Full Text of HB0155 101st General Assembly
HB0155 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB0155 Introduced , by Rep. Anthony DeLuca SYNOPSIS AS INTRODUCED: |
| 65 ILCS 5/8-11-1.1 | from Ch. 24, par. 8-11-1.1 | 65 ILCS 5/8-11-1.2 | from Ch. 24, par. 8-11-1.2 | 65 ILCS 5/8-11-1.3 | from Ch. 24, par. 8-11-1.3 | 65 ILCS 5/8-11-1.4 | from Ch. 24, par. 8-11-1.4 | 65 ILCS 5/8-11-1.5 | from Ch. 24, par. 8-11-1.5 |
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Amends the Illinois Municipal Code. Provides that the rate of tax under the Non-Home Rule
Municipal Retailers' Occupation Tax Act, the Non-Home Rule Municipal
Service Occupation Tax Act, and the Non-Home Rule
Municipal Use Tax Act may not exceed 2% (currently, 1%). Provides that the rate of tax that may be imposed for municipal operations may not exceed 1%. With respect to the Non-Home Rule
Municipal Retailers' Occupation Tax Act, the Non-Home Rule Municipal
Service Occupation Tax Act, and the Non-Home Rule
Municipal Use Tax Act, provides that the term "public infrastructure" includes the acquisition, repair, and maintenance of public safety equipment. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 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 8-11-1.1, 8-11-1.2, 8-11-1.3, 8-11-1.4, and | 6 | | 8-11-1.5 as follows: | 7 | | (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1) | 8 | | Sec. 8-11-1.1. Non-home rule municipalities; imposition of | 9 | | taxes. | 10 | | (a) The corporate authorities of a non-home rule
| 11 | | municipality
may, upon approval of the electors of the | 12 | | municipality pursuant to
subsection (b) of this Section, impose | 13 | | by ordinance or resolution the tax authorized in Sections | 14 | | 8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act. | 15 | | (b) The corporate authorities of the municipality may by | 16 | | ordinance or
resolution call for the submission to the electors | 17 | | of the municipality
the question of whether the municipality | 18 | | shall impose such tax or increase the rate of such tax . Such
| 19 | | question shall be certified by the municipal clerk to the | 20 | | election
authority in accordance with Section 28-5 of the | 21 | | Election Code and shall be
in a form in accordance with Section | 22 | | 16-7 of the Election Code. | 23 | | Notwithstanding any provision of law to the contrary, if |
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| 1 | | the proceeds of the tax may be used for municipal operations | 2 | | pursuant to Section 8-11-1.3, 8-11-1.4, or 8-11-1.5, then the | 3 | | election authority must submit the question in substantially | 4 | | the following form: | 5 | | Shall the corporate authorities of the municipality be | 6 | | authorized to levy a tax at a rate of (rate)% for | 7 | | expenditures on municipal operations, expenditures on | 8 | | public infrastructure, or property tax relief? | 9 | | If a majority of the electors in the municipality voting | 10 | | upon the
question vote in the affirmative, such tax shall be | 11 | | imposed. | 12 | | Until January 1, 1992, an ordinance or resolution imposing | 13 | | the tax of not more than 1% hereunder or
discontinuing the same | 14 | | shall be adopted and a certified copy thereof,
together with a | 15 | | certification that the ordinance or resolution received
| 16 | | referendum approval in the case of the imposition of such tax, | 17 | | filed with
the Department of Revenue, on or before the first | 18 | | day of June, whereupon
the Department shall proceed to | 19 | | administer and enforce
the additional tax or to discontinue the | 20 | | tax, as the case may be, as of the
first day of September next | 21 | | following such adoption and filing. | 22 | | Beginning January 1, 1992 and through December 31, 1992, an | 23 | | ordinance or resolution imposing
or discontinuing the tax | 24 | | hereunder shall be adopted and a certified copy
thereof filed | 25 | | with the Department on or before the first day of July,
| 26 | | whereupon the Department shall proceed to administer and |
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| 1 | | enforce this
Section as of the first day of October next | 2 | | following such adoption and filing. | 3 | | Beginning January 1, 1993, and through September 30, 2002, | 4 | | an ordinance or resolution imposing or
discontinuing the tax | 5 | | hereunder shall be adopted and a certified copy
thereof filed | 6 | | with the Department on or before the first day of October,
| 7 | | whereupon the Department shall proceed to administer and | 8 | | enforce this
Section as of the first day of January next | 9 | | following such adoption and filing. | 10 | | Beginning October 1, 2002, and through December 31, 2013, | 11 | | an ordinance or resolution imposing or
