Bill Text: IL HB5543 | 2017-2018 | 100th General Assembly | Introduced
Bill Title: Amends the Illinois Municipal Code. Gives non-home rule municipalities with a population of more than 2,000 the power to exercise all power provided to home rule units under Section 6 of Article VII of the Illinois Constitution, except for the powers to tax, to impose fees, and to incur debt. Provides that a home rule municipal retailer's occupation tax may be imposed up to a 1% increment if the corporate authorities of a home rule municipality by ordinance or resolution call for the submission to the electors of the municipality the question of whether the municipality shall impose such a tax or increase the rate of such a tax (rather than only shall be imposed in 1/4% increments). Effective immediately.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2019-01-08 - Session Sine Die [HB5543 Detail]
Download: Illinois-2017-HB5543-Introduced.html
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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,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Municipal Code is amended by | ||||||||||||||||||||||||||
5 | changing Sections 1-1-10 and 8-11-1 as follows:
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6 | (65 ILCS 5/1-1-10) (from Ch. 24, par. 1-1-10)
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7 | Sec. 1-1-10.
It is the policy of this State that all powers | ||||||||||||||||||||||||||
8 | granted, either
expressly or by necessary implication, by this | ||||||||||||||||||||||||||
9 | Code, by Illinois statute,
or the Illinois Constitution to | ||||||||||||||||||||||||||
10 | municipalities may be exercised
by those municipalities, and | ||||||||||||||||||||||||||
11 | the officers, employees and agents of each
notwithstanding | ||||||||||||||||||||||||||
12 | effects on competition.
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13 | Notwithstanding any provision of law to the contrary, | ||||||||||||||||||||||||||
14 | except for the powers to tax, to impose fees, and to incur | ||||||||||||||||||||||||||
15 | debt, non-home rule municipalities with a population of more | ||||||||||||||||||||||||||
16 | than 2,000 shall exercise all of the powers provided to home | ||||||||||||||||||||||||||
17 | rule units under Section 6 of Article VII of the Illinois | ||||||||||||||||||||||||||
18 | Constitution, subject to the limitations set forth in that | ||||||||||||||||||||||||||
19 | Section. | ||||||||||||||||||||||||||
20 | It is further the policy of this State that home-rule | ||||||||||||||||||||||||||
21 | municipalities,
the officers, employees and agents of each may
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22 | (1) exercise any power and perform any function pertaining to | ||||||||||||||||||||||||||
23 | their government
and affairs or (2) exercise those powers |
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1 | within traditional areas of municipal
activity, except as | ||||||
2 | limited by the Illinois Constitution or a proper limiting
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3 | statute, notwithstanding effects on competition.
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4 | It is the intention of the General Assembly that the "State | ||||||
5 | action exemption"
to the application of federal antitrust | ||||||
6 | statutes be fully available to
all municipalities, and the | ||||||
7 | agents, officers and employees of each
to the extent they are | ||||||
8 | exercising authority as aforesaid, including, but
not limited | ||||||
9 | to, the provisions of Sections 6, 7 and 10 of Article VII of
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10 | the Illinois Constitution or the provisions of the following | ||||||
11 | Illinois
statutes, as each is now in existence or may | ||||||
12 | hereinafter be amended:
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13 | (a) The Illinois Local Library Act; "An Act to provide the | ||||||
14 | manner of
levying or imposing taxes for the provision of | ||||||
15 | special services to areas
within the boundaries of home rule | ||||||
16 | units and non-home rule municipalities
and counties", approved | ||||||
17 | September 21, 1973, as amended; "An Act to
facilitate the | ||||||
18 | development and construction of housing, to provide
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19 | governmental assistance therefor, and to repeal an Act herein | ||||||
20 | named", approved July
2, 1947, as amended; or the Housing | ||||||
21 | Authorities Act, the Housing
Cooperation Law, the Blighted | ||||||
22 | Areas Redevelopment Act of 1947, the Blighted
Vacant Areas | ||||||
23 | Development Act of 1949, the Urban Community Conservation Act,
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24 | the Illinois Enterprise Zone Act or any other power exercised | ||||||
25 | pursuant to
the Intergovernmental Cooperation Act; or
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26 | (b) Divisions 1, 2, 3, 4, 5 and 6 of Article 7 of the |
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1 | Illinois Municipal
Code; Divisions 9, 10 and 11 of Article 8 of | ||||||
2 | the Illinois Municipal Code;
Divisions 1, 2, 3, 4 and 5 of | ||||||
3 | Article 9 of the Illinois Municipal Code; and
all of Divisions | ||||||
4 | of Articles 10 and 11 of the Illinois Municipal Code; or
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5 | (c) Any other Illinois statute or constitutional provision | ||||||
6 | now existing
or which may be enacted in the future, by which | ||||||
7 | any municipality may exercise authority.
