Bill Text: IL HB5760 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the County Cannabis Retailers' Occupation Tax Law and Municipal Cannabis Retailers' Occupation Tax Law. Provides that a certified copy of an ordinance imposing, or ordinance or resolution changing or discontinuing, a tax under the specified Laws shall be filed with the Department of Revenue and proof of filing shall be maintained by the county or municipality for at least 5 years. Effective immediately.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2022-11-16 - Referred to Rules Committee [HB5760 Detail]

Download: Illinois-2021-HB5760-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB5760 Introduced , by Rep. Deb Conroy SYNOPSIS AS INTRODUCED:
55 ILCS 5/5-1006.8
65 ILCS 5/8-11-23
Amends the County Cannabis Retailers' Occupation Tax Law and Municipal Cannabis Retailers' Occupation Tax Law. Provides that a certified copy of an ordinance imposing, or ordinance or resolution changing or discontinuing, a tax under the specified Laws shall be filed with the Department of Revenue and proof of filing shall be maintained by the county or municipality for at least 5 years. Effective immediately.
LRB102 28000 AWJ 39799 b
A BILL FOR
HB5760 LRB102 28000 AWJ 39799 b
AN ACT concerning local government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Counties Code is amended by changing
Section 5-1006.8 as follows:
(55 ILCS 5/5-1006.8)
Sec. 5-1006.8. County Cannabis Retailers' Occupation Tax
Law.
(a) This Section may be referred to as the County Cannabis
Retailers' Occupation Tax Law. The corporate authorities of
any county may, by ordinance, impose a tax upon all persons
engaged in the business of selling cannabis, other than
cannabis purchased under the Compassionate Use of Medical
Cannabis Program Act, at retail in the county on the gross
receipts from these sales made in the course of that business.
A certified copy of an ordinance imposing, or ordinance or
resolution changing or discontinuing, a tax under this Section
shall be filed with the Department of Revenue and proof of
filing shall be maintained by the county for at least 5 years.
If imposed, the tax shall be imposed only in 0.25% increments.
The tax rate may not exceed: (i) 3.75% of the gross receipts of
sales made in unincorporated areas of the county; and (ii) 3%
of the gross receipts of sales made in a municipality located

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in the county. The tax imposed under this Section and all civil
penalties that may be assessed as an incident of the tax shall
be collected and enforced by the Department of Revenue. The
Department of Revenue shall have full power to administer and
enforce this Section; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided; and to determine all rights
to credit memoranda arising on account of the erroneous
payment of tax or penalty under this Section. In the
administration of and compliance with this Section, the
Department of Revenue 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 described in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
1n, 2 through 2-65 (in respect to all provisions therein other
than the State rate of tax), 2a, 2b, 2c, 2i, 3 (except as to
the disposition of taxes and penalties collected), 4, 5, 5a,
5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6bb, 6c, 6d,
7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation
Tax Act and Section 3-7 of the Uniform Penalty and Interest Act
as fully as if those provisions were set forth in this Section.
(b) Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating that

HB5760 - 3 - LRB102 28000 AWJ 39799 b
tax as an additional charge, which charge may be stated in
combination, in a single amount, with any State tax that
sellers are required to collect.
(c) Whenever the Department of Revenue determines that a
refund should be made under this Section to a claimant instead
of issuing a credit memorandum, the Department of Revenue
shall notify the State Comptroller, who shall cause the order
to be drawn for the amount specified and to the person named in
the notification from the Department of Revenue.
(d) The Department of Revenue shall immediately pay over
to the State Treasurer, ex officio, as trustee, all taxes and
penalties collected hereunder for deposit into the Local
Cannabis Retailers' Occupation Tax Trust Fund.
(e) On or before the 25th day of each calendar month, the
Department of Revenue shall prepare and certify to the
Comptroller the amount of money to be disbursed from the Local
Cannabis Retailers' Occupation Tax Trust Fund to counties from
which retailers have paid taxes or penalties under this
Section during the second preceding calendar month. The amount
to be paid to each county shall be the amount (not including
credit memoranda) collected under this Section from sales made
in the county during the second preceding calendar month, plus
an amount the Department of Revenue determines is necessary to
offset any amounts that were erroneously paid to a different
taxing body, and not including an amount equal to the amount of
refunds made during the second preceding calendar month by the

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Department on behalf of such county, and not including any
amount that the Department determines is necessary to offset
any amounts that were payable to a different taxing body but
were erroneously paid to the county, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the counties, shall
prepare and certify the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the counties
and the Tax Compliance and Administration Fund provided for in
this Section to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in the certification.
(f) An ordinance or resolution imposing or discontinuing a
tax under this Section or effecting a change in the rate
thereof that is adopted on or after June 25, 2019 (the
effective date of Public Act 101-27) and for which a certified
copy is filed with the Department on or before April 1, 2020
shall be administered and enforced by the Department beginning
on July 1, 2020. For ordinances filed with the Department
after April 1, 2020, an ordinance or resolution imposing or
discontinuing a tax under this Section or effecting a change
in the rate thereof shall either (i) be adopted and a certified

