Public Act 096-1057
 
SB3134 EnrolledLRB096 20281 RLJ 35887 b

    AN ACT concerning local government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Municipal Code is amended by
changing Sections 8-11-1.1, 8-11-1.3, 8-11-1.4, and 8-11-1.5
as follows:
 
    (65 ILCS 5/8-11-1.1)  (from Ch. 24, par. 8-11-1.1)
    Sec. 8-11-1.1. Non-home rule municipalities; imposition of
taxes.
    (a) The corporate authorities of a non-home rule
municipality may, upon approval of the electors of the
municipality pursuant to subsection (b) of this Section, impose
by ordinance or resolution the tax authorized in Sections
8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act.
    (b) The corporate authorities of the municipality may by
ordinance or resolution call for the submission to the electors
of the municipality the question of whether the municipality
shall impose such tax. Such question shall be certified by the
municipal clerk to the election authority in accordance with
Section 28-5 of the Election Code and shall be in a form in
accordance with Section 16-7 of the Election Code.
    Notwithstanding any provision of law to the contrary, if
the proceeds of the tax may be used for municipal operations
pursuant to Section 8-11-1.3, 8-11-1.4, or 8-11-1.5, then the
election authority must submit the question in substantially
the following form:
        Shall the corporate authorities of the municipality be
    authorized to levy a tax at a rate of (rate)% for
    expenditures on municipal operations, expenditures on
    public infrastructure, or property tax relief?
    If a majority of the electors in the municipality voting
upon the question vote in the affirmative, such tax shall be
imposed.
    An ordinance or resolution imposing the tax of not more
than 1% hereunder or discontinuing the same shall be adopted
and a certified copy thereof, together with a certification
that the ordinance or resolution received referendum approval
in the case of the imposition of such tax, filed with the
Department of Revenue, on or before the first day of June,
whereupon the Department shall proceed to administer and
enforce the additional tax or to discontinue the tax, as the
case may be, as of the first day of September next following
such adoption and filing. Beginning January 1, 1992, an
ordinance or resolution imposing or discontinuing the tax
hereunder shall be adopted and a certified copy thereof filed
with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing or discontinuing the tax
hereunder shall be adopted and a certified copy thereof filed
with the Department on or before the first day of October,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of January next
following such adoption and filing. Beginning October 1, 2002,
an ordinance or resolution imposing or discontinuing the tax
under this Section or effecting a change in the rate of tax
must either (i) be adopted and a certified copy of the
ordinance or resolution filed with the Department on or before
the first day of April, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
July next following the adoption and filing; or (ii) be adopted
and a certified copy of the ordinance or resolution filed with
the Department on or before the first day of October, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of January next following the
adoption and filing.
    Notwithstanding any provision in this Section to the
contrary, if, in a non-home rule municipality with more than
150,000 but fewer than 200,000 inhabitants, as determined by
the last preceding federal decennial census, an ordinance or
resolution under this Section imposes or discontinues a tax or
changes the tax rate as of July 1, 2007, then that ordinance or
resolution, together with a certification that the ordinance or
resolution received referendum approval in the case of the
imposition of the tax, must be adopted and a certified copy of
that ordinance or resolution must be filed with the Department
on or before May 15, 2007, whereupon the Department shall
proceed to administer and enforce this Section as of July 1,
2007.
    Notwithstanding any provision in this Section to the
contrary, if, in a non-home rule municipality with more than
6,500 but fewer than 7,000 inhabitants, as determined by the
last preceding federal decennial census, an ordinance or
resolution under this Section imposes or discontinues a tax or
changes the tax rate on or before May 20, 2009, then that
ordinance or resolution, together with a certification that the
ordinance or resolution received referendum approval in the
case of the imposition of the tax, must be adopted and a
certified copy of that ordinance or resolution must be filed
with the Department on or before May 20, 2009, whereupon the
Department shall proceed to administer and enforce this Section
as of July 1, 2009.
    A non-home rule municipality may file a certified copy of
an ordinance or resolution, with a certification that the
ordinance or resolution received referendum approval in the
case of the imposition of the tax, with the Department of
Revenue, as required under this Section, only after October 2,
2000.
    The tax authorized by this Section may not be more than 1%
and may be imposed only in 1/4% increments.
(Source: P.A. 95-8, eff. 6-29-07; 96-10, eff. 5-20-09.)
 
