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91_HB0523ccr001
LRB9102505MWgcccr3
1 91ST GENERAL ASSEMBLY
2 CONFERENCE COMMITTEE REPORT
3 ON HOUSE BILL 523
4 -------------------------------------------------------------
5 -------------------------------------------------------------
6 To the President of the Senate and the Speaker of the
7 House of Representatives:
8 We, the conference committee appointed to consider the
9 differences between the houses in relation to Senate
10 Amendments Nos. 1 and 2 to House Bill 523, recommend the
11 following:
12 (1) that the Senate recede from Senate Amendments Nos. 1
13 and 2; and
14 (2) that House Bill 523 be amended as follows:
15 by replacing everything after the enacting clause with the
16 following:
17 "Section 1. Legislative intent. State and federal
18 governments and organizations have studied the changing
19 habits of consumer purchasing and are discussing a movement
20 from retailers' occupation taxes to taxes which are more
21 efficiently collected from catalog and electronic commerce
22 vendors of tangible personal property. It is the intent of
23 the General Assembly that this amendatory Act of the 91st
24 General Assembly contain a delayed collection date until
25 January 1, 2002 to allow additional time for the study of the
26 effects of a shift in the methods of imposing and collecting
27 taxes on consumption.
28 Section 5. The Illinois Municipal Code is amended by
29 changing Sections 8-11-1.1, 8-11-1.3, 8-11-1.4, and 8-11-1.5
30 as follows:
31 (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
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1 Sec. 8-11-1.1. Non-home rule municipalities; imposition
2 of taxes.
3 (a) The corporate authorities of a non-home rule
4 municipality with a population greater than 130,000 but less
5 than 2,000,000 may, upon approval of the electors of the
6 municipality pursuant to subsection (b) of this Section,
7 impose by ordinance or resolution the 1/2 of 1% tax
8 authorized in Sections 8-11-1.3, 8-11-1.4 and 8-11-1.5 of
9 this Act.
10 (b) The corporate authorities of the municipality may by
11 ordinance or resolution call for the submission to the
12 electors of the municipality the question of whether the
13 municipality shall impose such tax. Such question shall be
14 certified by the municipal clerk to the election authority in
15 accordance with Section 28-5 of the Election Code and shall
16 be in a form in accordance with Section 16-7 of the Election
17 Code.
18 If a majority of the electors in the municipality voting
19 upon the question vote in the affirmative, such tax shall be
20 imposed.
21 An ordinance or resolution imposing the 1/2 of 1% tax
22 hereunder or discontinuing the same shall be adopted and a
23 certified copy thereof, together with a certification that
24 the ordinance or resolution received referendum approval in
25 the case of the imposition of such tax, filed with the
26 Department of Revenue, on or before the first day of June,
27 whereupon the Department shall proceed to administer and
28 enforce the additional tax or to discontinue the tax, as the
29 case may be, as of the first day of September next following
30 such adoption and filing. Beginning January 1, 1992, an
31 ordinance or resolution imposing or discontinuing the tax
32 hereunder shall be adopted and a certified copy thereof filed
33 with the Department on or before the first day of July,
34 whereupon the Department shall proceed to administer and
35 enforce this Section as of the first day of October next
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1 following such adoption and filing. Beginning January 1,
2 1993, an ordinance or resolution imposing or discontinuing
3 the tax hereunder shall be adopted and a certified copy
4 thereof filed with the Department on or before the first day
5 of October, whereupon the Department shall proceed to
6 administer and enforce this Section as of the first day of
7 January next following such adoption and filing. A non-home
8 rule municipality may file a certified copy of an ordinance
9 or resolution, with a certification that the ordinance or
10 resolution received referendum approval in the case of the
11 imposition of the tax, with the Department of Revenue, as
12 required under this Section, only after October 2, 2000.
13 (Source: P.A. 86-928; 87-205.)
