State of Illinois
92nd General Assembly
Legislation

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92_SB2037

 
                                              LRB9212648BDdvA

 1        AN ACT concerning municipalities.

 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 Sections 8-11-1.1, 8-11-1.2, 8-11-1.3, 8-11-1.4, and
 6    8-11-1.5 as follows:

 7        (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
 8        Sec.  8-11-1.1.  Non-home rule municipalities; imposition
 9    of taxes.
10        (a)  The  corporate  authorities  of  a   non-home   rule
11    municipality  may,  upon  approval  of  the  electors  of the
12    municipality pursuant to  subsection  (b)  of  this  Section,
13    impose   by  ordinance  or  resolution  the  1/2  of  1%  tax
14    authorized in Sections 8-11-1.3,  8-11-1.4  and  8-11-1.5  of
15    this Act.
16        (b)  The corporate authorities of the municipality may by
17    ordinance  or  resolution  call  for  the  submission  to the
18    electors of the municipality  the  question  of  whether  the
19    municipality  shall  impose such tax.  Such question shall be
20    certified by the municipal clerk to the election authority in
21    accordance with Section 28-5 of the Election Code  and  shall
22    be  in a form in accordance with Section 16-7 of the Election
23    Code.
24        If a majority of the electors in the municipality  voting
25    upon  the question vote in the affirmative, such tax shall be
26    imposed.
27        An ordinance or resolution imposing the tax of  not  more
28    than  1/2 of 1% tax hereunder or discontinuing the same shall
29    be adopted and a certified  copy  thereof,  together  with  a
30    certification  that  the  ordinance  or  resolution  received
31    referendum  approval  in  the  case of the imposition of such

 
                            -2-               LRB9212648BDdvA
 1    tax, filed with the Department of Revenue, on or  before  the
 2    first  day of June, whereupon the Department shall proceed to
 3    administer and enforce the additional tax or  to  discontinue
 4    the tax, as the case may be, as of the first day of September
 5    next following such adoption and filing. Beginning January 1,
 6    1992,  an  ordinance  or resolution imposing or discontinuing
 7    the tax hereunder shall  be  adopted  and  a  certified  copy
 8    thereof  filed with the Department on or before the first day
 9    of July, whereupon the Department shall proceed to administer
10    and enforce this Section as of the first day of October  next
11    following  such  adoption  and  filing.  Beginning January 1,
12    1993, an ordinance or resolution  imposing  or  discontinuing
13    the  tax  hereunder  shall  be  adopted  and a certified copy
14    thereof filed with the Department on or before the first  day
15    of   October,  whereupon  the  Department  shall  proceed  to
16    administer and enforce this Section as of the  first  day  of
17    January  next  following  such adoption and filing. Beginning
18    October 1, 2002,  an  ordinance  or  resolution  imposing  or
19    discontinuing  the  tax  under  this  Section  or effecting a
20    change in the rate of tax must either (i) be  adopted  and  a
21    certified  copy of the ordinance or resolution filed with the
22    Department on or before the first day of April, whereupon the
23    Department shall  proceed  to  administer  and  enforce  this
24    Section  as  of  the  first  day  of  July next following the
25    adoption and filing; or (ii) be adopted and a certified  copy
26    of  the  ordinance or resolution filed with the Department on
27    or before the first day of October, whereupon the  Department
28    shall  proceed  to  administer and enforce this Section as of
29    the first day of January  next  following  the  adoption  and
30    filing.  A  non-home  rule  municipality may file a certified
31    copy of an ordinance or resolution, with a certification that
32    the ordinance or resolution received referendum  approval  in
33    the case of the imposition of the tax, with the Department of
34    Revenue,  as  required under this Section, only after October
 
                            -3-               LRB9212648BDdvA
 1    2, 2000.
 2        The tax authorized by this Section may not be  more  than
 3    1/2 of 1% and may be imposed only in 1/4% increments.
 4    (Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.)

