Public Act 096-1057
 
SB3134 EnrolledLRB096 20281 RLJ 35887 b


  
    AN ACT concerning local government.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  
 
 
    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
may, upon approval of the electors of the 
municipality pursuant to
subsection (b) of this Section, impose 
by ordinance or resolution the 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.
    Notwithstanding any provision of law to the contrary, if 
the proceeds of the tax may be used for municipal operations 
pursuant to Section 8-11-1.3, 8-11-1.4, or 8-11-1.5, then the 
election authority must submit the question in substantially 
the following form: 
        Shall the corporate authorities of the municipality be 
    authorized to levy a tax at a rate of (rate)%  for 
    expenditures on municipal operations, expenditures on 
    public infrastructure, or property tax relief? 
    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 tax of not more 
than 1% 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.
Beginning October 1, 2002, 
an ordinance or resolution imposing or
discontinuing the tax

under this Section or effecting a change in the rate of tax 
must either (i) be
adopted
and a
certified copy of the 
ordinance or resolution filed with the Department on or
before 
the first day
of April,
whereupon the Department shall proceed 
to administer and enforce this Section
as of the
first day of 
July next following the adoption and filing; or (ii) be adopted

and a certified
copy of the ordinance or resolution 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 the 
adoption and filing.

    Notwithstanding any provision in this Section to the 
contrary, if, in a non-home rule municipality with more than 
150,000 but fewer than 200,000 inhabitants, as determined by 
the last preceding federal decennial census, an ordinance or 
resolution under this Section imposes or discontinues a tax or 
changes the tax rate as of July 1, 2007, then that ordinance or 
resolution, together with a certification that the
ordinance or 
resolution received referendum approval in the case of the

imposition of the tax, must be adopted and a certified copy of 
that ordinance or resolution must be filed with the Department 
on or before May 15, 2007, whereupon the Department shall 
proceed to administer and enforce this Section as of July 1, 
2007.

    Notwithstanding any provision in this Section to the 
contrary, if, in a non-home rule municipality with more than 
6,500 but fewer than 7,000 inhabitants, as determined by the 
last preceding federal decennial census, an ordinance or 
resolution under this Section imposes or discontinues a tax or 
changes the tax rate on or before May  20, 2009, then that 
ordinance or resolution, together with a certification that the

ordinance or resolution received referendum approval in the 
case of the
imposition of the tax, must be adopted and a 
certified copy of that ordinance or resolution must be filed 
with the Department on or before May 20, 2009, whereupon the 
Department shall proceed to administer and enforce this Section 
as of July 1, 2009. 
    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.
    The tax authorized by this Section may not be more than 1% 
and
may be imposed only in 1/4% increments.
(Source: P.A. 95-8, eff. 6-29-07; 96-10, eff. 5-20-09.)
 



    (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 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 for expenditure on
public infrastructure or 
for property tax relief or both 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.
If the tax is approved by referendum on or after the 
effective date of this amendatory Act of the 96th General 
Assembly, the corporate authorities of a non-home rule 
municipality may, until December 31, 2015, 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. The tax imposed may not be more than 1% 
and may be imposed only in
1/4% increments. 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. 94-679, eff. 1-1-06.)

 



    (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 may impose a
tax upon all persons engaged, in such 
municipality, in the business of
making sales of service for 
expenditure on
public infrastructure or for property tax relief 
or both 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.

If the tax is approved by referendum on or after the effective 
date of this amendatory Act of the 96th General Assembly, the 
corporate authorities of a non-home rule municipality may, 
until December 31, 2015, 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. The tax imposed may not be more than 1% and may be 
imposed only in
1/4% increments. 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. 94-679, eff. 1-1-06.)

 



    (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 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, 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 or for property tax relief or both as defined in

Section 8-11-1.2, if approved by
referendum as provided in 
Section 8-11-1.1. If the tax is approved by referendum on or 
after the effective date of this amendatory Act of the 96th 
General Assembly, the corporate authorities of a non-home rule 
municipality may, until December 31, 2015, 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. The tax imposed may not be more
than 1% 
and may be imposed only in 1/4% increments. 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. 94-679, eff. 1-1-06.)

 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.