Public Act 098-1049
 
SB3447 EnrolledLRB098 19712 HLH 54923 b


  
    AN ACT concerning revenue.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  
 
 
    Section 5. The Counties Code is amended  by changing Section 
5-1035.1 as follows:
 


    (55 ILCS 5/5-1035.1)  (from Ch. 34, par. 5-1035.1)




    Sec. 5-1035.1. County Motor Fuel Tax Law. The county board 
of the
counties of DuPage, Kane and McHenry may, by an 
ordinance or resolution
adopted by an affirmative vote of a 
majority of the members elected or
appointed to the county 
board, impose a tax upon all persons engaged in the
county in 
the business of selling motor fuel, as now or hereafter defined

in the Motor Fuel Tax Law, at retail for the operation of motor 
vehicles
upon public highways or for the operation of 
recreational watercraft upon
waterways. Kane County may exempt 
diesel fuel from the tax imposed pursuant
to this Section.  The 
tax may be imposed, in half-cent increments, at a
rate  not  
exceeding 4 cents per gallon of motor fuel sold at retail 
within
the county for the purpose of use or consumption and not 
for the purpose of
resale. The proceeds from the tax shall be 
used by the county solely for
the purpose of operating, 
constructing and improving public highways and
waterways, and 
acquiring real property and right-of-ways for public
highways 
and waterways within the county imposing the tax.

    A tax imposed pursuant to this Section, and all civil 
penalties that may
be assessed as an incident thereof, shall be 
administered, collected and
enforced by the Illinois 
Department of Revenue in the same manner as the
tax imposed 
under the Retailers' Occupation Tax Act, as now or hereafter

amended, insofar as may be practicable; except that in the 
event of a
conflict with the provisions of this Section, this 
Section shall control.
The Department of Revenue 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.

    Whenever the Department determines that a refund shall 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 the notification 
from the Department. The refund shall be paid by
the State 
Treasurer out of the County Option Motor Fuel Tax Fund.

    The Department shall forthwith pay over to the State 
Treasurer,
ex-officio, as trustee, all taxes and penalties 
collected hereunder, which
shall be deposited into the County 
Option Motor Fuel Tax Fund, a special
fund in the State 
Treasury which is hereby created. On or before the 25th
day of 
each calendar month, the Department shall prepare and certify 
to the
State Comptroller the disbursement of stated sums of 
money to named
counties for which taxpayers have paid taxes or 
penalties hereunder to the
Department during the second 
preceding calendar month. The amount to be
paid to each county 
shall be the amount (not including credit memoranda)
collected 
hereunder from retailers within the county during the second

preceding calendar month by the Department, but not including 
an amount
equal to the amount of refunds made during the second 
preceding calendar
month by the Department on behalf of the 
county;
less
2% of the balance, which sum shall be retained by 
the State Treasurer to cover the costs incurred by the 
Department in administering and enforcing the provisions of 
this Section.  The Department, at the time of each monthly 
disbursement to the counties, shall prepare and certify to the 
Comptroller the amount so retained by the State Treasurer, 
which shall be transferred into the Tax Compliance and 
Administration Fund the amount expended during the second 
preceding month by the Department
pursuant to appropriation 
from the County Option Motor Fuel Tax Fund for
the 
administration and enforcement of this Section, which 
appropriation
shall not exceed $200,000 for fiscal year 1990 
and, for each year
thereafter, shall not exceed 2% of the 
amount deposited into the County
Option Motor Fuel Tax Fund 
during the preceding fiscal year.
    A county may direct, by ordinance, that all or a portion of 
the taxes and penalties collected under the County Option Motor 
Fuel Tax  shall be deposited into the Transportation Development 
Partnership Trust Fund. 

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

    An ordinance or resolution imposing a tax hereunder or 
effecting a
change in the rate thereof shall be effective on 
the first day of the second
calendar month next following the 
month in which the ordinance or
resolution is adopted and a 
certified copy thereof is filed with the
Department of Revenue,  
whereupon the Department of Revenue shall proceed
to administer 
and enforce this Section on behalf of the county as of the

effective date of the ordinance or resolution. Upon a change in 
rate of a
tax levied hereunder, or upon the discontinuance of 
the tax, the county
board of the county shall, on or not later 
than 5 days after the effective
date of the ordinance or 
resolution discontinuing the tax or effecting a
change in rate, 
transmit to the Department of Revenue a certified copy of
the 
ordinance or resolution effecting the change or 
discontinuance.

