A. Except as provided in Sections 3-27-050 and 3-27-060 of this chapter, a tax is imposed upon the privilege of using in the city nontitled tangible personal property which is purchased at retail from a retailer located outside the city. The tax shall be at the rate of one percent of the property's selling price, as the term "selling price" is defined by the Illinois Use Tax Act, as amended.
B. (1) The tax imposed by this chapter and the obligation to pay the tax is upon the purchaser or user of nontitled tangible personal property. Unless the seller collects the tax pursuant to Section 3-27-080 of this chapter, the purchaser or user shall pay the tax directly to the department in accordance with Section 3-27-070 and any rules or regulations that may be promulgated by the comptroller.
(2) The tax imposed by this chapter shall be paid whenever a person purchases nontitled tangible personal property for use in the city. Evidence that a purchaser resides in the city or that the property was delivered to a location in the city shall be prima facie evidence that property is purchased for use in the city.
C. If nontitled tangible personal property purchased from a retailer outside the city is used outside the city before being brought into the city for use in the city, the "selling price" of the property for purposes of computing the tax imposed by subsection (A). of this section shall be reduced by an amount which represents a reasonable allowance for depreciation attributable to the prior period of out-of-city use.
D. To prevent multiple taxation, the use of nontitled tangible personal property in the city by a person who paid a municipal tax in another municipality with respect to the sale, purchase or use of the property shall be exempt from the tax imposed by this chapter to the extent of the amount of the tax properly due and actually paid in the other municipality. For the purpose of this provision:
1. the term "tax properly due" does not include the amount of any tax that the other municipality has agreed to rebate, reimburse, refund or otherwise return (collectively "rebate"); and
2. the term "tax actually paid" does not include:
a. the amount of any tax that the other municipality rebates; or
b. the amount of any rebate that is received by the taxpayer, the taxpayer's agent, or any entity that, directly or indirectly, (i) is owned, managed or controlled by the taxpayer, (ii) is under common ownership, management or control with the taxpayer, or (iii) owns, manages or controls the taxpayer.
E. Nothing in this chapter shall be construed to impose a tax upon any business or activity which, under the constitution and other laws of the United States and the State of Illinois, may not be made the subject of taxation by the city.
(Added Coun. J. 11-22-91, p. 9180; Amend Coun. J. 12-12-01, p. 75777, § 2.5; Amend Coun. J. 12-4-02, p. 99931, § 2.3; Amend Coun. J. 3-31-04, p. 20916, § 3.11; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 3; Amend Coun. J. 11-19-14, p. 98063, § 2)