( 

( 

( 

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 of selling tangible personal property. The rate 

is imposed in .25% increments, and there is no maximum rate of tax. 

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 by municipalities after the State of Illinois 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% of gross 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 by reference.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 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 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 of service, and there is no maximum rate of 

tax. 

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 by municipalities after the State of Illinois 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% of gross 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 provision by reference. 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 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 in the 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 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 of selling tangible personal property. The rate 

is imposed in .25% increments, and there is a maximum rate of tax of 1 %. 

A portion of the 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 after the State of Illinois disburses it 

to them. However, the statute states that the municipality may use the proceeds of the 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% of gross receipts or $5 per 

calendar year, whichever is greater, to account for retailer collection costs.9 The Non-Home 

Rule Municipal Retailers' Occupation Tax Act incorporates this provision by reference. 10 

The Retailers' Occupation Tax includes a number of exemptions from tax. 11 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 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 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 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 of service, and there is a maximum rate of 

tax of 1%. 

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 by municipalities after the State of Illinois disburses it 

to them. The statute states that the tax should be used for expenditures on public infrastrncture 

or for property tax relief or municipal 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% of gross 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 provision by reference. 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 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 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 Rule Municipal Retailers' Occupation Tax; municipalities between 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 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 of selling 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 

over how the revenue from this tax is used by municipalities after the State of Illinois 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% of gross 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 by reference. 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 by reference into the Non-Home Rule Municipal Retailers' Occupation Tax 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 
The Non-Home Rule Municipal Service Occupation Tax; municipalities between 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 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 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 of service. 

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 by municipalities after the State of Illinois 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% of gross 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 

incorporated by reference 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 by home rule unit counties on 

persons engaged in the business of selling 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 by municipalities after the State of Illinois disburses it 

to them. 

The Retailers' Occupation Tax includes a number of exemptions 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 by reference into the Home Rule County Retailers' 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 of making 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 of service, and there is no maximum rate of tax. 

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 by municipalities after the State of Illinois 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% of gross 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 by reference.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 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 in the Home Rule County Service Occupation Tax Act.30 

27 35 ILCS 115/9. 2

R 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 of trails and parks 

throughout Madison, St. Clair, Monroe, Clinton, and Jersey Counties. The tax is imposed on all 

persons engaged in the business of selling tangible personal property at retail within the district. 

The tax is imposed at the rate of 1/10%. 

A portion of the 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 of the amount collected from each county is distributed by the MetroEast District to the county which collected it. At least 50% of this 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.31 

The Retailers' Occupation Tax includes a number of exemptions 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 by reference into 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% of gross receipts or $5 per 

calendar year, whichever is greater, to account for retailer collection costs.34 The Metro-East 

Park and Recreation District Act incorporates this provision by reference. 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 tangible personal property within the District incident to the sale of service. 

A portion of the 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 of the amount collected from each county is distributed by the MetroEast Distiict to the county which collected it. At least 50% of this 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% of gross receipts or $5 per 

calendar year, whichever is greater, to account for retailer collection costs. 37 The Metro East 

Park and Recreation District Act incorporates this provision by reference.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 in the 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 of the revenue is dedicated to the STAR bonds fund, 

but the remainder of the 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 of public highways, and passenger rail 

transportation. 

The Retailers' Occupation Tax includes a number of exemptions 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 by reference into the Special County Retailers' Occupation Tax for Public Safety, 

Public Facilities, or Transportation.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% of gross 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, or Transportation 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 of making sales of service, who, as an incident to making those sales of service, transfer 

tangible personal property within the county. 

The rate is imposed in .25% increments, and there is no maximum rate limit. A portion 

of the revenue is dedicated to the STAR bonds fund, but the remainder of the 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 of public highways, and passenger rail 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% of gross 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 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 in the Special County Service Occupation Tax for Public Safety, 

Public Facilities, or Transportation.4 

45 35 ILCS 115/9. 4

u 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 of fuel that is sold or used 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 of more than 1,000,000 inhabitants, for sale to or 

use by holders of certificates of public 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 or permit holders and used in their activities at such an airport. 

All money received 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 1990 on the privilege of 

being a receiver in this State of fuel 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 or permit 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. Prior to 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 of Illinois 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 of certain 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 of fuel sold). Aviation fuel sold to 

qualified air carriers is currently exempt from the tax. 

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 of exemptions from tax. 53 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 govermnental bodies. These exemptions are 

incorporated by reference 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% of gross 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 by reference. 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 of job opportunities, support of affordable housing oppmiunities, and 

( enhancement of quality of life 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)) 

If a 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 of making sales of service, who as an incident to making 

those sales of service, 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% of gross 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 by reference.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 of Illinois 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 by reference in the Rock Island 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 of job opportunities, support of affordable housing opportunities, and 

enhancement of quality oflife improvements.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 of Commissioners 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 the business of selling tangible personal 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% of gross 

receipts. The Department of Revenue collects and administers the tax. 

The Retailers' Occupation Tax. includes a number of exemptions 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 by reference into the 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% of gross 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 of making sales of service, 

who as an incident to making the sales of service, transfer tangible personal property incident to 

a sale of service. In emergency situations, the Board of Commissioners 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 the business of selling tangible personal 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% of gross receipts. The Department of Revenue 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 by reference in the 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% of gross receipts or $5 per ( 

calendar year, whichever is greater, to account for retailer collection costs.69 The Flood 

Prevention District Act incorporates this provision by reference. 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 Facility Retailers' Occupation Tax (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 of each district in a coW1ty. The revenue can be used to 

pay off existing debt which 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 be used 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 by reference into the County School Facility 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 by reference. 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)) 

If a county imposes a County School Facility Retailers' Occupation Tax, the county must 

also impose a County School Facility Service Occupation Tax at the same rate upon all persons 

engaged, in the county, in the business of making sales of service, who, as an incident to making 

those sales of service, transfer tangible personal property v.rithin the county incident to the sale of 

service. 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 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 of each district in a county. The revenue can be used to 

pay off existing debt which was incuffed 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 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 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 in the County School Facility Tax. 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% of gross receipts or $5 per 

calendar year, whichever is greater, to account for retailer collection costs.77 The County School 

Facility Tax incorporates this provision by reference. 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 of the Act is to enhance the ability 

of citizens to avail themselves of civic and cultural centers in the State of Illinois.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 

incorporated by reference 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% of gross receipts or $5 per 

calendar year, whichever is greater, to account for retailer collection costs.82 The Salem Civic 

Center Tax incorporates this provision by reference.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 of making 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 of civic and cultural centers in the State of Illinois.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 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 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 by reference. 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 

( 
( STAR Bond Retailers' Occupation Tax (50 ILCS 470/3 l(b)) 

The STAR Bond Retailers' Occupation Tax was enacted in 2010. The Department 

collects and administers the tax, but the proceeds of the 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 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 if such taxes are not designated as pledged STAR revenues by resolution 

or ordinm1ce. 

The tax is imposed upon all persons engaged in the business of selling 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 of exemptions 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 by reference 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% of gross receipts or SS per 

calendar year, whichever is greater, to account for retailer collection costs.91 The STAR Bonds 

Retailers' Occupation Tax incorporates this provision by 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 470/3 l(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 of making sales of service, 

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 of the tax are deposited into a special fund called the STAR Bonds Tax Allocation 

Fund for the purpose of paying ST AR Bonds project costs and obligations incmred 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 if such taxes are 

not designated as pledged STAR revenues by resolution 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 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 goverrunental bodies. These exemptions are 

incorporated by reference 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% of gross 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 by reference.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 of Revenue collects and administers the 

tax and retains a 2% administrative fee, but the proceeds of the tax are deposited into a special 

fund called the Business District Tax Allocation Fund for the purpose of paying or reimbursing 

business district project 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 by reference into 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% of gross receipts or $5 per 

calendar year, whichever is greater, to account for retailer collection costs. 99 The Business 

District Retailers' Occupation Tax incorporates this provision by reference. 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 be imposed at the same rate 

(.25% increments, not to exceed 1%). The Department of Revenue collects and administers the 

tax and retains a 2% administrative fee, but the proceeds of the tax are deposited into a special 

fund called the Business District Tax Allocation Fund for the purpose of paying or reimbursing 

business district project 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 in the 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% of gross receipts or $5 per 

calendar year, whichever is greater, to account for retailer collection costs. 103 The Business 

District Service Occupation Tax incorporates this provision by 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 of tax 

The following portions of taxes 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% of the 6.25% rate is not grandfathered) 

The Use Tax (l.25% of the 6.25% rate is not grandfathered) 

The Service Occupation Tax (l.25% of the 6.25% rate is not grandfathered) 

The Service Use Tax (1.25% of the 6.25% rate is not grandfathered) 

The Regional Transportation Authority Retailers' Occupation Tax in the counties of 

DuPage, Kane, Lake, McHenry, and Will (.5% of the . 75% rate is not grandfathered) 

The Regional Transportation Authority Service Occupation Tax in the counties of 

DuPage, Kane, Lake, McHenry, and Will (.5% of the .75% rate is not grandfathered) 

The Metro-East Mass Transit District Retailers' Occupation Tax in St. Clair County 

(.5% of the .75% rate is not grandfathered) 

The Metro-East Mass Transit District Service Occupation Tax in St. Clair County 

(.5% of the .75% rate is not 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 ILLlNOIS ANNOTATED STATUTES 

CHAP1ER 24. CITIES AND VILLAGES 

ILLINOIS MUNICIPAL CODE 

ARTICLE 8. FINANCE 

DIVISION 11. CERTAIN REVENUE TAXES 

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. If imposed, 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 of food for human consumption which is to be consumed off the 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 a home rule municipality pursuant to this Section and all civil penalties that may be assessed as 

an incident thereof shall be collected and enforced by the State Department of Revenue. The certificate of registration which is 

issued by the Department to a retailer under the ''Retailers' Occupation Tax Act", approved June 28, 1933, as amended, 1 shall 

pem1it such retailer to engage in a business which is taxable under any ordinance or resolution enacted pursuant to this Section 

without registering separately with the Department under such ordinance or resolution or under this Section. The Department 

shall have 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 manner hereinafter provided, and to determine all rights to credit memoranda, arising on 

account of the 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, inmmnitics, powers and 

duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions of terms, and employ the same 

modes of procedure, as arc prescribed in Sections I, 1 a, Id, J e, lf, Ii, lj, 2 2 (in respect to all provisions therein other than the 

State rate of tax), 2c, 3 3 ( except as to the disposition of taxes 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' Occupation Tax Act", as the same arenowormayhereafter 

be amended, 4 as folly as if provisions contained in those Sections of the "'Retailers' Occupation Tax Act" were set forth 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 of this Act. 

Persons subject to any tax imposed pursuant to the authority granted in this Section may reimburse themselves for their seller's 

tax liability hereunder by separately stating such tax as an additional charge, which charge may be stated in combination, in a 

single amount, with State tax which sellers are required to colicct under the "Use Tax Act", 5 pursuant to such bracket schedules 

as the Department may prescribe. 

Whenever the Department detennincs 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 lo be drawn for the amount specified, 

and to the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out of the 

home rnle municipal retailers' occupation tax fond. 

The Department shall fonhwith pay over to the State Treasnrer, ex officio, as trnstee, all taxes and penalties co!lected hereunder. 

On or before the 25th day of each calendar month, the Department shall prepare and certify to the Complrol!er the disbursement 

of stated sums of money to named municipalities, the municipalities to be those from which retailers have paid taxes or penalties 

hereunder to the Department during the second preceding calendar month. The amount to be paid to each municipality shall 

be the 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 a 
8-11-1. 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 of refunds made during the second preceding calendar 

month by the Department on behalf of such municipality. and not including any amount which the Department determines is 

necessary to offset any amounts which were payable to a different taxing body but were erroneously paid to the municipality. 

Within IO days after receipt, by the Comptroller. of the disbursement certification to the municipalities. provided for in this 

Section to be given to the Comptroller by the Department, the Comptroller shall cause the 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 calendar year. 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 of highest receipts). 

The distribution made in March 1988 and each year thereafter under this paragraph and the preceding paragraph shall be reduced 

by the amount allocated and disbursed under this paragraph in the preceding calendar year. The Department shall prepare and 

certify to lhe Comptroller for disbursement the allocations made in accordance with this paragraph. 

For the purpose of dete1mining the local governmental unit ·whose tax is applicable, a retail sale, by a producer of coal or other 

mineral mined in Illinois, is a sale at retail at the place where the coal or other mineral mined in ll!inois is extracted from the 

earth. This paragraph does not apply to coal or other mineral when it is delivered or shipped by the seller to the purchaser at a 

point outside Illinois so that the sak is exempt under the Federal Constitution as a sale in interstate or foreign commerce. 

Nothing in this Section shall be construed to authorize a municipality to impose a tax upon the privilege of engaging in any 

business which under the constitution 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 thereof shall be adopted 

and a certified copy thereof filed with the Department on or before the first day of June, whereupon the Department shall 

proceed to administer and enforce this Section as of the first day of September next following such adoption and filing. 

When certif)-'ing the amount of a monthly disbursement to a municipality under this Section, the Department shall increase or 

decrease such amount by an amount necessary to offset any misallocation ofpre\"ious disbursements. The offset amount shaU 

be the amount erroneously disbursed within the previous 6 months from the time a misallocation is discovered. 

Any unobligated balance remaining in the Municipal Retailers' Occupation Tax Fund on December 31, 1989, which fund was 

abolished by Public Act 85-1135, and all receipts of municipal tax as a result of audits of liability periods prior to January 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 of municipal tax as a result of an assessment not arising from an audit, for liability periods 

prior to January l, 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 of Public Act 85-1135, and on and after July I, 1990, all such receipts shall be distributed 

as provided in 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 or incorporated town, including an incorporated 

town which has superseded a civil township. 

This Section shall be known and may be cited as the "Home Rule Municipal Retailers' Occupation Tax Act". 

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) 

Amended by 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. March 4, 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. J L !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, ,·~1 443 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. 

HISTORICAL NOTES 

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 'Municipal Retailers' Occupation Tax Act' and the 'Municipal Service Occupation Tax Act' expresses 

the intent of the General Assembly, and declares that intent to ha\'e been, since the inception of those Acts, that persons subject 

to the municipal retailers' occupation tax and Municipal Service Occupation Tax may reimburse tl1emselves for their seller's or 

serviceman's tax liability under such taxes by separately stating the amount of such taxes as an additional charge." 

P.A. 77~279 inserted the tenth paragraph. 

P.A. 77-1024 inserted the sixth paragraph: inserted, "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," in the third sentence of the eighth 

paragraph; and substituted "balance" for "amount" following shortly after the 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 of the 77th General Assembly from amounts to be paid to the county. 

Section 2 of P.A. 77-1991 provided: 

"This amendatory Act is effective July I, 1972, or upon becoming a law, whichever happens later." 

As amended by P.A. 77-1991 the tenth paragraph read: 

"For the purpose of dete1111ining the local governmental unit whose tax is applicable, a retail sale, by a producer of coal or 

other mineral mined in Illinois, is a sale at retail at the place where the coat or other mineral mined in lllinois is extracted from 
8·11·1. 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 other mineral when it is delivered or shipped by the seller to the purchaser 

at a point outside Illinois so that the sale is exempt under the Federal Constitution as a sale in interstate or foreign commerce."' 

An amendment of this paragraph by P.A. 77-2829, § 9, was excised from that Act under the tenns of section 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 of P.A. 78-240 provided: 

"This amendatory Act of J 973 takes effect on the first day of the 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 of the 77th General Assembly, the latest Public Act was based on and incorporated all prior amendments to 

that Section made by earlier Public Acts of the 77th General Assembly. 

P.A. 78-1255 substituted ''State Comptroller·· for "Auditor of Public 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 of the law to 

resoh-e differences among the seYeral forms of certain Sections amended by more than one Act of the 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 of the first paragraph, "and shall 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, § 1 of P.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 

September 22, 1979, to implement Executive Order Number Three (1979). filed March 30, 1979 and effective October !, 1979, 

[ set fo11h at the beginning of ch. 127] involving the reorganization of certain agencies of the government of this state." 

For provisions of P.A. 81-1509, Art. V relating to effective dates and supersedure, see note following ch. 8, ~ 3 7-26. 

Article I, § I of P.A. 81-1550 provided: 

"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 of the 81 st General Assembly, through Public Act 

81-1509, which multiple action was not resolved by one of the Acts affecting the particular Section."' 

PA 82-683 inserted "(a-2), (a-3)" in the last sentence of the first paragraph. 

P.A. 82-1013, inserted "(f) and (g)" in the last sentence of the 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 of the first 

paragraph, folhwing "(a-3)", inserted a comma; in the first sentence of the sixth paragraph, substituted ·'order" for "'warrant"'; 

and in the last sentence of the eighth paragraph, substituted ··orders·· for "'warrants"'. 

P.A. 83-1253, in the eighth paragraph, in the third sentence, inserted "'plus an amount the Department deteimines is necessary 

to offset any amounts which were erroneously paid lo a different taxing bodf'; inserted ·'and not including any amount which the 

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 of Revenue must upon the request of the Municipal Clerk, City Council or Village Board of Trustees submit 

to a city. village or incoqmrated town a list of those persons who are registered with the Deparh11cnt to pay Retailers' Occupation 

tax within that governmental unit. This list shall contain only the names of persons who haYe paid the tax and not the amount 

of tax paid by such person." 

P.A. 83-1362, Art. rn, the Third General Assembly Combining Revisory 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 of Sections by two or more Public Acts of the 82nd General Assembly, which multiple action 

was not resolved by one of the Acts of the 82nd or 83rd Ge11ern! Assembly affecting the particular Section."' 

For provisions of P.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 of the eighth paragraph, substituted ·'J.6%" for '"2%"; and in the second sentence of the 

fifteenth paragraph, substituted "January 1, 1985"' for "'the effective date of this amendatory Act of 1984". 

Section 2 of P.A. 84-149, approved Aug. 12, 1985, provided: 

"'This Act takes eITect upon its becoming a law." 

P.A. 84-940 inserted the second, third and fourth paragraphs; and, in the fifteenth paragraph, in the second sentence, substituted 

''January l, 1985" for "'the effective date of this amendatory Act of 1984". 

Section 8 of P.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 year thereafter, to each municipality which received more than $500,000 in disbursements 

in the preceding calendar year. 

Section 3 of P.A. 84-1262, provided: 

"This Act takes effect January I, 1987."' 

Article ll of P.A. 84-1308, the First 84th General Assembly Combining Revisory Act, provides 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 of the 84th General Assembly, which multiple action was not resolved by one of the Acts of the 84th General 

Assembly affecting the particular Section and makes technical corrections in Acts amended by the 84th General Assembly. 

For provisions of P.A. 84-1308, Art. I,§ !, relating to intent and supersedure and Art. TV,§ 1, relating to effective dates and 

extension or revival 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 amendments by P.A. 84-149 and P.A. 84-940, in the first sentence of the 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 if approved by referendum as provided in Section 8-11-1.1 ". 

Section 2 of P.A. 84-1457, certified Jan. 6, !987, provided: 

"This Act takes effect January 1, 1987:' 

Article ll of P.A. 85-293. lhe Final 84th General Assembly Combining Revisory Act, provides for the nonsubstantive revision 

and renumbering of Sections of Acts which have been added or amended by more than one Act of the 84th General Assembly 

and the rerepeal of Sections both amended and repealed by Acts ofthe 84th General Assembly. 

For provisions of P.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 of P.A. 85-1135. provides: 

"'It is the intent of the 85th General Assembly that: 

"(a) the abolition of the authority of municipalities and counties to impose occupation and use taxes, and the corresponding 

concurrent increase of the state rate of such taxes with a corresponding distribution to such municipalities and counties pursuant 

to this amendatory Act of 1988, shall remain in full force and effect on a permanent basis; 

"(b) there shall be no reduction or redistribution as to proportional amount of such 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 of the rate or base of such taxes except as expressly provided in this amendatory Act of 1988; 

"(d) there sha[] be no limitation on the use of monies rcceiYed by such municipalities and counties except as expressly provided 

in this amendatory Act of 1988; 

"'{e) the distribution of occupation tax reYenues lo municipalities and counties shall remain on the basis of point of sale; 

"(f) tax revenues collected pursuant to the State use tax Acts on interstate transactions involving transfer of tangible personal 

property shall be distributed in accordance with the formula established by this amendatory Act of 1988 for State use taxes; and 

"(g) repeal of the statutory authority of municipalities and counties to impose local retailers' occupation taxes, use taxes, and 

service occupation taxes shall not be so construed as to impair the provisions of any 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 if reference 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 or Local 

Government Distributi\'e Fund, as the case may be." 

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 

prior to 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 of the 

Illinois Municipal Code after January 1, 1990, if such 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 of the second 

calendar month after this Act becomes a law. Article II takes effect January I, 1990." 

P.A. 85-1409 included exemption of§§ Ji and lj of the Retailers' Occupation Tax Act and included criteria under§ Ii of 

such Act. 

Section 7 of P.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, of P.A. 

86-820. the Second 1989 Re\"isory Act, approved Sept. 7, 1989, provide: 

''Sec. 1-1. This Act may be 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 of each amended Section indicates the sources in the Session Laws of lllinois that were 

used in the preparation of the text of that Section. The text of the Section included in this Act is intended to control over the 

conflicting Yersions found in the Public Acts included in the list of sources, but not necessarily over conflicting \'ersions of the 

Section to be found in Public Acts not included in the list of sources. The list of sources is not a part of the text of the Section.'' 

''Sec.1-1. This Article revises and, where appropriate, renumbers certain Sections of Acts which have been added or amended 

by more than one Act of the 85th General Assembly. It also rerepea!s ce1iain Sections that have been both amended and repealed 

by Acts of the 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 of this Article.'' 

"Sec. 4-1. This Act shall take effect upon becoming law. However, this Act does not accelerate the taking effect of proYisions 

derived from any Public Act that has an effecth·e date later than the date this Act takes effect, nor does this Act extend or revive 

any Act otherwise repealed." 

P.A. 86-528, in the first paragraph, inserted"! i, lj", "5k, Sf' and following "6" deleted "(except that credit memoranda 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 of P.A. 86-928, approved Sept. 18, 1989, provided: 

''Article 3 takes effect January \, 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 5f and inserted reference to § § 5h and 5i of the 

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 of Revenue 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 ( or the amendments to those Sections of the Retailers' Occupation Tax Act 

which it adopts through incorporation by reference) should be declared unconstitutional, the period from September I, 196 l, 

to a date 6 months after such final adjudication of invalidity shall not be counted in computing any period of limitations which 

would otherwise apply to the exercise of any right or the employment of any remedy available to the Depmtment of Revenue.'" 

1941-1960 Amendments. As enacted by Laws 1951. p. 2017, § I, the section provided; 

··The corpomte authorities of a 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 of not to exceed one-half of one per cent of 98 per cent of the gross 

receipts from such sales made in the course of such business. The municipal ordinance or resolution imposing such tax may 

provide for the assessment and collection of civi! penalties for the failure of a tax payer to comply with the provisions of said 

ordinance or resolution. The tax imposed by a municipality pursuant to this Section and all civil penalties that may be assessed 

as an incident thereof shall be collected and enforced by the State Department of Revenue. The Department shall have full 

power to administer and enforce this Section; to collect all taxes and penalties due hereunder; to dispose of taxes and penalties 

so collected in the manner hereinafter provided, and to determine all rights to credit memoranda, arising on account of the 

erroneous payment of tax or penalty hereunder. In the administration of, and compliance with, this Section, the Department 

and persons who are subject to 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 of tenns, and employ the same modes of 

procedure, as are prescribed in Sections 1, 2a, 2b. 3 (except as to the disposition of taxes 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 of hearings held by the Department and as to the venue 

I 

of proceedings for judicial review in the Circuit or Superior Courts). 12 Y2 and 13 of the Retailers' Occupation Tax Act, approved { 

June 28, l 933, as amended, as fully as if provisions contained in said Sections of the Retailers' Occupation Tax Act were set 

forth herein. Hearings conducted by the Depm1ment hereunder shall be held in the municipality on whose behalf the Department 

is administering this Section with respect to the questions to be determined at such hearing, and proceedings for judicial review 

shall be commenced on the Circuit or Superior Court of the county in which such municipality is situated. The Department 

shall forthwith pay over to the State Treasurer, ex-officio, as trustee. all taxes and penalties collected hereunder. On or before 

the Thi11ieth day of each calendar month, the Department shall notify the State Treasurer, in writing, to disburse stated sums 

of money to named municipalities, said municipalities to be those from which retailers have paid taxes or penalties hereunder 

to the Depai1ment during the preceding calendar month. 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%) of such amount, which sum shall be retained by the State Treasurer to cover the costs incurred by the Department in 

administering and enforcing the provisions of this Section, as provided herein, and said sum, so retained by the State Treasurer, 

shall be paid by him into the General ReYenue Fund of the State Treasmy. Within ten (10) days after receipt, by the State 

Treasurer. of the disbursement notification, provided for herein to be given to the State Treasurer by the Department, the State 

Treasurer shall make disbursements in accordance with the directions contained in such notification. 

·'Nothing in this section shall be constmed to authorize a municipality to impose a tax upon the privilege of engaging in any 

business which under the constitution of the United States may not be made the subject of taxation by this State. 

'"No ordinance providing for the imposition of the tax authorized under this Section shall be effective until the ordinance has 

been submitted to the electors of that municipality at a general election and approved by the majority of the electors voting upon 

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 of an ordinance or resolution by the corporate authorities of that municipality, providing 

for the submission of the question of authorizing the imposition of the tax to the electors of that municipality and specifying the 

rate of tax to be imposed but not to exceed one half of one per cent (0.5%) of 98 per cent of the gross receipts from such sales { 

made in the course of such business. An election held within the entire area included within the corporate limits of a specified 
( 

8-11-1. Home Rule Municipal Retailers' Occupation Tax Act, S.H.A. ch. 24118-11-1 

municipality at which officers of that municipality, or of any township, school district. or park district are to be elected or at 

which the officers of the county, in which that municipality is located. or of the State ofl!linois, are to be nomination or elected 

shall be a "general election·· within the meaning ofthis section. 

"The election officers. who ha\'e charge of the preparation of the ballots. the giving of the notices of election, and the counting, 

canvassing, and making of the returns of the ballots, shall take all necessary steps and do all necessary sets to submit the question 

of the imposition ofthe tax to a vote as herein proYidcd. They shall canrnss and certify the results ofthis election, as provided 

by law 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 or rc,olu1ion) 

upon persons engaged i11 

the business of sct!ing No 

tMgiblc personal properly al retail in such municipali1y? 

"If a majority of the votes cast on lhe question are in favor of authorizing the imposition of the tax the corporate authorities 

may levy the tax at any time following the detem1ination and certification of the result of the election upon that question. 

"The corporate authorities of any municipality which levies a tax authorized by this Section shall forthwith notify the 

Department of Revenue in \\Ti ting of the levy of such tax by such municipality whereupon the Department of Revenue shall 

proceed to administer and enforce this Section on behalf of such municipality." 

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 of each calendar month. 

Laws 1959, p. 570, § 1, modified the first paragraph by inserting the exception clause following the reference to § 6 of the 

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 of the Retailers' Occupation Tax Act, and by decreasing the amount allowed tlie department for the administrative expenses 

from 6% to 4% of the 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' occupation tax. 

REFERENCES 

CROSS REFERENCES 

1990 Pocket Part Cross References 

Business district redevelopment projects, tax increment allocation financing, see ch. 24, 111-74.4-Sa. 

County waler commissions, sec ch. 111/, ~: 254. 

Pledge of funds to De,·elopment Finance Authority, see ch. 48, •: 850.0?zl 5. 

Refunds for payments of retailers' occupation tax paid on amount of federal automobile excise tax later refunded, see ch. 127. 

~ 39dl. 

196:?. Main Volume Cross References 

Dcpmiment ofrevenue, enforcement of ordinances imposed under this section, sec State Government, ch. 127, § 39b]. 

Effective date of ordinances, municipalities under commission fonn of government, see § 4-5-21 of this chapter. 

Publication of ordinance imposing municipal retailers' occupation tax, necessity, see § 1-2-4 of this chapter. 

"Selling price" within use tax act, see Revenue, ch. 120, § 439.2. 

LAW REVIEW COMMENT AlUES 

1990 Pocket Part Law Review Commentaries 

Legislative de,·e!opments: Ilome rule taxation. 1973 Law Fomm 508. 

Municipal revenue powers in the context of constitutional 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!. Bar J. l 12. 

Survey of Illinois law for 1954-1955. 1956, 34 Chicago-Kent L.Rev. 107. 

Licenses 5Ya, 6. 

C.J.S. Licenses§ 10. 

In general 1/2. 

Collection of taxes 5 

Deficiencies 4 .......... . 

L!BR.A.R Y 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 or collection of taxes 5 

Legislative intent li4 

Nonresident sellers 6 

Refund of taxes 2 

Repeals I ................ . 

Rolling stock exemption 3 

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Validity J/8 .. . ..................... enter p 

#. 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 of Pawnee 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 of the revenue it collects on behalf of counties 

and municipalities which impose various local sales taxes do not violate the constitutional requirement of uniform taxation on 

theory that part oflocal tax re\'enue collected by the state is used to benefit areas in state which have not imposed similar taxes, 

where all taxpayers within municipality or county that does impose local sales tax are subject to the same taxes and the same 

collection procedures, and there is no misrepresentation of the purpose for whicl1 the tax revenues are being raised. Village of 

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 of taxes" applies only to local units of government and does not prohibit state from withholding, as a fee a percentage 

of the funds it collects on behalf of the units of local government. and thus was not Yiolaied by this paragraph and other statutes 

pem1itting the state to keep hvo percent of the revenue it col!ects on behalf of counties and municipalities which impose various 

local sales taxes. Id. 

Bracket schedule established by department of revenue in use tax rule is not void on themy that department lacked authority 

to establish such a schedule. Johnson v. Marshal! Field & Co,, 1972, 8 Ill.App.3d 937, 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 of the Retailers' Occupation Tax Act (ch. 120, ._. 440 et 

seq.) requiring estimated tax payments by end of month in which taxes were collected for most major taxpayers, into the other 

nine Sales and Use Tax Acts (ch. 120, ii 439.1 et seq.) it appeared that legislature had 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 of funds on only those two taxes. Jewel Companies, Inc. v. Department of Revenue, 

1978, 15 Ill.Dec. 950, 58 Ill.App.3d 393, 374 l\'.E.2d 733. 

In view of fact that retailers were acting in compliance with clear legislative intent that burden of municipal retailers' occupation 

tax be passed on to customers, retailers were not guilty of deceptive 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 of the 

tax to customers by separately stating such tax and which declared it had been legislative intent to give such authority could 

properly be 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 of statu(es by inYolved administratiYe bodies such as Department of Revenue's rnles for adding of Municipal 

Retailers' Occupation Ta, by retailers to selling price and for detcnnining tax liability of retailers, constitute an infonned 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 of municipal retailers' occupation tax on the former and county retailers' occupation taxes on the latter, is reasonable 

in that county provides many of the 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's passage of 1971 amendment to Municipal Retailers' Occupation Tax Act, which allows persons subject to 

this tax to reimburse themse!Yes for their seller's tax liability by separately stating such tax as an additional charge, is reflective 

oflegislatiYe intent of the 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 of Pawnee v. Johnson, 1984. 83 

Ill.Dec. 219. I 03 Ill.2d 41 l, 469 N.E.2d 1365. 

Municipalities were not entitled to interest on funds formerly held for them by Treasurer, to the extent that funds out of·which 

they sought reimbursement had already been transfen-ed to the General Revenue Fund, since any refund would then have to 

come out of General Revenue Fund, which would be an impem1issible money judgment against the State, as there was no longer 

an identifiable source from which municipalities could be reimbursed. Village of Pawnee v. Johnson, 1984, 83 Ill.Dec. 219, 

103 I11.2d 411, 469 N.E.2d l 365. 

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 

under Municipal Retailers' Occupation Tax Act ch. 14 i: 8-l l-I on sales to independent dealer concerning which company could 

not produce a resale certificate. C\'cn if company could prove that the sales to the independent dealer \Vere for resale and were 

not taxable retail sales. Tri-America Oil Co.\·. Department of Revenue, 1984. 80 Ill.Dec. 93. 102 Ill.2d 234. 464 N.E.2d l 076. 

No wilfulness or malice was alleged in municipalities' complaint arguing that state officials' failure to credit them with interest 

income earned on municipal retailers' occupation tax receipts constituted breach of fidnciary duty, and thus no cause of action 

existed against state officials for their past failure to make such required interest payments to municipalities. Vil!age of Pawnee 

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 of receipts. Village of Pawnee v. Johnson, App. 4 Dist. 1983, 74 Ill.Dec. 481, I 19 Il!.App.3d 

164, 455 N.E.2d 1105, affinned 83 lll.Dec. 219, J 03 Ill.2d 411, 469 N .E.2d 1365. 

Chapter 120, '1: 441 c requiring that 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 (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 of Revenue, 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 I 076. 

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

Chapter 120, ,: 44 lc requiring a purchaser who is a reseller of tangible personal property in such a way that such resales are 

not taxable under the Retailers' Occupation Tax Act(,: 440 et seq. of this chapter) to apply for a resale 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 seller and 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 subsequent paragraphs). Sangamo Club v. Department of Revenue, 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 of counties and 

municipalities which impose various local sales taxes shall be retained by the State Treasurer to cover the costs incurred. state 

can retain the entire two percent even if this amount exceeds the cost of collecting the local sales taxes. Village of Oak Lawn 

v. Zagel, 1981, 51 Ill.Dec. 743, 96 Jll.App.3d 254, 42 ! N.E.2d 251. 

Retailers' Occupation Tax Act ( ch. 120, ~· 440 et seq.), which imposes a tax on persons engaged in business of selling 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 of its individual sales, i.e .. did not obtain 

the purchaser's registration number, his resale number, or a "ce1iificate of resale"; it is not the sale of property but the business 

of selling it for use or consumption which is the subject of the tax. Dearborn \:Vholesa!e Grocers, Inc. v. Whitler, 1980, 45 

ill.Dec. 892, 82 Ill.2d 471, 413 N.E.2d 370. 

