Rep. Lisa M. Dugan
Filed: 3/26/2012
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1 | AMENDMENT TO HOUSE BILL 3859
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2 | AMENDMENT NO. ______. Amend House Bill 3859 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Counties Code is amended by changing | ||||||
5 | Section 5-1014.3 as follows:
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6 | (55 ILCS 5/5-1014.3)
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7 | Sec. 5-1014.3. Agreements to share or rebate occupation | ||||||
8 | taxes.
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9 | (a) On and after
June 1, 2004, a county board shall not | ||||||
10 | enter into
any agreement to share or
rebate any portion of
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11 | retailers' occupation taxes generated by retail sales of | ||||||
12 | tangible personal
property if: (1) the tax on those retail | ||||||
13 | sales, absent the agreement,
would have been paid to another | ||||||
14 | unit of local government; and (2) the retailer
maintains, | ||||||
15 | within that other unit of local government, a retail
location | ||||||
16 | from which the tangible personal property is delivered to |
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1 | purchasers,
or a warehouse from which the tangible personal | ||||||
2 | property is delivered to
purchasers. Any unit of local | ||||||
3 | government denied
retailers' occupation tax revenue because of | ||||||
4 | an agreement that violates this
Section may file an action in | ||||||
5 | circuit court against only the county.
Any agreement entered | ||||||
6 | into prior to
June 1,
2004 is not affected by this amendatory | ||||||
7 | Act of the 93rd General Assembly.
Any unit of local
government | ||||||
8 | that prevails in the circuit court action is entitled to | ||||||
9 | damages in
the amount of the tax revenue it was denied as a | ||||||
10 | result of the agreement,
statutory interest, costs, reasonable | ||||||
11 | attorney's fees, and an amount equal to
50% of the tax.
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12 | (b) On and after the effective date of this amendatory Act | ||||||
13 | of the 93rd
General Assembly, a home rule unit shall not enter | ||||||
14 | into any agreement
prohibited
by subsection (a) of this | ||||||
15 | Section. This Section is a denial and limitation of home rule | ||||||
16 | powers
and
functions under subsection (g) of Section 6 of | ||||||
17 | Article VII of the Illinois
Constitution.
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18 | (c) On and after July 1, 2012, a county board shall not
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19 | enter into any tax revenue sharing agreement, as defined in
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20 | subsection (d) of this Section, if: (1) the tax on those retail
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21 | sales, absent the agreement, would have been paid to another
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22 | unit of local government; and (2) the retailer maintains,
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23 | within that other unit of local government, a retail location
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24 | from which the tangible personal property is delivered to
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25 | purchasers, or a warehouse from which the tangible personal
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26 | property is delivered to purchasers. Any unit of local
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1 | government denied retailers' occupation tax revenue because of
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2 | a tax revenue sharing agreement that violates this Section
may | ||||||
3 | file an action in circuit court against only the county.
Any | ||||||
4 | tax revenue sharing agreement entered into prior to July 1,
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5 | 2012 is not affected by this amendatory Act of the 97th General
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6 | Assembly. Any unit of local government that prevails in the
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7 | circuit court action is entitled to damages in the amount of
| ||||||
8 | the tax revenue it was denied as a result of the tax revenue
| ||||||
9 | sharing agreement, statutory interest, costs, reasonable
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10 | attorney's fees, and an amount equal to 50% of the tax.
Any | ||||||
11 | county that enters into a tax revenue sharing
agreement must | ||||||
12 | complete and submit a report by electronic
filing to the | ||||||
13 | Department of Revenue within 7 days after the
execution of an | ||||||
14 | agreement. Any county that has entered into a
tax revenue | ||||||
15 | sharing agreement before the effective date of this
amendatory | ||||||
16 | Act of the 97th General Assembly that has not been
terminated | ||||||
17 | or expired as of the effective date of this
amendatory Act of | ||||||
18 | the 97th General Assembly, shall submit a
report with respect | ||||||
19 | to the agreements within 90 days after the
effective date of | ||||||
20 | this amendatory Act of the 97th General
Assembly. | ||||||
21 | (d) "Tax revenue sharing agreement" means, without 7 days | ||||||
22 | after the execution of any amendment made to a tax
limitation: | ||||||
23 | (1) any agreement between the county and any person,
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24 | business, or agent that provides for the sharing,
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25 | refunding, or rebating of any portion of any retailers'
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26 | occupation tax collected by the State; |
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1 | (2) any agreement between the county and an
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2 | intermediary or between an intermediary and a taxpayer for
