memoranda arising on account ofthe erroneous payment of tax or penalty hereunder. In the administration of, and compliance with this subsection, the Department and persons who are subject to this paragraph shall (i) 

### have the same lights, remedies, privileges,1605!30. Taxes, 70 JLCS 1605!30
immunities,powers, and duties, (ii) be subject to the same conditions,restrictions. !imitations.penalties, exclusions, exemptions, and definitions ofterms. and (iii) employ the same modes ofprocedure as are prescribed in Sections 2 

### [F;-.;7J (except that the reference to State in the definition ofsupplier maintaining aplace ofbusiness in this State shall mean the District), 2a, 2b, 

### 2c. 3 through 3-50 

### [Fl'<SJ (in respect to all pro\'isions therein other than the State rate oftax), 4 fF'.\'9] (except that the reference to the State shall be to the District), 5. 7, 8 

### IFKJOJ (except that lhejurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 sha!l be the District), 9 [F:-.:11] (except as to the disposition oftaxes and penalties collected), 10, 11. 12 [Fl\: 12] (except the reference therein to Section 2b ofthe Retailers' Occupation Tax Act) [F'.\'13], 13 (except that any reference to the State shall mean the District), Sections 15. 16. 17, 18, 19 and 20 ofthe SerYice Occupation Tax Act [FJ\'J4] and 1he l,'nifonn Penalty t1nd lnterest Act. as fully as ifthose pro\'isions were set forth herein.

Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their serYieeman's tax liability by separately stating the tax as an additional charge. which charge may be stated in combination, in a single amount, with State tax that servicemen arc authorized to collect under the Service Cse Tax Act. [F!\I:'i] in accordance with such bracket schedules as the Department may prescribe.

Whenever the Department determines that a refund should be made under this subsection to a claimant instead ofissuing a credit memorandum, the Department shall notify the State Comptroller. who shall cause the warrant to be drawn for the amount specified, and to the person named. in the notification from the Department. The refund shall be paid by the State Treasurer out ofthe State Metro-East Park and Recreation Distlict Fund.

Nothing in this subsection shall be construed to authorize the board to impose a tax upon the privilege ofengaging in any business which under the Constitution ofthe United States may not be made the subject oftaxation by the State.

(c) The Department shall immediately pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected underthis Sectiou to be deposited into the State Metro-EastPark and Recreation DistrictFund, which shall be anunappropriated trust fund held outside ofthe State treasury. On or before the 25th day ofeach calendar month. the Department shall prepare and certify to the Comptrollerthe disbursement ofstated sums ofmoney pursuant to Section 35 ofthis Act to the District from which retailers have paid taxes or penalties to the Department during the second preceding calendar month. The amount to be paid lo the District shall be the amount (not including credit memoranda) collected under this Section during the second preceding calendar month by the Dcpm1ment plus an amount the Department detem1ines is necessary to offset any amounts that were enoneously paid to a different taxing body. and not including (i) an amount equal to the amount ofrefunds made during the secondpreceding calendarmonth by the Department onbehalfofthe District and (ii) any amount that the Depa11ment detennines is necessary to offset any amounts that \Yere payable to a different taxing body but were erroneously paid to the District. Within 

### IO days after receipt by the Comptroller ofthe disbursement certification to the District provided for in this Section to be given to the Comptrollerbythe Department. the Comptroller shall cause the orders to be drawn for the respective amounts in accordance with directions contained in the certification.

(d) For the purpose ofdetermining whether a tax authorized underthis Section is applicable, aretail salebyaproducer ofcoal or another mineral mined in Illinois is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from the earth. This paragraph does not apply to coal or another mineral when it is delivered or shipped by the seller to the purchaser at a point outside Illinois so that the sale is exempt under the United States Constitution as a sale in interstate or foreign commerce.

(e) Nothing in this Section shall be construed to authorize the board to impose a tax upon the p1ivilege ofengaging in any business that under the Constin1tion ofthe United States may not be made the subject oftaxation bythis State.

(f)An ordinanceimposing a tax underthis Sectionoran ordinanceextendingthe imposition ofa tax to an additional cotmty or counties shall be ceiiified bythe board and filed with the Department ofRevenue either (i) on or before the first day ofApril, whereupon the Department shall proceed to administer and enforce the tax as ofthe first day ofJuly next following the filing; or (ii) on or before the first day ofOctober, whereupon the Department shall proceed to administer and enforce the tax as of the first day ofJanuary next following the filing.

(g) When certifying lhe amount ofa monthly disbursement to the Districtunderthis Section, the Department shall increase or decrease the amounts by an amount necessary to offset any misallocation ofprevious disbursements. The offset amount shall be the amount erroneously disbursed within the previous 6 months from the time a misallocation is discoYered. CREDIT(S) 

### (



### (1605/30. Taxes, 70 ILCS 1605!30

1999 Electronic L'pdate P.A. 91-103. § 30, eff. July !3, !999.

[F;\1]3'.'JLCS !201 et seq. [F:--:2]35 !LCS 120·!, 120 la, 120 la-1, 120 Id, 120 le, 120·1t~ 120 Ii. 120 lj, 120 lk, 120 Im, 120 111. 120 2, 120 2-5,

!20 

### 2-5.5. and !20.2-10. [F:\".']35 JLCS 120 2-15 to 120 2-70, !20 2a, 120 2b, 1::0·2c, and 12() 3. [F:--:4]35 JLCS J2(k.-\. 120 5. L20 Sa. 120 Sb. 120 5c. 120 5d, 120,Se. 120·51: 120 5g, 120 Sh, 120 5i. 120 5j, 120 5k. l'.20 5!,

12() 6, J2(J 6a, 120 6b. l::'0,6c, 120 7, 120 S, 120 9. 120·10, !20 ! I, 12!) !la. 120 12. and !20 13. [F:\5] 35 ILCS 735/13-l et seq. fF'.\6]35 llCS 105 let seq. [F\'7]35 ILCS l !5<'.. [F\"~]35ILCS 115 2a, 115 2b. ll:i.2cand 11:i 3to 115 3-50. [Fi\9]35 ILCS 

### I I 5 -L [F>,.; lll]35 !LCS I 15 5, 115, 7
.. and I l 5 8. [F'1\ll]351LCS 115·9. [FN12]351LCS 11510, 115.Jl,and 115.-!2. [FA13J35 ILCS 

### 120 2b. [F~ !4]35 ILCS 115 !5, ! !5 l6. 115 17, 115· IX. l l 5 19, and 115 ·20. [FN 15]35 ILCS 110 I et seq.

i !- '.

### (1605/30. Taxes, !L ST CH 70 § 1605130

\.Vest's Smith-Hurd Illinois Compiled StatutesAnnotated 

### Chapter70. Special Districts

Park



### Act 1

### 605. l\·Ietro-EastPark and Recreation 

### DistrictAct (Refs & Annos)

§ 30. Taxes. 

### 70 ILCS 1605/30 1605/30.Taxes Effective: July31, 2015 Currentness

(a) The board shall impose a tax upon all persons engaged in the business ofselling tangible personal property, other than personal property titled or registered with an agency ofthis State's government, at retail in the District on the gross receipts from the sales made in the course ofbusiness. This tax shall be imposed only at the rate ofone-tenth ofone per cent. This additional tax may not be imposed on the sales offood for human consumption that is to be consumed offthe premises where it is sold {other than alcoholic beverages. soft drinks, and food which has been prepared for immediate consumption) and prescription and non-prescription medicines, drngs. medical appliances, and insulin, urine testing materials, syringes, and needles used by diabetics. The tax imposed by the Board under this Section and all civil penalties that may be assessed as an incident ofthe tax shall be collected and enforced by the Department ofRevenue. The certificate ofregistration that is issued by the Departmentto a retailer underthe Retailers' OccupationTax Act 1 shall permit the retailerto engage in a business that is taxablewithoutregistering separately·with the Departmentunderan ordinance orresolutionunder this Section.The Department has full power to administer and enforce this Section, to collect all taxes and penalties due under this Section, to dispose of taxes andpenalties so collected in the manner provided in th.is Section, and to determine alt rights to credit memoranda arising on account ofthe enoneous payment of a tax or penalty under this Section. In the administration of and compliance with this Section, the Department and persons who are subject to this Section shall (i) have the same rights, remedies, pri\'ileges, immunities, powers, and duties, (ii) be subject to the same conditions, restrictions. limitations, penalties. and definitions of terms, and (iii) employ the same modes ofprocedure as are prescribed in Sections l, la, la-1, Id, le, lf, Ii, lj, lk, Im, ln, 2. 2-5, 2-5.5, 2-10 2 (in respect to all provisions contained in those Sections other than the State rate ofta.-.,:), 2-12, 2-15 through 2-70, 2a, 2b, 2c, 33 (except provisions relating to transaction returns and qua11er monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5[, 5g, 5h. 5i, 5j, 5k, 5/, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10. l I, I 1a, 12, and 13 ofthe Retailers' Occupation Tax Act4 and the Unifom1 Penalty and Interest

### Act5 as ifthose proYisions were set forth in this Section.
Persons subject to anytax imposed under the authoritygranted in this Section may reimburse themselves for their sellers' tax liabilityby separatelystatingthe tax as anadditional charge,which charge maybe statedincombination,in asingle amount, with State tax which sellers are required to co\lectunderthe Use Tax Act, 6 pursuantto such bracketed schedules as the Department may prescribe.
Whenever the Department determines that a refund should be made under this Section to a claimant instead ofissuing a credit memorandum, the Department shall notify the StateComptroller, who shall causethe orderto be drawn forthe amount specified and to the person named in the notification from the Department. The refund shall be paid by the State Treasurer out ofthe State Metro~East Park and Recreation District Fund.

i l-:'i605!30. Taxes, IL ST CH 70 § 1605130

(b) Ifa tax has been imposed under subsection (a), a service occupation tax shall also be imposed at the same rate upon all persons engaged. in the District, in the business ofmaking sales ofservice, who, as an incident to making those sales ofservice. transfer tangible personal property within the District as an incident to a sale of se1Yice. This tax may not be imposed on sales offood for human consumption that is to be consumed offthe premises where it is sold (other than alcoholic beverages. soft drinks. and food prepared for immediate consumption) and prescription and non-prescription medicines, drngs, medical appliances, and insulin, urine testing materials. syringes. and needles used by diabetics. The tax imposed under this subsection and all ciYil penaltiesthat may be assessed as an incident thereofshall be collected andenforcedbythe Department ofRevenue. The Department has full power to administer and enforce this subsection: to collect all taxes and penalties due hereunder; to dispose oftaxes and penalties so collected in the mannerhereinafter provided; and to detem1ine all rights to credit memoranda arising on account ofthe erroneous payment oftax or penalty hereunder. In the administration of, and compliance with this subsection, the Department and persons who are subject to this paragraph shall (i) haYe the same rights, remedies, pri\·ileges, immunities.powers, and duties, (ii) be subjectto the same conditions, restrictions. limitations,penalties. exclusions. exemptions, anddefinitions oftenns,and (iii) employ the samemodes ofprocedure as arepresc1ibed in Sections 2 7 (exceptthat the reference to State in the definition ofsupplier maintaining a place ofbusiness in this State shall mean the District), 2a, 2b, 2c, 3 through 3-50x (in respect to all provisions therein other than the State rate oftax), 4 '' (except that the reference to the State shall be to the District), 5. 7. 8 111 (except that thejurisdiction to which the \ax shall be a debt to the extent indicated in that Section 8 shall be the District), 9 11 (except as to the disposition oftaxes and penalties collected). 

### !O, 11, 12 12 (except the reference therein to Section 2b ofthe Retailers' OccupationTax Act), 13 13 {except that any reference to the State shall mean the District), Sections 15, 16. 17, 18, 19 and 20 ofthe Ser\"ice Occupation Tax Act J..t and the Unifonn Penalty and Interest Act, as fully as ifthose provisions were set forth herein.
Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their serviceman's lax liability by separately stating the tax as an additional charge, which charge may be stated in combination, in
a single amount, with State tax that servicemen are authorized to collect under the Service Use Tax Act, 15 in accordance with suchbracket schedules as the Department may prescribe. Whenever the Depmiment determines that a refund should be made under this subsection to a claimant instead ofissuing a creditmemorandum. the Department shall notifythe State Comptroller, who shall cause the warrant to be drawn forthe amount specified. and lo the person named. in the notification from the Department. The refund shall be paid by the State Treasurer out ofthe State Metro-East Park and Recreation District Fund. Nothing in this subsection shall be constmed to authorize the board to impose a tax upon the privilege of engaging in any business which under the Constitution ofthe United States may not be made the subject oftaxation by the State.
(c) The Department shall immediately pay over to the Stale Treasurer, ex officio, as trnstee, all taxes and penalties collected underthis Sectiontobe deposited into the State Metro-East Park and Recreation DistrictFund, which shal! be an unappropriated tmst fund held outside ofthe State treasury. As soon as possible after the first day of each month, beginning January I, 2011, upon certification of the Depa11ment of Revenue, the Comptroller shall ordertransferred, and the Treasurer shall transfer, to the ST AR Bonds Revenue Fund the local salestax increment, as defined in the Innovation Development and Economy Act, collectedunder this Section duringthe second preceding calendarmonth for sales within a STAR bond district. The Department shall makethis certification onlyifthe Metro East Park and Recreation District imposes a tax on real prope11y as provided in the definition of"local sales taxes" under the Innovation Development and EconomyAct. 

### I



### (1605/30. Taxes, IL ST CH 70 § 1605130

Afterthe monthlytransfer to the ST ARBondsRe,·enueFund, onorbeforethe 25thday ofeachcalendarmonth. the Depaitment shall prepare and certify to the Comptroller the disbursement of stated sums ofmoney pursuant to Section 35 ofthis Act to the District from which retailers have paid taxes orpenalties to the Department during the second preceding calendar month. The amountto be paidto the District shall be the amount (no! including credit memoranda) collected underthis Section during the second preceding calendar month by the Department plus an amount the Department determines is necessary to offset any amounts that were erroneously paid to a different taxing body. and not including (i) an amount equal to the amount of refunds made during the second preceding calendarmonth bythe Departmentonbehalfofthe District, (ii) any amount that the Department determines is necessary to offset any amounts that were payable to a different taxing body but were erroneously paid to the District, and (iii) any amounts that are transferred to the STAR Bonds Revenue Fund. Within 10 days afterreceipt by the Comptroller ofthe disbursement certification to the District provided for in this Section to be gi\·en to the Comptroller bythe Department. the Comptroller shall cause the orders to be drawn for the respective amounts in accordance ,vith directions contained in the certification.
(d) Forthe purpose ofdetennining\\"hether a tax authorizedunderthis Section

### is applicable, a retail salebya producerofcoal or anothermineral mined inIllinois is a sale atretail at the place where the coal orothermineral mined inIllinois is extracted from theearth. Thisparagraph does not apply to coal oranother mineral whenit 

### is de!i,·ered orshippedbythe sellerto the purchaserat a point outsidell!inois so thatthe saleis exemptunderthe United StatesConstitution as a salein interstate orforeign commerce.
(e) Nothing in this Section shall be constrned to authorize the board to impose a tax upon the privilege ofengaging in any business that under the Constitution ofthe United States maynot be made the subject oftaxation by this State.
(f) An ordinance imposing a tax underthis Section or an ordinance extending the imposition ofa tax to an additional countyor counties shall be certified bythe board and filed with the Department ofRevenue either (i) on orbefore the first day ofApril, wherenpon the Department shall proceed to administer and enforce the tax as ofthe first day ofJulynext following the filing; or (ii) on or before the first day ofOctober. whereupon the Department shall proceed to administer and enforce the tax as of the first day ofJanuary next following the filing.
(g) When certifying the amount ofa monthly disbursement to the District under this Section, the Depa1tment shall increase or decrease the amounts by an amount necessary to offset any misallocation ofprevious disbursements. The offset amount shall be the amount erroneously disbursed within the previous 6 months from the time a misallocation is discovered.

Cn·dits P.A. 91-103.**~** 30, etl July 13, 1999. Amended by P.A. 96-939.**~** 85, eff. June 24. 2010: P.A. 98-109.'l, § 70. eff. Aug. 26, 2014: P.A. 99-217.**~** 35. dT July 31, 2015.

Footnotes 35 !LCS 120 I dscq. 2 35 lLCS 120·1, 120·Ja, 120 la-I, l2U'ld, 120'1c, 120 lf, 120'!i, !20 lj, 120 lk. 12!l'lm. 120 111, 120·2, 120·2-5, 12{J 2-5.5, and 120 2-IO. 3 }5 ILCS l'.'.0 2-12, 120 2·15 to 120'2"70, J20·'2a. 120 lb, l20'2c, and 120'3. 4 35 JLCS 120.'-t. 120 5, 120 5a, 120 5b, 120 5~. 120 5d. 120·5~, 120 5[, l.'.:0.'5g. L!0"5h, 120 5i. 120 5j. 120,5k, 120'5/, 120 6. 120 ()8, 120:6b.1206c.120"7, 120·8.1209.1.20 !O. !20'11.120 1 1\a.120·1.2,and l'.'0·13. 5 35 JLCS 73~'3-I et seq. 6 35 JLCS 105"1 cl seq.1605130. Taxes, IL ST CH 70 § 1605!30

7 35JLCS1l52. 8 351LCS 1152a. !152b.1152~and ll53lo 1153-50. 9 351LCSl154. 10 351LCS1155.1157.andll58. l l 35 ILCS ll5 9. ]:': 35ILCS11510.115ll.andll5·12. 

### 13 35LLCS120.'.:b. 14 35 JLCS J15 !5. l )5 lfl. 115 17, 115 JS. 115'19, and 115'20. 15 351LCS1101.:1;0.,q. 70 I.L.C.S. 1605130. IL ST CH 70 § 1605130 Currentthrough P.A. 99-487 ofthe 2015 Reg. Sess.



### (

(

## ( 515-1006.5. Special County Retailers' Occupation Tax For Public

..., 55 JLCS 5/5-1006.5



### 55ILCS 5/5-1006.5 fVEST'S 

### SMITH-HURD ILLINOIS COMPILED STATUTESANNOTA1ED CHAPTER55. COUNTIES ACT 5. COUNTIES CODE ARTICLE 5. POWERS AND DUTIES OF COUNTYBOARDS DIVISION 5-1. IN GENERAL
515-1006.5. Special CountyRetailers' Occupation Tax For Public Safety

§ 5-1006.5. Special County Retailers' Occupation Tax ForPublic Safety. (a) The county board ofany county may impose a tax upon all persons engaged in the business ofsel!ing tangible personal property, otherthan personal property titled or registered with an agency ofthis State's government, at retail in the county on 

### the gross receipts from the sales made in the course ofbusiness to proYide revenue to be used exclusively for public safety purposes in that county, ifaproposition for the tax has been submitted to the electors ofthat county and approvedbya maj01ity ofthose voting on the question. 

### Ifimposed, this tax shall be imposed only in one-quarter percent increments. By resolution, the county board may order the proposition lo be submitted at any election. The county clerk shall certify the question to the properelection authority, who shall submit the proposition at anelection in accordance wilh the general election law.

The proposition shall be in substantiallythe following fonn:

"Shall (name ofcounty)be authorizedto impose a public safety tax at the rate of

... upon all persons engaged in the business ofsellingtangible personal property at retail in the county on grossreceipt~ from the sales made in the course oftheirbusiness to beused for crimepre\'ention, detention. and otherpublic safetypurposes?" Votes shall be recorded as Yes or No. Ifa majority of the electors voting on the proposition vote in favor ofit. the county may impose the tax. This additional tax may notbe imposed on the sales offood for human consumption that is to be consumed offthe premises where it is sold (other than alcoholic beverages, soft drinks, and food which has been prepared for immediate consumption) and prescription and non-prescription medicines, drugs, medical appliances and insulin, urine testing materials. syringes, and needles used by diabetics. The tax imposed by a county under this Section and all civil penalties that may be assessed as an incident ofthe tax shall be collected and enforced by the Illinois Department ofRevenue. TI1e certificate ofregistration that is issued by the Department to a retailer under the Retailers' Occupation Tax Act [F~l] shall pem1it the retailer to engage in a business that is taxable without registering separately with the Department under an ordinance or resolution under this Section. The Departmenthas full powerto administer and enforce this Section, to collect all taxes andpenalties due underthis Section, to dispose oftaxes and penalties so collected in the manner provided in this Section, and to detennine all rights to credit memoranda arising on account ofthe erroneous payment ofa tax orpenalty under this Section. In the administration of and compliance with this Section, the Department and persons who are subject to this Section shall (i) haxe the same rights, remedies, privileges, immunities, powers, and duties, (ii) be subject to the same conditions, restrictions, limitations, penalties, and definitions oftenns, and (iii) employ the same modes ofprocedure as are prescribed in Sections 1, 1 a, 1 a-1, Id, 1 e, If, Ji, lj, 2, 2-10 [FN2] (in respect to a!l provisions contained in those Sections other than the State rate oftax), 2-40, 2a, 2b, 2c, 3 [FN3] (except provisions relating to transaction returns and quarter monthly payments), 4, 5, Sa, 5b, 5c, 5d, Se, 5[, 5g, Sh, Si, 5j, 5k, 5/, 6, 6a, 6b, 6c, 7, 8, 9, 10, II, Ila, 12, and 13 ofthe Retailers' Occupation Tax Act [FN4] and Section 3-7 ofthe Unifon11 Penalty and Interest Act [FN5] as ifthose provisions were set forth in this Section. Persons subject to any tax imposed under the authority granted in this Section may reimburse themselves for their sellers' tax liability by separately stating the tax as an additional charge, which charge maybe stated in combination, in a single amount, with State tax which sellers are required to collect underthe Use Tax Act, [Fl\'6] pursuant to such bracketed schedules as the Department mayprescribe.

Wheneverthe Depmtment determines that a refund should be madeunder this Section to a claimantinstead ofissuing a credit memorandum,the Department shall notify the State Comptroller, who shall cause the orderto be drawn forthe amountspecified5i5-1006.5. Spcci.;l County Retailers' Occupation Tax For Public

..., 55 ILCS 5/5-1005.5

and to the person named in the notification from the Department. The refund shall be paid by the State Treasurer out ofthe County Public Safety Retailers' Occupation Tax Fund.

(b) If a tax has been imposed under subsection (a), a service occupation tax shall also be imposed at the same rate upon all persons engaged, in the county. in the business ofmaking sales of service, who, as an incident to making those sales of service. transfer tangible personal propertywithin the county as an incident to a sale ofservice. This tax may not be imposed on sales offood for human consumption that is to be consumed offthe premises where it is sold (other than alcoholic beverages, soft drinks, and food prepared for immediate consumption) and prescription and non-prescription medicines, drugs. medical appliances and insulin, urine testing materials. syringes, and needles used by diabetics. The tax imposed under this subsection and all civil penalties that maybe assessed as an incident thereofshall be collected and enforcedbythe Department ofRe\'enuc. The Department has full power to administer and enforce this subsection; to collect all taxes and penalties due hereunder: to dispose oftaxes and penalties so collected in the manner hereinafter proYided; and to detem1ine all rights to credit memoranda aiising on account ofthe enoneous payment oftax or penalty hereunder. In the administration of, and compliance with this subsection, the Depaitment and persons who are subject to this paragraph shall (i) have the same iights, remedies, priYileges, immunities, powers, and duties, (ii) besubject tothe same conditions,restrictions, limitations, penalties, exclusions. exemptions, and definitions ofterms, and (iii) employ the same modes ofprocedure as are prescribed in Sections la-I, 2 (except that the reference to State in the definition ofsupplier maintaining aplace ofbusinessin this State shall meanthe county), 2a. 3through 3-50 (in respect to all proYisions therein otherthan the State rate oftax). 4 (except that the reference to the State shall be to the county), 5, 7. 8 (except that thejurisdiction to which the tax shall be a debt to the extent indicated in that Section 8shall be the county), 9 (except as to the disposition oftaxes and penalties collected, and except that the retW11ed merchandise credit for this tax may not be taken against any State tax). 1 0, 11, 12 (except the reference therein 

### to Section 2b ofthe Retailers' Occupation Tax Act), 13 (except that any reference to the State shall mean the county), the first paragraph ofSection 15. 16, 17, 18, 19 and 20 ofthe Service Occupation Tax Act [Fl\7] and Section 3-7 ofthe Unifom1 Penalty and Interest Act, as fully as ifthose provisions were set forth herein.

Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their serYiceman's tax liabilityby separately stating the tax as an additional charge, which charge may be stated in combination, in a single amount, with Stale tax that servicemen are authorized lo collect under the Service Use Tax Act, [FN8] in accordance with such bracket schedules as the Depa1tment mayprescribe.

Whenever the Department determines that a refund should be made under this subsection to a claimant instead ofissuing a credit memorandum, the Department shall notify the State Comptroller,who shall cause the warrant to be drawn forthe amount specified, and to the person named, in the notification from the Department. The refund shall be paid by the State Treasmer out ofthe County Public Safety Retailers' Occupation Fund. Nothing in this subsection shall be construed to authorize the county to impose a tax upon the privilege ofengaging in any business which under the Constitution ofthe L'nited States may not be made the subject oftaxation by the State.

(c) The Department shall immediatelypayoverto the State Treasurer, Ex Officio, as trustee, all taxes and penalties collected under this Section to be deposited into the County Public SafetyRetailers' Occupation Tax Fund, which is created in the State treasury. On or before the 25th day ofeach calendar month. the Department shall prepare and certify to the Comptroller the disbursement of stated sums ofmoney to the counties from which retailers have paid taxes or penalties to the Depmtment duiing the second preceding calendar month. The amount to be paid to each county shall be the amount (not including credit memoranda) co!lected under this Section during the second preceding calendar month by the Department plus an amount the Department detennines is necessa1y to offset any amounts that were erroneously paid to a different taxing body, and not including (i) an amount equal to the amount ofrefunds made during the second preceding calendar month by the Department on behalf of the county and (ii) any amount that the Department detennines is necessary to offset any amounts that \Vere payable to a different taxing body but were erroneously paid to the county. Within JO days after receiptby the Comptroller of the disbursement certification to the counties provided for in this Section to be given to the Comptroller by the Department, the Comptrol!er shall cause the orders to be drawn for the respective m11ounts in accordance with directions contained in the certification.

In addition to the disbursement required by the preceding paragraph, an allocation shall be made in March ofeach year to eachcounty that received more than £500.000 in disbursements under the precedingparagraph in the preceding calendaryear. The allocation shall be in an amount equal to the average monthly distribution made to each such county under the preceding 

### (5/5-1006.5. Special County Retailers' Occupation Tax For Public

..., 55 ILCS 5i5-10065
paragraph during the preceding calendaryear (excluding the 2 mont11s ofhighest receipts). The distribution made in March of each year subsequent to the yearin which an allocationwas made pursuantto this paragraph and the preceding paragraph shall be reduced by the amount allocated and disbursed under this paragraph in the preceding calendar year. The Department shall prepare and certifyto the Comptrollerfor disbursement the allocations made in accordance with this paragraph.

(d) For the purpose ofdetennining the local governmental unit whose tax is applicable, a retail sale by a producer ofcoal or anothermineral mined in Illinois is a sale at retail at the placewherethe coal orothermineral minedin !llinois 

### is extracted from the earth. This paragraphdoes notapply tocoal oranothermineral whenit

### is delivered orshippedbythe seller to thepurchaserat a point outside Illinois so thatthe sale is exemptunderthe United States Constitution as a sale in interstate or foreign commerce.

(e) Nothing in this Section shall be constrned to authorize a county to impose a tax upon the priYilege ofengaging in any business that under 

### the Constitution ofthe L'nited States may notbe made the subject oftaxation bythis State.

(f) The results ofany election autl1orizing a proposition to impose a tax underthis Section oreffecting a change in the rate of tax shall be certified by the county clerk and filed with the Illinois Department ofRevenue on or before the first day ofJune. The Illinois Department ofReYenue shall then proceed to administer and enforce this Section as ofthe 

### first day ofJanuaiy next following the 

### filing.

(g) When ce11ifying the amount of

### a monthly disbursement to a county under this Section, the Department shall increase or decrease the amounts by an amount necessary to offset any miscalculation ofprevious disbursements. The offset amount shall be the amount erroneously disbursed within the previous 

### 6 months from the time a 111iscalculation is discovered.

(h) This Section maybe cited as the "Special County Occupation Tax ForPublic Safety Law". CREDJT(S) 1997 Electronic Pocket Part Update P.A. 86-962,Art. 5, §5-1006.5, addedbyP.A. 89-107, § 10,eff.Jan. 1, 1996. Amendedby P.A. 89-7 l8. § 10, eff. March7, 1997.

[fi\1]35 ILCS 120 I et seq. [FA2]35 ILCS 120 1, 120· la, 120 Ia-l, !20 Id, 120'le, 120 lf, 120· Ii, l20 lj, 120 2, and 120 2-!0. [Fl\3]35 ILCS 120·2-40, l20·2a. J2U·2b, !20 2c, and 120·3. [FN-J.]35 ILCS 120 4, 120 5, 1:'0 Sa, 120 Sb, J2(J.'5c, 120 Sd, l20·5e, 120 Sf, 120 5g, 120 Sh, 120 5i, 120 5j, 120,..Sk, 120,51,

120·6, 120 6a, 120'(1b, l20 6c, J20·7, 120 8, 120 9, 120:JO, 120 11, !20: I In, 120 12. and l:'0'13. [FN5]35 !LCS 735'3-7. [FN:6]35 ILCS 105 11 et seq. [Fl\"7]35 !LCS 11 5· 15, l l 5 l6, l l 5 1 7, 

### JJ5.118, 115 19 and 115,20. [fl\"8]35 ILCS I!O· J et seq. l-lISTORICAL AND STATUTORY NOTES P.A. 89-718, in subsec. (a), in the first sentence of the first paragraph, deleted "with a population in excess of 180,000 inhabitants, as detenninedby the most recent decennial census," following "any county".

### (



### (

### ( 515-1006.5. Special County Retaflers' Occupation Tax For

.... JL ST CH 55 §

...



### West's Smith-Hurd Illinois Compiled StatutesAnnotated Chapter55. Counties

Act 5. 

### Counties Code (Refs & 

### Annos)

Article5. Powers and Duties ofCounty Boards Dhision 5-1. In General 55 ILCS 

### 5/5-1006.5 5/5-1006

..5. 

### Special County Retailers' Occupation Tax For Public Safety. Public Facilities, orTransportation Effective: July31, 2015 Currentness**~** 5-1006.5. Special County Retailers' Occupation Tax ForPublic Safety, Public Facilities, or Transportation.
(a) The county board ofany county may impose a tax upon all persons engaged in the business ofselling tangible personal property, otherthan personal propertytitled orregistered with an agency ofthis State'sgovernment, at retail in the countyonthe gross receipts from the sales made in the course ofbusiness to provide revenue to be used exclusively for public safety, public facility, ortransportation purposes in that county, 

### ifa proposition for the tax has been submitted to the electors ofthat county and approYed by a majority ofthose voting on the question. 

