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1 | AN ACT concerning municipalities.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Municipal Code is amended by | ||||||
5 | changing Sections 8-11-6a and 11-74.3-3 and by adding Sections | ||||||
6 | 11-74.3-5 and 11-74.3-6 as follows:
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7 | (65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a)
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8 | Sec. 8-11-6a. Home rule municipalities; preemption of | ||||||
9 | certain taxes. Except
as provided in Sections 8-11-1, 8-11-5, | ||||||
10 | 8-11-6, and 8-11-6b , and 11-74.3-6 on and after
September 1, | ||||||
11 | 1990, no home rule municipality has the
authority to impose, | ||||||
12 | pursuant to its home rule authority, a retailer's
occupation | ||||||
13 | tax, service occupation tax, use tax, sales tax or other
tax on | ||||||
14 | the use, sale or purchase of tangible personal property
based | ||||||
15 | on the gross receipts from such sales or the selling or | ||||||
16 | purchase
price of said tangible personal property. | ||||||
17 | Notwithstanding the foregoing,
this Section does not preempt | ||||||
18 | any home rule imposed tax such as the
following: (1) a tax on | ||||||
19 | alcoholic beverages, whether based on gross receipts,
volume | ||||||
20 | sold or any other measurement; (2) a tax based on the number of | ||||||
21 | units
of cigarettes or tobacco products (provided, however, | ||||||
22 | that a home rule
municipality that has not imposed a tax based | ||||||
23 | on the number of units of
cigarettes or tobacco products before | ||||||
24 | July 1, 1993, shall not impose such a tax
after that date); (3) | ||||||
25 | a tax, however measured, based on
the use of a hotel or motel | ||||||
26 | room or similar facility; (4) a tax, however
measured, on the | ||||||
27 | sale or transfer of real property; (5) a tax, however
measured, | ||||||
28 | on lease receipts; (6) a tax on food prepared for immediate
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29 | consumption and on alcoholic beverages sold by a business which | ||||||
30 | provides
for on premise consumption of said food or alcoholic | ||||||
31 | beverages; or (7)
other taxes not based on the selling or | ||||||
32 | purchase price or gross receipts
from the use, sale or purchase |
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1 | of tangible personal property. This Section
is not intended to | ||||||
2 | affect any existing tax on food and beverages prepared
for | ||||||
3 | immediate consumption on the premises where the sale occurs, or | ||||||
4 | any
existing tax on alcoholic beverages, or any existing tax | ||||||
5 | imposed on the
charge for renting a hotel or motel room, which | ||||||
6 | was in effect January 15,
1988, or any extension of the | ||||||
7 | effective date of such an existing tax by
ordinance of the | ||||||
8 | municipality imposing the tax, which extension is hereby
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9 | authorized, in any non-home rule municipality in which the | ||||||
10 | imposition of
such a tax has been upheld by judicial | ||||||
11 | determination, nor is this Section
intended to preempt the | ||||||
12 | authority granted by Public Act 85-1006. This
Section is a | ||||||
13 | limitation, pursuant to subsection (g) of Section 6 of Article
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14 | VII of the Illinois Constitution, on the power of home rule | ||||||
15 | units to tax.
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16 | (Source: P.A. 91-51, eff. 6-30-99.)
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17 | (65 ILCS 5/11-74.3-3) (from Ch. 24, par. 11-74.3-3)
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18 | Sec. 11-74.3-3. In carrying out a business district | ||||||
19 | development or redevelopment plan,
the corporate authorities | ||||||
20 | of each municipality shall have the following
powers:
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21 | (1) To approve all development and redevelopment | ||||||
22 | proposals for a
business district.
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23 | (2) To exercise the use of eminent domain for the | ||||||
24 | acquisition of real
and personal property for the purpose | ||||||
25 | of a development or redevelopment
project.
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26 | (3) To acquire, manage, convey or otherwise dispose of | ||||||
27 | real and personal
property
according to the provisions of a | ||||||
28 | development or
redevelopment plan.
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29 | (4) To apply for and accept capital grants and loans | ||||||
30 | from the United
States and the State of Illinois, or any | ||||||
31 | instrumentality of the United
States or the State, for | ||||||
32 | business district development and redevelopment.
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33 | (5) To borrow funds as it may be deemed necessary for | ||||||
34 | the purpose of
business district development and | ||||||
35 | redevelopment, and in this connection
issue such |
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1 | obligation or revenue bonds as it shall be deemed | ||||||
2 | necessary,
subject to applicable statutory limitations.
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3 | (6) To enter into contracts with any public or private | ||||||
4 | agency or person.
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5 | (7) To sell, lease, trade or improve real property in | ||||||
6 | connection with business district development and | ||||||
7 | redevelopment
plans.
