65 ILCS 5/8-11-6
2021 Illinois Compiled Statutes|Chapter 65 - MUNICIPALITIES|65 ILCS 5/ - Illinois Municipal Code.|Article 8 - Finance

 (from Ch. 24, par. 8-11-6)Sec. 8-11-6. Home Rule Municipal Use Tax Act.(a) The corporate authorities of a home rule municipality may  impose a tax upon the privilege of using, in such municipality, any item of  tangible personal property which is purchased at retail from a retailer, and  which is titled or registered at a location within the corporate limits of  such home rule municipality with an agency of this State's government, at a  rate which is an increment of 1/4% and based on the selling price of such  tangible personal property, as "selling price" is defined in the Use Tax  Act. In home rule municipalities with less than 2,000,000 inhabitants, the  tax shall be collected by the municipality imposing the tax from persons  whose Illinois address for titling or registration purposes is given as  being in such municipality.(b) In home rule municipalities with 2,000,000 or more inhabitants, the  corporate authorities of the municipality may additionally impose a tax  beginning July 1, 1991 upon the privilege of using in the  municipality, any item of tangible personal property, other than tangible  personal property titled or registered with an agency of the State's  government, that is purchased at retail from a retailer located outside the  corporate limits of the municipality, at a rate that is an increment of  1/4% not to exceed 1% and based on the selling price of the tangible  personal property, as "selling price" is defined in the Use Tax Act.  Such  tax shall be collected from the purchaser either by the municipality imposing  such tax or by the Department of Revenue pursuant to an agreement between the  Department and the municipality.To prevent multiple home rule taxation, the use in a home rule  municipality of tangible personal property that is acquired outside the  municipality and caused to be brought into the municipality by a person who  has already paid a home rule municipal tax in another municipality in  respect to the sale, purchase, or use of that property, shall be exempt to  the extent of the amount of the tax properly due and paid in the other home  rule municipality.(c) If a municipality having 2,000,000 or more inhabitants imposes the  tax authorized by subsection (a),  then the tax shall be collected by the Illinois Department of Revenue when  the property is purchased at retail from a retailer in the county in which  the home rule municipality imposing the tax is located, and in all  contiguous counties.  The tax shall be remitted to the State, or an  exemption determination must be obtained from the Department before the  title or certificate of registration for the property may be issued.  The  tax or proof of exemption may be transmitted to the Department by way of  the State agency with which, or State officer with whom, the tangible  personal property must be titled or registered if the Department and that  agency or State officer determine that this procedure will expedite the  processing of applications for title or registration.The Department shall have full power to administer and enforce this  Section to collect all taxes, penalties and interest due hereunder, to  dispose of taxes, penalties and interest so collected in the manner  hereinafter provided, and determine all rights to credit memoranda or  refunds arising on account of the erroneous payment of tax, penalty or  interest 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 (except the definition of "retailer maintaining a  place of business in this State"), 3 (except provisions pertaining to the  State rate of tax, and except provisions concerning collection or refunding  of the tax by retailers), 4, 11, 12, 12a, 14, 15, 19, 20, 21 and 22 of the Use Tax Act, which are not inconsistent with  this Section, as fully as if provisions contained in those Sections of the  Use Tax Act were set forth herein.Whenever the Department determines that a refund shall 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 home rule municipal retailers' occupation tax fund.The Department shall forthwith pay over to the State Treasurer, ex  officio, as trustee, all taxes, penalties and interest collected hereunder.   On or before the 25th day of each calendar month, the Department shall  prepare and certify to the State Comptroller the disbursement of stated  sums of money to named municipalities, the municipality in each instance to  be that municipality from which the Department during the second preceding  calendar month, collected municipal use tax from any person whose Illinois  address for titling or registration purposes is given as being in such  municipality.  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 2% of the balance, which sum shall be retained by the State Treasurer to cover the costs incurred by the Department in administering and enforcing the provisions of this Section.  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, which shall be transferred into the Tax Compliance and Administration Fund.  Within 10 days  after receipt by the State Comptroller of the disbursement certification to  the municipalities provided for in this Section to be given to the State  Comptroller by the Department,  the State Comptroller shall cause the orders to be drawn for the respective  amounts in accordance with the directions contained in that certification.Any ordinance imposing or discontinuing any tax to be collected and  enforced by the Department under this Section shall  be adopted and a certified copy thereof filed with the Department on or  before October 1, whereupon the Department of Revenue shall proceed to  administer and enforce this Section on behalf of the municipalities as of  January 1 next following such adoption and filing.  Beginning April 1, 1998,  any ordinance imposing or discontinuing any tax to be collected and enforced  by the Department under this Section shall either (i) be adopted and a  certified copy thereof filed with the Department on or before April 1,  whereupon the Department of Revenue shall proceed to administer and enforce  this Section on behalf of the municipalities as of July 1 next following the  adoption and filing; or (ii) be adopted and a certified copy thereof filed  with the Department on or before October 1, whereupon the Department of  Revenue shall proceed to administer and enforce this Section on behalf of  the municipalities as of January 1 next following the adoption and filing.Nothing in this subsection (c) shall prevent a home rule municipality  from collecting the tax pursuant to subsection (a) in any situation where  such tax is not collected by the Department of Revenue under this subsection  (c).(d) 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.(e) 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.(f) This Section shall be known and may be cited as the Home Rule  Municipal Use Tax Act.  (Source: P.A. 98-1049, eff. 8-25-14.)