Illinois General Assembly - Full Text of SB1739
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Full Text of SB1739  102nd General Assembly

SB1739 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB1739

 

Introduced 2/26/2021, by Sen. Emil Jones, III

 

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 the corporate authorities of a non-home rule municipality may impose, by ordinance or resolution, a municipal retailers' occupation tax, municipal service occupation tax, or municipal use tax in addition to such taxes already imposed by referendum. Provides that the additional taxes may solely be used for costs incurred by the municipality for employer contributions to public employee pension funds pursuant to the Downstate Police Article, the Downstate Firefighter Article, the Illinois Municipal Retirement Fund (IMRF) Article, the Police Officers' Pension Investment Fund Article, or the Firefighters' Pension Investment Fund Article of the Illinois Pension Code. Provides that the additional taxes may not be more than 1% and may be imposed only in 1/4% increments.


LRB102 02848 AWJ 12856 b

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

 

 

A BILL FOR

 

SB1739LRB102 02848 AWJ 12856 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,
13impose by ordinance or resolution the tax authorized in
14Sections 8-11-1.3, 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
17electors of the municipality the question of whether the
18municipality shall impose such tax. Such question shall be
19certified by the municipal clerk to the election authority in
20accordance with Section 28-5 of the Election Code and shall be
21in a form in accordance 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

 

 

SB1739- 2 -LRB102 02848 AWJ 12856 b

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?
8    If a majority of the electors in the municipality voting
9upon the question vote in the affirmative, such tax shall be
10imposed.
11    Until January 1, 1992, an ordinance or resolution imposing
12the tax of not more than 1% hereunder or discontinuing the same
13shall be adopted and a certified copy thereof, together with a
14certification that the ordinance or resolution received
15referendum approval in the case of the imposition of such tax,
16filed with the Department of Revenue, on or before the first
17day of June, whereupon the Department shall proceed to
18administer and enforce the additional tax or to discontinue
19the tax, as the case may be, as of the first day of September
20next following such adoption and filing.
21    Beginning January 1, 1992 and through December 31, 1992,
22an ordinance or resolution imposing or discontinuing the tax
23hereunder shall be adopted and a certified copy thereof filed
24with the Department on or before the first day of July,
25whereupon the Department shall proceed to administer and
26enforce this Section as of the first day of October next

 

 

SB1739- 3 -LRB102 02848 AWJ 12856 b

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

 

 

SB1739- 4 -LRB102 02848 AWJ 12856 b

1received referendum approval in the case of the imposition of
2or increase in the rate of such tax, shall be filed with the
3Department of Revenue, either (i) on or before the first day of
4May, whereupon the Department shall proceed to administer and
5enforce this Section as of the first day of July next following
6the adoption and filing; or (ii) on or before the first day of
7October, whereupon the Department shall proceed to administer
8and enforce this Section as of the first day of January next
9following the adoption and filing.
10    Notwithstanding any provision in this Section to the
11contrary, if, in a non-home rule municipality with more than
12150,000 but fewer than 200,000 inhabitants, as determined by
13the last preceding federal decennial census, an ordinance or
14resolution under this Section imposes or discontinues a tax or
15changes the tax rate as of July 1, 2007, then that ordinance or
16resolution, together with a certification that the ordinance
17or resolution received referendum approval in the case of the
18imposition of the tax, must be adopted and a certified copy of
19that ordinance or resolution must be filed with the Department
20on or before May 15, 2007, whereupon the Department shall
21proceed to administer and enforce this Section as of July 1,
222007.
23    Notwithstanding any provision in this Section to the
24contrary, if, in a non-home rule municipality with more than
256,500 but fewer than 7,000 inhabitants, as determined by the
26last preceding federal decennial census, an ordinance or

 

 