discontinuing the tax
| 12 | | under this Section or effecting a change in the rate of tax | 13 | | must either (i) be
adopted
and a
certified copy of the | 14 | | ordinance or resolution filed with the Department on or
before | 15 | | the first day
of April,
whereupon the Department shall proceed | 16 | | to administer and enforce this Section
as of the
first day of | 17 | | July next following the adoption and filing; or (ii) be adopted
| 18 | | and a certified
copy of the ordinance or resolution filed with | 19 | | the Department on or before the
first day
of October,
whereupon | 20 | | the Department shall proceed to administer and enforce this | 21 | | Section
as of the
first day of January next following the | 22 | | adoption and filing. | 23 | | Beginning January 1, 2014, if an ordinance or resolution | 24 | | imposing the tax under this Section, discontinuing the tax | 25 | | under this Section, or effecting a change in the rate of tax | 26 | | under this Section is adopted, a certified copy thereof, |
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| 1 | | together with a certification that the ordinance or resolution | 2 | | received referendum approval in the case of the imposition of | 3 | | or increase in the rate of such tax, shall be filed with the | 4 | | Department of Revenue, either (i) on or before the first day of | 5 | | May, whereupon the Department shall proceed to administer and | 6 | | enforce this Section as of the first day of July next following | 7 | | the adoption and filing; or (ii) on or before the first day of | 8 | | October, whereupon the Department shall proceed to administer | 9 | | and enforce this Section as of the first day of January next | 10 | | following the adoption and filing. | 11 | | Notwithstanding any provision in this Section to the | 12 | | contrary, if, in a non-home rule municipality with more than | 13 | | 150,000 but fewer than 200,000 inhabitants, as determined by | 14 | | the last preceding federal decennial census, an ordinance or | 15 | | resolution under this Section imposes or discontinues a tax or | 16 | | changes the tax rate as of July 1, 2007, then that ordinance or | 17 | | resolution, together with a certification that the
ordinance or | 18 | | resolution received referendum approval in the case of the
| 19 | | imposition of the tax, must be adopted and a certified copy of | 20 | | that ordinance or resolution must be filed with the Department | 21 | | on or before May 15, 2007, whereupon the Department shall | 22 | | proceed to administer and enforce this Section as of July 1, | 23 | | 2007.
| 24 | | Notwithstanding any provision in this Section to the | 25 | | contrary, if, in a non-home rule municipality with more than | 26 | | 6,500 but fewer than 7,000 inhabitants, as determined by the |
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| 1 | | last preceding federal decennial census, an ordinance or | 2 | | resolution under this Section imposes or discontinues a tax or | 3 | | changes the tax rate on or before May 20, 2009, then that | 4 | | ordinance or resolution, together with a certification that the
| 5 | | ordinance or resolution received referendum approval in the | 6 | | case of the
imposition of the tax, must be adopted and a | 7 | | certified copy of that ordinance or resolution must be filed | 8 | | with the Department on or before May 20, 2009, whereupon the | 9 | | Department shall proceed to administer and enforce this Section | 10 | | as of July 1, 2009. | 11 | | A non-home rule municipality may file
a
certified copy of | 12 | | an ordinance or resolution, with a certification that the
| 13 | | ordinance or resolution received referendum approval in the | 14 | | case of the
imposition of the tax, with the
Department of | 15 | | Revenue, as required under this Section, only after October 2,
| 16 | | 2000. | 17 | | The tax authorized by this Section may not be more than 2% | 18 | | 1% and
may be imposed only in 1/4% increments. It is the intent | 19 | | of the General Assembly that the rate of tax that may be | 20 | | imposed for municipal operations may not exceed 1%; therefore, | 21 | | notwithstanding any other provision of law, if the tax under | 22 | | this Section is imposed at a rate of more than 1%, then, | 23 | | beginning with the first disbursement to occur on or after the | 24 | | effective date of the increase, the total amount that may be | 25 | | used for municipal operations may not exceed the total amount | 26 | | of the proceeds disbursed to the municipality under Sections |
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| 1 | | 8-11-1.3, 8-11-1.4, and 8-11-1.5, multiplied by a fraction | 2 | | having a numerator of 1 and a denominator of the rate of tax. | 3 | | (Source: P.A. 98-584, eff. 8-27-13.)
