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| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB0779 Introduced , by Rep. Michael J. Madigan SYNOPSIS AS INTRODUCED:
| | 65 ILCS 5/8-11-1 | from Ch. 24, par. 8-11-1 |
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Amends the Home Rule Municipal Retailers' Occupation Tax Act in the Illinois
Municipal Code. Makes a technical change in a Section authorizing the imposition of the tax.
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| | A BILL FOR |
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| | HB0779 | | LRB099 04592 AWJ 24620 b |
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| 1 | | AN ACT concerning local government.
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| 2 | | Be it enacted by the People of the State of Illinois, |
| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The Illinois Municipal Code is amended by |
| 5 | | changing Section 8-11-1 as follows:
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| 6 | | (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
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| 7 | | Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax |
| 8 | | Act. The
The
corporate authorities of a home rule municipality |
| 9 | | may
impose a tax upon all persons engaged in the business of |
| 10 | | selling tangible
personal property, other than an item of |
| 11 | | tangible personal property titled
or registered with an agency |
| 12 | | of this State's government, at retail in the
municipality on |
| 13 | | the gross receipts from these sales made in
the course of such |
| 14 | | business. If imposed, the tax shall only
be imposed in 1/4% |
| 15 | | increments. On and after September 1, 1991, this
additional tax |
| 16 | | may not be imposed on the sales of food for human
consumption |
| 17 | | that is to be consumed off the premises where it
is sold (other |
| 18 | | than alcoholic beverages, soft drinks and food that has
been |
| 19 | | prepared for immediate consumption) and prescription and
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| 20 | | nonprescription medicines, drugs, medical appliances and |
| 21 | | insulin, urine
testing materials, syringes and needles used by |
| 22 | | diabetics. The tax imposed
by a home rule municipality under |
| 23 | | this Section and all
civil penalties that may be assessed as an |
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| 1 | | incident of the tax shall
be collected and enforced by the |
| 2 | | State Department of
Revenue. The certificate of registration |
| 3 | | that is issued by
the Department to a retailer under the |
| 4 | | Retailers' Occupation Tax Act
shall permit the retailer to |
| 5 | | engage in a business that is taxable
under any ordinance or |
| 6 | | resolution enacted pursuant to
this Section without |
| 7 | | registering separately with the Department under such
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| 8 | | ordinance or resolution or under this Section. The Department |
| 9 | | shall have
full power to administer and enforce this Section; |
| 10 | | to collect all taxes and
penalties due hereunder; to dispose of |
| 11 | | taxes and penalties so collected in
the manner hereinafter |
| 12 | | provided; and to determine all rights to
credit memoranda |
| 13 | | arising on account of the erroneous payment of tax or
penalty |
| 14 | | hereunder. In the administration of, and compliance with, this
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| 15 | | Section the Department and persons who are subject to this |
| 16 | | Section shall
have the same rights, remedies, privileges, |
| 17 | | immunities, powers and duties,
and be subject to the same |
| 18 | | conditions, restrictions, limitations, penalties
and |
| 19 | | definitions of terms, and employ the same modes of procedure, |
| 20 | | as are
prescribed in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, |
| 21 | | 1m, 1n, 2 through
2-65 (in
respect to all provisions therein |
| 22 | | other than the State rate of tax), 2c, 3
(except as to the |
| 23 | | disposition of taxes and penalties collected), 4, 5, 5a,
5b, |
| 24 | | 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, |
| 25 | | 10, 11,
12 and 13 of the Retailers' Occupation Tax Act and |
| 26 | | Section 3-7 of the
Uniform Penalty and Interest Act, as fully |
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| 1 | | as if those provisions were
set forth herein. |
| 2 | | No tax may be imposed by a home rule municipality under |
| 3 | | this Section
unless the municipality also imposes a tax at the |
| 4 | | same rate under Section
8-11-5 of this Act.
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| 5 | | Persons subject to any tax imposed under the authority |
| 6 | | granted in this
Section may reimburse themselves for their |
| 7 | | seller's tax liability hereunder
by separately stating that tax |
| 8 | | as an additional charge, which charge may be
stated in |
| 9 | | combination, in a single amount, with State tax which sellers |
| 10 | | are
required to collect under the Use Tax Act, pursuant to such |
| 11 | | bracket
schedules as the Department may prescribe.
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| 12 | | Whenever the Department determines that a refund should be |
| 13 | | made under
this Section to a claimant instead of issuing a |
| 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 the notification |
| 17 | | from the Department. The refund shall be paid by the
State |
| 18 | | Treasurer out of the home rule municipal retailers' occupation |
| 19 | | tax fund.
