Illinois Administrative Code › Title 86 - REVENUE › Part 694 - NON-HOME RULE MUNICIPAL SERVICE OCCUPATION TAX › Section 694.101 - Nature of the Non-Home Rule Municipal Service Occupation Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) Authority to
			 Impose Tax
On and after January 1, 2002, the corporate authorities of a
				non-home rule municipality are authorized by the Non-Home Rule Municipal
				Service Occupation Tax Act [65 ILCS 5/8-11 -1.4] to impose the Non-Home Rule
				Municipal Service Occupation Tax on all persons engaged in the business of
				making sales of service in the municipality, if a proposition for the tax has
				been submitted to the electors of that municipality and approved by a majority
				of those voting on the question. If imposed, the tax shall be imposed at a rate
				of not more than, through December 31, 2005, 1/2%, and, beginning on January 1,
				2006, 1%, of the selling price of all tangible personal property transferred by
				the servicemen either in the form of tangible personal property or in the form
				of real estate as an incident to a sale of service for expenditure on public
				infrastructure or property tax relief or both as defined in Section 8-11-1.2 of
				the Illinois Municipal Code. 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 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 the corporate authorities under
				the Non-Home Rule Municipal Service Occupation Tax Act and this Part, and all
				civil penalties that may be assessed as an incident of that Act and this Part,
				may be imposed only in 1/4% increments and shall be collected and enforced by
				the Illinois Department of Revenue (Department).
b) Passing on the Tax
The legal incidence of the Non-Home Rule Municipal Service
				Occupation Tax is on the serviceman. Nevertheless, the General Assembly has
				authorized persons subject to any tax imposed pursuant to the authority granted
				in the Non-Home Rule Municipal Service Occupation Tax Act to reimburse
				themselves for their Non-Home Rule Municipal Service Occupation 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 servicemen are
				required to collect under the Service Use Tax Act [35 ILCS 110 ], pursuant to
				the bracket schedules the Department has prescribed (see 86 Ill. Adm. Code
				150.Table A).
c) Exclusion
			 from "Selling Price"
Any amount added by a serviceman to the selling price of
				tangible personal property as an incident to service because of a Non-Home Rule
				Municipal Service Occupation Tax, or because of the Illinois Service Occupation
				Tax [35 ILCS 115 ], the Illinois Use Tax [35 ILCS 105 ], the Metro East Mass
				Transit District Service Occupation Tax [70
				ILCS 3610/5.01 ], the Regional Transportation
				Authority Service Occupation Tax [70 ILCS
				3615/4.03 ] or the County Water Commission Service
				Occupation Tax [70 ILCS
				3720/4(c) ], shall not be regarded as
				a part of the selling price that is subject to the Non-Home Rule Municipal
				Service Occupation Tax.