(65 ILCS 5/8-11-11) (from Ch. 24, par. 8-11-11)
Sec. 8-11-11.
In addition to any other taxes authorized by law, the corporate
authorities of a municipality may impose a tax upon the privilege of
leasing motor vehicles within the municipality to a lessee on a daily
or weekly basis
in an amount not to exceed $2.75 per vehicle per rental period
specified in the lease agreement. The tax may be stated separately in
such lease agreement, invoice or bill.
The ordinance or resolution imposing any such tax shall provide for the
means of its administration, collection and enforcement by the municipality.
As used in this Section, "municipality" means a city, village or
incorporated town, including an incorporated town which has superseded a
civil township, and "motor vehicle" has the meaning ascribed to it in
Section 1-146 of The Illinois Vehicle Code.
(Source: P.A. 84-1479.)
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(65 ILCS 5/8-11-15) (from Ch. 24, par. 8-11-15)
Sec. 8-11-15.
(a) The corporate authorities of a municipality of over
100,000 inhabitants may, upon approval of the electors of the municipality
pursuant to subsection (b), impose a tax of one cent per gallon on motor
fuel sold at retail within such municipality.
A tax imposed pursuant to this Section shall be paid in addition to any
other taxes on such motor fuel.
(b) The corporate authorities of the municipality may by resolution call
for the submission to the electors of the municipality of the question of
whether the municipality shall impose such tax. Such question shall be
certified by the municipal clerk to the election authority in accordance
with Section 28-5 of The Election Code. The
question shall be in substantially the following form:
Shall the city (village or incorporated town) of ....... YES impose a tax of one cent per
gallon on motor fuel sold at NO retail within its boundaries?
If a majority of the electors in the municipality voting upon the
question vote in the affirmative, such tax shall be imposed.
(c) The purchaser of the motor fuel shall be liable for payment of a tax
imposed pursuant to this Section. This Section shall not be construed to
impose a tax on the occupation of persons engaged in the sale of motor fuel.
If a municipality imposes a tax on motor fuel pursuant to this Section,
it shall be the duty of any person engaged in the retail sale of
motor fuel within such municipality to collect such tax from the purchaser
at the same time he collects the purchase price of the motor fuel and to
pay over such tax to the municipality as prescribed by the ordinance of the
municipality imposing such tax.
(d) For purposes of this Section, "motor fuel" shall have the same
meaning as provided in the "Motor Fuel Tax Law".
(Source: P.A. 84-1099 .)
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(65 ILCS 5/8-11-16) (from Ch. 24, par. 8-11-16)
Sec. 8-11-16.
The Department of Revenue shall submit to each
municipality each year a list of those persons within that municipality who
are registered with the Department under the Retailers' Occupation Tax Act.
The list shall indicate the street address of each retail outlet operated
in the municipality by the persons so registered and the name under which
the retailer conducts business, if different from the corporate name. The
municipal clerk shall forward any changes or corrections to the list to the
Department within 6 months. The Department shall update and correct its
records to reflect such changes, or notify the municipality in writing that
the suggested changes are erroneous, within 90 days. The Department shall
also provide monthly updates to each municipality showing additions or
deletions to the list of retail outlets within the municipality. The
Department shall provide a copy of the annual listing herein provided for
contiguous jurisdictions when a municipality so requests. The list
required by this Section shall contain only the names and street addresses
of persons who are registered with the Department and shall not include the
amount of tax paid by such persons. The list required by this Section
shall be provided to each municipality no later than September 1 annually.
When certifying the amount of a monthly disbursement to a municipality
under Section 8-11-1, 8-11-5, 8-11-6 of this Act or Section 6z-18 of "An
Act in relation to State finance", the Department shall increase or
decrease such 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.