SB1739- 5 -LRB102 02848 AWJ 12856 b

1resolution under this Section imposes or discontinues a tax or
2changes the tax rate on or before May 20, 2009, then that
3ordinance or resolution, together with a certification that
4the ordinance or resolution received referendum approval in
5the case of the imposition of the tax, must be adopted and a
6certified copy of that ordinance or resolution must be filed
7with the Department on or before May 20, 2009, whereupon the
8Department shall proceed to administer and enforce this
9Section as of July 1, 2009.
10    A non-home rule municipality may file a certified copy of
11an ordinance or resolution, with a certification that the
12ordinance or resolution received referendum approval in the
13case of the imposition of the tax, with the Department of
14Revenue, as required under this Section, only after October 2,
152000.
16    The tax authorized by this Section may not be more than 1%
17and may be imposed only in 1/4% increments.
18    (c) In addition to the tax authorized by this Section, the
19corporate authorities of a non-home rule municipality may also
20impose a tax authorized in Sections 8-11-1.3, 8-11-1.4, and
218-11-1.5 of this Division by ordinance or resolution. The tax
22authorized by this subsection may not be more than 1% and may
23be imposed only in 1/4% increments. Proceeds from such a tax
24authorized by this subsection shall be used solely for costs
25incurred by the municipality for employer contributions to
26public employee pension funds pursuant to Article 3, Article

 

 

SB1739- 6 -LRB102 02848 AWJ 12856 b

14, Article 7, Article 22B, or Article 22C of the Illinois
2Pension Code.
3(Source: P.A. 98-584, eff. 8-27-13.)
 
4    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
5    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
6Occupation Tax Act. The corporate authorities of a non-home
7rule municipality may impose a tax upon all persons engaged in
8the business of selling tangible personal property, other than
9on an item of tangible personal property which is titled and
10registered by an agency of this State's Government, at retail
11in the municipality for expenditure on public infrastructure
12or for property tax relief or both as defined in Section
138-11-1.2 if approved by referendum as provided in Section
148-11-1.1, of the gross receipts from such sales made in the
15course of such business. If the tax is approved by referendum
16on or after July 14, 2010 (the effective date of Public Act
1796-1057), the corporate authorities of a non-home rule
18municipality may, until July 1, 2030, use the proceeds of the
19tax for expenditure on municipal operations, in addition to or
20in lieu of any expenditure on public infrastructure or for
21property tax relief. If the tax is approved by ordinance or
22resolution under subsection (c) of Section 8-11-1.1, the
23corporate authorities of a non-home rule municipality must use
24the proceeds of the tax solely for costs incurred by the
25municipality for employer contributions to public employee

 

 

SB1739- 7 -LRB102 02848 AWJ 12856 b

1pensions funds pursuant to Article 3, Article 4, Article 7,
2Article 22B, or Article 22C of the Illinois Pension Code. The
3tax imposed may not be more than 1% and may be imposed only in
41/4% increments. The tax may not be imposed on tangible
5personal property taxed at the 1% rate under the Retailers'
6Occupation Tax Act. Beginning December 1, 2019, this tax is
7not imposed on sales of aviation fuel unless the tax revenue is
8expended for airport-related purposes. If a municipality does
9not have an airport-related purpose to which it dedicates
10aviation fuel tax revenue, then aviation fuel is excluded from
11the tax. Each municipality must comply with the certification
12requirements for airport-related purposes under Section 2-22
13of the Retailers' Occupation Tax Act. For purposes of this
14Section, "airport-related purposes" has the meaning ascribed
15in Section 6z-20.2 of the State Finance Act. This exclusion
16for aviation fuel only applies for so long as the revenue use
17requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
18binding on the municipality. The tax imposed by a municipality
19pursuant to this Section and all civil penalties that may be
20assessed as an incident thereof shall be collected and
21enforced by the State Department of Revenue. The certificate
22of registration which is issued by the Department to a
23retailer under the Retailers' Occupation Tax Act shall permit
24such retailer to engage in a business which is taxable under
25any ordinance or resolution enacted pursuant to this Section
26without registering separately with the Department under such

 

 

