Bill Text: IL HB5072 | 2009-2010 | 96th General Assembly | Introduced
Bill Title: Amends the Illinois Municipal Code. Provides that, for the purpose of imposing a home rule or non-home rule municipal retailers' occupation tax, if a purchase order is received at a retailer's branch location within a municipality, and delivery is made to the consumer within that municipality, then that municipality's tax applies regardless of whether or not the retailer has a primary place of business located in another municipality. Effective immediately.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-03-15 - Rule 19(a) / Re-referred to Rules Committee [HB5072 Detail]
Download: Illinois-2009-HB5072-Introduced.html
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1 | AN ACT concerning local government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Municipal Code is amended by | ||||||||||||||||||||||||||
5 | changing Sections 8-11-1 and 8-11-1.3 as follows:
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6 | (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
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7 | Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax | ||||||||||||||||||||||||||
8 | Act. The
corporate authorities of a home rule municipality may
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9 | impose a tax upon all persons engaged in the business of | ||||||||||||||||||||||||||
10 | selling tangible
personal property, other than an item of | ||||||||||||||||||||||||||
11 | tangible personal property titled
or registered with an agency | ||||||||||||||||||||||||||
12 | of this State's government, at retail in the
municipality on | ||||||||||||||||||||||||||
13 | the gross receipts from these sales made in
the course of such | ||||||||||||||||||||||||||
14 | business. If imposed, the tax shall only
be imposed in 1/4% | ||||||||||||||||||||||||||
15 | increments. On and after September 1, 1991, this
additional tax | ||||||||||||||||||||||||||
16 | may not be imposed on the sales of food for human
consumption | ||||||||||||||||||||||||||
17 | that is to be consumed off the premises where it
is sold (other | ||||||||||||||||||||||||||
18 | than alcoholic beverages, soft drinks and food that has
been | ||||||||||||||||||||||||||
19 | prepared for immediate consumption) and prescription and
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20 | nonprescription medicines, drugs, medical appliances and | ||||||||||||||||||||||||||
21 | insulin, urine
testing materials, syringes and needles used by | ||||||||||||||||||||||||||
22 | diabetics. The tax imposed
by a home rule municipality under | ||||||||||||||||||||||||||
23 | this Section and all
civil penalties that may be assessed as an |
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1 | incident of the tax shall
be collected and enforced by the | ||||||
2 | State Department of
Revenue. The certificate of registration | ||||||
3 | that is issued by
the Department to a retailer under the | ||||||
4 | Retailers' Occupation Tax Act
shall permit the retailer to | ||||||
5 | engage in a business that is taxable
under any ordinance or | ||||||
6 | resolution enacted pursuant to
this Section without | ||||||
7 | registering separately with the Department under such
| ||||||
8 | ordinance or resolution or under this Section. The Department | ||||||
9 | shall have
full power to administer and enforce this Section; | ||||||
10 | to collect all taxes and
penalties due hereunder; to dispose of | ||||||
11 | taxes and penalties so collected in
the manner hereinafter | ||||||
12 | provided; and to determine all rights to
credit memoranda | ||||||
13 | arising on account of the erroneous payment of tax or
penalty | ||||||
14 | hereunder. In the administration of, and compliance with, this
| ||||||
15 | Section the Department and persons who are subject to this | ||||||
16 | Section shall
have the same rights, remedies, privileges, | ||||||
17 | immunities, powers and duties,
and be subject to the same | ||||||
18 | conditions, restrictions, limitations, penalties
and | ||||||
19 | definitions of terms, and employ the same modes of procedure, | ||||||
20 | as are
prescribed in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, | ||||||
21 | 1m, 1n, 2 through
2-65 (in
respect to all provisions therein | ||||||
22 | other than the State rate of tax), 2c, 3
(except as to the | ||||||
23 | disposition of taxes and penalties collected), 4, 5, 5a,
5b, | ||||||
24 | 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, | ||||||
25 | 10, 11,
12 and 13 of the Retailers' Occupation Tax Act and | ||||||
26 | Section 3-7 of the
Uniform Penalty and Interest Act, as fully |
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1 | as if those provisions were
set forth herein.
