When a portion of land is annexed into or disconnected from a municipality’s taxing jurisdiction, in addition to filing the annexation or disconnection notice with the county government, the municipality must also notify us that the annexation or disconnection has occurred.
The municipality must send a letter, along with a copy of the annexation ordinance (or, in the case of a disconnection, the ordinance, final judgment, or resolution of disconnection) to:
The letter should include
We will use this information to identify the affected businesses and to correct our records to reflect the change in taxing jurisdiction.
Prompt notification of an annexation or disconnection will ensure the timely and proper allocation of your local share of the sales tax paid by the newly annexed or disconnected businesses.
Failing to notify us of an annexation or disconnection may result in the misallocation of sales tax revenue. Currently, the law provides for adjustment of only those amounts erroneously disbursed within the six-month period prior to the discovery of misallocation. Delays in submitting proper notification of an annexation that included a retail business may result in unrecoverable revenue losses. Delays in submitting proper notification of a disconnection that included a retail business may result in thousands of dollars in disbursements that will be taken from you and allocated to the correct taxing jurisdiction.
Examples of the six-month time period when sales tax has been misallocated:
The Department can only make changes to your population count to include residents located within the annexed territory pursuant to Section 2 of the State Revenue Sharing Act, which provides that the clerk of the municipality shall report the annexation to the Department of Revenue and state the number of residents within the territory that was annexed, based on the last census conducted by the federal, state, or municipal government and certified by the Illinois Secretary of State. See 30 ILCS 115/2(b). In addition, the Act provides that the county in which the annexed territory is located shall verify the number of residents reported by the municipality.
The United States Census Bureau reports population by a block or tract of land. Due to confidentiality, they cannot report population on an individual address. Therefore, unless the territory you have annexed is the entire block or tract of land as reported by the Census Bureau, the county will not be able to verify the number of residents within the territory that was annexed, as required by the State Revenue Sharing Act.
If the annexed territory does not meet the above standards, we cannot adjust your population count until the next decennial census or until your municipality has a special census completed by the United States Census Bureau.
Phone: 217 785-6518
Fax: 217 524-0526