Sen. Andy Manar

Filed: 4/5/2018

 

 


 

 


 
10000SB0488sam001LRB100 05152 HLH 37087 a

1
AMENDMENT TO SENATE BILL 488

2    AMENDMENT NO. ______. Amend Senate Bill 488 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Municipal Code is amended by
5changing Sections 8-11-1, 8-11-5, and 8-11-6 as follows:
 
6    (65 ILCS 5/8-11-1)  (from Ch. 24, par. 8-11-1)
7    Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
8Act. The corporate authorities of a home rule municipality may
9impose a tax upon all persons engaged in the business of
10selling tangible personal property, other than an item of
11tangible personal property titled or registered with an agency
12of this State's government, at retail in the municipality on
13the gross receipts from these sales made in the course of such
14business. If imposed, the tax shall only be imposed in 1/4%
15increments. On and after September 1, 1991, this additional tax
16may not be imposed on the sales of food for human consumption

 

 

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1that is to be consumed off the premises where it is sold (other
2than alcoholic beverages, soft drinks and food that has been
3prepared for immediate consumption) and prescription and
4nonprescription medicines, drugs, medical appliances and
5insulin, urine testing materials, syringes and needles used by
6diabetics. The tax imposed by a home rule municipality under
7this Section and all civil penalties that may be assessed as an
8incident of the tax shall be collected and enforced by the
9State Department of Revenue. The certificate of registration
10that is issued by the Department to a retailer under the
11Retailers' Occupation Tax Act shall permit the retailer to
12engage in a business that is taxable under any ordinance or
13resolution enacted pursuant to this Section without
14registering separately with the Department under such
15ordinance or resolution or under this Section. The Department
16shall have full power to administer and enforce this Section;
17to collect all taxes and penalties due hereunder; to dispose of
18taxes and penalties so collected in the manner hereinafter
19provided; and to determine all rights to credit memoranda
20arising on account of the erroneous payment of tax or penalty
21hereunder. In the administration of, and compliance with, this
22Section the Department and persons who are subject to this
23Section shall have the same rights, remedies, privileges,
24immunities, powers and duties, and be subject to the same
25conditions, restrictions, limitations, penalties and
26definitions of terms, and employ the same modes of procedure,

 

 

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1as are prescribed in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k,
21m, 1n, 2 through 2-65 (in respect to all provisions therein
3other than the State rate of tax), 2c, 3 (except as to the
4disposition of taxes and penalties collected), 4, 5, 5a, 5b,
55c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8,
69, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
7Section 3-7 of the Uniform Penalty and Interest Act, as fully
8as if those provisions were set forth herein.
9    No tax may be imposed by a home rule municipality under
10this Section unless the municipality also imposes a tax at the
11same rate under Section 8-11-5 of this Act.
12    Persons subject to any tax imposed under the authority
13granted in this Section may reimburse themselves for their
14seller's tax liability hereunder by separately stating that tax
15as an additional charge, which charge may be stated in
16combination, in a single amount, with State tax which sellers
17are required to collect under the Use Tax Act, pursuant to such
18bracket schedules as the Department may prescribe.
19    Whenever the Department determines that a refund should be
20made under this Section to a claimant instead of issuing a
21credit memorandum, the Department shall notify the State
22Comptroller, who shall cause the order to be drawn for the
23amount specified and to the person named in the notification
24from the Department. The refund shall be paid by the State
25Treasurer out of the home rule municipal retailers' occupation
26tax fund.

 

 

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

 

 

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1determines is necessary to offset any amounts that were payable
2to a different taxing body but were erroneously paid to the
3municipality, and not including any amounts that are
4transferred to the STAR Bonds Revenue Fund, less 2% of the
5remainder, which the Department shall transfer into the Tax
6Compliance and Administration Fund. The Department, at the time
7of each monthly disbursement to the municipalities, shall
8prepare and certify to the State Comptroller the amount to be
9transferred into the Tax Compliance and Administration Fund
10under this Section. Within 10 days after receipt by the
11Comptroller of the disbursement certification to the
12municipalities and the Tax Compliance and Administration Fund
13provided for in this Section to be given to the Comptroller by
14the Department, the Comptroller shall cause the orders to be
15drawn for the respective amounts in accordance with the
16directions contained in the certification.
17    In addition to the disbursement required by the preceding
18paragraph and in order to mitigate delays caused by
19distribution procedures, an allocation shall, if requested, be
20made within 10 days after January 14, 1991, and in November of
211991 and each year thereafter, to each municipality that
22received more than $500,000 during the preceding fiscal year,
23(July 1 through June 30) whether collected by the municipality
24or disbursed by the Department as required by this Section.
25Within 10 days after January 14, 1991, participating
26municipalities shall notify the Department in writing of their