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8 | The "State action exemption" for which provision is made by | ||||||
9 | this Section
shall be liberally construed in favor of such | ||||||
10 | municipalities and the
agents, employees and officers thereof, | ||||||
11 | and such exemption shall be
available notwithstanding that the | ||||||
12 | action of the municipality or its
agents, officers or employees
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13 | constitutes an irregular exercise of constitutional or | ||||||
14 | statutory powers.
However, this exemption shall not apply where | ||||||
15 | the action alleged to be in
violation of antitrust law exceeds | ||||||
16 | either (1) powers granted, either
expressly or by necessary | ||||||
17 | implication, by Illinois statute or the Illinois
Constitution | ||||||
18 | or (2) powers granted to a home rule municipality to perform
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19 | any function pertaining to its government and affairs or to act | ||||||
20 | within
traditional areas of municipal activity, except as | ||||||
21 | limited by the Illinois
Constitution or a proper limiting | ||||||
22 | statute.
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23 | Notwithstanding the foregoing, where it is alleged that a | ||||||
24 | violation of
the antitrust laws has occurred, the relief | ||||||
25 | available to the plaintiffs
shall be limited to an injunction | ||||||
26 | which enjoins the alleged activity.
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1 | Nothing in this Section is intended to prohibit or limit | ||||||
2 | any cause of
action other than under an antitrust theory.
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3 | (Source: P.A. 84-1050.)
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4 | (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
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5 | Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax | ||||||
6 | Act. The
corporate authorities of a home rule municipality may
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7 | impose a tax upon all persons engaged in the business of | ||||||
8 | selling tangible
personal property, other than an item of | ||||||
9 | tangible personal property titled
or registered with an agency | ||||||
10 | of this State's government, at retail in the
municipality on | ||||||
11 | the gross receipts from these sales made in
the course of such | ||||||
12 | business. If imposed, the tax shall only
be imposed in 1/4% | ||||||
13 | increments or up to a 1% increment if the corporate authorities | ||||||
14 | of a home rule municipality by ordinance or resolution call for | ||||||
15 | the submission to the electors, through referendum, of the | ||||||
16 | municipality the question of whether the municipality shall | ||||||
17 | impose such a tax or increase the rate of such a tax . On and | ||||||
18 | after September 1, 1991, this
additional tax may not be imposed | ||||||
19 | on the sales of food for human
consumption that is to be | ||||||
20 | consumed off the premises where it
is sold (other than | ||||||
21 | alcoholic beverages, soft drinks and food that has
been | ||||||
22 | prepared for immediate consumption) and prescription and
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23 | nonprescription medicines, drugs, medical appliances and | ||||||
24 | insulin, urine
testing materials, syringes and needles used by | ||||||
25 | diabetics. The tax imposed
by a home rule municipality under |
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1 | this Section and all
civil penalties that may be assessed as an | ||||||
2 | incident of the tax shall
be collected and enforced by the | ||||||
3 | State Department of
Revenue. The certificate of registration | ||||||
4 | that is issued by
the Department to a retailer under the | ||||||
5 | Retailers' Occupation Tax Act
shall permit the retailer to | ||||||
6 | engage in a business that is taxable
under any ordinance or | ||||||
7 | resolution enacted pursuant to
this Section without | ||||||
8 | registering separately with the Department under such
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9 | ordinance or resolution or under this Section. The Department | ||||||
10 | shall have
full power to administer and enforce this Section; | ||||||
11 | to collect all taxes and
penalties due hereunder; to dispose of | ||||||
12 | taxes and penalties so collected in
the manner hereinafter | ||||||
13 | provided; and to determine all rights to
credit memoranda | ||||||
14 | arising on account of the erroneous payment of tax or
penalty | ||||||
15 | hereunder. In the administration of, and compliance with, this
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16 | Section the Department and persons who are subject to this | ||||||
17 | Section shall
have the same rights, remedies, privileges, | ||||||
18 | immunities, powers and duties,
and be subject to the same | ||||||
19 | conditions, restrictions, limitations, penalties
and | ||||||
20 | definitions of terms, and employ the same modes of procedure, | ||||||
21 | as are
prescribed in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, | ||||||
22 | 1m, 1n, 2 through
2-65 (in
respect to all provisions therein | ||||||
23 | other than the State rate of tax), 2c, 3
(except as to the | ||||||
24 | disposition of taxes and penalties collected), 4, 5, 5a,
5b, | ||||||
25 | 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, | ||||||
26 | 9, 10, 11,
12 and 13 of the Retailers' Occupation Tax Act and |
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1 | Section 3-7 of the
Uniform Penalty and Interest Act, as fully | ||||||
2 | as if those provisions were
set forth herein.
