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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 SB3134
Introduced 2/8/2010, by Sen. Don Harmon SYNOPSIS AS INTRODUCED: |
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65 ILCS 5/8-11-1.3 |
from Ch. 24, par. 8-11-1.3 |
65 ILCS 5/8-11-1.4 |
from Ch. 24, par. 8-11-1.4 |
65 ILCS 5/8-11-1.5 |
from Ch. 24, par. 8-11-1.5 |
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Amends the Illinois Municipal Code concerning the non-home rule use and occupation taxes. Provides that if a tax is approved by referendum on or after the effective date of the amendatory Act, the corporate authorities of a non-home rule municipality may, until December 31, 2015, use the proceeds of the tax for expenditure on municipal operations, in addition to or in lieu of any expenditure on public infrastructure or for property tax relief. Effective immediately.
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| FISCAL NOTE ACT MAY APPLY | |
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A BILL FOR
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SB3134 |
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LRB096 20281 RLJ 35887 b |
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| AN ACT concerning local government.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Municipal Code is amended by |
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| changing Sections 8-11-1.3, 8-11-1.4, and 8-11-1.5 as follows:
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| (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
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| Sec. 8-11-1.3. Non-Home Rule Municipal Retailers' |
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| Occupation Tax Act. The corporate authorities of a non-home |
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| rule municipality may impose
a tax upon all persons engaged in |
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| the business of selling tangible
personal property, other than |
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| on an item of tangible personal property
which is titled and |
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| registered by an agency of this State's Government,
at retail |
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| in the municipality for expenditure on
public infrastructure or |
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| for property tax relief or both as defined in
Section 8-11-1.2 |
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| if approved by
referendum as provided in Section 8-11-1.1, of |
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| the gross receipts from such
sales made in the course of such |
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| business.
If the tax is approved by referendum on or after the |
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| effective date of this amendatory Act of the 96th General |
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| Assembly, the corporate authorities of a non-home rule |
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| municipality may, until December 31, 2015, use the proceeds of |
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| the tax for expenditure on municipal operations, in addition to |
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| or in lieu of any expenditure on public infrastructure or for |
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| property tax relief. The tax imposed may not be more than 1% |
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SB3134 |
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LRB096 20281 RLJ 35887 b |
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| and may be imposed only in
1/4% increments. The tax may not be |
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| imposed on the sale of food for human
consumption that is
to be |
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| consumed off the premises where it is sold (other than |
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| alcoholic
beverages, soft drinks, and food that has been |
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| prepared for immediate
consumption) and prescription and |
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| nonprescription medicines, drugs, medical
appliances, and |
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| insulin, urine testing materials, syringes, and needles used by
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| diabetics.
The tax imposed by a
municipality pursuant to this |
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| Section and all civil penalties that may be
assessed as an |
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| incident thereof shall be collected and enforced by the
State |
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| Department of Revenue. The certificate of registration which is
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| issued by the Department to a retailer under the Retailers' |
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| Occupation Tax
Act shall permit such retailer to engage in a |
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| business which is taxable
under any ordinance or resolution |
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| enacted pursuant to
this Section without registering |
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| separately with the Department under
such ordinance or |
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| resolution or under this Section. The Department
shall have |
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| full power to administer and enforce this Section; to collect
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| all taxes and penalties due hereunder; to dispose of taxes and |
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| penalties
so collected in the manner hereinafter provided, and |
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| to determine all
rights to credit memoranda, arising on account |
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| of the erroneous payment
of tax or penalty hereunder. In the |
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| administration of, and compliance
with, this Section, the |
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| Department and persons who are subject to this
Section shall |
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| have the same rights, remedies, privileges, immunities,
powers |
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| and duties, and be subject to the same conditions, |
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SB3134 |
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LRB096 20281 RLJ 35887 b |
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| restrictions,
limitations, penalties and definitions of terms, |
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| and employ the same
modes of procedure, as are prescribed in |
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| Sections 1, 1a, 1a-1, 1d, 1e,
1f, 1i, 1j, 2 through 2-65 (in |
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| respect to all provisions therein other than
the State rate of |
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| tax), 2c, 3 (except as to the disposition of taxes and
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| penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, |
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| 5j, 5k, 5l,
6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the |
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| Retailers'
Occupation Tax Act and Section 3-7 of the Uniform |
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| Penalty and Interest
Act as fully as if those provisions were |
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| set forth herein.
