Full Text of HB0991 103rd General Assembly
HB0991 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB0991 Introduced 1/12/2023, by Rep. Anthony DeLuca SYNOPSIS AS INTRODUCED: |
| 65 ILCS 5/8-11-1.1 | from Ch. 24, par. 8-11-1.1 | 65 ILCS 5/8-11-1.2 | from Ch. 24, par. 8-11-1.2 | 65 ILCS 5/8-11-1.3 | from Ch. 24, par. 8-11-1.3 | 65 ILCS 5/8-11-1.4 | from Ch. 24, par. 8-11-1.4 | 65 ILCS 5/8-11-1.5 | from Ch. 24, par. 8-11-1.5 |
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Amends the Illinois Municipal Code. Provides that the rate of tax under the Non-Home Rule
Municipal Retailers' Occupation Tax Act, the Non-Home Rule Municipal
Service Occupation Tax Act, and the Non-Home Rule
Municipal Use Tax Act may not exceed 2% (currently, 1%). Provides that the rate of tax that may be imposed for municipal operations may not exceed 1%. With respect to the Non-Home Rule
Municipal Retailers' Occupation Tax Act, the Non-Home Rule Municipal
Service Occupation Tax Act, and the Non-Home Rule
Municipal Use Tax Act, provides that the term "public infrastructure" includes the acquisition, repair, and maintenance of public safety equipment. Effective immediately.
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 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 Sections 8-11-1.1, 8-11-1.2, 8-11-1.3, 8-11-1.4, and | 6 | | 8-11-1.5 as follows: | 7 | | (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1) | 8 | | Sec. 8-11-1.1. Non-home rule municipalities; imposition of | 9 | | taxes. | 10 | | (a) The corporate authorities of a non-home rule
| 11 | | municipality
may, upon approval of the electors of the | 12 | | municipality pursuant to
subsection (b) of this Section, | 13 | | impose by ordinance or resolution the tax authorized in | 14 | | Sections 8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act. | 15 | | (b) The corporate authorities of the municipality may by | 16 | | ordinance or
resolution call for the submission to the | 17 | | electors of the municipality
the question of whether the | 18 | | municipality shall impose such tax or increase the rate of | 19 | | such tax . Such
question shall be certified by the municipal | 20 | | clerk to the election
authority in accordance with Section | 21 | | 28-5 of the Election Code and shall be
in a form in accordance | 22 | | with Section 16-7 of the Election Code. | 23 | | Notwithstanding any provision of law to the contrary, if |
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| 1 | | the proceeds of the tax may be used for municipal operations | 2 | | pursuant to Section 8-11-1.3, 8-11-1.4, or 8-11-1.5, then the | 3 | | election authority must submit the question in substantially | 4 | | the following form: | 5 | | Shall the corporate authorities of the municipality be | 6 | | authorized to levy a tax at a rate of (rate)% for | 7 | | expenditures on municipal operations, expenditures on | 8 | | public infrastructure, or property tax relief? | 9 | | If a majority of the electors in the municipality voting | 10 | | upon the
question vote in the affirmative, such tax shall be | 11 | | imposed. | 12 | | Until January 1, 1992, an ordinance or resolution imposing | 13 | | the tax of not more than 1% hereunder or
discontinuing the same | 14 | | shall be adopted and a certified copy thereof,
together with a | 15 | | certification that the ordinance or resolution received
| 16 | | referendum approval in the case of the imposition of such tax, | 17 | | filed with
the Department of Revenue, on or before the first | 18 | | day of June, whereupon
the Department shall proceed to | 19 | | administer and enforce
the additional tax or to discontinue | 20 | | the tax, as the case may be, as of the
first day of September | 21 | | next following such adoption and filing. | 22 | | Beginning January 1, 1992 and through December 31, 1992, | 23 | | an ordinance or resolution imposing
or discontinuing the tax | 24 | | hereunder shall be adopted and a certified copy
thereof filed | 25 | | with the Department on or before the first day of July,
| 26 | | whereupon the Department shall proceed to administer and |
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| 1 | | enforce this
Section as of the first day of October next | 2 | | following such adoption and filing. | 3 | | Beginning January 1, 1993, and through September 30, 2002, | 4 | | an ordinance or resolution imposing or
discontinuing the tax | 5 | | hereunder shall be adopted and a certified copy
thereof filed | 6 | | with the Department on or before the first day of October,
| 7 | | whereupon the Department shall proceed to administer and | 8 | | enforce this
Section as of the first day of January next | 9 | | following such adoption and filing. | 10 | | Beginning October 1, 2002, and through December 31, 2013, | 11 | | an ordinance or resolution imposing or
