102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5760

 

Introduced 11/16/2022, by Rep. Deb Conroy

 

SYNOPSIS AS INTRODUCED:
 
55 ILCS 5/5-1006.8
65 ILCS 5/8-11-23

    Amends the County Cannabis Retailers' Occupation Tax Law and Municipal Cannabis Retailers' Occupation Tax Law. Provides that a certified copy of an ordinance imposing, or ordinance or resolution changing or discontinuing, a tax under the specified Laws shall be filed with the Department of Revenue and proof of filing shall be maintained by the county or municipality for at least 5 years. Effective immediately.


LRB102 28000 AWJ 39799 b

 

 

A BILL FOR

 

HB5760LRB102 28000 AWJ 39799 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Counties Code is amended by changing
5Section 5-1006.8 as follows:
 
6    (55 ILCS 5/5-1006.8)
7    Sec. 5-1006.8. County Cannabis Retailers' Occupation Tax
8Law.
9    (a) This Section may be referred to as the County Cannabis
10Retailers' Occupation Tax Law. The corporate authorities of
11any county may, by ordinance, impose a tax upon all persons
12engaged in the business of selling cannabis, other than
13cannabis purchased under the Compassionate Use of Medical
14Cannabis Program Act, at retail in the county on the gross
15receipts from these sales made in the course of that business.
16A certified copy of an ordinance imposing, or ordinance or
17resolution changing or discontinuing, a tax under this Section
18shall be filed with the Department of Revenue and proof of
19filing shall be maintained by the county for at least 5 years.
20If imposed, the tax shall be imposed only in 0.25% increments.
21The tax rate may not exceed: (i) 3.75% of the gross receipts of
22sales made in unincorporated areas of the county; and (ii) 3%
23of the gross receipts of sales made in a municipality located

 

 

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1in the county. The tax imposed under this Section and all civil
2penalties that may be assessed as an incident of the tax shall
3be collected and enforced by the Department of Revenue. The
4Department of Revenue shall have full power to administer and
5enforce this Section; to collect all taxes and penalties due
6hereunder; to dispose of taxes and penalties so collected in
7the manner hereinafter provided; and to determine all rights
8to credit memoranda arising on account of the erroneous
9payment of tax or penalty under this Section. In the
10administration of and compliance with this Section, the
11Department of Revenue and persons who are subject to this
12Section shall have the same rights, remedies, privileges,
13immunities, powers and duties, and be subject to the same
14conditions, restrictions, limitations, penalties, and
15definitions of terms, and employ the same modes of procedure,
16as are described in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
171n, 2 through 2-65 (in respect to all provisions therein other
18than the State rate of tax), 2a, 2b, 2c, 2i, 3 (except as to
19the disposition of taxes and penalties collected), 4, 5, 5a,
205b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6bb, 6c, 6d,
217, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation
22Tax Act and Section 3-7 of the Uniform Penalty and Interest Act
23as fully as if those provisions were set forth in this Section.
24    (b) Persons subject to any tax imposed under the authority
25granted in this Section may reimburse themselves for their
26seller's tax liability hereunder by separately stating that

 

 

HB5760- 3 -LRB102 28000 AWJ 39799 b

1tax as an additional charge, which charge may be stated in
2combination, in a single amount, with any State tax that
3sellers are required to collect.
4    (c) Whenever the Department of Revenue determines that a
5refund should be made under this Section to a claimant instead
6of issuing a credit memorandum, the Department of Revenue
7shall notify the State Comptroller, who shall cause the order
8to be drawn for the amount specified and to the person named in
9the notification from the Department of Revenue.
10    (d) The Department of Revenue shall immediately pay over
11to the State Treasurer, ex officio, as trustee, all taxes and
12penalties collected hereunder for deposit into the Local
13Cannabis Retailers' Occupation Tax Trust Fund.
14    (e) On or before the 25th day of each calendar month, the
15Department of Revenue shall prepare and certify to the
16Comptroller the amount of money to be disbursed from the Local
17Cannabis Retailers' Occupation Tax Trust Fund to counties from
18which retailers have paid taxes or penalties under this
19Section during the second preceding calendar month. The amount
20to be paid to each county shall be the amount (not including
21credit memoranda) collected under this Section from sales made
22in the county during the second preceding calendar month, plus
23an amount the Department of Revenue determines is necessary to
24offset any amounts that were erroneously paid to a different
25taxing body, and not including an amount equal to the amount of
26refunds made during the second preceding calendar month by the