| 4 | | (65 ILCS 5/8-11-1.2) (from Ch. 24, par. 8-11-1.2)
| 5 | | Sec. 8-11-1.2. Definition. As used in Sections 8-11-1.3,
| 6 | | 8-11-1.4 and 8-11-1.5 of this Act:
| 7 | | (a) "Public infrastructure" means
municipal roads and | 8 | | streets, access roads, bridges, and sidewalks; waste
disposal | 9 | | systems; the acquisition, repair, and maintenance of public | 10 | | safety equipment; and water and sewer line extensions, water | 11 | | distribution
and purification facilities, storm water drainage | 12 | | and retention facilities,
and sewage treatment facilities.
For | 13 | | purposes of referenda authorizing the
imposition of taxes by | 14 | | the City of DuQuoin under Sections 8-11-1.3, 8-11-1.4,
and | 15 | | 8-11-1.5 of this
Act
that are approved in November, 2002, or | 16 | | for purposes of referenda authorizing the
imposition of taxes | 17 | | by the Village of Forsyth under Sections 8-11-1.3, 8-11-1.4,
| 18 | | and 8-11-1.5 of this
Act
that are approved after the effective | 19 | | date of this amendatory Act of the 94th General Assembly,
| 20 | | "public infrastructure" shall also
include public schools.
| 21 | | (a-5) For the purposes of this Section, "public safety | 22 | | equipment" means firefighting, police, rescue, transportation, | 23 | | or communications equipment used by police departments, fire | 24 | | departments, or other first responders, including, but not | 25 | | limited to, police vehicles, fire trucks, surveillance |
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| 1 | | equipment, and body cameras. | 2 | | (b) "Property tax relief" means the action of a | 3 | | municipality to reduce the
levy for real estate taxes or avoid | 4 | | an increase in the levy for real estate
taxes that would | 5 | | otherwise have been required. Property tax relief or the
| 6 | | avoidance of property tax must uniformly apply to all classes | 7 | | of property.
| 8 | | (Source: P.A. 94-1078, eff. 1-9-07; 95-331, eff. 8-21-07.)
| 9 | | (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
| 10 | | Sec. 8-11-1.3. Non-Home Rule Municipal Retailers' | 11 | | Occupation Tax Act. The corporate authorities of a non-home | 12 | | rule municipality may impose
a tax upon all persons engaged in | 13 | | the business of selling tangible
personal property, other than | 14 | | on an item of tangible personal property
which is titled and | 15 | | registered by an agency of this State's Government,
at retail | 16 | | in the municipality for expenditure on
public infrastructure or | 17 | | for property tax relief or both as defined in
Section 8-11-1.2 | 18 | | if approved by
referendum as provided in Section 8-11-1.1, of | 19 | | the gross receipts from such
sales made in the course of such | 20 | | business.
If the tax is approved by referendum on or after July | 21 | | 14, 2010 (the effective date of Public Act 96-1057), the | 22 | | corporate authorities of a non-home rule municipality may, | 23 | | until December 31, 2020, use the proceeds of the tax for | 24 | | expenditure on municipal operations, in addition to or in lieu | 25 | | of any expenditure on public infrastructure or for property tax |
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| 1 | | relief. The tax imposed may not be more than 2% 1% and may be | 2 | | imposed only in
1/4% increments. It is the intent of the | 3 | | General Assembly that the rate of tax that may be imposed for | 4 | | municipal operations may not exceed 1%; therefore, | 5 | | notwithstanding any other provision of law, if the tax under | 6 | | this Section is imposed at a rate of more than 1%, then, | 7 | | beginning with the first disbursement to occur on or after the | 8 | | effective date of the increase, the total amount that may be | 9 | | used for municipal operations may not exceed the total amount | 10 | | of the proceeds disbursed to the municipality under this | 11 | | Section, Section 8-11-1.4, and Section 8-11-1.5, multiplied by | 12 | | a fraction having a numerator of 1 and a denominator of the | 13 | | rate of tax. The tax may not be imposed on the sale of food for | 14 | | human
consumption that is
to be consumed off the premises where | 15 | | it is sold (other than alcoholic
beverages, soft drinks, and | 16 | | food that has been prepared for immediate
consumption) and | 17 | | prescription and nonprescription medicines, drugs, medical
| 18 | | appliances, and insulin, urine testing materials, syringes, | 19 | | and needles used by
diabetics.
