Illinois 2023-2024 Regular Session

Illinois House Bill HB4018 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4018 Introduced , by Rep. Mary Beth Canty SYNOPSIS AS INTRODUCED: 30 ILCS 105/6z-18 from Ch. 127, par. 142z-18 65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1 65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3 65 ILCS 5/8-11-1.6 65 ILCS 5/8-11-1.7 65 ILCS 5/8-11-16 from Ch. 24, par. 8-11-16 65 ILCS 5/8-11-21 65 ILCS 5/8-11-24 new Amends the Illinois Municipal Code. Provides that a municipality may commence an action in the circuit court against another municipality to recover sales tax revenues generated by a business in the plaintiff municipality but mistakenly paid to the defendant municipality. Provides that the action must be commenced no later than 20 years after a payment is mistakenly paid to a municipality. Provides that a municipality may recover both the municipality's share of the moneys from the Local Government Tax Fund and the municipality's own local sales taxes that were mistakenly paid. Provides that actions of the Department of Revenue to offset amounts erroneously disbursed within the 6 months preceding the time a misallocation is discovered is not the exclusive remedy of a municipality and does not limit the rights of a municipality to pursue an action against another municipality. Provides that the changes made by the amendatory Act are declarative of existing law and shall be applied retroactively when substantively applicable, including all pending and previously pending actions without regard to when the cause of action accrued. Further amends the Illinois Municipal Code and amends the State Finance Act making conforming changes. LRB103 31206 AWJ 58106 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4018 Introduced , by Rep. Mary Beth Canty SYNOPSIS AS INTRODUCED: 30 ILCS 105/6z-18 from Ch. 127, par. 142z-18 65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1 65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3 65 ILCS 5/8-11-1.6 65 ILCS 5/8-11-1.7 65 ILCS 5/8-11-16 from Ch. 24, par. 8-11-16 65 ILCS 5/8-11-21 65 ILCS 5/8-11-24 new 30 ILCS 105/6z-18 from Ch. 127, par. 142z-18 65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1 65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3 65 ILCS 5/8-11-1.6 65 ILCS 5/8-11-1.7 65 ILCS 5/8-11-16 from Ch. 24, par. 8-11-16 65 ILCS 5/8-11-21 65 ILCS 5/8-11-24 new Amends the Illinois Municipal Code. Provides that a municipality may commence an action in the circuit court against another municipality to recover sales tax revenues generated by a business in the plaintiff municipality but mistakenly paid to the defendant municipality. Provides that the action must be commenced no later than 20 years after a payment is mistakenly paid to a municipality. Provides that a municipality may recover both the municipality's share of the moneys from the Local Government Tax Fund and the municipality's own local sales taxes that were mistakenly paid. Provides that actions of the Department of Revenue to offset amounts erroneously disbursed within the 6 months preceding the time a misallocation is discovered is not the exclusive remedy of a municipality and does not limit the rights of a municipality to pursue an action against another municipality. Provides that the changes made by the amendatory Act are declarative of existing law and shall be applied retroactively when substantively applicable, including all pending and previously pending actions without regard to when the cause of action accrued. Further amends the Illinois Municipal Code and amends the State Finance Act making conforming changes. LRB103 31206 AWJ 58106 b LRB103 31206 AWJ 58106 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4018 Introduced , by Rep. Mary Beth Canty SYNOPSIS AS INTRODUCED:
3	3	30 ILCS 105/6z-18 from Ch. 127, par. 142z-18 65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1 65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3 65 ILCS 5/8-11-1.6 65 ILCS 5/8-11-1.7 65 ILCS 5/8-11-16 from Ch. 24, par. 8-11-16 65 ILCS 5/8-11-21 65 ILCS 5/8-11-24 new 30 ILCS 105/6z-18 from Ch. 127, par. 142z-18 65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1 65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3 65 ILCS 5/8-11-1.6 65 ILCS 5/8-11-1.7 65 ILCS 5/8-11-16 from Ch. 24, par. 8-11-16 65 ILCS 5/8-11-21 65 ILCS 5/8-11-24 new
4	4	30 ILCS 105/6z-18 from Ch. 127, par. 142z-18
5	5	65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1
6	6	65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3
7	7	65 ILCS 5/8-11-1.6
8	8	65 ILCS 5/8-11-1.7
9	9	65 ILCS 5/8-11-16 from Ch. 24, par. 8-11-16
10	10	65 ILCS 5/8-11-21
11	11	65 ILCS 5/8-11-24 new
12	12	Amends the Illinois Municipal Code. Provides that a municipality may commence an action in the circuit court against another municipality to recover sales tax revenues generated by a business in the plaintiff municipality but mistakenly paid to the defendant municipality. Provides that the action must be commenced no later than 20 years after a payment is mistakenly paid to a municipality. Provides that a municipality may recover both the municipality's share of the moneys from the Local Government Tax Fund and the municipality's own local sales taxes that were mistakenly paid. Provides that actions of the Department of Revenue to offset amounts erroneously disbursed within the 6 months preceding the time a misallocation is discovered is not the exclusive remedy of a municipality and does not limit the rights of a municipality to pursue an action against another municipality. Provides that the changes made by the amendatory Act are declarative of existing law and shall be applied retroactively when substantively applicable, including all pending and previously pending actions without regard to when the cause of action accrued. Further amends the Illinois Municipal Code and amends the State Finance Act making conforming changes.
13	13	LRB103 31206 AWJ 58106 b LRB103 31206 AWJ 58106 b
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15	15	A BILL FOR
16	16	HB4018LRB103 31206 AWJ 58106 b HB4018 LRB103 31206 AWJ 58106 b
17	17	HB4018 LRB103 31206 AWJ 58106 b
18	18	1 AN ACT concerning local government.
19	19	2 Be it enacted by the People of the State of Illinois,
20	20	3 represented in the General Assembly:
21	21	4 Section 5. The State Finance Act is amended by changing
22	22	5 Section 6z-18 as follows:
23	23	6 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
24	24	7 Sec. 6z-18. Local Government Tax Fund. A portion of the
25	25	8 money paid into the Local Government Tax Fund from sales of
26	26	9 tangible personal property taxed at the 1% rate under the
27	27	10 Retailers' Occupation Tax Act and the Service Occupation Tax
28	28	11 Act, which occurred in municipalities, shall be distributed to
29	29	12 each municipality based upon the sales which occurred in that
30	30	13 municipality. The remainder shall be distributed to each
31	31	14 county based upon the sales which occurred in the
32	32	15 unincorporated area of that county.
33	33	16 Moneys transferred from the Grocery Tax Replacement Fund
34	34	17 to the Local Government Tax Fund under Section 6z-130 shall be
35	35	18 treated under this Section in the same manner as if they had
36	36	19 been remitted with the return on which they were reported.
37	37	20 A portion of the money paid into the Local Government Tax
38	38	21 Fund from the 6.25% general use tax rate on the selling price
39	39	22 of tangible personal property which is purchased outside
40	40	23 Illinois at retail from a retailer and which is titled or
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44	44	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4018 Introduced , by Rep. Mary Beth Canty SYNOPSIS AS INTRODUCED:
45	45	30 ILCS 105/6z-18 from Ch. 127, par. 142z-18 65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1 65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3 65 ILCS 5/8-11-1.6 65 ILCS 5/8-11-1.7 65 ILCS 5/8-11-16 from Ch. 24, par. 8-11-16 65 ILCS 5/8-11-21 65 ILCS 5/8-11-24 new 30 ILCS 105/6z-18 from Ch. 127, par. 142z-18 65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1 65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3 65 ILCS 5/8-11-1.6 65 ILCS 5/8-11-1.7 65 ILCS 5/8-11-16 from Ch. 24, par. 8-11-16 65 ILCS 5/8-11-21 65 ILCS 5/8-11-24 new
46	46	30 ILCS 105/6z-18 from Ch. 127, par. 142z-18
47	47	65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1
48	48	65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3
49	49	65 ILCS 5/8-11-1.6
50	50	65 ILCS 5/8-11-1.7
51	51	65 ILCS 5/8-11-16 from Ch. 24, par. 8-11-16
52	52	65 ILCS 5/8-11-21
53	53	65 ILCS 5/8-11-24 new
54	54	Amends the Illinois Municipal Code. Provides that a municipality may commence an action in the circuit court against another municipality to recover sales tax revenues generated by a business in the plaintiff municipality but mistakenly paid to the defendant municipality. Provides that the action must be commenced no later than 20 years after a payment is mistakenly paid to a municipality. Provides that a municipality may recover both the municipality's share of the moneys from the Local Government Tax Fund and the municipality's own local sales taxes that were mistakenly paid. Provides that actions of the Department of Revenue to offset amounts erroneously disbursed within the 6 months preceding the time a misallocation is discovered is not the exclusive remedy of a municipality and does not limit the rights of a municipality to pursue an action against another municipality. Provides that the changes made by the amendatory Act are declarative of existing law and shall be applied retroactively when substantively applicable, including all pending and previously pending actions without regard to when the cause of action accrued. Further amends the Illinois Municipal Code and amends the State Finance Act making conforming changes.
55	55	LRB103 31206 AWJ 58106 b LRB103 31206 AWJ 58106 b
56	56	LRB103 31206 AWJ 58106 b
57	57	A BILL FOR
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63	63	30 ILCS 105/6z-18 from Ch. 127, par. 142z-18
64	64	65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1
65	65	65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3
66	66	65 ILCS 5/8-11-1.6
67	67	65 ILCS 5/8-11-1.7
68	68	65 ILCS 5/8-11-16 from Ch. 24, par. 8-11-16
69	69	65 ILCS 5/8-11-21
70	70	65 ILCS 5/8-11-24 new
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89	89	1 registered by any agency of this State's government shall be
90	90	2 distributed to municipalities as provided in this paragraph.
91	91	3 Each municipality shall receive the amount attributable to
92	92	4 sales for which Illinois addresses for titling or registration
93	93	5 purposes are given as being in such municipality. The
94	94	6 remainder of the money paid into the Local Government Tax Fund
95	95	7 from such sales shall be distributed to counties. Each county
96	96	8 shall receive the amount attributable to sales for which
97	97	9 Illinois addresses for titling or registration purposes are
98	98	10 given as being located in the unincorporated area of such
99	99	11 county.
