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Licensing Power and Local Sources of
Municipal Revenue
By Elizabeth Downing, Legislative Associate,
Illinois Municipal League, Revised July 1995

This document was originally prepared by Frank M. Pfeifer, who served as Legislative Counsel and General Counsel from 1945 through 1984. It was revised by Thomas W. Kelty, Chief Counsel until 1991. The document was revised in September of 1988 by Roger Huebner, the Illinois Municipal League's Director of Legislative Programs.

This update includes material developed by Stewart H. Diamond and the attorneys of Ancel, Glink, Diamond, Cope & Bush, P.C., as included in the 1994-1995 edition of the Illinois Municipal Handbook.

All of the items mentioned below apply to both home rule and non-home rule municipalities. Home rule municipalities have additional powers in some of these matters, but no attempt will be made to cover them in this article.

I. MUNICIPAL STATUTORY LICENSING POWER

The following businesses and occupations may be regulated and licensed and in some instances taxed and located, dependent upon the wording of the particular section of the statute.

  1. Ambulances (65 ILCS 5/11 5-7)
  2. Amusements (65 ILCS 5/11-42-5) including:

    Amusement & Carnival Rides (430 ILCS 85/2-17)
    Circuses
    Coin Operated Games or Musical Devices (65 ILCS 5/11-55-1)
    Motion Pictures
    Public Dances
    Shooting Galleries
    Skating Rinks
    Tennis Clubs
    Theatrical Exhibitions

  3. Athletic Contests (65 ILCS 5/11-54-1)
  4. Auctioneers (65 ILCS 5/11-42-1)
  5. Bagatelle Tables (65 ILCS 5/11-42-2)
  6. Bankers (65 ILCS 5/11-42-1)
  7. Barbers (65 ILCS 5/11-42-1)
    [NOTE: Licensing power preempted by 225 ILCS 410/1-3]
  8. Bed and Breakfast Establishments (50 ILCS 820/3)
  9. Billiard Tables (65 ILCS 5/11-42-2)
  10. Blacksmith Shops (65 ILCS 5/11-42-8)
  11. Boats and Harbors (65 ILCS 5/11-44-1 to 5/11-44-8)
  12. Bowling Alleys (65 ILCS 5/11-42-2)
  13. Breweries (65 ILCS 5/11-42-8)
  14. Brokers (65 ILCS 5/11-42-1) except real estate and insurance brokers
  15. Buses, runners for (65 ILCS 5/11-42-4)
  16. Cabins (65 ILCS 5/11-42-8)
  17. Cable Television (65 ILCS 5/11-42-11)
  18. Cabmen (85 ILCS 5/11-42-6)
  19. Cabs, runners for (65 ILCS 5/11-42-4)
  20. Camps (65 ILCS 5/11-42-8)
  21. Carnivals (65 ILCS 5/11-54.1-2)
  22. Carnival Rides (430 ILCS 85/2-17)
  23. Carters (65 ILCS 5/11-42-6)
  24. Cigarette, tax (65 ILCS 5/8-11-3)
    [NOTE: Home Rule Preemption in 65 ILCS 5/8-11-6a]
  25. Coal and Lumber Yards (65 ILCS 5/11-8-5)
  26. Coffee Houses (65 ILCS 5/11-42-1)
  27. Coin in the Slot Devices (35 ILCS 510/7 & 65 ILCS 5/11-55-1)
  28. Coliseum, municipalities of 75,000 or less (65 ILCS 5/11-67-6)
  29. ConventionHall (65 ILCS 5/11-65-6)
  30. Distilleries (65 ILCS 5/11-42-8)
  31. Draymen (65ILCS 5/11-42-6)
  32. Dry Cleaners (65 ILCS 5/11-42-8)
  33. Electrical Contractors (65 ILCS 5/11-33-1)
  34. Elevator Operators (65 ILCS 5/11-34-1)
  35. Exhibitions (65 ILCS 5/11-54-1 & 65 ILCS 5/11-42-5)
  36. Expressmen (65 ILCS 5/11-42-6)
  37. Filling Stations (65 ILCS 5/11-8-4)
  38. Fire Extinguishers (65 ILCS 5/11-8-6)
  39. Florists(65 ILCS 5/11-42-1)
  40. Food Dealers (65 ILCS 5/11-42-5).
    (65 ILCS 5/11-20-2 and 3), including:

    Alcoholic Liquor Dealers-Retail
    Bakeries
    Food Manufacturers and Delivery Vehicles
    Fruit Stores
    Grocery Stores
    Ice Cream Parlors
    Markets
    Meat Dealers
    Milk Dealers
    Restaurants
    Tobacconists

  41. Foundries (65 ILCS 5/11-42-8)
  42. Garages (65 ILCS 5/11-42-8)
  43. Hackmen (65 ILCS 5/11-42-6)
  44. Harbors (Generally) (65 ILCS 5/11-44-6 & 7)
  45. Harbors for Recreational Use, city or village of less than 500,000 (65 ILCS 5/11-92-3)
  46. Hawkers (65 ILCS 5/11-42-5)
  47. Heating, Air Conditioning and Refrigeration Contractors (65 ILCS 5/11-32-1)
  48. Hospitals (65 ILCS 5/11-22-1)
  49. Hotels or Motels, with sleeping accommodation for 20 or more persons (65 ILCS 5/11-30-5)
  50. Hotels, runners for (65 ILCS 5/11-42-4)
  51. Intoxicating Liquor Dealers (235 ILCS 5/4-1)
  52. Itinerant Merchant/Vendor (65 ILCS 5/11-42-5 & 225 ILCS 465-1)
  53. Junk Yards (65 ILCS 5/11-42-3)
  54. Laundries (65 ILCS 5/11-42-8)
  55. Livery Stables (65 ILCS 5/11-42-1)
  56. Lumber Yards (65 ILCS 5/11-42-1)
  57. Machine Shops (65 ILCS 5/11-42-8)
  58. Mason Contractors (65 ILCS 5/11-36-1)
  59. Medical Dispensaries (65 ILCS 5/11-22-1)
  60. Mobile Homes (65 ILCS 5/11-5-8 & ll-42-8a & 8b and 210 ILCS 115-18)
  61. Money Changers, but not currency exchanges (65 ILCS 5/11-42-1)
  62. Motor Vehicles, Dealers in dismantled or wrecked vehicles (65 ILCS 5/11-42-3)
  63. Motor Vehicles & Motor Bicycles (65 ILCS 5/8-11-4)
  64. Nursing Home and Home for the Aged (210 ILCS 45/3-104)
  65. Oil and Gas Mines (65 ILCS 5/11-56-1)
  66. Omnibus Drivers (65 ILCS 5/11-42-6)
  67. Packing Houses (65 ILCS 5/11-42-7)
  68. Parking Garages, lots and ramps (65 ILCS 5/11-42-12)
  69. Pawnbrokers (65 ILCS 5/11-42-5)
  70. Peddlers (65 ILCS 5/11-42-5)
  71. Pigeonhole Tables (65 ILCS 5/11-42-2)
  72. Pin Ball (65 ILCS 5/11-42-2)
  73. Pool Tables (65 ILCS 5/11-42-2)
  74. Porters (65 ILCS 5/11-42-6)
  75. Public Houses, runners for (65 ILCS 5/11-42-4)

    August 1995 / Illinois Municipal Review / Page 13

  76. Public Scales (65 ILCS 5/11-42-1)
  77. Raffles (230 ILCS 15/2)
  78. Railroads, runners for (65 ILCS 5/11-42-4)
  79. Rooming Houses (65 ILCS 5/11-30-3)
  80. Scavengers and Garbage Collectors (Strub v. Deerfield, 19 ILL. 2d 401 & 65 ILCS 5/11-19-1 et seq.)
  81. Second-Hand Articles (65 ILCS 5/11-42-3)
  82. Ships, runners for (65 ILCS 5/11-42-4)
  83. Steam Boiler Operator (65 ILCS 5/11-34-1)
  84. Street Advertising, Sign Painting (65 ILCS 5/11-80-15)
  85. Street Sales (65 ILCS 5/11-80-20)
  86. Tanneries (65 ILCS 5/11-42-7)
  87. Taxicabs (65 ILCS 5/11-42-6)
  88. Theatrical Ticket Brokers (65 ILCS 5/11-42-1)
  89. Transient Merchant & Vendor (225 ILCS 465/1 & 65 ILCS 5/11-42-5)
  90. Undertaking Establishments (65 ILCS 5/11-22-1)
  91. Vehicles, special charter municipalities (65 ILCS 5/11-41-1)
  92. Water Craft (65 ILCS 5/11-44-3)
  93. Weights and Measures (65 ILCS 5/11-53-1)

