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90_SB1565eng
55 ILCS 5/5-1006.5
Amends the Special County Occupation Tax For Public
Safety Law in the Counties Code. Provides that the results
of the election to impose the tax shall be certified by the
county clerk and filed with the Department of Revenue within
30 days of the date of election (now on or before the first
day of June). Provides that the Department will administer
the tax as of the first day of July (now January) next
following the filing. Effective immediately.
LRB9011620KDks
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1 AN ACT concerning 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, 5-1006.5, 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, 1k, 1m, 1n, 2 through 2-65 (in
14 respect to all provisions therein other than the State rate
15 of tax), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
16 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
17 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
18 Penalty and Interest Act, as fully as if those provisions
19 were set forth herein.
20 No tax may be imposed by a home rule county pursuant to
21 this Section unless the county also imposes a tax at the same
22 rate pursuant to Section 5-1007.
23 Persons subject to any tax imposed pursuant to the
24 authority granted in this Section may reimburse themselves
25 for their seller's tax liability hereunder by separately
26 stating such tax as an additional charge, which charge may be
27 stated in combination, in a single amount, with State tax
28 which sellers are required to collect under the Use Tax Act,
29 pursuant to such bracket schedules as the Department may
30 prescribe.
31 Whenever the Department determines that a refund should
32 be made under this Section to a claimant instead of issuing a
33 credit memorandum, the Department shall notify the State
34 Comptroller, who shall cause the order to be drawn for the
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1 amount specified and to the person named in the notification
2 from the Department. The refund shall be paid by the State
3 Treasurer out of the home rule county retailers' occupation
4 tax fund.
5 The Department shall forthwith pay over to the State
6 Treasurer, ex officio, as trustee, all taxes and penalties
7 collected hereunder. On or before the 25th day of each
8 calendar month, the Department shall prepare and certify to
9 the Comptroller the disbursement of stated sums of money to
10 named counties, the counties to be those from which retailers
11 have paid taxes or penalties hereunder to the Department
12 during the second preceding calendar month. The amount to be
13 paid to each county shall be the amount (not including credit
14 memoranda) collected hereunder during the second preceding
15 calendar month by the Department plus an amount the
16 Department determines is necessary to offset any amounts that
17 were erroneously paid to a different taxing body, and not
18 including an amount equal to the amount of refunds made
19 during the second preceding calendar month by the Department
20 on behalf of such county, and not including any amount which
21 the Department determines is necessary to offset any amounts
22 which were payable to a different taxing body but were
23 erroneously paid to the county. Within 10 days after receipt,
24 by the Comptroller, of the disbursement certification to the
25 counties provided for in this Section to be given to the
26 Comptroller by the Department, the Comptroller shall cause
27 the orders to be drawn for the respective amounts in
28 accordance with the directions contained in the
29 certification.
30 In addition to the disbursement required by the preceding
31 paragraph, an allocation shall be made in March of each year
32 to each county that received more than $500,000 in
33 disbursements under the preceding paragraph in the preceding
34 calendar year. The allocation shall be in an amount equal to
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1 the average monthly distribution made to each such county
2 under the preceding paragraph during the preceding calendar
3 year (excluding the 2 months of highest receipts). The
4 distribution made in March of each year subsequent to the
5 year in which an allocation was made pursuant to this
6 paragraph and the preceding paragraph shall be reduced by the
7 amount allocated and disbursed under this paragraph in the
8 preceding calendar year. The Department shall prepare and
9 certify to the Comptroller for disbursement the allocations
10 made in accordance with this paragraph.
11 For the purpose of determining the local governmental
12 unit whose tax is applicable, a retail sale by a producer of
13 coal or other mineral mined in Illinois is a sale at retail
14 at the place where the coal or other mineral mined in
15 Illinois is extracted from the earth. This paragraph does
16 not apply to coal or other mineral when it is delivered or
17 shipped by the seller to the purchaser at a point outside
18 Illinois so that the sale is exempt under the United States
19 Constitution as a sale in interstate or foreign commerce.
20 Nothing in this Section shall be construed to authorize a
21 county to impose a tax upon the privilege of engaging in any
22 business which under the Constitution of the United States
23 may not be made the subject of taxation by this State.
24 An ordinance or resolution imposing or discontinuing a
25 tax hereunder or effecting a change in the rate thereof shall
26 be adopted and a certified copy thereof filed with the
27 Department on or before the first day of June, whereupon the
28 Department shall proceed to administer and enforce this
29 Section as of the first day of September next following such
30 adoption and filing. Beginning January 1, 1992, an ordinance
31 or resolution imposing or discontinuing the tax hereunder or
32 effecting a change in the rate thereof shall be adopted and a
33 certified copy thereof filed with the Department on or before
34 the first day of July, whereupon the Department shall proceed
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1 to administer and enforce this Section as of the first day of
2 October next following such adoption and filing. Beginning
3 January 1, 1993, an ordinance or resolution imposing or
4 discontinuing the tax hereunder or effecting a change in the
5 rate thereof shall be adopted and a certified copy thereof
6 filed with the Department on or before the first day of
7 October, whereupon the Department shall proceed to administer
8 and enforce this Section as of the first day of January next
9 following such adoption and filing. Beginning April 1, 1998,
10 an ordinance or resolution imposing or discontinuing the tax
11 hereunder or effecting a change in the rate thereof shall
12 either (i) be adopted and a certified copy thereof filed with
13 the Department on or before the first day of April, whereupon
14 the Department shall proceed to administer and enforce this
15 Section as of the first day of July next following the
16 adoption and filing; or (ii) be adopted and a certified copy
17 thereof filed with the Department on or before the first day
18 of October, whereupon the Department shall proceed to
19 administer and enforce this Section as of the first day of
20 January next following the 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 5/5-1006.5)
31 Sec. 5-1006.5. Special County Retailers' Occupation Tax
32 For Public Safety.
33 (a) The county board of any county may impose a tax upon
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1 all persons engaged in the business of selling tangible
2 personal property, other than personal property titled or
3 registered with an agency of this State's government, at
4 retail in the county on the gross receipts from the sales
5 made in the course of business to provide revenue to be used
6 exclusively for public safety purposes in that county, if a
7 proposition for the tax has been submitted to the electors of
8 that county and approved by a majority of those voting on the
9 question. If imposed, this tax shall be imposed only in
10 one-quarter percent increments. By resolution, the county
11 board may order the proposition to be submitted at any
12 election. The county clerk shall certify the question to the
13 proper election authority, who shall submit the proposition
14 at an election in accordance with the general election law.
