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90_HB2363ham001
LRB9007368KDksam
1 AMENDMENT TO HOUSE BILL 2363
2 AMENDMENT NO. . Amend House Bill 2363 on page 1, by
3 replacing lines 1 and 2 with the following:
4 "AN ACT in relation to taxes, amending named Acts."; and
5 on page 1, by replacing line 6 with the following:
6 "changing Sections 301, 304, and 704 as follows:
7 (35 ILCS 5/301) (from Ch. 120, par. 3-301)
8 Sec. 301. General Rule.
9 (a) Residents. All items of income or deduction which
10 were taken into account in the computation of base income for
11 the taxable year by a resident shall be allocated to this
12 State.
13 (b) Part-year residents. All items of income or
14 deduction which were taken into account in the computation of
15 base income for the taxable year by a part-year resident
16 shall, for that part of the year the part-year resident was a
17 resident of this State, be allocated to this State and, for
18 the remaining part of the year, be allocated to this State
19 only to the extent provided by Section 302, 303 or 304
20 (relating to compensation, nonbusiness income and business
21 income, respectively).
22 (c) Other persons.
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1 (1) In general. Any item of income or deduction
2 which was taken into account in the computation of base
3 income for the taxable year by any person other than a
4 resident and which is referred to in Section 302, 303 or
5 304 (relating to compensation, nonbusiness income and
6 business income, respectively) shall be allocated to this
7 State only to the extent provided by such section.
8 (2) Unspecified items. Any item of income or
9 deduction which was taken into account in the computation
10 of base income for the taxable year by any person other
11 than a resident and which is not otherwise specifically
12 allocated or apportioned pursuant to Section 302, 303 or
13 304 (including, without limitation, interest, dividends,
14 items of income taken into account under the provisions
15 of Sections 401 through 425 of the Internal Revenue Code,
16 and benefit payments received by a beneficiary of a
17 supplemental unemployment benefit trust which is referred
18 to in Section 501(c)(17) of the Internal Revenue Code):
19 (A) in the case of an individual, trust, or
20 estate, shall not be allocated to this State; and
21 (B) in the case of a corporation, trust, or a
22 partnership, shall be allocated to this State if the
23 taxpayer had its commercial domicile in this State
24 at the time such item was paid, incurred or accrued.
25 (Source: P.A. 90-491, eff. 1-1-98.)"; and
26 on page 10, below line 7, by inserting the following:
27 "(35 ILCS 5/704) (from Ch. 120, par. 7-704)
28 Sec. 704. Employer's Return and Payment of Tax Withheld.
29 (a) In general, every employer who deducts and withholds
30 or is required to deduct and withhold tax under this Act
31 shall make such payments and returns as hereinafter provided.
32 (b) Quarter Monthly Payments: Returns. Every employer
33 who deducts and withholds or is required to deduct and
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1 withhold tax under this Act shall, on or before the third
2 banking day following the close of a quarter monthly period,
3 pay to the Department or to a depositary designated by the
4 Department, pursuant to regulations prescribed by the
5 Department, the taxes so required to be deducted and
6 withheld, whenever the aggregate amount withheld by such
7 employer (together with amounts previously withheld and not
8 paid to the Department) exceeds $1,000. For purposes of this
9 Section, Saturdays, Sundays, legal holidays and local bank
10 holidays are not banking days. A quarter monthly period, for
11 purposes of this subsection, ends on the 7th, 15th, 22nd and
12 last day of each calendar month. Every such employer shall
13 for each calendar quarter, on or before the last day of the
14 first month following the close of such quarter, and for the
15 calendar year, on or before January 31 of the succeeding
16 calendar year, make a return with respect to such taxes in
17 such form and manner as the Department may by regulations
18 prescribe, and pay to the Department or to a depositary
19 designated by the Department all withheld taxes not
20 previously paid to the Department.
