Section 693.101 Nature of
the Non-Home Rule Municipal Retailers' Occupation Tax
a) Authority to Impose Tax
1) Pursuant to the Non-Home Rule Municipal
Retailers' Occupation Tax Act [65 ILCS 5/8-11-1.3], the corporate
authorities of a non-home rule municipality may impose, by ordinance or
resolution adopted in the manner described in Section 8-11-1.1, a tax upon all
persons engaged in the business of selling tangible personal property, other
than on an item of tangible personal property which is titled and registered by
an agency of this State's government, at retail in the municipality. If
imposed, the tax shall be imposed on the gross receipts from such sales made in
the course of such business. The proceeds of the tax may be used for public
infrastructure or for property tax relief or both, as defined in Section
8-11-1.2.
2) The
tax imposed may not be more than 1% and may be imposed only in ¼% increments.
3) If
the tax is approved by referendum on or after July 14, 2010, and before
August 5, 2024, the corporate authorities of the non-home rule municipality
may, until January 1, 2031, use the proceeds of the tax for expenditure or
municipal operations, in addition to or in lieu of any expenditure on public
infrastructure or for property tax relief. If the tax is approved by ordinance
or resolution adopted on or after August 5, 2024, the corporate authorities of the
non-home rule municipality, may until January 1, 2031, 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. [65 ILCS
5/8-11-1.3]
4) The
tax may not be imposed on tangible personal property taxed at the 1% rate under
the Retailers' Occupation Tax Act [35 ILCS 120]. [65 ILCS 5/8-11-1.3] For
guidance on the types of tangible personal property taxed at the 1% rate, see
86 Ill. Adm. Code 130.310 and 130.311.
5) Beginning
December 1, 2019, this tax is not imposed on sales of aviation fuel unless the
tax revenue is expended for airport-related purposes. If a municipality does
not have an airport-related purpose to which it dedicates aviation fuel tax
revenue, then aviation fuel is excluded from the tax. Each municipality must
comply with the certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act [35 ILCS 120]. [65 ILCS
5/8-11-1.3] "Aviation fuel" means jet fuel and aviation gasoline.
[35 ILCS 120/3] "Airport-related purposes" has the meaning
ascribed in Section 6z-20.2 of the State Finance Act [30 ILCS 105].
This exclusion for aviation fuel only applies U.S.C. 47133 are binding on the
municipality.
6) The
tax imposed by a municipality pursuant to this Section and all civil
penalties that may be assessed as an incident thereof shall be collected and
enforced by the Department of Revenue. [65 ILCS 5/8-11-1.3]
b) Passing on the Tax
The legal
incidence of the Non-Home Rule Municipal Retailers' Occupation Tax is on the
seller. Nevertheless, the General Assembly has authorized persons subject to this
tax to reimburse themselves for their seller's tax liability by separately
stating such tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers are required to
collect under the Use Tax Act [35 ILCS 105], pursuant to such bracket
schedules as the Department has prescribed. [65 ILCS 5/8-11-1.3]
(See 86 Ill. Adm. Code 150.Table A).
c) Exclusion from "Gross Receipts"
Any amount
added to the selling price of tangible personal property by the seller because
of a Non-Home Rule Municipal Retailers' Occupation Tax, the Retailers'
Occupation Tax, the Use Tax Act, or any other local
occupation tax administered by the Department, and collected from the
purchaser, shall not be regarded as a part of the seller's gross receipts that
are subject to such Non-Home Rule Municipal Retailers' Occupation Tax.
(Source: Amended at 49 Ill.
Reg. 3304, effective February 26, 2025)
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TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 693
NON-HOME RULE MUNICIPAL RETAILERS' OCCUPATION TAX
SECTION 693.105 REGISTRATION AND RETURNS
Section 693.105 Registration
and Returns
a) Separate Registration not Required
A retailer's
registration under the Retailers' Occupation Tax Act [35 ILCS 120] is
sufficient for the purposes of the Non-Home
Rule Municipal Retailers' Occupation Tax Act. No special registration for a
Non-Home Rule Municipal Retailers' Occupation Tax Act is required.
b) Requirements as to Returns
1) The information required for the Non-Home Rule Municipal
Retailers' Occupation Tax shall be furnished on the Retailers' Occupation Tax
return form filed by the retailer.
2) If the retailer files its Retailers' Occupation Tax returns on
the gross receipts basis, the retailer must also report its Non-Home Rule
Municipal Retailers' Occupation Tax information in its returns on the gross
receipts basis. If the retailer files its Retailers' Occupation Tax returns on
the gross sales basis, the retailer must also report Non-Home Rule Municipal
Retailers' Occupation Tax information in its returns on the gross sales basis.
