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90_HB2768
55 ILCS 5/5-1006 from Ch. 34, par. 5-1006
55 ILCS 5/5-1007 from Ch. 34, par. 5-1007
65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1
65 ILCS 5/8-11-5 from Ch. 24, par. 8-11-5
65 ILCS 5/8-11-6 from Ch. 24, par. 8-11-6
In the Counties Code, amends the Home Rule County
Retailers' Occupation Tax Law and the Home Rule County
Service Occupation Tax Law. In the Illinois Municipal Code,
amends the Home Rule Municipal Retailers' Occupation Tax Act,
the Home Rule Municipal Service Occupation Tax Act, and the
Home Rule Municipal Use Tax Act. Provides that in addition
to the current filing and enforcement time period for these
taxes, an ordinance or resolution imposing, discontinuing, or
changing a tax may be filed with the Department of Revenue on
or before April 1 and shall be enforced by the Department on
the following July 1. Effective immediately.
LRB9009453PTsb
LRB9009453PTsb
1 AN ACT concerning home rule taxes.
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 Sections 5-1006 and 5-1007 as follows:
6 (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
7 Sec. 5-1006. Home Rule County Retailers' Occupation Tax
8 Law. Any county that is a home rule unit may impose a tax
9 upon all persons engaged in the business of selling tangible
10 personal property, other than an item of tangible personal
11 property titled or registered with an agency of this State's
12 government, at retail in the county on the gross receipts
13 from such sales made in the course of their business. If
14 imposed, this tax shall only be imposed in 1/4% increments.
15 On and after September 1, 1991, this additional tax may not
16 be imposed on the sales of food for human consumption which
17 is to be consumed off the premises where it is sold (other
18 than alcoholic beverages, soft drinks and food which has been
19 prepared for immediate consumption) and prescription and
20 nonprescription medicines, drugs, medical appliances and
21 insulin, urine testing materials, syringes and needles used
22 by diabetics. The tax imposed by a home rule county pursuant
23 to this Section and all civil penalties that may be assessed
24 as an incident thereof shall be collected and enforced by the
25 State Department of Revenue. The certificate of registration
26 that is issued by the Department to a retailer under the
27 Retailers' Occupation Tax Act shall permit the retailer to
28 engage in a business that is taxable under any ordinance or
29 resolution enacted pursuant to this Section without
30 registering separately with the Department under such
31 ordinance or resolution or under this Section. The
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1 Department shall have full power to administer and enforce
2 this Section; to collect all taxes and penalties due
3 hereunder; to dispose of taxes and penalties so collected in
4 the manner hereinafter provided; and to determine all rights
5 to credit memoranda arising on account of the erroneous
6 payment of tax or penalty hereunder. In the administration
7 of, and compliance with, this Section, the Department and
8 persons who are subject to this Section shall have the same
9 rights, remedies, privileges, immunities, powers and duties,
10 and be subject to the same conditions, restrictions,
11 limitations, penalties and definitions of terms, and employ
12 the same modes of procedure, as are prescribed in Sections 1,
13 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to
14 all provisions therein other than the State rate of tax), 4,
15 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b,
16 6c, 7, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation
17 Tax Act and Section 3-7 of the Uniform Penalty and Interest
18 Act, as fully as if those provisions were set forth herein.
19 No tax may be imposed by a home rule county pursuant to
20 this Section unless the county also imposes a tax at the same
21 rate pursuant to Section 5-1007.
22 Persons subject to any tax imposed pursuant to the
23 authority granted in this Section may reimburse themselves
24 for their seller's tax liability hereunder by separately
25 stating such tax as an additional charge, which charge may be
26 stated in combination, in a single amount, with State tax
27 which sellers are required to collect under the Use Tax Act,
28 pursuant to such bracket schedules as the Department may
29 prescribe.
30 Whenever the Department determines that a refund should
31 be made under this Section to a claimant instead of issuing a
32 credit memorandum, the Department shall notify the State
33 Comptroller, who shall cause the order to be drawn for the
34 amount specified and to the person named in the notification
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1 from the Department. The refund shall be paid by the State
2 Treasurer out of the home rule county retailers' occupation
3 tax fund.
4 The Department shall forthwith pay over to the State
5 Treasurer, ex officio, as trustee, all taxes and penalties
6 collected hereunder. On or before the 25th day of each
7 calendar month, the Department shall prepare and certify to
8 the Comptroller the disbursement of stated sums of money to
9 named counties, the counties to be those from which retailers
10 have paid taxes or penalties hereunder to the Department
11 during the second preceding calendar month. The amount to be
12 paid to each county shall be the amount (not including credit
13 memoranda) collected hereunder during the second preceding
14 calendar month by the Department plus an amount the
15 Department determines is necessary to offset any amounts that
16 were erroneously paid to a different taxing body, and not
17 including an amount equal to the amount of refunds made
18 during the second preceding calendar month by the Department
19 on behalf of such county, and not including any amount which
20 the Department determines is necessary to offset any amounts
21 which were payable to a different taxing body but were
22 erroneously paid to the county. Within 10 days after receipt,
23 by the Comptroller, of the disbursement certification to the
24 counties provided for in this Section to be given to the
25 Comptroller by the Department, the Comptroller shall cause
26 the orders to be drawn for the respective amounts in
27 accordance with the directions contained in the
28 certification.
