(65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
(Text of Section before amendment by P.A. 103-592)
Sec. 8-11-1.3. Non-Home Rule Municipal Retailers' Occupation Tax Act. The corporate authorities of a non-home rule municipality may impose
a tax upon all persons engaged in the business of selling tangible
personal property, other than on an item of tangible personal property
which is titled and registered by an agency of this State's Government,
at retail in the municipality for expenditure on
public infrastructure or for property tax relief or both as defined in
Section 8-11-1.2 if approved by
referendum as provided in Section 8-11-1.1, of the gross receipts from such
sales made in the course of such business.
If the tax is approved by referendum on or after July 14, 2010 (the effective date of Public Act 96-1057), the corporate authorities of a non-home rule municipality may, until July 1, 2030, use the proceeds of the tax for expenditure on municipal operations, in addition to or in lieu of any expenditure on public infrastructure or for property tax relief. The tax imposed may not be more than 1% and may be imposed only in
1/4% increments. The tax may not be imposed on tangible personal property taxed at the 1% rate under the Retailers' Occupation Tax Act (or at the 0% rate imposed under this amendatory Act of the 102nd General Assembly). Beginning December 1, 2019, this tax is not imposed on sales of aviation fuel unless the tax revenue is expended for airport-related purposes. If a municipality does not have an airport-related purpose to which it dedicates aviation fuel tax revenue, then aviation fuel is excluded from the tax. Each municipality must comply with the certification requirements for airport-related purposes under Section 2-22 of the Retailers' Occupation Tax Act. For purposes of this Section, "airport-related purposes" has the meaning ascribed in Section 6z-20.2 of the State Finance Act. This exclusion for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the municipality.
The tax imposed by a
municipality pursuant to this Section and all civil penalties that may be
assessed as an incident thereof shall be collected and enforced by the
State Department of Revenue. The certificate of registration which is
issued by the Department to a retailer under the Retailers' Occupation Tax
Act shall permit such retailer to engage in a business which is taxable
under any ordinance or resolution enacted pursuant to
this Section without registering separately with the Department under
such ordinance or resolution or under this Section. The Department
shall have full power to administer and enforce this Section; to collect
all taxes and penalties due hereunder; to dispose of taxes and penalties
so collected in the manner hereinafter provided, and to determine all
rights to credit memoranda, arising on account of the erroneous payment
of tax or penalty hereunder. In the administration of, and compliance
with, this Section, the Department and persons who are subject to this
Section shall have the same rights, remedies, privileges, immunities,
powers and duties, and be subject to the same conditions, restrictions,
limitations, penalties and definitions of terms, and employ the same
modes of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
1f, 1i, 1j, 2 through 2-65 (in respect to all provisions therein other than
the State rate of tax), 2c, 3 (except as to the disposition of taxes and
penalties collected, and except that the retailer's discount is not allowed for taxes paid on aviation fuel that are subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the Retailers'
Occupation Tax Act and Section 3-7 of the Uniform Penalty and Interest
Act as fully as if those provisions were set forth herein.
No municipality may impose a tax under this Section unless the municipality
also imposes a tax at the same rate under Section 8-11-1.4 of this Code.
Persons subject to any tax imposed pursuant to the authority granted
in this Section may reimburse themselves for their seller's tax
liability hereunder by separately stating such tax as an additional
charge, which charge may be stated in combination, in a single amount,
with State tax which sellers are required to collect under the Use Tax
Act, pursuant to such bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be made under
this Section to a claimant instead of issuing a credit memorandum, the
Department shall notify the State Comptroller, who shall cause the
order to be drawn for the amount specified, and to the person named,
in such notification from the Department. Such refund shall be paid by
the State Treasurer out of the non-home rule municipal retailers'
occupation tax fund or the Local Government Aviation Trust Fund, as appropriate.
