101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4135

 

Introduced 1/22/2020, by Rep. Daniel Didech

 

SYNOPSIS AS INTRODUCED:
 
55 ILCS 5/5-1006.8
75 ILCS 16/35-45 new

    Creates the Library District Cannabis Retailers' Occupation Tax Law in the Public Library District Act of 1991. Provides that, on and after January 1, 2021, the corporate authorities of a library district may, by ordinance, impose a 1% tax upon all persons engaged in the business of selling cannabis, other than cannabis purchased under the Compassionate Use of Medical Cannabis Program Act, at retail in the library district on the gross receipts from these sales made in the course of that business. Amends the County Cannabis Retailers' Occupation Tax Law of the Counties Code. Reduces the tax rate the corporate authorities of a county may impose by 1% within a library district if the library district imposes a Library District Cannabis Retailers' Occupation Tax. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4135LRB101 14786 AWJ 63752 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Counties Code is amended by changing Section
55-1006.8 as follows:
 
6    (55 ILCS 5/5-1006.8)
7    Sec. 5-1006.8. County Cannabis Retailers' Occupation Tax
8Law.
9    (a) This Section may be referred to as the County Cannabis
10Retailers' Occupation Tax Law. On and after January 1, 2020,
11the corporate authorities of any county may, by ordinance,
12impose a tax upon all persons engaged in the business of
13selling cannabis, other than cannabis purchased under the
14Compassionate Use of Medical Cannabis Pilot Program Act, at
15retail in the county on the gross receipts from these sales
16made in the course of that business. If imposed, the tax shall
17be imposed only in 0.25% increments. The tax rate may not
18exceed: (i) 3.75% of the gross receipts of sales made in
19unincorporated areas of the county; and (ii) 3% of the gross
20receipts of sales made in a municipality located in the county;
21(iii) 2.75% of the gross receipts of sales made in
22unincorporated areas of the county where a 1% tax is imposed by
23a library district pursuant to the Library District Cannabis

 

 

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1Retailers' Occupation Tax Law; and (iv) 2% of the gross
2receipts of sales made in a municipality located in the county
3where a 1% tax is imposed by a library district pursuant to the
4Library District Cannabis Retailers' Occupation Tax Law. The
5tax imposed under this Section and all civil penalties that may
6be assessed as an incident of the tax shall be collected and
7enforced by the Department of Revenue. The Department of
8Revenue shall have full power to administer and enforce this
9Section; to collect all taxes and penalties due hereunder; to
10dispose of taxes and penalties so collected in the manner
11hereinafter provided; and to determine all rights to credit
12memoranda arising on account of the erroneous payment of tax or
13penalty under this Section. In the administration of and
14compliance with this Section, the Department of Revenue and
15persons who are subject to this Section shall have the same
16rights, remedies, privileges, immunities, powers and duties,
17and be subject to the same conditions, restrictions,
18limitations, penalties, and definitions of terms, and employ
19the same modes of procedure, as are described in Sections 1,
201a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect
21to all provisions therein other than the State rate of tax),
222c, 3 (except as to the disposition of taxes and penalties
23collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
245l, 6, 6a, 6bb, 6c, 6d, 8, 8, 9, 10, 11, 12, and 13 of the
25Retailers' Occupation Tax Act and Section 3-7 of the Uniform
26Penalty and Interest Act as fully as if those provisions were

 

 

HB4135- 3 -LRB101 14786 AWJ 63752 b

1set forth in this Section.
2    (b) Persons subject to any tax imposed under the authority
3granted in this Section may reimburse themselves for their
4seller's tax liability hereunder by separately stating that tax
5as an additional charge, which charge may be stated in
6combination, in a single amount, with any State tax that
7sellers are required to collect.
8    (c) Whenever the Department of Revenue determines that a
9refund should be made under this Section to a claimant instead
10of issuing a credit memorandum, the Department of Revenue shall
11notify the State Comptroller, who shall cause the order to be
12drawn for the amount specified and to the person named in the
13notification from the Department of Revenue.
14    (d) The Department of Revenue shall immediately pay over to
15the State Treasurer, ex officio, as trustee, all taxes and
16penalties collected hereunder for deposit into the Local
17Cannabis Consumer Excise Tax Trust Fund.
18    (e) On or before the 25th day of each calendar month, the
19Department of Revenue shall prepare and certify to the
20Comptroller the amount of money to be disbursed from the Local
21Cannabis Consumer Excise Tax Trust Fund to counties from which
22retailers have paid taxes or penalties under this Section
23during the second preceding calendar month. The amount to be
24paid to each county shall be the amount (not including credit
25memoranda) collected under this Section from sales made in the
26county during the second preceding calendar month, plus an

 

 

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1amount the Department of Revenue determines is necessary to
2offset any amounts that were erroneously paid to a different
3taxing body, and not including an amount equal to the amount of
4refunds made during the second preceding calendar month by the
5Department on behalf of such county, and not including any
6amount that the Department determines is necessary to offset
7any amounts that were payable to a different taxing body but
8were erroneously paid to the county, less 1.5% of the
9remainder, which the Department shall transfer into the Tax
10Compliance and Administration Fund. The Department, at the time
11of each monthly disbursement to the counties, shall prepare and
12certify the State Comptroller the amount to be transferred into
13the Tax Compliance and Administration Fund under this Section.
14Within 10 days after receipt by the Comptroller of the
15disbursement certification to the counties and the Tax
16Compliance and Administration Fund provided for in this Section
17to be given to the Comptroller by the Department, the
18Comptroller shall cause the orders to be drawn for the
19respective amounts in accordance with the directions contained
20in the certification.
21    (f) An ordinance or resolution imposing or discontinuing a
22tax under this Section or effecting a change in the rate
23thereof shall be adopted and a certified copy thereof filed
24with the Department on or before the first day of June,
25whereupon the Department shall proceed to administer and
26enforce this Section as of the first day of September next

 

 

HB4135- 5 -LRB101 14786 AWJ 63752 b

1following the adoption and filing.
2(Source: P.A. 101-27, eff. 6-25-19; 101-363, eff. 8-9-19.)
 
