99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB0789

 

Introduced , by Rep. Michael J. Madigan

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/8-11-6  from Ch. 24, par. 8-11-6

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


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A BILL FOR

 

HB0789LRB099 04602 AWJ 24630 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 8-11-6 as follows:
 
6    (65 ILCS 5/8-11-6)  (from Ch. 24, par. 8-11-6)
7    Sec. 8-11-6. Home Rule Municipal Use Tax Act.
8    (a) The The corporate authorities of a home rule
9municipality may impose a tax upon the privilege of using, in
10such municipality, any item of tangible personal property which
11is purchased at retail from a retailer, and which is titled or
12registered at a location within the corporate limits of such
13home rule municipality with an agency of this State's
14government, at a rate which is an increment of 1/4% and based
15on the selling price of such tangible personal property, as
16"selling price" is defined in the Use Tax Act. In home rule
17municipalities with less than 2,000,000 inhabitants, the tax
18shall be collected by the municipality imposing the tax from
19persons whose Illinois address for titling or registration
20purposes is given as being in such municipality.
21    (b) In home rule municipalities with 2,000,000 or more
22inhabitants, the corporate authorities of the municipality may
23additionally impose a tax beginning July 1, 1991 upon the

 

 

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1privilege of using in the municipality, any item of tangible
2personal property, other than tangible personal property
3titled or registered with an agency of the State's government,
4that is purchased at retail from a retailer located outside the
5corporate limits of the municipality, at a rate that is an
6increment of 1/4% not to exceed 1% and based on the selling
7price of the tangible personal property, as "selling price" is
8defined in the Use Tax Act. Such tax shall be collected from
9the purchaser either by the municipality imposing such tax or
10by the Department of Revenue pursuant to an agreement between
11the Department and the municipality.
12    To prevent multiple home rule taxation, the use in a home
13rule municipality of tangible personal property that is
14acquired outside the municipality and caused to be brought into
15the municipality by a person who has already paid a home rule
16municipal tax in another municipality in respect to the sale,
17purchase, or use of that property, shall be exempt to the
18extent of the amount of the tax properly due and paid in the
19other home rule municipality.
20    (c) If a municipality having 2,000,000 or more inhabitants
21imposes the tax authorized by subsection (a), then the tax
22shall be collected by the Illinois Department of Revenue when
23the property is purchased at retail from a retailer in the
24county in which the home rule municipality imposing the tax is
25located, and in all contiguous counties. The tax shall be
26remitted to the State, or an exemption determination must be

 

 

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1obtained from the Department before the title or certificate of
2registration for the property may be issued. The tax or proof
3of exemption may be transmitted to the Department by way of the
4State agency with which, or State officer with whom, the
5tangible personal property must be titled or registered if the
6Department and that agency or State officer determine that this
7procedure will expedite the processing of applications for
8title or registration.
9    The Department shall have full power to administer and
10enforce this Section to collect all taxes, penalties and
11interest due hereunder, to dispose of taxes, penalties and
12interest so collected in the manner hereinafter provided, and
13determine all rights to credit memoranda or refunds arising on
14account of the erroneous payment of tax, penalty or interest
15hereunder. In the administration of and compliance with this
16Section the Department and persons who are subject to this
17Section shall have the same rights, remedies, privileges,
18immunities, powers and duties, and be subject to the same
19conditions, restrictions, limitations, penalties and
20definitions of terms, and employ the same modes of procedure as
21are prescribed in Sections 2 (except the definition of
22"retailer maintaining a place of business in this State"), 3
23(except provisions pertaining to the State rate of tax, and
24except provisions concerning collection or refunding of the tax
25by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22 of the
26Use Tax Act, which are not inconsistent with this Section, as

 

 