The Department of Revenue must upon the request of any municipality
received pursuant to the provisions of this paragraph furnish to such
municipality data setting forth the aggregate amount of retailers'
occupation tax collected on behalf of such municipality from any shopping
center identified in such request and located within such municipality for
each month beginning with the first month following the month within which
such a request is received by the Department, provided that such data may
be provided only with respect to shopping centers (1) which consist of
50 or more persons registered with the Department to pay Retailers'
Occupation Tax, and (2) where the developers or owners thereof or their
predecessors in interest have entered into written agreements with the
municipality to transfer property to or perform services for or on behalf
of such municipality in exchange for payments based solely or in part on
the amount of retailers' occupation tax collected on behalf of the municipality
from persons within such shopping centers. Data given pursuant to this
paragraph shall not identify by amounts the individual sources of such
taxes. A request for data pursuant to this paragraph shall first be
submitted to the Department of Revenue by the Municipal Clerk, City Council
or Village Board of Trustees. The Department of Revenue shall review each
such request to determine whether the requirements of item (2) of the first
sentence of this paragraph have been met and, within 30 days following its
receipt of such a request, shall either certify that the request meets such
requirements, or notify the person submitting the request that the request
does not meet such requirements.
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, and "shopping center" means a group of
retail stores and other business and service establishments in an
integrated building arrangement operated under common ownership or diverse
ownership under unified control involving common parking areas and mutual
easements.
(Source: P.A. 91-51, eff. 6-30-99.)
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(65 ILCS 5/8-11-17) (from Ch. 24, par. 8-11-17)
Sec. 8-11-17.
(Repealed).
(Source: P.A. 92-526, eff. 7-1-02. Repealed internally, eff. 1-1-03.)
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(65 ILCS 5/8-11-18) (from Ch. 24, par. 8-11-18)
Sec. 8-11-18.
(Repealed).
(Source: P.A. 88-597, eff. 8-28-94. Repealed internally, eff. 9-6-97.)
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(65 ILCS 5/8-11-20)
Sec. 8-11-20.
Economic incentive agreements.
The corporate authorities
of a municipality may enter into an economic incentive agreement relating to
the development or
redevelopment of land within the corporate limits of the municipality. Under
this agreement, the municipality may agree to share or rebate a
portion of any retailers' occupation taxes received by the municipality that
were generated by the development or redevelopment over a finite period of
time. Before entering into the agreement authorized by this Section, the
corporate authorities shall make the following findings:
(1) If the property subject to the agreement is vacant:
(A) that the property has remained vacant for at | ||
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(B) that any building located on the property was | ||
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(2) If the property subject to the agreement is currently developed:
(A) that the buildings on the property no longer | ||
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(B) that the buildings on the property have remained | ||
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(3) That the project is expected to create or retain job opportunities
within the municipality;
(4) That the project will serve to further the development of adjacent
areas;
(5) That without the agreement, the project would not be possible;
(6) That the developer meets high standards of creditworthiness and
financial strength as demonstrated by one or more of the following:
(A) corporate debenture ratings of BBB or higher by | ||
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(B) a letter from a financial institution with assets | ||
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(C) specific evidence of equity financing for not | ||
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(7) That the project will strengthen the commercial sector of the
municipality;
(8) That the project will enhance the tax base of the municipality; and
(9) That the agreement is made in the best interest of the municipality.
(Source: P.A. 92-263, eff. 8-7-01.)
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(65 ILCS 5/8-11-21)
Sec. 8-11-21. Agreements to share or rebate occupation taxes.
(a) On and after
June 1, 2004, the corporate authorities of a municipality shall
not enter into any agreement to share or rebate
any
portion of retailers' occupation taxes generated by retail sales of tangible
personal
property if: (1) the tax on those retail sales, absent the agreement,
would have been paid to another unit of local government; and (2) the
retailer maintains, within that other unit of local government, a
retail location from which the tangible personal property is delivered to
purchasers, or a warehouse from which the tangible personal property is
delivered to purchasers. Any unit of local government
denied retailers' occupation tax revenue because of an agreement that violates
this Section may file an action in circuit court against only the municipality.
Any agreement entered into prior to
June 1,
2004 is not affected by this amendatory Act of the 93rd General Assembly.