100	100	12 A portion of the money paid into the Local Government Tax
101	101	13 Fund from the 6.25% general rate (and, beginning July 1, 2000
102	102	14 and through December 31, 2000, the 1.25% rate on motor fuel and
103	103	15 gasohol, and beginning on August 6, 2010 through August 15,
104	104	16 2010, and beginning again on August 5, 2022 through August 14,
105	105	17 2022, the 1.25% rate on sales tax holiday items) on sales
106	106	18 subject to taxation under the Retailers' Occupation Tax Act
107	107	19 and the Service Occupation Tax Act, which occurred in
108	108	20 municipalities, shall be distributed to each municipality,
109	109	21 based upon the sales which occurred in that municipality. The
110	110	22 remainder shall be distributed to each county, based upon the
111	111	23 sales which occurred in the unincorporated area of such
112	112	24 county.
113	113	25 For the purpose of determining allocation to the local
114	114	26 government unit, a retail sale by a producer of coal or other
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125	125	1 mineral mined in Illinois is a sale at retail at the place
126	126	2 where the coal or other mineral mined in Illinois is extracted
127	127	3 from the earth. This paragraph does not apply to coal or other
128	128	4 mineral when it is delivered or shipped by the seller to the
129	129	5 purchaser at a point outside Illinois so that the sale is
130	130	6 exempt under the United States Constitution as a sale in
131	131	7 interstate or foreign commerce.
132	132	8 Whenever the Department determines that a refund of money
133	133	9 paid into the Local Government Tax Fund should be made to a
134	134	10 claimant instead of issuing a credit memorandum, the
135	135	11 Department shall notify the State Comptroller, who shall cause
136	136	12 the order to be drawn for the amount specified, and to the
137	137	13 person named, in such notification from the Department. Such
138	138	14 refund shall be paid by the State Treasurer out of the Local
139	139	15 Government Tax Fund.
140	140	16 As soon as possible after the first day of each month,
141	141	17 beginning January 1, 2011, upon certification of the
142	142	18 Department of Revenue, the Comptroller shall order
143	143	19 transferred, and the Treasurer shall transfer, to the STAR
144	144	20 Bonds Revenue Fund the local sales tax increment, as defined
145	145	21 in the Innovation Development and Economy Act, collected
146	146	22 during the second preceding calendar month for sales within a
147	147	23 STAR bond district and deposited into the Local Government Tax
148	148	24 Fund, less 3% of that amount, which shall be transferred into
149	149	25 the Tax Compliance and Administration Fund and shall be used
150	150	26 by the Department, subject to appropriation, to cover the
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161	161	1 costs of the Department in administering the Innovation
162	162	2 Development and Economy Act.
163	163	3 After the monthly transfer to the STAR Bonds Revenue Fund,
164	164	4 on or before the 25th day of each calendar month, the
165	165	5 Department shall prepare and certify to the Comptroller the
166	166	6 disbursement of stated sums of money to named municipalities
167	167	7 and counties, the municipalities and counties to be those
168	168	8 entitled to distribution of taxes or penalties paid to the
169	169	9 Department during the second preceding calendar month. The
170	170	10 amount to be paid to each municipality or county shall be the
171	171	11 amount (not including credit memoranda) collected during the
172	172	12 second preceding calendar month by the Department and paid
173	173	13 into the Local Government Tax Fund, plus an amount the
174	174	14 Department determines is necessary to offset any amounts which
175	175	15 were erroneously paid to a different taxing body, and not
176	176	16 including an amount equal to the amount of refunds made during
177	177	17 the second preceding calendar month by the Department, and not
178	178	18 including any amount which the Department determines is
179	179	19 necessary to offset any amounts which are payable to a
180	180	20 different taxing body but were erroneously paid to the
181	181	21 municipality or county, and not including any amounts that are
182	182	22 transferred to the STAR Bonds Revenue Fund. Within 10 days
183	183	23 after receipt, by the Comptroller, of the disbursement
184	184	24 certification to the municipalities and counties, provided for
185	185	25 in this Section to be given to the Comptroller by the
186	186	26 Department, the Comptroller shall cause the orders to be drawn
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197	197	1 for the respective amounts in accordance with the directions
198	198	2 contained in such certification.
199	199	3 When certifying the amount of monthly disbursement to a
200	200	4 municipality or county under this Section, the Department
201	201	5 shall increase or decrease that amount by an amount necessary
202	202	6 to offset any misallocation of previous disbursements. The
203	203	7 offset amount shall be the amount erroneously disbursed within
204	204	8 the 6 months preceding the time a misallocation is discovered.
205	205	9 The offset under this paragraph is not the exclusive remedy a
206	206	10 municipality has for misallocation of previous disbursements.
207	207	11 This paragraph does not limit the rights of a municipality to
208	208	12 pursue an action under Section 8-11-24 of the Illinois
209	209	13 Municipal Code.
210	210	14 The provisions directing the distributions from the
211	211	15 special fund in the State treasury Treasury provided for in
212	212	16 this Section shall constitute an irrevocable and continuing
213	213	17 appropriation of all amounts as provided herein. The State
214	214	18 Treasurer and State Comptroller are hereby authorized to make
215	215	19 distributions as provided in this Section.
216	216	20 In construing any development, redevelopment, annexation,
217	217	21 preannexation, or other lawful agreement in effect prior to
218	218	22 September 1, 1990, which describes or refers to receipts from
219	219	23 a county or municipal retailers' occupation tax, use tax or
220	220	24 service occupation tax which now cannot be imposed, such
221	221	25 description or reference shall be deemed to include the
222	222	26 replacement revenue for such abolished taxes, distributed from
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233	233	1 the Local Government Tax Fund.
234	234	2 As soon as possible after March 8, 2013 (the effective
235	235	3 date of Public Act 98-3) this amendatory Act of the 98th
236	236	4 General Assembly, the State Comptroller shall order and the
237	237	5 State Treasurer shall transfer $6,600,000 from the Local
238	238	6 Government Tax Fund to the Illinois State Medical Disciplinary
239	239	7 Fund.
240	240	8 (Source: P.A. 102-700, Article 60, Section 60-10, eff.
241	241	9 4-19-22; 102-700, Article 65, Section 65-15, eff. 4-19-22;
242	242	10 revised 6-2-22.)
243	243	11 Section 10. The Illinois Municipal Code is amended by
244	244	12 changing Sections 8-11-1, 8-11-1.3, 8-11-1.6, 8-11-1.7,
245	245	13 8-11-16, and 8-11-21 and by adding Section 8-11-24 as follows:
246	246	14 (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
247	247	15 Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
248	248	16 Act. The corporate authorities of a home rule municipality may
249	249	17 impose a tax upon all persons engaged in the business of
250	250	18 selling tangible personal property, other than an item of
251	251	19 tangible personal property titled or registered with an agency
252	252	20 of this State's government, at retail in the municipality on
253	253	21 the gross receipts from these sales made in the course of such
254	254	22 business. If imposed, the tax shall only be imposed in 1/4%
255	255	23 increments. On and after September 1, 1991, this additional
256	256	24 tax may not be imposed on tangible personal property taxed at
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267	267	1 the 1% rate under the Retailers' Occupation Tax Act (or at the
268	268	2 0% rate imposed under this amendatory Act of the 102nd General
269	269	3 Assembly). Beginning December 1, 2019, this tax is not imposed
270	270	4 on sales of aviation fuel unless the tax revenue is expended
271	271	5 for airport-related purposes. If a municipality does not have
272	272	6 an airport-related purpose to which it dedicates aviation fuel
273	273	7 tax revenue, then aviation fuel is excluded from the tax. Each
274	274	8 municipality must comply with the certification requirements
275	275	9 for airport-related purposes under Section 2-22 of the
276	276	10 Retailers' Occupation Tax Act. For purposes of this Section,
277	277	11 "airport-related purposes" has the meaning ascribed in Section
278	278	12 6z-20.2 of the State Finance Act. This exclusion for aviation
279	279	13 fuel only applies for so long as the revenue use requirements
280	280	14 of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
281	281	15 municipality. The changes made to this Section by this
282	282	16 amendatory Act of the 101st General Assembly are a denial and
283	283	17 limitation of home rule powers and functions under subsection
284	284	18 (g) of Section 6 of Article VII of the Illinois Constitution.
285	285	19 The tax imposed by a home rule municipality under this Section
286	286	20 and all civil penalties that may be assessed as an incident of
287	287	21 the tax shall be collected and enforced by the State
288	288	22 Department of Revenue. The certificate of registration that is
289	289	23 issued by the Department to a retailer under the Retailers'
290	290	24 Occupation Tax Act shall permit the retailer to engage in a
291	291	25 business that is taxable under any ordinance or resolution
292	292	26 enacted pursuant to this Section without registering
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303	303	1 separately with the Department under such ordinance or
304	304	2 resolution or under this Section. The Department shall have
305	305	3 full power to administer and enforce this Section; to collect
306	306	4 all taxes and penalties due hereunder; to dispose of taxes and
307	307	5 penalties so collected in the manner hereinafter provided; and
308	308	6 to determine all rights to credit memoranda arising on account
309	309	7 of the erroneous payment of tax or penalty hereunder. In the
310	310	8 administration of, and compliance with, this Section the
311	311	9 Department and persons who are subject to this Section shall
312	312	10 have the same rights, remedies, privileges, immunities, powers
313	313	11 and duties, and be subject to the same conditions,
314	314	12 restrictions, limitations, penalties and definitions of terms,
315	315	13 and employ the same modes of procedure, as are prescribed in
316	316	14 Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65
317	317	15 (in respect to all provisions therein other than the State
318	318	16 rate of tax), 2c, 3 (except as to the disposition of taxes and
319	319	17 penalties collected, and except that the retailer's discount
320	320	18 is not allowed for taxes paid on aviation fuel that are subject
321	321	19 to the revenue use requirements of 49 U.S.C. 47107(b) and 49
322	322	20 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
323	323	21 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
324	324	22 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
325	325	23 Penalty and Interest Act, as fully as if those provisions were
326	326	24 set forth herein.
327	327	25 No tax may be imposed by a home rule municipality under
328	328	26 this Section unless the municipality also imposes a tax at the
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339	339	1 same rate under Section 8-11-5 of this Act.
340	340	2 Persons subject to any tax imposed under the authority
341	341	3 granted in this Section may reimburse themselves for their
342	342	4 seller's tax liability hereunder by separately stating that
343	343	5 tax as an additional charge, which charge may be stated in
344	344	6 combination, in a single amount, with State tax which sellers
345	345	7 are required to collect under the Use Tax Act, pursuant to such
346	346	8 bracket schedules as the Department may prescribe.
