99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB5548

 

Introduced , by Rep. John D. Cavaletto

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-11-1.1  from Ch. 24, par. 8-11-1.1
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 a revenue tax collected by a municipality may also be used towards costs associated with the abatement of unsafe or dilapidated structures (currently, only on municipal operation, public infrastructure, or property tax relief). Effective immediately.


LRB099 16810 AWJ 41157 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5548LRB099 16810 AWJ 41157 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 8-11-1.1, 8-11-1.3, 8-11-1.4, and 8-11-1.5
6as 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, impose
13by ordinance or resolution the tax authorized in Sections
148-11-1.3, 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 electors
17of the municipality the question of whether the municipality
18shall impose such tax. Such question shall be certified by the
19municipal clerk to the election authority in accordance with
20Section 28-5 of the Election Code and shall be in a form in
21accordance with Section 16-7 of the Election Code.
22    Notwithstanding any provision of law to the contrary, if
23the proceeds of the tax may be used for municipal operations

 

 

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

 

 

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

 

 

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1under this Section is adopted, a certified copy thereof,
2together with a certification that the ordinance or resolution
3received referendum approval in the case of the imposition of
4or increase in the rate of such tax, shall be filed with the
5Department of Revenue, either (i) on or before the first day of
6May, whereupon the Department shall proceed to administer and
7enforce this Section as of the first day of July next following
8the adoption and filing; or (ii) on or before the first day of
9October, whereupon the Department shall proceed to administer
10and enforce this Section as of the first day of January next
11following the adoption and filing.
12    Notwithstanding any provision in this Section to the
13contrary, if, in a non-home rule municipality with more than
14150,000 but fewer than 200,000 inhabitants, as determined by
15the last preceding federal decennial census, an ordinance or
16resolution under this Section imposes or discontinues a tax or
17changes the tax rate as of July 1, 2007, then that ordinance or
18resolution, together with a certification that the ordinance or
19resolution received referendum approval in the case of the
20imposition of the tax, must be adopted and a certified copy of
21that ordinance or resolution must be filed with the Department
22on or before May 15, 2007, whereupon the Department shall
23proceed to administer and enforce this Section as of July 1,
242007.
25    Notwithstanding any provision in this Section to the
26contrary, if, in a non-home rule municipality with more than

 

 

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16,500 but fewer than 7,000 inhabitants, as determined by the
2last preceding federal decennial census, an ordinance or
3resolution under this Section imposes or discontinues a tax or
4changes the tax rate on or before May 20, 2009, then that
5ordinance or resolution, together with a certification that the
6ordinance or resolution received referendum approval in the
7case of the imposition of the tax, must be adopted and a
8certified copy of that ordinance or resolution must be filed
9with the Department on or before May 20, 2009, whereupon the
10Department shall proceed to administer and enforce this Section
11as of July 1, 2009.
12    A non-home rule municipality may file a certified copy of
13an ordinance or resolution, with a certification that the
14ordinance or resolution received referendum approval in the
15case of the imposition of the tax, with the Department of
16Revenue, as required under this Section, only after October 2,
172000.
18    The tax authorized by this Section may not be more than 1%
19and may be imposed only in 1/4% increments.
20(Source: P.A. 98-584, eff. 8-27-13.)
 
21    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
22    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
23Occupation Tax Act. The corporate authorities of a non-home
24rule municipality may impose a tax upon all persons engaged in
25the business of selling tangible personal property, other than

 

 

