Ill. Admin. Code tit. 86, § 396.101 - Nature of the Metro-East Park and Recreation District Service 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 Act to impose a service occupation tax upon all persons engaged, in the District, 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. [70 ILCS 1605/30(b) ] This tax shall be imposed only at the rate of one-tenth of one percent (0.1%).

2) This tax may not be imposed on tangible personal property taxed at the 1% rate under the Service Occupation Tax Act [35 ILCS 115]. [70 ILCS 1605/30(b) ] 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 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 District. [70 ILCS 1605/30(b) ] "Aviation fuel" means jet fuel and aviation gasoline. [35 ILCS 115/9 ]

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 1605/30(b) ]

b) Passing on the Tax

The legal incidence of the Metro-East Park and Recreation 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 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], in accordance with such bracket schedules as the Department has prescribed. [70 ILCS 1605/30(b) ]

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 Metro-East Park and Recreation 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 the Metro-East Park and Recreation District Service Occupation Tax.

Notes

Ill. Admin. Code tit. 86, § 396.101

Amended at 49 Ill. Reg. 3256, effective 2/26/2025