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90_SB1565sam001
LRB9011620KDksam
1 AMENDMENT TO SENATE BILL 1565
2 AMENDMENT NO. . Amend Senate Bill 1565 by replacing
3 the title with the following:
4 "AN ACT concerning taxes."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Counties Code is amended by changing
8 Sections 5-1006, 5-1006.5, and 5-1007 as follows:
9 (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
10 Sec. 5-1006. Home Rule County Retailers' Occupation Tax
11 Law. Any county that is a home rule unit may impose a tax
12 upon all persons engaged in the business of selling tangible
13 personal property, other than an item of tangible personal
14 property titled or registered with an agency of this State's
15 government, at retail in the county on the gross receipts
16 from such sales made in the course of their business. If
17 imposed, this tax shall only be imposed in 1/4% increments.
18 On and after September 1, 1991, this additional tax may not
19 be imposed on the sales of food for human consumption which
20 is to be consumed off the premises where it is sold (other
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1 than alcoholic beverages, soft drinks and food which has been
2 prepared for immediate consumption) and prescription and
3 nonprescription medicines, drugs, medical appliances and
4 insulin, urine testing materials, syringes and needles used
5 by diabetics. The tax imposed by a home rule county pursuant
6 to this Section and all civil penalties that may be assessed
7 as an incident thereof shall be collected and enforced by the
8 State Department of Revenue. The certificate of registration
9 that is issued by the Department to a retailer under the
10 Retailers' Occupation Tax Act shall permit the retailer to
11 engage in a business that is taxable under any ordinance or
12 resolution enacted pursuant to this Section without
13 registering separately with the Department under such
14 ordinance or resolution or under this Section. The
15 Department shall have full power to administer and enforce
16 this Section; to collect all taxes and penalties due
17 hereunder; to dispose of taxes and penalties so collected in
18 the manner hereinafter provided; and to determine all rights
19 to credit memoranda arising on account of the erroneous
20 payment of tax or penalty hereunder. In the administration
21 of, and compliance with, this Section, the Department and
22 persons who are subject to this Section shall have the same
23 rights, remedies, privileges, immunities, powers and duties,
24 and be subject to the same conditions, restrictions,
25 limitations, penalties and definitions of terms, and employ
26 the same modes of procedure, as are prescribed in Sections 1,
27 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in
28 respect to all provisions therein other than the State rate
29 of tax), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
30 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
31 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
32 Penalty and Interest Act, as fully as if those provisions
33 were set forth herein.
34 No tax may be imposed by a home rule county pursuant to
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1 this Section unless the county also imposes a tax at the same
2 rate pursuant to Section 5-1007.
3 Persons subject to any tax imposed pursuant to the
4 authority granted in this Section may reimburse themselves
5 for their seller's tax liability hereunder by separately
6 stating such tax as an additional charge, which charge may be
7 stated in combination, in a single amount, with State tax
8 which sellers are required to collect under the Use Tax Act,
9 pursuant to such bracket schedules as the Department may
10 prescribe.
11 Whenever the Department determines that a refund should
12 be made under this Section to a claimant instead of issuing a
13 credit memorandum, the Department shall notify the State
14 Comptroller, who shall cause the order to be drawn for the
15 amount specified and to the person named in the notification
16 from the Department. The refund shall be paid by the State
17 Treasurer out of the home rule county retailers' occupation
18 tax fund.
19 The Department shall forthwith pay over to the State
20 Treasurer, ex officio, as trustee, all taxes and penalties
21 collected hereunder. On or before the 25th day of each
22 calendar month, the Department shall prepare and certify to
23 the Comptroller the disbursement of stated sums of money to
24 named counties, the counties to be those from which retailers
25 have paid taxes or penalties hereunder to the Department
26 during the second preceding calendar month. The amount to be
27 paid to each county shall be the amount (not including credit
28 memoranda) collected hereunder during the second preceding
29 calendar month by the Department plus an amount the
30 Department determines is necessary to offset any amounts that
31 were erroneously paid to a different taxing body, and not
32 including an amount equal to the amount of refunds made
33 during the second preceding calendar month by the Department
34 on behalf of such county, and not including any amount which
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1 the Department determines is necessary to offset any amounts
2 which were payable to a different taxing body but were
3 erroneously paid to the county. Within 10 days after receipt,
4 by the Comptroller, of the disbursement certification to the
5 counties provided for in this Section to be given to the
6 Comptroller by the Department, the Comptroller shall cause
7 the orders to be drawn for the respective amounts in
8 accordance with the directions contained in the
9 certification.
10 In addition to the disbursement required by the preceding
11 paragraph, an allocation shall be made in March of each year
12 to each county that received more than $500,000 in
13 disbursements under the preceding paragraph in the preceding
14 calendar year. The allocation shall be in an amount equal to
15 the average monthly distribution made to each such county
16 under the preceding paragraph during the preceding calendar
17 year (excluding the 2 months of highest receipts). The
18 distribution made in March of each year subsequent to the
19 year in which an allocation was made pursuant to this
20 paragraph and the preceding paragraph shall be reduced by the
21 amount allocated and disbursed under this paragraph in the
22 preceding calendar year. The Department shall prepare and
23 certify to the Comptroller for disbursement the allocations
24 made in accordance with this paragraph.
25 For the purpose of determining the local governmental
26 unit whose tax is applicable, a retail sale by a producer of
27 coal or other mineral mined in Illinois is a sale at retail
28 at the place where the coal or other mineral mined in
29 Illinois is extracted from the earth. This paragraph does
30 not apply to coal or other mineral when it is delivered or
31 shipped by the seller to the purchaser at a point outside
32 Illinois so that the sale is exempt under the United States
33 Constitution as a sale in interstate or foreign commerce.
34 Nothing in this Section shall be construed to authorize a
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1 county to impose a tax upon the privilege of engaging in any
2 business which under the Constitution of the United States
3 may not be made the subject of taxation by this State.
4 An ordinance or resolution imposing or discontinuing a
5 tax hereunder or effecting a change in the rate thereof shall
6 be adopted and a certified copy thereof filed with the
7 Department on or before the first day of June, whereupon the
8 Department shall proceed to administer and enforce this
9 Section as of the first day of September next following such
10 adoption and filing. Beginning January 1, 1992, an ordinance
11 or resolution imposing or discontinuing the tax hereunder or
12 effecting a change in the rate thereof shall be adopted and a
13 certified copy thereof filed with the Department on or before
14 the first day of July, whereupon the Department shall proceed
15 to administer and enforce this Section as of the first day of
16 October next following such adoption and filing. Beginning
17 January 1, 1993, an ordinance or resolution imposing or
18 discontinuing the tax hereunder or effecting a change in the
19 rate thereof shall be adopted and a certified copy thereof
20 filed with the Department on or before the first day of
21 October, whereupon the Department shall proceed to administer
22 and enforce this Section as of the first day of January next
23 following such adoption and filing. Beginning April 1, 1998,
24 an ordinance or resolution imposing or discontinuing the tax
25 hereunder or effecting a change in the rate thereof shall
26 either (i) be adopted and a certified copy thereof filed with
27 the Department on or before the first day of April, whereupon
28 the Department shall proceed to administer and enforce this
29 Section as of the first day of July next following the
30 adoption and filing; or (ii) be adopted and a certified copy
31 thereof filed with the Department on or before the first day
32 of October, whereupon the Department shall proceed to
33 administer and enforce this Section as of the first day of
34 January next following the adoption and filing.
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1 When certifying the amount of a monthly disbursement to a
2 county under this Section, the Department shall increase or
3 decrease such amount by an amount necessary to offset any
4 misallocation of previous disbursements. The offset amount
5 shall be the amount erroneously disbursed within the previous
6 6 months from the time a misallocation is discovered.