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2 | No tax may be imposed by a home rule municipality under | ||||||
3 | this Section
unless the municipality also imposes a tax at the | ||||||
4 | same rate under Section
8-11-5 of this Act.
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5 | Persons subject to any tax imposed under the authority | ||||||
6 | granted in this
Section may reimburse themselves for their | ||||||
7 | seller's tax liability hereunder
by separately stating that tax | ||||||
8 | as an additional charge, which charge may be
stated in | ||||||
9 | combination, in a single amount, with State tax which sellers | ||||||
10 | are
required to collect under the Use Tax Act, pursuant to such | ||||||
11 | bracket
schedules as the Department may prescribe.
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12 | Whenever the Department determines that a refund should be | ||||||
13 | made under
this Section to a claimant instead of issuing a | ||||||
14 | credit memorandum, the
Department shall notify the State | ||||||
15 | Comptroller, who shall cause the
order to be drawn for the | ||||||
16 | amount specified and to the person named
in the notification | ||||||
17 | from the Department. The refund shall be paid by the
State | ||||||
18 | Treasurer out of the home rule municipal retailers' occupation | ||||||
19 | tax fund.
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20 | The Department shall immediately pay over to the State
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21 | Treasurer, ex officio, as trustee, all taxes and penalties | ||||||
22 | collected
hereunder. On or before the 25th day of each calendar | ||||||
23 | month, the
Department shall prepare and certify to the | ||||||
24 | Comptroller the disbursement of
stated sums of money to named | ||||||
25 | municipalities, the municipalities to be
those from which | ||||||
26 | retailers have paid taxes or penalties hereunder to the
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1 | Department during the second preceding calendar month. The | ||||||
2 | amount to be
paid to each municipality shall be the amount (not | ||||||
3 | including credit
memoranda) collected hereunder during the | ||||||
4 | second preceding calendar month
by the Department plus an | ||||||
5 | amount the Department determines is necessary to
offset any | ||||||
6 | amounts that were erroneously paid to a different
taxing body, | ||||||
7 | and not including an amount equal to the amount of refunds
made | ||||||
8 | during the second preceding calendar month by the Department on
| ||||||
9 | behalf of such municipality, and not including any amount that | ||||||
10 | the Department
determines is necessary to offset any amounts | ||||||
11 | that were payable to a
different taxing body but were | ||||||
12 | erroneously paid to the municipality. Within
10 days after | ||||||
13 | receipt by the Comptroller of the disbursement certification
to | ||||||
14 | the municipalities provided for in this Section to be given to | ||||||
15 | the
Comptroller by the Department, the Comptroller shall cause | ||||||
16 | the orders to be
drawn for the respective amounts in accordance | ||||||
17 | with the directions
contained in the certification.