15 The proposition shall be in substantially the following
16 form:
17 "Shall (name of county) be authorized to impose a
18 public safety tax at the rate of .... upon all persons
19 engaged in the business of selling tangible personal
20 property at retail in the county on gross receipts from
21 the sales made in the course of their business to be used
22 for crime prevention, detention, and other public safety
23 purposes?"
24 Votes shall be recorded as Yes or No. If a majority of the
25 electors voting on the proposition vote in favor of it, the
26 county may impose the tax.
27 This additional tax may not be imposed on the sales of
28 food for human consumption that is to be consumed off the
29 premises where it is sold (other than alcoholic beverages,
30 soft drinks, and food which has been prepared for immediate
31 consumption) and prescription and non-prescription medicines,
32 drugs, medical appliances and insulin, urine testing
33 materials, syringes, and needles used by diabetics. The tax
34 imposed by a county under this Section and all civil
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1 penalties that may be assessed as an incident of the tax
2 shall be collected and enforced by the Illinois Department of
3 Revenue. The certificate of registration that is issued by
4 the Department to a retailer under the Retailers' Occupation
5 Tax Act shall permit the retailer to engage in a business
6 that is taxable without registering separately with the
7 Department under an ordinance or resolution under this
8 Section. The Department has full power to administer and
9 enforce this Section, to collect all taxes and penalties due
10 under this Section, to dispose of taxes and penalties so
11 collected in the manner provided in this Section, and to
12 determine all rights to credit memoranda arising on account
13 of the erroneous payment of a tax or penalty under this
14 Section. In the administration of and compliance with this
15 Section, the Department and persons who are subject to this
16 Section shall (i) have the same rights, remedies, privileges,
17 immunities, powers, and duties, (ii) be subject to the same
18 conditions, restrictions, limitations, penalties, and
19 definitions of terms, and (iii) employ the same modes of
20 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
21 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to
22 all provisions contained in those Sections other than the
23 State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except
24 provisions relating to transaction returns and quarter
25 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
26 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13
27 of the Retailers' Occupation Tax Act and Section 3-7 of the
28 Uniform Penalty and Interest Act as if those provisions were
29 set forth in this Section.
30 Persons subject to any tax imposed under the authority
31 granted in this Section may reimburse themselves for their
32 sellers' tax liability by separately stating the tax as an
33 additional charge, which charge may be stated in combination,
34 in a single amount, with State tax which sellers are required
SB1565 Engrossed -8- LRB9011620KDks
1 to collect under the Use Tax Act, pursuant to such bracketed
2 schedules as the Department may prescribe.
3 Whenever the Department determines that a refund should
4 be made under this Section to a claimant instead of issuing a
5 credit memorandum, the Department shall notify the State
6 Comptroller, who shall cause the order to be drawn for the
7 amount specified and to the person named in the notification
8 from the Department. The refund shall be paid by the State
9 Treasurer out of the County Public Safety Retailers'
10 Occupation Tax Fund.
11 (b) If a tax has been imposed under subsection (a), a
12 service occupation tax shall also be imposed at the same rate
13 upon all persons engaged, in the county, in the business of
14 making sales of service, who, as an incident to making those
15 sales of service, transfer tangible personal property within
16 the county as an incident to a sale of service. This tax may
17 not be imposed on sales of food for human consumption that is
18 to be consumed off the premises where it is sold (other than
19 alcoholic beverages, soft drinks, and food prepared for
20 immediate consumption) and prescription and non-prescription
21 medicines, drugs, medical appliances and insulin, urine
22 testing materials, syringes, and needles used by diabetics.
23 The tax imposed under this subsection and all civil penalties
24 that may be assessed as an incident thereof shall be
25 collected and enforced by the Department of Revenue. The
26 Department has full power to administer and enforce this
27 subsection; to collect all taxes and penalties due hereunder;
28 to dispose of taxes and penalties so collected in the manner
29 hereinafter provided; and to determine all rights to credit
30 memoranda arising on account of the erroneous payment of tax
31 or penalty hereunder. In the administration of, and
32 compliance with this subsection, the Department and persons
33 who are subject to this paragraph shall (i) have the same
34 rights, remedies, privileges, immunities, powers, and duties,
SB1565 Engrossed -9- LRB9011620KDks
1 (ii) be subject to the same conditions, restrictions,
2 limitations, penalties, exclusions, exemptions, and
3 definitions of terms, and (iii) employ the same modes of
4 procedure as are prescribed in Sections 1a-1, 2 (except that
5 the reference to State in the definition of supplier
6 maintaining a place of business in this State shall mean the
7 county), 2a, 2b, 2c, 3 through 3-50 (in respect to all
8 provisions therein other than the State rate of tax), 4
9 (except that the reference to the State shall be to the
10 county), 5, 7, 8 (except that the jurisdiction to which the
11 tax shall be a debt to the extent indicated in that Section 8
12 shall be the county), 9 (except as to the disposition of
13 taxes and penalties collected, and except that the returned
14 merchandise credit for this tax may not be taken against any
15 State tax), 10, 11, 12 (except the reference therein to
16 Section 2b of the Retailers' Occupation Tax Act), 13 (except
17 that any reference to the State shall mean the county), the
18 first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
19 Service Occupation Tax Act and Section 3-7 of the Uniform
20 Penalty and Interest Act, as fully as if those provisions
21 were set forth herein.
22 Persons subject to any tax imposed under the authority
23 granted in this subsection may reimburse themselves for their
24 serviceman's tax liability by separately stating the tax as
25 an additional charge, which charge may be stated in
26 combination, in a single amount, with State tax that
27 servicemen are authorized to collect under the Service Use
28 Tax Act, in accordance with such bracket schedules as the
29 Department may prescribe.
30 Whenever the Department determines that a refund should
31 be made under this subsection to a claimant instead of
32 issuing a credit memorandum, the Department shall notify the
33 State Comptroller, who shall cause the warrant to be drawn
34 for the amount specified, and to the person named, in the
SB1565 Engrossed -10- LRB9011620KDks
1 notification from the Department. The refund shall be paid
2 by the State Treasurer out of the County Public Safety
3 Retailers' Occupation Fund.
4 Nothing in this subsection shall be construed to
5 authorize the county to impose a tax upon the privilege of
6 engaging in any business which under the Constitution of the
7 United States may not be made the subject of taxation by the
8 State.
9 (c) The Department shall immediately pay over to the
10 State Treasurer, ex officio, as trustee, all taxes and
11 penalties collected under this Section to be deposited into
12 the County Public Safety Retailers' Occupation Tax Fund,
13 which shall be an unappropriated trust fund held outside of
14 the State treasury. On or before the 25th day of each
15 calendar month, the Department shall prepare and certify to
16 the Comptroller the disbursement of stated sums of money to
17 the counties from which retailers have paid taxes or
18 penalties to the Department during the second preceding
19 calendar month. The amount to be paid to each county shall
20 be the amount (not including credit memoranda) collected
21 under this Section during the second preceding calendar month
22 by the Department plus an amount the Department determines is
23 necessary to offset any amounts that were erroneously paid to
24 a different taxing body, and not including (i) an amount
25 equal to the amount of refunds made during the second
26 preceding calendar month by the Department on behalf of the
27 county and (ii) any amount that the Department determines is
28 necessary to offset any amounts that were payable to a
29 different taxing body but were erroneously paid to the
30 county. Within 10 days after receipt by the Comptroller of
31 the disbursement certification to the counties provided for
32 in this Section to be given to the Comptroller by the
33 Department, the Comptroller shall cause the orders to be
34 drawn for the respective amounts in accordance with
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1 directions contained in the certification.
