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91_HB0523enr
HB0523 Enrolled LRB9102505MWcd
1 AN ACT to amend the Illinois Municipal Code by changing
2 Sections 8-11-1.1, 8-11-1.3, 8-11-1.4, and 8-11-1.5.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 1. Legislative intent. State and federal
6 governments and organizations have studied the changing
7 habits of consumer purchasing and are discussing a movement
8 from retailers' occupation taxes to taxes which are more
9 efficiently collected from catalog and electronic commerce
10 vendors of tangible personal property. It is the intent of
11 the General Assembly that this amendatory Act of the 91st
12 General Assembly contain a delayed collection date until
13 January 1, 2002 to allow additional time for the study of the
14 effects of a shift in the methods of imposing and collecting
15 taxes on consumption.
16 Section 5. The Illinois Municipal Code is amended by
17 changing Sections 8-11-1.1, 8-11-1.3, 8-11-1.4, and 8-11-1.5
18 as follows:
19 (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
20 Sec. 8-11-1.1. Non-home rule municipalities; imposition
21 of taxes.
22 (a) The corporate authorities of a non-home rule
23 municipality with a population greater than 130,000 but less
24 than 2,000,000 may, upon approval of the electors of the
25 municipality pursuant to subsection (b) of this Section,
26 impose by ordinance or resolution the 1/2 of 1% tax
27 authorized in Sections 8-11-1.3, 8-11-1.4 and 8-11-1.5 of
28 this Act.
29 (b) The corporate authorities of the municipality may by
30 ordinance or resolution call for the submission to the
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1 electors of the municipality the question of whether the
2 municipality shall impose such tax. Such question shall be
3 certified by the municipal clerk to the election authority in
4 accordance with Section 28-5 of the Election Code and shall
5 be in a form in accordance with Section 16-7 of the Election
6 Code.
7 If a majority of the electors in the municipality voting
8 upon the question vote in the affirmative, such tax shall be
9 imposed.
10 An ordinance or resolution imposing the 1/2 of 1% tax
11 hereunder or discontinuing the same shall be adopted and a
12 certified copy thereof, together with a certification that
13 the ordinance or resolution received referendum approval in
14 the case of the imposition of such tax, filed with the
15 Department of Revenue, on or before the first day of June,
16 whereupon the Department shall proceed to administer and
17 enforce the additional tax or to discontinue the tax, as the
18 case may be, as of the first day of September next following
19 such adoption and filing. Beginning January 1, 1992, an
20 ordinance or resolution imposing or discontinuing the tax
21 hereunder shall be adopted and a certified copy thereof filed
22 with the Department on or before the first day of July,
23 whereupon the Department shall proceed to administer and
24 enforce this Section as of the first day of October next
25 following such adoption and filing. Beginning January 1,
26 1993, an ordinance or resolution imposing or discontinuing
27 the tax hereunder shall be adopted and a certified copy
28 thereof filed with the Department on or before the first day
29 of October, whereupon the Department shall proceed to
30 administer and enforce this Section as of the first day of
31 January next following such adoption and filing. A non-home
32 rule municipality may file a certified copy of an ordinance
33 or resolution, with a certification that the ordinance or
34 resolution received referendum approval in the case of the
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1 imposition of the tax, with the Department of Revenue, as
2 required under this Section, only after October 2, 2000.
3 (Source: P.A. 86-928; 87-205.)
4 (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
5 Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
6 Occupation Tax Act. The corporate authorities of a non-home
7 rule municipality with more than 130,000 but less than
8 2,000,000 inhabitants may impose a tax upon all persons
9 engaged in the business of selling tangible personal
10 property, other than on an item of tangible personal property
11 which is titled and registered by an agency of this State's
12 Government, at retail in the municipality at the rate of 1/2
13 of 1% for expenditure on public infrastructure as defined in
14 Section 8-11-1.2 if approved by referendum as provided in
15 Section 8-11-1.1, of the gross receipts from such sales made
16 in the course of such business. The tax may not be imposed on
17 the sale of food for human consumption that is to be consumed
18 off the premises where it is sold (other than alcoholic
19 beverages, soft drinks, and food that has been prepared for
20 immediate consumption) and prescription and nonprescription
21 medicines, drugs, medical appliances, and insulin, urine
22 testing materials, syringes, and needles used by diabetics.
