Full Text of HB0949 101st General Assembly
HB0949 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB0949 Introduced , by Rep. Michael J. Madigan SYNOPSIS AS INTRODUCED: | | 65 ILCS 5/8-11-5 | from Ch. 24, par. 8-11-5 |
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Amends the Home Rule Municipal Service Occupation 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 |
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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 | 5 | | changing Section 8-11-5 as follows:
| 6 | | (65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
| 7 | | Sec. 8-11-5. Home Rule Municipal Service Occupation Tax | 8 | | Act. The
The
corporate authorities of a home rule municipality | 9 | | may
impose a tax upon all persons engaged, in such | 10 | | municipality, in the
business of making sales of service at the | 11 | | same rate of tax imposed
pursuant to Section 8-11-1, of the | 12 | | selling price of all tangible personal
property transferred by | 13 | | such servicemen either in the form of tangible
personal | 14 | | property or in the form of real estate as an incident to a sale | 15 | | of
service. If imposed, such tax shall only be imposed in 1/4% | 16 | | increments. On
and after September 1, 1991, this additional tax | 17 | | may not be imposed on the
sales of food for human consumption | 18 | | which is to be consumed off the
premises where it is sold | 19 | | (other than alcoholic beverages, soft
drinks and food which has | 20 | | been prepared for immediate consumption) and
prescription and | 21 | | nonprescription medicines, drugs, medical appliances and
| 22 | | insulin, urine testing materials, syringes and needles used by | 23 | | diabetics.
The tax imposed by a home rule municipality
pursuant |
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| 1 | | to this Section and all civil penalties that may be assessed as
| 2 | | an incident thereof shall be collected and enforced by the | 3 | | State
Department of Revenue. The certificate of registration | 4 | | which is issued
by the Department to a retailer under the | 5 | | Retailers' Occupation Tax
Act or under the Service Occupation | 6 | | Tax Act shall permit
such registrant to engage in a business | 7 | | which is taxable under any
ordinance or resolution enacted | 8 | | pursuant to this Section without
registering separately with | 9 | | the Department under such ordinance or
resolution or under this | 10 | | Section. The Department shall have full power
to administer and | 11 | | enforce this Section; to collect all taxes and
penalties due | 12 | | hereunder; to dispose of taxes and penalties so collected
in | 13 | | the manner hereinafter provided, and to determine all rights to
| 14 | | credit memoranda arising on account of the erroneous payment of | 15 | | tax or
penalty hereunder. In the administration of, and | 16 | | compliance with, this
Section the Department and persons who | 17 | | are subject to this Section
shall have the same rights, | 18 | | remedies, privileges, immunities, powers and
duties, and be | 19 | | subject to the same conditions, restrictions,
limitations, | 20 | | penalties and definitions of terms, and employ the same
modes | 21 | | of procedure, as are prescribed in Sections 1a-1, 2, 2a, 3 | 22 | | through
3-50 (in respect to all provisions therein other than | 23 | | the State rate of
tax), 4 (except that the reference to the | 24 | | State shall be to the taxing
municipality), 5, 7, 8 (except | 25 | | that the jurisdiction to which the tax shall
be a debt to the | 26 | | extent indicated in that Section 8 shall be the taxing
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| 1 | | municipality), 9 (except as to the disposition of taxes and | 2 | | penalties
collected, and except that the returned merchandise | 3 | | credit for this
municipal tax may not be taken against any | 4 | | State tax), 10, 11, 12
(except the reference therein to Section | 5 | | 2b of the Retailers' Occupation
Tax Act), 13 (except that any | 6 | | reference to the State shall mean the
taxing municipality), the | 7 | | first paragraph of Section 15, 16, 17
(except that credit | 8 | | memoranda issued hereunder may not be used to
discharge any | 9 | | State tax liability), 18, 19 and 20 of the Service
Occupation | 10 | | Tax Act and Section 3-7 of the Uniform Penalty and Interest | 11 | | Act,
as fully as if those provisions were set forth herein. | 12 | | No tax may be imposed by a home rule municipality pursuant | 13 | | to this
Section unless such municipality also imposes a tax at | 14 | | the same rate
pursuant to Section 8-11-1 of this Act.
| 15 | | Persons subject to any tax imposed pursuant to the | 16 | | authority granted
in this Section may reimburse themselves for | 17 | | their serviceman's tax
liability hereunder by separately | 18 | | stating such tax as an additional
charge, which charge may be | 19 | | stated in combination, in a single amount,
with State tax which | 20 | | servicemen are authorized to collect under the
Service Use Tax | 21 | | Act, pursuant to such bracket schedules as the
Department may | 22 | | prescribe.
