103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1514

 

Introduced 1/31/2023, by Rep. Tony M. McCombie

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 105/6z-18  from Ch. 127, par. 142z-18
30 ILCS 105/6z-20  from Ch. 127, par. 142z-20

    Amends the State Finance Act. Provides that moneys in the Local Government Tax Fund and the County and Mass Transit District Fund from the tax imposed under the Retailers' Occupation Tax Act, the Service Occupation Tax Act, the Service Use Tax Act, or the Use Tax Act on a motor vehicle that is titled or registered in the State shall be distributed to the municipality where the motor vehicle is titled or registered or, if the motor vehicle is titled or registered in an unincorporated area of the county, to the county where the motor vehicle is titled or registered. Provides that, if the Illinois address for the motor vehicle for titling or registration purposes is given as being in a county with more than 3,000,000 inhabitants, then the money from the County and Mass Transit District Fund shall be distributed into the Regional Transportation Authority tax fund.


LRB103 25686 HLH 52035 b

 

 

A BILL FOR

 

HB1514LRB103 25686 HLH 52035 b

1    AN ACT concerning revenue.
 
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 changing
5Sections 6z-18 and 6z-20 as follows:
 
6    (30 ILCS 105/6z-18)  (from Ch. 127, par. 142z-18)
7    Sec. 6z-18. Local Government Tax Fund. A portion of the
8money paid into the Local Government Tax Fund from sales of
9tangible personal property taxed at the 1% rate under the
10Retailers' Occupation Tax Act and the Service Occupation Tax
11Act, which occurred in municipalities, shall be distributed to
12each municipality based upon the sales which occurred in that
13municipality. The remainder shall be distributed to each
14county based upon the sales which occurred in the
15unincorporated area of that county.
16    Moneys transferred from the Grocery Tax Replacement Fund
17to the Local Government Tax Fund under Section 6z-130 shall be
18treated under this Section in the same manner as if they had
19been remitted with the return on which they were reported.
20    A portion of the money paid into the Local Government Tax
21Fund from the 6.25% general use tax rate on the selling price
22of tangible personal property which is purchased outside
23Illinois at retail from a retailer and which is titled or

 

 

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1registered by any agency of this State's government shall be
2distributed to municipalities as provided in this paragraph.
3Each municipality shall receive the amount attributable to
4sales for which Illinois addresses for titling or registration
5purposes are given as being in such municipality. The
6remainder of the money paid into the Local Government Tax Fund
7from such sales shall be distributed to counties. Each county
8shall receive the amount attributable to sales for which
9Illinois addresses for titling or registration purposes are
10given as being located in the unincorporated area of such
11county.
12    Notwithstanding any other provision of law, moneys paid
13into the Local Government Tax Fund on or after July 1, 2024
14from the 6.25% general rate under the Retailers' Occupation
15Tax Act, the Service Occupation Tax Act, the Service Use Tax
16Act, or the Use Tax Act imposed on the selling price of a motor
17vehicle that is titled or registered in this State shall be
18distributed to municipalities and counties as follows:
19        (1) a municipality shall receive the amount
20    attributable to the sale or use of a motor vehicle if the
21    Illinois address given for that motor vehicle for titling
22    or registration purposes is in that municipality; and
23        (2) a county shall receive the amount attributable to
24    the sale or use of a motor vehicle if the Illinois address
25    given for that motor vehicle for titling or registration
26    purposes is in the unincorporated area of that county.

