101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2958

 

Introduced , by Rep. Anthony DeLuca

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-11-1  from Ch. 24, par. 8-11-1
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 5/8-11-1.6
65 ILCS 5/8-11-1.7
65 ILCS 5/8-11-5  from Ch. 24, par. 8-11-5
65 ILCS 5/8-11-6  from Ch. 24, par. 8-11-6

    Amends the Illinois Municipal Code. Provides that a municipality may, by ordinance, provide that its use and occupation taxes shall be collected and enforced by the municipality (currently, the Department of Revenue). Provides that, if the tax is collected and enforced by the municipality, none of the proceeds collected from the tax shall be transferred into the Tax Compliance and Administration Fund. Effective immediately.


LRB101 06247 HLH 51273 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2958LRB101 06247 HLH 51273 b

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 Sections 8-11-1, 8-11-1.3, 8-11-1.4, 8-11-1.6,
68-11-1.7, 8-11-5, and 8-11-6 as follows:
 
7    (65 ILCS 5/8-11-1)  (from Ch. 24, par. 8-11-1)
8    Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
9Act. The corporate authorities of a home rule municipality may
10impose a tax upon all persons engaged in the business of
11selling tangible personal property, other than an item of
12tangible personal property titled or registered with an agency
13of this State's government, at retail in the municipality on
14the gross receipts from these sales made in the course of such
15business. If imposed, the tax shall only be imposed in 1/4%
16increments. On and after September 1, 1991, this additional tax
17may not be imposed on tangible personal property taxed at the
181% rate under the Retailers' Occupation Tax Act. The tax
19imposed by a home rule municipality under this Section and all
20civil penalties that may be assessed as an incident of the tax
21shall be collected and enforced by the State Department of
22Revenue, except that a municipality may, by ordinance, provide
23that the tax shall be collected and enforced by the

 

 

HB2958- 2 -LRB101 06247 HLH 51273 b

1municipality. If the tax is collected and enforced by the
2municipality, none of the proceeds collected from the tax shall
3be transferred into the Tax Compliance and Administration Fund.
4The certificate of registration that is issued by the
5Department to a retailer under the Retailers' Occupation Tax
6Act shall permit the retailer to engage in a business that is
7taxable under any ordinance or resolution enacted pursuant to
8this Section without registering separately with the
9Department under such ordinance or resolution or under this
10Section. The Department shall have full power to administer and
11enforce this Section; to collect all taxes and penalties due
12hereunder; to dispose of taxes and penalties so collected in
13the manner hereinafter provided; and to determine all rights to
14credit memoranda arising on account of the erroneous payment of
15tax or penalty hereunder. In the administration of, and
16compliance with, this Section the Department and persons who
17are subject to this Section shall have the same rights,
18remedies, privileges, immunities, powers and duties, and be
19subject to the same conditions, restrictions, limitations,
20penalties and definitions of terms, and employ the same modes
21of procedure, as are prescribed in Sections 1, 1a, 1d, 1e, 1f,
221i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
23provisions therein other than the State rate of tax), 2c, 3
24(except as to the disposition of taxes and penalties
25collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
265l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the

 

 

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1Retailers' Occupation Tax Act and Section 3-7 of the Uniform
2Penalty and Interest Act, as fully as if those provisions were
3set forth herein.
4    No tax may be imposed by a home rule municipality under
5this Section unless the municipality also imposes a tax at the
6same rate under Section 8-11-5 of this Act.
7    Persons subject to any tax imposed under the authority
8granted in this Section may reimburse themselves for their
9seller's tax liability hereunder by separately stating that tax
10as an additional charge, which charge may be stated in
11combination, in a single amount, with State tax which sellers
12are required to collect under the Use Tax Act, pursuant to such
13bracket schedules as the Department may prescribe.
14    Whenever the Department determines that a refund should be
15made under this Section to a claimant instead of issuing a
16credit memorandum, the Department shall notify the State
17Comptroller, who shall cause the order to be drawn for the
18amount specified and to the person named in the notification
19from the Department. The refund shall be paid by the State
20Treasurer out of the home rule municipal retailers' occupation
21tax fund.
22    The Department shall immediately pay over to the State
23Treasurer, ex officio, as trustee, all taxes and penalties
24collected hereunder.
25    As soon as possible after the first day of each month,
26beginning January 1, 2011, upon certification of the Department

 

 

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1of Revenue, the Comptroller shall order transferred, and the
2Treasurer shall transfer, to the STAR Bonds Revenue Fund the
3local sales tax increment, as defined in the Innovation
4Development and Economy Act, collected under this Section
5during the second preceding calendar month for sales within a
6STAR bond district.
7    After the monthly transfer to the STAR Bonds Revenue Fund,
8on or before the 25th day of each calendar month, the
9Department shall prepare and certify to the Comptroller the
10disbursement of stated sums of money to named municipalities,
11the municipalities to be those from which retailers have paid
12taxes or penalties hereunder to the Department during the
13second preceding calendar month. The amount to be paid to each
14municipality shall be the amount (not including credit
15memoranda) collected hereunder during the second preceding
16calendar month by the Department plus an amount the Department
17determines is necessary to offset any amounts that were
18erroneously paid to a different taxing body, and not including
19an amount equal to the amount of refunds made during the second
20preceding calendar month by the Department on behalf of such
21municipality, and not including any amount that the Department
22determines is necessary to offset any amounts that were payable
23to a different taxing body but were erroneously paid to the
24municipality, and not including any amounts that are
25transferred to the STAR Bonds Revenue Fund, less 1.5% of the
26remainder, which the Department shall transfer into the Tax

 

 

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1Compliance and Administration Fund. The Department, at the time
2of each monthly disbursement to the municipalities, shall
3prepare and certify to the State Comptroller the amount to be
4transferred into the Tax Compliance and Administration Fund
5under this Section. Within 10 days after receipt by the
6Comptroller of the disbursement certification to the
7municipalities and the Tax Compliance and Administration Fund
8provided for in this Section to be given to the Comptroller by
9the Department, the Comptroller shall cause the orders to be
10drawn for the respective amounts in accordance with the
11directions contained in the certification.
12    In addition to the disbursement required by the preceding
13paragraph and in order to mitigate delays caused by
14distribution procedures, an allocation shall, if requested, be
15made within 10 days after January 14, 1991, and in November of
161991 and each year thereafter, to each municipality that
17received more than $500,000 during the preceding fiscal year,
18(July 1 through June 30) whether collected by the municipality
19or disbursed by the Department as required by this Section.
20Within 10 days after January 14, 1991, participating
21municipalities shall notify the Department in writing of their
22intent to participate. In addition, for the initial
23distribution, participating municipalities shall certify to
24the Department the amounts collected by the municipality for
25each month under its home rule occupation and service
26occupation tax during the period July 1, 1989 through June 30,

 

 

