98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB0477

 

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

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-11-1.6

    Amends the Illinois Municipal Code. Makes a technical change in a Section concerning a non-home rule municipal retailers' occupation tax imposed in certain municipalities with a population of more than 20,000 but less than 25,000.


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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 8-11-1.6 as follows:
 
6    (65 ILCS 5/8-11-1.6)
7    Sec. 8-11-1.6. Non-home rule municipal retailers
8occupation tax; municipalities between 20,000 and and 25,000.
9The corporate authorities of a non-home rule municipality with
10a population of more than 20,000 but less than 25,000 that has,
11prior to January 1, 1987, established a Redevelopment Project
12Area that has been certified as a State Sales Tax Boundary and
13has issued bonds or otherwise incurred indebtedness to pay for
14costs in excess of $5,000,000, which is secured in part by a
15tax increment allocation fund, in accordance with the
16provisions of Division 11-74.4 of this Code may, by passage of
17an ordinance, impose a tax upon all persons engaged in the
18business of selling tangible personal property, other than on
19an item of tangible personal property that is titled and
20registered by an agency of this State's Government, at retail
21in the municipality. This tax may not be imposed on the sales
22of food for human consumption that is to be consumed off the
23premises where it is sold (other than alcoholic beverages, soft

 

 

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1drinks, and food that has been prepared for immediate
2consumption) and prescription and nonprescription medicines,
3drugs, medical appliances and insulin, urine testing
4materials, syringes, and needles used by diabetics. If imposed,
5the tax shall only be imposed in .25% increments of the gross
6receipts from such sales made in the course of business. Any
7tax imposed by a municipality under this Sec. and all civil
8penalties that may be assessed as an incident thereof shall be
9collected and enforced by the State Department of Revenue. An
10ordinance imposing a tax hereunder or effecting a change in the
11rate thereof shall be adopted and a certified copy thereof
12filed with the Department on or before the first day of
13October, whereupon the Department shall proceed to administer
14and enforce this Section as of the first day of January next
15following such adoption and filing. The certificate of
16registration that is issued by the Department to a retailer
17under the Retailers' Occupation Tax Act shall permit the
18retailer to engage in a business that is taxable under any
19ordinance or resolution enacted under this Section without
20registering separately with the Department under the ordinance
21or resolution or under this Section. The Department shall have
22full power to administer and enforce this Section, to collect
23all taxes and penalties due hereunder, to dispose of taxes and
24penalties so collected in the manner hereinafter provided, and
25to determine all rights to credit memoranda, arising on account
26of the erroneous payment of tax or penalty hereunder. In the

 

 

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1administration of, and compliance with this Section, the
2Department and persons who are subject to this Section shall
3have the same rights, remedies, privileges, immunities,
4powers, and duties, and be subject to the same conditions,
5restrictions, limitations, penalties, and definitions of
6terms, and employ the same modes of procedure, as are
7prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
8through 2-65 (in respect to all provisions therein other than
9the State rate of tax), 2c, 3 (except as to the disposition of
10taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
115g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and
1213 of the Retailers' Occupation Tax Act and Section 3-7 of the
13Uniform Penalty and Interest Act as fully as if those
14provisions were set forth herein.
15    A tax may not be imposed by a municipality under this
16Section unless the municipality also imposes a tax at the same
17rate under Section 8-11-1.7 of this Act.
18    Persons subject to any tax imposed under the authority
19granted in this Section, may reimburse themselves for their
20seller's tax liability hereunder by separately stating the tax
21as an additional charge, which charge may be stated in
22combination, in a single amount, with State tax which sellers
23are required to collect under the Use Tax Act, pursuant to such
24bracket schedules as the Department may prescribe.
25    Whenever the Department determines that a refund should be
26made under this Section to a claimant, instead of issuing a

 

 

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1credit memorandum, the Department shall notify the State
2Comptroller, who shall cause the order to be drawn for the
3amount specified, and to the person named in the notification
4from the Department. The refund shall be paid by the State
5Treasurer out of the Non-Home Rule Municipal Retailers'
6Occupation Tax Fund, which is hereby created.
7    The Department shall forthwith pay over to the State
8Treasurer, ex officio, as trustee, all taxes and penalties
9collected hereunder.
10    As soon as possible after the first day of each month,
11beginning January 1, 2011, upon certification of the Department
12of Revenue, the Comptroller shall order transferred, and the
13Treasurer shall transfer, to the STAR Bonds Revenue Fund the
14local sales tax increment, as defined in the Innovation
15Development and Economy Act, collected under this Section
16during the second preceding calendar month for sales within a
17STAR bond district.
18    After the monthly transfer to the STAR Bonds Revenue Fund,
19on or before the 25th day of each calendar month, the
20Department shall prepare and certify to the Comptroller the
21disbursement of stated sums of money to named municipalities,
22the municipalities to be those from which retailers have paid
23taxes or penalties hereunder to the Department during the
24second preceding calendar month. The amount to be paid to each
25municipality shall be the amount (not including credit
26memoranda) collected hereunder during the second preceding

 

 

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

 

 

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1municipality to impose a tax upon the privilege of engaging in
2any business which under the constitution of the United States
3may not be made the subject of taxation by this State.
4    When certifying the amount of a monthly disbursement to a
5municipality under this Section, the Department shall increase
6or decrease the amount by an amount necessary to offset any
7misallocation of previous disbursements. The offset amount
8shall be the amount erroneously disbursed within the previous 6
9months from the time a misallocation is discovered.
10    As used in this Section, "municipal" and "municipality"
11means a city, village, or incorporated town, including an
12incorporated town that has superseded a civil township.
13(Source: P.A. 96-939, eff. 6-24-10.)