347	347	9 Whenever the Department determines that a refund should be
348	348	10 made under this Section to a claimant instead of issuing a
349	349	11 credit memorandum, the Department shall notify the State
350	350	12 Comptroller, who shall cause the order to be drawn for the
351	351	13 amount specified and to the person named in the notification
352	352	14 from the Department. The refund shall be paid by the State
353	353	15 Treasurer out of the home rule municipal retailers' occupation
354	354	16 tax fund or the Local Government Aviation Trust Fund, as
355	355	17 appropriate.
356	356	18 Except as otherwise provided in this paragraph, the
357	357	19 Department shall immediately pay over to the State Treasurer,
358	358	20 ex officio, as trustee, all taxes and penalties collected
359	359	21 hereunder for deposit into the Home Rule Municipal Retailers'
360	360	22 Occupation Tax Fund. Taxes and penalties collected on aviation
361	361	23 fuel sold on or after December 1, 2019, shall be immediately
362	362	24 paid over by the Department to the State Treasurer, ex
363	363	25 officio, as trustee, for deposit into the Local Government
364	364	26 Aviation Trust Fund. The Department shall only pay moneys into
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371	371
372	372
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374	374	HB4018 - 10 - LRB103 31206 AWJ 58106 b
375	375	1 the Local Government Aviation Trust Fund under this Section
376	376	2 for so long as the revenue use requirements of 49 U.S.C.
377	377	3 47107(b) and 49 U.S.C. 47133 are binding on the State.
378	378	4 As soon as possible after the first day of each month,
379	379	5 beginning January 1, 2011, upon certification of the
380	380	6 Department of Revenue, the Comptroller shall order
381	381	7 transferred, and the Treasurer shall transfer, to the STAR
382	382	8 Bonds Revenue Fund the local sales tax increment, as defined
383	383	9 in the Innovation Development and Economy Act, collected under
384	384	10 this Section during the second preceding calendar month for
385	385	11 sales within a STAR bond district.
386	386	12 After the monthly transfer to the STAR Bonds Revenue Fund,
387	387	13 on or before the 25th day of each calendar month, the
388	388	14 Department shall prepare and certify to the Comptroller the
389	389	15 disbursement of stated sums of money to named municipalities,
390	390	16 the municipalities to be those from which retailers have paid
391	391	17 taxes or penalties hereunder to the Department during the
392	392	18 second preceding calendar month. The amount to be paid to each
393	393	19 municipality shall be the amount (not including credit
394	394	20 memoranda and not including taxes and penalties collected on
395	395	21 aviation fuel sold on or after December 1, 2019) collected
396	396	22 hereunder during the second preceding calendar month by the
397	397	23 Department plus an amount the Department determines is
398	398	24 necessary to offset any amounts that were erroneously paid to
399	399	25 a different taxing body, and not including an amount equal to
400	400	26 the amount of refunds made during the second preceding
401	401
402	402
403	403
404	404
405	405
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407	407
408	408
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410	410	HB4018 - 11 - LRB103 31206 AWJ 58106 b
411	411	1 calendar month by the Department on behalf of such
412	412	2 municipality, and not including any amount that the Department
413	413	3 determines is necessary to offset any amounts that were
414	414	4 payable to a different taxing body but were erroneously paid
415	415	5 to the municipality, and not including any amounts that are
416	416	6 transferred to the STAR Bonds Revenue Fund, less 1.5% of the
417	417	7 remainder, which the Department shall transfer into the Tax
418	418	8 Compliance and Administration Fund. The Department, at the
419	419	9 time of each monthly disbursement to the municipalities, shall
420	420	10 prepare and certify to the State Comptroller the amount to be
421	421	11 transferred into the Tax Compliance and Administration Fund
422	422	12 under this Section. Within 10 days after receipt by the
423	423	13 Comptroller of the disbursement certification to the
424	424	14 municipalities and the Tax Compliance and Administration Fund
425	425	15 provided for in this Section to be given to the Comptroller by
426	426	16 the Department, the Comptroller shall cause the orders to be
427	427	17 drawn for the respective amounts in accordance with the
428	428	18 directions contained in the certification.
429	429	19 In addition to the disbursement required by the preceding
430	430	20 paragraph and in order to mitigate delays caused by
431	431	21 distribution procedures, an allocation shall, if requested, be
432	432	22 made within 10 days after January 14, 1991, and in November of
433	433	23 1991 and each year thereafter, to each municipality that
434	434	24 received more than $500,000 during the preceding fiscal year,
435	435	25 (July 1 through June 30) whether collected by the municipality
436	436	26 or disbursed by the Department as required by this Section.
437	437
438	438
439	439
440	440
441	441
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443	443
444	444
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446	446	HB4018 - 12 - LRB103 31206 AWJ 58106 b
447	447	1 Within 10 days after January 14, 1991, participating
448	448	2 municipalities shall notify the Department in writing of their
449	449	3 intent to participate. In addition, for the initial
450	450	4 distribution, participating municipalities shall certify to
451	451	5 the Department the amounts collected by the municipality for
452	452	6 each month under its home rule occupation and service
453	453	7 occupation tax during the period July 1, 1989 through June 30,
454	454	8 1990. The allocation within 10 days after January 14, 1991,
455	455	9 shall be in an amount equal to the monthly average of these
456	456	10 amounts, excluding the 2 months of highest receipts. The
457	457	11 monthly average for the period of July 1, 1990 through June 30,
458	458	12 1991 will be determined as follows: the amounts collected by
459	459	13 the municipality under its home rule occupation and service
460	460	14 occupation tax during the period of July 1, 1990 through
461	461	15 September 30, 1990, plus amounts collected by the Department
462	462	16 and paid to such municipality through June 30, 1991, excluding
463	463	17 the 2 months of highest receipts. The monthly average for each
464	464	18 subsequent period of July 1 through June 30 shall be an amount
465	465	19 equal to the monthly distribution made to each such
466	466	20 municipality under the preceding paragraph during this period,
467	467	21 excluding the 2 months of highest receipts. The distribution
468	468	22 made in November 1991 and each year thereafter under this
469	469	23 paragraph and the preceding paragraph shall be reduced by the
470	470	24 amount allocated and disbursed under this paragraph in the
471	471	25 preceding period of July 1 through June 30. The Department
472	472	26 shall prepare and certify to the Comptroller for disbursement
473	473
474	474
475	475
476	476
477	477
478	478	HB4018 - 12 - LRB103 31206 AWJ 58106 b
479	479
480	480
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482	482	HB4018 - 13 - LRB103 31206 AWJ 58106 b
483	483	1 the allocations made in accordance with this paragraph.
484	484	2 For the purpose of determining the local governmental unit
485	485	3 whose tax is applicable, a retail sale by a producer of coal or
486	486	4 other mineral mined in Illinois is a sale at retail at the
487	487	5 place where the coal or other mineral mined in Illinois is
488	488	6 extracted from the earth. This paragraph does not apply to
489	489	7 coal or other mineral when it is delivered or shipped by the
490	490	8 seller to the purchaser at a point outside Illinois so that the
491	491	9 sale is exempt under the United States Constitution as a sale
492	492	10 in interstate or foreign commerce.
493	493	11 Nothing in this Section shall be construed to authorize a
494	494	12 municipality to impose a tax upon the privilege of engaging in
495	495	13 any business which under the Constitution of the United States
496	496	14 may not be made the subject of taxation by this State.
497	497	15 An ordinance or resolution imposing or discontinuing a tax
498	498	16 hereunder or effecting a change in the rate thereof shall be
499	499	17 adopted and a certified copy thereof filed with the Department
500	500	18 on or before the first day of June, whereupon the Department
501	501	19 shall proceed to administer and enforce this Section as of the
502	502	20 first day of September next following the adoption and filing.
503	503	21 Beginning January 1, 1992, an ordinance or resolution imposing
504	504	22 or discontinuing the tax hereunder or effecting a change in
505	505	23 the rate thereof shall be adopted and a certified copy thereof
506	506	24 filed with the Department on or before the first day of July,
507	507	25 whereupon the Department shall proceed to administer and
508	508	26 enforce this Section as of the first day of October next
509	509
510	510
511	511
512	512
513	513
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515	515
516	516
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518	518	HB4018 - 14 - LRB103 31206 AWJ 58106 b
519	519	1 following such adoption and filing. Beginning January 1, 1993,
520	520	2 an ordinance or resolution imposing or discontinuing the tax
521	521	3 hereunder or effecting a change in the rate thereof shall be
522	522	4 adopted and a certified copy thereof filed with the Department
523	523	5 on or before the first day of October, whereupon the
524	524	6 Department shall proceed to administer and enforce this
525	525	7 Section as of the first day of January next following the
526	526	8 adoption and filing. However, a municipality located in a
527	527	9 county with a population in excess of 3,000,000 that elected
528	528	10 to become a home rule unit at the general primary election in
529	529	11 1994 may adopt an ordinance or resolution imposing the tax
530	530	12 under this Section and file a certified copy of the ordinance
531	531	13 or resolution with the Department on or before July 1, 1994.
532	532	14 The Department shall then proceed to administer and enforce
533	533	15 this Section as of October 1, 1994. Beginning April 1, 1998, an
534	534	16 ordinance or resolution imposing or discontinuing the tax
535	535	17 hereunder or effecting a change in the rate thereof shall
536	536	18 either (i) be adopted and a certified copy thereof filed with
537	537	19 the Department on or before the first day of April, whereupon
538	538	20 the Department shall proceed to administer and enforce this
539	539	21 Section as of the first day of July next following the adoption
540	540	22 and filing; or (ii) be adopted and a certified copy thereof
541	541	23 filed with the Department on or before the first day of
542	542	24 October, whereupon the Department shall proceed to administer
543	543	25 and enforce this Section as of the first day of January next
544	544	26 following the adoption and filing.
545	545
546	546
547	547
548	548
549	549
550	550	HB4018 - 14 - LRB103 31206 AWJ 58106 b
551	551
552	552
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554	554	HB4018 - 15 - LRB103 31206 AWJ 58106 b
555	555	1 When certifying the amount of a monthly disbursement to a
556	556	2 municipality under this Section, the Department shall increase
557	557	3 or decrease the amount by an amount necessary to offset any
558	558	4 misallocation of previous disbursements. The offset amount
559	559	5 shall be the amount erroneously disbursed within the previous
560	560	6 6 months from the time a misallocation is discovered. The
561	561	7 offset under this paragraph is not the exclusive remedy a
562	562	8 municipality has for misallocation of previous disbursements.