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3 | No tax may be imposed by a home rule municipality under | ||||||
4 | this Section
unless the municipality also imposes a tax at the | ||||||
5 | same rate under Section
8-11-5 of this Act.
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6 | Persons subject to any tax imposed under the authority | ||||||
7 | granted in this
Section may reimburse themselves for their | ||||||
8 | seller's tax liability hereunder
by separately stating that tax | ||||||
9 | as an additional charge, which charge may be
stated in | ||||||
10 | combination, in a single amount, with State tax which sellers | ||||||
11 | are
required to collect under the Use Tax Act, pursuant to such | ||||||
12 | bracket
schedules as the Department may prescribe.
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13 | Whenever the Department determines that a refund should be | ||||||
14 | made under
this Section to a claimant instead of issuing a | ||||||
15 | credit memorandum, the
Department shall notify the State | ||||||
16 | Comptroller, who shall cause the
order to be drawn for the | ||||||
17 | amount specified and to the person named
in the notification | ||||||
18 | from the Department. The refund shall be paid by the
State | ||||||
19 | Treasurer out of the home rule municipal retailers' occupation | ||||||
20 | tax fund.
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21 | The Department shall immediately pay over to the State
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22 | Treasurer, ex officio, as trustee, all taxes and penalties | ||||||
23 | collected
hereunder. | ||||||
24 | As soon as possible after the first day of each month, | ||||||
25 | beginning January 1, 2011, upon certification of the Department | ||||||
26 | of Revenue, the Comptroller shall order transferred, and the |
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1 | Treasurer shall transfer, to the STAR Bonds Revenue Fund the | ||||||
2 | local sales tax increment, as defined in the Innovation | ||||||
3 | Development and Economy Act, collected under this Section | ||||||
4 | during the second preceding calendar month for sales within a | ||||||
5 | STAR bond district. | ||||||
6 | After the monthly transfer to the STAR Bonds Revenue Fund, | ||||||
7 | on or before the 25th day of each calendar month, the
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8 | Department shall prepare and certify to the Comptroller the | ||||||
9 | disbursement of
stated sums of money to named municipalities, | ||||||
10 | the municipalities to be
those from which retailers have paid | ||||||
11 | taxes or penalties hereunder to the
Department during the | ||||||
12 | second preceding calendar month. The amount to be
paid to each | ||||||
13 | municipality shall be the amount (not including credit
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14 | memoranda) collected hereunder during the second preceding | ||||||
15 | calendar month
by the Department plus an amount the Department | ||||||
16 | determines is necessary to
offset any amounts that were | ||||||
17 | erroneously paid to a different
taxing body, and not including | ||||||
18 | an amount equal to the amount of refunds
made during the second | ||||||
19 | preceding calendar month by the Department on
behalf of such | ||||||
20 | municipality, and not including any amount that the Department
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21 | determines is necessary to offset any amounts that were payable | ||||||
22 | to a
different taxing body but were erroneously paid to the | ||||||
23 | municipality, and not including any amounts that are | ||||||
24 | transferred to the STAR Bonds Revenue Fund, less 2% of the | ||||||
25 | remainder, which the Department shall transfer into the Tax | ||||||
26 | Compliance and Administration Fund. The Department, at the time |
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1 | of each monthly disbursement to the municipalities, shall | ||||||
2 | prepare and certify to the State Comptroller the amount to be | ||||||
3 | transferred into the Tax Compliance and Administration Fund | ||||||
4 | under this Section. Within
10 days after receipt by the | ||||||
5 | Comptroller of the disbursement certification
to the | ||||||
6 | municipalities and the Tax Compliance and Administration Fund | ||||||
7 | provided for in this Section to be given to the
Comptroller by | ||||||
8 | the Department, the Comptroller shall cause the orders to be
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9 | drawn for the respective amounts in accordance with the | ||||||
10 | directions
contained in the certification.