II. MUNICIPAL POWER TO CONTROL BUSINESS
ACTIVITY WITHOUT LICENSING

  1. Arborist or Tree Expert (65 ILCS 5/11-42-13)
  2. Animals (65 ILCS 5/11-20-9 & 510 ILCS 5/24)
  3. Brick, Firewood. Coal, & Hay (65 ILCS 5/11-53-1)
  4. Docks, Wharves (65 ILCS 5/11-44-1)
  5. Electrical Equipment (65 ILCS 5/11-37-2)
  6. Markets & Market House (65 ILCS 5/11-20-1)
  7. Meat & Poultry Inspection (225 ILCS 650/4)
  8. Roofing Contractors (225 ILCS 335/11)

III. REGULATORY AND LICENSING POWERS WHICH
HAVE BEEN PREEMPTED

  1. Architectural Practice (225 ILCS 5/03)
  2. Athletic Trainers (225 ILCS 5/33)
  3. Barbers and Cosmetologists (225 ILCS 410/1-3)
  4. Business and Vocational Schools (105 ILCS 425/27)
  5. Certified Shorthand Reporters (225 ILCS 415/25)
  6. Clinical Psychologist (225 ILCS 15/28)
  7. Clinical Social Worker (225 ILCS 20/37)
  8. Dental Practice (225 ILCS 25/2)
  9. Detection of Deception Examiners (225 ILCS 430/32)
  10. Detectives, Alarm, and Security (225 ILCS 446/40)
  11. Dietician and Nutrition Counselor (225 ILCS 30/180)
  12. Environmental Health Practitioner (225 ILCS 37/90)
  13. Funeral Director or Embalmer (410 ILCS 5/2(c))
  14. Horse Racing (230 ILCS 5/18)
  15. Insurance Brokers (215 ILCS 5/2 and 5/415), 65 ILCS 5/11-42-1 also
    amended to remove the specific municipal authority to regulate insurance brokers.
  16. Interior Designer (225 ILCS 310/31)
  17. Land Surveyors (225 ILCS 330/47)
  18. Marriage and Family Therapist (225 ILCS 55/170)
  19. Medical Practice (225 ILCS 60/6)
  20. Nursing (225 ILCS 65/49)
  21. Nursing Home Administrators (225 ILCS 70/36)
  22. Occupational Therapist (225 ILCS 75/21)
  23. Optometric Practice (225 ILCS 80/28)
  24. Pharmacy Practice (225 ILCS 85/38; 65 ILCS 11-22-1)
  25. Physical Therapist (225 ILCS 90/36)
  26. Physicians Assistant (225 ILCS 95/23)
  27. Podiatry Practice (225 ILCS 100/43)
  28. Professional Boxing & Wrestling (225 ILCS 105/26)
  29. Professional Counselor and Clinical Counselor (225 ILCS 107/170)
  30. Professional Engineering (225 ILCS 325/46)
  31. Psychologists' Registration (225 ILCS 325/29)
  32. Public Accounting (225 ILCS 450/31)
  33. Real Estate Brokers and Salesmen (225 ILCS 445/33)
  34. Speech — Language Pathology and Audiology Practice (225 ILCS 110/2)
  35. Security Alarm Contractors (225 ILCS 445/7)
  36. Security Guards and Watchmen (225 ILCS 445/7)
  37. Social Workers' Registration (225 ILCS 20/37)
  38. Structural Engineering (225 ILCS 340/37)
  39. Veterinarians (225 ILCS 50/26)
  40. Water Well and Pump Installation Contractors (225 ILCS 345/29)
  41. Wholesale Drug Distributor (225 ILCS 120/185)

IV. MUNICIPAL PROPERTY TAXES NOT REQUIRING
REFERENDUM APPROVAL IN MUNICIPALITIES NOT
SUBJECT TO THE TAX CAP

  1. Chlorination of Sewage (65 ILCS 5/11-142-3)
    Rate: .02%
    [For treatment of sewage to meet requirements of the Pollution Control Board.]

