65 ILCS 5/8-11-21
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 8 - Finance

Sec. 8-11-21. Agreements to share or rebate occupation taxes.(a) On and after  June 1, 2004, the corporate authorities of a municipality shall  not enter into any agreement to share or rebate  any  portion of retailers' occupation taxes generated by retail sales of tangible  personal  property if: (1) the tax on those retail sales, absent the agreement,  would have been paid to another unit of local government; and (2) the  retailer maintains, within that other unit of local government, a  retail location from which the tangible personal property is delivered to  purchasers, or a warehouse from which the tangible personal property is  delivered to purchasers. Any unit of local government  denied retailers' occupation tax revenue because of an agreement that violates  this Section may file an action in circuit court against only the municipality.  Any agreement entered into prior to  June 1,  2004 is not affected by this amendatory Act of the 93rd General Assembly.  Any unit of  local government that prevails in the circuit court action is entitled to  damages in  the amount of the tax revenue it was denied as a result of the agreement,  statutory interest, costs, reasonable attorney's fees, and an amount equal to  50% of the  tax.(b) On and after the effective date of this amendatory Act of the 93rd  General Assembly, a home rule unit shall not enter into any agreement  prohibited  by this Section. This Section is a denial and limitation of home rule powers  and  functions under subsection (g) of Section 6 of Article VII of the Illinois  Constitution.(c) Any municipality that enters into an agreement to share or rebate  any  portion of retailers' occupation taxes generated by retail sales of tangible  personal  property must complete and submit a report by electronic filing to the Department of Revenue within 30 days after the execution of the agreement. Any municipality that has entered into such an agreement before the effective date of this amendatory Act of the 97th General Assembly that has not been terminated or expired as of the effective date of this amendatory Act of the 97th General Assembly shall submit a report with respect to the agreements within 90 days after the effective date of this amendatory Act of the 97th General Assembly.Any agreement entered into on or after the effective date of this amendatory Act of the 98th General Assembly is not valid until the municipality entering into the agreement complies with the requirements set forth in this subsection.  Any municipality that fails to comply with the requirements set forth in this subsection within the 30 days after the execution of the agreement shall be responsible for paying to the Department of Revenue a delinquency penalty of $20 per day for each day the municipality fails to submit a report by electronic filing to the Department of Revenue.  A municipality that has previously failed to report an agreement in effect on the effective date of this subsection will begin to accrue a delinquency penalty for each day the agreement remains unreported beginning on the effective date of this subsection. The Department of Revenue may adopt rules to implement and administer these penalties.(d) The report described in this Section shall be made on a form to be supplied by the Department of Revenue and shall contain the following:(1) the names of the municipality and the business     entering into the agreement;(2) the location or locations of the business within     the municipality;(3) a statement, to be answered in the affirmative or     negative, as to whether or not the company maintains additional places of business in the State other than those described pursuant to paragraph (2);(4) the terms of the agreement, including (i) the     manner in which the amount of any retailers' occupation tax to be shared, rebated, or refunded is to be determined each year for the duration of the agreement, (ii) the duration of the agreement, and (iii) the name of any business who is not a party to the agreement but who directly or indirectly receives a share, refund, or rebate of the retailers' occupation tax; and(5) a copy of the agreement to share or rebate any     portion of retailers' occupation taxes generated by retail sales of tangible personal property.An updated report must be filed by the municipality within 30 days after the execution of any amendment made to an agreement.Reports filed  with the Department pursuant to this Section shall not constitute tax returns.(e) The Department and the municipality shall redact the sales figures, the amount of sales tax collected, and the amount of sales tax rebated prior to disclosure of information contained in a report required by this Section or the Freedom of Information Act.  The information redacted shall be exempt from the provisions of the Freedom of Information Act.(f) All reports, except the copy of the agreement, required to be filed with the Department of Revenue pursuant to this Section shall be posted on the Department's website within 6 months after the effective date of this amendatory Act of the 97th General Assembly. The website shall be updated on a monthly basis to include newly received reports. (Source: P.A. 97-976, eff. 1-1-13; 98-463, eff. 8-16-13; 98-1098, eff. 8-26-14.)