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11990. The allocation within 10 days after January 14, 1991,
2shall be in an amount equal to the monthly average of these
3amounts, excluding the 2 months of highest receipts. The
4monthly average for the period of July 1, 1990 through June 30,
51991 will be determined as follows: the amounts collected by
6the municipality under its home rule occupation and service
7occupation tax during the period of July 1, 1990 through
8September 30, 1990, plus amounts collected by the Department
9and paid to such municipality through June 30, 1991, excluding
10the 2 months of highest receipts. The monthly average for each
11subsequent period of July 1 through June 30 shall be an amount
12equal to the monthly distribution made to each such
13municipality under the preceding paragraph during this period,
14excluding the 2 months of highest receipts. The distribution
15made in November 1991 and each year thereafter under this
16paragraph and the preceding paragraph shall be reduced by the
17amount allocated and disbursed under this paragraph in the
18preceding period of July 1 through June 30. The Department
19shall prepare and certify to the Comptroller for disbursement
20the allocations made in accordance with this paragraph.
21    For the purpose of determining the local governmental unit
22whose tax is applicable, a retail sale by a producer of coal or
23other mineral mined in Illinois is a sale at retail at the
24place where the coal or other mineral mined in Illinois is
25extracted from the earth. This paragraph does not apply to coal
26or other mineral when it is delivered or shipped by the seller

 

 

HB2958- 7 -LRB101 06247 HLH 51273 b

1to the purchaser at a point outside Illinois so that the sale
2is exempt under the United States Constitution as a sale in
3interstate or foreign commerce.
4    Nothing in this Section shall be construed to authorize a
5municipality to impose a tax upon the privilege of engaging in
6any business which under the Constitution of the United States
7may not be made the subject of taxation by this State.
8    An ordinance or resolution imposing or discontinuing a tax
9hereunder or effecting a change in the rate thereof shall be
10adopted and a certified copy thereof filed with the Department
11on or before the first day of June, whereupon the Department
12shall proceed to administer and enforce this Section as of the
13first day of September next following the adoption and filing.
14Beginning January 1, 1992, an ordinance or resolution imposing
15or discontinuing the tax hereunder or effecting a change in the
16rate thereof shall be adopted and a certified copy thereof
17filed with the Department on or before the first day of July,
18whereupon the Department shall proceed to administer and
19enforce this Section as of the first day of October next
20following such adoption and filing. Beginning January 1, 1993,
21an ordinance or resolution imposing or discontinuing the tax
22hereunder or effecting a change in the rate thereof shall be
23adopted and a certified copy thereof filed with the Department
24on or before the first day of October, whereupon the Department
25shall proceed to administer and enforce this Section as of the
26first day of January next following the adoption and filing.

 

 

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1However, a municipality located in a county with a population
2in excess of 3,000,000 that elected to become a home rule unit
3at the general primary election in 1994 may adopt an ordinance
4or resolution imposing the tax under this Section and file a
5certified copy of the ordinance or resolution with the
6Department on or before July 1, 1994. The Department shall then
7proceed to administer and enforce this Section as of October 1,
81994. Beginning April 1, 1998, an ordinance or resolution
9imposing or discontinuing the tax hereunder or effecting a
10change in the rate thereof shall either (i) be adopted and a
11certified copy thereof filed with the Department on or before
12the first day of April, whereupon the Department shall proceed
13to administer and enforce this Section as of the first day of
14July next following the adoption and filing; or (ii) be adopted
15and a certified copy thereof filed with the Department on or
16before the first day of October, whereupon the Department shall
17proceed to administer and enforce this Section as of the first
18day of January next following the adoption and filing.
19    When certifying the amount of a monthly disbursement to a
20municipality under this Section, the Department shall increase
21or decrease the amount by an amount necessary to offset any
22misallocation of previous disbursements. The offset amount
23shall be the amount erroneously disbursed within the previous 6
24months from the time a misallocation is discovered.
25    Any unobligated balance remaining in the Municipal
26Retailers' Occupation Tax Fund on December 31, 1989, which fund

 

 

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1was abolished by Public Act 85-1135, and all receipts of
2municipal tax as a result of audits of liability periods prior
3to January 1, 1990, shall be paid into the Local Government Tax
4Fund for distribution as provided by this Section prior to the
5enactment of Public Act 85-1135. All receipts of municipal tax
6as a result of an assessment not arising from an audit, for
7liability periods prior to January 1, 1990, shall be paid into
8the Local Government Tax Fund for distribution before July 1,
91990, as provided by this Section prior to the enactment of
10Public Act 85-1135; and on and after July 1, 1990, all such
11receipts shall be distributed as provided in Section 6z-18 of
12the State Finance Act.
13    As used in this Section, "municipal" and "municipality"
14means a city, village or incorporated town, including an
15incorporated town that has superseded a civil township.
16    This Section shall be known and may be cited as the Home
17Rule Municipal Retailers' Occupation Tax Act.
18(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
19100-587, eff. 6-4-18; 100-1171, eff. 1-4-19; revised 1-9-19.)
 
20    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
21    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
22Occupation Tax Act. The corporate authorities of a non-home
23rule municipality may impose a tax upon all persons engaged in
24the business of selling tangible personal property, other than
25on an item of tangible personal property which is titled and

 

 

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1registered by an agency of this State's Government, at retail
2in the municipality for expenditure on public infrastructure or
3for property tax relief or both as defined in Section 8-11-1.2
4if approved by referendum as provided in Section 8-11-1.1, of
5the gross receipts from such sales made in the course of such
6business. If the tax is approved by referendum on or after July
714, 2010 (the effective date of Public Act 96-1057), the
8corporate authorities of a non-home rule municipality may,
9until December 31, 2020, use the proceeds of the tax for
10expenditure on municipal operations, in addition to or in lieu
11of any expenditure on public infrastructure or for property tax
12relief. The tax imposed may not be more than 1% and may be
13imposed only in 1/4% increments. The tax may not be imposed on
14tangible personal property taxed at the 1% rate under the
15Retailers' Occupation Tax Act. The tax imposed by a
16municipality pursuant to this Section and all civil penalties
17that may be assessed as an incident thereof shall be collected
18and enforced by the State Department of Revenue, except that a
19municipality may, by ordinance, provide that the tax shall be
20collected and enforced by the municipality. If the tax is
21collected and enforced by the municipality, none of the
22proceeds collected from the tax shall be transferred into the
23Tax Compliance and Administration Fund. The certificate of
24registration which is issued by the Department to a retailer
25under the Retailers' Occupation Tax Act shall permit such
26retailer to engage in a business which is taxable under any

 

 

HB2958- 11 -LRB101 06247 HLH 51273 b

1ordinance or resolution enacted pursuant to this Section
2without registering separately with the Department under such
3ordinance or resolution or under this Section. The Department
4shall have full power to administer and enforce this Section;
5to collect all taxes and penalties due hereunder; to dispose of
6taxes and penalties so collected in the manner hereinafter
7provided, and to determine all rights to credit memoranda,
8arising on account of the erroneous payment of tax or penalty
9hereunder. In the administration of, and compliance with, this
10Section, the Department and persons who are subject to this
11Section shall have the same rights, remedies, privileges,
12immunities, powers and duties, and be subject to the same
13conditions, restrictions, limitations, penalties and
14definitions of terms, and employ the same modes of procedure,
15as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j,
162 through 2-65 (in respect to all provisions therein other than
17the State rate of tax), 2c, 3 (except as to the disposition of
18taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
195g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
20and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
21the Uniform Penalty and Interest Act as fully as if those
22provisions were set forth herein.
23    No municipality may impose a tax under this Section unless
24the municipality also imposes a tax at the same rate under
25Section 8-11-1.4 of this Code.
26    Persons subject to any tax imposed pursuant to the

