Bill Text: IL SB1418 | 2009-2010 | 96th General Assembly | Introduced
Bill Title:
Spectrum: Partisan Bill (Republican 4-0)
Status: (Failed) 2011-01-12 - Session Sine Die [SB1418 Detail]
Download: Illinois-2009-SB1418-Introduced.html
|
||||||||||||||||||||||
|
||||||||||||||||||||||
| ||||||||||||||||||||||
| ||||||||||||||||||||||
| ||||||||||||||||||||||
1 | AN ACT concerning revenue.
| |||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| |||||||||||||||||||||
3 | represented in the General Assembly:
| |||||||||||||||||||||
4 | Section 5. The Use Tax Act is amended by adding Section 3b | |||||||||||||||||||||
5 | as follows:
| |||||||||||||||||||||
6 | (35 ILCS 105/3b new) | |||||||||||||||||||||
7 | Sec. 3b. Back-To-School Tax Holiday. | |||||||||||||||||||||
8 | (a) No tax is imposed under this Act upon the privilege of | |||||||||||||||||||||
9 | using, in this State, qualified merchandise that is purchased | |||||||||||||||||||||
10 | at retail from a retailer if the qualified merchandise is | |||||||||||||||||||||
11 | purchased during the holiday period. | |||||||||||||||||||||
12 | (b) For the purpose of this Section: | |||||||||||||||||||||
13 | "Holiday period" means the period from 12:01 a.m. on the | |||||||||||||||||||||
14 | first Friday in August through
midnight of the following | |||||||||||||||||||||
15 | Sunday. | |||||||||||||||||||||
16 | "Qualified merchandise" means: | |||||||||||||||||||||
17 | (1) school supplies; | |||||||||||||||||||||
18 | (2) an article of clothing or footwear that is | |||||||||||||||||||||
19 | purchased for a selling price of $200 or less; and | |||||||||||||||||||||
20 | (3) a computer that is purchased for a selling price of | |||||||||||||||||||||
21 | $3,000 or less. | |||||||||||||||||||||
22 | "Clothing or footwear" means an article of apparel designed | |||||||||||||||||||||
23 | to be worn about the human body. The term does not include |
| |||||||
| |||||||
1 | accessories such as jewelry, handbags, purses, briefcases, | ||||||
2 | luggage, wallets, watches, and similar items that are carried | ||||||
3 | on or about the human body, without regard to whether the item | ||||||
4 | is worn on the body in a manner that is characteristic of | ||||||
5 | clothing. | ||||||
6 | "Computer" means a central processing unit for personal use | ||||||
7 | plus any peripheral sold with it and any computer software | ||||||
8 | installed in it at the time of purchase. The term "computer" | ||||||
9 | includes desktop computers, laptop computers, hand-held | ||||||
10 | computers, and personal digital assistants. The term | ||||||
11 | "computer" does not include any device designed primarily for | ||||||
12 | video game applications. The term "peripheral" includes any | ||||||
13 | monitor, keyboard, printer, scanner, web/PC camera, | ||||||
14 | microphone, external drive, network card, internal drive, and | ||||||
15 | additional storage. | ||||||
16 | "School supplies" means pens, pencils,
erasers, crayons, | ||||||
17 | notebooks, notebook filler paper, legal pads, composition
| ||||||
18 | books, poster paper, scissors, cellophane tape, glue or paste, | ||||||
19 | rulers,
protractors, compasses, calculators, and similar items | ||||||
20 | commonly used by students for school
purposes. | ||||||
21 | (c) For the purpose of this Section, a "purchase" occurs
| ||||||
22 | during the tax holiday if the buyer places an order and pays
| ||||||
23 | the purchase price by cash or credit during the tax holiday
| ||||||
24 | period regardless of whether the delivery of the item occurs
| ||||||
25 | after the tax holiday period. | ||||||
26 | An item of qualified merchandise that is placed in a |
| |||||||
| |||||||
1 | layaway or similar deferred plan during the holiday period is | ||||||
2 | not eligible for the exemption unless the item is delivered to | ||||||
3 | the purchaser during the period. An item that was placed in a | ||||||
4 | layaway or similar deferred plan before the holiday period and | ||||||
5 | is then delivered to the purchaser during the holiday period is | ||||||
6 | eligible for the exemption. | ||||||
7 | (d) Any discount,
coupon, or other credit offered either by | ||||||
8 | the retailer or by a
vendor of the retailer to reduce the final | ||||||
9 | price to the
customer must be taken into account in determining | ||||||
10 | the selling
price of the item for the purposes of this holiday. | ||||||
11 | If the price of an item is free or reduced with the purchase of | ||||||
12 | another item, then the total price of the items may not be | ||||||
13 | averaged in order for both items to qualify for the holiday. | ||||||
14 | The amount of any rebate may not be considered when | ||||||
15 | determining the selling price of the item for the purposes of | ||||||
16 | this holiday.
| ||||||
17 | (e) Articles that are normally sold as a unit must continue
| ||||||
18 | to be sold in that manner; they may not be priced separately | ||||||
19 | and
sold as individual items in order to be subject to the | ||||||
20 | holiday.
