SB1429sam005 95TH GENERAL ASSEMBLY

Sen. John J. Cullerton

Filed: 5/28/2007

09500SB1429sam005 LRB095 04029 BDD 36269 a

AMENDMENT TO SENATE BILL 1429

AMENDMENT NO. ______. Amend Senate Bill 1429 as follows:

on page 3, by replacing line 11 with the following: "Sections 6z-17, 6z-18, and 6z-20 as follows:

(30 ILCS 105/6z-17) (from Ch. 127, par. 142z-17)

Sec. 6z-17. Of the money paid into the State and Local Sales Tax Reform Fund: (i) subject to appropriation to the Department of Revenue, Municipalities having 1,000,000 or more inhabitants shall receive 20% and may expend such amount to fund and establish a program for developing and coordinating public and private resources targeted to meet the affordable housing needs of low-income and very low-income households within such municipality, (ii) 10% shall be transferred into the Regional Transportation Authority Occupation and Use Tax Replacement Fund, a special fund in the State treasury which is hereby created, (iii) subject to appropriation to the Department of Transportation, The Metro East Mass Transit District shall receive .6%, (iv) the following amounts, plus any cumulative deficiency in such transfers for prior months, shall be transferred monthly into the Build Illinois Fund and credited to the Build Illinois Bond Account therein:

From Fiscal Year 1994 through Fiscal Year 2025 the transfer shall total $3,150,000 monthly, plus any cumulative deficiency in such transfers for prior months, (v) Beginning February 1, 2008, subject to appropriation, 1/12th of $20,000,000 shall be deposited each month into the Municipal Reduced Local Portion Reimbursement Fund, a fund outside of the State Treasury with the State Treasurer listed as ex-officio custodian, that is attributable to the increased Illinois use tax collections as a result of the changes in Illinois use and occupation tax laws made to comply with the Streamlined Sales and Use Tax Agreement, and, beginning February 1, 2009, the amount deposited into the Municipal Reduced Local Portion Reimbursement Fund must be increased annually based on changes in the Consumer Price Index published by the Bureau of Labor Statistics of the United States Department of Labor, and (vi) (v) the remainder of the money paid into the State and Local Sales Tax Reform Fund shall be transferred into the Local Government Distributive Fund and, except for municipalities with 1,000,000 or more inhabitants which shall receive no portion of such remainder, shall be distributed, subject to appropriation, in the manner provided by Section 2 of "An Act in relation to State revenue sharing with local government entities", approved July 31, 1969, as now or hereafter amended. Municipalities with more than 50,000 inhabitants according to the 1980 U.S. Census and located within the Metro East Mass Transit District receiving funds pursuant to provision (v) of this paragraph may expend such amounts to fund and establish a program for developing and coordinating public and private resources targeted to meet the affordable housing needs of low-income and very low-income households within such municipality.

(Source: P.A. 91-51, eff. 6-30-99.)"; and

on page 236, line 21, after "2-10.3", by inserting ", 3.3"; and

on page 338, immediately below line 12, by inserting the following:

(35 ILCS 120/3.3 new)

Sec. 3.3. Streamlined Sales Tax reimbursements for certain lost revenues.

(a) For the purpose of this Section, a "reduced-local-portion municipality" means a municipality that meets at least one of the following criteria:

(1) the municipality had, within its municipal boundaries on January 1, 2007, at least one retail business that made, for the period January 1, 2002 through December 31, 2006, more than $150,000,000 of gross annual sales at retail of tangible personal property to Illinois purchasers from that location and more than 50% of those sales each year are delivered to purchasers in Illinois at an address that is outside of the municipality's boundaries;

(2) the municipality had at least one retail business within its municipal boundaries on January 1, 2007 that had generated, for the period January 1, 2002 through December 31, 2006, retailers' occupation tax revenues to that municipality each year that were greater than 50% of that municipality's receipt of retailers' occupation tax revenue for the preceding 12-month period and more than 50% of that retailers' sales are delivered to purchasers in Illinois at an address that is outside of that municipality; or

(3) a municipality that, on or before January 1, 2008, has applied to the Department for extraordinary hardship relief from the Municipal Reduced Local Portion Reimbursement Fund in the form and manner required by the Department. For the purpose of this subsection (a), "retail business" means a business that makes retail sales of tangible personal property on the premises, at least some of which is delivered to customers at that premises.

(b) For the purpose of this Section, "reduced-local-portion revenue" means an amount that is equal to: (i) any local portion of tax that would have been remitted to a municipality before the changes made to the sourcing of sales under subsection (c) of this Section; less (ii) the amount that is received after those changes; less (iii) 20% of the increase of all local occupation taxes that are attributable to the sale of food and drugs sold within the municipality after the changes to the sourcing of sales under subsection (c) of this Section, which were made in order for Illinois use and occupation tax laws to comply with the Streamlined Sales and Use Tax Agreement. With respect to a municipality that qualifies as a reduced-local-portion municipality under item (3) of subsection (a), "reduced-local-portion revenue" also includes the amount determined by the Department to provide hardship relief to the municipality.

(c) Beginning February 1, 2008, the Department shall determine which municipalities qualify as a reduced-local-portion municipality and are, therefore, subject to a reimbursement of reduced-local-portion revenue, as set forth under this Section. This determination must be based upon information received from the Retailers' Occupation Tax returns and other information provided by Illinois retailers and by application of the municipalities made to the Department.

(d) On or before the 25th day of each calendar month, the Department shall make the following reimbursement certifications to the State Comptroller:

(1) for each municipality described in item (1) of subsection (a), the Department shall certify an amount equal to 90% of the reduced-local-portion revenue for that municipality plus an amount the Department determines is necessary to offset any amounts that were erroneously unpaid in a previous month and not including any amount that the Department determines is necessary to offset any amounts that were erroneously paid to such municipality in a previous month;

(2) for each municipality described in item (2) of subsection (a), the Department shall certify an amount equal to 90% of the reduced-local-portion revenue for that municipality plus an amount the Department determines is necessary to offset any amounts that were erroneously unpaid in a previous month and not including any amount that the Department determines is necessary to offset any amounts that were erroneously paid to such municipality in a previous month; and

(3) for each municipality described in item (3) of subsection (a), the Department shall certify an amount determined by the Department under subsection (b) based on the availability of those moneys in the Fund.

As soon as practical after the first day of each month, the Comptroller shall cause the orders to be drawn for the payment from the Municipal Reduced Local Portion Reimbursement Fund of the respective amounts contained in the Department's certification. Any moneys remaining in the Fund after the monthly payments must be deposited into the Local Government Distributive Fund.

(e) Of the moneys deposited each month into the Municipal Reduced Local Portion Reimbursement Fund:

(1) a minimum of 1/12th of $8,000,000 is dedicated, if needed, to making the payments to reduced-local-portion municipalities described in item (1) of subsection (d);

(2) a minimum of 1/12th of $6,000,000 is dedicated, if needed, to making the payments to reduced-local-portion municipalities described in item (2) of subsection (d); and

(3) a minimum of 1/12th of $6,000,000 is dedicated, if needed, to making the payments to extraordinary hardship reduced-local-portion municipalities described in in item (3) of subsection (d). Each State fiscal year, these minimum dedicated amounts must be increased by the annual rate of increase, for the previous calendar year, of the Consumer Price Index for All Urban Consumers for all items, published by the United States Bureau of Labor Statistics.".