Bill Text: IL HB2649 | 2015-2016 | 99th General Assembly | Introduced


Bill Title: Amends the Illinois Municipal Code. Provides that the rate of tax under the Non-Home Rule Municipal Retailers' Occupation Tax Act, the Non-Home Rule Municipal Service Occupation Tax Act, and the Non-Home Rule Municipal Use Tax Act may not exceed 2% (currently, 1%). Provides that the rate of tax that may be imposed for municipal operations may not exceed 1%. With respect to the Non-Home Rule Municipal Retailers' Occupation Tax Act, the Non-Home Rule Municipal Service Occupation Tax Act, and the Non-Home Rule Municipal Use Tax Act, provides that the term "public infrastructure" includes the acquisition, repair, and maintenance of public safety equipment. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 4-1)

Status: (Introduced - Dead) 2016-04-08 - Rule 19(a) / Re-referred to Rules Committee [HB2649 Detail]

Download: Illinois-2015-HB2649-Introduced.html


99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB2649

Introduced , by Rep. Anthony DeLuca

SYNOPSIS AS INTRODUCED:
65 ILCS 5/8-11-1.1 from Ch. 24, par. 8-11-1.1
65 ILCS 5/8-11-1.2 from Ch. 24, par. 8-11-1.2
65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3
65 ILCS 5/8-11-1.4 from Ch. 24, par. 8-11-1.4
65 ILCS 5/8-11-1.5 from Ch. 24, par. 8-11-1.5

Amends the Illinois Municipal Code. Provides that the rate of tax under the Non-Home Rule Municipal Retailers' Occupation Tax Act, the Non-Home Rule Municipal Service Occupation Tax Act, and the Non-Home Rule Municipal Use Tax Act may not exceed 2% (currently, 1%). Provides that the rate of tax that may be imposed for municipal operations may not exceed 1%. With respect to the Non-Home Rule Municipal Retailers' Occupation Tax Act, the Non-Home Rule Municipal Service Occupation Tax Act, and the Non-Home Rule Municipal Use Tax Act, provides that the term "public infrastructure" includes the acquisition, repair, and maintenance of public safety equipment. Effective immediately.
LRB099 05877 HLH 30133 b
FISCAL NOTE ACT MAY APPLY

A BILL FOR

HB2649LRB099 05877 HLH 30133 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Municipal Code is amended by
5changing Sections 8-11-1.1, 8-11-1.2, 8-11-1.3, 8-11-1.4, and
68-11-1.5 as follows:
7 (65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
8 Sec. 8-11-1.1. Non-home rule municipalities; imposition of
9taxes.
10 (a) The corporate authorities of a non-home rule
11municipality may, upon approval of the electors of the
12municipality pursuant to subsection (b) of this Section, impose
13by ordinance or resolution the tax authorized in Sections
148-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act.
15 (b) The corporate authorities of the municipality may by
16ordinance or resolution call for the submission to the electors
17of the municipality the question of whether the municipality
18shall impose such tax or increase the rate of such tax. Such
19question shall be certified by the municipal clerk to the
20election authority in accordance with Section 28-5 of the
21Election Code and shall be in a form in accordance with Section
2216-7 of the Election Code.
23 Notwithstanding any provision of law to the contrary, if

