Rep. Mike Fortner

Filed: 2/28/2012

 

 


 

 


 
09700HB5362ham001LRB097 17706 KMW 66296 a

1
AMENDMENT TO HOUSE BILL 5362

2    AMENDMENT NO. ______. Amend House Bill 5362 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1business. If the tax is approved by referendum on or after July
214, 2010 (the effective date of Public Act 96-1057), the
3corporate authorities of a non-home rule municipality may,
4until December 31, 2020 December 31, 2015, use the proceeds of
5the tax for expenditure on municipal operations, in addition to
6or in lieu of any expenditure on public infrastructure or for
7property tax relief. The tax imposed may not be more than 1%
8and may be imposed only in 1/4% increments. The tax may not be
9imposed on the sale of food for human consumption that is to be
10consumed off the premises where it is sold (other than
11alcoholic beverages, soft drinks, and food that has been
12prepared for immediate consumption) and prescription and
13nonprescription medicines, drugs, medical appliances, and
14insulin, urine testing materials, syringes, and needles used by
15diabetics. The tax imposed by a municipality pursuant to this
16Section and all civil penalties that may be assessed as an
17incident thereof shall be collected and enforced by the State
18Department of Revenue. The certificate of registration which is
19issued by the Department to a retailer under the Retailers'
20Occupation Tax Act shall permit such retailer to engage in a
21business which is taxable under any ordinance or resolution
22enacted pursuant to this Section without registering
23separately with the Department under such ordinance or
24resolution or under this Section. The Department shall have
25full power to administer and enforce this Section; to collect
26all taxes and penalties due hereunder; to dispose of taxes and

 

 

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1penalties so collected in the manner hereinafter provided, and
2to determine all rights to credit memoranda, arising on account
3of the erroneous payment of tax or penalty hereunder. In the
4administration of, and compliance with, this Section, the
5Department and persons who are subject to this Section shall
6have the same rights, remedies, privileges, immunities, powers
7and duties, and be subject to the same conditions,
8restrictions, limitations, penalties and definitions of terms,
9and employ the same modes of procedure, as are prescribed in
10Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in
11respect to all provisions therein other than the State rate of
12tax), 2c, 3 (except as to the disposition of taxes and
13penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
145j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
15Retailers' Occupation Tax Act and Section 3-7 of the Uniform
16Penalty and Interest Act as fully as if those provisions were
17set forth herein.
18    No municipality may impose a tax under this Section unless
19the municipality also imposes a tax at the same rate under
20Section 8-11-1.4 of this Code.
21    Persons subject to any tax imposed pursuant to the
22authority granted in this Section may reimburse themselves for
23their seller's tax liability hereunder by separately stating
24such tax as an additional charge, which charge may be stated in
25combination, in a single amount, with State tax which sellers
26are required to collect under the Use Tax Act, pursuant to such

 

 

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1bracket schedules as the Department may prescribe.
2    Whenever the Department determines that a refund should be
3made under this Section to a claimant instead of issuing a
4credit memorandum, the Department shall notify the State
5Comptroller, who shall cause the order to be drawn for the
6amount specified, and to the person named, in such notification
7from the Department. Such refund shall be paid by the State
8Treasurer out of the non-home rule municipal retailers'
9occupation tax fund.
10    The Department shall forthwith pay over to the State
11Treasurer, ex officio, as trustee, all taxes and penalties
12collected hereunder.
13    As soon as possible after the first day of each month,
14beginning January 1, 2011, upon certification of the Department
15of Revenue, the Comptroller shall order transferred, and the
16Treasurer shall transfer, to the STAR Bonds Revenue Fund the
17local sales tax increment, as defined in the Innovation
18Development and Economy Act, collected under this Section
19during the second preceding calendar month for sales within a
20STAR bond district.
21    After the monthly transfer to the STAR Bonds Revenue Fund,
22on or before the 25th day of each calendar month, the
23Department shall prepare and certify to the Comptroller the
24disbursement of stated sums of money to named municipalities,
25the municipalities to be those from which retailers have paid
26taxes or penalties hereunder to the Department during the

 

 

