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1 | AN ACT concerning certain taxes.
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2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Municipal Code is amended by | |||||||||||||||||||
5 | changing Section 8-11-1
as follows:
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6 | (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
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7 | Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax | |||||||||||||||||||
8 | Act. The
corporate authorities of a home rule municipality may
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9 | impose a tax upon all persons engaged in the business of | |||||||||||||||||||
10 | selling tangible
personal property, other than an item of | |||||||||||||||||||
11 | tangible personal property titled
or registered with an agency | |||||||||||||||||||
12 | of this State's government, at retail in the
municipality on | |||||||||||||||||||
13 | the gross receipts from these sales made in
the course of such | |||||||||||||||||||
14 | business. If imposed, the tax shall only
be imposed in .25%
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15 | 1/4% increments. On and after September 1, 1991,
this
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16 | additional tax may not be imposed on the sales of food for | |||||||||||||||||||
17 | human
consumption that is to be consumed off the premises where | |||||||||||||||||||
18 | it
is sold (other than alcoholic beverages, soft drinks and | |||||||||||||||||||
19 | food that has
been prepared for immediate consumption) and | |||||||||||||||||||
20 | prescription and
nonprescription medicines, drugs, medical | |||||||||||||||||||
21 | appliances and insulin, urine
testing materials, syringes and | |||||||||||||||||||
22 | needles used by diabetics. The tax imposed
by a home rule | |||||||||||||||||||
23 | municipality under this Section and all
civil penalties that | |||||||||||||||||||
24 | may be assessed as an incident of the tax shall
be collected | |||||||||||||||||||
25 | and enforced by the State Department of
Revenue. The | |||||||||||||||||||
26 | certificate of registration that is issued by
the Department to | |||||||||||||||||||
27 | a retailer under the Retailers' Occupation Tax Act
shall permit | |||||||||||||||||||
28 | the retailer to engage in a business that is taxable
under any | |||||||||||||||||||
29 | ordinance or resolution enacted pursuant to
this Section | |||||||||||||||||||
30 | without registering separately with the Department under such
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31 | ordinance or resolution or under this Section. The Department | |||||||||||||||||||
32 | shall have
full power to administer and enforce this Section; |
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1 | to collect all taxes and
penalties due hereunder; to dispose of | ||||||
2 | taxes and penalties so collected in
the manner hereinafter | ||||||
3 | provided; and to determine all rights to
credit memoranda | ||||||
4 | arising on account of the erroneous payment of tax or
penalty | ||||||
5 | hereunder. In the administration of, and compliance with, this
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6 | Section the Department and persons who are subject to this | ||||||
7 | Section shall
have the same rights, remedies, privileges, | ||||||
8 | immunities, powers and duties,
and be subject to the same | ||||||
9 | conditions, restrictions, limitations, penalties
and | ||||||
10 | definitions of terms, and employ the same modes of procedure, | ||||||
11 | as are
prescribed in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, | ||||||
12 | 1m, 1n, 2 through
2-65 (in
respect to all provisions therein | ||||||
13 | other than the State rate of tax), 2c, 3
(except as to the | ||||||
14 | disposition of taxes and penalties collected), 4, 5, 5a,
5b, | ||||||
15 | 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, | ||||||
16 | 10, 11,
12 and 13 of the Retailers' Occupation Tax Act and | ||||||
17 | Section 3-7 of the
Uniform Penalty and Interest Act, as fully | ||||||
18 | as if those provisions were
set forth herein.
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19 | No tax may be imposed by a home rule municipality under | ||||||
20 | this Section
unless the municipality also imposes a tax at the | ||||||
21 | same rate under Section
8-11-5 of this Act.
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22 | Persons subject to any tax imposed under the authority | ||||||
23 | granted in this
Section may reimburse themselves for their | ||||||
24 | seller's tax liability hereunder
by separately stating that tax | ||||||
25 | as an additional charge, which charge may be
stated in | ||||||
26 | combination, in a single amount, with State tax which sellers | ||||||
27 | are
required to collect under the Use Tax Act, pursuant to such | ||||||
28 | bracket
schedules as the Department may prescribe.
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29 | Whenever the Department determines that a refund should be | ||||||
30 | made under
this Section to a claimant instead of issuing a | ||||||
31 | credit memorandum, the
Department shall notify the State | ||||||
32 | Comptroller, who shall cause the
order to be drawn for the | ||||||
33 | amount specified and to the person named
in the notification | ||||||
34 | from the Department. The refund shall be paid by the
State | ||||||
35 | Treasurer out of the home rule municipal retailers' occupation | ||||||
36 | tax fund.
