102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3458

 

Introduced 1/18/2022, by Sen. Doris Turner

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-11-23

    Amends the Municipal Cannabis Retailers' Occupation Tax Law in the Illinois Municipal Code. Provides that an elected official of a municipality that receives revenues pursuant to the Law may request from the Department of Revenue the total amount of deposits received by the municipality each calendar year, notwithstanding any other provision of law. Effective immediately.


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A BILL FOR

 

SB3458LRB102 23596 AWJ 32778 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 8-11-23 as follows:
 
6    (65 ILCS 5/8-11-23)
7    Sec. 8-11-23. Municipal Cannabis Retailers' Occupation Tax
8Law.
9    (a) This Section may be referred to as the Municipal
10Cannabis Retailers' Occupation Tax Law. The corporate
11authorities of any municipality may, by ordinance, impose a
12tax upon all persons engaged in the business of selling
13cannabis, other than cannabis purchased under the
14Compassionate Use of Medical Cannabis Program Act, at retail
15in the municipality on the gross receipts from these sales
16made in the course of that business. If imposed, the tax may
17not exceed 3% of the gross receipts from these sales and shall
18only be imposed in 1/4% increments. The tax imposed under this
19Section and all civil penalties that may be assessed as an
20incident of the tax shall be collected and enforced by the
21Department of Revenue. The Department of Revenue shall have
22full power to administer and enforce this Section; to collect
23all taxes and penalties due hereunder; to dispose of taxes and

 

 

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1penalties so collected in the manner hereinafter provided; and
2to determine all rights to credit memoranda arising on account
3of the erroneous payment of tax or penalty under this Section.
4In the administration of and compliance with this Section, the
5Department and persons who are subject to this Section shall
6have the same rights, remedies, privileges, immunities, powers
7and duties, and be subject to the same conditions,
8restrictions, limitations, penalties and definitions of terms,
9and employ the same modes of procedure, as are prescribed in
10Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65
11(in respect to all provisions therein other than the State
12rate of tax), 2a, 2b, 2c, 2i, 3 (except as to the disposition
13of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e,
145f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11,
1511a, 12, and 13 of the Retailers' Occupation Tax Act and
16Section 3-7 of the Uniform Penalty and Interest Act, as fully
17as if those provisions were set forth herein.
18    (b) Persons subject to any tax imposed under the authority
19granted in this Section may reimburse themselves for their
20seller's tax liability hereunder by separately stating that
21tax as an additional charge, which charge may be stated in
22combination, in a single amount, with any State tax that
23sellers are required to collect.
24    (c) Whenever the Department of Revenue determines that a
25refund should be made under this Section to a claimant instead
26of issuing a credit memorandum, the Department of Revenue

 

 

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1shall notify the State Comptroller, who shall cause the order
2to be drawn for the amount specified and to the person named in
3the notification from the Department of Revenue.
4    (d) The Department of Revenue shall immediately pay over
5to the State Treasurer, ex officio, as trustee, all taxes and
6penalties collected hereunder for deposit into the Local
7Cannabis Retailers' Occupation Tax Trust Fund.
8    (e) On or before the 25th day of each calendar month, the
9Department of Revenue shall prepare and certify to the
10Comptroller the amount of money to be disbursed from the Local
11Cannabis Retailers' Occupation Tax Trust Fund to
12municipalities from which retailers have paid taxes or
13penalties under this Section during the second preceding
14calendar month. The amount to be paid to each municipality
15shall be the amount (not including credit memoranda) collected
16under this Section from sales made in the municipality during
17the second preceding calendar month, plus an amount the
18Department of Revenue determines is necessary to offset any
19amounts that were erroneously paid to a different taxing body,
20and not including an amount equal to the amount of refunds made
21during the second preceding calendar month by the Department
22on behalf of such municipality, and not including any amount
23that the Department determines is necessary to offset any
24amounts that were payable to a different taxing body but were
25erroneously paid to the municipality, less 1.5% of the
26remainder, which the Department shall transfer into the Tax

 

 

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1Compliance and Administration Fund. The Department, at the
2time of each monthly disbursement to the municipalities, shall
3prepare and certify to the State Comptroller the amount to be
4transferred into the Tax Compliance and Administration Fund
5under this Section. Within 10 days after receipt by the
6Comptroller of the disbursement certification to the
7municipalities and the Tax Compliance and Administration Fund
8provided for in this Section to be given to the Comptroller by
9the Department, the Comptroller shall cause the orders to be
10drawn for the respective amounts in accordance with the
11directions contained in the certification.
12    (f) An ordinance or resolution imposing or discontinuing a
13tax under this Section or effecting a change in the rate
14thereof that is adopted on or after June 25, 2019 (the
15effective date of Public Act 101-27) and for which a certified
16copy is filed with the Department on or before April 1, 2020
17shall be administered and enforced by the Department beginning
18on July 1, 2020. For ordinances filed with the Department
19after April 1, 2020, an ordinance or resolution imposing or
20discontinuing a tax under this Section or effecting a change
21in the rate thereof shall either (i) be adopted and a certified
22copy thereof filed with the Department on or before the first
23day of April, whereupon the Department shall proceed to
24administer and enforce this Section as of the first day of July
25next following the adoption and filing; or (ii) be adopted and
26a certified copy thereof filed with the Department on or

 

 

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1before the first day of October, whereupon the Department
2shall proceed to administer and enforce this Section as of the
3first day of January next following the adoption and filing.
4    (g) An elected official of a municipality that receives
5revenues pursuant to this Law may request from the Department
6of Revenue the total amount of deposits received by the
7municipality each calendar year, notwithstanding any other
8provision of law.
9(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.