SB1429sam004 95TH GENERAL ASSEMBLY

Sen. John J. Cullerton

Filed: 3/23/2007

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AMENDMENT TO SENATE BILL 1429

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

on page 333, immediately below line 26, by inserting the following:

"Subject to payment of amounts into the Build Illinois Fund, the McCormick Place Expansion Project Fund, and the Energy Infrastructure Fund, pursuant to the preceding paragraphs or in any amendments thereto hereafter enacted, beginning on February 1, 2008 the Department shall each month pay into the Municipality and Local Government Reimbursement Fund from the net revenue realized for the preceding month 1/12 of $11,400,000, which amount is attributable to the change in the definition of "soft drinks" made by the amendatory Act of 95th General Assembly."; and

on page 383, line 15, after "8-11-6b,", by inserting "8-11-21,"; and

on page 445, immediately below line 1, by inserting the following:

"(65 ILCS 5/8-11-21)

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

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

(b) On and after the effective date of this amendatory Act of the 93rd General Assembly, a home rule unit shall not enter into any agreement prohibited by this Section. This Section is a denial and limitation of home rule powers and functions under subsection (g) of Section 6 of Article VII of the Illinois Constitution.

(c) Moneys in the Municipality and Local Government Reimbursement Fund may be used only by the Department of Revenue to reimburse municipalities that have entered into agreements to share or rebate a portion of the retailers' occupation tax for the revenue that the municipalities would have received from those agreements but have lost because of the changes made in the sourcing of sales under subsection (c) of Section 2 of the Retailers' Occupation Tax Act, which were made in order for Illinois use and occupation tax laws to comply with the Streamlined Sales and Use Tax Agreement. The moneys from the Fund shall be available to those municipalities to replace the lost revenue and to fulfill agreements made to share or rebate a portion of the retailers' occupation tax. Municipalities with incentive agreements shall receive reimbursement by application to the Department of Revenue in the form and manner that the Department requires by rule.

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