    This Section shall be known and may be cited as the County 
Motor Fuel
Tax Law.

(Source: P.A. 96-845, eff. 7-1-12.)

 
    Section 10. The Illinois Municipal Code is amended  by 
changing Section 8-11-6 as follows:
 



    (65 ILCS 5/8-11-6)  (from Ch. 24, par. 8-11-6)



    Sec. 8-11-6. Home Rule Municipal Use Tax Act. 

    (a) The corporate authorities of a 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 at a location within the corporate limits of
such 
home rule municipality with an agency of this State's 
government, at a
rate which is an increment of 1/4% and based 
on the selling price of such
tangible personal property, as 
"selling price" is defined in the Use Tax
Act. In home rule 
municipalities with less than 2,000,000 inhabitants, the
tax 
shall be collected by the municipality imposing the tax from 
persons
whose Illinois address for titling or registration 
purposes is given as
being in such municipality.

    (b) In home rule municipalities with 2,000,000 or more 
inhabitants, the
corporate authorities of the municipality may 
additionally impose a tax
beginning July 1, 1991 upon the 
privilege of using in the
municipality, any item of tangible 
personal property, other than tangible
personal property 
titled or registered with an agency of the State's
government, 
that is purchased at retail from a retailer located outside the

corporate limits of the municipality, at a rate that is an 
increment of
1/4% not to exceed 1% and based on the selling 
price of the tangible
personal property, as "selling price" is 
defined in the Use Tax Act.  Such
tax shall be collected from 
the purchaser either by the municipality imposing
such tax or 
by the Department of Revenue pursuant to an agreement between 
the
Department and the municipality.

    To prevent multiple home rule taxation, the use in a home 
rule
municipality of tangible personal property that is 
acquired outside the
municipality and caused to be brought into 
the municipality by a person who
has already paid a home rule 
municipal tax in another municipality in
respect to the sale, 
purchase, or use of that property, shall be exempt to
the 
extent of the amount of the tax properly due and paid in the 
other home
rule municipality.

    (c) If a municipality having 2,000,000 or more inhabitants 
imposes the
tax authorized by subsection (a),
then the tax 
shall be collected by the Illinois Department of Revenue when

the property is purchased at retail from a retailer in the 
county in which
the home rule municipality imposing the tax is 
located, and in all
contiguous counties.  The tax shall be 
remitted to the State, or an
exemption determination must be 
obtained from the Department before the
title or certificate of 
registration for the property may be issued.  The
tax or proof 
of exemption may be transmitted to the Department by way of
the 
State agency with which, or State officer with whom, the 
tangible
personal property must be titled or registered if the 
Department and that
agency or State officer determine that this 
procedure will expedite the
processing of applications for 
title or registration.

    The Department shall have full power to administer and 
enforce this
Section to collect all taxes, penalties and 
interest due hereunder, to
dispose of taxes, penalties and 
interest so collected in the manner
hereinafter provided, and 
determine all rights to credit memoranda or
refunds arising on 
account of the erroneous payment of tax, penalty or
interest 
hereunder.  In the administration of and compliance with this

Section the Department and persons who are subject to this 
Section shall
have the same rights, remedies, privileges, 
immunities, powers and duties,
and be subject to the same 
conditions, restrictions, limitations, penalties
and 
definitions of terms, and employ the same modes of procedure as 
are
prescribed in Sections 2 (except the definition of 
"retailer maintaining a
place of business in this State"), 3 
(except provisions pertaining to the
State rate of tax, and 
except provisions concerning collection or refunding
of the tax 
by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22 of the 
Use Tax Act, which are not inconsistent with
this Section, as 
fully as if provisions contained in those Sections of the
Use 
Tax Act were set forth herein.

    Whenever the Department determines that a refund shall 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 home rule municipal retailers' occupation 
tax fund.

