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91_HB0523enr HB0523 Enrolled LRB9102505MWcd 1 AN ACT to amend the Illinois Municipal Code by changing 2 Sections 8-11-1.1, 8-11-1.3, 8-11-1.4, and 8-11-1.5. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 1. Legislative intent. State and federal 6 governments and organizations have studied the changing 7 habits of consumer purchasing and are discussing a movement 8 from retailers' occupation taxes to taxes which are more 9 efficiently collected from catalog and electronic commerce 10 vendors of tangible personal property. It is the intent of 11 the General Assembly that this amendatory Act of the 91st 12 General Assembly contain a delayed collection date until 13 January 1, 2002 to allow additional time for the study of the 14 effects of a shift in the methods of imposing and collecting 15 taxes on consumption. 16 Section 5. The Illinois Municipal Code is amended by 17 changing Sections 8-11-1.1, 8-11-1.3, 8-11-1.4, and 8-11-1.5 18 as follows: 19 (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1) 20 Sec. 8-11-1.1. Non-home rule municipalities; imposition 21 of taxes. 22 (a) The corporate authorities of a non-home rule 23 municipalitywith a population greater than 130,000 but less24than 2,000,000may, upon approval of the electors of the 25 municipality pursuant to subsection (b) of this Section, 26 impose by ordinance or resolution the 1/2 of 1% tax 27 authorized in Sections 8-11-1.3, 8-11-1.4 and 8-11-1.5 of 28 this Act. 29 (b) The corporate authorities of the municipality may by 30 ordinance or resolution call for the submission to the HB0523 Enrolled -2- LRB9102505MWcd 1 electors of the municipality the question of whether the 2 municipality shall impose such tax. Such question shall be 3 certified by the municipal clerk to the election authority in 4 accordance with Section 28-5 of the Election Code and shall 5 be in a form in accordance with Section 16-7 of the Election 6 Code. 7 If a majority of the electors in the municipality voting 8 upon the question vote in the affirmative, such tax shall be 9 imposed. 10 An ordinance or resolution imposing the 1/2 of 1% tax 11 hereunder or discontinuing the same shall be adopted and a 12 certified copy thereof, together with a certification that 13 the ordinance or resolution received referendum approval in 14 the case of the imposition of such tax, filed with the 15 Department of Revenue, on or before the first day of June, 16 whereupon the Department shall proceed to administer and 17 enforce the additional tax or to discontinue the tax, as the 18 case may be, as of the first day of September next following 19 such adoption and filing. Beginning January 1, 1992, an 20 ordinance or resolution imposing or discontinuing the tax 21 hereunder shall be adopted and a certified copy thereof filed 22 with the Department on or before the first day of July, 23 whereupon the Department shall proceed to administer and 24 enforce this Section as of the first day of October next 25 following such adoption and filing. Beginning January 1, 26 1993, an ordinance or resolution imposing or discontinuing 27 the tax hereunder shall be adopted and a certified copy 28 thereof filed with the Department on or before the first day 29 of October, whereupon the Department shall proceed to 30 administer and enforce this Section as of the first day of 31 January next following such adoption and filing. A non-home 32 rule municipality may file a certified copy of an ordinance 33 or resolution, with a certification that the ordinance or 34 resolution received referendum approval in the case of the HB0523 Enrolled -3- LRB9102505MWcd 1 imposition of the tax, with the Department of Revenue, as 2 required under this Section, only after October 2, 2000. 3 (Source: P.A. 86-928; 87-205.) 4 (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3) 5 Sec. 8-11-1.3. Non-Home Rule Municipal Retailers' 6 Occupation Tax Act. The corporate authorities of a non-home 7 rule municipalitywith more than 130,000 but less than82,000,000 inhabitantsmay impose a tax upon all persons 9 engaged in the business of selling tangible personal 10 property, other than on an item of tangible personal property 11 which is titled and registered by an agency of this State's 12 Government, at retail in the municipality at the rate of 1/2 13 of 1% for expenditure on public infrastructure as defined in 14 Section 8-11-1.2 if approved by referendum as provided in 15 Section 8-11-1.1, of the gross receipts from such sales made 16 in the course of such business. The tax may not be imposed on 17 the sale of food for human consumption that is to be consumed 18 off the premises where it is sold (other than alcoholic 19 beverages, soft drinks, and food that has been prepared for 20 immediate consumption) and prescription and nonprescription 21 medicines, drugs, medical appliances, and insulin, urine 22 testing materials, syringes, and needles used by diabetics. 