65 ILCS 5/8-11-1
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 8 - Finance

 (from Ch. 24, par. 8-11-1)Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax Act. The  corporate authorities of a home rule municipality may  impose a tax upon all persons engaged in the business of selling tangible  personal property, other than an item of tangible personal property titled  or registered with an agency of this State's government, at retail in the  municipality on the gross receipts from these sales made in  the course of such business.  If imposed, the tax shall only  be imposed in 1/4% increments. On and after September 1, 1991, this  additional tax may not be imposed on tangible personal property taxed at the 1% rate under the Retailers' Occupation Tax Act. Beginning December 1, 2019, this tax is not imposed on sales of aviation fuel unless the tax revenue is expended for airport-related purposes. If a municipality does not have an airport-related purpose to which it dedicates aviation fuel tax revenue, then aviation fuel is excluded from the tax.  Each municipality must comply with the certification requirements for airport-related purposes under Section 2-22 of the Retailers' Occupation Tax Act.  For purposes of this Section, "airport-related purposes" has the meaning ascribed in Section 6z-20.2 of the State Finance Act.  This exclusion for aviation fuel only applies for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the municipality. The changes made to this Section by this amendatory Act of the 101st General Assembly are a denial and limitation of home rule powers and functions under subsection (g) of Section 6 of Article VII of the Illinois Constitution. The tax imposed  by a home rule municipality under this Section and all  civil penalties that may be assessed as an incident of the tax shall  be collected and enforced by the State Department of  Revenue.  The certificate of registration that is issued by  the Department to a retailer under the Retailers' Occupation Tax Act  shall permit the retailer to engage in a business that 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 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, and except that the retailer's discount is not allowed for taxes paid on aviation fuel that are subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a,  5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 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 herein.No tax may be imposed by a home rule municipality under this Section  unless the municipality also imposes a tax at the same rate under Section  8-11-5 of this 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 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 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 the notification from the Department. The refund shall be paid by the  State Treasurer out of the home rule municipal retailers' occupation tax fund or the Local Government Aviation Trust Fund, as appropriate.Except as otherwise provided in this paragraph, the Department shall immediately pay over to the State  Treasurer, ex officio, as trustee, all taxes and penalties collected  hereunder for deposit into the Home Rule Municipal Retailers' Occupation Tax Fund.   Taxes and penalties collected on aviation fuel sold on or after December 1, 2019, shall be immediately paid over by the Department to the State Treasurer, ex officio, as trustee, for deposit into the Local Government Aviation Trust Fund. The Department shall only pay moneys into the Local Government Aviation Trust Fund under this Section for so long as the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.As soon as possible after the first day of each month, beginning January 1, 2011, upon certification of the Department of Revenue, the Comptroller shall order transferred, and the Treasurer shall transfer, to the STAR Bonds Revenue Fund the local sales tax increment, as defined in the Innovation Development and Economy Act, collected under this Section during the second preceding calendar month for sales within a STAR bond district.After the monthly transfer to the STAR Bonds Revenue Fund, 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 retailers 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 and not including taxes and penalties collected on aviation fuel sold on or after December 1, 2019) collected hereunder during the second preceding calendar month  by the Department plus an amount the Department 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 municipality, 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 municipality, and not including any amounts that are transferred to the STAR Bonds Revenue Fund, 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 municipalities, 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, the Comptroller shall cause the orders to be  drawn for the respective amounts in accordance with the directions  contained in the certification.In addition to the disbursement required by the preceding paragraph and  in order to mitigate delays caused by distribution procedures, an  allocation shall, if requested, be made within 10 days after January 14,  1991, and in November of 1991 and each year thereafter, to each  municipality that received more than $500,000 during the preceding fiscal  year, (July 1 through June 30) whether collected by the municipality or  disbursed by the Department as required by this Section. Within 10 days  after January 14, 1991, participating municipalities shall notify the  Department in writing of their intent to participate.  