HB3091 EngrossedEnrolled LRB095 06286 HLH 26381 b AN ACT concerning local government.
The Illinois Municipal Code is amended by changing SectionsSection 8-11-18-11-6a and 8-11-5by adding Section 8-11-6c as follows:
(65 ILCS 5/8-11-1)5/8-11-6a) (from Ch.
8-11-1)8-11-6a) Sec.
8-11-1.8-11-6a.
Home Rulerule Municipalmunicipalities; Retailers’ Occupation Tax Act.
Thepreemption corporate authorities of acertain hometaxes. rule municipality may impose a tax upon all persons engaged in the business of selling tangible personal property, other than an item of tangible personal property titled or registered with an agency of this State’s government, at retail in the municipality on the gross receipts from these sales made in the course of such business.
IfExcept imposed,as provided in Sections 8-11-1, 8-11-5, 8-11-6, 8-11-6b, 8-11-6c, and 11-74.3-6 on and after September 1, 1990, no home rule municipality has the authority to impose, pursuant to its home rule authority, a retailer’s occupation tax, service occupation tax, use tax, sales tax shallor onlyother betax imposedon inthe 1/4%use, increments.sale or purchase of tangible personal property based on the gross receipts from such sales or the selling or purchase price of said tangible personal property.
OnNotwithstanding andthe afterforegoing, September 1, 1991, this additionalSection taxdoes may not bepreempt imposedany onhome therule salesimposed oftax foodsuch foras human consumption that is to be consumed off the premisesfollowing: 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 materials, syringes and needles used by diabetics.
The(1) tax imposed by a hometax ruleon municipalityalcoholic underbeverages, thiswhether Sectionbased andon allgross civilreceipts, penaltiesvolume thatsold mayor beany assessedother asmeasurement; an HB3091 Engrossed - 2 - LRB095 06286 HLH 26381 b incident of the tax shall be collected and enforced by the State Department of Revenue.
The(2) certificatea oftax registrationbased thaton isthe issuednumber byof theunits Departmentof tocigarettes aor retailertobacco underproducts the(provided, Retailers’however, Occupationthat Taxa Acthome shallrule permitmunicipality thethat retailerhas tonot engageimposed in a businesstax thatbased ison taxablethe undernumber anyof ordinanceunits of cigarettes or resolutiontobacco enactedproducts pursuantbefore toHB3091 thisEnrolled Section- without2 registering- separatelyLRB095 with06286 theHLH Department26381 underb suchJuly ordinance1, or1993, resolutionshall ornot underimpose thissuch Section.a tax after that date);
The(3) Departmenta shalltax, havehowever fullmeasured, powerbased toon administerthe anduse enforceof thisa Section;hotel or motel room or similar facility;
to(4) collecta alltax, taxeshowever andmeasured, penaltieson duethe hereunder;sale or transfer of real property;
to(5) disposea oftax, taxeshowever andmeasured, penaltieson solease collectedreceipts; in the manner hereinafter provided;
and(6) toa determinetax allon rightsfood toprepared creditfor memorandaimmediate arisingconsumption and on accountalcoholic ofbeverages thesold erroneousby paymenta business which provides for on premise consumption of taxsaid food or penaltyalcoholic hereunder.beverages;
Inor the(7) 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, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all provisions therein other thantaxes thenot Statebased rateon of tax), 2c, 3 (except as to the dispositionselling ofor taxespurchase andprice penaltiesor collected),gross 4,receipts 5,from 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the Retailers’use, Occupationsale Taxor Actpurchase and Section 3-7 of thetangible Uniformpersonal Penaltyproperty. and Interest Act, as fully HB3091 Engrossed - 3 - LRB095 06286 HLH 26381 b as if those provisions were set forth herein.
NoThis Section is not intended to affect any existing tax mayon befood and beverages prepared for immediate consumption on the premises where the sale occurs, or any existing tax on alcoholic beverages, or any existing tax imposed byon the charge for renting a homehotel ruleor municipalitymotel underroom, thiswhich Sectionwas unlessin effect January 15, 1988, or any extension of the municipalityeffective alsodate imposesof asuch an existing tax atby ordinance of the samemunicipality rateimposing underthe Sectiontax, 8-11-5which extension is hereby authorized, in any non-home rule municipality in which the imposition of such a tax has been upheld by judicial determination, nor is this Act.Section intended to preempt the authority granted by Public Act 85-1006.
