Illinois General Assembly - Full Text of HB3859
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Full Text of HB3859  97th General Assembly

HB3859ham002 97TH GENERAL ASSEMBLY

Rep. Carol A. Sente

Filed: 3/22/2012

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 3859

2    AMENDMENT NO. ______. Amend House Bill 3859 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Counties Code is amended by changing
5Section 5-1014.3 as follows:
 
6    (55 ILCS 5/5-1014.3)
7    Sec. 5-1014.3. Agreements to share or rebate occupation
8taxes.
9    (a) On and after June 1, 2004, a county board shall not
10enter into any tax revenue sharing agreement, as defined in
11subsection (d) of this Section, to share or rebate any portion
12of retailers' occupation taxes generated by retail sales of
13tangible personal property if: (1) the tax on those retail
14sales, absent the agreement, would have been paid to another
15unit of local government; and (2) the retailer maintains,
16within that other unit of local government, a retail location

 

 

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1from which the tangible personal property is delivered to
2purchasers, or a warehouse from which the tangible personal
3property is delivered to purchasers. Any unit of local
4government denied retailers' occupation tax revenue because of
5a tax revenue sharing an agreement that violates this Section
6may file an action in circuit court against only the county.
7Any tax revenue sharing agreement entered into prior to June 1,
82004 is not affected by this amendatory Act of the 93rd General
9Assembly. Any unit of local government that prevails in the
10circuit court action is entitled to damages in the amount of
11the tax revenue it was denied as a result of the tax revenue
12sharing agreement, statutory interest, costs, reasonable
13attorney's fees, and an amount equal to 50% of the tax.
14    (b) On and after the effective date of this amendatory Act
15of the 93rd General Assembly, a home rule unit shall not enter
16into any tax revenue sharing agreement prohibited by this
17Section. This Section is a denial and limitation of home rule
18powers and functions under subsection (g) of Section 6 of
19Article VII of the Illinois Constitution.
20    (c) Any county that enters into a tax revenue sharing
21agreement must complete and submit a report by electronic
22filing to the Department of Revenue within 7 days after the
23execution of an agreement. Any county that has entered into a
24tax revenue sharing agreement before the effective date of this
25amendatory Act of the 97th General Assembly that has not been
26terminated or expired as of the effective date of this

 

 

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1amendatory Act of the 97th General Assembly, shall submit a
2report with respect to the agreements within 90 days after the
3effective date of this amendatory Act of the 97th General
4Assembly.
5    (d) "Tax revenue sharing agreement" means, without
6limitation:
7        (1) any agreement between the county and any person,
8    business, or agent that provides for the sharing,
9    refunding, or rebating of any portion of any retailers'
10    occupation tax collected by the State;
11        (2) any agreement between the county and an
12    intermediary or between an intermediary and a taxpayer for
13    the purpose of sharing, refunding, or rebating to any
14    taxpayer any portion of any retailers' occupation tax
15    collected by the State; or
16        (3) any amendment to a tax revenue sharing agreement,
17    including, but not limited to, a change in the terms of the
18    agreement or a change or addition of a taxpayer.
19    (e) The report described in this Section shall be made on a
20form to be supplied by the Department of Revenue and shall
21contain the following:
22        (1) the names of the county and the business entering
23    into the agreement;
24        (2) the location or locations of the business within
25    the county;
26        (3) the form shall also contain a statement, to be

 

 

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1    answered in the affirmative or negative, as to whether or
2    not the company maintains additional places of business in
3    the State other than those described pursuant to paragraph
4    (2);
5        (4) the terms of the agreement, including (i) the
6    manner in which the amount of any retailers' occupation tax
7    is to be shared, rebated, or refunded is to be determined
8    each year for the duration of the tax revenue sharing
9    agreement, (ii) the duration of the tax revenue sharing
10    agreement, and (iii) the name of any business who is not a
11    party to the agreement but who directly or indirectly
12    receives a share, refund, or rebate of the retailers'
13    occupation tax; and
14        (5) a copy of the tax revenue sharing agreement.
15    An updated report must be filed by the county within 7 days
16after the execution of any amendment made to a tax revenue
17sharing agreement.
18    Reports filed with the Department pursuant to this Section
19shall not constitute tax returns.
20(Source: P.A. 93-920, eff. 8-12-04.)
 
