Illinois General Assembly - Full Text of HB0938
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Full Text of HB0938  101st General Assembly


Rep. Lawrence Walsh, Jr.

Filed: 4/3/2019





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2    AMENDMENT NO. ______. Amend House Bill 938 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Municipal Code is amended by
5changing Section 8-11-1.3 as follows:
6    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
7    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
8Occupation Tax Act. The corporate authorities of a non-home
9rule municipality may impose a tax upon all persons engaged in
10the business of selling tangible personal property, other than
11on an item of tangible personal property which is titled and
12registered by an agency of this State's Government, at retail
13in the municipality for expenditure on public infrastructure or
14for property tax relief or both as defined in Section 8-11-1.2
15if approved by referendum as provided in Section 8-11-1.1, of
16the gross receipts from such sales made in the course of such



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1business. If the tax is approved by referendum on or after July
214, 2010 (the effective date of Public Act 96-1057), the
3corporate authorities of a non-home rule municipality may,
4until July 1, 2030 December 31, 2020, use the proceeds of the
5tax for expenditure on municipal operations, in addition to or
6in lieu of any expenditure on public infrastructure or for
7property tax relief. The tax imposed may not be more than 1%
8and may be imposed only in 1/4% increments. The tax may not be
9imposed on tangible personal property taxed at the 1% rate
10under the Retailers' Occupation Tax Act. The tax imposed by a
11municipality pursuant to this Section and all civil penalties
12that may be assessed as an incident thereof shall be collected
13and enforced by the State Department of Revenue. The
14certificate of registration which is issued by the Department
15to a retailer under the Retailers' Occupation Tax Act shall
16permit such retailer to engage in a business which is taxable
17under any ordinance or resolution enacted pursuant to this
18Section without registering separately with the Department
19under such ordinance or resolution or under this Section. The
20Department shall have full power to administer and enforce this
21Section; to collect all taxes and penalties due hereunder; to
22dispose of taxes and penalties so collected in the manner
23hereinafter provided, and to determine all rights to credit
24memoranda, arising on account of the erroneous payment of tax
25or penalty hereunder. In the administration of, and compliance
26with, this Section, the Department and persons who are subject



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1to this Section shall have the same rights, remedies,
2privileges, immunities, powers and duties, and be subject to
3the same conditions, restrictions, limitations, penalties and
4definitions of terms, and employ the same modes of procedure,
5as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j,
62 through 2-65 (in respect to all provisions therein other than
7the State rate of tax), 2c, 3 (except as to the disposition of
8taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
95g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
10and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
11the Uniform Penalty and Interest Act as fully as if those
12provisions were set forth herein.
13    No municipality may impose a tax under this Section unless
14the municipality also imposes a tax at the same rate under
15Section 8-11-1.4 of this Code.
16    Persons subject to any tax imposed pursuant to the
17authority granted in this Section may reimburse themselves for
18their seller's tax liability hereunder by separately stating
19such tax as an additional charge, which charge may be stated in
20combination, in a single amount, with State tax which sellers
21are required to collect under the Use Tax Act, pursuant to such
22bracket schedules as the Department may prescribe.
23    Whenever the Department determines that a refund should be
24made under this Section to a claimant instead of issuing a
25credit memorandum, the Department shall notify the State
26Comptroller, who shall cause the order to be drawn for the



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1amount specified, and to the person named, in such notification
2from the Department. Such refund shall be paid by the State
3Treasurer out of the non-home rule municipal retailers'
4occupation tax fund.
5    The Department shall forthwith pay over to the State
6Treasurer, ex officio, as trustee, all taxes and penalties
7collected hereunder.
8    As soon as possible after the first day of each month,
9beginning January 1, 2011, upon certification of the Department
10of Revenue, the Comptroller shall order transferred, and the
11Treasurer shall transfer, to the STAR Bonds Revenue Fund the
12local sales tax increment, as defined in the Innovation
13Development and Economy Act, collected under this Section
14during the second preceding calendar month for sales within a
15STAR bond district.
16    After the monthly transfer to the STAR Bonds Revenue Fund,
17on or before the 25th day of each calendar month, the
18Department shall prepare and certify to the Comptroller the
19disbursement of stated sums of money to named municipalities,
20the municipalities to be those from which retailers have paid
21taxes or penalties hereunder to the Department during the
22second preceding calendar month. The amount to be paid to each
23municipality shall be the amount (not including credit
24memoranda) collected hereunder during the second preceding
25calendar month by the Department plus an amount the Department
26determines is necessary to offset any amounts which were



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



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1to the purchaser at a point outside Illinois so that the sale
2is exempt under the Federal Constitution as a sale in
3interstate or foreign commerce.
4    Nothing in this Section shall be construed to authorize a
5municipality to impose a tax upon the privilege of engaging in
6any business which under the constitution of the United States
7may not be made the subject of taxation by this State.
8    When certifying the amount of a monthly disbursement to a
9municipality under this Section, the Department shall increase
10or decrease such amount by an amount necessary to offset any
11misallocation of previous disbursements. The offset amount
12shall be the amount erroneously disbursed within the previous 6
13months from the time a misallocation is discovered.
14    The Department of Revenue shall implement Public Act 91-649
15this amendatory Act of the 91st General Assembly so as to
16collect the tax on and after January 1, 2002.
17    As used in this Section, "municipal" and "municipality"
18means a city, village or incorporated town, including an
19incorporated town which has superseded a civil township.
20    This Section shall be known and may be cited as the
21"Non-Home Rule Municipal Retailers' Occupation Tax Act".
22(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
23100-587, eff. 6-4-18; 100-1171, eff. 1-4-19; revised