23 The tax imposed by a municipality pursuant to this Section 24 and all civil penalties that may be assessed as an incident 25 thereof shall be collected and enforced by the State 26 Department of Revenue. The certificate of registration which 27 is issued by the Department to a retailer under the 28 Retailers' Occupation Tax Act shall permit such retailer to 29 engage in a business which is taxable under any ordinance or 30 resolution enacted pursuant to this Section without 31 registering separately with the Department under such 32 ordinance or resolution or under this Section. The 33 Department shall have full power to administer and enforce HB0523 Enrolled -4- LRB9102505MWcd 1 this Section; to collect all taxes and penalties due 2 hereunder; to dispose of taxes and penalties so collected in 3 the manner hereinafter provided, and to determine all rights 4 to credit memoranda, arising on account of the erroneous 5 payment of tax or penalty hereunder. In the administration 6 of, and compliance with, this Section, the Department and 7 persons who are subject to this Section shall have the same 8 rights, remedies, privileges, immunities, powers and duties, 9 and be subject to the same conditions, restrictions, 10 limitations, penalties and definitions of terms, and employ 11 the same modes of procedure, as are prescribed in Sections 1, 12 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to 13 all provisions therein other than the State rate of tax), 2c, 14 3 (except as to the disposition of taxes and penalties 15 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 16 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the 17 Retailers' Occupation Tax Act and Section 3-7 of the Uniform 18 Penalty and Interest Act as fully as if those provisions were 19 set forth herein. 20 No municipality may impose a tax under this Section 21 unless the municipality also imposes a tax at the same rate 22 under Section 8-11-1.4 of this Code. 23 Persons subject to any tax imposed pursuant to the 24 authority granted in this Section may reimburse themselves 25 for their seller's tax liability hereunder by separately 26 stating such tax as an additional charge, which charge may be 27 stated in combination, in a single amount, with State tax 28 which sellers are required to collect under the Use Tax Act, 29 pursuant to such bracket schedules as the Department may 30 prescribe. 31 Whenever the Department determines that a refund should 32 be made under this Section to a claimant instead of issuing a 33 credit memorandum, the Department shall notify the State 34 Comptroller, who shall cause the order to be drawn for the HB0523 Enrolled -5- LRB9102505MWcd 1 amount specified, and to the person named, in such 2 notification from the Department. Such refund shall be paid 3 by the State Treasurer out of the non-home rule municipal 4 retailers' occupation tax fund. 5 The Department shall forthwith pay over to the State 6 Treasurer, ex officio, as trustee, all taxes and penalties 7 collected hereunder. On or before the 25th day of each 8 calendar month, the Department shall prepare and certify to 9 the Comptroller the disbursement of stated sums of money to 10 named municipalities, the municipalities to be those from 11 which retailers have paid taxes or penalties hereunder to the 12 Department during the second preceding calendar month. The 13 amount to be paid to each municipality shall be the amount 14 (not including credit memoranda) collected hereunder during 15 the second preceding calendar month by the Department plus an 16 amount the Department determines is necessary to offset any 17 amounts which were erroneously paid to a different taxing 18 body, and not including an amount equal to the amount of 19 refunds made during the second preceding calendar month by 20 the Department on behalf of such municipality, and not 21 including any amount which the Department determines is 22 necessary to offset any amounts which were payable to a 23 different taxing body but were erroneously paid to the 24 municipality. Within 10 days after receipt, by the 25 Comptroller, of the disbursement certification to the 26 municipalities, provided for in this Section to be given to 27 the Comptroller by the Department, the Comptroller shall 28 cause the orders to be drawn for the respective amounts in 29 accordance with the directions contained in such 30 certification. 