 

 

HB2958- 12 -LRB101 06247 HLH 51273 b

1authority granted in this Section may reimburse themselves for
2their seller's tax liability hereunder by separately stating
3such tax as an additional charge, which charge may be stated in
4combination, in a single amount, with State tax which sellers
5are required to collect under the Use Tax Act, pursuant to such
6bracket schedules as the Department may prescribe.
7    Whenever the Department determines that a refund should be
8made under this Section to a claimant instead of issuing a
9credit memorandum, the Department shall notify the State
10Comptroller, who shall cause the order to be drawn for the
11amount specified, and to the person named, in such notification
12from the Department. Such refund shall be paid by the State
13Treasurer out of the non-home rule municipal retailers'
14occupation tax fund.
15    The Department shall forthwith pay over to the State
16Treasurer, ex officio, as trustee, all taxes and penalties
17collected hereunder.
18    As soon as possible after the first day of each month,
19beginning January 1, 2011, upon certification of the Department
20of Revenue, the Comptroller shall order transferred, and the
21Treasurer shall transfer, to the STAR Bonds Revenue Fund the
22local sales tax increment, as defined in the Innovation
23Development and Economy Act, collected under this Section
24during the second preceding calendar month for sales within a
25STAR bond district.
26    After the monthly transfer to the STAR Bonds Revenue Fund,

 

 

HB2958- 13 -LRB101 06247 HLH 51273 b

1on or before the 25th day of each calendar month, the
2Department shall prepare and certify to the Comptroller the
3disbursement of stated sums of money to named municipalities,
4the municipalities to be those from which retailers have paid
5taxes or penalties hereunder to the Department during the
6second preceding calendar month. The amount to be paid to each
7municipality shall be the amount (not including credit
8memoranda) collected hereunder during the second preceding
9calendar month by the Department plus an amount the Department
10determines is necessary to offset any amounts which were
11erroneously paid to a different taxing body, and not including
12an amount equal to the amount of refunds made during the second
13preceding calendar month by the Department on behalf of such
14municipality, and not including any amount which the Department
15determines is necessary to offset any amounts which were
16payable to a different taxing body but were erroneously paid to
17the municipality, and not including any amounts that are
18transferred to the STAR Bonds Revenue Fund, less 1.5% of the
19remainder, which the Department shall transfer into the Tax
20Compliance and Administration Fund. The Department, at the time
21of each monthly disbursement to the municipalities, shall
22prepare and certify to the State Comptroller the amount to be
23transferred into the Tax Compliance and Administration Fund
24under this Section. Within 10 days after receipt, by the
25Comptroller, of the disbursement certification to the
26municipalities and the Tax Compliance and Administration Fund

 

 

HB2958- 14 -LRB101 06247 HLH 51273 b

1provided for in this Section to be given to the Comptroller by
2the Department, the Comptroller shall cause the orders to be
3drawn for the respective amounts in accordance with the
4directions contained in such certification.
5    For the purpose of determining the local governmental unit
6whose tax is applicable, a retail sale, by a producer of coal
7or other mineral mined in Illinois, is a sale at retail at the
8place where the coal or other mineral mined in Illinois is
9extracted from the earth. This paragraph does not apply to coal
10or other mineral when it is delivered or shipped by the seller
11to the purchaser at a point outside Illinois so that the sale
12is exempt under the Federal Constitution as a sale in
13interstate or foreign commerce.
14    Nothing in this Section shall be construed to authorize a
15municipality to impose a tax upon the privilege of engaging in
16any business which under the constitution of the United States
17may not be made the subject of taxation by this State.
18    When certifying the amount of a monthly disbursement to a
19municipality under this Section, the Department shall increase
20or decrease such amount by an amount necessary to offset any
21misallocation of previous disbursements. The offset amount
22shall be the amount erroneously disbursed within the previous 6
23months from the time a misallocation is discovered.
24    The Department of Revenue shall implement Public Act 91-649
25this amendatory Act of the 91st General Assembly so as to
26collect the tax on and after January 1, 2002.

 

 

HB2958- 15 -LRB101 06247 HLH 51273 b

1    As used in this Section, "municipal" and "municipality"
2means a city, village or incorporated town, including an
3incorporated town which has superseded a civil township.
4    This Section shall be known and may be cited as the
5"Non-Home Rule Municipal Retailers' Occupation Tax Act".
6(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
7100-587, eff. 6-4-18; 100-1171, eff. 1-4-19; revised 1-9-19.)
 
8    (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)
9    Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
10Tax Act. The corporate authorities of a non-home rule
11municipality may impose a tax upon all persons engaged, in such
12municipality, in the business of making sales of service for
13expenditure on public infrastructure or for property tax relief
14or both as defined in Section 8-11-1.2 if approved by
15referendum as provided in Section 8-11-1.1, of the selling
16price of all tangible personal property transferred by such
17servicemen either in the form of tangible personal property or
18in the form of real estate as an incident to a sale of service.
19If the tax is approved by referendum on or after July 14, 2010
20(the effective date of Public Act 96-1057), the corporate
21authorities of a non-home rule municipality may, until December
2231, 2020, use the proceeds of the tax for expenditure on
23municipal operations, in addition to or in lieu of any
24expenditure on public infrastructure or for property tax
25relief. The tax imposed may not be more than 1% and may be

 

 

HB2958- 16 -LRB101 06247 HLH 51273 b

1imposed only in 1/4% increments. The tax may not be imposed on
2tangible personal property taxed at the 1% rate under the
3Service Occupation Tax Act. The tax imposed by a municipality
4pursuant to this Section and all civil penalties that may be
5assessed as an incident thereof shall be collected and enforced
6by the State Department of Revenue, except that a municipality
7may, by ordinance, provide that the tax shall be collected and
8enforced by the municipality. If the tax is collected and
9enforced by the municipality, none of the proceeds collected
10from the tax shall be transferred into the Tax Compliance and
11Administration Fund. The certificate of registration which is
12issued by the Department to a retailer under the Retailers'
13Occupation Tax Act or under the Service Occupation Tax Act
14shall permit such registrant to engage in a business which is
15taxable under any ordinance or resolution enacted pursuant to
16this Section without registering separately with the
17Department under such ordinance or resolution or under this
18Section. The Department shall have full power to administer and
19enforce this Section; to collect all taxes and penalties due
20hereunder; to dispose of taxes and penalties so collected in
21the manner hereinafter provided, and to determine all rights to
22credit memoranda arising on account of the erroneous payment of
23tax or penalty hereunder. In the administration of, and
24compliance with, this Section the Department and persons who
25are subject to this Section shall have the same rights,
26remedies, privileges, immunities, powers and duties, and be

 

 

