Sen. John J. Cullerton
Filed: 3/23/2007
 
 

 




 

 		












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AMENDMENT TO SENATE BILL 1429 




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    AMENDMENT NO. ______. Amend Senate Bill 1429 as follows:

 
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on page 3, by replacing line 11 with the following:
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"Sections 6z-18 and 6z-20 and by adding Section 5.675 as 
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follows:
 
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    (30 ILCS 105/5.675 new)
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    Sec. 5.675. The Municipality and Local Government 
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Reimbursement Fund."; and
 
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on page 383, line 15, after "8-11-6b,", by inserting 
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"8-11-21,"; and
 
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on page 445, immediately below line 1, by inserting the 
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following:
 



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    "(65 ILCS 5/8-11-21)




 


 






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    Sec. 8-11-21. Agreements to share or rebate occupation 
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taxes.

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    (a) On and after
June 1, 2004, the corporate authorities of 
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a municipality shall
not enter into any agreement to share or 
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rebate
any
portion of retailers' occupation taxes generated by 
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retail sales of tangible
personal
property if: (1) the tax on 
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those retail sales, absent the agreement,
would have been paid 
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to another unit of local government; and (2) the
retailer 
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maintains, within that other unit of local government, a
retail 
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location from which the tangible personal property is delivered 
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to
purchasers, or a warehouse from which the tangible personal 
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property is
delivered to purchasers. Any unit of local 
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government
denied retailers' occupation tax revenue because of 
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an agreement that violates
this Section may file an action in 
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circuit court against only the municipality.
Any agreement 
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entered into prior to
June 1,
2004 is not affected by this 
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amendatory Act of the 93rd General Assembly.
Any unit of
local 
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government that prevails in the circuit court action is 
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entitled to
damages in
the amount of the tax revenue it was 
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denied as a result of the agreement,
statutory interest, costs, 
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reasonable attorney's fees, and an amount equal to
50% of the

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tax.

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    (b) On and after the effective date of this amendatory Act 
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of the 93rd
General Assembly, a home rule unit shall not enter 
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into any agreement
prohibited
by this Section. This Section is 
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a denial and limitation of home rule powers
and
functions under 
 


 






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subsection (g) of Section 6 of Article VII of the Illinois

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Constitution.

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    (c) Beginning on July 1, 2008, the Department of Revenue 
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must deposit any revenues that are attributable  to the  change 
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of the definition of "soft drinks" made by this amendatory Act 
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of the 95th General Assembly in the Use Tax Act, the Service 
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Use Tax Act, the Service Occupation Tax Act, and the Retailers'  
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Occupation Tax Act into the Municipality and Local Government 
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Reimbursement Fund, which is created as a special fund in the 
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State treasury. Moneys in the Fund may be used only by the 
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Department of Revenue to reimburse municipalities that have 
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entered into agreements to share or rebate a portion of the 
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retailers' occupation tax for the revenue that the 
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municipalities would have received from those agreements but 
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have lost because of the changes made in Illinois local tax 
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sourcing, which were made in order for Illinois use and 
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occupation tax laws to comply with the Streamlined Sales and 
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Use Tax Agreement. The moneys from the Fund shall be available 
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to those municipalities to replace the lost revenue and to 
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fulfill agreements made to share or rebate a portion of the 
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retailers' occupation tax. Municipalities with incentive 
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agreements shall receive reimbursement by application to the 
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Department of Revenue in the form and manner that the 
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Department requires by rule.

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(Source: P.A. 93-920, eff. 8-12-04.)".