55 ILCS 5/5-1006.5
2021 Illinois Compiled Statutes|Chapter 55 - COUNTIES|55 ILCS 5/ - Counties Code.|Article 5 - Powers And Duties Of County Boards

Sec. 5-1006.5. Special County Retailers' Occupation Tax  For Public Safety, Public Facilities, Mental Health, Substance Abuse, 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, mental health, substance abuse, or transportation purposes in that county (except as otherwise provided in this Section), if a  proposition for the  tax has been submitted to the electors of that county and  approved 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 Illinois Highway Code, the county board must publish notice  of the existence of its long-range highway transportation  plan as required or described in Section 5-301 of the Illinois  Highway Code and must make the plan publicly available 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 transportation plan  and  must make the plan publicly available prior to approval of the ordinance or  resolution imposing the tax.If a 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 determined in the enabling resolution. For example, the "XXX Nursing Home" or the "YYY Museum".The county clerk shall certify the  question to the proper election authority, who  shall submit the proposition at an election in accordance with the general  election law.(1) 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 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 every $100 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.  If the county board votes to include a sunset provision, 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 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 every $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), if not terminated earlier by a vote 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 services.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 May 31, 2015 (the effective date of Public Act 99-4), Adams County may impose a public safety retailers' occupation tax and service occupation tax at the rate of 0.25%, as provided in the referendum approved by the voters on April 7, 2015, notwithstanding the omission of the additional information that is otherwise required to be printed on the ballot below the question pursuant to this item (1).(2) The proposition for transportation purposes shall     be in substantially the following form:"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 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 every $100 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.  If the county board votes to include a sunset provision, the proposition for transportation purposes shall be in substantially the following form:"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 shall appear the following:"This would mean that a consumer would pay an     additional (insert amount) in sales tax for every $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), if not terminated earlier by a vote of the county board."For the purposes of this paragraph, transportation     purposes means construction, maintenance, operation, and improvement of public highways, any other purpose for which a county may expend funds under the Illinois Highway Code, and passenger rail transportation.The votes shall be recorded as "Yes" or "No".(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 every $100 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. If the county board votes to include a      sunset provision, 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) 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 every $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), if not terminated earlier by a      vote of the county board."For purposes of this Section, "public facilities     purposes" means 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 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".(4)  The proposition for mental health purposes shall     be in substantially the following form:"To pay for mental health 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 every $100 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. If the county board votes to include a      sunset provision, the proposition for public facilities      purposes shall be in substantially the following form:"To pay for mental health 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 every $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), if not terminated earlier by a      vote of the county board."The votes shall be recorded as "Yes" or "No".(5)  The proposition for substance abuse purposes     shall be in substantially the following form:"To pay for substance abuse 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 every $100 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. If the county board votes to include a      sunset provision, the proposition for public facilities      purposes shall be in substantially the following form:"To pay for substance abuse 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 every $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), if not terminated earlier by a      vote of the county board."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 tangible personal property taxed at the 1% rate under the Retailers' Occupation Tax Act. Beginning December 1, 2019 and through December 31, 2020, this tax is not imposed on sales of aviation fuel unless the tax revenue is expended for airport-related purposes. If the county does not have an airport-related purpose to which it dedicates aviation fuel tax revenue, then aviation fuel is excluded from the tax.  The county must comply with the certification requirements for airport-related purposes under Section 2-22 of the Retailers' Occupation Tax Act.  For purposes of this Section, "airport-related purposes" has the meaning ascribed in Section 6z-20.2 of the State Finance Act. Beginning January 1, 2021, this tax is not imposed on sales of aviation fuel for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.  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 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 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 this Section, and to determine  all rights to credit memoranda arising on account of the erroneous payment of  a tax or penalty under this Section.  