Illinois Compiled Statutes
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65 ILCS 5/8-11-1.6
(65 ILCS 5/8-11-1.6)
Non-home rule municipal retailers' occupation tax;
municipalities between 20,000 and 25,000.
authorities of a non-home rule municipality with a population of more than
20,000 but less than 25,000 that has, prior to January 1, 1987, established a
Redevelopment Project Area that has been certified as a State Sales Tax
Boundary and has issued bonds or otherwise incurred indebtedness to pay for
costs in excess of $5,000,000, which is secured in part by a tax increment
allocation fund, in accordance with the provisions of Division 11-74.4 of this
Code may, by passage of an ordinance, impose a tax upon all persons engaged in
the business of selling tangible personal property, other than on an item of
tangible personal property that is titled and registered by an agency of this
State's Government, at retail in the municipality. This tax may not be
imposed on tangible personal property taxed at the 1% rate under the Retailers' Occupation Tax Act. Beginning December 1, 2019, this tax is not imposed on sales of aviation fuel unless the tax revenue is expended for airport-related purposes. If a municipality does not have an airport-related purpose to which it dedicates aviation fuel tax revenue, then aviation fuel is excluded from the tax. Each municipality must comply with the certification requirements for airport-related purposes under Section 2-22 of the Retailers' Occupation Tax Act. For purposes of this Section, "airport-related purposes" has the meaning ascribed in Section 6z-20.2 of the State Finance Act. This exclusion for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the municipality.
If imposed, the tax shall
only be imposed in .25% increments of the gross receipts from such sales made
in the course of business. Any tax imposed by a municipality under 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. An ordinance
imposing a tax hereunder or effecting a change in the rate
thereof shall be adopted and a certified copy thereof filed with the Department
on or before the first day of October, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of January next
following such adoption and filing. The certificate of registration that is
issued by the Department to a retailer under the Retailers' Occupation Tax Act
shall permit the retailer to engage in a business that is taxable under any
ordinance or resolution enacted under this Section without registering
separately with the Department under the 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 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all
provisions therein other than the State rate of tax), 2c, 3 (except as to the
disposition of taxes and penalties collected, and except that the retailer's discount is not allowed for taxes paid on aviation fuel that are subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform Penalty and
Interest Act as fully as if those provisions were set forth herein.
A tax may not be imposed by a municipality under this Section unless the
municipality also imposes a tax at the same rate under Section 8-11-1.7 of this
Persons subject to any tax imposed under the authority granted in this
Section may reimburse themselves for their seller's tax liability hereunder by
separately stating the tax as an additional charge, which charge may be stated
in combination, in a single amount, with State tax which sellers are required
to collect under the 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 a 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 the notification from the
Department. The refund shall be paid by the State Treasurer out of the
Non-Home Rule Municipal Retailers' Occupation Tax Fund, which is hereby
created or the Local Government Aviation Trust Fund, as appropriate.
Except as otherwise provided in this paragraph, the Department shall forthwith pay over to the State Treasurer, ex officio,
as trustee, all taxes and penalties collected hereunder for deposit into the Non-Home Rule Municipal Retailers' Occupation Tax Fund. Taxes and penalties collected on aviation fuel sold on or after December 1, 2019, shall be immediately paid over by the Department to the State Treasurer, ex officio, as trustee, for deposit into the Local Government Aviation Trust Fund. The Department shall only pay moneys into the Local Government Aviation Trust Fund under this Section for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the municipality.
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 retailers 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 and not including taxes and penalties collected on aviation fuel sold on or after December 1, 2019) collected hereunder during the second preceding
calendar month by the Department plus an amount the Department determines is
necessary to offset any amounts that were erroneously paid to a different
taxing body, and not including an amount equal to the amount of refunds made
during the second preceding calendar month by the Department on behalf of the
municipality, and not including any amount that the Department determines is
necessary to offset any amounts that were payable to a different taxing body
but were erroneously paid to the 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
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 the certification.
For the purpose of determining the local governmental unit whose tax is
applicable, a retail sale by a producer of coal or other mineral mined in
Illinois is a sale at retail at the place where the coal or other mineral
mined in Illinois is extracted from the earth. This paragraph does not apply
to coal or other mineral when it is delivered or shipped by the seller to the
purchaser at a point outside Illinois so that the sale is exempt under the
federal Constitution as a sale in interstate or foreign commerce.
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
When certifying the amount of a monthly disbursement to a municipality under
this Section, the Department shall increase or decrease the amount by an
amount necessary to offset any misallocation of previous disbursements. The
offset amount shall be the amount erroneously disbursed within the previous 6
months from the time a misallocation is discovered.
As used in this Section, "municipal" and "municipality" means a city,
village, or incorporated town, including an incorporated town that has
superseded a civil township.
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19.)