98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3447

 

Introduced 2/14/2014, by Sen. Michael Noland

 

SYNOPSIS AS INTRODUCED:
 
55 ILCS 5/5-1035.1  from Ch. 34, par. 5-1035.1
65 ILCS 5/8-11-6  from Ch. 24, par. 8-11-6

    Amends the County Motor Fuel Tax Law in the Counties Code and the Home Rule Municipal Use Tax Act in the Illinois Municipal Code. Provides that the State Treasurer shall retain 2% of amount to be paid to each county or municipality under those provisions (not including credit memoranda or refunds) to cover the costs incurred by the Department of Revenue in administering and enforcing those provisions. Provides that the 2% shall be transferred to the Tax Compliance and Administration Fund. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3447LRB098 19712 HLH 54923 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 Counties Code is amended by changing Section
55-1035.1 as follows:
 
6    (55 ILCS 5/5-1035.1)  (from Ch. 34, par. 5-1035.1)
7    Sec. 5-1035.1. County Motor Fuel Tax Law. The county board
8of the counties of DuPage, Kane and McHenry may, by an
9ordinance or resolution adopted by an affirmative vote of a
10majority of the members elected or appointed to the county
11board, impose a tax upon all persons engaged in the county in
12the business of selling motor fuel, as now or hereafter defined
13in the Motor Fuel Tax Law, at retail for the operation of motor
14vehicles upon public highways or for the operation of
15recreational watercraft upon waterways. Kane County may exempt
16diesel fuel from the tax imposed pursuant to this Section. The
17tax may be imposed, in half-cent increments, at a rate not
18exceeding 4 cents per gallon of motor fuel sold at retail
19within the county for the purpose of use or consumption and not
20for the purpose of resale. The proceeds from the tax shall be
21used by the county solely for the purpose of operating,
22constructing and improving public highways and waterways, and
23acquiring real property and right-of-ways for public highways

 

 

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1and waterways within the county imposing the tax.
2    A tax imposed pursuant to this Section, and all civil
3penalties that may be assessed as an incident thereof, shall be
4administered, collected and enforced by the Illinois
5Department of Revenue in the same manner as the tax imposed
6under the Retailers' Occupation Tax Act, as now or hereafter
7amended, insofar as may be practicable; except that in the
8event of a conflict with the provisions of this Section, this
9Section shall control. The Department of Revenue shall have
10full power: to administer and enforce this Section; to collect
11all taxes and penalties due hereunder; to dispose of taxes and
12penalties so collected in the manner hereinafter provided; and
13to determine all rights to credit memoranda arising on account
14of the erroneous payment of tax or penalty hereunder.
15    Whenever the Department determines that a refund shall be
16made under this Section to a claimant instead of issuing a
17credit memorandum, the Department shall notify the State
18Comptroller, who shall cause the order to be drawn for the
19amount specified, and to the person named, in the notification
20from the Department. The refund shall be paid by the State
21Treasurer out of the County Option Motor Fuel Tax Fund.
22    The Department shall forthwith pay over to the State
23Treasurer, ex-officio, as trustee, all taxes and penalties
24collected hereunder, which shall be deposited into the County
25Option Motor Fuel Tax Fund, a special fund in the State
26Treasury which is hereby created. On or before the 25th day of

 

 

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1each calendar month, the Department shall prepare and certify
2to the State Comptroller the disbursement of stated sums of
3money to named counties for which taxpayers have paid taxes or
4penalties hereunder to the Department during the second
5preceding calendar month. The amount to be paid to each county
6shall be the amount (not including credit memoranda) collected
7hereunder from retailers within the county during the second
8preceding calendar month by the Department, but not including
9an amount equal to the amount of refunds made during the second
10preceding calendar month by the Department on behalf of the
11county; less 2% of the balance, which sum shall be retained by
12the State Treasurer to cover the costs incurred by the
13Department in administering and enforcing the provisions of
14this Section. The Department, at the time of each monthly
15disbursement to the counties, shall prepare and certify to the
16Comptroller the amount so retained by the State Treasurer,
17which shall be transferred into the Tax Compliance and
18Administration Fund the amount expended during the second
19preceding month by the Department pursuant to appropriation
20from the County Option Motor Fuel Tax Fund for the
21administration and enforcement of this Section, which
22appropriation shall not exceed $200,000 for fiscal year 1990
23and, for each year thereafter, shall not exceed 2% of the
24amount deposited into the County Option Motor Fuel Tax Fund
25during the preceding fiscal year.
26    A county may direct, by ordinance, that all or a portion of

 

 