HB2649- 2 -LRB099 05877 HLH 30133 b
1the proceeds of the tax may be used for municipal operations
2pursuant to Section 8-11-1.3, 8-11-1.4, or 8-11-1.5, then the
3election authority must submit the question in substantially
4the following form:
5 Shall the corporate authorities of the municipality be
6 authorized to levy a tax at a rate of (rate)% for
7 expenditures on municipal operations, expenditures on
8 public infrastructure, or property tax relief?
9 If a majority of the electors in the municipality voting
10upon the question vote in the affirmative, such tax shall be
11imposed.
12 Until January 1, 1992, an ordinance or resolution imposing
13the tax of not more than 1% hereunder or discontinuing the same
14shall be adopted and a certified copy thereof, together with a
15certification that the ordinance or resolution received
16referendum approval in the case of the imposition of such tax,
17filed with the Department of Revenue, on or before the first
18day of June, whereupon the Department shall proceed to
19administer and enforce the additional tax or to discontinue the
20tax, as the case may be, as of the first day of September next
21following such adoption and filing.
22 Beginning January 1, 1992 and through December 31, 1992, an
23ordinance or resolution imposing or discontinuing the tax
24hereunder shall be adopted and a certified copy thereof filed
25with the Department on or before the first day of July,
26whereupon the Department shall proceed to administer and

HB2649- 3 -LRB099 05877 HLH 30133 b
1enforce this Section as of the first day of October next
2following such adoption and filing.
3 Beginning January 1, 1993, and through September 30, 2002,
4an ordinance or resolution imposing or discontinuing the tax
5hereunder shall be adopted and a certified copy thereof filed
6with the Department on or before the first day of October,
7whereupon the Department shall proceed to administer and
8enforce this Section as of the first day of January next
9following such adoption and filing.
10 Beginning October 1, 2002, and through December 31, 2013,
11an ordinance or resolution imposing or discontinuing the tax
12under this Section or effecting a change in the rate of tax
13must either (i) be adopted and a certified copy of the
14ordinance or resolution filed with the Department on or before
15the first day of April, whereupon the Department shall proceed
16to administer and enforce this Section as of the first day of
17July next following the adoption and filing; or (ii) be adopted
18and a certified copy of the ordinance or resolution filed with
19the Department on or before the first day of October, whereupon
20the Department shall proceed to administer and enforce this
21Section as of the first day of January next following the
22adoption and filing.
23 Beginning January 1, 2014, if an ordinance or resolution
24imposing the tax under this Section, discontinuing the tax
25under this Section, or effecting a change in the rate of tax
26under this Section is adopted, a certified copy thereof,

HB2649- 4 -LRB099 05877 HLH 30133 b
1together with a certification that the ordinance or resolution
2received referendum approval in the case of the imposition of
3or increase in the rate of such tax, shall be filed with the
4Department of Revenue, either (i) on or before the first day of
5May, whereupon the Department shall proceed to administer and
6enforce this Section as of the first day of July next following
7the adoption and filing; or (ii) on or before the first day of
8October, whereupon the Department shall proceed to administer
9and enforce this Section as of the first day of January next
10following the adoption and filing.
11 Notwithstanding any provision in this Section to the
12contrary, if, in a non-home rule municipality with more than
13150,000 but fewer than 200,000 inhabitants, as determined by
14the last preceding federal decennial census, an ordinance or
15resolution under this Section imposes or discontinues a tax or
16changes the tax rate as of July 1, 2007, then that ordinance or
17resolution, together with a certification that the ordinance or
18resolution received referendum approval in the case of the
19imposition of the tax, must be adopted and a certified copy of
20that ordinance or resolution must be filed with the Department
21on or before May 15, 2007, whereupon the Department shall
22proceed to administer and enforce this Section as of July 1,
232007.
24 Notwithstanding any provision in this Section to the
25contrary, if, in a non-home rule municipality with more than
266,500 but fewer than 7,000 inhabitants, as determined by the

