Full Text of SB0488 100th General Assembly
SB0488sam001 100TH GENERAL ASSEMBLY | Sen. Andy Manar Filed: 4/5/2018
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| 1 | | AMENDMENT TO SENATE BILL 488
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 488 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Municipal Code is amended by | 5 | | changing Sections 8-11-1, 8-11-5, and 8-11-6 as follows:
| 6 | | (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
| 7 | | Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax | 8 | | Act. The
corporate authorities of a home rule municipality may
| 9 | | 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 |
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| 1 | | that is to be consumed off the premises where it
is sold (other | 2 | | than alcoholic beverages, soft drinks and food that has
been | 3 | | prepared for immediate consumption) and prescription and
| 4 | | nonprescription medicines, drugs, medical appliances and | 5 | | insulin, urine
testing materials, syringes and needles used by | 6 | | diabetics. The tax imposed
by a home rule municipality under | 7 | | this Section and all
civil penalties that may be assessed as an | 8 | | incident of the tax shall
be collected and enforced by the | 9 | | State Department of
Revenue. The certificate of registration | 10 | | that is issued by
the Department to a retailer under the | 11 | | Retailers' Occupation Tax Act
shall permit the retailer to | 12 | | engage in a business that is taxable
under any ordinance or | 13 | | resolution enacted pursuant to
this Section without | 14 | | registering separately with the Department under such
| 15 | | ordinance or resolution or under this Section. The Department | 16 | | shall have
full power to administer and enforce this Section; | 17 | | to collect all taxes and
penalties due hereunder; to dispose of | 18 | | taxes and penalties so collected in
the manner hereinafter | 19 | | provided; and to determine all rights to
credit memoranda | 20 | | arising on account of the erroneous payment of tax or
penalty | 21 | | hereunder. In the administration of, and compliance with, this
| 22 | | Section the Department and persons who are subject to this | 23 | | Section shall
have the same rights, remedies, privileges, | 24 | | immunities, powers and duties,
and be subject to the same | 25 | | conditions, restrictions, limitations, penalties
and | 26 | | definitions of terms, and employ the same modes of procedure, |
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| 1 | | as are
prescribed in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, | 2 | | 1m, 1n, 2 through
2-65 (in
respect to all provisions therein | 3 | | other than the State rate of tax), 2c, 3
(except as to the | 4 | | disposition of taxes and penalties collected), 4, 5, 5a,
5b, | 5 | | 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, | 6 | | 9, 10, 11,
12 and 13 of the Retailers' Occupation Tax Act and | 7 | | Section 3-7 of the
Uniform Penalty and Interest Act, as fully | 8 | | as if those provisions were
set forth herein.
| 9 | | No tax may be imposed by a home rule municipality under | 10 | | this Section
unless the municipality also imposes a tax at the | 11 | | same rate under Section
8-11-5 of this Act.
| 12 | | Persons subject to any tax imposed under the authority | 13 | | granted in this
Section may reimburse themselves for their | 14 | | seller's tax liability hereunder
by separately stating that tax | 15 | | as an additional charge, which charge may be
stated in | 16 | | combination, in a single amount, with State tax which sellers | 17 | | are
required to collect under the Use Tax Act, pursuant to such | 18 | | bracket
schedules as the Department may prescribe.
| 19 | | Whenever the Department determines that a refund should be | 20 | | made under
this Section to a claimant instead of issuing a | 21 | | credit memorandum, the
Department shall notify the State | 22 | | Comptroller, who shall cause the
order to be drawn for the | 23 | | amount specified and to the person named
in the notification | 24 | | from the Department. The refund shall be paid by the
State | 25 | | Treasurer out of the home rule municipal retailers' occupation | 26 | | tax fund.
