98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB0475

 

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

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-11-1.4  from Ch. 24, par. 8-11-1.4

    Amends the Illinois Municipal Code. Makes a technical change in a Section concerning a non-home rule municipal service occupation 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 8-11-1.4 as follows:
 
6    (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)
7    Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
8Tax Act. The The corporate authorities of a non-home rule
9municipality may impose a tax upon all persons engaged, in such
10municipality, in the business of making sales of service for
11expenditure on public infrastructure or for property tax relief
12or both as defined in Section 8-11-1.2 if approved by
13referendum as provided in Section 8-11-1.1, of the selling
14price of all tangible personal property transferred by such
15servicemen either in the form of tangible personal property or
16in the form of real estate as an incident to a sale of service.
17If the tax is approved by referendum on or after July 14, 2010
18(the effective date of Public Act 96-1057), the corporate
19authorities of a non-home rule municipality may, until December
2031, 2020, use the proceeds of the tax for expenditure on
21municipal operations, in addition to or in lieu of any
22expenditure 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 or under the Service Occupation Tax Act shall permit such
14registrant to engage in a business which is taxable under any
15ordinance or resolution enacted pursuant to this Section
16without registering separately with the Department under such
17ordinance or resolution or under this Section. The Department
18shall have full power to administer and enforce this Section;
19to collect all taxes and penalties due hereunder; to dispose of
20taxes and penalties so collected in the manner hereinafter
21provided, and to determine all rights to credit memoranda
22arising on account of the erroneous payment of tax or penalty
23hereunder. In the administration of, and compliance with, this
24Section the Department and persons who are subject to this
25Section shall have the same rights, remedies, privileges,
26immunities, powers and duties, and be subject to the same

 

 

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1conditions, restrictions, limitations, penalties and
2definitions of terms, and employ the same modes of procedure,
3as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
4respect to all provisions therein other than the State rate of
5tax), 4 (except that the reference to the State shall be to the
6taxing municipality), 5, 7, 8 (except that the jurisdiction to
7which the tax shall be a debt to the extent indicated in that
8Section 8 shall be the taxing municipality), 9 (except as to
9the disposition of taxes and penalties collected, and except
10that the returned merchandise credit for this municipal tax may
11not be taken against any State tax), 10, 11, 12 (except the
12reference therein to Section 2b of the Retailers' Occupation
13Tax Act), 13 (except that any reference to the State shall mean
14the taxing municipality), the first paragraph of Section 15,
1516, 17, 18, 19 and 20 of the Service Occupation Tax Act and
16Section 3-7 of the Uniform Penalty and Interest Act, as fully
17as if those provisions were set forth herein.
18    No municipality may impose a tax under this Section unless
19the municipality also imposes a tax at the same rate under
20Section 8-11-1.3 of this Code.
21    Persons subject to any tax imposed pursuant to the
22authority granted in this Section may reimburse themselves for
23their serviceman's tax liability hereunder by separately
24stating such tax as an additional charge, which charge may be
25stated in combination, in a single amount, with State tax which
26servicemen are authorized to collect under the Service Use Tax

 

 

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1Act, pursuant to such bracket schedules as the Department may
2prescribe.
3    Whenever the Department determines that a refund should be
4made under this Section to a claimant instead of issuing credit
5memorandum, the Department shall notify the State Comptroller,
6who shall cause the order to be drawn for the amount specified,
7and to the person named, in such notification from the
8Department. Such refund shall be paid by the State Treasurer
9out of the municipal retailers' occupation tax fund.
10    The Department shall forthwith pay over to the State
11Treasurer, ex officio, as trustee, all taxes and penalties
12collected hereunder.
13    As soon as possible after the first day of each month,
14beginning January 1, 2011, upon certification of the Department
15of Revenue, the Comptroller shall order transferred, and the
16Treasurer shall transfer, to the STAR Bonds Revenue Fund the
17local sales tax increment, as defined in the Innovation
18Development and Economy Act, collected under this Section
19during the second preceding calendar month for sales within a
20STAR bond district.
21    After the monthly transfer to the STAR Bonds Revenue Fund,
22on or before the 25th day of each calendar month, the
23Department shall prepare and certify to the Comptroller the
24disbursement of stated sums of money to named municipalities,
25the municipalities to be those from which suppliers and
26servicemen have paid taxes or penalties hereunder to the

 

 

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1Department during the second preceding calendar month. The
2amount to be paid to each municipality shall be the amount (not
3including credit memoranda) collected hereunder during the
4second preceding calendar month by the Department, and not
5including an amount equal to the amount of refunds made during
6the second preceding calendar month by the Department on behalf
7of such municipality, and not including any amounts that are
8transferred to the STAR Bonds Revenue Fund. Within 10 days
9after receipt, by the Comptroller, of the disbursement
10certification to the municipalities and the General Revenue
11Fund, provided for in this Section to be given to the
12Comptroller by the Department, the Comptroller shall cause the
13orders to be drawn for the respective amounts in accordance
14with the directions contained in such certification.
15    The Department of Revenue shall implement this amendatory
16Act of the 91st General Assembly so as to collect the tax on
17and after January 1, 2002.
18    Nothing in this Section shall be construed to authorize a
19municipality to impose a tax upon the privilege of engaging in
20any business which under the constitution of the United States
21may not be made the subject of taxation by this State.
22    As used in this Section, "municipal" or "municipality"
23means or refers to a city, village or incorporated town,
24including an incorporated town which has superseded a civil
25township.
26    This Section shall be known and may be cited as the

 

 

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1"Non-Home Rule Municipal Service Occupation Tax Act".
2(Source: P.A. 96-939, eff. 6-24-10; 96-1057, eff. 7-14-10;
397-333, eff. 8-12-11; 97-837, eff. 7-20-12.)