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| 20 | | The Department shall immediately pay over to the State
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| 21 | | Treasurer, ex officio, as trustee, all taxes and penalties |
| 22 | | collected
hereunder. |
| 23 | | As soon as possible after the first day of each month, |
| 24 | | beginning January 1, 2011, upon certification of the Department |
| 25 | | of Revenue, the Comptroller shall order transferred, and the |
| 26 | | Treasurer shall transfer, to the STAR Bonds Revenue Fund the |
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| 1 | | local sales tax increment, as defined in the Innovation |
| 2 | | Development and Economy Act, collected under this Section |
| 3 | | during the second preceding calendar month for sales within a |
| 4 | | STAR bond district. |
| 5 | | After the monthly transfer to the STAR Bonds Revenue Fund, |
| 6 | | on or before the 25th day of each calendar month, the
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| 7 | | Department shall prepare and certify to the Comptroller the |
| 8 | | disbursement of
stated sums of money to named municipalities, |
| 9 | | the municipalities to be
those from which retailers have paid |
| 10 | | taxes or penalties hereunder to the
Department during the |
| 11 | | second preceding calendar month. The amount to be
paid to each |
| 12 | | municipality shall be the amount (not including credit
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| 13 | | memoranda) collected hereunder during the second preceding |
| 14 | | calendar month
by the Department plus an amount the Department |
| 15 | | determines is necessary to
offset any amounts that were |
| 16 | | erroneously paid to a different
taxing body, and not including |
| 17 | | an amount equal to the amount of refunds
made during the second |
| 18 | | preceding calendar month by the Department on
behalf of such |
| 19 | | municipality, and not including any amount that the Department
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| 20 | | determines is necessary to offset any amounts that were payable |
| 21 | | to a
different taxing body but were erroneously paid to the |
| 22 | | municipality, and not including any amounts that are |
| 23 | | transferred to the STAR Bonds Revenue Fund. Within
10 days |
| 24 | | after receipt by the Comptroller of the disbursement |
| 25 | | certification
to the municipalities provided for in this |
| 26 | | Section to be given to the
Comptroller by the Department, the |
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| 1 | | Comptroller shall cause the orders to be
drawn for the |
| 2 | | respective amounts in accordance with the directions
contained |
| 3 | | in the certification.
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| 4 | | In addition to the disbursement required by the preceding |
| 5 | | paragraph and
in order to mitigate delays caused by |
| 6 | | distribution procedures, an
allocation shall, if requested, be |
| 7 | | made within 10 days after January 14,
1991, and in November of |
| 8 | | 1991 and each year thereafter, to each
municipality that |
| 9 | | received more than $500,000 during the preceding fiscal
year, |
| 10 | | (July 1 through June 30) whether collected by the municipality |
| 11 | | or
disbursed by the Department as required by this Section. |
| 12 | | Within 10 days
after January 14, 1991, participating |
| 13 | | municipalities shall notify the
Department in writing of their |
| 14 | | intent to participate. In addition, for the
initial |
| 15 | | distribution, participating municipalities shall certify to |
| 16 | | the
Department the amounts collected by the municipality for |
| 17 | | each month under
its home rule occupation and service |
| 18 | | occupation tax during the period July
1, 1989 through June 30, |
| 19 | | 1990. The allocation within 10 days after January
14, 1991, |
| 20 | | shall be in an amount equal to the monthly average of these
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| 21 | | amounts, excluding the 2 months of highest receipts. The |
| 22 | | monthly average
for the period of July 1, 1990 through June 30, |
| 23 | | 1991 will be determined as
follows: the amounts collected by |
| 24 | | the municipality under its home rule
occupation and service |
| 25 | | occupation tax during the period of July 1, 1990
through |
| 26 | | September 30, 1990, plus amounts collected by the Department |
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| 1 | | and
paid to such municipality through June 30, 1991, excluding |
| 2 | | the 2 months of
highest receipts. The monthly average for each |
| 3 | | subsequent period of July 1
through June 30 shall be an amount |
| 4 | | equal to the monthly distribution made
to each such |
| 5 | | municipality under the preceding paragraph during this period,
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| 6 | | excluding the 2 months of highest receipts. The distribution |
| 7 | | made in
November 1991 and each year thereafter under this |
| 8 | | paragraph and the
preceding paragraph shall be reduced by the |
| 9 | | amount allocated and disbursed
under this paragraph in the |
| 10 | | preceding period of July 1 through June 30.
The Department |
| 11 | | shall prepare and certify to the Comptroller for
disbursement |
| 12 | | the allocations made in accordance with this paragraph.
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| 13 | | For the purpose of determining the local governmental unit |
| 14 | | whose tax
is applicable, a retail sale by a producer of coal or |
| 15 | | other mineral
mined in Illinois is a sale at retail at the |
| 16 | | place where the coal or
other mineral mined in Illinois is |
| 17 | | extracted from the earth. This
paragraph does not apply to coal |
| 18 | | or other mineral when it is delivered
or shipped by the seller |
| 19 | | to the purchaser at a point outside Illinois so
that the sale |
| 20 | | is exempt under the United States Constitution as a sale in
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| 21 | | interstate or foreign commerce.