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| No municipality may impose a tax under this Section unless |
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| the municipality
also imposes a tax at the same rate under |
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| Section 8-11-1.4 of this Code.
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| Persons subject to any tax imposed pursuant to the |
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| authority granted
in this Section may reimburse themselves for |
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| their seller's tax
liability hereunder by separately stating |
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| such tax as an additional
charge, which charge may be stated in |
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| combination, in a single amount,
with State tax which sellers |
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| are required to collect under the Use Tax
Act, pursuant to such |
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| bracket schedules as the Department may prescribe.
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| Whenever the Department determines that a refund should be |
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| made under
this Section to a claimant instead of issuing a |
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| credit memorandum, the
Department shall notify the State |
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| Comptroller, who shall cause the
order to be drawn for the |
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| amount specified, and to the person named,
in such notification |
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| from the Department. Such refund shall be paid by
the State |
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SB3134 |
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LRB096 20281 RLJ 35887 b |
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| Treasurer out of the non-home rule municipal retailers'
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| occupation tax fund.
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| The Department shall forthwith pay over to the State |
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| Treasurer, ex
officio, as trustee, all taxes and penalties |
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| collected hereunder. On or
before the 25th day of each calendar |
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| month, the Department shall
prepare and certify to the |
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| Comptroller the disbursement of stated sums
of money to named |
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| municipalities, the municipalities to be those from
which |
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| retailers have paid taxes or penalties hereunder to the |
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| Department
during the second preceding calendar month. The |
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| amount to be paid to each
municipality shall be the amount (not |
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| including credit memoranda) collected
hereunder during the |
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| second preceding calendar month by the Department plus
an |
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| amount the Department determines is necessary to offset any |
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| amounts
which were erroneously paid to a different taxing body, |
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| and not including
an amount equal to the amount of refunds made |
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| during the second preceding
calendar month by the Department on |
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| behalf of such municipality, and not
including any amount which |
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| the Department determines is necessary to offset
any amounts |
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| which were payable to a different taxing body but were
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| erroneously paid to the municipality. Within 10 days after |
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| receipt, by the
Comptroller, of the disbursement certification |
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| to the municipalities,
provided for in this Section to be given |
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| to the Comptroller by the
Department, the Comptroller shall |
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| cause the orders to be drawn for the
respective amounts in |
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| accordance with the directions contained in such
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SB3134 |
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LRB096 20281 RLJ 35887 b |
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| certification.
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| For the purpose of determining the local governmental unit |
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| whose tax
is applicable, a retail sale, by a producer of coal |
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| or other mineral
mined in Illinois, is a sale at retail at the |
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| place where the coal or
other mineral mined in Illinois is |
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| extracted from the earth. This
paragraph does not apply to coal |
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| or other mineral when it is delivered
or shipped by the seller |
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| to the purchaser at a point outside Illinois so
that the sale |
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| is exempt under the Federal Constitution as a sale in
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| interstate or foreign commerce.
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| Nothing in this Section shall be construed to authorize a
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| municipality to impose a tax upon the privilege of engaging in |
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| any
business which under the constitution of the United States |
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| may not be
made the subject of taxation by this State.
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| When certifying the amount of a monthly disbursement to a |
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| municipality
under this Section, the Department shall increase |
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| or decrease such amount
by an amount necessary to offset any |
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| misallocation of previous
disbursements. The offset amount |
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| shall be the amount erroneously disbursed
within the previous 6 |
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| months from the time a misallocation is discovered.
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| The Department of Revenue shall implement this amendatory |
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| Act of the 91st
General Assembly so as to collect the tax on |
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| and after January 1, 2002.
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| As used in this Section, "municipal" and "municipality" |
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| means a city,
village or incorporated town, including an |
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| incorporated town which has
superseded a civil township.
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SB3134 |
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LRB096 20281 RLJ 35887 b |
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| This Section shall be known and may be cited as the |
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| "Non-Home Rule
Municipal Retailers' Occupation Tax Act".
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| (Source: P.A. 94-679, eff. 1-1-06.)