HB2958- 17 -LRB101 06247 HLH 51273 b

1subject to the same conditions, restrictions, limitations,
2penalties and definitions of terms, and employ the same modes
3of procedure, as are prescribed in Sections 1a-1, 2, 2a, 3
4through 3-50 (in respect to all provisions therein other than
5the State rate of tax), 4 (except that the reference to the
6State shall be to the taxing municipality), 5, 7, 8 (except
7that the jurisdiction to which the tax shall be a debt to the
8extent indicated in that Section 8 shall be the taxing
9municipality), 9 (except as to the disposition of taxes and
10penalties collected, and except that the returned merchandise
11credit for this municipal tax may not be taken against any
12State tax), 10, 11, 12 (except the reference therein to Section
132b of the Retailers' Occupation Tax Act), 13 (except that any
14reference to the State shall mean the taxing municipality), the
15first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
16Service Occupation Tax Act and Section 3-7 of the Uniform
17Penalty and Interest Act, as fully as if those provisions were
18set forth herein.
19    No municipality may impose a tax under this Section unless
20the municipality also imposes a tax at the same rate under
21Section 8-11-1.3 of this Code.
22    Persons subject to any tax imposed pursuant to the
23authority granted in this Section may reimburse themselves for
24their serviceman's tax liability hereunder by separately
25stating such tax as an additional charge, which charge may be
26stated in combination, in a single amount, with State tax which

 

 

HB2958- 18 -LRB101 06247 HLH 51273 b

1servicemen are authorized to collect under the Service Use Tax
2Act, pursuant to such bracket schedules as the Department may
3prescribe.
4    Whenever the Department determines that a refund should be
5made under this Section to a claimant instead of issuing credit
6memorandum, the Department shall notify the State Comptroller,
7who shall cause the order to be drawn for the amount specified,
8and to the person named, in such notification from the
9Department. Such refund shall be paid by the State Treasurer
10out of the municipal retailers' occupation tax fund.
11    The Department shall forthwith pay over to the State
12Treasurer, ex officio, as trustee, all taxes and penalties
13collected hereunder.
14    As soon as possible after the first day of each month,
15beginning January 1, 2011, upon certification of the Department
16of Revenue, the Comptroller shall order transferred, and the
17Treasurer shall transfer, to the STAR Bonds Revenue Fund the
18local sales tax increment, as defined in the Innovation
19Development and Economy Act, collected under this Section
20during the second preceding calendar month for sales within a
21STAR bond district.
22    After the monthly transfer to the STAR Bonds Revenue Fund,
23on or before the 25th day of each calendar month, the
24Department shall prepare and certify to the Comptroller the
25disbursement of stated sums of money to named municipalities,
26the municipalities to be those from which suppliers and

 

 

HB2958- 19 -LRB101 06247 HLH 51273 b

1servicemen have paid taxes or penalties hereunder to the
2Department during the second preceding calendar month. The
3amount to be paid to each municipality shall be the amount (not
4including credit memoranda) collected hereunder during the
5second preceding calendar month by the Department, and not
6including an amount equal to the amount of refunds made during
7the second preceding calendar month by the Department on behalf
8of such municipality, and not including any amounts that are
9transferred to the STAR Bonds Revenue Fund, less 1.5% of the
10remainder, which the Department shall transfer into the Tax
11Compliance and Administration Fund. The Department, at the time
12of each monthly disbursement to the municipalities, shall
13prepare and certify to the State Comptroller the amount to be
14transferred into the Tax Compliance and Administration Fund
15under this Section. Within 10 days after receipt, by the
16Comptroller, of the disbursement certification to the
17municipalities, the General Revenue Fund, and the Tax
18Compliance and Administration Fund provided for in this Section
19to be given to the Comptroller by the Department, the
20Comptroller shall cause the orders to be drawn for the
21respective amounts in accordance with the directions contained
22in such certification.
23    The Department of Revenue shall implement Public Act 91-649
24this amendatory Act of the 91st General Assembly so as to
25collect the tax on and after January 1, 2002.
26    Nothing in this Section shall be construed to authorize a

 

 

HB2958- 20 -LRB101 06247 HLH 51273 b

1municipality to impose a tax upon the privilege of engaging in
2any business which under the constitution of the United States
3may not be made the subject of taxation by this State.
4    As used in this Section, "municipal" or "municipality"
5means or refers to a city, village or incorporated town,
6including an incorporated town which has superseded a civil
7township.
8    This Section shall be known and may be cited as the
9"Non-Home Rule Municipal Service Occupation Tax Act".
10(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
11100-1171, eff. 1-4-19; revised 1-9-19.)
 
12    (65 ILCS 5/8-11-1.6)
13    Sec. 8-11-1.6. Non-home rule municipal retailers'
14occupation tax; municipalities between 20,000 and 25,000. The
15corporate authorities of a non-home rule municipality with a
16population of more than 20,000 but less than 25,000 that has,
17prior to January 1, 1987, established a Redevelopment Project
18Area that has been certified as a State Sales Tax Boundary and
19has issued bonds or otherwise incurred indebtedness to pay for
20costs in excess of $5,000,000, which is secured in part by a
21tax increment allocation fund, in accordance with the
22provisions of Division 11-74.4 of this Code may, by passage of
23an ordinance, impose a tax upon all persons engaged in the
24business of selling tangible personal property, other than on
25an item of tangible personal property that is titled and

 

 

HB2958- 21 -LRB101 06247 HLH 51273 b

1registered by an agency of this State's Government, at retail
2in the municipality. This tax may not be imposed on tangible
3personal property taxed at the 1% rate under the Retailers'
4Occupation Tax Act. If imposed, the tax shall only be imposed
5in .25% increments of the gross receipts from such sales made
6in the course of business. Any tax imposed by a municipality
7under this Section and all civil penalties that may be assessed
8as an incident thereof shall be collected and enforced by the
9State Department of Revenue, except that a municipality may, by
10ordinance, provide that the tax shall be collected and enforced
11by the municipality. If the tax is collected and enforced by
12the municipality, none of the proceeds collected from the tax
13shall be transferred into the Tax Compliance and Administration
14Fund. An ordinance imposing a tax hereunder or effecting a
15change in the rate thereof shall be adopted and a certified
16copy thereof filed with the Department on or before the first
17day of October, whereupon the Department shall proceed to
18administer and enforce this Section as of the first day of
19January next following such adoption and filing. The
20certificate of registration that is issued by the Department to
21a retailer under the Retailers' Occupation Tax Act shall permit
22the retailer to engage in a business that is taxable under any
23ordinance or resolution enacted under this Section without
24registering separately with the Department under the ordinance
25or resolution or under this Section. The Department shall have
26full power to administer and enforce this Section, to collect

 

 

HB2958- 22 -LRB101 06247 HLH 51273 b

1all taxes and penalties due hereunder, to dispose of taxes and
2penalties so collected in the manner hereinafter provided, and
3to determine all rights to credit memoranda, arising on account
4of the erroneous payment of tax or penalty hereunder. In the
5administration of, and compliance with this Section, the
6Department and persons who are subject to this Section shall
7have the same rights, remedies, privileges, immunities,
8powers, and duties, and be subject to the same conditions,
9restrictions, limitations, penalties, and definitions of
10terms, and employ the same modes of procedure, as are
11prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
12through 2-65 (in respect to all provisions therein other than
13the State rate of tax), 2c, 3 (except as to the disposition of
14taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
155g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
16and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
17the Uniform Penalty and Interest Act as fully as if those
18provisions were set forth herein.
19    A tax may not be imposed by a municipality under this
20Section unless the municipality also imposes a tax at the same
21rate under Section 8-11-1.7 of this Act.
22    Persons subject to any tax imposed under the authority
23granted in this Section may reimburse themselves for their
24seller's tax liability hereunder by separately stating the tax
25as an additional charge, which charge may be stated in
26combination, in a single amount, with State tax which sellers

