a) Authority to Impose Tax
1) Pursuant to Section 8-11-1 of the Illinois
Municipal Code [65 ILCS 5], 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 ¼%
increments.
2)
This additional tax may not be imposed on tangible personal property
taxed at the 1% rate under the Retailers' Occupation Tax Act [35 ILCS
120]
. [65 ILCS 5/8-11-1] For guidance on the types of tangible
personal property taxed at the 1% rate, see 86 Ill. Adm. Code
130.310 and
130.311.
3)
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 [35 ILCS 120]. [65 ILCS 5/8-11-1]
"Aviation fuel" means jet fuel and aviation gasoline.
[
35 ILCS
120/3 ]
"Airport-related purposes" has the
meaning ascribed in Section 6z-20.2 of the State Finance Act [30 ILCS
105]
. 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.
4)
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 Department of Revenue. [65 ILCS
5/8-11-1]
b) Passing on
the Tax
The legal incidence of the Home Rule Municipal Retailers'
Occupation Tax is on the seller. Nevertheless, the General Assembly has
authorized persons subject to this tax to reimburse
themselves for their seller's tax liability 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 [35 ILCS 105], pursuant to such bracket schedules as the
Department has prescribed. [65 ILCS 5/8-11-1] (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 Home Rule Municipal Retailers' Occupation
Tax, the Retailers' Occupation Tax, the Use Tax, or any other local occupation
tax administered by the Department, and collected from the purchaser, shall not
be regarded as a part of the seller's gross receipts that are subject to such
Home Rule Municipal Retailers' Occupation Tax.
