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92_HB1921eng HB1921 Engrossed LRB9205496TAtm 1 AN ACT concerning municipalities. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Municipal Code is amended by 5 changing Sections 8-11-1.1, 8-11-1.2, 8-11-1.3, 8-11-1.4, and 6 8-11-1.5 as follows: 7 (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1) 8 Sec. 8-11-1.1. Non-home rule municipalities; imposition 9 of taxes. 10 (a) The corporate authorities of a non-home rule 11 municipality may, upon approval of the electors of the 12 municipality pursuant to subsection (b) of this Section, 13 impose by ordinance or resolution the1/2 of 1%tax 14 authorized in Sections 8-11-1.3, 8-11-1.4 and 8-11-1.5 of 15 this Act. 16 (b) The corporate authorities of the municipality may by 17 ordinance or resolution call for the submission to the 18 electors of the municipality the question of whether the 19 municipality shall impose such tax. Such question shall be 20 certified by the municipal clerk to the election authority in 21 accordance with Section 28-5 of the Election Code and shall 22 be in a form in accordance with Section 16-7 of the Election 23 Code. 24 If a majority of the electors in the municipality voting 25 upon the question vote in the affirmative, such tax shall be 26 imposed. 27 An ordinance or resolution imposing the tax of not more 28 than 1/2 of 1%taxhereunder or discontinuing the same shall 29 be adopted and a certified copy thereof, together with a 30 certification that the ordinance or resolution received 31 referendum approval in the case of the imposition of such HB1921 Engrossed -2- LRB9205496TAtm 1 tax, filed with the Department of Revenue, on or before the 2 first day of June, whereupon the Department shall proceed to 3 administer and enforce the additional tax or to discontinue 4 the tax, as the case may be, as of the first day of September 5 next following such adoption and filing. Beginning January 1, 6 1992, an ordinance or resolution imposing or discontinuing 7 the tax hereunder shall be adopted and a certified copy 8 thereof filed with the Department on or before the first day 9 of July, whereupon the Department shall proceed to administer 10 and enforce this Section as of the first day of October next 11 following such adoption and filing. Beginning January 1, 12 1993, an ordinance or resolution imposing or discontinuing 13 the tax hereunder shall be adopted and a certified copy 14 thereof filed with the Department on or before the first day 15 of October, whereupon the Department shall proceed to 16 administer and enforce this Section as of the first day of 17 January next following such adoption and filing. Beginning 18 October 1, 2001, an ordinance or resolution imposing or 19 discontinuing the tax under this Section or effecting a 20 change in the rate of tax must either (i) be adopted and a 21 certified copy of the ordinance or resolution filed with the 22 Department on or before the first day of April, whereupon the 23 Department shall proceed to administer and enforce this 24 Section as of the first day of July next following the 25 adoption and filing; or (ii) be adopted and a certified copy 26 of the ordinance or resolution filed with the Department on 27 or before the first day of October, whereupon the Department 28 shall proceed to administer and enforce this Section as of 29 the first day of January next following the adoption and 30 filing. A non-home rule municipality may file a certified 31 copy of an ordinance or resolution, with a certification that 32 the ordinance or resolution received referendum approval in 33 the case of the imposition of the tax, with the Department of 34 Revenue, as required under this Section, only after October HB1921 Engrossed -3- LRB9205496TAtm 1 2, 2000. 2 The tax authorized by this Section may not be more than 3 1/2 of 1% and may be imposed only in 1/4% increments. 4 (Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.) 5 (65 ILCS 5/8-11-1.2) (from Ch. 24, par. 8-11-1.2) 6 Sec. 8-11-1.2. Definition. As used in Sections 7 8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act:,8 (a) "Public infrastructure" means municipal roads and 9 streets, access roads, bridges, and sidewalks; waste disposal 10 systems; and water and sewer line extensions, water 11 distribution and purification facilities, storm water 12 drainage and retention facilities, and sewage treatment 13 facilities. 14 (b) "Property tax relief" means the action of a 15 municipality to reduce the levy for real estate taxes or 16 avoid an increase in the levy for real estate taxes that 17 would otherwise have been required. 18 (Source: P.A. 91-51, eff. 6-30-99.) 