 

 

HB2958- 23 -LRB101 06247 HLH 51273 b

1are required to collect under the Use Tax Act, pursuant to such
2bracket schedules as the Department may prescribe.
3    Whenever the Department determines that a refund should be
4made under this Section to a claimant, instead of issuing a
5credit memorandum, the Department shall notify the State
6Comptroller, who shall cause the order to be drawn for the
7amount specified, and to the person named in the notification
8from the Department. The refund shall be paid by the State
9Treasurer out of the Non-Home Rule Municipal Retailers'
10Occupation Tax Fund, which is hereby created.
11    The Department shall forthwith pay over to the State
12Treasurer, ex officio, as trustee, all taxes and penalties
13collected hereunder.
14    As soon as possible after the first day of each month,
15beginning January 1, 2011, upon certification of the Department
16of Revenue, the Comptroller shall order transferred, and the
17Treasurer shall transfer, to the STAR Bonds Revenue Fund the
18local sales tax increment, as defined in the Innovation
19Development and Economy Act, collected under this Section
20during the second preceding calendar month for sales within a
21STAR bond district.
22    After the monthly transfer to the STAR Bonds Revenue Fund,
23on or before the 25th day of each calendar month, the
24Department shall prepare and certify to the Comptroller the
25disbursement of stated sums of money to named municipalities,
26the municipalities to be those from which retailers have paid

 

 

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1taxes or penalties hereunder to the Department during the
2second preceding calendar month. The amount to be paid to each
3municipality shall be the amount (not including credit
4memoranda) collected hereunder during the second preceding
5calendar month by the Department plus an amount the Department
6determines is necessary to offset any amounts that were
7erroneously paid to a different taxing body, and not including
8an amount equal to the amount of refunds made during the second
9preceding calendar month by the Department on behalf of the
10municipality, and not including any amount that the Department
11determines is necessary to offset any amounts that were payable
12to a different taxing body but were erroneously paid to the
13municipality, and not including any amounts that are
14transferred to the STAR Bonds Revenue Fund, less 1.5% of the
15remainder, which the Department shall transfer into the Tax
16Compliance and Administration Fund. The Department, at the time
17of each monthly disbursement to the municipalities, shall
18prepare and certify to the State Comptroller the amount to be
19transferred into the Tax Compliance and Administration Fund
20under this Section. Within 10 days after receipt by the
21Comptroller of the disbursement certification to the
22municipalities and the Tax Compliance and Administration Fund
23provided for in this Section to be given to the Comptroller by
24the Department, the Comptroller shall cause the orders to be
25drawn for the respective amounts in accordance with the
26directions contained in the certification.

 

 

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1    For the purpose of determining the local governmental unit
2whose tax is applicable, a retail sale by a producer of coal or
3other mineral mined in Illinois is a sale at retail at the
4place where the coal or other mineral mined in Illinois is
5extracted from the earth. This paragraph does not apply to coal
6or other mineral when it is delivered or shipped by the seller
7to the purchaser at a point outside Illinois so that the sale
8is exempt under the federal Constitution as a sale in
9interstate or foreign commerce.
10    Nothing in this Section shall be construed to authorize a
11municipality to impose a tax upon the privilege of engaging in
12any business which under the constitution of the United States
13may not be made the subject of taxation by this State.
14    When certifying the amount of a monthly disbursement to a
15municipality under this Section, the Department shall increase
16or decrease the amount by an amount necessary to offset any
17misallocation of previous disbursements. The offset amount
18shall be the amount erroneously disbursed within the previous 6
19months from the time a misallocation is discovered.
20    As used in this Section, "municipal" and "municipality"
21means a city, village, or incorporated town, including an
22incorporated town that has superseded a civil township.
23(Source: P.A. 99-217, eff. 7-31-15; 99-642, eff. 7-28-16;
24100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 100-863, eff.
258-14-18; 100-1171, eff. 1-4-19; revised 1-9-19.)
 

 

 

HB2958- 26 -LRB101 06247 HLH 51273 b

1    (65 ILCS 5/8-11-1.7)
2    Sec. 8-11-1.7. Non-home rule municipal service occupation
3tax; municipalities between 20,000 and 25,000. The corporate
4authorities of a non-home rule municipality with a population
5of more than 20,000 but less than 25,000 as determined by the
6last preceding decennial census that has, prior to January 1,
71987, established a Redevelopment Project Area that has been
8certified as a State Sales Tax Boundary and has issued bonds or
9otherwise incurred indebtedness to pay for costs in excess of
10$5,000,000, which is secured in part by a tax increment
11allocation fund, in accordance with the provisions of Division
1211-74.4 of this Code may, by passage of an ordinance, impose a
13tax upon all persons engaged in the municipality in the
14business of making sales of service. If imposed, the tax shall
15only be imposed in .25% increments of the selling price of all
16tangible personal property transferred by such servicemen
17either in the form of tangible personal property or in the form
18of real estate as an incident to a sale of service. This tax
19may not be imposed on tangible personal property taxed at the
201% rate under the Service Occupation Tax Act. The tax imposed
21by a municipality under this Section and all civil penalties
22that may be assessed as an incident thereof shall be collected
23and enforced by the State Department of Revenue, except that a
24municipality may, by ordinance, provide that the tax shall be
25collected and enforced by the municipality. If the tax is
26collected and enforced by the municipality, none of the

 

 

HB2958- 27 -LRB101 06247 HLH 51273 b

1proceeds collected from the tax shall be transferred into the
2Tax Compliance and Administration Fund. An ordinance imposing a
3tax hereunder or effecting a change in the rate thereof shall
4be adopted and a certified copy thereof filed with the
5Department on or before the first day of October, whereupon the
6Department shall proceed to administer and enforce this Section
7as of the first day of January next following such adoption and
8filing. The certificate of registration that is issued by the
9Department to a retailer under the Retailers' Occupation Tax
10Act or under the Service Occupation Tax Act shall permit the
11registrant to engage in a business that is taxable under any
12ordinance or resolution enacted under this Section without
13registering separately with the Department under the ordinance
14or resolution or under this Section. The Department shall have
15full power to administer and enforce this Section, to collect
16all taxes and penalties due hereunder, to dispose of taxes and
17penalties so collected in a manner hereinafter provided, and to
18determine all rights to credit memoranda arising on account of
19the erroneous payment of tax or penalty hereunder. In the
20administration of and compliance with this Section, the
21Department and persons who are subject to this Section shall
22have the same rights, remedies, privileges, immunities,
23powers, and duties, and be subject to the same conditions,
24restrictions, limitations, penalties and definitions of terms,
25and employ the same modes of procedure, as are prescribed in
26Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all

 

 

