State of Illinois
91st General Assembly
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91_HB0523eng

 
HB0523 Engrossed                               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   5.   The  Illinois Municipal Code is amended by
 6    changing Sections 8-11-1.1, 8-11-1.3, 8-11-1.4, and  8-11-1.5
 7    as follows:

 8        (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
 9        Sec.  8-11-1.1.  Non-home rule municipalities; imposition
10    of taxes.
11        (a)  The  corporate  authorities  of  a   non-home   rule
12    municipality  with a population greater than 130,000 but less
13    than 2,000,000 may, upon approval  of  the  electors  of  the
14    municipality  pursuant  to  subsection  (b)  of this Section,
15    impose  by  ordinance  or  resolution  the  1/2  of  1%   tax
16    authorized  in  Sections  8-11-1.3,  8-11-1.4 and 8-11-1.5 of
17    this Act.
18        (b)  The corporate authorities of the municipality may by
19    ordinance or  resolution  call  for  the  submission  to  the
20    electors  of  the  municipality   the question of whether the
21    municipality shall impose such tax.  Such question  shall  be
22    certified by the municipal clerk to the election authority in
23    accordance  with  Section 28-5 of the Election Code and shall
24    be in a form in accordance with Section 16-7 of the  Election
25    Code.
26        If  a majority of the electors in the municipality voting
27    upon the question vote in the affirmative, such tax shall  be
28    imposed.
29        An  ordinance  or  resolution  imposing the 1/2 of 1% tax
30    hereunder or discontinuing the same shall be  adopted  and  a
31    certified  copy  thereof,  together with a certification that

 
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 1    the ordinance or resolution received referendum  approval  in
 2    the  case  of  the  imposition  of  such  tax, filed with the
 3    Department of Revenue, on or before the first  day  of  June,
 4    whereupon  the  Department  shall  proceed  to administer and
 5    enforce the additional tax or to discontinue the tax, as  the
 6    case  may be, as of the first day of September next following
 7    such adoption and  filing.  Beginning  January  1,  1992,  an
 8    ordinance  or  resolution  imposing  or discontinuing the tax
 9    hereunder shall be adopted and a certified copy thereof filed
10    with the Department on or  before  the  first  day  of  July,
11    whereupon  the  Department  shall  proceed  to administer and
12    enforce this Section as of the  first  day  of  October  next
13    following  such  adoption  and  filing.  Beginning January 1,
14    1993, an ordinance or resolution  imposing  or  discontinuing
15    the  tax  hereunder  shall  be  adopted  and a certified copy
16    thereof filed with the Department on or before the first  day
17    of   October,  whereupon  the  Department  shall  proceed  to
18    administer and enforce this Section as of the  first  day  of
19    January next following such adoption and filing.
20    (Source: P.A. 86-928; 87-205.)

21        (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
22        Sec.   8-11-1.3.  Non-Home   Rule   Municipal  Retailer's
23    Occupation Tax Act. The corporate authorities of  a  non-home
24    rule  municipality  with  more  than  130,000  but  less than
25    2,000,000 inhabitants may  impose  a  tax  upon  all  persons
26    engaged   in   the  business  of  selling  tangible  personal
27    property, other than on an item of tangible personal property
28    which is titled and registered by an agency of  this  State's
29    Government,  at retail in the municipality at the rate of 1/2
30    of 1% for expenditure on public infrastructure as defined  in
31    Section  8-11-1.2  if  approved  by referendum as provided in
32    Section 8-11-1.1, of the gross receipts from such sales  made
33    in  the  course  of  such  business.   The  tax  imposed by a
 
