Nature of the Metro East Mass Transit District Retailers' Occupation Tax

Section 370 Section 370.101  Nature of the Metro East Mass Transit District Retailers' Occupation Tax a)         Authority to Impose Tax The Board of Trustees of a Metro East Mass Transit District is authorized to impose a retailers' occupation tax upon all persons engaged in the business of selling tangible personal property at retail in the district at a rate of ¼% , or ¾% as authorized under 70 ILCS 3610/5.01(d-5) , of the gross receipts from the sales made in the course of such business within the district. 1)         However, the rate of tax imposed under this Section on sales of aviation fuel on or after December 1, 2019 in Madison County shall be 0.25% unless the Metro-East Mass Transit District in Madison County has an "airport-related purpose" and any additional amount authorized under 70 ILCS 3610/5.01(d-5) 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 any additional amount authorized under 70 ILCS 3610/5.01(d-5). 2) The rate in St. Clair County shall be 0.25% unless the Metro-East Mass Transit District in St. Clair County has an "airport-related purpose" and the additional 0.50% of the 0.75% tax on aviation fuel imposed in that County 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 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 3610/5.01(b)] "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)(1) 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 District. 4) 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 3610/5.01(b)] b)         Passing on the Tax The legal incidence of a Metro East Mass Transit District 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] , in accordance with such bracket schedules as the Department has prescribed . [70 ILCS 3610/5.01(b)] (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 a Metro East Mass Transit District 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 such Metro East Mass Transit District Retailers' Occupation Tax.