093_HB2630

 
                                     LRB093 07509 MKM 07682 b

 1        AN ACT in relation to taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  Counties  Code  is  amended  by  adding
 5    Section 5-1014.3 as follows:

 6        (55 ILCS 5/5-1014.3 new)
 7        Sec.  5-1014.3.  Agreements to share or rebate occupation
 8    taxes. On and after July 1, 2003, a county  board  shall  not
 9    enter into or renew any agreement with a retailer to share or
10    rebate  any  portion of retailers' occupation taxes generated
11    by retail sales of tangible personal property if: (1) the tax
12    on those retail sales,  notwithstanding  the  agreement,  has
13    previously been paid to another unit of local government; and
14    (2)  the  retailer  continues  to maintain, within that other
15    unit of local government, a retail location or warehouse from
16    which  the  tangible  personal  property  is   delivered   to
17    purchasers.  Any  unit  of local government denied retailers'
18    occupation tax revenue because of an agreement that  violates
19    this  Section may file an action in circuit court against the
20    county, against the retailer, or  both.  Any  unit  of  local
21    government  that  prevails  in  the  circuit  court action is
22    entitled to damages in the amount of the tax revenue  it  was
23    denied  as  a  result  of  the agreement, statutory interest,
24    costs, reasonable attorney's fees, and an amount equal to 50%
25    of the tax.

26        Section 10. The Illinois Municipal  Code  is  amended  by
27    adding Section 8-11-21 as follows:

28        (65 ILCS 5/8-11-21 new)
29        Sec.  8-11-21.  Agreements  to share or rebate occupation
 
                            -2-      LRB093 07509 MKM 07682 b
 1    taxes. On and after July 1, 2003, the  corporate  authorities
 2    of a municipality shall not enter into or renew any agreement
 3    with  a retailer to share or rebate any portion of retailers'
 4    occupation  taxes  generated  by  retail  sales  of  tangible
 5    personal property if: (1) the  tax  on  those  retail  sales,
 6    notwithstanding  the  agreement,  has previously been paid to
 7    another unit  of  local  government;  and  (2)  the  retailer
 8    continues  to  maintain,  within  that  other  unit  of local
 9    government, a retail location or  warehouse  from  which  the
10    tangible  personal  property  is delivered to purchasers. Any
11    unit of local government  denied  retailers'  occupation  tax
12    revenue  because  of  an agreement that violates this Section
13    may file an action in circuit court against the municipality,
14    against the retailer, or both. Any unit of  local  government
15    that  prevails  in  the  circuit  court action is entitled to
16    damages in the amount of the tax revenue it was denied  as  a
17    result   of   the   agreement,   statutory  interest,  costs,
18    reasonable attorney's fees, and an amount equal to 50% of the
19    tax.

20        Section 99.  Effective date.  This Act takes effect  upon
21    becoming law.