 

 

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1intent to participate. In addition, for the initial
2distribution, participating municipalities shall certify to
3the Department the amounts collected by the municipality for
4each month under its home rule occupation and service
5occupation tax during the period July 1, 1989 through June 30,
61990. The allocation within 10 days after January 14, 1991,
7shall be in an amount equal to the monthly average of these
8amounts, excluding the 2 months of highest receipts. The
9monthly average for the period of July 1, 1990 through June 30,
101991 will be determined as follows: the amounts collected by
11the municipality under its home rule occupation and service
12occupation tax during the period of July 1, 1990 through
13September 30, 1990, plus amounts collected by the Department
14and paid to such municipality through June 30, 1991, excluding
15the 2 months of highest receipts. The monthly average for each
16subsequent period of July 1 through June 30 shall be an amount
17equal to the monthly distribution made to each such
18municipality under the preceding paragraph during this period,
19excluding the 2 months of highest receipts. The distribution
20made in November 1991 and each year thereafter under this
21paragraph and the preceding paragraph shall be reduced by the
22amount allocated and disbursed under this paragraph in the
23preceding period of July 1 through June 30. The Department
24shall prepare and certify to the Comptroller for disbursement
25the allocations made in accordance with this paragraph.
26    For the purpose of determining the local governmental unit

 

 

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1whose tax is applicable, a retail sale by a producer of coal or
2other mineral mined in Illinois is a sale at retail at the
3place where the coal or other mineral mined in Illinois is
4extracted from the earth. This paragraph does not apply to coal
5or other mineral when it is delivered or shipped by the seller
6to the purchaser at a point outside Illinois so that the sale
7is exempt under the United States Constitution as a sale in
8interstate or foreign commerce.
9    Nothing in this Section shall be construed to authorize a
10municipality to impose a tax upon the privilege of engaging in
11any business which under the Constitution of the United States
12may not be made the subject of taxation by this State.
13    An ordinance or resolution imposing or discontinuing a tax
14hereunder or effecting a change in the rate thereof shall be
15adopted and a certified copy thereof filed with the Department
16on or before the first day of June, whereupon the Department
17shall proceed to administer and enforce this Section as of the
18first day of September next following the adoption and filing.
19Beginning January 1, 1992, an ordinance or resolution imposing
20or discontinuing the tax hereunder or effecting a change in the
21rate thereof shall be adopted and a certified copy thereof
22filed with the Department on or before the first day of July,
23whereupon the Department shall proceed to administer and
24enforce this Section as of the first day of October next
25following such adoption and filing. Beginning January 1, 1993,
26an ordinance or resolution imposing or discontinuing the tax

 

 

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1hereunder or effecting a change in the rate thereof shall be
2adopted and a certified copy thereof filed with the Department
3on or before the first day of October, whereupon the Department
4shall proceed to administer and enforce this Section as of the
5first day of January next following the adoption and filing.
6However, a municipality located in a county with a population
7in excess of 3,000,000 that elected to become a home rule unit
8at the general primary election in 1994 may adopt an ordinance
9or resolution imposing the tax under this Section and file a
10certified copy of the ordinance or resolution with the
11Department on or before July 1, 1994. The Department shall then
12proceed to administer and enforce this Section as of October 1,
131994. Beginning April 1, 1998, an ordinance or resolution
14imposing or discontinuing the tax hereunder or effecting a
15change in the rate thereof shall either (i) be adopted and a
16certified copy thereof filed with the Department on or before
17the first day of April, whereupon the Department shall proceed
18to administer and enforce this Section as of the first day of
19July next following the adoption and filing; or (ii) be adopted
20and a certified copy thereof filed with the Department on or
21before the first day of October, whereupon the Department shall
22proceed to administer and enforce this Section as of the first
23day of January next following the adoption and filing.
24Notwithstanding the provisions of this Section, an ordinance
25passed by the City of Springfield in calendar year 2018
26effecting a change in the rate of a tax imposed under this