 

 

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1    A portion of the money paid into the Local Government Tax
2Fund from the 6.25% general rate (and, beginning July 1, 2000
3and through December 31, 2000, the 1.25% rate on motor fuel and
4gasohol, and beginning on August 6, 2010 through August 15,
52010, and beginning again on August 5, 2022 through August 14,
62022, the 1.25% rate on sales tax holiday items) on sales
7subject to taxation under the Retailers' Occupation Tax Act
8and the Service Occupation Tax Act, which occurred in
9municipalities, shall be distributed to each municipality,
10based upon the sales which occurred in that municipality. The
11remainder shall be distributed to each county, based upon the
12sales which occurred in the unincorporated area of such
13county.
14    For the purpose of determining allocation to the local
15government unit, a retail sale by a producer of coal or other
16mineral mined in Illinois is a sale at retail at the place
17where the coal or other mineral mined in Illinois is extracted
18from the earth. This paragraph does not apply to coal or other
19mineral when it is delivered or shipped by the seller to the
20purchaser at a point outside Illinois so that the sale is
21exempt under the United States Constitution as a sale in
22interstate or foreign commerce.
23    Whenever the Department determines that a refund of money
24paid into the Local Government Tax Fund should be made to a
25claimant instead of issuing a credit memorandum, the
26Department shall notify the State Comptroller, who shall cause

 

 

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1the order to be drawn for the amount specified, and to the
2person named, in such notification from the Department. Such
3refund shall be paid by the State Treasurer out of the Local
4Government Tax Fund.
5    As soon as possible after the first day of each month,
6beginning January 1, 2011, upon certification of the
7Department of Revenue, the Comptroller shall order
8transferred, and the Treasurer shall transfer, to the STAR
9Bonds Revenue Fund the local sales tax increment, as defined
10in the Innovation Development and Economy Act, collected
11during the second preceding calendar month for sales within a
12STAR bond district and deposited into the Local Government Tax
13Fund, less 3% of that amount, which shall be transferred into
14the Tax Compliance and Administration Fund and shall be used
15by the Department, subject to appropriation, to cover the
16costs of the Department in administering the Innovation
17Development and Economy Act.
18    After the monthly transfer to the STAR Bonds Revenue Fund,
19on or before the 25th day of each calendar month, the
20Department shall prepare and certify to the Comptroller the
21disbursement of stated sums of money to named municipalities
22and counties, the municipalities and counties to be those
23entitled to distribution of taxes or penalties paid to the
24Department during the second preceding calendar month. The
25amount to be paid to each municipality or county shall be the
26amount (not including credit memoranda) collected during the

 

 

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1second preceding calendar month by the Department and paid
2into the Local Government Tax Fund, plus an amount the
3Department determines is necessary to offset any amounts which
4were erroneously paid to a different taxing body, and not
5including an amount equal to the amount of refunds made during
6the second preceding calendar month by the Department, and not
7including any amount which the Department determines is
8necessary to offset any amounts which are payable to a
9different taxing body but were erroneously paid to the
10municipality or county, and not including any amounts that are
11transferred to the STAR Bonds Revenue Fund. Within 10 days
12after receipt, by the Comptroller, of the disbursement
13certification to the municipalities and counties, provided for
14in this Section to be given to the Comptroller by the
15Department, the Comptroller shall cause the orders to be drawn
16for the respective amounts in accordance with the directions
17contained in such certification.
18    When certifying the amount of monthly disbursement to a
19municipality or county under this Section, the Department
20shall increase or decrease that amount by an amount necessary
21to offset any misallocation of previous disbursements. The
22offset amount shall be the amount erroneously disbursed within
23the 6 months preceding the time a misallocation is discovered.
24    The provisions directing the distributions from the
25special fund in the State treasury Treasury provided for in
26this Section shall constitute an irrevocable and continuing

 

 

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1appropriation of all amounts as provided herein. The State
2Treasurer and State Comptroller are hereby authorized to make
3distributions as provided in this Section.
4    In construing any development, redevelopment, annexation,
5preannexation, or other lawful agreement in effect prior to
6September 1, 1990, which describes or refers to receipts from
7a county or municipal retailers' occupation tax, use tax or
8service occupation tax which now cannot be imposed, such
9description or reference shall be deemed to include the
10replacement revenue for such abolished taxes, distributed from
11the Local Government Tax Fund.
12    As soon as possible after March 8, 2013 (the effective
13date of Public Act 98-3) this amendatory Act of the 98th
14General Assembly, the State Comptroller shall order and the
15State Treasurer shall transfer $6,600,000 from the Local
16Government Tax Fund to the Illinois State Medical Disciplinary
17Fund.
18(Source: P.A. 102-700, Article 60, Section 60-10, eff.
194-19-22; 102-700, Article 65, Section 65-15, eff. 4-19-22;
20revised 6-2-22.)
 