21 (c) Monthly Payments: Returns. Every employer required
22 to deduct and withhold tax under this Act shall, on or before
23 the 15th day of the second and third months of each calendar
24 quarter, and on or before the last day of the month following
25 the last month of each such quarter, pay to the Department or
26 to a depositary designated by the Department, pursuant to
27 regulations prescribed by the Department, the taxes so
28 required to be deducted and withheld, whenever the aggregate
29 amount withheld by such employer (together with amounts
30 previously withheld and not paid to the Department) exceeds
31 $500 but does not exceed $1,000. Every such employer shall
32 for each calendar quarter, on or before the last day of the
33 first month following the close of such quarter, and for the
34 calendar year, on or before January 31 of the succeeding
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1 calendar year, make a return with respect to such taxes in
2 such form and manner as the Department may by regulations
3 prescribe, and pay to the Department or to a depositary
4 designated by the Department all withheld taxes not
5 previously paid to the Department.
6 (d) Annual Payments: Returns. Where the amount of
7 compensation paid by an employer is not sufficient to require
8 the withholding of tax from the compensation of any of its
9 employees (or where the aggregate amount withheld is less
10 than $500), the Department may by regulation permit such
11 employer to file only an annual return and to pay the taxes
12 required to be deducted and withheld at the time of filing
13 such annual return.
14 (e) Annual Return. The Department may, as it deems
15 appropriate, prescribe by regulation for the filing of annual
16 returns in lieu of quarterly returns described in subsections
17 (b) and (c).
18 (e-5) Annual Return and Payment. On and after January
19 1, 1998, notwithstanding subsections (b) through (d) of this
20 Section, every employer who deducts and withholds or is
21 required to deduct and withhold tax from a person engaged in
22 domestic service employment, as that term is defined in
23 Section 3510 of the Internal Revenue Code, may comply with
24 the requirements of this Section by filing an annual return
25 and paying the taxes required to be deducted and withheld on
26 or before the 15th day of the fourth month following the
27 close of the employer's taxable year. The annual return may
28 be submitted with the employer's individual income tax
29 return. Annual Return. Where the tax is withheld from a
30 person engaged in domestic service employment, as that term
31 is defined in Section 3510 of the Internal Revenue Code,
32 returns shall be filed on or before the 15th day of the
33 fourth month following the close of the employer's taxable
34 year.
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1 (f) Magnetic Media Filing. Forms W-2 that, pursuant to
2 the Internal Revenue Code and regulations promulgated
3 thereunder, are required to be submitted to the Internal
4 Revenue Service on magnetic media, must also be submitted to
5 the Department on magnetic media for Illinois purposes, if
6 required by the Department.
7 (Source: P.A. 90-374, eff. 8-14-97.)
8 Section 10. The Use Tax Act is amended by changing
9 Section 19 as follows:
10 (35 ILCS 105/19) (from Ch. 120, par. 439.19)
11 Sec. 19. If it shall appear that an amount of tax or
12 penalty or interest has been paid in error hereunder to the
13 Department by a purchaser, as distinguished from the
14 retailer, whether such amount be paid through a mistake of
15 fact or an error of law, such purchaser may file a claim for
16 credit or refund with the Department in accordance with
17 Sections 6, 6a, 6b, and 6c of the Retailers' Occupation Tax
18 Act. If it shall appear that an amount of tax or penalty or
19 interest has been paid in error to the Department hereunder
20 by a retailer who is required or authorized to collect and
21 remit the use tax, whether such amount be paid through a
22 mistake of fact or an error of law, such retailer may file a
23 claim for credit or refund with the Department in accordance
24 with Sections 6, 6a, 6b, and 6c of the Retailers' Occupation
25 Tax Act, provided that no credit or refund shall be allowed
26 for any amount paid by any such retailer unless it shall
27 appear that he bore the burden of such amount and did not
28 shift the burden thereof to anyone else (as in the case of a
29 duplicated tax payment which the retailer made to the
30 Department and did not collect from anyone else), or unless
31 it shall appear that he or she or his or her legal
32 representative has unconditionally repaid such amount to his
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1 vendee (1) who bore the burden thereof and has not shifted
2 such burden directly or indirectly in any manner whatsoever;
3 (2) who, if he has shifted such burden, has repaid
4 unconditionally such amount to his or her own vendee, and (3)
5 who is not entitled to receive any reimbursement therefor
6 from any other source than from his vendor, nor to be
7 relieved of such burden in any other manner whatsoever. If it
8 shall appear that an amount of tax has been paid in error
9 hereunder by the purchaser to a retailer, who retained such
10 tax as reimbursement for his or her tax liability on the same
11 sale under the Retailers' Occupation Tax Act, and who
12 remitted the amount involved to the Department under the
13 Retailers' Occupation Tax Act, whether such amount be paid
14 through a mistake of fact or an error of law, the procedure
15 for recovering such tax shall be that prescribed in Sections
16 6, 6a, 6b and 6c of the Retailers' Occupation Tax Act.