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| 1 | | The Department shall immediately pay over to the State
| 2 | | Treasurer, ex officio, as trustee, all taxes and penalties | 3 | | collected
hereunder. | 4 | | As soon as possible after the first day of each month, | 5 | | beginning January 1, 2011, upon certification of the Department | 6 | | of Revenue, the Comptroller shall order transferred, and the | 7 | | Treasurer shall transfer, to the STAR Bonds Revenue Fund the | 8 | | local sales tax increment, as defined in the Innovation | 9 | | Development and Economy Act, collected under this Section | 10 | | during the second preceding calendar month for sales within a | 11 | | STAR bond district. | 12 | | After the monthly transfer to the STAR Bonds Revenue Fund, | 13 | | on or before the 25th day of each calendar month, the
| 14 | | Department shall prepare and certify to the Comptroller the | 15 | | disbursement of
stated sums of money to named municipalities, | 16 | | the municipalities to be
those from which retailers have paid | 17 | | taxes or penalties hereunder to the
Department during the | 18 | | second preceding calendar month. The amount to be
paid to each | 19 | | municipality shall be the amount (not including credit
| 20 | | memoranda) collected hereunder during the second preceding | 21 | | calendar month
by the Department plus an amount the Department | 22 | | determines is necessary to
offset any amounts that were | 23 | | erroneously paid to a different
taxing body, and not including | 24 | | an amount equal to the amount of refunds
made during the second | 25 | | preceding calendar month by the Department on
behalf of such | 26 | | municipality, and not including any amount that the Department
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| 1 | | determines is necessary to offset any amounts that were payable | 2 | | to a
different taxing body but were erroneously paid to the | 3 | | municipality, and not including any amounts that are | 4 | | transferred to the STAR Bonds Revenue Fund, less 2% of the | 5 | | remainder, which the Department shall transfer into the Tax | 6 | | Compliance and Administration Fund. The Department, at the time | 7 | | of each monthly disbursement to the municipalities, shall | 8 | | prepare and certify to the State Comptroller the amount to be | 9 | | transferred into the Tax Compliance and Administration Fund | 10 | | under this Section. Within
10 days after receipt by the | 11 | | Comptroller of the disbursement certification
to the | 12 | | municipalities and the Tax Compliance and Administration Fund | 13 | | provided for in this Section to be given to the
Comptroller by | 14 | | the Department, the Comptroller shall cause the orders to be
| 15 | | drawn for the respective amounts in accordance with the | 16 | | directions
contained in the certification.
| 17 | | In addition to the disbursement required by the preceding | 18 | | paragraph and
in order to mitigate delays caused by | 19 | | distribution procedures, an
allocation shall, if requested, be | 20 | | made within 10 days after January 14,
1991, and in November of | 21 | | 1991 and each year thereafter, to each
municipality that | 22 | | received more than $500,000 during the preceding fiscal
year, | 23 | | (July 1 through June 30) whether collected by the municipality | 24 | | or
disbursed by the Department as required by this Section. | 25 | | Within 10 days
after January 14, 1991, participating | 26 | | municipalities shall notify the
Department in writing of their |
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| 1 | | intent to participate. In addition, for the
initial | 2 | | distribution, participating municipalities shall certify to | 3 | | the
Department the amounts collected by the municipality for | 4 | | each month under
its home rule occupation and service | 5 | | occupation tax during the period July
1, 1989 through June 30, | 6 | | 1990. The allocation within 10 days after January
14, 1991, | 7 | | shall be in an amount equal to the monthly average of these
| 8 | | amounts, excluding the 2 months of highest receipts. The | 9 | | monthly average
for the period of July 1, 1990 through June 30, | 10 | | 1991 will be determined as
follows: the amounts collected by | 11 | | the municipality under its home rule
occupation and service | 12 | | occupation tax during the period of July 1, 1990
through | 13 | | September 30, 1990, plus amounts collected by the Department | 14 | | and
paid to such municipality through June 30, 1991, excluding | 15 | | the 2 months of
highest receipts. The monthly average for each | 16 | | subsequent period of July 1
through June 30 shall be an amount | 17 | | equal to the monthly distribution made
to each such | 18 | | municipality under the preceding paragraph during this period,
| 19 | | excluding the 2 months of highest receipts. The distribution | 20 | | made in
November 1991 and each year thereafter under this | 21 | | paragraph and the
preceding paragraph shall be reduced by the | 22 | | amount allocated and disbursed
under this paragraph in the | 23 | | preceding period of July 1 through June 30.
The Department | 24 | | shall prepare and certify to the Comptroller for
disbursement | 25 | | the allocations made in accordance with this paragraph.
| 26 | | For the purpose of determining the local governmental unit |
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| 1 | | whose tax
is applicable, a retail sale by a producer of coal or | 2 | | other mineral
mined in Illinois is a sale at retail at the | 3 | | place where the coal or
other mineral mined in Illinois is | 4 | | extracted from the earth. This
paragraph does not apply to coal | 5 | | or other mineral when it is delivered
or shipped by the seller | 6 | | to the purchaser at a point outside Illinois so
that the sale | 7 | | is exempt under the United States Constitution as a sale in
| 8 | | interstate or foreign commerce.
| 9 | | Nothing in this Section shall be construed to authorize a
| 10 | | municipality to impose a tax upon the privilege of engaging in | 11 | | any
business which under the Constitution of the United States | 12 | | may not be
made the subject of taxation by this State.
