2023 Illinois Compiled Statutes › Chapter 65 - MUNICIPALITIES › 65 ILCS 5/ - Illinois Municipal Code. › Article 8 - Finance

(65 ILCS 5/Art. 8 heading)
ARTICLE 8
FINANCE
(65 ILCS 5/Art. 8 Div. 1 heading)
DIVISION 1.  
		GENERAL PROVISIONS
(65 ILCS 5/8-1-1) (from Ch. 24, par. 8-1-1)
Sec. 8-1-1. 
		
		The corporate authorities may control the finances of the
corporation.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-1-1.5)
Sec. 8-1-1.5. 
		Internal auditor. 
		The city council or board of trustees, as
appropriate, may create the office of internal auditor.  The duties of the
internal auditor
shall be to report directly to the council or board regarding the state of the
finances of the
municipality.  The internal auditor may be appointed as provided by
ordinance.
(Source: P.A. 93-483, eff. 1-1-04.)
(65 ILCS 5/8-1-2) (from Ch. 24, par. 8-1-2)
Sec. 8-1-2. 
		
		The corporate authorities may appropriate money for corporate
purposes only and provide for payment of debts and expenses of the
corporation.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-1-2.5)
Sec. 8-1-2.5. Expenses for economic development. The corporate authorities may appropriate and expend funds for economic development purposes, including, without limitation, the making of grants to any other governmental entity or commercial enterprise that are deemed necessary or desirable for the promotion of economic development within the municipality.
(Source: P.A. 97-94, eff. 7-11-11.)
(65 ILCS 5/8-1-3) (from Ch. 24, par. 8-1-3)
Sec. 8-1-3. 
		
		The corporate authorities may borrow money on the credit of the
corporation for corporate purposes, and issue bonds therefor, in such
amounts and form, and on such conditions unless otherwise provided in this
Code as the corporate authorities prescribe. Before, or at the time of
incurring any indebtedness, the corporate authorities shall provide for the
collection of a direct annual tax sufficient to pay the interest on the
debt as it falls due, and also to pay and discharge the principal thereof
within 20 years after contracting the debt.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-1-3.1) (from Ch. 24, par. 8-1-3.1)
Sec. 8-1-3.1. Borrowing from financial institutions. The corporate authorities may borrow money for corporate purposes from one fund
for the use of another fund providing such borrowing shall be repaid within
the current fiscal year.
The corporate authorities may also borrow money from any bank or other
financial institution provided such money shall be repaid within 10 years

from the time the money is borrowed.  The mayor or president of the municipality, as the case may be, shall execute a promissory note or similar debt instrument, but not a bond, to evidence the indebtedness incurred by the borrowing.  The obligation to make the payments due under the promissory note or other debt instrument shall be a lawful direct general obligation of the municipality payable from the general funds of the municipality and such other sources of payment as are otherwise lawfully available.  The promissory note or other debt instrument shall be authorized by an ordinance passed by the corporate authorities and shall be valid whether or not an appropriation with respect to that ordinance is included in any annual or supplemental appropriation adopted by the corporate authorities.  The indebtedness incurred under this Section, when aggregated with the existing indebtedness of the municipality, may not exceed the debt limitation provided in Section 8-5-1 of this Code. "Financial institution" means any bank, savings bank, savings and loan association, or credit union established under the laws of the United States, this State, or any other state;
 any regional planning commission or joint regional planning commission established in accordance with Section 5-14001 or Section 5-14003 of the Counties Code; or the Illinois Finance Authority.
(Source: P.A. 103-187, eff. 1-1-24.)
(65 ILCS 5/8-1-4) (from Ch. 24, par. 8-1-4)
Sec. 8-1-4. 
		
		The corporate authorities may provide for the consolidation or
refunding of maturing bonds and the funding of judgment debts, and to issue
bonds in place of maturing bonds or judgment debts.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-1-5) (from Ch. 24, par. 8-1-5)
Sec. 8-1-5. 
		
		Whenever in any fiscal year an ordinance authorizing the
issuance of bonds is approved by the electors in any municipality with a
population of 500,000 or more, subsequent to the passage of the annual
appropriation ordinance, the corporate authorities have the power, anything
in this Code to the contrary notwithstanding, to make a supplemental
appropriation of so much of the proceeds of the bonds, so authorized, as is
required for expenditure during the remainder of the current fiscal year
for the purpose set forth in the ordinance authorizing the issuance of the
bonds.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-1-6) (from Ch. 24, par. 8-1-6)
Sec. 8-1-6. 
		
		Neither the corporate authorities nor any department or officer
of any municipality shall add to the municipal expenditures in any fiscal
year anything over and above the amount provided for in the annual
appropriation ordinance of that year. No expenditure for an improvement to
be paid for out of the general fund of the municipality shall exceed in any
fiscal year the amount provided for that improvement in the annual
appropriation ordinance.
However, nothing herein contained shall prevent the corporate
authorities, by a two-thirds vote, from making additional appropriations
for the purpose of making improvements or restorations, the necessity for
which is caused by any casualty or accident happening after the annual
appropriation ordinance is passed, nor from making additional
appropriations necessary to meet any emergency, happening after and
unforeseen at the time of passing the annual appropriation ordinance.
Emergency, as used in this section, means a condition requiring immediate
action to suppress or prevent the spread of disease, or to prevent or
remove imminent danger to persons or property. For the purpose of providing
for these additional appropriations, the corporate authorities, by a
two-thirds vote, may authorize the mayor, or village president, and the
finance committee, or in municipalities under the commission form of
municipal government the mayor and commissioner of accounts and finances,
to borrow the amount of money necessary therefor for a space of time not
extending beyond the close of the next fiscal year. The sum borrowed and
the interest thereon, shall be added to the amount authorized to be raised
in the next general tax levy and embraced therein.
Should a judgment be obtained against a municipality, the mayor, or
village president, and the finance committee, or the mayor and commissioner
of accounts and finances, in commission form municipalities, under the
sanction of the corporate authorities, may borrow a sufficient amount to
pay the judgment for a space of time not extending beyond the close of the
next fiscal year. This sum and the interest thereon shall in like manner be
added to the amount authorized to be raised in the general tax levy of the
next year and embraced therein.
This section shall not apply to municipalities operating under special
charters.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-1-7) (from Ch. 24, par. 8-1-7)
Sec. 8-1-7. 
		
		(a) Except as provided otherwise in this Section, no
contract shall be made by the corporate authorities, or by
any committee or member thereof, and no expense shall be incurred by any of
the officers or departments of any municipality, whether the object of the
expenditure has been ordered by the corporate authorities or not, unless an
appropriation has been previously made concerning that contract or expense.
Any contract made, or any expense otherwise incurred, in violation of the
provisions of this section shall be null and void as to the municipality,
and no money belonging thereto shall be paid on account thereof. However,
pending the passage of the annual appropriation ordinance for any fiscal
year, the corporate authorities may authorize heads of departments or other
separate agencies of the municipality to make necessary expenditures for
the support thereof upon the basis of the appropriations of the preceding
fiscal year. However, if it is determined by two-thirds vote of the
corporate authorities then holding office at a regularly scheduled meeting
of the corporate authorities that it is expedient and in the best public
interest to begin proceedings for the construction of a needed public work,
then the provisions of this section shall not apply to the extent that the
corporate authorities may employ or contract for professional services
necessary for the planning and financing of such public work.
(b) Notwithstanding any provision of this Code to the contrary, the
corporate authorities of any municipality may make contracts for a term
exceeding one year and not exceeding the term of the mayor or president
holding office at the time the contract is executed,
relating to: (1) the employment of a municipal manager, administrator,
engineer, health officer, land planner, finance director, attorney, police
chief or other officer who requires technical training or knowledge; (2)
the employment of outside professional consultants such as engineers,
doctors, land planners, auditors, attorneys or other professional
consultants who require technical training or knowledge; (3) the provision
of data processing equipment and services; or (4) the provision of services
which directly relate to the prevention, identification or eradication of
disease.  In such case the corporate authorities shall include in the
annual appropriation ordinance for each fiscal year, an appropriation of a
sum of money sufficient to pay the amount which, by the terms of the
contract, is to become due and payable during the current fiscal year.
(c) This section shall not apply to municipalities operating under special
charters.
(d) In order to promote orderly collective bargaining relationships, to
prevent labor strife and to protect the interests of the public and the
health and safety of the citizens of Illinois, this Section shall not apply
to multi-year collective bargaining agreements between public employers and
exclusive representatives governed by the provisions of the Illinois Public
Labor Relations Act.
Notwithstanding any provision of this Code to the contrary, the
corporate authorities of any municipality may enter into multi-year
collective bargaining agreements with exclusive representatives under the
provisions of the Illinois Public Labor Relations Act.
(e) Notwithstanding any provision of this Code to the contrary, the
corporate
authorities of any municipality may enter into any multi-year contract or
otherwise
associate for any term under the provisions of Section 10 of Article VII of the
Illinois
Constitution or the Intergovernmental Cooperation Act.
(Source: P.A. 90-517, eff. 8-22-97.)
(65 ILCS 5/8-1-8) (from Ch. 24, par. 8-1-8)
Sec. 8-1-8. 
		
		All warrants drawn upon the municipal treasurer must be signed
by the mayor or president and countersigned by the municipal clerk, or the
city comptroller if there is one, stating the particular fund and the
appropriation to which the warrant is chargeable, and the person to whom
payable. No money shall be paid otherwise than upon such warrants so drawn,
except as otherwise provided.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-1-9) (from Ch. 24, par. 8-1-9)
Sec. 8-1-9. 
		
		No warrant payable on demand shall be drawn upon the municipal
treasurer or against any fund in his possession unless at the time of the
drawing there is sufficient money in the appropriate fund in the municipal
treasury to pay the warrant.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-1-10) (from Ch. 24, par. 8-1-10)
Sec. 8-1-10. 
		
		Interest received by a municipality upon deposits of money
derived from special assessments or special taxes and that part of the
interest, penalties, and costs received on account of any delinquent
special assessment or special tax, which is in excess of 6% annually on the
amount of that delinquent special assessment or special tax from the date
of the first voucher issued on account of work done to the date of the
receipt of the interest, penalties, and costs by the municipality, shall be
used first for paying any expense of the municipality in connection with
the collection or withdrawal from collection of any delinquent special
assessment or special tax or the preservation of the lien thereof, or in
connection with the sale or forfeiture of any real estate for delinquent
special assessments or special taxes, or in the preservation of the lien of
any certificate of sale or tax deed, and secondly shall be used to pay any
warrant, for which there are not sufficient funds, for the payment of past
due principal or interest on vouchers and bonds issued in anticipation of
the collection of the special assessments or special taxes identified by
such warrant.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-1-11) (from Ch. 24, par. 8-1-11)
Sec. 8-1-11. 
		
		Whenever a municipality does not have sufficient money
in its treasury to meet all necessary expenses and liabilities of the
municipality, including all expenses for building purposes, the
corporate authorities may issue and sell warrants drawn against and in
anticipation of taxes already levied for the particular funds from which
these expenses and liabilities may be paid, to the extent of 85% of the
total amount of those taxes. However, in municipalities in which there
has been created a working cash fund pursuant to the provisions of
Division 6 of this Article 8, no tax anticipation warrants shall be
drawn against taxes levied for general corporate purposes for such an
amount that the aggregate of (1) the amount of those warrants, and the
interest to accrue thereon, and (2) the aggregate amount of those
warrants theretofore drawn against those taxes and the interest accrued
and to accrue thereon, and (3) the aggregate amount of money theretofore
transferred from the working cash fund to the general fund of that
municipality, exceeds 90% of the actual or estimated amount of those
taxes extended or to be extended by the county clerk upon the books of
the collector or collectors of state and county taxes within that
municipality. Tax anticipation warrants drawn and issued under this
section shall show upon their face that they are payable in the
numerical order of their issuance solely from the anticipated taxes when
these anticipated taxes are collected and not otherwise. These warrants
shall be received by any collector of taxes in payment of the taxes
against which they are issued, and the taxes against which these
warrants are drawn shall be set apart and held for their payment.
(Source: P.A. 81-165.)
(65 ILCS 5/8-1-12) (from Ch. 24, par. 8-1-12)
Sec. 8-1-12. 
		
		Each warrant issued under Section 8-1-11 may be made
payable at the time fixed in the warrant and shall bear interest, payable
only out of the taxes against which it is drawn, at
a rate not to exceed the maximum rate authorized by the Bond Authorization
Act, as amended at the time of the making of the contract, from the date of its
issuance until paid, or until notice that the money for its payment is
available, and that it will be paid on presentation, is given by
publication in one or more newspapers published in the municipality, or, if
no newspaper is published therein, then in one or more newspapers with a
general circulation within the municipality. In municipalities with less
than 500 population in which no newspaper is published, publication may
instead be made by posting a notice in 3 prominent places within the
municipality. However, a lower rate of interest may be specified in the
warrant, in which case the interest shall be computed and paid at that
lower rate. The amendatory Acts of 1971, 1972 and 1973 are not a limit upon
any municipality which is a home rule unit.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been supplementary
grants of power to issue instruments in accordance with the Omnibus Bond
Acts, regardless of any provision of this Act that may appear to be or to
have been more restrictive than those Acts, (ii) that the provisions of
this Section are not a limitation on the supplementary authority granted by
the Omnibus Bond Acts, and (iii) that instruments issued under this Section
within the supplementary authority granted by the Omnibus Bond Acts are not
invalid because of any provision of this Act that may appear to be or to
have been more restrictive than those Acts.
(Source: P.A. 86-4.)
(65 ILCS 5/8-1-13) (from Ch. 24, par. 8-1-13)
Sec. 8-1-13. 
		
		Every municipality holding in its treasury funds which are set
aside for use for particular purposes, but which are not immediately
necessary for those purposes, by ordinance, may use those funds, or any of
them, in the purchase of tax anticipation warrants issued by the
municipality possessing the funds against taxes levied by that
municipality. These warrants shall bear interest not to exceed
the maximum rate authorized by the Bond Authorization Act, as amended at
the time of the making of the contract. All interest upon these warrants,
and all money paid in redemption of these warrants or received from the
resale thereof, shall at once be credited to and placed in the particular
fund used to purchase the specified warrants.
However, a municipality so using any of its funds for the purchase of
such tax anticipation warrants shall not apply to the payment thereof while
so held by it any taxes against and in anticipation of which the warrants
were issued, unless and until all warrants and the interest thereon, issued
by that municipality against and in anticipation of the same taxes and sold
to other purchasers have been first paid or money sufficient for the
payment thereof has been deposited in the municipal treasury as a special
fund to be used solely for the purpose of paying to the other purchasers
the warrants and the interest thereon when presented. Nothing contained in
this section shall prevent the resale or reissue of any warrants as
provided in Section 8-1-14.
Likewise, every municipality by ordinance may use the money in those
funds in the purchase of bonds issued by the municipality, possessing the
funds and representing the obligation and pledging the credit of that
municipality, or bonds and other interest bearing obligations of the United
States or of the State of Illinois. All interest upon these bonds or
obligations and all money paid in redemption of these bonds or obligations
or realized from the sale thereof, if afterwards sold, shall at once be
credited to and placed in the particular fund used to purchase specified
bonds or obligations.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been supplementary
grants of power to issue instruments in accordance with the Omnibus Bond
Acts, regardless of any provision of this Act that may appear to be or to
have been more restrictive than those Acts, (ii) that the provisions of
this Section are not a limitation on the supplementary authority granted by
the Omnibus Bond Acts, and (iii) that instruments issued under this Section
within the supplementary authority granted by the Omnibus Bond Acts are not
invalid because of any provision of this Act that may appear to be or to
have been more restrictive than those Acts.
(Source: P.A. 86-4.)
(65 ILCS 5/8-1-14) (from Ch. 24, par. 8-1-14)
Sec. 8-1-14. 
		
		If at any time it is deemed expedient to convert into money
any tax anticipation warrants theretofore issued and purchased with public
funds pursuant to the provisions of Section 8-1-13, before receipt of the
taxes in anticipation of which the warrants were issued, the corporate
authorities of the municipality, by ordinance or resolution, may authorize
a resale of such warrants and adjust the interest rate thereon, or may
authorize the issuance and sale of a like principal amount of new warrants
for the same purpose and in anticipation of the same taxes as the original
warrants were issued. These new warrants may have any date subsequent to
the date of the original tax anticipation warrants. The new tax
anticipation warrants shall be of the denomination and shall bear interest
at the rate, not to exceed the statutory rate, that is authorized by the
ordinance or resolution specified in this section. In a municipality which
constitutes a school district, and in which the corporate authorities are
required annually to levy all school taxes, the issuance of such new
warrants in anticipation of school taxes, or the resale of such original
warrants with adjusted interest rate, shall be approved by the board of
education of that school district.
Simultaneously with the delivery of these new tax anticipation warrants,
a like principal amount of the original warrants that were issued against
the same tax that is anticipated by the new warrants shall be paid and
cancelled. The proceeds of the sale of these new tax anticipation warrants
shall be used first to restore to the fund or funds so invested in the
original tax anticipation warrants, money equivalent to the par value and
accrued interest of the original tax anticipation warrants and the balance,
if any, shall revert to the fund for the creation of which the tax so
anticipated was levied. Warrants resold or reissued pursuant to the
provisions of this section shall have the same incidents of priority with
respect to payment and shall be paid in all respects in the same manner as
other warrants issued in anticipation of the same tax and sold in the first
instance to any purchaser other than the issuing municipality.
When tax anticipation warrants are reissued they shall bear the index
numerical designation of the original warrants and shall be subnumbered
consecutively in the order of reissuance, and shall be paid in the direct
order of reissuance, beginning with the earliest subnumber.
In determining the priority of payment of more than one series of tax
anticipation warrants against the collection of the same tax, the various
series shall be treated as having been issued on the date of the original
issue of each series of warrants. The series prior in point of time as thus
determined shall be paid first.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-1-15) (from Ch. 24, par. 8-1-15)
Sec. 8-1-15. 
		
		Any municipality having a population of 500,000 or more,
holding in its treasury any fund set aside for use for a particular purpose
that is not immediately necessary for that purpose, at any time by
ordinance may advance the money in that fund, or such part thereof as may
be required, to the board of local improvements of that municipality. The
board shall apply this money toward the payment of any final judgment of
condemnation rendered in any proceeding involving the taking or damaging of
private property for a local improvement of that municipality, the cost of
which is to be defrayed wholly or partly by special assessment or special
taxation.
Before any money is actually so advanced, the corporate authorities, by
the same ordinance, shall require the board of local improvements to
execute and deposit with the comptroller of the municipality a written
pledge or security to the entire extent of the special assessment or
special tax, for the repayment of the advance out of the proceeds of the
special assessment or special tax. The comptroller shall give a written
receipt for this pledge or security. After such a pledge or security is so
executed and deposited, all money paid on account of the principal and
interest of the special assessment or special tax shall be at once credited
to and placed in the fund from which the advance was made until the fund is
reimbursed for the advance made therefrom. Thereupon, the corporate
authorities by ordinance may cancel and release the pledge or security. The
entire amount of the advance shall be repaid to the specified fund within 5
years from the date of the passage of the ordinance providing for the
advance.
An advance shall bear interest at
a rate not to exceed the maximum rate authorized by the Bond Authorization
Act, as amended at the time of the making of the contract. The corporate
authorities shall make provision for the payment, out of any corporate
funds legally available therefor, of any part of this interest which is in
excess of the interest paid on account of the special assessment or special
tax and placed in the specified fund.
If there is no comptroller in the municipality, the municipal clerk
shall perform the duties of the comptroller specified in this section.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been
supplementary grants of power to issue instruments in accordance with the
Omnibus Bond Acts, regardless of any provision of this Act that may appear
to be or to have been more restrictive than those Acts, (ii) that the
provisions of this Section are not a limitation on the supplementary
authority granted by the Omnibus Bond Acts, and (iii) that instruments
issued under this Section within the supplementary authority granted by the
Omnibus Bond Acts are not invalid because of any provision of this Act that
may appear to be or to have been more restrictive than those Acts.
(Source: P.A. 86-4.)
(65 ILCS 5/8-1-16) (from Ch. 24, par. 8-1-16)
Sec. 8-1-16. 
		
		In any municipality with a population of 500,000 or more the
corporate authorities may levy a tax annually upon all the taxable property
in the municipality at a rate that will produce not to exceed $4,500,000
upon the valuation to be ascertained by the assessment of such property for
purposes of taxation for the year in which each such levy is made. This
tax, if levied, shall be for the purpose of paying judgments entered
against the municipality prior to January 1, 1941, and tort judgments and
judgments for damage to or for the taking of private property for public
use entered after January 1, 1941. This tax shall be levied and collected
in the same manner as the general taxes of the municipality. It shall be
known as the judgment tax and shall be in addition to the maximum of all
other taxes which the municipality is now, or may be hereafter, authorized
by law to levy upon the aggregate valuation of all taxable property within
the municipality.
All money received from this tax shall be set apart in a separate fund
and shall be used solely for the purpose of paying judgments as provided
for in this section. Judgments against the municipality shall be paid out
of this fund in the order in which the judgments were obtained. This order
of payment shall not apply to judgments of $1000 or less, which judgments
may be paid out of said order and in the order in which these judgments of
$1000 or less were obtained.
Interest accrued on these judgments shall be paid with the principal
thereof. However, the interest accrued to any particular date on all
judgments payable out of this fund may be paid ratably at any time without
payment of the principal thereof. Warrants issued in anticipation of the
judgment tax under the provisions of Sections 8-1-11 and 8-1-12 shall bear
interest at a rate not to exceed the maximum rate authorized by the Bond
Authorization Act, as amended at the time of the making of the contract.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been supplementary
grants of power to issue instruments in accordance with the Omnibus Bond
Acts, regardless of any provision of this Act that may appear to be or to
have been more restrictive than those Acts, (ii) that the provisions of
this Section are not a limitation on the supplementary authority granted by
the Omnibus Bond Acts, and (iii) that instruments issued under this Section
within the supplementary authority granted by the Omnibus Bond Acts are not
invalid because of any provision of this Act that may appear to be or to
have been more restrictive than those Acts.
(Source: P.A. 86-4.)
(65 ILCS 5/8-1-17) (from Ch. 24, par. 8-1-17)
Sec. 8-1-17. 
		
		The corporate authorities of any municipality
may receive funds from the United States pursuant to the "Comprehensive
Employment and Training Act of 1973", Public Law 93-203, and may disburse
such funds together with any other municipal funds for the purposes
specified in that public law.
The provisions of this Section are not a limitation on the powers of a
home rule municipality.
(Source: P.A. 79-389.)
(65 ILCS 5/8-1-18) (from Ch. 24, par. 8-1-18)
Sec. 8-1-18. 
		
		Purchases made pursuant to this Act shall be made in
compliance with the "Local Government Prompt Payment Act", approved by the
Eighty-fourth General Assembly.
(Source: P.A. 84-731.)
(65 ILCS 5/Art. 8 Div. 2 heading)
DIVISION 2.  
		ANNUAL APPROPRIATION ORDINANCES
(65 ILCS 5/8-2-1) (from Ch. 24, par. 8-2-1)
Sec. 8-2-1. 
		
		Pursuant to the provisions of Sections 8-2-1 through 8-2-8, the
corporate authorities in municipalities with a population of 500,000 or
more, shall pass an ordinance within the last 60 days of each fiscal year,
to be termed the annual appropriation ordinance. In this ordinance the
corporate authorities, subject to the limitations contained in Sections
8-2-1 through 8-2-8, may appropriate such sums of money as are deemed
necessary to defray all necessary expenses and liabilities of the
municipality to be paid or incurred during the next fiscal year.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-2-2) (from Ch. 24, par. 8-2-2)
Sec. 8-2-2. 
		
		Prior to November 15 of each year, the mayor in municipalities
specified in Section 8-2-1 shall submit to the corporate authorities the
executive budget for the ensuing fiscal year as prepared by the budget
director of the municipality and approved by the mayor. The executive
budget, as the same may be revised or altered by the corporate authorities,
shall provide the basis upon which the annual appropriation ordinance is
prepared and enacted.
The budget document shall set forth estimates, by classes, of all
current assets and liabilities of each fund of the municipality, as of the
beginning of the fiscal year, for which appropriations are to be made, and
the amount of those assets which will be available for appropriation in
that year, either for expenditures or charges to be made or incurred during
that year or for liabilities unpaid at the beginning thereof. Estimates of
taxes to be received from the levies of prior years shall be net, after
deducting the amounts estimated to be sufficient to cover the loss and cost
of collecting these taxes. These amounts shall include (1) uncollectible
taxes, (2) the cost of collecting taxes, (3) the amount of these taxes for
the nonpayment of which real estate has been or will be forfeited to the
State, and (4) the abatement in the amount of these taxes extended or to be
extended upon the collector's books. In order to secure net estimates there
also shall be deducted the principal of all unpaid tax anticipation
warrants and all interest accrued thereon and an amount estimated to be
sufficient to cover all interest to accrue thereon until redemption of
these tax anticipation warrants. Estimates of the liabilities of the
respective funds shall include (1) all final judgments, including accrued
interest thereon, entered against the municipality and unpaid at the
beginning of the fiscal year for which the appropriations are made, (2) any
amount for which the corporate authorities of the municipality are required
to reimburse the working cash fund from the general corporate fund pursuant
to the provisions of Division 6 of this Article 8, (3) the taxes levied for
the purposes of the reserves provided for in the Illinois Pension Code, as
now or hereafter amended and (4) all other liabilities. However, for the
purpose of these estimates, judgments, for the payment of which a special
tax has been authorized by law, shall not be deemed liabilities of the
general corporate fund of the municipality. Also, estimates of taxes to be
received from the levies of the years prior to 1945 for general corporate
purposes and estimates of the liabilities of the general corporate fund
incurred prior to January 1, 1945, shall not be included in the budget
document. The budget document shall also set forth detailed estimates of
all taxes to be levied for the fiscal year for which the appropriations are
to be made, and detailed estimates of all other current revenue to be
derived from sources other than such taxes, which will be applicable to
expenditures or charges to be made or incurred during that year. All of
these estimates shall be so segregated and classified as to funds and in
such other manner as to give effect to the requirements of law relating to
the respective purposes to which these assets, taxes, and other current
revenue are applicable to the end that no expenditure shall be authorized
or made for any purpose in excess of funds lawfully available therefor.
(Source: Laws 1965, p. 2505.)
(65 ILCS 5/8-2-3) (from Ch. 24, par. 8-2-3)
Sec. 8-2-3. 
		
		Proposed appropriations in municipalities specified in Section
8-2-1 shall be arranged according to funds and also according to
departments and other separate agencies of the municipal government. The
budget document shall specify the objects and purposes for which
appropriations are to be made and the amount proposed to be appropriated
for each object or purpose. It shall include proposed appropriations for
(1) all current expenditures or charges to be made or incurred during the
fiscal year for which appropriations are made; (2) all final judgments,
including accrued interest thereon, entered against the municipality and
unpaid at the beginning of that fiscal year, (3) any amount for which the
corporate authorities of the municipality are required to reimburse the
working cash fund from the general corporate fund pursuant to the
provisions of Division 6 of this Article 8, (4) the taxes levied for the
purposes of the reserves provided for in the Illinois Pension Code, as now
or hereafter amended, (5) all other liabilities, and (6) an amount
estimated to be sufficient to cover the loss and cost of collecting taxes
to be levied for that fiscal year. This last designated amount shall
include (1) uncollectible taxes, (2) the cost of collecting taxes (3) the
amount of taxes levied for the nonpayment of which real estate will be
forfeited to the state, and (4) the amount of taxes extended upon the
collector's books which will be abated. However, the corporate authorities
of the municipality shall not be required to appropriate any amount from
the general corporate fund of the municipality for the payment of any
judgment, for which a special tax has been authorized by law, or for the
payment of any other liability of the general corporate fund incurred prior
to January 1, 1945.
(Source: Laws 1965, p. 2505.)
(65 ILCS 5/8-2-4) (from Ch. 24, par. 8-2-4)
Sec. 8-2-4. 
		
		The objects and purposes for which appropriations shall be made
in municipalities specified in Section 8-2-1 are classified and
standardized by the following items, and by such items shall be designated
in the budget document, and the annual appropriation ordinance:
(1) Personal services
(2) Contractual services
(3) Travel
(4) Commodities
(5) Equipment
(6) Permanent improvements
(7) Land
(8) Contingencies
An appropriation in one or more of the items above specified shall be
construed in accordance with the definitions and limitations specified in
Sections 8-2-1 through 8-2-8, unless the appropriation ordinance otherwise
provides. An appropriation for a purpose other than one specified and
defined in this section and in Section 8-2-5 may be made only as an
additional, separate and distinct item, specifically stating the object and
purpose thereof.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-2-5) (from Ch. 24, par. 8-2-5)
Sec. 8-2-5. 
		
		The items specified in Section 8-2-4 when used in the budget
document and appropriation ordinance of municipalities specified in Section
8-2-1 are defined as follows:
(1) "Personal services": the reward or recompense made for personal
services rendered for the municipality by an individual as an officer or
employee of a municipality or an instrumentality thereof, or as an
independent contractor, including any amount required to be deducted from
the reward or recompense of any such person under the provisions of any
retirement or tax law, or both.
(2) "Contractual service": the expenditures incident to the completion
of a project or the current conduct and operation of an office, department,
board, commission or agency, including, but not limited to, postage and
postal charges, surety bond premiums, title insurance, publications, office
conveniences and services, exclusive of "commodities" as herein defined,
and including also expenditures for rental of property or equipment, repair
or maintenance of property or equipment, utility services, professional or
technical services, and transportation charges exclusive of "travel" as
herein defined.
(3) "Travel": any expenditure directly incident to official travel by
municipal officers and employees or by wards or charges of the municipality
involving reimbursement to travelers or direct payment to private agencies
providing transportation or related services.
(4) "Commodities": expenditures in connection with current operation and
maintenance for the purchase of articles of a consumable nature which show
a material change or appreciable depreciation with first usage, repair
parts, and small tools having a unit value not in any instance exceeding
$10.
(5) "Equipment": expenditures for the acquisition, replacement or
increase of visible tangible personal property of a non-consumable nature,
including livestock.
(6) "Permanent improvements": expenditures for the acquisition,
enlargement or improvement of existing buildings and structures (other than
repair), the erection or construction of any structure or work which
constitutes a substantial addition to real estate, including the total cost
thereof in labor, material and supplies and any other costs and charges
necessary or incident to the completion of the building or structure but
not including "equipment" as herein defined.
(7) "Land": expenditures for the acquisition of real estate (or rights
therein other than leasehold interests obtained through rental), and
consequential damage to real estate occasioned by public improvements,
whether obtained by purchase or by condemnation under the eminent domain
laws of the state, and for expenses necessarily incidental to such purchase
or condemnation.
(8) "Contingencies": expenditures for purposes not covered in any other
item, which purposes could not reasonably have been foreseen and provided
for at the time of the enactment of the appropriation ordinance. The amount
of any such contingency item for any office, department, board, commission
or agency shall in no case exceed $100,000.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-2-6) (from Ch. 24, par. 8-2-6)
Sec. 8-2-6. 
		
		Budget document; availability; hearing; limitations on
appropriations.
(a) The corporate authorities in municipalities specified in
Section 8-2-1 shall make the budget document as submitted by the mayor
conveniently available to public inspection for at least 10 days before
the passage of the annual appropriation ordinance, by publication in the
journal of the proceedings of the corporate authorities or in another
form prescribed by the corporate authorities.
(b) Not less than one week
after the publication of the budget document, and before final action on
the appropriation ordinance, the corporate authorities shall hold at least
one public hearing on the budget document. Notice of this hearing shall be
given by publication in a newspaper having a general circulation in the
municipality at least one week before the time of the
hearing. After the public hearing and before final action is taken on the appropriation
ordinance, the corporate authorities may revise, alter, increase, or
decrease the items contained in the budget document. Upon completion of its
action on the budget document, the corporate authorities shall enact the
budget document as so revised as the annual appropriation
ordinance.
(c) All of the
requirements pertaining to the form and substance of the budget document,
including limitations, as prescribed in Sections 8-2-1 through 8-2-8, shall
be applicable to the appropriation ordinance. Detailed schedules supporting
the appropriation ordinance shall be attached to the ordinance and shall be
published in the official record of the municipalities simultaneously with
the appropriation ordinance, but shall not be considered as an official
part of the ordinance.
(d) The aggregate amount finally appropriated by the
appropriation ordinance, including any subsequent amendment of the
ordinance, from
any fund or for any purpose (including amounts appropriated for judgments
and all other unpaid liabilities and all other purposes for which the
corporate authorities are by this Section or otherwise by law required to
appropriate) shall not exceed the aggregate amount available in that fund
or for that purpose as shown by the estimates of the available assets
thereof at the beginning of the fiscal year for which appropriations are
made and of taxes and other current revenue set forth in the budget
document as submitted to the corporate authorities or as revised by the
budget director. If the appropriations from any
fund as set forth in the appropriation ordinance as finally adopted exceed
in the aggregate the maximum amount that the corporate authorities are
authorized by this Section to appropriate from the fund,
all appropriations
made from that fund by the appropriation ordinance are void. In this latter
event, the several amounts appropriated for current operation and
maintenance expense in the appropriation ordinance of the last preceding
fiscal year shall be deemed to be appropriated for the fiscal year for
which the void appropriations were made for the objects and purposes,
respectively, as specified in the last preceding appropriation ordinance.
The several amounts so deemed to be appropriated shall constitute lawful
appropriations upon which taxes for the fiscal year for which the void
appropriations were made may be levied under
Section 8-3-1.
(e) The corporate authorities may amend the annual appropriation
ordinance at their next regular meeting occurring not less than 5 days
after the passage of the ordinance, in the same manner as other ordinances. If any
item of appropriation contained in the appropriation ordinance is vetoed by the mayor, with
a recommendation for a change in that item, the adoption of
the recommendation by
a yea and nay vote shall be regarded as the equivalent of an amendment of
the annual appropriation ordinance with the same effect as if an amendatory
ordinance were duly passed. The appropriation ordinance, as originally
passed or as subsequently amended, also may be amended at any regular or
special meeting of the corporate authorities held not more than 15 days
after the first regular meeting of the corporate authorities occurring not
less than 5 days after the passage of the ordinance, by repealing or
reducing the amount of any item of appropriation contained in the
ordinance.
(Source: P.A. 87-1119.)
(65 ILCS 5/8-2-7) (from Ch. 24, par. 8-2-7)
Sec. 8-2-7. 
		
		Except as otherwise specially provided by law, no further
appropriations in municipalities specified in Section 8-2-1 shall be made
prior to the passage of the next succeeding annual appropriation ordinance.
However, during any fiscal year the corporate authorities in such
municipalities may adopt a supplemental appropriation ordinance in an
amount not in excess of the aggregate of any additional revenue available
to the municipality, or estimated to be received by the municipality
subsequent to the adoption of the annual appropriation ordinance for that
fiscal year. Such supplemental appropriation ordinance shall only affect
revenue that was not available for appropriation when that annual
appropriation ordinance was adopted, and the provisions of Section 8-2-6
relating to publication, notice and public hearing shall not be applicable
to such supplemental appropriation ordinance or to the budget document
forming the basis of such ordinance. At any time during the fiscal year,
the corporate authorities by a majority vote of all their members and upon
request of the mayor, may make transfers within any department or other
separate agency of the municipal government, of sums of money appropriated
for one corporate object or purpose to another corporate object or purpose,
but the aggregate of transfers from any appropriation shall not exceed 5%
of the appropriation. At any time after the first half of each fiscal year,
the corporate authorities may, by a two-thirds vote of all of their
members, make transfers within any department or other separate agency of
the municipal government, of sums of money appropriated for one corporate
object or purpose to another corporate object or purpose in excess of the
5% limitation, but no appropriation for any object or purpose shall by
virtue of any transfer herein authorized be reduced below an amount
sufficient to cover all obligations incurred or to be incurred against that
appropriation.
(Source: Laws 1967, p. 2672.)
(65 ILCS 5/8-2-8) (from Ch. 24, par. 8-2-8)
Sec. 8-2-8. 
		