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1on an item of tangible personal property which is titled and
2registered by an agency of this State's Government, at retail
3in the municipality for expenditure for costs associated with
4the abatement of unsafe or dilapidated structures, on public
5infrastructure, or for property tax relief (the latter two or
6both as defined in Section 8-11-1.2), or all such expenditures
7if approved by referendum as provided in Section 8-11-1.1, of
8the gross receipts from such sales made in the course of such
9business. If the tax is approved by referendum on or after July
1014, 2010 (the effective date of Public Act 96-1057), the
11corporate authorities of a non-home rule municipality may,
12until December 31, 2020, use the proceeds of the tax for
13expenditure on municipal operations, in addition to or in lieu
14of any expenditure for costs associated with the abatement of
15unsafe or dilapidated structures, on public infrastructure, or
16for property tax relief. The tax imposed may not be more than
171% and may be imposed only in 1/4% increments. The tax may not
18be imposed on the sale of food for human consumption that is to
19be consumed off the premises where it is sold (other than
20alcoholic beverages, soft drinks, and food that has been
21prepared for immediate consumption) and prescription and
22nonprescription medicines, drugs, medical appliances, and
23insulin, urine testing materials, syringes, and needles used by
24diabetics. The tax imposed by a municipality pursuant to this
25Section and all civil penalties that may be assessed as an
26incident thereof shall be collected and enforced by the State

 

 

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1Department of Revenue. The certificate of registration which is
2issued by the Department to a retailer under the Retailers'
3Occupation Tax Act shall permit such retailer to engage in a
4business which is taxable under any ordinance or resolution
5enacted pursuant to this Section without registering
6separately with the Department under such ordinance or
7resolution or under this Section. The Department shall have
8full power to administer and enforce this Section; to collect
9all taxes and penalties due hereunder; to dispose of taxes and
10penalties so collected in the manner hereinafter provided, and
11to determine all rights to credit memoranda, arising on account
12of the erroneous payment of tax or penalty hereunder. In the
13administration of, and compliance with, this Section, the
14Department and persons who are subject to this Section shall
15have the same rights, remedies, privileges, immunities, powers
16and duties, and be subject to the same conditions,
17restrictions, limitations, penalties and definitions of terms,
18and employ the same modes of procedure, as are prescribed in
19Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in
20respect to all provisions therein other than the State rate of
21tax), 2c, 3 (except as to the disposition of taxes and
22penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
235j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
24Retailers' Occupation Tax Act and Section 3-7 of the Uniform
25Penalty and Interest Act as fully as if those provisions were
26set forth herein.

 

 

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1    No municipality may impose a tax under this Section unless
2the municipality also imposes a tax at the same rate under
3Section 8-11-1.4 of this Code.
4    Persons subject to any tax imposed pursuant to the
5authority granted in this Section may reimburse themselves for
6their seller's tax liability hereunder by separately stating
7such tax as an additional charge, which charge may be stated in
8combination, in a single amount, with State tax which sellers
9are required to collect under the Use Tax Act, pursuant to such
10bracket schedules as the Department may prescribe.
11    Whenever the Department determines that a refund should be
12made under this Section to a claimant instead of issuing a
13credit memorandum, the Department shall notify the State
14Comptroller, who shall cause the order to be drawn for the
15amount specified, and to the person named, in such notification
16from the Department. Such refund shall be paid by the State
17Treasurer out of the non-home rule municipal retailers'
18occupation tax fund.
19    The Department shall forthwith pay over to the State
20Treasurer, ex officio, as trustee, all taxes and penalties
21collected hereunder.
22    As soon as possible after the first day of each month,
23beginning January 1, 2011, upon certification of the Department
24of Revenue, the Comptroller shall order transferred, and the
25Treasurer shall transfer, to the STAR Bonds Revenue Fund the
26local sales tax increment, as defined in the Innovation

 

 

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1Development and Economy Act, collected under this Section
2during the second preceding calendar month for sales within a
3STAR bond district.
4    After the monthly transfer to the STAR Bonds Revenue Fund,
5on or before the 25th day of each calendar month, the
6Department shall prepare and certify to the Comptroller the
7disbursement of stated sums of money to named municipalities,
8the municipalities to be those from which retailers have paid
9taxes or penalties hereunder to the Department during the
10second preceding calendar month. The amount to be paid to each
11municipality shall be the amount (not including credit
12memoranda) collected hereunder during the second preceding
13calendar month by the Department plus an amount the Department
14determines is necessary to offset any amounts which were
15erroneously paid to a different taxing body, and not including
16an amount equal to the amount of refunds made during the second
17preceding calendar month by the Department on behalf of such
18municipality, and not including any amount which the Department
19determines is necessary to offset any amounts which were
20payable to a different taxing body but were erroneously paid to
21the municipality, and not including any amounts that are
22transferred to the STAR Bonds Revenue Fund. Within 10 days
23after receipt, by the Comptroller, of the disbursement
24certification to the municipalities, provided for in this
25Section to be given to the Comptroller by the Department, the
26Comptroller shall cause the orders to be drawn for the