  2. City Sewage Fund Tax (65 ILCS 5/11-143-1)
    Rate: .01666%
    [For the extension and maintenance of sewers.]

  3. City Water Fund Tax (65 ILCS 5/11-131-1)
    Rate: .01666%
    [For the extension and maintenance of waterworks system.]

  4. Corporate Fund Property Tax (65 ILCS 5/8-3-1)
    Rate:.25%
    Tax may be increased by referendum to .4375% [This tax is the one most frequently levied by municipalities. The proceeds of this tax levy can be used for any corporate purpose.]

  5. Emergency Services and Disaster Operations (65 ILCS 5/8-3-16)
    Rate: .05%
    [The amount collectible under this tax levy may not exceed 25 cents per capita.]

  6. Fire Protection Tax (65 ILCS 5/11-7-1)
    Rate: .075%

  7. Fire Fighters' Pension Fund (40 ILCS 5/4-118)
    [Levy whatever rate is necessary to produce the amount needed to meet the requirements of the pension fund.]

  8. Garbage Tax (65 ILCS 5/11-19-4)
    Rate: .10% if population over 25,000 or the rate in effect on July 1,1969 and .20% if population less than 25,001 or the rate in effect on July 24, 1969. [For the collection and disposal of garbage; in addition, a service charge may be levied by ordinance.]

  9. Harbor Construction Tax (65 ILCS 5/11-123-11)
    Rate: .0125%
    [For each of four consecutive years for the construction of the harbor.]
  10. Illinois Municipal Retirement Fund (40 ILCS 5/7-171)
    [Municipality may levy a tax which shall not exceed amount appropriated for municipality contributions.]

  11. Installment Contracts (65 ILCS 5/11-76.1-2)
    Rate: may levy whatever rate is necessary to pay annual amount due or rent on purchase or lease of real or personal property for public purposes pursuant to contracts providing for payments in annual installments during a period not exceeding 20 years. [Can be made subject to a referendum if an appropriate petition is filed within 60 days after newspaper publication of the ordinance authorizing the tax.]

  12. Insurance and Tort Judgments (745 ILCS 10/9-107)
    [Levy whatever rate is necessary to pay insurance or self-insurance costs, create reserves, pay the cost of risk management programs, to pay for legal services in protecting against liability and to pay judgments or settlements.]

  13. Joint Recreation Programs for the Handicapped (65 ILCS 5/11-95-14)
    Rate:.04%

  14. Lease of Building from Public Commission (50 ILCS 20/18)
    [Levy whatever rate is necessary to pay annual rent.]

  15. Library Tax (75 ILCS 5/3-1, 5/3-4)
    Rate:.15%
    .60% with referendum [For the establishment and maintenance of a free public library.]

  16. Medicare Tax (40 ILCS 5/21-110.1)
    [Levy amount necessary to meet cost of participating in Federal Medicare Program.]

  17. Mentally Deficient Persons Facilities (65 ILCS 5/11-29.1-1)
    Rate: .1% subject to backdoor referendum

  18. Municipal Auditing Tax (65 ILCS 5/8-8-8)
    [Tax is levied at whatever rate is necessary to produce a sum sufficient to meet the cost of the required audit.]

    Page 14 / Illinois Municipal Review / August 1995

  19. Police Pension Fund (40 ILCS 5/3-125)
    Rate: whatever rate is necessary to produce a sum sufficient to meet the requirements of the fund.

  20. Police Protection Tax (65 ILCS 5/11-1-3)
    Rate: .075%

  21. Public Building Restoration Fund (65 ILCS 5/11-70-1)
    Rate: .08333%
    [For not to exceed ten successive years to restore municipal buildings damaged by fire or storm.]