		Nothing contained in Sections 8-2-1 through 8-2-7 shall deprive
the corporate authorities of power to provide for the payment from the
funds of the municipality of any charge imposed by law without the action
of any corporate authority thereof, whenever the payment of the charge has
been ordered by a court of competent jurisdiction.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-2-9) (from Ch. 24, par. 8-2-9)
Sec. 8-2-9. 
In municipalities with less than 500,000 inhabitants, except as otherwise provided in this Section, the
corporate authorities shall pass an ordinance within the first quarter
of each fiscal year, to be termed the annual appropriation ordinance. On and after January 1, 2020, if a disaster, state of emergency, or national emergency is declared within the 60 days preceding the end of the first quarter of a municipality's fiscal year and the disaster, emergency, or declaration impacts the municipality, the time limit to pass the annual appropriation ordinance shall be extended for the duration of the disaster or emergency and for 60 days thereafter. During the extended period, the municipality may expend sums of money up to amounts budgeted or appropriated for those objects and purposes in the previous fiscal year to defray all necessary expenses and liabilities of the municipality. In
this ordinance, the corporate authorities (i) may appropriate sums
of money deemed necessary to defray all necessary expenses and
liabilities of the municipalities, including the amounts to be deposited
in the reserves provided for in the Illinois Pension Code and (ii) shall
specify the objects and purposes for which these appropriations are made
and the amount appropriated for each object or purpose. Among the objects
and purposes specified shall be the reserves provided for in the Illinois
Pension Code. Except as otherwise provided, no further
appropriations shall be made at any other time within the same fiscal
year, unless a proposition to make each additional appropriation has
been first sanctioned by a petition signed by electors of the
municipality numbering more than 50% of the number of votes cast for the
candidates for mayor or president at the last preceding general
municipal election at which a mayor or president was elected, by a
petition signed by them, or by a majority of those voting on the
question at a regular election or at  an emergency referendum authorized in
accordance with the general election law. The corporate authorities may by
ordinance initiate the submission of the proposition. During any fiscal
year, the corporate authorities in municipalities subject to this Section
may adopt a supplemental appropriation ordinance in an amount not in excess
of the aggregate of any additional revenue available to the
municipality, or estimated to be received by the municipality after
the adoption of the annual appropriation ordinance for that fiscal
year, or from fund balances available when the annual appropriation
ordinance was adopted but that were not appropriated at that time.
The provisions of this Section prohibiting further appropriations without
sanction by petition or election shall not be applicable to the
supplemental appropriation for that fiscal year. The corporate authorities
at any time, however, by a two-thirds vote of all the members of the body,
may make transfers within any department or other separate agency of the
municipal government of sums of money appropriated for one corporate object
or purpose to another corporate object or purpose, but no appropriation for
any object or purpose shall thereby be reduced below an amount sufficient
to cover all obligations incurred or to be incurred against the
appropriation. Nothing in this Section shall deprive the corporate
authorities of the power to provide for and cause to be paid from the funds
of the municipality any charge imposed by law without the action of the
corporate authorities, the payment of which is ordered by a court of
competent jurisdiction.
At least 10 days before the adoption of the annual appropriation
ordinance, the corporate authorities of municipalities over 2,000 in
population shall make the proposed appropriation ordinance or a formally
prepared appropriation or budget document upon which the annual
appropriation ordinance will be based conveniently available to public
inspection. In addition, the corporate authorities shall hold at least one
public hearing on that proposed appropriation ordinance. Notice of this
hearing shall be given publication in one or more newspapers published in
the municipality or, if there is none published in the municipality, in a
newspaper published in the county and having general circulation in the
municipality at least 10 days before the time of the public hearing. The
notice shall state the time and place of the hearing and the place where
copies of the proposed appropriation ordinance or formally prepared
appropriation or budget document will be accessible for examination. The
annual appropriation ordinance may be adopted at the same meeting at which
the public hearing is held or at any time after that public hearing.
After the public hearing and before final action is taken on the
appropriation ordinance, the corporate authorities may revise, alter,
increase, or decrease the items contained in the ordinance.
Notwithstanding any above provision of this Section, any
municipality in which Article 5 becomes effective after the annual
appropriation ordinance has been passed for the current fiscal year may
amend the appropriation ordinance in any manner necessary to make
Article 5 fully operative in that municipality for that fiscal year. No
amendment shall be construed, however, to affect any tax levy
made on the basis of the original appropriation ordinance.
This Section does not apply to municipalities operating under
special charters.
(Source: P.A. 101-640, eff. 6-12-20.)
(65 ILCS 5/8-2-9.1) (from Ch. 24, par. 8-2-9.1)
Sec. 8-2-9.1. Budget officer. Every municipality with a population of
less than 500,000
(except special charter municipalities having a population in excess of
50,000) that has adopted this Section 8-2-9.1 and Sections
8-2-9.2
through 8-2-9.10 by a two-thirds majority vote of those members of the
corporate authorities then holding office shall have a budget officer who
shall be designated by the mayor or president, with the approval of the
corporate authorities. In municipalities operating
under the
commission form of government, the commissioner of accounts and
finances shall designate the budget officer,
with the approval of the council or board of trustees, as the case may
be. In municipalities with a managerial form of government, the
municipal
manager shall designate the budget officer. The budget officer shall
take an oath and post a bond as provided in
Section 3.1-10-25. The budget officer may hold another municipal
office,
either elected or appointed (including, but not limited to, the office of mayor or president in municipalities with a population under 10,000), and may receive compensation for both offices except when a mayor or president in a municipality with a population under 10,000 is also the budget officer.
Article 10 of this Code shall not apply to an individual serving as the
budget officer. The budget officer shall serve at the pleasure of
the
mayor or municipal manager, as the case may be.
(Source: P.A. 99-386, eff. 8-17-15.)
(65 ILCS 5/8-2-9.2) (from Ch. 24, par. 8-2-9.2)
Sec. 8-2-9.2. 
		
		The municipal budget officer appointed in any municipality
pursuant to Section 8-2-9.1 shall have the following powers and duties:
(a) Permit and encourage and establish the use of efficient planning,
budgeting, auditing, reporting, accounting, and other fiscal management
procedures in all municipal departments, commissions, and boards.
(b) Compile an annual budget in accordance with Section 8-2-9.3.
(c) Examine all books and records of all municipal departments,
commissions, and boards which relate to monies received by the
municipality, municipal departments, commissions, and boards, and paid out
by the municipality, municipal departments, commissions, and boards, debts
and accounts receivable, amounts owed by or to the municipality, municipal
departments, commissions, and boards.
(d) Obtain such additional information from the municipality, municipal
departments, commissions, and boards as may be useful to the budget officer
for purposes of compiling a municipal budget, such information to be
furnished by the municipality, municipal departments, commissions, and
boards in the form required by the budget officer. Any department,
commission or board which refuses to make such information as is requested
of it available to the budget officer shall not be permitted to make
expenditures under any subsequent budget for the municipality until such
municipal department, commission, or board shall comply in full with the
request of the budget officer.
(e) Establish and maintain such procedures as shall insure that no
expenditures are made by the municipality, municipal departments,
commissions, or board except as authorized by the budget.
(Source: P.A. 76-1117.)
(65 ILCS 5/8-2-9.3) (from Ch. 24, par. 8-2-9.3)
Sec. 8-2-9.3. 
		
		The municipal budget officer shall compile a budget, such
budget to contain estimates of revenues available to the municipality for
the fiscal year for which the budget is drafted, together with recommended
expenditures for the municipality and all of the municipality's
departments, commissions, and boards.  Revenue estimates and expenditure
recommendations shall be presented in a manner which is in conformity with
good fiscal management practices.  Substantial conformity to a chart of
accounts, now or in the future, recommended by the National Committee on
Governmental Accounting, or the Auditor of Public Accounts of the State
of Illinois, or the Division of Local Governmental Affairs and Property
Taxes of the Department of Revenue of the State of Illinois or successor
agencies shall be deemed proof of such conformity.  The budget shall contain
actual or estimated revenues and expenditures for the two years immediately
preceding the fiscal year for which the budget is prepared.  So far as is
possible, the fiscal data for such two preceding fiscal years shall be
itemized in a manner which is in conformity with the chart of accounts
approved above.  Each budget shall show the specific fund from which each
anticipated expenditure shall be made.
(Source: P.A. 91-357, eff. 7-29-99.)
(65 ILCS 5/8-2-9.4) (from Ch. 24, par. 8-2-9.4)
Sec. 8-2-9.4. 
Passage of the annual budget by the corporate authorities
shall be in lieu of passage of the appropriation ordinance as required by
Section 8-2-9 of this Act. The annual budget need not be published except
in a manner provided for in Section 8-2-9.9. Except as otherwise provided in this Section, the annual budget shall be
adopted by the corporate authorities before the beginning of the fiscal
year to which it applies. On and after January 1, 2020, if a disaster, state of emergency, or national emergency is declared within 60 days of the end of a municipality's fiscal year and the disaster, emergency, or declaration impacts the municipality, the time limit to pass the annual budget shall be extended for the duration of the disaster or emergency and for 60 days thereafter. During the extended period, the municipality may expend sums of money up to amounts budgeted or appropriated for those objects and purposes in the previous fiscal year to defray all necessary expenses and liabilities of the municipality.
(Source: P.A. 101-640, eff. 6-12-20.)
(65 ILCS 5/8-2-9.5) (from Ch. 24, par. 8-2-9.5)
Sec. 8-2-9.5. 
		
		In the preparation by the municipal budget officer of the
annual budget, an amount not to exceed 3% of the equalized assessed value of
property subject to taxation by the municipality may be accumulated in a
separate fund for the purpose or purposes of specific capital improvements,
repairs, and/or replacements of specific types of municipal equipment or
other tangible property, both real and personal, to be designated as the
"Capital Improvement, Repair or Replacement Fund". Expenditures from the
Capital Improvement, Repair or Replacement Fund shall be budgeted in the
fiscal year in which the capital improvement, repair or replacement will
occur. Upon the completion or abandonment of any object for which the
Capital Improvement, Repair or Replacement Fund, or should any surplus
monies remain after the completion or abandonment of any object for which
the Capital Improvement, Repair or Replacement Fund was inaugurated, then
such funds no longer necessary for capital improvement, repair or
replacement shall be transferred into the general corporate fund of the
municipality on the first day of the fiscal year following such
abandonment, completion, or discovery of surplus funds.
(Source: P.A. 84-147.)
(65 ILCS 5/8-2-9.6) (from Ch. 24, par. 8-2-9.6)
Sec. 8-2-9.6. 
		
		The corporate authorities may delegate authority to heads of
municipal departments, boards, or commissions to delete, add to, change or
create sub-classes within object classes budgeted previously to the
department, board, or commission, subject to such limitation or requirement
for prior approval by the budget officer or executive officer of the
municipality as the council, upon a two-thirds vote of the corporate
authorities then holding office, may establish. By a vote of two-thirds of
the members of the corporate authorities then holding office, the annual
budget for the municipality may be revised by deleting, adding to, changing
or creating sub-classes within object classes and object classes
themselves. No revision of the budget shall be made increasing the budget
in the event funds are not available to effectuate the purpose of the
revision.
(Source: P.A. 76-1117.)
(65 ILCS 5/8-2-9.7) (from Ch. 24, par. 8-2-9.7)
Sec. 8-2-9.7. 
		Funds for contingency purposes. 
		The annual budget may contain
money set aside for contingency
purposes not to exceed ten percent of the total budget, less the amount set
aside for contingency purposes, which monies may be expended for
contingencies upon a majority vote of the corporate authorities then
holding office.
(Source: P.A. 76-1117.)
(65 ILCS 5/8-2-9.9) (from Ch. 24, par. 8-2-9.9)
Sec. 8-2-9.9. 
		
		The corporate authorities shall make the tentative annual
budget conveniently available to public inspection for at least ten days
prior to the passage of the annual budget, by publication in the journal of
the proceedings of the corporate authorities or in such other form as the
corporate authorities may prescribe. Not less than one week after the
publication of the tentative annual budget, and prior to final action on
the budget, the corporate authorities shall hold at least one public
hearing on the tentative annual budget, after which hearing or hearings the
tentative budget may be further revised and passed without any further
inspection, notice or hearing. Notice of this hearing shall be given by
publication in a newspaper having a general circulation in the municipality
at least one week prior to the time of the hearing.
(Source: P.A. 76-1117.)
(65 ILCS 5/8-2-9.10) (from Ch. 24, par. 8-2-9.10)
Sec. 8-2-9.10. 
		
		Any municipality that has previously adopted the provisions
of these Sections 8-2-9.1 through 8-2-9.9 may abandon the provisions hereof
by a 2/3 majority vote of the corporate authorities then holding office.
(Source: P.A. 76-1117.)
(65 ILCS 5/8-2-9.11) (from Ch. 24, par. 8-2-9.11)
Sec. 8-2-9.11. 
		
		Whenever any municipality has entered into a contract
for the repair, remodeling, renovation or construction of a building or
structure or the construction or maintenance of a road or highway, which
provides for retention of a
percentage of the contract
price until final completion and acceptance of the work, upon the request of
the contractor and with the approval of the municipality, the amount so
retained may be deposited under a trust agreement with an Illinois bank
of the contractor's choice and subject to the approval of the municipality.
The contractor shall receive any interest thereon.
Upon application by the contractor, the trust agreement must contain, as a
minimum, the following provisions:
a.  The amount to be deposited subject to the trust;
b. The terms and conditions of payment in case of default of the
contractor;
c. The termination of the trust agreement upon completion of the
contract; and
d. The contractor shall be responsible for obtaining the written
consent of the bank trustee, and any costs or service fees shall be
borne by the contractor.
The trust agreement may, at the discretion of the municipality and
upon request of the contractor, become operative at the time of the
first partial payment in accordance with existing statutes, ordinances and municipality
procedures.
(Source: P.A. 82-503.)
(65 ILCS 5/Art. 8 Div. 3 heading)
DIVISION 3.  
		LEVY AND COLLECTION OF TAXES
(65 ILCS 5/8-3-1) (from Ch. 24, par. 8-3-1)
Sec. 8-3-1. 
The corporate authorities may levy and collect taxes for
corporate purposes. They shall do this in the following manner:
On or before the last Tuesday in December in each year,
the corporate authorities shall ascertain the total amount of
appropriations legally made or budgeted for and any amount deemed
necessary to defray additional expenses and liabilities for all
corporate purposes to be provided for by the tax levy of that year.
Then, by an ordinance specifying in detail in the manner authorized for
the annual appropriation ordinance or budget of the municipality, the
purposes for which the appropriations, budgeting or such additional
amounts deemed necessary have been made and the amount assignable for
each purpose respectively, the corporate authorities shall levy upon all
property subject to taxation within the municipality as that property is
assessed and equalized for state and county purposes for the current
year.
A certified copy of this ordinance shall be filed with the county
clerk of the proper county. He shall ascertain the rate per cent which,
upon the value of all property subject to taxation within the
municipality, as that property is assessed or equalized by the
Department of Revenue, will produce a net amount of not
less than the total amount so directed to be levied. The county clerk
shall extend this tax in a separate column upon the books of the
collector of state and county taxes within the municipality.
However, in ascertaining the rate per cent in municipalities having a
population of 500,000 or more, the county clerk shall not add to the
amount of the tax so levied for any purpose any amount to cover the loss
and cost of collecting the tax, except in the case of amounts levied for
the payment of bonded indebtedness, or interest thereon, and in the case
of amounts levied for the purposes of pension funds.
Where the corporate limits of a municipality lie partly in 2 or more
counties, the corporate authorities shall ascertain the total amount of
all taxable property lying within the corporate limits of that
municipality in each county, as the property is assessed or
equalized by the Department of Revenue for the current year, and
shall certify the amount of taxable property in each county within that
municipality under the seal of the municipality, to the county clerk of
the county where the seat of government of the municipality is situated.
That county clerk shall ascertain the rate per cent which, upon the
total valuation of all property subject to taxation within that
municipality, ascertained as provided in this Section, will produce a
net amount not less than the total amount directed to be levied. As soon
as that rate per cent is ascertained, that clerk shall certify the rate
per cent under his signature and seal of office to the county clerk of each
other county wherein a portion of that municipality is situated. A
county clerk to whom a rate per cent is certified shall extend the tax
in a separate column upon the books of the collector of state and county
taxes for his county against all property in his county within the
limits of that municipality.
But in municipalities with 500,000 or more inhabitants, the aggregate
amount of taxes so levied exclusive of the amount levied for the payment
of bonded indebtedness, or interest thereon, and exclusive of taxes
levied for the payment of judgments, for which a special tax is
authorized by law, and exclusive of the amounts levied for the purposes
of pension funds, working cash fund, public library, the propagation and preservation of community
trees, and exclusive of taxes levied pursuant to Section 19 of the
Illinois Emergency Services and Disaster Agency Act of 1975 and for the
general assistance for needy persons lawfully resident therein, shall not
exceed the estimated amount of taxes to be levied for each year for the
purposes specified in Sections 8-2-2 through 8-2-5 and set forth in its
annual appropriation ordinance and in any supplemental appropriation
ordinance authorized by law for that year.
In municipalities with less than 500,000 inhabitants, the aggregate
amount of taxes so levied for any one year, exclusive of the amount
levied for the payment of bonded indebtedness, or interest thereon, and
exclusive of taxes levied pursuant to Section 13 of the Illinois Civil
Defense Act of 1951 and exclusive of taxes authorized by this Code or other
Acts which by their terms provide that those taxes shall be in addition to
taxes for general purposes authorized under this Section, shall not exceed
the rate of .25%, or the rate limit in effect on July 1, 1967, whichever is
greater, and on a permanent basis, upon the aggregate valuation of all
property within the municipality subject to taxation therein, as the
property is equalized or assessed by the Department of Revenue for the
current year. However, if the maximum rate of such municipality for general
corporate purposes is less than .20% on July 1, 1967, the corporate
authorities may, without referendum, increase such maximum rate not to
exceed .25%; but such maximum rate shall not be raised by more than 1/2 of
such increase in any one year.
However, if the corporate authorities of a municipality with less
than 500,000 inhabitants desire to levy in any one year more than .25%,
or the rate limit in effect on July 1, 1967, whichever is greater, and
on a permanent basis, but not more than .4375% for general corporate
purposes, exclusive of the amount levied for the payment of bonded
indebtedness, or interest thereon, and exclusive of taxes authorized by
this Code or other Acts which by their terms provide that those taxes
shall be in addition to taxes for general purposes authorized under this
Section the corporate authorities, by ordinance, stating the per cent
so desired, may order a proposition for the additional amount to be
submitted to the electors of that municipality at any election. The clerk
shall certify the proposition to the proper election authority who shall
submit the question to the electors at such election. If a majority of the
votes cast on the proposition  are in favor of the proposition, the
corporate authorities of that municipality may levy annually for general
corporate purposes, exclusive of the amount levied for the payment of
bonded indebtedness, or interest thereon, and exclusive of taxes authorized
by this Code or other Acts which by their terms provide that those taxes
are in addition to taxes for general purposes authorized under this
Section a tax in excess of .25%, or the rate in effect on July 1, 1967,
whichever is greater, and on a permanent basis, but not exceeding the per
cent mentioned in the proposition.
Any municipality voting after August 1, 1969, to increase its rate
limitation for general corporate purposes under this Section shall
establish such increased rate limitation on an ongoing basis unless
otherwise changed by referendum.
In municipalities that are not home rule units, any funds on hand at the
end of the fiscal year, which funds are not pledged for or allocated to a
particular purpose, may by action of the corporate authorities be
transferred to the capital improvement fund and accumulated therein, but
the total amount accumulated in such fund may not exceed 3% of the
aggregate assessed valuation of all taxable property in the municipality.
(Source: P.A. 102-587, eff. 1-1-22.)
(65 ILCS 5/8-3-1.1) (from Ch. 24, par. 8-3-1.1)
Sec. 8-3-1.1. 
		
		The corporate authorities of any municipality of less
than 500,000 inhabitants, by ordinance, may order the submission to
the electors of a proposition to accumulate a surplus from the tax levy
for general corporate purposes for a specified building project to be
undertaken by the municipality when such accumulation becomes sufficient
therefor. Such proposition shall be certified by the clerk to the proper
election authority who shall submit the question at an election in accordance
with the general election law. The proposition shall be in substantially the
following
form:
--------------------------------------------------------------
Shall the municipality of
....... accumulate general           YES
corporate funds for the          -----------------------------
purpose of building..........
(here state building purpose)?       NO
--------------------------------------------------------------
If a majority of the electors voting on the proposition vote in favor
thereof, the municipality may use a portion of the funds levied for
general corporate purposes, within the tax rate and to the extent
allowed by Section 8-3-1, for the purpose of accumulating funds for such
building project.
(Source: P.A. 81-1489.)
(65 ILCS 5/8-3-2) (from Ch. 24, par. 8-3-2)
Sec. 8-3-2. 
		
		The taxes levied under Section 8-3-1 shall be collected and
enforced in the same manner and by the same officers as state and county
taxes, and shall be paid over by the officers collecting the tax to the
municipal treasurer, or, in the case of a tax levied for library purposes
in municipalities having not to exceed 50,000 inhabitants, to the board of
directors of the library.
(Source: Laws 1967, p. 2674.)
(65 ILCS 5/8-3-3) (from Ch. 24, par. 8-3-3)
Sec. 8-3-3. 
		
		The officer collecting the taxes levied under Section 8-3-1
shall settle with and pay over to the municipal treasurer, or, in the case
of a tax levied for library purposes in municipalities having not to exceed
50,000 inhabitants, to the board of trustees of the library, as often as
once in 2 weeks from the time he commences the collection thereof, all
taxes he has then collected, till the whole tax collected is paid over. The
expenditures of taxes levied for library purposes, whether expended by the
municipal treasurer or by the board of library trustees shall be made
pursuant to the direction of the board of library trustees.
(Source: P.A. 84-770.)
(65 ILCS 5/8-3-4) (from Ch. 24, par. 8-3-4)
Sec. 8-3-4. 
		
		Whenever a municipality is required to levy a tax for the
payment of a particular debt, appropriation, or liability of the
municipality, the tax for that purpose shall be included in the total
amount levied by the corporate authorities, and certified to the county
clerk as provided in Section 8-3-1. However, if a municipality has funds
arising from any source whatsoever, including allocations received or to be
received under the Motor Fuel Tax Law, as heretofore and hereafter
amended which may lawfully be used for the retirement of a particular
debt, appropriation or liability of the municipality, or the payment of the
next maturing installment thereof, then if the municipality by resolution
directs the application of such funds to the payment of the particular
debt, appropriation or liability or next maturing installment thereof, it
shall certify such resolution to the county clerk as provided in Section
8-3-1. The county clerk shall abate the levy for the payment of the
particular debt, appropriation or liability or the next maturing
installment thereof to the extent of the funds so certified as available
for such payment. The corporate authorities shall determine, in the
ordinance making that levy, what proportion of that total amount shall be
applied to the payment of the particular debt, appropriation or liability.
The municipal treasurer shall set apart that proportion of the tax,
collected and paid to him, for the payment of the particular debt,
appropriation or liability, and shall not disburse that proportion of the
tax for any other purpose until the debt, appropriation or liability has
been discharged.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-3-5) (from Ch. 24, par. 8-3-5)
Sec. 8-3-5. 
		
		All taxes levied by a municipality, except special assessments
for local improvements, shall be uniform upon all taxable property and
persons within the limits of the municipality, and no property shall be
exempt therefrom other than such property as may be exempt from taxation
under the constitution and general laws of the State.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-3-6) (from Ch. 24, par. 8-3-6)
Sec. 8-3-6. 
		
		Every municipality incorporated under a special act shall levy
and collect its taxes in the manner provided for in this Division 3 and in
the manner provided for in the General Revenue Law of this state, even
though its special act contains inconsistent provisions.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-3-7) (from Ch. 24, par. 8-3-7)
Sec. 8-3-7. 
		
		Every municipality incorporated under a special act has
the power to levy and collect annually its taxes for general purposes,
exclusive of the amounts levied (1) for the payment of bonded
indebtedness, or interest thereon, (2) for school purposes, (3) under
acts which provide that all taxes levied thereunder shall be in addition
to taxes authorized to be levied for general purposes, and (4) for the
purpose of providing general assistance for persons in need thereof as
provided in "The Illinois Public Aid Code", approved April 11, 1967, as
now or hereafter amended, at whichever of the following rates is higher:
(1) the rate specified in or allowed under its special act, or (2) a
rate which will not exceed 1% of the aggregate valuation of all property
within the municipality, subject to taxation therein, as the property
was equalized or assessed by the Department of Revenue
for the current year.
The foregoing limitations upon tax rates may be increased or
decreased according to the referendum provisions of the General Revenue
Law of Illinois.
(Source: P.A. 81-1509.)
(65 ILCS 5/8-3-7a) (from Ch. 24, par. 8-3-7a)
Sec. 8-3-7a. 
(a) Whenever a petition containing the signatures of at
least 1,000 or 10% of the registered voters, whichever is less, residing
in a municipality of 500,000 or fewer inhabitants is presented to the corporate
authorities of the municipality requesting the submission of a proposition
to levy a tax at a rate not exceeding .075% upon the value, as equalized
or assessed by the Department
of Revenue, of all property within the municipality subject to taxation,
for the purpose of financing a public transportation system for elderly
persons and persons with disabilities, the corporate authorities of such municipality
shall adopt an ordinance or resolution directing the proper election officials
to place the proposition on the ballot at the next election at which such
proposition may be voted upon.  The petition shall be filed with the corporate
authorities at least 90 days prior to the next election at which such proposition
may be voted upon.  The petition may specify whether the transportation
system financed by a tax levy under this Section is to serve only the municipality
levying such tax or specified regions outside the corporate boundaries of
such municipality in addition thereto.  The petition shall be in substantially
the following form:
We, the undersigned registered voters residing in ..... (specify the municipality),
in the County of ..... and State of Illinois, do hereby petition that the
corporate authorities of ....... (specify the municipality) be required
to place on the ballot the proposition requiring the municipality to levy an
annual tax at the rate of ...... (specify a rate not exceeding .075%) on
all taxable property in ....... (specify the municipality) for the purpose
of financing a public transportation system for elderly persons and persons with disabilities within ...... (specify the municipality and any regions outside
the corporate boundaries to be served by the transportation system).
Name.........        Address...........
State of Illinois)
)ss
County of...  )
I ........, do hereby certify that I am a registered voter, that I reside
at No....... street, in the ...... of ......... County of ......... and
State of Illinois, and that signatures in this sheet were signed in my presence,
and are genuine, and that to the best of my knowledge and belief the persons
so signing were at the time of signing the petitions registered voters,
and that their respective residences are correctly stated, as above set forth.
...................
Subscribed and sworn to me this ........... day of .......... A.D....
The proposition shall be in substantially the following form:
--------------------------------------------------------------
Shall a tax of ...... % (specify
a rate not exceeding .075%) be levied
annually on all taxable property in
......(specify the municipality) to pay     YES
the cost of operating and maintaining
a public transportation system for      -------------------
elderly persons and persons with disabilities
within........(specify the municipality      NO
and any regions outside the corporate
boundaries to be served by the
transportation system)?
--------------------------------------------------------------
If the majority of the voters of the municipality voting therein vote
in favor of the proposition, the corporate authorities of the municipality
shall levy such annual tax at the rate specified in the proposition.  If
the majority of the vote is against such proposition, such tax may not be levied.
(b) Municipalities under this Section may contract with any not-for-profit
corporation, subject to the General Not for Profit Corporation Act and incorporated
primarily for the purpose of providing transportation to elderly persons and persons with disabilities, for such corporation to provide transportation-related services
for the purposes of this Section.  Municipalities should utilize where possible
existing facilities and systems already operating for the purposes outlined
in this Section.
(c) Taxes authorized under this Section may be used only for the purpose
of financing a transportation system for elderly persons and persons with disabilities 
as authorized in this Section.
(d) For purposes of this Section, "persons with disabilities" means
any individuals who, by reason of illness, injury, age, congenital malfunction,
or other permanent or temporary disability, are unable without special public
transportation facilities or special planning or design to utilize ordinary
public transportation facilities and services as effectively as persons
who are not so affected.
"Public transportation for elderly persons and persons with disabilities" means a transportation
system for persons who have mental or physical difficulty in accessing or
using the conventional public mass transportation system, or for any
other reason.
(Source: P.A. 99-143, eff. 7-27-15.)
(65 ILCS 5/8-3-8) (from Ch. 24, par. 8-3-8)
Sec. 8-3-8. 
		
		Whenever any property listed or assessed for municipal taxation
is destroyed by fire, in whole or in part, before the levy thereon of
municipal taxes, or before the municipal taxes levied thereon have been
collected, the mayor or president may rebate or remit as much of the
municipal taxes levied upon that property, as in his opinion should be
rebated or remitted because the property has been, in whole or in part,
destroyed by fire.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-3-9) (from Ch. 24, par. 8-3-9)
Sec. 8-3-9. 
		
		Whenever (1) a large portion of the taxable property of a
municipality is destroyed by fire so as to seriously impair or affect the
ability of the owners thereof to pay taxes or special assessments thereon,
and (2) an appropriation ordinance has been passed, or special improvements
ordered, before the fire, and (3) the taxes or special assessments have not
been levied or collected, the corporate authorities of that municipality
may (1) alter or repeal that appropriation ordinance, or any part thereof,
(2) order the discontinuance of the special improvements, or any of them,
(3) reduce the amount of taxes or special assessments ordered to be levied
or collected for any general or special purpose, or (4) pass a new
appropriation ordinance. This new appropriation ordinance shall have the
same force and effect as if it had been passed within the time elsewhere
prescribed by law.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-3-10) (from Ch. 24, par. 8-3-10)
Sec. 8-3-10. 
		
		No municipality shall receive from the county treasury of any
county in which the municipality is situated in whole or in part, any
greater proportion of the surplus of all taxes which may be collected for
county purposes, than any other municipality within the county.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-3-11) (from Ch. 24, par. 8-3-11)
Sec. 8-3-11. 
		
		No municipality shall receive from the county treasury any
greater drawback of its proportion of the taxes paid into the county
treasury of the county, in which it is situated in whole or in part, by
reason of any appropriation by the county board, for the purpose of making
and repairing roads and highways, or building and repairing bridges,
situated in the county but outside the corporate limits of the municipality
than is allowed by law to all other municipalities situated in whole or in
part in that county.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-3-12) (from Ch. 24, par. 8-3-12)
Sec. 8-3-12. 
		
		In any city having a population of less than 20,000 which is
operating under a special act and whose public schools within its corporate
limits are governed by virtue of this special act, upon a petition signed
by a majority of the electors in any territory which has been heretofore or
may be hereafter annexed to the city for general corporate purposes, the
annexed territory shall be included in and subject to the control and
government of the city for school purposes as fully as if the annexed
territory had been originally within the corporate limits of the city. The
territory, when so annexed, shall be thereby disconnected from any school
district of which it was a part prior to the annexation.
The city may levy and collect taxes for school purposes in the annexed
territory in the same manner and to the same extent as in the territory
comprised within the original corporate limits of the city.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-3-13) (from Ch. 24, par. 8-3-13)
Sec. 8-3-13. 
		
		The corporate authorities of any municipality containing
500,000 or more inhabitants may impose a tax prior to July 1, 1969, upon
all persons engaged in the municipality in the business of renting, leasing
or letting rooms in a hotel, as defined in the Hotel Operators' Occupation
Tax Act, at a rate not to exceed 1% of the gross rental receipts from the
renting, leasing or letting, excluding, however, from gross rental
receipts, the proceeds of the renting, leasing or letting to permanent
residents of that hotel and proceeds from the tax imposed under subsection
(c) of Section 13 of the Metropolitan Pier and Exposition Authority Act.
The tax imposed by a municipality under 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 that is issued by the Department to a lessor under the Hotel
Operators' Occupation Tax Act shall permit the registrant to engage in a
business that is taxable under any ordinance or resolution enacted under
this Section without registering separately with the Department under the
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 provided in this Section; 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 the Hotel Operators' Occupation Tax Act and the Uniform
Penalty and Interest Act, as fully as if the provisions contained in those
Acts  were set forth herein.
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 warrant 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
Illinois tourism tax fund.
Persons subject to any tax imposed under authority granted by this
Section may reimburse themselves for their tax liability for that tax by
separately stating the tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax imposed under the
Hotel Operators' Occupation Tax Act.
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 from which lessors 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 the municipality, less 4% 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,
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, which
shall 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 warrants to be drawn for the respective amounts
in accordance with the directions contained in the certification.
Nothing in this Section shall be construed to authorize a municipality
to impose a tax upon the privilege of engaging in any business that,
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 the expiration of the publication period provided in
Section 1-2-4 in respect to municipalities governed by that Section.
The corporate authorities of any municipality that levies a tax
authorized by this Section shall transmit to the Department of Revenue on
or not later than 5 days after the effective date of the ordinance or
resolution a certified copy of the ordinance or resolution imposing the
tax; whereupon, the Department of Revenue shall proceed to administer and
enforce this Section on behalf of the 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 the effective
date 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 the change or discontinuance.  The
amounts disbursed to any municipality under this Section shall be expended
by the municipality solely to promote tourism, conventions and other
special events within that municipality or otherwise to attract
nonresidents to visit the municipality.
Any municipality receiving and disbursing money under this Section shall
report on or before the first Monday in January of each year to the
Advisory Committee of the Illinois Tourism Promotion Fund, created by
Section 12 of the Illinois Promotion Act. The reports shall specify the
purposes for which the disbursements were made and shall contain detailed
amounts of all receipts and disbursements under this Section.
This Section may be cited as the Tourism, Conventions and Other Special
Events Promotion Act of 1967.
(Source: P.A. 87-205; 87-733; 87-895.)
(65 ILCS 5/8-3-14) (from Ch. 24, par. 8-3-14)
Sec. 8-3-14. Municipal hotel operators' occupation tax. The corporate authorities of any municipality may impose a
tax upon all persons engaged in such municipality in the business of
renting, leasing or letting rooms in a hotel, as defined in "The Hotel
Operators' Occupation Tax Act," at a rate not to exceed 6% in the City of East Peoria and in the Village of Morton and 5% in all other municipalities of the gross
rental receipts from such renting, leasing or letting, excluding, however,
from gross rental receipts, the proceeds of such renting, leasing or
letting to permanent residents of that hotel and proceeds from the tax
imposed under subsection (c) of Section 13 of the Metropolitan Pier and
Exposition Authority Act, and may provide for the administration and
enforcement of the tax, and for the collection thereof from the persons
subject to the tax, as the corporate authorities determine to be necessary
or practicable for the effective administration of the tax. The municipality may not impose a tax under this Section if it imposes a tax under Section 8-3-14a.
Persons subject to any tax imposed pursuant to authority
granted by this Section may reimburse themselves for their tax
liability for such tax by separately stating such tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax imposed under "The Hotel
Operators' Occupation Tax Act".
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.
Except as otherwise provided in this Division, the amounts collected by any municipality pursuant to this Section shall
be expended by the municipality solely to promote tourism and conventions
within that municipality or otherwise to attract nonresident overnight
visitors to the municipality.
No funds received pursuant to this Section shall be used to advertise for
or otherwise promote new competition in the hotel business.
(Source: P.A. 101-204, eff. 8-2-19.)
(65 ILCS 5/8-3-14a)
Sec. 8-3-14a. Municipal hotel use tax.
(a) The corporate authorities of any municipality may impose a
tax upon the privilege of renting or leasing rooms in a hotel within the municipality at a rate not to exceed 5% of the rental or lease payment. The corporate authorities may provide for the administration and
enforcement of the tax and for the collection thereof from the persons
subject to the tax, as the corporate authorities determine to be necessary
or practical for the effective administration of the tax.
(b) Each hotel in the municipality shall collect the tax from the person making the rental or lease payment at the time that the payment is tendered to the hotel. The hotel shall, as trustee, remit the tax to the municipality.
(c) The tax authorized under this Section does not apply to any rental or lease payment by a permanent resident of that hotel or to any payment made to any hotel that is subject to the tax
imposed under subsection (c) of Section 13 of the Metropolitan Pier and
Exposition Authority Act. A municipality may not impose a tax under this Section if it imposes a tax under Section 8-3-14. Nothing in this Section may be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by this State.
(d) Except as otherwise provided in this Division, the moneys collected by a municipality under this Section may
be expended  solely to promote tourism and conventions
within that municipality or otherwise to attract nonresident overnight
visitors to the municipality. No moneys received under this Section may be used to advertise for
or otherwise promote new competition in the hotel business.
(e) As used in this Section, "hotel" has the meaning set forth in Section 2 of the Hotel
Operators' Occupation Tax Act.
(Source: P.A. 101-204, eff. 8-2-19.)
(65 ILCS 5/8-3-14b)
(Section scheduled to be repealed on January 1, 2025)
Sec. 8-3-14b. Municipal hotel operators' tax in DuPage County. For any municipality located within DuPage County that belongs to a not-for-profit organization headquartered in DuPage County that is recognized by the Department of Commerce and Economic Opportunity as a certified local tourism and convention bureau entitled to receive State tourism grant funds, not less than 75% of the amounts collected pursuant to Section 8-3-14 shall be expended by the municipality to promote tourism and conventions within that municipality or otherwise to attract nonresident overnight visitors to the municipality, and the remainder of the amounts collected by a municipality within DuPage County pursuant to Section 8-3-14 may be expended by the municipality for economic development or capital infrastructure.
This Section is repealed on January 1, 2025.
(Source: P.A. 101-204, eff. 8-2-19; 102-699, eff. 4-19-22.)
(65 ILCS 5/8-3-14c)
(Section scheduled to be repealed on January 1, 2025)
Sec. 8-3-14c. Municipal hotel use tax in DuPage County. For any municipality located within DuPage County that belongs to a not-for-profit organization headquartered in DuPage County that is recognized by the Department of Commerce and Economic Opportunity as a certified local tourism and convention bureau entitled to receive State tourism grant funds, not less than 75% of the amounts collected pursuant to Section 8-3-14a shall be expended by the municipality to promote tourism and conventions within that municipality or otherwise to attract nonresident overnight visitors to the municipality, and the remainder of the amounts collected by a municipality within DuPage County pursuant to Section 8-3-14a may be expended by the municipality for economic development or capital infrastructure.
This Section is repealed on January 1, 2025.
(Source: P.A. 101-204, eff. 8-2-19; 102-699, eff. 4-19-22.)
(65 ILCS 5/8-3-15) (from Ch. 24, par. 8-3-15)
Sec. 8-3-15. 
The corporate authorities of each municipality shall have
all powers necessary to enforce the collection of any tax imposed and collected
by such municipality, whether such tax was imposed pursuant to its home
rule powers or statutory authorization, including but not limited to subpoena
power and the power to create and enforce liens.  No such lien shall affect
the rights of bona fide purchasers, mortgagees, judgment creditors or other
lienholders who acquire their interests in such property prior to the time
a notice of such lien is placed on record in the office of the recorder or
the registrar of titles of the county in which the property is located.
However, nothing in this Section shall permit a municipality to place a
lien upon property not located or found within its corporate boundaries.  A
municipality creating a lien may provide that the procedures for its notice
and enforcement shall be the same as that provided in the Retailers'
Occupation Tax Act, as that Act existed prior to the adoption of the State Tax Lien Registration Act, for State tax liens, and
any recorder or registrar of titles with whom a notice of such lien is
filed shall treat such lien as a State tax lien for recording purposes.
(Source: P.A. 100-22, eff. 1-1-18.)
(65 ILCS 5/8-3-16) (from Ch. 24, par. 8-3-16)
Sec. 8-3-16. 
		