7 This Section shall be known and may be cited as the "Home
8 Rule County Retailers' Occupation Tax Law".
9 (Source: P.A. 86-962; 86-1028; 86-1475; 87-205; 87-895.)
10 (55 ILCS 5/5-1006.5)
11 Sec. 5-1006.5. Special County Retailers' Occupation Tax
12 For Public Safety.
13 (a) The county board of any county may impose a tax upon
14 all persons engaged in the business of selling tangible
15 personal property, other than personal property titled or
16 registered with an agency of this State's government, at
17 retail in the county on the gross receipts from the sales
18 made in the course of business to provide revenue to be used
19 exclusively for public safety purposes in that county, if a
20 proposition for the tax has been submitted to the electors of
21 that county and approved by a majority of those voting on the
22 question. If imposed, this tax shall be imposed only in
23 one-quarter percent increments. By resolution, the county
24 board may order the proposition to be submitted at any
25 election. The county clerk shall certify the question to the
26 proper election authority, who shall submit the proposition
27 at an election in accordance with the general election law.
28 The proposition shall be in substantially the following
29 form:
30 "Shall (name of county) be authorized to impose a
31 public safety tax at the rate of .... upon all persons
32 engaged in the business of selling tangible personal
33 property at retail in the county on gross receipts from
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1 the sales made in the course of their business to be used
2 for crime prevention, detention, and other public safety
3 purposes?"
4 Votes shall be recorded as Yes or No. If a majority of the
5 electors voting on the proposition vote in favor of it, the
6 county may impose the tax.
7 This additional tax may not be imposed on the sales of
8 food for human consumption that is to be consumed off the
9 premises where it is sold (other than alcoholic beverages,
10 soft drinks, and food which has been prepared for immediate
11 consumption) and prescription and non-prescription medicines,
12 drugs, medical appliances and insulin, urine testing
13 materials, syringes, and needles used by diabetics. The tax
14 imposed by a county under this Section and all civil
15 penalties that may be assessed as an incident of the tax
16 shall be collected and enforced by the Illinois Department of
17 Revenue. The certificate of registration that is issued by
18 the Department to a retailer under the Retailers' Occupation
19 Tax Act shall permit the retailer to engage in a business
20 that is taxable without registering separately with the
21 Department under an ordinance or resolution under this
22 Section. The Department has full power to administer and
23 enforce this Section, to collect all taxes and penalties due
24 under this Section, to dispose of taxes and penalties so
25 collected in the manner provided in this Section, and to
26 determine all rights to credit memoranda arising on account
27 of the erroneous payment of a tax or penalty under this
28 Section. In the administration of and compliance with this
29 Section, the Department and persons who are subject to this
30 Section shall (i) have the same rights, remedies, privileges,
31 immunities, powers, and duties, (ii) be subject to the same
32 conditions, restrictions, limitations, penalties, and
33 definitions of terms, and (iii) employ the same modes of
34 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
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1 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to
2 all provisions contained in those Sections other than the
3 State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except
4 provisions relating to transaction returns and quarter
5 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
6 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13
7 of the Retailers' Occupation Tax Act and Section 3-7 of the
8 Uniform Penalty and Interest Act as if those provisions were
9 set forth in this Section.
10 Persons subject to any tax imposed under the authority
11 granted in this Section may reimburse themselves for their
12 sellers' tax liability by separately stating the tax as an
13 additional charge, which charge may be stated in combination,
14 in a single amount, with State tax which sellers are required
15 to collect under the Use Tax Act, pursuant to such bracketed
16 schedules as the Department may prescribe.
17 Whenever the Department determines that a refund should
18 be made under this Section to a claimant instead of issuing a
19 credit memorandum, the Department shall notify the State
20 Comptroller, who shall cause the order to be drawn for the
21 amount specified and to the person named in the notification
22 from the Department. The refund shall be paid by the State
23 Treasurer out of the County Public Safety Retailers'
24 Occupation Tax Fund.
25 (b) If a tax has been imposed under subsection (a), a
26 service occupation tax shall also be imposed at the same rate
27 upon all persons engaged, in the county, in the business of
28 making sales of service, who, as an incident to making those
29 sales of service, transfer tangible personal property within
30 the county as an incident to a sale of service. This tax may
31 not be imposed on sales of food for human consumption that is
32 to be consumed off the premises where it is sold (other than
33 alcoholic beverages, soft drinks, and food prepared for
34 immediate consumption) and prescription and non-prescription
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1 medicines, drugs, medical appliances and insulin, urine
2 testing materials, syringes, and needles used by diabetics.
3 The tax imposed under this subsection and all civil penalties
4 that may be assessed as an incident thereof shall be
5 collected and enforced by the Department of Revenue. The
6 Department has full power to administer and enforce this
7 subsection; to collect all taxes and penalties due hereunder;
8 to dispose of taxes and penalties so collected in the manner
9 hereinafter provided; and to determine all rights to credit
10 memoranda arising on account of the erroneous payment of tax
11 or penalty hereunder. In the administration of, and
12 compliance with this subsection, the Department and persons
13 who are subject to this paragraph shall (i) have the same
14 rights, remedies, privileges, immunities, powers, and duties,
15 (ii) be subject to the same conditions, restrictions,
16 limitations, penalties, exclusions, exemptions, and
17 definitions of terms, and (iii) employ the same modes of
18 procedure as are prescribed in Sections 1a-1, 2 (except that
19 the reference to State in the definition of supplier
20 maintaining a place of business in this State shall mean the
21 county), 2a, 2b, 2c, 3 through 3-50 (in respect to all
22 provisions therein other than the State rate of tax), 4
23 (except that the reference to the State shall be to the
24 county), 5, 7, 8 (except that the jurisdiction to which the
25 tax shall be a debt to the extent indicated in that Section 8
26 shall be the county), 9 (except as to the disposition of
27 taxes and penalties collected, and except that the returned
28 merchandise credit for this tax may not be taken against any
29 State tax), 10, 11, 12 (except the reference therein to
30 Section 2b of the Retailers' Occupation Tax Act), 13 (except
31 that any reference to the State shall mean the county), the
32 first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
33 Service Occupation Tax Act and Section 3-7 of the Uniform
34 Penalty and Interest Act, as fully as if those provisions
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1 were set forth herein.
