Bill Text: IL HB0991 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Municipal Code. Provides that the rate of tax under the Non-Home Rule Municipal Retailers' Occupation Tax Act, the Non-Home Rule Municipal Service Occupation Tax Act, and the Non-Home Rule Municipal Use Tax Act may not exceed 2% (currently, 1%). Provides that the rate of tax that may be imposed for municipal operations may not exceed 1%. With respect to the Non-Home Rule Municipal Retailers' Occupation Tax Act, the Non-Home Rule Municipal Service Occupation Tax Act, and the Non-Home Rule Municipal Use Tax Act, provides that the term "public infrastructure" includes the acquisition, repair, and maintenance of public safety equipment. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2025-01-07 - Session Sine Die [HB0991 Detail]

Download: Illinois-2023-HB0991-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB0991 Introduced , by Rep. Anthony DeLuca SYNOPSIS AS INTRODUCED:
65 ILCS 5/8-11-1.1 from Ch. 24, par. 8-11-1.1
65 ILCS 5/8-11-1.2 from Ch. 24, par. 8-11-1.2
65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3
65 ILCS 5/8-11-1.4 from Ch. 24, par. 8-11-1.4
65 ILCS 5/8-11-1.5 from Ch. 24, par. 8-11-1.5
Amends the Illinois Municipal Code. Provides that the rate of tax under the Non-Home Rule Municipal Retailers' Occupation Tax Act, the Non-Home Rule Municipal Service Occupation Tax Act, and the Non-Home Rule Municipal Use Tax Act may not exceed 2% (currently, 1%). Provides that the rate of tax that may be imposed for municipal operations may not exceed 1%. With respect to the Non-Home Rule Municipal Retailers' Occupation Tax Act, the Non-Home Rule Municipal Service Occupation Tax Act, and the Non-Home Rule Municipal Use Tax Act, provides that the term "public infrastructure" includes the acquisition, repair, and maintenance of public safety equipment. Effective immediately.
LRB103 00050 AWJ 45050 b
A BILL FOR
HB0991 LRB103 00050 AWJ 45050 b
AN ACT concerning revenue.
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, 8-11-1.2, 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 or increase the rate of
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

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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.
Until January 1, 1992, 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 and through December 31, 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

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enforce this Section as of the first day of October next
following such adoption and filing.
Beginning January 1, 1993, and through September 30, 2002,
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, and through December 31, 2013,
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.
Beginning January 1, 2014, if an ordinance or resolution
imposing the tax under this Section, discontinuing the tax
under this Section, or effecting a change in the rate of tax
under this Section is adopted, a certified copy thereof,

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together with a certification that the ordinance or resolution
received referendum approval in the case of the imposition of
or increase in the rate of such tax, shall be filed with the
Department of Revenue, either (i) on or before the first day of
May, 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) 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

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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 2%
1% and may be imposed only in 1/4% increments. The rate of this
tax that may be imposed for municipal operations may not
exceed 1%; therefore, notwithstanding any other provision of
law, if the tax under this Section is imposed at a rate of more
than 1%, then, beginning with the first disbursement to occur
on or after the effective date of the increase, the total
amount that may be used for municipal operations may not
exceed the total amount of the proceeds disbursed to the
municipality under Sections 8-11-1.3, 8-11-1.4, and 8-11-1.5,

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multiplied by a fraction having a numerator of 1 and a
denominator of the rate of tax.
(Source: P.A. 98-584, eff. 8-27-13.)
(65 ILCS 5/8-11-1.2) (from Ch. 24, par. 8-11-1.2)
Sec. 8-11-1.2. Definition. As used in Sections 8-11-1.3,
8-11-1.4 and 8-11-1.5 of this Act:
(a) "Public infrastructure" means municipal roads and
streets, access roads, bridges, and sidewalks; waste disposal
systems; the acquisition, repair, and maintenance of public
safety equipment; and water and sewer line extensions, water
distribution and purification facilities, storm water drainage
and retention facilities, and sewage treatment facilities. For
purposes of referenda authorizing the imposition of taxes by
the City of DuQuoin under Sections 8-11-1.3, 8-11-1.4, and
8-11-1.5 of this Act that are approved in November, 2002, or
for purposes of referenda authorizing the imposition of taxes
by the Village of Forsyth under Sections 8-11-1.3, 8-11-1.4,
and 8-11-1.5 of this Act that are approved after the effective
date of this amendatory Act of the 94th General Assembly,
"public infrastructure" shall also include public schools.
(a-5) "Public safety equipment" means firefighting,
police, rescue, transportation, or communications equipment
used by police departments, fire departments, or other first
responders, including, but not limited to, police vehicles,
fire trucks, surveillance equipment, and body cameras.