29 In addition to the disbursement required by the preceding
30 paragraph, an allocation shall be made in March of each year
31 to each county that received more than $500,000 in
32 disbursements under the preceding paragraph in the preceding
33 calendar year. The allocation shall be in an amount equal to
34 the average monthly distribution made to each such county
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1 under the preceding paragraph during the preceding calendar
2 year (excluding the 2 months of highest receipts). The
3 distribution made in March of each year subsequent to the
4 year in which an allocation was made pursuant to this
5 paragraph and the preceding paragraph shall be reduced by the
6 amount allocated and disbursed under this paragraph in the
7 preceding calendar year. The Department shall prepare and
8 certify to the Comptroller for disbursement the allocations
9 made in accordance with this paragraph.
10 For the purpose of determining the local governmental
11 unit whose tax is applicable, a retail sale by a producer of
12 coal or other mineral mined in Illinois is a sale at retail
13 at the place where the coal or other mineral mined in
14 Illinois is extracted from the earth. This paragraph does
15 not apply to coal or other mineral when it is delivered or
16 shipped by the seller to the purchaser at a point outside
17 Illinois so that the sale is exempt under the United States
18 Constitution as a sale in interstate or foreign commerce.
19 Nothing in this Section shall be construed to authorize a
20 county to impose a tax upon the privilege of engaging in any
21 business which under the Constitution of the United States
22 may not be made the subject of taxation by this State.
23 An ordinance or resolution imposing or discontinuing a
24 tax hereunder or effecting a change in the rate thereof shall
25 be adopted and a certified copy thereof filed with the
26 Department on or before the first day of June, whereupon the
27 Department shall proceed to administer and enforce this
28 Section as of the first day of September next following such
29 adoption and filing. Beginning January 1, 1992, an ordinance
30 or resolution imposing or discontinuing the tax hereunder or
31 effecting a change in the rate thereof shall be adopted and a
32 certified copy thereof filed with the Department on or before
33 the first day of July, whereupon the Department shall proceed
34 to administer and enforce this Section as of the first day of
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1 October next following such adoption and filing. Beginning
2 January 1, 1993, an ordinance or resolution imposing or
3 discontinuing the tax hereunder or effecting a change in the
4 rate thereof shall be adopted and a certified copy thereof
5 filed with the Department on or before the first day of
6 October, whereupon the Department shall proceed to administer
7 and enforce this Section as of the first day of January next
8 following such adoption and filing. Upon the effective date
9 of this amendatory Act of 1998, an ordinance or resolution
10 imposing or discontinuing the tax hereunder or effecting a
11 change in the rate thereof shall (i) be adopted and a
12 certified copy thereof filed with the Department on or before
13 the first day of April, whereupon the Department shall
14 proceed to administer and enforce this Section as of the
15 first day of July next following the adoption and filing or
16 (ii) be adopted and a certified copy thereof filed with the
17 Department on or before the first day of October, whereupon
18 the Department shall proceed to administer and enforce this
19 Section as of the first day of January next following the
20 adoption and filing.
21 When certifying the amount of a monthly disbursement to a
22 county under this Section, the Department shall increase or
23 decrease such amount by an amount necessary to offset any
24 misallocation of previous disbursements. The offset amount
25 shall be the amount erroneously disbursed within the previous
26 6 months from the time a misallocation is discovered.
27 This Section shall be known and may be cited as the "Home
28 Rule County Retailers' Occupation Tax Law".
29 (Source: P.A. 86-962; 86-1028; 86-1475; 87-205; 87-895.)
30 (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
31 Sec. 5-1007. Home Rule County Service Occupation Tax Law.
32 The corporate authorities of a home rule county may impose a
33 tax upon all persons engaged, in such county, in the business
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1 of making sales of service at the same rate of tax imposed
2 pursuant to Section 5-1006 of the selling price of all
3 tangible personal property transferred by such servicemen
4 either in the form of tangible personal property or in the
5 form of real estate as an incident to a sale of service. If
6 imposed, such tax shall only be imposed in 1/4% increments.
7 On and after September 1, 1991, this additional tax may not
8 be imposed on the sales of food for human consumption which
9 is to be consumed off the premises where it is sold (other
10 than alcoholic beverages, soft drinks and food which has been
11 prepared for immediate consumption) and prescription and
12 nonprescription medicines, drugs, medical appliances and
13 insulin, urine testing materials, syringes and needles used
14 by diabetics. The tax imposed by a home rule county pursuant
15 to this Section and all civil penalties that may be assessed
16 as an incident thereof shall be collected and enforced by the
17 State Department of Revenue. The certificate of registration
18 which is issued by the Department to a retailer under the
19 Retailers' Occupation Tax Act or under the Service Occupation
20 Tax Act shall permit such registrant to engage in a business
21 which is taxable under any ordinance or resolution enacted
22 pursuant to this Section without registering separately with
23 the Department under such ordinance or resolution or under
24 this Section. The Department shall have full power to
25 administer and enforce this Section; to collect all taxes and
26 penalties due hereunder; to dispose of taxes and penalties so
27 collected in the manner hereinafter provided; and to
28 determine all rights to credit memoranda arising on account
29 of the erroneous payment of tax or penalty hereunder. In the
30 administration of, and compliance with, this Section the
31 Department and persons who are subject to this Section shall
32 have the same rights, remedies, privileges, immunities,
33 powers and duties, and be subject to the same conditions,
34 restrictions, limitations, penalties and definitions of
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1 terms, and employ the same modes of procedure, as are
2 prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
3 respect to all provisions therein other than the State rate
4 of tax), 4 (except that the reference to the State shall be
5 to the taxing county), 5, 7, 8 (except that the jurisdiction
6 to which the tax shall be a debt to the extent indicated in
7 that Section 8 shall be the taxing county), 9 (except as to
8 the disposition of taxes and penalties collected, and except
9 that the returned merchandise credit for this county tax may
10 not be taken against any State tax), 10, 11, 12 (except the
11 reference therein to Section 2b of the Retailers' Occupation
12 Tax Act), 13 (except that any reference to the State shall
13 mean the taxing county), the first paragraph of Section 15,
14 16, 17, 18, 19 and 20 of the Service Occupation Tax Act and
15 Section 3-7 of the Uniform Penalty and Interest Act, as fully
16 as if those provisions were set forth herein.
