101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB1497

 

Introduced , by Rep. Sam Yingling

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-11-1  from Ch. 24, par. 8-11-1

    Amends the Home Rule Municipal Retailers' Occupation Tax Act in the Illinois Municipal Code. Makes a technical change in a Section authorizing the imposition of the tax.


LRB101 07999 AWJ 53056 b

 

 

A BILL FOR

 

HB1497LRB101 07999 AWJ 53056 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Section 8-11-1 as follows:
 
6    (65 ILCS 5/8-11-1)  (from Ch. 24, par. 8-11-1)
7    Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
8Act. The The corporate authorities of a home rule municipality
9may impose a tax upon all persons engaged in the business of
10selling tangible personal property, other than an item of
11tangible personal property titled or registered with an agency
12of this State's government, at retail in the municipality on
13the gross receipts from these sales made in the course of such
14business. If imposed, the tax shall only be imposed in 1/4%
15increments. On and after September 1, 1991, this additional tax
16may not be imposed on tangible personal property taxed at the
171% rate under the Retailers' Occupation Tax Act. The tax
18imposed by a home rule municipality under this Section and all
19civil penalties that may be assessed as an incident of the tax
20shall be collected and enforced by the State Department of
21Revenue. The certificate of registration that is issued by the
22Department to a retailer under the Retailers' Occupation Tax
23Act shall permit the retailer to engage in a business that is

 

 

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1taxable under any ordinance or resolution enacted pursuant to
2this Section without registering separately with the
3Department under such ordinance or resolution or under this
4Section. The Department shall have full power to administer and
5enforce this Section; to collect all taxes and penalties due
6hereunder; to dispose of taxes and penalties so collected in
7the manner hereinafter provided; and to determine all rights to
8credit memoranda arising on account of the erroneous payment of
9tax or penalty hereunder. In the administration of, and
10compliance with, this Section the Department and persons who
11are subject to this Section shall have the same rights,
12remedies, privileges, immunities, powers and duties, and be
13subject to the same conditions, restrictions, limitations,
14penalties and definitions of terms, and employ the same modes
15of procedure, as are prescribed in Sections 1, 1a, 1d, 1e, 1f,
161i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
17provisions therein other than the State rate of tax), 2c, 3
18(except as to the disposition of taxes and penalties
19collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
205l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
21Retailers' Occupation Tax Act and Section 3-7 of the Uniform
22Penalty and Interest Act, as fully as if those provisions were
23set forth herein.
24    No tax may be imposed by a home rule municipality under
25this Section unless the municipality also imposes a tax at the
26same rate under Section 8-11-5 of this Act.

 

 

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1    Persons subject to any tax imposed under the authority
2granted in this Section may reimburse themselves for their
3seller's tax liability hereunder by separately stating that tax
4as an additional charge, which charge may be stated in
5combination, in a single amount, with State tax which sellers
6are required to collect under the Use Tax Act, pursuant to such
7bracket schedules as the Department may prescribe.
8    Whenever the Department determines that a refund should be
9made under this Section to a claimant instead of issuing a
10credit memorandum, the Department shall notify the State
11Comptroller, who shall cause the order to be drawn for the
12amount specified and to the person named in the notification
13from the Department. The refund shall be paid by the State
14Treasurer out of the home rule municipal retailers' occupation
15tax fund.
16    The Department shall immediately pay over to the State
17Treasurer, ex officio, as trustee, all taxes and penalties
18collected hereunder.
19    As soon as possible after the first day of each month,
20beginning January 1, 2011, upon certification of the Department
21of Revenue, the Comptroller shall order transferred, and the
22Treasurer shall transfer, to the STAR Bonds Revenue Fund the
23local sales tax increment, as defined in the Innovation
24Development and Economy Act, collected under this Section
25during the second preceding calendar month for sales within a
26STAR bond district.

 

 

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1    After the monthly transfer to the STAR Bonds Revenue Fund,
2on or before the 25th day of each calendar month, the
3Department shall prepare and certify to the Comptroller the
4disbursement of stated sums of money to named municipalities,
5the municipalities to be those from which retailers have paid
6taxes or penalties hereunder to the Department during the
7second preceding calendar month. The amount to be paid to each
8municipality shall be the amount (not including credit
9memoranda) collected hereunder during the second preceding
10calendar month by the Department plus an amount the Department
11determines is necessary to offset any amounts that were
12erroneously paid to a different taxing body, and not including
13an amount equal to the amount of refunds made during the second
14preceding calendar month by the Department on behalf of such
15municipality, and not including any amount that the Department
16determines is necessary to offset any amounts that were payable
17to a different taxing body but were erroneously paid to the
18municipality, and not including any amounts that are
19transferred to the STAR Bonds Revenue Fund, less 1.5% of the
20remainder, which the Department shall transfer into the Tax
21Compliance and Administration Fund. The Department, at the time
22of each monthly disbursement to the municipalities, shall
23prepare and certify to the State Comptroller the amount to be
24transferred into the Tax Compliance and Administration Fund
25under this Section. Within 10 days after receipt by the
26Comptroller of the disbursement certification to the

 

 

