SB2278 Summary

• County boards may impose a special retailers' occupation tax on tangible personal property sales in increments of 0.25% for public safety, public facilities, mental health, substance abuse, or transportation purposes, subject to voter approval by referendum.

• Tax revenue must be used exclusively for the designated purpose and cannot be imposed on items taxed at the 1% rate; beginning January 1, 2021, aviation fuel is excluded from the tax if federal revenue use requirements apply to the county.

• Ballot propositions must include specific language describing the tax rate and impact (e.g., amount per $100 of retail purchases), with option for counties to include sunset provisions limiting collection to a specified number of years.

• Counties imposing taxes for mental health or substance abuse purposes must establish a 7-member mental health board to administer the funds in the same manner as a community mental health board under the Community Mental Health Act.

• The Illinois Department of Revenue collects and enforces the tax, with monthly distributions to counties after deducting 1.5% for tax compliance and administration, and counties may discontinue or lower the tax by ordinance without requiring a new referendum.