The tax imposed by a
| 20 | | municipality pursuant to this Section and all civil penalties | 21 | | that may be
assessed as an incident thereof shall be collected | 22 | | and enforced by the
State Department of Revenue. The | 23 | | certificate of registration which is
issued by the Department | 24 | | to a retailer under the Retailers' Occupation Tax
Act shall | 25 | | permit such retailer to engage in a business which is taxable
| 26 | | under any ordinance or resolution enacted pursuant to
this |
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| 1 | | Section without registering separately with the Department | 2 | | under
such ordinance or resolution or under this Section. The | 3 | | Department
shall have full power to administer and enforce this | 4 | | Section; to collect
all taxes and penalties due hereunder; to | 5 | | dispose of taxes and penalties
so collected in the manner | 6 | | hereinafter provided, and to determine all
rights to credit | 7 | | memoranda, arising on account of the erroneous payment
of tax | 8 | | or penalty hereunder. In the administration of, and compliance
| 9 | | with, this Section, the Department and persons who are subject | 10 | | to this
Section shall have the same rights, remedies, | 11 | | privileges, immunities,
powers and duties, and be subject to | 12 | | the same conditions, restrictions,
limitations, penalties and | 13 | | definitions of terms, and employ the same
modes of procedure, | 14 | | as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
1f, 1i, 1j, | 15 | | 2 through 2-65 (in respect to all provisions therein other than
| 16 | | the State rate of tax), 2c, 3 (except as to the disposition of | 17 | | taxes and
penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, | 18 | | 5g, 5h, 5i, 5j, 5k, 5l,
6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 | 19 | | and 13 of the Retailers'
Occupation Tax Act and Section 3-7 of | 20 | | the Uniform Penalty and Interest
Act as fully as if those | 21 | | provisions were set forth herein.
| 22 | | No municipality may impose a tax under this Section unless | 23 | | the municipality
also imposes a tax at the same rate under | 24 | | Section 8-11-1.4 of this Code.
| 25 | | Persons subject to any tax imposed pursuant to the | 26 | | authority granted
in this Section may reimburse themselves for |
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| 1 | | their seller's tax
liability hereunder by separately stating | 2 | | such tax as an additional
charge, which charge may be stated in | 3 | | combination, in a single amount,
with State tax which sellers | 4 | | are required to collect under the Use Tax
Act, pursuant to such | 5 | | bracket schedules as the Department may prescribe.
| 6 | | Whenever the Department determines that a refund should 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 non-home rule municipal retailers'
| 13 | | occupation tax fund.
| 14 | | The Department shall forthwith pay over to the State | 15 | | Treasurer, ex
officio, as trustee, all taxes and penalties | 16 | | collected hereunder. | 17 | | As soon as possible after the first day of each month, | 18 | | beginning January 1, 2011, upon certification of the Department | 19 | | of Revenue, the Comptroller shall order transferred, and the | 20 | | Treasurer shall transfer, to the STAR Bonds Revenue Fund the | 21 | | local sales tax increment, as defined in the Innovation | 22 | | Development and Economy Act, collected under this Section | 23 | | during the second preceding calendar month for sales within a | 24 | | STAR bond district. | 25 | | After the monthly transfer to the STAR Bonds Revenue Fund, | 26 | | on or
before the 25th day of each calendar month, the |
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| 1 | | Department shall
prepare and certify to the Comptroller the | 2 | | disbursement of stated sums
of money to named municipalities, | 3 | | the municipalities to be those from
which retailers have paid | 4 | | taxes or penalties hereunder to the Department
during the | 5 | | second preceding calendar month. The amount to be paid to each
| 6 | | municipality shall be the amount (not including credit | 7 | | memoranda) collected
hereunder during the second preceding | 8 | | calendar month by the Department plus
an amount the Department | 9 | | determines is necessary to offset any amounts
which were | 10 | | erroneously paid to a different taxing body, and not including
| 11 | | an amount equal to the amount of refunds made during the second | 12 | | preceding
calendar month by the Department on behalf of such | 13 | | municipality, and not
including any amount which the Department | 14 | | determines is necessary to offset
any amounts which were | 15 | | payable to a different taxing body but were
erroneously paid to | 16 | | the municipality, and not including any amounts that are | 17 | | transferred to the STAR Bonds Revenue Fund, less 1.5% of the | 18 | | remainder, which the Department shall transfer into the Tax | 19 | | Compliance and Administration Fund. The Department, at the time | 20 | | of each monthly disbursement to the municipalities, shall | 21 | | prepare and certify to the State Comptroller the amount to be | 22 | | transferred into the Tax Compliance and Administration Fund | 23 | | under this Section. Within 10 days after receipt, by the
| 24 | | Comptroller, of the disbursement certification to the | 25 | | municipalities and the Tax Compliance and Administration Fund
| 26 | | provided for in this Section to be given to the Comptroller by |
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| 1 | | the
Department, the Comptroller shall cause the orders to be | 2 | | drawn for the
respective amounts in accordance with the | 3 | | directions contained in such
certification.