HB2649- 5 -LRB099 05877 HLH 30133 b
1last preceding federal decennial census, an ordinance or
2resolution under this Section imposes or discontinues a tax or
3changes the tax rate on or before May 20, 2009, then that
4ordinance or resolution, together with a certification that the
5ordinance or resolution received referendum approval in the
6case of the imposition of the tax, must be adopted and a
7certified copy of that ordinance or resolution must be filed
8with the Department on or before May 20, 2009, whereupon the
9Department shall proceed to administer and enforce this Section
10as of July 1, 2009.
11 A non-home rule municipality may file a certified copy of
12an ordinance or resolution, with a certification that the
13ordinance or resolution received referendum approval in the
14case of the imposition of the tax, with the Department of
15Revenue, as required under this Section, only after October 2,
162000.
17 The tax authorized by this Section may not be more than 2%
181% and may be imposed only in 1/4% increments. It is the intent
19of the General Assembly that the rate of tax that may be
20imposed for municipal operations may not exceed 1%; therefore,
21notwithstanding any other provision of law, if the tax under
22this Section is imposed at a rate of more than 1%, then,
23beginning with the first disbursement to occur on or after the
24effective date of the increase, the total amount that may be
25used for municipal operations may not exceed the total amount
26of the proceeds disbursed to the municipality under Sections

HB2649- 6 -LRB099 05877 HLH 30133 b
18-11-1.3, 8-11-1.4, and 8-11-1.5, multiplied by a fraction
2having a numerator of 1 and a denominator of the rate of tax.
3(Source: P.A. 98-584, eff. 8-27-13.)
4 (65 ILCS 5/8-11-1.2) (from Ch. 24, par. 8-11-1.2)
5 Sec. 8-11-1.2. Definition. As used in Sections 8-11-1.3,
68-11-1.4 and 8-11-1.5 of this Act:
7 (a) "Public infrastructure" means municipal roads and
8streets, access roads, bridges, and sidewalks; waste disposal
9systems; the acquisition, repair, and maintenance of public
10safety equipment; and water and sewer line extensions, water
11distribution and purification facilities, storm water drainage
12and retention facilities, and sewage treatment facilities. For
13purposes of referenda authorizing the imposition of taxes by
14the City of DuQuoin under Sections 8-11-1.3, 8-11-1.4, and
158-11-1.5 of this Act that are approved in November, 2002, or
16for purposes of referenda authorizing the imposition of taxes
17by the Village of Forsyth under Sections 8-11-1.3, 8-11-1.4,
18and 8-11-1.5 of this Act that are approved after the effective
19date of this amendatory Act of the 94th General Assembly,
20"public infrastructure" shall also include public schools.
21 (a-5) For the purposes of this Section, "public safety
22equipment" means firefighting, police, rescue, transportation,
23or communications equipment used by police departments, fire
24departments, or other first responders, including, but not
25limited to, police vehicles, fire trucks, surveillance

HB2649- 7 -LRB099 05877 HLH 30133 b
1equipment, and body cameras.
2 (b) "Property tax relief" means the action of a
3municipality to reduce the levy for real estate taxes or avoid
4an increase in the levy for real estate taxes that would
5otherwise have been required. Property tax relief or the
6avoidance of property tax must uniformly apply to all classes
7of property.
8(Source: P.A. 94-1078, eff. 1-9-07; 95-331, eff. 8-21-07.)
9 (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
10 Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
11Occupation Tax Act. The corporate authorities of a non-home
12rule municipality may impose a tax upon all persons engaged in
13the business of selling tangible personal property, other than
14on an item of tangible personal property which is titled and
15registered by an agency of this State's Government, at retail
16in the municipality for expenditure on public infrastructure or
17for property tax relief or both as defined in Section 8-11-1.2
18if approved by referendum as provided in Section 8-11-1.1, of
19the gross receipts from such sales made in the course of such
20business. If the tax is approved by referendum on or after July
2114, 2010 (the effective date of Public Act 96-1057), the
22corporate authorities of a non-home rule municipality may,
23until December 31, 2020, use the proceeds of the tax for
24expenditure on municipal operations, in addition to or in lieu
25of any expenditure on public infrastructure or for property tax