    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)
    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
Occupation Tax Act. The corporate authorities of a non-home
rule municipality may impose a tax upon all persons engaged in
the business of selling tangible personal property, other than
on an item of tangible personal property which is titled and
registered by an agency of this State's Government, at retail
in the municipality for expenditure on public infrastructure or
for property tax relief or both as defined in Section 8-11-1.2
if approved by referendum as provided in Section 8-11-1.1, of
the gross receipts from such sales made in the course of such
business. If the tax is approved by referendum on or after the
effective date of this amendatory Act of the 96th General
Assembly, the corporate authorities of a non-home rule
municipality may, until December 31, 2015, use the proceeds of
the tax for expenditure on municipal operations, in addition to
or in lieu of any expenditure on public infrastructure or for
property tax relief. The tax imposed may not be more than 1%
and may be imposed only in 1/4% increments. The tax may not be
imposed on the sale of food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and
insulin, urine testing materials, syringes, and needles used by
diabetics. 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 shall permit such retailer 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 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in
respect to all provisions therein other than the State rate of
tax), 2c, 3 (except as to the disposition of taxes and
penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act as fully as if those provisions were
set forth herein.
    No municipality may impose a tax under this Section unless
the municipality also imposes a tax at the same rate under
Section 8-11-1.4 of this Code.
    Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their seller's 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 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 non-home rule municipal retailers'
occupation 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
retailers 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 plus an
amount the Department determines is necessary to offset any
amounts which were erroneously paid to a different taxing body,
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, and not including any amount which
the Department determines is necessary to offset any amounts
which were payable to a different taxing body but were
erroneously paid to the municipality. Within 10 days after
receipt, by the Comptroller, of the disbursement certification
to the municipalities, 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.
    For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale, by a producer of coal
or other mineral mined in Illinois, is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to coal
or other mineral when it is delivered or shipped by the seller
to the purchaser at a point outside Illinois so that the sale
is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
    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.
    When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease such amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a misallocation is discovered.
    The Department of Revenue shall implement this amendatory
Act of the 91st General Assembly so as to collect the tax on
and after January 1, 2002.
    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
"Non-Home Rule Municipal Retailers' Occupation Tax Act".
(Source: P.A. 94-679, eff. 1-1-06.)
 
    (65 ILCS 5/8-11-1.4)  (from Ch. 24, par. 8-11-1.4)
    Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
Tax Act. The corporate authorities of a non-home rule
municipality may impose a tax upon all persons engaged, in such
municipality, in the business of making sales of service for
expenditure on public infrastructure or for property tax relief
or both as defined in Section 8-11-1.2 if approved by
referendum as provided in Section 8-11-1.1, of the selling
price of all tangible personal property transferred by such
servicemen either in the form of tangible personal property or
in the form of real estate as an incident to a sale of service.
If the tax is approved by referendum on or after the effective
date of this amendatory Act of the 96th General Assembly, the
corporate authorities of a non-home rule municipality may,
until December 31, 2015, use the proceeds of the tax for
expenditure on municipal operations, in addition to or in lieu
of any expenditure on public infrastructure or for property tax
relief. The tax imposed may not be more than 1% and may be
imposed only in 1/4% increments. The tax may not be imposed on
the sale of food for human consumption that is to be consumed
off the premises where it is sold (other than alcoholic
beverages, soft drinks, and food that has been prepared for
immediate consumption) and prescription and nonprescription
medicines, drugs, medical appliances, and insulin, urine
testing materials, syringes, and needles used by diabetics. 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 Service Occupation Tax Act shall permit such
registrant 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 1a-1, 2, 2a, 3 through 3-50 (in
respect to all provisions therein other than the State rate of
tax), 4 (except that the reference to the State shall be to the
taxing municipality), 5, 7, 8 (except that the jurisdiction to
which the tax shall be a debt to the extent indicated in that
Section 8 shall be the taxing municipality), 9 (except as to
the disposition of taxes and penalties collected, and except
that the returned merchandise credit for this municipal tax may
not be taken against any State tax), 10, 11, 12 (except the
reference therein to Section 2b of the Retailers' Occupation
Tax Act), 13 (except that any reference to the State shall mean
the taxing municipality), the first paragraph of Section 15,
16, 17, 18, 19 and 20 of the Service Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
    No municipality may impose a tax under this Section unless
the municipality also imposes a tax at the same rate under
Section 8-11-1.3 of this Code.
    Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their serviceman's 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
servicemen are authorized to collect under the Service 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 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 retailers' occupation 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
suppliers and servicemen 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. 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.
    The Department of Revenue shall implement this amendatory
Act of the 91st General Assembly so as to collect the tax on
and after January 1, 2002.
    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.
    As used in this Section, "municipal" or "municipality"
means or refers to 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
"Non-Home Rule Municipal Service Occupation Tax Act".
(Source: P.A. 94-679, eff. 1-1-06.)
 
    (65 ILCS 5/8-11-1.5)  (from Ch. 24, par. 8-11-1.5)
    Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The
corporate authorities of a non-home rule municipality may
impose a tax upon the privilege of using, in such municipality,
any item of tangible personal property which is purchased at
retail from a retailer, and which is titled or registered with
an agency of this State's government, based on the selling
price of such tangible personal property, as "selling price" is
defined in the Use Tax Act, for expenditure on public
infrastructure or for property tax relief or both as defined in
Section 8-11-1.2, if approved by referendum as provided in
Section 8-11-1.1. If the tax is approved by referendum on or
after the effective date of this amendatory Act of the 96th
General Assembly, the corporate authorities of a non-home rule
municipality may, until December 31, 2015, use the proceeds of
the tax for expenditure on municipal operations, in addition to
or in lieu of any expenditure on public infrastructure or for
property tax relief. The tax imposed may not be more than 1%
and may be imposed only in 1/4% increments. Such tax shall be
collected from persons whose Illinois address for title or
registration purposes is given as being in such municipality.
Such tax shall be collected by the municipality imposing such
tax. A non-home rule municipality may not impose and collect
the tax prior to January 1, 2002.
    This Section shall be known and may be cited as the
"Non-Home Rule Municipal Use Tax Act".
(Source: P.A. 94-679, eff. 1-1-06.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 7/14/2010