31 For the purpose of determining the local governmental 32 unit whose tax is applicable, a retail sale, by a producer of 33 coal or other mineral mined in Illinois, is a sale at retail 34 at the place where the coal or other mineral mined in HB0523 Enrolled -6- LRB9102505MWcd 1 Illinois is extracted from the earth. This paragraph does 2 not apply to coal or other mineral when it is delivered or 3 shipped by the seller to the purchaser at a point outside 4 Illinois so that the sale is exempt under the Federal 5 Constitution as a sale in interstate or foreign commerce. 6 Nothing in this Section shall be construed to authorize a 7 municipality to impose a tax upon the privilege of engaging 8 in any business which under the constitution of the United 9 States may not be made the subject of taxation by this State. 10 When certifying the amount of a monthly disbursement to a 11 municipality under this Section, the Department shall 12 increase or decrease such amount by an amount necessary to 13 offset any misallocation of previous disbursements. The 14 offset amount shall be the amount erroneously disbursed 15 within the previous 6 months from the time a misallocation is 16 discovered. 17 The Department of Revenue shall implement this amendatory 18 Act of the 91st General Assembly so as to collect the tax on 19 and after January 1, 2002. 20 As used in this Section, "municipal" and "municipality" 21 means a city, village or incorporated town, including an 22 incorporated town which has superseded a civil township. 23 This Section shall be known and may be cited as the 24 "Non-Home Rule Municipal Retailers' Occupation Tax Act". 25 (Source: P.A. 86-928; 86-1475; 87-205; 87-895.) 26 (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4) 27 Sec. 8-11-1.4. Non-Home Rule Municipal Service 28 Occupation Tax Act. The corporate authorities of a non-home 29 rule municipalitywith a population of more than 130,000 but30less than 2,000,000may impose a tax upon all persons 31 engaged, in such municipality, in the business of making 32 sales of service at the rate of 1/2 of 1% for expenditure on 33 public infrastructure as defined in Section 8-11-1.2 if HB0523 Enrolled -7- LRB9102505MWcd 1 approved by referendum as provided in Section 8-11-1.1, of 2 the selling price of all tangible personal property 3 transferred by such servicemen either in the form of tangible 4 personal property or in the form of real estate as an 5 incident to a sale of service. The tax may not be imposed on 6 the sale of food for human consumption that is to be consumed 7 off the premises where it is sold (other than alcoholic 8 beverages, soft drinks, and food that has been prepared for 9 immediate consumption) and prescription and nonprescription 10 medicines, drugs, medical appliances, and insulin, urine 11 testing materials, syringes, and needles used by diabetics. 12 The tax imposed by a municipality pursuant to this Section 13 and all civil penalties that may be assessed as an incident 14 thereof shall be collected and enforced by the State 15 Department of Revenue. The certificate of registration which 16 is issued by the Department to a retailer under the 17 Retailers' Occupation Tax Act or under the Service Occupation 18 Tax Act shall permit such registrant to engage in a business 19 which is taxable under any ordinance or resolution enacted 20 pursuant to this Section without registering separately with 21 the Department under such ordinance or resolution or under 22 this Section. The Department shall have full power to 23 administer and enforce this Section; to collect all taxes and 24 penalties due hereunder; to dispose of taxes and penalties so 25 collected in the manner hereinafter provided, and to 26 determine all rights to credit memoranda arising on account 27 of the erroneous payment of tax or penalty hereunder. In the 28 administration of, and compliance with, this Section the 29 Department and persons who are subject to this Section shall 30 have the same rights, remedies, privileges, immunities, 31 powers and duties, and be subject to the same conditions, 32 restrictions, limitations, penalties and definitions of 33 terms, and employ the same modes of procedure, as are 34 prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in HB0523 Enrolled -8- LRB9102505MWcd 1 respect to all provisions therein other than the State rate 2 of tax), 4 (except that the reference to the State shall be 3 to the taxing municipality), 5, 7, 8 (except that the 4 jurisdiction to which the tax shall be a debt to the extent 5 indicated in that Section 8 shall be the taxing 6 municipality), 9 (except as to the disposition of taxes and 7 penalties collected, and except that the returned merchandise 8 credit for this municipal tax may not be taken against any 9 State tax), 10, 11, 12 (except the reference therein to 10 Section 2b of the Retailers' Occupation Tax Act), 13 (except 11 that any reference to the State shall mean the taxing 12 municipality), the first paragraph of Section 15, 16, 17, 18, 13 19 and 20 of the Service Occupation Tax Act and Section 3-7 14 of the Uniform Penalty and Interest Act, as fully as if those 15 provisions were set forth herein. 