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Public Act 91-0649
HB0523 Enrolled LRB9102505MWcd
AN ACT to amend the Illinois Municipal Code by changing
Sections 8-11-1.1, 8-11-1.3, 8-11-1.4, and 8-11-1.5.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Legislative intent. State and federal
governments and organizations have studied the changing
habits of consumer purchasing and are discussing a movement
from retailers' occupation taxes to taxes which are more
efficiently collected from catalog and electronic commerce
vendors of tangible personal property. It is the intent of
the General Assembly that this amendatory Act of the 91st
General Assembly contain a delayed collection date until
January 1, 2002 to allow additional time for the study of the
effects of a shift in the methods of imposing and collecting
taxes on consumption.
Section 5. The Illinois Municipal Code is amended by
changing Sections 8-11-1.1, 8-11-1.3, 8-11-1.4, and 8-11-1.5
as follows:
(65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
Sec. 8-11-1.1. Non-home rule municipalities; imposition
of taxes.
(a) The corporate authorities of a non-home rule
municipality with a population greater than 130,000 but less
than 2,000,000 may, upon approval of the electors of the
municipality pursuant to subsection (b) of this Section,
impose by ordinance or resolution the 1/2 of 1% tax
authorized in Sections 8-11-1.3, 8-11-1.4 and 8-11-1.5 of
this Act.
(b) The corporate authorities of the municipality may by
ordinance or resolution call for the submission to the
electors of the municipality the question of whether the
municipality shall impose such tax. Such question shall be
certified by the municipal clerk to the election authority in
accordance with Section 28-5 of the Election Code and shall
be in a form in accordance with Section 16-7 of the Election
Code.
If a majority of the electors in the municipality voting
upon the question vote in the affirmative, such tax shall be
imposed.
An ordinance or resolution imposing the 1/2 of 1% tax
hereunder or discontinuing the same shall be adopted and a
certified copy thereof, together with a certification that
the ordinance or resolution received referendum approval in
the case of the imposition of such tax, filed with the
Department of Revenue, on or before the first day of June,
whereupon the Department shall proceed to administer and
enforce the additional tax or to discontinue the tax, as the
case may be, as of the first day of September next following
such adoption and filing. Beginning January 1, 1992, an
ordinance or resolution imposing or discontinuing the tax
hereunder shall be adopted and a certified copy thereof filed
with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1,
1993, an ordinance or resolution imposing or discontinuing
the tax hereunder shall be adopted and a certified copy
thereof filed with the Department on or before the first day
of October, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
January next following such adoption and filing. A non-home
rule municipality may file a certified copy of an ordinance
or resolution, with a certification that the ordinance or
resolution received referendum approval in the case of the
imposition of the tax, with the Department of Revenue, as
required under this Section, only after October 2, 2000.
(Source: P.A. 86-928; 87-205.)
(65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
Occupation Tax Act. The corporate authorities of a non-home
rule municipality with more than 130,000 but less than
2,000,000 inhabitants may impose a tax upon all persons
engaged in the business of selling tangible personal
property, other than on an item of tangible personal property
which is titled and registered by an agency of this State's
Government, at retail in the municipality at the rate of 1/2
of 1% for expenditure on public infrastructure as defined in
Section 8-11-1.2 if approved by referendum as provided in
Section 8-11-1.1, of the gross receipts from such sales made
in the course of such business. The tax may not be imposed on
the sale of food for human consumption that is to be consumed
off the premises where it is sold (other than alcoholic
beverages, soft drinks, and food that has been prepared for
immediate consumption) and prescription and nonprescription
medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics.
The tax imposed by a municipality pursuant to this Section
and all civil penalties that may be assessed as an incident
thereof shall be collected and enforced by the State
Department of Revenue. The certificate of registration which
is issued by the Department to a retailer under the
Retailers' Occupation Tax Act shall permit such retailer to
engage in a business which is taxable under any ordinance or
resolution enacted pursuant to this Section without
registering separately with the Department under such
ordinance or resolution or under this Section. The
Department shall have full power to administer and enforce
this Section; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided, and to determine all rights
to credit memoranda, arising on account of the erroneous
payment of tax or penalty hereunder. In the administration
of, and compliance with, this Section, the Department and
persons who are subject to this Section shall have the same
rights, remedies, privileges, immunities, powers and duties,
and be subject to the same conditions, restrictions,
limitations, penalties and definitions of terms, and employ
the same modes of procedure, as are prescribed in Sections 1,
1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to
all provisions therein other than the State rate of tax), 2c,
3 (except as to the disposition of taxes and penalties
collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act as fully as if those provisions were
set forth herein.
No municipality may impose a tax under this Section
unless the municipality also imposes a tax at the same rate
under Section 8-11-1.4 of this Code.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves
for their seller's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax
which sellers are required to collect under the Use Tax Act,
pursuant to such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should
be made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid
by the State Treasurer out of the non-home rule municipal
retailers' occupation tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder. On or before the 25th day of each
calendar month, the Department shall prepare and certify to
the Comptroller the disbursement of stated sums of money to
named municipalities, the municipalities to be those from
which retailers have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount
(not including credit memoranda) collected hereunder during
the second preceding calendar month by the Department plus an
amount the Department determines is necessary to offset any
amounts which were erroneously paid to a different taxing
body, and not including an amount equal to the amount of
refunds made during the second preceding calendar month by
the Department on behalf of such municipality, and not
including any amount which the Department determines is
necessary to offset any amounts which were payable to a
different taxing body but were erroneously paid to the
municipality. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities, provided for in this Section to be given to
the Comptroller by the Department, the Comptroller shall
cause the orders to be drawn for the respective amounts in
accordance with the directions contained in such
certification.