17 No tax may be imposed by a home rule county pursuant to
18 this Section unless such county also imposes a tax at the
19 same rate pursuant to Section 5-1006.
20 Persons subject to any tax imposed pursuant to the
21 authority granted in this Section may reimburse themselves
22 for their serviceman's tax liability hereunder by separately
23 stating such tax as an additional charge, which charge may be
24 stated in combination, in a single amount, with State tax
25 which servicemen are authorized to collect under the Service
26 Use Tax Act, pursuant to such bracket schedules as the
27 Department may prescribe.
28 Whenever the Department determines that a refund should
29 be made under this Section to a claimant instead of issuing
30 credit memorandum, the Department shall notify the State
31 Comptroller, who shall cause the order to be drawn for the
32 amount specified, and to the person named, in such
33 notification from the Department. Such refund shall be paid
34 by the State Treasurer out of the home rule county retailers'
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1 occupation tax fund.
2 The Department shall forthwith pay over to the State
3 Treasurer, ex-officio, as trustee, all taxes and penalties
4 collected hereunder. On or before the 25th day of each
5 calendar month, the Department shall prepare and certify to
6 the Comptroller the disbursement of stated sums of money to
7 named counties, the counties to be those from which suppliers
8 and servicemen have paid taxes or penalties hereunder to the
9 Department during the second preceding calendar month. The
10 amount to be paid to each county shall be the amount (not
11 including credit memoranda) collected hereunder during the
12 second preceding calendar month by the Department, and not
13 including an amount equal to the amount of refunds made
14 during the second preceding calendar month by the Department
15 on behalf of such county. Within 10 days after receipt, by
16 the Comptroller, of the disbursement certification to the
17 counties provided for in this Section to be given to the
18 Comptroller by the Department, the Comptroller shall cause
19 the orders to be drawn for the respective amounts in
20 accordance with the directions contained in such
21 certification.
22 In addition to the disbursement required by the preceding
23 paragraph, an allocation shall be made in each year to each
24 county which received more than $500,000 in disbursements
25 under the preceding paragraph in the preceding calendar year.
26 The allocation shall be in an amount equal to the average
27 monthly distribution made to each such county under the
28 preceding paragraph during the preceding calendar year
29 (excluding the 2 months of highest receipts). The
30 distribution made in March of each year subsequent to the
31 year in which an allocation was made pursuant to this
32 paragraph and the preceding paragraph shall be reduced by the
33 amount allocated and disbursed under this paragraph in the
34 preceding calendar year. The Department shall prepare and
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1 certify to the Comptroller for disbursement the allocations
2 made in accordance with this paragraph.
3 Nothing in this Section shall be construed to authorize a
4 county to impose a tax upon the privilege of engaging in any
5 business which under the Constitution of the United States
6 may not be made the subject of taxation by this State.
7 An ordinance or resolution imposing or discontinuing a
8 tax hereunder or effecting a change in the rate thereof shall
9 be adopted and a certified copy thereof filed with the
10 Department on or before the first day of June, whereupon the
11 Department shall proceed to administer and enforce this
12 Section as of the first day of September next following such
13 adoption and filing. Beginning January 1, 1992, an ordinance
14 or resolution imposing or discontinuing the tax hereunder or
15 effecting a change in the rate thereof shall be adopted and a
16 certified copy thereof filed with the Department on or before
17 the first day of July, whereupon the Department shall proceed
18 to administer and enforce this Section as of the first day of
19 October next following such adoption and filing. Beginning
20 January 1, 1993, an ordinance or resolution imposing or
21 discontinuing the tax hereunder or effecting a change in the
22 rate thereof shall be adopted and a certified copy thereof
23 filed with the Department on or before the first day of
24 October, whereupon the Department shall proceed to administer
25 and enforce this Section as of the first day of January next
26 following such adoption and filing. Upon the effective date
27 of this amendatory Act of 1998, an ordinance or resolution
28 imposing or discontinuing the tax hereunder or effecting a
29 change in the rate thereof shall (i) be adopted and a
30 certified copy thereof filed with the Department on or before
31 the first day of April, whereupon the Department shall
32 proceed to administer and enforce this Section as of the
33 first day of July next following the adoption and filing or
34 (ii) be adopted and a certified copy thereof filed with the
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1 Department on or before the first day of October, whereupon
2 the Department shall proceed to administer and enforce this
3 Section as of the first day of January next following the
4 adoption and filing.
5 This Section shall be known and may be cited as the "Home
6 Rule County Service Occupation Tax Law".
7 (Source: P.A. 86-962; 86-1028; 86-1475; 87-205; 87-895.)