For example, if a pair of shoes sells for $220, the | ||||||
21 | pair cannot
be split in order to sell each shoe for $110 to | ||||||
22 | qualify for the
holiday. If a uniform is normally priced at | ||||||
23 | $250 on a single price
tag, the uniform cannot be split into | ||||||
24 | separate articles so that
any of the components may be sold for | ||||||
25 | less than $200 in order
to qualify for the holiday. Components | ||||||
26 | that are
normally priced as separate articles, however, may |
| |||||||
| |||||||
1 | continue to be sold as
separate articles. | ||||||
2 | (f) Qualified merchandise that customers purchase during | ||||||
3 | the holiday period with the use of a rain check qualify for the | ||||||
4 | holiday regardless of when the rain check was issued. The | ||||||
5 | issuance of a rain check, however, during the holiday period | ||||||
6 | does not qualify merchandise for the exemption if the | ||||||
7 | merchandise is actually purchased after the holiday period. | ||||||
8 | (g) If a customer purchases an item of qualified | ||||||
9 | merchandise during the holiday period but later exchanges the | ||||||
10 | item for a substantially similar item of a different size, | ||||||
11 | different color, or other feature, then no additional tax is | ||||||
12 | due even if the exchange is made after the holiday period. | ||||||
13 | If a customer purchases an item of qualified merchandise | ||||||
14 | during the holiday period, but after the holiday period has | ||||||
15 | ended, the customer returns the item and receives credit on the | ||||||
16 | purchase of a different item, then the newly purchased item is | ||||||
17 | subject to the full tax rate. | ||||||
18 | If a customer purchases an item of qualified merchandise | ||||||
19 | before the holiday period, but during the holiday period, the | ||||||
20 | customer returns the item and receives credit on the purchase | ||||||
21 | of a different item of qualified merchandise, then the newly | ||||||
22 | purchased item is subject to the exemption.
| ||||||
23 | (h) Each unit of local government that imposes a use tax
| ||||||
24 | may, by resolution or ordinance, declare a tax holiday with
| ||||||
25 | respect to its use tax for the same items, during the same
| ||||||
26 | periods, and under the same conditions and is encouraged to do
|
| |||||||
| |||||||
1 | so.
| ||||||
2 | Section 10. The Retailers' Occupation Tax Act is amended by | ||||||
3 | adding Section 2-75 as follows:
| ||||||
4 | (35 ILCS 120/2-75 new) | ||||||
5 | Sec. 2-75. Back-To-School Tax Holiday. | ||||||
6 | (a) No tax is imposed under this Act upon persons engaged | ||||||
7 | in the business of selling, at retail, qualified merchandise if | ||||||
8 | the qualified merchandise is purchased during the holiday | ||||||
9 | period. | ||||||
10 | (b) For the purpose of this Section: | ||||||
11 | "Holiday period" means the period from 12:01 a.m. on the | ||||||
12 | first Friday in August through
midnight of the following | ||||||
13 | Sunday. | ||||||
14 | "Qualified merchandise" means: | ||||||
15 | (1) school supplies; | ||||||
16 | (2) an article of clothing or footwear that is | ||||||
17 | purchased for a selling price of $200 or less; and | ||||||
18 | (3) a computer that is purchased for a selling price of | ||||||
19 | $3,000 or less. | ||||||
20 | "Clothing or footwear" means an article of apparel designed | ||||||
21 | to be worn about the human body. The term does not include | ||||||
22 | accessories such as jewelry, handbags, purses, briefcases, | ||||||
23 | luggage, wallets, watches, and similar items that are carried | ||||||
24 | on or about the human body, without regard to whether the item |
| |||||||
| |||||||
1 | is worn on the body in a manner that is characteristic of | ||||||
2 | clothing. | ||||||
3 | "Computer" means a central processing unit for personal use | ||||||
4 | plus any peripheral sold with it and any computer software | ||||||
5 | installed in it at the time of purchase. The term "computer" | ||||||
6 | includes desktop computers, laptop computers, hand-held | ||||||
7 | computers, and personal digital assistants. The term | ||||||
8 | "computer" does not include any device designed primarily for | ||||||
9 | video game applications. The term "peripheral" includes any | ||||||
10 | monitor, keyboard, printer, scanner, web/PC camera, | ||||||
11 | microphone, external drive, network card, internal drive, and | ||||||
12 | additional storage. | ||||||
13 | "School supplies" means pens, pencils,
