65 ILCS 5/8-11-7
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 8 - Finance

 (from Ch. 24, par. 8-11-7)Sec. 8-11-7.         The corporate authorities of a municipality may impose  a tax upon all persons engaged in the business of renting automobiles in  the municipality at the rate of not to exceed 1% of the gross receipts from  such business.  The tax imposed by a municipality pursuant to this Section  and all civil penalties that may be assessed as an incident thereof shall  be collected and enforced by the State Department of Revenue. The certificate  of registration which is issued by the Department to a retailer under the  Retailers' Occupation Tax Act or under the Automobile Renting Occupation and Use Tax  Act shall permit such  person to engage in a  business which is taxable under any ordinance or resolution enacted pursuant  to this Section without registering separately with the Department under  such ordinance or resolution or under this Section.  The Department 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  hereunder.  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 2 and 3 (in respect to all provisions therein other than the  State rate of tax; and with relation to the provisions of the "Retailers'  Occupation Tax" referred to therein, except as to the disposition of taxes  and penalties collected, and except for the provision allowing retailers  a deduction from the tax to cover certain costs, and except that credit  memoranda issued hereunder may not be used to discharge any State tax  liability) of the Automobile Renting Occupation and Use Tax Act, as fully  as if those provisions were set forth herein.Persons subject to any tax imposed pursuant to the authority granted in  this Section may reimburse themselves for their tax liability hereunder  by separately stating such tax as an additional charge, which charge may  be stated in combination, in a single amount, with State tax which sellers  are required to collect under the Automobile Renting Occupation and  Use Tax Act pursuant to such bracket schedules as the Department may  prescribe.Whenever the Department determines that a refund should be made under this  Section to a claimant instead of issuing a credit memorandum, the Department  shall notify the State Comptroller, who shall cause the order to be drawn  for the amount specified, and to the person named, in such notification  from the Department.  Such refund shall be paid by the State Treasurer out  of the municipal automobile renting tax fund.The Department shall forthwith pay over to the State Treasurer, ex-officio,  as trustee, all taxes and penalties collected hereunder.  On or before the  25th day of each calendar month, the Department shall prepare and certify  to the Comptroller the disbursement of stated sums of money to named  municipalities, the municipalities to be those from which rentors have paid  taxes or penalties hereunder to the Department during the second preceding  calendar month.  The amount to be paid to each municipality shall be the  amount (not including credit memoranda) collected hereunder during the  second preceding calendar month by the Department, 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, less 1.6%  of such balance, which sum shall be retained by the State Treasurer to  cover the costs incurred by the Department in administering and enforcing  this Section as provided herein.  The Department at the time of each  monthly disbursement to the municipalities shall prepare and certify to the  Comptroller the amount, so retained by the State Treasurer, to be paid into  the General Revenue Fund of the State Treasury.  Within 10 days after  receipt, by the Comptroller, of the disbursement certification to the  municipalities and the General Revenue 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 such 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 a tax hereunder or effecting a change  in the rate thereof shall be effective on the first day of the calendar  month next following publication as provided in Section 1-2-4.  The corporate  authorities of any municipality which levies a tax authorized by this Section  shall transmit to the Department of Revenue on or not later than 5 days  after publication a certified copy of the ordinance or resolution imposing  such tax whereupon the Department of Revenue shall proceed to administer  and enforce this Section on behalf of such municipality as of the effective  date of the ordinance or resolution.  Upon a change in rate of a tax levied  hereunder, or upon the discontinuance of the tax, the corporate authorities  of the municipality shall on or not later than 5 days after publication  of the ordinance or  resolution discontinuing the tax or effecting a change  in rate transmit to the Department of Revenue a certified copy of the  ordinance or resolution effecting such change or discontinuance.The Department of Revenue must upon the request of the municipal clerk,  city council or village board of trustees submit to a city, village or  incorporated town a list of those persons who are registered with the  Department to pay automobile renting occupation tax within that  governmental unit.  This list shall contain only the names of persons who  have paid the tax and not the amount of tax paid by such person.As used in this Section, "municipal" and "municipality" means a city, village  or incorporated town, including an incorporated town which has superseded  a civil township.This Section shall be known and may be cited as the "Municipal Automobile  Renting Occupation Tax Act".    (Source: P.A. 86-1475.)