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1the taxes and penalties collected under the County Option Motor
2Fuel Tax shall be deposited into the Transportation Development
3Partnership Trust Fund.
4    Nothing in this Section shall be construed to authorize a
5county to impose a tax upon the privilege of engaging in any
6business which under the Constitution of the United States may
7not be made the subject of taxation by this State.
8    An ordinance or resolution imposing a tax hereunder or
9effecting a change in the rate thereof shall be effective on
10the first day of the second calendar month next following the
11month in which the ordinance or resolution is adopted and a
12certified copy thereof is filed with the Department of Revenue,
13whereupon the Department of Revenue shall proceed to administer
14and enforce this Section on behalf of the county as of the
15effective date of the ordinance or resolution. Upon a change in
16rate of a tax levied hereunder, or upon the discontinuance of
17the tax, the county board of the county shall, on or not later
18than 5 days after the effective date of the ordinance or
19resolution discontinuing the tax or effecting a change in rate,
20transmit to the Department of Revenue a certified copy of the
21ordinance or resolution effecting the change or
22discontinuance.
23    This Section shall be known and may be cited as the County
24Motor Fuel Tax Law.
25(Source: P.A. 96-845, eff. 7-1-12.)
 

 

 

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1    Section 10. The Illinois Municipal Code is amended by
2changing Section 8-11-6 as follows:
 
3    (65 ILCS 5/8-11-6)  (from Ch. 24, par. 8-11-6)
4    Sec. 8-11-6. Home Rule Municipal Use Tax Act.
5    (a) The corporate authorities of a home rule municipality
6may impose a tax upon the privilege of using, in such
7municipality, any item of tangible personal property which is
8purchased at retail from a retailer, and which is titled or
9registered at a location within the corporate limits of such
10home rule municipality with an agency of this State's
11government, at a rate which is an increment of 1/4% and based
12on the selling price of such tangible personal property, as
13"selling price" is defined in the Use Tax Act. In home rule
14municipalities with less than 2,000,000 inhabitants, the tax
15shall be collected by the municipality imposing the tax from
16persons whose Illinois address for titling or registration
17purposes is given as being in such municipality.
18    (b) In home rule municipalities with 2,000,000 or more
19inhabitants, the corporate authorities of the municipality may
20additionally impose a tax beginning July 1, 1991 upon the
21privilege of using in the municipality, any item of tangible
22personal property, other than tangible personal property
23titled or registered with an agency of the State's government,
24that is purchased at retail from a retailer located outside the
25corporate limits of the municipality, at a rate that is an

 

 

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1increment of 1/4% not to exceed 1% and based on the selling
2price of the tangible personal property, as "selling price" is
3defined in the Use Tax Act. Such tax shall be collected from
4the purchaser either by the municipality imposing such tax or
5by the Department of Revenue pursuant to an agreement between
6the Department and the municipality.
7    To prevent multiple home rule taxation, the use in a home
8rule municipality of tangible personal property that is
9acquired outside the municipality and caused to be brought into
10the municipality by a person who has already paid a home rule
11municipal tax in another municipality in respect to the sale,
12purchase, or use of that property, shall be exempt to the
13extent of the amount of the tax properly due and paid in the
14other home rule municipality.
15    (c) If a municipality having 2,000,000 or more inhabitants
16imposes the tax authorized by subsection (a), then the tax
17shall be collected by the Illinois Department of Revenue when
18the property is purchased at retail from a retailer in the
19county in which the home rule municipality imposing the tax is
20located, and in all contiguous counties. The tax shall be
21remitted to the State, or an exemption determination must be
22obtained from the Department before the title or certificate of
23registration for the property may be issued. The tax or proof
24of exemption may be transmitted to the Department by way of the
25State agency with which, or State officer with whom, the
26tangible personal property must be titled or registered if the

 

 

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1Department and that agency or State officer determine that this
2procedure will expedite the processing of applications for
3title or registration.
4    The Department shall have full power to administer and
5enforce this Section to collect all taxes, penalties and
6interest due hereunder, to dispose of taxes, penalties and
7interest so collected in the manner hereinafter provided, and
8determine all rights to credit memoranda or refunds arising on
9account of the erroneous payment of tax, penalty or interest
10hereunder. In the administration of and compliance with this
11Section the Department 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 as
16are prescribed in Sections 2 (except the definition of
17"retailer maintaining a place of business in this State"), 3
18(except provisions pertaining to the State rate of tax, and
19except provisions concerning collection or refunding of the tax
20by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22 of the
21Use Tax Act, which are not inconsistent with this Section, as
22fully as if provisions contained in those Sections of the Use
23Tax Act were set forth herein.
24    Whenever the Department determines that a refund shall be
25made under this Section to a claimant instead of issuing a
26credit memorandum, the Department shall notify the State