3) If applicable, aviation fuel tax returns shall
be field in accordance with Section 3 of the Retailers' Occupation Tax Act and
86 Ill. Adm. Code 130.541, except that the retailer's discount is not
allowed for taxes paid on aviation fuel that are subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. [65 ILCS 5/8-11-1.3]
(See also 86 Ill. Adm. Code 693.101(a)(5)).
(Source: Amended at 49 Ill. Reg. 3304, effective February 26, 2025)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 693
NON-HOME RULE MUNICIPAL RETAILERS' OCCUPATION TAX
SECTION 693.110 CLAIMS TO RECOVER ERRONEOUSLY PAID TAX
Section 693.110 Claims to
Recover Erroneously Paid Tax
Claims for Multiple Taxes. If a
claimant files a claim for refund on a transaction that was subject to State
and local taxes administered by the Department, the claim need not be filed
separately for each type of tax. A single claim for the total of all applicable
taxes will suffice. The claim will be audited, heard, or otherwise processed as
a single claim whenever possible. A single credit memorandum will be issued
that may be used by the claimant or his authorized assignee to pay State or
local tax liability as authorized in 86 Ill. Adm. Code 130.1505(b)(1).
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 693
NON-HOME RULE MUNICIPAL RETAILERS' OCCUPATION TAX
SECTION 693.115 JURISDICTIONAL QUESTIONS
Section 693.115 Jurisdictional Questions
The substance and provisions of
86 Ill. Adm. Code 270.115 of the Home Rule Municipal Retailers' Occupation Tax
Regulations which are not incompatible with the Non-Home Rule Municipal
Retailers' Occupation Tax Act, shall apply to this Part. References to a
"home rule municipality" or "municipality" in Section
270.115 mean "non-home rule municipality" for purposes of this
Section. References to the Home Rule Municipal Retailers’ Occupation Tax in
Section 270.115 mean Non-Home Rule Municipal Retailers' Occupation Tax for
purposes of this Part.
When used in this Part, "municipal"
and "municipality" mean a city, village or incorporated town,
including an incorporated town that has superseded a civil township.
(Source: Amended at 47 Ill. Reg. 2827,
effective February 7, 2023)
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 693
NON-HOME RULE MUNICIPAL RETAILERS' OCCUPATION TAX
SECTION 693.120 RETAILERS' OCCUPATION TAX REGULATIONS
Section 693.120 Retailers'
Occupation Tax Regulations
To avoid needless repetition,
the substance and provisions of all Retailers' Occupation Tax regulations (86
Ill. Adm. Code 130) that are not incompatible with the Non-Home Rule Municipal
Retailers' Occupation Tax Act shall apply to the tax imposed pursuant to this
Part.
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 693
NON-HOME RULE MUNICIPAL RETAILERS' OCCUPATION TAX
SECTION 693.125 PENALTIES, INTEREST AND PROCEDURES
Section 693.125 Penalties,
Interest and Procedures
All penalties (both civil and
criminal) and provisions concerning interest and procedures (such as the making
of assessments, the venue and mode of conducting hearings, subpoenas, matters
pertaining to judicial review and other procedural subjects), together with
statutes of limitation, are the same under the Non-Home Rule Municipal
Retailers' Occupation Tax Act as under the Illinois Retailers' Occupation Tax
Act [35 ILCS 120].
| TITLE 86: REVENUE
CHAPTER I: DEPARTMENT OF REVENUE
PART 693
NON-HOME RULE MUNICIPAL RETAILERS' OCCUPATION TAX
SECTION 693.130 ORDINANCE FILING DEADLINES; WHEN TAX RATE CHANGE APPLIES
Section 693.130 Ordinance
Filing Deadlines; When Tax Rate Change Applies
a) If an ordinance or resolution
imposing the tax, discontinuing the tax, or effecting a change in the rate of
tax under Section 8-11-1.1 of the Act is adopted, a certified copy of the ordinance or
resolution, shall be filed with the Department of Revenue, either:
1) on or before the first
day of April, whereupon the Department shall proceed to administer and enforce
the ordinance as of the first day of July next following the adoption and
filing; or
2) on or before the first
day of October, whereupon the Department shall proceed to administer and
enforce the ordinance as of the first day of January next following the
adoption and filing. [65 ILCS 5/8-11-1.1(c)]
b) Until August 5, 2024, the effective date of P.A.
103-0781, in the case of the imposition of or increase in the tax rate, the
corporate authorities must also file a certification that the ordinance or
resolution received referendum approval.
c) For purposes of determining which tax rate applies, the date
of the sale is deemed to be the date of the delivery of the property.
(Source: Amended at 49 Ill.
Reg. 3304, effective February 26, 2025)
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