Illinois General Assembly - Illinois Compiled Statutes

Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide.

Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.

55 ILCS 5/5-1014.3

(55 ILCS 5/5-1014.3)

Sec. 5-1014.3. Agreements to share or rebate occupation taxes.

(a) On and after
June 1, 2004, a county board shall not enter into
any agreement to share or
rebate any portion of
retailers' occupation taxes generated by retail sales of tangible personal
property if: (1) the tax on those retail sales, absent the agreement,
would have been paid to another unit of local government; and (2) the retailer
maintains, within that other unit of local government, a retail
location from which the tangible personal property is delivered to purchasers,
or a warehouse from which the tangible personal property is delivered to
purchasers. Any unit of local government denied
retailers' occupation tax revenue because of an agreement that violates this
Section may file an action in circuit court against only the county.
Any agreement entered into prior to
June 1,
2004 is not affected by this amendatory Act of the 93rd General Assembly.
Any unit of local
government that prevails in the circuit court action is entitled to damages in
the amount of the tax revenue it was denied as a result of the agreement,
statutory interest, costs, reasonable attorney's fees, and an amount equal to
50% of the tax.

(b) On and after the effective date of this amendatory Act of the 93rd
General Assembly, a home rule unit shall not enter into any agreement
prohibited
by this Section. This Section is a denial and limitation of home rule powers
and
functions under subsection (g) of Section 6 of Article VII of the Illinois
Constitution.

(c) Any county that enters into an agreement to share or
rebate any portion of
retailers' occupation taxes generated by retail sales of tangible personal
property must complete and submit a report by electronic filing to the Department of Revenue within 30 days after the execution of the agreement. Any county that has entered into such an agreement before the effective date of this amendatory Act of the 97th General Assembly that has not been terminated or expired as of the effective date of this amendatory Act of the 97th General Assembly shall submit a report with respect to the agreements within 90 days after the effective date of this amendatory Act of the 97th General Assembly.

Any agreement entered into after the effective date of this amendatory Act of the 98th General Assembly is not valid until the county entering into the agreement complies with the requirements set forth in this subsection. Any county that fails to comply with the requirements set forth in this subsection within 30 days after the execution of the agreement shall be responsible for paying to the Department of Revenue a delinquency penalty of $20 per day for each day the county fails to submit a report by electronic filing to the Department of Revenue.  A county that has previously failed to report an agreement in effect on the effective date of this subsection will begin to accrue a delinquency penalty for each day the agreement remains unreported beginning on the effective date of this subsection.  The Department of Revenue may adopt rules to implement and administer these penalties.

(d) The report described in this Section shall be made on a form to be supplied by the Department of Revenue and shall contain the following:

(1) the names of the county and the business entering

into the agreement;

(2) the location or locations of the business within

the county;

(3) a statement, to be answered in the affirmative or

negative, as to whether or not the company maintains additional places of business in the State other than those described pursuant to paragraph (2);

(4) the terms of the agreement, including (i) the

manner in which the amount of any retailers' occupation tax to be shared, rebated, or refunded is to be determined each year for the duration of the agreement, (ii) the duration of the agreement, and (iii) the name of any business who is not a party to the agreement but who directly or indirectly receives a share, refund, or rebate of the retailers' occupation tax; and

(5) a copy of the agreement to share or rebate any

portion of retailers' occupation taxes generated by retail sales of tangible personal property.

    An updated report must be filed by the county within 30 days after the execution of any amendment made to an agreement.
    Reports filed with the Department pursuant to this Section shall not constitute tax returns.

(e) The Department and the county shall redact the sales figures, the amount of sales tax collected, and the amount of sales tax rebated prior to disclosure of information contained in a report required by this Section or the Freedom of Information Act.  The information redacted shall be exempt from the provisions of the Freedom of Information Act.

(f) All reports, except the copy of the agreement, required to be filed with the Department of Revenue pursuant to this Section shall be posted on the Department's website within 6 months after the effective date of this amendatory Act of the 97th General Assembly. The website shall be updated on a monthly basis to include newly received reports.

(Source: P.A. 97-976, eff. 1-1-13; 98-463, eff. 8-16-13; 98-1098, eff. 8-26-14.)