Action wherein city and unincorporated association of state municipalities sought declaratory judgment that bill, which reduced 

Department ofRevenue's service charge for collection of municipal retailers' occupation taxes and municipal service occupation 

taxes from four to two percent of taxes collected, became effective on date governor's veto was overridden and sought to have 

Director of Department of Revenue. state treasurer and state comptroller ordered to re fond excess ser,ice charge to plaintiff 

was not action against state 1.vhich could only have been brought in the court of claims. City of Springfield v. Allphin, 1978, 

23 Ill.Dec. 516, 74 Jll.2d I J 7, 384 N.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 of taxes 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 being made party in any court except as provided in Court of Claims Act, did not bar 

suit in which plaintiffs sought declaratory judgment that bill reducing Department of Revenue's service charge for collection of 

municipal retailers' occupation taxes and municipal service occupation taxes became effective on date veto ,vas overridden and 

sought a refund of excess service charge, in light of fact 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 of law. City of Springfield 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, 384 N.E.2d 310. 

Fact that pmtion of service charge, which was in excess of the amount that Department ofRevenue was entitled to charge for 

collecting municipal retailers' occupation taxes and municipal service occupation taxes for ce1iain plaintiffs, had bee11 deposited 

in general revenue fund rather than segregated did not preclude a refund of the excess service charge to plaintiffs. Id. 

Where only explanation of Department of Revenue's correction of taxpayer's retailers' occupation tax retums was testimony of 

auditor that corrected reh1ms were based on computer printout based upon taxpayer's sales tax returns, monthly filing of rch1rns, 

and receipts, reviewing court could not determine whether Department had made corrections according to its "best judgment 

r l":·.t 
8-11-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 authority to pass on burden of tax imposed under Municipal Retailers' Occupation Tax Act prior to amendment by 

PA 77-131 which explicitly gave retailers 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 credit purchaser was received by them, 

state did nol extend credit to retailers, in violation of provision of Const. Art. 8, § 1, that public funds shall be used for only 

public purposes, by allowing retailers to include sales taxes in cash sale price of goods to which finance charge was applied. 

Rose v. Sears, Roebuck & Co., 1973, 12 ll!.App.3d 929, 299 N.E.2d 95. 

Retailers of consumer goods are not obligated to pay over the amount of sales taxes until they are collected from the purchaser. 

Id. 

Gsers of cigarettes purchased from state retailers arc subject to the cigarette use tax and do not merely bear economic burden 

of cigarette retailers' privilege tax: cigarette use tax does not apply only to out~of-state purchases. Dick's Vending Service, Inc. 

Y. Department of Revenue, 1972, 53 ll1.2d 375, 293 N.E.2d 129. 

Portion of gross receipts representing collection of cigarette use tax was not ·'consideration" received by retailer for sale of 

cigarettes for purposes of computing occupation tax and retailer was entitled to credit for payments of occupation tax based 

on inclusion of cigarette 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 pay by separately stating amount of tax as 

an additional charge in combination with the use tax, which they were required to collect. and in light of Uniform Deceptive 

Trade Practices Act ( ch. J 21 :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 of fad that purchasers of tangible persona! property admittedly paid municipal retailers' occupation tax when it was 

charged as a condition of sale, 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 

Department of Revenue made it clear that national banks were not subject to taxes imposed by those acts for their purchase and 

use of tangible personal property, legal incidence of those 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 if suppliers of tangible personal property did 

in fact pass such taxes on to banks in the form of a price increase. First N"at. Bank of Maywood v. Jones, 1971, 48 Il!.2d 282. 

269 KE.2d 494. 

'.Vfotion to vacate judgment which affirmed assessment of Retailers' Occupation Tax, ch. 120,,: 440 et seq .. and Municipal 

Retailers' Occupation Tax and to remand cause to Department of Revenue made more than thirty days after original judgment 

and more than thirty days following filing of mandate following reversal must be deemed to have been brought under ch. 11 0, 

,1 72, authorizing relief from judgments. Shuman v. Department of Revenue, ! 967, 38 I11.2d 571, 232 N.E.2d 732. 

Signature of director of revenue was unnecessary to make final the purportedly final assessments by department of revenue 

under Retailers' Occupation Tax (ch. 120, ~ 440 et seq.) and Municipal Retailers' Occupation Tax Acts. Schuman v. Department 

of Revenue, 1966, 35 Ill.2d 425, 220 N".E.2d 430, appeal after remand 232 N.E.2d 732, 38 Ill.2d 571. 

!957 Amendment ofch. 120, ~ 440, purporting to bring within Retailers' Occupation Tax Act those who engage in business of 

repairing tangible personalty for others was unconstitutional, and, therefore, assessment of tax agai11st railroad for dollar amount 

( 
( 

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

of repairs made by railroad 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 of automobiles sold by dealer located in .city to nonresidents occurred just across boundmy line of 

city, but all other necessary incidents to sales transactions occurred inside city. sales were incident of dealer's business that was 

being conducted in city and were subject to city retailers' occupation tax imposed upon act of engaging in business of selling 

tangible personal property at retail in municipality. Metnick \'. Department of Revenue. 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 of over 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 of taxes 

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 of allegation of claims to be more specific. Illini i\fotor Co. v. Illinois Dept. of Revenue, App. 4 Dist.I 985, 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 of automobiles because they were for exempt charitable purposes was 

proper. in that documentation of sales for which charitable exemption was claimed was insufficient. Illini Motor Co. v. Illinois 

Dept. of Revenue, App. 4 Dist.1985, 94 lll.Dec. 448, 139 Ill.App.3d 441, 488 N.E.2d 274. 

Department of ReYenuc's determination that taxpayer was not entitled to tax refund by virtue of ''rolling stock" exemption 

on sale of instrnment 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 of rail yard, and it was not propetty which in its ordinary use 

is taken from one part of the line to another, nor goods which are mobile and which are of a type normally used in more lhan 

one jurisdiction. LeTourneau R.R. Services, Inc. v. Department of Revenue, 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 of interest income earned on municipal retailers' occupation lax receipts 

which had already been placed by state treasurer in general revenue fund, but award of undistributed and future interest was 

appropriate because such award did not result in money judgment against state. Village of Pawnee v. Johnson, App. 4 Dist.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 of municipal retailer's occupation taxes to price of automobile sold by it so as to pass 

burden of tax on to vendecs and which did not unconditionally refund amount of taxes to vendees though il offered to do so 

in event refund was granted was not entitled to refund of erroneously 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 under rolling stock exemption of retailers' occupation tax [S.1-LA. ch. 24, ~ 

8-11-1; ch. 120, ~ 44 l 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, 

only transferred trailers on and off railroad cars. Mi-Jack Products Inc. v. Depmtment of Revenue, 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 of taxpayers' seven fumiture stores supported Department of Revenue's 

assessment of tax deficiencies under this act, in absence of evidence 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 of Revenue's assessment of tax deficiencies arising from three taxpayers' alleged ownership of se\·en furniture 

stores were valid even without evidence that two of the taxpayers actually owned the stores, where taxpayers both received 

notices of liability and notices of administrative 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 of taxes 

Municipality did not have right to bring action against retailer to recover sales taxes and fines allegedly due under this act. 

Village of Niles v. K-Mart Corp., App. 1 Dist.1987, 110 Ill.Dec. 526, 158 Ill.App.3d 521. 5! 1 N.E.2<l 703. 

6. Nonresident sellers 

Regulations pro\'iding for imposition of retailers' 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 of Revenue regulations governing imposition of retail 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 

county where they were stored was engaged in the business of retail selling for purposes of the 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. I 989, 134 Ill.Dec. 313, 186 Ill.App.3d 402, 542 N.E.2d 492. 

Regulations imposing municipal retailers' occupational tax and regional transit authority retailers' 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 Statutes Annotated 

Chapter 65. Municipalities 

Act 5. Illinois Municipal Code (Refs & Annos) 

Article 8. Finance 

Dhision 11. Certain Rewnue Taxes 

65 ILCS 5/8-11-1 

Formerly cited as IL ST CH 24 "iS-11-1 

5/8-11-1. Home Rule 11unicipal Retailers' Occupation Tax Act 

Effectiw: July 31, 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 of tangible 

persona! property titled or registered with an agency of this State's government, at retail in the municipality on the gross receipts 

from these sales made in the course of such business. If imposed, the tax shall only be imposed in 1/4% increments. On and 

after September I, 1991. this additional tax may not be imposed on the sales of food for human consumption that is to be 

consumed off the premises where it is sold (other than alcoholic beverages, soft drinks and food that has been prepared for 

immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances and insulin, urine testing 

materials. syringes and needles used by diabetics. The tax imposed by a home rnle municipality under this Section and all civil 

penalties that may be assessed as an incident of the tax shall be collected and enforced by the State Department of Revenue. The 

certificate of registration 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 and enforce this Section; to collect all taxes and penalties due hereunder; to dispose of taxes and 

penalties so collected in the manner hereinafter provided; and to detem1ine all rights to credit memoranda arising on account of 

the erroneous payment of tax or penalty hereunder. In the administration of, and compliance with, this Section the Department 

and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities, powers and duties, and 

be subject to the same conditions, restrictions, limitations, penalties and definitions of tem1s, and employ the same modes of 

procedure, as are prescribed in Sections l, I a, 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 of tax), 2c, 3 3 (except as to the disposition of taxes 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 of the Retailers' Occupation Tax Act 4 and Section 3-7 of 

the Unifom1 Penalty and Interest Act, 5 as fully as if those prO\·isions were set forth herein. 

No tax may be imposed by a home rule municipality under this Section unless the municipality also imposes a tax at the same 

rate under Section 8-11-5 of this Act. 

Persons subject lo any tax imposed under the authority granted in this Section may reimburse themselves for their seller's tax 

liability hereunder by separately 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 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 
5!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 of the 

home rule municipal retailers' occupation tax fund. 

The Department shall immediately pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected 

hereunder. 

As soon as possible after the first day of each month, beginning January l, 2011, upon certification of the Department of 

Revenue. the Comptroller shall order transfetTed, and the Treasurer shall transfer, to the STAR Bonds Revenue Fund the local 

sales tax increment as defined in the Jnno\'ation Development and Economy Act, collected under this Section during the second 

preceding calendar month for sales ,vithin a STAR bond 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 of stated smns of money 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 hereunder during the second preceding calendar month by the Department plus an amount the Depariment detern1ines 

is necessary to offset any amounts that were erroneously paid to a different taxing body, and not including an amount equal to 

the amount ofrefi.mds made during the second preceding calendar month by the Department on behalf of such municipality, 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 of the disbursement ceriification to the municipalities 

provided for in this Section to be given to the Comptroller by the Department, the Comptroller shall cause the orders to be 

drawn for the 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, if requested, be made within 10 days after January 14, 1991. and in November of 1991 and each 

year thereafter, to each municipality that received more than S500,000 during the preceding fiscal year, (July I through June 30) 

,vhethcr collected by the 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 of their 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, l 989 through June 30, 1990. 

The allocation within 10 days after January !4. 1991, shall be in an amount equal to the monthly average of these amounts, 

excluding the 2 months ofhighest receipts. The monthly average for the period of July 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 of July 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 of highest receipts. The monthly average for each subsequent 

period of July 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 of highest 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 of July I through June 30. The Department shall prepare and certify to 

the Comptroller for disbursement the allocations made in accordance with this paragraph. 

For the purpose of determining the local governmental unit whose tax is applicable, a retail sale by a producer of coal or other 

mineral mined in Illinois is a sale at retail at the place where the coal or other mineral mined in 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 of engaging in any 

business which under the Constitution of the lJnited States may not be made the subject of taxation by this State. 
( 

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

An ordinance or resolution imposing or discontinuing a tax hereunder or effecting a change in the rate thereof shall be adopted 

and a certified copy thereof filed with the Department on or before the first day of June, whereupon the Department shall proceed 

to administer and enforce this Section as of the first day of September next following the adoption and filing. Beginning .January 

1, 1992, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate thereof shall be 

adopted and a ce1tified copy thereof filed with the Department on or before the first day of July, whereupon the Department sha[I 

proceed to administer and enforce this Section as of the first day of October next following 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 thereof filed with the Department on or before the first day of October, whereupon the 

Department shall proceed to administer and enforce this Section as of the first day of January next following the adoption and 

filing. However, a municipality located in a county with a population in excess of3,000,000 that elected to become a home mle 

unit at the general primal)' election in 1994 may adopt an ordinance or resolution imposing the tax under this Section and file a 

certified copy of the ordinance or resolution with the Department on or before July 1, 1994. The Department shall then proceed 

to administer and enforce this Section as of October!, 1994. Beginning Aprill, 1998, an ordinance or resolution imposing or 

discontinuing the tax hereunder or effecting a change in the rate thereof shall either (i) be adopted and a certified copy thereof 

filed with the Department on or before the first day of April. whereupon the Departme:nt shall proceed to administer and enforce 

this Section as of the first day of July next following the adoption and filing; or (ii) be adopted and a certified copy thereof filed 

\,·ith the Department on or before the first day of October, whereupon the Depaitment shall proceed to administer and enforce 

this Section as of the first day of January next fo!IO\ving the adoption and filing. 

\Vhen certifying the amount of a monthly disbursement to a municipality under this Section, the Department shall increase or 

decrease the amount by an amount necessary to offset any misallocation of previous disbursements. The offset amount shall be 

the amount erroneously disbursed within the previous 6 months from the time a misallocation is 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 of municipal tax as a result of audits of liability periods prior to January I, 

1990, shall be paid into the Local Govemment Tax Fund for distribution as provided by this Section prior to the enactment of 

Public Act 85-1135. All receipts of municipal tax as a result ofan assessment not arising from an audit, for liability periods 

prior to January 1, 1990, shall be paid into the Local Government Tax Fund for distribution before July 1, 1990, as provided by 

this Section prior to the enactment of Public Act 85-1135; and on and after July l, 1990, all such receipts shall be distributed 

as provided in Section 6z-18 of the 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, l 980; 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 

J 982: 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- l 4 75, Art. 5. § 5-6, eff. Jan. l 0. 199 I; P.A. 86-1481, Art. 3. § l. eff Jan. l 4. 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 J 0; P.A. 99-217, § 25. eff. July 31. 20 l 5. 

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

Notes of Decisions (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 l 05. 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 of the 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 Statutes Annotated 

Chapter 65. Municipalities 

Act 5. Illinois Municipal Code (Refs & Annos) 

Article 8. Finance 

Dhision 11. Certain ReYenue Taxes 

65 ILCS 5/8-11-5 

Formerly cited as IL ST CH 24 ~-11-5 

5/8-11-5. Home Rule ~1unicipal Serdce Occupation Tax Act 

Effective: June 24, 2010 

Currentness 

~ 8-J 1-5. Home Rule Municipal Service Occupation Tax Act. The corporate authorities ofa home mle municipality may impose 

a tax upon all persons engaged, in such municipality, in the business of making sales of service at the same rate of tax imposed 

pursuant to Section 8-11-1, of the selling price of all tangible personal property transferred by such servicemen either in the 

form of tangible personal property or in the form of real estate as an incident to a sale of service. If imposed, such tax shall 

only be imposed in 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 off the premises where it is sold ( other than alcoholic beverages, soft 

drinks and food which has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, 

medical appliances and insulin, urine testing materials, syringes and needles used by diabetics. The tax imposed by a home rule 

municipality pursuant to this Section and all civil penalties that may be assessed as an incident thereof shall be collected and 

( enforced by the State Depariment of ReYenne. The certificate of registration which is issued by the Department to a retailer 

under the Retailers' Occupation Tax Act I or under the Service Occupation Tax Act 2 shall permit such registrant to engage in a 

business which is taxable under any ordinance or resolution enacted pursuant to this Section without registering separately with 

the Department under such ordinance or resolution or under this Section. The Department shall have full power to administer 

and enforce this Section; to collect all taxes and penalties due hereunder; to dispose of taxes and penalties so collected in the 

manner hereinafter provided, and to detem1ine all rights to credit memoranda arising on account of the erroneous payment 

of tax or penalty hereunder. In the administration of, and compliance with, this Section the Department and persons who are 

subject to this Section shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the 

san1e conditions, restrictions, !imitations, penalties and definitions of terms, and employ the same modes of procedure, as are 

prescribed in Sections la-I, 2, 2a, 3 through 3-50.' (in respect to all provisions therein other than the State rate of tax), 4 4 

(except that the reference to the State shall be to the taxing municipality), 5, 7, 8 5 (except that the jurisdiction to which the 

tax shall be a debt to the extent indicated in that Section 8 shall be the taxing municipality), 9 6 (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 ( except tl1e reference therein to Section 2b of the Retailers' Occupation Tax Acl) 8 , 13 9 ( except that 

any reference to the State shall mean the taxing municipality), the first paragraph of Section 15, 16, 17 IO {except that credit 

memoranda issued hereunder may not be used to discharge any State tax liability), 18, 19 and 20 of the Service Occupation Tax 

Act 11 and Section 3-7 of the Unifonn Penalty and Interest Act, 12 as fully as if those 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 of this Act. 

Persons subject to any tax imposed pursuant to the authority granted in this Section may reimburse themselves for their 

serviceman's tax liability hereunder by separately stating such tax as an additional cliarge, which charge may be stated in 

i·lelt 
518-11-5. 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 of issuing credit 

memorandum, the Department shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified, 

and to the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out of the 

home rule municipal retailers' occupation tax fond. 

The Department shall forth\\·ith 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 Jamiary !, 2011, upon certification of the Department of 

ReYenue, the Comptroller shall order transferred, and the Treasmer shail transfer, to the STAR Bonds Revenue Fund the local 

sales tax increment, as defined in the Innovation Development and Economy Act, collected under this Section during the second 

preceding calendar month for sales within a ST AR bond district. 

After the monthly transfer to the STAR Bonds Revenue Fund, on or before the 25th day of each calendar month, the 

Department shall prepare and certify to the Comptroller the disbursement of stated sums of money to named municipalities, 

the municipalities to be those from ,vhich suppliers and servicemen have paid taxes or penalties 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 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 ST AR Bonds Revenue Fund. Within 10 days after 

receipt, by the Comptroller. of the disbursement certification to the municipalities, provided for in this, Section to be given to 

the Comptroller by the Department, the Comptroller shall cause the orders to be drawn for the respective amounts in accordance 

with the directions contained in such certification. 

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 

year thereafter, to each municipality that received more than $500,000 during the preceding fiscal year, (July I through June 30) 

whether collected by the municipality or disbursed by the Department as required by this Section. Within 10 days after January 

14, 1991, participating municipalities shall notify the Department in writing of their intent to participate. In addition, for the 

initial distribution, participating municipalities shall certify to the Department the amounts collected by the municipality for 

each month under its home rule occupation and service occupation tax during the period July I, 1989 through June 30, 1990. The 

allocation within IO days after January 14, J 991, shall be in an amount equal to the monthly average of these amounts, excluding 

the 2 months of highest receipts. Monthly average for the period of July 1, 1990 through June 30, 1991 will be detennined 

as follows: the amounts collected by the municipality under its home rnle occupation and service occupation tax during the 

period of July 1, 1990 through September 30, 1990, plus amounts collected by the Department and paid to such municipality 

through June 30, l 991, excluding the 2 months of highest receipts. The monthly average for each subsequent period of July 

1 through June 30 shall be an amount equal to the monthly distribution made to each such municipality under the preceding 

paragraph during this period, excluding the 2 months of highest receipts. The distribution made in November 1991 and each 

year thereafter under this paragraph and the preceding paragraph sha!l be reduced by the amount allocated and disbursed under 

this paragraph in the preceding period of July 1 through June 30. The Department shall prepare and ce1tify 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 of engaging 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 thereof shal! be adopted 

and a certified copy thereof filed with the Department on or before the first day of June, whereupon the 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 of the 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 

thereof shall be adopted and a certified copy thereof filed with the Department on or before the first day of July, whereupon 

the Department shall proceed to administer and enforce this Section as of the first day of October next following such adoption 

and filing. Beginning January 1. 1993, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a 

change in the rate thereof shall be adopted and a certified copy thereoffiled with the Department on or before the first day of 

October. whereupon the Department shall proceed to administer and enforce this Section as of the frrst day of January 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 of the ordinance or resolution with the Department on or before July 1, 1994. 

The Department shall then proceed to administer and enforce this Section as of October!, 1994. Beginning April 1, 1998, an 

ordinance or resolution imposing or discontinuing the ta.-.;: hereunder or effecting a change in the rate thereof shall either (i) be 

adopted and a certified copy thereof filed with the Dt':partment on or before the first day of April, whereupon the Department 

shall proceed to administer and enforce this Section as of the first day of July next following the adoption and filing; or (ii) be 

adopted and a certified copy thereof filed with the Department on or before the first day of October, whereupon the Department 

shall proceed to administer and enforce this Section as of the first day of January next following the adoption and filing. 

Any unobligated balance remaining in the ~unicipal Retailers' Occupation Tax Fund on December 31, !989, which fund was 

abolished by Public Act 85~1135, and all receipts of municipal tax as a result of audits of liability periods prior to January 1, 

1990, shall be paid into the Local Government Tax Fund, for distribution as provided by this Section prior to the enactment of 

Public Act 85-1135. A!! receipts of nmnicipal tax as a result of an assessment 1101 arising from an audit, for liability periods 

prior to January 1, 1990, shall be paid into the Local Government Tax Fund for distribution before July 1, 1990, as provided by 

this Section prior to the enactment of Public Act 85-1135, and on and after July I, 1990, all such receipts shall be distributed 

as provided in Section 6z-18 of the 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 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. 1731, § l, eff. July 10, 1961. Amended by Laws 1963, p. 56, § I, eff. 

March 8, 1963; Laws J 963, 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. 81-13 79, § 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. I 991. ch. 24. •· 8- l l-5. 

;\;oks of Decisions (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 of the 2015 Reg. Sess. 

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

i lt:·: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 Statutes Annotated 

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 Scnicc Occupation Tax.Act 

Effective: June 24, 2010 

Currentness 

§ 8-11-5. Home Rule Municipal Sen·ice Occupation Tax Act. The corporate authorities of a home rule municipality may impose 

a tax upon all persons engaged, in such municipality, in the business of making sales of service at the same rate of tax imposed 

pursuant to Section 8-11-1, of the selling price of all tangible personal property transferred by such servicemen either in the 

form of tangible personal property or in the fom1 ofreal estate as an incident to a sale of service. If imposed, such tax shall 

only be imposed in 1

/4 % increments. On and after September I, 1991, this additional tax may not be imposed on the sales of 

food for human consumption which is to be cons\1med off the premises where it is sold { other than alcoholic beverages. soft 

drinks and food which has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, 

medical appliances and insulin, urine testing materials, syringes and needles used by diabetics. The tax imposed by a home rule 

municipality pursuant to this Section and all civil penalties that may be assessed as an incident thereof shall be collected and 

( enforced by the State Department of Revenue. The certificate of registration which is issued by the Department to a retailer 

under the Retailers' Occupation Tax Act I or under the Service Occupation Tax Act 2 shall pennit such registrant to engage in a 

business which is taxable under any ordinance or resolution enacted pursuant to this Section without registering separately with 

the Department under such ordinance or resolution or under this Section. The Department shall have full power to administer 

and enforce this Section: to collect all taxes and penalties due hereunder; to dispose of taxes and penalties so collected in the 

manner hereinafter provided, and to detem1ine all rights to credit memoranda arising on account of the erroneous payment 

of tax or penalty hereunder. 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 of terms, and employ the same modes of procedure, 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 of tax), 4 4 

(except that the reference to the State shall be to the taxing municipality), 5, 7, 8 5 (except that the jurisdiction to which the 

tax shall be a debt to the extent indicated in that Section 8 shall be the taxingmtmicipality), 9 6 (except as to the disposition of 

taxes and penalties collected, and except that the remmed merchandise credit for this municipal tax may not be taken against 

any State tax), JO, 11, 12 7 (except the reference therein to Section 2b of the Retailers' Occupation Tax Act) S , 13 9 ( except that 

any reference to the State shall mean the taxing municipality), the first paragraph of Section 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 of the Service Occupation Tax 

Act 11 and Section 3-7 of the 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 of this Act. 

Persons subject to any tax imposed pursuant to the authority granted in this Section may reimburse themselves for their 

serviceman's tax liability hereunder by separately stating such tax as an additional charge, which charge may be stated in 
5!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 of issuing credit 

memorandum, the Department slial! notify the State Comptroller. who shall cause the order to be drawn for the amount specified, 

and to the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out of the 

home rule municipal retailers' occupation tax fund. 

The Depa11ment shall fo11hwith 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 I, 2011, upon certification of the Depa1iment of 

Re,·enue, the Comptroller shall order transfeffcd, and the Treasurer shall transfer, to the ST AR Bonds Re\'enue Fund the local 

sales tax increment, as defined in the Innovation Development and Economy Act. collected under this Section during the second 

preceding calendar month for sales within a STAR bond district. 

After the monthly transfer to the STAR Bonds Revenue Fund, on or before the 25th day of each calendar month, the 

Department shall prepare and certify to the Comptroller the disbursement of stated sums of money to named municipalities, 

the municipalities to be those from which suppliers and servicemen have paid taxes or penalties hereunder to the Department 

during the second preceding calendar month. The amount to be paid to each municipality sha!J be the amount (not including 

credit memoranda) collected hereunder during the second preceding calendar month by the Department. and not including an 

amount equal to the amount of refunds made during the second preceding calendar month by the Department on behalf of 

such municipality, and not including any amounts that are transferred to the ST AR Bonds Revenue Fund. Within IO days after 

receipt. by the Comptroller, of the disbursement certification to the municipalities, provided for in this, Section to be given to 

the Comptroller by the Department, the Comptroller shall cause the orders to be drawn for the respective amounts in accordance 

with the directions contained in such ceitification. 

In addition to the disbursement required by the preceding paragraph and in order to mitigate delays caused by distribution 

procedures, an allocation shall, if requested, be made within l O days after January 14, l 991, and in November of 1991 and each 

year thereafter. to each municipality that received more than $500,000 during the preceding fiscal year, {July l through June 30) 

whether collected by the municipality or disbursed by the Department as required by this Section. Within 10 days a Her January 

14, 199 l, participating municipalities shall notify the Department in writing of their intent to participate. In addition, for the 

initial distribution, participating municipalities shall ce11ify to the Department the amounts collected by the municipality for 

each month under its home rule occupation and service occupation tax during the period July 1, l 989 through June 30, 1990. The 

allocation within 10 days after January 14, 1991, shall be in an amount equal to the monthly a\'erage of these amounts, excluding 

the 2 months of highest receipts. Monthly average for the period of July 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 of July 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 of highest receipts. The monthly average for each subsequent period of July 

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 preceding paragraph shall be reduced by the amount allocated and disbursed under 

this paragraph in the preceding period of July 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 of engaging in any 

business which tmder the constitution ofthe United States may not be made the subject of taxation by this State. 

An ordinance or resolution imposing or discontinuing a tax hereunder or effecting a change in the rate thereof shall be adopted 

and a certified copy thereof filed with the Department on or before the first day ofJune, whereupon the Department shall proceed 

( 
( 

( 

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 of the first day of September 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 thereof filed with the Department on or before the first day of July, whereupon 

the Department shall proceed to administer mid enforce this Section as of the first day of October next following 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 thereof filed with the Department on or before the first day of 

October, whereupon the Department shall proceed to administer and enforce this Section as of the first day of January next 

following such adoption and filing. However. a municipality located in a county with a population in excess of 3,000,000 that 

elected to become a home rnle unit at the general primary election in 1994 may adopt an ordinance or resolution imposing the 

tax under this Section and file a certified copy of the ordinance or resolution with the Department on or before July 1, 1994. 

The Department shall then proceed to administer and enforce this Section as of October l, 1994. Beginning April 1, I 998, an 

ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate thereof shall either (i) be 

adopted and a certified copy thereof filed with the Department on or before the first day of April, whereupon the Department 

shall proceed to administer and enforce this Section as of the first day of July next following the adoption and filing; or (ii) be 

adopted and a certified copy thereof filed with the Department on or before the first day of October, whereupon the Department 

shall proceed to administer and enforce this Section as of the firs! day of January next following the adoption and filing. 

Any unobligated balance remaining in the Municipal Retailers' Occupation Tax Fund on December 31, 1989, which fund was 

abolished by Public Act 85-1135. and all receipts of municipal tax as a result of audits of liability periods prior to January 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 of municipal tax as a result of an assessment not arising from an audit, for liability periods 

prior to January 1, 1990, shall be paid into the Local Government Tax Fund for distribution before July I, 1990, as provided by 

this Section prior to the enactment of Public Act 85-1135, and on and after July l, 1990, all such receipts shall be distributed 

as provided in Section 6z-18 of the State Finance Act. 1

~ 

As used in this Section, "municipal" and "municipality" means a city, village or incorporated 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. I 963: Laws 1963, p. 1686, § I, eff. July 16, 1963; Laws 1967, p. 1112, § Leff. July 1, 1967; Laws 1967, p. J 793, § 

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. 3 I, l 976; 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 of Deci~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 ILLINOIS ANNOTATED STATUTES 

CHAPTER 24. CITIES AND VILLAGES 

ILLINOIS MUNICIPAL CODE 

ARTICLE 8. FINANCE 

DIVISION 11. CERTAIN REVENUE TAXES 

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 

inhabitants may impose a tax upon all persons engaged in the business of selling tangible personal property, other than on an item 

of tangible personal property which is titled and registered by an agency of this State's Government, at retail in the municipality 

at the rate of Y2 of l % for expenditure on public infrastructure as defined in Section 8-11-1.2 if approved by referendum as 

provided in Section 8-11-1 .!, of the gross receipts from such sales made in the course of such business. The tax imposed by 

a municipality pursuant to this Section and all civil penalties that may be assessed as an incident thereof shall be coUected and 

enforced by the State Department of Revenue. The ce1iificate of registration 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 or resolution enacted pursuant to this Section without registering separ.i.tely with 

the Department under such ordinance or resolution or under this Section. The Department shall have foll power to administer 

and enforce this Section; lo collect all taxes and penalties due hereunder: to dispose of taxes and penalties so collected in the 

manner hereinafter provided, and to detennine all rights to credit memoranda, arising on account of the erroneous payment 

of tax 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 of procedure, as are 

prescribed in Sections l, I a, I a-1, Id, I e, l f, 1 i, Jj, 2 2 (in respect to all provisions therein other than the State rate of tax). 2c, 

3 3 (except as to the disposition of taxes 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:: of the "Retailers' Occupation Tax Act", as the same are now or may hereafter be amended, 4 as 

fully as ifprovisions contained in those Sections of the ·'Retailers' Occupation Tax Act" were set forth herein. 

Persons subject to any tax imposed pursuant to the authority granted in this Section may reimburse themselves for their seller's 

tax liability hereunder by separately stating such tax as an additional charge, which charge may be stated in combination, in a 

single amount, with State tax which sellers are required to collect under the "Use Tax Act", 5 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 of issuing a credit 

memorandum, the Department shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified, 

and to the person named, in such notification from the Depru1ment. Such refund shall be paid by the State Treasurer out of the 

non-home rnle municipal retailers' occupation tax fund. 

The Department shall forthwith pay over to the State Treasurer, ex officio. as trustee, all taxes and penalties collected hereunder. 

On or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the disbursement 

of stated sums of money to named municipalities, the municipalities to be those from which retailers have paid taxes or penalties 

hereunder to the Department during the second preceding calendar month. The amount to be paid to each municipality shall 

be the amount (not including credit memoranda) collected hereunder during the second preceding calendar month by the 

Department plus an amount the Department 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 of re fonds made during the second preceding calendar 

month by the Department on behalf of such municipality, and not including any amount which the Department determines is 

necessary to offset any amounts which were payable to a different taxing body but were en-oneously paid to the municipality. 

Within 10 days after receipt, by the Comptroller, of the 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 Comptroller by the Department, the Comptroller shall cause the orders to be drawn for the respective 

amounts in accordance with the directions contained in such certification. 

For the purpose of determining the local goYernmental unit whose tax is applicable, a retail sale, by a producer of coal 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 or other mineral when it is delivered or shipped by the seller to the purchaser at a 

point outside Illinois so that the sale is exempt under the Federal Constitution as a sale in interstate or foreign commerce. 

Nothing in this Section shall be construed to authorize a municipality to impose a tax upon the prh·iiege of engaging in any 

business which under the constitution of the United States may not be made the subject of taxation by this State. 

When certifying the amount of a monthly disbursement to a municipality under this Section, the Department shall increase or 

decrease such amount by an amount necessary to offset any 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. 

As used in this Section, '"Municipal" and ··Municipality" means a city, Yillage or incorporated town. including an incorporated 

town which has superseded a civil township. 

This Section shall be known and may be cited as the "Non-Home Rule 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 Pocket Pan Historical and Statutory Notes 

For legislative intent, affect and effective date of P.A. 85-1135, see note following ch. 24, ~ 8-11- !. 

P.A. 86-928, in the first paragraph, inserted in the first sentence, "'other than on an item of tangible persona! property which is 

titled and registered by an agency of this State's Government'\ and in the last sentence, inserted "1 a-1 ", "1 i, Ij'', "'5k, Sf' and 

following "'taxes and penalties collected·', deleted "'and except for the provision allowing retailers a deduction from the tax to 

cover certain costs"; in the third paragraph, inserted "non-home mle"; and inserted "Non-Home Rule"' in the cite. 

REFEREKCES 

LIBRARY REFERENCES 

l 990 Pocket Part Library References 

Words and Phrases (Pem1. Ed.) 