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8 | (8) To employ all such persons as may be necessary for | ||||||
9 | the planning,
administration and implementation of | ||||||
10 | business district plans.
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11 | (9) To expend such public funds as may be necessary for | ||||||
12 | the planning,
execution and implementation of the business | ||||||
13 | district plans.
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14 | (10) To establish by ordinance or resolution | ||||||
15 | procedures for the
planning, execution and implementation | ||||||
16 | of business district plans.
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17 | (11) To create a Business District Development and | ||||||
18 | Redevelopment
Commission to act as agent for the | ||||||
19 | municipality for the purposes of
business district | ||||||
20 | development and redevelopment.
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21 | (12) To impose a retailers' occupation tax and a | ||||||
22 | service occupation tax in the business district for the | ||||||
23 | planning, execution, and implementation of business | ||||||
24 | district plans and to pay for business district project | ||||||
25 | costs as set forth in the business district plan approved | ||||||
26 | by the municipality. | ||||||
27 | (13) To impose a hotel operators' occupation tax in the | ||||||
28 | business district for the planning, execution, and | ||||||
29 | implementation of business district plans and to pay for | ||||||
30 | the business district project costs as set forth in the | ||||||
31 | business district plan approved by the municipality.
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32 | (14) To issue obligations in one or more series bearing | ||||||
33 | interest at rates determined by the corporate authorities | ||||||
34 | of the municipality by ordinance and secured by the | ||||||
35 | business district tax allocation fund set forth in Section | ||||||
36 | 11-74.3-6 for the business district to provide for the |
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1 | payment of business district project costs.
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2 | This amendatory Act of the 91st General Assembly is | ||||||
3 | declarative of existing
law and is not a new enactment.
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4 | (Source: P.A. 91-418, eff. 1-1-00.)
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5 | (65 ILCS 5/11-74.3-5 new) | ||||||
6 | Sec. 11-74.3-5. Business district; additional procedures | ||||||
7 | for designation of district and approval of development or | ||||||
8 | redevelopment plan. If the corporate authorities of a | ||||||
9 | municipality desire to impose a tax by ordinance pursuant to | ||||||
10 | subsection (12) or (13) of Section 11-74.3-3, the following | ||||||
11 | additional procedures shall apply to the designation of the | ||||||
12 | business district and the approval of the business district | ||||||
13 | development or redevelopment plan: | ||||||
14 | (1) The corporate authorities of the municipality | ||||||
15 | shall hold public hearings at least one week prior to | ||||||
16 | designation of the business district and approval of the | ||||||
17 | business district development or redevelopment plan. | ||||||
18 | (2) The area proposed to be designated as a business | ||||||
19 | district must be contiguous and must include only parcels | ||||||
20 | of real property directly and substantially benefited by | ||||||
21 | the proposed business district development or | ||||||
22 | redevelopment plan. | ||||||
23 | (3) The corporate authorities of the municipality | ||||||
24 | shall make a formal finding of the following: (i) the | ||||||
25 | business district is a blighted area that, by reason of the | ||||||
26 | predominance of defective or inadequate street layout, | ||||||
27 | unsanitary or unsafe conditions, deterioration of site | ||||||
28 | improvements, improper subdivision or obsolete platting, | ||||||
29 | or the existence of conditions which endanger life or | ||||||
30 | property by fire or other causes, or any combination of | ||||||
31 | those factors, retards the provision of housing | ||||||
32 | accommodations or constitutes an economic or social | ||||||
33 | liability or a menace to the public health, safety, morals, | ||||||
34 | or welfare in its present condition and use; and (ii) the | ||||||
35 | business district on the whole has not been subject to |
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1 | growth and development through investment by private | ||||||
2 | enterprises or would not reasonably be anticipated to be | ||||||
3 | developed or redeveloped without the adoption of the | ||||||
4 | business district development or redevelopment plan.
