Full Text of HB0663 96th General Assembly
HB0663 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 HB0663
Introduced 02/06/09, by Rep. Paul D. Froehlich - Fred Crespo - Keith Farnham - Mark L. Walker SYNOPSIS AS INTRODUCED: |
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55 ILCS 5/5-1006 |
from Ch. 34, par. 5-1006 |
55 ILCS 5/5-1007 |
from Ch. 34, par. 5-1007 |
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Amends the Home Rule County Retailers' Occupation Tax Law and the Home Rule County Service Occupation Tax Law in the Counties Code. Provides that, if the tax exceeds 0.75% on the effective date of this amendatory Act, then 60 calendar days after that effective date, the rate reverts to 0.75% by operation of law. Requires referendum approval for a home rule county board to increase the tax rate above 0.75%. Specifies the referendum requirements. Preempts home rule powers. Effective immediately.
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FISCAL NOTE ACT MAY APPLY | |
HOME RULE NOTE ACT MAY APPLY |
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A BILL FOR
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HB0663 |
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LRB096 07903 RCE 18006 b |
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| AN ACT concerning local government.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Counties Code is amended by changing | 5 |
| Sections 5-1006 and 5-1007 as follows:
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| (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
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| Sec. 5-1006. Home Rule County Retailers' Occupation Tax | 8 |
| Law. Any county that is a home rule unit may impose
a tax upon | 9 |
| all persons engaged in the business of selling tangible
| 10 |
| personal property, other than an item of tangible personal | 11 |
| property titled
or registered with an agency of this State's | 12 |
| government, at retail in the
county on the gross receipts from | 13 |
| such sales made in the course of
their business. If imposed, | 14 |
| this tax shall only
be imposed in 1/4% increments. If the tax | 15 |
| exceeds 0.75% on the effective date of this amendatory Act of | 16 |
| the 96th General Assembly, then 60 calendar days after that | 17 |
| effective date, the rate reverts to 0.75% by operation of law. | 18 |
| If the county board proposes an increase that would cause this | 19 |
| tax to be imposed at any rate above 0.75%, then the tax may not | 20 |
| be levied until the question of levying the tax has been | 21 |
| submitted to the electors of the county at a regular election | 22 |
| and approved by a majority of the electors voting on the | 23 |
| question. After the adoption of a resolution by the county |
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HB0663 |
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LRB096 07903 RCE 18006 b |
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| board for the submission of the question to the electors of the | 2 |
| county, the board must certify the question to the proper | 3 |
| election authorities. The election authorities must submit the | 4 |
| question at an election in accordance with the Election Code. | 5 |
| An election authority must submit the question in | 6 |
| substantially the following form: | 7 |
| Shall the county board of (name of the county) be | 8 |
| authorized to levy a retailers' occupation tax and a | 9 |
| service occupation tax at the rate of (rate)? The current | 10 |
| tax rate is (current rate). | 11 |
| The election authority must record the votes as "Yes" or "No". | 12 |
| If a majority of the electors voting on the question vote | 13 |
| in the affirmative, the county board may thereafter levy the | 14 |
| tax up to the rate approved by referendum. | 15 |
| On and after September 1, 1991, this
additional tax may not | 16 |
| be imposed on the sales of food for human
consumption which is | 17 |
| to be consumed off the premises where it is sold
(other than | 18 |
| alcoholic beverages, soft drinks and food which has been
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| prepared for immediate consumption) and prescription and | 20 |
| nonprescription
medicines, drugs, medical appliances and | 21 |
| insulin, urine testing materials,
syringes and needles used by | 22 |
| diabetics. The tax imposed by a home rule
county pursuant to | 23 |
| this 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 that is
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| issued by the Department to a retailer under the Retailers'
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HB0663 |
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LRB096 07903 RCE 18006 b |
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| Occupation Tax Act shall permit the retailer to engage in a
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| business that is taxable under any ordinance or resolution
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| enacted pursuant to this Section without registering | 4 |
| separately with the
Department under such ordinance or | 5 |
| resolution or under this Section. The
Department shall have | 6 |
| full power to administer and enforce this Section; to
collect | 7 |
| all taxes and penalties due hereunder; to dispose of taxes and
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| penalties so collected in the manner hereinafter provided; and | 9 |
| to
determine all rights to credit memoranda arising on account | 10 |
| of the
erroneous payment of tax or penalty hereunder. In the | 11 |
| administration of,
and compliance with, this Section, the | 12 |
| Department and persons who are
subject to this Section shall | 13 |
| have the same rights, remedies, privileges,
immunities, powers | 14 |
| and duties, and be subject to the same conditions,
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| restrictions, limitations, penalties and definitions of terms, | 16 |
| and employ
the same modes of procedure, as are prescribed in | 17 |
| Sections 1, 1a, 1a-1, 1d,
1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through | 18 |
| 2-65 (in respect to all provisions
therein other
than the State | 19 |
| rate of tax), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
5k, | 20 |
| 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the Retailers'
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| Occupation Tax Act and Section 3-7 of the Uniform Penalty and | 22 |
| Interest Act,
as fully as if those provisions were set forth | 23 |
| herein.