1,,,J,.;1b,,,,n.-.a1 
518-11-1.3. Non-Home Rule Municipal Retailers' Occupation ... , !L ST CH 65 § 518·11-1.3 

\Vest's Smith-Hurd Illinois Compiled Statutes Annotated 

Chapter 65. Municipalities 

Act 5. Illinois Municipal Code (Refs & Annos) 

Article 8. Finance 

Dh'ision 11. Certain ReYenue Taxes 

65 ILCS 5/8-11-1.3 

Fom1erly cited as IL ST CH 24 13-11-1.3 

5/8-11-1.3. ~on-Home Rule )1unicipal Retailers' Occupation Tax Act 

EffoctiYe: July 31, 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 of selling tangible personal property. other than on 

an item of tangible personal property which is tilled and registered by an agency of this State's Gm·emment, at retail in the 

municipality for expenditure on public infrastructure or for property tax relief or both as defined in Section 8- l 1-J .2 if approved 

by referendum as provided in Section 8-11-1.1, of the gross receipts from such sales made in the course of such business. lfthe 

tax is approved by referendum on or after July 14. 20 IO (the effective date of Public Act 96-1057), the corporate authorities of a 

non-home rnle municipality may, until December 31, 2020, use the proceeds of the tax for expenditure on municipal operations, 

in addition to or in lieu of any expenditure on public infrastructure or for property tax relief. The tax imposed may not be more 

than 1 % and may be imposed only in 1/4% increments. The tax may not be imposed on the sale of food for human consumption 

( that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been 

prepared for immediate consumption) and prescription and nonprescription medicines, 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 thereof shall be collected and enforced by the State Department of 

Revenue. The ce1tificate of registration which is issued by the Department to a retailer under the Retailers' Occupation Tax 

Act I shall pem1it such retailer to engage in a business which is taxable under any ordinance or resolution enacted pursuant to 

this Section without registering separately with the Department under such ordinance or resolution or under this Section. The 

Department shall have full power to administer and enforce this Section; to collect all taxes and penalties due hereunder; to 

dispose of taxes and penalties so collected in the manner hereinafter provided, and to determine all rights to credit memoranda, 

mising on account of the enoneous payment of tax or penalty hereunder. In the administration of, and compliance with, this 

Section, the Department and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities, 

powers and duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions of terms, and employ 

the same modes of procedure, as are prescribed in Sections I, la, la-1, ld, le, If, Ji, lj, 2 through 2-65 2 (in respect to all 

provisions therein other than the State rate of tax), 2c, 3 3 (except as to the disposition of taxes 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 of the Retailers' Occupation Tax Act"' 

and Section 3-7 ofthe Uniform Penalty and Interest Act 5 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 of this Code. 

Persons subject to any tax imposed pursuant to the authority granted in this Section may reimburse themselves for their setler's 

tax liability hereunder by separately stating such tax as an additional charge, which charge may be stated in combination, in a 

single amount, with State tax which sellers are required to collect under the Use Tax Act, 6 pursuant to such bracket schedules 

as the Department may 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 of issuing a credit 

memorandum, the Department shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified, 

and to the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out of the 

non-home rule municipal retailers' occupation tax fund. 

The Department shall forthwith pay over to the State Treasurer, ex officio. as tmstee, all taxes and penalties collected hereunder. 

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, and the Treasurer shall transfer, to the ST AR Bonds Revenue Fund the local 

sales tax increment, as defined in the Innovation DeYelopment and Economy Act. collected under this Section during the second 

preceding calendar month for sales \\"ithin a ST AR bond district. 

After the monthly transfer to the ST AR Bonds ReYenue Fund, on or before the 25th day of each calendar month. the 

Department shall prepare and ce1tify to the Comptroller the disbursement of stated sums of money to named municipalities, 

the municipalities to be those from which retailers ha\'e paid taxes or penalties hereunder to the Department during the second 

preceding calendar month. The amount to be paid to each municipality shall be the amount (not including credit memoranda) 

collected hereunder during the second preceding calendar month by the Department plus an amount the Department 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 of refunds made during the second preceding calendar month by the Department on behalf of such municipality, 

and not including any amount which the Department determines is 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, of the disbursement certification to the 

municipalities, provided for in this Section to be given to the Comptroller by the Department, the Comptroller shall cause the 

orders to be dra,vn for the respective amounts in accordance with lhe directions contained in such certification. 

For the purpose of determining the local go,,ernmenta! unit whose tax is applicable, a retail sale. by a producer of coal or other 

mineral mined in Illinois, is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from the 

earth. This paragraph does not apply to coal 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 of engaging in any 

business which under the constitution of the United States may not be made the subject of taxation by this State. 

\Vhen certifying the amount of a monthly disbursement to a municipality under this Section, the Department shall increase or 

decrease such amount by an amount necessary to offset any misallocation of previous disbursements. The offset amount shall 

be the amount erroneously disbursed within the previous 6 months from the time a misallocation is discovered. 

The Department of Revenue shail implement this amendatory Act of the 91st General Assembly so as to collect the tax 011 

and after January 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 may be 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 by P.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. I 991. 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 2 to 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 of the 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-Hurd Illinois Compiled Statutes Annotated 

Chapter 65. Municipalities 

Act 5. Illinois Municipal Code (Refs & Annos) 

Article 8. Finance 

DiYision 11. Certain Rewnue Taxes 

65 ILCS 5/8-11-1.4 

Formerly cited as IL ST CH 24 ~8-11-1.4 

5/8-11-1-4- Non-Home Rule Municipal Serdce Occupation Tax Act 

Effective: July 20, 2012 

Currentness 

§ 8-11-1.4. Non-Home Rule Municipal Service Occupation Tax Act. The corporate authorities ofa non-home rule municipality 

may impose a tax upon all persons engaged, in such municipality, in the business of making sales of service for expenditure 

on public infrastmcture or for property tax relief or both as defined in Section 8-11-1.2 if approved by referendum as provided 

in Section 8-11-1.1, of the selling price of all tangible personal properly transferred by such servicemen either in the fonn of 

tangible personal property or in the fom1 of real estate as an incident to a sale of service. If the tax is approYed by referendum on 

or after July 14, 2010 (the effective date of Public Act 96-1057), the corporate authorities ofa non-home rule municipality may, 

until December 31. 2020, use the proceeds of the tax for expenditure on municipal operations, in addition to or in lieu of any 

expendinrre on public infrastmcture or for property tax relief. The tax imposed may not be more tlian I% and may be imposed 

only in 1/4% increments. The tax may not be imposed on the sale of food for human consumption that is to be consumed 

off rhe premises where it is sold ( other than alcoholic beverages, soft drinks, and food that has been prepared for immediate 

consumption) and prescription and nonprescription medicines, drugs, medical appliances, and insulin, urine testing materials, 

syringes, and needles used by diabetics. The tax imposed by a municipality pursuant to this Section and a!! civil penalties that 

may be assessed as an incident thereof shall be collected and enforced by the State Department of Revenue. The certificate 

of registration which is issued by the Department to a retailer under the Retailers' Occupation Tax Act 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 

enacted pursuant to this Section without registering separately with the Department under such ordinance or resolution or under 

this Section. The Department shall have full power to administer and enforce this Section; to collect all taxes and penalties due 

hereunder; to dispose of taxes and penalties so collected in the manner hereinafter provided, and to determine all rights to credit 

memoranda arising on account of the erroneous payment of tax or penalty hereunder. In the administration of, and compliance 

with, this Section the. Department and persons who are subject to this Section shall have the same rights, remedies, privileges, 

immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions oftenns, 

and employ the same modes of procedure, as are prescribed in Sections 1 a-1, 2, 2a, 3 through 3-50 3 (in respect to all provisions 

therein other than the State rate of tax), 4 4 (except that the reference to the State shall be to the taxing municipality), 5, 7, 

8 5 (except that the jurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the taxing 

municipality), 9 6 (except as to the disposition of taxes and penalties collected, and except that the returned merchandise credit 

for this municipal tax may not be taken against any State tax), 10, 11, 12 7 ( except the reference therein to Section 2b of tl1e 

Retailers' Occupation Tax Act) 8, 13 9 ( except that any reference to the State shall mean the taxing municipality), the first 

paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service Occupation Tax Act 10 and Section 3-7 of the Uniform Penalty 

and Interest Act, 11 as fully as if those provisions \Vere set forth herein. 

No municipality may impose a tax under this Section unless the municipality also imposes a tax at the same rate under Section 

8-11-1.3 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 tax which servicemen are authorized to collect under the Service Use Tax Act, 12 

pursuant to such bracket schedules as the Department may prescribe. 

\Vhcnever the Department determines that a refond should be made under this Section to a claimant instead of issuing credit 

memorandum, the Department shall notify the State Comptroller, \Vito shall cause the order to be drawn for the amount specified. 

and to the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out of the 

municipal retailers' occupation tax fund. 

The Department shall forthwith pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected hereunder. 

As soon as possible after the first day of each month, beginning January 1, 2011, upon certification of the Department of 

Revenue, the Comptroller shall order transferred, and the Treasurer shall transfer, to the ST AR Bonds Revenue Fund the local 

sales tax increment, as defined in the Innovation Development and Economy Act, collected under this Section during the second 

preceding calendar month for sales within a STAR bond district. 

After the monthly transfer to the 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 of stated sums of money to named municipalities, 

the municipalities to be those from which suppliers and servicemen have paid taxes or penalties hereunder to the Department 

during the second preceding calendar month. The amount to be paid to each municipality shall be the amount (not including 

credit memoranda) collected herelUlder during the second preceding calendar month by the Department, and not including an 

amount equal to the amount of refunds made during the second preceding calendar month by the Department on behalf of 

such municipality, o.nd not including any amounts that are transferred to the STAR Bonds ReYenue Fund. Within 10 days after ( 

receipt, by the Comptroller, of the disbursement certification to the municipalities and the General Revenue Fund, provided for 

in this Section to be given to the Comptroller by the Department, the Comptroller shall cause the orders to be drawn for the 

respective amounts in accordance with tl1e directions contained in such certification. 

The Department of Revenue shall implement this amendatory Act of the 91st General Assembly so as to collect the tax on 

and after January I, 2002. 

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

business which under the constitution of the United States may not be made the subject of taxation by this State. 

As used in this Section, ·'municipal" or "municipality" means or refers to a city, village or incorporated town, including an 

incorporated town which has superseded a civil township. 

This Section shall be known and may be cited as the "Non-Home Rule Municipal Service Occupation Tax Act". 

Credits 

Laws 1961, p. 576, § 8-11-1.4, added by P.A. 85-1135, Art. II,§ 1, eff. Jan. L 1990. Amended by P.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, I 992. Re-enacted by P.A. 9 !-51. § 150, eff. June 30, 1999. Amended by 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. 

Formerly lll.Rev.Sta,t.1991, ch. 24, ~: 8- I 1-1.4. 
( 

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 

Current through 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 

Formerly cited as IL ST CH 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 Occupation Tax Act. The corporate authorities ofa non-home mle municipality 

may impose a tax upon all persons engaged. in such municipality, in the business of making sales of service for expenditure 

on public infrastructure or for property tax relief or both as defined in Section 8-11-1.2 if approved by referendum as provided 

in Section 8-11-1.1, of the selling price of all tangible personal property transferred by such servicemen either in the form of 

tangible personal property or in the form ofrea\ estate as an incident to a sale of service. lfthe tax is appro\'ed by referendum on 

or after July 14, 2010 (the effective date of Public Act 96¥ 1057), the corporate authorities of a non-home mle municipality may, 

until December 31, 2020, use the proceeds of the tax for expenditure on municipal operations, in addition to or in lieu of any 

expenditure on public infrastmctme or for property tax 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 

( 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, dmgs, medical appliances, and insulin, urine testing materials, 

syringes, and needles used by diabetics. The tax imposed by a municipality pursuant to this Section and all civil penalties that 

may be assessed as an incident thereof shall be collected and enforced by the State Department of RcYenue. The certificate 

of registration which is issued by the Department to a retailer under the Retailers' Occupation Tax Act 1 or under the Service 

Occupation Tax Act 2 shall pem1it such registrant to engage in a business which is taxable under any ordinance or resolution 

enacted pursuant to this Section without registering separately with the Depmtment under such ordinance or resolution or under 

lhis Section. The Department shall haYe full power to administer and enforce this Section; to collect all taxes and penalties due 

hereunder; to dispose of taxes and penalties so collected in the manner hereinafter provided, and to determine all rights to credit 

memoranda mising on account of the erroneous payment of tax or penalty hereunder. In the administration of, and compliance 

with, this Section the. Department and persons who are subject to this Section shall have the same rights, remedies, privileges, 

immunities, powers and duties, and be subject lo the same conditions, restrictions, limitations, penalties and definitions of terms, 

and employ the same modes of procedure, as are prescribed in Sections I a- l, 2, 2a, 3 through 3-50 3 (in respect to all provisions 

therein other than the State rate of tax), 4 4 (except that the reference to the State shall be to the taxing municipality), 5, 7, 

8 5 (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 of taxes 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 of the 

Retailers' Occupation Tax Act) 8, 13 9 ( except that any reference to the State shall mean the taxing municipality), the first 

paragraph of Section ) 5, 16, 17, 18, i9 and 20 of the Service Occupation Tax Act JO and Section 3-7 of the Uniform Penalty 

and Interest Act, 11 as fully as if those provisions were set forth herein. 

No municipality may impose a tax under this Section unless the municipality also imposes a tax at the same rate under Section 

8-11-1.3 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 collect under the 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 of issuing credit 

memornndum, the Department shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified, 

and to the person named. in such notification from the Department. Such refund shall be paid by the State Treasurer out of the 

municipal retailers' occupation tax fund. 

The Department shall forthwith pay o\'er to the State Treasurer. ex officio, as trnstee, all taxes and penalties collected hereunder. 

As soon as possible after the first day of each month, beginning January 1, 2011, upon certification of the Department of 

Re\·enue. the Comptroller shall order transferred, 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 Section during the second 

preceding calendar month for sales within a ST AR 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 of stated sums of money to named municipalities. 

the municipalities to be those from which suppliers and servicemen have paid taxes or penalties hereunder to the Department 

during the second preceding calendar month. The amount to be paid to each municipality shall be the amount {not including 

credit memoranda) collected hereunder during the second preceding calendar month by the Department, and not including an 

amount equal to the amount of refunds made during the second preceding calendar month by the Depa1tmcnt on behalf of 

such municipality, and not including any amounts that are transferred to the ST AR Bonds Revenue Fund. Within IO days after ( 

receipt, by the Comptroller, of the disbursement certification to 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 of Reve1me shall implement this amendatoty Act of the 91 st General Assembly so as to collect the tax on 

and after January 1, 2002. 

Nothing in this Section shall be constrned to authorize a municipality to impose a tax upon the priYilege of engaging in any 

business which under the constitution of the United States may not be made the subject of taxation by this State. 

As used in this Section, "municipal'' or "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 and may be cited as the ''Non-Home Rule Municipal Service Occupation Tax Act". 

Credits 

laws 1961, p. 576, § 8-11-1.4. added by P.A. 85- J 135. Art. ll. * 1, eff. Jan. l. l 990. 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. Amended by 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!. l 991. 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 1 ct 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 l 5 15. I 15 l (,. 115 P. 115 1 R. 115 l 'i and 1 J 5 ::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 

Cunent through P.A. 99-487 of the-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 STATUTES ANNOTATED 

CHAPTER 65. MUNICIPALITIES 

ACT 5. ILLINOIS MUNICIPAL CODE 

ARTICLE 8. FINANCE 

DIVISION 11. CERTAIN REVENUE TAXES 

5/8-11-1.6. Municipal retailers occupation tax 

§ 8-11-1.6. Municipal retailers occupation tax. The corporate authorities of a non-home mle municipality with a population of 

more than 20.000 but less than 25,000 that has, prior to January 1, 1987, established a Redevelopment Project Area that has been 

certified as a State Sales Tax Boundary and has issued bonds or 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 of Division 11-74.4 

of this Code 1 may, by passage of an ordinance, impose a tax upon all persons engaged in the business of selling tangible 

personal property, other than on an item of tangible personal property that is titled and registered by an agency of this State's 

Government, at retail in the municipality. If imposed, the tax shall only be imposed in .25% increments oft he gross receipts from 

such sales made in the course ofbusiness. Any tax imposed by a municipality under this Section and all civil penalties that may 

be assessed as an incident thereof shal1 be collected and enforced by the State Department of Revenue. An ordinance imposing 

or discontinuing a tax here1mder or effecting a change in the rate thereof shall be adopted and a certified copy thereof filed with 

the Department on or before the first day of October, whereupon the Department shall proceed to administer and enforce this 

Section as of the first day of January next following such adoption and filing. The certificate ofregistration that is issued by 

the Department to a retailer under the Retailers' Occupation Tax Act 2 shall pem1it the retailer to engage in a business that is 

( taxable under any ordinance or resolution enacted under this Section without registering separately ,vith the Department under 

the ordinance or resolution or under this Section. The Department shall have full power to administer and enforce this Section, 

to collect all taxes and penalties due hereunder, to dispose of taxes and penalties so collected in the manner hereinafter provided, 

and to determine all rights to credit memoranda, arising on account of the eIToneous payment of tax or penalty hereunder. 

In the administration of, and compliance with this Section, the Department and persons who are subject to this Section shall 

have the same rights, remedies, privileges, immunities, powers, and duties, and be subject to the same conditions, restrictions, 

!imitations, penalties, and definitions of tem1s, and employ the same modes of procedure, 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 of tax), 2c, 3 (except as 

to the disposition of taxes 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 of the Retailers' Occupation Tax Act 3 and Section 3-7 of the 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 collect under the Use Tax Act, 5 pursuant to such bracket schedules 

as the Department may prescribe. 

Whenever the Department determines that a refund should be made under this Section to a claimant, instead of issuing a 

credit memorandum, the Department shall notify the State Comptroller, who shall cause the order to be drawn for the amount 

specified, and to the person named in the notification from the Department. The refund shall be paid by the State Treasurer out 

of the Non-Home Rule Municipal Retailers' Occupation Tax Fund. 

The Department shall forthwith pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected hereunder. 

On or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the disbursement 

of stated sums of money to named municipalities, the municipalities to be those from which retailers have paid taxes or penalties 

hereunder to the Department during the second preceding calendar month. The amount to be paid to each municipality shall 

{ be the amount (not including credit memoranda) collected hereunder during the second preceding calendar month by the 

Department plus an amount the Department detem1ines is necessaiy to offset any amounts that were erroneously paid to a 
65 ILCS 518-11-1.6. 65 ILCS 5/8-11-1.6 

different taxing body. and not including an amount equal to the amount of refunds made during the second preceding calendar 

month by the Department on behalf of the 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 of the disbursement certification to the municipalities provided for in this 

Section to be given to the Comptroller by 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. 

For the purpose of determining the local governmental unit whose tax is applicable, a retail sale by a producer of coal or other 

mineral mined in Illinois is a sale at retail at the place where the coal or other mineral mined in lllinois 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 exempt under the federal Constitution as a sale in interstate or foreign commerce. 

Nothing in this Section shall be construed to authorize a municipality to impose a tax upon the privilege of engaging in any 

business which under the constitution of the United States may not be made the subject of taxation by this State. 

When certifying the amount of a monthly disbursement to a municipality under this Section, the Department shall increase or 

decrease the amount by an amount necessary to offset any misallocation of previous disbursements. The offset amount shall be 

the amount enoneously disbursed within the previous 6 months from the time a misallocation is discovered. 

As used in this Section, "municipal" and "municipality" means a city, village, or incorporated town, including an incorporated 

town that has superseded a civil township. 

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 Statutes Annotated 

Chapter 65. Municipalities 

Act 5. Illinois Municipal Code (Refs & Annas) 

Article 8. Finance 

Di\':ision 11. Certain Revenue Taxes 

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 of a non-home rule municipality with a population of more than 20,000 but less than 25,000 that has, prior to January 

1, 1987, established a Redevelopment Project Area that has been certified as a State Sales Tax Boundary and has issued bonds or 

othenvise incurred indebtedness to pay for costs in excess of S5,000,000, which is secured in part by a tax increment al!ocation 

fund, in accordance with the provisions of Division 11-74.4 of this Code I 

may, by passage ofan ordinance, impose a tax upon 

all persons engaged in the business of selling tangible personal property. other than on an item of tangible personal property that 

is titled and registered by an agency of this State's Government, at retail in the municipality. This tax may not be imposed on the 

sales of food for human consumption that is to be consumed off the premises where it is sold ( other than alcoholic beverages, 

soft drinks, and food that has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, 

medical appliances and insulin, urine testing materials. syringes, and needles used by diabetics. If imposed, t]1e tax shall only 

( be imposed in .25% increments of the gross receipts from such sales made in the course of business. Any tax imposed by a 

municipality under this Sec. and all civil penalties that may be assessed as an incident thereof shall be collected and enforced 

by the State Department of Revenue. An ordinance imposing a tax hereunder or effecting a change in the rate thereof shall be 

adopted and a certified copy thereof filed with the Department on or before the first day of October, whereupon the Department 

shall proceed to administer and enforce this Section as of the first day of Janumy next following such adoption and filing. 

The certificate of registration that is issued by the Department to a retailer under the Retailers' Occupation Tax Act 2 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 or resolution or under this Section. The Department shall have 

full power to administer and enforce this Section, to collect all taxes and penalties due hereunder, to dispose of taxes and 

penalties so collected in the manner hereinafter proYided, and to detennine all rights to credit memoranda, arising on account of 

the erroneous payment of tax 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 to the same conditions, restrictions, limitations, penalties, and definitions of terms, and employ the same modes 

of procedure, as are prescribed in Sections I, la, I a-1, Id, I e, If, Ii, l j, 2 through 2-65 3 (in respect to all provisions therein 

other than the State rate of tax), 2c. 3 4 (except as to the disposition of taxes 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 of the Retailers' Occupation Tax Act 5 and Section 3-7 of 

the Uniform Penalty and Interest Act 6 as fully as if those provisions were set forth herein. 

A tax may not be imposed by a municipality under this Section unless the municipality also imposes a tax at the same rate 

under Section 8-11-1.7 of this Act. 

Persons subject to any tax imposed under the authority granted in this Section, may rcimbun;c 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 
518-11-1.6. 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 Department may prescribe. 

Whenever the Department determines that a refund should be made under this Section to a claimant, instead of issuing a credit 

memorandum. the Department shall notify the State Comptroller. who shall cause the order to be drawn for the amount specified, 

and to the person named in the notification from the Oepa1tment. The refund shall be paid by the State Treasurer out of the 

Non-Home Rule Municipal Retailers' Occupation Tax Fund, which is hereby created. 

The Department shall forthwith pay o\'er to the State Treasurer. ex officio, as trnstee, all taxes and penalties collected 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 order transferred. and the Treasurer shall transfer, to the ST AR Bonds Ren:nue Fund the local 

sales tax increment. as defined in the Jrn10·.-ation Development and Economy Act, collected under this Section during the second 

preceding calendar month for sales within a ST AR bond district. 

After the monthly trnnsfer to the ST AR 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 of stated sums of money to named municipalities, 

the municipalities to be those from which retailers ha\·e paid taxes or penalties hereunder to the Department during the second 

preceding calendar month. The amount to be paid to each municipality shall be the amount (not including credit memoranda) 

collected hereunder during the second preceding calendar month by the Department plus an amount the Department dete11niues 

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 on behalf of the municipality, and 

not including any amount that the Department determines is necessary to offset any amounts that were payable to a different 

taxing body but were erroneously paid to the municipality, and not including any amounts that are transferred to the ST AR 

Bonds Revenue Fund. Within ! 0 days after receipt by the Comptroller of the 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 the pUIJJOse of determining the local govemmental unit whose tax is applicable, a retail sale by a producer of coal or other 

mineral mined in Tllinois is a sale at retail at the place \,;·here the coal or other mineral 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 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 constrned to authorize a municipality to impose a tax upon the privilege of engaging in any 

business which under the constitution of the United States may not be made the subject of taxation by this State. 

When certifying the amount of a monthly disbursement to a municipality under this Section, the Department shall increase or 

decrease the amount by an amount necessary to offset any misallocation of previous disbursements. The offset amount shall be 

the amount erroneously disbursed within the previous 6 months from the time a misallocation is discovered. 

As used in this Section, "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 l 20 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 I 05 I et se<.J. 

65 l.LC.S. 518-l J-l.6. IL ST Cl-I 65 ~ 518-11-1.6 

Current through 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 STATIITES ANNOTATED 

CHAPTER 65. MUNICIPALITIES 

ACT 5. 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 of a non-home rule municipality with a population of more than 20,000 but less than 

25,000 as determined by the last preceding decennial census that has, prior to January 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 of S5,000,000, which is secured in part by a tax increment allocation fund, in accordance with the 

provisions of Division 11-74.7 1 of this Code may, by passage ofan ordinance, impose a tax upon all persons engaged in the 

municipality in the business of making sales of ser;ice. If imposed, the tax shall only be imposed in .25% increments of the 

selling price of all tangible personal property transferred by such servicemen either in the fonn of tangible personal property or 

in the fonn of real estate as an incident to a sale of service. The tax imposed by a munic.ipality under this Section and all civil 

penalties that may be assessed as an incident thereof shall be collected and enforced by the State Department of Revenue. An 

ordinance imposing or discontinuing a tax hereunder or effecting a change in the rate thereof shall be adopted and a certified copy 

thereof filed with the Department on or before the first day of October, whereupon the Depa1tment shall proceed to administer 

and enforce this Section as of the 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 Act 2 or under the Service Occupation Tax Act 3 

shall pem1it the regisn·ant to engage in a business that is taxable under any ordinance or resolution enacted under this Section 

without registering separately with the Department under the ordinance or resolution or under this Section. The Department 

shall have full power to administer and enforce this Section, to collect all taxes and penalties due hereunder, to dispose of 

taxes and penalties so collected in a manner hereinafter provided, and to detennine all rights to credit memoranda arising on 

account of the erroneous payment of tax or penalty hereunder. In the administration of and compliance with this Section, the 

Department and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities, powers, 

and duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions oftenns, and employ the 

same modes of procedure, as are prescribed in Sections I a-1, 4 2, 2a, 3 through 3-50 (in respect to all provisions therein other 

than the State rate of tax), 4 (except that the reference to the State shall be to the taxing municipality), 5. 7, 8 (except that the 

jurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the taxing municipality), 9 (except 

as to the disposition of taxes and penalties collected, and except that the returned merchandise credit for this municipal tax may 

not be taken against any State tax), lO, 11, 12, 5 (except the reference therein to Section 2b of the Retailers' Occupation Tax 

Act 6), 13 (except that any reference to the State shall mean the taxing municipality), the first paragraph of Sections 15, 16, 

17, !8, 19, and 20 of the Service Occupation Tax Act 7 and Section 3-7 of the Unifonn Penalty and Interest Act, 8 as fully 

as if those pro\'isions were set fmth herein. 

Person subject to m1y tax imposed under the authority granted in this Section may reimburse themselves for their servicemen's 

tax liability hereunder by separately stating the tax as an additional charge, which charge may be stated in combination, in a 

single amount, with State tax that servicemen are authorized to 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 should be made under this Section to a claimant instead of issuing credit 

memorandum, the Department shail notify the State Comptroller, who shall cause the order to be drawn for the amount specified, 

and to the person named, in such notification from the Department The refund shall be paid by the State Treasurer out of the 

Municipal Retailers' Occupation Tax Fund. 
65 ILCS 518-11-1.7, 65 ILCS 518-11-1.7 

The Department shall forthwith pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected hereunder. 

On or before the 25th day of each calendar month. the Department shall prepare and certify to the Comptroller the disbursement 

of stated sums of money to named municipalities, the municipalities to be those from which suppliers and servicemen have paid 

taxes or penalties hereunder to the Department 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 of such municipality. Within 10 days after receipt by the Comptroller of the 

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 of engaging in any 

business V,·"hich under the constitution of the L'nited States may not be made the subject of taxation 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 enrolled bill. Probably should read "Division 11-74.4". (65 lLCS 5/l l-74.4-1 et seq.). 

2 35 ILCS 12011 et 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 Statutes Annotated 

Chapter 65. Munieipalities 

Act 5. Illinois Municipal Code (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-home rule 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 of a non-home rnle municipality with a population of more than 20,000 but less than 25,000 as determined by the 

last preceding decennial census that has, prior to January 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 part by a tax increment allocation fund, in accordance with the provisions of Division 11-74.4 1 

of this Code may, by passage of an ordinance, impose a tax upon all persons engaged in the municipality in the business of 

making sales of service. If imposed, the tax shall only be imposed in .25% increments of the selling price of all tangible personal 

property transferred by such servicemen either in the fonn of tangible personal property or in the fonn of real estate as an 

incident to a sale of service. This tax may not be imposed on the sales of food for human consumption that is to be consumed 

off the premises where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate 

( consumption) and prescription and nonprescription medicines, 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 thereof shall be collected and enforced by the State Department of Revenue. An ordinance imposing a 

tax hereunder or effecting a change in the rate thereof shall be adopted and a certified copy thereof filed with the Department 

on or before the first day of October, whereupon the Department shall proceed to administer and enforce this Section as of the 

first day of Janua1y 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 any ordinance or resolution enacted under this Section without registering separately 

with the Department under the ordinance or resolution or under this Section. The Department shall have full power to administer 

and enforce this Section, to collect all taxes and penalties due hereunder, to dispose of taxes and penalties so collected in a 

manner hereinafter provided, and to detennine all rights to credit memoranda arising on account of the erroneous payment 

of tax or penalty hereunder. In the administration of and compliance with this Section, 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 of procedure, as are 

prescribed in Sections la-1, 2, 2a, 3 through 3-50 4 (in respect to all provisions therein other than the Stale rate of tax), 4 5 

(except that the reference to the State shall be to the taxing municipality), 5, 7, 8 6 (except that the jurisdiction to which the 

tax shall be a debt to the extent indicated in that Section 8 shall be the taxing municipality), 9 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 of the Retailers' Occupation Tax Act'\ 13 JO (except 

that any reference to the State shall mean the taxing municipality), the first paragraph of Sections 15, 16, 17, 18, 19, and 20 of 

the Service Occupation Tax Act 11 and Section 3-7 of the Uniform Penalty and Interest Act, 12 as fully as if those 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 of this Act. ( 

Person subject to any tax imposed under the 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 may be stated in combination, in a 

single amount, with State tax that ser\"icemen are authorized to co!lect under the Service Use Tax Act, u under such bracket 

schedules as the Department may prescribe. 

\\'hene,·er the Department dctennines that a refund should be made under this Section to a claimant instead of issuing credit 

memorandum, the Department shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified. 

and to the person named. in such notification from the Department. The refund shall be paid by the State Treasurer out of the 

Non-Home Rule Municipal Retailers' Occupation Tax Fund. 

The Department shall forthwith pay over to the State Treasurer, ex officio, as tmstee, all taxes and penalties collected hereunder. 

As soon as possible after the first day of each month, beginning January 1. 2011, upon certification of the Department of 

Revenue, the Comptroller shall order transferred, and the Treasurer shall transfer, to the STAR Bonds Revenue Fund the local 

sales tax increment, as defined in the Innovation Development and Economy Act, collected under this Section during the second 

preceding calendar month for sales within a 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 certify to the Comptroller the disbursement of stated sums of money to named municipalities, 

the municipalities to be those from which suppliers and servicemen have paid taxes or penalties hereunder to the Department 

during the second preceding calendar month. 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 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 ST AR Bonds Revenue Fund. Within IO days after receipt 

by the Comptro!ler of the disbursement certification to the municipalities and the General Re\'enue Fund, 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 

amounts in accordance with the directions contained in the certification. 

When certifying the amount of a monthly disbursement to a municipality under this Section, the Department shall increase or 

decrease the amount by an amount necessary to offset any misallocation of previous disbursements. The offset amount shall be 

the amount erroneously disbursed within the pre\'ious 6 months from the time a misallocation is discovered. 

Nothing in this Section shall be construed to authorize a municipality to impose a tax upon !he privilege of engaging in any 

business which under the constitution ofthe lJnited States may not be made the subject of taxation 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 1 cl 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. 

l J 35 fLCS l l 5 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 § 518-11-1.7 

Current through P.A. 99-487 of the 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 ILLINOIS ANNOTATED STATUTES 

CHAPTER 34. COUNTIES 

COUNTIES CODE 

ARTICLE 5. POVVERS AND DlJTIES OF COUNTY BOARDS 

DNISION 5-1. IN GENERAL 

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 of selling tangible personal property, other than an item of tangible personal property titled 

or registered ;vith an agency of this State's government. at retail in the county on the gross receipts from such sales made in 

the course of such business. If imposed, 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 of food for human consumption which is to be consumed off the premises 

where it is sold ( other than alcoholic be,·erages, 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 a home rule county pursuant to this Section and all civil penalties that maybe assessed as 

an incident thereof shall be collected and enforced by the State Department of Revenue. The certificate of registration which is 

issued by the Department to a retailer under the "Retailers' Occupation Tax Act'", approved June 28, I 933, as amended, 1 shall 

pem1it such retailer to engage in a business which is taxable under any ordinance or resolution enacted pursuant to this Section 

without registering separately ·with the Department under such ordinance or resolution or under this Section. The Department 

shall have full power to administer and enforce this Section; to collect all taxes and penalties due hereunder; to dispose of 

taxes and penalties so collected in the manner hereinafter provided, and to determine al! rights to credit memoranda, arising on 

( account of the erroneous payment of tax or penally 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 of terms, and employ the 

same modes of procedure, 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 of tax), -+, 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 

of the "Retailers' Occupation Tax Act", as the same are now or may hereafter be amended, 4 as fully as if provisions contained 

in those Sections of the "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 pursuant to the authority granted in this Section may reimburse themselves for their seller's 

tax liability hereunder by separately stating such tax as an additional charge, which charge may be stated in combination, in a 

single amount, with State tax which sellers are required to collect under the "Use Tax Act'", 6 pursuant to such bracket schedules 

as the Department may prescribe. 

WheneYer 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 ComptroJler, who shall cause the order to be drawn for the amount specified, 

and to the person named, in such notification from the Department. Such refi.md shalt be paid by the State Treasurer out of the 

home rule county retailers' occupation tax fund. 