		The corporate authorities of any municipality may annually
levy, for emergency services and disaster operations as defined in the
Illinois Emergency Management Agency Act, a tax not
to exceed 0.05% of the full fair cash value, as equalized or assessed by
the Department of Revenue, of all of the taxable property in the municipality
for the current year.  However, the amount collectible under a levy
shall in no event exceed 25¢ per capita.  The annual tax shall be in addition
to the amount authorized to be levied for general corporate purposes.
(Source: P.A. 87-168.)
(65 ILCS 5/8-3-17) (from Ch. 24, par. 8-3-17)
Sec. 8-3-17. 
		
		The corporate authorities of a municipality may not
impose a tax on any tuition or fees received by a public or private
post-secondary educational institution or on any student with respect to
his or her being enrolled in such an institution.  This Section is a denial
and limitation under subsection (g) of Section 6 of Article VII of the
Illinois Constitution of the power of a home rule municipality to impose a
tax in violation of this Section.
(Source: P.A. 86-1476.)
(65 ILCS 5/8-3-18)
Sec. 8-3-18. 
		
		A municipality, upon a majority vote of its governing
authority, may abate taxes levied for corporate purposes under Section 8-3-1 in
an
amount not to exceed 50% of the donation by a taxpayer who donates not less
than $10,000 to a qualified program.  The abatement shall not exceed the tax
extension on the taxpayer's real property for the levy year in which the
donation is made.
For purposes of this Section, "qualified program" means a facility or a
program in an area designated as a target area by the governing authority
of the municipality for the creation or expansion of job training and
counseling programs, youth day care centers, congregate housing programs
for senior adults, youth recreation programs, alcohol and drug abuse
prevention, mental health counseling programs, domestic violence shelters,
and other programs, facilities or services approved by the governing
authority as qualified programs in a target area.
(Source: P.A. 88-389.)
(65 ILCS 5/8-3-19)
Sec. 8-3-19. Home rule real estate transfer taxes.
(a) After the effective date of this amendatory Act of the 93rd General
Assembly and subject
to this Section, a home rule
municipality may impose or increase a tax or other fee on the privilege of
transferring title to real estate, on the privilege of transferring a beneficial interest
in real property, and on the
privilege of
transferring a controlling interest in a real estate entity, as the terms
"beneficial interest", "controlling interest", and "real estate entity" are
defined in Article 31 of
the Property Tax Code.  Such a tax or other fee shall hereafter be referred to as a
real estate transfer tax.
(b) Before adopting a resolution
to submit the question of imposing or
increasing a real estate transfer tax to referendum,
the corporate authorities shall give public notice of and hold a public
hearing on the intent to
submit the question to referendum.  This hearing may be part of a regularly
scheduled meeting of the corporate authorities.  The
notice shall be published not more than 30 nor less than 10
days prior to the hearing in a newspaper of general circulation within the
municipality.  The notice shall be published in the following form:
Notice of Proposed (Increased) Real Estate Transfer     Tax for (commonly known name of municipality).
A public hearing on a resolution to submit to     referendum the question of a proposed (increased) real estate transfer tax for (legal name of the municipality) in an amount of (rate) to be paid by the buyer (seller) of the real estate transferred will be held on (date) at (time) at (location). The current rate of real estate transfer tax imposed by (name of municipality) is (rate).
Any person desiring to appear at the public hearing     and present testimony to the taxing district may do so.
(c) A notice that includes any information not specified and required by
this Section is an invalid notice. All hearings shall be open to the
public. At the public hearing, the corporate authorities of the
municipality shall explain the
reasons for the proposed or increased real estate transfer tax and shall permit
persons
desiring to be heard an opportunity to present testimony within reasonable
time limits determined by the corporate authorities. A copy of the proposed
ordinance shall be made
available to the general public for
inspection before the public hearing.
(d) Except as provided in subsection (i), no
 home rule municipality shall impose a new real estate transfer tax
after the
effective date of this amendatory Act of 1996 without prior approval by
referendum.  Except as provided in subsection (i), no
 home rule
municipality shall impose an increase of the rate of a current real estate
transfer tax without prior approval by referendum.  A home rule municipality
may impose a new real estate transfer tax or may increase an existing real
estate transfer tax with prior referendum
approval.  The referendum shall be
conducted as provided in subsection (e).
An existing ordinance or resolution imposing a real estate transfer tax may
be amended without approval by referendum if the amendment does not increase
the rate of the tax or add transactions on which the tax is imposed.
(e) The home rule municipality shall, by resolution, provide for submission
of the proposition to the voters.  The home rule municipality shall certify
the resolution and the proposition to the proper election officials in
accordance with the general election law.  If the proposition is to impose
a new real estate transfer tax, it shall be in substantially the following
form:  "Shall
(name of municipality) impose a real estate transfer tax at a rate of
(rate) to be paid by the buyer (seller) of the real estate transferred, with
the revenue of the proposed transfer tax to be used for (purpose)?".  If
the proposition is to increase an existing real estate transfer tax, it shall
be in
the following form:  "Shall (name of municipality) impose a real estate
transfer tax increase of (percent increase) to establish a new
transfer tax rate of (rate) to be paid by the buyer (seller) of the real
estate transferred?  The current rate of the real estate transfer tax is
(rate), and the revenue is
used for (purpose).  The revenue from the increase is to be used for
(purpose).".
If a majority of the electors voting on the proposition vote in favor of
it, the municipality may impose or increase the municipal real estate transfer
tax or fee.
(f) Nothing in this amendatory Act of 1996 shall limit the purposes for
which real estate transfer tax revenues may be collected or expended.
(g) A home rule municipality may not impose real estate
transfer taxes other than as
authorized by this Section. This Section is a denial and limitation of home
rule powers and functions under subsection (g) of Section 6 of Article VII
of the Illinois Constitution.
(h) Notwithstanding subsection (g) of this Section, any real estate
transfer taxes adopted
by a municipality at any time prior to January 17, 1997 (the effective date of
Public Act 89-701)
and any amendments to any existing real estate transfer tax ordinance adopted
after that date, in accordance with the law in effect at the time of the
adoption of the amendments,
are not preempted by this amendatory
Act of the 93rd  General Assembly.
(i)  Within 6 months after the effective date of this amendatory Act of the 95th General Assembly, by ordinance adopted without a referendum, a home rule municipality with a population in excess of 1,000,000 may increase the rate of an existing real estate transfer tax by a rate of up to $1.50 for each $500 of value or fraction thereof,  or in the alternative may impose a real estate transfer tax at a rate of up to $1.50 for each $500 of value or fraction thereof, which may be on the buyer or seller of real estate, or jointly and severally on both, for the sole purpose of providing financial assistance to the Chicago Transit Authority. All amounts collected under such supplemental tax, after fees for costs of collection, shall be provided to the Chicago Transit Authority pursuant to an intergovernmental agreement as promptly as practicable upon their receipt.  Such municipality shall file a copy of any ordinance imposing or increasing such tax with the Illinois Department of Revenue and shall file a report with the Department each month certifying the amount paid to the Chicago Transit Authority in the previous month from the proceeds of such tax.
(Source: P.A. 95-708, eff. 1-18-08.)
(65 ILCS 5/Art. 8 Div. 4 heading)
DIVISION 4.  
		ISSUANCE OF BONDS
(65 ILCS 5/8-4-1) (from Ch. 24, par. 8-4-1)
Sec. 8-4-1. 
No bonds shall be issued by the corporate authorities
of any municipality until the question of authorizing such bonds has
been submitted to the electors of that municipality
provided that notice of the bond referendum, if
held before July 1, 1999,
has been given in accordance with the provisions of Section
12-5
of the Election Code in effect at the time of the bond referendum, at least
10 and not more than 45 days before the date of
the election, notwithstanding the time for publication otherwise imposed by
Section 12-5,
and approved by a
majority of the electors voting upon that question.
Notices required in connection with the submission of public questions
on or after July 1, 1999 shall be as set forth in Section 12-5 of the Election
Code.
 The clerk shall certify
the proposition of the corporate authorities to the proper election
authority who shall submit the question at an election in accordance with
the general election law, subject to the notice provisions set forth in this
Section.
Notice of any such election shall contain the amount of the bond
issue, purpose for which issued, and maximum rate of interest.
In addition to all other authority to issue bonds, the Village of Indian Head Park is authorized to issue bonds for the purpose of paying the costs of making roadway improvements in an amount not to exceed the aggregate principal amount of $2,500,000, provided that 60% of the votes cast at the general primary election held on March 18, 2014 are cast in favor of the issuance of the bonds, and the bonds are issued by December 31, 2014.
However, without the submission of the question of issuing bonds to the
electors, the corporate authorities of any municipality may authorize the
issuance of any of the following bonds:
(1) Bonds to refund any existing bonded indebtedness;
(2) Bonds to fund or refund any existing judgment     indebtedness;
(3) In any municipality of less than 500,000     population, bonds to anticipate the collection of installments of special assessments and special taxes against property owned by the municipality and to anticipate the collection of the amount apportioned to the municipality as public benefits under Article 9;
(4) Bonds issued by any municipality under Sections     8-4-15 through 8-4-23, 11-23-1 through 11-23-12, 11-26-1 through 11-26-6, 11-71-1 through 11-71-10, 11-74.3-1 through 11-74.3-7, 11-74.4-1 through 11-74.4-11, 11-74.5-1 through 11-74.5-15, 11-94-1 through 11-94-7, 11-102-1 through 11-102-10, 11-103-11 through 11-103-15, 11-118-1 through 11-118-6, 11-119-1 through 11-119-5, 11-129-1 through 11-129-7, 11-133-1 through 11-133-4, 11-139-1 through 11-139-12, 11-141-1 through 11-141-18 of this Code or 10-801 through 10-808 of the Illinois Highway Code, as amended;
(5) Bonds issued by the board of education of any     school district under the provisions of Sections 34-30 through 34-36 of The School Code, as amended;
(6) Bonds issued by any municipality under the     provisions of Division 6 of this Article 8; and by any municipality under the provisions of Division 7 of this Article 8; or under the provisions of Sections 11-121-4 and 11-121-5;
(7) Bonds to pay for the purchase of voting machines     by any municipality that has adopted Article 24 of The Election Code, approved May 11, 1943, as amended;
(8) Bonds issued by any municipality under Sections     15 and 46 of the "Environmental Protection Act", approved June 29, 1970;
(9) Bonds issued by the corporate authorities of any     municipality under the provisions of Section 8-4-25 of this Article 8;
(10) Bonds issued under Section 8-4-26 of this     Article 8 by any municipality having a board of election commissioners;
(11) Bonds issued under the provisions of "An Act to     provide the manner of levying or imposing taxes for the provision of special services to areas within the boundaries of home rule units and nonhome rule municipalities and counties", approved September 21, 1973;
(12) Bonds issued under Section 8-5-16 of this Code;
(13) Bonds to finance the cost of the acquisition,     construction or improvement of water or wastewater treatment facilities mandated by an enforceable compliance schedule developed in connection with the federal Clean Water Act or a compliance order issued by the United States Environmental Protection Agency or the Illinois Pollution Control Board; provided that such bonds are authorized by an ordinance adopted by a three-fifths majority of the corporate authorities of the municipality issuing the bonds which ordinance shall specify that the construction or improvement of such facilities is necessary to alleviate an emergency condition in such municipality;
(14) Bonds issued by any municipality pursuant to     Section 11-113.1-1;
(15) Bonds issued under Sections 11-74.6-1 through     11-74.6-45, the Industrial Jobs Recovery Law of this Code;
(16) Bonds issued under the Innovation Development     and Economy Act, except as may be required by Section 35 of that Act.(Source: P.A. 102-587, eff. 1-1-22.)
(65 ILCS 5/8-4-2) (from Ch. 24, par. 8-4-2)
Sec. 8-4-2. 
		Such question shall be in substantially the following form:
--------------------------------------------------------------
Shall  bonds  in  the  amount  of
$....... be issued by the city (or        YES
village  or  incorporated  town as
the  case  may be) of .... for the    -----------------------
purpose of ............ (state
purpose), bearing interest at the         NO
rate of not to exceed ....%?
--------------------------------------------------------------
(Source: P.A. 81-1489.)
(65 ILCS 5/8-4-3) (from Ch. 24, par. 8-4-3)
Sec. 8-4-3. 
		
		The corporate authorities of any municipality, without
submitting the question to the electors thereof for approval, may authorize
by ordinance the issuance of refunding bonds (1) to refund its bonds prior
to their maturity; (2) to refund its unpaid matured bonds; (3) to refund
matured coupons evidencing interest upon its unpaid bonds; (4) to refund
interest at the coupon rate upon its unpaid matured bonds that has accrued
since the maturity of these bonds; and (5) to refund its bonds which by
their terms are subject to redemption before maturity.
The refunding bonds may be made registerable as to principal and may
bear interest at a rate not to exceed the maximum rate authorized by the
Bond Authorization Act, as amended at the time of the making of the contract,
payable at such time and place as may be provided in the bond ordinance.
The refunding bonds shall remain valid even though one or more of the
officers executing the bonds cease to hold his or their offices before the
bonds are delivered.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been supplementary
grants of power to issue instruments in accordance with the Omnibus Bond
Acts, regardless of any provision of this Act that may appear to be or to
have been more restrictive than those Acts, (ii) that the provisions of
this Section are not a limitation on the supplementary authority granted by
the Omnibus Bond Acts, and (iii) that instruments issued under this Section
within the supplementary authority granted by the Omnibus Bond Acts are not
invalid because of any provision of this Act that may appear to be or to
have been more restrictive than those Acts.
The amendatory Acts of 1971, 1972 and 1973 are not a limit upon any
municipality which is a home rule unit.
(Source: P.A. 86-4.)
(65 ILCS 5/8-4-4) (from Ch. 24, par. 8-4-4)
Sec. 8-4-4. 
		
		The ordinance authorizing the refunding bonds shall prescribe
all details thereof and shall provide for the levy and collection of a
direct annual tax upon all the taxable property within the municipality
sufficient to pay the principal thereof and interest thereon as it matures.
This tax shall be in addition to and exclusive of the maximum of all other
taxes authorized to be levied by the municipality. Tax limitations
applicable to the municipality provided by this Code or by other Illinois
statutes shall not apply to taxes levied for payment of these refunding
bonds.
A certified copy of the bond ordinance shall be filed with the county
clerk of the county in which the municipality or any portion thereof is
situated, and shall constitute the authority for the extension and
collection of refunding bond and interest taxes as required by the
constitution.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-4-5) (from Ch. 24, par. 8-4-5)
Sec. 8-4-5. 
		
		The refunding bonds may be exchanged for the bonds to be
refunded on the basis of dollar for dollar for the par value of the bonds,
interest coupons, and interest not represented by coupons, if any. Instead
of this exchange, the refunding bonds may be sold at not less than their
par value and accrued interest. The proceeds received from their sale shall
be used to pay the bonds, interest coupons, and interest not represented by
coupons, if any. This payment may be made without any prior appropriation
therefor under Section 8-2-1 or 8-2-9.
Bonds and interest coupons which have been received in exchange or paid
shall be cancelled and the obligation for interest, not represented by
coupons, which has been discharged, shall be evidenced by a written
acknowledgment of the exchange or payment thereof.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-4-6) (from Ch. 24, par. 8-4-6)
Sec. 8-4-6. 
		
		The refunding bonds shall be of such form and denomination,
payable at such place, bear such date, and be executed by such officials as
may be provided by the corporate authorities of the municipality in the
bond ordinance. They shall mature within not to exceed 20 years from their
date, and may be made callable on any interest payment date at par and
accrued interest after notice has been given at the time and in the manner
provided in the bond ordinance.
If there is no default in payment of the principal of or interest upon
the refunding bonds, and if after setting aside a sum of money equal to the
amount of interest that will accrue on the refunding bonds, and a sum of
money equal to the amount of principal that will become due thereon, within
the next 6 months period, the treasurer and comptroller, if there is a
comptroller, of the municipality shall use the money available from the
proceeds of taxes levied for the payment of the refunding bonds in calling
them for payment, if, by their terms, they are subject to redemption.
However, a municipality may provide in the bond ordinance that, whenever
the municipality is not in default in payment of the principal of or
interest upon the refunding bonds and has set aside the sums of money
provided in this paragraph for interest accruing and principal maturing
within the next 6 months period, the money available from the proceeds of
taxes levied for the payment of refunding bonds shall be used, first, in
the purchase of the refunding bonds at the lowest price obtainable, but not
to exceed their par value and accrued interest, after sealed tenders for
their purchase have been advertised for as may be directed by the corporate
authorities thereof.
Refunding bonds called for payment and paid or purchased under this
section shall be marked paid and cancelled.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-4-7) (from Ch. 24, par. 8-4-7)
Sec. 8-4-7. 
		
		Whenever any refunding bonds are purchased or redeemed and
cancelled, as provided in Section 8-4-6, the taxes thereafter to be
extended for payment of the principal of and the interest on the remainder
of the issue shall be reduced in an amount equal to the principal of and
the interest that would have thereafter accrued upon the refunding bonds so
cancelled. A resolution shall be adopted by the corporate authorities of
the municipality finding these facts. A certified copy of this resolution
shall be filed with the county clerk specified in Section 8-4-4. Whereupon
the county clerk shall reduce and extend such tax levies in accordance
therewith.
Whenever refunding bonds are issued, proper reduction of taxes,
theretofore levied for the payment of the bonds refunded and next to be
extended for collection, shall be made by the county clerk upon receipt of
a certificate signed by the treasurer and the comptroller, if there is a
comptroller, of the municipality, showing the bonds refunded and the tax to
be abated.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-4-8) (from Ch. 24, par. 8-4-8)
Sec. 8-4-8. 
		
		Money which becomes available from taxes that were levied for
prior years for payment of bonds or interest coupons that were paid or
refunded before these taxes were collected, after payment of all warrants
that may have been issued in anticipation of these taxes, shall be placed
in the sinking fund account provided in this section. It shall be used to
purchase, call for payment, or to pay at maturity refunding bonds and
interest thereon as provided in Sections 8-4-3 through 8-4-9.
Money received from the proceeds of taxes levied for the payment of the
principal of and interest upon refunding bonds shall be deposited in a
special fund of the municipality. It shall be designated as the "Refunding
Bond and Interest Sinking Fund Account of ....." This fund shall be
faithfully applied to the purchase or payment of refunding bonds and the
interest thereon as provided in Sections 8-4-3 through 8-4-9.
If the money in this fund is not immediately necessary for the payment
or redemption of refunding bonds or if refunding bonds can not be purchased
before maturity, then, under the direction of the corporate authorities of
the municipality, the money may be invested by the treasurer and the
comptroller, if there is a comptroller, of the municipality, in bonds or
other interest bearing obligations of the United States or in bonds of the
State of Illinois or in general obligation bonds of the issuing
municipality.
The maturity date of the securities in which this money is invested
shall be prior to the due date of any issue of refunding bonds of the
investing municipality. The corporate authorities may sell these securities
whenever necessary to obtain cash to meet bond and interest payments.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-4-9) (from Ch. 24, par. 8-4-9)
Sec. 8-4-9. 
		
		The corporate authorities of a municipality may take any action
that may be necessary to inform the owners of unpaid bonds regarding the
financial condition of the municipality, the necessity of refunding its
unpaid bonds and readjusting the maturities thereof in order that
sufficient taxes may be collected to take care of these bonds, and thus
re-establish the credit of the municipality. The corporate authorities may
enter into any agreement required to prepare and carry out any refunding
plan and, without any previous appropriation therefor under Section 8-2-1
or 8-2-9, may incur and pay expenditures that may be necessary in order to
accomplish the refunding of the bonds of the municipality.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-4-10) (from Ch. 24, par. 8-4-10)
Sec. 8-4-10. 
		
		Sections 8-4-3 through 8-4-10 apply to all municipalities,
whether incorporated under a general or a special act, and shall constitute
complete authority for issuing refunding bonds without reference to other
laws, and shall be construed as conferring powers in addition to, but not
as limiting powers granted under other laws or under any other provisions
of this Code.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-4-11) (from Ch. 24, par. 8-4-11)
Sec. 8-4-11. 
		
		In every municipality there shall be a sinking fund
commission, composed of the mayor or president, as the case may be, the
chairman of the finance committee, and the comptroller, or if there is no
comptroller, the municipal clerk.
Sections 8-4-11 and 8-4-12 shall not be applicable to the refunding bond
and interest sinking fund account provided for in Section 8-4-8.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-4-12) (from Ch. 24, par. 8-4-12)
Sec. 8-4-12. 
		
		Whenever there is a sum in the municipality's sinking fund in
excess of the amount required for the payment of the municipality's bonded
indebtedness maturing in that, or the succeeding, fiscal year, and the
interest due in that period, the sinking fund commission may use this
excess in the purchase of unpaid bonds for the payment of which, at
maturity, the sinking fund was or shall be created, paying therefor no more
than the market price. When such bonds are so purchased, they shall be
cancelled, and thereafter no taxes for the payment of those bonds or the
interest thereon shall be levied. The money in a municipality's sinking
fund may be applied to the payment of such bonds without any further
appropriation by the municipality than is made under this section.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-4-13) (from Ch. 24, par. 8-4-13)
Sec. 8-4-13. 
		
		Every municipality incorporated by and operating under a
special charter may borrow money upon the credit of the municipality for
lawful corporate purposes, including the funding and refunding of any
judgment indebtedness heretofore or hereafter incurred, and may issue its
negotiable coupon bonds therefor in such form, of such denomination,
payable at such place and at such time or times, not exceeding 20 years
from their date, as the corporate authorities of the municipality may
prescribe by ordinance.
Every such municipality, prior to or at the time of issuing its bonds
under this section, shall provide for the collection of a direct annual tax
upon all of the taxable property of the municipality, which, in addition to
all other taxes, shall be sufficient to pay the interest on the bonds as it
falls due and also to pay the principal of the bonds within 20 years from
their date.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-4-14) (from Ch. 24, par. 8-4-14)
Sec. 8-4-14. 
		
		Without submitting the question to the legal voters thereof
for approval the corporate authorities of any municipality having a
population of less than 500,000 may by ordinance authorize the issue of
refunding revenue bonds, payable solely from the revenues of a
municipally-owned water utility, combined water and sewer utility, sewer
utility, gas utility, swimming pool or airport, to refund the principal or
accrued interest, or both, of its outstanding revenue bonds, revenue
certificates of indebtedness or revenue notes, prior to their maturity, and
the principal and accrued interest of its matured outstanding revenue
bonds, revenue certificates of indebtedness or revenue notes issued under
the provisions of any law of this State, and which by their terms are
payable solely from the revenues of a municipally-owned water utility,
combined water and sewer utility, sewer utility, gas utility, swimming pool
or airport. The refunding revenue bonds may be made registerable as to
principal and bear interest at a rate not to exceed
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract, payable at such time or at
such place as may be provided for in the ordinance authorizing the issue
thereof.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been supplementary
grants of power to issue instruments in accordance with the Omnibus Bond
Acts, regardless of any provision of this Act that may appear to be or to
have been more restrictive than those Acts, (ii) that the provisions of
this Section are not a limitation on the supplementary authority granted by
the Omnibus Bond Acts, and (iii) that instruments issued under this Section
within the supplementary authority granted by the Omnibus Bond Acts are not
invalid because of any provision of this Act that may appear to be or to
have been more restrictive than those Acts.
The amendatory Acts of 1971, 1972 and 1973 are not a limit upon any
municipality which is a home rule unit.
(Source: P.A. 86-4.)
(65 ILCS 5/8-4-15) (from Ch. 24, par. 8-4-15)
Sec. 8-4-15. 
		
		The ordinance authorizing such refunding revenue bonds shall
prescribe all the details thereof and the bonds shall be in such form and
denomination, payable at such places, bear such date and be executed by
such officials as may be provided in the bond ordinance. The ordinance also
shall determine the period of usefulness of the utility. The refunding
revenue bonds shall mature within the determined period of usefulness of
the utility and shall mature, in any event, within not to exceed 40 years
from their date, and may be made callable on any interest payment date at a
price of par and accrued interest, after notice shall be given by
publication or otherwise at any time or times and in the manner as may be
provided for in the bond ordinance.
The ordinance may contain such covenants and restrictions upon the
issuance of additional refunding revenue bonds, or revenue bonds for the
improvement and extension of such utility or facility as may be deemed
necessary or advisable for the assurance of the payment of the refunding
revenue bonds thereby authorized. Such bonds shall be payable solely from
the revenues derived from such municipally-owned utility or facility and
such bonds shall not, in any event, constitute an indebtedness of the
municipality within the meaning of any constitutional or statutory
limitation, and it shall be plainly stated on the face of each bond that it
does not constitute an indebtedness of the municipality within the meaning
of any constitutional or statutory provision or
limitation.
The validity of any refunding revenue bonds shall remain unimpaired,
although one or more of the officials executing the same shall cease to be
such officer or officers before delivery thereof, and such bonds shall have
all the qualities of negotiable instruments under the Law Merchant and
Article 3 of the Uniform Commercial Code.
(Source: P.A. 90-655, eff. 7-30-98.)
(65 ILCS 5/8-4-16) (from Ch. 24, par. 8-4-16)
Sec. 8-4-16. 
		
		If any revenue securities which are refunded are secured by an
indenture of mortgage or deed of trust, such indenture of mortgage or deed
of trust shall be properly released of record.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-4-17) (from Ch. 24, par. 8-4-17)
Sec. 8-4-17. 
		
		Whenever refunding revenue bonds are issued under this
Division 4, sufficient revenues received from the operation of the
municipally-owned utility or facility shall be set aside as collected and
be deposited in a separate fund, which shall be used only in paying the
cost of operation and maintenance of the utility or facility, providing an
adequate depreciation fund, and paying the principal of and interest upon
the revenue bonds issued that are payable by their terms only from such
revenues.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-4-18) (from Ch. 24, par. 8-4-18)
Sec. 8-4-18. 
		
		Rates charged for service and the use of the utility or
facility shall be sufficient at all times to pay the cost of operation and
maintenance, provide an adequate depreciation fund and pay the principal of
and interest upon all revenue bonds which by their terms are payable solely
from the revenues derived from the operation of the utility or facility.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-4-19) (from Ch. 24, par. 8-4-19)
Sec. 8-4-19. 
		
		Any holder of a bond or bonds, or of any of the coupons of any
bond or bonds of a municipality issued under Sections 8-4-14 through
8-4-23, may in any civil action, mandamus, injunction or other proceeding,
enforce and
compel performance of all duties required by this Division 4, including the
maintaining and collecting of sufficient rates for that purpose and the
application of income and revenue thereof.
(Source: P.A. 83-345.)
(65 ILCS 5/8-4-20) (from Ch. 24, par. 8-4-20)
Sec. 8-4-20. 
		
		After the ordinance providing for the issuance of the
refunding revenue bonds has been passed, it shall be published at least
once within 10 days after its passage in one or more newspapers published
in the municipality, or, if no newspaper is published therein, then in one
or more newspapers with a general circulation within the municipality. In
municipalities with less than 500 population in which no newspaper is
published, publication may instead be made by posting a notice in 3
prominent places within the municipality. The ordinance shall not become
effective until 10 days after its publication.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-4-21) (from Ch. 24, par. 8-4-21)
Sec. 8-4-21. 
		
		Such refunding revenue bonds may be exchanged on a basis of
par for the securities to be refunded, or such bonds may be sold at not
less than their par value and accrued interest and the proceeds received
shall be used to pay the securities which are to be refunded thereby.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-4-22) (from Ch. 24, par. 8-4-22)
Sec. 8-4-22. 
		
		The corporate authorities of any such municipality are
authorized to take any action that may be necessary to inform owners of
outstanding securities regarding the financial condition of the fund out of
which the securities are payable and the necessity of refunding the same
and readjusting the maturities thereof and the corporate authorities may
enter into any agreements required to prepare and carry out any refunding
plan, and without previous appropriation therefor under any law may incur
and pay expenditures that may be necessary in order to accomplish the
refunding of such securities.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-4-23) (from Ch. 24, par. 8-4-23)
Sec. 8-4-23. 
		
		Sections 8-4-14 through 8-4-23 constitute complete authority
for the issue of refunding revenue bonds as herein provided without
reference to any other laws or provisions of this Code and shall be
construed as conferring power in addition to but not in limitation of the
powers granted under any other existing laws or provisions of this Code.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-4-24) (from Ch. 24, par. 8-4-24)
Sec. 8-4-24. 
		
		Whenever bonds have been issued by any municipality for
the purpose of constructing an incinerator, and the corporate
authorities decide that such project is not feasible and substitute a
different method of refuse disposal, they may adopt an ordinance ordering
the submission to the electors of a proposition to use the
proceeds of such bond issue, or any balance thereof, for some other
specified municipal purpose. The clerk shall certify such question to the
proper election authority who shall submit the proposition at an election
in accordance with the general election law.
(Source: P.A. 81-1489.)
(65 ILCS 5/8-4-25) (from Ch. 24, par. 8-4-25)
Sec. 8-4-25. 
Subject to the requirements of the Bond Issue Notification
Act, any municipality is authorized to issue from time to time
full faith and credit general obligation notes in an amount not to exceed
85% of the specific taxes levied for the year during which and for which
such notes are issued, provided no notes shall be issued in lieu of tax
warrants for any tax at any time there are outstanding tax anticipation
warrants against the specific taxes levied for the year. Such notes shall
bear interest at a rate not to exceed the maximum rate authorized by the
Bond Authorization Act, as amended at the time of the making of the
contract, if issued before January 1, 1972 and not more than the maximum
rate authorized by the Bond Authorization Act, as amended at the time of
the making of the contract, if issued after January 1, 1972 and shall
mature within two years from date. The first interest payment date on any
such notes shall not be earlier than the delinquency date of the first
installment of taxes levied to pay interest and principal of such notes.
Notes may be issued for taxes levied for the following purposes:
(a) Corporate.
(b) For the payment of judgments.
(c) Public Library for Maintenance and Operation.
(d) Public Library for Buildings and Sites.
(e) (Blank).
(f) Relief (General Assistance).
In order to authorize and issue such notes, the corporate authorities
shall adopt an ordinance fixing the amount of the notes, the date
thereof, the maturity, rate of interest, place of payment and
denomination, which shall be in equal multiples of $1,000, and provide
for the levy and collection of a direct annual tax upon all the taxable
property in the municipality sufficient to pay the principal of and
interest on such notes as the same becomes due.
A certified copy of the ordinance authorizing the issuance of the
notes shall be filed in the office of the County Clerk of the county in
which the municipality is located, or if the municipality lies partly
within two or more counties, a certified copy of the ordinance
authorizing such notes shall be filed with the County Clerk of each of
the respective counties, and it shall be the duty of the County Clerk,
or County Clerks, whichever the case may be, to extend the tax therefor
in addition to and in excess of all other taxes heretofore or hereafter
authorized to be levied by such municipality.
From and after any such notes have been issued and while such notes
are outstanding, it shall be the duty of the County Clerk or County
Clerks, whichever the case may be, in computing the tax rate for the
purpose for which the notes have been issued to reduce the tax rate
levied for such purpose by the amount levied to pay the principal of and
interest on the notes to maturity, provided the tax rate shall not be
reduced beyond the amount necessary to reimburse any money borrowed from
the working cash fund, and it shall be the duty of the Clerk of the
municipality annually, not less than thirty (30) days prior to the tax
extension date, to certify to the County Clerk, or County Clerks,
whichever the case may be, the amount of money borrowed from the working
cash fund to be reimbursed from the specific tax levy.
No reimbursement shall be made to the working cash fund until there
has been accumulated from the tax levy provided for the notes an amount
sufficient to pay the principal of and interest on such notes as the
same become due.
With respect to instruments for the payment of money issued under this
Section either before, on, or after June 6, 1989 (the effective date of Public Act 86-4), it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been supplementary
grants of power to issue instruments in accordance with the Omnibus Bond
Acts, regardless of any provision of this Act that may appear to be or to
have been more restrictive than those Acts, (ii) that the provisions of
this Section are not a limitation on the supplementary authority granted by
the Omnibus Bond Acts, and (iii) that instruments issued under this Section
within the supplementary authority granted by the Omnibus Bond Acts are not
invalid because of any provision of this Act that may appear to be or to
have been more restrictive than those Acts.
(Source: P.A. 102-587, eff. 1-1-22; 102-813, eff. 5-13-22.)
(65 ILCS 5/8-4-26) (from Ch. 24, par. 8-4-26)
Sec. 8-4-26. 
		
		Subject to the requirements of the Bond Issue Notification
Act, the corporate authorities of any municipality having a board of election
commissioners may issue bonds, in such amounts as may be required for the
purpose of acquiring voting machines or electronic voting systems as
required by Sections 24-1.1 and 24A-3 of The Election Code and may levy a
direct annual tax upon all taxable property in the municipality for the
purpose of paying the principal of and interest on such bonds. The
ordinance authorizing the issuance of such bonds shall specify the total
amount of bonds to be issued, the form and denomination of the bonds, the
date they are to bear, the place where they are payable, the date or dates
of maturity, which shall not be more than 10 years from the date of
issuance, the rate of interest, and the dates on which interest is payable.
Such ordinance shall prescribe all the details of the bonds and shall
provide for the levy and collection of a direct annual tax upon all taxable
property in the municipality sufficient to pay the principal of the bonds
at maturity and the interest thereon as it falls due. Such tax is in
addition to taxes for general corporate purposes and is not included in any
statutory tax rate limitation.
(Source: P.A. 89-655, eff. 1-1-97.)
(65 ILCS 5/8-4-27)
(Section scheduled to be repealed on January 1, 2025)
Sec. 8-4-27. Municipal Water and Wastewater Funding Study Committee.
(a) The Municipal Water and Wastewater Funding Study Committee is established.
(b) The Committee shall be comprised of the following members, and the appointed members of the Committee shall be appointed to the Committee no later than 30 days after May 13, 2022 (the effective date of Public Act 102-865):
(1) The Governor, or his or her designee, who shall     serve as chairperson.
(2) The Director of the Illinois Environmental     Protection Agency, or his or her designee.
(3) The Executive Director of the Illinois Finance     Authority, or his or her designee.
(4) One member appointed by the President of the     Senate.
(5) One member appointed by the Minority Leader of     the Senate.
(6) One member appointed by the Speaker of the House     of Representatives.
(7) One member appointed by the Minority Leader of     the House of Representatives.
(8) Members appointed by the Director of the Illinois     Environmental Protection Agency as follows:
(A) one member who is a representative of a         publicly owned drinking water or wastewater utility with a service population of 25,000 or less;
(B) one member who is a representative of a         publicly owned drinking water or wastewater utility with a service population over 25,000 people to 125,000 people;
(C) one member who is a representative of a         publicly owned drinking water or wastewater utility with a service population over 125,000 people;
(D) one member who is a representative of a         statewide organization representing wastewater agencies; and
(E) one member who is a representative of a         statewide organization representing drinking water agencies.The Committee shall meet at the call of the chair. Committee members shall serve without compensation. If a vacancy occurs in the Committee membership, the vacancy shall be filled in the same manner as the original appointment for the remainder of the Committee.
(c) The Committee shall study and make recommendations concerning any needed modifications to Illinois Environmental Protection Agency and Illinois Pollution Control Board regulations and policies as they relate to municipal water and wastewater funding to ensure that the State's revolving loan fund programs account for and prioritize the following principles, to the fullest extent allowed by federal law:
(1) A community shall not be deemed ineligible for     disadvantaged community status based on size or service area of any size, with regard to special rates, loan terms, and eligibility for loan or grant funds.
(2) In determining whether a community is     disadvantaged, consideration should be given to impacts of funding on water and wastewater expenses for low-income populations.
(3) In determining whether a community is eligible     for funds and special rates or loan terms, environmental justice concepts should be considered.
(4) In determining how funding is allocated, a     community facing water supply shortages should be considered a high priority based on urgency of need.
(5) The funding programs should promote formation and     implementation of regional water partnerships.
(6) Targeted funding should be provided for     addressing emerging contaminants, including PFAS.
(7) In determining eligibility for assistance, the     role that the State revolving fund programs play for small communities should be understood and fully considered.
(8) Any recommendations for changes to the programs     must be fully consistent with federal law and must not adversely affect any community's eligibility for loans under federal law.
(d) The Committee shall prepare a report that summarizes its work and makes recommendations resulting from its study. The Committee shall submit the report of its findings and recommendations to the Governor and the General Assembly no later than March 1, 2024. Once the Committee has submitted the report to the General Assembly and Governor, the Committee is dissolved.
(e) This Section is repealed on January 1, 2025.
(Source: P.A. 102-865, eff. 5-13-22; 103-154, eff. 6-30-23; 103-316, eff. 7-28-23.)
(65 ILCS 5/Art. 8 Div. 4.1 heading)
DIVISION 4.1.  
		MUNICIPAL BOND REFORM ACT
(65 ILCS 5/8-4.1-1) (from Ch. 24, par. 8-4.1-1)
Sec. 8-4.1-1. 
		
		This Division shall be known
and may be cited as the "Municipal Bond Reform Act."
(Source: P.A. 85-158.)
(65 ILCS 5/8-4.1-2) (from Ch. 24, par. 8-4.1-2)
Sec. 8-4.1-2. 
		
		In addition to other words and terms as
defined in this Code, the following words or terms shall as used in this
Division have the meanings set forth opposite each unless the context or
usage clearly indicates that another meaning is intended.
"Applicable Law" means any provision of this Code or any other provision
of law authorizing municipalities to issue Bonds.
"Backdoor Referendum" means the submission of a public question to the
voters of a municipality, initiated by a petition of voters or residents or
property owners of such municipality, to determine whether an action by the
corporate authorities of such municipality shall be effective, adopted or rejected.
"Bonds" means any instrument evidencing the obligation to pay money
authorized or issued by or on behalf of a municipality under Applicable Law
including, without limiting the generality of the foregoing, bonds, notes,
installment or financing contracts, leases, certificates, tax anticipation
warrants or notes, vouchers, or any evidence of indebtedness.
"General Obligation Bonds" means Bonds of a municipality for the payment
of which the municipality is empowered to levy ad valorem property taxes
upon all taxable property in the municipality without limitation as to rate or amount.
"Municipality" for the purpose of this Division also includes water
commissions under Division 135 of Article 11 of this Code or any other entity
created by intergovernmental agreement and comprised solely of cities,
villages, or incorporated towns.
"Revenue Bonds" means any Bonds of a municipality other than General Obligation Bonds.
(Source: P.A. 85-158.)
(65 ILCS 5/8-4.1-3) (from Ch. 24, par. 8-4.1-3)
Sec. 8-4.1-3. 
		