23 The tax imposed by a municipality pursuant to this Section
24 and all civil penalties that may be assessed as an incident
25 thereof shall be collected and enforced by the State
26 Department of Revenue. The certificate of registration which
27 is issued by the Department to a retailer under the
28 Retailers' Occupation Tax Act shall permit such retailer to
29 engage in a business which is taxable under any ordinance or
30 resolution enacted pursuant to this Section without
31 registering separately with the Department under such
32 ordinance or resolution or under this Section. The
33 Department shall have full power to administer and enforce
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1 this Section; to collect all taxes and penalties due
2 hereunder; to dispose of taxes and penalties so collected in
3 the manner hereinafter provided, and to determine all rights
4 to credit memoranda, arising on account of the erroneous
5 payment of tax or penalty hereunder. In the administration
6 of, and compliance with, this Section, the Department and
7 persons who are subject to this Section shall have the same
8 rights, remedies, privileges, immunities, powers and duties,
9 and be subject to the same conditions, restrictions,
10 limitations, penalties and definitions of terms, and employ
11 the same modes of procedure, as are prescribed in Sections 1,
12 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to
13 all provisions therein other than the State rate of tax), 2c,
14 3 (except as to the disposition of taxes and penalties
15 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
16 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
17 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
18 Penalty and Interest Act as fully as if those provisions were
19 set forth herein.
20 No municipality may impose a tax under this Section
21 unless the municipality also imposes a tax at the same rate
22 under Section 8-11-1.4 of this Code.
23 Persons subject to any tax imposed pursuant to the
24 authority granted in this Section may reimburse themselves
25 for their seller's tax liability hereunder by separately
26 stating such tax as an additional charge, which charge may be
27 stated in combination, in a single amount, with State tax
28 which sellers are required to collect under the Use Tax Act,
29 pursuant to such bracket schedules as the Department may
30 prescribe.
31 Whenever the Department determines that a refund should
32 be made under this Section to a claimant instead of issuing a
33 credit memorandum, the Department shall notify the State
34 Comptroller, who shall cause the order to be drawn for the
HB0523 Enrolled -5- LRB9102505MWcd
1 amount specified, and to the person named, in such
2 notification from the Department. Such refund shall be paid
3 by the State Treasurer out of the non-home rule municipal
4 retailers' occupation tax fund.
5 The Department shall forthwith pay over to the State
6 Treasurer, ex officio, as trustee, all taxes and penalties
7 collected hereunder. On or before the 25th day of each
8 calendar month, the Department shall prepare and certify to
9 the Comptroller the disbursement of stated sums of money to
10 named municipalities, the municipalities to be those from
11 which retailers have paid taxes or penalties hereunder to the
12 Department during the second preceding calendar month. The
13 amount to be paid to each municipality shall be the amount
14 (not including credit memoranda) collected hereunder during
15 the second preceding calendar month by the Department plus an
16 amount the Department determines is necessary to offset any
17 amounts which were erroneously paid to a different taxing
18 body, and not including an amount equal to the amount of
19 refunds made during the second preceding calendar month by
20 the Department on behalf of such municipality, and not
21 including any amount which the Department determines is
22 necessary to offset any amounts which were payable to a
23 different taxing body but were erroneously paid to the
24 municipality. Within 10 days after receipt, by the
25 Comptroller, of the disbursement certification to the
26 municipalities, provided for in this Section to be given to
27 the Comptroller by the Department, the Comptroller shall
28 cause the orders to be drawn for the respective amounts in
29 accordance with the directions contained in such
30 certification.
