2023 Illinois Compiled Statutes › Chapter 35 - REVENUE › 35 ILCS 720/ - Local Tax Collection Act.

(35 ILCS 720/0.01) (from Ch. 120, par. 1900)
Sec. 0.01. 
		Short title. 
		This Act may be cited as the
Local Tax Collection Act.
(Source: P.A. 86-1324.)
(35 ILCS 720/1) (from Ch. 120, par. 1901)
Sec. 1. 
(a) The Department of Revenue and any unit of local government
may agree to the Department's collecting, and transmitting back to the unit of local government, any tax lawfully imposed by that unit of local government,
the subject of which is similar to that of a tax imposed by the State and
collected by the Department of Revenue, unless the General Assembly has
specifically required a different method of collection for such tax.
However, the Department may not enter into a contract with any unit of local government pursuant to this Act for the collection of any tax based on the
sale or use of tangible personal property generally, not including taxes
based only on the sale or use of specifically limited kinds of tangible
personal property, unless the
 ordinance adopted by the unit of local government imposes a sales or use tax which is
substantively identical to and which contains the same exemptions as the
taxes imposed by the unit of local government's ordinances authorized by
the Home Rule or Non-Home Rule Municipal or County Retailers' Occupation Tax Act, the Home Rule or Non-Home Rule Municipal or
County Use Tax, or any other Retailers' Occupation Tax Act or Law that is administered by the Department of Revenue, as interpreted by the Department through its regulations as
those Acts and as those regulations may from time to time be amended.
(b) Regarding the collection of a tax pursuant to this Section, the
Department and any person subject to a tax collected by the Department
pursuant to this Section shall, as much as practicable, have the same
rights, remedies, privileges, immunities, powers and duties, and be subject
to the same conditions, restrictions, limitations,
penalties, definitions of terms and procedures, as those set forth in the
Act imposing the State tax, the subject of which is similar to the tax being
collected by the Department pursuant to this Section. The Department and
unit of local government shall specifically agree in writing to such rights,
remedies, privileges, immunities, powers, duties, conditions, restrictions,
limitations, penalties, definitions of terms and procedures, as well as any
other terms deemed necessary or advisable.  All terms so agreed upon shall
be incorporated into an ordinance of such unit of local government,
and the Department shall not collect the tax pursuant to this Section until
such ordinance takes effect.
(c) (1) 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 units of local government from which retailers or other taxpayers have paid taxes or penalties
hereunder to the Department during the second preceding calendar month.
(i) The amount to be paid to each unit of local government shall equal
the taxes and penalties collected by the Department for the unit of local government pursuant to this Section during the second preceding calendar month (not including credit memoranda), plus an amount the Department determines is necessary to offset any amounts which were erroneously paid to a different taxing body, and not including (i)  an amount equal to the amount of refunds made during the second preceding calendar month by the Department of behalf of such county or municipality and (ii) any amount which the Department determines is necessary to offset any amounts which are payable to a different taxing body but were erroneously paid to the municipality or county,
less 2% of the balance, or any greater amount of the balance as provided in the agreement between the Department and the unit of local government required under this Section, which sum shall be retained by the State Treasurer.
(ii) With respect to the amount to be retained by the State Treasurer pursuant to
subparagraph (i), the Department, at the time of each monthly disbursement to the units of local government, 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
 and used by the Department, subject to appropriation, to cover the costs incurred by the
Department in collecting taxes and penalties.
(2) Within 10 days after receiving the certifications described in paragraph
(1), the Comptroller shall issue orders for payment of the amounts specified
in subparagraph (i) of paragraph (1).
(d) Any unit of local government which imposes a tax
collected by the Department pursuant to this Section must file a certified copy of
the ordinance imposing the tax with the Department within 10 days after
its passage.  Beginning on June 30, 2016 (the effective date of Public Act 99-517), an ordinance or resolution imposing or discontinuing a tax collected by the Department under this Section 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 the tax imposition, discontinuance, or rate change as of the first day of July next following the adoption and filing; or (ii) be adopted and certified copy thereof filed with the Department on or before the first day of October, whereupon the Department shall proceed to administer and enforce the tax imposition, discontinuance, or rate change as of the first day of January next following the adoption and filing.
(e) It is declared to be the law of this State, pursuant to paragraph
(g) of Section 6 of Article VII of the Illinois Constitution, that Public Act 85-1215 is a denial of the power of a home rule unit to fail
to comply with the requirements of subsection (d) of this Section.
(Source: P.A. 99-517, eff. 6-30-16; 100-201, eff. 8-18-17.)