### Ifimposed, this tax shall be imposed only in one-quarter percent increments. By resolution, the county board may order the proposition to be submitted at any election. Ifthe tax is imposed for transportation purposes for expenditures for public highways oras authorized underthe lllinois Highway Code, the county board must publish notice ofthe existence ofits long-range highway transportation plan as required or described i11 Section 5-301 ofthe Illinois Highway Code and must make the plan publicly :wailable prior to approval ofthe ordinance orresolution imposing the tax. Ifthe tax is imposed for transportation purposes for expenditures for passengerrail transportation, the county boardmust publish notice ofthe existence ofits long-range passengerrail transpo1iation plan and must makethe planpublicly availableprior to approval ofthe ordinance or resolution imposing the tax. Ifatax is imposedfor public facilities purposes, then the name ofthe projectmaybe included in the proposition at the discretion ofthe county board as detem1ined inthe enabling resolution. For example, the "'XXX Nursing Horne" or the "'YYY Museum".
The county clerk shall ce1tify the question to the proper election authority, who shall submit the proposition al an election in accordancewith the general election law.
(I) The proposition for public safetypurposes shall be in substantially the following form:
"To pay for public safety purposes, shall (name ofcounty) be authorized to impose an incn:asc on its share oflocal sales taxes by (insert rate)?"
As additional infom1ation on the ballot be]O\v the question shall appear the following:
"This would mean that a consumer would pay an additional (insert amount) in sales tax for cve1y SJOO oftangible personal propertybought at retail."
The county board may also opt to establish a sunset provision at which time the additional sales tax would cease being collected, ifnot tenninatcd earlier by a vote ofthe county board. Ifthe countyboard votes to include a sunsetprovision, the proposition for public safety purposes shall be in substantially the following fom1:515-1006,5. Special County Retailers' Occupation Tax FoL.,. !L ST CH 55 §

...

"To pay for public safety purposes, shall (name ofcounty) be authorized to impose an increase on its share oflocal sales taxes by (insert rate) for aperiod not to exceed (insert number ofyears)?" As additional information on the ballot below the question shall appear the following: ··This would mean that a consumer would pay an additional {insert amount) in sales tax for eve!)' S100 oftangible personal property bought at retail. Ifimposed. the additional tax would cease being collected at the end of(insert number ofyears), ifnol terminated earlier by a\"otc ofthe county board."
Forthe purposes ofthe paragraph. "public safetypurposes"means crime prevention, detention, fire fighting, police. medical, ambulance. or otheremergency serYices. Votes shall be recorded as "Yes·· or "No''. Beginning on the January 1 or July 

### 1. whichever is first. that occurs not less than 30 days after the effective date of this amendatory Act ofthe 99th General Assembly, Adams Countymay impose a public safetyretailers' occupation tax and service occupation tax at the rate of0.25%. as provided in the referendum approved by the voters on April 7, 2015, notwithstanding the omission ofthe additional infonnation that is otherwise required to be printed on the ballot below the question pursuant tothisitem(l).

(2) The proposition for transpmtation purposes shall be in substantially the following fom1: "To pay for improvements to roads and other transportation purposes, shall (name ofcounty) be authorized to impose an increase on its share oflocal sales taxes by (insert rate)?" As additionalinfmmation on the ballot below the question shall appear the following: "This would mean that a consumer would pay an additional (insert amount) in salestax for every 5100 oftangible personal property bought atretail." The county board may also opt to establish a sunset provision at which time the additional sales tax would cease being collected, ifnot terminated earlierbya vote ofthe countyboard. lfthe countyboard votes to include a sunsetprovision. the proposition for transportation purposes shall be in substantiallythe following fom1: "To pay forroad improvements and othertransportation purposes, shall (name ofcounty)beauthorized to impose an increase on its share oflocal sales taxes by (insert rate) for aperiodnot to exceed (insert number ofyears)?" As additional information on the ballot below the question sha11 app~ar the following: ·'This would mean that a consumer would pay an additional (inse11 amount) in sales tax for every S100 oftangible persona! property bought at retail. Ifimposed, the additional tax would cease being collected at the end of(insert number ofyears), ifnot terminated earlierby a vote ofthe county board."
For the purposes ofthis paragraph. transportation purposes means constn1ction, maintenance, operation, and improvement ofpublic highways, any otherpurpose for which a county may expend funds under the Il!inois Highway Code. and passenger rail transportation. The votes shall be recorded as "Yes" or "No"

.



## ., ,·' ' 

## ((



### ( 5,15-1006.5. Special County Retailers' Occupation Tax For

.... !L ST CH 55 §

...

(3) The proposition for public facilities purposes shall be in substantially the following form:
"To pay for public facilities purposes, shall (name ofcounty) be authorized to impose an increase on its share oflocal sales taxes by (insert rate)?"
As additional information on the ballot below the question shall appear the following: "This would mean that a consumerwouldpay an additional (insert amount) in sales tax for e\·ery 5100 oftangible personal propertybought at retail."
The county board may also opt to establish a sunset pro,·ision at which time the additional sales tax would cease being co!lected, ifnot terminated earlierby a vote ofthe county board. Ifthe countyboard votes to include a sunset provision. the proposition for public facilities purposes shall be in substantially the following fonn:
"To pay for public facilities purposes, shall (name ofcounty) be authorized to impose an increase on its share oflocal sales taxes by (insertrate) for a period not to exceed (insert number ofyears)?"
As additional infomrntion on the ballot below the question shall appear the fol!owing: ""This ,vould mean that a consumer would pay an additional (inserl amount) in sales tax for every 5100 oftangible personal property bought at retail. If imposed, the additional tax would cease being collected at the end of(insert number ofyears), ifnot terminated earlier by a vote ofthe countyboard:·
For purposes ofthis Section, ·•public facilities purposes" means the acquisition, development, constmction, reconstruction, rehabilitation, improvement, financing, architectural planning, and installation ofcapital facilities consisting ofbuildings, structures, and durable equipment and for the acquisition and improvement of real property and interest in real property required, or expected to be required, in connection with lhc public facilities, for use by the county for the furnishing of governmental services to its citizens. includingbut not limited to museums and nursing homes. The votes shall be recorded as "'Yes"' or "No".
Ifa majority ofthe electors voting on the proposition vote in favor ofit, the county may impose the tax. A county may not submit more than oneproposition authorized bythis Section to the electors at any one time. This additional tax may not be imposed on the sales offood for human consumption that is to be consumed offthe premises where it is sold (other than alcoholic beYerages, soft drinks, and food which has been prepared for immediate consumption) and prescription and non-prescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes, and needles used by diabetics. The ta1; imposed by a county under this Section and all civil penalties that may be assessed as an incidentofthetax shallbe collected and enforcedbythe Illinois DepartmentofRevenue and depositedinto aspecial fund created for that purpose. The certificateofregistration that is issued bythe Departmentto a retailerunder the Retailers' OccupationTax Act I shall pennitthe retailer to engage in a business thatis taxable withoutregistering separatelywiththeDepartmentunderan ordinance orresolution under this Section. The Department has full power to administer and enforce this Section, to collect all taxes and penalties due under this Section, to dispose oftaxes andpenalties so collected in the mannerproYided in this Section, and to determine all 1ights to credit memoranda arising on account ofthe enoneous payment ofa tax or penalty under this Section. In the administration ofand compliancewith this Section, the Department and persons who are subjectto this Section shall (i) have the same rights, remedies, privileges, immunities, powers, and duties, (ii) be subject to the same conditions, restrictions, limitations, penalties, and definitions ofterms, and (iii) employ the same modes ofprocedure as are prescribed in5.15-1006.5. Special County Retailers' Occupation Tax For
.... IL ST CH 55 §

...
Sections I, 1 a, 1 a- L Id. le, lf, Ii, lj, lk, Im, In. 2through 2-70:::: (in respect to all proYisions contained in those Sections other than the State rate oftax), 2a, 2b, 2c, 3 3 (except pro\'isions relating to transaction returns and quatier monthly payments), 4, 5. Sa, Sb. Sc. 5d, 5e, 5f. 5g. 5h, 5i, 5j, 5k, 5/. 6, 6a. 6b, 6c, 6d, 7, 8. 9, 10. 11, Ila, 12, and 13 ofthe Retailers' Occupation Tax Act-I and Section 3-7 ofthe IJnifonn Penalty and Interest Act 5 as ifthose provisions were set forth in this Section.
Persons subject to any tax imposed under the authority granted in this Section may reimburse themselves for their sellers' tax liability byseparately statingthetax as an additional charge. whichcharge may be stated in combination,in asingle amount, \Vith State tax which sellers are required to collectunder the Use Tax Act, 6 pursuantto such bracketed schedules as tlle Department may prescribe. Whenever the Depanment detem1ines that arefund should be made under this Section to a claimant instead ofissuing a credit memorandum. the Depmiment shall notifythe State Comptroller.v,rho shall cause the order to be drawn forthe amount specified and to the person named in the notification from the Department. The refond shall be paid by the State Treasurer out ofthe County Public Safety or Transportation Retailers' Occupation Tax Fund.
(b) Ifa tax has been imposed under subsection (a). a service occupation tax shall also be imposed at the same rate upon al! persons engaged, in the county, in the business ofmaking sales ofservice, who. as an incident to makingthose sales ofservice, transfer tangible personal property within the county as an incident to a sale ofsen,ice. This tax maynot be imposed on sales of food for human consumptionthat is to be consumed offthepremises where itis sold (other than alcoholicbeverages. soft drinks, and food prepared for immediate consumption) and prescription and non-prescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes, and needles used by diabetics. The tax imposed under this subsection and all civil penalties that may be assessed as an incident thereof shall be collected and enforced by the Department of Revenue. The Department has full power to administer and enforce this subsection; to collect al! taxes and penalties due hereunder; to dispose oftaxes and penalties so collected in the manner hereinafterpro\•ided; and to detennine all rights to credit memoranda arising on account ofthe erroneous payment oftax or penalty hereunder. In the administration of, and compliance with this subsection. the Department and persons who are subject to this paragraph shal! (i) have the same rights, remedies, privileges, immunities, powers, andduties, (ii) besubject to the same conditions,restrictions, limitations, penalties, exclusions. exemptions, and definitions oftern1s. and (iii) employ the same modes ofprocedure as are prescribedin Sections 2 (exceptthat the reference to State in the definition ofsupplier maintaining a place ofbusiness in this State shall mean the county), 2a, 2b, 2c, 3 through 3-50 7 (in respect to all provisions therein other than the State rate oftax). 4 (except that the reference to the State shall be to the county), 5, 7. 8 (exceptthat thejurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the county), 9 (except as to the disposition oftaxes and penalties collected), 1 0, 11, 12 (except the reference therein to Section 2b ofthe Retailers' Occupation Tax Act), 13 (except that any reference to the State shall mean the county), Section 15, 16, 17, 18, 19 and 20 ofthe Service Occupation Tax Act and Section 3-7 ofthe Uniform Penalty and Interest Act,)( as fully as ifthose provisions were set forth herein.
Persons subject to any tax imposed under tlle authority granted in this subsection may reimburse themselves for their serviceman's tax liability by separately stating the tax as an additional charge, which charge may be stated in combination, in
a single amount, with State tax that servicemen are authorized to collect under the Service Use Tax Act,') in accordance with such bracket schedules as the Department may presc1ibe. Whenever the Department determines that a refund should be made under this subsection to a claimant instead ofissuing a creditmemorandum, the Department shall notify the State Comptroller, who shall cause the warrantto be drawn for the amount specified, and to the person named, in the notification from the Department. The refund shall be paid by the State Treasurer out ofthe County Public Safety or Transportation Retailers' Occupation Fund.

### ( 5.'5·1006.5. Special County Retailers' Occupation Tax For.

... IL ST CH 55 §

... Nothing in this subsection shall be construed to authorize the county to impose a tax upon the privilege ofengaging in any business which underthe Constitution ofthe United States may not be made the subject oftaxation by the State.
(c) The Department shall immediately pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected under this Sectionto be deposited into the CountyPublic Safety orTransportationRetailers' Occupation Tax Fund, which shall be an unappropriated trnst fond held outside ofthe State treasury. As soon as possible after the first day of each month, beginning Januaiy 1. 2011. upon certification ofthe Department of Revenue. the Comptroller shall ordertransferred, and the Treasurer shall transfer. to the STARBonds Revenue Fund the local sales tax increment, as defined inthe Innovation DeYelopment and EconomyAct. collectedunderthis Section during the second preceding calendar month for sales within a STAR bond district. Aftertlie monthlytransfer to the STAR Bonds Revenue Fund, on orbefore the25thday ofeachcalendarmonth, the Department shall prepare and ce11ify to the Comptrollerthe disbursement ofstated sums ofmoney to the counties from which retailers have paid taxes orpenalties to the Department during the second preceding calendar month. The amount to be paid to each county, and deposited by the county into its special fund created for the purposes ofthis Section, shall be the amount (not including credit memoranda) collected under this Section during the secondprecedingcalendarmonth bythe Departmentplus an amount the Department determines is necessary to offset any amounts that were erroneously paid to a different taxing body, and not including (i) an amount equal to the amount ofrefunds made during the second preceding calendarmonth by the Department on behalfofthe county, (ii) any amount that the Departmentdetennines is necessary to offset any amounts that were payable to a different taxing bodybmwere erroneously paid to the county, and (iii) any amounts that are transferred to the STAR Bonds Re\·em1e Fund. Within 10 days after receipt by the Comptroller ofthe disbursement certification to the counties proYided for in this Section to be given to the Comptroller by the Department, the Comptroller shall cause the orders to be drawn for the respective amounts in accordance with directions contained in the certification.
In addition to the disbursement required by the preceding paragraph, an allocation shall be made in March ofeach year to each county that receiwdmore than S500,000 in disbursements under the preceding paragraph in the preceding calendaryear. The allocation shall be in an amount equal to the average monthly distribution made to each such county under the preceding paragraph during the preceding calendar year (excluding the 2 months ofhighest receipts). The distribution made in March of each year subsequentto the year in which an allocation was made pursuant to this paragraph and the preceding paragraph shall be reduced by the amount allocated and disbursed under this paragraph in the preceding calendar year. The Department shall prepare and certify to the Comptrollerfor disbursement the allocations made in accordance with this paragraph.
A countymay direct, by ordinance, that all or ap011ion ofthe taxes and penalties collectedunderthe Special County Retailers' OccupationTax ForPublic SafetyorTransportationbe deposited into the Transportation DevelopmentPm1nership Trust Fund.
(d) For the purpose ofdetennining the !ocal governmental unit whose tax is applicable, a retail sale by a producer ofcoal or another minernl mined in fllinois is a sale atretail al the place where the coal or othermineral mined in Illinois is extracted from the earth. Thisparagraphdoes notapplytocoal oranothermineral when it is delivered or shippedbythesellerto the purchaserat apoint outside 111inois so that the sale is exemptunderthe United States Constitution as a sale in interstate orforeign commerce.
(e) Nothing in this Section shall be construed to authorize a county to impose a tax upon the privilege ofengaging in any business that underthe Constitution ofthe United States may not be made the subject oftaxation by this State.515-1006.5. Special County Retailers' Occupation Tax For
.... IL ST CH 55 §

...

(e-5) Ifa county imposes a tax underthis Section, the countyboard may, by ordinance, discontinue orlowerthe rate ofthe tax. Ifthe county board lowers the tax rate ordiscontinues the tax. a referendum must be held in accordance with subsection (a) of this Section in order to increase the rate ofthe tax orto reimpose the discontinued tax.
(f) Beginning April I, 1998 and through December 31. 2013, the results ofany election authorizing a proposition to impose a tax under this Section or effecting a change in the rate oftax, or any ordinance lowering the rate or discontinuing 

### the tax, shall be ce11ified by the county clerk and filed with the Illinois Department ofRe\"enue either (i) on or before the fin;t day of April, \vhereupon the Department shall proceed to administer and enforce the tax as ofthe first day ofJuly next following the filing; or (ii) on orbefore the first day ofOctober. whereupon the Department shall proceed to administer and enforce the tax as ofthe first day ofJanuary next following the filing. Beginning January !, 

### 20I4, the results ofany election authorizing 

### a proposition to impose a tax underthis Section oreffecting an increasein the rate oftax, along with the ordinanceadopted to imposethe tax orincrease the rate ofthe tax, ornny ordinance adopted to lower the rate ordiscontinue the tax. shall be certified by the county clerk and filed with the Illinois Department of Revenue either (i) on orbefore the first day ofMay. whereupon the Department shall proceed to administer andenforce the tax as ofthe first day ofJuly next following the adoption and filing: or (ii) on or before the first day ofOctober, whereupon the Department shall proceed to administer andenforce the tax as of

### the first day ofJanuary next following 

### the adoption and filing.
(g) \Vhen certifying the amount ofa monthly disbursement to a county under this Section, the Department shall increase or decrease the amounts by an amount necessary to offset any miscalculation ofprevious disbursements. The offset amount shall be the amount erroneously disbursed within the previous 

### 6 months from the time a miscalculation is discovered.
(h) This Section may be cited as the ··special County Occupation Tax For Public Safety. Public Facilities, or Transportation Law"'.
(i) Forpurposes ofthis Section, ··public safety"includes, but 

### is not limitedto, crimeprevention, detention. fire fighting, police, medical, ambulance, or other emergency services. The county may shan! tax proceeds received under this Section for public safety purposes. including proceeds received before August 4, 2009 (the cffecfrve date ofPublic Act 96-124), with any fire protection district located 

### in the county. For the purposes of this Section, •'transportation" includes, but is not limited to, the constrnction, maintenance. operation, and improYemcnt ofpublic highways, any other purpose for which a county may expend 

### funds under the Illinois Highway Code, and passenger rail transportation. For the purposes of this Section, "public facilities purposes·· includes, but 

### is not limited to, the acquisition, development, construction, reconstruction, rehabilitation, improvement, financing, architectural planning, and installation of capital facilities consisting ofbuildings, strnctures, and durable equipment and for the acquisition and improvement ofreal property and interest in real propertyrequired, or expected to be required, in connection with the public facilities, for use by the county for the furnishing ofgovernmental services to its citizens, including but not limited to museums and nursing homes.
(j) The Department may promulgate rules lo implement Public Act 95-1002 only to the extent necessary to apply the existing rules for the Special County Retailers' Occupation Tax 

### for Public Safety to this new purpose 

### for public facilities.

Crrdits P.A. 86-962, Art. 5, § 5-1006.5, added by P.A. 89-107. § 10. cff. Jan. I, !996. Amended by P.A. 89-718,

# *10, eff. ;\farch 7, 1997; P.A. 90-190, § 3. eff July 24, 1997: P.A. 90-267.**~** 5, eff. July JO, 1997; PA 90-552, § 32, eff Dec. 12, 1997; P.A. 90-562, § 30. 

### <:ff. Dec. 16. !997; P.A. 90-655.**~** 52. dT. July 30. 1993; P ..-\. 90-689, § 5. eff. July 31. 1998: P.A. 93-556, § 

### (

### ( 5/5-1006.5. Special County Retailers' Occupation Tax For

... IL ST CH 55 §

...
5. 

### eff

.. ..\ug. 20. 2003: P.A. 94-nl.**~** 30. 

### elf \foy 19, :?.006: P.A. 95-F-1-,**~** 5. eff. Jun.!, 2001\: P.A. 95-1002.**~** 5. eff l\o\. 20. 200(\: P.A. 96-124.**~** 5. etl. Aug. 4, 2009; P.A. 96-622. § 5, eff. Aug. 

### 24. 2009; P.A. 96-845.**~** IU. eff. July!. 20!2; P.A. 96-939.**~** 67. eff. June 24. 201U; P.A 96-100\1,**~** 240. eff. July 2. 2010; P.A. 98-51\4.**~** 30. eff. Aug. 27. 2013; P.A. 99-4,**~** 3. eff. \fay 31. 2015; P.A. 99-217.**~** 20. eff. July 31. 2015.

Notes ofDe..:i~ions ( I

### J

Footnotes 35 ILCS 120 I cl ~c:q. 2 35 !LCS 120 I. J.:'() la. 120 la-I. 120 ld. 120 k. 120 !(. l::'.ll li, 120 lj. 120 IL 120 Im. l::'.O In. !202. 1202-5. 12.02-5.5. 120 2-JU. J }5 ILCS 120·}-15 through 120 2-7U. 120 la. 12ll lb. 120 2c. 120 3. 4 ~5 ILCS 120 -1. 120 5.120 5a.12U :ib. 120 5c. 12ll5d.12U 5<:. 120 5f.120 5g.. fonnerlll.Rcv.Stat.Chaptcr 120.i:444h(rcpealed).35 ILCS 120 5i. l2U'5j, 12U 5k. !2U 5/, 120 6, 12(1 Ori.. 120 6b. 120 h~. l2U 7, 12U :::. I::'0 9. l2U 10. 120 11. 120 \ la. 120 12. and 120 13. 

# s 35 ILcs-35·3.7_ 6 35ILCS1051<:1,e4. 7 35 !LC'S 115 211, 115 2b. 115 le. 115"3 to !15 .3-50.**~** 35 ILCS 115 l5. 115 I6, l 15 17, l 15 J8, 1J5 1 tJ. and I 15 '20. 9 35 ILCS 110'1 ot,;~q. 55 I.L.C.S. 5.15-1006.5. IL ST CII 55**~** 5/5-1006.5 Current through P.A. 99-487 ofthe 2015 Reg. Sess.

### (

### ( 1251310. Environmental impact fee: imposition. 415 !LCS 1251310



### 415 ILCS 125/310 WEST'S 

### SMITH-HURD ILLINOIS COMPILED STATUTES ANNOTATED CHAPTER

### 415. ENVIRONMENTAL 

### SAFETY ACT 

### 125. THE ENVIRONMENTAL IMPACTFEE

### LAW
12513

### J0. E1wironme111al impact fee; imposition**~** 310. Environmental impact fee: imposition. Beginning January 

### J, 1996, 

### all receivers offuel are subject to anenvironmental impact fee of560 per 7.500 gallons offuel. or an equivalent amountper fraction thereof, that is sold orused in Illinois. The fee shall be paid by the receiver in this State who first sells or uses the fuel. The environmental impact fee imposed by this Law replaces the fee imposed under the correspondingprovisions ofArticle 

### 3 ofPublic Act 89-428. Em·ironmental impactfees paid under that Article 

### 3 shall satisfy the receiver's corresponding liabilityunderthis Law.

A receiver offuels is subjectto the fee without regard 

### to whetherthe fuel 

### is intended to be used for operation ofmoton·ehicles on the public highways and waters. However. no fee shall be imposed upon the importation or receipt of aviation fuels and kerosene at airports with over 170.000 operations peryear, located 

### in a city 

### ofmore than l.000,000 inhabitants, for sale 

### to or use by holders of certificates ofpublic convenience and necessity or foreign air canier pennits. issued by the United States Department ofTransportation, and their air carrier affiliates, or upon the imp011ation or receipt ofaYiation fuels and kerosene at facilitie.<; owned or leased by lhose certificate or permit holders and used in their activities at an airport described above. In addition, no fee may be imposedupon the importation orreceipt ofdiesel fuel by a rail carrierregistered under Section l 8c-7201 ofthe lllinois Vehicle Code [FN I] and used directly in railroad operations. In addition. no fee may be imposed whenthe sale is made with delive1y to a purchaser outside this State orwhenthe sale is made to a person holding a valid license as a receiver. In addition, no fee shall be imposed upon diesel fuel consumed or used in the operation ofships, barges, orvessels, that are used primarily in or for the transportation ofproperty in interstate commerce for hire on riYers bordering on this State, ifthe diesel foel is deliYered by a licensed recei\'er to the purchaser's barge, ship, or ,·essel while it is afloat upon that bordering riYer. 

### A specific notation thereofshall be made on lhe invoices or sales slips coYering each sale. CREDIT(S) 1997 Electronic Pocket Part Update P.A. 89-428, Art. 3, § 310, eff. Jan. I. 1996; 

### PA 89-457, Art. 

### 3, § 310, eff. May 22, 1996. Amended by P.A. 89-468, § 10. etf. Jan. 

### 1, 1997.

[Fl\lJ 625 ILCS 5dSc-7.'.::0l. REPEAL OF ACT <For repeal ofAct, see4 !5 \LCS 125,'390.> HlSTORICAL AND STATUTORY NOTES Section as added by P.A. 89-457 included the text as added by P.A. 89-428. P.A. 89-468, inthe second paragraph. inserted the fiHh sentence. See 5 ILCS 70·6 as to the effectof(I) more than one amendment ofa section at the same session ofthe General Assembly or (2) 1'No ormore acts relating to the same subject matter enactedby the same General Assembly.

i I

f!,-

### (125/310. Environmental impact fee; imposition, IL ST CH 415 § 125/310



### West's Smith-Hurd Illinois Compiled StatutesAnnotated Chapter

. .p5. Emironmental Safety Act 12.5. EmironmentalImpactFee Lavv (Refs &.Annos) 415 ILCS 125/310 125/310. Ernironmentalimpactfee; imposition EffectiYe: August 2, 2001 Currentness § 310. Environmental impact fee; imposition. Beginning January 

### 1. 1996, all receivers offuel are subject to an environmental impact fee ofS60 per 7,500 gallons offuel, oran equivalent amountperfraction thereof, that is sold orused in Jllinois. The fee shaU be paid by the receiver in this State who first sells or uses the fuel. The enYiromnental impact fee imposed by this Law replaces the fee imposed underthe c01respondingproYisions ofArticle

### 3 ofPublic Act 89-428. Environmentalimpactfees paid under that Article 

### 3 shall satisfy the recei\'er's coffesponding liabilityunderthis Law.
A receiver offuels is subject to the fee without regard to whetherthe fuel is intended to be used for operation ofmotorvehicles on the public highways and \Vaters. However, no fee shall be imposed upon the importation or receipt ofaviation fuels and kerosene at airports with over 170,000 operations peryear, located in a city ofmore than 1,000,000 inhabitants. for sale to or use by holders ofcertificates ofpublic com·enience and necessity or foreign air carrier permits, issued by the United States Department ofTranspo1iation, andtheir air emrier affiliates, orupon the importation or receipt ofaviation fuels and kerosene at facilities owned or leased by those certificate orpennitholders and used in their activities at an airport described above. In ( addition, no fee may be imposed upon the importation or receipt ofdiesel foci sold to orusedby a rail carrierregisteredunder Section I8c-720I ofthe Illinois Vehicle Code I orotherwiserecognizedbythe Illinois CommerceCommissionas arail carrier, to the extent used directly in railroad operations. In addition, no fee may be imposed when the sale is made \Vith delivery to a purchaser outside this State or when the sale is made to aperson holding a valid license as 

### a receiver. In addition, no fee shall be imposed upon diesel fuel consumed orused in the operation ofships, barges, orvessels, that are used primarily in or for the transportation ofproperty in interstate commerce for hire on rivers bordering on this State. ifthe diesel foe! is delivered by a licensedreceivertothe purchaser's barge, ship, orvessel while it 

### is afloat upon thatborderingriver. A specificnotation thereof shall be made on the invoices or sales slips covering each sale.

Credils P.A. 89-428. Art. 3. § 310, eff. Jan. I. 1996: P.A. 89-457, Att. 3,**~** 310. eff \lay 22. 1996. Amended by P.A. 89-468, § 10, eff. Jan. L !997; P.A. 90-14. Art. 2,**~** 

### 2-210. eff July!, 1997; P.A. 92-232,**~** 10, eff. Aug. 2. 2lHll.

REPEAL OFACT <For repeal ofAct. see415 ILCS 125.'390.>

Footnotes 6~5 JLCS 5'18c-7201. 415 1.L.C.S. 125/310, IL ST CH 415 § 125/310 Cu1Tent through P.A. 99-487 ofthe 2015 Reg. Sess.1251310. Environmental impact fee; imposition, IL ST CH 415 § 1251310



### (505/2a. T<Jx on receivers of fuel for sale or use; imposition. IL ST CH 35 § 505!2a

KcyCne Yellow Flag- l\cgativc Treatment Propo,cd Legislation



### West's Smith-Hurd Illinois Compiled Statutes ,\nnotated

Chapter 35. Re\·eime (Refs &.A.nnos)



### ExciseTaxes

Act50.5. 

### MotorFuel

### Tax Law (Refs 

### & r\nnos) 35ILCS 

### 505/2a Formerlycited as IL STCH 

### 120 '1418a 505/2a. Tax on receiwrs offucl

### for sale oruse; imposition EffectiYe: 

### August 10, 

### 2009 Currentness
§ 2a. Except as hereinafter provided. on and after January 1, 1990 andbefore January 1, 2025, a tax ofthree-tenths ofa cent pergallon is imposedupon the privilege ofbeing a receiver in this State offuel for sale oruse. The tax sha11 be paid by the recei\'cr in this State who first sells or uses fuel. In the case ofa sale, the tax shall be stated as a separate item on the invoice.
For the purpose of the tax imposed by this Section, being a receiYer of "motor fuel" as defined by Section 

### 1 I ofthis Act. ( and aYiation fuels, home heating oil and kerosene, but excluding liquifiedpetroleum gases, is subjectto tax withoutregard to whether the fuel is intended to be used for operation ofmotor whicles on the public highways and waters. However, no such tax shal! be imposedupon the importation or receipt ofaviation fuels and kerosene at airports with over300.000 operations per year, for years prior lo 1991, and over 170,000 operations peryearbeginning

### in 1991, located in a city ofmore than 1,000,000 inhabitants for sale to oruseby holders ofcertificates ofpublic convenience and necessity or foreign air carrierpermits, issued bythe United States Depatimcnt ofTransportation, and their aircarrier affiliates, orupon the importation orreceipt ofaviation fuels and kerosene at facilities owned or leased by those certificate orpennit holders and used in their activities at an airport described aboYe. In addition, no such tax shallbe imposedupon the importationorreceipt ofdiesel fuel sold to orusedby a 

### rail carrierregisteredpursuantto Section 

### ISc-

### 720I ofthe !llinois Vehicle Code 

### 1 orothenviserecognizedbythe Illinois Commerce Commission as a rail canier, to the extent used directly in railroad operations. In addition, no such tax shall be imposed when the sale is made with delivery to a purchaser outside this State or when the sale is made to a person holding a valid license as a receiver. ln addition, no tax shall be imposed upon diesel fuel consumed orused in the operation ofships, barges, orvessels, that are usedprimarily in orfor the transportation ofproperty in interstate commerce for hire on riversbordering on this State, ifthe diesel fuel is deliveredby a licensedrecei\·er to thepurchaser's barge, ship, orvessel while it is afloat upon thatbordering river. A specific notation thereofshall be made on the invoices or sales slips covering each sale.

