Public Act 093-1089
 
SB2220 Enrolled LRB093 15875 RCE 41492 b

    AN ACT in relation to economic development.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Municipal Code is amended by
changing Section 11-74.3-6 as follows:
 
    (65 ILCS 5/11-74.3-6)
    Sec. 11-74.3-6. Business district revenue and obligations.
    (a) If the corporate authorities of a municipality have
approved a business district development or redevelopment plan
and have elected to impose a tax by ordinance pursuant to
subsections (b), (c), or (d) of this Section, each year after
the date of the approval of the ordinance and until all
business district project costs and all municipal obligations
financing the business district project costs, if any, have
been paid in accordance with the business district development
or redevelopment plan, but in no event longer than 23 years
after the date of adoption of the ordinance approving the
business district development or redevelopment plan, all
amounts generated by the retailers' occupation tax and service
occupation tax shall be collected and the tax shall be enforced
by the Department of Revenue in the same manner as all
retailers' occupation taxes and service occupation taxes
imposed in the municipality imposing the tax and all amounts
generated by the hotel operators' occupation tax shall be
collected and the tax shall be enforced by the municipality in
the same manner as all hotel operators' occupation taxes
imposed in the municipality imposing the tax. The corporate
authorities of the municipality shall deposit the proceeds of
the taxes imposed under subsections (b), (c), and (d) into a
special fund held by the corporate authorities of the
municipality called the Business District Tax Allocation Fund
for the purpose of paying business district project costs and
obligations incurred in the payment of those costs.
    (b) The corporate authorities of a municipality that has
established a business district under this Division 74.3 may,
by ordinance or resolution, impose a Business District
Retailers' Occupation Tax upon all persons engaged in the
business of selling tangible personal property, other than an
item of tangible personal property titled or registered with an
agency of this State's government, at retail in the business
district at a rate not to exceed 1% of the gross receipts from
the sales made in the course of such business, to be imposed
only in 0.25% increments. The tax may not be imposed on food
for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks,
and food that has been prepared for immediate consumption),
prescription and nonprescription medicines, drugs, medical
appliances, modifications to a motor vehicle for the purpose of
rendering it usable by a disabled person, and insulin, urine
testing materials, syringes, and needles used by diabetics, for
human use.
    The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration that is issued by the Department to
a retailer under the Retailers' Occupation Tax Act shall permit
the retailer to engage in a business that is taxable under any
ordinance or resolution enacted pursuant to this subsection
without registering separately with the Department under such
ordinance or resolution or under this subsection. The
Department of Revenue shall have full power to administer and
enforce this subsection; to collect all taxes and penalties due
under this subsection in the manner hereinafter provided; and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty under this
subsection. In the administration of, and compliance with, this
subsection, the Department and persons who are subject to this
subsection shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties, exclusions,
exemptions, and definitions of terms and employ the same modes
of procedure, as are prescribed in Sections 1, 1a through 1o, 2
through 2-65 (in respect to all provisions therein other than
the State rate of tax), 2c through 2h, 3 (except as to the
disposition of taxes and penalties collected), 4, 5, 5a, 5c,
5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
12, 13, and 14 of the Retailers' Occupation Tax Act and all
provisions of the Uniform Penalty and Interest Act, as fully as
if those provisions were set forth herein.
    Persons subject to any tax imposed under this subsection
may reimburse themselves for their seller's tax liability under
this subsection by separately stating the tax as an additional
charge, which charge may be stated in combination, in a single
amount, with State taxes that sellers are required to collect
under the Use Tax Act, in accordance with such bracket
schedules as the Department may prescribe.
    Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the business district retailers' occupation
tax fund.
    The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes, penalties, and
interest collected under this subsection for deposit into the
business district retailers' occupation tax fund. On or before
the 25th day of each calendar month, the Department shall
prepare and certify to the Comptroller the disbursement of
stated sums of money to named municipalities from the business
district retailers' occupation tax fund, the municipalities to
be those from which retailers have paid taxes or penalties
under this subsection to the Department during the second
preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda) collected under this subsection during the second
preceding calendar month by the Department plus an amount the
Department determines is necessary to offset any amounts that
were erroneously paid to a different taxing body, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department, less 2%
of that amount, which shall be deposited into the Tax
Compliance and Administration Fund and shall be used by the
Department, subject to appropriation, to cover the costs of the
Department in administering and enforcing the provisions of
this subsection, on behalf of such municipality, and not
including any amount that the Department determines is
necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the
municipality. Within 10 days after receipt by the Comptroller
of the disbursement certification to the municipalities
provided for in this subsection to be given to the Comptroller
by the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification. The proceeds of the
tax paid to municipalities under this subsection shall be
deposited into the Business District Tax Allocation Fund by the
municipality.