HB2958- 28 -LRB101 06247 HLH 51273 b

1provisions therein other than the State rate of tax), 4 (except
2that the reference to the State shall be to the taxing
3municipality), 5, 7, 8 (except that the jurisdiction to which
4the tax shall be a debt to the extent indicated in that Section
58 shall be the taxing municipality), 9 (except as to the
6disposition of taxes and penalties collected, and except that
7the returned merchandise credit for this municipal tax may not
8be taken against any State tax), 10, 11, 12, (except the
9reference therein to Section 2b of the Retailers' Occupation
10Tax Act), 13 (except that any reference to the State shall mean
11the taxing municipality), the first paragraph of Sections 15,
1216, 17, 18, 19, and 20 of the Service Occupation Tax Act and
13Section 3-7 of the Uniform Penalty and Interest Act, as fully
14as if those provisions were set forth herein.
15    A tax may not be imposed by a municipality under this
16Section unless the municipality also imposes a tax at the same
17rate under Section 8-11-1.6 of this Act.
18    Person subject to any tax imposed under the authority
19granted in this Section may reimburse themselves for their
20servicemen's tax liability hereunder by separately stating the
21tax as an additional charge, which charge may be stated in
22combination, in a single amount, with State tax that servicemen
23are authorized to collect under the Service Use Tax Act, under
24such bracket schedules as the Department may prescribe.
25    Whenever the Department determines that a refund should be
26made under this Section to a claimant instead of issuing credit

 

 

HB2958- 29 -LRB101 06247 HLH 51273 b

1memorandum, the Department shall notify the State Comptroller,
2who shall cause the order to be drawn for the amount specified,
3and to the person named, in such notification from the
4Department. The refund shall be paid by the State Treasurer out
5of the Non-Home Rule Municipal Retailers' Occupation Tax Fund.
6    The Department shall forthwith pay over to the State
7Treasurer, ex officio, as trustee, all taxes and penalties
8collected hereunder.
9    As soon as possible after the first day of each month,
10beginning January 1, 2011, upon certification of the Department
11of Revenue, the Comptroller shall order transferred, and the
12Treasurer shall transfer, to the STAR Bonds Revenue Fund the
13local sales tax increment, as defined in the Innovation
14Development and Economy Act, collected under this Section
15during the second preceding calendar month for sales within a
16STAR bond district.
17    After the monthly transfer to the STAR Bonds Revenue Fund,
18on or before the 25th day of each calendar month, the
19Department shall prepare and certify to the Comptroller the
20disbursement of stated sums of money to named municipalities,
21the municipalities to be those from which suppliers and
22servicemen have paid taxes or penalties hereunder to the
23Department during the second preceding calendar month. The
24amount to be paid to each municipality shall be the amount (not
25including credit memoranda) collected hereunder during the
26second preceding calendar month by the Department, and not

 

 

HB2958- 30 -LRB101 06247 HLH 51273 b

1including an amount equal to the amount of refunds made during
2the second preceding calendar month by the Department on behalf
3of such municipality, and not including any amounts that are
4transferred to the STAR Bonds Revenue Fund, less 1.5% of the
5remainder, which the Department shall transfer into the Tax
6Compliance and Administration Fund. The Department, at the time
7of each monthly disbursement to the municipalities, shall
8prepare and certify to the State Comptroller the amount to be
9transferred into the Tax Compliance and Administration Fund
10under this Section. Within 10 days after receipt by the
11Comptroller of the disbursement certification to the
12municipalities, the Tax Compliance and Administration Fund,
13and the General Revenue Fund, provided for in this Section to
14be given to the Comptroller by the Department, the Comptroller
15shall cause the orders to be drawn for the respective amounts
16in accordance with the directions contained in the
17certification.
18    When certifying the amount of a monthly disbursement to a
19municipality under this Section, the Department shall increase
20or decrease the amount by an amount necessary to offset any
21misallocation of previous disbursements. The offset amount
22shall be the amount erroneously disbursed within the previous 6
23months from the time a misallocation is discovered.
24    Nothing in this Section shall be construed to authorize a
25municipality to impose a tax upon the privilege of engaging in
26any business which under the constitution of the United States

 

 

HB2958- 31 -LRB101 06247 HLH 51273 b

1may not be made the subject of taxation by this State.
2(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
3100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised 1-9-19.)
 
4    (65 ILCS 5/8-11-5)  (from Ch. 24, par. 8-11-5)
5    Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
6Act. The corporate authorities of a home rule municipality may
7impose a tax upon all persons engaged, in such municipality, in
8the business of making sales of service at the same rate of tax
9imposed pursuant to Section 8-11-1, of the selling price of all
10tangible personal property transferred by such servicemen
11either in the form of tangible personal property or in the form
12of real estate as an incident to a sale of service. If imposed,
13such tax shall only be imposed in 1/4% increments. On and after
14September 1, 1991, this additional tax may not be imposed on
15tangible personal property taxed at the 1% rate under the
16Retailers' Occupation Tax Act. The tax imposed by a home rule
17municipality pursuant to this Section and all civil penalties
18that may be assessed as an incident thereof shall be collected
19and enforced by the State Department of Revenue, except that a
20municipality may, by ordinance, provide that the tax shall be
21collected and enforced by the municipality. If the tax is
22collected and enforced by the municipality, none of the
23proceeds collected from the tax shall be transferred into the
24Tax Compliance and Administration Fund. The certificate of
25registration which is issued by the Department to a retailer

 

 

HB2958- 32 -LRB101 06247 HLH 51273 b

1under the Retailers' Occupation Tax Act or under the Service
2Occupation Tax Act shall permit such registrant to engage in a
3business which is taxable under any ordinance or resolution
4enacted pursuant to this Section without registering
5separately with the Department under such ordinance or
6resolution or under this Section. The Department shall have
7full power to administer and enforce this Section; to collect
8all taxes and penalties due hereunder; to dispose of taxes and
9penalties so collected in the manner hereinafter provided, and
10to determine all rights to credit memoranda arising on account
11of the erroneous payment of tax or penalty hereunder. In the
12administration of, and compliance with, this Section the
13Department and persons who are subject to this Section shall
14have the same rights, remedies, privileges, immunities, powers
15and duties, and be subject to the same conditions,
16restrictions, limitations, penalties and definitions of terms,
17and employ the same modes of procedure, as are prescribed in
18Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
19provisions therein other than the State rate of tax), 4 (except
20that the reference to the State shall be to the taxing
21municipality), 5, 7, 8 (except that the jurisdiction to which
22the tax shall be a debt to the extent indicated in that Section
238 shall be the taxing municipality), 9 (except as to the
24disposition of taxes and penalties collected, and except that
25the returned merchandise credit for this municipal tax may not
26be taken against any State tax), 10, 11, 12 (except the

 

 

HB2958- 33 -LRB101 06247 HLH 51273 b

1reference therein to Section 2b of the Retailers' Occupation
2Tax Act), 13 (except that any reference to the State shall mean
3the taxing municipality), the first paragraph of Section 15,
416, 17 (except that credit memoranda issued hereunder may not
5be used to discharge any State tax liability), 18, 19 and 20 of
6the Service Occupation Tax Act and Section 3-7 of the Uniform
7Penalty and Interest Act, as fully as if those provisions were
8set forth herein.
9    No tax may be imposed by a home rule municipality pursuant
10to this Section unless such municipality also imposes a tax at
11the same rate pursuant to Section 8-11-1 of this Act.
12    Persons subject to any tax imposed pursuant to the
13authority granted in this Section may reimburse themselves for
14their serviceman's tax liability hereunder by separately
15stating such tax as an additional charge, which charge may be
16stated in combination, in a single amount, with State tax which
17servicemen are authorized to collect under the Service Use Tax
18Act, pursuant to such bracket schedules as the Department may
19prescribe.
20    Whenever the Department determines that a refund should be
21made under this Section to a claimant instead of issuing credit
22memorandum, the Department shall notify the State Comptroller,
23who shall cause the order to be drawn for the amount specified,
24and to the person named, in such notification from the
25Department. Such refund shall be paid by the State Treasurer
26out of the home rule municipal retailers' occupation tax fund.

