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92nd General Assembly

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Public Act 92-0739

SB2037 Enrolled                               LRB9212648BDdvA

    AN ACT concerning municipalities.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.   The  Illinois  Municipal Code is amended by
changing Sections 8-11-1.1, 8-11-1.2, 8-11-1.3, 8-11-1.4, and
8-11-1.5 as follows:

    (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
    Sec. 8-11-1.1.  Non-home rule municipalities;  imposition
of taxes.
    (a)  The   corporate   authorities  of  a  non-home  rule
municipality may,  upon  approval  of  the  electors  of  the
municipality  pursuant  to  subsection  (b)  of this Section,
impose  by  ordinance  or  resolution  the  1/2  of  1%   tax
authorized  in  Sections  8-11-1.3,  8-11-1.4 and 8-11-1.5 of
this Act.
    (b)  The corporate authorities of the municipality may by
ordinance or  resolution  call  for  the  submission  to  the
electors  of  the  municipality   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 and shall
be in a form in accordance with Section 16-7 of the  Election
Code.
    If  a majority of the electors in the municipality voting
upon the question vote in the affirmative, such tax shall  be
imposed.
    An  ordinance  or resolution imposing the tax of not more
than 1/2 of 1% tax hereunder or discontinuing the same  shall
be  adopted  and  a  certified  copy thereof, together with a
certification  that  the  ordinance  or  resolution  received
referendum approval in the case of  the  imposition  of  such
tax,  filed  with the Department of Revenue, on or before the
first day of June, whereupon the Department shall proceed  to
administer  and  enforce the additional tax or to discontinue
the tax, as the case may be, as of the first day of September
next following such adoption and filing. Beginning January 1,
1992, an ordinance or resolution  imposing  or  discontinuing
the  tax  hereunder  shall  be  adopted  and a certified copy
thereof filed with the Department on or before the first  day
of July, whereupon the Department shall proceed to administer
and  enforce this Section as of the first day of October next
following such adoption  and  filing.  Beginning  January  1,
1993,  an  ordinance  or resolution imposing or discontinuing
the tax hereunder shall  be  adopted  and  a  certified  copy
thereof  filed with the Department on or before the first day
of  October,  whereupon  the  Department  shall  proceed   to
administer  and  enforce  this Section as of the first day of
January next following such adoption  and  filing.  Beginning
October  1,  2002,  an  ordinance  or  resolution imposing or
discontinuing the tax  under  this  Section  or  effecting  a
change  in  the  rate of tax must either (i) be adopted and a
certified copy of the ordinance or resolution 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
of the ordinance or resolution 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. A non-home rule municipality  may  file  a  certified
copy of an ordinance or resolution, with a certification that
the  ordinance  or resolution received referendum approval in
the case of the imposition of the tax, with the Department of
Revenue, as required under this Section, only  after  October
2, 2000.
    The  tax  authorized by this Section may not be more than
1/2 of 1% and may be imposed only in 1/4% increments.
(Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.)

    (65 ILCS 5/8-11-1.2) (from Ch. 24, par. 8-11-1.2)
    Sec.  8-11-1.2.   Definition.   As   used   in   Sections
8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act:,
    (a)  "Public  infrastructure"  means  municipal roads and
streets, access roads, bridges, and sidewalks; waste disposal
systems;  and  water  and  sewer   line   extensions,   water
distribution   and   purification   facilities,  storm  water
drainage  and  retention  facilities,  and  sewage  treatment
facilities.
    (b)  "Property  tax  relief"  means  the  action   of   a
municipality  to  reduce  the  levy  for real estate taxes or
avoid an increase in the levy  for  real  estate  taxes  that
would  otherwise  have been required.  Property tax relief or
the avoidance of property tax must  uniformly  apply  to  all
classes of property.
(Source: P.A. 91-51, eff. 6-30-99.)