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| No tax may be imposed by a home rule county pursuant to | 25 |
| this Section
unless the county also imposes a tax at the same | 26 |
| rate pursuant
to Section 5-1007.
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LRB096 07903 RCE 18006 b |
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| Persons subject to any tax imposed pursuant to the | 2 |
| authority granted
in this Section may reimburse themselves for | 3 |
| their seller's tax
liability hereunder by separately stating | 4 |
| such tax as an additional
charge, which charge may be stated in | 5 |
| combination, in a single amount,
with State tax which sellers | 6 |
| are required to collect under the Use Tax
Act, pursuant to such | 7 |
| bracket schedules as the Department may prescribe.
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| Whenever the Department determines that a refund should be | 9 |
| made under
this Section to a claimant instead of issuing a | 10 |
| credit memorandum, the
Department shall notify the State | 11 |
| Comptroller, who shall cause the
order to be drawn for the | 12 |
| amount specified and to the person named
in the notification | 13 |
| from the Department. The
refund shall be paid by the State | 14 |
| Treasurer out of the home rule county
retailers' occupation tax | 15 |
| fund.
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| The Department shall forthwith pay over to the State | 17 |
| Treasurer, ex
officio, as trustee, all taxes and penalties | 18 |
| collected hereunder. On or
before the 25th day of each calendar | 19 |
| month, the Department shall
prepare and certify to the | 20 |
| Comptroller the disbursement of stated sums
of money to named | 21 |
| counties, the counties to be those from which retailers
have | 22 |
| paid taxes or penalties hereunder to the Department during the | 23 |
| second
preceding calendar month. The amount to be paid to each | 24 |
| county shall be
the amount (not including credit memoranda) | 25 |
| collected hereunder during the
second preceding calendar month | 26 |
| by the Department plus an amount the
Department determines is |
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HB0663 |
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LRB096 07903 RCE 18006 b |
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| necessary to offset any amounts that
were erroneously paid to a | 2 |
| different taxing body, and not including an
amount equal to the | 3 |
| amount of refunds made during the second preceding
calendar | 4 |
| month by the Department on behalf of such county, and not
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| including any amount which the Department determines is | 6 |
| necessary to offset
any amounts which were payable to a | 7 |
| different taxing body but were
erroneously paid to the county. | 8 |
| Within 10 days after receipt, by the
Comptroller, of the | 9 |
| disbursement certification to the counties provided for
in this | 10 |
| Section to be given to the Comptroller by the Department, the
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| Comptroller shall cause the orders to be drawn for the | 12 |
| respective amounts
in accordance with the directions contained | 13 |
| in the certification.
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| In addition to the disbursement required by the preceding | 15 |
| paragraph,
an allocation shall be made in March of each year to | 16 |
| each county that
received more than $500,000 in disbursements | 17 |
| under the preceding
paragraph in the preceding calendar year. | 18 |
| The allocation shall be in an
amount equal to the average | 19 |
| monthly distribution made to each such county
under the | 20 |
| preceding paragraph during the preceding calendar year | 21 |
| (excluding
the 2 months of highest receipts). The distribution | 22 |
| made in March of each
year subsequent to the year in which an | 23 |
| allocation was made pursuant to
this paragraph and the | 24 |
| preceding paragraph shall be reduced by the amount
allocated | 25 |
| and disbursed under this paragraph in the preceding calendar
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| year. The Department shall prepare and certify to the |
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HB0663 |
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LRB096 07903 RCE 18006 b |
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| Comptroller for
disbursement the allocations made in | 2 |
| accordance with this paragraph.
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| For the purpose of determining the local governmental unit | 4 |
| whose tax
is applicable, a retail sale by a producer of coal or | 5 |
| other mineral
mined in Illinois is a sale at retail at the | 6 |
| place where the coal or
other mineral mined in Illinois is | 7 |
| extracted from the earth. This
paragraph does not apply to coal | 8 |
| or other mineral when it is delivered
or shipped by the seller | 9 |
| to the purchaser at a point outside Illinois so
that the sale | 10 |
| is exempt under the United States
Constitution as a sale in | 11 |
| interstate or foreign commerce.