 5        (65 ILCS 5/8-11-1.2) (from Ch. 24, par. 8-11-1.2)
 6        Sec.   8-11-1.2.    Definition.    As  used  in  Sections
 7    8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act:,
 8        (a)  "Public infrastructure" means  municipal  roads  and
 9    streets, access roads, bridges, and sidewalks; waste disposal
10    systems;   and   water   and  sewer  line  extensions,  water
11    distribution  and  purification   facilities,   storm   water
12    drainage  and  retention  facilities,  and  sewage  treatment
13    facilities.
14        (b)  "Property   tax   relief"  means  the  action  of  a
15    municipality to reduce the levy  for  real  estate  taxes  or
16    avoid  an  increase  in  the  levy for real estate taxes that
17    would otherwise have been required.  Property tax  relief  or
18    the  avoidance  of  property  tax must uniformly apply to all
19    classes of property.
20    (Source: P.A. 91-51, eff. 6-30-99.)

21        (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
22        Sec.  8-11-1.3.  Non-Home   Rule   Municipal   Retailers'
23    Occupation  Tax Act.  The corporate authorities of a non-home
24    rule municipality may impose a tax upon all  persons  engaged
25    in  the business of selling tangible personal property, other
26    than on an item of tangible personal property which is titled
27    and registered by an agency of this  State's  Government,  at
28    retail  in  the  municipality  at  the  rate of 1/2 of 1% for
29    expenditure on public  infrastructure  or  for  property  tax
30    relief  or both as defined in Section 8-11-1.2 if approved by
31    referendum as provided in  Section  8-11-1.1,  of  the  gross
32    receipts from such sales made in the course of such business.
 
                            -4-               LRB9212648BDdvA
 1    The  tax  imposed  may  not be more than 1/2 of 1% and may be
 2    imposed only in 1/4% increments. The tax may not  be  imposed
 3    on  the  sale  of  food  for  human consumption that is to be
 4    consumed off the  premises  where  it  is  sold  (other  than
 5    alcoholic  beverages,  soft  drinks,  and  food that has been
 6    prepared for  immediate  consumption)  and  prescription  and
 7    nonprescription  medicines,  drugs,  medical  appliances, and
 8    insulin, urine testing materials, syringes, and needles  used
 9    by  diabetics.  The tax imposed by a municipality pursuant to
10    this Section and all civil penalties that may be assessed  as
11    an  incident  thereof  shall be collected and enforced by the
12    State Department of Revenue.  The certificate of registration
13    which is issued by the Department to  a  retailer  under  the
14    Retailers'  Occupation  Tax Act shall permit such retailer to
15    engage in a business which is taxable under any ordinance  or
16    resolution   enacted   pursuant   to   this  Section  without
17    registering  separately  with  the  Department   under   such
18    ordinance   or   resolution   or  under  this  Section.   The
19    Department shall have full power to  administer  and  enforce
20    this   Section;  to  collect  all  taxes  and  penalties  due
21    hereunder; to dispose of taxes and penalties so collected  in
22    the  manner hereinafter provided, and to determine all rights
23    to credit memoranda, arising  on  account  of  the  erroneous
24    payment  of  tax or penalty hereunder.  In the administration
25    of, and compliance with, this  Section,  the  Department  and
26    persons  who  are subject to this Section shall have the same
27    rights, remedies, privileges, immunities, powers and  duties,
28    and   be   subject  to  the  same  conditions,  restrictions,
29    limitations, penalties and definitions of terms,  and  employ
30    the same modes of procedure, as are prescribed in Sections 1,
31    1a,  1a-1,  1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to
32    all provisions therein other than the State rate of tax), 2c,
33    3 (except as  to  the  disposition  of  taxes  and  penalties
34    collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
 
