HB4705 101ST GENERAL ASSEMBLY

LRB101 16521 AWJ 65903 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4705

Introduced 2/18/2020, by Rep. Sonya M. Harper

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.930 new
65 ILCS 5/11-42-1.5 new

Amends the Illinois Municipal Code. Provides that, in addition to any other tax that may be imposed, a municipality may also impose, by ordinance, a tax upon all persons engaged in the municipality in the business of acting as a resale facilitator. Provides that the tax may be imposed, in one cent increments, at a rate not to exceed $0.05 of the selling price of all tickets or other licenses resold by or through the resale facilitator for amusements taking place within the municipality. Provides that the tax does not apply to: (i) the original sale of a ticket or license by the owner, operator, or manager of an amusement, either directly or through a third party; or (ii) resales by or to ticket brokers registered with the Secretary of State under the Ticket Sale and Resale Act. Defines terms. Amends the State Finance Act to create the Municipal Ticket and License Reselling Tax Fund.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning local government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The State Finance Act is amended by adding Section 5.930 as follows:

(30 ILCS 105/5.930 new)

Sec. 5.930. The Municipal Ticket and License Reselling Tax Fund.

Section 10. The Illinois Municipal Code is amended by adding Section 11-42-1.5 as follows:

(65 ILCS 5/11-42-1.5 new)

Sec. 11-42-1.5. Municipal Ticket and License Reselling Tax Law.

(a) As used in this Section:

"License" means a ticket or other license granting the privilege to enter, to witness, to view, or to participate in an amusement or the opportunity to obtain the privilege to enter, to witness, to view, or to participate in an amusement. "License" includes, but is not limited to, a permanent seat license.

"Resale" means the resale of a ticket or other license to an amusement after the ticket or other license has been sold by the owner, manager, or operator of the amusement, or by the owner, manager, or operator of the place where the amusement is being held, to an independent and unrelated third party.

"Resale facilitator" means a person engaged in the business of resale on behalf of the owner of the ticket or other license or assisting the owner in resale of the owner's ticket or other license, whether or not the ticket or other license is resold by bidding, consignment, or otherwise and whether or not the ticket or other license is resold in person, at a site on the Internet, or otherwise. "Resale facilitator" includes, but is not limited to, an auctioneer, a ticket broker, a seller of tickets or other licenses for amusements, or an Internet auction listing service. "Resale facilitator" does not include a person who advertises the availability of a ticket or other license for resale without participating in the resale transaction.

"Reseller" means a person who resells a ticket or other license to an amusement for consideration, whether or not the ticket or other license is resold by bidding, consignment, or otherwise and whether or not the ticket or other license is resold in person, at a site on the Internet, or otherwise. "Reseller" includes, but is not limited to, ticket brokers.

"Selling price" means the total consideration received from the consumer and collected by the reseller or resale facilitator for the purchase of a ticket or license, including any service fees or other charges. "Selling price" includes any local amusement tax on the original sale of the ticket or license that is included in the consideration received, but excludes any federal, State, or local taxes imposed on such resale and any separately stated and optional charges for services or property.

"Ticket" means the privilege to enter, witness, view, or participate in an amusement, whether or not expressed in a tangible form.

(b) Notwithstanding any other provision of law, in addition to any other tax that may be imposed, a municipality may also impose, by ordinance, a tax upon all persons engaged in the municipality in the business of acting as a resale facilitator. The tax may be imposed, in one cent increments, at a rate not to exceed $0.05 of the selling price of all tickets or other licenses resold by or through the resale facilitator for amusements taking place within the municipality. The tax may not be imposed under this Section on: (i) the original sale of a ticket or license by the owner, operator, or manager of an amusement, either directly or through a third party; or (ii) resales to ticket brokers or resales by ticket brokers to ticket brokers, when registered with the Secretary of State under the Ticket Sale and Resale Act.

Persons subject to any tax imposed under the authority granted in this Section may reimburse themselves for their seller's tax liability hereunder by separately stating that tax as an additional charge, which charge may be stated in combination, in a single amount, with State tax which sellers are required to collect under the Use Tax Act, pursuant to such bracket schedules as the Department of Revenue may prescribe.

A tax imposed pursuant to this Section, and all civil penalties that may be assessed as an incident thereof, shall be administered, collected, and enforced by the Department of Revenue in the same manner as the tax imposed under the Retailers' Occupation Tax Act, as now or hereafter amended, insofar as may be practicable; except that in the event of a conflict with the provisions of this Section, this Section shall control. The Department of Revenue shall have full power to: administer and enforce this Section; collect all taxes and penalties due hereunder; dispose of taxes and penalties so collected in the manner hereinafter provided; and determine all rights to credit memoranda arising on account of the erroneous payment of tax or penalty hereunder.

Whenever the Department of Revenue determines that a refund shall be made under this Section to a claimant instead of issuing a credit memorandum, the Department of Revenue 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 of Revenue. The refund shall be paid by the State Treasurer out of the Municipal Ticket and License Reselling Tax Fund.

The Department of Revenue shall immediately pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected under this Section. Those taxes and penalties shall be deposited into the Municipal Ticket and License Reselling Tax Fund, a trust fund created in the State treasury. Moneys in the Municipal Ticket and License Reselling Tax Fund shall be used to make payments to municipalities and for the payment of refunds under this Section.

On or before the 25th day of each calendar month, the Department of Revenue shall prepare and certify to the State Comptroller the disbursement of stated sums of money to named municipalities for which taxpayers have paid taxes or penalties hereunder to the Department of Revenue 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 Section from resellers within the municipality during the second preceding calendar month by the Department of Revenue, plus an amount the Department of Revenue determines is necessary to offset amounts that were erroneously paid to a different municipality, and not including an amount equal to the amount of refunds made during the second preceding calendar month by the Department of Revenue on behalf of the municipality, and not including any amount that the Department of Revenue determines is necessary to offset any amounts that were payable to a different municipality but were erroneously paid to the municipality, less 1.5% of the remainder, which the Comptroller shall transfer into the Tax Compliance and Administration Fund. The Department of Revenue, at the time of each monthly disbursement, shall prepare and certify to the State Comptroller the amount to be transferred into the Tax Compliance and Administration Fund under this Section. Within 10 days after receipt by the Comptroller of the disbursement certification to the municipalities and the Tax Compliance and Administration Fund provided for in this Section to be given to the Comptroller by the Department of Revenue, the Comptroller shall cause the orders to be drawn for the respective amounts in accordance with the directions contained in the certification.

Nothing in this Section 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.

An ordinance or resolution imposing or discontinuing the tax under this Section or effecting a change in the rate thereof shall either: (i) be adopted and a certified copy thereof filed with the Department of Revenue on or before the first day of April, whereupon the Department of Revenue shall proceed to administer and enforce this Section 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 of Revenue on or before the first day of October, whereupon the Department of Revenue shall proceed to administer and enforce this Section as of the first day of January next following the adoption and filing.

(c) This Section shall be known and may be cited as the Municipal Ticket and License Reselling Tax Law.