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Full Text of HB3187  100th General Assembly

HB3187 100TH GENERAL ASSEMBLY

  
  

 


 
100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3187

 

Introduced , by Rep. Charles Meier

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-11-1.1  from Ch. 24, par. 8-11-1.1
65 ILCS 5/8-11-1.3  from Ch. 24, par. 8-11-1.3
65 ILCS 5/8-11-1.4  from Ch. 24, par. 8-11-1.4
65 ILCS 5/8-11-1.5  from Ch. 24, par. 8-11-1.5

    Amends the Illinois Municipal Code. Increases the amount of non-home rule municipal retailers' occupation taxes, non-home rule municipal service occupation taxes, and non-home rule municipal use taxes a non-home rule municipality may impose from 1% to 1.5%. Removes a restriction requiring the taxes to be imposed in 0.25% increments. Effective immediately.


LRB100 09074 AWJ 19225 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3187LRB100 09074 AWJ 19225 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 Sections 8-11-1.1, 8-11-1.3, 8-11-1.4, and 8-11-1.5
6as follows:
 
7    (65 ILCS 5/8-11-1.1)  (from Ch. 24, par. 8-11-1.1)
8    Sec. 8-11-1.1. Non-home rule municipalities; imposition of
9taxes.
10    (a) The corporate authorities of a non-home rule
11municipality may, upon approval of the electors of the
12municipality pursuant to subsection (b) of this Section, impose
13by ordinance or resolution the tax authorized in Sections
148-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act.
15    (b) The corporate authorities of the municipality may by
16ordinance or resolution call for the submission to the electors
17of the municipality the question of whether the municipality
18shall impose such tax. Such question shall be certified by the
19municipal clerk to the election authority in accordance with
20Section 28-5 of the Election Code and shall be in a form in
21accordance with Section 16-7 of the Election Code.
22    Notwithstanding any provision of law to the contrary, if
23the proceeds of the tax may be used for municipal operations

 

 

HB3187- 2 -LRB100 09074 AWJ 19225 b

1pursuant to Section 8-11-1.3, 8-11-1.4, or 8-11-1.5, then the
2election authority must submit the question in substantially
3the following form:
4        Shall the corporate authorities of the municipality be
5    authorized to levy a tax at a rate of (rate)% for
6    expenditures on municipal operations, expenditures on
7    public infrastructure, or property tax relief?
8    If a majority of the electors in the municipality voting
9upon the question vote in the affirmative, such tax shall be
10imposed.
11    Until January 1, 1992, an ordinance or resolution imposing
12the tax of not more than 1% hereunder or discontinuing the same
13shall be adopted and a certified copy thereof, together with a
14certification that the ordinance or resolution received
15referendum approval in the case of the imposition of such tax,
16filed with the Department of Revenue, on or before the first
17day of June, whereupon the Department shall proceed to
18administer and enforce the additional tax or to discontinue the
19tax, as the case may be, as of the first day of September next
20following such adoption and filing.
21    Beginning January 1, 1992 and through December 31, 1992, an
22ordinance or resolution imposing or discontinuing the tax
23hereunder shall be adopted and a certified copy thereof filed
24with the Department on or before the first day of July,
25whereupon the Department shall proceed to administer and
26enforce this Section as of the first day of October next

 

 

