Full Text of HB2917 95th General Assembly
HB2917 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB2917
Introduced 2/26/2007, by Rep. Tom Cross SYNOPSIS AS INTRODUCED: |
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65 ILCS 5/8-11-1 |
from Ch. 24, par. 8-11-1 |
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Amends the Home Rule Municipal Retailers' Occupation Tax Act in the Illinois
Municipal Code. Makes a technical change in a Section authorizing the imposition of the tax.
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A BILL FOR
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HB2917 |
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LRB095 06284 HLH 26379 b |
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| AN ACT concerning local government.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Illinois Municipal Code is amended by | 5 |
| changing Section 8-11-1 as follows:
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| (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
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| Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax | 8 |
| Act. The
The
corporate authorities of a home rule municipality | 9 |
| may
impose a tax upon all persons engaged in the business of | 10 |
| selling tangible
personal property, other than an item of | 11 |
| tangible personal property titled
or registered with an agency | 12 |
| of this State's government, at retail in the
municipality on | 13 |
| the gross receipts from these sales made in
the course of such | 14 |
| business. If imposed, the tax shall only
be imposed in 1/4% | 15 |
| increments. On and after September 1, 1991, this
additional tax | 16 |
| may not be imposed on the sales of food for human
consumption | 17 |
| that is to be consumed off the premises where it
is sold (other | 18 |
| than alcoholic beverages, soft drinks and food that has
been | 19 |
| prepared for immediate consumption) and prescription and
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| nonprescription medicines, drugs, medical appliances and | 21 |
| insulin, urine
testing materials, syringes and needles used by | 22 |
| diabetics. The tax imposed
by a home rule municipality under | 23 |
| this Section and all
civil penalties that may be assessed as an |
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HB2917 |
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LRB095 06284 HLH 26379 b |
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| incident of the tax shall
be collected and enforced by the | 2 |
| State Department of
Revenue. The certificate of registration | 3 |
| that is issued by
the Department to a retailer under the | 4 |
| Retailers' Occupation Tax Act
shall permit the retailer to | 5 |
| engage in a business that is taxable
under any ordinance or | 6 |
| resolution enacted pursuant to
this Section without | 7 |
| registering separately with the Department under such
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| ordinance or resolution or under this Section. The Department | 9 |
| shall have
full power to administer and enforce this Section; | 10 |
| to collect all taxes and
penalties due hereunder; to dispose of | 11 |
| taxes and penalties so collected in
the manner hereinafter | 12 |
| provided; and to determine all rights to
credit memoranda | 13 |
| arising on account of the erroneous payment of tax or
penalty | 14 |
| hereunder. In the administration of, and compliance with, this
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| Section the Department and persons who are subject to this | 16 |
| Section shall
have the same rights, remedies, privileges, | 17 |
| immunities, powers and duties,
and be subject to the same | 18 |
| conditions, restrictions, limitations, penalties
and | 19 |
| definitions of terms, and employ the same modes of procedure, | 20 |
| as are
prescribed in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, | 21 |
| 1m, 1n, 2 through
2-65 (in
respect to all provisions therein | 22 |
| other than the State rate of tax), 2c, 3
(except as to the | 23 |
| disposition of taxes and penalties collected), 4, 5, 5a,
5b, | 24 |
| 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, | 25 |
| 10, 11,
12 and 13 of the Retailers' Occupation Tax Act and | 26 |
| Section 3-7 of the
Uniform Penalty and Interest Act, as fully |
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LRB095 06284 HLH 26379 b |
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| as if those provisions were
set forth herein. | 2 |
| No tax may be imposed by a home rule municipality under | 3 |
| this Section
unless the municipality also imposes a tax at the | 4 |
| same rate under Section
8-11-5 of this Act.
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| Persons subject to any tax imposed under the authority | 6 |
| granted in this
Section may reimburse themselves for their | 7 |
| seller's tax liability hereunder
by separately stating that tax | 8 |
| as an additional charge, which charge may be
stated in | 9 |
| combination, in a single amount, with State tax which sellers | 10 |
| are
required to collect under the Use Tax Act, pursuant to such | 11 |
| bracket
schedules as the Department may prescribe.
