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92_SB2037eng SB2037 Engrossed LRB9212648BDdvA 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 SB2037 Engrossed -2- LRB9212648BDdvA 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, 2002, 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 SB2037 Engrossed -3- LRB9212648BDdvA 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. Property tax relief or 18 the avoidance of property tax must uniformly apply to all 19 classes of property. 20 (Source: P.A. 91-51, eff. 6-30-99.) 21 (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3) 22 Sec. 8-11-1.3. Non-Home Rule Municipal Retailers' 23 Occupation Tax Act. The corporate authorities of a non-home 24 rule municipality may impose a tax upon all persons engaged 25 in the business of selling tangible personal property, other 26 than on an item of tangible personal property which is titled 27 and registered by an agency of this State's Government, at 28 retail in the municipalityat the rate of 1/2 of 1%for 29 expenditure on public infrastructure or for property tax 30 relief or both as defined in Section 8-11-1.2 if approved by 31 referendum as provided in Section 8-11-1.1, of the gross 32 receipts from such sales made in the course of such business. SB2037 Engrossed -4- LRB9212648BDdvA 1 The tax imposed may not be more than 1/2 of 1% and may be 2 imposed only in 1/4% increments. The tax may not be imposed 3 on the sale of food for human consumption that is to be 4 consumed off the premises where it is sold (other than 5 alcoholic beverages, soft drinks, and food that has been 6 prepared for immediate consumption) and prescription and 7 nonprescription medicines, drugs, medical appliances, and 8 insulin, urine testing materials, syringes, and needles used 9 by diabetics. The tax imposed by a municipality pursuant to 10 this Section and all civil penalties that may be assessed as 11 an incident thereof shall be collected and enforced by the 12 State Department of Revenue. The certificate of registration 13 which is issued by the Department to a retailer under the 14 Retailers' Occupation Tax Act shall permit such retailer to 15 engage in a business which is taxable under any ordinance or 16 resolution enacted pursuant to this Section without 17 registering separately with the Department under such 18 ordinance or resolution or under this Section. The 19 Department shall have full power to administer and enforce 20 this Section; to collect all taxes and penalties due 21 hereunder; to dispose of taxes and penalties so collected in 22 the manner hereinafter provided, and to determine all rights 23 to credit memoranda, arising on account of the erroneous 24 payment of tax or penalty hereunder. In the administration 25 of, and compliance with, this Section, the Department and 26 persons who are subject to this Section shall have the same 27 rights, remedies, privileges, immunities, powers and duties, 28 and be subject to the same conditions, restrictions, 29 limitations, penalties and definitions of terms, and employ 30 the same modes of procedure, as are prescribed in Sections 1, 31 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to 32 all provisions therein other than the State rate of tax), 2c, 33 3 (except as to the disposition of taxes and penalties 34 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, SB2037 Engrossed -5- LRB9212648BDdvA 1 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the 2 Retailers' Occupation Tax Act and Section 3-7 of the Uniform 3 Penalty and Interest Act as fully as if those provisions were 4 set forth herein. 5 No municipality may impose a tax under this Section 6 unless the municipality also imposes a tax at the same rate 7 under Section 8-11-1.4 of this Code. 8 Persons subject to any tax imposed pursuant to the 9 authority granted in this Section may reimburse themselves 10 for their seller'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 sellers are required to collect under the Use Tax Act, 14 pursuant to such bracket schedules as the Department may 15 prescribe. 