Bill Text: IL SB3458 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Municipal Cannabis Retailers' Occupation Tax Law in the Illinois Municipal Code. Provides that an elected official of a municipality that receives revenues pursuant to the Law may request from the Department of Revenue the total amount of deposits received by the municipality each calendar year, notwithstanding any other provision of law. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-18 - Referred to Assignments [SB3458 Detail]

Download: Illinois-2021-SB3458-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB3458 Introduced 1/18/2022, by Sen. Doris Turner SYNOPSIS AS INTRODUCED:
65 ILCS 5/8-11-23
Amends the Municipal Cannabis Retailers' Occupation Tax Law in the Illinois Municipal Code. Provides that an elected official of a municipality that receives revenues pursuant to the Law may request from the Department of Revenue the total amount of deposits received by the municipality each calendar year, notwithstanding any other provision of law. Effective immediately.
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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 8-11-23 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
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. 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

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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 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

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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
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

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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
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

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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) An elected official of a municipality that receives
revenues pursuant to this Law may request from the Department
of Revenue the total amount of deposits received by the
municipality each calendar year, notwithstanding any other
provision of law.
(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.