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5 | (4) The proposed business district development or | ||||||
6 | redevelopment plan shall set forth in writing: (i) a | ||||||
7 | specific description of the proposed boundaries of the | ||||||
8 | district, including a map illustrating the boundaries; | ||||||
9 | (ii) a general description of each project proposed to be | ||||||
10 | undertaken within the business district, including a | ||||||
11 | description of the approximate location of each project; | ||||||
12 | (iii) the name of the proposed business district; (iv) the | ||||||
13 | estimated business district project costs; (v) the | ||||||
14 | anticipated source of funds to pay business district | ||||||
15 | project costs; (vi) the anticipated type and terms of any | ||||||
16 | obligations to be issued; and (vii) the rate of any tax to | ||||||
17 | be imposed pursuant to subsection (12) or (13) of Section | ||||||
18 | 11-74.3-3 and the period of time for which the tax shall be | ||||||
19 | imposed. | ||||||
20 | (65 ILCS 5/11-74.3-6 new) | ||||||
21 | Sec. 11-74.3-6. Business district revenue and obligations. | ||||||
22 | (a) If the corporate authorities of a municipality have | ||||||
23 | approved a business district development or redevelopment plan | ||||||
24 | and have elected to impose a tax by ordinance pursuant to | ||||||
25 | subsections (b), (c), or (d) of this Section, each year after | ||||||
26 | the date of the approval of the ordinance and until all | ||||||
27 | business district project costs and all municipal obligations | ||||||
28 | financing the business district project costs, if any, have | ||||||
29 | been paid in accordance with the business district development | ||||||
30 | or redevelopment plan, but in no event longer than 23 years | ||||||
31 | after the date of adoption of the ordinance approving the | ||||||
32 | business district development or redevelopment plan, all | ||||||
33 | amounts generated by the retailers' occupation tax and service | ||||||
34 | occupation tax shall be collected and the tax shall be enforced | ||||||
35 | by the Department of Revenue in the same manner as all |
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1 | retailers' occupation taxes and service occupation taxes | ||||||
2 | imposed in the municipality imposing the tax and all amounts | ||||||
3 | generated by the hotel operators' occupation tax shall be | ||||||
4 | collected and the tax shall be enforced by the municipality in | ||||||
5 | the same manner as all hotel operators' occupation taxes | ||||||
6 | imposed in the municipality imposing the tax. The corporate | ||||||
7 | authorities of the municipality shall deposit the proceeds of | ||||||
8 | the taxes imposed under subsections (b), (c), and (d) into a | ||||||
9 | special fund held by the corporate authorities of the | ||||||
10 | municipality called the Business District Tax Allocation Fund | ||||||
11 | for the purpose of paying business district project costs and | ||||||
12 | obligations incurred in the payment of those costs. | ||||||
13 | (b) The corporate authorities of a municipality that has | ||||||
14 | established a business district under this Division 74.3 may, | ||||||
15 | by ordinance or resolution, impose a Business District | ||||||
16 | Retailers' Occupation Tax upon all persons engaged in the | ||||||
17 | business of selling tangible personal property, other than an | ||||||
18 | item of tangible personal property titled or registered with an | ||||||
19 | agency of this State's government, at retail in the business | ||||||
20 | district at a rate not to exceed 1% of the gross receipts from | ||||||
21 | the sales made in the course of such business, to be imposed | ||||||
22 | only in 0.25% increments. The tax may not be imposed on food | ||||||
23 | for human consumption that is to be consumed off the premises | ||||||
24 | where it is sold (other than alcoholic beverages, soft drinks, | ||||||
25 | and food that has been prepared for immediate consumption) and | ||||||
26 | prescription and nonprescription medicines, drugs, medical | ||||||
27 | appliances, modifications to a motor vehicle for the purpose of | ||||||
28 | rendering it usable by a disabled person, and insulin, urine | ||||||
29 | testing materials, syringes, and needles used by diabetics, for | ||||||
30 | human use. | ||||||
31 | The tax imposed under this subsection and all civil | ||||||
32 | penalties that may be assessed as an incident thereof shall be | ||||||
33 | collected and enforced by the Department of Revenue. The | ||||||
34 | certificate of registration that is issued by the Department to | ||||||
35 | a retailer under the Retailers' Occupation Tax Act shall permit | ||||||
36 | the retailer to engage in a business that is taxable under any |
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1 | ordinance or resolution enacted pursuant to this subsection | ||||||
2 | without registering separately with the Department under such | ||||||