3    Section 10. The Public Library District Act of 1991 is
4amended by adding Section 35-45 as follows:
 
5    (75 ILCS 16/35-45 new)
6    Sec. 35-45. Library District Cannabis Retailers'
7Occupation Tax Law.
8    (a) This Section may be referred to as the Library District
9Cannabis Retailers' Occupation Tax Law. On and after January 1,
102021, the corporate authorities of a library district may, by
11ordinance, impose a tax upon all persons engaged in the
12business of selling cannabis, other than cannabis purchased
13under the Compassionate Use of Medical Cannabis Program Act, at
14retail in the library district on the gross receipts from these
15sales made in the course of that business. If imposed, the tax
16imposed shall be 1% of the gross receipts of sales made in the
17library district. The tax imposed under this Section and all
18civil penalties that may be assessed as an incident of the tax
19shall be collected and enforced by the Department of Revenue.
20The Department of Revenue shall have full power to administer
21and enforce this Section; to collect all taxes and penalties
22due hereunder; to dispose of taxes and penalties so collected
23in the manner hereinafter provided; and to determine all rights
24to credit memoranda arising on account of the erroneous payment

 

 

HB4135- 6 -LRB101 14786 AWJ 63752 b

1of tax or penalty under this Section. In the administration of
2and compliance with this Section, the Department of Revenue and
3persons who are subject to this Section shall have the same
4rights, remedies, privileges, immunities, powers and duties,
5and be subject to the same conditions, restrictions,
6limitations, penalties, and definitions of terms, and employ
7the same modes of procedure, as are described in Sections 1,
81a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect
9to all provisions therein other than the State rate of tax),
102c, 3 (except as to the disposition of taxes and penalties
11collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
125l, 6, 6a, 6bb, 6c, 6d, 8, 8, 9, 10, 11, 12, and 13 of the
13Retailers' Occupation Tax Act and Section 3-7 of the Uniform
14Penalty and Interest Act as fully as if those provisions were
15set forth in this Section.
16    (b) Persons subject to any tax imposed under the authority
17granted in this Section may reimburse themselves for their
18seller's tax liability hereunder by separately stating that tax
19as an additional charge, which charge may be stated in
20combination, in a single amount, with any State tax that
21sellers are required to collect.
22    (c) Whenever the Department of Revenue determines that a
23refund should be made under this Section to a claimant instead
24of issuing a credit memorandum, the Department of Revenue shall
25notify the State Comptroller, who shall cause the order to be
26drawn for the amount specified and to the person named in the

 

 

HB4135- 7 -LRB101 14786 AWJ 63752 b

1notification from the Department of Revenue.
2    (d) The Department of Revenue shall immediately pay over to
3the State Treasurer, ex officio, as trustee, all taxes and
4penalties collected hereunder for deposit into the Local
5Cannabis Consumer Excise Tax Trust Fund.
6    (e) On or before the 25th day of each calendar month, the
7Department of Revenue shall prepare and certify to the
8Comptroller the amount of money to be disbursed from the Local
9Cannabis Consumer Excise Tax Trust Fund to library districts
10from which retailers have paid taxes or penalties under this
11Section during the second preceding calendar month. The amount
12to be paid to each library district shall be the amount (not
13including credit memoranda) collected under this Section from
14sales made in the library district during the second preceding
15calendar month, plus an amount the Department of Revenue
16determines is necessary to offset any amounts that were
17erroneously paid to a different taxing body, and not including
18an amount equal to the amount of refunds made during the second
19preceding calendar month by the Department on behalf of such
20library district, and not including any amount that the
21Department determines is necessary to offset any amounts that
22were payable to a different taxing body but were erroneously
23paid to the library district, less 1.5% of the remainder, which
24the Department shall transfer into the Tax Compliance and
25Administration Fund. The Department, at the time of each
26monthly disbursement to the library districts, shall prepare

 

 

HB4135- 8 -LRB101 14786 AWJ 63752 b

1and certify the State Comptroller the amount to be transferred
2into the Tax Compliance and Administration Fund under this
3Section. Within 10 days after receipt by the Comptroller of the
4disbursement certification to the counties and the Tax
5Compliance and Administration Fund provided for in this Section
6to be given to the Comptroller by the Department, the
7Comptroller shall cause the orders to be drawn for the
8respective amounts in accordance with the directions contained
9in the certification.
10    (f) An ordinance or resolution imposing or discontinuing a
11tax under this Section or effecting a change in the rate
12thereof shall be adopted and a certified copy thereof filed
13with the Department on or before the first day of September,
14whereupon the Department shall proceed to administer and
15enforce this Section as of the first day of January next
16following the adoption and filing.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.