17 Any credit or refund that is allowed under this Section
18 shall bear interest at the rate and in the manner specified
19 in the Uniform Penalty and Interest Act.
20 Any claim filed hereunder shall be filed upon a form
21 prescribed and furnished by the Department. The claim shall
22 be signed by the claimant (or by the claimant's legal
23 representative if the claimant shall have died or become a
24 person under legal disability), or by a duly authorized agent
25 of the claimant or his or her legal representative.
26 A claim for credit or refund shall be considered to have
27 been filed with the Department on the date upon which it is
28 received by the Department. Upon receipt of any claim for
29 credit or refund filed under this Act, any officer or
30 employee of the Department, authorized in writing by the
31 Director of Revenue to acknowledge receipt of such claims on
32 behalf of the Department, shall execute on behalf of the
33 Department, and shall deliver or mail to the claimant or his
34 duly authorized agent, a written receipt, acknowledging that
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1 the claim has been filed with the Department, describing the
2 claim in sufficient detail to identify it and stating the
3 date upon which the claim was received by the Department.
4 Such written receipt shall be prima facie evidence that the
5 Department received the claim described in such receipt and
6 shall be prima facie evidence of the date when such claim was
7 received by the Department. In the absence of such a written
8 receipt, the records of the Department as to when the claim
9 was received by the Department, or as to whether or not the
10 claim was received at all by the Department, shall be deemed
11 to be prima facie correct upon these questions in the event
12 of any dispute between the claimant (or his or her legal
13 representative) and the Department concerning these
14 questions.
15 In case the Department determines that the claimant is
16 entitled to a refund, such refund shall be made only from
17 such appropriation as may be available for that purpose. If
18 it appears unlikely that the amount appropriated would permit
19 everyone having a claim allowed during the period covered by
20 such appropriation to elect to receive a cash refund, the
21 Department, by rule or regulation, shall provide for the
22 payment of refunds in hardship cases and shall define what
23 types of cases qualify as hardship cases.
24 If a retailer who has failed to pay use tax on gross
25 receipts from retail sales is required by the Department to
26 pay such tax, such retailer, without filing any formal claim
27 with the Department, shall be allowed to take credit against
28 such use tax liability to the extent, if any, to which such
29 retailer has paid an amount equivalent to retailers'
30 occupation tax or has paid use tax in error to his or her
31 vendor or vendors of the same tangible personal property
32 which such retailer bought for resale and did not first use
33 before selling it, and no penalty or interest shall be
34 charged to such retailer on the amount of such credit.
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1 However, when such credit is allowed to the retailer by the
2 Department, the vendor is precluded from refunding any of
3 that tax to the retailer and filing a claim for credit or
4 refund with respect thereto with the Department. The
5 provisions of this amendatory Act shall be applied
6 retroactively, regardless of the date of the transaction.
7 (Source: P.A. 87-205.)