Any unit of
local government that prevails in the circuit court action is entitled to
damages in
the amount of the tax revenue it was denied as a result of the agreement,
statutory interest, costs, reasonable attorney's fees, and an amount equal to
50% of the
tax.
(b) On and after the effective date of this amendatory Act of the 93rd
General Assembly, a home rule unit shall not enter into any agreement
prohibited
by this Section. This Section is a denial and limitation of home rule powers
and
functions under subsection (g) of Section 6 of Article VII of the Illinois
Constitution.
(c) Any municipality that enters into an agreement to share or rebate
any
portion of retailers' occupation taxes generated by retail sales of tangible
personal
property must complete and submit a report by electronic filing to the Department of Revenue within 30 days after the execution of the agreement. Any municipality that has entered into such an agreement before the effective date of this amendatory Act of the 97th General Assembly that has not been terminated or expired as of the effective date of this amendatory Act of the 97th General Assembly shall submit a report with respect to the agreements within 90 days after the effective date of this amendatory Act of the 97th General Assembly. Any agreement entered into on or after the effective date of this amendatory Act of the 98th General Assembly is not valid until the municipality entering into the agreement complies with the requirements set forth in this subsection. Any municipality that fails to comply with the requirements set forth in this subsection within the 30 days after the execution of the agreement shall be responsible for paying to the Department of Revenue a delinquency penalty of $20 per day for each day the municipality fails to submit a report by electronic filing to the Department of Revenue. A municipality that has previously failed to report an agreement in effect on the effective date of this subsection will begin to accrue a delinquency penalty for each day the agreement remains unreported beginning on the effective date of this subsection. The Department of Revenue may adopt rules to implement and administer these penalties. (d) The report described in this Section shall be made on a form to be supplied by the Department of Revenue and shall contain the following: (1) the names of the municipality and the business | ||
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(2) the location or locations of the business within | ||
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(3) a statement, to be answered in the affirmative or | ||
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(4) the terms of the agreement, including (i) the | ||
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(5) a copy of the agreement to share or rebate any | ||
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An updated report must be filed by the municipality within 30 days after the execution of any amendment made to an agreement. Reports filed with the Department pursuant to this Section shall not constitute tax returns. (e) The Department and the municipality shall redact the sales figures, the amount of sales tax collected, and the amount of sales tax rebated prior to disclosure of information contained in a report required by this Section or the Freedom of Information Act. The information redacted shall be exempt from the provisions of the Freedom of Information Act. (f) All reports, except the copy of the agreement, required to be filed with the Department of Revenue pursuant to this Section shall be posted on the Department's website within 6 months after the effective date of this amendatory Act of the 97th General Assembly. The website shall be updated on a monthly basis to include newly received reports. (Source: P.A. 97-976, eff. 1-1-13; 98-463, eff. 8-16-13; 98-1098, eff. 8-26-14.) |
(65 ILCS 5/8-11-22) Sec. 8-11-22. (Repealed).
