HB4705 Engrossed LRB093 14711 MKM 40254 b

1     AN ACT concerning local government.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Counties Code is amended by adding Section
5 5-1014.3 as follows:
 
6     (55 ILCS 5/5-1014.3 new)
7     Sec. 5-1014.3. Agreements to share or rebate occupation
8 taxes.
9     (a) On and after June 1, 2004, a county board shall not
10 enter into any agreement to share or rebate any portion of
11 retailers' occupation taxes generated by retail sales of
12 tangible personal property if: (1) the tax on those retail
13 sales, absent the agreement, would have been paid to another
14 unit of local government; and (2) the retailer maintains,
15 within that other unit of local government, a retail location
16 from which the tangible personal property is delivered to
17 purchasers, or a warehouse from which the tangible personal
18 property is delivered to purchasers. Any unit of local
19 government denied retailers' occupation tax revenue because of
20 an agreement that violates this Section may file an action in
21 circuit court against the county. Any agreement entered into
22 prior to June 1, 2004 is not affected by this amendatory Act of
23 the 93rd General Assembly. Any unit of local government that
24 prevails in the circuit court action is entitled to damages in
25 the amount of the tax revenue it was denied as a result of the
26 agreement, statutory interest, costs, reasonable attorney's
27 fees, and an amount equal to 50% of the tax.
28     (b) On and after the effective date of this amendatory Act
29 of the 93rd General Assembly, a home rule unit shall not enter
30 into any agreement prohibited by this Section. This Section is
31 a denial and limitation of home rule powers and functions under
32 subsection (g) of Section 6 of Article VII of the Illinois

 

 

HB4705 Engrossed - 2 - LRB093 14711 MKM 40254 b

1 Constitution.
 
2     Section 10. The Illinois Municipal Code is amended by
3 adding Section 8-11-21 as follows:
 
4     (65 ILCS 5/8-11-21 new)
5     Sec. 8-11-21. Agreements to share or rebate occupation
6 taxes.
7     (a) On and after June 1, 2004, the corporate authorities of
8 a municipality shall not enter into any agreement to share or
9 rebate any portion of retailers' occupation taxes generated by
10 retail sales of tangible personal property if: (1) the tax on
11 those retail sales, absent the agreement, would have been paid
12 to another unit of local government; and (2) the retailer
13 maintains, within that other unit of local government, a retail
14 location from which the tangible personal property is delivered
15 to purchasers, or a warehouse from which the tangible personal
16 property is delivered to purchasers. Any unit of local
17 government denied retailers' occupation tax revenue because of
18 an agreement that violates this Section may file an action in
19 circuit court against the municipality. Any agreement entered
20 into prior to June 1, 2004 is not affected by this amendatory
21 Act of the 93rd General Assembly. Any unit of local government
22 that prevails in the circuit court action is entitled to
23 damages in the amount of the tax revenue it was denied as a
24 result of the agreement, statutory interest, costs, reasonable
25 attorney's fees, and an amount equal to 50% of the tax.
26     (b) On and after the effective date of this amendatory Act
27 of the 93rd General Assembly, a home rule unit shall not enter
28 into any agreement prohibited by this Section. This Section is
29 a denial and limitation of home rule powers and functions under
30 subsection (g) of Section 6 of Article VII of the Illinois
31 Constitution.
 
32     Section 99. Effective date. This Act takes effect upon
33 becoming law.