PersonsThis subject to any tax imposed under the authority granted in this Section mayis reimburse themselves for their seller’s tax liability hereunder by separately stating that tax as an additional charge, which charge may be stated in combination, in a singlelimitation, amount,pursuant withto Statesubsection tax(g) whichof sellersSection are6 requiredof toArticle collectVII underof the UseIllinois TaxConstitution, Act,on pursuantthe topower suchof brackethome schedulesrule asunits theto Departmenttax. 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 the notification from the Department.
The refund shall be paid by the State Treasurer out of the home rule municipal retailers’ occupation tax fund.
A municipality that has not otherwise imposed a tax under this Section may impose a tax, for a defined and limited period of time, under this Section that is limited to a defined geographic area within the municipality and that is limited to a tax at a rate not to exceed 2% on alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption.
The geographic area must be a defined, contiguous HB3091 Engrossed - 4 - LRB095 06286 HLH 26381 b area of no more than one square mile.
At the time the ordinance imposing the tax is adopted, the municipality must have obtained the certified written consent of at least three-fourths of the operators of the businesses upon which the tax will be imposed.
Proceeds of the tax shall be maintained by the municipality in a separate account and may be used only for the costs associated with land acquisition, design, construction, and maintenance of parking facilities within the defined geographic area.
This tax may not be imposed for longer than 25 years after the municipality first levies the tax.
The Department shall immediately 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 retailers 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 plus an amount the Department determines is necessary to offset any amounts that 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 that HB3091 Engrossed - 5 - LRB095 06286 HLH 26381 b the Department determines is necessary to offset any amounts that were payable to a different taxing body but were erroneously paid to the municipality.
Within 10 days after receipt by the Comptroller of the disbursement certification to the municipalities 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 the certification.
In addition to the disbursement required by the preceding paragraph and in order to mitigate delays caused by distribution procedures, an allocation shall, if requested, be made within 10 days after January 14, 1991, and in November of 1991 and each year thereafter, to each municipality that received more than $500,000 during the preceding fiscal year, (July 1 through June 30) whether collected by the municipality or disbursed by the Department as required by this Section.
Within 10 days after January 14, 1991, participating municipalities shall notify the Department in writing of their intent to participate.
In addition, for the initial distribution, participating municipalities shall certify to the Department the amounts collected by the municipality for each month under its home rule occupation and service occupation tax during the period July 1, 1989 through June 30, 1990.
The allocation within 10 days after January 14, 1991, shall be in an amount equal to the monthly average of these amounts, excluding the 2 months of highest receipts.
The HB3091 Engrossed - 6 - LRB095 06286 HLH 26381 b monthly average for the period of July 1, 1990 through June 30, 1991 will be determined as follows:
the amounts collected by the municipality under its home rule occupation and service occupation tax during the period of July 1, 1990 through September 30, 1990, plus amounts collected by the Department and paid to such municipality through June 30, 1991, excluding the 2 months of highest receipts.
The monthly average for each subsequent period of July 1 through June 30 shall be an amount equal to the monthly distribution made to each such municipality under the preceding paragraph during this period, excluding the 2 months of highest receipts.
The distribution made in November 1991 and each year thereafter under this paragraph and the preceding paragraph shall be reduced by the amount allocated and disbursed under this paragraph in the preceding period of July 1 through June 30.
The Department shall prepare and certify to the Comptroller for disbursement the allocations made in accordance with this paragraph.
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 United States Constitution as a sale in interstate or foreign commerce.
HB3091 Engrossed - 7 - LRB095 06286 HLH 26381 b 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.
An ordinance or resolution imposing or discontinuing a tax hereunder or effecting a change in the rate thereof shall be adopted and a certified copy thereof filed with the Department on or before the first day of June, whereupon the Department shall proceed to administer and enforce this Section as of the first day of September next following the adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate thereof 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 enforce this Section as of the first day of October next following such adoption and filing.
