HB3859ham004 97TH GENERAL ASSEMBLY

Rep. Lisa M. Dugan

Filed: 3/26/2012

09700HB3859ham004 LRB097 13904 KMW 68024 a

AMENDMENT TO HOUSE BILL 3859

AMENDMENT NO. ______. Amend House Bill 3859 by replacing everything after the enacting clause with the following:

"Section 5. The Counties Code is amended by changing Section 5-1014.3 as follows:

(55 ILCS 5/5-1014.3)

Sec. 5-1014.3. Agreements to share or rebate occupation taxes.

(a) On and after June 1, 2004, a county board 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 county. 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 subsection (a) of 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) On and after July 1, 2012, a county board shall not enter into any tax revenue sharing agreement, as defined in subsection (d) of this Section, 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 a tax revenue sharing agreement that violates this Section may file an action in circuit court against only the county. Any tax revenue sharing agreement entered into prior to July 1, 2012 is not affected by this amendatory Act of the 97th 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 tax revenue sharing agreement, statutory interest, costs, reasonable attorney's fees, and an amount equal to 50% of the tax. Any county that enters into a tax revenue sharing agreement must complete and submit a report by electronic filing to the Department of Revenue within 7 days after the execution of an agreement. Any county that has entered into a tax revenue sharing agreement before the effective date of this amendatory Act of the 97th General Assembly that has not been terminated or expired as of the effective date of this amendatory Act of the 97th General Assembly, shall submit a report with respect to the agreements within 90 days after the effective date of this amendatory Act of the 97th General Assembly.

(d) "Tax revenue sharing agreement" means, without 7 days after the execution of any amendment made to a tax limitation:

(1) any agreement between the county and any person, business, or agent that provides for the sharing, refunding, or rebating of any portion of any retailers' occupation tax collected by the State;

(2) any agreement between the county and an intermediary or between an intermediary and a taxpayer for the purpose of sharing, refunding, or rebating to any taxpayer any portion of any retailers' occupation tax collected by the State; or

(3) any amendment to a tax revenue sharing agreement, including, but not limited to, a change in the terms of the agreement or a change or addition of a taxpayer.

(e) The report described in this Section shall be made on a form to be supplied by the Department of Revenue and shall contain the following:

(1) the names of the county and the business entering into the agreement;

(2) the location or locations of the business within the county;

(3) the form shall also contain a statement, to be answered in the affirmative or negative, as to whether or not the company maintains additional places of business in the State other than those described pursuant to paragraph (2);

(4) the terms of the agreement, including (i) the manner in which the amount of any retailers' occupation tax is to be shared, rebated, or refunded is to be determined each year for the duration of the tax revenue sharing agreement, (ii) the duration of the tax revenue sharing agreement, and (iii) the name of any business who is not a party to the agreement but who directly or indirectly receives a share, refund, or rebate of the retailers' occupation tax; and

(5) a copy of the tax revenue sharing agreement.

An updated report must be filed by the county within 7 days after the execution of any amendment made to a tax revenue sharing agreement.

Reports filed with the Department pursuant to this Section shall not constitute tax returns. But to the extent the Department is allowed or required by law to release any report or information provided to it by this Section, prior to any such release the Department shall remove any sales or other financial data provided that is identified with a specific retailer or seller.

(f) On and after July 1, 2012 a home rule unit shall not enter into any tax revenue sharing agreement prohibited by Subsection (c) of 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.

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

Section 10. The Illinois Municipal Code is amended by changing Section 8-11-21 as follows:

(65 ILCS 5/8-11-21)

Sec. 8-11-21. Tax revenue sharing agreements 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) On and after July 1, 2012, the corporate authorities of a municipality shall not enter into any tax revenue sharing agreement, as defined in subsection (d) of this Section, 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 a tax revenue sharing agreement that violates this Section may file an action in circuit court against only the municipality. Any tax revenue sharing agreement entered into prior to July 1, 2012 is not affected by this amendatory Act of the 97th 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 tax revenue sharing agreement, statutory interest, costs, reasonable attorney's fees, and an amount equal to 50% of the tax.

Any municipality that enters into a tax revenue sharing agreement must complete and submit a report by electronic filing to the Department of Revenue within 7 days after the execution of an agreement. Any municipality that has entered into a tax revenue sharing agreement before the effective date of this amendatory Act of the 97th General Assembly that has not been terminated or expired as of the effective date of this amendatory Act of the 97th General Assembly, shall submit a report with respect to the agreements within 90 days after the effective date of this amendatory Act of the 97th General Assembly.

(d) "Tax revenue sharing agreement" means, without limitation:

(1) any agreement between the municipality and any person, business, or agent that provides for the sharing, refunding, or rebating of any portion of any retailers' occupation tax collected by the State;

(2) any agreement between the municipality and an intermediary or between an intermediary and a taxpayer for the purpose of sharing, refunding, or rebating to any taxpayer any portion of any retailers' occupation tax collected by the State; or

(3) any amendment to a tax revenue sharing agreement, including, but not limited to, a change in the terms of the agreement or a change or addition of a taxpayer.

(e) The report described in this Section shall be made on a form to be supplied by the Department of Revenue and shall contain the following:

(1) the names of the municipality and the business entering into the agreement;

(2) the location or locations of the business within the municipality;

(3) the form shall also contain a statement, to be answered in the affirmative or negative, as to whether or not the company maintains additional places of business in the State other than those described pursuant to paragraph (2);

(4) the terms of the agreement, including (i) the manner in which the amount of any retailers' occupation tax is to be shared, rebated, or refunded is to be determined each year for the duration of the tax revenue sharing agreement, (ii) the duration of the tax revenue sharing agreement, and (iii) the name of any business who is not a party to the agreement but who directly or indirectly receives a share, refund, or rebate of the retailers' occupation tax; and

(5) a copy of the tax revenue sharing agreement.

An updated report must be filed by the municipality within revenue sharing agreement.

Reports filed with the Department pursuant to this Section shall not constitute tax returns. But to the extent the Department is allowed or required by law to release any report or information provided to it by this Section, prior to any such release the Department shall remove any sales or other financial data provided that is identified with a specific retailer or seller.

(f) On and after July 1, 2012 a home rule unit shall not enter into any tax revenue sharing agreement prohibited by Subsection (c) of 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.

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

Section 15. The State Mandates Act is amended by adding Section 8.36 as follows:

(30 ILCS 805/8.36 new)

Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 97th General Assembly.".