563	563	9 This paragraph does not limit the rights of a municipality to
564	564	10 pursue an action under Section 8-11-24 of the Illinois
565	565	11 Municipal Code.
566	566	12 Any unobligated balance remaining in the Municipal
567	567	13 Retailers' Occupation Tax Fund on December 31, 1989, which
568	568	14 fund was abolished by Public Act 85-1135, and all receipts of
569	569	15 municipal tax as a result of audits of liability periods prior
570	570	16 to January 1, 1990, shall be paid into the Local Government Tax
571	571	17 Fund for distribution as provided by this Section prior to the
572	572	18 enactment of Public Act 85-1135. All receipts of municipal tax
573	573	19 as a result of an assessment not arising from an audit, for
574	574	20 liability periods prior to January 1, 1990, shall be paid into
575	575	21 the Local Government Tax Fund for distribution before July 1,
576	576	22 1990, as provided by this Section prior to the enactment of
577	577	23 Public Act 85-1135; and on and after July 1, 1990, all such
578	578	24 receipts shall be distributed as provided in Section 6z-18 of
579	579	25 the State Finance Act.
580	580	26 As used in this Section, "municipal" and "municipality"
581	581
582	582
583	583
584	584
585	585
586	586	HB4018 - 15 - LRB103 31206 AWJ 58106 b
587	587
588	588
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590	590	HB4018 - 16 - LRB103 31206 AWJ 58106 b
591	591	1 means a city, village or incorporated town, including an
592	592	2 incorporated town that has superseded a civil township.
593	593	3 This Section shall be known and may be cited as the Home
594	594	4 Rule Municipal Retailers' Occupation Tax Act.
595	595	5 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
596	596	6 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
597	597	7 (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
598	598	8 Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
599	599	9 Occupation Tax Act. The corporate authorities of a non-home
600	600	10 rule municipality may impose a tax upon all persons engaged in
601	601	11 the business of selling tangible personal property, other than
602	602	12 on an item of tangible personal property which is titled and
603	603	13 registered by an agency of this State's Government, at retail
604	604	14 in the municipality for expenditure on public infrastructure
605	605	15 or for property tax relief or both as defined in Section
606	606	16 8-11-1.2 if approved by referendum as provided in Section
607	607	17 8-11-1.1, of the gross receipts from such sales made in the
608	608	18 course of such business. If the tax is approved by referendum
609	609	19 on or after July 14, 2010 (the effective date of Public Act
610	610	20 96-1057), the corporate authorities of a non-home rule
611	611	21 municipality may, until July 1, 2030, use the proceeds of the
612	612	22 tax for expenditure on municipal operations, in addition to or
613	613	23 in lieu of any expenditure on public infrastructure or for
614	614	24 property tax relief. The tax imposed may not be more than 1%
615	615	25 and may be imposed only in 1/4% increments. The tax may not be
616	616
617	617
618	618
619	619
620	620
621	621	HB4018 - 16 - LRB103 31206 AWJ 58106 b
622	622
623	623
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625	625	HB4018 - 17 - LRB103 31206 AWJ 58106 b
626	626	1 imposed on tangible personal property taxed at the 1% rate
627	627	2 under the Retailers' Occupation Tax Act (or at the 0% rate
628	628	3 imposed under this amendatory Act of the 102nd General
629	629	4 Assembly). Beginning December 1, 2019, this tax is not imposed
630	630	5 on sales of aviation fuel unless the tax revenue is expended
631	631	6 for airport-related purposes. If a municipality does not have
632	632	7 an airport-related purpose to which it dedicates aviation fuel
633	633	8 tax revenue, then aviation fuel is excluded from the tax. Each
634	634	9 municipality must comply with the certification requirements
635	635	10 for airport-related purposes under Section 2-22 of the
636	636	11 Retailers' Occupation Tax Act. For purposes of this Section,
637	637	12 "airport-related purposes" has the meaning ascribed in Section
638	638	13 6z-20.2 of the State Finance Act. This exclusion for aviation
639	639	14 fuel only applies for so long as the revenue use requirements
640	640	15 of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
641	641	16 municipality. The tax imposed by a municipality pursuant to
642	642	17 this Section and all civil penalties that may be assessed as an
643	643	18 incident thereof shall be collected and enforced by the State
644	644	19 Department of Revenue. The certificate of registration which
645	645	20 is issued by the Department to a retailer under the Retailers'
646	646	21 Occupation Tax Act shall permit such retailer to engage in a
647	647	22 business which is taxable under any ordinance or resolution
648	648	23 enacted pursuant to this Section without registering
649	649	24 separately with the Department under such ordinance or
650	650	25 resolution or under this Section. The Department shall have
651	651	26 full power to administer and enforce this Section; to collect
652	652
653	653
654	654
655	655
656	656
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658	658
659	659
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661	661	HB4018 - 18 - LRB103 31206 AWJ 58106 b
662	662	1 all taxes and penalties due hereunder; to dispose of taxes and
663	663	2 penalties so collected in the manner hereinafter provided, and
664	664	3 to determine all rights to credit memoranda, arising on
665	665	4 account of the erroneous payment of tax or penalty hereunder.
666	666	5 In the administration of, and compliance with, this Section,
667	667	6 the Department and persons who are subject to this Section
668	668	7 shall have the same rights, remedies, privileges, immunities,
669	669	8 powers and duties, and be subject to the same conditions,
670	670	9 restrictions, limitations, penalties and definitions of terms,
671	671	10 and employ the same modes of procedure, as are prescribed in
672	672	11 Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in
673	673	12 respect to all provisions therein other than the State rate of
674	674	13 tax), 2c, 3 (except as to the disposition of taxes and
675	675	14 penalties collected, and except that the retailer's discount
676	676	15 is not allowed for taxes paid on aviation fuel that are subject
677	677	16 to the revenue use requirements of 49 U.S.C. 47107(b) and 49
678	678	17 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
679	679	18 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
680	680	19 Retailers' Occupation Tax Act and Section 3-7 of the Uniform
681	681	20 Penalty and Interest Act as fully as if those provisions were
682	682	21 set forth herein.
683	683	22 No municipality may impose a tax under this Section unless
684	684	23 the municipality also imposes a tax at the same rate under
685	685	24 Section 8-11-1.4 of this Code.
686	686	25 Persons subject to any tax imposed pursuant to the
687	687	26 authority granted in this Section may reimburse themselves for
688	688
689	689
690	690
691	691
692	692
693	693	HB4018 - 18 - LRB103 31206 AWJ 58106 b
694	694
695	695
696	696	HB4018- 19 -LRB103 31206 AWJ 58106 b HB4018 - 19 - LRB103 31206 AWJ 58106 b
697	697	HB4018 - 19 - LRB103 31206 AWJ 58106 b
698	698	1 their seller's tax liability hereunder by separately stating
699	699	2 such tax as an additional charge, which charge may be stated in
700	700	3 combination, in a single amount, with State tax which sellers
701	701	4 are required to collect under the Use Tax Act, pursuant to such
702	702	5 bracket schedules as the Department may prescribe.
703	703	6 Whenever the Department determines that a refund should be
704	704	7 made under this Section to a claimant instead of issuing a
705	705	8 credit memorandum, the Department shall notify the State
706	706	9 Comptroller, who shall cause the order to be drawn for the
707	707	10 amount specified, and to the person named, in such
708	708	11 notification from the Department. Such refund shall be paid by
709	709	12 the State Treasurer out of the non-home rule municipal
710	710	13 retailers' occupation tax fund or the Local Government
711	711	14 Aviation Trust Fund, as appropriate.
712	712	15 Except as otherwise provided, the Department shall
713	713	16 forthwith pay over to the State Treasurer, ex officio, as
714	714	17 trustee, all taxes and penalties collected hereunder for
715	715	18 deposit into the Non-Home Rule Municipal Retailers' Occupation
716	716	19 Tax Fund. Taxes and penalties collected on aviation fuel sold
717	717	20 on or after December 1, 2019, shall be immediately paid over by
718	718	21 the Department to the State Treasurer, ex officio, as trustee,
719	719	22 for deposit into the Local Government Aviation Trust Fund. The
720	720	23 Department shall only pay moneys into the Local Government
721	721	24 Aviation Trust Fund under this Section for so long as the
722	722	25 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
723	723	26 47133 are binding on the municipality.
724	724
725	725
726	726
727	727
728	728
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730	730
731	731
732	732	HB4018- 20 -LRB103 31206 AWJ 58106 b HB4018 - 20 - LRB103 31206 AWJ 58106 b
733	733	HB4018 - 20 - LRB103 31206 AWJ 58106 b
734	734	1 As soon as possible after the first day of each month,
735	735	2 beginning January 1, 2011, upon certification of the
736	736	3 Department of Revenue, the Comptroller shall order
737	737	4 transferred, and the Treasurer shall transfer, to the STAR
738	738	5 Bonds Revenue Fund the local sales tax increment, as defined
739	739	6 in the Innovation Development and Economy Act, collected under
740	740	7 this Section during the second preceding calendar month for
741	741	8 sales within a STAR bond district.
742	742	9 After the monthly transfer to the STAR Bonds Revenue Fund,
743	743	10 on or before the 25th day of each calendar month, the
744	744	11 Department shall prepare and certify to the Comptroller the
745	745	12 disbursement of stated sums of money to named municipalities,
746	746	13 the municipalities to be those from which retailers have paid
747	747	14 taxes or penalties hereunder to the Department during the
748	748	15 second preceding calendar month. The amount to be paid to each
749	749	16 municipality shall be the amount (not including credit
750	750	17 memoranda and not including taxes and penalties collected on
751	751	18 aviation fuel sold on or after December 1, 2019) collected
752	752	19 hereunder during the second preceding calendar month by the
753	753	20 Department plus an amount the Department determines is
754	754	21 necessary to offset any amounts which were erroneously paid to
755	755	22 a different taxing body, and not including an amount equal to
756	756	23 the amount of refunds made during the second preceding
757	757	24 calendar month by the Department on behalf of such
758	758	25 municipality, and not including any amount which the
759	759	26 Department determines is necessary to offset any amounts which
760	760
761	761
762	762
763	763
764	764
765	765	HB4018 - 20 - LRB103 31206 AWJ 58106 b
766	766
767	767
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769	769	HB4018 - 21 - LRB103 31206 AWJ 58106 b
770	770	1 were payable to a different taxing body but were erroneously
771	771	2 paid to the municipality, and not including any amounts that
772	772	3 are transferred to the STAR Bonds Revenue Fund, less 1.5% of
773	773	4 the remainder, which the Department shall transfer into the
774	774	5 Tax Compliance and Administration Fund. The Department, at the
775	775	6 time of each monthly disbursement to the municipalities, shall
776	776	7 prepare and certify to the State Comptroller the amount to be
777	777	8 transferred into the Tax Compliance and Administration Fund
778	778	9 under this Section. Within 10 days after receipt, by the
779	779	10 Comptroller, of the disbursement certification to the
780	780	11 municipalities and the Tax Compliance and Administration Fund
781	781	12 provided for in this Section to be given to the Comptroller by
782	782	13 the Department, the Comptroller shall cause the orders to be
783	783	14 drawn for the respective amounts in accordance with the
784	784	15 directions contained in such certification.