16 Whenever the Department determines that a refund should 17 be 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 non-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 retailers have paid taxes or penalties hereunder to the 31 Department during the second preceding calendar month. The 32 amount to be paid to each municipality shall be the amount 33 (not including credit memoranda) collected hereunder during 34 the second preceding calendar month by the Department plus an SB2037 Engrossed -6- LRB9212648BDdvA 1 amount the Department determines is necessary to offset any 2 amounts which were erroneously paid to a different taxing 3 body, and not including an amount equal to the amount of 4 refunds made during the second preceding calendar month by 5 the Department on behalf of such municipality, and not 6 including any amount which the Department determines is 7 necessary to offset any amounts which were payable to a 8 different taxing body but were erroneously paid to the 9 municipality. Within 10 days after receipt, by the 10 Comptroller, of the disbursement certification to the 11 municipalities, provided for in this Section to be given to 12 the Comptroller by the Department, the Comptroller shall 13 cause the orders to be drawn for the respective amounts in 14 accordance with the directions contained in such 15 certification. 16 For the purpose of determining the local governmental 17 unit whose tax is applicable, a retail sale, by a producer of 18 coal or other mineral mined in Illinois, is a sale at retail 19 at the place where the coal or other mineral mined in 20 Illinois is extracted from the earth. This paragraph does 21 not apply to coal or other mineral when it is delivered or 22 shipped by the seller to the purchaser at a point outside 23 Illinois so that the sale is exempt under the Federal 24 Constitution as a sale in interstate or foreign commerce. 25 Nothing in this Section shall be construed to authorize a 26 municipality to impose a tax upon the privilege of engaging 27 in any business which under the constitution of the United 28 States may not be made the subject of taxation by this State. 29 When certifying the amount of a monthly disbursement to a 30 municipality under this Section, the Department shall 31 increase or decrease such amount by an amount necessary to 32 offset any misallocation of previous disbursements. The 33 offset amount shall be the amount erroneously disbursed 34 within the previous 6 months from the time a misallocation is SB2037 Engrossed -7- LRB9212648BDdvA 1 discovered. 2 The Department of Revenue shall implement this amendatory 3 Act of the 91st General Assembly so as to collect the tax on 4 and after January 1, 2002. 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 9 "Non-Home Rule Municipal Retailers' Occupation Tax Act". 10 (Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.) 11 (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4) 12 Sec. 8-11-1.4. Non-Home Rule Municipal Service 13 Occupation Tax Act. The corporate authorities of a non-home 14 rule municipality may impose a tax upon all persons engaged, 15 in such municipality, in the business of making sales of 16 serviceat the rate of 1/2 of 1%for expenditure on public 17 infrastructure or for property tax relief or both as defined 18 in Section 8-11-1.2 if approved by referendum as provided in 19 Section 8-11-1.1, of the selling price of all tangible 20 personal property transferred by such servicemen either in 21 the form of tangible personal property or in the form of real 22 estate as an incident to a sale of service. The tax imposed 23 may not be more than 1/2 of 1% and may be imposed only in 24 1/4% increments. The tax may not be imposed on the sale of 25 food for human consumption that is to be consumed off the 26 premises where it is sold (other than alcoholic beverages, 27 soft drinks, and food that 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 municipality pursuant to this Section and all 32 civil penalties that may be assessed as an incident thereof 33 shall be collected and enforced by the State Department of SB2037 Engrossed -8- LRB9212648BDdvA 1 Revenue. The certificate of registration which is issued by 2 the Department to a retailer under the Retailers' Occupation 3 Tax Act or under the Service Occupation Tax Act shall permit 4 such registrant to engage in a business which is taxable 5 under any ordinance or resolution enacted pursuant to this 6 Section without registering separately with the Department 7 under such 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 20 1a-1, 2, 2a, 3 through 3-50 (in respect to all provisions 21 therein other than the State rate of tax), 4 (except that the 22 reference to the State shall be to the taxing municipality), 23 5, 7, 8 (except that the jurisdiction to which the tax shall 24 be a debt to the extent indicated in that Section 8 shall be 25 the taxing municipality), 9 (except as to the disposition of 26 taxes and penalties collected, and except that the returned 27 merchandise credit for this municipal tax may not be taken 28 against any State tax), 10, 11, 12 (except the reference 29 therein to Section 2b of the Retailers' Occupation Tax Act), 30 13 (except that any reference to the State