discontinuing the tax
| 12 | | under this Section or effecting a change in the rate of tax | 13 | | must either (i) be
adopted
and a
certified copy of the | 14 | | ordinance or resolution filed with the Department on or
before | 15 | | the first day
of April,
whereupon the Department shall proceed | 16 | | to administer and enforce this Section
as of the
first day of | 17 | | July next following the adoption and filing; or (ii) be | 18 | | adopted
and a certified
copy of the ordinance or resolution | 19 | | filed with the Department on or before the
first day
of | 20 | | October,
whereupon the Department shall proceed to administer | 21 | | and enforce this Section
as of the
first day of January next | 22 | | following the adoption and filing. | 23 | | Beginning January 1, 2014, if an ordinance or resolution | 24 | | imposing the tax under this Section, discontinuing the tax | 25 | | under this Section, or effecting a change in the rate of tax | 26 | | under this Section is adopted, a certified copy thereof, |
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| 1 | | together with a certification that the ordinance or resolution | 2 | | received referendum approval in the case of the imposition of | 3 | | or increase in the rate of such tax, shall be filed with the | 4 | | Department of Revenue, either (i) on or before the first day of | 5 | | May, whereupon the Department shall proceed to administer and | 6 | | enforce this Section as of the first day of July next following | 7 | | the adoption and filing; or (ii) on or before the first day of | 8 | | October, whereupon the Department shall proceed to administer | 9 | | and enforce this Section as of the first day of January next | 10 | | following the adoption and filing. | 11 | | Notwithstanding any provision in this Section to the | 12 | | contrary, if, in a non-home rule municipality with more than | 13 | | 150,000 but fewer than 200,000 inhabitants, as determined by | 14 | | the last preceding federal decennial census, an ordinance or | 15 | | resolution under this Section imposes or discontinues a tax or | 16 | | changes the tax rate as of July 1, 2007, then that ordinance or | 17 | | resolution, together with a certification that the
ordinance | 18 | | or resolution received referendum approval in the case of the
| 19 | | imposition of the tax, must be adopted and a certified copy of | 20 | | that ordinance or resolution must be filed with the Department | 21 | | on or before May 15, 2007, whereupon the Department shall | 22 | | proceed to administer and enforce this Section as of July 1, | 23 | | 2007.
| 24 | | Notwithstanding any provision in this Section to the | 25 | | contrary, if, in a non-home rule municipality with more than | 26 | | 6,500 but fewer than 7,000 inhabitants, as determined by the |
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| 1 | | last preceding federal decennial census, an ordinance or | 2 | | resolution under this Section imposes or discontinues a tax or | 3 | | changes the tax rate on or before May 20, 2009, then that | 4 | | ordinance or resolution, together with a certification that | 5 | | the
ordinance or resolution received referendum approval in | 6 | | the case of the
imposition of the tax, must be adopted and a | 7 | | certified copy of that ordinance or resolution must be filed | 8 | | with the Department on or before May 20, 2009, whereupon the | 9 | | Department shall proceed to administer and enforce this | 10 | | Section as of July 1, 2009. | 11 | | A non-home rule municipality may file
a
certified copy of | 12 | | an ordinance or resolution, with a certification that the
| 13 | | ordinance or resolution received referendum approval in the | 14 | | case of the
imposition of the tax, with the
Department of | 15 | | Revenue, as required under this Section, only after October 2,
| 16 | | 2000. | 17 | | The tax authorized by this Section may not be more than 2% | 18 | | 1% and
may be imposed only in 1/4% increments. The rate of this | 19 | | tax that may be imposed for municipal operations may not | 20 | | exceed 1%; therefore, notwithstanding any other provision of | 21 | | law, if the tax under this Section is imposed at a rate of more | 22 | | than 1%, then, beginning with the first disbursement to occur | 23 | | on or after the effective date of the increase, the total | 24 | | amount that may be used for municipal operations may not | 25 | | exceed the total amount of the proceeds disbursed to the | 26 | | municipality under Sections 8-11-1.3, 8-11-1.4, and 8-11-1.5, |
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| 1 | | multiplied by a fraction having a numerator of 1 and a | 2 | | denominator of the rate of tax. | 3 | | (Source: P.A. 98-584, eff. 8-27-13.)