Credits Laws 1929, p. 625, §2a, added by P.A. 86-125,**~** 2, eff. July 28. 1989. Amendedby P.A. i'l6-95S.**~** 2. eff. Dec. 5, 1989; P.A. 87-251. § 2. eff. Jan. 1, !992; P.A. 88-496, § !O. ~ff. Sept. 13, !993: P.A. 89-428, Art. 3, § 392. eff Jan. 1, 1996; P.A. 89-457, Art. 3. § 392. eff. \lay 22. 1996; P.A. 89-468.**~** 5, erf. Jan. I. 1997; P.A. 

### 92-232. § 5. cff. Aug. 2, 2001; P.A. %-l6l. § 5. dT. Aug. JO. 2009. Former!)' l!J.Rev.Stat.J 091. ch. 120, • 4 l8a

.



# .' f •t'505/2a. Tax on receivers offuel for sale or use; imposition. !L ST CH 35 § 505/2a

Footnotes (,:5 JLCS 5 ll<c""20L 35 LLC.S. 505f2a. IL ST CH 35 §505,'2a CmTent through P.A. 99-393 ofthe 

### 2015 Reg. Sess.



### (

## ( 505/2a. Tax on receivers of fuel for sale or use: imposition. IL ST CH 35 § 50512a



### West's Smith-Hurd Illinois 

### Compiled StatutesAnnotaled

Chapter 35. Revenue (Refs & 

### Annos)

Excise Taxes

Act 505. Motor

### FuelTax La,Y (Refs & 

### Annos) 35 ILCS 

### 505/2a Formerly cited asIL STCH 

### 120 "418a 505/2a.Tax onreceiwrs offuel for sale oruse; imposition Effectiw: 

### August 10, 2009 Currentness
§ 

### 2a. Except as hereinafter provided, on and after Janua1y 

### !, 1990 and before January 

### I. 2025. a tax ofthree-tenths ofa cent per gallon is imposed upon the privilege ofbeing a receiYer 

### in this State off11el for sale 

### or use. The tax shall be paid by the receiver in this State who first sells or uses fuel. In the case ofa sale, the 

### tax shall be stated as a separate item on the inYoice.
For the purpose ofthe tax imposed by this Section, being a receiver of"motor fuel'' as defined by Section 

### I.I ofthis Act, and aviation fuels, home heating oil and kerosene, but excluding liquified petroleum gases, is subject to tax without regard to whether the foe] 

### is intended to be used for operation ofmotorYehicles on the public highways and waters. !Iowever, no such tax shall be imposedupon the importation orreceipt ofaviationfoels and kerosene at airports withO\'er300,000 operations per year, for years priorto 1991, and O\"er 170,000 operations peryearbeginning in 199 I, located in a city ofmorethan 1,000,000 inhabitants 

### for sale to oruse by holders ofce11ificates ofpublic convenience andnecessityor foreign aircarrierpermits, issued by the United States Department ofTransportation. andtheir aircarrier affiliates, or upon the importation orreceipt ofa\'iation fuels andkerosene at facilities owned or leased by those certificate orpern1it holders and used in their activities at an airpo1t described above. In addition. no suchtax shall be imposeduponthe importationorreceipt ofdiesel fuel sold to orusedby a rail carrierregisteredpursuant to Section]Sc-

### 7201 ofthe Illinois Vehicle Code 

### I orotherwiserecognizedbythe I!linois Commerce Commission as a rail carrier, to the extent used directly in railroad optTdlions. In addition. no such tax shall be imposed when the sale is made with delivery to a purchaser outside this State or when the sale is made to 

### aperson holding a valid license as 

### a receiver. In addition, no tax shall be imposedupondiesel fuel consumed or used inthe operation ofships, barges, orvessels, that are used primarily in orfor the transportation ofproperty in interstate commerce for hire on 1iYers bordering on this State. ifthediesel foe] is deliveredby a licensedreceivertothe purchaser's barge, ship, or\'essel while it 

### is afloat uponthat bordering river. A specific notation thereofshall be made on the invoices or sales slips co\'ering each sale.

Credits Laws 1929, 

### p. 625, § 2a, addedby P.A. 86-125. § 2. eff. July 

### 28. ]989. Amended by P.A. 86-958.**~** 2. cff. Dec. 5. 1989: P.A. 87-251, § 2, eff. Jan. 

### I. 1992; P.A. 88-496, § l0. eff. Sept. !3, !993: P.A. 89-428, Art. 3, 

### §392. eff. Jan. 1, 1996: P.A. 89-457, Art. 3, § 392. eff. 

### \-Jay 22, J996; P.A. 89-468. § 5. cff. Jan. 1, !997; P.A. 92-232. § 5. cff. Aug. 2. 2001; P.A. 96-161, § 5. ell Aug. 10. 2009. Formerly Tll.Rev.Stat.199 l, ch. 120,**~** 4 l8a.

Footnotes50512a. Tm< on receivers of fuel for sale or use: imposition. IL ST CH 35 § 505 12a
(i'.'.5 !LCS 5 18c-7:::lll. 35 I.L.C.S. 505/2a, IL ST CH 35**~** 50512a Curr<!nt through P.A. 99-487 ofthe 2015 Reg. Sess.



### ((



## ( 5/5-1008.5. Use and occupation taxes. 55 !LCS 5/5-1008.5



### 55 ILCS 5/5-1008.5 

### WEST'S SMITH-HURD ILLINOIS COMPILED STATUTESANNOTATED CHAPTER 55. COUNTIES ACT 5. COUNTIES CODE 

### ARTICLE 5- PO\NERS AND DUTIES OFCOUNTY BOARDS DIVISION 5-1. IN GENERAL

5.15-1008.5. Use and occupation taxes

§5-1008.5. Use and occupationtaxes. (a) The Rock Island County Boardmay adopt a resolution that authorizes a referendum on the question ofwhetherthe county shall be authorized to impose a retailers' occupation tax, a service occupation tax, and a use tax at a rate of;!,, of 1 

### % on behalf ofthe economic development activities ofRock lsland County and communities located within the county. The county board shall certify the question to the proper election authorities who shall submit the question to the voters ofthe county at the next regularly scheduled election in accordance with the general election law. [Ft\I] The question shall be in substantially the following fonn:

Shall Rock Island County be authorized to impose a retailers' occupation tax, a sen>ice occupation tax, and a use tax at the rate of

### '14 ofI%, for the solepurpose ofeconomic de,·e!opment activities, including creation and retention of jobopporhmities, support ofaffordable housing opportunities. and enhancement ofquality ofJiff improYements? Votes shall be recorded as "yes" or '·no

... Ifa majority ofal! votes cast on the proposition are in favor ofthe proposition, the cotmtyis authorized to impose the tax.

(b) The county shall impose the retailers' occupation tax upon all persons engaged in the business ofsellingtangible personal property at retail in the county, at the rate approvedby referendum, on the gross receipts from the sales made in the course of those businesses within the county. This additional tax may not be imposed on the sale offood for human consumption that is to be consumed offthe premises where it is sold (other than alcoholic beverages, soft d1inks, and food that has been prepared for immediate consumption) and prescription and non-prescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes, and needles used by diabetics. Thetax imposed undathis Section and all ch·il penallies that may be assessed as anincidentofthe tax shall be collected and enforcedby theDepartment ofRevenue. The Department has full power to administer a11d enforce this Section: to collect all taxes and penalties so collected in the mannerprovided in this Section; and to detem1ine all rights to credit memoranda arising on account ofthe enoneous payment oftax or penalty under this Section. In the administration of, andcompliance with, this Section. the Department and persons who are subjectto this Section shall (i) have the same rights, remedies, privileges, immunities, powers and duties, (ii) be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions. and definitions ofte1111s, and (iii) employ the same modes ofprocedure as are prescribed in Sections 1, la. 1a-1. Ic, Id, 1 e, If, Ii, lj, Ik, Im. In, 2, 2-5, 2-5.5, 2-10 (inrespect to all provisions otherthan the State rate oftax), 2-15 through 2-70. 2a, 2b, 2c. 3 (except as to the disposition oftaxes and penalties collected and pro,·isions related to quarter monthly payments). 4, 5, 5a, Sb, Sc. 5d. Se, Sf, 5g, 5i, 5j, 5k, 5!, 6, 6a, 6b, 6c, 7, 8, 9, 10, l l, Ila, !2, and l3 ofthe Retailers' Occupation Tax Act [FN2] and Section 3-7 ofthe Uniform Penalty and Interest Act, [Ft\3] as fully as if those provisions were set forth in this subsection.

Persons subjectto any tax imposed under this subsectionmayreimburse themselves for their seller's tax liabilityby separately stating the tax as an additional charge, which charge may be stated in combination, in a single amount, 

### \Vith State taxes that se!lers arc required to collect, in accordance with bracket schedules prescribed by the Department. Whenever the Department determines that a refund should be made under this subsection to a claimant instead ofissuing a credit memorandum,the Department shall notify the State Complro!ler, who shall cause the warrantto be drawn for the amount specified, and to the person named, in the notification from the Department. The refund shall be paid by the State Treasurer out ofthe tax fund referenced under paragraph (g) ofthis Section.

Ifa tax is imposed under this subsection (b), a tax shall also be imposed at the same rate under subsections (c) and (d) of this Section.515-1008.5. Use and occup;ition taxes. 55 !LCS SiS-1008,5

Forthe purpose ofdetemtining whether a tax authorized under this Section is applicable, aretail sale, by aproducer ofcoal or anothermineral mined in Illinois. is a sale at retail at the place where the coal orothermineral mined in lllinois is extractedfrom tl1e earth. This paragraph does not apply to coal or another mineral when 

### it is deli\'ered or shippedbythe seller to the purchaser at apoint outside Illinois so that the sale is exempt underthe federal Constih1tion as a sale in interstate or foreign commerce.

Nothing in this Section shallbe construedto authorize the county to impose atax upon the privilege ofengaging in anybusiness that under the Constih1tion ofthe C"nited States may not be made the subject oftaxation bythis State.

{c} Ifa tax has been imposed under subse<:tion (b), a service occupation tax shall also be imposed at the same rate upon all persons engaged. in the county, in the business of making sales ofsen-ice. who. as an incident to making those sales of service, transfer tangible personal property within the county as an incident to a sale ofscrYice. This additional tax may not be imposed on the sale offood forhuman consumption that isto be consumed offthepremiseswhereit is sold (other than alcoholic beYerages. soft drinks. and food that has been prepared for immediate consumption) and prescription and non-prescription medicines. dmgs, medical appliances and insulin, urine testing materials. syringes, and needles used by diabetics. The tax imposed underthis subsection and all civil penalties that may be assessed as an incident ofthe tax shall be collected and enforced bythe Department ofRevenue. The Departmenthas full powerto administer and enforcethis paragraph: to collect all taxes and penalties due under this Section: to dispose oftax.es and penalties so collected in the manner provided in this Section: and to detennine all rights to creditmemoranda arising on account ofthe en-oneous payment oftax orpenaltyunderthis Section. In the administration of. and compliance with this paragraph. the Department and persons who are Sltbject to this paragraph shall (i) have the same rights, remedies, privileges, immunities, powers. and duties. (ii) be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions, and definitions oftem1s, and (iii) employ the same modes ofprocedure as are prescribed in Sections 2 (except that the reference to State in the definition ofsupplier maintaining a place ofbusiness in this State shall mean the county), 2a, 2b, 3 through 3-55 (in respect to all provisions other than the State rate oftax), 4 (except that the reference to the State shall be to the county). 5, 7, 8 (except that thejurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the county), 9 (except as to the disposition oftaxes and penalties collected, and except that the returned merchandise credit for this tax may not be taken against any State tax), I!, 12 [FJ\'4] (except the reference to Section2b ofthe Retailers' Occupation Tax Act), 13 (except that any reference to the State shall mean the county). 15, 16, ( 17. 18, 19 and 20 ofthe Service Occupation Tax Act [FNSJ and Section 3-7 ofthe Unifonn Penalty and Interest Act, as fully as ifthose provisions were set forlh ln this subsection.

Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their serviceman's tax liability by separately stating the tax as an additional charge, which charge may be stated in combination. in a single amount, with State tax that servicemen are authorized to collect under the Service Use Tax Act. [Fl\6] in accordance with bracket schedules prescribedby the Department.

Whene\'er the Department detennines that a refund should be made under this subsection to a claimant instead ofissuing a creditmemorandum, the Depaitment shall notify the State Comptroller, who shall cause the warrant to be drawn forthe amount specified, and to the person named, in the notification from the Depm1ment. The refund shall be paid by the State Treasurer out ofthe tax fond referenced under paragraph (g) ofthis Section.

Nothing in this paragraph shall be construed to authorize the county to impose a tax upon the privilege ofengaging in any business that under the Constitution ofthe United States may not be made the subject oftaxationby the State.

(d) Ifa tax has been imposed under subsection (b), a use tax shall also be imposed at the same rate upon the privilege of using. in the county, any item oftangible personal property that is purchased outside the county at retail from a retailer, and that is titled or registered at a location within the county with an agency ofthis State's government. This additional tax may nol be imposed on the sale of food for human consumption that is to be consumed off the premises where 

### it is sold (other than alcoholic beverages, soft drinks. and food that has been prepared for immediate consumption) and prescription and nonprescription medicines, drngs, medical appliances and insulin, urine testing materials, syringes, and needles used by diabetics. "Sellingprice" is defined as in the Use Tax Act. [F\"7] The tax shall be collectedfrompersons whose Illinois address fortitling orregistration purposes is given as being in the county. The tax shall be collectedby the Department ofRevenue forthe county. The tax must be paid to the State, or an exemption determination must be obtained from the Depmtment ofRevenue, before the title or ce1tificate ofregistration for the property maybe issued. The tax orproofofexemption may be transmitted to the Departmentby way ofthe State agencywith which, orthe State officerwith whom. the tangible personalproperty mustbe titled

### ( 5!5·1008.5. Usa and occupation taxes, 55 lLCS 515·1008.5

or registered 

### ifthe Department and the State agencyor State officer detennine that this procedure will expedite the processing ofapplications for title orregistration.

The Department has full power to administer and enforce this paragraph: to collect all taxes, penalties, and interest due under this Section: to dispose oftaxes, penalties, and interest so collected in the manner proYided in this Section: and to detennine all rights to credit memoranda or refunds arising on account ofthe erroneous payment oftax, penalty, or interest under this Section. In the administration of. and compliance with. this subsection. the Department and persons who are subject to this paragraph shall {i) haYe the same rights, remedies. pri\'ileges, immunities, powers, and duties, (ii) be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions, and definitions oftenns, and (iii) employthe same modes ofprocedure as are prescribed in Sections 2 (except the definition of"retailermaintaining a place orbusiness 

### in this State"), 3, 3-5. 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, 4, 6. 7, 8 (except that thejurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the county), 

### 9 (except provisions relating to quarter monthly payments), 

### IO, 11, 12. 12a, 12b, 13, 

### 14. 15, 19, 20, 21, and22 ofthe Use Tax Act 

### [F~8] and Section 3-7 ofthe L'niform Penalty and Interest Act, that are not inconsistelllwith this paragraph, as fully as ifthose provisions were set fo1th in this subsection.

Whenever the Department determines that a refund should be made under this subsection to 

### a claimant instead ofissuing a credit memorandum, the Department shall notify the State Comptroller, \Vho shall cause the orderto be drawn for the amount specified. and to the person named, in the notification from the Department. The refund shall be paid by the State Treasurer out ofthe tax fond referenced under paragraph (g) ofthis Section.

(e) A certificateofregistrationissued by the State DepartmentofRevenue to a retailerunderthe Retailers' OccupationTaxAct [F!\"9] or underthe Service Occupation Tax [Fl\" 10] Act shall permit the registrant to engage in a business that is taxed under the tax imposed underparagraphs (b), (c), or (d) ofthis Section and no additional registration shall be required. A certificate issued under the Use Tax Act or the Service Use Tax Act shall be applicable with regard to any tax imposed under paragraph (c) ofthis Section.

(f) The results ofany election authorizing a proposition to impose a tax under this Section or effecting a change in the rate oflax sha!l be certified by the proper election authorities and filed with the Illinois Department on or before the first day of October. In addition, an ordinance imposing, discontinuing, or effecting a change in the rate oftax under this Section shall be adopted and a certified copy ofthe ordinance filed with the Department on or before the first day orOctober. Afler proper receipt ofthe ce11ifications, the Department shall proceed to administer and enforce this Section as ofthe first day ofJanuary next following the adoption and filing.

(g) The Department ofRevenue shall, upon collecting any taxes and penalties as provided in this Section, pay the taxes and penalties O\'er to the Stale Treasurer as trustee for the county. The taxes and penalties shall be held in a trust fond outside the State Treasury. On orbefore the 25th day ofeach calendar month. the Department ofRevenue shall prepare and certify to the Comptrollerofthe State of11\inois the amountto bepaid to the county, which shall be the balance in the fund, less anyamount detennined by the Department to be necessaiy for the payment ofrefunds. Within 10 days after receipt by the Comptroller ofrhe certification ofthe amount to be paid to the county, the Comptroller shall cause an order to be dravm for payment for the amount in accordance with the directions contained in the certification. Amow1ts received from the tax imposedunder this Section shall be used only for the economic development activities ofthe county and communities located within the county.

(h) When certifying the amount ofa monthly disbursement to the countyunderthis Section, the Department shal! increase or decrease the amounts by an amount necessary to offset any miscalculation ofprevious disbursements. The offset amount shall be the amount erroneously disbursed within the previous 6 months from the time a miscalculation is discovered.

(i) This Section may be cited as the Rock Island County Cse and Occupation Tax La\v. CREDIT(S) 1998 Electronic Pocket Part Update P.A. 86-962, Art. 5, § 5-1008.5, added by P.A. 90-415, § 

### !O, eff. Aug. 15, 1997.

[Fl\'1]10 ILCS 511-l et seq. [FN2]35 JLCS 120/l, 1'..:0!Ja, 1'..:0ila-1, 1::0'lc, 1201Jd, l2U 1le, !201Jf. 120.'li, 120.i!j, J20 1lk, 1'..:0dm, 120:ln, 

## no 12,

l20-'2-5, 120:2-5.5, 120.2-10, 120,..2-15 to I2(J.!2-70, 120 2a, I20t2b, I20-'2c, 120. 13, 120 "4, 120,5, I20:5a, l2(V5b, l.20.'Sc,515-1008.5. Use and occupation taxes. 55 lLCS 515-1008.5

120 5d. 120 Sc. 120 Sf. 120 5g. 120 5i. 120 5j, 120·:'k, 120 51. 120 6, 120 6a, 120 (ib, 120 (le, 120·7. 120 8. 120 9. 120·10. 12(1 I

### 1. 120 I Ia. 

### J20· l2. and 120 l3. [Fl\3]35 lLCS 735 3-7. 

### [FJ\:4]35 1 LCS 

### l 15 2, 115 2a, 115 2b, 

### 115 · 3 to 115 3-55, 115 4, 115 5, 115 7, 115 8, 115 9, 115 I

### I. and J 

### 15 12. !F~5]35 ILCS 115'13, 115 15, 115 16, 115. 17, 115 !8, 115 19. and 115·20. [F:<6]35 !LCS 110 l ct seq. [FX7]35 ILCS 105 let seq. [F'.\8]35 JLCS 105 2, 105 3. 105 3-5, 105 3-10, 105 3----15, !05 3-55, 105 3-65, 105 3-70, 105 3-85. 105 3a. 105·4, 105 6,

105·7, 105 8, 105 9, 105 HJ, lfl5 l I. !05 12.105 l2a, 105 l2b, 105 13, !05 14, 105·]5. 105 19, 105·20. JIJ5·2J,and 105 22. [F:-.;9]35 lLCS 120·1 et seq. [Fl\lflj35 JLCS I 15 I et seq.



# ' ·., ' 

### .,,.. 

## . (5/5-1008.5. Use and occupation taxes, IL ST CH 55 § 5/5,1008.5

( West's Smith-Hurd Illinois Compiled StalutesAnnotated



### ( Chapter55. Counties 

### Act5. Counties Code (Refs & 

### Annas)

Alticle5.

### PowE'rs and Duties of

### CountyBoards Dh-ision 5-1. In General 55 ILCS 5/5-1008.5 5/5-1008.5. Use and ocrnpationtaxes Currentness § 5-1008.5. Use and occupation taxes.
(a) The Rock Island County Board may adopt a resolution that authorizes a referendum on the question ofwhetherthe county shall be authorized to impose aretailers' occupation tax, a service occupation tax, and a use tax at arate of

### Vi of 1 % on behalf ofthe economic development activities ofRock lsland County and communities located within the county. The county board shall certify the question to the proper election authorities who shall submit the question to the Yoters ofthe county al the next regularly scheduled election in accordance with the general election law. 1 The question shall be in substantiallythe following form:

Shall Rock Island Countybeauthorized to impose aretailers' occupationtax, a service occupationtax, and ause tax at the rate of 

### Y4 of 1 % for the sole purpose ofeconomic development activities, including creation and retention of job opportunities, suppmi ofaffordable housing opportunities. and enhancement ofquality oflife improvements?
Votes shall be recorded as "yes"' or "no··. Ifa majority ofall votes cast on the proposition are in favor ofthe proposition, the county is authorized to impose the tax.
(b) The county shall impose the retailers' occupationtax upon all persons engaged in the business ofselling tangible personal prope1ty at retail in the county, at the rate approved by referendum, on the gross receipts from the sales made in the course of those businesses within the county. This additional tax may notbe imposed on the sale offood for human consumption that is to be consumed offthe premises where it is sold (otherthan alcoholic beverages, soft drinks, and food that has beenprepared for immediate consumption) and prescription and non-prescription medicines, drngs, medical appliances and insulin, urine testing materials, syringes, and needlesused by diabetics. The tax imposed underthis Section and al! civil penaltiesthat may be assessed as an incident ofthe tax shallbe collected and enforcedbythe DepartmentofRevenue. The-Departmenthas full power to administer and enforce this Section; to collect all taxes and penalties so coilected in the manner provided in this Section; and to determine all rights to credit memoranda arising on account ofthe erroneous payment oflax or penaltyunder th.is Section. In the administration of, and compliance with,this Section, the Department and persons who are subject to this Section shall (i) ha,·e the same rights, remedies, privileges, immunities, powers and duties, (ii) be subject to the same conditions. restrictions, limitations, penalties. exclusions, exemptions, and definitions oftenns, and (iii) employ the same modes ofprocedure as are prescribed in Sections 1, 1 a, 1 a-1, 1 c, 1 d, 1e, If, Ii, lj, lk, lm, ln, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions otherthan the State rate oftax), 2-15 through 2-70, 2a. 2b, 2c, 3 (except as to the disposition oftaxes and penalties collected and provisions related to quarter monthly payments), 4, 5, 

### Sa. Sb, Sc, 5d, 5e, 

### 5[, Sg, Si, 5j, 5k, 

### 5/, 6, 

### Ga, 6b, 

### Ge, 7, 8, 9, 

### JO, 11, Ila, 12, and 13 ofthe Retailers' OccupationTax. Act2 and Section 3-7 ofthe Unifonn Penalty and InterestAct, 3 as fully as ifthose provisions were setforth in this subsection.5.15-1008.5. Use and occupation taxes, IL ST CH 55 § 5.15-1008.5

Persons subject to any tax imposed underthis sttbsection may reimburse themselves for their seller's tax liability by separately stating the tax as an additional charge. which charge may be stated in combination, in a si11gle amount, v ..ith State taxes that sellers are required to collect, in accordance with bracket schedules prescribed by the Depai1ment. \1./henever the Department detern1ines that a refi.md should be made under this subsection to a claimant instead ofissuing a credit memorandum, the Department shall notify the State Comptroller. who shall cause the warrant to be drawn forthe amount specified, and to the person named, in the notification from the Department. The refund shall be paid by the State Treasurer out ofthe tax fund referenced under paragraph (g) ofthis Section. lfa tax is imposed under this subsection (b). a tax shall also be imposed at the same rate under subsections (c) and (d) ofthis Section.
For the purpose ofdetermining whether a tax authorized under this Section is applicable. aretail sale, by aproducer ofcoal or another mineral mined in Illinois, is a sale atretail at the place where the coal or othermineral mined in Illinois is extracted from the em1h. This paragraph does not apply to coal or anothermineral when it is deliYered or shipped

### by the seller to the purchaser at a point outside Illinois so that the sale is exempt under the federal Constitution as a sale in interstate orforeign commerce. l\"othing in this Section shall be construed to authorize the county to impose a tax upon the pri,,ilege ofengagingin any business that under the Constitution ofthe United States may not be made the subject oftaxation by this State.
(c) Ifatax hasbeenimposedundersubsection(b), a ser\'iceoccupation tax shall alsobe imposed atthe samerateuponall persons engaged, in the county, in the business ofmaking sales ofservice. who. as an incident to making those sales ofservice, transfer tangible personal property within the county as an incident to a sale ofservice. This additional tax may not be imposed on the sale offood forhuman consumption that is to beconsumed offthe premises where it is sold (otherthanalcoholic beverages, soft drinks, and food lhat has been prepared for immediate consumption) andprescription and non-prescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes, and needles used by diabetics. The tax imposed under this subsection and all civil penalties thatmaybe assessed as an incident ofthe tax shallbe collected and enforcedby the Department ofReYcnue. The Departmenthas full powerto administer and enforcethis paragraph: to collect all taxes and penaltiesdue under this Section: to dispose oftaxes and penalties so collected in the manner provided in this Section: and to determine al! rights to credit memoranda arising on account ofthe erroneous payment oftax orpenaltyunder this Section. Jnthe administration of, and compliance with this paragraph. the Depm1ment and persons who are subject to this paragraph shall (i) have the same rights. remedies, privileges, immunities, powers, and duties, (ii) be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions, and definitions oftenns, and (iii) employ the same modes ofprocedure as are prescribed in Sections 2 (except that the reference to State in the definition ofsupplier maintaining a place ofbusiness in this State shall mean the county), 2a, 2b. 3 through 3-55 (in respect to all provisions other than the State rate oftax), 4 (except that the reference to the State shall be to the county), 5, 7, 8 (except that thejurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the county), 9 (except as to the disposition oftaxes and penalties collected, and except that the returned merchandise credit for this tax may not be taken against any State tax), ll, 12 4 (except the reference to Section 2b ofthe Retailers' Occupation Tax Act), 13 (except that any reference to the State shall mean the county), 15, 16, 17, 18, !9 and 20 ofthe Service Occupation Tax Act5 and Section 3-7 ofthe Unifom1 Penalty and Interest Act, us fully as ifthose provisions were set forth in this subsection.
Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their serviceman's tax liability by separately stating the tax as an additional charge, which charge may be stated in combination, in
a single amount, with State tax that servicemen are authorized to collect under the Service Use Tax Act, 6 in accordance with bracket schedulesprescribed by the Department.

I;~

... 

### (

### ( 5/5·1008.5. Use and occupation taxes, IL ST CH 55 § 5/5·"1008.5

Whenever the Department detennines that a refund should be made under this subsection to a claimant instead ofissuing a credit memorandum. the Department shall notify the State Comptroller, who shall cause the warrantto be drav.-n for the amount specified. and to the person named, in the notification from the Department. The refund shall be paid by the State Treasurer out ofthe tax fund referenced under paragraph (g) ofthis Section. Nothing in this paragraph shall be constrned to authorize the county to impose a tax upon the privilege ofengaging in any business that under the Constitution oft he l,""nited States may not be made the subject oftaxation bythe State.
(d) If a taX has been imposed under subsection (b), a use tax shall also be imposed at the same rate upon the privilege of using. in the county, any item oftangible personal property that is purchased outside the county al retail from a retailer, and that is titled or registered at a location within the county with an agency ofthis State's government. This additional tax may not be imposed on the sale of-food for human consumption that is to be consumed offthe premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes, and needles used by diabetics. "Selling price" is defined as in the Use Tax Act. 7 The tax shall be collected from persons whose lllinois address for titling or registration purposes is given as being in the county. The tax shall be collectedby the Department ofRevenue for the county. The tax must be paid to the State, or an exemption detennination must be obtained from the Department ofRevenue, before the title or certificate ofregistration for the property may be issued. The tax or proofofexemption may be transmitted to the Department bywayofthe Stale agencywith which, orthe Stateofficerwith whom, the tangible personal property must be titled or registered ifthe Department and the State agency or State officer detennine that this procedure will expedite the processing ofapplications for title or registration. The Departmenthas full powerto administerandenforcethis paragraph: to collectall taxes, penalties, and interestdue underthis Section; to dispose oftaxes, penalties. and interest so collected i11 the mannerprovided in this Section; and to determine all rights tocreditmemoranda orrefunds arising on account ofthe erroneouspayment oftax, penalty. orinterestunder this Section. In the administration of, and compliance with, this sttbsection. the Department and persons who are subject to this paragraph shall (i) have the same rights, remedies, privileges, immunities, pO\vers, and duties, (ii) be subject to the same conditions, restrictions. limitations, penalties, exclusions, exemptions. and definitions ofterms, and (iii) employ the same modes ofprocedure as are prescribed in Sections 2 (except the definition of·'retailer maintaining a place ofbusiness in this State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85. 3a, 4, 6. 7, 8 (except that thejmisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the county), 9 (except provisions relating to quarter monthly payments), 10, 11, 12, 12a, 12b, 13. 14, 15, 19, 20, 21. and 22 ofthe Use Tax Act g and Section 3-7 ofthe Uniform Penalty and Interest Act. that are not inconsistentwith this paragraph. as fully as ifthose provisions were set forth in this subsection. Whenever the Department detennines that a refond should be made under this subsection to a claimant instead ofissuing a creditmemorandum, the Department shall notify the State Comptroller, who shall cause the orderto be drawn for the amount specified, and to the person named, in the notification from the Department. The refund shall be paid by the State Treasurer out ofthe tax fund referenced under paragraph (g) ofthis Section.
(e) Acertificate ofregistration issued bythe State DepartmentofRevenueto aretailerunderthe Retailers' OccupationTax Act 9
orunderthe Service OccupationTax tO Actshall permittheregistrant to engage in abusiness that is taxedunderthe tax imposed under paragraphs (b), ( c), or (d) ofthis Section and no additional registration shall be required. A certificate issued under the Use Tax Actorthe Service Use Tax Act shall beapplicable with regard to any tax imposed underparagraph (c) ofthis Section.
(f) The results ofany election authorizing a proposition to impose a tax under this Section or etfocting a change in the rate oftax shall be certified by the proper election authorities and filed with the Illinois Department on or before the first day of



### r-!;.., t5i5·1008.5. Use and occupation taxes, IL ST CH 55 § 5/5-1003.5

October. Jn addition, an ordinance imposing, discontinuing, or effecting a change in the rate oftax under this Section shall be adopted and a certified copy ofthe ordinance filed with the Department on or before the first day ofOctober. After proper ( receipt ofthc ce1iifications, the Department shall proceed to administer and enforce this Section as ofthe first day ofJanumy next following the adoption and filing.
(g) The Department ofRevenue shall, upon collecting any taxes and penalties as provided in this Section, pay the taxes and penalties over to the State Treasurer as trustee for the county. The taxes and penalties shall be held in a trust fund outside the Stale Treasury. On or before the 25th day ofeach calendarmonth, the Department ofRevenue shall prepare and certify lo the Comptrollerofthe State oflllinois the amount to be paid to the county, which shall be the balancein the fund, less any amount detem1ined by the Department to be necessary for the payment ofrefunds. \Vithin 

### 10 days after receipt by the Comptroller ofthe certification ofthe amount to be paid to the county, the Comptro11er shall cause an order to be drawn for payment for the amount 

### in accordance with the directions contained in the certification. Amounts received from the tax imposed underthis Section shall be used only for the economic development activities ofthe county and communities located within the county.
{h) \:Vhen certifying the amount ofa monthly disbursement to the county under this Section, the Department shall increase or decrease the amounts by an amount necessary to offset any miscalculation ofprevious disbursements. The offset amount shall bethe amount erroneously disbursed within the previous 

### 6months from the time a miscalculation is discovered.
(i) This Section maybe cited as the Rock Island County Use and Occupation Tax Law.

