Full Text of HB2843 101st General Assembly
HB2843 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB2843 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED: |
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65 ILCS 5/8-11-6 | from Ch. 24, par. 8-11-6 |
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Amends the Home Rule Municipal Use Tax Act in the Illinois Municipal Code. Provides that all home rule municipalities imposing a home rule municipal use tax (rather than only home rule municipalities with 2,000,000 or more inhabitants) may impose an additional use tax at a rate that is an increment of 1/4% not to exceed 1% and based on the selling price of the tangible personal property. Provides that the Department of Revenue may collect a 2% monthly administrative fee from the amount to be remitted back to a municipality with under 2,000,000 inhabitants. Effective July 1, 2019.
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| | FISCAL NOTE ACT MAY APPLY | | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Municipal Code is amended by | 5 | | changing Section 8-11-6 as follows:
| 6 | | (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
| 7 | | Sec. 8-11-6. Home Rule Municipal Use Tax Act.
| 8 | | (a) The corporate authorities of a home rule municipality | 9 | | may
impose a tax upon the privilege of using, in such | 10 | | municipality, any item of
tangible personal property which is | 11 | | purchased at retail from a retailer, and
which is titled or | 12 | | registered at a location within the corporate limits of
such | 13 | | home rule municipality with an agency of this State's | 14 | | government, at a
rate which is an increment of 1/4% and based | 15 | | on the selling price of such
tangible personal property, as | 16 | | "selling price" is defined in the Use Tax
Act. In home rule | 17 | | municipalities with less than 2,000,000 inhabitants, the
tax | 18 | | shall be collected by the municipality imposing the tax from | 19 | | persons
whose Illinois address for titling or registration | 20 | | purposes is given as
being in such municipality.
| 21 | | (b) The In home rule municipalities with 2,000,000 or more | 22 | | inhabitants, the
corporate authorities of the home rule | 23 | | municipality may additionally impose a tax
beginning July 1, |
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| 1 | | 1991 upon the privilege of using in the
municipality, any item | 2 | | of tangible personal property, other than tangible
personal | 3 | | property titled or registered with an agency of the State's
| 4 | | government, that is purchased at retail from a retailer located | 5 | | outside the
corporate limits of the municipality, at a rate | 6 | | that is an increment of
1/4% not to exceed 1% and based on the | 7 | | selling price of the tangible
personal property, as "selling | 8 | | price" is defined in the Use Tax Act. Such
tax shall be | 9 | | collected from the purchaser either by the municipality | 10 | | imposing
such tax or by the Department of Revenue pursuant to | 11 | | an agreement between the
Department and the municipality. If | 12 | | the Department of Revenue is designated the administering | 13 | | agency for tax collection and remittance by a municipality with | 14 | | under 2,000,000 inhabitants imposing an additional tax under | 15 | | this subsection, then the Department may collect a 2% monthly | 16 | | administrative fee from the amount to be remitted back to the | 17 | | municipality.
| 18 | | To prevent multiple home rule taxation, the use in a home | 19 | | rule
municipality of tangible personal property that is | 20 | | acquired outside the
municipality and caused to be brought into | 21 | | the municipality by a person who
has already paid a home rule | 22 | | municipal tax in another municipality in
respect to the sale, | 23 | | purchase, or use of that property, shall be exempt to
the | 24 | | extent of the amount of the tax properly due and paid in the | 25 | | other home
rule municipality.
| 26 | | (c) If a municipality having 2,000,000 or more inhabitants |
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| 1 | | imposes the
tax authorized by subsection (a),
then the tax | 2 | | shall be collected by the Illinois Department of Revenue when
| 3 | | the property is purchased at retail from a retailer in the | 4 | | county in which
the home rule municipality imposing the tax is | 5 | | located, and in all
contiguous counties. The tax shall be | 6 | | remitted to the State, or an
exemption determination must be | 7 | | obtained from the Department before the
title or certificate of | 8 | | registration for the property may be issued. The
tax or proof | 9 | | of exemption may be transmitted to the Department by way of
the | 10 | | State agency with which, or State officer with whom, the | 11 | | tangible
personal property must be titled or registered if the | 12 | | Department and that
agency or State officer determine that this | 13 | | procedure will expedite the
processing of applications for | 14 | | title or registration.
| 15 | | The Department shall have full power to administer and | 16 | | enforce this
Section to collect all taxes, penalties and | 17 | | interest due hereunder, to
dispose of taxes, penalties and | 18 | | interest so collected in the manner
hereinafter provided, and | 19 | | determine all rights to credit memoranda or
refunds arising on | 20 | | account of the erroneous payment of tax, penalty or
interest | 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 as |
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| 1 | | are
prescribed in Sections 2 (except the definition of | 2 | | "retailer maintaining a
place of business in this State"), 3 | 3 | | (except provisions pertaining to the
State rate of tax, and | 4 | | except provisions concerning collection or refunding
of the tax | 5 | | by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22 of the | 6 | | Use Tax Act, which are not inconsistent with
this Section, as | 7 | | fully as if provisions contained in those Sections of the
Use | 8 | | Tax Act were set forth herein.
| 9 | | Whenever the Department determines that a refund shall be | 10 | | made under this
Section to a claimant instead of issuing a | 11 | | credit memorandum, the
Department shall notify the State | 12 | | Comptroller, who shall cause the order to
be drawn for the | 13 | | amount specified, and to the person named, in such
notification | 14 | | from the Department. Such refund shall be paid by the State
| 15 | | Treasurer out of the home rule municipal retailers' occupation | 16 | | tax fund.
| 17 | | The Department shall forthwith pay over to the State | 18 | | Treasurer, ex
officio, as trustee, all taxes, penalties and | 19 | | interest collected hereunder.