For the purpose of determining the local governmental
unit whose tax is applicable, a retail sale, by a producer of
coal or other mineral mined in Illinois, is a sale at retail
at the place where the coal or other mineral mined in
Illinois is extracted from the earth. This paragraph does
not apply to coal or other mineral when it is delivered or
shipped by the seller to the purchaser at a point outside
Illinois so that the sale is exempt under the Federal
Constitution as a sale in interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging
in any business which under the constitution of the United
States may not be made the subject of taxation by this State.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall
increase or decrease such amount by an amount necessary to
offset any misallocation of previous disbursements. The
offset amount shall be the amount erroneously disbursed
within the previous 6 months from the time a misallocation is
discovered.
The Department of Revenue shall implement this amendatory
Act of the 91st General Assembly so as to collect the tax on
and after January 1, 2002.
As used in this Section, "municipal" and "municipality"
means a city, village or incorporated town, including an
incorporated town which has superseded a civil township.
This Section shall be known and may be cited as the
"Non-Home Rule Municipal Retailers' Occupation Tax Act".
(Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
(65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
Sec. 8-11-1.4. Non-Home Rule Municipal Service
Occupation Tax Act. The corporate authorities of a non-home
rule municipality with a population of more than 130,000 but
less than 2,000,000 may impose a tax upon all persons
engaged, in such municipality, in the business of making
sales of service at the rate of 1/2 of 1% for expenditure on
public infrastructure as defined in Section 8-11-1.2 if
approved by referendum as provided in Section 8-11-1.1, of
the selling price of all tangible personal property
transferred by such servicemen either in the form of tangible
personal property or in the form of real estate as an
incident to a sale of service. The tax may not be imposed on
the sale of food for human consumption that is to be consumed
off the premises where it is sold (other than alcoholic
beverages, soft drinks, and food that has been prepared for
immediate consumption) and prescription and nonprescription
medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics.
The tax imposed by a municipality pursuant to this Section
and all civil penalties that may be assessed as an incident
thereof shall be collected and enforced by the State
Department of Revenue. The certificate of registration which
is issued by the Department to a retailer under the
Retailers' Occupation Tax Act or under the Service Occupation
Tax Act shall permit such registrant to engage in a business
which is taxable under any ordinance or resolution enacted
pursuant to this Section without registering separately with
the Department under such ordinance or resolution or under
this Section. The Department shall have full power to
administer and enforce this Section; to collect all taxes and
penalties due hereunder; to dispose of taxes and penalties so
collected in the manner hereinafter provided, and to
determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty hereunder. In the
administration of, and compliance with, this Section the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities,
powers and duties, and be subject to the same conditions,
restrictions, limitations, penalties and definitions of
terms, and employ the same modes of procedure, as are
prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
respect to all provisions therein other than the State rate
of tax), 4 (except that the reference to the State shall be
to the taxing municipality), 5, 7, 8 (except that the
jurisdiction to which the tax shall be a debt to the extent
indicated in that Section 8 shall be the taxing
municipality), 9 (except as to the disposition of taxes and
penalties collected, and except that the returned merchandise
credit for this municipal tax may not be taken against any
State tax), 10, 11, 12 (except the reference therein to
Section 2b of the Retailers' Occupation Tax Act), 13 (except
that any reference to the State shall mean the taxing
municipality), the first paragraph of Section 15, 16, 17, 18,
19 and 20 of the Service Occupation Tax Act and Section 3-7
of the Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
No municipality may impose a tax under this Section
unless the municipality also imposes a tax at the same rate
under Section 8-11-1.3 of this Code.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves
for their serviceman's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax
which servicemen are authorized to collect under the Service
Use Tax Act, pursuant to such bracket schedules as the
Department may prescribe.
Whenever the Department determines that a refund should
be made under this Section to a claimant instead of issuing
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid
by the State Treasurer out of the municipal retailers'
occupation tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder. On or before the 25th day of each
calendar month, the Department shall prepare and certify to
the Comptroller the disbursement of stated sums of money to
named municipalities, the municipalities to be those from
which suppliers and servicemen have paid taxes or penalties
hereunder to the Department during the second preceding
calendar month. The amount to be paid to each municipality
shall be the amount (not including credit memoranda)
collected hereunder during the second preceding calendar
month by the Department, and not including an amount equal to
the amount of refunds made during the second preceding
calendar month by the Department on behalf of such
municipality. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and the General Revenue Fund, provided for in
this Section to be given to the Comptroller by the
Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification.
The Department of Revenue shall implement this amendatory
Act of the 91st General Assembly so as to collect the tax on
and after January 1, 2002.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging
in any business which under the constitution of the United
States may not be made the subject of taxation by this State.
As used in this Section, "municipal" or "municipality"
means or refers to a city, village or incorporated town,
including an incorporated town which has superseded a civil
township.
This Section shall be known and may be cited as the
"Non-Home Rule Municipal Service Occupation Tax Act".
(Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
(65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5)
Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The
corporate authorities of a non-home rule municipality with a
population greater than 130,000 but less than 2,000,000 may
impose a tax upon the privilege of using, in such
municipality, any item of tangible personal property which is
purchased at retail from a retailer, and which is titled or
registered with an agency of this State's government, at a
rate of 1/2 of 1% and based on the selling price of such
tangible personal property, as "selling price" is defined in
the Use Tax Act, for expenditure on public infrastructure as
defined in Section 8-11-1.2, if approved by referendum as
provided in Section 8-11-1.1. Such tax shall be collected
from persons whose Illinois address for title or registration
purposes is given as being in such municipality. Such tax
shall be collected by the municipality imposing such tax. A
non-home rule municipality may not impose and collect the tax
prior to January 1, 2002.
This Section shall be known and may be cited as the
"Non-Home Rule Municipal Use Tax Act".
(Source: P.A. 86-928.)
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