| 4 | | (65 ILCS 5/8-11-1.2) (from Ch. 24, par. 8-11-1.2)
| 5 | | Sec. 8-11-1.2. Definition. As used in Sections 8-11-1.3,
| 6 | | 8-11-1.4 and 8-11-1.5 of this Act:
| 7 | | (a) "Public infrastructure" means
municipal roads and | 8 | | streets, access roads, bridges, and sidewalks; waste
disposal | 9 | | systems; the acquisition, repair, and maintenance of public | 10 | | safety equipment; and water and sewer line extensions, water | 11 | | distribution
and purification facilities, storm water drainage | 12 | | and retention facilities,
and sewage treatment facilities.
For | 13 | | purposes of referenda authorizing the
imposition of taxes by | 14 | | the City of DuQuoin under Sections 8-11-1.3, 8-11-1.4,
and | 15 | | 8-11-1.5 of this
Act
that are approved in November, 2002, or | 16 | | for purposes of referenda authorizing the
imposition of taxes | 17 | | by the Village of Forsyth under Sections 8-11-1.3, 8-11-1.4,
| 18 | | and 8-11-1.5 of this
Act
that are approved after the effective | 19 | | date of this amendatory Act of the 94th General Assembly,
| 20 | | "public infrastructure" shall also
include public schools.
| 21 | | (a-5) "Public safety equipment" means firefighting, | 22 | | police, rescue, transportation, or communications equipment | 23 | | used by police departments, fire departments, or other first | 24 | | responders, including, but not limited to, police vehicles, | 25 | | fire trucks, surveillance equipment, and body cameras. |
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| 1 | | (b) "Property tax relief" means the action of a | 2 | | municipality to reduce the
levy for real estate taxes or avoid | 3 | | an increase in the levy for real estate
taxes that would | 4 | | otherwise have been required. Property tax relief or the
| 5 | | avoidance of property tax must uniformly apply to all classes | 6 | | of property.
| 7 | | (Source: P.A. 94-1078, eff. 1-9-07; 95-331, eff. 8-21-07.)
| 8 | | (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
| 9 | | Sec. 8-11-1.3. Non-Home Rule Municipal Retailers' | 10 | | Occupation Tax Act. The corporate authorities of a non-home | 11 | | rule municipality may impose
a tax upon all persons engaged in | 12 | | the business of selling tangible
personal property, other than | 13 | | on an item of tangible personal property
which is titled and | 14 | | registered by an agency of this State's Government,
at retail | 15 | | in the municipality for expenditure on
public infrastructure | 16 | | or for property tax relief or both as defined in
Section | 17 | | 8-11-1.2 if approved by
referendum as provided in Section | 18 | | 8-11-1.1, of the gross receipts from such
sales made in the | 19 | | course of such business.
If the tax is approved by referendum | 20 | | on or after July 14, 2010 (the effective date of Public Act | 21 | | 96-1057), the corporate authorities of a non-home rule | 22 | | municipality may, until July 1, 2030, use the proceeds of the | 23 | | tax for expenditure on municipal operations, in addition to or | 24 | | in lieu of any expenditure on public infrastructure or for | 25 | | property tax relief. The tax imposed may not be more than 2% 1% |
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| 1 | | and may be imposed only in
1/4% increments. The rate of this | 2 | | tax that may be imposed for municipal operations may not | 3 | | exceed 1%; therefore, notwithstanding any other provision of | 4 | | law, if the tax under this Section is imposed at a rate of more | 5 | | than 1%, then, beginning with the first disbursement to occur | 6 | | on or after the effective date of the increase, the total | 7 | | amount that may be used for municipal operations may not | 8 | | exceed the total amount of the proceeds disbursed to the | 9 | | municipality under this Section, Section 8-11-1.4, and Section | 10 | | 8-11-1.5, multiplied by a fraction having a numerator of 1 and | 11 | | a denominator of the rate of tax. The tax may not be imposed on | 12 | | tangible personal property taxed at the 1% rate under the | 13 | | Retailers' Occupation Tax Act (or at the 0% rate imposed under | 14 | | this amendatory Act of the 102nd General Assembly). Beginning | 15 | | December 1, 2019, this tax is not imposed on sales of aviation | 16 | | fuel unless the tax revenue is expended for airport-related | 17 | | purposes. If a municipality does not have an airport-related | 18 | | purpose to which it dedicates aviation fuel tax revenue, then | 19 | | aviation fuel is excluded from the tax. Each municipality must | 20 | | comply with the certification requirements for airport-related | 21 | | purposes under Section 2-22 of the Retailers' Occupation Tax | 22 | | Act. For purposes of this Section, "airport-related purposes" | 23 | | has the meaning ascribed in Section 6z-20.2 of the State | 24 | | Finance Act. This exclusion for aviation fuel only applies for | 25 | | so long as the revenue use requirements of 49 U.S.C. 47107(b) | 26 | | and 49 U.S.C. 47133 are binding on the municipality.