14 (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
15 Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
16 Occupation Tax Act. The corporate authorities of a non-home
17 rule municipality with more than 130,000 but less than
18 2,000,000 inhabitants may impose a tax upon all persons
19 engaged in the business of selling tangible personal
20 property, other than on an item of tangible personal property
21 which is titled and registered by an agency of this State's
22 Government, at retail in the municipality at the rate of 1/2
23 of 1% for expenditure on public infrastructure as defined in
24 Section 8-11-1.2 if approved by referendum as provided in
25 Section 8-11-1.1, of the gross receipts from such sales made
26 in the course of such business. The tax may not be imposed on
27 the sale of food for human consumption that is to be consumed
28 off the premises where it is sold (other than alcoholic
29 beverages, soft drinks, and food that has been prepared for
30 immediate consumption) and prescription and nonprescription
31 medicines, drugs, medical appliances, and insulin, urine
32 testing materials, syringes, and needles used by diabetics.
33 The tax imposed by a municipality pursuant to this Section
34 and all civil penalties that may be assessed as an incident
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1 thereof shall be collected and enforced by the State
2 Department of Revenue. The certificate of registration which
3 is issued by the Department to a retailer under the
4 Retailers' Occupation Tax Act shall permit such retailer to
5 engage in a business which is taxable under any ordinance or
6 resolution enacted pursuant to this Section without
7 registering separately with the Department under such
8 ordinance or resolution or under this Section. The
9 Department shall have full power to administer and enforce
10 this Section; to collect all taxes and penalties due
11 hereunder; to dispose of taxes and penalties so collected in
12 the manner hereinafter provided, and to determine all rights
13 to credit memoranda, arising on account of the erroneous
14 payment of tax or penalty hereunder. In the administration
15 of, and compliance with, this Section, the Department and
16 persons who are subject to this Section shall have the same
17 rights, remedies, privileges, immunities, powers and duties,
18 and be subject to the same conditions, restrictions,
19 limitations, penalties and definitions of terms, and employ
20 the same modes of procedure, as are prescribed in Sections 1,
21 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to
22 all provisions therein other than the State rate of tax), 2c,
23 3 (except as to the disposition of taxes and penalties
24 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
25 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and 13 of the
26 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
27 Penalty and Interest Act as fully as if those provisions were
28 set forth herein.
29 No municipality may impose a tax under this Section
30 unless the municipality also imposes a tax at the same rate
31 under Section 8-11-1.4 of this Code.
32 Persons subject to any tax imposed pursuant to the
33 authority granted in this Section may reimburse themselves
34 for their seller's tax liability hereunder by separately
35 stating such tax as an additional charge, which charge may be
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1 stated in combination, in a single amount, with State tax
2 which sellers are required to collect under the Use Tax Act,
3 pursuant to such bracket schedules as the Department may
4 prescribe.
5 Whenever the Department determines that a refund should
6 be made under this Section to a claimant instead of issuing a
7 credit memorandum, the Department shall notify the State
8 Comptroller, who shall cause the order to be drawn for the
9 amount specified, and to the person named, in such
10 notification from the Department. Such refund shall be paid
11 by the State Treasurer out of the non-home rule municipal
12 retailers' occupation tax fund.
13 The Department shall forthwith pay over to the State
14 Treasurer, ex officio, as trustee, all taxes and penalties
15 collected hereunder. On or before the 25th day of each
16 calendar month, the Department shall prepare and certify to
17 the Comptroller the disbursement of stated sums of money to
18 named municipalities, the municipalities to be those from
19 which retailers have paid taxes or penalties hereunder to the
20 Department during the second preceding calendar month. The
21 amount to be paid to each municipality shall be the amount
22 (not including credit memoranda) collected hereunder during
23 the second preceding calendar month by the Department plus an
24 amount the Department determines is necessary to offset any
25 amounts which were erroneously paid to a different taxing
26 body, and not including an amount equal to the amount of
27 refunds made during the second preceding calendar month by
28 the Department on behalf of such municipality, and not
29 including any amount which the Department determines is
30 necessary to offset any amounts which were payable to a
31 different taxing body but were erroneously paid to the
32 municipality. Within 10 days after receipt, by the
33 Comptroller, of the disbursement certification to the
34 municipalities, provided for in this Section to be given to
35 the Comptroller by the Department, the Comptroller shall
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1 cause the orders to be drawn for the respective amounts in
2 accordance with the directions contained in such
3 certification.