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 Sections 1, 1a, 1a-1, 1d, 1e, 1f,  1i, 1j,  1k, 1m, 1n,  2 through 2-70 (in respect to all provisions contained in those Sections  other than the  State rate of tax), 2a, 2b, 2c, 3 (except provisions  relating to  transaction returns and quarter monthly payments, and except that the retailer's discount is not allowed for taxes paid on aviation fuel that are deposited into the Local Government Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e,  5f,  5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the  Retailers' Occupation Tax Act and Section 3-7 of the Uniform Penalty and  Interest Act 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, 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 County  Public Safety, Public Facilities, Mental Health, Substance Abuse, or Transportation Retailers' Occupation Tax Fund or the Local Government Aviation Trust Fund, as appropriate.(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 tangible personal property taxed at the 1% rate under the Service Occupation Tax Act. Beginning December 1, 2019 and through December 31, 2020, this tax is not imposed on sales of aviation fuel unless the tax revenue is expended for airport-related purposes. If the county does not have an airport-related purpose to which it dedicates aviation fuel tax revenue, then aviation fuel is excluded from the tax.  The county must comply with the certification requirements for airport-related purposes under Section 2-22 of the Retailers' Occupation Tax Act.  For purposes of this Section, "airport-related purposes" has the meaning ascribed in Section 6z-20.2 of the State Finance Act. Beginning January 1, 2021, this tax is not imposed on sales of aviation fuel for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.  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 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 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 that the  reference to State in the definition of supplier maintaining a place of  business in this State shall mean the county), 2a, 2b, 2c, 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 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 retailer's discount is not allowed for taxes paid on aviation fuel that are deposited into the Local Government Aviation Trust Fund), 10, 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 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, 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 County Public Safety, Public Facilities, Mental Health, Substance Abuse, or Transportation Retailers' Occupation Fund or the Local Government Aviation Trust Fund, as appropriate.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) Except as otherwise provided in this paragraph, 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, Public Facilities, Mental Health, Substance Abuse, or Transportation Retailers'  Occupation Tax Fund, which  shall be an unappropriated trust fund held outside of the State treasury. Taxes and penalties collected on aviation fuel sold on or after December 1, 2019 and through December 31, 2020, shall be immediately paid over by the Department to the State Treasurer, ex officio, as trustee, for deposit into the Local Government Aviation Trust Fund. The Department shall only pay moneys into the Local Government Aviation Trust Fund under this Act for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.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 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 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 and not including taxes and penalties collected on aviation fuel sold on or after December 1, 2019 and through December 31, 2020) 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 determines is  necessary to offset any amounts that were payable to a different taxing body  but were erroneously paid to the county, (iii) any amounts that are transferred to the STAR Bonds Revenue Fund, and (iv) 1.5% of the remainder, which shall be transferred into the Tax Compliance and Administration Fund. The Department, at the time of each monthly disbursement to the counties, shall prepare and certify to the State Comptroller the amount to be transferred into the Tax Compliance and Administration Fund under this subsection.  Within 10 days after receipt by the  Comptroller of the disbursement certification to the counties and the Tax Compliance and Administration 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 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  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.(d) For the purpose 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 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 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.(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 1, 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 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 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.Beginning January 1, 2014, 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 any 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) 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.  The offset  amount shall be the amount erroneously disbursed within the previous 6 months  from the time a miscalculation is discovered.(g-5) Every county authorized to levy a tax  under this Section shall, before it levies such  tax, establish a 7-member mental health board, which shall have the same powers and duties and be constituted in the same manner as a community mental health board established under the Community Mental Health Act. Proceeds of the tax under this Section that are earmarked for mental health or substance abuse purposes shall be deposited into a special county occupation tax fund for  mental health and substance abuse. The 7-member mental health board established under this subsection shall administer the special county occupation tax fund for mental health and substance abuse in the same manner as the community mental health board administers the community mental health fund under the Community Mental Health Act.(h) This Section may be cited as the "Special County Occupation Tax  For Public Safety, Public Facilities, Mental Health, Substance Abuse, 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 share tax proceeds received under this Section for public safety purposes, including proceeds received before August 4, 2009 (the effective 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 construction,  maintenance, operation, and improvement 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, 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 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 to 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.   (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-275, eff. 8-9-19; 101-604, eff. 12-13-19; 102-379, eff. 1-1-22.)