| 13 | | An ordinance or resolution imposing or discontinuing a tax | 14 | | hereunder or
effecting a change in the rate thereof shall be | 15 | | adopted and a certified
copy thereof filed with the Department | 16 | | on or before the first day of June,
whereupon the Department | 17 | | shall proceed to administer and enforce this
Section as of the | 18 | | first day of September next following the
adoption and filing. | 19 | | Beginning January 1, 1992, an ordinance or resolution
imposing | 20 | | or discontinuing the tax hereunder or effecting a change in the
| 21 | | rate thereof shall be adopted and a certified copy thereof | 22 | | filed with the
Department on or before the first day of July, | 23 | | whereupon the Department
shall proceed to administer and | 24 | | enforce this Section as of the first day of
October next | 25 | | following such adoption and filing. Beginning January 1, 1993,
| 26 | | an ordinance or resolution imposing or discontinuing the tax |
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| 1 | | hereunder or
effecting a change in the rate thereof shall be | 2 | | adopted and a certified
copy thereof filed with the Department | 3 | | on or before the first day of
October, whereupon the Department | 4 | | shall proceed to administer and enforce
this Section as of the | 5 | | first day of January next following the
adoption and filing.
| 6 | | However, a municipality located in a county with a population | 7 | | in excess of
3,000,000 that elected to become a home rule unit | 8 | | at the general primary
election in
1994 may adopt an ordinance | 9 | | or resolution imposing the tax under this Section
and file a | 10 | | certified copy of the ordinance or resolution with the | 11 | | Department on
or before July 1, 1994. The Department shall then | 12 | | proceed to administer and
enforce this Section as of October 1, | 13 | | 1994.
Beginning April 1, 1998, an ordinance or
resolution | 14 | | imposing or
discontinuing the tax hereunder or effecting a | 15 | | change in the rate thereof shall
either (i) be adopted and a | 16 | | certified copy thereof filed with the Department on
or
before | 17 | | the first day of April, whereupon the Department shall proceed | 18 | | to
administer and enforce this Section as of the first day of | 19 | | July next following
the adoption and filing; or (ii) be adopted | 20 | | and a certified copy thereof filed
with the Department on or | 21 | | before the first day of October, whereupon the
Department shall | 22 | | proceed to administer and enforce this Section as of the first
| 23 | | day of January next following the adoption and filing. | 24 | | Notwithstanding the provisions of this Section, an ordinance | 25 | | passed by the City of Springfield in calendar year 2018 | 26 | | effecting a change in the rate of a tax imposed under this |
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| 1 | | Section shall be adopted and a certified
copy thereof filed | 2 | | with the Department on or before April 1, 2018,
whereupon the | 3 | | Department shall proceed to administer and enforce the change | 4 | | as of May 1, 2018.
| 5 | | When certifying the amount of a monthly disbursement to a | 6 | | municipality
under this Section, the Department shall increase | 7 | | or decrease the amount by
an amount necessary to offset any | 8 | | misallocation of previous disbursements.
The offset amount | 9 | | shall be the amount erroneously disbursed
within the previous 6 | 10 | | months from the time a misallocation is discovered.
| 11 | | Any unobligated balance remaining in the Municipal | 12 | | Retailers' Occupation
Tax Fund on December 31, 1989, which fund | 13 | | was abolished by Public Act
85-1135, and all receipts of | 14 | | municipal tax as a result of audits of
liability periods prior | 15 | | to January 1, 1990, shall be paid into the Local
Government Tax | 16 | | Fund for distribution as provided by this Section prior to
the | 17 | | enactment of Public Act 85-1135. All receipts of municipal tax | 18 | | as a
result of an assessment not arising from an audit, for | 19 | | liability periods
prior to January 1, 1990, shall be paid into | 20 | | the Local Government Tax Fund
for distribution before July 1, | 21 | | 1990, as provided by this Section prior to
the enactment of | 22 | | Public Act 85-1135; and on and after July 1,
1990, all such | 23 | | receipts shall be distributed as provided in Section
6z-18 of | 24 | | the State Finance Act.
| 25 | | As used in this Section, "municipal" and "municipality" | 26 | | means a city,
village or incorporated town, including an |
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| 1 | | incorporated town that has
superseded a civil township.
| 2 | | This Section shall be known and may be cited as the Home | 3 | | Rule Municipal
Retailers' Occupation Tax Act.
| 4 | | (Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17.)
