Bill Text: IL HB0451 | 2009-2010 | 96th General Assembly | Introduced
Bill Title: Amends the Use Tax Act and the Retailers' Occupation Tax Act. Imposes an additional tax of 5% on the following luxury items: (1) a passenger motor vehicle to the extent that the selling price exceeds $60,000; (2) a vessel (watercraft) to the extent that the selling price exceeds $200,000; (3) an aircraft to the extent that the selling price exceeds $500,000; and (4) jewelry or fur clothing and footwear to the extent that the selling price per item of jewelry or fur clothing and footwear exceeds $20,000. Provides for administration and collection of the tax. Provides for all amounts collected to be deposited into the General Revenue Fund. Contains other provisions. Effective July 1, 2009.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-03-13 - Rule 19(a) / Re-referred to Rules Committee [HB0451 Detail]
Download: Illinois-2009-HB0451-Introduced.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Use Tax Act is amended by adding Section 3-1 | ||||||||||||||||||||||||||
5 | as follows:
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6 | (35 ILCS 105/3-1 new) | ||||||||||||||||||||||||||
7 | Sec. 3-1. Tax surcharge on certain luxury property. | ||||||||||||||||||||||||||
8 | (a) Definitions. For purposes of the tax imposed by this | ||||||||||||||||||||||||||
9 | Section, the following terms mean: | ||||||||||||||||||||||||||
10 | (1) Passenger motor vehicle. A motor vehicle of the | ||||||||||||||||||||||||||
11 | first division as defined in Section 1-46 of the Illinois | ||||||||||||||||||||||||||
12 | Vehicle Code, but not including a vehicle purchased for use | ||||||||||||||||||||||||||
13 | exclusively in the active conduct of a trade or business of | ||||||||||||||||||||||||||
14 | transporting persons or property for compensation or hire, | ||||||||||||||||||||||||||
15 | a vehicle purchased for use exclusively in providing | ||||||||||||||||||||||||||
16 | emergency medical services, or a demonstrator vehicle. | ||||||||||||||||||||||||||
17 | (2) Vessel. A vessel or watercraft, as defined in | ||||||||||||||||||||||||||
18 | Section 1-2 of the Boat Registration and Safety Act, but | ||||||||||||||||||||||||||
19 | not including a vessel purchased for use exclusively in the | ||||||||||||||||||||||||||
20 | active conduct of a trade or business of transporting | ||||||||||||||||||||||||||
21 | persons or property for compensation or hire, a vessel | ||||||||||||||||||||||||||
22 | purchased for use exclusively in providing emergency | ||||||||||||||||||||||||||
23 | medical services, or a demonstrator vessel. |
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1 | (3) Aircraft. Any aircraft that is propelled by a motor | ||||||
2 | or engine and is capable of carrying one or more | ||||||
3 | individuals, but not including aircraft purchased for use | ||||||
4 | exclusively in the active conduct of a trade or business of | ||||||
5 | transporting persons or property for compensation or hire, | ||||||
6 | an aircraft purchased for use exclusively in providing | ||||||
7 | emergency medical services, or a demonstrator aircraft. | ||||||
8 | (4) Jewelry. All articles commonly or commercially | ||||||
9 | known as jewelry, whether real or imitation, including but | ||||||
10 | not limited to rings, earrings, necklaces, bracelets, and | ||||||
11 | watches, and also including loose pearls and precious and | ||||||
12 | semi-precious stones. | ||||||
13 | (5) Fur clothing and footwear. Clothing and footwear | ||||||
14 | made, in whole or in part, of any animal skin or part | ||||||
15 | thereof with hair, fleece, or fur fibers attached thereto, | ||||||
16 | in either its raw or processed state, but not including | ||||||
17 | skins that are converted into leather or that in processing | ||||||
18 | have had the hair, fleece, or fur fiber completely removed. | ||||||
19 | (b) Imposition of additional tax. Notwithstanding any | ||||||
20 | other provision of this Act or any other law to the contrary, | ||||||
21 | in addition to all other taxes, a tax is imposed at the rate of | ||||||
22 | 5% upon the privilege of using in this State the following | ||||||
23 | tangible personal property purchased at retail from a retailer: | ||||||
24 | (1) a passenger motor vehicle to the extent that the | ||||||
25 | selling price exceeds $60,000; | ||||||
26 | (2) a vessel to the extent that the selling price |
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1 | exceeds $200,000; | ||||||
2 | (3) an aircraft to the extent that the selling price | ||||||
3 | exceeds $500,000; and | ||||||
4 | (4) jewelry or fur clothing and footwear to the extent | ||||||
5 | that the selling price per item of jewelry or fur clothing | ||||||
6 | and footwear exceeds $20,000; an item that is ordinarily | ||||||
