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PROPOSED INTERGOVERNMENTAL AGREEMENT
Department: Cook County Department of Revenue
Other Part(ies): Illinois Department of Revenue, Springfield, Illinois
Request: As a result of collaboration with the State of Illinois Department of Revenue on debt collection, we are hereby requesting authorization for the President to enter into and execute an Intergovernmental Agreement between Cook County ("County"), by and through the Department of Revenue and the State of Illinois, by and through its Department of Revenue ("IDOR")
Goods or Services: This agreement will allow the State to collect on behalf of the County, the Use Tax on Non-Retailer Transfers of Motor Vehicles.
Agreement Number(s): N/A
Agreement Period: Upon Approval and ongoing
Fiscal Impact: Up to $244,000.00 one-time fee plus a 2% monthly administrative fee pre-state legislation amendment; proposed 5% monthly administrative fee post-state legislation amendment. This Agreement is also Revenue Generating FY 2015 $2.5 million, $7.25 million each year after.
Accounts: 490-260
Summary: Under the Local Tax Collection Act, 35 ILCS 720/1, IDOR may agree to collect and distribute any tax lawfully imposed by the County that is similar to a tax imposed by the State and collected by IDOR. Conditioned on passage of an amendment to the Local Tax Collection Act, this Intergovernmental Agreement will allow for collection by IDOR, on behalf of the County, of the Use Tax on Non-Retailer Transfers of Motor Vehicles at the time the purchaser registers the vehicle and pays taxes imposed by the State.
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