Section 693.101  Nature of the Non-Home Rule Municipal Retailers' Occupation Tax

 

a)         Authority to Impose Tax

 

1)         Pursuant to the Non-Home Rule Municipal Retailers' Occupation Tax Act [65 ILCS 5/8-11-1.3], the corporate authorities of a non-home rule municipality may impose, by ordinance or resolution adopted in the manner described in Section 8-11-1.1, 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. If imposed, the tax shall be imposed on the gross receipts from such sales made in the course of such business.  The proceeds of the tax may be used for public infrastructure or for property tax relief or both, as defined in Section 8-11-1.2.

 

2)         The tax imposed may not be more than 1% and may be imposed only in ¼% increments.

 

3)         If the tax is approved by referendum on or after July 14, 2010, and before August 5, 2024, the corporate authorities of the non-home rule municipality may, until January 1, 2031, use the proceeds of the tax for expenditure or municipal operations, in addition to or in lieu of any expenditure on public infrastructure or for property tax relief.  If the tax is approved by ordinance or resolution adopted on or after August 5, 2024, the corporate authorities of the non-home rule municipality, may until January 1, 2031, use the proceeds of the tax for expenditure on municipal operations, in addition to or in lieu of any expenditure on public infrastructure or for property tax relief.  [65 ILCS 5/8-11-1.3]

 

4)         The tax may not be imposed on tangible personal property taxed at the 1% rate under the Retailers' Occupation Tax Act [35 ILCS 120]. [65 ILCS 5/8-11-1.3] For guidance on the types of tangible personal property taxed at the 1% rate, see 86 Ill. Adm. Code 130.310 and 130.311.

 

5)         Beginning December 1, 2019, this tax is not imposed on sales of aviation fuel unless the tax revenue is expended for airport-related purposes.  If a municipality does not have an airport-related purpose to which it dedicates aviation fuel tax revenue, then aviation fuel is excluded from the tax.  Each municipality must comply with the certification requirements for airport-related purposes under Section 2-22 of the Retailers' Occupation Tax Act [35 ILCS 120].  [65 ILCS 5/8-11-1.3] "Aviation fuel" means jet fuel and aviation gasoline.  [35 ILCS 120/3] "Airport-related purposes" has the meaning ascribed in Section 6z-20.2 of the State Finance Act [30 ILCS 105].  This exclusion for aviation fuel only applies U.S.C. 47133 are binding on the municipality. 

 

6)         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 Department of Revenue.  [65 ILCS 5/8-11-1.3]

 

b)         Passing on the Tax

The legal incidence of the Non-Home Rule Municipal Retailers' Occupation Tax is on the seller.  Nevertheless, the General Assembly has authorized persons subject to this tax to reimburse themselves for their seller's tax liability 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 [35 ILCS 105], pursuant to such bracket schedules as the Department has prescribed.  [65 ILCS 5/8-11-1.3] (See 86 Ill. Adm. Code 150.Table A).

 

c)         Exclusion from "Gross Receipts"

Any amount added to the selling price of tangible personal property by the seller because of a Non-Home Rule Municipal Retailers' Occupation Tax, the Retailers' Occupation Tax, the Use Tax Act, or any other local occupation tax administered by the Department, and collected from the purchaser, shall not be regarded as a part of the seller's gross receipts that are subject to such Non-Home Rule Municipal Retailers' Occupation Tax.

 

(Source:  Amended at 49 Ill. Reg. 3304, effective February 26, 2025)

 

Section 693.105  Registration and Returns

 

a)         Separate Registration not Required

A retailer's registration under the Retailers' Occupation Tax Act [35 ILCS 120] is sufficient for the purposes of the Non-Home Rule Municipal Retailers' Occupation Tax Act.  No special registration for a Non-Home Rule Municipal Retailers' Occupation Tax Act is required.

 

b)         Requirements as to Returns

 

1)         The information required for the Non-Home Rule Municipal Retailers' Occupation Tax shall be furnished on the Retailers' Occupation Tax return form filed by the retailer.