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11 | In addition to the disbursement required by the preceding | ||||||
12 | paragraph and
in order to mitigate delays caused by | ||||||
13 | distribution procedures, an
allocation shall, if requested, be | ||||||
14 | made within 10 days after January 14,
1991, and in November of | ||||||
15 | 1991 and each year thereafter, to each
municipality that | ||||||
16 | received more than $500,000 during the preceding fiscal
year, | ||||||
17 | (July 1 through June 30) whether collected by the municipality | ||||||
18 | or
disbursed by the Department as required by this Section. | ||||||
19 | Within 10 days
after January 14, 1991, participating | ||||||
20 | municipalities shall notify the
Department in writing of their | ||||||
21 | intent to participate. In addition, for the
initial | ||||||
22 | distribution, participating municipalities shall certify to | ||||||
23 | the
Department the amounts collected by the municipality for | ||||||
24 | each month under
its home rule occupation and service | ||||||
25 | occupation tax during the period July
1, 1989 through June 30, | ||||||
26 | 1990. The allocation within 10 days after January
14, 1991, |
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1 | shall be in an amount equal to the monthly average of these
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2 | amounts, excluding the 2 months of highest receipts. The | ||||||
3 | monthly average
for the period of July 1, 1990 through June 30, | ||||||
4 | 1991 will be determined as
follows: the amounts collected by | ||||||
5 | the municipality under its home rule
occupation and service | ||||||
6 | occupation tax during the period of July 1, 1990
through | ||||||
7 | September 30, 1990, plus amounts collected by the Department | ||||||
8 | and
paid to such municipality through June 30, 1991, excluding | ||||||
9 | the 2 months of
highest receipts. The monthly average for each | ||||||
10 | subsequent period of July 1
through June 30 shall be an amount | ||||||
11 | equal to the monthly distribution made
to each such | ||||||
12 | municipality under the preceding paragraph during this period,
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13 | excluding the 2 months of highest receipts. The distribution | ||||||
14 | made in
November 1991 and each year thereafter under this | ||||||
15 | paragraph and the
preceding paragraph shall be reduced by the | ||||||
16 | amount allocated and disbursed
under this paragraph in the | ||||||
17 | preceding period of July 1 through June 30.
The Department | ||||||
18 | shall prepare and certify to the Comptroller for
disbursement | ||||||
19 | the allocations made in accordance with this paragraph.
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20 | For the purpose of determining the local governmental unit | ||||||
21 | whose tax
is applicable, a retail sale by a producer of coal or | ||||||
22 | other mineral
mined in Illinois is a sale at retail at the | ||||||
23 | place where the coal or
other mineral mined in Illinois is | ||||||
24 | extracted from the earth. This
paragraph does not apply to coal | ||||||
25 | or other mineral when it is delivered
or shipped by the seller | ||||||
26 | to the purchaser at a point outside Illinois so
that the sale |
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1 | is exempt under the United States Constitution as a sale in
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2 | interstate or foreign commerce.
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3 | Nothing in this Section shall be construed to authorize a
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4 | municipality to impose a tax upon the privilege of engaging in | ||||||
5 | any
business which under the Constitution of the United States | ||||||
6 | may not be
made the subject of taxation by this State.