The tax |
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| 1 | | imposed by a
municipality pursuant to this Section and all | 2 | | civil penalties that may be
assessed as an incident thereof | 3 | | shall be collected and enforced by the
State Department of | 4 | | Revenue. The certificate of registration which is
issued by | 5 | | the Department to a retailer under the Retailers' Occupation | 6 | | Tax
Act shall permit such retailer 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 | 10 | | this Section. The Department
shall have full power to | 11 | | administer and enforce this Section; to collect
all taxes and | 12 | | penalties due hereunder; to dispose of taxes and penalties
so | 13 | | collected in the manner hereinafter provided, and to determine | 14 | | all
rights to credit memoranda, arising on account of the | 15 | | erroneous payment
of tax or penalty hereunder. In the | 16 | | administration of, and compliance
with, this Section, the | 17 | | Department and persons who are subject to this
Section shall | 18 | | have the same rights, remedies, privileges, immunities,
powers | 19 | | and duties, and be subject to the same conditions, | 20 | | restrictions,
limitations, penalties and definitions of terms, | 21 | | and employ the same
modes of procedure, as are prescribed in | 22 | | Sections 1, 1a, 1a-1, 1d, 1e,
1f, 1i, 1j, 2 through 2-65 (in | 23 | | respect to all provisions therein other than
the State rate of | 24 | | tax), 2c, 3 (except as to the disposition of taxes and
| 25 | | penalties collected, and except that the retailer's discount | 26 | | is not allowed for taxes paid on aviation fuel that are subject |
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| 1 | | to the revenue use requirements of 49 U.S.C. 47107(b) and 49 | 2 | | U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, | 3 | | 5k, 5l,
6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the | 4 | | Retailers'
Occupation Tax Act and Section 3-7 of the Uniform | 5 | | Penalty and Interest
Act as fully as if those provisions were | 6 | | set forth herein.
| 7 | | No municipality may impose a tax under this Section unless | 8 | | the municipality
also imposes a tax at the same rate under | 9 | | Section 8-11-1.4 of this Code.
| 10 | | Persons subject to any tax imposed pursuant to the | 11 | | authority granted
in this Section may reimburse themselves for | 12 | | their seller's tax
liability hereunder by separately stating | 13 | | such tax as an additional
charge, which charge may be stated in | 14 | | combination, in a single amount,
with State tax which sellers | 15 | | are required to collect under the Use Tax
Act, pursuant to such | 16 | | bracket schedules as the Department may prescribe.
| 17 | | Whenever the Department determines that a refund should be | 18 | | made under
this Section to a claimant instead of issuing a | 19 | | credit memorandum, the
Department shall notify the State | 20 | | Comptroller, who shall cause the
order to be drawn for the | 21 | | amount specified, and to the person named,
in such | 22 | | notification from the Department. Such refund shall be paid by
| 23 | | the State Treasurer out of the non-home rule municipal | 24 | | retailers'
occupation tax fund or the Local Government | 25 | | Aviation Trust Fund, as appropriate.