SB1739- 8 -LRB102 02848 AWJ 12856 b

1ordinance or resolution or under this Section. The Department
2shall have full power to administer and enforce this Section;
3to collect all taxes and penalties due hereunder; to dispose
4of taxes and penalties so collected in the manner hereinafter
5provided, and to determine all rights to credit memoranda,
6arising on account of the erroneous payment of tax or penalty
7hereunder. In the administration of, and compliance with, this
8Section, the Department and persons who are subject to this
9Section shall have the same rights, remedies, privileges,
10immunities, powers and duties, and be subject to the same
11conditions, restrictions, limitations, penalties and
12definitions of terms, and employ the same modes of procedure,
13as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j,
142 through 2-65 (in respect to all provisions therein other
15than the State rate of tax), 2c, 3 (except as to the
16disposition of taxes and penalties collected, and except that
17the retailer's discount is not allowed for taxes paid on
18aviation fuel that are subject to the revenue use requirements
19of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
205d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
2110, 11, 12 and 13 of the Retailers' Occupation Tax Act and
22Section 3-7 of the Uniform Penalty and Interest Act as fully as
23if those provisions were set forth herein.
24    No municipality may impose a tax under this Section unless
25the municipality also imposes a tax at the same rate under
26Section 8-11-1.4 of this Code.

 

 

SB1739- 9 -LRB102 02848 AWJ 12856 b

1    Persons subject to any tax imposed pursuant to the
2authority granted in this Section may reimburse themselves for
3their seller's tax liability hereunder by separately stating
4such tax as an additional charge, which charge may be stated in
5combination, in a single amount, with State tax which sellers
6are required to collect under the Use Tax Act, pursuant to such
7bracket schedules as the Department may prescribe.
8    Whenever the Department determines that a refund should be
9made under this Section to a claimant instead of issuing a
10credit memorandum, the Department shall notify the State
11Comptroller, who shall cause the order to be drawn for the
12amount specified, and to the person named, in such
13notification from the Department. Such refund shall be paid by
14the State Treasurer out of the non-home rule municipal
15retailers' occupation tax fund or the Local Government
16Aviation Trust Fund, as appropriate.
17    Except as otherwise provided, the Department shall
18forthwith pay over to the State Treasurer, ex officio, as
19trustee, all taxes and penalties collected hereunder for
20deposit into the Non-Home Rule Municipal Retailers' Occupation
21Tax Fund. Taxes and penalties collected on aviation fuel sold
22on or after December 1, 2019, shall be immediately paid over by
23the Department to the State Treasurer, ex officio, as trustee,
24for deposit into the Local Government Aviation Trust Fund. The
25Department shall only pay moneys into the Local Government
26Aviation Trust Fund under this Section for so long as the

 

 

SB1739- 10 -LRB102 02848 AWJ 12856 b

1revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
247133 are binding on the municipality.
3    As soon as possible after the first day of each month,
4beginning January 1, 2011, upon certification of the
5Department of Revenue, the Comptroller shall order
6transferred, and the Treasurer shall transfer, to the STAR
7Bonds Revenue Fund the local sales tax increment, as defined
8in the Innovation Development and Economy Act, collected under
9this Section during the second preceding calendar month for
10sales within a STAR bond district.
11    After the monthly transfer to the STAR Bonds Revenue Fund,
12on or before the 25th day of each calendar month, the
13Department shall prepare and certify to the Comptroller the
14disbursement of stated sums of money to named municipalities,
15the municipalities to be those from which retailers have paid
16taxes or penalties hereunder to the Department during the
17second preceding calendar month. The amount to be paid to each
18municipality shall be the amount (not including credit
19memoranda and not including taxes and penalties collected on
20aviation fuel sold on or after December 1, 2019) collected
21hereunder during the second preceding calendar month by the
22Department plus an amount the Department determines is
23necessary to offset any amounts which were erroneously paid to
24a different taxing body, and not including an amount equal to
25the amount of refunds made during the second preceding
26calendar month by the Department on behalf of such

 

 