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1second preceding calendar month. The amount to be paid to each
2municipality shall be the amount (not including credit
3memoranda) collected hereunder during the second preceding
4calendar month by the Department plus an amount the Department
5determines is necessary to offset any amounts which were
6erroneously paid to a different taxing body, and not including
7an amount equal to the amount of refunds made during the second
8preceding calendar month by the Department on behalf of such
9municipality, and not including any amount which the Department
10determines is necessary to offset any amounts which were
11payable to a different taxing body but were erroneously paid to
12the municipality, and not including any amounts that are
13transferred to the STAR Bonds Revenue Fund. Within 10 days
14after receipt, by the Comptroller, of the disbursement
15certification to the municipalities, provided for in this
16Section to be given to the Comptroller by the Department, the
17Comptroller shall cause the orders to be drawn for the
18respective amounts in accordance with the directions contained
19in such certification.
20    For the purpose of determining the local governmental unit
21whose tax is applicable, a retail sale, by a producer of coal
22or other mineral mined in Illinois, is a sale at retail at the
23place where the coal or other mineral mined in Illinois is
24extracted from the earth. This paragraph does not apply to coal
25or other mineral when it is delivered or shipped by the seller
26to the purchaser at a point outside Illinois so that the sale

 

 

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1is exempt under the Federal Constitution as a sale in
2interstate or foreign commerce.
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    When certifying the amount of a monthly disbursement to a
8municipality under this Section, the Department shall increase
9or decrease such amount by an amount necessary to offset any
10misallocation of previous disbursements. The offset amount
11shall be the amount erroneously disbursed within the previous 6
12months from the time a misallocation is discovered.
13    The Department of Revenue shall implement this amendatory
14Act of the 91st General Assembly so as to collect the tax on
15and after January 1, 2002.
16    As used in this Section, "municipal" and "municipality"
17means a city, village or incorporated town, including an
18incorporated town which has superseded a civil township.
19    This Section shall be known and may be cited as the
20"Non-Home Rule Municipal Retailers' Occupation Tax Act".
21(Source: P.A. 96-939, eff. 6-24-10; 96-1057, eff. 7-14-10;
2297-333, eff. 8-12-11.)
 
23    (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)
24    Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
25Tax Act. The corporate authorities of a non-home rule

 

 

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1municipality may impose a tax upon all persons engaged, in such
2municipality, in the business of making sales of service for
3expenditure on public infrastructure or for property tax relief
4or both as defined in Section 8-11-1.2 if approved by
5referendum as provided in Section 8-11-1.1, of the selling
6price of all tangible personal property transferred by such
7servicemen either in the form of tangible personal property or
8in the form of real estate as an incident to a sale of service.
9If the tax is approved by referendum on or after July 14, 2010
10(the effective date of Public Act 96-1057), the corporate
11authorities of a non-home rule municipality may, until December
1231, 2020 December 31, 2015, use the proceeds of the tax for
13expenditure on municipal operations, in addition to or in lieu
14of any expenditure on public infrastructure or for property tax
15relief. The tax imposed may not be more than 1% and may be
16imposed only in 1/4% increments. The tax may not be imposed on
17the sale of food for human consumption that is to be consumed
18off the premises where it is sold (other than alcoholic
19beverages, soft drinks, and food that has been prepared for
20immediate consumption) and prescription and nonprescription
21medicines, drugs, medical appliances, and insulin, urine
22testing materials, syringes, and needles used by diabetics. The
23tax imposed by a municipality pursuant to this Section and all
24civil penalties that may be assessed as an incident thereof
25shall be collected and enforced by the State Department of
26Revenue. The certificate of registration which is issued by the

 

 

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

 

 

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1reference therein to Section 2b of the Retailers' Occupation
2Tax Act), 13 (except that any reference to the State shall mean
3the taxing municipality), the first paragraph of Section 15,
416, 17, 18, 19 and 20 of the Service Occupation Tax Act and
5Section 3-7 of the Uniform Penalty and Interest Act, as fully
6as if those provisions were set 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 8-11-1.3 of this Code.
10    Persons subject to any tax imposed pursuant to the
11authority granted in this Section may reimburse themselves for
12their serviceman's tax liability hereunder by separately
13stating such tax as an additional charge, which charge may be
14stated in combination, in a single amount, with State tax which
15servicemen are authorized to collect under the Service Use Tax
16Act, pursuant to such bracket schedules as the Department may
17prescribe.
18    Whenever the Department determines that a refund should be
19made under this Section to a claimant instead of issuing credit
20memorandum, the Department shall notify the State Comptroller,
21who shall cause the order to be drawn for the amount specified,
22and to the person named, in such notification from the
23Department. Such refund shall be paid by the State Treasurer
24out of the municipal retailers' occupation tax fund.
25    The Department shall forthwith pay over to the State
26Treasurer, ex officio, as trustee, all taxes and penalties

