Full Text of HB5760 102nd General Assembly
HB5760 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB5760 Introduced 11/16/2022, by Rep. Deb Conroy SYNOPSIS AS INTRODUCED: |
| 55 ILCS 5/5-1006.8 | | 65 ILCS 5/8-11-23 | |
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Amends the County Cannabis Retailers' Occupation Tax Law and Municipal Cannabis Retailers' Occupation Tax Law. Provides that a certified copy of an ordinance imposing, or ordinance or resolution changing or discontinuing, a tax under the specified Laws shall be filed with the Department of Revenue and proof of filing shall be maintained by the county or municipality for at least 5 years. Effective immediately.
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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 Counties Code is amended by changing | 5 | | Section 5-1006.8 as follows: | 6 | | (55 ILCS 5/5-1006.8) | 7 | | Sec. 5-1006.8. County Cannabis Retailers' Occupation Tax | 8 | | Law. | 9 | | (a) This Section may be referred to as the County Cannabis | 10 | | Retailers' Occupation Tax Law. The corporate authorities of | 11 | | any county may, by ordinance, impose a tax upon all persons | 12 | | engaged in the business of selling cannabis, other than | 13 | | cannabis purchased under the Compassionate Use of Medical | 14 | | Cannabis Program Act, at retail in the county on the gross | 15 | | receipts from these sales made in the course of that business. | 16 | | A certified copy of an ordinance imposing, or ordinance or | 17 | | resolution changing or discontinuing, a tax under this Section | 18 | | shall be filed with the Department of Revenue and proof of | 19 | | filing shall be maintained by the county for at least 5 years. | 20 | | If imposed, the tax shall be imposed only in 0.25% increments. | 21 | | The tax rate may not exceed: (i) 3.75% of the gross receipts of | 22 | | sales made in unincorporated areas of the county; and (ii) 3% | 23 | | of the gross receipts of sales made in a municipality located |
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| 1 | | in the county. The tax imposed under this Section and all civil | 2 | | penalties that may be assessed as an incident of the tax shall | 3 | | be collected and enforced by the Department of Revenue. The | 4 | | Department of Revenue shall have full power to administer and | 5 | | enforce this Section; to collect all taxes and penalties due | 6 | | hereunder; to dispose of taxes and penalties so collected in | 7 | | the manner hereinafter provided; and to determine all rights | 8 | | to credit memoranda arising on account of the erroneous | 9 | | payment of tax or penalty under this Section. In the | 10 | | administration of and compliance with this Section, the | 11 | | Department of Revenue and persons who are subject to this | 12 | | Section shall have the same rights, remedies, privileges, | 13 | | immunities, powers and duties, and be subject to the same | 14 | | conditions, restrictions, limitations, penalties, and | 15 | | definitions of terms, and employ the same modes of procedure, | 16 | | as are described in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, | 17 | | 1n, 2 through 2-65 (in respect to all provisions therein other | 18 | | than the State rate of tax), 2a, 2b, 2c, 2i, 3 (except as to | 19 | | the disposition of taxes and penalties collected), 4, 5, 5a, | 20 | | 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6bb, 6c, 6d, | 21 | | 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation | 22 | | Tax Act and Section 3-7 of the Uniform Penalty and Interest Act | 23 | | as fully as if those provisions were set forth in this Section. | 24 | | (b) Persons subject to any tax imposed under the authority | 25 | | granted in this Section may reimburse themselves for their | 26 | | seller's tax liability hereunder by separately stating that |
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| 1 | | tax as an additional charge, which charge may be stated in | 2 | | combination, in a single amount, with any State tax that | 3 | | sellers are required to collect. | 4 | | (c) Whenever the Department of Revenue determines that a | 5 | | refund should be made under this Section to a claimant instead | 6 | | of issuing a credit memorandum, the Department of Revenue | 7 | | shall notify the State Comptroller, who shall cause the order | 8 | | to be drawn for the amount specified and to the person named in | 9 | | the notification from the Department of Revenue. | 10 | | (d) The Department of Revenue shall immediately pay over | 11 | | to the State Treasurer, ex officio, as trustee, all taxes and | 12 | | penalties collected hereunder for deposit into the Local | 13 | | Cannabis Retailers' Occupation Tax Trust Fund. | 14 | | (e) On or before the 25th day of each calendar month, the | 15 | | Department of Revenue shall prepare and certify to the | 16 | | Comptroller the amount of money to be disbursed from the Local | 17 | | Cannabis Retailers' Occupation Tax Trust Fund to counties from | 18 | | which retailers have paid taxes or penalties under this | 19 | | Section during the second preceding calendar month. The amount | 20 | | to be paid to each county shall be the amount (not including | 21 | | credit memoranda) collected under this Section from sales made | 22 | | in the county during the second preceding calendar month, plus | 23 | | an amount the Department of Revenue determines is necessary to | 24 | | offset any amounts that were erroneously paid to a different | 25 | | taxing body, and not including an amount equal to the amount of | 26 | | refunds made during the second preceding calendar month by the |