HB2649- 8 -LRB099 05877 HLH 30133 b
1relief. The tax imposed may not be more than 2% 1% and may be
2imposed only in 1/4% increments. It is the intent of the
3General Assembly that the rate of tax that may be imposed for
4municipal operations may not exceed 1%; therefore,
5notwithstanding any other provision of law, if the tax under
6this Section is imposed at a rate of more than 1%, then,
7beginning with the first disbursement to occur on or after the
8effective date of the increase, the total amount that may be
9used for municipal operations may not exceed the total amount
10of the proceeds disbursed to the municipality under this
11Section, Section 8-11-1.4, and Section 8-11-1.5, multiplied by
12a fraction having a numerator of 1 and a denominator of the
13rate of tax. The tax may not be imposed on the sale of food for
14human consumption that is to be consumed off the premises where
15it is sold (other than alcoholic beverages, soft drinks, and
16food that has been prepared for immediate consumption) and
17prescription and nonprescription medicines, drugs, medical
18appliances, and insulin, urine testing materials, syringes,
19and needles used by diabetics. The tax imposed by a
20municipality pursuant to this Section and all civil penalties
21that may be assessed as an incident thereof shall be collected
22and enforced by the State Department of Revenue. The
23certificate of registration which is issued by the Department
24to a retailer under the Retailers' Occupation Tax Act shall
25permit such retailer to engage in a business which is taxable
26under any ordinance or resolution enacted pursuant to this

HB2649- 9 -LRB099 05877 HLH 30133 b
1Section without registering separately with the Department
2under such ordinance or resolution or under this Section. The
3Department shall have full power to administer and enforce this
4Section; to collect all taxes and penalties due hereunder; to
5dispose of taxes and penalties so collected in the manner
6hereinafter provided, and to determine all rights to credit
7memoranda, arising on account of the erroneous payment of tax
8or penalty hereunder. In the administration of, and compliance
9with, this Section, the Department and persons who are subject
10to this Section shall have the same rights, remedies,
11privileges, immunities, powers and duties, and be subject to
12the same conditions, restrictions, limitations, penalties and
13definitions of terms, and employ the same modes of procedure,
14as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j,
152 through 2-65 (in respect to all provisions therein other than
16the State rate of tax), 2c, 3 (except as to the disposition of
17taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
185g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12 and
1913 of the Retailers' Occupation Tax Act and Section 3-7 of the
20Uniform Penalty and Interest Act as fully as if those
21provisions were set forth herein.
22 No municipality may impose a tax under this Section unless
23the municipality also imposes a tax at the same rate under
24Section 8-11-1.4 of this Code.
25 Persons subject to any tax imposed pursuant to the
26authority granted in this Section may reimburse themselves for

HB2649- 10 -LRB099 05877 HLH 30133 b
1their seller's tax liability hereunder by separately stating
2such tax as an additional charge, which charge may be stated in
3combination, in a single amount, with State tax which sellers
4are required to collect under the Use Tax Act, pursuant to such
5bracket schedules as the Department may prescribe.
6 Whenever the Department determines that a refund should be
7made under this Section to a claimant instead of issuing a
8credit memorandum, the Department shall notify the State
9Comptroller, who shall cause the order to be drawn for the
10amount specified, and to the person named, in such notification
11from the Department. Such refund shall be paid by the State
12Treasurer out of the non-home rule municipal retailers'
13occupation tax fund.
14 The Department shall forthwith pay over to the State
15Treasurer, ex officio, as trustee, all taxes and penalties
16collected hereunder.
17 As soon as possible after the first day of each month,
18beginning January 1, 2011, upon certification of the Department
19of Revenue, the Comptroller shall order transferred, and the
20Treasurer shall transfer, to the STAR Bonds Revenue Fund the
21local sales tax increment, as defined in the Innovation
22Development and Economy Act, collected under this Section
23during the second preceding calendar month for sales within a
24STAR bond district.
25 After the monthly transfer to the STAR Bonds Revenue Fund,
26on or before the 25th day of each calendar month, the