HB0523 Engrossed            -3-                LRB9102505MWcd
 1    municipality pursuant to this Section and all civil penalties
 2    that  may  be  assessed  as  an  incident  thereof  shall  be
 3    collected and enforced by the State  Department  of  Revenue.
 4    The  certificate  of  registration  which  is  issued  by the
 5    Department to a retailer under the Retailers' Occupation  Tax
 6    Act  shall permit such retailer to engage in a business which
 7    is taxable under any ordinance or resolution enacted pursuant
 8    to this  Section  without  registering  separately  with  the
 9    Department  under  such ordinance or resolution or under this
10    Section.  The Department shall have full power to  administer
11    and  enforce this Section; to collect all taxes and penalties
12    due hereunder; to dispose of taxes and penalties so collected
13    in the manner hereinafter  provided,  and  to  determine  all
14    rights  to  credit  memoranda,  arising  on  account  of  the
15    erroneous  payment  of  tax  or  penalty  hereunder.   In the
16    administration of, and compliance  with,  this  Section,  the
17    Department  and persons who are subject to this Section shall
18    have  the  same  rights,  remedies,  privileges,  immunities,
19    powers and duties, and be subject  to  the  same  conditions,
20    restrictions,   limitations,  penalties  and  definitions  of
21    terms, and  employ  the  same  modes  of  procedure,  as  are
22    prescribed  in  Sections  1,  1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
23    through 2-65 (in respect to all provisions therein other than
24    the State rate of tax), 2c, 3 (except as to  the  disposition
25    of  taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e,
26    5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9,  10,  11,
27    12  and  13  of the Retailers' Occupation Tax Act and Section
28    3-7 of the Uniform Penalty and Interest Act as  fully  as  if
29    those provisions were set forth herein.
30        Persons  subject  to  any  tax  imposed  pursuant  to the
31    authority granted in this Section  may  reimburse  themselves
32    for  their  seller's  tax  liability  hereunder by separately
33    stating such tax as an additional charge, which charge may be
34    stated in combination, in a single  amount,  with  State  tax
 
HB0523 Engrossed            -4-                LRB9102505MWcd
 1    which  sellers are required to collect under the Use Tax Act,
 2    pursuant to such bracket  schedules  as  the  Department  may
 3    prescribe.
 4        Whenever  the  Department determines that a refund should
 5    be made under this Section to a claimant instead of issuing a
 6    credit memorandum, the  Department  shall  notify  the  State
 7    Comptroller,  who  shall  cause the order to be drawn for the
 8    amount  specified,  and  to  the  person   named,   in   such
 9    notification  from the Department.  Such refund shall be paid
10    by the State Treasurer out of  the  non-home  rule  municipal
11    retailers' occupation tax fund.
12        The  Department  shall  forthwith  pay  over to the State
13    Treasurer, ex officio, as trustee, all  taxes  and  penalties
14    collected  hereunder.   On  or  before  the  25th day of each
15    calendar month, the Department shall prepare and  certify  to
16    the  Comptroller  the disbursement of stated sums of money to
17    named municipalities, the municipalities  to  be  those  from
18    which retailers have paid taxes or penalties hereunder to the
19    Department  during  the  second preceding calendar month. The
20    amount to be paid to each municipality shall  be  the  amount
21    (not  including  credit memoranda) collected hereunder during
22    the second preceding calendar month by the Department plus an
23    amount the Department determines is necessary to  offset  any
24    amounts  which  were  erroneously  paid to a different taxing
25    body,  and not including an amount equal  to  the  amount  of
26    refunds  made  during  the second preceding calendar month by
27    the Department  on  behalf  of  such  municipality,  and  not
28    including  any  amount  which  the  Department  determines is
29    necessary to offset any  amounts  which  were  payable  to  a
30    different  taxing  body  but  were  erroneously  paid  to the
31    municipality.  Within  10  days   after   receipt,   by   the
32    Comptroller,   of   the  disbursement  certification  to  the
33    municipalities, provided for in this Section to be  given  to
34    the  Comptroller  by  the  Department,  the Comptroller shall
 
