Full Text of HB5543 100th General Assembly
HB5543 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB5543 Introduced , by Rep. Allen Skillicorn SYNOPSIS AS INTRODUCED: |
| 65 ILCS 5/1-1-10 | from Ch. 24, par. 1-1-10 | 65 ILCS 5/8-11-1 | from Ch. 24, par. 8-11-1 |
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Amends the Illinois Municipal Code. Gives non-home rule municipalities with a population of more than 2,000 the power to exercise all power provided to home rule units under Section 6 of Article VII of the Illinois Constitution, except for the powers to tax, to impose fees, and to incur debt. Provides that a home rule municipal retailer's occupation tax may be imposed up to a 1% increment if the corporate authorities of a home rule municipality by ordinance or resolution call for the submission to the electors of the municipality the question of whether the municipality shall impose such a tax or increase the rate of such a tax (rather than only shall be imposed in 1/4% increments). Effective immediately.
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| | FISCAL NOTE ACT MAY APPLY | HOME RULE NOTE ACT MAY APPLY | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning local government.
| 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 Sections 1-1-10 and 8-11-1 as follows:
| 6 | | (65 ILCS 5/1-1-10) (from Ch. 24, par. 1-1-10)
| 7 | | Sec. 1-1-10.
It is the policy of this State that all powers | 8 | | granted, either
expressly or by necessary implication, by this | 9 | | Code, by Illinois statute,
or the Illinois Constitution to | 10 | | municipalities may be exercised
by those municipalities, and | 11 | | the officers, employees and agents of each
notwithstanding | 12 | | effects on competition.
| 13 | | Notwithstanding any provision of law to the contrary, | 14 | | except for the powers to tax, to impose fees, and to incur | 15 | | debt, non-home rule municipalities with a population of more | 16 | | than 2,000 shall exercise all of the powers provided to home | 17 | | rule units under Section 6 of Article VII of the Illinois | 18 | | Constitution, subject to the limitations set forth in that | 19 | | Section. | 20 | | It is further the policy of this State that home-rule | 21 | | municipalities,
the officers, employees and agents of each may
| 22 | | (1) exercise any power and perform any function pertaining to | 23 | | their government
and affairs or (2) exercise those powers |
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| 1 | | within traditional areas of municipal
activity, except as | 2 | | limited by the Illinois Constitution or a proper limiting
| 3 | | statute, notwithstanding effects on competition.
| 4 | | It is the intention of the General Assembly that the "State | 5 | | action exemption"
to the application of federal antitrust | 6 | | statutes be fully available to
all municipalities, and the | 7 | | agents, officers and employees of each
to the extent they are | 8 | | exercising authority as aforesaid, including, but
not limited | 9 | | to, the provisions of Sections 6, 7 and 10 of Article VII of
| 10 | | the Illinois Constitution or the provisions of the following | 11 | | Illinois
statutes, as each is now in existence or may | 12 | | hereinafter be amended:
| 13 | | (a) The Illinois Local Library Act; "An Act to provide the | 14 | | manner of
levying or imposing taxes for the provision of | 15 | | special services to areas
within the boundaries of home rule | 16 | | units and non-home rule municipalities
and counties", approved | 17 | | September 21, 1973, as amended; "An Act to
facilitate the | 18 | | development and construction of housing, to provide
| 19 | | governmental assistance therefor, and to repeal an Act herein | 20 | | named", approved July
2, 1947, as amended; or the Housing | 21 | | Authorities Act, the Housing
Cooperation Law, the Blighted | 22 | | Areas Redevelopment Act of 1947, the Blighted
Vacant Areas | 23 | | Development Act of 1949, the Urban Community Conservation Act,
| 24 | | the Illinois Enterprise Zone Act or any other power exercised | 25 | | pursuant to
the Intergovernmental Cooperation Act; or
| 26 | | (b) Divisions 1, 2, 3, 4, 5 and 6 of Article 7 of the |
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| 1 | | Illinois Municipal
Code; Divisions 9, 10 and 11 of Article 8 of | 2 | | the Illinois Municipal Code;
Divisions 1, 2, 3, 4 and 5 of | 3 | | Article 9 of the Illinois Municipal Code; and
all of Divisions | 4 | | of Articles 10 and 11 of the Illinois Municipal Code; or
| 5 | | (c) Any other Illinois statute or constitutional provision | 6 | | now existing
or which may be enacted in the future, by which | 7 | | any municipality may exercise authority.
| 8 | | The "State action exemption" for which provision is made by | 9 | | this Section
shall be liberally construed in favor of such | 10 | | municipalities and the
agents, employees and officers thereof, | 11 | | and such exemption shall be
available notwithstanding that the | 12 | | action of the municipality or its
agents, officers or employees
| 13 | | constitutes an irregular exercise of constitutional or | 14 | | statutory powers.