8 Section 10. The Illinois Municipal Code is amended by
9 changing Sections 8-11-1, 8-11-5, and 8-11-6 as follows:
10 (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
11 Sec. 8-11-1. Home Rule Municipal Retailers' Occupation
12 Tax Act. The corporate authorities of a home rule
13 municipality may impose a tax upon all persons engaged in the
14 business of selling tangible personal property, other than an
15 item of tangible personal property titled or registered with
16 an agency of this State's government, at retail in the
17 municipality on the gross receipts from these sales made in
18 the course of such business. If imposed, the tax shall only
19 be imposed in 1/4% increments. On and after September 1,
20 1991, this additional tax may not be imposed on the sales of
21 food for human consumption that is to be consumed off the
22 premises where it is sold (other than alcoholic beverages,
23 soft drinks and food that has been prepared for immediate
24 consumption) and prescription and nonprescription medicines,
25 drugs, medical appliances and insulin, urine testing
26 materials, syringes and needles used by diabetics. The tax
27 imposed by a home rule municipality under this Section and
28 all civil penalties that may be assessed as an incident of
29 the tax shall be collected and enforced by the State
30 Department of Revenue. The certificate of registration that
31 is issued by the Department to a retailer under the
32 Retailers' Occupation Tax Act shall permit the retailer to
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1 engage in a business that is taxable under any ordinance or
2 resolution enacted pursuant to this Section without
3 registering separately with the Department under such
4 ordinance or resolution or under this Section. The
5 Department shall have full power to administer and enforce
6 this Section; to collect all taxes and penalties due
7 hereunder; to dispose of taxes and penalties so collected in
8 the manner hereinafter provided; and to determine all rights
9 to credit memoranda arising on account of the erroneous
10 payment of tax or penalty hereunder. In the administration
11 of, and compliance with, this Section the Department and
12 persons who are subject to this Section shall have the same
13 rights, remedies, privileges, immunities, powers and duties,
14 and be subject to the same conditions, restrictions,
15 limitations, penalties and definitions of terms, and employ
16 the same modes of procedure, as are prescribed in Sections 1,
17 1a, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all
18 provisions therein other than the State rate of tax), 2c, 3
19 (except as to the disposition of taxes and penalties
20 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
21 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
22 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
23 Penalty and Interest Act, as fully as if those provisions
24 were set forth herein.
25 No tax may be imposed by a home rule municipality under
26 this Section unless the municipality also imposes a tax at
27 the same rate under Section 8-11-5 of this Act.
28 Persons subject to any tax imposed under the authority
29 granted in this Section may reimburse themselves for their
30 seller's tax liability hereunder by separately stating that
31 tax as an additional charge, which charge may be stated in
32 combination, in a single amount, with State tax which sellers
33 are required to collect under the Use Tax Act, pursuant to
34 such bracket schedules as the Department may 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 the notification
6 from the Department. The refund shall be paid by the State
7 Treasurer out of the home rule municipal retailers'
8 occupation tax fund.
9 The Department shall immediately 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 that 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 that the Department determines is
26 necessary to offset any amounts that were payable to a
27 different taxing body but were erroneously paid to the
28 municipality. Within 10 days after receipt by the Comptroller
29 of the disbursement certification to the municipalities
30 provided for in this Section to be given to the Comptroller
31 by the Department, the Comptroller shall cause the orders to
32 be drawn for the respective amounts in accordance with the
33 directions contained in the certification.
34 In addition to the disbursement required by the preceding
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1 paragraph and in order to mitigate delays caused by
2 distribution procedures, an allocation shall, if requested,
3 be made within 10 days after January 14, 1991, and in
4 November of 1991 and each year thereafter, to each
5 municipality that received more than $500,000 during the
6 preceding fiscal year, (July 1 through June 30) whether
7 collected by the municipality or disbursed by the Department
8 as required by this Section. Within 10 days after January 14,
9 1991, participating municipalities shall notify the
10 Department in writing of their intent to participate. In
11 addition, for the initial distribution, participating
12 municipalities shall certify to the Department the amounts
13 collected by the municipality for each month under its home
14 rule occupation and service occupation tax during the period
15 July 1, 1989 through June 30, 1990. The allocation within 10
16 days after January 14, 1991, shall be in an amount equal to
17 the monthly average of these amounts, excluding the 2 months
18 of highest receipts. The monthly average for the period of
19 July 1, 1990 through June 30, 1991 will be determined as
20 follows: the amounts collected by the municipality under its
21 home rule occupation and service occupation tax during the
22 period of July 1, 1990 through September 30, 1990, plus
23 amounts collected by the Department and paid to such
24 municipality through June 30, 1991, excluding the 2 months of
25 highest receipts. The monthly average for each subsequent
26 period of July 1 through June 30 shall be an amount equal to
27 the monthly distribution made to each such municipality under
28 the preceding paragraph during this period, excluding the 2
29 months of highest receipts. The distribution made in
30 November 1991 and each year thereafter under this paragraph
31 and the preceding paragraph shall be reduced by the amount
32 allocated and disbursed under this paragraph in the preceding
33 period of July 1 through June 30. The Department shall
34 prepare and certify to the Comptroller for disbursement the
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1 allocations made in accordance with this paragraph.
