Illinois Administrative Code › Title 86 - REVENUE › Part 693 - NON-HOME RULE MUNICIPAL RETAILERS' OCCUPATION TAX › Section 693.101 - Nature of the Non-Home Rule Municipal Retailers' Occupation Tax

Current through Register Vol. 48, No. 28, July 12, 2024
a) Authority to
			 Impose Tax
On and after January 1, 2002, the corporate authorities of a
				non-home rule municipality are authorized by the Non-Home Rule Municipal
				Retailers' Occupation Tax Act [65 ILCS 5/8-11 -1.3] to impose the Non-Home Rule
				Municipal Retailers' Occupation Tax on all persons engaged in the business of
				selling tangible personal property, other than an item of tangible personal
				property that is titled and registered by an agency of this State's government,
				at retail in the municipality on the gross receipts from sales made in the
				course of the business within the municipality, if a proposition for the tax
				has been submitted to the electors of that municipality and approved by a
				majority of those voting on the question. If imposed, the tax shall be imposed
				at a rate of not more than, through December 31, 2005, 1/2%, and, beginning on
				January 1, 2006, 1%, for expenditure on public infrastructure or property tax
				relief or both as defined in Section 8-11-1.2 of the Illinois Municipal Code.
				The tax may not be imposed on the sale of food for human consumption that is to
				be consumed off the premises where it is sold (other than alcoholic beverages,
				soft drinks and food that has been prepared for immediate consumption) and
				prescription and non-prescription medicines, drugs, medical appliances and
				insulin, urine testing materials, syringes and needles used by diabetics. The
				tax imposed by the corporate authorities under the Non-Home Rule Municipal
				Retailers' Occupation Tax Act and this Part, and all civil penalties that may
				be assessed as an incident of that Act or this Part, may be imposed only in
				1/4% increments and shall be collected and enforced by the Illinois Department
				of Revenue (Department).
b)
			 Passing on the Tax
The legal incidence of the Non-Home Rule Municipal Retailers'
				Occupation Tax is on the seller. Nevertheless, the General Assembly has
				authorized persons subject to any tax imposed pursuant to the authority granted
				in the Non-Home Rule Municipal Retailers' Occupation Tax Act to reimburse
				themselves for their Non-Home Rule Municipal Retailers' Occupation Tax
				liability by separately stating the tax as an additional charge, which charge
				may be stated in combination, in a single amount, with State tax that sellers
				are required to collect under the Use Tax Act [35 ILCS 105 ], pursuant to the
				bracket schedules the Department has prescribed (see 86 Ill. Adm. Code
				150.Table A).
c) Exclusion
			 from "Gross Receipts"
Any amount added to the selling price of tangible personal
				property by the seller because of a Non-Home Rule Municipal Retailers'
				Occupation Tax, or because of the Illinois Retailers' Occupation Tax [35 ILCS
				120 ], the Illinois Use Tax [35 ILCS 105], the Metro East Mass Transit District
				Retailers' Occupation Tax [70
				ILCS 3610/5.01 ], the Regional Transportation
				Authority Retailers' Occupation Tax [70 ILCS
				3615/4.03 ] or the County Water Commission Retailers'
				Occupation Tax [70 ILCS
				3720/4(b) ], and collected from the
				purchaser, shall not be regarded as a part of the seller's gross receipts that
				are subject to the Non-Home Rule Municipal Retailers' Occupation
				Tax.