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18 | In addition to the disbursement required by the preceding | ||||||
19 | paragraph and
in order to mitigate delays caused by | ||||||
20 | distribution procedures, an
allocation shall, if requested, be | ||||||
21 | made within 10 days after January 14,
1991, and in November of | ||||||
22 | 1991 and each year thereafter, to each
municipality that | ||||||
23 | received more than $500,000 during the preceding fiscal
year, | ||||||
24 | (July 1 through June 30) whether collected by the municipality | ||||||
25 | or
disbursed by the Department as required by this Section. | ||||||
26 | Within 10 days
after January 14, 1991, participating |
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1 | municipalities shall notify the
Department in writing of their | ||||||
2 | intent to participate. In addition, for the
initial | ||||||
3 | distribution, participating municipalities shall certify to | ||||||
4 | the
Department the amounts collected by the municipality for | ||||||
5 | each month under
its home rule occupation and service | ||||||
6 | occupation tax during the period July
1, 1989 through June 30, | ||||||
7 | 1990. The allocation within 10 days after January
14, 1991, | ||||||
8 | shall be in an amount equal to the monthly average of these
| ||||||
9 | amounts, excluding the 2 months of highest receipts. The | ||||||
10 | monthly average
for the period of July 1, 1990 through June 30, | ||||||
11 | 1991 will be determined as
follows: the amounts collected by | ||||||
12 | the municipality under its home rule
occupation and service | ||||||
13 | occupation tax during the period of July 1, 1990
through | ||||||
14 | September 30, 1990, plus amounts collected by the Department | ||||||
15 | and
paid to such municipality through June 30, 1991, excluding | ||||||
16 | the 2 months of
highest receipts. The monthly average for each | ||||||
17 | subsequent period of July 1
through June 30 shall be an amount | ||||||
18 | equal to the monthly distribution made
to each such | ||||||
19 | municipality under the preceding paragraph during this period,
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20 | excluding the 2 months of highest receipts. The distribution | ||||||
21 | made in
November 1991 and each year thereafter under this | ||||||
22 | paragraph and the
preceding paragraph shall be reduced by the | ||||||
23 | amount allocated and disbursed
under this paragraph in the | ||||||
24 | preceding period of July 1 through June 30.
The Department | ||||||
25 | shall prepare and certify to the Comptroller for
disbursement | ||||||
26 | the allocations made in accordance with this paragraph.
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1 | For the purpose of determining the local governmental unit | ||||||
2 | whose tax
is applicable, a retail sale by a producer of coal or | ||||||
3 | other mineral
mined in Illinois is a sale at retail at the | ||||||
4 | place where the coal or
other mineral mined in Illinois is | ||||||
5 | extracted from the earth. This
paragraph does not apply to coal | ||||||
6 | or other mineral when it is delivered
or shipped by the seller | ||||||
7 | to the purchaser at a point outside Illinois so
that the sale | ||||||
8 | is exempt under the United States Constitution as a sale in
| ||||||
9 | interstate or foreign commerce.
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10 | If a purchase order is received at a retailer's branch | ||||||
11 | location within a municipality that imposes a tax under this | ||||||
12 | Section, and delivery is made to the consumer within that | ||||||
13 | municipality, then that municipality's tax applies regardless | ||||||
14 | of whether or not the retailer has a primary place of business | ||||||
15 | located in another municipality. | ||||||
16 | Nothing in this Section shall be construed to authorize a
| ||||||
17 | municipality to impose a tax upon the privilege of engaging in | ||||||
18 | any
business which under the Constitution of the United States | ||||||
19 | may not be
made the subject of taxation by this State.
| ||||||
20 | An ordinance or resolution imposing or discontinuing a tax | ||||||
21 | hereunder or
effecting a change in the rate thereof shall be | ||||||
22 | adopted and a certified
copy thereof filed with the Department | ||||||
23 | on or before the first day of June,
whereupon the Department | ||||||
24 | shall proceed to administer and enforce this
Section as of the | ||||||
25 | first day of September next following the
adoption and filing. | ||||||
26 | Beginning January 1, 1992, an ordinance or resolution
imposing |
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1 | or discontinuing the tax hereunder or effecting a change in the
| ||||||
2 | rate thereof shall be adopted and a certified copy thereof | ||||||
3 | filed with the
Department on or before the first day of July, | ||||||
4 | whereupon the Department
shall proceed to administer and | ||||||
5 | enforce this Section as of the first day of
October next | ||||||
6 | following such adoption and filing. Beginning January 1, 1993,
| ||||||
7 | an ordinance or resolution imposing or discontinuing the tax | ||||||
8 | hereunder or
effecting a change in the rate thereof shall be | ||||||
9 | adopted and a certified
copy thereof filed with the Department | ||||||
10 | on or before the first day of
October, whereupon the Department | ||||||
11 | shall proceed to administer and enforce
this Section as of the | ||||||
12 | first day of January next following the
adoption and filing.
| ||||||
13 | However, a municipality located in a county with a population | ||||||
14 | in excess of
3,000,000 that elected to become a home rule unit | ||||||
15 | at the general primary
election in
1994 may adopt an ordinance | ||||||
16 | or resolution imposing the tax under this Section
and file a | ||||||
17 | certified copy of the ordinance or resolution with the | ||||||
18 | Department on
or before July 1, 1994. The Department shall then | ||||||
19 | proceed to administer and
enforce this Section as of October 1, | ||||||
20 | 1994.
