Illinois General Assembly - Full Text of SB1337
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Full Text of SB1337  100th General Assembly



State of Illinois
2017 and 2018


Introduced 2/9/2017, by Sen. Sue Rezin


65 ILCS 5/8-11-6b

    Amends the Illinois Municipal Code. Makes a technical change in a Section concerning taxes on soft drinks imposed by home rule municipalities.

LRB100 07731 AWJ 17797 b





SB1337LRB100 07731 AWJ 17797 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 Section 8-11-6b as follows:
6    (65 ILCS 5/8-11-6b)
7    Sec. 8-11-6b. Home rule soft drink taxes.
8    (a) Except as provided in Sections 8-11-1, 8-11-5 and and
98-11-6, or as provided in this Section, no home rule
10municipality has the authority to impose, pursuant to its home
11rule authority, a tax on the sale, purchase, or use of soft
12drinks regardless of whether the measure of the tax is selling
13price, purchase price, gross receipts, unit of volumetric
14measure, or any other measure. For purposes of this subsection,
15the term "soft drink" has the meaning set forth in Section 2-10
16of the Retailers' Occupation Tax Act, as may be amended from
17time to time, except that the term shall not be limited to
18drinks contained in a closed or sealed bottle, can, carton, or
19container. This Section is a denial and limitation, under
20subsection (g) of Section 6 of Article VII of the Illinois
21Constitution, on the power of home rule units to tax.
22    (b) The corporate authorities of a home rule municipality
23with a population in excess of 1,000,000 may impose a tax,



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1which shall not take effect prior to April 1, 1994, upon all
2persons engaged in the business of selling soft drinks (other
3than fountain soft drinks) at retail in the municipality based
4on the gross receipts from those sales made in the course of
5such business. If imposed, the tax shall only be in 1/4%
6increments and shall not exceed 3%. For purposes of this
7subsection, the term "soft drink" has the meaning set forth in
8Section 2-10 of the Retailers' Occupation Tax Act, as may be
9amended from time to time, except that the term shall not be
10limited to drinks contained in a closed or sealed bottle, can,
11carton or container; the term "fountain soft drinks" means soft
12drinks which are prepared by the retail seller of the soft
13drinks by mixing syrup or concentrate with water, by hand or
14through a soft drink dispensing machine, at or near the point
15and time of sale to the retail purchaser; and the term "soft
16drink dispensing machine" means a device which mixes soft drink
17syrup or concentrate with water and dispenses the mixture into
18an open container as a ready to drink soft drink.
19    The tax imposed under this subsection and all civil
20penalties that may be assessed as an incident to that tax shall
21be collected and enforced by the Illinois Department of
22Revenue. The Department shall have full power to administer and
23enforce this subsection, to collect all taxes and penalties so
24collected in the manner provided in this subsection, and to
25determine all rights to credit memoranda arising on account of
26the erroneous payment of tax or penalty under this subsection.



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1In the administration of and compliance with this subsection,
2the Department and persons who are subject to this subsection
3shall have the same rights, remedies, privileges, immunities,
4powers and duties, shall be subject to the same conditions,
5restrictions, limitations, penalties, exclusions, exemptions,
6and definitions of terms, and shall employ the same modes of
7procedure applicable to the Retailers' Occupation Tax as are
8prescribed in Sections 1, 2 through 2-65 (in respect to all
9provisions of those Sections other than the State rate of
10taxes), 2c, 2h, 2i, 3 (except as to the disposition of taxes
11and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i,
125j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13 and, until January 1,
131994, 13.5 of the Retailers' Occupation Tax Act, and on and
14after January 1, 1994, all applicable provisions of the Uniform
15Penalty and Interest Act that are not inconsistent with this
16subsection, as fully as if provisions contained in those
17Sections of the Retailers' Occupation Tax Act were set forth in
18this subsection.
19    Persons subject to any tax imposed under the authority
20granted by this subsection may reimburse themselves for their
21seller's tax liability under this subsection by separately
22stating that tax as an additional charge, which charge may be
23stated in combination, in a single amount, with State taxes
24that sellers are required to collect under the Use Tax Act
25pursuant to bracket schedules as the Department may prescribe.
26The retailer filing the return shall, at the time of filing the



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1return, pay to the Department the amount of tax imposed under
2this subsection, less the discount of 1.75%, which is allowed
3to reimburse the retailer for the expenses incurred in keeping
4records, preparing the filing returns, remitting the tax, and
5supplying data to the Department on request.
6    Whenever the Department determines that a refund should be
7made under this subsection to a claimant instead of issuing a
8credit memoranda, the Department shall notify the State
9Comptroller, who shall cause a warrant to be drawn for the
10amount specified and to the person named in the notification
11from the Department. The refund shall be paid by the State
12Treasurer out of the Home Rule Municipal Soft Drink Retailers'
13Occupation Tax Fund.
14    The Department shall forthwith pay over to the State
15Treasurer, ex officio, as trustee, all taxes and penalties
16collected hereunder. On or before the 25th day of each calendar
17month, the Department shall prepare and certify to the
18Comptroller the amount to be paid to named municipalities, the
19municipalities to be those from which retailers have paid taxes
20or penalties hereunder to the Department during the second
21preceding calendar month. The amount to be paid to each
22municipality shall be the amount collected hereunder during the
23second preceding calendar month by the Department, less any
24amounts determined by the Department to be necessary for the
25payment of refunds, and less 4% for the first year the tax is
26in effect and 2% thereafter of such balance, which sum shall be



