Nature of the Metro East Mass Transit District Service Occupation Tax

Section 380 Section 380.101  Nature of the Metro East Mass Transit District Service Occupation Tax a)         Authority to Impose Tax 1)         The Board of Trustees of a Metro East Mass Transit District is authorized to impose a service occupation tax upon all persons engaged in the business of making sales of service, who, as an incident to making those sales of service, transfer tangible personal property within the District, either in the form of tangible personal property or in the form of real estate.  The tax rate shall be ¼%, or ¾% as authorized under 70 ILCS 3610/5.01(d-5) , of the selling price of tangible personal property so transferred within the district. 2)         However, the rate of tax imposed in these Counties under this Section on sales of aviation fuel on or after December 1, 2019 , shall be 0.25% in Madison County 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). 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 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(c)] "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)(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 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(c)] b)         Passing on the Tax The legal incidence of the Metro East Mass Transit District 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 such bracket schedules as the Department has prescribed . [70 ILCS 3610/5.01(c)] (See 86 Ill. Adm. Code 150.Table A). c)         Exclusion from "Selling Prices" Any amount added by a serviceman to the selling price of tangible personal property as an incident to service because of a Metro East Mass Transit District Service Occupation Tax, the Service Occupation Tax , the Service Use Tax, 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 such Metro East Mass Transit District Service Occupation Tax.