2 Persons subject to any tax imposed under the authority
3 granted in this subsection may reimburse themselves for their
4 serviceman's tax liability by separately stating the tax as
5 an additional charge, which charge may be stated in
6 combination, in a single amount, with State tax that
7 servicemen are authorized to collect under the Service Use
8 Tax Act, in accordance with such bracket schedules as the
9 Department may prescribe.
10 Whenever the Department determines that a refund should
11 be made under this subsection to a claimant instead of
12 issuing a credit memorandum, the Department shall notify the
13 State Comptroller, who shall cause the warrant to be drawn
14 for the amount specified, and to the person named, in the
15 notification from the Department. The refund shall be paid
16 by the State Treasurer out of the County Public Safety
17 Retailers' Occupation Fund.
18 Nothing in this subsection shall be construed to
19 authorize the county to impose a tax upon the privilege of
20 engaging in any business which under the Constitution of the
21 United States may not be made the subject of taxation by the
22 State.
23 (c) The Department shall immediately pay over to the
24 State Treasurer, ex officio, as trustee, all taxes and
25 penalties collected under this Section to be deposited into
26 the County Public Safety Retailers' Occupation Tax Fund,
27 which shall be an unappropriated trust fund held outside of
28 the State treasury. On or before the 25th day of each
29 calendar month, the Department shall prepare and certify to
30 the Comptroller the disbursement of stated sums of money to
31 the counties from which retailers have paid taxes or
32 penalties to the Department during the second preceding
33 calendar month. The amount to be paid to each county shall
34 be the amount (not including credit memoranda) collected
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1 under this Section during the second preceding calendar month
2 by the Department plus an amount the Department determines is
3 necessary to offset any amounts that were erroneously paid to
4 a different taxing body, and not including (i) an amount
5 equal to the amount of refunds made during the second
6 preceding calendar month by the Department on behalf of the
7 county and (ii) any amount that the Department determines is
8 necessary to offset any amounts that were payable to a
9 different taxing body but were erroneously paid to the
10 county. Within 10 days after receipt by the Comptroller of
11 the disbursement certification to the counties provided for
12 in this Section to be given to the Comptroller by the
13 Department, the Comptroller shall cause the orders to be
14 drawn for the respective amounts in accordance with
15 directions contained in the certification.
16 In addition to the disbursement required by the preceding
17 paragraph, an allocation shall be made in March of each year
18 to each county that received more than $500,000 in
19 disbursements under the preceding paragraph in the preceding
20 calendar year. The allocation shall be in an amount equal to
21 the average monthly distribution made to each such county
22 under the preceding paragraph during the preceding calendar
23 year (excluding the 2 months of highest receipts). The
24 distribution made in March of each year subsequent to the
25 year in which an allocation was made pursuant to this
26 paragraph and the preceding paragraph shall be reduced by the
27 amount allocated and disbursed under this paragraph in the
28 preceding calendar year. The Department shall prepare and
29 certify to the Comptroller for disbursement the allocations
30 made in accordance with this paragraph.
31 (d) For the purpose of determining the local
32 governmental unit whose tax is applicable, a retail sale by a
33 producer of coal or another mineral mined in Illinois is a
34 sale at retail at the place where the coal or other mineral
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1 mined in Illinois is extracted from the earth. This
2 paragraph does not apply to coal or another mineral when it
3 is delivered or shipped by the seller to the purchaser at a
4 point outside Illinois so that the sale is exempt under the
5 United States Constitution as a sale in interstate or foreign
6 commerce.
7 (e) Nothing in this Section shall be construed to
8 authorize a county to impose a tax upon the privilege of
9 engaging in any business that under the Constitution of the
10 United States may not be made the subject of taxation by this
11 State.
12 (e-5) If a county imposes a tax under this Section, the
13 county board may, by ordinance, discontinue or lower the rate
14 of the tax. If the county board lowers the tax rate or
15 discontinues the tax, a referendum must be held in accordance
16 with subsection (a) of this Section in order to increase the
17 rate of the tax or to reimpose the discontinued tax.
18 (f) Beginning April 1, 1998, the results of any election
19 authorizing a proposition to impose a tax under this Section
20 or effecting a change in the rate of tax, or any ordinance
21 lowering the rate or discontinuing the tax, shall be
22 certified by the county clerk and filed with the Illinois
23 Department of Revenue either (i) on or before the first day
24 of April, whereupon the Department shall proceed to
25 administer and enforce the tax as of the first day of July
26 next following the filing; or (ii) on or before the first day
27 of October, whereupon the Department shall proceed to
28 administer and enforce the tax as of the first day of January
29 next following the filing. on or before the first day of
30 June. The Illinois Department of Revenue shall then proceed
31 to administer and enforce this Section or to lower the rate
32 or discontinue the tax, as the case may be, as of the first
33 day of January next following the filing.
34 (g) When certifying the amount of a monthly disbursement
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1 to a county under this Section, the Department shall increase
2 or decrease the amounts by an amount necessary to offset any
3 miscalculation of previous disbursements. The offset amount
4 shall be the amount erroneously disbursed within the previous
5 6 months from the time a miscalculation is discovered.
6 (h) This Section may be cited as the "Special County
7 Occupation Tax For Public Safety Law".
8 (i) For purposes of this Section, "public safety"
9 includes but is not limited to fire fighting, police,
10 medical, ambulance, or other emergency services.
11 (Source: P.A. 89-107, eff. 1-1-96; 89-718, eff. 3-7-97;
12 90-190, eff. 7-24-97; 90-267, eff. 7-30-97; 90-552, eff.
13 12-12-97; 90-562, eff. 12-16-97; revised 12-30-97.)
14 (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
15 Sec. 5-1007. Home Rule County Service Occupation Tax Law.
16 The corporate authorities of a home rule county may impose a
17 tax upon all persons engaged, in such county, in the business
18 of making sales of service at the same rate of tax imposed
19 pursuant to Section 5-1006 of the selling price of all
20 tangible personal property transferred by such servicemen
21 either in the form of tangible personal property or in the
22 form of real estate as an incident to a sale of service. If
23 imposed, such tax shall only be imposed in 1/4% increments.
