Bill Text: IL SB2906 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Amends the Home Rule County Use Tax Law in the Counties Code. Makes a technical change.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2024-05-31 - Rule 19(a) / Re-referred to Rules Committee [SB2906 Detail]

Download: Illinois-2023-SB2906-Engrossed.html

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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 Counties Code is amended by changing
Section 5-1008 as follows:
(55 ILCS 5/5-1008) (from Ch. 34, par. 5-1008)
Sec. 5-1008. Home Rule County Use Tax.
(a) As used in this Section, "Department" means the
Department of Revenue.
(b) The corporate authorities of a home rule county may
impose a tax upon the privilege of using, in such county, any
item of tangible personal property which is purchased at
retail from a retailer, and which is titled or registered to a
purchaser residing within the corporate limits of such home
rule county 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", approved July 14, 1955, as
amended. Such tax shall be collected from persons whose
Illinois address for titling or registration purposes is given
as being in such county. Except as provided in subsection (c),
such Such tax shall be collected by the county imposing such
tax.

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(c) If a home rule county imposes the tax authorized by
subsection (b), then the tax shall be collected by the
Department when the property is purchased at retail from a
retailer in any county in this State other than the home rule
county imposing the tax. The tax shall be remitted to the State
or an exemption determination must be 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 subsection, to collect all taxes, penalties, and
interest due under this subsection, to dispose of taxes,
penalties, and interest so collected in the manner provided in
this subsection, and to determine all rights to credit
memoranda or refunds arising on account of the erroneous
payment of tax, penalty, or interest under this subsection. In
the administration of and compliance with this subsection, the
Department and persons who are subject to this subsection
shall have the same rights, remedies, privileges, immunities,
powers, and duties, and be subject to the same conditions,
restrictions, limitations, penalties, and definitions of

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terms, and employ the same modes of procedure as are
prescribed in the Use Tax Act (except the definition of
"retailer maintaining a place of business in this State" and
provisions pertaining to the State rate of tax) and the
Uniform Penalty and Interest Act that are not inconsistent
with this subsection, as fully as if the Use Tax Act and the
Uniform Penalty and Interest Act were set forth in this
subsection.
Whenever the Department determines that a refund shall be
made under this subsection 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 the notification
from the Department. The refund shall be paid by the State
Treasurer out of the home rule county retailers' occupation
tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, for deposit into the home
rule county retailers' occupation tax fund, all taxes,
penalties, and interest collected under this subsection. 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 the named counties,
the county in each instance to be that county for which the
Department, during the second preceding calendar month,
collected county use tax from any person whose Illinois

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address for titling or registration purposes is given as being
in that county. The amount to be paid to each county shall be
the amount (not including credit memoranda) collected under
this subsection 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 each county, less 2% of
the remainder, which the Department shall pay into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the counties, shall
prepare and certify to the State Comptroller the amount to be
paid into the Tax Compliance and Administration Fund under
this subsection. Within 10 days after receipt by the State
Comptroller of the disbursement certification to the counties
and the Tax Compliance and Administration Fund provided for in
this subsection 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.
A certified copy of an ordinance imposing or discontinuing
the tax to be collected and enforced by the Department under
this subsection shall be adopted and either (i) filed with the
Department after October 1 but on or before April 1, whereupon
the Department shall proceed to administer and enforce this
subsection on behalf of the counties as of July 1 next
following the adoption and filing; or (ii) filed with the

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Department after April 1 but on or before October 1, whereupon
the Department shall proceed to administer and enforce this
subsection on behalf of the counties as of January 1 next
following the adoption and filing. No ordinance may be filed
with the Department under this subsection before the effective
date of this amendatory Act of the 103rd General Assembly. The
Department shall not begin collection and enforcement in
accordance with this subsection before January 1, 2025.
Nothing in this subsection shall prevent a home rule
county from collecting the tax pursuant to subsection (b) in
any situation where the tax is not collected by the Department
under this subsection.
(d) This Section shall be known and may be cited as the
"Home Rule County Use Tax Law".
(Source: P.A. 91-51, eff. 6-30-99.)