2 For the purpose of determining the local governmental
3 unit whose tax is applicable, a retail sale by a producer of
4 coal or other mineral mined in Illinois is a sale at retail
5 at the place where the coal or other mineral mined in
6 Illinois is extracted from the earth. This paragraph does
7 not apply to coal or other mineral when it is delivered or
8 shipped by the seller to the purchaser at a point outside
9 Illinois so that the sale is exempt under the United States
10 Constitution as a sale in interstate or foreign commerce.
11 Nothing in this Section shall be construed to authorize a
12 municipality to impose a tax upon the privilege of engaging
13 in any business which under the Constitution of the United
14 States may not be made the subject of taxation by this State.
15 An ordinance or resolution imposing or discontinuing a
16 tax hereunder or effecting a change in the rate thereof shall
17 be adopted and a certified copy thereof filed with the
18 Department on or before the first day of June, whereupon the
19 Department shall proceed to administer and enforce this
20 Section as of the first day of September next following the
21 adoption and filing. Beginning January 1, 1992, an ordinance
22 or resolution imposing or discontinuing the tax hereunder or
23 effecting a change in the rate thereof shall be adopted and a
24 certified copy thereof filed with the Department on or before
25 the first day of July, whereupon the Department shall proceed
26 to administer and enforce this Section as of the first day of
27 October next following such adoption and filing. Beginning
28 January 1, 1993, an ordinance or resolution imposing or
29 discontinuing the tax hereunder or effecting a change in the
30 rate thereof shall be adopted and a certified copy thereof
31 filed with the Department on or before the first day of
32 October, whereupon the Department shall proceed to administer
33 and enforce this Section as of the first day of January next
34 following the adoption and filing. However, a municipality
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1 located in a county with a population in excess of 3,000,000
2 that elected to become a home rule unit at the general
3 primary election in 1994 may adopt an ordinance or resolution
4 imposing the tax under this Section and file a certified copy
5 of the ordinance or resolution with the Department on or
6 before July 1, 1994. The Department shall then proceed to
7 administer and enforce this Section as of October 1, 1994.
8 Upon the effective date of this amendatory Act of 1998, an
9 ordinance or resolution imposing or discontinuing the tax
10 hereunder or effecting a change in the rate thereof shall (i)
11 be adopted and a certified copy thereof filed with the
12 Department on or before the first day of April, whereupon the
13 Department shall proceed to administer and enforce this
14 Section as of the first day of July next following the
15 adoption and filing or (ii) be adopted and a certified copy
16 thereof filed with the Department on or before the first day
17 of October, whereupon the Department shall proceed to
18 administer and enforce this Section as of the first day of
19 January next following the adoption and filing.
20 When certifying the amount of a monthly disbursement to a
21 municipality under this Section, the Department shall
22 increase or decrease the amount by an amount necessary to
23 offset any misallocation of previous disbursements. The
24 offset amount shall be the amount erroneously disbursed
25 within the previous 6 months from the time a misallocation is
26 discovered.
27 Any unobligated balance remaining in the Municipal
28 Retailers' Occupation Tax Fund on December 31, 1989, which
29 fund was abolished by Public Act 85-1135, and all receipts of
30 municipal tax as a result of audits of liability periods
31 prior to January 1, 1990, shall be paid into the Local
32 Government Tax Fund for distribution as provided by this
33 Section prior to the enactment of Public Act 85-1135. All
34 receipts of municipal tax as a result of an assessment not
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1 arising from an audit, for liability periods prior to January
2 1, 1990, shall be paid into the Local Government Tax Fund for
3 distribution before July 1, 1990, as provided by this Section
4 prior to the enactment of Public Act 85-1135; and on and
5 after July 1, 1990, all such receipts shall be distributed as
6 provided in Section 6z-18 of the State Finance Act.
7 As used in this Section, "municipal" and "municipality"
8 means a city, village or incorporated town, including an
9 incorporated town that has superseded a civil township.
10 This Section shall be known and may be cited as the Home
11 Rule Municipal Retailers' Occupation Tax Act.
12 (Source: P.A. 87-205; 87-435; 87-895; 88-603, eff. 9-1-94.)
13 (65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
14 Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
15 Act. The corporate authorities of a home rule municipality
16 may impose a tax upon all persons engaged, in such
17 municipality, in the business of making sales of service at
18 the same rate of tax imposed pursuant to Section 8-11-1, of
19 the selling price of all tangible personal property
20 transferred by such servicemen either in the form of tangible
21 personal property or in the form of real estate as an
22 incident to a sale of service. If imposed, such tax shall
23 only be imposed in 1/4% increments. On and after September 1,
24 1991, this additional tax may not be imposed on the sales of
25 food for human consumption which is to be consumed off the
26 premises where it is sold (other than alcoholic beverages,
27 soft drinks and food which has been prepared for immediate
28 consumption) and prescription and nonprescription medicines,
29 drugs, medical appliances and insulin, urine testing
30 materials, syringes and needles used by diabetics. The tax
31 imposed by a home rule municipality pursuant to this Section
32 and all civil penalties that may be assessed as an incident
33 thereof shall be collected and enforced by the State
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1 Department of Revenue. The certificate of registration which
2 is issued by the Department to a retailer under the
3 Retailers' Occupation Tax Act or under the Service Occupation
4 Tax Act shall permit such registrant to engage in a business
5 which is taxable under any ordinance or resolution enacted
6 pursuant to this Section without registering separately with
7 the Department under such ordinance or resolution or under
8 this Section. The Department shall have full power to
9 administer and enforce this Section; to collect all taxes and
10 penalties due hereunder; to dispose of taxes and penalties so
11 collected in the manner hereinafter provided, and to
12 determine all rights to credit memoranda arising on account
13 of the erroneous payment of tax or penalty hereunder. In the
14 administration of, and compliance with, this Section the
15 Department and persons who are subject to this Section shall
16 have the same rights, remedies, privileges, immunities,
17 powers and duties, and be subject to the same conditions,
18 restrictions, limitations, penalties and definitions of
19 terms, and employ the same modes of procedure, as are
20 prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
21 respect to all provisions therein other than the State rate
22 of tax), 4 (except that the reference to the State shall be
23 to the taxing municipality), 5, 7, 8 (except that the
24 jurisdiction to which the tax shall be a debt to the extent
25 indicated in that Section 8 shall be the taxing
26 municipality), 9 (except as to the disposition of taxes and
27 penalties collected, and except that the returned merchandise
28 credit for this municipal tax may not be taken against any
29 State tax), 10, 11, 12 (except the reference therein to
30 Section 2b of the Retailers' Occupation Tax Act), 13 (except
31 that any reference to the State shall mean the taxing
32 municipality), the first paragraph of Section 15, 16, 17
33 (except that credit memoranda issued hereunder may not be
34 used to discharge any State tax liability), 18, 19 and 20 of
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1 the Service Occupation Tax Act and Section 3-7 of the Uniform
2 Penalty and Interest Act, as fully as if those provisions
3 were set forth herein.
