HB5362 EngrossedLRB097 17706 KMW 62920 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 Illinois Municipal Code is amended by
5changing Sections 8-11-1.3, 8-11-1.4, and 8-11-1.5 as follows:
 
6    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
7    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
8Occupation Tax Act. The corporate authorities of a non-home
9rule municipality may impose a tax upon all persons engaged in
10the business of selling tangible personal property, other than
11on an item of tangible personal property which is titled and
12registered by an agency of this State's Government, at retail
13in the municipality for expenditure on public infrastructure or
14for property tax relief or both as defined in Section 8-11-1.2
15if approved by referendum as provided in Section 8-11-1.1, of
16the gross receipts from such sales made in the course of such
17business. If the tax is approved by referendum on or after July
1814, 2010 (the effective date of Public Act 96-1057), the
19corporate authorities of a non-home rule municipality may,
20until December 31, 2020 December 31, 2015, use the proceeds of
21the tax for expenditure on municipal operations, in addition to
22or in lieu of any expenditure on public infrastructure or for
23property tax relief. The tax imposed may not be more than 1%

 

 

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1and may be imposed only in 1/4% increments. The tax may not be
2imposed on the sale of food for human consumption that is to be
3consumed off the premises where it is sold (other than
4alcoholic beverages, soft drinks, and food that has been
5prepared for immediate consumption) and prescription and
6nonprescription medicines, drugs, medical appliances, and
7insulin, urine testing materials, syringes, and needles used by
8diabetics. The tax imposed by a municipality pursuant to this
9Section and all civil penalties that may be assessed as an
10incident thereof shall be collected and enforced by the State
11Department of Revenue. The certificate of registration which is
12issued by the Department to a retailer under the Retailers'
13Occupation Tax Act shall permit such retailer to engage in a
14business which is taxable under any ordinance or resolution
15enacted pursuant to this Section without registering
16separately with the Department under such ordinance or
17resolution or under this Section. The Department shall have
18full power to administer and enforce this Section; to collect
19all taxes and penalties due hereunder; to dispose of taxes and
20penalties so collected in the manner hereinafter provided, and
21to determine all rights to credit memoranda, arising on account
22of the erroneous payment of tax or penalty hereunder. In the
23administration of, and compliance with, this Section, the
24Department and persons who are subject to this Section shall
25have the same rights, remedies, privileges, immunities, powers
26and duties, and be subject to the same conditions,

 

 

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1restrictions, limitations, penalties and definitions of terms,
2and employ the same modes of procedure, as are prescribed in
3Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in
4respect to all provisions therein other than the State rate of
5tax), 2c, 3 (except as to the disposition of taxes and
6penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
75j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
8Retailers' Occupation Tax Act and Section 3-7 of the Uniform
9Penalty and Interest Act as fully as if those provisions were
10set forth herein.
11    No municipality may impose a tax under this Section unless
12the municipality also imposes a tax at the same rate under
13Section 8-11-1.4 of this Code.
14    Persons subject to any tax imposed pursuant to the
15authority granted in this Section may reimburse themselves for
16their seller's tax liability hereunder by separately stating
17such tax as an additional charge, which charge may be stated in
18combination, in a single amount, with State tax which sellers
19are required to collect under the Use Tax Act, pursuant to such
20bracket schedules as the Department may prescribe.
21    Whenever the Department determines that a refund should be
22made under this Section to a claimant instead of issuing a
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 notification
26from the Department. Such refund shall be paid by the State

 

 

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1Treasurer out of the non-home rule municipal retailers'
2occupation tax fund.
3    The Department shall forthwith pay over to the State
4Treasurer, ex officio, as trustee, all taxes and penalties
5collected hereunder.
6    As soon as possible after the first day of each month,
7beginning January 1, 2011, upon certification of the Department
8of Revenue, the Comptroller shall order transferred, and the
9Treasurer shall transfer, to the STAR Bonds Revenue Fund the
10local sales tax increment, as defined in the Innovation
11Development and Economy Act, collected under this Section
12during the second preceding calendar month for sales within a
13STAR bond district.
14    After the monthly transfer to the STAR Bonds Revenue Fund,
15on or before the 25th day of each calendar month, the
16Department shall prepare and certify to the Comptroller the
17disbursement of stated sums of money to named municipalities,
18the municipalities to be those from which retailers have paid
19taxes or penalties hereunder to the Department during the
20second preceding calendar month. The amount to be paid to each
21municipality shall be the amount (not including credit
22memoranda) collected hereunder during the second preceding
23calendar month by the Department plus an amount the Department
24determines is necessary to offset any amounts which were
25erroneously paid to a different taxing body, and not including
26an amount equal to the amount of refunds made during the second

 

 

