Full Text of HB0945 101st General Assembly
HB0945 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB0945 Introduced , by Rep. Michael J. Madigan SYNOPSIS AS INTRODUCED: | | 65 ILCS 5/8-11-1.4 | from Ch. 24, par. 8-11-1.4 |
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Amends the Illinois
Municipal Code.
Makes a technical change
in a Section concerning a non-home rule municipal service
occupation tax.
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| | A BILL FOR |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Municipal Code is amended by | 5 | | changing Section 8-11-1.4 as follows:
| 6 | | (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
| 7 | | Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation | 8 | | Tax Act. The
The
corporate authorities of a non-home rule | 9 | | municipality may impose a
tax upon all persons engaged, in such | 10 | | municipality, in the business of
making sales of service for | 11 | | expenditure on
public infrastructure or for property tax relief | 12 | | or both as defined in
Section 8-11-1.2 if approved by
| 13 | | referendum as provided in Section 8-11-1.1, of the selling | 14 | | price of
all tangible personal property transferred by such | 15 | | servicemen either in
the form of tangible personal property or | 16 | | in the form of real estate as
an incident to a sale of service.
| 17 | | If the tax is approved by referendum on or after July 14, 2010 | 18 | | (the effective date of Public Act 96-1057), the corporate | 19 | | authorities of a non-home rule municipality may, until December | 20 | | 31, 2020, use the proceeds of the tax for expenditure on | 21 | | municipal operations, in addition to or in lieu of any | 22 | | expenditure on public infrastructure or for property tax | 23 | | relief. The tax imposed may not be more than 1% and may be |
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| 1 | | imposed only in
1/4% increments. The tax may not be imposed on | 2 | | the sale of food for human
consumption that is
to be consumed | 3 | | off the premises where it is sold (other than alcoholic
| 4 | | beverages, soft drinks, and food that has been prepared for | 5 | | immediate
consumption) and prescription and nonprescription | 6 | | medicines, drugs, medical
appliances, and insulin, urine | 7 | | testing materials, syringes, and needles used by
diabetics.
The | 8 | | tax imposed by a municipality
pursuant to this Section and all | 9 | | civil penalties that may be assessed as
an incident thereof | 10 | | shall be collected and enforced by the State
Department of | 11 | | Revenue. The certificate of registration which is issued
by the | 12 | | Department to a retailer under the Retailers' Occupation Tax
| 13 | | Act or under the Service Occupation Tax Act shall permit
such | 14 | | registrant to engage in a business which is taxable under any
| 15 | | ordinance or resolution enacted pursuant to this Section | 16 | | without
registering separately with the Department under such | 17 | | ordinance or
resolution or under this Section. The Department | 18 | | shall have full power
to administer and enforce this Section; | 19 | | to collect all taxes and
penalties due hereunder; to dispose of | 20 | | taxes and penalties so collected
in the manner hereinafter | 21 | | provided, and to determine all rights to
credit memoranda | 22 | | arising on account of the erroneous payment of tax or
penalty | 23 | | hereunder. In the administration of, and compliance with, this
| 24 | | Section the Department and persons who are subject to this | 25 | | Section
shall have the same rights, remedies, privileges, | 26 | | immunities, powers and
duties, and be subject to the same |
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| 1 | | conditions, restrictions, limitations,
penalties and | 2 | | definitions of terms, and employ the same modes of procedure,
| 3 | | as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in | 4 | | respect to
all provisions therein other than the State rate of | 5 | | tax), 4 (except that
the reference to the State shall be to the | 6 | | taxing municipality), 5, 7, 8
(except that the jurisdiction to | 7 | | which the tax shall be a debt to the
extent indicated in that | 8 | | Section 8 shall be the taxing municipality), 9
(except as to | 9 | | the disposition of taxes and penalties collected, and except
| 10 | | that the returned merchandise credit for this municipal tax may | 11 | | not be
taken against any State tax), 10, 11, 12 (except the | 12 | | reference therein to
Section 2b of the Retailers' Occupation | 13 | | Tax Act), 13 (except that any
reference to the State shall mean | 14 | | the taxing municipality), the first
paragraph of Section 15, | 15 | | 16, 17, 18, 19 and 20 of the Service Occupation
Tax Act and | 16 | | Section 3-7 of the Uniform Penalty and Interest Act, as fully
| 17 | | as if those provisions were set forth herein. | 18 | | No municipality may impose a tax under this Section unless | 19 | | the municipality
also imposes a tax at the same rate under | 20 | | Section 8-11-1.3 of this Code.