3 | ordinance or resolution or under this subsection. The | ||||||
4 | Department of Revenue shall have full power to administer and | ||||||
5 | enforce this subsection; to collect all taxes and penalties due | ||||||
6 | under this subsection in the manner hereinafter provided; and | ||||||
7 | to determine all rights to credit memoranda arising on account | ||||||
8 | of the erroneous payment of tax or penalty under this | ||||||
9 | subsection. In the administration of, and compliance with, this | ||||||
10 | subsection, the Department and persons who are subject to this | ||||||
11 | subsection shall have the same rights, remedies, privileges, | ||||||
12 | immunities, powers and duties, and be subject to the same | ||||||
13 | conditions, restrictions, limitations, penalties, exclusions, | ||||||
14 | exemptions, and definitions of terms and employ the same modes | ||||||
15 | of procedure, as are prescribed in Sections 1, 1a through 1o, 2 | ||||||
16 | through 2-65 (in respect to all provisions therein other than | ||||||
17 | the State rate of tax), 2c through 2h, 3 (except as to the | ||||||
18 | disposition of taxes and penalties collected), 4, 5, 5a, 5c, | ||||||
19 | 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, | ||||||
20 | 12, 13, and 14 of the Retailers' Occupation Tax Act and all | ||||||
21 | provisions of the Uniform Penalty and Interest Act, as fully as | ||||||
22 | if those provisions were set forth herein. | ||||||
23 | Persons subject to any tax imposed under this subsection | ||||||
24 | may reimburse themselves for their seller's tax liability under | ||||||
25 | this subsection by separately stating the tax as an additional | ||||||
26 | charge, which charge may be stated in combination, in a single | ||||||
27 | amount, with State taxes that sellers are required to collect | ||||||
28 | under the Use Tax Act, in accordance with such bracket | ||||||
29 | schedules as the Department may prescribe. | ||||||
30 | Whenever the Department determines that a refund should be | ||||||
31 | made under this subsection to a claimant instead of issuing a | ||||||
32 | credit memorandum, the Department shall notify the State | ||||||
33 | Comptroller, who shall cause the order to be drawn for the | ||||||
34 | amount specified and to the person named in the notification | ||||||
35 | from the Department. The refund shall be paid by the State | ||||||
36 | Treasurer out of the business district retailers' occupation |
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1 | tax fund. | ||||||
2 | The Department shall immediately pay over to the State | ||||||
3 | Treasurer, ex officio, as trustee, all taxes, penalties, and | ||||||
4 | interest collected under this subsection for deposit into the | ||||||
5 | business district retailers' occupation tax fund. On or before | ||||||
6 | the 25th day of each calendar month, the Department shall | ||||||
7 | prepare and certify to the Comptroller the disbursement of | ||||||
8 | stated sums of money to named municipalities from the business | ||||||
9 | district retailers' occupation tax fund, the municipalities to | ||||||
10 | be those from which retailers have paid taxes or penalties | ||||||
11 | under this subsection to the Department during the second | ||||||
12 | preceding calendar month. The amount to be paid to each | ||||||
13 | municipality shall be the amount (not including credit | ||||||
14 | memoranda) collected under this subsection during the second | ||||||
15 | preceding calendar month by the Department plus an amount the | ||||||
16 | Department determines is necessary to offset any amounts that | ||||||
17 | were erroneously paid to a different taxing body, and not | ||||||
18 | including an amount equal to the amount of refunds made during | ||||||
19 | the second preceding calendar month by the Department, less 2% | ||||||
20 | of that amount, which shall be deposited into the Tax | ||||||
21 | Compliance and Administration Fund and shall be used by the | ||||||
22 | Department, subject to appropriation, to cover the costs of the | ||||||
23 | Department in administering and enforcing the provisions of | ||||||
24 | this subsection, on behalf of such municipality, and not | ||||||
25 | including any amount that the Department determines is | ||||||
26 | necessary to offset any amounts that were payable to a | ||||||
27 | different taxing body but were erroneously paid to the | ||||||
28 | municipality. Within 10 days after receipt by the Comptroller | ||||||
29 | of the disbursement certification to the municipalities | ||||||
30 | provided for in this subsection to be given to the Comptroller | ||||||
31 | by the Department, the Comptroller shall cause the orders to be | ||||||
32 | drawn for the respective amounts in accordance with the | ||||||
33 | directions contained in the certification. The proceeds of the | ||||||
34 | tax paid to municipalities under this subsection shall be | ||||||
35 | deposited into the Business District Tax Allocation Fund by the | ||||||
36 | municipality.
