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.

 

(Source:  Amended at 49 Ill. Reg. 3225, effective February 26, 2025)

 

Section 320.105  Registration and Returns

 

a)         Separate Registration not Required

A retailer's registration under the Retailers' Occupation Tax Act [35 ILCS 120] is sufficient for the purposes of Section 4.03(e) of the Regional Transportation Authority Act.  No special registration for the Regional Transportation Authority Retailers' Occupation Tax is required.

 

b)         Requirements as to Returns

 

1)         Every retailer must file a return each month for each county that has a Regional Transportation Authority Retailers' Occupation Tax in effect that month if the retailer is engaged in the business of selling tangible personal property at retail within that county:  Provided that if the retailer is permitted to file its Retailers' Occupation Tax returns quarterly, the taxpayer's Regional Transportation Authority Retailers' Occupation Tax returns shall also be filed quarterly; and provided that if the retailer is permitted to file its Retailers' Occupation Tax returns annually, the taxpayer's Regional Transportation Authority Retailers' Occupation Tax returns shall also be filed annually.  However, the information required for the Regional Transportation Authority Retailers' Occupation Tax may be furnished on the taxpayer's Retailers' Occupation Tax return form in the additional space that is provided on that form for reporting Regional Transportation Authority Retailers' Occupation Tax information.

 

2)         If the retailer files its Retailers' Occupation Tax returns on the gross receipts basis, the taxpayer must also report Regional Transportation Authority Retailers' Occupation Tax information in its returns on the gross receipts basis.  If the retailer files its Retailers' Occupation Tax return on the gross sales basis, the taxpayer must also report Regional Transportation Authority Retailers' Occupation Tax information in its returns on the gross sales basis.

 

3)         Aviation fuel tax returns shall be filed in accordance with Section 3 of the Retailers' Occupation Tax Act and 86 Ill. Adm. Code 130.541, except that the retailer's discount is not allowed for taxes paid on aviation fuel that are subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133.  [70 ILCS 3615/4.03(e)]

 

(Source:  Amended at 49 Ill. Reg. 3225, effective February 26, 2025)

 

Section 320.110  Claims to Recover Erroneously Paid Tax

 

Claims for Multiple Taxes. If a claimant files a claim for refund on a transaction which was subject to State and local taxes administered by the Department, the claim need not be filed separately for each type of tax. A single claim for the total of all applicable taxes shall suffice. The claim shall be audited, heard, or otherwise processed as a single claim whenever possible. A single credit memorandum shall be issued which may be used by the claimant or his authorized assignee to pay State or local tax liability.

 

(Source:  Amended at 15 Ill. Reg. 6316, effective April 11, 1991)

 

Section 320.115  Jurisdictional Questions

 

The substance and provisions of 86 Ill. Adm. Code 270.115 of the Home Rule Municipal Retailers' Occupation Tax Regulations which are not incompatible with the Regional Transportation Authority Retailers’ Occupation Tax Law, shall apply to this Part. References to a "home rule municipality" or "municipality" in Section 270.115 mean "Metropolitan Region" for purposes of this Section.  References to the Home Rule Municipal Retailers’ Occupation Tax in Section 270.115 mean Regional Transportation Authority Retailers’ Occupation Tax for purposes of this Section. When used in this Part, "Metropolitan Region" means all territory included within the Regional Transportation Authority as provided in the Regional Transportation Authority Act, and such territory as may be annexed to the Regional Transportation Authority.

 

(Source:  Amended at 47 Ill. Reg. 2749, effective February 7, 2023)

 

Section 320.120  Incorporation of the Retailers' Occupation Tax Regulations by Reference

 

To avoid needless repetition, the substance and provisions of all Retailers' Occupation Tax Regulations (86 Ill. Adm. Code 130), are incorporated herein by reference and made a part hereof.

 

(Source:  Amended at 15 Ill. Reg. 6316, effective April 11, 1991)

 

Section 320.125  Penalties, Interest and Procedures

 

All penalties (both civil and criminal), provisions concerning interest and procedures (such as the making of assessments, the venue and mode of conducting hearings, subpoenas, matters pertaining to judicial review and other procedural subjects), together with statutes of limitation, are the same under Section 4.03(e) of the Regional Transportation Authority Act as under the Retailers' Occupation Tax Act (Ill. Rev. Stat. 1979, ch. 120, pars. 440 et seq.).

 

Section 320.130  Effective Date

 

a)         The Regional Transportation Authority Retailers' Occupation Tax is effective November 1, 1979.  It applies to sales made in the course of the seller's engaging in the business of selling tangible personal property at retail within the region on or after the effective date of the ordinance.  For this purpose, the date of the sale is deemed to be the date of the delivery of the property.  If delivery occurs after the effective date, in a transaction in which receipts were received before the effective date and tax was paid on such receipts when received by the seller in accordance with Section 130.430 of the Retailers' Occupation Tax Regulations, no Regional Transportation Authority Retailers' Occupation Tax will be due because of the delivery of the property occurring after the effective date.

 

b)         Furthermore, in the case of sales of building materials to real estate improvement construction contractors for use in performing construction contracts for third persons, if such property is delivered to the contractor after the effective date of a rate increase but will be used in performing a binding construction contract which was entered into before the effective date of the increase and under which the contractor is legally unable to shift the burden of the tax rate increase to his customer, the applicable tax rate will be the rate which was in effect before the effective date of the rate increase.  Before a supplier may deliver materials to a construction contractor after the effective date of a tax rate increase at the rate which was in effect prior thereto, the purchasing contractor must give such supplier a written, signed certification stating that specifically described materials are being purchased for use in performing a binding contract which was entered into before the effective date of the rate increase (specifying such date) and under which the contractor is legally unable to shift the burden of the tax rate increase to his customer, identifying the construction contract in question by its date and by naming the contractor's construction work involved, and by giving the location of the job site where the construction contract is being performed or is to be performed.

 

c)         The same rule applies when determining the effective date of an increase in the rate of a Municipal Retailers' Occupation Tax.