98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB0474

 

Introduced 1/25/2013, by Rep. Michael J. Madigan

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-11-1.3  from Ch. 24, par. 8-11-1.3

    Amends the Non-Home Rule Municipal Retailers' Occupation Tax Act in the Illinois Municipal Code. Makes a technical change in a Section authorizing the imposition of the tax.


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A BILL FOR

 

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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 Illinois Municipal Code is amended by
5changing Section 8-11-1.3 as follows:
 
6    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
7    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
8Occupation Tax Act. The The corporate authorities of a non-home
9rule municipality may impose a tax upon all persons engaged in
10the business of selling tangible personal property, other than
11on an item of tangible personal property which is titled and
12registered by an agency of this State's Government, at retail
13in the municipality for expenditure on public infrastructure or
14for property tax relief or both as defined in Section 8-11-1.2
15if approved by referendum as provided in Section 8-11-1.1, of
16the gross receipts from such sales made in the course of such
17business. If the tax is approved by referendum on or after July
1814, 2010 (the effective date of Public Act 96-1057), the
19corporate authorities of a non-home rule municipality may,
20until December 31, 2020, use the proceeds of the tax for
21expenditure on municipal operations, in addition to or in lieu
22of any expenditure on public infrastructure or for property tax
23relief. The tax imposed may not be more than 1% and may be

 

 

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1imposed only in 1/4% increments. The tax may not be imposed on
2the sale of food for human consumption that is to be consumed
3off the premises where it is sold (other than alcoholic
4beverages, soft drinks, and food that has been prepared for
5immediate consumption) and prescription and nonprescription
6medicines, drugs, medical appliances, and insulin, urine
7testing materials, syringes, and needles used by diabetics. The
8tax imposed by a municipality pursuant to this Section and all
9civil penalties that may be assessed as an incident thereof
10shall be collected and enforced by the State Department of
11Revenue. The certificate of registration which is issued by the
12Department to a retailer under the Retailers' Occupation Tax
13Act shall permit such retailer to engage in a business which is
14taxable under any ordinance or resolution enacted pursuant to
15this Section without registering separately with the
16Department under such ordinance or resolution or under this
17Section. The Department shall have full power to administer and
18enforce this Section; to collect all taxes and penalties due
19hereunder; to dispose of taxes and penalties so collected in
20the manner hereinafter provided, and to determine all rights to
21credit memoranda, arising on account of the erroneous payment
22of tax or penalty hereunder. In the administration of, and
23compliance with, this Section, the Department and persons who
24are subject to this Section shall have the same rights,
25remedies, privileges, immunities, powers and duties, and be
26subject to the same conditions, restrictions, limitations,

 

 

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1penalties and definitions of terms, and employ the same modes
2of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
31e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
4therein other than the State rate of tax), 2c, 3 (except as to
5the disposition of taxes and penalties collected), 4, 5, 5a,
65b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8,
79, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
8Section 3-7 of the Uniform Penalty and Interest Act as fully as
9if those provisions were set forth herein.
10    No municipality may impose a tax under this Section unless
11the municipality also imposes a tax at the same rate under
12Section 8-11-1.4 of this Code.
13    Persons subject to any tax imposed pursuant to the
14authority granted in this Section may reimburse themselves for
15their seller's tax liability hereunder by separately stating
16such tax as an additional charge, which charge may be stated in
17combination, in a single amount, with State tax which sellers
18are required to collect under the Use Tax Act, pursuant to such
19bracket schedules as the Department may prescribe.
20    Whenever the Department determines that a refund should be
21made under this Section to a claimant instead of issuing a
22credit memorandum, the Department shall notify the State
23Comptroller, who shall cause the order to be drawn for the
24amount specified, and to the person named, in such notification
25from the Department. Such refund shall be paid by the State
26Treasurer out of the non-home rule municipal retailers'

 

 

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1occupation tax fund.
2    The Department shall forthwith pay over to the State
3Treasurer, ex officio, as trustee, all taxes and penalties
4collected hereunder.
5    As soon as possible after the first day of each month,
6beginning January 1, 2011, upon certification of the Department
7of Revenue, the Comptroller shall order transferred, and the
8Treasurer shall transfer, to the STAR Bonds Revenue Fund the
9local sales tax increment, as defined in the Innovation
10Development and Economy Act, collected under this Section
11during the second preceding calendar month for sales within a
12STAR bond district.
13    After the monthly transfer to the STAR Bonds Revenue Fund,
14on or before the 25th day of each calendar month, the
15Department shall prepare and certify to the Comptroller the
16disbursement of stated sums of money to named municipalities,
17the municipalities to be those from which retailers have paid
18taxes or penalties hereunder to the Department during the
19second preceding calendar month. The amount to be paid to each
20municipality shall be the amount (not including credit
21memoranda) collected hereunder during the second preceding
22calendar month by the Department plus an amount the Department
23determines is necessary to offset any amounts which were
24erroneously paid to a different taxing body, and not including
25an amount equal to the amount of refunds made during the second
26preceding calendar month by the Department on behalf of such

 

 

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1municipality, and not including any amount which the Department
2determines is necessary to offset any amounts which were
3payable to a different taxing body but were erroneously paid to
4the municipality, and not including any amounts that are
5transferred to the STAR Bonds Revenue Fund. Within 10 days
6after receipt, by the Comptroller, of the disbursement
7certification to the municipalities, provided for in this
8Section to be given to the Comptroller by the Department, the
9Comptroller shall cause the orders to be drawn for the
10respective amounts in accordance with the directions contained
11in such certification.
12    For the purpose of determining the local governmental unit
13whose tax is applicable, a retail sale, by a producer of coal
14or other mineral mined in Illinois, is a sale at retail at the
15place where the coal or other mineral mined in Illinois is
16extracted from the earth. This paragraph does not apply to coal
17or other mineral when it is delivered or shipped by the seller
18to the purchaser at a point outside Illinois so that the sale
19is exempt under the Federal Constitution as a sale in
20interstate or foreign commerce.
21    Nothing in this Section shall be construed to authorize a
22municipality to impose a tax upon the privilege of engaging in
23any business which under the constitution of the United States
24may not be made the subject of taxation by this State.
25    When certifying the amount of a monthly disbursement to a
26municipality under this Section, the Department shall increase

 

 

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1or decrease such amount by an amount necessary to offset any
2misallocation of previous disbursements. The offset amount
3shall be the amount erroneously disbursed within the previous 6
4months from the time a misallocation is discovered.
5    The Department of Revenue shall implement this amendatory
6Act of the 91st General Assembly so as to collect the tax on
7and after January 1, 2002.
8    As used in this Section, "municipal" and "municipality"
9means a city, village or incorporated town, including an
10incorporated town which has superseded a civil township.
11    This Section shall be known and may be cited as the
12"Non-Home Rule Municipal Retailers' Occupation Tax Act".
13(Source: P.A. 96-939, eff. 6-24-10; 96-1057, eff. 7-14-10;
1497-333, eff. 8-12-11; 97-837, eff. 7-20-12.)