		The provisions of this Act are intended to be
supplemental and in addition to all other power or authority granted to
municipalities, shall be construed liberally and shall not be construed as
a limitation of any power or authority otherwise granted.
(Source: P.A. 85-158.)
(65 ILCS 5/8-4.1-4) (from Ch. 24, par. 8-4.1-4)
Sec. 8-4.1-4. 
		
		Whenever Applicable Law provides that the authorization
or the issuance of Bonds, or the becoming effective of an ordinance or
resolution providing for the authorization or issuance of Bonds, may be
subject to a backdoor referendum, the provisions of this Section may be
used as an alternative to the specific procedures as otherwise set forth by
Applicable Law.
A.  The corporate authorities may adopt an authorizing ordinance
describing briefly the authority under which Bonds are proposed to be
issued, the nature of the project or purpose to be financed, the estimated
total costs of the project or purpose, including in such costs
all items related to financing the project or purpose, and the maximum
amount of Bonds authorized to be issued to pay such costs.  No further
details or specifications are required in such authorizing ordinance.  Such
authorizing ordinance, along with any other notice as required by
Applicable Law, including any notice as to the right of electors to file a
petition and the number of voters required to sign any such
petition, shall be published or posted as required by Applicable Law.  A
petition may be filed after such publication or posting during the period
as provided by Applicable Law; but upon the expiration of any such period,
the corporate authorities shall be authorized to issue such Bonds as if
they had followed all necessary procedures set forth in such Applicable Law.
B. If no petition meeting the requirements of the Applicable Law is
filed during the petition period hereinabove referred to, then the
corporate authorities may adopt additional ordinances or proceedings
supplementing or amending the authorizing ordinance so long as the maximum
amount of Bonds as set forth in the authorizing ordinance hereinabove
provided for is not exceeded, and there is no material change in the
project or purpose described in the authorizing ordinance.  Such additional
ordinances or proceedings shall in all instances become effective
immediately without publication or posting or any further act or
requirement.  The authorizing ordinance, together with such additional
ordinances or proceedings, shall constitute complete authority for the
issuance of such Bonds under the Applicable Law.
(Source: P.A. 85-158.)
(65 ILCS 5/8-4.1-5) (from Ch. 24, par. 8-4.1-5)
Sec. 8-4.1-5. 
		
		The corporate authorities may provide for a reserve fund
solely for the payment of the principal of and interest on Bonds.  Bond
proceeds may be used to provide such reserve fund.
(Source: P.A. 85-158.)
(65 ILCS 5/8-4.1-6) (from Ch. 24, par. 8-4.1-6)
Sec. 8-4.1-6. 
		
		The corporate authorities are
authorized and may covenant and contract with the holders of Revenue Bonds
to levy, charge and collect moneys pledged as security for the payment of
Revenue Bonds in amounts sufficient to provide for the prompt payment of
the principal of and interest on such Bonds, and to provide an additional
amount of money, as debt service coverage, computed as a percentage of the
amount of principal and interest scheduled to be payable in any given year.
(Source: P.A. 85-158.)
(65 ILCS 5/8-4.1-7) (from Ch. 24, par. 8-4.1-7)
Sec. 8-4.1-7. 
		
		The proceeds of Bonds may be used
to provide for the payment of interest upon such Bonds for a period not to
exceed the greater of 2 years or a period ending 6 months after the
estimated date of completion of the acquisition and construction of the
project or accomplishment of the purpose for which such Bonds are issued.
In addition it shall be lawful for the corporate authorities of any
municipality issuing Bonds to appropriate money for the purpose of paying
interest on such Bonds during the period described above.  Such
appropriation may be made in the ordinance authorizing such Bonds and shall
be fully effective upon the effective date of such ordinance without any
further notice, publication or approval whatsoever.
(Source: P.A. 85-158.)
(65 ILCS 5/8-4.1-8) (from Ch. 24, par. 8-4.1-8)
Sec. 8-4.1-8. 
		
		Bonds authorized by
Applicable Law may be issued in one or more series, bear such date or
dates, become due at such time or times within the period of years provided
by Applicable Law, bear interest payable at such intervals and at such rate
or rates as authorized under Section 2 of "An Act to authorize public
corporations to issue bonds, other evidences of indebtedness and tax
anticipation warrants subject to interest rate limitations set forth
therein," approved May 26, 1970, as now or hereafter amended, which rates
may be fixed or variable, be in such denominations, be in such form, either
coupon or registered or book-entry, carry such conversion, registration, and
exchange privileges, be subject to defeasance upon such terms, have such
rank or priority, be executed in such manner, be payable in such medium of
payment at such place or places within or without the State of Illinois, be
subject to such terms of redemption with or without premium, and be sold in
such manner at private or public sale and at such price as the corporate
authorities shall determine.  Whenever such bonds are sold at a price less
than par, they shall be sold at such price and bear interest at such rate
or rates such that the net interest rate received upon the sale of such
Bonds does not exceed the maximum rate determined under Section 2 of "An
Act to authorize public corporations to issue bonds, other evidences of
indebtedness and tax anticipation warrants subject to interest rate
limitations set forth therein", approved May 26, 1970, as now or hereafter
amended.
(Source: P.A. 85-158.)
(65 ILCS 5/8-4.1-9) (from Ch. 24, par. 8-4.1-9)
Sec. 8-4.1-9. 
		
		Any redemption premium
payable upon the redemption of Bonds may be payable from the proceeds of
refunding Bonds which may be issued under Applicable Law for the purpose of
refunding such Bonds, from any other lawfully available source or from both
proceeds and such other sources.
(Source: P.A. 85-158.)
(65 ILCS 5/8-4.1-10) (from Ch. 24, par. 8-4.1-10)
Sec. 8-4.1-10. 
		
		In addition to the
authority otherwise available to invest funds, corporate authorities may
authorize and upon such authorization the Treasurer of any municipality may
invest proceeds of Bonds or money on deposit in any debt service or reserve
fund or account relating to Bonds in obligations the interest upon which is
tax exempt under the provisions of Section 103 of the Internal Revenue Code
of 1986, as amended, or successor code or provision, subject to such
tax-exempt obligations being rated at the time of purchase within the 4
highest general classifications established by a rating service of
nationally recognized expertise in rating bonds of states and the political
subdivisions thereof.
(Source: P.A. 85-158.)
(65 ILCS 5/8-4.1-11) (from Ch. 24, par. 8-4.1-11)
Sec. 8-4.1-11. 
		
		A municipality may pledge, as
security for the payment of its Bonds, (a) revenues
derived from the operation of any
utility system or revenue producing enterprise; (b) moneys deposited or to
be deposited in any special fund of the municipality; (c) grants or other
revenues expected to be received by the municipality from the state or
federal government; (d) special assessments to be collected with respect to
a local improvement financed with the proceeds of Bonds; or (e) payments to
be made by another unit of local government pursuant to a service agreement
with the municipality.
Any such pledge made by a municipality shall be valid and binding from
the time such pledge is made.  The revenues, moneys and other funds so
pledged and thereafter received by the municipality shall immediately be
subject to the lien of such pledge without any physical delivery thereof or
further act; and, subject only to the provisions of prior agreements, the
lien of such pledge shall be valid and binding as against all parties
having claims of any kind in trust, contract
or otherwise against the municipality irrespective of whether such parties
have notice thereof.  No ordinance, resolution, trust agreement or other
instrument by which such pledge is created need be filed or recorded;
except in the records of the municipality.
(Source: P.A. 85-158.)
(65 ILCS 5/8-4.1-12) (from Ch. 24, par. 8-4.1-12)
Sec. 8-4.1-12. 
		
		Bonds which are issued in part pursuant to this Act may
contain a recital to that effect and any such recital shall be conclusive
as against the municipality and the corporate authorities thereof and any
other person as to the validity of the Bonds and as to their compliance
with the provisions of this Act.
(Source: P.A. 85-158.)
(65 ILCS 5/Art. 8 Div. 5 heading)
DIVISION 5.  
		DEBT LIMITS IN MUNICIPALITIES OF LESS THAN 500,000
(65 ILCS 5/8-5-1) (from Ch. 24, par. 8-5-1)
Sec. 8-5-1. 
		
		Except as hereinafter provided in this Division 5, no municipality
having a population of less than 500,000 shall become indebted in any
manner or for any purpose, to an amount, including existing indebtedness
in the aggregate exceeding 8.625% on the value of the taxable property
therein, to be ascertained by the last assessment for state and county
purposes, previous to the incurring of the indebtedness or, until January
1, 1983, if greater, the sum that is produced by multiplying the municipality's
1978 equalized assessed valuation by the debt limitation percentage in effect
on January 1, 1979.
The indebtedness limitation set forth in this Section may be
inapplicable to indebtedness incurred for the purpose of pumping water from
Lake Michigan to one or more municipalities having a population of less
than 500,000, whether before or after such indebtedness is incurred, if the
majority of voters in such municipality approve such inapplicability at an
election on the issue held in accordance with the general election law.
The governing authority of any such municipality may, by proper ordinance
or resolution, cause the proposition of the inapplicability of the
limitation of indebtedness set forth in this Section to the indebtedness
incurred for such purpose to be certified to the proper election
authorities and submitted to the voters of the municipality at a regularly
scheduled election in accordance with the general election law.
If a majority of the votes cast on the
proposition are in favor thereof, indebtedness incurred for the purpose of
pumping water from Lake Michigan to one or more municipalities shall not be
subject to the limitation set forth in this Section.
The indebtedness limitation set forth in this Section shall not apply
to any indebtedness of any municipality incurred to finance the cost of the
acquisition, construction or improvement of water or wastewater treatment
facilities mandated by an enforceable compliance schedule developed in
connection with the federal Clean Water Act or a compliance order issued
by the United States
Environmental Protection Agency or the Illinois Pollution Control Board.
Any village or incorporated town may provide by resolution, and any
city may provide by ordinance, for the taking of a census of the
population thereof in order to determine the number of that population
for any purpose of this Division 5. The courts in this state shall take
judicial notice of the population of any municipality as it appears from
the latest municipal census so taken. However, no municipal census shall
be taken by the authority of this section, oftener than once in 3 years.
The amendatory Act of 1973 is not a limit upon any municipality
which is a home rule unit.
(Source: P.A. 85-925.)
(65 ILCS 5/8-5-2) (from Ch. 24, par. 8-5-2)
Sec. 8-5-2. 
		
		The limitation prescribed in Section 8-5-1 shall not apply to
any indebtedness of any municipality incurred in connection with the
issuance of funding bonds.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-5-15) (from Ch. 24, par. 8-5-15)
Sec. 8-5-15. 
		
		In a city or village having a population of less than 500,000, a
petition, signed by electors of the city or village equal in number to
not less than 10% of the number of votes cast for the candidates for
mayor or president at the last preceding general municipal election at
which a mayor or president was elected, may be presented to the
corporate authorities of such a city or village asking that the
question, whether that city or village shall incur additional
indebtedness for the construction of impounding dams and artificial
lakes for water supply purposes, together with the land and equipment
necessary and incidental thereto, be submitted to the electors of that
city or village. Thereupon, this question shall be certified by the clerk
to the proper election authority and submitted at
an election in accordance with the general election law.
This question shall be in substantially the following form:
--------------------------------------------------------------
Shall the city (or village) of.... incur
additional indebtedness for the construction        YES
of impounding dams and artificial lakes for     --------------
water supply purposes, together with the land       NO
and equipment necessary and incidental thereto?
--------------------------------------------------------------
If a majority of the votes cast on this question are in the
affirmative, the additional indebtedness for water supply purposes is
approved.
(Source: P.A. 81-1489.)
(65 ILCS 5/8-5-16) (from Ch. 24, par. 8-5-16)
Sec. 8-5-16. 
		
		The corporate authorities of any municipality which is not
a home rule unit under the Constitution of 1970 are authorized to issue
the bonds of such municipality without referendum subject to the limitation
contained herein and the requirements of the Bond Issue Notification Act.
Such bonds shall be payable from ad valorem tax receipts.
The amount of such bonds, together with other bonds issued pursuant to this
Section and outstanding, shall not exceed at the time of issue one-half
of 1% of the assessed value of all of the taxable property located within
the municipality.
Such bonds shall be authorized by a bond ordinance adopted by the corporate
authorities of the municipality.  The bond ordinance shall make provision
for the payment of the principal of and interest on the bonds by the levy
of a direct annual irrepealable tax upon all of the taxable property within
the municipality.  A properly certified copy of the bond ordinance shall
be filed in the office of the county clerk of each county in which any portion
of the municipality is situated.  Such county clerk or clerks shall extend
the taxes levied in the bond ordinance for collection against all of the
taxable property situated within the municipality.  The taxes levied in
the bond ordinance shall be extended annually by the county clerk or clerks
without limitation as to rate or amount and such taxes shall be in addition
to and in excess of all other taxes levied or authorized to be levied by
the municipality.
Bonds heretofore or hereafter issued and outstanding which are approved
by referendum, bonds issued under this Section which have been paid in full
or for which provision for payment has been made
by an irrevocable deposit of funds in an amount sufficient
to pay the principal and interest on any such bonds to their respective maturity date,
non-referendum bonds issued pursuant to other provisions of this Code, and
bonded indebtedness assumed from another municipality, shall not operate
to limit in any way the right of the municipality to issue its non-referendum
bonds in accord with this Section.
(Source: P.A. 89-655, eff. 1-1-97.)
(65 ILCS 5/Art. 8 Div. 6 heading)
DIVISION 6.  
		WORKING CASH FUND IN
MUNICIPALITIES OF 500,000 OF MORE
(65 ILCS 5/8-6-1) (from Ch. 24, par. 8-6-1)
Sec. 8-6-1. 
		
		In each municipality with a population of more than 500,000, a
fund to be known as a working cash fund may be created, set apart,
maintained, and administered in the manner prescribed in this Division 6,
for the purpose of enabling the municipality to have in its treasury at all
times sufficient money to meet demands thereon for ordinary and necessary
expenditures for corporate purposes and payment of corporate liabilities.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-6-2) (from Ch. 24, par. 8-6-2)
Sec. 8-6-2. 
		
		For the purpose of creating a working cash fund, the corporate
authorities may incur an indebtedness and issue bonds therefor in an amount
not exceeding in the aggregate $20,000,000 in addition to all bonded
indebtedness authorized for that purpose prior to July 1, 1949.
These bonds shall bear interest at a rate of not more than
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract,
and shall mature within 20 years from the date thereof. The corporate
authorities may provide that the ordinance authorizing the issuance of
these bonds shall be operative and valid without the submission thereof to
the electors of the municipality for approval in accordance with the
requirements of Sections 8-4-1 and 8-4-2. The corporate authorities before
or at the time of issuing these bonds, shall provide for the collection of
a direct annual tax upon all the taxable property in the issuing
municipality, sufficient to pay and discharge the principal thereof at
maturity and to pay the interest thereon as it falls due. The amendatory
Acts of 1971, 1972 and 1973 are not a limit upon any municipality which is
a home rule unit.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been supplementary
grants of power to issue instruments in accordance with the Omnibus Bond
Acts, regardless of any provision of this Act that may appear to be or to
have been more restrictive than those Acts, (ii) that the provisions of
this Section are not a limitation on the supplementary authority granted by
the Omnibus Bond Acts, and (iii) that instruments issued under this Section
within the supplementary authority granted by the Omnibus Bond Acts are not
invalid because of any provision of this Act that may appear to be or to
have been more restrictive than those Acts.
(Source: P.A. 86-4.)
(65 ILCS 5/8-6-3) (from Ch. 24, par. 8-6-3)
Sec. 8-6-3. 
		
		For the purpose of providing money for such a working
cash fund, the corporate authorities also have the power to levy
annually, upon all the taxable property in the municipality, a tax of
not to exceed .05% upon the value, as equalized or assessed by the
Department of Revenue, of that property for purposes of
taxation for the year in which each such levy is made.
The collection of this tax shall not be anticipated by the issuance
of any warrants drawn against the tax. This tax shall be levied and
collected, except as otherwise provided in this Section, in like manner
as are the general taxes of the collecting municipality. It shall be
known as the working cash fund tax and shall be in addition to the
maximum of all other taxes which that municipality is now, or may be
hereafter, authorized by law to levy upon the taxable property within
the municipality.
This tax may be levied by a separate ordinance prior to March 28 in
each year. This tax may be levied for the purpose specified in this
Section without any appropriation thereof being made in the annual or
supplemental appropriation ordinance.
No tax shall be levied under this Section if the municipality has
previously issued the maximum amount of bonds permitted under Section
8-6-2.
(Source: P.A. 81-1509.)
(65 ILCS 5/8-6-4) (from Ch. 24, par. 8-6-4)
Sec. 8-6-4. 
		
		All money received from the issuance of bonds as
authorized in Section 8-6-2, or from any tax levied pursuant to the
authority granted by Section 8-6-3, shall be set apart in the specified
working cash fund by the municipal treasurer and shall be used only for
the purposes and in the manner provided in this section. The fund and
the money therein shall not be regarded as current assets available for
appropriation and shall not be appropriated by the corporate authorities
in the annual appropriation ordinance.
The corporate authorities may appropriate moneys to the working cash
fund up to the maximum amount allowable in the fund, and the working cash
fund may receive such appropriations and any other contributions.
In order to provide money with which to meet ordinary and necessary
disbursements for salaries and other corporate purposes, the fund may be
transferred in whole or in part to the general corporate fund of the
municipality and so disbursed therefrom in anticipation of the
collection of any taxes lawfully levied for general corporate purposes,
or in the anticipation of such taxes, as by law now or hereafter enacted
or amended, imposed by the General Assembly of the State of Illinois to
replace revenue lost by units of local government and school districts as
a result of the abolition of ad valorem personal property taxes, pursuant
to Article IX, Section 5(c) of the Constitution of the State of Illinois.
Money so transferred to the general corporate fund shall be deemed to
have been transferred in anticipation of the collection of that part of
the taxes so levied or to be received which is in excess of the amount required
to pay any
tax anticipation warrants, and the interest thereon.
Taxes levied for general corporate purposes, when collected, shall be
applied first to the payment of tax anticipation warrants or notes and the
interest thereon, and then to the reimbursement of the working cash
fund.
Upon the receipt by the municipal treasurer of any taxes, in
anticipation of the collection of which, money in the working cash fund
has been so transferred for disbursement, the fund shall be immediately
reimbursed therefrom until the full amount so transferred has been
retransferred to the fund.
(Source: P.A. 85-459.)
(65 ILCS 5/8-6-5) (from Ch. 24, par. 8-6-5)
Sec. 8-6-5. 
		
		Money shall be transferred from the working cash fund to
the general corporate fund only upon the authority of the corporate
authorities who, from time to time by a separate ordinance, shall direct
the municipal treasurer to make a transfer of such sums as may be
required for the purposes authorized in this Division 6. That ordinance
shall set forth (1) the taxes in anticipation of the collection of which
the transfer is to be made and from which the working cash fund is to be
reimbursed, (2) the entire amount of taxes extended, or which the
corporate authorities estimate will be extended, or received, for any
particular year in anticipation of the collection of all or part of
which the transfer is to be made, (3) the aggregate amount of warrants
or notes theretofore issued in anticipation of the collection of these
taxes together with the amount of the interest which has accrued and
which, the corporate authorities estimate, will accrue thereon, (4)
the aggregate amount of receipts from taxes imposed to replace revenue
lost by units of local government and school districts as a result of the
abolition of ad valorem personal property taxes, pursuant to Article IX,
Section 5(c) of the Constitution of the State of Illinois, which the corporate
authorities estimate will be set aside for the payment of the proportionate
amount of debt service and pension or retirement obligations, as required by
Section 12 of "An Act in relation to State Revenue Sharing with local
government
entities", approved July 31, 1969, as amended, and (5)
the aggregate amount of money theretofore transferred from the working
cash fund to the general corporate fund in anticipation of the
collection of such taxes. The amount which that ordinance shall direct
the treasurer so to transfer in anticipation of the collection of taxes
levied or to be received for any particular year, together with the
aggregate amount of such tax anticipation warrants or notes theretofore
drawn against such taxes and the amount of the interest accrued and
estimated to accrue thereon,
the amount estimated to be required to satisfy debt service and pension
or retirement obligations, as set forth in Section 12 of "An Act in relation
to State revenue sharing with local government entities", approved July
31, 1969, as amended,
and the aggregate amount of such transfers
theretofore made in anticipation of the collection of these taxes, shall
not exceed 90% of the actual or estimated amount of such taxes extended
or to be extended or to be received as set forth in that ordinance.
If money is available in the working cash fund, it shall be
transferred to the general corporate fund and disbursed for the payment
of salaries and other corporate expenses so as to avoid, whenever
possible, the issuance of tax anticipation warrants or notes.
(Source: P.A. 81-1506.)
(65 ILCS 5/8-6-6) (from Ch. 24, par. 8-6-6)
Sec. 8-6-6. 
		
		Any person holding an office, trust, or employment under a
municipality with a population of more than 500,000, who is guilty of the
wilful violation of any of the provisions of this Division 6 shall be
guilty of a business offense and shall be fined not exceeding $10,000, and
shall forfeit his right to his office, trust, or employment and shall be
removed therefrom.  Any such person shall be liable for any sum that he
unlawfully diverted from the specified working cash fund, or otherwise
used, and that sum may be recovered by the municipality, or by any taxpayer
in the name and for the benefit of the municipality,  in a civil action.
Such a taxpayer, however, shall file a bond for all costs
and shall be liable for all costs taxed against the municipality in such a
suit, and judgment shall be rendered accordingly.  But nothing in this
Section shall bar other remedies.
(Source: P.A. 79-1361.)
(65 ILCS 5/Art. 8 Div. 7 heading)
DIVISION 7.  
		WORKING CASH FUND IN MUNICIPALITIES OF LESS THAN 500,000
(65 ILCS 5/8-7-1) (from Ch. 24, par. 8-7-1)
Sec. 8-7-1. 
		
		In each municipality with less than 500,000 inhabitants, a fund
to be known as a working cash fund may be created, set apart, maintained,
and administered in the manner prescribed in this Division 7 for the
purpose of enabling the municipality to have in its treasury at all times
sufficient money to meet demands thereon for ordinary and necessary
expenditures for all general and special corporate purposes.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-7-2) (from Ch. 24, par. 8-7-2)
Sec. 8-7-2. 
		
		For the purpose of creating such a working cash fund, the
corporate authorities may incur an indebtedness and issue bonds therefor in
an amount or amounts not exceeding in the aggregate $700,000.
These bonds shall bear interest at a rate of not more than
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract,
and shall mature within 20 years from the date thereof. The corporate
authorities may provide that the ordinance authorizing the issue of these
bonds shall be operative and valid without the submission thereof to the
electors of the municipality for approval in accordance with the
requirements of Sections 8-4-1 and 8-4-2 and the requirements of the Bond
Issue Notification Act. The corporate authorities, before
or at the time of issuing these bonds, shall provide for the collection of
a direct annual tax upon all the taxable property in the issuing
municipality, sufficient to pay and discharge the principal thereof at
maturity and to pay the interest thereon as it falls due. The amendatory
Acts of 1971, 1972 and 1973 are not a limit upon any municipality which is
a home rule unit.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been supplementary
grants of power to issue instruments in accordance with the Omnibus Bond
Acts, regardless of any provision of this Act that may appear to be or to
have been more restrictive than those Acts, (ii) that the provisions of
this Section are not a limitation on the supplementary authority granted by
the Omnibus Bond Acts, and (iii) that instruments issued under this Section
within the supplementary authority granted by the Omnibus Bond Acts are not
invalid because of any provision of this Act that may appear to be or to
have been more restrictive than those Acts.
(Source: P.A. 89-655, eff. 1-1-97.)
(65 ILCS 5/8-7-3) (from Ch. 24, par. 8-7-3)
Sec. 8-7-3. 
		
		For the purpose of providing money for such a working
cash fund, the corporate authorities shall also have power to levy,
annually, upon all the taxable property in the municipality, a tax of
not to exceed .05% upon the value, as equalized or assessed by the
Department of Revenue for the year in which each such
levy is made.
The collection of this tax shall not be anticipated by the issuance
of any warrants drawn against the tax. This tax shall be levied and
collected, except as otherwise provided in this Section, in like manner
as are the general taxes of the collecting municipality. It shall be
known as the working cash fund tax and shall be in addition to the
maximum of all other taxes which that municipality is now, or may be
hereafter, authorized by law to levy upon the taxable property within
the municipality.
This tax may be levied by a separate ordinance on or before the
second Tuesday in September in each year, for the purpose specified in
this Section, without any appropriation thereof being made in the annual
or supplemental appropriation ordinance.
No tax shall be levied under this Section if the municipality has
previously issued the maximum amount of bonds permitted under Section
8-7-2.
The foregoing limitation upon tax rate may be increased or decreased
according to the referendum provisions of the General Revenue Law of
Illinois.
(Source: P.A. 81-1509.)
(65 ILCS 5/8-7-4) (from Ch. 24, par. 8-7-4)
Sec. 8-7-4. 
		
		All money received from the issuance of bonds as
authorized in Section 8-7-2, or from any tax levied pursuant to the
authority granted by Section 8-7-3, shall be set apart in the working
cash fund by the municipal treasurer and shall be used only for the
purposes and in the manner provided in this section. The fund and the
money therein shall not be regarded as current assets available for
appropriation and shall not be appropriated by the corporate authorities
in the annual appropriation ordinance.
The corporate authorities may appropriate moneys to the working cash
fund up to the maximum amount allowable in the fund, and the working cash
fund may receive such appropriations and any other contributions.
In order to provide money with which to meet ordinary and necessary
disbursements for salaries and other general and special corporate purposes,
the fund may be transferred in whole or in part to the general or special
corporate funds of the municipality, and so disbursed therefrom in anticipation
of the collection of any taxes lawfully levied for general or special corporate
purposes or, in anticipation of such taxes, as by law now or hereafter enacted
or amended, imposed by the General Assembly of the State of Illinois to
replace revenue lost by units of local government and school districts as
a result of the abolition of ad valorem personal property taxes, pursuant
to Article IX, Section 5(c) of the Constitution of the State of Illinois.
Money so transferred to the
general or special corporate funds shall be deemed to have been transferred
in anticipation of the collection of that part of the taxes so levied or
to be received which is in excess of the amount required to pay any tax
anticipation warrants, and the interest thereon.
Taxes levied for general or special corporate purposes, when
collected shall be applied first to the payment of tax anticipation
warrants or notes and the interest thereon, and then to the reimbursement of the
working cash fund.
Upon the receipt by the municipal treasurer of any taxes, in
anticipation of the collection of which money in the working cash fund has
been so transferred for disbursement, the fund shall be immediately
reimbursed therefrom until the full amount so transferred has been
retransferred to the fund. Unless the taxes so received and applied to
the reimbursement of the working cash fund, prior to the first day of
the eighth month following the month in which due and unpaid real
property taxes by law begin to bear interest, are sufficient to effect a
complete reimbursement of the fund for any money transferred therefrom
in anticipation of the collection of taxes, the working cash fund shall
be reimbursed for the amount of the deficiency therein from any other
revenues accruing to the general corporate fund, and the corporate
authorities shall provide for the immediate reimbursement of the amount
of such a deficiency in its next annual appropriation ordinance.
Any municipality holding in its working cash fund money not
immediately necessary for the purposes set forth in this Section may, by
ordinance, use such money to invest in its own bonds issued by the
municipality which represent the obligation of such municipality, or,
may use such money to invest in bonds and other interest bearing
obligations of the State of Illinois, or securities authorized for
investment in "An Act relating to certain investments of public funds by
public agencies," approved July 23, 1943, as heretofore or hereafter
amended; provided, however, that no investment authorized by this
Section 8-7-4 shall be made in bonds or interest bearing obligations
which are in default or in bonds or interest bearing obligations for
which accrued interest is due. All money realized by the municipality
from the sale or redemption of the securities authorized for investment
under this Section shall be placed in the working cash fund. Interest on
the investments may also be placed in such fund, or, if so provided in
the ordinance authorizing such investments, may be transferred in whole
or in part to the general or special corporate funds of the
municipality.
(Source: P.A. 85-459.)
(65 ILCS 5/8-7-5) (from Ch. 24, par. 8-7-5)
Sec. 8-7-5. 
		
		Money shall be transferred from the working cash fund to
the general corporate or special funds only upon the authority of the
corporate authorities, who from time to time by a separate ordinance
shall direct the municipal treasurer to make a transfer of such sums as
may be required for the purposes authorized in this Division 7. That
ordinance shall set forth (1) the taxes in anticipation of the
collection of which the transfer is to be made and from which the
working cash fund is to be reimbursed, (2) the entire amount of taxes
extended, or which the corporate authorities estimate will be extended
or received  for any particular year in anticipation of the collection
of all or part of which the transfer is to be made, (3) the aggregate
amount of warrants or notes theretofore issued in anticipation of the
collection of these taxes together with the amount of interest which has
accrued, and which, the corporate authorities estimate, will accrue
thereon, (4)
the aggregate amount of receipts from taxes imposed to replace revenue lost
by units of local government and school districts as a result of the abolition
of ad valorem personal property taxes, pursuant to Article IX, Section 5(c)
of the Constitution of the State of Illinois, which the corporate authorities
estimate will be set aside for the payment of the proportionate amount of
debt service and pension or retirement obligations, as required by
Section 12 of "An Act in relation to State Revenue Sharing with local
government
entities", approved July 31, 1969, as amended, and (5)
the aggregate amount of money theretofore transferred
from the working cash fund to such general or special corporate fund in
anticipation of the collection of such taxes. The amount which that
ordinance shall direct the treasurer so to transfer in anticipation of
the collection of taxes levied or to be received for any particular
year, together with the aggregate amount of such tax anticipation
warrants or notes theretofore drawn against such taxes and the amount of
the interest, accrued and estimated to accrue thereon,
the amount estimated to be required to satisfy debt service and pension
or retirement obligations, as set forth in Section 12 of "An Act in relation
to State revenue sharing with local government entities", approved July
31, 1969, as amended,
and the aggregate
amount of such transfers theretofore made in anticipation of the
collection of these taxes, shall not exceed 90% of the actual or
estimated amount of such taxes extended or to be extended or to be
received as set forth in that ordinance.
If money is available in the working cash fund, it shall be
transferred to such general or special corporate fund and disbursed for
the payment of salaries and other corporate expenses so as to avoid,
whenever possible, the issuance of tax anticipation warrants or notes.
(Source: P.A. 81-1506.)
(65 ILCS 5/8-7-6) (from Ch. 24, par. 8-7-6)
Sec. 8-7-6. 
		
		Any person holding an office, trust, or employment under a
municipality with less than 500,000 inhabitants, who is guilty of the
wilful violation of any of the provisions of this Division 7 shall be
guilty of a business offense and shall be fined not exceeding $10,000, and
shall forfeit his right to his office, trust, or employment, and shall be
removed therefrom.  Any such person shall be liable for any sum that he
unlawfully diverted from the specified working cash fund, or otherwise
used, and that sum may be recovered by the municipality, or by any taxpayer
in the name and for the benefit of the municipality in a civil action.
Such a taxpayer, however, shall file a bond for all costs
and shall be liable for all costs taxed against the municipality in such a
suit, and judgment shall be rendered accordingly.  But nothing in this
section shall bar other remedies.
(Source: P.A. 79-1361.)
(65 ILCS 5/8-7-7) (from Ch. 24, par. 8-7-7)
Sec. 8-7-7. 
		Abolishment of working cash fund.
(a) The corporate authority of any municipality may abolish its working cash
fund by resolution and may transfer any balance remaining in the fund,
including any interest that may have accrued, to the general corporate fund at
the end of the fiscal year.
(b) A municipality that has abolished its working cash fund may not
establish another working cash fund under this Division 7 for 4 years
after the date the fund was abolished.  Any general obligation bonds that were
previously issued for working cash purposes must be retired before a
municipality may establish another working cash fund.
(Source: P.A. 87-982.)
(65 ILCS 5/Art. 8 Div. 8 heading)
DIVISION 8.  
		AUDIT OF ACCOUNTS
(65 ILCS 5/8-8-1) (from Ch. 24, par. 8-8-1)
Sec. 8-8-1. 
		