The Department shall forthwith pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected hereunder. 

On or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the disbursement 

of stated sums of money to named counties, the counties to be those from which retailers have paid taxes or penalties hereunder 

to the Department during the second preceding calendar month. The amount to be paid to each county 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 taxing 
5,1006. Home Rule County Retailers' Occupation Tax. S.H.A. ch. 34 'ii 5-1006 

body, and not including an amount equal to the amount of refunds made during the second preceding calendar month by the 

Department on behalf of such county, and not including any amount which the Department detennines is necessary to offset any 

amounts which were payable (o a different taxing body but \Vere erroneously paid to the county. Within JO days after receipt, by 

the Comptroller, of the disbursement certification to the counties provided for in this Section to be given to the Comptroller by 

the Department, the Comptroller shall cause the orders to be drawn for the respective amounts in accordance with the directions 

contained in such certification. 

In addition to the disbursement required by the preceding paragraph, an allocation shall be made in March of each year to 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 calendar year (excluding the 2 months of highest receipts). The distribution made in March of 

each year subsequent to the year in which an allocation was made pursuant to this paragraph and the preceding paragraph shall 

be reduced by the amount allocated and disbursed under this paragraph in the preceding calendar year. The Department sha!l 

prepare and certify to the Comptroller for disbursement the allocations made in accordance ,,vith this paragraph. 

For the purpose ofdetem1ining the local governmental unit whose tax is applicable, a retail sale, by a producer of coal 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 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 construed to authorize a county to impose a tax upon the privilege of engaging in any business 

which under the Constitution of the Gnited States may not be made the subject of taxation by this State. 

An ordinance or resolution imposing or discontinuing a tax hereunder or effecting a change in the rate thereof shall be adopted 

and a certified copy thereof filed with the Department on or before the first day of June, whereupon the Deparm1ent shall 

proceed to administer and enforce this Section as of the first day of September 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 of previous 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 I 20, ,. 440 et seq. 

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

3 Chapter 120, ,r 443 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 of this 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 of certain Sections of Acts 

which have been added or amended by more than one Act of the 86th General Assembly; repeals certain Sections that have been 

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 

of Art. L § 1-2. relating (o intent and Art. V. ~ 5-1, relating to effective dates and acceleration of Acts with later effective dates 

or extension or revival of repealed 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 Statutes Annotated 

Chapter 55. Counties 

Act 5. Counties Code (Refs &Armos) 

Aiticle 5. Powers and Duties of County Boards 

Dhision 5-1. In C'n'ncral 

55 ILCS 5/5-1006 

Formerly cited as IL ST CH 341!5-1006 

5/5-1006. Home Ruic County Retailers' Occupation Tax Law 

Effective: July 31, 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 of selling tangible personal property, other than an item of tangible personal property titled 

or registered with an agency of this State's government, at retail in the county on the gross receipts from such sales made in 

the course of their business. If imposed, this tax shall only be imposed in 1/4% increments. On and af1er 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, 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 thereof shall be collected and enforced by the State Department of Revenue. The certificate of registration 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 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 haYe full power to administer 

and enforce this Section; to collect all taxes and penalties due hereunder; to dispose of taxes and penalties so collected in the 

manner hereinafter provided; and to determine all rights to credit memoranda arising on accorn1t of the erroneous payment 

of tax or penalty hereunder. In the administration of, and compliance with, this Section, the Department and persons who are 

subject to this Section shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the 

same conditions, restrictions, limitations, penalties and definitions of tenns, and employ the same modes of procedure, as are 

prescribed in Sections 1, 1 a, I a-1, l d, ! e, If, 1 i, lj, lk, Im, In, 2 tlrrough 2-65 2 (in respect to all provisions therein other 

than the State rate of tax), 4, 5, Sa, Sb, 5c, 5d, 5e, 5f. 5g, 5h. Si, 5j, 5k, 51, 6, 6a, 6b, 6c, 6d, 7, 8, 9, l 0, I I, 12 and 13 of the 

Retailers' Occupation Tax Act] and Section 3-7 of the Uniform Penalty and lnterest Act,~ as fully as if those provisions were 

set forth herein. 

No tax may be imposed by a home rule county pursuant to this Section unless the county also imposes a tax at the same rate 

pursuant to Section 5-1007. 

Persons subject to any tax imposed pursuant to the authority granted in this Section may reimburse themse]yes for their seller's 

tax liability hereunder by separately stating such tax as an additional charge, which charge may be stated in combination, in a 

single amount, v,·ith State tax which sellers are required to collect under the Use Tax Act, 5 pursuant to such bracket schedules 

as the Department may prescribe. 

WheueYer 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 
515-1006. 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 of the 

home rule county retailers' occupation tax fund. 

The Department shall forthwith pay O\"er 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 order transferred, and the Treasurer shall transfer. to the ST AR Bonds Re\•enue Fund the local 

sales lax increment, as defined in the Inno\'ation DeYelopment and Economy Act, collected under this Section during the second 

preceding calendar month for sales within a ST AR bond district. 

After the monthly transfer to the ST AR Bonds ReYenue Fund, on or before the 25th day of each calendar month. the Department 

shall prepare and ce1tify to the Comptroller the disbursement of stated sums of money to named counties. the counties to be 

those from which retailers have paid taxes or penalties hereunder to the Department during the second preceding calendar 

month. The amount to be paid to each county shall be the amount (not including credit memoranda) collected hereunder during 

the second preceding calendar month by the 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 of refunds 

made during the second preceding calendar month by the Department on behalf of such county, and not including any amount 

which the Department dctem1ines is necessary to offset any amounts which were payable to a different taxing body but were 

erroneously paid to the county. and not including any amounts that are transferred to the STAR Bonds Revenue Fund. Within 

IO days after receipt, by the Comptroller, of the 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 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 

paragrapl1 during the preceding calendar year (excluding the 2 months of highest receipts). The distribution made in March of 

each year subsequent to the year in which an allocation was made pursuant to this paragraph and the preceding paragraph shall 

be reduced by the amount allocated and disbursed under this paragraph in the preceding calendar year. The Department shall 

prepare and certify to the Comptroller for disbursement the allocations made in accordance with this paragraph. 

For the purpose of determining the local governmental unit whose tax is applicable. a retail sale by a producer of coal or other 

mineral mined in Illinois is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from the 

earth. This paragraph does not apply to coal 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 constmed to authorize a county to impose a tax upon the privilege of engaging in any business 

which under the Constitution of the United Slates may not be made the subject of taxation by this State. 

An ordinance or resolution imposi11g or discontinuing a tax hereunder or effecting a change in the rate thereof shall be adopted 

and a certified copy thereof filed with the Department on or before the first day of June, whereupon the Depmtment shall proceed 

to administer and enforce this Section as of the first day of September next following such adoption and filing. Beginning 

January 1, 1992, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate 

thereof shall be adopted and a certified copy thereof filed with the Department on or before the first day of July, whereupon the 

Department shall proceed to administer and enforce this Section as of the first day of October next following such adoption and 

filing. Beginning Janua1y 1, 1993. an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change 

in the rate thereof shall be adopted and a certified copy thereof filed with the Department on or before the first day of October, 

whereupon the Department shall proceed lo administer and enforce this Section as of the first day of January 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 of April. whereupon the Department shall proceed to administer and enforce this Section as of the first day 

of July next following the adoption and filing: or (ii) be adopted and a certified copy thereof filed with the Department on or 

before the first day of October, whereupon the Department shall proceed to administer and enforce this Section as of the first 

day of January next following the adoption and filing. 

When certif}-'ing the amount ofa monthly disbursement to a county under this Section. the Department shall increase or decrease 

such amotmt by an amount necessary to offset any misallocation of previous 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 may be 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!. 9 2-17. 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. l 99 l. ch. 34. c 5-1006. 

::-..:otes of Dccisiom (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 

Current through P.A. 99-487 of the 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-HURD ILLINOIS ANNOTATED STATUTES 

CHAPTER 34. COUNTIES 

COUNTIES CODE 

ARTICLE 5. POv\TERS AND DUTIES OF COUNTY BOARDS 

DIVISION 5-1. IN GENERAL 

5-1007. Home Rule County Service Occupation Tax 

§ 5-!007. Home Rule County Service Occupation Tax. The corporate authorities of a home rule county may impose a tax 

upon all persons engaged, in such county, in the business of making sales of service at the same rate of tax imposed pursuant 

to Section 5-1006 of the selling price of all tangible personal property transferred by such servicemen either in the fom1 of 

tangible personal property or in the form of real estate as an incident to a sale of service. If imposed, such tax shall only be 

imposed in 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 off the premises where it is sold (other than alcoholic beverages, soft drinks and 

food which has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical 

appliances and insulin, urine testing materials, syringes and needles used by diabetics. The tax imposed by a home rule county 

pursuant to this Section and all civil penalties that may be assessed as an incident thereof shall be collected and enforced by the 

State Department of Revenue. The certificate of registration which is issued by the Department to a retailer under the "Retailers' 

Occupation Tax Act"', approved June 28, 1933, as amended, 1 or under the "Service Occupation Tax Act", approved July 10, 

196 ' l, as amended, - shall pe1mit such registrant to engage in a business which is taxable under any ordinance or resolution 

enacted pursuant to this Section without registering separately with the Department under such ordinance or resolution or under 

this Section. The Department sha\J have full power to administer and enforce this Section; to collect all taxes and penalties due 

hereunder; to dispose of taxes and penalties so collected in the manner hereinafter provided, and to determine all rights to credit 

memoranda arising on account of the erroneous payment of tax or penalty hereunder. In the administration of, and compliance 

with, this Section, the Department and persons who are subject to this Section shall have the same rights, remedies, privileges, 

immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions oftem1s, 

and employ the same modes of procedure, as are prescribed in Sections la-I, 2, 2a, 3 3 (in respect to all provisions therein 

other than the State rate oftax), 4 4 (except that the reference to the State shall beto the taxing county), 5, 7, 8 5 (except that 

the jurisdiction 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 of taxes and penalties collected, and except that the returned merchandise credit for this county tax may 

not be taken against any State tax), I 0, 11, 12 7 ( except the reference therein to Section 2b of the Retailers' Occupatio11 Tax 

Act), 8 13 9 (except that any reference to the State shall mean the taxing county), the first paragraph of Section 15, 15 Yi, 16, 

17, !O 18, 19 and 20 of the "Service Occupation Tax Act", as the same are now or may hereafter be amended, 11 as fully as if 

provisions contained in those Sections of the "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 collect under the "Service Use Tax Act", 12 

pursuant to such bracket schedules as the Department may prescribe. 

Whenever the Department determines that a refund should be made under this Section to a claimant instead of issuing credit 

memorandum, the Department shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified, 

and to the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out of the 

home rnle county retailers' 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 or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the 

disbursement of stated sums of money to named counties, the counties to be those from which suppliers and servicemen hln·e 

paid taxes or penalties hereunder to the Department during the second preceding calendar month. The amount to be paid to each 

county shall be the amount (not including credit memoranda) collected hereunder during the second preceding calendar month 

by the Department, and not including an amount equal to the amount of refunds made during the second preceding calendar 

month by the Department on behalf of such county. Within 10 days after receipt, by the Comptroller, of the disbursement 

certification to the counties provided for in this Section to be given to the Comptroller by 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 disbursement required by the preceding paragraph. an allocation shall be made in each year to 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 of highest receipts). The distJ.ibution made in March of 

each year subsequent to the year in which an allocation was made pursuant to this paragraph and the preceding paragraph shall 

be reduced by tl1e amount allocated and disbursed under this paragraph in the preceding calendar year. The Department shall 

prepare and certify to the Comptroller for disbursement the allocations made in accordance with this paragraph. 

Nothing in this Section shall be construed to authorize a county to impose a tax upon the privilege of engaging in any business 

\Vhich under the constitution of the United States may not be made the subject of taxation by this State. 

An ordinance or resolution imposing or discontinuing a tax hereunder or effecting a change in the rate thereof shall be adopted 

and a certified copy thereof filed with the Department on or before the first day of June, whereupon the Department shall 

proceed to administer and enforce this Section as of the first day of September next following such adoption and filing. 

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,,1 439.10l et seq. 

3 Chapter 120, ~~ 439.102a, 439.102b, 439.102, 439.103. 

4 Chapter 120, r 439.104. 

5 Chapter 120, ,,~ 439. l 05, 439.l 07, 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 

J 990 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 of certain Sections of Acts 

v"11ich have been added or amended by more than one Act of the 86th General Assembly; repeals certain Sections that have been 

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. For provisions 

of Art. I, § l-2, relating to intent and Art. V. § 5-1, relating to effective dates and acceleration of Acts with later effective dates 

or extension or revival of repealed Acts, see Historical Notes following ch. 5, ~ 1505. 

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

I 
515-1007. Home Rule County Service Occupation Tax Law, IL ST CH 55 § 5/5-1007 

( West's Smith-Hmd Illinois Compiled Statutes A.nnotated 

( 

Chapter 55. Counties 

Act 5. Counties Code (Refs & Annos) 

Article 5. Powers and Duties of County Boards 

Dhision 5-1. In General 

55 ILCS 5/5-1007 

Formerly cited as IL ST CH 34 i)j-1007 

5/5-1007. Hume Rule County Scrdcc Occupatiun 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 of making sales of service at the same rate of tax imposed 

pursuant to Section 5-l 006 of the selling price of all tangible personal property transferred by such sefficemen either in the 

form of tangible personal property or in the form of real estate as an incident to a sale of service. If imposed, such tax shall 

only be imposed in 1

/, % 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 thereof shall be collected and 

enforced by the State Department of Revenue. The certificate of registration which is issued by the Department to a retailer 

under the Retailers' Occupation Tax Act 1 or under the SerYice Occupation Tax Act 2 shall permit such registrant to engage in a 

business V,·'hich 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 Departmen1 shalt have foll power to administer 

and enforce this Section; to collect all taxes and penalties due hereunder; to dispose of taxes and penalties so col!ected in the 

manner hereinafter provided: and to determine all rights to credit memoranda arising on account of the erroneous payment 

of tax or penalty hereunder. 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 of lem1s, and employ the same modes of procedure, as are 

prescribed in Sections l a-1, 2, 2a. 3 through 3-50 3 (in respect to all provisions therein other than the State rate of tax), 4 4 

(except that the reference to the State shall be to the taxing county), 5, 7, 8 5 {except that the jurisdiction to which the tax shall 

be a debt to the extent indicated in that Section 8 shall be the taxing county), 9 6 (except as to the disposition of taxes and 

penalties collected, and except that the returned merchandise credit for this county tax may not be taken against any State tax), 

10. 11, 12 7 (except the reference therein to Section 2b of the Retailers' Occupation Tax Act).~, 13 'l (except that any reference 

to the State shall mean the taxing county), the first paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service Occupation 

Tax Act IO and Section 3-7 of the Uniforn1 Penalty and Interest Act, 11 as fully as ifthose provisions were set forth herein. 

No tax may be imposed by a home 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 in 
515-1007. 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 of issuing credit 

memorandum. the Department shall notify the State Comptro!ler, who shall cause the order to be drawn for the amount specified. 

and to the person named, in such notification from the Department Such refund shall be paid by the State Treasurer out of the 

home mle county retailers' occupation tax fond. 

The Department shall forthwith pay over to the Slate Treasurer, ex~officio, as trnstee, all taxes and penalties collected hereunder. 

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 order transfen-ed, and the Treasurer shall transfer, to the ST AR Bonds ReYenue Fund the local 

sales tax increment. as defined in the lnnorntion Development and Economy Act, collected under this Section during the second 

preceding calendar month for sales within a ST AR bond 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 of stated stuns of money to named counties, the counties to be those 

from which suppliers and servicemen ha,·e paid taxes or penalties hereunder to the Department during the second preceding 

calendar month. The amount to be paid to each county shall be the amount (not including credit memoranda) collected hereunder 

during the second preceding calendar month by the Department, and not including an amount equal to the amounl of refunds 

made during the second preceding calendar month by the Department on behalf of such county, and not including any amounts 

that are transferred to the ST AR Bonds Revenue Fund. Within 10 days after receipt, by the Comptroller, ofihe disbursement 

certification to the counties provided for in this Section to be given to the Comptroller by the Department, the Comptroller shall 

cause the orders to be drawn for the respective amounts in accordance with the directions contained in such certification. 

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 calendar year ( excluding the 2 months of highest receipts). The distribution made in March of 

each year subsequent to the year in which an allocation was made pursuant to this paragraph and the preceding paragraph shall 

be reduced by the amount allocated and disbursed under this paragraph in the preceding calendar year. The Department shall 

prepare and certify to the Comptroller for disbursement the allocations made in accordance with this paragraph. 

Nothing in this Section shall be constmed to authorize a county to impose a tax npon the privilege of engaging in any business 

which under the Constitution of the United States may not be made the subject of taxation by this State. 

( 

An ordinance or resolution imposing or discontinuing a tax hereunder or effecting a change in the rate thereof shall be adopted 

and a certified copy thereof filed with the Department on or before the first day of June, whereupon the Department shall proceed 

to administer and enforce this Section as of the first day of September next following such adoption and filing. Beginning 

January I, 1992, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate 

thereof shall be adopted and a ce11ified copy thereof filed with the Department on or before the first day of July, whereupon the 

Department shall proceed to administer and enforce this Section as of the first day of October next following such adoption and 

filing. Beginning January I, I 993, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change 

in the rate thereof shall be adopted and a certified copy thereof filed with the Department on or before the first day of October, 

whereupon the Department shall proceed to administer and enforce this Section as of the first day of January next following 

such adoption and filing. Beginning April I, 1998, an ordinance or resolution imposing or discontinuing the tax hereunder or 

effecting a change in the rate thereof shall either (i) be adopted and a ce11ificd copy thereof filed with the Department on or 

before the first day of April, whereupon the Department shall proceed to administer and enforce this Section as of the first day 

of July next following the adoption and filing; or (ii) be adopted and a certified copy thereof filed with the Department on or ( 
5/5-1007. Horne Rule County Ser;ice Occupation Tax Law, !L ST CH 55 § 515-i007 

before the first day of October, ·whereupon the Department shall proceed to administer and enforce this Section as of the first 

day of Janumy 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. l 4. 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 \ I 5 15. l 1 j 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 

I 605/30. Taxes 

§ 30. Taxes. 

70 ILCS 1605/30 

v\lEST'S SMITH~HURD ILLINOIS COMPILED STATUTES ANNOTATED 

CHAPTER 70. SPECV\L DISTRJCTS 

PARK 

ACT 1605. METRO-EAST PARK AND RECREATION DISTRJCT ACT 

(a) The board shall impose a tax upon all persons engaged in the business of selling tangible personal property. other than 

personal property titled or registered with an agency of this State's government, at retail in the District on the gross receipts 

from the sales made in the course of business. This tax shall be imposed only at the rate of one-tenth of one per cent. 

This additional tax may not be imposed on the sales of food for human consumption that is to be consumed off the premises 

where it is sold (other than alcoholic beverages, soft drinks, and food which has been prepared for immediate consumption) 

and prescription and non-prescription medicines. 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 of the tax sha!l be collected and enforced by the Department of Revenue. The certificate of registration that is issued 

by the Department to a retailer under the Retailers' Occupation Tax Act [FNJ} shall pennit the retailer to engage in a business 

that is taxable without registering separately with the Department under an ordinance or resolution under this Section. The 

Department has foll power to administer and enforce this Section. to collect all taxes and penalties due under this Section. to 

dispose of taxes and penalties so collected in the manner provided in this Section, and to determine all rights to credit memoranda 

arising on account of the 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 of procedure as are prescribed in Sections 1, 1 a, 1 a-1, 1 d, I e. If, Ii, lj, I k, 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] (except provisions 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 if those provisions were set forth in this Section. 

Persons subject to any tax imposed under the authority granted in this Section may reimburse themselves for their sellers' tax 

liability by separately stating the tax as an additional charge, which charge may be stated in combination, in a single amount, 

with State tax which sellers are required to collect under the Use Tax Act, [Fl'\6] pursuant to such bracketed schedules as the 

Department may prescribe. 

Whenever the Department detem1ines that a refund should be made under this Section to a claimant instead of issuing a credit 

memorandum, the Department shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified 

and to the person named in the notification from the Department. The refund shall be paid by the State Treasurer out of the 

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 of making sales of service, who, as an incident to making those sales of 

service, transfer tangible personal property within the District as an incident to a sale of service. This tax may not be imposed 

on sales of food for human consumption that is to be consumed off the premises where it is sold ( other than alcoholic beverages, 

soft drinks, and food prepared for immediate consumption) and prescription and non-prescription medicines, 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 incident thereof shall be collected and enforced by the Department ofRevenue. 

The Department has full power to administer and enforce this subsection; to collect all taxes and penalties due hereunder; to 

dispose of laxes and penalties so collected in the manner hereinafter provided; and to determine all rights to credit memoranda 

arising on account of the erroneous payment of tax or penalty hereunder. In the administration of, and compliance with this 

subsection, the Department and persons who are subject to this paragraph shall (i) have the same 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 of terms. and (iii) employ the same modes of procedure as are prescribed in Sections 2 [F;-.;7J (except that the 

reference to State in the definition of supplier maintaining a place of business in this State shall mean the District), 2a, 2b, 2c. 

3 through 3-50 [Fl'<SJ (in respect to all pro\'isions therein other than the State rate of tax), 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 of taxes and penalties collected), 10, 

11. 12 [Fl\: 12] (except the reference therein to Section 2b of the 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 of the SerYice Occupation Tax Act [FJ\'J4] 

and 1he l,'nifonn Penalty t1nd lnterest Act. as fully as if those 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 of issuing a 

credit memorandum, the Department shall notify the State Comptroller. who shall cause the warrant to be drawn for the amount 

specified, and to the person named. in the notification from the Department. The refund shall be paid by the State Treasurer 

out of the State Metro-East Park and Recreation Distlict Fund. 

Nothing in this subsection shall be construed to authorize the board to impose a tax upon the privilege of engaging in any 

business which under the Constitution of the United States may not be made the subject 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 Sectiou to be deposited into the State Metro-East Park and Recreation District Fund, which shall be an unappropriated 

trust fund held outside of the State treasury. On or before the 25th day of each calendar month. the Department shall prepare 

and certify to the Comptroller the disbursement of stated sums of money pursuant to Section 35 of this Act to the District from 

which retailers have paid taxes or penalties to the Department during the second preceding calendar month. The amount to 

be paid 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 of refunds made 

during the second preceding calendar month by the Department on behalf of the 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 of the disbursement certification to the District provided for in this 

Section to be given to the Comptroller by the Department. the Comptroller shall cause the orders to be drawn for the respective 

amounts in accordance with directions contained in the certification. 

( d) For the purpose of determining whether a tax authorized under this Section is applicable, a retail sale by a producer of coal 

or another mineral mined in Illinois is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted 

from the earth. This paragraph does not apply to coal or another mineral when it is delivered or shipped by the seller to the 

purchaser at a point outside Illinois so that the sale is exempt under the United States Constitution as a sale in interstate or 

foreign commerce. 

(e) Nothing in this Section shall be construed to authorize the board to impose a tax upon the p1ivilege of engaging in any 

business that under the Constin1tion ofthe United States may not be made the subject of taxation by this State. 

(f) An ordinance imposing a tax under this Section or an ordinance extending the imposition of a tax to an additional cotmty or 

counties shall be ceiiified by the board and filed with the Department of Revenue either (i) on or before the first day of April, 

whereupon the Department shall proceed to administer and enforce the tax as of the first day of July next following the filing; 

or (ii) on or before the first day of October, whereupon the Department shall proceed to administer and enforce the tax as of 

the first day of January next following the filing. 

(g) When certifying lhe amount of a monthly disbursement to the District under this Section, the Department shall increase or 

decrease the amounts by an amount necessary to offset any misallocation of previous disbursements. The offset amount shall 

be the amount erroneously disbursed within the previous 6 months from the time a misallocation is 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 l 6. 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 Statutes Annotated 

Chapter 70. Special Districts 

Park 

Act 1 605. l\·Ietro-East Park and Recreation District Act (Refs & An nos) 

§ 30. Taxes. 

70 ILCS 1605/30 

1605/30. Taxes 

Effective: July 31, 2015 

Currentness 

(a) The board shall impose a tax upon all persons engaged in the business of selling tangible personal property, other than 

personal property titled or registered with an agency of this State's government, at retail in the District on the gross receipts 

from the sales made in the course of business. This tax shall be imposed only at the rate of one-tenth of one per cent. 

This additional tax may not be imposed on the sales of food for human consumption that is to be consumed off the premises 

where it is sold {other than alcoholic beverages. soft drinks, and food which has been prepared for immediate consumption) 

and prescription and non-prescription medicines, 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 of the tax shall be collected and enforced by the Department of Revenue. The certificate ofregistration that is issued 

by the Department to a retailer under the Retailers' Occupation Tax Act 1 shall permit the retailer to engage in a business that is 

taxable without registering separately ·with the Department under an ordinance or resolution under this Section. The Department 

has full power to administer and enforce this Section, to collect all taxes and penalties due under this Section, to dispose of 

taxes and penalties so collected in the manner provided in th.is Section, and to determine alt rights to credit memoranda arising 

on account of the 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 of procedure as are prescribed in Sections l, la, l a-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 of ta.-.,:), 2-12, 2-15 through 

2-70, 2a, 2b, 2c, 3 3 (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 1 a, 12, and 13 of the Retailers' Occupation Tax Act 4 and the Unifom1 

Penalty and Interest Act 5 as ifthose proYisions 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 co\lect under the Use Tax Act, 6 pursuant to such bracketed schedules as the Department 

may prescribe. 

Whenever the Department determines that a refund should be made under this Section to a claimant instead of issuing a credit 

memorandum, the Department shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified 

and to the person named in the notification from the Department. The refund shall be paid by the State Treasurer out of the 

State Metro~East Park and Recreation District Fund. 

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

(b) If a tax has been imposed under subsection (a), a service occupation tax shall also be imposed at the same rate upon all 

persons engaged. in the District, in the business of making sales of service, who, as an incident to making those sales of service. 

transfer tangible personal property within the District as an incident to a sale of se1Yice. This tax may not be imposed on 

sales of food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages. 

soft drinks. and food prepared for immediate consumption) and prescription and non-prescription medicines, drngs, medical 

appliances, and insulin, urine testing materials. syringes. and needles used by diabetics. The tax imposed under this subsection 

and all ciYil penalties that may be assessed as an incident thereof shall be collected and enforced by the Department of Revenue. 

The Department has full power to administer and enforce this subsection: to collect all taxes and penalties due hereunder; to 

dispose of taxes and penalties so collected in the manner hereinafter provided; and to detem1ine all rights to credit memoranda 

arising on account of the erroneous payment of tax or penalty hereunder. In the administration of, and compliance with this 

subsection, the Department and persons who are subject to this paragraph shall (i) 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) employ the same modes of procedure as are presc1ibed in Sections 2 7 ( except that the reference 

to State in the definition of supplier maintaining a place of business in this State shall mean the District), 2a, 2b, 2c, 3 through 

3-50x (in respect to all provisions therein other than the State rate of tax), 4 '' (except that the reference to the State shall be 

to the District), 5. 7. 8 111 (except that the jurisdiction 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 of taxes and penalties collected). !O, 11, 12 12 (except the reference 

therein to Section 2b of the Retailers' Occupation Tax Act), 13 13 {except that any reference to the State shall mean the District), 

Sections 15, 16. 17, 18, 19 and 20 of the Ser\"ice Occupation Tax Act J..t and the Unifonn Penalty and Interest Act, as fully 

as if those provisions were set forth herein. 

Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their 

serviceman's 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 

such bracket schedules as the Department may prescribe. 

Whenever the Depmiment determines that a refund should be made under this subsection to a claimant instead of issuing a 

credit memorandum. the Department shall notify the State Comptroller, who shall cause the warrant to be drawn for the amount 

specified. and 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 of the United States may not be made the subject of taxation by the State. 

(c) The Department shall immediately pay over to the Stale Treasurer, ex officio, as trnstee, all taxes and penalties collected 

under this Section to be deposited into the State Metro-East Park and Recreation District Fund, 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 order transferred, 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 Section during the second 

preceding calendar month for sales within a ST AR bond district. The Department shall make this certification only if the 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 Economy Act. 

I 

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

After the monthly transfer to the ST AR Bonds Re,·enue Fund, on or before the 25th day of each calendar month. the Depaitment 

shall prepare and certify to the Comptroller the disbursement of stated sums of money pursuant to Section 35 of this Act to 

the District from which retailers have paid taxes or penalties to the Department during the second preceding calendar month. 

The amount to be paid to the District shall be the amount (no! including credit memoranda) collected under this Section during 

the second preceding calendar month by the Department plus an amount the Department determines is necessary to offset 

any amounts that were erroneously paid to a different taxing body. and not including (i) an amount equal to the amount of 

refunds made during the second preceding calendar month by the Department on behalfofthe 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 after receipt 

by the Comptroller of the disbursement certification to the District provided for in this Section to be gi\·en to the Comptroller 

by the Department. the Comptroller shall cause the orders to be drawn for the respective amounts in accordance ,vith directions 

contained in the certification. 

(d) For the purpose of detennining \\"hether a tax authorized under this Section is applicable, a retail sale by a producer of coal or 

another mineral mined in Illinois is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from 

the earth. This paragraph does not apply to coal or another mineral when it is de!i,·ered or shipped by the seller to the purchaser at 

a point outside ll!inois 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 constrned to authorize the board to impose a tax upon the privilege of engaging in any 

business that under the Constitution of the United States may not be made the subject of taxation by this State. 

(f) An ordinance imposing a tax under this Section or an ordinance extending the imposition of a tax to an additional county or 

counties shall be certified by the board and filed with the Department of Revenue either (i) on or before the first day of April, 

wherenpon the Department shall proceed to administer and enforce the tax as of the first day of July next following the filing; 

or (ii) on or before the first day of October. whereupon the Department shall proceed to administer and enforce the tax as of 

the first day of January next following the filing. 

(g) When certifying the amount of a monthly disbursement to the District under this Section, the Depa1tment shall increase or 

decrease the amounts by an amount necessary to offset any misallocation of previous disbursements. The offset amount shall 

be the amount erroneously disbursed within the previous 6 months from the time a misallocation is discovered. 

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. !20'11.1201 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 J 15 !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 

Current through P.A. 99-487 of the 2015 Reg. Sess. 

( 

( 
( 

515-1006.5. Special County Retailers' Occupation Tax For Public ... , 55 JLCS 5/5-1006.5 

55 ILCS 5/5-1006.5 

fVEST'S SMITH-HURD ILLINOIS COMPILED STATUTES ANNOTA1ED 

CHAPTER 55. COUNTIES 

ACT 5. COUNTIES CODE 

ARTICLE 5. POWERS AND DUTIES OF COUNTY BOARDS 

DIVISION 5-1. IN GENERAL 

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

§ 5-1006.5. Special County Retailers' Occupation Tax For Public Safety. 

(a) The county board of any county may impose a tax upon all persons engaged in the business of sel!ing tangible personal 

property, other than personal property titled or registered with an agency of this State's government, at retail in the county on 

the gross receipts from the sales made in the course of business to proYide revenue to be used exclusively for public safety 

purposes in that county, ifa proposition for the tax has been submitted to the electors of that county and approved by a maj01ity 

of those voting on the question. If imposed, this tax shall be imposed only in one-quarter percent increments. By resolution, 

the county board may order the proposition lo be submitted at any election. The county clerk shall certify the question to the 

proper election authority, who shall submit the proposition at an election in accordance wilh the general election law. 

The proposition shall be in substantially the following fonn: 

"Shall (name of county) be authorized to impose a public safety tax at the rate of ... upon all persons engaged in the business 

of selling tangible personal property at retail in the county on gross receipt~ from the sales made in the course of their business 

to be used for crime pre\'ention, detention. and other public safety purposes?" 

Votes shall be recorded as Yes or No. If a majority of the electors voting on the proposition vote in favor of it. the county 

may impose the tax. 

This additional tax may not be imposed on the sales of food for human consumption that is to be consumed off the premises 

where it is sold (other than alcoholic beverages, soft drinks, and food which has been prepared for immediate consumption) 

and prescription and non-prescription medicines, drugs, medical appliances and insulin, urine testing materials. syringes, and 

needles used by diabetics. The tax imposed by a county under this Section and all civil penalties that may be assessed as an 

incident of the tax shall be collected and enforced by the Illinois Department of Revenue. TI1e certificate of registration 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 Department has full power to administer and enforce this Section, to collect all taxes and penalties due under this 

Section, to dispose of taxes and penalties so collected in the manner provided in this Section, and to detennine all rights to 

credit memoranda arising on account of the erroneous payment of a tax or penalty under this Section. In the administration of 

and compliance with this Section, the Department and persons who are subject to this Section shall (i) haxe the same rights, 

remedies, privileges, immunities, powers, and duties, (ii) be subject to the same conditions, restrictions, limitations, penalties, 

and definitions of tenns, and (iii) employ the same modes of procedure 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 of tax), 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 of the Retailers' Occupation Tax Act [FN4] and Section 3-7 of the 

Unifon11 Penalty and Interest Act [FN5] as if those provisions were set forth in this Section. 

Persons subject to any tax imposed under the authority granted in this Section may reimburse themselves for their sellers' tax 

liability by separately stating the tax as an additional charge, which charge may be stated in combination, in a single amount, 

with State tax which sellers are required to collect under the Use Tax Act, [Fl\'6] pursuant to such bracketed schedules as the 

Department may prescribe. 