shall mean the 31 taxing municipality), the first paragraph of Section 15, 16, 32 17, 18, 19 and 20 of the Service Occupation Tax Act and 33 Section 3-7 of the Uniform Penalty and Interest Act, as fully 34 as if those provisions were set forth herein. SB2037 Engrossed -9- LRB9212648BDdvA 1 No municipality may impose a tax under this Section 2 unless the municipality also imposes a tax at the same rate 3 under Section 8-11-1.3 of this Code. 4 Persons subject to any tax imposed pursuant to the 5 authority granted in this Section may reimburse themselves 6 for their serviceman's tax liability hereunder by separately 7 stating such tax as an additional charge, which charge may be 8 stated in combination, in a single amount, with State tax 9 which servicemen are authorized to collect under the Service 10 Use Tax Act, pursuant to such bracket schedules as the 11 Department may prescribe. 12 Whenever the Department determines that a refund should 13 be made under this Section to a claimant instead of issuing 14 credit memorandum, the Department shall notify the State 15 Comptroller, who shall cause the order to be drawn for the 16 amount specified, and to the person named, in such 17 notification from the Department. Such refund shall be paid 18 by the State Treasurer out of the municipal retailers' 19 occupation tax fund. 20 The Department shall forthwith pay over to the State 21 Treasurer, ex officio, as trustee, all taxes and penalties 22 collected hereunder. On or before the 25th day of each 23 calendar month, the Department shall prepare and certify to 24 the Comptroller the disbursement of stated sums of money to 25 named municipalities, the municipalities to be those from 26 which suppliers and servicemen have paid taxes or penalties 27 hereunder to the Department during the second preceding 28 calendar month. The amount to be paid to each municipality 29 shall be the amount (not including credit memoranda) 30 collected hereunder during the second preceding calendar 31 month by the Department, and not including an amount equal to 32 the amount of refunds made during the second preceding 33 calendar month by the Department on behalf of such 34 municipality. Within 10 days after receipt, by the SB2037 Engrossed -10- LRB9212648BDdvA 1 Comptroller, of the disbursement certification to the 2 municipalities and the General Revenue Fund, provided for in 3 this Section to be given to the Comptroller by the 4 Department, the Comptroller shall cause the orders to be 5 drawn for the respective amounts in accordance with the 6 directions contained in such certification. 7 The Department of Revenue shall implement this amendatory 8 Act of the 91st General Assembly so as to collect the tax on 9 and after January 1, 2002. 10 Nothing in this Section shall be construed to authorize a 11 municipality to impose a tax upon the privilege of engaging 12 in any business which under the constitution of the United 13 States may not be made the subject of taxation by this State. 14 As used in this Section, "municipal" or "municipality" 15 means or refers to a city, village or incorporated town, 16 including an incorporated town which has superseded a civil 17 township. 18 This Section shall be known and may be cited as the 19 "Non-Home Rule Municipal Service Occupation Tax Act". 20 (Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.) 21 (65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5) 22 Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The 23 corporate authorities of a non-home rule municipality may 24 impose a tax upon the privilege of using, in such 25 municipality, any item of tangible personal property which is 26 purchased at retail from a retailer, and which is titled or 27 registered with an agency of this State's government,at a28rate of 1/2 of 1% andbased on the selling price of such 29 tangible personal property, as "selling price" is defined in 30 the Use Tax Act, for expenditure on public infrastructure or 31 for property tax relief or both as defined in Section 32 8-11-1.2, if approved by referendum as provided in Section 33 8-11-1.1. The tax imposed may not be more than 1/2 of 1% and SB2037 Engrossed -11- LRB9212648BDdvA 1 may be imposed only in 1/4% increments. Such tax shall be 2 collected from persons whose Illinois address for title or 3 registration purposes is given as being in such municipality. 4 Such tax shall be collected by the municipality imposing such 5 tax. A non-home rule municipality may not impose and collect 6 the tax prior to January 1, 2002. 7 This Section shall be known and may be cited as the 8 "Non-Home Rule Municipal Use Tax Act". 9 (Source: P.A. 91-649, eff. 1-1-00.)