		This Division 8 may be cited as The Illinois Municipal Auditing
Law.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-8-2) (from Ch. 24, par. 8-8-2)
Sec. 8-8-2. 
The following terms shall, unless the context otherwise indicates,
have the following meanings:
(1) "Municipality" or "municipalities" means all cities, villages
and incorporated towns having a population of less than 500,000 as
determined by the last preceding Federal census.
(2) "Corporate authorities" means a city council, village board of
trustees, library board, police and firemen's pension board, or any
other body or officers having authority to levy taxes, make
appropriations, or approve claims for any municipality.
(3) "Comptroller" means the Comptroller of the State of Illinois.
(4) (Blank).
(5) "Audit report" means the written report of the auditor or auditors and all appended statements and schedules relating thereto,
presenting or recording the findings of an examination or audit of the
financial transactions, affairs, or condition of a municipality.
(6) "Annual report" means the statement filed, in lieu of an audit
report, by the municipalities of less than 800 population, which do not
own or operate public utilities and do not have bonded debt.
(7) "Supplemental report" means the annual statement filed, in
addition to any audit report provided for herein, by all municipalities,
except municipalities of less than 800 population which do not own or
operate public utilities and do not have bonded debt.
(8) "Auditor" means a licensed certified public accountant, as that term is defined in Section 0.03 of the Illinois Public Accounting Act, or the substantial equivalent of a licensed CPA, as provided under Section 5.2 of the Illinois Public Accounting Act, who performs an audit of municipal financial statements and records and expresses an assurance or disclaims an opinion on the audited financial statements.
(9) "Generally accepted accounting principles" means accounting principles generally accepted in the United States.
(10) "Generally accepted auditing standards" means auditing standards generally accepted in the United States.
(Source: P.A. 100-837, eff. 8-13-18; 101-419, eff. 1-1-20.)
(65 ILCS 5/8-8-3) (from Ch. 24, par. 8-8-3)
Sec. 8-8-3. Audit requirements.
(a) The corporate authorities of each municipality coming under the
provisions of this Division 8 shall cause an audit of the funds and
accounts of the municipality to be made by an auditor or auditors 
employed by such municipality or by an auditor or auditors retained
by the Comptroller, as hereinafter provided.
(b) The accounts and funds of each municipality having a population of 800
or more or having a bonded debt or owning or operating any type of public
utility shall be audited annually. The audit herein required shall include
all of the accounts and funds of the municipality. Such audit shall be
begun as soon as possible after the close of the fiscal year, and shall be
completed and the report submitted within 180 days after the close of such
fiscal year, unless an extension of time shall be granted by the
Comptroller in writing. The auditor or auditors perform the audit
shall submit not less than 2 copies of the audit report to the corporate
authorities of the municipality being audited. Municipalities not operating
utilities may cause audits of the accounts of municipalities to be made
more often than herein provided, by an auditor or auditors. The audit
report of such audit when filed with the Comptroller together with an audit
report covering the remainder of the period for which an audit is required
to be filed hereunder shall satisfy the requirements of this section.
(c) Municipalities of less than 800 population which do not own or operate
public utilities and do not have bonded debt, shall file annually with the
Comptroller a financial report containing information required by the
Comptroller. Such annual financial report shall be on forms devised by the
Comptroller in such manner as to not require professional accounting
services for its preparation.
(d) In addition to any audit report required, all municipalities, except
municipalities of less than 800 population which do not own or operate
public utilities and do not have bonded debt, shall file annually with the
Comptroller a supplemental report on forms devised and approved by the
Comptroller.
(e) Notwithstanding any provision of law to the contrary, if a municipality (i) has a population of less than 200, (ii) has bonded debt in the amount of $50,000 or less, and (iii) owns or operates a public utility, then the municipality shall cause an audit of the funds and accounts of the municipality to be performed by an auditor employed by the municipality or retained by the Comptroller for fiscal year 2011 and every fourth fiscal year thereafter or until the municipality has a population of 200 or more, has bonded debt in excess of $50,000, or no longer owns or operates a public utility. Nothing in this subsection shall be construed as limiting the municipality's duty to file an annual financial report with the Comptroller or to comply with the filing requirements concerning the county clerk.
(f) All audits and reports to be filed with the Comptroller under this Section must be submitted electronically and the Comptroller must post the audits and reports on the Internet no later than 45 days after they are received.  If the municipality provides the Comptroller's Office with sufficient evidence that the audit or report cannot be filed electronically, the Comptroller may waive this requirement.  The Comptroller must also post a list of municipalities that are not in compliance with the reporting requirements set forth in this Section.
(g) Subsection (f) of this Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule municipalities of powers and functions exercised by the State.
(h) Any financial report under this Section shall include the name of the purchasing agent who oversees all competitively bid contracts. If there is no purchasing agent, the name of the person responsible for oversight of all competitively bid contracts shall be listed.
(Source: P.A. 101-419, eff. 1-1-20.)
(65 ILCS 5/8-8-3.5)
Sec. 8-8-3.5. Tax Increment Financing Report. The reports filed under
subsection (d) of Section 11-74.4-5 of the Tax Increment Allocation
Redevelopment Act and the reports filed under subsection (d) of Section
11-74.6-22 of the Industrial Jobs Recovery Law
in the Illinois Municipal Code must be separate from any
other annual report filed with the Comptroller.  The Comptroller must, in
cooperation with reporting municipalities, create
a format for the reporting of information described in paragraphs (1.5),
 (5), and (8) and
in subparagraph (G) of paragraph (7) of subsection (d) of Section
11-74.4-5 of
the Tax Increment Allocation Redevelopment Act
and the information described in paragraphs (1.5), (5), and (8) and in subparagraph
(G) of  paragraph (7) of subsection (d) of Section 11-74.6-22 of the Industrial
Jobs Recovery Law
that facilitates consistent
reporting among the reporting municipalities. The Comptroller may allow these
reports to be filed electronically and may display the report, or portions of
the report, electronically via the Internet.  All reports filed under this
Section must be made available for examination and copying by the public at all
reasonable times. A Tax Increment Financing Report must be filed electronically with the Comptroller within 180 days after the close of the municipal fiscal year or as soon thereafter as the audit for the redevelopment
project area for that fiscal year becomes available. If the Tax Increment Finance administrator provides the Comptroller's office with sufficient evidence that the report is in the process of being completed by an auditor, the Comptroller may grant an extension. If the required report is not filed within
the
time extended by the Comptroller, the Comptroller shall notify the corporate authorities of that municipality that the audit report is past due. The Comptroller may charge a municipality a fee of $5 per day for the first 15 days past due, $10 per day for 16 through 30 days past due, $15 per day for 31 through 45 days past due, and $20 per day for the 46th day and every day thereafter. These amounts may be reduced at the Comptroller's discretion. In the event the required audit report is not filed within 60 days of such notice, the Comptroller shall cause such audit to be made by an auditor or auditors. The Comptroller may decline to order an audit and the preparation of an audit report if an initial examination of the books and records of the municipality indicates that books and records of the municipality are inadequate or unavailable to support the preparation of the audit report or the supplemental report due to the passage of time or the occurrence of a natural disaster. All fees collected pursuant to this Section shall be deposited into the Comptroller's Administrative Fund. In the event the Comptroller causes an audit to be made in accordance with the requirements of this Section, the municipality shall pay to the Comptroller reasonable compensation and expenses to reimburse her for the cost of preparing or completing such report. Moneys paid to the Comptroller pursuant to the preceding sentence shall be deposited into the Comptroller's Audit Expense Revolving Fund.
(Source: P.A. 101-419, eff. 1-1-20; 102-127, eff. 7-23-21.)
(65 ILCS 5/8-8-4) (from Ch. 24, par. 8-8-4)
Sec. 8-8-4. Overdue reports.
(a) In the event the required audit report for
a municipality is not filed
with the Comptroller in accordance with Section 8-8-7 within 180 days after
the close of the fiscal year of the municipality, the Comptroller shall
notify the corporate authorities of that municipality in writing that the
audit report is due, and may also grant an extension of time of 60 days,
for the filing of the audit report. In the event the required audit report
is not filed within the time specified in such written notice, the
Comptroller shall cause such audit to be made by an auditor or auditors. In the event the required annual or supplemental report for a
municipality is not filed within 6 months after the close of the fiscal
year of the municipality, the Comptroller shall notify the corporate
authorities of that municipality in writing that the annual or supplemental
report is due and may grant an extension in time of 60 days for the filing
of such annual or supplemental report.
(b) In the event the annual or supplemental report is not filed within
the
time extended by the Comptroller, the Comptroller shall cause such annual
or supplemental report to be prepared or completed and the municipality
shall pay to the Comptroller reasonable compensation and expenses to
reimburse him for the cost of preparing or completing such annual or
supplemental report.
Moneys paid to the Comptroller pursuant to the preceding sentence shall be
deposited into the Comptroller's Audit Expense Revolving Fund.
(c) The Comptroller may decline to order an audit or the completion of the
supplemental report if an initial examination of the books and records of the
municipality indicates that books and records of the municipality are
inadequate or unavailable to support the preparation of the audit report or the
supplemental report due to the passage of time or the occurrence of a natural
disaster.
(d) The State Comptroller may grant extensions for delinquent audits or reports.  The Comptroller may charge a municipality a fee for a delinquent audit or report of $5 per day for the first 15 days past due, $10 per day for 16 through 30 days past due, $15 per day for 31 through 45 days past due, and $20 per day for the 46th day and every day thereafter. These amounts may be reduced at the Comptroller's discretion.  All fees collected under this subsection (d) shall be deposited into the Comptroller's Administrative Fund.
(Source: P.A. 101-419, eff. 1-1-20.)
(65 ILCS 5/8-8-5) (from Ch. 24, par. 8-8-5)
Sec. 8-8-5. 
(a) Prior to fiscal year 2019, the audit shall be made in accordance with generally accepted
auditing standards. Reporting on the financial position and results of
financial operations for each fund of the municipality shall be in
accordance with generally accepted accounting principles or other comprehensive basis of accounting.  Each audit report shall include only financial information,
findings, and conclusions that are adequately supported by evidence in the
auditor's working papers to demonstrate or prove, when called upon, the
basis for the matters reported and their correctness and reasonableness.
In connection with this, each municipality shall retain the right of
inspection of the auditor's working papers and shall make them available to
the Comptroller, or his or her designee, upon request.  The audit report shall
consist of the professional opinion of the auditor or auditors with
respect to the financial statements or, if an opinion cannot be expressed,
a declaration that the auditor is unable to express such opinion and an
explanation of the reasons he or she cannot do so. Municipal authorities shall not
impose limitations on the scope of the audit to the extent that the effect
of such limitations will result in the qualification of the opinion of the auditor or auditors. Each audit report filed with the Comptroller
shall be accompanied by a copy of each official statement or other offering
of materials prepared in connection with the issuance of indebtedness of
the municipality since the filing of the last audit report.
(b) For fiscal year 2019 and each fiscal year thereafter, the audit report shall include the financial statements for governmental activities, business-type activities, discretely presented component units, and each major fund and aggregated nonmajor fund. The audit report shall also include the professional opinion or opinions of the auditor or auditors with respect to the financial statements or, if an opinion cannot be expressed, a declaration that the auditor is unable to express an opinion and an explanation of the reasons he or she cannot do so. Each auditor's report shall include a representation by the auditor or auditors conducting the audit has been performed in accordance with generally accepted auditing standards. Municipal authorities shall not impose limitations on the scope of the audit to the extent that the effect of the limitations will result in the modification of the opinion or opinions of the auditor or auditors. Each audit report filed with the Comptroller shall be accompanied by a copy of each official statement or other offering of materials prepared in connection with the issuance of indebtedness of the municipality since the filing of the last audit report.
(c) For fiscal year 2019 and each fiscal year thereafter, audit reports shall contain financial statements prepared in accordance with generally accepted accounting principles and audited in accordance with generally accepted auditing standards if the last audit report filed preceding fiscal year 2019 expressed an unmodified or modified opinion by the auditor that the financial statements were prepared in accordance with generally accepted accounting principles.
(d) For fiscal year 2019 and each fiscal year thereafter, audit reports containing financial statements prepared in accordance with an other comprehensive basis of accounting may follow the best practices and guidelines outlined by the American Institute of Certified Public Accountants and shall be audited in accordance with generally accepted auditing standards. If the corporate authority of a municipality submits an audit report containing financial statements prepared in accordance with generally accepted accounting principles, thereafter all future audit reports shall also contain financial statements prepared in accordance with generally accepted accounting principles.
(e) Audits may be made on financial statements prepared using either an accrual or cash basis of accounting, depending upon the system followed by the municipality, and audit reports shall comply with this Section.
(Source: P.A. 100-837, eff. 8-13-18; 101-419, eff. 1-1-20.)
(65 ILCS 5/8-8-7) (from Ch. 24, par. 8-8-7)
Sec. 8-8-7. 
When the auditor or auditors have completed the audit,
not less than 2 copies of a report of the audit shall be made and signed by
the making such audit, and shall immediately be filed with the
municipality audited.  Each audit report shall include the certification
of the auditor or auditors making the audit that the audit has been
performed in compliance with generally accepted auditing standards.
The municipality shall immediately make one copy of
the report, or one copy of the report authorized by this Division 8 in lieu
of an audit report, a part of its public records and at all times
thereafter this copy shall be open to public inspection. In addition, the
municipality shall file one copy of the report with the Comptroller.
An audit report which fails to meet the requirements of this Act shall be
rejected by the Comptroller and returned to the municipal authorities for
corrective action.  Nothing in this Section shall be construed as
preventing a municipality, in
filing its audit report with the Comptroller, from transmitting with such
report any comment or explanation that it may desire to make concerning
that report. The audit report filed with the Comptroller, together with any
accompanying comment or explanation, shall immediately become a part of his
public records and shall at all times thereafter be open to public
inspection. It shall be unlawful for the auditor to make any disclosure
of the result of any examination of any public account excepting as he does
so directly to the corporate authorities of the municipality audited.
(Source: P.A. 101-419, eff. 1-1-20.)
(65 ILCS 5/8-8-8) (from Ch. 24, par. 8-8-8)
Sec. 8-8-8. 
The expenses of the audit and investigation of public accounts
provided for in Division 8, whether ordered by the corporate authorities
or the Comptroller, shall be paid by the municipality for which the
audit is made. Payment shall be ordered by the corporate authorities out
of the funds of the municipality and it shall be the duty of such
authorities to make provisions for payment. Contracts for the
performance of audits required by this Division 8 may be entered into
without competitive bidding. If the audit is made by an auditor or auditors retained by the Comptroller, the municipality shall pay to
the Comptroller reasonable compensation and expenses to reimburse him
for the cost of making such audit.
The corporate authorities of all municipalities coming under the
provisions of this Division 8 shall have the power to annually levy a
"Municipal Auditing Tax" upon all of the taxable property of the
municipalities at the rate on the dollar which will produce an amount
which will equal a sum sufficient to meet the cost of all auditing and
reports thereunder. Such municipal auditing tax shall be held in a
special fund and used for no other purpose than the payment of expenses
occasioned by this Division 8.
The tax authorized by this Section shall be in addition to taxes for
general corporate purposes authorized under Section 8-3-1 of this Act.
(Source: P.A. 101-419, eff. 1-1-20.)
(65 ILCS 5/8-8-9) (from Ch. 24, par. 8-8-9)
Sec. 8-8-9. 
		
		The provisions of the Division 8 shall not be construed
to relieve any officer of any duties now required by law of him with
relation to the auditing of public accounts or the disbursement of
public funds.  Failure of the corporate authorities of any municipality
to comply with any of the provisions of this Division 8 shall not affect
the legality of taxes levied for any of the funds of such municipality.
Notwithstanding any provision to the contrary, any municipality which
files audits or audit reports with the Comptroller in compliance with
this Act shall not be required to file any additional audits or audit
reports with any state governmental agency providing motor fuel tax
funds to such municipality.  Any such state governmental agency may
obtain copies of all audits and audit reports from the Comptroller.
(Source: P.A. 80-423.)
(65 ILCS 5/8-8-10) (from Ch. 24, par. 8-8-10)
Sec. 8-8-10. 
		
		The corporate authorities of a municipality may establish
an audit committee, and may appoint members of the corporate authority or
other appropriate officers to the committee, to review audit reports prepared
under this Act and any other financial reports and documents, including
management letters prepared by or on behalf of the municipality.
(Source: P.A. 82-644.)
(65 ILCS 5/8-8-10.5)
Sec. 8-8-10.5. Audit report disclosure. Each fiscal year, within 60 days of the close of an audit under this Act, the auditor conducting the audit of all of the funds and accounts of a municipality shall do each of the following:
(1) Provide a copy of any management letter and a     copy of any audited financial statements to each member of the municipality's corporate authorities. If the municipality maintains an Internet website, the corporate authorities shall post this information to its website.
(2) Present the information from the audit to the     municipality's corporate authorities either in person or by a live phone or web connection during a public meeting.
(Source: P.A. 98-738, eff. 1-1-15.)
(65 ILCS 5/Art. 8 Div. 9 heading)
DIVISION 9.  
		PURCHASING AND PUBLIC
WORKS CONTRACTS IN MUNICIPALITIES
OF LESS THAN 500,000
(65 ILCS 5/8-9-1) (from Ch. 24, par. 8-9-1)
Sec. 8-9-1. In municipalities of less than 500,000 except
as otherwise provided in Articles 4 and 5 any work or other
public improvement which is not to be paid for in whole or in
part by special assessment or special taxation, when the expense
thereof will exceed $25,000, shall be constructed either (1)
by a contract let to the lowest responsible bidder after
advertising for bids, in the manner prescribed by ordinance,
except that any such contract may be entered into by the proper
officers without advertising for bids, if authorized by a vote
of two-thirds of all the alderpersons or trustees then holding office;
or (2) in the following manner, if authorized by a vote of
two-thirds of all the alderpersons or trustees then holding office,
to-wit:  the commissioner of public works or other proper officers
to be designated by ordinance, shall superintend and cause to
be carried out the construction of the work or other public
improvement and shall employ exclusively for the performance
of all manual labor thereon, laborers and artisans whom the
municipality shall pay by the day or hour; and all material
of the value of $25,000 and upward used in the construction of
the work or other public improvement, shall be purchased by
contract let to the lowest responsible bidder in the manner
to be prescribed by ordinance.  However, nothing contained
in this Section shall apply to any contract by a city, village
or incorporated town with the federal government or any agency thereof.
In every city which has adopted Division 1 of Article 10,
every such laborer or artisan shall be certified by the civil
service commission to the commissioner of public works or other
proper officers, in accordance with the requirement of that division.
In municipalities of 500,000 or more population the letting of
contracts for work or other public improvements of the character
described in this Section shall be governed by the provisions of
Division 10 of this Article 8.
(Source: P.A. 102-15, eff. 6-17-21.)
(65 ILCS 5/8-9-2) (from Ch. 24, par. 8-9-2)
Sec. 8-9-2. 
		
		(a) In municipalities of less than 500,000 population, the
corporate authorities may provide by ordinance that all supplies needed for
use of the municipality shall be furnished by contract, let to the lowest
bidder.
In municipalities of more than 500,000 population the provisions of
Division 10 of this Article 8 shall apply to and govern the purchase of
supplies.
The provisions of this Section are subject to any contrary provisions
contained in "An Act concerning the use of Illinois mined coal in certain
plants and institutions", filed July 13, 1937, as heretofore and hereafter
amended.
(b) The corporate authorities of a municipality may by ordinance provide
that
contracts to provide goods and services to the municipality contain a provision
requiring
the contractor and its affiliates to collect and remit Illinois Use Tax on all
sales of
tangible personal property into the State of Illinois in accordance with the
provisions of
the Illinois Use Tax Act, and municipal use tax on all sales of tangible
personal property
into the municipality in accordance with a municipal ordinance authorized by
Section 8-11-6 or 8-11-1.5, during the term of the contract or for some other
specified
period,
regardless of whether the contractor or affiliate is a "retailer maintaining a
place of
business within this State" as defined in Section 2 of the Use Tax Act. The
provision
may state that if the requirement is not met, the contract may be terminated by
the
municipality, and the contractor may be subject to such other penalties or the
exercise of
such remedies as may be stated in the contract or the ordinance adopted under
this
Section. An ordinance adopted under this Section may contain exceptions for
emergencies or other circumstances when the exception is in the best interest of
the
public. For purposes of this Section, the term "affiliate" means any entity
that (1)
directly, indirectly, or constructively controls another entity, (2) is
directly, indirectly, or
constructively controlled by another entity, or (3) is subject to the control of
a common
entity. For purposes of this subsection (b), an entity controls another entity
if it owns,
directly or individually, more than 10% of the voting securities of that
entity. As used in
this subsection (b), the term "voting security" means a security that (1)
confers upon the
holder the right to vote for the election of members of the board of directors
or similar
governing body of the business or (2) is convertible into, or entitles the
holder to receive
upon its exercise, a security that confers such a right to vote. A general
partnership
interest is a voting security.
(Source: P.A. 93-25, eff. 6-20-03.)
(65 ILCS 5/8-9-3) (from Ch. 24, par. 8-9-3)
Sec. 8-9-3. 
		
		In the event of a conflict between the application of this
Division 9 of Article 8 and the application of "An Act concerning
municipalities, counties and other
political subdivisions", enacted by the 85th General Assembly,
the provisions of "An Act concerning
municipalities, counties and other political subdivisions"
shall prevail.
(Source: P.A. 85-854.)
(65 ILCS 5/8-9-4)
Sec. 8-9-4. 
		Long-term contracts. 
		Any municipality may enter into a
long-term energy
contract, even if the length of the contract would exceed the term of office of
the
corporate authorities that approved the contract.
(Source: P.A. 93-58, eff. 1-1-04.)
(65 ILCS 5/Art. 8 Div. 10 heading)
DIVISION 10.  
		PURCHASING AND PUBLIC
WORKS CONTRACTS IN CITIES OF
MORE THAN 500,000
(65 ILCS 5/8-10-1) (from Ch. 24, par. 8-10-1)
Sec. 8-10-1. 
		
		This division shall be known and is hereafter designated as
"Municipal purchasing act for cities of 500,000 or more population."
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-10-2) (from Ch. 24, par. 8-10-2)
Sec. 8-10-2. 
		
		In addition to all the rights, powers, privileges, duties, and
obligations conferred thereon elsewhere in this division or any other Acts,
all cities of 500,000 or more population shall have the rights, powers and
privileges and shall be subject to the duties and obligations conferred
thereon by this Division 10.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-10-2.5)
Sec. 8-10-2.5. 
		Airports. 
		This Division 10 applies to purchase orders and
contracts relating to airports owned or operated by a municipality of more than
500,000 population.
(Source: P.A. 89-405, eff. 11-8-95.)
(65 ILCS 5/8-10-3) (from Ch. 24, par. 8-10-3)
Sec. 8-10-3. 
		
		(a) Except as otherwise herein provided, all purchase
orders
or contracts of whatever nature, for labor, services or work, the
purchase, lease, or sale of personal property, materials, equipment or
supplies, involving amounts in excess of $10,000, made by or on behalf of
any such municipality, shall be let by free and open competitive bidding
after advertisement, to the lowest responsible bidder, or in the
appropriate instance, to the highest responsible bidder, depending upon
whether such municipality is to expend or to receive money. All such
purchase orders or contracts, as defined above, which shall involve
amounts of $10,000, or less, shall be let in the manner described above
whenever practicable, except that such purchase orders or contracts may
be let in the open market in a manner calculated to insure the best
interests of the public, after solicitation of bids by mail, telephone,
or otherwise. The provisions of this Section are subject to any contrary
provision contained in "An Act concerning the use of Illinois mined coal
in certain plants and institutions", filed July 13, 1937, as heretofore
and hereafter amended.
(b) The corporate authorities of a municipality may by ordinance provide
that
contracts to provide goods and services to the municipality contain a provision
requiring
the contractor and its affiliates to collect and remit Illinois Use Tax on all
sales of
tangible personal property into the State of Illinois in accordance with the
provisions of
the Illinois Use Tax Act, and municipal use tax on all sales of tangible
personal property
into the municipality in accordance with a municipal ordinance authorized by
Section 8-11-6 or 8-11-1.5, during the term of the contract or for some other
specified
period,
regardless of whether the contractor or affiliate is a "retailer maintaining a
place of
business within this State" as defined in Section 2 of the Use Tax Act. The
provision
may state that if the requirement is not met, the contract may be terminated by
the
municipality, and the contractor may be subject to such other penalties or the
exercise of
such remedies as may be stated in the contract or the ordinance adopted under
this
Section. An ordinance adopted under this Section may contain exceptions for
emergencies or other circumstances when the exception is in the best interest of
the
public. For purposes of this Section, the term "affiliate" means any entity
that (1)
directly, indirectly, or constructively controls another entity, (2) is
directly, indirectly, or
constructively controlled by another entity, or (3) is subject to the control of
a common
entity. For purposes of this subsection (b), an entity controls another entity
if it owns,
directly or individually, more than 10% of the voting securities of that
entity.
As used in
this subsection (b), the term "voting security" means a security that (1)
confers upon the
holder the right to vote for the election of members of the board of directors
or similar
governing body of the business or (2) is convertible into, or entitles the
holder to receive
upon its exercise, a security that confers such a right to vote. A general
partnership
interest is a voting security.
(Source: P.A. 93-25, eff. 6-20-03.)
(65 ILCS 5/8-10-4) (from Ch. 24, par. 8-10-4)
Sec. 8-10-4. 
		
		Contracts which by their nature are not adapted to award by
competitive bidding, such as but not limited to contracts for the services
of individuals possessing a high degree of professional skill where the
ability or fitness of the individual plays an important part, contracts for
supplies, materials, parts or equipment which are available only from a
single source, contracts for printing of finance committee pamphlets,
comptroller's estimates, and departmental reports, contracts for the
printing or engraving of bonds, water certificates, tax warrants and other
evidences of indebtedness, contracts for utility services such as water,
light, heat, telephone or telegraph, and contracts for the purchase of
magazines, books, periodicals and similar articles of an educational or
instructional nature, and the binding of such magazine, books, periodicals,
pamphlets, reports and similar articles shall not be subject to the
competitive bidding requirements of this Article. The purchasing agent
hereinafter provided for is hereby expressly authorized to procure from any
federal, state or local governmental unit or agency thereof such materials,
supplies, commodities or equipment as may be made available through the
operation of any legislation heretofore or hereafter enacted without
conforming to the competitive bidding requirements of this Division 10.
Regular employment contracts in the municipal service, whether with respect
to the classified service or otherwise, shall not be subject to the
provisions of this Division 10, nor shall this Division 10 be applicable to
the granting or issuance pursuant to powers conferred by laws, ordinances
or resolutions, of franchises, licenses, permits or other authorizations by
the corporate authorities of the municipality, or by departments, offices,
institutions, boards, commissions, agencies or other instrumentalities
thereof, nor to contracts or transactions, other than the sale or lease of
personal property, pursuant to which the municipality is the recipient of
money. The purchasing agent may sell or cause to be loaned with proper
surety, materials common only to the municipal water distribution system,
to such corporations and individuals, upon a proper showing that they are
unable to obtain such materials for the purpose of obtaining water from the
water system, or while awaiting shipment from manufacturers or vendors of
such material, provided, that proper charges for the sale of such material
shall be made to such extent as to save the municipality from monetary
losses in such transactions.
(Source: Laws 1967, p. 3599.)
(65 ILCS 5/8-10-5) (from Ch. 24, par. 8-10-5)
Sec. 8-10-5. 
		
		In the case of an emergency affecting the public health
or safety, so declared by the corporate authorities of the municipality
at a meeting thereof duly convened, which declaration shall require the
affirmative vote of a majority of all the members thereof and shall set
forth the nature of the danger to the public health or safety, contracts
may be let to the extent necessary to resolve such emergency without
public advertisement. The resolution or ordinance in which such
declaration is embodied shall fix the date upon which such emergency
shall terminate, which date may be extended or abridged by the corporate
authorities as in their judgment the circumstances require.
The purchasing agent hereinafter provided for, may purchase or may
authorize in writing any agency of such municipal government or of the
institutions, boards or commissions thereof, if any, to purchase in the
open market without filing requisition or estimate therefor, and without
advertisement, any supplies, materials or equipment, for immediate
delivery to meet bona fide operating emergencies where the amount
thereof is not in excess of $40,000. A full written account of any such
emergency together with a requisition for the materials, supplies or
equipment required therefor shall be submitted immediately to the
purchasing agent and shall be open to public inspection for a period of
at least one year subsequent to the date of such emergency purchase. The
exercise of the authority herein vested in the purchasing agent in
respect to purchases for such bona fide operating emergencies shall not
be dependent upon a declaration of emergency by the corporate
authorities under the first paragraph of this section.
(Source: P.A. 81-1376.)
(65 ILCS 5/8-10-6) (from Ch. 24, par. 8-10-6)
Sec. 8-10-6. 
		
		The responsible head of each major department, office,
institution, board, commission, agency or instrumentality of such
municipal government shall certify in writing to the purchasing agent
the names of such officers or employees who shall be exclusively
authorized to sign requests for purchase for such respective department,
office, institution, board, commission, agency or instrumentality, and
all requests for purchase shall be void unless executed by such
certified officers or employees and approved by the purchasing agent.
Except as to emergency contracts authorized by Section 8-10-5, no
undertaking involving amounts in excess of $10,000 shall be split into
parts, by the requisitioning agent or otherwise, so as to produce
amounts of $10,000 or less, for the purpose of avoiding the provisions of
this Division 10.
The term "responsible head" as used herein shall, in the case of the
corporate authorities of the municipality, be such member, members, or
committee thereof as shall be designated by appropriate resolution or
order adopted by such corporate authorities.
(Source: P.A. 81-1376.)
(65 ILCS 5/8-10-7) (from Ch. 24, par. 8-10-7)
Sec. 8-10-7. 
		
		All proposals to award purchase orders or contracts
involving amounts in excess of $10,000 shall be published at least 10
days, excluding Sundays and legal holidays, in advance of the date
announced for the receiving of bids, in a secular English language daily
newspaper of general circulation throughout such municipality and shall
simultaneously be posted on readily accessible bulletin boards in the
office of the purchasing agent. Nothing contained in this section shall
be construed to prohibit the purchasing agent from placing additional
announcements in recognized trade journals. Advertisements for bids
shall describe the character of the proposed contract or agreement in
sufficient detail to enable the bidders thereon to know what their
obligations will be, either in the advertisement itself, or by reference
to detailed plans and specifications on file at the time of the
publication of the first announcement. Such advertisement shall also
state the date, time and place assigned for the opening of bids, and no
bids shall be received at any time subsequent to the time indicated in
the announcement. However, an extension of time may be granted for the
opening of such bids upon publication in a secular English newspaper of
general circulation throughout such municipality of the date to which
the bid opening has been extended. The time of the bid extension opening
shall not be less than 5 days after the publication thereof, Sundays and
legal holidays excluded.
Cash, cashier's check, a certified check, a comptroller's
certificate of moneys owed the particular vendor, or a bid bond with
adequate surety approved by the purchasing agent as a deposit of good
faith, in a reasonable amount, but not in excess of 10% of the contract
amount may be required of each bidder by the purchasing agent on all
bids involving amounts in excess of $10,000 and, if so required, the
advertisement for bids shall so specify.
(Source: P.A. 84-1269.)
(65 ILCS 5/8-10-8) (from Ch. 24, par. 8-10-8)
Sec. 8-10-8. 
		
		Any agreement or collusion among bidders or prospective
bidders in restraint of freedom of competition by agreement to bid a fixed
price, or otherwise, shall render the bids of such bidders void. Each
bidder shall accompany his bid with a sworn statement, or otherwise swear
or affirm, that he has not been a party to any such agreement. Any
disclosure in advance of the opening of bids, of the terms of the bids
submitted in response to an advertisement, made or permitted by the
purchasing agent shall render the proceedings void and shall require
re-advertisement and re-award.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-10-8.5)
Sec. 8-10-8.5. 
		Disclosure. 
		Each person submitting a bid or proposal in
relation to any contract in excess of $10,000 under this Division 10, including
contracts exempt from competitive bidding under Section 8-10-4 or 8-10-5, must
disclose in his or her application the name of each individual having a
beneficial interest of more than 7 1/2% in the enterprise and,
if the person wishing to submit a bid or proposal is a
corporation, the names of all its officers and directors. The person
shall notify the municipality of any changes in its ownership or
officers at the time such changes occur.  In the case of emergency contracts
under Section 8-10-5, disclosure under this Section shall be made within 14
days after the contract.
(Source: P.A. 89-405, eff. 11-8-95.)
(65 ILCS 5/8-10-9) (from Ch. 24, par. 8-10-9)
Sec. 8-10-9. 
		
		All sealed bids shall be publicly opened by the purchasing
agent of such municipality, or by an officer or employee in the office of
the purchasing agent duly authorized in writing by the purchasing agent to
open such bids, and all such bids shall be open to public inspection in the
office of the purchasing agent for a period of at least 48 hours before
award is made.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-10-10) (from Ch. 24, par. 8-10-10)
Sec. 8-10-10. 
		
		The award of any contract involving amounts in excess
of $10,000 shall be made by the purchasing agent to the lowest or highest
responsible bidder as provided in Section 8-10-3. Every contract
involving amounts in excess of $10,000 shall be signed by the mayor or
his duly designated agent, by the comptroller and by the purchasing
agent, respectively, of such municipality. Each bid, with the name of
the bidder, shall be entered on a record which record with the name of
the successful bidder indicated thereon, shall, after award of contract,
be open to public inspection in the office of the purchasing agent of
such municipality.
All purchase orders or contracts involving amounts of $10,000 or less
shall be awarded by the purchasing agent to the lowest or highest
responsible bidder as provided in Section 8-10-3 and shall be signed by
the purchasing agent and by the comptroller.
An official copy of each awarded purchase order or contract together
with all necessary attachments thereto, including assignments and
written consents thereto of the purchasing agent as authorized by
Section 8-10-14, shall be retained by the purchasing agent in an
appropriate file open to the public for such period of time after
termination of contract during which action against the municipality
might ensue under applicable laws of limitation. After such period such
purchase orders, contracts and attachments may be destroyed by direction
of the purchasing agent.
(Source: P.A. 81-1376.)
(65 ILCS 5/8-10-11) (from Ch. 24, par. 8-10-11)
Sec. 8-10-11. 
		
		In determining the responsibility of any bidder the
purchasing agent may take into account other factors in addition to
financial responsibility, such as past records of transactions with the
bidder, experience, adequacy of equipment, ability to complete performance
within a specified time limit and other pertinent considerations.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-10-12) (from Ch. 24, par. 8-10-12)
Sec. 8-10-12. 
		
		Any and all bids received in response to an advertisement may
be rejected by the purchasing agent if the bidder is not deemed
responsible, or the character or quality of the services, supplies,
materials, equipment or labor does not conform to requirements or if the
public interest may otherwise be served thereby.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-10-13) (from Ch. 24, par. 8-10-13)
Sec. 8-10-13. 
		
		Bond, with sufficient sureties, in such amount as shall
be deemed adequate, not only to insure performance of contract in the
time and manner prescribed in the contract, but also to save, indemnify,
and keep harmless the municipality against all loss, damages, claims,
liabilities, judgments, costs, and expenses which may in anywise accrue
against the municipality in consequence of the granting of the contract,
or which may in anywise result therefrom, may be required of each bidder
upon contracts involving amounts in excess of $10,000 when, in the
opinion of the purchasing agent, the public interests will be served
thereby.
(Source: P.A. 81-1376.)
(65 ILCS 5/8-10-14) (from Ch. 24, par. 8-10-14)
Sec. 8-10-14. 
		
		No contract awarded to the lowest responsible bidder or to
the highest responsible bidder, as the case may be, shall be assignable or
sublet by the successful bidder without the written consent of the
purchasing agent. In no event shall a contract or any part thereof be
assigned or sublet to a bidder who had been declared not to be a
responsible bidder in the consideration of bids submitted in response to
advertisement for the particular contract.
(Source: Laws 1967, p. 3599.)
(65 ILCS 5/8-10-15) (from Ch. 24, par. 8-10-15)
Sec. 8-10-15. 
		
		In all municipalities within the purview of this Division 10,
there shall be a purchasing agent who shall be appointed by the mayor by
and with the consent of the corporate authorities of the municipality. The
purchasing agent shall hold office for a term of 4 years and until his
successor is appointed and qualified. Such purchasing agent may be removed
from office for cause after public hearing before the corporate authorities
at which hearing the purchasing agent with counsel shall be entitled to be
heard. His salary shall be fixed by the corporate authorities and he shall
be required to give bond, with adequate surety, for the faithful
performance of his duties in an amount to be determined by the corporate
authorities. He shall be exempt from the provisions of Division 1 of
Article 10, relating to civil service, in any municipality which has or
may hereafter adopt that Division 1. In making the appointment of the
purchasing agent, the mayor and corporate authorities shall give due
consideration to the executive experience and ability required for the
proper and effective discharge of the duties of the office, and no person
shall be appointed purchasing agent unless he has served for at least 3
years in a responsible executive capacity requiring knowledge of and
experience in large scale purchasing activities.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-10-16) (from Ch. 24, par. 8-10-16)
Sec. 8-10-16. 
		
		The purchasing agent may appoint the necessary employees of
his office in accordance with law. The number and salaries of such
employees shall be fixed by the corporate authorities. The purchasing agent
shall: (a) adopt, promulgate and from time to time revise rules and
regulations for the proper conduct of his office; (b) constitute the sole
agent of the municipality in contracting for labor, materials, services, or
work, the purchase, lease, or sale of personal property, materials,
equipment or supplies, in conformity with the provisions of this Division
10; (c) open all sealed bids; (d) determine the lowest or highest
responsible bidder, as the case may be, as required by this Division 10,
and purchase orders in conformity with this Division 10; (e) enforce
written specifications describing standards established in conformity with
this Division 10; (f) operate or require such physical, chemical or other
tests as may be necessary to insure conformity to such specifications with
respect to quality of materials; (g) exercise, or require, at central
storerooms or otherwise, such control as may be necessary to insure
conformity to contract provisions with respect to quantity; (h) distribute
or cause to be distributed, to the various requisitioning agencies of such
municipality, such supplies, materials or equipment, as may be purchased by
him; (i) transfer materials, supplies and equipment to or between the
various requisitioning agencies and to trade in, sell or dispose of such
materials, supplies or equipment as may become surplus, obsolete or
unusable; (j) control inventories and inventory records of all stocks of
materials, supplies and equipment of common usage contained in any central
or principal storeroom, stockyard or warehouse of such municipality; (k)
assume such related activities as may be assigned to him from time to time
by the mayor or the corporate authorities of such municipality, and (l)
submit to the mayor of such municipality an annual report faithfully
describing the activities of his office, which report shall be spread upon
the official public records of the corporate authorities of such
municipality or given comparable public distribution.
(Source: Laws 1967, p. 3599.)
(65 ILCS 5/8-10-17) (from Ch. 24, par. 8-10-17)
Sec. 8-10-17. 
The corporate authorities of any such municipality may
establish a revolving fund in such amount as may be necessary to enable the
purchasing agent to purchase items of common usage in advance of immediate
need, the revolving fund to be reimbursed from the annual appropriation of
the requisitioning agencies. Neither the purchasing agent, nor any officer
or employee of his office, nor any member of the board of standardization
hereinafter provided for, shall be financially interested, directly or
indirectly, in any purchase order or contract coming under the purview of
his official duties. The above named officials and employees are expressly
prohibited from accepting, directly or indirectly, from any person,
company, firm, or corporation to which any purchase order or contract may be
awarded, any rebate, gift, money, or anything of value whatsoever. Any
officer or employee, as above defined, convicted of violating this Section 
shall be guilty of a business offense and shall be fined not to exceed
$10,000 and shall forfeit the right to his public office, trust, or
employment and shall be removed therefrom.
(Source: P.A. 103-154, eff. 6-30-23.)
(65 ILCS 5/8-10-18) (from Ch. 24, par. 8-10-18)
Sec. 8-10-18. 
No department, office, institution, commission, board, agency,
or instrumentality of any such municipality, or any officer or employee 
thereof, shall be empowered to execute any purchase order or contract as
defined in Section 8-10-3 except as herein specifically authorized, but all
such purchase orders or contracts shall be executed by the purchasing agent
in conformity with the provisions of this Division 10.
(Source: P.A. 103-154, eff. 6-30-23.)
(65 ILCS 5/8-10-19) (from Ch. 24, par. 8-10-19)
Sec. 8-10-19. 
		
		In all municipalities to which the provisions of this
Division 10 shall apply, there shall be a board of standardization, which
board shall be composed of the purchasing agent for such municipality, who
shall be chairman, and 6 other members who shall be appointed by the mayor
of such municipality. Three of the members shall be responsible heads of a
major office, department, institution, commission or board of such
municipality and shall receive no compensation for their services on the
board of standardization. The other 3 members may be officers or employees
of the municipality but only those such members who are not officers or
employees shall be entitled to receive such compensation as the corporate
authorities may provide. Any member, excepting the purchasing agent, may
deputize a proxy to act in his stead. The board of standardization shall
meet at least once each 2 calendar months upon notification by the chairman
at least 5 days in advance of the date announced for such meeting. Official
action of the board shall require the vote of a majority of all members of
the board. The chairman shall cause to be prepared a report faithfully
describing the proceedings of each meeting, which report shall be
transmitted to each member and shall be made available to the mayor and to
the corporate authorities, respectively, of such municipality within 5
days, excluding Sundays and legal holidays, subsequent to the date of the
meeting.
The board of standardization shall: (a) classify the requirements of
such municipality, including the departments, offices, institutions,
commissions and boards thereof, with respect to supplies, materials, and
equipment, of common usage, (b) adopt as standards, the smallest numbers of
the various qualities, sizes and varieties of such supplies, materials and
equipment as may be consistent with the efficient operation of such
municipal government, and (c) prepare, adopt, promulgate, and from time to
time revise, written specifications describing such standards.
Specifications describing in detail the physical, chemical and other
characteristics of supplies, material or equipment to be acquired by
purchase order or contract shall be prepared by the board of
standardization.
In the preparation or revision of standard specifications the board of
standardization shall solicit the advice, assistance and cooperation of the
several requisitioning agencies and shall be empowered to consult such
public or non-public laboratory or technical services as may be deemed
expedient. After adoption, each standard specification shall, until
rescinded, apply alike in terms and effect to every purchase or contract
for the purchase of any commodity, material, supply or equipment and shall
be made available to the public upon request.
(Source: Laws 1967, p. 3599.)
(65 ILCS 5/8-10-20) (from Ch. 24, par. 8-10-20)
Sec. 8-10-20. 
		
		Official ordinances in conformity with the provisions of this
Division 10 shall be adopted by formal action of the corporate authorities
of such municipality and shall be published for the information of the
public.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-10-21) (from Ch. 24, par. 8-10-21)
Sec. 8-10-21. 
		
