Bill Amendment: IL SB1434 | 2017-2018 | 100th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: RENTAL-PURCHASE TAX

Status: 2017-08-25 - Public Act . . . . . . . . . 100-0437 [SB1434 Detail]

Download: Illinois-2017-SB1434-House_Amendment_001.html

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Rep. Jay Hoffman

Filed: 5/23/2017

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AMENDMENT TO SENATE BILL 1434
AMENDMENT NO. ______. Amend Senate Bill 1434 by replacing
line 8 on page 3 through line 3 on page 7 with the following:
"Section 10. Rental Purchase Agreement Occupation Tax. A
tax is imposed upon persons engaged in this State in the
business of renting merchandise under a rental-purchase
agreement in Illinois at the rate of 6.25% of the gross
receipts received from the business. Every person engaged in
this State in the business of renting merchandise shall apply
to the Department (upon a form prescribed and furnished by the
Department) for a certificate of registration under this Act.
The certificate of registration which is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act shall permit the merchant to engage in a business that is
taxable under this Section without registering separately with
the Department.
The Department shall have full power to administer and

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enforce this Section, to collect all taxes and penalties due
hereunder, to dispose of taxes and penalties so collected in
the manner hereinafter provided, and to determine all rights to
credit memoranda, arising on account of the erroneous payment
of tax or penalty hereunder. In the administration of, and
compliance with, this Section, the Department and persons who
are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties and definitions of terms, and employ the same modes
of procedure, as are prescribed in Sections 1, 1a, 2, 2-10
through 2-65 (in respect to all provisions therein other than
the State rate of tax), 2a, 2b, 2c, 3 (except provisions
relating to transaction returns), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of
the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act as fully as if those
provisions were set forth herein.
Section 15. Rental Purchase Agreement Use Tax. A tax is
imposed upon the privilege of using, in this State, merchandise
which is rented from a merchant. Such tax is at the rate of
6.25% of the rental price paid to the merchant under any rental
purchase agreement.
The tax hereby imposed shall be collected from the consumer
by a merchant maintaining a place of business in this State and

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remitted to the Department.
The tax hereby imposed and not paid to a merchant pursuant
to the preceding paragraph of this Section shall be paid to the
Department directly by any person using such merchandise within
this State.
Merchants shall collect the tax from consumers by adding
the tax to the rental price of the merchandise, when rented for
use, in the manner prescribed by the Department. The Department
shall have the power to adopt and promulgate reasonable rules
and regulations for the adding of such tax by merchants to
rental prices by prescribing bracket systems for the purpose of
enabling such merchants to add and collect, as far as
practicable, the amount of such tax.
The tax imposed by this Section shall, when collected, be
stated as a distinct item separate and apart from the rental
price of the merchandise.
The Department shall have full power to administer and
enforce this Section; to collect all taxes, penalties and
interest due hereunder; to dispose of taxes, penalties and
interest so collected in the manner hereinafter provided, and
to determine all rights to credit memoranda or refunds arising
on account of the erroneous payment of tax, penalty or interest
hereunder. In the administration of, and compliance with, this
Section, the Department and persons who are subject to this
Section shall have the same rights, remedies, privileges,
immunities, powers, and duties, and be subject to the same

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conditions, restrictions, limitations, penalties, and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 2, 3, 3-10 through 3-80, 4, 6, 7,
8, 9 (except provisions relating to transaction returns ), 10,
11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22 of the Use Tax
Act, and are not inconsistent with this Section, as fully as if
those provisions were set forth herein.
Section 20. Electronic filing and payment. Any return or
document that is required to be filed under this Act shall be
filed electronically, in the form and manner required by the
Department.
Any payment required to be made under this Act shall be
paid electronically, in the form and manner required by the
Department.
The Department shall grant a waiver of the electronic
filing or payment requirement under this Section for any
taxpayer who petitions the Department and demonstrates undue
hardship in complying with the electronic filing or payment
requirement. The waiver shall be for a period not to exceed 2
years, but may be renewed an unlimited number of times for
periods not to exceed 2 years each.
Section 25. Deposit of taxes.
(a) Each month, from the net revenue realized for the
preceding month, the Department shall pay an amount estimated

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by the Department to be required for refunds of the tax under
this Act, which shall be deposited into the Rental Purchase
Agreement Tax Refund Fund.
(b) Of the remainder of funds after the deposit under
subsection (a) of this Section:
(1) each month the Department shall pay into the State
and Local Sales Tax Reform Fund 20% of the net revenue
realized for the preceding month from the tax imposed under
this Act; and
(2) each month the Department shall pay into the
General Revenue Fund 80% of the net revenue realized for
the preceding month from the tax imposed under this Act.
Section 30. One-Time Transitional Use Tax Credit. Within 3
months after effective date of this Act, the merchant shall
file an application (upon a form prescribed and furnished by
the Department) to receive a one-time credit for the Use Tax
paid on merchandise subject to tax under this Act purchased
during the 6 months immediately prior to the effective date of
this Act. The Department shall issue a credit equal to the
total Use Tax paid in the 6 months immediately prior to the
effective date of this Act. Upon the issuance of the credit,
the merchant may apply the credit against the tax imposed under
this Act.
Section 35. Applicability. This Act does not apply to

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tangible personal property which is required to be titled and
registered by a State agency.
Section 40. Rulemaking. The Department may make such rules
as it may deem necessary to implement the purposes of this Act.
Section 45. The State Finance Act is amended by adding
Sections 5.878 and 6z-102 as follows:
(30 ILCS 105/5.878 new)
Sec. 5.878. The Rental Purchase Agreement Tax Refund Fund.
(30 ILCS 105/6z-102 new)
Sec. 6z-102. The Rental Purchase Agreement Tax Refund Fund.
(a) The Rental Purchase Agreement Tax Refund Fund is hereby
created as a special fund in the State Treasury. Moneys in the
Fund shall be used by the Department of Revenue to pay refunds
of Rental Purchase Agreement Tax in the manner provided in
Section 6 of the Retailers' Occupation Tax Act and Section 19
of the Use Tax Act, as incorporated into Sections 10 and 15 of
the Rental Purchase Agreement Tax Act.
(b) Moneys in the Rental Purchase Agreement Tax Refund Fund
shall be expended exclusively for the purpose of paying refunds
pursuant to this Section.
(c) The Director of Revenue shall order payment of refunds
under this Section from the Rental Purchase Agreement Tax

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Refund Fund only to the extent that amounts collected pursuant
to Sections 10 and 15 of the Rental Purchase Agreement
Occupation and Use Tax Act have been deposited and retained in
the Fund.
As soon as possible after the end of each fiscal year, the
Director of Revenue shall order transferred, and the State
Treasurer and State Comptroller shall transfer from the Rental
Purchase Agreement Tax Refund Fund to the General Revenue Fund,
any surplus remaining as of the end of such fiscal year.
This Section shall constitute an irrevocable and continuing
appropriation from the Rental Purchase Agreement Tax Refund
Fund for the purpose of paying refunds in accordance with the
provisions of this Section.".