HB3187- 3 -LRB100 09074 AWJ 19225 b

1following such adoption and filing.
2    Beginning January 1, 1993, and through September 30, 2002,
3an ordinance or resolution imposing or discontinuing the tax
4hereunder shall be adopted and a certified copy thereof filed
5with the Department on or before the first day of October,
6whereupon the Department shall proceed to administer and
7enforce this Section as of the first day of January next
8following such adoption and filing.
9    Beginning October 1, 2002, and through December 31, 2013,
10an ordinance or resolution imposing or discontinuing the tax
11under this Section or effecting a change in the rate of tax
12must either (i) be adopted and a certified copy of the
13ordinance or resolution filed with the Department on or before
14the first day of April, whereupon the Department shall proceed
15to administer and enforce this Section as of the first day of
16July next following the adoption and filing; or (ii) be adopted
17and a certified copy of the ordinance or resolution filed with
18the Department on or before the first day of October, whereupon
19the Department shall proceed to administer and enforce this
20Section as of the first day of January next following the
21adoption and filing.
22    Beginning January 1, 2014, if an ordinance or resolution
23imposing the tax under this Section, discontinuing the tax
24under this Section, or effecting a change in the rate of tax
25under this Section is adopted, a certified copy thereof,
26together with a certification that the ordinance or resolution

 

 

HB3187- 4 -LRB100 09074 AWJ 19225 b

1received referendum approval in the case of the imposition of
2or increase in the rate of such tax, shall be filed with the
3Department of Revenue, either (i) on or before the first day of
4May, whereupon the Department shall proceed to administer and
5enforce this Section as of the first day of July next following
6the adoption and filing; or (ii) on or before the first day of
7October, whereupon the Department shall proceed to administer
8and enforce this Section as of the first day of January next
9following the adoption and filing.
10    Notwithstanding any provision in this Section to the
11contrary, if, in a non-home rule municipality with more than
12150,000 but fewer than 200,000 inhabitants, as determined by
13the last preceding federal decennial census, an ordinance or
14resolution under this Section imposes or discontinues a tax or
15changes the tax rate as of July 1, 2007, then that ordinance or
16resolution, together with a certification that the ordinance or
17resolution received referendum approval in the case of the
18imposition of the tax, must be adopted and a certified copy of
19that ordinance or resolution must be filed with the Department
20on or before May 15, 2007, whereupon the Department shall
21proceed to administer and enforce this Section as of July 1,
222007.
23    Notwithstanding any provision in this Section to the
24contrary, if, in a non-home rule municipality with more than
256,500 but fewer than 7,000 inhabitants, as determined by the
26last preceding federal decennial census, an ordinance or

 

 

HB3187- 5 -LRB100 09074 AWJ 19225 b

1resolution under this Section imposes or discontinues a tax or
2changes the tax rate on or before May 20, 2009, then that
3ordinance or resolution, together with a certification that the
4ordinance or resolution received referendum approval in the
5case of the imposition of the tax, must be adopted and a
6certified copy of that ordinance or resolution must be filed
7with the Department on or before May 20, 2009, whereupon the
8Department shall proceed to administer and enforce this Section
9as of July 1, 2009.
10    A non-home rule municipality may file a certified copy of
11an ordinance or resolution, with a certification that the
12ordinance or resolution received referendum approval in the
13case of the imposition of the tax, with the Department of
14Revenue, as required under this Section, only after October 2,
152000.
16    The tax authorized by this Section may not be more than
171.5% 1% and may be imposed only in 1/4% increments.
18(Source: P.A. 98-584, eff. 8-27-13.)
 
19    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
20    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
21Occupation Tax Act. The corporate authorities of a non-home
22rule municipality may impose a tax upon all persons engaged in
23the business of selling tangible personal property, other than
24on an item of tangible personal property which is titled and
25registered by an agency of this State's Government, at retail

 

 

