Full Text of HB1497 101st General Assembly
HB1497 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB1497 Introduced , by Rep. Sam Yingling SYNOPSIS AS INTRODUCED: | | 65 ILCS 5/8-11-1 | from Ch. 24, par. 8-11-1 |
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Amends the Home Rule Municipal Retailers' 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 8-11-1 as follows:
| 6 | | (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
| 7 | | Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax | 8 | | Act. The The
corporate authorities of a home rule municipality | 9 | | may
impose a tax upon all persons engaged in the business of | 10 | | selling tangible
personal property, other than an item of | 11 | | tangible personal property titled
or registered with an agency | 12 | | of this State's government, at retail in the
municipality on | 13 | | the gross receipts from these sales made in
the course of such | 14 | | business. If imposed, the tax shall only
be imposed in 1/4% | 15 | | increments. On and after September 1, 1991, this
additional tax | 16 | | may not be imposed on tangible personal property taxed at the | 17 | | 1% rate under the Retailers' Occupation Tax Act. The tax | 18 | | imposed
by a home rule municipality under this Section and all
| 19 | | civil penalties that may be assessed as an incident of the tax | 20 | | shall
be collected and enforced by the State Department of
| 21 | | Revenue. The certificate of registration that is issued by
the | 22 | | Department to a retailer under the Retailers' Occupation Tax | 23 | | Act
shall permit the retailer to engage in a business that is |
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| 1 | | taxable
under any ordinance or resolution enacted pursuant to
| 2 | | this Section without registering separately with the | 3 | | Department under such
ordinance or resolution or under this | 4 | | Section. The Department shall have
full power to administer and | 5 | | enforce this Section; to collect all taxes and
penalties due | 6 | | hereunder; to dispose of taxes and penalties so collected in
| 7 | | the manner hereinafter provided; and to determine all rights to
| 8 | | credit memoranda arising on account of the erroneous payment of | 9 | | tax or
penalty hereunder. In the administration of, and | 10 | | compliance with, this
Section the Department and persons who | 11 | | are subject to this Section shall
have the same rights, | 12 | | remedies, privileges, immunities, powers and duties,
and be | 13 | | subject to the same conditions, restrictions, limitations, | 14 | | penalties
and definitions of terms, and employ the same modes | 15 | | of procedure, as are
prescribed in Sections 1, 1a, 1d, 1e, 1f, | 16 | | 1i, 1j, 1k, 1m, 1n, 2 through
2-65 (in
respect to all | 17 | | provisions therein other than the State rate of tax), 2c, 3
| 18 | | (except as to the disposition of taxes and penalties | 19 | | collected), 4, 5, 5a,
5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, | 20 | | 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11,
12 and 13 of the | 21 | | Retailers' Occupation Tax Act and Section 3-7 of the
Uniform | 22 | | Penalty and Interest Act, as fully as if those provisions were
| 23 | | set forth herein.
| 24 | | No tax may be imposed by a home rule municipality under | 25 | | this Section
unless the municipality also imposes a tax at the | 26 | | same rate under Section
8-11-5 of this Act.
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| 1 | | Persons subject to any tax imposed under the authority | 2 | | granted in this
Section may reimburse themselves for their | 3 | | seller's tax liability hereunder
by separately stating that tax | 4 | | as an additional charge, which charge may be
stated in | 5 | | combination, in a single amount, with State tax which sellers | 6 | | are
required to collect under the Use Tax Act, pursuant to such | 7 | | bracket
schedules as the Department may prescribe.
| 8 | | Whenever the Department determines that a refund should be | 9 | | made under
this Section to a claimant instead of issuing a | 10 | | credit memorandum, the
Department shall notify the State | 11 | | Comptroller, who shall cause the
order to be drawn for the | 12 | | amount specified and to the person named
in the notification | 13 | | from the Department. The refund shall be paid by the
State | 14 | | Treasurer out of the home rule municipal retailers' occupation | 15 | | tax fund.
| 16 | | The Department shall immediately pay over to the State
| 17 | | Treasurer, ex officio, as trustee, all taxes and penalties | 18 | | collected
hereunder. | 19 | | As soon as possible after the first day of each month, | 20 | | beginning January 1, 2011, upon certification of the Department | 21 | | of Revenue, the Comptroller shall order transferred, and the | 22 | | Treasurer shall transfer, to the STAR Bonds Revenue Fund the | 23 | | local sales tax increment, as defined in the Innovation | 24 | | Development and Economy Act, collected under this Section | 25 | | during the second preceding calendar month for sales within a | 26 | | STAR bond district. |
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| 1 | | After the monthly transfer to the STAR Bonds Revenue Fund, | 2 | | on or before the 25th day of each calendar month, the
| 3 | | Department shall prepare and certify to the Comptroller the | 4 | | disbursement of
stated sums of money to named municipalities, | 5 | | the municipalities to be
those from which retailers have paid | 6 | | taxes or penalties hereunder to the
Department during the | 7 | | second preceding calendar month. The amount to be
paid to each | 8 | | municipality shall be the amount (not including credit
| 9 | | memoranda) collected hereunder during the second preceding | 10 | | calendar month
by the Department plus an amount the Department | 11 | | determines is necessary to
offset any amounts that were | 12 | | erroneously paid to a different
taxing body, and not including | 13 | | an amount equal to the amount of refunds
made during the second | 14 | | preceding calendar month by the Department on
behalf of such | 15 | | municipality, and not including any amount that the Department
| 16 | | determines is necessary to offset any amounts that were payable | 17 | | to a
different taxing body but were erroneously paid to the | 18 | | municipality, and not including any amounts that are | 19 | | transferred to the STAR Bonds Revenue Fund, less 1.5% of the | 20 | | remainder, which the Department shall transfer into the Tax | 21 | | Compliance and Administration Fund. The Department, at the time | 22 | | of each monthly disbursement to the municipalities, shall | 23 | | prepare and certify to the State Comptroller the amount to be | 24 | | transferred into the Tax Compliance and Administration Fund | 25 | | under this Section. Within
10 days after receipt by the | 26 | | Comptroller of the disbursement certification
to the |
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| 1 | | municipalities and the Tax Compliance and Administration Fund | 2 | | provided for in this Section to be given to the
Comptroller by | 3 | | the Department, the Comptroller shall cause the orders to be
| 4 | | drawn for the respective amounts in accordance with the | 5 | | directions
contained in the certification.