 

 

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1collected hereunder.
2    As soon as possible after the first day of each month,
3beginning January 1, 2011, upon certification of the Department
4of Revenue, the Comptroller shall order transferred, and the
5Treasurer shall transfer, to the STAR Bonds Revenue Fund the
6local sales tax increment, as defined in the Innovation
7Development and Economy Act, collected under this Section
8during the second preceding calendar month for sales within a
9STAR bond district.
10    After the monthly transfer to the STAR Bonds Revenue Fund,
11on or before the 25th day of each calendar month, the
12Department shall prepare and certify to the Comptroller the
13disbursement of stated sums of money to named municipalities,
14the municipalities to be those from which suppliers and
15servicemen have paid taxes or penalties hereunder to the
16Department during the second preceding calendar month. The
17amount to be paid to each municipality shall be the amount (not
18including credit memoranda) collected hereunder during the
19second preceding calendar month by the Department, and not
20including an amount equal to the amount of refunds made during
21the second preceding calendar month by the Department on behalf
22of such municipality, and not including any amounts that are
23transferred to the STAR Bonds Revenue Fund. Within 10 days
24after receipt, by the Comptroller, of the disbursement
25certification to the municipalities and the General Revenue
26Fund, provided for in this Section to be given to the

 

 

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1Comptroller by the Department, the Comptroller shall cause the
2orders to be drawn for the respective amounts in accordance
3with the directions contained in such certification.
4    The Department of Revenue shall implement this amendatory
5Act of the 91st General Assembly so as to collect the tax on
6and after January 1, 2002.
7    Nothing in this Section shall be construed to authorize a
8municipality to impose a tax upon the privilege of engaging in
9any business which under the constitution of the United States
10may not be made the subject of taxation by this State.
11    As used in this Section, "municipal" or "municipality"
12means or refers to a city, village or incorporated town,
13including an incorporated town which has superseded a civil
14township.
15    This Section shall be known and may be cited as the
16"Non-Home Rule Municipal Service Occupation Tax Act".
17(Source: P.A. 96-939, eff. 6-24-10; 96-1057, eff. 7-14-10;
1897-333, eff. 8-12-11.)
 
19    (65 ILCS 5/8-11-1.5)  (from Ch. 24, par. 8-11-1.5)
20    Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The
21corporate authorities of a non-home rule municipality may
22impose a tax upon the privilege of using, in such municipality,
23any item of tangible personal property which is purchased at
24retail from a retailer, and which is titled or registered with
25an agency of this State's government, based on the selling

 

 

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1price of such tangible personal property, as "selling price" is
2defined in the Use Tax Act, for expenditure on public
3infrastructure or for property tax relief or both as defined in
4Section 8-11-1.2, if approved by referendum as provided in
5Section 8-11-1.1. If the tax is approved by referendum on or
6after the effective date of this amendatory Act of the 96th
7General Assembly, the corporate authorities of a non-home rule
8municipality may, until December 31, 2020 December 31, 2015,
9use the proceeds of the tax for expenditure on municipal
10operations, in addition to or in lieu of any expenditure on
11public infrastructure or for property tax relief. The tax
12imposed may not be more than 1% and may be imposed only in 1/4%
13increments. Such tax shall be collected from persons whose
14Illinois address for title or registration purposes is given as
15being in such municipality. Such tax shall be collected by the
16municipality imposing such tax. A non-home rule municipality
17may not impose and collect the tax prior to January 1, 2002.
18    This Section shall be known and may be cited as the
19"Non-Home Rule Municipal Use Tax Act".
20(Source: P.A. 96-1057, eff. 7-14-10.)
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.".