| 23 | | Whenever the Department determines that a refund should be | 24 | | made under
this Section to a claimant instead of issuing credit | 25 | | memorandum, the
Department shall notify the State Comptroller, | 26 | | who shall cause the
order to be drawn for the amount specified, |
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| 1 | | and to the person named,
in such notification from the | 2 | | Department. Such refund shall be paid by
the State Treasurer | 3 | | out of the home rule municipal retailers' occupation
tax fund.
| 4 | | The Department shall forthwith pay over to the State | 5 | | Treasurer,
ex-officio, as trustee, all taxes and penalties | 6 | | collected hereunder. | 7 | | As soon as possible after the first day of each month, | 8 | | beginning January 1, 2011, upon certification of the Department | 9 | | of Revenue, the Comptroller shall order transferred, and the | 10 | | Treasurer shall transfer, to the STAR Bonds Revenue Fund the | 11 | | local sales tax increment, as defined in the Innovation | 12 | | Development and Economy Act, collected under this Section | 13 | | during the second preceding calendar month for sales within a | 14 | | STAR bond district. | 15 | | After the monthly transfer to the STAR Bonds Revenue Fund, | 16 | | on
or before the 25th day of each calendar month, the | 17 | | Department shall
prepare and certify to the Comptroller the | 18 | | disbursement of stated sums
of money to named municipalities, | 19 | | the municipalities to be those from
which suppliers and | 20 | | servicemen have paid taxes or penalties hereunder to
the | 21 | | Department during the second preceding calendar month. The | 22 | | amount
to be paid to each municipality shall be the amount (not | 23 | | including credit
memoranda) collected hereunder during the | 24 | | second preceding calendar
month by the Department, and not | 25 | | including an amount equal to the amount
of refunds made during | 26 | | the second preceding calendar month by the
Department on behalf |
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| 1 | | of such municipality, and not including any amounts that are | 2 | | transferred to the STAR Bonds Revenue Fund, less 1.5% of the | 3 | | remainder, which the Department shall transfer into the Tax | 4 | | Compliance and Administration Fund. The Department, at the time | 5 | | of each monthly disbursement to the municipalities, shall | 6 | | prepare and certify to the State Comptroller the amount to be | 7 | | transferred into the Tax Compliance and Administration Fund | 8 | | under this Section. Within 10 days after receipt, by
the | 9 | | Comptroller, of the disbursement certification to the | 10 | | municipalities and the Tax Compliance and Administration Fund
| 11 | | provided for in this Section to be given to the Comptroller by | 12 | | the
Department, the Comptroller shall cause the orders to be | 13 | | drawn for the
respective amounts in accordance with the | 14 | | directions contained in such
certification.
| 15 | | In addition to the disbursement required by the preceding | 16 | | paragraph and
in order to mitigate delays caused by | 17 | | distribution procedures, an
allocation shall, if requested, be | 18 | | made within 10 days after January 14, 1991,
and in November of | 19 | | 1991 and each year thereafter, to each municipality that
| 20 | | received more than $500,000 during the preceding fiscal year, | 21 | | (July 1 through
June 30) whether collected by the municipality | 22 | | or disbursed by the Department
as required by this Section. | 23 | | Within 10 days after January 14, 1991,
participating | 24 | | municipalities shall notify the Department in writing of their
| 25 | | intent to participate. In addition, for the initial | 26 | | distribution,
participating municipalities shall certify to |
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| 1 | | the Department the amounts
collected by the municipality for | 2 | | each month under its home rule occupation and
service | 3 | | occupation tax during the period July 1, 1989 through June 30, | 4 | | 1990.
The allocation within 10 days after January 14, 1991,
| 5 | | shall be in an amount equal to the monthly average of these | 6 | | amounts,
excluding the 2 months of highest receipts. Monthly | 7 | | average for the period
of July 1, 1990 through June 30, 1991 | 8 | | will be determined as follows: the
amounts collected by the | 9 | | municipality under its home rule occupation and
service | 10 | | occupation tax during the period of July 1, 1990 through | 11 | | September 30,
1990, plus amounts collected by the Department | 12 | | and paid to such
municipality through June 30, 1991, excluding | 13 | | the 2 months of highest
receipts. The monthly average for each | 14 | | subsequent period of July 1 through
June 30 shall be an amount | 15 | | equal to the monthly distribution made to each
such | 16 | | municipality under the preceding paragraph during this period,
| 17 | | excluding the 2 months of highest receipts. The distribution | 18 | | made in
November 1991 and each year thereafter under this | 19 | | paragraph and the
preceding paragraph shall be reduced by the | 20 | | amount allocated and disbursed
under this paragraph in the | 21 | | preceding period of July 1 through June 30.