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1preceding calendar month by the Department on behalf of such
2municipality, and not including any amount which the Department
3determines is necessary to offset any amounts which were
4payable to a different taxing body but were erroneously paid to
5the municipality, and not including any amounts that are
6transferred to the STAR Bonds Revenue Fund. Within 10 days
7after receipt, by the Comptroller, of the disbursement
8certification to the municipalities, provided for in this
9Section to be given to the Comptroller by the Department, the
10Comptroller shall cause the orders to be drawn for the
11respective amounts in accordance with the directions contained
12in such certification.
13    For the purpose of determining the local governmental unit
14whose tax is applicable, a retail sale, by a producer of coal
15or other mineral mined in Illinois, is a sale at retail at the
16place where the coal or other mineral mined in Illinois is
17extracted from the earth. This paragraph does not apply to coal
18or other mineral when it is delivered or shipped by the seller
19to the purchaser at a point outside Illinois so that the sale
20is exempt under the Federal Constitution as a sale in
21interstate or foreign commerce.
22    Nothing in this Section shall be construed to authorize a
23municipality to impose a tax upon the privilege of engaging in
24any business which under the constitution of the United States
25may not be made the subject of taxation by this State.
26    When certifying the amount of a monthly disbursement to a

 

 

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1municipality under this Section, the Department shall increase
2or decrease such amount by an amount necessary to offset any
3misallocation of previous disbursements. The offset amount
4shall be the amount erroneously disbursed within the previous 6
5months from the time a misallocation is discovered.
6    The Department of Revenue shall implement this amendatory
7Act of the 91st General Assembly so as to collect the tax on
8and after January 1, 2002.
9    As used in this Section, "municipal" and "municipality"
10means a city, village or incorporated town, including an
11incorporated town which has superseded a civil township.
12    This Section shall be known and may be cited as the
13"Non-Home Rule Municipal Retailers' Occupation Tax Act".
14(Source: P.A. 96-939, eff. 6-24-10; 96-1057, eff. 7-14-10;
1597-333, eff. 8-12-11.)
 
16    (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)
17    Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
18Tax Act. The corporate authorities of a non-home rule
19municipality may impose a tax upon all persons engaged, in such
20municipality, in the business of making sales of service for
21expenditure on public infrastructure or for property tax relief
22or both as defined in Section 8-11-1.2 if approved by
23referendum as provided in Section 8-11-1.1, of the selling
24price of all tangible personal property transferred by such
25servicemen either in the form of tangible personal property or

 

 

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1in the form of real estate as an incident to a sale of service.
2If the tax is approved by referendum on or after July 14, 2010
3(the effective date of Public Act 96-1057), the corporate
4authorities of a non-home rule municipality may, until December
531, 2020 December 31, 2015, use the proceeds of the tax for
6expenditure on municipal operations, in addition to or in lieu
7of any expenditure on public infrastructure or for property tax
8relief. The tax imposed may not be more than 1% and may be
9imposed only in 1/4% increments. The tax may not be imposed on
10the sale of food for human consumption that is to be consumed
11off the premises where it is sold (other than alcoholic
12beverages, soft drinks, and food that has been prepared for
13immediate consumption) and prescription and nonprescription
14medicines, drugs, medical appliances, and insulin, urine
15testing materials, syringes, and needles used by diabetics. The
16tax imposed by a municipality pursuant to this Section and all
17civil penalties that may be assessed as an incident thereof
18shall be collected and enforced by the State Department of
19Revenue. The certificate of registration which is issued by the
20Department to a retailer under the Retailers' Occupation Tax
21Act or under the Service Occupation Tax Act shall permit such
22registrant to engage in a business which is taxable under any
23ordinance or resolution enacted pursuant to this Section
24without registering separately with the Department under such
25ordinance or resolution or under this Section. The Department
26shall have full power to administer and enforce this Section;

 

 

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1to collect all taxes and penalties due hereunder; to dispose of
2taxes and penalties so collected in the manner hereinafter
3provided, and to determine all rights to credit memoranda
4arising on account of the erroneous payment of tax or penalty
5hereunder. In the administration of, and compliance with, this
6Section the Department and persons who are subject to this
7Section shall have the same rights, remedies, privileges,
8immunities, powers and duties, and be subject to the same
9conditions, restrictions, limitations, penalties and
10definitions of terms, and employ the same modes of procedure,
11as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
12respect to all provisions therein other than the State rate of
13tax), 4 (except that the reference to the State shall be to the
14taxing municipality), 5, 7, 8 (except that the jurisdiction to
15which the tax shall be a debt to the extent indicated in that
16Section 8 shall be the taxing municipality), 9 (except as to
17the disposition of taxes and penalties collected, and except
18that the returned merchandise credit for this municipal tax may
19not be taken against any State tax), 10, 11, 12 (except the
20reference therein to Section 2b of the Retailers' Occupation
21Tax Act), 13 (except that any reference to the State shall mean
22the taxing municipality), the first paragraph of Section 15,
2316, 17, 18, 19 and 20 of the Service Occupation Tax Act and
24Section 3-7 of the Uniform Penalty and Interest Act, as fully
25as if those provisions were set forth herein.
26    No municipality may impose a tax under this Section unless