                            -5-               LRB9212648BDdvA
 1    5l,  6,  6a,  6b,  6c,  7,  8,  9,  10,  11, 12 and 13 of the
 2    Retailers' Occupation Tax Act and Section 3-7 of the  Uniform
 3    Penalty and Interest Act as fully as if those provisions were
 4    set forth herein.
 5        No  municipality  may  impose  a  tax  under this Section
 6    unless the municipality also imposes a tax at the  same  rate
 7    under Section 8-11-1.4 of this Code.
 8        Persons  subject  to  any  tax  imposed  pursuant  to the
 9    authority granted in this Section  may  reimburse  themselves
10    for  their  seller's  tax  liability  hereunder by separately
11    stating such tax as an additional charge, which charge may be
12    stated in combination, in a single  amount,  with  State  tax
13    which  sellers are required to collect under the Use Tax Act,
14    pursuant to such bracket  schedules  as  the  Department  may
15    prescribe.
16        Whenever  the  Department determines that a refund should
17    be made under this Section to a claimant instead of issuing a
18    credit memorandum, the  Department  shall  notify  the  State
19    Comptroller,  who  shall  cause the order to be drawn for the
20    amount  specified,  and  to  the  person   named,   in   such
21    notification  from the Department.  Such refund shall be paid
22    by the State Treasurer out of  the  non-home  rule  municipal
23    retailers' occupation tax fund.
24        The  Department  shall  forthwith  pay  over to the State
25    Treasurer, ex officio, as trustee, all  taxes  and  penalties
26    collected  hereunder.   On  or  before  the  25th day of each
27    calendar month, the Department shall prepare and  certify  to
28    the  Comptroller  the disbursement of stated sums of money to
29    named municipalities, the municipalities  to  be  those  from
30    which retailers have paid taxes or penalties hereunder to the
31    Department  during  the  second preceding calendar month. The
32    amount to be paid to each municipality shall  be  the  amount
33    (not  including  credit memoranda) collected hereunder during
34    the second preceding calendar month by the Department plus an
 
                            -6-               LRB9212648BDdvA
 1    amount the Department determines is necessary to  offset  any
 2    amounts  which  were  erroneously  paid to a different taxing
 3    body,  and not including an amount equal  to  the  amount  of
 4    refunds  made  during  the second preceding calendar month by
 5    the Department  on  behalf  of  such  municipality,  and  not
 6    including  any  amount  which  the  Department  determines is
 7    necessary to offset any  amounts  which  were  payable  to  a
 8    different  taxing  body  but  were  erroneously  paid  to the
 9    municipality.  Within  10  days   after   receipt,   by   the
10    Comptroller,   of   the  disbursement  certification  to  the
11    municipalities, provided for in this Section to be  given  to
12    the  Comptroller  by  the  Department,  the Comptroller shall
13    cause the orders to be drawn for the  respective  amounts  in
14    accordance    with   the   directions   contained   in   such
15    certification.
16        For the purpose of  determining  the  local  governmental
17    unit whose tax is applicable, a retail sale, by a producer of
18    coal  or other mineral mined in Illinois, is a sale at retail
19    at the place  where  the  coal  or  other  mineral  mined  in
20    Illinois  is  extracted  from the earth.  This paragraph does
21    not apply to coal or other mineral when it  is  delivered  or
22    shipped  by  the  seller  to the purchaser at a point outside
23    Illinois so  that  the  sale  is  exempt  under  the  Federal
24    Constitution as a sale in interstate or foreign commerce.
25        Nothing in this Section shall be construed to authorize a
26    municipality  to  impose a tax upon the privilege of engaging
27    in any business which under the constitution  of  the  United
28    States may not be made the subject of taxation by this State.
29        When certifying the amount of a monthly disbursement to a
30    municipality   under   this  Section,  the  Department  shall
31    increase or decrease such amount by an  amount  necessary  to
32    offset  any  misallocation  of  previous  disbursements.  The
33    offset  amount  shall  be  the  amount  erroneously disbursed
34    within the previous 6 months from the time a misallocation is
 
                            -7-               LRB9212648BDdvA
 1    discovered.
 2        The Department of Revenue shall implement this amendatory
 3    Act of the 91st General Assembly so as to collect the tax  on
 4    and after January 1, 2002.
 5        As  used  in this Section, "municipal" and "municipality"
 6    means a city, village  or  incorporated  town,  including  an
 7    incorporated town which has superseded a civil township.
 8        This  Section  shall  be  known  and  may be cited as the
 9    "Non-Home Rule Municipal Retailers' Occupation Tax Act".
10    (Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.)