21    (30 ILCS 105/6z-20)  (from Ch. 127, par. 142z-20)
22    Sec. 6z-20. County and Mass Transit District Fund. Of the
23money received from the 6.25% general rate (and, beginning
24July 1, 2000 and through December 31, 2000, the 1.25% rate on
25motor fuel and gasohol, and beginning on August 6, 2010

 

 

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1through August 15, 2010, and beginning again on August 5, 2022
2through August 14, 2022, the 1.25% rate on sales tax holiday
3items) on sales subject to taxation under the Retailers'
4Occupation Tax Act and Service Occupation Tax Act and paid
5into the County and Mass Transit District Fund, distribution
6to the Regional Transportation Authority tax fund, created
7pursuant to Section 4.03 of the Regional Transportation
8Authority Act, for deposit therein shall be made based upon
9the retail sales occurring in a county having more than
103,000,000 inhabitants. The remainder shall be distributed to
11each county having 3,000,000 or fewer inhabitants based upon
12the retail sales occurring in each such county.
13    For the purpose of determining allocation to the local
14government unit, a retail sale by a producer of coal or other
15mineral mined in Illinois is a sale at retail at the place
16where the coal or other mineral mined in Illinois is extracted
17from the earth. This paragraph does not apply to coal or other
18mineral when it is delivered or shipped by the seller to the
19purchaser at a point outside Illinois so that the sale is
20exempt under the United States Constitution as a sale in
21interstate or foreign commerce.
22    Of the money received from the 6.25% general use tax rate
23on tangible personal property which is purchased outside
24Illinois at retail from a retailer and which is titled or
25registered by any agency of this State's government and paid
26into the County and Mass Transit District Fund, the amount for

 

 

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1which Illinois addresses for titling or registration purposes
2are given as being in each county having more than 3,000,000
3inhabitants shall be distributed into the Regional
4Transportation Authority tax fund, created pursuant to Section
54.03 of the Regional Transportation Authority Act. The
6remainder of the money paid from such sales shall be
7distributed to each county based on sales for which Illinois
8addresses for titling or registration purposes are given as
9being located in the county. Any money paid into the Regional
10Transportation Authority Occupation and Use Tax Replacement
11Fund from the County and Mass Transit District Fund prior to
12January 14, 1991, which has not been paid to the Authority
13prior to that date, shall be transferred to the Regional
14Transportation Authority tax fund.
15    Notwithstanding any other provision of law, moneys paid
16into the County and Mass Transit District Fund on or after July
171, 2024 from the 6.25% general rate under the Retailers'
18Occupation Tax Act, the Service Occupation Tax Act, the
19Service Use Tax Act, or the Use Tax Act that is imposed on the
20selling price of a motor vehicle that is titled or registered
21in this State shall be distributed to municipalities and
22counties as follows:
23        (1) if the Illinois address for the motor vehicle for
24    titling or registration purposes is given as being in a
25    county with more than 3,000,000 inhabitants, then the
26    money shall be distributed into the Regional

 

 

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1    Transportation Authority tax fund created under Section
2    4.03 of the Regional Transportation Authority Act;
3        (2) if the Illinois address for the motor vehicle for
4    titling or registration purposes is given as being in a
5    county with 3,000,000 inhabitants or less, then the
6    municipality shall receive the amount attributable to the
7    sale or use of the motor vehicle if the Illinois address
8    given for that motor vehicle for titling or registration
9    purposes is in that municipality; and
10        (3) if the Illinois address for the motor vehicle for
11    titling or registration purposes is given as being in a
12    county with 3,000,000 inhabitants or less, then the county
13    shall receive the amount attributable to the sale or use
14    of a motor vehicle if the Illinois address given for that
15    motor vehicle for titling or registration purposes is in
16    the unincorporated area of that county.
17    Whenever the Department determines that a refund of money
18paid into the County and Mass Transit District Fund should be
19made to a claimant instead of issuing a credit memorandum, the
20Department shall notify the State Comptroller, who shall cause
21the order to be drawn for the amount specified, and to the
22person named, in such notification from the Department. Such
23refund shall be paid by the State Treasurer out of the County
24and Mass Transit District Fund.
25    As soon as possible after the first day of each month,
26beginning January 1, 2011, upon certification of the