| 5 | | (65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
| 6 | | Sec. 8-11-5. Home Rule Municipal Service Occupation Tax | 7 | | Act. The
corporate authorities of a home rule municipality may
| 8 | | impose a tax upon all persons engaged, in such municipality, in | 9 | | the
business of making sales of service at the same rate of tax | 10 | | imposed
pursuant to Section 8-11-1, of the selling price of all | 11 | | tangible personal
property transferred by such servicemen | 12 | | either in the form of tangible
personal property or in the form | 13 | | of real estate as an incident to a sale of
service. If imposed, | 14 | | such tax shall only be imposed in 1/4% increments. On
and after | 15 | | September 1, 1991, this additional tax may not be imposed on | 16 | | the
sales of food for human consumption which is to be consumed | 17 | | off the
premises where it is sold (other than alcoholic | 18 | | beverages, soft
drinks and food which has been prepared for | 19 | | immediate consumption) and
prescription and nonprescription | 20 | | medicines, drugs, medical appliances and
insulin, urine | 21 | | testing materials, syringes and needles used by diabetics.
The | 22 | | tax imposed by a home rule municipality
pursuant to this | 23 | | Section and all civil penalties that may be assessed as
an | 24 | | incident thereof shall be collected and enforced by the State
| 25 | | Department of Revenue. The certificate of registration which is |
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| 1 | | issued
by the Department to a retailer under the Retailers' | 2 | | Occupation Tax
Act or under the Service Occupation Tax Act | 3 | | shall permit
such registrant to engage in a business which is | 4 | | taxable under any
ordinance or resolution enacted pursuant to | 5 | | this Section without
registering separately with the | 6 | | Department under such ordinance or
resolution or under this | 7 | | Section. The Department shall have full power
to administer and | 8 | | enforce this Section; to collect all taxes and
penalties due | 9 | | hereunder; to dispose of taxes and penalties so collected
in | 10 | | the manner hereinafter provided, and to determine all rights to
| 11 | | credit memoranda arising on account of the erroneous payment of | 12 | | tax or
penalty hereunder. In the administration of, and | 13 | | compliance with, this
Section the Department and persons who | 14 | | are subject to this Section
shall have the same rights, | 15 | | remedies, privileges, immunities, powers and
duties, and be | 16 | | subject to the same conditions, restrictions,
limitations, | 17 | | penalties and definitions of terms, and employ the same
modes | 18 | | of procedure, as are prescribed in Sections 1a-1, 2, 2a, 3 | 19 | | through
3-50 (in respect to all provisions therein other than | 20 | | the State rate of
tax), 4 (except that the reference to the | 21 | | State shall be to the taxing
municipality), 5, 7, 8 (except | 22 | | that the jurisdiction to which the tax shall
be a debt to the | 23 | | extent indicated in that Section 8 shall be the taxing
| 24 | | municipality), 9 (except as to the disposition of taxes and | 25 | | penalties
collected, and except that the returned merchandise | 26 | | credit for this
municipal tax may not be taken against any |
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| 1 | | State tax), 10, 11, 12
(except the reference therein to Section | 2 | | 2b of the Retailers' Occupation
Tax Act), 13 (except that any | 3 | | reference to the State shall mean the
taxing municipality), the | 4 | | first paragraph of Section 15, 16, 17
(except that credit | 5 | | memoranda issued hereunder may not be used to
discharge any | 6 | | State tax liability), 18, 19 and 20 of the Service
Occupation | 7 | | Tax Act and Section 3-7 of the Uniform Penalty and Interest | 8 | | Act,
as fully as if those provisions were set forth herein.
| 9 | | No tax may be imposed by a home rule municipality pursuant | 10 | | to this
Section unless such municipality also imposes a tax at | 11 | | the same rate
pursuant to Section 8-11-1 of this Act.
| 12 | | Persons subject to any tax imposed pursuant to the | 13 | | authority granted
in this Section may reimburse themselves for | 14 | | their serviceman's tax
liability hereunder by separately | 15 | | stating such tax as an additional
charge, which charge may be | 16 | | stated in combination, in a single amount,
with State tax which | 17 | | servicemen are authorized to collect under the
Service Use Tax | 18 | | Act, pursuant to such bracket schedules as the
Department may | 19 | | prescribe.
| 20 | | Whenever the Department determines that a refund should be | 21 | | made under
this Section to a claimant instead of issuing credit | 22 | | memorandum, the
Department shall notify the State Comptroller, | 23 | | who shall cause the
order to be drawn for the amount specified, | 24 | | and to the person named,
in such notification from the | 25 | | Department. Such refund shall be paid by
the State Treasurer | 26 | | out of the home rule municipal retailers' occupation
tax fund.