HB0523 Engrossed            -5-                LRB9102505MWcd
 1    cause the orders to be drawn for the  respective  amounts  in
 2    accordance    with   the   directions   contained   in   such
 3    certification.
 4        For the purpose of  determining  the  local  governmental
 5    unit whose tax is applicable, a retail sale, by a producer of
 6    coal  or other mineral mined in Illinois, is a sale at retail
 7    at the place  where  the  coal  or  other  mineral  mined  in
 8    Illinois  is  extracted  from the earth.  This paragraph does
 9    not apply to coal or other mineral when it  is  delivered  or
10    shipped  by  the  seller  to the purchaser at a point outside
11    Illinois so  that  the  sale  is  exempt  under  the  Federal
12    Constitution as a sale in interstate or foreign commerce.
13        Nothing in this Section shall be construed to authorize a
14    municipality  to  impose a tax upon the privilege of engaging
15    in any business which under the constitution  of  the  United
16    States may not be made the subject of taxation by this State.
17        When certifying the amount of a monthly disbursement to a
18    municipality   under   this  Section,  the  Department  shall
19    increase or decrease such amount by an  amount  necessary  to
20    offset  any  misallocation  of  previous  disbursements.  The
21    offset  amount  shall  be  the  amount  erroneously disbursed
22    within the previous 6 months from the time a misallocation is
23    discovered.
24        As used in this Section, "municipal"  and  "municipality"
25    means  a  city,  village  or  incorporated town, including an
26    incorporated town which has superseded a civil township.
27        This Section shall be known  and  may  be  cited  as  the
28    "Non-Home Rule Municipal Retailers' Occupation Tax Act".
29    (Source: P.A. 86-928; 86-1475; 87-205; 87-895.)

30        (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
31        Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
32    Tax  Act.  The  corporate  authorities  of  a  non-home  rule
33    municipality  with a population of more than 130,000 but less
 
HB0523 Engrossed            -6-                LRB9102505MWcd
 1    than 2,000,000 may impose a tax upon all persons engaged,  in
 2    such municipality, in the business of making sales of service
 3    at   the  rate  of  1/2  of  1%  for  expenditure  on  public
 4    infrastructure as defined in Section 8-11-1.2 if approved  by
 5    referendum  as  provided  in Section 8-11-1.1, of the selling
 6    price of all tangible personal property transferred  by  such
 7    servicemen  either  in the form of tangible personal property
 8    or in the form of real estate as an incident  to  a  sale  of
 9    service.  The  tax imposed by a municipality pursuant to this
10    Section and all civil penalties that may be  assessed  as  an
11    incident thereof shall be collected and enforced by the State
12    Department  of Revenue. The certificate of registration which
13    is  issued  by  the  Department  to  a  retailer  under   the
14    Retailers' Occupation Tax Act or under the Service Occupation
15    Tax  Act shall permit such registrant to engage in a business
16    which is taxable under any ordinance  or  resolution  enacted
17    pursuant  to this Section without registering separately with
18    the Department under such ordinance or  resolution  or  under
19    this  Section.  The  Department  shall  have  full  power  to
20    administer and enforce this Section; to collect all taxes and
21    penalties due hereunder; to dispose of taxes and penalties so
22    collected   in   the  manner  hereinafter  provided,  and  to
23    determine all rights to credit memoranda arising  on  account
24    of  the erroneous payment of tax or penalty hereunder. In the
25    administration of, and  compliance  with,  this  Section  the
26    Department  and persons who are subject to this Section shall
27    have  the  same  rights,  remedies,  privileges,  immunities,
28    powers and duties, and be subject  to  the  same  conditions,
29    restrictions,   limitations,  penalties  and  definitions  of
30    terms, and  employ  the  same  modes  of  procedure,  as  are
31    prescribed  in  Sections  1a-1,  2,  2a,  3  through 3-50 (in
32    respect to all provisions therein other than the  State  rate
33    of  tax),  4 (except that the reference to the State shall be
34    to the  taxing  municipality),  5,  7,  8  (except  that  the
 