Whenever the Depmtment 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 
5i5-1006.5. 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 of the 

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 of making sales of service, who, as an incident to making those sales of 

service. transfer tangible personal property within the county as an incident to a sale of service. This tax may not be imposed on 

sales of food for human consumption that is to be consumed off the premises where it is sold ( other than alcoholic beverages, 

soft drinks, and food prepared for immediate consumption) and prescription and non-prescription medicines, drugs. medical 

appliances and insulin, urine testing materials. syringes, and needles used by diabetics. The tax imposed under this subsection 

and all civil penalties that may be assessed as an incident thereof shall be collected and enforced by the Department 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 of the enoneous payment of tax 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) be subject to the same conditions, restrictions, limitations, penalties, exclusions. exemptions, 

and definitions of terms, and (iii) employ the same modes of procedure as are prescribed in Sections la-I, 2 (except that the 

reference to State in the definition of supplier maintaining a place ofbusiness in this State shall mean the county), 2a. 3 through 

3-50 (in respect to all proYisions therein other than the State rate of tax). 4 (except that the reference to the State shall be to the 

county), 5, 7. 8 ( except that the jurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the 

county), 9 (except as to the disposition of taxes and penalties collected, 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 of the Retailers' Occupation 

Tax Act), 13 ( except that any reference to the State shall mean the county), the first paragraph of Section 15. 16, 17, 18, 19 

and 20 of the Service Occupation Tax Act [Fl\7] and Section 3-7 of the Unifom1 Penalty and Interest Act, as fully as if those 

provisions were set forth herein. 

Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their 

serYiceman's tax liability by 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 may prescribe. 

Whenever the Department determines that a refund should be made under this subsection to a claimant instead of issuing a 

credit memorandum, the Department shall notify the State Comptroller, who shall cause the warrant to be drawn for the amount 

specified, and to the person named, in the notification from the Department. The refund shall be paid by the State Treasmer 

out of the County Public Safety Retailers' Occupation Fund. 

Nothing in this subsection shall be construed to authorize the county to impose a tax upon the privilege of engaging in any 

business which under the Constitution of the L'nited States may not be made the subject of taxation by the State. 

( c) The Department shall immediately pay over to the State Treasurer, Ex Officio, as trustee, all taxes and penalties collected 

under this Section to be deposited into the County Public Safety Retailers' Occupation Tax Fund, which is created in the State 

treasury. On or before the 25th day of each calendar month. the Department shall prepare and certify to the Comptroller the 

disbursement of stated sums of money to the counties from which retailers have paid taxes or penalties to the 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 of refunds 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 receipt by 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 of each year to 

each county that received more than £500.000 in disbursements under the preceding paragraph in the preceding calendar year. 

The allocation shall be in an amount equal to the average monthly distribution made to each such county under the preceding 

( 
5/5-1006.5. Special County Retailers' Occupation Tax For Public ... , 55 ILCS 5i5-10065 

paragraph during the preceding calendar year ( excluding the 2 mont11s of highest receipts). The distribution made in March of 

each year subsequent to the year in which an allocation was made pursuant to this paragraph and the preceding paragraph shall 

be reduced by the amount allocated and disbursed under this paragraph in the preceding calendar year. The Department shall 

prepare and certify to the Comptroller for disbursement the allocations made in accordance with this paragraph. 

( d) For the purpose of detennining the local governmental unit whose tax is applicable, a retail sale by a producer of coal or 

another mineral mined in Illinois is a sale at retail at the place where the coal or other mineral mined in !llinois 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 constrned to authorize a county to impose a tax upon the priYilege of engaging in any 

business that under the Constitution of the L'nited States may not be made the subject of taxation by this State. 

(f) The results of any election autl1orizing a proposition to impose a tax under this Section or effecting a change in the rate of 

tax shall be certified by the county clerk and filed with the Illinois Department of Revenue on or before the first day of June. 

The Illinois Department of ReYenue shall then proceed to administer and enforce this Section as of the first day of Januaiy 

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 of previous 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 may be cited as the "Special County Occupation Tax For Public Safety Law". 

CREDJT(S) 

1997 Electronic Pocket Part Update 

P.A. 86-962, Art. 5, § 5-1006.5, added by P.A. 89-107, § 10,eff. Jan. 1, 1996. Amended by P.A. 89-7 l 8. § 10, eff. March 7, 1997. 

[fi\1]35 ILCS 120 I et seq. 

[FA2]35 ILCS 120 1, 120· la, 120 I a-l, !20 Id, 120' le, 120 lf, 120· Ii, l 20 lj, 120 2, and 120 2-!0. 

[Fl\3]35 ILCS 120·2-40, l 20·2a. 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, l 20 6c, J 20·7, 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 1

1 et seq. 

[Fl\"7]35 !LCS 11 5· 15, l l 5 l 6, l l 5 1 7, J J 5.1 18, 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 detennined by 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 Statutes Annotated 

Chapter 55. Counties 

Act 5. Counties Code (Refs & Annos) 

Article 5. Powers and Duties of County 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, or Transportation 

Effective: July 31, 2015 

Currentness 

~ 5-1006.5. Special County Retailers' Occupation Tax For Public Safety, Public Facilities, or Transportation. 

(a) The county board of any county may impose a tax upon all persons engaged in the business of selling tangible personal 

property, other than personal property titled or registered with an agency of this State's government, at retail in the county on the 

gross receipts from the sales made in the course of business to provide revenue to be used exclusively for public safety, public 

facility, or transportation purposes in that county, if a proposition for the tax has been submitted to the electors of that county 

and approYed by a majority of those voting on the question. If imposed, this tax shall be imposed only in one-quarter percent 

increments. By resolution, the county board may order the proposition to be submitted at any election. If the tax is imposed 

for transportation purposes for expenditures for public highways or as authorized under the lllinois Highway Code, the county 

board must publish notice of the existence of its long-range highway transportation plan as required or described i11 Section 

5-301 of the Illinois Highway Code and must make the plan publicly :wailable prior to approval of the ordinance or resolution 

imposing the tax. If the tax is imposed for transportation purposes for expenditures for passenger rail transportation, the county 

board must publish notice of the existence of its long-range passenger rail transpo1iation plan and must make the plan publicly 

available prior to approval of the ordinance or resolution imposing the tax. 

Ifa tax is imposed for public facilities purposes, then the name of the project may be included in the proposition at the discretion 

of the county board as detem1ined in the 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 

accordance with the general election law. 

(I) The proposition for public safety purposes shall be in substantially the following form: 

"To pay for public safety purposes, shall (name of county) be authorized to impose an incn:asc on its share of local 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 of tangible personal 

property bought at retail." 

The county board may also opt to establish a sunset provision at which time the additional sales tax would cease being 

collected, if not tenninatcd earlier by a vote of the county board. If the county board votes to include a sunset provision, the 

proposition for public safety purposes shall be in substantially the following fom1: 
515-1006,5. Special County Retailers' Occupation Tax FoL.,. !L ST CH 55 § ... 

"To pay for public safety purposes, shall (name of county) be authorized to impose an increase on its share of local sales 

taxes by (insert rate) for a period not to exceed (insert number of years)?" 

As additional information on the ballot below the question shall appear the following: 

··This would mean that a consumer would pay an additional {insert amount) in sales tax for eve!)' S 100 of tangible personal 

property bought at retail. If imposed. the additional tax would cease being collected at the end of (insert number of years), 

ifnol terminated earlier by a \"otc of the county board." 

For the purposes of the paragraph. "public safety purposes" means crime prevention, detention, fire fighting, police. medical, 

ambulance. or other emergency 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 of the 99th General Assembly, Adams County may impose a public safety retailers' 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 of the 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 of county) be authorized to impose an 

increase on its share of local sales taxes by (insert rate)?" 

As additional infmmation on the ballot below the question shall appear the following: 

"This would mean that a consumer would pay an additional (insert amount) in sales tax for every 5100 of tangible personal 

property bought at retail." 

The county board may also opt to establish a sunset provision at which time the additional sales tax would cease being 

collected, if not terminated earlier by a vote of the county board. lfthe county board votes to include a sunset provision. the 

proposition for transportation purposes shall be in substantially the following fom1: 

"To pay for road improvements and other transportation purposes, shall (name of county) be authorized to impose an increase 

on its share of local sales taxes by (insert rate) for a period not to exceed (insert number of years)?" 

As additional information on the ballot below the question sha11 app~ar the following: 

·'This would mean that a consumer would pay an additional (inse11 amount) in sales tax for every S 100 of tangible persona! 

property bought at retail. If imposed, the additional tax would cease being collected at the end of (insert number of years), 

if not terminated earlier by a vote of the county board." 

For the purposes of this paragraph. transportation purposes means constn1ction, maintenance, operation, and improvement 

of public highways, any other purpose 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 of county) be authorized to impose an increase on its share of local sales 

taxes by (insert rate)?" 

As additional information on the ballot below the question shall appear the following: 

"This would mean that a consumer would pay an additional (insert amount) in sales tax for e\·ery 5100 of tangible personal 

property bought 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, if not terminated earlier by a vote of the county board. If the county board votes to include a sunset provision. the 

proposition for public facilities purposes shall be in substantially the following fonn: 

"To pay for public facilities purposes, shall (name of county) be authorized to impose an increase on its share oflocal sales 

taxes by (insert rate) for a period not to exceed (insert number of years)?" 

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 of years), 

if not terminated earlier by a vote of the county board:· 

For purposes of this Section, ·•public facilities purposes" means the acquisition, development, constmction, reconstruction, 

rehabilitation, improvement, financing, architectural planning, and installation of capital facilities consisting of buildings, 

structures, and durable equipment and for the acquisition and improvement of real property and interest in real property 

required, or expected to be required, in connection with lhc public facilities, for use by the county for the furnishing of 

governmental services to its citizens. including but not limited to museums and nursing homes. 

The votes shall be recorded as "'Yes"' or "No". 

If a majority of the electors voting on the proposition vote in favor of it, the county may impose the tax. A county may not 

submit more than one proposition authorized by this Section to the electors at any one time. 

This additional tax may not be imposed on the sales of food for human consumption that is to be consumed off the premises 

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 

incident ofthe tax shall be collected and enforced by the Illinois Department of Revenue and deposited into a special fund created 

for that purpose. The certificate of registration that is issued by the Department to a retailer under the Retailers' Occupation Tax 

Act I shall pennit the retailer to engage in a business that is taxable without registering separately with the Department under an 

ordinance or resolution under this Section. The Department has full power to administer and enforce this Section, to collect all 

taxes and penalties due under this Section, to dispose of taxes and penalties so collected in the manner proYided in this Section, 

and to determine all 1ights to credit memoranda arising on account of the 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, privileges, immunities, powers, and duties, (ii) be subject to the same conditions, 

restrictions, limitations, penalties, and definitions of terms, and (iii) employ the same modes of procedure as are prescribed in 
5.15-1006.5. 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. 2 through 2-70:::: (in respect to all proYisions contained in those Sections other 

than the State rate of tax), 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, I la, 12, and 13 of the 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 by separately stating the tax as an additional charge. which charge may be stated in combination, in a single amount, \Vith 

State tax which sellers are required to collect under the Use Tax Act, 6 pursuant to such bracketed schedules as tlle Department 

may prescribe. 

Whenever the Depanment detem1ines that a refund should be made under this Section to a claimant instead of issuing a credit 

memorandum. the Depmiment shall notify the State Comptroller. v,rho shall cause the order to be drawn for the amount specified 

and to the person named in the notification from the Department. The refond shall be paid by the State Treasurer out of the 

County Public Safety or Transportation Retailers' Occupation Tax Fund. 

(b) If a tax has been imposed under subsection (a). a service occupation tax shall also be imposed at the same rate upon al! 

persons engaged, in the county, in the business of making sales of service, who. as an incident to making those sales of service, 

transfer tangible personal property within the county as an incident to a sale ofsen,ice. This tax may not be imposed on sales of 

food for human consumption that is to be consumed off the premises where it is sold ( other than alcoholic beverages. soft drinks, 

and food prepared for immediate consumption) and prescription and non-prescription medicines, drugs, medical appliances 

and insulin, urine testing materials, syringes, and needles used by diabetics. The tax imposed under this subsection and all 

civil penalties that may be assessed as an incident thereof shall be collected and enforced by the Department of Revenue. 

The Department has full power to administer and enforce this subsection; to collect al! taxes and penalties due hereunder; to 

dispose of taxes and penalties so collected in the manner hereinafter pro\•ided; and to detennine all rights to credit memoranda 

arising on account of the erroneous payment of tax or penalty hereunder. In the administration of, and compliance with this 

subsection. the Department and persons who are subject to this paragraph shal! (i) have the same rights, remedies, privileges, 

immunities, powers, and duties, (ii) be subject to the same conditions, restrictions, limitations, penalties, exclusions. exemptions, 

and definitions of tern1s. and (iii) employ the same modes of procedure as are prescribed in Sections 2 (except that the reference 

to State in the definition of supplier maintaining a place 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 of tax). 4 (except that the reference to the State shall be to 

the county), 5, 7. 8 (except that the jurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be 

the county), 9 (except as to the disposition of taxes and penalties collected), 1 0, 11, 12 ( except the reference therein to Section 

2b of the Retailers' Occupation Tax Act), 13 (except that any reference to the State shall mean the county), Section 15, 16, 

17, 18, 19 and 20 of the Service Occupation Tax Act and Section 3-7 of the Uniform Penalty and Interest Act,)( as fully as 

if those provisions were set forth herein. 

Persons subject to any tax imposed under 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 of issuing a 

credit memorandum, the Department shall notify the State Comptroller, who shall cause the warrant to be drawn for the amount 

specified, and to the person named, in the notification from the Department. The refund shall be paid by the State Treasurer out 

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 of engaging in any 

business which under the Constitution of the United States may not be made the subject of taxation by the State. 

(c) The Department shall immediately pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected 

under this Section to be deposited into the County Public Safety or Transportation Retailers' Occupation Tax Fund, which shall 

be an unappropriated trnst fond held outside ofthe State treasury. 

As soon as possible after the first day of each month, beginning Januaiy 1. 2011. upon certification of the Department of 

Revenue. the Comptroller shall order transferred, and the Treasurer shall transfer. to the ST AR Bonds Revenue Fund the local 

sales tax increment, as defined in the Innovation DeYelopment and Economy Act. collected under this Section during the second 

preceding calendar month for sales within a ST AR bond district. 

After tlie monthly transfer to the ST AR Bonds Revenue Fund, on or before the 25th day of each calendar month, the Department 

shall prepare and ce11ify to the Comptroller the disbursement of stated sums of money to the counties from which retailers have 

paid taxes or penalties to the Department during the second preceding calendar month. The amount to be paid to each county, 

and deposited by the county into its special fund created for the purposes of this Section, shall be the amount (not including 

credit memoranda) collected under this Section during the second preceding calendar month by the Department plus an amount 

the Department determines is necessary to offset any amounts that were erroneously paid to a different taxing body, and not 

including (i) an amount equal to the amount of refunds made during the second preceding calendar month by the Department 

on behalf of the county, (ii) any amount that the Department detennines is necessary to offset any amounts that were payable to 

a different taxing body bm were erroneously paid to the county, and (iii) any amounts that are transferred to the ST AR Bonds 

Re\·em1e Fund. Within 10 days after receipt by the Comptroller of the 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 of each year to 

each county that receiwd 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 average monthly distribution made to each such county under the preceding 

paragraph during the preceding calendar year ( excluding the 2 months of highest receipts). The distribution made in March of 

each year subsequent to the year in which an allocation was made pursuant to this paragraph and the preceding paragraph shall 

be reduced by the amount allocated and disbursed under this paragraph in the preceding calendar year. The Department shall 

prepare and certify to the Comptroller for disbursement the allocations made in accordance with this paragraph. 

A county may direct, by ordinance, that all or a p011ion of the taxes and penalties collected under the Special County Retailers' 

Occupation Tax For Public Safety or Transportation be deposited into the Transportation Development Pm1nership Trust Fund. 

(d) For the purpose of detennining the !ocal governmental unit whose tax is applicable, a retail sale by a producer of coal or 

another minernl mined in fllinois is a sale at retail al 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 111inois 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 a county to impose a tax upon the privilege of engaging in any 

business that under the Constitution of the United States may not be made the subject of taxation by this State. 
515-1006.5. Special County Retailers' Occupation Tax For .... IL ST CH 55 § ... 

( e-5) If a county imposes a tax under this Section, the county board may, by ordinance, discontinue or lower the rate of the tax. 

If the county board lowers the tax rate or discontinues the tax. a referendum must be held in accordance with subsection (a) of 

this Section in order to increase the rate of the tax or to reimpose the discontinued tax. 

(f) Beginning April I, 1998 and through December 31. 2013, the results of any election authorizing a proposition to impose 

a tax under this Section or effecting a change in the rate of tax, or any ordinance lowering the rate or discontinuing the tax, 

shall be ce11ified by the county clerk and filed with the Illinois Department of Re\"enue either (i) on or before the fin;t day of 

April, \vhereupon the Department shall proceed to administer and enforce the tax as of the first day of July next following the 

filing; or (ii) on or before the first day of October. whereupon the Department shall proceed to administer and enforce the tax 

as ofthe first day of January next following the filing. 

Beginning January ! , 20 I 4, the results of any election authorizing a proposition to impose a tax under this Section or effecting 

an increase in the rate of tax, along with the ordinance adopted to impose the tax or increase the rate of the tax, or nny ordinance 

adopted to lower the rate or discontinue the tax. shall be certified by the county clerk and filed with the Illinois Department of 

Revenue either (i) on or before the first day of May. whereupon the Department shall proceed to administer and enforce the tax 

as of the first day of July next following the adoption and filing: or (ii) on or before the first day of October, whereupon the 

Department shall proceed to administer and enforce the tax as of the first day of January next following the adoption and filing. 

(g) \Vhen certifying the amount of a monthly disbursement to a county under this Section, the Department shall increase or 

decrease the amounts by an amount necessary to offset any miscalculation of previous disbursements. The offset amount shall 

be the amount erroneously disbursed within the previous 6 months from the time a miscalculation is discovered. 

(h) This Section may be cited as the ··special County Occupation Tax For Public Safety. Public Facilities, or Transportation 

Law"'. 

(i) For purposes of this Section, ··public safety" includes, but is not limited to, crime prevention, detention. fire fighting, police, 

medical, ambulance, or other emergency services. The county may shan! tax proceeds received under this Section for public 

safety purposes. including proceeds received before August 4, 2009 (the cffecfrve date of Public 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 of public highways, any other purpose for which a county may 

expend funds under the Illinois Highway Code, and passenger rail transportation. For the purposes of this Section, "public 

facilities purposes·· includes, but is not limited to, the acquisition, development, construction, reconstruction, rehabilitation, 

improvement, financing, architectural planning, and installation of capital facilities consisting of buildings, strnctures, and 

durable equipment and for the acquisition and improvement of real property and interest in real property required, or expected 

to be required, in connection with the public facilities, for use by the county for the furnishing of governmental services to its 

citizens, including but not limited to museums and nursing homes. 

(j) The Department may promulgate rules 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 l 5. 115 I 6, l 15 17, l 15 J 8, 1 J 5 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 IMPACT FEE LAW 

12513 J 0. E1wironme111al impact fee; imposition 

~ 310. Environmental impact fee: imposition. Beginning January J, 1996, all receivers of fuel are subject to an environmental 

impact fee of 560 per 7 .500 gallons of fuel. or an equivalent amount per fraction thereof, that is sold or used 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 corresponding provisions of Article 3 of Public Act 89-428. Em·ironmental impact fees paid 

under that Article 3 shall satisfy the receiver's corresponding liability under this Law. 

A receiver of fuels is subject to the fee without regard to whether the fuel is intended to be used for operation of moton·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 per year, located in a city of more than l.000,000 inhabitants, for sale to or 

use by holders of certificates of public convenience and necessity or foreign air canier pennits. issued by the United States 

Department of Transportation, and their air carrier affiliates, or upon the imp011ation or receipt of aYiation 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 imposed upon the importation or receipt of diesel fuel by a rail carrier registered under Section l 8c-7201 

of the lllinois Vehicle Code [FN I] and used directly in railroad operations. In addition. no fee may be imposed when the sale is 

made with delive1y to a purchaser outside this State or when the 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 of ships, barges, or vessels, that are used 

primarily in or for the transportation of property in interstate commerce for hire on riYers bordering on this State, if the 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 thereof shall 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 of Act, see 4 !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, in the second paragraph. inserted the fiHh sentence. 

See 5 ILCS 70·6 as to the effect of( I) more than one amendment of a section at the same session of the General Assembly or 

(2) 1'No or more acts relating to the same subject matter enacted by 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 Statutes Annotated 

Chapter . .p5. Emironmental Safety 

Act 12.5. Emironmental Impact Fee Lavv (Refs &.Annos) 

415 ILCS 125/310 

125/310. Ernironmental impact fee; imposition 

EffectiYe: August 2, 2001 

Currentness 

§ 310. Environmental impact fee; imposition. Beginning January 1. 1996, all receivers of fuel are subject to an environmental 

impact fee ofS60 per 7,500 gallons offuel, or an equivalent amount per fraction thereof, that is sold or used 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 under the c01responding proYisions of Article 3 of Public Act 89-428. Environmental impact fees paid 

under that Article 3 shall satisfy the recei\'er's coffesponding liability under this Law. 

A receiver of fuels is subject to the fee without regard to whether the fuel is intended to be used for operation of motor vehicles 

on the public highways and \Vaters. However, no fee shall be imposed upon the importation or receipt of aviation fuels and 

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 com·enience and necessity or foreign air carrier permits, issued by the United States 

Department of Transpo1iation, and their air emrier affiliates, or upon the importation or receipt of aviation fuels and kerosene 

at facilities owned or leased by those certificate or pennit holders and used in their activities at an airport described above. In 

( addition, no fee may be imposed upon the importation or receipt of diesel foci sold to or used by a rail carrier registered under 

Section I 8c-720 I of the Illinois Vehicle Code I or otherwise recognized by the Illinois Commerce Commission as a rail 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 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 of ships, barges, or vessels, that are used primarily in or for the 

transportation of property in interstate commerce for hire on rivers bordering on this State. if the diesel foe! is delivered by a 

licensed receiver to the purchaser's barge, ship, or vessel while it is afloat upon that bordering river. A specific notation 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 OF ACT 

<For repeal of Act. see 415 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) 

Excise Taxes 

Act 50.5. Motor Fuel Tax Law (Refs & r\nnos) 

35 ILCS 505/2a 

Formerly cited as IL ST CH 120 '1418a 

505/2a. Tax on receiwrs offucl for sale or use; imposition 

EffectiYe: August 10, 2009 

Currentness 

§ 2a. Except as hereinafter provided. on and after January 1, 1990 and before January 1, 2025, a tax of three-tenths of a cent 

per gallon is imposed upon the privilege of being a receiver in this State of fuel for sale or use. 

The tax sha11 be paid by the recei\'cr in this State who first sells or uses fuel. In the case of a 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 of this Act. 

( and aYiation fuels, home heating oil and kerosene, but excluding liquified petroleum gases, is subject to tax without regard to 

whether the fuel is intended to be used for operation of motor whicles on the public highways and waters. However, no such 

tax sh al! be imposed upon the importation or receipt of aviation fuels and kerosene at airports with over 300.000 operations per 

year, for years prior lo 1991, and over 170,000 operations per year beginning in 1991, 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 carrier permits, issued 

by the United States Depatimcnt of Transportation, and their air carrier affiliates, or upon the importation or receipt of aviation 

fuels and kerosene at facilities owned or leased by those certificate or pennit holders and used in their activities at an airport 

described aboYe. In addition, no such tax shall be imposed upon the importation or receipt of diesel fuel sold to or used by a rail 

carrier registered pursuant to Section I Sc-720 I of the !llinois Vehicle Code 1 or othenvise recognized by the 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 or used in the operation of ships, barges, or vessels, 

that are used primarily in or for the transportation of property in interstate commerce for hire on rivers bordering on this State, 

if the diesel fuel is delivered by a licensed recei\·er to the purchaser's barge, ship, or vessel while it is afloat upon that bordering 

river. A specific notation thereof shall 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. Amended by 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 of fuel 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 of the 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 Statutes Annotaled 

Chapter 35. Revenue (Refs & Annos) 

Excise Taxes 

Act 505. Motor Fuel Tax La,Y (Refs & Annos) 

35 ILCS 505/2a 

Formerly cited as IL ST CH 120 "418a 

505/2a. Tax on receiwrs of fuel for sale or use; imposition 

Effectiw: August 10, 2009 

Currentness 

§ 2a. Except as hereinafter provided, on and after Janua1y !, 1990 and before January I. 2025. a tax of three-tenths ofa cent 

per gallon is imposed upon the privilege of being a receiYer in this State of f11el for sale or use. 

The tax shall be paid by the receiver in this State who first sells or uses fuel. In the case of a sale, the tax shall be stated as 

a separate item on the inYoice. 

For the purpose of the tax imposed by this Section, being a receiver of"motor fuel'' as defined by Section I.I of this 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 of motor Yehicles on the public highways and waters. !Iowever, no such 

tax shall be imposed upon the importation or receipt of aviation foels and kerosene at airports with O\'er 300,000 operations per 

year, for years prior to 1991, and O\"er 170,000 operations per year beginning in 199 I, located in a city of more than 1,000,000 

inhabitants for sale to or use by holders of ce11ificates of public convenience and necessity or foreign air carrier permits, issued 

by the United States Department of Transportation. and their air carrier affiliates, or upon the importation or receipt of a\'iation 

fuels and kerosene at facilities owned or leased by those certificate or pern1it holders and used in their activities at an airpo1t 

described above. In addition. no such tax shall be imposed upon the importation or receipt of diesel fuel sold to or used by a rail 

carrier registered pursuant to Section] Sc-7201 of the Illinois Vehicle Code I or otherwise recognized by the 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 a person holding a valid license as 

a receiver. In addition, no tax shall be imposed upon diesel fuel consumed or used in the operation of ships, barges, or vessels, 

that are used primarily in or for the transportation of property in interstate commerce for hire on 1iYers bordering on this State. 

if the diesel foe] is delivered by a licensed receiver to the purchaser's barge, ship, or \'essel while it is afloat upon that bordering 

river. A specific notation thereof shall be made on the invoices or sales slips co\'ering each sale. 

Credits 

Laws 1929, p. 625, § 2a, added by 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, § l 0. 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 l 8a. 

Footnotes 
50512a. Tm< on receivers of fuel for sale or use: imposition. IL ST CH 35 § 50512a 

(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 STATUTES ANNOTATED 

CHAPTER 55. COUNTIES 

ACT 5. COUNTIES CODE 

ARTICLE 5- PO\NERS AND DUTIES OF COUNTY BOARDS 

DIVISION 5-1. IN GENERAL 

5.15-1008.5. Use and occupation taxes 

§ 5-1008.5. Use and occupation taxes. 

(a) The Rock Island County Board may adopt a resolution that authorizes a referendum on the question of whether the 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 

of the economic development activities of Rock 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 of the 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 of I%, for the sole purpose of economic de,·e!opment activities, including creation and retention of job opporhmities, 

support of affordable housing opportunities. and enhancement of quality of Jiff improYements? 

Votes shall be recorded as "yes" or '·no ... If a majority of al! votes cast on the proposition are in favor of the proposition, the 

cotmty is authorized to impose the tax. 

(b) The county shall impose the retailers' occupation tax upon all persons engaged in the business of selling tangible personal 

property 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 not be imposed on the sale of food for human consumption that is 

to be consumed off the premises where it is sold ( other than alcoholic beverages, soft 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. The tax imposed unda this Section and all ch·il penallies that may be 

assessed as an incident of the tax shall be collected and enforced by the Department of Revenue. The Department has full power 

to administer a11d 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 of the enoneous payment of tax or penalty under this Section. 

In the administration of, and compliance with, this Section. the Department and persons who are subject to this Section shall (i) 

have the same rights, remedies, privileges, immunities, powers and duties, (ii) be subject to the same conditions, restrictions, 

limitations, penalties, exclusions, exemptions. and definitions of te1111s, and (iii) employ the same modes of procedure as are 

prescribed in Sections 1, la. 1 a-1. I c, Id, 1 e, If, Ii, lj, I k, Im. In, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions other than the 

State rate of tax), 2-15 through 2-70. 2a, 2b, 2c. 3 (except as to the disposition of taxes 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, I la, !2, and 

l3 of the Retailers' Occupation Tax Act [FN2] and Section 3-7 of the Uniform Penalty and Interest Act, [Ft\3] as fully as if 

those provisions were set forth in this subsection. 

Persons subject to any tax imposed under this subsection 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 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 of issuing a 

credit memorandum, the Department shall notify the State Complro!ler, who shall cause the warrant to be drawn for the amount 

specified, and to the person named, in the notification from the Department. The refund shall be paid by the State Treasurer 

out of the tax fund referenced under paragraph (g) of this 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 

For the purpose of detemtining whether a tax authorized under this Section is applicable, a retail sale, by a producer of coal or 

another mineral mined in Illinois. is a sale at retail at the place where the coal or other mineral mined in lllinois is extracted from 

tl1e earth. This paragraph does not apply to coal or another mineral when it is deli\'ered or shipped by the seller to the purchaser 

at a point outside Illinois so that the sale is exempt under the federal Constih1tion as a sale in interstate or foreign commerce. 

Nothing in this Section shall be construed to authorize the county to impose a tax upon the privilege of engaging in any business 

that under the Constih1tion of the C"nited States may not be made the subject of taxation by this State. 

{c} If a 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 of sen-ice. who. as an incident to making those sales of 

service, transfer tangible personal property within the county as an incident to a sale of scrYice. This additional tax may not be 

imposed on the sale of food for human consumption that is to be consumed off the premises where it is sold ( other than alcoholic 

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 under this subsection and all civil penalties that may be assessed as an incident of the tax shall be collected and enforced 

by the Department of Revenue. The Department has full power to administer and enforce this paragraph: to collect all taxes and 

penalties due under this Section: to dispose of tax.es and penalties so collected in the manner provided in this Section: and to 

detennine all rights to credit memoranda arising on account of the en-oneous payment of tax or penalty under this 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 of procedure as are 

prescribed in Sections 2 ( except that the reference to State in the definition of supplier maintaining a place of business in this 

State shall mean the county), 2a, 2b, 3 through 3-55 (in respect to all provisions other than the State rate of tax), 4 (except that 

the reference to the State shall be to the county). 5, 7, 8 (except that the jurisdiction to which the tax shall be a debt to the 

extent indicated in that Section 8 shall be the county), 9 (except as to the disposition of taxes and penalties collected, 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 of the Retailers' Occupation Tax Act), 13 (except that any reference to the State shall mean the county). 15, 16, ( 

17. 18, 19 and 20 of the Service Occupation Tax Act [FNSJ and Section 3-7 of the Unifonn Penalty and Interest Act, as fully 

as if those 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 prescribed by the Department. 

Whene\'er the Department detennines that a refund should be made under this subsection to a claimant instead of issuing a 

credit memorandum, the Depaitment 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 Depm1ment. The refund shall be paid by the State Treasurer 

out of the tax fond referenced under paragraph (g) of this Section. 

Nothing in this paragraph shall be construed to authorize the county to impose a tax upon the privilege of engaging in any 

business that under the Constitution of the United States may not be made the subject of taxation by the 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 of tangible 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 of this 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. 

"Selling price" is defined as in the Use Tax Act. [F\"7] The tax shall be collected from persons whose Illinois address for titling 

or registration purposes is given as being in the county. The tax shall be collected by the Department of Revenue for the county. 

The tax must be paid to the State, or an exemption determination must be obtained from the Depmtment of Revenue, before 

the title or ce1tificate of registration for the property may be issued. The tax or proof of exemption may be transmitted to the 

Department by way of the State agency with which, or the State officer with whom. the tangible personal property must be titled 
( 

5!5·1008.5. Usa and occupation taxes, 55 lLCS 515·1008.5 

or registered if the Department and the State agency or State officer detennine that this procedure will expedite the processing 

of applications for title or registration. 

The Department has full power to administer and enforce this paragraph: to collect all taxes, penalties, and interest due under 

this Section: to dispose of taxes, 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 of the erroneous payment of tax, 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) employ the same modes 

of procedure as are prescribed in Sections 2 ( except the definition of"retailer maintaining a place or business 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 the jurisdiction 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 of the L'niform Penalty and Interest Act, that are 

not inconsistelll with 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 of issuing a 

credit memorandum, the Department shall notify the State Comptroller, \Vho shall cause the order to be drawn for the amount 

specified. and to the person named, in the notification from the Department. The refund shall be paid by the State Treasurer 

out of the tax fond referenced under paragraph (g) of this Section. 

( e) A certificate ofregistration issued by the State Department ofRevenue to a retailer under the Retailers' Occupation Tax Act 

[F!\"9] or under the Service Occupation Tax [Fl\" 10] Act shall permit the registrant to engage in a business that is taxed under 

the tax imposed under paragraphs (b ), ( c ), or ( d) of this Section and no additional registration shall be required. A certificate 

issued under the Use Tax Act or the Service Use Tax Act shall be applicable with regard to any tax imposed under paragraph 

( c) of this Section. 

(f) The results of any election authorizing a proposition to impose a tax under this Section or effecting a change in the rate 

of lax 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 of the ordinance filed with the Department on or before the first day or October. Afler proper 

receipt of the ce11ifications, the Department shall proceed to administer and enforce this Section as of the first day of January 

next following the adoption and filing. 

(g) The Department of Revenue 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 or before the 25th day of each calendar month. the Department of Revenue shall prepare and certify to the 

Comptroller of the State of11\inois the amount to be paid to the county, which shall be the balance in the fund, less any amount 

detennined by the Department to be necessaiy for the payment of refunds. Within 10 days after receipt by the Comptroller 

ofrhe certification of the 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 imposed under this 

Section shall be used only for the economic development activities of the county and communities located within the county. 

(h) When certifying the amount of a monthly disbursement to the county under this Section, the Department shal! increase or 

decrease the amounts by an amount necessary to offset any miscalculation of previous disbursements. The offset amount shall 

be the amount erroneously disbursed within the previous 6 months from the time a miscalculation is discovered. 