| 26 | | Except as otherwise provided, the Department shall |
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| 1 | | forthwith pay over to the State Treasurer, ex
officio, as | 2 | | trustee, all taxes and penalties collected hereunder for | 3 | | deposit into the Non-Home Rule Municipal Retailers' Occupation | 4 | | Tax Fund. Taxes and penalties collected on aviation fuel sold | 5 | | on or after December 1, 2019, shall be immediately paid over by | 6 | | the Department to the State Treasurer, ex officio, as trustee, | 7 | | for deposit into the Local Government Aviation Trust Fund. The | 8 | | Department shall only pay moneys into the Local Government | 9 | | Aviation Trust Fund under this Section for so long as the | 10 | | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | 11 | | 47133 are binding on the municipality. | 12 | | As soon as possible after the first day of each month, | 13 | | beginning January 1, 2011, upon certification of the | 14 | | Department of Revenue, the Comptroller shall order | 15 | | transferred, and the Treasurer shall transfer, to the STAR | 16 | | Bonds Revenue Fund the local sales tax increment, as defined | 17 | | in the Innovation Development and Economy Act, collected under | 18 | | this Section during the second preceding calendar month for | 19 | | sales within a STAR bond district. | 20 | | After the monthly transfer to the STAR Bonds Revenue Fund, | 21 | | on or
before the 25th day of each calendar month, the | 22 | | Department shall
prepare and certify to the Comptroller the | 23 | | disbursement of stated sums
of money to named municipalities, | 24 | | the municipalities to be those from
which retailers have paid | 25 | | taxes or penalties hereunder to the Department
during the | 26 | | second preceding calendar month. The amount to be paid to each
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| 1 | | municipality shall be the amount (not including credit | 2 | | memoranda and not including taxes and penalties collected on | 3 | | aviation fuel sold on or after December 1, 2019) collected
| 4 | | hereunder during the second preceding calendar month by the | 5 | | Department plus
an amount the Department determines is | 6 | | necessary to offset any amounts
which were erroneously paid to | 7 | | a different taxing body, and not including
an amount equal to | 8 | | the amount of refunds made during the second preceding
| 9 | | calendar month by the Department on behalf of such | 10 | | municipality, and not
including any amount which the | 11 | | Department determines is necessary to offset
any amounts which | 12 | | were payable to a different taxing body but were
erroneously | 13 | | paid to the municipality, and not including any amounts that | 14 | | are transferred to the STAR Bonds Revenue Fund, less 1.5% of | 15 | | the remainder, which the Department shall transfer into the | 16 | | Tax Compliance and Administration Fund. The Department, at the | 17 | | time of each monthly disbursement to the municipalities, shall | 18 | | prepare and certify to the State Comptroller the amount to be | 19 | | transferred into the Tax Compliance and Administration Fund | 20 | | under this Section. Within 10 days after receipt, by the
| 21 | | Comptroller, of the disbursement certification to the | 22 | | municipalities and the Tax Compliance and Administration Fund
| 23 | | provided for in this Section to be given to the Comptroller by | 24 | | the
Department, the Comptroller shall cause the orders to be | 25 | | drawn for the
respective amounts in accordance with the | 26 | | directions contained in such
certification.
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| 1 | | For the purpose of determining the local governmental unit | 2 | | whose tax
is applicable, a retail sale, by a producer of coal | 3 | | or other mineral
mined in Illinois, is a sale at retail at the | 4 | | place where the coal or
other mineral mined in Illinois is | 5 | | extracted from the earth. This
paragraph does not apply to | 6 | | coal or other mineral when it is delivered
or shipped by the | 7 | | seller to the purchaser at a point outside Illinois so
that the | 8 | | sale is exempt under the Federal Constitution as a sale in
| 9 | | interstate or foreign commerce.
| 10 | | Nothing in this Section shall be construed to authorize a
| 11 | | municipality to impose a tax upon the privilege of engaging in | 12 | | any
business which under the constitution of the United States | 13 | | may not be
made the subject of taxation by this State.
| 14 | | When certifying the amount of a monthly disbursement to a | 15 | | municipality
under this Section, the Department shall increase | 16 | | or decrease such amount
by an amount necessary to offset any | 17 | | misallocation of previous
disbursements. The offset amount | 18 | | shall be the amount erroneously disbursed
within the previous | 19 | | 6 months from the time a misallocation is discovered.
| 20 | | The Department of Revenue shall implement Public Act | 21 | | 91-649 so as to collect the tax on and after January 1, 2002.
| 22 | | As used in this Section, "municipal" and "municipality" | 23 | | mean a city,
village, or incorporated town, including an | 24 | | incorporated town which has
superseded a civil township.
| 25 | | This Section shall be known and may be cited as the | 26 | | Non-Home Rule
Municipal Retailers' Occupation Tax Act.
