Full Text of HB3859 97th General Assembly
HB3859ham004 97TH GENERAL ASSEMBLY | Rep. Lisa M. Dugan Filed: 3/26/2012
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| 1 | | AMENDMENT TO HOUSE BILL 3859
| 2 | | AMENDMENT NO. ______. Amend House Bill 3859 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Counties Code is amended by changing | 5 | | Section 5-1014.3 as follows:
| 6 | | (55 ILCS 5/5-1014.3)
| 7 | | Sec. 5-1014.3. Agreements to share or rebate occupation | 8 | | taxes.
| 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
| 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 |
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| 1 | | purchasers,
or a warehouse from which the tangible personal | 2 | | property is delivered to
purchasers. Any unit of local | 3 | | government denied
retailers' occupation tax revenue because of | 4 | | an agreement that violates this
Section may file an action in | 5 | | circuit court against only the county.
Any agreement entered | 6 | | into prior to
June 1,
2004 is not affected by this amendatory | 7 | | Act of the 93rd General Assembly.
Any unit of local
government | 8 | | that prevails in the circuit court action is entitled to | 9 | | damages in
the amount of the tax revenue it was denied as a | 10 | | result of the agreement,
statutory interest, costs, reasonable | 11 | | attorney's fees, and an amount equal to
50% of the tax.
| 12 | | (b) On and after the effective date of this amendatory Act | 13 | | of the 93rd
General Assembly, a home rule unit shall not enter | 14 | | into any agreement
prohibited
by subsection (a) of this | 15 | | Section. This Section is a denial and limitation of home rule | 16 | | powers
and
functions under subsection (g) of Section 6 of | 17 | | Article VII of the Illinois
Constitution.
| 18 | | (c) On and after July 1, 2012, a county board shall not
| 19 | | enter into any tax revenue sharing agreement, as defined in
| 20 | | subsection (d) of this Section, if: (1) the tax on those retail
| 21 | | sales, absent the agreement, would have been paid to another
| 22 | | unit of local government; and (2) the retailer maintains,
| 23 | | within that other unit of local government, a retail location
| 24 | | from which the tangible personal property is delivered to
| 25 | | purchasers, or a warehouse from which the tangible personal
| 26 | | property is delivered to purchasers. Any unit of local
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| 1 | | government denied retailers' occupation tax revenue because of
| 2 | | a tax revenue sharing agreement that violates this Section
may | 3 | | file an action in circuit court against only the county.
Any | 4 | | tax revenue sharing agreement entered into prior to July 1,
| 5 | | 2012 is not affected by this amendatory Act of the 97th General
| 6 | | Assembly. Any unit of local government that prevails in the
| 7 | | circuit court action is entitled to damages in the amount of
| 8 | | the tax revenue it was denied as a result of the tax revenue
| 9 | | sharing agreement, statutory interest, costs, reasonable
| 10 | | attorney's fees, and an amount equal to 50% of the tax.
Any | 11 | | county that enters into a tax revenue sharing
agreement must | 12 | | complete and submit a report by electronic
filing to the | 13 | | Department of Revenue within 7 days after the
execution of an | 14 | | agreement. Any county that has entered into a
tax revenue | 15 | | sharing agreement before the effective date of this
amendatory | 16 | | Act of the 97th General Assembly that has not been
terminated | 17 | | or expired as of the effective date of this
amendatory Act of | 18 | | the 97th General Assembly, shall submit a
report with respect | 19 | | to the agreements within 90 days after the
effective date of | 20 | | this amendatory Act of the 97th General
Assembly. | 21 | | (d) "Tax revenue sharing agreement" means, without 7 days | 22 | | after the execution of any amendment made to a tax
limitation: | 23 | | (1) any agreement between the county and any person,
| 24 | | business, or agent that provides for the sharing,
| 25 | | refunding, or rebating of any portion of any retailers'
| 26 | | occupation tax collected by the State; |
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| 1 | | (2) any agreement between the county and an
| 2 | | intermediary or between an intermediary and a taxpayer for
| 3 | | the purpose of sharing, refunding, or rebating to any
| 4 | | taxpayer any portion of any retailers' occupation tax
