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 that  which  is
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
 
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 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.
 
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 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.
 
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 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.)