Nature of the Metro-East Park and Recreation District Retailers' Occupation Tax

Section 395 Section 395.101  Nature of the Metro-East Park and Recreation District Retailers' Occupation Tax a)         Authority to Impose Tax 1)         The Board of Directors of the Metro-East Park and Recreation District are authorized by the Metro-East Park and Recreation District Act [70 ILCS 1605] to impose a tax upon all persons engaged in the business of selling tangible personal property, other than personal property titled or registered with an agency of this State's government, at retail in the District on the gross receipts from the sales made in the course of business.  This tax shall be imposed only at the rate of one-tenth of one percent (0.1%) . 2) This additional tax may not be imposed on tangible personal property taxed at the 1% rate under the Retailers' Occupation Tax Act [35 ILCS 120].  [70 ILCS 1605/30(a)]  For guidance on the types of tangible personal property taxed at the 1% rate, see 86 Ill. Adm. Code 130.310 and 130.311. 3) Beginning January 1, 2021, this tax is not imposed on sale of aviation fuel 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. [70 ILCS 1605/30(a)] "Aviation fuel" means jet fuel and aviation gasoline. [35 ILCS 120/3] 4) The tax imposed by the Board under this Section and all civil penalties that may be assessed as an incident of the tax shall be collected and enforced by the Department of Revenue. [70 ILCS 1605/30(a)] b)         Passing on the Tax The legal incidence of the Metro-East Park and Recreation 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 tax which sellers are required to collect under the Use Tax Act [35 ILCS 105] , pursuant to such bracket schedules as the Department has prescribed.  [70 ILCS 1605/30(a)]  (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 Metro-East Park and Recreation 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 the Metro-East Park and Recreation District Retailers' Occupation Tax.