 

 

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1the municipality also imposes a tax at the same rate under
2Section 8-11-1.3 of this Code.
3    Persons subject to any tax imposed pursuant to the
4authority granted in this Section may reimburse themselves for
5their serviceman's tax liability hereunder by separately
6stating such tax as an additional charge, which charge may be
7stated in combination, in a single amount, with State tax which
8servicemen are authorized to collect under the Service Use Tax
9Act, pursuant to such bracket schedules as the Department may
10prescribe.
11    Whenever the Department determines that a refund should be
12made under this Section to a claimant instead of issuing credit
13memorandum, the Department shall notify the State Comptroller,
14who shall cause the order to be drawn for the amount specified,
15and to the person named, in such notification from the
16Department. Such refund shall be paid by the State Treasurer
17out of the municipal retailers' occupation tax fund.
18    The Department shall forthwith pay over to the State
19Treasurer, ex officio, as trustee, all taxes and penalties
20collected hereunder.
21    As soon as possible after the first day of each month,
22beginning January 1, 2011, upon certification of the Department
23of Revenue, the Comptroller shall order transferred, and the
24Treasurer shall transfer, to the STAR Bonds Revenue Fund the
25local sales tax increment, as defined in the Innovation
26Development and Economy Act, collected under this Section

 

 

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1during the second preceding calendar month for sales within a
2STAR bond district.
3    After the monthly transfer to the STAR Bonds Revenue Fund,
4on or before the 25th day of each calendar month, the
5Department shall prepare and certify to the Comptroller the
6disbursement of stated sums of money to named municipalities,
7the municipalities to be those from which suppliers and
8servicemen have paid taxes or penalties hereunder to the
9Department during the second preceding calendar month. The
10amount to be paid to each municipality shall be the amount (not
11including credit memoranda) collected hereunder during the
12second preceding calendar month by the Department, and not
13including an amount equal to the amount of refunds made during
14the second preceding calendar month by the Department on behalf
15of such municipality, and not including any amounts that are
16transferred to the STAR Bonds Revenue Fund. Within 10 days
17after receipt, by the Comptroller, of the disbursement
18certification to the municipalities and the General Revenue
19Fund, provided for in this Section to be given to the
20Comptroller by the Department, the Comptroller shall cause the
21orders to be drawn for the respective amounts in accordance
22with the directions contained in such certification.
23    The Department of Revenue shall implement this amendatory
24Act of the 91st General Assembly so as to collect the tax on
25and after January 1, 2002.
26    Nothing in this Section shall be construed to authorize a

 

 

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1municipality to impose a tax upon the privilege of engaging in
2any business which under the constitution of the United States
3may not be made the subject of taxation by this State.
4    As used in this Section, "municipal" or "municipality"
5means or refers to a city, village or incorporated town,
6including an incorporated town which has superseded a civil
7township.
8    This Section shall be known and may be cited as the
9"Non-Home Rule Municipal Service Occupation Tax Act".
10(Source: P.A. 96-939, eff. 6-24-10; 96-1057, eff. 7-14-10;
1197-333, eff. 8-12-11.)
 
12    (65 ILCS 5/8-11-1.5)  (from Ch. 24, par. 8-11-1.5)
13    Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The
14corporate authorities of a non-home rule municipality may
15impose a tax upon the privilege of using, in such municipality,
16any item of tangible personal property which is purchased at
17retail from a retailer, and which is titled or registered with
18an agency of this State's government, based on the selling
19price of such tangible personal property, as "selling price" is
20defined in the Use Tax Act, for expenditure on public
21infrastructure or for property tax relief or both as defined in
22Section 8-11-1.2, if approved by referendum as provided in
23Section 8-11-1.1. If the tax is approved by referendum on or
24after the effective date of this amendatory Act of the 96th
25General Assembly, the corporate authorities of a non-home rule

 

 

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1municipality may, until December 31, 2020 December 31, 2015,
2use the proceeds of the tax for expenditure on municipal
3operations, in addition to or in lieu of any expenditure on
4public infrastructure or for property tax relief. The tax
5imposed may not be more than 1% and may be imposed only in 1/4%
6increments. Such tax shall be collected from persons whose
7Illinois address for title or registration purposes is given as
8being in such municipality. Such tax shall be collected by the
9municipality imposing such tax. A non-home rule municipality
10may not impose and collect the tax prior to January 1, 2002.
11    This Section shall be known and may be cited as the
12"Non-Home Rule Municipal Use Tax Act".
13(Source: P.A. 96-1057, eff. 7-14-10.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.