Beginning January 1, 1993, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate thereof 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 the adoption and filing.
However, a municipality located in a county with a population in excess of 3,000,000 that elected to become a home rule unit at the general primary election in 1994 may adopt an ordinance HB3091 Engrossed - 8 - LRB095 06286 HLH 26381 b or resolution imposing the tax under this Section and file a certified copy of the ordinance or resolution with the Department on or before July 1, 1994.
The Department shall then proceed to administer and enforce this Section as of October 1, 1994.
Beginning April 1, 1998, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate thereof shall either (i) be adopted and a certified copy thereof 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 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 the adoption and filing.
When certifying the amount of a monthly disbursement to a municipality under this Section, the Department shall increase or decrease the 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.
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 HB3091 Engrossed - 9 - LRB095 06286 HLH 26381 b 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.
As used in this Section, "municipal" and "municipality" means a city, village or incorporated town, including an incorporated town that has superseded a civil township.
This Section shall be known and may be cited as the Home Rule Municipal Retailers’ Occupation Tax Act.
90-689,93-1053, eff.
7-31-98;1-1-05.) HB3091 Enrolled - 3 - LRB095 06286 HLH 26381 b (65 ILCS 5/8-11-6c new) Sec.
91-51,8-11-6c. eff.
6-30-99.)Home (65Rule ILCSfood 5/8-11-5)and (frombeverage Ch.tax to support parking facilities.
24,(a) par.In addition to any other tax that it is authorized to impose, a home rule municipality that has not imposed a tax under Section 8-11-1 or 8-11-5 may impose a tax, as limited by this Section, on the gross receipts from the sale of alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption.
8-11-5)(b) Sec.If imposed, the tax may be imposed only for a defined and limited period of time and must be limited to a defined geographic area within the municipality.
8-11-5.The defined geographic area must be a contiguous area of no more than one square mile.
HomeThe Ruletax Municipalmay Servicebe Occupationimposed Taxonly Act.in 0.25% increments, and the rate of tax may not exceed 2%.
TheAt corporatethe authoritiestime ofthat athe homeordinance ruleimposing municipalitythe may impose a tax uponis alladopted, personsthe engaged,municipality inmust suchhave municipality,obtained in the businesscertified ofwritten makingconsent sales of service at theleast samethree-fourths rate of tax imposed pursuant to Section 8-11-1, of the sellingoperators price of all tangible personal property transferred by such servicemen either in the formbusinesses ofupon tangiblewhich personal property or in the formtax ofwill realbe estateimposed. as an incident to a sale of service.
If imposed, such tax shall only be imposed in 1/4% increments.
On and after HB3091 Engrossed - 10 - LRB095 06286 HLH 26381 b September 1, 1991, this additional tax may not be imposed on the sales of food for human consumption which is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks and food which has been prepared for immediate consumption) and prescription and nonprescription medicines, drugs, medical appliances and insulin, urine testing materials, syringes and needles used by diabetics.
The tax imposed by a home rule 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 HB3091 Engrossed - 11 - LRB095 06286 HLH 26381 b 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), 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 (except that credit memoranda issued hereunder may not be used to discharge any State tax liability), 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 tax may be imposed by a home rule municipality pursuant to this Section unless such municipality also imposes a tax at the same rate pursuant to Section 8-11-1 of this Act.
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 HB3091 Engrossed - 12 - LRB095 06286 HLH 26381 b 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 the State Treasurer out of the home rule municipal retailers’ occupation tax fund.
A municipality that has not otherwise imposed a tax under this Section may impose a tax, for a defined and limited period of time, under this Section that is limited to a defined geographic area within the municipality and that is limited to a tax at a rate not to exceed 2% on alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption.
The geographic area must be a defined, contiguous area of no more than one square mile.
At the time the ordinance imposing the tax is adopted, the municipality must have obtained the certified written consent of at least three-fourths of the operators of the businesses upon which the tax will be imposed.
