55 ILCS 5/5-1007
2021 Illinois Compiled Statutes|Chapter 55 - COUNTIES|55 ILCS 5/ - Counties Code.|Article 5 - Powers And Duties Of County Boards

 (from Ch. 34, par. 5-1007)Sec. 5-1007. Home Rule County Service 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 5-1006 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 1/4% increments. On and after September 1, 1991, this additional tax may  not be imposed on tangible personal property taxed at the 1% rate under the Service Occupation Tax Act. Beginning December 1, 2019, 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.  This exclusion for aviation fuel only applies 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 changes made to this Section by this amendatory Act of the 101st General Assembly are a denial and limitation of home rule powers and functions under subsection (g) of Section 6 of Article VII of the Illinois Constitution.  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 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 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 of terms, and employ the same  modes of procedure, as are prescribed in Sections 1a-1, 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  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 taxing county),  9 (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, and except that the retailer's discount is not allowed for taxes paid on aviation fuel that are subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 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 taxing county), the first paragraph  of 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.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 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, 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 county retailers' occupation tax fund or the Local Government Aviation Trust Fund, as appropriate.Except as otherwise provided in this paragraph, the Department shall forthwith pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected hereunder for deposit into the Home Rule County Retailers' Occupation Tax Fund.  Taxes and penalties collected on aviation fuel sold on or after December 1, 2019, 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 Section 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 named counties, the counties 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 county 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) 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, and not including any amounts that are transferred to the STAR Bonds Revenue Fund, less 1.5% of the remainder, which the Department shall transfer 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 Section.  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 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 $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.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 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 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 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 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 1, 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 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.This Section shall be known and may be cited as the Home Rule County  Service Occupation Tax Law.  (Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19.)