103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2906

 

Introduced 1/26/2024, by Sen. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
55 ILCS 5/5-1008  from Ch. 34, par. 5-1008

    Amends the Home Rule County Use Tax Law of the Counties Code. Provides that, if a home rule county imposes a home rule county use tax, then the tax shall be collected by the Department of Revenue when the property is purchased at retail from a retailer in any county in this State other than the home rule county imposing the tax. Includes provisions relating to collection and administration of the tax. Provides that the Department shall not begin collection and enforcement before January 1, 2025. Effective immediately.


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A BILL FOR

 

SB2906LRB103 37797 AWJ 67926 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 Counties Code is amended by changing
5Section 5-1008 as follows:
 
6    (55 ILCS 5/5-1008)  (from Ch. 34, par. 5-1008)
7    Sec. 5-1008. Home Rule County Use Tax.
8    (a) As used in this Section, "Department" means the
9Department of Revenue.
10    (b) The corporate authorities of a home rule county may
11impose a tax upon the privilege of using, in such county, any
12item of tangible personal property which is purchased at
13retail from a retailer, and which is titled or registered to a
14purchaser residing within the corporate limits of such home
15rule county with an agency of this State's government, at a
16rate which is an increment of 1/4% and based on the selling
17price of such tangible personal property, as "selling price"
18is defined in the "Use Tax Act", approved July 14, 1955, as
19amended. Such tax shall be collected from persons whose
20Illinois address for titling or registration purposes is given
21as being in such county. Except as provided in subsection (c),
22such Such tax shall be collected by the county imposing such
23tax.

 

 

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1    (c) If a home rule county imposes the tax authorized by
2subsection (b), then the tax shall be collected by the
3Department when the property is purchased at retail from a
4retailer in any county in this State other than the home rule
5county imposing the tax. The tax shall be remitted to the State
6or an exemption determination must be obtained from the
7Department before the title or certificate of registration for
8the property may be issued. The tax or proof of exemption may
9be transmitted to the Department by way of the State agency
10with which, or State officer with whom, the tangible personal
11property must be titled or registered if the Department and
12that agency or State officer determine that this procedure
13will expedite the processing of applications for title or
14registration.
15    The Department shall have full power to administer and
16enforce this subsection, to collect all taxes, penalties, and
17interest due under this subsection, to dispose of taxes,
18penalties, and interest so collected in the manner provided in
19this subsection, and to determine all rights to credit
20memoranda or refunds arising on account of the erroneous
21payment of tax, penalty, or interest under this subsection. In
22the administration of and compliance with this subsection, the
23Department and persons who are subject to this subsection
24shall have the same rights, remedies, privileges, immunities,
25powers, and duties, and be subject to the same conditions,
26restrictions, limitations, penalties, and definitions of

 

 

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1terms, and employ the same modes of procedure as are
2prescribed in the Use Tax Act (except the definition of
3"retailer maintaining a place of business in this State" and
4provisions pertaining to the State rate of tax) and the
5Uniform Penalty and Interest Act that are not inconsistent
6with this subsection, as fully as if the Use Tax Act and the
7Uniform Penalty and Interest Act were set forth in this
8subsection.
9    Whenever the Department determines that a refund shall be
10made under this subsection to a claimant instead of issuing a
11credit memorandum, the Department shall notify the State
12Comptroller, who shall cause the order to be drawn for the
13amount specified and to the person named in the notification
14from the Department. The refund shall be paid by the State
15Treasurer out of the home rule county retailers' occupation
16tax fund.
17    The Department shall forthwith pay over to the State
18Treasurer, ex officio, as trustee, for deposit into the home
19rule county retailers' occupation tax fund, all taxes,
20penalties, and interest collected under this subsection. On or
21before the 25th day of each calendar month, the Department
22shall prepare and certify to the State Comptroller the
23disbursement of stated sums of money to the named counties,
24the county in each instance to be that county for which the
25Department, during the second preceding calendar month,
26collected county use tax from any person whose Illinois

 

 

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1address for titling or registration purposes is given as being
2in that county. The amount to be paid to each county shall be
3the amount (not including credit memoranda) collected under
4this subsection during the second preceding calendar month by
5the Department, and not including an amount equal to the
6amount of refunds made during the second preceding calendar
7month by the Department on behalf of each county, less 2% of
8the remainder, which the Department shall pay into the Tax
9Compliance and Administration Fund. The Department, at the
10time of each monthly disbursement to the counties, shall
11prepare and certify to the State Comptroller the amount to be
12paid into the Tax Compliance and Administration Fund under
13this subsection. Within 10 days after receipt by the State
14Comptroller of the disbursement certification to the counties
15and the Tax Compliance and Administration Fund provided for in
16this subsection to be given to the State Comptroller by the
17Department, the State Comptroller shall cause the orders to be
18drawn for the respective amounts in accordance with the
19directions contained in that certification.
20    A certified copy of an ordinance imposing or discontinuing
21the tax to be collected and enforced by the Department under
22this subsection shall be adopted and either (i) filed with the
23Department after October 1 but on or before April 1, whereupon
24the Department shall proceed to administer and enforce this
25subsection on behalf of the counties as of July 1 next
26following the adoption and filing; or (ii) filed with the

 

 

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1Department after April 1 but on or before October 1, whereupon
2the Department shall proceed to administer and enforce this
3subsection on behalf of the counties as of January 1 next
4following the adoption and filing. No ordinance may be filed
5with the Department under this subsection before the effective
6date of this amendatory Act of the 103rd General Assembly. The
7Department shall not begin collection and enforcement in
8accordance with this subsection before January 1, 2025.
9    Nothing in this subsection shall prevent a home rule
10county from collecting the tax pursuant to subsection (b) in
11any situation where the tax is not collected by the Department
12under this subsection.
13    (d) This Section shall be known and may be cited as the
14"Home Rule County Use Tax Law".
15(Source: P.A. 91-51, eff. 6-30-99.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.