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3 | the purpose of sharing, refunding, or rebating to any
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4 | taxpayer any portion of any retailers' occupation tax
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5 | collected by the State; or | ||||||
6 | (3) any amendment to a tax revenue sharing agreement,
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7 | including, but not limited to, a change in the terms of the
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8 | agreement or a change or addition of a taxpayer. | ||||||
9 | (e) The report described in this Section shall be made on a
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10 | form to be supplied by the Department of Revenue and shall
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11 | contain the following: | ||||||
12 | (1) the names of the county and the business entering
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13 | into the agreement; | ||||||
14 | (2) the location or locations of the business within
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15 | the county; | ||||||
16 | (3) the form shall also contain a statement, to be
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17 | answered in the affirmative or negative, as to whether or
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18 | not the company maintains additional places of business in
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19 | the State other than those described pursuant to paragraph
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20 | (2); | ||||||
21 | (4) the terms of the agreement, including (i) the
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22 | manner in which the amount of any retailers' occupation tax
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23 | is to be shared, rebated, or refunded is to be determined
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24 | each year for the duration of the tax revenue sharing
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25 | agreement, (ii) the duration of the tax revenue sharing
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26 | agreement, and (iii) the name of any business who is not a
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1 | party to the agreement but who directly or indirectly
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2 | receives a share, refund, or rebate of the retailers'
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3 | occupation tax; and | ||||||
4 | (5) a copy of the tax revenue sharing agreement. | ||||||
5 | An updated report must be filed by the county within 7 days
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6 | after the execution of any amendment made to a tax revenue
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7 | sharing agreement. | ||||||
8 | Reports filed with the Department pursuant to this Section | ||||||
9 | shall not constitute tax returns. But to the extent the | ||||||
10 | Department is allowed or required by law to release any report | ||||||
11 | or information provided to it by this Section, prior to any | ||||||
12 | such release the Department shall remove any sales or other | ||||||
13 | financial data provided that is identified with a specific | ||||||
14 | retailer or seller. | ||||||
15 | (f) On and after July 1, 2012
a home rule unit shall not | ||||||
16 | enter
into any tax revenue sharing agreement prohibited by | ||||||
17 | Subsection (c) of this
Section. This Section is a denial and | ||||||
18 | limitation of home rule
powers and functions under subsection | ||||||
19 | (g) of Section 6 of
Article VII of the Illinois Constitution. | ||||||
20 | (Source: P.A. 93-920, eff. 8-12-04.) | ||||||
21 | Section 10. The Illinois Municipal Code is amended by | ||||||
22 | changing Section 8-11-21 as follows:
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23 | (65 ILCS 5/8-11-21)
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24 | Sec. 8-11-21. Tax revenue sharing agreements Agreements to |
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1 | share or rebate occupation taxes .
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2 | (a) On and after
June 1, 2004, the corporate authorities of | ||||||
3 | a municipality shall
not enter into any agreement to share or | ||||||
4 | rebate
any
portion of retailers' occupation taxes generated by | ||||||
5 | retail sales of tangible
personal
property if: (1) the tax on | ||||||
6 | those retail sales, absent the agreement,
would have been paid | ||||||
7 | to another unit of local government; and (2) the
retailer | ||||||
8 | maintains, within that other unit of local government, a
retail | ||||||
9 | location from which the tangible personal property is delivered | ||||||
10 | to
purchasers, or a warehouse from which the tangible personal | ||||||
11 | property is
delivered to purchasers. Any unit of local | ||||||
12 | government
denied retailers' occupation tax revenue because of | ||||||
13 | an agreement that violates
this Section may file an action in | ||||||
14 | circuit court against only the municipality.
Any agreement | ||||||
15 | entered into prior to
June 1,
2004 is not affected by this | ||||||
16 | amendatory Act of the 93rd General Assembly.
Any unit of
local | ||||||
17 | government that prevails in the circuit court action is | ||||||
18 | entitled to
damages in
the amount of the tax revenue it was | ||||||
19 | denied as a result of the agreement,
statutory interest, costs, | ||||||
20 | reasonable attorney's fees, and an amount equal to
50% of the
| ||||||
21 | tax.
| ||||||
22 | (b) On and after the effective date of this amendatory Act | ||||||
23 | of the 93rd
General Assembly, a home rule unit shall not enter | ||||||
24 | into any agreement
prohibited
by this Section. This Section is | ||||||
25 | a denial and limitation of home rule powers
and
functions under | ||||||
26 | subsection (g) of Section 6 of Article VII of the Illinois
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1 | Constitution.
