102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB1843

 

Introduced 2/26/2021, by Sen. Mattie Hunter

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/5.935 new
65 ILCS 5/11-42-1.5 new

    Amends the Illinois Municipal Code. Provides that, in addition to any other tax that may be imposed, a municipality may also impose, by ordinance, a tax upon all persons engaged in the municipality in the business of acting as a resale facilitator. Provides that the tax may be imposed, in one cent increments, at a rate not to exceed $0.05 of the selling price of all tickets or other licenses resold by or through the resale facilitator for amusements taking place within the municipality. Provides that the tax does not apply to: (i) the original sale of a ticket or license by the owner, operator, or manager of an amusement, either directly or through a third party; or (ii) resales by or to ticket brokers registered with the Secretary of State under the Ticket Sale and Resale Act. Defines terms. Amends the State Finance Act to create the Municipal Ticket and License Reselling Tax Fund.


LRB102 10597 AWJ 15926 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1843LRB102 10597 AWJ 15926 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Section 5.935 as follows:
 
6    (30 ILCS 105/5.935 new)
7    Sec. 5.935. The Municipal Ticket and License Reselling Tax
8Fund.
 
9    Section 10. The Illinois Municipal Code is amended by
10adding Section 11-42-1.5 as follows:
 
11    (65 ILCS 5/11-42-1.5 new)
12    Sec. 11-42-1.5. Municipal Ticket and License Reselling Tax
13Law. This Section shall be known and may be cited as the
14Municipal Ticket and License Reselling Tax Law.
15    (a) As used in this Section:
16    "License" means a ticket or other license granting the
17privilege to enter, to witness, to view, or to participate in
18an amusement or the opportunity to obtain the privilege to
19enter, to witness, to view, or to participate in an amusement.
20"License" includes, but is not limited to, a permanent seat
21license.

 

 

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1    "Resale" means the resale of a ticket or other license to
2an amusement after the ticket or other license has been sold by
3the owner, manager, or operator of the amusement, or by the
4owner, manager, or operator of the place where the amusement
5is being held, to an independent and unrelated third party.
6    "Resale facilitator" means a person engaged in the
7business of resale on behalf of the owner of the ticket or
8other license or assisting the owner in resale of the owner's
9ticket or other license, whether or not the ticket or other
10license is resold by bidding, consignment, or otherwise and
11whether or not the ticket or other license is resold in person,
12at a site on the Internet, or otherwise. "Resale facilitator"
13includes, but is not limited to, an auctioneer, a ticket
14broker, a seller of tickets or other licenses for amusements,
15or an Internet auction listing service. "Resale facilitator"
16does not include a person who advertises the availability of a
17ticket or other license for resale without participating in
18the resale transaction.
19    "Reseller" means a person who resells a ticket or other
20license to an amusement for consideration, whether or not the
21ticket or other license is resold by bidding, consignment, or
22otherwise and whether or not the ticket or other license is
23resold in person, at a site on the Internet, or otherwise.
24"Reseller" includes, but is not limited to, ticket brokers.
25    "Selling price" means the total consideration received
26from the consumer and collected by the reseller or resale

 

 

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1facilitator for the purchase of a ticket or license, including
2any service fees or other charges. "Selling price" includes
3any local amusement tax on the original sale of the ticket or
4license that is included in the consideration received, but
5excludes any federal, State, or local taxes imposed on such
6resale and any separately stated and optional charges for
7services or property.
8    "Ticket" means the privilege to enter, witness, view, or
9participate in an amusement, whether or not expressed in a
10tangible form.
11    (b) Notwithstanding any other provision of law, in
12addition to any other tax that may be imposed, a municipality
13may also impose, by ordinance, a tax upon all persons engaged
14in the municipality in the business of acting as a resale
15facilitator. The tax may be imposed, in one cent increments,
16at a rate not to exceed $0.05 of the selling price of all
17tickets or other licenses resold by or through the resale
18facilitator for amusements taking place within the
19municipality. The tax may not be imposed under this Section
20on: (i) the original sale of a ticket or license by the owner,
21operator, or manager of an amusement, either directly or
22through a third party; or (ii) resales to ticket brokers or
23resales by ticket brokers to ticket brokers, when registered
24with the Secretary of State under the Ticket Sale and Resale
25Act.
26    Persons subject to any tax imposed under the authority