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| Nothing in this Section shall be construed to authorize a
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| county to impose a tax upon the privilege of engaging in any
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| business which under the Constitution of the United States may | 15 |
| not be
made the subject of taxation by this State.
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| An ordinance or resolution imposing or discontinuing a tax | 17 |
| hereunder or
effecting a change in the rate thereof shall be | 18 |
| adopted and a certified
copy thereof filed with the Department | 19 |
| on or before the first day of June,
whereupon the Department | 20 |
| shall proceed to administer and enforce this
Section as of the | 21 |
| first day of September next following such adoption
and filing. | 22 |
| Beginning January 1, 1992, an ordinance or resolution imposing
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| or discontinuing the tax hereunder or effecting a change in the | 24 |
| rate
thereof shall be adopted and a certified copy thereof | 25 |
| filed with the
Department on or before the first day of July, | 26 |
| whereupon the Department
shall proceed to administer and |
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HB0663 |
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| enforce this Section as of the first day of
October next | 2 |
| following such adoption and filing. Beginning January 1, 1993,
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| an ordinance or resolution imposing or discontinuing the tax | 4 |
| hereunder or
effecting a change in the rate thereof shall be | 5 |
| adopted and a certified
copy thereof filed with the Department | 6 |
| on or before the first day of
October, whereupon the Department | 7 |
| shall proceed to administer and enforce
this Section as of the | 8 |
| first day of January next following such adoption
and filing.
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| Beginning April 1, 1998, an ordinance or
resolution imposing or
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| discontinuing the tax hereunder or effecting a change in the | 11 |
| rate thereof shall
either (i) be adopted and a certified copy | 12 |
| thereof filed with the Department on
or
before the first day of | 13 |
| April, whereupon the Department shall proceed to
administer and | 14 |
| enforce this Section as of the first day of July next following
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| the adoption and filing; or (ii) be adopted and a certified | 16 |
| copy thereof filed
with the Department on or before the first | 17 |
| day of October, whereupon the
Department shall proceed to | 18 |
| administer and enforce this Section as of the first
day of | 19 |
| January next following the adoption and filing.
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| When certifying the amount of a monthly disbursement to a | 21 |
| county under
this Section, the Department shall increase or | 22 |
| decrease such amount by an
amount necessary to offset any | 23 |
| misallocation of previous disbursements.
The offset amount | 24 |
| shall be the amount erroneously disbursed within the
previous 6 | 25 |
| months from the time a misallocation is discovered.
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| This Section shall be known and may be cited as the Home |
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HB0663 |
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LRB096 07903 RCE 18006 b |
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| Rule County
Retailers' Occupation Tax Law.
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| This Section is a denial and limitation of home rule powers | 3 |
| to tax and other powers and functions under subsection (g) of | 4 |
| Section 6 of Article VII of the Illinois Constitution. | 5 |
| (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
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| (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
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| Sec. 5-1007. Home Rule County Service Occupation Tax Law. | 8 |
| The corporate
authorities of a home rule county may impose a | 9 |
| tax upon all persons
engaged, in such county, in the business | 10 |
| of making sales of service at the
same rate of tax imposed | 11 |
| pursuant to Section 5-1006 of the selling price of
all tangible | 12 |
| personal property transferred by such servicemen either in the
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| form of tangible personal property or in the form of real | 14 |
| estate as an
incident to a sale of service. If imposed, such | 15 |
| tax shall only be imposed
in 1/4% increments. If the tax | 16 |
| exceeds 0.75% on the effective date of this amendatory Act of | 17 |
| the 96th General Assembly, then 60 calendar days after that | 18 |
| effective date, the rate reverts to 0.75% by operation of law. | 19 |
| If the county board proposes an increase that would cause this | 20 |
| tax to be imposed at any rate above 0.75%, then the tax may not | 21 |
| be levied until the question of levying the tax has been | 22 |
| submitted to the electors of the county at a regular election | 23 |
| and approved by a majority of the electors voting on the | 24 |
| question. After the adoption of a resolution by the county | 25 |
| board for the submission of the question to the electors of the |
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HB0663 |
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LRB096 07903 RCE 18006 b |
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| county, the board must certify the question to the proper | 2 |
| election authorities. The election authorities must submit the | 3 |
| question at an election in accordance with the Election Code. | 4 |
| An election authority must submit the question in | 5 |
| substantially the following form: | 6 |
| Shall the county board of (name of the county) be | 7 |
| authorized to levy a retailers' occupation tax and a | 8 |
| service occupation tax at the rate of (rate)? The current | 9 |
| tax rate is (current rate). | 10 |
| The election authority must record the votes as "Yes" or "No". | 11 |
| If a majority of the electors voting on the question vote | 12 |
| in the affirmative, the county board may thereafter levy the | 13 |
| tax up to the rate approved by referendum. | 14 |
| On and after September 1, 1991, this additional tax may
not | 15 |
| be imposed on the sales of food for human consumption which is | 16 |
| to be
consumed off the premises where it is sold (other than | 17 |
| alcoholic beverages,
soft drinks and food which has been | 18 |
| prepared for immediate consumption) and
prescription and | 19 |
| nonprescription medicines, drugs, medical appliances and
| 20 |
| insulin, urine testing materials, syringes and needles used by | 21 |
| diabetics.
