102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0865

 

Introduced 2/10/2021, by Rep. Anthony DeLuca

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-11-1.1  from Ch. 24, par. 8-11-1.1
65 ILCS 5/8-11-1.2  from Ch. 24, par. 8-11-1.2
65 ILCS 5/8-11-1.3  from Ch. 24, par. 8-11-1.3
65 ILCS 5/8-11-1.4  from Ch. 24, par. 8-11-1.4
65 ILCS 5/8-11-1.5  from Ch. 24, par. 8-11-1.5

    Amends the Illinois Municipal Code. Provides that the rate of tax under the Non-Home Rule Municipal Retailers' Occupation Tax Act, the Non-Home Rule Municipal Service Occupation Tax Act, and the Non-Home Rule Municipal Use Tax Act may not exceed 2% (currently, 1%). Provides that the rate of tax that may be imposed for municipal operations may not exceed 1%. With respect to the Non-Home Rule Municipal Retailers' Occupation Tax Act, the Non-Home Rule Municipal Service Occupation Tax Act, and the Non-Home Rule Municipal Use Tax Act, provides that the term "public infrastructure" includes the acquisition, repair, and maintenance of public safety equipment. Effective immediately.


LRB102 03583 AWJ 13596 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0865LRB102 03583 AWJ 13596 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Sections 8-11-1.1, 8-11-1.2, 8-11-1.3, 8-11-1.4, and
68-11-1.5 as follows:
 
7    (65 ILCS 5/8-11-1.1)  (from Ch. 24, par. 8-11-1.1)
8    Sec. 8-11-1.1. Non-home rule municipalities; imposition of
9taxes.
10    (a) The corporate authorities of a non-home rule
11municipality may, upon approval of the electors of the
12municipality pursuant to subsection (b) of this Section,
13impose by ordinance or resolution the tax authorized in
14Sections 8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act.
15    (b) The corporate authorities of the municipality may by
16ordinance or resolution call for the submission to the
17electors of the municipality the question of whether the
18municipality shall impose such tax or increase the rate of
19such tax. Such question shall be certified by the municipal
20clerk to the election authority in accordance with Section
2128-5 of the Election Code and shall be in a form in accordance
22with Section 16-7 of the Election Code.
23    Notwithstanding any provision of law to the contrary, if

 

 

HB0865- 2 -LRB102 03583 AWJ 13596 b

1the proceeds of the tax may be used for municipal operations
2pursuant to Section 8-11-1.3, 8-11-1.4, or 8-11-1.5, then the
3election authority must submit the question in substantially
4the following form:
5        Shall the corporate authorities of the municipality be
6    authorized to levy a tax at a rate of (rate)% for
7    expenditures on municipal operations, expenditures on
8    public infrastructure, or property tax relief?
9    If a majority of the electors in the municipality voting
10upon the question vote in the affirmative, such tax shall be
11imposed.
12    Until January 1, 1992, an ordinance or resolution imposing
13the tax of not more than 1% hereunder or discontinuing the same
14shall be adopted and a certified copy thereof, together with a
15certification that the ordinance or resolution received
16referendum approval in the case of the imposition of such tax,
17filed with the Department of Revenue, on or before the first
18day of June, whereupon the Department shall proceed to
19administer and enforce the additional tax or to discontinue
20the tax, as the case may be, as of the first day of September
21next following such adoption and filing.
22    Beginning January 1, 1992 and through December 31, 1992,
23an ordinance or resolution imposing or discontinuing the tax
24hereunder shall be adopted and a certified copy thereof filed
25with the Department on or before the first day of July,
26whereupon the Department shall proceed to administer and

 

 

