Full Text of HB0944 101st General Assembly
HB0944 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 HB0944 Introduced , by Rep. Michael J. Madigan SYNOPSIS AS INTRODUCED: | | 65 ILCS 5/8-11-1.3 | from Ch. 24, par. 8-11-1.3 |
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Amends the Non-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 8-11-1.3 as follows:
| 6 | | (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
| 7 | | Sec. 8-11-1.3. Non-Home Rule Municipal Retailers' | 8 | | Occupation Tax Act. The
The corporate authorities of a non-home | 9 | | rule municipality may impose
a tax upon all persons engaged in | 10 | | the business of selling tangible
personal property, other than | 11 | | on an item of tangible personal property
which is titled and | 12 | | registered by an agency of this State's Government,
at retail | 13 | | in the municipality for expenditure on
public infrastructure or | 14 | | for property tax relief or both as defined in
Section 8-11-1.2 | 15 | | if approved by
referendum as provided in Section 8-11-1.1, of | 16 | | the gross receipts from such
sales made in the course of such | 17 | | business.
If the tax is approved by referendum on or after July | 18 | | 14, 2010 (the effective date of Public Act 96-1057), the | 19 | | corporate authorities of a non-home rule municipality may, | 20 | | until December 31, 2020, use the proceeds of the tax for | 21 | | expenditure on municipal operations, in addition to or in lieu | 22 | | of any expenditure on public infrastructure or for property tax | 23 | | relief. The tax imposed may not be more than 1% and may be |
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| 1 | | imposed only in
1/4% increments. The tax may not be imposed on | 2 | | the sale of food for human
consumption that is
to be consumed | 3 | | off the premises where it is sold (other than alcoholic
| 4 | | beverages, soft drinks, and food that has been prepared for | 5 | | immediate
consumption) and prescription and nonprescription | 6 | | medicines, drugs, medical
appliances, and insulin, urine | 7 | | testing materials, syringes, and needles used by
diabetics.
The | 8 | | tax imposed by a
municipality pursuant to this Section and all | 9 | | civil penalties that may be
assessed as an incident thereof | 10 | | shall be collected and enforced by the
State Department of | 11 | | Revenue. The certificate of registration which is
issued by the | 12 | | Department to a retailer under the Retailers' Occupation Tax
| 13 | | Act shall permit such retailer to engage in a business which is | 14 | | taxable
under any ordinance or resolution enacted pursuant to
| 15 | | this Section without registering separately with the | 16 | | Department under
such ordinance or resolution or under this | 17 | | Section. The Department
shall have full power to administer and | 18 | | enforce this Section; to collect
all taxes and penalties due | 19 | | hereunder; to dispose of taxes and penalties
so collected in | 20 | | the manner hereinafter provided, and to determine all
rights to | 21 | | credit memoranda, arising on account of the erroneous payment
| 22 | | of tax or penalty hereunder. In the administration of, and | 23 | | compliance
with, this Section, the Department and persons who | 24 | | are subject to this
Section shall have the same rights, | 25 | | remedies, privileges, immunities,
powers and duties, and be | 26 | | subject to the same conditions, restrictions,
limitations, |
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| 1 | | penalties and definitions of terms, and employ the same
modes | 2 | | of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d, | 3 | | 1e,
1f, 1i, 1j, 2 through 2-65 (in respect to all provisions | 4 | | therein other than
the State rate of tax), 2c, 3 (except as to | 5 | | the disposition of taxes and
penalties collected), 4, 5, 5a, | 6 | | 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
6, 6a, 6b, 6c, 6d, | 7 | | 7, 8, 9, 10, 11, 12 and 13 of the Retailers'
Occupation Tax Act | 8 | | and Section 3-7 of the Uniform Penalty and Interest
Act as | 9 | | fully 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 8-11-1.4 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 seller's tax
liability hereunder by separately stating | 16 | | such tax as an additional
charge, which charge may be stated in | 17 | | combination, in a single amount,
with State tax which sellers | 18 | | are required to collect under the Use Tax
Act, pursuant to such | 19 | | bracket schedules as the Department may prescribe.
| 20 | | Whenever the Department determines that a refund should be | 21 | | made under
this Section to a claimant instead of issuing a | 22 | | credit memorandum, the
Department shall notify the State | 23 | | Comptroller, who shall cause the
order to be drawn for the | 24 | | amount specified, and to the person named,
in such notification | 25 | | from the Department. Such refund shall be paid by
the State | 26 | | Treasurer out of the non-home rule municipal retailers'
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| 1 | | occupation tax fund.