The tax imposed by a home rule county pursuant to | 22 |
| this Section and all
civil penalties that may be assessed as an | 23 |
| incident thereof shall be
collected and enforced by the State | 24 |
| Department of Revenue. The certificate
of registration which is | 25 |
| issued by the Department to a retailer under the
Retailers' | 26 |
| Occupation Tax Act or under the Service Occupation Tax Act |
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LRB096 07903 RCE 18006 b |
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| shall
permit such registrant to engage in a business which is | 2 |
| taxable under any
ordinance or resolution enacted pursuant to | 3 |
| this Section without
registering separately with the | 4 |
| Department under such ordinance or
resolution or under this | 5 |
| Section. The Department shall have full power
to administer and | 6 |
| enforce this Section; to collect all taxes and
penalties due | 7 |
| hereunder; to dispose of taxes and penalties so collected
in | 8 |
| the manner hereinafter provided; and to determine all rights to
| 9 |
| credit memoranda arising on account of the erroneous payment of | 10 |
| tax or
penalty hereunder. In the administration of, and | 11 |
| compliance with, this
Section the Department and persons who | 12 |
| are subject to this Section
shall have the same rights, | 13 |
| remedies, privileges, immunities, powers and
duties, and be | 14 |
| subject to the same conditions, restrictions,
limitations, | 15 |
| penalties and definitions of terms, and employ the same
modes | 16 |
| of procedure, as are prescribed in Sections 1a-1, 2, 2a, 3 | 17 |
| through
3-50 (in respect to all provisions therein other than | 18 |
| the State rate of
tax), 4 (except that the reference to the | 19 |
| State shall be to the taxing
county), 5, 7, 8 (except that the | 20 |
| jurisdiction to which the tax shall be a
debt to the extent | 21 |
| indicated in that Section 8 shall be the taxing county),
9 | 22 |
| (except as to the disposition of taxes and penalties collected, | 23 |
| and
except that the returned merchandise credit for this county | 24 |
| tax may not be
taken against any State tax), 10, 11, 12 (except | 25 |
| the reference therein to
Section 2b of the Retailers' | 26 |
| Occupation Tax Act), 13 (except that any
reference to the State |
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HB0663 |
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LRB096 07903 RCE 18006 b |
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| shall mean the taxing county), the first paragraph
of Section | 2 |
| 15, 16, 17, 18, 19 and 20 of the Service Occupation Tax
Act and | 3 |
| Section 3-7 of the Uniform Penalty and Interest Act, as fully | 4 |
| as if
those provisions were set forth herein.
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| No tax may be imposed by a home rule county pursuant to | 6 |
| this Section
unless such county also imposes a tax at the same | 7 |
| rate pursuant to Section
5-1006.
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| Persons subject to any tax imposed pursuant to the | 9 |
| authority granted
in this Section may reimburse themselves for | 10 |
| their serviceman's tax
liability hereunder by separately | 11 |
| stating such tax as an additional
charge, which charge may be | 12 |
| stated in combination, in a single amount,
with State tax which | 13 |
| servicemen are authorized to collect under the
Service Use Tax | 14 |
| Act, pursuant to such bracket schedules as the
Department may | 15 |
| prescribe.
