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

HB3859ham004 97TH GENERAL ASSEMBLY

Rep. Lisa M. Dugan

Filed: 3/26/2012

 

 


 

 


 
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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 agreement to share or rebate any portion of
11retailers' occupation taxes generated by retail sales of
12tangible personal property if: (1) the tax on those retail
13sales, absent the agreement, would have been paid to another
14unit of local government; and (2) the retailer maintains,
15within that other unit of local government, a retail location
16from which the tangible personal property is delivered to

 

 

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1purchasers, or a warehouse from which the tangible personal
2property is delivered to purchasers. Any unit of local
3government denied retailers' occupation tax revenue because of
4an agreement that violates this Section may file an action in
5circuit court against only the county. Any agreement entered
6into prior to June 1, 2004 is not affected by this amendatory
7Act of the 93rd General Assembly. Any unit of local government
8that prevails in the circuit court action is entitled to
9damages in the amount of the tax revenue it was denied as a
10result of the agreement, statutory interest, costs, reasonable
11attorney's fees, and an amount equal to 50% of the tax.
12    (b) On and after the effective date of this amendatory Act
13of the 93rd General Assembly, a home rule unit shall not enter
14into any agreement prohibited by subsection (a) of this
15Section. This Section is a denial and limitation of home rule
16powers and functions under subsection (g) of Section 6 of
17Article VII of the Illinois Constitution.
18    (c) On and after July 1, 2012, a county board shall not
19enter into any tax revenue sharing agreement, as defined in
20subsection (d) of this Section, if: (1) the tax on those retail
21sales, absent the agreement, would have been paid to another
22unit of local government; and (2) the retailer maintains,
23within that other unit of local government, a retail location
24from which the tangible personal property is delivered to
25purchasers, or a warehouse from which the tangible personal
26property is delivered to purchasers. Any unit of local

 

 

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1government denied retailers' occupation tax revenue because of
2a tax revenue sharing agreement that violates this Section may
3file an action in circuit court against only the county. Any
4tax revenue sharing agreement entered into prior to July 1,
52012 is not affected by this amendatory Act of the 97th General
6Assembly. Any unit of local government that prevails in the
7circuit court action is entitled to damages in the amount of
8the tax revenue it was denied as a result of the tax revenue
9sharing agreement, statutory interest, costs, reasonable
10attorney's fees, and an amount equal to 50% of the tax. Any
11county that enters into a tax revenue sharing agreement must
12complete and submit a report by electronic filing to the
13Department of Revenue within 7 days after the execution of an
14agreement. Any county that has entered into a tax revenue
15sharing agreement before the effective date of this amendatory
16Act of the 97th General Assembly that has not been terminated
17or expired as of the effective date of this amendatory Act of
18the 97th General Assembly, shall submit a report with respect
19to the agreements within 90 days after the effective date of
20this amendatory Act of the 97th General Assembly.
21    (d) "Tax revenue sharing agreement" means, without 7 days
22after the execution of any amendment made to a tax limitation:
23        (1) any agreement between the county and any person,
24    business, or agent that provides for the sharing,
25    refunding, or rebating of any portion of any retailers'
26    occupation tax collected by the State;

 

 

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

 

 