31 For the purpose of determining the local governmental
32 unit whose tax is applicable, a retail sale, by a producer of
33 coal or other mineral mined in Illinois, is a sale at retail
34 at the place where the coal or other mineral mined in
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1 Illinois is extracted from the earth. This paragraph does
2 not apply to coal or other mineral when it is delivered or
3 shipped by the seller to the purchaser at a point outside
4 Illinois so that the sale is exempt under the Federal
5 Constitution as a sale in interstate or foreign commerce.
6 Nothing in this Section shall be construed to authorize a
7 municipality to impose a tax upon the privilege of engaging
8 in any business which under the constitution of the United
9 States may not be made the subject of taxation by this State.
10 When certifying the amount of a monthly disbursement to a
11 municipality under this Section, the Department shall
12 increase or decrease such amount by an amount necessary to
13 offset any misallocation of previous disbursements. The
14 offset amount shall be the amount erroneously disbursed
15 within the previous 6 months from the time a misallocation is
16 discovered.
17 The Department of Revenue shall implement this amendatory
18 Act of the 91st General Assembly so as to collect the tax on
19 and after January 1, 2002.
20 As used in this Section, "municipal" and "municipality"
21 means a city, village or incorporated town, including an
22 incorporated town which has superseded a civil township.
23 This Section shall be known and may be cited as the
24 "Non-Home Rule Municipal Retailers' Occupation Tax Act".
25 (Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
26 (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
27 Sec. 8-11-1.4. Non-Home Rule Municipal Service
28 Occupation Tax Act. The corporate authorities of a non-home
29 rule municipality with a population of more than 130,000 but
30 less than 2,000,000 may impose a tax upon all persons
31 engaged, in such municipality, in the business of making
32 sales of service at the rate of 1/2 of 1% for expenditure on
33 public infrastructure as defined in Section 8-11-1.2 if
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1 approved by referendum as provided in Section 8-11-1.1, of
2 the selling price of all tangible personal property
3 transferred by such servicemen either in the form of tangible
4 personal property or in the form of real estate as an
5 incident to a sale of service. The tax may not be imposed on
6 the sale of food for human consumption that is to be consumed
7 off the premises where it is sold (other than alcoholic
8 beverages, soft drinks, and food that has been prepared for
9 immediate consumption) and prescription and nonprescription
10 medicines, drugs, medical appliances, and insulin, urine
11 testing materials, syringes, and needles used by diabetics.
12 The tax imposed by a municipality pursuant to this Section
13 and all civil penalties that may be assessed as an incident
14 thereof shall be collected and enforced by the State
15 Department of Revenue. The certificate of registration which
16 is issued by the Department to a retailer under the
17 Retailers' Occupation Tax Act or under the Service Occupation
18 Tax Act shall permit such registrant to engage in a business
19 which is taxable under any ordinance or resolution enacted
20 pursuant to this Section without registering separately with
21 the Department under such ordinance or resolution or under
22 this Section. The Department shall have full power to
23 administer and enforce this Section; to collect all taxes and
24 penalties due hereunder; to dispose of taxes and penalties so
25 collected in the manner hereinafter provided, and to
26 determine all rights to credit memoranda arising on account
27 of the erroneous payment of tax or penalty hereunder. In the
28 administration of, and compliance with, this Section the
29 Department and persons who are subject to this Section shall
30 have the same rights, remedies, privileges, immunities,
31 powers and duties, and be subject to the same conditions,
32 restrictions, limitations, penalties and definitions of
33 terms, and employ the same modes of procedure, as are
34 prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
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1 respect to all provisions therein other than the State rate
2 of tax), 4 (except that the reference to the State shall be
3 to the taxing municipality), 5, 7, 8 (except that the
4 jurisdiction to which the tax shall be a debt to the extent
5 indicated in that Section 8 shall be the taxing
6 municipality), 9 (except as to the disposition of taxes and
7 penalties collected, and except that the returned merchandise
8 credit for this municipal tax may not be taken against any
9 State tax), 10, 11, 12 (except the reference therein to
10 Section 2b of the Retailers' Occupation Tax Act), 13 (except
11 that any reference to the State shall mean the taxing
12 municipality), the first paragraph of Section 15, 16, 17, 18,
13 19 and 20 of the Service Occupation Tax Act and Section 3-7
14 of the Uniform Penalty and Interest Act, as fully as if those
15 provisions were set forth herein.