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1municipalities and the Tax Compliance and Administration Fund
2provided for in this Section to be given to the Comptroller by
3the Department, the Comptroller shall cause the orders to be
4drawn for the respective amounts in accordance with the
5directions contained in the certification.
6    In addition to the disbursement required by the preceding
7paragraph and in order to mitigate delays caused by
8distribution procedures, an allocation shall, if requested, be
9made within 10 days after January 14, 1991, and in November of
101991 and each year thereafter, to each municipality that
11received more than $500,000 during the preceding fiscal year,
12(July 1 through June 30) whether collected by the municipality
13or disbursed by the Department as required by this Section.
14Within 10 days after January 14, 1991, participating
15municipalities shall notify the Department in writing of their
16intent to participate. In addition, for the initial
17distribution, participating municipalities shall certify to
18the Department the amounts collected by the municipality for
19each month under its home rule occupation and service
20occupation tax during the period July 1, 1989 through June 30,
211990. The allocation within 10 days after January 14, 1991,
22shall be in an amount equal to the monthly average of these
23amounts, excluding the 2 months of highest receipts. The
24monthly average for the period of July 1, 1990 through June 30,
251991 will be determined as follows: the amounts collected by
26the municipality under its home rule occupation and service

 

 

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1occupation tax during the period of July 1, 1990 through
2September 30, 1990, plus amounts collected by the Department
3and paid to such municipality through June 30, 1991, excluding
4the 2 months of highest receipts. The monthly average for each
5subsequent period of July 1 through June 30 shall be an amount
6equal to the monthly distribution made to each such
7municipality under the preceding paragraph during this period,
8excluding the 2 months of highest receipts. The distribution
9made in November 1991 and each year thereafter under this
10paragraph and the preceding paragraph shall be reduced by the
11amount allocated and disbursed under this paragraph in the
12preceding period of July 1 through June 30. The Department
13shall prepare and certify to the Comptroller for disbursement
14the allocations made in accordance with this paragraph.
15    For the purpose of determining the local governmental unit
16whose tax is applicable, a retail sale by a producer of coal or
17other mineral mined in Illinois is a sale at retail at the
18place where the coal or other mineral mined in Illinois is
19extracted from the earth. This paragraph does not apply to coal
20or other mineral when it is delivered or shipped by the seller
21to the purchaser at a point outside Illinois so that the sale
22is exempt under the United States Constitution as a sale in
23interstate or foreign commerce.
24    Nothing in this Section shall be construed to authorize a
25municipality to impose a tax upon the privilege of engaging in
26any business which under the Constitution of the United States

 

 

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1may not be made the subject of taxation by this State.
2    An ordinance or resolution imposing or discontinuing a tax
3hereunder or effecting a change in the rate thereof shall be
4adopted and a certified copy thereof filed with the Department
5on or before the first day of June, whereupon the Department
6shall proceed to administer and enforce this Section as of the
7first day of September next following the adoption and filing.
8Beginning January 1, 1992, an ordinance or resolution imposing
9or discontinuing the tax hereunder or effecting a change in the
10rate thereof shall be adopted and a certified copy thereof
11filed with the Department on or before the first day of July,
12whereupon the Department shall proceed to administer and
13enforce this Section as of the first day of October next
14following such adoption and filing. Beginning January 1, 1993,
15an ordinance or resolution imposing or discontinuing the tax
16hereunder or effecting a change in the rate thereof shall be
17adopted and a certified copy thereof filed with the Department
18on or before the first day of October, whereupon the Department
19shall proceed to administer and enforce this Section as of the
20first day of January next following the adoption and filing.
21However, a municipality located in a county with a population
22in excess of 3,000,000 that elected to become a home rule unit
23at the general primary election in 1994 may adopt an ordinance
24or resolution imposing the tax under this Section and file a
25certified copy of the ordinance or resolution with the
26Department on or before July 1, 1994. The Department shall then

 

 

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1proceed to administer and enforce this Section as of October 1,
21994. Beginning April 1, 1998, an ordinance or resolution
3imposing or discontinuing the tax hereunder or effecting a
4change in the rate thereof shall either (i) be adopted and a
5certified copy thereof filed with the Department on or before
6the first day of April, whereupon the Department shall proceed
7to administer and enforce this Section as of the first day of
8July next following the adoption and filing; or (ii) be adopted
9and a certified copy thereof filed with the Department on or
10before the first day of October, whereupon the Department shall
11proceed to administer and enforce this Section as of the first
12day of January next following the adoption and filing.
13    When certifying the amount of a monthly disbursement to a
14municipality under this Section, the Department shall increase
15or decrease the amount by an amount necessary to offset any
16misallocation of previous disbursements. The offset amount
17shall be the amount erroneously disbursed within the previous 6
18months from the time a misallocation is discovered.
19    Any unobligated balance remaining in the Municipal
20Retailers' Occupation Tax Fund on December 31, 1989, which fund
21was abolished by Public Act 85-1135, and all receipts of
22municipal tax as a result of audits of liability periods prior
23to January 1, 1990, shall be paid into the Local Government Tax
24Fund for distribution as provided by this Section prior to the
25enactment of Public Act 85-1135. All receipts of municipal tax
26as a result of an assessment not arising from an audit, for

 

 

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1liability periods prior to January 1, 1990, shall be paid into
2the Local Government Tax Fund for distribution before July 1,
31990, as provided by this Section prior to the enactment of
4Public Act 85-1135; and on and after July 1, 1990, all such
5receipts shall be distributed as provided in Section 6z-18 of
6the State Finance Act.
7    As used in this Section, "municipal" and "municipality"
8means a city, village or incorporated town, including an
9incorporated town that has superseded a civil township.
10    This Section shall be known and may be cited as the Home
11Rule Municipal Retailers' Occupation Tax Act.
12(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17;
13100-587, eff. 6-4-18; 100-1171, eff. 1-4-19; revised 1-9-19.)