785	785	16 For the purpose of determining the local governmental unit
786	786	17 whose tax is applicable, a retail sale, by a producer of coal
787	787	18 or other mineral mined in Illinois, is a sale at retail at the
788	788	19 place where the coal or other mineral mined in Illinois is
789	789	20 extracted from the earth. This paragraph does not apply to
790	790	21 coal or other mineral when it is delivered or shipped by the
791	791	22 seller to the purchaser at a point outside Illinois so that the
792	792	23 sale is exempt under the Federal Constitution as a sale in
793	793	24 interstate or foreign commerce.
794	794	25 Nothing in this Section shall be construed to authorize a
795	795	26 municipality to impose a tax upon the privilege of engaging in
796	796
797	797
798	798
799	799
800	800
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802	802
803	803
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805	805	HB4018 - 22 - LRB103 31206 AWJ 58106 b
806	806	1 any business which under the constitution of the United States
807	807	2 may not be made the subject of taxation by this State.
808	808	3 When certifying the amount of a monthly disbursement to a
809	809	4 municipality under this Section, the Department shall increase
810	810	5 or decrease such amount by an amount necessary to offset any
811	811	6 misallocation of previous disbursements. The offset amount
812	812	7 shall be the amount erroneously disbursed within the previous
813	813	8 6 months from the time a misallocation is discovered. The
814	814	9 offset under this paragraph is not the exclusive remedy a
815	815	10 municipality has for misallocation of previous disbursements.
816	816	11 This paragraph does not limit the rights of a municipality to
817	817	12 pursue an action under Section 8-11-24 of the Illinois
818	818	13 Municipal Code.
819	819	14 The Department of Revenue shall implement Public Act
820	820	15 91-649 so as to collect the tax on and after January 1, 2002.
821	821	16 As used in this Section, "municipal" and "municipality"
822	822	17 mean a city, village, or incorporated town, including an
823	823	18 incorporated town which has superseded a civil township.
824	824	19 This Section shall be known and may be cited as the
825	825	20 Non-Home Rule Municipal Retailers' Occupation Tax Act.
826	826	21 (Source: P.A. 101-10, eff. 6-5-19; 101-47, eff. 1-1-20;
827	827	22 101-81, eff. 7-12-19; 101-604, eff. 12-13-19; 102-700, eff.
828	828	23 4-19-22.)
829	829	24 (65 ILCS 5/8-11-1.6)
830	830	25 Sec. 8-11-1.6. Non-home rule municipal retailers'
831	831
832	832
833	833
834	834
835	835
836	836	HB4018 - 22 - LRB103 31206 AWJ 58106 b
837	837
838	838
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840	840	HB4018 - 23 - LRB103 31206 AWJ 58106 b
841	841	1 occupation tax; municipalities between 20,000 and 25,000. The
842	842	2 corporate authorities of a non-home rule municipality with a
843	843	3 population of more than 20,000 but less than 25,000 that has,
844	844	4 prior to January 1, 1987, established a Redevelopment Project
845	845	5 Area that has been certified as a State Sales Tax Boundary and
846	846	6 has issued bonds or otherwise incurred indebtedness to pay for
847	847	7 costs in excess of $5,000,000, which is secured in part by a
848	848	8 tax increment allocation fund, in accordance with the
849	849	9 provisions of Division 11-74.4 of this Code may, by passage of
850	850	10 an ordinance, impose a tax upon all persons engaged in the
851	851	11 business of selling tangible personal property, other than on
852	852	12 an item of tangible personal property that is titled and
853	853	13 registered by an agency of this State's Government, at retail
854	854	14 in the municipality. This tax may not be imposed on tangible
855	855	15 personal property taxed at the 1% rate under the Retailers'
856	856	16 Occupation Tax Act (or at the 0% rate imposed under this
857	857	17 amendatory Act of the 102nd General Assembly). Beginning
858	858	18 December 1, 2019, this tax is not imposed on sales of aviation
859	859	19 fuel unless the tax revenue is expended for airport-related
860	860	20 purposes. If a municipality does not have an airport-related
861	861	21 purpose to which it dedicates aviation fuel tax revenue, then
862	862	22 aviation fuel is excluded from the tax. Each municipality must
863	863	23 comply with the certification requirements for airport-related
864	864	24 purposes under Section 2-22 of the Retailers' Occupation Tax
865	865	25 Act. For purposes of this Section, "airport-related purposes"
866	866	26 has the meaning ascribed in Section 6z-20.2 of the State
867	867
868	868
869	869
870	870
871	871
872	872	HB4018 - 23 - LRB103 31206 AWJ 58106 b
873	873
874	874
875	875	HB4018- 24 -LRB103 31206 AWJ 58106 b HB4018 - 24 - LRB103 31206 AWJ 58106 b
876	876	HB4018 - 24 - LRB103 31206 AWJ 58106 b
877	877	1 Finance Act. This exclusion for aviation fuel only applies for
878	878	2 so long as the revenue use requirements of 49 U.S.C. 47107(b)
879	879	3 and 49 U.S.C. 47133 are binding on the municipality. If
880	880	4 imposed, the tax shall only be imposed in .25% increments of
881	881	5 the gross receipts from such sales made in the course of
882	882	6 business. Any tax imposed by a municipality under this Section
883	883	7 and all civil penalties that may be assessed as an incident
884	884	8 thereof shall be collected and enforced by the State
885	885	9 Department of Revenue. An ordinance imposing a tax hereunder
886	886	10 or effecting a change in the rate thereof shall be adopted and
887	887	11 a certified copy thereof filed with the Department on or
888	888	12 before the first day of October, whereupon the Department
889	889	13 shall proceed to administer and enforce this Section as of the
890	890	14 first day of January next following such adoption and filing.
891	891	15 The certificate of registration that is issued by the
892	892	16 Department to a retailer under the Retailers' Occupation Tax
893	893	17 Act shall permit the retailer to engage in a business that is
894	894	18 taxable under any ordinance or resolution enacted under this
895	895	19 Section without registering separately with the Department
896	896	20 under the ordinance or resolution or under this Section. The
897	897	21 Department shall have full power to administer and enforce
898	898	22 this Section, to collect all taxes and penalties due
899	899	23 hereunder, to dispose of taxes and penalties so collected in
900	900	24 the manner hereinafter provided, and to determine all rights
901	901	25 to credit memoranda, arising on account of the erroneous
902	902	26 payment of tax or penalty hereunder. In the administration of,
903	903
904	904
905	905
906	906
907	907
908	908	HB4018 - 24 - LRB103 31206 AWJ 58106 b
909	909
910	910
911	911	HB4018- 25 -LRB103 31206 AWJ 58106 b HB4018 - 25 - LRB103 31206 AWJ 58106 b
912	912	HB4018 - 25 - LRB103 31206 AWJ 58106 b
913	913	1 and compliance with this Section, the Department and persons
914	914	2 who are subject to this Section shall have the same rights,
915	915	3 remedies, privileges, immunities, powers, and duties, and be
916	916	4 subject to the same conditions, restrictions, limitations,
917	917	5 penalties, and definitions of terms, and employ the same modes
918	918	6 of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
919	919	7 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
920	920	8 therein other than the State rate of tax), 2c, 3 (except as to
921	921	9 the disposition of taxes and penalties collected, and except
922	922	10 that the retailer's discount is not allowed for taxes paid on
923	923	11 aviation fuel that are subject to the revenue use requirements
924	924	12 of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
925	925	13 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
926	926	14 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
927	927	15 Section 3-7 of the Uniform Penalty and Interest Act as fully as
928	928	16 if those provisions were set forth herein.
929	929	17 A tax may not be imposed by a municipality under this
930	930	18 Section unless the municipality also imposes a tax at the same
931	931	19 rate under Section 8-11-1.7 of this Act.
932	932	20 Persons subject to any tax imposed under the authority
933	933	21 granted in this Section may reimburse themselves for their
934	934	22 seller's tax liability hereunder by separately stating the tax
935	935	23 as an additional charge, which charge may be stated in
936	936	24 combination, in a single amount, with State tax which sellers
937	937	25 are required to collect under the Use Tax Act, pursuant to such
938	938	26 bracket schedules as the Department may prescribe.
939	939
940	940
941	941
942	942
943	943
944	944	HB4018 - 25 - LRB103 31206 AWJ 58106 b
945	945
946	946
947	947	HB4018- 26 -LRB103 31206 AWJ 58106 b HB4018 - 26 - LRB103 31206 AWJ 58106 b
948	948	HB4018 - 26 - LRB103 31206 AWJ 58106 b
949	949	1 Whenever the Department determines that a refund should be
950	950	2 made under this Section to a claimant, instead of issuing a
951	951	3 credit memorandum, the Department shall notify the State
952	952	4 Comptroller, who shall cause the order to be drawn for the
953	953	5 amount specified, and to the person named in the notification
954	954	6 from the Department. The refund shall be paid by the State
955	955	7 Treasurer out of the Non-Home Rule Municipal Retailers'
956	956	8 Occupation Tax Fund, which is hereby created or the Local
957	957	9 Government Aviation Trust Fund, as appropriate.
958	958	10 Except as otherwise provided in this paragraph, the
959	959	11 Department shall forthwith pay over to the State Treasurer, ex
960	960	12 officio, as trustee, all taxes and penalties collected
961	961	13 hereunder for deposit into the Non-Home Rule Municipal
962	962	14 Retailers' Occupation Tax Fund. Taxes and penalties collected
963	963	15 on aviation fuel sold on or after December 1, 2019, shall be
964	964	16 immediately paid over by the Department to the State
965	965	17 Treasurer, ex officio, as trustee, for deposit into the Local
966	966	18 Government Aviation Trust Fund. The Department shall only pay
967	967	19 moneys into the Local Government Aviation Trust Fund under
968	968	20 this Section for so long as the revenue use requirements of 49
969	969	21 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
970	970	22 municipality.