 

 

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1granted in this Section may reimburse themselves for their
2seller's tax liability hereunder by separately stating that
3tax as an additional charge, which charge may be stated in
4combination, in a single amount, with State tax which sellers
5are required to collect under the Use Tax Act, pursuant to such
6bracket schedules as the Department of Revenue may prescribe.
7    A tax imposed pursuant to this Section, and all civil
8penalties that may be assessed as an incident thereof, shall
9be administered, collected, and enforced by the Department of
10Revenue in the same manner as the tax imposed under the
11Retailers' Occupation Tax Act, as now or hereafter amended,
12insofar as may be practicable; except that in the event of a
13conflict with the provisions of this Section, this Section
14shall control. The Department of Revenue shall have full power
15to: administer and enforce this Section; collect all taxes and
16penalties due hereunder; dispose of taxes and penalties so
17collected in the manner hereinafter provided; and determine
18all rights to credit memoranda arising on account of the
19erroneous payment of tax or penalty hereunder.
20    Whenever the Department of Revenue determines that a
21refund shall be made under this Section to a claimant instead
22of issuing a credit memorandum, the Department of Revenue
23shall notify the State Comptroller, who shall cause the order
24to be drawn for the amount specified, and to the person named,
25in the notification from the Department of Revenue. The refund
26shall be paid by the State Treasurer out of the Municipal

 

 

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1Ticket and License Reselling Tax Fund.
2    The Department of Revenue shall immediately pay over to
3the State Treasurer, ex officio, as trustee, all taxes and
4penalties collected under this Section. Those taxes and
5penalties shall be deposited into the Municipal Ticket and
6License Reselling Tax Fund, a trust fund created in the State
7treasury. Moneys in the Municipal Ticket and License Reselling
8Tax Fund shall be used to make payments to municipalities and
9for the payment of refunds under this Section.
10    On or before the 25th day of each calendar month, the
11Department of Revenue shall prepare and certify to the State
12Comptroller the disbursement of stated sums of money to named
13municipalities for which taxpayers have paid taxes or
14penalties hereunder to the Department of Revenue during the
15second preceding calendar month. The amount to be paid to each
16municipality shall be the amount (not including credit
17memoranda) collected under this Section from resellers within
18the municipality during the second preceding calendar month by
19the Department of Revenue, plus an amount the Department of
20Revenue determines is necessary to offset amounts that were
21erroneously paid to a different municipality, and not
22including an amount equal to the amount of refunds made during
23the second preceding calendar month by the Department of
24Revenue on behalf of the municipality, and not including any
25amount that the Department of Revenue determines is necessary
26to offset any amounts that were payable to a different

 

 

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1municipality but were erroneously paid to the municipality,
2less 1.5% of the remainder, which the Comptroller shall
3transfer into the Tax Compliance and Administration Fund. The
4Department of Revenue, at the time of each monthly
5disbursement, shall prepare and certify to the State
6Comptroller the amount to be transferred into the Tax
7Compliance and Administration Fund under this Section. Within
810 days after receipt by the Comptroller of the disbursement
9certification to the municipalities and the Tax Compliance and
10Administration Fund provided for in this Section to be given
11to the Comptroller by the Department of Revenue, the
12Comptroller shall cause the orders to be drawn for the
13respective amounts in accordance with the directions contained
14in the certification.
15    Nothing in this Section shall be construed to authorize a
16municipality to impose a tax upon the privilege of engaging in
17any business which under the Constitution of the United States
18may not be made the subject of taxation by this State.
19    An ordinance or resolution imposing or discontinuing the
20tax under this Section or effecting a change in the rate
21thereof shall either: (i) be adopted and a certified copy
22thereof filed with the Department of Revenue on or before the
23first day of April, whereupon the Department of Revenue shall
24proceed to administer and enforce this Section as of the first
25day of July next following the adoption and filing; or (ii) be
26adopted and a certified copy thereof filed with the Department

 

 

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1of Revenue on or before the first day of October, whereupon the
2Department of Revenue shall proceed to administer and enforce
3this Section as of the first day of January next following the
4adoption and filing.