16 No municipality may impose a tax under this Section 17 unless the municipality also imposes a tax at the same rate 18 under Section 8-11-1.3 of this Code. 19 Persons subject to any tax imposed pursuant to the 20 authority granted in this Section may reimburse themselves 21 for their serviceman's tax liability hereunder by separately 22 stating such tax as an additional charge, which charge may be 23 stated in combination, in a single amount, with State tax 24 which servicemen are authorized to collect under the Service 25 Use Tax Act, pursuant to such bracket schedules as the 26 Department may prescribe. 27 Whenever the Department determines that a refund should 28 be made under this Section to a claimant instead of issuing 29 credit memorandum, the Department shall notify the State 30 Comptroller, who shall cause the order to be drawn for the 31 amount specified, and to the person named, in such 32 notification from the Department. Such refund shall be paid 33 by the State Treasurer out of the municipal retailers' 34 occupation tax fund. HB0523 Enrolled -9- LRB9102505MWcd 1 The Department shall forthwith pay over to the State 2 Treasurer, ex officio, as trustee, all taxes and penalties 3 collected hereunder. On or before the 25th day of each 4 calendar month, the Department shall prepare and certify to 5 the Comptroller the disbursement of stated sums of money to 6 named municipalities, the municipalities to be those from 7 which suppliers and servicemen have paid taxes or penalties 8 hereunder to the Department during the second preceding 9 calendar month. The amount to be paid to each municipality 10 shall be the amount (not including credit memoranda) 11 collected hereunder during the second preceding calendar 12 month by the Department, and not including an amount equal to 13 the amount of refunds made during the second preceding 14 calendar month by the Department on behalf of such 15 municipality. Within 10 days after receipt, by the 16 Comptroller, of the disbursement certification to the 17 municipalities and the General Revenue Fund, provided for in 18 this Section to be given to the Comptroller by the 19 Department, the Comptroller shall cause the orders to be 20 drawn for the respective amounts in accordance with the 21 directions contained in such certification. 22 The Department of Revenue shall implement this amendatory 23 Act of the 91st General Assembly so as to collect the tax on 24 and after January 1, 2002. 25 Nothing in this Section shall be construed to authorize a 26 municipality to impose a tax upon the privilege of engaging 27 in any business which under the constitution of the United 28 States may not be made the subject of taxation by this State. 29 As used in this Section, "municipal" or "municipality" 30 means or refers to a city, village or incorporated town, 31 including an incorporated town which has superseded a civil 32 township. 33 This Section shall be known and may be cited as the 34 "Non-Home Rule Municipal Service Occupation Tax Act". HB0523 Enrolled -10- LRB9102505MWcd 1 (Source: P.A. 86-928; 86-1475; 87-205; 87-895.) 2 (65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5) 3 Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The 4 corporate authorities of a non-home rule municipalitywith a5population greater than 130,000 but less than 2,000,000may 6 impose a tax upon the privilege of using, in such 7 municipality, any item of tangible personal property which is 8 purchased at retail from a retailer, and which is titled or 9 registered with an agency of this State's government, at a 10 rate of 1/2 of 1% and based on the selling price of such 11 tangible personal property, as "selling price" is defined in 12 the Use Tax Act, for expenditure on public infrastructure as 13 defined in Section 8-11-1.2, if approved by referendum as 14 provided in Section 8-11-1.1. Such tax shall be collected 15 from persons whose Illinois address for title or registration 16 purposes is given as being in such municipality. Such tax 17 shall be collected by the municipality imposing such tax. A 18 non-home rule municipality may not impose and collect the tax 19 prior to January 1, 2002. 20 This Section shall be known and may be cited as the 21 "Non-Home Rule Municipal Use Tax Act". 22 (Source: P.A. 86-928.)