24 On and after September 1, 1991, this additional tax may not
25 be imposed on the sales of food for human consumption which
26 is to be consumed off the premises where it is sold (other
27 than alcoholic beverages, soft drinks and food which has been
28 prepared for immediate consumption) and prescription and
29 nonprescription medicines, drugs, medical appliances and
30 insulin, urine testing materials, syringes and needles used
31 by diabetics. The tax imposed by a home rule county pursuant
32 to this Section and all civil penalties that may be assessed
33 as an incident thereof shall be collected and enforced by the
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1 State Department of Revenue. The certificate of registration
2 which is issued by the Department to a retailer under the
3 Retailers' Occupation Tax Act or under the Service Occupation
4 Tax Act shall permit such registrant to engage in a business
5 which is taxable under any ordinance or resolution enacted
6 pursuant to this Section without registering separately with
7 the Department under such ordinance or resolution or under
8 this Section. The Department shall have full power to
9 administer and enforce this Section; to collect all taxes and
10 penalties due hereunder; to dispose of taxes and penalties so
11 collected in the manner hereinafter provided; and to
12 determine all rights to credit memoranda arising on account
13 of the erroneous payment of tax or penalty hereunder. In the
14 administration of, and compliance with, this Section the
15 Department and persons who are subject to this Section shall
16 have the same rights, remedies, privileges, immunities,
17 powers and duties, and be subject to the same conditions,
18 restrictions, limitations, penalties and definitions of
19 terms, and employ the same modes of procedure, as are
20 prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
21 respect to all provisions therein other than the State rate
22 of tax), 4 (except that the reference to the State shall be
23 to the taxing county), 5, 7, 8 (except that the jurisdiction
24 to which the tax shall be a debt to the extent indicated in
25 that Section 8 shall be the taxing county), 9 (except as to
26 the disposition of taxes and penalties collected, and except
27 that the returned merchandise credit for this county tax may
28 not be taken against any State tax), 10, 11, 12 (except the
29 reference therein to Section 2b of the Retailers' Occupation
30 Tax Act), 13 (except that any reference to the State shall
31 mean the taxing county), the first paragraph of Section 15,
32 16, 17, 18, 19 and 20 of the Service Occupation Tax Act and
33 Section 3-7 of the Uniform Penalty and Interest Act, as fully
34 as if those provisions were set forth herein.
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1 No tax may be imposed by a home rule county pursuant to
2 this Section unless such county also imposes a tax at the
3 same rate pursuant to Section 5-1006.
4 Persons subject to any tax imposed pursuant to the
5 authority granted in this Section may reimburse themselves
6 for their serviceman's tax liability hereunder by separately
7 stating such tax as an additional charge, which charge may be
8 stated in combination, in a single amount, with State tax
9 which servicemen are authorized to collect under the Service
10 Use Tax Act, pursuant to such bracket schedules as the
11 Department may prescribe.
12 Whenever the Department determines that a refund should
13 be made under this Section to a claimant instead of issuing
14 credit memorandum, the Department shall notify the State
15 Comptroller, who shall cause the order to be drawn for the
16 amount specified, and to the person named, in such
17 notification from the Department. Such refund shall be paid
18 by the State Treasurer out of the home rule county retailers'
19 occupation tax fund.
20 The Department shall forthwith pay over to the State
21 Treasurer, ex-officio, as trustee, all taxes and penalties
22 collected hereunder. On or before the 25th day of each
23 calendar month, the Department shall prepare and certify to
24 the Comptroller the disbursement of stated sums of money to
25 named counties, the counties to be those from which suppliers
26 and servicemen have paid taxes or penalties hereunder to the
27 Department during the second preceding calendar month. The
28 amount to be paid to each county shall be the amount (not
29 including credit memoranda) collected hereunder during the
30 second preceding calendar month by the Department, and not
31 including an amount equal to the amount of refunds made
32 during the second preceding calendar month by the Department
33 on behalf of such county. Within 10 days after receipt, by
34 the Comptroller, of the disbursement certification to the
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1 counties provided for in this Section to be given to the
2 Comptroller by the Department, the Comptroller shall cause
3 the orders to be drawn for the respective amounts in
4 accordance with the directions contained in such
5 certification.
6 In addition to the disbursement required by the preceding
7 paragraph, an allocation shall be made in each year to each
8 county which received more than $500,000 in disbursements
9 under the preceding paragraph in the preceding calendar year.
10 The allocation shall be in an amount equal to the average
11 monthly distribution made to each such county under the
12 preceding paragraph during the preceding calendar year
13 (excluding the 2 months of highest receipts). The
14 distribution made in March of each year subsequent to the
15 year in which an allocation was made pursuant to this
16 paragraph and the preceding paragraph shall be reduced by the
17 amount allocated and disbursed under this paragraph in the
18 preceding calendar year. The Department shall prepare and
19 certify to the Comptroller for disbursement the allocations
20 made in accordance with this paragraph.
21 Nothing in this Section shall be construed to authorize a
22 county to impose a tax upon the privilege of engaging in any
23 business which under the Constitution of the United States
24 may not be made the subject of taxation by this State.
25 An ordinance or resolution imposing or discontinuing a
26 tax hereunder or effecting a change in the rate thereof shall
27 be adopted and a certified copy thereof filed with the
28 Department on or before the first day of June, whereupon the
29 Department shall proceed to administer and enforce this
30 Section as of the first day of September next following such
31 adoption and filing. Beginning January 1, 1992, an ordinance
32 or resolution imposing or discontinuing the tax hereunder or
33 effecting a change in the rate thereof shall be adopted and a
34 certified copy thereof filed with the Department on or before
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1 the first day of July, whereupon the Department shall proceed
2 to administer and enforce this Section as of the first day of
3 October next following such adoption and filing. Beginning
4 January 1, 1993, an ordinance or resolution imposing or
5 discontinuing the tax hereunder or effecting a change in the
6 rate thereof shall be adopted and a certified copy thereof
7 filed with the Department on or before the first day of
8 October, whereupon the Department shall proceed to administer
9 and enforce this Section as of the first day of January next
10 following such adoption and filing. Beginning April 1, 1998,
11 an ordinance or resolution imposing or discontinuing the tax
12 hereunder or effecting a change in the rate thereof shall
13 either (i) be adopted and a certified copy thereof filed with
14 the Department on or before the first day of April, whereupon
15 the Department shall proceed to administer and enforce this
16 Section as of the first day of July next following the
17 adoption and filing; or (ii) be adopted and a certified copy
18 thereof filed with the Department on or before the first day
19 of October, whereupon the Department shall proceed to
20 administer and enforce this Section as of the first day of
21 January next following the adoption and filing.
22 This Section shall be known and may be cited as the "Home
23 Rule County Service Occupation Tax Law".
24 (Source: P.A. 86-962; 86-1028; 86-1475; 87-205; 87-895.)