HB2649- 11 -LRB099 05877 HLH 30133 b
1Department shall prepare and certify to the Comptroller the
2disbursement of stated sums of money to named municipalities,
3the municipalities to be those from which retailers have paid
4taxes or penalties hereunder to the Department during the
5second preceding calendar month. The amount to be paid to each
6municipality shall be the amount (not including credit
7memoranda) collected hereunder during the second preceding
8calendar month by the Department plus an amount the Department
9determines is necessary to offset any amounts which were
10erroneously paid to a different taxing body, and not including
11an amount equal to the amount of refunds made during the second
12preceding calendar month by the Department on behalf of such
13municipality, and not including any amount which the Department
14determines is necessary to offset any amounts which were
15payable to a different taxing body but were erroneously paid to
16the municipality, and not including any amounts that are
17transferred to the STAR Bonds Revenue Fund. Within 10 days
18after receipt, by the Comptroller, of the disbursement
19certification to the municipalities, provided for in this
20Section to be given to the Comptroller by the Department, the
21Comptroller shall cause the orders to be drawn for the
22respective amounts in accordance with the directions contained
23in such certification.
24 For the purpose of determining the local governmental unit
25whose tax is applicable, a retail sale, by a producer of coal
26or other mineral mined in Illinois, is a sale at retail at the

HB2649- 12 -LRB099 05877 HLH 30133 b
1place where the coal or other mineral mined in Illinois is
2extracted from the earth. This paragraph does not apply to coal
3or other mineral when it is delivered or shipped by the seller
4to the purchaser at a point outside Illinois so that the sale
5is exempt under the Federal Constitution as a sale in
6interstate or foreign commerce.
7 Nothing in this Section shall be construed to authorize a
8municipality to impose a tax upon the privilege of engaging in
9any business which under the constitution of the United States
10may not be made the subject of taxation by this State.
11 When certifying the amount of a monthly disbursement to a
12municipality under this Section, the Department shall increase
13or decrease such amount by an amount necessary to offset any
14misallocation of previous disbursements. The offset amount
15shall be the amount erroneously disbursed within the previous 6
16months from the time a misallocation is discovered.
17 The Department of Revenue shall implement this amendatory
18Act of the 91st General Assembly so as to collect the tax on
19and after January 1, 2002.
20 As used in this Section, "municipal" and "municipality"
21means a city, village or incorporated town, including an
22incorporated 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. 96-939, eff. 6-24-10; 96-1057, eff. 7-14-10;
2697-333, eff. 8-12-11; 97-837, eff. 7-20-12.)

HB2649- 13 -LRB099 05877 HLH 30133 b
1 (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
2 Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
3Tax Act. The corporate authorities of a non-home rule
4municipality may impose a tax upon all persons engaged, in such
5municipality, in the business of making sales of service for
6expenditure on public infrastructure or for property tax relief
7or both as defined in Section 8-11-1.2 if approved by
8referendum as provided in Section 8-11-1.1, of the selling
9price of all tangible personal property transferred by such
10servicemen either in the form of tangible personal property or
11in the form of real estate as an incident to a sale of service.
12If the tax is approved by referendum on or after July 14, 2010
13(the effective date of Public Act 96-1057), the corporate
14authorities of a non-home rule municipality may, until December
1531, 2020, use the proceeds of the tax for expenditure on
16municipal operations, in addition to or in lieu of any
17expenditure on public infrastructure or for property tax
18relief. The tax imposed may not be more than 2% 1% and may be
19imposed only in 1/4% increments. It is the intent of the
20General Assembly that the rate of tax that may be imposed for
21municipal operations may not exceed 1%; therefore,
22notwithstanding any other provision of law, if the tax under
23this Section is imposed at a rate of more than 1%, then,
24beginning with the first disbursement to occur on or after the
25effective date of the increase, the total amount that may be

