101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2843

 

Introduced , by Rep. Ryan Spain

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-11-6  from Ch. 24, par. 8-11-6

    Amends the Home Rule Municipal Use Tax Act in the Illinois Municipal Code. Provides that all home rule municipalities imposing a home rule municipal use tax (rather than only home rule municipalities with 2,000,000 or more inhabitants) may impose an additional use tax at a rate that is an increment of 1/4% not to exceed 1% and based on the selling price of the tangible personal property. Provides that the Department of Revenue may collect a 2% monthly administrative fee from the amount to be remitted back to a municipality with under 2,000,000 inhabitants. Effective July 1, 2019.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Section 8-11-6 as follows:
 
6    (65 ILCS 5/8-11-6)  (from Ch. 24, par. 8-11-6)
7    Sec. 8-11-6. Home Rule Municipal Use Tax Act.
8    (a) The corporate authorities of a home rule municipality
9may impose a tax upon the privilege of using, in such
10municipality, any item of tangible personal property which is
11purchased at retail from a retailer, and which is titled or
12registered at a location within the corporate limits of such
13home rule municipality with an agency of this State's
14government, at a rate which is an increment of 1/4% and based
15on the selling price of such tangible personal property, as
16"selling price" is defined in the Use Tax Act. In home rule
17municipalities with less than 2,000,000 inhabitants, the tax
18shall be collected by the municipality imposing the tax from
19persons whose Illinois address for titling or registration
20purposes is given as being in such municipality.
21    (b) The In home rule municipalities with 2,000,000 or more
22inhabitants, the corporate authorities of the home rule
23municipality may additionally impose a tax beginning July 1,

 

 

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11991 upon the privilege of using in the municipality, any item
2of tangible personal property, other than tangible personal
3property titled or registered with an agency of the State's
4government, that is purchased at retail from a retailer located
5outside the corporate limits of the municipality, at a rate
6that is an increment of 1/4% not to exceed 1% and based on the
7selling price of the tangible personal property, as "selling
8price" is defined in the Use Tax Act. Such tax shall be
9collected from the purchaser either by the municipality
10imposing such tax or by the Department of Revenue pursuant to
11an agreement between the Department and the municipality. If
12the Department of Revenue is designated the administering
13agency for tax collection and remittance by a municipality with
14under 2,000,000 inhabitants imposing an additional tax under
15this subsection, then the Department may collect a 2% monthly
16administrative fee from the amount to be remitted back to the
17municipality.
18    To prevent multiple home rule taxation, the use in a home
19rule municipality of tangible personal property that is
20acquired outside the municipality and caused to be brought into
21the municipality by a person who has already paid a home rule
22municipal tax in another municipality in respect to the sale,
23purchase, or use of that property, shall be exempt to the
24extent of the amount of the tax properly due and paid in the
25other home rule municipality.
26    (c) If a municipality having 2,000,000 or more inhabitants

 

 

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1imposes the tax authorized by subsection (a), then the tax
2shall be collected by the Illinois Department of Revenue when
3the property is purchased at retail from a retailer in the
4county in which the home rule municipality imposing the tax is
5located, and in all contiguous counties. The tax shall be
6remitted to the State, or an exemption determination must be
7obtained from the Department before the title or certificate of
8registration for the property may be issued. The tax or proof
9of exemption may be transmitted to the Department by way of the
10State agency with which, or State officer with whom, the
11tangible personal property must be titled or registered if the
12Department and that agency or State officer determine that this
13procedure will expedite the processing of applications for
14title or registration.
15    The Department shall have full power to administer and
16enforce this Section to collect all taxes, penalties and
17interest due hereunder, to dispose of taxes, penalties and
18interest so collected in the manner hereinafter provided, and
19determine all rights to credit memoranda or refunds arising on
20account of the erroneous payment of tax, penalty or interest
21hereunder. In the administration of and compliance with this
22Section the Department and persons who are subject to this
23Section shall have the same rights, remedies, privileges,
24immunities, powers and duties, and be subject to the same
25conditions, restrictions, limitations, penalties and
26definitions of terms, and employ the same modes of procedure as

 

 