HB0523 Engrossed            -7-                LRB9102505MWcd
 1    jurisdiction  to  which the tax shall be a debt to the extent
 2    indicated  in  that   Section   8   shall   be   the   taxing
 3    municipality),  9  (except as to the disposition of taxes and
 4    penalties collected, and except that the returned merchandise
 5    credit for this municipal tax may not be  taken  against  any
 6    State  tax),  10,  11,  12  (except  the reference therein to
 7    Section 2b of the Retailers' Occupation Tax Act), 13  (except
 8    that  any  reference  to  the  State  shall  mean  the taxing
 9    municipality), the first paragraph of Section 15, 16, 17, 18,
10    19 and 20 of the Service Occupation Tax Act and  Section  3-7
11    of the Uniform Penalty and Interest Act, as fully as if those
12    provisions were set forth herein.
13        Persons  subject  to  any  tax  imposed  pursuant  to the
14    authority granted in this Section  may  reimburse  themselves
15    for  their serviceman's tax liability hereunder by separately
16    stating such tax as an additional charge, which charge may be
17    stated in combination, in a single  amount,  with  State  tax
18    which  servicemen are authorized to collect under the Service
19    Use Tax Act,  pursuant  to  such  bracket  schedules  as  the
20    Department may prescribe.
21        Whenever  the  Department determines that a refund should
22    be made under this Section to a claimant instead  of  issuing
23    credit  memorandum,  the  Department  shall  notify the State
24    Comptroller, who shall cause the order to be  drawn  for  the
25    amount   specified,   and   to  the  person  named,  in  such
26    notification from the Department. Such refund shall  be  paid
27    by  the  State  Treasurer  out  of  the  municipal retailers'
28    occupation tax fund.
29        The Department shall forthwith  pay  over  to  the  State
30    Treasurer,  ex  officio,  as trustee, all taxes and penalties
31    collected hereunder. On  or  before  the  25th  day  of  each
32    calendar  month,  the Department shall prepare and certify to
33    the Comptroller the disbursement of stated sums of  money  to
34    named  municipalities,  the  municipalities  to be those from
 
HB0523 Engrossed            -8-                LRB9102505MWcd
 1    which suppliers and servicemen have paid taxes  or  penalties
 2    hereunder  to  the  Department  during  the  second preceding
 3    calendar month. The amount to be paid  to  each  municipality
 4    shall   be   the  amount  (not  including  credit  memoranda)
 5    collected hereunder  during  the  second  preceding  calendar
 6    month by the Department, and not including an amount equal to
 7    the  amount  of  refunds  made  during  the  second preceding
 8    calendar  month  by  the  Department  on   behalf   of   such
 9    municipality.   Within   10   days   after  receipt,  by  the
10    Comptroller,  of  the  disbursement  certification   to   the
11    municipalities  and the General Revenue Fund, provided for in
12    this  Section  to  be  given  to  the  Comptroller   by   the
13    Department,  the  Comptroller  shall  cause  the orders to be
14    drawn for the  respective  amounts  in  accordance  with  the
15    directions contained in such certification.
16        Nothing in this Section shall be construed to authorize a
17    municipality  to  impose a tax upon the privilege of engaging
18    in any business which under the constitution  of  the  United
19    States may not be made the subject of taxation by this State.
20        As  used  in  this Section, "municipal" or "municipality"
21    means or refers to a  city,  village  or  incorporated  town,
22    including  an  incorporated town which has superseded a civil
23    township.
24        This Section shall be known  and  may  be  cited  as  the
25    "Non-Home Rule Municipal Service Occupation Tax Act".
26    (Source: P.A. 86-928; 86-1475; 87-205; 87-895.)

27        (65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5)
28        Sec.  8-11-1.5.  Non-Home Rule Municipal Use Tax Act. The
29    corporate authorities of a non-home rule municipality with  a
30    population  greater  than 130,000 but less than 2,000,000 may
31    impose  a  tax  upon  the  privilege  of   using,   in   such
32    municipality, any item of tangible personal property which is
33    purchased  at  retail from a retailer, and which is titled or
 
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 1    registered with an agency of this State's  government,  at  a
 2    rate  of  1/2  of  1%  and based on the selling price of such
 3    tangible personal property, as "selling price" is defined  in
 4    the  Use Tax Act, for expenditure on public infrastructure as
 5    defined in Section 8-11-1.2, if  approved  by  referendum  as
 6    provided  in  Section  8-11-1.1.  Such tax shall be collected
 7    from persons whose Illinois address for title or registration
 8    purposes is given as being in  such  municipality.  Such  tax
 9    shall be collected by the municipality imposing such tax.
10        This  Section  shall  be  known  and  may be cited as the
11    "Non-Home Rule Municipal Use Tax Act".
12    (Source: P.A. 86-928.)

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