| 4 | | For the purpose of determining the local governmental unit | 5 | | whose tax
is applicable, a retail sale, by a producer of coal | 6 | | or other mineral
mined in Illinois, is a sale at retail at the | 7 | | place where the coal or
other mineral mined in Illinois is | 8 | | extracted from the earth. This
paragraph does not apply to coal | 9 | | or other mineral when it is delivered
or shipped by the seller | 10 | | to the purchaser at a point outside Illinois so
that the sale | 11 | | is exempt under the Federal Constitution as a sale in
| 12 | | interstate or foreign commerce.
| 13 | | Nothing in this Section shall be construed to authorize a
| 14 | | municipality to impose a tax upon the privilege of engaging in | 15 | | any
business which under the constitution of the United States | 16 | | may not be
made the subject of taxation by this State.
| 17 | | When certifying the amount of a monthly disbursement to a | 18 | | municipality
under this Section, the Department shall increase | 19 | | or decrease such amount
by an amount necessary to offset any | 20 | | misallocation of previous
disbursements. The offset amount | 21 | | shall be the amount erroneously disbursed
within the previous 6 | 22 | | months from the time a misallocation is discovered.
| 23 | | The Department of Revenue shall implement this amendatory | 24 | | Act of the 91st
General Assembly so as to collect the tax on | 25 | | and after January 1, 2002.
| 26 | | As used in this Section, "municipal" and "municipality" |
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| 1 | | means a city,
village or incorporated town, including an | 2 | | incorporated town which has
superseded a civil township.
| 3 | | This Section shall be known and may be cited as the | 4 | | "Non-Home Rule
Municipal Retailers' Occupation Tax Act".
| 5 | | (Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17; | 6 | | 100-587, eff. 6-4-18.)
| 7 | | (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
| 8 | | Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation | 9 | | Tax Act. The
corporate authorities of a non-home rule | 10 | | municipality may impose a
tax upon all persons engaged, in such | 11 | | municipality, in the business of
making sales of service for | 12 | | expenditure on
public infrastructure or for property tax relief | 13 | | or both as defined in
Section 8-11-1.2 if approved by
| 14 | | referendum as provided in Section 8-11-1.1, of the selling | 15 | | price of
all tangible personal property transferred by such | 16 | | servicemen either in
the form of tangible personal property or | 17 | | in the form of real estate as
an incident to a sale of service.
| 18 | | If the tax is approved by referendum on or after July 14, 2010 | 19 | | (the effective date of Public Act 96-1057), the corporate | 20 | | authorities of a non-home rule municipality may, until December | 21 | | 31, 2020, use the proceeds of the tax for expenditure on | 22 | | municipal operations, in addition to or in lieu of any | 23 | | expenditure on public infrastructure or for property tax | 24 | | relief. The tax imposed may not be more than 2% 1% and may be | 25 | | imposed only in
1/4% increments. It is the intent of the |
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| 1 | | General Assembly that the rate of tax that may be imposed for | 2 | | municipal operations may not exceed 1%; therefore, | 3 | | notwithstanding any other provision of law, if the tax under | 4 | | this Section is imposed at a rate of more than 1%, then, | 5 | | beginning with the first disbursement to occur on or after the | 6 | | effective date of the increase, the total amount that may be | 7 | | used for municipal operations may not exceed the total amount | 8 | | of the proceeds disbursed to the municipality under this | 9 | | Section, Section 8-11-1.3, and Section 8-11-1.5, multiplied by | 10 | | a fraction having a numerator of 1 and a denominator of the | 11 | | rate of tax. The tax may not be imposed on the sale of food for | 12 | | human
consumption that is
to be consumed off the premises where | 13 | | it is sold (other than alcoholic
beverages, soft drinks, and | 14 | | food that has been prepared for immediate
consumption) and | 15 | | prescription and nonprescription medicines, drugs, medical
| 16 | | appliances, and insulin, urine testing materials, syringes, | 17 | | and needles used by
diabetics.