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| (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
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| Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation |
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| Tax Act. The
corporate authorities of a non-home rule |
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| municipality may impose a
tax upon all persons engaged, in such |
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| municipality, in the business of
making sales of service for |
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| expenditure on
public infrastructure or for property tax relief |
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| or both as defined in
Section 8-11-1.2 if approved by
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| referendum as provided in Section 8-11-1.1, of the selling |
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| price of
all tangible personal property transferred by such |
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| servicemen either in
the form of tangible personal property or |
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| in the form of real estate as
an incident to a sale of service.
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| If the tax is approved by referendum on or after the effective |
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| date of this amendatory Act of the 96th General Assembly, the |
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| corporate authorities of a non-home rule municipality may, |
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| until December 31, 2015, use the proceeds of the tax for |
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| expenditure on municipal operations, in addition to or in lieu |
20 |
| of any expenditure on public infrastructure or for property tax |
21 |
| relief. The tax imposed may not be more than 1% and may be |
22 |
| imposed only in
1/4% increments. The tax may not be imposed on |
23 |
| the sale of food for human
consumption that is
to be consumed |
24 |
| off the premises where it is sold (other than alcoholic
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25 |
| beverages, soft drinks, and food that has been prepared for |
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SB3134 |
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LRB096 20281 RLJ 35887 b |
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| immediate
consumption) and prescription and nonprescription |
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| medicines, drugs, medical
appliances, and insulin, urine |
3 |
| testing materials, syringes, and needles used by
diabetics.
The |
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| tax imposed by a municipality
pursuant to this Section and all |
5 |
| civil penalties that may be assessed as
an incident thereof |
6 |
| shall be collected and enforced by the State
Department of |
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| Revenue. The certificate of registration which is issued
by the |
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| Department to a retailer under the Retailers' Occupation Tax
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| Act or under the Service Occupation Tax Act shall permit
such |
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| registrant to engage in a business which is taxable under any
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| ordinance or resolution enacted pursuant to this Section |
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| without
registering separately with the Department under such |
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| ordinance or
resolution or under this Section. The Department |
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| shall have full power
to administer and enforce this Section; |
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| to collect all taxes and
penalties due hereunder; to dispose of |
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| taxes and penalties so collected
in the manner hereinafter |
17 |
| provided, and to determine all rights to
credit memoranda |
18 |
| arising on account of the erroneous payment of tax or
penalty |
19 |
| hereunder. In the administration of, and compliance with, this
|
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| Section the Department and persons who are subject to this |
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| Section
shall have the same rights, remedies, privileges, |
22 |
| immunities, powers and
duties, and be subject to the same |
23 |
| conditions, restrictions, limitations,
penalties and |
24 |
| definitions of terms, and employ the same modes of procedure,
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| as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in |
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| respect to
all provisions therein other than the State rate of |
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SB3134 |
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LRB096 20281 RLJ 35887 b |
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| tax), 4 (except that
the reference to the State shall be to the |
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| taxing municipality), 5, 7, 8
(except that the jurisdiction to |
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| which the tax shall be a debt to the
extent indicated in that |
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| Section 8 shall be the taxing municipality), 9
(except as to |
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| the disposition of taxes and penalties collected, and except
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| that the returned merchandise credit for this municipal tax may |
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| not be
taken against any State tax), 10, 11, 12 (except the |
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| reference therein to
Section 2b of the Retailers' Occupation |
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| Tax Act), 13 (except that any
reference to the State shall mean |
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| the taxing municipality), the first
paragraph of Section 15, |
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| 16, 17, 18, 19 and 20 of the Service Occupation
Tax Act and |
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| Section 3-7 of the Uniform Penalty and Interest Act, as fully
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| as if those provisions were set forth herein.
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| No municipality may impose a tax under this Section unless |
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| the municipality
also imposes a tax at the same rate under |
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| Section 8-11-1.3 of this Code.