4 For the purpose of determining the local governmental
5 unit whose tax is applicable, a retail sale, by a producer of
6 coal or other mineral mined in Illinois, is a sale at retail
7 at the place where the coal or other mineral mined in
8 Illinois is extracted from the earth. This paragraph does
9 not apply to coal or other mineral when it is delivered or
10 shipped by the seller to the purchaser at a point outside
11 Illinois so that the sale is exempt under the Federal
12 Constitution as a sale in interstate or foreign commerce.
13 Nothing in this Section shall be construed to authorize a
14 municipality to impose a tax upon the privilege of engaging
15 in any business which under the constitution of the United
16 States may not be made the subject of taxation by this State.
17 When certifying the amount of a monthly disbursement to a
18 municipality under this Section, the Department shall
19 increase or decrease such amount by an amount necessary to
20 offset any misallocation of previous disbursements. The
21 offset amount shall be the amount erroneously disbursed
22 within the previous 6 months from the time a misallocation is
23 discovered.
24 The Department of Revenue shall implement this amendatory
25 Act of the 91st General Assembly so as to collect the tax on
26 and after January 1, 2002.
27 As used in this Section, "municipal" and "municipality"
28 means a city, village or incorporated town, including an
29 incorporated town which has superseded a civil township.
30 This Section shall be known and may be cited as the
31 "Non-Home Rule Municipal Retailers' Occupation Tax Act".
32 (Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
33 (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
34 Sec. 8-11-1.4. Non-Home Rule Municipal Service
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1 Occupation Tax Act. The corporate authorities of a non-home
2 rule municipality with a population of more than 130,000 but
3 less than 2,000,000 may impose a tax upon all persons
4 engaged, in such municipality, in the business of making
5 sales of service at the rate of 1/2 of 1% for expenditure on
6 public infrastructure as defined in Section 8-11-1.2 if
7 approved by referendum as provided in Section 8-11-1.1, of
8 the selling price of all tangible personal property
9 transferred by such servicemen either in the form of tangible
10 personal property or in the form of real estate as an
11 incident to a sale of service. The tax may not be imposed on
12 the sale of food for human consumption that is to be consumed
13 off the premises where it is sold (other than alcoholic
14 beverages, soft drinks, and food that has been prepared for
15 immediate consumption) and prescription and nonprescription
16 medicines, drugs, medical appliances, and insulin, urine
17 testing materials, syringes, and needles used by diabetics.
18 The tax imposed by a municipality pursuant to this Section
19 and all civil penalties that may be assessed as an incident
20 thereof shall be collected and enforced by the State
21 Department of Revenue. The certificate of registration which
22 is issued by the Department to a retailer under the
23 Retailers' Occupation Tax Act or under the Service Occupation
24 Tax Act shall permit such registrant to engage in a business
25 which is taxable under any ordinance or resolution enacted
26 pursuant to this Section without registering separately with
27 the Department under such ordinance or resolution or under
28 this Section. The Department shall have full power to
29 administer and enforce this Section; to collect all taxes and
30 penalties due hereunder; to dispose of taxes and penalties so
31 collected in the manner hereinafter provided, and to
32 determine all rights to credit memoranda arising on account
33 of the erroneous payment of tax or penalty hereunder. In the
34 administration of, and compliance with, this Section the
35 Department and persons who are subject to this Section shall
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1 have the same rights, remedies, privileges, immunities,
2 powers and duties, and be subject to the same conditions,
3 restrictions, limitations, penalties and definitions of
4 terms, and employ the same modes of procedure, as are
5 prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
6 respect to all provisions therein other than the State rate
7 of tax), 4 (except that the reference to the State shall be
8 to the taxing municipality), 5, 7, 8 (except that the
9 jurisdiction to which the tax shall be a debt to the extent
10 indicated in that Section 8 shall be the taxing
11 municipality), 9 (except as to the disposition of taxes and
12 penalties collected, and except that the returned merchandise
13 credit for this municipal tax may not be taken against any
14 State tax), 10, 11, 12 (except the reference therein to
15 Section 2b of the Retailers' Occupation Tax Act), 13 (except
16 that any reference to the State shall mean the taxing
17 municipality), the first paragraph of Section 15, 16, 17, 18,
18 19 and 20 of the Service Occupation Tax Act and Section 3-7
19 of the Uniform Penalty and Interest Act, as fully as if those
20 provisions were set forth herein.