    An ordinance or resolution imposing or discontinuing the
tax under this subsection or effecting a change in the rate
thereof shall either (i) be adopted and a certified copy
thereof filed with the Department on or before the first day of
April, whereupon the Department, if all other requirements of
this subsection are met, shall proceed to administer and
enforce this subsection as of the first day of July next
following the adoption and filing; or (ii) be adopted and a
certified copy thereof filed with the Department on or before
the first day of October, whereupon, if all other requirements
of this subsection are met, the Department shall proceed to
administer and enforce this subsection as of the first day of
January next following the adoption and filing.
    The Department of Revenue shall not administer or enforce
an ordinance imposing, discontinuing, or changing the rate of
the tax under this subsection, until the municipality also
provides, in the manner prescribed by the Department, the
boundaries of the business district in such a way that the
Department can determine by its address whether a business is
located in the business district. The municipality must provide
this boundary information to the Department on or before April
1 for administration and enforcement of the tax under this
subsection by the Department beginning on the following July 1
and on or before October 1 for administration and enforcement
of the tax under this subsection by the Department beginning on
the following January 1. The Department of Revenue shall not
administer or enforce any change made to the boundaries of a
business district until the municipality reports the boundary
change to the Department in the manner prescribed by the
Department. The municipality must provide this boundary change
information to the Department on or before April 1 for
administration and enforcement by the Department of the change
beginning on the following July 1 and on or before October 1
for administration and enforcement by the Department of the
change beginning on the following January 1. The retailers in
the business district shall be responsible for charging the tax
imposed under this subsection. If a retailer is incorrectly
included or excluded from the list of those required to collect
the tax under this subsection, both the Department of Revenue
and the retailer shall be held harmless if they reasonably
relied on information provided by the municipality.
    A municipality that imposes the tax under this subsection
must submit to the Department of Revenue any other information
as the Department may require for the administration and
enforcement of the tax.
    When certifying the amount of a monthly disbursement to a
municipality under this subsection, the Department shall
increase or decrease the amount by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the
previous 6 months from the time a misallocation is discovered.
    Nothing in this subsection shall be construed to authorize
the municipality to impose a tax upon the privilege of engaging
in any business which under the Constitution of the United
States may not be made the subject of taxation by this State.
    If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsection (c) of this Section.
    (c) If a tax has been imposed under subsection (b), a
Business District Service Occupation Tax shall also be imposed
upon all persons engaged, in the business district, in the
business of making sales of service, who, as an incident to
making those sales of service, transfer tangible personal
property within the business district, either in the form of
tangible personal property or in the form of real estate as an
incident to a sale of service. The tax shall be imposed at the
same rate as the tax imposed in subsection (b) and shall not
exceed 1% of the selling price of tangible personal property so
transferred within the business district, to be imposed only in
0.25% increments. The tax may not be imposed on food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, soft drinks, and food
that has been prepared for immediate consumption),
prescription and nonprescription medicines, drugs, medical
appliances, modifications to a motor vehicle for the purpose of
rendering it usable by a disabled person, and insulin, urine
testing materials, syringes, and needles used by diabetics, for
human use.