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1 | An ordinance or resolution imposing or discontinuing the | ||||||
2 | tax under this subsection or effecting a change in the rate | ||||||
3 | thereof shall either (i) be adopted and a certified copy | ||||||
4 | thereof filed with the Department on or before the first day of | ||||||
5 | April, whereupon the Department, if all other requirements of | ||||||
6 | this subsection are met, shall proceed to administer and | ||||||
7 | enforce this subsection as of the first day of July next | ||||||
8 | following the adoption and filing; or (ii) be adopted and a | ||||||
9 | certified copy thereof filed with the Department on or before | ||||||
10 | the first day of October, whereupon, if all other requirements | ||||||
11 | of this subsection are met, the Department shall proceed to | ||||||
12 | administer and enforce this subsection as of the first day of | ||||||
13 | January next following the adoption and filing. | ||||||
14 | The Department of Revenue shall not administer or enforce | ||||||
15 | an ordinance imposing, discontinuing, or changing the rate of | ||||||
16 | the tax under this subsection, until the municipality also | ||||||
17 | provides, in the manner prescribed by the Department, the | ||||||
18 | boundaries of the business district in such a way that the | ||||||
19 | Department can determine by its address whether a business is | ||||||
20 | located in the business district. The municipality must provide | ||||||
21 | this boundary information to the Department on or before April | ||||||
22 | 1 for administration and enforcement of the tax under this | ||||||
23 | subsection by the Department beginning on the following July 1 | ||||||
24 | and on or before October 1 for administration and enforcement | ||||||
25 | of the tax under this subsection by the Department beginning on | ||||||
26 | the following January 1. The Department of Revenue shall not | ||||||
27 | administer or enforce any change made to the boundaries of a | ||||||
28 | business district until the municipality reports the boundary | ||||||
29 | change to the Department in the manner prescribed by the | ||||||
30 | Department. The municipality must provide this boundary change | ||||||
31 | information to the Department on or before April 1 for | ||||||
32 | administration and enforcement by the Department of the change | ||||||
33 | beginning on the following July 1 and on or before October 1 | ||||||
34 | for administration and enforcement by the Department of the | ||||||
35 | change beginning on the following January 1. The retailers in | ||||||
36 | the business district shall be responsible for charging the tax |
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1 | imposed under this subsection. If a retailer is incorrectly | ||||||
2 | included or excluded from the list of those required to collect | ||||||
3 | the tax under this subsection, both the Department of Revenue | ||||||
4 | and the retailer shall be held harmless if they reasonably | ||||||
5 | relied on information provided by the municipality. | ||||||
6 | A municipality that imposes the tax under this subsection | ||||||
7 | must submit to the Department of Revenue any other information | ||||||
8 | as the Department may require for the administration and | ||||||
9 | enforcement of the tax.
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10 | When certifying the amount of a monthly disbursement to a | ||||||
11 | municipality under this subsection, the Department shall | ||||||
12 | increase or decrease the amount by an amount necessary to | ||||||
13 | offset any misallocation of previous disbursements. The offset | ||||||
14 | amount shall be the amount erroneously disbursed within the | ||||||
15 | previous 6 months from the time a misallocation is discovered. | ||||||
16 | Nothing in this subsection shall be construed to authorize | ||||||
17 | the municipality to impose a tax upon the privilege of engaging | ||||||
18 | in any business which under the Constitution of the United | ||||||
19 | States may not be made the subject of taxation by this State. | ||||||
20 | If the General Assembly fails to appropriate sufficient | ||||||
21 | funds for the Department of Revenue to implement the | ||||||
22 | administration of the tax imposed under this subsection, then | ||||||
23 | all provisions of this subsection requiring the Department to | ||||||
24 | administer and enforce the tax imposed under this subsection | ||||||
25 | are null and void and the tax imposed under this subsection | ||||||
26 | shall instead be administered and enforced exclusively by each | ||||||
27 | municipality imposing the tax with respect to that | ||||||
28 | municipality's business district.
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29 | If a tax is imposed under this subsection (b), a tax shall | ||||||
30 | also be imposed under subsection (c) of this Section. | ||||||
31 | (c) If a tax has been imposed under subsection (b), a | ||||||
32 | Business District Service Occupation Tax shall also be imposed | ||||||
33 | upon all persons engaged, in the business district, in the | ||||||
34 | business of making sales of service, who, as an incident to | ||||||
35 | making those sales of service, transfer tangible personal | ||||||
36 | property within the business district, either in the form of |
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1 | tangible personal property or in the form of real estate as an | ||||||
2 | incident to a sale of service. The tax shall be imposed at the | ||||||
