Bill Text: IL HB5542 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that no tax is imposed under the Acts upon the use or purchase of energy-efficient products that qualify as "Energy Star" products under the federal Energy Star Program and that are purchased at a price of $1,500 or less during a tax holiday. Defines "tax-holiday" as the periods each year: (1) beginning at 12:01 a.m. on November 1st and continuing through 11:59 p.m. on November 7th; and (2) beginning at 12:01 a.m. on April 22nd and continuing through 11:59 p.m. on April 28th. Sets forth criteria for transactions to qualify for the exemption. Effective immediately.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2010-03-15 - Rule 19(a) / Re-referred to Rules Committee [HB5542 Detail]

Download: Illinois-2009-HB5542-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB5542 Introduced 2/9/2010, by Rep. John D. Cavaletto SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-13 new
35 ILCS 110/3-13 new
35 ILCS 115/3-13 new
35 ILCS 120/2-13 new
Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that no tax is imposed under the Acts upon the use or purchase of energy-efficient products that qualify as "Energy Star" products under the federal Energy Star Program and that are purchased at a price of $1,500 or less during a tax holiday. Defines "tax-holiday" as the periods each year: (1) beginning at 12:01 a.m. on November 1st and continuing through 11:59 p.m. on November 7th; and (2) beginning at 12:01 a.m. on April 22nd and continuing through 11:59 p.m. on April 28th. Sets forth criteria for transactions to qualify for the exemption. Effective immediately.
LRB096 16394 HLH 31659 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
HB5542 LRB096 16394 HLH 31659 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Use Tax Act is amended by adding Section
3-13 as follows:
(35 ILCS 105/3-13 new)
Sec. 3-13. Tax holiday for energy-efficient products.
(a) No tax is imposed under this Act upon the privilege of
using, in this State, any energy-efficient product that is
purchased at retail at a sales price of $1,500 or less if the
product is purchased during a holiday period.
(b) For the purpose of this Section:
"Holiday period" means the periods each year:
(1) beginning at 12:01 a.m. on November 1st and
continuing through 11:59 p.m. on November 7th; and
(2) beginning at 12:01 a.m. on April 22nd and
continuing through 11:59 p.m. on April 28th.
"Energy-efficient product" means a dishwasher, clothes
washer, air conditioner, ceiling fan, incandescent or
fluorescent light bulb, dehumidifier, programmable thermostat,
or refrigerator that qualifies as an "Energy Star" product
under the Energy Star Program administered by the United States
Environmental Protection Agency.

HB5542 - 2 - LRB096 16394 HLH 31659 b
(c) For purpose of this Section, a "purchase" occurs during
the tax holiday if the buyer places an order and pays the
purchase price by cash or credit during the tax holiday period
regardless of whether the delivery of the product occurs after
the tax holiday period.
An energy-efficient product that is placed in a layaway or
similar deferred plan during the holiday period is not eligible
for the exemption unless the product is delivered to the
purchaser during the holiday period. An energy-efficient
product that was placed in a layaway or similar deferred plan
before the holiday period and is then delivered to the
purchaser during the holiday period is eligible for the
exemption.
(d) Any discount, coupon, or other credit offered either by
the retailer or by a vendor of the retailer to reduce the final
price to the customer must be taken into account in determining
the selling price of the product for the purposes of this
holiday. If the price of a product is free or reduced with the
purchase of another energy-efficient product, then the total
price of the products may not be averaged in order for both
products to qualify for the holiday.
The amount of any rebate may not be considered when
determining the selling price of an energy-efficient product
for the purposes of this holiday.
(e) Articles that are normally sold as a unit must continue
to be sold in that manner; they may not be priced separately