2 In addition to the disbursement required by the preceding
3 paragraph, an allocation shall be made in March of each year
4 to each county that received more than $500,000 in
5 disbursements under the preceding paragraph in the preceding
6 calendar year. The allocation shall be in an amount equal to
7 the average monthly distribution made to each such county
8 under the preceding paragraph during the preceding calendar
9 year (excluding the 2 months of highest receipts). The
10 distribution made in March of each year subsequent to the
11 year in which an allocation was made pursuant to this
12 paragraph and the preceding paragraph shall be reduced by the
13 amount allocated and disbursed under this paragraph in the
14 preceding calendar year. The Department shall prepare and
15 certify to the Comptroller for disbursement the allocations
16 made in accordance with this paragraph.
17 (d) For the purpose of determining the local
18 governmental unit whose tax is applicable, a retail sale by a
19 producer of coal or another mineral mined in Illinois is a
20 sale at retail at the place where the coal or other mineral
21 mined in Illinois is extracted from the earth. This
22 paragraph does not apply to coal or another mineral when it
23 is delivered or shipped by the seller to the purchaser at a
24 point outside Illinois so that the sale is exempt under the
25 United States Constitution as a sale in interstate or foreign
26 commerce.
27 (e) Nothing in this Section shall be construed to
28 authorize a county to impose a tax upon the privilege of
29 engaging in any business that under the Constitution of the
30 United States may not be made the subject of taxation by this
31 State.
32 (e-5) If a county imposes a tax under this Section, the
33 county board may, by ordinance, discontinue or lower the rate
34 of the tax. If the county board lowers the tax rate or
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1 discontinues the tax, a referendum must be held in accordance
2 with subsection (a) of this Section in order to increase the
3 rate of the tax or to reimpose the discontinued tax.
4 (f) Beginning April 1, 1998, the results of any election
5 authorizing a proposition to impose a tax under this Section
6 or effecting a change in the rate of tax, or any ordinance
7 lowering the rate or discontinuing the tax, shall be
8 certified by the county clerk and filed with the Illinois
9 Department of Revenue either (i) on or before the first day
10 of April, whereupon the Department shall proceed to
11 administer and enforce the tax as of the first day of July
12 next following the filing; or (ii) on or before the first day
13 of October, whereupon the Department shall proceed to
14 administer and enforce the tax as of the first day of January
15 next following the filing. on or before the first day of
16 June. The Illinois Department of Revenue shall then proceed
17 to administer and enforce this Section or to lower the rate
18 or discontinue the tax, as the case may be, as of the first
19 day of January next following the filing.
20 (g) When certifying the amount of a monthly disbursement
21 to a county under this Section, the Department shall increase
22 or decrease the amounts by an amount necessary to offset any
23 miscalculation of previous disbursements. The offset amount
24 shall be the amount erroneously disbursed within the previous
25 6 months from the time a miscalculation is discovered.
26 (h) This Section may be cited as the "Special County
27 Occupation Tax For Public Safety Law".
28 (i) For purposes of this Section, "public safety"
29 includes but is not limited to fire fighting, police,
30 medical, ambulance, or other emergency services.
31 (Source: P.A. 89-107, eff. 1-1-96; 89-718, eff. 3-7-97;
32 90-190, eff. 7-24-97; 90-267, eff. 7-30-97; 90-552, eff.
33 12-12-97; 90-562, eff. 12-16-97; revised 12-30-97.)
SB1565 Engrossed -13- LRB9011620KDks
1 (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
2 Sec. 5-1007. Home Rule County Service Occupation Tax Law.
3 The corporate authorities of a home rule county may impose a
4 tax upon all persons engaged, in such county, in the business
5 of making sales of service at the same rate of tax imposed
6 pursuant to Section 5-1006 of the selling price of all
7 tangible personal property transferred by such servicemen
8 either in the form of tangible personal property or in the
9 form of real estate as an incident to a sale of service. If
10 imposed, such tax shall only be imposed in 1/4% increments.
11 On and after September 1, 1991, this additional tax may not
12 be imposed on the sales of food for human consumption which
13 is to be consumed off the premises where it is sold (other
14 than alcoholic beverages, soft drinks and food which has been
15 prepared for immediate consumption) and prescription and
16 nonprescription medicines, drugs, medical appliances and
17 insulin, urine testing materials, syringes and needles used
18 by diabetics. The tax imposed by a home rule county pursuant
19 to this Section and all civil penalties that may be assessed
20 as an incident thereof shall be collected and enforced by the
21 State Department of Revenue. The certificate of registration
22 which is issued by the Department to a retailer under the
23 Retailers' Occupation Tax Act or under the Service Occupation
24 Tax Act shall permit such registrant to engage in a business
25 which is taxable under any ordinance or resolution enacted
26 pursuant to this Section without registering separately with
27 the Department under such ordinance or resolution or under
28 this Section. The Department shall have full power to
29 administer and enforce this Section; to collect all taxes and
30 penalties due hereunder; to dispose of taxes and penalties so
31 collected in the manner hereinafter provided; and to
32 determine all rights to credit memoranda arising on account
33 of the erroneous payment of tax or penalty hereunder. In the
34 administration of, and compliance with, this Section the
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1 Department and persons who are subject to this Section shall
2 have the same rights, remedies, privileges, immunities,
3 powers and duties, and be subject to the same conditions,
4 restrictions, limitations, penalties and definitions of
5 terms, and employ the same modes of procedure, as are
6 prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
7 respect to all provisions therein other than the State rate
8 of tax), 4 (except that the reference to the State shall be
9 to the taxing county), 5, 7, 8 (except that the jurisdiction
10 to which the tax shall be a debt to the extent indicated in
11 that Section 8 shall be the taxing county), 9 (except as to
12 the disposition of taxes and penalties collected, and except
13 that the returned merchandise credit for this county tax may
14 not be taken against any State tax), 10, 11, 12 (except the
15 reference therein to Section 2b of the Retailers' Occupation
16 Tax Act), 13 (except that any reference to the State shall
17 mean the taxing county), the first paragraph of Section 15,
18 16, 17, 18, 19 and 20 of the Service Occupation Tax Act and
19 Section 3-7 of the Uniform Penalty and Interest Act, as fully
20 as if those provisions were set forth herein.
