Nature of the Regional Transportation Authority Retailers' Occupation Tax

Section 320 Section 320.101  Nature of the Regional Transportation Authority Retailers' Occupation Tax a)         Authority to Impose Tax The Board of Directors of the Regional Transportation Authority is authorized to impose a Regional Transportation Retailers' Occupation Tax upon all persons engaged in the business of selling tangible personal property at retail within the metropolitan region as defined in Section 1.03 of the Regional Transportation Authority Act.  [70 ILCS 3615/4.03(e)] 1) In Cook County, the tax rate shall be 1.25% of the gross receipts from sales of food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, candy, and food that has been prepared for immediate consumption) and tangible personal property taxed at the 1% rate under the Retailers' Occupation Tax Act [35 ILCS 120] , and 1% of the gross receipts from other taxable sales made in the course of that business. [70 ILCS 3615/4.03(e)]  For guidance on the types of tangible personal property taxed at the 1% rate, see 86 Ill. Adm. Code 130.310 and 130.311. 2) In DuPage, Kane, Lake, McHenry, and Will counties, the tax rate shall be 0.75% of the gross receipts from all taxable sales made in the course of that business.  The rate of tax imposed in DuPage, Kane, Lake, McHenry, and Will counties under this Section on sales of aviation fuel on or after December 1, 2019 shall, however, be 0.25% unless the Regional Transportation Authority in DuPage, Kane, Lake, McHenry, and Will counties has an "airport-related purpose" and the additional 0.50% of the 0.75% tax on aviation fuel is expended for airport-related purposes.  If there is no airport-related purpose to which aviation fuel tax revenue is dedicated, then aviation fuel is excluded from the additional 0.50% of the 0.75% tax. 3) The Board and DuPage, Kane, Lake, McHenry, and Will counties must comply with the certification requirements for airport-related purposes under Section 2-22 of the Retailers' Occupation Tax Act [35 ILCS 120] . [70 ILCS 3615/4.03(e)]  The certification requirements under this subsection (a)(3) apply to the non-grandfathered 0.50% of the 0.75% rate in effect in these counties.  In order for the Board to receive its allocated 0.25% of the non-grandfathered 0.50%, it must certify that it has an "airport-related purpose".  Likewise, for any of the named counties to receive its allocated 0.25% of the non-grandfathered 0.50%, it must separately certify that it also has an "airport-related purpose".  For allocation details, see 70 ILCS 3615/4.03(n). 4) "Aviation fuel" means jet fuel and aviation gasoline. [35 ILCS 120/3] "Airport-related purposes" has the meaning ascribed in Section 6z-20.2 of the State Finance Act [30 ILCS 105] .  This exclusion for aviation fuel under subsection (a)(2) 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 Authority. 5) 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. [70 ILCS 3615/4.03(e)] b)         Passing on the Tax The legal incidence of the Regional Transportation Authority Retailers' Occupation Tax is on the seller.  Nevertheless, the General Assembly has authorized persons subject to this tax to 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 sellers are required to collect under the Use Tax Act [35 ILCS 105], under any bracket schedules the Department has prescribed . [70 ILCS 3615/4.03(e)] (See 86 Ill. Adm. Code 150.Table A). c)         Exclusion from "Gross Receipts" Any amount added to the selling price of tangible personal property by the seller because of the Regional Transportation Authority Retailers' Occupation Tax, the Retailers' Occupation Tax, the Use Tax, or any other local occupation tax administered by the Department, and collected from the purchaser, shall not be regarded as a part of the seller's gross receipts that are subject to the Regional Transportation Authority Retailers' Occupation Tax.