25 Section 10. The Illinois Municipal Code is amended by
26 changing Sections 8-11-1, 8-11-5, and 8-11-6 as follows:
27 (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
28 Sec. 8-11-1. Home Rule Municipal Retailers' Occupation
29 Tax Act. The corporate authorities of a home rule
30 municipality may impose a tax upon all persons engaged in the
31 business of selling tangible personal property, other than an
32 item of tangible personal property titled or registered with
-18- LRB9011620KDksam
1 an agency of this State's government, at retail in the
2 municipality on the gross receipts from these sales made in
3 the course of such business. If imposed, the tax shall only
4 be imposed in 1/4% increments. On and after September 1,
5 1991, this additional tax may not be imposed on the sales of
6 food for human consumption that is to be consumed off the
7 premises where it is sold (other than alcoholic beverages,
8 soft drinks and food that has been prepared for immediate
9 consumption) and prescription and nonprescription medicines,
10 drugs, medical appliances and insulin, urine testing
11 materials, syringes and needles used by diabetics. The tax
12 imposed by a home rule municipality under this Section and
13 all civil penalties that may be assessed as an incident of
14 the tax shall be collected and enforced by the State
15 Department of Revenue. The certificate of registration that
16 is issued by the Department to a retailer under the
17 Retailers' Occupation Tax Act shall permit the retailer to
18 engage in a business that is taxable under any ordinance or
19 resolution enacted pursuant to this Section without
20 registering separately with the Department under such
21 ordinance or resolution or under this Section. The
22 Department shall have full power to administer and enforce
23 this Section; to collect all taxes and penalties due
24 hereunder; to dispose of taxes and penalties so collected in
25 the manner hereinafter provided; and to determine all rights
26 to credit memoranda arising on account of the erroneous
27 payment of tax or penalty hereunder. In the administration
28 of, and compliance with, this Section the Department and
29 persons who are subject to this Section shall have the same
30 rights, remedies, privileges, immunities, powers and duties,
31 and be subject to the same conditions, restrictions,
32 limitations, penalties and definitions of terms, and employ
33 the same modes of procedure, as are prescribed in Sections 1,
34 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in
-19- LRB9011620KDksam
1 respect to all provisions therein other than the State rate
2 of tax), 2c, 3 (except as to the disposition of taxes and
3 penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
4 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of
5 the Retailers' Occupation Tax Act and Section 3-7 of the
6 Uniform Penalty and Interest Act, as fully as if those
7 provisions were set forth herein.
8 No tax may be imposed by a home rule municipality under
9 this Section unless the municipality also imposes a tax at
10 the same rate under Section 8-11-5 of this Act.
11 Persons subject to any tax imposed under the authority
12 granted in this Section may reimburse themselves for their
13 seller's tax liability hereunder by separately stating that
14 tax as an additional charge, which charge may be stated in
15 combination, in a single amount, with State tax which sellers
16 are required to collect under the Use Tax Act, pursuant to
17 such bracket schedules as the Department may prescribe.
18 Whenever the Department determines that a refund should
19 be made under this Section to a claimant instead of issuing a
20 credit memorandum, the Department shall notify the State
21 Comptroller, who shall cause the order to be drawn for the
22 amount specified and to the person named in the notification
23 from the Department. The refund shall be paid by the State
24 Treasurer out of the home rule municipal retailers'
25 occupation tax fund.
26 The Department shall immediately pay over to the State
27 Treasurer, ex officio, as trustee, all taxes and penalties
28 collected hereunder. On or before the 25th day of each
29 calendar month, the Department shall prepare and certify to
30 the Comptroller the disbursement of stated sums of money to
31 named municipalities, the municipalities to be those from
32 which retailers have paid taxes or penalties hereunder to the
33 Department during the second preceding calendar month. The
34 amount to be paid to each municipality shall be the amount
-20- LRB9011620KDksam
1 (not including credit memoranda) collected hereunder during
2 the second preceding calendar month by the Department plus an
3 amount the Department determines is necessary to offset any
4 amounts that were erroneously paid to a different taxing
5 body, and not including an amount equal to the amount of
6 refunds made during the second preceding calendar month by
7 the Department on behalf of such municipality, and not
8 including any amount that the Department determines is
9 necessary to offset any amounts that were payable to a
10 different taxing body but were erroneously paid to the
11 municipality. Within 10 days after receipt by the Comptroller
12 of the disbursement certification to the municipalities
13 provided for in this Section to be given to the Comptroller
14 by the Department, the Comptroller shall cause the orders to
15 be drawn for the respective amounts in accordance with the
16 directions contained in the certification.
17 In addition to the disbursement required by the preceding
18 paragraph and in order to mitigate delays caused by
19 distribution procedures, an allocation shall, if requested,
20 be made within 10 days after January 14, 1991, and in
21 November of 1991 and each year thereafter, to each
22 municipality that received more than $500,000 during the
23 preceding fiscal year, (July 1 through June 30) whether
24 collected by the municipality or disbursed by the Department
25 as required by this Section. Within 10 days after January 14,
26 1991, participating municipalities shall notify the
27 Department in writing of their intent to participate. In
28 addition, for the initial distribution, participating
29 municipalities shall certify to the Department the amounts
30 collected by the municipality for each month under its home
31 rule occupation and service occupation tax during the period
32 July 1, 1989 through June 30, 1990. The allocation within 10
33 days after January 14, 1991, shall be in an amount equal to
34 the monthly average of these amounts, excluding the 2 months
-21- LRB9011620KDksam
1 of highest receipts. The monthly average for the period of
2 July 1, 1990 through June 30, 1991 will be determined as
3 follows: the amounts collected by the municipality under its
4 home rule occupation and service occupation tax during the
5 period of July 1, 1990 through September 30, 1990, plus
6 amounts collected by the Department and paid to such
7 municipality through June 30, 1991, excluding the 2 months of
8 highest receipts. The monthly average for each subsequent
9 period of July 1 through June 30 shall be an amount equal to
10 the monthly distribution made to each such municipality under
11 the preceding paragraph during this period, excluding the 2
12 months of highest receipts. The distribution made in
13 November 1991 and each year thereafter under this paragraph
14 and the preceding paragraph shall be reduced by the amount
15 allocated and disbursed under this paragraph in the preceding
16 period of July 1 through June 30. The Department shall
17 prepare and certify to the Comptroller for disbursement the
18 allocations made in accordance with this paragraph.
19 For the purpose of determining the local governmental
20 unit whose tax is applicable, a retail sale by a producer of
21 coal or other mineral mined in Illinois is a sale at retail
22 at the place where the coal or other mineral mined in
23 Illinois is extracted from the earth. This paragraph does
24 not apply to coal or other mineral when it is delivered or
25 shipped by the seller to the purchaser at a point outside
26 Illinois so that the sale is exempt under the United States
27 Constitution as a sale in interstate or foreign commerce.
28 Nothing in this Section shall be construed to authorize a
29 municipality to impose a tax upon the privilege of engaging
30 in any business which under the Constitution of the United
31 States may not be made the subject of taxation by this State.
32 An ordinance or resolution imposing or discontinuing a
33 tax hereunder or effecting a change in the rate thereof shall
34 be adopted and a certified copy thereof filed with the
-22- LRB9011620KDksam
1 Department on or before the first day of June, whereupon the
2 Department shall proceed to administer and enforce this
3 Section as of the first day of September next following the
4 adoption and filing. Beginning January 1, 1992, an ordinance
5 or resolution imposing or discontinuing the tax hereunder or
6 effecting a change in the rate thereof shall be adopted and a
7 certified copy thereof filed with the Department on or before
8 the first day of July, whereupon the Department shall proceed
9 to administer and enforce this Section as of the first day of
10 October next following such adoption and filing. Beginning
11 January 1, 1993, an ordinance or resolution imposing or
12 discontinuing the tax hereunder or effecting a change in the
13 rate thereof shall be adopted and a certified copy thereof
14 filed with the Department on or before the first day of
15 October, whereupon the Department shall proceed to administer
16 and enforce this Section as of the first day of January next
17 following the adoption and filing. However, a municipality
18 located in a county with a population in excess of 3,000,000
19 that elected to become a home rule unit at the general
20 primary election in 1994 may adopt an ordinance or resolution
21 imposing the tax under this Section and file a certified copy
22 of the ordinance or resolution with the Department on or
23 before July 1, 1994. The Department shall then proceed to
24 administer and enforce this Section as of October 1, 1994.