(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, l2U1le, !201Jf. 120.'li, 120.i!j, J20 1lk, 1'..:0dm, 120:ln, no12, 

l 20-'2-5, 120:2-5.5, 120. 2-10, 120,..2-15 to I 2(J.!2-70, 120 2a, I 20t2b, I 20-'2c, 120.13, 120 "4, 120,5, I 20:5a, l 2(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 I a. J 20· l 2. and 120 l 3. 

[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 Sta lutes Annotated 

( 

Chapter 55. Counties 

Act 5. Counties Code (Refs & Annas) 

Alticle 5. PowE'rs and Duties of County Boards 

Dh-ision 5-1. In General 

55 ILCS 5/5-1008.5 

5/5-1008.5. Use and ocrnpation taxes 

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 of whether the county 

shall be authorized to impose a retailers' occupation tax, a service occupation tax, and a use tax at a rate of Vi of 1 % on behalf 

of the economic development activities of Rock 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 of the county al the next 

regularly scheduled election in accordance with the general election law. 1 The question shall be in substantially the following 

form: 

Shall Rock Island County be authorized to impose a retailers' occupation tax, a service occupation tax, and a use tax at the rate 

of Y4 of 1 % for the sole purpose of economic development activities, including creation and retention of job opportunities, 

suppmi of affordable housing opportunities. and enhancement of quality of life improvements? 

Votes shall be recorded as "yes"' or "no··. If a majority of all votes cast on the proposition are in favor of the proposition, the 

county is authorized to impose the tax. 

(b) The county shall impose the retailers' occupation tax upon all persons engaged in the business of selling 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 not be imposed on the sale of food for human consumption that is 

to be consumed off the premises where it is sold ( other than alcoholic beverages, soft drinks, and food that has been prepared 

for immediate consumption) and prescription and non-prescription medicines, drngs, medical appliances and insulin, urine 

testing materials, syringes, and needles used by diabetics. The tax imposed under this Section and al! civil penalties that may be 

assessed as an incident of the tax shall be collected and enforced by the Department of Revenue. The- Department has 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 of the erroneous payment of lax or penalty under 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 of tenns, and (iii) employ the same modes of procedure as are 

prescribed in Sections 1, 1 a, 1 a-1, 1 c, 1 d, 1 e, If, Ii, lj, lk, lm, ln, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions otherthan the 

State rate of tax), 2-15 through 2-70, 2a. 2b, 2c, 3 (except as to the disposition of taxes 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, I la, 12, and 13 

of the Retailers' Occupation Tax. Act 2 and Section 3-7 of the Unifonn Penalty and Interest Act, 3 as fully as if those provisions 

were set forth 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 under this 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 of issuing a 

credit memorandum, the Department shall notify the State Comptroller. who shall cause the warrant to be drawn for the amount 

specified, and to the person named, in the notification from the Department. The refund shall be paid by the State Treasurer 

out of the tax fund referenced under paragraph (g) of this Section. 

lfa 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. 

For the purpose of determining whether a tax authorized under this Section is applicable. a retail sale, by a producer of coal or 

another mineral mined in Illinois, is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from 

the em1h. This paragraph does not apply to coal or another mineral 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 or foreign commerce. 

l\"othing in this Section shall be construed to authorize the county to impose a tax upon the pri,,ilege of engaging in any business 

that under the Constitution of the United States may not be made the subject of taxation by this State. 

( c) If a tax has been imposed under subsection (b), a ser\'ice occupation tax shall also be imposed at the same rate upon all persons 

engaged, in the county, in the business of making sales of service. who. as an incident to making those sales of service, transfer 

tangible personal property within the county as an incident to a sale of service. This additional tax may not be imposed on the 

sale of food for human consumption that is to be consumed off the premises where it is sold ( other than alcoholic beverages, soft 

drinks, and food lhat 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 under this 

subsection and all civil penalties that may be assessed as an incident of the tax shall be collected and enforced by the Department 

ofReYcnue. The Department has full power to administer and enforce this paragraph: to collect all taxes and penalties due under 

this Section: to dispose of taxes and penalties so collected in the manner provided in this Section: and to determine al! rights to 

credit memoranda arising on account of the erroneous payment of tax or penalty under this Section. Jn the 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 of tenns, and (iii) employ the same modes of procedure as are prescribed in Sections 

2 (except that the reference to State in the definition of supplier maintaining a place of business in this State shall mean the 

county), 2a, 2b. 3 through 3-55 (in respect to all provisions other than the State rate of tax), 4 (except that the reference to 

the State shall be to the county), 5, 7, 8 ( except that the jurisdiction to which the tax shall be a debt to the extent indicated in 

that Section 8 shall be the county), 9 (except as to the disposition 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 4 (except the reference to Section 2b of the 

Retailers' Occupation Tax Act), 13 (except that any reference to the State shall mean the county), 15, 16, 17, 18, !9 and 20 

of the Service Occupation Tax Act 5 and Section 3-7 of the Unifom1 Penalty and Interest Act, us fully as if those 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 schedules prescribed 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 of issuing a 

credit memorandum. the Department shall notify the State Comptroller, who shall cause the warrant to 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 of the tax fund referenced under paragraph (g) of this Section. 

Nothing in this paragraph shall be constrned to authorize the county to impose a tax upon the privilege of engaging in any 

business that under the Constitution oft he l,""nited States may not be made the subject of taxation by the 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 of tangible 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 of this State's government. This additional tax may 

not be imposed on the sale of-food for human consumption that is to be consumed off the premises where it is sold (other 

than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and prescription and 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 collected by the Department of Revenue for the county. 

The tax must be paid to the State, or an exemption detennination must be obtained from the Department of Revenue, before 

the title or certificate of registration for the property may be issued. The tax or proof of exemption may be transmitted to the 

Department by way of the Stale agency with which, or the State officer with whom, the tangible personal property must be titled 

or registered if the Department and the State agency or State officer detennine that this procedure will expedite the processing 

of applications for title or registration. 

The Department has full power to administer and enforce this paragraph: to collect all taxes, penalties, and interest due under this 

Section; to dispose of taxes, penalties. and interest so collected i11 the manner provided in this Section; and to determine all rights 

to credit memoranda or refunds arising on account of the erroneous payment of tax, penalty. or interest under 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 of terms, and (iii) employ the same modes of procedure as are 

prescribed in Sections 2 (except the definition of·'retailer maintaining a place of business in this State"), 3, 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 of the Use Tax Act g and Section 3-7 of the Uniform Penalty and Interest Act. that are not inconsistent with this 

paragraph. as fully as if those provisions were set forth in this subsection. 

Whenever the Department detennines that a refond should be made under this subsection to a claimant instead of issuing a 

credit memorandum, the Department shall notify the State Comptroller, who shall cause the 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) of this Section. 

( e) A certificate of registration issued by the State Department of Revenue to a retailer under the Retailers' Occupation Tax Act 9 

or under the Service Occupation Tax tO Act shall permit the registrant to engage in a business that is taxed under the tax imposed 

under paragraphs (b ), ( c ), or (d) of this Section and no additional registration shall be required. A certificate issued under the 

Use Tax Act or the Service Use Tax Act shall be applicable with regard to any tax imposed under paragraph (c) of this Section. 

(f) The results of any election authorizing a proposition to impose a tax under this Section or etfocting a change in the rate 

of tax shall be certified by the proper election authorities and filed with the Illinois Department on or before the first day of 

r -!;.., t 
5i5·1008.5. 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 of tax under this Section shall be 

adopted and a certified copy of the ordinance filed with the Department on or before the first day of October. After proper ( 

receipt ofthc ce1iifications, the Department shall proceed to administer and enforce this Section as of the first day of Janumy 

next following the adoption and filing. 

(g) The Department of Revenue 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 of each calendar month, the Department of Revenue shall prepare and certify lo the 

Comptroller of the State oflllinois the amount to be paid to the county, which shall be the balance in the fund, less any amount 

detem1ined by the Department to be necessary for the payment of refunds. \Vithin 10 days after receipt by the Comptroller 

of the certification of the 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 under this 

Section shall be used only for the economic development activities ofthe county and communities located within the county. 

{h) \:Vhen certifying the amount of a monthly disbursement to the county under this Section, the Department shall increase or 

decrease the amounts by an amount necessary to offset any miscalculation of previous disbursements. The offset amount shall 

be the amount erroneously disbursed within the previous 6 months from the time a miscalculation is discovered. 

(i) This Section may be 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':> 7 0. 120-::!a, 120 2h. 120 ·2c. L::!O 3. 120 4. l 2U 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 l 6, l 15 J 7, l 15 l li. I J 5, 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 

Current through P.A. 99-487 of the 2015 Reg. Sess. 

( 
( 

750/25. Flood prevention retailers' and service occupation taxes, 70 ILCS 750/25 

70 ILCS 750/25 

West's Smith-Hurd Illinois Compiled Statutes Annotated Currentness 

Chapter 70. Special Districts 

Flood Prewntion 

Act 750. Flood Prevention DistrictAct 

750/25. Flood prevention retailers' and service occupation taxes 

§ 25. Flood prevention retailers' and serYice occupation taxes. 

(a) Ifthc Board of Commissioners 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 of a majority 

of the members of the county board of the 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 of the district to pro\'ide revenue to pay the costs of providing emergency levee repair and flood prevention and to 

secure the payment of bonds, notes, and other e,·idences of indebtedness issued under this Act for a period not to exceed 25 

years or as required to repay the bonds, notes, and other evidences of indebtedness issued under this Act. The tax rate shall be 

0.25'(.\, of the gross receipts from all taxable sales made in the course of that business. The tax imposed under this Section and all 

civil penalties that may be assessed as an incident thereof shall be coHeeted and enforced by the State Department of Revenue. 

The Department shaH have full power to administer and enforce this Section; to collect all taxes and penalties so collected in 

the manner hereinafter provided: and to detem1ine all rights lo credit memoranda arising on account of the erroneous payment 

of tax or penalty hereunder. 

In the administration of and compliance with this subsection, the Department and persons who are subject to this subsection (i) 

have the same rights, remedies, privileges. immunities, powers, and duties, (ii) are subject to the same conditions, restrictions, 

limitations, penalties, and definitions of tenns, and (iii) shall employ the same modes of procedure as are set forth in Sections I 

through lo, 2 through 2-70 (in respect to all provisions contained in those Sections other than the State rate of tax), 2a through 

2h, 3 (except as to the disposition of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 51, 6, 6a, 6b, 6c, 7, 

8, 9, 10, 11, I la, 12, and 13 of the Retailers' Occupation Tax Act and all provisions of the Uniforn1 Penalty and Interest Act 

as if those 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 collect under the Use Tax Act, under any bracket schedules the Department may prescribe. 

!fa tax is imposed under this subsection (a), a tax shall also be imposed under subsection (b) of this Section. 

(b) lf a tax has been imposed under subsection (a), a flood prevention service occupation tax shall also be imposed upon all 

persons engaged within the territory of the district in the business of making sales of service, who, as an incident to making the 

sales of service, transfer tangible personal property. either in the fom1 of tangible personal property or in the form of real estate 

as an incident to a sale of service to provide revenue to pay the costs of providing emergency levee repair and flood preYcntion 

and to secure the payment of bonds, notes, and other evidences of indebtedness issued under this Act for a period not to exceed 

25 years or as required to repay the bonds, notes, and other evidences of indebtedness. The tax rate shall be 0.25% of the selling 

price of all tangible personal property transferred. 

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 State Department of Revenue. The Department shall have full power to 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 of taxes and penalties collected in the manner hereinafter provided; 

and to determine all rights to credit memoranda arising on account of the erroneous payment of tax or penalty hereunder. 

In the administrntion of and compliance with this subsection, the Department and persons who are subject to this subsection 

shall (i} have the same rights, remedies, privileges, immunities, powers. and duties, (ii) be subject to the same conditions, 

restrictions. limitations, penalties, and definitions of terms. and (iii) employ the same modes of procedure as are set forth in 

Sections 2 ( except 1hat !he reference to State in the definition of supplier maintaining a place of business in this State means the 

district). 2a through 2d, 3 through 3-50 (in respect to all provisions contained in those Sections other than the State rate of tax), 

4 (except that the reference to the State shall be to the district), 5, 7, 8 ( except that the jurisdiction to which the tax is a debt 

to the extent indicated in that Section 8 is the district). 9 (except as to the disposition of taxes and penalties collected). 10, 11, 

12 ( except the reference therein to Section 2b of the Retailers' Occupation Tax Act), 13 (except that any reference to the State 

means the district). Section 15. 16, 17. 18, 19, and 20 of the 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 Department may presc1ibe. 

(c) The taxes imposed in subsections (a) and (b) may not be imposed on personal property titled or wgistered with an agency of 

the State; 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): prescription and non-prescription medicines, drugs, 

and medical appliances: modifications to a motor vehicle for the purpose of rendering it usable by a 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 of engaging in any 

business that under the Constitution of the L'nited States may not be made the subject of taxation by the State. 

(e) The certificate of registration 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 or resolution 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 or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the disbursement 

of stated sums of money to the counties from which retailers or sen·icemen have paid taxes or penalties to the Department 

during the second preceding calendar month. 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% of that 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 of this Section on behalf of the 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 of refunds made during the second preceding calendar month by the Department on behalf 

of the 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 of a monthly disbursement 

to a county under this Section, the Department shall increase or decrease the amounts by an amount necessary to offset any 

miscalculation of previous disbursements within the previous 6 months from the time a miscalculation is discovered. 

( 

( 
( 

( 

750125. Flood prevention retailer$' and service occupation ta1-:es. 70 ILCS 750/25 

Within l O days after receipt by the Comptroller from the Department of the disbursement certification to the counties pro\'ided 

for in this Section, the Comptroller shall 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 notify the 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 of the Flood 

Pre\'ention Occupation Tax Fund. 

(g) If a co1mty imposes a tax under this Section, then the county board shall, by ordinance, discontinue the tax upon the payment 

of all indebtedness of the flood prevention district. The tax shall not be discontinued until all indebtedness of the 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 of ReYenne either (i) on or before the first day of April. whereupon the 

Department shall proceed lo administer and enforce the tax or change in the rate as of the first day of July next following the 

filing; or (ii) on or before the first day of October. whereupon the Department shall proceed to administer and enforce the tax 

or change in the rate as of the first day of January next foIIO\ving the filing. 

(j) County Flood Pre,·ention Occupation Tax Fund. All proceeds received by a county from a tax distribution under this Section 

must be maintained in a special fund knovin as the [name of county] flood prevention occupation tax fund. The county shall. at 

the direction of the 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 of indebtedness 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 I 9. 

Current through P.A. 96-7, of the 2009 Reg. Sess. 
( 
( 

( 

750/25. Flood prevention retailers' and service occupation taxes. !L ST CH 70 § 750125 

West's Smith-Hurd I11inois Compiled Statutes Annotated 

Chapter 70. Special Districts 

Flood Prewntion 

Act 750. Flood Prevention District Act 

70 ILCS 750/25 

750/25. Flood pren:,ntion retailers' and senice occupation taxes 

Effective: July 31, 2015 

Currentness 

§ 25. Flood prevention retailers' and service occupation taxes. 

{a) lfthe Board of Commissioners 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 of a majority 

ofthe members of the county board of the 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 of the district to provide revenue to pay the costs ofpro\'iding emergency levee repair and flood prevention and to 

secure the payment of bonds, notes, and other evidences of indebtedness issued under this Act for a period not to exceed 25 

years or as required to repay the bonds, notes, and other evidences of indebtedness issued under this Act. The tax rate shall be 

0.25% of the gross receipts from all taxable sales made in the course of that 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 manner hereinafter provided; and to determine all rights to credit memoranda arising on account of the erroneous payment 

of tax or penalty hereunder. 

In the administration of and compliance with this subsection, the Department and persons who are subject to this subsection (i) 

have the same rights, remedies, privileges, immunities, powers, and duties, (ii) are subject to the same conditions, restrictions, 

limitations, penalties, and definitions of tenns, and {iii) shall employ the same modes of procedure as are set forth in Sections l 

through lo, 2 through 2-70 (in respect to all provisions contained in tl1ose Sections other than the State rate of tax), 2a through 

2h, 3 (except as to the disposition of taxes and penalties collected), 4, 5, 5a, 5b. 5c, 5d, 5e, 5f, 5g, 5h, 5i, 51, 6, 6a, 6b, 6c, 6d, 

7, 8, 9. 10. ! ], I la, 12, and 13 ofthe Retailers' Occupation Tax Act and all provisions ofthe Uniform Penalty and Interest Act 

as if those provisions were 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 sdlers arc requircd to collect under the Use Tax Act, under any bracket schedules the Department may prescribe. 

!fa tax is imposed under this subsection (a), a tax shall also be imposed under subsection (b) ofthis Sectio11. 

(b) If a tax has been imposed under subsection (a), a flood prevention service occupation tax shall also be imposed upon all 

persons engaged within the territory of lhe district in the business of making sales of service, who, as an incident to making the 

sales of service, transfer tangible personal property, either in the form of tangible personal property or in the form of real estate 

as an incident to a sale of service to provide revenue to pay the costs of providing emergency levee repair and flood prevention 

and to secure the payment ofbonds, notes, and other evidences of indebtedness issued under this Act for a period not to exceed 
750/25. Flood prevention retailers' and service occupation taxes. IL ST CH 70 § 750125 

25 years or as required lo repay the bonds, notes, and other e\·idences of indebtedness. The tax rate shall be 0.25% of the selling 

price of all tangible personal property transferred. 

The tax imposed under this subsection and all ciYil penalties that may be assessed as an incident thereof shall be collected and 

enforced by the State Department of Revenue. The Department shall haYe full power to administer and enforce this subsection; 

to collect all taxes and penalties due hereunder; to dispose of taxes and penalties collected in the manner hereinafter proYided: 

and to determine all rights to credit memoranda arising on account of the erroneous payment of tax or penalty hereunder. 

In the administration of and compliance with this subsection, the Department and persons who are subject to this 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 of procedure as are set forth in 

Sections 2 { except that the reference to State in the definition of supplier 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 other than the State rate of tax). 

4 (except that the reference to the State shall be to the district), 5, 7, 8 (except that the jurisdiction to which the tax is a debt 

to the extent indicated in that Section 8 is the district), 9 (except as to the disposition of taxes 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 of the Service Occupation Tax Act and all provisions of the L'niform 

Penalty and Interest Act. as folly as if those 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 collect under the Service Use Tax Act. under 

any bracket schedules the Department may prescribe. 

(c) The taxes imposed in subsections (a) and (b) may not be imposed on personal property tilled or registered with an agency of 

the State: 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); prescription and non-prescription medicines, drugs, 

and medical appliances; modifications to a motor vehicle for the purpose of rendering it usable by a person with a disability: 

or insulin, urine testing materials, and syringes and needles used by diabetics. 

(d) Nothing in this Section shal! be construed to authorize the district to impose a tax upon the privilege of engaging in any 

business that under the Constitution of the L'nited States may not be made the subject of taxation by the State. 

(e) The certificate of registration 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 Department under an ordinance or resolution under this 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 be deposited into the flood Prevention Occupation Tax Fund, which shall be an unappropriated trust fond 

held outside the State treasury. 

On or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the disbursement 

of stated sums of money to the counties from which retailers or servicemen have paid taxes or penalties to the Department 

during the second preceding calendar month. 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% of that 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 of this Section on behalf of the county, (ii) plus an amount that 

the Department detem1ines is necessary to offset any amounts that were erroneously paid to a different taxing body: (iii) less 

an amount equal to the amount of ref-unds made during the second preceding calendar month by the Department on behalf 

of the 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 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 ofpre\'ious disbursements within the previous 6 months from the time a miscalculation is discovered. 

\\'ithin 10 days after receipt by the Comptroller from lhe Department of the disbursement certification to the counties 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 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 notify the Comptroller, who shall cause the order to be drawn for the amount specified 

and to the person named in the notification from lhe Department. The refund shall be paid by the Treasurer out of the Flood 

Prevention Occupation Tax Fund. 

(g) If a county imposes a tax under this Section, then the county board shall, by ordinance. discontinue the tax upon the payment 

of all indebtedness of the flood prevention district. The tax shall not be discontinued until all indebtedness of the 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 of Revenue either (i) on or before the first day of April, whereupon the 

f Department shall proceed to administer and enforce the tax or change in the rate as of the first day of July next following the 

filing; or (ii) on or before the first day of October, whereupon the Department shall proceed to administer and enforce the lax 

or change in the rate as of the first day of January 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 of county] Oood prevention occupation tax fund. The county 

shall, at the direction of the flood prevention dist1ict, use moneys in the fund to pay the costs of providing emergency levee 

repair and flood pre\'ention and to pay bonds, notes, and other evidences of indebtedness issued under this Act. 

(k) This Section may be 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 of the 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-Hurd Illinois Compiled Statutes Annotated Currentness 

Chapter 55. Counties 

Act 5. Counties Code (Refs & Annos) 

Article 5. Powers and Duties of County Boards 

Dhision 5-1. In General 

5/5-1006.7. School facility occupation taxes 

§ 5- ! 006.7. School facility occupation taxes. 

(a) The county board of any county may impose a tax upon all persons engaged in the business of selling tangible personal 

property, other than personal property titled or registered with an agency of this State's government, at retail in the county on 

the gross receipts from the sales made in the course of business to provide re\'Cnue to be used exclusively for school facility 

purposes if a proposition for the tax has been submitted to the electors of that county and approved by a majority of those 

Yo ting on the question as provided in subsection (c ). The tax under this Section may be imposed only in one-quarter percent 

increments and may not exceed 1 %. 

This additional tax may not be imposed on the sale of food for human consumption that is to be consumed off the premises 

where it is sold (other than alcoholic be\'erages, soft drinks, and food that has been prepared for immediate consumption) and 

prescription and non-prescription medicines, drugs, medical appliances and insulin. urine testing materials, syringes and needles 

used by diabetics. The Department of ReYenue has full power to administer and enforce this subsection, to collect all taxes and 

penalties due under this subsection, to dispose of taxes and penalties so collected in the manner provided in this subsection, and 

to detcnninc all rights to credit memoranda arising on account of the erroneous payment of a tax or penalty under this subsection. 

The Depa1tment shall deposit all taxes and penalties collected under this subsection into a special fund created for that purpose. 

In the administration of and compliance with this subsection, the Department and persons who are subject to this subsection {i) 

have the same rights, remedies, privileges, immunities, powers, and duties, (ii) are subject to the same conditions, restrictions, 

limitations. penalties, and definitions of terms, and (iii) shall employ the same modes of procedure as are set forth in Sections I 

through lo, 2 through 2-70 (in respect lo all provisions contained in those Sections other than the State rate of tax), la through 

2h, 3 (except as to the disposition of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f. 5g, 5h. 5i, 5j, 5k, 51, 6, 6a, 6b, 

6c, 7, 8, 9, 10, 11, 11 a, 12, and I 3 of the Retailers' Occupation Tax Act and all provisions of the Unifonn Penalty and Interest 

Act as ifthose provisions were set forth in this subsection. 

The certificate of registration that is issued by the Department to a retailer under the Retailers' Occupation Tax Act 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 imposed under the aulhorily granted in this subsection may reimburse themselves for their seller's tax 

liability by separately stating that tax as an additional charge, which may be stated in combination, in a single amount, with State 

tax that sellers are required to collect under the Use Tax Act, pursuant to any bracketed schedules set forth by the Department 

(b) lfa tax has been imposed under subsection (a), then a ser\'ice occupation tax must also be imposed at the same rate upon all 

persons engaged, in the county, in the business of making sales of service, who, as an incident to making those sales of service, 

transfer tangible personal property within the county as an incident to a sale of service. 
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 thereof shall be collected 

and enforced by the Department and deposited into a special fund created for that purpose. The Department has full power 

to administer and enforce this subsection, to collect all taxes and penalties due under this subsection. to dispose of taxes and 

penalties so collected in the manner provided in this subsection, and to detem1ine all rights to credit memoranda arising on 

account of the enoneous payment of a tax 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 

(i) have the same rights, remedies, pri,·i!eges. immunities, powers and duties, (ii) be subject to the same conditions. restrictions, 

limitations, penalties and definition ofte1ms, and (iii) employ the same modes of procedure as are set forth in Sections 2 (except 

that that reference to State in the definition of supplier maintaining a place of business in this State means the county), 2a 

through :?:d, 3 through 3-50 (in respect to all provisions contained in those Sections other than the State rate of tax), 4 (except 

that the reference to the State shall be to the county), 5, 7, 8 ( except that the jurisdiction to which the tax is a debt to the extent 

indicated in that Section 8 is the county). 9 {except as to the disposition of taxes and penalties collected), 10, 11, 12 (except 

the reference therein to Section 2b of the Retailers' Occupation Tax Act), 13 (except that any reference to the State means the 

county), Section 15, 16, 17. 18. 19. and 20 of the Service Occupation Tax Act and all provisions of the Uniform Penalty and 

Interest Act, as fully as if those provisions were set forth herein. 

Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their 

serviceman's tax liability by separately stating the tax as an additional charge, which may be stated in combination, in a single 

amount. with State tax that 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 under this Section may not be imposed until. by ordinance or resolution of the county board, the question of imposing 

the tax has been submitted to the electors of the county at a regular election and approved by a majority of the electors voting on 

the question, Upon a resolution by the county board or a resolution by school district boards that represent at least 51 % of the 

student enrollment within the county. the county board must certify the question to the proper election authority in accordance 

with the Election Code. 

The election authority must submit the question in substantially the following form: 

Shall (name of county) be authorized to impose a retailers' occupation tax and a service occupation ta.x (commonly referred 

to as a "sales tax'") at a rate of (inseri rate) to be used exclusively for school facility purposes? 

The election authority must record the votes as "Yes" or "No". 

If a majority of the electors voting on the question vote in the affinnative. then the county may. thereafter, impose the tax. 

For the purposes of this subsection { c), "enrollment" means the head count of the students residing in the county on the last 

school day of September of each year, which must be reported on the Illinois State Board of Education 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 or before the 25th day of each calendar month, the Department shall prepare and certify lo the Comptroller the disbursement 

of stated sums of money to the regional superintendents of schools 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 of schools and disbursed to him or her in accordance with 3-14.31 of the School Code, is equal to the amount 

(not including credit memoranda) collected from the COlmty under this Section during the second preceding calendar month by 

the Department, (i) less 2'Yn of that amount, which shall be deposited into the Tax Compliance and Administration Fund and 

shall be used by the Department, subject to appropriation, to cover the costs of the Department in administering and enforcing 

the proYisions of this Section, on behalf of the county, (ii) plus an amount that the Department determines 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 of the 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 of a monthly disbursement to a regional superintendent of schools under this 

Section, the Department shall increase or decrease the amounts by an amount necessary to offset any miscalculation of previous 

disbursements within the 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 of the schools provided for in this Section, the Comptroller shall cause the orders to be drawn for the 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 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 of the School 

Facility Occupation Tax Fund. 

(e) For the purposes of determining the local governmental unit whose tax is applicable, a retail sale by a producer of coal or 

another mineral mined in Illinois is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted 

from the earth. This subsection does not apply to coal or another mineral when it is delivered or shipped by the seller to the 

purchaser at a point outside Illinois so that the sale is exempt under the United States Constitution as a sale in interstate or 

( foreign commerce. 

(D Nothing in this Section may be construed to authorize a county board to impose a tax upon the privilege of engaging in any 

business that under the Constitution of the United States may not be made the subject of taxation by this State. 

(g) lfa county board imposes a tax under this Section, then the board may, by ordinance, discontinue or reduce the rate of the 

tax. If, however, a school board issues bonds that are backed by the proceeds of the tax under this Section, then the county board 

may not reduce the tax rate or discontinue the tax if that rate reduction or discontinuance would inhibit the school board's ability 

to pay the principal and interest on those bonds as they become due. If the county board reduces the tax rate or discontinues 

the tax, then a referendum must be held in accordance with subsection (c) of this Section in order to increase the rate of the 

tax or to reimpose the discontinued tax. 

The results of any election that authorizes a proposition to impose a tax under this Section or to change the rate of the tax along 

with an ordinance imposing the tax, or any ordinance that lowers the rate or discontinues the tax, must be certified by the county 

clerk and filed with the Illinois Department of Revenue either (i) on or before the first day of April, whereupon the Department 

shall proceed to administer and enforce the tax or change in the rate as oftl1e first day of July next following the filing: or {ii) 

on or before the first day of October, whereupon the Department shall proceed to administer and enforce the tax or change in 

the rate as of the first day of January next following the filing. 

(h) For purposes of this Section, "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 equipment and for the acquisition and improvement of real prope1ty and interest in real property required, 

or expected to be required, in connection with the capital facilities. "School-facility purposes" also includes fire prevention, 

safety, energy conservation, disabled accessibility, school security, and specified repair purposes set forth under Section 17-2.11 

of the School 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 of the 2008 Reg. Sess. 

( 
( 

5f5·1006.7. School facility occupation taxes, IL ST CH 55 § 5/5-1006.7 

West's Smith-Hurd Illinois Compiled Statutes A . .nnotated 

Chapter 55, Counties 

Act 5. Counties Code (Refs & Annos) 

Article 5. Powers and Duties of County 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 any county, a tax shall be imposed upon all persons engaged in the business of selling tangible personal property, other than 

personal property titled or registered with an agency of this State's government, at retail in the county on the gross receipts from 

the sales made in the course ofbusiness to pro\'ide revenue to be used exclusively for school facility purposes if a proposition for 

the tax has been submitted to the electors of that county and appro\'ed by a majority of those 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 of food for human consumption that is to be consumed off the premises 

where it is sold (other than alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption) and 

prescription and non-prescription medicines, drugs, medical appliances an<l insulin, urine testing materials, syringes and needles 

used by diabetics. The Department of Revenue has full power to administer and enforce this subsection, to collect all taxes and 

penalties due under this subsection, to dispose of taxes and penalties so collected in the manner provided in this subsection, and 

lo detennine al! rights to credit memoranda arising on account of the erroneous payment of a tax or penalty under this subsection. 

The Department shall deposit all taxes and penalties collected under this subsection into a special fond created for that purpose, 

In the administration of and 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) arc subject to the same conditions, restrictions, 

limitations, penalties, and definitions oftenns, and (iii) shall employ the same modes of procedure as are set forth in Sections I 

through Io, 2 through 2-70 (in respect to all provisions contained in those Sections other than the State rate of tax), 2a through 

2h, 3 (except as to the disposition of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 51, 6, 6a, 6b, 6c, 

6d, 7. 8, 9, 10, 11, I la, 12, and 13 of the Retailers' Occupation Tax Act and all provisions of the Unifonn Penalty and interest 

Act as if those prodsions were set forth in this subsection. 

The certificate of registration that is issued by the Department to a retailer under the Retailers' Occupation Tax Act 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 granted in this subsection may reimburse themselves for their seller's tax 

liability by separately stating lhat tax as an additional charge, which may be stated in combination, in a single amount, with State 

tax that sellers are required to collect under the Use Tax Act pursuant to any bracketed schedules set forth by the Department. 
5.'5-1006.7. Schoof facmty occupation taxes, !L ST CH 55 § 5/5-1006.7 

(b) If a 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 of making sales of service, who, as an incident to making those sales of service, 

transfer tangible personal property within the county as an incident to a sale of service. 

This tax may not be imposed on sales of food for human consumption that is to be consumed off the premises where it is 

sold (other than alcoholic 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 thereof shall be collected 

and enforced by the Department and deposited into a special fund created for that purpose. The Department has full power 

to admi11ister and enforce this subsection. to collect all taxes and penalties due under this subsection. to dispose of taxes and 

penalties so collected in the manner proYided in this subsection. and to determine all rights to credit memoranda arising on 

account of the erroneous payment of a tax or penalty under this subsection. 

In the administration of and compliance with this subsection. the Department and persons who are subject to this subsection shall 

(i) have the same rights, remedies, privileges. immunities. powers and duties. (ii) be subject to the same conditions, restrictions, 

limitations, penalties and definition oftcnns, and (iii) employ the same modes of procedure as are set forth in Sections 2 ( except 

that that reference to State in the definition of supplier maintaining a place of business in this State means the county), 2a 

through 2d, 3 through 3-50 (in respect to all provisions contained in those Sections other than the State rate of tax), 4 (except 

that the reference to the State shall be to the county), 5, 7, 8 ( except that the jurisdiction to which the tax is a debt to the extent 

indicated in that Section 8 is the county), 9 (except as to the disposition of taxes and penalties collected), 10, 11, 12 (except 

the reference therein to Section 2b of the Retailers' Occupation Tax Act). 13 (except that any reference to the Slate means the 

county). Section 15, 16, 17, 18, 19, and 20 of the Service Occupation Tax Act and all provisions of the Uniform Penalty and 

Interest Act, as fully as if those provisions were sel 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, \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 of imposing the tax has been submitted to the electors of 

the county at a regular election and approved by a majority of the electors voting on the question. For all regular elections held 

prior to the effoctiYe date of this amendatory Act of the 97th General Assembly. upon a resolution by the county board or a 

resolution by school district boards that represent at least 51 ","o of the student enrollment within the county, the county board 

must ce11ify the question to the proper election authority in accordance with the Election Code. 

For all regular elections held prior to the effective date of this amendatory Act of the 97th General Assembly, the election 

authority must submit the question in substantially lhe following fonn: 

Shall (name of county) 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'·. 

If a majority of the electors voting on the question vote in the affirmative, then the county may, thereafter, impose the tax, 

For all regular elections held on or after the effective date of this amendatory Act of the 97th General Assembly, the regional 

superintendent of schools for the county must, upon receipt of a resolution or resolutions of school district boards that represent 
515-1006.7. Schoo! facility occupation taxes, IL ST CH 55 § 515-1006.7 

more than 50% of the sntdent enrollment within the county, certify the question to the proper election authority for submission 

to the electors of the 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 of this amendatory Act of the 97th General Assembly, the election 

authority must submit the question in substantially the following fom1: 

Shall a retailers' occupation tax and a serYice occupation tax (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·'. 