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| 1 | | The Department shall forthwith pay over to the State | 2 | | Treasurer,
ex-officio, as trustee, all taxes and penalties | 3 | | collected hereunder. | 4 | | As soon as possible after the first day of each month, | 5 | | beginning January 1, 2011, upon certification of the Department | 6 | | of Revenue, the Comptroller shall order transferred, and the | 7 | | Treasurer shall transfer, to the STAR Bonds Revenue Fund the | 8 | | local sales tax increment, as defined in the Innovation | 9 | | Development and Economy Act, collected under this Section | 10 | | during the second preceding calendar month for sales within a | 11 | | STAR bond district. | 12 | | After the monthly transfer to the STAR Bonds Revenue Fund, | 13 | | on
or before the 25th day of each calendar month, the | 14 | | Department shall
prepare and certify to the Comptroller the | 15 | | disbursement of stated sums
of money to named municipalities, | 16 | | the municipalities to be those from
which suppliers and | 17 | | servicemen have paid taxes or penalties hereunder to
the | 18 | | Department during the second preceding calendar month. The | 19 | | amount
to be paid to each municipality shall be the amount (not | 20 | | including credit
memoranda) collected hereunder during the | 21 | | second preceding calendar
month by the Department, and not | 22 | | including an amount equal to the amount
of refunds made during | 23 | | the second preceding calendar month by the
Department on behalf | 24 | | of such municipality, and not including any amounts that are | 25 | | transferred to the STAR Bonds Revenue Fund, less 2% of the | 26 | | remainder, which the Department shall transfer into the Tax |
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| 1 | | Compliance and Administration Fund. The Department, at the time | 2 | | of each monthly disbursement to the municipalities, shall | 3 | | prepare and certify to the State Comptroller the amount to be | 4 | | transferred into the Tax Compliance and Administration Fund | 5 | | under this Section. Within 10 days after receipt, by
the | 6 | | Comptroller, of the disbursement certification to the | 7 | | municipalities and the Tax Compliance and Administration Fund
| 8 | | provided for in this Section to be given to the Comptroller by | 9 | | the
Department, the Comptroller shall cause the orders to be | 10 | | drawn for the
respective amounts in accordance with the | 11 | | directions contained in such
certification.
| 12 | | In addition to the disbursement required by the preceding | 13 | | paragraph and
in order to mitigate delays caused by | 14 | | distribution procedures, an
allocation shall, if requested, be | 15 | | made within 10 days after January 14, 1991,
and in November of | 16 | | 1991 and each year thereafter, to each municipality that
| 17 | | received more than $500,000 during the preceding fiscal year, | 18 | | (July 1 through
June 30) whether collected by the municipality | 19 | | or disbursed by the Department
as required by this Section. | 20 | | Within 10 days after January 14, 1991,
participating | 21 | | municipalities shall notify the Department in writing of their
| 22 | | intent to participate. In addition, for the initial | 23 | | distribution,
participating municipalities shall certify to | 24 | | the Department the amounts
collected by the municipality for | 25 | | each month under its home rule occupation and
service | 26 | | occupation tax during the period July 1, 1989 through June 30, |
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| 1 | | 1990.
The allocation within 10 days after January 14, 1991,
| 2 | | shall be in an amount equal to the monthly average of these | 3 | | amounts,
excluding the 2 months of highest receipts. Monthly | 4 | | average for the period
of July 1, 1990 through June 30, 1991 | 5 | | will be determined as follows: the
amounts collected by the | 6 | | municipality under its home rule occupation and
service | 7 | | occupation tax during the period of July 1, 1990 through | 8 | | September 30,
1990, plus amounts collected by the Department | 9 | | and paid to such
municipality through June 30, 1991, excluding | 10 | | the 2 months of highest
receipts. The monthly average for each | 11 | | subsequent period of July 1 through
June 30 shall be an amount | 12 | | equal to the monthly distribution made to each
such | 13 | | municipality under the preceding paragraph during this period,
| 14 | | excluding the 2 months of highest receipts. The distribution | 15 | | made in
November 1991 and each year thereafter under this | 16 | | paragraph and the
preceding paragraph shall be reduced by the | 17 | | amount allocated and disbursed
under this paragraph in the | 18 | | preceding period of July 1 through June 30.
