94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2663

 

Introduced 1/20/2006, by Sen. Don Harmon

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-11-6c new

    Amends the Illinois Municipal Code. Sets forth procedures for the Department of Revenue to collect a use tax imposed by a home rule municipality with 2,000,000 or more inhabitants upon the privilege of using motor vehicles that are acquired by nonretail purchase, gift, or transfer.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning local government.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Municipal Code is amended by adding
5 Section 8-11-6c as follows:
 
6     (65 ILCS 5/8-11-6c new)
7     Sec. 8-11-6c. Collection of certain vehicle use taxes.
8     (a) Whenever any home rule municipality with 2,000,000 or
9 more inhabitants imposes a tax upon the privilege of using in
10 that municipality any motor vehicle that is acquired by
11 nonretail purchase, gift, or transfer, the municipality may
12 enter into an agreement with the Illinois Department of Revenue
13 for that Department to collect the tax on behalf of the
14 municipality.
15     (b) During the term of the agreement the tax shall be
16 remitted to the State, or an exemption determination must be
17 obtained from the Department before the title or certificate of
18 registration for the property may be issued. The tax or proof
19 of exemption may be transmitted to the Department by way of the
20 State agency with which, or State officer with whom, the
21 tangible personal property must be titled or registered if the
22 Department and that agency or State officer determine that this
23 procedure will expedite the processing of applications for
24 title or registration.
25     (c) The Department shall have full power to administer and
26 enforce this Section; to collect all taxes, penalties, and
27 interest due hereunder; to dispose of taxes, penalties, and
28 interest so collected in the manner provided in subsection (d),
29 and to determine all rights to credit memoranda or refunds
30 arising on account of the erroneous payment of tax, penalty, or
31 interest hereunder. In the administration of, and compliance
32 with, this Section, the Department and persons who are subject

 

 

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1 to this Section shall have the same procedural rights,
2 remedies, privileges, immunities, powers, and duties, and be
3 subject to the same conditions, restrictions, limitations,
4 penalties, and definitions of terms, and employ the same modes
5 of procedure, as are prescribed in the Use Tax Act, as now or
6 hereafter amended, that are not inconsistent with this Section,
7 as fully as if provisions contained in the Use Tax Act were set
8 forth in this Section.
9     (d) (1) The Department shall forthwith pay over to the
10 State Treasurer, ex officio, as trustee, all taxes and
11 penalties collected hereunder. On or before the 25th day of
12 each calendar month, the Department shall prepare and certify
13 to the Comptroller the disbursement of stated sums of money to
14 named municipalities for which taxes or penalties were paid
15 hereunder to the Department during the second preceding
16 calendar month:
17         (i) an amount to be paid to each municipality, which
18     shall equal the taxes and penalties collected by the
19     Department for the municipality pursuant to this Section
20     during the preceding calendar month, less 2% of the total
21     amount of taxes and penalties collected by the Department
22     for the municipality pursuant to this Section or the actual
23     cost of collection of such taxes and penalties determined
24     pursuant to the agreement, whichever is less, which shall
25     be retained by the State; and
26         (ii) the total amount to be retained by the State
27     pursuant to subparagraph (i), such amount to be deposited
28     into the General Revenue Fund of the State treasury and
29     used to cover the costs incurred by the Department in
30     collecting such taxes and penalties.
31     (2) Within 7 days after receiving the certifications
32 described in paragraph (1), the Comptroller shall issue orders
33 for payment of the amounts specified in subparagraph (i) of
34 paragraph (1).