HB3187- 6 -LRB100 09074 AWJ 19225 b

1in the municipality for expenditure on public infrastructure or
2for property tax relief or both as defined in Section 8-11-1.2
3if approved by referendum as provided in Section 8-11-1.1, of
4the gross receipts from such sales made in the course of such
5business. If the tax is approved by referendum on or after July
614, 2010 (the effective date of Public Act 96-1057), the
7corporate authorities of a non-home rule municipality may,
8until December 31, 2020, use the proceeds of the tax for
9expenditure on municipal operations, in addition to or in lieu
10of any expenditure on public infrastructure or for property tax
11relief. The tax imposed may not be more than 1.5% 1% and may be
12imposed only in 1/4% increments. The tax may not be imposed on
13the sale of food for human consumption that is to be consumed
14off the premises where it is sold (other than alcoholic
15beverages, soft drinks, and food that has been prepared for
16immediate consumption) and prescription and nonprescription
17medicines, drugs, medical appliances, and insulin, urine
18testing materials, syringes, and needles used by diabetics. The
19tax imposed by a municipality pursuant to this Section and all
20civil penalties that may be assessed as an incident thereof
21shall be collected and enforced by the State Department of
22Revenue. The certificate of registration which is issued by the
23Department to a retailer under the Retailers' Occupation Tax
24Act shall permit such retailer to engage in a business which is
25taxable under any ordinance or resolution enacted pursuant to
26this Section without registering separately with the

 

 

HB3187- 7 -LRB100 09074 AWJ 19225 b

1Department under such ordinance or resolution or under this
2Section. The Department shall have full power to administer and
3enforce this Section; to collect all taxes and penalties due
4hereunder; to dispose of taxes and penalties so collected in
5the manner hereinafter provided, and to determine all rights to
6credit memoranda, arising on account of the erroneous payment
7of tax or penalty hereunder. In the administration of, and
8compliance with, this Section, the Department and persons who
9are subject to this Section shall have the same rights,
10remedies, privileges, immunities, powers and duties, and be
11subject to the same conditions, restrictions, limitations,
12penalties and definitions of terms, and employ the same modes
13of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
141e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
15therein other than the State rate of tax), 2c, 3 (except as to
16the disposition of taxes and penalties collected), 4, 5, 5a,
175b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
187, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act
19and Section 3-7 of the Uniform Penalty and Interest Act as
20fully as if those provisions were set forth herein.
21    No municipality may impose a tax under this Section unless
22the municipality also imposes a tax at the same rate under
23Section 8-11-1.4 of this Code.
24    Persons subject to any tax imposed pursuant to the
25authority granted in this Section may reimburse themselves for
26their seller's tax liability hereunder by separately stating

 

 

HB3187- 8 -LRB100 09074 AWJ 19225 b

1such tax as an additional charge, which charge may be stated in
2combination, in a single amount, with State tax which sellers
3are required to collect under the Use Tax Act, pursuant to such
4bracket schedules as the Department may prescribe.
5    Whenever the Department determines that a refund should be
6made under this Section to a claimant instead of issuing a
7credit memorandum, the Department shall notify the State
8Comptroller, who shall cause the order to be drawn for the
9amount specified, and to the person named, in such notification
10from the Department. Such refund shall be paid by the State
11Treasurer out of the non-home rule municipal retailers'
12occupation tax fund.
13    The Department shall forthwith pay over to the State
14Treasurer, ex officio, as trustee, all taxes and penalties
15collected hereunder.
16    As soon as possible after the first day of each month,
17beginning January 1, 2011, upon certification of the Department
18of Revenue, the Comptroller shall order transferred, and the
19Treasurer shall transfer, to the STAR Bonds Revenue Fund the
20local sales tax increment, as defined in the Innovation
21Development and Economy Act, collected under this Section
22during the second preceding calendar month for sales within a
23STAR bond district.
24    After the monthly transfer to the STAR Bonds Revenue Fund,
25on or before the 25th day of each calendar month, the
26Department shall prepare and certify to the Comptroller the

 

 