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| Persons subject to any tax imposed pursuant to the |
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| authority granted
in this Section may reimburse themselves for |
19 |
| their serviceman's tax
liability hereunder by separately |
20 |
| stating such tax as an additional
charge, which charge may be |
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| stated in combination, in a single amount,
with State tax which |
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| servicemen are authorized to collect under the
Service Use Tax |
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| Act, pursuant to such bracket schedules as the
Department may |
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| prescribe.
|
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| Whenever the Department determines that a refund should be |
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| made under
this Section to a claimant instead of issuing credit |
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SB3134 |
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LRB096 20281 RLJ 35887 b |
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| memorandum, the
Department shall notify the State Comptroller, |
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| who shall cause the
order to be drawn for the amount specified, |
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| and to the person named,
in such notification from the |
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| Department. Such refund shall be paid by
the State Treasurer |
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| out of the municipal retailers' occupation tax fund.
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| The Department shall forthwith pay over to the State |
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| Treasurer,
ex officio, as trustee, all taxes and penalties |
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| collected hereunder. On
or before the 25th day of each calendar |
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| month, the Department shall
prepare and certify to the |
10 |
| Comptroller the disbursement of stated sums
of money to named |
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| municipalities, the municipalities to be those from
which |
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| suppliers and servicemen have paid taxes or penalties hereunder |
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| to
the Department during the second preceding calendar month. |
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| The amount
to be paid to each municipality shall be the amount |
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| (not including credit
memoranda) collected hereunder during |
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| the second preceding calendar
month by the Department, and not |
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| including an amount equal to the amount
of refunds made during |
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| the second preceding calendar month by the
Department on behalf |
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| of such municipality. Within 10 days
after receipt, by the |
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| Comptroller, of the disbursement certification to
the |
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| municipalities and the General Revenue Fund, provided for in |
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| this
Section to be given to the Comptroller by the Department, |
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| the
Comptroller shall cause the orders to be drawn for the |
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| respective
amounts in accordance with the directions contained |
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| in such
certification.
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| The Department of Revenue shall implement this amendatory |
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SB3134 |
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LRB096 20281 RLJ 35887 b |
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| Act of the 91st
General Assembly so as to collect the tax on |
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| and after January 1, 2002.
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3 |
| Nothing in this Section shall be construed to authorize a
|
4 |
| municipality to impose a tax upon the privilege of engaging in |
5 |
| any
business which under the constitution of the United States |
6 |
| may not be
made the subject of taxation by this State.
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| As used in this Section, "municipal" or "municipality" |
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| means or refers to
a city, village or incorporated town, |
9 |
| including an incorporated town which
has superseded a civil |
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| township.
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| This Section shall be known and may be cited as the |
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| "Non-Home Rule Municipal
Service Occupation Tax Act".
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13 |
| (Source: P.A. 94-679, eff. 1-1-06.)
|
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| (65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5)
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| Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The |
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| corporate
authorities of a non-home rule municipality may |
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| impose a
tax upon the privilege of using, in such municipality, |
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| any item of tangible
personal property which is purchased at |
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| retail from a retailer, and which is
titled or registered with |
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| an agency of this State's government, based on the selling |
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| price of such tangible personal
property, as "selling price" is |
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| defined in the Use Tax Act, for expenditure
on public |
23 |
| infrastructure or for property tax relief or both as defined in
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| Section 8-11-1.2, if approved by
referendum as provided in |
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| Section 8-11-1.1. If the tax is approved by referendum on or |
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SB3134 |
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LRB096 20281 RLJ 35887 b |
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1 |
| after the effective date of this amendatory Act of the 96th |
2 |
| General Assembly, the corporate authorities of a non-home rule |
3 |
| municipality may, until December 31, 2015, use the proceeds of |
4 |
| the tax for expenditure on municipal operations, in addition to |
5 |
| or in lieu of any expenditure on public infrastructure or for |
6 |
| property tax relief. The tax imposed may not be more
than 1% |
7 |
| and may be imposed only in 1/4% increments. Such tax shall
be
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| collected from persons whose Illinois address for title or |
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| registration
purposes is given as being in such municipality. |
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| Such tax shall be
collected by the municipality imposing such |
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| tax.
A non-home rule municipality may not
impose and collect |
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| the tax prior to January 1, 2002.
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| This Section shall be known and may be cited as the |
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| "Non-Home Rule
Municipal Use Tax Act".
|
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| (Source: P.A. 94-679, eff. 1-1-06.)
|
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law.
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