Section 691.101  Nature of the Salem Civic Center Service Occupation Tax

 

a)         Authority to Impose Tax

 

1)         Pursuant to the Salem Civic Center Use and Occupation Tax Law [70 ILCS 200/245-12], the Salem Civic Center Authority ("Authority") shall be authorized to impose a service occupation tax upon all persons engaged in the metropolitan area, in the business of making sales of service, who, as an incident to making those sales of service, transfer tangible personal property within the metropolitan area.  [70 ILCS 200/245-12(c)]  If imposed, the rate shall be in one-quarter percent (¼%) increments not to exceed 1%.  [70 ILCS 200/245-12(a)]

 

2)         Beginning January 1, 2021, this tax is not imposed on sales 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 Authority.  [70 ILCS 200/245-12(c)] "Aviation fuel" means jet fuel and aviation gasoline. [35 ILCS 115/9]

 

3)         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 200/245-12(c)]

 

b)         Passing on the Tax

The legal incidence of the Salem Civic Center 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 115], in accordance with such bracket schedules as the Department has prescribed.  [70 ILCS 200/245-12(c)]  (See 86 Ill. Adm. Code 150.Table A).

 

c)         Exclusion from "Selling Price"

Any amount added by a serviceman to the selling price of tangible personal property as an incident to service because of the Salem Civic Center 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 the Salem Civic Center Service Occupation Tax.

 

(Source:  Amended at 49 Ill. Reg. 3299, effective February 26, 2025)

 

Section 691.105  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 subsection (c) of the Salem Civic Center Use and Occupation Tax Law [70 ILCS 200/245-12].  No special registration for the Salem Civic Center Service Occupation Tax is required.

 

b)         The information required for the Salem Civic Center Service Occupation Tax shall be furnished on the taxpayer's Service Occupation Tax return form.

 

(Source:  Amended at 49 Ill. Reg. 3299, effective February 26, 2025)

 

Section 691.110  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 will suffice.  The claim will be audited, heard, or otherwise processed as a single claim whenever possible.  A single credit memorandum will be issued which may be used by the claimant or his authorized assignee to pay State or local tax liability.

 

Section 691.115  Jurisdictional Questions

 

a)         When used in this Part, "metropolitan area" means all territory in the State of Illinois lying within the corporate boundaries of the City of Salem in Marion County.

 

b)         If the Illinois Service Occupation Tax on a transaction is being remitted to the Department by the serviceman, the serviceman shall also pay Salem Civic Center Service Occupation Tax to the Department on the same transaction if such serviceman's place of business is located in the metropolitan area.

 

Section 691.120  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) which are not incompatible with the Salem Civic Center Use and Occupation Tax Law or any special regulations that may be promulgated by the Department thereunder shall apply to the tax imposed pursuant to this Part.

 

Section 691.125  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 the Salem Civic Center Use and Occupation Tax Law as under the Service Occupation Tax Act.

 

Section 691.130  Effective Date

 

An ordinance or resolution imposing or discontinuing or effecting a change in the rate of a Salem Civic Center Service Occupation Tax shall be adopted and a certified copy thereof filed with the Department on or before the first day of April, whereupon the Department shall proceed to administer and enforce the ordinance or resolution as of the first day of July next following such adoption and filing.  For purposes of determining which tax rate applies, 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.