HB5542 - 3 - LRB096 16394 HLH 31659 b
and sold as individual items in order to be subject to the
holiday. Components that are normally priced as separate
articles, however, may continue to be sold as separate
articles.
(f) An energy-efficient product that a customer purchases
during the holiday period with the use of a rain check
qualifies for the holiday regardless of when the rain check was
issued. The issuance of a rain check, however, during the
holiday period does not qualify merchandise for the exemption
if the product is actually purchased after the holiday period.
(g) If a customer purchases an energy-efficient product
during the holiday period but later exchanges the product for a
substantially similar product of a different size, different
color, or other feature, then no additional tax is due even if
the exchange is made after the holiday period.
If a customer purchases an energy-efficient product during
the holiday period, but, after the holiday period has ended,
the customer returns the product and receives credit on the
purchase of a different product, then the newly purchased
product is subject to the full tax rate.
If a customer purchases an energy-efficient product before
the holiday period, but, during the holiday period, the
customer returns the product and receives credit on the
purchase of a different energy-efficient product, then the
newly purchased product is subject to the exemption.
(h) Each unit of local government that imposes a use tax

HB5542 - 4 - LRB096 16394 HLH 31659 b
may, by resolution or ordinance, declare a tax holiday with
respect to its use tax for the same items, during the same
periods, and under the same conditions and is encouraged to do
so.
Section 10. The Service Use Tax Act is amended by adding
Section 3-13 as follows:
(35 ILCS 110/3-13 new)
Sec. 3-13. Tax holiday for energy-efficient products.
(a) No tax is imposed under this Act upon the privilege of
using, in this State, any energy-efficient product that is
purchased at retail at a sales price of $1,500 or less if the
product is purchased during a holiday period.
(b) For the purpose of this Section:
"Holiday period" means the periods each year:
(1) beginning at 12:01 a.m. on November 1st and
continuing through 11:59 p.m. on November 7th; and
(2) beginning at 12:01 a.m. on April 22nd and
continuing through 11:59 p.m. on April 28th.
"Energy-efficient product" means a dishwasher, clothes
washer, air conditioner, ceiling fan, incandescent or
fluorescent light bulb, dehumidifier, programmable thermostat,
or refrigerator that qualifies as an "Energy Star" product
under the Energy Star Program administered by the United States
Environmental Protection Agency.

HB5542 - 5 - LRB096 16394 HLH 31659 b
(c) For purpose of this Section, a "purchase" occurs during
the tax holiday if the buyer places an order and pays the
purchase price by cash or credit during the tax holiday period
regardless of whether the delivery of the product occurs after
the tax holiday period.
An energy-efficient product that is placed in a layaway or
similar deferred plan during the holiday period is not eligible
for the exemption unless the product is delivered to the
purchaser during the holiday period. An energy-efficient
product that was placed in a layaway or similar deferred plan
before the holiday period and is then delivered to the
purchaser during the holiday period is eligible for the
exemption.
(d) Any discount, coupon, or other credit offered either by
the retailer or by a vendor of the retailer to reduce the final
price to the customer must be taken into account in determining
the selling price of the product for the purposes of this
holiday. If the price of a product is free or reduced with the
purchase of another energy-efficient product, then the total
price of the products may not be averaged in order for both
products to qualify for the holiday.
The amount of any rebate may not be considered when
determining the selling price of an energy-efficient product
for the purposes of this holiday.
(e) Articles that are normally sold as a unit must continue
to be sold in that manner; they may not be priced separately

HB5542 - 6 - LRB096 16394 HLH 31659 b
and sold as individual items in order to be subject to the
holiday. Components that are normally priced as separate
articles, however, may continue to be sold as separate
articles.
(f) An energy-efficient product that a customer purchases
during the holiday period with the use of a rain check
qualifies for the holiday regardless of when the rain check was
issued. The issuance of a rain check, however, during the
holiday period does not qualify merchandise for the exemption
if the product is actually purchased after the holiday period.
(g) If a customer purchases an energy-efficient product
during the holiday period but later exchanges the product for a
substantially similar product of a different size, different
color, or other feature, then no additional tax is due even if
the exchange is made after the holiday period.
If a customer purchases an energy-efficient product during
the holiday period, but, after the holiday period has ended,
the customer returns the product and receives credit on the
purchase of a different product, then the newly purchased
product is subject to the full tax rate.
If a customer purchases an energy-efficient product before
the holiday period, but, during the holiday period, the
customer returns the product and receives credit on the
purchase of a different energy-efficient product, then the
newly purchased product is subject to the exemption.
(h) Each unit of local government that imposes a service