21 No tax may be imposed by a home rule county pursuant to
22 this Section unless such county also imposes a tax at the
23 same rate pursuant to Section 5-1006.
24 Persons subject to any tax imposed pursuant to the
25 authority granted in this Section may reimburse themselves
26 for their serviceman's tax liability hereunder by separately
27 stating such tax as an additional charge, which charge may be
28 stated in combination, in a single amount, with State tax
29 which servicemen are authorized to collect under the Service
30 Use Tax Act, pursuant to such bracket schedules as the
31 Department may prescribe.
32 Whenever the Department determines that a refund should
33 be made under this Section to a claimant instead of issuing
34 credit memorandum, the Department shall notify the State
SB1565 Engrossed -15- LRB9011620KDks
1 Comptroller, who shall cause the order to be drawn for the
2 amount specified, and to the person named, in such
3 notification from the Department. Such refund shall be paid
4 by the State Treasurer out of the home rule county retailers'
5 occupation tax fund.
6 The Department shall forthwith pay over to the State
7 Treasurer, ex-officio, as trustee, all taxes and penalties
8 collected hereunder. On or before the 25th day of each
9 calendar month, the Department shall prepare and certify to
10 the Comptroller the disbursement of stated sums of money to
11 named counties, the counties to be those from which suppliers
12 and servicemen have paid taxes or penalties hereunder to the
13 Department during the second preceding calendar month. The
14 amount to be paid to each county shall be the amount (not
15 including credit memoranda) collected hereunder during the
16 second preceding calendar month by the Department, 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. Within 10 days after receipt, by
20 the Comptroller, of the disbursement certification to the
21 counties provided for in this Section to be given to the
22 Comptroller by the Department, the Comptroller shall cause
23 the orders to be drawn for the respective amounts in
24 accordance with the directions contained in such
25 certification.
26 In addition to the disbursement required by the preceding
27 paragraph, an allocation shall be made in each year to each
28 county which received more than $500,000 in disbursements
29 under the preceding paragraph in the preceding calendar year.
30 The allocation shall be in an amount equal to the average
31 monthly distribution made to each such county under the
32 preceding paragraph during the preceding calendar year
33 (excluding the 2 months of highest receipts). The
34 distribution made in March of each year subsequent to the
SB1565 Engrossed -16- LRB9011620KDks
1 year in which an allocation was made pursuant to this
2 paragraph and the preceding paragraph shall be reduced by the
3 amount allocated and disbursed under this paragraph in the
4 preceding calendar year. The Department shall prepare and
5 certify to the Comptroller for disbursement the allocations
6 made in accordance with this paragraph.
7 Nothing in this Section shall be construed to authorize a
8 county to impose a tax upon the privilege of engaging in any
9 business which under the Constitution of the United States
10 may not be made the subject of taxation by this State.
11 An ordinance or resolution imposing or discontinuing a
12 tax hereunder or effecting a change in the rate thereof shall
13 be adopted and a certified copy thereof filed with the
14 Department on or before the first day of June, whereupon the
15 Department shall proceed to administer and enforce this
16 Section as of the first day of September next following such
17 adoption and filing. Beginning January 1, 1992, an ordinance
18 or resolution imposing or discontinuing the tax hereunder or
19 effecting a change in the rate thereof shall be adopted and a
20 certified copy thereof filed with the Department on or before
21 the first day of July, whereupon the Department shall proceed
22 to administer and enforce this Section as of the first day of
23 October next following such adoption and filing. Beginning
24 January 1, 1993, an ordinance or resolution imposing or
25 discontinuing the tax hereunder or effecting a change in the
26 rate thereof shall be adopted and a certified copy thereof
27 filed with the Department on or before the first day of
28 October, whereupon the Department shall proceed to administer
29 and enforce this Section as of the first day of January next
30 following such adoption and filing. Beginning April 1, 1998,
31 an ordinance or resolution imposing or discontinuing the tax
32 hereunder or effecting a change in the rate thereof shall
33 either (i) be adopted and a certified copy thereof filed with
34 the Department on or before the first day of April, whereupon
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1 the Department shall proceed to administer and enforce this
2 Section as of the first day of July next following the
3 adoption and filing; or (ii) be adopted and a certified copy
4 thereof filed with the Department on or before the first day
5 of October, whereupon the Department shall proceed to
6 administer and enforce this Section as of the first day of
7 January next following the adoption and filing.
8 This Section shall be known and may be cited as the "Home
9 Rule County Service Occupation Tax Law".
10 (Source: P.A. 86-962; 86-1028; 86-1475; 87-205; 87-895.)
11 Section 10. The Illinois Municipal Code is amended by
12 changing Sections 8-11-1, 8-11-5, and 8-11-6 as follows:
13 (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
14 Sec. 8-11-1. Home Rule Municipal Retailers' Occupation
15 Tax Act. The corporate authorities of a home rule
16 municipality may impose a tax upon all persons engaged in the
17 business of selling tangible personal property, other than an
18 item of tangible personal property titled or registered with
19 an agency of this State's government, at retail in the
20 municipality on the gross receipts from these sales made in
21 the course of such business. If imposed, the tax shall only
22 be imposed in 1/4% increments. On and after September 1,
23 1991, this additional tax may not be imposed on the sales of
24 food for human consumption that is to be consumed off the
25 premises where it is sold (other than alcoholic beverages,
26 soft drinks and food that has been prepared for immediate
27 consumption) and prescription and nonprescription medicines,
28 drugs, medical appliances and insulin, urine testing
29 materials, syringes and needles used by diabetics. The tax
30 imposed by a home rule municipality under this Section and
31 all civil penalties that may be assessed as an incident of
32 the tax shall be collected and enforced by the State
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1 Department of Revenue. The certificate of registration that
2 is issued by the Department to a retailer under the
3 Retailers' Occupation Tax Act shall permit the retailer to
4 engage in a business that is taxable under any ordinance or
5 resolution enacted pursuant to this Section without
6 registering separately with the Department under such
7 ordinance or resolution or under this Section. The
8 Department shall have full power to administer and enforce
9 this Section; to collect all taxes and penalties due
10 hereunder; to dispose of taxes and penalties so collected in
11 the manner hereinafter provided; and to determine all rights
12 to credit memoranda arising on account of the erroneous
13 payment of tax or penalty hereunder. In the administration
14 of, and compliance with, this Section the Department and
15 persons who are subject to this Section shall have the same
16 rights, remedies, privileges, immunities, powers and duties,
17 and be subject to the same conditions, restrictions,
18 limitations, penalties and definitions of terms, and employ
19 the same modes of procedure, as are prescribed in Sections 1,
20 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in
21 respect to all provisions therein other than the State rate
22 of tax), 2c, 3 (except as to the disposition of taxes and
23 penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
24 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of
25 the Retailers' Occupation Tax Act and Section 3-7 of the
26 Uniform Penalty and Interest Act, as fully as if those
27 provisions were set forth herein.