7 | sold as a pair, such as earrings or gloves, are considered | ||||||
8 | to be one item for purposes of this Section. | ||||||
9 | (c) Special rules. Notwithstanding any other provision of | ||||||
10 | this Act or any other law to the contrary, for purposes of this | ||||||
11 | Section: | ||||||
12 | (1) Selling price has the same definition as set forth | ||||||
13 | in Section 2, except that the value of or credit given for | ||||||
14 | traded-in tangible personal property shall be included | ||||||
15 | instead of deducted. Selling price also includes the price | ||||||
16 | of any property installed on a passenger motor vehicle, | ||||||
17 | vessel, or aircraft by the vendor of that vehicle, vessel, | ||||||
18 | or aircraft within 6 months of the sale of the vehicle, | ||||||
19 | vessel, or aircraft, plus any charge for installing that | ||||||
20 | property, but does not include the selling price of any | ||||||
21 | property installed on a passenger motor vehicle to make it | ||||||
22 | adaptable for use by a person with a disability or to | ||||||
23 | replace damaged, defective, or malfunctioning property, or | ||||||
24 | any charge for installing that property. | ||||||
25 | (2) With respect to any lease of a passenger motor | ||||||
26 | vehicle, vessel, or aircraft for a term of one year or |
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1 | more, selling price means the manufacturer's suggested | ||||||
2 | retail price for that vehicle, vessel, or aircraft, without | ||||||
3 | any deduction for the value of or credit given for | ||||||
4 | traded-in tangible personal property. The tax due under | ||||||
5 | this Section must be collected at the time the first | ||||||
6 | payment is made under the lease, option to renew, or | ||||||
7 | similar provision or combination of them, or as of the date | ||||||
8 | of registration under Illinois law, whichever is earlier. | ||||||
9 | (d) Incorporation of other provisions of this Act. Except | ||||||
10 | as otherwise provided in this Section, the taxes imposed by | ||||||
11 | this Section shall be identical to, and administered and | ||||||
12 | collected in a like manner as, the other taxes imposed under | ||||||
13 | this Act. All the provisions of this Act, including the | ||||||
14 | definition and exemption provisions and the provisions | ||||||
15 | relating or applicable to the administration and collection of | ||||||
16 | the other taxes imposed by this Act shall apply to the tax | ||||||
17 | imposed by this Section so far as those provisions can be made | ||||||
18 | applicable to the tax imposed by this Section, with such | ||||||
19 | modifications as may be necessary in order to adapt the | ||||||
20 | language of those provisions to the tax imposed by this | ||||||
21 | Section. Those provisions shall apply with the same force and | ||||||
22 | effect as if the language of those provisions had been set | ||||||
23 | forth in full in this Section, except to the extent that any of | ||||||
24 | those provisions are either inconsistent with a provision of | ||||||
25 | this Section or are not relevant to the tax imposed by this | ||||||
26 | Section. For purposes of this Section, any reference to |
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1 | "selling price" means "selling price" as defined by this | ||||||
2 | Section and any reference in this Act to a tax or the taxes | ||||||
3 | otherwise imposed by this Act shall be deemed also to refer to | ||||||
4 | the tax imposed by this Section unless a different meaning is | ||||||
5 | clearly required. | ||||||
6 | (e) Separate statement of tax. Every person required to | ||||||
7 | collect the tax imposed by this Section shall state, charge, | ||||||
8 | and show that tax separately from the price or charge, and also | ||||||
9 | separately from any other tax imposed by this Act or other law, | ||||||
10 | on any sales slip, invoice, receipt, or other statement or | ||||||
11 | memorandum of the price or charge, paid or payable, given to | ||||||
12 | the customer. | ||||||
13 | (f) No discounts or credits for collection or remittance. | ||||||
14 | The taxes imposed by, and collected or paid over under, this | ||||||
15 | Section shall not be included or considered in computing any | ||||||
16 | discount or credit for the collection or remittance of those | ||||||
17 | taxes, including any discount under Section 9. | ||||||
18 | (g) Taxes are in addition to any other. The taxes imposed | ||||||
19 | by this Section are in addition to any other tax imposed or | ||||||
20 | authorized to be imposed by this Act or other law. | ||||||
21 | (h) Deposit into GRF. Notwithstanding any other provision | ||||||
22 | of this Act or any other law to the contrary, all amounts | ||||||
23 | collected under this Section shall be deposited into the | ||||||
24 | General Revenue Fund.