 

 

HB2958- 34 -LRB101 06247 HLH 51273 b

1    The Department shall forthwith pay over to the State
2Treasurer, ex officio ex-officio, as trustee, all taxes and
3penalties collected hereunder.
4    As soon as possible after the first day of each month,
5beginning January 1, 2011, upon certification of the Department
6of Revenue, the Comptroller shall order transferred, and the
7Treasurer shall transfer, to the STAR Bonds Revenue Fund the
8local sales tax increment, as defined in the Innovation
9Development and Economy Act, collected under this Section
10during the second preceding calendar month for sales within a
11STAR bond district.
12    After the monthly transfer to the STAR Bonds Revenue Fund,
13on or before the 25th day of each calendar month, the
14Department shall prepare and certify to the Comptroller the
15disbursement of stated sums of money to named municipalities,
16the municipalities to be those from which suppliers and
17servicemen have paid taxes or penalties hereunder to the
18Department during the second preceding calendar month. The
19amount to be paid to each municipality shall be the amount (not
20including credit memoranda) collected hereunder during the
21second preceding calendar month by the Department, and not
22including an amount equal to the amount of refunds made during
23the second preceding calendar month by the Department on behalf
24of such municipality, and not including any amounts that are
25transferred to the STAR Bonds Revenue Fund, less 1.5% of the
26remainder, which the Department shall transfer into the Tax

 

 

HB2958- 35 -LRB101 06247 HLH 51273 b

1Compliance and Administration Fund. The Department, at the time
2of each monthly disbursement to the municipalities, shall
3prepare and certify to the State Comptroller the amount to be
4transferred into the Tax Compliance and Administration Fund
5under this Section. Within 10 days after receipt, by the
6Comptroller, of the disbursement certification to the
7municipalities and the Tax Compliance and Administration Fund
8provided for in this Section to be given to the Comptroller by
9the Department, the Comptroller shall cause the orders to be
10drawn for the respective amounts in accordance with the
11directions contained in such certification.
12    In addition to the disbursement required by the preceding
13paragraph and in order to mitigate delays caused by
14distribution procedures, an allocation shall, if requested, be
15made within 10 days after January 14, 1991, and in November of
161991 and each year thereafter, to each municipality that
17received more than $500,000 during the preceding fiscal year,
18(July 1 through June 30) whether collected by the municipality
19or disbursed by the Department as required by this Section.
20Within 10 days after January 14, 1991, participating
21municipalities shall notify the Department in writing of their
22intent to participate. In addition, for the initial
23distribution, participating municipalities shall certify to
24the Department the amounts collected by the municipality for
25each month under its home rule occupation and service
26occupation tax during the period July 1, 1989 through June 30,

 

 

HB2958- 36 -LRB101 06247 HLH 51273 b

11990. The allocation within 10 days after January 14, 1991,
2shall be in an amount equal to the monthly average of these
3amounts, excluding the 2 months of highest receipts. Monthly
4average for the period of July 1, 1990 through June 30, 1991
5will be determined as follows: the amounts collected by the
6municipality under its home rule occupation and service
7occupation tax during the period of July 1, 1990 through
8September 30, 1990, plus amounts collected by the Department
9and paid to such municipality through June 30, 1991, excluding
10the 2 months of highest receipts. The monthly average for each
11subsequent period of July 1 through June 30 shall be an amount
12equal to the monthly distribution made to each such
13municipality under the preceding paragraph during this period,
14excluding the 2 months of highest receipts. The distribution
15made in November 1991 and each year thereafter under this
16paragraph and the preceding paragraph shall be reduced by the
17amount allocated and disbursed under this paragraph in the
18preceding period of July 1 through June 30. The Department
19shall prepare and certify to the Comptroller for disbursement
20the allocations made in accordance with this paragraph.
21    Nothing in this Section shall be construed to authorize a
22municipality to impose a tax upon the privilege of engaging in
23any business which under the constitution of the United States
24may not be made the subject of taxation by this State.
25    An ordinance or resolution imposing or discontinuing a tax
26hereunder or effecting a change in the rate thereof shall be

 

 

HB2958- 37 -LRB101 06247 HLH 51273 b

1adopted and a certified copy thereof filed with the Department
2on or before the first day of June, whereupon the Department
3shall proceed to administer and enforce this Section as of the
4first day of September next following such adoption and filing.
5Beginning January 1, 1992, an ordinance or resolution imposing
6or discontinuing the tax hereunder or effecting a change in the
7rate thereof shall be adopted and a certified copy thereof
8filed with the Department on or before the first day of July,
9whereupon the Department shall proceed to administer and
10enforce this Section as of the first day of October next
11following such adoption and filing. Beginning January 1, 1993,
12an ordinance or resolution imposing or discontinuing the tax
13hereunder or effecting a change in the rate thereof shall be
14adopted and a certified copy thereof filed with the Department
15on or before the first day of October, whereupon the Department
16shall proceed to administer and enforce this Section as of the
17first day of January next following such adoption and filing.
18However, a municipality located in a county with a population
19in excess of 3,000,000 that elected to become a home rule unit
20at the general primary election in 1994 may adopt an ordinance
21or resolution imposing the tax under this Section and file a
22certified copy of the ordinance or resolution with the
23Department on or before July 1, 1994. The Department shall then
24proceed to administer and enforce this Section as of October 1,
251994. Beginning April 1, 1998, an ordinance or resolution
26imposing or discontinuing the tax hereunder or effecting a

 

 

HB2958- 38 -LRB101 06247 HLH 51273 b

1change in the rate thereof shall either (i) be adopted and a
2certified copy thereof filed with the Department on or before
3the first day of April, whereupon the Department shall proceed
4to administer and enforce this Section as of the first day of
5July next following the adoption and filing; or (ii) be adopted
6and a certified copy thereof filed with the Department on or
7before the first day of October, whereupon the Department shall
8proceed to administer and enforce this Section as of the first
9day of January next following the adoption and filing.
10    Any unobligated balance remaining in the Municipal
11Retailers' Occupation Tax Fund on December 31, 1989, which fund
12was abolished by Public Act 85-1135, and all receipts of
13municipal tax as a result of audits of liability periods prior
14to January 1, 1990, shall be paid into the Local Government Tax
15Fund, for distribution as provided by this Section prior to the
16enactment of Public Act 85-1135. All receipts of municipal tax
17as a result of an assessment not arising from an audit, for
18liability periods prior to January 1, 1990, shall be paid into
19the Local Government Tax Fund for distribution before July 1,
201990, as provided by this Section prior to the enactment of
21Public Act 85-1135, and on and after July 1, 1990, all such
22receipts shall be distributed as provided in Section 6z-18 of
23the State Finance Act.
24    As used in this Section, "municipal" and "municipality"
25means a city, village or incorporated town, including an
26incorporated town which has superseded a civil township.

