HB3880 Summary

• Allows municipalities to impose and collect use and occupation taxes themselves instead of relying on the Department of Revenue, through passage of a municipal ordinance.

• When a municipality collects these taxes directly, none of the proceeds collected shall be transferred into the Tax Compliance and Administration Fund (eliminating the 1.5% administrative fee otherwise deducted).

• Applies to home rule municipalities' retailers' occupation tax (Section 8-11-1), home rule municipal service occupation tax (Section 8-11-5), non-home rule municipal retailers' occupation tax (Section 8-11-1.3), non-home rule municipal service occupation tax (Section 8-11-1.4), and special provisions for municipalities with 20,000-25,000 population (Sections 8-11-1.6 and 8-11-1.7).

• Also permits municipalities with 2,000,000 or more inhabitants to collect use tax on titled/registered property directly rather than through the Department of Revenue.

• Effective immediately upon becoming law.