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1    party to the agreement but who directly or indirectly
2    receives a share, refund, or rebate of the retailers'
3    occupation tax; and
4        (5) a copy of the tax revenue sharing agreement.
5    An updated report must be filed by the county within 7 days
6after the execution of any amendment made to a tax revenue
7sharing agreement.
8    Reports filed with the Department pursuant to this Section
9shall not constitute tax returns. But to the extent the
10Department is allowed or required by law to release any report
11or information provided to it by this Section, prior to any
12such release the Department shall remove any sales or other
13financial data provided that is identified with a specific
14retailer or seller.
15    (f) On and after July 1, 2012 a home rule unit shall not
16enter into any tax revenue sharing agreement prohibited by
17Subsection (c) of this Section. This Section is a denial and
18limitation of home rule powers and functions under subsection
19(g) of Section 6 of Article VII of the Illinois Constitution.
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 agreement to share or
4rebate any portion of retailers' occupation taxes generated by
5retail sales of tangible personal property if: (1) the tax on
6those retail sales, absent the agreement, would have been paid
7to another unit of local government; and (2) the retailer
8maintains, within that other unit of local government, a retail
9location from which the tangible personal property is delivered
10to purchasers, or a warehouse from which the tangible personal
11property is delivered to purchasers. Any unit of local
12government denied retailers' occupation tax revenue because of
13an agreement that violates this Section may file an action in
14circuit court against only the municipality. Any agreement
15entered into prior to June 1, 2004 is not affected by this
16amendatory Act of the 93rd General Assembly. Any unit of local
17government that prevails in the circuit court action is
18entitled to damages in the amount of the tax revenue it was
19denied as a result of the agreement, statutory interest, costs,
20reasonable attorney's fees, and an amount equal to 50% of the
21tax.
22    (b) On and after the effective date of this amendatory Act
23of the 93rd General Assembly, a home rule unit shall not enter
24into any agreement prohibited by this Section. This Section is
25a denial and limitation of home rule powers and functions under
26subsection (g) of Section 6 of Article VII of the Illinois

 

 

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1Constitution.
2    (c) On and after July 1, 2012, the corporate authorities of
3a municipality shall not enter into any tax revenue sharing
4agreement, as defined in subsection (d) of this Section, if:
5(1) the tax on those retail sales, absent the agreement, would
6have been paid to another unit of local government; and (2) the
7retailer maintains, within that other unit of local government,
8a retail location from which the tangible personal property is
9delivered to purchasers, or a warehouse from which the tangible
10personal property is delivered to purchasers. Any unit of local
11government denied retailers' occupation tax revenue because of
12a tax revenue sharing agreement that violates this Section may
13file an action in circuit court against only the municipality.
14Any tax revenue sharing agreement entered into prior to July 1,
152012 is not affected by this amendatory Act of the 97th General
16Assembly. Any unit of local government that prevails in the
17circuit court action is entitled to damages in the amount of
18the tax revenue it was denied as a result of the tax revenue
19sharing agreement, statutory interest, costs, reasonable
20attorney's fees, and an amount equal to 50% of the tax.
21    Any municipality that enters into a tax revenue sharing
22agreement must complete and submit a report by electronic
23filing to the Department of Revenue within 7 days after the
24execution of an agreement. Any municipality that has entered
25into a tax revenue sharing agreement before the effective date
26of this amendatory Act of the 97th General Assembly that has

 

 

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

 

 

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1        (3) the form shall also contain a statement, to be
2    answered in the affirmative or negative, as to whether or
3    not the company maintains additional places of business in
4    the State other than those described pursuant to paragraph
5    (2);
6        (4) the terms of the agreement, including (i) the
7    manner in which the amount of any retailers' occupation tax
8    is to be shared, rebated, or refunded is to be determined
9    each year for the duration of the tax revenue sharing
10    agreement, (ii) the duration of the tax revenue sharing
11    agreement, and (iii) the name of any business who is not a
12    party to the agreement but who directly or indirectly
13    receives a share, refund, or rebate of the retailers'
14    occupation tax; and
15        (5) a copy of the tax revenue sharing agreement.
16    An updated report must be filed by the municipality within
17revenue sharing agreement.
18    Reports filed with the Department pursuant to this Section
19shall not constitute tax returns. But to the extent the
20Department is allowed or required by law to release any report
21or information provided to it by this Section, prior to any
22such release the Department shall remove any sales or other
23financial data provided that is identified with a specific
24retailer or seller.
25    (f) On and after July 1, 2012 a home rule unit shall not
26enter into any tax revenue sharing agreement prohibited by

 

 

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1Subsection (c) of this Section. This Section is a denial and
2limitation of home rule powers and functions under subsection
3(g) of Section 6 of Article VII of the Illinois Constitution.
4(Source: P.A. 93-920, eff. 8-12-04.)
 
5    Section 15. 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
98 of this Act, no reimbursement by the State is required for
10the implementation of any mandate created by this amendatory
11Act of the 97th General Assembly.".