19 (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3) 20 Sec. 8-11-1.3. Non-Home Rule Municipal Retailers' 21 Occupation Tax Act. The corporate authorities of a non-home 22 rule municipality may impose a tax upon all persons engaged 23 in the business of selling tangible personal property, other 24 than on an item of tangible personal property which is titled 25 and registered by an agency of this State's Government, at 26 retail in the municipalityat the rate of 1/2 of 1%for 27 expenditure on public infrastructure or for property tax 28 relief or both as defined in Section 8-11-1.2 if approved by 29 referendum as provided in Section 8-11-1.1, of the gross 30 receipts from such sales made in the course of such business. 31 The tax imposed may not be more than 1/2 of 1% and may be 32 imposed only in 1/4% increments. The tax may not be imposed HB1921 Engrossed -4- LRB9205496TAtm 1 on the sale of food for human consumption that is to be 2 consumed off the premises where it is sold (other than 3 alcoholic beverages, soft drinks, and food that has been 4 prepared for immediate consumption) and prescription and 5 nonprescription medicines, drugs, medical appliances, and 6 insulin, urine testing materials, syringes, and needles used 7 by diabetics. The tax imposed by a municipality pursuant to 8 this Section and all civil penalties that may be assessed as 9 an incident thereof shall be collected and enforced by the 10 State Department of Revenue. The certificate of registration 11 which is issued by the Department to a retailer under the 12 Retailers' Occupation Tax Act shall permit such retailer to 13 engage in a business which is taxable under any ordinance or 14 resolution enacted pursuant to this Section without 15 registering separately with the Department under such 16 ordinance or resolution or under this Section. The 17 Department shall have full power to administer and enforce 18 this Section; to collect all taxes and penalties due 19 hereunder; to dispose of taxes and penalties so collected in 20 the manner hereinafter provided, and to determine all rights 21 to credit memoranda, arising on account of the erroneous 22 payment of tax or penalty hereunder. In the administration 23 of, and compliance with, this Section, the Department and 24 persons who are subject to this Section shall have the same 25 rights, remedies, privileges, immunities, powers and duties, 26 and be subject to the same conditions, restrictions, 27 limitations, penalties and definitions of terms, and employ 28 the same modes of procedure, as are prescribed in Sections 1, 29 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to 30 all provisions therein other than the State rate of tax), 2c, 31 3 (except as to the disposition of taxes and penalties 32 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 33 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the 34 Retailers' Occupation Tax Act and Section 3-7 of the Uniform HB1921 Engrossed -5- LRB9205496TAtm 1 Penalty and Interest Act as fully as if those provisions were 2 set forth herein. 3 No municipality may impose a tax under this Section 4 unless the municipality also imposes a tax at the same rate 5 under Section 8-11-1.4 of this Code. 6 Persons subject to any tax imposed pursuant to the 7 authority granted in this Section may reimburse themselves 8 for their seller's tax liability hereunder by separately 9 stating such tax as an additional charge, which charge may be 10 stated in combination, in a single amount, with State tax 11 which sellers are required to collect under the Use Tax Act, 12 pursuant to such bracket schedules as the Department may 13 prescribe. 14 Whenever the Department determines that a refund should 15 be made under this Section to a claimant instead of issuing a 16 credit memorandum, the Department shall notify the State 17 Comptroller, who shall cause the order to be drawn for the 18 amount specified, and to the person named, in such 19 notification from the Department. Such refund shall be paid 20 by the State Treasurer out of the non-home rule municipal 21 retailers' occupation tax fund. 22 The Department shall forthwith pay over to the State 23 Treasurer, ex officio, as trustee, all taxes and penalties 24 collected hereunder. On or before the 25th day of each 25 calendar month, the Department shall prepare and certify to 26 the Comptroller the disbursement of stated sums of money to 27 named municipalities, the municipalities to be those from 28 which retailers have paid taxes or penalties hereunder to the 29 Department during the second preceding calendar month. The 30 amount to be paid to each municipality shall be the amount 31 (not including credit memoranda) collected hereunder during 32 the second preceding calendar month by the Department plus an 33 amount the Department determines is necessary to offset any 34 amounts which were erroneously paid to a different taxing HB1921 Engrossed -6- LRB9205496TAtm 1 body, and not including an amount equal to the amount of 2 refunds made during the second preceding calendar month by 3 the Department on behalf of such municipality, and not 4 including any amount which the Department determines is 5 necessary to offset any amounts which were payable to a 6 different taxing body but were erroneously paid to the 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 For the purpose of determining the local governmental 15 unit whose tax is applicable, a retail sale, by a producer of 16 coal or other mineral mined in Illinois, is a sale at retail 17 at the place where the coal or other mineral mined in 18 Illinois is extracted from the earth. This paragraph does 19 not apply to coal or other mineral when it is delivered or 20 shipped by the seller to the purchaser at a point outside 21 Illinois so that the sale is exempt under the Federal 22 Constitution as a sale in interstate or foreign commerce. 