Credits P.A. S6-962. Art. 5.**~** 5-1008.5, added by P.A. 90-415, § 10. eff. Aug. 15, 1997.

Footnotes IOJLCS5 l-l et seq. 2 35!LCS 120 l.120 la. 121J la·l.12ll lc. 12() JJ.120'k l21J'lf.120'Ji, 120 lj.120 lk.120'1rn.12U ln, 1202.1202·5, 1202-5.5, 120 2-JO, 120 2-15 to 120':>70. 120-::!a, 120 2h. 120 ·2c. L::!O 3. 120 4. l2U 5. 120 5a. 120 5h. 120 5c. 120 5d. 120 5c. 120 5( ]2{L5g. 120 5i, 120 5j, 120 5k. 120 5/. 120 6. 120 6~. 120 6b. 120 he, 120 7, 120 

### S. 120 9. J2{)'JO. 110 11. 120'1 la. 120 12. and 120 l}. 3 35 ILCS 735·3-7. 4 351LCS 115 2, 115'.'.u.115 2b.115'3to 115'3-55, 1154.1155, 115·7.115 8, 1159, !15 ll,an<l \15 !2. 5 35 ILCS 115 13. 115 15. l 15 l6, l 15 J7, l 15 lli. IJ5, 19. and l 15 20. 6 35 ILCS 110 I ct seq. 7 35JLCSJ05ll't>~q. 8 35 !LCS 105 2, 105'3, 105 3·5. 105'3-JU, 105'3·45, 105'3-55, 105.3·65, !05·3-70, 105.'3-85, 105 3a, 1ll5'4. 105'6. 105'7. !05 8. 105'9.105 10, 105 11.105 !2.105 12a.105 12b, 10513, 105:14, 1(15 15, 105,19.10520, H)5 21.and 105'22. 

### 9 35 ll.CS 120 I ct seq. 10 35 ILCS 115'1 ct ~cq. 55 I.L.C.S. 5/5-1008.5, IL ST CH 55 

### § 5/5-1008.5 Currentthrough P.A. 99-487 ofthe 2015 Reg. Sess. 

## (

### ( 750/25. Flood prevention retailers' and service occupation taxes, 70 ILCS 750/25



### 70 ILCS 750/25 West's Smith-HurdIllinois Compiled StatutesAnnotated Currentness

Chapter70. Special Districts

Flood Prewntion Act750. Flood Prevention DistrictAct



### 750/25. Floodpreventionretailers' and serviceoccupationtaxes

§ 25. Flood prevention retailers' and serYice occupation taxes. (a) Ifthc Board ofCommissioners ofa flood prevention district detennines that an emergency situation exists regarding levee repair or flood prevention, and upon an ordinance confim1ing the determination adopted by the affirmative \"Ole ofa majority ofthe members ofthe county board ofthe county in which the district is situated, the county may impose a flood prevention retailers' occupation tax upon all persons engaged in the business of selling tangible personal property at retail within the territory ofthe district to pro\'ide revenue to pay the costs ofproviding emergency levee repair and flood prevention and to secure the payment ofbonds, notes, and other e,·idences ofindebtedness issued under this Act for a period not to exceed 25 years or as required to repay the bonds, notes, and otherevidences ofindebtedness issued underthis Act. The tax rate shall be 0.25'(.\, ofthe gross receipts from all taxable sales made in the course ofthat business. Thetax imposedunderthis Section and all civil penaltiesthat may be assessed as an incident thereofshall be coHeeted and enforced by the State Department ofRevenue. The Department shaH have full power to administer and enforce this Section; to collect all taxes and penalties so collected in the manner hereinafterprovided: and to detem1ine all rights lo credit memoranda arising on account ofthe erroneous payment oftax or penalty hereunder. In the administration ofand compliance with this subsection, the Department and persons who are subject to this subsection (i) have the same rights, remedies, privileges. immunities, powers, and duties, (ii) are subject to the same conditions, restrictions, limitations, penalties, and definitions oftenns, and (iii) shall employthe samemodes ofprocedure as are set forth in Sections I through lo, 2 through 2-70 (in respect to all provisions contained in those Sections otherthan the State rate oftax), 2a through 2h, 3 (except as to the disposition oftaxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 51, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, Ila, 12, and 13 ofthe Retailers' Occupation Tax Act and all provisions ofthe Uniforn1 Penalty and Interest Act as ifthose provisions ,wre set forth in this subsection. Persons subject to any tax imposed under this Section may reimburse themselves for their seller's tax liability hereunder by separately stating the tax as an additional charge, which charge may be stated in combination in a single amount with State taxes that sellers arc required to collectunderthe Use Tax Act, under any bracket schedules the Department may prescribe. !fatax is imposed under this subsection (a), a tax shall also be imposed under subsection (b) ofthis Section. (b) lfa tax has been imposed under subsection (a), a flood prevention service occupation tax shall also be imposed upon all persons engagedwithin the territory ofthe district in the business ofmaking sales ofservice, who, as an incident to making the sales ofservice, transfer tangible personalproperty. eitherin the fom1 oftangible personal property or in the form ofreal estate as an incident to a sale ofservice to provide revenue to pay the costs ofproviding emergency levee repair and flood preYcntion and to securethe payment ofbonds, notes, and otherevidences ofindebtedness issued underthis Act for aperiod notto exceed 25 years orasrequired to repaythe bonds, notes, and otherevidences ofindebtedness. The tax rate shallbe 0.25% ofthe selling price ofall tangible personal propertytransferred. The tax imposed under this subsection and all civil penalties that maybe assessed as an incident thereofshall be collected and enforced bythe State Department ofRevenue. The Department shall have full powerto administer and enforce this subsection;750125. Flood prevention retailers' and service occupation taxes. 70 ILCS 750/25



### to collect all taxes and penalties due hereunder; to dispose oftaxes and penalties collected in the manner hereinafterprovided; and to determine all rights to credit memoranda arising on account ofthe erroneous payment oftax or penaltyhereunder. In the administrntion ofand compliance with this subsection, the Department and persons who are subject to this subsection shall (i} 

### have the same rights, remedies, privileges, immunities, powers. and duties, (ii) be subject to the same conditions, restrictions. limitations, penalties, and definitions ofterms. and (iii) employ the same modes ofprocedure as are set forth in Sections 2 (except 1hat !hereference to State in the definition ofsupplier maintaining aplace ofbusiness in this Statemeans the district). 2a through 2d, 3 through 3-50 (in respect to all provisions contained in those Sections other than the State rate oftax), 4 (except that the reference to the State shall be to the district), 5, 7, 8 (except that thejurisdiction to which the tax is a debt to the extent indicated in that Section 8 is the district). 9 (except as to the disposition oftaxes and penalties collected). 10, 11, 12 (except the reference therein to Section 2b ofthe Retailers' Occupation Tax Act), 13 (except that any reference to the State means the district). Section 15. 16, 17. 18, 19, and 20 ofthe Service Occupation Tax Act and all provisions of the Cnifonn Penalty and Interest Act, as fully as ifthose provisions were set forth herein. Persons subject to any tax imposed under the authority granted in this subsection may reimburse themseh'es for their sef\"iceman's tax liability hereunder by separately stating the tax as an additional charge, that charge may be stated in combination in a single amount with State tax that servicemen are authorized to collect under the Sen·ice Use Tax Act. under any bracket schedules the Departmentmay presc1ibe. (c) The taxes imposed in subsections (a) and (b) may not be imposed on personalpropertytitled or wgistered with an agency of the State; food for human consumption that is to be consumed offthe premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption): prescription and non-prescription medicines, drugs, and medical appliances: modifications to amotor vehicle forthe purpose ofrendering it usable bya disabled person; or insulin. urine testing materials. and syringes and needles used by diabetics. (d) Nothing in this Section shall be constrned to authorize the district to impose a tax upon the privilege ofengaging in any business that under the Constitution ofthe L'nited States may not be made the subject oftaxation by the State. (e) The certificate ofregistration that is issued by the Department to a retailer under the Retailers' Occupation Tax Act or a serviceman under the Service Occupation Tax Act pem1its the retailer or serviceman to engage in a business that is taxable without registering separately with the Department under an ordinance orresolution under this Section. (f) 

### The Department shall immediately pay oYer to the State Treasurer. ex officio, as trustee, all taxes and penalties collected under this Section to be deposited into the Flood Prevention Occupation Tax Fund, which shall be an unappropriated tmst fund held outside the State treasury. On orbefore the 25th day ofeach calendarmonth, the Department shall prepare and certify to the Comptrollerthe disbursement ofstated sums ofmoney to the counties from which retailers or sen·icemen have paid taxes or penalties to the Department during the second preceding calendarmonth. The amount to be paidto each county is equal to the amount (not including credit memoranda) collected from the county under this Section during the second preceding calendar month by the Department, (i) 

### less 2% ofthat amount, which shall be deposited into the Tax Compliance and Administration Fund and shall be used by the Department in administering and enforcing the provisions ofthis Section on behalfofthe county, (ii) plus an amount that the Department determines is necessary to offset any amounts that were erroneously paid to a different taxing body; (iii) less an amount equal to the amount ofrefunds made during the second preceding calendar month by the Department on behalf ofthe county; and (iv) less any amount that the Department determines is necessary to offset any amounts that were payable to a different taxing body but were erroneously paid to the county. When certifying the amount ofa monthly disbursement to a county under this Section, the Department shall increase or decrease the amounts by an amount necessary to offset any miscalculation ofprevious disbursements within the previous 6months from the time a miscalculation is discovered. 

### (



## (

## (

( 750125. Flood prevention retailer$' and service occupation ta1-:es. 70 ILCS 750/25

Within l

### Odays afterreceiptby the Comptrollerfrom the Departmentofthe disbursement certification to the counties pro\'ided for in this Section, the Comptrollershall cause the orders to be drawn for the respecti\'e amounts in accordance with directions contained in the certification. If the Depm1ment determines that a refund should be made under this Section to a claimant instead of issuing a credit memorandum. then the Department shall notifythe Comptroller. who shall cause the order to be drawn for the amount specified and to the person named in the notification from the Department. The refund shall be paid by the Treasurer out ofthe Flood Pre\'ention Occupation Tax Fund. (g) Ifa co1mty imposes a tax underthis Section, then the countyboard shall,byordinance, discontinue the tax upon the payment ofall indebtedness ofthe flood prevention district. The tax shall not be discontinued until all indebtedness ofthe District has been paid. (h) Any ordinance imposing the tax under this Section, or any ordinance that discontinues the tax, must be certified by the county clerk and filed with the Il!inois Department ofReYenne either (i) on or before the first day ofApril. whereupon the Department shall proceed lo administer and enforce the tax or change in the rate as ofthe first day ofJuly next following the filing; or (ii) on or before the first day ofOctober. whereupon the Department shall proceed to administer and enforce the tax or change in the rate as ofthe first day ofJanuary next foIIO\ving the filing. (j) County Flood Pre,·ention Occupation Tax Fund. All proceeds receivedbya county from a tax distribution under this Section must be maintained in a special fund knovin as the [name ofcounty] floodprevention occupation tax fund. The county shall. at the direction ofthe flood prevention district, use moneys in the fund to pay the costs ofprm·iding emergency le\·ee repair and flood prevention and to pay bonds, notes, and other evidences ofindebtedness issued under this Act. [FN

### J1 (k) This Section may be cited as the Flood Prevention Occupation Tax Law. CREDIT(S) P ...-\. 95-719.**~** 

### 25. cff. ~fay 

### 2 !, 2008. Amended by P./\.. 95-

### 723. § 5. eff June 23. 2008.

['FN!] No subsec. (i) in enrolled bill. HISTORICAL AND STATUTORY NOTES P.A. 95-723 incorporated the section as enacted by P.A. 95-7 I9.

Current through P.A. 96-7, ofthe 2009 Reg. Sess.

### (

### (



### ( 750/25. Flood prevention retailers' and service occupation taxes. !L ST CH 70 § 750125



### West's Smith-Hurd I11inois Compiled StatutesAnnotated

Chapter70. Special Districts

Flood Prewntion

Act 750. Flood Prevention DistrictAct 70 ILCS 750/25 750/25.Flood 

### pren:,ntion retailers' and seniceoccupation 

### taxes Effective: July31, 2015 Currentness
§

### 25. Flood prevention retailers' and service occupation taxes.
{a) lfthe Board ofCommissioners ofa flood preYention district detennines that an emergency situation exists regarding levee repair or flood prevention. and upon an ordinance confim1ing the determination adopted by the affinnative vote ofa majority ofthe members ofthe county board ofthe county in which the district is situated. the county may impose a flood pre\·ention retailers' occupation tax upon all persons engaged in the business of selling tangible personal property at retail within the tenitory ofthe district to provide revenue to pay the costs ofpro\'iding emergency levee repair and flood prevention and to secure the payment ofbonds, notes, and other evidences ofindebtedness issued under this Act for a period not to exceed 25 years or as required to repay the bonds, notes, and otherevidences ofindebtedness issued underthis Act. The tax rate shall be 0.25% ofthe gross receipts from all taxable sales made in the course ofthat business. The tax imposed under this Section and all ci\'il penalties that may be assessed as an incident lhereofshal! be collected and enforced by the State Department ofReYenue. The Department shall have foll power to administer and enforce this Section; to collect all taxes and penalties so collected in the mannerhereinafter provided; and to determine all rights to credit memoranda arising on account ofthe erroneous payment oftax orpenalty hereunder.
In the administration ofand compliance with this subsection, the Department and persons who are subjectto this subsection (i) have the same rights, remedies, privileges, immunities, powers, and duties, (ii) are subject to the same conditions, restrictions, limitations, penalties, anddefinitions oftenns, and {iii) shall employ the samemodes ofprocedure as are set forth in Sections l through lo, 2through 2-70 (in respect to all provisions containedin tl1ose Sections otherthanthe State rate oftax), 2a through 2h, 3 (except as to the disposition oftaxes and penalties collected), 4, 5, 5a, 5b. 5c, 5d, 5e, 5f, 5g, 5h, 5i, 51, 6, 6a, 6b, 6c, 6d, 7, 8, 9. 10. ! ], Ila, 12, and 13 ofthe Retailers' Occupation Tax Act and all provisions ofthe Uniform Penalty and Interest Act as ifthose provisions were setforth in this subsection.
Persons subject to any tax imposed under this Section may reimburse themselves for their seller's tax liability hereunder by separately stating the tax as an additional charge. which charge may be stated in combination in a single amount with State taxes that sdlers arc requircd to collect under the Use Tax Act, under any bracket schedules the Department mayprescribe. !fatax is imposed under this subsection (a), a tax shall also be imposed under subsection (b) ofthis Sectio11.
(b) 

### Ifa tax has been imposed under subsection (a), a flood prevention service occupation tax shall also be imposed upon all persons engagedwithin the territory oflhe district in the business ofmaking sales ofservice, who, as an incident to making the sales ofservice, transfer tangiblepersonalproperty, eitherin the form oftangible personalproperty orin the form ofreal estate as an incidentto a sale ofservice to provide revenue to pay the costs ofproviding emergency levee repair and flood prevention and to secure the payment ofbonds, notes, and other evidences ofindebtedness issued under this Act for aperiod not to exceed750/25. Flood prevention retailers' and service occupation taxes. IL ST CH 70 § 750125


### 25 years or asrequired lo repay the bonds, notes, and othere\·idences ofindebtedness. Thetax rate shall be 0.25% ofthe selling price ofall tangible personal property transferred. The tax imposed under this subsection and all ciYil penalties that may be assessed as an incident thereofshall be collected and enforced by the State Department ofRevenue. The Department shall haYe full powerto administer and enforce this subsection; to collect all taxes and penalties due hereunder; to dispose oftaxes and penalties collected in the mannerhereinafterproYided: and to determine all rights to credit memoranda arising on account ofthe erroneous payment oftax orpenalty hereunder.
In the administration ofand compliance with this subsection, the Department and persons who are subject to this subsection shall (i) ha\·e the same rights, remedies, priYileges, immunities, powers, and duties. (ii) be subject to the same conditions, restrictions. limitations, penalties, and definitions oftem1s. and (iii) employ the same modes ofprocedure as are set forth in Sections 2 { exceptthat the reference to State in the definition ofsupplier maintaining a place ofbusiness in this State means the disllict), 2a through 2d. 3 through 3-50 (in respect to all provisions contained in those Sections otherthan the State rate oftax). 4 (except that the reference to the State shall be to the district), 5, 7, 8 (except that thejurisdiction to which the tax is a debt to the extent indicated in that Section 8 is the district), 9 (except as to the disposition oftaxes and penalties collected), 

### JO. l l, 12 (except the reference therein to Section lb ofthe Retailers' Occupation Tax Act}, 13 {except that any reference to the State means the district). Section 15, 16, 17, 18, 19, and 20 ofthe Service Occupation Tax Act and all provisions ofthe L'niform Penalty and Interest Act. as folly as ifthose pro\·isions were SL't forth herein.
Persons subject to any 1ax imposed under the authority granted in this subsection may reimburse themselves for their serviceman's tax liability hereunder by separately stating the tax as an additional charge, that charge may be stated in combination in a single amount with State tax that servicemen are authorized to collectunderthe Service Use Tax Act. under any bracket schedules the Department may prescribe.
(c) The taxes imposed in subsections (a) and (b) may notbe imposed on personal property tilled orregistered with an agency of the State: food for human consumption that is to be consumed offthe premises where itis sold (otherthan alcoholicbeverages, soft drinks, and food that has been prepared for immediate consumption); prescription and non-prescription medicines, drugs, and medical appliances; modifications to a motor vehicle for the purpose ofrendering it usable by a person with a disability: or insulin, urine testing materials, and syringes and needles used bydiabetics.
(d) Nothing in this Section shal! be construed to authorize the district to impose a tax upon the privilege ofengaging in any business that under the Constitution ofthe L'nited States may not be made the subject oftaxation by the State.
(e) The certificate ofregistration that is issued by the Department to a retailer under the Retailers' Occupation Tax Act or a serviceman under the Service Occupation Tax Act pe1111its the retailer or serviceman lo engage in a business that is taxable without registering separately with the Departmentunder an ordinance orresolution underthis Section.
(f) The Department shall immediately pay over to the State Treasurer, ex officio, as tmstee, all taxes and penalties colJected under this Section to bedeposited into the flood Prevention OccupationTax Fund, which shall be an unappropriated trust fond held outside the State treasury. On orbeforethe 25thday ofeach calendarmonth, the Department shall prepare and certifyto the Comptrollerthe disbursement ofstated sums ofmoney to the counties from which retailers or servicemen have paid taxes or penalties to the Department during the second preceding calendarmonth. The amount to be paid to each county is equal to the amount (not including credit memoranda) collected from the county under this Section during the second preceding calendar month by the Department, (i) less 2% ofthat amount, which shaU be deposited into lhe Tax Compliance and Administration Fund and shall be used by l



## .' '

# ..( 750125. Flood prevention retailers' and service occupation taxes, IL ST CH 70 § 750125

the Depmirncnt in administering and enforcing the provisions ofthis Section on behalfofthe county, (ii) plus an amountthat the Department detem1ines is necessary to offset any amounts that were erroneouslypaid to a different taxing body: (iii) less an amount equal to the amount ofref-unds made during the second preceding calendar month by the Department on behalf ofthe county: and (iv) less any amount that the Department <letem1ines is necessary to offset any amounts that were payable to a different taxing body but were e1Toneously paid to the county. When certifying the amount ofa monthly disbursement to a county under this Section. the Department shall increase or decrease the amounts by an amount necessary to offset any miscalculation ofpre\'ious disbursements within the previous 6 months from the time a miscalculation 

### is discovered. \\'ithin 10 days afterreceipt by the Comptroller from lhe Department ofthe disbursement certification to the counties provided for in this Section, the Comptroller shall causethe orders to be drawn for the respective amounts in accordance with directions contained in the ce11ification. [f the Depaiiment detennines that a refond should be made under this Section to a claimant instead of issuing a credit memorandum, then the Department shall notifythe Comptroller, who shall cause the orderto bedrawn for the amount specified and to the person named in the notification from lhe Department. The refund shall be paid by the Treasurer out ofthe Flood Prevention Occupation Tax Fund.
(g) Ifa countyimposes atax underthis Section, then the countyboard shall, by ordinance.discontinue the tax uponthepayment ofall indebtedness ofthe flood prevention district. The tax shall not be discontinued until all indebtedness ofthe District has been paid.
(h) Any ordinance imposing the tax under this Section, or any ordinance that discontinues the tax, must be certified by the county clerk and filed with the Jllinois Department ofRevenue either (i) on or before the first day ofApril, whereupon the 

# f Department shall proceed to administer and enforce the tax orchange in the rate as ofthe first day ofJuly next following the filing; or(ii) on orbefore the first day ofOctober, whereupon the Department shall proceed to administer and enforce the lax or change 

### in the rate as ofthe first day ofJanuary next following the filing.
(j) 1 County Flood Prevention Occupation Tax Fund. All proceeds recei\'ed by a county from a tax distribution under this Section must be maintained in a special fund kno\vll as the [ name ofcounty] Oood prevention occupationtax fund. Thecounty shall, at the direction ofthe flood prevention dist1ict, use moneys in the fund to pay the costs ofproviding emergency levee repair and flood pre\'ention and to paybonds, notes, and other evidences ofindebtedness issued under this Act.
(k) This Section maybe cited as the Flood Prevention Occupation Tax Law.

Credits P.A. 95-719.**~** 25, cff. May 21. 200):;. Amended by 

### PA 95-723, § 5. cff. June 23. 2008; P.A. 96-939, § 80, eff. June 24, 20!0; P.A. 97-188.**~** 10. eff. July 22.2011: P.A. 99-143,**~** 375. eff. July 27. 2015; P.A. 99-217.

# * 30, cff July 3 l. 2015.

Footnotes No subsec. (i) in enrolled bill. 70 I.L.C.S. 750/25, IL ST CH 70 § 750/25 Current through P.A. 99-487 ofthe 2015 Reg. Sess.750/25. Flood prevention retailers' and service occupation taxes, fl ST CH 70 § 750/25



### (

### I



### (



## I 515-1006.7. School facility occupation taxes. 55 lLCS 5/5-1006.7



### 55 ILCS 5/5-1006.7 West's Smith-HurdIllinois Compiled StatutesAnnotated 

### Currentness

Chapter55. Counties Act 5. Counties Code (Refs & 

### Annos)

Article 5. 

### Powers and Duties of

### CountyBoards

Dhision 5-1. In General 

### 5/5-1006.7. Schoolfacility occupationtaxes

§ 5- !006.7. School facility occupation taxes. (a) The county board ofany county may impose a tax upon all persons engaged in the business ofselling tangible personal property, otherthan personal property titled or registered with an agency ofthis State's government, at retail inthe county on the gross receipts from the sales made in the course ofbusiness to provide re\'Cnue to be used exclusively for school facility purposes if a proposition for the tax has been submitted to the electors ofthat county and approved by a majority ofthose Yoting on the question as provided in subsection (c). The tax underthis Section may be imposed only in one-quarterpercent increments and maynot exceed 

### 1 %. This additional tax may not be imposed on the sale offood for human consumption that is to be consumed offthe premises where it is sold (other than alcoholic be\'erages, soft drinks, and food that has been prepared for immediate consumption) and prescription and non-prescription medicines, drugs, medical appliances and insulin. urinetesting materials, syringes andneedles used bydiabetics. The Department ofReYenue has full powerto administerandenforcethis subsection, to collect all taxes and penaltiesdue under this subsection, to dispose oftaxes and penalties so collected in the mannerprovided in this subsection, and to detcnninc all rights to creditmemoranda arisingon account ofthe erroneouspaymentofatax orpenaltyunderthis subsection. TheDepa1tment shall deposit all taxes andpenalties collectedunder this subsection into a special fund created forthatpurpose. In the administration ofand compliancewiththis subsection, the Departmentand persons who are subject to this subsection {i) have the same rights, remedies, privileges, immunities, powers, and duties, (ii) are subjectto the same conditions, restrictions, limitations. penalties, and definitions ofterms, and (iii) shall employthe samemodes ofprocedure as are set forth in Sections I through lo, 2 through 2-70 (in respect lo all provisions contained in those Sections otherthan the State rate oftax), la through 2h, 3 (except as to the disposition oftaxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f. 5g, 5h. 5i, 5j, 5k, 

### 51, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and I 3 ofthe Retailers' Occupation Tax Act and all provisions ofthe Unifonn Penalty and Interest Act as ifthose provisions were set forth in this subsection. The certificate ofregistration that is issued by the Department to a retailer under the Retailers' Occupation Tax Act pem1its the retailer to engage in a business that is taxable without registering separately with the Department under an ordinance or resolution llnder this subsection. Persons subject to any tax imposedunderthe aulhorily granted inthis subsectionmay reimburse themselves for their seller's tax liabilitybyseparately statingthattax as anadditional charge, which maybe statedin combination, in a single amount, with State tax that sellers are required to collect under the Use Tax Act, pursuant

### to any bracketed schedules set forth bythe Department (b) lfatax hasbeen imposed under subsection (a), then a ser\'ice occupationtax must also be imposed at the same rate upon all persons engaged, in the county, in thebusiness ofmaking sales ofservice, who, as an incident to makingthose sales ofservice, transfer tangible personal property within the county as an incident to a sale ofservice.5i5-1006.7. Schoo! facility occupation taxes, 55 JLCS 5/5-1006.7

This tax may not be imposed on sales of food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages. soft drinks. and food prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances and insulin. urine testing materials. syringes, and needles used by diabetics. The tax imposed under this subsection and all ch'il penalties that may be assessed as an incident thereofshall be collected and enforced by the Department and deposited into a special fund created for that purpose. The Department has full power to administer and enforce this subsection, to collect all taxes and penalties due under this subsection. to dispose oftaxes and penalties so collected in the manner provided in this subsection, and to detem1ine all rights to credit memoranda arising on account ofthe enoneous payment ofa tax orpenaltyunderthis subsection. In the administration ofand compliance with this subsection, the Department and personswho are subjectto this subsection shall (i) have the samerights, remedies, pri,·i!eges. immunities, powers and duties, (ii) be subject to the same conditions. restrictions, limitations, penalties and definition ofte1ms, and (iii) employthe same modes ofprocedure as are set forth in Sections 2 (except that that reference to State in the definition of supplier maintaining a place of business in this State means the county), 2a through :?:d, 3 through 3-50 (in respect to all provisions contained in those Sections other than the State rate oftax), 4 (except that the reference to the State shall be to the county), 5, 7, 8 (except that thejurisdiction to which the tax is a debt to the extent indicated in that Section 8 is the county). 9 {except as to the disposition oftaxes and penalties collected), 10, 11, 12 (except the reference therein to Section 2b ofthe Retailers' Occupation Tax Act), 13 (except that any reference to the State means the county), Section 15, 16, 17. 18. 19. and 20 ofthe Service Occupation Tax Act and all provisions ofthe Uniform Penalty and Interest Act, as fully as ifthose provisions were set forth herein. Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their serviceman's tax liability by separately stating the tax as an additional charge, which may be stated in combination, in a single amount. with State tax that sen-icemen are authorized to collect under the Sen·ice Use Tax Act. pursuant to any bracketed schedules set forth by the Department. (c) The tax underthis Sectionmaynot be imposed until. byordinance orresolution ofthe countyboard, the question ofimposing the tax has been submittedto the electors ofthe county at aregular election and approved bya majority ofthe electors voting on the question, Upon a resolution bythe countyboard or a resolution by school district boards that represent at least 51 % ofthe student enrollment within the county. the countyboardmust certify the question to the properelection authority in accordance with the Election Code. The election authority must submit the question in substantially the following form:

Shall (name ofcounty) be authorized to impose a retailers' occupation tax and a service occupation ta.x (commonly referred to as a "sales tax'") at arate of(inseri rate) to be used exclusively for school facility purposes? The election authority must record the votes as "Yes" or "No". Ifa majority ofthe electors voting on the question vote in the affinnative. then the county may. thereafter, impose the tax. For the purposes ofthis subsection { c), "enrollment" means the head count ofthe students residing in the county on the last school day of September ofeach year, which must be reported on the Illinois State Board ofEducation Public School Fall Enro[hm:nt/!Iousing Report. (d) The Department shall immediately pay over to the State Treasurer, ex. officio, as trustee, all tax.es and penalties collected under this Section to be deposited into the Schoo! Facility Occupation Tax Fund, which shall be an unappropriated trust fund held outside the State treasury. On orbefore the 25thday ofeachcalendarmonth, the Department shall prepare and certify lo the Comptrollerthe disbursement ofstated sums ofmoney to the regional superintendents ofschools in counties from which retailers or servicemen have paid taxes or penalties to the Department during the second preceding calendar month. The amount to be paid to each regional 

### (5/5-1006.7. School facility occupation taxes, 55 ILCS 5/5-1006.7 superintendent ofschools and disbursed to him or her in accordance with 3-14.31 ofthe School Code, is equal to the amount (not including credit memoranda) collected from the COlmty underthis Section during the second preceding calendar month by the Department, (i) less 

### 2'Yn ofthat amount, which shall be deposited into the Tax Compliance and Administration Fund and shall be used by the Department, subject to appropriation, to coverthe costs ofthe Department in administering and enforcing the proYisions ofthis Section, on behalfofthe county, (ii) plus an amount that the Departmentdetermines is necessary to offset any amonnts that were erroneously paid to a different taxing body; 

### (iii) less an amount equal to the amount ofrefimds made during the second preceding calendar month by the Department on behalf ofthe county; and {iv) less any amount that the Department detem1ines is necessary to offset any amounts that were payable to a different taxing body but were erroneously paid to the cotmty. When certif)'ing the amount ofa monthly disbursement to a regional superintendent ofschools under this Section, the Department shall increase ordecrease the amountsbyan amount necessary to offset any miscalculation ofprevious disbursements withinthe pre,·ious 6 months from the time a miscalculation is disco\·ered. Within 

### IO days after receipt by the Comptroller from the Department of the disbursement certification to the regional superintendents ofthe schools provided forin this Section, the Comptroller shall cause the ordersto be drawn forthe respectiYe amounts in accordance with directions contained in the certification. If the Depmtment determines that a refimd should be made under this Section to a claimant instead of issuing a credit memorandum, then the Department shall notify the Comptroller,who shall cause the orderto be drawn for the amount specified and to the person named in the notification from the Department. The refund shall be paid by the Treasurer out ofthe School Facility Occupation Tax Fund. (e) For the purposes ofdetermining the local governmental unit whose tax is applicable, a retail sale by a producer ofcoal or another mineral mined in Illinois is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from the earth. This subsection does not apply to coal or another mineral when it is delivered or shipped by the seller to the purchaser at a point outside Illinois so that the sale is exempt under the United States Constitution as a sale in interstate or ( foreign commerce. (D Nothing in this Sectionmay be construed to authorize a countyboard to impose a tax upon the privilege ofengaging in any business that underthe Constitution ofthe United States may not be made the subject oftaxationby this State. (g) lfa county board imposes a tax under this Section, then the board may, by ordinance, discontinue or reduce the rate ofthe tax. If, however, a schoolboard issues bonds that are backed by the proceeds ofthe tax under this Section, then the county board may not reduce the tax rate ordiscontinue the tax ifthat rate reduction or discontinuance would inhibit the school board's ability to pay the principal and interest on those bonds as they become due. Ifthe county board reduces the tax rate or discontinues the tax, then a referendum must be held in accordance with subsection (c) ofthis Section in order to increase the rate ofthe tax orto reimpose the discontinued tax. The results ofany election that authorizes aproposition to impose a tax under this Sectionorto change the rate ofthe tax along with an ordinance imposingthetax, or any ordinance that lowers the rate or discontinues the tax, must be certifiedby the county clerk and filed with the Illinois Department ofRevenue either (i) on orbefore the first day ofApril, whereupon the Department shall proceed to administer and enforce the tax orchange in the rate as oftl1e first day ofJuly next following the filing: or {ii) on or before the first day ofOctober, whereupon the Department shall proceed to administer and enforce the tax or change in the rate as ofthe first day ofJanuary next following the filing. (h) For purposes ofthis Section, "school facility purposes" means the acquisition, development, construction, reconstrnction, rehabilitation, improvement, financing, architectural planning, and installation of capital facilities consisting of buildings, strnctures, and durable equipmentandforthe acquisition and improvement ofreal prope1tyandinterestinreal propertyrequired, or expected to be required, in connection with the capital facilities. "School-facility purposes" also includes fire prevention, safety, energyconservation, disabled accessibility, school security, and specifiedrepairpurposes set forthunder Section 17-2.11 ofthe School Cod~.5!5-1006.7. School facility occupation taxes, 551LCS 5/5-1006.7

(i) This Section does not apply to Cook County. {j) This Section may be cited as the County School Facility Occupation Tax Law. CREDIT(S) PA 86-962. An. 5.**~** 5-1006.7, added by P.A. 95-675.**~** !O. cff. Oct. 11, 2007. IITSTORICAL AND STATUTORY !\OTES P.A. 95-675 (S.B. 835) \Vas vetoed by the governor on August 27, 2007. The veto was overridden, filed without signature of the governor. and became effective on October 11, 2007.