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1enforce this Section as of the first day of October next
2following such adoption and filing.
3    Beginning January 1, 1993, and through September 30, 2002,
4an ordinance or resolution imposing or discontinuing the tax
5hereunder shall be adopted and a certified copy thereof filed
6with the Department on or before the first day of October,
7whereupon the Department shall proceed to administer and
8enforce this Section as of the first day of January next
9following such adoption and filing.
10    Beginning October 1, 2002, and through December 31, 2013,
11an ordinance or resolution imposing or discontinuing the tax
12under this Section or effecting a change in the rate of tax
13must either (i) be adopted and a certified copy of the
14ordinance or resolution filed with the Department on or before
15the first day of April, whereupon the Department shall proceed
16to administer and enforce this Section as of the first day of
17July next following the adoption and filing; or (ii) be
18adopted and a certified copy of the ordinance or resolution
19filed with the Department on or before the first day of
20October, whereupon the Department shall proceed to administer
21and enforce this Section as of the first day of January next
22following the adoption and filing.
23    Beginning January 1, 2014, if an ordinance or resolution
24imposing the tax under this Section, discontinuing the tax
25under this Section, or effecting a change in the rate of tax
26under this Section is adopted, a certified copy thereof,

 

 

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1together with a certification that the ordinance or resolution
2received referendum approval in the case of the imposition of
3or increase in the rate of such tax, shall be filed with the
4Department of Revenue, either (i) on or before the first day of
5May, whereupon the Department shall proceed to administer and
6enforce this Section as of the first day of July next following
7the adoption and filing; or (ii) on or before the first day of
8October, whereupon the Department shall proceed to administer
9and enforce this Section as of the first day of January next
10following the adoption and filing.
11    Notwithstanding any provision in this Section to the
12contrary, if, in a non-home rule municipality with more than
13150,000 but fewer than 200,000 inhabitants, as determined by
14the last preceding federal decennial census, an ordinance or
15resolution under this Section imposes or discontinues a tax or
16changes the tax rate as of July 1, 2007, then that ordinance or
17resolution, together with a certification that the ordinance
18or resolution received referendum approval in the case of the
19imposition of the tax, must be adopted and a certified copy of
20that ordinance or resolution must be filed with the Department
21on or before May 15, 2007, whereupon the Department shall
22proceed to administer and enforce this Section as of July 1,
232007.
24    Notwithstanding any provision in this Section to the
25contrary, if, in a non-home rule municipality with more than
266,500 but fewer than 7,000 inhabitants, as determined by the

 

 

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1last preceding federal decennial census, an ordinance or
2resolution under this Section imposes or discontinues a tax or
3changes the tax rate on or before May 20, 2009, then that
4ordinance or resolution, together with a certification that
5the ordinance or resolution received referendum approval in
6the case of the imposition of the tax, must be adopted and a
7certified copy of that ordinance or resolution must be filed
8with the Department on or before May 20, 2009, whereupon the
9Department shall proceed to administer and enforce this
10Section as of July 1, 2009.
11    A non-home rule municipality may file a certified copy of
12an ordinance or resolution, with a certification that the
13ordinance or resolution received referendum approval in the
14case of the imposition of the tax, with the Department of
15Revenue, as required under this Section, only after October 2,
162000.
17    The tax authorized by this Section may not be more than 2%
181% and may be imposed only in 1/4% increments. It is the intent
19of the General Assembly that the rate of tax that may be
20imposed for municipal operations may not exceed 1%; therefore,
21notwithstanding any other provision of law, if the tax under
22this Section is imposed at a rate of more than 1%, then,
23beginning with the first disbursement to occur on or after the
24effective date of the increase, the total amount that may be
25used for municipal operations may not exceed the total amount
26of the proceeds disbursed to the municipality under Sections

 

 

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18-11-1.3, 8-11-1.4, and 8-11-1.5, multiplied by a fraction
2having a numerator of 1 and a denominator of the rate of tax.
3(Source: P.A. 98-584, eff. 8-27-13.)
 