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1deposited by the State Treasurer into the Tax Compliance and
2Administration Fund in the State treasury from which it shall
3be appropriated to the Department to cover the costs of the
4Department in administering and enforcing the provisions of
5this subsection. Within 10 days after receipt by the
6Comptroller of the certification, the Comptroller shall cause
7the orders to be drawn for the respective amount in accordance
8with the directions contained in such certification.
9    Nothing in this Section shall be construed to authorize a
10municipality to impose a tax upon the privilege of engaging in
11any business which under the Constitution of the United States
12may not be made the subject of taxation by the State.
13    A certificate of registration issued by the Illinois
14Department of Revenue to a retailer under the Retailers'
15Occupation Tax Act shall permit the registrant to engage in a
16business that is taxed under the tax imposed under this
17subsection and no additional registration shall be required
18under the ordinance imposing a tax or under this subsection.
19    A certified copy of any ordinance imposing or discontinuing
20any tax under this subsection or effecting a change in the rate
21of that tax shall be filed with the Department, whereupon the
22Department shall proceed to administer and enforce this
23subsection on behalf of such municipality as of the first day
24of February following the date of filing. This tax shall be
25known and cited as the Home Rule Municipal Soft Drink
26Retailers' Occupation Tax.



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1    (c) The corporate authorities of a home rule municipality
2with a population in excess of 1,000,000 may impose a tax,
3which shall not take effect prior to April 1, 1994, on persons
4engaged in the business of selling fountain soft drinks at
5retail at a rate not to exceed 9% of the cost price of the
6fountain soft drinks at retail in such municipality. For
7purposes of this subsection, the term "soft drink" has the
8meaning set forth in Section 2-10 of the Retailers' Occupation
9Tax Act, as may be amended from time to time, except that the
10term shall not be limited to drinks contained in a closed or
11sealed bottle, can, carton, or container; the term "fountain
12soft drinks" means soft drinks which are prepared by the retail
13seller of the soft drinks by mixing soft drink syrup or
14concentrate with water, by hand or through a soft drink
15dispensing machine at or near the point and time of sale to the
16retail purchaser; the term "soft drink dispensing machine"
17means a device which mixes soft drink syrup or concentrate with
18water and dispenses such mixture into an open container as a
19ready to drink soft drink; the term "sold at retail" shall mean
20any transfer of the ownership or title to tangible personal
21property to a purchaser, for the purpose of use or consumption,
22and not for the purpose of resale, for valuable consideration;
23the term "cost price of the fountain soft drinks" means the
24consideration paid by the retail seller of the fountain soft
25drink, valued in money, whether paid in money or otherwise,
26including cash, credits and services, and shall be determined



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1without any deduction on account of the supplier's cost of the
2property sold or on account or any other expenses incurred by
3the supplier, for the purchase of soft drink syrup or
4concentrate which is designed to be further mixed with water
5before it is consumed as a soft drink; and the term "supplier"
6means any person who makes sales of soft drink syrup or
7concentrate to a retail seller of fountain soft drinks for
8purposes of resale as fountain soft drinks. The tax authorized
9by this subsection shall be collected, enforced, and
10administered by the municipality imposing the tax. Persons
11subject to the tax may reimburse themselves for their tax
12liability hereunder by separately stating an amount equal to
13the tax as an additional charge to their retail purchasers or
14may include such amount as part of the selling price of the
15soft drink. The municipality imposing the tax shall provide for
16its collection from the person subject to the tax by requiring
17that the supplier to the person subject to the tax collect and
18remit the tax to the municipality. If the supplier fails to
19collect the tax or if the person subject to the tax fails to
20pay the tax to its supplier, the person subject to the tax
21shall make the tax payment directly to the municipality.
22Payment of the tax by the retailer to the supplier shall
23relieve the retailer of any further liability for the tax.
24    (d) If either tax imposed or authorized by this Section
258-11-6b is repealed by the General Assembly or has its maximum
26rate reduced by the General Assembly, or is declared unlawful



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1or unconstitutional on its face by any court of competent
2jurisdiction after all appeals have been exhausted or the time
3to appeal has expired, then this Section 8-11-6b is
4automatically repealed and no longer effective without further
5action by the General Assembly.
6    (e) Notwithstanding the preemption of taxes on the sale,
7purchase or use of soft drinks, taxes on the sale, purchase, or
8use of soft drinks which had been imposed by a municipality
9prior to the effective date of this amendatory Act of 1993 are
10specifically authorized under this Section for sales made on or
11after the effective date of this amendatory Act of 1993 through
12March 31, 1994.
13(Source: P.A. 88-507.)