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90_HB0318
30 ILCS 105/5.449 new
30 ILCS 105/5.450 new
65 ILCS 5/8-11-21 new
65 ILCS 5/8-11-22 new
65 ILCS 5/8-11-23 new
65 ILCS 5/8-11-24 new
65 ILCS 5/8-11-25 new
Amends the State Finance Act and the Illinois Municipal
Code. Allows the corporate authorities of non-home rule
municipalities, upon approval of the electors, to impose, by
ordinance or resolution, a retailers' occupation tax, service
occupation tax, and use tax at a rate of up to 1% in 1/4 of
1% increments for expenditure on capital projects. Allows
the municipality to discontinue the tax by ordinance or
resolution. Requires the ordinance or resolution to be filed
with the Department of Revenue on or before the first day of
July and the Department to administer and enforce the
additional tax, or discontinue the tax, as of the first day
of October following the adoption and filing.
LRB9000660DNsbC
LRB9000660DNsbC
1 AN ACT in relation to non-home rule municipality
2 occupation and use taxes.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The State Finance Act is amended by adding
6 Sections 5.449, 5.450, and 5.451 as follows:
7 (30 ILCS 105/5.449 new)
8 Sec. 5.449. The Non-Home Rule Capital Projects Municipal
9 Retailers' Occupation Tax Fund.
10 (30 ILCS 105/5.450 new)
11 Sec. 5.450. The Non-Home Rule Capital Projects Municipal
12 Service Occupation Tax Fund.
13 Section 10. The Illinois Municipal Code is amended by
14 adding Sections 8-11-21, 8-11-22, 8-11-23, 8-11-24, and
15 8-11-25 as follows:
16 (65 ILCS 5/8-11-21 new)
17 Sec. 8-11-21. Capital projects use and occupation taxes.
18 (a) The corporate authorities of a non-home rule
19 municipality may, upon approval of the electors of the
20 municipality pursuant to subsection (b) of this Section,
21 impose, by ordinance or resolution, the tax authorized in
22 Sections 8-11-23, 8-11-24 and 8-11-25 of this Act.
23 (b) The corporate authorities of the municipality may,
24 by ordinance or resolution, call for the submission to the
25 electors of the municipality the question of whether the
26 municipality shall impose the tax. That question shall be
27 certified by the municipal clerk to the election authority in
28 accordance with Section 28-5 of the Election Code and shall
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1 be in a form in accordance with Section 16-7 of the Election
2 Code.
3 If a majority of the electors in the municipality voting
4 upon the question vote in the affirmative, the tax shall be
5 imposed.
6 An ordinance or resolution imposing the tax, or
7 discontinuing the tax, shall be adopted and a certified copy
8 of the ordinance or resolution, together with a certification
9 that the ordinance or resolution received referendum approval
10 in the case of the imposition of the tax, shall be filed with
11 the Department of Revenue on or before the first day of July,
12 whereupon the Department shall proceed to administer and
13 enforce the additional tax or to discontinue the tax, as the
14 case may be, as of the first day of October next following
15 the adoption and filing.
16 (65 ILCS 5/8-11-22 new)
17 Sec. 8-11-22. Definition. As used in Sections 8-11-23,
18 8-11-24 and 8-11-25 of this Act, "capital projects" includes
19 but is not limited to municipal roads and streets, access
20 roads, bridges, and sidewalks; waste disposal systems; and
21 water and sewer line extensions, water distribution and
22 purification facilities, storm water drainage and retention
23 facilities, sewage treatment facilities, and the construction
24 of, purchases of, expansion of, or improvement to municipal
25 owned property. "Capital projects" includes equipment
26 necessary to conduct and carry out capital projects.
