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Public Act 92-0739
SB2037 Enrolled LRB9212648BDdvA
AN ACT concerning municipalities.
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 Sections 8-11-1.1, 8-11-1.2, 8-11-1.3, 8-11-1.4, and
8-11-1.5 as follows:
(65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
Sec. 8-11-1.1. Non-home rule municipalities; imposition
of taxes.
(a) The corporate authorities of a non-home rule
municipality may, upon approval of the electors of the
municipality pursuant to subsection (b) of this Section,
impose by ordinance or resolution the 1/2 of 1% tax
authorized in Sections 8-11-1.3, 8-11-1.4 and 8-11-1.5 of
this Act.
(b) The corporate authorities of the municipality may by
ordinance or resolution call for the submission to the
electors of the municipality the question of whether the
municipality shall impose such tax. Such question shall be
certified by the municipal clerk to the election authority in
accordance with Section 28-5 of the Election Code and shall
be in a form in accordance with Section 16-7 of the Election
Code.
If a majority of the electors in the municipality voting
upon the question vote in the affirmative, such tax shall be
imposed.
An ordinance or resolution imposing the tax of not more
than 1/2 of 1% tax hereunder or discontinuing the same shall
be adopted and a certified copy thereof, together with a
certification that the ordinance or resolution received
referendum approval in the case of the imposition of such
tax, filed with the Department of Revenue, on or before the
first day of June, whereupon the Department shall proceed to
administer and enforce the additional tax or to discontinue
the tax, as the case may be, as of the first day of September
next following such adoption and filing. Beginning January 1,
1992, 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 July, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1,
1993, 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. Beginning
October 1, 2002, an ordinance or resolution imposing or
discontinuing the tax under this Section or effecting a
change in the rate of tax must either (i) be adopted and a
certified copy of the ordinance or resolution filed with the
Department on or before the first day of April, whereupon the
Department shall proceed to administer and enforce this
Section as of the first day of July next following the
adoption and filing; or (ii) be adopted and a certified copy
of the ordinance or resolution 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 the adoption and
filing. A non-home rule municipality may file a certified
copy of an ordinance or resolution, with a certification that
the ordinance or resolution received referendum approval in
the case of the imposition of the tax, with the Department of
Revenue, as required under this Section, only after October
2, 2000.
The tax authorized by this Section may not be more than
1/2 of 1% and may be imposed only in 1/4% increments.
(Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.)
(65 ILCS 5/8-11-1.2) (from Ch. 24, par. 8-11-1.2)
Sec. 8-11-1.2. Definition. As used in Sections
8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act:,
(a) "Public infrastructure" means municipal roads and
streets, access roads, bridges, and sidewalks; waste disposal
systems; and water and sewer line extensions, water
distribution and purification facilities, storm water
drainage and retention facilities, and sewage treatment
facilities.
(b) "Property tax relief" means the action of a
municipality to reduce the levy for real estate taxes or
avoid an increase in the levy for real estate taxes that
would otherwise have been required. Property tax relief or
the avoidance of property tax must uniformly apply to all
classes of property.
(Source: P.A. 91-51, eff. 6-30-99.)
(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 at the rate of 1/2 of 1% 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.
The tax imposed may not be more than 1/2 of 1% and may be
imposed only in 1/4% increments. 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
insulin, urine testing materials, syringes, and needles used
by diabetics. 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, 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. 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. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities, 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 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. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.)
(65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
Sec. 8-11-1.4. Non-Home Rule Municipal Service
Occupation Tax Act. The corporate authorities of a non-home
rule municipality may impose a tax upon all persons engaged,
in such municipality, in the business of making sales of
service at the rate of 1/2 of 1% 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 selling price of all tangible
personal property transferred by such servicemen either in
the form of tangible personal property or in the form of real
estate as an incident to a sale of service. The tax imposed
may not be more than 1/2 of 1% and may be imposed only in
1/4% increments. 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 insulin, urine testing
materials, syringes, and needles used by diabetics. 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 or under the Service Occupation Tax Act shall permit
such registrant 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
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 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.
No municipality may impose a tax under this Section
unless the municipality also imposes a tax at the same rate
under Section 8-11-1.3 of this Code.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves
for their serviceman'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 servicemen are authorized to collect under the Service
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
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 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. 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 suppliers and servicemen 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, 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. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and the General Revenue 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.
The Department of Revenue shall implement this amendatory
Act of the 91st General Assembly so as to collect the tax on
and after January 1, 2002.
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.
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.
This Section shall be known and may be cited as the
"Non-Home Rule Municipal Service Occupation Tax Act".
(Source: P.A. 91-51, eff. 6-30-99; 91-649, eff. 1-1-00.)
(65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5)
Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The
corporate authorities of a non-home rule municipality may
impose a tax upon the privilege of using, in such
municipality, any item of tangible personal property which is
purchased at retail from a retailer, and which is titled or
registered with an agency of this State's government, at a
rate of 1/2 of 1% and based on the selling price of such
tangible personal property, as "selling price" is defined in
the Use Tax Act, 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. The tax imposed may not be more than 1/2 of 1% and
may be imposed only in 1/4% increments. Such tax shall be
collected from persons whose Illinois address for title or
registration purposes is given as being in such municipality.
Such tax shall be collected by the municipality imposing such
tax. A non-home rule municipality may not impose and collect
the tax prior to January 1, 2002.
This Section shall be known and may be cited as the
"Non-Home Rule Municipal Use Tax Act".
(Source: P.A. 91-649, eff. 1-1-00.)
Passed in the General Assembly May 08, 2002.
Approved July 25, 2002.
Effective January 01, 2003.
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