Nature of the Regional Transportation Authority Service Occupation Tax

Section 330 Section 330.101  Nature of the Regional Transportation Authority Service Occupation Tax a)         Authority to Impose Tax 1)         The Board of Directors of the Regional Transportation Authority is authorized to impose a tax upon all persons engaged in the business of making sales of service within the metropolitan region as defined in Section 1.03 of the Regional Transportation Authority Act [70 ILCS 3615/1.03] , who as an incident to making the sales of service, transfer tangible personal property within the metropolitan region, either in the form of tangible personal property or in the form of real estate.  In Cook County, the tax rate shall be: A) 1.25% of the serviceman's cost price of food prepared for immediate consumption and transferred incident to a sale of service subject to the service occupation tax by an entity that is located in the metropolitan region and that is licensed under the Hospital Licensing Act, the Nursing Home Care Act, the Assisted Living and Shared Housing Act, the Specialized Mental Health Rehabilitation Act of 2013, the ID/DD Community Care Act, or the MC/DD Act, or the Child Care Act of 1969, or an entity that holds a permit issued pursuant to the Life Care Facilities Act; B) 1.25% of the selling price 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 Service Occupation Tax Act [35 ILCS 115]. [70 ILCS 3615/4.03(f)] For guidance on the types of tangible personal property taxed at the 1% rate, see 86 Ill. Adm. Code 130.310 and 130.311 ; and C) 1% of the selling price from other taxable sales of tangible personal property transferred.  In DuPage, Kane, Lake, McHenry, and Will counties, the rate shall be 0.75% of the selling price of all tangible personal property transferred.  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 . D) 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(f)]  The certification requirements under this subsection (a)(1)(D) 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). E) "Aviation fuel" means jet fuel and aviation gasoline. [35 ILCS 115/9] "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)(1)(C) 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. 2) 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(f)] b)         Passing on the Tax The legal incidence of the Regional Transportation Authority Service Occupation Tax is on the serviceman.  Nevertheless, the General Assembly has authorized persons subject to this tax to 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 [35 ILCS 110] , pursuant to bracket schedules as the Department has prescribed . [70 ILCS 3615/4.03(f)] (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 the Regional Transportation Authority Service Occupation Tax, the Service Occupation Tax, the Service Use Tax Act , or any other local occupation tax administered by the Department, shall not be regarded as a part of the selling price that is subject to the Regional Transportation Authority Service Occupation Tax.