25 Beginning April 1, 1998, an ordinance or resolution imposing
26 or discontinuing the tax hereunder or effecting a change in
27 the rate thereof shall either (i) be adopted and a certified
28 copy thereof filed with the Department on or before the first
29 day of April, whereupon the Department shall proceed to
30 administer and enforce this Section as of the first day of
31 July next following the adoption and filing; or (ii) be
32 adopted and a certified copy thereof filed with the
33 Department on or before the first day of October, whereupon
34 the Department shall proceed to administer and enforce this
-23- LRB9011620KDksam
1 Section as of the first day of January next following the
2 adoption and filing.
3 When certifying the amount of a monthly disbursement to a
4 municipality under this Section, the Department shall
5 increase or decrease the amount by an amount necessary to
6 offset any misallocation of previous disbursements. The
7 offset amount shall be the amount erroneously disbursed
8 within the previous 6 months from the time a misallocation is
9 discovered.
10 Any unobligated balance remaining in the Municipal
11 Retailers' Occupation Tax Fund on December 31, 1989, which
12 fund was abolished by Public Act 85-1135, and all receipts of
13 municipal tax as a result of audits of liability periods
14 prior to January 1, 1990, shall be paid into the Local
15 Government Tax Fund for distribution as provided by this
16 Section prior to the enactment of Public Act 85-1135. All
17 receipts of municipal tax as a result of an assessment not
18 arising from an audit, for liability periods prior to January
19 1, 1990, shall be paid into the Local Government Tax Fund for
20 distribution before July 1, 1990, as provided by this Section
21 prior to the enactment of Public Act 85-1135; and on and
22 after July 1, 1990, all such receipts shall be distributed as
23 provided in Section 6z-18 of the State Finance Act.
24 As used in this Section, "municipal" and "municipality"
25 means a city, village or incorporated town, including an
26 incorporated town that has superseded a civil township.
27 This Section shall be known and may be cited as the Home
28 Rule Municipal Retailers' Occupation Tax Act.
29 (Source: P.A. 87-205; 87-435; 87-895; 88-603, eff. 9-1-94.)
30 (65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
31 Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
32 Act. The corporate authorities of a home rule municipality
33 may impose a tax upon all persons engaged, in such
-24- LRB9011620KDksam
1 municipality, in the business of making sales of service at
2 the same rate of tax imposed pursuant to Section 8-11-1, of
3 the selling price of all tangible personal property
4 transferred by such servicemen either in the form of tangible
5 personal property or in the form of real estate as an
6 incident to a sale of service. If imposed, such tax shall
7 only be imposed in 1/4% increments. On and after September 1,
8 1991, this additional tax may not be imposed on the sales of
9 food for human consumption which is to be consumed off the
10 premises where it is sold (other than alcoholic beverages,
11 soft drinks and food which has been prepared for immediate
12 consumption) and prescription and nonprescription medicines,
13 drugs, medical appliances and insulin, urine testing
14 materials, syringes and needles used by diabetics. The tax
15 imposed by a home rule municipality pursuant to this Section
16 and all civil penalties that may be assessed as an incident
17 thereof shall be collected and enforced by the State
18 Department of Revenue. The certificate of registration which
19 is issued by the Department to a retailer under the
20 Retailers' Occupation Tax Act or under the Service Occupation
21 Tax Act shall permit such registrant to engage in a business
22 which is taxable under any ordinance or resolution enacted
23 pursuant to this Section without registering separately with
24 the Department under such ordinance or resolution or under
25 this Section. The Department shall have full power to
26 administer and enforce this Section; to collect all taxes and
27 penalties due hereunder; to dispose of taxes and penalties so
28 collected in the manner hereinafter provided, and to
29 determine all rights to credit memoranda arising on account
30 of the erroneous payment of tax or penalty hereunder. In the
31 administration of, and compliance with, this Section the
32 Department and persons who are subject to this Section shall
33 have the same rights, remedies, privileges, immunities,
34 powers and duties, and be subject to the same conditions,
-25- LRB9011620KDksam
1 restrictions, limitations, penalties and definitions of
2 terms, and employ the same modes of procedure, as are
3 prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
4 respect to all provisions therein other than the State rate
5 of tax), 4 (except that the reference to the State shall be
6 to the taxing municipality), 5, 7, 8 (except that the
7 jurisdiction to which the tax shall be a debt to the extent
8 indicated in that Section 8 shall be the taxing
9 municipality), 9 (except as to the disposition of taxes and
10 penalties collected, and except that the returned merchandise
11 credit for this municipal tax may not be taken against any
12 State tax), 10, 11, 12 (except the reference therein to
13 Section 2b of the Retailers' Occupation Tax Act), 13 (except
14 that any reference to the State shall mean the taxing
15 municipality), the first paragraph of Section 15, 16, 17
16 (except that credit memoranda issued hereunder may not be
17 used to discharge any State tax liability), 18, 19 and 20 of
18 the Service Occupation Tax Act and Section 3-7 of the Uniform
19 Penalty and Interest Act, as fully as if those provisions
20 were set forth herein.
21 No tax may be imposed by a home rule municipality
22 pursuant to this Section unless such municipality also
23 imposes a tax at the same rate pursuant to Section 8-11-1 of
24 this Act.
25 Persons subject to any tax imposed pursuant to the
26 authority granted in this Section may reimburse themselves
27 for their serviceman's tax liability hereunder by separately
28 stating such tax as an additional charge, which charge may be
29 stated in combination, in a single amount, with State tax
30 which servicemen are authorized to collect under the Service
31 Use Tax Act, pursuant to such bracket schedules as the
32 Department may prescribe.
33 Whenever the Department determines that a refund should
34 be made under this Section to a claimant instead of issuing
-26- LRB9011620KDksam
1 credit memorandum, the Department shall notify the State
2 Comptroller, who shall cause the order to be drawn for the
3 amount specified, and to the person named, in such
4 notification from the Department. Such refund shall be paid
5 by the State Treasurer out of the home rule municipal
6 retailers' occupation tax fund.