4 No tax may be imposed by a home rule municipality
5 pursuant to this Section unless such municipality also
6 imposes a tax at the same rate pursuant to Section 8-11-1 of
7 this Act.
8 Persons subject to any tax imposed pursuant to the
9 authority granted in this Section may reimburse themselves
10 for their serviceman's tax liability hereunder by separately
11 stating such tax as an additional charge, which charge may be
12 stated in combination, in a single amount, with State tax
13 which servicemen are authorized to collect under the Service
14 Use Tax Act, pursuant to such bracket schedules as the
15 Department may prescribe.
16 Whenever the Department determines that a refund should
17 be made under this Section to a claimant instead of issuing
18 credit memorandum, the Department shall notify the State
19 Comptroller, who shall cause the order to be drawn for the
20 amount specified, and to the person named, in such
21 notification from the Department. Such refund shall be paid
22 by the State Treasurer out of the home rule municipal
23 retailers' occupation tax fund.
24 The Department shall forthwith pay over to the State
25 Treasurer, ex-officio, as trustee, all taxes and penalties
26 collected hereunder. On or before the 25th day of each
27 calendar month, the Department shall prepare and certify to
28 the Comptroller the disbursement of stated sums of money to
29 named municipalities, the municipalities to be those from
30 which suppliers and servicemen have paid taxes or penalties
31 hereunder to the Department during the second preceding
32 calendar month. The amount to be paid to each municipality
33 shall be the amount (not including credit memoranda)
34 collected hereunder during the second preceding calendar
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1 month by the Department, and not including an amount equal to
2 the amount of refunds made during the second preceding
3 calendar month by the Department on behalf of such
4 municipality. Within 10 days after receipt, by the
5 Comptroller, of the disbursement certification to the
6 municipalities, provided for in this Section to be given to
7 the Comptroller by the Department, the Comptroller shall
8 cause the orders to be drawn for the respective amounts in
9 accordance with the directions contained in such
10 certification.
11 In addition to the disbursement required by the preceding
12 paragraph and in order to mitigate delays caused by
13 distribution procedures, an allocation shall, if requested,
14 be made within 10 days after January 14, 1991, and in
15 November of 1991 and each year thereafter, to each
16 municipality that received more than $500,000 during the
17 preceding fiscal year, (July 1 through June 30) whether
18 collected by the municipality or disbursed by the Department
19 as required by this Section. Within 10 days after January 14,
20 1991, participating municipalities shall notify the
21 Department in writing of their intent to participate. In
22 addition, for the initial distribution, participating
23 municipalities shall certify to the Department the amounts
24 collected by the municipality for each month under its home
25 rule occupation and service occupation tax during the period
26 July 1, 1989 through June 30, 1990. The allocation within 10
27 days after January 14, 1991, shall be in an amount equal to
28 the monthly average of these amounts, excluding the 2 months
29 of highest receipts. Monthly average for the period of July
30 1, 1990 through June 30, 1991 will be determined as follows:
31 the amounts collected by the municipality under its home rule
32 occupation and service occupation tax during the period of
33 July 1, 1990 through September 30, 1990, plus amounts
34 collected by the Department and paid to such municipality
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1 through June 30, 1991, excluding the 2 months of highest
2 receipts. The monthly average for each subsequent period of
3 July 1 through June 30 shall be an amount equal to the
4 monthly distribution made to each such municipality under the
5 preceding paragraph during this period, excluding the 2
6 months of highest receipts. The distribution made in
7 November 1991 and each year thereafter under this paragraph
8 and the preceding paragraph shall be reduced by the amount
9 allocated and disbursed under this paragraph in the preceding
10 period of July 1 through June 30. The Department shall
11 prepare and certify to the Comptroller for disbursement the
12 allocations made in accordance with this paragraph.