		Any purchase order or contract executed in violation of this
Division 10 shall be null and void as to the municipality and if public
funds shall have been expended thereupon the amount thereof may be
recovered in the name of the municipality in an appropriate action
instituted therefor.
An official who knowingly and intentionally lets a contract in violation of
the competitive bid requirements of this Division 10 forfeits his or her
office.
(Source: P.A. 89-405, eff. 11-8-95.)
(65 ILCS 5/8-10-22) (from Ch. 24, par. 8-10-22)
Sec. 8-10-22. 
		
		Nothing contained in this Division 10 shall be deemed to
apply to the letting of contracts and accepting of bids for the
construction of local improvements pursuant to Division 2 of Article 9.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-10-23) (from Ch. 24, par. 8-10-23)
Sec. 8-10-23. 
		
		The comptroller of each municipality to which this Division
10 applies shall conduct audits of all expenditures incident to all
purchase orders and contracts awarded hereunder by the purchasing agent.
The comptroller shall make reports on such audits to the mayor and
corporate authorities.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-10-24) (from Ch. 24, par. 8-10-24)
Sec. 8-10-24. 
		
		All specifications pertaining to the construction,
alteration, rehabilitation or repair of any real property of such
municipality shall be prepared by the engineering agency engaged in the
design of such construction, alteration, rehabilitation or repair, prior to
approval by the purchasing agent, and any such specification shall form a
part of any such purchase order or contract, and the performance,
inspection and testing of all such contracts shall be supervised by the
engineering agency designated in such contracts.
If after award of such contracts changes or modifications are
necessitated therein, such changes or modifications may be accomplished or
ordered in writing by the engineering agency, but if the costs thereof are
estimated to exceed $5,000 written approval of the purchasing agent must be
first obtained. A modification agreement therefor shall thereafter be
executed by the contractor, the mayor or his duly designated agent, by the
comptroller and by the purchasing agent.
(Source: Laws 1967, p. 3599.)
(65 ILCS 5/8-10-25) (from Ch. 24, par. 8-10-25)
Sec. 8-10-25. 
		
		In the event of a conflict between the application of
this Division 10 of Article 8 and the application of "An Act concerning
municipalities, counties and other political subdivisions", enacted by the
85th General Assembly, the provisions of "An Act concerning municipalities,
counties and other political subdivisions" shall prevail.
(Source: P.A. 85-854.)
(65 ILCS 5/8-10-26)
Sec. 8-10-26. 
		Long-term contracts. 
		Any municipality may enter into a
long-term energy
contract, even if the length of the contract would exceed the term of office of
the
corporate authorities that approved the contract.
(Source: P.A. 93-58, eff. 1-1-04.)
(65 ILCS 5/Art. 8 Div. 11 heading)
DIVISION 11.  
		CERTAIN REVENUE TAXES
(65 ILCS 5/8-11-1) (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 (or at the 0% rate imposed under this amendatory Act of the 102nd General Assembly). 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. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
(65 ILCS 5/8-11-1.1) (from Ch. 24, par. 8-11-1.1)
Sec. 8-11-1.1. Non-home rule municipalities; imposition of taxes.
(a) The corporate authorities of a non-home rule
municipality
may, upon approval of the electors of the municipality pursuant to
subsection (b) of this Section, impose by ordinance or resolution the tax authorized in Sections 8-11-1.3, 8-11-1.4 and 8-11-1.5 of this Act.
(b) The corporate authorities of the municipality may by ordinance or
resolution call for the submission to the electors of the municipality
the question of whether the municipality shall impose such tax.  Such
question shall be certified by the municipal clerk to the election
authority in accordance with Section 28-5 of the Election Code and shall be
in a form in accordance with Section 16-7 of the Election Code.
Notwithstanding any provision of law to the contrary, if the proceeds of the tax may be used for municipal operations pursuant to Section 8-11-1.3, 8-11-1.4, or 8-11-1.5, then the election authority must submit the question in substantially the following form:
Shall the corporate authorities of the municipality     be authorized to levy a tax at a rate of (rate)%  for expenditures on municipal operations, expenditures on public infrastructure, or property tax relief?
If a majority of the electors in the municipality voting upon the
question vote in the affirmative, such tax shall be imposed.
Until January 1, 1992, an ordinance or resolution imposing the tax of not more than 1% hereunder or
discontinuing the same shall be adopted and a certified copy thereof,
together with a certification that the ordinance or resolution received
referendum approval in the case of the imposition of such tax, filed with
the Department of Revenue, on or before the first day of June, whereupon
the Department shall proceed to administer and enforce
the additional tax or to discontinue the tax, as the case may be, as of the
first day of September next following such adoption and filing.
Beginning January 1, 1992 and through December 31, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder 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, and through September 30, 2002, an ordinance or resolution imposing or
discontinuing the tax hereunder 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 such adoption and filing.
Beginning October 1, 2002, and through December 31, 2013, an ordinance or resolution imposing or
discontinuing the tax
under this Section or effecting a change in the rate of tax must either (i) be
adopted
and a
certified copy of the ordinance or resolution 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 of the ordinance or resolution 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.
Beginning January 1, 2014, if an ordinance or resolution imposing the tax under this Section, discontinuing the tax under this Section, or effecting a change in the rate of tax under this Section is adopted, a certified copy thereof, together with a certification that the ordinance or resolution received referendum approval in the case of the imposition of or increase in the rate of such tax, shall be filed with the Department of Revenue, either (i) on or before the first day of May, 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) 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.
Notwithstanding any provision in this Section to the contrary, if, in a non-home rule municipality with more than 150,000 but fewer than 200,000 inhabitants, as determined by the last preceding federal decennial census, an ordinance or resolution under this Section imposes or discontinues a tax or changes the tax rate as of July 1, 2007, then that ordinance or resolution, together with a certification that the
ordinance or resolution received referendum approval in the case of the
imposition of the tax, must be adopted and a certified copy of that ordinance or resolution must be filed with the Department on or before May 15, 2007, whereupon the Department shall proceed to administer and enforce this Section as of July 1, 2007.
Notwithstanding any provision in this Section to the contrary, if, in a non-home rule municipality with more than 6,500 but fewer than 7,000 inhabitants, as determined by the last preceding federal decennial census, an ordinance or resolution under this Section imposes or discontinues a tax or changes the tax rate on or before May  20, 2009, then that ordinance or resolution, together with a certification that the
ordinance or resolution received referendum approval in the case of the
imposition of the tax, must be adopted and a certified copy of that ordinance or resolution must be filed with the Department on or before May 20, 2009, whereupon the Department shall proceed to administer and enforce this Section as of July 1, 2009.
A non-home rule municipality may file
a
certified copy of an ordinance or resolution, with a certification that the
ordinance or resolution received referendum approval in the case of the
imposition of the tax, with the
Department of Revenue, as required under this Section, only after October 2,
2000.
The tax authorized by this Section may not be more than 1% and
may be imposed only in 1/4% increments.
(Source: P.A. 98-584, eff. 8-27-13.)
(65 ILCS 5/8-11-1.2) (from Ch. 24, par. 8-11-1.2)
Sec. 8-11-1.2. Definition. As used in Sections 8-11-1.3,
8-11-1.4 and 8-11-1.5 of this Act:
(a) "Public infrastructure" means
municipal roads and streets, access roads, bridges, and sidewalks; waste
disposal systems; and water and sewer line extensions, water distribution
and purification facilities, storm water drainage and retention facilities,
and sewage treatment facilities.
For purposes of referenda authorizing the
imposition of taxes by the City of DuQuoin under Sections 8-11-1.3, 8-11-1.4,
and 8-11-1.5 of this
Act
that are approved in November, 2002, or for purposes of referenda authorizing the
imposition of taxes by the Village of Forsyth under Sections 8-11-1.3, 8-11-1.4,
and 8-11-1.5 of this
Act
that are approved after the effective date of this amendatory Act of the 94th General Assembly,
						"public infrastructure" shall also
include public schools.
(b) "Property tax relief" means the action of a municipality to reduce the
levy for real estate taxes or avoid an increase in the levy for real estate
taxes that would otherwise have been required.  Property tax relief or the
avoidance of property tax must uniformly apply to all classes of property.
(Source: P.A. 94-1078, eff. 1-9-07; 95-331, eff. 8-21-07.)
(65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
Sec. 8-11-1.3. Non-Home Rule Municipal Retailers' Occupation Tax Act. The corporate authorities of a non-home rule municipality may impose
a tax upon all persons engaged in the business of selling tangible
personal property, other than on an item of tangible personal property
which is titled and registered by an agency of this State's Government,
at retail in the municipality 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 gross receipts from such
sales made in the course of such business.
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 July 1, 2030, 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 Retailers' Occupation Tax Act (or at the 0% rate imposed under this amendatory Act of the 102nd General Assembly). 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 shall permit such retailer 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 1, 1a, 1a-1, 1d, 1e,
1f, 1i, 1j, 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 municipality may impose a tax under this Section unless the municipality
also imposes a tax at the same rate under Section 8-11-1.4 of this Code.
Persons subject to any tax imposed pursuant to the authority granted
in this Section may reimburse themselves for their seller'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 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 such notification from the Department.  Such refund shall be paid by
the State Treasurer out of the non-home rule municipal retailers'
occupation tax fund or the Local Government Aviation Trust Fund, as appropriate.
Except as otherwise provided, the Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected hereunder for deposit into the Non-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 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 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
which 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 which the Department determines is necessary to offset
any amounts which 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 such
certification.
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 Federal 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.
When certifying the amount of a monthly disbursement to a municipality
under this Section, the Department shall increase or decrease such 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.
The Department of Revenue shall implement Public Act 91-649 so as to collect the tax on and after January 1, 2002.
As used in this Section, "municipal" and "municipality" mean 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 Retailers' Occupation Tax Act.
(Source: P.A. 101-10, eff. 6-5-19; 101-47, eff. 1-1-20; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
(65 ILCS 5/8-11-1.4) (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, 2030, 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 (or at the 0% rate imposed under this amendatory Act of the 102nd General Assembly). 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. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
(65 ILCS 5/8-11-1.5) (from Ch. 24, par. 8-11-1.5)
Sec. 8-11-1.5. Non-Home Rule Municipal Use Tax Act. The corporate
authorities of a non-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 with an agency of this State's government, based on the selling price of such tangible personal
property, as "selling price" is defined in the Use Tax Act, 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. If the tax is approved by referendum on or after the effective date of this amendatory Act of the 96th General Assembly, the corporate authorities of a non-home rule municipality may, until December 31, 2030, 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. Such tax shall
be
collected from persons whose Illinois address for title or registration
purposes is given as being in such municipality. Such tax shall be
collected by the municipality imposing such tax.
A non-home rule municipality may not
impose and collect the tax prior to January 1, 2002.
This Section shall be known and may be cited as the "Non-Home Rule
Municipal Use Tax Act".
(Source: P.A. 103-9, eff. 6-7-23.)
(65 ILCS 5/8-11-1.6)
Sec. 8-11-1.6. Non-home rule municipal retailers' occupation tax;
municipalities between 20,000 and 25,000. The
corporate
authorities of a non-home rule municipality with a population of more than
20,000 but less than 25,000 that has, prior to January 1, 1987, established a
Redevelopment Project Area that has been certified as a State Sales Tax
Boundary and has issued bonds or otherwise incurred indebtedness to pay for
costs in excess of $5,000,000, which is secured in part by a tax increment
allocation fund, in accordance with the provisions of Division 11-74.4 of this
Code may, by passage of an ordinance, impose a tax upon all persons engaged in
the business of selling tangible personal property, other than on an item of
tangible personal property that is titled and registered by an agency of this
State's Government, at retail in the municipality. This tax may not be
imposed on tangible personal property taxed at the 1% rate under the Retailers' Occupation Tax Act (or at the 0% rate imposed under this amendatory Act of the 102nd General Assembly). 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.
If imposed, the tax shall
only be imposed in .25% increments of the gross receipts from such sales made
in the course of business.  Any tax imposed by a municipality under 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. An ordinance
imposing 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 October, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of January next
following such adoption and filing.  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 under this Section without registering
separately with the Department under the 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, 1a-1, 1d, 1e, 1f, 1i, 1j, 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.
A tax may not be imposed by a municipality under this Section unless the
municipality also imposes a tax at the same rate under Section 8-11-1.7 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 the 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
Non-Home Rule Municipal Retailers' Occupation Tax Fund, which is hereby
created 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 Non-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 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 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 the
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.
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
federal 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.
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.
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.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
(65 ILCS 5/8-11-1.7)
Sec. 8-11-1.7. Non-home rule municipal service occupation tax;
municipalities between 20,000 and 25,000. The corporate authorities of a
non-home rule municipality
with a population of more than 20,000 but less than 25,000 as determined by the
last preceding decennial census that has, prior to January 1, 1987, established
a Redevelopment Project Area that has been certified as a State Sales Tax
Boundary and has issued bonds or otherwise incurred indebtedness to pay for
costs in excess of $5,000,000, which is secured in part by a tax increment
allocation fund, in accordance with the provisions of Division 11-74.4 of this
Code may, by passage of an ordinance, impose a tax upon all persons engaged in
the municipality in the business of making sales of service.  If imposed, the
tax shall only be imposed in .25% increments 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.
This tax may not be imposed on tangible personal property taxed at the 1% rate under the Service Occupation Tax Act (or at the 0% rate imposed under this amendatory Act of the 102nd General Assembly). 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 under 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.  An ordinance
imposing 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 October, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of January next
following such adoption and filing.  The certificate of
registration that is issued by the Department to a retailer
under the Retailers' Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is taxable under any
ordinance or resolution enacted under this Section without  registering
separately with the Department under the 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 a 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 Sections 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.
A tax may not be imposed by a municipality under this Section unless the
municipality also imposes a tax at the same rate under Section 8-11-1.6 of this
Act.
Person subject to any tax imposed under the authority granted in this Section
may reimburse themselves for their servicemen's tax liability hereunder by
separately stating the tax as an additional charge, which charge may be stated
in combination, in a single amount, with State tax that servicemen are
authorized to collect under the Service Use Tax Act, under 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. The refund shall be paid by the State Treasurer out of the
Non-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 forthwith pay over to the State Treasurer, ex officio,
as trustee, all taxes and penalties collected hereunder for deposit into the Non-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 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 Tax Compliance and Administration Fund, 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
the certification.
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.
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.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
(65 ILCS 5/8-11-1.8)
Sec. 8-11-1.8. Non-home rule municipal tax rescission. Whenever the
corporate authorities
of a non-home rule municipality with a population of more than 20,000 but less
than 25,000 have imposed a municipal retailers occupation tax under Sec.
8-11-1.6 and a municipal service occupation tax under Section
8-11-1.7, the
question of discontinuing the tax imposed under those Sections shall be
submitted to the voters of the municipality at the next regularly scheduled
election in accordance with the general election law upon a petition signed by
not fewer than 10% of the registered voters in the municipality.  The
petition shall be filed with the clerk, of the municipality within one year of
the passage of the ordinance imposing the tax; provided, the petition shall
be filed not less than 60 days prior to the election at which the question is
to be submitted to the voters of the municipality, and its validity shall be
determined as provided by the general election law.  The municipal clerk shall
certify the question to the proper election officials, who shall submit the
question to the voters.
Notice shall be given in the manner provided for in the general election law.
Referenda initiated under this Section shall be subject to the provisions and
limitations of the general election law.
The proposition shall be in substantially the following form:
Shall the additional Municipal Service Occupation Tax     and Municipal Retailers' Occupation Tax imposed within the municipal limits of (name of municipality) by Ordinance No. (state number) adopted on (date of adoption) be discontinued?
The votes shall be recorded as "Yes" or "No".
If a majority of all ballots cast on the proposition shall be in favor of
discontinuing the tax, within one month after approval of the referendum
discontinuing the tax the corporate authorities shall certify the results of
the referenda to the Department of Revenue and shall also file with the
Department a certified copy of an ordinance discontinuing the tax. Thereupon, the Department shall
discontinue collection of tax as of the first day of January next following the
referendum.
Except as herein otherwise provided, the referenda authorized by the terms of
this Section shall be conducted in all respects in the manner provided by the
general election law.
This Section shall apply only to taxes that have been previously imposed
under the provisions of Sections 8-11-1.6 and 8-11-1.7.
(Source: P.A. 100-201, eff. 8-18-17.)
(65 ILCS 5/8-11-2) (from Ch. 24, par. 8-11-2)
Sec. 8-11-2. The corporate authorities of any municipality may tax any or
all of the following occupations or privileges:
1. (Blank).
2. Persons engaged in the business of distributing,     supplying, furnishing, or selling gas for use or consumption within the corporate limits of a municipality of 500,000 or fewer population, and not for resale, at a rate not to exceed 5% of the gross receipts therefrom.
2a. Persons engaged in the business of distributing,     supplying, furnishing, or selling gas for use or consumption within the corporate limits of a municipality of over 500,000 population, and not for resale, at a rate not to exceed 8% of the gross receipts therefrom.  If imposed, this tax shall be paid in monthly payments.
3. The privilege of using or consuming electricity     acquired in a purchase at retail and used or consumed within the corporate limits of the municipality at rates not to exceed the following maximum rates, calculated on a monthly basis for each purchaser:
(i) For the first 2,000 kilowatt-hours used or         consumed in a month; 0.61 cents per kilowatt-hour;
(ii) For the next 48,000 kilowatt-hours used or         consumed in a month; 0.40 cents per kilowatt-hour;
(iii) For the next 50,000 kilowatt-hours used or         consumed in a month; 0.36 cents per kilowatt-hour;
(iv) For the next 400,000 kilowatt-hours used or         consumed in a month; 0.35 cents per kilowatt-hour;
(v) For the next 500,000 kilowatt-hours used or         consumed in a month; 0.34 cents per kilowatt-hour;
(vi) For the next 2,000,000 kilowatt-hours used         or consumed in a month; 0.32 cents per kilowatt-hour;
(vii) For the next 2,000,000 kilowatt-hours used         or consumed in a month; 0.315 cents per kilowatt-hour;
(viii) For the next 5,000,000 kilowatt-hours used         or consumed in a month; 0.31 cents per kilowatt-hour;
(ix) For the next 10,000,000 kilowatt-hours used         or consumed in a month; 0.305 cents per kilowatt-hour; and
(x) For all electricity used or consumed in         excess of 20,000,000 kilowatt-hours in a month, 0.30 cents per kilowatt-hour.
If a municipality imposes a tax at rates lower than     either the maximum rates specified in this Section or the alternative maximum rates promulgated by the Illinois Commerce Commission, as provided below, the tax rates shall be imposed upon the kilowatt hour categories set forth above with the same proportional relationship as that which exists among such maximum rates. Notwithstanding the foregoing, until December 31, 2008, no municipality shall establish rates that are in excess of rates reasonably calculated to produce revenues that equal the maximum total revenues such municipality could have received under the tax authorized by this subparagraph in the last full calendar year prior to August 1, 1998 (the effective date of Section 65 of Public Act 90-561); provided that this shall not be a limitation on the amount of tax revenues actually collected by such municipality.
Upon the request of the corporate authorities of a     municipality, the Illinois Commerce Commission shall, within 90 days after receipt of such request, promulgate alternative rates for each of these kilowatt-hour categories that will reflect, as closely as reasonably practical for that municipality, the distribution of the tax among classes of purchasers as if the tax were based on a uniform percentage of the purchase price of electricity. A municipality that has adopted an ordinance imposing a tax pursuant to subparagraph 3 as it existed prior to August 1, 1998 (the effective date of Section 65 of Public Act 90-561) may, rather than imposing the tax permitted by Public Act 90-561, continue to impose the tax pursuant to that ordinance with respect to gross receipts received from residential customers through July 31, 1999, and with respect to gross receipts from any non-residential customer until the first bill issued to such customer for delivery services in accordance with Section 16-104 of the Public Utilities Act but in no case later than the last bill issued to such customer before December 31, 2000.  No ordinance imposing the tax permitted by Public Act 90-561 shall be applicable to any non-residential customer until the first bill issued to such customer for delivery services in accordance with Section 16-104 of the Public Utilities Act but in no case later than the last bill issued to such non-residential customer before December 31, 2000.
4. Persons engaged in the business of distributing,     supplying, furnishing, or selling water for use or consumption within the corporate limits of the municipality, and not for resale, at a rate not to exceed 5% of the gross receipts therefrom.
None of the taxes authorized by this Section may be imposed with respect
to any transaction in interstate commerce or otherwise to the extent to
which the business or privilege may not, under the constitution and statutes
of the United States, be made the subject of taxation by this State or any
political sub-division thereof; nor shall any persons engaged in the business
of distributing, supplying, furnishing, selling or transmitting gas, water,
or electricity, or using or consuming electricity acquired in a purchase at
retail, be subject to taxation under the provisions of this Section for those
transactions that are or may become subject to taxation under the provisions
of the Municipal Retailers' Occupation Tax Act authorized by Section 8-11-1;
nor shall any tax authorized by this Section be imposed upon any person engaged
in a business or on any privilege unless the tax is imposed in like manner and
at the same rate upon all persons engaged in businesses of the same class in
the municipality, whether privately or municipally owned or operated, or
exercising the same privilege within the municipality.
Any of the taxes enumerated in this Section may be in addition to the
payment of money, or value of products or services furnished to the
municipality by the taxpayer as compensation for the use of its streets,
alleys, or other public places, or installation and maintenance therein,
thereon or thereunder of poles, wires, pipes, or other equipment used in the
operation of the taxpayer's business.
(a) If the corporate authorities of any home rule municipality have adopted
an ordinance that imposed a tax on public utility customers, between July 1,
1971, and October 1, 1981, on the good faith belief that they were exercising
authority pursuant to Section 6 of Article VII of the 1970 Illinois
Constitution, that action of the corporate authorities shall be declared legal
and valid, notwithstanding a later decision of a judicial tribunal declaring
the ordinance invalid.  No municipality shall be required to rebate, refund, or
issue credits for any taxes described in this paragraph, and those taxes shall
be deemed to have been levied and collected in accordance with the Constitution
and laws of this State.
(b) In any case in which (i) prior to October 19, 1979, the corporate
authorities of any municipality have adopted an ordinance imposing a tax
authorized by this Section (or by the predecessor provision of the Revised
Cities and Villages Act) and have explicitly or in practice interpreted gross
receipts to include either charges added to customers' bills pursuant to the
provision of paragraph (a) of Section 36 of the Public Utilities Act or charges
added to customers' bills by taxpayers who are not subject to rate regulation
by the Illinois Commerce Commission for the purpose of recovering any of the
tax liabilities or other amounts specified in such paragraph (a) of Section 36
of that Act, and (ii) on or after October 19, 1979, a judicial tribunal has
construed gross receipts to exclude all or part of those charges, then neither that
 municipality nor any taxpayer who paid the tax shall be required to
rebate, refund, or issue credits for any tax imposed or charge collected from
customers pursuant to the municipality's interpretation prior to October 19,
1979.  This paragraph reflects a legislative finding that it would be contrary
to the public interest to require a municipality or its taxpayers to refund
taxes or charges attributable to the municipality's more inclusive
interpretation of gross receipts prior to October 19, 1979, and is not
intended to prescribe or limit judicial construction of this Section.  The
legislative finding set forth in this subsection does not apply to taxes
imposed after January 1, 1996 (the effective date of Public Act 89-325).
(c) The tax authorized by subparagraph 3 shall be
collected from the purchaser  by the person maintaining a
place of business in this State who delivers the electricity
to the purchaser.  This tax shall constitute a debt of the
purchaser to the person who delivers the electricity to the
purchaser and if unpaid, is recoverable in the same manner as
the original charge for delivering the electricity.  Any tax
required to be collected pursuant to an ordinance authorized
by subparagraph 3 and any such tax collected by a person
delivering electricity shall constitute a debt owed to the
municipality by such person delivering the electricity, provided, that the
person delivering electricity shall be allowed credit for such tax related to
deliveries of electricity the charges for which are written off as
uncollectible, and provided further, that if such charges are thereafter
collected, the delivering supplier shall be obligated to remit such tax.  For
purposes of this subsection (c), any partial payment not specifically
identified by the purchaser shall be deemed to be for the delivery of
electricity.  Persons delivering electricity shall collect the tax from the
purchaser by adding such tax to the gross charge for
delivering the electricity, in the manner prescribed by the
municipality.  Persons delivering electricity shall also be
authorized to add to such gross charge an amount equal to 3%
of the tax to reimburse the person delivering
electricity for the expenses incurred in keeping records,
billing customers, preparing and filing returns, remitting the
tax and supplying data to the municipality upon request.  If
the person delivering electricity fails to collect the tax
from the purchaser, then the purchaser shall be required to
pay the tax directly to the municipality in the manner
prescribed by the municipality.  Persons delivering
electricity who file returns pursuant to this paragraph (c)
shall, at the time of filing such return, pay the municipality
the amount of the tax collected pursuant to subparagraph 3.
(d) For the purpose of the taxes enumerated in this Section:
"Gross receipts" means the consideration received for distributing, supplying,
furnishing or selling gas for use or consumption and not for resale, and the
consideration received for distributing, supplying, furnishing or selling
water for use or consumption and not for resale, and for all services
rendered in connection therewith valued in money, whether received in money
or otherwise, including cash, credit, services and property of every kind
and material and for all services rendered therewith, and shall be
determined without any deduction on account of the cost of the service,
product or commodity supplied, the cost of materials used, labor or service
cost, or any other expenses whatsoever.  "Gross receipts" shall not include
that portion of the consideration received for distributing, supplying,
furnishing, or selling gas or water to business enterprises described in
paragraph (e) of this Section to the extent and during the period in which the
exemption authorized by paragraph (e) is in effect or for school districts or
units of local government described in paragraph (f) during the period in which
the exemption authorized in paragraph (f) is in effect.
For utility bills issued on or after May 1, 1996, but before May 1, 1997,
and for receipts from those utility bills, "gross receipts" does not include
one-third of (i) amounts added to customers' bills under Section 9-222 of the
Public Utilities Act, or (ii) amounts added to customers' bills by taxpayers
who are not subject to rate regulation by the Illinois Commerce Commission for
the purpose of recovering any of the tax liabilities described in Section
9-222 of the Public Utilities Act. For utility bills issued on or after May 1,
1997, but before May 1, 1998, and for receipts from those utility bills, "gross
receipts" does not include two-thirds of (i) amounts added to customers' bills
under Section 9-222 of the Public Utilities Act, or (ii) amount added to
customers' bills by taxpayers who are not subject to rate regulation by the
Illinois Commerce Commission for the purpose of recovering any of the tax
liabilities described in Section 9-222 of the Public Utilities Act.  For
utility bills issued on or after May 1, 1998, and for receipts from those
utility bills, "gross receipts" does not include (i) amounts added to
customers' bills under Section 9-222 of the Public Utilities Act, or (ii)
amounts added to customers' bills by taxpayers who are
not subject to rate regulation by the Illinois Commerce Commission for the
purpose of recovering any of the tax liabilities described in Section 9-222
of the Public Utilities Act.
For purposes of this Section "gross receipts" shall not include amounts
added to customers' bills under Section 9-221 of the Public Utilities Act.
This paragraph is not intended to nor does it make any change in the meaning
of "gross receipts" for the purposes of this Section, but is intended to
remove possible ambiguities, thereby confirming the existing meaning of
"gross receipts" prior to January 1, 1996 (the effective date of Public Act 89-325).
"Person" as used in this Section means any natural individual, firm,
trust, estate, partnership, association, joint stock company, joint
adventure, corporation, limited liability company, municipal corporation,
the State or any of its political subdivisions, any State university created
by statute, or a receiver, trustee, guardian or other representative appointed
by order of any court.
"Person maintaining a place of business in this State"
shall mean any person having or maintaining within this State,
directly or by a subsidiary or other affiliate, an office,
generation facility, distribution facility, transmission
facility, sales office or other place of business, or any
employee, agent, or other representative operating within this
State under the authority of the person or its subsidiary or
other affiliate, irrespective of whether such place of
business or agent or other representative is located in this
State permanently or temporarily, or whether such person,
subsidiary or other affiliate is licensed or qualified to do
business in this State.
"Public utility" shall have the meaning ascribed to it in Section 3-105
of the Public Utilities Act and shall include alternative retail
electric suppliers as defined in Section 16-102 of that Act.
"Purchase at retail" shall mean any acquisition of
electricity by a purchaser for purposes of use or consumption,
and not for resale, but shall not include the use of
electricity by a public utility directly in the generation,
production, transmission, delivery or sale of electricity.
"Purchaser" shall mean any person who uses or consumes,
within the corporate limits of the municipality, electricity
acquired in a purchase at retail.
(e) Any municipality that imposes taxes upon public utilities or upon the
privilege of using or consuming electricity pursuant to this Section whose
territory includes any part of an enterprise zone or federally designated
Foreign Trade Zone or Sub-Zone may, by a majority vote of its corporate
authorities, exempt from those taxes for a period not exceeding 20 years any
specified percentage of gross receipts of public utilities received from, or
electricity used or consumed by, business enterprises that:
(1) either (i) make investments that cause the     creation of a minimum of 200 full-time equivalent jobs in Illinois, (ii) make investments of at least $175,000,000 that cause the creation of a minimum of 150 full-time equivalent jobs in Illinois, or (iii) make investments that cause the retention of a minimum of 1,000 full-time jobs in Illinois; and
(2) are either (i) located in an Enterprise Zone     established pursuant to the Illinois Enterprise Zone Act or (ii) Department of Commerce and Economic Opportunity designated High Impact Businesses located in a federally designated Foreign Trade Zone or Sub-Zone; and
(3) are certified by the Department of Commerce and     Economic Opportunity as complying with the requirements specified in clauses (1) and (2) of this paragraph (e).
Upon adoption of the ordinance authorizing the exemption, the municipal
clerk shall transmit a copy of that ordinance to the Department of Commerce
and Economic Opportunity.  The Department of Commerce and Economic Opportunity shall
determine whether the business enterprises located in the municipality meet the
criteria prescribed in this paragraph.  If the Department of Commerce and
Economic Opportunity determines that the business enterprises meet the criteria,
it shall grant certification.  The Department of Commerce and Economic Opportunity

shall act upon certification requests within 30 days after receipt of the
ordinance.
Upon certification of the business enterprise by the Department of
Commerce and Economic Opportunity, the Department of Commerce and Economic Opportunity shall notify the Department of Revenue of the certification.  The
Department of Revenue shall notify the public utilities of the exemption
status of the gross receipts received from, and the electricity used or
consumed by, the certified business enterprises.  Such exemption status shall
be effective within 3 months after certification.
(f) A municipality that imposes taxes upon public utilities or upon the
privilege of using or consuming electricity under this Section and whose
territory includes part of another unit of local government or a school
district may by ordinance exempt the other unit of local government or school
district from those taxes.
(g) The amendment of this Section by Public Act 84-127 shall take precedence
over any other amendment of this Section by any other amendatory Act passed by
the 84th General Assembly before August 1, 1985 (the effective date of Public Act 84-127).
(h) In any case in which, before July 1, 1992, a person engaged in
the business of transmitting messages through the use of mobile equipment,
such as cellular phones and paging systems, has determined the municipality
within which the gross receipts from the business originated by reference to
the location of its transmitting or switching equipment, then (i) neither the
municipality to which tax was paid on that basis nor the taxpayer that paid tax
on that basis shall be required to rebate, refund, or issue credits for any
such tax or charge collected from customers to reimburse the taxpayer for the
tax and (ii) no municipality to which tax would have been paid with respect to
those gross receipts if the provisions of Public Act 87-773 had been
in effect before July 1, 1992, shall have any claim against the taxpayer for
any amount of the tax.
(Source: P.A. 100-201, eff. 8-18-17.)
(65 ILCS 5/8-11-2.3)
Sec. 8-11-2.3. Municipal Motor Fuel Tax Law. Notwithstanding any other provision of law, in addition to any other tax that may be imposed, a municipality in a county with a population of over 3,000,000 inhabitants may also impose, by ordinance, a tax upon all persons engaged in the municipality in the business of selling motor fuel, as defined in the Motor Fuel Tax Law, at retail for the operation of motor vehicles upon public highways or for the operation of recreational watercraft upon waterways. The tax may be imposed, in one cent increments, at a rate not to exceed $0.03 per gallon of motor fuel sold at retail within the municipality for the purpose of use or consumption and not for the purpose of resale. The tax may not be imposed under this Section on aviation fuel, as defined in Section 3 of the Retailers' Occupation Tax 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.
A tax imposed pursuant to this Section, and all civil penalties that may be assessed as an incident thereof, shall be administered, collected, and enforced by the Department of Revenue in the same manner as the tax imposed under the Retailers' Occupation Tax Act, as now or hereafter amended, insofar as may be practicable; except that in the event of a conflict with the provisions of this Section, this Section shall control. The Department of Revenue shall have full power to: administer and enforce this Section; collect all taxes and penalties due hereunder; dispose of taxes and penalties so collected in the manner hereinafter provided; and determine all rights to credit memoranda arising on account of the erroneous payment of tax or penalty hereunder.
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 the notification from the Department. The refund shall be paid by the State Treasurer out of the Municipal Motor Fuel Tax Fund.
The Department shall immediately pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected under this Section. Those taxes and penalties shall be deposited into the Municipal Motor Fuel Tax Fund, a trust fund created in the State treasury. Moneys in the Municipal Motor Fuel Tax Fund shall be used to make payments to municipalities and for the payment of refunds under this Section.
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 for which taxpayers 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 under this Section from retailers within the municipality during the second preceding calendar month by the Department, plus an amount the Department determines is necessary to offset amounts that were erroneously paid to a different municipality, and not including an amount equal to the amount of refunds made during the second preceding calendar month by the Department on behalf of the municipality, and not including any amount that the Department determines is necessary to offset any amounts that were payable to a different municipality but were erroneously paid to the municipality, 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, 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.
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 the tax 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 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.
An ordinance adopted in accordance with the provisions of this Section in effect before the effective date of this amendatory Act of the 101st General Assembly shall be deemed to impose the tax in accordance with the provisions of this Section as amended by this amendatory Act of the 101st General Assembly and shall be administered by the Department of Revenue in accordance with the provisions of this Section as amended by this amendatory Act of the 101st General Assembly; provided that, on or before October 1, 2020, the municipality adopts and files a certified copy of a superseding ordinance that imposes the tax in accordance with the provisions of this Section as amended by this amendatory Act of the 101st General Assembly. If a superseding ordinance is not so adopted and filed, then the tax imposed in accordance with the provisions of this Section in effect before the effective date of this amendatory Act of the 101st General Assembly shall be discontinued on January 1, 2021.
This Section shall be known and may be cited as the Municipal Motor Fuel Tax Law.
(Source: P.A. 101-32, eff. 6-28-19; 101-604, eff. 12-13-19.)
(65 ILCS 5/8-11-2.5)
Sec. 8-11-2.5. Municipal tax review; requests for information.
(a) If a municipality has imposed a tax under Section 8-11-2, then the municipality, which may act through its designated auditor or agent, may conduct an audit of tax receipts collected from the public utility that is subject to the tax
or that collects the tax from purchasers on behalf of the municipality to determine whether the amount of tax that was paid by the public utility was accurate.
(b) Not more than once every 2 years, a municipality that has imposed a tax under Section 8-11-2 of this Code may, subject to the limitations and protections stated in the Local Government Taxpayers' Bill of Rights Act, make a written  request via e-mail to an e-mail address provided by the utility for any information from a utility in the format maintained by the public utility in the ordinary course of its business that the municipality reasonably requires in order to perform an audit under subsection (a). The information that may be requested by the municipality includes, without limitation:
(1) in an electronic format used  by the public     utility in the ordinary course of its business, the premises-specific and other information used by the public utility to determine the amount of tax due to the municipality, for a time period that includes the year in which the request is made and not more than 6 years immediately preceding that year, as appropriate for the period being audited, and which shall include for each customer premises in the municipality: (i) the premises address and zip code; (ii) the classification of the premises as designated by the public utility, such as residential, commercial, or industrial; (iii) monthly usage information sufficient to calculate taxes due, in therms, kilowatts, minutes, or other such other unit of measurement used to calculate the taxes; (iv) the taxes actually assessed, collected, and remitted to the municipality; (v) the first date of service for the premises, if that date occurred within the period being audited; and (vi) any tax exemption claimed for the premises and any additional information that supports a specific tax exemption, if the municipality requests that information, including the customer name and other relevant data; however, a public utility that is an electric utility may not provide other customer-specific information to the municipality; and
(2) the premises address for customer accounts that     the public utility's records indicate are: (i) in a bordering municipality, township, or unincorporated area (other than the City of Chicago), provided that the municipality provides the public utility a list of such bordering jurisdictions; or (ii) in any zip code with boundaries that include or are adjacent to the requesting municipality provided that the municipality provides the public utility a list of those zip codes; this item (ii) applies to requests made on or after September 1, 2022.  If any such customer is determined by the municipality and the utility to be located within the requesting municipality, then the public utility shall provide the additional information provided in paragraph (1) of this subsection (b).
Following the municipality's receipt of the information provided by the public utility pursuant to paragraphs (1) or (2) of this subsection (b), if a question or issue arises that can only be addressed by accessing customer-specific or additional information not described in this Section, then the utility shall attempt to resolve the question or issue without disclosing any customer-specific information.
(c) Each public utility must provide the information requested under subsection (b) within 45 days after the date of the request.
The time in which a public utility must provide the information requested under subsection (b) may be extended by an agreement between the municipality and the public utility.
(d) If an audit by the municipality or its agents finds an error by the public utility in the amount of taxes paid by the public utility, then the municipality must notify the public utility of the error. Any such notice must be  issued pursuant to Section 30 of the Local  Government Taxpayers' Bill of Rights Act or
 a lesser period of time from the date the tax was due that may be specified in the municipal
 ordinance imposing the tax. Upon such a notice, any audit shall be conducted pursuant to Section 35 of the Local Government Taxpayers' Bill of Rights Act subject to the timelines set forth in this subsection (d). The public utility  must submit a written response within 60 days after the date the notice was postmarked stating that it has corrected the error or stating the reason that the error is inapplicable or inaccurate. The municipality then has 60 days after the receipt of the public utility's response to review and contest the conclusion of the public utility. If the parties are unable to agree on the disposition of the audit findings within 120 days after the notification of the error to the public utility,   then either party may submit the matter for appeal as outlined in Section 40 of the Local Government Taxpayers' Bill of Rights Act.  If the appeals process does not produce a satisfactory result, then either party may pursue the alleged error in a court of competent jurisdiction.
(e) The public utility shall be liable to the municipality for unpaid taxes, including taxes that the public utility failed to properly bill to the customer subject to paragraph (2) of subsection (e-10) of this Section.  This subsection (e) does not limit a utility's right to an offsetting credit it would otherwise be entitled to, including that authorized by subsection (c) of Section 8-11-2 of this Code.  To the extent that a public utility's errors in past tax collections and payments relate to premises located in an area of the municipality that was annexed on or after March 17, 2023 (the effective date of Public Act 102-1144), however, the public utility shall only be liable for such errors beginning 60 days after the date that the municipality provided the public utility notice of the annexation, provided that the public utility provides municipalities with an email address to send annexation notices. A copy of the annexation ordinance and the map filed with the County Clerk sent to the email address provided by the public utility shall be deemed sufficient notice, but other forms of notice may also be sufficient.
(e-5)       Upon mutual agreement, a utility and municipality may use a web portal in lieu of email to receive notice of annexations and boundary changes. After December 31, 2025 for a gas public utility that serves more than 2,000,000 customers in Illinois and after December 31, 2022 for all other public utilities that serve more than 1,000,000 retail customers in Illinois, the public utilities shall provide a secure web portal for municipalities to use, and, thereafter, the web portals shall be used by all municipalities to notify the public utilities of annexations. The web portal must provide the municipality with an electronic record of all communications and attached documents that the municipality has submitted through the portal.
(e-10)   (1) No later than August 1, 2023, the Department of Revenue shall develop and publish a written process to be used by each public utility and each municipality that imposes a tax under Section 8-11-2 of this Code, which may act through its designated auditor or agent, under which:
(A)   by December 31, 2024, and on a regular schedule     thereafter to occur approximately every 5 years, each public utility shall work collaboratively with each municipality to develop and file with the Department of Revenue, a master list of all premises addresses in the municipality (including premises addresses with inactive accounts) that are subject to such tax and all accounts in the municipality that are exempt from such tax, provided that the final date for the first master list shall be extended, at the utility's request, to no later than December 31, 2026;
(B)   information is provided to the municipality to     facilitate development of the master list including information described in paragraph (1) of subsection (b) of this Section regarding all accounts (including premises addresses with inactive accounts) that the public utility's records show are in the municipality and the premises addresses in (i) any bordering municipality, (ii) any bordering township, or (iii) any zip code that is in any part in the municipality or that borders the municipality;
(C)   any dispute between the public utility and the     municipality related to the master list will be resolved;
(D)   on a semi-annual basis following the     development of the master list, each public utility shall provide to each municipality certain information that the municipality can use to nominate changes to the master list, including, but not limited to: (i) a list of any tax-related changes, such as the addition or removal of an exemption, or to the taxing jurisdiction, to any account on the master list; and (ii) new premises addresses within the municipality, any bordering municipality, in any bordering township, or in any zip code that is in any part in the municipality or that borders the municipality;
(E)   accounts nominated by the municipality to be     added or deleted from the master list may be submitted to the public utility and related disputes will be resolved;
(F)   changes may be made to the master list; and
(G)   the utility may file a master list based solely     on its records if the municipality fails to participate and such a municipality may request to restart the process prior to the end of the 5-year cycle.
(2)   No public utility is liable for any error in tax collections or payments due more than 60 days after the date that the first master list for the relevant municipality is filed with the Department of Revenue unless such error in tax collection or payment:
(A)   was related to a premises address on the master     list at the time of the error;
(B)    was related to an area of the municipality     annexed on or after March 17, 2023 (the effective date of Public Act 102-1144), notice of which was properly provided to the public utility pursuant to the procedures set forth in subsection (e); or
(C)   resulted from the public utility's failure to     comply with the process established in this subsection (e-10).
(3)   If the public utility uses a portal as set forth in subsection (e-5), all lists, changes affecting tax collection and remission, proposed corrections, and reports shall be provided through such portal.
(e-15)   If a customer paid a tax to a municipality that the customer did not owe or was in excess of the tax the customer owed, then the customer may, to the extent allowed by Section 9-252 of the Public Utilities Act, recover the tax or over payment from the public utility, and any amount so paid by the public utility may be deducted by that public utility from any taxes then or thereafter owed by the public utility to that municipality.
(e-20)   (1) Any court of competent jurisdiction shall have the authority to resolve a claim by a municipality that a public utility materially failed to comply with the requirements of subsections (b) or (c) of this Section  If a court finds, after notice and hearing, that a public utility (i) caused a material delay in providing information properly requested under such subsections or (ii) omitted a material portion of information properly requested, then, if the claim relates to subsections (b) or (c), the court shall assess a penalty on the utility of up to $50,000 per audit, or up to $10,000 per audit for a utility that served less than 100,000 retail customers on the date of the audit notice, or, if the claim relates to subsection (e-10), up to $50,000 per 5-year master list cycle or up to $10,000  per cycle for a utility that served less than 100,000 retail customers on the date such master list was filed with the Department, which penalty shall be paid by the public utility to the municipality.  Notwithstanding anything to the contrary, a penalty assessed pursuant to this subsection shall be the exclusive remedy for the conduct that is the subject of the claim.  A penalty assessed under this subsection shall bar and prohibit pursuit of any other penalty, fine, or recovery related to the conduct for which the penalty was assessed.
(2) No penalty shall be assessed by the Department pursuant to this subsection if the Department finds that a delay or omission was immaterial or de minimis.
(3)  Any penalties or fines paid by a public utility pursuant to this subsection shall not be recoverable through the utility's rates.
(4)  (Blank).
(f) All account-specific and premises-specific information provided by a public utility under this Section may be used only for the purpose of an audit of taxes conducted under this Section and the enforcement of any related tax claim.  All such information must be held in strict confidence by the municipality
and its agents and may not be disclosed to the public under the Freedom of Information Act or under any other similar statutes allowing for or requiring public disclosure.
(g) The provisions of this Section shall not be construed as diminishing or replacing any civil remedy available to a municipality, taxpayer, or tax collector.
(h) This Section does not apply to any municipality having a population greater than 1,000,000.
(i) The changes to subsection (e)  and paragraph (2) of subsection (e-10) of this Section made by Public Act 102-1144 apply to taxes due on or after August 1, 2022.  The remaining changes to this Section made by Public Act 102-1144 apply on or after March 17, 2023 (the effective date of Public Act 102-1144).
(j) As used in this Section:
"Customer-specific information" means the name, phone number, email address, and banking information of a customer. "Customer-specific information" includes the load-shape data associated with a customer account. "Customer-specific information" does not include the tax-exempt status of the premises and the name of tax-exempt customers.
"Premises-specific information" means any information, including billing and usage data, associated with a premises address that is not customer-specific information.
"Premises address" includes the jurisdiction to which the address is currently coded by the public utility for municipal tax purposes.
(Source: P.A. 102-1144, eff. 3-17-23; 103-9, eff. 6-7-23.)
(65 ILCS 5/8-11-3) (from Ch. 24, par. 8-11-3)
Sec. 8-11-3. 
		