4    (65 ILCS 5/8-11-1.2)  (from Ch. 24, par. 8-11-1.2)
5    Sec. 8-11-1.2. Definition. As used in Sections 8-11-1.3,
68-11-1.4 and 8-11-1.5 of this Act:
7    (a) "Public infrastructure" means municipal roads and
8streets, access roads, bridges, and sidewalks; waste disposal
9systems; the acquisition, repair, and maintenance of public
10safety equipment; and water and sewer line extensions, water
11distribution and purification facilities, storm water drainage
12and retention facilities, and sewage treatment facilities. For
13purposes of referenda authorizing the imposition of taxes by
14the City of DuQuoin under Sections 8-11-1.3, 8-11-1.4, and
158-11-1.5 of this Act that are approved in November, 2002, or
16for purposes of referenda authorizing the imposition of taxes
17by the Village of Forsyth under Sections 8-11-1.3, 8-11-1.4,
18and 8-11-1.5 of this Act that are approved after the effective
19date of this amendatory Act of the 94th General Assembly,
20"public infrastructure" shall also include public schools.
21    (a-5) For the purposes of this Section, "public safety
22equipment" means firefighting, police, rescue, transportation,
23or communications equipment used by police departments, fire
24departments, or other first responders, including, but not
25limited to, police vehicles, fire trucks, surveillance

 

 

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1equipment, and body cameras.
2    (b) "Property tax relief" means the action of a
3municipality to reduce the levy for real estate taxes or avoid
4an increase in the levy for real estate taxes that would
5otherwise have been required. Property tax relief or the
6avoidance of property tax must uniformly apply to all classes
7of property.
8(Source: P.A. 94-1078, eff. 1-9-07; 95-331, eff. 8-21-07.)
 
9    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
10    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
11Occupation Tax Act. The corporate authorities of a non-home
12rule municipality may impose a tax upon all persons engaged in
13the business of selling tangible personal property, other than
14on an item of tangible personal property which is titled and
15registered by an agency of this State's Government, at retail
16in the municipality for expenditure on public infrastructure
17or for property tax relief or both as defined in Section
188-11-1.2 if approved by referendum as provided in Section
198-11-1.1, of the gross receipts from such sales made in the
20course of such business. If the tax is approved by referendum
21on or after July 14, 2010 (the effective date of Public Act
2296-1057), the corporate authorities of a non-home rule
23municipality may, until July 1, 2030, use the proceeds of the
24tax for expenditure on municipal operations, in addition to or
25in lieu of any expenditure on public infrastructure or for

 

 

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1property tax relief. The tax imposed may not be more than 2% 1%
2and may be imposed only in 1/4% increments. It is the intent of
3the General Assembly that the rate of tax that may be imposed
4for municipal operations may not exceed 1%; therefore,
5notwithstanding any other provision of law, if the tax under
6this Section is imposed at a rate of more than 1%, then,
7beginning with the first disbursement to occur on or after the
8effective date of the increase, the total amount that may be
9used for municipal operations may not exceed the total amount
10of the proceeds disbursed to the municipality under this
11Section, Section 8-11-1.4, and Section 8-11-1.5, multiplied by
12a fraction having a numerator of 1 and a denominator of the
13rate of tax. The tax may not be imposed on tangible personal
14property taxed at the 1% rate under the Retailers' Occupation
15Tax Act. Beginning December 1, 2019, this tax is not imposed on
16sales of aviation fuel unless the tax revenue is expended for
17airport-related purposes. If a municipality does not have an
18airport-related purpose to which it dedicates aviation fuel
19tax revenue, then aviation fuel is excluded from the tax. Each
20municipality must comply with the certification requirements
21for airport-related purposes under Section 2-22 of the
22Retailers' Occupation Tax Act. For purposes of this Section,
23"airport-related purposes" has the meaning ascribed in Section
246z-20.2 of the State Finance Act. This exclusion for aviation
25fuel only applies for so long as the revenue use requirements
26of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the

 

 

HB0865- 9 -LRB102 03583 AWJ 13596 b

1municipality. The tax imposed by a municipality pursuant to
2this Section and all civil penalties that may be assessed as an
3incident thereof shall be collected and enforced by the State
4Department of Revenue. The certificate of registration which
5is issued by the Department to a retailer under the Retailers'
6Occupation Tax Act shall permit such retailer to engage in a
7business which is taxable under any ordinance or resolution
8enacted pursuant to this Section without registering
9separately with the Department under such ordinance or
10resolution or under this Section. The Department shall have
11full power to administer and enforce this Section; to collect
12all taxes and penalties due hereunder; to dispose of taxes and
13penalties so collected in the manner hereinafter provided, and
14to determine all rights to credit memoranda, arising on
15account of the erroneous payment of tax or penalty hereunder.
16In the administration of, and compliance with, this Section,
17the Department and persons who are subject to this Section
18shall have the same rights, remedies, privileges, immunities,
19powers and duties, and be subject to the same conditions,
20restrictions, limitations, penalties and definitions of terms,
21and employ the same modes of procedure, as are prescribed in
22Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in
23respect to all provisions therein other than the State rate of
24tax), 2c, 3 (except as to the disposition of taxes and
25penalties collected, and except that the retailer's discount
26is not allowed for taxes paid on aviation fuel that are subject