13 Nothing in this Section shall be construed to authorize a
14 municipality to impose a tax upon the privilege of engaging
15 in any business which under the constitution of the United
16 States may not be made the subject of taxation by this State.
17 An ordinance or resolution imposing or discontinuing a
18 tax hereunder or effecting a change in the rate thereof shall
19 be adopted and a certified copy thereof filed with the
20 Department on or before the first day of June, whereupon the
21 Department shall proceed to administer and enforce this
22 Section as of the first day of September next following such
23 adoption and filing. Beginning January 1, 1992, an ordinance
24 or resolution imposing or discontinuing the tax hereunder or
25 effecting a change in the rate thereof shall be adopted and a
26 certified copy thereof filed with the Department on or before
27 the first day of July, whereupon the Department shall proceed
28 to administer and enforce this Section as of the first day of
29 October next following such adoption and filing. Beginning
30 January 1, 1993, an ordinance or resolution imposing or
31 discontinuing the tax hereunder or effecting a change in the
32 rate thereof shall be adopted and a certified copy thereof
33 filed with the Department on or before the first day of
34 October, whereupon the Department shall proceed to administer
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1 and enforce this Section as of the first day of January next
2 following such adoption and filing. However, a municipality
3 located in a county with a population in excess of 3,000,000
4 that elected to become a home rule unit at the general
5 primary election in 1994 may adopt an ordinance or resolution
6 imposing the tax under this Section and file a certified copy
7 of the ordinance or resolution with the Department on or
8 before July 1, 1994. The Department shall then proceed to
9 administer and enforce this Section as of October 1, 1994.
10 Upon the effective date of this amendatory Act of 1998, an
11 ordinance or resolution imposing or discontinuing the tax
12 hereunder or effecting a change in the rate thereof shall (i)
13 be adopted and a certified copy thereof filed with the
14 Department on or before the first day of April, whereupon the
15 Department shall proceed to administer and enforce this
16 Section as of the first day of July next following the
17 adoption and filing or (ii) be adopted and a certified copy
18 thereof filed with the Department on or before the first day
19 of October, whereupon the Department shall proceed to
20 administer and enforce this Section as of the first day of
21 January next following the adoption and filing.
22 Any unobligated balance remaining in the Municipal
23 Retailers' Occupation Tax Fund on December 31, 1989, which
24 fund was abolished by Public Act 85-1135, and all receipts of
25 municipal tax as a result of audits of liability periods
26 prior to January 1, 1990, shall be paid into the Local
27 Government Tax Fund, for distribution as provided by this
28 Section prior to the enactment of Public Act 85-1135. All
29 receipts of municipal tax as a result of an assessment not
30 arising from an audit, for liability periods prior to January
31 1, 1990, shall be paid into the Local Government Tax Fund for
32 distribution before July 1, 1990, as provided by this Section
33 prior to the enactment of Public Act 85-1135, and on and
34 after July 1, 1990, all such receipts shall be distributed as
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1 provided in Section 6z-18 of the State Finance Act.
2 As used in this Section, "municipal" and "municipality"
3 means a city, village or incorporated town, including an
4 incorporated town which has superseded a civil township.
5 This Section shall be known and may be cited as the Home
6 Rule Municipal Service Occupation Tax Act.
7 (Source: P.A. 87-205; 87-435; 87-895; 88-603, eff. 9-1-94.)
8 (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
9 Sec. 8-11-6. Home Rule Municipal Use Tax Act.
10 (a) The corporate authorities of a home rule
11 municipality may impose a tax upon the privilege of using, in
12 such municipality, any item of tangible personal property
13 which is purchased at retail from a retailer, and which is
14 titled or registered at a location within the corporate
15 limits of such home rule municipality with an agency of this
16 State's government, at a rate which is an increment of 1/4%
17 and based on the selling price of such tangible personal
18 property, as "selling price" is defined in the Use Tax Act.
19 In home rule municipalities with less than 2,000,000
20 inhabitants, the tax shall be collected by the municipality
21 imposing the tax from persons whose Illinois address for
22 titling or registration purposes is given as being in such
23 municipality.
24 (b) In home rule municipalities with 2,000,000 or more
25 inhabitants, the corporate authorities of the municipality
26 may additionally impose a tax beginning July 1, 1991 upon the
27 privilege of using in the municipality, any item of tangible
28 personal property, other than tangible personal property
29 titled or registered with an agency of the State's
30 government, that is purchased at retail from a retailer
31 located outside the corporate limits of the municipality, at
32 a rate that is an increment of 1/4% not to exceed 1% and
33 based on the selling price of the tangible personal property,
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1 as "selling price" is defined in the Use Tax Act. Such tax
2 shall be collected from the purchaser by the municipality
3 imposing such tax.
4 To prevent multiple home rule taxation, the use in a home
5 rule municipality of tangible personal property that is
6 acquired outside the municipality and caused to be brought
7 into the municipality by a person who has already paid a home
8 rule municipal tax in another municipality in respect to the
9 sale, purchase, or use of that property, shall be exempt to
10 the extent of the amount of the tax properly due and paid in
11 the other home rule municipality.
12 (c) If a municipality having 2,000,000 or more
13 inhabitants imposes the tax authorized by subsection (a),
14 then the tax shall be collected by the Illinois Department of
15 Revenue when the property is purchased at retail from a
16 retailer in the county in which the home rule municipality
17 imposing the tax is located, and in all contiguous counties.
18 The tax shall be remitted to the State, or an exemption
19 determination must be obtained from the Department before the
20 title or certificate of registration for the property may be
21 issued. The tax or proof of exemption may be transmitted to
22 the Department by way of the State agency with which, or
23 State officer with whom, the tangible personal property must
24 be titled or registered if the Department and that agency or
25 State officer determine that this procedure will expedite the
26 processing of applications for title or registration.