Current through P.A. 95-720 ofthe 2008 Reg. Sess.



### (

## ( 5f5·1006.7. School facility occupation taxes, IL ST CH 55 § 5/5-1006.7



### West's Smith-Hurd Illinois Compiled StatutesA

. .nnotated Chapter55, Counties



### Act 5. Counties Code (Refs & 

### Annos)

Article 5. Powers 

### and Duties 

### ofCounty

### Boards Division

### 5-L In 

### General 

### 55 ILCS 5/5-1006.7 5/5-1006.7. School

### facility occupation taxes

§ 5-1006.7. School facility occupation taxes. 

### Effect:iw: July 

### 31, 2015 Cun·entness

(a) In anycounty, atax shall be imposeduponall personsengagedin thebusiness ofsellingtangiblepersonalproperty, otherthan personalpropertytitled orregistered 

### with an agency ofthis State's government, atretail in the county on the gross receipts from the salesmadeinthe course ofbusinessto pro\'iderevenue to be used exclusivelyfor school facilitypurposes ifapropositionfor the tax has been submittedto the electors ofthat county and appro\'edby a majority ofthose voting on the question as provided in subsection { c). The tax under this Section shall be imposed only in one-quarter percent increments and may not exceed l%. This additional tax may not be imposed on the sale offood for human consumption that is to be consumed offthe premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and prescription and non-prescription medicines, drugs, medical appliances an<l insulin, urine testing materials, syringes and needles used by diabetics. The Department ofRevenue has full powerto administer and enforce this subsection, to collect all taxes and penalties due underthis subsection, to dispose oftaxes and penalties so collected in the mannerprovided in this subsection, and lo detennine al! rights to credit memoranda arising on accountofthe erroneouspaymentofa taxorpenaltyunder this subsection. The Department shall deposit all taxes and penalties collectedunder this subsection into a special fond created for that purpose, In the administration ofand compliance with this subsection, the Department and persons who are subjectto this subsection (i) have the same rights, remedies, privileges, immunities, powers, and duties, (ii) arc subjectto the same conditions, restrictions, limitations,penalties, and definitions oftenns, and (iii) shall employ the samemodes ofprocedure as are set forth in Sections I through Io, 2 through 2-70 (in respect to all provisions contained in those Sections otherthan the State rate oftax), 2a through 2h, 3 (except as to the disposition oftaxes and penalties collected),4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 51, 6, 6a, 6b, 6c, 6d, 7. 8, 9, 10, 11, Ila, 12, and 13 ofthe Retailers' Occupation Tax Act and all provisions ofthe Unifonn Penalty and interest Actas ifthose prodsions were set forth in this subsection.
The certificate ofregistration that is issued by the Department to a retailer under the Retailers' Occupation Tax Act pem1its the retailer to engage in a business that is taxable without registering separately ·with the Department under an ordinance or resolution under this subsection.
Persons subject to any tax imposed under the authority grantedin this subsection mayreimburse themselves fortheir seller's tax liabilitybyseparately stating lhat tax as an additional charge, which maybe statedincombination, in a single amount, with State tax that sellers are required to collect under the Use Tax Act pursuantto any bracketed schedules set forth by the Department.5.'5-1006.7. Schoof facmty occupation taxes, !L ST CH 55 § 5/5-1006.7

(b) Ifa tax has been imposed under subsection (a). then a se\"\'ice occupation tax must also be imposed at the same rate upon al\ persons engaged, in the county, in the business ofmaking sales ofservice, who, as an incident to making those sales ofservice, transfer tangible personal property within the county as an incident to a sale ofservice. This tax may not be imposed on sales of food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beyerages. soft d1inks, and food prepared for immediate consumption) and prescription and nonprescription medicines, drngs, medical appliances and insulin, urine testing materials, syringes, and needles used by diabetics. The tax imposed under this subsection and all civil penalties that may be assessed as an incident thereofshall be collected and enforced by the Department and deposited into a special fund created for that purpose. The Department has full power to admi11ister and enforce this subsection. to collect all taxes and penalties due under this subsection. to dispose oftaxes and penalties so collected in the manner proYided in this subsection. and to determine all rights to credit memoranda arising on account ofthe erroneous payment ofa tax orpenaltyunder this subsection.
In the administration ofand compliance with this subsection. the Department andpersonswho are subject to this subsection shall (i) have the samerights, remedies, privileges. immunities. powers and duties. (ii) be subject to the same conditions, restrictions, limitations, penalties and definition oftcnns, and (iii) employ the same modes ofprocedure as are set forth in Sections 2 (except that that reference to State in the definition of supplier maintaining a place of business in this State means the county), 2a through 2d, 3 through 3-50 (in respect to all provisions contained in those Sections other than the State rate oftax), 4 (except that the reference to the State shall be to the county), 5, 7, 8 (except that thejurisdiction to which the tax is a debt to the extent indicated in that Section 8 is the county), 9 (except as to the disposition oftaxes and penalties collected), 10, 11, 12 (except the reference therein to Section 2b ofthe Retailers' Occupation Tax Act). 13 (except that any reference to the Slate means the county). Section 15, 16, 17, 18, 19, and 20 ofthe Service Occupation Tax Act and all provisions ofthe Uniform Penalty and Interest Act, as fully as ifthose provisions were sel forth herein.
Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their serviceman's tax liabilityby separately stating the tax as an additional charge, which may be stated in combination, in a single amount, \Vith State tax that servicemen are authorized to collect under the Service Use Tax Act, pursuant to any bracketed schedules set forth by the Department.
(c) The tax under this Section may not be imposed until the question ofimposing the tax has been submitted to the electors of the county at a regular election and approvedby a majority ofthe electors voting on the question. For all regular elections held prior to the effoctiYe date ofthis amendatory Act ofthe 97th General Assembly. upon a resolution by the county board or a resolution by school district boards that represent at least 51 

### ","o ofthe student enrollment within the county, the county board must ce11ify the question to the proper election authority in accordance withthe Election Code.
For all regular elections held prior to the effective date ofthis amendatory Act ofthe 97th General Assembly, the election authority must submit the question in substantially lhe following fonn: Shall (name ofcounty) be authorized to impose a retailers' occupation lax and a service occupation tax (commonly referred to as a "sales ta:(') at a rate of(insert rate) to be used exclusively for school facility purposes? The election authority must record the votes as "'Yes" or "No'·. Ifa majority ofthe electors voting on the question vote in the affirmative, then the countymay, thereafter, impose the tax, For all regular elections held on or after the effective date ofthis amendatory Act ofthe 97th General Assembly, the regional superintendent ofschools for the county must, upon receipt ofaresolution orresolutions ofschool district boards thatrepresent515-1006.7. Schoo! facility occupation taxes, IL ST CH 55 § 515-1006.7

more than 50% ofthe sntdent enrollment within the county, certify the question to the properelection authority for submission to the electors ofthe county at the next regular election at which the question lawfully may be submitted to the electors, all in accordance with the Election Code.
For all regular elections held on or after the effective date ofthis amendatory Act ofthe 97th General Assembly, the election authority must submit the question in substantially the following fom1:

Shall aretailers' occupation tax and a serYice occupationtax (commonly referred to as a "sales tax'') be imposed in (name of county) at a rate of(insert rate) to be used exclusively for school facility purposes? The election authority must record the \'Otes as "Yes" or ·'No·'. Ifa majority ofthe electors voting on the question vote in the affirmative, then the tax shall be imposed at the rate set fo11h in the question.
For the purposes ofthis subsection (c), "enrollment" means the head count ofthe students residing in the county on the last school day ofSeptember ofeach year, ,\·hich must be reported on the Hlinois State Board ofEducation Public School Fall Enrollmenttl-Iousing Report.
(d) The Department shall immediately pay over to the State Treasurer, ex officio, as trustee. all taxes and penalties collected under this Section to be deposited into the School Facility Occupation Tax Fund, which shall be an unappropriated trust fund held outside the State treasury. On orbeforethe 25thday ofeach calendarmonth, the Department shall prepare and ce11ify to the Comptrollerthe disbursement ofstated sums ofmoney to the regional superintendents ofschools in counties from which retailers or serYicemen lrnYe paid laxes or penalties to the Department during the second preceding calendar month. The amount to be paid to each regional superintendent ofschools and disbursed to him or her in accordance with Section 3-14.31 ofthe School Code, is equal to the amount (not including credit memoranda) collected from the county under this Section during the second preceding calendar month by the Department, (i) less 2% ofthat amount. which shall be deposited into the Tax Compliance and Administration Fund and shall be used bythe Department, subject to appropriation. to coverthe costs ofthe Department in administering and enforcingthe provisions ofthis Section, on behalfofthe county, (ii) plus an amount that the Departmentdetenninesis necessary to offset any amounts that were erroneouslypaid to a different taxingbody: (iii) less an amount equal to the amount ofrefunds made during the secondpreceding calendarmonth by the Departmentonbehalfofthe county; and (iv) less any amount that the Department determines is necessary to offset any amounts that were payable to a different taxing body but were erroneously paid to the county. When certifying the amount ofa monthly disbursement to a regional superintendent ofschools under this Section, the Department shall increaseor decrease the amountsby an amountnecessary to offset any miscalculation ofprevious disbursements within the previous 6 months from the time a miscalculation is discovered. Within 

### JO days after receipt by the Comptroller from Lhe Department of the disbursement certillcation to the regional superintendents ofthe schools provided for in this Section, the Comptroller shall cause the orders to be drawn for the respective amounts in accordance with directions contained in the certification. 

### Jf the Department determines that a refund should be made under this Section to a claimant instead of issuing a credit memorandum, then the Department shall notifythe Comptro!ler, who shall cause the orderto be drawn forthe amount specified and to the person named in the notification from the Department. The refund shall be paid by the Treasurer out ofthe School Facility Occupation Ta.x Fund.515-1006.7. School facility occupation taxes, JL ST CH 55 § 5/5·1006.7

(e) For the purposes ofdetem1ining the local gon:rnmcntal unit whose tax is applicable, a retail sale by a producer ofcoal or another mineral mined in lllinois is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from the earth. This subsection does not apply to coal or another mineral when it is delivered or shipped by the seller to the purchaser at a point outside Illinois so that the sale is exempt under the United States Constitution as a sale in interstate or foreign commerce. 

### (fJ Nothing in this Section may be construed lo authorize a lax to be imposed upon the privilege ofengaging in any business that under the Constitution ofthe United States may not be made the subject oftaxation by this State.
(g) Ifa countyboard imposes a tax under this Section pursuant to areferendumheld before 1he effective date ofthis amenda!Oty Act ofthe 97th General Assembly at a rate below the rate set forth in the question approYed by a majority ofelectors ofthat county voting on the question as provided in subsection (c). then the county board may, by ordinance, increase the rate ofthe tax up to the rate set forth in the question approved by a majo1ity ofelectors ofthat county voting on the question as provided in subsection ( c). Ifa county board imposes a tax underthis Section pursuantto a referendum heldbefore the effective date of this amendatoJ)' Act ofthe 97th General Assembly, then the board may, by ordinance, discontinue orreduce the rate ofthe tax. !fatax is imposedunderthis Section pursuant to a referendum held on or afterthe effective date ofthis amendatOI)' Act ofthe 97th Genera! Assembly, then the countyboard mayreduce or discontinue the tax, but only in accordance with subsection (h-5) ofthis Section. If, however, a school board issues bonds lhat are secured by the proceeds ofthe tax under lhis Sectio1\, then the county board may not reduce the tax rate or discontinue the tax ifthatrate reduction or discontinuance ,vould adversely affect the school board's ability to pay the principal and interest on those bonds as they become due or necessitate the extension of additional property taxes topaythe principal and interest on thosebonds. Ifthe countyboardreduces the tax rate ordiscontinues the tax, then a referendum must be held in accordance with subsection (c) ofthis Section in order to increase the rate ofthe lax orto reimpose the discontinued tax. Until January 1, 2014, the results ofany election that imposes,reduces, or discontinues a tax under this Section mustbe certified by the election authority, and any ordinance that increases or lowers the rate or discontinues the tax mustbe certified by the county clerk and, in each case, filed with the Illinois Department of Revenue either (i) on or before the first day of April, whereupon the Depa11ment shall proceed to administer and enforce the tax or change in the rate as ofthe first day ofJuly next fol!owing the filing; or (ii) on or before the first day ofOctober, whereupon the Department shall proceed to administer and enforce the tax or change in the rate as ofthe first day ofJanuary next following the filing. Beginning January l, 2014, the results ofany election that imposes, reduces, or discontinues a tax under this Section must be certified by the election authority. and any ordinance that increases or lowers the rate or discontinues the tax must be certified by the county clerk and, in each case, filed with the I!linois Department ofRevenue either (i) on orbefore the first day ofMay, whereupon the Depai1ment shall proceed to administer and enforce the tax or change in the rate as ofthe first day ofJuly next following the filing; or (ii) on or before the first day ofOctober, whereupon the Depatiment shall proceed to administer and enforce the tax or change in the rate as ofthe first day ofJanuary next following the filing.
(h) Forpurposes ofthis Section, ·'school facility purposes" means (i) the acquisition, development, construction, reconstruction. rehabilitation, improvement, financing, architectural planning, and installation of capital facilities consisting of buildings, structures, and durable equipmentandforthe acquisition and improvementofreal propertyand interestin real propertyrequired, or expected to be required, in connection with the capital facilities and (ii) the payment ofbonds or otherobligations heretofore orhereafter issued, includingbonds or other obligations heretofore orhereafterissued to refund or to continue to refund bonds or other obligations issued, for school facility purposes, provided that the taxes levied to pay those bonds are abated by the amount ofthe taxes imposed underthis Section that are used to pay those bonds. "'School-facility purposes" also includes fire

## ( 515·1006.7. School facility occupation tax.es. IL ST CH 55 § 515-1006.7
prevention, safety, energy conser\"ation. accessibility. school security, and specified repair purposes set forth under Section 17-2.11 ofthe School Code.
(h"5) A countyboard ina countywhere a tax has been imposedunderthis Section pursuant to a referendum held on orafterthe effective date ofthis amendatory Act ofthe 97th General Assembly may, by ordinance or resolution, submit to the voters of the county the question ofreducing or discontinuing the tax. In the ordinance or resolution, the county board shall certify the question to tlie properelection authmity in accordance with the Election Code. Theelectionauthority must submitthe question in substantially the follO\ving 

### form:

Shall the school facility retailers' occupation tax and ser.-ice occupation tax (commonly referred to as the "school facility sales tax··) currently imposed in (name ofcounty) at a rate of(insert rate) be (reduced to (insertrate))(discontinued)?
if

### a majority ofthe electors \"Oting on the question vote 

### in the affirmative, then, subject to the pro\"isions ofsubsection (g) of lhis Section. the tax shall be reduced or discontinued as set forth in the question.
(i) This Section does not apply to Cook County.
(j) This Section may be cited as the County School facility Occupation Tax Law.
Credit<; P.A. 86-962. Ari. 5.**~** 5-1006.7, added by P.A. 95-675,**~** I0. eff. Oct. 11. 2007. Amended by P.A. 97-5--1-2. § 10. df. Aug. 23, 201 I: P.A. 9-;q;13. § 190. cff July 13. 201:?.: P.A. %-584.**~** 30. dl Aug. 

### 2.7. 2013: P.A. 99-143.**~** 355. eff. July 27. 2015; P.A. 99-217.**~** :W. cff. July 31. 2015.

55 I.L.C.S. 5/5-1006.7. IL ST CH 55 § 5/5-1006.7 Current through P.A. 99-487 ofthe 2015 Reg. Sess.

### (

### ( 2001245·"12. Use and occupation taxes, 70 fLCS 200/245-12



### 70 ILCS 200/245-12 

### WEST'S SMITH-HURD ILLINOIS COMPILED STATUTESANNOTATED 

### CHAPTER70. SPECIAL DISTRICTS

200/245-12. 

### L'se and occupation taxes

§ 245-12. Use and occupation taxes. 

### CMCCENTER ACT 200. CMC CENTERCODE ARTICLE 245. SALEM CIVIC CENTER

(a) The Authority may adopt a resolution that authorizes a referendum on the question of whether the Authority shall be authorized to impose a retailers' occupation tax, a service occupation tax, and a use tax in one-qum1er percent increments at a rate not to exceed 1%. The Authority shall certify the question to the proper election authorities who shall submit the question to the voters ofthe metropolitan area at the nextregularly scheduled election in accordance with the general electionJaw. [FNI] The question shall be in substantially the following form:

"Sha!\ the Salem Civic Center Authority be authorized to impose a retailers' occupation tax, a service occupation tax, and a use tax at the rate of(rate) for the sole purpose ofobtaining funds for the support, construction, maintenance, or financing of a facility ofthe Authority?"'

Votes shall be recorded as "yes" or "'no

... Ifa majority ofall votes cast on the proposition are in favor ofthe proposition, the Authority is authorized to impose the tax.

(b) The Authorityshail impose the retailers' occupationtax upon all persons engaged inthe business ofsellingtangiblepersonal property at retail inthe metropolitan area, at the rate approved by referendum, on the gross receipts from the sales made in the course ofsuch business within the metropolitan area. The tax imposed under this Section and all ci-vil penalties that may be assessed as an incident thereofshall be collected and enforced by the Depanment ofRevenue. The Departme11t has full power to administer and enforce this Section; to collect all taxes and penalties so collected in the manner provided in this Section: and to detem1ine all rights to credit memoranda arising on account ofthe erroneous payment oftax or penalty hereunder. In the administration of, and compliance with, this Section, the Department and persons who are subject to this Section shall (i) have the same rights, remedies, privileges, immunities, powers and duties, (ii) be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions, and definitions oftem1s, and (iii) employ the same modes ofprocedure as are prescribed in Sections 1, 1 a, 1a-1. Ic, Id, Ie, 1 f, Ii, 1 

### j, Ik, 1 m. ln, 2, 2-5, 2-5.5, 2-10 (in respect to all pro\'isions therein other than the State rate oftax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except as to the disposition oftaxes and penalties collected and provisions related to quarter monthly payments), 4, 5, 5a, 5b, 5c, Sd, Se, Sf, Sg, Si, 5j, 5k, 51, 6. 6a, 6b, 6c, 7, 8, 9, 10. 11, I la, 12. and 13 ofthe Retailers' Occupation Tax Act [Fl':2] and Section 3-7 ofthe Unifonn Penalty and Interest Act, [FN3] as fully as ifthose provisions were set forth in this subsection.

Persons subjectto any tax imposed under this subsection may reimburse themselves for their seller's tax liabilitybyseparately stating the tax as an additional charge, which charge may be stated in combination, in a single amount. with State taxes that seHers arerequired to co!lect, in accordance withsuch bracket schedules as the Department may prescribe. Whenever the Department detem1ines that a refund should be made under this subsection to a claimant instead ofissuing a creditmemorandum, the Deparh11ent shall notify the State Comptroller, who shall causethe warrant to be drawn forthe amount specified, and to the person named, in the notification from the Dcpaitment. The refund sha!l be paid by the State Treasurer out ofthe tax fund referenced underparagraph (g) ofthis Section.

Ifa tax is imposed 1mder this subsection (b), a tax sha!l also be imposed at the same rate under subsections (c) and (d) of this Section.

For the purpose ofdetennining whether a tax authorized under this Section is applicable, aretail sale, byaproducer ofcoal or othermineral mined in Illinois, is a sale at retail at the place where the coal or othermineral mined in Illinois is extracted from the earth. This paragraph does not apply to coal or other mineral when it is delivered or shipped by the se!ler to the purchaser at a point outside Illinois so that the sale is exemptunderthe Federal Constitution as a sale in interstate orforeign commerce.200!245-12. Use and occupation taxes. 70 ILCS 2001245-12 Nothing in this Section shall be construed to authorize the Authority to impose a tax upon the privilege ofengaging in any business which under the Constitution oftheUnited States may not be made the subject oftaxation by this State.

(c) ]fa tax has been imposed under subsection (b), a sen-ice occupation tax shall also be imposed at the same rate upon all persons engaged, in the metropolitan area, in the business ofmaking sales ofservice. who, as an incident to making those sales of service, transfer tangible personal property within the metropolitan area as an incident to a sale ofservice. The tax imposed underthis subsection and all civil pennlties that may be assessed as an incident thereofshall be collected andenforced by the Department ofReYenue. The Departmenthas full powerto administer and enforce this paragraph; to collect alltaxes and penalties due hereunder: to dispose oftaxes and penalties so collected in the mannerhereinafter provided; and to determine all rights to credit memoranda arising on account ofthe erroneous payment oftax orpenalty hereunder. In the administration of. and compliancewith this paragraph. the Department andpersons who are subjectto this paragraph shal[ (i)have the samerights, remedies. priYileges, immunities, powers, and duties, (ii) be subject to the same conditions, restrictions, limitations. penalties, exclusions, exemptions, and definitions of1enns, and (iii) employ the same modes ofprocedure as are prescribed in Sections 2 (except that the reference to State in the definition ofsupplier maintaining a place ofbusiness in this State shall mean the metropolitan area), 2a. 2b, 3 through 3-55 (in respect to all provisions therein other than the State rate oftax), 4 (except that the reference to the State shall be to the Authority). 5, 7, 8 (except that thejurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the Authority). 9 (except as to the disposition oftaxes and penalties collected, and except that the returned merchandise credit for this tax may not be taken against any State tax), l l, 12 (except the reference therein to Section 2b ofthe Retailers' OccupationTax Act). 13 (exceptthat anyreference to the State shall meanthe Authority), 15, 16, 17. 18, 19 and 20 ofthe Service Occupation Tax Act [f;'\4] and Section 3-7 ofthe Unifonn Penalty and Interest Act, as fully as ifthose proYisions were set forth herein.

Persons subject lo any tax imposed under the authority granted in this subsection may reimburse themselves for their sen·iceman's tax liabilityby separately stating the tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax that sen•icemen are authorized lo collect under the Service Use Tax Act, [F:-;:SJ in accordance with such bracket schedules as the Department may presc1ibe.

Whenever the Department determines that a refund should be made under this subsection to a claimant instead ofissuing a creditmemorandum, the Department shall notifythe State Comptroller, who shall canse the warrant to be drawn forthe amount specified, and to the person named, in the notification from the Depmtment. The refund shall be paid by the State Treasurer out ofthe tax fund referenced under paragraph (g) ofthis Section.

Nothing in this paragraph shall be construed to authorize the Authorityto impose a tax upon the priYilege ofengaging in any business which under the Constitution ofthe United States may not be made the subject oftaxation by the State.

(d) 

## rra tax has been imposed under subsection {b), ause tax shall also be imposed at the samerate upon the privilege ofusing, in the metropolitan area, any item oftangible personal property that is purchased outside the metropolitan area at retail from a retailer, and that is titled or registered at a location within the metropolitan area with an agency ofthis State's government. "Sellingprice'' is defined as in the Use Tax Act. [FN6] The lax shallbe collectedfrom persons whose Illinois address for titling or registration purposes is given as being in the metropolitan area. The tax shall be collected by the Department ofRevenue for the Authority. The tax must be paid to the State, or an exemption determination must be obtained from the Department of Revenue, before the title or certificate ofregistration for the property may be issued. The tax or proofofexemption may be transmitted to the Department by way ofthe State agency with vd1ich, or the State officer with whom. the tangible personal property must be titled orregistered ifthe Department and the Stale agency or State officer determine that this procedure v.;ill expedite the processing ofapplications for title or registration. The Department has foll power to administer and enforce this paragraph; to collect all taxes, penalties and interest due hereunder; to dispose of taxes, penalties and interest so collected in the manner hereinafter provided; and to detennine all rights to credit memoranda or refunds arising on account ofthe erroneous payment oftax, penalty or interesthereunder. In the administration of. and compliance with, this subsection, the Department and persons who are subject to this paragrapli shall (i) have the same rights, remedies, privileges, immunities, powers, and duties, (ii) be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions, and definitions ofterms, and (iii) employ the same modes ofprocedure as are prescribed in Sections 2 (except the definition of"retailer maintaining a place ofbusiness in this State"), 3, 3-5, 3-10, 3-45. 3-55, 3-65, 3-70, 3-85, 3a, 4, 6, 7, 8 (except that thejurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shal! be the Authority), 9 (except provisions relating to quarter monthly payments), 10, 11, 12, l2a, 12b, 13, 14, !5, 

### (

(

# I 200/245·12. Use and occupation taxes, 70 ILCS 2001245-12

19. 20. 21, and 22 ofthe Use Tax Act [FJ\'7] and Section 3-7 ofthe Uniforn1 Penalty and InterestAct, that are not inconsistent with this paragraph, as fully as ifthose provisions were set forth herein.

Whenever the Department detennines that 

### a refi.md should be made under this subsection to a claimant instead ofissuing 

### a credit memorandum. the Department shall notify the State Comptroller. \,·ho shall cause the order 

### to bedravm for the amount specified. and to the person named, in the notification from the Department. The refund shall be paid by the State Treasurer out ofthe lax fund referenced under paragraph (g) ofthis Section.

(e) A certificate ofregistration issued by the State Department ofRevenue to a retailer under the Retailers' Occupation Tax Act [F:\S] orunderthe SerYice OccupationTax Act 

### [FK9J shallpern1it the registrant to engage in abusiness lhat is taxed under the tax imposed under paragraphs (b). (c), or (d) ofthis Section and no additional registration shall be required. A certificate issued underthe Use Tax Act or the Service Use Tax Act shall be applicable with regard to any tax imposed underparagraph (c) ofthis Section.

( f) The results ofany election authorizing a proposition to impose a tax under this Section or effecting a change in the rate oftax shall be certified by the proper election authorities and filed with the Illinois Department on or before the first day of April. In addition, an ordinance imposing, discontinuing, or effecting a change in the rate oftax under this Section shall be adopted and a ceitified copy thereoffiled with the Department on orbefore the first day ofApril. After proper receipt ofsuch certifications. the Department shall proceed to administer and enforce this Section as ofthe first day ofJuly next fol!owing such adoption and filing.

(g) 

### The Department ofRevenue sha!l, upon collecting any taxes and penalties as proYided in 

### this Section, pay the taxes and penalties over to the State Treasurer as trustee for the Authority. The taxes and penalties shalJ be held in a trust fund outside the State Treasury. On or before the 25th day ofeach calendar month, the Department ofRevenue shall prepare and certify to the Comptrollerofthe State ofIllinois the amount to be paid to the Authority. which shall be the balance in the fund. less any amount determined by the Department to be necessary for the payment ofrefunds. Within 10 days after receipt by the Comptrollerofthe certification ofthe amount to be paid to the Authority. the Comptroller shall cause an orderto be dra,vn for paymentforthe amountin accordance withthe directions containedinthecertification.Amountsreceivedfrom the tax imposed under this Section shall be used only for the support, constmction, maintenance, or financing ofa facility ofthe Authority.

(h) When certifying the amount ofa monthly disbursement to the Authorityunderthis Section, the Department shall increase or decrease the amounts by an amount necessary to offset any miscalculation ofprevious disbursements. The offset amount shall bethe amount erroneously disbursed within the preYious 

### 6 months from the time a miscalculation is disco,,ered.

(i) This Section maybe cited as the Salem Civic CenterUse and Occupation Tax Law. CREDIT(S) 1999 Electronic Pocket Part Update P.A. 90-328, Art. 245, § 245-12, eff. Jan. I, 1998.