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| 1 | | Department on behalf of such county, and not including any | 2 | | amount that the Department determines is necessary to offset | 3 | | any amounts that were payable to a different taxing body but | 4 | | were erroneously paid to the county, less 1.5% of the | 5 | | remainder, which the Department shall transfer into the Tax | 6 | | Compliance and Administration Fund. The Department, at the | 7 | | time of each monthly disbursement to the counties, shall | 8 | | prepare and certify 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 counties | 12 | | and the Tax Compliance and Administration Fund provided for in | 13 | | this Section to be given to the Comptroller by the Department, | 14 | | the Comptroller shall cause the orders to be drawn for the | 15 | | respective amounts in accordance with the directions contained | 16 | | in the certification. | 17 | | (f) An ordinance or resolution imposing or discontinuing a | 18 | | tax under this Section or effecting a change in the rate | 19 | | thereof that is adopted on or after June 25, 2019 (the | 20 | | effective date of Public Act 101-27) and for which a certified | 21 | | copy is filed with the Department on or before April 1, 2020 | 22 | | shall be administered and enforced by the Department beginning | 23 | | on July 1, 2020. For ordinances filed with the Department | 24 | | after April 1, 2020, an ordinance or resolution imposing or | 25 | | discontinuing a tax under this Section or effecting a change | 26 | | in the rate thereof shall either (i) be adopted and a certified |
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| 1 | | copy thereof filed with the Department on or before the first | 2 | | day of April, whereupon the Department shall proceed to | 3 | | administer and enforce this Section as of the first day of July | 4 | | next following the adoption and filing; or (ii) be adopted and | 5 | | a certified copy thereof filed with the Department on or | 6 | | 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 the adoption and filing.
| 9 | | (g) Notwithstanding any provision in this Section to the | 10 | | contrary, if an ordinance or resolution imposing a tax under | 11 | | this Section was adopted on or before October 1, 2020 and a | 12 | | certified copy thereof was filed with the Department of | 13 | | Revenue on or before November 1, 2020, then the Department | 14 | | shall proceed to administer and enforce this Section as of May | 15 | | 1, 2021 for such ordinances or resolutions. | 16 | | (Source: P.A. 101-27, eff. 6-25-19; 101-363, eff. 8-9-19; | 17 | | 101-593, eff. 12-4-19; 102-2, eff. 4-2-21.) | 18 | | Section 10. The Illinois Municipal Code is amended by | 19 | | changing Section 8-11-23 as follows: | 20 | | (65 ILCS 5/8-11-23) | 21 | | Sec. 8-11-23. Municipal Cannabis Retailers' Occupation Tax | 22 | | Law. | 23 | | (a) This Section may be referred to as the Municipal | 24 | | Cannabis Retailers' Occupation Tax Law. The corporate |
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| 1 | | authorities of any municipality may, by ordinance, impose a | 2 | | tax upon all persons engaged in the business of selling | 3 | | cannabis, other than cannabis purchased under the | 4 | | Compassionate Use of Medical Cannabis Program Act, at retail | 5 | | in the municipality on the gross receipts from these sales | 6 | | made in the course of that business. A certified copy of an | 7 | | ordinance imposing, or ordinance or resolution changing or | 8 | | discontinuing, a tax under this Section shall be filed with | 9 | | the Department of Revenue and proof of filing shall be | 10 | | maintained by the municipality for at least 5 years. If | 11 | | imposed, the tax may not exceed 3% of the gross receipts from | 12 | | these sales and shall only be imposed in 1/4% increments. The | 13 | | tax imposed under this Section and all civil penalties that | 14 | | may be assessed as an incident of the tax shall be collected | 15 | | and enforced by the Department of Revenue. The Department of | 16 | | Revenue shall have full power to administer and enforce this | 17 | | Section; to collect all taxes and penalties due hereunder; to | 18 | | dispose of taxes and penalties so collected in the manner | 19 | | hereinafter provided; and to determine all rights to credit | 20 | | memoranda arising on account of the erroneous payment of tax | 21 | | or penalty under this Section. In the administration of and | 22 | | compliance with this Section, the Department and persons who | 23 | | are subject to this Section shall have the same rights, | 24 | | remedies, privileges, immunities, powers and duties, and be | 25 | | subject to the same conditions, restrictions, limitations, | 26 | | penalties and definitions of terms, and employ the same modes |