 

 

HB5760- 4 -LRB102 28000 AWJ 39799 b

1Department on behalf of such county, and not including any
2amount that the Department determines is necessary to offset
3any amounts that were payable to a different taxing body but
4were erroneously paid to the county, less 1.5% of the
5remainder, which the Department shall transfer into the Tax
6Compliance and Administration Fund. The Department, at the
7time of each monthly disbursement to the counties, shall
8prepare and certify the State Comptroller the amount to be
9transferred into the Tax Compliance and Administration Fund
10under this Section. Within 10 days after receipt by the
11Comptroller of the disbursement certification to the counties
12and the Tax Compliance and Administration Fund provided for in
13this Section to be given to the Comptroller by the Department,
14the Comptroller shall cause the orders to be drawn for the
15respective amounts in accordance with the directions contained
16in the certification.
17    (f) An ordinance or resolution imposing or discontinuing a
18tax under this Section or effecting a change in the rate
19thereof that is adopted on or after June 25, 2019 (the
20effective date of Public Act 101-27) and for which a certified
21copy is filed with the Department on or before April 1, 2020
22shall be administered and enforced by the Department beginning
23on July 1, 2020. For ordinances filed with the Department
24after April 1, 2020, an ordinance or resolution imposing or
25discontinuing a tax under this Section or effecting a change
26in the rate thereof shall either (i) be adopted and a certified

 

 

HB5760- 5 -LRB102 28000 AWJ 39799 b

1copy thereof filed with the Department on or before the first
2day of April, whereupon the Department shall proceed to
3administer and enforce this Section as of the first day of July
4next following the adoption and filing; or (ii) be adopted and
5a certified copy thereof filed with the Department on or
6before the first day of October, whereupon the Department
7shall proceed to administer and enforce this Section as of the
8first day of January next following the adoption and filing.
9    (g) Notwithstanding any provision in this Section to the
10contrary, if an ordinance or resolution imposing a tax under
11this Section was adopted on or before October 1, 2020 and a
12certified copy thereof was filed with the Department of
13Revenue on or before November 1, 2020, then the Department
14shall proceed to administer and enforce this Section as of May
151, 2021 for such ordinances or resolutions.
16(Source: P.A. 101-27, eff. 6-25-19; 101-363, eff. 8-9-19;
17101-593, eff. 12-4-19; 102-2, eff. 4-2-21.)
 
18    Section 10. The Illinois Municipal Code is amended by
19changing Section 8-11-23 as follows:
 
20    (65 ILCS 5/8-11-23)
21    Sec. 8-11-23. Municipal Cannabis Retailers' Occupation Tax
22Law.
23    (a) This Section may be referred to as the Municipal
24Cannabis Retailers' Occupation Tax Law. The corporate

 

 

HB5760- 6 -LRB102 28000 AWJ 39799 b

1authorities of any municipality may, by ordinance, impose a
2tax upon all persons engaged in the business of selling
3cannabis, other than cannabis purchased under the
4Compassionate Use of Medical Cannabis Program Act, at retail
5in the municipality on the gross receipts from these sales
6made in the course of that business. A certified copy of an
7ordinance imposing, or ordinance or resolution changing or
8discontinuing, a tax under this Section shall be filed with
9the Department of Revenue and proof of filing shall be
10maintained by the municipality for at least 5 years. If
11imposed, the tax may not exceed 3% of the gross receipts from
12these sales and shall only be imposed in 1/4% increments. The
13tax imposed under this Section and all civil penalties that
14may be assessed as an incident of the tax shall be collected
15and enforced by the Department of Revenue. The Department of
16Revenue shall have full power to administer and enforce this
17Section; to collect all taxes and penalties due hereunder; to
18dispose of taxes and penalties so collected in the manner
19hereinafter provided; and to determine all rights to credit
20memoranda arising on account of the erroneous payment of tax
21or penalty under this Section. In the administration of and
22compliance with this Section, the Department and persons who
23are subject to this Section shall have the same rights,
24remedies, privileges, immunities, powers and duties, and be
25subject to the same conditions, restrictions, limitations,
26penalties and definitions of terms, and employ the same modes