 

 

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1respective amounts in accordance with the directions contained
2in such certification.
3    For the purpose of determining the local governmental unit
4whose tax is applicable, a retail sale, by a producer of coal
5or other mineral mined in Illinois, is a sale at retail at the
6place where the coal or other mineral mined in Illinois is
7extracted from the earth. This paragraph does not apply to coal
8or other mineral when it is delivered or shipped by the seller
9to the purchaser at a point outside Illinois so that the sale
10is exempt under the Federal Constitution as a sale in
11interstate or foreign commerce.
12    Nothing in this Section shall be construed to authorize a
13municipality to impose a tax upon the privilege of engaging in
14any business which under the constitution of the United States
15may not be made the subject of taxation by this State.
16    When certifying the amount of a monthly disbursement to a
17municipality under this Section, the Department shall increase
18or decrease such amount by an amount necessary to offset any
19misallocation of previous disbursements. The offset amount
20shall be the amount erroneously disbursed within the previous 6
21months from the time a misallocation is discovered.
22    The Department of Revenue shall implement this amendatory
23Act of the 91st General Assembly so as to collect the tax on
24and after January 1, 2002.
25    As used in this Section, "municipal" and "municipality"
26means a city, village or incorporated town, including an

 

 

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1incorporated town which has superseded a civil township.
2    This Section shall be known and may be cited as the
3"Non-Home Rule Municipal Retailers' Occupation Tax Act".
4(Source: P.A. 99-217, eff. 7-31-15.)
 
5    (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)
6    Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
7Tax Act. The corporate authorities of a non-home rule
8municipality may impose a tax upon all persons engaged, in such
9municipality, in the business of making sales of service for
10expenditure for costs associated with the abatement of unsafe
11or dilapidated structures, on public infrastructure, or for
12property tax relief (the later two or both as defined in
13Section 8-11-1.2), or all such expenditures if approved by
14referendum as provided in Section 8-11-1.1, of the selling
15price of all tangible personal property transferred by such
16servicemen either in the form of tangible personal property or
17in the form of real estate as an incident to a sale of service.
18If the tax is approved by referendum on or after July 14, 2010
19(the effective date of Public Act 96-1057), the corporate
20authorities of a non-home rule municipality may, until December
2131, 2020, use the proceeds of the tax for expenditure on
22municipal operations, in addition to or in lieu of any
23expenditure for costs associated with the abatement of unsafe
24or dilapidated structures, on public infrastructure, or for
25property 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 or under the Service Occupation Tax Act
14shall permit such registrant to engage in a business which is
15taxable under any ordinance or resolution enacted pursuant to
16this Section without registering separately with the
17Department under such ordinance or resolution or under this
18Section. The Department shall have full power to administer and
19enforce this Section; to collect all taxes and penalties due
20hereunder; to dispose of taxes and penalties so collected in
21the manner hereinafter provided, and to determine all rights to
22credit memoranda arising on account of the erroneous payment of
23tax or penalty hereunder. In the administration of, and
24compliance with, this Section the Department and persons who
25are subject to this Section shall have the same rights,
26remedies, privileges, immunities, powers and duties, and be

 

 