8 Section 15. The Service Occupation Tax Act is amended by
9 changing Section 19 as follows:
10 (35 ILCS 115/19) (from Ch. 120, par. 439.119)
11 Sec. 19. As to any claim for credit or refund filed with
12 the Department on or and after each January 1 and July 1 but
13 on or before June 30 of any given year, no amount of tax or
14 penalty or interest erroneously paid (either in total or
15 partial liquidation of a tax or penalty or interest under
16 this Act) more than 3 years prior to such January 1 and July
17 1, respectively, shall be credited or refunded, except that
18 if both the Department and taxpayer have agreed to an
19 extension of time to issue a notice of tax liability as
20 provided in Section 4 of the Retailers' Occupation Tax Act,
21 such claim may be filed at any time prior to the expiration
22 of the period agreed upon and as to any such claim filed on
23 and after July 1 but on or before December 31 of any given
24 year, no amount of tax or penalty or interest erroneously
25 paid (either in total or partial liquidation of a tax or
26 penalty under this Act) more than 3 years prior to such July
27 1 shall be credited or refunded. No claim shall be allowed
28 for any amount paid to the Department, whether paid
29 voluntarily or involuntarily, if paid in total or partial
30 liquidation of an assessment which had become final before
31 the claim for credit or refund to recover the amount so paid
32 is filed with the Department, or if paid in total or partial
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1 liquidation of a judgment or order of court.
2 (Source: P.A. 79-1365; 79-1366.)
3 Section 20. The Counties Code is amended by changing
4 Section 5-1006.5 as follows:
5 (55 ILCS 5/5-1006.5)
6 Sec. 5-1006.5. Special County Retailers' Occupation Tax
7 For Public Safety.
8 (a) The county board of any county may impose a tax upon
9 all persons engaged in the business of selling tangible
10 personal property, other than personal property titled or
11 registered with an agency of this State's government, at
12 retail in the county on the gross receipts from the sales
13 made in the course of business to provide revenue to be used
14 exclusively for public safety purposes in that county, if a
15 proposition for the tax has been submitted to the electors of
16 that county and approved by a majority of those voting on the
17 question. If imposed, this tax shall be imposed only in
18 one-quarter percent increments. By resolution, the county
19 board may order the proposition to be submitted at any
20 election. The county clerk shall certify the question to the
21 proper election authority, who shall submit the proposition
22 at an election in accordance with the general election law.
23 The proposition shall be in substantially the following
24 form:
25 "Shall (name of county) be authorized to impose a
26 public safety tax at the rate of .... upon all persons
27 engaged in the business of selling tangible personal
28 property at retail in the county on gross receipts from
29 the sales made in the course of their business to be used
30 for crime prevention, detention, and other public safety
31 purposes?"
32 Votes shall be recorded as Yes or No. If a majority of the
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1 electors voting on the proposition vote in favor of it, the
2 county may impose the tax.
3 This additional tax may not be imposed on the sales of
4 food for human consumption that is to be consumed off the
5 premises where it is sold (other than alcoholic beverages,
6 soft drinks, and food which has been prepared for immediate
7 consumption) and prescription and non-prescription medicines,
8 drugs, medical appliances and insulin, urine testing
9 materials, syringes, and needles used by diabetics. The tax
10 imposed by a county under this Section and all civil
11 penalties that may be assessed as an incident of the tax
12 shall be collected and enforced by the Illinois Department of
13 Revenue. The certificate of registration that is issued by
14 the Department to a retailer under the Retailers' Occupation
15 Tax Act shall permit the retailer to engage in a business
16 that is taxable without registering separately with the
17 Department under an ordinance or resolution under this
18 Section. The Department has full power to administer and
19 enforce this Section, to collect all taxes and penalties due
20 under this Section, to dispose of taxes and penalties so
21 collected in the manner provided in this Section, and to
22 determine all rights to credit memoranda arising on account
23 of the erroneous payment of a tax or penalty under this
24 Section. In the administration of and compliance with this
25 Section, the Department and persons who are subject to this
26 Section shall (i) have the same rights, remedies, privileges,
27 immunities, powers, and duties, (ii) be subject to the same
28 conditions, restrictions, limitations, penalties, and
29 definitions of terms, and (iii) employ the same modes of
30 procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
31 1f, 1i, 1j, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
32 contained in those Sections other than the State rate of
33 tax), 2-15 through 2-70 2-40, 2a, 2b, 2c, 3 (except
34 provisions relating to transaction returns and quarter
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1 monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
2 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13
3 of the Retailers' Occupation Tax Act and Section 3-7 of the
4 Uniform Penalty and Interest Act as if those provisions were
5 set forth in this Section.