The tax imposed by a | 18 | | municipality
pursuant to this Section and all civil penalties | 19 | | that may be assessed as
an incident thereof shall be collected | 20 | | and enforced by the State
Department of Revenue. The | 21 | | certificate of registration which is issued
by the Department | 22 | | to a retailer under the Retailers' Occupation Tax
Act or under | 23 | | the Service Occupation Tax Act shall permit
such registrant to | 24 | | engage in a business which is taxable under any
ordinance or | 25 | | resolution enacted pursuant to this Section without
| 26 | | registering separately with the Department under such |
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| 1 | | ordinance or
resolution or under this Section. The Department | 2 | | shall have full power
to administer and enforce this Section; | 3 | | to collect all taxes and
penalties due hereunder; to dispose of | 4 | | taxes and penalties so collected
in the manner hereinafter | 5 | | provided, and to determine all rights to
credit memoranda | 6 | | arising on account of the erroneous payment of tax or
penalty | 7 | | hereunder. In the administration of, and compliance with, this
| 8 | | Section the Department and persons who are subject to this | 9 | | Section
shall have the same rights, remedies, privileges, | 10 | | immunities, powers and
duties, and be subject to the same | 11 | | conditions, restrictions, limitations,
penalties and | 12 | | definitions of terms, and employ the same modes of procedure,
| 13 | | as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in | 14 | | respect to
all provisions therein other than the State rate of | 15 | | tax), 4 (except that
the reference to the State shall be to the | 16 | | taxing municipality), 5, 7, 8
(except that the jurisdiction to | 17 | | which the tax shall be a debt to the
extent indicated in that | 18 | | Section 8 shall be the taxing municipality), 9
(except as to | 19 | | the disposition of taxes and penalties collected, and except
| 20 | | that the returned merchandise credit for this municipal tax may | 21 | | not be
taken against any State tax), 10, 11, 12 (except the | 22 | | reference therein to
Section 2b of the Retailers' Occupation | 23 | | Tax Act), 13 (except that any
reference to the State shall mean | 24 | | the taxing municipality), the first
paragraph of Section 15, | 25 | | 16, 17, 18, 19 and 20 of the Service Occupation
Tax Act and | 26 | | Section 3-7 of the Uniform Penalty and Interest Act, as fully
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| 1 | | as if those provisions were set forth herein.
| 2 | | No municipality may impose a tax under this Section unless | 3 | | the municipality
also imposes a tax at the same rate under | 4 | | Section 8-11-1.3 of this Code.
| 5 | | Persons subject to any tax imposed pursuant to the | 6 | | authority granted
in this Section may reimburse themselves for | 7 | | their serviceman's tax
liability hereunder by separately | 8 | | stating such tax as an additional
charge, which charge may be | 9 | | stated in combination, in a single amount,
with State tax which | 10 | | servicemen are authorized to collect under the
Service Use Tax | 11 | | Act, pursuant to such bracket schedules as the
Department may | 12 | | prescribe.
| 13 | | Whenever the Department determines that a refund should be | 14 | | made under
this Section to a claimant instead of issuing credit | 15 | | memorandum, the
Department shall notify the State Comptroller, | 16 | | who shall cause the
order to be drawn for the amount specified, | 17 | | and to the person named,
in such notification from the | 18 | | Department. Such refund shall be paid by
the State Treasurer | 19 | | out of the municipal retailers' occupation tax fund.