    The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration which is issued by the Department
to a retailer under the Retailers' Occupation Tax Act or under
the Service Occupation Tax Act shall permit such registrant to
engage in a business which is taxable under any ordinance or
resolution enacted pursuant to this subsection without
registering separately with the Department under such
ordinance or resolution or under this subsection. The
Department of Revenue shall have full power to administer and
enforce this subsection; to collect all taxes and penalties due
under this subsection; to dispose of taxes and penalties so
collected in the manner hereinafter provided; and to determine
all rights to credit memoranda arising on account of the
erroneous payment of tax or penalty under this subsection. In
the administration of, and compliance with this subsection, the
Department and persons who are subject to this subsection shall
have the same rights, remedies, privileges, immunities, powers
and duties, and be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions,
and definitions of terms and employ the same modes of procedure
as are prescribed in Sections 2, 2a through 2d, 3 through 3-50
(in respect to all provisions therein other than the State rate
of tax), 4 (except that the reference to the State shall be to
the business district), 5, 7, 8 (except that the jurisdiction
to which the tax shall be a debt to the extent indicated in
that Section 8 shall be the municipality), 9 (except as to the
disposition of taxes and penalties collected, and except that
the returned merchandise credit for this tax may not be taken
against any State tax), 10, 11, 12 (except the reference
therein to Section 2b of the Retailers' Occupation Tax Act), 13
(except that any reference to the State shall mean the
municipality), the first paragraph of Section 15, and Sections
16, 17, 18, 19 and 20 of the Service Occupation Tax Act and all
provisions of the Uniform Penalty and Interest Act, as fully as
if those provisions were set forth herein.
    Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that servicemen
are authorized to collect under the Service Use Tax Act, in
accordance with such bracket schedules as the Department may
prescribe.
    Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such notification
from the Department. Such refund shall be paid by the State
Treasurer out of the business district retailers' occupation
tax fund.
    The Department shall forthwith pay over to the State
Treasurer, ex-officio, as trustee, all taxes, penalties, and
interest collected under this subsection for deposit into the
business district retailers' occupation tax fund. On or before
the 25th day of each calendar month, the Department shall
prepare and certify to the Comptroller the disbursement of
stated sums of money to named municipalities from the business
district retailers' occupation tax fund, the municipalities to
be those from which suppliers and servicemen have paid taxes or
penalties under this subsection to the Department during the
second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda) collected under this subsection during the second
preceding calendar month by the Department, less 2% of that
amount, which shall be deposited into the Tax Compliance and
Administration Fund and shall be used by the Department,
subject to appropriation, to cover the costs of the Department
in administering and enforcing the provisions of this
subsection, and not including an amount equal to the amount of
refunds made during the second preceding calendar month by the
Department on behalf of such municipality. Within 10 days after
receipt, by the Comptroller, of the disbursement certification
to the municipalities, provided for in this subsection to be
given to the Comptroller by the Department, the Comptroller
shall cause the orders to be drawn for the respective amounts
in accordance with the directions contained in such
certification. The proceeds of the tax paid to municipalities
under this subsection shall be deposited into the Business
District Tax Allocation Fund by the municipality.
    An ordinance or resolution imposing or discontinuing the
tax under this subsection or effecting a change in the rate
thereof shall either (i) be adopted and a certified copy
thereof filed with the Department on or before the first day of
April, whereupon the Department, if all other requirements of
this subsection are met, shall proceed to administer and
enforce this subsection as of the first day of July next
following the adoption and filing; or (ii) be adopted and a
certified copy thereof filed with the Department on or before
the first day of October, whereupon, if all other conditions of
this subsection are met, the Department shall proceed to
administer and enforce this subsection as of the first day of
January next following the adoption and filing.
    The Department of Revenue shall not administer or enforce
an ordinance imposing, discontinuing, or changing the rate of
the tax under this subsection, until the municipality also
provides, in the manner prescribed by the Department, the
boundaries of the business district in such a way that the
Department can determine by its address whether a business is
located in the business district. The municipality must provide
this boundary information to the Department on or before April
1 for administration and enforcement of the tax under this
subsection by the Department beginning on the following July 1
and on or before October 1 for administration and enforcement
of the tax under this subsection by the Department beginning on
the following January 1. The Department of Revenue shall not
administer or enforce any change made to the boundaries of a
business district until the municipality reports the boundary
change to the Department in the manner prescribed by the
Department. The municipality must provide this boundary change
information to the Department on or before April 1 for
administration and enforcement by the Department of the change
beginning on the following July 1 and on or before October 1
for administration and enforcement by the Department of the
change beginning on the following January 1. The retailers in
the business district shall be responsible for charging the tax
imposed under this subsection. If a retailer is incorrectly
included or excluded from the list of those required to collect
the tax under this subsection, both the Department of Revenue
and the retailer shall be held harmless if they reasonably
relied on information provided by the municipality.