    (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
    Sec.   8-11-1.3.  Non-Home   Rule   Municipal  Retailers'
Occupation Tax Act.  The corporate authorities of a  non-home
rule  municipality  may impose a tax upon all persons engaged
in the business of selling tangible personal property,  other
than on an item of tangible personal property which is titled
and  registered  by  an agency of this State's Government, at
retail in the municipality at the  rate  of  1/2  of  1%  for
expenditure  on  public  infrastructure  or  for property tax
relief or both as defined in Section 8-11-1.2 if approved  by
referendum  as  provided  in  Section  8-11-1.1, of the gross
receipts from such sales made in the course of such business.
The tax imposed may not be more than 1/2 of  1%  and  may  be
imposed  only  in 1/4% increments. The tax may not be imposed
on the sale of food for  human  consumption  that  is  to  be
consumed  off  the  premises  where  it  is  sold (other than
alcoholic beverages, soft drinks,  and  food  that  has  been
prepared  for  immediate  consumption)  and  prescription and
nonprescription medicines,  drugs,  medical  appliances,  and
insulin,  urine testing materials, syringes, and needles used
by diabetics. The tax imposed by a municipality  pursuant  to
this  Section and all civil penalties that may be assessed as
an incident thereof shall be collected and  enforced  by  the
State Department of Revenue.  The certificate of registration
which  is  issued  by  the Department to a retailer under the
Retailers' Occupation Tax Act shall permit such  retailer  to
engage  in a business which is taxable under any ordinance or
resolution  enacted  pursuant   to   this   Section   without
registering   separately   with  the  Department  under  such
ordinance  or  resolution  or  under   this   Section.    The
Department  shall  have  full power to administer and enforce
this  Section;  to  collect  all  taxes  and  penalties   due
hereunder;  to dispose of taxes and penalties so collected in
the manner hereinafter provided, and to determine all  rights
to  credit  memoranda,  arising  on  account of the erroneous
payment of tax or penalty hereunder.  In  the  administration
of,  and  compliance  with,  this Section, the Department and
persons who are subject to this Section shall have  the  same
rights,  remedies, privileges, immunities, powers and duties,
and  be  subject  to  the  same   conditions,   restrictions,
limitations,  penalties  and definitions of terms, and employ
the same modes of procedure, as are prescribed in Sections 1,
1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in  respect  to
all provisions therein other than the State rate of tax), 2c,
3  (except  as  to  the  disposition  of  taxes and penalties
collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
5l, 6, 6a, 6b, 6c, 7,  8,  9,  10,  11,  12  and  13  of  the
Retailers'  Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act as fully as if those provisions were
set forth herein.
    No municipality may  impose  a  tax  under  this  Section
unless  the  municipality also imposes a tax at the same rate
under Section 8-11-1.4 of this Code.
    Persons subject  to  any  tax  imposed  pursuant  to  the
authority  granted  in  this Section may reimburse themselves
for their seller's  tax  liability  hereunder  by  separately
stating such tax as an additional charge, which charge may be
stated  in  combination,  in  a single amount, with State tax
which sellers are required to collect under the Use Tax  Act,
pursuant  to  such  bracket  schedules  as the Department may
prescribe.
    Whenever the Department determines that a  refund  should
be made under this Section to a claimant instead of issuing a
credit  memorandum,  the  Department  shall  notify the State
Comptroller, who shall cause the order to be  drawn  for  the
amount   specified,   and   to  the  person  named,  in  such
notification from the Department.  Such refund shall be  paid
by  the  State  Treasurer  out of the non-home rule municipal
retailers' occupation tax fund.
    The Department shall forthwith  pay  over  to  the  State
Treasurer,  ex  officio,  as trustee, all taxes and penalties
collected hereunder.  On or  before  the  25th  day  of  each
calendar  month,  the Department shall prepare and certify to
the Comptroller the disbursement of stated sums of  money  to
named  municipalities,  the  municipalities  to be those from
which retailers have paid taxes or penalties hereunder to the
Department during the second preceding  calendar  month.  The
amount  to  be  paid to each municipality shall be the amount
(not including credit memoranda) collected  hereunder  during
the second preceding calendar month by the Department plus an
amount  the  Department determines is necessary to offset any
amounts which 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  which  the  Department  determines  is
necessary  to  offset  any  amounts  which  were payable to a
different taxing  body  but  were  erroneously  paid  to  the
municipality.   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 respective amounts in
accordance   with   the   directions   contained   in    such
certification.
    For  the  purpose  of  determining the local governmental
unit whose tax is applicable, a retail sale, by a producer of
coal or other mineral mined in Illinois, is a sale at  retail
at  the  place  where  the  coal  or  other  mineral mined in
Illinois is extracted from the earth.   This  paragraph  does
not  apply  to  coal or other mineral when it is delivered or
shipped by the seller to the purchaser  at  a  point  outside
Illinois  so  that  the  sale  is  exempt  under  the Federal
Constitution as a sale in interstate or foreign commerce.
    Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege  of  engaging
in  any  business  which under the constitution of the United
States may not be made the subject of taxation by this State.
    When certifying the amount of a monthly disbursement to a
municipality  under  this  Section,  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 shall implement this amendatory
Act  of the 91st General Assembly so as to collect the tax on
and after January 1, 2002.
    As used in this Section, "municipal"  and  "municipality"
means  a  city,  village  or  incorporated town, including an
incorporated town which has superseded a civil township.
    This Section shall be known  and  may  be  cited  as  the
"Non-Home Rule Municipal Retailers' Occupation Tax Act".
(Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.)

