Public Act 101-0047
 
HB0938 EnrolledLRB101 03318 AWJ 48326 b



    AN ACT concerning local government.

 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly: 



 
    Section 5. The Illinois Municipal Code is amended  by 
changing Section 8-11-1.3 as follows:
 



    (65 ILCS 5/8-11-1.3)  (from Ch. 24, par. 8-11-1.3)


    Sec. 8-11-1.3. Non-Home Rule Municipal Retailers' 
Occupation Tax Act. The corporate authorities of a non-home 
rule municipality may impose
a tax upon all persons engaged in 
the business of selling tangible
personal property, other than 
on an item of tangible personal property
which is titled and 
registered by an agency of this State's Government,
at retail 
in the municipality for expenditure on
public infrastructure or 
for property tax relief or both as defined in
Section 8-11-1.2 
if approved by
referendum as provided in Section 8-11-1.1, of 
the gross receipts from such
sales made in the course of such 
business.
If the tax is approved by referendum on or after July 
14, 2010 (the effective date of Public Act 96-1057), the 
corporate authorities of a non-home rule municipality may, 
until July 1, 2030 December 31, 2020, use the proceeds of the 
tax for expenditure on municipal operations, in addition to or 
in lieu of any expenditure on public infrastructure or for 
property tax relief. The tax imposed may not be more than 1% 
and may be imposed only in
1/4% increments. The tax may not be 
imposed on tangible personal property taxed at the 1% rate 
under the Retailers' Occupation 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 Revenue.  The 
certificate of registration which is
issued by the Department 
to a retailer under the Retailers' Occupation Tax
Act shall 
permit such retailer 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 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, 5j, 5k, 5l,
6, 6a, 6b, 6c, 6d, 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.

    No municipality may impose a tax under this Section unless 
the municipality
also imposes a tax at the same rate under 
Section 8-11-1.4 of this Code.

    Persons subject to any tax imposed pursuant to the 
authority granted
in this Section may reimburse themselves for 
their seller's tax
liability hereunder by separately stating 
such tax as an additional
charge, which charge may be stated in 
combination, in a single amount,
with State tax which sellers 
are required to collect under the 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 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 such notification 
from the Department.  Such refund shall be paid by
the State 
Treasurer out of the non-home rule municipal retailers'

occupation tax fund.

    The Department shall forthwith pay over to the State 
Treasurer, ex
officio, as trustee, all taxes and penalties 
collected hereunder.  
    As soon as possible after the first day of each month, 
beginning January 1, 2011, upon certification of the Department 
of Revenue, the Comptroller shall order transferred, and the 
Treasurer shall transfer, to the STAR Bonds Revenue Fund the 
local sales tax increment, as defined in the Innovation 
Development and Economy Act, collected under this Section 
during the second preceding calendar month for sales within a 
STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund, 
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
which 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 which the Department 
determines is necessary to offset
any amounts which were 
payable to a different taxing body but were
erroneously paid to 
the municipality, and not including any amounts that are 
transferred to the STAR Bonds Revenue Fund, less 1.5% of the 
remainder, which the Department shall transfer into the Tax 
Compliance and Administration Fund. The Department, at the time 
of each monthly disbursement to the municipalities, shall 
prepare and certify to the State Comptroller the amount to be 
transferred into the Tax Compliance and Administration Fund 
under this Section. Within 10 days after receipt, by the

Comptroller, of the disbursement certification to the 
municipalities and the Tax Compliance and Administration Fund

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.

    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 Federal Constitution as a sale in

interstate or foreign commerce.

    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.

    When certifying the amount of a monthly disbursement to a 
municipality
under this Section, the Department shall increase 
or decrease such 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.

    The Department of Revenue shall implement Public Act 91-649 
this amendatory Act of the 91st
General Assembly so as to 
collect the tax on and after January 1, 2002.

    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 
"Non-Home Rule
Municipal Retailers' Occupation Tax Act".

(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17; 
100-587, eff. 6-4-18; 100-1171, eff. 1-4-19; revised 1-9-19.)



Effective Date:  1/1/2020