| 2 | | The Department shall forthwith pay over to the State | 3 | | Treasurer, ex
officio, as trustee, all taxes and penalties | 4 | | collected hereunder. | 5 | | As soon as possible after the first day of each month, | 6 | | beginning January 1, 2011, upon certification of the Department | 7 | | of Revenue, the Comptroller shall order transferred, and the | 8 | | Treasurer shall transfer, to the STAR Bonds Revenue Fund the | 9 | | local sales tax increment, as defined in the Innovation | 10 | | Development and Economy Act, collected under this Section | 11 | | during the second preceding calendar month for sales within a | 12 | | STAR bond district. | 13 | | After the monthly transfer to the STAR Bonds Revenue Fund, | 14 | | on or
before the 25th day of each calendar month, the | 15 | | Department shall
prepare and certify to the Comptroller the | 16 | | disbursement of stated sums
of money to named municipalities, | 17 | | the municipalities to be those from
which retailers have paid | 18 | | taxes or penalties hereunder to the Department
during the | 19 | | second preceding calendar month. The amount to be paid to each
| 20 | | municipality shall be the amount (not including credit | 21 | | memoranda) collected
hereunder during the second preceding | 22 | | calendar month by the Department plus
an amount the Department | 23 | | determines is necessary to offset any amounts
which were | 24 | | erroneously paid to a different taxing body, and not including
| 25 | | an amount equal to the amount of refunds made during the second | 26 | | preceding
calendar month by the Department on behalf of such |
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| 1 | | municipality, and not
including any amount which the Department | 2 | | determines is necessary to offset
any amounts which were | 3 | | payable to a different taxing body but were
erroneously paid to | 4 | | the municipality, and not including any amounts that are | 5 | | transferred to the STAR Bonds Revenue Fund, less 1.5% of the | 6 | | remainder, which the Department shall transfer into the Tax | 7 | | Compliance and Administration Fund. The Department, at the time | 8 | | of each monthly disbursement to the municipalities, shall | 9 | | prepare and certify to the State Comptroller the amount to be | 10 | | transferred into the Tax Compliance and Administration Fund | 11 | | under this Section. Within 10 days after receipt, by the
| 12 | | Comptroller, of the disbursement certification to the | 13 | | municipalities and the Tax Compliance and Administration Fund
| 14 | | provided for in this Section to be given to the Comptroller by | 15 | | the
Department, the Comptroller shall cause the orders to be | 16 | | drawn for the
respective amounts in accordance with the | 17 | | directions contained in such
certification.
| 18 | | For the purpose of determining the local governmental unit | 19 | | whose tax
is applicable, a retail sale, by a producer of coal | 20 | | or other mineral
mined in Illinois, is a sale at retail at the | 21 | | place where the coal or
other mineral mined in Illinois is | 22 | | extracted from the earth. This
paragraph does not apply to coal | 23 | | or other mineral when it is delivered
or shipped by the seller | 24 | | to the purchaser at a point outside Illinois so
that the sale | 25 | | is exempt under the Federal Constitution as a sale in
| 26 | | interstate or foreign commerce.
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| 1 | | Nothing in this Section shall be construed to authorize a
| 2 | | municipality to impose a tax upon the privilege of engaging in | 3 | | any
business which under the constitution of the United States | 4 | | may not be
made the subject of taxation by this State.
| 5 | | When certifying the amount of a monthly disbursement to a | 6 | | municipality
under this Section, the Department shall increase | 7 | | or decrease such amount
by an amount necessary to offset any | 8 | | misallocation of previous
disbursements. The offset amount | 9 | | shall be the amount erroneously disbursed
within the previous 6 | 10 | | months from the time a misallocation is discovered.
| 11 | | The Department of Revenue shall implement this amendatory | 12 | | Act of the 91st
General Assembly so as to collect the tax on | 13 | | and after January 1, 2002.
| 14 | | As used in this Section, "municipal" and "municipality" | 15 | | means a city,
village or incorporated town, including an | 16 | | incorporated town which has
superseded a civil township.
| 17 | | This Section shall be known and may be cited as the | 18 | | "Non-Home Rule
Municipal Retailers' Occupation Tax Act".
| 19 | | (Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17; | 20 | | 100-587, eff. 6-4-18.)
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