| 5 | | collected by the State; or | 6 | | (3) any amendment to a tax revenue sharing agreement,
| 7 | | including, but not limited to, a change in the terms of the
| 8 | | agreement or a change or addition of a taxpayer. | 9 | | (e) The report described in this Section shall be made on a
| 10 | | form to be supplied by the Department of Revenue and shall
| 11 | | contain the following: | 12 | | (1) the names of the county and the business entering
| 13 | | into the agreement; | 14 | | (2) the location or locations of the business within
| 15 | | the county; | 16 | | (3) the form shall also contain a statement, to be
| 17 | | answered in the affirmative or negative, as to whether or
| 18 | | not the company maintains additional places of business in
| 19 | | the State other than those described pursuant to paragraph
| 20 | | (2); | 21 | | (4) the terms of the agreement, including (i) the
| 22 | | manner in which the amount of any retailers' occupation tax
| 23 | | is to be shared, rebated, or refunded is to be determined
| 24 | | each year for the duration of the tax revenue sharing
| 25 | | agreement, (ii) the duration of the tax revenue sharing
| 26 | | agreement, and (iii) the name of any business who is not a
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| 1 | | party to the agreement but who directly or indirectly
| 2 | | receives a share, refund, or rebate of the retailers'
| 3 | | occupation tax; and | 4 | | (5) a copy of the tax revenue sharing agreement. | 5 | | An updated report must be filed by the county within 7 days
| 6 | | after the execution of any amendment made to a tax revenue
| 7 | | sharing agreement. | 8 | | Reports filed with the Department pursuant to this Section | 9 | | shall not constitute tax returns. But to the extent the | 10 | | Department is allowed or required by law to release any report | 11 | | or information provided to it by this Section, prior to any | 12 | | such release the Department shall remove any sales or other | 13 | | financial data provided that is identified with a specific | 14 | | retailer or seller. | 15 | | (f) On and after July 1, 2012
a home rule unit shall not | 16 | | enter
into any tax revenue sharing agreement prohibited by | 17 | | Subsection (c) of this
Section. This Section is a denial and | 18 | | limitation of home rule
powers and functions under subsection | 19 | | (g) of Section 6 of
Article VII of the Illinois Constitution. | 20 | | (Source: P.A. 93-920, eff. 8-12-04.) | 21 | | Section 10. The Illinois Municipal Code is amended by | 22 | | changing Section 8-11-21 as follows:
| 23 | | (65 ILCS 5/8-11-21)
| 24 | | Sec. 8-11-21. Tax revenue sharing agreements Agreements to |
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| 1 | | share or rebate occupation taxes .
| 2 | | (a) On and after
June 1, 2004, the corporate authorities of | 3 | | a municipality shall
not enter into any agreement to share or | 4 | | rebate
any
portion of retailers' occupation taxes generated by | 5 | | retail sales of tangible
personal
property if: (1) the tax on | 6 | | those retail sales, absent the agreement,
would have been paid | 7 | | to another unit of local government; and (2) the
retailer | 8 | | maintains, within that other unit of local government, a
retail | 9 | | location from which the tangible personal property is delivered | 10 | | to
purchasers, or a warehouse from which the tangible personal | 11 | | property is
delivered to purchasers. Any unit of local | 12 | | government
denied retailers' occupation tax revenue because of | 13 | | an agreement that violates
this Section may file an action in | 14 | | circuit court against only the municipality.
Any agreement | 15 | | entered into prior to
June 1,
2004 is not affected by this | 16 | | amendatory Act of the 93rd General Assembly.
Any unit of
local | 17 | | government that prevails in the circuit court action is | 18 | | entitled to
damages in
the amount of the tax revenue it was | 19 | | denied as a result of the agreement,
statutory interest, costs, | 20 | | reasonable attorney's fees, and an amount equal to
50% of the
| 21 | | tax.
| 22 | | (b) On and after the effective date of this amendatory Act | 23 | | of the 93rd
General Assembly, a home rule unit shall not enter | 24 | | into any agreement
prohibited
by this Section. This Section is | 25 | | a denial and limitation of home rule powers
and
functions under | 26 | | subsection (g) of Section 6 of Article VII of the Illinois
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| 1 | | Constitution.