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1 | The Department shall immediately pay over to the State
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2 | Treasurer, ex officio, as trustee, all taxes and penalties | ||||||
3 | collected
hereunder. On or before the 25th day of each calendar | ||||||
4 | month, the
Department shall prepare and certify to the | ||||||
5 | Comptroller the disbursement of
stated sums of money to named | ||||||
6 | municipalities, the municipalities to be
those from which | ||||||
7 | retailers have paid taxes or penalties hereunder to the
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8 | Department during the second preceding calendar month. The | ||||||
9 | amount to be
paid to each municipality shall be the amount (not | ||||||
10 | including credit
memoranda) collected hereunder during the | ||||||
11 | second preceding calendar month
by the Department plus an | ||||||
12 | amount the Department determines is necessary to
offset any | ||||||
13 | amounts that were erroneously paid to a different
taxing body, | ||||||
14 | and not including an amount equal to the amount of refunds
made | ||||||
15 | during the second preceding calendar month by the Department on
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16 | behalf of such municipality, and not including any amount that | ||||||
17 | the Department
determines is necessary to offset any amounts | ||||||
18 | that were payable to a
different taxing body but were | ||||||
19 | erroneously paid to the municipality. Within
10 days after | ||||||
20 | receipt by the Comptroller of the disbursement certification
to | ||||||
21 | the municipalities provided for in this Section to be given to | ||||||
22 | the
Comptroller by the Department, the Comptroller shall cause | ||||||
23 | the orders to be
drawn for the respective amounts in accordance | ||||||
24 | with the directions
contained in the certification.
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25 | In addition to the disbursement required by the preceding | ||||||
26 | paragraph and
in order to mitigate delays caused by | ||||||
27 | distribution procedures, an
allocation shall, if requested, be | ||||||
28 | made within 10 days after January 14,
1991, and in November of | ||||||
29 | 1991 and each year thereafter, to each
municipality that | ||||||
30 | received more than $500,000 during the preceding fiscal
year, | ||||||
31 | (July 1 through June 30) whether collected by the municipality | ||||||
32 | or
disbursed by the Department as required by this Section. | ||||||
33 | Within 10 days
after January 14, 1991, participating | ||||||
34 | municipalities shall notify the
Department in writing of their | ||||||
35 | intent to participate. In addition, for the
initial | ||||||
36 | distribution, participating municipalities shall certify to |
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1 | the
Department the amounts collected by the municipality for | ||||||
2 | each month under
its home rule occupation and service | ||||||
3 | occupation tax during the period July
1, 1989 through June 30, | ||||||
4 | 1990. The allocation within 10 days after January
14, 1991, | ||||||
5 | shall be in an amount equal to the monthly average of these
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6 | amounts, excluding the 2 months of highest receipts. The | ||||||
7 | monthly average
for the period of July 1, 1990 through June 30, | ||||||
8 | 1991 will be determined as
follows: the amounts collected by | ||||||
9 | the municipality under its home rule
occupation and service | ||||||
10 | occupation tax during the period of July 1, 1990
through | ||||||
11 | September 30, 1990, plus amounts collected by the Department | ||||||
12 | and
paid to such municipality through June 30, 1991, excluding | ||||||
13 | the 2 months of
highest receipts. The monthly average for each | ||||||
14 | subsequent period of July 1
through June 30 shall be an amount | ||||||
15 | equal to the monthly distribution made
to each such | ||||||
16 | municipality under the preceding paragraph during this period,
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17 | excluding the 2 months of highest receipts. The distribution | ||||||
18 | made in
November 1991 and each year thereafter under this | ||||||
19 | paragraph and the
preceding paragraph shall be reduced by the | ||||||
20 | amount allocated and disbursed
under this paragraph in the | ||||||
21 | preceding period of July 1 through June 30.
The Department | ||||||
22 | shall prepare and certify to the Comptroller for
disbursement | ||||||
23 | the allocations made in accordance with this paragraph.
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24 | For the purpose of determining the local governmental unit | ||||||
25 | whose tax
is applicable, a retail sale by a producer of coal or | ||||||
26 | other mineral
mined in Illinois is a sale at retail at the | ||||||
27 | place where the coal or
other mineral mined in Illinois is | ||||||
28 | extracted from the earth. This
paragraph does not apply to coal | ||||||
29 | or other mineral when it is delivered
or shipped by the seller | ||||||
30 | to the purchaser at a point outside Illinois so
that the sale | ||||||
31 | is exempt under the United States Constitution as a sale in
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32 | interstate or foreign commerce.