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(b) "Property tax relief" means the action of a
municipality to reduce the levy for real estate taxes or avoid
an increase in the levy for real estate taxes that would
otherwise have been required. Property tax relief or the
avoidance of property tax must uniformly apply to all classes
of property.
(Source: P.A. 94-1078, eff. 1-9-07; 95-331, eff. 8-21-07.)
(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 July 14, 2010 (the effective date of Public Act
96-1057), the corporate authorities of a non-home rule
municipality may, until July 1, 2030, 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 2% 1%

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and may be imposed only in 1/4% increments. The rate of this
tax that may be imposed for municipal operations may not
exceed 1%; therefore, notwithstanding any other provision of
law, if the tax under this Section is imposed at a rate of more
than 1%, then, beginning with the first disbursement to occur
on or after the effective date of the increase, the total
amount that may be used for municipal operations may not
exceed the total amount of the proceeds disbursed to the
municipality under this Section, Section 8-11-1.4, and Section
8-11-1.5, multiplied by a fraction having a numerator of 1 and
a denominator of the rate of tax. The tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If a municipality does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. Each municipality must
comply with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Section, "airport-related purposes"
has the meaning ascribed in Section 6z-20.2 of the State
Finance Act. This exclusion for aviation fuel only applies for
so long as the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133 are binding on the municipality. The tax

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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, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject

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to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
5k, 5l, 6, 6a, 6b, 6c, 6d, 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 or the Local Government
Aviation Trust Fund, as appropriate.
Except as otherwise provided, the Department shall

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forthwith pay over to the State Treasurer, ex officio, as
trustee, all taxes and penalties collected hereunder for
deposit into the Non-Home Rule Municipal Retailers' Occupation
Tax Fund. Taxes and penalties collected on aviation fuel sold
on or after December 1, 2019, shall be immediately paid over by
the Department to the State Treasurer, ex officio, as trustee,
for deposit into the Local Government Aviation Trust Fund. The
Department shall only pay moneys into the Local Government
Aviation Trust Fund under this Section for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the municipality.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
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

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municipality shall be the amount (not including credit
memoranda and not including taxes and penalties collected on
aviation fuel sold on or after December 1, 2019) 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, and not including any amounts that
are transferred to the STAR Bonds Revenue Fund, less 1.5% of
the remainder, which the Department shall transfer into the
Tax Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and the Tax Compliance and Administration 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.

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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 Public Act
91-649 so as to collect the tax on and after January 1, 2002.
As used in this Section, "municipal" and "municipality"
mean 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.

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(Source: P.A. 101-10, eff. 6-5-19; 101-47, eff. 1-1-20;
101-81, eff. 7-12-19; 101-604, eff. 12-13-19; 102-700, eff.
4-19-22.)
(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 July 14, 2010
(the effective date of Public Act 96-1057), the corporate
authorities of a non-home rule municipality may, until
December 31, 2020, 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 2% 1% and may be
imposed only in 1/4% increments. The rate of this tax that may
be imposed for municipal operations may not exceed 1%;
therefore, notwithstanding any other provision of law, if the
tax under this Section is imposed at a rate of more than 1%,

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then, beginning with the first disbursement to occur on or
after the effective date of the increase, the total amount
that may be used for municipal operations may not exceed the
total amount of the proceeds disbursed to the municipality
under this Section, Section 8-11-1.3, and Section 8-11-1.5,
multiplied by a fraction having a numerator of 1 and a
denominator of the rate of tax. The tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Service Occupation Tax Act (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If a municipality does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. Each municipality must
comply with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Section, "airport-related purposes"
has the meaning ascribed in Section 6z-20.2 of the State
Finance Act. This exclusion for aviation fuel only applies for
so long as the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133 are binding on the municipality. 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

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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, and except that the

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retailer's discount is not allowed for taxes paid on aviation
fuel that are subject to the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133), 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

HB0991 - 18 - LRB103 00050 AWJ 45050 b
the State Treasurer out of the municipal retailers' occupation
tax fund or the Local Government Aviation Trust Fund, as
appropriate.
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected
hereunder for deposit into the municipal retailers' occupation
tax fund. Taxes and penalties collected on aviation fuel sold
on or after December 1, 2019, shall be immediately paid over by
the Department to the State Treasurer, ex officio, as trustee,
for deposit into the Local Government Aviation Trust Fund. The
Department shall only pay moneys into the Local Government
Aviation Trust Fund under this Section for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the municipality.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the

HB0991 - 19 - LRB103 00050 AWJ 45050 b
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 and not including taxes and
penalties collected on aviation fuel sold on or after December
1, 2019) 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, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities, the General Revenue Fund, and the Tax
Compliance and Administration 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.

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The Department of Revenue shall implement Public Act
91-649 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. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
(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

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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, 2020, 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 2% 1% and may be imposed only in
1/4% increments. The rate of this tax that may be imposed for
municipal operations may not exceed 1%; therefore,
notwithstanding any other provision of law, if the tax under
this Section is imposed at a rate of more than 1%, then,
beginning with the first disbursement to occur on or after the
effective date of the increase, the total amount that may be
used for municipal operations may not exceed the total amount
of the proceeds disbursed to the municipality under this
Section, Section 8-11-1.3, and Section 8-11-1.4, multiplied by
a fraction having a numerator of 1 and a denominator of the
rate of tax. 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".

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(Source: P.A. 96-1057, eff. 7-14-10; 97-837, eff. 7-20-12.)
Section 99. Effective date. This Act takes effect upon
becoming law.