 

 

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1to the revenue use requirements of 49 U.S.C. 47107(b) and 49
2U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
35k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
4Retailers' Occupation Tax Act and Section 3-7 of the Uniform
5Penalty and Interest Act as fully as if those provisions were
6set forth herein.
7    No municipality may impose a tax under this Section unless
8the municipality also imposes a tax at the same rate under
9Section 8-11-1.4 of this Code.
10    Persons subject to any tax imposed pursuant to the
11authority granted in this Section may reimburse themselves for
12their seller's tax liability hereunder by separately stating
13such tax as an additional charge, which charge may be stated in
14combination, in a single amount, with State tax which sellers
15are required to collect under the Use Tax Act, pursuant to such
16bracket schedules as the Department may prescribe.
17    Whenever the Department determines that a refund should be
18made under this Section to a claimant instead of issuing a
19credit memorandum, the Department shall notify the State
20Comptroller, who shall cause the order to be drawn for the
21amount specified, and to the person named, in such
22notification from the Department. Such refund shall be paid by
23the State Treasurer out of the non-home rule municipal
24retailers' occupation tax fund or the Local Government
25Aviation Trust Fund, as appropriate.
26    Except as otherwise provided, the Department shall

 

 

HB0865- 11 -LRB102 03583 AWJ 13596 b

1forthwith pay over to the State Treasurer, ex officio, as
2trustee, all taxes and penalties collected hereunder for
3deposit into the Non-Home Rule Municipal Retailers' Occupation
4Tax Fund. Taxes and penalties collected on aviation fuel sold
5on or after December 1, 2019, shall be immediately paid over by
6the Department to the State Treasurer, ex officio, as trustee,
7for deposit into the Local Government Aviation Trust Fund. The
8Department shall only pay moneys into the Local Government
9Aviation Trust Fund under this Section for so long as the
10revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1147133 are binding on the municipality.
12    As soon as possible after the first day of each month,
13beginning January 1, 2011, upon certification of the
14Department of Revenue, the Comptroller shall order
15transferred, and the Treasurer shall transfer, to the STAR
16Bonds Revenue Fund the local sales tax increment, as defined
17in the Innovation Development and Economy Act, collected under
18this Section during the second preceding calendar month for
19sales within a STAR bond district.
20    After the monthly transfer to the STAR Bonds Revenue Fund,
21on or before the 25th day of each calendar month, the
22Department shall prepare and certify to the Comptroller the
23disbursement of stated sums of money to named municipalities,
24the municipalities to be those from which retailers have paid
25taxes or penalties hereunder to the Department during the
26second preceding calendar month. The amount to be paid to each

 

 

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1municipality shall be the amount (not including credit
2memoranda and not including taxes and penalties collected on
3aviation fuel sold on or after December 1, 2019) collected
4hereunder during the second preceding calendar month by the
5Department plus an amount the Department determines is
6necessary to offset any amounts which were erroneously paid to
7a different taxing body, and not including an amount equal to
8the amount of refunds made during the second preceding
9calendar month by the Department on behalf of such
10municipality, and not including any amount which the
11Department determines is necessary to offset any amounts which
12were payable to a different taxing body but were erroneously
13paid to the municipality, and not including any amounts that
14are transferred to the STAR Bonds Revenue Fund, less 1.5% of
15the remainder, which the Department shall transfer into the
16Tax Compliance and Administration Fund. The Department, at the
17time of each monthly disbursement to the municipalities, shall
18prepare and certify to the State Comptroller the amount to be
19transferred into the Tax Compliance and Administration Fund
20under this Section. Within 10 days after receipt, by the
21Comptroller, of the disbursement certification to the
22municipalities and the Tax Compliance and Administration Fund
23provided for in this Section to be given to the Comptroller by
24the Department, the Comptroller shall cause the orders to be
25drawn for the respective amounts in accordance with the
26directions contained in such certification.