On or before the 25th day of each | 20 | | calendar month, the Department shall
prepare and certify to the | 21 | | State Comptroller the disbursement of stated
sums of money to | 22 | | named municipalities, the municipality in each instance to
be | 23 | | that municipality from which the Department during the second | 24 | | preceding
calendar month, collected municipal use tax from any | 25 | | person whose Illinois
address for titling or registration | 26 | | purposes is given as being in such
municipality. The amount to |
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| 1 | | be paid to each
municipality shall be the amount (not including | 2 | | credit memoranda) collected
hereunder during the second | 3 | | preceding calendar month by the Department, and
not including | 4 | | an amount equal to the amount of refunds made during the
second | 5 | | preceding calendar month by the Department on behalf of such
| 6 | | municipality, less 2% of the balance, which sum shall be | 7 | | retained by the State Treasurer to cover the costs incurred by | 8 | | the Department in administering and enforcing the provisions of | 9 | | this Section. The Department, at the time of each monthly | 10 | | disbursement to the municipalities, shall prepare and certify | 11 | | to the Comptroller the amount so retained by the State | 12 | | Treasurer, which shall be transferred into the Tax Compliance | 13 | | and Administration Fund. Within 10 days
after receipt by the | 14 | | State Comptroller of the disbursement certification to
the | 15 | | municipalities provided for in this Section to be given to the | 16 | | State
Comptroller by the Department,
the State Comptroller | 17 | | shall cause the orders to be drawn for the respective
amounts | 18 | | in accordance with the directions contained in that | 19 | | certification.
| 20 | | Any ordinance imposing or discontinuing any tax to be | 21 | | collected and
enforced by the Department under this Section | 22 | | shall
be adopted and a certified copy thereof filed with the | 23 | | Department on or
before October 1, whereupon the Department of | 24 | | Revenue shall proceed to
administer and enforce this Section on | 25 | | behalf of the municipalities as of
January 1 next following | 26 | | such adoption and filing. Beginning April 1, 1998,
any |
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| 1 | | ordinance imposing or discontinuing any tax to be collected and | 2 | | enforced
by the Department under this Section shall either (i) | 3 | | be adopted and a
certified copy thereof filed with the | 4 | | Department on or before April 1,
whereupon the Department of | 5 | | Revenue shall proceed to administer and enforce
this Section on | 6 | | behalf of the municipalities as of July 1 next following the
| 7 | | adoption and filing; or (ii) be adopted and a certified copy | 8 | | thereof filed
with the Department on or before October 1, | 9 | | whereupon the Department of
Revenue shall proceed to administer | 10 | | and enforce this Section on behalf of
the municipalities as of | 11 | | January 1 next following the adoption and filing.
| 12 | | Nothing in this subsection (c) shall prevent a home rule | 13 | | municipality
from collecting the tax pursuant to subsection (a) | 14 | | in any situation where
such tax is not collected by the | 15 | | Department of Revenue under this subsection
(c).
| 16 | | (d) Any unobligated balance remaining in the Municipal | 17 | | Retailers'
Occupation Tax Fund on December 31, 1989, which fund | 18 | | was abolished by Public
Act 85-1135, and all receipts of | 19 | | municipal tax as a result of audits of
liability periods prior | 20 | | to January 1, 1990, shall be paid into the Local
Government Tax | 21 | | Fund, for distribution as provided by this Section prior to
the | 22 | | enactment of Public Act 85-1135. All receipts of municipal tax | 23 | | as a
result of an assessment not arising from an audit, for | 24 | | liability periods
prior to January 1, 1990, shall be paid into | 25 | | the Local Government Tax Fund
for distribution before July 1, | 26 | | 1990, as provided by this Section prior to
the enactment of |
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| 1 | | Public Act 85-1135, and on and after July 1, 1990, all
such | 2 | | receipts shall be distributed as provided in Section 6z-18 of | 3 | | the
State Finance Act.
| 4 | | (e) As used in this Section, "Municipal" and "Municipality" | 5 | | means a city,
village or incorporated town, including an | 6 | | incorporated town which has
superseded a civil township.
| 7 | | (f) This Section shall be known and may be cited as the | 8 | | Home Rule
Municipal Use Tax Act.
| 9 | | (Source: P.A. 98-1049, eff. 8-25-14.)
| 10 | | Section 99. Effective date. This Act takes effect July 1, | 11 | | 2019.
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