3 | same rate as the tax imposed in subsection (b) and shall not | ||||||
4 | exceed 1% of the selling price of tangible personal property so | ||||||
5 | transferred within the business district, to be imposed only in | ||||||
6 | 0.25% increments. The tax may not be imposed on food for human | ||||||
7 | consumption that is to be consumed off the premises where it is | ||||||
8 | sold (other than alcoholic beverages, soft drinks, and food | ||||||
9 | that has been prepared for immediate consumption) and | ||||||
10 | prescription and nonprescription medicines, drugs, medical | ||||||
11 | appliances, modifications to a motor vehicle for the purpose of | ||||||
12 | rendering it usable by a disabled person, and insulin, urine | ||||||
13 | testing materials, syringes, and needles used by diabetics, for | ||||||
14 | human use. | ||||||
15 | The tax imposed under this subsection and all civil | ||||||
16 | penalties that may be assessed as an incident thereof shall be | ||||||
17 | collected and enforced by the Department of Revenue. The | ||||||
18 | certificate of registration which is issued by the Department | ||||||
19 | to a retailer under the Retailers' Occupation Tax Act or under | ||||||
20 | the Service Occupation Tax Act shall permit such registrant to | ||||||
21 | engage in a business which is taxable under any ordinance or | ||||||
22 | resolution enacted pursuant to this subsection without | ||||||
23 | registering separately with the Department under such | ||||||
24 | ordinance or resolution or under this subsection. The | ||||||
25 | Department of Revenue shall have full power to administer and | ||||||
26 | enforce this subsection; to collect all taxes and penalties due | ||||||
27 | under this subsection; to dispose of taxes and penalties so | ||||||
28 | collected in the manner hereinafter provided; and to determine | ||||||
29 | all rights to credit memoranda arising on account of the | ||||||
30 | erroneous payment of tax or penalty under this subsection. In | ||||||
31 | the administration of, and compliance with this subsection, the | ||||||
32 | Department and persons who are subject to this subsection shall | ||||||
33 | have the same rights, remedies, privileges, immunities, powers | ||||||
34 | and duties, and be subject to the same conditions, | ||||||
35 | restrictions, limitations, penalties, exclusions, exemptions, | ||||||
36 | and definitions of terms and employ the same modes of procedure |
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1 | as are prescribed in Sections 2, 2a through 2d, 3 through 3-50 | ||||||
2 | (in respect to all provisions therein other than the State rate | ||||||
3 | of tax), 4 (except that the reference to the State shall be to | ||||||
4 | the business district), 5, 7, 8 (except that the jurisdiction | ||||||
5 | to which the tax shall be a debt to the extent indicated in | ||||||
6 | that Section 8 shall be the municipality), 9 (except as to the | ||||||
7 | disposition of taxes and penalties collected, and except that | ||||||
8 | the returned merchandise credit for this tax may not be taken | ||||||
9 | against any State tax), 10, 11, 12 (except the reference | ||||||
10 | therein to Section 2b of the Retailers' Occupation Tax Act), 13 | ||||||
11 | (except that any reference to the State shall mean the | ||||||
12 | municipality), the first paragraph of Section 15, and Sections | ||||||
13 | 16, 17, 18, 19 and 20 of the Service Occupation Tax Act and all | ||||||
14 | provisions of the Uniform Penalty and Interest Act, as fully as | ||||||
15 | if those provisions were set forth herein. | ||||||
16 | Persons subject to any tax imposed under the authority | ||||||
17 | granted in this subsection may reimburse themselves for their | ||||||
18 | serviceman's tax liability hereunder by separately stating the | ||||||
19 | tax as an additional charge, which charge may be stated in | ||||||
20 | combination, in a single amount, with State tax that servicemen | ||||||
21 | are authorized to collect under the Service Use Tax Act, in | ||||||
22 | accordance with such bracket schedules as the Department may | ||||||
23 | prescribe. | ||||||
24 | Whenever the Department determines that a refund should be | ||||||
25 | made under this subsection to a claimant instead of issuing | ||||||
26 | credit memorandum, the Department shall notify the State | ||||||
27 | Comptroller, who shall cause the order to be drawn for the | ||||||
28 | amount specified, and to the person named, in such notification | ||||||
29 | from the Department. Such refund shall be paid by the State | ||||||
30 | Treasurer out of the business district retailers' occupation | ||||||
31 | tax fund. | ||||||
32 | The Department shall forthwith pay over to the State | ||||||
33 | Treasurer, ex-officio, as trustee, all taxes, penalties, and | ||||||
34 | interest collected under this subsection for deposit into the | ||||||
35 | business district retailers' occupation tax fund. On or before | ||||||
36 | the 25th day of each calendar month, the Department shall |
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1 | prepare and certify to the Comptroller the disbursement of | ||||||
2 | stated sums of money to named municipalities from the business | ||||||
3 | district retailers' occupation tax fund, the municipalities to | ||||||
4 | be those from which suppliers and servicemen have paid taxes or | ||||||
5 | penalties under this subsection to the Department during the | ||||||
6 | second preceding calendar month. The amount to be paid to each | ||||||