		The corporate authorities of any municipality may tax persons
engaged in the business of selling cigarettes at retail, at a rate of not
exceeding one cent per package of 20 cigarettes and may provide for the
administration and enforcement of such tax, and for the collection thereof
from the persons subject to the tax, or their suppliers, or from taxpayers
and suppliers, as the corporate authorities determine to be necessary or
practicable for the effective administration of the tax.
The tax herein authorized may not be levied during any period in which
there is in force a municipal retailers' occupation tax levied under
authority of Section 8-11-1. The adoption of a municipal retailers'
occupation tax shall not, however, affect liabilities, obligations and
penalties incurred by any persons pursuant to an ordinance or resolution
imposing a cigarette tax under this Section 8-11-3 and providing for its
administration and enforcement, in respect to any period during which the
cigarette tax has been in effect. Nor shall any suit, action or remedy
instituted or authorized under the cigarette tax ordinance or resolution be
abated or otherwise affected by the adoption of a municipal retailers'
occupation tax ordinance or resolution.
(Source: Laws 1961, p. 576.)
(65 ILCS 5/8-11-4) (from Ch. 24, par. 8-11-4)
Sec. 8-11-4. 
		
		Each owner of a motor vehicle or motor bicycle may be required by any such
city, village, or town within which he
resides to pay a regular tax or license fee for the use of such motor vehicle or
motor bicycle.
In place of the regular license fee, any city, village or incorporated
town may provide for a motor vehicle tax or license fee at a reduced rate
for residents age 65 or over.
Any city, village or incorporated town of 40,000 or more inhabitants may
appropriate monies annually from such funds, for the construction,
maintenance and operation of testing stations for the inspection of
equipment of motor vehicles as authorized by Section 11-40-2. The balance
of such funds in cities, villages and incorporated towns of 40,000 or more
inhabitants, and the total of such funds in other cities, incorporated
towns and villages shall be used for the purpose of improving, paving,
repairing or maintaining the streets and other public roadways within such
city, incorporated town or village, provided, that the actual cost of the
collection of such fees and the disbursement thereof may be deducted from
the total amount collected and in cities and villages of more than 3,000
inhabitants, not to exceed 35% of such fees may be used also for payment of
salaries and wages of policemen engaged in the duty of regulating traffic.
This amendatory Act of 1973 is not a limit upon any municipality which
is a home rule unit.
(Source: P.A. 83-65.)
(65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
Sec. 8-11-5. Home Rule Municipal Service Occupation Tax Act. The
corporate authorities of a home rule municipality may
impose a tax upon all persons engaged, in such municipality, in the
business of making sales of service at the same rate of tax imposed
pursuant to Section 8-11-1, 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 imposed, such 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 Service Occupation Tax Act (or at the 0% rate imposed under this amendatory Act of the 102nd General Assembly). Beginning December 1, 2019, this tax may not be 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 shall be excluded from 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 exception 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 State.  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
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
(except that credit memoranda issued hereunder may not be used to
discharge any State tax liability), 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 tax may be imposed by a home rule municipality pursuant to this
Section unless such municipality also imposes a tax at the same rate
pursuant to Section 8-11-1 of this Act.
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 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 forthwith 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 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 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.
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.  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.
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 such 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 such 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.
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 which has
superseded a civil township.
This Section shall be known and may be cited as the Home Rule Municipal
Service Occupation Tax Act.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
(65 ILCS 5/8-11-6) (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.)
(65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a)
Sec. 8-11-6a. Home rule municipalities; preemption of certain taxes. Except
as provided in Sections 8-11-1, 8-11-5, 8-11-6, 8-11-6b, 8-11-6c, 8-11-23, and 11-74.3-6 on and after
September 1, 1990, no home rule municipality has the
authority to impose, pursuant to its home rule authority, a retailer's
occupation tax, service occupation tax, use tax, sales tax or other
tax on the use, sale or purchase of tangible personal property
based on the gross receipts from such sales or the selling or purchase
price of said tangible personal property. Notwithstanding the foregoing,
this Section does not preempt any home rule imposed tax such as the
following: (1) a tax on alcoholic beverages, whether based on gross receipts,
volume sold or any other measurement; (2) a tax based on the number of units
of cigarettes or tobacco products (provided, however, that a home rule
municipality that has not imposed a tax based on the number of units of
cigarettes or tobacco products before July 1, 1993, shall not impose such a tax
after that date); (3) a tax, however measured, based on
the use of a hotel or motel room or similar facility; (4) a tax, however
measured, on the sale or transfer of real property; (5) a tax, however
measured, on lease receipts; (6) a tax on food prepared for immediate
consumption and on alcoholic beverages sold by a business which provides
for on premise consumption of said food or alcoholic beverages; or (7)
other taxes not based on the selling or purchase price or gross receipts
from the use, sale or purchase of tangible personal property. This Section does not preempt a home rule municipality with a population of more than 2,000,000 from imposing a tax, however measured, on the use, for consideration, of a parking lot, garage, or other parking facility. This Section
is not intended to affect any existing tax on food and beverages prepared
for immediate consumption on the premises where the sale occurs, or any
existing tax on alcoholic beverages, or any existing tax imposed on the
charge for renting a hotel or motel room, which was in effect January 15,
1988, or any extension of the effective date of such an existing tax by
ordinance of the municipality imposing the tax, which extension is hereby
authorized, in any non-home rule municipality in which the imposition of
such a tax has been upheld by judicial determination, nor is this Section
intended to preempt the authority granted by Public Act 85-1006. On and after December 1, 2019, no home rule municipality has the authority to impose, pursuant to its home rule authority, a tax, however measured, on sales of aviation fuel, as defined in Section 3 of the Retailers' Occupation Tax Act, unless the tax is not subject to the revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133, or unless the tax revenue is expended for airport-related purposes.  For purposes of this Section, "airport-related purposes" has the meaning ascribed in Section 6z-20.2 of the State Finance Act.  Aviation fuel shall be excluded from tax only if, and 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. This
Section is a limitation, pursuant to subsection (g) of Section 6 of Article
VII of the Illinois Constitution, on the power of home rule units to tax. The changes made to this Section by Public Act 101-10 are a denial and limitation of home rule powers and functions under subsection (g) of Section 6 of Article VII of the Illinois Constitution.
(Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
(65 ILCS 5/8-11-6b)
Sec. 8-11-6b. 
		Home rule soft drink taxes.
(a) Except as provided in Sections 8-11-1, 8-11-5 and 8-11-6, or as provided
in this Section, no home rule municipality has the authority to impose,
pursuant to its home rule authority, a tax on the sale, purchase, or use of
soft
drinks regardless of whether the measure of the tax is selling price, purchase
price, gross receipts, unit of volumetric measure, or any other measure. For
purposes of this subsection, the
term "soft drink" has the meaning set forth in Section 2-10 of the
Retailers' Occupation Tax Act, as may be amended from time to time, except that
the term shall not be limited to drinks contained in a closed or sealed bottle,
can, carton, or container. This Section is a denial and limitation, under
subsection
(g) of Section 6 of Article VII of the Illinois Constitution, on the power of
home rule units to tax.
(b) The corporate authorities of a home rule municipality
with a population in excess of 1,000,000 may impose a tax, which shall not take
effect prior to April 1, 1994, upon all persons engaged in the business of
selling soft drinks (other than fountain soft drinks) at retail in the
municipality based on the gross receipts from those sales made in the course of
such business.  If imposed, the tax shall only be in 1/4% increments and shall
not exceed 3%. For purposes of this subsection, the term "soft drink"
has the meaning set forth in
Section 2-10 of the Retailers' Occupation Tax Act, as may be amended from time
to time, except that the term shall not be limited to drinks contained in a
closed or sealed bottle, can, carton or container; the term "fountain soft
drinks" means soft drinks which are prepared by the retail seller of the
soft drinks by mixing syrup or concentrate with water, by hand or through a
soft drink dispensing machine, at or near the point and time of sale to the
retail purchaser; and the term "soft drink dispensing machine" means
a device which mixes soft
drink syrup or concentrate with water and
dispenses the mixture into an open container as a ready to drink soft drink.
The tax imposed under this subsection and all civil penalties that may be
assessed as an incident to that tax shall be collected and enforced by the
Illinois Department of Revenue.  The Department shall have full power to
administer and enforce this subsection, to collect all taxes and penalties so
collected in the manner provided in this subsection, and to determine all
rights to credit memoranda arising on account of the erroneous payment of tax
or penalty under this subsection. In the administration of and compliance with
this subsection, the Department and persons who are subject to this subsection
shall have the same rights, remedies, privileges, immunities, powers and
duties, shall be subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms, and shall employ
the same modes of procedure applicable to the Retailers' Occupation Tax as are
prescribed in Sections 1, 2 through 2-65 (in respect to all provisions of those
Sections other than the State rate of taxes), 2c, 2h, 2i, 3 (except as to the
disposition of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13 and, until January 1, 1994,
13.5 of the Retailers' Occupation Tax Act, and on and after January 1, 1994,
all applicable provisions of the
Uniform Penalty and Interest Act that are not inconsistent with this
subsection, as fully as if provisions contained in those Sections of the
Retailers' Occupation Tax Act were set forth in this subsection.
Persons subject to any tax imposed under the authority granted by this
subsection may reimburse themselves for their seller's tax liability under this
subsection by separately stating that tax as an additional charge, which charge
may be stated in combination, in a single amount, with State taxes that sellers
are required to collect under the Use Tax Act pursuant to bracket schedules as
the Department may prescribe.  The retailer filing the return shall, at the
time of filing the return, pay to the Department the amount of tax imposed
under this subsection, less the discount of 1.75%, which is allowed to
reimburse the retailer for the expenses incurred in keeping records, preparing
the filing returns, remitting the tax, and supplying data to the Department on
request.
Whenever the Department determines that a refund should be made under this
subsection to a claimant instead of issuing a credit memoranda, the Department
shall notify the State Comptroller, who shall cause a warrant 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 Soft Drink Retailers' Occupation 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 amount
to be paid 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 collected hereunder during the second preceding calendar
month by the Department, less any amounts determined by the Department to be
necessary for the payment of refunds, and less 4% for the first year the tax is
in effect and 2% thereafter of such balance, which sum
shall be deposited by the State Treasurer into the Tax Compliance and
Administration Fund in the State treasury from which it shall be appropriated
to the Department to cover the costs of the Department in administering and
enforcing the provisions of this subsection.  Within 10 days after
receipt by the Comptroller of the certification, the Comptroller shall cause
the orders to be drawn for the respective amount 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
the State.
A certificate of registration issued by the Illinois Department of Revenue to
a retailer under the Retailers' Occupation Tax Act shall permit the registrant
to engage in a business that is taxed under the tax imposed under this
subsection and no additional registration shall be required under the ordinance
imposing a tax or under this subsection.
A certified copy of any ordinance imposing or discontinuing any tax under
this subsection or effecting a change in the rate of that tax shall be filed
with the Department, whereupon the Department shall proceed to administer and
enforce this subsection on behalf of such municipality as of the first day of
February following the date of filing.  This tax shall be known and cited as
the Home Rule Municipal Soft Drink Retailers' Occupation Tax.
(c) The corporate authorities of a home rule
municipality with a population in excess of 1,000,000 may impose a tax, which
shall not take effect prior to April 1, 1994, on persons engaged in the
business of selling fountain soft drinks at retail at a rate not to exceed 9%
of the cost price of the fountain soft drinks at retail in such municipality.
For purposes of this subsection, the term "soft drink" has the meaning set
forth in Section 2-10 of the
Retailers' Occupation Tax Act, as may be amended from time to time, except that
the term shall not be limited to drinks contained in a closed or sealed bottle,
can,
carton, or container; the term "fountain soft drinks" means soft drinks
which are prepared by the retail seller of the soft drinks by mixing soft drink
syrup or concentrate with water, by hand or through a soft drink dispensing
machine at or near the point and time of sale to the retail purchaser; the term
"soft
drink dispensing machine" means a device which mixes soft drink syrup or
concentrate with water and dispenses such mixture into an open container as a
ready to drink soft drink; the term "sold at retail" shall mean any transfer
of the ownership or title to tangible personal property to a purchaser, for the
purpose of use or consumption, and not for the purpose of resale, for valuable
consideration;
the term "cost price of
the fountain soft drinks" means the consideration paid by the retail
seller of the fountain soft drink, valued in money, whether paid in money or
otherwise, including cash, credits and services, and shall be determined
without any deduction on account of the supplier's cost of the property sold or
on account or any other expenses incurred by the supplier, for the purchase of
soft drink syrup or concentrate which is designed to be further mixed with
water before it is consumed as a soft drink; and the term "supplier" means
any person who makes sales of soft drink syrup or concentrate to a retail
seller of fountain soft drinks for purposes of resale as fountain soft drinks.
The tax authorized by this subsection shall be collected, enforced, and
administered by the municipality imposing the tax. Persons subject to the tax
may reimburse themselves for their tax
liability
hereunder by separately stating an amount equal to the tax as an additional
charge to their retail purchasers or may include such amount as part of the
selling price of the soft drink.  The municipality imposing the tax shall
provide for its collection from the person subject
to the tax by requiring that the supplier to the person subject to the tax
collect and remit the tax to the municipality.  If the supplier fails to
collect the tax or if the person subject to the tax fails to pay the tax to its
supplier, the person subject to the tax shall make the tax payment directly to
the municipality.  Payment of the tax by the retailer to the supplier shall
relieve the retailer of any further liability for the tax.
(d) If either tax imposed or authorized by this Section 8-11-6b is repealed
by the General Assembly or has its maximum rate reduced by the General
Assembly, or is declared unlawful or unconstitutional on its face by any court
of competent jurisdiction after all appeals have been exhausted or the time to
appeal has expired, then this Section 8-11-6b is automatically repealed
and no longer effective without further action by the General Assembly.
(e) Notwithstanding the preemption of taxes on the sale, purchase or use
of soft drinks, taxes on the sale, purchase, or use of soft drinks which had
been imposed by a municipality prior to the effective date of this amendatory
Act of 1993 are specifically authorized under this Section for sales made on or
after the effective date of this amendatory Act of 1993 through March 31,
1994.
(Source: P.A. 88-507.)
(65 ILCS 5/8-11-6c)
Sec. 8-11-6c. Home Rule food and beverage tax to support parking facilities.
(a)   In addition to any other tax that it is authorized to impose, a home rule municipality that has not imposed a tax under Section 8-11-1 or 8-11-5 may impose a tax, as limited by this Section, on the gross receipts from the sale of alcoholic beverages, soft drinks, and food that has been prepared for immediate consumption.
(b) If imposed, the tax may be imposed only for a defined and limited period of time and must be limited to a defined geographic area within the municipality. The defined geographic area must be a contiguous area of no more than one square mile. The tax may be imposed only in 0.25% increments, and the rate of tax may not exceed 2%.
At the time that the ordinance imposing the tax is adopted, the municipality must have obtained the certified written consent of at least three-fourths of the operators of the businesses upon which the tax will be imposed. This tax may not be imposed for longer than 25 years after the municipality first levies the tax.
(c) The municipality must maintain the proceeds of the tax in a separate account and may use those moneys only for the costs associated with land acquisition, design, construction, and maintenance of parking facilities within the defined geographic area.
(d) The tax shall be administered by the municipality imposing it.
(Source: P.A. 95-544, eff. 8-28-07.)
(65 ILCS 5/8-11-7) (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.)
(65 ILCS 5/8-11-8) (from Ch. 24, par. 8-11-8)
Sec. 8-11-8. 
		
		The corporate authorities of a municipality may impose a
tax upon the privilege of using, in such municipality, an automobile which
is rented from a rentor outside Illinois, and which is titled or registered
with an agency of this State's government, at a rate not to exceed 1% of
the rental price of such automobile.  Such tax shall be collected from persons
whose Illinois address for titling or registration purposes is given as
being in such municipality.  Such tax shall be collected by the Department
of Revenue for any municipality imposing such tax. Such tax must be paid
to the State, or an exemption determination must be obtained from the Department
of Revenue, 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 such 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 to 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 and 4 (except
provisions pertaining to the State rate of tax; and with relation to the
provisions of the "Use Tax Act" referred to therein, except provisions concerning
collection or refunding of the tax by retailers, and except the provisions
of Section 19 pertaining to claims by retailers and except the last paragraph
concerning refunds, 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", enacted by the Eighty-second General Assembly,
as the same are now or may hereafter be amended, which are not inconsistent
with this Section, as fully as if provisions contained in those Sections
of said Act were set forth herein.
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, 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 taxes hereunder from persons 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 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 State 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 State Comptroller, of the disbursement
certification to the municipalities and the General Revenue Fund, provided
or 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 such certification.
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 second 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 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.
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 Use Tax Act".
(Source: P.A. 84-149.)
(65 ILCS 5/8-11-9)
Sec. 8-11-9. (Repealed).
(Source: P.A. 84-149. Repealed by P.A. 98-584, eff. 8-27-13.)
(65 ILCS 5/8-11-9.1) (from Ch. 24, par. 8-11-9.1)
Sec. 8-11-9.1. 
		
		Except as hereinafter provided, the Department
of Revenue shall publish and make available
to each municipality a quarterly report in which the Department of Revenue
shall list any municipal retailers' occupation taxes collected pursuant
to Section 8-11-1 of this Code, service occupation taxes collected
pursuant to Section 8-11-5 of this Code and use taxes collected pursuant
to Section 8-11-6 of this Code, during the previous quarter and such list
shall be itemized according to the following merchandise subject areas:
1.  general merchandise;
2.  food;
3.  drinking and eating places;
4.  apparel;
5. furniture and home furnishings and all other household appliances
including but not limited to desks, china, glassware, drapery, upholstery,
radios, televisions and any repair for any such items;
6. lumber, hardware, building and highway construction and all other kinds
of construction including but not limited to roofing, masonry, wrecking,
demolition, excavating, plumbing and water well drilling;
7. automobiles, both new and used, and automobile accessories, parking
lots, repairs, gasoline and service stations;
8. drugs, chemicals, paper, jewelry, alcoholic beverages, antiques, sporting
goods, books and stationery;
9. all manufacturers; and
10. farm crops and livestock, timber, printing, crude petroleum, oil,
natural gas, gas liquids and any and all items that are not listed in
paragraphs 1 through 9 of this Section that are necessary in order to give
municipalities a complete picture of the taxes to be expected.  Such report
shall be distributed to all municipal governments no later than 90 days
after the last due date for tax returns for the final month of the quarter
for which the report was prepared.  The Department of Revenue may combine
the reports for all of the municipalities into a single report.
This Section shall not be so construed as to require such listing to
disclose the information in any individual return in violation of Section
11 of the "Retailers' Occupation Tax Act".
(Source: P.A. 85-293.)
(65 ILCS 5/8-11-11) (from Ch. 24, par. 8-11-11)
Sec. 8-11-11. 
		
		In addition to any other taxes authorized by law, the corporate
authorities of a municipality may impose a tax upon the privilege of
leasing motor vehicles within the municipality to a lessee on a daily
or weekly basis
in an amount not to exceed $2.75 per vehicle per rental period
specified in the lease agreement.  The tax may be stated separately in
such lease agreement, invoice or bill.
The ordinance or resolution imposing any such tax shall provide for the
means of its administration, collection and enforcement by the municipality.
As used in this Section, "municipality" means a city, village or
incorporated town, including an incorporated town which has superseded a
civil township, and "motor vehicle" has the meaning ascribed to it in
Section 1-146 of The Illinois Vehicle Code.
(Source: P.A. 84-1479.)
(65 ILCS 5/8-11-15) (from Ch. 24, par. 8-11-15)
Sec. 8-11-15. 
		
		(a) The corporate authorities of a municipality of over
100,000 inhabitants may, upon approval of the electors of the municipality
pursuant to subsection (b), impose a tax of one cent per gallon on motor
fuel sold at retail within such municipality.
A tax imposed pursuant to this Section shall be paid in addition to any
other taxes on such motor fuel.
(b) The corporate authorities of the municipality may by resolution call
for the submission to the electors of the municipality of the question of
whether the municipality shall impose such tax.  Such question shall be
certified by the municipal clerk to the election authority in accordance
with Section 28-5 of The Election Code. The
question shall be in substantially the following form:
--------------------------------------------------------------
Shall the city (village or
incorporated town) of .......     YES
impose a tax of one cent per   ------------------------------
gallon on motor fuel sold at       NO
retail within its boundaries?
--------------------------------------------------------------
If a majority of the electors in the municipality voting upon the
question vote in the affirmative, such tax shall be imposed.
(c) The purchaser of the motor fuel shall be liable for payment of a tax
imposed pursuant to this Section. This Section shall not be construed to
impose a tax on the occupation of persons engaged in the sale of motor fuel.
If a municipality imposes a tax on motor fuel pursuant to this Section,
it shall be the duty of any person engaged in the retail sale of
motor fuel within such municipality to collect such tax from the purchaser
at the same time he collects the purchase price of the motor fuel and to
pay over such tax to the municipality as prescribed by the ordinance of the
municipality imposing such tax.
(d) For purposes of this Section, "motor fuel" shall have the same
meaning as provided in the "Motor Fuel Tax Law".
(Source: P.A. 84-1099.)
(65 ILCS 5/8-11-16) (from Ch. 24, par. 8-11-16)
Sec. 8-11-16. 
		
		The Department of Revenue shall submit to each
municipality each year a list of those persons within that municipality who
are registered with the Department under the Retailers' Occupation Tax Act.
The list shall indicate the street address of each retail outlet operated
in the municipality by the persons so registered and the name under which
the retailer conducts business, if different from the corporate name.  The
municipal clerk shall forward any changes or corrections to the list to the
Department within 6 months.  The Department shall update and correct its
records to reflect such changes, or notify the municipality in writing that
the suggested changes are erroneous, within 90 days.  The Department shall
also provide monthly updates to each municipality showing additions or
deletions to the list of retail outlets within the municipality.  The
Department shall provide a copy of the annual listing herein provided for
contiguous jurisdictions when a municipality so requests.  The list
required by this Section shall contain only the names and street addresses
of persons who are registered with the Department and shall not include the
amount of tax paid by such persons.  The list required by this Section
shall be provided to each municipality no later than September 1 annually.
When certifying the amount of a monthly disbursement to a municipality
under Section 8-11-1, 8-11-5, 8-11-6 of this Act or Section 6z-18 of "An
Act in relation to State finance", the Department shall increase or
decrease such 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.
The Department of Revenue must upon the request of any municipality
received pursuant to the provisions of this paragraph furnish to such
municipality data setting forth the aggregate amount of retailers'
occupation tax collected on behalf of such municipality from any shopping
center identified in such request and located within such municipality for
each month beginning with the first month following the month within which
such a request is received by the Department, provided that such data may
be provided only with respect to shopping centers (1) which consist of
50 or more persons registered with the Department to pay Retailers'
Occupation Tax, and (2) where the developers or owners thereof or their
predecessors in interest have entered into written agreements with the
municipality to transfer property to or perform services for or on behalf
of such municipality in exchange for payments based solely or in part on
the amount of retailers' occupation tax collected on behalf of the municipality
from persons within such shopping centers.  Data given pursuant to this
paragraph shall not identify by amounts the individual sources of such
taxes.  A request for data pursuant to this paragraph shall first be
submitted to the Department of Revenue by the Municipal Clerk, City Council
or Village Board of Trustees.  The Department of Revenue shall review each
such request to determine whether the requirements of item (2) of the first
sentence of this paragraph have been met and, within 30 days following its
receipt of such a request, shall either certify that the request meets such
requirements, or notify the person submitting the request that the request
does not meet such requirements.
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, and "shopping center" means a group of
retail stores and other business and service establishments in an
integrated building arrangement operated under common ownership or diverse
ownership under unified control involving common parking areas and mutual
easements.
(Source: P.A. 91-51, eff. 6-30-99.)
(65 ILCS 5/8-11-17) (from Ch. 24, par. 8-11-17)
Sec. 8-11-17. 
		(Repealed).
(Source: P.A. 92-526, eff. 7-1-02.  Repealed internally, eff. 1-1-03.)
(65 ILCS 5/8-11-18) (from Ch. 24, par. 8-11-18)
Sec. 8-11-18. 
		(Repealed).
(Source: P.A. 88-597, eff. 8-28-94.  Repealed internally, eff. 9-6-97.)
(65 ILCS 5/8-11-20)
Sec. 8-11-20. 
		Economic incentive agreements. 
		The corporate authorities
of a municipality may enter into an economic incentive agreement relating to
the development or
redevelopment of land within the corporate limits of the municipality.  Under
this agreement, the municipality may agree to share or rebate a
portion of any retailers' occupation taxes received by the municipality that
were generated by the development or redevelopment over a finite period of
time.  Before entering into the agreement authorized by this Section, the
corporate authorities shall make the following findings:
(1) If the property subject to the agreement is vacant:
(A) that the property has remained vacant for at     least one year, or
(B) that any building located on the property was     demolished within the last year and that the building would have qualified under finding (2) of this Section;
(2) If the property subject to the agreement is currently developed:
(A) that the buildings on the property no longer     comply with current building codes, or
(B) that the buildings on the property have remained     less than significantly unoccupied or underutilized for a period of at least one year;
(3) That the project is expected to create or retain job opportunities
within the municipality;
(4) That the project will serve to further the development of adjacent
areas;
(5) That without the agreement, the project would not be possible;
(6) That the developer meets high standards of creditworthiness and
financial strength as demonstrated by one or more of the following:
(A) corporate debenture ratings of BBB or higher by     Standard & Poor's Corporation or Baa or higher by Moody's Investors Service, Inc.;
(B) a letter from a financial institution with assets     of $10,000,000 or more attesting to the financial strength of the developer; or
(C) specific evidence of equity financing for not     less than 10% of the total project costs;
(7) That the project will strengthen the commercial sector of the
municipality;
(8) That the project will enhance the tax base of the municipality; and
(9) That the agreement is made in the best interest of the municipality.
(Source: P.A. 92-263, eff. 8-7-01.)
(65 ILCS 5/8-11-21)
Sec. 8-11-21. Agreements to share or rebate occupation taxes.
(a) On and after
June 1, 2004, the corporate authorities of a municipality shall
not enter into any agreement to share or rebate
any
portion of retailers' occupation taxes generated by retail sales of tangible
personal
property if: (1) the tax on those retail sales, absent the agreement,
would have been paid to another unit of local government; and (2) the
retailer maintains, within that other unit of local government, a
retail location from which the tangible personal property is delivered to
purchasers, or a warehouse from which the tangible personal property is
delivered to purchasers. Any unit of local government
denied retailers' occupation tax revenue because of an agreement that violates
this Section may file an action in circuit court against only the municipality.
Any agreement entered into prior to
June 1,
2004 is not affected by this amendatory Act of the 93rd General Assembly.
Any unit of
local government that prevails in the circuit court action is entitled to
damages in
the amount of the tax revenue it was denied as a result of the agreement,
statutory interest, costs, reasonable attorney's fees, and an amount equal to
50% of the
tax.
(b) On and after the effective date of this amendatory Act of the 93rd
General Assembly, a home rule unit shall not enter into any agreement
prohibited
by this Section. This Section is a denial and limitation of home rule powers
and
functions under subsection (g) of Section 6 of Article VII of the Illinois
Constitution.
(c) Any municipality that enters into an agreement to share or rebate
any
portion of retailers' occupation taxes generated by retail sales of tangible
personal
property must complete and submit a report by electronic filing to the Department of Revenue within 30 days after the execution of the agreement. Any municipality that has entered into such an agreement before the effective date of this amendatory Act of the 97th General Assembly that has not been terminated or expired as of the effective date of this amendatory Act of the 97th General Assembly shall submit a report with respect to the agreements within 90 days after the effective date of this amendatory Act of the 97th General Assembly.
Any agreement entered into on or after the effective date of this amendatory Act of the 98th General Assembly is not valid until the municipality entering into the agreement complies with the requirements set forth in this subsection.  Any municipality that fails to comply with the requirements set forth in this subsection within the 30 days after the execution of the agreement shall be responsible for paying to the Department of Revenue a delinquency penalty of $20 per day for each day the municipality fails to submit a report by electronic filing to the Department of Revenue.  A municipality that has previously failed to report an agreement in effect on the effective date of this subsection will begin to accrue a delinquency penalty for each day the agreement remains unreported beginning on the effective date of this subsection. The Department of Revenue may adopt rules to implement and administer these penalties.
(d) The report described in this Section shall be made on a form to be supplied by the Department of Revenue and shall contain the following:
(1) the names of the municipality and the business     entering into the agreement;
(2) the location or locations of the business within     the municipality;
(3) a statement, to be answered in the affirmative or     negative, as to whether or not the company maintains additional places of business in the State other than those described pursuant to paragraph (2);
(4) the terms of the agreement, including (i) the     manner in which the amount of any retailers' occupation tax to be shared, rebated, or refunded is to be determined each year for the duration of the agreement, (ii) the duration of the agreement, and (iii) the name of any business who is not a party to the agreement but who directly or indirectly receives a share, refund, or rebate of the retailers' occupation tax; and
(5) a copy of the agreement to share or rebate any     portion of retailers' occupation taxes generated by retail sales of tangible personal property.
An updated report must be filed by the municipality within 30 days after the execution of any amendment made to an agreement.
Reports filed  with the Department pursuant to this Section shall not constitute tax returns.
(e) The Department and the municipality shall redact the sales figures, the amount of sales tax collected, and the amount of sales tax rebated prior to disclosure of information contained in a report required by this Section or the Freedom of Information Act.  The information redacted shall be exempt from the provisions of the Freedom of Information Act.
(f) All reports, except the copy of the agreement, required to be filed with the Department of Revenue pursuant to this Section shall be posted on the Department's website within 6 months after the effective date of this amendatory Act of the 97th General Assembly. The website shall be updated on a monthly basis to include newly received reports.
(Source: P.A. 97-976, eff. 1-1-13; 98-463, eff. 8-16-13; 98-1098, eff. 8-26-14.)
(65 ILCS 5/8-11-22)
Sec. 8-11-22. (Repealed).
(Source: P.A. 101-10, eff. 6-5-19. Repealed by P.A.  101-604, eff. 12-13-19.)
(65 ILCS 5/8-11-23)
Sec. 8-11-23. Municipal Cannabis Retailers' Occupation Tax Law.
(a) This Section may be referred to as the Municipal Cannabis Retailers' Occupation Tax Law. The corporate authorities of any municipality may, by ordinance, impose a tax upon all persons engaged in the business of selling cannabis, other than cannabis purchased under the Compassionate Use of Medical Cannabis Program Act, at retail in the municipality on the gross receipts from these sales made in the course of that business. If imposed, the tax may not exceed 3% of the gross receipts from these sales and shall only be imposed in 1/4% increments. The tax imposed under this Section and all civil penalties that may be assessed as an incident of the tax shall be collected and enforced by the Department of Revenue. The Department of Revenue 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 under this Section. 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), 2a, 2b, 2c, 2i, 3 (except as to the disposition of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 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.
(b) 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 any State tax that sellers are required to collect.
(c) Whenever the Department of Revenue determines that a refund should be made under this Section to a claimant instead of issuing a credit memorandum, the Department of Revenue 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 of Revenue.
(d) The Department of Revenue shall immediately pay over to the State Treasurer, ex officio, as trustee, all taxes and penalties collected hereunder for deposit into the Local Cannabis Retailers' Occupation Tax Trust Fund.
(e) On or before the 25th day of each calendar month, the Department of Revenue shall prepare and certify to the Comptroller the amount of money to be disbursed from the Local Cannabis Retailers' Occupation Tax Trust Fund to municipalities from which retailers have paid taxes or penalties under this Section during the second preceding calendar month. The amount to be paid to each municipality shall be the amount (not including credit memoranda) collected under this Section from sales made in the municipality during the second preceding calendar month, plus an amount the Department of Revenue 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, 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.
(f) An ordinance or resolution imposing or discontinuing a tax under this Section or effecting a change in the rate thereof that is adopted on or after June 25, 2019 (the effective date of Public Act 101-27) and for which a certified copy is  filed with the Department on or before April 1, 2020 shall be administered and enforced by the Department beginning on July 1,  2020. For ordinances filed with the Department after April 1, 2020, an ordinance or resolution imposing or discontinuing a tax 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 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.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
(65 ILCS 5/Art. 8 Div. 12 heading)
DIVISION 12.  
		FINANCIALLY DISTRESSED CITY LAW
(65 ILCS 5/8-12-1) (from Ch. 24, par. 8-12-1)
Sec. 8-12-1. 
		