 

 

HB5760- 7 -LRB102 28000 AWJ 39799 b

1of procedure, as are prescribed in Sections 1, 1a, 1d, 1e, 1f,
21i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
3provisions therein other than the State rate of tax), 2a, 2b,
42c, 2i, 3 (except as to the disposition of taxes and penalties
5collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
65l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
7Retailers' 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    (b) Persons subject to any tax imposed under the authority
11granted in this Section may reimburse themselves for their
12seller's tax liability hereunder by separately stating that
13tax as an additional charge, which charge may be stated in
14combination, in a single amount, with any State tax that
15sellers are required to collect.
16    (c) Whenever the Department of Revenue determines that a
17refund should be made under this Section to a claimant instead
18of issuing a credit memorandum, the Department of Revenue
19shall notify the State Comptroller, who shall cause the order
20to be drawn for the amount specified and to the person named in
21the notification from the Department of Revenue.
22    (d) The Department of Revenue shall immediately pay over
23to the State Treasurer, ex officio, as trustee, all taxes and
24penalties collected hereunder for deposit into the Local
25Cannabis Retailers' Occupation Tax Trust Fund.
26    (e) On or before the 25th day of each calendar month, the

 

 

HB5760- 8 -LRB102 28000 AWJ 39799 b

1Department of Revenue shall prepare and certify to the
2Comptroller the amount of money to be disbursed from the Local
3Cannabis Retailers' Occupation Tax Trust Fund to
4municipalities from which retailers have paid taxes or
5penalties under this Section during the second preceding
6calendar month. The amount to be paid to each municipality
7shall be the amount (not including credit memoranda) collected
8under this Section from sales made in the municipality during
9the second preceding calendar month, plus an amount the
10Department of Revenue determines is necessary to offset any
11amounts that were erroneously paid to a different taxing body,
12and not including an amount equal to the amount of refunds made
13during the second preceding calendar month by the Department
14on behalf of such municipality, and not including any amount
15that the Department determines is necessary to offset any
16amounts that were payable to a different taxing body but were
17erroneously paid to the municipality, less 1.5% of the
18remainder, which the Department shall transfer into the Tax
19Compliance and Administration Fund. The Department, at the
20time of each monthly disbursement to the municipalities, shall
21prepare and certify to the State Comptroller the amount to be
22transferred into the Tax Compliance and Administration Fund
23under this Section. Within 10 days after receipt by the
24Comptroller of the disbursement certification to the
25municipalities and the Tax Compliance and Administration Fund
26provided for in this Section to be given to the Comptroller by

 

 

HB5760- 9 -LRB102 28000 AWJ 39799 b

1the Department, the Comptroller shall cause the orders to be
2drawn for the respective amounts in accordance with the
3directions contained in the certification.
4    (f) An ordinance or resolution imposing or discontinuing a
5tax under this Section or effecting a change in the rate
6thereof that is adopted on or after June 25, 2019 (the
7effective date of Public Act 101-27) and for which a certified
8copy is filed with the Department on or before April 1, 2020
9shall be administered and enforced by the Department beginning
10on July 1, 2020. For ordinances filed with the Department
11after April 1, 2020, an ordinance or resolution imposing or
12discontinuing a tax under this Section or effecting a change
13in the rate thereof shall either (i) be adopted and a certified
14copy thereof filed with the Department on or before the first
15day of April, whereupon the Department shall proceed to
16administer and enforce this Section as of the first day of July
17next following the adoption and filing; or (ii) be adopted and
18a certified copy thereof filed with the Department on or
19before the first day of October, whereupon the Department
20shall proceed to administer and enforce this Section as of the
21first day of January next following the adoption and filing.
22(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.