 

 

HB0865- 13 -LRB102 03583 AWJ 13596 b

1    For the purpose of determining the local governmental unit
2whose tax is applicable, a retail sale, by a producer of coal
3or other mineral mined in Illinois, is a sale at retail at the
4place where the coal or other mineral mined in Illinois is
5extracted from the earth. This paragraph does not apply to
6coal or other mineral when it is delivered or shipped by the
7seller to the purchaser at a point outside Illinois so that the
8sale is exempt under the Federal Constitution as a sale in
9interstate or foreign commerce.
10    Nothing in this Section shall be construed to authorize a
11municipality to impose a tax upon the privilege of engaging in
12any business which under the constitution of the United States
13may not be made the subject of taxation by this State.
14    When certifying the amount of a monthly disbursement to a
15municipality under this Section, the Department shall increase
16or decrease such amount by an amount necessary to offset any
17misallocation of previous disbursements. The offset amount
18shall be the amount erroneously disbursed within the previous
196 months from the time a misallocation is discovered.
20    The Department of Revenue shall implement Public Act
2191-649 so as to collect the tax on and after January 1, 2002.
22    As used in this Section, "municipal" and "municipality"
23mean a city, village, or incorporated town, including an
24incorporated town which has superseded a civil township.
25    This Section shall be known and may be cited as the
26Non-Home Rule Municipal Retailers' Occupation Tax Act.

 

 

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1(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
2100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-47, eff.
31-1-20; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19.)
 
4    (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)
5    Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
6Tax Act. The corporate authorities of a non-home rule
7municipality may impose a tax upon all persons engaged, in
8such municipality, in the business of making sales of service
9for expenditure on public infrastructure or for property tax
10relief or both as defined in Section 8-11-1.2 if approved by
11referendum as provided in Section 8-11-1.1, of the selling
12price of all tangible personal property transferred by such
13servicemen either in the form of tangible personal property or
14in the form of real estate as an incident to a sale of service.
15If the tax is approved by referendum on or after July 14, 2010
16(the effective date of Public Act 96-1057), the corporate
17authorities of a non-home rule municipality may, until
18December 31, 2020, use the proceeds of the tax for expenditure
19on municipal operations, in addition to or in lieu of any
20expenditure on public infrastructure or for property tax
21relief. The tax imposed may not be more than 2% 1% and may be
22imposed only in 1/4% increments. It is the intent of the
23General Assembly that the rate of tax that may be imposed for
24municipal operations may not exceed 1%; therefore,
25notwithstanding any other provision of law, if the tax under

 

 

HB0865- 15 -LRB102 03583 AWJ 13596 b

1this Section is imposed at a rate of more than 1%, then,
2beginning with the first disbursement to occur on or after the
3effective date of the increase, the total amount that may be
4used for municipal operations may not exceed the total amount
5of the proceeds disbursed to the municipality under this
6Section, Section 8-11-1.3, and Section 8-11-1.5, multiplied by
7a fraction having a numerator of 1 and a denominator of the
8rate of tax. The tax may not be imposed on tangible personal
9property taxed at the 1% rate under the Service Occupation Tax
10Act. Beginning December 1, 2019, this tax is not imposed on
11sales of aviation fuel unless the tax revenue is expended for
12airport-related purposes. If a municipality does not have an
13airport-related purpose to which it dedicates aviation fuel
14tax revenue, then aviation fuel is excluded from the tax. Each
15municipality must comply with the certification requirements
16for airport-related purposes under Section 2-22 of the
17Retailers' Occupation Tax Act. For purposes of this Section,
18"airport-related purposes" has the meaning ascribed in Section
196z-20.2 of the State Finance Act. This exclusion for aviation
20fuel only applies for so long as the revenue use requirements
21of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
22municipality. The tax imposed by a municipality pursuant to
23this Section and all civil penalties that may be assessed as an
24incident thereof shall be collected and enforced by the State
25Department of Revenue. The certificate of registration which
26is issued by the Department to a retailer under the Retailers'