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33 | Nothing in this Section shall be construed to authorize a
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34 | municipality to impose a tax upon the privilege of engaging in | ||||||
35 | any
business which under the Constitution of the United States | ||||||
36 | may not be
made the subject of taxation by this State.
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1 | An ordinance or resolution imposing or discontinuing a tax | ||||||
2 | hereunder or
effecting a change in the rate thereof shall be | ||||||
3 | adopted and a certified
copy thereof filed with the Department | ||||||
4 | on or before the first day of June,
whereupon the Department | ||||||
5 | shall proceed to administer and enforce this
Section as of the | ||||||
6 | first day of September next following the
adoption and filing. | ||||||
7 | Beginning January 1, 1992, an ordinance or resolution
imposing | ||||||
8 | or discontinuing the tax hereunder or effecting a change in the
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9 | rate thereof shall be adopted and a certified copy thereof | ||||||
10 | filed with the
Department on or before the first day of July, | ||||||
11 | whereupon the Department
shall proceed to administer and | ||||||
12 | enforce this Section as of the first day of
October next | ||||||
13 | following such adoption and filing. Beginning January 1, 1993,
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14 | an ordinance or resolution imposing or discontinuing the tax | ||||||
15 | hereunder or
effecting a change in the rate thereof shall be | ||||||
16 | adopted and a certified
copy thereof filed with the Department | ||||||
17 | on or before the first day of
October, whereupon the Department | ||||||
18 | shall proceed to administer and enforce
this Section as of the | ||||||
19 | first day of January next following the
adoption and filing.
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20 | However, a municipality located in a county with a population | ||||||
21 | in excess of
3,000,000 that elected to become a home rule unit | ||||||
22 | at the general primary
election in
1994 may adopt an ordinance | ||||||
23 | or resolution imposing the tax under this Section
and file a | ||||||
24 | certified copy of the ordinance or resolution with the | ||||||
25 | Department on
or before July 1, 1994. The Department shall then | ||||||
26 | proceed to administer and
enforce this Section as of October 1, | ||||||
27 | 1994.
Beginning April 1, 1998, an ordinance or
resolution | ||||||
28 | imposing or
discontinuing the tax hereunder or effecting a | ||||||
29 | change in the rate thereof shall
either (i) be adopted and a | ||||||
30 | certified copy thereof filed with the Department on
or
before | ||||||
31 | the first day of April, whereupon the Department shall proceed | ||||||
32 | to
administer and enforce this Section as of the first day of | ||||||
33 | July next following
the adoption and filing; or (ii) be adopted | ||||||
34 | and a certified copy thereof filed
with the Department on or | ||||||
35 | before the first day of October, whereupon the
Department shall | ||||||
36 | proceed to administer and enforce this Section as of the first
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1 | day of January next following the adoption and filing.
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2 | When certifying the amount of a monthly disbursement to a | ||||||
3 | municipality
under this Section, the Department shall increase | ||||||
4 | or decrease the amount by
an amount necessary to offset any | ||||||
5 | misallocation of previous disbursements.
The offset amount | ||||||
6 | shall be the amount erroneously disbursed
within the previous 6 | ||||||
7 | months from the time a misallocation is discovered.
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8 | Any unobligated balance remaining in the Municipal | ||||||
9 | Retailers' Occupation
Tax Fund on December 31, 1989, which fund | ||||||
10 | was abolished by Public Act
85-1135, and all receipts of | ||||||
11 | municipal tax as a result of audits of
liability periods prior | ||||||
12 | to January 1, 1990, shall be paid into the Local
Government Tax | ||||||
13 | Fund for distribution as provided by this Section prior to
the | ||||||
14 | enactment of Public Act 85-1135. All receipts of municipal tax | ||||||
15 | as a
result of an assessment not arising from an audit, for | ||||||
16 | liability periods
prior to January 1, 1990, shall be paid into | ||||||
17 | the Local Government Tax Fund
for distribution before July 1, | ||||||
18 | 1990, as provided by this Section prior to
the enactment of | ||||||
19 | Public Act 85-1135; and on and after July 1,
1990, all such | ||||||
20 | receipts shall be distributed as provided in Section
6z-18 of | ||||||
21 | the State Finance Act.
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22 | As used in this Section, "municipal" and "municipality" | ||||||
23 | means a city,
village or incorporated town, including an | ||||||
24 | incorporated town that has
superseded a civil township.
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25 | This Section shall be known and may be cited as the Home | ||||||
26 | Rule Municipal
Retailers' Occupation Tax Act.
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27 | (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
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