 

 

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1Section shall be adopted and a certified copy thereof filed
2with the Department on or before April 1, 2018, whereupon the
3Department shall proceed to administer and enforce the change
4as of May 1, 2018.
5    When certifying the amount of a monthly disbursement to a
6municipality under this Section, the Department shall increase
7or decrease the amount by an amount necessary to offset any
8misallocation of previous disbursements. The offset amount
9shall be the amount erroneously disbursed within the previous 6
10months from the time a misallocation is discovered.
11    Any unobligated balance remaining in the Municipal
12Retailers' Occupation Tax Fund on December 31, 1989, which fund
13was abolished by Public Act 85-1135, and all receipts of
14municipal tax as a result of audits of liability periods prior
15to January 1, 1990, shall be paid into the Local Government Tax
16Fund for distribution as provided by this Section prior to the
17enactment of Public Act 85-1135. All receipts of municipal tax
18as a result of an assessment not arising from an audit, for
19liability periods prior to January 1, 1990, shall be paid into
20the Local Government Tax Fund for distribution before July 1,
211990, as provided by this Section prior to the enactment of
22Public Act 85-1135; and on and after July 1, 1990, all such
23receipts shall be distributed as provided in Section 6z-18 of
24the State Finance Act.
25    As used in this Section, "municipal" and "municipality"
26means a city, village or incorporated town, including an

 

 

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1incorporated town that has superseded a civil township.
2    This Section shall be known and may be cited as the Home
3Rule Municipal Retailers' Occupation Tax Act.
4(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17.)
 
5    (65 ILCS 5/8-11-5)  (from Ch. 24, par. 8-11-5)
6    Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
7Act. The corporate authorities of a home rule municipality may
8impose a tax upon all persons engaged, in such municipality, in
9the business of making sales of service at the same rate of tax
10imposed pursuant to Section 8-11-1, of the selling price of all
11tangible personal property transferred by such servicemen
12either in the form of tangible personal property or in the form
13of real estate as an incident to a sale of service. If imposed,
14such tax shall only be imposed in 1/4% increments. On and after
15September 1, 1991, this additional tax may not be imposed on
16the sales of food for human consumption which is to be consumed
17off the premises where it is sold (other than alcoholic
18beverages, soft drinks and food which has been prepared for
19immediate consumption) and prescription and nonprescription
20medicines, drugs, medical appliances and insulin, urine
21testing materials, syringes and needles used by diabetics. The
22tax imposed by a home rule municipality pursuant to this
23Section and all civil penalties that may be assessed as an
24incident thereof shall be collected and enforced by the State
25Department of Revenue. The certificate of registration which is

 

 

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1issued by the Department to a retailer under the Retailers'
2Occupation Tax Act or under the Service Occupation Tax Act
3shall permit such registrant to engage in a business which is
4taxable under any ordinance or resolution enacted pursuant to
5this Section without registering separately with the
6Department under such ordinance or resolution or under this
7Section. The Department shall have full power to administer and
8enforce this Section; to collect all taxes and penalties due
9hereunder; to dispose of taxes and penalties so collected in
10the manner hereinafter provided, and to determine all rights to
11credit memoranda arising on account of the erroneous payment of
12tax or penalty hereunder. In the administration of, and
13compliance with, this Section the Department and persons who
14are subject to this Section shall have the same rights,
15remedies, privileges, immunities, powers and duties, and be
16subject to the same conditions, restrictions, limitations,
17penalties and definitions of terms, and employ the same modes
18of procedure, as are prescribed in Sections 1a-1, 2, 2a, 3
19through 3-50 (in respect to all provisions therein other than
20the State rate of tax), 4 (except that the reference to the
21State shall be to the taxing municipality), 5, 7, 8 (except
22that the jurisdiction to which the tax shall be a debt to the
23extent indicated in that Section 8 shall be the taxing
24municipality), 9 (except as to the disposition of taxes and
25penalties collected, and except that the returned merchandise
26credit for this municipal tax may not be taken against any