Proceeds of the tax shall be maintained by the municipality in a separate account and may be used only for the costs associated with land acquisition, design, construction, and maintenance of parking facilities within the HB3091 Engrossed - 13 - LRB095 06286 HLH 26381 b defined geographic area.
(c) The Departmentmunicipality shallmust forthwithmaintain paythe overproceeds toof the Statetax Treasurer,in ex-officio,a asseparate trustee,account alland taxesmay use those moneys only for the costs associated with land acquisition, design, construction, and penaltiesmaintenance collectedof hereunder.parking facilities within the defined geographic area.
On(d) orThe beforetax the 25th day of each calendar month, the Department shall preparebe andadministered certifyby to the Comptrollermunicipality theHB3091 disbursementEnrolled of- stated4 sums- ofLRB095 money06286 toHLH named26381 municipalities,b theimposing municipalitiesit. to be those from which suppliers and servicemen have paid taxes or penalties hereunder to the Department during the second preceding calendar month.
TheSection amount99. 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, 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.
In addition to the disbursement required by the preceding paragraph and in order to mitigate delays caused by distribution procedures, an allocation shall, if requested, be made within 10 days after January 14, 1991, and in November of 1991 and each year thereafter, to each municipality that HB3091 Engrossed - 14 - LRB095 06286 HLH 26381 b received more than $500,000 during the preceding fiscal year, (July 1 through June 30) whether collected by the municipality or disbursed by the Department as required by this Section.
Within 10 days after January 14, 1991, participating municipalities shall notify the Department in writing of their intent to participate.
In addition, for the initial distribution, participating municipalities shall certify to the Department the amounts collected by the municipality for each month under its home rule occupation and service occupation tax during the period July 1, 1989 through June 30, 1990.
The allocation within 10 days after January 14, 1991, shall be in an amount equal to the monthly average of these amounts, excluding the 2 months of highest receipts.
Monthly average for the period of July 1, 1990 through June 30, 1991 will be determined as follows:
the amounts collected by the municipality under its home rule occupation and service occupation tax during the period of July 1, 1990 through September 30, 1990, plus amounts collected by the Department and paid to such municipality through June 30, 1991, excluding the 2 months of highest receipts.
The monthly average for each subsequent period of July 1 through June 30 shall be an amount equal to the monthly distribution made to each such municipality under the preceding paragraph during this period, excluding the 2 months of highest receipts.
The distribution made in November 1991 and each year thereafter under this paragraph and the preceding paragraph shall be reduced by the HB3091 Engrossed - 15 - LRB095 06286 HLH 26381 b amount allocated and disbursed under this paragraph in the preceding period of July 1 through June 30.
The Department shall prepare and certify to the Comptroller for disbursement the allocations made in accordance with this paragraph.
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.
An ordinance or resolution imposing or discontinuing a tax hereunder or effecting a change in the rate thereof shall be adopted and a certified copy thereof filed with the Department on or before the first day of June, whereupon the Department shall proceed to administer and enforce this Section as of the first day of September next following such adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate thereof 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 enforce this Section as of the first day of October next following such adoption and filing.
Beginning January 1, 1993, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate thereof 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 HB3091 Engrossed - 16 - LRB095 06286 HLH 26381 b first day of January next following such adoption and filing.
However, a municipality located in a county with a population in excess of 3,000,000 that elected to become a home rule unit at the general primary election in 1994 may adopt an ordinance or resolution imposing the tax under this Section and file a certified copy of the ordinance or resolution with the Department on or before July 1, 1994.
The Department shall then proceed to administer and enforce this Section as of October 1, 1994.
Beginning April 1, 1998, an ordinance or resolution imposing or discontinuing the tax hereunder or effecting a change in the rate thereof shall either (i) be adopted and a certified copy thereof 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 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 the adoption and filing.
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 HB3091 Engrossed - 17 - LRB095 06286 HLH 26381 b 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.
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.
This Section shall be known and may be cited as the Home Rule Municipal Service Occupation Tax Act.
(Source:
P.A.
90-689, eff.
7-31-98;
91-51, eff.
6-30-99.) Section 99.