| 20 | | The Department shall forthwith pay over to the State | 21 | | Treasurer,
ex officio, as trustee, all taxes and penalties | 22 | | collected hereunder. | 23 | | As soon as possible after the first day of each month, | 24 | | beginning January 1, 2011, upon certification of the Department | 25 | | of Revenue, the Comptroller shall order transferred, and the | 26 | | Treasurer shall transfer, to the STAR Bonds Revenue Fund the |
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| 1 | | local sales tax increment, as defined in the Innovation | 2 | | Development and Economy Act, collected under this Section | 3 | | during the second preceding calendar month for sales within a | 4 | | STAR bond district. | 5 | | After the monthly transfer to the STAR Bonds Revenue Fund, | 6 | | on
or before the 25th day of each calendar month, the | 7 | | Department shall
prepare and certify to the Comptroller the | 8 | | disbursement of stated sums
of money to named municipalities, | 9 | | the municipalities to be those from
which suppliers and | 10 | | servicemen have paid taxes or penalties hereunder to
the | 11 | | Department during the second preceding calendar month. The | 12 | | amount
to be paid to each municipality shall be the amount (not | 13 | | including credit
memoranda) collected hereunder during the | 14 | | second preceding calendar
month by the Department, and not | 15 | | including an amount equal to the amount
of refunds made during | 16 | | the second preceding calendar month by the
Department on behalf | 17 | | of such municipality, and not including any amounts that are | 18 | | transferred to the STAR Bonds Revenue Fund, less 1.5% of the | 19 | | remainder, which the Department shall transfer into the Tax | 20 | | Compliance and Administration Fund. The Department, at the time | 21 | | of each monthly disbursement to the municipalities, shall | 22 | | prepare and certify to the State Comptroller the amount to be | 23 | | transferred into the Tax Compliance and Administration Fund | 24 | | under this Section. Within 10 days
after receipt, by the | 25 | | Comptroller, of the disbursement certification to
the | 26 | | municipalities, the General Revenue Fund, and the Tax |
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| 1 | | Compliance and Administration Fund provided for in this
Section | 2 | | to be given to the Comptroller by the Department, the
| 3 | | Comptroller shall cause the orders to be drawn for the | 4 | | respective
amounts in accordance with the directions contained | 5 | | in such
certification.
| 6 | | The Department of Revenue shall implement this amendatory | 7 | | Act of the 91st
General Assembly so as to collect the tax on | 8 | | and after January 1, 2002.
| 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 | | As used in this Section, "municipal" or "municipality" | 14 | | means or refers to
a city, village or incorporated town, | 15 | | including an incorporated town which
has superseded a civil | 16 | | township.
| 17 | | This Section shall be known and may be cited as the | 18 | | "Non-Home Rule Municipal
Service Occupation Tax Act".
| 19 | | (Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
| 20 | | (65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5)
| 21 | | Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The | 22 | | corporate
authorities of a non-home rule municipality may | 23 | | impose a
tax upon the privilege of using, in such municipality, | 24 | | any item of tangible
personal property which is purchased at | 25 | | retail from a retailer, and which is
titled or registered with |
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| 1 | | an agency of this State's government, based on the selling | 2 | | price of such tangible personal
property, as "selling price" is | 3 | | defined in the Use Tax Act, for expenditure
on public | 4 | | infrastructure or for property tax relief or both as defined in
| 5 | | Section 8-11-1.2, if approved by
referendum as provided in | 6 | | Section 8-11-1.1. If the tax is approved by referendum on or | 7 | | after the effective date of this amendatory Act of the 96th | 8 | | General Assembly, the corporate authorities of a non-home rule | 9 | | municipality may, until December 31, 2020, use the proceeds of | 10 | | the tax for expenditure on municipal operations, in addition to | 11 | | or in lieu of any expenditure on public infrastructure or for | 12 | | property tax relief. The tax imposed may not be more
than 2% 1% | 13 | | and may be imposed only in 1/4% increments. It is the intent of | 14 | | the General Assembly that the rate of tax that may be imposed | 15 | | for municipal operations may not exceed 1%; therefore, | 16 | | notwithstanding any other provision of law, if the tax under | 17 | | this Section is imposed at a rate of more than 1%, then, | 18 | | beginning with the first disbursement to occur on or after the | 19 | | effective date of the increase, the total amount that may be | 20 | | used for municipal operations may not exceed the total amount | 21 | | of the proceeds disbursed to the municipality under this | 22 | | Section, Section 8-11-1.3, and Section 8-11-1.4, multiplied by | 23 | | a fraction having a numerator of 1 and a denominator of the | 24 | | rate of tax. Such tax shall
be
collected from persons whose | 25 | | Illinois address for title or registration
purposes is given as | 26 | | being in such municipality. Such tax shall be
collected by the |
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| 1 | | municipality imposing such tax.
A non-home rule municipality | 2 | | may not
impose and collect the tax prior to January 1, 2002.
| 3 | | This Section shall be known and may be cited as the | 4 | | "Non-Home Rule
Municipal Use Tax Act".
| 5 | | (Source: P.A. 96-1057, eff. 7-14-10; 97-837, eff. 7-20-12.)
| 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law.
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