27 (65 ILCS 5/8-11-23 new)
28 Sec. 8-11-23. Non-home rule capital projects municipal
29 retailers' occupation tax. The corporate authorities of a
30 non-home rule municipality may impose a tax upon all persons
31 engaged in the business of selling tangible personal
32 property, other than on an item of tangible personal property
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1 that is titled and registered by an agency of this State's
2 government, at retail in the municipality at a rate of up to
3 1% in 1/4 of 1% increments for expenditure on capital
4 projects as defined in Section 8-11-22 if approved by
5 referendum as provided in Section 8-11-21, of the gross
6 receipts from the sales made in the course of such business.
7 This additional tax may not be imposed on the sales of food
8 for human consumption that is to be consumed off the premises
9 where it is sold (other than alcoholic beverages, soft
10 drinks, and food that has been prepared for immediate
11 consumption) and prescription and nonprescription medicines,
12 drugs, medical appliances and insulin, urine testing
13 materials, syringes, and needles used by diabetics. The tax
14 imposed by a municipality under this Section and all civil
15 penalties that may be assessed as an incident to the
16 imposition of the tax shall be collected and enforced by the
17 State Department of Revenue. The certificate of registration
18 that is issued by the Department to a retailer under the
19 Retailers' Occupation Tax Act shall permit that retailer to
20 engage in a business that is taxable under any ordinance or
21 resolution enacted under this Section without registering
22 separately with the Department under the ordinance or
23 resolution or under this Section. The Department shall have
24 full power to administer and enforce this Section; to collect
25 all taxes and penalties due under this Section; to dispose of
26 taxes and penalties so collected in the manner hereinafter
27 provided, and to determine all rights to credit memoranda,
28 arising on account of the erroneous payment of tax or penalty
29 under this Section. In the administration of, and compliance
30 with, this Section, the Department and persons who are
31 subject to this Section shall have the same rights, remedies,
32 privileges, immunities, powers, and duties, and be subject to
33 the same conditions, restrictions, limitations, penalties,
34 and definitions of terms, and employ the same modes of
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1 procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
2 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
3 therein other than the State rate of tax), 2c, 3 (except as
4 to the disposition of taxes and penalties collected), 4, 5,
5 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b,
6 6c, 7, 8, 9, 10, 11, 12, and 13 of the Retailers' Occupation
7 Tax Act and Section 3-7 of the Uniform Penalty and Interest
8 Act as fully as if those provisions were set forth in this
9 Section.
10 Persons subject to any tax imposed under the authority
11 granted in this Section may reimburse themselves for their
12 seller's tax liability under this Section by separately
13 stating the tax as an additional charge, which charge may be
14 stated in combination, in a single amount, with State tax
15 that sellers are required to collect under the Use Tax Act,
16 pursuant to such bracket schedules as the Department may
17 prescribe.
18 Whenever the Department determines that a refund should
19 be made under this Section to a claimant instead of issuing a
20 credit memorandum, the Department shall notify the State
21 Comptroller, who shall cause the order to be drawn for the
22 amount specified, and to the person named, in the
23 notification from the Department. The refund shall be paid
24 by the State Treasurer out of the Non-Home Rule Capital
25 Projects Municipal Retailers' Occupation Tax Fund.
26 The Department shall forthwith pay over to the State
27 Treasurer, ex officio, as trustee, all taxes and penalties
28 collected under this Section. On or before the 25th day of
29 each calendar month, the Department shall prepare and certify
30 to the Comptroller the disbursement of stated sums of money
31 to named municipalities, the municipalities to be those from
32 which retailers have paid taxes or penalties under this
33 Section to the Department during the second preceding
34 calendar month. The amount to be paid to each municipality
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1 shall be the amount (not including credit memoranda)
2 collected under this Section during the second preceding
3 calendar month by the Department plus an amount the
4 Department determines is necessary to offset any amounts that
5 were erroneously paid to a different taxing body, and not
6 including an amount equal to the amount of refunds made
7 during the second preceding calendar month by the Department
8 on behalf of the municipality, and not including any amount
9 that the Department determines is necessary to offset any
10 amounts that were payable to a different taxing body but were
11 erroneously paid to the municipality. Within 10 days after
12 receipt, by the Comptroller, of the disbursement
13 certification to the municipalities, provided for in this
14 Section to be given to the Comptroller by the Department, the
15 Comptroller shall cause the orders to be drawn for the
16 respective amounts in accordance with the directions
17 contained in the certification.
