Bill Text: IL SB3512 | 2019-2020 | 101st General Assembly | Introduced

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Bill Title: Amends the Illinois Municipal Code. Provides that, in addition to any other tax that may be imposed, a municipality may also impose, by ordinance, a tax upon all persons engaged in the municipality in the business of acting as a resale facilitator. Provides that the tax may be imposed, in one percent increments, at a rate not to exceed 5% of the selling price of all tickets or other licenses resold by or through the resale facilitator for amusements taking place within the municipality. Provides that the tax does not apply to: (i) the original sale of a ticket or license by the owner, operator, or manager of an amusement, either directly or through a third party; or (ii) resales by or to ticket brokers registered with the Secretary of State under the Ticket Sale and Resale Act. Defines terms. Amends the State Finance Act to create the Municipal Ticket and License Reselling Tax Fund.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2021-01-13 - Session Sine Die [SB3512 Detail]

Download: Illinois-2019-SB3512-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB3512 Introduced 2/13/2020, by Sen. Iris Y. Martinez SYNOPSIS AS INTRODUCED:
30 ILCS 105/5.930 new
65 ILCS 5/11-42-1.5 new
Amends the Illinois Municipal Code. Provides that, in addition to any other tax that may be imposed, a municipality may also impose, by ordinance, a tax upon all persons engaged in the municipality in the business of acting as a resale facilitator. Provides that the tax may be imposed, in one percent increments, at a rate not to exceed 5% of the selling price of all tickets or other licenses resold by or through the resale facilitator for amusements taking place within the municipality. Provides that the tax does not apply to: (i) the original sale of a ticket or license by the owner, operator, or manager of an amusement, either directly or through a third party; or (ii) resales by or to ticket brokers registered with the Secretary of State under the Ticket Sale and Resale Act. Defines terms. Amends the State Finance Act to create the Municipal Ticket and License Reselling Tax Fund.
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FISCAL NOTE ACT MAY APPLY HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY
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 State Finance Act is amended by adding
Section 5.930 as follows:
(30 ILCS 105/5.930 new)
Sec. 5.930. The Municipal Ticket and License Reselling Tax
Fund.
Section 10. The Illinois Municipal Code is amended by
adding Section 11-42-1.5 as follows:
(65 ILCS 5/11-42-1.5 new)
Sec. 11-42-1.5. Municipal Ticket and License Reselling Tax
Law.
(a) As used in this Section:
"License" means a ticket or other license granting the
privilege to enter, to witness, to view, or to participate in
an amusement or the opportunity to obtain the privilege to
enter, to witness, to view, or to participate in an amusement.
"License" includes, but is not limited to, a permanent seat
license.
"Resale" means the resale of a ticket or other license to

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an amusement after the ticket or other license has been sold by
the owner, manager, or operator of the amusement, or by the
owner, manager, or operator of the place where the amusement is
being held, to an independent and unrelated third party.
"Resale facilitator" means a person engaged in the business
of resale on behalf of the owner of the ticket or other license
or assisting the owner in resale of the owner's ticket or other
license, whether or not the ticket or other license is resold
by bidding, consignment, or otherwise and whether or not the
ticket or other license is resold in person, at a site on the
Internet, or otherwise. "Resale facilitator" includes, but is
not limited to, an auctioneer, a ticket broker, a seller of
tickets or other licenses for amusements, or an Internet
auction listing service. "Resale facilitator" does not include
a person who advertises the availability of a ticket or other
license for resale without participating in the resale
transaction.
"Reseller" means a person who resells a ticket or other
license to an amusement for consideration, whether or not the
ticket or other license is resold by bidding, consignment, or
otherwise and whether or not the ticket or other license is
resold in person, at a site on the Internet, or otherwise.
"Reseller" includes, but is not limited to, ticket brokers.
"Selling price" means the total consideration received
from the consumer and collected by the reseller or resale
facilitator for the purchase of a ticket or license, including

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any service fees or other charges. "Selling price" includes any
local amusement tax on the original sale of the ticket or
license that is included in the consideration received, but
excludes any federal, State, or local taxes imposed on such
resale and any separately stated and optional charges for
services or property.
"Ticket" means the privilege to enter, witness, view, or
participate in an amusement, whether or not expressed in a
tangible form.
(b) Notwithstanding any other provision of law, in addition
to any other tax that may be imposed, a municipality may also
impose, by ordinance, a tax upon all persons engaged in the
municipality in the business of acting as a resale facilitator.
The tax may be imposed, in one percent increments, at a rate
not to exceed 5% of the selling price of all tickets or other
licenses resold by or through the resale facilitator for
amusements taking place within the municipality. The tax may
not be imposed under this Section on: (i) the original sale of
a ticket or license by the owner, operator, or manager of an
amusement, either directly or through a third party; or (ii)
resales to ticket brokers or resales by ticket brokers to
ticket brokers, when registered with the Secretary of State
under the Ticket Sale and Resale Act.
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

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as an additional charge, which charge may be stated in
combination, in a single amount, with other applicable taxes,
pursuant to such bracket schedules as the Department of Revenue
may prescribe.
A tax imposed pursuant to this Section, and all civil
penalties that may be assessed as an incident thereof, shall be
administered, collected, and enforced by the Department of
Revenue in the same manner as the tax imposed under the
Retailers' Occupation Tax Act, as now or hereafter amended,
insofar as may be practicable; except that in the event of a
conflict with the provisions of this Section, this Section
shall control. The Department of Revenue shall have full power
to: administer and enforce this Section; collect all taxes and
penalties due hereunder; dispose of taxes and penalties so
collected in the manner hereinafter provided; and determine all
rights to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder.
Whenever the Department of Revenue determines that a refund
shall 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. The refund shall
be paid by the State Treasurer out of the Municipal Ticket and
License Reselling Tax Fund.
The Department of Revenue shall immediately pay over to the

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State Treasurer, ex officio, as trustee, all taxes and
penalties collected under this Section. Those taxes and
penalties shall be deposited into the Municipal Ticket and
License Reselling Tax Fund, a trust fund created in the State
treasury. Moneys in the Municipal Ticket and License Reselling
Tax Fund shall be used to make payments to municipalities and
for the payment of refunds under this Section.
On or before the 25th day of each calendar month, the
Department of Revenue shall prepare and certify to the State
Comptroller the disbursement of stated sums of money to named
municipalities for which taxpayers have paid taxes or penalties
hereunder to the Department of Revenue 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 resellers within
the municipality during the second preceding calendar month by
the Department of Revenue, plus an amount the Department of
Revenue determines is necessary to offset amounts that were
erroneously paid to a different municipality, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department of Revenue on behalf
of the municipality, and not including any amount that the
Department of Revenue determines is necessary to offset any
amounts that were payable to a different municipality but were
erroneously paid to the municipality, less 1.5% of the
remainder, which the Comptroller shall transfer into the Tax

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Compliance and Administration Fund. The Department of Revenue,
at the time of each monthly disbursement, 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 of Revenue,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in the certification.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing the
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 of Revenue on or before the
first day of April, whereupon the Department of Revenue 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
of Revenue on or before the first day of October, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section as of the first day of January next following the

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adoption and filing.
(c) This Section shall be known and may be cited as the
Municipal Ticket and License Reselling Tax Law.