 

 

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1Department of Revenue, the Comptroller shall order
2transferred, and the Treasurer shall transfer, to the STAR
3Bonds Revenue Fund the local sales tax increment, as defined
4in the Innovation Development and Economy Act, collected
5during the second preceding calendar month for sales within a
6STAR bond district and deposited into the County and Mass
7Transit District Fund, less 3% of that amount, which shall be
8transferred into the Tax Compliance and Administration Fund
9and shall be used by the Department, subject to appropriation,
10to cover the costs of the Department in administering the
11Innovation Development and Economy Act.
12    After the monthly transfer to the STAR Bonds Revenue Fund,
13on or before the 25th day of each calendar month, the
14Department shall prepare and certify to the Comptroller the
15disbursement of stated sums of money to the Regional
16Transportation Authority and to named counties, the counties
17to be those entitled to distribution, as hereinabove provided,
18of taxes or penalties paid to the Department during the second
19preceding calendar month. The amount to be paid to the
20Regional Transportation Authority and each county having
213,000,000 or fewer inhabitants shall be the amount (not
22including credit memoranda) collected during the second
23preceding calendar month by the Department and paid into the
24County and Mass Transit District Fund, plus an amount the
25Department determines is necessary to offset any amounts which
26were erroneously paid to a different taxing body, and not

 

 

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1including an amount equal to the amount of refunds made during
2the second preceding calendar month by the Department, and not
3including any amount which the Department determines is
4necessary to offset any amounts which were payable to a
5different taxing body but were erroneously paid to the
6Regional Transportation Authority or county, and not including
7any amounts that are transferred to the STAR Bonds Revenue
8Fund, less 1.5% of the amount to be paid to the Regional
9Transportation Authority, which shall be transferred into the
10Tax Compliance and Administration Fund. The Department, at the
11time of each monthly disbursement to the Regional
12Transportation Authority, shall prepare and certify to the
13State Comptroller the amount to be transferred into the Tax
14Compliance and Administration Fund under this Section. Within
1510 days after receipt, by the Comptroller, of the disbursement
16certification to the Regional Transportation Authority,
17counties, and the Tax Compliance and Administration Fund
18provided for in this Section to be given to the Comptroller by
19the Department, the Comptroller shall cause the orders to be
20drawn for the respective amounts in accordance with the
21directions contained in such certification.
22    When certifying the amount of a monthly disbursement to
23the Regional Transportation Authority or to a county under
24this Section, the Department shall increase or decrease that
25amount by an amount necessary to offset any misallocation of
26previous disbursements. The offset amount shall be the amount

 

 

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1erroneously disbursed within the 6 months preceding the time a
2misallocation is discovered.
3    The provisions directing the distributions from the
4special fund in the State Treasury provided for in this
5Section and from the Regional Transportation Authority tax
6fund created by Section 4.03 of the Regional Transportation
7Authority Act shall constitute an irrevocable and continuing
8appropriation of all amounts as provided herein. The State
9Treasurer and State Comptroller are hereby authorized to make
10distributions as provided in this Section.
11    In construing any development, redevelopment, annexation,
12preannexation or other lawful agreement in effect prior to
13September 1, 1990, which describes or refers to receipts from
14a county or municipal retailers' occupation tax, use tax or
15service occupation tax which now cannot be imposed, such
16description or reference shall be deemed to include the
17replacement revenue for such abolished taxes, distributed from
18the County and Mass Transit District Fund or Local Government
19Distributive Fund, as the case may be.
20(Source: P.A. 102-700, eff. 4-19-22.)