If a majority of the 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 of this subsection (c), "enrollment" means the head count of the students residing in the county on the last 

school day of September of each year, ,\·hich must be reported on the Hlinois State Board of Education 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 or before the 25th day of each calendar month, the Department shall prepare and ce11ify to the Comptroller the disbursement 

of stated sums of money to the regional superintendents of schools 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 of schools and disbursed to him or her in accordance with Section 3-14.31 of the 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% of that amount. which shall be deposited into the Tax Compliance and Administration 

Fund and shall be used by the Department, subject to appropriation. to cover the costs of the Department in administering and 

enforcing the provisions of this Section, on behalf of the county, (ii) plus an amount that the Department detennines is necessary 

to offset any amounts that were erroneously paid to a different taxing body: (iii) less an amount equal to the amount of refunds 

made during the second preceding calendar month by the Department on behalf of the 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 of a monthly disbursement to a regional superintendent of schools under this 

Section, the Department shall increase or decrease the amounts by an amount necessary to offset any miscalculation of previous 

disbursements within the previous 6 months from the time a miscalculation is discovered. 

Within JO days after receipt by the Comptroller from Lhe Department of the disbursement certillcation to the regional 

superintendents of the schools provided for in this Section, the Comptroller shall cause the orders to be drawn for the respective 

amounts in accordance with directions contained in the certification. 

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 notify the Comptro!ler, 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 of the 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 of detem1ining the local gon:rnmcntal unit whose tax is applicable, a retail sale by a producer of coal 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 of engaging in any business 

that under the Constitution of the United States may not be made the subject of taxation by this State. 

(g) If a county board imposes a tax under this Section pursuant to a referendum held before 1he effective date of this amenda!Oty 

Act of the 97th General Assembly at a rate below the rate set forth in the question approYed by a majority of electors of that 

county voting on the question as provided in subsection (c). then the county board may, by ordinance, increase the rate of the 

tax up to the rate set forth in the question approved by a majo1ity of electors of that county voting on the question as provided 

in subsection ( c ). If a county board imposes a tax under this Section pursuant to a referendum held before the effective date of 

this amendatoJ)' Act of the 97th General Assembly, then the board may, by ordinance, discontinue or reduce the rate of the tax. 

!fa tax is imposed under this Section pursuant to a referendum held on or after the effective date of this amendatOI)' Act of the 

97th Genera! Assembly, then the county board may reduce or discontinue the tax, but only in accordance with subsection (h-5) 

of this Section. If, however, a school board issues bonds lhat are secured by the proceeds of the tax under lhis Sectio1\, then the 

county board may not reduce the tax rate or discontinue the tax if that rate 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 to pay the principal and interest on those bonds. If the county board reduces the tax rate or discontinues 

the tax, then a referendum must be held in accordance with subsection ( c) of this Section in order to increase the rate of the 

lax or to reimpose the discontinued tax. 

Until January 1, 2014, the results of any 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 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 of the first day of July next 

fol!owing the filing; or (ii) on or before the first day of October, whereupon the Department shall proceed to administer and 

enforce the tax or change in the rate as of the first day of January next following the filing. 

Beginning January l, 2014, the results of any 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 of Revenue either (i) on or before the first day of May, 

whereupon the Depai1ment shall proceed to administer and enforce the tax or change in the rate as of the first day of July next 

following the filing; or (ii) on or before the first day of October, whereupon the Depatiment shall proceed to administer and 

enforce the tax or change in the rate as of the first day of January next following the filing. 

(h) For purposes of this Section, ·'school facility purposes" means (i) the acquisition, development, construction, reconstruction. 

rehabilitation, improvement, financing, architectural planning, and installation of capital facilities consisting of buildings, 

structures, and durable equipment and for the acquisition and improvement of real property and interest in real property required, 

or expected to be required, in connection with the capital facilities and (ii) the payment of bonds or other obligations heretofore 

or hereafter issued, including bonds or other obligations heretofore or hereafter issued to refund or to continue to refund bonds 

or other obligations issued, for school facility purposes, provided that the taxes levied to pay those bonds are abated by the 

amount of the taxes imposed 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 of the School Code. 

(h"5) A county board in a county where a tax has been imposed under this Section pursuant to a referendum held on or after the 

effective date of this amendatory Act of the 97th General Assembly may, by ordinance or resolution, submit to the voters of 

the county the question of reducing or discontinuing the tax. In the ordinance or resolution, the county board shall certify the 

question to tlie proper election authmity in accordance with the Election Code. The election authority must submit the 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 of county) at a rate of (insert rate) be (reduced to (insert rate))( discontinued)? 

if a majority of the electors \"Oting on the question vote in the affirmative, then, subject to the pro\"isions of subsection (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, ~ I 0. 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 STATUTES ANNOTATED 

CHAPTER 70. SPECIAL DISTRICTS 

200/245-12. L'se and occupation taxes 

§ 245-12. Use and occupation taxes. 

CMCCENTER 

ACT 200. CMC CENTER CODE 

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 of the metropolitan area at the next regularly scheduled election in accordance with the general election Jaw. [FN I] 

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 of obtaining funds for the support, construction, maintenance, or financing of 

a facility ofthe Authority?"' 

Votes shall be recorded as "yes" or "'no ... If a majority of all votes cast on the proposition are in favor of the proposition, the 

Authority is authorized to impose the tax. 

(b) The Authority shail impose the retailers' occupation tax upon all persons engaged in the business of selling 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 of such business within the metropolitan area. The tax imposed under this Section and all ci-vil penalties that may be 

assessed as an incident thereof shall be collected and enforced by the Depanment of Revenue. 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 of the erroneous payment of tax or penalty hereunder. In 

the administration of, and compliance with, this Section, the Department and persons who are subject to this Section shall (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 of procedure as are 

prescribed in Sections 1, 1 a, 1 a-1. I c, Id, I e, 1 f, Ii, 1 j, I k, 1 m. l n, 2, 2-5, 2-5.5, 2-10 (in respect to all pro\'isions therein other 

than the State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except as to the disposition of taxes 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 of the Retailers' Occupation Tax Act [Fl':2] and Section 3-7 of the Unifonn Penalty and Interest Act, [FN3] as fully 

as if those provisions were set forth in this subsection. 

Persons subject to any tax imposed under this subsection 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 single amount. with State taxes that 

seHers are required to co!lect, in accordance with such bracket schedules as the Department may prescribe. 

Whenever the Department detem1ines that a refund should be made under this subsection to a claimant instead of issuing a 

credit memorandum, the Deparh11ent 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 Dcpaitment. The refund sha!l be paid by the State Treasurer 

out of the tax fund referenced under paragraph (g) of this Section. 

If a 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 of detennining whether a tax authorized under this Section is applicable, a retail sale, by a producer of coal or 

other mineral mined in Illinois, is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from 

the earth. This paragraph does not apply to coal or other mineral when it is delivered or shipped by the se!ler 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. 
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 of engaging in any 

business which under the Constitution of the United States may not be made the subject of taxation by this State. 

(c) ]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 of making sales of service. who, as an incident to making those 

sales of service, transfer tangible personal property within the metropolitan area as an incident to a sale of service. The tax 

imposed under this subsection and all civil pennlties that may be assessed as an incident thereof shall be collected and enforced 

by the Department ofReYenue. The Department has full power to administer and enforce this paragraph; to collect all taxes and 

penalties due hereunder: to dispose of taxes and penalties so collected in the manner hereinafter provided; and to determine all 

rights to credit memoranda arising on account of the erroneous payment of tax or penalty hereunder. In the administration of. 

and compliance with this paragraph. the Department and persons who are subject to this paragraph shal[ (i) have the same rights, 

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 of procedure as are prescribed in Sections 

2 ( except that the reference to State in the definition of supplier maintaining a place of business in this State shall mean the 

metropolitan area), 2a. 2b, 3 through 3-55 (in respect to all provisions therein other than the State rate of tax), 4 (except that 

the reference to the State shall be to the Authority). 5, 7, 8 (except that the jurisdiction to which the tax shall be a debt to the 

extent indicated in that Section 8 shall be the Authority). 9 (except as to the disposition of taxes and penalties collected, and 

except that the returned merchandise credit for this tax may not be taken against any State tax), l l, 12 (except the reference 

therein to Section 2b of the Retailers' Occupation Tax Act). 13 (except that any reference to the State shall mean the Authority), 

15, 16, 17. 18, 19 and 20 of the Service Occupation Tax Act [f;'\4] and Section 3-7 of the Unifonn Penalty and Interest Act, 

as fully as if those 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 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 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 of issuing a 

credit memorandum, the Department shall notify the State Comptroller, who shall canse the warrant to be drawn for the amount 

specified, and to the person named, in the notification from the Depmtment. The refund shall be paid by the State Treasurer 

out of the tax fund referenced under paragraph (g) of this Section. 

Nothing in this paragraph shall be construed to authorize the Authority to impose a tax upon the priYilege of engaging in any 

business which under the Constitution of the United States may not be made the subject of taxation by the State. 

( d) rr 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 metropolitan area, any item of tangible 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 of this State's government. 

"Selling price'' is defined as in the Use Tax Act. [FN6] The lax 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 of Revenue 

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 of registration for the property may be issued. The tax or proof of exemption may be 

transmitted to the Department by way of the State agency with vd1ich, or the State officer with whom. the tangible personal 

property must be titled or registered if the Department and the Stale agency or State officer determine that this procedure v.;ill 

expedite the processing of applications 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 of the erroneous payment of tax, penalty or interest hereunder. 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 of terms, and (iii) employ the same modes of procedure as are 

prescribed in Sections 2 (except the definition of"retailer maintaining a place of business in this State"), 3, 3-5, 3-10, 3-45. 

3-55, 3-65, 3-70, 3-85, 3a, 4, 6, 7, 8 (except that the jurisdiction 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 of the Use Tax Act [FJ\'7] and Section 3-7 of the Uniforn1 Penalty and Interest Act, that are not inconsistent 

with this paragraph, as fully as if those provisions were set forth herein. 

Whenever the Department detennines that a refi.md should be made under this subsection to a claimant instead of issuing a 

credit memorandum. the Department shall notify the State Comptroller. \,·ho shall cause the order to be dravm 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 of registration issued by the State Department of Revenue to a retailer under the Retailers' Occupation Tax 

Act [F:\S] or under the SerYice Occupation Tax Act [FK9J shall pern1it the registrant to engage in a business lhat is taxed under 

the tax imposed under paragraphs (b ). ( c), or ( d) of this 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) of this Section. 

( f) The results of any election authorizing a proposition to impose a tax under this Section or effecting a change in the rate 

of tax 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 of tax under this Section shall be 

adopted and a ceitified copy thereof filed with the Department on or before the first day of April. After proper receipt of such 

certifications. the Department shall proceed to administer and enforce this Section as of the first day of July next fol!owing 

such adoption and filing. 

(g) The Department of Revenue 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 of each calendar month, the Department of Revenue shall prepare and certify 

to the Comptroller of the State of Illinois 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 of refunds. Within 10 days after receipt by the 

Comptroller of the certification of the amount to be paid to the Authority. the Comptroller shall cause an order to be dra,vn for 

payment for the amount in accordance with the directions contained in the certification. Amounts received from the tax imposed 

under this Section shall be used only for the support, constmction, maintenance, or financing of a facility of the Authority. 

(h) When certifying the amount of a monthly disbursement to the Authority under this Section, the Department shall increase 

or decrease the amounts by an amount necessary to offset any miscalculation of previous disbursements. The offset amount 

shall be the amount erroneously disbursed within the preYious 6 months from the time a miscalculation is disco,,ered. 

(i) This Section may be cited as the Salem Civic Center Use 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 I 5.12b, 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 et seq. 
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, l 05 9, !05 I 0, !05. l 1. 105, 12. 105, I :?:a, I 05 I 2b, 105 13, 105 14, 105 15. l 05. 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 Statutes Annotated 

Chapter 70. S1Jecial Districts 

CIVIC Center 

Act 200. CIVIC Center Code (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-quarter percent 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 of the metropolitan area at the next regularly scheduled election in accordance with the general election law. 1 

The question shall be in substantially the following fom1: 

'"Shall the Salem Civic Center Authority be auth01ized to impose a retailers' occupation tax. a service occupation tax, and a 

( use tax at the rate of (rate) for the sole purpose of obtaining fonds for the support, construction. maintenance, or financing 

of a facility of the Authority?" 

Votes shaU be recorded as '"yes'" or "no". If a majority of all votes cast on the proposition are in fa\•or of the proposition, the 

Authority is authorized to impose the tax. 

(b) The Authority shall impose the retailers' occupation tax upon all persons engaged in the business of selling 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 of such business within the metropolitan area. The tax imposed under this Section and all civil penalties that may be 

assessed as an incident thereof shall be collected and enforced by the Department of Revenue. 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 of the erroneous payment of tax or penalty hereunder. In 

the administration of, and compliance with, this Section, the Department and persons who are subject to this Section shall (i) 

have the same rights, remedies, privileges, immunities, powers and duties, (ii) be subject to the same conditions, restrictions. 

limitations, penalties, exclusions, exemptions. and definitions of terms, and (iii) employ the same modes of procedure as are 

prescribed in Sections 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 of tax), 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, I 0, 11, 

I la, 12, and 13 of the Retailers' Occupation Tax Act 2 and Section 3-7 of the Unifonn Penalty and Interest Act, 3 as fully as 

if those provisions were set forth in this subsection. 

Persons subject to 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 of issuing a 

credit memorandum, the Department shall notify the State Comptroller, who shall cause the warrant to be drawn for the amount 

specified, and to the person named, in the notification from the Department. The refund shall be paid by the State Treasurer 

out of the tax fund referenced under paragraph (g) of this Section. 

lfa 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. 

For the purpose of determining whether a tax authorized under this Section is applicable, a retail sale, by a producer of coal or 

other mineral mined in Illinois, is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from 

the earth. This paragraph does not apply to coal or other mineral when it is delivered or shipped by the seller to the purchaser 

at a point outside Illinois so that the sale is exempt under the Federal Constitution as a sale in interstate or foreign commerce. 

Nothing in this Section shall be construed to authorize the Authority to impose a tax upon the privilege of engaging in any 

business which under the Constitution of the United States may not be made the subject of taxation by this State. 

(c) !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 of making sales of service, who, as an incident to making those 

sales of service, transfer tangible personal property within the metropolitan area as an incident lo a sale of sef\'ice. 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 Depanment ofRewnue. The Department has foll power to administer and enforce this paragraph; to collect all taxes and 

pe11alties due hereunder: to dispose of taxes and penalties so collected in the manner hereinafter provided; and to detem1ine all 

rights to credit memoranda arising on account of the erroneous payment of tax or penalty hereunder. In the administration of, 

and compliance with this paragraph, the Department and persons who are subject to this paragraph shall (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 of procedure as are prescribed in Sections 

2 ( except thal the reference to State in the definition of supplier maintaining a place of business 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 of tax), 4 (except that the 

reference to the State shall be to the Authority), 5, 7, 8 ( except that the jurisdiction to which the tax shall be a debt to the extent 

indicated in that Section 8 shall be the Authority), 9 (except as to the disposition of taxes and penalties collected, and except 

that the returned merchandise credit for this tax may not be taken against any State tax), 11, 12 (except the reference therein 

to Section 2b of the Retailers' Occupation Tax Act), 13 (except that any reference to the State shall mean the Authority), 15, 

16, 17, l 8, 19 and 20 of the Se1Yice Occupation Tax Act'+ and Section 3-7 of the Uniform Penalty and Interest Act, as fully 

as if those 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 may prescribe. 

Whenever the Department detennines that a refund should be made under this subsection to a claimant instead of issuing a 

credit memorandum, the Department shall notify the State Comptroller, who shall cause the warrant to be drawn for the amount 

specified, and 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 of engaging in any 

business which under the Constitution of the United States may not be made the subject of taxation by the State. 

( 
( 

200/245-12. Use and occupation taxes. IL ST CH 70 § 200/245-12 

( d) If a tax has been imposed under subsection (b ). a use ta-..: shall also be imposed at the same rate upon the privilege of using, 

in the metropolitan area, any item of tangible 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 of this 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 of Revenue 

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 of registration for the property may be issued. The tax or proof of exemption may be 

transmitted to the Department by way of the State agency with which, or the State officer with whom, the tangible personal 

property must be titled or registered if the Department and the State agency or State officer detennine that this procedure wi!l 

expedite the processing of applications for title or registration. 

The Department has full power to administer and enforce this paragraph; to collect all taxes. penalties and interest due hereunder; 

to dispose of taxes, penalties and interest so collected in the manner hereinafter proYided: and to detennine all rights to credit 

memoranda or refunds arising on account of the erroneous payment of tax, penalty or interest hereunder. In the administration 

of. and compliance with, this subsection, the Department and persons who are subject to this paragraph shall (i) have the same 

rights, remedies, privileges. immunities, powers, and duties, (ii) be subject to the same conditions, restrictions. limitations, 

penalties, exclusions, exemptions, and definitions of terms. and (iii) employ the same modes of procedure as are prescribed in 

Sections 2 (except the definition of·'retailer maintaining a place 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 the jurisdiction 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 of tl1e Use Tax Act 7 and Section 3-7 of the Uniform Penalty and Interest Act, that are not inconsistent with this paragraph. 

as fully as if those provisions were set f011h herein. 

·whenever the Department detem1ines that a refund should be made under this subsection to a claimant instead of issuing a 

credit memorandum, the Department shall notify the State Comptroller, who shall cause the 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) of this Section. 

(e) A ce1iificate of registration issued by the State Department ofReYenue to a retailer under the Retailers' Occupation Tax Act)< 

or under the Service Occupation Tax Act IJ shall pem1it the registrant to engage in a business that is taxed under the tax imposed 

under paragraphs (b), (c). or (d) of this Section and no additional registration shall be required. A certificate issued under the 

Gse Tax Act or the Service lJse Tax Act shall be applicable with regard to any tax imposed under paragraph (c) of this Section. 

(f) The results of any election authorizing a proposition to impose a tax under this Section or effecting a change in the rate 

of tax 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 of tax under this Section shall be 

adopted and a certified copy thereof filed with the Department on or before the first day of Ap1il. After proper receipt of such 

certifications, the Department shall proceed to administer and enforce this Section as of the first day of July next following 

such adoption and filing. 

(g) The Depa1iment of Revenue 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 of each calendar month, the Department of Revem1e shall prepare and certify 

to the Comptroller of the State of Illinois the amount to be paid to the Authority, which shal! be the balance in the fond, less 
200!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 of refunds. Within IO days after receipt by the 

Comptroller of the certification of the amount to be paid to the Authority. the Comptroller shall cause an order to be drawn for 

payment for the amount in accordance with the directions contained in the certification. Amounts receiYed from the tax imposed 

under this Section shall be used only for the support. constrnction, maintenance. or financing of a facility of the Authority. 

(h) When certifying the amount of a monthly disbursement to the Authority under this Section, the Depa11ment shat! increase or 

decrease the amounts by an amount necessary to offset any miscalculation of preYious 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 I la, 120 12, 

and 12U 13. 

35 JLC'S "77,5 3-7. 

4 35 ILCS 115 '.'., 115 '2a, 115 ·:::b. 115:3 to 1 15 '3-55, 115. 4, I l 5 5. l 15 7, 115:8. 115 ·9, 115 11, l l 5 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-Hurd Illinois Compiled Stah1tes Annotated 

Chapter 50. Local Government 

Debt and Borrowing 

Act 470. limovationDevelopmcnt and Economy Act 

§ 31. STAR bond occupation taxes. 

50 ILCS 470/31 

470/31. STAR bond occupation taxi?s 

Effective: June 24, 2010 

Currentness 

(a) If the corporate authorities of a political subdivision have established a ST AR bond district and have elected to impose a 

tax by ordinance pursuant to subsection (b) or ( c) of this Section, each year after the date of the adoption of the ordinance and 

until all ST AR bond project costs and all political subdivision obligations financing the ST AR bond project costs, if any, have 

been paid in accordance with the STAR bond project plans, but in no event longer than the maximum maturity date of the last 

of the STAR bonds issued for projects in the STAR bond 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 service occupation taxes imposed in the political subdiYision imposing the tax. The corporate 

authorities of the political subdivision shall deposit the proceeds of the taxes imposed under subsections (b) and (c) into either 

(i) a special fund held by the corporate authorities of the political subdivision called the STAR Bonds Tax Allocation Fund 

for the purpose of paying ST AR bond project costs and obligations incurred in the payment of those costs if such taxes are 

designated as pledged STAR revenues by resolution or ordinance of the political subdivision or (ii) the political subdivision's 

general corporate fund if such taxes are not designated as pledged ST AR revenues by resolution or ordinance. 

The tax imposed under this Section by a municipality may be imposed only on the portion of a ST AR bond district that is within 

the boundaries of the municipality. For any part of a ST AR bond district that lies outside of the boundaries of that municipality, 

the municipality in which the other part of the ST AR bond district lies ( or the county, in cases where a portion of the ST AR 

bond district lies in the unincorporated area of a county) is authorized to impose the tax under this Section on that part of the 

ST AR bond district. 

(b) The corporate authorities of a political subdivision that has established a ST AR 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 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 ST AR bond district at a rate not to exceed I'% of the gross receipts from the sales made in the course 

of that 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 has been prepared 

for immediate consumption), prescription and nonprescription medicines, drugs, medical appliances, modifications to a motor 

vehicle for the purpose of rendering it usable by a disabled person, and insulin, urine testing materials, syiinges, and needles 

used by diabetics, for human use. 

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 of registration that is issued by the Department to a retailer under the 

( Retailers' Occupation Tax Act shal! pennit the retailer 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 such ordinance or resolution or 
470/31. STAR bond occupation taxes, 50 !LCS 470131 

under this subsection. The Department of Revenue shall have full power to administer and enforce this subsection, to collect al[ 

taxes and penalties due under this subsection in the manner hereinafter provided, and to determine all rights to credit memoranda 

arising on account of the erroneous payment of tax 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 subject to the same conditions, restrictions, limitations, penalties, exclusions, 

exemptions, and definitions of terms and employ the same modes of procedure, as are prescribed in Sections 1, la throttgh lo, 

2 through 2-65 (in respect to all provisions therein other than the State rate of tax), 2c through 2h, 3 (except as to the disposition 

of taxes 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 of the Uniform Penalty and Interest Act, as fully as if those provisions 

were set forth herein. 

!fa tax is imposed under this subsection (b), a tax shall also be imposed under subsection (c) of this Section. 

(c) Ifa tax has been imposed under subsection (b), a STAR Bond Service Occupation Tax shall also be imposed upon all 

persons engaged, in the ST AR bond district, in the business of making sales of service, who, as an incident to making those sales 

of service, transfer tangible personal property within the ST AR bond district, either in the fonn of tangible personal property 

or in the fom1 of real estate as an incident to a sale of service. The tax shall be imposed at the same rate as the tax imposed 

in subsection (b) and shal! not exceed\% of the selling price of tangible 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 off the premises 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 of rendering it usable by a disabled person, 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 may be assessed as an incident thereof shall be collected and 

enforced by the Depmtment of Revenue. The certificate of registration that is issued by the Department to a retailer under the 

Retailers' Occupation Tax Act or under the Service Occupation Tax Act shall permit the registrant to engage in a business 

that is taxable under any ordinance or resolution enacted pursuant to this subsection without registe1ing separatdy 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 al! taxes and penalties due under this subsection, to dispose of taxes and 

penalties so collected in the manner hereinafter proYided, and to detem1ine all 1ights to credit memoranda arising on account of 

the erroneous payment of tax 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 ha\'e the same rights, remedies, priYileges, immunities, powers, 

and duties, and be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions, and definitions 

of terms and employ the same modes of procedure as are prescribed in Sections 2, 2a through 2d, 3 through 3-50 (in respect 

to all provisions therein other than the State rate of tax), 4 (except that the reference to the State shall be to the STAR bond 

district), 5, 7, 8 (except that the jurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the 

political subdiYision), 9 (except as to the disposition of taxes and penalties collected, and except that the returned merchandise 

credit for this tax may not be tahn against any State tax), 10, I l, 12 (excepl lhl:l referenct: lht:rein lo Section 2b of the 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 of the Service Occupation Tax Act and all provisions of the Unifmm Penalty 

and Interest Act, as fully as ifthose provisions were set fm1h herein. 

If a tax is imposed under this subsection (c), a tax shall also be imposed under subsection (b) of this 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. 

Whenever the Department determines that a refund should be made under this Section lo a claimant instead of issuing a credit 

memorandum, the Department shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified 

and to the person named in the notification from the Deparhnent. The refund sha[I be paid by the State Treasurer out of the 

STAR Bond Retailers' Occupation Tax Fund. 

The Department shall immediately pay over to the State Treasurer, ex officio, as trnstee, all taxes, penalties, and interest col1ected 

under this Section for deposit into the STAR Bond Retailers' Occupation Tax Fund. On or before the 25th day of each calendar 

month, the Department shalJ prepare and certify to the Comptroller the disbursement of stated sums of money to named political 

subdivisions from the ST AR Bond Retailers' Occupation Tax fund, the political subdivisions to be those from which retailers 

have paid taxes or penalties under this Section to the Department during the second preceding calendar month. The amount to 

be paid to each political subdivision shall be the amount {not including credit memoranda) collected under this Section drning 

the second preceding calendar month by the Department plus an amount the Department determines is necessary to offset any 

amounts that were erroneously paid to a different taxing body, and not including an amount equal to the amount of refunds 

made during the second preceding calendar month by the Department, less 3% of that amount, which shall be deposited into 

the Tax Compliance and Administration Fund and shall be used by the Department, subject to appropriation, to cover the costs 

of the Department in administering and enforcing the provisions of this Section, on behalfof such political subdivision, 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 political subdivision. Within 10 days aflerreceipt by the Comptrol!erofthe disbursement 

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. The proceeds of the tax paid to political subdivisions under this Section shall be deposited into either {i) the ST AR 

Bonds Tax Allocation Fund by the political subdivision if the political subdivision has designated them as pledged ST AR 

revenues by resolution or ordinance or {ii) the political subdivision's general corporate fund if the political subdivision has not 

designated them as pledged ST AR re\'enues. 

An ordinance or resolution imposing or discontinuing the tax under this Section or effecting a change in the rate thereof shall 

either {i) be adopted and a certified copy thereof filed with the Department on or before the first day of April, whereupon the 

Department, if all other requirements of this Section are met, shall proceed to administer and enforce this Section as of the first 

day of July next following the adoption and filing; or (ii) be adopted and a certified copy thereof filed with the Department on 

or before the first day of October, whereupon, if all other requirements of this Section are met, the Department shall proceed 

to administer and enforce this Section as of the first day of January next following the adoption and filing. 

The Department of Revenue shall not administer or enforce an ordinance imposing, discontinuing, or changing the rate of the 

tax under this Section until the political subdivision also pro\'ides, in the manner prescribed by the Department, the boundaries 

of the ST AR 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 ST AR bond 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 

by the Department beginning on the following July I and on or before October 1 for administration and enforcement of the tax 

under this Section by the Department beginning on the following January I. The Department of Revenue shall not administer 

or enforce any change made to the boundaries of a ST AR 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 of the 

change, addition, or deletion beginning on the following July 1 and on or before October I for administration and enforcement 

by the Department of the 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. If a retailer is incorrectly included or excluded 
470131. STAR bond occupation taxes, 50 lLCS 470131 

from the list of those required to collect the tax under this Section, both the Department of Revenue and the retailer shall be 

held ham1kss ifthey reasonably relied on infomtation provided by the political subdivision. 

A political subdivisim1 that imposes the tax under this Section must submit to the Department of Revenue any other information 

as the Department may require that is necessary for the administration and enforcement of the 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 of engaging 

in any business ,vhich under the Constitution of the L'nited States may not be made the subject of taxation by this State. 

(e) When ST AR bond project costs, including, without limitation, al! political subdivision obligations financing STAR bond 

project costs, have been paid, any surplus fonds then remaining in the ST AR Bonds Tax Allocation Fund shall be distributed to 

the treasurer of the political subdivision for deposit into the political subdivision's general corporate fund. Upon payment of all 

ST AR bond project costs and retirement of obligations. but in no event later than the maximum maturity date of the last of the 

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 of the ordinance with the Department in the form and manner 

as described in this Section. 

Credits 

P.A. 96-939, § 3 L eff. June 24. 20 I 0. 

RESEARCH REFERENCES 

Et1cyclopedias 

111inois Law and Practice Counties§ 38, Power to Borrow Money and Incur Debts, Generally. 

50 LL.C.S. 470/31. IL ST CH 50 § 470131 

Current through P.A. 97-680 of the 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 

Act 470. InnO\·ation Development and Economy Act 

~ 31. ST AR bond occupation taxes. 

50 ILCS 470/31 

470/31. STAR bond occupation taxes 

Effective: July 27, 2015 

Currentness 

(a) If the corporate authorities ofa political subdivision have established a STAR bond district and haYe elected to impose a 

tax by ordinance pursuant to subsection (b) or ( c) of this Section, each year after the date of the adoption of the ordinance and 

until all STAR bond project costs and all political subdivision obligations financing the STAR bond project costs, if any, have 

been paid in accordance ,vith the ST AR bond project plans, but in no e\'ent longer than the maximum matmity date of the last 

of the 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 of Revenue in the same manner as 

all retailers' occupation taxes and service occupation taxes imposed in the political subdivision imposing the tax. The corporate 

authorities of the political subdiYision shall deposit the proceeds of the taxes imposed under subsections (b) and ( c) into either 

(i) a special fond held by the corporate authorities of the political subdivision called the STAR Bonds Tax Allocation Fund 

for the purpose of paying STAR bond project costs and obligations incurred in the payment of those costs if such taxes are 

designated as pledged ST AR revenues by resolution or ordinance of the political subdivision or (ii} the political subdivision's 

general corporate fund if such taxes are not designated as pledged ST AR revenues by resolution or ordinance. 

The tax imposed under this Section by a municipality may be imposed only on the portion of a ST AR bond district that is within 

the boundaries oft he municipality. For any part of a ST AR bond district thatlies outside of the boundaries of that municipality, 

the municipality in which the other part of the STAR bond district lies (or the county, in cases where a portion of the STAR 

bond district lies in the unincorporated area of a county) is authorized to impose the tax under this Section on that pait of the 

STAR bond district. 

(b) The corporate authorities of a political subdivision that has establisJ1ed a ST AR bond district under this Act may, by ordinance 

or resolution, impose a STAR Bond Retailers' Occupation Tax upon all persons engaged in the business of selling tangible 

personal prope11y, other than an item of tangible personal property titled or registered with an agency of this State's government, 

at retail in the ST AR bond district at a rate not to exceed I% of the gross receipts from the sales made in the comse of that 

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 of rendering 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 may be assessed as an incident thereof shall be collected and 

enforced by the Department of Revenue. The certificate of registration that is issued by the Department to a retailer under the 

Retailers' Occupation Tax Act shal\ permit the retailer 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 such ordinance or resolution or 
470!31. STAR bond occupation taxes. JL ST CH 50 § 470/31 

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 in the manner hereinafter provided, and to detennine all rights to credit memoranda 

arising on account of the erroneous payment of tax or penalty under this 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, and duties, and be subject to the same conditions, restrictions, limitations, penalties, exclusions, 

exemptions. and definitions of terms and employ the same modes of procedure. as are prescribed in Sections 1, 1 a through 1 o, 

2 through 2-65 (in respectto all pro\'isions therein other than the State rate of tax). 2c through 2h, 3 (except as to the disposition 

of taxes 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 of the Uniform Penalty and Interest Act. as fully a~ if those pro\"isions 

were set forth herein. 

!fa tax is imposed under this subsection (b), a tax shall also be imposed under subsection (c) of this Section. 

{c) If a tax has been imposed under subsection (b), a STAR Bond Service Occupation Tax shall also be imposed upon all 

persons engaged. in the ST AR bond district, in the business of making sales of service, who. as an incident to making those sales 

of sen·ice, transfer tangible personal propeity within the ST AR bond district. either in the fonn of tangible personal property 

or in the fom1 of real estate as an incident to a sale of service. The tax shall be imposed at the same rate as the tax imposed 

in subsection (b) and shall not exceed I 'Vo of the 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 off the 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 of rendering it usable by a person with a disability. and insulin, urine testing materials, syringes, and 

needles used by diabetics, for human llSe. 

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 certificate of registration that is issued by the Department to a retailer llnder 

the Retailers' Occupation Tax Act or under the 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 of taxes and 

penalties so collected in the manner hereinafter provided, and to detennine a]\ rights to credit memoranda arising on account of 

the erroneous payment of tax 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, 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 of procedure as are prescribed in Sections 2, 2a through 2d, 3 through 3-50 (in respect 

to all provisions therein other than the State rate of tax), 4 (except that the reference to the State shall be to the STAR bond 

district), 5, 7, 8 (except that the jurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the 

political subdiYision), 9 (except as to the disposition of taxes and penalties collected, and except that the returned merchandise 

credit for this tax may not be taken against any State tax), 10, ! l, 12 ( except the reference therein to Section 2b of the Retailers' 

Occupation Tax Act), 13 (except that any reference to the State shall mean the political subdivision), the first paragraph of 

Section 15, and Sections 16, I 7, 18, 19 and 20 of the Service Occupation Tax Act and all provisions of the Uniform Penalty 

and Interest Act, as fully as if those provisions were set forih herein. 

Ifa tax is imposed under this subsection (c), a tax shall also be imposed under subsection (b) of this 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 Section to a claimant instead of issuing a credit 

memorandum, the Department shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified 

and to the person named in the notification from the Department. The refund shall be paid by the State Treasurer out of the 

STAR Bond Retailers' Occupation Tax Fund. 