In addition, for the  initial distribution, participating municipalities shall certify to the  Department the amounts collected by the municipality for each month under  its home rule occupation and service occupation tax during the period July  1, 1989 through June 30, 1990.  The allocation within 10 days after January  14, 1991, shall be in an amount equal to the monthly average of these  amounts, excluding the 2 months of highest receipts. The monthly average  for the period of July 1, 1990 through June 30, 1991 will be determined as  follows:  the amounts collected by the municipality under its home rule  occupation and service occupation tax during the period of July 1, 1990  through September 30, 1990, plus amounts collected by the Department and  paid to such municipality through June 30, 1991, excluding the 2 months of  highest receipts.  The monthly average for each subsequent period of July 1  through June 30 shall be an amount equal to the monthly distribution made  to each such municipality under the preceding paragraph during this period,  excluding the 2 months of highest receipts.  The distribution made in  November 1991  and each year thereafter under this paragraph and the  preceding paragraph shall be reduced by the amount allocated and disbursed  under this paragraph in the preceding period of July 1 through June 30.  The Department shall prepare and certify to the Comptroller for  disbursement the allocations made in accordance with this paragraph.For the purpose of determining the local governmental unit whose tax  is applicable, a retail sale by a producer of coal or other mineral  mined in Illinois is a sale at retail at the place where the coal or  other mineral mined in Illinois is extracted from the earth.  This  paragraph does not apply to coal or other mineral when it is delivered  or shipped by the seller to the purchaser at a point outside Illinois so  that the sale is exempt under the United States Constitution as a sale in  interstate or foreign commerce.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 a tax hereunder 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 following the  adoption and filing. Beginning January 1, 1992, an ordinance or resolution  imposing or discontinuing the tax hereunder 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 July, whereupon the Department  shall proceed to administer and enforce this Section as of the first day of  October next following such adoption and filing. Beginning January 1, 1993,  an ordinance or resolution imposing or discontinuing the tax hereunder 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  October, whereupon the Department shall proceed to administer and enforce  this Section as of the first day of January next following the  adoption and filing.  However, a municipality located in a county with a population in excess of  3,000,000 that elected to become a home rule unit at the general primary  election in  1994 may adopt an ordinance or resolution imposing the tax under this Section  and file a certified copy of the ordinance or resolution with the Department on  or before July 1, 1994. The Department shall then proceed to administer and  enforce this Section as of October 1, 1994.   Beginning April 1, 1998, an ordinance or  resolution imposing or  discontinuing the tax hereunder or effecting a change in the rate thereof shall  either (i) be adopted and a certified copy thereof filed with the Department on  or  before the first day of April, whereupon the Department 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 on or before the first day of October, whereupon the  Department shall proceed to administer and enforce this Section as of the first  day of January next following the adoption and filing.When certifying the amount of a monthly disbursement to a municipality  under this Section, the Department shall increase or decrease the amount by  an amount necessary to offset any misallocation of previous disbursements.  The offset amount shall be the amount erroneously disbursed  within the previous 6 months from the time a misallocation is discovered.Any unobligated balance remaining in the Municipal Retailers' Occupation  Tax Fund on December 31, 1989, which fund was abolished by Public Act  85-1135, and all receipts of municipal tax as a result of audits of  liability periods prior to January 1, 1990, shall be paid into the Local  Government Tax Fund for distribution as provided by this Section prior to  the enactment of Public Act 85-1135. All receipts of municipal tax as a  result of an assessment not arising from an audit, for liability periods  prior to January 1, 1990, shall be paid into the Local Government Tax Fund  for distribution before July 1, 1990, as provided by this Section prior to  the enactment of Public Act 85-1135; and on and after July 1,  1990, all such receipts shall be distributed as provided in Section  6z-18 of the State Finance Act.As used in this Section, "municipal" and "municipality" means a city,  village or incorporated town, including an incorporated town that has  superseded a civil township.This Section shall be known and may be cited as the Home Rule Municipal  Retailers' Occupation Tax Act.  (Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18; 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19.)