The Department | 19 | | shall prepare and certify to the Comptroller for
disbursement | 20 | | the allocations made in accordance with this paragraph.
| 21 | | Nothing in this Section shall be construed to authorize a
| 22 | | municipality to impose a tax upon the privilege of engaging in | 23 | | any
business which under the constitution of the United States | 24 | | may not be
made the subject of taxation by this State.
| 25 | | An ordinance or resolution imposing or discontinuing a tax | 26 | | hereunder or
effecting a change in the rate thereof shall be |
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| 1 | | adopted and a certified
copy thereof filed with the Department | 2 | | on or before the first day of June,
whereupon the Department | 3 | | shall proceed to administer and enforce this
Section as of the | 4 | | first day of September next following such adoption and
filing. | 5 | | Beginning January 1, 1992, an ordinance or resolution imposing | 6 | | or
discontinuing the tax hereunder or effecting a change in the | 7 | | rate thereof
shall be adopted and a certified copy thereof | 8 | | filed with the Department on
or before the first day of July, | 9 | | whereupon the Department shall proceed to
administer and | 10 | | enforce this Section as of the first day of October next
| 11 | | following such adoption and filing. Beginning January 1, 1993, | 12 | | an ordinance
or resolution imposing or discontinuing the tax | 13 | | hereunder or effecting a
change in the rate thereof shall be | 14 | | adopted and a certified copy thereof
filed with the Department | 15 | | on or before the first day of October, whereupon
the Department | 16 | | shall proceed to administer and enforce this Section as of
the | 17 | | first day of January next following such adoption and filing.
| 18 | | However, a municipality located in a county with a population | 19 | | in excess of
3,000,000 that elected to become a home rule unit | 20 | | at the general primary
election in 1994 may adopt an ordinance | 21 | | or resolution imposing the tax under
this Section and file a | 22 | | certified copy of the ordinance or resolution with the
| 23 | | Department on or before July 1, 1994. The Department shall then | 24 | | proceed to
administer and enforce this Section as of October 1, | 25 | | 1994.
Beginning April 1, 1998, an ordinance or
resolution | 26 | | imposing or
discontinuing the tax hereunder or effecting a |
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| 1 | | change in the rate thereof shall
either (i) be adopted and a | 2 | | certified copy thereof filed with the Department on
or
before | 3 | | the first day of April, whereupon the Department shall proceed | 4 | | to
administer and enforce this Section as of the first day of | 5 | | July next following
the adoption and filing; or (ii) be adopted | 6 | | and a certified copy thereof filed
with the Department on or | 7 | | before the first day of October, whereupon the
Department shall | 8 | | proceed to administer and enforce this Section as of the first
| 9 | | day of January next following the adoption and filing. | 10 | | Notwithstanding the provisions of this Section, an ordinance | 11 | | passed by the City of Springfield in calendar year 2018 | 12 | | effecting a change in the rate of a tax imposed under this | 13 | | Section shall be adopted and a certified
copy thereof filed | 14 | | with the Department on or before April 1, 2018,
whereupon the | 15 | | Department shall proceed to administer and enforce the change | 16 | | as of May 1, 2018.
| 17 | | Any unobligated balance remaining in the Municipal | 18 | | Retailers' Occupation
Tax Fund on December 31, 1989, which fund | 19 | | was abolished by Public Act
85-1135, and all receipts of | 20 | | municipal tax as a result of audits of
liability periods prior | 21 | | to January 1, 1990, shall be paid into the Local
Government Tax | 22 | | Fund, for distribution as provided by this Section prior to
the | 23 | | enactment of Public Act 85-1135. All receipts of municipal tax | 24 | | as a
result of an assessment not arising from an audit, for | 25 | | liability periods
prior to January 1, 1990, shall be paid into | 26 | | the Local Government Tax Fund
for distribution before July 1, |
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| 1 | | 1990, as provided by this Section prior to
the enactment of | 2 | | Public Act 85-1135, and on and after July 1, 1990, all
such | 3 | | receipts shall be distributed as provided in Section 6z-18 of | 4 | | the
State Finance Act.
| 5 | | As used in this Section, "municipal" and "municipality" | 6 | | means a city,
village or incorporated town, including an | 7 | | incorporated town which has
superseded a civil township.
| 8 | | This Section shall be known and may be cited as the Home | 9 | | Rule Municipal
Service Occupation Tax Act.
| 10 | | (Source: P.A. 100-23, eff. 7-6-17.)
| 11 | | (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
| 12 | | Sec. 8-11-6. Home Rule Municipal Use Tax Act.
| 13 | | (a) The corporate authorities of a home rule municipality | 14 | | may
impose a tax upon the privilege of using, in such | 15 | | municipality, any item of
tangible personal property which is | 16 | | purchased at retail from a retailer, and
which is titled or | 17 | | registered at a location within the corporate limits of
such | 18 | | home rule municipality with an agency of this State's | 19 | | government, at a
rate which is an increment of 1/4% and based | 20 | | on the selling price of such
tangible personal property, as | 21 | | "selling price" is defined in the Use Tax
Act. In home rule | 22 | | municipalities with less than 2,000,000 inhabitants, the
tax | 23 | | shall be collected by the municipality imposing the tax from | 24 | | persons
whose Illinois address for titling or registration | 25 | | purposes is given as
being in such municipality.