The Department | 22 | | shall prepare and certify to the Comptroller for
disbursement | 23 | | the allocations made in accordance with this paragraph.
| 24 | | Nothing in this Section shall be construed to authorize a
| 25 | | municipality to impose a tax upon the privilege of engaging in | 26 | | any
business which under the constitution of the United States |
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| 1 | | may not be
made the subject of taxation by this State.
| 2 | | An ordinance or resolution imposing or discontinuing a tax | 3 | | hereunder or
effecting a change in the rate thereof shall be | 4 | | adopted and a certified
copy thereof filed with the Department | 5 | | on or before the first day of June,
whereupon the Department | 6 | | shall proceed to administer and enforce this
Section as of the | 7 | | first day of September next following such adoption and
filing. | 8 | | Beginning January 1, 1992, an ordinance or resolution imposing | 9 | | or
discontinuing the tax hereunder or effecting a change in the | 10 | | rate thereof
shall be adopted and a certified copy thereof | 11 | | filed with the Department on
or before the first day of July, | 12 | | whereupon the Department shall proceed to
administer and | 13 | | enforce this Section as of the first day of October next
| 14 | | following such adoption and filing. Beginning January 1, 1993, | 15 | | an ordinance
or resolution imposing or discontinuing the tax | 16 | | hereunder or effecting a
change in the rate thereof shall be | 17 | | adopted and a certified copy thereof
filed with the Department | 18 | | on or before the first day of October, whereupon
the Department | 19 | | shall proceed to administer and enforce this Section as of
the | 20 | | first day of January next following such adoption and filing.
| 21 | | However, a municipality located in a county with a population | 22 | | in excess of
3,000,000 that elected to become a home rule unit | 23 | | at the general primary
election in 1994 may adopt an ordinance | 24 | | or resolution imposing the tax under
this Section and file a | 25 | | certified copy of the ordinance or resolution with the
| 26 | | Department on or before July 1, 1994. The Department shall then |
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| 1 | | proceed to
administer and enforce this Section as of October 1, | 2 | | 1994.
Beginning April 1, 1998, an ordinance or
resolution | 3 | | imposing or
discontinuing the tax hereunder or effecting a | 4 | | change in the rate thereof shall
either (i) be adopted and a | 5 | | certified copy thereof filed with the Department on
or
before | 6 | | the first day of April, whereupon the Department shall proceed | 7 | | to
administer and enforce this Section as of the first day of | 8 | | July next following
the adoption and filing; or (ii) be adopted | 9 | | and a certified copy thereof filed
with the Department on or | 10 | | before the first day of October, whereupon the
Department shall | 11 | | proceed to administer and enforce this Section as of the first
| 12 | | day of January next following the adoption and filing.
| 13 | | Any unobligated balance remaining in the Municipal | 14 | | Retailers' Occupation
Tax Fund on December 31, 1989, which fund | 15 | | was abolished by Public Act
85-1135, and all receipts of | 16 | | municipal tax as a result of audits of
liability periods prior | 17 | | to January 1, 1990, shall be paid into the Local
Government Tax | 18 | | Fund, for distribution as provided by this Section prior to
the | 19 | | enactment of Public Act 85-1135. All receipts of municipal tax | 20 | | as a
result of an assessment not arising from an audit, for | 21 | | liability periods
prior to January 1, 1990, shall be paid into | 22 | | the Local Government Tax Fund
for distribution before July 1, | 23 | | 1990, as provided by this Section prior to
the enactment of | 24 | | Public Act 85-1135, and on and after July 1, 1990, all
such | 25 | | receipts shall be distributed as provided in Section 6z-18 of | 26 | | the
State Finance Act.
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| 1 | | As used in this Section, "municipal" and "municipality" | 2 | | means a city,
village or incorporated town, including an | 3 | | incorporated town which has
superseded a civil township.
| 4 | | This Section shall be known and may be cited as the Home | 5 | | Rule Municipal
Service Occupation Tax Act.
| 6 | | (Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
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