(Source: P.A. 101-10, eff. 6-5-19. Repealed by P.A. 101-604, eff. 12-13-19.) |
(65 ILCS 5/8-11-23) Sec. 8-11-23. Municipal Cannabis Retailers' Occupation Tax Law. (a) This Section may be referred to as the Municipal Cannabis Retailers' Occupation Tax Law. The corporate authorities of any municipality may, by ordinance, impose a tax upon all persons engaged in the business of selling cannabis, other than cannabis purchased under the Compassionate Use of Medical Cannabis Program Act, at retail in the municipality on the gross receipts from these sales made in the course of that business. If imposed, the tax may not exceed 3% of the gross receipts from these sales and shall only be imposed in 1/4% increments. The tax imposed under this Section and all civil penalties that may be assessed as an incident of the tax shall be collected and enforced by the Department of Revenue. The Department of Revenue 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 under this Section. 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, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all provisions therein other than the State rate of tax), 2a, 2b, 2c, 2i, 3 (except as to the disposition of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 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. (b) 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 that tax as an additional charge, which charge may be stated in combination, in a single amount, with any State tax that sellers are required to collect. (c) Whenever the Department of Revenue determines that a refund should be made under this Section to a claimant instead of issuing a credit memorandum, the Department of Revenue 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 of Revenue. (d) The Department of Revenue shall immediately pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected hereunder for deposit into the Local Cannabis Retailers' Occupation Tax Trust Fund. (e) On or before the 25th day of each calendar month, the Department of Revenue shall prepare and certify to the Comptroller the amount of money to be disbursed from the Local Cannabis Retailers' Occupation Tax Trust Fund to municipalities from which retailers have paid taxes or penalties under this Section during the second preceding calendar month. The amount to be paid to each municipality shall be the amount (not including credit memoranda) collected under this Section from sales made in the municipality during the second preceding calendar month, plus an amount the Department of Revenue 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 such 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, 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. (f) An ordinance or resolution imposing or discontinuing a tax under this Section or effecting a change in the rate thereof that is adopted on or after June 25, 2019 (the effective date of Public Act 101-27) and for which a certified copy is filed with the Department on or before April 1, 2020 shall be administered and enforced by the Department beginning on July 1, 2020. For ordinances filed with the Department after April 1, 2020, an ordinance or resolution imposing or discontinuing a tax under this Section or effecting a change in the rate thereof shall either (i) be adopted and a certified copy thereof filed with the Department on or before the first day of April, whereupon the Department shall proceed to administer and enforce this Section as of the first day of July next following the adoption and filing; or (ii) 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 the adoption and filing.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.) |
(65 ILCS 5/8-11-24) Sec. 8-11-24. Municipal Grocery Occupation Tax Law. (a) The corporate authorities of any municipality may, by ordinance or resolution that takes effect on or after January 1, 2026, impose a tax upon all persons engaged in the business of selling groceries at retail in the municipality on the gross receipts from those sales made in the course of that business. If imposed, the tax shall be at the rate of 1% of the gross receipts from these sales. The tax imposed by a municipality under this subsection and all civil penalties that may be assessed as an incident of the tax shall be collected and enforced by the Department. 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 subsection without registering separately with the Department under that ordinance or resolution or under this subsection. The Department shall have full power to administer and enforce this subsection; to collect all taxes and penalties due under this subsection; to dispose of taxes and penalties so collected in the manner provided in this Section and under rules adopted by the Department; and to determine all rights to credit memoranda arising on account of the erroneous payment of tax or penalty under this subsection. In the administration of, and compliance with, this subsection, the Department and persons who are subject to this subsection 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, 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), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12 and 13 of the Retailers' Occupation Tax Act and all of the Uniform Penalty and Interest Act, as fully as if those provisions were set forth in this Section. Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their seller's tax liability hereunder by separately stating that 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. (b) If a tax has been imposed under subsection (a), then a service occupation tax must also be imposed at the same rate upon all persons engaged, in the municipality, in the business of making sales of service, who, as an incident to making those sales of service, transfer groceries, as defined in this Section, as an incident to a sale of service. The tax imposed under this subsection and all civil penalties that may be assessed as an incident thereof shall be collected and enforced by the Department. The certificate of registration that is issued by the Department to a retailer under the Retailers' Occupation Tax Act or the Service Occupation Tax Act shall permit the registrant to engage in a business that is taxable under any ordinance or resolution enacted pursuant to this subsection without registering separately with the Department under the ordinance or resolution or under this subsection. The Department shall have full power to administer and enforce this subsection, to collect all taxes and penalties due under this subsection, to dispose of taxes and penalties so collected in the manner provided in this Section and under rules adopted by the Department, and to determine all rights to credit memoranda arising on account of the erroneous payment of a tax or penalty under this subsection. In the administration of and compliance with this subsection, the Department and persons who are subject to this subsection 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 set forth in Sections 2, 2c, 3 through 3-50 (in respect to all provisions contained in those Sections other than the State rate of tax), 4, 5, 7, 8, 9 (except as to the disposition of taxes and penalties collected), 10, 11, 12, 13, 15, 16, 17, 18, 19, and 20 of the Service Occupation Tax Act and all provisions of the Uniform Penalty and Interest Act, as fully as if those provisions were set forth in this Section. Persons subject to any tax imposed under the authority granted in this subsection may reimburse themselves for their serviceman's tax liability by separately stating the tax as an additional charge, which may be stated in combination, in a single amount, with State tax that servicemen are authorized to collect under the Service Use Tax Act, pursuant to any bracketed schedules set forth by the Department. (c) The Department shall immediately pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected under this Section. Those taxes and penalties shall be deposited into the Municipal Grocery Tax Trust Fund, a trust fund created in the State treasury. Except as otherwise provided in this Section, moneys in the Municipal Grocery Tax Trust Fund shall be used to make payments to municipalities and for the payment of refunds under this Section. Moneys deposited into the Municipal Grocery Tax Trust Fund under this Section are not subject to appropriation and shall be used as provided in this Section. All deposits into the Municipal Grocery Tax Trust Fund shall be held in the Municipal Grocery Tax Trust Fund by the State Treasurer, ex officio, as trustee separate and apart from all public moneys or funds of this State. 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 Municipal Grocery Tax Trust Fund. (d) As soon as possible after the first day of each month, upon certification of the Department, the Comptroller shall order transferred, and the Treasurer shall transfer, to the STAR Bonds Revenue Fund the local sales tax increment, if any, as defined in the Innovation Development and Economy Act, collected under this Section. After the monthly transfer to the STAR Bonds Revenue Fund, if any, 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 under this Section 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 under this Section 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 such 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. Within 10 days after receipt by the Comptroller of the disbursement certification to the municipalities 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 amounts in accordance with the directions contained in the certification. (e) 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. (f) Except as otherwise provided in this subsection, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate thereof shall either (i) be adopted and a certified copy thereof filed with the Department on or before the first day of April, whereupon the Department shall proceed to administer and enforce this Section as of the first day of July next following the adoption and filing or (ii) 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 the adoption and filing. (g) 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. (h) As used in this Section, "Department" means the Department of Revenue. For purposes of the tax authorized to be imposed under subsection (a), "groceries" has the same meaning as "food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, candy, and food that has been prepared for immediate consumption)", as further defined in Section 2-10 of the Retailers' Occupation Tax Act. For purposes of the tax authorized to be imposed under subsection (b), "groceries" has the same meaning as "food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, candy, and food that has been prepared for immediate consumption)", as further defined in Section 3-10 of the Service Occupation Tax Act. For purposes of the tax authorized to be imposed under subsection (b), "groceries" also means food prepared for immediate consumption and transferred incident to a sale of service subject to the Service Occupation Tax Act or the Service Use Tax Act by an entity licensed under the Hospital Licensing Act, the Nursing Home Care Act, the Assisted Living and Shared Housing Act, the ID/DD Community Care Act, the MC/DD Act, the Specialized Mental Health Rehabilitation Act of 2013, or the Child Care Act of 1969, or an entity that holds a permit issued pursuant to the Life Care Facilities Act. (i) This Section may be referred to as the Municipal Grocery Occupation Tax Law.
(Source: P.A. 103-781, eff. 8-5-24.) |
(65 ILCS 5/Art. 8 Div. 12 heading) DIVISION 12.
FINANCIALLY DISTRESSED CITY LAW
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(65 ILCS 5/8-12-1) (from Ch. 24, par. 8-12-1)
Sec. 8-12-1.
This Division 12 may be cited as the
Financially Distressed City Law.
(Source: P.A. 86-1211.)
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(65 ILCS 5/8-12-2) (from Ch. 24, par. 8-12-2)
Sec. 8-12-2.