    A municipality that imposes the tax under this subsection
must submit to the Department of Revenue any other information
as the Department may require for the administration and
enforcement of the tax.
    Nothing in this subsection shall be construed to authorize
the municipality to impose a tax upon the privilege of engaging
in any business which under the Constitution of the United
States may not be made the subject of taxation by the State.
    If a tax is imposed under this subsection (c), a tax shall
also be imposed under subsection (b) of this Section.
    (d) By ordinance, a municipality that has established a
business district under this Division 74.3 may impose an
occupation tax upon all persons engaged in the business
district in the business of renting, leasing, or letting rooms
in a hotel, as defined in the Hotel Operators' Occupation Tax
Act, at a rate not to exceed 1% of the gross rental receipts
from the renting, leasing, or letting of hotel rooms within the
business district, to be imposed only in 0.25% increments,
excluding, however, from gross rental receipts the proceeds of
renting, leasing, or letting to permanent residents of a hotel,
as defined in the Hotel Operators' Occupation Tax Act, and
proceeds from the tax imposed under subsection (c) of Section
13 of the Metropolitan Pier and Exposition Authority Act.
    The tax imposed by the municipality under this subsection
and all civil penalties that may be assessed as an incident to
that tax shall be collected and enforced by the municipality
imposing the tax. The municipality shall have full power to
administer and enforce this subsection, to collect all taxes
and penalties due under this subsection, to dispose of taxes
and penalties so collected in the manner provided in this
subsection, and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this subsection. In the administration of and compliance
with this subsection, the municipality and persons who are
subject to this subsection shall have the same rights,
remedies, privileges, immunities, powers, and duties, shall be
subject to the same conditions, restrictions, limitations,
penalties, and definitions of terms, and shall employ the same
modes of procedure as are employed with respect to a tax
adopted by the municipality under Section 8-3-14 of this Code.
    Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
tax liability for that tax by separately stating that tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State taxes imposed under the Hotel
Operators' Occupation Tax Act, and with any other tax.
    Nothing in this subsection shall be construed to authorize
a municipality to impose a tax upon the privilege of engaging
in any business which under the Constitution of the United
States may not be made the subject of taxation by this State.
    The proceeds of the tax imposed under this subsection shall
be deposited into the Business District Tax Allocation Fund.
    (e) Obligations issued pursuant to subsection (14) of
Section 11-74.3-3 shall be retired in the manner provided in
the ordinance authorizing the issuance of those obligations by
the receipts of taxes levied as authorized in subsections (12)
and (13) of Section 11-74.3-3. The ordinance shall pledge all
of the amounts in and to be deposited in the Business District
Tax Allocation Fund to the payment of business district project
costs and obligations. Obligations issued pursuant to
subsection (14) of Section 11-74.3-3 may be sold at public or
private sale at a price determined by the corporate authorities
of the municipality and no referendum approval of the electors
shall be required as a condition to the issuance of those
obligations. The ordinance authorizing the obligations may
require that the obligations contain a recital that they are
issued pursuant to subsection (14) of Section 11-74.3-3 and
this recital shall be conclusive evidence of their validity and
of the regularity of their issuance. The corporate authorities
of the municipality may also issue its obligations to refund,
in whole or in part, obligations previously issued by the
municipality under the authority of this Code, whether at or
prior to maturity. All obligations issued pursuant to
subsection (14) of Section 11-74.3-3 shall not be regarded as
indebtedness of the municipality issuing the obligations for
the purpose of any limitation imposed by law.
    (f) When business district costs, including, without
limitation, all municipal obligations financing business
district project costs incurred under Section 11-74.3-3 have
been paid, any surplus funds then remaining in the Business
District Tax Allocation Fund shall be distributed to the
municipal treasurer for deposit into the municipal general
corporate fund. Upon payment of all business district project
costs and retirement of obligations, but in no event more than
23 years after the date of adoption of the ordinance approving
the business district development or redevelopment plan, the
municipality shall adopt an ordinance immediately rescinding
the taxes imposed pursuant to subsections (12) and (13) of
Section 11-74.3-3.
(Source: P.A. 93-1053, eff. 1-1-05.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.