HB2649- 14 -LRB099 05877 HLH 30133 b
1used for municipal operations may not exceed the total amount
2of the proceeds disbursed to the municipality under this
3Section, Section 8-11-1.3, and Section 8-11-1.5, multiplied by
4a fraction having a numerator of 1 and a denominator of the
5rate of tax. The tax may not be imposed on the sale of food for
6human consumption that is to be consumed off the premises where
7it is sold (other than alcoholic beverages, soft drinks, and
8food that has been prepared for immediate consumption) and
9prescription and nonprescription medicines, drugs, medical
10appliances, and insulin, urine testing materials, syringes,
11and needles used by diabetics. The tax imposed by a
12municipality pursuant to this Section and all civil penalties
13that may be assessed as an incident thereof shall be collected
14and enforced by the State Department of Revenue. The
15certificate of registration which is issued by the Department
16to a retailer under the Retailers' Occupation Tax Act or under
17the Service Occupation Tax Act shall permit such registrant to
18engage in a business which is taxable under any ordinance or
19resolution enacted pursuant to this Section without
20registering separately with the Department under such
21ordinance or resolution or under this Section. The Department
22shall have full power to administer and enforce this Section;
23to collect all taxes and penalties due hereunder; to dispose of
24taxes and penalties so collected in the manner hereinafter
25provided, and to determine all rights to credit memoranda
26arising on account of the erroneous payment of tax or penalty

HB2649- 15 -LRB099 05877 HLH 30133 b
1hereunder. In the administration of, and compliance with, this
2Section the Department and persons who are subject to this
3Section shall have the same rights, remedies, privileges,
4immunities, powers and duties, and be subject to the same
5conditions, restrictions, limitations, penalties and
6definitions of terms, and employ the same modes of procedure,
7as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
8respect to all provisions therein other than the State rate of
9tax), 4 (except that the reference to the State shall be to the
10taxing municipality), 5, 7, 8 (except that the jurisdiction to
11which the tax shall be a debt to the extent indicated in that
12Section 8 shall be the taxing municipality), 9 (except as to
13the disposition of taxes and penalties collected, and except
14that the returned merchandise credit for this municipal tax may
15not be taken against any State tax), 10, 11, 12 (except the
16reference therein to Section 2b of the Retailers' Occupation
17Tax Act), 13 (except that any reference to the State shall mean
18the taxing municipality), the first paragraph of Section 15,
1916, 17, 18, 19 and 20 of the Service Occupation Tax Act and
20Section 3-7 of the Uniform Penalty and Interest Act, as fully
21as if those provisions were set forth herein.
22 No municipality may impose a tax under this Section unless
23the municipality also imposes a tax at the same rate under
24Section 8-11-1.3 of this Code.
25 Persons subject to any tax imposed pursuant to the
26authority granted in this Section may reimburse themselves for

HB2649- 16 -LRB099 05877 HLH 30133 b
1their serviceman's tax liability hereunder by separately
2stating such tax as an additional charge, which charge may be
3stated in combination, in a single amount, with State tax which
4servicemen are authorized to collect under the Service Use Tax
5Act, pursuant to such bracket schedules as the Department may
6prescribe.
7 Whenever the Department determines that a refund should be
8made under this Section to a claimant instead of issuing credit
9memorandum, the Department shall notify the State Comptroller,
10who shall cause the order to be drawn for the amount specified,
11and to the person named, in such notification from the
12Department. Such refund shall be paid by the State Treasurer
13out of the municipal retailers' occupation tax fund.
14 The Department shall forthwith pay over to the State
15Treasurer, ex officio, as trustee, all taxes and penalties
16collected hereunder.
17 As soon as possible after the first day of each month,
18beginning January 1, 2011, upon certification of the Department
19of Revenue, the Comptroller shall order transferred, and the
20Treasurer shall transfer, to the STAR Bonds Revenue Fund the
21local sales tax increment, as defined in the Innovation
22Development and Economy Act, collected under this Section
23during the second preceding calendar month for sales within a
24STAR bond district.
25 After the monthly transfer to the STAR Bonds Revenue Fund,
26on or before the 25th day of each calendar month, the

