SB0584 EngrossedLRB101 04346 AWJ 49354 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Section 8-11-1.3 as follows:
 
6    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
7    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
8Occupation Tax Act. The corporate authorities of a non-home
9rule municipality may impose a tax upon all persons engaged in
10the business of selling tangible personal property, other than
11on an item of tangible personal property which is titled and
12registered by an agency of this State's Government, at retail
13in the municipality for expenditure on public infrastructure or
14for property tax relief or both as defined in Section 8-11-1.2
15if approved by referendum as provided in Section 8-11-1.1, of
16the gross receipts from such sales made in the course of such
17business. If the tax is approved by referendum on or after July
1814, 2010 (the effective date of Public Act 96-1057), the
19corporate authorities of a non-home rule municipality may,
20until July 1, 2030 December 31, 2020, use the proceeds of the
21tax for expenditure on municipal operations, in addition to or
22in lieu of any expenditure on public infrastructure or for
23property tax relief. The tax imposed may not be more than 1%

 

 

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1and may be imposed only in 1/4% increments. The tax may not be
2imposed on tangible personal property taxed at the 1% rate
3under the Retailers' Occupation Tax Act. The tax imposed by a
4municipality pursuant to this Section and all civil penalties
5that may be assessed as an incident thereof shall be collected
6and enforced by the State Department of Revenue. The
7certificate of registration which is issued by the Department
8to a retailer under the Retailers' Occupation Tax Act shall
9permit such retailer to engage in a business which is taxable
10under any ordinance or resolution enacted pursuant to this
11Section without registering separately with the Department
12under such ordinance or resolution or under this Section. The
13Department shall have full power to administer and enforce this
14Section; to collect all taxes and penalties due hereunder; to
15dispose of taxes and penalties so collected in the manner
16hereinafter provided, and to determine all rights to credit
17memoranda, arising on account of the erroneous payment of tax
18or penalty hereunder. In the administration of, and compliance
19with, this Section, the Department and persons who are subject
20to this Section shall have the same rights, remedies,
21privileges, immunities, powers and duties, and be subject to
22the same conditions, restrictions, limitations, penalties and
23definitions of terms, and employ the same modes of procedure,
24as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j,
252 through 2-65 (in respect to all provisions therein other than
26the State rate of tax), 2c, 3 (except as to the disposition of

 

 

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1taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
25g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
3and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
4the Uniform Penalty and Interest Act as fully as if those
5provisions were set forth herein.
6    No municipality may impose a tax under this Section unless
7the municipality also imposes a tax at the same rate under
8Section 8-11-1.4 of this Code.
9    Persons subject to any tax imposed pursuant to the
10authority granted in this Section may reimburse themselves for
11their seller's tax liability hereunder by separately stating
12such tax as an additional charge, which charge may be stated in
13combination, in a single amount, with State tax which sellers
14are required to collect under the Use Tax Act, pursuant to such
15bracket schedules as the Department may prescribe.
16    Whenever the Department determines that a refund should be
17made under this Section to a claimant instead of issuing a
18credit memorandum, the Department shall notify the State
19Comptroller, who shall cause the order to be drawn for the
20amount specified, and to the person named, in such notification
21from the Department. Such refund shall be paid by the State
22Treasurer out of the non-home rule municipal retailers'
23occupation tax fund.
24    The Department shall forthwith pay over to the State
25Treasurer, ex officio, as trustee, all taxes and penalties
26collected hereunder.

 

 

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

 

 

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1transferred to the STAR Bonds Revenue Fund, less 1.5% of the
2remainder, which the Department shall transfer into the Tax
3Compliance and Administration Fund. The Department, at the time
4of each monthly disbursement to the municipalities, shall
5prepare and certify to the State Comptroller the amount to be
6transferred into the Tax Compliance and Administration Fund
7under this Section. Within 10 days after receipt, by the
8Comptroller, of the disbursement certification to the
9municipalities and the Tax Compliance and Administration Fund
10provided for in this Section to be given to the Comptroller by
11the Department, the Comptroller shall cause the orders to be
12drawn for the respective amounts in accordance with the
13directions contained in such certification.
14    For the purpose of determining the local governmental unit
15whose tax is applicable, a retail sale, by a producer of coal
16or other mineral mined in Illinois, is a sale at retail at the
17place where the coal or other mineral mined in Illinois is
18extracted from the earth. This paragraph does not apply to coal
19or other mineral when it is delivered or shipped by the seller
20to the purchaser at a point outside Illinois so that the sale
21is exempt under the Federal Constitution as a sale in
22interstate or foreign commerce.
23    Nothing in this Section shall be construed to authorize a
24municipality to impose a tax upon the privilege of engaging in
25any business which under the constitution of the United States
26may not be made the subject of taxation by this State.

 

 

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1    When certifying the amount of a monthly disbursement to a
2municipality under this Section, the Department shall increase
3or decrease such amount by an amount necessary to offset any
4misallocation of previous disbursements. The offset amount
5shall be the amount erroneously disbursed within the previous 6
6months from the time a misallocation is discovered.
7    The Department of Revenue shall implement Public Act 91-649
8this amendatory Act of the 91st General Assembly so as to
9collect the tax on and after January 1, 2002.
10    As used in this Section, "municipal" and "municipality"
11means a city, village or incorporated town, including an
12incorporated town which has superseded a civil township.
13    This Section shall be known and may be cited as the
14"Non-Home Rule Municipal Retailers' Occupation Tax Act".
15(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
16100-587, eff. 6-4-18; 100-1171, eff. 1-4-19; revised 1-9-19.)