6 Persons subject to any tax imposed under the authority
7 granted in this Section may reimburse themselves for their
8 sellers' tax liability by separately stating the tax as an
9 additional charge, which charge may be stated in combination,
10 in a single amount, with State tax which sellers are required
11 to collect under the Use Tax Act, pursuant to such bracketed
12 schedules as the Department may prescribe.
13 Whenever the Department determines that a refund should
14 be made under this Section to a claimant instead of issuing a
15 credit memorandum, the Department shall notify the State
16 Comptroller, who shall cause the order to be drawn for the
17 amount specified and to the person named in the notification
18 from the Department. The refund shall be paid by the State
19 Treasurer out of the County Public Safety Retailers'
20 Occupation Tax Fund.
21 (b) If a tax has been imposed under subsection (a), a
22 service occupation tax shall also be imposed at the same rate
23 upon all persons engaged, in the county, in the business of
24 making sales of service, who, as an incident to making those
25 sales of service, transfer tangible personal property within
26 the county as an incident to a sale of service. This tax may
27 not be imposed on sales of food for human consumption that is
28 to be consumed off the premises where it is sold (other than
29 alcoholic beverages, soft drinks, and food prepared for
30 immediate consumption) and prescription and non-prescription
31 medicines, drugs, medical appliances and insulin, urine
32 testing materials, syringes, and needles used by diabetics.
33 The tax imposed under this subsection and all civil penalties
34 that may be assessed as an incident thereof shall be
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1 collected and enforced by the Department of Revenue. The
2 Department has full power to administer and enforce this
3 subsection; to collect all taxes and penalties due hereunder;
4 to dispose of taxes and penalties so collected in the manner
5 hereinafter provided; and to determine all rights to credit
6 memoranda arising on account of the erroneous payment of tax
7 or penalty hereunder. In the administration of, and
8 compliance with this subsection, the Department and persons
9 who are subject to this paragraph shall (i) have the same
10 rights, remedies, privileges, immunities, powers, and duties,
11 (ii) be subject to the same conditions, restrictions,
12 limitations, penalties, exclusions, exemptions, and
13 definitions of terms, and (iii) employ the same modes of
14 procedure as are prescribed in Sections 1a-1, 2 (except that
15 the reference to State in the definition of supplier
16 maintaining a place of business in this State shall mean the
17 county), 2a, 3 through 3-50 (in respect to all provisions
18 therein other than the State rate of tax), 4 (except that the
19 reference to the State shall be to the county), 5, 7, 8
20 (except that the jurisdiction to which the tax shall be a
21 debt to the extent indicated in that Section 8 shall be the
22 county), 9 (except as to the disposition of taxes and
23 penalties collected, and except that the returned merchandise
24 credit for this tax may not be taken against any State tax),
25 10, 11, 12 (except the reference therein to Section 2b of the
26 Retailers' Occupation Tax Act), 13 (except that any reference
27 to the State shall mean the county), the first paragraph of
28 Section 15, 16, 17, 18, 19 and 20 of the Service Occupation
29 Tax Act and Section 3-7 of the Uniform Penalty and Interest
30 Act, as fully as if those provisions were set forth herein.
31 Persons subject to any tax imposed under the authority
32 granted in this subsection may reimburse themselves for their
33 serviceman's tax liability by separately stating the tax as
34 an additional charge, which charge may be stated in
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1 combination, in a single amount, with State tax that