 

 

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1Occupation Tax Act or under the Service Occupation Tax Act
2shall permit such registrant to engage in a business which is
3taxable under any ordinance or resolution enacted pursuant to
4this Section without registering separately with the
5Department under such ordinance or resolution or under this
6Section. The Department shall have full power to administer
7and enforce this Section; to collect all taxes and penalties
8due hereunder; to dispose of taxes and penalties so collected
9in the manner hereinafter provided, and to determine all
10rights to credit memoranda arising on account of the erroneous
11payment of tax or penalty hereunder. In the administration of,
12and compliance with, this Section the Department and persons
13who are subject to this Section shall have the same rights,
14remedies, privileges, immunities, powers and duties, and be
15subject to the same conditions, restrictions, limitations,
16penalties and definitions of terms, and employ the same modes
17of procedure, as are prescribed in Sections 1a-1, 2, 2a, 3
18through 3-50 (in respect to all provisions therein other than
19the State rate of tax), 4 (except that the reference to the
20State shall be to the taxing municipality), 5, 7, 8 (except
21that the jurisdiction to which the tax shall be a debt to the
22extent indicated in that Section 8 shall be the taxing
23municipality), 9 (except as to the disposition of taxes and
24penalties collected, and except that the returned merchandise
25credit for this municipal tax may not be taken against any
26State tax, and except that the retailer's discount is not

 

 

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1allowed for taxes paid on aviation fuel that are subject to the
2revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
347133), 10, 11, 12 (except the reference therein to Section 2b
4of the Retailers' Occupation Tax Act), 13 (except that any
5reference to the State shall mean the taxing municipality),
6the first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
7Service Occupation Tax Act and Section 3-7 of the Uniform
8Penalty and Interest Act, as fully as if those provisions were
9set forth herein.
10    No municipality may impose a tax under this Section unless
11the municipality also imposes a tax at the same rate under
12Section 8-11-1.3 of this Code.
13    Persons subject to any tax imposed pursuant to the
14authority granted in this Section may reimburse themselves for
15their serviceman's tax liability hereunder by separately
16stating such tax as an additional charge, which charge may be
17stated in combination, in a single amount, with State tax
18which servicemen are authorized to collect under the Service
19Use Tax Act, pursuant to such bracket schedules as the
20Department may prescribe.
21    Whenever the Department determines that a refund should be
22made under this Section to a claimant instead of issuing
23credit memorandum, the Department shall notify the State
24Comptroller, who shall cause the order to be drawn for the
25amount specified, and to the person named, in such
26notification from the Department. Such refund shall be paid by

 

 

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1the State Treasurer out of the municipal retailers' occupation
2tax fund or the Local Government Aviation Trust Fund, as
3appropriate.
4    Except as otherwise provided in this paragraph, the
5Department shall forthwith pay over to the State Treasurer, ex
6officio, as trustee, all taxes and penalties collected
7hereunder for deposit into the municipal retailers' occupation
8tax fund. Taxes and penalties collected on aviation fuel sold
9on or after December 1, 2019, shall be immediately paid over by
10the Department to the State Treasurer, ex officio, as trustee,
11for deposit into the Local Government Aviation Trust Fund. The
12Department shall only pay moneys into the Local Government
13Aviation Trust Fund under this Section for so long as the
14revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1547133 are binding on the municipality.
16    As soon as possible after the first day of each month,
17beginning January 1, 2011, upon certification of the
18Department of Revenue, the Comptroller shall order
19transferred, and the Treasurer shall transfer, to the STAR
20Bonds Revenue Fund the local sales tax increment, as defined
21in the Innovation Development and Economy Act, collected under
22this Section during the second preceding calendar month for
23sales within a STAR bond district.
24    After the monthly transfer to the STAR Bonds Revenue Fund,
25on or before the 25th day of each calendar month, the
26Department shall prepare and certify to the Comptroller the