28 No tax may be imposed by a home rule municipality under
29 this Section unless the municipality also imposes a tax at
30 the same rate under Section 8-11-5 of this Act.
31 Persons subject to any tax imposed under the authority
32 granted in this Section may reimburse themselves for their
33 seller's tax liability hereunder by separately stating that
34 tax as an additional charge, which charge may be stated in
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1 combination, in a single amount, with State tax which sellers
2 are required to collect under the Use Tax Act, pursuant to
3 such bracket schedules as the Department may prescribe.
4 Whenever the Department determines that a refund should
5 be made under this Section to a claimant instead of issuing a
6 credit memorandum, the Department shall notify the State
7 Comptroller, who shall cause the order to be drawn for the
8 amount specified and to the person named in the notification
9 from the Department. The refund shall be paid by the State
10 Treasurer out of the home rule municipal retailers'
11 occupation tax fund.
12 The Department shall immediately pay over to the State
13 Treasurer, ex officio, as trustee, all taxes and penalties
14 collected hereunder. On or before the 25th day of each
15 calendar month, the Department shall prepare and certify to
16 the Comptroller the disbursement of stated sums of money to
17 named municipalities, the municipalities to be those from
18 which retailers have paid taxes or penalties hereunder to the
19 Department during the second preceding calendar month. The
20 amount to be paid to each municipality shall be the amount
21 (not including credit memoranda) collected hereunder during
22 the second preceding calendar month by the Department plus an
23 amount the Department determines is necessary to offset any
24 amounts that were erroneously paid to a different taxing
25 body, and not including an amount equal to the amount of
26 refunds made during the second preceding calendar month by
27 the Department on behalf of such municipality, and not
28 including any amount that the Department determines is
29 necessary to offset any amounts that were payable to a
30 different taxing body but were erroneously paid to the
31 municipality. Within 10 days after receipt by the Comptroller
32 of the disbursement certification to the municipalities
33 provided for in this Section to be given to the Comptroller
34 by the Department, the Comptroller shall cause the orders to
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1 be drawn for the respective amounts in accordance with the
2 directions contained in the certification.
3 In addition to the disbursement required by the preceding
4 paragraph and in order to mitigate delays caused by
5 distribution procedures, an allocation shall, if requested,
6 be made within 10 days after January 14, 1991, and in
7 November of 1991 and each year thereafter, to each
8 municipality that received more than $500,000 during the
9 preceding fiscal year, (July 1 through June 30) whether
10 collected by the municipality or disbursed by the Department
11 as required by this Section. Within 10 days after January 14,
12 1991, participating municipalities shall notify the
13 Department in writing of their intent to participate. In
14 addition, for the initial distribution, participating
15 municipalities shall certify to the Department the amounts
16 collected by the municipality for each month under its home
17 rule occupation and service occupation tax during the period
18 July 1, 1989 through June 30, 1990. The allocation within 10
19 days after January 14, 1991, shall be in an amount equal to
20 the monthly average of these amounts, excluding the 2 months
21 of highest receipts. The monthly average for the period of
22 July 1, 1990 through June 30, 1991 will be determined as
23 follows: the amounts collected by the municipality under its
24 home rule occupation and service occupation tax during the
25 period of July 1, 1990 through September 30, 1990, plus
26 amounts collected by the Department and paid to such
27 municipality through June 30, 1991, excluding the 2 months of
28 highest receipts. The monthly average for each subsequent
29 period of July 1 through June 30 shall be an amount equal to
30 the monthly distribution made to each such municipality under
31 the preceding paragraph during this period, excluding the 2
32 months of highest receipts. The distribution made in
33 November 1991 and each year thereafter under this paragraph
34 and the preceding paragraph shall be reduced by the amount
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1 allocated and disbursed under this paragraph in the preceding
2 period of July 1 through June 30. The Department shall
3 prepare and certify to the Comptroller for disbursement the
4 allocations made in accordance with this paragraph.
5 For the purpose of determining the local governmental
6 unit whose tax is applicable, a retail sale by a producer of
7 coal or other mineral mined in Illinois is a sale at retail
8 at the place where the coal or other mineral mined in
9 Illinois is extracted from the earth. This paragraph does
10 not apply to coal or other mineral when it is delivered or
11 shipped by the seller to the purchaser at a point outside
12 Illinois so that the sale is exempt under the United States
13 Constitution as a sale in interstate or foreign commerce.
14 Nothing in this Section shall be construed to authorize a
15 municipality to impose a tax upon the privilege of engaging
16 in any business which under the Constitution of the United
17 States may not be made the subject of taxation by this State.
18 An ordinance or resolution imposing or discontinuing a
19 tax hereunder or effecting a change in the rate thereof shall
20 be adopted and a certified copy thereof filed with the
21 Department on or before the first day of June, whereupon the
22 Department shall proceed to administer and enforce this
23 Section as of the first day of September next following the
24 adoption and filing. Beginning January 1, 1992, an ordinance
25 or resolution imposing or discontinuing the tax hereunder or
26 effecting a change in the rate thereof shall be adopted and a
27 certified copy thereof filed with the Department on or before
28 the first day of July, whereupon the Department shall proceed
29 to administer and enforce this Section as of the first day of
30 October next following such adoption and filing. Beginning
31 January 1, 1993, an ordinance or resolution imposing or
32 discontinuing the tax hereunder or effecting a change in the
33 rate thereof shall be adopted and a certified copy thereof
34 filed with the Department on or before the first day of
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1 October, whereupon the Department shall proceed to administer
2 and enforce this Section as of the first day of January next
3 following the adoption and filing. However, a municipality
4 located in a county with a population in excess of 3,000,000
5 that elected to become a home rule unit at the general
6 primary election in 1994 may adopt an ordinance or resolution
7 imposing the tax under this Section and file a certified copy
8 of the ordinance or resolution with the Department on or
9 before July 1, 1994. The Department shall then proceed to
10 administer and enforce this Section as of October 1, 1994.