2 servicemen are authorized to collect under the Service Use
3 Tax Act, in accordance with such bracket schedules as the
4 Department may prescribe.
5 Whenever the Department determines that a refund should
6 be made under this subsection to a claimant instead of
7 issuing a credit memorandum, the Department shall notify the
8 State Comptroller, who shall cause the warrant to be drawn
9 for the amount specified, and to the person named, in the
10 notification from the Department. The refund shall be paid
11 by the State Treasurer out of the County Public Safety
12 Retailers' Occupation Fund.
13 Nothing in this subsection shall be construed to
14 authorize the county to impose a tax upon the privilege of
15 engaging in any business which under the Constitution of the
16 United States may not be made the subject of taxation by the
17 State.
18 (c) The Department shall immediately pay over to the
19 State Treasurer, Ex Officio, as trustee, all taxes and
20 penalties collected under this Section to be deposited into
21 the County Public Safety Retailers' Occupation Tax Fund,
22 which is created in the State treasury. On or before the
23 25th day of each calendar month, the Department shall prepare
24 and certify to the Comptroller the disbursement of stated
25 sums of money to the counties from which retailers have paid
26 taxes or penalties to the Department during the second
27 preceding calendar month. The amount to be paid to each
28 county shall be the amount (not including credit memoranda)
29 collected under this Section during the second preceding
30 calendar month by the Department plus an amount the
31 Department determines is necessary to offset any amounts that
32 were erroneously paid to a different taxing body, and not
33 including (i) an amount equal to the amount of refunds made
34 during the second preceding calendar month by the Department
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1 on behalf of the county and (ii) any amount that the
2 Department determines is necessary to offset any amounts that
3 were payable to a different taxing body but were erroneously
4 paid to the county. Within 10 days after receipt by the
5 Comptroller of the disbursement certification to the counties
6 provided for in this Section to be given to the Comptroller
7 by the Department, the Comptroller shall cause the orders to
8 be drawn for the respective amounts in accordance with
9 directions contained in the certification.
10 In addition to the disbursement required by the preceding
11 paragraph, an allocation shall be made in March of each year
12 to each county that received more than $500,000 in
13 disbursements under the preceding paragraph in the preceding
14 calendar year. The allocation shall be in an amount equal to
15 the average monthly distribution made to each such county
16 under the preceding paragraph during the preceding calendar
17 year (excluding the 2 months of highest receipts). The
18 distribution made in March of each year subsequent to the
19 year in which an allocation was made pursuant to this
20 paragraph and the preceding paragraph shall be reduced by the
21 amount allocated and disbursed under this paragraph in the
22 preceding calendar year. The Department shall prepare and
23 certify to the Comptroller for disbursement the allocations
24 made in accordance with this paragraph.
25 (d) For the purpose of determining the local
26 governmental unit whose tax is applicable, a retail sale by a
27 producer of coal or another mineral mined in Illinois is a
28 sale at retail at the place where the coal or other mineral
29 mined in Illinois is extracted from the earth. This
30 paragraph does not apply to coal or another mineral when it
31 is delivered or shipped by the seller to the purchaser at a
32 point outside Illinois so that the sale is exempt under the
33 United States Constitution as a sale in interstate or foreign
34 commerce.
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1 (e) Nothing in this Section shall be construed to
2 authorize a county to impose a tax upon the privilege of
3 engaging in any business that under the Constitution of the
4 United States may not be made the subject of taxation by this
5 State.
6 (e-5) If a county imposes a tax under this Section, the
7 county board may, by ordinance, discontinue or lower the rate
8 of the tax. If the county board lowers the tax rate or
9 discontinues the tax, a referendum must be held in accordance
10 with subsection (a) of this Section in order to increase the
11 rate of the tax or to reimpose the discontinued tax.
12 (f) The results of any election authorizing a
13 proposition to impose a tax under this Section or effecting a
14 change in the rate of tax, or any ordinance lowering the rate
15 or discontinuing the tax, shall be certified by the county
16 clerk and filed with the Illinois Department of Revenue on or
17 before the first day of June. The Illinois Department of
18 Revenue shall then proceed to administer and enforce this
19 Section or to lower the rate or discontinue the tax, as the
20 case may be, as of the first day of January next following
21 the filing.
22 (g) When certifying the amount of a monthly disbursement
23 to a county under this Section, the Department shall increase
24 or decrease the amounts by an amount necessary to offset any
25 miscalculation of previous disbursements. The offset amount
26 shall be the amount erroneously disbursed within the previous
27 6 months from the time a miscalculation is discovered.