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1are prescribed in Sections 2 (except the definition of
2"retailer maintaining a place of business in this State"), 3
3(except provisions pertaining to the State rate of tax, and
4except provisions concerning collection or refunding of the tax
5by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22 of the
6Use Tax Act, which are not inconsistent with this Section, as
7fully as if provisions contained in those Sections of the Use
8Tax Act were set forth herein.
9    Whenever the Department determines that a refund shall be
10made under this Section to a claimant instead of issuing a
11credit memorandum, the Department shall notify the State
12Comptroller, who shall cause the order to be drawn for the
13amount specified, and to the person named, in such notification
14from the Department. Such refund shall be paid by the State
15Treasurer out of the home rule municipal retailers' occupation
16tax fund.
17    The Department shall forthwith pay over to the State
18Treasurer, ex officio, as trustee, all taxes, penalties and
19interest collected hereunder. On or before the 25th day of each
20calendar month, the Department shall prepare and certify to the
21State Comptroller the disbursement of stated sums of money to
22named municipalities, the municipality in each instance to be
23that municipality from which the Department during the second
24preceding calendar month, collected municipal use tax from any
25person whose Illinois address for titling or registration
26purposes is given as being in such municipality. The amount to

 

 

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1be paid to each municipality shall be the amount (not including
2credit memoranda) collected hereunder during the second
3preceding calendar month by the Department, and not including
4an amount equal to the amount of refunds made during the second
5preceding calendar month by the Department on behalf of such
6municipality, less 2% of the balance, which sum shall be
7retained by the State Treasurer to cover the costs incurred by
8the Department in administering and enforcing the provisions of
9this Section. The Department, at the time of each monthly
10disbursement to the municipalities, shall prepare and certify
11to the Comptroller the amount so retained by the State
12Treasurer, which shall be transferred into the Tax Compliance
13and Administration Fund. Within 10 days after receipt by the
14State Comptroller of the disbursement certification to the
15municipalities provided for in this Section to be given to the
16State Comptroller by the Department, the State Comptroller
17shall cause the orders to be drawn for the respective amounts
18in accordance with the directions contained in that
19certification.
20    Any ordinance imposing or discontinuing any tax to be
21collected and enforced by the Department under this Section
22shall be adopted and a certified copy thereof filed with the
23Department on or before October 1, whereupon the Department of
24Revenue shall proceed to administer and enforce this Section on
25behalf of the municipalities as of January 1 next following
26such adoption and filing. Beginning April 1, 1998, any

 

 

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1ordinance imposing or discontinuing any tax to be collected and
2enforced by the Department under this Section shall either (i)
3be adopted and a certified copy thereof filed with the
4Department on or before April 1, whereupon the Department of
5Revenue shall proceed to administer and enforce this Section on
6behalf of the municipalities as of July 1 next following the
7adoption and filing; or (ii) be adopted and a certified copy
8thereof filed with the Department on or before October 1,
9whereupon the Department of Revenue shall proceed to administer
10and enforce this Section on behalf of the municipalities as of
11January 1 next following the adoption and filing.
12    Nothing in this subsection (c) shall prevent a home rule
13municipality from collecting the tax pursuant to subsection (a)
14in any situation where such tax is not collected by the
15Department of Revenue under this subsection (c).
16    (d) Any unobligated balance remaining in the Municipal
17Retailers' Occupation Tax Fund on December 31, 1989, which fund
18was abolished by Public Act 85-1135, and all receipts of
19municipal tax as a result of audits of liability periods prior
20to January 1, 1990, shall be paid into the Local Government Tax
21Fund, for distribution as provided by this Section prior to the
22enactment of Public Act 85-1135. All receipts of municipal tax
23as a result of an assessment not arising from an audit, for
24liability periods prior to January 1, 1990, shall be paid into
25the Local Government Tax Fund for distribution before July 1,
261990, as provided by this Section prior to the enactment of

 

 

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1Public Act 85-1135, and on and after July 1, 1990, all such
2receipts shall be distributed as provided in Section 6z-18 of
3the State Finance Act.
4    (e) As used in this Section, "Municipal" and "Municipality"
5means a city, village or incorporated town, including an
6incorporated town which has superseded a civil township.
7    (f) This Section shall be known and may be cited as the
8Home Rule Municipal Use Tax Act.
9(Source: P.A. 98-1049, eff. 8-25-14.)
 
10    Section 99. Effective date. This Act takes effect July 1,
112019.