  22. Public Comfort Station Tax (65 ILCS 5/11-21-4)
    Rate: .0333%
    [To be used for the establishment, equipment, and maintenance of public comfort stations.]

  23. Real Estate Tax (See Corporate Fund Property Tax)

  24. School Crossing Guards Tax (65 ILCS 5/11-80-23)
    Rate: .02%
    [To be used to hire part-time school crossing guards.]

  25. Sewage Treatment or Disposal Plants (65 ILCS 5/11-142-1)
    Rate; .075%
    [To be used for operation and maintenance of plant.]

  26. Social Security Tax (40 ILCS 5/21-110)
    [Levy whatever rate is necessary to meet the cost of participation in the "Social Security Act."]

  27. Special Assessment Public Benefit Tax (65 ILCS 5/9-2-39, 5/9-2-49)
    Rate: .05%
    [For the sole purpose of paying the amounts assessed, or to be assessed, against the municipality for public benefits.]

  28. Street and Bridge Tax (65 ILCS 5/11-81-1, 5/11-81-2)
    Rate: .06% and may be increased to .10% by vote of three-fourths of governing body.
    [For street and bridge purposes.]

  29. Street Lighting Tax (65 ILCS 5/11-80-5)
    Rate: .05%, 2/3 vote of governing body required.

  30. Unemployment Insurance (745 ILCS 10/9-107)
    [Levy whatever rate is necessary to meet the costs of unemployment insurance.]

  31. Wastewater Disposal System (65 ILCS 90/6 & 22)
    Rate: No limit but user charge may also be assessed.

  32. Workers' Compensation and Occupational Diseases Claims (745 ILCS 10/9-107)
    [Levy whatever rate is necessary to pay for legal services, purchase insurance, purchase claim services, pay for judgments and settlements, or otherwise to provide protection against liability under the Workers' Compensation Act or Workers' Occupational Diseases Act.]

V. MUNICIPAL PROPERTY TAXES WHICH MAY BE
LEVIED IF APPROVED BY REFERENDUM

Proceeds from special taxes approved by referendum can be used only for the purpose designated by the particular statute.

  1. Airport Tax (65 ILCS 5/11-103-16)
    Rate: .10%

  2. Ambulance Tax (65 ILCS 5/11-5-7)
    Rate: .25%
    In addition to the tax a service charge may be established

  3. Blighted Area Redevelopment (315 ILCS 30/28)

  4. Bridge & Terminal Tax (65 ILCS 5/10-605)
    Rate: .25%

  5. Community Building Tax (65 ILCS 5/11-63-1)
    Rate:.075%

  6. Community Mental Health Facilities (405 ILCS 20/4 & 5)
    Rate: .15%

  7. Community Nurse Tax (65 ILCS 5/11-18-2)
    Rate: .0075%

  8. Corporate Fund Property Tax (65 ILCS 5/8-3-1)
    Rate: .25% without referendum
    .4375% with referendum

  9. Cultural Activities Tax (65 ILCS 5/11-45-1)
    Rate: .04% for municipal band or programs in performing arts.

  10. Cultural Centers (65 ILCS 5/11-45.1-4)
    Rate: .25%

  11. Fire Protection Tax (65 ILCS 5/11-7-1, 5/11-7-3)
    Rate: .075% without referendum
    .40% maximum after referendum

  12. Forestry Program Tax (65 ILCS 5/11-73-1)
    Rate: .05% .

  13. Levee Tax (65 ILCS 5/11-112-1 and 5/11-112-2)
    Rate: .1666% limited to a period of not more than seven years; §11-112-3 authorizes annual levy of .1666% for municipalities subject to floods.

  14. Library Tax (75 ILCS 5/3-1 and 5/3-4)
    Rate: .15% without referendum
    .60% with referendum

  15. Library and Gymnasium Tax (75 ILCS 50/1 and 50/2)
    Rate: .15% for Villages of 2,500 population or less.

  16. Monuments and Memorials Tax (65 ILCS 5/11-116-1)
    Rate: .01%

  17. Municipal Buildings (65 ILCS 5/11-64-1 & 2)
    Rate: amount sufficient to serve bonds

  18. Municipal Coliseum Tax (65 ILCS 5/11-66-1)
    Rate: .25% to establish a coliseum and .05% annually thereafter to maintain it, in cities and villages under 500,000 population.

