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.

 

(Source:  Amended at 49 Ill. Reg. 3244, effective February 26, 2025)

 

Section 380.105  Registration and Returns

 

a)         A serviceman's registration under the Service Occupation Tax Act [35 ILCS 115] or the Retailers' Occupation Tax Act [35 ILCS 120] is sufficient for the purposes of Section 5.01(c) of the Local Mass Transit District Act.  No special registration for a Metro East Mass Transit District Service Occupation Tax is required.

 

b)         Every taxpayer must file a return each month for each district to which the taxpayer owes Metro East Mass Transit District Service Occupation Tax.  However, the information required for the Metro East Mass Transit District Service Occupation Tax may be furnished on the taxpayer's Service Occupation Tax return form in the additional space that is provided on that form for reporting Metro East Mass Transit District Service Occupation Tax information.

 

c)         Aviation fuel returns shall be filed in accordance with Section 9 of the Service 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 3610/5.01(c)]

 

(Source:  Amended at 49 Ill. Reg. 3244, effective February 26, 2025)

 

Section 380.110  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. 6299, effective April 11, 1991)

 

Section 380.115  Jurisdictional Questions

 

If the Service Occupation Tax on a transaction is being remitted to the Department by the serviceman, the serviceman shall also pay Metro East Mass Transit district Service Occupation Tax to the Department on the same transaction if such serviceman's place of business is located in the district.  This is true whether the serviceman bought the property in Illinois or outside Illinois.

 

(Source:  Amended at 15 Ill. Reg. 6299, effective April 11, 1991)

 

Section 380.120  Incorporation of Service Occupation Tax Regulations by Reference

 

To avoid needless repetition, the substance and provisions of all Service Occupation Tax Regulations (86 Ill. Adm. Code 140), except Subpart A as it pertains to rate, are incorporated herein by reference and made a part hereof.

 

(Source:  Amended at 15 Ill. Reg. 6299, effective April 11, 1991)

 

Section 380.125  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 5.01(c) of the Local Mass Transit District Act as under the Service Occupation Tax Act.

 

Section 380.130  Effective Date

 

When a given Metro East Mass Transit District Service Occupation Tax goes into effect, it applies to sales of service made in the course of the serviceman's engaging in the business of selling services within the taxing district on or after the effective date of the ordinance imposing such tax.  For this purpose, the date of the sale of service is deemed to be the date of the delivery, to the user, of the tangible personal property which the serviceman retransfers as an incident to service.