 

2)         If the retailer files its Retailers' Occupation Tax returns on the gross receipts basis, the retailer must also report its Non-Home Rule Municipal Retailers' Occupation Tax information in its returns on the gross receipts basis.  If the retailer files its Retailers' Occupation Tax returns on the gross sales basis, the retailer must also report Non-Home Rule Municipal Retailers' Occupation Tax information in its returns on the gross sales basis.

 

3)         If applicable, aviation fuel tax returns shall be field in accordance with Section 3 of the Retailers' Occupation Tax Act and 86 Ill. Adm. Code 130.541, except that the retailer's discount is not allowed for taxes paid on aviation fuel that are subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133.  [65 ILCS 5/8-11-1.3]  (See also 86 Ill. Adm. Code 693.101(a)(5)).

 

(Source:  Amended at 49 Ill. Reg. 3304, effective February 26, 2025)

 

Section 693.110  Claims to Recover Erroneously Paid Tax

 

Claims for Multiple Taxes.  If a claimant files a claim for refund on a transaction that was subject to State and local taxes administered by the Department, the claim need not be filed separately for each type of tax.  A single claim for the total of all applicable taxes will suffice. The claim will be audited, heard, or otherwise processed as a single claim whenever possible. A single credit memorandum will be issued that may be used by the claimant or his authorized assignee to pay State or local tax liability as authorized in 86 Ill. Adm. Code 130.1505(b)(1).

 

Section 693.115  Jurisdictional Questions

 

The substance and provisions of 86 Ill. Adm. Code 270.115 of the Home Rule Municipal Retailers' Occupation Tax Regulations which are not incompatible with the Non-Home Rule Municipal Retailers' Occupation Tax Act, shall apply to this Part. References to a "home rule municipality" or "municipality" in Section 270.115 mean "non-home rule municipality" for purposes of this Section. References to the Home Rule Municipal Retailers’ Occupation Tax in Section 270.115 mean Non-Home Rule Municipal Retailers' Occupation Tax for purposes of this Part.

 

When used in this Part, "municipal" and "municipality" mean a city, village or incorporated town, including an incorporated town that has superseded a civil township.

 

(Source:  Amended at 47 Ill. Reg. 2827, effective February 7, 2023)

 

Section 693.120  Retailers' Occupation Tax Regulations

 

To avoid needless repetition, the substance and provisions of all Retailers' Occupation Tax regulations (86 Ill. Adm. Code 130) that are not incompatible with the Non-Home Rule Municipal Retailers' Occupation Tax Act shall apply to the tax imposed pursuant to this Part.

 

Section 693.125  Penalties, Interest and Procedures

 

All penalties (both civil and criminal) and provisions concerning interest and procedures (such as the making of assessments, the venue and mode of conducting hearings, subpoenas, matters pertaining to judicial review and other procedural subjects), together with statutes of limitation, are the same under the Non-Home Rule Municipal Retailers' Occupation Tax Act as under the Illinois Retailers' Occupation Tax Act [35 ILCS 120].

 

Section 693.130  Ordinance Filing Deadlines; When Tax Rate Change Applies

 

a)         If an ordinance or resolution imposing the tax, discontinuing the tax, or effecting a change in the rate of tax under Section 8-11-1.1 of the Act is adopted, a certified copy of the ordinance or resolution, shall be filed with the Department of Revenue, either: 

 

1)         on or before the first day of April, whereupon the Department shall proceed to administer and enforce the ordinance as of the first day of July next following the adoption and filing; or

 

2)         on or before the first day of October, whereupon the Department shall proceed to administer and enforce the ordinance as of the first day of January next following the adoption and filing. [65 ILCS 5/8-11-1.1(c)]

 

b)         Until August 5, 2024, the effective date of P.A. 103-0781, in the case of the imposition of or increase in the tax rate, the corporate authorities must also file a certification that the ordinance or resolution received referendum approval.

 

c)         For purposes of determining which tax rate applies, the date of the sale is deemed to be the date of the delivery of the property.

 

(Source:  Amended at 49 Ill. Reg. 3304, effective February 26, 2025)