23 Nothing in this Section shall be construed to authorize a 24 municipality to impose a tax upon the privilege of engaging 25 in any business which under the constitution of the United 26 States may not be made the subject of taxation by this State. 27 When certifying the amount of a monthly disbursement to a 28 municipality under this Section, the Department shall 29 increase or decrease such amount by an amount necessary to 30 offset any misallocation of previous disbursements. The 31 offset amount shall be the amount erroneously disbursed 32 within the previous 6 months from the time a misallocation is 33 discovered. 34 The Department of Revenue shall implement this amendatory HB1921 Engrossed -7- LRB9205496TAtm 1 Act of the 91st General Assembly so as to collect the tax on 2 and after January 1, 2002. 3 As used in this Section, "municipal" and "municipality" 4 means a city, village or incorporated town, including an 5 incorporated town which has superseded a civil township. 6 This Section shall be known and may be cited as the 7 "Non-Home Rule Municipal Retailers' Occupation Tax Act". 8 (Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.) 9 (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4) 10 Sec. 8-11-1.4. Non-Home Rule Municipal Service 11 Occupation Tax Act. The corporate authorities of a non-home 12 rule municipality may impose a tax upon all persons engaged, 13 in such municipality, in the business of making sales of 14 serviceat the rate of 1/2 of 1%for expenditure on public 15 infrastructure or for property tax relief or both as defined 16 in Section 8-11-1.2 if approved by referendum as provided in 17 Section 8-11-1.1, of the selling price of all tangible 18 personal property transferred by such servicemen either in 19 the form of tangible personal property or in the form of real 20 estate as an incident to a sale of service. The tax imposed 21 may not be more than 1/2 of 1% and may be imposed only in 22 1/4% increments. The tax may not be imposed on the sale of 23 food for human consumption that is to be consumed off the 24 premises where it is sold (other than alcoholic beverages, 25 soft drinks, and food that has been prepared for immediate 26 consumption) and prescription and nonprescription medicines, 27 drugs, medical appliances, and insulin, urine testing 28 materials, syringes, and needles used by diabetics. The tax 29 imposed by a municipality pursuant to this Section and all 30 civil penalties that may be assessed as an incident thereof 31 shall be collected and enforced by the State Department of 32 Revenue. The certificate of registration which is issued by 33 the Department to a retailer under the Retailers' Occupation HB1921 Engrossed -8- LRB9205496TAtm 1 Tax Act or under the Service Occupation Tax Act shall permit 2 such registrant to engage in a business which is taxable 3 under any ordinance or resolution enacted pursuant to this 4 Section without registering separately with the Department 5 under such ordinance or resolution or under this Section. The 6 Department shall have full power to administer and enforce 7 this Section; to collect all taxes and penalties due 8 hereunder; to dispose of taxes and penalties so collected in 9 the manner hereinafter provided, and to determine all rights 10 to credit memoranda arising on account of the erroneous 11 payment of tax or penalty hereunder. In the administration 12 of, and compliance with, this Section the Department and 13 persons who are subject to this Section shall have the same 14 rights, remedies, privileges, immunities, powers and duties, 15 and be subject to the same conditions, restrictions, 16 limitations, penalties and definitions of terms, and employ 17 the same modes of procedure, as are prescribed in Sections 18 1a-1, 2, 2a, 3 through 3-50 (in respect to all provisions 19 therein other than the State rate of tax), 4 (except that the 20 reference to the State shall be to the taxing municipality), 21 5, 7, 8 (except that the jurisdiction to which the tax shall 22 be a debt to the extent indicated in that Section 8 shall be 23 the taxing municipality), 9 (except as to the disposition of 24 taxes and penalties collected, and except that the returned 25 merchandise credit for this municipal tax may not be taken 26 against any State tax), 10, 11, 12 (except the reference 27 therein to Section 2b of the Retailers' Occupation Tax Act), 28 13 (except that any reference to the State shall mean the 29 taxing municipality), the first paragraph of Section 15, 16, 30 17, 18, 19 and 20 of the Service Occupation Tax Act and 31 Section 3-7 of the Uniform Penalty and Interest Act, as fully 32 as if those provisions were set forth herein. 