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| 1 | | (Source: P.A. 101-10, eff. 6-5-19; 101-47, eff. 1-1-20; | 2 | | 101-81, eff. 7-12-19; 101-604, eff. 12-13-19; 102-700, eff. | 3 | | 4-19-22.)
| 4 | | (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
| 5 | | Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation | 6 | | Tax Act. The
corporate authorities of a non-home rule | 7 | | municipality may impose a
tax upon all persons engaged, in | 8 | | such municipality, in the business of
making sales of service | 9 | | for expenditure on
public infrastructure or for property tax | 10 | | relief or both as defined in
Section 8-11-1.2 if approved by
| 11 | | referendum as provided in Section 8-11-1.1, of the selling | 12 | | price of
all tangible personal property transferred by such | 13 | | servicemen either in
the form of tangible personal property or | 14 | | in the form of real estate as
an incident to a sale of service.
| 15 | | If the tax is approved by referendum on or after July 14, 2010 | 16 | | (the effective date of Public Act 96-1057), the corporate | 17 | | authorities of a non-home rule municipality may, until | 18 | | December 31, 2020, use the proceeds of the tax for expenditure | 19 | | on municipal operations, in addition to or in lieu of any | 20 | | expenditure on public infrastructure or for property tax | 21 | | relief. The tax imposed may not be more than 2% 1% and may be | 22 | | imposed only in
1/4% increments. The rate of this tax that may | 23 | | be imposed for municipal operations may not exceed 1%; | 24 | | therefore, notwithstanding any other provision of law, if the | 25 | | tax under this Section is imposed at a rate of more than 1%, |
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| 1 | | then, beginning with the first disbursement to occur on or | 2 | | after the effective date of the increase, the total amount | 3 | | that may be used for municipal operations may not exceed the | 4 | | total amount of the proceeds disbursed to the municipality | 5 | | under this Section, Section 8-11-1.3, and Section 8-11-1.5, | 6 | | multiplied by a fraction having a numerator of 1 and a | 7 | | denominator of the rate of tax. The tax may not be imposed on | 8 | | tangible personal property taxed at the 1% rate under the | 9 | | Service Occupation Tax Act (or at the 0% rate imposed under | 10 | | this amendatory Act of the 102nd General Assembly). Beginning | 11 | | December 1, 2019, this tax is not imposed on sales of aviation | 12 | | fuel unless the tax revenue is expended for airport-related | 13 | | purposes. If a municipality does not have an airport-related | 14 | | purpose to which it dedicates aviation fuel tax revenue, then | 15 | | aviation fuel is excluded from the tax. Each municipality must | 16 | | comply with the certification requirements for airport-related | 17 | | purposes under Section 2-22 of the Retailers' Occupation Tax | 18 | | Act. For purposes of this Section, "airport-related purposes" | 19 | | has the meaning ascribed in Section 6z-20.2 of the State | 20 | | Finance Act. This exclusion for aviation fuel only applies for | 21 | | so long as the revenue use requirements of 49 U.S.C. 47107(b) | 22 | | and 49 U.S.C. 47133 are binding on the municipality.