HB5760 - 5 - LRB102 28000 AWJ 39799 b
copy thereof filed with the Department on or before the first
day of April, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of July
next following the adoption and filing; or (ii) be adopted and
a certified copy thereof filed with the Department on or
before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following the adoption and filing.
(g) Notwithstanding any provision in this Section to the
contrary, if an ordinance or resolution imposing a tax under
this Section was adopted on or before October 1, 2020 and a
certified copy thereof was filed with the Department of
Revenue on or before November 1, 2020, then the Department
shall proceed to administer and enforce this Section as of May
1, 2021 for such ordinances or resolutions.
(Source: P.A. 101-27, eff. 6-25-19; 101-363, eff. 8-9-19;
101-593, eff. 12-4-19; 102-2, eff. 4-2-21.)
Section 10. The Illinois Municipal Code is amended by
changing Section 8-11-23 as follows:
(65 ILCS 5/8-11-23)
Sec. 8-11-23. Municipal Cannabis Retailers' Occupation Tax
Law.
(a) This Section may be referred to as the Municipal
Cannabis Retailers' Occupation Tax Law. The corporate

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authorities of any municipality may, by ordinance, impose a
tax upon all persons engaged in the business of selling
cannabis, other than cannabis purchased under the
Compassionate Use of Medical Cannabis Program Act, at retail
in the municipality on the gross receipts from these sales
made in the course of that business. A certified copy of an
ordinance imposing, or ordinance or resolution changing or
discontinuing, a tax under this Section shall be filed with
the Department of Revenue and proof of filing shall be
maintained by the municipality for at least 5 years. If
imposed, the tax may not exceed 3% of the gross receipts from
these sales and shall only be imposed in 1/4% increments. The
tax imposed under this Section and all civil penalties that
may be assessed as an incident of the tax shall be collected
and enforced by the Department of Revenue. The Department of
Revenue shall have full power to administer and enforce this
Section; to collect all taxes and penalties due hereunder; to
dispose of taxes and penalties so collected in the manner
hereinafter provided; and to determine all rights to credit
memoranda arising on account of the erroneous payment of tax
or penalty under this Section. 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

HB5760 - 7 - LRB102 28000 AWJ 39799 b
of procedure, as are prescribed in Sections 1, 1a, 1d, 1e, 1f,
1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
provisions therein other than the State rate of tax), 2a, 2b,
2c, 2i, 3 (except as to the disposition of taxes and penalties
collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth herein.
(b) Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating that
tax as an additional charge, which charge may be stated in
combination, in a single amount, with any State tax that
sellers are required to collect.
(c) Whenever the Department of Revenue determines that a
refund should be made under this Section to a claimant instead
of issuing a credit memorandum, the Department of Revenue
shall notify the State Comptroller, who shall cause the order
to be drawn for the amount specified and to the person named in
the notification from the Department of Revenue.
(d) The Department of Revenue shall immediately pay over
to the State Treasurer, ex officio, as trustee, all taxes and
penalties collected hereunder for deposit into the Local
Cannabis Retailers' Occupation Tax Trust Fund.
(e) On or before the 25th day of each calendar month, the

HB5760 - 8 - LRB102 28000 AWJ 39799 b
Department of Revenue shall prepare and certify to the
Comptroller the amount of money to be disbursed from the Local
Cannabis Retailers' Occupation Tax Trust Fund to
municipalities from which retailers have paid taxes or
penalties under this Section during the second preceding
calendar month. The amount to be paid to each municipality
shall be the amount (not including credit memoranda) collected
under this Section from sales made in the municipality during
the second preceding calendar month, plus an amount the
Department of Revenue determines is necessary to offset any
amounts that were erroneously paid to a different taxing body,
and not including an amount equal to the amount of refunds made
during the second preceding calendar month by the Department
on behalf of such municipality, and not including any amount
that the Department determines is necessary to offset any
amounts that were payable to a different taxing body but were
erroneously paid to the municipality, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by

HB5760 - 9 - LRB102 28000 AWJ 39799 b
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
(f) An ordinance or resolution imposing or discontinuing a
tax under this Section or effecting a change in the rate
thereof that is adopted on or after June 25, 2019 (the
effective date of Public Act 101-27) and for which a certified
copy is filed with the Department on or before April 1, 2020
shall be administered and enforced by the Department beginning
on July 1, 2020. For ordinances filed with the Department
after April 1, 2020, an ordinance or resolution imposing or
discontinuing a tax under this Section or effecting a change
in the rate thereof shall either (i) be adopted and a certified
copy thereof filed with the Department on or before the first
day of April, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of July
next following the adoption and filing; or (ii) be adopted and
a certified copy thereof filed with the Department on or
before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following the adoption and filing.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
Section 99. Effective date. This Act takes effect upon
becoming law.