Bill Text: IL HB4135 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Creates the Library District Cannabis Retailers' Occupation Tax Law in the Public Library District Act of 1991. Provides that, on and after January 1, 2021, the corporate authorities of a library district may, by ordinance, impose a 1% 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 library district on the gross receipts from these sales made in the course of that business. Amends the County Cannabis Retailers' Occupation Tax Law of the Counties Code. Reduces the tax rate the corporate authorities of a county may impose by 1% within a library district if the library district imposes a Library District Cannabis Retailers' Occupation Tax. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-06-23 - Rule 19(b) / Re-referred to Rules Committee [HB4135 Detail]

Download: Illinois-2019-HB4135-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 HB4135 Introduced , by Rep. Daniel Didech SYNOPSIS AS INTRODUCED:
55 ILCS 5/5-1006.8
75 ILCS 16/35-45 new
Creates the Library District Cannabis Retailers' Occupation Tax Law in the Public Library District Act of 1991. Provides that, on and after January 1, 2021, the corporate authorities of a library district may, by ordinance, impose a 1% 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 library district on the gross receipts from these sales made in the course of that business. Amends the County Cannabis Retailers' Occupation Tax Law of the Counties Code. Reduces the tax rate the corporate authorities of a county may impose by 1% within a library district if the library district imposes a Library District Cannabis Retailers' Occupation Tax. Effective immediately.
LRB101 14786 AWJ 63752 b
FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
A BILL FOR
HB4135 LRB101 14786 AWJ 63752 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. On and after January 1, 2020,
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 Pilot Program Act, at
retail in the county on the gross receipts from these sales
made in the course of that business. 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 in the county;
(iii) 2.75% of the gross receipts of sales made in
unincorporated areas of the county where a 1% tax is imposed by
a library district pursuant to the Library District Cannabis

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Retailers' Occupation Tax Law; and (iv) 2% of the gross
receipts of sales made in a municipality located in the county
where a 1% tax is imposed by a library district pursuant to the
Library District Cannabis Retailers' Occupation Tax Law. 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),
2c, 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, 8, 8, 9, 10, 11, 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

HB4135 - 3 - LRB101 14786 AWJ 63752 b
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 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 Consumer Excise 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 Consumer Excise 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

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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 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 shall be adopted and a certified copy thereof filed
with the Department on or before the first day of June,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of September next

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following the adoption and filing.
(Source: P.A. 101-27, eff. 6-25-19; 101-363, eff. 8-9-19.)
Section 10. The Public Library District Act of 1991 is
amended by adding Section 35-45 as follows:
(75 ILCS 16/35-45 new)
Sec. 35-45. Library District Cannabis Retailers'
Occupation Tax Law.
(a) This Section may be referred to as the Library District
Cannabis Retailers' Occupation Tax Law. On and after January 1,
2021, the corporate authorities of a library district 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 library district on the gross receipts from these
sales made in the course of that business. If imposed, the tax
imposed shall be 1% of the gross receipts of sales made in the
library district. 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

HB4135 - 6 - LRB101 14786 AWJ 63752 b
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),
2c, 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, 8, 8, 9, 10, 11, 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 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

HB4135 - 7 - LRB101 14786 AWJ 63752 b
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 Consumer Excise 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 Consumer Excise Tax Trust Fund to library districts
from which retailers have paid taxes or penalties under this
Section during the second preceding calendar month. The amount
to be paid to each library district shall be the amount (not
including credit memoranda) collected under this Section from
sales made in the library district 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
library district, 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 library district, 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 library districts, shall prepare

HB4135 - 8 - LRB101 14786 AWJ 63752 b
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 shall be adopted and a certified copy thereof filed
with the Department on or before the first day of September,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of January next
following the adoption and filing.
Section 99. Effective date. This Act takes effect upon
becoming law.