Agencies
Services
What steps must be taken to establish a municipal Non-Home Rule Sales Tax?
- Interest is paid on non-home rule municipal sales taxes. Collections are deposited into the non-home rule fund and the money is promptly invested by the Office of the State Treasurer. Interest income earned during each month is reported to us for monthly distribution. This interest amount will be included in the disbursement the municipality receives each month.
- Non-home rule municipal sales tax will be disbursed separately from other taxes administered by IDOR. You will receive your non-home rule municipal sales tax disbursement in the same manner that you have chosen to receive your municipal sales tax disbursement.
- Taxpayers are allowed to take a discount for timely filing and payment of these taxes.
- An administration fee is retained by the state treasurer to cover the costs we incur administering the taxes.
- Any allowable discount or fee that is taken is reflected in the local government distributions.
The corporate authorities of a non-home rule municipality may, by ordinance or resolution, submit to the electors of the municipality the question of whether the municipality shall impose this tax. The municipal clerk shall certify the question to the election authority. If a majority of the electors voting on the proposition vote in favor of the tax, the municipality may impose the tax. The municipality shall file a certified copy of the ordinance or resolution imposing the tax together with a certification that the ordinance received referendum approval with IDOR on or before May 1 for the tax rate to become effective July 1 or on or before October 1 for the tax rate to become effective January 1 of the following year.
For more information, see PTAX-1002-8-A, Local Governments' Guide to Tax Allocations, Non-Home Rule Municipal Sales Taxes.