093_HB1730eng HB1730 Engrossed LRB093 04800 MKM 04856 b 1 AN ACT in relation to municipalities. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Municipal Code is amended by 5 changing Section 8-11-1.3 as follows: 6 (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3) 7 Sec. 8-11-1.3. Non-Home Rule Municipal Retailers' 8 Occupation Tax Act. The corporate authorities of a non-home 9 rule municipality may impose a tax upon all persons engaged 10 in the business of selling tangible personal property, other 11 than on an item of tangible personal property thatwhichis 12 titled and registered by an agency of this State's 13 Government, at retail in the municipality for expenditure on 14 public infrastructure or for property tax relief or both as 15 defined in Section 8-11-1.2 if approved by referendum as 16 provided in Section 8-11-1.1, of the gross receipts from such 17 sales made in the course of such business. The tax imposed 18 may not be more than 1/2 of 1% and may be imposed only in 19 1/4% increments. The tax may not be imposed on the sale of 20 food for human consumption that is to be consumed off the 21 premises where it is sold (other than alcoholic beverages, 22 soft drinks, and food that has been prepared for immediate 23 consumption) and prescription and nonprescription medicines, 24 drugs, medical appliances, and insulin, urine testing 25 materials, syringes, and needles used by diabetics. The tax 26 imposed by a municipality pursuant to this Section and all 27 civil penalties that may be assessed as an incident thereof 28 shall be collected and enforced by the State Department of 29 Revenue. The certificate of registration which is issued by 30 the Department to a retailer under the Retailers' Occupation 31 Tax Act shall permit such retailer to engage in a business HB1730 Engrossed -2- LRB093 04800 MKM 04856 b 1 which is taxable under any ordinance or resolution enacted 2 pursuant to this Section without registering separately with 3 the Department under such ordinance or resolution or under 4 this Section. The Department shall have full power to 5 administer and enforce this Section; to collect all taxes and 6 penalties due hereunder; to dispose of taxes and penalties so 7 collected in the manner hereinafter provided, and to 8 determine all rights to credit memoranda, arising on account 9 of the erroneous payment of tax or penalty hereunder. In the 10 administration of, and compliance with, this Section, the 11 Department and persons who are subject to this Section shall 12 have the same rights, remedies, privileges, immunities, 13 powers and duties, and be subject to the same conditions, 14 restrictions, limitations, penalties and definitions of 15 terms, and employ the same modes of procedure, as are 16 prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 17 through 2-65 (in respect to all provisions therein other than 18 the State rate of tax), 2c, 3 (except as to the disposition 19 of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 20 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 21 12 and 13 of the Retailers' Occupation Tax Act and Section 22 3-7 of the Uniform Penalty and Interest Act as fully as if 23 those provisions were set forth herein. 24 No municipality may impose a tax under this Section 25 unless the municipality also imposes a tax at the same rate 26 under Section 8-11-1.4 of this Code. 27 Persons subject to any tax imposed pursuant to the 28 authority granted in this Section may reimburse themselves 29 for their seller's tax liability hereunder by separately 30 stating such tax as an additional charge, which charge may be 31 stated in combination, in a single amount, with State tax 32 which sellers are required to collect under the Use Tax Act, 33 pursuant to such bracket schedules as the Department may 34 prescribe. HB1730 Engrossed -3- LRB093 04800 MKM 04856 b 1 Whenever the Department determines that a refund should 2 be made under this Section to a claimant instead of issuing a 3 credit memorandum, the Department shall notify the State 4 Comptroller, who shall cause the order to be drawn for the 5 amount specified, and to the person named, in such 6 notification from the Department. Such refund shall be paid 7 by the State Treasurer out of the non-home rule municipal 8 retailers' occupation tax fund. 9 The Department shall forthwith pay over to the State 10 Treasurer, ex officio, as trustee, all taxes and penalties 11 collected hereunder. On or before the 25th day of each 12 calendar month, the Department shall prepare and certify to 13 the Comptroller the disbursement of stated sums of money to 14 named municipalities, the municipalities to be those from 15 which retailers have paid taxes or penalties hereunder to the 16 Department during the second preceding calendar month. The 17 amount to be paid to each municipality shall be the amount 18 (not including credit memoranda) collected hereunder during 19 the second preceding calendar month by the Department plus an 20 amount the Department determines is necessary to offset any 21 amounts which were erroneously paid to a different taxing 22 body, and not including an amount equal to the amount of 23 refunds made during the second preceding calendar month by 24 the Department on behalf of such municipality, and not 25 including any amount which the Department determines is 26 necessary to offset any amounts which were payable to a 27 different taxing body but were erroneously paid to the 28 municipality. Within 10 days after receipt, by the 29 Comptroller, of the disbursement certification to the 30 municipalities, provided for in this Section to be given to 31 the Comptroller by the Department, the Comptroller shall 32 cause the orders to be drawn for the respective amounts in 33 accordance with the directions contained in such 34 certification. HB1730 Engrossed -4- LRB093 04800 MKM 04856 b 1 For the purpose of determining the local governmental 2 unit whose tax is applicable, a retail sale, by a producer of 3 coal or other mineral mined in Illinois, is a sale at retail 4 at the place where the coal or other mineral mined in 5 Illinois is extracted from the earth. This paragraph does 6 not apply to coal or other mineral when it is delivered or 7 shipped by the seller to the purchaser at a point outside 8 Illinois so that the sale is exempt under the Federal 9 Constitution as a sale in interstate or foreign commerce. 10 Nothing in this Section shall be construed to authorize a 11 municipality to impose a tax upon the privilege of engaging 12 in any business which under the constitution of the United 13 States may not be made the subject of taxation by this State. 14 When certifying the amount of a monthly disbursement to a 15 municipality under this Section, the Department shall 16 increase or decrease such amount by an amount necessary to 17 offset any misallocation of previous disbursements. The 18 offset amount shall be the amount erroneously disbursed 19 within the previous 6 months from the time a misallocation is 20 discovered. 21 The Department of Revenue shall implement this amendatory 22 Act of the 91st General Assembly so as to collect the tax on 23 and after January 1, 2002. 24 As used in this Section, "municipal" and "municipality" 25 means a city, village or incorporated town, including an 26 incorporated town which has superseded a civil township. 27 This Section shall be known and may be cited as the 28 "Non-Home Rule Municipal Retailers' Occupation Tax Act". 29 (Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00; 30 92-739, eff. 1-1-03.)