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65 ILCS 5/8-11-1.4
(65 ILCS 5/8-11-1.4)
(from Ch. 24, par. 8-11-1.4)
Non-Home Rule Municipal Service Occupation Tax Act.
corporate authorities of a non-home rule municipality may impose a
tax upon all persons engaged, in such municipality, in the business of
making sales of service for expenditure on
public infrastructure or for property tax relief or both as defined in
Section 8-11-1.2 if approved by
referendum as provided in Section 8-11-1.1, of the selling price of
all tangible personal property transferred by such servicemen either in
the form of tangible personal property or in the form of real estate as
an incident to a sale of service.
If the tax is approved by referendum on or after July 14, 2010 (the effective date of Public Act 96-1057), the corporate authorities of a non-home rule municipality may, until December 31, 2020, use the proceeds of the tax for expenditure on municipal operations, in addition to or in lieu of any expenditure on public infrastructure or for property tax relief. The tax imposed may not be more than 1% and may be imposed only in
1/4% increments. The tax may not be imposed on the sale of food for human
consumption that is
to be consumed off the premises where it is sold (other than alcoholic
beverages, soft drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines, drugs, medical
appliances, and insulin, urine testing materials, syringes, and needles used by
The tax imposed by a municipality
pursuant to this Section and all civil penalties that may be assessed as
an incident thereof shall be collected and enforced by the State
Department of Revenue. The certificate of registration which is issued
by the Department to a retailer under the Retailers' Occupation Tax
Act or under the Service Occupation Tax Act shall permit
such registrant to engage in a business which is taxable under any
ordinance or resolution enacted pursuant to this Section without
registering separately with the Department under such ordinance or
resolution or under this Section. The Department shall have full power
to administer and enforce this Section; to collect all taxes and
penalties due hereunder; to dispose of taxes and penalties so collected
in the manner hereinafter provided, and to determine all rights to
credit memoranda arising on account of the erroneous payment of tax or
penalty hereunder. In the administration of, and compliance with, this
Section the Department and persons who are subject to this Section
shall have the same rights, remedies, privileges, immunities, powers and
duties, and be subject to the same conditions, restrictions, limitations,
penalties and definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to
all provisions therein other than the State rate of tax), 4 (except that
the reference to the State shall be to the taxing municipality), 5, 7, 8
(except that the jurisdiction to which the tax shall be a debt to the
extent indicated in that Section 8 shall be the taxing municipality), 9
(except as to the disposition of taxes and penalties collected, and except
that the returned merchandise credit for this municipal tax may not be
taken against any State tax), 10, 11, 12 (except the reference therein to
Section 2b of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State shall mean the taxing municipality), the first
paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service Occupation
Tax Act and Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
No municipality may impose a tax under this Section unless the municipality
also imposes a tax at the same rate under Section 8-11-1.3 of this Code.
Persons subject to any tax imposed pursuant to the authority granted
in this Section may reimburse themselves for their serviceman's tax
liability hereunder by separately stating such tax as an additional
charge, which charge may be stated in combination, in a single amount,
with State tax which servicemen are authorized to collect under the
Service Use Tax Act, pursuant to such bracket schedules as the
Department may prescribe.
Whenever the Department determines that a refund should be made under
this Section to a claimant instead of issuing credit memorandum, the
Department shall notify the State Comptroller, who shall cause the
order to be drawn for the amount specified, and to the person named,
in such notification from the Department. Such refund shall be paid by
the State Treasurer out of the municipal retailers' occupation tax fund.
The Department shall forthwith pay over to the State Treasurer,
ex officio, as trustee, all taxes and penalties collected hereunder.
As soon as possible after the first day of each month, beginning January 1, 2011, upon certification of the Department of Revenue, the Comptroller shall order transferred, and the Treasurer shall transfer, to the STAR Bonds Revenue Fund the local sales tax increment, as defined in the Innovation Development and Economy Act, collected under this Section during the second preceding calendar month for sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund, on
or before the 25th day of each calendar month, the Department shall
prepare and certify to the Comptroller the disbursement of stated sums
of money to named municipalities, the municipalities to be those from
which suppliers and servicemen have paid taxes or penalties hereunder to
the Department during the second preceding calendar month. The amount
to be paid to each municipality shall be the amount (not including credit
memoranda) collected hereunder during the second preceding calendar
month by the Department, and not including an amount equal to the amount
of refunds made during the second preceding calendar month by the
Department on behalf of such municipality, and not including any amounts that are transferred to the STAR Bonds Revenue Fund, less 1.5% of the remainder, which the Department shall transfer into the Tax Compliance and Administration Fund. The Department, at the time of each monthly disbursement to the municipalities, shall prepare and certify to the State Comptroller the amount to be transferred into the Tax Compliance and Administration Fund under this Section. Within 10 days
after receipt, by the Comptroller, of the disbursement certification to
the municipalities, the General Revenue Fund, and the Tax Compliance and Administration Fund provided for in this
Section to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the respective
amounts in accordance with the directions contained in such
The Department of Revenue shall implement this amendatory Act of the 91st
General Assembly so as to collect the tax on and after January 1, 2002.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in any
business which under the constitution of the United States may not be
made the subject of taxation by this State.
As used in this Section, "municipal" or "municipality" means or refers to
a city, village or incorporated town, including an incorporated town which
has superseded a civil township.
This Section shall be known and may be cited as the "Non-Home Rule Municipal
Service Occupation Tax Act".
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)