(a) Pursuant to the authority of the General Assembly to provide
for the public health, safety and welfare, the General Assembly hereby
finds and declares that it is the public policy and a public purpose of the
State to offer assistance to a financially distressed city so that it may
provide for the health, safety and welfare of its citizens, pay when due
principal and interest on its debt obligations, meet financial obligations
to its employees, vendors and suppliers, and provide for proper financial
accounting procedures, budgeting and taxing practices, as well as
strengthen the human and economic development of the city.
(b) It is the purpose of this Division to provide a secure financial
basis for the continued operation of a financially distressed city. The
intention of the General Assembly, in enacting this legislation is to
establish sound, efficient and generally accepted accounting, budgeting and
taxing procedures and practices within a financially distressed city, to
provide powers to a financial advisory authority established for a
financially distressed city, and to impose restrictions upon a financially
distressed city in order to assist that city in assuring its financial
integrity while leaving municipal services policies to the city, consistent
with the requirements for satisfying the public policy and purposes herein set
forth.
(c) It also is the purpose of this Division to authorize a city which
has been certified and designated as a financially distressed city under
the procedure set forth in Section 8-12-4, and which has by ordinance
requested that a financial advisory authority be appointed for the city and
that the city receive assistance as provided in this Division, and which
has filed certified copies of that ordinance in the manner provided by
Section 8-12-4, to enter into such agreements as are necessary to receive
assistance as provided in this Division and in applicable provisions of the
Illinois Finance Authority Act.
(Source: P.A. 93-205, eff. 1-1-04.)
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(65 ILCS 5/8-12-3) (from Ch. 24, par. 8-12-3)
Sec. 8-12-3.
As used in this Division:
(1) "Authority" means the "(Name of Financially Distressed City) Financial
Advisory Authority".
(2) "Financially distressed city" means any municipality which is a home
rule unit and which (i) is certified by the Department of Revenue as being
in the highest 5% of all home rule municipalities in terms of the aggregate
of the rate per cent of all taxes levied pursuant to statute or ordinance
upon all taxable property of the municipality and as being in the lowest 5%
of all home rule municipalities in terms of per capita tax yield, and (ii)
is designated by joint resolution of the General Assembly as a financially
distressed city.
(3) "Home rule municipality" means a municipality which is a home
rule unit as provided in Section 6 of Article VII of the Illinois
Constitution.
(4) "Budget" means an annual appropriation ordinance or annual budget
as described in Division 2 of Article 8, as from time to time in effect in
the financially distressed city.
(5) "Chairperson" means the chairperson of the Authority appointed
pursuant to Section 8-12-7.
(6) "Financial Plan" means the financially distressed city's financial plan
as developed pursuant to Section 8-12-15, as from time to time in effect.
(7) "Fiscal year" means the fiscal year of the financially distressed city.
(8) "Obligations" means bonds, notes or other evidence of indebtedness
issued by the Illinois Finance Authority in
connection with
the provision of financial aid to a financially distressed city pursuant to
this Division and applicable provisions of the Illinois
Finance Authority Act.
(Source: P.A. 93-205, eff. 1-1-04.)
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(65 ILCS 5/8-12-4) (from Ch. 24, par. 8-12-4)
Sec. 8-12-4.
In order to receive assistance as provided in this
Division, a home rule municipality shall first, by ordinance passed by its
corporate authorities, request (i) that the Department of Revenue certify
that it is in the highest 5% of all home rule municipalities in terms of
the aggregate of the rate per cent of all taxes levied pursuant to statute
or ordinance upon all taxable property of the municipality and in the
lowest 5% of all home rule municipalities in terms of
per capita tax yield, and (ii) that the General Assembly by joint
resolution designate it as a financially distressed city. A home rule
municipality which is so certified and designated as a financially
distressed city and which desires to receive assistance as provided in this
Division shall, by ordinance passed by its corporate authorities, request
that a financial advisory authority be appointed for the city and that the
city receive assistance as provided in this Division, and shall file a
certified copy of that ordinance with the Governor, with the Clerk of the
House of Representatives and with the Secretary of the Senate. Upon the
filing of the certified copies of that ordinance as required by this
Section this Division and all of its provisions shall then and thereafter
be applicable to the financially distressed city, shall govern and control
its financial accounting, budgeting and taxing procedures and practices,
and, subject to the limitations of subsection (a) of Section 8-12-22, shall
remain in full force and effect with respect thereto until such
time as the financial advisory authority established under Section 8-12-5
is abolished as provided in subsection (c) of Section 8-12-22.