HB3187- 9 -LRB100 09074 AWJ 19225 b

1disbursement of stated sums of money to named municipalities,
2the municipalities to be those from which retailers have paid
3taxes or penalties hereunder to the Department during the
4second preceding calendar month. The amount to be paid to each
5municipality shall be the amount (not including credit
6memoranda) collected hereunder during the second preceding
7calendar month by the Department plus an amount the Department
8determines is necessary to offset any amounts which were
9erroneously paid to a different taxing body, and not including
10an amount equal to the amount of refunds made during the second
11preceding calendar month by the Department on behalf of such
12municipality, and not including any amount which the Department
13determines is necessary to offset any amounts which were
14payable to a different taxing body but were erroneously paid to
15the municipality, and not including any amounts that are
16transferred to the STAR Bonds Revenue Fund. Within 10 days
17after receipt, by the Comptroller, of the disbursement
18certification to the municipalities, provided for in this
19Section to be given to the Comptroller by the Department, the
20Comptroller shall cause the orders to be drawn for the
21respective amounts in accordance with the directions contained
22in such certification.
23    For the purpose of determining the local governmental unit
24whose tax is applicable, a retail sale, by a producer of coal
25or other mineral mined in Illinois, is a sale at retail at the
26place where the coal or other mineral mined in Illinois is

 

 

HB3187- 10 -LRB100 09074 AWJ 19225 b

1extracted from the earth. This paragraph does not apply to coal
2or other mineral when it is delivered or shipped by the seller
3to the purchaser at a point outside Illinois so that the sale
4is exempt under the Federal Constitution as a sale in
5interstate or foreign commerce.
6    Nothing in this Section shall be construed to authorize a
7municipality to impose a tax upon the privilege of engaging in
8any business which under the constitution of the United States
9may not be made the subject of taxation by this State.
10    When certifying the amount of a monthly disbursement to a
11municipality under this Section, the Department shall increase
12or decrease such amount by an amount necessary to offset any
13misallocation of previous disbursements. The offset amount
14shall be the amount erroneously disbursed within the previous 6
15months from the time a misallocation is discovered.
16    The Department of Revenue shall implement this amendatory
17Act of the 91st General Assembly so as to collect the tax on
18and after January 1, 2002.
19    As used in this Section, "municipal" and "municipality"
20means a city, village or incorporated town, including an
21incorporated town which has superseded a civil township.
22    This Section shall be known and may be cited as the
23"Non-Home Rule Municipal Retailers' Occupation Tax Act".
24(Source: P.A. 99-217, eff. 7-31-15.)
 
25    (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)

 

 

HB3187- 11 -LRB100 09074 AWJ 19225 b

1    Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
2Tax Act. The corporate authorities of a non-home rule
3municipality may impose a tax upon all persons engaged, in such
4municipality, in the business of making sales of service for
5expenditure on public infrastructure or for property tax relief
6or both as defined in Section 8-11-1.2 if approved by
7referendum as provided in Section 8-11-1.1, of the selling
8price of all tangible personal property transferred by such
9servicemen either in the form of tangible personal property or
10in the form of real estate as an incident to a sale of service.
11If the tax is approved by referendum on or after July 14, 2010
12(the effective date of Public Act 96-1057), the corporate
13authorities of a non-home rule municipality may, until December
1431, 2020, use the proceeds of the tax for expenditure on
15municipal operations, in addition to or in lieu of any
16expenditure on public infrastructure or for property tax
17relief. The tax imposed may not be more than 1.5% 1% and may be
18imposed only in 1/4% increments. The tax may not be imposed on
19the sale of food for human consumption that is to be consumed
20off the premises where it is sold (other than alcoholic
21beverages, soft drinks, and food that has been prepared for
22immediate consumption) and prescription and nonprescription
23medicines, drugs, medical appliances, and insulin, urine
24testing materials, syringes, and needles used by diabetics. The
25tax imposed by a municipality pursuant to this Section and all
26civil penalties that may be assessed as an incident thereof

 

 