 

 

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1    This Section shall be known and may be cited as the Home
2Rule Municipal Service Occupation Tax Act.
3(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
4100-1171, eff. 1-4-19; revised 1-9-19.)
 
5    (65 ILCS 5/8-11-6)  (from Ch. 24, par. 8-11-6)
6    Sec. 8-11-6. Home Rule Municipal Use Tax Act.
7    (a) The corporate authorities of a home rule municipality
8may impose a tax upon the privilege of using, in such
9municipality, any item of tangible personal property which is
10purchased at retail from a retailer, and which is titled or
11registered at a location within the corporate limits of such
12home rule municipality with an agency of this State's
13government, at a rate which is an increment of 1/4% and based
14on the selling price of such tangible personal property, as
15"selling price" is defined in the Use Tax Act. In home rule
16municipalities with less than 2,000,000 inhabitants, the tax
17shall be collected by the municipality imposing the tax from
18persons whose Illinois address for titling or registration
19purposes is given as being in such municipality.
20    (b) In home rule municipalities with 2,000,000 or more
21inhabitants, the corporate authorities of the municipality may
22additionally impose a tax beginning July 1, 1991 upon the
23privilege of using in the municipality, any item of tangible
24personal property, other than tangible personal property
25titled or registered with an agency of the State's government,

 

 

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1that is purchased at retail from a retailer located outside the
2corporate limits of the municipality, at a rate that is an
3increment of 1/4% not to exceed 1% and based on the selling
4price of the tangible personal property, as "selling price" is
5defined in the Use Tax Act. Such tax shall be collected from
6the purchaser either by the municipality imposing such tax or
7by the Department of Revenue pursuant to an agreement between
8the Department and the municipality. If the tax is collected
9and enforced by the municipality, none of the proceeds
10collected from the tax shall be transferred into the Tax
11Compliance and Administration Fund.
12    To prevent multiple home rule taxation, the use in a home
13rule municipality of tangible personal property that is
14acquired outside the municipality and caused to be brought into
15the municipality by a person who has already paid a home rule
16municipal tax in another municipality in respect to the sale,
17purchase, or use of that property, shall be exempt to the
18extent of the amount of the tax properly due and paid in the
19other home rule municipality.
20    (c) If a municipality having 2,000,000 or more inhabitants
21imposes the tax authorized by subsection (a), then the tax
22shall be collected by the Illinois Department of Revenue when
23the property is purchased at retail from a retailer in the
24county in which the home rule municipality imposing the tax is
25located, and in all contiguous counties. The tax shall be
26remitted to the State, or an exemption determination must be

 

 

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1obtained from the Department before the title or certificate of
2registration for the property may be issued. The tax or proof
3of exemption may be transmitted to the Department by way of the
4State agency with which, or State officer with whom, the
5tangible personal property must be titled or registered if the
6Department and that agency or State officer determine that this
7procedure will expedite the processing of applications for
8title or registration.
9    The Department shall have full power to administer and
10enforce this Section to collect all taxes, penalties and
11interest due hereunder, to dispose of taxes, penalties and
12interest so collected in the manner hereinafter provided, and
13determine all rights to credit memoranda or refunds arising on
14account of the erroneous payment of tax, penalty or interest
15hereunder. In the administration of and compliance with this
16Section the Department and persons who are subject to this
17Section shall have the same rights, remedies, privileges,
18immunities, powers and duties, and be subject to the same
19conditions, restrictions, limitations, penalties and
20definitions of terms, and employ the same modes of procedure as
21are prescribed in Sections 2 (except the definition of
22"retailer maintaining a place of business in this State"), 3
23(except provisions pertaining to the State rate of tax, and
24except provisions concerning collection or refunding of the tax
25by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22 of the
26Use Tax Act, which are not inconsistent with this Section, as

 

 

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

 

 

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1retained by the State Treasurer to cover the costs incurred by
2the Department in administering and enforcing the provisions of
3this Section. The Department, at the time of each monthly
4disbursement to the municipalities, shall prepare and certify
5to the Comptroller the amount so retained by the State
6Treasurer, which shall be transferred into the Tax Compliance
7and Administration Fund. Within 10 days after receipt by the
8State Comptroller of the disbursement certification to the
9municipalities provided for in this Section to be given to the
10State Comptroller by the Department, the State Comptroller
11shall cause the orders to be drawn for the respective amounts
12in accordance with the directions contained in that
13certification.
14    Any ordinance imposing or discontinuing any tax to be
15collected and enforced by the Department under this Section
16shall be adopted and a certified copy thereof filed with the
17Department on or before October 1, whereupon the Department of
18Revenue shall proceed to administer and enforce this Section on
19behalf of the municipalities as of January 1 next following
20such adoption and filing. Beginning April 1, 1998, any
21ordinance imposing or discontinuing any tax to be collected and
22enforced by the Department under this Section shall either (i)
23be adopted and a certified copy thereof filed with the
24Department on or before April 1, whereupon the Department of
25Revenue shall proceed to administer and enforce this Section on
26behalf of the municipalities as of July 1 next following the

 

 

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1adoption and filing; or (ii) be adopted and a certified copy
2thereof filed with the Department on or before October 1,
3whereupon the Department of Revenue shall proceed to administer
4and enforce this Section on behalf of the municipalities as of
5January 1 next following the adoption and filing.
6    Nothing in this subsection (c) shall prevent a home rule
7municipality from collecting the tax pursuant to subsection (a)
8in any situation where such tax is not collected by the
9Department of Revenue under this subsection (c).
10    (d) Any unobligated balance remaining in the Municipal
11Retailers' Occupation Tax Fund on December 31, 1989, which fund
12was abolished by Public Act 85-1135, and all receipts of
13municipal tax as a result of audits of liability periods prior
14to January 1, 1990, shall be paid into the Local Government Tax
15Fund, for distribution as provided by this Section prior to the
16enactment of Public Act 85-1135. All receipts of municipal tax
17as a result of an assessment not arising from an audit, for
18liability periods prior to January 1, 1990, shall be paid into
19the Local Government Tax Fund for distribution before July 1,
201990, as provided by this Section prior to the enactment of
21Public Act 85-1135, and on and after July 1, 1990, all such
22receipts shall be distributed as provided in Section 6z-18 of
23the State Finance Act.
24    (e) As used in this Section, "Municipal" and "Municipality"
25means a city, village or incorporated town, including an
26incorporated town which has superseded a civil township.

 

 

HB2958- 45 -LRB101 06247 HLH 51273 b

1    (f) This Section shall be known and may be cited as the
2Home Rule Municipal Use Tax Act.
3(Source: P.A. 98-1049, eff. 8-25-14.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.