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| 22 | | Nothing in this Section shall be construed to authorize a
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| 23 | | municipality to impose a tax upon the privilege of engaging in |
| 24 | | any
business which under the Constitution of the United States |
| 25 | | may not be
made the subject of taxation by this State.
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| 26 | | An ordinance or resolution imposing or discontinuing a tax |
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| 1 | | hereunder or
effecting a change in the rate thereof shall be |
| 2 | | adopted and a certified
copy thereof filed with the Department |
| 3 | | on or before the first day of June,
whereupon the Department |
| 4 | | shall proceed to administer and enforce this
Section as of the |
| 5 | | first day of September next following the
adoption and filing. |
| 6 | | Beginning January 1, 1992, an ordinance or resolution
imposing |
| 7 | | or discontinuing the tax hereunder or effecting a change in the
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| 8 | | rate thereof shall be adopted and a certified copy thereof |
| 9 | | filed with the
Department on or before the first day of July, |
| 10 | | whereupon the Department
shall proceed to administer and |
| 11 | | enforce this Section as of the first day of
October next |
| 12 | | following such adoption and filing. Beginning January 1, 1993,
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| 13 | | an ordinance or resolution imposing or discontinuing the tax |
| 14 | | hereunder or
effecting a change in the rate thereof shall be |
| 15 | | adopted and a certified
copy thereof filed with the Department |
| 16 | | on or before the first day of
October, whereupon the Department |
| 17 | | shall proceed to administer and enforce
this Section as of the |
| 18 | | first day of January next following the
adoption and filing.
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| 19 | | However, a municipality located in a county with a population |
| 20 | | in excess of
3,000,000 that elected to become a home rule unit |
| 21 | | at the general primary
election in
1994 may adopt an ordinance |
| 22 | | or resolution imposing the tax under this Section
and file a |
| 23 | | certified copy of the ordinance or resolution with the |
| 24 | | Department on
or before July 1, 1994. The Department shall then |
| 25 | | proceed to administer and
enforce this Section as of October 1, |
| 26 | | 1994.
Beginning April 1, 1998, an ordinance or
resolution |
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| 1 | | imposing or
discontinuing the tax hereunder or effecting a |
| 2 | | change in the rate thereof shall
either (i) be adopted and a |
| 3 | | certified copy thereof filed with the Department on
or
before |
| 4 | | the first day of April, whereupon the Department shall proceed |
| 5 | | to
administer and enforce this Section as of the first day of |
| 6 | | July next following
the adoption and filing; or (ii) be adopted |
| 7 | | and a certified copy thereof filed
with the Department on or |
| 8 | | before the first day of October, whereupon the
Department shall |
| 9 | | proceed to administer and enforce this Section as of the first
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| 10 | | day of January next following the adoption and filing.
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| 11 | | When certifying the amount of a monthly disbursement to a |
| 12 | | municipality
under this Section, the Department shall increase |
| 13 | | or decrease the amount by
an amount necessary to offset any |
| 14 | | misallocation of previous disbursements.
The offset amount |
| 15 | | shall be the amount erroneously disbursed
within the previous 6 |
| 16 | | months from the time a misallocation is discovered.
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| 17 | | Any unobligated balance remaining in the Municipal |
| 18 | | Retailers' Occupation
Tax Fund on December 31, 1989, which fund |
| 19 | | was abolished by Public Act
85-1135, and all receipts of |
| 20 | | municipal tax as a result of audits of
liability periods prior |
| 21 | | to January 1, 1990, shall be paid into the Local
Government Tax |
| 22 | | Fund for distribution as provided by this Section prior to
the |
| 23 | | enactment of Public Act 85-1135. All receipts of municipal tax |
| 24 | | as a
result of an assessment not arising from an audit, for |
| 25 | | liability periods
prior to January 1, 1990, shall be paid into |
| 26 | | the Local Government Tax Fund
for distribution before July 1, |
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| 1 | | 1990, as provided by this Section prior to
the enactment of |
| 2 | | Public Act 85-1135; and on and after July 1,
1990, all such |
| 3 | | receipts shall be distributed as provided in Section
6z-18 of |
| 4 | | the State Finance Act.
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| 5 | | As used in this Section, "municipal" and "municipality" |
| 6 | | means a city,
village or incorporated town, including an |
| 7 | | incorporated town that has
superseded a civil township.
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| 8 | | This Section shall be known and may be cited as the Home |
| 9 | | Rule Municipal
Retailers' Occupation Tax Act.
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| 10 | | (Source: P.A. 96-939, eff. 6-24-10.)
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