Illinois General Assembly - Illinois Compiled Statutes

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65 ILCS 5/8-11-6

(65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)

Sec. 8-11-6. Home Rule Municipal Use Tax Act.

(a) The corporate authorities of a home rule municipality may
impose a tax upon the privilege of using, in such municipality, any item of
tangible personal property which is purchased at retail from a retailer, and
which is titled or registered at a location within the corporate limits of
such home rule municipality with an agency of this State's government, at a
rate which is an increment of 1/4% and based on the selling price of such
tangible personal property, as "selling price" is defined in the Use Tax
Act. In home rule municipalities with less than 2,000,000 inhabitants, the
tax shall be collected by the municipality imposing the tax from persons
whose Illinois address for titling or registration purposes is given as
being in such municipality.

(b) In home rule municipalities with 2,000,000 or more inhabitants, the
corporate authorities of the municipality may additionally impose a tax
beginning July 1, 1991 upon the privilege of using in the
municipality, any item of tangible personal property, other than tangible
personal property titled or registered with an agency of the State's
government, that is purchased at retail from a retailer located outside the
corporate limits of the municipality, 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, as "selling price" is defined in the Use Tax Act.  Such
tax shall be collected from the purchaser either by the municipality imposing
such tax or by the Department of Revenue pursuant to an agreement between the
Department and the municipality.

To prevent multiple home rule taxation, the use in a home rule
municipality of tangible personal property that is acquired outside the
municipality and caused to be brought into the municipality by a person who
has already paid a home rule municipal tax in another municipality in
respect to the sale, purchase, or use of that property, shall be exempt to
the extent of the amount of the tax properly due and paid in the other home
rule municipality.

(c) If a municipality having 2,000,000 or more inhabitants imposes the
tax authorized by subsection (a),
then the tax shall be collected by the Illinois Department of Revenue when
the property is purchased at retail from a retailer in the county in which
the home rule municipality imposing the tax is located, and in all
contiguous counties.  The tax shall be remitted to the State, or an
exemption determination must be obtained from the Department before the
title or certificate of registration for the property may be issued.  The
tax or proof of exemption may be transmitted to the Department by way of
the State agency with which, or State officer with whom, the tangible
personal property must be titled or registered if the Department and that
agency or State officer determine that this procedure will expedite the
processing of applications for title or registration.

The Department shall have full power to administer and enforce this
Section to collect all taxes, penalties and interest due hereunder, to
dispose of taxes, penalties and interest so collected in the manner
hereinafter provided, and determine all rights to credit memoranda or
refunds arising on account of the erroneous payment of tax, penalty or
interest 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 2 (except the definition of "retailer maintaining a
place of business in this State"), 3 (except provisions pertaining to the
State rate of tax, and except provisions concerning collection or refunding
of the tax by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22 of the Use Tax Act, which are not inconsistent with
this Section, as fully as if provisions contained in those Sections of the
Use Tax Act were set forth herein.

Whenever the Department determines that a refund shall 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 home rule municipal retailers' occupation tax fund.

The Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes, penalties and interest collected hereunder.
 On or before the 25th day of each calendar month, the Department shall
prepare and certify to the State Comptroller the disbursement of stated
sums of money to named municipalities, the municipality in each instance to
be that municipality from which the Department during the second preceding
calendar month, collected municipal use tax from any person whose Illinois
address for titling or registration purposes is given as being in such
municipality.  The amount to be paid to each
municipality shall be the amount (not including credit memoranda) collected
hereunder during the second preceding calendar month by the Department, 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, less 2% of the balance, which sum shall be retained by the State Treasurer to cover the costs incurred by the Department in administering and enforcing the provisions of this Section.  The Department, at the time of each monthly disbursement to the municipalities, shall prepare and certify to the Comptroller the amount so retained by the State Treasurer, which shall be transferred into the Tax Compliance and Administration Fund.  Within 10 days
after receipt by the State Comptroller of the disbursement certification to
the municipalities provided for in this Section to be given to the State
Comptroller by the Department,
the State Comptroller shall cause the orders to be drawn for the respective
amounts in accordance with the directions contained in that certification.

Any ordinance imposing or discontinuing any tax to be collected and
enforced by the Department under this Section shall
be adopted and a certified copy thereof filed with the Department on or
before October 1, whereupon the Department of Revenue shall proceed to
administer and enforce this Section on behalf of the municipalities as of
January 1 next following such adoption and filing.  Beginning April 1, 1998,
any ordinance imposing or discontinuing any tax to be collected and enforced
by the Department under this Section shall either (i) be adopted and a
certified copy thereof filed with the Department on or before April 1,
whereupon the Department of Revenue shall proceed to administer and enforce
this Section on behalf of the municipalities as of July 1 next following the
adoption and filing; or (ii) be adopted and a certified copy thereof filed
with the Department on or before October 1, whereupon the Department of
Revenue shall proceed to administer and enforce this Section on behalf of
the municipalities as of January 1 next following the adoption and filing.

Nothing in this subsection (c) shall prevent a home rule municipality
from collecting the tax pursuant to subsection (a) in any situation where
such tax is not collected by the Department of Revenue under this subsection
(c).

(d) Any unobligated balance remaining in the Municipal Retailers'
Occupation Tax Fund on December 31, 1989, which fund was abolished by Public
Act 85-1135, and all receipts of municipal tax as a result of audits of
liability periods prior to January 1, 1990, shall be paid into the Local
Government Tax Fund, for distribution as provided by this Section prior to
the enactment of Public Act 85-1135. All receipts of municipal tax as a
result of an assessment not arising from an audit, for liability periods
prior to January 1, 1990, shall be paid into the Local Government Tax Fund
for distribution before July 1, 1990, as provided by this Section prior to
the enactment of Public Act 85-1135, and on and after July 1, 1990, all
such receipts shall be distributed as provided in Section 6z-18 of the
State Finance Act.

(e) As used in this Section, "Municipal" and "Municipality" means a city,
village or incorporated town, including an incorporated town which has
superseded a civil township.

(f) This Section shall be known and may be cited as the Home Rule
Municipal Use Tax Act.

(Source: P.A. 98-1049, eff. 8-25-14.)