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| 1 | | (b) In home rule municipalities with 2,000,000 or more | 2 | | inhabitants, the
corporate authorities of the municipality may | 3 | | additionally impose a tax
beginning July 1, 1991 upon the | 4 | | privilege of using in the
municipality, any item of tangible | 5 | | personal property, other than tangible
personal property | 6 | | titled or registered with an agency of the State's
government, | 7 | | that is purchased at retail from a retailer located outside the
| 8 | | corporate limits of the municipality, at a rate that is an | 9 | | increment of
1/4% not to exceed 1% and based on the selling | 10 | | price of the tangible
personal property, as "selling price" is | 11 | | defined in the Use Tax Act. Such
tax shall be collected from | 12 | | the purchaser either by the municipality imposing
such tax or | 13 | | by the Department of Revenue pursuant to an agreement between | 14 | | the
Department and the municipality.
| 15 | | To prevent multiple home rule taxation, the use in a home | 16 | | rule
municipality of tangible personal property that is | 17 | | acquired outside the
municipality and caused to be brought into | 18 | | the municipality by a person who
has already paid a home rule | 19 | | municipal tax in another municipality in
respect to the sale, | 20 | | purchase, or use of that property, shall be exempt to
the | 21 | | extent of the amount of the tax properly due and paid in the | 22 | | other home
rule municipality.
| 23 | | (c) If a municipality having 2,000,000 or more inhabitants | 24 | | imposes the
tax authorized by subsection (a),
then the tax | 25 | | shall be collected by the Illinois Department of Revenue when
| 26 | | the property is purchased at retail from a retailer in the |
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| 1 | | county in which
the home rule municipality imposing the tax is | 2 | | located, and in all
contiguous counties. The tax shall be | 3 | | remitted to the State, or an
exemption determination must be | 4 | | obtained from the Department before the
title or certificate of | 5 | | registration for the property may be issued. The
tax or proof | 6 | | of exemption may be transmitted to the Department by way of
the | 7 | | State agency with which, or State officer with whom, the | 8 | | tangible
personal property must be titled or registered if the | 9 | | Department and that
agency or State officer determine that this | 10 | | procedure will expedite the
processing of applications for | 11 | | title or registration.
| 12 | | The Department shall have full power to administer and | 13 | | enforce this
Section to collect all taxes, penalties and | 14 | | interest due hereunder, to
dispose of taxes, penalties and | 15 | | interest so collected in the manner
hereinafter provided, and | 16 | | determine all rights to credit memoranda or
refunds arising on | 17 | | account of the erroneous payment of tax, penalty or
interest | 18 | | hereunder. In the administration of and compliance with this
| 19 | | Section the Department and persons who are subject to this | 20 | | Section shall
have the same rights, remedies, privileges, | 21 | | immunities, powers and duties,
and be subject to the same | 22 | | conditions, restrictions, limitations, penalties
and | 23 | | definitions of terms, and employ the same modes of procedure as | 24 | | are
prescribed in Sections 2 (except the definition of | 25 | | "retailer maintaining a
place of business in this State"), 3 | 26 | | (except provisions pertaining to the
State rate of tax, and |
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| 1 | | except provisions concerning collection or refunding
of the tax | 2 | | by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22 of the | 3 | | Use Tax Act, which are not inconsistent with
this Section, as | 4 | | fully as if provisions contained in those Sections of the
Use | 5 | | Tax Act were set forth herein.
| 6 | | Whenever the Department determines that a refund shall be | 7 | | made under this
Section to a claimant instead of issuing a | 8 | | credit memorandum, the
Department shall notify the State | 9 | | Comptroller, who shall cause the order to
be drawn for the | 10 | | amount specified, and to the person named, in such
notification | 11 | | from the Department. Such refund shall be paid by the State
| 12 | | Treasurer out of the home rule municipal retailers' occupation | 13 | | tax fund.
| 14 | | The Department shall forthwith pay over to the State | 15 | | Treasurer, ex
officio, as trustee, all taxes, penalties and | 16 | | interest collected hereunder.