 

 

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1State tax), 10, 11, 12 (except the reference therein to Section
22b of the Retailers' Occupation Tax Act), 13 (except that any
3reference to the State shall mean the taxing municipality), the
4first paragraph of Section 15, 16, 17 (except that credit
5memoranda issued hereunder may not be used to discharge any
6State tax liability), 18, 19 and 20 of the Service Occupation
7Tax Act and Section 3-7 of the Uniform Penalty and Interest
8Act, as fully as if those provisions were set forth herein.
9    No tax may be imposed by a home rule municipality pursuant
10to this Section unless such municipality also imposes a tax at
11the same rate pursuant to Section 8-11-1 of this Act.
12    Persons subject to any tax imposed pursuant to the
13authority granted in this Section may reimburse themselves for
14their serviceman's tax liability hereunder by separately
15stating such tax as an additional charge, which charge may be
16stated in combination, in a single amount, with State tax which
17servicemen are authorized to collect under the Service Use Tax
18Act, pursuant to such bracket schedules as the Department may
19prescribe.
20    Whenever the Department determines that a refund should be
21made under this Section to a claimant instead of issuing credit
22memorandum, the Department shall notify the State Comptroller,
23who shall cause the order to be drawn for the amount specified,
24and to the person named, in such notification from the
25Department. Such refund shall be paid by the State Treasurer
26out of the home rule municipal retailers' occupation tax fund.

 

 

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1    The Department shall forthwith pay over to the State
2Treasurer, ex-officio, as trustee, all taxes and penalties
3collected hereunder.
4    As soon as possible after the first day of each month,
5beginning January 1, 2011, upon certification of the Department
6of Revenue, the Comptroller shall order transferred, and the
7Treasurer shall transfer, to the STAR Bonds Revenue Fund the
8local sales tax increment, as defined in the Innovation
9Development and Economy Act, collected under this Section
10during the second preceding calendar month for sales within a
11STAR bond district.
12    After the monthly transfer to the STAR Bonds Revenue Fund,
13on or before the 25th day of each calendar month, the
14Department shall prepare and certify to the Comptroller the
15disbursement of stated sums of money to named municipalities,
16the municipalities to be those from which suppliers and
17servicemen have paid taxes or penalties hereunder to the
18Department during the second preceding calendar month. The
19amount to be paid to each municipality shall be the amount (not
20including credit memoranda) collected hereunder during the
21second preceding calendar month by the Department, and not
22including an amount equal to the amount of refunds made during
23the second preceding calendar month by the Department on behalf
24of such municipality, and not including any amounts that are
25transferred to the STAR Bonds Revenue Fund, less 2% of the
26remainder, which the Department shall transfer into the Tax

 

 

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1Compliance and Administration Fund. The Department, at the time
2of each monthly disbursement to the municipalities, shall
3prepare and certify to the State Comptroller the amount to be
4transferred into the Tax Compliance and Administration Fund
5under this Section. Within 10 days after receipt, by the
6Comptroller, of the disbursement certification to the
7municipalities and the Tax Compliance and Administration Fund
8provided for in this Section to be given to the Comptroller by
9the Department, the Comptroller shall cause the orders to be
10drawn for the respective amounts in accordance with the
11directions contained in such certification.
12    In addition to the disbursement required by the preceding
13paragraph and in order to mitigate delays caused by
14distribution procedures, an allocation shall, if requested, be
15made within 10 days after January 14, 1991, and in November of
161991 and each year thereafter, to each municipality that
17received more than $500,000 during the preceding fiscal year,
18(July 1 through June 30) whether collected by the municipality
19or disbursed by the Department as required by this Section.
20Within 10 days after January 14, 1991, participating
21municipalities shall notify the Department in writing of their
22intent to participate. In addition, for the initial
23distribution, participating municipalities shall certify to
24the Department the amounts collected by the municipality for
25each month under its home rule occupation and service
26occupation tax during the period July 1, 1989 through June 30,