7 | municipality shall be the amount (not including credit | ||||||
8 | memoranda) collected under this subsection during the second | ||||||
9 | preceding calendar month by the Department, less 2% of that | ||||||
10 | amount, which shall be deposited into the Tax Compliance and | ||||||
11 | Administration Fund and shall be used by the Department, | ||||||
12 | subject to appropriation, to cover the costs of the Department | ||||||
13 | in administering and enforcing the provisions of this | ||||||
14 | subsection, and not including an amount equal to the amount of | ||||||
15 | refunds made during the second preceding calendar month by the | ||||||
16 | Department on behalf of such municipality. Within 10 days after | ||||||
17 | receipt, by the Comptroller, of the disbursement certification | ||||||
18 | to the municipalities, provided for in this subsection to be | ||||||
19 | given to the Comptroller by the Department, the Comptroller | ||||||
20 | shall cause the orders to be drawn for the respective amounts | ||||||
21 | in accordance with the directions contained in such | ||||||
22 | certification. The proceeds of the tax paid to municipalities | ||||||
23 | under this subsection shall be deposited into the Business | ||||||
24 | District Tax Allocation Fund by the municipality. | ||||||
25 | An ordinance or resolution imposing or discontinuing the | ||||||
26 | tax under this subsection or effecting a change in the rate | ||||||
27 | thereof shall either (i) be adopted and a certified copy | ||||||
28 | thereof filed with the Department on or before the first day of | ||||||
29 | April, whereupon the Department, if all other requirements of | ||||||
30 | this subsection are met, shall proceed to administer and | ||||||
31 | enforce this subsection as of the first day of July next | ||||||
32 | following the adoption and filing; or (ii) be adopted and a | ||||||
33 | certified copy thereof filed with the Department on or before | ||||||
34 | the first day of October, whereupon, if all other conditions of | ||||||
35 | this subsection are met, the Department shall proceed to | ||||||
36 | administer and enforce this subsection as of the first day of |
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1 | January next following the adoption and filing. | ||||||
2 | The Department of Revenue shall not administer or enforce | ||||||
3 | an ordinance imposing, discontinuing, or changing the rate of | ||||||
4 | the tax under this subsection, until the municipality also | ||||||
5 | provides, in the manner prescribed by the Department, the | ||||||
6 | boundaries of the business district in such a way that the | ||||||
7 | Department can determine by its address whether a business is | ||||||
8 | located in the business district. The municipality must provide | ||||||
9 | this boundary information to the Department on or before April | ||||||
10 | 1 for administration and enforcement of the tax under this | ||||||
11 | subsection by the Department beginning on the following July 1 | ||||||
12 | and on or before October 1 for administration and enforcement | ||||||
13 | of the tax under this subsection by the Department beginning on | ||||||
14 | the following January 1. The Department of Revenue shall not | ||||||
15 | administer or enforce any change made to the boundaries of a | ||||||
16 | business district until the municipality reports the boundary | ||||||
17 | change to the Department in the manner prescribed by the | ||||||
18 | Department. The municipality must provide this boundary change | ||||||
19 | information to the Department on or before April 1 for | ||||||
20 | administration and enforcement by the Department of the change | ||||||
21 | beginning on the following July 1 and on or before October 1 | ||||||
22 | for administration and enforcement by the Department of the | ||||||
23 | change beginning on the following January 1. The retailers in | ||||||
24 | the business district shall be responsible for charging the tax | ||||||
25 | imposed under this subsection. If a retailer is incorrectly | ||||||
26 | included or excluded from the list of those required to collect | ||||||
27 | the tax under this subsection, both the Department of Revenue | ||||||
28 | and the retailer shall be held harmless if they reasonably | ||||||
29 | relied on information provided by the municipality. | ||||||
30 | A municipality that imposes the tax under this subsection | ||||||
31 | must submit to the Department of Revenue any other information | ||||||
32 | as the Department may require for the administration and | ||||||
33 | enforcement of the tax.
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34 | Nothing in this subsection shall be construed to authorize | ||||||
35 | the municipality to impose a tax upon the privilege of engaging | ||||||
36 | in any business which under the Constitution of the United |
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1 | States may not be made the subject of taxation by the State. | ||||||
2 | If the General Assembly fails to appropriate sufficient | ||||||
3 | funds for the Department of Revenue to implement the | ||||||
4 | administration of the tax imposed under this subsection, then | ||||||
5 | all provisions of this subsection requiring the Department to | ||||||
6 | administer and enforce the tax imposed under this subsection | ||||||
7 | are null and void and the tax imposed under this subsection | ||||||
8 | shall instead be administered and enforced exclusively by each | ||||||
9 | municipality imposing the tax with respect to that | ||||||
10 | municipality's business district.
