SB1405 98TH GENERAL ASSEMBLY

LRB098 04069 HLH 34092 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1405

Introduced 2/6/2013, by Sen. Iris Y. Martinez

SYNOPSIS AS INTRODUCED:

35 ILCS 720/1

from Ch. 120, par. 1901

Amends the Local Tax Collection Act. Provides that the amount to be paid to each municipality or county under the Act shall not include credit memoranda and shall not include the following amounts: (i) an amount equal to the amount of refunds made during the second preceding calendar month by the Department of behalf of such county or municipality; (ii) an amount the Department determines is necessary to offset any amounts which were erroneously paid to a different taxing body; and (iii) any amount which the Department determines is necessary to offset any amounts which are payable to a different taxing body but were erroneously paid to the municipality or county. Provides that the Comptroller shall issue orders for payment within 10 (instead of 7) days after receiving the Department's certification. Provides that 2% of the amounts paid to each municipality or county (or a greater amount as specified in an agreement between the Department and the municipality or county) shall be deposited into the Tax Compliance and Administration Fund to cover the costs incurred by the Department in administering and enforcing the Act (now, 2% is deposited into the General Revenue Fund). Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Local Tax Collection Act is amended by changing Section 1 as follows:

(35 ILCS 720/1) (from Ch. 120, par. 1901)

Sec. 1. (a) The Department of Revenue and any county or municipality may agree to the Department's collecting, and transmitting back to such county or municipality, any tax lawfully imposed by that county or municipality, the subject of which is similar to that of a tax imposed by the State and collected by the Department of Revenue, unless the General Assembly has specifically required a different method of collection for such tax. However, the Department may not enter into a contract with any municipality or county pursuant to this Act for the collection of any tax based on the sale or use of tangible personal property generally, not including taxes based only on the sale or use of specifically limited kinds of tangible personal property, unless the municipal or county ordinance imposes a sales or use tax which is substantively identical to and which contains the same exemptions as the taxes imposed by the municipalities' or counties' ordinances authorized by the Municipal or County Retailers' Occupation Tax Act or the Municipal or County Use Tax as interpreted by the Department through its regulations as those Acts and as those regulations may from time to time be amended.

(b) Regarding the collection of a tax pursuant to this Section, the Department and any person subject to a tax collected by the Department pursuant to this Section shall, as much as practicable, have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties, definitions of terms and procedures, as those set forth in the Act imposing the State tax, the subject of which is similar to the tax being collected by the Department pursuant to this Section. The Department and county or municipality shall specifically agree in writing to such rights, remedies, privileges, immunities, powers, duties, conditions, restrictions, limitations, penalties, definitions of terms and procedures, as well as any other terms deemed necessary or advisable. All terms so agreed upon shall be incorporated into an ordinance of such county or municipality, and the Department shall not collect the tax pursuant to this Section until such ordinance takes effect.

(c) (1) The Department shall forthwith pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected hereunder. On or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the disbursement of stated sums of money to named cities and counties from which retailers or other taxpayers have paid taxes or penalties hereunder to the Department during the second preceding calendar month.

(i) The an amount to be paid to each county and municipality, which shall equal the taxes and penalties collected by the Department for such county or municipality pursuant to this Section during the second preceding calendar month, not including credit memoranda, and not including the following amounts: (i) an amount equal to the amount of refunds made during the second preceding calendar month by the Department of behalf of such county or municipality; (ii) an amount the Department determines is necessary to offset any amounts which were erroneously paid to a different taxing body; and (iii) any amount which the Department determines is necessary to offset any amounts which are payable to a different taxing body but were erroneously paid to the municipality or county, less 2% of the balance, or any greater amount of the balance as determined in the agreement between the Department and the county or municipality required under this Section, which sum shall be retained by the State Treasurer to cover the costs incurred by the Department in administering and enforcing the provisions of this Section, as provided herein total amount of taxes and penalties collected by the Department for such county or municipality pursuant to this Section or the actual cost of collection of such taxes and penalties determined pursuant to the agreement described in subsection (b), whichever is less, which shall be retained by the State; and

(ii) With respect to the total amount to be retained by the State Treasurer pursuant to subparagraph (i), the Department, at the time of each monthly disbursement to the counties and municipalities, shall prepare and certify to the Comptroller the amount so retained by the State Treasurer, which shall be deposited such amount to be deposited into the Tax Compliance and Administration Fund General Revenue Fund of the State treasury and used by the Department, subject to appropriation, to cover the costs incurred by the Department in collecting such taxes and penalties.

(2) Within 10 7 days after receiving the certifications described in paragraph (1), the Comptroller shall issue orders for payment of the amounts specified in subparagraph (i) of paragraph (1).

(d) Any home rule unit of local government which imposes a tax substantially similar to a State imposed tax, or which imposes a tax which is intended to be collected from a retail purchaser of goods or services at the same time a similar State tax is also collected, must file a copy of the ordinance imposing the tax with the Department within 10 days after its passage. No such ordinance shall become effective until it is so filed. Any home rule unit of local government which has enacted such an ordinance prior to the effective date of this Act shall file a copy of such ordinance with the Department within 90 days after the effective date of this Act.

(e) It is declared to be the law of this State, pursuant to paragraph (g) of Section 6 of Article VII of the Illinois Constitution, that this amendatory Act of 1988 is a denial of the power of a home rule unit to fail to comply with the requirements of paragraphs (d) and (e) of this Section.

(Source: P.A. 85-1215.)

Section 99. Effective date. This Act takes effect upon becoming law.