Except as otherwise provided, the Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected hereunder for deposit into the Non-Home Rule Municipal Retailers' Occupation Tax Fund. Taxes and penalties collected on aviation fuel sold on or after December 1, 2019, shall be immediately paid over by the Department to the State Treasurer, ex officio, as trustee, for deposit into the Local Government Aviation Trust Fund. The Department shall only pay moneys into the Local Government Aviation Trust Fund under this Section for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the municipality. As soon as possible after the first day of each month, beginning January 1, 2011, upon certification of the Department of Revenue, the Comptroller shall order transferred, and the Treasurer shall transfer, to the STAR Bonds Revenue Fund the local sales tax increment, as defined in the Innovation Development and Economy Act, collected under this Section during the second preceding calendar month for sales within a STAR bond district. After the monthly transfer to the STAR Bonds Revenue Fund, on or
before the 25th day of each calendar month, the Department shall
prepare and certify to the Comptroller the disbursement of stated sums
of money to named municipalities, the municipalities to be those from
which retailers have paid taxes or penalties hereunder to the Department
during the second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit memoranda and not including taxes and penalties collected on aviation fuel sold on or after December 1, 2019) collected
hereunder during the second preceding calendar month by the Department plus
an amount the Department determines is necessary to offset any amounts
which were erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second preceding
calendar month by the Department on behalf of such municipality, and not
including any amount which the Department determines is necessary to offset
any amounts which were payable to a different taxing body but were
erroneously paid to the municipality, and not including any amounts that are transferred to the STAR Bonds Revenue Fund, less 1.5% of the remainder, which the Department shall transfer into the Tax Compliance and Administration Fund. The Department, at the time of each monthly disbursement to the municipalities, shall prepare and certify to the State Comptroller the amount to be transferred into the Tax Compliance and Administration Fund under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by the
Department, the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained in such
certification.
For the purpose of determining the local governmental unit whose tax
is applicable, a retail sale, by a producer of coal or other mineral
mined in Illinois, is a sale at retail at the place where the coal or
other mineral mined in Illinois is extracted from the earth. This
paragraph does not apply to coal or other mineral when it is delivered
or shipped by the seller to the purchaser at a point outside Illinois so
that the sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in any
business which under the constitution of the United States may not be
made the subject of taxation by this State.
When certifying the amount of a monthly disbursement to a municipality
under this Section, the Department shall increase or decrease such amount
by an amount necessary to offset any misallocation of previous
disbursements. The offset amount shall be the amount erroneously disbursed
within the previous 6 months from the time a misallocation is discovered.
The Department of Revenue shall implement Public Act 91-649 so as to collect the tax on and after January 1, 2002.
As used in this Section, "municipal" and "municipality" mean a city,
village, or incorporated town, including an incorporated town which has
superseded a civil township.
This Section shall be known and may be cited as the Non-Home Rule
Municipal Retailers' Occupation Tax Act.
(Source: P.A. 101-10, eff. 6-5-19; 101-47, eff. 1-1-20; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
(Text of Section after amendment by P.A. 103-592) Sec. 8-11-1.3. Non-Home Rule Municipal Retailers' Occupation Tax Act. The corporate authorities of a non-home rule municipality may impose a tax upon all persons engaged in the business of selling tangible personal property, other than on an item of tangible personal property which is titled and registered by an agency of this State's Government, at retail in the municipality for expenditure on public infrastructure or for property tax relief or both as defined in Section 8-11-1.2 if approved by referendum as provided in Section 8-11-1.1, of the gross receipts from such sales made in the course of such business. If the tax is approved by referendum on or after July 14, 2010 (the effective date of Public Act 96-1057), the corporate authorities of a non-home rule municipality may, until July 1, 2030, use the proceeds of the tax for expenditure on municipal operations, in addition to or in lieu of any expenditure on public infrastructure or for property tax relief. The tax imposed may not be more than 1% and may be imposed only in 1/4% increments. The tax may not be imposed on tangible personal property taxed at the 1% rate under the Retailers' Occupation Tax Act (or at the 0% rate imposed under this amendatory Act of the 102nd General Assembly). Beginning December 1, 2019, this tax is not imposed on sales of aviation fuel unless the tax revenue is expended for airport-related purposes. If a municipality does not have an airport-related purpose to which it dedicates aviation fuel tax revenue, then aviation fuel is excluded from the tax. Each municipality must comply with the certification requirements for airport-related purposes under Section 2-22 of the Retailers' Occupation Tax Act. For purposes of this Section, "airport-related purposes" has the meaning ascribed in Section 6z-20.2 of the State Finance Act. This exclusion for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the municipality. The tax imposed by a municipality pursuant to this Section and all civil penalties that may be assessed as an incident thereof shall be collected and enforced by the State Department of Revenue. The certificate of registration which is issued by the Department to a retailer under the Retailers' Occupation Tax Act shall permit such retailer to engage in a business which is taxable under any ordinance or resolution enacted pursuant to this Section without registering separately with the Department under such ordinance or resolution or under this Section. The Department shall have full power to administer and enforce this Section; to collect all taxes and penalties due hereunder; to dispose of taxes and penalties so collected in the manner hereinafter provided, and