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| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 SB1405 Introduced 2/6/2013, by Sen. Iris Y. Martinez SYNOPSIS AS INTRODUCED: |
| 35 ILCS 720/1 | from Ch. 120, par. 1901 |
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Amends the Local Tax Collection Act. Provides that the amount to be paid to each municipality or county under the Act shall not include credit memoranda and shall not include the following amounts: (i) an amount equal to the amount of refunds made during the second preceding calendar month by the Department of behalf of such county or municipality; (ii) an amount the Department determines is necessary to offset any amounts which were erroneously paid to a different taxing body; and (iii) any amount which the Department determines is necessary to offset any amounts which are payable to a different taxing body but were erroneously paid to the municipality or county. Provides that the Comptroller shall issue orders for payment within 10 (instead of 7) days after receiving the Department's certification. Provides that 2% of the amounts paid to each municipality or county (or a greater amount as specified in an agreement between the Department and the municipality or county) shall be deposited into the Tax Compliance and Administration Fund to cover the costs incurred by the Department in administering and enforcing the Act (now, 2% is deposited into the General Revenue Fund). Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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1 | | AN ACT concerning revenue.
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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 Local Tax Collection Act is amended by |
5 | | changing Section 1 as follows:
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6 | | (35 ILCS 720/1) (from Ch. 120, par. 1901)
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7 | | Sec. 1.
(a) The Department of Revenue and any county or |
8 | | municipality
may agree to the Department's collecting, and |
9 | | transmitting back to such county
or municipality, any tax |
10 | | lawfully imposed by that county or municipality,
the subject of |
11 | | which is similar to that of a tax imposed by the State and
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12 | | collected by the Department of Revenue, unless the General |
13 | | Assembly has
specifically required a different method of |
14 | | collection for such tax.
However, the Department may not enter |
15 | | into a contract with any municipality
or county pursuant to |
16 | | this Act for the collection of any tax based on the
sale or use |
17 | | of tangible personal property generally, not including taxes
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18 | | based only on the sale or use of specifically limited kinds of |
19 | | tangible
personal property, unless the
municipal or county |
20 | | ordinance imposes a sales or use tax which is
substantively |
21 | | identical to and which contains the same exemptions as the
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22 | | taxes imposed by the municipalities' or counties' ordinances |
23 | | authorized by
the Municipal or County Retailers' Occupation Tax |
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1 | | Act or the Municipal or
County Use Tax as interpreted by the |
2 | | Department through its regulations as
those Acts and as those |
3 | | regulations may from time to time be amended.
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4 | | (b) Regarding the collection of a tax pursuant to this |
5 | | Section, the
Department and any person subject to a tax |
6 | | collected by the Department
pursuant to this Section shall, as |
7 | | much as practicable, have the same
rights, remedies, |
8 | | privileges, immunities, powers and duties, and be subject
to |
9 | | the same conditions, restrictions, limitations,
penalties, |
10 | | definitions of terms and procedures, as those set forth in the
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11 | | Act imposing the State tax, the subject of which is similar to |
12 | | the tax being
collected by the Department pursuant to this |
13 | | Section. The Department and
county or municipality shall |
14 | | specifically agree in writing to such rights,
remedies, |
15 | | privileges, immunities, powers, duties, conditions, |
16 | | restrictions,
limitations, penalties, definitions of terms and |
17 | | procedures, as well as any
other terms deemed necessary or |
18 | | advisable. All terms so agreed upon shall
be incorporated into |
19 | | an ordinance of such county or municipality,
and the Department |
20 | | shall not collect the tax pursuant to this Section until
such |
21 | | ordinance takes effect.
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22 | | (c) (1) The Department shall forthwith pay over to the |
23 | | State Treasurer, ex
officio, as trustee, all taxes and |
24 | | penalties collected hereunder. On or
before the 25th day of |
25 | | each calendar month, the Department shall prepare
and certify |
26 | | to the Comptroller the disbursement of stated sums of money to
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1 | | named cities and counties from which retailers or other |
2 | | taxpayers have paid taxes or penalties
hereunder to the |
3 | | Department during the second preceding calendar month.
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4 | | (i) The an amount to be paid to each county and |
5 | | municipality , which shall equal
the taxes and penalties |
6 | | collected by the Department for such county or
municipality |
7 | | pursuant to this Section during the second preceding calendar |
8 | | month , not including credit memoranda, and not including the |
9 | | following amounts: (i) an amount equal to the amount of refunds |
10 | | made during the second preceding calendar month by the |
11 | | Department of behalf of such county or municipality; (ii) an |
12 | | amount the Department determines is necessary to offset any |
13 | | amounts which were erroneously paid to a different taxing body; |
14 | | and (iii) any amount which the Department determines is |
15 | | necessary to offset any amounts which are payable to a |
16 | | different taxing body but were erroneously paid to the |
17 | | municipality or county ,
less 2% of the balance, or any greater |
18 | | amount of the balance as determined in the agreement between |
19 | | the Department and the county or municipality required under |
20 | | this Section, which sum shall be retained by the State |
21 | | Treasurer to cover the costs incurred by the Department in |
22 | | administering and enforcing the provisions of this Section, as |
23 | | provided herein total amount of taxes and penalties collected |
24 | | by the Department
for such county or municipality pursuant to |
25 | | this Section or the actual cost
of collection of such taxes and |
26 | | penalties determined pursuant to the
agreement described in |
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1 | | subsection (b), whichever is less, which shall be
retained by |
2 | | the State ; and
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3 | | (ii) With respect to the total amount to be retained by the |
4 | | State Treasurer pursuant to
subparagraph (i), the Department, |
5 | | at the time of each monthly disbursement to the counties and |
6 | | municipalities, shall prepare and certify to the Comptroller |
7 | | the amount so retained by the State Treasurer, which shall be |
8 | | deposited such amount to be deposited into the Tax Compliance |
9 | | and Administration Fund General Revenue Fund
of the State |
10 | | treasury and used by the Department, subject to appropriation, |
11 | | to cover the costs incurred by the
Department in collecting |
12 | | such taxes and penalties.
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13 | | (2) Within 10 7 days after receiving the certifications |
14 | | described in paragraph
(1), the Comptroller shall issue orders |
15 | | for payment of the amounts specified
in subparagraph (i) of |
16 | | paragraph (1).
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17 | | (d) Any home rule unit of local government which imposes a |
18 | | tax
substantially similar to a State imposed tax, or which |
19 | | imposes a tax which
is intended to be collected from a retail |
20 | | purchaser of goods or services at
the same time a similar State |
21 | | tax is also collected, must file a copy of
the ordinance |
22 | | imposing the tax with the Department within 10 days after
its |
23 | | passage. No such ordinance shall become effective until it is |
24 | | so
filed. Any home rule unit of local government which has |
25 | | enacted such an
ordinance prior to the effective date of this |
26 | | Act shall file a copy of such
ordinance with the Department |
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1 | | within 90 days after the effective date of this Act.
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2 | | (e) It is declared to be the law of this State, pursuant to |
3 | | paragraph
(g) of Section 6 of Article VII of the Illinois |
4 | | Constitution, that this
amendatory Act of 1988 is a denial of |
5 | | the power of a home rule unit to fail
to comply with the |
6 | | requirements of paragraphs (d) and (e) of this Section.
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7 | | (Source: P.A. 85-1215.)
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8 | | Section 99. Effective date. This Act takes effect upon |
9 | | becoming law.
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