| 21 | | Persons subject to any tax imposed pursuant to the | 22 | | authority granted
in this Section may reimburse themselves for | 23 | | their serviceman's tax
liability hereunder by separately | 24 | | stating such tax as an additional
charge, which charge may be | 25 | | stated in combination, in a single amount,
with State tax which | 26 | | servicemen are authorized to collect under the
Service Use Tax |
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| 1 | | Act, pursuant to such bracket schedules as the
Department may | 2 | | prescribe.
| 3 | | Whenever the Department determines that a refund should be | 4 | | made under
this Section to a claimant instead of issuing credit | 5 | | memorandum, the
Department shall notify the State Comptroller, | 6 | | who shall cause the
order to be drawn for the amount specified, | 7 | | and to the person named,
in such notification from the | 8 | | Department. Such refund shall be paid by
the State Treasurer | 9 | | out of the municipal retailers' occupation tax fund.
| 10 | | The Department shall forthwith pay over to the State | 11 | | Treasurer,
ex officio, as trustee, all taxes and penalties | 12 | | collected hereunder. | 13 | | As soon as possible after the first day of each month, | 14 | | beginning January 1, 2011, upon certification of the Department | 15 | | of Revenue, the Comptroller shall order transferred, and the | 16 | | Treasurer shall transfer, to the STAR Bonds Revenue Fund the | 17 | | local sales tax increment, as defined in the Innovation | 18 | | Development and Economy Act, collected under this Section | 19 | | during the second preceding calendar month for sales within a | 20 | | STAR bond district. | 21 | | After the monthly transfer to the STAR Bonds Revenue Fund, | 22 | | on
or before the 25th day of each calendar month, the | 23 | | Department shall
prepare and certify to the Comptroller the | 24 | | disbursement of stated sums
of money to named municipalities, | 25 | | the municipalities to be those from
which suppliers and | 26 | | servicemen have paid taxes or penalties hereunder to
the |
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| 1 | | Department during the second preceding calendar month. The | 2 | | amount
to be paid to each municipality shall be the amount (not | 3 | | including credit
memoranda) collected hereunder during the | 4 | | second preceding calendar
month by the Department, and not | 5 | | including an amount equal to the amount
of refunds made during | 6 | | the second preceding calendar month by the
Department on behalf | 7 | | of such municipality, and not including any amounts that are | 8 | | transferred to the STAR Bonds Revenue Fund, less 1.5% of the | 9 | | remainder, which the Department shall transfer into the Tax | 10 | | Compliance and Administration Fund. The Department, at the time | 11 | | of each monthly disbursement to the municipalities, shall | 12 | | prepare and certify to the State Comptroller the amount to be | 13 | | transferred into the Tax Compliance and Administration Fund | 14 | | under this Section. Within 10 days
after receipt, by the | 15 | | Comptroller, of the disbursement certification to
the | 16 | | municipalities, the General Revenue Fund, and the Tax | 17 | | Compliance and Administration Fund provided for in this
Section | 18 | | to be given to the Comptroller by the Department, the
| 19 | | Comptroller shall cause the orders to be drawn for the | 20 | | respective
amounts in accordance with the directions contained | 21 | | in such
certification.
| 22 | | The Department of Revenue shall implement this amendatory | 23 | | Act of the 91st
General Assembly so as to collect the tax on | 24 | | and after January 1, 2002.
| 25 | | Nothing in this Section shall be construed to authorize a
| 26 | | municipality to impose a tax upon the privilege of engaging in |
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| 1 | | any
business which under the constitution of the United States | 2 | | may not be
made the subject of taxation by this State.
| 3 | | As used in this Section, "municipal" or "municipality" | 4 | | means or refers to
a city, village or incorporated town, | 5 | | including an incorporated town which
has superseded a civil | 6 | | township.
| 7 | | This Section shall be known and may be cited as the | 8 | | "Non-Home Rule Municipal
Service Occupation Tax Act".
| 9 | | (Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
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