to determine all rights to credit memoranda, arising on account of the erroneous payment of tax or penalty hereunder. In the administration of, and compliance with, this Section, the Department and persons who are subject to this Section shall have the same rights, remedies, privileges, immunities, powers and duties, and be subject to the same conditions, restrictions, limitations, penalties and definitions of terms, and employ the same modes of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions therein other than the State rate of tax), 2c, 3 (except as to the disposition of taxes and penalties collected, and except that the retailer's discount is not allowed for taxes paid on aviation fuel that are subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and Section 3-7 of the Uniform Penalty and Interest Act as fully as if those provisions were set forth herein. No municipality may impose a tax under this Section unless the municipality also imposes a tax at the same rate under Section 8-11-1.4 of this Code. If, on January 1, 2025, a unit of local government has in effect a tax under this Section, or if, after January 1, 2025, a unit of local government imposes a tax under this Section, then that tax applies to leases of tangible personal property in effect, entered into, or renewed on or after that date in the same manner as the tax under this Section and in accordance with the changes made by this amendatory Act of the 103rd General Assembly. Persons subject to any tax imposed pursuant to the authority granted in this Section may reimburse themselves for their seller's tax liability hereunder by separately stating such tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax which sellers are required to collect under the Use Tax Act, pursuant to such bracket schedules as the Department may prescribe. Whenever the Department determines that a refund should be made under this Section to a claimant instead of issuing a credit memorandum, the Department shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified, and to the person named, in such notification from the Department. Such refund shall be paid by the State Treasurer out of the non-home rule municipal retailers' occupation tax fund or the Local Government Aviation Trust Fund, as appropriate. Except as otherwise provided, the Department shall forthwith pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected hereunder for deposit into the Non-Home Rule Municipal Retailers' Occupation Tax Fund. Taxes and penalties collected on aviation fuel sold on or after December 1, 2019, shall be immediately paid over by the Department to the State Treasurer, ex officio, as trustee, for deposit into the Local Government Aviation Trust Fund. The Department shall only pay moneys into the Local Government Aviation Trust Fund under this Section for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the municipality. As soon as possible after the first day of each month, beginning January 1, 2011, upon certification of the Department of Revenue, the Comptroller shall order transferred, and the Treasurer shall transfer, to the STAR Bonds Revenue Fund the local sales tax increment, as defined in the Innovation Development and Economy Act, collected under this Section during the second preceding calendar month for sales within a STAR bond district. After the monthly transfer to the STAR Bonds Revenue Fund, on or before the 25th day of each calendar month, the Department shall prepare and certify to the Comptroller the disbursement of stated sums of money to named municipalities, the municipalities to be those from which retailers have paid taxes or penalties hereunder to the Department during the second preceding calendar month. The amount to be paid to each municipality shall be the amount (not including credit memoranda and not including taxes and penalties collected on aviation fuel sold on or after December 1, 2019) collected hereunder during the second preceding calendar month by the Department plus an amount the Department determines is necessary to offset any amounts which were erroneously paid to a different taxing body, and not including an amount equal to the amount of refunds made during the second preceding calendar month by the Department on behalf of such municipality, and not including any amount which the Department determines is necessary to offset any amounts which were payable to a different taxing body but were erroneously paid to the municipality, and not including any amounts that are transferred to the STAR Bonds Revenue Fund, less 1.5% of the remainder, which the Department shall transfer into the Tax Compliance and Administration Fund. The Department, at the time of each monthly disbursement to the municipalities, shall prepare and certify to the State Comptroller the amount to be transferred into the Tax Compliance and Administration Fund under this Section. Within 10 days after receipt, by the Comptroller, of the disbursement certification to the municipalities and the Tax Compliance and Administration Fund provided for in this Section to be given to the Comptroller by the Department, the Comptroller shall cause the orders to be drawn for the respective amounts in accordance with the directions contained in such certification. For the purpose of determining the local governmental unit whose tax is applicable, a retail sale, by a producer of coal or other mineral mined in Illinois, is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from the earth. This paragraph does not apply to coal or other mineral when it is delivered or shipped by the seller to the purchaser at a point outside Illinois so that the sale is exempt under the Federal Constitution as a sale in interstate or foreign commerce. Nothing in this Section shall be construed to authorize a municipality to impose a tax upon the privilege of engaging in any business which under the constitution of the United States may not be made the subject of taxation by this State. When certifying the amount of a monthly disbursement to a municipality under this Section, the Department shall increase or decrease such amount by an amount necessary to offset any misallocation of previous disbursements. The offset amount shall be the amount erroneously disbursed within the previous 6 months from the time a misallocation is discovered. The Department of Revenue shall implement Public Act 91-649 so as to collect the tax on and after January 1, 2002. As used in this Section, "municipal" and "municipality" mean a city, village, or incorporated town, including an incorporated town which has superseded a civil township. This Section shall be known and may be cited as the Non-Home Rule Municipal Retailers' Occupation Tax Act.(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.) |