However, this exemption shall not apply where | 15 | | the action alleged to be in
violation of antitrust law exceeds | 16 | | either (1) powers granted, either
expressly or by necessary | 17 | | implication, by Illinois statute or the Illinois
Constitution | 18 | | or (2) powers granted to a home rule municipality to perform
| 19 | | any function pertaining to its government and affairs or to act | 20 | | within
traditional areas of municipal activity, except as | 21 | | limited by the Illinois
Constitution or a proper limiting | 22 | | statute.
| 23 | | Notwithstanding the foregoing, where it is alleged that a | 24 | | violation of
the antitrust laws has occurred, the relief | 25 | | available to the plaintiffs
shall be limited to an injunction | 26 | | which enjoins the alleged activity.
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| 1 | | Nothing in this Section is intended to prohibit or limit | 2 | | any cause of
action other than under an antitrust theory.
| 3 | | (Source: P.A. 84-1050.)
| 4 | | (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
| 5 | | Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax | 6 | | Act. The
corporate authorities of a home rule municipality may
| 7 | | impose a tax upon all persons engaged in the business of | 8 | | selling tangible
personal property, other than an item of | 9 | | tangible personal property titled
or registered with an agency | 10 | | of this State's government, at retail in the
municipality on | 11 | | the gross receipts from these sales made in
the course of such | 12 | | business. If imposed, the tax shall only
be imposed in 1/4% | 13 | | increments or up to a 1% increment if the corporate authorities | 14 | | of a home rule municipality by ordinance or resolution call for | 15 | | the submission to the electors, through referendum, of the | 16 | | municipality the question of whether the municipality shall | 17 | | impose such a tax or increase the rate of such a tax . On and | 18 | | after September 1, 1991, this
additional tax may not be imposed | 19 | | on the sales of food for human
consumption that is to be | 20 | | consumed off the premises where it
is sold (other than | 21 | | alcoholic beverages, soft drinks and food that has
been | 22 | | prepared for immediate consumption) and prescription and
| 23 | | nonprescription medicines, drugs, medical appliances and | 24 | | insulin, urine
testing materials, syringes and needles used by | 25 | | diabetics. The tax imposed
by a home rule municipality under |
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| 1 | | this Section and all
civil penalties that may be assessed as an | 2 | | incident of the tax shall
be collected and enforced by the | 3 | | State Department of
Revenue. The certificate of registration | 4 | | that is issued by
the Department to a retailer under the | 5 | | Retailers' Occupation Tax Act
shall permit the retailer to | 6 | | engage in a business that is taxable
under any ordinance or | 7 | | resolution enacted pursuant to
this Section without | 8 | | registering separately with the Department under such
| 9 | | ordinance or resolution or under this Section. The Department | 10 | | shall have
full power to administer and enforce this Section; | 11 | | to collect all taxes and
penalties due hereunder; to dispose of | 12 | | taxes and penalties so collected in
the manner hereinafter | 13 | | provided; and to determine all rights to
credit memoranda | 14 | | arising on account of the erroneous payment of tax or
penalty | 15 | | hereunder. In the administration of, and compliance with, this
| 16 | | Section the Department and persons who are subject to this | 17 | | Section shall
have the same rights, remedies, privileges, | 18 | | immunities, powers and duties,
and be subject to the same | 19 | | conditions, restrictions, limitations, penalties
and | 20 | | definitions of terms, and employ the same modes of procedure, | 21 | | as are
prescribed in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, | 22 | | 1m, 1n, 2 through
2-65 (in
respect to all provisions therein | 23 | | other than the State rate of tax), 2c, 3
(except as to the | 24 | | disposition of taxes and penalties collected), 4, 5, 5a,
5b, | 25 | | 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, | 26 | | 9, 10, 11,
12 and 13 of the Retailers' Occupation Tax Act and |
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| 1 | | Section 3-7 of the
Uniform Penalty and Interest Act, as fully | 2 | | as if those provisions were
set forth herein.
| 3 | | No tax may be imposed by a home rule municipality under | 4 | | this Section
unless the municipality also imposes a tax at the | 5 | | same rate under Section
8-11-5 of this Act.
| 6 | | Persons subject to any tax imposed under the authority | 7 | | granted in this
Section may reimburse themselves for their | 8 | | seller's tax liability hereunder
by separately stating that tax | 9 | | as an additional charge, which charge may be
stated in | 10 | | combination, in a single amount, with State tax which sellers | 11 | | are
required to collect under the Use Tax Act, pursuant to such | 12 | | bracket
schedules as the Department may prescribe.
| 13 | | Whenever the Department determines that a refund should be | 14 | | made under
this Section to a claimant instead of issuing a | 15 | | credit memorandum, the
Department shall notify the State | 16 | | Comptroller, who shall cause the
order to be drawn for the | 17 | | amount specified and to the person named
in the notification | 18 | | from the Department. The refund shall be paid by the
State | 19 | | Treasurer out of the home rule municipal retailers' occupation | 20 | | tax fund.
