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92_SB2319eng SB2319 Engrossed LRB9213656SMpk 1 AN ACT concerning taxes. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Municipal Code is amended by 5 changing Section 8-11-6 as follows: 6 (65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6) 7 Sec. 8-11-6. Home Rule Municipal Use Tax Act. 8 (a) The corporate authorities of a home rule 9 municipality may impose a tax upon the privilege of using, in 10 such municipality, any item of tangible personal property 11 which is purchased at retail from a retailer, and which is 12 titled or registered at a location within the corporate 13 limits of such home rule municipality with an agency of this 14 State's government, at a rate which is an increment of 1/4% 15 and based on the selling price of such tangible personal 16 property, as "selling price" is defined in the Use Tax Act. 17 In home rule municipalities with less than 2,000,000 18 inhabitants, the tax shall be collected by the municipality 19 imposing the tax from persons whose Illinois address for 20 titling or registration purposes is given as being in such 21 municipality. 22 (b) In home rule municipalities with 2,000,000 or more 23 inhabitants, the corporate authorities of the municipality 24 may additionally impose a tax beginning July 1, 1991 upon the 25 privilege of using in the municipality, any item of tangible 26 personal property, other than tangible personal property 27 titled or registered with an agency of the State's 28 government, that is purchased at retail from a retailer 29 located outside the corporate limits of the municipality, at 30 a rate that is an increment of 1/4% not to exceed 1% and 31 based on the selling price of the tangible personal property, SB2319 Engrossed -2- LRB9213656SMpk 1 as "selling price" is defined in the Use Tax Act. Such tax 2 shall be collected from the purchaseror the retailereither 3 by the municipality imposing such tax or by the Department of 4 Revenue pursuant to an agreement between the Department and 5 the municipality. 6 To prevent multiple home rule taxation, the use in a home 7 rule municipality of tangible personal property that is 8 acquired outside the municipality and caused to be brought 9 into the municipality by a person who has already paid a home 10 rule municipal tax in another municipality in respect to the 11 sale, purchase, or use of that property, shall be exempt to 12 the extent of the amount of the tax properly due and paid in 13 the other home rule municipality. 14 (c) If a municipality having 2,000,000 or more 15 inhabitants imposes the tax authorized by subsection (a), 16 then the tax shall be collected by the Illinois Department of 17 Revenue when the property is purchased at retail from a 18 retailer in the county in which the home rule municipality 19 imposing the tax is located, and in all contiguous counties. 20 The tax shall be remitted to the State, or an exemption 21 determination must be obtained from the Department before the 22 title or certificate of registration for the property may be 23 issued. The tax or proof of exemption may be transmitted to 24 the Department by way of the State agency with which, or 25 State officer with whom, the tangible personal property must 26 be titled or registered if the Department and that agency or 27 State officer determine that this procedure will expedite the 28 processing of applications for title or registration. 29 The Department shall have full power to administer and 30 enforce this Section to collect all taxes, penalties and 31 interest due hereunder, to dispose of taxes, penalties and 32 interest so collected in the manner hereinafter provided, and 33 determine all rights to credit memoranda or refunds arising 34 on account of the erroneous payment of tax, penalty or SB2319 Engrossed -3- LRB9213656SMpk 1 interest hereunder. In the administration of and compliance 2 with this Section the Department and persons who are subject 3 to this Section shall have the same rights, remedies, 4 privileges, immunities, powers and duties, and be subject to 5 the same conditions, restrictions, limitations, penalties and 6 definitions of terms, and employ the same modes of procedure 7 as are prescribed in Sections 2 (except the definition of 8 "retailer maintaining a place of business in this State"), 3 9 (except provisions pertaining to the State rate of tax, and 10 except provisions concerning collection or refunding of the 11 tax by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22 12 of the Use Tax Act, which are not inconsistent with this 13 Section, as fully as if provisions contained in those 14 Sections of the Use Tax Act were set forth herein. 