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7 | An ordinance or resolution imposing or discontinuing a tax | ||||||
8 | hereunder or
effecting a change in the rate thereof shall be | ||||||
9 | adopted and a certified
copy thereof filed with the Department | ||||||
10 | on or before the first day of June,
whereupon the Department | ||||||
11 | shall proceed to administer and enforce this
Section as of the | ||||||
12 | first day of September next following the
adoption and filing. | ||||||
13 | Beginning January 1, 1992, an ordinance or resolution
imposing | ||||||
14 | or discontinuing the tax hereunder or effecting a change in the
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15 | rate thereof shall be adopted and a certified copy thereof | ||||||
16 | filed with the
Department on or before the first day of July, | ||||||
17 | whereupon the Department
shall proceed to administer and | ||||||
18 | enforce this Section as of the first day of
October next | ||||||
19 | following such adoption and filing. Beginning January 1, 1993,
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20 | an ordinance or resolution imposing or discontinuing the tax | ||||||
21 | hereunder or
effecting a change in the rate thereof shall be | ||||||
22 | adopted and a certified
copy thereof filed with the Department | ||||||
23 | on or before the first day of
October, whereupon the Department | ||||||
24 | shall proceed to administer and enforce
this Section as of the | ||||||
25 | first day of January next following the
adoption and filing.
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26 | However, a municipality located in a county with a population |
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1 | in excess of
3,000,000 that elected to become a home rule unit | ||||||
2 | at the general primary
election in
1994 may adopt an ordinance | ||||||
3 | or resolution imposing the tax under this Section
and file a | ||||||
4 | certified copy of the ordinance or resolution with the | ||||||
5 | Department on
or before July 1, 1994. The Department shall then | ||||||
6 | proceed to administer and
enforce this Section as of October 1, | ||||||
7 | 1994.
Beginning April 1, 1998, an ordinance or
resolution | ||||||
8 | imposing or
discontinuing the tax hereunder or effecting a | ||||||
9 | change in the rate thereof shall
either (i) be adopted and a | ||||||
10 | certified copy thereof filed with the Department on
or
before | ||||||
11 | the first day of April, whereupon the Department shall proceed | ||||||
12 | to
administer and enforce this Section as of the first day of | ||||||
13 | July next following
the adoption and filing; or (ii) be adopted | ||||||
14 | and a certified copy thereof filed
with the Department on or | ||||||
15 | before the first day of October, whereupon the
Department shall | ||||||
16 | proceed to administer and enforce this Section as of the first
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17 | day of January next following the adoption and filing.
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18 | When certifying the amount of a monthly disbursement to a | ||||||
19 | municipality
under this Section, the Department shall increase | ||||||
20 | or decrease the amount by
an amount necessary to offset any | ||||||
21 | misallocation of previous disbursements.
The offset amount | ||||||
22 | shall be the amount erroneously disbursed
within the previous 6 | ||||||
23 | months from the time a misallocation is discovered.
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24 | Any unobligated balance remaining in the Municipal | ||||||
25 | Retailers' Occupation
Tax Fund on December 31, 1989, which fund | ||||||
26 | was abolished by Public Act
85-1135, and all receipts of |
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1 | municipal tax as a result of audits of
liability periods prior | ||||||
2 | to January 1, 1990, shall be paid into the Local
Government Tax | ||||||
3 | Fund for distribution as provided by this Section prior to
the | ||||||
4 | enactment of Public Act 85-1135. All receipts of municipal tax | ||||||
5 | as a
result of an assessment not arising from an audit, for | ||||||
6 | liability periods
prior to January 1, 1990, shall be paid into | ||||||
7 | the Local Government Tax Fund
for distribution before July 1, | ||||||
8 | 1990, as provided by this Section prior to
the enactment of | ||||||
9 | Public Act 85-1135; and on and after July 1,
1990, all such | ||||||
10 | receipts shall be distributed as provided in Section
6z-18 of | ||||||
11 | the State Finance Act.
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12 | As used in this Section, "municipal" and "municipality" | ||||||
13 | means a city,
village or incorporated town, including an | ||||||
14 | incorporated town that has
superseded a civil township.
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15 | This Section shall be known and may be cited as the Home | ||||||
16 | Rule Municipal
Retailers' Occupation Tax Act.
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17 | (Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17.)
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18 | Section 99. Effective date. This Act takes effect upon | ||||||
19 | becoming law.
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