11        (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
12        Sec.   8-11-1.4.  Non-Home   Rule    Municipal    Service
13    Occupation  Tax Act.  The corporate authorities of a non-home
14    rule municipality may impose a tax upon all persons  engaged,
15    in  such  municipality,  in  the  business of making sales of
16    service at the rate of 1/2 of 1% for  expenditure  on  public
17    infrastructure  or for property tax relief or both as defined
18    in Section 8-11-1.2 if approved by referendum as provided  in
19    Section  8-11-1.1,  of  the  selling  price  of  all tangible
20    personal property transferred by such  servicemen  either  in
21    the form of tangible personal property or in the form of real
22    estate  as  an incident to a sale of service. The tax imposed
23    may not be more than 1/2 of 1% and may  be  imposed  only  in
24    1/4%  increments.  The  tax may not be imposed on the sale of
25    food for human consumption that is to  be  consumed  off  the
26    premises  where  it  is sold (other than alcoholic beverages,
27    soft drinks, and food that has been  prepared  for  immediate
28    consumption)  and prescription and nonprescription medicines,
29    drugs,  medical  appliances,  and  insulin,   urine   testing
30    materials,  syringes,  and needles used by diabetics. The tax
31    imposed by a municipality pursuant to this  Section  and  all
32    civil  penalties  that may be assessed as an incident thereof
33    shall be collected and enforced by the  State  Department  of
 
                            -8-               LRB9212648BDdvA
 1    Revenue.  The  certificate of registration which is issued by
 2    the Department to a retailer under the Retailers'  Occupation
 3    Tax  Act or under the Service Occupation Tax Act shall permit
 4    such registrant to engage in  a  business  which  is  taxable
 5    under  any  ordinance  or resolution enacted pursuant to this
 6    Section without registering separately  with  the  Department
 7    under such ordinance or resolution or under this Section. The
 8    Department  shall  have  full power to administer and enforce
 9    this  Section;  to  collect  all  taxes  and  penalties   due
10    hereunder;  to dispose of taxes and penalties so collected in
11    the manner hereinafter provided, and to determine all  rights
12    to  credit  memoranda  arising  on  account  of the erroneous
13    payment of tax or penalty hereunder.  In  the  administration
14    of,  and  compliance  with,  this  Section the Department and
15    persons who are subject to this Section shall have  the  same
16    rights,  remedies, privileges, immunities, powers and duties,
17    and  be  subject  to  the  same   conditions,   restrictions,
18    limitations,  penalties  and definitions of terms, and employ
19    the same modes of procedure, as are  prescribed  in  Sections
20    1a-1,  2,  2a,  3  through 3-50 (in respect to all provisions
21    therein other than the State rate of tax), 4 (except that the
22    reference to the State shall be to the taxing  municipality),
23    5,  7, 8 (except that the jurisdiction to which the tax shall
24    be a debt to the extent indicated in that Section 8 shall  be
25    the  taxing municipality), 9 (except as to the disposition of
26    taxes and penalties collected, and except that  the  returned
27    merchandise  credit  for  this municipal tax may not be taken
28    against any State tax), 10,  11,  12  (except  the  reference
29    therein  to Section 2b of the Retailers' Occupation Tax Act),
30    13 (except that any reference to the  State  shall  mean  the
31    taxing  municipality), the first paragraph of Section 15, 16,
32    17, 18, 19 and 20 of  the  Service  Occupation  Tax  Act  and
33    Section 3-7 of the Uniform Penalty and Interest Act, as fully
34    as if those provisions were set forth herein.
 