7 The Department shall forthwith pay over to the State
8 Treasurer, ex-officio, as trustee, all taxes and penalties
9 collected hereunder. On or before the 25th day of each
10 calendar month, the Department shall prepare and certify to
11 the Comptroller the disbursement of stated sums of money to
12 named municipalities, the municipalities to be those from
13 which suppliers and servicemen have paid taxes or penalties
14 hereunder to the Department during the second preceding
15 calendar month. The amount to be paid to each municipality
16 shall be the amount (not including credit memoranda)
17 collected hereunder during the second preceding calendar
18 month by the Department, and not including an amount equal to
19 the amount of refunds made during the second preceding
20 calendar month by the Department on behalf of such
21 municipality. Within 10 days after receipt, by the
22 Comptroller, of the disbursement certification to the
23 municipalities, provided for in this Section to be given to
24 the Comptroller by the Department, the Comptroller shall
25 cause the orders to be drawn for the respective amounts in
26 accordance with the directions contained in such
27 certification.
28 In addition to the disbursement required by the preceding
29 paragraph and in order to mitigate delays caused by
30 distribution procedures, an allocation shall, if requested,
31 be made within 10 days after January 14, 1991, and in
32 November of 1991 and each year thereafter, to each
33 municipality that received more than $500,000 during the
34 preceding fiscal year, (July 1 through June 30) whether
-27- LRB9011620KDksam
1 collected by the municipality or disbursed by the Department
2 as required by this Section. Within 10 days after January 14,
3 1991, participating municipalities shall notify the
4 Department in writing of their intent to participate. In
5 addition, for the initial distribution, participating
6 municipalities shall certify to the Department the amounts
7 collected by the municipality for each month under its home
8 rule occupation and service occupation tax during the period
9 July 1, 1989 through June 30, 1990. The allocation within 10
10 days after January 14, 1991, shall be in an amount equal to
11 the monthly average of these amounts, excluding the 2 months
12 of highest receipts. Monthly average for the period of July
13 1, 1990 through June 30, 1991 will be determined as follows:
14 the amounts collected by the municipality under its home rule
15 occupation and service occupation tax during the period of
16 July 1, 1990 through September 30, 1990, plus amounts
17 collected by the Department and paid to such municipality
18 through June 30, 1991, excluding the 2 months of highest
19 receipts. The monthly average for each subsequent period of
20 July 1 through June 30 shall be an amount equal to the
21 monthly distribution made to each such municipality under the
22 preceding paragraph during this period, excluding the 2
23 months of highest receipts. The distribution made in
24 November 1991 and each year thereafter under this paragraph
25 and the preceding paragraph shall be reduced by the amount
26 allocated and disbursed under this paragraph in the preceding
27 period of July 1 through June 30. The Department shall
28 prepare and certify to the Comptroller for disbursement the
29 allocations made in accordance with this paragraph.
30 Nothing in this Section shall be construed to authorize a
31 municipality to impose a tax upon the privilege of engaging
32 in any business which under the constitution of the United
33 States may not be made the subject of taxation by this State.
34 An ordinance or resolution imposing or discontinuing a
-28- LRB9011620KDksam
1 tax hereunder or effecting a change in the rate thereof shall
2 be adopted and a certified copy thereof filed with the
3 Department on or before the first day of June, whereupon the
4 Department shall proceed to administer and enforce this
5 Section as of the first day of September next following such
6 adoption and filing. Beginning January 1, 1992, an ordinance
7 or resolution imposing or discontinuing the tax hereunder or
8 effecting a change in the rate thereof shall be adopted and a
9 certified copy thereof filed with the Department on or before
10 the first day of July, whereupon the Department shall proceed
11 to administer and enforce this Section as of the first day of
12 October next following such adoption and filing. Beginning
13 January 1, 1993, an ordinance or resolution imposing or
14 discontinuing the tax hereunder or effecting a change in the
15 rate thereof shall be adopted and a certified copy thereof
16 filed with the Department on or before the first day of
17 October, whereupon the Department shall proceed to administer
18 and enforce this Section as of the first day of January next
19 following such adoption and filing. However, a municipality
20 located in a county with a population in excess of 3,000,000
21 that elected to become a home rule unit at the general
22 primary election in 1994 may adopt an ordinance or resolution
23 imposing the tax under this Section and file a certified copy
24 of the ordinance or resolution with the Department on or
25 before July 1, 1994. The Department shall then proceed to
26 administer and enforce this Section as of October 1, 1994.
27 Beginning April 1, 1998, an ordinance or resolution imposing
28 or discontinuing the tax hereunder or effecting a change in
29 the rate thereof shall either (i) be adopted and a certified
30 copy thereof filed with the Department on or before the first
31 day of April, whereupon the Department shall proceed to
32 administer and enforce this Section as of the first day of
33 July next following the adoption and filing; or (ii) be
34 adopted and a certified copy thereof filed with the
-29- LRB9011620KDksam
1 Department on or before the first day of October, whereupon
2 the Department shall proceed to administer and enforce this
3 Section as of the first day of January next following the
4 adoption and filing.
5 Any unobligated balance remaining in the Municipal
6 Retailers' Occupation Tax Fund on December 31, 1989, which
7 fund was abolished by Public Act 85-1135, and all receipts of
8 municipal tax as a result of audits of liability periods
9 prior to January 1, 1990, shall be paid into the Local
10 Government Tax Fund, for distribution as provided by this
11 Section prior to the enactment of Public Act 85-1135. All
12 receipts of municipal tax as a result of an assessment not
13 arising from an audit, for liability periods prior to January
14 1, 1990, shall be paid into the Local Government Tax Fund for
15 distribution before July 1, 1990, as provided by this Section
16 prior to the enactment of Public Act 85-1135, and on and
17 after July 1, 1990, all such receipts shall be distributed as
18 provided in Section 6z-18 of the State Finance Act.
19 As used in this Section, "municipal" and "municipality"
20 means a city, village or incorporated town, including an
21 incorporated town which has superseded a civil township.
22 This Section shall be known and may be cited as the Home
23 Rule Municipal Service Occupation Tax Act.
24 (Source: P.A. 87-205; 87-435; 87-895; 88-603, eff. 9-1-94.)
25 (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
26 Sec. 8-11-6. Home Rule Municipal Use Tax Act.
27 (a) The corporate authorities of a home rule
28 municipality may impose a tax upon the privilege of using, in
29 such municipality, any item of tangible personal property
30 which is purchased at retail from a retailer, and which is
31 titled or registered at a location within the corporate
32 limits of such home rule municipality with an agency of this
33 State's government, at a rate which is an increment of 1/4%
-30- LRB9011620KDksam
1 and based on the selling price of such tangible personal
2 property, as "selling price" is defined in the Use Tax Act.
3 In home rule municipalities with less than 2,000,000
4 inhabitants, the tax shall be collected by the municipality
5 imposing the tax from persons whose Illinois address for
6 titling or registration purposes is given as being in such
7 municipality.