971	971	23 As soon as possible after the first day of each month,
972	972	24 beginning January 1, 2011, upon certification of the
973	973	25 Department of Revenue, the Comptroller shall order
974	974	26 transferred, and the Treasurer shall transfer, to the STAR
975	975
976	976
977	977
978	978
979	979
980	980	HB4018 - 26 - LRB103 31206 AWJ 58106 b
981	981
982	982
983	983	HB4018- 27 -LRB103 31206 AWJ 58106 b HB4018 - 27 - LRB103 31206 AWJ 58106 b
984	984	HB4018 - 27 - LRB103 31206 AWJ 58106 b
985	985	1 Bonds Revenue Fund the local sales tax increment, as defined
986	986	2 in the Innovation Development and Economy Act, collected under
987	987	3 this Section during the second preceding calendar month for
988	988	4 sales within a STAR bond district.
989	989	5 After the monthly transfer to the STAR Bonds Revenue Fund,
990	990	6 on or before the 25th day of each calendar month, the
991	991	7 Department shall prepare and certify to the Comptroller the
992	992	8 disbursement of stated sums of money to named municipalities,
993	993	9 the municipalities to be those from which retailers have paid
994	994	10 taxes or penalties hereunder to the Department during the
995	995	11 second preceding calendar month. The amount to be paid to each
996	996	12 municipality shall be the amount (not including credit
997	997	13 memoranda and not including taxes and penalties collected on
998	998	14 aviation fuel sold on or after December 1, 2019) collected
999	999	15 hereunder during the second preceding calendar month by the
1000	1000	16 Department plus an amount the Department determines is
1001	1001	17 necessary to offset any amounts that were erroneously paid to
1002	1002	18 a different taxing body, and not including an amount equal to
1003	1003	19 the amount of refunds made during the second preceding
1004	1004	20 calendar month by the Department on behalf of the
1005	1005	21 municipality, and not including any amount that the Department
1006	1006	22 determines is necessary to offset any amounts that were
1007	1007	23 payable to a different taxing body but were erroneously paid
1008	1008	24 to the municipality, and not including any amounts that are
1009	1009	25 transferred to the STAR Bonds Revenue Fund, less 1.5% of the
1010	1010	26 remainder, which the Department shall transfer into the Tax
1011	1011
1012	1012
1013	1013
1014	1014
1015	1015
1016	1016	HB4018 - 27 - LRB103 31206 AWJ 58106 b
1017	1017
1018	1018
1019	1019	HB4018- 28 -LRB103 31206 AWJ 58106 b HB4018 - 28 - LRB103 31206 AWJ 58106 b
1020	1020	HB4018 - 28 - LRB103 31206 AWJ 58106 b
1021	1021	1 Compliance and Administration Fund. The Department, at the
1022	1022	2 time of each monthly disbursement to the municipalities, shall
1023	1023	3 prepare and certify to the State Comptroller the amount to be
1024	1024	4 transferred into the Tax Compliance and Administration Fund
1025	1025	5 under this Section. Within 10 days after receipt by the
1026	1026	6 Comptroller of the disbursement certification to the
1027	1027	7 municipalities and the Tax Compliance and Administration Fund
1028	1028	8 provided for in this Section to be given to the Comptroller by
1029	1029	9 the Department, the Comptroller shall cause the orders to be
1030	1030	10 drawn for the respective amounts in accordance with the
1031	1031	11 directions contained in the certification.
1032	1032	12 For the purpose of determining the local governmental unit
1033	1033	13 whose tax is applicable, a retail sale by a producer of coal or
1034	1034	14 other mineral mined in Illinois is a sale at retail at the
1035	1035	15 place where the coal or other mineral mined in Illinois is
1036	1036	16 extracted from the earth. This paragraph does not apply to
1037	1037	17 coal or other mineral when it is delivered or shipped by the
1038	1038	18 seller to the purchaser at a point outside Illinois so that the
1039	1039	19 sale is exempt under the federal Constitution as a sale in
1040	1040	20 interstate or foreign commerce.
1041	1041	21 Nothing in this Section shall be construed to authorize a
1042	1042	22 municipality to impose a tax upon the privilege of engaging in
1043	1043	23 any business which under the constitution of the United States
1044	1044	24 may not be made the subject of taxation by this State.
1045	1045	25 When certifying the amount of a monthly disbursement to a
1046	1046	26 municipality under this Section, the Department shall increase
1047	1047
1048	1048
1049	1049
1050	1050
1051	1051
1052	1052	HB4018 - 28 - LRB103 31206 AWJ 58106 b
1053	1053
1054	1054
1055	1055	HB4018- 29 -LRB103 31206 AWJ 58106 b HB4018 - 29 - LRB103 31206 AWJ 58106 b
1056	1056	HB4018 - 29 - LRB103 31206 AWJ 58106 b
1057	1057	1 or decrease the amount by an amount necessary to offset any
1058	1058	2 misallocation of previous disbursements. The offset amount
1059	1059	3 shall be the amount erroneously disbursed within the previous
1060	1060	4 6 months from the time a misallocation is discovered. The
1061	1061	5 offset under this paragraph is not the exclusive remedy a
1062	1062	6 municipality has for misallocation of previous disbursements.
1063	1063	7 This paragraph does not limit the rights of a municipality to
1064	1064	8 pursue an action under Section 8-11-24 of the Illinois
1065	1065	9 Municipal Code.
1066	1066	10 As used in this Section, "municipal" and "municipality"
1067	1067	11 means a city, village, or incorporated town, including an
1068	1068	12 incorporated town that has superseded a civil township.
1069	1069	13 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
1070	1070	14 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
1071	1071	15 (65 ILCS 5/8-11-1.7)
1072	1072	16 Sec. 8-11-1.7. Non-home rule municipal service occupation
1073	1073	17 tax; municipalities between 20,000 and 25,000. The corporate
1074	1074	18 authorities of a non-home rule municipality with a population
1075	1075	19 of more than 20,000 but less than 25,000 as determined by the
1076	1076	20 last preceding decennial census that has, prior to January 1,
1077	1077	21 1987, established a Redevelopment Project Area that has been
1078	1078	22 certified as a State Sales Tax Boundary and has issued bonds or
1079	1079	23 otherwise incurred indebtedness to pay for costs in excess of
1080	1080	24 $5,000,000, which is secured in part by a tax increment
1081	1081	25 allocation fund, in accordance with the provisions of Division
1082	1082
1083	1083
1084	1084
1085	1085
1086	1086
1087	1087	HB4018 - 29 - LRB103 31206 AWJ 58106 b
1088	1088
1089	1089
1090	1090	HB4018- 30 -LRB103 31206 AWJ 58106 b HB4018 - 30 - LRB103 31206 AWJ 58106 b
1091	1091	HB4018 - 30 - LRB103 31206 AWJ 58106 b
1092	1092	1 11-74.4 of this Code may, by passage of an ordinance, impose a
1093	1093	2 tax upon all persons engaged in the municipality in the
1094	1094	3 business of making sales of service. If imposed, the tax shall
1095	1095	4 only be imposed in .25% increments of the selling price of all
1096	1096	5 tangible personal property transferred by such servicemen
1097	1097	6 either in the form of tangible personal property or in the form
1098	1098	7 of real estate as an incident to a sale of service. This tax
1099	1099	8 may not be imposed on tangible personal property taxed at the
1100	1100	9 1% rate under the Service Occupation Tax Act (or at the 0% rate
1101	1101	10 imposed under this amendatory Act of the 102nd General
1102	1102	11 Assembly). Beginning December 1, 2019, this tax is not imposed
1103	1103	12 on sales of aviation fuel unless the tax revenue is expended
1104	1104	13 for airport-related purposes. If a municipality does not have
1105	1105	14 an airport-related purpose to which it dedicates aviation fuel
1106	1106	15 tax revenue, then aviation fuel is excluded from the tax. Each
1107	1107	16 municipality must comply with the certification requirements
1108	1108	17 for airport-related purposes under Section 2-22 of the
1109	1109	18 Retailers' Occupation Tax Act. For purposes of this Section,
1110	1110	19 "airport-related purposes" has the meaning ascribed in Section
1111	1111	20 6z-20.2 of the State Finance Act. This exclusion for aviation
1112	1112	21 fuel only applies for so long as the revenue use requirements
1113	1113	22 of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
1114	1114	23 municipality. The tax imposed by a municipality under this
1115	1115	24 Section and all civil penalties that may be assessed as an
1116	1116	25 incident thereof shall be collected and enforced by the State
1117	1117	26 Department of Revenue. An ordinance imposing a tax hereunder
1118	1118
1119	1119
1120	1120
1121	1121
1122	1122
1123	1123	HB4018 - 30 - LRB103 31206 AWJ 58106 b
1124	1124
1125	1125
1126	1126	HB4018- 31 -LRB103 31206 AWJ 58106 b HB4018 - 31 - LRB103 31206 AWJ 58106 b
1127	1127	HB4018 - 31 - LRB103 31206 AWJ 58106 b
1128	1128	1 or effecting a change in the rate thereof shall be adopted and
1129	1129	2 a certified copy thereof filed with the Department on or
1130	1130	3 before the first day of October, whereupon the Department
1131	1131	4 shall proceed to administer and enforce this Section as of the
1132	1132	5 first day of January next following such adoption and filing.