| 21 | | The Department shall immediately pay over to the State
| 22 | | Treasurer, ex officio, as trustee, all taxes and penalties | 23 | | collected
hereunder. | 24 | | As soon as possible after the first day of each month, | 25 | | beginning January 1, 2011, upon certification of the Department | 26 | | of Revenue, the Comptroller shall order transferred, and the |
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| 1 | | Treasurer shall transfer, to the STAR Bonds Revenue Fund the | 2 | | local sales tax increment, as defined in the Innovation | 3 | | Development and Economy Act, collected under this Section | 4 | | during the second preceding calendar month for sales within a | 5 | | STAR bond district. | 6 | | After the monthly transfer to the STAR Bonds Revenue Fund, | 7 | | on or before the 25th day of each calendar month, the
| 8 | | Department shall prepare and certify to the Comptroller the | 9 | | disbursement of
stated sums of money to named municipalities, | 10 | | the municipalities to be
those from which retailers have paid | 11 | | taxes or penalties hereunder to the
Department during the | 12 | | second preceding calendar month. The amount to be
paid to each | 13 | | municipality shall be the amount (not including credit
| 14 | | memoranda) collected hereunder during the second preceding | 15 | | calendar month
by the Department plus an amount the Department | 16 | | determines is necessary to
offset any amounts that were | 17 | | erroneously paid to a different
taxing body, and not including | 18 | | an amount equal to the amount of refunds
made during the second | 19 | | preceding calendar month by the Department on
behalf of such | 20 | | municipality, and not including any amount that the Department
| 21 | | determines is necessary to offset any amounts that were payable | 22 | | to a
different taxing body but were erroneously paid to the | 23 | | municipality, and not including any amounts that are | 24 | | transferred to the STAR Bonds Revenue Fund, less 2% of the | 25 | | remainder, which the Department shall transfer into the Tax | 26 | | Compliance and Administration Fund. The Department, at the time |
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| 1 | | of each monthly disbursement to the municipalities, shall | 2 | | prepare and certify to the State Comptroller the amount to be | 3 | | transferred into the Tax Compliance and Administration Fund | 4 | | under this Section. Within
10 days after receipt by the | 5 | | Comptroller of the disbursement certification
to the | 6 | | municipalities and the Tax Compliance and Administration Fund | 7 | | provided for in this Section to be given to the
Comptroller by | 8 | | the Department, the Comptroller shall cause the orders to be
| 9 | | drawn for the respective amounts in accordance with the | 10 | | directions
contained in the certification.
| 11 | | In addition to the disbursement required by the preceding | 12 | | paragraph and
in order to mitigate delays caused by | 13 | | distribution procedures, an
allocation shall, if requested, be | 14 | | made within 10 days after January 14,
1991, and in November of | 15 | | 1991 and each year thereafter, to each
municipality that | 16 | | received more than $500,000 during the preceding fiscal
year, | 17 | | (July 1 through June 30) whether collected by the municipality | 18 | | or
disbursed by the Department as required by this Section. | 19 | | Within 10 days
after January 14, 1991, participating | 20 | | municipalities shall notify the
Department in writing of their | 21 | | intent to participate. In addition, for the
initial | 22 | | distribution, participating municipalities shall certify to | 23 | | the
Department the amounts collected by the municipality for | 24 | | each month under
its home rule occupation and service | 25 | | occupation tax during the period July
1, 1989 through June 30, | 26 | | 1990. The allocation within 10 days after January
14, 1991, |
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| 1 | | shall be in an amount equal to the monthly average of these
| 2 | | amounts, excluding the 2 months of highest receipts. The | 3 | | monthly average
for the period of July 1, 1990 through June 30, | 4 | | 1991 will be determined as
follows: the amounts collected by | 5 | | the municipality under its home rule
occupation and service | 6 | | occupation tax during the period of July 1, 1990
through | 7 | | September 30, 1990, plus amounts collected by the Department | 8 | | and
paid to such municipality through June 30, 1991, excluding | 9 | | the 2 months of
highest receipts. The monthly average for each | 10 | | subsequent period of July 1
through June 30 shall be an amount | 11 | | equal to the monthly distribution made
to each such | 12 | | municipality under the preceding paragraph during this period,
| 13 | | excluding the 2 months of highest receipts. The distribution | 14 | | made in
November 1991 and each year thereafter under this | 15 | | paragraph and the
preceding paragraph shall be reduced by the | 16 | | amount allocated and disbursed
under this paragraph in the | 17 | | preceding period of July 1 through June 30.