[FNl]lO ILCS 5/J-l et seq. [FN2J35 ILCS 110:\, 120. !a, 120:1a-l, 120. lc, 120'\d. 120,Je, 110 If, 120 Ji, 120:1j, 1201Jk, 

### 1201]111, J::!0 1 

### !11, 110:1,

120,2-5, 

### 120/2-5.5, 120,..2-10, 120·2-!5 to !20'2-70, 120,..2a, 

### 120:lb, 120/2c, 12013, 

### 11014, 120,'5, 120•5a, J20 15b, !20;5c. 

### 120:sd, 120i:Se, J2015f, !20.5g, J20·5i, 120:Sj, !20-5k, 120.'5/, 120.:6, 12tV6u, J20:6b, 120,6c, 120-7. !20 8. 120 9, 120,10, 

### 1:20'11, 120.'

### l !a, 

### 120:12, and 

### 1.10, 13. [Fl\3]35 JLCS 735/3-7. [FN4]35 ILCS 

### I\5;2, 

### l !5.i2a, 

### 1 I5.12b, 

### l 15-'3 

### to 115.3-55, J 

### 15.A, ! 

### l

### 515, 115/7, 

### l 15"8, 115·'9, 115'1

### l, 115.112, 115113, 115/15,



### 115/16.115.'17, !15'18, ll5,..]9and 115.-20. 

### W>'<5JJ5 lLCS 

### l !O'l et seq. 

### [F?\'6]35 JLCS 105/1 etseq.200/245-12. Use and occupation taxes, 70 1LCS 200i245-12

[FJ\:7]35 !LCS 105 

### 2. 105 3, !05 3-5. 105 3-10, 105 3-45, J05,3-55. 105 3-65, 105 3-70, 105 3-85. !05·3a. 105'4. 105 6,

105 

### 7, 105 8, l05 9, !05 

### I0, 

### !05. l 1. 

### 105, 12. 105, I:?:a, 

### I05 I2b, 105 13, 105 

### 14, 105 15. 

### l05. 19, 

### 105 ·20, 105 

### 21. and 105 22. [F;'\8]35 JLCS 120-1 et seq. [F\"9]35 ILCS 115 I et seq.

Prior Laws:

P.A. 86-1017, A11. 2. § 11.5. 70 !LCS 335 11.5 t 19%). 

## ''. HISTORICAL AND STATUTORY NOTES



## (200/245-12. Use and occupation taxes. !L ST CH 70 § 2001245·12



### \\Test's Smith-Hnrd Illinois Compiled StatutesAnnotated Chapter70. S1Jecial Districts

CIVIC Center

Act 

### 200. CIVIC CenterCode (Refs & 

### Annos)

Alticle 245. Salem CIVIC 

### Center

§ 

### 245-12. Use and occupation taxes. 

### 70 ILCS 200/245-12 200/245-12. Gse and occupation

### taxes EffectiYe: August 26, 2014 CutTentness

(a) The Authority may adopt a resolution that authorizes a referendum on the question of whether the Authority shall be authorized to impose a retailers' occupation tax, a service occupation tax, and a use tax in one-quarterpercent increments at a rate not to exceed !%. 

### The Authority sha!l certify the question to the proper election authorities who shall submit the question to the \'oters ofthe metropolitan area at the next regularly scheduled election in accordance with the general election law. 1 The question shall be in substantiallythe following fom1:

'"Shall the Salem Civic Center Authoritybe auth01ized to impose a retailers' occupation tax. a service occupation tax, and a ( use tax at the rate of(rate) for the sole purpose ofobtaining fonds for the support, construction. maintenance, or financing ofa facility ofthe Authority?"
Votes shaU be recorded as '"yes'" or "no". If

### a majority ofall votes cast on the proposition are in fa\•or ofthe proposition, the Authority is authorizedto impose the tax.
(b) The Authority shall impose the retailers' occupation tax upon all persons engaged in the business ofselling tangible personal property at retail in the metropolitan area, at the rate approved by referendum, on the gross receipts from the sales made in the course ofsuch business within the metropolitan area. The tax imposed under this Section and all civil penalties that may be assessed as an incident thereofshall be collected and enforcedby the Department ofRevenue. The Department has full power to administer and enforce this Section; to collect all taxes and penalties so collected in the manner provided in this Section; and to determine all rights to credit memoranda arising on account ofthe erroneous payment oftax or penalty hereunder. In the administration of, and compliance with, this Section, the Department and persons who are subject to this Section shall (i) 

### have the same rights, remedies, privileges, immunities, powers and duties, (ii) be subject to the same conditions, restrictions. limitations, penalties, exclusions, exemptions. and definitions ofterms, and (iii) employ the same modes ofprocedure as are prescribed in Sections L la, la-I, le, 

### Id, le, It~ 

### Ii, !j, lk, lm, In, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions therein other than the State rate oftax), 2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except as to the disposition oftaxes and penalties collected and provisions related to qum1er monthly payments), 4, 5, Sa, Sb, Sc, Sd, Se, Sf, 5g, 5i, 5j, 5k, 5/, 6, 6a, 6b, 6c, 7, 8, 9, I0, 11, Ila, 12, and 13 ofthe Retailers' Occupation Tax Act2 and Section 3-7 ofthe Unifonn Penalty and Interest Act, 3 as fully as ifthose provisions were set forth in this subsection.
Persons subjectto any tax imposed under this subsection may reimburse themselves for their seller's tax liability by separately stating the tax as an additional charge, \Vhich charge may be stated in combination, in a single amount, with State taxes that sellers are required to collect, in accordance with such bracket schedules as the Department may prescribe.2001245-12. Use and occupatlon taxes, IL ST CH 70 § 200/245·'!2

Whene\·er the Department determines that a refund should be made under this subsection to a claimant instead ofissuing a credit memorandum, the Department shall notify the State Comptroller, who shall cause the warrantto be drawn for the amount specified, and to the person named, in the notification from the Department. The refund shall be paid by the State Treasurer out ofthe tax fund referenced under paragraph (g) ofthis Section. lfa tax is imposed under this subsection (b), a tax shall also be imposed at the same rate under subsections (c) and (d) ofthis Section.
Forthe purpose ofdetermining whether a tax authorized under this Section is applicable, a retail sale, by a producer ofcoal or other mineral mined in Illinois, is a sale at retail at the place where the coal or othermineral mined in Illinois is extracted from the earth. This paragraph does not apply to coal or othermineral when it is delivered or shipped by the seller to the purchaser at a point outside Illinois so that the sale is exempt underthe Federal Constitution as a sale in interstate or foreign commerce. Nothing in this Section shall be construed to authorize the Authority to impose a tax upon the privilege ofengaging in any business which under the Constitution ofthe United States may not be made the subject oftaxation by this State.
(c) !fa tax has been imposed under subsection {b), a service occupation tax shall also be imposed at the same rate upon all persons engaged. in the metropolitan area, in the business ofmaking sales of service, who, as an incident to making those sales ofservice, transfer tangible personal property within the metropolitan area as an incident lo a sale ofsef\'ice. The tax imposed under this subsection and all civil penalties that may be assessed as an incident thereofshall be collected and enforced bythe DepanmentofRewnue. The Departmenthas foll power to administer and enforce this paragraph; to collect all taxes and pe11alties due hereunder: to dispose oftaxes and penalties so collected in the manner hereinafterprovided; and to detem1ine all rights to credit memoranda arising on account ofthe erroneous payment oftax orpenalty hereunder. In the administration of, and compliance withthis paragraph, the Department and persons who are subject to this paragraph shall (i) have the samerights, remedies. privileges, immunities, powers, and duties, (ii) be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions, and definitions oftenns, and (iii) employ the same modes ofprocedure as are prescribed in Sections 2 (except thal the reference to State in the definition ofsupplier maintaining a place ofbusiness in this State shall mean the metropolitan area), 2a, 2b, 3through 3-55 (in respect to all provisionstherein otherthan the State rate oftax), 4 (exceptthat the reference to the State shall be to the Authority), 5, 7, 8 (except that thejurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the Authority), 9 (except as to the disposition oftaxes and penalties collected, and except that the returned merchandise credit for this tax may not be taken against any State tax), 11, 12 (except the reference therein to Section 2b ofthe Retailers' Occupation Tax Act), 13 (except that any reference to the State shall mean the Authority), 15, 16, 17, l8, 19 and 20 ofthe Se1Yice Occupation Tax Act'+ and Section 3-7 ofthe Uniform Penalty and Interest Act, as fully as ifthose pro\·isions were set forth herein.
Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their scl"\"iceman's tax liability by separately stating the tax as an additional charge, which charge may be stated in combination. in
a single amount, with State tax that servicemen are authorized to co!lect under the Service Use Tax Act, 5 in accordance with such bracket schedules as the Department mayprescribe. Whenever the Department detennines that a refund should be made under this subsection to a claimant instead ofissuing a credit memorandum, the Department shall notifythe State Comptroller, who shall cause the warrant to be drawn forthe amount specified, and lo the person named, in the notification from the Department. The refund shall be paid by the State Treasurer out ofthe tax fond referenced under paragraph {g) ofthis Section. Nothing in this paragraph shall be construed to authorize the Authority to impose a tax upon the priyiJege ofengaging in any business which under the Constitution ofthe United States may not be made the subject oftaxation by the State. 

### (

### ( 200/245-12. Use and occupation taxes. IL ST CH 70 § 

### 200/245-12

(d) Ifa tax has been imposed under subsection (b). 

### a use ta-..: shall also be imposed at the same rate upon the privilege ofusing, in the metropolitan area, any item oftangible personal property that is purchased outside the metropolitan area at retail from a retailer. and that is titled or registered at a location within the metropolitan area with an agency ofthis State's gm·emment. "Selling price·' is defined as in the Use Tax Act.(, The tax shall be collected from persons whose Illinois address for titling or registration purposes is given as being in the metropolitan area. The tax shall be collected by the Department ofRevenue for the Authority. TI1e tax must be paid to the State, or an exemption determination must be obtained from the Department of Revenue, before the title or certificate ofregistration for the property may be issued. The tax or proofofexemption may be transmitted to the Department by way ofthe State agency with which, or the State officer with whom, the tangible personal property must be titled or registered ifthe Department and the State agency or State officer detennine that this procedure 

### wi!l expedite the processing ofapplications for title orregistration. The Departmenthas full powerto 

### administerand enforce thisparagraph; to collect all taxes.penaltiesand interest due hereunder; to dispose oftaxes, penalties and interest so collected in the manner hereinafter proYided: and to detennine all rights to credit memoranda orrefunds arising on account ofthe erroneous payment oftax, penalty or interest hereunder. In the administration of. and compliance with, this subsection, the Department and persons who are subject to this paragraph shall (i) 

### have the same rights, remedies, privileges. immunities, powers, and duties, (ii) be subject to the same conditions, restrictions. limitations, penalties, exclusions, exemptions, and definitions ofterms. and (iii) employ the same modes ofprocedure as are prescribed in Sections 2 (except the definition of·'retailermaintaining aplace ofbusiness in this State''), 3, 3-5, 3-1 0, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, 4, 6, 7, 8 (except that thejurisdiction to \Yhich the tax shall be a debt to the extent indicated in that Section 8 shall be the Authority), 9 (except provisions relating to 

### quarter monthly payments), 10. 11, 12. 12a, 12b, 13. 14, 15, 19, 20, 21, and 22 oftl1e Use TaxAct 7 

### and Section 3-7 ofthe Uniform Penalty and InterestAct, that are not inconsistent with this paragraph. as fully as ifthose provisions were set f011h herein. ·whenever the Department detem1ines that a refund should be made under this subsection to a claimant instead ofissuing a credit memorandum, the Department shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified, and to the person named, in the notification from the Department. The refund shall be paid by the State Treasurer out ofthe tax fund referenced under paragraph (g) ofthis Section.
(e) A ce1iificate ofregistration issued bythe State DepartmentofReYenue to aretailerunderthe Retailers' OccupationTax Act)< or under the Service OccupationTax Act IJ 

### shall pem1it the registrant to engage in abusiness that is taxed underthe tax imposed under paragraphs (b), (c). 

### or (d) ofthis Section and no additional registration shall be required. A certificate issued under the Gse Tax Act or the Service lJse Tax Act shall be applicable with regard to any tax imposedunder paragraph (c) ofthis Section.
(f) 

### The results ofany election authorizing a proposition to impose a tax under this Section or effecting a change in the rate oftax shall be certified by the proper election authorities and filed with the Illinois Department on or before the first day of April. In addition, an ordinance imposing, discontinuing, or effecting a change in the rate oftax under this Section shall be adopted and a certified copy thereoffiled with the Department on or before the first day ofAp1il. After proper receipt ofsuch certifications, the Department shall proceed to administer and enforce this Section as ofthe first day ofJuly next following such adoption and filing.
(g) The Depa1iment ofRevenue shall, upon collecting any taxes and penalties as provided in this Section, pay the taxes and penalties over to the State Treasurer as trustee for the Authority. The taxes and penalties shall he held in a trust fund outside the State Treasury. On or before the 25th day ofeach calendar month, the Department ofRevem1e shall prepare and certify to the Comptroller ofthe State ofIllinois the amount to be paid to the Authority, which shal! be the balance in the fond, less200!245-12. Use and occupation taxes, tl ST CH 70 § 200/245-12

any amount determined by the Department to be necessary for the payment ofrefunds. Within IO days after receipt by the Comptroller ofthe certification ofthe amount to bepaidto the Authority. the Comptroller shall cause an order to be drawn for paymentforthe amount in accordance withthe directions contained in the certification. AmountsreceiYed from the tax imposed under this Section shall be used only for the support. constrnction, maintenance. or financing ofa facility ofthe Authority.
(h) Whencertifyingthe amount ofa monthly disbursement to the Authorityunderthis Section,the Depa11ment shat! increase or decrease the amounts by an amount necessary to offset any miscalculation ofpreYious disbursements. The offset amount shall be the amount erToneously disbursed within the previous 6 months from the time a misnilculation is discovered.
(i) This Section may be cited as the Salem Civic Center Use and Occupation Tax Law.

Credits P.A. 90-323, An. 245. 

### f 245-12

. .::ff. Jan. 

### L 1998. Amended by P.A. 98-1098.**~** 65. eff. .-\ug. 26. 2014.

Footnotes llllLCS5 l-l ct~cq. 2 35!LCS J:::O L l:::O la, 12U la-L l2U:lc. l20 Id, l2U·k 12U If, 121\ li.12ll lj.12U lk, !20 lm.12U In, 1202, 1202-5, 120 2-5.5. 120'2-lil. !21)'.:-12. 1202-15 to J'.'.0'2-70, l20'2a. l202b, !20'::'.c. 1203. 120'4. 12u·5_ 1:::o·sa, 1::(15b. 1205c, 12tl5d. l'..W5c. 120 Sf; 120 5g. l20 5i, 1'.'.0 5.i, 120·5J.... 120 5!, 120 6. 120 Ga. 120 6b, 120 6c. 120 7, 120 8, 120 9, 1:::0 10, 120'] l, 120 Ila, 120 12, and 12U 13. 35 JLC'S "77,5 3-7. 4 35 ILCS 115 '.'., 115 '2a, 115 ·:::b. 115:3to 115 '3-55, 115.4, I l5 5. l 15 7, 115:8. 115 ·9, 115 11, l l5 1 '.?., 115 13, l l 5 15. ! 15' !fl, ! 15 1 I. 1\5 rn, ll5 l9andll520. 5 35 JLCS I\1) I cl seq. 6 J~ JIXS JO~ l ~t :..eq. 7 35 ILCS 105 2, 105 3, 105 3-5, 105 3-10, 105 3-45, 105·3-55, !05'3-65. 105 3-70, 105 3-85, 105'3:i, 105 4, 105·6, 105 7, !05 8, 105'9. 105 HI. l05 ll. 1(15 12. l05 12a, l05'12h, ]US 13. 105 14. 10515. 105'19. 105 20. 105'21, and 105·2:?.. K J5 JLCS I:?.O I ct ~c,1. 9 35 !LCS 115 ! ~!seq. 70 I.L.C.S. 200.1245-12, IL ST CH 70 § 2001245-12 Current tluough P.A. 99-487 ofthe 2015 Reg. Sess. 

### (

### ( 470/31. STAR bond occupation taxes, 50 ILCS 470131

West's 

### Smith-HurdIllinois Compiled Stah1tesAnnotated

Chapter

### 50. Local Government

Debt

### andBorrowing

Act470. 

### limovationDevelopmcntand Economy Act

§ 31. STARbond occupation taxes. 

### 50 ILCS 

### 470/31 470/31. STAR

### bond occupation taxi?s Effective: 

### June 24, 2010 Currentness

(a) Ifthe corporate authorities ofa political subdivision have established a STAR bond district and have elected to impose a tax by ordinance pursuant to subsection (b) or(c) ofthis Section, each year afterthe date ofthe adoption ofthe ordinance and until all STARbond project costs and all political subdivision obligations financing the ST ARbondproject costs, ifany, have been paid in accordance with the STARbond project plans, but in no event longer than the maximum maturity date ofthe last ofthe STAR bonds issued for projects in the STARbond district, all amounts generated by the retailers' occupation tax and service occupation tax shall be collected and the tax shall be enforced by the Department ofRe\·enue in the same manner as all retailers' occupation taxes and serviceoccupationtaxes imposed in the political subdiYision imposing the tax. The corporate authorities ofthe political subdivision shall deposit the proceeds ofthe taxes imposed under subsections (b) and (c) into either (i) a special fund held by the corporate authorities ofthe political subdivision called the STAR Bonds Tax Allocation Fund for the purpose ofpaying ST AR bond project costs and obligations incurred in the payment ofthose costs ifsuch taxes are designated as pledged STAR revenues by resolution or ordinance ofthe political subdivision or (ii) the political subdivision's general corporate fund ifsuch taxes are not designated as pledged ST ARrevenues by resolution orordinance. Thetax imposedunderthis Sectionby a municipality maybeimposedonly ontheportion ofa STARbonddistrict thatis within the boundaries ofthe municipality. For anypart ofa ST ARbond districtthatlies outside oftheboundaries ofthat municipality, the municipality in which the otherpart ofthe STAR bond district lies (or the county, in cases where a portion ofthe STAR bond district lies in the unincorporated area ofa county) is authorized to impose the tax underthis Section on that part ofthe ST ARbonddistrict.
(b) The corporate authorities of a political subdivision that has established a STAR bond district under this Act may, by ordinance or resolution, impose a ST AR Bond Retailers' Occupation Tax upon all persons engaged in the business ofselling tangible personal property, other than an item oftangible personal property titled or registered with an agency ofthis State's government, atretail inthe ST ARbonddistrict at a rate not to exceed I'% ofthe grossreceipts from the sales made in the course ofthat business, to be imposed only in 0.25% increments. The tax may notbe imposed on food for human consumptionthatis to be consumed offthe premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption), prescription and nonprescription medicines, drugs, medical appliances, modifications to a motor vehicle for the purpose ofrendering it usable by a disabled person, and insulin, urine testing materials, syiinges, and needles used by diabetics, for humanuse. The tax imposed under this subsection and all civil penalties that may be assessed as an incident thereofshall be collected and enforced by the Department ofRevenue. The certificate ofregistration that is issued by the Department to a retailer under the ( Retailers' Occupation Tax Actshal! pennitthe retailer to engage in a business that is taxable under any ordinance orresolution enacted pursuant to this subsection without registering separately with the Department under such ordinance orresolution or470/31. STAR bond occupation taxes, 50 !LCS 470131

underthis subsection. The DepartmentofRevenue shall have full powerto administer andenforce this subsection, to collect al[ taxes and penaltiesdue underthis subsectionin the mannerhereinafterprovided, and to determine all rights tocreditmemoranda arising on account ofthe erroneous payment oftax or penalty under this subsection. Jn the administration of, and compliance with, this subsection, the Department and persons who are subject to this subsection shall haw the same rights, remedies, privileges. immunities,powers, and duties, and be subjectto the same conditions,restrictions, limitations,penalties, exclusions, exemptions, and definitions ofterms and employ the same modes ofprocedure, as are prescribed in Sections 1, la throttgh lo, 2 through 2-65 (in respect to all provisions therein otherthan the Staterate oftax), 2c through 2h, 3 (except as to thedisposition oftaxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, Se, Sf, 5g, 5i. 5j, 5k. 51, 6, 6a, 6b, 

### Ge, 7, 8, 9, 10, 11, 12, 13, and 14 of the Retailers' Occupation Tax Act and all provisions ofthe Uniform Penalty and Interest Act, as fully as ifthose provisions were set forth herein.
!fatax is imposedunder this subsection (b), a tax shall also be imposedunder subsection (c) ofthis Section.
(c) Ifa tax has been imposed under subsection (b), a STAR Bond Service Occupation Tax shall also be imposed upon all personsengaged,inthe STARbonddistrict, inthebusiness ofmaking salesofservice,who, as anincidenttomakingthose sales ofservice, transfer tangible personal property within the STAR bond district, either in the fonn oftangible personal property or in the fom1 ofreal estate as an incident to a sale ofservice. The tax shall be imposed at the same rate as the tax imposed in subsection (b) and shal! not exceed\% ofthe selling price oftangible personal property so transferred within the STAR bond district, to be imposed only in 0.25% increments. The tax may not be imposed on food for human consumption that is to be consumed offthepremises where 

### it is sold (other than alcoholic beverages, soft dflnks, and food that has been prepared for immediate consumption), prescription and nonprescription medicines, dmgs,medical appliances, modifications to a motor vehicle forthe purpose ofrendering it usable by a disabled person, and insulin, urine testing materials, syringes, and needles used by diabetics, for humanuse. The tax imposed under this subsection and all civil penalties that may be assessed as an incident thereofshall be collected and enforced by the Depmtment ofRevenue. The certificate ofregistration that is issued by the Department to a retailer under the Retailers' Occupation Tax Act or under the Service Occupation Tax Act shall permit the registrant to engage in a business that is taxable under any ordinance or resolution enacted pursuant to this subsection without registe1ing separatdy with the Department under that ordinance or resolution or under this subsection. The Department ofRevenue shall have full power to administer and enforce this subsection, to collect al! taxes and penalties due under this subsection, to dispose oftaxes and penalties so collected in themanner hereinafterproYided, andto detem1ine all 1ights to creditmemoranda arising onaccount of the erroneous paymentof taxorpenaltyunderthis subsection. Inthe administration of, andcompliancewiththis subsection, the Departmentandpersons who are subjectto this subsection shall ha\'ethe samerights, remedies,priYileges, immunities,powers, and duties, and be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions, and definitions ofterms and employ the same modes ofprocedure as are prescribed in Sections 2, 2a through 2d, 3 through 3-50 (in respect to all provisions therein other than the State rate oftax), 4 (except that the reference to the State shall be to the STAR bond district), 5, 7, 8 (exceptthat thejurisdiction to which the tax shall be a debt to the extentindicated in that Section 8 shall be the political subdiYision), 9 (except as to the disposition oftaxes and penalties collected, and except thatthe returned merchandise credit for this tax maynotbe tahn against any State tax), 10, I l, 12 (excepl lhl:l referenct: lht:rein lo Section 2b ofthe Relaikr:s' Occupation Tax Act), 13 (except that any reference to the State shall mean the political subdivision), the first paragraph of Section 15, and Sections 16, 17, 18, 19 and 20 ofthe Service Occupation Tax Act and all provisions ofthe Unifmm Penalty and Interest Act, as fully as ifthose provisionswere set fm1h herein.
Ifa tax is imposed under this subsection (c), a tax shall also be imposedunder subsection (b) ofthis Section.
(d) Persons subject to any tax imposed under this Section may reimburse themselves for their seller's tax liability under this Section by separately stating the tax as an additional charge, which charge may be stated in combination, in a si11glc amount, 

### (

### ( 470/31. STAR bond occupation taxes. 50 ILCS 470/31

with State taxes that sellers are required to collect under the Use Tax Act, in accordance with such bracket schedules as the Department may prescribe.
Wheneverthe Departmentdetermines that a refund should be made under this Section lo a claimant instead ofissuing a credit memorandum, the Department shall notify the StateComptroller,who shall cause the orderto be drawn for theamountspecified and to the person named in the notification from the Deparhnent. The refund sha[I be paid by the State Treasurer out ofthe STAR Bond Retailers' Occupation Tax Fund.
The Department shall immediatelypayoverto the StateTreasurer, exofficio, as trnstee, all taxes, penalties, and interestcol1ected under this Section for deposit into the STARBond Retailers' Occupation Tax Fund. On or before the 25th day ofeach calendar month, the Department shalJ prepare and certifyto the Comptrollerthe disbursement ofstated sums ofmoney to namedpolitical subdivisions from the STAR Bond Retailers' Occupation Tax fund, the political subdivisions to bethose from which retailers have paid taxes orpenalties under this Section to the Department during the second preceding calendarmonth. The amount to be paid to each political subdivision shall be the amount {not including credit memoranda) collected underthis Section drning the second preceding calendar month by the Departmentplus an amount the Departmentdetermines is necessary to offset any amounts that were erroneously paid to a different taxing body, and not including an amount equal to the amount ofrefunds made during the second preceding calendar month by the Department, less 3% ofthat amount, which shall be deposited into the Tax Compliance and AdministrationFund and shall beusedbythe Department, subject to appropriation, to coverthe costs ofthe Department in administering and enforcingthe provisions ofthis Section, onbehalfofsuchpolitical subdivision, andnot including any amountthatthe Departmentdeterminesis necessary to offset any amounts thatwere payableto a different taxing bodybut were erroneouslypaidto the political subdivision. Within 10 days aflerreceipt by the Comptrol!erofthedisbursement certification to the political subdivisions provided for in this Section to be given to the Comptroller by the Depa11ment, the Comptroller shall cause the orders to be drawn for the respective amounts in accordance with the directions contained in the certification. Theproceeds ofthe tax paidto political subdivisionsunder this Section shallbe depositedinto either{i) the STAR Bonds Tax Allocation Fund by the political subdivision if the political subdivision has designated them as pledged STAR revenues by resolution orordinance or {ii) the political subdivision's general corporate fund ifthe political subdivision has not designated them as pledged STAR re\'enues.
An ordinance or resolution imposing or discontinuing the tax under this Section or effecting a change in the rate thereofshall either {i) be adopted and a certified copy thereoffiled with the Department on or before the first day ofApril, whereupon the Department, ifall otherrequirements ofthis Section are met, shall proceedto administer and enforce this Section as ofthe first day ofJuly next following the adoption and filing; or (ii) be adopted and a certified copy thereoffiled withthe Department on or before the first day ofOctober, whereupon, ifall other requirements ofthis Section are met, the Department shall proceed to administer and enforce this Section as ofthe first day ofJanuarynext following the adoption andfiling.
The Department ofRevenue shall not administer or enforce an ordinanceimposing, discontinuing, or changing the rate ofthe tax underthis Sectionuntil the political subdivision also pro\'ides, in the mannerprescribed by the Department, the boundaries ofthe STAR bond district and each address in the ST AR bond district in such a way that the Department can detem1ine by its address whether a business is located in the STARbond district. The political subdivision must provide this boundary and address information to the Department on or before April I for administration and enforcement ofthe tax under this Section bythe Department beginning on the following July I and on orbefore October 1for administration and enforcement ofthe tax under this Section bythe Departmentbeginning on the following January I. The Department ofRevenue shall not administer or enforce any change made to the boundaries ofa STAR bond district or any address change, addition, or deletion until the political subdivision reports the boundary change or address change, addition, or deletion to the Department in the manner prescribed by the Department. The political subdivision must provide this boundary change or address change, addition, or deletion infonnation to the Department on or before April 1 for administration and enforcement by the Department ofthe change, addition, ordeletion beginning on the following July 1and on orbefore October I for administration and enforcement by the Department ofthe change, addition, or deletion beginning on the following Janumy I. The retailers in the STAR bond district shall be responsible for charging the tax imposed under this Section. Ifa retailer is incorrectly included or excluded470131. STAR bond occupation taxes, 50 lLCS 470131

from the list ofthose required to collect the tax underthis Section, both the Department ofRevenue and the retailer shall be held ham1kss ifthey reasonably relied on infomtation provided by the political subdivision.
A political subdivisim1 that imposesthe tax underthis Sectionmust submit to the DepartmentofRevenue any otherinformation as the Department may require that 

### is necessary for the administration and enforcement ofthe tax. When certifying the amount of a monthly disbursement to a political subdivision under this Section, the Department shall increase 

### or decrease the amount by an amount necessary to offset any misallocation of pre,;ious disbursements. The offset amount shall be the amount erroneously disbursed within the previous 

### 6 months from the time a misal!ocation is discovered. Kothing in this Section shall be construed to authorize the political subdivision to impose a tax upon the privilege ofengaging in anybusiness ,vhich underthe Constitution ofthe L'nited States may not be made the subject oftaxationbythis State.
(e) When ST AR bond project costs, including, without limitation, al! political subdivision obligations financing STAR bond projectcosts,havebeenpaid, any surplus fonds then remaining in the ST ARBonds Tax Allocation Fund shallbe distributed to thetreasurer ofthe political subdivision for depositinto the political subdivision's general corporate fund. Upon payment ofall ST ARbond project costs and retirement ofobligations. but in no event later than the maximum maturity date ofthelast ofthe STAR bonds issued in the STAR bond district, the political subdivision shall adopt an ordinance immediately rescinding the taxes imposed pursuant to this Section and file a certified copy ofthe ordinancewith the Department 

### in the form and manner as described in this Section.

Credits P.A. 96-939, §3L eff. June 24. 20I0.

