Bill Text: IL HB1639 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Illinois Municipal Code. Makes a technical change in a Section concerning a non-home rule municipal service occupation tax.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2009-04-03 - Rule 19(a) / Re-referred to Rules Committee [HB1639 Detail]

Download: Illinois-2009-HB1639-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB1639 Introduced 2/18/2009, by Rep. Michael J. Madigan - Barbara Flynn Currie - Paul D. Froehlich SYNOPSIS AS INTRODUCED:
65 ILCS 5/8-11-1.4 from Ch. 24, par. 8-11-1.4
Amends the Illinois Municipal Code. Makes a technical change in a Section concerning a non-home rule municipal service occupation tax.
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A BILL FOR
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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 Section 8-11-1.4 as follows:
(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 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.
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

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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

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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,

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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.

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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.)