		This Division 12 may be cited as the
Financially Distressed City Law.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-2) (from Ch. 24, par. 8-12-2)
Sec. 8-12-2. 
		
		(a) Pursuant to the authority of the General Assembly to provide
for the public health, safety and welfare, the General Assembly hereby
finds and declares that it is the public policy and a public purpose of the
State to offer assistance to a financially distressed city so that it may
provide for the health, safety and welfare of its citizens, pay when due
principal and interest on its debt obligations, meet financial obligations
to its employees, vendors and suppliers, and provide for proper financial
accounting  procedures, budgeting and taxing practices, as well as
strengthen the human and economic development of the city.
(b) It is the purpose of this Division to provide a secure financial
basis for the continued operation of a financially distressed city.  The
intention of the General Assembly, in enacting this legislation is to
establish sound, efficient and generally accepted accounting, budgeting and
taxing  procedures and practices within a financially distressed city, to
provide powers to a financial advisory authority established for a
financially distressed city, and to impose restrictions upon a financially
distressed city in order to assist that city in assuring its financial
integrity while leaving municipal services policies to the city, consistent
with the requirements for satisfying the public policy and purposes herein set
forth.
(c) It also is the purpose of this Division to authorize a city which
has been certified and designated as a financially distressed city under
the procedure set forth in Section 8-12-4, and which has by ordinance
requested that a financial advisory authority be appointed for the city and
that the city receive assistance as provided in this Division, and which
has filed certified copies of that ordinance in the manner provided by
Section 8-12-4, to enter into such agreements as are necessary to receive
assistance as provided in this Division and in applicable provisions of the
Illinois Finance Authority Act.
(Source: P.A. 93-205, eff. 1-1-04.)
(65 ILCS 5/8-12-3) (from Ch. 24, par. 8-12-3)
Sec. 8-12-3. 
		As used in this Division:
(1) "Authority" means the "(Name of Financially Distressed City) Financial
Advisory Authority".
(2) "Financially distressed city" means any municipality which is a home
rule unit and which (i) is certified by the Department of Revenue as being
in the highest 5% of all home rule municipalities in terms of the aggregate
of the rate per cent of all taxes levied pursuant to statute or ordinance
upon all taxable property of the municipality and as being in the lowest 5%
of all home rule municipalities in terms of per capita tax yield, and (ii)
is designated by joint resolution of the General Assembly as a financially
distressed city.
(3) "Home rule municipality" means a municipality which is a home
rule unit as provided in Section 6 of Article VII of the Illinois
Constitution.
(4) "Budget" means an annual appropriation ordinance or annual budget
 as described in Division 2 of Article 8, as from time to time in effect in
the financially distressed city.
(5) "Chairperson" means the chairperson of the Authority appointed
pursuant to Section 8-12-7.
(6) "Financial Plan" means the financially distressed city's financial plan
as developed pursuant to Section 8-12-15, as from time to time in effect.
(7) "Fiscal year" means the fiscal year of the financially distressed city.
(8) "Obligations" means bonds, notes or other evidence of indebtedness
issued by the Illinois Finance Authority in
connection with
the provision of financial aid to a financially distressed city pursuant to
this Division and applicable provisions of the Illinois
Finance Authority Act.
(Source: P.A. 93-205, eff. 1-1-04.)
(65 ILCS 5/8-12-4) (from Ch. 24, par. 8-12-4)
Sec. 8-12-4. 
		
		In order to receive assistance as provided in this
Division, a home rule municipality shall first, by ordinance passed by its
corporate authorities, request (i) that the Department of Revenue certify
that it is in the highest 5% of all home rule municipalities in terms of
the aggregate of the rate per cent of all taxes levied pursuant to statute
or ordinance upon all taxable property of the municipality and in the
lowest 5% of all home rule municipalities in terms of
per capita tax yield, and (ii) that the General Assembly by joint
resolution designate it as a financially distressed city. A home rule
municipality which is so certified and designated as a financially
distressed city and which desires to receive assistance as provided in this
Division shall, by ordinance passed by its corporate authorities, request
that a financial advisory authority be appointed for the city and that the
city receive assistance as provided in this Division, and shall file a
certified copy of that ordinance with the Governor, with the Clerk of the
House of Representatives and with the Secretary of the Senate. Upon the
filing of the certified copies of that ordinance as required by this
Section this Division and all of its provisions shall then and thereafter
be applicable to the financially distressed city, shall govern and control
its financial accounting, budgeting and taxing procedures and practices,
and, subject to the limitations of subsection (a) of Section 8-12-22, shall
remain in full force and effect with respect thereto until such
time as the financial advisory authority established under Section 8-12-5
is abolished as provided in subsection (c) of Section 8-12-22.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-5) (from Ch. 24, par. 8-12-5)
Sec. 8-12-5. 
		
		For each financially distressed city to which this
Division is applicable as provided in Section 8-12-4, there is established
a body both corporate and politic to be known as the "(Name of Financially
Distressed City) Financial Advisory Authority" which, in such name, shall
exercise all authority vested in such Authority by this Division.  The
Authority shall constitute an agency of State government, and as such may
receive and expend amounts appropriated by the General Assembly to the
Authority to enable it to exercise and perform its powers and
responsibilities under this Division.  The financially distressed city
shall not be liable for any costs or expenses incurred by the Authority in
the conduct of its powers and responsibilities under this Division.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-6) (from Ch. 24, par. 8-12-6)
Sec. 8-12-6. 
		Purposes and powers.
(a) The purposes of the Authority shall be to provide a secure financial
basis for and to furnish assistance to a financially distressed city to which
this Division is applicable as provided in Section 8-12-4, and to request the
Illinois Finance Authority to issue its Obligations
on behalf of
and thereby provide financial aid to the city in accordance with applicable
provisions of the Illinois Finance Authority Act, so
that the city
can provide basic municipal services within its jurisdictional limits, while
permitting the distressed city to meet its obligations to its creditors and the
holders of its notes and bonds.
(b) Except as expressly limited by this Division, the Authority
shall have all powers necessary to meet its responsibilities and to carry
out its purposes and the purposes of this Division, including, but not
limited to, the following powers:
(1) To provide for its organization and internal     management, and to make rules and regulations governing the use of its property and facilities.
(2) To make and execute contracts, leases, subleases     and all other instruments or agreements necessary or convenient for the exercise of the powers and functions granted by this Division.
(3) To approve all loans, grants, or other financial     aid from any State agency.
(4) To appoint officers, agents, and employees of the     Authority, define their duties and qualifications and fix their compensation and employee benefits.
(5) To engage the services of consultants for     rendering professional and technical assistance and advice on matters within the Authority's power.
(6) To pay the expenses of its operations.
(7) To determine, in its discretion but consistent     with the requirements of this Division, the terms and conditions of any loans it may make to the financially distressed city.
(c) Any loan repayments received by the Authority from the distressed city
may be deposited by the Authority into a revolving fund under the control of
the Authority.  Money in the revolving fund may be used by the Authority to
support activities leading to a restructuring of the distressed city's debt and
may be pledged by the Authority as security for any new debt incurred by the
distressed city with the approval of the Authority.
(d) From any funds appropriated to the Authority for the purpose of making
a loan to a distressed city, the Authority may expend not more than
$250,000 for the expenses of its operations in the fiscal year in which the
appropriation is made.
(Source: P.A. 93-205, eff. 1-1-04.)
(65 ILCS 5/8-12-7) (from Ch. 24, par. 8-12-7)
Sec. 8-12-7. 
		
		The governing body of the Authority shall be a board
consisting of 5 Directors.  Directors shall be appointed by the Governor,
with the advice and consent of the Senate.  At least 2 Directors must be
residents of the financially distressed city.  The Governor shall select
one of the Directors to serve as Chairperson during the term of his or her appointment.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-8) (from Ch. 24, par. 8-12-8)
Sec. 8-12-8. 
		
		The initial Directors shall be appointed, as provided in
Section 8-12-7, within 30 days after this Division first becomes applicable
to the financially distressed city as provided in Section 8-12-4. Of the
initial Directors so appointed, 3 shall be appointed to serve for terms
expiring 3 years from the date of their appointment, and 2 shall be
appointed to serve for terms expiring 2 years from the date of their
appointment. Thereafter each Director shall be appointed to hold office for
a term of 3 years and until his or her successor has been appointed as
provided in Section 8-12-7. Directors shall be eligible for reappointment.
Any vacancy which shall arise shall be filled by appointment by the
Governor, with the advice and consent of the Senate, for the unexpired term
and until his or her successor has been appointed as provided in Section
8-12-7. A vacancy shall occur upon resignation, death, conviction of a
felony or removal from office of a Director. A Director may be removed for
incompetency, malfeasance or neglect of duty at the instance of the
Governor. If the Senate is not in session or is
in recess when appointments subject to its confirmation are made, the
Governor shall make temporary appointments which shall be subject to
subsequent Senate approval.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-9) (from Ch. 24, par. 8-12-9)
Sec. 8-12-9. 
		
		The Chairperson shall preside at meetings of the
Directors.  The Directors may establish such offices and appoint such
officers for the Authority as they may deem appropriate.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-10) (from Ch. 24, par. 8-12-10)
Sec. 8-12-10. 
		
		Any State agency or unit of local government, within its
respective function, may render such services to the Authority as the
Authority may request.  Upon the Authority's request any such agency
or unit of local government may transfer to the Authority such officers and
employees as the Authority and any such agency or unit of local government
deem necessary to carry out the Authority's functions and duties.  Officers
and employees so transferred shall not lose or forfeit their employment status or rights.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-11) (from Ch. 24, par. 8-12-11)
Sec. 8-12-11. 
		
		The Directors shall serve without compensation, but each
Director shall be entitled to reimbursement for actual and necessary
expenses incurred in the performance of official duties as a Director.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-12) (from Ch. 24, par. 8-12-12)
Sec. 8-12-12. 
		
		(a) The Governor shall call the first
meeting of the Authority.  Thereafter, the Directors shall prescribe
the times and places for their meetings and the manner in which regular
and special meetings may be called.  The Directors shall comply in all
respects with the Open Meetings Act.  The Authority shall be a public body to
which The Freedom of Information Act applies.
(b) A majority of the  Directors holding office shall constitute a
quorum for the conduct of business.  The affirmative votes of at least
3 Directors shall be necessary for adopting any rule or regulation,
and for any other action required by this Division to be taken by
resolution, directive or ordinance.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-13) (from Ch. 24, par. 8-12-13)
Sec. 8-12-13. 
		
		In carrying out the purposes of this Division, and pursuant
to Sections 8-12-14 through 8-12-24, as hereinafter provided, the Authority
shall have the power to approve or to reject the Financial Plans, Budgets
and contracts which are inconsistent with the Financial Plan and Budget of
the financially distressed city; provided, however, that the Authority
shall have no authority to impair any existing contract or obligation of
the city; and provided further, that with respect to any multi-year
employment contract or collective bargaining agreement authorized or
entered into by the city in accordance with applicable statutes and
ordinances, the Authority's power to approve or reject the same shall be
limited to the first year of such contract or agreement as provided in
Section 8-12-17.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-14) (from Ch. 24, par. 8-12-14)
Sec. 8-12-14. 
		
		The Budget of the financially distressed city for its
first fiscal year commencing after this Division first becomes applicable
to the financially distressed city as provided in Section 8-12-4, and for
each subsequent fiscal year shall be balanced in accordance with such
accounting system and procedures as may be prescribed by the Authority and
the requirements of State law, with substantial progress toward balancing
the Budget to be achieved during the remaining portion of what is the
financially distressed city's current fiscal year at the time this Division
first becomes applicable to the city as provided in Section 8-12-4.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-15) (from Ch. 24, par. 8-12-15)
Sec. 8-12-15. 
		
		The financially distressed city shall develop, adopt and
submit to the Authority, within 45 days after this Division first becomes
applicable to the city as provided in Section 8-12-4, for approval by the
Authority, an initial Financial Plan with respect to the remaining portion
of what is the city's current fiscal year at the time this Division first
becomes applicable to the city as provided in Section 8-12-4 and for the 2
succeeding fiscal years. The city shall develop and adopt subsequent
Financial Plans annually and during interim periods as directed by the
Authority.  Interim updates shall be directed only when the Authority in
its discretion determines that a change in circumstances warrants such an
update.  The Authority shall require that each Financial Plan cover a
period of at least 3 fiscal years. After adoption by the city, the city
shall submit each plan to the Authority for its approval not later than 60
days prior to the commencement of the first fiscal year to which the
Financial Plan relates.  The Authority shall approve or reject the
Financial Plan not later than 30 days prior to the commencement of the
fiscal year.  No Financial Plan shall have force or effect without approval
of the Authority.  Each Financial Plan shall be developed, submitted,
approved and monitored in accordance with the following procedures:
(1) The financially distressed city shall determine and submit to the
Authority, at a time and in a manner prescribed by the Authority, estimates
of revenues available to the city during the period for which the Financial
Plan is to be in effect.  The Authority shall approve, reject or amend the
revenue estimates.  In the event the city fails, for any reason, to submit
to the Authority estimates of revenue as required by this paragraph, the
Authority may prepare such estimates.  The Financial
Plan submitted by the city shall be based upon revenue estimates
approved or prepared by the Authority.  As soon as practicable following
the establishment of the Authority, the corporate authorities of the city
shall, at the request of the Chairperson of the Authority, make available
to such Chairperson copies of the audited financial statements and of
the books and records of account of the city for the preceding 3 fiscal
years of the city.
(2) Each Financial Plan for each fiscal year or part thereof to which
it relates, shall contain: (i) a description of revenues and
expenditures, provision for debt service, cash resources and uses, and
capital improvements, each in such manner and detail as the Authority
shall prescribe; (ii) a description of the means by which the Budget
will be brought into balance in accordance with Section 8-12-14;
and (iii) such other financial matters that the  Authority, in its
discretion, requires.  The Authority may prescribe any reasonable
time, standards, procedures or forms for preparation and submission of
the Financial Plan.
(3) The Authority shall approve the initial and each subsequent
Financial Plan if, in its judgement, the plan is complete, is
reasonably capable of being achieved, and meets the requirement set
forth in Section 8-12-14.  Otherwise, the Authority shall
reject the Financial Plan.  The Authority's review of the Financial Plan
shall be in accordance with generally accepted accounting principles and
standards.  No Financial Plan submitted by the financially distressed city
shall be arbitrarily or capriciously rejected by the Authority.  Any
rejection by the Authority of any Financial Plan submitted by the city
shall be in writing and shall state the reasons for the rejection.  In the
event of rejection, the Authority may prescribe a procedure and standards
for revision of the Financial Plan by the financially distressed city.
(4) The financially distressed city shall report to the Authority, at
such times and in such manner as the Authority may direct, concerning the
city's compliance with each Financial Plan.  The Authority may review the
city's operation, obtain budgetary data and financial statements, require
the city to produce reports, and have access to any other information in
the possession of the city that it deems relevant to the Financial Plan and
the city's compliance with that Plan.  The Authority may issue
recommendations or directives within its powers to the city to assure
compliance with the Financial Plan. The city shall produce such budgetary
data, financial statements, reports and other information and comply with
such directives.
(5) After approval of each Financial Plan, the financially distressed
city shall regularly reexamine the revenue and expenditure estimates on
which it was based and revise them as necessary.  The city shall promptly
notify the Authority of any material change in the revenue or expenditure
estimates in the Financial Plan.  The city may submit to the
Authority, or the Authority may require the city to submit, modified
Financial Plans based upon revised revenue   or expenditure estimates
or for any other good reason.  The Authority shall approve or reject
each modified Financial Plan pursuant to paragraph (3) of this
Section.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-16) (from Ch. 24, par. 8-12-16)
Sec. 8-12-16. 
		
		The financially distressed city shall develop, adopt
and submit to the Authority, within 30 days after this Division first
becomes applicable to the city as provided in Section 8-12-4, a revised
Budget for the remaining portion of what is the city's current fiscal year
at the time this Division first becomes applicable to the city as provided
in Section 8-12-4 and, thereafter, an annual Budget for each subsequent
fiscal year.  After adoption by the city, the city shall submit each Budget
to the Authority for its approval not later than 60 days prior to the
commencement of the  fiscal year to which the Budget relates.  The
Authority shall approve or reject the Budget not later than 30 days prior
to the commencement of the fiscal year.  No Budget shall have force or
effect without approval of the  Authority.  Each Budget shall be developed,
submitted, approved and monitored in accordance with the following procedures:
(1) Each Budget submitted by the financially distressed city shall be
based upon revenue estimates approved or prepared by the Authority, as
provided in paragraph (1) of Section 8-12-15.
(2) Each Budget shall contain such information and detail as may
be prescribed by the Authority.  Any deficit for a fiscal year or any
portion of a fiscal year to which any Budget relates shall be included as a
current expense item for the succeeding fiscal year.
(3) The Authority shall approve each Budget if, in its judgment,
the Budget is complete with respect to providing a detailed accounting of
revenues and expenditures, is reasonably capable of being achieved, will
meet the requirement set forth in Section 8-12-14, and
will be consistent with the Financial Plan in effect.  Otherwise, the
Authority shall reject the Budget.  The Authority's review of the Budget
shall be in accordance with generally accepted accounting principles and
standards.  No Budget submitted by the financially distressed city shall be
arbitrarily or capriciously rejected by the Authority.  Any rejection by the
Authority of any Budget submitted by the city shall be in writing and shall
state the reasons for the rejection.  In the event of rejection, the
Authority may prescribe a procedure and standards for revision of the
Budget by the city.
(4) The financially distressed city shall report to the Authority at
such times and such manner as the Authority may direct, concerning the
city's compliance with each Budget.  The Authority may review the city's
operations, obtain budgetary data and financial statements, require the
city to produce reports, and have access to any other information in the
possession of the city that the Authority deems relevant.  The Authority
may issue recommendations or directives within its powers to the city to
assure compliance with the Budget.  The city shall produce such budgetary
data, financial statements, reports and other information and comply with
such directives.
(5) After approval of each Budget, the financially distressed city shall
promptly notify the Authority of any material change in the revenue or
expenditure estimates in the Budget.  The city may submit to the Authority,
or the Authority may require the city to submit, a supplemental Budget
based upon revised revenue or expenditure estimates or for any other good
reason.  The Authority shall approve or reject each supplemental Budget
pursuant to paragraph (3) of this Section.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-17) (from Ch. 24, par. 8-12-17)
Sec. 8-12-17. 
		
		(a) No contract or other obligation shall be entered into
by the financially distressed city unless it is consistent with the
Financial Plan and Budget in effect.  No multi-year employment contract or
collective bargaining agreement authorized or entered into by the city in
accordance with applicable statutes and ordinances shall, with respect to
any terms and provisions thereof which are operative after expiration of
the first year of any such contract or agreement, be deemed inconsistent
with a Financial Plan and Budget at any time in effect; provided, however,
that any terms and provisions of a contract or agreement which would
increase expenditures for salaries, benefits or other forms of compensation
after the expiration of the first year of such contract or agreement shall
be contingent upon the attainment of sufficient available revenues,
considering all necessary expenditures, to support such increases.
(b) The Authority may adopt, and from time to time amend,
regulations identifying categories and types of contracts and other
obligations that shall be subject to approval by the  Authority and
the procedure for submitting contracts for approval.  Each contract or
other  obligation that is entered into by the financially distressed city
and that requires approval by the Authority shall contain a provision
stating (i) that it shall not become legally binding on the city unless and
until it has received the approval of the Authority, and (ii) that the
Authority shall approve the contract if, in the Authority's judgment, the
information required to be submitted is complete with respect to the
contract or other obligation being an authorized expenditure within the
Financial Plan and Budget and the contract or other obligation is
consistent with the Financial Plan and Budget in effect. No contract or
other obligation that requires the approval of the Authority shall be
legally binding on the city unless and until it has received the approval
of the Authority. Subject to the foregoing, the prior approval of the
Authority is not required in order for the city to enter into a contract.
(c) The Authority  shall approve the contract or obligation if, in
its judgement, the information required to be submitted is complete
and the contract or other obligation is consistent with the Budget and
Financial Plan in effect.  Otherwise, the Authority shall reject the
contract or other obligation; provided, however, that any multi-year
employment contract or collective bargaining agreement authorized or
entered into by the city in accordance with applicable statutes and
ordinances shall be approved by the Authority if, in its judgement, the
terms and provisions operative during the first year of such contract
or agreement are consistent with the Budget and Financial Plan in
effect for that period, subject to the limitation that any terms and
provisions of any such contract or agreement which would increase
expenditures for salaries, benefits or other forms of compensation after
the expiration of the first year of the contract or agreement shall be
contingent upon the attainment of sufficient available revenues,
considering all necessary expenditures, to support such increases.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-18) (from Ch. 24, par. 8-12-18)
Sec. 8-12-18. 
		
		The financially distressed city shall meet its debt
service obligations as they become due.  No other expenditure shall be made
by the city unless it is consistent with the Financial Plan and Budget in
effect.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-19) (from Ch. 24, par. 8-12-19)
Sec. 8-12-19. 
		
		The Authority shall appoint and shall have the authority
to remove a financial management officer. The financial management officer
shall have the responsibility for advising on the preparation of the Budget
and Financial Plan of the financially distressed city and for monitoring
expenditures of the city.  The financial management officer shall be the
authorized signatory for all expenditures made from the proceeds of any
State loans provided for the benefit of the city pursuant to this Division
or any other law of this State, and for all expenditures made from
financial aid provided for the benefit of the city from Obligations issued
by the Illinois Finance Authority for such purposes
in
accordance with applicable provisions of the Illinois
Finance
Authority Act. The financial management officer shall be an employee of and
shall report to the Authority, may be granted authority by the Authority to
hire a specific number of employees to assist in meeting responsibilities,
and shall have access to all financial data and records of the city which
he or she deems necessary for the proper and efficient exercise of such
responsibilities.  Neither the Authority or the financial management
officer shall have any authority to hire, fire or appoint city employees or
to manage the day-to-day operations of the city.
(Source: P.A. 93-205, eff. 1-1-04.)
(65 ILCS 5/8-12-20) (from Ch. 24, par. 8-12-20)
Sec. 8-12-20. 
		
		Upon direction of the Authority, the financially
distressed city shall reorganize its financial accounts and its management
and budgetary systems in whatever manner the Authority deems appropriate to
achieve greater financial responsibility and control.  The Authority shall
not have the power to affect the taxing authority or to consolidate or
reduce the restricted debt service funds of the city.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-21) (from Ch. 24, par. 8-12-21)
Sec. 8-12-21. 
		
		The Authority in its sole discretion may intercept any
payments that the city from time to time is entitled to receive from any
funds then or thereafter held by the State Treasurer to the credit of the
city or otherwise in the custody of the State Treasurer to the credit of
the city, whether in or outside of the State Treasury, upon the occurrence
of any of the following:
(1) The financially distressed city's initial     Financial Plan and revised Budget required to be submitted to the Authority with respect to the remaining portion of what is the city's current fiscal year at the time this Division first becomes applicable to the city as provided in Section 8-12-4 are not approved by the Authority within 60 days of their submission, and the Authority has theretofore given written warning notice to the corporate authorities of the city, on the 45th day after such initial Financial Plan and revised Budget were submitted, that the same have not yet been approved by the Authority; or
(2) Any Financial Plan or Budget for any subsequent     fiscal year is not approved by the Authority by the commencement of the fiscal year to which such Financial Plan or Budget relates, and the Authority has theretofore given written warning notice to the corporate authorities of the city, on the 15th day prior to the commencement of that fiscal year, that the Financial Plan or Budget for such fiscal year has not yet been approved by the Authority; or
(3) The financially distressed city materially     violates the provisions of this Division, and the Authority -- at least 15 days prior to initiating any action to intercept any payments pursuant to this Section -- has given the corporate authorities of the city written notice of the material violation and of the Authority's intention to intercept payments pursuant to this Section upon the expiration of that 15 day notice period unless the city satisfies the Authority within that 15 day period that the material violation cited by the Authority has been corrected; provided that the Authority shall not be required to give any notice to the city or its corporate authorities prior to initiating action to intercept payments pursuant to this Section if such payments are to be intercepted because of the city's failure to pay when due all amounts then due and owing and required to be paid by the city on Obligations issued by the Illinois Finance Authority in connection with the provision of financial aid to the city pursuant to this Division and applicable provisions of the Illinois Finance Authority Act.
The intercept shall be made pursuant to written notice given by the
Authority to the State Comptroller and State Treasurer, setting forth the
amount of the intercept, which may be an aggregate amount not exceeding the
sum of the full amount of any outstanding State loans provided for the
benefit of the city pursuant to this Division or any other law of this
State, plus the full amount of all outstanding Obligations issued by the
Illinois Finance Authority on the financially
distressed city's
behalf in accordance with applicable provisions of the Illinois
Finance Authority Act.  The State Comptroller and State Treasurer shall pay
to the Authority, from such funds as from time to time are legally
available therefor, the aggregate amount of the intercept, unless the
Authority sooner notifies the State Comptroller and State Treasurer in
writing that no further payments that the city is entitled to receive shall
be intercepted under the provisions of this Section.
(Source: P.A. 93-205, eff. 1-1-04.)
(65 ILCS 5/8-12-22) (from Ch. 24, par. 8-12-22)
Sec. 8-12-22. 
		
		(a) After the Authority has certified to the Governor
that the financially distressed city has completed 10 successive years of
balanced budgets:
(1) The powers and responsibilities granted or     imposed upon the Authority and the financially distressed city under Section 8-12-13 and Sections 8-12-15 through 8-12-21 shall not be exercised, except as otherwise provided under subsection (b) of this Section.
(2) The provisions of Section 8-12-14 shall continue     in full force and effect.  The financially distressed city shall file with the Authority and with the Illinois Finance Authority, not later than 15 days prior to the commencement of the first fiscal year with respect to which the powers and responsibilities granted or imposed under Section 8-12-13 and Sections 8-12-15 through 8-12-21 are not to be exercised, and not later than 15 days prior to the commencement of each fiscal year thereafter, a balanced Budget as adopted by the financially distressed city for such fiscal year.  In addition, for each fiscal year with respect to which the powers and responsibilities granted or imposed under Section 8-12-13 and Sections 8-12-15 through 8-12-21 are not to be exercised, the financially distressed city shall file with the Authority and with the Illinois Finance Authority a certified copy of the same audit report and supplemental report which are required to be made and filed for such fiscal year by the city under the Illinois Municipal Auditing Law, the filing with the Authority and the Illinois Finance Authority to be made within the time provided for the filing of such audit report and supplemental report with the State Comptroller under Section 8-8-4.
(b) The Authority and the Illinois Finance
Authority
shall review each Budget, audit report and supplemental report filed with
them as provided in paragraph (2) of subsection (a).  In the event the
financially distressed city fails to file any Budget or certified copy of
an audit report or supplemental report as provided in paragraph (2) of
subsection (a), or in the event the Illinois Finance
Authority,
after consultation with the Authority, determines that the Budget adopted
by the financially distressed city and filed as provided in paragraph (2)
of subsection (a) is not balanced as required under Section 8-12-14, the
Illinois Finance Authority shall certify such failure
to file, or
failure to adopt a Budget which is balanced as required, to the Governor;
and concurrent with that certification, the Authority established under
Section 8-12-5 and the financially distressed city shall resume the
exercise and performance of their respective powers and responsibilities
pursuant to each Section of this Division.
(c) When the Illinois Finance Authority determines
that
all of its Obligations have been fully paid and discharged or otherwise
provided for, it shall certify that fact to the Governor; and the Authority
established under Section 8-12-5 shall be abolished 30 days after the date
of that certification.  Upon abolition of the Authority as provided in this
subsection, this Division shall have no further force or effect upon the
financially distressed city.
(Source: P.A. 93-205, eff. 1-1-04.)
(65 ILCS 5/8-12-23) (from Ch. 24, par. 8-12-23)
Sec. 8-12-23. 
		
		A financially distressed city to which this Division
applies shall remain subject to all other applicable provisions of this
Act, except as limited by this Division; provided, however, that in case of
a conflict between the provisions of this Division and any other provision
of this Act, the provisions of this Division shall control.
(Source: P.A. 86-1211.)
(65 ILCS 5/8-12-24) (from Ch. 24, par. 8-12-24)
Sec. 8-12-24. 
		
		A home rule unit which is a financially distressed city
to which this Division is applicable as provided in Section 8-12-4 may not
employ financial or fiscal accounting or budgetary procedures or systems,
nor place into effect any Financial Plan or Budget, nor enter into any
contract or make any expenditure, nor otherwise conduct its financial and
fiscal affairs or take other action in a manner inconsistent with the
provisions of this Division, until such time as the powers and
responsibilities of the Authority are terminated as provided in Section
8-12-22.  This Section is a limitation under subsection (i) of Section 6 of
Article VII of the Illinois Constitution on the concurrent exercise by home
rule units which are financially distressed cities to which this Division
is applicable as provided in Section 8-12-4 of powers and functions
exercised by the State.
(Source: P.A. 86-1211.)
(65 ILCS 5/Art. 8 Div. 13 heading)
DIVISION 13.  ASSIGNMENT OF RECEIPTS
(Source: P.A. 100-23, eff. 7-6-17.)
(65 ILCS 5/8-13-5)
Sec. 8-13-5. Definitions. As used in this Article:
"Assignment agreement" means an agreement between a transferring unit and an issuing entity for the conveyance of all or part of any revenues or taxes received by the transferring unit from a State entity.
"Conveyance" means an assignment, sale, transfer, or other conveyance.
"Deposit account" means a designated escrow account established by an issuing entity at a trust company or bank having trust powers for the deposit of transferred receipts under an assignment agreement.
"Issuing entity" means (i) a corporation, trust or other entity that has been established for the limited purpose of issuing obligations for the benefit of a transferring unit, or (ii) a bank or trust company in its capacity as trustee for obligations issued by such bank or trust company for the benefit of a transferring unit.
"State entity" means the State Comptroller, the State Treasurer, or the Illinois Department of Revenue.
"Transferred receipts" means all or part of any revenues or taxes received from a State entity that have been conveyed by a transferring unit under an assignment agreement.
"Transferring unit" means a home rule municipality located in the State.
(Source: P.A. 100-23, eff. 7-6-17.)
(65 ILCS 5/8-13-10)
Sec. 8-13-10. Assignment of receipts.
(a) Any transferring unit which receives revenues or taxes from a State entity may (to the extent not prohibited by any applicable statute, regulation, rule, or agreement governing the use of such revenues or taxes) authorize, by ordinance, the conveyance of all or any portion of such revenues or taxes to an issuing entity. Any conveyance of transferred receipts shall: (i) be made pursuant to an assignment agreement in exchange for the net proceeds of obligations issued by the issuing entity for the benefit of the transferring unit and shall, for all purposes, constitute an absolute conveyance of all right, title, and interest therein; (ii) not be deemed a pledge or other security interest for any borrowing by the transferring unit; (iii) be valid, binding, and enforceable in accordance with the terms thereof and of any related instrument, agreement, or other arrangement, including any pledge, grant of security interest, or other encumbrance made by the issuing entity to secure any obligations issued by the issuing entity for the benefit of the transferring unit; and (iv) not be subject to disavowal, disaffirmance, cancellation, or avoidance by reason of insolvency of any party, lack of consideration, or any other fact, occurrence, or State law or rule. On and after the effective date of the conveyance of the transferred receipts, the transferring unit shall have no right, title or interest in or to the transferred receipts conveyed and the transferred receipts so conveyed shall be the property of the issuing entity to the extent necessary to pay the obligations issued by the issuing entity for the benefit of the transferring unit, and shall be received, held, and disbursed by the issuing entity in a trust fund outside the treasury of the transferring unit. An assignment agreement may provide for the periodic reconveyance to the transferring unit of amounts of transferred receipts remaining after the payment of the obligations issued by the issuing entity for the benefit of the transferring unit.
(b) In connection with any conveyance of transferred receipts, the transferring unit is authorized to direct the applicable State entity to deposit or cause to be deposited any amount of such transferred receipts into a deposit account in order to secure the obligations issued by the issuing entity for the benefit of the transferring unit. Where the transferring unit states that such direction is irrevocable, the direction shall be treated by the applicable State entity as irrevocable with respect to the transferred receipts described in such direction. Each State entity shall comply with the terms of any such direction received from a transferring unit and shall execute and deliver such acknowledgments and agreements, including escrow and similar agreements, as the transferring unit may require to effectuate the deposit of transferred receipts in accordance with the direction of the transferring unit.
(c) Not later than the date of issuance by an issuing entity of any obligations secured by collections of transferred receipts, a certified copy of the ordinance authorizing the conveyance of the right to receive the transferred receipts, together with executed copies of the applicable assignment agreement and the agreement providing for the establishment of the deposit account, shall be filed with the State entity having custody of the transferred receipts.
(Source: P.A. 100-23, eff. 7-6-17.)
(65 ILCS 5/8-13-11)
Sec. 8-13-11. Liens for obligations.
(a)  As used in this Section, "statutory lien" has the meaning given to that term under 11 U.S.C. 101(53) of the federal Bankruptcy Code.
(b)  Obligations issued by an issuing entity shall be secured by a statutory lien on the transferred receipts received, or entitled to be received, by the issuing entity that are designated as pledged for such obligations.  The statutory lien shall automatically attach from the time the obligations are issued without further action or authorization by the issuing entity or any other entity, person, governmental authority, or officer.  The statutory lien shall be valid and binding from the time the obligations are executed and delivered without any physical delivery thereof or further act required, and shall be a first priority lien unless the obligations, or documents authorizing the obligations or providing a source of payment or security for those obligations, shall otherwise provide.
The transferred receipts received or entitled to be received shall be immediately subject to the statutory lien from the time the obligations are issued, and the statutory lien shall automatically attach to the transferred receipts (whether received or entitled to be received by the issuing entity) and be effective, binding, and enforceable against the issuing entity, the transferring unit, the State entity, the State of Illinois, and their agents, successors, and transferees, and creditors, and all others asserting rights therein or having claims of any kind in tort, contract, or otherwise, irrespective of whether those parties have notice of the lien and without the need for any physical delivery, recordation, filing, or further act.
The statutory lien imposed by this Section is automatically released and discharged with respect to amounts of transferred receipts reconveyed to the transferring unit pursuant to Section 8-13-10 of this Code, effective upon such reconveyance.
(c)  The statutory lien provided in this Section is separate from and shall not affect any special revenues lien or other protection afforded to special revenue obligations under the federal Bankruptcy Code.
(Source: P.A. 100-23, eff. 7-6-17.)
(65 ILCS 5/8-13-15)
Sec. 8-13-15. Pledges and agreements of the State. The State of Illinois pledges to and agrees with each transferring unit and issuing entity that the State will not limit or alter the rights and powers vested in the State entities by this Article with respect to the disposition of transferred receipts so as to impair the terms of any contract, including any assignment agreement, made by the transferring unit with the issuing entity or any contract executed by the issuing entity in connection with the issuance of obligations by the issuing entity for the benefit of the transferring unit until all requirements with respect to the deposit by such State entity of transferred receipts for the benefit of such issuing entity have been fully met and discharged. In addition, the State pledges to and agrees with each transferring unit and each issuing entity that the State will not limit or alter the basis on which the transferring unit's share or percentage of transferred receipts is derived, or the use of such funds, so as to impair the terms of any such contract. Each transferring unit and issuing entity is authorized to include these pledges and agreements of the State in any contract executed and delivered as described in this Article. In no way shall the pledge and agreements of the State be interpreted to construe the State as a guarantor of any debt or obligation subject to an assignment agreement under this Division.
(Source: P.A. 100-23, eff. 7-6-17.)
(65 ILCS 5/8-13-20)
Sec. 8-13-20. Home rule. A home rule unit may not enter into assignment agreements in a manner inconsistent with the provisions of this Article. This Section is a limitation under subsection (i) of Section 6 of
Article VII of the Illinois Constitution on the concurrent exercise by home rule units of
powers and functions exercised by the State.
(Source: P.A. 100-23, eff. 7-6-17.)