(A) Imposition of Business District taxes.
(1) Retailers’ occupation tax. A retailers’ occupation tax is hereby imposed upon all persons engaged, in the Business District, in the business of selling tangible personal property, other than an item of tangible personal property titled or registered with an agency of the state, at retail within the Business District at a rate equal to 1.0% of the gross receipts from the sales made in the course of the business.
(2) Service occupation tax. A Business District service occupation tax is hereby imposed upon all persons engaged, in the Business District as amended by Ordinance 2005-18, in the business of making sales of service, who, as an incident to making those sales of service, transfer tangible personal property within the Business District, either in the form of tangible personal property or in the form of real estate as an incident to a sale of service, at a rate equal to 1.0% of the selling price of tangible personal property so transferred within the Business District.
(3) Exclusions from tax. The Business District taxes imposed pursuant to this section may not be imposed on prescription and nonprescription medicines, drugs, medical appliances, modifications to a motor vehicle for the purpose of rendering it usable by a disabled person, and insulin, urine testing materials, syringes and needles used by diabetics, for human use.
(B) The proceeds of the Business District taxes shall be used solely for the payment of certain development or redevelopment project costs incurred in connection with the implementation or construction of the Business District Plan.
(C) The Business District taxes imposed under this section and all civil penalties that may be assessed as an incident thereof shall be collected by the State Department of Revenue (the “Department”) in accordance with Section 6 of the Business District Act, being ILCS Ch. 65, Act 5, § 11-74.3, as enacted by House Bill 826.
(Ord. 2005-04, passed 2-7-2005; Ord. 2005-18, passed 8-1-2005)