 

 

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11990. The allocation within 10 days after January 14, 1991,
2shall be in an amount equal to the monthly average of these
3amounts, excluding the 2 months of highest receipts. Monthly
4average for the period of July 1, 1990 through June 30, 1991
5will be determined as follows: the amounts collected by the
6municipality under its home rule occupation and service
7occupation tax during the period of July 1, 1990 through
8September 30, 1990, plus amounts collected by the Department
9and paid to such municipality through June 30, 1991, excluding
10the 2 months of highest receipts. The monthly average for each
11subsequent period of July 1 through June 30 shall be an amount
12equal to the monthly distribution made to each such
13municipality under the preceding paragraph during this period,
14excluding the 2 months of highest receipts. The distribution
15made in November 1991 and each year thereafter under this
16paragraph and the preceding paragraph shall be reduced by the
17amount allocated and disbursed under this paragraph in the
18preceding period of July 1 through June 30. The Department
19shall prepare and certify to the Comptroller for disbursement
20the allocations made in accordance with this paragraph.
21    Nothing in this Section shall be construed to authorize a
22municipality to impose a tax upon the privilege of engaging in
23any business which under the constitution of the United States
24may not be made the subject of taxation by this State.
25    An ordinance or resolution imposing or discontinuing a tax
26hereunder or effecting a change in the rate thereof shall be

 

 

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1adopted and a certified copy thereof filed with the Department
2on or before the first day of June, whereupon the Department
3shall proceed to administer and enforce this Section as of the
4first day of September next following such adoption and filing.
5Beginning January 1, 1992, an ordinance or resolution imposing
6or discontinuing the tax hereunder or effecting a change in the
7rate thereof shall be adopted and a certified copy thereof
8filed with the Department on or before the first day of July,
9whereupon the Department shall proceed to administer and
10enforce this Section as of the first day of October next
11following such adoption and filing. Beginning January 1, 1993,
12an ordinance or resolution imposing or discontinuing the tax
13hereunder or effecting a change in the rate thereof shall be
14adopted and a certified copy thereof filed with the Department
15on or before the first day of October, whereupon the Department
16shall proceed to administer and enforce this Section as of the
17first day of January next following such adoption and filing.
18However, a municipality located in a county with a population
19in excess of 3,000,000 that elected to become a home rule unit
20at the general primary election in 1994 may adopt an ordinance
21or resolution imposing the tax under this Section and file a
22certified copy of the ordinance or resolution with the
23Department on or before July 1, 1994. The Department shall then
24proceed to administer and enforce this Section as of October 1,
251994. Beginning April 1, 1998, an ordinance or resolution
26imposing or discontinuing the tax hereunder or effecting a

 

 

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1change in the rate thereof shall either (i) be adopted and a
2certified copy thereof filed with the Department on or before
3the first day of April, whereupon the Department shall proceed
4to administer and enforce this Section as of the first day of
5July next following the adoption and filing; or (ii) be adopted
6and a certified copy thereof filed with the Department on or
7before the first day of October, whereupon the Department shall
8proceed to administer and enforce this Section as of the first
9day of January next following the adoption and filing.
10Notwithstanding the provisions of this Section, an ordinance
11passed by the City of Springfield in calendar year 2018
12effecting a change in the rate of a tax imposed under this
13Section shall be adopted and a certified copy thereof filed
14with the Department on or before April 1, 2018, whereupon the
15Department shall proceed to administer and enforce the change
16as of May 1, 2018.
17    Any unobligated balance remaining in the Municipal
18Retailers' Occupation Tax Fund on December 31, 1989, which fund
19was abolished by Public Act 85-1135, and all receipts of
20municipal tax as a result of audits of liability periods prior
21to January 1, 1990, shall be paid into the Local Government Tax
22Fund, for distribution as provided by this Section prior to the
23enactment of Public Act 85-1135. All receipts of municipal tax
24as a result of an assessment not arising from an audit, for
25liability periods prior to January 1, 1990, shall be paid into
26the Local Government Tax Fund for distribution before July 1,

 

 

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11990, as provided by this Section prior to the enactment of
2Public Act 85-1135, and on and after July 1, 1990, all such
3receipts shall be distributed as provided in Section 6z-18 of
4the State Finance Act.
5    As used in this Section, "municipal" and "municipality"
6means a city, village or incorporated town, including an
7incorporated town which has superseded a civil township.
8    This Section shall be known and may be cited as the Home
9Rule Municipal Service Occupation Tax Act.
10(Source: P.A. 100-23, eff. 7-6-17.)
 