  19. Municipal Coliseum Tax (65 ILCS 5/67-4)
    Rate: .025% to establish and maintain a coliseum, in any
  20. Parks and Boulevards Tax (65 ILCS 5/11-99-1)
    Rate: .03% applies to municipalities of not less than 5,000 nor more than 100,000 population.

  21. Playground and Recreation Tax (65 ILCS 5/11-95-7 and 5/11-95-8)
    Rate: .09% with referendum
    .20% authorized increased rate

  22. Police Protection Tax (65 ILCS 5/11-1-3 and 5/11-1-5.1)
    Rate: .075% without referendum
    .40% maximum with referendum

  23. Public Parks Tax (65 ILCS 5/11-98-1)
    Rate: .075% limited to municipalities less than 85,000 population.

  24. Public Health Board Tax (65 ILCS 5/11-17-1)
    Rate: .075% limited to municipalities over 100,000 and less than 200,000 population.

  25. Public Hospital Tax (65 ILCS 5/11-23-1)
    Rate: .06% limited to cities of less than 100,000 population.

  26. Railroad Grade Separation Tax (65 ILCS 5/11-58-2)
    Rate: .50% may not be levied for more than ten successive years.

  27. Recreational Programs for the Handicapped provided jointly by two or more municipalities. (65 ILCS 5/11-95-14)
    Rate: .04%

  28. Restoration; of Neglected Cemeteries Tax (65 ILCS 5/11-50-1)
    Rate: .025% applies to municipalities of less than 25,000 population.

  29. Sewage Disposal Plant Tax (65 ILCS 5/11-143-2)
    Rate: .075% applies to municipalities that are not in a sanitary district (less than 100,000 residents).

  30. Stormwater Management Tax (65 ILCS 5/11-113,1-1)
    Rate: .06% if the municipality owns and operates a wastewater treatment plant and .03% otherwise. Municipality must be at least partly in county under 1.5 million in population that is served by the Northeastern Illinois Planning Commission.

  31. Transportation System Tax (65 ILCS 5/11-120-1)
    Rate: .03%

  32. Tuberculosis Sanatoriums Tax (65 ILCS 5/11-29-1)
    Rate: .025% for municipalities under 75,000 population
    .05% for municipalities over 75,000 population.

  33. Waterworks Purchase, Construction or Enlargement (65 ILCS 5/11-128-1)
    Rate: .1666%, not more than 30 years.

VI. LOCALLY IMPOSED MISCELLANEOUS
REVENUE SOURCES

  1. Working Cash Fund
    (65 ILCS 5/8-7-1 thru 5/8-7-6)

  2. Municipal installment purchase or lease of real or personal property over a period not to exceed 20 years.
    (65 ILCS 5/11-76.1-1 thru 5/11-76.1-4)
    Tax to pay installments may be levied-subject to back door referendum.

    August 1995 / Illinois Municipal Review / Page 15

  3. Municipal installment purchase of lease of real or personal property over a period not to exceed 10 years, but with no authority for special tax or referendum requirement. (65 ILCS 5/11-61-3)
  4. Road Improvement Impact Fees (65 ILCS 5/5-901 et seq.)
    Funds may be collected from developers by home rule municipalities to pay for the improvement or construction of roads directly affected by traffic demands generated from the new development.

  5. Special Service Districts
    Under the Constitution of 1970, (6(1) and 7 of Article VII) municipalities have the power to impose additional taxes upon areas within their boundaries for the providing of special services to those areas and for the payment of the debt thereby incurred. (See 35 ILCS 235/1 thru 235/11)

  6. Accumulation of Funds for Capital Improvements (65 ILCS 5/8-3-1)
    Unpledged funds on hand at the end of fiscal year may be accumulated for a particular purpose and by action of the corporate authorities be transferred to the capital improvement fund but cannot exceed 31 of assessed value of taxable property in the municipality. (See 65 ILCS 5/8-2-9.5 for the statutory provision regarding municipalities which have adopted the budget system).