16 No municipality may impose a tax under this Section
17 unless the municipality also imposes a tax at the same rate
18 under Section 8-11-1.3 of this Code.
19 Persons subject to any tax imposed pursuant to the
20 authority granted in this Section may reimburse themselves
21 for their serviceman's tax liability hereunder by separately
22 stating such tax as an additional charge, which charge may be
23 stated in combination, in a single amount, with State tax
24 which servicemen are authorized to collect under the Service
25 Use Tax Act, pursuant to such bracket schedules as the
26 Department may prescribe.
27 Whenever the Department determines that a refund should
28 be made under this Section to a claimant instead of issuing
29 credit memorandum, the Department shall notify the State
30 Comptroller, who shall cause the order to be drawn for the
31 amount specified, and to the person named, in such
32 notification from the Department. Such refund shall be paid
33 by the State Treasurer out of the municipal retailers'
34 occupation tax fund.
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1 The Department shall forthwith pay over to the State
2 Treasurer, ex officio, as trustee, all taxes and penalties
3 collected hereunder. On or before the 25th day of each
4 calendar month, the Department shall prepare and certify to
5 the Comptroller the disbursement of stated sums of money to
6 named municipalities, the municipalities to be those from
7 which suppliers and servicemen have paid taxes or penalties
8 hereunder to the Department during the second preceding
9 calendar month. The amount to be paid to each municipality
10 shall be the amount (not including credit memoranda)
11 collected hereunder during the second preceding calendar
12 month by the Department, and not including an amount equal to
13 the amount of refunds made during the second preceding
14 calendar month by the Department on behalf of such
15 municipality. Within 10 days after receipt, by the
16 Comptroller, of the disbursement certification to the
17 municipalities and the General Revenue Fund, provided for in
18 this Section to be given to the Comptroller by the
19 Department, the Comptroller shall cause the orders to be
20 drawn for the respective amounts in accordance with the
21 directions contained in such certification.
22 The Department of Revenue shall implement this amendatory
23 Act of the 91st General Assembly so as to collect the tax on
24 and after January 1, 2002.
25 Nothing in this Section shall be construed to authorize a
26 municipality to impose a tax upon the privilege of engaging
27 in any business which under the constitution of the United
28 States may not be made the subject of taxation by this State.
29 As used in this Section, "municipal" or "municipality"
30 means or refers to a city, village or incorporated town,
31 including an incorporated town which has superseded a civil
32 township.
33 This Section shall be known and may be cited as the
34 "Non-Home Rule Municipal Service Occupation Tax Act".
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1 (Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
2 (65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5)
3 Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The
4 corporate authorities of a non-home rule municipality with a
5 population greater than 130,000 but less than 2,000,000 may
6 impose a tax upon the privilege of using, in such
7 municipality, any item of tangible personal property which is
8 purchased at retail from a retailer, and which is titled or
9 registered with an agency of this State's government, at a
10 rate of 1/2 of 1% and based on the selling price of such
11 tangible personal property, as "selling price" is defined in
12 the Use Tax Act, for expenditure on public infrastructure as
13 defined in Section 8-11-1.2, if approved by referendum as
14 provided in Section 8-11-1.1. Such tax shall be collected
15 from persons whose Illinois address for title or registration
16 purposes is given as being in such municipality. Such tax
17 shall be collected by the municipality imposing such tax. A
18 non-home rule municipality may not impose and collect the tax
19 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. 86-928.)
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