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11 | If a tax is imposed under this subsection (c), a tax shall | ||||||
12 | also be imposed under subsection (b) of this Section. | ||||||
13 | (d) By ordinance, a municipality that has established a | ||||||
14 | business district under this Division 74.3 may impose an | ||||||
15 | occupation tax upon all persons engaged in the business | ||||||
16 | district in the business of renting, leasing, or letting rooms | ||||||
17 | in a hotel, as defined in the Hotel Operators' Occupation Tax | ||||||
18 | Act, at a rate not to exceed 1% of the gross rental receipts | ||||||
19 | from the renting, leasing, or letting of hotel rooms within the | ||||||
20 | business district, to be imposed only in 0.25% increments, | ||||||
21 | excluding, however, from gross rental receipts the proceeds of | ||||||
22 | renting, leasing, or letting to permanent residents of a hotel, | ||||||
23 | as defined in the Hotel Operators' Occupation Tax Act, and | ||||||
24 | proceeds from the tax imposed under subsection (c) of Section | ||||||
25 | 13 of the Metropolitan Pier and Exposition Authority Act. | ||||||
26 | The tax imposed by the municipality under this subsection | ||||||
27 | and all civil penalties that may be assessed as an incident to | ||||||
28 | that tax shall be collected and enforced by the municipality | ||||||
29 | imposing the tax. The municipality shall have full power to | ||||||
30 | administer and enforce this subsection, to collect all taxes | ||||||
31 | and penalties due under this subsection, to dispose of taxes | ||||||
32 | and penalties so collected in the manner provided in this | ||||||
33 | subsection, and to determine all rights to credit memoranda | ||||||
34 | arising on account of the erroneous payment of tax or penalty | ||||||
35 | under this subsection. In the administration of and compliance | ||||||
36 | with this subsection, the municipality and persons who are |
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1 | subject to this subsection shall have the same rights, | ||||||
2 | remedies, privileges, immunities, powers, and duties, shall be | ||||||
3 | subject to the same conditions, restrictions, limitations, | ||||||
4 | penalties, and definitions of terms, and shall employ the same | ||||||
5 | modes of procedure as are employed with respect to a tax | ||||||
6 | adopted by the municipality under Section 8-3-14 of this Code. | ||||||
7 | Persons subject to any tax imposed under the authority | ||||||
8 | granted in this subsection may reimburse themselves for their | ||||||
9 | tax liability for that tax by separately stating that tax as an | ||||||
10 | additional charge, which charge may be stated in combination, | ||||||
11 | in a single amount, with State taxes imposed under the Hotel | ||||||
12 | Operators' Occupation Tax Act, and with any other tax. | ||||||
13 | Nothing in this subsection shall be construed to authorize | ||||||
14 | a municipality to impose a tax upon the privilege of engaging | ||||||
15 | in any business which under the Constitution of the United | ||||||
16 | States may not be made the subject of taxation by this State. | ||||||
17 | The proceeds of the tax imposed under this subsection shall | ||||||
18 | be deposited into the Business District Tax Allocation Fund.
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19 | (e) Obligations issued pursuant to subsection (14) of | ||||||
20 | Section 11-74.3-3 shall be retired in the manner provided in | ||||||
21 | the ordinance authorizing the issuance of those obligations by | ||||||
22 | the receipts of taxes levied as authorized in subsections (12) | ||||||
23 | and (13) of Section 11-74.3-3. The ordinance shall pledge all | ||||||
24 | of the amounts in and to be deposited in the Business District | ||||||
25 | Tax Allocation Fund to the payment of business district project | ||||||
26 | costs and obligations. Obligations issued pursuant to | ||||||
27 | subsection (14) of Section 11-74.3-3 may be sold at public or | ||||||
28 | private sale at a price determined by the corporate authorities | ||||||
29 | of the municipality and no referendum approval of the electors | ||||||
30 | shall be required as a condition to the issuance of those | ||||||
31 | obligations. The ordinance authorizing the obligations may | ||||||
32 | require that the obligations contain a recital that they are | ||||||
33 | issued pursuant to subsection (14) of Section 11-74.3-3 and | ||||||
34 | this recital shall be conclusive evidence of their validity and | ||||||
35 | of the regularity of their issuance. The corporate authorities | ||||||
36 | of the municipality may also issue its obligations to refund, |
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1 | in whole or in part, obligations previously issued by the | ||||||
2 | municipality under the authority of this Code, whether at or | ||||||
3 | prior to maturity. All obligations issued pursuant to | ||||||
4 | subsection (14) of Section 11-74.3-3 shall not be regarded as | ||||||
5 | indebtedness of the municipality issuing the obligations for | ||||||
6 | the purpose of any limitation imposed by law. | ||||||
7 | (f) When business district costs, including, without | ||||||
8 | limitation, all municipal obligations financing business | ||||||
9 | district project costs incurred under Section 11-74.3-3 have | ||||||
10 | been paid, any surplus funds then remaining in the Business | ||||||
11 | District Tax Allocation Fund shall be distributed to the | ||||||
12 | municipal treasurer for deposit into the municipal general | ||||||
13 | corporate fund. Upon payment of all business district project | ||||||
14 | costs and retirement of obligations, but in no event more than | ||||||
15 | 23 years after the date of adoption of the ordinance approving | ||||||
16 | the business district development or redevelopment plan, the | ||||||
17 | municipality shall adopt an ordinance immediately rescinding | ||||||
18 | the taxes imposed pursuant to subsections (12) and (13) of | ||||||
19 | Section 11-74.3-3.
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20 | Section 99. Effective date. This Act takes effect on | ||||||
21 | January 1, 2005.
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