33 No municipality may impose a tax under this Section 34 unless the municipality also imposes a tax at the same rate HB1921 Engrossed -9- LRB9205496TAtm 1 under Section 8-11-1.3 of this Code. 2 Persons subject to any tax imposed pursuant to the 3 authority granted in this Section may reimburse themselves 4 for their serviceman's tax liability hereunder by separately 5 stating such tax as an additional charge, which charge may be 6 stated in combination, in a single amount, with State tax 7 which servicemen are authorized to collect under the Service 8 Use Tax Act, pursuant to such bracket schedules as the 9 Department may prescribe. 10 Whenever the Department determines that a refund should 11 be made under this Section to a claimant instead of issuing 12 credit memorandum, the Department shall notify the State 13 Comptroller, who shall cause the order to be drawn for the 14 amount specified, and to the person named, in such 15 notification from the Department. Such refund shall be paid 16 by the State Treasurer out of the municipal retailers' 17 occupation tax fund. 18 The Department shall forthwith pay over to the State 19 Treasurer, ex officio, as trustee, all taxes and penalties 20 collected hereunder. On or before the 25th day of each 21 calendar month, the Department shall prepare and certify to 22 the Comptroller the disbursement of stated sums of money to 23 named municipalities, the municipalities to be those from 24 which suppliers and servicemen have paid taxes or penalties 25 hereunder to the Department during the second preceding 26 calendar month. The amount to be paid to each municipality 27 shall be the amount (not including credit memoranda) 28 collected hereunder during the second preceding calendar 29 month by the Department, and not including an amount equal to 30 the amount of refunds made during the second preceding 31 calendar month by the Department on behalf of such 32 municipality. Within 10 days after receipt, by the 33 Comptroller, of the disbursement certification to the 34 municipalities and the General Revenue Fund, provided for in HB1921 Engrossed -10- LRB9205496TAtm 1 this Section to be given to the Comptroller by the 2 Department, the Comptroller shall cause the orders to be 3 drawn for the respective amounts in accordance with the 4 directions contained in such certification. 5 The Department of Revenue shall implement this amendatory 6 Act of the 91st General Assembly so as to collect the tax on 7 and after January 1, 2002. 8 Nothing in this Section shall be construed to authorize a 9 municipality to impose a tax upon the privilege of engaging 10 in any business which under the constitution of the United 11 States may not be made the subject of taxation by this State. 12 As used in this Section, "municipal" or "municipality" 13 means or refers to a city, village or incorporated town, 14 including an incorporated town which has superseded a civil 15 township. 16 This Section shall be known and may be cited as the 17 "Non-Home Rule Municipal Service Occupation Tax Act". 18 (Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.) 19 (65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5) 20 Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The 21 corporate authorities of a non-home rule municipality may 22 impose a tax upon the privilege of using, in such 23 municipality, any item of tangible personal property which is 24 purchased at retail from a retailer, and which is titled or 25 registered with an agency of this State's government,at a26rate of 1/2 of 1% andbased on the selling price of such 27 tangible personal property, as "selling price" is defined in 28 the Use Tax Act, for expenditure on public infrastructure or 29 for property tax relief or both as defined in Section 30 8-11-1.2, if approved by referendum as provided in Section 31 8-11-1.1. The tax imposed may not be more than 1/2 of 1% and 32 may be imposed only in 1/4% increments. Such tax shall be 33 collected from persons whose Illinois address for title or HB1921 Engrossed -11- LRB9205496TAtm 1 registration purposes is given as being in such municipality. 2 Such tax shall be collected by the municipality imposing such 3 tax. A non-home rule municipality may not impose and collect 4 the tax prior to January 1, 2002. 5 This Section shall be known and may be cited as the 6 "Non-Home Rule Municipal Use Tax Act". 7 (Source: P.A. 91-649, eff. 1-1-00.)