18 For the purpose of determining the local governmental
19 unit whose tax is applicable, a retail sale, by a producer of
20 coal or other mineral mined in Illinois, is a sale at retail
21 at the place where the coal or other mineral mined in
22 Illinois is extracted from the earth. This paragraph does
23 not apply to coal or other mineral when it is delivered or
24 shipped by the seller to the purchaser at a point outside
25 Illinois so that the sale is exempt under the Federal
26 Constitution as a sale in interstate or foreign commerce.
27 Nothing in this Section shall be construed to authorize a
28 municipality to impose a tax upon the privilege of engaging
29 in any business that under the Constitution of the United
30 States may not be made the subject of taxation by this State.
31 When certifying the amount of a monthly disbursement to a
32 municipality under this Section, the Department shall
33 increase or decrease the amount by an amount necessary to
34 offset any misallocation of previous disbursements. The
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1 offset amount shall be the amount erroneously disbursed
2 within the previous 6 months from the time a misallocation is
3 discovered.
4 As used in this Section, "municipal" and "municipality"
5 means a city, village or incorporated town, including an
6 incorporated town that has superseded a civil township.
7 This Section may be cited as the "Non-Home Rule Capital
8 Projects Municipal Retailers' Occupation Tax Act".
9 (65 ILCS 5/8-11-24 new)
10 Sec. 8-11-24. Non-home rule capital projects municipal
11 service occupation tax. The corporate authorities of a
12 non-home rule municipality may impose a tax upon all persons
13 engaged, in the municipality, in the business of making sales
14 of service at a rate of up to 1% in 1/4 of 1% increments for
15 expenditure on capital projects as defined in Section 8-11-22
16 if approved by referendum as provided in Section 8-11-21, of
17 the selling price of all tangible personal property
18 transferred by the servicemen either in the form of tangible
19 personal property or in the form of real estate as an
20 incident to a sale of service. This additional tax may not be
21 imposed on the sales of food for human consumption that is to
22 be consumed off the premises where it is sold (other than
23 alcoholic beverages, soft drinks, and food that has been
24 prepared for immediate consumption) and prescription and
25 nonprescription medicines, drugs, medical appliances and
26 insulin, urine testing materials, syringes, and needles used
27 by diabetics. The tax imposed by a municipality under this
28 Section and all civil penalties that may be assessed as an
29 incident to the imposition of the tax shall be collected and
30 enforced by the State Department of Revenue. The certificate
31 of registration that is issued by the Department to a
32 retailer under the Retailers' Occupation Tax Act or under the
33 Service Occupation Tax Act shall permit the registrant to
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1 engage in a business that is taxable under any ordinance or
2 resolution enacted under this Section without registering
3 separately with the Department under the ordinance or
4 resolution or under this Section. The Department shall have
5 full power to administer and enforce this Section; to collect
6 all taxes and penalties due under this Section; to dispose of
7 taxes and penalties so collected in the manner hereinafter
8 provided, and to determine all rights to credit memoranda
9 arising on account of the erroneous payment of tax or penalty
10 under this Section. In the administration of, and compliance
11 with, this Section the Department and persons who are subject
12 to this Section shall have the same rights, remedies,
13 privileges, immunities, powers, and duties, and be subject to
14 the same conditions, restrictions, limitations, penalties,
15 and definitions of terms, and employ the same modes of
16 procedure, as are prescribed in Sections 1a-1, 2, 2a, 3
17 through 3-50 (in respect to all provisions therein other than
18 the State rate of tax), 4 (except that the reference to the
19 State shall be to the taxing municipality), 5, 7, 8 (except
20 that the jurisdiction to which the tax shall be a debt to the
21 extent indicated in that Section 8 shall be the taxing
22 municipality), 9 (except as to the disposition of taxes and
23 penalties collected, and except that the returned merchandise
24 credit for this municipal tax may not be taken against any
25 State tax), 10, 11, 12 (except the reference therein to
26 Section 2b of the Retailers' Occupation Tax Act), 13 (except
27 that any reference to the State shall mean the taxing
28 municipality), the first paragraph of Section 15, 16, 17, 18,
29 19, and 20 of the Service Occupation Tax Act and Section 3-7
30 of the Uniform Penalty and Interest Act, as fully as if those
31 provisions were set forth in this Section.
