State of Illinois
92nd General Assembly
Legislation

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92_SB2319

 
                                               LRB9213656SMpk

 1        AN ACT concerning taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Illinois  Municipal Code is amended by
 5    changing Section 8-11-6 as follows:

 6        (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
 7        Sec. 8-11-6.  Home Rule Municipal Use Tax Act.
 8        (a)  The   corporate   authorities   of   a   home   rule
 9    municipality may impose a tax upon the privilege of using, in
10    such municipality, any item  of  tangible  personal  property
11    which  is  purchased  at retail from a retailer, and which is
12    titled or registered  at  a  location  within  the  corporate
13    limits  of such home rule municipality with an agency of this
14    State's government, at a rate which is an increment  of  1/4%
15    and  based  on  the  selling  price of such tangible personal
16    property, as "selling price" is defined in the Use  Tax  Act.
17    In   home   rule  municipalities  with  less  than  2,000,000
18    inhabitants, the tax shall be collected by  the  municipality
19    imposing  the  tax  from  persons  whose Illinois address for
20    titling or registration purposes is given as  being  in  such
21    municipality.
22        (b)  In  home  rule municipalities with 2,000,000 or more
23    inhabitants, the corporate authorities  of  the  municipality
24    may additionally impose a tax beginning July 1, 1991 upon the
25    privilege  of using in the municipality, any item of tangible
26    personal property,  other  than  tangible  personal  property
27    titled   or   registered   with  an  agency  of  the  State's
28    government, that is  purchased  at  retail  from  a  retailer
29    located  outside the corporate limits of the municipality, at
30    a rate that is an increment of 1/4%  not  to  exceed  1%  and
31    based on the selling price of the tangible personal property,
 
                            -2-                LRB9213656SMpk
 1    as  "selling  price" is defined in the Use Tax Act.  Such tax
 2    shall be collected from the purchaser or the retailer  either
 3    by the municipality imposing such tax or by the Department of
 4    Revenue  pursuant  to an agreement between the Department and
 5    the municipality.
 6        To prevent multiple home rule taxation, the use in a home
 7    rule municipality  of  tangible  personal  property  that  is
 8    acquired  outside  the  municipality and caused to be brought
 9    into the municipality by a person who has already paid a home
10    rule municipal tax in another municipality in respect to  the
11    sale,  purchase,  or use of that property, shall be exempt to
12    the extent of the amount of the tax properly due and paid  in
13    the other home rule municipality.
14        (c)  If   a   municipality   having   2,000,000  or  more
15    inhabitants imposes the tax  authorized  by  subsection  (a),
16    then the tax shall be collected by the Illinois Department of
17    Revenue  when  the  property  is  purchased  at retail from a
18    retailer in the county in which the  home  rule  municipality
19    imposing  the tax is located, and in all contiguous counties.
20    The tax shall be remitted  to  the  State,  or  an  exemption
21    determination must be obtained from the Department before the
22    title  or certificate of registration for the property may be
23    issued.  The tax or proof of exemption may be transmitted  to
24    the  Department  by  way  of  the State agency with which, or
25    State officer with whom, the tangible personal property  must
26    be  titled or registered if the Department and that agency or
27    State officer determine that this procedure will expedite the
28    processing of applications for title or registration.
29        The Department shall have full power  to  administer  and
30    enforce  this  Section  to  collect  all taxes, penalties and
31    interest due hereunder, to dispose of  taxes,  penalties  and
32    interest so collected in the manner hereinafter provided, and
33    determine  all  rights to credit memoranda or refunds arising
34    on account of  the  erroneous  payment  of  tax,  penalty  or
 
                            -3-                LRB9213656SMpk
 1    interest  hereunder.  In the administration of and compliance
 2    with this Section the Department and persons who are  subject
 3    to  this  Section  shall  have  the  same  rights,  remedies,
 4    privileges,  immunities, powers and duties, and be subject to
 5    the same conditions, restrictions, limitations, penalties and
 6    definitions of terms, and employ the same modes of  procedure
 7    as  are  prescribed  in  Sections 2 (except the definition of
 8    "retailer maintaining a place of business in this State"),  3
 9    (except  provisions  pertaining to the State rate of tax, and
10    except provisions concerning collection or refunding  of  the
11    tax  by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22
12    of the Use Tax Act, which  are  not  inconsistent  with  this
13    Section,  as  fully  as  if  provisions  contained  in  those
14    Sections of the Use Tax Act were set forth herein.
15        Whenever the Department determines that a refund shall be
16    made  under  this  Section to a claimant instead of issuing a
17    credit memorandum, the  Department  shall  notify  the  State
18    Comptroller,  who  shall  cause the order to be drawn for the
19    amount  specified,  and  to  the  person   named,   in   such
20    notification  from the Department.  Such refund shall be paid
21    by the  State  Treasurer  out  of  the  home  rule  municipal
22    retailers' occupation tax fund.
23        The  Department  shall  forthwith  pay  over to the State
24    Treasurer, ex officio, as trustee, all taxes,  penalties  and
25    interest  collected  hereunder.  On or before the 25th day of
26    each calendar month, the Department shall prepare and certify
27    to the State Comptroller the disbursement of stated  sums  of
28    money  to  named  municipalities,  the  municipality  in each
29    instance to be that municipality from  which  the  Department
30    during   the   second  preceding  calendar  month,  collected
31    municipal use tax from any person whose Illinois address  for
32    titling  or  registration  purposes is given as being in such
33    municipality.  The amount to be  paid  to  each  municipality
34    shall   be   the  amount  (not  including  credit  memoranda)
 