11    (65 ILCS 5/8-11-6)  (from Ch. 24, par. 8-11-6)
12    Sec. 8-11-6. Home Rule Municipal Use Tax Act.
13    (a) The corporate authorities of a home rule municipality
14may impose a tax upon the privilege of using, in such
15municipality, any item of tangible personal property which is
16purchased at retail from a retailer, and which is titled or
17registered at a location within the corporate limits of such
18home rule municipality with an agency of this State's
19government, at a rate which is an increment of 1/4% and based
20on the selling price of such tangible personal property, as
21"selling price" is defined in the Use Tax Act. In home rule
22municipalities with less than 2,000,000 inhabitants, the tax
23shall be collected by the municipality imposing the tax from
24persons whose Illinois address for titling or registration
25purposes is given as being in such municipality.

 

 

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1    (b) In home rule municipalities with 2,000,000 or more
2inhabitants, the corporate authorities of the municipality may
3additionally impose a tax beginning July 1, 1991 upon the
4privilege of using in the municipality, any item of tangible
5personal property, other than tangible personal property
6titled or registered with an agency of the State's government,
7that is purchased at retail from a retailer located outside the
8corporate limits of the municipality, at a rate that is an
9increment of 1/4% not to exceed 1% and based on the selling
10price of the tangible personal property, as "selling price" is
11defined in the Use Tax Act. Such tax shall be collected from
12the purchaser either by the municipality imposing such tax or
13by the Department of Revenue pursuant to an agreement between
14the Department and the municipality.
15    To prevent multiple home rule taxation, the use in a home
16rule municipality of tangible personal property that is
17acquired outside the municipality and caused to be brought into
18the municipality by a person who has already paid a home rule
19municipal tax in another municipality in respect to the sale,
20purchase, or use of that property, shall be exempt to the
21extent of the amount of the tax properly due and paid in the
22other home rule municipality.
23    (c) If a municipality having 2,000,000 or more inhabitants
24imposes the tax authorized by subsection (a), then the tax
25shall be collected by the Illinois Department of Revenue when
26the property is purchased at retail from a retailer in the

 

 

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1county in which the home rule municipality imposing the tax is
2located, and in all contiguous counties. The tax shall be
3remitted to the State, or an exemption determination must be
4obtained from the Department before the title or certificate of
5registration for the property may be issued. The tax or proof
6of exemption may be transmitted to the Department by way of the
7State agency with which, or State officer with whom, the
8tangible personal property must be titled or registered if the
9Department and that agency or State officer determine that this
10procedure will expedite the processing of applications for
11title or registration.
12    The Department shall have full power to administer and
13enforce this Section to collect all taxes, penalties and
14interest due hereunder, to dispose of taxes, penalties and
15interest so collected in the manner hereinafter provided, and
16determine all rights to credit memoranda or refunds arising on
17account of the erroneous payment of tax, penalty or interest
18hereunder. In the administration of and compliance with this
19Section the Department and persons who are subject to this
20Section shall have the same rights, remedies, privileges,
21immunities, powers and duties, and be subject to the same
22conditions, restrictions, limitations, penalties and
23definitions of terms, and employ the same modes of procedure as
24are prescribed in Sections 2 (except the definition of
25"retailer maintaining a place of business in this State"), 3
26(except provisions pertaining to the State rate of tax, and

 

 