HB2649- 17 -LRB099 05877 HLH 30133 b
1Department shall prepare and certify to the Comptroller the
2disbursement of stated sums of money to named municipalities,
3the municipalities to be those from which suppliers and
4servicemen have paid taxes or penalties hereunder to the
5Department during the second preceding calendar month. The
6amount to be paid to each municipality shall be the amount (not
7including credit memoranda) collected hereunder during the
8second preceding calendar month by the Department, and not
9including an amount equal to the amount of refunds made during
10the second preceding calendar month by the Department on behalf
11of such municipality, and not including any amounts that are
12transferred to the STAR Bonds Revenue Fund. Within 10 days
13after receipt, by the Comptroller, of the disbursement
14certification to the municipalities and the General Revenue
15Fund, provided for in this Section to be given to the
16Comptroller by the Department, the Comptroller shall cause the
17orders to be drawn for the respective amounts in accordance
18with the directions contained in such certification.
19 The Department of Revenue shall implement this amendatory
20Act of the 91st General Assembly so as to collect the tax on
21and after January 1, 2002.
22 Nothing in this Section shall be construed to authorize a
23municipality to impose a tax upon the privilege of engaging in
24any business which under the constitution of the United States
25may not be made the subject of taxation by this State.
26 As used in this Section, "municipal" or "municipality"

HB2649- 18 -LRB099 05877 HLH 30133 b
1means or refers to a city, village or incorporated town,
2including an incorporated town which has superseded a civil
3township.
4 This Section shall be known and may be cited as the
5"Non-Home Rule Municipal Service Occupation Tax Act".
6(Source: P.A. 96-939, eff. 6-24-10; 96-1057, eff. 7-14-10;
797-333, eff. 8-12-11; 97-837, eff. 7-20-12.)
8 (65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5)
9 Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The
10corporate authorities of a non-home rule municipality may
11impose a tax upon the privilege of using, in such municipality,
12any item of tangible personal property which is purchased at
13retail from a retailer, and which is titled or registered with
14an agency of this State's government, based on the selling
15price of such tangible personal property, as "selling price" is
16defined in the Use Tax Act, for expenditure on public
17infrastructure or for property tax relief or both as defined in
18Section 8-11-1.2, if approved by referendum as provided in
19Section 8-11-1.1. If the tax is approved by referendum on or
20after the effective date of this amendatory Act of the 96th
21General Assembly, the corporate authorities of a non-home rule
22municipality may, until December 31, 2020, use the proceeds of
23the tax for expenditure on municipal operations, in addition to
24or in lieu of any expenditure on public infrastructure or for
25property tax relief. The tax imposed may not be more than 2% 1%

HB2649- 19 -LRB099 05877 HLH 30133 b
1and may be imposed only in 1/4% increments. It is the intent of
2the General Assembly that the rate of tax that may be imposed
3for municipal operations may not exceed 1%; therefore,
4notwithstanding any other provision of law, if the tax under
5this Section is imposed at a rate of more than 1%, then,
6beginning with the first disbursement to occur on or after the
7effective date of the increase, the total amount that may be
8used for municipal operations may not exceed the total amount
9of the proceeds disbursed to the municipality under this
10Section, Section 8-11-1.3, and Section 8-11-1.4, multiplied by
11a fraction having a numerator of 1 and a denominator of the
12rate of tax. Such tax shall be collected from persons whose
13Illinois address for title or registration purposes is given as
14being in such municipality. Such tax shall be collected by the
15municipality imposing such tax. A non-home rule municipality
16may not impose and collect the tax prior to January 1, 2002.
17 This Section shall be known and may be cited as the
18"Non-Home Rule Municipal Use Tax Act".
19(Source: P.A. 96-1057, eff. 7-14-10; 97-837, eff. 7-20-12.)
20 Section 99. Effective date. This Act takes effect upon
21becoming law.
feedback