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| 1 | AN ACT concerning local government.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Counties Code is amended by adding Section | ||||||
| 5 | 5-1014.3 as
follows:
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| 6 | (55 ILCS 5/5-1014.3 new)
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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 | ||||||
| 17 | purchasers,
or a warehouse from which the tangible personal | ||||||
| 18 | property is delivered to
purchasers. Any unit of local | ||||||
| 19 | government denied
retailers' occupation tax revenue because of | ||||||
| 20 | an agreement that violates this
Section may file an action in | ||||||
| 21 | circuit court against only the county.
Any agreement entered | ||||||
| 22 | into prior to
June 1,
2004 is not affected by this amendatory | ||||||
| 23 | Act of the 93rd General Assembly.
Any unit of local
government | ||||||
| 24 | that prevails in the circuit court action is entitled to | ||||||
| 25 | damages against the county in
the amount of the tax revenue it | ||||||
| 26 | was denied as a result of the agreement,
statutory interest, | ||||||
| 27 | costs, reasonable attorney's fees, and an amount equal to
50% | ||||||
| 28 | of the tax.
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| 29 | (b) On and after the effective date of this amendatory Act | ||||||
| 30 | of the 93rd
General Assembly, a home rule unit shall not enter | ||||||
| 31 | into any agreement
prohibited
by this Section. This Section is | ||||||
| 32 | a denial and limitation of home rule powers
and
functions under | ||||||
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| 1 | subsection (g) of Section 6 of Article VII of the Illinois
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| 2 | Constitution.
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| 3 | Section 10. The Illinois Municipal Code is amended by | ||||||
| 4 | adding Section 8-11-21
as follows:
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| 5 | (65 ILCS 5/8-11-21 new)
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| 6 | Sec. 8-11-21. Agreements to share or rebate occupation | ||||||
| 7 | taxes.
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| 8 | (a) On and after
June 1, 2004, the corporate authorities of | ||||||
| 9 | a municipality shall
not enter into any agreement to share or | ||||||
| 10 | rebate
any
portion of retailers' occupation taxes generated by | ||||||
| 11 | retail sales of tangible
personal
property if: (1) the tax on | ||||||
| 12 | those retail sales, absent the agreement,
would have been paid | ||||||
| 13 | to another unit of local government; and (2) the
retailer | ||||||
| 14 | maintains, within that other unit of local government, a
retail | ||||||
| 15 | location from which the tangible personal property is delivered | ||||||
| 16 | to
purchasers, or a warehouse from which the tangible personal | ||||||
| 17 | property is
delivered to purchasers. Any unit of local | ||||||
| 18 | government
denied retailers' occupation tax revenue because of | ||||||
| 19 | an agreement that violates
this Section may file an action in | ||||||
| 20 | circuit court against only the municipality.
Any agreement | ||||||
| 21 | entered into prior to
June 1,
2004 is not affected by this | ||||||
| 22 | amendatory Act of the 93rd General Assembly.
Any unit of
local | ||||||
| 23 | government that prevails in the circuit court action is | ||||||
| 24 | entitled to
damages against the municipality in
the amount of | ||||||
| 25 | the tax revenue it was denied as a result of the agreement,
| ||||||
| 26 | statutory interest, costs, reasonable attorney's fees, and an | ||||||
| 27 | amount equal to
50% of the
tax.
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| 28 | (b) On and after the effective date of this amendatory Act | ||||||
| 29 | of the 93rd
General Assembly, a home rule unit shall not enter | ||||||
| 30 | into any agreement
prohibited
by this Section. This Section is | ||||||
| 31 | a denial and limitation of home rule powers
and
functions under | ||||||
| 32 | subsection (g) of Section 6 of Article VII of the Illinois
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| 33 | Constitution.
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| 1 | Section 99. Effective date. This Act takes effect upon | ||||||
| 2 | becoming law.
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