The Department | 18 | | shall prepare and certify to the Comptroller for
disbursement | 19 | | the allocations made in accordance with this paragraph.
| 20 | | For the purpose of determining the local governmental unit | 21 | | whose tax
is applicable, a retail sale by a producer of coal or | 22 | | other mineral
mined in Illinois is a sale at retail at the | 23 | | place where the coal or
other mineral mined in Illinois is | 24 | | extracted from the earth. This
paragraph does not apply to coal | 25 | | or other mineral when it is delivered
or shipped by the seller | 26 | | to the purchaser at a point outside Illinois so
that the sale |
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| 1 | | is exempt under the United States Constitution as a sale in
| 2 | | interstate or foreign commerce.
| 3 | | Nothing in this Section shall be construed to authorize a
| 4 | | municipality to impose a tax upon the privilege of engaging in | 5 | | any
business which under the Constitution of the United States | 6 | | may not be
made the subject of taxation by this State.
| 7 | | An ordinance or resolution imposing or discontinuing a tax | 8 | | hereunder or
effecting a change in the rate thereof shall be | 9 | | adopted and a certified
copy thereof filed with the Department | 10 | | on or before the first day of June,
whereupon the Department | 11 | | shall proceed to administer and enforce this
Section as of the | 12 | | first day of September next following the
adoption and filing. | 13 | | Beginning January 1, 1992, an ordinance or resolution
imposing | 14 | | or discontinuing the tax hereunder or effecting a change in the
| 15 | | rate thereof shall be adopted and a certified copy thereof | 16 | | filed with the
Department on or before the first day of July, | 17 | | whereupon the Department
shall proceed to administer and | 18 | | enforce this Section as of the first day of
October next | 19 | | following such adoption and filing. Beginning January 1, 1993,
| 20 | | an ordinance or resolution imposing or discontinuing the tax | 21 | | hereunder or
effecting a change in the rate thereof shall be | 22 | | adopted and a certified
copy thereof filed with the Department | 23 | | on or before the first day of
October, whereupon the Department | 24 | | shall proceed to administer and enforce
this Section as of the | 25 | | first day of January next following the
adoption and filing.
| 26 | | However, a municipality located in a county with a population |
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| 1 | | in excess of
3,000,000 that elected to become a home rule unit | 2 | | at the general primary
election in
1994 may adopt an ordinance | 3 | | or resolution imposing the tax under this Section
and file a | 4 | | certified copy of the ordinance or resolution with the | 5 | | Department on
or before July 1, 1994. The Department shall then | 6 | | proceed to administer and
enforce this Section as of October 1, | 7 | | 1994.
Beginning April 1, 1998, an ordinance or
resolution | 8 | | imposing or
discontinuing the tax hereunder or effecting a | 9 | | change in the rate thereof shall
either (i) be adopted and a | 10 | | certified copy thereof filed with the Department on
or
before | 11 | | the first day of April, whereupon the Department shall proceed | 12 | | to
administer and enforce this Section as of the first day of | 13 | | July next following
the adoption and filing; or (ii) be adopted | 14 | | and a certified copy thereof filed
with the Department on or | 15 | | before the first day of October, whereupon the
Department shall | 16 | | proceed to administer and enforce this Section as of the first
| 17 | | day of January next following the adoption and filing.
| 18 | | When certifying the amount of a monthly disbursement to a | 19 | | municipality
under this Section, the Department shall increase | 20 | | or decrease the amount by
an amount necessary to offset any | 21 | | misallocation of previous disbursements.
The offset amount | 22 | | shall be the amount erroneously disbursed
within the previous 6 | 23 | | months from the time a misallocation is discovered.
| 24 | | Any unobligated balance remaining in the Municipal | 25 | | Retailers' Occupation
Tax Fund on December 31, 1989, which fund | 26 | | was abolished by Public Act
85-1135, and all receipts of |
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| 1 | | municipal tax as a result of audits of
liability periods prior | 2 | | to January 1, 1990, shall be paid into the Local
Government Tax | 3 | | Fund for distribution as provided by this Section prior to
the | 4 | | enactment of Public Act 85-1135. All receipts of municipal tax | 5 | | as a
result of an assessment not arising from an audit, for | 6 | | liability periods
prior to January 1, 1990, shall be paid into | 7 | | the Local Government Tax Fund
for distribution before July 1, | 8 | | 1990, as provided by this Section prior to
the enactment of | 9 | | Public Act 85-1135; and on and after July 1,
1990, all such | 10 | | receipts shall be distributed as provided in Section
6z-18 of | 11 | | the State Finance Act.
| 12 | | As used in this Section, "municipal" and "municipality" | 13 | | means a city,
village or incorporated town, including an | 14 | | incorporated town that has
superseded a civil township.
| 15 | | This Section shall be known and may be cited as the Home | 16 | | Rule Municipal
Retailers' Occupation Tax Act.
| 17 | | (Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17.)
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.
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