1133	1133	6 The certificate of registration that is issued by the
1134	1134	7 Department to a retailer under the Retailers' Occupation Tax
1135	1135	8 Act or under the Service Occupation Tax Act shall permit the
1136	1136	9 registrant to engage in a business that is taxable under any
1137	1137	10 ordinance or resolution enacted under this Section without
1138	1138	11 registering separately with the Department under the ordinance
1139	1139	12 or resolution or under this Section. The Department shall have
1140	1140	13 full power to administer and enforce this Section, to collect
1141	1141	14 all taxes and penalties due hereunder, to dispose of taxes and
1142	1142	15 penalties so collected in a manner hereinafter provided, and
1143	1143	16 to determine all rights to credit memoranda arising on account
1144	1144	17 of the erroneous payment of tax or penalty hereunder. In the
1145	1145	18 administration of and compliance with this Section, the
1146	1146	19 Department and persons who are subject to this Section shall
1147	1147	20 have the same rights, remedies, privileges, immunities,
1148	1148	21 powers, and duties, and be subject to the same conditions,
1149	1149	22 restrictions, limitations, penalties and definitions of terms,
1150	1150	23 and employ the same modes of procedure, as are prescribed in
1151	1151	24 Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
1152	1152	25 provisions therein other than the State rate of tax), 4
1153	1153	26 (except that the reference to the State shall be to the taxing
1154	1154
1155	1155
1156	1156
1157	1157
1158	1158
1159	1159	HB4018 - 31 - LRB103 31206 AWJ 58106 b
1160	1160
1161	1161
1162	1162	HB4018- 32 -LRB103 31206 AWJ 58106 b HB4018 - 32 - LRB103 31206 AWJ 58106 b
1163	1163	HB4018 - 32 - LRB103 31206 AWJ 58106 b
1164	1164	1 municipality), 5, 7, 8 (except that the jurisdiction to which
1165	1165	2 the tax shall be a debt to the extent indicated in that Section
1166	1166	3 8 shall be the taxing municipality), 9 (except as to the
1167	1167	4 disposition of taxes and penalties collected, and except that
1168	1168	5 the returned merchandise credit for this municipal tax may not
1169	1169	6 be taken against any State tax, and except that the retailer's
1170	1170	7 discount is not allowed for taxes paid on aviation fuel that
1171	1171	8 are subject to the revenue use requirements of 49 U.S.C.
1172	1172	9 47107(b) and 49 U.S.C. 47133), 10, 11, 12, (except the
1173	1173	10 reference therein to Section 2b of the Retailers' Occupation
1174	1174	11 Tax Act), 13 (except that any reference to the State shall mean
1175	1175	12 the taxing municipality), the first paragraph of Sections 15,
1176	1176	13 16, 17, 18, 19, and 20 of the Service Occupation Tax Act and
1177	1177	14 Section 3-7 of the Uniform Penalty and Interest Act, as fully
1178	1178	15 as if those provisions were set forth herein.
1179	1179	16 A tax may not be imposed by a municipality under this
1180	1180	17 Section unless the municipality also imposes a tax at the same
1181	1181	18 rate under Section 8-11-1.6 of this Act.
1182	1182	19 Person subject to any tax imposed under the authority
1183	1183	20 granted in this Section may reimburse themselves for their
1184	1184	21 servicemen's tax liability hereunder by separately stating the
1185	1185	22 tax as an additional charge, which charge may be stated in
1186	1186	23 combination, in a single amount, with State tax that
1187	1187	24 servicemen are authorized to collect under the Service Use Tax
1188	1188	25 Act, under such bracket schedules as the Department may
1189	1189	26 prescribe.
1190	1190
1191	1191
1192	1192
1193	1193
1194	1194
1195	1195	HB4018 - 32 - LRB103 31206 AWJ 58106 b
1196	1196
1197	1197
1198	1198	HB4018- 33 -LRB103 31206 AWJ 58106 b HB4018 - 33 - LRB103 31206 AWJ 58106 b
1199	1199	HB4018 - 33 - LRB103 31206 AWJ 58106 b
1200	1200	1 Whenever the Department determines that a refund should be
1201	1201	2 made under this Section to a claimant instead of issuing
1202	1202	3 credit memorandum, the Department shall notify the State
1203	1203	4 Comptroller, who shall cause the order to be drawn for the
1204	1204	5 amount specified, and to the person named, in such
1205	1205	6 notification from the Department. The refund shall be paid by
1206	1206	7 the State Treasurer out of the Non-Home Rule Municipal
1207	1207	8 Retailers' Occupation Tax Fund or the Local Government
1208	1208	9 Aviation Trust Fund, as appropriate.
1209	1209	10 Except as otherwise provided in this paragraph, the
1210	1210	11 Department shall forthwith pay over to the State Treasurer, ex
1211	1211	12 officio, as trustee, all taxes and penalties collected
1212	1212	13 hereunder for deposit into the Non-Home Rule Municipal
1213	1213	14 Retailers' Occupation Tax Fund. Taxes and penalties collected
1214	1214	15 on aviation fuel sold on or after December 1, 2019, shall be
1215	1215	16 immediately paid over by the Department to the State
1216	1216	17 Treasurer, ex officio, as trustee, for deposit into the Local
1217	1217	18 Government Aviation Trust Fund. The Department shall only pay
1218	1218	19 moneys into the Local Government Aviation Trust Fund under
1219	1219	20 this Section for so long as the revenue use requirements of 49
1220	1220	21 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
1221	1221	22 Municipality.
1222	1222	23 As soon as possible after the first day of each month,
1223	1223	24 beginning January 1, 2011, upon certification of the
1224	1224	25 Department of Revenue, the Comptroller shall order
1225	1225	26 transferred, and the Treasurer shall transfer, to the STAR
1226	1226
1227	1227
1228	1228
1229	1229
1230	1230
1231	1231	HB4018 - 33 - LRB103 31206 AWJ 58106 b
1232	1232
1233	1233
1234	1234	HB4018- 34 -LRB103 31206 AWJ 58106 b HB4018 - 34 - LRB103 31206 AWJ 58106 b
1235	1235	HB4018 - 34 - LRB103 31206 AWJ 58106 b
1236	1236	1 Bonds Revenue Fund the local sales tax increment, as defined
1237	1237	2 in the Innovation Development and Economy Act, collected under
1238	1238	3 this Section during the second preceding calendar month for
1239	1239	4 sales within a STAR bond district.
1240	1240	5 After the monthly transfer to the STAR Bonds Revenue Fund,
1241	1241	6 on or before the 25th day of each calendar month, the
1242	1242	7 Department shall prepare and certify to the Comptroller the
1243	1243	8 disbursement of stated sums of money to named municipalities,
1244	1244	9 the municipalities to be those from which suppliers and
1245	1245	10 servicemen have paid taxes or penalties hereunder to the
1246	1246	11 Department during the second preceding calendar month. The
1247	1247	12 amount to be paid to each municipality shall be the amount (not
1248	1248	13 including credit memoranda and not including taxes and
1249	1249	14 penalties collected on aviation fuel sold on or after December
1250	1250	15 1, 2019) collected hereunder during the second preceding
1251	1251	16 calendar month by the Department, and not including an amount
1252	1252	17 equal to the amount of refunds made during the second
1253	1253	18 preceding calendar month by the Department on behalf of such
1254	1254	19 municipality, and not including any amounts that are
1255	1255	20 transferred to the STAR Bonds Revenue Fund, less 1.5% of the
1256	1256	21 remainder, which the Department shall transfer into the Tax
1257	1257	22 Compliance and Administration Fund. The Department, at the
1258	1258	23 time of each monthly disbursement to the municipalities, shall
1259	1259	24 prepare and certify to the State Comptroller the amount to be
1260	1260	25 transferred into the Tax Compliance and Administration Fund
1261	1261	26 under this Section. Within 10 days after receipt by the
1262	1262
1263	1263
1264	1264
1265	1265
1266	1266
1267	1267	HB4018 - 34 - LRB103 31206 AWJ 58106 b
1268	1268
1269	1269
1270	1270	HB4018- 35 -LRB103 31206 AWJ 58106 b HB4018 - 35 - LRB103 31206 AWJ 58106 b
1271	1271	HB4018 - 35 - LRB103 31206 AWJ 58106 b
1272	1272	1 Comptroller of the disbursement certification to the
1273	1273	2 municipalities, the Tax Compliance and Administration Fund,
1274	1274	3 and the General Revenue Fund, provided for in this Section to
1275	1275	4 be given to the Comptroller by the Department, the Comptroller
1276	1276	5 shall cause the orders to be drawn for the respective amounts
1277	1277	6 in accordance with the directions contained in the
1278	1278	7 certification.
1279	1279	8 When certifying the amount of a monthly disbursement to a
1280	1280	9 municipality under this Section, the Department shall increase
1281	1281	10 or decrease the amount by an amount necessary to offset any
1282	1282	11 misallocation of previous disbursements. The offset amount
1283	1283	12 shall be the amount erroneously disbursed within the previous
1284	1284	13 6 months from the time a misallocation is discovered. The
1285	1285	14 offset under this paragraph is not the exclusive remedy a
1286	1286	15 municipality has for misallocation of previous disbursements.
1287	1287	16 This paragraph does not limit the rights of a municipality to
1288	1288	17 pursue an action under Section 8-11-24 of the Illinois
1289	1289	18 Municipal Code.
1290	1290	19 Nothing in this Section shall be construed to authorize a
1291	1291	20 municipality to impose a tax upon the privilege of engaging in
1292	1292	21 any business which under the constitution of the United States
1293	1293	22 may not be made the subject of taxation by this State.
1294	1294	23 (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
1295	1295	24 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
1296	1296	25 (65 ILCS 5/8-11-16) (from Ch. 24, par. 8-11-16)
1297	1297
1298	1298
1299	1299
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1307	1307	1 Sec. 8-11-16. The Department of Revenue shall submit to
1308	1308	2 each municipality each year a list of those persons within
1309	1309	3 that municipality who are registered with the Department under
1310	1310	4 the Retailers' Occupation Tax Act.
1311	1311	5 The list shall indicate the street address of each retail
1312	1312	6 outlet operated in the municipality by the persons so
1313	1313	7 registered and the name under which the retailer conducts
1314	1314	8 business, if different from the corporate name. The municipal
1315	1315	9 clerk shall forward any changes or corrections to the list to
1316	1316	10 the Department within 6 months. The Department shall update
1317	1317	11 and correct its records to reflect such changes, or notify the
1318	1318	12 municipality in writing that the suggested changes are
1319	1319	13 erroneous, within 90 days. The Department shall also provide
1320	1320	14 monthly updates to each municipality showing additions or
1321	1321	15 deletions to the list of retail outlets within the
1322	1322	16 municipality. The Department shall provide a copy of the
1323	1323	17 annual listing herein provided for contiguous jurisdictions
1324	1324	18 when a municipality so requests. The list required by this
1325	1325	19 Section shall contain only the names and street addresses of
1326	1326	20 persons who are registered with the Department and shall not
1327	1327	21 include the amount of tax paid by such persons. The list
1328	1328	22 required by this Section shall be provided to each
1329	1329	23 municipality no later than September 1 annually.
