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91_HB1981
LRB9103766PTmb
1 AN ACT to amend the Illinois Municipal Code by changing
2 Section 8-11-6.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Municipal Code is amended by
6 changing Section 8-11-6 as follows:
7 (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
8 Sec. 8-11-6. Home Rule Municipal Use Tax Act.
9 (a) The corporate authorities of a home rule
10 municipality may impose a tax upon the privilege of using, in
11 such municipality, any item of tangible personal property
12 which is purchased at retail from a retailer, and which is
13 titled or registered at a location within the corporate
14 limits of such home rule municipality with an agency of this
15 State's government, at a rate which is an increment of 1/4%
16 and based on the selling price of such tangible personal
17 property, as "selling price" is defined in the Use Tax Act.
18 In home rule municipalities with less than 2,000,000
19 inhabitants, the tax shall be collected by the municipality
20 imposing the tax from persons whose Illinois address for
21 titling or registration purposes is given as being in such
22 municipality.
23 (b) In home rule municipalities with 2,000,000 or more
24 inhabitants, the corporate authorities of the municipality
25 may additionally impose a tax beginning July 1, 1991 upon the
26 privilege of using in the municipality, any item of tangible
27 personal property, other than tangible personal property
28 titled or registered with an agency of the State's
29 government, that is purchased at retail from a retailer
30 located outside the corporate limits of the municipality, at
31 a rate that is an increment of 1/4% not to exceed 1% and
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1 based on the selling price of the tangible personal property,
2 as "selling price" is defined in the Use Tax Act. Such tax
3 shall be collected from the purchaser by the municipality
4 imposing such tax.
5 To prevent multiple home rule taxation, the use in a home
6 rule municipality of tangible personal property that is
7 acquired outside the municipality and caused to be brought
8 into the municipality by a person who has already paid a home
9 rule municipal tax in another municipality in respect to the
10 sale, purchase, or use of that property, shall be exempt to
11 the extent of the amount of the tax properly due and paid in
12 the other home rule municipality.
13 (c) If a municipality having 2,000,000 or more
14 inhabitants (i) imposes the tax authorized by subsection (a)
15 or (ii) imposes a tax upon the privilege of using in the
16 municipality a motor vehicle as defined by Section 1-146 of
17 the Illinois Vehicle Code that is titled or registered at a
18 location within the corporate limits of the municipality and
19 that is not purchased at retail from a retailer, then the tax
20 shall be collected by the Illinois Department of Revenue when
21 the property is purchased at retail from a retailer in the
22 county in which the home rule municipality imposing the tax
23 is located, and in all contiguous counties or, in the case of
24 item (ii), when the application for title or registration is
25 made. The tax shall be remitted to the State, or an
26 exemption determination must be obtained from the Department
27 before the title or certificate of registration for the
28 property may be issued. The tax or proof of exemption may be
29 transmitted to the Department by way of the State agency with
30 which, or State officer with whom, the tangible personal
31 property must be titled or registered if the Department and
32 that agency or State officer determine that this procedure
33 will expedite the processing of applications for title or
34 registration.
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1 The Department shall have full power to administer and
2 enforce this Section to collect all taxes, penalties and
3 interest due hereunder, to dispose of taxes, penalties and
4 interest so collected in the manner hereinafter provided, and
5 determine all rights to credit memoranda or refunds arising
6 on account of the erroneous payment of tax, penalty or
7 interest hereunder. In the administration of and compliance
8 with this Section the Department and persons who are subject
9 to this Section shall have the same rights, remedies,
10 privileges, immunities, powers and duties, and be subject to
11 the same conditions, restrictions, limitations, penalties and
12 definitions of terms, and employ the same modes of procedure
13 as are prescribed in Sections 2 (except the definition of
14 "retailer maintaining a place of business in this State"), 3
15 (except provisions pertaining to the State rate of tax, and
16 except provisions concerning collection or refunding of the
17 tax by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22
18 of the Use Tax Act, which are not inconsistent with this
19 Section, as fully as if provisions contained in those
20 Sections of the Use Tax Act were set forth herein.
21 Whenever the Department determines that a refund shall be
22 made under this Section to a claimant instead of issuing a
23 credit memorandum, the Department shall notify the State
24 Comptroller, who shall cause the order to be drawn for the
25 amount specified, and to the person named, in such
26 notification from the Department. Such refund shall be paid
27 by the State Treasurer out of the home rule municipal
28 retailers' occupation tax fund.