    The Department shall forthwith pay over to the State 
Treasurer, ex
officio, as trustee, all taxes, penalties and 
interest collected hereunder.
 On or before the 25th day of each 
calendar month, the Department shall
prepare and certify to the 
State Comptroller the disbursement of stated
sums of money to 
named municipalities, the municipality in each instance to
be 
that municipality from which the Department during the second 
preceding
calendar month, collected municipal use tax from any 
person whose Illinois
address for titling or registration 
purposes is given as being in such
municipality.  The amount to 
be paid to each
municipality shall be the amount (not including 
credit memoranda) collected
hereunder during the second 
preceding calendar month by the Department, and
not including 
an amount equal to the amount of refunds made during the
second 
preceding calendar month by the Department on behalf of such

municipality, less 2% of the balance, which sum shall be 
retained by the State Treasurer to cover the costs incurred by 
the Department in administering and enforcing the provisions of 
this Section.  The Department, at the time of each monthly 
disbursement to the municipalities, shall prepare and certify 
to the Comptroller the amount so retained by the State 
Treasurer, which shall be transferred into the Tax Compliance 
and Administration Fund the amount expended during the second 
preceding month
by the Department to be paid from the 
appropriation to the Department
from the Home Rule Municipal 
Retailers' Occupation Tax Trust Fund.  The
appropriation to 
cover the costs incurred by the Department in administering
and 
enforcing this Section shall not exceed 2% of the amount 
estimated to be
deposited into the Home Rule Municipal 
Retailers' Occupation Tax Trust Fund
during the fiscal year for 
which the appropriation is made.  Within 10 days
after receipt 
by the State Comptroller of the disbursement certification to

the municipalities provided for in this Section to be given to 
the State
Comptroller by the Department,
the State Comptroller 
shall cause the orders to be drawn for the respective
amounts 
in accordance with the directions contained in that 
certification.

    Any ordinance imposing or discontinuing any tax to be 
collected and
enforced by the Department under this Section 
shall
be adopted and a certified copy thereof filed with the 
Department on or
before October 1, whereupon the Department of 
Revenue shall proceed to
administer and enforce this Section on 
behalf of the municipalities as of
January 1 next following 
such adoption and filing.  Beginning April 1, 1998,
any 
ordinance imposing or discontinuing any tax to be collected and 
enforced
by the Department under this Section shall either (i) 
be adopted and a
certified copy thereof filed with the 
Department on or before April 1,
whereupon the Department of 
Revenue shall proceed to administer and enforce
this Section on 
behalf of the municipalities as of July 1 next following the

adoption and filing; or (ii) be adopted and a certified copy 
thereof filed
with the Department on or before October 1, 
whereupon the Department of
Revenue shall proceed to administer 
and enforce this Section on behalf of
the municipalities as of 
January 1 next following the adoption and filing.

    Nothing in this subsection (c) shall prevent a home rule 
municipality
from collecting the tax pursuant to subsection (a) 
in any situation where
such tax is not collected by the 
Department of Revenue under this subsection
(c).

    (d) Any unobligated balance remaining in the Municipal 
Retailers'
Occupation Tax Fund on December 31, 1989, which fund 
was abolished by Public
Act 85-1135, and all receipts of 
municipal tax as a result of audits of
liability periods prior 
to January 1, 1990, shall be paid into the Local
Government Tax 
Fund, for distribution as provided by this Section prior to
the 
enactment of Public Act 85-1135. All receipts of municipal tax 
as a
result of an assessment not arising from an audit, for 
liability periods
prior to January 1, 1990, shall be paid into 
the Local Government Tax Fund
for distribution before July 1, 
1990, as provided by this Section prior to
the enactment of 
Public Act 85-1135, and on and after July 1, 1990, all
such 
receipts shall be distributed as provided in Section 6z-18 of 
the
State Finance Act.

    (e) 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.

    (f) This Section shall be known and may be cited as the 
Home Rule
Municipal Use Tax Act.

(Source: P.A. 91-51, eff. 6-30-99; 92-221, eff. 8-2-01; 92-844, 
eff.
8-23-02; 92-846, eff. 8-23-02.)

 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law. 
  


Effective Date:  8/25/2014