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25 | Section 10. The Retailers' Occupation Tax Act is amended by |
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1 | adding Section 2-1 as follows:
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2 | (35 ILCS 120/2-1 new) | ||||||
3 | Sec. 2-1. Tax surcharge on certain luxury property. | ||||||
4 | (a) Definitions. For purposes of the tax imposed by this | ||||||
5 | Section, the following terms mean: | ||||||
6 | (1) Passenger motor vehicle. A motor vehicle of the | ||||||
7 | first division as defined in Section 1-46 of the Illinois | ||||||
8 | Vehicle Code, but not including a vehicle purchased for use | ||||||
9 | exclusively in the active conduct of a trade or business of | ||||||
10 | transporting persons or property for compensation or hire, | ||||||
11 | a vehicle purchased for use exclusively in providing | ||||||
12 | emergency medical services, or a demonstrator vehicle. | ||||||
13 | (2) Vessel. A vessel or watercraft, as defined in | ||||||
14 | Section 1-2 of the Boat Registration and Safety Act, but | ||||||
15 | not including a vessel purchased for use exclusively in the | ||||||
16 | active conduct of a trade or business of transporting | ||||||
17 | persons or property for compensation or hire, a vessel | ||||||
18 | purchased for use exclusively in providing emergency | ||||||
19 | medical services, or a demonstrator vessel. | ||||||
20 | (3) Aircraft. Any aircraft that is propelled by a motor | ||||||
21 | or engine and is capable of carrying one or more | ||||||
22 | individuals, but not including aircraft purchased for use | ||||||
23 | exclusively in the active conduct of a trade or business of | ||||||
24 | transporting persons or property for compensation or hire, | ||||||
25 | an aircraft purchased for use exclusively in providing |
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1 | emergency medical services, or a demonstrator aircraft. | ||||||
2 | (4) Jewelry. All articles commonly or commercially | ||||||
3 | known as jewelry, whether real or imitation, including but | ||||||
4 | not limited to rings, earrings, necklaces, bracelets, and | ||||||
5 | watches, and also including loose pearls and precious and | ||||||
6 | semi-precious stones. | ||||||
7 | (5) Fur clothing and footwear. Clothing and footwear | ||||||
8 | made, in whole or in part, of any animal skin or part | ||||||
9 | thereof with hair, fleece, or fur fibers attached thereto, | ||||||
10 | in either its raw or processed state, but not including | ||||||
11 | skins that are converted into leather or that in processing | ||||||
12 | have had the hair, fleece, or fur fiber completely removed. | ||||||
13 | (b) Imposition of additional tax. Notwithstanding any | ||||||
14 | other provision of this Act or any other law to the contrary, | ||||||
15 | in addition to all other taxes, a tax is imposed upon persons | ||||||
16 | engaged in the business of selling the following tangible | ||||||
17 | personal property in the course of business at the rate of 5% | ||||||
18 | of the gross receipts from sales: | ||||||
19 | (1) a passenger motor vehicle to the extent that the | ||||||
20 | selling price exceeds $60,000; | ||||||
21 | (2) a vessel to the extent that the selling price | ||||||
22 | exceeds $200,000; | ||||||
23 | (3) an aircraft to the extent that the selling price | ||||||
24 | exceeds $500,000; and | ||||||
25 | (4) jewelry or fur clothing and footwear to the extent | ||||||
26 | that the selling price per item of jewelry or fur clothing |
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1 | and footwear exceeds $20,000; an item that is ordinarily | ||||||
2 | sold as a pair, such as earrings or gloves, are considered | ||||||
3 | to be one item for purposes of this Section. | ||||||
4 | (c) Special rules. Notwithstanding any other provision of | ||||||
5 | this Act or any other law to the contrary, for purposes of this | ||||||
6 | Section: | ||||||
7 | (1) Selling price has the same definition as set forth | ||||||
8 | in Section 1, except that the value of or credit given for | ||||||
9 | traded-in tangible personal property shall be included | ||||||
10 | instead of deducted. Selling price also includes the price | ||||||
11 | of any property installed on a passenger motor vehicle, | ||||||
12 | vessel, or aircraft by the vendor of that vehicle, vessel, | ||||||
