Current through Register Vol. 48, No. 38, September 20, 2024
a)
A municipality or county that receives a disbursement of tax proceeds
from the Department may contract with a third party for the purpose of ensuring
that the municipality or county receives the correct disbursement from the
Department and monitoring disbursements. The third party may not contact the
Department on behalf of the municipality or county, but instead must work
directly with the municipality or county to acquire financial information. A
third party may, however, directly access a municipality's or county's
financial information that is provided by the Department by electronic means
under Section 11 of the Retailers' Occupation Tax Act, provided that the third
party meets all other conditions under Section 5-10 of the Act
for the receipt of financial information. To be eligible to receive
financial information from the municipality or county, the third party
must:
1)
enter into a
confidentiality agreement with the municipality or county in the form and
manner required by the Department prior to receiving the financial
information;
2)
have an existing contract with the municipality or county at the time
the third party enters into the confidentiality agreement with the municipality
or county; a copy of that existing contract must be on file with the
Department;
3)
abide by the same conditions as the municipality or county with respect
to the furnishing of financial information under Section 11 of the Retailers'
Occupation Tax Act; and
4)
be registered with the Department as required by Section
850.130
.
[50 ILCS
355/5-10]
b)
Municipalities and counties may
negotiate a fee with third parties. This fee may be in the form of a
contingency fee for a percentage of the amount of additional distributions the
municipality or county receives for no more than 3 years following the first
disbursement to the local government resulting from the third party's
services under the Act. [50 ILCS
355/5-20(b)]
c) The Local Government Revenue Recapture Act
prohibits the following persons from becoming registered third parties:
1)
a person who has been convicted of
a felony related to financial crimes under any federal or State law, if the
Department, after investigation and a hearing if requested by the applicant,
determines that the person has not been sufficiently rehabilitated to warrant
the public trust, including an individual or any employee, officer, manager,
member, partner, or director of an entity that has been convicted as provided
in this subsection (1);
2)
a person, if any employee, contractual employee, officer, manager, or
director thereof, or any person or persons owning in the aggregate more than 5%
thereof, is employed by or appointed or elected to the corporate authorities of
any municipality or county in this State;
3)
a person, if any employee,
contractual employee, officer, manager, or director thereof, or any person or
persons owning in the aggregate more than 5% thereof, is not or would not be
eligible to receive a certificate of registration under this Act or a license
under the Illinois Public Accounting Act for any reason;
4)
a person who is a family member of
any person who is employed by or appointed or elected to the corporate
authorities of any municipality or county in the State;
5)
qualified practitioners,
as defined in Section
850.110;
6)
third parties owned, in whole or
in part, by any entity that competes directly or indirectly with any taxpayer
whose financial information the third party is seeking or receiving;
and
7)
persons who
own in whole or in part, directly or indirectly, any entity that competes,
directly or indirectly, with any taxpayer whose financial information the
person is seeking or receiving. [50 ILCS
355/5-35(b)]