SB1739- 11 -LRB102 02848 AWJ 12856 b

1municipality, and not including any amount which the
2Department determines is necessary to offset any amounts which
3were payable to a different taxing body but were erroneously
4paid to the municipality, and not including any amounts that
5are transferred to the STAR Bonds Revenue Fund, less 1.5% of
6the remainder, which the Department shall transfer into the
7Tax Compliance and Administration Fund. The Department, at the
8time of each monthly disbursement to the municipalities, shall
9prepare and certify to the State Comptroller the amount to be
10transferred into the Tax Compliance and Administration Fund
11under this Section. Within 10 days after receipt, by the
12Comptroller, of the disbursement certification to the
13municipalities and the Tax Compliance and Administration Fund
14provided for in this Section to be given to the Comptroller by
15the Department, the Comptroller shall cause the orders to be
16drawn for the respective amounts in accordance with the
17directions contained in such certification.
18    For the purpose of determining the local governmental unit
19whose tax is applicable, a retail sale, by a producer of coal
20or other mineral mined in Illinois, is a sale at retail at the
21place where the coal or other mineral mined in Illinois is
22extracted from the earth. This paragraph does not apply to
23coal or other mineral when it is delivered or shipped by the
24seller to the purchaser at a point outside Illinois so that the
25sale is exempt under the Federal Constitution as a sale in
26interstate or foreign commerce.

 

 

SB1739- 12 -LRB102 02848 AWJ 12856 b

1    Nothing in this Section shall be construed to authorize a
2municipality to impose a tax upon the privilege of engaging in
3any business which under the constitution of the United States
4may not be made the subject of taxation by this State.
5    When certifying the amount of a monthly disbursement to a
6municipality under this Section, the Department shall increase
7or decrease such amount by an amount necessary to offset any
8misallocation of previous disbursements. The offset amount
9shall be the amount erroneously disbursed within the previous
106 months from the time a misallocation is discovered.
11    The Department of Revenue shall implement Public Act
1291-649 so as to collect the tax on and after January 1, 2002.
13    As used in this Section, "municipal" and "municipality"
14mean a city, village, or incorporated town, including an
15incorporated town which has superseded a civil township.
16    This Section shall be known and may be cited as the
17Non-Home Rule Municipal Retailers' Occupation Tax Act.
18(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
19100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-47, eff.
201-1-20; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19.)
 
21    (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)
22    Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
23Tax Act. The corporate authorities of a non-home rule
24municipality may impose a tax upon all persons engaged, in
25such municipality, in the business of making sales of service

 

 

SB1739- 13 -LRB102 02848 AWJ 12856 b

1for expenditure on public infrastructure or for property tax
2relief or both as defined in Section 8-11-1.2 if approved by
3referendum as provided in Section 8-11-1.1, of the selling
4price of all tangible personal property transferred by such
5servicemen either in the form of tangible personal property or
6in the form of real estate as an incident to a sale of service.
7If the tax is approved by referendum on or after July 14, 2010
8(the effective date of Public Act 96-1057), the corporate
9authorities of a non-home rule municipality may, until
10December 31, 2020, use the proceeds of the tax for expenditure
11on municipal operations, in addition to or in lieu of any
12expenditure on public infrastructure or for property tax
13relief. If the tax is approved by ordinance or resolution
14under subsection (c) of Section 8-11-1.1, the corporate
15authorities of a non-home rule municipality must use the
16proceeds of the tax solely for costs incurred by the
17municipality for employer contributions to public employee
18pensions funds pursuant to Article 3, Article 4, Article 7,
19Article 22B, or Article 22C of the Illinois Pension Code. The
20tax imposed may not be more than 1% and may be imposed only in
211/4% increments. The tax may not be imposed on tangible
22personal property taxed at the 1% rate under the Service
23Occupation Tax Act. Beginning December 1, 2019, this tax is
24not imposed on sales of aviation fuel unless the tax revenue is
25expended for airport-related purposes. If a municipality does
26not have an airport-related purpose to which it dedicates

 

 