13 | or aircraft within 6 months of the sale of the vehicle, | ||||||
14 | vessel, or aircraft, plus any charge for installing that | ||||||
15 | property, but does not include the selling price of any | ||||||
16 | property installed on a passenger motor vehicle to make it | ||||||
17 | adaptable for use by a person with a disability or to | ||||||
18 | replace damaged, defective, or malfunctioning property, or | ||||||
19 | any charge for installing that property. | ||||||
20 | (2) With respect to any lease of a passenger motor | ||||||
21 | vehicle, vessel, or aircraft for a term of one year or | ||||||
22 | more, selling price means the manufacturer's suggested | ||||||
23 | retail price for that vehicle, vessel, or aircraft, without | ||||||
24 | any deduction for the value of or credit given for | ||||||
25 | traded-in tangible personal property. The tax due under | ||||||
26 | this Section must be collected at the time the first |
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1 | payment is made under the lease, option to renew, or | ||||||
2 | similar provision or combination of them, or as of the date | ||||||
3 | of registration under Illinois law, whichever is earlier. | ||||||
4 | (d) Incorporation of other provisions of this Act. Except | ||||||
5 | as otherwise provided in this Section, the taxes imposed by | ||||||
6 | this Section shall be identical to, and administered and | ||||||
7 | collected in a like manner as, the other taxes imposed under | ||||||
8 | this Act. All the provisions of this Act, including the | ||||||
9 | definition and exemption provisions and the provisions | ||||||
10 | relating or applicable to the administration and collection of | ||||||
11 | the other taxes imposed by this Act shall apply to the tax | ||||||
12 | imposed by this Section so far as those provisions can be made | ||||||
13 | applicable to the tax imposed by this Section, with such | ||||||
14 | modifications as may be necessary in order to adapt the | ||||||
15 | language of those provisions to the tax imposed by this | ||||||
16 | Section. Those provisions shall apply with the same force and | ||||||
17 | effect as if the language of those provisions had been set | ||||||
18 | forth in full in this Section, except to the extent that any of | ||||||
19 | those provisions are either inconsistent with a provision of | ||||||
20 | this Section or are not relevant to the tax imposed by this | ||||||
21 | Section. For purposes of this Section, any reference to | ||||||
22 | "selling price" means "selling price" as defined by this | ||||||
23 | Section and any reference in this Act to a tax or the taxes | ||||||
24 | otherwise imposed by this Act shall be deemed also to refer to | ||||||
25 | the tax imposed by this Section unless a different meaning is | ||||||
26 | clearly required. |
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1 | (e) Separate statement of tax. Every person required to | ||||||
2 | collect the tax imposed by this Section shall state, charge, | ||||||
3 | and show that tax separately from the price or charge, and also | ||||||
4 | separately from any other tax imposed by this Act or other law, | ||||||
5 | on any sales slip, invoice, receipt, or other statement or | ||||||
6 | memorandum of the price or charge, paid or payable, given to | ||||||
7 | the customer. | ||||||
8 | (f) No discounts or credits for collection or remittance. | ||||||
9 | The taxes imposed by, and collected or paid over under, this | ||||||
10 | Section shall not be included or considered in computing any | ||||||
11 | discount or credit for the collection or remittance of those | ||||||
12 | taxes, including any discount under Section 3. | ||||||
13 | (g) Taxes are in addition to any other. The taxes imposed | ||||||
14 | by this Section are in addition to any other tax imposed or | ||||||
15 | authorized to be imposed by this Act or other law. | ||||||
16 | (h) Deposit into GRF. Notwithstanding any other provision | ||||||
17 | of this Act or any other law to the contrary, all amounts | ||||||
18 | collected under this Section shall be deposited into the | ||||||
19 | General Revenue Fund.
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20 | Section 99. Effective date. This Act takes effect July 1, | ||||||
21 | 2009.
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