SB2677 94TH GENERAL ASSEMBLY

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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2677

Introduced 1/20/2006, by Sen. Don Harmon

SYNOPSIS AS INTRODUCED:

65 ILCS 5/8-11-6c new

Amends the Illinois Municipal Code. Sets forth procedures for the Department of Revenue to collect a use tax imposed by a home rule municipality upon the privilege of using motor vehicles that are acquired by nonretail purchase, gift, or transfer.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

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 adding Section 8-11-6c as follows:

(65 ILCS 5/8-11-6c new)

Sec. 8-11-6c. Collection of certain vehicle use taxes.

(a) Whenever any home rule municipality imposes a tax upon the privilege of using in that municipality any motor vehicle that is acquired by nonretail purchase, gift, or transfer, the municipality may enter into an agreement with the Illinois Department of Revenue for that Department to collect the tax on behalf of the municipality.

(b) During the term of the agreement the tax shall be remitted to the State, or an exemption determination must be obtained from the Department before the title or certificate of registration for the property may be issued. The tax or proof of exemption may be transmitted to the Department by way of the State agency with which, or State officer with whom, the tangible personal property must be titled or registered if the Department and that agency or State officer determine that this procedure will expedite the processing of applications for title or registration.

(c) The Department shall have full power to administer and enforce this Section; to collect all taxes, penalties, and interest due hereunder; to dispose of taxes, penalties, and interest so collected in the manner provided in subsection (d), and to determine all rights to credit memoranda or refunds arising on account of the erroneous payment of tax, penalty, or interest hereunder. In the administration of, and compliance with, this Section, the Department and persons who are subject to this Section shall have the same procedural 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 the Use Tax Act, as now or hereafter amended, that are not inconsistent with this Section, as fully as if provisions contained in the Use Tax Act were set forth in this Section.

(d) (1) 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 for which taxes or penalties were paid hereunder to the Department during the second preceding calendar month:

(i) an amount to be paid to each municipality, which shall equal the taxes and penalties collected by the Department for the municipality pursuant to this Section during the preceding calendar month, less 2% of the total amount of taxes and penalties collected by the Department for the municipality pursuant to this Section or the actual cost of collection of such taxes and penalties determined pursuant to the agreement, whichever is less, which shall be retained by the State; and

(ii) the total amount to be retained by the State pursuant to subparagraph (i), such amount to be deposited into the General Revenue Fund of the State treasury and used to cover the costs incurred by the Department in collecting such taxes and penalties.

(2) Within 7 days after receiving the certifications described in paragraph (1), the Comptroller shall issue orders for payment of the amounts specified in subparagraph (i) of paragraph (1).