HB5542 - 7 - LRB096 16394 HLH 31659 b
use tax may, by resolution or ordinance, declare a tax holiday
with respect to its use tax for the same items, during the same
periods, and under the same conditions and is encouraged to do
so.
Section 15. The Service Occupation Tax Act is amended by
adding Section 3-13 as follows:
(35 ILCS 115/3-13 new)
Sec. 3-13. Tax holiday for energy-efficient products.
(a) No tax is imposed under this Act upon persons engaged
in the business of selling, at retail, any energy-efficient
product if the product is purchased at a sales price of $1,500
or less during a tax-holiday period.
(b) For the purpose of this Section:
"Tax-holiday period" means the periods each year:
(1) beginning at 12:01 a.m. on November 1st and
continuing through 11:59 p.m. on November 7th; and
(2) beginning at 12:01 a.m. on April 22nd and
continuing through 11:59 p.m. on April 28th.
"Energy-efficient product" means a dishwasher, clothes
washer, air conditioner, ceiling fan, incandescent or
fluorescent light bulb, dehumidifier, programmable thermostat,
or refrigerator that qualifies as an "Energy Star" product
under the Energy Star Program administered by the United States
Environmental Protection Agency.

HB5542 - 8 - LRB096 16394 HLH 31659 b
(c) For purpose of this Section, a "purchase" occurs during
the tax holiday if the buyer places an order and pays the
purchase price by cash or credit during the tax holiday period
regardless of whether the delivery of the product occurs after
the tax holiday period.
An energy-efficient product that is placed in a layaway or
similar deferred plan during the holiday period is not eligible
for the exemption unless the product is delivered to the
purchaser during the holiday period. An energy-efficient
product that was placed in a layaway or similar deferred plan
before the holiday period and is then delivered to the
purchaser during the holiday period is eligible for the
exemption.
(d) Any discount, coupon, or other credit offered either by
the retailer or by a vendor of the retailer to reduce the final
price to the customer must be taken into account in determining
the selling price of the product for the purposes of this
holiday. If the price of a product is free or reduced with the
purchase of another energy-efficient product, then the total
price of the products may not be averaged in order for both
products to qualify for the holiday.
The amount of any rebate may not be considered when
determining the selling price of an energy-efficient product
for the purposes of this holiday.
(e) Articles that are normally sold as a unit must continue
to be sold in that manner; they may not be priced separately

HB5542 - 9 - LRB096 16394 HLH 31659 b
and sold as individual items in order to be subject to the
holiday. Components that are normally priced as separate
articles, however, may continue to be sold as separate
articles.
(f) An energy-efficient product that a customer purchases
during the holiday period with the use of a rain check
qualifies for the holiday regardless of when the rain check was
issued. The issuance of a rain check, however, during the
holiday period does not qualify merchandise for the exemption
if the product is actually purchased after the holiday period.
(g) If a customer purchases an energy-efficient product
during the holiday period but later exchanges the product for a
substantially similar product of a different size, different
color, or other feature, then no additional tax is due even if
the exchange is made after the holiday period.
If a customer purchases an energy-efficient product during
the holiday period, but, after the holiday period has ended,
the customer returns the product and receives credit on the
purchase of a different product, then the newly purchased
product is subject to the full tax rate.
If a customer purchases an energy-efficient product before
the holiday period, but, during the holiday period, the
customer returns the product and receives credit on the
purchase of a different energy-efficient product, then the
newly purchased product is subject to the exemption.
(h) Each unit of local government that imposes a service