    (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
    Sec.    8-11-1.4.  Non-Home    Rule   Municipal   Service
Occupation Tax Act.  The corporate authorities of a  non-home
rule  municipality may impose a tax upon all persons engaged,
in such municipality, in the  business  of  making  sales  of
service  at  the  rate of 1/2 of 1% for expenditure on public
infrastructure or for property tax relief or both as  defined
in  Section 8-11-1.2 if approved by referendum as provided in
Section 8-11-1.1,  of  the  selling  price  of  all  tangible
personal  property  transferred  by such servicemen either in
the form of tangible personal property or in the form of real
estate as an incident to a sale of service. The  tax  imposed
may  not  be  more  than 1/2 of 1% and may be imposed only in
1/4% increments. The tax may not be imposed on  the  sale  of
food  for  human  consumption  that is to be consumed off the
premises where it is sold (other  than  alcoholic  beverages,
soft  drinks,  and  food that has been prepared for immediate
consumption) and prescription and nonprescription  medicines,
drugs,   medical   appliances,  and  insulin,  urine  testing
materials, syringes, and needles used by diabetics.  The  tax
imposed  by  a  municipality pursuant to this Section and all
civil penalties that may be assessed as an  incident  thereof
shall  be  collected  and enforced by the State Department of
Revenue. The certificate of registration which is  issued  by
the  Department to a retailer under the Retailers' Occupation
Tax Act or under the Service Occupation Tax Act shall  permit
such  registrant  to  engage  in  a business which is taxable
under any ordinance or resolution enacted  pursuant  to  this
Section  without  registering  separately with the Department
under such ordinance or resolution or under this Section. The
Department shall have full power to  administer  and  enforce
this   Section;  to  collect  all  taxes  and  penalties  due
hereunder; to dispose of taxes and penalties so collected  in
the  manner hereinafter provided, and to determine all rights
to credit memoranda  arising  on  account  of  the  erroneous
payment  of  tax  or penalty hereunder. In the administration
of, and compliance with,  this  Section  the  Department  and
persons  who  are subject to this Section shall have the same
rights, remedies, privileges, immunities, powers and  duties,
and   be   subject  to  the  same  conditions,  restrictions,
limitations, penalties and definitions of terms,  and  employ
the  same  modes  of procedure, as are prescribed in Sections
1a-1, 2, 2a, 3 through 3-50 (in  respect  to  all  provisions
therein other than the State rate of tax), 4 (except that the
reference  to the State shall be to the taxing municipality),
5, 7, 8 (except that the jurisdiction to which the tax  shall
be  a debt to the extent indicated in that Section 8 shall be
the taxing municipality), 9 (except as to the disposition  of
taxes  and  penalties collected, and except that the returned
merchandise credit for this municipal tax may  not  be  taken
against  any  State  tax),  10,  11, 12 (except the reference
therein to Section 2b of the Retailers' Occupation Tax  Act),
13  (except  that  any  reference to the State shall mean the
taxing municipality), the first paragraph of Section 15,  16,
17,  18,  19  and  20  of  the Service Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
    No municipality may  impose  a  tax  under  this  Section
unless  the  municipality also imposes a tax at the same rate
under Section 8-11-1.3 of this Code.
    Persons subject  to  any  tax  imposed  pursuant  to  the
authority  granted  in  this Section may reimburse themselves
for their serviceman's tax liability hereunder by  separately
stating such tax as an additional charge, which charge may be
stated  in  combination,  in  a single amount, with State tax
which servicemen are authorized to collect under the  Service
Use  Tax  Act,  pursuant  to  such  bracket  schedules as the
Department may prescribe.
    Whenever the Department determines that a  refund  should
be  made  under this Section to a claimant instead of issuing
credit memorandum, the  Department  shall  notify  the  State
Comptroller,  who  shall  cause the order to be drawn for the
amount  specified,  and  to  the  person   named,   in   such
notification  from  the Department. Such refund shall be paid
by the  State  Treasurer  out  of  the  municipal  retailers'
occupation tax fund.
    The  Department  shall  forthwith  pay  over to the State
Treasurer, ex officio, as trustee, all  taxes  and  penalties
collected  hereunder.  On  or  before  the  25th  day of each
calendar month, the Department shall prepare and  certify  to
the  Comptroller  the disbursement of stated sums of money to
named municipalities, the municipalities  to  be  those  from
which  suppliers  and servicemen have paid taxes or penalties
hereunder to  the  Department  during  the  second  preceding
calendar  month.  The  amount to be paid to each municipality
shall  be  the  amount  (not  including   credit   memoranda)
collected  hereunder  during  the  second  preceding calendar
month by the Department, and not including an amount equal to
the amount  of  refunds  made  during  the  second  preceding
calendar   month   by   the  Department  on  behalf  of  such
municipality.  Within  10  days   after   receipt,   by   the
Comptroller,   of   the  disbursement  certification  to  the
municipalities and the General Revenue Fund, provided for  in
this   Section   to  be  given  to  the  Comptroller  by  the
Department, the Comptroller shall  cause  the  orders  to  be
drawn  for  the  respective  amounts  in  accordance with the
directions contained in such certification.
    The Department of Revenue shall implement this amendatory
Act of the 91st General Assembly so as to collect the tax  on
and after January 1, 2002.
    Nothing in this Section shall be construed to authorize a
municipality  to  impose a tax upon the privilege of engaging
in any business which under the constitution  of  the  United
States may not be made the subject of taxation by this State.
    As  used  in  this Section, "municipal" or "municipality"
means or refers to a  city,  village  or  incorporated  town,
including  an  incorporated town which has superseded a civil
township.
    This Section shall be known  and  may  be  cited  as  the
"Non-Home Rule Municipal Service Occupation Tax Act".
(Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.)