11 Beginning April 1, 1998, an ordinance or resolution imposing
12 or discontinuing the tax hereunder or effecting a change in
13 the rate thereof shall either (i) be adopted and a certified
14 copy thereof filed with the Department on or before the first
15 day of April, whereupon the Department shall proceed to
16 administer and enforce this Section as of the first day of
17 July next following the adoption and filing; or (ii) be
18 adopted and a certified copy thereof filed with the
19 Department on or before the first day of October, whereupon
20 the Department shall proceed to administer and enforce this
21 Section as of the first day of January next following the
22 adoption and filing.
23 When certifying the amount of a monthly disbursement to a
24 municipality under this Section, the Department shall
25 increase or decrease the amount by an amount necessary to
26 offset any misallocation of previous disbursements. The
27 offset amount shall be the amount erroneously disbursed
28 within the previous 6 months from the time a misallocation is
29 discovered.
30 Any unobligated balance remaining in the Municipal
31 Retailers' Occupation Tax Fund on December 31, 1989, which
32 fund was abolished by Public Act 85-1135, and all receipts of
33 municipal tax as a result of audits of liability periods
34 prior to January 1, 1990, shall be paid into the Local
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1 Government Tax Fund for distribution as provided by this
2 Section prior to the enactment of Public Act 85-1135. All
3 receipts of municipal tax as a result of an assessment not
4 arising from an audit, for liability periods prior to January
5 1, 1990, shall be paid into the Local Government Tax Fund for
6 distribution before July 1, 1990, as provided by this Section
7 prior to the enactment of Public Act 85-1135; and on and
8 after July 1, 1990, all such receipts shall be distributed as
9 provided in Section 6z-18 of the State Finance Act.
10 As used in this Section, "municipal" and "municipality"
11 means a city, village or incorporated town, including an
12 incorporated town that has superseded a civil township.
13 This Section shall be known and may be cited as the Home
14 Rule Municipal Retailers' Occupation Tax Act.
15 (Source: P.A. 87-205; 87-435; 87-895; 88-603, eff. 9-1-94.)
16 (65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
17 Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
18 Act. The corporate authorities of a home rule municipality
19 may impose a tax upon all persons engaged, in such
20 municipality, in the business of making sales of service at
21 the same rate of tax imposed pursuant to Section 8-11-1, of
22 the selling price of all tangible personal property
23 transferred by such servicemen either in the form of tangible
24 personal property or in the form of real estate as an
25 incident to a sale of service. If imposed, such tax shall
26 only be imposed in 1/4% increments. On and after September 1,
27 1991, this additional tax may not be imposed on the sales of
28 food for human consumption which is to be consumed off the
29 premises where it is sold (other than alcoholic beverages,
30 soft drinks and food which has been prepared for immediate
31 consumption) and prescription and nonprescription medicines,
32 drugs, medical appliances and insulin, urine testing
33 materials, syringes and needles used by diabetics. The tax
SB1565 Engrossed -24- LRB9011620KDks
1 imposed by a home rule municipality pursuant to this Section
2 and all civil penalties that may be assessed as an incident
3 thereof shall be collected and enforced by the State
4 Department of Revenue. The certificate of registration which
5 is issued by the Department to a retailer under the
6 Retailers' Occupation Tax Act or under the Service Occupation
7 Tax Act shall permit such registrant to engage in a business
8 which is taxable under any ordinance or resolution enacted
9 pursuant to this Section without registering separately with
10 the Department under such ordinance or resolution or under
11 this Section. The Department shall have full power to
12 administer and enforce this Section; to collect all taxes and
13 penalties due hereunder; to dispose of taxes and penalties so
14 collected in the manner hereinafter provided, and to
15 determine all rights to credit memoranda arising on account
16 of the erroneous payment of tax or penalty hereunder. In the
17 administration of, and compliance with, this Section the
18 Department and persons who are subject to this Section shall
19 have the same rights, remedies, privileges, immunities,
20 powers and duties, and be subject to the same conditions,
21 restrictions, limitations, penalties and definitions of
22 terms, and employ the same modes of procedure, as are
23 prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
24 respect to all provisions therein other than the State rate
25 of tax), 4 (except that the reference to the State shall be
26 to the taxing municipality), 5, 7, 8 (except that the
27 jurisdiction to which the tax shall be a debt to the extent
28 indicated in that Section 8 shall be the taxing
29 municipality), 9 (except as to the disposition of taxes and
30 penalties collected, and except that the returned merchandise
31 credit for this municipal tax may not be taken against any
32 State tax), 10, 11, 12 (except the reference therein to
33 Section 2b of the Retailers' Occupation Tax Act), 13 (except
34 that any reference to the State shall mean the taxing
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1 municipality), the first paragraph of Section 15, 16, 17
2 (except that credit memoranda issued hereunder may not be
3 used to discharge any State tax liability), 18, 19 and 20 of
4 the Service Occupation Tax Act and Section 3-7 of the Uniform
5 Penalty and Interest Act, as fully as if those provisions
6 were set forth herein.
7 No tax may be imposed by a home rule municipality
8 pursuant to this Section unless such municipality also
9 imposes a tax at the same rate pursuant to Section 8-11-1 of
10 this Act.
11 Persons subject to any tax imposed pursuant to the
12 authority granted in this Section may reimburse themselves
13 for their serviceman's tax liability hereunder by separately
14 stating such tax as an additional charge, which charge may be
15 stated in combination, in a single amount, with State tax
16 which servicemen are authorized to collect under the Service
17 Use Tax Act, pursuant to such bracket schedules as the
18 Department may prescribe.
19 Whenever the Department determines that a refund should
20 be made under this Section to a claimant instead of issuing
21 credit memorandum, the Department shall notify the State
22 Comptroller, who shall cause the order to be drawn for the
23 amount specified, and to the person named, in such
24 notification from the Department. Such refund shall be paid
25 by the State Treasurer out of the home rule municipal
26 retailers' occupation tax fund.
27 The Department shall forthwith pay over to the State
28 Treasurer, ex-officio, as trustee, all taxes and penalties
29 collected hereunder. On or before the 25th day of each
30 calendar month, the Department shall prepare and certify to
31 the Comptroller the disbursement of stated sums of money to
32 named municipalities, the municipalities to be those from
33 which suppliers and servicemen have paid taxes or penalties
34 hereunder to the Department during the second preceding
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1 calendar month. The amount to be paid to each municipality
2 shall be the amount (not including credit memoranda)
3 collected hereunder during the second preceding calendar
4 month by the Department, and not including an amount equal to
5 the amount of refunds made during the second preceding
6 calendar month by the Department on behalf of such
7 municipality. Within 10 days after receipt, by the
8 Comptroller, of the disbursement certification to the
9 municipalities, provided for in this Section to be given to
10 the Comptroller by the Department, the Comptroller shall
11 cause the orders to be drawn for the respective amounts in
12 accordance with the directions contained in such
13 certification.