Beginning April 1, 1998, an ordinance or
resolution | ||||||
21 | imposing or
discontinuing the tax hereunder or effecting a | ||||||
22 | change in the rate thereof shall
either (i) be adopted and a | ||||||
23 | certified copy thereof filed with the Department on
or
before | ||||||
24 | the first day of April, whereupon the Department shall proceed | ||||||
25 | to
administer and enforce this Section as of the first day of | ||||||
26 | July next following
the adoption and filing; or (ii) be adopted |
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1 | and a certified copy thereof filed
with the Department on or | ||||||
2 | before the first day of October, whereupon the
Department shall | ||||||
3 | proceed to administer and enforce this Section as of the first
| ||||||
4 | day of January next following the adoption and filing.
| ||||||
5 | When certifying the amount of a monthly disbursement to a | ||||||
6 | municipality
under this Section, the Department shall increase | ||||||
7 | or decrease the amount by
an amount necessary to offset any | ||||||
8 | misallocation of previous disbursements.
The offset amount | ||||||
9 | shall be the amount erroneously disbursed
within the previous 6 | ||||||
10 | months from the time a misallocation is discovered.
| ||||||
11 | Any unobligated balance remaining in the Municipal | ||||||
12 | Retailers' Occupation
Tax Fund on December 31, 1989, which fund | ||||||
13 | was abolished by Public Act
85-1135, and all receipts of | ||||||
14 | municipal tax as a result of audits of
liability periods prior | ||||||
15 | to January 1, 1990, shall be paid into the Local
Government Tax | ||||||
16 | Fund for distribution as provided by this Section prior to
the | ||||||
17 | enactment of Public Act 85-1135. All receipts of municipal tax | ||||||
18 | as a
result of an assessment not arising from an audit, for | ||||||
19 | liability periods
prior to January 1, 1990, shall be paid into | ||||||
20 | the Local Government Tax Fund
for distribution before July 1, | ||||||
21 | 1990, as provided by this Section prior to
the enactment of | ||||||
22 | Public Act 85-1135; and on and after July 1,
1990, all such | ||||||
23 | receipts shall be distributed as provided in Section
6z-18 of | ||||||
24 | the State Finance Act.
| ||||||
25 | As used in this Section, "municipal" and "municipality" | ||||||
26 | means a city,
village or incorporated town, including an |
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1 | incorporated town that has
superseded a civil township.
| ||||||
2 | This Section shall be known and may be cited as the Home | ||||||
3 | Rule Municipal
Retailers' Occupation Tax Act.
| ||||||
4 | (Source: P.A. 90-689, eff. 7-31-98; 91-51, eff. 6-30-99.)
| ||||||
5 | (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
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6 | Sec. 8-11-1.3. Non-Home Rule Municipal Retailers' | ||||||
7 | Occupation Tax Act. The corporate authorities of a non-home | ||||||
8 | rule municipality may impose
a tax upon all persons engaged in | ||||||
9 | the business of selling tangible
personal property, other than | ||||||
10 | on an item of tangible personal property
which is titled and | ||||||
11 | registered by an agency of this State's Government,
at retail | ||||||
12 | in the municipality for expenditure on
public infrastructure or | ||||||
13 | for property tax relief or both as defined in
Section 8-11-1.2 | ||||||
14 | if approved by
referendum as provided in Section 8-11-1.1, of | ||||||
15 | the gross receipts from such
sales made in the course of such | ||||||
16 | business.