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| Whenever the Department determines that a refund should be | 13 |
| made under
this Section to a claimant instead of issuing a | 14 |
| credit memorandum, the
Department shall notify the State | 15 |
| Comptroller, who shall cause the
order to be drawn for the | 16 |
| amount specified and to the person named
in the notification | 17 |
| from the Department. The refund shall be paid by the
State | 18 |
| Treasurer out of the home rule municipal retailers' occupation | 19 |
| tax fund.
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| The Department shall immediately pay over to the State
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| Treasurer, ex officio, as trustee, all taxes and penalties | 22 |
| collected
hereunder. On or before the 25th day of each calendar | 23 |
| month, the
Department shall prepare and certify to the | 24 |
| Comptroller the disbursement of
stated sums of money to named | 25 |
| municipalities, the municipalities to be
those from which | 26 |
| retailers have paid taxes or penalties hereunder to the
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LRB095 06284 HLH 26379 b |
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| Department during the second preceding calendar month. The | 2 |
| amount to be
paid to each municipality shall be the amount (not | 3 |
| including credit
memoranda) collected hereunder during the | 4 |
| second preceding calendar month
by the Department plus an | 5 |
| amount the Department determines is necessary to
offset any | 6 |
| amounts that were erroneously paid to a different
taxing body, | 7 |
| and not including an amount equal to the amount of refunds
made | 8 |
| during the second preceding calendar month by the Department on
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| behalf of such municipality, and not including any amount that | 10 |
| the Department
determines is necessary to offset any amounts | 11 |
| that were payable to a
different taxing body but were | 12 |
| erroneously paid to the municipality. Within
10 days after | 13 |
| receipt by the Comptroller of the disbursement certification
to | 14 |
| the municipalities provided for in this Section to be given to | 15 |
| the
Comptroller by the Department, the Comptroller shall cause | 16 |
| the orders to be
drawn for the respective amounts in accordance | 17 |
| with the directions
contained in the certification.
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| In addition to the disbursement required by the preceding | 19 |
| paragraph and
in order to mitigate delays caused by | 20 |
| distribution procedures, an
allocation shall, if requested, be | 21 |
| made within 10 days after January 14,
1991, and in November of | 22 |
| 1991 and each year thereafter, to each
municipality that | 23 |
| received more than $500,000 during the preceding fiscal
year, | 24 |
| (July 1 through June 30) whether collected by the municipality | 25 |
| or
disbursed by the Department as required by this Section. | 26 |
| Within 10 days
after January 14, 1991, participating |
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| municipalities shall notify the
Department in writing of their | 2 |
| intent to participate. In addition, for the
initial | 3 |
| distribution, participating municipalities shall certify to | 4 |
| the
Department the amounts collected by the municipality for | 5 |
| each month under
its home rule occupation and service | 6 |
| occupation tax during the period July
1, 1989 through June 30, | 7 |
| 1990. The allocation within 10 days after January
14, 1991, | 8 |
| shall be in an amount equal to the monthly average of these
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| amounts, excluding the 2 months of highest receipts. The | 10 |
| monthly average
for the period of July 1, 1990 through June 30, | 11 |
| 1991 will be determined as
follows: the amounts collected by | 12 |
| the municipality under its home rule
occupation and service | 13 |
| occupation tax during the period of July 1, 1990
through | 14 |
| September 30, 1990, plus amounts collected by the Department | 15 |
| and
paid to such municipality through June 30, 1991, excluding | 16 |
| the 2 months of
highest receipts. The monthly average for each | 17 |
| subsequent period of July 1
through June 30 shall be an amount | 18 |
| equal to the monthly distribution made
to each such | 19 |
| municipality under the preceding paragraph during this period,
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| excluding the 2 months of highest receipts. The distribution | 21 |
| made in
November 1991 and each year thereafter under this | 22 |
| paragraph and the
preceding paragraph shall be reduced by the | 23 |
| amount allocated and disbursed
under this paragraph in the | 24 |
| preceding period of July 1 through June 30.
The Department | 25 |
| shall prepare and certify to the Comptroller for
disbursement | 26 |
| the allocations made in accordance with this paragraph.
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LRB095 06284 HLH 26379 b |
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| For the purpose of determining the local governmental unit | 2 |
| whose tax
is applicable, a retail sale by a producer of coal or | 3 |
| other mineral
mined in Illinois is a sale at retail at the | 4 |
| place where the coal or
other mineral mined in Illinois is | 5 |
| extracted from the earth. This
paragraph does not apply to coal | 6 |
| or other mineral when it is delivered
or shipped by the seller | 7 |
| to the purchaser at a point outside Illinois so
that the sale | 8 |
| is exempt under the United States Constitution as a sale in
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| interstate or foreign commerce.