HB5542 - 10 - LRB096 16394 HLH 31659 b
occupation tax may, by resolution or ordinance, declare a tax
holiday with respect to its occupation tax for the same items,
during the same periods, and under the same conditions and is
encouraged to do so.
Section 20. The Retailers' Occupation Tax Act is amended by
adding Section 2-13 as follows:
(35 ILCS 120/2-13 new)
Sec. 2-13. Tax holiday for energy-efficient products.
(a) No tax is imposed under this Act upon persons engaged
in the business of selling, at retail, any energy-efficient
product if the product is purchased at a sales price of $1,500
or less during a tax-holiday period.
(b) For the purpose of this Section:
"Tax-holiday period" means the periods each year:
(1) beginning at 12:01 a.m. on November 1st and
continuing through 11:59 p.m. on November 7th; and
(2) beginning at 12:01 a.m. on April 22nd and
continuing through 11:59 p.m. on April 28th.
"Energy-efficient product" means a dishwasher, clothes
washer, air conditioner, ceiling fan, incandescent or
fluorescent light bulb, dehumidifier, programmable thermostat,
or refrigerator that qualifies as an "Energy Star" product
under the Energy Star Program administered by the United States
Environmental Protection Agency.

HB5542 - 11 - LRB096 16394 HLH 31659 b
(c) For purpose of this Section, a "purchase" occurs during
the tax holiday if the buyer places an order and pays the
purchase price by cash or credit during the tax holiday period
regardless of whether the delivery of the product occurs after
the tax holiday period.
An energy-efficient product that is placed in a layaway or
similar deferred plan during the holiday period is not eligible
for the exemption unless the product is delivered to the
purchaser during the holiday period. An energy-efficient
product that was placed in a layaway or similar deferred plan
before the holiday period and is then delivered to the
purchaser during the holiday period is eligible for the
exemption.
(d) Any discount, coupon, or other credit offered either by
the retailer or by a vendor of the retailer to reduce the final
price to the customer must be taken into account in determining
the selling price of the product for the purposes of this
holiday. If the price of a product is free or reduced with the
purchase of another energy-efficient product, then the total
price of the products may not be averaged in order for both
products to qualify for the holiday.
The amount of any rebate may not be considered when
determining the selling price of an energy-efficient product
for the purposes of this holiday.
(e) Articles that are normally sold as a unit must continue
to be sold in that manner; they may not be priced separately

HB5542 - 12 - LRB096 16394 HLH 31659 b
and sold as individual items in order to be subject to the
holiday. Components that are normally priced as separate
articles, however, may continue to be sold as separate
articles.
(f) An energy-efficient product that a customer purchases
during the holiday period with the use of a rain check
qualifies for the holiday regardless of when the rain check was
issued. The issuance of a rain check, however, during the
holiday period does not qualify merchandise for the exemption
if the product is actually purchased after the holiday period.
(g) If a customer purchases an energy-efficient product
during the holiday period but later exchanges the product for a
substantially similar product of a different size, different
color, or other feature, then no additional tax is due even if
the exchange is made after the holiday period.
If a customer purchases an energy-efficient product during
the holiday period, but, after the holiday period has ended,
the customer returns the product and receives credit on the
purchase of a different product, then the newly purchased
product is subject to the full tax rate.
If a customer purchases an energy-efficient product before
the holiday period, but, during the holiday period, the
customer returns the product and receives credit on the
purchase of a different energy-efficient product, then the
newly purchased product is subject to the exemption.
(h) Each unit of local government that imposes a retailers'

HB5542 - 13 - LRB096 16394 HLH 31659 b
occupation tax may, by resolution or ordinance, declare a tax
holiday with respect to its occupation tax for the same items,
during the same periods, and under the same conditions and is
encouraged to do so.
Section 99. Effective date. This Act takes effect upon
becoming law.