| 2 | | (c) On and after July 1, 2012, the corporate authorities of
| 3 | | a municipality shall not enter into any tax revenue sharing
| 4 | | agreement, as defined in subsection (d) of this Section,
if: | 5 | | (1)
the tax on those retail sales, absent the agreement, would | 6 | | have
been paid to another unit of local government; and (2) the
| 7 | | retailer maintains, within that other unit of local government,
| 8 | | a retail location from which the tangible personal property is
| 9 | | delivered to purchasers, or a warehouse from which the tangible
| 10 | | personal property is delivered to purchasers. Any unit of local
| 11 | | government denied retailers' occupation tax revenue because of
| 12 | | a tax revenue sharing agreement that violates this Section
may | 13 | | file an action in circuit court against only the
municipality. | 14 | | Any tax revenue sharing agreement entered into
prior to July 1, | 15 | | 2012 is not affected by this amendatory Act of
the 97th General | 16 | | Assembly. Any unit of local government that
prevails in the | 17 | | circuit court action is entitled to damages in
the amount of | 18 | | the tax revenue it was denied as a result of the
tax revenue | 19 | | sharing agreement, statutory interest, costs,
reasonable | 20 | | attorney's fees, and an amount equal to 50% of the
tax. | 21 | | Any municipality that enters into a tax revenue sharing
| 22 | | agreement must complete and submit a report by electronic
| 23 | | filing to the Department of Revenue within 7 days after the
| 24 | | execution of an agreement. Any municipality that has entered
| 25 | | into a tax revenue sharing agreement before the effective date
| 26 | | of this amendatory Act of the 97th General Assembly that has
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| 1 | | not been terminated or expired as of the effective date of this
| 2 | | amendatory Act of the 97th General Assembly, shall submit a
| 3 | | report with respect to the agreements within 90 days after the
| 4 | | effective date of this amendatory Act of the 97th General
| 5 | | Assembly. | 6 | | (d) "Tax revenue sharing agreement" means, without
| 7 | | limitation: | 8 | | (1) any agreement between the municipality and any
| 9 | | person, business, or agent that provides for the sharing,
| 10 | | refunding, or rebating of any portion of any retailers'
| 11 | | occupation tax collected by the State; | 12 | | (2) any agreement between the municipality and an
| 13 | | intermediary or between an intermediary and a taxpayer for
| 14 | | the purpose of sharing, refunding, or rebating to any
| 15 | | taxpayer any portion of any retailers' occupation tax
| 16 | | collected by the State; or | 17 | | (3) any amendment to a tax revenue sharing agreement,
| 18 | | including, but not limited to, a change in the terms of the
| 19 | | agreement or a change or addition of a taxpayer. | 20 | | (e) The report described in this Section shall be made on a
| 21 | | form to be supplied by the Department of Revenue and shall
| 22 | | contain the following: | 23 | | (1) the names of the municipality and the business
| 24 | | entering into the agreement; | 25 | | (2) the location or locations of the business within
| 26 | | the municipality; |
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| 1 | | (3) the form shall also contain a statement, to be
| 2 | | answered in the affirmative or negative, as to whether or
| 3 | | not the company maintains additional places of business in
| 4 | | the State other than those described pursuant to paragraph
| 5 | | (2); | 6 | | (4) the terms of the agreement, including (i) the
| 7 | | manner in which the amount of any retailers' occupation tax
| 8 | | is to be shared, rebated, or refunded is to be determined
| 9 | | each year for the duration of the tax revenue sharing
| 10 | | agreement, (ii) the duration of the tax revenue sharing
| 11 | | agreement, and (iii) the name of any business who is not a
| 12 | | party to the agreement but who directly or indirectly
| 13 | | receives a share, refund, or rebate of the retailers'
| 14 | | occupation tax; and | 15 | | (5) a copy of the tax revenue sharing agreement. | 16 | | An updated report must be filed by the municipality within
| 17 | | revenue sharing agreement. | 18 | | Reports filed with the Department pursuant to this Section
| 19 | | shall not constitute tax returns. But to the extent the | 20 | | Department is allowed or required by law to release any report | 21 | | or information provided to it by this Section, prior to any | 22 | | such release the Department shall remove any sales or other | 23 | | financial data provided that is identified with a specific | 24 | | retailer or seller. | 25 | | (f) On and after July 1, 2012
a home rule unit shall not | 26 | | enter
into any tax revenue sharing agreement prohibited by |
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| 1 | | Subsection (c) of this
Section. This Section is a denial and | 2 | | limitation of home rule
powers and functions under subsection | 3 | | (g) of Section 6 of
Article VII of the Illinois Constitution. | 4 | | (Source: P.A. 93-920, eff. 8-12-04.) | 5 | | Section 15. The State Mandates Act is amended by adding | 6 | | Section 8.36 as follows: | 7 | | (30 ILCS 805/8.36 new) | 8 | | Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and | 9 | | 8
of this Act, no reimbursement by the State is required for | 10 | | the
implementation of any mandate created by this amendatory | 11 | | Act of
the 97th General Assembly. ".
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