1. a) Authority to Impose Tax

   1. 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. 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. 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)]

2. 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).

3. 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)