 

 

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1Comptroller, who shall cause the order to be drawn for the
2amount specified, and to the person named, in such notification
3from the Department. Such refund shall be paid by the State
4Treasurer out of the home rule municipal retailers' occupation
5tax fund.
6    The Department shall forthwith pay over to the State
7Treasurer, ex officio, as trustee, all taxes, penalties and
8interest collected hereunder. On or before the 25th day of each
9calendar month, the Department shall prepare and certify to the
10State Comptroller the disbursement of stated sums of money to
11named municipalities, the municipality in each instance to be
12that municipality from which the Department during the second
13preceding calendar month, collected municipal use tax from any
14person whose Illinois address for titling or registration
15purposes is given as being in such municipality. The amount to
16be paid to each municipality shall be the amount (not including
17credit memoranda) collected hereunder during the second
18preceding calendar month by the Department, and not including
19an amount equal to the amount of refunds made during the second
20preceding calendar month by the Department on behalf of such
21municipality, less 2% of the balance, which sum shall be
22retained by the State Treasurer to cover the costs incurred by
23the Department in administering and enforcing the provisions of
24this Section. The Department, at the time of each monthly
25disbursement to the municipalities, shall prepare and certify
26to the Comptroller the amount so retained by the State

 

 

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1Treasurer, which shall be transferred into the Tax Compliance
2and Administration Fund the amount expended during the second
3preceding month by the Department to be paid from the
4appropriation to the Department from the Home Rule Municipal
5Retailers' Occupation Tax Trust Fund. The appropriation to
6cover the costs incurred by the Department in administering and
7enforcing this Section shall not exceed 2% of the amount
8estimated to be deposited into the Home Rule Municipal
9Retailers' Occupation Tax Trust Fund during the fiscal year for
10which the appropriation is made. Within 10 days after receipt
11by the State Comptroller of the disbursement certification to
12the municipalities provided for in this Section to be given to
13the State Comptroller by the Department, the State Comptroller
14shall cause the orders to be drawn for the respective amounts
15in accordance with the directions contained in that
16certification.
17    Any ordinance imposing or discontinuing any tax to be
18collected and enforced by the Department under this Section
19shall be adopted and a certified copy thereof filed with the
20Department on or before October 1, whereupon the Department of
21Revenue shall proceed to administer and enforce this Section on
22behalf of the municipalities as of January 1 next following
23such adoption and filing. Beginning April 1, 1998, any
24ordinance imposing or discontinuing any tax to be collected and
25enforced by the Department under this Section shall either (i)
26be adopted and a certified copy thereof filed with the

 

 

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1Department on or before April 1, whereupon the Department of
2Revenue shall proceed to administer and enforce this Section on
3behalf of the municipalities as of July 1 next following the
4adoption and filing; or (ii) be adopted and a certified copy
5thereof filed with the Department on or before October 1,
6whereupon the Department of Revenue shall proceed to administer
7and enforce this Section on behalf of the municipalities as of
8January 1 next following the adoption and filing.
9    Nothing in this subsection (c) shall prevent a home rule
10municipality from collecting the tax pursuant to subsection (a)
11in any situation where such tax is not collected by the
12Department of Revenue under this subsection (c).
13    (d) Any unobligated balance remaining in the Municipal
14Retailers' Occupation Tax Fund on December 31, 1989, which fund
15was abolished by Public Act 85-1135, and all receipts of
16municipal tax as a result of audits of liability periods prior
17to January 1, 1990, shall be paid into the Local Government Tax
18Fund, for distribution as provided by this Section prior to the
19enactment of Public Act 85-1135. All receipts of municipal tax
20as a result of an assessment not arising from an audit, for
21liability periods prior to January 1, 1990, shall be paid into
22the Local Government Tax Fund for distribution before July 1,
231990, as provided by this Section prior to the enactment of
24Public Act 85-1135, and on and after July 1, 1990, all such
25receipts shall be distributed as provided in Section 6z-18 of
26the State Finance Act.

 

 

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1    (e) As used in this Section, "Municipal" and "Municipality"
2means a city, village or incorporated town, including an
3incorporated town which has superseded a civil township.
4    (f) This Section shall be known and may be cited as the
5Home Rule Municipal Use Tax Act.
6(Source: P.A. 91-51, eff. 6-30-99; 92-221, eff. 8-2-01; 92-844,
7eff. 8-23-02; 92-846, eff. 8-23-02.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.