(65 ILCS 5/8-9-2) (from Ch. 24, par. 8-9-2)
Sec. 8-9-2.
(a) In municipalities of less than 500,000 population, the
corporate authorities may provide by ordinance that all supplies needed for
use of the municipality shall be furnished by contract, let to the lowest
bidder.
In municipalities of more than 500,000 population the provisions of
Division 10 of this Article 8 shall apply to and govern the purchase of
supplies.
The provisions of this Section are subject to any contrary provisions
contained in "An Act concerning the use of Illinois mined coal in certain
plants and institutions", filed July 13, 1937, as heretofore and hereafter
amended.
(b) The corporate authorities of a municipality may by ordinance provide
that
contracts to provide goods and services to the municipality contain a provision
requiring
the contractor and its affiliates to collect and remit Illinois Use Tax on all
sales of
tangible personal property into the State of Illinois in accordance with the
provisions of
the Illinois Use Tax Act, and municipal use tax on all sales of tangible
personal property
into the municipality in accordance with a municipal ordinance authorized by
Section 8-11-6 or 8-11-1.5, during the term of the contract or for some other
specified
period,
regardless of whether the contractor or affiliate is a "retailer maintaining a
place of
business within this State" as defined in Section 2 of the Use Tax Act. The
provision
may state that if the requirement is not met, the contract may be terminated by
the
municipality, and the contractor may be subject to such other penalties or the
exercise of
such remedies as may be stated in the contract or the ordinance adopted under
this
Section. An ordinance adopted under this Section may contain exceptions for
emergencies or other circumstances when the exception is in the best interest of
the
public. For purposes of this Section, the term "affiliate" means any entity
that (1)
directly, indirectly, or constructively controls another entity, (2) is
directly, indirectly, or
constructively controlled by another entity, or (3) is subject to the control of
a common
entity. For purposes of this subsection (b), an entity controls another entity
if it owns,
directly or individually, more than 10% of the voting securities of that
entity. As used in
this subsection (b), the term "voting security" means a security that (1)
confers upon the
holder the right to vote for the election of members of the board of directors
or similar
governing body of the business or (2) is convertible into, or entitles the
holder to receive
upon its exercise, a security that confers such a right to vote. A general
partnership
interest is a voting security.
(Source: P.A. 93-25, eff. 6-20-03.)
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