32 Persons subject to any tax imposed under the authority
33 granted in this Section may reimburse themselves for their
34 serviceman's tax liability under this Section by separately
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1 stating the tax as an additional charge, which charge may be
2 stated in combination, in a single amount, with State tax
3 which servicemen are authorized to collect under the Service
4 Use Tax Act, pursuant to such bracket schedules as the
5 Department may prescribe.
6 Whenever the Department determines that a refund should
7 be made under this Section to a claimant instead of issuing
8 credit memorandum, the Department shall notify the State
9 Comptroller, who shall cause the order to be drawn for the
10 amount specified, and to the person named, in the
11 notification from the Department. The refund shall be paid by
12 the State Treasurer out of the Non-Home Rule Capital Projects
13 Municipal Service Occupation Tax Fund.
14 The Department shall forthwith pay over to the State
15 Treasurer, ex officio, as trustee, all taxes and penalties
16 collected under this Section. On or before the 25th day of
17 each calendar month, the Department shall prepare and certify
18 to the Comptroller the disbursement of stated sums of money
19 to named municipalities, the municipalities to be those from
20 which suppliers and servicemen have paid taxes or penalties
21 under this Section to the Department during the second
22 preceding calendar month. The amount to be paid to each
23 municipality shall be the amount (not including credit
24 memoranda) collected under this Section during the second
25 preceding calendar month by the Department, and not including
26 an amount equal to the amount of refunds made during the
27 second preceding calendar month by the Department on behalf
28 of the municipality. Within 10 days after receipt, by the
29 Comptroller, of the disbursement certification to the
30 municipalities and the General Revenue Fund, provided for in
31 this Section to be given to the Comptroller by the
32 Department, the Comptroller shall cause the orders to be
33 drawn for the respective amounts in accordance with the
34 directions contained in the certification.
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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
3 in any business that under the Constitution of the United
4 States may not be made the subject of taxation by this State.
5 As used in this Section, "municipal" or "municipality"
6 means or refers to a city, village or incorporated town,
7 including an incorporated town that has superseded a civil
8 township.
9 This Section may be cited as the "Non-Home Rule Capital
10 Projects Municipal Service Occupation Tax Act".
11 (65 ILCS 5/8-11-25 new)
12 Sec. 8-11-25. Non-home rule capital projects municipal
13 use tax. The corporate authorities of a non-home rule
14 municipality may impose a tax upon the privilege of using, in
15 the municipality, any item of tangible personal property that
16 is purchased at retail from a retailer, and that is titled or
17 registered with an agency of this State's government, at a
18 rate of up to 1% in 1/4 of 1% increments based on the selling
19 price of the tangible personal property, as "selling price"
20 is defined in the Use Tax Act, for expenditure on capital
21 projects as defined in Section 8-11-22, if approved by
22 referendum as provided in Section 8-11-21. The tax shall be
23 collected from persons whose Illinois address for title or
24 registration purposes is given as being in the municipality.
25 The tax shall be collected by the municipality imposing the
26 tax.
27 This Section may be cited as the "Non-Home Rule Capital
28 Projects Municipal Use Tax Act".