HB5548- 13 -LRB099 16810 AWJ 41157 b

1subject to the same conditions, restrictions, limitations,
2penalties and definitions of terms, and employ the same modes
3of procedure, as are prescribed in Sections 1a-1, 2, 2a, 3
4through 3-50 (in respect to all provisions therein other than
5the State rate of tax), 4 (except that the reference to the
6State shall be to the taxing municipality), 5, 7, 8 (except
7that the jurisdiction to which the tax shall be a debt to the
8extent indicated in that Section 8 shall be the taxing
9municipality), 9 (except as to the disposition of taxes and
10penalties collected, and except that the returned merchandise
11credit for this municipal tax may not be taken against any
12State tax), 10, 11, 12 (except the reference therein to Section
132b of the Retailers' Occupation Tax Act), 13 (except that any
14reference to the State shall mean the taxing municipality), the
15first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
16Service Occupation Tax Act and Section 3-7 of the Uniform
17Penalty and Interest Act, as fully as if those provisions were
18set forth herein.
19    No municipality may impose a tax under this Section unless
20the municipality also imposes a tax at the same rate under
21Section 8-11-1.3 of this Code.
22    Persons subject to any tax imposed pursuant to the
23authority granted in this Section may reimburse themselves for
24their serviceman's tax liability hereunder by separately
25stating such tax as an additional charge, which charge may be
26stated in combination, in a single amount, with State tax which

 

 

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

 

 

HB5548- 15 -LRB099 16810 AWJ 41157 b

1servicemen have paid taxes or penalties hereunder to the
2Department during the second preceding calendar month. The
3amount to be paid to each municipality shall be the amount (not
4including credit memoranda) collected hereunder during the
5second preceding calendar month by the Department, and not
6including an amount equal to the amount of refunds made during
7the second preceding calendar month by the Department on behalf
8of such municipality, and not including any amounts that are
9transferred to the STAR Bonds Revenue Fund. Within 10 days
10after receipt, by the Comptroller, of the disbursement
11certification to the municipalities and the General Revenue
12Fund, provided for in this Section to be given to the
13Comptroller by the Department, the Comptroller shall cause the
14orders to be drawn for the respective amounts in accordance
15with the directions contained in such certification.
16    The Department of Revenue shall implement this amendatory
17Act of the 91st General Assembly so as to collect the tax on
18and after January 1, 2002.
19    Nothing in this Section shall be construed to authorize a
20municipality to impose a tax upon the privilege of engaging in
21any business which under the constitution of the United States
22may not be made the subject of taxation by this State.
23    As used in this Section, "municipal" or "municipality"
24means or refers to a city, village or incorporated town,
25including an incorporated town which has superseded a civil
26township.

 

 

HB5548- 16 -LRB099 16810 AWJ 41157 b

1    This Section shall be known and may be cited as the
2"Non-Home Rule Municipal Service Occupation Tax Act".
3(Source: P.A. 96-939, eff. 6-24-10; 96-1057, eff. 7-14-10;
497-333, eff. 8-12-11; 97-837, eff. 7-20-12.)
 
5    (65 ILCS 5/8-11-1.5)  (from Ch. 24, par. 8-11-1.5)
6    Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The
7corporate authorities of a non-home rule municipality may
8impose a tax upon the privilege of using, in such municipality,
9any item of tangible personal property which is purchased at
10retail from a retailer, and which is titled or registered with
11an agency of this State's government, based on the selling
12price of such tangible personal property, as "selling price" is
13defined in the Use Tax Act, for expenditure for costs
14associated with the abatement of unsafe or dilapidated
15structures, on public infrastructure, or for property tax
16relief (the latter two or both as defined in Section 8-11-1.2),
17or all such expenditures if approved by referendum as provided
18in Section 8-11-1.1. If the tax is approved by referendum on or
19after the effective date of this amendatory Act of the 96th
20General Assembly, the corporate authorities of a non-home rule
21municipality may, until December 31, 2020, use the proceeds of
22the tax for expenditure on municipal operations, in addition to
23or in lieu of any expenditure for costs associated with the
24abatement of unsafe or dilapidated structures, on public
25infrastructure, or for property tax relief. The tax imposed may

 

 

HB5548- 17 -LRB099 16810 AWJ 41157 b

1not be more than 1% and may be imposed only in 1/4% increments.
2Such tax shall be collected from persons whose Illinois address
3for title or registration purposes is given as being in such
4municipality. Such tax shall be collected by the municipality
5imposing such tax. A non-home rule municipality may not impose
6and collect the tax prior to January 1, 2002.
7    This Section shall be known and may be cited as the
8"Non-Home Rule Municipal Use Tax Act".
9(Source: P.A. 96-1057, eff. 7-14-10; 97-837, eff. 7-20-12.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.