SB1739- 14 -LRB102 02848 AWJ 12856 b

1aviation fuel tax revenue, then aviation fuel is excluded from
2the tax. Each municipality must comply with the certification
3requirements for airport-related purposes under Section 2-22
4of the Retailers' Occupation Tax Act. For purposes of this
5Section, "airport-related purposes" has the meaning ascribed
6in Section 6z-20.2 of the State Finance Act. This exclusion
7for aviation fuel only applies for so long as the revenue use
8requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
9binding on the municipality. The tax imposed by a municipality
10pursuant to this Section and all civil penalties that may be
11assessed as an incident thereof shall be collected and
12enforced by the State Department of Revenue. The certificate
13of registration which is issued by the Department to a
14retailer under the Retailers' Occupation Tax Act or under the
15Service Occupation Tax Act shall permit such registrant to
16engage in a business which is taxable under any ordinance or
17resolution enacted pursuant to this Section without
18registering separately with the Department under such
19ordinance or resolution or under this Section. The Department
20shall have full power to administer and enforce this Section;
21to collect all taxes and penalties due hereunder; to dispose
22of taxes and penalties so collected in the manner hereinafter
23provided, and to determine all rights to credit memoranda
24arising on account of the erroneous payment of tax or penalty
25hereunder. In the administration of, and compliance with, this
26Section the Department and persons who are subject to this

 

 

SB1739- 15 -LRB102 02848 AWJ 12856 b

1Section shall have the same rights, remedies, privileges,
2immunities, powers and duties, and be subject to the same
3conditions, restrictions, limitations, penalties and
4definitions of terms, and employ the same modes of procedure,
5as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
6respect to all provisions therein other than the State rate of
7tax), 4 (except that the reference to the State shall be to the
8taxing municipality), 5, 7, 8 (except that the jurisdiction to
9which the tax shall be a debt to the extent indicated in that
10Section 8 shall be the taxing municipality), 9 (except as to
11the disposition of taxes and penalties collected, and except
12that the returned merchandise credit for this municipal tax
13may not be taken against any State tax, and except that the
14retailer's discount is not allowed for taxes paid on aviation
15fuel that are subject to the revenue use requirements of 49
16U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except the
17reference therein to Section 2b of the Retailers' Occupation
18Tax Act), 13 (except that any reference to the State shall mean
19the taxing municipality), the first paragraph of Section 15,
2016, 17, 18, 19 and 20 of the Service Occupation Tax Act and
21Section 3-7 of the Uniform Penalty and Interest Act, as fully
22as if those provisions were set forth herein.
23    No municipality may impose a tax under this Section unless
24the municipality also imposes a tax at the same rate under
25Section 8-11-1.3 of this Code.
26    Persons subject to any tax imposed pursuant to the

 

 

SB1739- 16 -LRB102 02848 AWJ 12856 b

1authority granted in this Section may reimburse themselves for
2their serviceman's tax liability hereunder by separately
3stating such tax as an additional charge, which charge may be
4stated in combination, in a single amount, with State tax
5which servicemen are authorized to collect under the Service
6Use Tax Act, pursuant to such bracket schedules as the
7Department may prescribe.
8    Whenever the Department determines that a refund should be
9made under this Section to a claimant instead of issuing
10credit memorandum, the Department shall notify the State
11Comptroller, who shall cause the order to be drawn for the
12amount specified, and to the person named, in such
13notification from the Department. Such refund shall be paid by
14the State Treasurer out of the municipal retailers' occupation
15tax fund or the Local Government Aviation Trust Fund, as
16appropriate.
17    Except as otherwise provided in this paragraph, the
18Department shall forthwith pay over to the State Treasurer, ex
19officio, as trustee, all taxes and penalties collected
20hereunder for deposit into the municipal retailers' occupation
21tax fund. Taxes and penalties collected on aviation fuel sold
22on or after December 1, 2019, shall be immediately paid over by
23the Department to the State Treasurer, ex officio, as trustee,
24for deposit into the Local Government Aviation Trust Fund. The
25Department shall only pay moneys into the Local Government
26Aviation Trust Fund under this Section for so long as the

 

 