The tax | 23 | | imposed by a municipality
pursuant to this Section and all | 24 | | civil penalties that may be assessed as
an incident thereof | 25 | | shall be collected and enforced by the State
Department of | 26 | | Revenue. The certificate of registration which is issued
by |
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| 1 | | the Department to a retailer under the Retailers' Occupation | 2 | | Tax
Act or under the Service Occupation Tax Act shall permit
| 3 | | such registrant to engage in a business which is taxable under | 4 | | any
ordinance or resolution enacted pursuant to this Section | 5 | | without
registering separately with the Department under such | 6 | | ordinance or
resolution or under this Section. The Department | 7 | | shall have full power
to administer and enforce this Section; | 8 | | to collect all taxes and
penalties due hereunder; to dispose | 9 | | of taxes and penalties so collected
in the manner hereinafter | 10 | | provided, and to determine all rights to
credit memoranda | 11 | | arising on account of the erroneous payment of tax or
penalty | 12 | | hereunder. In the administration of, and compliance with, this
| 13 | | Section the Department and persons who are subject to this | 14 | | Section
shall have the same rights, remedies, privileges, | 15 | | immunities, powers and
duties, and be subject to the same | 16 | | conditions, restrictions, limitations,
penalties and | 17 | | definitions of terms, and employ the same modes of procedure,
| 18 | | as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in | 19 | | respect to
all provisions therein other than the State rate of | 20 | | tax), 4 (except that
the reference to the State shall be to the | 21 | | taxing municipality), 5, 7, 8
(except that the jurisdiction to | 22 | | which the tax shall be a debt to the
extent indicated in that | 23 | | Section 8 shall be the taxing municipality), 9
(except as to | 24 | | the disposition of taxes and penalties collected, and except
| 25 | | that the returned merchandise credit for this municipal tax | 26 | | may not be
taken against any State tax, and except that the |
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| 1 | | retailer's discount is not allowed for taxes paid on aviation | 2 | | fuel that are subject to the revenue use requirements of 49 | 3 | | U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except the | 4 | | reference therein to
Section 2b of the Retailers' Occupation | 5 | | Tax Act), 13 (except that any
reference to the State shall mean | 6 | | the taxing municipality), the first
paragraph of Section 15, | 7 | | 16, 17, 18, 19 and 20 of the Service Occupation
Tax Act and | 8 | | Section 3-7 of the Uniform Penalty and Interest Act, as fully
| 9 | | as if those provisions were set forth herein.
| 10 | | No municipality may impose a tax under this Section unless | 11 | | the municipality
also imposes a tax at the same rate under | 12 | | Section 8-11-1.3 of this Code.
| 13 | | Persons subject to any tax imposed pursuant to the | 14 | | authority granted
in this Section may reimburse themselves for | 15 | | their serviceman's tax
liability hereunder by separately | 16 | | stating such tax as an additional
charge, which charge may be | 17 | | stated in combination, in a single amount,
with State tax | 18 | | which servicemen are authorized to collect under the
Service | 19 | | Use Tax Act, pursuant to such bracket schedules as the
| 20 | | Department may prescribe.
| 21 | | Whenever the Department determines that a refund should be | 22 | | made under
this Section to a claimant instead of issuing | 23 | | credit memorandum, the
Department shall notify the State | 24 | | Comptroller, who shall cause the
order to be drawn for the | 25 | | amount specified, and to the person named,
in such | 26 | | notification from the Department. Such refund shall be paid by
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| 1 | | the State Treasurer out of the municipal retailers' occupation | 2 | | tax fund or the Local Government Aviation Trust Fund, as | 3 | | appropriate.
| 4 | | Except as otherwise provided in this paragraph, the | 5 | | Department shall forthwith pay over to the State Treasurer,
ex | 6 | | officio, as trustee, all taxes and penalties collected | 7 | | hereunder for deposit into the municipal retailers' occupation | 8 | | tax fund. Taxes and penalties collected on aviation fuel sold | 9 | | on or after December 1, 2019, shall be immediately paid over by | 10 | | the Department to the State Treasurer, ex officio, as trustee, | 11 | | for deposit into the Local Government Aviation Trust Fund. The | 12 | | Department shall only pay moneys into the Local Government | 13 | | Aviation Trust Fund under this Section for so long as the | 14 | | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | 15 | | 47133 are binding on the municipality. | 16 | | As soon as possible after the first day of each month, | 17 | | beginning January 1, 2011, upon certification of the | 18 | | Department of Revenue, the Comptroller shall order | 19 | | transferred, and the Treasurer shall transfer, to the STAR | 20 | | Bonds Revenue Fund the local sales tax increment, as defined | 21 | | in the Innovation Development and Economy Act, collected under | 22 | | this Section during the second preceding calendar month for | 23 | | sales within a STAR bond district. | 24 | | After the monthly transfer to the STAR Bonds Revenue Fund, | 25 | | on
or before the 25th day of each calendar month, the | 26 | | Department shall
prepare and certify to the Comptroller the |
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| 1 | | disbursement of stated sums
of money to named municipalities, | 2 | | the municipalities to be those from
which suppliers and | 3 | | servicemen have paid taxes or penalties hereunder to
the | 4 | | Department during the second preceding calendar month. The | 5 | | amount
to be paid to each municipality shall be the amount (not | 6 | | including credit
memoranda and not including taxes and | 7 | | penalties collected on aviation fuel sold on or after December | 8 | | 1, 2019) collected hereunder during the second preceding | 9 | | calendar
month by the Department, and not including an amount | 10 | | equal to the amount
of refunds made during the second | 11 | | preceding calendar month by the
Department on behalf of such | 12 | | municipality, and not including any amounts that are | 13 | | transferred to the STAR Bonds Revenue Fund, less 1.5% of the | 14 | | remainder, which the Department shall transfer into the Tax | 15 | | Compliance and Administration Fund. The Department, at the | 16 | | time of each monthly disbursement to the municipalities, shall | 17 | | prepare and certify to the State Comptroller the amount to be | 18 | | transferred into the Tax Compliance and Administration Fund | 19 | | under this Section. Within 10 days
after receipt, by the | 20 | | Comptroller, of the disbursement certification to
the | 21 | | municipalities, the General Revenue Fund, and the Tax | 22 | | Compliance and Administration Fund provided for in this
| 23 | | Section to be given to the Comptroller by the Department, the
| 24 | | Comptroller shall cause the orders to be drawn for the | 25 | | respective
amounts in accordance with the directions contained | 26 | | in such
certification.