HB3187- 12 -LRB100 09074 AWJ 19225 b

1shall be collected and enforced by the State Department of
2Revenue. The certificate of registration which is issued by the
3Department to a retailer under the Retailers' Occupation Tax
4Act or under the Service Occupation Tax Act shall permit such
5registrant to engage in a business which is taxable under any
6ordinance or resolution enacted pursuant to this Section
7without registering separately with the Department under such
8ordinance or resolution or under this Section. The Department
9shall have full power to administer and enforce this Section;
10to collect all taxes and penalties due hereunder; to dispose of
11taxes and penalties so collected in the manner hereinafter
12provided, and to determine all rights to credit memoranda
13arising on account of the erroneous payment of tax or penalty
14hereunder. In the administration of, and compliance with, this
15Section the Department and persons who are subject to this
16Section shall have the same rights, remedies, privileges,
17immunities, powers and duties, and be subject to the same
18conditions, restrictions, limitations, penalties and
19definitions of terms, and employ the same modes of procedure,
20as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
21respect to all provisions therein other than the State rate of
22tax), 4 (except that the reference to the State shall be to the
23taxing municipality), 5, 7, 8 (except that the jurisdiction to
24which the tax shall be a debt to the extent indicated in that
25Section 8 shall be the taxing municipality), 9 (except as to
26the disposition of taxes and penalties collected, and except

 

 

HB3187- 13 -LRB100 09074 AWJ 19225 b

1that the returned merchandise credit for this municipal tax may
2not be taken against any State tax), 10, 11, 12 (except the
3reference therein to Section 2b of the Retailers' Occupation
4Tax Act), 13 (except that any reference to the State shall mean
5the taxing municipality), the first paragraph of Section 15,
616, 17, 18, 19 and 20 of the Service 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 municipality may impose a tax under this Section unless
10the municipality also imposes a tax at the same rate under
11Section 8-11-1.3 of this Code.
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 municipal retailers' occupation tax fund.

 

 

HB3187- 14 -LRB100 09074 AWJ 19225 b

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. Within 10 days
26after receipt, by the Comptroller, of the disbursement

 

 

HB3187- 15 -LRB100 09074 AWJ 19225 b

1certification to the municipalities and the General Revenue
2Fund, provided for in this Section to be given to the
3Comptroller by the Department, the Comptroller shall cause the
4orders to be drawn for the respective amounts in accordance
5with the directions contained in such certification.
6    The Department of Revenue shall implement this amendatory
7Act of the 91st General Assembly so as to collect the tax on
8and after January 1, 2002.
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    As used in this Section, "municipal" or "municipality"
14means or refers to a city, village or incorporated town,
15including an incorporated town which has superseded a civil
16township.
17    This Section shall be known and may be cited as the
18"Non-Home Rule Municipal Service Occupation Tax Act".
19(Source: P.A. 96-939, eff. 6-24-10; 96-1057, eff. 7-14-10;
2097-333, eff. 8-12-11; 97-837, eff. 7-20-12.)
 
21    (65 ILCS 5/8-11-1.5)  (from Ch. 24, par. 8-11-1.5)
22    Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The
23corporate authorities of a non-home rule municipality may
24impose a tax upon the privilege of using, in such municipality,
25any item of tangible personal property which is purchased at

 

 

HB3187- 16 -LRB100 09074 AWJ 19225 b

1retail from a retailer, and which is titled or registered with
2an agency of this State's government, based on the selling
3price of such tangible personal property, as "selling price" is
4defined in the Use Tax Act, for expenditure on public
5infrastructure or for property tax relief or both as defined in
6Section 8-11-1.2, if approved by referendum as provided in
7Section 8-11-1.1. If the tax is approved by referendum on or
8after the effective date of this amendatory Act of the 96th
9General Assembly, the corporate authorities of a non-home rule
10municipality may, until December 31, 2020, use the proceeds of
11the tax for expenditure on municipal operations, in addition to
12or in lieu of any expenditure on public infrastructure or for
13property tax relief. The tax imposed may not be more than 1.5%
141% and may be imposed only in 1/4% increments. Such tax shall
15be collected from persons whose Illinois address for title or
16registration purposes is given as being in such municipality.
17Such tax shall be collected by the municipality imposing such
18tax. A non-home rule municipality may not impose and collect
19the tax 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. 96-1057, eff. 7-14-10; 97-837, eff. 7-20-12.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.