(Source: P.A. 86-1211.)
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(65 ILCS 5/8-12-5) (from Ch. 24, par. 8-12-5)
Sec. 8-12-5.
For each financially distressed city to which this
Division is applicable as provided in Section 8-12-4, there is established
a body both corporate and politic to be known as the "(Name of Financially
Distressed City) Financial Advisory Authority" which, in such name, shall
exercise all authority vested in such Authority by this Division. The
Authority shall constitute an agency of State government, and as such may
receive and expend amounts appropriated by the General Assembly to the
Authority to enable it to exercise and perform its powers and
responsibilities under this Division. The financially distressed city
shall not be liable for any costs or expenses incurred by the Authority in
the conduct of its powers and responsibilities under this Division.
(Source: P.A. 86-1211.)
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(65 ILCS 5/8-12-6) (from Ch. 24, par. 8-12-6)
Sec. 8-12-6.
Purposes and powers.
(a) The purposes of the Authority shall be to provide a secure financial
basis for and to furnish assistance to a financially distressed city to which
this Division is applicable as provided in Section 8-12-4, and to request the
Illinois Finance Authority to issue its Obligations
on behalf of
and thereby provide financial aid to the city in accordance with applicable
provisions of the Illinois Finance Authority Act, so
that the city
can provide basic municipal services within its jurisdictional limits, while
permitting the distressed city to meet its obligations to its creditors and the
holders of its notes and bonds.
(b) Except as expressly limited by this Division, the Authority
shall have all powers necessary to meet its responsibilities and to carry
out its purposes and the purposes of this Division, including, but not
limited to, the following powers:
(1) To provide for its organization and internal | ||
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(2) To make and execute contracts, leases, subleases | ||
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(3) To approve all loans, grants, or other financial | ||
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(4) To appoint officers, agents, and employees of the | ||
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(5) To engage the services of consultants for | ||
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(6) To pay the expenses of its operations.
(7) To determine, in its discretion but consistent | ||
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(c) Any loan repayments received by the Authority from the distressed city
may be deposited by the Authority into a revolving fund under the control of
the Authority. Money in the revolving fund may be used by the Authority to
support activities leading to a restructuring of the distressed city's debt and
may be pledged by the Authority as security for any new debt incurred by the
distressed city with the approval of the Authority.
(d) From any funds appropriated to the Authority for the purpose of making
a loan to a distressed city, the Authority may expend not more than
$250,000 for the expenses of its operations in the fiscal year in which the
appropriation is made.
(Source: P.A. 93-205, eff. 1-1-04.)
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(65 ILCS 5/8-12-7) (from Ch. 24, par. 8-12-7)
Sec. 8-12-7.
The governing body of the Authority shall be a board
consisting of 5 Directors. Directors shall be appointed by the Governor,
with the advice and consent of the Senate. At least 2 Directors must be
residents of the financially distressed city. The Governor shall select
one of the Directors to serve as Chairperson during the term of his or her appointment.
(Source: P.A. 86-1211.)
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(65 ILCS 5/8-12-8) (from Ch. 24, par. 8-12-8)
Sec. 8-12-8.
The initial Directors shall be appointed, as provided in
Section 8-12-7, within 30 days after this Division first becomes applicable
to the financially distressed city as provided in Section 8-12-4. Of the
initial Directors so appointed, 3 shall be appointed to serve for terms
expiring 3 years from the date of their appointment, and 2 shall be
appointed to serve for terms expiring 2 years from the date of their
appointment. Thereafter each Director shall be appointed to hold office for
a term of 3 years and until his or her successor has been appointed as
provided in Section 8-12-7. Directors shall be eligible for reappointment.
