Illinois General Assembly - Illinois Compiled Statutes

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65 ILCS 5/8-11-7

(65 ILCS 5/8-11-7) (from Ch. 24, par. 8-11-7)

Sec. 8-11-7.

The corporate authorities of a municipality may impose
a tax upon all persons engaged in the business of renting automobiles in
the municipality at the rate of not to exceed 1% of the gross receipts from
such business.  The tax imposed by a municipality pursuant to this Section
and all civil penalties that may be assessed as an incident thereof shall
be collected and enforced by the State Department of Revenue. The certificate
of registration which is issued by the Department to a retailer under the
Retailers' Occupation Tax Act or under the Automobile Renting Occupation and Use Tax
Act shall permit such
person to engage in a
business which is taxable under any ordinance or resolution enacted pursuant
to this Section without registering separately with the Department under
such ordinance or resolution or under this Section.  The Department shall
have full power to administer and enforce this Section; to collect all taxes
and penalties due hereunder; to dispose of taxes and penalties so collected
in the manner hereinafter provided; and to determine all rights to credit
memoranda, arising on account of the erroneous payment of tax or penalty
hereunder.  In the administration of, and compliance with, this Section,
the Department and persons who are subject to this Section shall have the
same rights, remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure, as are prescribed
in Sections 2 and 3 (in respect to all provisions therein other than the
State rate of tax; and with relation to the provisions of the "Retailers'
Occupation Tax" referred to therein, except as to the disposition of taxes
and penalties collected, and except for the provision allowing retailers
a deduction from the tax to cover certain costs, and except that credit
memoranda issued hereunder may not be used to discharge any State tax
liability) of the Automobile Renting Occupation and Use Tax Act, as fully
as if those provisions were set forth herein.

Persons subject to any tax imposed pursuant to the authority granted in
this Section may reimburse themselves for their tax liability hereunder
by separately stating such tax as an additional charge, which charge may
be stated in combination, in a single amount, with State tax which sellers
are required to collect under the Automobile Renting Occupation and
Use Tax Act pursuant to such bracket schedules as the Department may
prescribe.

Whenever the Department determines that a refund should be made under this
Section to a claimant instead of issuing a credit memorandum, the Department
shall notify the State Comptroller, who shall cause the order to be drawn
for the amount specified, and to the person named, in such notification
from the Department.  Such refund shall be paid by the State Treasurer out
of the municipal automobile renting tax fund.

The Department shall forthwith pay over to the State Treasurer, ex-officio,
as trustee, all taxes and penalties collected hereunder.  On or before the
25th day of each calendar month, the Department shall prepare and certify
to the Comptroller the disbursement of stated sums of money to named
municipalities, the municipalities to be those from which rentors have paid
taxes or penalties hereunder to the Department during the second preceding
calendar month.  The amount to be paid to each municipality shall be the
amount (not including credit memoranda) collected hereunder during the
second preceding calendar month by the Department, and not including an
amount equal to the amount of refunds made during the second preceding
calendar month by the Department on behalf of such municipality, less 1.6%
of such balance, which sum shall be retained by the State Treasurer to
cover the costs incurred by the Department in administering and enforcing
this Section as provided herein.  The Department at the time of each
monthly disbursement to the municipalities shall prepare and certify to the
Comptroller the amount, so retained by the State Treasurer, to be paid into
the General Revenue Fund of the State Treasury.  Within 10 days after
receipt, by the Comptroller, of the disbursement certification to the
municipalities and the General Revenue Fund, provided for in this
Section to be given to the Comptroller by the Department, the Comptroller
shall cause the orders to be drawn for the respective amounts
in accordance with the directions contained in such certification.

Nothing in this Section shall be construed to authorize a municipality
to impose a tax upon the privilege of engaging in any business which under
the Constitution of the United States may not be made the subject of taxation
by this State.

An ordinance or resolution imposing a tax hereunder or effecting a change
in the rate thereof shall be effective on the first day of the calendar
month next following publication as provided in Section 1-2-4.  The corporate
authorities of any municipality which levies a tax authorized by this Section
shall transmit to the Department of Revenue on or not later than 5 days
after publication a certified copy of the ordinance or resolution imposing
such tax whereupon the Department of Revenue shall proceed to administer
and enforce this Section on behalf of such municipality as of the effective
date of the ordinance or resolution.  Upon a change in rate of a tax levied
hereunder, or upon the discontinuance of the tax, the corporate authorities
of the municipality shall on or not later than 5 days after publication
of the ordinance or  resolution discontinuing the tax or effecting a change
in rate transmit to the Department of Revenue a certified copy of the
ordinance or resolution effecting such change or discontinuance.

The Department of Revenue must upon the request of the municipal clerk,
city council or village board of trustees submit to a city, village or
incorporated town a list of those persons who are registered with the
Department to pay automobile renting occupation tax within that
governmental unit.  This list shall contain only the names of persons who
have paid the tax and not the amount of tax paid by such person.

As used in this Section, "municipal" and "municipality" means a city, village
or incorporated town, including an incorporated town which has superseded
a civil township.

This Section shall be known and may be cited as the "Municipal Automobile
Renting Occupation Tax Act".

(Source: P.A. 86-1475.)