  7. Parking Meters and Parking Lots
  8. Temporary investment in short term government bonds or other securities. (30 ILCS 235/2)

  9. Penalty for late payment of municipal utility bills. (65 ILCS 5/11-117-12)

  10. Reimbursement for fire protection to junior colleges. (65 ILCS 5/11-6-4)

  11. Contracts with schools, hospitals, churches, apartment complexes and shopping centers for the regulation of traffic. (65 ILCS 5/1-1-7; 625 ILCS 5/11-209)

  12. Utility Recapture Agreements (65 ILCS 5/9-5-1)

  13. Amusement Taxes (65 ILCS 5/11-54-1, 5/11-55-1)

  14. Motor Vehicle Tax (Wheel Tax) (65 ILCS 5/8-11-4)

  15. Contributions under annexation agreements (65 ILCS 5/11-15.1-2)

  16. Sewer and Water Connection Fees (65 ILCS 5/11-150-1)

  17. Personal Property Tax Replacement Fund (30 ILCS 115/12 See 50 ILCS 420/4.1 for provisions regarding Personal Property Tax Replacement anticipation Notes)

  18. Tax Increment Financing (65 ILCS 5/11-74.4-1 thru 11)

  19. Hotel/Motel Tax (65 ILCS 5/8-3-14)

  20. Restitution up to $500 for emergency reponse to DUI incident resulting in response by police, fire fighter or ambulance. (730 ILCS 5/5-5-3)
  21. Underground Storage Tank Fund (415 ILCS 5/22.18b)
    State funds can be available for cleanup of petroleum from underground tanks when certain requirements are met.

  22. Non Referendum G.O. Bonds up to 1/2 of 1% of assessed value. (65 ILCS 5/8-5-16)

  23. Home Rule Retailers', Service Occupation, and Use Taxes (65 ILCS 5/8-11-1, 5 & 6)
    Rate: unlimited in 1/4% increments on state sales tax base (excludes food and drugs).
    [NOTE: Tax must be collected by the State]

  24. Utility Tax on Water, Gas, Electric, Telephone or Telegraph (65 ILCS 5/8-11-2)
    Rate: up to 5% of gross receipts

VII. APPROPRIATION BUDGET AND LEVY ORDINANCES

Listed below are several steps necessary to levy taxes for a city or village.

  1. Appropriation Ordinances passed during the first quarter of the fiscal year. (65 ILCS 5/8-2-9)
    a. Must be published, either in a newspaper or in pamphlet form (65 ILCS 5/8-2-9)
    b. a public hearing is required with respect to the appropriation ordinance in municipalities with a population of over 2,000. (65 ILCS 5/8-2-9)
    1. Hearing must be held prior to adoption.
    2. 10 days prior to adoption the latest version of the proposed ordinance must be conveniently available to the public.
    3. At least 10 days notice of the hearing and the availability of the draft ordinance by publishing a notice in a newspaper published in the county and having general circulation in the municipality. Notice must state the time and place of the hearing where the draft ordinance may be viewed. The ordinance may be revised or altered with items contained in the ordinance increased or decreased subsequent to a public hearing and before final action.
    c. Must be itemized and specific as to the various items and services the public fund will be used to purchase and each line item must be for a single purpose. (65 ILCS 5/8-29)
    d. A supplemental appropriation ordinance in amount not in excess of the aggregate of any additional revenue available to the municipality, or estimated to be received by the municipality subsequent to the adoption of the annual appropriation ordinance, or from fund balances available when the appropriation ordinance was adopted but that were not appropriated at that time. (65 ILCS 5/8-2-9)

  2. Alternate Method — Budget Officer (65 ILCS 5/8-2-9.1 through 5/8-2-9.10)
    a. Eliminates appropriation ordinances and makes transfer of funds easier.
    b. Can be adopted by two-thirds vote of Council

  3. A certified copy of the appropriation and budget ordinances or resolutions must be filed with the county clerk within 30 days of the adoption of the ordinance. (35 ILCS 200/18-50)

Page 16 / Illinois Municipal Review / August 1995

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