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1fully as if provisions contained in those Sections of the Use
2Tax Act were set forth herein.
3    Whenever the Department determines that a refund shall be
4made under this Section to a claimant instead of issuing a
5credit memorandum, the Department shall notify the State
6Comptroller, who shall cause the order to be drawn for the
7amount specified, and to the person named, in such notification
8from the Department. Such refund shall be paid by the State
9Treasurer out of the home rule municipal retailers' occupation
10tax fund.
11    The Department shall forthwith pay over to the State
12Treasurer, ex officio, as trustee, all taxes, penalties and
13interest collected hereunder. On or before the 25th day of each
14calendar month, the Department shall prepare and certify to the
15State Comptroller the disbursement of stated sums of money to
16named municipalities, the municipality in each instance to be
17that municipality from which the Department during the second
18preceding calendar month, collected municipal use tax from any
19person whose Illinois address for titling or registration
20purposes is given as being in such municipality. The amount to
21be paid to each municipality shall be the amount (not including
22credit memoranda) collected hereunder during the second
23preceding calendar month by the Department, and not including
24an amount equal to the amount of refunds made during the second
25preceding calendar month by the Department on behalf of such
26municipality, less 2% of the balance, which sum shall be

 

 

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1retained by the State Treasurer to cover the costs incurred by
2the Department in administering and enforcing the provisions of
3this Section. The Department, at the time of each monthly
4disbursement to the municipalities, shall prepare and certify
5to the Comptroller the amount so retained by the State
6Treasurer, which shall be transferred into the Tax Compliance
7and Administration Fund. Within 10 days after receipt by the
8State Comptroller of the disbursement certification to the
9municipalities provided for in this Section to be given to the
10State Comptroller by the Department, the State Comptroller
11shall cause the orders to be drawn for the respective amounts
12in accordance with the directions contained in that
13certification.
14    Any ordinance imposing or discontinuing any tax to be
15collected and enforced by the Department under this Section
16shall be adopted and a certified copy thereof filed with the
17Department on or before October 1, whereupon the Department of
18Revenue shall proceed to administer and enforce this Section on
19behalf of the municipalities as of January 1 next following
20such adoption and filing. Beginning April 1, 1998, any
21ordinance imposing or discontinuing any tax to be collected and
22enforced by the Department under this Section shall either (i)
23be adopted and a certified copy thereof filed with the
24Department on or before April 1, whereupon the Department of
25Revenue shall proceed to administer and enforce this Section on
26behalf of the municipalities as of July 1 next following the

 

 

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1adoption and filing; or (ii) be adopted and a certified copy
2thereof filed with the Department on or before October 1,
3whereupon the Department of Revenue shall proceed to administer
4and enforce this Section on behalf of the municipalities as of
5January 1 next following the adoption and filing.
6    Nothing in this subsection (c) shall prevent a home rule
7municipality from collecting the tax pursuant to subsection (a)
8in any situation where such tax is not collected by the
9Department of Revenue under this subsection (c).
10    (d) Any unobligated balance remaining in the Municipal
11Retailers' Occupation Tax Fund on December 31, 1989, which fund
12was abolished by Public Act 85-1135, and all receipts of
13municipal tax as a result of audits of liability periods prior
14to January 1, 1990, shall be paid into the Local Government Tax
15Fund, for distribution as provided by this Section prior to the
16enactment of Public Act 85-1135. All receipts of municipal tax
17as a result of an assessment not arising from an audit, for
18liability periods prior to January 1, 1990, shall be paid into
19the Local Government Tax Fund for distribution before July 1,
201990, as provided by this Section prior to the enactment of
21Public Act 85-1135, and on and after July 1, 1990, all such
22receipts shall be distributed as provided in Section 6z-18 of
23the State Finance Act.
24    (e) As used in this Section, "Municipal" and "Municipality"
25means a city, village or incorporated town, including an
26incorporated town which has superseded a civil township.

 

 

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1    (f) This Section shall be known and may be cited as the
2Home Rule Municipal Use Tax Act.
3(Source: P.A. 98-1049, eff. 8-25-14.)