On or before the 25th day of each | 17 | | calendar month, the Department shall
prepare and certify to the | 18 | | State Comptroller the disbursement of stated
sums of money to | 19 | | named municipalities, the municipality in each instance to
be | 20 | | that municipality from which the Department during the second | 21 | | preceding
calendar month, collected municipal use tax from any | 22 | | person whose Illinois
address for titling or registration | 23 | | purposes is given as being in such
municipality. The amount to | 24 | | be paid to each
municipality shall be the amount (not including | 25 | | credit memoranda) collected
hereunder during the second | 26 | | preceding calendar month by the Department, and
not including |
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| 1 | | an amount equal to the amount of refunds made during the
second | 2 | | preceding calendar month by the Department on behalf of such
| 3 | | municipality, less 2% of the balance, which sum shall be | 4 | | retained by the State Treasurer to cover the costs incurred by | 5 | | the Department in administering and enforcing the provisions of | 6 | | this Section. The Department, at the time of each monthly | 7 | | disbursement to the municipalities, shall prepare and certify | 8 | | to the Comptroller the amount so retained by the State | 9 | | Treasurer, which shall be transferred into the Tax Compliance | 10 | | and Administration Fund. Within 10 days
after receipt by the | 11 | | State Comptroller of the disbursement certification to
the | 12 | | municipalities provided for in this Section to be given to the | 13 | | State
Comptroller by the Department,
the State Comptroller | 14 | | shall cause the orders to be drawn for the respective
amounts | 15 | | in accordance with the directions contained in that | 16 | | certification.
| 17 | | Any ordinance imposing or discontinuing any tax to be | 18 | | collected and
enforced by the Department under this Section | 19 | | shall
be adopted and a certified copy thereof filed with the | 20 | | Department on or
before October 1, whereupon the Department of | 21 | | Revenue shall proceed to
administer and enforce this Section on | 22 | | behalf of the municipalities as of
January 1 next following | 23 | | such adoption and filing. Beginning April 1, 1998,
any | 24 | | ordinance imposing or discontinuing any tax to be collected and | 25 | | enforced
by the Department under this Section shall either (i) | 26 | | be adopted and a
certified copy thereof filed with the |
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| 1 | | Department on or before April 1,
whereupon the Department of | 2 | | Revenue shall proceed to administer and enforce
this Section on | 3 | | behalf of the municipalities as of July 1 next following the
| 4 | | adoption and filing; or (ii) be adopted and a certified copy | 5 | | thereof filed
with the Department on or before October 1, | 6 | | whereupon the Department of
Revenue shall proceed to administer | 7 | | and enforce this Section on behalf of
the municipalities as of | 8 | | January 1 next following the adoption and filing. | 9 | | Notwithstanding the provisions of this Section, an ordinance | 10 | | passed by the City of Springfield in calendar year 2018 | 11 | | effecting a change in the rate of a tax imposed under this | 12 | | Section shall be adopted and a certified
copy thereof filed | 13 | | with the Department on or before April 1, 2018,
whereupon the | 14 | | Department shall proceed to administer and enforce the change | 15 | | as of May 1, 2018.
| 16 | | Nothing in this subsection (c) shall prevent a home rule | 17 | | municipality
from collecting the tax pursuant to subsection (a) | 18 | | in any situation where
such tax is not collected by the | 19 | | Department of Revenue under this subsection
(c).
| 20 | | (d) Any unobligated balance remaining in the Municipal | 21 | | Retailers'
Occupation Tax Fund on December 31, 1989, which fund | 22 | | was abolished by Public
Act 85-1135, and all receipts of | 23 | | municipal tax as a result of audits of
liability periods prior | 24 | | to January 1, 1990, shall be paid into the Local
Government Tax | 25 | | Fund, for distribution as provided by this Section prior to
the | 26 | | enactment of Public Act 85-1135. All receipts of municipal tax |
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| 1 | | as a
result of an assessment not arising from an audit, for | 2 | | liability periods
prior to January 1, 1990, shall be paid into | 3 | | the Local Government Tax Fund
for distribution before July 1, | 4 | | 1990, as provided by this Section prior to
the enactment of | 5 | | Public Act 85-1135, and on and after July 1, 1990, all
such | 6 | | receipts shall be distributed as provided in Section 6z-18 of | 7 | | the
State Finance Act.
| 8 | | (e) As used in this Section, "Municipal" and "Municipality" | 9 | | means a city,
village or incorporated town, including an | 10 | | incorporated town which has
superseded a civil township.
| 11 | | (f) This Section shall be known and may be cited as the | 12 | | Home Rule
Municipal Use Tax Act.
| 13 | | (Source: P.A. 98-1049, eff. 8-25-14.)
| 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law.".
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