28 (h) This Section may be cited as the "Special County
29 Occupation Tax For Public Safety Law".
30 (i) For purposes of this Section, "public safety"
31 includes but is not limited to fire fighting, police,
32 medical, ambulance, or other emergency services.
33 (Source: P.A. 89-107, eff. 1-1-96; 89-718, eff. 3-7-97;
34 90-190, eff. 7-24-97; 90-267, eff. 7-30-97; revised 10-8-97.)
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1 Section 25. The Illinois Municipal Code is amended by
2 changing Section 8-11-6 as follows:
3 (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
4 Sec. 8-11-6. (a) The corporate authorities of a home rule
5 municipality may impose a tax upon the privilege of using, in
6 such municipality, any item of tangible personal property
7 which is purchased at retail from a retailer, and which is
8 titled or registered at a location within the corporate
9 limits of such home rule municipality with an agency of this
10 State's government, at a rate which is an increment of 1/4%
11 and based on the selling price of such tangible personal
12 property, as "selling price" is defined in the Use Tax Act.
13 In home rule municipalities with less than 2,000,000
14 inhabitants, the tax shall be collected by the municipality
15 imposing the tax from persons whose Illinois address for
16 titling or registration purposes is given as being in such
17 municipality.
18 (b) In home rule municipalities with 2,000,000 or more
19 inhabitants, the corporate authorities of the municipality
20 may additionally impose a tax beginning July 1, 1991 upon the
21 privilege of using in the municipality, any item of tangible
22 personal property, other than tangible personal property
23 titled or registered with an agency of the State's
24 government, that is purchased at retail from a retailer
25 located outside the corporate limits of the municipality, at
26 a rate that is an increment of 1/4% not to exceed 1% and
27 based on the selling price of the tangible personal property,
28 as "selling price" is defined in the Use Tax Act. Such tax
29 shall be collected from the purchaser by the municipality
30 imposing such tax.
31 To prevent multiple home rule taxation, the use in a home
32 rule municipality of tangible personal property that is
33 acquired outside the municipality and caused to be brought
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1 into the municipality by a person who has already paid a home
2 rule municipal tax in another municipality in respect to the
3 sale, purchase, or use of that property, shall be exempt to
4 the extent of the amount of the tax properly due and paid in
5 the other home rule municipality.
6 (c) If a municipality having 2,000,000 or more
7 inhabitants imposes the tax authorized by subsection (a),
8 then the tax shall be collected by the Illinois Department of
9 Revenue when the property is purchased at retail from a
10 retailer in the county in which the home rule municipality
11 imposing the tax is located, and in all contiguous counties.
12 The tax shall be remitted to the State, or an exemption
13 determination must be obtained from the Department before the
14 title or certificate of registration for the property may be
15 issued. The tax or proof of exemption may be transmitted to
16 the Department by way of the State agency with which, or
17 State officer with whom, the tangible personal property must
18 be titled or registered if the Department and that agency or
19 State officer determine that this procedure will expedite the
20 processing of applications for title or registration.
21 The Department shall have full power to administer and
22 enforce this Section to collect all taxes, penalties and
23 interest due hereunder, to dispose of taxes, penalties and
24 interest so collected in the manner hereinafter provided, and
25 determine all rights to credit memoranda or refunds arising
26 on account of the erroneous payment of tax, penalty or
27 interest hereunder. In the administration of and compliance
28 with this Section the Department and persons who are subject
29 to this Section shall have the same rights, remedies,
30 privileges, immunities, powers and duties, and be subject to
31 the same conditions, restrictions, limitations, penalties and
32 definitions of terms, and employ the same modes of procedure
33 as are prescribed in Sections 2 (except the definition of
34 "retailer maintaining a place of business in this State"), 3
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1 (except provisions pertaining to the State rate of tax, and
