Bill Text: IL HB1240 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Home Rule Municipal Use Tax Act in the Illinois Municipal Code. Makes a technical change in a Section authorizing the imposition of the tax.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2019-01-08 - Session Sine Die [HB1240 Detail]

Download: Illinois-2017-HB1240-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 HB1240 Introduced , by Rep. Michael J. Madigan SYNOPSIS AS INTRODUCED:
65 ILCS 5/8-11-6 from Ch. 24, par. 8-11-6
Amends the Home Rule Municipal Use Tax Act in the Illinois Municipal Code. Makes a technical change in a Section authorizing the imposition of the tax.
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A BILL FOR
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AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Municipal Code is amended by
changing Section 8-11-6 as follows:
(65 ILCS 5/8-11-6) (from Ch. 24, par. 8-11-6)
Sec. 8-11-6. Home Rule Municipal Use Tax Act.
(a) The The corporate authorities of a 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 at a location within the corporate limits of such
home rule municipality with an agency of this State's
government, at a rate which is an increment of 1/4% and based
on the selling price of such tangible personal property, as
"selling price" is defined in the Use Tax Act. In home rule
municipalities with less than 2,000,000 inhabitants, the tax
shall be collected by the municipality imposing the tax from
persons whose Illinois address for titling or registration
purposes is given as being in such municipality.
(b) In home rule municipalities with 2,000,000 or more
inhabitants, the corporate authorities of the municipality may
additionally impose a tax beginning July 1, 1991 upon the

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privilege of using in the municipality, any item of tangible
personal property, other than tangible personal property
titled or registered with an agency of the State's government,
that is purchased at retail from a retailer located outside the
corporate limits of the municipality, at a rate that is an
increment of 1/4% not to exceed 1% and based on the selling
price of the tangible personal property, as "selling price" is
defined in the Use Tax Act. Such tax shall be collected from
the purchaser either by the municipality imposing such tax or
by the Department of Revenue pursuant to an agreement between
the Department and the municipality.
To prevent multiple home rule taxation, the use in a home
rule municipality of tangible personal property that is
acquired outside the municipality and caused to be brought into
the municipality by a person who has already paid a home rule
municipal tax in another municipality in respect to the sale,
purchase, or use of that property, shall be exempt to the
extent of the amount of the tax properly due and paid in the
other home rule municipality.
(c) If a municipality having 2,000,000 or more inhabitants
imposes the tax authorized by subsection (a), then the tax
shall be collected by the Illinois Department of Revenue when
the property is purchased at retail from a retailer in the
county in which the home rule municipality imposing the tax is
located, and in all contiguous counties. The tax shall be
remitted to the State, or an exemption determination must be

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obtained from the Department before the title or certificate of
registration for the property may be issued. The tax or proof
of exemption may be transmitted to the Department by way of the
State agency with which, or State officer with whom, the
tangible personal property must be titled or registered if the
Department and that agency or State officer determine that this
procedure will expedite the processing of applications for
title or registration.
The Department shall have full power to administer and
enforce this Section to collect all taxes, penalties and
interest due hereunder, to dispose of taxes, penalties and
interest so collected in the manner hereinafter provided, and
determine all rights to credit memoranda or refunds arising on
account of the erroneous payment of tax, penalty or interest
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 2 (except the definition of
"retailer maintaining a place of business in this State"), 3
(except provisions pertaining to the State rate of tax, and
except provisions concerning collection or refunding of the tax
by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22 of the
Use Tax Act, which are not inconsistent with this Section, as

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fully as if provisions contained in those Sections of the Use
Tax Act were set forth herein.
Whenever the Department determines that a refund shall 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 home rule municipal retailers' occupation
tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes, penalties and
interest collected hereunder. On or before the 25th day of each
calendar month, the Department shall prepare and certify to the
State Comptroller the disbursement of stated sums of money to
named municipalities, the municipality in each instance to be
that municipality from which the Department during the second
preceding calendar month, collected municipal use tax from any
person whose Illinois address for titling or registration
purposes is given as being in such municipality. 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, less 2% of the balance, which sum shall be

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retained by the State Treasurer to cover the costs incurred by
the Department in administering and enforcing the provisions of
this Section. The Department, at the time of each monthly
disbursement to the municipalities, shall prepare and certify
to the Comptroller the amount so retained by the State
Treasurer, which shall be transferred into the Tax Compliance
and Administration Fund. Within 10 days after receipt by the
State Comptroller of the disbursement certification to the
municipalities provided for in this Section to be given to the
State Comptroller by the Department, the State Comptroller
shall cause the orders to be drawn for the respective amounts
in accordance with the directions contained in that
certification.
Any ordinance imposing or discontinuing any tax to be
collected and enforced by the Department under this Section
shall be adopted and a certified copy thereof filed with the
Department on or before October 1, whereupon the Department of
Revenue shall proceed to administer and enforce this Section on
behalf of the municipalities as of January 1 next following
such adoption and filing. Beginning April 1, 1998, any
ordinance imposing or discontinuing any tax to be collected and
enforced by the Department under this Section shall either (i)
be adopted and a certified copy thereof filed with the
Department on or before April 1, whereupon the Department of
Revenue shall proceed to administer and enforce this Section on
behalf of the municipalities as of July 1 next following the

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adoption and filing; or (ii) be adopted and a certified copy
thereof filed with the Department on or before October 1,
whereupon the Department of Revenue shall proceed to administer
and enforce this Section on behalf of the municipalities as of
January 1 next following the adoption and filing.
Nothing in this subsection (c) shall prevent a home rule
municipality from collecting the tax pursuant to subsection (a)
in any situation where such tax is not collected by the
Department of Revenue under this subsection (c).
(d) Any unobligated balance remaining in the Municipal
Retailers' Occupation Tax Fund on December 31, 1989, which fund
was abolished by Public Act 85-1135, and all receipts of
municipal tax as a result of audits of liability periods prior
to January 1, 1990, shall be paid into the Local Government Tax
Fund, for distribution as provided by this Section prior to the
enactment of Public Act 85-1135. All receipts of municipal tax
as a result of an assessment not arising from an audit, for
liability periods prior to January 1, 1990, shall be paid into
the Local Government Tax Fund for distribution before July 1,
1990, as provided by this Section prior to the enactment of
Public Act 85-1135, and on and after July 1, 1990, all such
receipts shall be distributed as provided in Section 6z-18 of
the State Finance Act.
(e) 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.

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(f) This Section shall be known and may be cited as the
Home Rule Municipal Use Tax Act.
(Source: P.A. 98-1049, eff. 8-25-14.)