21 No municipality may impose a tax under this Section
22 unless the municipality also imposes a tax at the same rate
23 under Section 8-11-1.3 of this Code.
24 Persons subject to any tax imposed pursuant to the
25 authority granted in this Section may reimburse themselves
26 for their serviceman's tax liability hereunder by separately
27 stating such tax as an additional charge, which charge may be
28 stated in combination, in a single amount, with State tax
29 which servicemen are authorized to collect under the Service
30 Use Tax Act, pursuant to such bracket schedules as the
31 Department may prescribe.
32 Whenever the Department determines that a refund should
33 be made under this Section to a claimant instead of issuing
34 credit memorandum, the Department shall notify the State
35 Comptroller, who shall cause the order to be drawn for the
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1 amount specified, and to the person named, in such
2 notification from the Department. Such refund shall be paid
3 by the State Treasurer out of the municipal retailers'
4 occupation tax fund.
5 The Department shall forthwith pay over to the State
6 Treasurer, ex officio, as trustee, all taxes and penalties
7 collected hereunder. On or before the 25th day of each
8 calendar month, the Department shall prepare and certify to
9 the Comptroller the disbursement of stated sums of money to
10 named municipalities, the municipalities to be those from
11 which suppliers and servicemen have paid taxes or penalties
12 hereunder to the Department during the second preceding
13 calendar month. The amount to be paid to each municipality
14 shall be the amount (not including credit memoranda)
15 collected hereunder during the second preceding calendar
16 month by the Department, and not including an amount equal to
17 the amount of refunds made during the second preceding
18 calendar month by the Department on behalf of such
19 municipality. Within 10 days after receipt, by the
20 Comptroller, of the disbursement certification to the
21 municipalities and the General Revenue Fund, provided for in
22 this Section to be given to the Comptroller by the
23 Department, the Comptroller shall cause the orders to be
24 drawn for the respective amounts in accordance with the
25 directions contained in such certification.
26 The Department of Revenue shall implement this amendatory
27 Act of the 91st General Assembly so as to collect the tax on
28 and after January 1, 2002.
29 Nothing in this Section shall be construed to authorize a
30 municipality to impose a tax upon the privilege of engaging
31 in any business which under the constitution of the United
32 States may not be made the subject of taxation by this State.
33 As used in this Section, "municipal" or "municipality"
34 means or refers to a city, village or incorporated town,
35 including an incorporated town which has superseded a civil
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1 township.
2 This Section shall be known and may be cited as the
3 "Non-Home Rule Municipal Service Occupation Tax Act".
4 (Source: P.A. 86-928; 86-1475; 87-205; 87-895.)
5 (65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5)
6 Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The
7 corporate authorities of a non-home rule municipality with a
8 population greater than 130,000 but less than 2,000,000 may
9 impose a tax upon the privilege of using, in such
10 municipality, any item of tangible personal property which is
11 purchased at retail from a retailer, and which is titled or
12 registered with an agency of this State's government, at a
13 rate of 1/2 of 1% and based on the selling price of such
14 tangible personal property, as "selling price" is defined in
15 the Use Tax Act, for expenditure on public infrastructure as
16 defined in Section 8-11-1.2, if approved by referendum as
17 provided in Section 8-11-1.1. Such tax shall be collected
18 from persons whose Illinois address for title or registration
19 purposes is given as being in such municipality. Such tax
20 shall be collected by the municipality imposing such tax. A
21 non-home rule municipality may not impose and collect the tax
22 prior to January 1, 2002.
23 This Section shall be known and may be cited as the
24 "Non-Home Rule Municipal Use Tax Act".
25 (Source: P.A. 86-928.)".
26 Submitted on May 27, 1999
27 s/Sen. William Peterson s/Rep. Frank Mautino
28 s/Sen. Wendell Jones s/Rep. Calvin Giles
29 s/Sen. Stanley Weaver s/Rep. Barbara Flynn Currie
30 s/Sen. James Clayborne Rep. Art Tenhouse
31 s/Sen. Arthur Berman s/Rep. Sidney Mathias
32 Committee for the Senate Committee for the House