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| 1 | | The Department of Revenue shall implement Public Act | 2 | | 91-649 so as to collect the tax on and after January 1, 2002.
| 3 | | Nothing in this Section shall be construed to authorize a
| 4 | | municipality to impose a tax upon the privilege of engaging in | 5 | | any
business which under the constitution of the United States | 6 | | may not be
made the subject of taxation by this State.
| 7 | | As used in this Section, "municipal" or "municipality" | 8 | | means or refers to
a city, village or incorporated town, | 9 | | including an incorporated town which
has superseded a civil | 10 | | township.
| 11 | | This Section shall be known and may be cited as the | 12 | | "Non-Home Rule Municipal
Service Occupation Tax Act".
| 13 | | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | 14 | | 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
| 15 | | (65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5)
| 16 | | Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The | 17 | | corporate
authorities of a non-home rule municipality may | 18 | | impose a
tax upon the privilege of using, in such | 19 | | municipality, any item of tangible
personal property which is | 20 | | purchased at retail from a retailer, and which is
titled or | 21 | | registered with an agency of this State's government, based on | 22 | | the selling price of such tangible personal
property, as | 23 | | "selling price" is defined in the Use Tax Act, for expenditure
| 24 | | on public infrastructure or for property tax relief or both as | 25 | | defined in
Section 8-11-1.2, if approved by
referendum as |
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| 1 | | provided in Section 8-11-1.1. If the tax is approved by | 2 | | referendum on or after the effective date of this amendatory | 3 | | Act of the 96th General Assembly, the corporate authorities of | 4 | | a non-home rule municipality may, until December 31, 2020, use | 5 | | the proceeds of the tax for expenditure on municipal | 6 | | operations, in addition to or in lieu of any expenditure on | 7 | | public infrastructure or for property tax relief. The tax | 8 | | imposed may not be more
than 2% 1% and may be imposed only in | 9 | | 1/4% increments. The rate of this tax that may be imposed for | 10 | | municipal operations may not exceed 1%; therefore, | 11 | | notwithstanding any other provision of law, if the tax under | 12 | | this Section is imposed at a rate of more than 1%, then, | 13 | | beginning with the first disbursement to occur on or after the | 14 | | effective date of the increase, the total amount that may be | 15 | | used for municipal operations may not exceed the total amount | 16 | | of the proceeds disbursed to the municipality under this | 17 | | Section, Section 8-11-1.3, and Section 8-11-1.4, multiplied by | 18 | | a fraction having a numerator of 1 and a denominator of the | 19 | | rate of tax. Such tax shall
be
collected from persons whose | 20 | | Illinois address for title or registration
purposes is given | 21 | | as being in such municipality. Such tax shall be
collected by | 22 | | the municipality imposing such tax.
A non-home rule | 23 | | municipality may not
impose and collect the tax prior to | 24 | | January 1, 2002.
| 25 | | This Section shall be known and may be cited as the | 26 | | "Non-Home Rule
Municipal Use Tax Act".
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| 1 | | (Source: P.A. 96-1057, eff. 7-14-10; 97-837, eff. 7-20-12.)
| 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law.
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