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| Nothing in this Section shall be construed to authorize a
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| municipality to impose a tax upon the privilege of engaging in | 12 |
| any
business which under the Constitution of the United States | 13 |
| may not be
made the subject of taxation by this State.
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| An ordinance or resolution imposing or discontinuing a tax | 15 |
| hereunder or
effecting a change in the rate thereof shall be | 16 |
| adopted and a certified
copy thereof filed with the Department | 17 |
| on or before the first day of June,
whereupon the Department | 18 |
| shall proceed to administer and enforce this
Section as of the | 19 |
| first day of September next following the
adoption and filing. | 20 |
| Beginning January 1, 1992, an ordinance or resolution
imposing | 21 |
| or discontinuing the tax hereunder or effecting a change in the
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| rate thereof shall be adopted and a certified copy thereof | 23 |
| filed with the
Department on or before the first day of July, | 24 |
| whereupon the Department
shall proceed to administer and | 25 |
| enforce this Section as of the first day of
October next | 26 |
| following such adoption and filing. Beginning January 1, 1993,
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| an ordinance or resolution imposing or discontinuing the tax | 2 |
| hereunder or
effecting a change in the rate thereof shall be | 3 |
| adopted and a certified
copy thereof filed with the Department | 4 |
| on or before the first day of
October, whereupon the Department | 5 |
| shall proceed to administer and enforce
this Section as of the | 6 |
| first day of January next following the
adoption and filing.
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| However, a municipality located in a county with a population | 8 |
| in excess of
3,000,000 that elected to become a home rule unit | 9 |
| at the general primary
election in
1994 may adopt an ordinance | 10 |
| or resolution imposing the tax under this Section
and file a | 11 |
| certified copy of the ordinance or resolution with the | 12 |
| Department on
or before July 1, 1994. The Department shall then | 13 |
| proceed to administer and
enforce this Section as of October 1, | 14 |
| 1994.
Beginning April 1, 1998, an ordinance or
resolution | 15 |
| imposing or
discontinuing the tax hereunder or effecting a | 16 |
| change in the rate thereof shall
either (i) be adopted and a | 17 |
| certified copy thereof filed with the Department on
or
before | 18 |
| the first day of April, whereupon the Department shall proceed | 19 |
| to
administer and enforce this Section as of the first day of | 20 |
| July next following
the adoption and filing; or (ii) be adopted | 21 |
| and a certified copy thereof filed
with the Department on or | 22 |
| before the first day of October, whereupon the
Department shall | 23 |
| proceed to administer and enforce this Section as of the first
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| day of January next following the adoption and filing.
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| When certifying the amount of a monthly disbursement to a | 26 |
| municipality
under this Section, the Department shall increase |
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| or decrease the amount by
an amount necessary to offset any | 2 |
| misallocation of previous disbursements.
The offset amount | 3 |
| shall be the amount erroneously disbursed
within the previous 6 | 4 |
| months from the time a misallocation is discovered.
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| Any unobligated balance remaining in the Municipal | 6 |
| Retailers' Occupation
Tax Fund on December 31, 1989, which fund | 7 |
| was abolished by Public Act
85-1135, and all receipts of | 8 |
| municipal tax as a result of audits of
liability periods prior | 9 |
| to January 1, 1990, shall be paid into the Local
Government Tax | 10 |
| Fund for distribution as provided by this Section prior to
the | 11 |
| enactment of Public Act 85-1135. All receipts of municipal tax | 12 |
| as a
result of an assessment not arising from an audit, for | 13 |
| liability periods
prior to January 1, 1990, shall be paid into | 14 |
| the Local Government Tax Fund
for distribution before July 1, | 15 |
| 1990, as provided by this Section prior to
the enactment of | 16 |
| Public Act 85-1135; and on and after July 1,
1990, all such | 17 |
| receipts shall be distributed as provided in Section
6z-18 of | 18 |
| the State Finance Act.
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| As used in this Section, "municipal" and "municipality" | 20 |
| means a city,
village or incorporated town, including an | 21 |
| incorporated town that has
superseded a civil township.
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| This Section shall be known and may be cited as the Home | 23 |
| Rule Municipal
Retailers' Occupation Tax Act.
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| (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
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