The tax imposed may not be more than 1% and may be | ||||||
17 | imposed only in
1/4% increments. The tax may not be imposed on | ||||||
18 | the sale of food for human
consumption that is
to be consumed | ||||||
19 | off the premises where it is sold (other than alcoholic
| ||||||
20 | beverages, soft drinks, and food that has been prepared for | ||||||
21 | immediate
consumption) and prescription and nonprescription | ||||||
22 | medicines, drugs, medical
appliances, and insulin, urine | ||||||
23 | testing materials, syringes, and needles used by
diabetics.
The | ||||||
24 | tax imposed by a
municipality pursuant to this Section and all | ||||||
25 | civil penalties that may be
assessed as an incident thereof |
| |||||||
| |||||||
1 | shall be collected and enforced by the
State Department of | ||||||
2 | Revenue. The certificate of registration which is
issued by the | ||||||
3 | Department to a retailer under the Retailers' Occupation Tax
| ||||||
4 | Act shall permit such retailer to engage in a business which is | ||||||
5 | taxable
under any ordinance or resolution enacted pursuant to
| ||||||
6 | this Section without registering separately with the | ||||||
7 | Department under
such ordinance or resolution or under this | ||||||
8 | Section. The Department
shall have full power to administer and | ||||||
9 | enforce this Section; to collect
all taxes and penalties due | ||||||
10 | hereunder; to dispose of taxes and penalties
so collected in | ||||||
11 | the manner hereinafter provided, and to determine all
rights to | ||||||
12 | credit memoranda, arising on account of the erroneous payment
| ||||||
13 | of tax or penalty hereunder. In the administration of, and | ||||||
14 | compliance
with, this Section, the Department and persons who | ||||||
15 | are subject to this
Section shall have the same rights, | ||||||
16 | remedies, privileges, immunities,
powers and duties, and be | ||||||
17 | subject to the same conditions, restrictions,
limitations, | ||||||
18 | penalties and definitions of terms, and employ the same
modes | ||||||
19 | of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d, | ||||||
20 | 1e,
1f, 1i, 1j, 2 through 2-65 (in respect to all provisions | ||||||
21 | therein other than
the State rate of tax), 2c, 3 (except as to | ||||||
22 | the disposition of taxes and
penalties collected), 4, 5, 5a, | ||||||
23 | 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
6, 6a, 6b, 6c, 7, 8, | ||||||
24 | 9, 10, 11, 12 and 13 of the Retailers'
Occupation Tax Act and | ||||||
25 | Section 3-7 of the Uniform Penalty and Interest
Act as fully as | ||||||
26 | if those provisions were set forth herein.
|
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| |||||||
1 | No municipality may impose a tax under this Section unless | ||||||
2 | the municipality
also imposes a tax at the same rate under | ||||||
3 | Section 8-11-1.4 of this Code.
| ||||||
4 | Persons subject to any tax imposed pursuant to the | ||||||
5 | authority granted
in this Section may reimburse themselves for | ||||||
6 | their seller's tax
liability hereunder by separately stating | ||||||
7 | such tax as an additional
charge, which charge may be stated in | ||||||
8 | combination, in a single amount,
with State tax which sellers | ||||||
9 | are required to collect under the Use Tax
Act, pursuant to such | ||||||
10 | bracket schedules as the Department may prescribe.
| ||||||
11 | Whenever the Department determines that a refund should be | ||||||
12 | made under
this Section to a claimant instead of issuing a | ||||||
13 | credit memorandum, the
Department shall notify the State | ||||||
14 | Comptroller, who shall cause the
order to be drawn for the | ||||||
15 | amount specified, and to the person named,
in such notification | ||||||
16 | from the Department. Such refund shall be paid by
the State | ||||||
17 | Treasurer out of the non-home rule municipal retailers'
| ||||||
18 | occupation tax fund.