SB1739- 17 -LRB102 02848 AWJ 12856 b

1revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
247133 are binding on the municipality.
3    As soon as possible after the first day of each month,
4beginning January 1, 2011, upon certification of the
5Department of Revenue, the Comptroller shall order
6transferred, and the Treasurer shall transfer, to the STAR
7Bonds Revenue Fund the local sales tax increment, as defined
8in the Innovation Development and Economy Act, collected under
9this Section during the second preceding calendar month for
10sales within a STAR bond district.
11    After the monthly transfer to the STAR Bonds Revenue Fund,
12on or before the 25th day of each calendar month, the
13Department shall prepare and certify to the Comptroller the
14disbursement of stated sums of money to named municipalities,
15the municipalities to be those from which suppliers and
16servicemen have paid taxes or penalties hereunder to the
17Department during the second preceding calendar month. The
18amount to be paid to each municipality shall be the amount (not
19including credit memoranda and not including taxes and
20penalties collected on aviation fuel sold on or after December
211, 2019) collected hereunder during the second preceding
22calendar month by the Department, and not including an amount
23equal to the amount of refunds made during the second
24preceding calendar month by the Department on behalf of such
25municipality, and not including any amounts that are
26transferred to the STAR Bonds Revenue Fund, less 1.5% of the

 

 

SB1739- 18 -LRB102 02848 AWJ 12856 b

1remainder, which the Department shall transfer into the Tax
2Compliance and Administration Fund. The Department, at the
3time of each monthly disbursement to the municipalities, shall
4prepare and certify to the State Comptroller the amount to be
5transferred into the Tax Compliance and Administration Fund
6under this Section. Within 10 days after receipt, by the
7Comptroller, of the disbursement certification to the
8municipalities, the General Revenue Fund, and the Tax
9Compliance and Administration Fund provided for in this
10Section to be given to the Comptroller by the Department, the
11Comptroller shall cause the orders to be drawn for the
12respective amounts in accordance with the directions contained
13in such certification.
14    The Department of Revenue shall implement Public Act
1591-649 so as to collect the tax on and after January 1, 2002.
16    Nothing in this Section shall be construed to authorize a
17municipality to impose a tax upon the privilege of engaging in
18any business which under the constitution of the United States
19may not be made the subject of taxation by this State.
20    As used in this Section, "municipal" or "municipality"
21means or refers to a city, village or incorporated town,
22including an incorporated town which has superseded a civil
23township.
24    This Section shall be known and may be cited as the
25"Non-Home Rule Municipal Service Occupation Tax Act".
26(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;

 

 

SB1739- 19 -LRB102 02848 AWJ 12856 b

1100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff.
27-12-19; 101-604, eff. 12-13-19.)
 
3    (65 ILCS 5/8-11-1.5)  (from Ch. 24, par. 8-11-1.5)
4    Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The
5corporate authorities of a non-home rule municipality may
6impose 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 with an agency of this State's government, based on
10the selling price of such tangible personal property, as
11"selling price" is defined in the Use Tax Act, for expenditure
12on public infrastructure or for property tax relief or both as
13defined in Section 8-11-1.2, if approved by referendum as
14provided in Section 8-11-1.1. If the tax is approved by
15referendum on or after the effective date of this amendatory
16Act of the 96th General Assembly, the corporate authorities of
17a non-home rule municipality may, until December 31, 2020, use
18the proceeds of the tax for expenditure on municipal
19operations, in addition to or in lieu of any expenditure on
20public infrastructure or for property tax relief. If the tax
21is approved by ordinance or resolution under subsection (c) of
22Section 8-11-1.1, the corporate authorities of a non-home rule
23municipality must use the proceeds of the tax solely for costs
24incurred by the municipality for employer contributions to
25public employee pensions funds pursuant to Article 3, Article

 

 

SB1739- 20 -LRB102 02848 AWJ 12856 b

14, Article 7, Article 22B, or Article 22C of the Illinois
2Pension Code. The tax imposed may not be more than 1% and may
3be imposed only in 1/4% increments. Such tax shall be
4collected from persons whose Illinois address for title or
5registration purposes is given as being in such municipality.
6Such tax shall be collected by the municipality imposing such
7tax. A non-home rule municipality may not impose and collect
8the tax prior to January 1, 2002.
9    This Section shall be known and may be cited as the
10"Non-Home Rule Municipal Use Tax Act".
11(Source: P.A. 96-1057, eff. 7-14-10; 97-837, eff. 7-20-12.)