1330	1330	24 When certifying the amount of a monthly disbursement to a
1331	1331	25 municipality under Section 8-11-1, 8-11-5, 8-11-6 of this Act
1332	1332	26 or Section 6z-18 of "An Act in relation to State finance", the
1333	1333
1334	1334
1335	1335
1336	1336
1337	1337
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1339	1339
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1343	1343	1 Department shall increase or decrease such amount by an amount
1344	1344	2 necessary to offset any misallocation of previous
1345	1345	3 disbursements. The offset amount shall be the amount
1346	1346	4 erroneously disbursed within the previous 6 months from the
1347	1347	5 time a misallocation is discovered. The offset under this
1348	1348	6 paragraph is not the exclusive remedy a municipality has for
1349	1349	7 misallocation of previous disbursements. This paragraph does
1350	1350	8 not limit the rights of a municipality to pursue an action
1351	1351	9 under Section 8-11-24 of the Illinois Municipal Code.
1352	1352	10 The Department of Revenue must upon the request of any
1353	1353	11 municipality received pursuant to the provisions of this
1354	1354	12 paragraph furnish to such municipality data setting forth the
1355	1355	13 aggregate amount of retailers' occupation tax collected on
1356	1356	14 behalf of such municipality from any shopping center
1357	1357	15 identified in such request and located within such
1358	1358	16 municipality for each month beginning with the first month
1359	1359	17 following the month within which such a request is received by
1360	1360	18 the Department, provided that such data may be provided only
1361	1361	19 with respect to shopping centers (1) which consist of 50 or
1362	1362	20 more persons registered with the Department to pay Retailers'
1363	1363	21 Occupation Tax, and (2) where the developers or owners thereof
1364	1364	22 or their predecessors in interest have entered into written
1365	1365	23 agreements with the municipality to transfer property to or
1366	1366	24 perform services for or on behalf of such municipality in
1367	1367	25 exchange for payments based solely or in part on the amount of
1368	1368	26 retailers' occupation tax collected on behalf of the
1369	1369
1370	1370
1371	1371
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1379	1379	1 municipality from persons within such shopping centers. Data
1380	1380	2 given pursuant to this paragraph shall not identify by amounts
1381	1381	3 the individual sources of such taxes. A request for data
1382	1382	4 pursuant to this paragraph shall first be submitted to the
1383	1383	5 Department of Revenue by the Municipal Clerk, City Council or
1384	1384	6 Village Board of Trustees. The Department of Revenue shall
1385	1385	7 review each such request to determine whether the requirements
1386	1386	8 of item (2) of the first sentence of this paragraph have been
1387	1387	9 met and, within 30 days following its receipt of such a
1388	1388	10 request, shall either certify that the request meets such
1389	1389	11 requirements, or notify the person submitting the request that
1390	1390	12 the request does not meet such requirements.
1391	1391	13 As used in this Section, "Municipal" or "Municipality"
1392	1392	14 means or refers to a city, village or incorporated town,
1393	1393	15 including an incorporated town which has superseded a civil
1394	1394	16 township, and "shopping center" means a group of retail stores
1395	1395	17 and other business and service establishments in an integrated
1396	1396	18 building arrangement operated under common ownership or
1397	1397	19 diverse ownership under unified control involving common
1398	1398	20 parking areas and mutual easements.
1399	1399	21 (Source: P.A. 91-51, eff. 6-30-99.)
1400	1400	22 (65 ILCS 5/8-11-21)
1401	1401	23 Sec. 8-11-21. Agreements to share or rebate occupation
1402	1402	24 taxes.
1403	1403	25 (a) On and after June 1, 2004, the corporate authorities
1404	1404
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1414	1414	1 of a municipality shall not enter into any agreement to share
1415	1415	2 or rebate any portion of retailers' occupation taxes generated
1416	1416	3 by retail sales of tangible personal property if: (1) the tax
1417	1417	4 on those retail sales, absent the agreement, would have been
1418	1418	5 paid to another unit of local government; and (2) the retailer
1419	1419	6 maintains, within that other unit of local government, a
1420	1420	7 retail location from which the tangible personal property is
1421	1421	8 delivered to purchasers, or a warehouse from which the
1422	1422	9 tangible personal property is delivered to purchasers. Any
1423	1423	10 unit of local government denied retailers' occupation tax
1424	1424	11 revenue because of an agreement that violates this Section may
1425	1425	12 file an action in circuit court against only the municipality.
1426	1426	13 Any agreement entered into prior to June 1, 2004 is not
1427	1427	14 affected by this amendatory Act of the 93rd General Assembly.
1428	1428	15 Any unit of local government that prevails in the circuit
1429	1429	16 court action is entitled to damages in the amount of the tax
1430	1430	17 revenue it was denied as a result of the agreement, statutory
1431	1431	18 interest, costs, reasonable attorney's fees, and an amount
1432	1432	19 equal to 50% of the tax.
1433	1433	20 This subsection is not the exclusive remedy of the
1434	1434	21 municipality and does not limit the rights of a municipality
1435	1435	22 to pursue an action under Section 8-11-24 of the Illinois
1436	1436	23 Municipal Code.
1437	1437	24 (b) On and after the effective date of this amendatory Act
1438	1438	25 of the 93rd General Assembly, a home rule unit shall not enter
1439	1439	26 into any agreement prohibited by this Section. This Section is
1440	1440
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1450	1450	1 a denial and limitation of home rule powers and functions
1451	1451	2 under subsection (g) of Section 6 of Article VII of the
1452	1452	3 Illinois Constitution.
1453	1453	4 (c) Any municipality that enters into an agreement to
1454	1454	5 share or rebate any portion of retailers' occupation taxes
1455	1455	6 generated by retail sales of tangible personal property must
1456	1456	7 complete and submit a report by electronic filing to the
1457	1457	8 Department of Revenue within 30 days after the execution of
1458	1458	9 the agreement. Any municipality that has entered into such an
1459	1459	10 agreement before the effective date of this amendatory Act of
1460	1460	11 the 97th General Assembly that has not been terminated or
1461	1461	12 expired as of the effective date of this amendatory Act of the
1462	1462	13 97th General Assembly shall submit a report with respect to
1463	1463	14 the agreements within 90 days after the effective date of this
1464	1464	15 amendatory Act of the 97th General Assembly.
1465	1465	16 Any agreement entered into on or after the effective date
1466	1466	17 of this amendatory Act of the 98th General Assembly is not
1467	1467	18 valid until the municipality entering into the agreement
1468	1468	19 complies with the requirements set forth in this subsection.
1469	1469	20 Any municipality that fails to comply with the requirements
1470	1470	21 set forth in this subsection within the 30 days after the
1471	1471	22 execution of the agreement shall be responsible for paying to
1472	1472	23 the Department of Revenue a delinquency penalty of $20 per day
1473	1473	24 for each day the municipality fails to submit a report by
1474	1474	25 electronic filing to the Department of Revenue. A municipality
1475	1475	26 that has previously failed to report an agreement in effect on
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1486	1486	1 the effective date of this subsection will begin to accrue a
1487	1487	2 delinquency penalty for each day the agreement remains
1488	1488	3 unreported beginning on the effective date of this subsection.
1489	1489	4 The Department of Revenue may adopt rules to implement and
1490	1490	5 administer these penalties.
1491	1491	6 (d) The report described in this Section shall be made on a
1492	1492	7 form to be supplied by the Department of Revenue and shall
1493	1493	8 contain the following:
1494	1494	9 (1) the names of the municipality and the business
1495	1495	10 entering into the agreement;
1496	1496	11 (2) the location or locations of the business within
1497	1497	12 the municipality;
1498	1498	13 (3) a statement, to be answered in the affirmative or
1499	1499	14 negative, as to whether or not the company maintains
1500	1500	15 additional places of business in the State other than
1501	1501	16 those described pursuant to paragraph (2);
1502	1502	17 (4) the terms of the agreement, including (i) the
1503	1503	18 manner in which the amount of any retailers' occupation
1504	1504	19 tax to be shared, rebated, or refunded is to be determined
1505	1505	20 each year for the duration of the agreement, (ii) the
1506	1506	21 duration of the agreement, and (iii) the name of any
1507	1507	22 business who is not a party to the agreement but who
1508	1508	23 directly or indirectly receives a share, refund, or rebate
1509	1509	24 of the retailers' occupation tax; and
1510	1510	25 (5) a copy of the agreement to share or rebate any
1511	1511	26 portion of retailers' occupation taxes generated by retail
1512	1512
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1522	1522	1 sales of tangible personal property.
1523	1523	2 An updated report must be filed by the municipality within
1524	1524	3 30 days after the execution of any amendment made to an
1525	1525	4 agreement.
1526	1526	5 Reports filed with the Department pursuant to this Section
1527	1527	6 shall not constitute tax returns.
1528	1528	7 (e) The Department and the municipality shall redact the
1529	1529	8 sales figures, the amount of sales tax collected, and the
1530	1530	9 amount of sales tax rebated prior to disclosure of information
1531	1531	10 contained in a report required by this Section or the Freedom
1532	1532	11 of Information Act. The information redacted shall be exempt
1533	1533	12 from the provisions of the Freedom of Information Act.
1534	1534	13 (f) All reports, except the copy of the agreement,
1535	1535	14 required to be filed with the Department of Revenue pursuant
1536	1536	15 to this Section shall be posted on the Department's website
1537	1537	16 within 6 months after the effective date of this amendatory
1538	1538	17 Act of the 97th General Assembly. The website shall be updated
1539	1539	18 on a monthly basis to include newly received reports.
1540	1540	19 (Source: P.A. 97-976, eff. 1-1-13; 98-463, eff. 8-16-13;
1541	1541	20 98-1098, eff. 8-26-14.)
1542	1542	21 (65 ILCS 5/8-11-24 new)
1543	1543	22 Sec. 8-11-24. Recovery of sales tax revenues.
1544	1544	23 (a) A municipality may commence an action in the circuit
1545	1545	24 court against another municipality to recover sales tax
1546	1546	25 revenues generated by a business in the plaintiff municipality
1547	1547
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1557	1557	1 but mistakenly paid to the defendant municipality. The action
1558	1558	2 must be commenced no later than 20 years after a payment is
1559	1559	3 mistakenly paid to a municipality.
1560	1560	4 (b) In an action under this Section, a municipality may
1561	1561	5 recover both the municipality's share of the moneys
1562	1562	6 distributed under Section 6z-18 of the State Finance Act and
1563	1563	7 the municipality's own local sales taxes that were mistakenly
1564	1564	8 paid to another municipality.
1565	1565	9 (c) The changes made by this amendatory Act of the 103rd
1566	1566	10 General Assembly, including this Section, are declarative of
1567	1567	11 existing law and shall be applied retroactively when
1568	1568	12 substantively applicable, including all pending and previously
1569	1569	13 pending actions without regard to when the cause of action
1570	1570	14 accrued.
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