SB 3134 — MUNI CD-USE/OCC TAX PROCEEDS

SB3134 EngrossedEnrolled LRB096 20281 RLJ 35887 b AN ACT concerning local government.

Notwithstanding any provision of law to the contrary, if the proceeds of the tax may be used for municipal operations SB3134 EngrossedEnrolled - 2 - LRB096 20281 RLJ 35887 b 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:

Beginning January 1, 1993, SB3134 EngrossedEnrolled - 3 - LRB096 20281 RLJ 35887 b 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.

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 SB3134 EngrossedEnrolled - 4 - LRB096 20281 RLJ 35887 b 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.

SB3134 EngrossedEnrolled - 5 - LRB096 20281 RLJ 35887 b (Source:

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 SB3134 EngrossedEnrolled - 6 - LRB096 20281 RLJ 35887 b insulin, urine testing materials, syringes, and needles used by diabetics.

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), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, SB3134 EngrossedEnrolled - 7 - LRB096 20281 RLJ 35887 b 5j, 5k, 5l, 6, 6a, 6b, 6c, 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.

On or before the 25th day of each calendar month, the Department shall prepare and certify to the SB3134 EngrossedEnrolled - 8 - LRB096 20281 RLJ 35887 b 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.

This paragraph does not apply to coal SB3134 EngrossedEnrolled - 9 - LRB096 20281 RLJ 35887 b 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.

Non-Home Rule Municipal Service Occupation SB3134 EngrossedEnrolled - 10 - LRB096 20281 RLJ 35887 b Tax Act.

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 SB3134 EngrossedEnrolled - 11 - LRB096 20281 RLJ 35887 b Revenue.

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 SB3134 EngrossedEnrolled - 12 - LRB096 20281 RLJ 35887 b 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.

The Department shall forthwith pay over to the State SB3134 EngrossedEnrolled - 13 - LRB096 20281 RLJ 35887 b Treasurer, ex officio, as trustee, all taxes and penalties collected hereunder.

SB3134 EngrossedEnrolled - 14 - LRB096 20281 RLJ 35887 b 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.

The tax imposed may not be more than 1% SB3134 EngrossedEnrolled - 15 - LRB096 20281 RLJ 35887 b and may be imposed only in 1/4% increments.