2 except provisions concerning collection or refunding of the
3 tax by retailers), 4, 11, 12, 12a, 14, 15, 19 (except the
4 portions pertaining to claims by retailers and except the
5 last paragraph concerning refunds), 20, 21 and 22 of the Use
6 Tax Act, which are not inconsistent with this Section, as
7 fully as if provisions contained in those Sections of the Use
8 Tax Act were set forth herein.
9 Whenever the Department determines that a refund shall be
10 made under this Section to a claimant instead of issuing a
11 credit memorandum, the Department shall notify the State
12 Comptroller, who shall cause the order to be drawn for the
13 amount specified, and to the person named, in such
14 notification from the Department. Such refund shall be paid
15 by the State Treasurer out of the home rule municipal
16 retailers' occupation tax fund.
17 The Department shall forthwith pay over to the State
18 Treasurer, ex officio, as trustee, all taxes, penalties and
19 interest collected hereunder. On or before the 25th day of
20 each calendar month, the Department shall prepare and certify
21 to the State Comptroller the disbursement of stated sums of
22 money to named municipalities, the municipality in each
23 instance to be that municipality from which the Department
24 during the second preceding calendar month, collected
25 municipal use tax from any person whose Illinois address for
26 titling or registration purposes is given as being in such
27 municipality. The amount to be paid to each municipality
28 shall be the amount (not including credit memoranda)
29 collected hereunder during the second preceding calendar
30 month by the Department, and not including an amount equal to
31 the amount of refunds made during the second preceding
32 calendar month by the Department on behalf of such
33 municipality, less the amount expended during the second
34 preceding month by the Department to be paid from the
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1 appropriation to the Department from the Home Rule Municipal
2 Retailers' Occupation Tax Trust Fund. The appropriation to
3 cover the costs incurred by the Department in administering
4 and enforcing this Section shall not exceed 2% of the amount
5 estimated to be deposited into the Home Rule Municipal
6 Retailers' Occupation Tax Trust Fund during the fiscal year
7 for which the appropriation is made. Within 10 days after
8 receipt by the State Comptroller of the disbursement
9 certification to the municipalities provided for in this
10 Section to be given to the State Comptroller by the
11 Department, the State Comptroller shall cause the orders to
12 be drawn for the respective amounts in accordance with the
13 directions contained in that certification.
14 Any ordinance imposing or discontinuing any tax to be
15 collected and enforced by the Department under this Section
16 shall be adopted and a certified copy thereof filed with the
17 Department on or before October 1, whereupon the Department
18 of Revenue shall proceed to administer and enforce this
19 Section on behalf of the municipalities as of January 1 next
20 following such adoption and filing.
21 Nothing in this subsection (c) shall prevent a home rule
22 municipality from collecting the tax pursuant to subsection
23 (a) in any situation where such tax is not collected by the
24 Department of Revenue under this subsection (c).
25 (d) Any unobligated balance remaining in the Municipal
26 Retailers' Occupation Tax Fund on December 31, 1989, which
27 fund was abolished by Public Act 85-1135, and all receipts of
28 municipal tax as a result of audits of liability periods
29 prior to January 1, 1990, shall be paid into the Local
30 Government Tax Fund, for distribution as provided by this
31 Section prior to the enactment of Public Act 85-1135. All
32 receipts of municipal tax as a result of an assessment not
33 arising from an audit, for liability periods prior to January
34 1, 1990, shall be paid into the Local Government Tax Fund for
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1 distribution before July 1, 1990, as provided by this Section
2 prior to the enactment of Public Act 85-1135, and on and
3 after July 1, 1990, all such receipts shall be distributed as
4 provided in Section 6z-18 of the State Finance Act.
5 (e) As used in this Section, "Municipal" and
6 "Municipality" means a city, village or incorporated town,
7 including an incorporated town which has superseded a civil
8 township.
9 (f) This Section shall be known and may be cited as the
10 "Home Rule Municipal Use Tax Act".
11 (Source: P.A. 87-14; 87-876; 88-116.)
12 (35 ILCS 110/19 rep.)
13 Section 30. The Service Use Tax Act is amended by
14 repealing Section 19.".