The Department shall immediately pay over to the State Treasurer, ex officio, as trustee. all taxes, penalties, and interest collected 

under this Section for deposit into the STAR Bond Retailers' Occupation Tax Fund. On or before the 25th day of each calendar 

month, the Depm1ment shall prepare and certify to the Comptroller the disbursement of stated sums of money to named political 

subdivisions from the ST AR Bond Retailers' Occupation Tax Fund, the political subdi'visions to be those from which retailers 

ha Ye paid taxes or penalties under this 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 under this Section during 

the second preceding calendar month 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 of refunds 

made during the second preceding calendar month by the Department, less 3% of that amount, which shall be deposited into 

the Tax Compliance and Administration Fund and shall be used by the Department, subject to appropriation, to cover the costs 

of the Department in administering and enforcing the provisions of this Section, on behalf of such political subdivision, and not 

including any amount that the Department detennines is necessary to offset any amounts that were payable to a different taxing 

body but were erroneously paid to the political subdivision. Within 10 days after receipt by the Comptroiler of the 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 of the tax paid to political subdivisions under this Section shall be deposited into either (i) the ST AR 

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 if the political subdivision has not 

designated them as pledged ST AR revenues. 

An ordinance or resolution imposing or discontinuing the ta,; under this Section or effecting a change in the rate thereof shall 

either (i) be adopted and a ee11ified copy thereof filed with the Depmiment on or before the first day of April, whereupon the 

Department, if all other requirements of this Section are met, shall proceed to administer and enforce this Section as of the firsl 

day of July next following the adoption and filing; or (ii) be adopted and a certified copy thereof filed with the Department on 

or before the first day of October, whereupon, if all other requirements of this Section are met, lhe Department shall proceed 

to administer and enforce this Section as of the first day of January next following the adoption and filing. 

The Department of Revenue shall not administer or enforce an ordinance imposing, discontinuing, or changing the rate of the 

tax under this Section until the political subdivision also provides, in the manner prescribed by the Depai1ment, the boundaries 

of the ST AR bond district and each address in the ST AR 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 must provide this boundary and 

address infonnation to the Department on or before April l for administration and enforcement orthe tax under this Section 

by the Department beginning on the following July I and on or before October 1 for administration and enforcement of the tax 

under this Section by the Depm1111ent beginning on the following January 1. The Department of Revenue shall not administer 

or enforce any change made to the boundaries of a 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 of the 

change, addition, or deletion beginning on the following July I and on or before October l for administration and enforcement 

by the Department of the 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. If a retailer is incorrectly included or excluded 

f 1i:::1: 
470/31. STAR bond occupation taxes. IL ST CH 50 § 470/31 

from the list of those required to collect the tax under this Section, both the Department of Revenue and the retailer shal! be 

held harmless if they reasonably relied on infonnation provided by the political subdivision. 

A political subdivision that imposes the tax under this Section must submit to the Department ofRevenue any other information 

as the Department may require that is necessary for the administration and enforcement of the 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 of previous 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 of engaging 

in any business which under the Constimtion ofthe United States may not be made the subject of taxation by this State. 

(e) When ST AR bond project costs, including, without limitation, a11 political subdivision obligations financing ST AR bond 

project costs, ha Ye been paid, any surplus funds then remaining in the ST AR Bonds Tax Allocation Fund shall be distributed to 

the treasurer of the political subdiYision for deposit into the political subdivision's general corporate fund. lJpon payment of all 

ST AR bond project costs and retirement of obligations. but in no event later than the maximum maturity date of the last of the 

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 of the ordinance with the Department in the fom1 and manner 

as described in this Section. 

Crrdits 

P.A. 96-939, ~ 3 Leff. 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 

Current through P.A. 99-487 of the 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 Statutes Annotated Currentness 

Chapter 65. Municipalities 

Act 5. Illinois Municipal Code (Refs & Annas) 

Article 11. Corporate Powers and Functions (Refs & Annas) 

Public Works, Buildings and Properl}' 

Commercial Blight Areas 

Division 74.3. Business Dishict Development and Redevelopment (Refs & Annas) 

5/11-74.3-6. Business district revenue and obligations 

§ 11-74.3-6. Business district revenue and obligations. 

(a) If the corporate authorities of a 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) of this Section, each year after the date of the 

approval of the ordinance and until all business district project costs and all municipal obligations financing the business district 

project costs, if any, have been paid in accordance with the business district development or redevelopment plan, but in no event 

longer than 23 years after the date of adoption of the ordinance approving the business district de\'elopmenl or redevelopment 

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 in the municipality imposing the tax and a[! 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 a!! hotel operators' occupation taxes imposed in the 

municipality imposing the tax. The corporate authorities of the municipality shall deposit the proceeds of the taxes imposed 

under subsections (b), (c), and (d) into a special fund held by the corporate authorities of the mnnicipality called the Business 

District Tax Allocation Fund for the purpose of paying business district project costs and obligations incurred in the payment 

of those costs. 

(b) The corporate authorities of a municipality that has established a business district under this Division 74.3 may, by ordinance 

or resolution, impose a Business District Retailers' Occupation 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 business district at a rate not to exceed 1 % of the gross receipts from the sales made in the course of such 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 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 used by diabetics. 

for human use. 

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 certificate of registration that is issued by the Department to a retailer under the 

Retailers' Occupation Tax Act shall pennit the retailer 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 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 and penalties due under this subsection in the manner hereinafterprovided; and to detennine all rights to credit memoranda 

arising on account of the en-oneous payment of tax 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 subject to the same conditions, restrictions, limitations, penalties, exclusions, 

exemptions, and definitions ofterms and employ the same modes of procedure, as are prescribed in Sections I, la through Jo, 

2 through 2-65 (in respect to all provisions therein other than the Stale rate of tax), 2c through 2h, 3 (except as to the disposition 
5111·74.3-6. Business district revenue and obligations, 65 lLCS 5111-74.3-6 

of taxes 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 of the 

Retailers' Occupation Tax Act and all proYisions of the L'niform Penalty and Interest Act, as fully as if those 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 stated in combination, in a single amount. 

with State taxes that sellers are required to collect under the Use Tax Act, in accordance with such bracket schedules as the 

Department may prescribe. 

WheneYer the Department detem1ines that a refund should be made under this subsection to a claimant instead of issuing 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 notification from the Department. The refund shall be paid by the State Treasurer out 

of the business district retailers' occupation tax fund. 

The Depmtment shall immediately pay over 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. On or before the 25th day of each 

calendar month, the Department shall prepare and certify to the Comptroller the disbmsement of stated sums of money to named 

municipalities from the business district retailers' occupation tax fund, the municipalities to be those from which retailers have 

paid taxes or penalties 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 under this subsection during the 

second preceding calendar month by the Depa1tment plus an amount the Department detennines is necessary to offset any 

amounts that were erroneously paid to a differelll taxing body. and not including an amount equal to the amount of refunds made 

during the second preceding calendar month by the Department, less 2% of that amount, which shall be deposited into the Tax 

Compliance and Administration Fund and shall be used by the Department. subject to appropriation, to cover the costs of the 

Department in administering and enforcing the provisions of this subsection, on behalf of such 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 of the 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 of the 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 certified copy thereof filed with the Department on or before the first day of April, whereupon the 

Department, if aJl other requirements of this subsection are met, shall proceed to administer and enforce this subsection as of the 

first day of July next following the adoption and filing: or (ii) be adopted and a certified copy thereof filed with the Department 

on or before the first day of October, whereupon, if all other requirements of this subsection are met, the Department shall 

proceed to administer and enforce this subsection as of the first day of January next following the adoption and filing. 

The Department of ReYenue shall not administer or enforce an ordinance imposing, discontinuing, or changing the rate of the 

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 determine by its address whether a business 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 of the tax under this subsection by the Department beginning on the following July l ai1d on or before October 

I for administration and enforcement of the tax under this 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 of a business district until 

the municipality reports the boundary change to the Department in the manner prescribed by the Department. The municipality 

must provide this boundary change infonnation to the Department on or before April ! for administration and enforcement by 

the Department of the change beginning on the following July I and on or before October 1 for administration and enforcement 

by the Department of the change beginning on the following January I. The retailers in the business district shall be responsible 

for charging the tax imposed under this subsection. If a retailer is incorrectly included or excluded from the list of those required 
5111-74.3-S. Business district revenue and obligations, 65 ILCS 5!11·74.3·6 

to collect the tax under this subsection. both the Department of Revenue and the retailer shall be held harmless if they reasonably 

relied on information provided by the municipality. 

A municipality that imposes the tax under this subsection must submit to the Department of Revenue any other information as 

the Department may require for the administration and enforcement of the tax. 

When certifying the amount of a monthly disbursement to a municipality under this subsection. the Department shall increase 

or decrease the amount by an amount necessary to offset any misallocation of previous disbursements. The offset amount shall 

be the amount erroneously disbursed within the previous 6 months from the time a misallocation is discovered. 

Nothing in this subsection shall be construed to authorize the municipality to impose a tax upon the privilege of engaging in 

any business which under the Constitution of the United States may not be made the subject of taxation by this State. 

Ifa tax is imposed under this subsection (b), a tax shall also be imposed tmder subsection (c) of this Section. 

(c) Jfa tax has been imposed under subsection (b), a Business District Service Occupation Tax shall 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 those sales of 

service, transfer tangible personal property within the business district, either in the fom1 of tangible personal property or in the 

fom1 of real estate as an incident to a sale of serYice. The tax shall be imposed at the same rate as the tax imposed in subsection 

(b) and shall not exceed 1 % of the 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 

off the 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 motor vehicle for the 

purpose of rendering it usable by a disabled person. and insulin. mine testing materials, syringes, and needles used by diabetics, 

for human use. 

( The tax imposed under this subsection and all ciYil penalties that may be assessed as an incident thereof shall be collected and 

enforced by the Department of Revenue. The certificate of registration which is issued by the Department to a retailer under 

the Retailers' Occupation Tax Act or under the Service Occupation Tax Act shall permit such registrant to engage in a business 

which is taxable under any ordinance or resolution enacted pursuant to this 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 of taxes and 

penalties so collected in the manm:r hereinafter provided: and to determine all rights to credit memoranda arising on account of 

the erroneous payment of tax or penalty under this subsection. In the administration of, and compliance with this subsection, the 

Department and persons \vho 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 of 

te1ms and employ the same modes of procedure as are prescribed in Sections 2, 2a through 2d, 3 through 3-50 (in respect to all 

provisions therein other than the State rate of tax), 4 (except that the reference to the State shall be to the business district), 5, 7, 

8 (except that the jurisdiction to which the tax shall be a debt to the extent indicated in that Section 8 shall be the municipality), 

9 ( except as to the disposition of taxes and penalties collected, and except that the rett1med merclmndise credit for this tax may 

not be taken against any State tax), 10, l], 12 (except the reference therein to Section 2b of the Retailers' Occupation Tax Act), 

l 3 ( except that any reference to the State shall mean the municipality), the first paragraph of Section 15, and Sections 16, 17, 

18, 19 and 20 of the Service Occupation Tax Act and all provisions of the Unifom1 Penalty and Interest Act, as fully as if those 

provisions were set forth herein. 

Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their 

serviceman's tax liability hereunder by separately stating the tax as an additional charge, which charge may be stated in 

combination, in a single amount, with State tax that servicemen are authorized to collect under the Service Use Tax Act, in 

accordance with such bracket schedules as the Department may prescribe. 
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 subsection to a claimant instead of issuing credit 

memorandum, the Department shall notify the State Comptrnller, who shall cause thi: order to be drawn for the amount specified, 

and to the person named. in such notification from the Department. Such refund shall be paid by the State Treasurer out of the 

business district retailers' occupation tax fund. 

The Department shall forthv,·ith pay o\"er to the State Treasurer, 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 of each 

calendar month. the Department shall prepare and c<!Tlify to the Comptroller the disbursement of stated sums of money 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 be paid lo 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% of that amount, which shall be deposited into the Tax 

Compliance and Administration Fund and shall be used by the Department, subject to appropriation, to cover the costs of the 

Department in administering and enforcing the provisions of this subsection, 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. Within 10 

days after receipt, by the Comptroller, of the 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 of the 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 thereof filed with the Department on or before the first day of April, whereupon 

the Department, if all other requirements of this subsection are met, shall proceed to administer and enforce this subsection 

as of the first day of July next following the adoption and filing; or {ii) be adopted and a certified copy thereof tiled \Vith the 

Department on or before the first day of October, whereupon, if all other conditions of this subsection are met, the Depat1ment ( 

shall proceed to administer and enforce this subsection as of the first day of January next following the adoption and tiling. 

The Department of Revenue shall not administer or enforce an ordinance imposing, discontinuing, or changing the rate of the 

tax under this subsection, until the municipality also proYides, ln the manner prescribed by the Department. the boundaries of 

the business district in such a way that the Department can determine by its address whether a business is located in the business 

district. The municipality must proYide this boundary information to the Department on or before April I for administration 

and enforcement of the tax under this subsection by the Dcpm1ment beginning on the following July I and on or before October 

I for administration and enforcement of the tax under this subsection by the Deparm1ent beginning on the following January 

J. The Department of ReYenue shall not administer or enforce any change made to the boundaries of a business district until 

the municipality reports the boundary change to the Depai1ment in the manner prescribed by the Department. The municipality 

must provide this boundary change infomrntion to the Department on or before April I for administration and enforcement by 

the Depat1ment of the change beginning on the following July I and on or before October I for administration and enforcement 

by the Department of the change beginning on the following January l. The retailers in the business district shall be responsible 

for charging the tax imposed under this subsection. If a retailer is incorrectly included or excluded from the list of those required 

to collect the tax under this subsection, both the Department ofRewnue and the retailer shall be held harmless if they reasonably 

relied on infon11ation proYided by the municipality. 

A municipality that imposes the tax under this subsection must submit to the Department of Revenue any other information as 

the Departmem may require for the administration and enforcement of the tax. 

Nothing in this subsection shall be constmed to authorize the municipality to impose a tax upon the privilege of engaging in 

any business which under the Constitution of the United States may nol be made lhe subject of taxation by the State. 

If a tax is imposed under this subsection ( c ), a tax shall also be imposed under subsection (b) of this Section. I 
I 

( 

( 

5/11-7 4.3·6. Business district revenue and obligations, 65 1LCS 5111-74.3-6 

( d) By ordinance. a municipality that has established a business district under this DiYision 74.3 may impose an occupation tax 

upon all persons engaged in the business district in the business of renting, leasing, or letting rooms in a hotel, as defined in 

the !lo(el Operators' Occupation Tax Act, at a rate not to exceed !'Yo of the gross rental receipts from the renting, leasing, or 

letting of hotel rooms within the business district, to be imposed only in 0.25% increments, excluding, however, from gross 

rental receipts the proceeds of renting, leasing, or letting to pemmnent residents of a 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 may be assessed as an incident to that tax 

shall be collected and enforced by the municipality imposing the tax. The municipality shall ha\'e full power to administer and 

enforce this subsection. to collect all taxes and penalties due under this subsection. to dispose of taxes and penalties so collected 

in the manner pro,·ided in this subsection, and to detem1ine all rights to credit memoranda arising on account of the erroneous 

payment of tax or penalty under this subsection. In the administration of and compliance with this subsection. the municipality 

and persons who are subject to this subsection shall have the same rights, remedies, privileges, immunities, powers, and duties, 

shall be subject to the same conditions, restrictions, limitations, penalties, and definitions of terms, and shall employ the same 

modes of procedure as are employed with respect to a tax adopted by the municipality under Section 8-3-14 of this Code. 

Persons subject to any tax imposed under the authority granted in this subsection may reimburse themse]\'es for their tax liability 

for that tax by separately stating that tax as an additional charge, which charge may be stated in 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 of engaging in any 

business which 1111der the Constitution of the United States may not be made the subject of taxation by this State. 

The proceeds of the tax imposed under this subsection shall be deposited into the Business District Tax Allocation Fund. 

( e) Obligations issued pursuant to subsection ( 14) of Section 11-74.3-3 shall be retired in the manner provided in the ordinance 

authorizing the issuance of those obligations by the receipts of taxes levied as autho1ized in subsections ( 12) and ( 13) of Section 

11-74.3-3. The ordinance shall pledge all of the amounts in and to be deposited in the Business District Tax Allocation Fund 

to the payment of business 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 of the electors shall be required as a condition to the issuance of those obligations. The ordinance 

authorizing the obligations may require that the obligations contain a recital that they are issued pursuant to subsection (14) 

of Section 11-74.3-3 and this recital shall be conclusi,·e evidence of their validity and of the regularity of their issuance. The 

corporate authorities of the municipality may also issue its obligations to refund, in whole or in part, obligations previously 

issued by the municipality under the authority of this Code, whether at or prior to maturity. Al! obligations issued pursuant to 

subsection ( 14) of Section 11 ~ 74.3-3 shall not be regarded as indebtedness of the municipality issuing the obligations for the 

purpose of any limitation imposed by law. 

(fl When business 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 of all 

business district project costs and retirement of obligations, but in no event more than 23 years after the date of adoption 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) of Section I l-74.3-3. 

CREDIT(S) 

Laws 1961, p. 576, § 11-74.3-6, added by P.A. 93- l 053, § 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 subject of an Amendatmy Veto by the governor on August 27. 2004. The Amendatmy Veto was overridden 

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 incorporated the enactment of this section by P.A. 93-1053. 

LIBRARY REFERENCES 

Municipal Corporations 962. 

Westlaw Topic No. 268. 

C.J.S. \!unicipal Corporations*{ 1739 to l 742, 174X. 

Current through P.A. 94-727 of the 2006 Reg. Sess. 

( 
5/11-74.3-6. Business distrlct revenue and obligations; .... lL ST CH 65 §.., 

( ·vvest's Smith-Hurd Illinois Compiled Statutes Annotated 

( 

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 Development and Rcdewlopment (Refs & Annos) 

65 ILCS 5/11-74.3-6 

5/ 11-74.3-6. Business district 1-e,·enue and obligations; business district tax allocation fund 

EffectiYe: July 27, 2015 

Currentness 

§ 11-74.3-6. Business district reYenue and obligations; business district tax allocation fund. 

(a) If the corporate authorities of a 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) of Section 11-74.3-3, then each year after 

the date of the approval of the ordinance but tenninating upon the date all business district project costs and all obligations 

paying or reimbursing business district project costs, if any, haYe been paid, but in no event later than the dissolution date, 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 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' occupation taxes imposed in the municipality 

imposing the tax. The corporate authorities of the municipality sha!l deposit the proceeds of the taxes imposed under subsections 

( I 0) and ( 1 1) of Section 11-74.3-3 into a special fund of the municipality called the "[Name of] Business District Tax Allocation 

Fund" for the purpose of paying or reimbursing business district project costs and obligations incurred in the payment of those 

costs. 

(b) The corporate authorities of a municipality that has designated a business distlict under this Law may, by ordinance, impose a 

Business District Retailers' Occupation 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 business 

district at a rate not to exceed I% of the gross receipts from the sales made in the course of such 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 has been prepared for immediate consumption), prescription 

and nonprescription medicines, drugs, medical appliances, modifications to a motor vehicle for the purpose of rendering it 

usable by a person 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 may be assessed as an incident thereof shall be collected and 

enforced by the Department of Revenue. The certificate of registration that is issued by the Department to a retailer under the 

Retailers' Occupation Tax Act shall permit the retailer to engage in a business that is taxable 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 Revenue shall have full power to administer and enforce this subsection; to collect all 

taxes and penalties due under this subsection in the manner hereinafter provided; and to determine all rights to credit memoranda 

( arising on account of the erroneous payment of tax 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, and be subject to the same conditions, restrictions, limitations. penalties, exclusions, 

exemptions, and definitions of terms and employ the same modes of procedure, as are prescribed in Sections 1, I a through Io, 

2 through 2-65 (in respect to all provisions therein other than the State rate of tax), 2c through 2h, 3 (except as to the disposition 

of taxes 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 of the 

Retailers' Occupation Tax Act and all pro\·isions of the Uniforn1 Penalty and Interest Act, as fully as if those 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 

subsection by separately stating the tax as an additional charge. which charge may be stated in combination. in a single amount, 

with State taxes that sellers are required to collect under the 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 of issuing 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 notification from the Department. The refund shall be paid by the State Treasurer out 

of the business district retailers' occupation tax fund. 

The Department shall immediately pay oYer to the State Treasurer, ex officio, as trustee, all taxes, penalties, and interest collected 

under this 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 of the Department of 

Re\'entte, the Comptroller slmll order transferred, 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. 

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 cert if)' to the Comptrolkr the disbursement of stated sums of money to named municipalities from the business 

district retailers' occupation tax fund, the municipalities to be those from which retailers 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 plus an amount the Depa11ment determines is necessmy to offset any amounts that were erroneously paid to a 

different taxing body, and not including an amount equal to the amount of refunds made during the second preceding calendar 

month by the Oepmiment. less 2% of that amount, which shall be deposited into the Tax. Compliance and Administration 

Fund and shall be used by the Department, subject lo appropriation, to cover the costs of the Department in administering and 

enforcing the provisions of this subsection, on behalf of such municipality, and not including any amount 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, and not including any amounts that are transferred to the ST AR Bonds Revenue Fund. Within 10 days afterreceipt 

by the Comptroller of the 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 of the tax paid to municipalities under this subsection shall be 

deposited into the Business District Tax Allocation Fund by the municipality. 

An ordinance imposing or discontinuing the tax under this subsection or effecting a change in the rate thereof shall either (i) be 

adopted and a certified copy thereof filed with the Department on or before the first day of April, whereupon the Depat1ment, 

if all other requirements of this subsection are met, shall proceed to administer and enforce this subsection as of the first day 

of July next following the adoption and filing; or (ii) be adopted and a certified copy thereof filed with the Department on or 

before the first day of October, whereupon, if all other requirements of this subsection are met, the Department shall proceed 

to administer and enforce this subsection as of the first day of January next following the adoption and filing. 

( 
5/11-74.3-6. Business district revenue and obligations; .... JL ST CH 65 § ... 

The Depa1tment of Revenue shall not administer or enforce an ordinance imposing, discontinuing, or changing the rate of the 

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 of the 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 following January I. The Department of Revenue shall not administer or enforce any 

change made to the boundaries of a business 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 by the Department. The 

municipality must provide this boundary change infonnation or address change, addition, or deletion to the Depaiiment on or 

before April 1 for administration and enforcement by the Department of the change beginning on the following July J and on 

or before October I for administration and enforcement by the Department of the change beginning on the following January 

1. The retailers in the business district shall be responsible for charging the tax imposed under this subsection. If a retailer is 

incorrectly included or excluded from the list of those required to collect the tax under this subsection, both the Department of 

ReYenue and the retailer shall be held harmless if they reasonably relied on infonnation provided by the municipality. 

A municipality that imposes the tax under this subsection must submit to the Department of ReYcnue any other information as 

the Department may require for the administration and enforcement of the tax. 

\\'hen certifying the amount of a 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 of previous 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 of engaging in 

any business which under the Constitution of the United States may not be made the subject of taxation by this State. 

If a tax is imposed under this subsection (b ). a tax shall also be imposed under subsection (c) of this Section. 

(c) If a 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 of making sales of service, who, as an incident to making those sales of 

service, transfer tangible personal property within the business district, either in the form of tangible personal property or in the 

form ofreal estate as an incident to a sale of service. The tax shall be imposed at the same rate as the tax imposed in subsection 

(b) and shal! not exceed I% of the 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 

off the 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 of rendering it usable by a person 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 may be assessed as an incident thereof shall be collected and 

enforced by the Department of ReYenue. The certificate of registration which is issued by the Department to a retailer under 

the Retailers' Occupation Tax Act or under the Service Occupation Tax Act shall permit such registrant to engage in a business 

wl1ich 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 Revenue shall have full power 

lo administer and enforce this subsection; to collect all taxes and penalties due under this subsection; to dispose of taxes and 

penalties so collected in the manner hereinafter provided; and to detenninc a!I rights to credit memoranda arising on account of 

the erroneous payment of tax 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, privileges, immunities, powers 

and duties, and be subject to the same conditions, restrictions, limitations, penalties, exclusions, exemptions, and definitions of 
511 t-74,3-6. Business district revenue and obligations; ... , IL ST CH 65 § .. 

ten11S and employ the same modes of procedure as are prescribed in Sections 2, 2a through 2d. 3 through 3-50 (in respect to all 

provisions therein other than the State rate of tax). 4 (except that the reference to the State shall be to the business district), 5, 7, ( 

8 (except that the jurisdiction lo which the tax shall be a debt to the extent indicated in that Section 8 shall be the municipality), 

9 ( except as to the disposition of taxes and penalties collected, and except that the returned merchandise credit for this tax may 

not be taken against any State tax), I 0, l l. 12 (except the reference therein to Section 2b of the Retailers' Occupation Tax Act). 

13 (except that any reference to the State shall mean the municipality), the first paragraph of Section 15. and Sections 16, 17, 

18, 19 and 20 ofthe Service Occupation Tax Act and all provisions of the Unifonn Penalty and Interest Act, as folly as if those 

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\·er the Department determines that a refund should be made under this subsection to a claimant instead of issuing credit 

memorandum, the Department shall notify the State Comptrol!cr. who shall cause the order to be drawn for the amount specified, 

and to the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out of the 

business district retailers' occupation tax fund. 

The Department shall forthwith pay over 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 of each month. beginning January I, 2011, upon certification of the Department of 

Re\'enue. the Comptroller shall order transferred, 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 

Afler the monthly transfer to the ST AR Bonds Rewnue Fund, on or before the 25th day of each calendar month, the Depm1ment 

shall prepare and ce1tify to the Comptro!ler the disbursement of stated sums of money 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 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 of the Depaitmcnt in 

administering and enforcing the provisions of this subsection. and not including an amount equal to the amount of refimds 

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 Ftmd. Within IO days after receipt, by the Comptroller, of the 

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 

such ce1tification. The proceeds of the tax paid to municipalities under this subsection shall be deposited into the Business 

District Tax Allocation Fund by the municipality. 

An ordinance imposing or discontinuing the tax under this subsection or effecting a change in the rate thereof shall either (i) be 

adopted and a certified copy thereof filed with the Department on or before the first day of April, whereupon the Department, 

if all other requirements of this subsection are met, shall proceed to administer and enforce this subsection as of the first day 

of July next following the adoption and filing; or (ii) be adopted and a certified copy thereof filed with the Depmtment on or 

before the first day of October, whereupon, if all other conditions of this subsection are met, the Department shall proceed to 

administer and enforce this subsection as of the first day of Janumy next following the adoption and filing. 

( 
5/i 1-74.3-6. Business district revenue and obligations; .... JL ST CH 65 § ... 

The Department of Revenue shall not administer or enforce an ordinance imposing, discontinuing, or changing the rate of the 

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 of the 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 of Revenue shall not administer or enforce any change made to the 

boundalies of a business district or address change, addition, or deletion until the municipality reports the botmdary change 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 and enforcement by the Department of the change begi1ming on the following July 1 and on or before October 1 

for administration and enforcement by the Department oflhe change beginning on the following January I. The retailers in the 

business district shall be responsible for charging the tax imposed under this subsection. If a retailer is incorrectly included or 

excluded from the list of those required to collect the tax under this subsection, both the Department of Revenue and the retailer 

shall be held ham1less if they reasonably relied on infommtion provided by the municipality. 

A municipality that imposes the tax under this subsection must submit to the Department of Revenue any other infomrntion as 

the Department may require for the administration and enforcement of the tax. 

Nothing in this subsection shall be constrned to authorize the municipality to impose a tax upon the privilege of engaging in 

any business which under the Constitution of the United States may not be made the subject of taxation by the State. 

lfa tax is imposed under this subsection (c), a tax shall a!so be imposed under subsection {b) of this Section. 

( ( d) By ordinance, a municipality that has designated a business district under U1is Law may impose an occupation tax upon all 

persons engaged in the business district in the business of renting, leasing, or letting rooms in a hotel, as defined in the Hotel 

Operators' Occupation Tax Act, at a rate not to exceed 1 % of the gross rental receipts from the renting, leasing, or letting of hotel 

rooms within the business district, to be imposed only in 0.25% increments, excluding, however, from gross rental receipts the 

proceeds of renting, leasing. or letting to permanent residents of a 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 may be assessed as an incident to that tax 

shall be collected and enforced by the municipality imposing the tax. The municipality shall have foll power to administer and 

enforce this subsection, to collect all taxes and penalties due under this subsection, to dispose of taxes and penalties so collected 

in the manner provided in this subsection, and to detem1i11e all rights to credit memoranda arising on account of the erroneous 

payment of tax or penalty under this subsection. In the administration of and compliance with this subsection, the municipality 

and persons who are subject to this subsection shall have the 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 of procedure as are employed with respect to a tax adopted by the nmnicipality under Section 8-3-I 4 of this Code. 

Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their tax liability 

for that tax by separately stating that tax as an additional charge, which charge maybe stated in combination, in a single amount, 

with State taxes imposed under the 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 of engaging in any 

business which under the Constih1tion of the United States may not be made the subject of taxation by this Stale. 

The proceeds of the tax imposed under this 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 secured by the Business Dist1ict Tax Allocation Fund may be issued to provide for the pay111ent or reimbursement 

of business district project costs. Those obligations. when so issued, shall be retired in the manner provided in the ordinance 

authorizing the issuance of those obligations by the receipts of taxes imposed pursuant to subsections ( 10) and ( l J) of Section 

11-74.3-3 and by other reYenue designated or pledged by the municipality. A municipality may in the ordinance pledge. for 

any period of time up to and including the dissolution date, all or any part of the funds in and to be deposited in the Business 

District Tax Allocation Fund to the payment of business 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 of such 

business district tax allocation fund after the payment of such 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 of the monies 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 

municipaJity shall provide that monies to the credit of the business district tax allocation fund and not subject to such pledge 

or otherwise encumbered or required for payment of contractual 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 of all or any po11ion of any reYenues received or to be 

received by the municipality from the imposition of taxes pursuant to subsection (10) of Section 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 of retailers' occupation taxes or service occupation taxes imposed pursuant to subsection ( 10) 

of Section 11-74.3-3 and recciYed or to be received by the municipality from the de\·elopment or redevelopment of properties 

in the business district. 

( 

Without limiting the foregoing in this Section, the municipality may further secure obligations secured by the business district ( 

tax allocation fund with a pledge. for a period not greater than the term of the obligations and in any case not longer than the 

dissolution date, of any pan or any combination of the following: (i) net revenues of all or part of any business district project: 

(ii} taxes levied or imposed by the municipality on any or all 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 of the municipality; (iv) a mortgage on part or all of the 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 of issue or ( ii) the dissolution date, whichever is earlier. bear 

interest payable at such intervals and at such rate or rates as set forth therein, except as may be limited by applicable Jaw, which 

rate or rates may be fixed or variable, be in such denominations, be in such fom1, either coupon. registered, or book-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 or places 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 thereof to be exercised for the benefit of the municipality and the benefit of the owners of such obligations. provide for 

the holding in trust, i1westment, and use of moneys, funds, and accounts held under an ordinance, provide for assignment of 

and direct payment of the moneys to pay such obligations or to be deposited into such funds or accounts directly to such trustee, 

be subject to such tem1s ofredemption with or without premium, and be sold at such price, all as the corporate authorities shall 

detennine. !\'o referendum approval of the electors shall be required as a condition to the issuance of obligations pursuant to 

this Law except as provided in this Section. 

In the event the municipality authorizes the issuance ofobligrtlions pursuant to the authority of this 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 of Article VII of the 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 of Article \'II of the Illinois Constitution or which are levied in a special service area pursuant to the Special Service Area 

Tax Law, the ordinance authorizing the issuance of those obligations or pledging those taxes sha!l be published 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 of Yoters required to sign a petition requesting the 

question of the issuance of the obligations or pledging such ad valorem taxes to be submitted to the electors; (ii) the time within 

which the petition must be filed: and (iii) the date of the prospectiYe referendum. Tl1e municipal clerk shall proYide a petition 

form to any indiYidual requesting one. 

If no 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 ,vithin that 21-day period a petition is filed with the municipal clerk, 

signed by electors numbering not less than 15% of the number of electors voting for the mayor or president at the last general 

municipal election, asking that the question of issuing obligations using full faith and credit of the municipality as security 

for the cost of paying or reimbursing business district project costs, or of pledging such ad va!orem taxes for the payment of 

those obligations, or both, be submitted to the electors of the municipality, the municipality shall not be authorized to issue 

obligations of the municipality using the full faith and credit of the municipality as security or pledging such ad \'alorem taxes 

for the payment of those obligations, or both. until the proposition has been submitted to and approved by a majority of the 

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 that the obligations shall contain a recital that they are issued pursuant 

to this Law, which recital shall be conclush·e evidence of their validity and of the regularity of their issuance. 

In the event the municipality authorizes issuance of obligations pursuant to this Law secured by the full faith and credit of the 

municipality, the ordinance authorizing the obligations may provide for the levy and collection of a direct annual tax upon all 

taxable property within the municipality sufficient to pay tbe principal thereof and interest thereon as it matures, which levy 

may be in addition to and exclusiYe of the maximum of all 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 of the obligations and the 

municipality certifies the amount ofthose monies available to the county clerk. 

A certified copy of the ordinance shall be filed with the county clerk of each county in which any portion of the municipality 

is situated. and shall constitute the authority for the extension and collection of the 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 of this Law, whether at or prior to maturity. However, the last maturity of the refunding obligations shall 

not be expressed to mature later than the dissolution date. 

ln the event a municipality issues obligations under home mle powers or other legislative authority, the proceeds of which 

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 if those obligations had been issued pursuant to the provisions of this Law. 

No obligations issued pursuant to this Law shall be regarded as indebtedness of the municipality issuing those obligations or 

any other taxing district for the purpose of any limitation imposed by law. 

Obligations issued pursuant to this Law shall not be subject to the provisions of the Bond Authorization 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 been paid, 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 of the municipality. Upon payment of all business district 

project costs and retirement of all obligations paying or reimbursing business district project costs, but in no event more than 

23 years after the date of adoption of the ordinance imposing taxes pursuant to subsection (10) or (11) of Section 11-74.3-3. 

the municipality shall adopt an ordinance immediately rescinding the taxes imposed pursuant to subsection ( I OJ 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, * I G5. 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 of the 2015 Reg. Sess. 

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