Illinois General Assembly - Full Text of SB0503
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Full Text of SB0503  93rd General Assembly

SB0503 93rd General Assembly


                                     LRB093 07936 SJM 08127 b

 1        AN ACT in relation to taxes.

 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 8-11-1.3 as follows:

 6        (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
 7        Sec.   8-11-1.3.  Non-Home   Rule   Municipal  Retailers'
 8    Occupation Tax Act. The corporate authorities of  a  non-home
 9    rule  municipality  may impose a tax upon all persons engaged
10    in the business of selling tangible personal property,  other
11    than on an item of tangible personal property which is titled
12    and  registered  by  an agency of this State's Government, at
13    retail  in  the  municipality  for  expenditure   on   public
14    infrastructure  or for property tax relief or both as defined
15    in Section 8-11-1.2 if approved by referendum as provided  in
16    Section  8-11-1.1, of the gross receipts from such sales made
17    in the course of such business. The tax imposed  may  not  be
18    more  than one-half 1/2 of 1% and may be imposed only in 1/4%
19    increments. The tax may not be imposed on the  sale  of  food
20    for human consumption that is to be consumed off the premises
21    where  it  is  sold  (other  than  alcoholic  beverages, soft
22    drinks,  and  food  that  has  been  prepared  for  immediate
23    consumption) and prescription and nonprescription  medicines,
24    drugs,   medical   appliances,  and  insulin,  urine  testing
25    materials, syringes, and needles used by diabetics.  The  tax
26    imposed  by  a  municipality pursuant to this Section and all
27    civil penalties that may be assessed as an  incident  thereof
28    shall  be  collected  and enforced by the State Department of
29    Revenue.  The certificate of registration which is issued  by
30    the  Department to a retailer under the Retailers' Occupation
31    Tax Act shall permit such retailer to engage  in  a  business
                            -2-      LRB093 07936 SJM 08127 b
 1    which  is  taxable  under any ordinance or resolution enacted
 2    pursuant to this Section without registering separately  with
 3    the  Department  under  such ordinance or resolution or under
 4    this Section.   The  Department  shall  have  full  power  to
 5    administer and enforce this Section; to collect all taxes and
 6    penalties due hereunder; to dispose of taxes and penalties so
 7    collected   in   the  manner  hereinafter  provided,  and  to
 8    determine all rights to credit memoranda, arising on  account
 9    of the erroneous payment of tax or penalty hereunder.  In the
10    administration  of,  and  compliance  with, this Section, the
11    Department and persons who are subject to this Section  shall
12    have  the  same  rights,  remedies,  privileges,  immunities,
13    powers  and  duties,  and  be subject to the same conditions,
14    restrictions,  limitations,  penalties  and  definitions   of
15    terms,  and  employ  the  same  modes  of  procedure,  as are
16    prescribed in Sections 1, 1a, 1a-1, 1d, 1e,  1f,  1i,  1j,  2
17    through 2-65 (in respect to all provisions therein other than
18    the  State  rate of tax), 2c, 3 (except as to the disposition
19    of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d,  5e,
20    5f,  5g,  5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
21    12 and 13 of the Retailers' Occupation Tax  Act  and  Section
22    3-7  of  the  Uniform Penalty and Interest Act as fully as if
23    those provisions were set forth herein.
24        No municipality may  impose  a  tax  under  this  Section
25    unless  the  municipality also imposes a tax at the same rate
26    under Section 8-11-1.4 of this Code.
27        Persons subject  to  any  tax  imposed  pursuant  to  the
28    authority  granted  in  this Section may reimburse themselves
29    for their seller's  tax  liability  hereunder  by  separately
30    stating such tax as an additional charge, which charge may be
31    stated  in  combination,  in  a single amount, with State tax
32    which sellers are required to collect under the Use Tax  Act,
33    pursuant  to  such  bracket  schedules  as the Department may
34    prescribe.
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 1        Whenever the Department determines that a  refund  should
 2    be made under this Section to a claimant instead of issuing a
 3    credit  memorandum,  the  Department  shall  notify the State
 4    Comptroller, who shall cause the order to be  drawn  for  the
 5    amount   specified,   and   to  the  person  named,  in  such
 6    notification from the Department.  Such refund shall be  paid
 7    by  the  State  Treasurer  out of the non-home rule municipal
 8    retailers' occupation tax fund.
 9        The Department shall forthwith  pay  over  to  the  State
10    Treasurer,  ex  officio,  as trustee, all taxes and penalties
11    collected hereunder.  On or  before  the  25th  day  of  each
12    calendar  month,  the Department shall prepare and certify to
13    the Comptroller the disbursement of stated sums of  money  to
14    named  municipalities,  the  municipalities  to be those from
15    which retailers have paid taxes or penalties hereunder to the
16    Department during the second preceding  calendar  month.  The
17    amount  to  be  paid to each municipality shall be the amount
18    (not including credit memoranda) collected  hereunder  during
19    the second preceding calendar month by the Department plus an
20    amount  the  Department determines is necessary to offset any
21    amounts which were erroneously paid  to  a  different  taxing
22    body,   and  not  including  an amount equal to the amount of
23    refunds made during the second preceding  calendar  month  by
24    the  Department  on  behalf  of  such  municipality,  and not
25    including any  amount  which  the  Department  determines  is
26    necessary  to  offset  any  amounts  which  were payable to a
27    different taxing  body  but  were  erroneously  paid  to  the
28    municipality.   Within   10   days   after  receipt,  by  the
29    Comptroller,  of  the  disbursement  certification   to   the
30    municipalities,  provided  for in this Section to be given to
31    the Comptroller by  the  Department,  the  Comptroller  shall
32    cause  the  orders  to be drawn for the respective amounts in
33    accordance   with   the   directions   contained   in    such
34    certification.
                            -4-      LRB093 07936 SJM 08127 b
 1        For  the  purpose  of  determining the local governmental
 2    unit whose tax is applicable, a retail sale, by a producer of
 3    coal or other mineral mined in Illinois, is a sale at  retail
 4    at  the  place  where  the  coal  or  other  mineral mined in
 5    Illinois is extracted from the earth.   This  paragraph  does
 6    not  apply  to  coal or other mineral when it is delivered or
 7    shipped by the seller to the purchaser  at  a  point  outside
 8    Illinois  so  that  the  sale  is  exempt  under  the Federal
 9    Constitution as a sale in interstate or foreign commerce.
10        Nothing in this Section shall be construed to authorize a
11    municipality to impose a tax upon the privilege  of  engaging
12    in  any  business  which under the constitution of the United
13    States may not be made the subject of taxation by this State.
14        When certifying the amount of a monthly disbursement to a
15    municipality  under  this  Section,  the   Department   shall
16    increase  or  decrease  such amount by an amount necessary to
17    offset  any  misallocation  of  previous  disbursements.  The
18    offset amount  shall  be  the  amount  erroneously  disbursed
19    within the previous 6 months from the time a misallocation is
20    discovered.
21        The Department of Revenue shall implement this amendatory
22    Act  of the 91st General Assembly so as to collect the tax on
23    and after January 1, 2002.
24        As used in this Section, "municipal"  and  "municipality"
25    means  a  city,  village  or  incorporated town, including an
26    incorporated town which has superseded a civil township.
27        This Section shall be known  and  may  be  cited  as  the
28    "Non-Home Rule Municipal Retailers' Occupation Tax Act".
29    (Source:  P.A.  91-51,  eff.  6-30-99;  91-649,  eff. 1-1-00;
30    92-739, eff. 1-1-03.)