    (65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5)
    Sec.  8-11-1.5.  Non-Home Rule Municipal Use Tax Act. The
corporate authorities of a  non-home  rule  municipality  may
impose   a   tax   upon  the  privilege  of  using,  in  such
municipality, any item of tangible personal property which is
purchased at retail from a retailer, and which is  titled  or
registered  with  an  agency of this State's government, at a
rate of 1/2 of 1% and based on  the  selling  price  of  such
tangible  personal property, as "selling price" is defined in
the Use Tax Act, for expenditure on public infrastructure  or
for  property  tax  relief  or  both  as  defined  in Section
8-11-1.2, if approved by referendum as  provided  in  Section
8-11-1.1.  The tax imposed may not be more than 1/2 of 1% and
may be imposed only in 1/4% increments.  Such  tax  shall  be
collected  from  persons  whose Illinois address for title or
registration purposes is given as being in such municipality.
Such tax shall be collected by the municipality imposing such
tax. A non-home rule municipality may not impose and  collect
the tax prior to January 1, 2002.
    This  Section  shall  be  known  and  may be cited as the
"Non-Home Rule Municipal Use Tax Act".
(Source: P.A. 91-649, eff. 1-1-00.)
    Passed in the General Assembly May 08, 2002.
    Approved July 25, 2002.
    Effective January 01, 2003.

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