RESEARCH REFERENCES Et1cyclopedias 111inois Law and Practice Counties§ 38, Powerto BorrowMoneyand IncurDebts, Generally. 50 LL.C.S. 470/31. IL ST CH 50 §

### 470131 Current through P.A. 97-680 ofthe 2012 Reg. Sess. Copr(c) 2012 Thomson Reuters

I ,,,1,,f ih,,cow,,1 

### (

### ( 470/31. STAR bond occupation taxes. IL ST CH 50 § 470131



### \Vest's Smith-Hurd Illinois Compiled Statutes.Annotated Chapter 50. Local GO\·ernment 

### Debt and Borrowing

Act470. InnO\·ation 

### Development and EconomyAct**~** 31. STAR bond occupation taxes. 

### 50ILCS 470/31 470/31. STARbond occupation taxes 

### Effective: July 27, 2015 

### Currentness

(a) Ifthe corporate authorities ofa political subdivision have established a STAR bond district and haYe elected to impose a tax by ordinancepursuant to subsection (b) or(c) ofthis Section, each year after the date ofthe adoption ofthe ordinance and until all STARbond project costs and all political subdivision obligations financing the STARbond project costs, ifany, have been paid in accordance ,vith the ST AR bond project plans, but in no e\'ent longer than the maximum matmity date ofthe last ofthe STAR bonds issued for projects in the STAR bond district, all amounts generated by the retailers' occupation tax and seITice occupation tax shall be collected and the tax shall be enforced by the Department ofRevenue in the same manner as all retailers' occupationtaxes and service occupation taxes imposed in the political subdivisionimposing the tax. The corporate authorities ofthe political subdiYision shall deposit the proceeds ofthe taxes imposed under subsections (b) and (c) into either (i) a special fond held by the corporate authorities ofthe political subdivision called the STAR Bonds Tax Allocation Fund for the purpose ofpaying STAR bond project costs and obligations incurred in the payment ofthose costs ifsuch taxes are designated as pledged STAR revenues by resolution or ordinance ofthe political subdivision or (ii} the political subdivision's general corporate fund ifsuch taxes are not designated as pledged STAR revenues by resolution or ordinance. The tax imposed underthis Sectionbya municipality may be imposed only on the portion ofa ST AR bond district that is within the boundaries oft he municipality. For anypart ofa STAR bond district thatlies outside ofthe boundaries ofthat municipality, the municipality in which the other part ofthe STAR bond district lies (or the county, in cases where a portion ofthe STAR bond district lies in the unincorporated area ofa county) is authorized to impose the tax under this Section on that pait ofthe STAR bond district.
(b) Thecorporateauthorities ofapoliticalsubdivisionthat has establisJ1eda STARbonddistrictunderthis Actmay,byordinance or resolution, impose a STAR Bond Retailers' Occupation Tax upon all persons engaged in the business ofselling tangible personal prope11y, otherthan an item oftangible personal propertytitled orregistered with an agency ofthis State's government, at retail in the STAR bond district at a rate not to exceed I% ofthe gross receipts from the sales made in the comse ofthat business, to be imposed only in 0.25% increments. The tax may not be imposed on food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food that bas been prepared for immediate consumption), prescription and nonprescription medicines, drngs. medical appliances, modifications to a motor vehicle for the purpose ofrendering it usable by a person with a disability, and insulin, urine testing materials, syri11ges, and needles used by diabetics, for human use. The tax imposed under this subsection and all civil penalties that maybe assessed as an incident thereofshall be collectedand enforced by the Department ofRevenue. The certificate ofregistration that is issued by the Department to a retailer under the Retailers' Occupation Tax Act shal\ permitthe retailer to engage in abusiness that is taxable under any ordinance orresolution enacted pursuant to this subsection without registering separately with the Department under such ordinance or resolution or470!31. STAR bond occupation taxes. JL ST CH 50 § 470/31

underthis subsection. TheDepartment ofRevenue shall have full powerto administerandenforce this subsection, to collect all taxes andpenalties dueunderthis subsection in the mannerhereinafterprovided, andto detennine all rights to creditmemoranda arising on account ofthe erroneous payment oftax or penalty underthis subsection. In the administration of, and compliance with, this subsection, the Depmiment and persons who are subject to this subsection shall have the same rights, remedies, prh·ileges, immunities,powers, andduties, and be subjectto the same conditions,restrictions, limitations,penalties, exclusions, exemptions. and definitions ofterms and employthe same modes ofprocedure. as are prescribed in Sections 1, 1 a through 1 

### o, 2 through 2-65 (inrespectto all pro\'isions therein other than the Staterate oftax). 2cthrough 2h, 3 (except as to the disposition oftaxes and penalties collected), 4. 5. 5a, 5b, 5c, 5d. 5e, 5f, 5g, 5i, 5j, 5k, 51, 6, 6a, 6b, 6c, 7, 8, 9, 10, !I, 12, 13, and 14 of the Retailers' Occupation Tax Act and all provisions ofthe Uniform Penalty and Interest Act. as fully a~ ifthose pro\"isions were set forth herein. !fatax is imposed under this subsection (b), a tax shall also be imposed under subsection (c) ofthis Section.
{c) If a tax has been imposed under subsection (b), a STAR Bond Service Occupation Tax shall also be imposed upon all personsengaged. in the STARbonddistrict, in the business ofmaking salesofservice, who. as anincidentto makingthose sales ofsen·ice, transfer tangible personal propeity within the STAR bond district. either in the fonn oftangible personal property or in the fom1 ofreal estate as an incident to a sale ofservice. The tax shall be imposed at the same rate as the tax imposed in subsection (b) and shall not exceed I'Vo ofthe selling price of tangible personal property so transferred within the ST AR bond district, to be imposed only in 0.25% increments. The tax may not be imposed on food for human consumption that is to be consumed offthe premises where it is sold (other than alcoholic beverages, soft drinks, and food that has beenprepared for immediate consumption), prescription and nonprescription medicines, drugs, medical appliances, modifications to a motor vehicle for the purpose ofrendering it usable by a person with a disability. and insulin, urine testing materials, syringes, and needles used by diabetics, for humanllSe.
The tax imposed under this subsection and all civil penalties that may be assessed as an incident thereof shall be collected and enforced by the Department ofRevenue. The certificate ofregistration thatis issuedby the Department to a retailerllnder the Retailers' Occupation Tax Act orunderthe Service Occupation Tax Act shall pennit the registrant to engage in a business that is taxable under any ordinance or resolution enacted pursuant to this subsection without registering separately with the Department under that ordinance or resolution or under this subsection. The Department of Revenue shall have full power to administer and enforce this subsection, to collect all taxes and penalties due under this subsection, to dispose oftaxes and penalties so collected in themannerhereinafterprovided, and to detennine a]\ rights to creditmemoranda arising on account of theerroneous paymentof taxorpenaltyunderthis subsection.In the administrationof. andcompliance with this subsection, the Departmentand personswhoare subjectto this subsection shall havethe same rights, remedies,privileges.immunities,powers, and duties, and be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions, and definitions oftem1s and employ the same modes ofprocedure as are prescribed in Sections 2, 2a through 2d, 3 through 3-50 (in respect to all provisions therein other than the State rate oftax), 4 (except that the reference to the State shall be to the STAR bond district), 5, 7, 8 (except that thejurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shallbe the political subdiYision), 9 (except as to the disposition oftaxes and penalties collected, and except that the returned merchandise credit for this tax maynot be taken against any State tax), 10, ! l, 12 (except the reference therein to Section 2b ofthe Retailers' Occupation Tax Act), 13 (except that any reference to the State shall mean the political subdivision), the first paragraph of Section 15, and Sections 16, I7, 18, 19 and 20 ofthe Service Occupation Tax Act and all provisions ofthe Uniform Penalty and Interest Act, as fully as ifthose provisionswere set forih herein.
Ifa tax is imposed under this subsection (c), a tax shall also be imposed under subsection (b) ofthis Section.
{d) Persons subject to any tax imposed under this Section may reimburse themselves for their seller's tax liability under this Section by separately stating the tax as an additional charge, which charge may be stated in combination, in a single amount, 

## (

### ( 470131, STAR bond occupation taxes. IL ST CH 50 § 470/31

with State taxes that sellers are required to collect under the Use Tax Act. in accordance with such bracket schedules as the Department may prescribe. \VheneYer the Department determines that a refond should be made under this Sectionto a claimant instead ofissuing a credit memorandum, the Department shallnotifythe State Comptroller,who shall causethe orderto be drawnfor the amount specified and to the person named in the notification from the Department. The refund shall be paid by the State Treasurer out ofthe STAR Bond Retailers' Occupation Tax Fund.
TheDepartmentshallimmediatelypayoverto the StateTreasurer,exofficio, as trustee. all taxes,penalties, and interestcollected underthis Section for deposit into the STAR BondRetailers' Occupation Tax Fund. On orbefore the 25th day ofeach calendar month, the Depm1ment shall prepare and certify to the Comptroller the disbursement ofstatedsumsofmoneyto namedpolitical subdivisions from the STAR Bond Retailers' Occupation Tax Fund, the political subdi'visions to be those from which retailers haYe paid taxes or penalties underthis Section to the Depmiment during the second preceding calendar month. The amount to be paid to each political subdi\·ision shall be the amount (not including credit memoranda) collected underthis Section during the second preceding calendarmonth by the Department plus an amount the Department detem1ines is necessmy to offset any amounts that were erroneously paid to a different taxing body, and not including an amount equal to the amount ofrefunds made during the second preceding calendar month by the Department, less 3% ofthat amount, which shall be deposited into the Tax Compliance and Administration Fund and shall be usedbythe Department, subject to appropriation, to coverthe costs oftheDepartment in administering and enforcing the provisions ofthis Section,on behalfofsuch political subdivision, and not including any amount that the Departmentdetennines is necessaryto offset any amountsthat werepayable to a different taxing bodybutwere erroneouslypaid to the political subdivision. Within 10 days after receipt bythe Comptroilerofthe disbursement certification to the political subdivisions provided for in this Section to be given to the Comptroller by the Depa11111ent, the Comptroller shall cause the orders to be drawn for the respectiYe amounts in accordance with the directions contained in the certification. The proceeds ofthetax paidto political subdivisions underthis Section shallbe deposited into either (i) the STAR Bonds Tax Allocation Fund by the political subdivision if the political subdivision has designated them as pledged STAR revenues by resolution or ordinance or (ii) the political subdivision's general corporate fund ifthe political subdivision has not designated them as pledged STAR revenues. An ordinance orresolution imposing or discontinuing the ta,; under this Section or effecting a change in therate thereofshall either (i) be adopted and a ee11ified copy thereoffiled with the Depmiment on or before the first day ofApril, whereupon the Department, ifall otherrequirements ofthis Section are met, shall proceed to administer and enforcethis Section as ofthe firsl day ofJuly next following the adoption and filing; or (ii) be adopted and a certified copy thereoffiled with the Departmenton or before the first day ofOctober, whereupon, ifall other requirements ofthis Section are met, lhe Department shall proceed to administer and enforce this Section as ofthe first day ofJanuary nextfollowing the adoption and filing.
The Department ofRevenue shall not administer or enforce an ordinance imposing, discontinuing, orchanging the rate ofthe tax underthis Sectionuntil thepolitical subdivision also provides, in the mannerprescribedby the Depai1ment, the boundaries ofthe STAR bond district and each address in the STAR bond district in such a way that the Department can detennine by its address whether a business is located in the ST AR bond district. The political subdivision mustprovide this boundary and address infonnation to the Department on or before April l for administration and enforcement orthe tax under this Section bythe Departmentbeginning on the following July I and on orbefore October 1for administration and enforcementofthe tax under this Section by the Depm1111ent beginning on the following January 1. The Department ofRevenue shall not administer or enforce any change made to the boundaries ofa STAR bond district or any address change, addition, or deletion until the political subdivision reports the boundary change or address change, addition, or deletion to the Department in the manner prescribed by the Depa11ment. The political subdivision must provide this boundary change or address change, addition, or deletion infonnation to the Department on or before April l for administration and enforcement by the Department ofthe change, addition, or deletion beginning on the following July I and on orbefore October l for administration and enforcement by the Department ofthe change, addition, or deletion beginning on the following Janumy 1. The retailers in the STAR bond district shall be responsible for charging the tax imposed under this Section. Ifa retailer is incorrectly included or excluded

f 1i:::1:470/31. STAR bond occupation taxes. IL ST CH 50 § 470/31

from the list ofthose required to collect the tax under this Section, both the Department ofRevenue and the retailer shal! be held harmless ifthey reasonably relied on infonnation providedby the political subdivision.
A political subdivisionthatimposes the tax under this Section must submitto the Department ofRevenue any otherinformation as the Department mayrequire that is necessary for the administration and enforcement ofthe tax. \\'hen certifying the amount of a monthly disbursement to a political subdivision under this Section, the Department shall increase or decrease the amount by an amount necessary to offset any misallocation ofprevious disbursements. The offset amount shall be the amount en-oneously disbursed within the previous 6 months from the time a mlsallocation is discowred. Nothing in this Section shall be constmed to authorize the political subdivision to impose a tax upon the privilege ofengaging in any business whichunder the Constimtion ofthe United States may not be made the subject oftaxation by this State.
(e) When STAR bond project costs, including, without limitation, a11 political subdivision obligations financing STAR bond project costs, haYe been paid, any surplus funds then remaining in the STAR Bonds Tax Allocation Fund shall be distributed to the treasurer ofthe political subdiYision for deposit into the political subdivision's general corporate fund. lJponpayment ofall STAR bond project costs and retirement ofobligations. but in no event later than the maximum maturity date ofthe last ofthe STAR bonds issued in the STAR bond district, the political subdivision shall adopt an ordinance immediately rescinding the laxes imposed pursuant to this Section and file a certified copy ofthe ordinance with the Department in the 

### fom1 and manner as described in this Section.

Crrdits P.A. 96-939,**~** 3Leff. Jm1e 24. 2010. Amended by P.A. 99-143,**~** 3-1-5. df. July 17. 2015.

50 l.L.C.S. 47013 I, IL ST CH 50 §470.131 Currentthrough P.A. 99-487 ofthe 2015 Reg. Sess. 

### (

### (



## ( 5!11-74.3-6. Business district revenue and obligations, 65 llCS 5111-74.3·6



### 65 ILCS 

### 5/11-74.3-6 West's Smith-hurd Illinois Compiled StatutesAnnotatedCurrentness

Chapter 

### 65. Municipalities Act 5. Illinois Municipal Code (Refs 

### & Annas)

Article 

### 11. Corporate Powers andFunctions (Refs & Annas)

PublicWorks, Buildings and Properl}'

Commercial BlightAreas

Division 

### 74.3. Business DishictDevelopment andRedevelopment (Refs & Annas) 

### 5/11-74.3-6. Business districtrevenueandobligations

§ 

### 11-74.3-6. Business district revenue and obligations. (a) Ifthe corporate authorities ofa municipality have approved a business district development or redewlopment plan and have elected to impose a tax by ordinance pursuant to subsections (b), (c), or (d) ofthis Section, each year after the date ofthe approval ofthe ordinance and until all business districtprojectcosts and all municipal obligationsfinancing the business district project costs, ifany, havebeenpaidin accordance with the business district development orredevelopmentplan,but in no event longer than 23 years after the date ofadoption ofthe ordinance approving the business district de\'elopmenl orredevelopment plan, all amounts generated by the retailers' occupation tax and service occupation tax shall be collected and the tax shall be enforced by the Department of Revenue in the same manner as all retailers' occupation taxes and ser\"ice occupation taxes imposed inthe municipalityimposing the tax and a[! amounts generatedby the hotel operators' occupationtax shall be collected and the tax shall be enforced by the municipality in the same manner as a!! hotel operators' occupation taxes imposed in the municipality imposing the tax. The corporate authorities ofthe municipality shall deposit the proceeds ofthe taxes imposed under subsections (b), (c), and (d) into a special fund held by the corporate authorities ofthe mnnicipality called the Business District Tax Allocation Fund for the purpose ofpaying business district project costs and obligations incurred in the payment ofthose costs. (b) The corporate authorities ofamunicipality thathas established abusiness district under this Division74.3 may,byordinance orresolution, impose a Business District Retailers' Occupation Tax upon all persons engaged in the business ofselling tangible personal property, otherthan an item oftangible personal propertytitled orregistered with an agencyofthis State's government, at retail in the business district at arate notto exceed 1 % ofthe gross receipts from the sales made in the course ofsuchbusiness, to beimposed only in 0.25% increments. The tax may not be imposed on food for human consumption that is to be consumed offthe premises where il is sold (other than alcoholic beverages, soft drinks. and food that has been prepared for immediate consumption), prescription and nonprescription medicines, drngs, medical appliances, modifications to a motor vehicle for the purpose ofrendering it usable by a disabled person, and insulin,urine testing materials, syringes, and needles usedbydiabetics. for human use. The tax imposed underthis subsection and all civil penalties that maybe assessed as an incident thereofshall be collected and enforced by the Department ofRevenue. The certificate ofregistration that is issued by the Department to aretailer underthe Retailers' OccupationTax Act shall pennitthe retailer to engage in abusiness thatis taxable under any ordinance orresolution enacted pursuant to this subsection without registering separately with the Department under such ordinance or resolution or under this subsection. The Department ofReYenue sha11 have full power to administer and enforce this subsection; to co!lect all taxes andpenalties dueunderthis subsectionin the mannerhereinafterprovided; and to detennine all rights to credit memoranda arising on account ofthe en-oneous payment oftax or penalty under this subsection. In the administration of, and compliance with, this subsection, the Department and persons who are subject lo this subsection shall liave the same rights, remedies, privileges, immunities,powers and duties, and be subjectto the same conditions, restrictions, limitations,penalties, exclusions, exemptions, and definitions ofterms and employ the samemodes ofprocedure, as are prescribed in Sections I, la through Jo, 2through 2-65 (in respect to all provisions therein other than the Stalerate oftax), 2c through 2h, 3 (except 

### as to the disposition5111·74.3-6. Business district revenue and obligations, 65 lLCS 5111-74.3-6

oftaxes and penalties collected), 4, 5, 5a. 5c, 5d, 5e, Sf. 5g, Si, 5j, 5k, 51. 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, !2, 13, and 14 ofthe Retailers' Occupation Tax Act and all proYisions ofthe L'niform Penalty and Interest Act, as fully as ifthose proYisions \Vere set forth herein. Persons subject to any tax imposed under this subsection may reimburse themseJycs for their seller's tax liability under this subsection by separately stating the tax as an additional charge, which charge may be statedin combination, in a single amount. with State taxes that sellers are required to collect under the Use Tax Act, in accordance with such bracket schedules as the Department may prescribe. WheneYer the Department detem1ines that a refund should be made under this subsection to a claimant instead ofissuing a credit memorandum, the Department shall notif)' the State Comptroller, who shall cause the orderto be drawn for the amount specified and to the person named in the notification from the Department. The refund shall be paid by the State Treasurer out ofthe business district retailers' occupationtax fund. The Depmtmentshall immediatelypayovertothe State Treasurer, exofficio, as trustee, all taxes, penalties, and interestcollected under this subsection for deposit into the business district retailers' occupation tax fund. On or before the 25th day of each calendarmonth, the Department shall prepare and certify to the Comptrollerthe disbmsement ofstated sums ofmoney to named municipalities from the business district retailers' occupation tax fund, the municipalities to be those from which retailers have paid taxes orpenalties under this subsection to the Department drning the second preceding calendar month. The amount to be paid to each municipality shall be the amount (not including credit memoranda) collected underthis subsection during the second preceding calendar month by the Depa1tment plus an amount the Department detennines is necessary to offset any amounts that were erroneouslypaidto a differelll taxing body. and not including an amountequal to the amount ofrefundsmade during the second precedingcalendar month bythe Department, less 2% ofthat amount, which shall be deposited into the Tax Compliance and Administration Fund and shall be used by the Department. subject to appropriation, to cover the costs ofthe Department in administering and enforcing the provisions ofthis subsection, on behalfofsuch municipality, and not including any amount that the Department detem1ines is necessary to offset any amounts that were payable to a different taxing bodybut ( were erroneously paid to the municipality. Within 10 days after receipt by the Comptroller ofthe disbursement certification to the municipalities provided for in this subsection to be given to the Comptroller by the Department, the Comptroller shall cause the orders to be drawn for the respective amounts in accordance with the directions contained in the certification. The proceeds ofthe tax paid to municipalities under this subsection shall be deposited into the Business District Tax Allocation Fundby the municipality. An ordinance orresolution imposing or discontinuing the tax underthis subsection oreffecting a change in the rate thereofshall either (i) be adopted and a certified copy thereoffiled with the Department on or before the first day ofApril, whereupon the Department, ifaJl otherrequirements ofthis subsection are met, shall proceed to administer and enforce this subsection as ofthe first day ofJuly next following the adoption and filing: or (ii) be adopted and a certifiedcopy thereoffiled with the Department on or before the first day ofOctober, whereupon, if all other requirements ofthis subsection are met, the Department shall proceed to administer and enforce this subsection as ofthe first day ofJanuary next following the adoption and filing. The Department ofReYenue shall not administer orenforce an ordinance imposing, discontinuing, or changing the rate ofthe tax under this subsection, until the municipality also provides, in the manner prescribed by the Department, the boundaries of the business district in such away that the Departmentcan determineby its address whether abusiness is located in the business district. The municipality must provide this boundaiy information to the Department on or before April I for administration and enforcement ofthe tax underthis subsectionby the Departmentbeginning on the following July l ai1d on orbefore October I for administration and enforcement ofthe tax under this subsection by the Department beginning on the following January I. The Department ofRevenue shall not administer or enforce any change made to the boundaries ofabusiness district until the municipality reports the boundary change to the Department in the manner prescribedbythe Department. The municipality must provide this boundary change infonnation to the Department on or before April ! for administration and enforcementby the Department ofthe changebeginning on the following July I and on orbefore October 

### 1for administration and enforcement by the Department ofthe changebeginning on the following January I. The retailers in the business district shall be responsible for chargingthe tax imposedunderthis subsection. 

### Ifaretailer is incorrectly included or excluded from the list ofthose required5111-74.3-S. Business district revenue and obligations, 65 ILCS 5!11·74.3·6

to collectthe tax underthis subsection.boththeDepartmentofRevenue andthe retailershallbe held harmless iftheyreasonably relied on information provided bythe municipality. A municipality that imposes the tax underthis subsection must submitto the Department ofRevenue any other information as the Departmentmay require for the administration and enforcement ofthe tax. When certifying the amount ofa monthly disbursement to a municipalityunder this subsection. the Department shall increase ordecrease the amountby an amount necessary to offset any misallocation ofprevious disbursements. The offset amount shall be the amount erroneously disbursed within the previous 6 months from the time a misallocation is discovered. Nothing in this subsection shall be construed to authorize the municipality to impose a tax upon the privilege ofengaging in any business which underthe Constitution ofthe United States may not be made the subject oftaxationby this State. Ifa tax is imposed under this subsection (b), a tax shall also be imposed tmder subsection (c) ofthis Section. (c) Jfa tax has been imposed under subsection (b), a Business District Service Occupation Tax shall also be imposed upon all personsengaged, in the business district. in the business ofmaking sales ofservice. who, as an incidentto makingthose sales of service, transfertangible personalpropertywithin the business district, eitherin the fom1 oftangiblepersonalpropertyor in the fom1 ofreal estate as an incident to a sale ofserYice. The tax shall be imposed at the same rate as the tax imposed in subsection (b) and shall not exceed 1 

### % ofthe selling price oftangible personal property so transferred within the business district, to be imposed only in 0.25% increments. The tax may not be imposed on food for human consumption that is to be consumed offthe premises where it is sold (other than alcoholic beYerages, soft drinks, and food that has been prepared for immediate consumption), prescription and nonprescription medicines, drugs, medical appliances, modifications to a motorvehicle for the purposeofrenderingit usable bya disabledperson. andinsulin.mine testing materials, syringes, and needles usedbydiabetics, for human use. ( The tax imposed under this subsection and all ciYil penaltiesthat may be assessed as an incident thereofshall be collected and enforced by the Department ofRevenue. The certificate ofregistration which is issued by the Department to a retailer under the Retailers' Occupation Tax Actorunderthe Service Occupation Tax Act shall permitsuch registrant toengage in a business which is taxable under any ordinance or resolution enacted pursuant to this subsection without registering separately with the Department under such ordinance or resolution or under this subsection. The Department of ReYetme shall ha\'e full power to administer and enforce this subsection; to collect all taxes and penalties due under this subsection; to dispose oftaxes and penalties so collected in the manm:rhereinafterprovided: and to determine all rights to creditmemoranda arising on account of the erroneous paymentoftaxorpenaltyunderthis subsection. Inthe administrationof, and compliancewith this subsection, the Department andpersons\vho are subjectto this subsection shallhavethe samerights, remedies, privileges, immunities, powers andduties, and be subjectto the sameconditions, restrictions, limitations, penalties, exclusions, exemptions, anddefinitions of te1ms and employthe same modes ofprocedure as are prescribed in Sections 2, 2a through 2d, 3 through 3-50 (in respectto all provisions therein otherthan the State rate oftax), 4 (exceptthatthe referenceto the State shall beto the business district), 5, 7, 8 (exceptthatthejurisdiction to whichthe tax shall be a debt to the extent indicated in thatSection 8 shallbe the municipality), 9 (exceptas to the disposition oftaxes andpenalties collected, and exceptthatthe rett1med merclmndise credit for this tax may notbetaken against any Statetax), 10, l], 12 (exceptthe referencethereinto Section 2b oftheRetailers' OccupationTaxAct), l 3 (except that anyreference to the State shall mean the municipality), the first paragraph ofSection 15, and Sections 16, 17, 18, 19 and 20 ofthe Service Occupation TaxAct and all provisions ofthe Unifom1 Penaltyand Interest Act, as fully as 

### ifthose provisions were set forth herein. Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their serviceman's tax liability hereunder by separately stating the tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax that servicemen are authorized to collect under the Service Use Tax Act, in accordance with such bracket schedules as the Department mayprescribe.5111·74.3-6. Business district revenue and obligations, 65 ILCS 5111-74.3·6

WhcneYer the Department determines that a refund should be made under this subsectionto a claimantinstead ofissuing credit memorandum, the Department shall notify the State Comptrnller,who shall causethi: orderto bedrawn forthe amountspecified, and to the person named. in such notification from the Department. Such refund shall be paid by the State Treasurer out ofthe business district retailers' occupation tax fund. The Department shall forthv,·ith pay o\"er to the StateTreasurer, ex-officio, as trnstee, all taxes, penalties, and interest col!ected under this subsection for deposit into the business district retailers' occupation tax fund. On or before the 25th day ofeach calendarmonth. the Department shall prepare and c<!Tlify to the Comptrollerthe disbursement ofstated sums ofmoney to named municipalities from the business district retailers' occupation tax fund, the municipalities to be those from which suppliers and servicemen have paid taxes or penalties under this subsection to the Department during the second preceding calendar month. The amount to bepaidlo eachmunicipality shall be the amount (not including creditmemoranda) collectedunderthis subsection during the secondpreceding calendarmonthby the Department, less 

### 2% ofthat amount, which shall be deposited into the Tax Compliance and Administration Fund and shall be used by the Department, subject to appropriation, to cover the costs ofthe Department in administering and enforcing the provisions ofthis subsection, and not including an amount equal to the amount ofrefunds made during the second preceding calendar month by the Department on behalfofsuch municipality. Within 10 days after receipt, by the Comptroller, ofthe disbursement certification to the municipalities, pro,·ided for in this subsection to be gfren to the Comptroller by the Department, the Comptroller shall cause the orders to be drawn for the respectiYe amounts in accordance with the directions contained in such certification. The proceeds ofthe tax paid to municipalities under this subsection shall be deposited into the Business District Tax Allocation Fund by the municipality. An ordinance or resolution imposing or discontinuing the tax under this subsection or effecting a change in the rate thereof shall either (i) be adopted and a ce1tified copy thereoffiled with the Department on orbefore the first day ofApril, whereupon the Department, ifall other requirements ofthis subsection are met, shall proceed to administer and enforce this subsection as ofthe first day ofJuly next following the adoption and filing; or {ii) be adopted and a certified copy thereoftiled \Vith the Department on or before the first day ofOctober, whereupon, ifall other conditions ofthis subsection are met, the Depat1ment ( shall proceed to administer and enforce this subsection as ofthe first day ofJanuary next following the adoption and tiling. The Department ofRevenue shall not administer or enforce an ordinance imposing, discontinuing, or changing the rate ofthe tax underthis subsection, until the municipality also proYides, ln the manner prescribed by the Department. the boundaries of the business district in such a waythat the Departmentcan determine by its address whetherabusiness is located in the business district. The municipality must proYide this boundary information to the Department on orbefore April I for administration and enforcement ofthe tax under this subsection by the Dcpm1mentbeginningon the following July I and on orbefore October I for administration and enforcement ofthe tax under this subsection by the Deparm1ent beginning on the following January 

### J. The Department ofReYenue shall not administer or enforce any change made to the boundaries ofabusiness district until the municipality reports the boundary changeto the Depai1ment in the mannerprescribedbythe Department.The municipality must provide this boundary change infomrntion to the Department on orbefore April I for administration and enforcement by the Depat1ment ofthe changebeginning on the following July I and on orbefore October I for administration and enforcement by the Departmentofthe changebeginning on the following January l. The retailers in the business district shall beresponsible for chargingthe tax imposed under this subsection. Ifaretaileris incorrectlyincluded orexcludedfrom the listofthose required to collectthe tax underthis subsection,boththe DepartmentofRewnueand the retailershall be heldharmless iftheyreasonably relied on infon11ation proYided by the municipality. A municipality that imposes the tax underthis subsection must submitto the Department ofRevenue any otherinformation as the Departmem may require for the administration and enforcement ofthe tax. Nothing in this subsection shall be constmed to authorize the municipality to impose a tax upon the privilege ofengaging in any business which under the Constitution ofthe United States may nol be made lhe subject oftaxation by the State. Ifa tax is imposed under this subsection ( c), a tax shall also be imposed under subsection (b) ofthis Section. 

# I

## I

(



### ( 5/11-74.3·6. Business district revenue and obligations, 65 1LCS 5111-74.3-6

(d) By ordinance. a municipalitythathas established abusiness district underthis DiYision 74.3 may impose an occupation tax upon all persons engaged in the business district in the business ofrenting, leasing, or letting rooms in a hotel, as defined in the !lo(el Operators' Occupation Tax Act, at a rate not to exceed !'Yo ofthe gross rental receipts from the renting, leasing, or letting ofhotel rooms within the business district, to be imposed only in 0.25% increments, excluding, however, from gross rental receipts the proceeds ofrenting, leasing, or letting to pemmnent residents ofa hotel, as defined in the Hotel Operators' Occupation Tax Act. and proceeds from the tax imposed under subsection (c) of Section 13 of the Metropolitan Pier and Exposition Authority Act. The tax imposed by the municipality under this subsection and all civil penalties that maybe assessed as an incident to that tax shall be collected and enforced by the municipalityimposing the tax. The municipality shall ha\'e full powerto administer and enforce this subsection.to collect all taxes and penalties due underthis subsection. to dispose oftaxes and penalties so collected in the manner pro,·idedin this subsection, and to detem1ine all rights to credit memoranda arising on account ofthe erroneous payment oftax orpenalty under this subsection. In the administration ofand compliance with this subsection. the municipality and persons who are subject to this subsection shall have the samerights, remedies, privileges, immunities, powers, and duties, shall be subject to the same conditions, restrictions, limitations, penalties, and definitions ofterms, and shall employ the same modes ofprocedure as are employed with respect to a tax adoptedby the municipality under Section 8-3-14 ofthis Code. Persons subject to any tax imposedunderthe authority granted in this subsectionmayreimburse themse]\'es fortheirtax liability forthat taxbyseparately statingthat tax as an additional charge, which charge maybe statedin combination, in a single amount, with State taxes imposed under the Hotel Operators' Occupation Tax AcL and with any other tax. Nothing in this subsection shall be constrned to authorize a municipality to impose a tax upon the privilege ofengaging in any business which 1111der the Constitution ofthe United States may not be made the subject oftaxation bythis State. The proceeds ofthe tax imposed under this subsection shall be deposited into the Business District Tax Allocation Fund. (e) Obligations issuedpursuant to subsection (14) ofSection 11-74.3-3 shall be retired in the mannerprovided in the ordinance authorizing the issuance ofthose obligationsbythe receipts oftaxes levied as autho1ized in subsections (12) and (13) ofSection 11-74.3-3. The ordinance shall pledge all ofthe amounts in and to be deposited in the Business District Tax Allocation Fund to the payment ofbusiness district project costs and obligations. Obligations issued pursuant to subsection (l-1) of Section 11-74.3~3 may be sold at public or pri\'ate sale at a price determined by the corporate authorities of the municipality and no referendum approval ofthe electors shall be required as a condition to the issuance ofthose obligations. The ordinance authorizing the obligations may require that the obligations contain a recital that they are issued pursuant to subsection (14) ofSection 11-74.3-3 and this recital shall be conclusi,·e evidence oftheir validity and ofthe regularity oftheir issuance. The corporate authorities ofthe municipality may also issue its obligations to refund, in whole or in part, obligations previously issued by the municipality under the authority ofthis Code, whether at or priorto maturity. Al! obligations issued pursuant to subsection (14) ofSection 11**~**74.3-3 shall not be regarded as indebtedness ofthe municipality issuing the obligations for the purpose ofany limitation imposed by law. (fl Whenbusiness district costs, including, without limitation, all municipal obligations financing business district project costs incurred under Section t 1-74.3-3 have been paid, any smplus funds then remaining in the Business District Tax Allocation Fund shall be distributed to the municipal treasurer for deposit into the municipal general corporate fund. Upon payment ofall business district project costs and retirement ofobligations, but in no event more than 23 years after the date ofadoption of the ordinance approving the business district development or redevelopment plan, the municipality shall adopl an ordinance immediately rescinding the taxes imposed pursuant to subsections (12) and (13) ofSection Il-74.3-3. CREDIT(S) Laws 1961, p. 576, § 11-74.3-6, added by P.A. 93- l053, §

### 5. eff. Jan. l, 

### 2005. Amended by P.A. 93-1 OK9,

# * 5, eff. \far. 7, 2005.

i!.::.,:5/11-74.3-6. Business district revenue and obligations, 65 ILCS 5111-74.3-6

HISTORICAL AI\D STATUTORY KOTES P.A. 93-1053 was the subjectofanAmendatmyVetobythegovernoronAugust27. 2004. TheAmendatmyVetowasoverridden on t\'oyember 16, 2004, the law was filed without signature of the go\'ernor on l\'ovember 19. 2004, and became effective January 

### I. 2005. P.A. 93-1089 incorporatedthe enactmentofthis section by P.A. 93-1053. LIBRARY REFERENCES

Municipal Corporations 962. Westlaw Topic No. 268. C.J.S. \!unicipal Corporations*{ 1739 to l742, 174X.
Current through P.A. 94-727 ofthe 2006 Reg. Sess.