                            -9-               LRB9212648BDdvA
 1        No  municipality  may  impose  a  tax  under this Section
 2    unless the municipality also imposes a tax at the  same  rate
 3    under Section 8-11-1.3 of this Code.
 4        Persons  subject  to  any  tax  imposed  pursuant  to the
 5    authority granted in this Section  may  reimburse  themselves
 6    for  their serviceman's tax liability hereunder by separately
 7    stating such tax as an additional charge, which charge may be
 8    stated in combination, in a single  amount,  with  State  tax
 9    which  servicemen are authorized to collect under the Service
10    Use Tax Act,  pursuant  to  such  bracket  schedules  as  the
11    Department may prescribe.
12        Whenever  the  Department determines that a refund should
13    be made under this Section to a claimant instead  of  issuing
14    credit  memorandum,  the  Department  shall  notify the State
15    Comptroller, who shall cause the order to be  drawn  for  the
16    amount   specified,   and   to  the  person  named,  in  such
17    notification from the Department. Such refund shall  be  paid
18    by  the  State  Treasurer  out  of  the  municipal retailers'
19    occupation tax fund.
20        The Department shall forthwith  pay  over  to  the  State
21    Treasurer,  ex  officio,  as trustee, all taxes and penalties
22    collected hereunder. On  or  before  the  25th  day  of  each
23    calendar  month,  the Department shall prepare and certify to
24    the Comptroller the disbursement of stated sums of  money  to
25    named  municipalities,  the  municipalities  to be those from
26    which suppliers and servicemen have paid taxes  or  penalties
27    hereunder  to  the  Department  during  the  second preceding
28    calendar month. The amount to be paid  to  each  municipality
29    shall   be   the  amount  (not  including  credit  memoranda)
30    collected hereunder  during  the  second  preceding  calendar
31    month by the Department, and not including an amount equal to
32    the  amount  of  refunds  made  during  the  second preceding
33    calendar  month  by  the  Department  on   behalf   of   such
34    municipality.   Within   10   days   after  receipt,  by  the
 
                            -10-              LRB9212648BDdvA
 1    Comptroller,  of  the  disbursement  certification   to   the
 2    municipalities  and the General Revenue Fund, provided for in
 3    this  Section  to  be  given  to  the  Comptroller   by   the
 4    Department,  the  Comptroller  shall  cause  the orders to be
 5    drawn for the  respective  amounts  in  accordance  with  the
 6    directions contained in such certification.
 7        The Department of Revenue shall implement this amendatory
 8    Act  of the 91st General Assembly so as to collect the tax on
 9    and after January 1, 2002.
10        Nothing in this Section shall be construed to authorize a
11    municipality to impose a tax upon the privilege  of  engaging
12    in  any  business  which under the constitution of the United
13    States may not be made the subject of taxation by this State.
14        As used in this Section,  "municipal"  or  "municipality"
15    means  or  refers  to  a  city, village or incorporated town,
16    including an incorporated town which has superseded  a  civil
17    township.
18        This  Section  shall  be  known  and  may be cited as the
19    "Non-Home Rule Municipal Service Occupation Tax Act".
20    (Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.)

21        (65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5)
22        Sec. 8-11-1.5.  Non-Home Rule Municipal Use Tax Act.  The
23    corporate  authorities  of  a  non-home rule municipality may
24    impose  a  tax  upon  the  privilege  of   using,   in   such
25    municipality, any item of tangible personal property which is
26    purchased  at  retail from a retailer, and which is titled or
27    registered with an agency of this State's  government,  at  a
28    rate  of  1/2  of  1%  and based on the selling price of such
29    tangible personal property, as "selling price" is defined  in
30    the  Use Tax Act, for expenditure on public infrastructure or
31    for property  tax  relief  or  both  as  defined  in  Section
32    8-11-1.2,  if  approved  by referendum as provided in Section
33    8-11-1.1. The tax imposed may not be more than 1/2 of 1%  and
 
                            -11-              LRB9212648BDdvA
 1    may  be  imposed  only  in 1/4% increments. Such tax shall be
 2    collected from persons whose Illinois address  for  title  or
 3    registration purposes is given as being in such municipality.
 4    Such tax shall be collected by the municipality imposing such
 5    tax.  A non-home rule municipality may not impose and collect
 6    the tax prior to January 1, 2002.
 7        This Section shall be known  and  may  be  cited  as  the
 8    "Non-Home Rule Municipal Use Tax Act".
 9    (Source: P.A. 91-649, eff. 1-1-00.)

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