21    Section 10. The Illinois Municipal Code is amended by
22changing Section 8-11-21 as follows:
 
23    (65 ILCS 5/8-11-21)
24    Sec. 8-11-21. Tax revenue sharing agreements Agreements to

 

 

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1share or rebate occupation taxes.
2    (a) On and after June 1, 2004, the corporate authorities of
3a municipality shall not enter into any tax revenue sharing
4agreement,as defined in subsection (d) of this Section, to
5share or rebate any portion of retailers' occupation taxes
6generated by retail sales of tangible personal property if: (1)
7the tax on those retail sales, absent the agreement, would have
8been paid to another unit of local government; and (2) the
9retailer maintains, within that other unit of local government,
10a retail location from which the tangible personal property is
11delivered to purchasers, or a warehouse from which the tangible
12personal property is delivered to purchasers. Any unit of local
13government denied retailers' occupation tax revenue because of
14a tax revenue sharing an agreement that violates this Section
15may file an action in circuit court against only the
16municipality. Any tax revenue sharing agreement entered into
17prior to June 1, 2004 is not affected by this amendatory Act of
18the 93rd General Assembly. Any unit of local government that
19prevails in the circuit court action is entitled to damages in
20the amount of the tax revenue it was denied as a result of the
21tax revenue sharing agreement, statutory interest, costs,
22reasonable attorney's fees, and an amount equal to 50% of the
23tax.
24    (b) On and after the effective date of this amendatory Act
25of the 93rd General Assembly, a home rule unit shall not enter
26into any tax revenue sharing agreement prohibited by this

 

 

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1Section. This Section is a denial and limitation of home rule
2powers and functions under subsection (g) of Section 6 of
3Article VII of the Illinois Constitution.
4    (c) Any municipality that enters into a tax revenue sharing
5agreement must complete and submit a report by electronic
6filing to the Department of Revenue within 7 days after the
7execution of an agreement. Any municipality that has entered
8into a tax revenue sharing agreement before the effective date
9of this amendatory Act of the 97th General Assembly that has
10not been terminated or expired as of the effective date of this
11amendatory Act of the 97th General Assembly, shall submit a
12report with respect to the agreements within 90 days after the
13effective date of this amendatory Act of the 97th General
14Assembly.
15    (d) "Tax revenue sharing agreement" means, without
16limitation:
17        (1) any agreement between the municipality and any
18    person, business, or agent that provides for the sharing,
19    refunding, or rebating of any portion of any retailers'
20    occupation tax collected by the State;
21        (2) any agreement between the municipality and an
22    intermediary or between an intermediary and a taxpayer for
23    the purpose of sharing, refunding, or rebating to any
24    taxpayer any portion of any retailers' occupation tax
25    collected by the State; or
26        (3) any amendment to a tax revenue sharing agreement,

 

 

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1    including, but not limited to, a change in the terms of the
2    agreement or a change or addition of a taxpayer.
3    (e) The report described in this Section shall be made on a
4form to be supplied by the Department of Revenue and shall
5contain the following:
6        (1) the names of the municipality and the business
7    entering into the agreement;
8        (2) the location or locations of the business within
9    the municipality;
10        (3) the form shall also contain a statement, to be
11    answered in the affirmative or negative, as to whether or
12    not the company maintains additional places of business in
13    the State other than those described pursuant to paragraph
14    (2);
15        (4) the terms of the agreement, including (i) the
16    manner in which the amount of any retailers' occupation tax
17    is to be shared, rebated, or refunded is to be determined
18    each year for the duration of the tax revenue sharing
19    agreement, (ii) the duration of the tax revenue sharing
20    agreement, and (iii) the name of any business who is not a
21    party to the agreement but who directly or indirectly
22    receives a share, refund, or rebate of the retailers'
23    occupation tax; and
24        (5) a copy of the tax revenue sharing agreement.
25    An updated report must be filed by the municipality within
267 days after the execution of any amendment made to a tax

 

 

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1revenue sharing agreement.
2    Reports filed with the Department pursuant to this Section
3shall not constitute tax returns.
4(Source: P.A. 93-920, eff. 8-12-04.)
 
5    Section 90. The State Mandates Act is amended by adding
6Section 8.36 as follows:
 
7    (30 ILCS 805/8.36 new)
8    Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
9of this Act, no reimbursement by the State is required for the
10implementation of any mandate created by this amendatory Act of
11the 97th General Assembly.".