14 In addition to the disbursement required by the preceding
15 paragraph and in order to mitigate delays caused by
16 distribution procedures, an allocation shall, if requested,
17 be made within 10 days after January 14, 1991, and in
18 November of 1991 and each year thereafter, to each
19 municipality that received more than $500,000 during the
20 preceding fiscal year, (July 1 through June 30) whether
21 collected by the municipality or disbursed by the Department
22 as required by this Section. Within 10 days after January 14,
23 1991, participating municipalities shall notify the
24 Department in writing of their intent to participate. In
25 addition, for the initial distribution, participating
26 municipalities shall certify to the Department the amounts
27 collected by the municipality for each month under its home
28 rule occupation and service occupation tax during the period
29 July 1, 1989 through June 30, 1990. The allocation within 10
30 days after January 14, 1991, shall be in an amount equal to
31 the monthly average of these amounts, excluding the 2 months
32 of highest receipts. Monthly average for the period of July
33 1, 1990 through June 30, 1991 will be determined as follows:
34 the amounts collected by the municipality under its home rule
SB1565 Engrossed -27- LRB9011620KDks
1 occupation and service occupation tax during the period of
2 July 1, 1990 through September 30, 1990, plus amounts
3 collected by the Department and paid to such municipality
4 through June 30, 1991, excluding the 2 months of highest
5 receipts. The monthly average for each subsequent period of
6 July 1 through June 30 shall be an amount equal to the
7 monthly distribution made to each such municipality under the
8 preceding paragraph during this period, excluding the 2
9 months of highest receipts. The distribution made in
10 November 1991 and each year thereafter under this paragraph
11 and the preceding paragraph shall be reduced by the amount
12 allocated and disbursed under this paragraph in the preceding
13 period of July 1 through June 30. The Department shall
14 prepare and certify to the Comptroller for disbursement the
15 allocations made in accordance with this paragraph.
16 Nothing in this Section shall be construed to authorize a
17 municipality to impose a tax upon the privilege of engaging
18 in any business which under the constitution of the United
19 States may not be made the subject of taxation by this State.
20 An ordinance or resolution imposing or discontinuing a
21 tax hereunder or effecting a change in the rate thereof shall
22 be adopted and a certified copy thereof filed with the
23 Department on or before the first day of June, whereupon the
24 Department shall proceed to administer and enforce this
25 Section as of the first day of September next following such
26 adoption and filing. Beginning January 1, 1992, an ordinance
27 or resolution imposing or discontinuing the tax hereunder or
28 effecting a change in the rate thereof shall be adopted and a
29 certified copy thereof filed with the Department on or before
30 the first day of July, whereupon the Department shall proceed
31 to administer and enforce this Section as of the first day of
32 October next following such adoption and filing. Beginning
33 January 1, 1993, an ordinance or resolution imposing or
34 discontinuing the tax hereunder or effecting a change in the
SB1565 Engrossed -28- LRB9011620KDks
1 rate thereof shall be adopted and a certified copy thereof
2 filed with the Department on or before the first day of
3 October, whereupon the Department shall proceed to administer
4 and enforce this Section as of the first day of January next
5 following such adoption and filing. However, a municipality
6 located in a county with a population in excess of 3,000,000
7 that elected to become a home rule unit at the general
8 primary election in 1994 may adopt an ordinance or resolution
9 imposing the tax under this Section and file a certified copy
10 of the ordinance or resolution with the Department on or
11 before July 1, 1994. The Department shall then proceed to
12 administer and enforce this Section as of October 1, 1994.
13 Beginning April 1, 1998, an ordinance or resolution imposing
14 or discontinuing the tax hereunder or effecting a change in
15 the rate thereof shall either (i) be adopted and a certified
16 copy thereof filed with the Department on or before the first
17 day of April, whereupon the Department shall proceed to
18 administer and enforce this Section as of the first day of
19 July next following the adoption and filing; or (ii) be
20 adopted and a certified copy thereof filed with the
21 Department on or before the first day of October, whereupon
22 the Department shall proceed to administer and enforce this
23 Section as of the first day of January next following the
24 adoption and filing.
25 Any unobligated balance remaining in the Municipal
26 Retailers' Occupation Tax Fund on December 31, 1989, which
27 fund was abolished by Public Act 85-1135, and all receipts of
28 municipal tax as a result of audits of liability periods
29 prior to January 1, 1990, shall be paid into the Local
30 Government Tax Fund, for distribution as provided by this
31 Section prior to the enactment of Public Act 85-1135. All
32 receipts of municipal tax as a result of an assessment not
33 arising from an audit, for liability periods prior to January
34 1, 1990, shall be paid into the Local Government Tax Fund for
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1 distribution before July 1, 1990, as provided by this Section
2 prior to the enactment of Public Act 85-1135, and on and
3 after July 1, 1990, all such receipts shall be distributed as
4 provided in Section 6z-18 of the State Finance Act.
5 As used in this Section, "municipal" and "municipality"
6 means a city, village or incorporated town, including an
7 incorporated town which has superseded a civil township.
8 This Section shall be known and may be cited as the Home
9 Rule Municipal Service Occupation Tax Act.
10 (Source: P.A. 87-205; 87-435; 87-895; 88-603, eff. 9-1-94.)
11 (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
12 Sec. 8-11-6. Home Rule Municipal Use Tax Act.
13 (a) The corporate authorities of a home rule
14 municipality may impose a tax upon the privilege of using, in
15 such municipality, any item of tangible personal property
16 which is purchased at retail from a retailer, and which is
17 titled or registered at a location within the corporate
18 limits of such home rule municipality with an agency of this
19 State's government, at a rate which is an increment of 1/4%
20 and based on the selling price of such tangible personal
21 property, as "selling price" is defined in the Use Tax Act.
22 In home rule municipalities with less than 2,000,000
23 inhabitants, the tax shall be collected by the municipality
24 imposing the tax from persons whose Illinois address for
25 titling or registration purposes is given as being in such
26 municipality.