27 The Department shall have full power to administer and
28 enforce this Section to collect all taxes, penalties and
29 interest due hereunder, to dispose of taxes, penalties and
30 interest so collected in the manner hereinafter provided, and
31 determine all rights to credit memoranda or refunds arising
32 on account of the erroneous payment of tax, penalty or
33 interest hereunder. In the administration of and compliance
34 with this Section the Department and persons who are subject
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1 to this Section shall have the same rights, remedies,
2 privileges, immunities, powers and duties, and be subject to
3 the same conditions, restrictions, limitations, penalties and
4 definitions of terms, and employ the same modes of procedure
5 as are prescribed in Sections 2 (except the definition of
6 "retailer maintaining a place of business in this State"), 3
7 (except provisions pertaining to the State rate of tax, and
8 except provisions concerning collection or refunding of the
9 tax by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22
10 of the Use Tax Act, which are not inconsistent with this
11 Section, as fully as if provisions contained in those
12 Sections of the Use Tax Act were set forth herein.
13 Whenever the Department determines that a refund shall be
14 made under this Section to a claimant instead of issuing a
15 credit memorandum, the Department shall notify the State
16 Comptroller, who shall cause the order to be drawn for the
17 amount specified, and to the person named, in such
18 notification from the Department. Such refund shall be paid
19 by the State Treasurer out of the home rule municipal
20 retailers' occupation tax fund.
21 The Department shall forthwith pay over to the State
22 Treasurer, ex officio, as trustee, all taxes, penalties and
23 interest collected hereunder. On or before the 25th day of
24 each calendar month, the Department shall prepare and certify
25 to the State Comptroller the disbursement of stated sums of
26 money to named municipalities, the municipality in each
27 instance to be that municipality from which the Department
28 during the second preceding calendar month, collected
29 municipal use tax from any person whose Illinois address for
30 titling or registration purposes is given as being in such
31 municipality. The amount to be paid to each municipality
32 shall be the amount (not including credit memoranda)
33 collected hereunder during the second preceding calendar
34 month by the Department, and not including an amount equal to
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1 the amount of refunds made during the second preceding
2 calendar month by the Department on behalf of such
3 municipality, less the amount expended during the second
4 preceding month by the Department to be paid from the
5 appropriation to the Department from the Home Rule Municipal
6 Retailers' Occupation Tax Trust Fund. The appropriation to
7 cover the costs incurred by the Department in administering
8 and enforcing this Section shall not exceed 2% of the amount
9 estimated to be deposited into the Home Rule Municipal
10 Retailers' Occupation Tax Trust Fund during the fiscal year
11 for which the appropriation is made. Within 10 days after
12 receipt by the State Comptroller of the disbursement
13 certification to the municipalities provided for in this
14 Section to be given to the State Comptroller by the
15 Department, the State Comptroller shall cause the orders to
16 be drawn for the respective amounts in accordance with the
17 directions contained in that certification.
18 Any ordinance imposing or discontinuing any tax to be
19 collected and enforced by the Department under this Section
20 shall be adopted and a certified copy thereof filed with the
21 Department on or before October 1, whereupon the Department
22 of Revenue shall proceed to administer and enforce this
23 Section on behalf of the municipalities as of January 1 next
24 following such adoption and filing. Upon the effective date
25 of this amendatory Act of 1998, any ordinance imposing or
26 discontinuing any tax to be collected and enforced by the
27 Department under this Section shall (i) be adopted and a
28 certified copy thereof filed with the Department on or before
29 April 1, whereupon the Department of Revenue shall proceed to
30 administer and enforce this Section on behalf of the
31 municipalities as of July 1 next following the adoption and
32 filing or (ii) be adopted and a certified copy thereof filed
33 with the Department on or before October 1, whereupon the
34 Department of Revenue shall proceed to administer and enforce
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1 this Section on behalf of the municipalities as of January 1
2 next following the adoption and filing.
3 Nothing in this subsection (c) shall prevent a home rule
4 municipality from collecting the tax pursuant to subsection
5 (a) in any situation where such tax is not collected by the
6 Department of Revenue under this subsection (c).
7 (d) Any unobligated balance remaining in the Municipal
8 Retailers' Occupation Tax Fund on December 31, 1989, which
9 fund was abolished by Public Act 85-1135, and all receipts of
10 municipal tax as a result of audits of liability periods
11 prior to January 1, 1990, shall be paid into the Local
12 Government Tax Fund, for distribution as provided by this
13 Section prior to the enactment of Public Act 85-1135. All
14 receipts of municipal tax as a result of an assessment not
15 arising from an audit, for liability periods prior to January
16 1, 1990, shall be paid into the Local Government Tax Fund for
17 distribution before July 1, 1990, as provided by this Section
18 prior to the enactment of Public Act 85-1135, and on and
19 after July 1, 1990, all such receipts shall be distributed as
20 provided in Section 6z-18 of the State Finance Act.
21 (e) As used in this Section, "Municipal" and
22 "Municipality" means a city, village or incorporated town,
23 including an incorporated town which has superseded a civil
24 township.
25 (f) This Section shall be known and may be cited as the
26 "Home Rule Municipal Use Tax Act".
27 (Source: P.A. 90-562, eff. 12-16-97.)
28 Section 99. Effective date. This Act takes effect upon
29 becoming law.