Bill
SB 3204
Authorizes Kendall County Forest Preserve District to levy up to 1% local sales/service tax, via referendum, to fund forest preserve uses and projects.
Date Introduced: February 2, 2026
Sponsor: Sen. Linda Holmes (co-sponsor)
Purpose
- Authorizes the Kendall County Forest Preserve District to impose a local retailers’ and service occupation tax (sales tax) to fund general forest preserve district purposes within Kendall County. The tax would apply to gross receipts from sales of tangible personal property (and leases) at retail, with specified exclusions and governance requirements.
Key Provisions
1) Tax Authority and Rate
- The Kendall County Forest Preserve District Board may impose a tax on all persons engaged in selling (including leasing) tangible personal property at retail in Kendall County.
- The tax is a combined special district tax for forest preserve purposes (retailers’ occupation tax) and service occupation tax.
- Rate: tax may be imposed in increments of 0.25% and may not exceed 1% in total.
- Exclusions:
- Tax does not apply to tangible personal property taxed at the 1% rate under the Retailers’ Occupation Tax Act.
- Tax does not apply to sales of aviation fuel while revenue-use requirements (federal rules) are binding on the board.
- Leases: Tax applies to leases of tangible personal property as part of the same framework as sales (for leases entered into or renewed on or after the effective date of the ordinance).
2) Referendum and Election
- A proposition to impose the tax must be submitted to the legal voters of Kendall County and approved by a majority (referendum requirement).
- The form of the ballot is specified, including the rate and whether sunset provisions apply.
- Sunset provisions may be included, terminating the tax after a defined period unless renewed by board action.
3) Use and Transparency of Revenues
- Funds raised may be used for general forest preserve district purposes, including:
- Education and outdoor recreation
- Maintenance and operations
- Public safety at forest preserves
- Trails
- Acquiring/restoring land
- Other lawful forest preserve programs determined by the board
- If a tax is imposed for specific operational needs or projects, the board may include project names in the ballot proposition (e.g., regional trails, facilities, acquisitions).
- The district must publish and make publicly available its operational, capital, or master plan prior to approving the tax.
4) Administration and Collection
- Revenues and penalties under this subsection are collected and enforced by the Illinois Department of Revenue (IDOR).
- The retail and service taxes collected by Kendall County retailers are administered through IDOR, with the same general rights and procedures as other state tax provisions within the Retailers’ Occupation Tax Act and Service Occupation Tax Act (including credit memoranda and refunds).
- The Department of Revenue may issue refunds via the State Comptroller and State Treasurer, drawing on funds from a dedicated Special Forest Preserve District Retailers’ and Service Occupation Tax Fund.
5) Fund and Transfers
- The tax proceeds are deposited into the Special Forest Preserve District Retailers’ and Service Occupation Tax Fund in the State Treasury.
- Monthly transfers: a portion of the local tax revenue is transferred to the STAR Bonds Revenue Fund as part of the Innovation Development and Economy Act framework, with detailed timing and offset provisions.
- The Department of Revenue must certify monthly disbursements to the State Comptroller, who then issues payment orders.
6) Administrative Alignment and Miscellaneous
- The ordinance imposing or changing the tax must be filed with IDOR, including referendum outcomes and timing for effectiveness (July 1 or January 1 following filing, depending on filing date).
- The act provides for misallocation offsets and monthly reconciliation of disbursements.
Effective Date
- The act takes effect immediately upon becoming law.
Potential Impact
Notes
- The bill is specific to Kendall County and does not automatically apply to other downstate forest preserve districts.
- Aviation fuel sales are exempt while federal revenue-use requirements are binding.
Compiled from official sources — confirm details with the bill’s official record.
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