Any vacancy which shall arise shall be filled by appointment by the
Governor, with the advice and consent of the Senate, for the unexpired term
and until his or her successor has been appointed as provided in Section
8-12-7. A vacancy shall occur upon resignation, death, conviction of a
felony or removal from office of a Director. A Director may be removed for
incompetency, malfeasance or neglect of duty at the instance of the
Governor. If the Senate is not in session or is
in recess when appointments subject to its confirmation are made, the
Governor shall make temporary appointments which shall be subject to
subsequent Senate approval.
(Source: P.A. 86-1211.)
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(65 ILCS 5/8-12-9) (from Ch. 24, par. 8-12-9)
Sec. 8-12-9.
The Chairperson shall preside at meetings of the
Directors. The Directors may establish such offices and appoint such
officers for the Authority as they may deem appropriate.
(Source: P.A. 86-1211.)
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(65 ILCS 5/8-12-10) (from Ch. 24, par. 8-12-10)
Sec. 8-12-10.
Any State agency or unit of local government, within its
respective function, may render such services to the Authority as the
Authority may request. Upon the Authority's request any such agency
or unit of local government may transfer to the Authority such officers and
employees as the Authority and any such agency or unit of local government
deem necessary to carry out the Authority's functions and duties. Officers
and employees so transferred shall not lose or forfeit their employment status or rights.
(Source: P.A. 86-1211.)
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(65 ILCS 5/8-12-11) (from Ch. 24, par. 8-12-11)
Sec. 8-12-11.
The Directors shall serve without compensation, but each
Director shall be entitled to reimbursement for actual and necessary
expenses incurred in the performance of official duties as a Director.
(Source: P.A. 86-1211.)
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(65 ILCS 5/8-12-12) (from Ch. 24, par. 8-12-12)
Sec. 8-12-12.
(a) The Governor shall call the first
meeting of the Authority. Thereafter, the Directors shall prescribe
the times and places for their meetings and the manner in which regular
and special meetings may be called. The Directors shall comply in all
respects with the Open Meetings Act. The Authority shall be a public body to
which The Freedom of Information Act applies.
(b) A majority of the Directors holding office shall constitute a
quorum for the conduct of business. The affirmative votes of at least
3 Directors shall be necessary for adopting any rule or regulation,
and for any other action required by this Division to be taken by
resolution, directive or ordinance.
(Source: P.A. 86-1211.)
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(65 ILCS 5/8-12-13) (from Ch. 24, par. 8-12-13)
Sec. 8-12-13.
In carrying out the purposes of this Division, and pursuant
to Sections 8-12-14 through 8-12-24, as hereinafter provided, the Authority
shall have the power to approve or to reject the Financial Plans, Budgets
and contracts which are inconsistent with the Financial Plan and Budget of
the financially distressed city; provided, however, that the Authority
shall have no authority to impair any existing contract or obligation of
the city; and provided further, that with respect to any multi-year
employment contract or collective bargaining agreement authorized or
entered into by the city in accordance with applicable statutes and
ordinances, the Authority's power to approve or reject the same shall be
limited to the first year of such contract or agreement as provided in
Section 8-12-17.
(Source: P.A. 86-1211.)
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(65 ILCS 5/8-12-14) (from Ch. 24, par. 8-12-14)
Sec. 8-12-14.
The Budget of the financially distressed city for its
first fiscal year commencing after this Division first becomes applicable
to the financially distressed city as provided in Section 8-12-4, and for
each subsequent fiscal year shall be balanced in accordance with such
accounting system and procedures as may be prescribed by the Authority and
the requirements of State law, with substantial progress toward balancing
the Budget to be achieved during the remaining portion of what is the
financially distressed city's current fiscal year at the time this Division
first becomes applicable to the city as provided in Section 8-12-4.
(Source: P.A. 86-1211.)
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