Metro-East Park and Recreation District Tax Q&A
What is the Metro-East Park and Recreation District?
The Metro-East Park and Recreation District’s primary duty is the development, operation, and maintenance of a public system of interconnecting trails and parks throughout the counties comprising the District. Counties that are eligible for inclusion in the District are Clinton, Jersey, Macoupin, Madison, Monroe, and St. Clair. Currently, Madison County and St. Clair County are the only counties that impose this tax.
The Metro-East Park and Recreation District
- supplements but does not substitute for the powers and responsibilities of the other parks and recreation systems within the Metro-East District.
- has the power to contract with other parks and recreation systems as well as with other public and private entities.
What is the Metro-East Park and Recreation District Tax?
Metro-East Park and Recreation District Tax is imposed by the District on all persons engaged in the business of selling tangible personal property at retail within the district’s jurisdiction. Once an eligible county has received voter approval to become part of the District and adopts the ordinance, the Metro-East Park and Recreation District Tax becomes effective. For effective dates, see “What is the deadline for filing an ordinance?”. The Illinois Department of Revenue (IDOR) is responsible for administering Metro-East Park and Recreation District Tax.
Note: When a district establishes a Metro-East Park and Recreation District Retailers’ Occupation Tax it must also impose a Metro-East Park and Recreation District Service Occupation Tax.
Are there kinds of sales that are not subject to this tax and that will not generate additional revenue?
Yes, Metro-East Park and Recreation District Tax does not apply to
- items that must be titled or registered with an agency of Illinois state government, (reported on Form ST-556, Sales Tax Transaction Return or Form ST-556-LSE, Transaction Return for Leases), and
- sales of qualifying food, drugs, and medical appliances (reported on Line 5a of Form ST-1 and Form ST-2). See 86 Ill. Admin. Code 130.310 for additional information.
Do any restrictions exist on how the collections from this tax must be used?
Yes. The Metro-East District will
- distribute 50% of the amounts collected from each county back to that respective county for park and recreation purposes. Of that amount, not less than 50% must be distributed annually in the form of grants to park districts and municipal park and recreation departments within the county.
- deposit 50% of the amounts collected from each county into the Metro-East Park and Recreation District Fund.
Is voter approval required before implementation?
Yes, the county must receive voter approval to become a part of the Metro-East Park and Recreation District.
What rate must be imposed?
Metro-East Park and Recreation District Tax must be imposed at 1/10 percent.
What action is required after voter approval?
The county must
- adopt the ordinance to impose the tax,
- file certified election results with the Local Tax Allocation Division (LTAD), and
- file a certified copy of the ordinance that imposes the tax with IDOR.
What is the deadline for filing the ordinance?
If the local government has filed a certified copy of the ordinance with LTAD on or before
- April 1, the tax rate will take effect July 1 of the same year or
- October 1, the tax rate will take effect January 1 of the following year.
When will the district receive its first tax collection?
For taxes imposed effective January 1, the first disbursement will be made to the local government during the following April. For taxes imposed effective July 1, the first disbursement will be made to the local government during the following October.
The ordinance must be sent to the address below.
ILLINOIS DEPARTMENT OF REVENUE
101 WEST JEFFERSON ST
SPRINGFIELD IL 62702
Is there other general information I should know?
- Metro East Park and Recreation District Tax will be disbursed separate from other taxes authorized for disbursement by IDOR. You will receive your disbursement in the same fashion you have chosen for your county sales tax disbursement.
- Taxpayers are allowed to take a discount for timely filing and payment of these taxes. Any allowable discount that is taken is reflected in the local government distributions that are made.
- An administrative fee is retained by the state treasurer to cover the costs we incur administering the taxes.