65 ILCS 5/8-11-1.4
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 8 - Finance

 (from Ch. 24, par. 8-11-1.4)Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation Tax Act. The  corporate authorities of a non-home rule municipality may impose a  tax upon all persons engaged, in such municipality, in the business of  making sales of service for expenditure on  public infrastructure or for property tax relief or both as defined in  Section 8-11-1.2 if approved by  referendum as provided in Section 8-11-1.1, of the selling price of  all tangible personal property transferred by such servicemen either in  the form of tangible personal property or in the form of real estate as  an incident to a sale of service.  If the tax is approved by referendum on or after July 14, 2010 (the effective date of Public Act 96-1057), the corporate authorities of a non-home rule municipality may, until December 31, 2020, use the proceeds of the tax for expenditure on municipal operations, in addition to or in lieu of any expenditure on public infrastructure or for property tax relief. The tax imposed may not be more than 1% and may be imposed only in  1/4% increments. The tax may not be imposed on tangible personal property taxed at the 1% rate under the Service 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 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 Service Occupation Tax Act shall permit  such registrant 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 1a-1, 2, 2a, 3 through 3-50 (in respect to  all provisions therein other than the State rate of tax), 4 (except that  the reference to the State shall be to the taxing municipality), 5, 7, 8  (except that the jurisdiction to which the tax shall be a debt to the  extent indicated in that Section 8 shall be the taxing municipality), 9  (except as to the disposition of taxes and penalties collected, and except  that the returned merchandise credit for this municipal tax may not be  taken against any State tax, 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), 10, 11, 12 (except the reference therein to  Section 2b of the Retailers' Occupation Tax Act), 13 (except that any  reference to the State shall mean the taxing municipality), the first  paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service 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 municipality may impose a tax under this Section unless the municipality  also imposes a tax at the same rate under Section 8-11-1.3 of this Code.Persons subject to any tax imposed pursuant to the authority granted  in this Section may reimburse themselves for their serviceman's 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 servicemen are authorized to collect under the  Service 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 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 retailers' occupation tax fund or the Local Government Aviation Trust Fund, as appropriate.Except as otherwise provided in this paragraph, the Department shall forthwith pay over to the State Treasurer,  ex officio, as trustee, all taxes and penalties collected hereunder for deposit into the 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 municipality.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 suppliers and servicemen 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, 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 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, the General Revenue Fund, 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 such  certification.The Department of Revenue shall implement Public Act 91-649 so as to collect the tax on and after January 1, 2002.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.As used in this Section, "municipal" or "municipality" means or refers to  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 "Non-Home Rule Municipal  Service 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.)