SB2906 103RD GENERAL ASSEMBLY

LRB103 37797 AWJ 67926 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2906

Introduced 1/26/2024, by Sen. Robert F. Martwick

SYNOPSIS AS INTRODUCED:

55 ILCS 5/5-1008

from Ch. 34, par. 5-1008

Amends the Home Rule County Use Tax Law of the Counties Code. Provides that, if a home rule county imposes a home rule county use tax, then the tax shall be collected by the Department of Revenue when the property is purchased at retail from a retailer in any county in this State other than the home rule county imposing the tax. Includes provisions relating to collection and administration of the tax. Provides that the Department shall not begin collection and enforcement before January 1, 2025. Effective immediately.

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 Counties Code is amended by changing Section 5-1008 as follows:

(55 ILCS 5/5-1008) (from Ch. 34, par. 5-1008)

Sec. 5-1008. Home Rule County Use Tax.

(a) As used in this Section, "Department" means the Department of Revenue.

(b) The corporate authorities of a home rule county may impose a tax upon the privilege of using, in such county, any item of tangible personal property which is purchased at retail from a retailer, and which is titled or registered to a purchaser residing within the corporate limits of such home rule county with an agency of this State's government, at a rate which is an increment of 1/4% and based on the selling price of such tangible personal property, as "selling price" is defined in the "Use Tax Act", approved July 14, 1955, as amended. Such tax shall be collected from persons whose Illinois address for titling or registration purposes is given as being in such county. Except as provided in subsection (c), such Such tax shall be collected by the county imposing such tax.

(c) If a home rule county imposes the tax authorized by subsection (b), then the tax shall be collected by the Department when the property is purchased at retail from a retailer in any county in this State other than the home rule county imposing the tax. The tax shall be remitted to the State or an exemption determination must be obtained from the Department before the title or certificate of registration for the property may be issued. The tax or proof of exemption may be transmitted to the Department by way of the State agency with which, or State officer with whom, the tangible personal property must be titled or registered if the Department and that agency or State officer determine that this procedure will expedite the processing of applications for title or registration.

The Department shall have full power to administer and enforce this subsection, to collect all taxes, penalties, and interest due under this subsection, to dispose of taxes, penalties, and interest so collected in the manner provided in this subsection, and to determine all rights to credit memoranda or refunds arising on account of the erroneous payment of tax, penalty, or interest under this subsection. In the administration of and compliance with this subsection, the Department and persons who are subject to this subsection shall have the same rights, remedies, privileges, immunities, powers, and duties, and be subject to the same conditions, restrictions, limitations, penalties, and definitions of terms, and employ the same modes of procedure as are prescribed in the Use Tax Act (except the definition of "retailer maintaining a place of business in this State" and provisions pertaining to the State rate of tax) and the Uniform Penalty and Interest Act that are not inconsistent with this subsection, as fully as if the Use Tax Act and the Uniform Penalty and Interest Act were set forth in this subsection.

Whenever the Department determines that a refund shall be made under this subsection to a claimant instead of issuing a credit memorandum, the Department shall notify the State Comptroller, who shall cause the order to be drawn for the amount specified and to the person named in the notification from the Department. The refund shall be paid by the State Treasurer out of the home rule county retailers' occupation tax fund.

The Department shall forthwith pay over to the State Treasurer, ex officio, as trustee, for deposit into the home rule county retailers' occupation tax fund, all taxes, penalties, and interest collected under this subsection. On or before the 25th day of each calendar month, the Department shall prepare and certify to the State Comptroller the disbursement of stated sums of money to the named counties, the county in each instance to be that county for which the Department, during the second preceding calendar month, collected county use tax from any person whose Illinois address for titling or registration purposes is given as being in that county. The amount to be paid to each county shall be the amount (not including credit memoranda) collected under this subsection during the second preceding calendar month by the Department, and not including an amount equal to the amount of refunds made during the second preceding calendar month by the Department on behalf of each county, less 2% of the remainder, which the Department shall pay into the Tax Compliance and Administration Fund. The Department, at the time of each monthly disbursement to the counties, shall prepare and certify to the State Comptroller the amount to be paid into the Tax Compliance and Administration Fund under this subsection. Within 10 days after receipt by the State Comptroller of the disbursement certification to the counties and the Tax Compliance and Administration Fund provided for in this subsection to be given to the State Comptroller by the Department, the State Comptroller shall cause the orders to be drawn for the respective amounts in accordance with the directions contained in that certification.

A certified copy of an ordinance imposing or discontinuing the tax to be collected and enforced by the Department under this subsection shall be adopted and either (i) filed with the Department after October 1 but on or before April 1, whereupon the Department shall proceed to administer and enforce this subsection on behalf of the counties as of July 1 next following the adoption and filing; or (ii) filed with the Department after April 1 but on or before October 1, whereupon the Department shall proceed to administer and enforce this subsection on behalf of the counties as of January 1 next following the adoption and filing. No ordinance may be filed with the Department under this subsection before the effective date of this amendatory Act of the 103rd General Assembly. The Department shall not begin collection and enforcement in accordance with this subsection before January 1, 2025.

Nothing in this subsection shall prevent a home rule county from collecting the tax pursuant to subsection (b) in any situation where the tax is not collected by the Department under this subsection.

(d) This Section shall be known and may be cited as the "Home Rule County Use Tax Law".

(Source: P.A. 91-51, eff. 6-30-99.)

Section 99. Effective date. This Act takes effect upon becoming law.