15 Whenever the Department determines that a refund shall be 16 made under this Section to a claimant instead of issuing a 17 credit memorandum, the Department shall notify the State 18 Comptroller, who shall cause the order to be drawn for the 19 amount specified, and to the person named, in such 20 notification from the Department. Such refund shall be paid 21 by the State Treasurer out of the home rule municipal 22 retailers' occupation tax fund. 23 The Department shall forthwith pay over to the State 24 Treasurer, ex officio, as trustee, all taxes, penalties and 25 interest collected hereunder. On or before the 25th day of 26 each calendar month, the Department shall prepare and certify 27 to the State Comptroller the disbursement of stated sums of 28 money to named municipalities, the municipality in each 29 instance to be that municipality from which the Department 30 during the second preceding calendar month, collected 31 municipal use tax from any person whose Illinois address for 32 titling or registration purposes is given as being in such 33 municipality. The amount to be paid to each municipality 34 shall be the amount (not including credit memoranda) SB2319 Engrossed -4- LRB9213656SMpk 1 collected hereunder during the second preceding calendar 2 month by the Department, and not including an amount equal to 3 the amount of refunds made during the second preceding 4 calendar month by the Department on behalf of such 5 municipality, less the amount expended during the second 6 preceding month by the Department to be paid from the 7 appropriation to the Department from the Home Rule Municipal 8 Retailers' Occupation Tax Trust Fund. The appropriation to 9 cover the costs incurred by the Department in administering 10 and enforcing this Section shall not exceed 2% of the amount 11 estimated to be deposited into the Home Rule Municipal 12 Retailers' Occupation Tax Trust Fund during the fiscal year 13 for which the appropriation is made. Within 10 days after 14 receipt by the State Comptroller of the disbursement 15 certification to the municipalities provided for in this 16 Section to be given to the State Comptroller by the 17 Department, the State Comptroller shall cause the orders to 18 be drawn for the respective amounts in accordance with the 19 directions contained in that certification. 20 Any ordinance imposing or discontinuing any tax to be 21 collected and enforced by the Department under this Section 22 shall be adopted and a certified copy thereof filed with the 23 Department on or before October 1, whereupon the Department 24 of Revenue shall proceed to administer and enforce this 25 Section on behalf of the municipalities as of January 1 next 26 following such adoption and filing. Beginning April 1, 1998, 27 any ordinance imposing or discontinuing any tax to be 28 collected and enforced by the Department under this Section 29 shall either (i) be adopted and a certified copy thereof 30 filed with the Department on or before April 1, whereupon the 31 Department of Revenue shall proceed to administer and enforce 32 this Section on behalf of the municipalities as of July 1 33 next following the adoption and filing; or (ii) be adopted 34 and a certified copy thereof filed with the Department on or SB2319 Engrossed -5- LRB9213656SMpk 1 before October 1, whereupon the Department of Revenue shall 2 proceed to administer and enforce this Section on behalf of 3 the municipalities as of January 1 next following the 4 adoption and filing. 5 Nothing in this subsection (c) shall prevent a home rule 6 municipality from collecting the tax pursuant to subsection 7 (a) in any situation where such tax is not collected by the 8 Department of Revenue under this subsection (c). 9 (d) Any unobligated balance remaining in the Municipal 10 Retailers' Occupation Tax Fund on December 31, 1989, which 11 fund was abolished by Public Act 85-1135, and all receipts of 12 municipal tax as a result of audits of liability periods 13 prior to January 1, 1990, shall be paid into the Local 14 Government Tax Fund, for distribution as provided by this 15 Section prior to the enactment of Public Act 85-1135. All 16 receipts of municipal tax as a result of an assessment not 17 arising from an audit, for liability periods prior to January 18 1, 1990, shall be paid into the Local Government Tax Fund for 19 distribution before July 1, 1990, as provided by this Section 20 prior to the enactment of Public Act 85-1135, and on and 21 after July 1, 1990, all such receipts shall be distributed as 22 provided in Section 6z-18 of the State Finance Act. 23 (e) As used in this Section, "Municipal" and 24 "Municipality" means a city, village or incorporated town, 25 including an incorporated town which has superseded a civil 26 township. 27 (f) This Section shall be known and may be cited as the 28 Home Rule Municipal Use Tax Act. 29 (Source: P.A. 91-51, eff. 6-30-99; 92-221, eff. 8-2-01.) 30 Section 99. Effective date. This Act takes effect upon 31 becoming law.