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2 | (c) On and after July 1, 2012, the corporate authorities of
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3 | a municipality shall not enter into any tax revenue sharing
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4 | agreement, as defined in subsection (d) of this Section,
if: | ||||||
5 | (1)
the tax on those retail sales, absent the agreement, would | ||||||
6 | have
been paid to another unit of local government; and (2) the
| ||||||
7 | retailer maintains, within that other unit of local government,
| ||||||
8 | a retail location from which the tangible personal property is
| ||||||
9 | delivered to purchasers, or a warehouse from which the tangible
| ||||||
10 | personal property is delivered to purchasers. Any unit of local
| ||||||
11 | government denied retailers' occupation tax revenue because of
| ||||||
12 | a tax revenue sharing agreement that violates this Section
may | ||||||
13 | file an action in circuit court against only the
municipality. | ||||||
14 | Any tax revenue sharing agreement entered into
prior to July 1, | ||||||
15 | 2012 is not affected by this amendatory Act of
the 97th General | ||||||
16 | Assembly. Any unit of local government that
prevails in the | ||||||
17 | circuit court action is entitled to damages in
the amount of | ||||||
18 | the tax revenue it was denied as a result of the
tax revenue | ||||||
19 | sharing agreement, statutory interest, costs,
reasonable | ||||||
20 | attorney's fees, and an amount equal to 50% of the
tax. | ||||||
21 | Any municipality that enters into a tax revenue sharing
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22 | agreement must complete and submit a report by electronic
| ||||||
23 | filing to the Department of Revenue within 7 days after the
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24 | execution of an agreement. Any municipality that has entered
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25 | into a tax revenue sharing agreement before the effective date
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26 | of this amendatory Act of the 97th General Assembly that has
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1 | not been terminated or expired as of the effective date of this
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2 | amendatory Act of the 97th General Assembly, shall submit a
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3 | report with respect to the agreements within 90 days after the
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4 | effective date of this amendatory Act of the 97th General
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5 | Assembly. | ||||||
6 | (d) "Tax revenue sharing agreement" means, without
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7 | limitation: | ||||||
8 | (1) any agreement between the municipality and any
| ||||||
9 | person, business, or agent that provides for the sharing,
| ||||||
10 | refunding, or rebating of any portion of any retailers'
| ||||||
11 | occupation tax collected by the State; | ||||||
12 | (2) any agreement between the municipality and an
| ||||||
13 | intermediary or between an intermediary and a taxpayer for
| ||||||
14 | the purpose of sharing, refunding, or rebating to any
| ||||||
15 | taxpayer any portion of any retailers' occupation tax
| ||||||
16 | collected by the State; or | ||||||
17 | (3) any amendment to a tax revenue sharing agreement,
| ||||||
18 | including, but not limited to, a change in the terms of the
| ||||||
19 | agreement or a change or addition of a taxpayer. | ||||||
20 | (e) The report described in this Section shall be made on a
| ||||||
21 | form to be supplied by the Department of Revenue and shall
| ||||||
22 | contain the following: | ||||||
23 | (1) the names of the municipality and the business
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24 | entering into the agreement; | ||||||
25 | (2) the location or locations of the business within
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26 | the municipality; |
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1 | (3) the form shall also contain a statement, to be
| ||||||
2 | answered in the affirmative or negative, as to whether or
| ||||||
3 | not the company maintains additional places of business in
| ||||||
4 | the State other than those described pursuant to paragraph
| ||||||
5 | (2); | ||||||
6 | (4) the terms of the agreement, including (i) the
| ||||||
7 | manner in which the amount of any retailers' occupation tax
| ||||||
8 | is to be shared, rebated, or refunded is to be determined
| ||||||
9 | each year for the duration of the tax revenue sharing
| ||||||
10 | agreement, (ii) the duration of the tax revenue sharing
| ||||||
11 | agreement, and (iii) the name of any business who is not a
| ||||||
12 | party to the agreement but who directly or indirectly
| ||||||
13 | receives a share, refund, or rebate of the retailers'
| ||||||
14 | occupation tax; and | ||||||
15 | (5) a copy of the tax revenue sharing agreement. | ||||||
16 | An updated report must be filed by the municipality within
| ||||||
17 | revenue sharing agreement. | ||||||
18 | Reports filed with the Department pursuant to this Section
| ||||||
19 | shall not constitute tax returns. But to the extent the | ||||||
20 | Department is allowed or required by law to release any report | ||||||
21 | or information provided to it by this Section, prior to any | ||||||
22 | such release the Department shall remove any sales or other | ||||||
23 | financial data provided that is identified with a specific | ||||||
24 | retailer or seller. | ||||||
25 | (f) On and after July 1, 2012
a home rule unit shall not | ||||||
26 | enter
into any tax revenue sharing agreement prohibited by |
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| |||||||
1 | Subsection (c) of this
Section. This Section is a denial and | ||||||
2 | limitation of home rule
powers and functions under subsection | ||||||
3 | (g) of Section 6 of
Article VII of the Illinois Constitution. | ||||||
4 | (Source: P.A. 93-920, eff. 8-12-04.) | ||||||
5 | Section 15. The State Mandates Act is amended by adding | ||||||
6 | Section 8.36 as follows: | ||||||
7 | (30 ILCS 805/8.36 new) | ||||||
8 | Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and | ||||||
9 | 8
of this Act, no reimbursement by the State is required for | ||||||
10 | the
implementation of any mandate created by this amendatory | ||||||
11 | Act of
the 97th General Assembly. ".
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