erasers, crayons, | ||||||
14 | notebooks, notebook filler paper, legal pads, composition
| ||||||
15 | books, poster paper, scissors, cellophane tape, glue or paste, | ||||||
16 | rulers,
protractors, compasses, calculators, and similar items | ||||||
17 | commonly used by students for school
purposes. | ||||||
18 | (c) For the purpose of this Section, a "purchase" occurs
| ||||||
19 | during the tax holiday if the buyer places an order and pays
| ||||||
20 | the purchase price by cash or credit during the tax holiday
| ||||||
21 | period regardless of whether the delivery of the item occurs
| ||||||
22 | after the tax holiday period. | ||||||
23 | An item of qualified merchandise that is placed in a | ||||||
24 | layaway or similar deferred plan during the holiday period is | ||||||
25 | not eligible for the exemption unless the item is delivered to | ||||||
26 | the purchaser during the period. An item that was placed in a |
| |||||||
| |||||||
1 | layaway or similar deferred plan before the holiday period and | ||||||
2 | is then delivered to the purchaser during the holiday period is | ||||||
3 | eligible for the exemption. | ||||||
4 | (d) Any discount,
coupon, or other credit offered either by | ||||||
5 | the retailer or by a
vendor of the retailer to reduce the final | ||||||
6 | price to the
customer must be taken into account in determining | ||||||
7 | the selling
price of the item for the purposes of this holiday. | ||||||
8 | If the price of an item is free or reduced with the purchase of | ||||||
9 | another item, then the total price of the items may not be | ||||||
10 | averaged in order for both items to qualify for the holiday. | ||||||
11 | The amount of any rebate may not be considered when | ||||||
12 | determining the selling price of the item for the purposes of | ||||||
13 | this holiday.
| ||||||
14 | (e) Articles that are normally sold as a unit must continue
| ||||||
15 | to be sold in that manner; they may not be priced separately | ||||||
16 | and
sold as individual items in order to be subject to the | ||||||
17 | holiday.
For example, if a pair of shoes sells for $220, the | ||||||
18 | pair cannot
be split in order to sell each shoe for $110 to | ||||||
19 | qualify for the
holiday. If a uniform is normally priced at | ||||||
20 | $250 on a single price
tag, the uniform cannot be split into | ||||||
21 | separate articles so that
any of the components may be sold for | ||||||
22 | less than $200 in order
to qualify for the holiday. Components | ||||||
23 | that are
normally priced as separate articles, however, may | ||||||
24 | continue to be sold as
separate articles. | ||||||
25 | (f) Qualified merchandise that customers purchase during | ||||||
26 | the holiday period with the use of a rain check qualify for the |
| |||||||
| |||||||
1 | holiday regardless of when the rain check was issued. The | ||||||
2 | issuance of a rain check, however, during the holiday period | ||||||
3 | does not qualify merchandise for the exemption if the | ||||||
4 | merchandise is actually purchased after the holiday period. | ||||||
5 | (g) If a customer purchases an item of qualified | ||||||
6 | merchandise during the holiday period but later exchanges the | ||||||
7 | item for a substantially similar item of a different size, | ||||||
8 | different color, or other feature, then no additional tax is | ||||||
9 | due even if the exchange is made after the holiday period. | ||||||
10 | If a customer purchases an item of qualified merchandise | ||||||
11 | during the holiday period, but after the holiday period has | ||||||
12 | ended, the customer returns the item and receives credit on the | ||||||
13 | purchase of a different item, then the newly purchased item is | ||||||
14 | subject to the full tax rate. | ||||||
15 | If a customer purchases an item of qualified merchandise | ||||||
16 | before the holiday period, but during the holiday period, the | ||||||
17 | customer returns the item and receives credit on the purchase | ||||||
18 | of a different item of qualified merchandise, then the newly | ||||||
19 | purchased item is subject to the exemption.
| ||||||
20 | (h) Each unit of local government that imposes a retailers' | ||||||
21 | occupation tax
may, by resolution or ordinance, declare a tax | ||||||
22 | holiday with
respect to its use tax for the same items, during | ||||||
23 | the same
periods, and under the same conditions and is | ||||||
24 | encouraged to do
so.
| ||||||
25 | Section 99. Effective date. This Act takes effect upon | ||||||
26 | becoming law.
|