IL SB2906

Amends the Counties Code to authorize home rule counties to impose a use tax on tangible personal property purchased at retail and titled or registered to county residents, at increments of 1/4% based on selling price.

When a home rule county imposes the tax, the Department of Revenue shall collect the tax on out-of-county purchases; tax payment or exemption proof must be obtained before property titling or registration is issued.

The Department of Revenue retains 2% of collected taxes for the Tax Compliance and Administration Fund and disburses the remainder to counties by the 25th of each month based on collections from two months prior.

County ordinances imposing or discontinuing the tax must be filed with the Department between October 1 and April 1 (effective July 1) or between April 1 and October 1 (effective January 1); no ordinances may be filed before the effective date of this Act and collection cannot begin before January 1, 2025.

Counties may continue collecting the use tax themselves under existing authority in situations where the Department does not collect under this subsection.