## (5/11-74.3-6. Business distrlct revenue and obligations;

.... lL ST CH 65 §..,



### ( ·vvest's Smith-HurdIllinois Compiled StatutesAnnotated



### ( Chapter 6.:::;. l\1unkipalitics A.et 

### 5. Illinois Municipal Code 

### (Refs & 

### A.nnos) 

### .t\rtidc 11. 

### Corporate Powers and Functions 

### (Refs & 

### Annos)

Public Works. 

### Buildings and Property 

### Commercial Blight

### Areas

Dhision 74.3. 

### Business District Developmentand Rcdewlopment (Refs & Annos) 

### 65 ILCS 5/11-74.3-6 

### 5/11-74.3-6. Business 

### district 1-e,·enue and obligations; business districttax allocation fund EffectiYe: July 27, 2015 Currentness
§ 11-74.3-6. Business district reYenue and obligations; business district tax allocation fund.
(a) Ifthe corporate authorities ofa municipality have approved a business district plan, have designated a business district, and have elected to impose a tax by ordinance pursuant to subsection (10) or (11) ofSection 11-74.3-3, then each year after the date ofthe approval ofthe ordinance but tenninating upon the date all business district project costs and all obligations paying orreimbursing business district project costs, ifany, haYe been paid, but in no event later than the dissolution date, all amounts generatedbythe retailers' occupation tax and serviceoccupation tax shall be collected and the tax shall be enforcedby the Department ofRevenue in the same manner as all retailers' occupation taxes and seIYice occupation taxes imposed in the municipality imposing the tax and all amounts generated by the hotel operators' occupation tax shall be collected and the tax shall be enforced by the municipality in the same manner as all hotel operators' occupationtaxes imposed in the municipality imposingthetax. Thecorporate authorities ofthe municipalitysha!l deposit the proceeds ofthe taxes imposedundersubsections ( I0) and ( 11) ofSection 11-74.3-3 into a specialfund ofthe municipalitycalled the "[Nameof] BusinessDistrictTax Allocation Fund" for the purpose ofpaying orreimbursing business district project costs and obligations incurred in the payment ofthose costs.
(b) The corporate authorities ofa municipalitythat has designated abusiness distlictunderthis Lawmay, byordinance,imposea Business District Retailers' OccupationTax upon all persons engaged in the business ofsellingtangible personal property, other than an item oftangiblepersonalpropertytitled orregistered with an agency ofthis State's government, at retail in the business district at arate notto exceed I% ofthe gross receipts from the sales made in the course ofsuch business,to be imposed only in 0.25% increments. The tax may not be imposed on food for human consumption that is to be consumed offthe premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediateconsumption), prescription and nonprescription medicines, drugs, medical appliances, modifications to a motor vehicle for the purpose ofrendering it usable byaperson with a disability, and insulin, urine testing materials, syringes, and needles used by diabetics, forhumanuse. The tax imposed under this subsection and all civil penalties that maybe assessed as an incident thereofshall be collected and enforced by the Department ofRevenue. The certificate ofregistration that is issued by the Departmentto aretailer under the Retailers' Occupation Tax Act shall permit the retailer to engage in abusiness that is taxable under anyordinance orresolution enacted pursuant to this subsection without registering separately with the Department under such ordinance or resolution or under this subsection. The Department ofRevenue shall have full power to administer and enforce this subsection; to collect all taxesandpenalties dueunderthis subsectionin the mannerhereinafterprovided; andto determine all rights to credit memoranda ( arising on account ofthe erroneous payment oftax or penalty under this subsection. In the administration of, and compliance with, this subsection, the Department and persons who are subject to this subsection shall have the same rights, remedies,5111-74.3·6. Business district revenue and obligations;

.... IL ST CH 65 §

... privileges. immunities,powers and duties, andbe subject to the sameconditions, restrictions, limitations.penalties, exclusions, exemptions, and definitions ofterms and employthe same modes ofprocedure, as are prescribed in Sections 1, I a through Io, 2 through 2-65 (in respect to all provisions therein otherthan the Staterate oftax), 2c through 2h, 3 (except as to the disposition oftaxes and penalties collected), 4, 5. Sa, Sc, 5d, 5e, Sf, 5g, 5i, 5j, Sk. 51, 6, 6a. 6b, 6c, 7. 8, 9, 10, l 

### J, 12, 13, and 14 ofthe Retailers' Occupation Tax Act and all pro\·isions ofthe Uniforn1 Penalty and Interest Act, as fully as ifthose provisions were set forth herein.
Persons subject to any tax imposed under this subsection may reimburse themselves for their seller's tax liability under this subsectionby separately stating the tax as an additional charge. which chargemaybe stated in combination. in a single amount, with State taxes that sellers are required to collect under the lJse Tax Act, in accordance with such bracket schedules as the Department may prescribe. Whene\'er the Department determines that a refund should be made under this subsection to a claimant instead ofissuing a credit memorandum, the Department shall notif)' the State Comptroller. who shall cause the order to be drawn for the amount specified and to the person named in the notificationfrom the Department. The refund shall be paid by the State Treasurer out ofthe business district retailers' occupation tax fund.
The Departmentshall immediatelypayoYerto the StateTreasurer,ex officio, as trustee, all taxes, penalties, and interestcollected underthis subsection for deposit into the business disttict retailers' occupation tax fund.
As soon as possible after the first day of each month, beginning Janumy l, 2011. upon certification ofthe Department of Re\'entte, the Comptroller slmll ordertransferred, and the Treasurer shall transfer, to the STAR Bonds Revenue Fund the local sales tax increment, as defined in the Innovation Development and Economy Act. collected under this subsection during the secondpreceding calendarmonthfor sales within a STAR bond district.
Afterthe monthly transfer to the ST ARBonds RevenueFund, onorbefore the 25thdayofeach calendarmonth, the Department shall prepare and certif)'to the Comptrolkrthe disbursement ofstated sums ofmoneyto named municipalitiesfrom the business district retailers' occupationtax fund, the municipalities tobethose from which retailers havepaidtaxes orpenalties underthis subsectionto the Department during the second precedingcalendarmonth. The amounttobepaid to each municipality shall be the amount (not including credit memoranda) collected under this subsection during the second preceding calendarmonth by the Department plus an amount the Depa11ment determines is necessmy to offset any amounts that were erroneously paid to a different taxing body, and not including anamount equal to the amount ofrefunds made duringthe second preceding calendar month by the Oepmiment. less 2% ofthat amount, which shall be deposited into the Tax. Compliance and Administration Fund and shall be used by the Department, subject lo appropriation, to coverthe costs ofthe Department in administering and enforcing the provisions ofthis subsection, on behalfofsuch municipality, and not including anyamount that the Department determines is necessal)' to offset any amounts that \Vere payable to a different taxing body but were erroneously paid to the municipality, andnotincluding any amountsthat aretransferred to the STARBonds Revenue Fund.Within 10 days afterreceipt by the Comptroller ofthe disbursement certification to the municipalities provided for in this subsection to be given to the Comptroller by the Department, the Comptroller shall cause the orders to be drnwn for the respective amounts in accordance with the directions contained in the certification. The proceeds ofthe tax paid to municipalities underthis subsection shall be deposited into the Business DistrictTax Allocation Fund by the municipality.
An ordinance imposing ordiscontinuing the tax underthis subsection oreffecting a change in the rate thereofshall either (i) be adopted and a certified copy thereoffiled with the Department on orbefore the first day ofApril, whereupon the Depat1ment, ifall other requirements ofthis subsection are met, shall proceed to administer and enforce this subsection as ofthe first day ofJuly next following the adoption and filing; or (ii) be adopted and a certified copy thereoffiled with the Department on or before the first day ofOctober, whereupon, ifall other requirements ofthis subsection are met, the Department shall proceed to administer and enforce this subsection as ofthe first day ofJanuary next following the adoption and filing. 

### (5/11-74.3-6. Business district revenue and obligations;

.... JL ST CH 65 §

...
The Depa1tment ofRevenue shall not administer or enforce an ordinance imposing, discontinuing, or changing the rate ofthe tax under this subsection, until the municipality also provides. in the manner prescribed by the Department, the boundaries of the business district and each address in the business district in such a way that the Department can detennine by its address whether a business is located in the business dist1ict. The municipality must provide this boundary and address infonnation to the Department on or before April 1 for administration and enforcement ofthe tax under this subsection by the Department beginningon the followingJuly I and onorbefore October l for administration and enforcement ofthe tax underthis subsection by the Department beginning on the following January I. The Department of Revenue shall not administer or enforce any change made to the boundaries ofabusiness district or address change, addition, or deletion until the municipality reports the boundary change or address change, addition. or deletion to the Department in the manner prescribed bythe Department. The municipality must provide this boundary change infonnation or address change, addition, or deletion to the Depaiiment on or before April 1for administration and enforcement by the Department ofthe change beginning on the following July 

### J and on orbefore October I for administration and enforcement by the Department ofthe change beginning on the following January 1. The retailers in the business district shall be responsible for charging the tax imposed under this subsection. Ifa retailer is incorrectly included or excludedfrom the list ofthose required to collect the tax underthis subsection, boththe Department of ReYenue and the retailer shall be held harmless ifthey reasonably relied on infonnation provided by the municipality.
A municipalitythat imposes the tax underthis subsection must submit to the Department ofReYcnue any other information as the Department may require for the administration and enforcement ofthe tax. \\'hen certifying the amount ofa monthly disbursement to a municipality under this subsection. the Department shall increase or decrease the amount by an amount necessary to offset any misal\ocation ofprevious disbursements. The offset amount shall be the amount eJToneously disbursed within the previous 6 months from the time a misallocation is discovered. Nothing in this subsection shall be constmed to authorize the municipality to impose a tax upon the priYilege ofengaging in anybusiness which under the Constitution ofthe United States may notbe made the subject oftaxation by this State. 

### Ifa tax is imposed under this subsection (b). a tax shall also be imposed under subsection (c) ofthis Section.
(c) Ifa tax has been imposed under subsection (bl, a Business District Service Occupation Tax shall also be imposed upon all persons engaged, in the business district, in the business ofmaking sales ofservice, who, as an incident to making those sales of service, transfer tangible personal property withinthe business district, eitherin the form oftangible personalproperty orin the form ofreal estate as an incidentto a sale ofservice. The tax shall be imposed at the same rate as the tax imposed in subsection (b) and shal! not exceed I% ofthe selling price of tangible personal property so transferred within the business district, to be imposed only in 0.25% increments. The tax may not be imposed on food for human consumption that is to be consumed offthe premises where 

### it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption), prescription and nonprescription medicines, dmgs, medical appliances, modifications to a motor vehicle for the purpose ofrendering it usable by aperson with a disability. and insulin, urine testing materials, syringes, and needles used by diabetics, for human use. The tax imposed under this subsection and all civil penalties that maybe assessed as an incident thereofshallbe collected and enforced by the Department ofReYenue. The certificate ofregistration which is issued by the Department to a retailer under the Retailers' OccupationTax Actorunderthe Service OccupationTax Act shall permit such registrant to engage in a business wl1ich is taxable under any ordinance orresolution enacted pursuant to this subsection without registering separately with the Department under such ordinance or resolution or under this subsection. The Department of Revenue shall have full power lo administer and enforce this subsection; to collect all taxes and penalties due under this subsection; to dispose oftaxes and penalties so collectedin the mannerhereinafterprovided; and to detenninc a!I rights to credit memoranda arising on account of the erroneous payment oftax orpenaltyunderthis subsection. In the administrationof, and compliance with this subsection, the Department and persons who are subject to this subsection shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions, and definitions of511 t-74,3-6. Business district revenue and obligations;

..., IL ST CH 65 §

..
ten11S and employ the same modes ofprocedure as are prescribed in Sections 2, 2a through 2d. 3 through 3-50 (in respect to all provisionstherein otherthan the State rate oftax). 4 (except that the reference to the State shallbeto the business district), 5, 7, ( 8 (exceptthat thejurisdiction lo whichthetax shall be a debt to the extent indicated in that Section 8 shall be the municipality), 9 (except as to the disposition oftaxes and penalties collected, and except that the returned merchandise credit for this tax may not be taken against any State tax), I0, l l. 12 (except the reference therein to Section2b ofthe Retailers' OccupationTax Act). 13 (except that any reference to the State shall mean the municipality), the first paragraph ofSection 15. and Sections 16, 17, 18, 19 and 20 ofthe Service Occupation Tax Act and all provisions ofthe Unifonn Penalty and Interest Act, as folly as ifthose proYisions ·were set forth herein.
Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their ser\'iceman's tax \!ability hereunder by separately stating the tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax that servicemen arc authorized to collect under the Ser•:ice Use Tax Act. in accordance with such bracket schedules as the Department may prescribe. Whene\·erthe Departmentdetermines that a refund shouldbe madeunder this subsection to a claimant instead ofissuing credit memorandum, the Department shall notify the State Comptrol!cr. who shall causethe orderto bedrawn for the amount specified, andto the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out ofthe business district retailers' occupation tax fund.
The Department shall forthwith payover to the State Treasurer, ex-officio, as trustee, all taxes, penalties, and interest collected under this subsection for deposit into the business district retailers' occupation tax fund.
As soon as possible after the first day ofeach month. beginning January I, 2011, upon certification of the Department of Re\'enue. the Comptroller shall ordertransferred, and the Treasurer shall transfer, to the ST AR Bonds Revenue Fund the local sales tax increment, as defined in the Innovation Development and Economy Act, collected under this subsection during the second preceding calendar month for sales within a ST AR bond district
Aflerthe monthlytransferto the ST ARBondsRewnueFund, on orbeforethe 25thday ofeachcalendarmonth, theDepm1ment shallprepare andce1tifytothe Comptro!lerthe disbursementofstated sumsofmoneyto named municipalitiesfromthe business district retailers' occupation tax fund, the municipalities to be those from which suppliers and servicemen have paid taxes or penalties under this subsection to the Department during the second preceding calendar month. The amount to be paid to each municipality shall be the amount (not including credit memoranda) collected under this subsection during the second preceding calendar month by the Department, less 2'% ofthat amount, which shall be deposited into the Tax Compliance and Administration Fund and sha!l be used by the Department, subject to appropriation, to cover the costs ofthe Depaitmcnt in administering and enforcing the provisions ofthis subsection. and not including an amount equal to the amount of refimds made during the second preceding calendar month by the Department on behalfofsuch municipality, and not including any amounts that are transferred to the STAR Bonds Revenue Ftmd. Within 

### IO days after receipt, by the Comptroller, ofthe disbursementcertificationto the municipalities,providedforinthis subsectionto begivento theComptrollerbytheDepartment, the Comptroller shall cause the orders to be drawn for the respective amounts in accordance with the directions contained in such ce1tification. The proceeds ofthe tax paid to municipalities under this subsection shall be deposited into the Business District Tax AllocationFund by the municipality.
Anordinance imposing ordiscontinuingthe taxunderthis subsection or effecting a change inthe rate thereofshall either (i) be adopted and a certified copythereoffiled with the Department on orbefore the first day ofApril, whereupon the Department, ifall other requirements ofthis subsection are met, shall proceed to administer and enforce this subsection as ofthe first day ofJuly next following the adoption and filing; or (ii) be adopted and a certified copy thereoffiled with the Depmtment on or before the first day ofOctober, whereupon, ifall other conditions ofthis subsection are met, the Department shall proceed to administer and enforce this subsection as ofthe first day ofJanumynext following the adoption and filing. 

### (5/i 1-74.3-6. Business district revenue and obligations;

.... JL ST CH 65 §

...
The Department ofRevenue shall not administer or enforce an ordinance imposing, discontinuing, or changing the rate ofthe tax under this subsection. until the municipality also provides. in the manner prescribed by the Department, the boundaries of the business district in such a way that the Department can detem1ine by its address whether a business is located in the business district The municipality must provide this boundmy and address inforn1ation to the Department on or before April I for administration and enforcement ofthe tax under this subsection by the Department beginning on the following July I and on or before October l for administration and enforcement of the tax under this subsection by the Department beginning on the follo\ving January 1. The Department ofRevenue shall not administer or enforce any change made to the boundalies ofa business district or address change, addition, ordeletion until the municipality reports thebotmdarychange or address change, addition, or deletion to the Department in the manner prescribed by the Department. The municipality must proYide this boundary change information or address change. addition, or deletion to the Department on or before April l for administration andenforcementbythe Departmentofthe change begi1ming on the following July 1and onorbefore October 1 for administration and enforcement by the Department oflhe changebeginning on the following January I. The retailers in the business district shall be responsible for charging the tax imposed under this subsection. Ifa retailer is incorrectly included or excluded from thelist ofthose required to collectthetax underthis subsection, boththe DepartmentofRevenue and the retailer shall be held ham1less iftheyreasonably relied on infommtion providedby the municipality.
A municipality that imposes the tax under this subsection must submit to the Department ofRevenue any other infomrntion as the Department may require for the administration and enforcement ofthe tax. Nothing in this subsection shall be constrned to authorize the municipality to impose a tax upon the privilege ofengaging in anybusiness which under the Constitution ofthe United States may not be made the subject oftaxation by the State. lfa tax is imposed under this subsection (c), a tax shall a!so be imposed under subsection {b) ofthis Section.
( (d) By ordinance, a municipality thathas designated a business district underU1is Law may impose an occupation tax upon all persons engaged in the business district in the business ofrenting, leasing, or letting rooms in a hotel, as defined in the Hotel Operators' OccupationTaxAct, at a rate not to exceed 1% ofthe grossrental receipts from the renting, leasing, orletting ofhotel rooms within the business district, to be imposed only in 0.25% increments, excluding,however, from grossrental receipts the proceeds ofrenting, leasing. orlettingto permanentresidents ofa hotel, as definedin the Hotel Operators'OccupationTaxAct, and proceeds from the tax imposedunder subsection (c) ofSection 13 ofthe Metropolitan Pier and Exposition Authority Act. The tax imposedbythe municipalityunderthis subsection and all civil penalties that may be assessed as an incidentto that tax shall be collected and enforced by the municipality imposing the tax. The municipality shall have foll powerto administer and enforcethis subsection, to collect all taxes andpenaltiesdueunderthis subsection,to dispose oftaxes andpenalties so collected in the manner provided in this subsection, and to detem1i11e all rights to credit memoranda arising on account ofthe erroneous payment oftax orpenaltyunderthis subsection. In the administration ofand compliance with this subsection, the municipality andpersons who are subject to this subsection shall havethe same rights, remedies.privileges, immunities, powers, and duties, shall be subject to the same conditions, restrictions, limitations, penalties. and definitions oftem1S, and shall employ the same modes ofprocedure as are employedwith respect to a tax adopted by the nmnicipalityunder Section 8-3-I 4 ofthis Code.
Persons subjectto anytax imposedunderthe authority grantedin this subsectionmayreimburse themselves for theirtax liability forthat tax by separately statingthattax as an additional charge, which chargemaybestated in combination, in a single amount, with State taxes imposed underthe Hotel Operators' Occupation Tax Act, and with any other tax. Nothing in this subsection shall be constmcd to authorize a municipality to impose a tax upon the privilege ofengaging in any business which underthe Constih1tion ofthe United States may notbe made the subject oftaxation by this Stale.
The proceeds ofthe tax imposedunderthis subsection shall be deposited into the Business District Tax Allocation Fund.



### r).,..:5111·74.3-G. Business district revenue and obligations;

.... IL ST CH 65 §

...
(e) Obligations securedbythe BusinessDist1ict TaxAllocationFund maybe issued to provide forthepay111ent orreimbursement ofbusiness district project costs. Those obligations. when so issued, shall be retired in the mannerprovided in the ordinance authorizing the issuance ofthose obligations by the receipts oftaxes imposed pursuant to subsections (10) and (lJ) ofSection 11-74.3-3 and by other reYenue designated or pledged by the municipality. A municipality may in the ordinance pledge. for any period oftime up to and including the dissolution date, all or any part ofthe funds in and to be deposited in the Business District Tax Allocation Fund to thepayment ofbusiness district project costs and obligations. WheneYer a municipality pledges all of the funds to the credit of a business district tax allocation fund to secure obligations issued or to be issued to pay or reimburse business district project costs. the municipality may specifically provide that funds remaining to the credit ofsuch business district tax allocation fund after the payment ofsuch obligations shall be accounted for annuaily and shall be deemed to be

..surplus'' funds, and such "surplus,. funds shall be expended by the municipality for any business district project cost as approved in the business district plan. Whenever a municipality pledges less than all ofthe monies to the credit ofa business district tax allocation fund to secure obligations issued or to be issued to pay or reimburse business district project costs, the municipaJity shall provide that monies to the credit ofthe business district tax allocation fund and not subject to such pledge or otherwise encumbered or required for payment ofcontractual obligations for specific business district project costs shall be calculated annually and shall be deemed to be

..surplus·'funds, and such ··surplus" fonds shall be expended by the municipality for any business district project cost as approved in the business district plan.
No obligation issued pursuant to this Law and secured by a pledge ofall or any po11ion ofany reYenues received or to be received by the municipality from the imposition oftaxes pursuant to subsection (10) ofSection 11-74.3-3, shall be deemed to constit111e an economic incenti\'e agreement under Section 8-11-20, notwithstanding the fact that such pledge proYides for the sharing, rebate, or payment ofretailers' occupation taxes or service occupation taxes imposed pursuant to subsection (10) ofSection 11-74.3-3 and recciYed or to be received by the municipality from the de\·elopment orredevelopment ofproperties in the business district. 

### (

Without limiting the foregoing in this Section, the municipality may further secure obligations secured bythe business district ( tax allocation fund with a pledge. for a period not greaterthan theterm ofthe obligations and in any case not longer than the dissolution date, ofany pan or any combination ofthe following: (i) net revenues ofall or part ofany business district project: (ii} taxes levied or imposed by the municipality on any orall properly in the municipality. including, specifically, taxes levied or imposed by the municipality in a special service area pursuant to the Special Service Area Tax Law: (iii) the full faith and credit ofthe municipality; (iv) a mortgage on part or all ofthe business district project; or (v) any other taxes or anticipated receipts that the municipality may lawfully pledge. Such obligations may be issued in one or more series. bear such date or dates, become due at such time or times as therein provided, but in any case not later than (i) 

### 10 years after the date ofissue or (ii) the dissolution date, whichever is earlier. bear interestpayable at such intervals and at suchrate orrates as set forth therein, except as may be limitedbyapplicable Jaw, which rate orrates may be fixed or variable, be in such denominations, be in such fom1, either coupon. registered, orbook-entry, carry such con\'ersion, registration and exchange privileges, be subject to defeasance upon such ten11S, have such rank or priority, be executed in such manner, be payable in such medium or payment at such place orplaces within or without the State, make provision for a corporate trustee within or without the State with respect to such obligations, prescribe the rights, powers, and duties thereofto be exercised for the benefit ofthe municipality and the benefit ofthe owners ofsuch obligations. provide for the holding in trust, i1westment, and use ofmoneys, funds, and accounts held under an ordinance, provide for assignment of and direct payment ofthe moneysto pay such obligations ortobedeposited into suchfunds oraccounts directly to suchtrustee, be subject to such tem1s ofredemptionwith or without premium, and be sold at such price, all as the corporate authorities shall detennine. !\'o referendum approval ofthe electors shall be required as a condition to the issuance ofobligations pursuant to this Law except as provided in this Section.
In the event the municipality authorizes the issuance ofobligrtlions pursuant to the authority ofthis Law secured by the full faith and credit of !he municipality, or pledges ad va!orem taxes pursuant to this subsection, which obligations are other tlian obligations which may be issued under home rnk powers provided by Section 6 ofArticle VII ofthe Il!inois Constitution or



## ..

### ( 5/11-74.3-6. Business district revenue and obligations;

.... IL ST CH 65 §

...
which ad valorem taxes are other than ad valorem taxes which may be pledged under home rnle powers pro\'ided by Section 6 ofArticle \'II ofthe Illinois Constitution or which are levied in a special service area pursuant to the Special Service Area Tax Law, the ordinance authorizing the issuance ofthose obligations or pledging those taxes sha!l bepublished within 10 days after the ordinance has been adopted. in a newspaper haYing a general circulation within the municipality. The publicaiion of the ordinance shall be accompanied by a notice of(i) the specific number ofYoters required to sign a petition requesting the question ofthe issuance ofthe obligations or pledging such ad valorem taxes to be submittedtothe electors; (ii) the time within which the petition must be filed: and (iii) the date ofthe prospectiYe referendum. Tl1e municipal clerk shall proYide a petition form to any indiYidual requesting one. Ifno petition is filed with the municipal clerk. as hereinafter provided in this Section. within 21 days after the publication of the ordinance, the ordinance shall be in effect. However, if,vithinthat 21-dayperiod a petition is filed with the municipal clerk, signed by electors numbering not less than 15% ofthe number ofelectors voting for the mayoror president at the last general municipal election, asking that the question of issuing obligations using full faith and credit ofthe municipality as security for the cost ofpaying or reimbursing business district project costs, or ofpledging such ad va!orem taxes for the payment of those obligations, or both, be submitted to the electors ofthe municipality, the municipality shall not be authorized to issue obligations ofthe municipality using the full faith and credit ofthe municipality as security orpledging such ad \'alorem taxes for the payment ofthose obligations, or both. until the proposition has been submitted to and approved by a majority ofthe voters \'Oting on the proposition at a regularly scheduled election. The municipality shal! certify the proposition to the proper election authorities for submission in accordance ,vith the general election law.
The ordinance authorizing the obligations may pmvide thatthe obligations shall contain a recital that they are issued pursuant to this Law, which recital shall be conclush·e evidence oftheir validity and ofthe regularity oftheir issuance.
In the event the municipality authorizes issuance ofobligations pursuant to this Law secured bythe full faith and credit ofthe municipality, the ordinance authorizing the obligations may provide for the levy and collection ofa direct annual tax upon all taxable property within the municipality sufficient to pay tbe principal thereofand interest thereon as it matures, which levy may be in addition to and exclusiYe ofthe maximum ofall other taxes authorized to be levied by the municipality, which levy, however. shall be abated to the extent that monies from other sources are available for payment ofthe obligations and the municipality certifies the amount ofthose monies available to the county clerk.
A certified copy ofthe ordinance shall be filed with the county clerk ofeach county in which any portion ofthe municipality is situated. and shall constitutethe authorityfor the extension and collection ofthe taxes to be deposited in the business district tax allocation fund.
A municipality may also issue its obligations to refund, in whole or in part, obligations theretofore issued by the municipality under the authority ofthis Law, whether at or prior to maturity. However, the last maturity ofthe refunding obligations shall not be expressed to mature laterthan the dissolution date.
ln the event a municipality issues obligations under home mle powers or other legislative authority, the proceeds ofwhich are pledged lo pay or reimburse business district project costs. the municipality may, if ii has followed the procedures in confornmnce with this Law, retire those obligations from fonds in the business district tax allocation fund in amounts and in such manner as ifthose obligations had been issued pursuant to the provisions ofthis Law.
No obligations issued pursuant to this Law shall be regarded as indebtedness ofthe municipality issuing those obligations or any othertaxing district for the purpose ofany limitation imposedby law. Obligations issued pursuant to this Law shall not be subject to the provisions ofthe BondAuthorization Act.5/11·74.3·6. Business district revenue and obligations;

.... IL ST CH 65 §

...
(f) \\'hen business district project costs, including. without limitation, all obligations paying or reimbursing business district project costs have beenpaid, any surplus fonds then remaining in the Business District Tax Allocation

### Fund shall be distiibutcd to the municipal treasurer for deposit into the general corporate fund ofthe municipality. Upon payment ofall business district project costs and retirement ofall obligations paying or reimbursing business district project costs, but 

### in no event more than 23 years after the date ofadoption ofthe ordinance imposing taxes pursuant to subsection (10) or (11) ofSection 11-74.3-3. the municipality shall adopt an ordinance immediately rescinding the taxes imposed pursuant to subsection (

### IOJ or {11) of Section 11-74.3-3.

Credits Laws 1961, p. 576, § ll-74.3-6, added by P.A. 93-1053.} 5. cff Jan. l, 2005. Amended by P.A. 93-10t19.**~** 5

. .:ff. ;\lar. 7. 2005; P.A. 96-939.**~** 70, eff. June 24. 2010: P.A. %-1394.

# * 5. eff. July 29. 2010; P.A. 96-1555,**~** 5. eff .\larch 18. 20[ l; P.A. 9'-333,

# *IG5. eff Aug. 12, '.20! I: P.A. 09-143, § 370. dT. July 27, 2015.

65 i.L.C.S. 5/J 1-74.3-6, IL ST Cl-165 § 5/11-74.3-6 Cuffcnt through P.A. 99-487 ofthe 2015 Reg. Sess.



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