8 (b) In home rule municipalities with 2,000,000 or more
9 inhabitants, the corporate authorities of the municipality
10 may additionally impose a tax beginning July 1, 1991 upon the
11 privilege of using in the municipality, any item of tangible
12 personal property, other than tangible personal property
13 titled or registered with an agency of the State's
14 government, that is purchased at retail from a retailer
15 located outside the corporate limits of the municipality, at
16 a rate that is an increment of 1/4% not to exceed 1% and
17 based on the selling price of the tangible personal property,
18 as "selling price" is defined in the Use Tax Act. Such tax
19 shall be collected from the purchaser by the municipality
20 imposing such tax.
21 To prevent multiple home rule taxation, the use in a home
22 rule municipality of tangible personal property that is
23 acquired outside the municipality and caused to be brought
24 into the municipality by a person who has already paid a home
25 rule municipal tax in another municipality in respect to the
26 sale, purchase, or use of that property, shall be exempt to
27 the extent of the amount of the tax properly due and paid in
28 the other home rule municipality.
29 (c) If a municipality having 2,000,000 or more
30 inhabitants imposes the tax authorized by subsection (a),
31 then the tax shall be collected by the Illinois Department of
32 Revenue when the property is purchased at retail from a
33 retailer in the county in which the home rule municipality
34 imposing the tax is located, and in all contiguous counties.
-31- LRB9011620KDksam
1 The tax shall be remitted to the State, or an exemption
2 determination must be obtained from the Department before the
3 title or certificate of registration for the property may be
4 issued. The tax or proof of exemption may be transmitted to
5 the Department by way of the State agency with which, or
6 State officer with whom, the tangible personal property must
7 be titled or registered if the Department and that agency or
8 State officer determine that this procedure will expedite the
9 processing of applications for title or registration.
10 The Department shall have full power to administer and
11 enforce this Section to collect all taxes, penalties and
12 interest due hereunder, to dispose of taxes, penalties and
13 interest so collected in the manner hereinafter provided, and
14 determine all rights to credit memoranda or refunds arising
15 on account of the erroneous payment of tax, penalty or
16 interest hereunder. In the administration of and compliance
17 with this Section the Department and persons who are subject
18 to this Section shall have the same rights, remedies,
19 privileges, immunities, powers and duties, and be subject to
20 the same conditions, restrictions, limitations, penalties and
21 definitions of terms, and employ the same modes of procedure
22 as are prescribed in Sections 2 (except the definition of
23 "retailer maintaining a place of business in this State"), 3
24 (except provisions pertaining to the State rate of tax, and
25 except provisions concerning collection or refunding of the
26 tax by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22
27 of the Use Tax Act, which are not inconsistent with this
28 Section, as fully as if provisions contained in those
29 Sections of the Use Tax Act were set forth herein.
30 Whenever the Department determines that a refund shall be
31 made under this Section to a claimant instead of issuing a
32 credit memorandum, the Department shall notify the State
33 Comptroller, who shall cause the order to be drawn for the
34 amount specified, and to the person named, in such
-32- LRB9011620KDksam
1 notification from the Department. Such refund shall be paid
2 by the State Treasurer out of the home rule municipal
3 retailers' occupation tax fund.
4 The Department shall forthwith pay over to the State
5 Treasurer, ex officio, as trustee, all taxes, penalties and
6 interest collected hereunder. On or before the 25th day of
7 each calendar month, the Department shall prepare and certify
8 to the State Comptroller the disbursement of stated sums of
9 money to named municipalities, the municipality in each
10 instance to be that municipality from which the Department
11 during the second preceding calendar month, collected
12 municipal use tax from any person whose Illinois address for
13 titling or registration purposes is given as being in such
14 municipality. The amount to be paid to each municipality
15 shall be the amount (not including credit memoranda)
16 collected hereunder during the second preceding calendar
17 month by the Department, and not including an amount equal to
18 the amount of refunds made during the second preceding
19 calendar month by the Department on behalf of such
20 municipality, less the amount expended during the second
21 preceding month by the Department to be paid from the
22 appropriation to the Department from the Home Rule Municipal
23 Retailers' Occupation Tax Trust Fund. The appropriation to
24 cover the costs incurred by the Department in administering
25 and enforcing this Section shall not exceed 2% of the amount
26 estimated to be deposited into the Home Rule Municipal
27 Retailers' Occupation Tax Trust Fund during the fiscal year
28 for which the appropriation is made. Within 10 days after
29 receipt by the State Comptroller of the disbursement
30 certification to the municipalities provided for in this
31 Section to be given to the State Comptroller by the
32 Department, the State Comptroller shall cause the orders to
33 be drawn for the respective amounts in accordance with the
34 directions contained in that certification.
-33- LRB9011620KDksam
1 Any ordinance imposing or discontinuing any tax to be
2 collected and enforced by the Department under this Section
3 shall be adopted and a certified copy thereof filed with the
4 Department on or before October 1, whereupon the Department
5 of Revenue shall proceed to administer and enforce this
6 Section on behalf of the municipalities as of January 1 next
7 following such adoption and filing. Beginning April 1, 1998,
8 any ordinance imposing or discontinuing any tax to be
9 collected and enforced by the Department under this Section
10 shall either (i) be adopted and a certified copy thereof
11 filed with the Department on or before April 1, whereupon the
12 Department of Revenue shall proceed to administer and enforce
13 this Section on behalf of the municipalities as of July 1
14 next following the adoption and filing; or (ii) be adopted
15 and a certified copy thereof filed with the Department on or
16 before October 1, whereupon the Department of Revenue shall
17 proceed to administer and enforce this Section on behalf of
18 the municipalities as of January 1 next following the
19 adoption and filing.
20 Nothing in this subsection (c) shall prevent a home rule
21 municipality from collecting the tax pursuant to subsection
22 (a) in any situation where such tax is not collected by the
23 Department of Revenue under this subsection (c).
24 (d) Any unobligated balance remaining in the Municipal
25 Retailers' Occupation Tax Fund on December 31, 1989, which
26 fund was abolished by Public Act 85-1135, and all receipts of
27 municipal tax as a result of audits of liability periods
28 prior to January 1, 1990, shall be paid into the Local
29 Government Tax Fund, for distribution as provided by this
30 Section prior to the enactment of Public Act 85-1135. All
31 receipts of municipal tax as a result of an assessment not
32 arising from an audit, for liability periods prior to January
33 1, 1990, shall be paid into the Local Government Tax Fund for
34 distribution before July 1, 1990, as provided by this Section
-34- LRB9011620KDksam
1 prior to the enactment of Public Act 85-1135, and on and
2 after July 1, 1990, all such receipts shall be distributed as
3 provided in Section 6z-18 of the State Finance Act.
4 (e) As used in this Section, "Municipal" and
5 "Municipality" means a city, village or incorporated town,
6 including an incorporated town which has superseded a civil
7 township.
8 (f) This Section shall be known and may be cited as the
9 "Home Rule Municipal Use Tax Act".
10 (Source: P.A. 90-562, eff. 12-16-97.)
11 Section 99. Effective date. This Act takes effect upon
12 becoming law.".