| ||||||
19 | The Department shall forthwith pay over to the State | ||||||
20 | Treasurer, ex
officio, as trustee, all taxes and penalties | ||||||
21 | collected hereunder. On or
before the 25th day of each calendar | ||||||
22 | month, the Department shall
prepare and certify to the | ||||||
23 | Comptroller the disbursement of stated sums
of money to named | ||||||
24 | municipalities, the municipalities to be those from
which | ||||||
25 | retailers have paid taxes or penalties hereunder to the | ||||||
26 | Department
during the second preceding calendar month. The |
| |||||||
| |||||||
1 | amount to be paid to each
municipality shall be the amount (not | ||||||
2 | including credit memoranda) collected
hereunder during the | ||||||
3 | second preceding calendar month by the Department plus
an | ||||||
4 | amount the Department determines is necessary to offset any | ||||||
5 | amounts
which were erroneously paid to a different taxing body, | ||||||
6 | and not including
an amount equal to the amount of refunds made | ||||||
7 | during the second preceding
calendar month by the Department on | ||||||
8 | behalf of such municipality, and not
including any amount which | ||||||
9 | the Department determines is necessary to offset
any amounts | ||||||
10 | which were payable to a different taxing body but were
| ||||||
11 | erroneously paid to the municipality. Within 10 days after | ||||||
12 | receipt, by the
Comptroller, of the disbursement certification | ||||||
13 | to the municipalities,
provided for in this Section to be given | ||||||
14 | to the Comptroller by the
Department, the Comptroller shall | ||||||
15 | cause the orders to be drawn for the
respective amounts in | ||||||
16 | accordance with the directions contained in such
| ||||||
17 | certification.
| ||||||
18 | For the purpose of determining the local governmental unit | ||||||
19 | whose tax
is applicable, a retail sale, by a producer of coal | ||||||
20 | or other mineral
mined in Illinois, is a sale at retail at the | ||||||
21 | place where the coal or
other mineral mined in Illinois is | ||||||
22 | extracted from the earth. This
paragraph does not apply to coal | ||||||
23 | or other mineral when it is delivered
or shipped by the seller | ||||||
24 | to the purchaser at a point outside Illinois so
that the sale | ||||||
25 | is exempt under the Federal Constitution as a sale in
| ||||||
26 | interstate or foreign commerce.
|
| |||||||
| |||||||
1 | If a purchase order is received at a retailer's branch | ||||||
2 | location within a municipality that imposes a tax under this | ||||||
3 | Section, and delivery is made to the consumer within that | ||||||
4 | municipality, then that municipality's tax applies regardless | ||||||
5 | of whether or not the retailer has a primary place of business | ||||||
6 | located in another municipality. | ||||||
7 | Nothing in this Section shall be construed to authorize a
| ||||||
8 | municipality to impose a tax upon the privilege of engaging in | ||||||
9 | any
business which under the constitution of the United States | ||||||
10 | may not be
made the subject of taxation by this State.
| ||||||
11 | When certifying the amount of a monthly disbursement to a | ||||||
12 | municipality
under this Section, the Department shall increase | ||||||
13 | or decrease such amount
by an amount necessary to offset any | ||||||
14 | misallocation of previous
disbursements. The offset amount | ||||||
15 | shall be the amount erroneously disbursed
within the previous 6 | ||||||
16 | months from the time a misallocation is discovered.
| ||||||
17 | The Department of Revenue shall implement this amendatory | ||||||
18 | Act of the 91st
General Assembly so as to collect the tax on | ||||||
19 | and after January 1, 2002.
| ||||||
20 | As used in this Section, "municipal" and "municipality" | ||||||
21 | means a city,
village or incorporated town, including an | ||||||
22 | incorporated town which has
superseded a civil township.
| ||||||
23 | This Section shall be known and may be cited as the | ||||||
24 | "Non-Home Rule
Municipal Retailers' Occupation Tax Act".
| ||||||
25 | (Source: P.A. 94-679, eff. 1-1-06.)
| ||||||
26 | Section 99. Effective date. This Act takes effect upon |
| |||||||
| |||||||
1 | becoming law.
|