27 (b) In home rule municipalities with 2,000,000 or more
28 inhabitants, the corporate authorities of the municipality
29 may additionally impose a tax beginning July 1, 1991 upon the
30 privilege of using in the municipality, any item of tangible
31 personal property, other than tangible personal property
32 titled or registered with an agency of the State's
33 government, that is purchased at retail from a retailer
SB1565 Engrossed -30- LRB9011620KDks
1 located outside the corporate limits of the municipality, at
2 a rate that is an increment of 1/4% not to exceed 1% and
3 based on the selling price of the tangible personal property,
4 as "selling price" is defined in the Use Tax Act. Such tax
5 shall be collected from the purchaser by the municipality
6 imposing such tax.
7 To prevent multiple home rule taxation, the use in a home
8 rule municipality of tangible personal property that is
9 acquired outside the municipality and caused to be brought
10 into the municipality by a person who has already paid a home
11 rule municipal tax in another municipality in respect to the
12 sale, purchase, or use of that property, shall be exempt to
13 the extent of the amount of the tax properly due and paid in
14 the other home rule municipality.
15 (c) If a municipality having 2,000,000 or more
16 inhabitants imposes the tax authorized by subsection (a),
17 then the tax shall be collected by the Illinois Department of
18 Revenue when the property is purchased at retail from a
19 retailer in the county in which the home rule municipality
20 imposing the tax is located, and in all contiguous counties.
21 The tax shall be remitted to the State, or an exemption
22 determination must be obtained from the Department before the
23 title or certificate of registration for the property may be
24 issued. The tax or proof of exemption may be transmitted to
25 the Department by way of the State agency with which, or
26 State officer with whom, the tangible personal property must
27 be titled or registered if the Department and that agency or
28 State officer determine that this procedure will expedite the
29 processing of applications for title or registration.
30 The Department shall have full power to administer and
31 enforce this Section to collect all taxes, penalties and
32 interest due hereunder, to dispose of taxes, penalties and
33 interest so collected in the manner hereinafter provided, and
34 determine all rights to credit memoranda or refunds arising
SB1565 Engrossed -31- LRB9011620KDks
1 on account of the erroneous payment of tax, penalty or
2 interest hereunder. In the administration of and compliance
3 with this Section the Department and persons who are subject
4 to this Section shall have the same rights, remedies,
5 privileges, immunities, powers and duties, and be subject to
6 the same conditions, restrictions, limitations, penalties and
7 definitions of terms, and employ the same modes of procedure
8 as are prescribed in Sections 2 (except the definition of
9 "retailer maintaining a place of business in this State"), 3
10 (except provisions pertaining to the State rate of tax, and
11 except provisions concerning collection or refunding of the
12 tax by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22
13 of the Use Tax Act, which are not inconsistent with this
14 Section, as fully as if provisions contained in those
15 Sections of the Use Tax Act were set forth herein.
16 Whenever the Department determines that a refund shall be
17 made under this Section to a claimant instead of issuing a
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, penalties and
26 interest collected hereunder. On or before the 25th day of
27 each calendar month, the Department shall prepare and certify
28 to the State Comptroller the disbursement of stated sums of
29 money to named municipalities, the municipality in each
30 instance to be that municipality from which the Department
31 during the second preceding calendar month, collected
32 municipal use tax from any person whose Illinois address for
33 titling or registration purposes is given as being in such
34 municipality. The amount to be paid to each municipality
SB1565 Engrossed -32- LRB9011620KDks
1 shall be the amount (not including credit memoranda)
2 collected hereunder during the second preceding calendar
3 month by the Department, and not including an amount equal to
4 the amount of refunds made during the second preceding
5 calendar month by the Department on behalf of such
6 municipality, less the amount expended during the second
7 preceding month by the Department to be paid from the
8 appropriation to the Department from the Home Rule Municipal
9 Retailers' Occupation Tax Trust Fund. The appropriation to
10 cover the costs incurred by the Department in administering
11 and enforcing this Section shall not exceed 2% of the amount
12 estimated to be deposited into the Home Rule Municipal
13 Retailers' Occupation Tax Trust Fund during the fiscal year
14 for which the appropriation is made. Within 10 days after
15 receipt by the State Comptroller of the disbursement
16 certification to the municipalities provided for in this
17 Section to be given to the State Comptroller by the
18 Department, the State Comptroller shall cause the orders to
19 be drawn for the respective amounts in accordance with the
20 directions contained in that certification.
21 Any ordinance imposing or discontinuing any tax to be
22 collected and enforced by the Department under this Section
23 shall be adopted and a certified copy thereof filed with the
24 Department on or before October 1, whereupon the Department
25 of Revenue shall proceed to administer and enforce this
26 Section on behalf of the municipalities as of January 1 next
27 following such adoption and filing. Beginning April 1, 1998,
28 any ordinance imposing or discontinuing any tax to be
29 collected and enforced by the Department under this Section
30 shall either (i) be adopted and a certified copy thereof
31 filed with the Department on or before April 1, whereupon the
32 Department of Revenue shall proceed to administer and enforce
33 this Section on behalf of the municipalities as of July 1
34 next following the adoption and filing; or (ii) be adopted
SB1565 Engrossed -33- LRB9011620KDks
1 and a certified copy thereof filed with the Department on or
2 before October 1, whereupon the Department of Revenue shall
3 proceed to administer and enforce this Section on behalf of
4 the municipalities as of January 1 next following the
5 adoption and filing.
6 Nothing in this subsection (c) shall prevent a home rule
7 municipality from collecting the tax pursuant to subsection
8 (a) in any situation where such tax is not collected by the
9 Department of Revenue under this subsection (c).
10 (d) Any unobligated balance remaining in the Municipal
11 Retailers' Occupation Tax Fund on December 31, 1989, which
12 fund was abolished by Public Act 85-1135, and all receipts of
13 municipal tax as a result of audits of liability periods
14 prior to January 1, 1990, shall be paid into the Local
15 Government Tax Fund, for distribution as provided by this
16 Section prior to the enactment of Public Act 85-1135. All
17 receipts of municipal tax as a result of an assessment not
18 arising from an audit, for liability periods prior to January
19 1, 1990, shall be paid into the Local Government Tax Fund for
20 distribution before July 1, 1990, as provided by this Section
21 prior to the enactment of Public Act 85-1135, and on and
22 after July 1, 1990, all such receipts shall be distributed as
23 provided in Section 6z-18 of the State Finance Act.
24 (e) As used in this Section, "Municipal" and
25 "Municipality" means a city, village or incorporated town,
26 including an incorporated town which has superseded a civil
27 township.
28 (f) This Section shall be known and may be cited as the
29 "Home Rule Municipal Use Tax Act".
30 (Source: P.A. 90-562, eff. 12-16-97.)
31 Section 99. Effective date. This Act takes effect upon
32 becoming law.