29 The Department shall forthwith pay over to the State
30 Treasurer, ex officio, as trustee, all taxes, penalties and
31 interest collected hereunder. On or before the 25th day of
32 each calendar month, the Department shall prepare and certify
33 to the State Comptroller the disbursement of stated sums of
34 money to named municipalities, the municipality in each
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1 instance to be that municipality from which the Department
2 during the second preceding calendar month, collected
3 municipal use tax from any person whose Illinois address for
4 titling or registration purposes is given as being in such
5 municipality. The amount to be paid to each municipality
6 shall be the amount (not including credit memoranda)
7 collected hereunder during the second preceding calendar
8 month by the Department, and not including an amount equal to
9 the amount of refunds made during the second preceding
10 calendar month by the Department on behalf of such
11 municipality, less the amount expended during the second
12 preceding month by the Department to be paid from the
13 appropriation to the Department from the Home Rule Municipal
14 Retailers' Occupation Tax Trust Fund. The appropriation to
15 cover the costs incurred by the Department in administering
16 and enforcing this Section shall not exceed 2% of the amount
17 estimated to be deposited into the Home Rule Municipal
18 Retailers' Occupation Tax Trust Fund during the fiscal year
19 for which the appropriation is made. Within 10 days after
20 receipt by the State Comptroller of the disbursement
21 certification to the municipalities provided for in this
22 Section to be given to the State Comptroller by the
23 Department, the State Comptroller shall cause the orders to
24 be drawn for the respective amounts in accordance with the
25 directions contained in that certification.
26 Any ordinance imposing or discontinuing any tax to be
27 collected and enforced by the Department under this Section
28 shall be adopted and a certified copy thereof filed with the
29 Department on or before October 1, whereupon the Department
30 of Revenue shall proceed to administer and enforce this
31 Section on behalf of the municipalities as of January 1 next
32 following such adoption and filing. Beginning April 1, 1998,
33 any ordinance imposing or discontinuing any tax to be
34 collected and enforced by the Department under this Section
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1 shall either (i) be adopted and a certified copy thereof
2 filed with the Department on or before April 1, whereupon the
3 Department of Revenue shall proceed to administer and enforce
4 this Section on behalf of the municipalities as of July 1
5 next following the adoption and filing; or (ii) be adopted
6 and a certified copy thereof filed with the Department on or
7 before October 1, whereupon the Department of Revenue shall
8 proceed to administer and enforce this Section on behalf of
9 the municipalities as of January 1 next following the
10 adoption and filing.
11 Nothing in this subsection (c) shall prevent a home rule
12 municipality from collecting the tax pursuant to subsection
13 (a) in any situation where such tax is not collected by the
14 Department of Revenue under this subsection (c).
15 (d) Any unobligated balance remaining in the Municipal
16 Retailers' Occupation Tax Fund on December 31, 1989, which
17 fund was abolished by Public Act 85-1135, and all receipts of
18 municipal tax as a result of audits of liability periods
19 prior to January 1, 1990, shall be paid into the Local
20 Government Tax Fund, for distribution as provided by this
21 Section prior to the enactment of Public Act 85-1135. All
22 receipts of municipal tax as a result of an assessment not
23 arising from an audit, for liability periods prior to January
24 1, 1990, shall be paid into the Local Government Tax Fund for
25 distribution before July 1, 1990, as provided by this Section
26 prior to the enactment of Public Act 85-1135, and on and
27 after July 1, 1990, all such receipts shall be distributed as
28 provided in Section 6z-18 of the State Finance Act.
29 (e) As used in this Section, "Municipal" and
30 "Municipality" means a city, village or incorporated town,
31 including an incorporated town which has superseded a civil
32 township.
33 (f) This Section shall be known and may be cited as the
34 Home Rule Municipal Use Tax Act.
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1 (Source: P.A. 90-562, eff. 12-16-97; 90-689, eff. 7-31-98.)