| 6 | | In addition to the disbursement required by the preceding | 7 | | paragraph and
in order to mitigate delays caused by | 8 | | distribution procedures, an
allocation shall, if requested, be | 9 | | made within 10 days after January 14,
1991, and in November of | 10 | | 1991 and each year thereafter, to each
municipality that | 11 | | received more than $500,000 during the preceding fiscal
year, | 12 | | (July 1 through June 30) whether collected by the municipality | 13 | | or
disbursed by the Department as required by this Section. | 14 | | Within 10 days
after January 14, 1991, participating | 15 | | municipalities shall notify the
Department in writing of their | 16 | | intent to participate. In addition, for the
initial | 17 | | distribution, participating municipalities shall certify to | 18 | | the
Department the amounts collected by the municipality for | 19 | | each month under
its home rule occupation and service | 20 | | occupation tax during the period July
1, 1989 through June 30, | 21 | | 1990. The allocation within 10 days after January
14, 1991, | 22 | | shall be in an amount equal to the monthly average of these
| 23 | | amounts, excluding the 2 months of highest receipts. The | 24 | | monthly average
for the period of July 1, 1990 through June 30, | 25 | | 1991 will be determined as
follows: the amounts collected by | 26 | | the municipality under its home rule
occupation and service |
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| 1 | | occupation tax during the period of July 1, 1990
through | 2 | | September 30, 1990, plus amounts collected by the Department | 3 | | and
paid to such municipality through June 30, 1991, excluding | 4 | | the 2 months of
highest receipts. The monthly average for each | 5 | | subsequent period of July 1
through June 30 shall be an amount | 6 | | equal to the monthly distribution made
to each such | 7 | | municipality under the preceding paragraph during this period,
| 8 | | excluding the 2 months of highest receipts. The distribution | 9 | | made in
November 1991 and each year thereafter under this | 10 | | paragraph and the
preceding paragraph shall be reduced by the | 11 | | amount allocated and disbursed
under this paragraph in the | 12 | | preceding period of July 1 through June 30.
The Department | 13 | | shall prepare and certify to the Comptroller for
disbursement | 14 | | the allocations made in accordance with this paragraph.
| 15 | | For the purpose of determining the local governmental unit | 16 | | whose tax
is applicable, a retail sale by a producer of coal or | 17 | | other mineral
mined in Illinois is a sale at retail at the | 18 | | place where the coal or
other mineral mined in Illinois is | 19 | | extracted from the earth. This
paragraph does not apply to coal | 20 | | or other mineral when it is delivered
or shipped by the seller | 21 | | to the purchaser at a point outside Illinois so
that the sale | 22 | | is exempt under the United States Constitution as a sale in
| 23 | | interstate or foreign commerce.
| 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 the
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 the
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 | | When certifying the amount of a monthly disbursement to a | 14 | | municipality
under this Section, the Department shall increase | 15 | | or decrease the amount by
an amount necessary to offset any | 16 | | misallocation of previous disbursements.
The offset amount | 17 | | shall be the amount erroneously disbursed
within the previous 6 | 18 | | months from the time a misallocation is discovered.
| 19 | | Any unobligated balance remaining in the Municipal | 20 | | Retailers' Occupation
Tax Fund on December 31, 1989, which fund | 21 | | was abolished by Public Act
85-1135, and all receipts of | 22 | | municipal tax as a result of audits of
liability periods prior | 23 | | to January 1, 1990, shall be paid into the Local
Government Tax | 24 | | Fund for distribution as provided by this Section prior to
the | 25 | | enactment of Public Act 85-1135. All receipts of municipal tax | 26 | | as a
result of an assessment not arising from an audit, for |
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| 1 | | liability periods
prior to January 1, 1990, shall be paid into | 2 | | the Local Government Tax Fund
for distribution before July 1, | 3 | | 1990, as provided by this Section prior to
the enactment of | 4 | | Public Act 85-1135; and on and after July 1,
1990, all such | 5 | | receipts shall be distributed as provided in Section
6z-18 of | 6 | | the State Finance Act.
| 7 | | As used in this Section, "municipal" and "municipality" | 8 | | means a city,
village or incorporated town, including an | 9 | | incorporated town that has
superseded a civil township.
| 10 | | This Section shall be known and may be cited as the Home | 11 | | Rule Municipal
Retailers' Occupation Tax Act.
| 12 | | (Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17; | 13 | | 100-587, eff. 6-4-18; 100-1171, eff. 1-4-19; revised 1-9-19.)
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