 

 

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1disbursement of stated sums of money to named municipalities,
2the municipalities to be those from which suppliers and
3servicemen have paid taxes or penalties hereunder to the
4Department during the second preceding calendar month. The
5amount to be paid to each municipality shall be the amount (not
6including credit memoranda and not including taxes and
7penalties collected on aviation fuel sold on or after December
81, 2019) collected hereunder during the second preceding
9calendar month by the Department, and not including an amount
10equal to the amount of refunds made during the second
11preceding calendar month by the Department on behalf of such
12municipality, and not including any amounts that are
13transferred to the STAR Bonds Revenue Fund, less 1.5% of the
14remainder, which the Department shall transfer into the Tax
15Compliance and Administration Fund. The Department, at the
16time of each monthly disbursement to the municipalities, shall
17prepare and certify to the State Comptroller the amount to be
18transferred into the Tax Compliance and Administration Fund
19under this Section. Within 10 days after receipt, by the
20Comptroller, of the disbursement certification to the
21municipalities, the General Revenue Fund, and the Tax
22Compliance and Administration Fund provided for in this
23Section to be given to the Comptroller by the Department, the
24Comptroller shall cause the orders to be drawn for the
25respective amounts in accordance with the directions contained
26in such certification.

 

 

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1    The Department of Revenue shall implement Public Act
291-649 so as to collect the tax on and after January 1, 2002.
3    Nothing in this Section shall be construed to authorize a
4municipality to impose a tax upon the privilege of engaging in
5any business which under the constitution of the United States
6may not be made the subject of taxation by this State.
7    As used in this Section, "municipal" or "municipality"
8means or refers to a city, village or incorporated town,
9including an incorporated town which has superseded a civil
10township.
11    This Section shall be known and may be cited as the
12"Non-Home Rule Municipal Service Occupation Tax Act".
13(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
14100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
157-12-19; 101-604, eff. 12-13-19.)
 
16    (65 ILCS 5/8-11-1.5)  (from Ch. 24, par. 8-11-1.5)
17    Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The
18corporate authorities of a non-home rule municipality may
19impose a tax upon the privilege of using, in such
20municipality, any item of tangible personal property which is
21purchased at retail from a retailer, and which is titled or
22registered with an agency of this State's government, based on
23the selling price of such tangible personal property, as
24"selling price" is defined in the Use Tax Act, for expenditure
25on public infrastructure or for property tax relief or both as

 

 

HB0865- 21 -LRB102 03583 AWJ 13596 b

1defined in Section 8-11-1.2, if approved by referendum as
2provided in Section 8-11-1.1. If the tax is approved by
3referendum on or after the effective date of this amendatory
4Act of the 96th General Assembly, the corporate authorities of
5a non-home rule municipality may, until December 31, 2020, use
6the proceeds of the tax for expenditure on municipal
7operations, in addition to or in lieu of any expenditure on
8public infrastructure or for property tax relief. The tax
9imposed may not be more than 2% 1% and may be imposed only in
101/4% increments. It is the intent of the General Assembly that
11the rate of tax that may be imposed for municipal operations
12may not exceed 1%; therefore, notwithstanding any other
13provision of law, if the tax under this Section is imposed at a
14rate of more than 1%, then, beginning with the first
15disbursement to occur on or after the effective date of the
16increase, the total amount that may be used for municipal
17operations may not exceed the total amount of the proceeds
18disbursed to the municipality under this Section, Section
198-11-1.3, and Section 8-11-1.4, multiplied by a fraction
20having a numerator of 1 and a denominator of the rate of tax.
21Such tax shall be collected from persons whose Illinois
22address for title or registration purposes is given as being
23in such municipality. Such tax shall be collected by the
24municipality imposing such tax. A non-home rule municipality
25may not impose and collect the tax prior to January 1, 2002.
26    This Section shall be known and may be cited as the

 

 

HB0865- 22 -LRB102 03583 AWJ 13596 b

1"Non-Home Rule Municipal Use Tax Act".
2(Source: P.A. 96-1057, eff. 7-14-10; 97-837, eff. 7-20-12.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.