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| 1 | | of procedure, as are prescribed in Sections 1, 1a, 1d, 1e, 1f, | 2 | | 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all | 3 | | provisions therein other than the State rate of tax), 2a, 2b, | 4 | | 2c, 2i, 3 (except as to the disposition of taxes and penalties | 5 | | collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, | 6 | | 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the | 7 | | Retailers' Occupation Tax Act and Section 3-7 of the Uniform | 8 | | Penalty and Interest Act, as fully as if those provisions were | 9 | | set forth herein. | 10 | | (b) Persons subject to any tax imposed under the authority | 11 | | granted in this Section may reimburse themselves for their | 12 | | seller's tax liability hereunder by separately stating that | 13 | | tax as an additional charge, which charge may be stated in | 14 | | combination, in a single amount, with any State tax that | 15 | | sellers are required to collect. | 16 | | (c) Whenever the Department of Revenue determines that a | 17 | | refund should be made under this Section to a claimant instead | 18 | | of issuing a credit memorandum, the Department of Revenue | 19 | | shall notify the State Comptroller, who shall cause the order | 20 | | to be drawn for the amount specified and to the person named in | 21 | | the notification from the Department of Revenue. | 22 | | (d) The Department of Revenue shall immediately pay over | 23 | | to the State Treasurer, ex officio, as trustee, all taxes and | 24 | | penalties collected hereunder for deposit into the Local | 25 | | Cannabis Retailers' Occupation Tax Trust Fund. | 26 | | (e) On or before the 25th day of each calendar month, the |
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| 1 | | Department of Revenue shall prepare and certify to the | 2 | | Comptroller the amount of money to be disbursed from the Local | 3 | | Cannabis Retailers' Occupation Tax Trust Fund to | 4 | | municipalities from which retailers have paid taxes or | 5 | | penalties under this Section during the second preceding | 6 | | calendar month. The amount to be paid to each municipality | 7 | | shall be the amount (not including credit memoranda) collected | 8 | | under this Section from sales made in the municipality during | 9 | | the second preceding calendar month, plus an amount the | 10 | | Department of Revenue determines is necessary to offset any | 11 | | amounts that were erroneously paid to a different taxing body, | 12 | | and not including an amount equal to the amount of refunds made | 13 | | during the second preceding calendar month by the Department | 14 | | on behalf of such municipality, and not including any amount | 15 | | that the Department determines is necessary to offset any | 16 | | amounts that were payable to a different taxing body but were | 17 | | erroneously paid to the municipality, less 1.5% of the | 18 | | remainder, which the Department shall transfer into the Tax | 19 | | Compliance and Administration Fund. The Department, at the | 20 | | time 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 the certification. | 4 | | (f) An ordinance or resolution imposing or discontinuing a | 5 | | tax under this Section or effecting a change in the rate | 6 | | thereof that is adopted on or after June 25, 2019 (the | 7 | | effective date of Public Act 101-27) and for which a certified | 8 | | copy is filed with the Department on or before April 1, 2020 | 9 | | shall be administered and enforced by the Department beginning | 10 | | on July 1, 2020. For ordinances filed with the Department | 11 | | after April 1, 2020, an ordinance or resolution imposing or | 12 | | discontinuing a tax under this Section or effecting a change | 13 | | in the rate thereof shall either (i) be adopted and a certified | 14 | | copy thereof filed with the Department on or before the first | 15 | | day of April, whereupon the Department shall proceed to | 16 | | administer and enforce this Section as of the first day of July | 17 | | next following the adoption and filing; or (ii) be adopted and | 18 | | a certified copy thereof filed with the Department on or | 19 | | before the first day of October, whereupon the Department | 20 | | shall proceed to administer and enforce this Section as of the | 21 | | first day of January next following the adoption and filing.
| 22 | | (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
| 23 | | Section 99. Effective date. This Act takes effect upon | 24 | | becoming law.
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