                            -4-                LRB9213656SMpk
 1    collected hereunder  during  the  second  preceding  calendar
 2    month by the Department, and not including an amount equal to
 3    the  amount  of  refunds  made  during  the  second preceding
 4    calendar  month  by  the  Department  on   behalf   of   such
 5    municipality,  less  the  amount  expended  during the second
 6    preceding month  by  the  Department  to  be  paid  from  the
 7    appropriation  to the Department from the Home Rule Municipal
 8    Retailers' Occupation Tax Trust Fund.  The  appropriation  to
 9    cover  the  costs incurred by the Department in administering
10    and enforcing this Section shall not exceed 2% of the  amount
11    estimated  to  be  deposited  into  the  Home  Rule Municipal
12    Retailers' Occupation Tax Trust Fund during the  fiscal  year
13    for  which  the  appropriation is made.  Within 10 days after
14    receipt  by  the  State  Comptroller  of   the   disbursement
15    certification  to  the  municipalities  provided  for in this
16    Section  to  be  given  to  the  State  Comptroller  by   the
17    Department,  the  State Comptroller shall cause the orders to
18    be drawn for the respective amounts in  accordance  with  the
19    directions contained in that certification.
20        Any  ordinance  imposing  or  discontinuing any tax to be
21    collected and enforced by the Department under  this  Section
22    shall  be adopted and a certified copy thereof filed with the
23    Department on or before October 1, whereupon  the  Department
24    of  Revenue  shall  proceed  to  administer  and enforce this
25    Section on behalf of the municipalities as of January 1  next
26    following such adoption and filing.  Beginning April 1, 1998,
27    any  ordinance  imposing  or  discontinuing  any  tax  to  be
28    collected  and  enforced by the Department under this Section
29    shall either (i) be adopted  and  a  certified  copy  thereof
30    filed with the Department on or before April 1, whereupon the
31    Department of Revenue shall proceed to administer and enforce
32    this  Section  on  behalf  of the municipalities as of July 1
33    next following the adoption and filing; or  (ii)  be  adopted
34    and  a certified copy thereof filed with the Department on or
 
                            -5-                LRB9213656SMpk
 1    before October 1, whereupon the Department of  Revenue  shall
 2    proceed  to  administer and enforce this Section on behalf of
 3    the  municipalities  as  of  January  1  next  following  the
 4    adoption and filing.
 5        Nothing in this subsection (c) shall prevent a home  rule
 6    municipality  from  collecting the tax pursuant to subsection
 7    (a) in any situation where such tax is not collected  by  the
 8    Department of Revenue under this subsection (c).
 9        (d)  Any  unobligated  balance remaining in the Municipal
10    Retailers' Occupation Tax Fund on December  31,  1989,  which
11    fund was abolished by Public Act 85-1135, and all receipts of
12    municipal  tax  as  a  result  of audits of liability periods
13    prior to January 1,  1990,  shall  be  paid  into  the  Local
14    Government  Tax  Fund,  for  distribution as provided by this
15    Section prior to the enactment of  Public  Act  85-1135.  All
16    receipts  of  municipal  tax as a result of an assessment not
17    arising from an audit, for liability periods prior to January
18    1, 1990, shall be paid into the Local Government Tax Fund for
19    distribution before July 1, 1990, as provided by this Section
20    prior to the enactment of Public  Act  85-1135,  and  on  and
21    after July 1, 1990, all such receipts shall be distributed as
22    provided in Section 6z-18 of the State Finance Act.
23        (e)  As   used   in   this   Section,   "Municipal"   and
24    "Municipality"  means  a  city, village or incorporated town,
25    including an incorporated town which has superseded  a  civil
26    township.
27        (f)  This  Section shall be known and may be cited as the
28    Home Rule Municipal Use Tax Act.
29    (Source: P.A. 91-51, eff. 6-30-99; 92-221, eff. 8-2-01.)

30        Section 99.  Effective date.  This Act takes effect  upon
31    becoming law.

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