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| Whenever the Department determines that a refund should be | 17 |
| made under
this Section to a claimant instead of issuing credit | 18 |
| memorandum, the
Department shall notify the State Comptroller, | 19 |
| who shall cause the
order to be drawn for the amount specified, | 20 |
| and to the person named,
in such notification from the | 21 |
| Department. Such refund shall be paid by
the State Treasurer | 22 |
| out of the home rule county retailers' occupation tax fund.
| 23 |
| The Department shall forthwith pay over to the State | 24 |
| Treasurer,
ex-officio, as trustee, all taxes and penalties | 25 |
| collected hereunder. On
or before the 25th day of each calendar | 26 |
| month, the Department shall
prepare and certify to the |
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HB0663 |
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LRB096 07903 RCE 18006 b |
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| Comptroller the disbursement of stated sums
of money to named | 2 |
| counties, the counties to be those from
which suppliers and | 3 |
| servicemen have paid taxes or penalties hereunder to
the | 4 |
| Department during the second preceding calendar month. The | 5 |
| amount
to be paid to each county shall be the amount (not | 6 |
| including credit
memoranda) collected hereunder during the | 7 |
| second preceding calendar
month by the Department, and not | 8 |
| including an amount equal to the amount
of refunds made during | 9 |
| the second preceding calendar month by the
Department on behalf | 10 |
| of such county. Within 10 days after receipt, by the
| 11 |
| Comptroller, of the disbursement certification to the counties | 12 |
| provided for
in this Section to be given to the Comptroller by | 13 |
| the Department, the
Comptroller shall cause the orders to be | 14 |
| drawn for the respective amounts
in accordance with the | 15 |
| directions contained in such certification.
| 16 |
| In addition to the disbursement required by the preceding | 17 |
| paragraph, an
allocation shall be made in each year to each | 18 |
| county which received more
than $500,000 in disbursements under | 19 |
| the preceding paragraph in the
preceding calendar year. The | 20 |
| allocation shall be in an amount equal to the
average monthly | 21 |
| distribution made to each such county under the preceding
| 22 |
| paragraph during the preceding calendar year (excluding the 2 | 23 |
| months of
highest receipts). The distribution made in March of | 24 |
| each year
subsequent to the year in which an allocation was | 25 |
| made pursuant to this
paragraph and the preceding paragraph | 26 |
| shall be reduced by the
amount allocated and disbursed under |
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HB0663 |
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LRB096 07903 RCE 18006 b |
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| this paragraph in the preceding
calendar year. The Department | 2 |
| shall prepare and certify to the Comptroller
for disbursement | 3 |
| the allocations made in accordance with this paragraph.
| 4 |
| Nothing in this Section shall be construed to authorize a
| 5 |
| county to impose a tax upon the privilege of engaging in any
| 6 |
| business which under the Constitution of the United States may | 7 |
| not be
made the subject of taxation by this State.
| 8 |
| An ordinance or resolution imposing or discontinuing a tax | 9 |
| hereunder or
effecting a change in the rate thereof shall be | 10 |
| adopted and a certified
copy thereof filed with the Department | 11 |
| on or before the first day of June,
whereupon the Department | 12 |
| shall proceed to administer and enforce this
Section as of the | 13 |
| first day of September next following such adoption and
filing. | 14 |
| Beginning January 1, 1992, an ordinance or resolution imposing
| 15 |
| or discontinuing the tax hereunder or effecting a change in the | 16 |
| rate
thereof shall be adopted and a certified copy thereof | 17 |
| filed with the
Department on or before the first day of July, | 18 |
| whereupon the Department
shall proceed to administer and | 19 |
| enforce this Section as of the first day of
October next | 20 |
| following such adoption and filing.
Beginning January 1, 1993, | 21 |
| an ordinance or resolution imposing or
discontinuing the tax | 22 |
| hereunder or effecting a change in the rate thereof
shall be | 23 |
| adopted and a certified copy thereof filed with the Department | 24 |
| on
or before the first day of October, whereupon the Department | 25 |
| shall proceed
to administer and enforce this Section as of the | 26 |
| first day of January next
following such adoption and filing.
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HB0663 |
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LRB096 07903 RCE 18006 b |
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| 1 |
| Beginning April 1, 1998, an ordinance or
resolution imposing or
| 2 |
| discontinuing the tax hereunder or effecting a change in the | 3 |
| rate thereof shall
either (i) be adopted and a certified copy | 4 |
| thereof filed with the Department on
or
before the first day of | 5 |
| April, 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) be adopted and a certified | 8 |
| copy thereof filed
with the Department on or before the first | 9 |
| day of October, whereupon the
Department shall proceed to | 10 |
| administer and enforce this Section as of the first
day of | 11 |
| January next following the adoption and filing.
| 12 |
| This Section shall be known and may be cited as the Home | 13 |
| Rule County
Service Occupation Tax Law. | 14 |
| This Section is a denial and limitation of home rule powers | 15 |
| to tax and other powers and functions under subsection (g) of | 16 |
| Section 6 of Article VII of the Illinois Constitution.
| 17 |
| (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
| 18 |
| Section 99. Effective date. This Act takes effect upon | 19 |
| becoming law.
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