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1except provisions concerning collection or refunding of the tax
2by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22 of the
3Use Tax Act, which are not inconsistent with this Section, as
4fully as if provisions contained in those Sections of the Use
5Tax Act were set forth herein.
6    Whenever the Department determines that a refund shall be
7made under this Section to a claimant instead of issuing a
8credit memorandum, the Department shall notify the State
9Comptroller, who shall cause the order to be drawn for the
10amount specified, and to the person named, in such notification
11from the Department. Such refund shall be paid by the State
12Treasurer out of the home rule municipal retailers' occupation
13tax fund.
14    The Department shall forthwith pay over to the State
15Treasurer, ex officio, as trustee, all taxes, penalties and
16interest collected hereunder. On or before the 25th day of each
17calendar month, the Department shall prepare and certify to the
18State Comptroller the disbursement of stated sums of money to
19named municipalities, the municipality in each instance to be
20that municipality from which the Department during the second
21preceding calendar month, collected municipal use tax from any
22person whose Illinois address for titling or registration
23purposes is given as being in such municipality. The amount to
24be paid to each municipality shall be the amount (not including
25credit memoranda) collected hereunder during the second
26preceding calendar month by the Department, and not including

 

 

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1an amount equal to the amount of refunds made during the second
2preceding calendar month by the Department on behalf of such
3municipality, less 2% of the balance, which sum shall be
4retained by the State Treasurer to cover the costs incurred by
5the Department in administering and enforcing the provisions of
6this Section. The Department, at the time of each monthly
7disbursement to the municipalities, shall prepare and certify
8to the Comptroller the amount so retained by the State
9Treasurer, which shall be transferred into the Tax Compliance
10and Administration Fund. Within 10 days after receipt by the
11State Comptroller of the disbursement certification to the
12municipalities provided for in this Section to be given to the
13State Comptroller by the Department, the State Comptroller
14shall cause the orders to be drawn for the respective amounts
15in accordance with the directions contained in that
16certification.
17    Any ordinance imposing or discontinuing any tax to be
18collected and enforced by the Department under this Section
19shall be adopted and a certified copy thereof filed with the
20Department on or before October 1, whereupon the Department of
21Revenue shall proceed to administer and enforce this Section on
22behalf of the municipalities as of January 1 next following
23such adoption and filing. Beginning April 1, 1998, any
24ordinance imposing or discontinuing any tax to be collected and
25enforced by the Department under this Section shall either (i)
26be adopted and a certified copy thereof filed with the

 

 

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1Department on or before April 1, whereupon the Department of
2Revenue shall proceed to administer and enforce this Section on
3behalf of the municipalities as of July 1 next following the
4adoption and filing; or (ii) be adopted and a certified copy
5thereof filed with the Department on or before October 1,
6whereupon the Department of Revenue shall proceed to administer
7and enforce this Section on behalf of the municipalities as of
8January 1 next following the adoption and filing.
9Notwithstanding the provisions of this Section, an ordinance
10passed by the City of Springfield in calendar year 2018
11effecting a change in the rate of a tax imposed under this
12Section shall be adopted and a certified copy thereof filed
13with the Department on or before April 1, 2018, whereupon the
14Department shall proceed to administer and enforce the change
15as of May 1, 2018.
16    Nothing in this subsection (c) shall prevent a home rule
17municipality from collecting the tax pursuant to subsection (a)
18in any situation where such tax is not collected by the
19Department of Revenue under this subsection (c).
20    (d) Any unobligated balance remaining in the Municipal
21Retailers' Occupation Tax Fund on December 31, 1989, which fund
22was abolished by Public Act 85-1135, and all receipts of
23municipal tax as a result of audits of liability periods prior
24to January 1, 1990, shall be paid into the Local Government Tax
25Fund, for distribution as provided by this Section prior to the
26enactment of Public Act 85-1135. All receipts of municipal tax

 

 

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1as a result of an assessment not arising from an audit, for
2liability periods prior to January 1, 1990, shall be paid into
3the Local Government Tax Fund for distribution before July 1,
41990, as provided by this Section prior to the enactment of
5Public Act 85-1135, and on and after July 1, 1990, all such
6receipts shall be distributed as provided in Section 6z-18 of
7the State Finance Act.
8    (e) As used in this Section, "Municipal" and "Municipality"
9means a city, village or incorporated town, including an
10incorporated town which has superseded a civil township.
11    (f) This Section shall be known and may be cited as the
12Home Rule Municipal Use Tax Act.
13(Source: P.A. 98-1049, eff. 8-25-14.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.".